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Discussion > Income Tax > Tax planning >

Tax Rates for A.Y 2011-12

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CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:16 Report Abuse

Tax rate applicable for A.Y. 2011-12 on Income, Dividend, Wealth, MAT, STT, Capital Gain and Presumptive Income

 

 

PERSONAL TAX SCENARIOS

 

 

Individual Income Level
  500,000 1,000,000 1,500,000
Current Tax 55,620 210,120 364,620
Proposed Tax 35,020 158,620 313,120
Effective Tax Savings 20,600 51,500 51,500
Effective Tax Savings (%) 37 25 14
 
Resident women below 65 years Income Level
  500,000 1,000,000 1,500,000
Current Tax 52,530 207,030 361,530
Proposed Tax 31,930 155,530 310,030
Effective Tax Savings 20,600 51,500 51,500
Effective Tax Savings (%) 39 25 14
 
Resident senior citizen Income Level
  500,000 1,000,000 1,500,000
Current Tax 47,380 201,880 356,380
Proposed Tax 26,780 150,380 304,880
Effective Tax Savings 20,600 51,500 51,500
Effective Tax Savings (%) 43 26 14

 

These rates are subject to enactment of the Finance Bill 2010. The rates are for the Financial Year 2010-11.



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CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:20

INCOME TAX RATES

 

 

1.1 For Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals

(a) In the case of a resident woman below the age of 65 years, the basic exemption limit is INR 190,000

(b) In the case of a resident individual of the age of 65 years or above, the basic exemption limit is INR 240,000

(c) Surcharge is not applicable

(d) Education cess is applicable @ 3 percent on income-tax

 

Tax Slab For Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals are as follows:-

 

Total Income Tax Rates
Up to INR 160,000 (a)(b) NIL
INR 160,001 to INR 500,000 10%
INR 500,001 to INR 800,000 20%
INR 800,001 and above(c) 30%

 

 

 

 

 

 

 

1.2 For Co-operative Societies

 

Total Income Tax rates
Up to INR 10,000

 

 

10%
INR 10,001 to INR 20,000

 

 

20%
INR 20,001 and above

 

 

30%

 

On the above, surcharge is not applicable. Education cess is applicable @ 3 percent on income-tax.

 

 

1.3 For Local Authorities

Local Authorities are taxable @ 30 percent. Surcharge is not applicable. Education cess is applicable @ 3 percent on income-tax.

 

1.4 For Firms [(including Limited Liability Partnership (LLP)]

  1. Firms (including LLP) are taxable @ 30 percent
  2. Surcharge is not applicable
  3. Education cess is applicable @ 3 percent on income-tax.

 

1.5 For Domestic Companies

  1. Domestic companies are taxable @ 30 percent
  2. Special method for computation of total income of insurance companies. The rate of tax on profits from life insurance business is 12.5 percent
  3. Surcharge is applicable @ 7.5 percent if total income is in excess of INR 10,000,000. Marginal relief may be available
  4. Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).

 

1.6 For Foreign Companies

  1. Foreign companies are taxable @ 40 percent
  2. Surcharge is applicable @ 2.5 percent if total income is in excess of INR 10,000,000.Marginal relief may be available
  3. Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).




CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:27

MINIMUM ALTERNATE TAX

 

  1. Minimum Alternate Tax (MAT) is levied @ 18 percent of the adjusted book profits in the case of those companies where income-tax payable on the taxable income according to the normal provisions of the Income-tax Act, 1961 (the Act), is less than 18 percent of the adjusted book profits.
  2. MAT credit is available for 10 years
  3. Surcharge is applicable @ 7.5 percent in the case of domestic companies if the adjusted book profits are in excess of INR 10,000,000. Marginal relief may be available
  4. Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).
     



CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:29

 

SERVICE TAX RATES

 

 

 

Securities Transaction Tax (STT) is levied on the value of taxable securities transactions as under:

 

Transaction Rates Payable By
Purchase/Sale of equity shares, units

 

of equity oriented mutual fund

(delivery based)

0.125% Purchaser /

 

Seller

Sale of equity shares, units of equity

 

oriented mutual fund (non –delivery

based)

0.025% Seller
Sale of an option in securities 0.017% Seller
Sale of an option in securities, where

 

option is exercised

0.125% Purchaser
Sale of a futures in securities 0.017% Seller
Sale of unit of an equity oriented fund

 

to the Mutual Fund

0.25% Seller





CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:30

WEALTH TAX RATES

 

 

Wealth tax is imposed @ 1 percent on the value of specified assets held by the taxpayer on the valuation date (31 March) in excess of the basic exemption of INR 3,000,000.



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CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:32

DIVIDEND DISTRIBUTION TAX

 

 

  1. Dividend distributed by an Indian Company is exempt from income-tax in the hands of many shareholders. The Indian Company is liable to pay Dividend Distribution Tax (DDT) @ 16.609 percent (i.e. inclusive of surcharge and education cess) on such dividends
  2. The amount of dividend declared by the parent company (i.e. holding more than 50 percent of capital) is likely to be reduced by the amount of dividend received from its subsidiary company for the purposes of computing DDT payable by the parent company if:

-     such dividend is received from its subsidiary

-     the subsidiary has paid DDT on such dividend; and

-     the parent company is not a subsidiary of any other company

 

Further, dividend paid to any person for and on behalf of New Pension System Trust is likely to be reduced.

 

  • Income received by unit holders from a Mutual Fund is exempt from income-tax. The Mutual Fund (other than equity oriented mutual fund) is likely to pay income distribution tax of:

-    27.681 percent (inclusive of surcharge and education cess) on income distributed by a money market mutual fund or a liquid fund

- 13.841 percent (inclusive of surcharge and education cess) on income distributed to any person being an individual or a Hindu Undivided Family by a fund other than a money market mutual fund or a liquid fund; and

- 22.145 percent (inclusive of surcharge and education cess) on income distributed to any other person by a fund other than a money market mutual fund or a liquid fund.




CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:34

SPECIAL RATES FOR NON-RESIDENTS

 

 

 

 

(1) The following incomes in the case of non-resident are taxed at special rates on gross basis:

 

 

Nature of Income Rate(a)
Dividend(b) 20%
Interest received on loans given

 

in foreign currency to Indian

concern or Government of India

20%
Income received in respect of

 

units purchased in foreign

currency of specified Mutual

Funds / UTI

20%
Royalty or fees for technical

 

services

For Agreements entered into:

 

- After 31 May 1997 but before

1 June 2005 – @ 20%

- After 1 June 2005 – @ 10%

Interest on FCCB, FCEB /

 

Dividend on GDRs(b)

10%

(a) These rates may further increase by surcharge and education cess

(b) Other than dividends on which DDT has been paid

(c) In case the non-resident has a Permanent Establishment (PE) in India and the royalty/fees for technical services paid is effectively connected with such PE, the same could be taxed @ 40 percent (plus surcharge and education cess) on net basis

(2) Tax on non-resident sportsmen or sports association on specified income @ 10 percent plus applicable surcharge and education cess.
 




CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:36

CAPITAL GAINS

 

 

     

 

Particulars Short-term capital gains tax rates(a) Long-term

 

capital gains

tax rates(a)

Sale transactions of equity shares / unit of an equity oriented fund which attract

 

STT

15% Nil

 

Sale transaction other than mentioned above:

 

Individuals (resident and non-residents) Progressive slab rates 20% / 10%(b)
Firms including LLP

 

(resident and non-resident)

30%
Resident Companies 30%
Overseas financial

 

organisations specified in section 115AB

40% (corporate)

 

30% (no corporate)

10%
FIIs 30% 10%
Other Foreign Companies 40% 20% / 10%
Local authority 30% 20% / 10%(b)
Co-operative Society Progressive slab rates

(a) These rates may further increase by applicable surcharge and education cess.

(b) 20 percent with indexation and 10 percent without indexation (for units/ zero coupon bonds)
 



Total thanks : 1 times



CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:37

PRESUMPTIVE TAXATION

 

 

(1) In the case of a non-resident taxpayer

 

Business Rate at which income is

 

presumed

Shipping(b) 7.5% of gross receipts
Exploration of mineral oil (b)(c) 10% of gross receipts
Operations of Aircraft (b) 5% of gross receipts
Turnkey power projects (b)(c) 10% of gross receipts

(2) All resident taxpayers

 

Business Rate at which income is

 

presumed

(i) Small Business

 

[excluding (ii)](a)(b)(c)(d)

8% of gross turnover/receipts
(ii) Plying, leasing or hiring of trucks (person should not

 

own over 10 goods carriage at any time during the previous year)(b)(c)

INR 5,000 per month/ part of month for each heavy goods vehicle.

 

INR 4,500 per month/ part of month for each light goods vehicle.

(a) The gross receipts of the taxpayer do not exceed INR 6,000,000

(b) All deductions/expenses (including depreciation) shall be deemed to have been allowed

(c) The taxpayer can claim lower profits, if he keeps and maintains specified books of accounts and obtains a tax audit report

(d) Applicable to Individuals, Hindu Undivided Families and Firm – excludes LLP, tax payer availing deduction under Section 10A, Section 10AA, Section 10B,  Section 10BA or Chapter VI-A(C) of the Act.

(3) Special code of tonnage tax on income earned by domestic shipping companies.




CA Dhiraj Ramchandani
CA, M. com

[ Scorecard : 10661]
Posted On 22 March 2010 at 17:39

Friends the source here is TAX GURU



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