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Income Tax Laws – I

Notes (c) Individual resident who is of the age of 80 years or more at any time during the previous year
Table 10.3: Tax Slabs for Individual Resident (Age 80 Years or More)

Income Slabs Income Tax Rates
i. Where the total income does not exceed NIL
` 5,00,000/-.
ii. Where the total income exceeds ` 5,00,000/- 20% of the amount by which the total
but does not exceed ` 10,00,000/- income exceeds ` 5,00,000/-.
iii. Where the total income exceeds ` 10,00,000/- ` 1,00,000/- + 30% of the amount by which
the total income exceeds ` 10,00,000/-.

Surcharge: 10% of the Income Tax, where total taxable income is more than ` 1 crore.
Education Cess: 3% of the total of Income Tax and Surcharge.
(d) For Co-operative Society

Table 10.4: Tax Slabs for Co-operative Society

Income Slabs Income Tax Rates
i. Where the total income does not exceed 10% of the income.
` 10,000/-.
ii. Where the total income exceeds ` 10,000/- ` 1,000/- + 20% of income in excess of
but does not exceed ` 20,000/-. ` 10,000/-.
iii. Where the total income exceeds ` 20,000/- ` 3,000/- + 30% of the amount by which the
total income exceeds ` 20,000/-.

Surcharge: 10% of the Income Tax, where total taxable income is more than ` 1 crore.
Education Cess: 3% of the total of Income Tax and Surcharge.

10.2.2 Advantages of Sole Proprietorship

Perhaps the greatest advantage of this form of business is its simplicity and low cost. You are not
required to file with the government, nor are any legal charter required. The sole proprietorship
form of business has other advantages:

The owner or proprietor is in complete control of business decisions.
The income generated through operations can be directed into the proprietor’s pocket or
reinvested as he or she sees fit.

Profits flow directly to the proprietor’s personal tax return; they are not subject to a second
level of taxation. In others words, profits from the business will not be taxed at the
business level.

The business can be dissolved as easily and informally as it was begun.
These advantages account for the widespread adoption of the sole proprietorship in the India.
Any person who wants to set up shop and begin dealing with customers can get right to it, in
most cases without the intervention of government bureaucrats or lawyers.

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