Dear All,
The information below has been acquired from an alternative source on the website. Credit goes to the original author.
It is vital to know the important changes in tax matters after Budget 2011 for the accurate work of an accountant. We are highlighting the most important points here.
Changes in Income Tax after Budget 2011
Personal Income Tax
1. There is no change in the personal income tax rate.
2. The exemption limit of income tax increased from 160,000 to 180,000.
3. Senior Citizen age limit decreased from 65 to 60; hence, more people benefit under this category.
4. Senior citizen basic exemption limit increased from 240,000 to 250,000.
5. A new category has been added for very old people aging 80 and above, with no tax required till the income reaches 500,000.
Corporate Income Tax
1. There is no change in the tax rate of corporate assessees.
2. Surcharge for a domestic company with income exceeding Rs 1 crore is reduced from 7.5% to 5%.
3. Surcharge for foreign companies reduced from 2.5% to 2%.
TDS Rate for Financial Year 2011-12
1. There is no change in the TDS rate and threshold limit.
2. A new section 194LB has been inserted for deduction from interest paid to a non-resident by a notified infrastructure debt fund.
Minimum Alternate Tax
1. MAT increased to 18.5% from 18%.
Important Changes in Service Tax after Budget 2011
Service Tax
1. Service tax rate remains the same as the last financial year at 10%.
2. Service tax return late filing penalty increased from 2,000 to 20,000.
3. Penalty for late payment of service tax reduced to 1% from 2% or Rs 100 (reduced from 200) per day, whichever is higher. The maximum penalty payable is reduced to 50% of the total service tax payable (reduced from 100%).
4. Interest for late payment of service tax increased to 18% from 13% effective from 1-4-2011.
5. The point of taxation will be effective from 1st April 2011. Previously, service tax was payable based on the receipt of payment or consideration.
6. Penalty under section 77 increased to 10,000.
7. Point of taxation rules effective from 01.04.2011, i.e., service tax is payable when the service is provided or to be provided, at the time of invoice generation, and at the time of receiving payment, including advance payment.
Central Excise & Custom Duty
1. Central excise duty remains at 10%.
2. Basic custom duty unified to 2.5%.
Hope you will point out the important points missed out here.
From India, Mumbai
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580The information below has been acquired from an alternative source on the website. Credit goes to the original author.
It is vital to know the important changes in tax matters after Budget 2011 for the accurate work of an accountant. We are highlighting the most important points here.
Changes in Income Tax after Budget 2011
Personal Income Tax
1. There is no change in the personal income tax rate.
2. The exemption limit of income tax increased from 160,000 to 180,000.
3. Senior Citizen age limit decreased from 65 to 60; hence, more people benefit under this category.
4. Senior citizen basic exemption limit increased from 240,000 to 250,000.
5. A new category has been added for very old people aging 80 and above, with no tax required till the income reaches 500,000.
Corporate Income Tax
1. There is no change in the tax rate of corporate assessees.
2. Surcharge for a domestic company with income exceeding Rs 1 crore is reduced from 7.5% to 5%.
3. Surcharge for foreign companies reduced from 2.5% to 2%.
TDS Rate for Financial Year 2011-12
1. There is no change in the TDS rate and threshold limit.
2. A new section 194LB has been inserted for deduction from interest paid to a non-resident by a notified infrastructure debt fund.
Minimum Alternate Tax
1. MAT increased to 18.5% from 18%.
Important Changes in Service Tax after Budget 2011
Service Tax
1. Service tax rate remains the same as the last financial year at 10%.
2. Service tax return late filing penalty increased from 2,000 to 20,000.
3. Penalty for late payment of service tax reduced to 1% from 2% or Rs 100 (reduced from 200) per day, whichever is higher. The maximum penalty payable is reduced to 50% of the total service tax payable (reduced from 100%).
4. Interest for late payment of service tax increased to 18% from 13% effective from 1-4-2011.
5. The point of taxation will be effective from 1st April 2011. Previously, service tax was payable based on the receipt of payment or consideration.
6. Penalty under section 77 increased to 10,000.
7. Point of taxation rules effective from 01.04.2011, i.e., service tax is payable when the service is provided or to be provided, at the time of invoice generation, and at the time of receiving payment, including advance payment.
Central Excise & Custom Duty
1. Central excise duty remains at 10%.
2. Basic custom duty unified to 2.5%.
Hope you will point out the important points missed out here.
From India, Mumbai
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Income Tax Return preparation of Employees For FY 2010-2011.xls