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Do you know what is Tax Credit Statement Form 26 AS and what are the uses of it while filing of Annual Income Tax Return ?

It is a important part of income tax collected in the form of Tax deducted at source (TDS). It is more common in the case of salaried employees (Form 16). As per the income tax act 1961, anyone deducting tax at source is required to file a quarterly return of tax deducted to Director General of Income tax and needs to generate a certificate of TDS in evidence of tax having been paid by the assessee.

Earlier this information is used to be stored manually and there were no transparency of data between tax department and tax payers. As per the income tax act 203AA, with effect from April 1, 2005 income tax department needs to provide to the assessees an annual consolidated statement of TDS which is called as Form 26AS.

Form 26AS is a consolidated tax statement issued under Rule 31AB of Income Tax Rules to facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online. This statement, with respect to a financial year, will include:
  • Details of Tax deducted at source (TDS);
  • Details of Tax collected at source (TCS); and
  • Details of Advance tax/self assessment tax/regular assessment tax etc., deposited in the bank by the taxpayers (PAN holders).
  • Details of Paid refund received during the financial year.
Form 26AS:

Form 26AS has been introduced for the benefit of taxpayers, with the introduction of Form 26AS taxpayers can view there complete tax status in the form of consolidated tax statement and verify the details available in the system of Income tax department with the one available to the taxpayer. If you are a taxpayers, and want to ensure the tax deducted at source (TDS) is reflected correctly in the income tax records then you can check your Form 26AS. Lets take an example: A taxpayer had TDS deduction in the financial year which was also recorded at Tax Information Network (TIN) maintained by the NSDL. According to the NSDL, tax deducted from his income is Rs 25000, whereas the actual deduction happed to his income aggregates Rs 45000. The TDS certificate obtained from various payers reflects the deduction amount as Rs 45000. In such a case a taxpayer can verify his details in Form 26A against the TDS certificate obtained before filing return to get this details corrected and save urself from getting penalising for the inaccurate data of maintained at other end.

In case of any mistake/error with regards to tax deposited by the tax payer through the bank (advance tax or self-assessment tax) – one should contact the branch/bank where the advance tax or self-assessment tax was paid. In case of any mistake/error with regards to tax deducted/collected by the bank and others – one should contact the bank/other person who has deducted/collected such tax.

It is always advisable to verify the proper credits of Taxes paid (mainly TDS and also Advance Tax / Self Assessment Tax) reflected in your Form 26AS before filing your Income Tax Return (ITR) for faster processing.

It helps to taxpayers in following aspect of tax responsibility:
  • Preparing income tax returns
  • Verify detail of tax deducted at source(TDS)
  • Verify detail of tax collected at source
  • Verify detail of tax payment made by taxpayer (advance tax/self assessment tax)
  • Detail of refunds received during the financial year
How to View Form 26AS ?

Option 1: Register for viewing Form 26AS by registering for e-filing on https://incometaxindiaefiling.gov.in/. Registration is immediate, without any cost and does not obligate e-filing,
  • After logging in click on My Account tab
  • There will be an option View Your Tax Credit Statement (Form 26AS)
  • It will take you to Date Of Birth (DOB) verification page
  • In the next step it will ask your permission to be redirected to the NSDL site where you have to press the confirm button
  • You will be re-directed to your Form 26AS and you can select the assessment year (2011-12) in the top right corner for which you want to see the details.
Option 2: Through net banking facility of 19 authorized banks. Login to your net banking account and check if this facility is provided.

Option 3: Through registration with NSDL

The form, however, is no substitute for the advance tax, Form 16 and the TDS certificates that one needs to attach while filing his/her income tax returns.

For More Details Click Here

Balance Sheet and Profit and Loss Account should be in eXtensible Business Reporting Language (XBRL) Mode while filing.

In super session of the Ministry's Circular No. 9/2011 dated 31.03.2011 and 25/2011 dated 12.05.2011, Ministry of Corporate Affairs vide Circular No. 37/2011 dated 07.06.2011 mandated certain class of companies to file Balance Sheets and Profit and Loss Account allongwith Director's and Auditor's Report for the ear 2010-11 onwards by using XBRL taxonomy. The Taxonomy Business Rules, Validity tools etc. required for preparation of the above documents in XBRL, format as per the existing Schedule VI and Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 have been prepared and hosted on the vebsite of the Ministry at www.mca.gov.in. The Frequently Asked Questions (FAQs) about XBRL, have been framed by the Ministry and annexed with the circular for the information and easy understanding of the stakeholders. To enable filing on XBRL, by stakeholders, MCA-21 portal will have XBRL, filing module by July, 2011. Actual date will be informed separately.

Complied By CA-Shilpa Agrawal, BoS
Source: August-2011 The Charted Accountants Students

How to calculate Deductions Under Chapter-VIA (Taxable Limit) for Form 16/16A (TDS Certificate)

Friends, All tax payee well known about Taxable Limit mostly Employee. In case of Computation Income or Tax Plan for forth coming Assessment Year, Salary Person (Employee) have to adjust some exemptions given by Income Tax of India Law. Although these exemptions are also allowed on other income yet it don't need to adjust these exemptions in order to compute TDS. In order to find the amount of TDS on Salary these exemptions are considered very important. Each & every accountant must know these exemptions otherwise they are bound to annoy employees whose TDS are being deducted.

Sections and Exemption Allowed Limit:
  • U/s 80C, 80CCC & 80CCD- the limit of exemption is only 1 Lac (Combined). It mean your expenditure u/s 80C, 80CCC & 80CCD are exempted upto 1 Lac. You will not get any more exemption if you spend more than 1 Lac under these sections.
  • U/s 80CCF (Infrastructure Bond)- If you spend under this section you will get 20000/- more exemption besides above. It means your exemption limit will raise to 1.2 Lac.
  • U/s 80D- 20000/- for Sr. Citizen & 15000/- for others
  • U/s 80DD- 50000/- but 1 Lac for 80% or more disability
  • U/s 80DDB- 40000/- or actually paid whichever is less
  • U/s 80E- 100%
  • U/s 80G- 100% or 50% as per restriction
  • U/s 80RRB- 3 Lac or Actually Received whichever is less
Sections and Its Usages:
  • 80C- Under this section you can invest in PPF, LIC, Repayment of House Loan, FD of Nationalised Bank (5Yrs), Tuition Fee for 2 Children,Deposit in CTD of Post Office Saving Bank Scheme, etc.
  • 80CCC- Premium for Annuity Plans
  • 80CCD- Contribution to Pension Account
  • 80CCF- Investment in Infrastructure Bond
  • 80D- Medical Insurance (For Assessee and Family Members)
  • 80DD- Rehabilitation of Handicapped Dependents, It means expenses on their medical treatment, Deposit to specified scheme for their maintenance
  • 80DDB- Medical Expense on Self or Dependent suffering from specified ailment,i.e., AIDS etc.
  • 80E- Interest on Loan for Higher Studies for self/relative
  • 80G- Various Donations
  • 80GG- House Rent Paid (I will tell you about this calculation under Computation U/s 80GG.)
  • 80U- Employee suffering from physical disability
  • 80RRB- Royalty of a Patent
How to exempt U/s 80GG:
The following three is exempt u/s. 80GG:
  1. Rent Paid minus 10% of Total Income
  2. 24000/- (@ Rs 2000/- PM for 1 Year)
  3. 25% of Total Income
Conditions of above Exemption:
  • Assessee or Spouse or Minor Child should not own residence at the place of employment
  • He should not be in Receipt of House Rent Allowance
  • He should not have self occupied residence in any other place
Tax Exemptions 11 Important Plans (Click Here)
Importance of House Loan (Click Here)
Taxable & Non-Taxable Payments (Click Here)
Exemption u/s 10(14)(ii) (Click Here)

Click Here to Download Income Tax Relief/Benefit/Exemption List

It is most Important while Filing Annual Income Tax Return Check your 26AS Statment, PAN Ledger regarding any Refund & then File.

Friends, I would like to share with you some instructions issued by Income Tax Department while filing the ITR. Each and every Taxpayee/Assessee knows about Form No. 26AS i.e. Annual Statement of PAN ledger. While submitting the Income Tax Return, the Income Tax Department fully instructed to Taxpayee/Assessee that verify your Form No. 26AS or PAN Ledger otherwise you may in trouble or face problems which arise after submitting the Income Tax Return like Refund not Received, Communication with Income Tax Department etc. However to avoid such type of problems and smooth operation verify Form No. 26AS or PAN it definitely solved your all critical problems.

How to Check your tax credits in 26AS statement before filing IT return?
Taxpayers are advised to verify the tax credits available in 26AS statement before filing the Income Tax Return. It will facilitate faster processing and quick refunds. In order to avoid the TDS mismatch i.e if your claim of TDS is higher than the tax credits available in 26AS statement, please contact the Deductor for filing of the correction TDS statement.

Who can Carry ?
  1. It is not mandatory for Individuals Assessee.
  2. It is necessary only for Companies, Partnership Firm, HUF, Government Institution (State or Central) or Trusts etc.
How to check Status ?
To check status of Form 26AS or PAN Ledger with Income Tax Department with folowing sources:
  • Internet Banking - Service - Free
  • e-filling Login - Service - Free
  • Registration to view Tax Credit through Nodal Center. - Service - Chargeable

How to Income Tax e-Filing ? Click Here
Edit your eTDS Return Click Here
Check your Refund Status
Click Here
Click Here to Online Registration for Form 26AS

What are benefits of Agricultural Income & How to Claim it during Income Tax Return Filings?

Friends, it is general demand that how to claim an Agricultural Income while filing of Income Tax Return and how Agriculture Income exempted under the Indian Income Tax Act. It means that income earned from agricultural operations is exempt form tax. The reason for exemption of Agriculture Income from Central Taxation is that the Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State Legislature. However while computing tax on non-agricultural income agricultural income is also taken into consideration.

What does the term Agricultural Income mean?

As per Income Tax Act income earned from any of the under given three sources meant Agricultural Income;

  1. Any rent received from land which is used for agricultural purpose.
  2. Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.
  3. Income attributable to a farm house subject to the condition that building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house etc.

Now income earned from carrying nursery operations is also considered as agricultural income and hence exempt from income tax. In order to consider an income as agricultural income certain points have to be kept in mind:

  1. There must me a land.
  2. The land is being used for agricultural operations.
  3. Agricultural operation means that efforts have been induced for the crop to sprout out of the land.
  4. If any rent is being received from the land then in order to assess that rental income as agricultural income there must be agricultural activities on the land.
  5. In order to assess income of farm house as agricultural income the farm house building must be situated on the land itself only and is used as a store house/dwelling house.

Certain income which is treated as Agriculture Income;

  1. Income from sale of replanted trees.
  2. Rent received for agricultural land.
  3. Income from growing flowers and creepers.
  4. Share of profit of a partner from a firm engaged in agricultural operations.
  5. Interest on capital received by a partner from a firm engaged in agricultural operations.
  6. Income derived from sale of seeds.

Certain income which is not treated as Agricultural Income;

  1. Income from poultry farming.
  2. Income from bee hiving.
  3. Income from sale of spontaneously grown trees.
  4. Income from dairy farming.
  5. Purchase of standing crop.
  6. Dividend paid by a company out of its agriculture income.
  7. Income of salt produced by flooding the land with sea water.
  8. Royalty income from mines.
  9. Income from butter and cheese making.
  10. Receipts from TV serial shooting in farm house are not agriculture income.

Certain points to be remembered;

  1. Agricultural income is considered for rate purpose while computing tax of Individual/HUF/AOP/BOI/Artificial Judicial Person.
  2. Losses from agricultural operations could be carried forward and set off with agricultural income of next eight assessment years.
  3. Agriculture income is computed same as business income.

Service Tax Return is mendatory as e-Return Submission.

Friends, Service Tax Return w.e.f. 01-10-2011 will be submitted through electronic system vide Service Tax Notification No. 43/2011 dated 25th August 2011. Earlier it was not mandatory but now w.e.f. 1-10-2011, Every assessee shall submit the half-yearly return electronically as mandatory.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
*****
Notification No. 43/2011 – Service Tax

New Delhi, the 25th August 2011
Bhadra 3, 1933 (Saka)

G.S.R. 642 (E).- In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-

1. (1) These rules may be called the Service Tax (Fourth Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of October, 2011.

2. In the Service Tax Rules, 1994, in rule 7, -
(a) in sub-rule (2), the proviso shall be omitted;
(b) after sub-rule (2) as so amended, the following sub-rule shall be inserted, namely:-

“(3) Every assessee shall submit the half-yearly return electronically”.

[F. No. 137/99/2011 – Service Tax]


(Deepankar Aron)
Director (Service Tax)


Note.- The principal rules were notified vide notification No. 2/1994 – Service Tax dated the 28th June 1994, published in the Gazette of India, Extraordinary, Part II, section 3, Sub-section (i), vide number G.S.R. 546(E), dated the 28th June, 1994 and were last amended by notification No. 35/2011 - Service Tax, dated the 25th April, 2011, vide number G.S.R. 343 (E), dated the 25th April, 2011.

All Income Tax payment facility through ATMs starts with HDFC Bank

Private sector lender HDFC Bank on Wednesday launched a service whereby its 115 lakh debit card holders can pay income tax through the bank’s ATMs. “With this facility, the bank has given its vast customer base the freedom from waiting in long queues at counters or logging into the internet to pay their taxes,” the bank said in a statement.

The service was flagged off by Controller General of Accounts C R Sundaramurti at the bank’s Deer Park branch here.

The service can now be accessed by the bank’s 115 lakh debit card holders at 5,998 HDFC Bank ATMs in 1,111 cities across the country.

For availing the service, customers will have to register themselves and the ATM payment option will be activated immediately, it said.

For the quarter ended June 30, the bank’s total income was Rs 7,098 crore as against Rs 5,411.0 crore in the year-ago period. Net revenues Rs 3,968 crore in the first quarter of the fiscal as against Rs 3,392 crore in April-June, 2010.

What are the Features of September-2011 for Accounts, Taxation & Others?

(Finalization of Balance Sheet)

For Companies:

  • Due date for Income Tax E-Filing is 30/09/2011. Digital signature is mandatory

For Partnership Firms/ Proprietorships & others ( Tax Audit cases) :

  • Tax Audit for assessee having turnover exceeding Rs 60 Lakhs ( Rs 15 Lakhs in case of specified professions ) Balance sheet for the year ended on 31/03/2011 is to be Finalized and audited on or before 30/9/2011
  • E -filing of Income tax is mandatory now for individuals/ Proprietorship firm & Partnership firms having tax audit. Digital signature is also mandatory now for all assessee having tax audit u/s 44 AB
  • Due date for Income Tax E-filing is 30/9/2011

For TDS (Tax Deducted at Sournce):

  • Quarter 2nd Should be prepared.
  • Q2 should be submit through e-filing & others.



Remember Deductee may be penalized when Form 26AS does not match with Form 16/16A.

For the first time perhaps the Central Board of Direct Taxes has chosen to consciously undermine a hoary law still extant, the one Parliament has chosen not to repeal. The tax administration has been exhorting taxpayers not to set store by the TDS certificates they receive, but by what appears in the Tax Information Network (TIN) as tax credit available to them by way of advance tax, tax collected at source and deducted at source.

What this meant was no matter what the TDS certificates said, the TIN information would be held as final and sacrosanct. And more galling would be a situation where a taxpayer has paid an installment of advance tax, but can't claim credit for the same because the bank with which the amount has been deposited has goofed up.

TIN information is compiled out of what the banks with which tax deducted at source is deposited upload into the system and TDS certificates are issued by employers and others obliged to deduct tax at source.

The peremptory message is in case of discrepancy between the two, the former would prevail. This was the first step in dethroning of TDS certificates through an administrative fiat without the backing of the Parliamentary approval.

Going a step further, the tax administration now has exhorted the tax deductors not to issue Form 16/16A on the basis of their own accounting information, but on the basis of the TIN information. And this time round, the peremptory order is being flashed by the ticker in red appearing on its Web site. While the ticker might be construed as a belated attempt to forestall and pre-empt the discrepancy between TIN and TDS certificates by aligning the two peremptorily, the bottom-line is effective marginalization nay annihilation of the true worth of TDS certificates.

The solution worked out by the CBDT to the problem of discrepancy inevitable in a dual system is ham-handed, to say the least. For, the Income-tax Act, 1961 still says that income-tax returns have to be filed on the basis of TDS certificates. Thus if a person has got in his possession TDS certificates obtained from various companies aggregating to Rs 25,000 whereas the TIN shows only Rs 20,000 to his credit, he can claim credit in his income-tax return only for Rs 20,000. . How can he be expected to bear the resultant interest liability for short payment of tax? And In the first place, how can the department place a burden on him for payment of Rs 5,000 when nothing is due from him and the fault is that of the system. The ham-handed solution being attempted is to ask these companies to look up the TIN, and not their own records before issuing the TDS certificates.

This begs the question - why go through the farce of TDS certificates when TIN is in any case going to overrule them.

The plausible explanation is the seeming respect for the mandate of Parliament that TDS certificates still rule the roost. The farce, confusion and contradiction are all going to be heightened when the Department goes ahead with its proposal evinced in its answer to a FAQ that soon it will start sending individual intimations of tax deducted at source to taxpayers from out of the information available in TIN.

Should this happen they would have two sets of documents in their hands - TDS certificates and the consolidated statement 26AS emanating out of TIN. The Department would like the taxpayers to junk the former if they do not reflect faithfully what has been stated in the statement of tax deducted i.e. 26AS. The ticker seeks to nip this possibility in the bud by calling upon tax deductors to set store by TIN, and not by their own records while issuing the certificates. Shouldn't Parliament step in and assert itself? Does it want to give the quietus to the TDS certificates regime?

A dual regime is always confusing and calls for needless reconciliation. Hence, a single unified regime is desirable. But the mandate for this has to come from the Parliament. While migrating to this regime it must be ensured that taxpayers are not put to trouble which is likely to happen should derelict tax deductors either sit on the tax deducted or are remiss in depositing them on time. Taxpayers should not be made to bear the cross for the shenanigans of the tax deductors or the inefficiency of the banking system or the TIN.

Requirement to Verify your Form 16/16A:

Financial Year: Select Financial Year i.e. 2010-11
Quarter: Select your Quarter i.e. Q1, Q2, Q3 or Q4
TAN of the Deductor: Enter TAN of Deductor
PAN of the Deductee: Enter PAN of Detuctee
Certificate Number: Enter TDS Certificate No.
Total Amount Deducted: Enter TDS Amount which you deducted
To Verify TDS Certificate Click Here
Free Download
Income Tax Calculator

What is Salary perquistites Section-17(2) ?

Friends, Salary Perquisites means any casual emoluments, fees or profit attached to an office in addition to salary and wages. In simple words, it’s a personal advantage. It does not cover a mere reimbursement of any expenditure incidental to the employment.

Like if an employee is provided with a watchman for official use there is no personal advantage to the employee, hence there is no perquisites. If the watchman is provided for personal as well as official use, the value of the perquisites only relating to personal use is taxable. Similarly if the travelling bills for official duties are reimbursed to the employee, there is no advantage to the assesse, so it is not a perquisite.

The perquisites may be in cash or in kind or in the money or money’s worth and also in amenities which are not convertible to the money.

All cash allowance is included in the ordinary meaning of perquisites: - all cash allowance is included and hence taxable under section 17(2) of income tax act. City compensatory allowance, bad climate allowance, shift allowance and incentive bonus are included as perquisites under section 17(2) of income tax act.

A perquisite is taxable as salary only when it is provided by the employer during the continuance of employment: - any perquisites allowed by a person other than employer is taxable as income from other sources. For example tips received by hotel waiters from customers are taxable as income from other sources

Non user of the perquisites by an assesse is of no consequences unless the right to perquisites is foregone before it accrues to him: - there may be circumstances under which the employee may not make use of the perquisites provided by the employer. Where the income is accrued or received but it is subsequently given up, it remain the income of the recipient [CIT vs. Shoorji Vallabhdas and co. (1962) 46 ITR 144 (SC)]. The voluntary forgoing by the employee of the salary due to him is normally a mere application of income and the salary is nonetheless taxable. Unless the assesse forgoes his right of the provision of such perquisites before the income accrues, the notional income has to be brought to charge as perquisites equitant to the value of rent free accommodation [CIT vs. Bawa Singh Chauhan (1984) ITR 8].

Wide scope of the inclusive definition of perquisites: - the definition of the perquisites is inclusive but not limited to them only. The scope of an inclusive definition cannot be restricted only to those words which accrue in definition, but with extend to many other things not mentioned in it. Therefore, any other item not listed in the definition of perquisites will have to be evaluated in accordance with the general and commercial meaning of the word perquisites.
Section 17(2) of income tax perquisites includes.
  • Rent free accommodation under section 17(2) 1
  • Accommodation in concessional rate of rent under section 17(2) 2
  • Any benefit or amenity to the specified employee who is either a director of has a substantial interest in the company or whose income under salaries exceeds Rs. 50000 under section 17(2)3
  • Obligation of the employee paid or reimbursed by the employer under section 17(2)4
  • Any sum payable by the employer to effect an assurance on the life of the assesse or to effect a contract of annuity under section 17(2) 5
  • Prescribed fringe benefits or amenity under section 17(2)6
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Why ITR-4 or ITR-5 File Electonically - Notification

Friends, As per Income-Tax (6th Amendment) Rule, 2011 - Amendment in Rule 12 vide notification No. 27/2011 (F.No.149/68/2011-So(Tpl)), dated 01.07.2011, while filing of Form No. ITR-5 or ITR-4 electronically by using digital signature is mandatory who covered under section 44AB for Firm or Individual/HUF taxpayee.

The following are Income-Tax (Sixth Amendment) Rules, 2011 – Amendment in Rule 12 Notification.

Notification No. 37/2011 [F. No. 149/68/2011-So (Tpl)], Dated 1-7-2011

In exercise of the powers conferred by section 295, read with section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :—

1. (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2011.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962 in rule 12, in sub-rule (3), in the proviso, for clauses (a) and (aa) the following clause shall be substituted, namely :—

“(a) a firm required to furnish the return in Form ITR-5 or an individual or Hindu Undivided Family (HUF) required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable, shall furnish the return for assessment year 2011-12 and subsequent assessment years in the manner specified in clause (ii);”

How to Check your E.P.F. Account Balance ?

Before a few months I will be post the information about E.P.F. Account Balance to check online. Now, E.P.F.O. has updated with online EPF Account Balance.

The following link to check online balance of your EPF Account upto the date, along with the latest approved transactions of settlement/advances/transfer-in/transfer-out etc.
  • Select the EPFO office where your account is maintained and furnish your PF Account number.
  • Leave the extension field blank, in case your account does not have one.
  • You will be asked to enter your name and mobile number. The given mobile number will be recorded along with the PF Account Number.
On successful submission of above information, the details will be sent through SMS to the given mobile number.

Click Here to Check Online EPF Account Balance

Updated Income Tax Slab for Assessment Year 2012-13 (Fin. Yr. 2011-12) & F.Y. 2011-12

Friends, the personal Income Tax Rates for Assessment year 2012-13 for Individuals, HUFs, Association of Persons (AOP) of Body of indivuals (BOI).

Income Tax Rates/Slabs for Assessment Year 2012-13 (Fin.Yr.: 2011-12)

Income Tax Rates/Slabs

Rate (%)

Upto 1,80,000
Upto 1,90,000 (for women)
Upto 2,50,000 (senior citizens)

NIL

1,80,001 – 5,00,000

10

5,00,001 – 8,00,000

20

8,00,001 and above

30

Tax amendments for the FY 2011-12 are mentioned below :

  • Increase in base income tax slab of men and senior citizens.
  • Tax exemption limit remains the same i.e Rs. 20,000 on investment in tax saving Infrastructure bonds.
  • A set of New Direct Tax Codes have been proposed, which will be active from Financial Year 2011.
  • Senior citizen age reduced from 64 years to 60 years.
  • People above 80 years of age to be included in the newly introduced 'Very Senior citizen' category.

Income Tax Rates/Slabs for Assessment Year 2011-12 (Fin.Yr.: 2010-11)

Income Tax Rates/Slabs

Rate (%)

Up to 1,60,000
Up to 1,90,000 (for women)
Up to 2,40,000 (for resident individual of 65 years or above)

NIL

1,60,001 – 5,00,000

10

5,00,001 – 8,00,000

20

8,00,001 upwards

30

Few amendments made to the taxation system for the FY 2010-11:

  • From now onwards there will be only 2 pages in the IT filing form for individuals.
  • More cases can now be appealed against.
  • Rs. 20,000 tax exemption will be provided for investments in certain investment bonds. This is in addition to the already allowed exemption (Rs. 1,00,000) in certain savings instruments.
  • Tax Exemption will be given for contribution to the Central Government Health Scheme (CGHS).
  • New fields have been added to the e-TDS/TCS form. These new fields are Ministry name; PAO / DDO code; PAO / DDO registration no.; State name; and Name of the utility used for return preparation.

Calculate Your Income Tax For Asstt. Year 2012-13 Click Here

How to Take relief from Income Tax for Assessment Year 2012-13
Click Here