Tax rate applicable for A.Y. 2011-12 on Income, Dividend, Wealth, MAT, STT, Capital Gain and Presumptive Income
- Saturday, March 20, 2010, 13:04
- Income Tax
- Articles, Featured
These rates are subject to enactment of the Finance Bill 2010. The rates are for the Financial Year 2010-11.
1. 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)]
- Firms (including LLP) are taxable @ 30 percent
- Surcharge is not applicable
- Education cess is applicable @ 3 percent on income-tax.
1.5 For Domestic Companies
- Domestic companies are taxable @ 30 percent
- Special method for computation of total income of insurance companies. The rate of tax on profits from life insurance business is 12.5 percent
- Surcharge is applicable @ 7.5 percent if total income is in excess of INR 10,000,000. Marginal relief may be available
- Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).
1.6 For Foreign Companies
- Foreign companies are taxable @ 40 percent
- Surcharge is applicable @ 2.5 percent if total income is in excess of INR 10,000,000.Marginal relief may be available
- Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).
2. Minimum Alternate Tax
- 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.
- MAT credit is available for 10 years
- 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
- Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).
3. Securities Transaction Tax
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 |
4. Wealth Tax
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.
5. Dividend Distribution Tax
- 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
- 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.
6. 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.
7. 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)
8. 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.
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 | ||||
Related posts:
- Income tax slab for FY 2010-11 / A.Y. 2011-12
- Budget 2010-11: Income of a non-resident providing services or facilities in connection with prospecting for, or extraction or production of, mineral oil
- Budget 2010-11: Change in Income tax provisions on Conversion of a private company or an unlisted public company into a LLP
- New Income tax slabs for Individual, Senior Citizens, and females HUF, Firms, Companies and others as amended by budget 2010
- Budget 2010-11 -Additional deduction for individuals in respect of long-term infrastructure bonds under section 80CCF of Income-tax Act
What is the tax liability for a person who was NRI and later became citizen of another country when he inherits moveable and immoveable assets in India?
The surcharge is applicable on domestic if net profit is more than Rs. 1 crore or if the total income of the company is more than Rs. 1 crore.
IF ARMY PERSON EARN INCOME IN OUTSIDE INDIA, THE INCOME IS TAXABLE OR NOT IN INDIA?
there r no such scenarios
calculation of interest or penality charges for late payment of service tax.SERVICE TAX AMT.1196572 AND EDUCATION CESS
AMT.35954.Payment made on 12th of the month.
how many rate of depreciation on Solar Water Systems (f.Y. 2010-2011)
WHAT IS THE TAX TREATMENT FOR GAINS MADE FROM SHARE MARKET IN SHORT TERM… PLEASE DETAIL
ARE V ELIGIBLE FOR BASIC EXEMPTION OF 1LAKH AND LATER OF 1.6/1.9 LAKHS AND PAY TAX FOR PROFITS ABOVE 2.6 / 2.9 LAKHS ???
Is that possible to calculate depreciation on Co operative housing societies?
Please Tell me to RATE OF VAT, CST TDS,SERVICE TAX AND INTEREST RATE ON TDS, SRVICE TAX.Delhi/Haryana
Department
Thanking you
With Regard
Shiv
what is the rate of short and long term capital gain.
Pls tell me to the Short term & Long term capital gain slab.
(mentioned all over tax rate like share,Flat Purchase & sale etc.)
short term capatial gain tax rat is 30%
long term capital gain tax rate is 15 %
same tax is applicable as per income tax in india.
Is there any change in the slab of WEALTH TAX (30Lakhs or 1 Crore) ?
I have a rental property rented to a company, monthly Rs. 25000, they started deducting TRS 10% (Rs. 2500 from my rent)from April onwards. They said they will give a tax doc at the end of the tax year. Is that a new tax rule?
You dont have a rental problem. You have a mental problem!
No sir. Wealth tax is like b**b size. Rarely increases!
On Woman Sr.citizen, received money against sale of her house. She wish to give money to her married daughter, if there any problem of tax or any other problem of legal heirs? She is ready to make will to give her total property to her married daughter.
hi all plz help me, i have an annual income of 356000, please let me know how should i calculate tds on my salary, and how much investment do i need to show to save the tax, and how, a genuine and kind reply needed urgently.
Thanks And Take Care.
hai mam tds on ur salary 192B sec i no idea present tds rates u takecare of ds and u can save tax by way of loan those r resonables its claim by 80c deduction
hi priyanka in response to ur query i would like to ask u certain questions
this salary is for the year ended on 31.3.2011 or u r going to receive it in the current financial year 2011-2012
anyways for now assuming that u have already recd the salary for the last year @ 356000 the tax applicability will be as follows
upto 190000 no tax
thereafter 10%
so to calculate in ur case
356000-190000
166000 * 10/100
16600 tax due
now if u have a investment of say 100000
356000-100000-190000
66000 * 10/100
6600
so even if u make an investemnt of rs 100000 still the tax payable is 6600
pl feel free to contact me for future queries or filing of returns
CA Suraj Wadhwa 9322964904
Dear sir, i received Rs. 100000/ from LIC maturity value. i wanna know the tax treatment. can i get a relief under income tax act 1961.
SIR, I WOULD LIKE TO KNOW THE LATEST AMENDMENT OF VAT ON RECTIFIER TRANSFORMER AND THE RATE OF TAXES APPLICABLE W.E.F 2011.
CHIDAMBAR
sir,
is any kind of tax (i.e service tax)applicable for jobworker?.This is a partnership firm.
i have to make an fd and banker say that ill be charge tax more than 100000 but in another bank it is charge more than 100000 ,does tax depend upon bank
Yes Professional Tax to be paid subject to minimum Slab of Rs 5000/- Salary and I Tax if income crossess the basic limit of I Tax Slab
LIC Matured not Taxable
Hi
Firstly u have to check out the I tax slab for Women ie 190000 to 500000 Rs 10% Tax+3%
Cess & Hsec= Total income
for saving the Tax u have to Reduce ur Gross income by Investing in LIC, MF, FD ,medilaim policy for which payment is made before 31 march it u dont do such,
now its no possible to u
so u Can Invest in Donation in Such trust as the can issue back dated receipt ie before march 11 and out of that donation u can take 50% deduction of inv amt from gross total income.
if tds is already deducted by ur employer u can claim ur donation in ur final return and cliam for I tax refund
no inheritence is movable but he became citizen of Indian country as per Section 6 of income tax Act 1961
Please let me know amt break up Quarter wise and let me know the status of Firm or Company so that i can help you
its not new tax rule but Rent is Subject to 10% Tax Deduction at the time of Payment.
we will got TDS certificate at the end of yr by ur Landlord and same amt of TDS u would claim as refund if your income is below taxable
if any more difficulty mail me vishalnikam028@gmail.com
Yes
Its TDS deducted by nationalised bank only and not by Co – Op bank
Yes
Its TDS deducted by nationalised bank only generally its not deducted by Co – Op bank
are u crazy guy. you should contact either to a CA or a DoCTOR
Dear Priyanka,
To calculate exact tax on ur salary @360000 . Ur salary slip consists of several heads 1) Basic 2) HRA 3)Conveyance 4)Special allowance 5) Medical bill reimbursements etc. Out of all these components :- HRA / Conveyance (@800rs pm 9600 pa)/Medical bills reimbursements (@1250 pm or 1500pa )are not taxable so reduce them from 356000. for example if HRA is 6000pm (i.e 72000 pa) then reduce from 360000 HRA and Conveyance and med reimb.
356000-72000-9600-15000 = 259400
Now to calculate tax on it assuming it was ur last year’s salary
0-190000 — zero tax
190000-259400 — (69400 @10%) 6940/- + cess3% 208/-
total tax 7148/- rupees
To save tax you may save mone in various instruments like NSC bonds, Insurance policies etc.
For any other query feel free to call 9990311116
Please Let me know do not submit IT return of AY 11-12 whose taxable income below 5 lacs it’s true or not. Help me.
Dear Mr Bikas Sarkar,
Plz go through the following which clarifies your doubt:
To
– Managing Committee Members
– Patron Members
– Promoter Chambers
– Corporate Associates
– Overseas Members
– Ordinary Members
Salaried Taxpayers with total Income up to Rs.5 lakh Exempted from filing Income Tax Return for Assessment Year 2011-12
The Central Board of Direct Taxes has notified the scheme exempting salaried taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year 2011-12, which will be due on July 31, 2011.
Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs.10,000 are not required to file their income tax return. Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No.16.
Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.
The scheme shall also not be applicable in cases wherein notices are issued for filing the income tax return under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act 1961.
This is for information of the members.
D.S. Rawat
Secretary General
—————————————————–
The Associated Chambers of Commerce and Industry of India
ASSOCHAM Corporate Office
1, Community Centre, Zamrudpur, Kailash Colony, New Delhi – 110 048
Tel: 011-46550555 • Fax: 011-46536481 / 82, 46536497 / 98
Website: www. assocham.org
The same was published in all leading english daily of June 24, 2011,
I want to sell a land in yellow zone at cost 1cr i bought it 12 yr before for 1lk by this amount i want to buy property what is the tax and how much i can save
Sir,
I want to know the tax liability of an individual for AY 2011-12 in case that he was resident of India till May 2010 and then settled in another country and earns income there. Does that individual has to pay tax for income earned outside India also. Please advise.
Sir,
I had purchased shares of company in Apil’10 and received dividend 4000 in May’10 and 2000 in Sep’10. Eventually i sold the shares in Feb’11. (short tearm). Do i need to include dividend amount for tax OR there will be no tax on Dividend?
Regds
Amol
My income for ass yr 2011-12 is detailed below:
Interest income 303240
LTCG on shares on which STT paid 112713
Div on shares /mf 131861 Total 547814
Deds on sec 80c/80CCF/80D/80G 128325
Exempt income 244574
Taxable income 173914
Tax payable on 173914-160000 i.e. 13914 @ 10% 1392
Add Ex Cess 42
Total 1434
Is this working correct ? These are calculations based on the normal rates
but while trying filing online, calculations are being done by default on special
rates – why so ?
Can you please elucidate.
Thanks & regards
Raghunath K Iyer
There will be no tax on Dividend
sir,
i made a profit of Rs.22000(other than salary) from stock market in year 2010. Now to file return which form will be suitable for me? If i file through ITR-2 under which section should i show this short term capital gain from share market. I have already paid self assessment tax @30% for this gain.Please help me. Thank you!
how is wealth tax related to provision of OBC certificate
Dear Sir/Mam,
I have purchased plot in Jan 2010 and now planning to sale the same. The profit earned will be used to clear loan on plot and remaining amount in buying flat. Please let me know whether the profit from selling plot will be taxable or not?
1) one person who is partner in partnership firm and got salary of Rs. 2.25 lacs by cheque in the financial year 2010-2011.
2) But in computation of Partnerhship firm Rs. 16000/- amount disallowed and Rs. 2,09,000 amount taxable in hand of partner.
Then what will be effect in partners computation of income who got a salary of Rs. 2.25 lacs. Full amount is taxable or 2.09 lacs amount is taxable
i have business income of Rs100000/- on 31/03/2011 and short term capital gain of rs 100000/- from sale of plot.. how can i calculate tax?
Dear Sir,
How much interest income is chargeable for tax ( Rent on Flat or Fixed Deposit )etc.
interest recieved on deposits, is taxable or not for the assesment year 2011-2012 ?
Isn’t the government forcing people to cheat with the level of taxation??? Just as an example, divident income tax. company has already paid tax before declaring tax. and thn you have another 20% or whatever TDS before the divident reaches the share holder which effectively means more thn 50% of tax!!! S
Hi,
I wish to know what would be tax rate(s) on processing of labour contractors payment.
Thanks in advance.
Hari
Could you please let me know whether for sr citizen working as consultant, conveyance, telephone etc for official purpose is taxable?
Read care fully all the clauses of the aforesaid circular.
CA. Subhash Chandra Podder
30/12/11
sir, what is the limit of tax of Femail in A.Y 11-12