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Thursday, February 28, 2013

Highlights of Union Budget 2013-14


The Union finance minister today presented the Budget for the year 2013-14. Some of the key points that were highlighted by Chidambaram in the Budget are:

- No change in slabs and rate for personal income tax.

- Tax credit of Rs 2000 to be provided to every person to having income of up to Rs 5 lakh, this will benefit 1.8 crore people.

- 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore.

- Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent.

- Modified GAAR norms to be introduced from April 1, 2016.

- No change in peak rate of customs duty for non-agriculture products.

- Direct Taxes Code (DTC) bill to be introduced in current Parliament session.

- No change in basic customs duty rate of ten per cent and
service tax rate of 12 per cent.

- Import duty on rice bran oilcake withdrawn.

- Series of concessions granted to Maintenance, Repair and Overhaul (MRO) business in the aviation sector.

- Import duty raised on set-top boxes from 5 to 10 per cent to safeguard interest of domestic producers.

- 10 per cent customs duty to be levied on unprocessed illuminate.

- Import duty raised from 75 to 100 per cent on luxury vehicles.

- Duty free limit on gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female.

- No countervailing duty on ships and vessels.

- Specific excise duty on cigarettes and cigars raised by 18 per cent.

- Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted.

- Vocational courses offered by state-affiliated institutes to be exempted from services tax.

- Duty on mobiles above Rs 2,000 raised from one to six per
cent, based on their maximum retail prices.

- Service tax to be levied on all a/c restaurants.

- One time voluntary compliance scheme for service tax defaulters to be introduced. Interest and penalties to be waived.

- Direct tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700 crore.

- Education cess to continue at 3 per cent.

- Contributions made to central and state government health scheme eligible to tax benefit.

- Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalised.

- Investor Protection Fund set up by depositories will be exempt from tax.

- Transactions on immovable properties usually undervalued.

- TDS of one per cent on value of properties above Rs 50 lakh. Agriculture land exempted.

- Securities Transaction Tax (STT) reduced on equity future, mutual fund.

- Fiscal deficit will be 5.2 per cent in current year and 4.8 per cent in the next fiscal.

- Will redeem our pledge to reduce fiscal deficit to 3 per cent by 2016-17 and revenue deficit to 1.5 per cent of GDP.

- Tax Administration Reform Commission to be set up to regularly review tax law applications.

- In 2011-12, tax-GDP ratio was 5.5 per cent for direct taxes and 4.6 per cent for indirect taxes.

- Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore.

- Plan expenditure pegged at Rs 555,322 crore.

- Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14.

- Low interest rate funds to be provided from Clean Energy Fund for green projects for a period of five years.

- Generation-based incentives to wind energy projects reintroduced, Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy.

- Constraints will not come in the way for providing additional funds for security of the nation.

- Rs 2,03,672 crore, including Rs 86,741 crore capital expenditure to Defence in 2013-14.

- Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH.

- National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs 250 crore.

- Rs 532 crore to make post offices part of core banking.

- Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 2013-14.

- Comprehensive social security package being evolved by convergence of several schemes run by various ministries.

- Investor with stake of 10 per cent or less will be treated as FII; any stake more than 10 per cent will be treated as FDI.

- FIIs will be allowed to participate in exchange traded currency derivatives.

- We will evolve schemes for cities to take up waste to energy projects.

- Small and medium companies to be allowed to listed on MSME exchange without making a public offer. 

- Concessional six per cent interest on loans to weavers.

- Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month.

- Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget.

- Faced with huge fiscal deficit, I have no choice but to rationalise expenditure

- We have brought down headline WPI inflation to 7 per cent and core inflation to 4.2 per cent. Food inflation is worrying

- Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent of budgeted expenditure.

- Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore

- The revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget estimate for this fiscal. In 2013-14, the budget estimate is Rs 16,65,297 crore.

- One overarching goal to provide education and skills to youth for securing jobs in the 2013-14.

- FM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.

- Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

- Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.

- CFM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.

- Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates. 

- Rs 110 crore to be allocated to the department of disability affairs.

- Rs 37,330 crore allocated for Ministry of Health & Family Welfare.

- Rs 1069 crore allocated to Department of Aryush.

- Rs 4,727 crore to be allocated for medical education and research. Rs 1,069 crore to be given to Department of Ayush.

- In the Budget Rs 65,867 crore allocated to Ministry of HRD in 2013-14.

- Medical colleges in six more AIIMS-like institutions to start functioning this year; Rs 1650 crore allocated for the purpose.

- Rs 5,284 crore to various Ministries for scholarships for
SC/ST, OBC and minority students.

- Rs 13,215 crore to be provided for mid-day meal scheme.

- Rs 17,700 crore provided for Integrated Child Development Scheme.

- Rs 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.

- Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS.

- Rs 80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs 33,000 crore for MGNREGA.

- Rs 80,194 crore allocated for rural development schemes.

- States which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II, others will continue with PMGSY-I.

- Rs 14,873 crore for JNNURM for urban transportation in 2013-14 against Rs 7,880 crore in the current fiscal.

- Foodgrain production in 2012-13 will be over 250 million Tons.

- Average annual growth rate of agriculture and allied services estimated at 3.6 per cent in 2012-13 when 250 MT foodgrains was produced

- Rs 27,049 crore allocation to the Agriculture Ministry in 2013-14

- Rs 7 lakh crore target fixed for agriculture credit for 2013-14 compared to Rs 5.75 lakh crore in the current year.

- Eastern Indian states to get Rs 1,000 crore allocation for improving agricultural production.

- Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

- Green revolution in east India significant. Rice output increased in Assam, Odisha, Jharkhand and West Bengal; Rs 1,000 crore allocated for eastern states.

- Rs 5,387 crore to be allocated for integrated watershed programme for farmers in 2013-14, an increase from Rs 3,050 crore in the current fiscal.

- Indian Institute of Biotechnology will be set up at Ranchi.

- Rs 10,000 crore set aside for incremental cost for National Food Security Bill over and above food subsidy.

- Four Infrastructure debt fund have been registered.

- Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14 strictly on capacity to raise funds from the market.

- Rs 5,000 crore will be made available to NABARD to finance construction of godowns and warehouses.

- Government has decided to constitute a regulatory authority for the road sector.

- Many manufacturing projects stalled due to regulatory process.

- A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15 per cent investment deduction allowance apart from depreciation.

- Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity.

- First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14.

- Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget.

- Current account deficit continues to be high due to excessive dependence on oil, coal and gold imports and slowdown in exports.

- India does not have choice between welcoming and spurning foreign investment; it is an imperative.

- Battle against inflation must be fought at all fronts.

- DIPP and Japan's JICA preparing plan for Chennai-Bengaluru Industrial corridor.

- Two new major ports to be set up in West Bengal and Andhra Pradesh

- Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing.

- Policy on exploration of shale gas on the anvil; natural gas pricing policy will be reviewed and uncertainty removed.

- Govt to set up India's first women's bank as a public sector bank by October.

- Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 2016-17.

- 5 million tons Dabhol LNG import terminal to be operate at full capacity in 2013-14.

- FM asks state governments to prepare financial restructuring plan for power distribution companies at the earliest.

- SIDBI's re-financing facility to MSMEs to be doubled to Rs 10,000 crore.

- Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities.

- Rs 500 crore would be allocated for addressing environmental issues faced by textile industry.

- Concessional six per cent interest on loans to weavers.

- Financial Sector Legislative Reforms Commission (FSLRC)
to submit its report next month.

- Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity.

- First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14.

- Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India.

- Rs 14,000 crore capital infusion into public sector banks in 2013-14.

- PSU banks to have ATMs at all their branches by March 31, 2014.

- Rs 6,000 crore to be allocated for rural housing fund in 2013-14.

- All Regional Rural Banks and cooperative banks to be e-linked by this year-end.

- Insurance companies will be empowered to open branches in Tier-II cities with approval of IRDA.

- National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard.

- Public sector general insurance companies to set up adalts to clear disputes related to claims.

- Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers, auto and taxi drivers and sanitation workers.

- Comprehensive social security package being evolved by convergence of several schemes run by various ministries.

- Investor with stake of 10 per cent or less will be treated as FII; any stake more than 10 per cent will be treated as FDI.

- FIIs will be allowed to participate in exchange traded currency derivatives.

- We will evolve schemes for cities to take up waste to energy projects.

- Small and medium companies to be allowed to listed on MSME exchange without making a public offer. 

(Inputs courtesy: PTI)

Monday, February 25, 2013

Read This Small Story- Hope That Makes a BIG Change in YOU




The Professor began his class by holding up a glass with some water in it. He held it up for all to see & asked the students “How much do you think this glass weighs?”
.
’50gms!’….. ’100gms!’ …..’125 gms’ …the students answered.. “I really don’t know unless I weigh it,” said the professor, “but, my question is:

What would happen if I held it up like this for a few minutes?”…. .
‘Nothing’ …..the students said. . ‘Ok what would happen if I held it up like this for an hour?’ the professor asked. ‘Your arm would begin to ache’ said one of the student.

“You’re right, now what would happen if I held it for a day?”. “Your arm could go numb; you might have severe muscle stress & paralysis & have to go to hospital for sure!” ….. Ventured another student & all the students laughed
.
“Very good. But during all this, did the weight of the glass change?” Asked the professor. ‘No’…. Was the answer.  “Then what caused the arm ache & the muscle stress?”. The students were puzzled.  “What should I do now to come out of pain?” asked professor again. “Put the glass down!” said one of the students.

“Exactly!” said the professor.  Life’s problems are something like this.. Hold it for a few minutes in your head & they seem OK. Think of them for a long time & they begin to ache. . Hold it even longer & they begin to paralyze you. You will not be able to do anything.
.
It’s important to think of the challenges or problems in your life, But EVEN MORE IMPORTANT is to ‘PUT THEM DOWN’ at the end of every day before you go to sleep…. That way, you are not stressed, you wake up every day fresh &strong & can handle any issue, any challenge that comes your way!

Moral
 
So, when you start your day today, Remember friend to ‘PUT THE GLASS DOWN TODAY! ‘

Wake up ! Let's Save The Girl Child

Need of the hour is a wake up call to th society to protect the girl child and give her a peaceful childhood bestowed with the basic amenities and education.


Bias based on gender should be abolished.Girls are the victims of child labour.Parents in the lower income strata of the society and below poverty line opt to make their daughters work to generate extra income to ease their financial burden and educate their sons instead.Is it fair to deny girls a chance to be empowered in the future?Even to this day it is a common practice among the affluent in some parts of the country to bring home small maids from their native place to take care of their children and do the household work 24 *7.Can we ever imagine our own kin in such a pathetic situation?


It is absolutely necessary for the girls right from the age of 3 to be aware of /educated on the topic of good and bad touch & to tell the mothers if somebody tries to play mischief.They are the most vulnerable to sexual abuse at that innocent age..it may having a lasting impression,extend well into their adolescence and lead to depression.

Moms need to play a pivotal role in the upbringing of their girls.. make them understand that friendly strangers like lift operators and drivers/attenders of school buses are not to be trusted completely ,escort them wherever they go and also monitor their mood swings..The child should confide in her mother completely and the moms should be ever willing to listen to all that their daughters have to say. A strong bond of trust and confidence should exist between the mother & daughter.


Girls need to be taught right from a very tender age the ways to cope up with pressure from all walks and how to handle issues without wilting. Determination and courage to face challenges is a must.They must be trained to accept a "NO" for an answer where needed and clearly taught that there may be children more talented than them and they should be prepared to accept victory or failure with a balanced mind and strive to improve themselves to face stiff competition.This attitude can help to avert extremes like teen suicide which is prevalent these days.


Inspite of strict laws enforcing marriage only after the age of 18,child marriages are still thriving and flourishing in rural india.The increased rate of teen pregnancy is a source of concern. A strong foundation laid in the formative stage of life moulds the woman of substance who can withstand the toughest of situations and emerge a clear winner in the years to come.


Making a difference to the society... A few women have inspired me by their noble gesture in improving the quality of life of girls in need:  A College girl in my neighbourhood who conducts tuition classes for free to the primary school girls of illiterate parents.  A friend of mine who adopted an infant girl inspite of being the biological mother of a 3 yr old son.  An acquaintance, a spinster by choice is raising a physically challenged girl.


We have hope..lets' do our bit to bring a smile on the faces of the deserving children. 

 MY SWEET DAUGHTER- SAI MEGHANA
 

Saturday, February 23, 2013

Coming soon, Post Bank of India - India Post to enter banking space



The postal department plans to enter the banking business with the Reserve Bank of India deciding to grant new bank licences to entities with credible track-record.
Consultant appointed
Sources said the Department of Posts, which has a strong foot print in rural areas, has appointed Ernst and Young (E&Y) as the consultant for the proposed ‘Post Bank’
“Ernst and Young is expected to submit a detailed project report by April, after which all the necessary measures will be taken up to apply for banking licence,” a source at the Ministry of Communications and Information Technology told PTI.
The sources added that the Department of Post (DoP) might need Cabinet approval for setting up Post Bank of India.
Of the 1.55 lakh post offices in the country, around 24,000 district offices may be ready to offer banking services in the next two years.
The DoP is in process of setting up 1,000 ATMs.
“Post Bank shall not only take care of the banking needs of the rural poor but shall also converge with micro-insurance and micro-remittance services of the DoP,” the source said.
As per data shared with Parliament, there were over 26 crore operational small savings accounts in post offices as on March 31, 2012, having deposits worth Rs.1.9 lakh crore.
                                                                                                                                                Source :The Hindu

Friday, February 15, 2013

Raise I-T Exemption Limit to Rs. 4 lakh: Congress Leaders

Raise I-T exemption limit to Rs 4 lakh: Cong

In a pre-budget meeting with Finance Minister P Chidambaram here on Thursday, Congress leaders have asked the UPA government to increase the taxable income exemption limit to Rs 4 lakh from the current Rs 2 lakh, while suggesting a pro-people budget with sops for the middle class and farmers keeping  the upcoming elections in mind.

The meeting was held at the Congress party headquarters. With the rise in fuel prices impacting the ‘aam aadmi’, the meeting saw suggestions for varied pricing of petrol, diesel and cooking gas for people living below poverty line and low income group. 

Senior party leader Oscar Fernandes suggested there was a need to bring down the dependence on petroleum import and more focus on having alternative sources of energy like ethanol, sources said. Fernandes also wanted the government to reduce tax on bidis, noting that employment levels were coming down in the labour-intensive sector due to current tax slab.

Congress leader Jagdish Tytler suggested that the budget should be formulated in a way that helps the party to connect with people as elections were ahead, sources said. 

AICC Secretary P Sudhakar Reddy mooted raising the tax exemption limit of Rs 2 lakh to Rs 4 lakh, which was endorsed by many other office bearers. He also advised linking Mahatma GandhiNational Rural Employment Guarantee Scheme with agriculture to help meet the shortage of farm labour in the sector, besides offering three-year interest-free loans to small farmers for their children’s education.

Suggestions were also made by party leaders for gender budgeting. Reddy advised the Finance Minister that female assessees could be given higher tax exemption limit. 

There were also demands by many leaders for bringing more clarity on the service tax as it was being interpreted differently in various states. 

Minority Department Chairman Imran Kidwai demanded increase in outlay of the Minority Affairs Ministry and allocation of more funds to minority institutions. He also advised formulation of special scheme for Most Backward Classes for their financial inclusion. 

Senior party leader Ajit Jogi complained that central funds were being diverted in many non-congress ruled states by the respective governments, suggesting some mechanism should be developed to check this, “The finance minister told us what are the difficulties and how the Indian economy was kept at a balance despite the tough global economic scenario. Thirty-two of the 46 office bearers present spoke on various issues related to farmers, weavers, education,health and income tax," party general secretary Janardan Dwivedi told reporters after the meeting.






Tax Rates: Income Tax for AY 2013-14 & 2012-13 for All, Minimum Alternate Tax and all taxable income in IT Act

TAX RATES
INCOME-TAX
Individuals, Hindu undivided families, AOPs, BOIs - The tax rates applicable to individuals are also applicable to a Hindu undivided family, an association of persons, body of individuals or an artificial juridical person. The rates applicable for the assessment years 2012-13 and 2013-14 are as follows :

ASSESSMENT YEAR 2013-14 - Tax rates for the assessment year 2013-14 are given below-

•             FOR A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR BUT NOT MORE THAN 80 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, i.e., BORN DURING APRIL 1, 1933 AND MARCH 31, 1953)—

Net income range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 2,50,000
Nil
Nil
Nil
Rs. 2,50,000 - Rs. 5,00,000
10% of (total income minus Rs. 2,50,000)
2% of income-tax
1% of income-tax
Rs. 5,00,000 - Rs. 10,00,000
Rs. 25,000 + 20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 10,00,000
Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000)
2% of income-tax
1% of income-tax


•             FOR A RESIDENT SUPER SENIOR CITIZEN (WHO IS 80 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR, i.e., BORN BEFORE APRIL 1, 1933)—

Net income range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 5,00,000
Nil
Nil
Nil
Rs. 5,00,000 – Rs. 10,00,000
20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 10,00,000
Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000)
2% of income-tax
1% of income-tax

•             FOR ANY OTHER INDIVIDUAL (BORN ON OR AFTER APRIL 1, 1953), EVERY HUF / AOP / BOI / ARTIFICIAL JURIDICAL PERSON-

Net income range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 2,00,000
Nil
Nil
Nil
Rs. 2,00,000 – Rs. 5,00,000
10% of (total income minus Rs. 2,00,000)
2% of income-tax
1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000
Rs. 30,000 + 20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 10,00,000
Rs. 1,30,000 + 30% of (total income minus Rs. 10,00,000)
2% of income-tax
1% of income-tax


Notes:
1.      Surcharge - Nil
2.      Education cess - It is 2 per cent of income-tax.
3.      Secondary and higher education cess - It is 1 per cent of income-tax.

•             Alternate minimum tax - For the assessment year 2013-14, tax payable by an individual cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

ASSESSMENT YEAR 2012-13 - Tax rates for the assessment year 2012-13 are given below-
•             FOR A RESIDENT WOMAN (WHO IS BELOW 60 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, i.e., BORN ON OR AFTER APRIL 1, 1952)-

Net income  range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 1,90,000
Nil
Nil
Nil
Rs. 1,90,000 - Rs. 5,00,000
10% of (total income minus Rs. 1,90,000)
2% of income-tax
1% of income-tax
Rs. 5,00,000 - Rs. 8,00,000
Rs. 31,000 + 20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 8,00,000
Rs. 91,000 + 30% of (total income minus Rs. 8,00,000
2% of income-tax
1% of income-tax

•             FOR A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR BUT NOT MORE THAN 80 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, i.e., BORN DURING APRIL 1, 1932 AND MARCH 31, 1952)

Net income range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 2,50,000
Nil
Nil
Nil
Rs. 2,50,000 – Rs. 5,00,000
10% of (total income minus Rs. 2,50,000)
2% of income-tax
1% of income-tax
Rs. 5,00,000 – Rs. 8,00,000
Rs. 25,000 + 20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 8,00,000
Rs. 85,000 + 30% of (total income minus Rs. 8,00,000)
2% of income-tax
1% of income-tax


•             FOR A RESIDENT SUPER SENIOR CITIZEN (WHO IS 80 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR, i.e., BORN BEFORE APRIL 1, 1932) –

Net income range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 5,00,000
Nil
Nil
Nil
Rs. 5,00,000 – Rs. 8,00,000
20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 8,00,000
Rs. 60,000 + 30% of (total income minus Rs. 8,00,000)
2% of income-tax
1% of income-tax

•                             FOR ANY OTHER INDIVIDUAL (BORN ON OR AFTER APRIL 1, 1952), EVERY HUF / AOP / BOI / ARTIFICIAL JURIDICAL PERSON–

Net income range
Income-tax rates‡
Education cess
Secondary and higher education cess
Up to Rs. 1,80,000
Nil
Nil
Nil
Rs. 1,80,000 – Rs. 5,00,000
10% of (total income minus Rs. 1,80,000)
2% of income-tax
1% of income-tax
Rs. 5,00,000 – Rs. 8,00,000
Rs. 32,000 + 20% of (total income minus Rs. 5,00,000)
2% of income-tax
1% of income-tax
Above Rs. 8,00,000
Rs. 92,000 + 30% of (total income minus Rs. 8,00,000)
2% of income-tax
1% of income-tax


Notes:
1.      Surcharge - Nil
2.      Education cess - It is 2 per cent of income-tax.
3.      Secondary and higher education cess - It is 1 per cent of income-tax.


Firms - A firm is taxable at the rate of 30 per cent for the assessment years 2012-13 and 2013-14.
Surcharge : Nil
Education cess - It is 2 per cent of income-tax.
Secondary and higher education cess - It is 1 per cent of income-tax.

•             Alternate minimum tax in the case limited liability partnership for the assessment years 2012-13 and 2013-14 - For the assessment years 2012-13 and 2013-14, tax payable by a limited liability partnership cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.
•             Alternate minimum tax in the case a firm (not being limited  liability partnership) for the assessment year 2013-14 - For the assessment year 2013-14, tax payable by a firm (not being limited liability partnership) cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.


Companies - For the assessment years 2012-13 and 2013-14 the following rates of income-tax are applicable:

Company
Rate of income-tax
(per cent)
[see also para 0.1-6]
In the case of a domestic company
In the case of a foreign company
30
•      royalty received from Government or an Indian concern in pursuance of an agreement made by it with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government





50
•      Other income
40

Surcharge - Surcharge is applicable at the rates given below.



If net income
does not exceed
Rs. 1 crore
If income
exceeds Rs. 1 crore
Domestic company
Nil
5%*
Foreign company
Nil
2%*

*It is 2% or 5% of income-tax. Marginal relief is available which is given below—
Marginal relief - In the case of a company having a net income of exceeding Rs. 1 crore, the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income- tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
Education cess - It is 2 per cent of income-tax and surcharge.
Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.


MINIMUM ALTERNATE TAX - The following rate of minimum alternate tax shall be applicable for the assessment years 2012-13 and 2013-14.


If book profit does not exceed
Rs. 1 crore
If book profit exceeds
Rs. 1 crore

IT
SC
EC
SHEC
Total
IT
SC
EC
SHEC
Total
Domestic company
18.5
-
0.37
0.185
19.055
18.5
0.925
0.3885
0.19425
20.00775
Foreign company
18.5
-
0.37
0.185
19.055
18.5
0.37
0.3774
0.1887
19.4361

Note - If book profit of a company for the assessment years 2012-13 and 2013-14 exceeds Rs. 1 crore, the minimum alternate tax cannot exceed the following : (Rs. 18.5 lakh + book profit - Rs. 1 crore) + EC
+ SHEC.
Co-operative societies - The following rates are applicable to a  co-operative society for the assessment years 2012-13 and 2013-14-
(Percent)

Net income range
Rate of income-tax
[See also 0.1-6]
Up to Rs. 10,000
10
Rs. 10,000 - Rs. 20,000
20
Rs. 20,000 and above
30

Surcharge : Nil.
Education cess - It is 2 per cent of income-tax.
Secondary and higher education cess : It is 1 per cent of income-tax.

• Alternate minimum tax - For the assessment year 2013-14, tax payable by a co-operative society cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

Local authorities - Local authorities are taxable at the rate of 30 per cent. Surcharge : Nil.
Education cess - It is 2 per cent of income-tax.
Secondary and higher education cess : It is 1 per cent of income-tax.

• Alternate minimum tax - For the assessment year 2013-14, tax payable cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC

Tax rates specified in the Income-tax Act - The following incomes are taxable at the rates specified by the Income-tax Act and not at the rates :

Section
Income
Income-tax rates†
(1)
(2)
(3)
111A
Short-term capital gains
15
112
Long-term capital gains
20
115A(1)
Dividend received by a foreign company or a non-resident

(a)(i)
non-corporate assessee [*it is not applicable in the case of
dividends referred to in section 115-O]

20*
115A(1)
(a)(ii)
Interest received by a foreign company or a non-resident
non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency



20
115A(1)
(a)(iia)
Interest received from an infrastructure debt fund referred to
in section 10(47)

5
115A(1)
(a)(iiaa)
Interest received from an Indian company specified in
section 194LC (applicable from July 1, 2012, i.e., assessment year 2013-14)


5
115A
(1)(b)
Royalty or fees for technical services received by a foreign
company or non-resident non-corporate assessee from
an Indian concern or Government in pursuance of an agreement
approved by the Central Government and made after—
a. March 31, 1976 but before June 1, 1997 b. May 31, 1997 but before June 1, 2005
c. May 31, 2005




30
20
10
115AB
Income of an overseas financial organisation on transfer of
units purchased in foreign currency being long-term capital gains

10
115AC
Income from bonds or Global Depository Receipts1 or on bonds or Global Depository Receipts1 of a public sector company sold by the Government and purchased in foreign currency or
long-term capital gains arising from their transfer *[not applicable in the case of dividends referred to in section 115-O]



10*
115ACA
Income from Global Depository Receipts held by a resident
individual who is an employee of an Indian company engaged
in information technology software/services††
• Dividend [other than dividend referred to in section 115-O] on Global Depository Receipts issued under employees stock option scheme and purchased in foreign currency
• Long-term capital gain on transfer of such receipts




10
10
115AD
Income in respect of securities received by a Foreign Institutional
Investor as specified1 by the Government
• Short-term capital gain covered by section 111A
• Any other short-term capital gain
• Long-term capital gain
• Other income [*not applicable in the case of dividends referred to in section 115-O]


15
30
10

20*
115B
Profits and gains of life insurance business
12.5
115BB
Winnings from lotteries, crossword puzzles, or race including horse race (not being income from the activity of owning and maintaining race horse) or card game and other game of any sort or from gambling or betting of any form or nature


30
115BBA(1)
(a)/(b)
Income of a non-resident foreign citizen sportsman for
participation  in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sport association by way of guarantee money
-    For the assessment year 2012-13
-    For the assessment year 2013-14




10
20
115BBA
(1)(c)
Income of non-resident foreign citizen (being an entertainer)
for performance in India (applicable from the assessment year 2013-14)


20
115BBC
Anonymous donation
30
115BBD
Income of an Indian company by way of dividends declared, distributed or paid by a specified foreign company (in which the Indian company holds 26 per cent or more of equity shares capital)


15
115BBE
Income referred to in sections 68, 69, 69A, 69B, 69C and 69D (applicable from the assessment year 2013-14)

30
115E
Income from foreign exchange assets and capital gains of
non-resident Indian
a.  income from foreign exchange asset [*not applicable in the case of dividends referred to in section 115-O]
b.  long-term capital gain

20*

10
115JB
Tax on book profits of certain companies
18.5%
115JC
- Alternate minimum tax in the case of a limited liability
partnership (applicable for the assessment year 2012-13)
-    Alternate minimum tax in the case of any taxpayer (including limited liability partnership but other than a company) (applicable from the assessment year 2013-14)

18.5


18.5
161(1A)
Profits and gains of a business in the case of a trust
30
164
Income of private discretionary trust where shares of
beneficiaries are indeterminate

30
164A
Income of an oral trust
30
167A
Income of a firm
30
167B
Income of an association of persons or body of individuals if shares of members are unknown

30
167B(2)
Income of an association of persons or body of individuals if total income of any member (excluding share from the association or body) exceeds the maximum amount not chargeable to tax [*if total income of any member of the association or body is chargeable to tax at a rate higher than
30.9 per cent, then tax shall be charged on that portion of the total income of the association/body which is relatable to the share of such member at such higher rate and the balance of the total income is taxable at a rate of 30.9 per cent]







30*



Notes :
1. Surcharge - The above income-tax rates are subject to surcharge as follows


Assessment year
2012-13 and 2013-14
Individuals/HUF/AOP/BOI
Nil
Artificial juridical person
Nil
Co-operative society, local authority
Nil
Firm
Nil
Domestic company if net income does not exceed Rs. 1 crore
Nil
Domestic company if net income exceeds Rs. 1 crore
5%
Foreign company if net income does not exceed Rs. 1 crore
Nil
Foreign company if net income exceeds Rs. 1 crore
2%

1.      In the case of section 115JB, surcharge is applicable only if book profit exceeds Rs. 1 crore.
2.       Education cess - 2 per cent of sum total of income-tax and surcharge
3.       Secondary and higher education cess : 1 per cent of income-tax and surcharge.

Source: www.incometaxindia.gov.in