FINANCE ACT,2011
As per the Finance Act, 2011, income-tax is required to be deducted under Section 192 of the Income-tax Act 1961 from income chargeable under the head “Salaries” for the financial year 2011-2012 (i.e. Assessment Year 2012-2013) at the following rates:
RATES OF INCOME-TAX
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/- |
Surcharge on Income tax:
There will be no surcharge on income tax payments by individual taxpayers during FY 2011-12 (AY 2012-13).
Education Cess on Income tax:
The amount of income-tax shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.
Additional surcharge on Income Tax (Secondary and Higher Education Cess on Income-tax):
From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one percent of income-tax (not including the Education Cess on income tax).
Education Cess, and Secondary and Higher Education Cess are payable by both resident and non-resident assessees.