Income tax rates with respect to the assessment year 2012-2013
Mar. 20 – In respect to income of all categories of assessees accountable for tax during the assessment year 2012-13, the rates of income tax have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance Act (2011) for the purposes of computing “advance tax,” deduction of tax at source from “salaries,” and charging of tax payable in certain cases.
Surcharges on income-tax
Surcharges shall be charged with respect to income accountable to tax for the assessment year 2012-13 in the following cases:
- In the case of an Indian national having total income exceeding 1 crore rupees, the amount of income tax calculated shall be increased by a surcharge for the purposes of the Union calculated at the rate of 5 percent of such income tax
- In the case of a company, other than a domestic company, having total income exceeding 1 crore rupees, the amount of income tax computed shall be increased by a surcharge for the purposes of the Union calculated at the rate of 2 percent of such income tax
Though, marginal respite shall be allowed in all cases to ensure that the additional amount of income tax payable, including surcharge, on the excess of income over 1 crore rupees is limited to the amount by which the income is more than 1 crore rupees.
Moreover, in the case of every company having total income taxable under section 115JB of the Income Tax Act (1961) and where such income exceeds 1 crore rupees, surcharge at the rates mentioned above shall be levied and marginal relief shall also be provided.
Education Cess
For assessment year 2012-2013, an additional surcharge called the “Education Cess on Income Tax” and “Secondary and Higher Education Cess on Income Tax” shall continue to be levied at the rate of 2 percent and 1 percent, respectively, on the amount of tax computed, inclusive of surcharge, in all cases. No marginal relief shall be available.
Rates for deduction of income tax at source
The rates for deduction of income-tax at source from “salaries” during the financial year 2012-13 and also for computation of “advance tax” payable during the said year in the case of all categories of assessees have been specified in Part III of the First Schedule to the Bill.
These rates are also applicable for charging income-tax during the financial year 2012-13 on current incomes in cases where accelerated assessments have to be made, for instance, provisional assessment of shipping profits arising in India to non-residents, assessment of persons leaving India for good during the financial year, assessment of persons who are likely to transfer property to avoid tax, assessment of bodies formed for a short duration.
The salient features of the rates specified in Part III are indicated in the following paragraphs. Paragraph A, Part III of the First Schedule to the Bill provides the following income tax rates:
The rates of income-tax in the case of every individual (other than those mentioned in table 2 or table 3 below), Hindu undivided family, association of persons, body of individuals, whether incorporated or not, or every artificial juridical person referred to in Sub-clause (vii) of Clause 31 of Section 2 of the Income-tax Act (not being a case to which any other Paragraph of Part III applies) are outlined in table 1 below.
No surcharge shall be charged in cases of persons covered under Paragraph A, Part III of the First Schedule.
Cooperative societies
These rates will continue to be the same as those specified for the assessment year 2012-13. No surcharge shall be levied.
Firms
This rate will continue to be the same as that specified for the assessment year 2012-13. No surcharge shall be levied.
Local authorities
This rate will continue to be the same as that specified for the assessment year 2012-13. No surcharge shall be levied.
Companies
These rates are the same as those specified for the assessment year 2012-13.
The existing surcharge of 5 percent in case of a domestic company shall continue to be charged. In case of companies other than domestic companies, the existing surcharge of 2 percent shall continue to be levied.
On the other hand, the total amounts payable as income tax and surcharge on total income exceeding 1 crore rupees shall not exceed the total amount payable as income tax on a total income of 1 crore rupees by more than the amount of income that exceeds 1 crore rupees.
The existing surcharge of 5 percent in all other cases (including sections 115JB, 115-O, 115R) shall continue to be levied.
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Thanks. It is an educative paper written in simple language so that one and all can understand. An elucidation of various sub sections, especially the exemptions would nave made the paper more comprehensive. Col Kala
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Nice!!
Thanks Nitin! – Chris
Sir please tel me Director remuneration and salary will be service taxable.
Dear Sir,
Is surcharge payable by a company having income of less than one crore on Dividend distribution tax and if so under which section / provision of the Income Tax Act ?
Thanks.
Dear Rajesh,
Director Remuneration other than Salary is Liable for Service Tax.
Dear Mr. Jose,
Yes the surcharge @ 5% needs to be paid u/s 115 O . Surcharge is not levied acoording to any section of the Income Tax Act. It is the additional charge on taxes imposed for the purpose of Union by the Finance Minister under theConstitution of India in Annual Budget Everyyear.
Please refer the 2012-13 Finance Budget for clarification
http://indiabudget.nic.in/ub2012-13/mem/mem1.pdf
Feel Free to Contact in case you have further query.
Best Regards,
Cherry Bansal
Dear sir,, i am not seen what is the rate of income tax on salary. Please reply
Dear Amjad,
For Salary, please refer the slabs given above for individuals.
Feel free to contact me on cherry.bansal@dezshira.in for any further clarification.
Thanks,
Cherry Bansal
pse. help me to prepare indiual in come tax for the year 2012-13 salaried my monthly salary about 32420 p.m. how to prepare assesment and how much can save tazx house.rent 6150 cca350 uniform 100 medical 100 spl.30 pp 75 and ded.pf10,000 pt200 gis120 and recovery for welfare 20.00 pm can u help me if possible send prepared chart pse.
Dear Jayakumar D.K.
Yes surely , we can help you in structuring the salary in the tax efficient way. I will be contacting you through email. Please provide me your email address or mail me at cherry.bansal@dezshira.in.
Best Regards,
Cherry Bansal
Hi,
Thanks for the detailed info. I have a little confusion regarding this tax deductions. My total CTC is 5L pa where as 4.5L is my package. 50K I will be getting at the end of the year. So tax will be completely on 5L r8? I pay only 5000 medical insurance and 6500rs per month as rent. What is the maximum limit for house rent expenditure? Will the medical expenses I show have a maximum limit of medical reimbursement provided by my company? I am paying insurance for my father and mother who are not tax payers and are dependents on me, will the insurance I pay for them can be claimed under dependents? Finally, how much amount I should be investing to avoid tax deduction?
This will be of immense help if you can guide me.
Regards,
Rupesh
Dear sir,, i am not seen what is the rate of income tax on salary. Please reply
Dear Sir,
I have a dual citizenship and have rental and interest income in India to the tune of some Rs 700,000/-. During this Financial Year, I had to remain in India for some 200 days. Here in USA I am getting social security of $ 753/- and there is a deduction of Medicare medical insurance of $99/-. That means I am getting a net credit of $654/- Per month. May I know if the amount of my social security will be added to my income in India and if so roughly how much income tax I will have to pay. Here in USA I file joint tax return with my wife, which is is less than $1000/- PM. Is there any legal way to save some money.
With regards
Surinder
which taxes applicable for an press
sir i want to know that pensioners below 60 years are also liable for education cess on incometax.
As per my knowledge this tax was to be levied at the rate of 2% of income tax inclusive of the existing surcharge. Cess is applicable to all the taxes deducted at source, taxes collected at source. There is now such type of exemption for senior citizen.