Applicable for december 2011 exams

TAXATION

Updates applicable for December 2011 Exams

Direct Taxes (Income Tax & Wealth Tax):

A. Amendments made by the Finance Act, 2010

(1) Tax Rates:

(a) In the case of every individual or Hindu undivided family or association of persons or body of individuals or every artificial juridical person:

Upto Rs. 1,60,000

Rs.1,60,000 to Rs. 5,00,000

Rs. 5,00,000 to Rs. 8,00,000

Rs. 8,00,000 and above

Nil

10 % of the amount in excess of Rs.1,60,000

Rs. 34,000 plus 20 per cent of the amount in excess of Rs.5,00,000

Rs. 94,000 plus 30 % of the amount in excess of Rs. 8,00,000.

(b) In the case of every individual, being a woman resident in India, and below the age of sixty-five years at any time during the previous year,

Upto Rs. 1,90,000

Rs.1,90,000 to Rs. 5,00,000

Rs. 5,00,000 to Rs. 8,00,000

Rs. 8,00,000 and above

Nil

10 % of the amount in excess of Rs.1,90,000

Rs. 31,000 plus 20 per cent of the amount in excess of Rs.5,00,000

Rs. 91,000 plus 30 % of the amount in excess of Rs. 8,00,000.

(c) In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year:-

Upto Rs. 2,40,000

Rs.2,40,000 to Rs. 5,00,000

Rs. 5,00,000 to Rs. 8,00,000

Rs. 8,00,000 and above

Nil

10 % of the amount in excess of Rs.2,40,000

Rs.26,000 plus 20 per cent of the amount in excess of Rs.5,00,000

Rs.86,000 plus 30 % of the amount in excess of Rs.8,00,000.

(d) In the case of every co-operative society:

(1) where the total income does not exceed Rs. 10,000.

(2) where the total income exceeds Rs.10,000 but does not exceed Rs. 20,000.

(3) where the total income exceeds Rs. 20,000

10 % of the total income;

Rs. 1,000 plus 20% of the amount by which the total income exceeds Rs. 10,000;

Rs. 3,000 plus 30% of the amount by which the total income exceeds Rs. 20,000.

(e) In the case of every firm: On the whole of the total income @ 30%

(f) In the case of every local authority: On the whole of the total income @ 30%

(g) In the case of a company:

(i) In the case of a domestic company @ 30% of the total income.

(ii) In the case of a company other than a domestic company:

(i) on so much of the total income as consists of,:

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved 50 %; by the Central Government

(ii) on the balance, if any, of the total income

50%

40 %

Surcharge on income-tax

(i) in the case of every domestic company having a total income exceeding one crore rupees @ 7.5% of such income-tax;

(ii) in the case of every company other than a domestic company having a total income exceeding one crore rupees @ 2.5%

2. Definition of “charitable purpose”

With retrospective effect from 1^st April 2009, section 2(15) has been amended to provide that “the advancement of any other object of general public utility” shall continue to be a “charitable purpose” if the total receipts from any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business do not exceed Rs.10 lakhs in the previous year.

3. Definition of Income u/s 2(24):

Clause (xv) of section 2(24) relating to definition of income has been amended to include value of property referred to in clause (viia) of section 56(2) in the meaning of Income.

for more amendments ................click : https://www.icsi.edu/Student/tabid/528/Default.aspx