Income tax rates for AY 2012-13 & AY 2013-14

INCOME-TAX

Individuals, Hindu undivided families, AOPs, BOIs - The tax rates applicable to individuals are also applicable to a Hindu undivided family, an association of persons, body of individuals or an artificial juridical person. The rates applicable for the assessment years 2012-13 and 2013-14 are as follows :

ASSESSMENT YEAR 2012-13 - Tax rates for the assessment year 2012-13 are given below—

• FOR A RESIDENT WOMAN (WHO IS BELOW 60 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, i.e., BORN ON OR AFTER APRIL 1, 1952)—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 1,90,000 Nil Nil Nil
Rs. 1,90,000 – Rs. 5,00,000 10% of (total income minus Rs. 1,90,000) 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 8,00,000 Rs. 31,000 + 20% of (total income minus  Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 8,00,000 Rs. 91,000 + 30% of (total income minus Rs. 8,00,000) 2% of income-tax 1% of income-tax

• FOR A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR BUT NOT MORE THAN 80 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, i.e., BORN DURING APRIL 1, 1932 AND MARCH 31, 1952)—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 2,50,000 Nil Nil Nil
Rs. 2,50,000 – Rs. 5,00,000 10% of (total income minus Rs. 2,50,000) 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 8,00,000 Rs. 25,000 + 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 8,00,000 Rs. 85,000 + 30% of (total income minus Rs. 8,00,000) 2% of income-tax 1% of income-tax

• FOR A RESIDENT SUPER SENIOR CITIZEN (WHO IS 80 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR, i.e., BORN BEFORE APRIL 1, 1932)—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 5,00,000 Nil Nil Nil
Rs. 5,00,000 – Rs. 8,00,000 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 8,00,000 Rs. 60,000 + 30% of (total income minus Rs. 8,00,000) 2% of income-tax 1% of income-tax

 • FOR ANY OTHER INDIVIDUAL (BORN ON OR AFTER APRIL 1, 1952), EVERY HUF/AOP/BOI/ARTIFICIAL JURIDICAL PERSON—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 1,80,000 Nil Nil Nil
Rs. 1,80,000 – Rs. 5,00,000 10% of (total income minus Rs. 1,80,000) 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 8,00,000 Rs. 32,000 + 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 8,00,000 Rs. 92,000 + 30% of (total income minus Rs. 8,00,000) 2% of income-tax 1% of income-tax

Notes:

1. Surcharge Nil

2. Education cess - It is 2 per cent of income-tax.

3. Secondary and higher education cess - It is 1 per cent of income-tax.

ASSESSMENT YEAR 2013-14 - Tax rates for the assessment year 2013-14 are given below—

• FOR A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR BUT NOT MORE THAN 80 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, i.e., BORN DURING APRIL 1, 1933 AND MARCH 31, 1953)—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 2,50,000 Nil Nil Nil
Rs. 2,50,000 – Rs. 5,00,000 10% of (total income minus Rs. 2,50,000) 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000 Rs. 25,000 + 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000) 2% of income-tax 1% of income-tax

• FOR A RESIDENT SUPER SENIOR CITIZEN (WHO IS 80 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR, i.e., BORN BEFORE APRIL 1, 1933)—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 5,00,000 Nil Nil Nil
Rs. 5,00,000 – 10,00,000 Rs. 20% of (total income minusRs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000) 2% of income-tax 1% of income-tax

• FOR ANY OTHER INDIVIDUAL (BORN ON OR AFTER APRIL 1, 1953), EVERY HUF/AOP/BOI/ARTIFICIAL JURIDICAL PERSON—

Net income range Income-tax rates Education cess Secondary and higher education cess
Up to Rs. 2,00,000 Nil Nil Nil
Rs. 2,00,000 – 5,00,000 Rs. 10% of (total income minusRs. 2,00,000) 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000 Rs. 30,000 + 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,30,000 + 30% of (total income minus Rs. 10,00,000) 2% of income-tax 1% of income-tax

Notes :

1. Surcharge Nil

2. Education cess - It is 2 per cent of income-tax.

3. Secondary and higher education cess - It is 1 per cent of income-tax.

• Alternate minimum tax - For the assessment year 2013-14, tax payable by an individual cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

Firms - A firm is taxable at the rate of 30 per cent for the assessment years 2012-13 and 2013-14.

Surcharge Nil

Education cess - It is 2 per cent of income-tax.

Secondary and higher education cess - It is 1 per cent of income-tax.

• Alternate minimum tax in the case limited liability partnership for the assessment years 2012-13 and 2013-14 - For the assessment years 2012-13 and 2013-14, tax payable by a limited liability partnership cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

• Alternate minimum tax in the case a firm (not being limited liability partnership) for the assessment year 2013-14 - For the assessment year 2013-14, tax payable by a firm (not being limited liability partnership) cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

Companies - For the assessment years 2012-13 and 2013-14 the following rates of income-tax are applicable:

Company Rate of income-tax (per cent)
In the case of a domestic company 30
In the case of a foreign company  
royalty received from Government or an Indian concern in pursuance of an agreement made by it with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government 50
other income 40

Surcharge - Surcharge is applicable at the rates given below—

  If net income does not exceed Rs. 1 crore If income exceeds Rs. 1 crore
Domestic companyForeign company NilNil 5%*2%*

*It is 2% or 5% of income-tax. Marginal relief is available which is given below—

Marginal relief - In the case of a company having a net income of exceeding Rs. 1 crore, the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

Education cess - It is 2 per cent of income-tax and surcharge.

Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.

MINIMUM ALTERNATE TAX - The following rate of minimum alternate tax shall be applicable for the assessment years 2012-13 and 2013-14.

  A book profit does not exceed Rs. 1 crore A book profit exceeds Rs. 1 crore
  IT SC EC SHEC Total IT SC EC SHEC Total
Domestic companyForeign company 18.518.5 -- 0.370.37 0.1850.185 19.05519.055 18.518.5 0.9250.37 0.38850.3774 0.194250.1887 20.0077519.4361

Note - If book profit of a company for the assessment years 2012-13 and 2013-14 exceeds Rs. 1 crore, the minimum alternate tax cannot exceed the following : (Rs. 18.5 lakh + book profit - Rs. 1 crore) + EC + SHEC.

Co-operative societies - The following rates are applicable to a co-operative society for the assessment years 2012-13 and 2013-14—

(Per cent)

Net income range Rate of income-tax
Up to Rs. 10,000Rs. 10,000 - Rs. 20,000

Rs. 20,000 and above

1020

30

Surcharge Nil.

Education cess - It is 2 per cent of income-tax.

Secondary and higher education cess : It is 1 per cent of income-tax.

• Alternate minimum tax - For the assessment year 2013-14, tax payable by a co-operative society cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC.

Local authorities - Local authorities are taxable at the rate of 30 per cent.

Surcharge Nil.

Education cess - It is 2 per cent of income-tax.

Secondary and higher education cess : It is 1 per cent of income-tax.

• Alternate minimum tax - For the assessment year 2013-14, tax payable cannot be less than 18.5 per cent (+EC + SHEC, effective rate 19.055 per cent) of "adjusted total income" as per section 115JC

Tax rates specified in the Income-tax Act - The following incomes are taxable at the rates specified by the Income-tax Act and not at the rates :

Section Income Income-tax rates
(1) (2) (3)
111A Short-term capital gains 15
112 Long-term capital gains 20
115A(1) (a)(i) Dividend received by a foreign company or a non-resident non-corporate assessee [*it is not applicable in the case of dividends referred to in section 115-O] 20*
115A(1) (a)(ii) Interest received by a foreign company or a non-resident non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency 20
115A(1) (a)(iia) Interest received from an infrastructure debt fund referred to in section 10(47) 5
115A(1) (a)(iiaa) Interest received from an Indian company specified in section 194LC (applicable from July 1, 2012, i.e., assessment year 2013-14) 5
115A (1)(b) Royalty or fees for technical services received by a foreign company or non-resident non-corporate assessee from an Indian concern or Government in pursuance of an agreement approved by the Central Government and made after—a. March 31, 1976 but before June 1, 1997

b. May 31, 1997 but before June 1, 2005

c. May 31, 2005

 

30

20

10

115AB Income of an overseas financial organisation on transfer of units purchased in foreign currency being long-term capital gains 10
115AC Income from bonds or Global Depository Receipts1 or on bonds or Global Depository Receipts1 of a public sector company sold by the Government and purchased in foreign currency or long-term capital gains arising from their transfer *[not applicable in the case of dividends referred to in section 115-O] 10*
115ACA Income from Global Depository Receipts held by a resident individual who is an employee of an Indian company engaged in information technology software/services††❒  Dividend [other than dividend referred to in section 115-O] on Global Depository Receipts issued under employees stock option scheme and purchased in foreign currency

❒  Long-term capital gain on transfer of such receipts

 

10

 

10

115AD Income in respect of securities received by a Foreign Institutional Investor as specified1 by the Government❒  Short-term capital gain covered by section 111A

❒  Any other short-term capital gain

❒  Long-term capital gain

❒  Other income [*not applicable in the case of dividends referred to in section 115-O]

 

15

30

10

20*

115B Profits and gains of life insurance business 12.5
115BB Winnings from lotteries, crossword puzzles, or race including horse race (not being income from the activity of owning and maintaining race horse) or card game and other game of any sort or from gambling or betting of any form or nature 30
115BBA(1) (a)/(b) Income of a non-resident foreign citizen sportsman for participation  in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sport association by way of guarantee money-   For the assessment year 2012-13

-   For the assessment year 2013-14

 

 

10

20

115BBA (1)(c) Income of non-resident foreign citizen (being an entertainer) for performance in India (applicable from the assessment year 2013-14) 20
115BBC Anonymous donation 30
115BBD Income of an Indian company by way of dividends declared, distributed or paid by a specified foreign company (in which the Indian company holds 26 per cent or more of equity shares capital) 15
115BBE Income referred to in sections 68, 69, 69A, 69B, 69C and 69D (applicable from the assessment year 2013-14) 30
115E Income from foreign exchange assets and capital gains of non-resident Indian a.  income from foreign exchange asset [*not applicable in the case of dividends referred to in section 115-O]

 b.  long-term capital gain

20*

10

115JB Tax on book profits of certain companies 18.5%
115JC   -   Alternate minimum tax in the case of a limited liability partnership (applicable for the assessment year 2012-13)-   Alternate minimum tax in the case of any taxpayer (including limited liability partnership but other than a company) (applicable from the assessment year 2013-14) 18.518.5
161(1A) Profits and gains of a business in the case of a trust 30
164 Income of private discretionary trust where shares of beneficiaries are indeterminate 30
164A  Income of an oral trust 30
167A  Income of a firm 30
167B Income of an association of persons or body of individuals if shares of members are unknown 30
167B(2) Income of an association of persons or body of individuals if total income of any member (excluding share from the association or body) exceeds the maximum amount not chargeable to tax [*if total income of any member of the association or body is chargeable to tax at a rate higher than 30.9 per cent, then tax shall be charged on that portion of the total income of the association/body which is relatable to the share of such member at such higher rate and the balance of the total income is taxable at a rate of 30.9 per cent] 30*

Notes :

1. Surcharge - The above income-tax rates are subject to surcharge as follows—

  Assessment years
2012-13 and 2013-14
Individuals/HUF/AOP/BOI Nil
Artificial juridical person Nil
Co-operative society, local authority Nil
Firm Nil
Domestic company if net income does not exceed Rs. 1 crore Nil
Domestic company if net income exceeds Rs. 1 crore 5%
Foreign company if net income does not exceed Rs. 1 crore Nil
Foreign company if net income exceeds Rs. 1 crore 2%

In the case of section 115JB, surcharge is applicable only if book profit exceeds Rs. 1 crore.

2. Education cess - 2 per cent of sum total of income-tax and surcharge

3. Secondary and higher education cess : 1 per cent of income-tax and surcharge.

 

 
 
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Comments

margaretB's picture

Thanks for the post. Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.

 

Taxable income of taxpayers resident in the jurisdiction is generally total income less income producing expenses and other deductions. Generally, only net gain from sale of property, including goods held for sale, is included in income. Income of a corporation's shareholders usually includes distributions of profits from the corporation.