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Income Tax F.Y 2012-13 A.Y 2013-14

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DTC F.Y 2012-13

Personal Income Tax Slabs – Basic Exemption Limits Raised!
In a big relief for the individual taxpayers, the new DTC has proposed widening of personal income-tax slabs marginally. The Cabinet-approved Bill proposes widening of the tax slabs with lowest rate of:
10% for Rs. 2-5 lakh taxable income (current slab Rs.1.6-5 lakh)
20% for Rs.5-10 lakh (current slab Rs.5-8 lakh) and
30% for above Rs.10 lakh taxable income group of people (current slab above Rs.8 lakh).
If you’re a Senior citizen or women, there is good news for you – the threshold income has been fixed at a higher Rs.2.5 lakh as against Rs.2 lakh for standard categories.

PERSONAL INCOME TAX
(Amount in ‘ lakh)
10%
20%
30%
Now
1.6-5
5 L -8L
8L & above
DTC I
1.6-10
10L -25 L
25L & above
Likely
5-Feb
5-10
10L & above
# Exemption limit to be raised from ’1.6 lakh to ’2 lakh 
# Further relief for women, senior citizens expected
 
# Corporation tax rate stays at 30%, but no cess or surcharge proposed
 
# MAT rate to be raised from 18% to 20% of book profits
                                                                         
Higher Corporate Tax
On the Corporate tax front, the DTC Bill cleared by Cabinet has sought to retain the present level of 30% (for domestic companies), but inclusive of 10% surcharge and a 3% education cess. However, the above figure fall trifle short of expectations of the corporate lobby which stood at 25%, as proposed by the DTC draft released earlier.
Minimum Alternate Tax @20% – A Dampener!
The Bill seeks to impose Minimum Alternate Tax (MAT) at 20% of the book profit as against 18% being levied currently on the Indian companies. The original DTC draft had proposed to calculate MAT on gross asset base which could have translated into effective higher tax rate based on huge asset base for the companies operating in capital-intensive sectors such as infrastructure and capital goods. But, owing to sharp criticism, the levy is to be maintained on book profits, as now.
Further, the axe is likely to fall on Indian IT companies with the advent of DTC regime which would call for the end of “Tax holidays” enjoyed by these companies. This step will bring these IT companies on par with other industries prevailing in India.

1 comments:

jashn samra said...

Every Year we as a Tax payers find various tax saving schemes and also know to check the tax liability as per the income. This blog contain good information which shows Income Tax Slab for every individual, senior citizens and very senior citizens.

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