In respect of rates of tax, the following changes have been proposed in the Finance Bill, 2010:

  • Basic exemption limit remains the same. The slab for 10% tax has been revised to Rs. 5,00,000/- from the existing Rs. 3,00,000/- in case of Individuals, HUFs, AOPs and BOIs.
  • Surcharge of 10% applicable to domestic companies has been reduced to 7.5%. There is no change in the rate of surcharge of 2.5% in case of foreign companies.
  • There is no change in tax rates of Firms, Domestic Companies, Companies other than Domestic Companies and Co-operative Societies.
  • There is no change in rates of Educational Cess, Secondary & Higher Secondary Cess and its applicability.
  • Rate of Minimum Alternate Tax in case of Companies is proposed to be increased from 15% (effective 16.995% with surcharge and cess) to 18% (effective 19.9305% with surcharge and cess).
  • Rate of Dividend Distribution Tax remains same.
  • Rates of Securities Transaction Tax and its applicability remains the same.
  • There is no change in the threshold limit and rate of wealth tax.
  • Threshold limits in case of various provisions of Tax Deduction at Source have been changed.

The proposed income tax rates (including surcharge, Education Cess and Secondary and Higher Secondary Cess) for the A.Y. 2011-12 have been given in Table 1 in the Annexure for ready reference. These income tax rates are applicable on any income earned during the period from 1st April 2010 to 31st March 2011.

The rates of Dividend Distribution Tax, Securities Transaction Tax & Wealth Tax are given in Table 2 in the Annexure.

The rates of Wealth tax is contained in Table 3 in the Annexure.

TABLE – 1

ParticularsThreshold
limit for
Surcharge
Tax Rates
Without SurchargeWith
Surcharge
Individual, HUF, AOP & BOINIL
Upto Rs. 160000NilN.A.
Rs. 160001 to Rs. 190000 *10.30%N.A.
Rs. 190001 to Rs. 240000 **10.30%N.A.
Rs. 240001 to Rs. 50000010.30%N.A.
Rs. 500001 to Rs. 80000020.60%N.A.
Rs. 800001 onwards30.90%N.A.
* “Nil” tax rate in case assessee is resident Senior Citizen or resident Women below age of 65 years
** “Nil” tax rate in case assessee is resident Senior Citizen
Partnership FirmNIL30.90%N.A.
Domestic Company1,00,00,00030.90%33.22%
Company other than Domestic Company1,00,00,00041.20%42.23%
Local AuthorityNIL30.90%N.A.
Co-operative SocietyNIL
Upto Rs. 1000010.30%N.A.
Rs. 10001 to Rs. 2000020.60%N.A.
Rs. 20001 onwards30.90%N.A.
Minimum Alternate Tax
Domestic Company1,00,00,00018.54%19.93%
Company other than Domestic Company1,00,00,00018.54%19.00%
STCG on Listed Securities
Individual, HUF,AOP & BOINIL15.45%N.A.
Partnership FirmNIL15.45%N.A.
Domestic Companies1,00,00,00015.45%16.61%
Company other than Domestic Company1,00,00,00015.45%15.84%
STCG on assets other than listed securities
Individual, HUF,AOP & BOINILAs per slabAs per slab
Partnership FirmNIL30.90%N.A.
Domestic Companies1,00,00,00030.90%33.22%
Company other than Domestic Company1,00,00,00041.20%42.23%
LTCG on assets other than Listed Securities
Individual, HUF,AOP & BOINIL20.60%N.A.
Partnership FirmNIL20.60%N.A.
Domestic Companies1,00,00,00020.60%22.15%
Company other than Domestic Company1,00,00,00020.60%21.12%

TABLE – 2

ParticularsTax Rates
Dividend Distribution Tax
By Domestic Company16.61%
By Money Market Mutual Fund or Liquid Fund27.68%
By Other Mutual Funds- For income distributed to Individual / HUF13.84%
– For income distributed to others22.15%
Securities Transaction Tax
Delivery based purchased of an Equity Share in Company or a Unit of an Equity Oriented Fund0.125%
Delivery based sale of an Equity Share in Company or a Unit of
Equity Oriented Fund0.125%
Non-Delivery based sale of an Equity Share in Company or a Unit of
Equity Oriented Fund0.025%
Derivatives (Future & Options)0.017%
Sale of an option in securities where option is exercised0.125%
Repurchase of Units of an Equity Oriented Fund0.250%

TABLE – 3

Wealth TaxThreshold
limit
Tax Rate
For every individual, HUF and Company30,00,0001%

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Tags : Budget 2010 (166) Income Tax Rates (45)

0 responses to “Tax rate of Income Tax, Dividend Distribution, STT, Wealth, MAT & Special Income – A.Y. 2011-12”

  1. ajay says:

    At what rate dividend distribution tax should be paid by PVT.LTD COMPANY TO PAY DIVIDEND TO ITS SHARE HOLDER

  2. PREMA KUMAR says:

    Dividend tax rate for the financial year-2010-11.Is surcharge will applicable.Reply

  3. Adarsh S says:

    Sir pls sednd the tax rate of Rs:400000/-

  4. AJAY GARG says:

    IF I RECORD PROPOSED DIVIDEND AS ON 31.03.2010 THAN WHAT RATE OF SURCHARGE WILL BE APPLICABLE BECAUSE FINAL DIVIDEND WILL BE DECLARED AT THE TIME OF AGM DATED 30.09.2010.

    SO, MY QUERY IS THAT WHAT DIVIDEND DISTRIBUTION TAX RATE SHOULD I FOLLOW,

  5. bala says:

    sir

    i want to divident tax rates for rs.800000/-

  6. K.M.N.MURTHY says:

    If the total income (taxable income) of the Company is less than Rs. 100 lakhs, is surcharge of 7.50% applicable on distributed dividend?

  7. jb says:

    What does the additional STT on the following category mean exactly? is it a higher tax rate for short term repurchase or an ETF or MF? And, if so what is the short term period for which this applies?

    “Repurchase of Units of an Equity Oriented Fund”

  8. adib narang says:

    How much interest on Fixed Deposits is tax Free in India?

  9. Jignesh shah says:

    can u send me above table in excel at my email id

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