Income Tax slabs Rates After Budget 2012

On Friday, March 16, 2012 | 6:00 PM

Finance Minister has Increased the exemption Limit to 2,00,000 from earlier 1,80,000 .Further Tax slab for 20% has now extended up to 10 Lakhs . No change in exemption limit for senior citizen and very senior citizen. After implementation of these limit and changes maximum benefit to females assessee less than 60 is  21630 , male less than 60 will be 22660 and senior citizen and very senior citizen tax benefit will be 20600. You can claculate your tax benefit form our tax calculator available here after budget 2012-13


  1. Deduction of Interest up to 10000 on saving bank account has also been allowed from Fy 2012-13(read section 80TTA)
  2. A new deduction of 50000 Rs also proposed for investment in equities Rajiv Gandhi Retail Equity scheme for income up to 10 Lakhs details awaited .(read section 80CCG)
  3. No change in Corporate tax.
  4. However 80CCF deduction has been withdrawn .(Good bye to 80CCF infrastructure Bonds )

RATES OF INCOME-TAX after Budget 2012 presented on 16.03.2012

A. Normal Rates of tax:

   1.  Where the total income does not exceed Rs. 2,00,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/-
10 per cent of the amount by which the total income exceeds Rs.2,00,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 10,00,000/-.
Rs. 130,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year:

   1.  Where the total income does not exceed Rs.2,00,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 2,00,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 10,00,000/-.
Rs. 130,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty years or more but less than eighty years at any time during the financial year:

   1.  Where the total income does not exceed Rs. 2,50,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 2,50,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 10,00,000/-.
Rs. 125,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
D. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

   1.  Where the total income does not exceed Rs. 5,00,000/-
Nil
   2.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
   3.  Where the total income exceeds Rs.10,00,000/-
Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs.10,00,000/-

  1. Surcharge on Income tax: There will be no surcharge on income tax payments by individual taxpayers during FY 2011-12 (AY 2012-13).
  2. Cess :3 %
======================================================
Old Rates 

RATES OF INCOME-TAX For Fy 2011-12

A. Normal Rates of tax:

   1.  Where the total income does not exceed Rs. 1,80,000/-.
Nil
   2.  Where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 5,00,000/-
10 per cent of the amount by which the total income exceeds Rs. 1,80,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-.
Rs. 32,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 8,00,000/-.
Rs. 92,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-.
B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year:

   1.  Where the total income does not exceed Rs. 1,90,000/-.
Nil
   2.  Where the total income exceeds Rs. 1,90,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 1,90,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-.
Rs. 31,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 8,00,000/-.
Rs. 91,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-.

C. Rates of tax for an individual, resident in India and of the age of sixty years or more but less than eighty years at any time during the financial year:

   1.  Where the total income does not exceed Rs. 2,50,000/-.
Nil
   2.  Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/-.
10 per cent, of the amount by which the total income exceeds Rs. 2,50,000/-
   3.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-.
Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
   4.  Where the total income exceeds Rs. 8,00,000/-.
Rs. 85,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-.
D. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

   1.  Where the total income does not exceed Rs. 5,00,000/-
Nil
   2.  Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-
20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
   3.  Where the total income exceeds Rs. 8,00,000/-
Rs. 60,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-

  1. Surcharge on Income tax: There will be no surcharge on income tax payments by individual taxpayers during FY 2011-12 (AY 2012-13).
  2. Cess :3 % 
Labels: , , , ,

45 comments:

  1. what about CESS of 3% which was existing in fy 11-12 ?

    ReplyDelete

  2. This Government gets so much of tax from middle class but does nothing to them in reply...
    Not even providing basic amenities like proper food, clean water, roads.... I hate this...

    ReplyDelete

  3. There are many mistakes in new tax slabs. So kindly make correction then post it freshly.
    Thanks.

    ReplyDelete
    Replies

    2. There is mistake of in tax slab in the image file with elobrated with man and woman faces.

      Delete

  4. Govt is corrupted.They want to efface middle class people.They talk about budget only to fullfill the need of high class people.We middle class people entire our life will pay tax for getting nothing.Especially for women also Govt dont give any scope of saving.Govt increased the price of all the things which middle class people can afford but reduced the price of costly thing because Govt and other high class people should save their money while purchasing the costly products.This budget does not belong to the entire country,its only for Govt and the rich people.In my point instead of thinking about entire country first all the ministers should pay 50% tax of their take home money. Even after paying 50% tax also I am pretty sure that they will have flood of money.Why Govt dont think about the corrupted people?? They know who are corrupted but then also they will be mute.

    ReplyDelete

  5. Sir, I earned about Rs 1.2 lakh as fee for writing web content and Rs.90,000 as interest on FD with banks between April 2011 and March 2012. I am 61 years old. Do I need to pay any income tax please?

    ReplyDelete
    Replies

    1. No , No need too pay any tax , as you are senior citizen ,tax exemption limit is 250000 and your income is less than 250000 so no tax is required to be paid

      Delete

  6. Wonderful, informative article. I wish all advisers were like you. God bless you.

    ReplyDelete

  7. I am salaried person, I live in own house which is in joint name of me and my wife. though while purchasing this house I contributed major share but sale deed is silent about the contribution in purchasing the house. Can I now authorise my wife thru POA to get HRA from my employer and show HRA as her income or share HRA as 50-50 for income tax purpose. My wife is having small income from tutions and also filing the ITR every year. If I do not do above, whole HRA will be taxbale in my hand. please advise.

    ReplyDelete
    Replies

    1. No , you should not do such tax plannings . Not advisable at all.

      Delete

  8. 1. Interest income from Savings Bank Account is taxable (no exemption till FY11-12 and exempted upto max Rs 10,000/- from FY12-13 onwards). This is one of the less known aspects of IT law and almost all assessees are ignorant on the same. Pls confirm for everyone's benefit.
    2. There is some confusion on continuation of exemption w.r.t. infrastructure bonds under 80-CCF w.e.f. 1st April 2012. Pls confirm the correct position.

    ReplyDelete
    Replies

    1. Yes , You are correct that Saving Bank Interest is exempted up to 10000/- from Fy 12-13. This as per section 80TTA and details are available here.

      http://www.simpletaxindia.net/2012/03/deduction-on-interest-on-savings.html

      Further 80CCF is not available in FY 2012-13.

      http://www.simpletaxindia.net/2012/03/good-bye-to-80ccf-infra-bonds-from-fy.html

      Delete

  9. i AM NRI AND have invested rs 50,000 in life stage wealth II of ICICI prudential life insurance in financial year 2011-12.Term is 10 years and frequency of payment is annual and sum assured is rs 350,000
    have also taken a policy icici pru life link wealth SP -invested rs 500,000 lump sum sum assured is 625000

    how much deduction under 80c i can claim while filing income tax for fy 2011-12(AY 2012-13)-CAN I CLAIM 120000 or will it be restricted to rs 100,000

    ReplyDelete
    Replies

    1. Maximum amount u/s 80C is 100000 rs .Addition 20000 was for fy 2011-12 available for Infrastructure bonds u/s 80CCF

      Delete

  10. can nri open ppf a/c

    ReplyDelete
    Replies

    1. No, a Non Resident Indian (NRI) cannot open a new PPF account in India.

      Delete

  11. i am a small business man( pharmacy) ,if my sale exceed 40 lacs from 2012-13 shall i have audit it ,if not what is the limit?

    ReplyDelete
    Replies

    1. Limit u/s 44AB is 1 crore for financial year 2012-13.
      However if your turnover is less than 1 crore and you does not show your net profit more or equal to 8 % of the turnover then you have to got your accounts audited u/s 44AB read with section 44AD
      http://www.simpletaxindia.net/2012/03/sales-turnover-limit-for-44ab-audit-and.html

      Delete

    2. sir i am salaried parson what is the surcharge rate & limits on income tax for FY 2012-13

      Delete

    3. Limit are already given above and these are applicable even on salaried person also. Further surcharge is not applicable on individual income tax .

      Delete

  12. Does the AO have the right to assess previous IT returns in the case of salaried employees?

    ReplyDelete

  13. sir, pls tell me that in previous year 11-12 i paid advance tax throw office and due to some numerical mistake Rs 121.oo less paid i tax and in july office paid extra money including rest tax (rs. 121)Rs.620 and told me that Rs.499 is intrest on tax.and the rule is no intrest paid on any numerical mistake in one year .so plz verify
    with thanks

    ReplyDelete
    Replies

    1. it is not cleared whether you are a salaried emloyee or a professional. however assuming your case as salaried one please note that this is the duty of the employer to deduct correct TDS from its employees u/s 192B and deposited the same to the income tax within time. If there is any default in making payment (short deduction or short deposition) it is solely responsibility of the employer and not the employees. so if any interest due to short eduction or delayed payment is arisen it should be borne by employer itself and it is illegal to charged the same to the employees head.

      i would advise you to contact the CFO of your Company and explain him the matter. i am sure he will help you in this regard. however if you are not being helped from the management, then you can contact income tax authority online an lodged complaints against your grievances quoting TAN of the employer.

      Thanks
      CA C Bhattacharya

      Delete

  14. my father is alessee of aplot of landfrom 1962 he was resideing there ti.then in 1990 he bought another piece of land where he constucted another house.hetrasferred his rightsof previous residence to some party .he has gain 1.5cr for that. will he has to pay capital gain.is he eligible for that.how much amount he has to pay tax if he invest in capital gain bond

    ReplyDelete

  17. Hi,

    While filing my tax returns for FY11-12, I had wrongly downloaded and used the Excel sheet for AY 11-12.

    As the tax slabs have changed my refund amount was less.I wish to reapply for AY12-13.

    In Rectification Request ,I am not getting option for AY 12-13.

    Please guide

    ReplyDelete

  18. sir,
    Iam working in a Uty. in our establishment one scientist has retired last fin.year. After that he got a UGC programme for 2 years by availing Rs.20,000 per month. Is this amount is taxable ? if so How much? guide plz
    madhupg

    ReplyDelete

  19. What about Income tax from Non-Residence Indian livin in country where there is not tax?
    If he or she is earning income in India on his Fix Deposit or Houser Rent. What is the limit for Income tax?

    ReplyDelete

  20. What about Income Tax on NRI living in a country where there is no TAX? But his property in rented, he is earning Interest on Fix Deposits and receiving dividends on his Demant account (PINS/NONPINS)

    ReplyDelete

  21. I have not received my refund of 2010-11.Please advise remedial action.

    ReplyDelete
    Replies

    1. you should apply /inquire from your Income Tax officer (ITO)

      Delete

    2. Hi,

      Please clear the term 'Ee LWF contribution'. Why this contribution is deduced from the salary.

      Delete

    3. It is employee labour welfare fund and it is deducted due to govt notification

      Delete

  22. Hi,

    We have to pay the 'Education cess'. Do we have to pay other cess as 'Sec and higher Educ cess'. What are the percentages of both of them.

    Please reply asap.

    ReplyDelete
    Replies

    1. Both eductaion cess and sec and higher education cess is payable total 3 % of TAX

      Delete

  23. As a Salaried Person, one of my friend missed filling a IT-return for the year 2011-12. How and where he can file the IT-return.

    ReplyDelete
    Replies

    1. he can file online or offline both modes,no penalty up to 31.03,2012 for fy 2012-13 return

      Delete

  24. IS PROPERTY TAX IS LEVIED ON PROPERTIES WHICH ARE UNDER CONSTRUCTION?

    ReplyDelete

  25. Sir
    Deduction in income tax in FY 11-12 was Rs 100000 plus Rs 20000 in M F Now in FY 12-13 deduction of Rs 20000 is withdrawn and as the incomee is more than Rs 10 lakh investment in Rajiv Gandhi Equity Saving Scheme is not elligible . Is there any other scheme in which I can invest to save tax other than Medical Insurance

    ReplyDelete

  26. The Rajiv Gandhi Retail Equity scheme mentioned in the above article has recently been launched and is a good option to increase your tax savings. You are eligible if you are a first time investor. There is no max limit on investment but 50,000 Rs will be considered for tax benefits and you can get 50% as deduction. Note this is only for people whose income is less than Rs. 10 Lakh

    ReplyDelete

  27. Raja Babu, I am not sure this is the right place to post my question but if not let me know where can I repost it again.

    I have been into US since last 6 years and since then, I did not filed my Income tax in India. Back when I was in India, I was filing it without any break. I have no income except some Bank interest and FD income which is not exceeded Rs 25000, in any of the past 6 financial years. My question is:

    1. What is the process of making myself compliance with this?
    2. Do I have to update my NRI status somewhere into the IT Department? or just filing the return and specifying it there is enough?


    Thanks

    ReplyDelete
    Replies

    1. No need to update the status to Income Tax department as you are not required to filed return as per income tax act/rules in India . However you should inform your banker about this at least.

      Delete