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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

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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
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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/-. &nb sp; ;	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/-. &nb sp; ; & nbsp;	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/-. &nb sp; ;	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/-. &nb sp; ; & nbsp;	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 2,50,000	No tax
2,50,001 to 5,00,000	10%
5,00,001 to 8,00,000	20%
Above 8,00,000	30%

Income tax slabs 2011-2012 for Very Senior citizen (Above 80 years)

Income tax slab (in Rs.)	TAX
0 to 5,00,000	0%
5,00,001 to 8,00,000	20%
Above 8,00,000	30%

PAN INFORMATION