Tax Reckoner 2012-13

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Tax Reckon-er 2012-13 (Snapshot) Posted: 16 Apr 2012 12:49 PM PDT A  brief  snapshot  for  tax  rates  applicable  for  the  financial  year  2012-13  with  effect  from  April  01, 2012  covering  Individual, women,  senior  citizen,  very  senior  citizen  (above age of 80),  special  rates  for  non-resident,  capital  gain  tax,  Security  Transaction Tax  (STT)  on  share/mutual funds,  tax  slab  on  mutual  fund  dividends  paid  by  the  fund,  where  as  dividend  in  hands  of  investors  is  tax  free. Income Tax Rates For Individuals, Hindu Undivided Family, Association of Persons, Body of Individuals and Artificial juridical persons. Total Income Tax Rates Up to Rs. 2,00,000 (*1)(*2) NIL Rs. 2,00,001 to Rs. 5,00,000 10% Rs. 5,00,001 to Rs. 10,00,000 20% Rs. 10,00,001 and above 30% (*1) In the case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 2,50,000. (*2) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs. 5,00,000. (3) Surcharge is not applicable. (4) Education cess is applicable @ 3% on income tax. Personal Tax Scenarios (Amount in Rupees) Individual Income Level Income Table >>>>>> 5,00,000 10,00,000 15,00,000 Tax in FY 2011-12 329.60 156,560.00 311,060.00 Tax in FY 2012-13 30,900.00 133,900.00 288,400.00 Effective Tax Savings 2,060.00 22,660.00 22,060.00 Resident senior citizen (age of 60 years but below 80 years) Income Level Tax in FY 2011-12 25,750.00 149,350.00 303,850.00 Tax in FY 2012-13 25,750.00 128,750.00 283,250.00 Effective Tax Savings  Nil 20,600.00 20,600.00 Resident women below 60 years Income Level Tax in FY 2011-12 31,930.00 155,530.00 310,030.00 Tax in FY 2012-13 30,900.00 133,900.00 288,400.00 Effective Tax Savings 1,030.00 21,630.00 21,630.00 Resident very senior citizen at the age of 80 years and above Income Level Tax in FY 2011-12 Nil 123,600.00 278,100.00 Tax in FY 2012-13 Nil 103,000.00 257,500.00 Effective Tax Savings Nil 20,600.00 20,600.00 Special rates for non-residents (1) The following incomes in the case of non-resident are taxed at special rates on gross basis: Nature of Income Rates*1 Dividend (*2) 20% Interest received on loans given in foreign currency to Indian concern or Government of India. 20% Income received in respect of units purchased in foreign currency of specifies Mutual Funds / UTI 20% Royalty or fees for technical services For Agreements entered into: - After 31 May 1997 but before 1 June 2005 –@ 20% - After 1 June 2005 – @ 10% Interest income from a notified infrastructure debt fund 5% Interest on FCCB, FCEB / Dividend on GDRs(b) 10% (*1) These rates will further increase by surcharge and education cess. (*2) Other than dividends on which DDT has been paid. (3) In case the non-resident has a Permanent Establishment (PE) in India and the royalty/ fees for technical services paid is effectively connected with such, the same could be taxed at 40% (plus surcharge and education cess) on net basis. (2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus surcharge and education cess. Capital Gains Particulars Short-Term capital Gain Tax rates (*a) Long-Term capital Gain Tax rates (*a) Sale transactions of equity shares / unit of an equity oriented fund which attract STT 15% Nil Sale transaction other than mentioned above: Individuals (resident and non-residents) Progressive slab rates 20% with indexation; 10% without indexation (for units/ zero coupon bonds) Partnerships (resident and non-residents) 30% 20% with indexation; 10% without indexation (for units/ zero coupon bonds) Resident Compaies 30% 20% with indexation; 10% without indexation (for units/ zero coupon bonds) Overseas financial organisations specified in section 115AB 40% (corporate) 30% (non-corporate) 10% FII 30% 10% Other Foreign companies 40% 20% / 10% Local authority 30% 10% without indexation (for units/zero coupon bonds) / 20% (for others) Co-operative society rates Progressive slab 10% without indexation (for units/zero coupon bonds) / 20% (for others) (*a) These rates will further increase by applicable surcharge & education cess. (2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus surcharge and education cess. Securities Transaction Tax (STT) STT is levied on the value of taxable securities transactions as under. Transaction Rates Payable By Purchase/ Sale of equity shares, units of equity oriented mutual fund (delivery based)@ 0.100% Purchaser/Seller Sale of equity shares, units of equity oriented mutual fund (non –delivery based) 0.025% Seller Sale of an option in securities 0.017% Seller Sale of an option in securities, where option is exercised 0.125% Purchaser Sale of a futures in securities 0.017% Seller Sale of unit of an equity oriented fund to the Mutual Fund 0.250% Seller @ effective 1 July 2012 Snapshot of Tax rates specific to Mutual Funds >The rates are applicable for the financial year 2012-13 and are subject to enactment of the Finance Bill, 2012. >Tax Implications on Dividend received by Unitholders Individual/ HUF Domestic Company NRI* Dividend Equity oriented schemes Nil Nil Nil Debt oriented schemes Nil Nil Nil Tax on distributed income (payable by the scheme) rates Equity oriented schemes ** Nil Nil Nil Debt schemes 12.5% +(5% of 12.5%) Surcharge +(3% of 13.125%) Cess = 13.519% 30% +(5% of 30%) Surcharge +(3% of 31.5%) Cess = 32.445% 12.5% +(5% of 12.5%) Surcharge +(3% of 13.125%) Cess = 13.519% Money market and Liquid schemes 25% +(5% of 25%) Surcharge +(3% of 26.25%) Cess = 27.038% 30% +(5% of 30%) Surcharge +(3% of 31.5%) Cess = 32.445% 25% +(5% of 25%) Surcharge +(3% of 26.25%) Cess = 27.038% Capital Gains Taxation Long Term Capital Gains (units held for more than 12 months) Equity oriented schemes ** Nil Nil Nil Other than equity oriented schemes 10% without indexation or 20% with indexation whichever is lower + 3% Cess 10% without indexation or 20% with  indexation whichever is lower+ 5% Surcharge# + 3% Cess 10% without indexation or 20% with indexation whichever is lower + 3% Cess Without indexation 10.300% 10.815% 10.300% With indexation 20.600% 21.630% 20.600% Short Term Capital Gains (units held for 12 months or less) Equity oriented schemes ** 15% + 3% Cess = 15.450% 15% + 5% Surcharge# + 3% Cess = 16.223% 15% + 3% Cess = 15.450% Other than equity oriented schemes 30%^ + 3% Cess = 30.900% 30% +5% Surcharge# + 3% Cess = 32.445% 30%^ + 3% Cess = 30.900% # In case of a domestic company surcharge of @ 5% shall be levied if the total income exceeds Rs. 1 Crore subject to marginal relief. *The short term/long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors only. ** Securities transaction tax (STT) will be deducted on equity funds at the time of redemption and switch to the other schemes. Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought / sold ^ Assuming the investor falls into highest tax bracket. Tax Deducted at Source (Applicable only to NRI Investors) Short term capital gains Long term capital gains Equity oriented schemes 15.45% NIL Other than equity oriented schemes 30.90% 20.600%# Disclaimer : The above information is for general information purposes only and does not constitute legal or tax advice. Individuals should consult their own tax consultant  for their investment/tax purposes. (E&OE)

Thanks and Regards 
 
Rohit Saxena

Phone No: 09899365905
Mail Id: simmi9sep@gmail.com

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