Individuals, HUF,AOP,BOI Income Rate of Tax Upto 160,000 0% >160,000 and < =500,000 10% >500,000 and <

=800,000 20% >800,000 30% Senior Citizen ( Resident and >=65 yrs) Income Rate of Tax Upto 240,000 0% >240,000 and < =500,000 10% >500,000 and < =800,000 20% >800,000 30% Females( <65 yrs and resident) Income Rate of Tax Upto 190,000 0% >190,000 and < =500,000 10% >500,000 and < =800,000 20% >800,000 30%

S.No 1 2 3 4 5

Incomes which do not become part of total income or exempt from tax Some Examples 10(1) Agriculture Income 10(2) Receipts as member of HUF 10(2A) Share of Profit from Partnership firm 10(7) Allowance paid by GOI for international trips undertaken for rendering some 10(10 D) sum , including bonuses received on life insurance policies - Exceptions are t 10(16) educational scholarships Interest from PPF and recognised EPF schemes Heads of Income 1. Salary 2. Income from house 3. Profits from business / profession 4. Capital Gains 5. Income from other sources Income of Previous Year, paid in the same year for the following cases 1. Income of non-residents from shipping 2. persons leaving india either permanently or for a long time 3. Income of bodies formed for short duration 4. income of a person trying to liquidate assets with a view to avoid payment of tax 5. Income of a discountinued business

Particulars Firms Domestic Companies Foreign Companies Basic Tax Rate 30.00% 30.00% 40.00% Surcharge 0.00% 7.50% 2.50% Education Cess 2.00% 2.00% 2.00% Sec & Higher Sec education cess 1.00% 1.00% 1.00% Effective Tax Rate 30.90% 33.22% 42.23% Co-operative Societies Rate of Tax Surcharge 10% NA 20% NA 30% NA

Income Upto 10000 >10000 upto 20000 >20000

Education Cess 3% 3% 3%

What is Financial Year ? What is Previous Year ? What is Assessment Year ?

both 10-11 & 11-12 2010-11 2011-12

come or exempt from tax

A is a member of HUF with an income of 10 lacs , he receives 2 lacs as estate and 1 lac as Why ? Tax already paid by firm international trips undertaken for rendering some service as adviced by GOI eceived on life insurance policies - Exceptions are there :Keyman insurance eg

ar for the following cases

a long time

h a view to avoid payment of tax

ompanies

cs as estate and 1 lac as a share of income - He still pays IT for 10 lacs

Problem 1 :Shriya , aged 27 , has a total income of Rs.12,25,000 for FY 2010-11 . Compute her income Shriya - Age 27 Income Rate of Tax Value Upto 190,000 0% 0 >190,000 and < =500,000 10% 31000 >500,000 and < =800,000 20% 60000 >800,000 30% 127500 Total Before Education Cess 218500 Cess 3.00% 6555 Total After Education Cess 225060 Problem 2 :Devika , aged 65 , has a total income of Rs.10,03,000 for FY 2010-11 . Compute her income Devika - Age 65 Income Rate of Tax Value Upto 240,000 0% 0 >240,000 and < =500,000 10% 26000 >500,000 and < =800,000 20% 60000 >800,000 30% 60900 Total Before Education Cess 146900 Cess 3.00% 4407 Total After Education Cess 151310

Problem 3 :Rajinikanth , aged 61 , has a total income of Rs.2,10,000 for FY 2010-11 . Compute her income SuperStar - 61 Income Rate of Tax Value Upto 160,000 0% 0 >160,000 and < =500,000 10% 5000 >500,000 and < =800,000 20% 0 >800,000 30% 0 Total Before Education Cess 5000 Cess 3.00% 150 Total After Education Cess 5150 Problem 4 :Sujatha , aged 60 , has a total income of Rs.3,50,000 for FY 2010-11 . Compute her income Sujatha - 60 Income Rate of Tax Value Upto 190,000 0% 0 >190,000 and < =500,000 10% 16000 >500,000 and < =800,000 20% 0 >800,000 30% 0 Total Before Education Cess 16000

Cess Total After Education Cess

3.00%

480 16480

Problem 5 :Suganya , aged 42 , has a total income of Rs.6,35,440 for FY 2010-11 . Compute her income Suganya - 42 Income Rate of Tax Value Upto 190,000 0% 0 >190,000 and < =500,000 10% 31000 >500,000 and < =800,000 20% 27088 >800,000 30% 0 Total Before Education Cess 58088 Cess 3.00% 1742.64 Total After Education Cess 59830

ompute her income for AY 11-12

Compute her income for AY 11-12

Compute her income for AY 11-12

ompute her income for AY 11-12

Compute her income for AY 11-12

Residential Status for Individuals a

Resident

Ordinarily Resident

Residential Status for Firms, AOP , Joint S

Resident 1. Residential Status may vary from year to year 2. A resident in India can simultaneously be a resident abroad as well

Residential Sta

Basic Conditions : 1. An individual has to be in India in the previous year for a period or perio 2. He/She is in India for a period or periods amounting to atleast 365 days during the the previous year AND is in India for a period or periods amounting to atle THE BASIC CONDITION 2 is NOT APPLIED WHEN 1. Indian citizen leaves india during the previous year for the purpose of employment 2. Indian citizen leaves india as a member of crew in an Indian Ship 3. PIO comes to India ona visit during the previous year

Additional Conditions: 1. Resident in India in atleast 2 out of 10 years preceeding the previous year 2. Presence in India for atlast 730 days during the last 7 years immediately preceeding the previous y

Residence Criteria Basic Resident and Ordinarily Resident atleast 1 Resident and not Ordinarily Resident atleast 1 Non Resident none

Additional both 1 or none none

Residential Status of HUF A HUF is resident in India if Control & Mgmt of its affairs is wholly or partly situated in India A HUF is non resident in India if C & M of its affairs is wholly situated outside India Residence Criteria C&M Additional Resident and Ordinarily Resident YES both

Resident and not Ordinarily Resident YES Non Resident none

1 or none none

Residential Status of a Firm / AOP Resident in India if C&M of its affairs are wholly or partly situated within India during the pre non resident in India if C & M of its affairs is wholly situated outside India

Residential Status of Company An Indian company is always resident in India A foreign company is resident only if C& M of its affairs was wholly situated in India during t A foreign company is non resident if C& M of its affairs was wholly or partly situated outside Indian Income Received within India Accrued within India Yes Yes Yes No No Yes Foreign Income Received within India Accrued within India No No Incidence of Tax for different tax payers Particulars Income Resident in India Income deemed to be received in India Income accrued or arise inIndia Income deemed to be accrued or arise inIndia Income arising outside India froma a business or profession situated outside India but control or management of it is in India (Wholly or partially) R & OR Taxable Taxable Taxable Taxable Resident but NOR Taxable Taxable Taxable Taxable

Taxable

Taxable

Income arising outside India froma a business or profession situated outside India and the control or management of it is situated outside India Taxable

Not Taxable

Surya is an Indian citizen who left India for the first time on 5th Sep 2010 for exports of the him in India . He returned on 5th April 2011 . What is his residential status for Basic Condition 1 is not satisfied 2 is satisfied Additional Condition both are satisfied

1-Apr-10 5-Sep-10 158.00 lives more than 365 days in the 4 yrs immediately preceeding th

Ordinary Resident

Vikram, an American citizen has parents who were born in Canda. His paternal grand fathe 1929. On 17th July 2010, he came to India to attend a marriage. He left India for USA on 13 India during the last few years was 9 -10 ( 102 days ) 8-9 ( 75 days ) 7-8 ( 130 days ) 6-7 residential status for AY 11- 12 Basic Condition 1 is not satisfied 2 is not satisfied Additional Condition NOT REQUIRED TO CHECK 17-Jul-10 181.00 347 13-Jan-11

Non Resident

Since he is a PIO . Should not check con

tatus for Individuals and HUF

Non- resident

Not Ordinarily Resident

or Firms, AOP , Joint Stock company

Non- resident

Residential Status of Individuals

year for a period or periods amounting to atleast 182 days 365 days during the 4 years immediately preceeding the previous year eriods amounting to atleast 60 days in the previous year

receeding the previous year

HUF partly situated in India . d outside India

m / AOP thin India during the previous year

mpany

ituated in India during the previous year or partly situated outside India during the previous year

Non-Resident Taxable Taxable Taxable Taxable

Not Taxable

Not Taxable

2010 for exports of the goods manufactured by his residential status for AY 11- 12

mediately preceeding the previous year Resident

His paternal grand father was born in Karachi in e left India for USA on 13th Jan 2011 .His stay in ys ) 7-8 ( 130 days ) 6-7 (40 days ) What is his 1- 12

. Should not check condition 2