Income Tax Structure for the year 2012-13 (Assessment Year 2013-14) – Source:gconnect

The Income Tax Rates applicable for the financial year 2012-13 (Assessment year 2013-14)  have been revised. The following is the New Income Tax structure for the year 2012-13.

In case of individual (other than II and III below) and HUF

Income Level Income Tax Rate
i. Where the total income does not exceed Rs.2,00,000/-. NIL
ii. Where the total income exceeds Rs.2,00,000/- but does not exceed Rs.5,00,000/-. 10% of amount by which the total income exceeds Rs. 2,00,000/-
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.10,00,000/-. Rs. 30,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv. Where the total income exceeds Rs.10,00,000/-. Rs. 1,30,000/- + 30% of the amount by which the total income exceeds Rs.10,00,000/-.

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:-

Income Level Income Tax Rate
i. Where the total income does not exceed Rs.2,00,000/-. NIL
ii. Where total income exceeds Rs.2,00,000/- but does not exceed Rs.5,00,000/-. 10% of the amount by which the total income exceeds Rs.2,00,000/-.
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.10,00,000/-. Rs. 30,000- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv. Where the total income exceeds Rs.10,00,000/- Rs.1,30,000/- + 30% of the amount by which the total income exceeds Rs.10,00,000/-.

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:-

Income Level Income Tax Rate
i. Where the total income does not exceed Rs.2,50,000/-. NIL
ii. Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/- 10% of the amount by which the total income exceeds Rs.2,50,000/-.
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.10,00,000/- Rs.25,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv. Where the total income exceeds Rs.10,00,000/- Rs.1,25,000/- + 30% of the amount by which the total income exceeds Rs.10,00,000/-.

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:-

Income Level Income Tax Rate
i. Where the total income does not exceed Rs.2,50,000/-. NIL
ii. Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/- Nil
iii. Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.10,00,000/- 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv. Where the total income exceeds Rs.10,00,000/- Rs.1,00,000/- + 30% of the amount by which the total income exceeds Rs.10,00,000/-.
  • Education Cess: 3% of the Income-tax.
  • New Rs 50,000 tax exemption for retail equity investments
  • Sale of residential property exempt from Capital Gains tax if invested in equity or equipment of an SME.
  • Implementation of Direct Tax Code (DTC) deferred. GST to be operational by August 2012.
  • Deduction on Infrastructure bond raised from Rs.20,000 to Rs.40,000

Income tax exemption limit raised to Rs 2 lakh

The tax exemption limit for individuals has been hiked to Rs 2 lakh from the current Rs 1.8 lakh, while the tax slabs have been re-jigged to provide relief to tax payers.

Presenting the union budget for 2012-13 in the Lok Sabha, finance minister Pranab Mukherjee said the upper limit for the 20 % tax slab would be increased to Rs 10 lakh.

“I propose to enhance the exemption limit for individual from Rs 1.80 lakh to Rs 2 lakh. I also propose to raise the upper limit of the 20% tax slab from Rs 8 lakh to Rs 10 lakh,” Mukherjee said.

“This measure will provide a tax relief of Rs 2,000 to every taxpayer of this category,” Mukherjee said.

The new tax slab for the coming fiscal will be 10% tax for income above Rs 2 lakh and up to Rs 5 lakh, 20% for above Rs 5 lakh and up to Rs 10 lakh, and 30% for income above Rs 10 lakh.

An Individual having income not exceeding Rs. 5 lacs from salaries/other sources for A.Y. 2011-12 is not required to file return u/s 139(1)

NOTIFICATION NO. 36/2011 F. NO. 142/09/2011 (TPL), DATED 23-6-2011

In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—

Class of Persons

1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—

 (A)  “Salaries”;

 (B)  “Income from other sources”, by way of interest from a savings account in a bank, not exceeding ten thousand rupees.

Conditions

2. The individual referred to in para 1,—

  (i)  has reported to his employer his Permanent Account Number (PAN);

 (ii)  has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;

(iii)  has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

(iv)  has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

 (v)  has no claim of refund of taxes due to him for the income of the assessment year; and

(vi)  has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.

4. This notification shall come into force from the date of its publication in the Official Gazette.

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Salary earners with income till Rs. 5 Lakh need not file returns

Salary earners having an income of less than Rs 5 lakhs will not have to file tax returns from this year, a finance ministry official said.

“Salaried people, may be up to Rs 5 lakh…they need not file the (income tax) return,” CBDT chairman Sudhir Chandra told reporters at the customary post-Budget press conference.

The exemption from filing tax returns come into effect from the assessment year 2011-12.

In case such a salary earner has income from other sources like dividend, interest etc. and does not want to file returns, he will have to disclose such income to his employer for tax deduction, Chandra said.

The government, he said, is working out a scheme and will notify it “very soon”.

The Form 16 issued to salaried employees will be treated as Income Tax Return, he added.

Source: PTI

BUDGET: INCOME TAX EXEMPTION LIMIT HIKED TO RS 1.80 LAKH

Finance Minister Shri Pranab Mukherjee just completed presentation of  the budget for the year 2011. The highlights pertaining to individual Income Tax are given below:

In a relief provided to the salaried class in Union Budget 2011-12, Finance Minister Pranab Mukherjee on Monday hiked the individual taxpayers’ Income Tax exemption limit from the current Rs 1.60 lakh to Rs 1.80 lakh. This will translate into an annual savings of Rs 2,000 on Income Tax.

The exemption limit for senior citizens has also been increased from the current Rs 2,40,000 to Rs 2,50,000, while senior citizens’ age limit has been reduced from 65 years to 60 years. A very senior citizens category has also been created for people with age 80 years and above and they will get a higher exemption limit of Rs 5 lakh. The exemption limit for women tax payers remains unchanged at Rs 1,90,000.

Inflation impact: Govt may hike tax exemption limit

Tax payers can expect some relief from high inflation in Budget 2011-12 as the government may raise the income tax exemption limit for individuals.”Finance Minister Pranab Mukherjee is alive to the price situation and its impact on the common man,” sources said, adding he would favourably consider the issue of hiking tax exemption limit.

Moreover, they said, as the government is committed to raise the income tax exemption limit from Rs 1.6 lakh per annum to Rs 2 lakh in line with the Direct Taxes Code (DTC) in 2012-13, tax payers could expect at least some relief in the upcoming Budget on February 28. “The finance ministry would keep in mind the high inflation in the Budget. Since there is no dearness allowance for a vast section of the society, hike in income tax exemption limit is likely,” a source told PTI.

Source: PTI

Proposal to exempt Salaried Class from filing Tax return; What about Pensioners?

The Chairman of Central Board of Direct Taxes (CBDT) which manages Income tax department in India has said that his department is likely to consider the proposal of exempting Salaried Tax Payers who have have no other income other than salary from filing income tax returns.

If this proposal is considered in favour of Salaried Class, all employees including Cental Government Emplyees need not file any income tax return that has to be filed every year in the form of ITR-1 or ITR-2.

It is estmated that out of 35 Million Tax Payers in the country approximately half of them are salaried employees.

This change would also reduce the work burden of Income tax department.

The logic behind this proposal to exempt Salaried employees from filing tax retun is obviously the income details of salaried class is available with the employer as well as banks through which they receive their salary.

Source: Business Standard