Tax Rates

For Financial year 2011-12 or Assessment Year 2012-13

SENIOR Very Senior
TAX MEN WOMEN CITIZEN(60 –Citizens(Above
80 yrs) 80 years)
Basic Exemption 180000 190000 250000 500000
10% tax 180001 to 500000 190001 to 500000 250001 to 500000 -
20% tax 500001 to 800000 500001 to 800000 500001 to 800000 500001 to 800000
30% tax above 800000 above 800000 above 800000 above 800000
here is no surcharge in the case of every individual, Hindu undivided
Surcharge
family, Association of persons and body of individuals
Education Cess 3% on Income-tax

For income tax rates of earlier years checkout our Income Tax rates Since AY 1992-1993

Total Income:

The gross total income is the sum of all sources of income that an individual has or the total
income he earns in a financial year. It can fall into one of the five heads:
1. Income from Salary
2. Income from House Property
3. Income from Profits and Gains of Business or Profession
4. Income from Capital Gains
5. Income from other Sources

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 Rationale of the study
Investment = Cost Of Capital, like buying securities or other monetary or paper (financial)
assets in the money markets or capital markets, liquid real assets, such as gold, real estate,
or collectibles. Types of financial investments include shares, other equity investment, and
bonds. These financial assets are then expected to provide income or positive future cash
flows, and may increase or decrease in value giving the investor capital gains or losses.
People usually invest when they have good amount of ideal money to spend. The main
objective is to save money for future uncertainties, capital appreciation, more income and
most of all tax savings.
Sector profile in brief
Investing is not guesswork or prediction. It takes more than just a ‘tip’; it needs
training to plan, instinct to pick and sheer intellect to make it work for the investor. Human
nature is fickle, his wants keep changing.
An investment can be described as perfect if it satisfies all the needs of all investors.
So, the starting point in searching for the perfect investment would be to examine investor
needs. If all those needs are met by the investment, then that investment can be termed the
perfect investment.

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INDUSTRY/ SECTOR
PROFILE

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 INDUSTRY/ SECTOR PROFILE
Indian economy and Investment Sectorial growth
India economy is developing at a fast rate and every sector of India economy is
showing a positive growth. The growth development product in India in the year 2006-07 is
9.2%. The rate of robust growth of in industrial development is 10.6%. ‘The Economists’ have
also observed high growth in manufacturing sector and telecommunication sectors. The
Infrastructure sector is also showing impressive growth in the year 2006-07. The secondary
sectors as also shown upward growth, the BSE and NSE sensex has closed at high marks of
21000 and 7000 respectively. In this way all these sectors have contributed to overall growth
of Indian economy.
Behind China, India is the second fastest growing economy. According to a survey by
Goldman Sachs, India will become the 3rd largest economy by 2035. This is measured in
$US. If we use PPP (purchasing power parity) which takes into account local purchasing
power, India already has the 3rd largest economy.
The economy has been growing at an average growth rate of 8.8 per cent in the last
four fiscal years (2003-04 to 2006-07), with the 2006-07 growth rate of 9.6 per cent being the
highest in the last 18 years. Significantly, the industrial and service sectors have been
contributing a major part of this growth, suggesting the structural transformation underway in
the Indian economy.
Within the investment sector the real estate is raising sky high due to
Strong Economic Growth: The world’s fourth largest economy, growing at over 8% the last
two years and forecast to grow at over 7% over the next five; Growth measures supported
across the political spectrum; a boom in the services sector with a strong revival of industry;
powerful internal consumption and demand.

The Rise of the Middle-Class: 300 million and growing with higher disposable incomes and
even higher aspirations; educated, professional workforce driving urbanization beyond the
traditional metro cities.
.

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 Before I start I have to explain what investment is and why people want to invest? It is
very important for me to understand how people plan before investing. These things are
discussed below:

INVESTMENTS

Most investors and advisors spend a great deal of time understanding the merits of the
thousands of investments available in India. Little time, however, is spent understanding the
needs of the investor and ensuring that the most appropriate investments are selected for him.

Why people invest?

Investors do invest in different instrument to simplify their lifestyle and to make certain goals
in future life. Most investors invest for the long term to fulfill the inflation and for the capital
appreciation. By and large the investors have typical requirement to fill, and those are:-
 Capital preservation: - The chance of losing some capital has been a primary need.
This is perhaps the strongest need among investors in India, who have suffered
regularly due to failures of the financial system.

 Wealth generation: - This is largely a factor of investment performance, including

both short-term performance of an investment and long-term performance of a
portfolio. Wealth accumulation is the ultimate measure of the success of an investment
decision.

 Life Cover:- Many investors look for investments that offer good return with adequate
life cover to manage the situations in case of any eventualities. Recent days investors
do invest in the endowment policies and ULIPs.

 Tax savings: Legitimate reduction in the amount of tax payable is an important part of
the Indian psyche. Every rupee saved in taxes goes towards wealth accumulation.

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 Income: This refers to money distributed at intervals by an investment, which are
usually used by the investor for meeting regular expenses. Mostly daily traders invest
for income.

 Future Uncertainty: - No one has seen the future so every person personally save
money for any contingencies. People invest in short term for this. There must be an
easy cash withdraw for the contingencies.

 Ease of withdrawal: This refers to the ability to invest long term but withdraw funds
when desired. This is strongly linked to a sense of ownership. It is normally triggered
by a need to spend capital, change investments or cater to changes in other needs.

 Beat inflation: - inflation is a major player in the economy. It reduced the valuation of
rupee. Investors do in vest to maintain the buying capacity of them.

 Retirement planning: - most of the service person do invest to get return after the
vesting period, for that the investment such a manner that the returns comes at the time
of retirement.

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 COMPANY AND
PRODUCT PROFILE

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 COMPANY AND PRODUCT PROFILE
M/s Agrawal Mittal & co.
M/s Agrawal Mittal & co. . Chartered Accountants are entrusted with substantial
responsibility under various legislations such as compulsory audit of the all companies, banks,
stock brokers, big income-tax assesses, large bank borrowers, etc. This shows the confidence
and trust reposed by the Government and society in the profession. The society has
increasingly recognized the services of CAs in the entire gamut of management consultancy
services including management accounting, management information and control system,
international finance information technology and financial services sector.
The types of functions generally performed by the Chartered Accountants are quite varied;
some of the important ones amongst them are listed below:

(i) Accountancy: The writing up of accounts and the preparation of Financial statements
from the simplest receipts and payment Accounts of a small club to the complex and detail
accounts of large public limited companies.

(ii) Auditing: The purpose of auditing is to satisfy the users of financial Statements that
the accounts presented to them are drawn up on Correct accounting principles and that they
represent a true and fair view of the state of affairs.

(iii) Taxation: The assessment of taxes is closely linked to financial Accounts. The
Chartered Accountant with his experience in accounts is in an advantageous position to
prepare the returns for tax purposes, represent assesses before the income tax authorities and
render general advice on taxes to his clients. The services of CA may be requisitioned by the
tax department for auditing taxation cases with large revenue potential.