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July 5, 2011INTRODUCTION
The Indian Income tax Act prescribes different tax slabs for Senior citizens, Women & Individuals including AOP (Association of Person), BOI (Body of Individuals) & HUF (Hindu Undivided Family).
Note: There is a difference between the FY ie. Financial Year & AY ie. Assessment Year. Financial year is the current year for which the tax needs to be calculated. Assessment year is the year succeeding the financial year. Hence for the current year, FY is 2011-2012 & AY is 2012-2013.Read about Basic Knowledge of Income Tax in India Definitions
STEPS
To calculate the total income tax liability, one needs to follow the below mentioned process:
- Calculate your gross total income. This includes gross income from the five sources of income – Income from Salary, Business/ Profession, Capital Gains, House Property & Income from other sources.
- Calculate the net deductions for example donations, investments and savings such as provident fund subscriptions, Life Insurance Premiums etc.
- The net taxable income is gross total income less net deductions.
- Then the appropriate income tax rate is applied to calculate the total tax liability.
- Education Cess of 3% is applied on the tax payable to arrive at the total tax payable. Relief under various sections would be applied on this total tax.
TAX SLABS FOR THE LAST FIVE YEARS IS GIVEN BELOW:
Tax Slab for FY 2007-2008:
For Individuals including AOP, BOI & HUF
- Upto Rs.1,10,000 – Nil
- Above Rs.1,10,000-1,50,000 – 10%
- Above Rs.1,50,000-2,50,000 – 20%
- Above Rs.2,50,000 – 30%
For Woman resident in India, below 65 years of age
- Upto Rs.1,45,000 – Nil
- Above Rs.1,45,000-1,50,000 – 10%
- Above Rs.1,50,000-2,50,000 – 20%
- Above Rs.2,50,000 – 30%
For Senior Citizens (65 years or more)
- Upto Rs.1,95,000 -Nil
- Above Rs.1,95,000-2,50,000 – 20%
- Above Rs.2,50,000 – 30%.
A surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs 10,00,000. This surcharge is subject to marginal relief. The net income tax and surcharge shall not exceed the total amount payable as income tax on income of Rs. 10,00,000 by more than the amount of total income that exceeds Rs. 10,00,000.
An Education cess of 3% is applicable on income tax, inclusive of surcharge if there is any.
Tax Slab for FY 2008-2009:
For Individuals including AOP, BOI & HUF
- Upto Rs.150,000 – Nil
- Above Rs.1,50,000-3,00,000 – 10%
- Above Rs.3,00,000-5,00,000 – 20%
- Above Rs.5,00,000 – 30%
For Woman resident in India, below 65 years of age
- Upto Rs.1,80,000 – Nil
- Above Rs.1,80,000-3,00,000 – 10%
- Above Rs.3,00,000-5,00,000 – 20%
- Above Rs.5,00,000 – 30%
For Senior Citizens (65 years or more)
- Upto Rs.2,25,000 -Nil
- Above Rs.2,25,000-300,000 – 10%
- Above Rs.3,00,000-5,00,000 – 20%
- Above Rs.5,00,000 – 30%.
A surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs 10,00,000.
An Education cess of 3% is applicable on income tax, inclusive of surcharge if there is any.
Tax Slab for FY 2009-2010:
For Individuals including AOP, BOI & HUF
- Upto Rs.1,60,000 – Nil
- Above Rs.1,60,000-3,00,000 – 10%
- Above Rs.3,00,000-5,00,000 – 20%
- Above Rs.5,00,000 – 30%
For Woman resident in India, below 65 years of age
- Upto Rs.1,90,000 – Nil
- Above Rs.1,90,000-3,00,000 – 10%
- Above Rs.3,00,000-5,00,000 – 20%
- Above Rs.5,00,000 – 30%
For Senior Citizens (65 years or more)
- Upto Rs.2,40,000 -Nil
- Above Rs.2,40,000-300,000 – 10%
- Above Rs.3,00,000-5,00,000 – 20%
- Above Rs.5,00,000 – 30%.
A surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs 10,00,000.
An Education cess of 3% is applicable on income tax, inclusive of surcharge if there is any.
Tax Slab for FY 2010-2011:
For Individuals including AOP, BOI & HUF
- Upto Rs.1,60,000 – Nil
- Above Rs.1,60,000-5,00,000 – 10%
- Above Rs.5,00,000-8,00,000 – 20%
- Above Rs.8,00,000 – 30%
For Woman resident in India, below 65 years of age
- Upto Rs.1,90,000 – Nil
- Above Rs.1,90,000-5,00,000 – 10%
- Above Rs.5,00,000-8,00,000 – 20%
- Above Rs.8,00,000 – 30%
For Senior Citizens (65 years or more)
- Upto Rs.2,40,000 -Nil
- Above Rs.2,40,000-5,00,000 – 10%
- Above Rs.5,00,000-8,00,000 – 20%
- Above Rs.8,00,000 – 30%.
A surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs 10,00,000.
An Education cess of 3% is applicable on income tax, inclusive of surcharge if there is any.
Tax Slab for FY 2011-2012:
For Individuals including AOP, BOI & HUF
- Upto Rs.1,80,000 – Nil
- Above Rs.1,80,000-5,00,000 – 10%
- Above Rs.5,00,000-8,00,000 – 20%
- Above Rs.8,00,000 – 30%
For Woman resident in India, below 65 years of age
- Upto Rs.1,90,000 – Nil
- Above Rs.1,90,000-5,00,000 – 10%
- Above Rs.5,00,000-8,00,000 – 20%
- Above Rs.8,00,000 – 30%
For Senior Citizens (65 years or more)
- Upto Rs.2,50,000 -Nil
- Above Rs.2,50,000-5,00,000 – 10%
- Above Rs.5,00,000-8,00,000 – 20%
- Above Rs.8,00,000 – 30%.
A surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs 10,00,000.
An Education cess of 3% is applicable on income tax, inclusive of surcharge if there is any.