OPTIONAL RATE OF TAX FOR CERTAIN PERSONS
Under the income tax law some persons involved in retail business have
been given an option to pay tax at a certain percentage of turnover. This option is available only to the retailers being individuals or associations of persons, whose turnover is not more than Rs. 50,00,000 for the tax year.
They may opt for normal tax rates as are applicable for other businesses or may pay a final tax equal to 1% of the turnover.
TAX ON INCOME OF CERTAIN RETAILERS
If an individual or association of persons has turnover exceeding Rs. 50,00,000 and fulfills certain conditions such person shall pay a final tax at the following rates:
(1) Where turnover exceeds Rs. 50,00,000 but does not exceed Rs. 1,00,00,000, the tax payable will be Rs. 25,000 plus 0.5% of the turnover exceeding Rs. 50,00,000.
(ii) Where turnover exceeds Rs. 1,00,00,000, the tax payable will be
Rs. 50,000 plus 0.75% of the turnover exceeding Rs. 1,00,00,000. The conditions for these concessional rates are.
(a) The concession is for individuals or association of persons doing the retail business.
(b) It is applicable for textile fabrics and articles of apparel including
readymade garments or fashion wear, articles of Dfa Ho leather including foot wear, carpets, surgical goods and sports goods.
(c) The retailer shall not be entitled to claim any adjustment of withholding tax collected or deducted under any head during the year.
