CIRCULAR  NO :  05 /2011
F.No. 275/192/2011-IT(B)
Government of India  
Ministry of Finance  
Department of Revenue  
Central Board of Direct Taxes
                                         SUBJECT:  
INCOME-TAX  DEDUCTION  FROM  SALARIES  DURING  THE  FINANCIA L  YEAR  2011-2012-UNDER  SECTION  192  OF  THE  INCOME-TAX ACT, 1961.                           
     
     Reference   is  invited   to    Circular   No.08/2010   dated   13.12.2010  whereby 
the rates of deduction  of  income-tax  from  the payment of income under the head
"Salaries" under  Section  192  of  the  Income-tax  Act,  1961(hereinafter  the Act ), 
during    the    financial    year    2010-2011, were  intimated.  The    present    Circular
contains  the  rates  of  deduction  of  income-tax  from    the    payment  of  income
chargeable under  the head "Salaries"   during   the   financial  year 2011-2012 and
explains  certain  related provisions of the Income-tax Act. The relevant Acts, Rules,
Forms and Notifications are available at the website of the Income Tax Department-
 2. FINANCE  ACT, 2011                      As  per    the  Finance  Act,  2011,  income-tax  is  required  to  be  deducted  under Section 192 of the Income-tax Act 1961   from income chargeable under  the head  "Salaries" for the  financial  year 2011-2012 (i.e.   Assessment  Year 2012-2013) at the following rates:
          Normal Rates of Tax for 2011-12: 
1. Where the total income does not exceed Rs. 1,80,000/-. Nill
2. Where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 5,00,000/-.                                     10 per cent of the  amount by which the  total income exceeds Rs. 1,80,000/- 
 3. Where the total income exceeds  Rs. 5,00,000/- but does not exceed   Rs. 8,00,000/-.                                                Rs. 32,000/- plus 20   per cent of the amount  by which the total  income exceed Rs. 5,00,000/-.
 4.Where the total income exceeds  Rs. 8,00,000/-.   Rs. 92,000/- plus 30  per cent of the  amount by which the  total income exceeds Rs.8,00,000
           Rates of Tax for women:
1. Where the total income does not exceed Rs. 1,90,000/-. Nill
2. Where the total income exceeds Rs. 1,90,000 but does not exceed Rs. 5,00,000/-.                                     10 per cent of the  amount by which the  total income exceeds Rs. 1,80,000/- 
 3. Where the total income exceeds  Rs. 5,00,000/- but does not exceed   Rs. 8,00,000/-.                                                Rs. 31,000/- plus 20   per cent of the amount  by which the total  income exceed Rs. 5,00,000/-.
 4.Where the total income exceeds  Rs. 8,00,000/-.   Rs. 91,000/- plus 30  per cent of the  amount by which the  total income exceeds Rs.8,00,000
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   USEFUL SOFTWARES IN INCOME TAX:         USEFUL INFORMATION LINKS:
              INCOME TAX FORMS:
     More Info for Others:
    Income tax slabs 2011-2012 for Senior citizen (Aged 60 years but less than 80 years)
    Income tax slab (in Rs.)                 Tax  
    0 to 2,50,000No tax
    2,50,001 to 5,00,00010%
    5,00,001 to 8,00,00020%
    Above 8,00,00030%
    Income tax slabs 2011-2012 for Very Senior citizen (Above 80 years)
    Income tax slab (in Rs.)                 TAX 
    0 to 5,00,0000%
    5,00,001 to 8,00,00020%
    Above 8,00,00030%
      PAN INFORMATION

      SOFTWARE FOR CALCULATING INCOME TAX IN ADVANCE  FOR THE COMING YEAR 2011-12-CLICKHERE

      Form No-10-IA Section 80DD-80U

      Information to DDO- TDS on salaries

      Form No.10-I Section 80DDB

       


      Preperation and Calculation of Your Income Tax for the Assessment Year 2010-11


      Income Tax slabs have been increased slightly (by Rs. 10,000 for men & women and Rs. 15,000 for Senior Citizen) for the Assessment Year 2009-10. The updated income tax slabs are:
      Income Tax Slabs 2010/2011for Men
      Income: upto 1.6 lacs NO TAX
      Income : 1.6 lacs to 3 lacs 10 %
      Income : 3 lacs to 5 lacs 20 %
      Income : above 5 lacs 30 %

      Income Tax Slabs 2010/2011 or Women

      Income : upto 1.9 lacs NO TAX
      Income : 1.9 lacs to 3 lacs 10 %
      Income : 3 lacs to 5 lacs 20 %
      Income : above 5 lacs 30 %

      Income Tax slabs 2009/2010 for Senior Citizen
      Income : upto 2.4 lacs NO TAX
      Income : 2.4 lacs to 3 lacs 10 %
      Income : 3 lacs to 5 lacs 20 %
      Income : above 5 lacs 30 %
      In addition to the income tax calculated according to the above income tax slabs, a 3% of Education cess will be charged on the total Income tax paid (not on the total taxable income). If the taxable income exceeds Rs. 10 lacs, a 10% surcharge on the total income tax (not on the total taxable income) is also charged.

       

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