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
 ALSO READ
S.NO. INCOME TAX SLAB
INCOME TAX CALCULATORS
1. Income Tax Slabs for FY 2016-17 / AY 2017-18
2. Income Tax Slab for FY 2015-16 AY 2016-17
3. Income Tax Slab for FY 2014-15 AY 2015-16
4.
5.  Income tax Slab for FY 2012-13 / AY 2013-14 Income Tax Calculator FY 2012-13 / AY 2013-14
6. Income tax calculator for FY 2006-07 to FY 2016-17
7. Income Tax Slab Rates from AY 1992-93 to AY 2015-16

More Under Income Tax

0 Comments

  1. Santosh says:

    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

  2. Mahesh Borkar says:

    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

  3. sandeep says:

    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?

  4. rajiv kumar says:

    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!

  5. Raghunath K Iyer says:

    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

  6. Amol says:

    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

  7. Juhi says:

    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.

  8. Pir says:

    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

  9. vaibhav says:

    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

  10. CHIDAMBAR says:

    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

  11. neeraj pandey says:

    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.

  12. priyanka c says:

    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.

  13. VINOD says:

    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.

  14. binoy says:

    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?

  15. Aditya Sakpal says:

    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.)

  16. Shiv Kumar says:

    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

  17. Rathod says:

    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 ???

  18. TARUN PAL says:

    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.

  19. Sumit says:

    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.

  20. Jogindar Sud says:

    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?

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

June 2021
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930