November 29, 2011

Tax Planning & Calculations: Savings, Investments

Tax Planning and Calculations, Tax Savings, Tax Invesments,

As the year end draws closer, people are increasinggly looking for the best tax saving options to not only save tax but to secure best investments of their savings. The following post aims to shed light on the complete tax planning process from the scratch. This post on Tax Planning & Calculations: Savings, Investments would be updated regularly based on the latest tax planning updates and any calculation changes

Tax Slabs for the Year 2011 - 2012

Before actually planning your tax savings, it is important to know what exactly is your tax liability and and how much tax you can save through the planning efforts. the tax slabs below can guide on the same

Tax Rates as applicable for different persons for the A.Y. 2011-12 are as under:
 

Tax Rates as applicable for different persons for the A.Y. 2011-12 are as under:

 For resident woman (who is below 65 years of age at any time during the previous year):

 Net Income range      Income Tax rates                   Surcharge      Education Cess

 Upto Rs. 1,90,000       Nil                                           Nil                   Nil

Rs. 1,90,000- Rs.        10% of  (total income             Nil                   3% of Income Tax

5,00,000                      minus Rs. 1,90,000)

Rs. 5,00,000- Rs         Rs. 31,000 + 20% of (total

8,00,000                      income minus Rs. 5,00,000)    Nil                   3% of Income Tax

Above Rs. 8,00,000    Rs. 91,000 + 30% of (total

                                    income minus Rs. 8,00,000)    Nil                   3% of Income Tax

 

 

For resident senior citizen (who is 65 years or more of age at any time during the previous year:

Net Income range      Income Tax rates                   Surcharge      Education Cess

Upto Rs. 2,40,000       Nil                                           Nil                   Nil

Rs. 2,40,000- Rs.        10% of  (total income             Nil                   3% of Income Tax

5,00,000                      minus Rs. 2,40,000)

Rs. 5,00,000- Rs         Rs. 26,000 + 20% of (total

8,00,000                      income minus Rs. 5,00,000)    Nil                   3% of Income Tax

Above Rs. 8,00,000    Rs. 86,000 + 30% of (total

                                    income minus Rs. 8,00,000)    Nil                   3% of Income Tax

 

For any other individual, every HUF/AOP/BOI/artificial judicial person-

Net Income range      Income Tax rates                   Surcharge      Education Cess

Upto Rs. 1,60,000       Nil                                           Nil                   Nil

Rs. 1,60,000- Rs.        10% of  (total income             Nil                   3% of Income Tax

5,00,000                      minus Rs. 1,60,000)

Rs. 5,00,000- Rs         Rs. 34,000 + 20% of (total

8,00,000                      income minus Rs. 5,00,000)    Nil                   3% of Income Tax

Above Rs. 8,00,000    Rs. 94,000 + 30% of (total

                                    income minus Rs. 8,00,000)    Nil                   3% of Income Tax

Surcharge on individual, every HUF/AOP/BOI/artificial judicial person abolished.

Firms:-

A firm is taxable at the rate of 30% for the Assessment Year 2011-12.

Surcharge: Nil

Education Cess: 3% of Income Tax + Surcharge( if applicable).

Companies:-

A domestic company is taxable at the rate of 30% for the Assessment Year 2011-12.

Surcharge: 7.5% of Income Tax if net income exceeds Rs. 1 crore.

                   Nil if income does not exceed Rs. 1 Crore.

Education Cess: 3% of Income Tax + Surcharge( if applicable).

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