Income tax rates
These rates are subject to enactment of the Finance Bill 2012. The rates are for the previous Year 2012-13:
1. Income Tax Rates
1.1 For Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals
| Total Income | Tax Rates |
| Upto Rs. 200,000* | Nil |
| 200,001 to 500,000 | 10% |
| 500,001 to 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
*In the case of a resident individual of sixty years or more but less than eighty years, the basic exemption limit is INR 250,000
The category of women below the age of 65 years has been removed.
In the case of a resident individual of the age of eighty years or above,
| Total Income | Tax Rates |
| Upto Rs. 500,000* | Nil |
| 500,001 to 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Surcharge is Nil
Education cess is applicable @ 3 percent on income tax
Marginal relief may be available.
1.2 For Partnership Firms
• Partnership Firms are taxable @ 30 percent
• Surcharge is Nil
• Education cess is applicable @ 3 percent on income tax
1.3For Domestic Companies
• Domestic companies are taxable @ 30 percent
• Surcharge is applicable @ 5 percent if total income is in excess of INR 10,000,000
• Education cess is applicable @ 3 percent on income tax (inclusive of surcharge, if any)
1.4 For Foreign Companies
• Foreign companies are taxable @ 40 percent
• Surcharge is applicable @ 2 percent if total income is in excess of INR 10,000,000
• Education cess is applicable @ 3 percent on income tax (inclusive of surcharge, if any)
If i have to pay salary Rs. 30000/- for the month of May 2012 what amount of TDS be deducted from the salary of Employee. Please give me an example with solving the solution.