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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
| Particulars | Threshold limit for Surcharge |
Tax Rates | |
| Without Surcharge | With Surcharge |
||
| Individual, HUF, AOP & BOI | NIL | ||
| Upto Rs. 160000 | Nil | N.A. | |
| Rs. 160001 to Rs. 190000 * | 10.30% | N.A. | |
| Rs. 190001 to Rs. 240000 ** | 10.30% | N.A. | |
| Rs. 240001 to Rs. 500000 | 10.30% | N.A. | |
| Rs. 500001 to Rs. 800000 | 20.60% | N.A. | |
| Rs. 800001 onwards | 30.90% | 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 Firm | NIL | 30.90% | N.A. |
| Domestic Company | 1,00,00,000 | 30.90% | 33.22% |
| Company other than Domestic Company | 1,00,00,000 | 41.20% | 42.23% |
| Local Authority | NIL | 30.90% | N.A. |
| Co-operative Society | NIL | ||
| Upto Rs. 10000 | 10.30% | N.A. | |
| Rs. 10001 to Rs. 20000 | 20.60% | N.A. | |
| Rs. 20001 onwards | 30.90% | N.A. | |
| Minimum Alternate Tax | |||
| Domestic Company | 1,00,00,000 | 18.54% | 19.93% |
| Company other than Domestic Company | 1,00,00,000 | 18.54% | 19.00% |
| STCG on Listed Securities | |||
| Individual, HUF,AOP & BOI | NIL | 15.45% | N.A. |
| Partnership Firm | NIL | 15.45% | N.A. |
| Domestic Companies | 1,00,00,000 | 15.45% | 16.61% |
| Company other than Domestic Company | 1,00,00,000 | 15.45% | 15.84% |
| STCG on assets other than listed securities | |||
| Individual, HUF,AOP & BOI | NIL | As per slab | As per slab |
| Partnership Firm | NIL | 30.90% | N.A. |
| Domestic Companies | 1,00,00,000 | 30.90% | 33.22% |
| Company other than Domestic Company | 1,00,00,000 | 41.20% | 42.23% |
| LTCG on assets other than Listed Securities | |||
| Individual, HUF,AOP & BOI | NIL | 20.60% | N.A. |
| Partnership Firm | NIL | 20.60% | N.A. |
| Domestic Companies | 1,00,00,000 | 20.60% | 22.15% |
| Company other than Domestic Company | 1,00,00,000 | 20.60% | 21.12% |
TABLE – 2
| Particulars | Tax Rates |
| Dividend Distribution Tax | |
| By Domestic Company | 16.61% |
| By Money Market Mutual Fund or Liquid Fund | 27.68% |
| By Other Mutual Funds- For income distributed to Individual / HUF | 13.84% |
| – For income distributed to others | 22.15% |
| Securities Transaction Tax | |
| Delivery based purchased of an Equity Share in Company or a Unit of an Equity Oriented Fund | 0.125% |
| Delivery based sale of an Equity Share in Company or a Unit of | |
| Equity Oriented Fund | 0.125% |
| Non-Delivery based sale of an Equity Share in Company or a Unit of | |
| Equity Oriented Fund | 0.025% |
| Derivatives (Future & Options) | 0.017% |
| Sale of an option in securities where option is exercised | 0.125% |
| Repurchase of Units of an Equity Oriented Fund | 0.250% |
TABLE – 3
| Wealth Tax | Threshold limit |
Tax Rate |
| For every individual, HUF and Company | 30,00,000 | 1% |
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At what rate dividend distribution tax should be paid by PVT.LTD COMPANY TO PAY DIVIDEND TO ITS SHARE HOLDER
Dividend tax rate for the financial year-2010-11.Is surcharge will applicable.Reply
Sir pls sednd the tax rate of Rs:400000/-
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,
sir
i want to divident tax rates for rs.800000/-
If the total income (taxable income) of the Company is less than Rs. 100 lakhs, is surcharge of 7.50% applicable on distributed dividend?
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”
How much interest on Fixed Deposits is tax Free in India?
can u send me above table in excel at my email id