Income Tax Rate for the F.Y. 2011-12

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  The Income Tax Rates applicable for the financial year 2011-12 (Assessment year 2012-13) have been revised. The following is the New Income Tax structure for the year 2011-12.
  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.1,80,000/-.	NIL
  ii.	Where the total income exceeds Rs.1,80,000/- but does not exceed Rs.5,00,000/-.	10% of amount by which the total income exceeds  Rs. 1,80,000/-
  iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 32,000/- + 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. 92,000/- + 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 60 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 60 years 
  or more at any time during the previous year:-

  	Income Level	Income Tax Rate
  i.	Where the total income does not exceed Rs.2,50,000/-.	NIL
  ii.	Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-	10% of the amount by which the total income exceeds Rs.2,50,000/-.
  iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	Rs.25,000/- + 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.85,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

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

  	Income Level	Income Tax Rate
  i.	Where the total income does not exceed Rs.2,50,000/-.	NIL
  ii.	Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-	Nil
  iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	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.60,000/- + 30% of the  amount by which the total income exceeds Rs.8,00,000/-.

  Education Cess: 3% of the Income-tax.
  
  

CBDT to examine the proposal of exemption of filing return for salaried taxpayer

CBDT to establish more CPCs, including one in Kolkata.
The Income Tax department is open to examining a proposal to exempt them from the annual chore.

Asked whether the department would think about doing away with Income Tax returns for employees, who had no other income apart from salaries in a financial year, Central Board of Direct Taxes chairman Sudhir Chandra said the department would certainly consider the proposal.

He agreed that for a substantial chunk of salaried employees, savings bank interest is the only additional income and that in most cases, this not substantial.

This proposal, if approved, will benefit a large section of people and would reduce the I-T department's workload in a big way.

Of the country's 35 million taxpayers, roughly half are salaried employees.

The proposal to do away with returns for salaried taxpayers was earlier internally mooted within CBDT a few years ago.

The argument in favour of the proposal was that income records for this class of taxpayer were available with both employers and banks.

Chandra also promised small taxpayers another major relief. He said the I-T department is planning to release all small-value refunds before March 31.

"I will ask my officials to give most refunds by the end of the current financial year," he said.

"We will try to clear most refunds in a month. At least small refunds can be given by March 31," Chandra added.

The newly-appointed chairman said he would communicate this to his officials.

Some of the refunds will be given to taxpayers directly through State Bank of India under the refund banker scheme.

Under this, tax refunds are sent to taxpayers by State Bank of India, either through the electronic clearing service mode or in physical form.

The scheme was launched four years ago in Delhi and Patna and later extended to other cities.

In 2009-10, the I-T department gave over Rs 58,000 crore (Rs 580 billion) in refunds, which was 50 per cent more than the previous year.

CBDT has increased its target for processing refunds to Rs 70,000 crore (Rs 700 billion) in the current financial year.

Refunds increased by 19.5 per cent to Rs 44,000 crore (Rs (Rs 440 billion) up to December, 2010.

The I-T department has opened a Central Processing Centre in Bengaluru for faster processing of claims for electronically-filed returns.

It will roll out three more centres in the Manesar, Pune and Kolkata.

Source : Rediff News

Union Budget 2011: Income tax exemption limit raised to Rs 1.8 lakh

Finance Minister Pranab Mukherjee on Monday proposed to raise the income tax exemption limit for general tax payers to Rs 1.80 lakh per annum from Rs 1.60 lakh at present and introduced a high new tax slab for senior citizens of 80 years and above. 

Unveiling the Budget proposals for 2011-12 in the Lok Sabha, he also proposed to reduce the age limit for consideration as senior citizens from 65 years to 60. 

Senior citizens will get tax exemption for income up to Rs 2.5 lakh, higher from Rs 2.4 lakh now. 

As per the announcement, the increase in the income tax exemption limit for general tax payers (excluding women and senior citizens) to Rs 1.8 lakh per annum would translate into a benefit of Rs 2,000 for all tax payers. 

At present, the general tax payers earning more than Rs 1.6 lakhs per annum are required to pay income tax. 

Introducing a new tax slab for very senior citizens (80 years and above), Mukherjee said, they will not have to pay any tax for annual income up to Rs 5 lakh.
Source : Economic Times

Coins in Denomination of Rs. 150 and Rs. 5 to Commemorate Completion of 150 Years of Income Tax

Union Finance Minister Shri Pranab Mukherjee said that direct taxes are now the major resource provider to the Central Government for undertaking developmental work. The Finance Minister said that direct Taxes collections have grown at an average annual rate of 24 percent in the last five years and has nearly trebled fromRs.1,32,771 crore in financial year 2004-05 to aboutRs.3,78,000 crore in financial year 2009-10. He said that direct taxes’ share in GDP has also increased from 4.1 percent to 6.1 percent of the Gross Domestic Product (GDP). The Finance Minister Shri Mukherjee was speaking at a function here today after releasing the commemorative coins in denomination of Rs 150 and Rs.5 to mark the completion of year long celebrations of 150 years of Income Tax .The function was also attended by Shri S.S.Planimanickam, MOS(Revenue), Ms Sushma Nath Finance Secretary, Dr Kaushik Basu,          Chief Economic Adviser, Shri Sunil Mitra, Revenue Secretary, Shri R.Gopalan, Secretary, Economic Affairs, Chairman,CBDT and Chairman, CBEC, members of CBDT and senior officials of the Finance Ministry among others.

The Finance Minister Shri Pranab Mukherjee said that direct taxes  collections have registered a growth of 20%during the current year so far and have reached nearlyRs.3,35,000 crores. He said that this sustained growth has been possible due to rationalisation of tax structure, improvement in tax administration and persistent efforts of the employees of Income Tax department.

The coins minted under the authority of the Central Government, commemorate “Income Tax – 150 years of Building India.” The reverse faces of the coins bear the portrait of “Chanakya and Lotus with Honeybee” at the centre representing his famous lines, “..... Ideally, governments should collect taxes like a honeybee, which sucks just the right amount of honey from the flower so that both can survive.....”. Just below the portrait of Chankya, the word “Chanakya” is written in Hindi and English. The left and right peripheries of the coins are flanked with words “Income Tax-150 years of Building India” in both Hindi and English.The one hundred and fifty rupees coin is not only unique for its denomination but also its size and metal composition. This 44 millimetres circular coin is made of 50% silver.

        Earlier welcoming the Finance Minister,Chairman,CBDT Shri Sudhir Chandra said that release of coins in denominations of Rs. 150 and Rs. 5 today by the Union Finance Minister Shri Mukherjee to commemorate this event marks a significant milestone in the history of the Income Tax Department. The yearlong celebrations were inaugurated by Shri Pranab Mukherjee, Hon’ble Union Finance Minister on 24^th July 2010 to mark completion of 150 years of income tax in India at a grand opening ceremony at FICCI Auditorium inNew Delhi. 

Shri Chandra said during the year long celebrations, the Finance Minister had released the Citizen’s Charter and Vision-2020 document of Income Tax Department on completion of 150 years of Income Tax in India.

In the legislative history of India, income tax was introduced for the first-time vide the Act No. XXXII of 1860 imposing duties on profits arising from property, professions, trades & offices. It was passed by the Legislative Council of India and received the assent of the Governor General on the 24^th July 1860. This Act was the precursor to the modern income tax law in the country.

Survey suggests to raise income tax exemption limit to Rs 3 lakh

he government must increase the personal income tax exemption limit to at least Rs 3 lakh from Rs 1.6 lakh at present in the upcoming Budget for giving relief to taxpayers from high inflation, majority of CEOs surveyed by industry body Assocham has said.