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The Basics of Value Added Tax in India

Introduced after much delay and opposition, Value Added Tax or VAT was introduced in India on April 1, 2005 at the rate of 12.5 %. This tax is designed to make accounting more transparent, cut trade barriers and boost tax revenues. Read more…

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Categories: Taxation

Budget 2011-12: Cheers for the male fraternity

While the Union Budget 2011-12 did not propose major changes on the personal income tax front, men (up to the age of 60 years) now have reasons to cheer. Individuals between 60-65 years of age (senior citizens) get a surprise and those above 80 years (very senior citizens) can feel great about living, still earning and saving so much..!

Read more…

Categories: Taxation

Highlights of Union Budget 2011-12

Basic Thrust Read more…

Direct Tax Collections in India: Well above target

November 12, 2010 Leave a comment

A healthy growth in profits of India Inc is well reflected by a robust 25.4% growth in corporate tax collections in October 2010 to Rs11,818 crore (Rs9,424 crore in October 2009). This resulted in cumulative growth in corporate tax of 22.1% in April-October 2010.

It must be noted that direct tax collections during April-October 2009 had risen by only 3.9%, mainly on account of a global slowdown. Thus, growth for the current period has a cushion of the low base in the previous year. Read more…

Categories: Economic Growth, Taxation

Personal Income Tax Slabs for FY ’11

April 16, 2010 3 comments

With the beginning of the new financial year 2010-11, I thought it would be helpful to update changes in the Personal Income Tax Slabs.

India Infoline in one of its reports on the Union Budget gave details on the changes in personal IT slabs:

  Male Female
Taxable Income (Rs) Pre-Budget (Rs) Post-Budget (Rs) Savings   (Rs) Pre-Budget (Rs) Post-Budget (Rs) Savings   (Rs)
2,00,000 4,120 4,120 0 1,030 1,030 0
3,00,000 14,420 14,420 0 14,420 14,420 0
5,00,000 55,620 35020 20,600 52,530 31,930 20,600
8,00,000 1,48,320 96,820 51,500 1,45,229 93,730 51,500
9,00,000 1,79,219 1,27,719 51,500 1,76,129 1,24,629 51,500
11,00,000 2,65,121 2,08,471 56,650 2,61,722 2,05,072 56,650
12,00,000 2,99,111 2,42,461 56,650 2,95,712 2,39,062 56,650
15,00,000 4,01,081 3,44,431 56,650 3,97,682 3,41,032 56,650
20,00,000 5,71,031 5,14,381 56,650 5,67,632 5,10,982 56,650
Note: Education cess @ 3% and 10% surcharge on the income above Rs10 lakh

Taxable Income

FY 2009-10

FY 2010-11

From To Tax Rate (%) From To Tax Rate (%)

Male

0 160,000 0 0 160,000 0
160,001 300,000 10 160,001 500,000 10
300,001 500,000 20 500,001 800,000 20
500,001 onwards 30 800,001 onwards 30

Female

0 190,000 0 0 190,000 0
190,001 300,000 10 190,001 500,000 10
300,001 500,000 20 500,001 800,000 20
500,000 onwards 30 800,001 onwards 30

Senior Citizen

0 240,000 0 0 240,000 0
240,001 300,000 10 240,001 500,000 10
300,001 500,000 20 500,001 800,000 20
500,000 onwards 30 800,001 onwards 30

Hope this info helps you understand your tax liability. So get set and start tax planning from today!

Categories: Taxation