taxation - cfp

8/6/2019 Taxation - CFP

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Individuals, HUF,AOP,BOI S.No

Income Rate of Tax 1

Upto 160,000 0% 2

>160,000 and < =500,0 10% 3

>500,000 and < =800,0 20% 4

>800,000 30% 5

ior Citizen ( Resident and >=65

Income Rate of Tax

Upto 240,000 0%

>240,000 and < =500,0 10%

>500,000 and < =800,0 20%

>800,000 30%

Females( 190,000 and < =500,0 10%

>500,000 and < =800,0 20%

>800,000 30%

Incomes which do not become part of total income or

Some Examples

10(1) Agriculture Income

10(2) Receipts as member of HUF

10(2A) Share of Profit from Partnership fir

10(7) Allowance paid by GOI for internati

10(10 D) sum , including bonuses received o

10(16) educational scholarships

Interest from PPF and recognised EPF schemes

Heads of Income

1. Salary

2. Income from house

3. Profits from business / profession

4. Capital Gains

5. Income from other sources

Income of Previous Year, paid in the same year for th

1. Income of non-residents from shipping

2. persons leaving india either permanently or for a long tim

3. Income of bodies formed for short duration

4. income of a person trying to liquidate assets with a view t

5. Income of a discountinued business


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Particulars Firms mestic Compani oreign Companie

Basic Tax Rate 30.00% 30.00% 40.00%

Surcharge 0.00% 7.50% 2.50%

Education Cess 2.00% 2.00% 2.00%

Sec & Higher Sec education cess 1.00% 1.00% 1.00%

Effective Tax Rate 30.90% 33.22% 42.23%

Co-operative Societies

Income ate of Ta Surcharge Education Cess

Upto 10000 10% NA 3%

>10000 upto 20000 20% NA 3%

>20000 30% NA 3%

What is Financial Year ? both 10-11 & 11-12

What is Previous Year ? 2010-11

What is Assessment Year ? 2011-12

exempt from tax

A is a member of HUF with an income of 10 lacs , he receives 2 lacs as est

Why ? Tax already paid by firm

onal trips undertaken for rendering some service as adviced by GOI

n life insurance policies - Exceptions are the eg :Keyman insurance

e following cases

e

o avoid payment of tax


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s

ate and 1 lac as a share of income - He still pays IT for 10 lacs


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Shriya - Age 27

Income Rate of Tax Value

Upto 190,000 0% 0

>190,000 and < =500,000 10% 31000

>500,000 and < =800,000 20% 60000

>800,000 30% 127500

Total Before Education Cess 218500

Cess 3.00% 6555

Total After Education Cess 225060

Devika - Age 65


Upto 240,000 0% 0

>240,000 and < =500,000 10% 26000

>500,000 and < =800,000 20% 60000

>800,000 30% 60900


Cess 3.00% 4407


SuperStar - 61


Upto 160,000 0% 0

>160,000 and < =500,000 10% 5000

>500,000 and < =800,000 20% 0

>800,000 30% 0


Cess 3.00% 150


Sujatha - 60


Upto 190,000 0% 0

>190,000 and < =500,000 10% 16000

>500,000 and < =800,000 20% 0

>800,000 30% 0


blem 1 :Shriya , aged 27 , has a total income of Rs.12,25,000 for FY 2010-11 . Compute h

blem 2 :Devika , aged 65 , has a total income of Rs.10,03,000 for FY 2010-11 . Compute

lem 3 :Rajinikanth , aged 61 , has a total income of Rs.2,10,000 for FY 2010-11 . Compute

blem 4 :Sujatha , aged 60 , has a total income of Rs.3,50,000 for FY 2010-11 . Compute h


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Cess 3.00% 480


Suganya - 42


Upto 190,000 0% 0

>190,000 and < =500,000 10% 31000

>500,000 and < =800,000 20% 27088

>800,000 30% 0


Cess 3.00% 1742.64


blem 5 :Suganya , aged 42 , has a total income of Rs.6,35,440 for FY 2010-11 . Compute


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er income for AY 11

er income for AY 11

her income for AY 1

er income for AY 11


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er income for AY 11


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Residential Status for

Resident

Ordinarily Resident

Residential Status for Firms,

Resident

1. Residential Status may vary from year to year

2. A resident in India can simultaneously be a resident abroad as well

R

Basic Conditions :

THE BASIC CONDITION 2 is NOT APPLIED WHEN

1. Indian citizen leaves india during the previous year for the purpose of employment

3. PIO comes to India ona visit during the previous year

Additional Conditions:

1. Resident in India in atleast 2 out of 10 years preceeding the previous year

2. Presence in India for atlast 730 days during the last 7 years immediately preceeding

Residence Criteria Basic Additional

Resident and Ordinarily Resident atleast 1 both

Resident and not Ordinarily Resident atleast 1 1 or noneNon Resident none none

Residential Status of HUF

A HUF is resident in India if Control & Mgmt of its affairs is wholly or partly sit

A HUF is non resident in India if C & M of its affairs is wholly situated outside I

Residence Criteria C & M Additional

Resident and Ordinarily Resident YES both

1. An individual has to be in India in the previous year for a

2. He/She is in India for a period or periods amounting to atleast365 day

the previous year AND is in India for a period or periods am

2. Indian citizen leaves india as a member of crew in an Indian Ship


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Resident and not Ordinarily Resident YES 1 or none

Non Resident none none

Residential Status of a Firm / AOP

Resident in India if C&M of its affairs are wholly or partly situated within India

non resident in India if C & M of its affairs is wholly situated outside India

Residential Status of CompanyAn Indian company is always resident in India

A foreign company is resident only if C& M of its affairs was wholly situated in

A foreign company is non resident if C& M of its affairs was wholly or partly s

Indian Income

Received within Indi Accrued within India

Yes Yes

Yes No

No Yes

Foreign Income

Received within Indi Accrued within India

No No

Incidence of Tax for different tax payers

Particulars R & OR Resident but NOR

Income Resident in India Taxable Taxable

Taxable Taxable

Taxable Taxable

Taxable Taxable

Taxable Taxable

Taxable Not Taxable

Income deemed to bereceived in India

Income accrued or ariseinIndia

Income deemed to beaccrued or arise inIndia

Income arising outsideIndia froma a business orprofession situatedoutside India but control

or management of it is inIndia (Wholly or partially)

Income arising outsideIndia froma a business orprofession situatedoutside India and thecontrol or management ofit is situated outside India


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Basic Condition 1-Apr-10 5-Sep-10

1 is not satisfied 158.00

2 is satisfied lives more than 365 days in the 4 yrs immediately

Additional Condition

Ordinary Residentboth are satisfied

Basic Condition 17-Jul-10 13-Jan-111 is not satisfied 181.00

2 is not satisfied 347

Additional Condition

Non ResidentNOT REQUIRED TO CHECK Since he is a PIO . Should

Surya is an Indian citizen who left India for the first time on 5th Sep 2010 forhim in India . He returned on 5th April 2011 . What is his reside

, .1929. On 17th July 2010, he came to India to attend a marriage. He left India

India during the last few years was 9 -10 ( 102 days ) 8-9 ( 75 days ) 7-8 (residential status for AY 11- 12


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Individuals and HUF

Non- resident

Not Ordinarily Resident

AOP , Joint Stock company

Non- resident

sidential Status of Individuals

the previous year

uated in India .

ndia

period or periods amounting to atleast 182 days

s during the 4 years immediately preceeding the previous year

ounting to atleast 60 days in the previous year


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during the previous year

India during the previous year

ituated outside India during the previous year

Non-Resident

Taxable

Taxable

Taxable

Taxable

Not Taxable

Not Taxable


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Residentpreceeding the previous ye

not check condition 2

exports of the goods manufactured byntial status for AY 11- 12

for USA on 13th Jan 2011 .His stay in130 days ) 6-7 (40 days ) What is his

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