Tax Rates FY - 2012-13, AY - 2013-14

·         A. Normal Rates of tax:

Net income range	Income tax rates	Education cess	Secondary and higher education cess
Up to Rs. 2,00,000	Nil	Nil	Nil
Rs. 2,00,000 – 5,00,000	10% of (total income – 2,00,000)	2% of income tax	1% of income tax
Rs. 5,00,000 – 10,00,000	30000 + 20% of (total income – 5,00,000)	2% of income tax	1% of income tax
Above Rs. 10,00,000	130000 + 30% of (total income – 10,00,000)	2% of income tax	1% of income tax

·         B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

Net income range	Income tax rates	Education cess	Secondary and higher education cess
Up to Rs. 2,50,000	Nil	Nil	Nil
Rs. 2,50,000 – 5,00,000	10% of (total income – 2,50,000)	2% of income tax	1% of income tax
Rs. 5,00,000 – 10,00,000	25,000 + 20% of (total income – 5,00,000)	2% of income tax	1% of income tax
Above Rs. 10,00,000	1,25,000 + 30% of (total income – 10,00,000)	2% of income tax	1% of income tax

·         C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

Net income range	Income tax rates	Education cess	Secondary and higher education cess
Up to Rs. 5,00,000	Nil	Nil	Nil
Rs. 5,00,000 – 10,00,000	20% of (total income – 5,00,000)	2% of income tax	1% of income tax
Above Rs. 10,00,000	1,00,000 + 30% of (total income – 10,00,000)	2% of income tax	1% of income tax

·         For any other individual ( every HUF/AOP/BOI/artificial juridical person):

Net income range	Income tax rates	Education cess	Secondary and higher education cess
Up to Rs. 2,00,000	Nil	Nil	Nil
Rs. 2,00,000 – 5,00,000	10% of (total income – 2,00,000)	2% of income tax	1% of income tax
Rs. 5,00,000 – 10,00,000	30,000 + 20% of (total income – 5,00,000)	2% of income tax	1% of income tax
Above Rs. 10,00,000	1,30,000 + 30% of (total income – 10,00,000)	2% of income tax	1% of income tax

Income Tax Rates for Partnership Firm including LLP: 

Income Tax Rate: 30% - Education Cess: 3% 

Income Tax Rates for Domestic Companies:

Income Tax Rate: 30% , Surcharge: 5% (surcharge from 5 to 10 percent on domestic companies whose taxable income exceed Rs.10 Crore), Education Cess: 3%)

Dividend Distribution Tax

DIVIDEND DISTRIBUTION TAX

(Also refer bare IT Act for accuracy and updated information)

TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES [Definition - Section 2(22A) of the Income Tax Act 1961 -“Domestic Company” means an Indian Company, or any other Company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income.]

115-O. ¹[(1) Notwithstanding anything contained in any other provision of this Act and subject to the provisions of this section, in addition to the income-tax chargeable in respect of the total income of a domestic company for any assessment year, any amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2003, whether out of current or accumulated profits shall be charged to additional income-tax (hereafter referred to as tax on distributed profits) at the rate of ²[fifteen] per cent.]

 {Base Rate 15% + Surcharge  5% + Education Cess 2% + SHEC 1% = Total 16.2225%}

³[(1A) The amount referred to in sub-section (1) shall be reduced by,—

(i)  the amount of dividend, if any, received by the domestic company during the financial year, if—

(a)  such dividend is received from its subsidiary; ^3a[and]

(b)  the subsidiary has ^3b[paid the tax which is payable under this section on such dividend:]

(c)  ^3c[***]

Provided that the same amount of dividend shall not be taken into account for reduction more than once;

(ii)  the amount of dividend, if any, paid to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10.

Explanation.—For the purposes of this sub-section, a company shall be a subsidiary of another company, if such other company, holds more than half in nominal value of the equity share capital of the company.]

(2) Notwithstanding that no income-tax is payable by a domestic company on its total income computed in accordance with the provisions of this Act, the tax on distributed profits under sub-section (1) shall be payable by such company.

(3) The principal officer of the domestic company and the company shall be liable to pay the tax on distributed profits to the credit of the Central Government within fourteen days from the date of—

(a)  declaration of any dividend; or

(b)  distribution of any dividend; or

(c)  payment of any dividend,

whichever is earliest.

(4) The tax on distributed profits so paid by the company shall be treated as the final payment of tax in respect of the amount declared, distributed or paid as dividends and no further credit therefor shall be claimed by the company or by any other person in respect of the amount of tax so paid.

(5) No deduction under any other provision of this Act shall be allowed to the company or a shareholder in respect of the amount which has been charged to tax under sub-section (1) or the tax thereon.

⁴[(6) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of an undertaking or enterprise engaged in developing or developing and operating or developing, operating and maintaining a Special Economic Zone for any assessment year on any amount declared, distributed or paid by such Developer or enterprise, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2005 out of its current income either in the hands of the Developer or enterprise or the person receiving such dividend ⁵[***]] :

⁶[Provided that the provisions of this sub-section shall cease to have effect from the 1st day of June, 2011.]

1.    Substituted by the Finance Act, 2003, w.e.f. 1-4-2003. Earlier sub-section (1) was amended by the Finance Act, 2000, w.e.f. 1-6-2000, Finance Act, 2001, w.e.f. 1-6-2001 and Finance Act, 2002, w.e.f. 1-4-2003.

2.    Substituted for "twelve and one-half" by the Finance Act, 2007, w.e.f. 1-4-2007.

3.    Substituted by the Finance (No. 2) Act, 2009, w.r.e.f. 1-4-2009. Earlier sub-section (1A), was inserted by the Finance Act, 2008, w.e.f. 1-4-2008.

     3a. Inserted by the Finance Act, 2012, w.e.f. 1-7-2012.

3b. Substituted for "paid tax under this section on such dividend; and" by the Finance Act, 2012, w.e.f. 1-7-2012.

       3c.Omitted by the Finance Act, 2012, w.e.f. 1-7-2012. Prior to its omission, clause (c) read as: "(c) the domestic company is not a subsidiary of any other company :"

4.    Inserted by the Special Economic Zones Act, 2005, w.e.f. 10-2-2006.

5.    Words "not falling under clause (23G) of section 10" omitted by the Finance Act, 2006, w.e.f. 1-4-2007.

6.    Inserted by the Finance Act, 2011, w.e.f. 1-6-2011.

Resolutions

FORMATS

AGENDA: TO ACCEPT THE RESIGNATION OF DIRECTOR

“RESOLVED THAT the resignation of Mr. _______________ from the directorship of the Company be and is hereby accepted and taken on record ;

RESOLVED FURTHER THAT Mr. ____________, Company Secretary or Mr. ____________, Director  be and is hereby authorised to efile the necessary Form 32 with the Registrar of Companies (State name);

RESOLVED FURTHER THAT the Board places on record and appreciates the valuable services rendered by Mr. _______________ during his tenure as a Director of the Company." 

AGENDA: TO APPOINT ADDITIONAL DIRECTOR

“RESOLVED THAT Mr. ______________ be and is hereby appointed as Additional Director of the Company in accordance with the Articles of Association of the Company and pursuant to Section 260 of the Companies Act 1956;

“RESOLVED FURTHER THAT Mr. ____________, Company Secretary or Mr. ____________, Director  be and is hereby authorised to efile the necessary Form 32 with the Registrar of Companies (State name) to give effect to the said resolution."

AGENDA: TO APPOINT ALTERNATE DIRECTOR

“RESOLVED THAT as per the Article .......... 

of the Articles of Association of the Company and

pursuant to the provision of Section 313 of the Companies Act, 1956 , Mr. ________, be and is hereby appointed as Alternate Director to Mr.___________, with effect from ______ , who shall be anot availbale for a period of ______.

“RESOLVED FURTHER THAT Mr. ____________, Company Secretary or Mr. ____________, Director  be and is hereby authorised to efile the necessary Intimations as per prescribed format with the Registrar of Companies (State name) to give effect to the said resolution."

AGENDA: TO APPOINT

 AUDITORS

“RESOLVED THAT the consent of the Board be and is hereby recorded for the  Appointment of M/s ___, Chartered Accountants, ....... (Place Name) as the first Auditors of the Company to hold office from the date of incorporation till the conclusion of the first Annual General Meeting of the Company;

“RESOLVED FURTHER THAT terms of the appointmnet of 

M/s .........., Chartered Accountants, .... (Place Name) be decided as per the mutual agreement

 in this regard.”

AGENDA: TO APPOINT

 COMPANY SECRETARY

“RESOLVED THAT pursuant to section 383A and other applicable provision of the Companies Act, 1956, the Borad of Directors be are is unanimously agreed to appoint Mr. _______________ as Secretary of the Company on the terms and conditions as set out in the appointment letter dated the ____________, 20___ (a copy of which tabled before the meeting under the signature of the Chairman hereof for the purpose of identification) with effect from the _____________”.

 “RESOLVED FURTHER THAT  Mr. ____________, Director  be and is hereby authorised to efile the necessary Form 32 with the Registrar of Companies (State name) to give effect to the said resolution."