Income Tax Rates for the A.Y. 2011-12 [Financial Year 2010-11]

I In case of individual (other than II and III below) and HUF

	Income Level	Income Tax Rate
i.	Where the total income   does not exceed Rs.1,60,000/-.	NIL
ii.	Where the total income exceeds  Rs.1,60,000/- but does not exceed Rs.5,00,000/-.	10% of amount by which the total income exceeds  Rs. 1,60,000/-
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 34,000/- + 20% of the  amount by which the  total income exceeds  Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-.	Rs. 94,000/- + 30% of the  amount by which  the total income exceeds Rs.8,00,000/-.

II. In case of individual being a woman resident in India and below the age of 65 years
at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,90,000/-.	NIL
ii.	Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.	10% of the amount  by which the total income exceeds  Rs.1,90,000/-.
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 31,000- + 20% of the amount by which  the total income exceeds  Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.91,000/- + 30% of  the amount by which  the total income exceeds Rs.8,00,000/-.

III. In case of an individual resident who is of the age of 65 years or more at any time
during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.2,40,000/-.	NIL
ii.	Where the total income exceeds Rs.2,40,000/- but does not exceed Rs.5,00,000/-	10% of the amount by  which the total income  exceeds Rs.2,40,000/-.
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	Rs.26,000/- + 20% of the  amount by which the  total income exceeds  Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.86,000/- + 30% of  the amount by which the total income exceeds Rs.8,00,000/-.

Surcharge: The surcharge on Income Tax for Individuals for total income exceeding
Rs.10 lacs stands removed.
Education Cess: 3% of the Income-tax.

No major change in Income Tax. Only change in slabs to benefit taxpayers.

n a relief to individual tax payers, the government today changed the slabs cutting the rate to 10 per cent for income up to Rs 5 lakh, while leaving the threshold limit for tax-free income unchanged at Rs 1.6 lakh. Income between Rs 5 lakh to Rs 8 lakh will attract 20 per cent tax against the current slab of Rs 3 lakh to Rs 5 lakh. Hitherto, the income between Rs 1.6 lakh and Rs 3 lakh was taxed at the rate of 10 per cent.
In case of income over Rs 8 lakh, tax would be levied at a rate of 30 per cent — which was applicable on income above Rs 5 lakh. The tax concessions would put more money in the hands of consumers.
Finance Minister Pranab Mukherjee also extended income tax exemption to investment in infrastructure bonds by up to Rs 20,000, over and above the existing limit of Rs 1 lakh.
In a major relief to the corporate sector, the government proposed to reduce the surcharge on corporate tax to 7.5 per cent from 10 per cent now.
However, it has increased the Minimum Alternate Tax (MAT) from existing 15 per cent to 18 per cent on book profits of those companies which do not pay tax because of various exemptions.

Source : Business Standard

Koda scam: I-T raids continue, cash and documents seized

The Income Tax raid at the premises of Jharkhand Chief Minister Shibu Soren's private secretary M L Pal residence and others continued for the second day today with the department claiming that it has unearthed more documents which would strengthen the disproportionate assets case against Madhu Koda.
The Income Tax department has made cash seizure totalling Rs 70 lakh during searches at the premises of the alleged associates of former Jharkhand Chief Minister Madhu Koda in connection with the money laundering scam.
Raids have been initiated in different places of Jharkhand and Kolkata. There is a flat of  M L Pal in the southern fringe of the city where the IT sleuths raided and sealed the flat.
"As we are digging deeper, we are getting many important documents which will strengthen our evidence into the illegal investments and hawala transactions involving former chief minister Madhu Koda," a top IT official told PTI.

"The raids are a sequence to the October 31 searches involving Koda and his associates. The current raids have covered some more people," he said.

"Raids at some places have concluded while some will be concluded tonight. But the rest, including Pal's, will take one or two more days.
Source : PTI and own source.

No Direct Taxes Code in Budget

The Direct Taxes Code 2009 is now on the back burner. The Union finance ministry has veered round to the view that its bold move to reform direct taxes should be subjected to further scrutiny. Contrary to earlier expectations, therefore, the Direct Taxes Code 2009 will not be presented to Parliament as a Bill along with the Union Budget for 2010-11 on February 26.

No fresh date has as yet been finalised for the completion of scrutiny of the Code, raising doubts on whether the legislative exercise will have to be put off at least till the monsoon session of Parliament.

A senior government official told Business Standard that there were several “complications” in the Direct Taxes Code 2009 in its current form and it can be presented to Parliament only after these were resolved through more consultation. The new tax provisions included in the draft document were originally planned to become effective from April 2011.

Much of the work on the Direct Taxes Code was completed by the time P Chidambaram left the finance ministry in early December 2008. Pranab Mukherjee, who succeeded Chidambaram as finance minister, told Parliament in July 2009 that a draft Bill would be presented by the end of August and that the Bill would be placed before Parliament in the winter session. The first target was achieved, but not the second, dampening hopes of a major simplification and rationalisation of tax rates and rules for individuals as well as corporations.

The Direct Taxes Code was to have replaced the Income Tax Act by consolidating and amending income tax provisions for all categories of people and institutions. In its current form it would have taxed retirement savings, done away with tax exemptions and brought under the tax purview a number of entities including trusts that pay no tax at the moment. The thrust of the new code was to promote efficiency and equity, Chidambaram had said, by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base.

However, the draft Direct Taxes Code had provoked strong reactions from different quarters. It also sparked off debate on what an ideal tax structure should be in a developing country like India. One of the major oppositions to the Bill came from officers of the Indian Revenue Service, who administer the tax system in the country. They were opposed to many provisions in the draft bill that sought to truncate the many powers currently enjoyed by the Central Board of Direct Taxes (CBDT) and the tax collection bureaucracy.

Industry and trade representatives also came forward with several major suggestions for plugging what they thought were loopholes in the draft Direct Taxes Code. The finance ministry’s decision to place the Code on the back burner seems to have been prompted also by these representations.

The deferral of the Direct Taxes Code is also being viewed by industry as one more instance of how Mukherjee has looked afresh at several proposals and initiatives of his predecessor. In his first Budget in the United Progressive Alliance government in July 2009, Mukherjee had substantially diluted the fringe benefit tax, a controversial fiscal measure introduced by Chidambaram in his 2005 Budget.

Source : Business Standard.