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Unit 10: Tax Planning for Different Organisations

depreciation or as the basis of property in determining capital gains/losses. But no Notes
deduction shall be allowed in respect of any expenditure incurred in relation to income
which does not form part of total income.
(iv) Tax liability is computed on the ‘net income’ that is chargeable to tax. It is done either on
accrual basis or on receipt basis (whichever is earlier). However if an income is taxed on
accrual basis, it shall not be taxed on receipt basis.
(v) From the tax so computed, tax rebates or tax credit are deducted
Tax Rates for Individuals, HUF’s, AOPs, BOIs for the A.Y.2012–13 is shown in Table 10.1:

Income Tax Slabs and Rates for AY 2014–15 (FY 2013–14) are as follows:
(a) For Individual or HUF or AOP or BOI or Artificial Judicial Person:

Table 10.1: Tax Slabs for Individual, HUF and Artificial Judicial Person

Income Slabs Income Tax Rate
i. Where the total income does not exceed NIL
` 2,00,000/-.
ii. Where the total income exceeds ` 2,00,000/- 10% of amount by which the total income
but does not exceed ` 5,00,000/-. exceeds ` 2,00,000/-.
Less: Tax Credit - 10% of taxable income
upto a maximum of ` 2,000/-.
iii. Where the total income exceeds ` 5,00,000/- ` 30,000/- + 20% of the amount by which
but does not exceed ` 10,00,000/-. the total income exceeds ` 5,00,000/-.
iv. Where the total income exceeds ` 130,000/- + 30% of the amount by which
` 10,00,000/-. the total income exceeds ` 10,00,000/-.
Source: http://finotax.com/itax/itaxrates13.htm
Surcharge: 10% of the Income Tax, where total taxable income is more than ` 1 crore.

Education Cess: 3% of the total of Income Tax and Surcharge.
(b) For Individual resident who is of the age of 60 years or more but below the age of 80 years at any time
during the previous year

Table 10.2: Tax Slabs for Individual Resident (Age 60 Years or More but below 80 Years)

Income Slabs Income Tax Rate
i. Where the total income does not exceed NIL
` 2,50,000/-.
ii. Where the total income exceeds ` 2,50,000/- 10% of the amount by which the total income
but does not exceed ` 5,00,000/- exceeds ` 2,50,000/-.
iii. Where the total income exceeds ` 5,00,000/- ` 25,000/- + 20% of the amount by which the
but does not exceed ` 10,00,000/- total income exceeds ` 5,00,000/-.
iv. Where the total income exceeds ` 1,25,000/- + 30% of the amount by which
` 10,00,000/- the total income exceeds ` 10,00,000/-.
Surcharge: 10% of the Income Tax, where total taxable income is more than ` 1 crore.

Education Cess: 3% of the total of Income Tax and Surcharge.

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