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INCOME-TAX
Salary is the main source for Government employees, it includes all kinds of pay, dearness allowance, overtime allowance, bonus, leave salary, advance pay, all allowances, pay for rent free accommodation, pension, interim relief, house rent allowance and contribution of NPS. And following the items does not includes such as Children Education allowance, Hostel subsidy and Transport allowance.
Need not filing of Income Tax whose total income exceeds 5 lakh
Individuals, Hindu undivided families, AOPs, BOIs - The tax rates applicable to individuals are also applicable to a Hindu undivided family, an association of persons, body of individuals or an artificial juridical person. The rates applicable for the assessment years 2011-12, 2012-13 and 2013-14 are as follows :
ASSESSMENT YEAR 2013-14
Tax rates for the financial year 2012-13 are given below – Tax Rates for Individuals
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 2,00,000 | Nil | Nil | Nil |
| Rs. 2,00,001 - Rs. 5,00,000 | 10% of income exceeding Rs. 2,00,000 | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 10,00,000 | Rs. 30,000 + 20% of income exceeding Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 10,00,001 | Rs. 1,30,000 + 30% of income exceeding Rs. 10,00,000 | 2% of income-tax | 1% of income-tax |
Tax Rates for Senior Citizens (60 years and above but less than eighty years…)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil | Nil |
| Rs. 2,50,001 - Rs. 5,00,000 | 10% of income exceeding Rs. 2,50,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 10,00,000 | Rs. 25,000 + 20% of income exceeding Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 10,00,001 | Rs. 1,25,000 + 30% of income exceeding Rs. 10,00,000 | 2% of income-tax | 1% of income-tax |
Tax rates for Very Senior Citizens (80 years or above…)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 5,00,000 | Nil | Nil | Nil |
| Rs. 5,00,001 - Rs. 10,00,000 | 20% of income exceeding Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 10,00,001 | Rs. 1,00,000 + 30% of income exceeding Rs.10,00,000 | 2% of income-tax | 1% of income-tax |
Note: The aggregate of deduction under sections 80C, 80CCC and 80CCD(I) should not exceed one lakh rupees.
(A sum of Rs.50,000 special deduction for physically handicapped resident persons and Rs.1,00,000 for severe disability persons.)
ASSESSMENT YEAR 2012-13
Tax rates for the assessment year 2012-13 are given below-
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 1,80,000 | Nil | Nil | Nil |
| Rs.1,80,001 - Rs. 5,00,000 | 10% of (total income minus Rs. 1,80,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 8,00,000 | Rs. 32,000 + 20% of (total income minus Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 92,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
For a resident woman (who is below 60 years on the last day of the previous year, i.e., born on after April 1, 1952)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 1,90,000 | Nil | Nil | Nil |
| Rs.1,90,001 - Rs. 5,00,000 | 10% of (total income minus Rs. 1,90,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 8,00,000 | Rs. 31,000 + 20% of (total income minus Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 91,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
For a resident senior citizen (who is 60 years or more at any time during the previous year but not more than 80 years on the last day of the previous year, i.e., born during April 1, 1932 and March 31, 1952)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil | Nil |
| Rs.2,50,001 - Rs. 5,00,000 | 10% of (total income minus Rs. 2,50,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 8,00,000 | Rs. 25,000 + 20% of (total income minus Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 85,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 1, 1932)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 5,00,000 | Nil | Nil | Nil |
| Rs.5,00,001 - Rs. 8,00,000 | 20% of (total income minus Rs. 5,00,000) | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 60,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
ASSESSMENT YEAR 2011-12
Tax rates for the assessment year 2011-12 are given below-
For any other individual, (i.e., born on or after April 1, 1946), every HUF/AOP/BOI/artificial juridical person –
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 1,60,000 | Nil | Nil | Nil |
| Rs.1,60,001 - Rs. 5,00,000 | 10% of (total income minus Rs. 1,60,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 8,00,000 | Rs. 34,000 + 20% of (total income minus Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 94,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
For a resident woman (who is below 65 years on the last day of the previous year, i.e., born on or after April 1, 1946)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 1,90,000 | Nil | Nil | Nil |
| Rs. 1,90,001 - Rs. 5,00,000 | 10% of (total income minus Rs. 1,90,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 8,00,000 | Rs. 31,000 + 20% of (total income minus Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 91,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
For a resident senior citizen (who is 65 years or more at any time during the previous year, i.e., born before April 1, 1946)
| Net income range | Income-tax rates | Education cess | Secondary and higher education cess |
|---|---|---|---|
| Up to Rs. 2,40,000 | Nil | Nil | Nil |
| Rs. 2,40,001 - Rs. 5,00,000 | 10% of (total income minus Rs. 2,40,000) | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,001 - Rs. 8,00,000 | Rs. 26,000 + 20% of (total income minus Rs. 5,00,000 | 2% of income-tax | 1% of income-tax |
| Above Rs. 8,00,001 | Rs. 86,000 + 30% of (total income minus Rs. 8,00,000 | 2% of income-tax | 1% of income-tax |
Notes:
1. Surcharge – Nil
2. Education cess - It is 2 per cent of income-tax.
3. Secondary and higher education cess - It is 1 per cent of income-tax.
Tax rates specified in the Income-tax Act
The following incomes are taxable at the rates specified by the Income-tax Act as follows...
| Section | Income | Income-tax rates |
|---|---|---|
| (1) | (2) | (3) |
| 111A | Short-term capital gains | 15 |
| 112 | Long-term capital gains | 20 |
| 115A(1) | Dividend received by a foreign company or a non-resident(a)(i) non-corporate assessee [*it is not applicable in the case of dividends referred to in section 115-O] | 20* |
| 115A(1) | Interest received by a foreign company or a non-resident(a)(ii) non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency | 20 |
| 115A(1) | Interest received from an infrastructure debt fund referred (a)(iia) to in section 10(47) (applicable from June 1, 2011, i.e.,assessment year 2012-13) | 5 |
| 115A | Royalty or fees for technical services received by a foreign company or non- | - |
| (1)(b) | resident non-corporate assessee from an Indian concern or Government in pursuance of an agreement approved by the Central Government and made after— a. March 31, 1976 but before June 1, 1997 b. May 31, 1997 but before June 1, 2005 c. May 31, 2005 | 30 20 10 |
| 115AB | Income of an overseas financial organisation on transfer of units purchased in foreign currency being long-term capital gains | 10 |
| 115AC | Income from bonds or Global Depository Receipts 1 or on bonds or Global Depository Receipts1 of a public sector company sold by the Government and purchased in foreign currency or long-term capital gains arising from their transfer *[not applicable in the case of dividends referred to in section 115-O] | 10* |
| 115ACA | Income from Global Depository Receipts held by a resident individual who is an employee of an Indian company engaged in information technology software/services** • Dividend [other than dividend referred to in section 115-O] on global Depository Receipts issued under employees stock option scheme and purchased in foreign currency • Long-term capital gain on transfer of such receipts | 1010 |
| 115AD | Income in respect of listed securities received by a Foreign Institutional Investor as specified2 by the Government • Short-term capital gain covered by section 111A • Any other short-term capital gain • Long-term capital gain • Other income [*not applicable in the case of dividends referred to in section 115-O] | 15 30 10 20* |
| 115B | Profits and gains of life insurance business | 12.5 |
| 115BB | Winnings from lotteries, crossword puzzles, or race including horse race (not being income from the activity of owning and maintaining race horse) or card game and other game of any sort or from gambling or betting of any form or nature | 30 |
| 115BBA | Income of a non-resident foreign citizen sportsman for participation in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sport association by way of guarantee money | 10 |
| 115BBC | Anonymous donation | 30 |
| 115BBD | Income of an Indian company by way of dividends declared, distributed or paid by a specified foreign company (in which the Indian company holds 26 per cent or more of equity shares capital) (applicable from the assessment year 2012-13) | 15 |
| 115E | Income from foreign exchange assets and capital gains of non-resident Indian a. income from foreign exchange asset [*not applicable in the case of dividends referred to in section 115-O] b. long-term capital gain | 20* 10 |
| 115JB | Tax on book profits of certain companies - Assessment year 2011-12 - Assessment year 2012-13 | 18% 18.5% |
| 115JC | Alternate minimum tax in the case of limited liability partnerships (applicable from the assessment year 2012-13) | 18.5 |
| 161(1A) | Profits and gains of a business in the case of a trust | 30 |
| 164 | Income of private discretionary trust where shares of beneficiaries are indeterminate | 30 |
| 164A | Income of an oral trust | 30 |
| 167A | Income of a firm | 30 |
| 167B | Income of an association of persons or body of individuals if shares of members are unknown | 30 |
| 167B(2) | Income of an association of persons or body of individuals if total income of any member (excluding share from the association or body) exceeds the maximum amount not chargeable to tax [*if total income of any member of the association or body is chargeable to tax at a rate higher than 30.9 per cent, then tax shall be charged on that portion of the total income of the association/body which is relatable to the share of such member at such higher rate and the balance of the total income is taxable at a rate of 30.9 per cent] |
