INCOME TAX SLABS FOR A.Y.2012-13 (F.Y.2011-12):- As per Indian Income Tax Act, every person whose income is taxable will have to pay the income tax as per rates given below:-

Income Tax Rates forVery Senior Citizens (80 Years and Above) Who are the resident of India.

INCOME

TAX RATES

UP TO 500000

NIL

500001 TO 800000

20%

800000 ONWARDS

30%

Add:  – Education Cess (EC) 2% on Income Tax payable.

– Secondary & Higher Education Cess ( S&HEC) 1% on Income Tax payable

Notes:

  • No surcharge is to be paid on Income Tax Amount.
  • According to Indian Income Tax Act Very Senior Citizens means a person who has completed 80 years in F.Y. 2011-12 or he/she is above 80 years.
  • Under this category no separate treatment shall be given to female tax payees.

Illustration:  Total Taxable Income Mr. X during F.Y. 2011-12 is Rs.1050000/=. Compute his taxable Income for A.Y.  2012-13. Mr. X  is 82 years old.

Solution:

Taxable Income Rates Tax Amount
UP TO 500000

500000

0

0

500001 TO 800000

300000

20%

60000

800000 TO 1050000

250000

30%

75000

TOTAL

1050000

 

135000

   
INCOME TAX AMOUNT

135000

Add: E.C. 2%

2700

Add: S&HEC 1%

1350

Total Tax Payable                     

139050

 Income Tax Rates for

Senior Citizens (60 Years and Above but below 80 years) Who are the Resident of India

INCOME

TAX RATES

UP TO 250000

NIL

200001 TO 500000

10%

500001 TO 800000

20%

800000 ONWARDS

30%

Add: Education Cess (EC) 2% on Income Tax payable

+ Secondary & Higher Education Cess ( S&HEC) 1% on Income Tax payable

Notes:

  • No surcharge is to be paid on Income Tax Amount.
  • According to Indian Income Tax Act Senior Citizens means a person who has completed 60 years in F.Y. 2011-12 or he/she is above 60 years but below 80 years.
  • Under this category no separate treatment shall be given to female tax payees.

Illustration:  Total Taxable Income Mr. Y during F.Y. 2011-12 is Rs.1200000/=. Compute his taxable Income for A.Y.  2012-13. Mr. Y is 60 years old.

Solution:

Taxable Income Rates Tax Amount
UP TO 250000

250000

0

0

250001 TO 500000

250000

10

25000

500001 TO 800000

300000

20%

60000

800001 TO 1200000

400000

30%

120000

TOTAL

1200000

 

205000

   
INCOME TAX AMOUNT

205000

Add: E.C. 2%

4100

Add: S&HEC 1%

2050

Total Tax Payable                     

211150

Income Tax Rates for

Women below 60 Years Who are the Resident of India

INCOME

TAX RATES

UP TO 190000

NIL

190001 TO 500000

10%

500001 TO 800000

20%

800000 ONWARDS

30%

Add: Education Cess (EC) 2% on Income Tax payable

+ Secondary & Higher Education Cess ( S&HEC) 1% on Income Tax payable

Notes:

  • No surcharge is to be paid on Income Tax Amount.
  • According to Indian Income Tax Act woman who has not completed 60 years in F.Y. 2011-12 or she is below 60 years.

Illustration:  Total Taxable Income Mrs. Y during F.Y. 2011-12 is Rs.900000/=. Compute her taxable Income for A.Y.  2012-13. Mrs. Y is 35 years old.

Solution:

Taxable Income Rates Tax Amount
UP TO 190000

190000

0

0

190001 TO 500000

310000

10

31000

500001 TO 800000

300000

20%

60000

800001 TO 900000

100000

30%

30000

TOTAL

900000

 

121000

     
INCOME TAX AMOUNT

121000

Add: E.C. 2%

2420

Add: S&HEC 1%

1210

Total Tax Payable                     

124630

 

Income Tax Rates for Other Individuals Who are Resident of India

INCOME

TAX RATES

UP TO 180000

NIL

180001 TO 500000

10%

500001 TO 800000

20%

800000 ONWARDS

30%

Add: Education Cess (EC) 2% on Income Tax payable

+ Secondary & Higher Education Cess ( S&HEC) 1% on Income Tax payable

Notes:

-No surcharge is to be paid on Income Tax Amount.

Illustration:  Total Taxable Income Mr. Z during F.Y. 2011-12 is Rs.1000000/=. Compute his taxable Income for A.Y.  2012-13. Mr. Z is 40 years old.

Solution:

Taxable Income

Rates Tax Amount
UP TO 190000

180000

0

0

190001 TO 500000

320000

10

32000

500001 TO 800000

300000

20%

60000

800001 TO 900000

200000

30%

60000

TOTAL

1000000

 

152000

   
INCOME TAX AMOUNT

152000

Add: E.C. 2%

3040

Add: S&HEC 1%

1520

Total Tax Payable                     

156560

Income Tax Rates for Partnership Firms

Flat Rate 30% on taxable income.

Add: Education Cess (EC) 2% on Income Tax payable

+ Secondary & Higher Education Cess ( S&HEC) 1% on Income Tax payable

Notes:

-No surcharge is to be paid on Income Tax Amount.

Illustration:

Total taxable Income during financial year 2011-12 of M/s XYZ (Partnership Firm) is Rs.600000/=. Calculate the tax liability.

Solutions:

Taxable Income

Rates Tax Amount
ON 600000

600000

30%

180000

TOTAL

600000

180000

INCOME TAX AMOUNT

180000

Add: E.C. 2%

3600

Add: S&HEC 1%

1800

Total Tax Payable             

185400

Income Tax Rates for Domestic Companies

Flat Rate 30% on taxable income.

Add: Education Cess (EC) 2% on Income Tax payable

+ Secondary & Higher Education Cess ( S&HEC) 1% on Income Tax payable

Note:  5% surcharge on income tax and cess, if total income exceeds one crore.

Illustration (a)

Total taxable Income of M/s ABC Pvt. Ltd. (Domestic Company), during financial year 2011-12 is Rs.1000000/=. Calculate the tax liability.

Solution:

Taxable Income

Rates Tax Amount
on 1000000

1000000

30%

300000

TOTAL

1000000

 

300000

INCOME TAX AMOUNT

300000

Add: E.C. 2%

6000

Add: S&HEC 1%

3000

Total Tax Payable             

309000

Illustration (b)

Total taxable Income of M/s XYZ Ltd. (Domestic Company) during financial year 2011-12 is Rs.12000000/=. Calculate the tax liability.

Solution:

Taxable Income

Rates Tax Amount
ON 12000000

12000000

30%

3600000

TOTAL

12000000

 

3600000

     
INCOME TAX AMOUNT

360000

SURCHARGE 5%

18000

TAX+SURCHARGE

378000

Add: E.C. 2% ON 378000

7560

Add: S&HEC 1% ON 378000

3780

Total Tax Payable                     

389340

 

Income Tax Rates for Individuals, Hindu Undivided Family (HUF) for Financial Year 2012-13 (Assessment Year 2013-14)

Taxable Income(Rs.) Very SeniorCitizens(80 years or more) Senior Citizens(60 years or moreBut less than 80 years) Other IndividualsAnd HUF
Up to 2,00,000

NIL

NIL

NIL

2,00,001 TO 2,50,000

NIL

NIL

10%

2,50,000 TO 5,00,000

NIL

10%

5,000 + 10%

5,00,001 TO 10,00,000

20%

25,000+20%

30,000 + 20%

EXCEEDING 10,00,000

1,00,000 + 30%

1,25,000 + 30%

1,30,000 + 30%

Note:

  • Education Cess 2% and Secondary & Higher Education Cess 1% shall be leviable on the amount of income tax.
  •  There is no change in tax rates for other categories of tax payers for financial year 2012-13.

RELATED TERMS

• Learn Accounting, Free Accounting Tips
• General Accounting Terms
General Tips Relating to Indian Income Tax Act
• Free Tally Learning
• General Tips Relating to Sales Tax-VAT
• General