Notes regarding Indian Income tax 

by - MLG Associates, Chartered Accountants

 

INCOME TAX RATES

For individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI):For Financial Year 2010-2011

1.      Income Tax  Rates 

a.      Basic Slabs

Basic Rates 

 

Rate

 

Upto Rs. 1,60,000

Nil

 

Rs. 1.60 lac - Rs.5.00 lac

10%

 

Rs. 5.00 lac - Rs.8.00 lac

20%

 

Rs. 8.00 lac onwards

30%

 

 

 

 

 

Surcharge

 

NIL

 

 

Education Cess , & SHE cess ( continues)

3% for all.

 

b.      Basic exemption limit (till which, you do not have to pay any tax). This remains the same.

                                                   i.      For normal people : Rs. 1,60,000

                                                 ii.      For women hiked to Rs 1,90,000

                                                iii.      For Senior Citizens = Rs. 2,40,000

c.      So, ??  Most of you save Good value in Income TAXES č Savings are č  upto Rs. 51500. per person ( saving on income of 8 lakh).

 

Life Insurance for Family

 

Please observe == effective Tax Rates, have become further, very very low

 

Table 1 = Tax % has come down to very very low.

 

Income

Savings - section 80C, 80CCF (suppose)

Net taxable income after 80C

Basic Tax

Cess, she cess

Total Income Tax

Effective  Tax %

100,000

0

100,000

0

0

0

0.00%

200,000

50,000

150,000

0

0

0

0.00%

300,000

75,000

225,000

6,500

195

6,695

2.23%

500,000

100,000

400,000

24,000

720

24,720

4.94%

800,000

120,000

680,000

70,000

2,100

72,100

9.01%

1,000,000

120,000

880,000

118,000

3,540

121,540

12.15%

 

Note : We have “assumed” some savings in Section 80C, and new section 80CCF ( new infrastructure bonds ). Actual savings vary from person to person. And, please note, apart from this, you can take benefit of Mediclaim, HRA, conveyance allowance, and perks etc also.

 

Table 2 = TDS per month,  has come down too, to pity amounts.

 

 

Income per year

Tax required

per month

100,000

0

200,000

0

300,000

558

500,000

2,060

800,000

6,008

1,000,000

10,128

Above Table 2 is based on the Table 1

 

Also, please see that a person who earns, say Rs. 42000 per month, has to pay TDS of just 2000 per month.

 

Similarly, for an Income of Rs. 20000 p.m. his tax could be nil.

 

And for Income of 25000 p.m. his TDS could be just around Rs 500 per month

 


Note:

Home

Contact MLG Team

E-circulars by MLG

Income Tax notes

Service tax notes

Team

MLG Associates is a premier Chartered Accountancy and CA Firm, into Consultancy Faridabad, Gurgaon, and New Delhi. We are also serving clients upto Banglore in south

We serve our patrons with consultancy in matters relating to Taxation, Income Tax, Audit, Company Law Matters and the like. So, you can contact us for Income Tax returns, PAN, E-filing, Electronic Returns, Delhi Municipal Taxes E-filing, Bangalore Professional Tax Filing. 

MLG Associates, working for clients in New Delhi, Faridabad, Noida, Gurgaon, IMT Manesar, Shoghi, Shimla, Chandigarh, Kaleamb(Himachal Pradesh), Karnal, Sahibabad, Gaziabad,  ,  and so on. Pls click here for contact details.

Our Company Secretary team can handle your online Filing, Digital Signatures, Directors Identification Number, MCA 21 Work, New Company Registrations, Charge Creation, Charge vacation, CLB Matters, 

You can contact us by  e-mail : skgupta@mlgassociates.org, or by calling us at  +09312608426

========================================================

Copyright (c) 2010. The site Conceptualised and Maintained by Finsys Infotech Limited. All rights reserved. www.finsys.co.in