Different Income tax rates for various sources of Income under Income Tax Act
Income tax act, 1961 has defined various heads/ sources of income under which the assessee can show his earned income in his income tax return.
Heads of income are mentioned in Section 14 of the Income Tax Act, 1961:
A.—Salaries.
B.—Income from house property.
C.—Profits and gains of business or profession.
D.—Capital gains.
E.—Income from other sources.
Income tax rate of salary income, income from house property, Income from business or profession, Income from capital gain and income from other sources is shown in below table:
| S. No. | Head of Income | Type of assessee | Income tax rate |
| 1. | Salary Income | Individual | Slab rate |
| 2. | Income from House property | Individual and HUF | Slab rate |
| LLP and Partnership firm | 30% | ||
| Company | 30% or 25% or 22% depending on the tax rate of company | ||
| 3. | Income from business or profession | Individual and HUF | Slab rate |
| LLP and Partnership firm | 30% | ||
| Company | 30% or 25% or 22% depending on the tax rate of company | ||
| 4. | Capital gain income | ||
| Short term capital gain other than those covered under section 111A | Individual and HUF | Slab rate | |
| LLP and Partnership firm | 30% | ||
| Company | 30% or 25% or 22% depending on the tax rate of company | ||
| Short term capital gain income covered under section 111A i.e. listed equity shares, equity oriented fund etc | Any assessee | 15% | |
| Long term capital gain on assets other than those covered under section 112A | Any Assessee | 20% | |
| Long term capital gain on assets covered under section 112A | Any assessee | 10% | |
| 5. | Income from other sources other than special rate income | Individual and HUF | Slab rate |
| LLP and Partnership firm | 30% | ||
| Company | 30% or 25% or 22% depending on the tax rate of company | ||
| Special rate income such as income from lottery, winning, horse races etc | Any assessee | 30% |
Please note that the tax rates mentioned above are just base rates and surcharge and cess shall be added if applicable. The rates mentioned above are for residents and the tax rates might change for non-residents.
Also, the details mentioned in table above are just for information and knowledge, it is advisable to talk to a professional before taking any tax decision.
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