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 | ||||
Dear sir
Required Educational Trust Income tax slab
Manju
sir, what is the limit of tax of Femail in A.Y 11-12
Read care fully all the clauses of the aforesaid circular.
CA. Subhash Chandra Podder
30/12/11
Could you please let me know whether for sr citizen working as consultant, conveyance, telephone etc for official purpose is taxable?
Hi,
I wish to know what would be tax rate(s) on processing of labour contractors payment.
Thanks in advance.
Hari
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
interest recieved on deposits, is taxable or not for the assesment year 2011-2012 ?
Dear Sir,
How much interest income is chargeable for tax ( Rent on Flat or Fixed Deposit )etc.
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?
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
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?
how is wealth tax related to provision of OBC certificate
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!
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
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
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.
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
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.
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
sir,
is any kind of tax (i.e service tax)applicable for jobworker?.This is a partnership firm.
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
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.
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.
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.
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?
Is there any change in the slab of WEALTH TAX (30Lakhs or 1 Crore) ?
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.)
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
Is that possible to calculate depreciation on Co operative housing societies?
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 ???
how many rate of depreciation on Solar Water Systems (f.Y. 2010-2011)
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.
there r no such scenarios
IF ARMY PERSON EARN INCOME IN OUTSIDE INDIA, THE INCOME IS TAXABLE OR NOT 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.
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?