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Understanding Taxes

Income Tax Rates FY 2012-13 (AY 2013-14) Ready Reckoner

Tax slabs for FY 2008-09

Tax slabs for FY 2009-10

Tax slabs for FY 2010-11

Tax slabs for FY 2011-12

Tax slabs for FY 2013-14


We present to you a snapshot of Income Tax Rates for FY 2012-13 along with Capital Gains tax on Mutual Fund redemptions, Dividends treatment and DDT (Dividend Distribution Tax) for Resident individuals and NRIs.


I.
Income Tax Slab Rates for Individuals:


Male/Female less than 60 years’ age

INCOME

TAX RATE

Upto Rs 2 Lakhs

NIL

> INR 2 Lakhs-INR 5 Lakhs

10%

> INR 5 Lakhs-INR 10 Lakhs

20%

>INR 10 Lakhs

30%

 


Senior Citizen (60 years and above)

INCOME

TAX RATE

Upto Rs 2.5 Lakhs

NIL

> INR 2.5 Lakhs-INR 5 Lakhs

10%

> INR 5 Lakhs-INR 10 Lakhs

20%

>INR 10 Lakhs

30%

 


Very Senior Citizen (80 years and above)

INCOME

TAX RATE

Upto Rs 5 Lakhs

NIL

> INR 5 Lakhs-INR 10 Lakhs

20%

>INR 10 Lakhs

30%

 


II. Dividends Received from Mutual Fund investments:

Equity-Oriented Schemes

Tax Free

Debt-Oriented Schemes

Tax Free

 

Know more about Tax Saving Investments


III. DDT or Dividend Distribution tax:


DDT or Dividend Distribution Tax is applicable on debt-oriented mutual fund schemes. The tax is payable directly by the company distributing the dividends and the investor receives the dividend net of such tax payment. Such dividends received are fully tax exempt for investors.

Money Market or Liquid Schemes

25%+ 5% Surcharge+ 3% Cess

Effective DDT Rate

=27.0375%

Non-Liquid Schemes

12.5%+ 5% Surcharge+ 3% Cess

Effective DDT Rate

=13.519%


IV. Short-Term Capital Gains Tax:


For mutual fund units held for less than 1 year, short-term capital gains tax is applicable as below.

 

Equity-Oriented Schemes

15% + 3% Cess =15.450%

Debt-Oriented Schemes

As per individual tax slab rate + 3% Cess

 


V. Long-Term Capital Gains Tax:


For mutual fund units held for more than 1 year, long-term capital gains tax is applicable as below.

 

Equity Schemes

Nil

Non- Equity Schemes (listed)

[10% without indexation or 20% with indexation, whichever is lower] + 3% Cess

[A] Without Indexation

=10.30%

[B] With Indexation

=20.60%

 

 

Priya Rao is our in-house Financial Planner and a personal finance enthusiast. She is a Certified Financial Planner(CFP) and can be reached at expert@investmentyogi.com

Published Oct 30 2012

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