Computation of Income and Tax Liability

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Income Tax Department
Ministry of Finance, Government of India

Computation of Income and Tax Liability

This chapter outlines the statutory procedure for determining the total income and tax liability of a taxpayer under the Income-tax Act, 1961. The process broadly involves three stages: ascertaining the residential status and category of the assessee, computation of total income, and computation of tax liability.

Residential Status and Category of Taxpayer

Total income is determined with reference to the assessee’s category as defined under section 2(31), and his residential status in India. The scope of income taxable in India varies depending on whether the assessee is a resident, not ordinarily resident, or non-resident. While residents are taxed on global income, non-residents are taxed only on income received, deemed to be received, or accruing or arising in India.

Computation of Total Income

The process of computing total income includes the following sequential steps:

Calculation of income under five heads: Salaries, House Property, Profits and Gains from Business or Profession, Capital Gains, and Other Sources.
Clubbing of the income of another person, where applicable under Chapter V.
Set-off and carry forward of losses as per Chapter VI, including intra-head and inter-head adjustments.
Deduction of eligible amounts under Chapter VI-A from the gross total income.
Determination of total income, bifurcated into normal income (taxed at applicable slab or standard rates) and special income (taxed at special rates).
Aggregation of agricultural income for rate purposes, though it remains exempt under section 10(1).

Computation of Tax Liability

Tax is calculated on total income, segregating normal and special income. In case of domestic companies, concessional tax regimes under sections 115BA, 115BAA or 115BAB may be opted. Minimum Alternate Tax (MAT) provisions apply where tax on book profits exceeds tax on total income, except for companies under sections 115BAA or 115BAB.

For non-corporate assessees, normal income is taxed at applicable rates or as per the optional regime under section 115BAC (for individuals, HUFs, AOPs, BOIs, and AJPs) or section 115BAD/115BAE (for co-operative societies). The Alternate Minimum Tax (AMT) provisions apply to non-company assesses but are inapplicable to those opting for the concessional tax regime under sections 115BAC, 115BAD, or 115BAE.

Final tax liability is adjusted for surcharge, cess, MAT/AMT credit, relief under section 89, and foreign tax credit. Taxes already paid (advance tax, TDS, TCS, self-assessment tax) are reduced from the gross liability to determine the tax payable or refund due. Interest and late fees, if applicable, are added to the net liability.

Taxation under Section 115BA for Certain Domestic Manufacturing Companies

Section 115BA of the Income-tax Act, 1961 offers a concessional tax regime for specified domestic manufacturing companies subject to conditions.

Eligibility Criteria

The following conditions must be satisfied to opt for the concessional rate:

The assessee is a domestic company.
The company is set up and registered on or after 01.03.2016.
The company is engaged solely in the manufacturing or production of articles or things and related research or distribution activities.
Total income is computed without claiming specified exemptions or deductions.
No set-off of carried forward losses attributable to such exemptions or deductions is allowed.
Depreciation is claimed as per prescribed rates, with higher rates (above 40%) restricted to 40% [Notification No. SO 3399(E), No.103/2016, dated 07.11.2016].
Exemptions and Deductions Not Permissible

The concessional tax regime applies only if the company foregoes the following exemptions/deductions, among others:

Deductions under section 10AA, 32(1)(iia), 32AD, 33AB, 33ABA, and section 35.
Deductions under section 35AD, 35CCC, 35CCD.
Deductions under Part C of Chapter VI-A, except section 80JJAA.
Tax Rate

Eligible companies opting for this regime are taxed at 25% (plus applicable surcharge and cess) on normal income. Special income is taxed at the rates specified in the relevant provisions (Sections 110 to 115BBJ).

Procedure for Exercising the Option

The option must be exercised by electronically furnishing Form 10-IB on or before the due date for furnishing the first return of income.

Irrevocability and Transition

Once exercised, the option under this section cannot be withdrawn for the same or any other previous year. However, companies may opt to shift to the regime under section 115BAA.

Applicability of MAT

Companies opting for section 115BA are still subject to the provisions of Minimum Alternate Tax (MAT) under section 115JB.

Taxation under Section 115BAA for Domestic Companies

Section 115BAA provides a concessional tax rate for domestic companies, subject to specified conditions.

Eligibility and Conditions

To opt for the concessional rate of 22% (plus 10% surcharge and 4% cess; effective rate 25.17%), the following conditions must be met:

The assessee is a domestic company.
Total income is computed without claiming specified exemptions/deductions.
No set-off of losses or unabsorbed depreciation attributable to such exemptions/deductions is allowed.
Depreciation is claimed in the prescribed manner, with rates above 40% capped at 40% [GSR 610(E), Notification No. 82/2020, dated 01.10.2020].
Specified Exemptions and Deductions to be forgone

The company must forego, inter alia, the following:

Deductions under sections 10AA, 32(1)(iia), 32AD, 33AB, 33ABA, 35(1)(ii)/(iia)/(iii), 35(2AA), 35(2AB), 35AD, 35CCC, 35CCD.
Chapter VI-A deductions (except sections 80JJAA, 80LA(1A), and 80M).
Adjustment to WDV for Additional Depreciation

Where unabsorbed additional depreciation has not been fully claimed, it shall be added to the written down value of the block of assets as on 01.04.2019. This adjustment is allowed only if the option is exercised in AY 2020–21 [Second Proviso to Rule 5(1) inserted via GSR 610(E), Notification No. 82/2020].

Amalgamation/Demerger Provisions

Successor companies may carry forward losses/depreciation of predecessor companies under section 72A. However, losses attributable to specified deductions are not eligible for set-off. The same adjustment to WDV for unutilized additional depreciation is permitted in such cases, subject to conditions.

Procedure to Opt

The option must be exercised by furnishing Form No. 10-IC electronically (using digital signature or EVC) on or before the due date for filing the return of income. This can be done in any assessment year.

Irrevocability and Non-Compliance

Once exercised, the option cannot be withdrawn for the same or any other previous year. Failure to comply with the regime’s conditions in any year results in permanent loss of eligibility.

Switching from Section 115BAB

If a company becomes ineligible under section 115BAB, it may opt for the regime under section 115BAA.

Exemption from MAT

Companies opting under this section are not subject to MAT under section 115JB. However, any MAT credit under section 115JAA lapses upon opting for this regime.

As per Circular No. 29/2019 [F. No. 142/20/2019-TPL, dated 02.10.2019], there is no fixed timeline to opt for this regime provided the option is exercised before the due date u/s 139(1) of the year for which it is first claimed. A company may choose to exercise the option after utilizing available MAT credit or setting off carried forward losses.

Section 115BAB – Tax on Income of New Manufacturing Domestic Companies

Section 115BAB, introduced by the Taxation Laws (Amendment) Ordinance, 2019, provides an optional concessional tax regime for new domestic manufacturing companies incorporated on or after 01.10.2019. This section is applicable from the Assessment Year 2020-21, subject to the satisfaction of specified conditions.

Eligible Assessee

Only domestic companies incorporated on or after 01.10.2019 and engaged solely in manufacturing or production (including electricity generation), research in relation to, or distribution of manufactured goods, can opt for this regime. They must commence manufacturing on or before 31.03.2024.

Ineligible Activities

The following businesses are excluded: development of software, mining, marble conversion, gas bottling, book printing, film production, or any business as may be notified.

Conditions for Eligibility
The company should not be formed by splitting up or reconstruction of an existing business (except under section 33B).
It should not use previously used plant and machinery, subject to specified exceptions (not exceeding 20% of the total value, or imported and unused in India).
It should not use buildings earlier used as hotels or convention centres, claiming deduction under section 80-ID.
Computation of Income as

Income must be computed without claiming specified deductions or incentives, including but not limited to:

Deductions under sections 10AA, 32(1)(iia), 32AD, 33AB, 33ABA, and section 35, Section 35AD, 35CCC, 35CCD.
All deductions under Chapter VI-A, except under sections 80JJAA and 80M).
Depreciation

Depreciation is to be computed as per the prescribed rules. The depreciation rate for any block of assets exceeding 40% shall be restricted to 40% [ Rule 5(1), as amended via Notification No. 82/2020 dated 01.10.2020].

Manner of Opting

The option must be exercised electronically in Form 10-ID on or before the due date of furnishing the first return of income. Once exercised, it cannot be withdrawn.

Tax Rates Applicable
Income from manufacturing: 15%
Income from non-manufacturing: 22%
Short-term capital gains on depreciable assets: 15%
Other short-term capital gains: 22%
Excess profits from arranged affairs: 30%
Special incomes: as per respective provisions
Surcharge at 10% and health and education cess at 4% shall apply on the tax amount.
Effect of Amalgamation/Demerger

In case of amalgamation/demerger, the successor company can set off carried forward losses/depreciation of the predecessor only if not attributable to deductions disallowed under this section. The successor must satisfy all conditions to remain eligible.

Non-Compliance Consequences

If any condition under the regime is violated, the option becomes invalid for that and all future years. The company’s income shall then be computed as if the option had never been exercised.

Applicability of MAT

Companies opting for this regime are exempt from Minimum Alternate Tax (MAT) under section 115JB.

Anti-Avoidance Provision

If business transactions with related persons result in more than ordinary profits, the Assessing Officer may re-compute profits on a reasonable basis or with reference to the arm’s length price, and such excess profits shall be taxed at 30%.

New Tax Regime for Individual, HUF, AOP, BOI or AJP [Section 115BAC]

Section 115BAC, introduced by the Finance Act, 2020 and amended by the Finance Act, 2023, provides a concessional tax regime for individuals, HUFs, AOPs, BOIs, and AJPs. From Assessment Year (AY) 2024–25 onwards, this regime is the default tax regime.

Eligible Persons

The new tax regime applies to:

Individual
Hindu Undivided Family (HUF)
Association of Persons (AOP) (other than a co-operative society)
Body of Individuals (BOI)
Artificial Juridical Person (AJP)
Conditions for Availing the Regime

To opt for this regime, income must be computed:

Without specified exemptions and deductions.
Without set-off of brought forward loss/depreciation attributable to such exemptions/deductions.
Without set-off of loss under “Income from house property”.
After claiming depreciation at prescribed rates (max. 40%).
Without exemptions/deductions under any other law.
Disallowed Exemptions/Deductions

Taxpayers must forego, among others, the following:

Exemptions under Sections 10(5), 10(13A), 10(14), 10(17), 10(32), 10AA.
Deductions under Sections 16(ii), 16(iii), 24(b), 32(1)(iia), 32AD, 33AB, 33ABA, 35, 35AD, 35CCC.
Chapter VI-A deductions (Sections 80C to 80U), except 80JJAA, 80CCD, 80CCH(2), and 80LA(1A).
Permitted Deductions/Exemptions for Employees
Certain allowances under Rule 2BB (travel, transfer, conveyance, etc.).
Transport allowance for specified disabled employees.
Deduction for employer’s contributions to NPS [Section 80CCD] and
Deduction for employer’s contributions to Agniveer Corpus Fund [Section 80CCH(2)].
No exemption for free food and beverages via paid vouchers.
Tax Rates Under the New Regime
For AY 2025–26:

Total Income (Rs)	Rate
Upto 3,00,000	Nil
From 3,00,001 to 7,00,000	5%
From 7,00,001 to 10,00,000	10%
From 10,00,001 to 12,00,000	15%
From 12,00,001 to 15,00,000	20%
Above 15,00,000	30%

For AY 2026–27:

Total Income (Rs)	Rate
Upto 4,00,000	Nil
From 4,00,001 to 8,00,000	5%
From 8,00,001 to 12,00,000	10%
From 12,00,001 to 16,00,000	15%
From 16,00,001 to 20,00,000	20%
From 20,00,001 to 24,00,000	25%
Above 24,00,000	30%

Rebate Under Section 87A

Resident individuals are entitled to an enhanced rebate under Section 87A. For AY 2026–27 onwards, the rebate threshold is Rs. 12,00,000 with marginal relief, and the maximum rebate amount is Rs. 60,000. No rebate shall be allowed against the tax on any special income.

Surcharge and Cess

Surcharge and Health & Education Cess rates are the same as under the old regime, except surcharge capped at 25% for income exceeding ₹5 crore.

Option to Opt-Out of New Tax Regime
For assessees without business/professional income: Can switch regimes annually by indicating the choice in the return of income under Section 139(1).
For assessees with business/professional income: Must furnish Form 10-IEA within the due date under Section 139(1). Once opted out, re-entry into the new regime is allowed only once unless business income ceases.
Exclusion from AMT Provisions

Assessees under Section 115BAC are not subject to AMT under Section 115JC or AMT credit provisions under Section 115JD.

Adjustment of Unabsorbed Depreciation

Unabsorbed depreciation attributable to disallowed deductions shall lapse. However, if the new regime is opted in AY 2024–25, such depreciation may be added to WDV as of 01-04-2023 per Notification No. 43/2023, dated 21-06-2023.

TDS Intimation by Employees

As per Circular No. 4 of 2023, dated 05-04-2023, employees must inform their tax regime choice annually to employers for TDS purposes. Failure to do so implies a default to the new regime. This intimation does not constitute a formal exercise of the option under Section 115BAC.

Alternate Tax Regime for Co-operative Societies [Section 115BAD]

Section 115BAD, introduced by the Finance Act, 2020, provides a concessional tax regime for resident co-operative societies. Under this regime, the total income is taxable at 22% (plus 10% surcharge), subject to specified conditions, including the forfeiture of certain deductions.

Conditions for Availing the Regime
Income must be computed without claiming specified deductions.
No set-off of brought forward losses or depreciation related to such exemptions/deductions.
Depreciation must be claimed in the prescribed manner, with a cap of 40% on any block of assets.
Disallowed Deductions

The following cannot be claimed under this regime:

Deduction under Section 10AA (units in SEZ)
Additional depreciation under Section 32(1)(iia)
Investment-based deduction in backward areas [Section 32AD]
Deduction under Sections 33AB, 33ABA (tea/coffee/rubber business, petroleum/natural gas)
Scientific research and related donations under Section 35
Capital expenditure deduction for specified businesses [Section 35AD]
Expenditure on agricultural extension [Section 35CCC]
Deductions under Chapter VI-A, except under Sections 80JJAA and 80LA(1A)
Tax Rate and Surcharge
Flat income-tax rate of 22%
Surcharge at 10% of income tax, irrespective of income level
Procedure to Opt

File Form 10-IF electronically, on or before the due date for filing the return of income under Section 139(1). The option can be exercised from any assessment year starting on or after 01.04.2021.

Irrevocability and Invalidity

Once opted, the co-operative society cannot withdraw from the regime in any subsequent year. If conditions are violated in any year, the option becomes invalid for that and subsequent years, and normal provisions of the Act shall apply

Exclusion from AMT Provisions

Sections 115JC (AMT) and 115JD (AMT credit) do not apply to co-operative societies opting for Section 115BAD.

Treatment of Unabsorbed Depreciation

Losses or depreciation from earlier years will lapse permanently to the extent attributable to deductions disallowed under this section. However, if the option is exercised in the first year of applicability (i.e., AY 2021–22), unabsorbed depreciation (attributable to additional depreciation) can be added to the WDV of the block of assets as on 01.04.2020. This adjustment is not allowed if the option is not exercised in the first year.

Alternate Tax Regime under Section 115BAE for Manufacturing Co-operative Societies

Section 115BAE, introduced by the Finance Act, 2023, provides a concessional tax regime for resident co-operative societies engaged exclusively in the manufacturing or production of articles or things. This regime is applicable from the assessment year 2024-25, subject to specified conditions.

Eligible Co-operative Societies

To opt for the concessional regime under Section 115BAE, a co-operative society must:

Be resident in India and incorporated on or after 01.04.2023;
Be registered under the Co-operative Societies Act, 1912 or any State Act;
Commence manufacturing or production on or before 31.03.2024;
Be engaged solely in manufacturing or production and related distribution or research (excluding specified non-eligible businesses such as software development, mining, gas bottling, etc.);
Not be formed by splitting up or reconstruction of an existing business; and
Not use previously used machinery, except where the value of such machinery does not exceed 20% of the total plant and machinery, or in case of eligible imported second-hand machinery.
Computation of Total Income

The total income under this regime shall:

Be computed without claiming specified deductions;
Exclude carry forward and set-off of losses or depreciation attributable to such exemptions/deductions; and
Include depreciation calculated as per prescribed rules (maximum 40% for any block of assets as per Notification No. 43/2023 dated 21.06.2023).
Disallowed Deductions

The following deductions are not allowed:

Section 10AA, 32(1)(iia), 33AB, 33ABA, and Section 35;
Section 35AD , 35CCC;
All Chapter VI-A deductions (except Section 80JJAA).
Applicable Tax Rates

The applicable tax rates under Section 115BAE are:

15% on income from manufacturing activities;
22% on income from non-manufacturing activities (with no expenditure deduction);
15% on short-term capital gains from depreciable assets;
22% on other short-term capital gains;
30% on excess profits due to arranged affairs;
Special rates for incomes covered under specific provisions;
A surcharge of 10% and health & education cess of 4% apply.
Procedure to Opt

Eligible co-operative societies must exercise the option in Form 10-IFA electronically, on or before the due date for furnishing the return under Section 139(1) for the relevant previous year. Once exercised, the option applies to all subsequent years and cannot be withdrawn.

Consequences of Non-compliance

If any condition under Section 115BAE is violated in a previous year, the option becomes invalid for that year and all subsequent years. The regular provisions of the Act then apply.

Arranged Business Affairs and Excess Profit

Where profits are deemed excessive due to close connection or business arrangement, the Assessing Officer may re-compute such profits on a reasonable basis or as per arm’s length price (for specified domestic transactions). Excess profits shall be taxed at 30%.

Exemption from AMT

Co-operative societies opting for Section 115BAE are exempt from the Alternative Minimum Tax (AMT). Unutilised AMT credit under Section 115JD shall not be allowed to be carried forward or set off.

Tax rates for Assessment Year 2025-26

Total income of an assessee is taxable either as per applicable normal tax rates or as per special tax rates. The special tax rates have been prescribed in the relevant provisions of the Income-tax Act, while as normal tax rates are prescribed every year under First Schedule of the Finance Act.

In case of Individual/HUF/AOP/BOI/AJP

General Slab Rates

The normal tax rates has been enumerated in below table:

Net income range	Resident Super Senior Citizen	Resident Senior Citizen	Any other Individual/HUF/AOP/BOI/AJP
Up to Rs. 2,50,000	Nil	Nil	Nil
Rs. 2,50,001- Rs. 3,00,000	Nil	Nil	5%
Rs. 3,00,001- Rs. 5,00,000	Nil	5%	5%
Rs. 5,00,001- Rs. 10,00,000	20%	20%	20%
Above Rs. 10,00,000	30%	30%	30%

Concessional Tax Regimes

Section 115BAC provides for a concessional tax regime for individuals, HUFs, AOPs (other than co-operative societies), BOIs, and AJPs. This provision provides an altogether new tax slab wherein the tax rates have been significantly reduced. However, to avail the benefit of this tax regime, the assessee has to forgo specified exemptions and deductions.

Rebate under Section 87A

Only resident individuals are eligible to claim rebate under Section 87A. The availability and amount of rebate depend on the tax regime opted for by the assessee.

Under Normal Tax Regime – A resident individual whose total income does not exceed 5,00,000 is eligible for a rebate of up to Rs. 12,500. The rebate is limited to the amount of tax payable (excluding cess).
Under New Tax Regime [Section 115BAC(1A)] –
For Assessment Year 2025–26, a resident individual opting for the new regime is eligible for a rebate of up to 25,000, provided the total income does not exceed Rs. 7,00,000.
If the total income slightly exceeds 7,00,000, a marginal rebate is available. The rebate equals the excess of tax liability over the income exceeding Rs. 7,00,000. This ensures the additional tax does not surpass the excess income.
The formula is: Rebate = Tax on total income – (Total income – 7,00,000).
If the result is negative, no rebate is allowed.
Alternate Minimum Tax (AMT)

An assessee is liable to pay Alternate Minimum Tax where tax payable by him, on his total income computed as per normal provisions of the Act, is less than 18.5% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as income of such individual and he shall be liable to pay tax at the rate of 18.5% of such ‘adjusted total income’.

If an assessee has opted for new tax regime, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.

Surcharge

Nature of Income	Range of Total Income
Nature of Income	Up to Rs. 50 lakhs	More than Rs. 50 lakhs but up to Rs. 1 crore	More than Rs. 1 crore but up to Rs. 2 crores	More than Rs. 2 crores but up to Rs. 5 crores	More than Rs. 5 crores
Capital gains covered under Section 111A, 112, 112A or 115AD	Nil	10%	15%	15%	15%
Dividend income (not being dividend income chargeable to tax at special rate under sections 115A, 115AB, 115AC, or 115ACA)	Nil	10%	15%	15%	15%
Unexplained income chargeable to tax under Section 115BBE	25%	25%	25%	25%	25%
Any other income	Nil	10%	15%	25%	37%*

The Finance Act, 2022 has put a cap on the rate of surcharge to 15% in case of an AOP consisting of only companies as its members.

* From the assessment year 2024-25, the surcharge rates on other income for Individuals, HUFs, AOP, BOI or Artificial Juridical Persons opting to pay tax under the new tax regime of Section 115BAC shall not exceed 25%.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of Firm or LLP

Tax rates

A partnership firm (including LLP) is liable to pay tax at the flat rate of 30% of normal taxable income.

Alternate Minimum Tax (AMT)

A partnership firm is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such ‘adjusted total income’.

Surcharge

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of Company

Tax Rates

Income-tax Act allows a domestic company to choose from the following taxation regimes, subject to the fulfilment of prescribed conditions.

Section	Tax Rates
Section 115BA	25%
Section 115BAB	15%-22%
Section 115BAA	22%
First Schedule to Finance Act – total turnover or gross receipts in FY 2022-23 not exceeds Rs. 400 crores	25%
First Schedule to Finance Act – Any other	30%
Foreign Company	35%

Minimum Alternate Tax (MAT)

A company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of ‘book profit’. In such a case the ‘book profit’ is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such ‘book profit’.

The provisions of MAT shall not apply to any income accruing or arising to a company from life insurance business referred to in Section 115B or company exercised the option to pay tax as per Section 115BAA or Section 115BAB. Further, the provisions of MAT do not apply in case of foreign companies if it does not have permanent establishment (PE) in India or opts for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB.

Surcharge

Company	Range of Total Income
Company	Rs. 1 crore or less	Above Rs. 1 crore but up to Rs. 10 crore	Above Rs. 10 crore
Domestic Company opting for section 115BA	Nil	7%	12%
Domestic Company opting for section 115BAA	10%	10%	10%
Domestic Company opting for section 115BAB	10%	10%	10%
Any other domestic company	Nil	7%	12%
Foreign company	Nil	2%	5%
Unexplained income chargeable to tax under Section 115BBE	25%	25%	25%

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of local authority

Tax Rates

A local authority is liable to pay tax at the flat rate of 30% of normal taxable income.

Alternate Minimum Tax (AMT)

A local authority is liable to pay Alternate Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as the income of local authority and it shall be liable to pay tax at the rate of 18.5% of such ‘adjusted total income’.

Surcharge

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of Co-op. Society

Normal Tax Rates

A co-operative society is liable to pay tax as per the following rates:

Income range	Tax rates
Up to Rs. 10,000	10%
Rs. 10,000- Rs. 20,000	20%
Above Rs. 20,000	30%

Alternate Tax Regime

Income-tax Act allows a co-operative society to choose from the following alternative taxation regime subject to fulfilment of prescribed conditions:

Section	Tax Rates
Section 115BAE	15%-22%
Section 115BAD	22%

Alternate Minimum Tax (AMT)

A co-op. society is liable to pay Alternate Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as the income of co-op. society and it shall be liable to pay tax at the rate of 15% of such ‘adjusted total income’.

If a co-operative society has exercised the option of Section 115BAD or Section 115BAE, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.

Surcharge

In the case of co-operative societies (not opting for the alternative tax regime under section 115BAD or 115BAE), the tax calculated on the total income shall be further increased by the surcharge depending upon the total income of the co-operative society. For Assessment Year 2025-26, there are two rates of surcharge – 7% (Total income above Rs. 1 crore but up to Rs. 10 crore) and 12% (Total income above Rs. 10 crore).

In case where a co-operative society is eligible and opt for the alternative tax regime under section 115BAD or 115BAE, the surcharge is levied at a rate of 10% on the amount of income-tax irrespective of the total income of such co-operative society.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Special Tax Rates under the Income-tax Act

In case of capital gains

Section	Assessee	Tax Rate (if transfer before 23-07-2024)	Tax Rate (if transfer on or after 23-07-2024)
Section 111A	Any Person	15%	20%
Section 112	Any person	10%-20%	12.5%
Section 112A	Any Person	10%	12.5%
Section 115AB	Overseas financial organization or offshore funds	10%	12.5%
Section 115AC	Non-resident	10%	12.5%
Section 115ACA	Resident Individual	10%	12.5%
Section 115AD	Foreign Institutional Investors or Specified fund	10%-30%	12.5%-30%
Section 115E	Non-resident Indian	10%	12.5%
Section 115BBH	Any Person	30%	30%

In case of interest income

Section	Assessee	Tax Rate
Section 115A	Non-resident or Foreign Co.	4%-20%
Section 115AC	Non-resident	10%
Section 115AD	Foreign Institutional Investor	5%
Section 115AD	Foreign Institutional Investor	20%
Section 115AD	Specified fund	10%

In case of dividend income

Section	Assessee	Tax Rate
Section 115A	Non-resident or foreign co.	10%-20%
Section 115AC	Non-resident	10%
Section 115ACA	Resident Individual	10%
Section 115AD	Foreign Institutional investor	20%
Section 115AD	Specified fund	10%
Section 115AB	Overseas financial organization or offshore funds	10%

In case of income from securities

Section	Assessee	Tax Rate
Section 115A	Non-resident or Foreign Co.	20%
Section 115AB	Overseas financial organization or offshore funds	10%
Section 115AD	Foreign Institutional investor	20%
Section 115AD	Specified fund	10%
Section 115E	Non-resident Indian	20%

In case of other incomes

Section	Assessee	Tax Rate
Section 115A	Non-resident or Foreign Co.	20%
Section 115B	Assessee engaged in life insurance business	12.5%
Section 115BB	Any person	30%
Section 115BBA	Non-resident sportsman, sport association or entertainer	20%
Section 115BBE	Any person	60%
Section 115BBF	Resident person	10%
Section 115BBG	Any person	10%
Section 115BBH	Any Person	30%
Section 115BBJ	Any Person	30%

In case of trusts or investment funds

Section	Assessee	Tax Rate
Section 115BBC	Any person	30%
Section 115BBI	Trust or institutions	30%
Section 115TD	Trust or institutions	MMR
Section 115UA	Business Trust	MMR
Section 115UB	Investment fund	30%-35% or MMR
Section 161	Trust	MMR
Section 164	Private discretionary trust	MMR
Section 164A	Oral trust	MMR
Section 167B	AOP or BOI	Normal Slab Rate or MMR or Higher rate on income attributable to such member

Marginal Relief under the Income-tax Act

Marginal relief is allowed when taxable income is beyond the threshold limit after which surcharge is payable, but the net income in excess of the threshold limit is less than the amount of surcharge.

The marginal relief shall be calculated in the following steps:

Step 1: Calculate actual total income (aggregate of normal and special income)

Step 2: Calculate tax on total income and surcharge thereon

Step 3: Calculate deemed total income – The threshold limit prescribed for applicability of relevant rate of surcharge is deemed as total income of an assessee.

Step 4: Calculate tax on deemed total income and surcharge thereon (if any)

Step 5: Find out the difference in income (Step 1 – Step 3)

Step 6: Find out the difference in tax (Step 2 – Step 4)

Step 7: Compute marginal relief (Step 6 – Step 5)

The marginal relief so computed is reduced from the amount of surcharge computed in respect of actual total income.

Tax rates for Assessment Year 2026-27

In case of Individual/HUF/AOP/BOI/AJP

General Slab Rates

The normal tax rates has been enumerated in below table:

Net income range	Resident Super Senior Citizen	Resident Senior Citizen	Any other Individual/HUF/AOP/BOI/AJP
Up to Rs. 2,50,000	Nil	Nil	Nil
Rs. 2,50,001- Rs. 3,00,000	Nil	Nil	5%
Rs. 3,00,001- Rs. 5,00,000	Nil	5%	5%
Rs. 5,00,001- Rs. 10,00,000	20%	20%	20%
Above Rs. 10,00,000	30%	30%	30%

Concessional Tax Regimes

Rebate under Section 87A

Only resident individuals are eligible to claim rebate under Section 87A. The availability and amount of rebate depend on the tax regime opted for by the assessee.

Under Normal Tax Regime – A resident individual whose total income does not exceed 5,00,000 is eligible for a rebate of up to Rs. 12,500. The rebate is limited to the amount of tax payable (excluding cess).
Under New Tax Regime [Section 115BAC(1A)] –
For Assessment Year 2026–27, a resident individual opting for the new regime is eligible for a rebate of up to 60,000, provided the total income does not exceed Rs. 12,00,000.
If the total income slightly exceeds 12,00,000, a marginal rebate is available. The rebate equals the excess of tax liability over the income exceeding Rs. 12,00,000. This ensures the additional tax does not surpass the excess income.
The formula is: Rebate = Tax on total income – (Total income – 12,00,000).
If the result is negative, no rebate is allowed.
Rebate is not allowed against the tax on any special income.

Alternate Minimum Tax (AMT)

If an assessee has opted for new tax regime, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.

Surcharge

Nature of Income	Range of Total Income
Nature of Income	Up to Rs. 50 lakhs	More than Rs. 50 lakhs but up to Rs. 1 crore	More than Rs. 1 crore but up to Rs. 2 crores	More than Rs. 2 crores but up to Rs. 5 crores	More than Rs. 5 crores
Capital gains covered under Section 111A, 112, 112A or 115AD	Nil	10%	15%	15%	15%
Dividend income (not being dividend income chargeable to tax at special rate under sections 115A, 115AB, 115AC, or 115ACA)	Nil	10%	15%	15%	15%
Unexplained income chargeable to tax under Section 115BBE	25%	25%	25%	25%	25%
Any other income	Nil	10%	15%	25%	37%*

The Finance Act, 2022 has put a cap on the rate of surcharge to 15% in case of an AOP consisting of only companies as its members.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of Firm or LLP

Tax rates

A partnership firm (including LLP) is liable to pay tax at the flat rate of 30% of normal taxable income.

Alternate Minimum Tax (AMT)

Surcharge

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of Company

Tax Rates

Income-tax Act allows a domestic company to choose from the following taxation regime subject to fulfilment of prescribed conditions.

Section	Tax Rates
Section 115BA	25%
Section 115BAB	15%-22%
Section 115BAA	22%
First Schedule to Finance Act – total turnover or gross receipts in FY 2023-24 does not exceed Rs. 400 crores	25%
First Schedule to the Finance Act – Any other	30%
Foreign Company	35%

Minimum Alternate Tax (MAT)

Surcharge

Company	Range of Total Income
Company	Rs. 1 crore or less	Above Rs. 1 crore but up to Rs. 10 crore	Above Rs. 10 crore
Domestic Company opting for section 115BA	Nil	7%	12%
Domestic Company opting for section 115BAA	10%	10%	10%
Domestic Company opting for section 115BAB	10%	10%	10%
Any other domestic company	Nil	7%	12%
Foreign company	Nil	2%	5%
Unexplained income chargeable to tax under Section 115BBE	25%	25%	25%

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of local authority

Tax Rates

A local authority is liable to pay tax at the flat rate of 30% of normal taxable income.

Alternate Minimum Tax (AMT)

Surcharge

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees.

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

In case of Co-op. Society

Normal Tax Rates

A co-operative society is liable to pay tax as per the following rates:

Income range	Tax rates
Up to Rs. 10,000	10%
Rs. 10,000- Rs. 20,000	20%
Above Rs. 20,000	30%

Alternate Tax Regime

Income-tax Act allows a co-operative society to choose from the following alternative taxation regime subject to fulfilment of prescribed conditions:

Section	Tax Rates
Section 115BAE	15%-22%
Section 115BAD	22%

Alternate Minimum Tax (AMT)

Surcharge

Health & Education Cess

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Special Tax Rates under the Income-tax Act

In case of capital gains

Section	Assessee	Tax Rate
Section 111A	Any Person	20%
Section 112	Any person	12.5%
Section 112A	Any Person	12.5%
Section 115AB	Overseas financial organization or offshore funds	12.5%
Section 115AC	Non-resident	12.5%
Section 115ACA	Resident Individual	12.5%
Section 115AD	Foreign Institutional Investors or Specified fund	12.5%-30%
Section 115E	Non-resident Indian	12.5%
Section 115BBH	Any Person	30%

In case of interest income

Section	Assessee	Tax Rate
Section 115A	Non-resident or Foreign Co.	4%-20%
Section 115AC	Non-resident	10%
Section 115AD	Foreign Institutional Investor	5%
Section 115AD	Foreign Institutional Investor	20%
Section 115AD	Specified fund	10%

In case of dividend income

Section	Assessee	Tax Rate
Section 115A	Non-resident or foreign co.	10%-20%
Section 115AC	Non-resident	10%
Section 115ACA	Resident Individual	10%
Section 115AD	Foreign Institutional investor	20%
Section 115AD	Specified fund	10%
Section 115AB	Overseas financial organization or offshore funds	10%

In case of income from securities

Section	Assessee	Tax Rate
Section 115A	Non-resident or Foreign Co.	20%
Section 115AB	Overseas financial organization or offshore funds	10%
Section 115AD	Foreign Institutional investor	20%
Section 115AD	Specified fund	10%
Section 115E	Non-resident Indian	20%

In case of other incomes

Section	Assessee	Tax Rate
Section 115A	Non-resident or Foreign Co.	20%
Section 115B	Assessee engaged in life insurance business	12.5%
Section 115BB	Any person	30%
Section 115BBA	Non-resident sportsman, sport association or entertainer	20%
Section 115BBE	Any person	60%
Section 115BBF	Resident person	10%
Section 115BBG	Any person	10%
Section 115BBH	Any Person	30%
Section 115BBJ	Any Person	30%

In case of trusts or investment funds

Section	Assessee	Tax Rate
Section 115BBC	Any person	30%
Section 115BBI	Trust or institutions	30%
Section 115TD	Trust or institutions	MMR
Section 115UA	Business Trust	MMR
Section 115UB	Investment fund	30%-35% or MMR
Section 161	Trust	MMR
Section 164	Private discretionary trust	MMR
Section 164A	Oral trust	MMR
Section 167B	AOP or BOI	Normal Slab Rate or MMR or Higher rate on income attributable to such member

Marginal Relief under the Income-tax Act

The marginal relief shall be calculated in the following steps:

Step 1: Calculate actual total income (aggregate of normal and special income)

Step 2: Calculate tax on total income and surcharge thereon

Step 3: Calculate deemed total income – The threshold limit prescribed for applicability of relevant rate of surcharge is deemed as total income of an assessee.

Step 4: Calculate tax on deemed total income and surcharge thereon (if any)

Step 5: Find out the difference in income (Step 1 – Step 3)

Step 6: Find out the difference in tax (Step 2 – Step 4)

Step 7: Compute marginal relief (Step 6 – Step 5)

The marginal relief so computed is reduced from the amount of surcharge computed in respect of actual total income.

Last reviewed and updated on: 31-Mar-2026

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Income-tax Rules, 1962

Rule – 5G

⁴⁰[Option form for taxation of income from patent under section 115BBF.

5G. (1) For the purposes of exercising the option for taxation of income by way of royalty in respect of a patent developed and registered in India, by an eligible assessee under section 115BBF, the eligible assessee shall furnish Form No. 3CFA duly verified in the manner indicated therein, and the same shall be furnished by the eligible assessee in the following manner, namely:—

i. electronically under digital signature; or

ii. electronically through electronic verification code.

(2) The form referred in sub-rule (1) shall be complete in all respects and furnished on or before the due date specified in Explanation 2 below sub-section (1) of section 139 for furnishing the return of income for the relevant assessment year, in case the option is exercised for that assessment year.

(3) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing and verification of the Form referred in sub-rule (1).]

Rule – 17CA

Functions of electoral trusts.

17CA. (1) The functions of an electoral trust referred to in section 13B shall be as provided in this rule.

(2) The electoral trust may receive voluntary contributions from—

a. an individual who is a citizen of India;

b. a company which is registered in India; and

c. a firm or Hindu undivided family or an Association of persons or a body of individuals, resident in India.

(3) A receipt indicating the following shall be issued by the trust immediately on receipt of any contribution indicating the following:—

a. name and address of the contributor;

b. Permanent account number of the contributor or passport number in the case of a citizen who is not a resident;

c. amount and mode of contribution including name and branch of the Bank and date of receipt of such contribution;

d. name of the electoral trust;

e. Permanent account number of the electoral trust;

f. date and number of approval by the prescribed authority; and

g. name and designation of the person issuing the receipt.(4) The electoral trust shall not accept contributions—

a. from an individual who is not a citizen of India or from any foreign entity whether incorporated or not; ⁶²[***]v

b. from any other electoral trust which has been registered as a company under section 25 of the Companies Act, 1956 (1 of 1956) and approved as an electoral trust under the Electoral Trusts Scheme, 2013;

c. from a Government Company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013); and

d. from a foreign source as defined in clause (j) of section 2 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).]

(5) The electoral trust shall accept contributions only by way of an account payee cheque drawn on a bank or account payee bank draft or by electronic transfer to its bank account and shall not accept any contribution in cash.

(6) The electoral trust shall not accept any contribution without the permanent account number of the contributor, who is a resident and the passport number in the case of a citizen of India, who is not a resident.

(7) A political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall be an eligible political party and an electoral trust shall distribute funds only to the eligible political parties.

(8) (i) The electoral trust may, for the purposes of managing its affairs, spend up to five per cent of the total contributions received in a year subject to an aggregate limit of rupees five hundred thousand in the first year of incorporation and rupees three hundred thousand in subsequent years;

(ii) the total contributions received in any financial year along with the surplus from any earlier financial year, if any, as reduced by the amount spent on managing its affairs, shall be the distributable contributions for the financial year;

(iii) an electoral trust shall be required to distribute the distributable contributions received in a financial year, referred to in item (ii), to the eligible political parties before the 31st day of March of the said financial year, subject to the condition that at least ninety five per cent of the total contributions received during the financial year along with the surplus brought forward from earlier financial year, if any, are distributed.

(9) The trust shall obtain a receipt from the eligible political party indicating the name of the political party, its permanent account number, registration number, amount of fund received from the trust, date of the receipt and name and designation of person signing such receipt.

(10) The electoral trust shall not utilize any contributions for the direct or indirect benefit of the members or contributors, or for any of the following persons, namely:—

a. the members (including members of its Executive Committee, Governing Committee or Board of Directors) of the electoral trust; (b)

b. any relative of such Members;

c. where such member or contributor is a Hindu undivided family, a member of that Hindu undivided family;

d. any person who has made a contribution to the trust;

e. eany person referred to in sub-section (3) of section 13 of the Act; and(f)
any concern in which any of the persons referred to in clauses (a), (b), (c), (d) and (e) has a substantial interest.(11) (i) An electoral trust shall keep and maintain such books of account and other documents in respect of its receipts, distributions and expenditure as may enable the computation of its total income in accordance with the provisions of the Act;

(ii) The electoral trust shall also maintain a list of persons from whom contributions have been received and to whom the same have been distributed, containing the name, address and permanent account number of each such person along with the details of the amount and mode of its payment including the name and branch of the bank.

(12) Every electoral trust shall get its accounts audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and furnish the audit report in Form No. 10BC along with particulars forming part of its Annexure, to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the electoral trust, on or before the due date specified for furnishing the return of income by a company under section 139.

(13) An electoral trust shall maintain a regular record of proceedings of all meetings and decisions taken therein.

(14) Every electoral trust shall furnish a certified copy of list of contributors and a list of political parties, to whom sums were distributed in the manner prescribed in sub-rule (8), to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, every year along with the audit report as stipulated under sub- rule (12).

(15) Any change in the shareholders, subsequent to the approval granted under the Electoral Trusts Scheme, 2013 shall be intimated to the Board within thirty days of such change.]

Rule – 21AD

⁷²[Exercise of option under sub-section (4) of section 115BA.

21AD. (1) The option to be exercised in accordance with the provisions of sub-section (4) of section 115BA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2017, shall be in Form No. 10-IB.

(2) The option in Form No. 10-IB referred to in sub-rule (1) shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—

i. specify the procedure for filing of Form referred to in sub-rule (2);

ii. specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for purpose of verification of the person furnishing the form referred to in the said sub- rule; and

iii. be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to Form so furnished.]

Rule – 21AE

⁷³[Exercise of option under sub-section (5) of section 115BAA.

21AE. (1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-IC.

(2) The option in Form No. 10-IC shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—

i. specify the procedure for filing of Form No. 10-IC;

ii. specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and

iii. be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.

Rule – 21AF

Exercise of option under sub-section (7) of section 115BAB.

21AF. (1) The option to be exercised in accordance with the provisions of sub-section (7) of section 115BAB by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-ID.

(2) The option in Form No. 10-ID shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—

i. specify the procedure for filing of Form No. 10-ID;

ii. specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and

iii. be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.]

Rule – 21AG

⁷⁴[Exercise of option under sub-section (5) of section 115BAC.

21AG. (1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAC by a person, being an individual or Hindu undivided family, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall be in Form No. 10-IE.

(2) The option in Form No. 10-IE shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall,—

i. specify the procedure for filing of Form No. 10-IE;

ii. specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and

iii. be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.

Rule – 21AH

Exercise of option under sub-section (5) of section 115BAD.

21AH. (1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAD by a person, being a co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall be in Form No. 10-IF.

(2) The option in Form No. 10-IF shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall,—

i. specify the procedure for filing of Form No. 10-IF;

ii. specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and

iii. be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.

Income Tax Forms

Page Contents

Form No. : 1
Form No. : 2
Form No. : 2A
Form No. : 2B
Form No. : 2C
Form No. : 2E
Form No. : 3
Form No. : 3AA
Form No. : 3AAA
Form No. : 3AB

Form No. : 1

¹[Appendix IV

FORM NO. 1

[See rule 11UE (1)]

Undertaking under sub-rule (1) of rule 11UE of the Income-tax Rules, 1962

To,
Principal Commissioner/Commission
………………….. ………………………. ……………………

Sir/Madam,

I …………………………………….. (name in block letters) son/daughter of …………………………………………. designation ………………………………….. and nationality …………………………………. and related passport number………………………………….. (hereinafter referred to as “signatory”) having Permanent Account Number/Aadhaar Number (see Note 1) …………………………………………………………………. on behalf of ………………………………………… (name of the declarant) having Permanent Account Number/Aadhaar number/Tax Deduction Account Number (see Note 2) ……………………………………….. and being duly authorised and competent to represent the declarant in this regard pursuant to Board Resolution and legal authorisation (see Note 3), as the case may be ,hereby declare as follows:

a. That specified orders have been passed or made in respect of income accruing or arising through or from the transfer of an asset or a capital asset situate in India in consequence of the transfer of a share or interest in a company or entity registered or incorporated outside India made before the 28th day of May, 2012 and particulars of such specified orders are provided in Part A of the Annexure.

b. The declarant has (strike off the options that are not applicable),

i. not filed any appeal or application or petition or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings constituted under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant orders, and hereby undertakes that it shall not file any appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such relevant order or orders are provided in Part B of the Annexure;

ii. filed one or more appeals or applications or petitions or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant orders and has irrevocably withdrawn, on a with prejudice basis, all such appeals or applications or petitions or proceeding and evidence thereof is furnished herewith and hereby undertakes that it shall not file any appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such appeals or applications or petitions or proceeding filed and irrevocably withdrawn with prejudice by the declarant, are provided in Part C of the Annexure;

iii. filed one or more appeals or applications or petitions or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant order or orders and all the appeals or applications or petitions or proceeding filed by the declarant have been disposed of and no further appeal or application or petition or proceeding has been filed by the declarant and evidence thereof is furnished herewith and hereby undertake that it shall not file any appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such appeals or applications or petitions or proceeding filed and disposed of, are provided in Part C of the Annexure;

iv. filed appeals or applications or petitions or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant orders and one or more of such appeals or applications or petitions or proceeding are pending as on the date of this undertaking and hereby undertakes to irrevocably withdraw, terminate and discontinue any and all such appeals or applications or petitions or proceeding that are pending as on the date of signing this undertaking, on a with prejudice basis, in accordance with clause (e) below. The declarant further undertakes that it shall not file any such appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such pending appeals or applications or petitions or proceeding filed by the declarant and their status as on the date of this undertaking, are provided in Part D of the Annexure;

c. The declarant has (strike off the options that are not applicable),

i. not initiated any proceeding for arbitration, conciliation or mediation, and no notice has been given thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant orders, and hereby undertakes that it shall not initiate any such arbitration, conciliation or mediation in future. Particulars of such relevant order or orders are provided in Part B of the Annexure;

ii. initiated proceeding for arbitration, conciliation or mediation, or notices thereof has been given, under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant order or orders and has irrevocably, on a with prejudice basis, withdrawn any such proceeding for arbitration, conciliation or mediation, and notices given thereof and evidence thereof is furnished herewith. The declarant hereby undertakes that it shall not reopen in future any such proceeding or initiate or file any such arbitration, conciliation or mediation in future arising out of or in connection with the relevant order or orders. Particulars of such proceeding for arbitration, conciliation or mediation and notices given thereof, initiated and irrevocably withdrawn with prejudice by the declarant, are provided in Part E of the Annexure;

iii. initiated proceeding for arbitration, conciliation or mediation, or notices thereof has been given, under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant order or orders and all the arbitration, conciliation or mediation filed by the declarant have been disposed of and no further proceeding has been initiated by the declarant and evidence thereof is furnished herewith. The declarant hereby undertakes that it shall not reopen in future any such proceeding or initiate or file any such arbitration, conciliation or mediation in future arising out of or in connection with the relevant order or orders. Particulars of such proceeding for arbitration, conciliation or mediation and notices given thereof, initiated and disposed of, are provided in Part E of the Annexure;

iv. initiated proceeding for arbitration, conciliation or mediation, or notices thereof has been given, under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant order or orders and one or more of such proceeding or notices are pending on the date of undertaking and hereby undertakes to irrevocably withdraw, terminate and discontinue any and all such proceeding or notices for arbitration, conciliation or mediation that are pending as on the date of signing this undertaking, on a with prejudice basis, in accordance with clause (e) below. Particulars of such pending proceeding and notices filed by the declarant are provided in Part F of the Annexure. The declarant hereby further undertakes that it shall not initiate any such arbitration, conciliation or mediation in future arising out of or in connection with the relevant order or orders;

v. received or got any awards, orders, judgments or any other reliefs issued in favour of the declarant, arising out of or in any way relating to the imposition of tax, interest and penalty based on the relevant order or orders, under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise and hereby undertakes to irrevocably waive any right to seek or pursue any claim or costs or declaratory relief in relation to or arising out of such awards, orders or judgments or any other relief that may have been ordered, issued or passed against India and any Indian affiliate, whether it is in proceeding initiated by the declarant or by India and any Indian affiliate. The declarant also undertakes to irrevocably waive any right to seek or pursue any claim for costs or relief in respect of any proceeding initiated by the Republic of India to set aside such award, order or judgment or any other relief issued in favour of the declarant. The declarant hereby undertakes that it shall not initiate or file any such arbitration, conciliation or mediation in future. Particulars of such awards, orders, judgment or any other relief are provided in Part G of the Annexure;

.d. The declarant has (strike off the options that are not applicable),

i. not initiated any proceeding to enforce or pursue attachments in connection with any awards, orders, judgments, any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the declarant as referred in clause (c) of this undertaking either against the Republic of India and any Indian affiliate, and hereby undertakes that it shall not initiate any such proceeding in future. Particulars of such award, order or judgment are provided in Part B of the Annexure;

ii. initiated proceeding to enforce or pursue attachments in connection with any awards, orders, judgments or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the declarant, as referred to in clause (c) of this undertaking against the Republic of India and any Indian affiliate. The declarant has irrevocably and with prejudice withdrawn or discontinued any such proceeding and hereby undertakes that it shall not reopen any such proceeding in future or file or initiate fresh proceeding to enforce or pursue attachments and evidence thereof is furnished herewith. Particulars of such proceeding, initiated and withdrawn or discontinued by the declarant, are provided in Part H of the Annexure;

iii. initiated proceeding to enforce or pursue attachments in connection with any awards, orders, judgments or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the declarant, as referred to in clause (c) of this undertaking against the Republic of India and any Indian affiliate. All such proceeding filed by the declarant have been disposed of and no further proceeding has been filed by the declarant and evidence is herewith furnished and hereby undertakes that it shall not reopen any such proceeding in future or file or initiate fresh proceeding to enforce or pursue attachments. Particulars of such proceeding, initiated and disposed of, are provided in Part H of the Annexure;

iv. initiated proceeding to enforce or pursue attachments in connection with any awards, orders, judgments, or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the declarant as referred to in clause (c) of this undertaking, either against the Republic of India and any Indian affiliate and one or more of such proceeding are pending on the date of undertaking and, the declarant has obtained one or more orders from any court or other authority which remain outstanding against India and any Indian Affiliate. The declarant hereby undertakes that it shall not file in future any such proceeding to enforce or pursue attachments regarding any awards, orders, judgments, or any other relief that may have been ordered , issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the declarant as referenced in clause (c) of this undertaking or to enforce the orders from any court or other authority which remain outstanding against Republic of India and any Indian Affiliate. The declarant further undertakes to fully cooperate with the Republic of India or any Indian affiliate which is subject to such outstanding order, in order to set-aside or otherwise nullify any such outstanding order, and irrevocably and with prejudice waives any rights or remedies arising from such outstanding order. Particulars of such proceeding are provided in Part I of the Annexure. The declarant also undertakes to irrevocably withdraw, terminate and discontinue with prejudice any and all such proceeding to enforce or pursue attachments in accordance with clause (e).

e. The declarant hereby undertakes as follows:

i. to irrevocably and with prejudice withdraw, discontinue, terminate and take all necessary steps to irrevocably and with prejudice close the pending proceeding referred in sub-clause (iv) of clause (b), sub-clause (iv) of clause (c), sub-clause (v) of clause (c) and sub-clause (iv) of clause (d) of this undertaking, as well as any other pending proceeding against India or Indian affiliates relating to the relevant order or orders and not referenced in clauses (b), (c) and (d) above, and not to pursue in any way and by any means in future the pending proceeding as referenced in clauses (b), (c), and (d) above, and any other pending proceeding relating to the relevant order or orders not referred in the above clauses and any other fresh proceeding relating to the relevant order or orders. In so acting, declarant shall act in accordance with this undertaking and in full cooperation with the Republic of India;

ii. to irrevocably terminate, release, discharge, and forever irrevocably waive any right, whether direct or indirect, and any claims, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, court’s fees, expenses, damages, judgments, orders, declaratory reliefs and liabilities of whatever kind or nature at law, in equity, or otherwise, whether now known or unknown previously (or in future discovered), suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed, or do exist or which hereafter can, shall or may exist , in relation to any award, order, judgment, or any other relief as referred in clauses (b), (c) and (d) of this undertaking, against the Republic of India and all Indian affiliates, ordered, issued or passed in connection with the relevant order or orders, whether it is in proceeding initiated by the declarant or by Republic of India and any Indian Affiliate. The declarant further undertakes to fully cooperate with the Republic of India or any Indian affiliate which is subject to any outstanding order referenced in clause (d), in order to set-aside or otherwise nullify any such outstanding order, and irrevocably and with prejudice waives any rights or remedies arising from such outstanding order. For the avoidance of doubt, the declarant’s irrevocable waiver includes irrevocable waiver of any right provided by any existing ex parte, provisional, or other kind of court order permitting enforcement or attachment against the Republic of India and any Indian affiliate, in furtherance of any award, order judgment, or any other relief that may have been ordered or issued or passed by any arbitral tribunal as referred in clauses (b), (c) and (d) above. For further avoidance of doubt, the declarant also undertakes to irrevocably waive any right to seek or pursue any claim for costs in respect of any proceeding initiated by Republic of India and any Indian affiliate to set aside such award, order or judgement ordered, issued or passed in favour of the declarant. Such irrevocable waiver includes, but is not limited to, any right under any relevant ex parte order;

iii. to irrevocably waive any right to seek or pursue any claim for costs in respect of any proceeding initiated by the Republic of India to set aside such award, order or judgment, or any other relief issued in favour of the declarant.

f. The declarant specifically represents that all Parts of the Annexure as described in this undertaking are full and complete to the best of its knowledge.

g. The declarant hereby undertakes to irrevocably terminate, release, discharge and forever irrevocably waive any right, whether direct or indirect, and any remedies, claims, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, court’s fees, expenses, damages, judgments, orders, compensation, and liabilities of whatever kind or nature at law, in equity, or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed, or do exist or which hereafter can, shall or may exist, based on pursuit of any remedy or any and all claims, demands, damages, judgments, awards, costs, expenses, compensation or liabilities of any kind (whether asserted or unasserted) in relation to any facts, events, or omissions occurring from the beginning of time to the date of this undertaking and thereafter in future in relation to taxation of said income or relevant order or orders, or any related award, judgment or court order, which may otherwise be available to the declarant under any law for the time being in force, in equity, under any statute or under any agreement entered into by Republic of India with any country or territory outside Republic of India, whether for protection of investment or otherwise , whether it is in proceeding initiated by the declarant or by Republic of India and any Indian affiliate. For the avoidance of doubt, the declarant’s above waiver includes an irrevocable waiver of any claim against India and any Indian Affiliate to costs incurred or interest accrued in relation to the relevant order or orders, or any related ongoing or completed litigation, arbitration, conciliation or mediation. Moreover, for the avoidance of any doubt, the declarant hereby undertakes (for itself and on behalf of all related parties) to forgo any reliance on any right under any award, judgment, or court order pertaining to the relevant order or orders or under the relevant order or orders.

h. The declarant further represents that as of the date of this undertaking, it has not transferred any of its claims under any award, judgment, or court order pertaining to the relevant order or orders or under the relevant order or orders, or granted any rights, to third parties, and further undertakes to not transfer any of its claims to third parties after entering this undertaking. Where any such claim or right is transferred, the declarant confirms that it has provided the particulars of all the interested parties in Part L, and the undertakings from each of such interested parties is attached with this undertaking in accordance with Part M of the Annexure.

i. In the event that, notwithstanding the foregoing, any person asserts, brings, files or maintains any claim against the Republic of India or Indian affiliates (hereinafter collectively referred to as “releasees”) at any time on or after the date of furnishing this undertaking, the declarant shall indemnify, defend and hold harmless such releases from and against any and all costs, expenses (including attorney’s fees and court’s fees), interest, damages, and liabilities of any nature arising out of or in any way relating to the assertion or, bringing, filing or maintaining of such claim. The declarant specifically represents that, to the best of its knowledge, after—

i. the execution of this undertaking;

ii. the execution of any separate related undertaking by any other party in connection with the relevant order or orders; and

iii. irrevocable withdrawal of all pending proceeding as outlined in this undertaking, no other claim regarding the said relevant order or orders referenced above, or any related award, judgment, or court order, shall remain outstanding against the Republic of India or any Indian affiliates. To avoid any doubt, the declarant’s indemnity of releasees under this clause shall include any claim brought by any third party alleging that it has obtained the declarant’s claims under an award, judgment or court order or the relevant order or orders. An indemnity bond to this effect is attached in Part N of the undertaking.

j. For the removal of any doubt, the declarant fully assumes the risk through the indemnity in clause (i) of any omission or mistake with respect to securing releasees against any related claim by any person. If the declarant fails to obtain any release from such person, the declarant warrants that it will indemnify the Republic of India or any Indian affiliates from any defense costs, court costs, and damages. An indemnity bond to the effect of clauses (i) and (j) is annexed to the undertaking.

k. The declarant further undertakes to refrain from facilitating, procuring, encouraging or otherwise assisting any person (including but not limited to any related party or interested party) from bringing any proceeding or claims of any kind referred to in the above clauses, or any proceeding or claim of any kind related to any relevant order or orders referred to above (whether in respect of tax, interest or penalty). The declarant shall notify by a public notice or press release, at any time before furnishing intimation in Form No. 3 where this Form is required to be furnished under rule 11UF and before furnishing this undertaking in other cases, that by signing this undertaking any claims arising out of or relating to the relevant order or orders or any related award, judgment or court order, no longer subsist. Such public notice or press release shall include, among other things, confirmation that,—

i. the declarant (and its related parties) forever irrevocably forgo any reliance on any right and provisions under any award, judgment or court order pertaining to the relevant order or orders or under the relevant order or orders;

ii. the declarant has provided this undertaking, which includes a complete release of the Republic of India and any Indian Affiliates with respect to any award, judgment or court order pertaining to the relevant order or orders or under the relevant order or orders, and with respect to any claim pertaining to the relevant order or orders;

iii. the undertaking also includes an indemnity against any claims brought against the Republic of India or any India affiliate, including by related parties or interested parties, contrary to the release; and

iv. the declarant confirms it will treat any such award, judgment or court order as null and void and without legal effect to the same extent as if it had been set aside by a competent court and will not take any action or initiate any proceeding or bring any claim based on that.

l. The declarant confirms that the undertakings given herein are intended to be enforceable by the Republic of India, including so as to secure the irrevocable waiver, withdrawal or discontinuance (as appropriate) of all the proceeding and claims referred to in any of the clauses of this undertaking.

m. The declarant represents and warrants that:

i. it has full legal power and authority to execute and deliver this undertaking (including but not limited to the issuance of the indemnity described in clauses (i) and (j)under applicable law;

ii. the execution, delivery and performance of this undertaking (including but not limited to the issuance of the indemnity described in clauses (i) and (j) has been duly authorised by all necessary corporate action, including but not limited to any board resolution or similar authorisation under applicable law (see Note 3);

iii. this undertaking constitutes the legal, valid and binding obligation of the declarant, enforceable against the declarant in accordance with its terms;

iv. such authorisations described in the above sub-clauses (i), (ii) and (iii) are effective under applicable law, and to this end, letters from local counsel in the relevant jurisdictions are attached to this undertaking which confirm the legality of such authorisations under applicable law.

n. The declarant confirms that by submitting the present undertaking, it fulfills the conditions specified in the Explanation below the sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9.

o. The details of the bank account in which the refund may be credited are provided in Part J of the Annexure.

p. The details of all the interested parties are provided in Part K and Part L of the Annexure. The undertaking in Part M of the Annexure by each of such persons is attached with this undertaking. The declarant represents and warrants that:

i. all such undertakings have been executed and delivered by the person who has full legal power and authority to execute and deliver such undertakings;

ii. the execution, delivery and performance of this undertaking has been duly authorised by all necessary corporate action; and

iii. this undertaking constitutes the legal, valid and binding obligation of the declarant, enforceable against such person in accordance with its terms. Such separate, related undertakings may take the same form as this undertaking.

q. The declarant is or is not covered under sub-rule (6) of rule 11UF and in case if the declarant is not covered under said sub-rule all the conditions provided under sub-rule (2) of rule 11UE have been fulfilled.

r. This undertaking is governed by relevant Indian law and any dispute with respect to this undertaking shall be subject to Indian laws and be decided in accordance with the procedures specified in the Act under the exclusive jurisdiction of the relevant income-tax authorities, tribunals or courts in Republic of India, as the case may be, which are empowered to decide disputes under the Act.

I also confirm that I am aware of all the consequences and implications of this undertaking.

Place:…………………………………

Signature:………………………………….

Date: …………………………………………………………………………………………………………………………….

Attachments

1. The Board Resolution or legal authorisation, as the case may be, as referred to in clause (m) of the undertaking

2. An indemnity bond to the effect of clause (i) and clause (j) of the undertaking attached in Part N of the undertaking.

3. Copy of the public notice referred to in clause (k) of the undertaking, where Form No. 3 is not required to be furnished under sub-rule (6) of rule 11UF.

4. Attachments as required in different parts of the Annexure to this undertaking.

Notes

1. This information is required to be furnished where the Permanent Account Number or Aadhaar Number of the signatory is available.

2. Company Identification Number and Taxpayer Identification Number are to be provided where Permanent Account Number or Aadhaar Number or Tax Deduction Account Number of the declarant are not available.

3. The Board Resolution or legal authorisation, as referred to in clause (m) of the undertaking shall, among other things:

a. record the signatory’s power and authority to give the undertaking on behalf of the declarant; and

b. record the declarant’s power and authority to indemnify defend and hold harmless the Republic of India and the Indian affiliates in accordance with clause (i) of the undertaking.

VERIFICATION

Verified that the contents of this undertaking are true to the best of my knowledge and belief. No part of the undertaking is false and nothing has been concealed or misstated therein.

Verified at________________ place_______________ on this the_________ day________________ of ______ month_______________ , year .

Place: ……………………

Date:……………………..

Signature…………………………

Annexure

Part A– Particulars of the relevant order or orders:

Sl. No.	Assessment Year or Financial year	Income-tax Authority passing the order	Details of the order under consideration		Taxes or penalty determined	Interest	Total demand	Relief, provided in any appeal proceeding , if any	Demand recovered from the declarant	Pending demand or refund due as on date	Details of the attachments made by any Income-tax Authority
			Section and sub-section of the Income-tax Act, 1961	Date of order
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)

Part B– Particulars of the relevant order or orders covered by sub-clause (i) of clauses (b), (c) and (d) of the undertaking:

Sl. No.	Sl. No. in Part A where the relevant order is mentioned	No appeal or application or petition or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court has been filed(refer clause (b)(i) of the undertaking).	No proceeding has been initiated for arbitration, conciliation or mediation, and no notice has been given thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise (refer clause (c)(i) of the undertaking).	No proceeding initiated to enforce or pursue attachments in connection with any award, order or judgment, any other relief that may have been ordered or issued or passed by any tribunal or court or other judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the declarant against the Republic of India and Indian affiliates (refer clause (d)(i) of the undertaking).
(1)	(2)	(3)	(4)	(5)
		Applicable or Not applicable	Applicable or Not applicable	Applicable or Not applicable

Part C: Particulars of the appeals or applications or petitions or proceeding under sub-clauses (ii) and (iii) of clause (b) of the undertaking:

Sl. No.	Sl. No. in Part A where the relevant order is mentioned	Nature of appeals or applications or petitions or proceeding	Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court before whom such appeals or applications or petitions or proceeding has been filed	Date of filing the appeals or applications or petitions or proceeding	Date of disposing of or withdrawal such appeals or applications or petitions or proceeding (Please attach a copy of order by the Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court accepting the withdrawal or disposing of)
(1)	(2)	(3)	(4)	(5)	(6)

Part D – Particulars of the appeals or applications or petitions or proceeding under sub-clause (iv) of clauses (b) of the undertaking:

Sl. No.	Sl. No. in Part A where the relevant order is mentioned	Nature of appeals or applications or petitions or proceeding	Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court before whom such appeals or applications or petitions or proceeding has been filed	Date of filing the appeals or applications or petitions or proceeding
(1)	(2)	(3)	(4)	(5)

Part E – Particulars of the proceeding for arbitration, conciliation or mediation, or notices under sub-clause (ii) and (iii) of clause (c) of the undertaking:

Sr. No.	Sl. No in Part A where the relevant order is mentioned	Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given	Particulars (including the name of the country) where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued	Date of initiating the proceeding for arbitration, conciliation or mediation/issue of notice	Name of the agreement entered into by India under which the proceeding for arbitration, conciliation or mediation are pending	Status of the proceeding for arbitration, conciliation or mediation	Date of disposing of or withdrawal of such proceeding for arbitration, conciliation or mediation, or notices (Please attach evidence of such disposing of or withdrawal, including order of the Tribunal or court or other judicial or quasi-judicial or administrative authority).
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)

Part F – Particulars of the proceeding for arbitration, conciliation or mediation, or notices under sub-clause (iv) of clause (c) of the undertaking:

Sl. No.	Sl. No in Part A where the relevant order is mentioned	Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given	Particulars (including the name of the country where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued)	Date of initiating the proceeding for arbitration, conciliation or mediation/issue of notice	Name of the agreement entered into by India under which proceeding for arbitration, conciliation or mediation are pending	Status of the proceeding for arbitration, conciliation or mediation
(1)	(2)	(3)	(4)	(5)	(6)	(7)

Part G – Particulars of the award, order or judgment or any other relief under sub-clause (v) of clause (c) of the undertaking:

Sl. No.	Sl. No. in Part A where the relevant order is mentioned	Nature of such award, order or judgment or any other relief	Particulars (including the name of the country) where proceeding related to such award, order, judgment or any other relief were held	Date of such award, order, judgment or any other relief along with reference number	Status of the award, order, judgment or any other relief
(1)	(2)	(3)	(4)	(5)	(6)

Part H – Particulars of the proceeding to enforce any award, order or judgment or any other relief under sub-clauses (ii) and (iii) of clause (d) of the undertaking:

Sl. No.	Sl. No. in Part A where the relevant order is mentioned	Nature of proceeding to enforce such award, order or judgment or any other relief	Particulars (including the name of the country where such proceeding to enforce any award, order or judgment or any other relief are taking place)	Date of filing proceeding to enforce any award, order or judgment or any other relief	Nature of such award, order or judgment or any other relief (Attach copy thereof)	Status of the proceeding to enforce such award, order or judgment or any other relief	Date of disposing of or withdrawal of proceeding to enforce such award, order or judgment or any other relief (Please attach a copy of evidence of such disposing of/withdrawal, including order of the Court or other judicial authority)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)

Part I – Particulars of the proceeding to enforce any award, order or judgment or any other relief under sub-clause (iv) of clause (d) of the undertaking:

Sl. No.	Sl. No in Part A where the relevant order is mentioned	Nature of proceeding to enforce such award, order or judgment or any other relief	Particulars (including the name of the country where such proceeding to enforce any award, order or judgment or any other relief are taking place)	Date of filing proceeding to enforce any award, order or judgment or any other relief	Nature of such award, order or judgment or any other relief (Attach copy thereof)	Status of the proceeding to enforce such award, order or judgment or any other relief
(1)	(2)	(3)	(4)	(5)	(6)	(7)

Part J – Details of bank account in Republic of India to which the refund is to be remitted

Sl. No.	Bank Name and Address	Account Number and other required details for remittance
(1)	(2)	(3)

Part K– Details of all the companies or entities in the entire chain of holding of the declarant till the ultimate holding company or entity of the declarant:

Sl. No.	Name of holding company	Percentage of the ownership by such holding company in the declarant as on the date of undertaking	If the ownership in the declarant is not held directly by such holding company, the chain of ownership with the names of all the companies in the chain of ownership
(1)	(2)	(3)	(4)

Part L- Details of all the interested parties other than the interested parties covered under Part K

Sl. No.	Name of such persons whose interest may be affected directly or indirectly by this undertaking	Nature of interest of such person	Amount of interest of such person (Rs), if available
(1)	(2)	(3)	(4)

PART M Undertaking by person(s) declared in Part K and Part L of the Undertaking

To,
Principal Commissioner/Commissioner
……………….. ……………………… ………….

Sir/Madam,

I………………….. (name in block letters) son/daughter of…………………………………………….. designation ……………….. .and nationality …………………………. .and related passport number……………………………… (hereinafter referred to as “signatory”) having Permanent Account Number/Aadhaar Number (see Note 1) ………………………………. on behalf of …………………………………. . (name of the interested party) having Permanent Account Number/Aadhaar number/Tax Deduction Account Number (see Note 2) …………………………………………. . and being duly authorised and competent to represent the interested party in this regard pursuant to Board Resolution and legal authorisation (see Note 3), as the case may be , hereby declare as follows:

(a) The particulars of specified orders that have been passed or made in respect of income accruing or arising through or from the transfer of an asset or a capital asset situate in India in consequence of the transfer of a share or interest in a company or entity registered or incorporated outside Republic of India made before the 28th day of May, 2012 in the case of declarant and the nature of interest of the interested party in such specified orders are provided in Part MA of the Annexure.

(b) The interested party has (strike off options that are not applicable):

i. not filed any appeal or application or petition or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant order or orders, and hereby undertakes that it shall not file any appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such relevant order or orders are provided in Part MB of the Annexure;

ii. filed one or more appeals or applications or petitions or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant order or orders and has irrevocably, on a with prejudice basis, withdrawn all such appeals or applications or petitions or proceeding or such appeals or applications or petitions or proceeding have been disposed at any time before the date of filing Form No. 1, and hereby undertake that it shall not file any appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such appeals or applications or petitions or proceeding filed and irrevocably withdrawn with prejudice by the interested party, are provided in Part MC of the Annexure.

iii. filed one or more appeals or applications or petitions or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant order or orders and all the appeals or applications or petitions or proceeding filed by the interested party have been disposed of and no further appeal or application or petition or proceeding has been filed by the interested party and evidence thereof is furnished herewith and hereby undertake that it shall not file any appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such appeals or applications or petitions or proceeding filed and disposed of, are provided in Part MC of the Annexure.

iv. filed appeals or applications or petitions or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court against the relevant order or orders and one or more of such appeals or applications or petitions or proceeding are pending as on the date of this undertaking and hereby undertakes to irrevocably withdraw, terminate and discontinue any and all such appeals or applications or petitions or proceeding that are pending as on the date of signing this undertaking, on a with prejudice basis, in accordance with clause (e) below. The interested party further undertakes that it shall not file any such appeal, application, petition or proceeding in future against the relevant order or orders. Particulars of such pending appeals or applications or petitions or proceeding filed by the interested party and their status as on the date of this undertaking, are provided in Part D of the Annexure. Particulars of any appeals or applications or petitions or proceeding as described in this clause (b) which are not covered by the sub-clauses (i) and (ii) are also provided in Part MD of the Annexure.

i. not initiated any proceeding for arbitration, conciliation or mediation, and no notice has been given thereof under any law for the time being in force or under any agreement entered into by Republic of India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant order or orders, and hereby undertakes that it shall not initiate any such arbitration, conciliation or mediation in future. Particulars of such relevant order or orders are provided in Part MB of the Annexure;

ii. initiated proceeding for arbitration, conciliation or mediation, or notices thereof has been given, under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant order or orders and has irrevocably, on a with prejudice basis, withdrawn any such proceeding for arbitration, conciliation or mediation, and notices given thereof. The interested party hereby undertakes that it shall not reopen in future any such proceeding or initiate or file any such arbitration, conciliation or mediation in future arising out of or in connection with the relevant order or orders. Particulars of such proceeding for arbitration, conciliation or mediation and notices given thereof, initiated and irrevocably withdrawn with prejudice by the interested party, are provided in Part ME of the Annexure.

iii. initiated proceeding for arbitration, conciliation or mediation, or notices thereof has been given, under any law for the time being in force or under any agreement entered into by Republic of India with any other country or territory outside India, whether for protection of investment or otherwise against the relevant order or orders and all the arbitration, conciliation or mediation filed by the interested party have been disposed of and no further proceeding has been initiated by the interested party and evidence thereof is furnished herewith. The interested party hereby undertakes that it shall not reopen in future any such proceeding or initiate or file any such arbitration, conciliation or mediation in future arising out of or in connection with the relevant order or orders. Particulars of such proceeding for arbitration, conciliation or mediation and notices given thereof, initiated and disposed of, are provided in Part ME of the Annexure.

iv. has initiated proceeding for arbitration, conciliation or mediation, or notices thereof has been given, under any law for the time being in force or under any agreement entered into by Republic of India with any other country or territory outside Republic of India, whether for protection of investment or otherwise against the relevant order or orders and one or more of such proceeding or notices are pending on the date of undertaking and hereby undertakes to irrevocably withdraw, terminate and discontinue any and all such proceeding or notices for arbitration, conciliation or mediation that are pending as on the date of signing this undertaking, on a with prejudice basis, in accordance with clause (e). Particulars of such pending proceeding and notices filed by the interested party are provided in Part F of the Annexure. The interested party hereby further undertakes that it shall not initiate any such arbitration, conciliation or mediation in future arising out of or in connection with the relevant order or orders. Particulars of any proceeding for arbitration, conciliation or mediation, or notices thereof, which are not covered by the sub-clause (i) and sub- clause (ii), are also provided in Part MF of the Annexure.

v. received or got any awards, orders, judgements or any other reliefs issued in favour of the interested party, arising out of or in any way relating to the imposition of tax, interest and penalty based on the relevant order or orders, under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise and hereby undertakes to irrevocably waive any right to seek or pursue any claim or costs or declaratory relief in relation to or arising out of such awards, orders or judgments or any other relief that may have been ordered, issued or passed against India and any Indian affiliate, whether it is in proceeding initiated by the interested party or by India and any Indian affiliate. The interested party also undertakes to irrevocably waive any right to seek or pursue any claim for costs in respect of any proceeding initiated by the Republic to set aside such award, order or judgment issued in favour of the interested party. The interested party hereby undertakes that it shall not initiate or file any such arbitration, conciliation or mediation in future. Particulars of such awards, orders, judgment or any other relief are provided in Part MG of the Annexure.

(d) The interested party has (strike off options that are not applicable):

i. not initiated any proceeding to enforce or pursue attachments in connection with any awards, orders, judgments, or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the interested party as referred in clause (c) of this undertaking either against the Republic of India and any Indian affiliate, and hereby undertakes that it shall not initiate any such proceeding in future. Particulars of such award, order or judgment are provided in Part MB of the Annexure.

ii. initiated proceeding to enforce or pursue attachments in connection with any awards, orders, judgements or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the interested party, as referred to in clause (c) of this undertaking against the Republic of India and any Indian affiliate. The interested party has irrevocably and with prejudice withdrawn or discontinued any such proceeding and hereby undertakes that it shall not reopen any such proceeding in future or file fresh proceeding to enforce or pursue attachments. Particulars of such proceeding, initiated and withdrawn or discontinued by the interested party, are provided in Part MH of the Annexure.

iii. initiated proceeding to enforce or pursue attachments in connection with any awards, orders, judgements or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the interested party, as referred to in clause (c) of this undertaking against the Republic of India and any Indian affiliate. All such proceeding filed by the interested party have been disposed of and no further proceeding has been filed by the interested party and evidence is herewith furnished and hereby undertakes that it shall not reopen any such proceeding in future or file or initiate fresh proceeding to enforce or pursue attachments. Particulars of such proceeding, initiated and disposed of, are provided in Part MH of the Annexure.

iv. initiated proceeding to enforce or pursue attachments in respect of any awards, orders, judgments, or any other relief that may have been ordered, issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the interested party as referred to in clause (c) of this undertaking, either against the Republic of India and any Indian affiliate and one or more of such proceeding are pending on the date of undertaking and, interested party has obtained one or more orders from any court or other authority which remain outstanding against India and any Indian affiliate. The interested party hereby undertakes that it shall not file in future any such proceeding to enforce or pursue attachments regarding any awards, orders, judgments, or any other relief that may have been ordered , issued or passed by any tribunal or court or other judicial, quasi-judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the interested party as referenced in clause (c) of this undertaking or to enforce the orders from any court or other authority which remain outstanding against India and any Indian affiliate. The interested party further undertakes to fully cooperate with the Republic of India or any Indian affiliate which is subject to such outstanding order, in order to set-aside or otherwise nullify any such outstanding order, and irrevocably and with prejudice waives any rights or remedies arising from such outstanding order. Particulars of such proceeding, are provided in Part MI of the Annexure. Particulars of any such proceeding, to enforce or pursue attachments in connection with any awards, orders, judgments, or any other relief, which are not covered by the sub-clauses (i) and (ii), are also provided in Part MI of the Annexure. The interested party also undertakes to irrevocably withdraw, terminate and discontinue with prejudice any and all such proceeding to enforce or pursue attachments in accordance with clause (e) below.

(e) The interested party hereby undertakes as follows: –

i. to irrevocably and with prejudice withdraw, discontinue, terminate and take all necessary steps to irrevocably and with prejudice close the pending proceeding referred in sub-clause (iv) of clause (b), sub-clause (iv) of clause (c), sub-clause (v) of clause (c) and sub-clause (iv) of clause (d) of this undertaking, as well as any other pending proceeding against Republic of India or Indian affiliates relating to the relevant order or orders and not referenced in clauses (b), (c) and (d) above, and not to pursue in any way and by any means in future the pending proceeding as referenced in clauses (b), (c) and (d) and any other pending proceeding relating to the relevant order or orders not referred in the above clauses and any other fresh proceeding relating to the relevant order or orders. In so acting, interested party shall act in accordance with this undertaking and in full cooperation with the Republic of India.

ii. to irrevocably terminate, release, discharge, and forever irrevocably waive any right, whether direct or indirect, and any claims, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, court’s fees, expenses, damages, judgments, orders, declaratory reliefs, and liabilities of whatever kind or nature at law, in equity, or otherwise, whether now known or unknown previously (or in future discovered), suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed, or do exist or which hereafter can, shall or may exist , in relation to any award, order, judgment, or any other relief as referred in clauses (b), (c) and (d) of this undertaking, against the Republic of India and all Indian affiliates, ordered, issued or passed in connection with the relevant order or orders, whether it is in proceeding initiated by the interested party or by India and any Indian affiliate. For the avoidance of doubt, the interested party’s irrevocable waiver includes irrevocable waiver of any right provided by any existing ex parte, provisional, or other kind of court order permitting enforcement or attachment against the Republic of India and any Indian affiliate, in furtherance of any award, order, judgment, or any other relief that may have been ordered or issued or passed by any arbitral tribunal as referred in clauses (b), (c) and (d). The interested party further undertakes to fully cooperate with the Republic of India or any Indian affiliate which is subject to any outstanding order referenced in clause (d), in order to set aside or otherwise nullify any such outstanding order, and irrevocably and with prejudice waives any rights or remedies arising from such outstanding order. For further avoidance of doubt, the interested party also undertakes to irrevocably waive any right to seek or pursue any claim for costs in respect of any proceeding initiated by Republic of India and any Indian Affiliate to set aside such award, order or judgment ordered, issued or passed in favour of the interested party. Such irrevocable waiver includes, but is not limited to, any right under any relevant ex parte order.

(f) The interested party specifically represents that all Parts of the Annexure as described in this undertaking are full and complete to the best of its knowledge.

(g) The interested party hereby undertakes to irrevocably terminate, release, discharge, and forever irrevocably waive any right, whether direct or indirect, and any remedies, claims, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, court’s fees, expenses, damages, judgments, orders, compensation and liabilities of whatever kind or nature at law, in equity, or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed, or do exist or which hereafter can, shall or may exist, based on pursuit of any remedy or any and all claims, demands, damages, judgments, awards, costs, expenses, compensation or liabilities of any kind (whether asserted or unasserted) in relation to any facts, events, or omissions occurring from the beginning of time to the date of this undertaking and thereafter in future in relation to taxation of said income or relevant order or orders, or any related award, judgment or court order, which may otherwise be available to the interested party under any law for the time being in force, in equity, under any statute or under any agreement entered into by India with any country or territory outside India, whether for protection of investment or otherwise , whether it is in proceeding initiated by the interested party or by India and any Indian affiliate. For the avoidance of doubt, the interested party’s above waiver includes an irrevocable waiver of any claim against India and any Indian affiliate to costs incurred or interest accrued in relation to the relevant order or orders, or any related ongoing or completed litigation, arbitration, conciliation or mediation. Moreover, for the avoidance of any doubt, the interested party hereby undertakes to forgo any reliance on any right under any award, judgment, or court order pertaining to the relevant order or orders or under the relevant order or orders.

(h) The interested party further represents that as of the date of this undertaking, it has not transferred any of its claims under any award, judgment, or court order pertaining to the relevant order or orders or under the relevant order or orders, or granted any rights, to third parties, and further undertakes to not transfer any of its claims to third parties after entering this undertaking.

(i) In the event that, notwithstanding the foregoing, any person asserts, brings , files or maintains any claim against the Republic of India or Indian affiliates (hereinafter collectively referred to as “releasees”)at any time on or after the date of furnishing this undertaking, the interested party shall indemnify, defend and hold harmless such releasee from and against any and all costs, expenses (including attorneys’ fees and court’s fees), interest, damages, and liabilities of any nature arising out of or in any way relating to the assertion or, bringing, filing or maintaining of such claim. The interested party specifically represents that, to the best of its knowledge, after

i. the execution of this undertaking;

ii. the execution of any separate related undertaking by any other party in connection with the relevant order or orders; and

iii. irrevocable withdrawal of all pending proceeding as outlined in this undertaking.

no other claim regarding the said relevant order or orders referenced above, or any related award, judgment, or court order, shall remain outstanding against the Republic of India or any Indian affiliate. To avoid any doubt, the interested party’s indemnity of releases shall include any claim brought by any third party alleging that it has obtained the interested party’s claims under an award, judgment or court order or the relevant order or orders. An indemnity bond to this effect is attached in Part N of the undertaking.

(j) For the avoidance of any doubt, the interested party fully assumes the risk through the indemnity in clause (i) of any omission or mistake with respect to securing releases against any related claim by any person. If the interested party fails to obtain any release from such person, the interested party warrants that it will indemnify the Republic of India or any Indian affiliates from any defense costs, court costs, and damages. An indemnity bond to the effect of clauses (i) and (j) is annexed to the undertaking.

(k) The interested party further undertakes to refrain from facilitating, procuring, encouraging or otherwise assisting any party (including but not limited to any related party) from bringing any proceeding or claims of any kind referred to in the above clauses, or any proceeding or claim of any kind related to any relevant order or orders referred to above (whether in respect of tax, interest or penalty). The interested party shall notify by a public notice or press release, at any time before furnishing intimation in Form No. 3 where Form No. 3 is required to be furnished under rule 11UF and before furnishing this undertaking in other cases, that by signing this undertaking any claims arising out of or relating to the relevant order or orders or any related award, judgment or court order, no longer subsist. Such public notice shall include, among other things, confirmation that,-

i. the interested party forever irrevocably forgoes any reliance on any right and provisions under any award, judgment, or court order pertaining to the relevant order or orders or under the relevant order or orders;

ii. the interested party has provided this undertaking, which includes a complete release of the Republic of India and any Indian Affiliate with respect to any award, judgment, or court order pertaining to the relevant order or orders or under the relevant order or orders, and with respect to any claim pertaining to the relevant order or orders;

iii. the undertaking also includes an indemnity against any claims brought against the Republic of India or any India affiliate contrary to the release; and

iv. the interested party confirms it will treat any such award, judgment, or court order as null and void and without legal effect to the same extent as if it had been set aside by a competent court and will not take any action or initiate any proceeding or bring any claim based on that.

(l) The interested party confirms that the undertakings given herein are intended to be enforceable by the Republic of India, including so as to secure the irrevocable waiver, withdrawal or discontinuance (as appropriate) of all the proceeding and claims referred to in any of the clauses of this undertaking.

(m) The interested party represents and warrants that:

i. it has full legal power and authority to execute and deliver this undertaking (including but not limited to the issuance of the indemnity described in clauses (i) and (j) under applicable law;

iii. this undertaking constitutes the legal, valid and binding obligation of the interested party, enforceable against the interested party in accordance with its terms;

(n) This undertaking is governed by relevant Indian law and any dispute with respect to this undertaking shall be subject to Indian laws and be decided in accordance with the procedures specified in the Act under the exclusive jurisdiction of the relevant Income-tax authorities, tribunals or courts in India, as the case may be, which are empowered to decide disputes under the Act.

I also confirm that, I am aware of all the consequences and implications of this undertaking.

Place: ……………….. .

Date: ……………………….. .

Signature………………………………………….

Attachments

1. The Board Resolution and legal authorisation, as referred to in clause (m) of Part M.

2. An indemnity bond to the effect of clauses (i) and (j) of Part M in Part N of the undertaking in Form No. 1;

3. Copy of the public notice referred to in clause (k) of Part M, where Form No. 3 is not required to be furnished under sub-rule (6) of rule 11UF.

4. Attachments as required in different parts of the Annexure to Part M of this undertaking

Note:

1. This information is required to be furnished where the Permanent Account Number or Aadhaar Number of the signatory is available.

2. Company Identification Number and Taxpayer Identification Number are to be provided where Permanent Account Number/Aadhaar Number or Tax Deduction Account Number of the interested party are not available.

3. The Board Resolution or legal authorisation, as referred to in clause (m) of the undertaking shall, among other things:

a. record the Signatory’s power and authority to give the undertaking on behalf of the interested party; and

b. record the interested party’s power and authority to indemnify defend and hold harmless the Republic of India and the Indian affiliates in accordance with clause (i) of the undertaking.

VERIFICATION

Verified that the contents of this undertaking are true to the best of my knowledge and belief. No part of the undertaking is false and nothing has been concealed or misstated therein.

Verified at ___________place_________ on this the ___day ____of ___month ______ ,_year ________ .

Place: ……………..

Date: ……………….

Signature…………….

Annexure

Part MA– Particulars of the relevant order or orders:

Sl. No.	Assessment Year or Financial year	Income-tax Authority passing the order	Details of the order under consideration		Nature of interest of the interested party
			Section and sub-section of the Income-tax Act, 1961	Date of order
(1)	(2)	(3)	(4)	(5)	(6)

Part MB– Particulars of the relevant order or orders covered by sub-clause (i) of clauses (b), (c) and (d) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	No appeal or application or petition or proceeding before any Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court has been filed(refer clause (b)(i) of the undertaking).	No proceeding has been initiated for arbitration, conciliation or mediation, and no notice has been given thereof under any law for the time being in force or under any agreement entered into by India with any other country or territory outside India, whether for protection of investment or otherwise (refer clause (c)(i) of the undertaking).	No proceeding initiated to enforce or pursue attachments in connection with any award, order or judgment, any other relief that may have been ordered or issued or passed by any tribunal or court or other judicial or administrative authority in relation to the said arbitration, conciliation or mediation proceeding in favour of the interested party against the Republic of India and Indian affiliates (refer clause (d)(i) of the undertaking).
(1)	(2)	(3)	(4)	(6)
		Applicable or Not applicable	Applicable or Not applicable	Applicable or Not applicable

Part MC – Particulars of the appeals or applications or petitions or proceeding under sub-clauses (ii) and (iii) of clause (b) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of appeals or applications or petitions or proceeding	Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court before whom such appeals or applications or petitions or proceeding has been filed	Date of filing the appeals or applications or petitions or proceeding	Date of disposing of or withdrawal of such appeals or applications or petitions or proceeding (Please attach a copy of order by the Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court accepting the withdrawal or disposing of)
(1)	(2)	(3)	(4)	(5)	(6)

Part MD – Particulars of the appeals or applications or petitions or proceeding under sub-clause (iv) of clause (b) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of appeals or applications or petitions or proceeding	Income-tax authority or Authority for Advance Rulings constituted under section 245-O of the Act or the Board for Advance Rulings under section 245-OB or Income-tax Settlement Commission constituted under section 245B or the Interim Board for Settlement constituted under section 245AA or any tribunal or court before whom such appeals or applications or petitions or proceeding has been filed	Date of filing the appeals or applications or petitions or proceeding
(1)	(2)	(3)	(4)	(5)

Part ME – Particulars of the proceeding for arbitration, conciliation or mediation, or notices under sub-clauses (ii) and (iii) of clause (c) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given	Particulars (including the name of the country where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued)	Date of initiating the proceeding for arbitration, conciliation or mediation/issue of notice	Name of the agreement entered into by India under which the proceeding for arbitration, conciliation or mediation are pending	Status of the proceeding for arbitration, conciliation or mediation	Date of disposing of or withdrawal of such proceeding for arbitration, conciliation or mediation, or notices (Please attach evidence of such disposing or withdrawal, including order of the Tribunal or court or other judicial or quasi-judicial or administrative authority)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)

Part MF – Particulars of the proceeding for arbitration, conciliation or mediation, or notices under sub-clause (iv) of clause (c) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given	Particulars (including the name of the country where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued)	Date of initiating the proceeding for arbitration, conciliation or mediation/issue of notice	Name of the agreement entered into by India under which the proceeding for arbitration, conciliation or mediation are pending	Status of the proceeding for arbitration, conciliation or mediation
(1)	(2)	(3)	(4)	(5)	(6)	(7)

Part MG – Particulars of the award, order or judgment or any other relief under sub-clause (v) of clause (c) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of such award, order or judgment or any other relief	Particulars (Including the name of the country) where proceeding related to such award, order, judgment or any other relief were held	Date of such award, order, judgment or any other relief along with reference number	Status of the award, order, judgment or any other relief
(1)	(2)	(3)	(4)	(5)	(6)

Part MH – Particulars of the proceeding to enforce any award, order or judgment or any other relief under sub-clauses (ii) and (iii) of clause (d) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of proceeding to enforce such award, order or judgment or any other relief	Particulars (including the name of the country where such proceeding to enforce any award, order or judgment or any other relief are taking place)	Date of filing proceeding to enforce any award, order or judgment or any other relief	Nature of such award, order or judgment or any other relief (Attach copy thereof)	Status of the proceeding to enforce such award, order or judgment or any other relief	Date of disposing of or withdrawal of proceeding to enforce such award, order or judgment or any other relief (Please attach a copy of evidence of such disposing of/withdrawal, including order of the Court or other judicial authority)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)

Part MI – Particulars of the proceeding under sub-clause (iv) of clause (d) of the undertaking:

Sl. No.	Sl. No. in Part MA where the relevant order is mentioned	Nature of proceeding to enforce such award, order or judgment or any other relief	Particulars (including the name of the country where such proceeding to enforce any award, order or judgment or any other relief are taking place)	Date of filing proceeding to enforce any award, order or judgment or any other relief	Nature of such award, order or judgment or any other relief (Attach copy thereof)	Status of the proceeding to enforce such award, order or judgment or any other relief
(1)	(2)	(3)	(4)	(5)	(6)	(7)

Part N

INDEMNITY BOND

This Indemnity Bond (“Bond”) is made on this………….. day of……….. , 2021 by………….. (name in block letters) son/daughter of………………….. designation and nationality……………………… and related passport number…………….. (hereinafter referred to as “Signatory”) having Permanent Account Number/Aadhaar Number/Tax Deduction Account Number (See Note 1)………………. on behalf of……………. (name of the declarant or interested party, as the case may be) having Permanent Account Number/Aadhaar number/Tax Deduction Account Number………………………… (See Note 2) and being duly authorised and competent to represent the declarant or interested party, as the case may be, in this regard pursuant to Board Resolution or legal authorisation (See Note 3), of the FIRST PART.

And

The Republic of India and any Indian affiliate (hereinafter collectively referred to as “releases”) of the OTHER PART WHEREAS:

A. The Income-tax Rules, 1962 have been amended and the Income-tax (31st Amendment) Rules, 2021 have come into force from the date of their publication in the Official Gazette.

B. The declarant or interested party, as the case may be, has filed an undertaking under sub-rule (1) of rule 11UE of the Income -tax Rules, 1962, to which this indemnity bond is annexed. Any defined terms not defined herein shall have the same meaning as the definitions given under rule 11UE and the undertaking.

C. Pursuant to the above, the declarant or interested party, as the case may be, has agreed to indemnify, defend and hold harmless the Republic of India and Indian affiliates from and against any and all costs, expenses (including attorney fees and court fees), interest, damages, and liabilities of any nature arising out of or in any way relating to the assertion or, bringing, filing or maintaining of any claim at any time after the date of furnishing the undertaking in Form No. 1 by any person, related to any relevant order or orders, or in relation to any award, order, judgment, or any other relief, or to any dispute underlying the award, and the declarant or interested party, as the case may be, has agreed to furnish an indemnity bond to this effect, such that the declarant or interested party, as the case may be, fully assumes the risk of any omission or mistake with respect to identification and procurement of authorisations and undertakings from any related parties or interested parties as provided in the undertaking, and securing the Republic of India and Indian affiliates from any claim related to any relevant order or orders, or in relation to any award, order, judgment, or any other relief or to the dispute underlying the award against the Republic of India or Indian affiliates in connection with the relevant order or orders.

D. Accordingly the declarant or interested party, as the case may be, is executing this Indemnity Bond in favour of the Republic of India on the terms appearing hereunder.

NOW THIS INDEMINTY BOND WITNESSETH AS FOLLOWS:

1. In the event that any person or entity asserts, brings, files or maintains any claim against any releasee at any time on or after the date of furnishing this undertaking, related to any relevant order or orders, or in relation to any award, order, judgment, or any other relief, or to any dispute underlying the award, against the Republic of India or Indian affiliates in connection with the relevant order or orders, the declarant or interested party, as the case may be, shall indemnify, defend and hold harmless such releases from and against any and all costs, expenses (including attorney fees and court fees), interest, damages, and liabilities of any nature arising out of or in any way relating to the assertion or, bringing, filing or maintaining of such claim.

2. The declarant or interested party, as the case may be, specifically represents that, to the best of
its knowledge, after—

i. the execution of this undertaking;

ii. the execution of any separate related undertaking by any other party in connection with the relevant order or orders; and

iii. withdrawal of all pending proceeding as outlined in this undertaking,

that no other claim regarding the said relevant order or orders referenced above, or any related award, judgment, or court order, or any aspect of the dispute underlying the award shall remain outstanding against the Republic of India or other release.

Explanation I.-For the removal of any doubt, the declarant’s or interested party’s indemnity of releases under this clause shall include any claim brought by any third party alleging that it has obtained declarant’s or interested party’s, as the case may be, claims under an award, judgment or court order or the relevant order or orders.

Explanation II.- the declarant or interested party, as the case may be, fully assumes the risk through this indemnity of any omission or mistake with respect to securing releases against any related claim by any person. If the declarant or interested party, as the case may be, fails to obtain any release from such person, the declarant or interested party, as the case may be, indemnifies through this document the releases from any defense costs, court costs, and damages.

3. This Indemnity Bond shall be governed by the relevant laws of India and the Delhi High Court
shall have sole jurisdiction to entertain and try any dispute or difference arising out of or in connection with the terms of this Bond.

IN WITNESS WHEREOF the undersigned herein has signed and set his hands on this ………………. day of………… , 2021.

For and on behalf of the declarant or interested party, as the case may be,

Name and address of Witness

Signature of the Witness

Place:
Date:
Notes

1. This information is required to be furnished where the Permanent Account Number or Aadhaar Number of the signatory is available.

3. The Board Resolution or legal authorisation, as referred to in clause (m) of the undertaking shall, among other things:

(a) record the signatory’s power and authority to give the undertaking on behalf of the declarant or interested party, as the case may be; and

(b) record the declarant or interested party’s power and authority, as the case may be, to indemnify defend and hold harmless the Republic of India and the Indian affiliates in accordance with clause (i) of the undertaking).]

Note:

^1.Inserted by the Income-tax (Thirty-first Amendment) Rules, 2021, w.e.f. 1-10-2021.

*******

Form No. : 2

¹[FORM NO. 2
[See rule 11UF]
Form for Certificate Under sub-rule (2) of rule 11UF

<Name of the declarant>
Address of the declarant
Sir/Madam

1. The……………………… (name of the declarant) (hereinafter referred to as the declarant) with Permanent Account Number/Aadhaar number/Tax Deduction Account Number/Company Identification Number and Taxpayer Identification Number……….. has filed an undertaking in Form No. 1 dated………. under sub-rule (1) of the rule 11UE of the rules.

2. Pursuant to the undertaking filed by the declarant in Form No. 1 under sub-rule (1) of rule 11UE, the provisions of fifth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 of the Act shall be applicable to the orders mentioned below, subject to the fulfilment of the conditions specified in said proviso read with relevant rules and fulfilment of the undertakings by the declarant in Form No. 1:

TABLE

Sl. No.

Sl. No. of the Table in Part A of Form No. 1 where the relevant order is mentioned

Assessment
Year or
Financial
year

Income-tax Authority passing the order

Details of the
order under
consideration

Taxes or
Penalty
determined

Interest

Total demand

Relief, provided in any appeal proceeding, if any

Demand recovered from the declarant

Pending demand or refund due as on date

Details of
the attachments
made by any Income-tax Authority

Section
and
sub-section
of the
Income-tax
Act, 1961

Date
of
order

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

3. Demand recovered, as per the column (11) of the Table above, shall be refunded to the declarant, subject to the conditions under sub-rule (2) of the rule 11UE and the provisions of the Act, without any interest as per the provisions of the sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 of the Act, attachments, if any, the details whereof are provided in column (13) of the Table, shall be revoked and appeals or applications or petitions or proceeding, if any, filed by any income-tax authority or any other person representing the Republic of India with respect to the specified orders, as per column (2) of the Table, shall be withdrawn or intimation shall be sent to the concerned person, on the issue of Form No. 4, as per the procedure provided in sub-rule (16) of rule 11UF. Further, no interest under section 244A of the Act will be payable to the declarant as per the provisions of sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 of the Act.

Certificate No…….
Place…..
Date………..

………………………….

(Principal Commissioner/Commissioner of Income-tax) ]

Note:

^1.Inserted by the Income-tax (Thirty-first Amendment) Rules, 2021, w.e.f. 1-10-2021.

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Form No. : 2A

FORM NO. 2A [Omitted by the IT (Tenth Amdt.) Rules, 2001, w.e.f. 2-7-2001. Earlier, existing Form No. 2A was inserted by the IT (Third Amdt.) Rules, 1994, w.e.f. 1-6-1994; substituted by the IT (Fourth Amdt.) Rules, 1995, w.e.f. 1-6-1995; amended by the IT (Fourth Amdt.) Rules, 1998, w.e.f. 1-4- 1998 and later on substituted by the IT (Fifth Amdt.) Rules, 2000, w.e.f. 11-5-2000.]

*******

Form No. : 2B

FORM NO. 2B [Omitted by the IT (Twenty-first Amdt.) Rules, 2021, w.e.f. 29-7-2021 (see rule 130). Earlier, Form No. 2B was inserted by the IT (Sixteenth Amdt.) Rules, 1995, w.e.f. 23-8-1995; amended by the IT (Eighth Amdt.) Rules, 1999, w.e.f. 18-5-1999, IT (Sixth Amdt.) Rules, 2000, w.e.f. 11-5-2000 and later on substituted by the IT (Fifteenth Amdt.) Rules, 2001, w.e.f. 27-7-2001.]

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Form No. : 2C

FORM NO. 2C [Omitted by the IT (Twenty-first Amdt.) Rules, 2021, w.e.f. 29-7-2021 (see rule 130). Earlier, Form No. 2C was inserted by the IT (Eighth Amdt.) Rules, 1997, w.e.f. 27-6-1997; substituted by the IT (Eleventh Amdt.) Rules, 1998, w.e.f. 25-8-1998; amended by the IT (Seventh Amdt.) Rules, 2000, w.e.f. 11-5-2000 and IT (Eighteenth Amdt.) Rules, 2002, w.e.f. 29-7-2002 and later on substituted IT (Sixteenth Amdt.) Rules, 2001, w.e.f. 27-7-2001.]

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Form No. : 2E

FORM NO. 2E [Omitted by the IT (Twenty-first Amdt.) Rules, 2021, w.e.f. 29-7-2021 (see rule 130). Earlier, Form No. 2E was inserted by the IT (Sixth Amdt.) Rules, 2003, w.e.f. 14-5-2003 and later on amended by the IT (Ninth Amdt.) Rules, 2004, w.e.f. 14-7-2004 and IT (Sixteenth Amdt.) Rules, 2005, w.e.f. 20-6-2005.

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Form No. : 3

¹[FORM NO. 3

[See rule 11UF]

Intimation for Withdrawal under sub-rule (3) of rule 11UF of the Income- tax Rules, 1962

To,

The Principal Commissioner/Commissioner

………………………………………. ……………………………….

Sir/Madam,

I……………… (name in block letters) son/daughter of ………………… designation ……………..and nationality ………………..and related passport number………………. (hereinafter referred to as “signatory”) having Permanent Account Number/Aadhaar Number ………………………(see Note 1) on behalf of …………………….. (name of the declarant) having Permanent Account Number/Aadhaar number/Tax Deduction Account Number (see Note 2) ……………………………….. and being duly authorised and competent to represent the declarant in this regard pursuant to Board Resolution and legal authorisation (see Note 3), as the case may be, hereby confirm that the declarant has received an order in Form No. 2 dated________

Pursuant thereto, I confirm that the pending appeals or applications or petitions, arbitration, conciliation, mediation, claims or other proceeding, if any, as referred in Part D, Part F, Part G, Part I and Part M of the undertaking in Form No. 1 dated…… have been irrevocably, on a with prejudice basis, withdrawn or discontinued and are not being pursued. The evidence of action taken in this regard are enclosed herewith.

Place…………….
Date……………..

………………..
Signature/Verification

Attachments

1. Attach the Board Resolution or legal authorisation, as the case may be, as referred to in clause (m) of the undertaking.

2. Attach the evidence of action taken as referred above.

VERIFICATION

Verified that the contents of this intimation are true to the best of my knowledge and belief. No part of the intimation is false and nothing has been concealed or misstated therein.

Verified at……place………. on this the ……. day …………. of…. month……….,…year………..
Place: ……………..
Date: ……………..

Signature
………………………………..

Notes

1. This information is required to be furnished where the Permanent Account Number or Aadhaar Number of the signatory is available.

2. Company Identification Number and Taxpayer Identification Number are to be provided where Permanent Account Number or Aadhaar Number or Tax Deduction Account Number of the interested party are not available.

3. The Board Resolution or legal authorisation, as referred to in clause (m) of the undertaking and such Board resolution or legal authorisation shall, among other things:

(a) record the signatory’s power and authority to give the undertaking on behalf of the interested party; and

(b) record the interested party’s power and authority to indemnify defend and hold harmless the Republic of India and the Indian affiliates in accordance with clause (i) of the undertaking.]

Note:

^1.Inserted by the Income-tax (Thirty-first Amendment) Rules, 2021, w.e.f. 1-10-2021.

*********

Form No. : 3AA

FORM NO. 3AA [Omitted by the IT (Twenty-first Amdt.) Rules, 2021, w.e.f. 29-7-2021 (see rule 130). Earlier, Form No. 3AA was inserted by the IT (Fourteenth Amdt.) Rules, 2002, w.e.f. 1-4-2003 and later on amended by the IT (Fifteenth Amdt.) Rules, 2004, w.e.f. 1-4-2005.]

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Form No. : 3AAA

FORM NO. 3AAA [Omitted by the IT (Twenty-first Amdt.) Rules, 2021, w.e.f. 29-7-2021 (see rule 130). Earlier, Form No. 3AAA was inserted by the IT (Sixth Amdt.) Rules, 1986, w.e.f. 1-4-1987 and later on amended by the IT (Ninth Amdt.) Rules, 1987 and IT (Fourteenth Amdt.) Rules, 2002, w.e.f. 1-4-2003.]

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Form No. : 3AB

FORM NO. 3AB [Omitted by the IT (Thirty-second Amdt.) Rules, 1999, w.e.f. 19-11-1999. Earlier, Form No. 3AB was inserted by the IT (Amdt.) Rules, 1978 and amended by the IT (Sixth Amdt.) Rules, 1986, w.e.f. 1-4-1987.]

*********

Tax Reference Tables

Tax rates for last 10 years

Disclaimer:

The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.

Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.Tax rates for last 10 years

➢ Income-tax Rates for Individuals and HUFs

➢ Income-tax Rates for Firms (Including LLPS)

➢ Income-tax Rates for AOP/BOI/AJP

➢ Income-tax Rates for Companies

➢ Income-tax Rates for Co-Operative Societies

[As amended by Finance Act, 2025]

Tax Rates

Disclaimer:

The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.

Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.

Tax Rates

1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person

Individuals
(Other than resident senior and super senior citizen)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2026-27	Assessment Year 2025-26
Up to Rs. 2,50,000	–	–
Rs. 2,50,000 to Rs. 5,00,000	5%	5%
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%
Resident Senior Citizen
(who is 60 years or more but less than 80 years at any time during the previous year)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2026-27	Assessment Year 2025-26
Up to Rs. 3,00,000	–	–
Rs. 3,00,000 to Rs. 5,00,000	5%	5%
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%
Resident Super Senior Citizen
(who is 80 years or more at any time during the previous year)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2026-27	Assessment Year 2025-26
Up to Rs. 5,00,000	–	–
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%
Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2025-26	Assessment Year 2024-25
Up to Rs. 2,50,000	–	–
Rs. 2,50,000 to Rs. 5,00,000	5%	5%
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%

Add:

a.Surcharge :Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Rate of Surcharge
*Range of Income*
Rs. 50 Lakhs to Rs. 1 Crore	Rs. 1 Crore to Rs. 2 Crores	Rs. 2 Crores to Rs. 5 Crores	above Rs. 5 crore
10%	15%	25%	37%

Note:

(1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, on dividend income or income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

(2) The surcharge rate for AOP with all members as a company, shall be capped at 15%.

(3) The surcharge rate is nil if the total income of a ‘specified fund’ as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

Marginal relief is available from surcharge in following manner-

i. in case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

ii. in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

iii. in case where net income exceeds Rs. 2 crores but doesn’t exceed Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores.

iv. in case where net income exceeds Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crores by more than the amount of income that exceeds Rs. 5 crores.

b.Health and Education Cess :Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

Notes:

(1) The Health and Education Cess is nil if the total income of a ‘specified fund’ as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

(2) A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

Alternate Minimum Tax (AMT)

An individual is liable to pay Alternate Minimum Tax where tax payable by him, on his total income computed as per normal provisions of the Act, is less than 18.5% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as income of such individual and he shall be liable to pay tax at the rate of 18.5% of such ‘adjusted total income’.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of an assessee other than a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

1.1. Special tax Rate for Individual, HUF, AOP, BOI or AJP

The Finance Act 2020 inserted Section 115BAC, with effect from the assessment year 2021-22, to provide for an alternative regime providing for lower tax rates in the case of an individual or a Hindu undivided family (HUF). The Finance Act, 2023 extends the scope of this regime to AOP, BOI, and AJP as well and makes it a default tax regime. However, an assessee has to forego various exemptions and deductions for claiming the benefit of reduced tax rates under this regime.

The tax rates under the this regime are as under:

For Assessment Year 2025-26:

*Net Income Range*	*Tax rate*
Upto Rs. 3,00,000	Nil
From Rs. 3,00,001 to Rs. 7,00,000	5%
From Rs. 7,00,001 to Rs.10,00,000	10%
From Rs. 10,00,001 to Rs. 12,00,000	15%
From Rs. 12,00,001 to Rs. 15,00,000	20%
Above Rs. 15,00,000	30%

For Assessment Year 2026-27:

*Net Income Range*	*Tax rate*
Upto Rs. 4,00,000	Nil
From Rs. 4,00,001 to Rs. 8,00,000	5%
From Rs. 8,00,001 to Rs. 12,00,000	10%
From Rs. 12,00,001 to Rs. 16,00,000	15%
From Rs. 16,00,001 to Rs. 20,00,000	20%
From Rs. 20,00,001 to Rs. 24,00,000	25%
Above Rs. 24,00,000	30%

Add:

a.Surcharge :Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

*Range of Income*
Rs. 50 Lakhs to Rs. 1 Crore	Rs. 1 Crore to Rs. 2 Crores	Rs. 2 crores to Rs. 5 crores	Exceeding Rs. 5 Crores
10%	15%	25%	37%

Note: The enhanced surcharge of 25% is not levied, on income by way of dividend or from income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. Also, the surcharge rate for AOP with all members as a company, shall be capped at 15%.

Further, the surcharge rate is nil if the total income of a ‘specified fund’ as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) .

However, marginal relief is available from surcharge in following manner-

iii. in case where net income exceeds Rs. 2 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores.

b. Health and Education Cess :Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge. However, The Health and Education Cess is nil if the total income of a ‘specified fund’ as referred to section 10(4D)includes any income in respect of securities as given under section 115AD(1)(a).

Notes:

(a) A maximum rebate of Rs. 25,000 is allowed under section 87A, if the total income of a resident individual, who is opting for the new tax scheme under Section 115BAC(1A), is up to Rs. 7,00,000 [Applicable for AY 2025-26].

(b) A maximum rebate of Rs. 60,000 is allowed under section 87A, if the total income of a resident individual, who is opting for the new tax scheme under Section 115BAC(1A), is up to Rs. 12,00,000 [Applicable from AY 2026-27].

Note: The total rebate under section 87A shall not exceed the amount of income tax payable as per the rates provided in section 115BAC(1A) [effective from AY 2026-27]

(c) Further, if the total income of the resident individual chargeable to tax section 115BAC(1A) exceeds Rs. 7 or 12 lakhs and the tax payable on such income exceeds the difference between the total income and Rs. 7 or 12 lakhs he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount of income by which it exceeds Rs. 7 or 12 lakhs.

2. Partnership Firm

A partnership firm (including LLP) is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge

Alternate Minimum Tax (AMT)

3. Local Authority

A local authority is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Alternate Minimum Tax (AMT)

A Local Authority is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such ‘adjusted total income’.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

4. Domestic Company

Income-tax rates applicable in case of domestic companies for assessment years 2026-27 and 2025-26 are as follows:

*Domestic Company*
*Domestic Company*	Assessment Year 2026-27	Assessment Year 2025-26
Where its total turnover or gross receipt during the previous year 2022-23 does not exceed Rs. 400 crore	NA	25%
Where its total turnover or gross receipt during the previous year 2023-24 does not exceed Rs. 400 crore	25%	NA
Any other domestic company	30%	30%

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

(ii) Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Minimum Alternate Tax (MAT)

A domestic company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of ‘book profit’. In such a case the ‘book profit’ is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such ‘book profit’.

However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

4.1. Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies are as follows:

*Domestic Company*
Where it opted for section 115BA	25%
Where it opted for Section 115BAA	22%
Where it opted for Section 115BAB	15%

Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.

5. Foreign Company

Assessment Year 2025-26 and 2026-27

Nature of Income	Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government	50%
Any other income	35%

Add:

(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Minimum Alternate Tax (MAT)

A foreign company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of ‘book profit’. In such a case the ‘book profit’ is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such ‘book profit’.

However, the provisions of MAT do not apply in case of foreign companies if it does not have permanent establishment (PE) in India or opts for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB.

6. Co-operative Society

Assessment Years 2025-26 and 2026-27

Taxable income	Tax Rate
Up to Rs. 10,000	10%
Rs. 10,000 to Rs. 20,000	20%
Above Rs. 20,000	30%

Add:

(a) (a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Note:

(a) A co-op. society is liable to pay Alternate Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of ‘adjusted total income’. In such a case the ‘adjusted total income’ is taken as the income of co-op. society and it shall be liable to pay tax at the rate of 15% of such ‘adjusted total income’.

(b) If the assessee is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the rate of AMT will be 9%.

6.1. Alternative Tax regime for Co-operative societies

Income-tax Act allows a co-operative society to choose from the following alternative taxation regime subject to fulfilment of prescribed conditions:

Section

Conditions

Tax rate

Section 115BAE

The co-operative society is set up and registered on or after 01-04-2023;

It is engaged in manufacture or production of any article or thing;

It commences manufacturing on or before 31-03-2024 ; and

It does not claim specified exemption, incentive or deduction.

15% (Income from manufacturing activities)

Section 115BAD

If co-operative society does not claim specified exemption, incentive or deduction

22%

Add:

(a) Surcharge: The surcharge is levied at a rate of 10% on the amount of income-tax irrespective of the total income of such co-operative society.

(b) Health & Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Note:

(a) If a co-operative society has exercised the option of Section 115BAD or Section 115BAE, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.

[As amended by Finance Act, 2025]

Tax Rates – DTAA v. Income-tax Act

Disclaimer:

The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.

Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.

Tax rates as per IT Act vis a vis Tax Treaties

Country	Dividend		Interest		Royalty		Fee for Technical Services
	Tax Treaty	I-T Act (Note 1)	Tax Treaty	I-T Act (Note 2)	Tax Treaty	I-T Act (Note 3)	Tax Treaty	I-T Act (Note 3)
Albania	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Armenia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Australia	15%	20%/10%	15%	20%/10%/5%	10%/15%	20%	No separate provision	20%
Austria	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Bangladesh	a) 10% (if at least 10% of the capital of the company paying the dividend is held by the recipient company); b) 15% in all other cases	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Belarus	a) 10%, if paid to a company holding 25% shares; b) 15%, in all other cases	20%/10%	10%	20%/10%/5%	15%	20%	15%	20%
Belgium	15%	20%/10%	15% (10% if loan is if granted by a bank)	20%/10%/5%	10%	20%	10%	20%
Bhutan	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Botswana	a) 7.5%, if shareholder is a company and holds at least 25% shares in the investee-company; b) 10%, in all other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Brazil	15%	20%/10%	15%	20%/10%/5%	25% for use of trademark; 15% for others	20%	No separate provision	20%
Bulgaria	15%	20%/10%	15%	20%/10%/5%	15% of royalty relating to literary, artistic, scientific works other than films or tapes used for radio or television broadcasting; 20% in other cases	20%	20%	20%
Canada	a) 15%, if at least 10% of the voting powers in the company, paying the dividends, is controlled by the recipient company; b) 25%, in other cases	20%/10%	15%	20%/10%/5%	10%-20%	20%	10%-20%	20%
China	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Colombia	5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Croatia	a) 5% (if at least 10% of the capital of the company paying the dividend is held by the recipient company); b) 15% in all other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Cyprus	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Czech Republic [Note8]	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Denmark	a) 15%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 25%, in other cases	20%/10%	a) 10% if loan is granted by bank; b) 15% for others	20%/10%/5%	20%	20%	20%	20%
Estonia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Ethiopia	7.5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Finland	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Fiji	5%	20%/10%`	10%	20%/10%/5%	10%	20%	10%	20%
France	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Georgia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Germany	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Greece	20%	20%/10%	20%	20%/10%/5%	10%	20%	No separate provision	20%
Hongkong	5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Hungary	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Indonesia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Iceland	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Ireland	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Iran	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Israel	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Italy	a) 15% if at least 10% of the shares of the company paying dividend is beneficially owned by the recipient company; b) 25% in other cases	20%/10%	15%	20%/10%/5%	20%	20%	20%	20%
Japan	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Jordan	10%	20%/10%	10%	20%/10%/5%	20%	20%	20%	20%
Kazakhstan	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Kenya	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Korea	15%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Kuwait	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Kyrgyz Republic	10%	20%/10%	10%	20%/10%/5%	15%	10%	15%	20%
Libyan Arab Jamahiriya	10% 20%	20%/10%	20%	20%/10%/5%	20%	20%	No separate provision	20%
Latvia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Lithuania	a) 5%, if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends. b) 15%, in other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Luxembourg	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Malaysia	5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Malta	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Mongolia	15%	20%/10%	15%	20%/10%/5%	15%	20%	15%	20%
Mauritius	a) 5%, if at least 10% of the capital of the company paying the dividend is held by the recipient company; b) 15%, in other cases	20%/10%	7.5%	20%/10%/5%	15%	20%	10%	20%
Montenegro	(a ) 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends; (b ) 15% in other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Myanmar	5%	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Morocco	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Mozambique	7.5%	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Macedonia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Namibia	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Nepal	(a) 5% if the beneficial owner is a company which owns at least 10 per cent of the shares of the company paying the dividends; (b) 15% in all other cases.	20%/10%	10%	20%/10%/5%	15%	20%	No separate provision	20%
Netherlands	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
New Zealand	15%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Norway	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Oman	a) 10%, if at least 10% of shares are held by the recipient company; b) 12.5%, in other cases	20%/10%	10%	20%/10%/5%	15%	20%	15%	20%
Philippines	a) 15%, if at least 10% of the shares of the company paying the dividend is held by the recipient company; b) 20%, in other cases	20%/10%	a) 10%, if interest is received by a financial institution or insurance company; b) 15% in other cases	20%/10%/5%	15% if it is payable in pursuance of any collaboration agreement approved by the Government of India	20%	No separate provision	20%
Poland	10%	20%/10%	10%	20%/10%/5%	22.5%	20%	22.5%	10%
Portuguese Republic	10%***/15%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Qatar	a) 5% if the beneficial owner is a company which owns at least ten per cent of the shares of the company paying the dividend; and b) 10% in all other cases.	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Romania	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Russian Federation	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Saudi Arabia	5%	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Serbia	a) 5%, if recipient is company and holds 25% shares; b) 15%, in any other case	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Singapore	a) 10%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 15%, in other cases	20%/10%	a) 10%, if loan is granted by a bank or similar institute including an insurance company; b) 15%, in all other cases	20%/10%/5%	10%	20%	10%	20%
Slovenia	a) 5% if the beneficial owner is a company which owns at least ten per cent of the shares of the company paying the dividend; and b)15% in all other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
South Africa	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Spain	15%	20%/10%	15%	20%/10%/5%	10%	20%	10%	20%
Sri Lanka	7.5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Sudan	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Sweden	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Swiss	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Syrian Arab Republic	a) 5%, if at least 10% of the shares of the company paying the dividend is held by the recipient company; b) 10%, in other cases	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Taipei	12.5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Tajikistan	a) 5%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 10%, in other cases	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Tanzania	10% (5% if shareholder is a company and holds 25% shares)	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Thailand	10%	20%/10%	10%	20%/10%/5%	10%	20%	No separate provision	20%
Trinidad and Tobago	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Turkey	15%	20%/10%	a) 10% if loan is granted by a bank, etc.; b) 15% in other cases	20%/10%/5%	15%	20%	15%	20%
Turkmenistan	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Uganda	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Ukraine	a) 10%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 15%, in other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
United Arab Emirates	10%	20%/10%	a) 5% if loan is granted by a bank/similar financial institute; b) 12.5%, in other cases	20%/10%/5%	10%	20%	No separate provision	20%
United Arab Republic (EGPT)	10%/20% [Note 4]	20%/10%	20% [Note 4]	20%/10%/5%	20% [Note 4]	20%	No separate provision	20%
United Mexican States	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
United Kingdom	(a) 15% o where dividends are paid out of income (including gains) derived directly or indirectly from immovable property within the meaning of Article 6 by an investment vehicle which distributes most of this income annually and whose income from such immovable property is exempted from tax (b ) 10% in all other case (Note 5)	20%/10%	a) 10%, if interest is paid to a bank; b) 15%, in other cases	20%/10%/5%	10%/15%	20%	10%/15%	20%
United States	a) 15%, if at least 10% of the voting stock of the company paying the dividend is held by the recipient company; b) 25% in other cases	20%/10%	a) 10% if loan is granted by a bank/similar institute including insurance company; b) 15% for others	20%/10%/5%	10%/15%	20%	10%/15%	20%
Uruguay	5%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Uzbekistan	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Vietnam	10%	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%
Zambia	a) 5%, if at least 25% of the shares of the company paying the dividend is held by a recipient company for a period of at least 6 months prior to the date of payment of the dividend; b) 15% in other cases	20%/10%	10%	20%/10%/5%	10%	20%	10%	20%

Notes:

1) Dividend:

a) Rate of tax shall be 10% on income from Global Depository Receipts under Section 115AC(1)(b)of Income-tax Act, 1961.

b) Rate of tax shall be 20% under Section 115Aon dividend received by a foreign company or a non-resident non-corporate assessee. However, rate of tax shall be 10% on dividend received from a unit in an IFSC as referred to in section 80LA(1A).

c) Rate of tax shall be 20% under Section 115ADon dividend received by a Foreign institutional investor.

2) Interest

a) Rate of tax shall be 20% under Section 115Aon interest received by a foreign company or a non-resident non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency.

b) Rate of tax shall be 10% under Section 115ACon income from bonds of an Indian company issued in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf, or on bonds of a public sector company sold by the Government, and purchased by non-resident in foreign currency

c) Rate of tax shall be 5% in following cases:

(i) Interest received from an infrastructure debt fund as referred to in section 10(47)

(ii) Interest received from an Indian company specified in section 194LC.

(iii) Interest of the nature and extent referred to in section 194LD (applicable from the assessment year 2014-15).

(iv) Distributed income being interest referred to in section 194LBA(2) (section 194LBA is inserted by the Finance (No. 2) Act, 2014 w.e.f. 01-10-2014)

3. Royalties and fees for technical services would be taxable in the country of source at the rates prescribed for different categories of royalties and fees for technical services. These rates shall be subject to various conditions and nature of services/royalty for which payment is made. For detailed conditions refer to relevant Double Taxation Avoidance Agreements.

From Assessment Year 2017-18, any income of a person resident in India by way of royalty in respect of a patent developed and registered in India shall be taxable at the rate of 10% as per section 115BBF,

4. Articles 11, 12 and 13 of the India-UAR (Egypt) treaty don’t provide withholding tax rates in respect of dividend, interest and royalty payments. Thus, the tax shall be withheld as per rates applicable under the Income-tax Act 1961.

[As amended by Finance Act, 2025]

Tax Tutorials

Computation of Tax for Individual

Disclaimer:

The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.

Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.

Computation of Tax for Individual

The income taxable in the hands of an individual and tax liability thereon shall be computed according to his residential status. The income taxable under the Income-tax Act is computed under the five heads of income, and tax thereon is computed as per the tax slab rates applicable for that previous year.

Determination of residential status

Income-tax liability of an individual is calculated on the basis of his ‘Total Income’. His residential status in India influences the income to be included in the taxable income. An individual can be categorised into the following residential status during the previous year:

(a) Resident in India

(b) Resident but Not-ordinarily Resident

(c) Non-Resident in India

An individual, who is a resident in India, is liable to pay tax in India on his global income. On the other hand, a non-resident person is liable to pay tax in India only on that income which accrues or arises or is deemed to accrue or arise in India, and income received or deemed to be received in India. However, if the income of an individual is taxable in India and outside India, then he can claim a foreign tax credit in respect of such income.

Computation of income

Income tax is levied on the total income of an individual. Thus, the first step is to compute the total income. The total income of an assessee is computed in the following steps:

Calculate income under 5 heads

In Income-tax Act, the income is computed in the following 5 heads of income:

(a) Salary

(b) House Property

(c) Profits and gains from business or profession

(d) Capital Gain

(e) Income from Other Sources.

Clubbing of income of any other person

An individual is generally taxed in respect of his own income, but in respect of certain income, the Income-tax Act clubs the income of other persons in an individual’s income. Hence, an individual has to add another person’s income to his own income if clubbing provisions apply in his case.

Set off and carry forward of losses

Where an individual has incurred losses under any head of income, then he is allowed to make the following adjustments subject to relevant provisions relating to set-off and carry forward of losses:

(a) Intra-head adjustment to set-off of losses from one source of income against income from another source taxable under the same head of income.

(b) Inter-head adjustment to set-off of losses from one head of income against income taxable under another head of income.

If losses cannot be set off in the same year due to inadequacy of eligible profits, then certain losses are carried forward to the next assessment year.

Allowability of deductions under Chapter VI-A

The aggregate of income so computed as per aforesaid steps is called ‘Gross Total Income (GTI)’, out of which various deductions are allowed to a taxpayer on account of investments and savings made by him.

Determining total income

The balance income after allowing the deductions is called ‘Total Income’. The total income is bifurcated into 2 parts – Normal Income and Special Income. The normal income of a taxpayer is charged to tax as per applicable tax rates, and special income is charged to tax at special rates.

Computation of tax

To calculate an individual’s tax liability, income shall be first apportioned into normal income and special income. The bifurcation is done as normal income is taxable at applicable slab rates. However, where an individual opts for New Tax Regime as provided under Section 115BAC, the tax on normal income shall be charged at the rates provided under the said section. Whereas special income is taxed at special rates as prescribed under the Act.

An individual is liable to pay tax on normal income only if it exceeds the maximum exemption limit.

Applicability of AMT

Every assessee (other than a company) is subject to Alternative Minimum Tax (‘AMT’) if he has claimed any of the following deductions:

(a) Deduction under any provision (other than Section 80P) included in Chapter VI-A under the heading ‘C- Deduction in respect of certain income’; or

(b) Deduction under Section 10AA; or

The alternative minimum tax is payable by the individual if the adjusted total income exceeds Rs. 20 lakhs and the tax payable by him on his total income (computed as per normal provisions of the Act) is less than 18.5% (or 9% in case of a unit in IFSC) of ‘adjusted total income’.

Computation of tax liability on total income	Amount
AMT liability
Tax payable on deemed total income computed as per AMT provisions	xxx
Add: Surcharge	xxx
AMT after surcharge	xxx
Add: Health and Education Cess	xxx
*Total tax payable as per AMT provisions (A)*	xxx
Normal tax liability
Tax on income at normal rates Tax on income at special rates	xxx xxx
Tax on Total Income Less: Rebate under Section 87A	xxx (xxx)
Tax payable after rebate Add: Surcharge	xxx xxx
Tax payable after surcharge Add: Health and Education Cess	xxx xxx
*Total tax payable as per normal provisions (B)*	xxx
Gross tax payable [Higher of AMT liability (A) or Normal tax liability (B)]	xxx
Less: Tax-deferred on perquisite value of ESOPs issued by eligible start-ups	(xxx)
Gross tax payable (after excluding tax-deferred on perquisite value of ESOPs issued by eligible start-ups) Less: – AMT Credit – Relief under Section 89 – Foreign tax credit under Section 90, 90A or 91	xxx (xxx) (xxx) (xxx)
Net tax liability Add: – Interest under Section 234A, 234B, 234C – Fees for late filing of return under section 234F	xxx xxx xxx
Aggregate tax liability Less: Taxes Paid – TDS deducted – TCS collected – Advance tax paid – Self-Assessment Tax	xxx (xxx) (xxx) (xxx) (xxx)
*Total tax payable/ refundable*	*xxx*

Tax Rates for Individual

Normal Tax Rates (Old tax regime)

The normal tax rates are prescribed every year under the First Schedule of the Finance Act. The tax rates in the case of an individual have been enumerated in the below table:

*Net income range*	*Resident Super Senior Citizen*	*Resident Senior Citizen*	*Any other Individual*
Up to Rs. 2,50,000	Nil	Nil	Nil
Rs. 2,50,001- Rs. 3,00,000	Nil	Nil	5%
Rs. 3,00,001- Rs. 5,00,000	Nil	5%	5%
Rs. 5,00,001- Rs. 10,00,000	20%	20%	20%
Above Rs. 10,00,000	30%	30%	30%

‘Super senior citizen’ means an individual whose age is 80 years or more at any time during the relevant previous year.

‘Senior citizen’ means an individual whose age is 60 years or more at any time during the relevant previous year but less than 80 years on the last day of the previous year.

Normal Tax Rates (New tax regime)

Section 115BAC provides a new tax regime for individuals, which has reduced tax slabs. However, to avail of the benefit of this tax regime, the assessee has to forgo specified exemptions and deductions.

If an eligible assessee opts for this regime, the income shall be taxable at the following rate:

For assessment year 2025-26

Total Income (Rs)	*Rate*
Upto 3,00,000	Nil
From 3,00,001 to 7,00,000	5%
From 7,00,001 to 10,00,000	10%
From 10,00,001 to 12,00,000	15%
From 12,00,001 to 15,00,000	20%
Above 15,00,000	30%

For the assessment year 2026-27

*Total Income (Rs)*	*Rate*
Upto 4,00,000	Nil
From 4,00,001 to 8,00,000	5%
From 8,00,001 to 12,00,000	10%
From 12,00,001 to 16,00,000	15%
From 16,00,001 to 20,00,000	20%
From 20,00,001 to 24,00,000	25%
Above 24,00,000	30%

The assessee opting for payment of taxes under Section 115BAC is required to satisfy the following conditions:

(a) Total income of the assessee has to be computed without claiming the following specified exemptions and deductions;

Leave Travel concession [Section 10(5)];

House Rent Allowance [Section 10(13A)];

Official and personal allowances (other than those as may be prescribed) [Section 10(14)];

Allowances to MPs/MLAs [Section 10(17)];

Exemption for income of minor [Section 10(32)];

Deduction for units established in Special Economic Zones (SEZ) [Section 10AA];

Entertainment Allowance [Section 16(ii)];

Professional Tax [Section 16(iii)];

Interest on housing loan (In case of property referred under section 23(2) i.e. self-occupied house property) [Section 24(b)];

- Additional depreciation in respect of new plant and machinery [Section 32(1)(iia)];
- Deduction for investment in new plant and machinery in notified backward areas [Section 32AD];
- Deduction in respect of tea, coffee, or rubber business [Section 33AB];
- Deduction in respect of business consisting of prospecting or extraction or production of petroleum or natural gas in India [Section 33ABA];
- Deduction for donation made to approved scientific research association, university, college, or other institutes for doing scientific research which may or may not be related to business [Section 35(1)(ii)];
- Deduction for payment made to an Indian company for doing scientific research which may or may not be related to business [Section 35(1)(iia)];
- Deduction for donation made to a university, college, or other institution for doing research in social science or statistical research [Section 35(1)(iii)];
- Deduction for donation made for or expenditure on scientific research [Section 35(2AA)];
- Deduction in respect of capital expenditure incurred in respect of certain specified businesses, i.e., cold chain facility, warehousing facility, etc. [Section 35AD];
- Deduction for expenditure on agriculture extension project [Section 35CCC]; and
- Deduction under Sections 80C to 80U other than specified under Section 80JJAA, Section 80CCD(2), Section 80CCH(2), and Section 80LA(1A) [Chapter VI-A].

(b) Total income of the assessee has to be computed without set-off of losses or depreciation carried forward from earlier years if such loss or depreciation is attributable to any of the specified exemptions and deductions;

(c) Total income of the assessee has to be computed without set-off of any loss under the head “Income from house property” with any other head of income;

(d) Total income of the assessee has to be calculated after claiming depreciation in the prescribed manner; and

(e) Total income of the assessee has to be computed without claiming any exemptions or deductions for allowances or perquisites provided under any other law for the time being in force.

Special Tax Rates

Income-tax Act prescribes the following special tax rates in respect of certain income:

*Section*	*Assessee*	*Particulars*	*Tax Rate*
Section 111A	Any Person	Short-term capital gains arising from the transfer of equity shares or units of an equity-oriented mutual fund or units of business trust if the transfer of such capital asset is chargeable to Securities Transaction Tax (STT)	15% (if the asset is transferred before 23-07-2024) or 20% (if the asset is transferred on or after 23-07-2024)
Section 112	Any person	Long-term capital gains arising from the transfer of listed securities (other than a unit) or zero-coupon bonds without giving effect to the benefit of indexation.	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
	Non-resident	Long-term capital gains arising from the transfer of unlisted shares or shares of closely held companies without giving effect to the benefit of indexation and currency translation.	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
	Any Person	Any other long-term capital gains	20% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
Section 112A	Any Person	Long-term capital gains, in excess of Rs. 1.25 lakhs, arising from the transfer of equity shares, units of an equity-oriented mutual fund, or units of business trust if the transfer of such capital asset is chargeable to Securities Transaction Tax (STT)	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
Section 115A	Non-resident	Interest received from Government or an Indian concern on monies borrowed or debt incurred by such Government or the Indian concern in foreign currency	20%
	Non-resident	Interest received from notified Infrastructure Debt Fund as referred to in Section 10(47)	5%
	Non-resident	Interest received from an Indian Co. or business trust as specified in Section 194LC, i.e., interest in respect of monies borrowed by them in foreign currency or long-term infrastructure bonds or rupee-denominated bonds.	🞄Interest payable in respect of long-term bond or rupee-denominated bonds listed on a recognised stock exchange in IFSC- 4% if bonds are issued before 01-07-2023 and 9% if bonds are issued on or after 01-07-2023; 🞄In any other case- 5%
	Non-resident	Interest on rupee-denominated bonds of an Indian Co. or Government Securities or municipal debt securities as referred to in Section 194LD	5%
	Non-resident	Interest income distributed by business trust to its unit holders as referred to in Section 194LBA.	5%
	Non-resident	Dividend income	10% if the dividend is received from a unit in an IFSC otherwise 20%
	Non-resident	Income received in respect of units of specified Mutual Funds or of UTI purchased in foreign currency	20%
	Non-resident	Income by way of royalty or fees for technical services received from Indian concern or Government in pursuance of an approved agreement made after 31-3-1976. However, the benefit shall not be available if royalty or fees for technical services is connected with the assessee’s Permanent Establishment (PE) in India.	20%
Section 115AC	Non-resident	Long-term capital gains arising from the transfer of Bonds or GDRs of an Indian Company or Public sector company (PSU) purchased in foreign currency	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
	Non-resident	Interest on bonds of an Indian Company or Public Sector Company (PSU) purchased in foreign currency	10%
	Non-resident	Dividend on GDRs of an Indian Company or Public Sector Company (PSU) purchased in foreign currency	10%
Section 115ACA	Resident Individual	Long-term capital gains arising from the transfer of GDRs issued by an Indian company, engaged in specified knowledge-based industry or service, to its employees if such GDRs are purchased in foreign currency and capital gain is computed without taking benefit of foreign exchange fluctuation and indexation.	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
Section 115ACA	Resident Individual	Dividend on GDRSs issued by an Indian company, engaged in a specified knowledge-based industry or service, to its employees if such GDRs are purchased in foreign currency	10%
Section 115AD	Foreign Institutional Investors	Short-term capital gains arising from the transfer of equity shares or units of an equity-oriented mutual fund or units of business trust as covered under Section 111A	15% (if the asset is transferred before 23-07-2024) or 20% (if the asset is transferred on or after 23-07-2024)
		Short-term capital gains arising from the transfer of any other securities	30%
		Long-term capital gains in excess of Rs. 1.25 lakh arising from the transfer of equity shares or units of an equity-oriented mutual fund or units of business trust as covered under Section 112A	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
		Long-term capital gains arising from the transfer of other securities provided capital gain is computed without taking benefit of foreign exchange fluctuation and indexation.	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
	Foreign Institutional Investor	Interest on rupee-denominated bonds of an Indian Company or Government Securities or municipal debt securities.	5%
	Foreign Institutional Investor	Interest income from other securities	20%
	Foreign Institutional investor	Dividend income from securities (other than dividend from units of specified mutual fund or units of UTI purchased in foreign currency)	20%
	Foreign Institutional investor	Income from securities (other than income from units of specified mutual fund or units of UTI purchased in foreign currency)	20%
Section 115B	Assessee engaged in the life insurance business	Profit and gains of life insurance business	12.5%
Section 115BB	Any person	Income by way of winnings from lotteries, crossword puzzles, races including horse races, card games, and other games of any sort, or gambling or betting of any form or nature whatsoever (other than winnings from online games).	30%
Section 115BBA	Non-resident sportsman (foreign citizen)	Income of a sportsman: a) from participation in any game in India; b) advertisement; or c) from the contribution of articles relating to any game or sport in India in newspapers, magazines, or journals	20%
Section 115BBA	Non-resident entertainer (foreign citizen)	Income of an entertainer from performance in India	20%
Section 115BBC	Any person	Anonymous donation	30%
Section 115BBE	Any person	Undisclosed income as referred to in Sections 68, 69, 69A, 69B, 69C, and 69D	60%
Section 115BBF	Resident person	Income by way of royalty in respect of a patent developed and registered in India	10%
Section 115BBG	Any person	Any income by way of transfer of carbon credits	10%
Section 115BBH	Any Person	Income from the transfer of any Virtual Digital Asset (VDA)	30%
Section 115BBJ	Any Person	Income by way of winnings from Online Games	30%
Section 115E	Non-resident Indian	Long-term capital gains arising from the transfer of specified assets purchased in foreign currency	10% (if the asset is transferred before 23-07-2024) or 12.5% (if the asset is transferred on or after 23-07-2024)
Section 115E	Non-resident Indian	Income from specified asset purchased in foreign currency	20%

Rebate under Section 87A

In the case of a resident individual, a rebate of up to Rs. 12,500 is allowed under Section 87A from the amount of tax if the total income of such individual does not exceed Rs. 500,000.
A maximum rebate of Rs. 25,000 is allowed under section 87A from the amount of income tax on total income, which is chargeable to tax under section 115BAC(1A) . However, this rebate is allowed if the total income of assessee chargeable to tax under section 115BAC(1A) is up to Rs. 7,00,000. [Applicable for AY 2025-26]
A maximum rebate of Rs. 60,000 is allowed under Section 87A from the amount of income tax on total income, which is chargeable to tax under section 115BAC(1A). However, this rebate is allowed if the total income of assessee chargeable to tax under section 115BAC(1A) is up to Rs. 7,00,000. [Applicable from AY 2026-27]

Further, if the total income chargeable to tax under section 115BAC(1A) exceeds Rs. 7,00,000/12,00,000 and the tax payable on such income exceeds the difference between the total income and Rs. 7,00,000/12,00,000 he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount by which it exceeds Rs. 7,00,000/12,00,000.

Rate of Surcharge

In respect of an individual, the rate of surcharge shall be as under:

Nature of Income	Range of Total Income
Nature of Income	Up to Rs. 50 lakhs	More than Rs. 50 lakhs but up to Rs. 1 crore	More than Rs. 1 crore but up to Rs. 2 crores	More than Rs. 2 crores but up to Rs. 5 crores	More than Rs. 5 crores
Short-term capital gain covered under Section 111A or Section 115AD	Nil	10%	15%	15%	15%
Long-term capital gain covered under Section 112A or Section 115AD or Section 112	Nil	10%	15%	15%	15%
Dividend income (not being dividend income chargeable to tax at a special rate under sections 115A, 115AB , 115AC , 115ACA )	Nil	10%	15%	15%	15%
Unexplained income chargeable to tax under Section 115BBE	25%	25%	25%	25%	25%
Any other income (if opted for the old tax regime)	Nil	10%	15%	25%	37%
Any other income (if opted for the new tax regime of Section 115BAC)	Nil	10%	15%	25%	25%

Health and Education Cess

Every person is liable to pay health and education cess at the rate of 4% on the amount of income tax plus surcharge.

MCQs on Computation of tax for individual

Q1. A non-resident person is liable to pay tax in India on __________.

(a) Global Income

(b) Income which accrues or arises or deemed to accrue or arise in India

(d) Both (b) and (c)

Correct answer: (d)

Explanation: An individual, who is resident in India, is liable to pay tax in India on his global income. On the other hand, a non-resident person is liable to pay tax in India only on that income which accrues or arises or is deemed to accrue or arise in India, and income received or deemed to be received in India.

Q2. In the case of an individual, Alternate Minimum Tax (AMT) is payable at the rate of _______.

(a) 18.5%

(b) 15%

(d) 25%

Correct answer: (a)

Explanation: The alternative minimum tax is payable by the individual if the adjusted total income exceeds Rs. 20 lakhs and the tax payable by him on his total income (computed as per normal provisions of the Act) is less than 18.5% (or 9% in case of a unit in IFSC) of ‘adjusted total income’.

Q3. The Basic exemption limit for a resident Super Senior citizen is ________ if he opts out from the default tax regime under section 115BAC(6).

(a) Rs. 2,50,000

(b) Rs. 3,00,000

(d) None of the above

Correct answer: (c)

Explanation: The Basic exemption limit for a resident super senior citizen is Rs. 5,00,000, for a resident senior citizen is Rs. 3,00,000, and for any other individual is Rs. 2,50,000.

Q4. The Basic exemption limit for a resident Super Senior citizen is ________ for the assessment year 2026-27. (in case the assessee opts for taxation under section 115BAC).

(a) Rs. 2,50,000

(b) Rs. 4,00,000

(d) None of the above

Correct answer: (b)

Explanation: For A.Y. 2026-27, the basic exemption limit under Section 115BAC is Rs. 4,00,000, irrespective of the classification of the individual.

Q5. Short-term capital gains arising from the transfer of equity shares, chargeable to Securities Transaction Tax (STT), are taxable at the rate of ______.

(a) 10%

(b) 15%

(d) Slab rate

Correct answer: (b)

Explanation: Short-term capital gains arising from the transfer of equity shares or units of an equity-oriented mutual fund or units of business trust, if the transfer of such capital asset is chargeable to Securities Transaction Tax (STT) is taxable at the rate of 15% (if the asset is transferred before 23-07-2024) or 20% (if the asset is transferred on or after 23-07-2024).

Q6. A person having income by way of winnings from lotteries, or crossword puzzles, is taxable at the rate of _____.

(a) 20%

(b) 15%

(d) Slab rate

Correct answer: (c)

Explanation: Income by way of winnings from lotteries, crossword puzzles, races including horse races, card games, and other games of any sort, or gambling or betting of any form or nature whatsoever (other than winnings from online games) is taxed at the rate of 30%.

Q7. Which of the following deduction are allowed to an individual if he opts for the new tax regime of Section 115BAC?

(a) Section 80C

(b) Section 80D

(d) Section 80G

Correct answer: (c)

Explanation: If an individual has opted for new tax regime of Section 115BAC, the total income of such individual has to be computed without claiming the deductions under Sections 80C to 80U other than specified under Section 80JJAA, Section 80CCD(2), Section 80CCH(2), and Section 80LA(1A).

Q8. Whether set-off of losses under the head “Income from house property” with any other income is allowed to an individual if he opted for the tax regime of Section 115BAC?

(a) Yes

(b) No

Correct answer: (b)

Explanation: If an individual has opted default tax regime of Section 115BAC, the total income of the assessee has to be computed without set-off of any loss under the head “Income from house property” with any other head of income.

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Computation of Income and Tax Liability

Form No. : 1

Sl. No.

Assessment Year or Financial year

Income-tax Authority passing the order

Details of the order under consideration

Taxes or penalty determined

Interest

Total demand

Relief, provided in any appeal proceeding , if any

Demand recovered from the declarant

Pending demand or refund due as on date

Details of the attachments made by any Income-tax Authority

Section and sub-section of the Income-tax Act, 1961

Date of order

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Sr. No.

Sl. No in Part A where the relevant order is mentioned

Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given

Particulars (including the name of the country) where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued

Date of initiating the proceeding for arbitration, conciliation or mediation/issue of notice

Name of the agreement entered into by India under which the proceeding for arbitration, conciliation or mediation are pending

Status of the proceeding for arbitration, conciliation or mediation

Date of disposing of or withdrawal of such proceeding for arbitration, conciliation or mediation, or notices (Please attach evidence of such disposing of or withdrawal, including order of the Tribunal or court or other judicial or quasi-judicial or administrative authority).

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Sl. No.

Sl. No. in Part A where the relevant order is mentioned

Nature of proceeding to enforce such award, order or judgment or any other relief

Particulars (including the name of the country where such proceeding to enforce any award, order or judgment or any other relief are taking place)

Date of filing proceeding to enforce any award, order or judgment or any other relief

Nature of such award, order or judgment or any other relief (Attach copy thereof)

Status of the proceeding to enforce such award, order or judgment or any other relief

Date of disposing of or withdrawal of proceeding to enforce such award, order or judgment or any other relief (Please attach a copy of evidence of such disposing of/withdrawal, including order of the Court or other judicial authority)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Sl. No.

Sl. No. in Part MA where the relevant order is mentioned

Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given

Particulars (including the name of the country where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued)

Date of initiating the proceeding for arbitration, conciliation or mediation/issue of notice

Name of the agreement entered into by India under which the proceeding for arbitration, conciliation or mediation are pending

Status of the proceeding for arbitration, conciliation or mediation

Date of disposing of or withdrawal of such proceeding for arbitration, conciliation or mediation, or notices (Please attach evidence of such disposing or withdrawal, including order of the Tribunal or court or other judicial or quasi-judicial or administrative authority)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Sl. No.

Sl. No. in Part MA where the relevant order is mentioned

Nature of proceeding for arbitration, conciliation or mediation, or notices thereof with case number or Notice given

Particulars (including the name of the country where such proceeding for arbitration, conciliation or mediation are pending or notices thereof have been issued)

Details of the
order under
consideration

Taxes or
penalty
determined

Total
demand

Relief,
provided
in any
appeal
proceeding
, if any

Demand
recovered from
the
declarant

Section
and
sub-section of the
Income-tax Act,
1961

Sl. No in Part A where the
relevant
order is mentioned

Nature of proceeding for arbitration,
conciliation or mediation, or notices
thereof with
case number or Notice given

Particulars (including the name of the country) where such proceeding for
arbitration,
conciliation or
mediation are
pending or
notices thereof
have been
issued

Date of initiating the proceeding for arbitration, conciliation or
mediation/issue of notice

Name of the agreement entered into
by India
under which the proceeding for arbitration, conciliation or mediation are pending

Status of the proceeding for arbitration,
conciliation or mediation

Date of disposing of or withdrawal of such proceeding
for arbitration,
conciliation or mediation, or
notices (Please
attach evidence of
such disposing of or withdrawal,
including order of
the Tribunal or court or other
judicial or
quasi-judicial or administrative
authority).

Assessment
Year or
Financial
year

Details of the
order under
consideration

Taxes or
Penalty
determined

Details of
the attachments
made by any Income-tax Authority

Section
and
sub-section
of the
Income-tax
Act, 1961

Date
of
order