Detailed Income tax Rates for financial year 2011-12 -(AY 2012-13)

The Income Tax Rates applicable for the financial year 2011-12 (Assessment year 2012-13) have been revised. The following is the New Income Tax structure for the year 2011-12.

In case of individual (other than II and III below) and HUF

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,80,000/-.	NIL
ii.	Where the total income exceeds Rs.1,80,000/- but does not exceed Rs.5,00,000/-.	10% of amount by which the total income exceeds Rs. 1,80,000/-
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 32,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-.	Rs. 92,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,90,000/-.	NIL
ii.	Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.	10% of the amount by which the total income exceeds Rs.1,90,000/-.
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 31,000- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.91,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.2,50,000/-.	NIL
ii.	Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-	10% of the amount by which the total income exceeds Rs.2,50,000/-.
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	Rs.25,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.85,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.2,50,000/-.	NIL
ii.	Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/-	Nil
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	20% of the amount by which the total income exceeds Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.60,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-.

Education Cess: 3% of the Income-tax.

• SALARY INCOME INCLUDES :- PAY, DP, Band pay, Grade pay, DA, OTA, BONUS, CCA, Honorarium, Children Education Allowance Received, Pension, Subsistence Allowance, Government's Contribution in New Pension Scheme, Transport Allowance above Rs.800/- per month.
• House Rent Allowance to the extent not exempted under Section 10 (13A) of Income Tax Act.
• Agricultural Income. Click here for more details

Exemption under Section 10 (13A) in respect of HRA – Calculation Method:

Least of the following amount is to be treated as exempt from Income Tax.

• Actual House Rent Allowance Received, or
• Rent paid in excess of 10% of Pay in Pay band and Grade Pay or
• 50% of Pay in Pay band and Grade Pay  if the employee is in Chennai/Mumbai/Kolkatta/Delhi and 40% of Pay in Pay Band and Grade Pay for the employees is in other places.
• If the employees resides in his/her own house or in a house for which he/she does not pay any rent, no HRA exemption is available.

For detailed Calculation of Exemption on HRA use this HRA Calculator provided by GConnect

TAX-INCENTIVE FOR SAVINGS – MAXIMUM LIMIT Rs. 1,00,000/-(Sec 80 CCE)

• Life Insurance Premium (limited 20% of the sum assured)
• Subscriptions to the GPF/CPF
• Subscriptions to the Mutual Fund
• Contribution toward CGEGIS
• Investments in NSC VIII & Accrued Interest on NSC deemed to be re-invested;
• Fixed Deposits for more than 5 years in SBI/Scheduled Banks/Post Office Five Year Time Deposit Scheme
• Repayment of HBA principal -Government /Bank/LIC/Housing Board/Co-operative Bank
• Tuition Fee paid limited to two children
• Subscriptions to equity shares/debentures forming part of any” eligible issue of Capital”—like Infrastructure Bonds   (Sec 80 C)
• Contribution to any PENSION FUND, ULIP
• Contribution both by the individual and Government made to New Pension scheme (Sec 80 CCD)

Apart from  this 1 lakh,  amount up to Rs.20,000/- invested in Infrastructure Bond approved by Government is exempted. (Sec 80 CCF)

CHAPTER VI DEDUCTIONS

• Medical Insurance Premium: Maximum Rs.15,000/- and Rs.20,000 (for Senior Citizen) (Sec 80 D). Also Meducal Insurance Premium up to Rs.15,000 paid for Parents is also allowed to be deducted from the income. Click here for more details
• Handicapped Dependents- Maximum Rs.50,000/- (Disability) or Rs.75000/- ( Severe Disability) -Sec 80 DD- This claim required certficate under Section 139 of the Income Tax Act. Click here for more details
• Medical Treatment Expenses: Maximum Rs.40,000/- (Sec 80 DDB) Click here for more details
• Higher Education Loan repayment (Sec 80 E)- No limit- Click here for more details
• Approved Donation – Section 80G. Click here for more details
• Deduction under Section 80 U – An amount of Rs.50,000 and Rs.1 lakh in the case of self is physically disabled and severely physically disabled respectively. Click here for more details
• Deduction under Section 80 GG – Rent paid subject to ceiling as deduction under Section 80 GG if HRA not received. Click here for more details
• Deduction under Section 80 GGC – Donation paid to Political Parties. Click here for more details
• Deduction under Section 80 GGA – Donation paid to Scientific and Research and Rural development. Click here for more details

Income or Loss on House Property:

Interest paid on Loan obtained for constructing house property can not be deducted as such. It should be treated as loss on house property and income if any such as rent recived from the house property should be treated as an income from House property.

Check this previous GConnect article and Calculator for exact details on Income or Loss on House Property.

There is also a change with respect to the tax benefit available for contribution to the New Pension Scheme (NPS). Currently contributions to the NPS by both the employer as well as the employee can be counted for the tax benefit of a deduction. However, both of these contributions will attract the provisions under Section 80CCE which restricts the total deductions to Rs. 1 lakh. 

The welcome change now proposed in the budget is contribution by employer for any pension fund including NPS can be deducted by the employee fully from the income under section 80CCD without restriction.  In other words, this contribution will not be covered by the restriction of  Rs. 1 lakh imposed under Section 80CCE as far as deductions are concerned.

Click here to go to GConnect Income tax online tool 2010-11 – Assessment year 2011-12