CHANGES IN RATES OF INCOME TAX
In case of Resident Individual (Below 60 years of age) & HUF
Income Level Tax Rate (%)
Upto Rs. 1,80,000/- Nil
Rs. 1,80.001/- to Rs. 5,00,000/- 10%
Rs. 5,00,001/- to Rs. 8,00,000/- 20%
Above Rs. 8,00,000/- 30%
In case of Resident Women (Below 60 years of Age)
Income Level Tax Rate (%)
Upto Rs. 1,90,000/- Nil
Rs. 1,90.001/- to Rs. 5,00,000/- 10%
Rs. 5,00,001/- to Rs. 8,00,000/- 20%
Above Rs. 8,00,000/- 30%
In case of resident Individual ( 60 years of age or more)
Income Level Tax Rate (%)
Upto Rs. 2,50,000/- Nil
Rs. 2,50.001/- to Rs. 5,00,000/- 10%
Rs. 5,00,001/- to Rs. 8,00,000/- 20%
Above Rs. 8,00,000/- 30%
In case of resident Individual ( 80 years of age or more)
Income Level Tax Rate (%)
Upto Rs. 5,00,000/- Nil
Rs. 5,00.001/- to Rs. 8,00,000/- 20%
Above Rs. 8,00,000/- 30%
Note :- 1) The Age Limit for Senior Citizens has been reduced from 65 years to 60 years.
2) New Category of Senior Citizens above age of 80 years is being introduced.
Partnership Firms
In case of Partnership Firms , there is no change in the rate of tax and the firms will continue to be charged at the rate of 30%. No Surcharge is payable.
Companies
In case of Domestic Companies , there is no change in the rate of tax and such companies will continue to be charged at the rate of 30%. However the rate of Surcharge has been reduced from 7.5% to 5% in case of Companies with Total Income exceeding Rs. 1 Crore.
In respect of all category of assesses, Educational Cess @ 2% and Secondary & Higher Education Cess @ 1% shall continue to be levied..
OTHER IMPORTANT TAX PROVISIONS
- Minimum Alternate Tax (MAT) and Dividend Distribution Tax(DDT) were not applicable to Companies located in Special Economic Zones (SEZs). From the year 2011-12 , both these taxes has been made applicable to Companies Located in SEZ.,
- Contribution to New Pension Scheme by the employer will be allowable as deduction from Profits & Gains of the Business subject to the maximum of 10% of the Salary.
- The due date for filing returns in respect of Corporate assesses liable to file Form 3CEB (Transfer Pricing) has been changed to 30th of November.
- The rate of Minimum Alternative Tax (MAT) has been increased to 18.5% as against the present rate of 18%.
- Minimum Alternative Tax (MAT) has been made applicable to Limited Liability Partnerships also from the A.Y.2012-13 (F.Y.2011-12).
- Additional Deduction of Rs. 20000/- for Investment in Long Term Infrastructure Bonds u/s. 80CCF will be available for the A.Y.2012-12 (F.Y.2011-12) also.
- It is also proposed to exempt certain class or classes of persons from furnishing the return of Income. It is expected that salaried employees with only salary income will be exempt from the requirement of filing their return of Income. The relevant notification in this regard will be issued soon.
IMPORTANT SERVICE TAX PROPOSALS
- The following new services has been brought under the ambit of Service –tax :-
1) Services Provided by Air-conditioned restaurants having a license to serve alchoholic
beverages in relation to serving of food and/or beverages.
2) Short-term accommodation provided by hotel, Inn, guesthouse, club or any other similar
establishment for a continuous period of less than three months.
- The scope of the following services has been expanded :-
– Legal Consultancy Services
– Business Support Services
– Commercial Training or Coaching Services
– Health Services
- The rate of Services tax on Domestic Air Travel has been increased from Rs. 100/- to Rs. 150/- and International travel has been increased from Rs. 500/- to Rs. 750/-
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