PERSONAL TAX RATES

For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):

Income Tax Rates/Slabs for Assesment Year 2012-13 (F Y 2011-12)

Income Tax Rates/Slabs Rate (%)

Up to 2,00,000
Up to 2,50,000 (for women) NIL
Up to 2,50,000 (for resident individual of 65 years or above)

2,00,000 – 5,00,000 10

5,00,001 – 10,00,000 20

10,00,001 upwards 30

Major amendments introduced by Direct Taxation Code (DTC) bill for FY

2011-12:

• The new code comes into effect from April, 2011.

• Withdrawal from provident funds will not be taxed.

• Deduction from available income will be available for interest on housing

loan up to 1.5 lakh per annum and for payment into PF or
superannuation schemes up to 1 lakh.

• Deduction up to Rs 50,000 for life insurance and health insurance

policies or tuition fees.

Income Tax Rates/Slabs for Assesment Year 2011-12 (F Y 2010-11)

Income Tax Rates/Slabs Rate (%)

Up to 1,60,000
Up to 1,90,000 (for women) NIL
Up to 2,40,000 (for resident individual of 65 years or above)

1,60,001 – 5,00,000 10

5,00,001 – 8,00,000 20

8,00,001 upwards 30

Few amendments made to the taxation system for the FY 2010-11:

• From now onwards there will be only 2 pages in the IT filing form for
individuals.

• More cases can now be appealed against.

• Rs. 20,000 tax exemption will be provided for investments in certain

 investment bonds. This is in addition to the already allowed exemption
(Rs. 1,00,000) in certain savings instruments.

• Tax Exemption will be given for contribution to the Central Government

Health Scheme (CGHS).

• New fields have been added to the e-TDS/TCS form. These new fields
are Ministry name; PAO / DDO code; PAO / DDO registration no.; State
name; and Name of the utility used for return preparation.

Income Tax Rates/Slabs for Assesment Year 2010-11 (F Y 2009-10)

Income Tax Rates/Slabs Rate (%)

Up to 1,60,000
Up to 1,90,000 (for women) NIL
Up to 2,40,000 (for resident individual of 65 years or above)

1,60,001 – 3,00,000 10

3,00,001 – 5,00,000 20

5,00,001 upwards 30*

*A surcharge of 10 per cent of the total tax liability is applicable where the total incomeexceeds Rs
1,000,000.
Note : -

• Education cess is applicable @ 3 per cent on income tax, inclusive of

surcharge if there is any.

• A marginal relief may be provided to ensure that the additional IT

payable, including surcharge, on excess of income over Rs 1,000,000 is
limited to an amount by which the income is more than this mentioned
amount.

• Agricultural income is exempt from income-tax.