8 Replies
nitin suvarna
(C.A FINAL)
(828 Points)
Replied 29 August 2011
SLAB RATES FOR A.Y 11-12 WILL BE APPLICABLE
Amit Gupta
(Loosening Myself)
(1508 Points)
Replied 29 August 2011
| Originally posted by : nitin suvarna | ||
 |
SLAB RATES FOR A.Y 11-12 WILL BE APPLICABLE |
 |
hese 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.
CALTON DENNIS
(Article Assistant)
(147 Points)
Replied 29 August 2011
thanks a lot amit its really usefull for Nov 2011 exams
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