Page 189 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes Tax Rates for Individuals, HUF’s, AOPs, BOIs for the A.Y.2012-13 is shown in Table 8.1:

Table 8.1: Tax Rates for Individuals, HUF’s, AOPs, BOIs for the A.Y.2012-13
For Resident Women (Age limit = below 60 years)
Up to ` 1,90,000 NIL
` 1,90,001 to ` 5,00,000 10 per cent
` 5,00,001 to ` 8,00,000 20 per cent
` 8,00,000 and above 30 per cent

For Resident Senior Citizens (Age limit = 60 years or more at any time during the year but not more
than 80 years on the last day of the year)
Up to ` 2,50,000 NIL
` 2,50,001 to ` 5,00,000 10 per cent
` 5,00,001 to ` 8,00,000 20 per cent
` 8,00,000 and above 30 per cent

For Resident Super Senior Citizens (Age Limit = 80 years or more at any time during the year)
Up to ` 5,00,000 NIL
` 5,00,001 to ` 8,00,000 20 per cent
` 8,00,000 and above 30 per cent

For any other individual, every HUF /AOP / BOI artificial juridical person

Up to ` 1,80,000 NIL
` 1,80,001 to ` 5,00,000 10 per cent
` 5,00,001 to ` 8,00,000 20 per cent
` 8,00,001 and above 30 per cent

Source: http://tax-india.blogspot.in/2011/06/income-tax-rates-for-ay2012-13.html
8.2.2 Advantages of Sole Proprietorship

Perhaps the greatest advantage of this form of business is its simplicity and low cost. You are not
required to file with the government, nor are any legal charter required. The sole proprietorship

form of business has other advantages:
1. The owner or proprietor is in complete control of business decisions.
2. The income generated through operations can be directed into the proprietor’s pocket or
reinvested as he or she sees fi t.

3. Profi ts flow directly to the proprietor’s personal tax return; they are not subject to a second

level of taxation. In others words, profits from the business will not be taxed at the business
level.
4. The business can be dissolved as easily and informally as it was begun.
These advantages account for the widespread adoption of the sole proprietorship in the India.
Any person who wants to set up shop and begin dealing with customers can get right to it, in
most cases without the intervention of government bureaucrats or lawyers.

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