Call Us :   +91 - 40 - 66663867 / 66661502

Quick Referencer - Income Tax and Wealth Tax

 

INDEX   [Click on below links]

1.

Tax Rates

2.

Residential Status

3.

Taxability of Income under different heads

 

-  Income from Salary

 

-  Income from House Property

 

-  Profits & Gains of Business or Profession

 

-  Income from Capital Gains

 

-  Income from Other Sources

4.

Deduction from Total Income u/s 80C to 80U

5.

Clubbing of Income

6.

Carry Forward & Set off of losses

7.

Advance Tax

8.

Return of Income

9.

Period of Limitation

10.

Interest u/s 234A to 234D

11.

Penalty

12.

Deduction of tax at source (TDS) & other provisions related to TDS

13.

Transfer Pricing Provisions

14.

Wealth Tax

15.

Glimpse of the initiatives taken by the Direct Taxes Committee during the year 2012-13 & 2011-12


TAX RATES

RANGE OF INCOME

AY 2014-15

AY 2015-16

AY 2016-17

AY 2017-18

AY 2018-19

Maximum exemption limit (For Indl. other than resident women/resident senior citizen/super senior citizen & HUF/AOP/BOIexactly;mso-pagination:widow-orphan'>Maximum exemption limit (For Indl. other than resident women/resident senior citizen/super senior citizen & HUF/AOP/BOI

1,50,000

1,60,000

1,60,000

1,80,000

2,50,000

For Resident Women Below 60yrs (65 yrs till 31.03.2015)

1,80,000

1,90,000

1,90,000

1,90,000

2,50,000

For Resident Senior Citizen 60yrs or more (65 yrs till 31.03.2015)

2,25,000

2,40,000

2,40,000

2,50,000

3,00,000

For Resident Super Senior Citizen 80yrs or more

-

-

-

5,00,000

5,00,000

Max. exemption limit to Rs. 3,00,000

10%

10%

10%

10%

10%

Rs. 3,00,001 - Rs. 5,00,000

20%

20%

10%

10%

10%

Rs. 5,00,001 - Rs. 8,00,000

30%

30%

20%

20%

20%

Rs. 8,00,001 - Rs. 10,00,000

30%

30%

30%

30%

20%

Rs. 10,00,001 & above

30%

30%

30%

30%

30%

Surcharge (if taxable income exceeds Rs. 10,00,000)

10%

-

-

-

-

EC&SHEC

3%

3%

3%

3%

3%

Taxability of Firm &LLP

AY 2014-15

AY 2015-16

AY 2016-17

AY 2017-18

AY 2018-19

TAX RATE -in 5.4pt'>

TAX RATE -
Other than LLP

LLP

30%

-

30%
30%

30%

30%

30%

30%

30%
30%

SURCHARGE (if taxable income exceeds Rs. 1 crore) -
Other than LLP
LLP

10%

-

-

-

-

-

-

-

-

-

Alternate Min.Tax (AMT)

(%of adjusted total income) u/s 115 JC

-

-

-

18.5%

18.5%

EC&SHEC

- Other than LLP

LLP

 

3%

-

 

3%
3%

 

3%
3%

 

3%
3%

 

3%
3%

 

Taxability of Domestic Company

AY 2014-15

AY 2015-16

AY 2016-17

AY 2017-18

AY 2018-19

TAX RATEcolor: text1;padding:0in 5.4pt 0in 5.4pt'>

TAX RATE

30%

30%

30%

30%

30%

SURCHARGE (if taxable income
exceeds Rs. 1 crore)

10%

10%

7.5%

5%

5%

Minimum Alternate Tax (MAT) (% of Book Profit) u/s ll5JB

10%

15%

18%

18.5%

18.5%

C/F of MAT Credit

10yrs

l0yrs

l0yrs

l0yrs

l0yrs

Dividend tax under section 115-0

15%

15%

15%

15%

15%

Surcharge

10%

10%

7.5%

5%

5%

EC & SHEC

3%

3%

3%

3%

3%

NOTE: Limited Liability Partnership Firm (from AY 2012-13) or any other non-corporate assessee (from AY 2013-14) is subject to AMT. However, if the assessee is an Indl/HUF/AOP/BOI/artificial juridical person and the adjusted total income is Rs. 201acs (or less), then the provisions of AMT are not applicable.

MARGINAL RELIEF: In the case of a company having net income exceeding Rs. 1 crore, the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore


Taxability of Long Term Capital Gain (LTCG)

AY 2014-15

AY 2015-16

AY 2016-17

AY 2017-18

AY 2018-19

TAX RATE (with indexation)<4pt 0in 5.4pt;height:21.0pt'>

TAX RATE (with indexation)

20%

20%

20%

20%

20%

SURCHARGE - On Indl/HUF/AOP/BOI(if taxable income exceeds Rs. 10 lacs)

10%

-

-

-

-

- On Firm (if taxable income exceeds

Rs. 1 crore)

10%

-

-

-

-

- On Domestic Company (if taxable income exceeds Rs. 1 crore)

10%

10%

7.5%

5%

5%

EC&SHEC

3%

3%

3%

3%

3%

NOTE: Tax on LTCG without indexation can be taken at 10% + SC+ EC & SHEC in case of transfer of listed shares/securities/units
EXEMPTION: Income from LTCG is exempt in case of transfer of equity shares/ units of equity oriented fund which are liable to STT.

Taxability of Short Term Capital Gain (STCG)

AY 2014-15

AY 2015-16

AY 2016-17

AY 2017-18

AY 2018-19

TAX RATE mso-border-themecolor:text1;padding:0in 5.4pt 0in 5.4pt;height:21.0pt'>

TAX RATE

15%

15%

15%

15%

15%

SURCHARGE - On Indl/HUF/AOP/BOI (if taxable income exceeds Rs. 10 lacs)

10%

-

-

-

-

- On Firm (if taxable income exceeds Rs. 1 crore)

10%

-

-

-

-

- On Domestic Company (if taxable income exceeds Rs. 1 crore)

10%

10%

7.5%

5%

5%

EC&SHEC

-- Go Top

3%

3%

3%

3%

3%


RESIDENTIAL STATUS

INDIVIDUAL

Resident in India, if any of the following condition is satisfied:

Non - Resident in India, if any of the following condition is NOT satisfied:

a) presence in India for a period of 182 days or more

a) presence in India for a period of 182 days or more

b) presence in India for a period of 60 days or more during the PY and 365 days or more during 4 yrs immediately preceding the relevant PY

b) presence in India for a period of 60 days or more during the PY and 365 days or more during 4 yrs immediately preceding the relevant PY

A Resident Indl. is Resident & ordinarily resident, if the following TWO conditions are satisfied:

a) Resident in India in at least 2 years out of 10 PY immediately preceding the relevant PY

b) presence in India for a period of 730 days or more during 7 yrs immediately preceding the relevant PY

NOTE: The criteria for presence in India for a period of 60 days or more during the PY and 365 days or more during 4 yrs immediately preceding the relevant PY is not applicable in the following cases:

a) In the case of an Indian citizen or a person of Indian origin who come to India on a visit during PY; or
b) In the case of Indian citizen who leaves India during the PY for the purpose of employment; or
c) In the case of an Indian citizen who leaves India during the PY as a member of crew of an Indian ship.

HINDU UNDIVIDED FAMILY (HUF)

A HUF is resident if the control and management of its affairs are wholly or partly situated in India

A HUF is non-resident if its control and management is situated wholly outside India

A resident HUF is ordinarily resident if Karta or Manager satisfies the following TWO conditions:

a) Resident in India in at least 2 years out of 10 PY immediately preceding the relevant PY

b) presence in India for a period of 730 days or more during 7 yrs immediately preceding the relevant PY


PARTNERSHIPS FIRM/LLP/ASSOCIATION OF PERSONS (AOP)

Firm/LLP/AOP is resident if the control and management of its affairs are wholly or partly situated within India

Firm/LLP/AOP is non-resident if the control and management of its affairs are situated wholly outside India

COMPANY

A Foreign Company is resident in India, if the control and management of its affairs are situated wholly in India

A Foreign Company is non-resident in India, if the control and management of its affairs are either wholly or partly situated outside India

An Indian Company is ALWAYS resident in India

-- Go Top

TAXAIBILITY OF INCOME UNDER DIFFERENT HEADS OF INCOME

INCOME FROM SALARIES

Chargeability : Salary income is chargeable to tax either on due basis or on receipt basis

Employer-employee relationship exists between the payer and the payee

House Rent Allowance

(HRA)[sec 10(13A) & Rule 2A]

Least of the following is exempt:

(i) 50% of salary (in metro cities)/ 40% of salary, (ii) HRA received, (iii) Rent paid - 10% of salary

Where Salary=Basic + DA (if terms of employment so provides) + Commission based on fixed percentage of turnover achieved by the employee as per the terms of contract of employment

Entertainment Allowance

[sec 16(ii)]

Deduction= least of the following:

In case of Govt. employees, (I) Rs.5,000 (ii) 20% of basic salary, (iii) the actual amount

of entertainment allowance

In case of Non-Govt. employees, no deduction is available from AY 2002-03

Transport Allowance

Rs. 800/- p.m.

Education Allowance

Rs. 100/- p.m. per child up to TWO children

Valuation of Rent-Free Accommodation

[Rule 3(1)] for private sector or other employees

In case accommodation is owned by employer:

Population exceeding 25Lac (as per 2001 census)-15% of salary/

Population exceeding 10 Lac but less than 25Lac (as per 2001 census) (Less)-10% of salary / Any other- 7.5% of salary

Where Salary= Basic+ DA + Bonus + all taxable allowance

Where the accommodation is taken on lease or rent by the employer -
Amount of lease rent paid or payable or 15 % of Salary (Basic + DA + Bonus + all taxable allowance), whichever is lower.
Concessional unfurnished accommodation - Determine taxable value assuming unfurnished accommodation to be rent free minus amount recovered from employee as rent. If the balancing amount is Zero or negative, nothing is chargeable to tax.
Rent free furnished accommodation - Determine taxable value assuming accommodation to be unfurnished add 10% of original cost of furniture in case furniture is owned by employer, in case furniture is taken on hire then add actual hire charges paid.
Concessional furnished accommodation - Determine taxable value assuming accommodation to be unfurnished add 10% of original cost of furniture in case furniture is owned by employer and / or actual hire charges paid (or payable), in case furniture is taken on rent or hire by employer less amount recovered from employee as rent. Accommodation provided in hotel for a period not exceeding 15 days in aggregate in a previous year - Fully Exempt.
In any other case - 24% of Salary or actual hire charges paid or payable to hotel whichever is lower less amount recovered from employee.

Leave Travel Concession or Assistance (LTC/LTA) [Sec l0(5)]

The exemption shall be allowed subject to following:

Where journey is performed by air

Maximum up to air economy fare of the National Carrier by the shortest route


 

Where places of origin of journey destination are connected by rail and the journey is performed by any mode of transport other than air

Max up to air -conditioned first class rail fare by the shortest route.

 

 

Where the places of origin of journey and destination (or part thereof) are not connected by rail and the journey is performed between such places:

a) where a recognized public transport system exists - Max. up to first class or deluxe class fare by the shortest route

b) where no recognized public transport system exists - Max. up to air-conditioned first class rail fare by shortest route.

Employment Tax [Sec 16(iii)]

Deduction of any sum paid on account of tax on employment

TREATMENT OF PROVIDENT FUND

 

Statutory PF(SPF)

Recognized PF(RPF)

Unrecognized PF (URPF)

Employer's contribution to PF

Exempt from tax

Exempt up to 12% of salary and excess is taxable

Exempt from tax

Availability of Deduction u/s 80C of employee's contribution

Available

Available

Not Available

Interest credited to PF

Exempt from tax

Exempt up to notified rate of interest (i.e., 9.5%), excess is taxable

Exempt from tax

Maturity amount at the time of retirement or termination of service

-- Go Top

Exempt from tax

Exempt from tax subject to fulfillment certain conditions, otherwise PF will be treated as URPF

Payment recd. in respect of employee's contribution is exempt; interest thereon is taxable u/h "Other Sources". Balance is taxable u/h "Salaries". However relief can be claimed u/s 89(1)

INCOME FROM HOUSE PROPERTY

Chargeability: The owner of the House Property (consisting of any Building or land appurtenant thereto) is taxed on the income in the form of its Annual Value u/h "Income form House Property"

Gross Annual Value (GAV)

Higher of Reasonable Expected Rent OR Rent actually received or receivable after unrealized rent but before deducting loss due to vacancy - (Less) Loss due to vacancy

Less: Municipal Taxes

Deductible if these taxes are borne by the owner and are actually paid by him during the PY

Net Annual Value (NAV)

NAV=GAV - Municipal Taxes

Less: Deduction u/s 24

 

Standard Deduction u/s 24(a)

@ 30% of NAV is deductible irrespective of any expenditure incurred by the taxpayer

Interest on Borrowed Capital

Deduction is allowable on accrual basis. Maximum amount of interest:

a) Interest payment for self-occupied house for acquisition or construction up to

Rs. 50,000/-

b) Interest payment for re-construction, repairs or renewals up to Rs. 30,000/-

= INCOME FROM HOUSE PROPERTY

-- Go Top

PROFITS & GAINS OF BUSINESS OR PROFESSION

Chargeability: Profits & gains of any business or profession carried on by the assessee at any time during the PY.

Depreciation (sec 32) - depreciation is allowable in respect of tangible and intangible assets

Additional depreciation @20% is available to an assessee engaged in the manufacturing/production of any article, in respect of new plant & machinery installed after 31.03.2005. If the asset is put to use for less than 180 days in the year in which it is acquired, the rate of additional depreciation will be 10%.

* Additional depreciation from AY 2013-14 can be claimed by an assessee, engaged in the business of generation or generation and distribution of power, if normal depreciation is not claimed under SLM u/s 32(1)(i)


Particulars

Income-tax Act, 1961

Company's Act, 1956

Tangible Assets

% WDV (AY 2006-7 onwards)

%WDV

%SLM

Computer H/W&S/W

60%

40%

16.21%

Plant & Machinery

15%

13.91%

4.75%

Furniture & Fixture

10%

18.10%

6.33%

Cars & Vehicles

15%

25.89%

9.50%

Cars & Vehicles used on hire

30%

40%

16.21%

Building-Non residential

10%

10%

3.34%

Building-Residential

5%

5%

1.63%

Books owned by professionals

 

 

 

i) Books being annual publications

100%

Revenue

Revenue

ii) Books other than i) above

60%

13.91%

4.75%

Books owned by assessee carrying on business in running or lending library

100%

-

-

Intangible Assets

Knowhow, patent, copyright, trademarks

25%

AS-26

AS-26

Amount not deductible u/s 40
Sec 40(a)(I)- Interest, royalty, fees for technical services payable outside India to any person or in India to a non-resident. Assessee has to deduct tax at source on the payment so made and deposit the same with the Govt. within the time limit specified u/s 200(1). In the following cases, expenditure is not deductible:

-  If the tax is deductible but not deducted,

-  Tax is deducted during the current year (CY) but not deposited during the CY,

-  Tax is deducted during the CY but deposited by the assessee in the next FY after the due date u/s 200(l).

Deduction will be allowed, in respect of above expenses, while computing business income of a subsequent PY in which such tax is paid.

Sec 40(a)(ia)- Compliance of TDS provisions in case of resident assessee- Interest, commission or brokerage, fees for technical services/professional services, payment to contractors/sub-contractors, rent or payment of royalty to a resident

Case-I: Tax is deductible but not deducted

No deduction in the current PY

If tax is deducted in any subsequent year, the expenditure will be allowed as deductible in the year in which TDS will be deposited by the assessee with the Govt.

Case-II: Tax is deductible and deducted

during the PY but it is not deposited on or before the due date of submission of

ROI u/s 139(1)

No deduction in the current PY

If tax is deposited with the Govt. after the due date of submission of ROI, the expenditure will be deductible in that year in which tax will be deposited

W.e.f. AY2013-14, a relief will be available in the aforesaid case if the aforesaid conditions are satisfied:-

·          Tax is deductible on the aforesaid payments but it is not deducted(wholly or partly) by the payer

·          The payer is not deemed to be an assessee-in-default under the first proviso to sec 201(l). Under the first proviso to sec 201(1), the payer is not deemed to be an assessee-in-default if:

-  the resident recipient has furnished his ROI u/s 139;

-  the resident recipient has taken into account the above income in such ROI;

-  the resident recipient has paid the tax due on the income declared in such ROI; and

-  the payer furnishes a certificate to this effect from a Chartered Accountant in a prescribed form.

If the above conditions are satisfied, then it shall be deemed that the payer has deducted and paid the tax on such amount on the date of the furnishing of ROI by the resident recipient.

Sec 40(a)(ii)- Any sum paid on account of income-tax, interest, penalty (fine for non-payment/late payment of income-tax) is not deductible.

Sec 40(a)(iia) - Any sum paid on account of wealth-tax under Wealth Act, 1957, or tax of a similar nature is not deductible.

Sec 40(a)(iii) - Salary payable outside India or in India to a non-resident and tax has not been deducted at source under the Income-tax Act, then payment is not allowed as deduction.

Sec 40A(2)-A my expenditure incurred by an assessee in respect of which payment has been made to specified persons, is liable to be disallowed in computing business profit to the extent such expenditure is considered to be excessive or unreasonable, having regard to the fair market value of goods or services or facilities, etc.


NOTE: From AY 2013-14, the aforesaid disallowance shall not be made in respect of a specified domestic transaction referred to I sec 92BA, if such transaction is at arm's length price.
Sec 40A(3)- Payment made, in respect of an expenditure, in excess of Rs.20,000/- otherwise than by an account payee cheque or an account payee bank draft will not be allowed as deduction. However, Rule 6DD prescribes certain cases and circumstances in which payment in excess of Rs. 20,000/- may be made otherwise than by an account payee cheque or an account payee bank draft.
Sec 44AB- Audit of accounts by certain persons

Different Taxpayers

When compulsory audit required under sec 44AB

A person carrying on a

Up to AY 2010-11

For AY 2011-12 & 2012-13

From AY 2013-14

Business

If total sales/turnover/gross receipts for the PY exceeds-

Rs. 40 lakh

Rs. 60 lakh

Rs. 1 crore

Profession

If total sales/turnover/gross receipts for the PY exceeds-

Rs. 10 lakh

Rs. 15 lakh

Rs. 25 lakh

A person covered u/s
44AD/44AE/44AF/44BB/44BBB

If such person claims that the profits and gains from the business are lower than the profits & gains computed under these sections (irrespective of his turnover)

A person covered u/s 44AD

If such person claims that the profits and gains from the business are lower than the profits & gains computed in accordance with the provisions of sec 44 AD(1) and if his income exceeds the maximum amount which is not chargeable to tax (applicable from AY 2011-12)

Different Taxpayers

Tax Audit Form

Statement
particulars

Due date for getting books audited

Due date for submission of audit report

In case of a person who carries on business/ profession and who is required by or under any law to get his accounts audited

Form No.3CA

Form No. 3CD

Due date of furnishing
ROI u/s 139(1)

Due date of furnishing
ROI u/s 139(1)

In case of a person who carries on business/ profession and who is not required by or under any law to get his accounts audited other than Income Tax Act, 1961.

Form No.3CB

Form No. 3CD

Due date of furnishing ROI u/s 139(1)

Due date of furnishing ROI u/s 139(1)


Sec44AD

Eligible Assessee

Non-eligible assessee

Has claimed No deduction

Eligible Business

Turnover

Is it possible to declare lower income

Computation of income on estimated basis @ 8% of the gross receipts or total turnover

Individual HUF

Partnership firm (not being LLP)

(i) a person carrying on profession as referred to in sec44AA(l);

(ii) a person earning income in the nature of commission or brokerage;

(iii) a person carrying on any agency business

The assessee has not claimed any deduction u/s l0A, 10AA,10B,10BA,80HH to 80RRB in the relevant AY.

The assessee should not be engaged in the business of plying, hiring in or leasing goods carriages referred to sec 44 AE.

Total turnover/gross receipt in the PY of the business should not exceed Rs. 601akh. (Rs.l crore from the AY 2013-14)

Assessee can declare lower than the deemed profits subject to fulfillment of following conditions by the taxpayer:

i) maintain books of accounts as per sec44AA (irrespective of income or turnover) if his total income exceeds the exemption limit.

ii) get his books of accounts audited u/s 44AB (irrespective of turnover) if his total income exceeds the exemption limit.


Sec 44AE

Eligible Assessee

Min. Deemed profits/gains:

Business of plying, hiring or leasing goods carriages

-- Go Top

Assessee who owns not more than 10 goods carriages at any time during the PY

For heavy goods vehicle (more than 12 ton capacity)-

Rs.5,000/-p.m. or part of a month during which the heavy vehicle is

owned by the assessee in the PY
For goods carriages other than heavy vehicle (up to 12 ton capacity)
Rs.4,500/- p.m. or part of a month during which the goods carriages is owned by the assessee in the PY

INCOME FROM CAPITAL GAINS

Chargeability: Any profit or gain arising from the sale or transfer of a capital asset is chargeable to tax u/h "Capital Gains"

Capital Asset defined u/s 2(14) includes property of any kind, whether fixed or circulating, moveable or immovable, tangible or intangible. Where the "Property" includes any rights in or in relation to an Indian Company, including rights of management or control or any other rights whatsoever.

The following assets are EXCLUDED from the definition of Capital Assets:

a) any stock-in-trade, consumable stores or raw material held for the purpose of business or profession;

b) personal effects of the assessees (jewellery, archaeological collections, drawings, paintings, sculptures; or any work of art are treated as a capital asset even though it is meant for personal use);

c) agricultural land in India provided it is not situated in any notified area or in any area within the jurisdiction of a municipality or a cantonment board having population of 10,000 or more;

d) 61/2% Gold Bonds, 1977 or 7% Gold Bonds, 1980 or National Defence Bonds, 1980 issued by the Central Government;

e) Special Bearer Bonds, 1991;

f) Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999

Computation of STCG/LTCG

Amount

 

Cost Inflation Index (CII)

FULL VALUE OF CONSIDERATION

XXXXX

 

 

FY

CII

FY

CII

FY

CII

DEDUCT: a) expenditure incurred wholly and exclusively in connection with such transfer

-

 

1981-82

100

1992-93

223

2003-04

463

 

1982-83

109

1993-94

244

2004-05

480

b) Cost of Acquisition (indexed cost of acquisition in case of LTCG)

-

 

1983-84

116

1994-95

259

2005-06

497

 

 

1984-85

125

1995-96

281

2006-07

519

c) Cost of improvement (indexed cost of improvement in case of LTCG)

-

 

1985-86

133

1996-97

305

2007-08

551

 

1986-87

140

1997-98

331

2008-09

582

BALANCE

XXXXX

 

 

1987-88

150

1998-99

351

2009-10

632

LESS: Exemption u/s 54B, 54D &54G (for STCG)/
Exemption u/s 54,54B, 54D, 54EC, 54ED, 54F&54G(for LTCG)

-

 

1988-89

161

1999-00

389

2010-11

711

 

1989-90

172

2000-01

406

2011-12

785

 

1990-91

182

2001-02

426

-

-

SHORT TERM CAPITAL GAIN/LONG TERM CAPITAL GAIN

XXXXX

 

1991-92

199

2002-03

447

-

-

Capital asset held by an assessee for not more than 36 months immediately prior to its DOT is called "Short Term Capital Asset". However, in case of equity/preference shares, listed securities, units of UTI/MF, zero coupon bonds, the period of holding is 12 months for being a Short Term Capital Asset. Capital asset other than short-term is regarded as "Long-Term Capital Asset". Deduction u/s 80C-80U is not allowed on STCG (u/s 111 A) & any LTCG.

EXEMPTION FROM. CAPITAL GAIN TAX

Sec

Eligible

Assessee

Eligible Asset

New Asset

Time limit for acquiring new asset (where DOT=Date of Transfer)

Qualifying

Amount

"Capital Gain Account Scheme"

54

Indl/HUF

Residential House

Long term Residential House

Purchase: l yr before DOT/2yrs after DOT Construction: 3yrs after DOT

Lower of the capital gain or investment in new capital asset

Applicable


54B

Indl/HUF (HUF from AY-2013-14)

Agriculture land used by indl. or his parents or HUF for a period of 2 yrs immediately preceding the DOT

Another land for

agriculture

purposes

Purchase: 2yrs after DOT

Lower of the capital gain or investment in new capital asset

Applicable

54EC

Any person

Any long-term capital asset

"Long term specified asset" means any bond redeemable after 3yrs in NHAI or RECL

Within 6 months from the DOT

Lower of the capital gain or investment in new capital asset (w.e.f.01/04/2007 investment in long-Term specified asset cannot exceed Rs. 50 lacs during any financial year)

N.A.

54F

Indl./HUF

Any Long-term capital asset other than a residential house

A Residential House

Purchase: lyr before DOT/2yrs
after DOT
Construction:
3yrs after DOT

Net consideration (if cost of new asset not less than the same) Capital gains X Amount invested / Net consideration (if cost of new asset is less than net consideration)

Applicable

54GB

Indl./HUF

A long-term capital asset being residential property (a house or plot of land)

Equity shares of eligible company*

Before the due date of furnishing ROI u/s 139(1)

Max up to the amount of capital gain Investment in new asset by eligible company) /Net Sales consideration X Capital gain

Applicable

* For the purpose of sec 54GB, eligible company means a company which satisfies the following conditions:-

- Incorporated by the assessee on or after 1st April (of the PY in which residential property is transferred) but on or before the due date of submission u/s l39(l) by the assessee;

- engaged in the business of manufacture of any article or thing;

- assessee has more than 50% share capital(or voting power) after subscription in shares by the assessee;

- the company qualifies to be a SME (i.e. where investment in plant & machinery is more than Rs. 251akh but not more than Rs. 10 crore)

-- Go Top


INCOME FROM OTHER SOURCES

Chargeability: A source of income which does not specifically fall under any other head of income.

Sec 56(2)(vii)- If an Indl/HUF receives on or after 01-10-2009 a sum of money or property without consideration, it is chargeable to tax in the hands of the recipients u/h "Income from Other Sources"

Category

Criteria

Taxability of receipt

Any sum of money (gift in cash or by chq or draft

Without consideration: Agg. Amt of sum recd. >Rs. 50,000

Whole amount received

Immovable property without consideration

Without consideration: Stamp Duty value (SDV)>Rs. 50,000

Whole stamp duty value

 

 

With consideration: Consideration<Stamp duty value(SDV)

Nothing taxable, even if: (SDV- consideration amount)>Rs. 50,000


Movable property without consideration
Movable property for a consideration less than FMV

Without consideration: Agg. FMV>Rs. 50,000 Agg. FMV - Consideration > Rs. 50,000

Whole of Agg. FMV
Agg. FMV-Consideration

Section 56(2)(viia) - W.e.f. 1-06-2010, if a Company(other than company in which public are substantially interested)/ Firm receives any property being shares without consideration, it is chargeable to tax in the hands of the recipients u/h "Income from Other Sources"

Property being shares

Without consideration: Agg amt >Rs. 50,000

Whole of agg FMV

Property being shares

With consideration: Agg. FMV - Consideration > Rs. 50,000

Agg. FMV- Consideration

* Exempted categories-Money/property recd from a relative/ on the occasion of marriage of indl./recd by way of inheritance/ recd in contemplation of death/ recd from local authority/ recd from any trust or institution u/s 10(23C)/ recd from charitable institute registered u/s 12AA.
W.e.f. 1.10.2009 - gift recd by a HUF from its members will be treated as gift recd from a relative.

Sec 56 (2)(viii)- Income by way of interest received on compensation or on enhanced compensation referred to in clause(b) of
section 145A.
Sec 56(2)(viib
) - if a Company(other than company in which public are substantially interested) receives from any person being a resident, any consideration for issue of shares that exceeds the face value of the shares, the amount that exceeds the FMV of such shares, it is chargeable to tax in the hands of the recipients u/h "Income from Other Sources" w.e.f AY 2013-14

INTEREST ON NATIONAL SAVING CERTIFICATES (NSC)

VIII issue / Year

I

II

III

IV

V

VI

Purchased on or after 01 -03-2003 but before 01-12-2011

8.16

8.83

9.55

10.33

11.17

12.08

Purchased on or after 01 -12-2011 but before 01 -04-2012

8.58

9.31

10.11

10.98

11.92

N.A.

Purchased on or after 01 -04-2012

8.78

9.56

10.40

11.31

12.30

N.A.


IX issue / Year

I

II

III

IV

V

VI

VII

VIII

IX

X

Purchased on or after 01 -12-2011 but before 01 -04-2012

8.89

9.68

10.54

11.48

12.50

13.61

14.82

16.13

17.57

19.13

Purchased on or after 01 -04-2012

9.10

9.93

10.83

11.81

12.89

14.06

15.34

16.74

18.26

19.92

Deduction u/s 57- Family pension- lower of Rs. 15,000 or 331/3 % of such income

Any reasonable sum paid by way of remuneration/ commission for the purpose of realizing dividend or interest.

Any other expenditure (not being cap. exp.) expended wholly and exclusively for the purpose of earning such income.

In case of interest on compensation or enhanced compensation: 50% of such interest

-- Go Top

DEDUCTION FROM TOTAL INCOME U/S 80C TO 80U

Sec

Eligible assessee

Nature of deduction

80C

Indl./HUF

Life insurance premia, PF contribution, subscription to NSC/notified units of Mutual Fund or UTI, Tuition fees, Repayment of housing loan, FD for 5yrs, 5yrs term deposit in post office (Amount deductible: Max. Rs.1,00,000/-)

80CCC

Indl.

Contribution to Pension funds (Amount deductible: Max. Rs.1,00,000/-)

80CCD(1)

Indl.

Contribution by an employee or any other individual towards notified pension scheme. (Amount deductible: Max. up to 10% of the salary of the employee or up to 10% of gross total income in the case of any other individual)

* Agg. Amount of deduction u/s 80C, 80CCC & 80CCD(1) cannot exceed Rs. 1,00,000 from AY 2012-13 (till AY 2011-12 sec 80CCD(2) also included in the limit of Rs. 1,00,000)

80CCD(2)

Employees

Contribution by an employer towards notified pension scheme (Amount deductible: Max. up to 10% of the salary of the employee)

80CCF

Indl./HUF

Subscription to long-term infrastructure bonds (applicable for AY 2011-12 & 12-13) (Amount deductible: Max. Rs. 20,000)

80CCG

Resident Indl.

Investment made under any equity saving scheme (applicable from AY 13-14), if gross total income does not exceed Rs. 10lakh (Amount deductible: 50% of amount invested in equity shares, restricted to Rs. 25,000)

80D

Indl./HUF

Medical insurance premia

(Amount deductible: Max. Rs. 30,000 / 40,000 - incase of senior citizen)


 

Individual

HUF

For whose benefit payment can be made

Assessee, spouse of the assessee and dependent children of the assessee

Parents of the assessee whether dependent or not

Any member of family

Medi-claim insurance premium

Deduction available

Deduction available

Deduction available

Contribution to CGHS (from AY 2011-12 onwards)

Deduction available

-

-

Payment on account of preventive health check-up (from AY 2013-14 onwards)

Deduction available

Deduction available

-

Max. amt of deduction
-General Deduction (payment on account of preventive health checkup cannot exceed Rs. 5,000)
-Additional deduction in respect of senior citizen's

Rs. 15,000
Rs. 5,000

Rs. 15,000
Rs.5,000

Rs. 15,000
Rs. 5,000

80DD

Resident Indl. / resident HUF

Maintenance including medical treatment of a handicapped dependent who is a person with disability (Amount deductible: Max. 50,000 for person with disability/ Max. Rs. 1,00,000 for person with severe disability)

80DDB

Resident Indl./resident HUF

Medical treatment expenses (Amount deductible: Rs. 40,000 or (For senior citizen-Rs. 60,000)

* Senior citizen is an individual who is resident in India and who is at least 65yrs (60yrs from AY 2013-14 onwards) of age at any time during the PY.

80E

Indl.

Payment of interest on loan taken for higher studies

(Amount deductible: Entire amt. of interest is deductible for max. of 8yrs)

80G

All assessees

Donation to certain funds, charitable institutions [Amount deductible: Max of 50% of qualifying donation (100% in some cases)] (From AY 2013-14, no deduction u/s 80G will be allowed in respect of donation in cash exceeding Rs.10,000)

80GG

Indl.

Rent paid for furnished/unfurnished accommodation (Amount deductible: Least of following:

i) Rs.2,000/-;

ii) 25% of total income;

iii) Rent paid-10% of total income

80GGA

All assessees not having any income chargeable u/h PGBP

Certain donations for scientific research or rural development. (Amount deductible: sum paid as donations)

(From AY2013-14, no deduction u/s 80G will be allowed in respect of donation in cash exceeding Rs.10,000)

80GGB

Indian Companies

Contribution given by companies to political parties

(Amount deductible: sum contributed to any political party or electoral trust)

80GGC

Assessee (not being local authority and every artificial juridical person wholly or partly funded by the Govt.)

Contribution given by any person to political parties (Amount deductible: sum contributed to any political party or electoral trust)

80TTA

Indl./HUF

Interest in savings account (W.e.f. AY 2013-14, deduction is available in respect of any income by way of interest on deposits in a saving a/c with a bank, co-operative society carrying on banking business or a post office) (Amount deductible: Max. Rs. 10,000)

 

80U

-- Go Top

Resident Indl.

[No deduction, if deposit in savings account is held by or on behalf a firm, AOP/BOI]

Income of person with disability (Amount deductible: Rs.50,000 for person with disability/ Rs. 1,00,000 for person with severe disability)


CLUBBING OF INCOME [Sec 60- 64]

Sec60 - Transfer of Income without transfer of ownership of the asset, is clubbed in the hands of Transferor

Sec64{l)(II) - Any Remuneration received by the Spouse from a concern in which individual has substantial interest, is clubbed in the hands of individual.

No Clubbing - Remuneration solely attributable to the application of technical or professional knowledge and experience of the spouse. When both husband and wife have a substantial interest in a concern and both are in receipt of remuneration from such concern, such remuneration will be clubbed in the hands of husband/wife whose total income excluding such remuneration is greater.

*Substantial interest - In the case of a company, beneficial holding of equity shares not less than 20% voting power or is entitled to not less than 20% of the profits in the case of a concern other than company, at any time during the PY.

Sec64(l)(iv) - Transfer of an asset (other than house property) by an individual to his spouse directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart, any income from such asset is clubbed in the hands of transferor.

Sec 64(l)(vi) - Transfer of an asset by an individual, directly or indirectly after 31.05.1973, without adequate consideration to son's wife, any income from such assets is clubbed in the hands of the transferor.

Sec64(l)(vii) - Transfer of an asset by an individual, directly or indirectly, without adequate consideration to a person or an AOP's for the immediate or deferred benefit of his/her spouse, income arising from the transferred asset is clubbed in the hands of the transferor to the extent of such benefit.

Sec 64(1)(viii) - Transfer of an asset by an individual, directly or indirectly, without adequate consideration to a person or AOP's for the immediate or deferred benefit of son's wife, income arising from the transferred asset is clubbed in the hands of the transferor to the extent of such benefit.

Sec64(lA) - Income accrues or arises to the minor shall be clubbed in the income of his Parents.
No Clubbing if income derived by the minor from manual work/application of his knowledge or talent or if the minor child suffering from disability of the nature specified in sec 80U
Income will be clubbed with the income of that parent whose total income is greater [excluding the income u/s 64(1A)] Where the marriage of the parents doesn't subsist, income will be clubbed with that parent who maintains the minor child in the relevant PY
Where such income is once included in the income of either parent, then any such income arising in any succeeding year shall not be clubbed with other parent, unless the AO is satisfied.

Exemption to the individual in respect of the income of the minor: Rs. 1500/- in respect of each minor child restricted to the income so clubbed.

Sec 64(2) - Where a member of a HUF has converted his self-acquired into joint property (or a member transfers his property without consideration to his HUF),

• The entire income from the converted property is taxable as the income of the transferor.

• If the converted property is subsequently partitioned, the income derived from such converted property as is received by the spouse of the transferor will be taxable as income of the transferor.

Income arising to the transferee, from accretion to assets or accumulated income from the assets, is taxable in the hands of Transferee.

-- Go Top

CARRY FORWARD AND SET OFF OF LOSSES

Losses from

Set off against income of

Carry forward and set off

 

Same head

Another head

C/F

Years

Set off against

i

House Property

Any other HP

Any other head

Yes

8

Same head

ii

Speculation business

Speculation business only

No

Yes

4

Speculation profits

iii

Specified business

Specified business only

No

Yes

No limit

Specified business profits

iv

Non- speculation Business

Any business income

Other than

salary income

Yes

8

Any income

under same head

V

Unabsorbed Depreciation/

cap exp. on SR/FP

Any income

any income

Yes

No limit

Any income

other than salary

vi

Long term capital loss

LTCG

No

Yes

8

LTCG

vii

Short term capital loss

STCG/LTCG

No

Yes

8

Any capital gain

viii

Activity of owning &

Maintaining race horses

Such business

No

Yes

4

Same income


ix Winning from lotteries / crossword puzzles etc.

By virtue of sec 58(4), a loss cannot be set off against this income

X Other sources

Any income under

 

 

 

 

(other than viii & ix)

same head (other

 

 

 

 

xi Exempted source

than viii & ix)
No

Any other head
No

No
No

N.A.
N.A.

N.A.
N.A

* It is not necessary to submit return of loss in time in case loss u/h house property and on account of unabsorbed depreciation

-- Go Top

ADVANCE TAX

DUE DATES FOR ADVANCE TAX PAYMENT

Obligation to pay advance tax if advance tax liability is Rs. 10,000 or more.

Exemption:

In case presumptive income u/s 44AD, advance tax is NOT required to be paid during the FY 2010-11 onwards.

Resident individual who is at least 60yrs of age at any time during the financial year, not having any business/profession, is NOT required to pay advance tax w.e.f F.Y 2012-13

-- Go Top

Due dates

Corporate Assessee

Non-Corporate Assessee

By 15th Jun

Up to l5%

-

By 15th Sep

Up to 45%

Up to 30%

By 15th Dec

Up to 75%

Up to 60%

By 15th Mar

Up to 100%

Up to 100%

RETURN OF INCOME (Rule 12)

ITR-1 (SAHAJ)

Indl having income from salary/one HP/other source *

ITR-2

Indl./HUF not having business/professional income

ITR-3

Indl./HUF being partners in firm (not carrying out business/profession under proprietorship)

ITR-4

Indl./HUF having income from business/profession

ITR-4S(SUGAM)

Indl./HUF having business income computed u/s 44AD & AE *

ITR-5

For Firms/AOP's/BOI

ITR-6

For Companies other than claiming exemption u/s 11

ITR-7

For persons incl. companies required to furnish return u/s 139(4A)/(4B)/(4C)/(4D)

ITR-V

Verification form for ITR-1,2,3,4,5 & 6 transmitted electronically without digital signature.

* ITR-1 & 4S are not applicable for AY 2012-13 in case of resident individual having assets (incl. financial interest in any entity) located outside India or any signing authority in any account located outside India.

Note: Return of income or loss in prescribed form by resident other than not ordinarily resident in India in respect of any asset (including any financial interest in any entity) located outside India and also if act as signing authority in any account located outside India. [Newly Inserted, w.e.f 1st April 2012]

-- Go Top


PERIOD OF LIMITATION

Sec

Nature of Compliance

Limitation of time

139(1)

Return of Income

30th Nov. of AY

 

A. Where the assessee is required to furnish report u/s 92E in form 3CEB pertaining to international transaction w.e.f AY 2012-13
B. Where report u/s 92E is not required-

 

 

(a) where the assessee is a company

30th Sep. of AY

 

(b) where the assessee is a non-corporate assessee

 

 

(i) in the case where accounts are to be audited or where accounts of the firm in which assessee is a working partner are required to be audited/in case of co-operative society;

30th Sep. of AY

 

(ii) in other case

31st July of AY


139(3)

Return of loss

Within time allowed u/s 139(1)

139(4)

Belated Return

Within 1 yr from the end of relevant AY or before completion of assessment, whichever is earlier

139(5)

Revised Return

Within 1 yr from the end of relevant AY or before completion of assessment, whichever is earlier

140A

Payment of income-tax on self-

assessment/ payment of interest on tax due for filing belated return or default or delay in payment of advance tax

Before furnishing ROI

143(1)

Intimation u/s 143(1)

Before expiry of 1 yr from the end of FY in which return is furnished 6 months from the end of FY in which return is submitted

143(2)

Serving notice for regular assessment

 

147

Reassessment where assessment has been made u/s 143(3)/147

Within 4 yrs from the end of relevant AY [unless escapement of income is because of assessees failure to file return u/s 139 or in pursuance of notice u/s 142(1) or 148 or to disclose fully and truly all material facts or unless escapement of income is in relation to any asset located outside India]

149(1)

Issuing notice u/s 148 if the escaped income:

 

 

(i) is less than Rs. 1,00,000

Within 4yrs from the end of relevant AY

 

(ii) is Rs. 1,00,000 or more

Within 6yrs from the end of relevant AY

 

(iii) is in relation to any asset (incl. financial interest in any entity) located outside India

Within 16yrs from the end of relevant AY [w.e.f 01/07/2012]

149(3)

Issuing notice u/s 148 to a person treated as agent of non-resident u/s 163

Within 6yrs from the end of relevant AY

153(1)

Passing assessment order u/s 143/144

Within 2yrs from the end of AY in which income is first assessable

153(2)

Making assessment/ reassessment etc. u/s 147

Within 1yr from the end of FY in which notice u/s 148 is served

153(2A)

Making assessment order in pursuance of order u/s 250,254,263 or 264 setting aside or cancelling assessment

Within 1yr from the end of FY in which order u/s 250/254 is recd. By CCIT/CIT or an order u/s 263/264 is passed by CCIT/CIT

153B

Passing assessment order u/s 153A

Within 2yrs from the end of FY in which the last authorizations for search/requisition u/s 132/132A was executed (where the last authorization was executed on or after 1.04.2009 and during the course of assessment/reassessment proceedings(or proceedings u/s 153C), a reference is made to TPO on or after 01.07.2012, the assessment can be completed by the AO within 3yrs from the end of AY)

154(1)

/(7)

Rectification of mistake apparent from record

Within 4yrs from end of FY in which order sought to be amended is passed or within 6 months from the end of the month in which rectification application is recd, by the Income-tax authority, whichever is earlier

249

Filing of appeal to Commissioner (Appeals)

Within 30 days from date of payment of tax/date of service of demand notice/ date of communication of order

253(3)

Filing appeal to Tribunal

Within 60 days from the date on which order sought to be appealed against is communicated.

263(2)

Revising orders prejudicial to revenue by Commissioner

Within 2yrs from end of FY in which order sought to be revised was passed

264(3)

-- Go Top

Filing revision petition to CIT (order not to be prejudicial to assessee)

Within 1yr from date of communication of order sought to be revised


INTEREST

Sec

Particulars

Interest rate

Period for which interest is payable

Amount on which interest is payable

234A

Default in furnishing return of income

1% p.m. or part thereof

Begins: from the due date for filing ROI

Ends: On date of furnishing ROI or date of completion of assessment u/s 144.

Tax on total income determined
u/s 143(1)/143(3)/147/153A
Less: Adv. tax paid/ TDS/ relief u/s90/90A/91/ MAT credit u/s ll5JAA

234B

Interest for default in payment of advance tax

1% p.m. or part thereof

Begins: From 1st April of Assessment Year
Ends: Date of determination of total income u/s 143(1) or regular assessment

Tax on total income determined u/s 143 (l)/regular assessment.
Less: Adv. tax paid/TDS/relief u/s90/90A/91/MAT credit u/s ll5JAA or ll5JD

234C

Deferment of Advance Tax

1% p.m. or part thereof

3 months or 1 month depends upon the deferment in payment of the advance tax

Tax on total income declared in the return filed by the assessee.
Less: TDS/relief u/s90/90A/91/MAT credit u/s 115JAA
Less: Tax credit u/sll5JD in case of non-corporate assessees

234D

-- Go Top

Interest on excess refund

0.5% p.m. or part thereof

Begins: Date of grant of refund u/s 143(1)

Ends: Date of regular assessment

I-If refund is granted u/s 143(1) but no refund is due, then interest is payable on whole amount refunded.
II- If refund is granted u/s 143(1) exceeds the amount refundable on regular assessment, then interest is payable on such excess amount refunded.

PENALTY

Sec

Nature of default

Minimum Penalty

Maximum Penalty

140A(3)

Failure to pay whole or any part of income-tax or interest or both in accordance with the provisions of sec l40A(1)

Such amount as the AO may impose

Tax in arrears

221(1)

Default in making payment of tax within prescribed time

—do—

—do—

271(l)(b)

Failure to comply with notice u/s 115WD(2)/115E(2)/142(1) / 143(2)/direction issued u/s 142(2A)

Rs. 10,000 for each failure

271(l)(c)

Concealment or inaccurate furnishing of particulars of income

100% of tax sought to be evaded

300% of tax sought to be evaded

271A

Failure to keep or maintain book of accounts u/s 44AA

Rs. 25,000

271AA

Failure to keep or maintain in respect of international transaction/w.e.f. 01.07.2012, failure to report international transaction or specified domestic transaction/ w.e.f 01.04.2013, furnishing of incorrect information

2% of value of each international transaction or specified domestic transactions

271B

Failure to get accounts audited u/s 44AB or furnish said report as required u/s 44 AB

1/2% of the total sales, turnover or gross receipts

Rs. 1,50,000

(Rs. 1,00,000 up to31.03.2011)

271BA

Failure to furnish report u/s 92E

Rs.l,00,000

271C

Failure to deduct whole or any part of tax as required u/s 192-196C or fails to pay tax on dividends u/s 1150 or under second proviso to sec 194B

Amount of tax which such person has failed to deduct or pay

271F

Failure 0 furnish ROI before the end of relevant assessment year

Rs.5,000

271G

Failure to furnish information or documents relating to international transaction or (w.e.f 01.04.2013) specified domestic transactions U/s 92D

2% of value of international transaction or specified domestic transactions for each failure

271H

-- Go Top

Failure to submit (or furnish incorrect statements) quarterly TDS/TCS returns (w.e.f 01.07.2012)

Rs. 10,000

Rs. 1,00,000


DEDUCTION OF TAX AT SOURCE [TDS]

Sec

Nature of Payment

Limit up to
30.06.10

Limit w.e.f.
01.07.10

TDS rate

192

Payment of salary to a resident /non-resident [normal rate of tax is applicable]

-

-

-

193

Interest on securities

2,500
(30.06.2012)

5,000
(01.07.2012)

10%

194 A

Interest other than interest on securities (Rs. 10,000 for banks/co-operative society/post office)

5,000*

5,000*

10%

194B

Winnings from lottery or crossword puzzle or card game or other game

5,000

10,000

30%

194BB

Winnings from horse races to a resident/non-resident

2,500

5,000

30%

194C

Payment to contractor/sub-contractor (Note 1 & 2)

 

 

 

a) Payment/credit to an indl./HUF-single payment

- aggregate payment

20,000
50,000

30,000
75,000

1%

b) Payment/credit to any person other than indl./HUF - single payment

- aggregate payment

20,000
50,000

30,000
75,000

2%

194D

Insurance commission

5,000

20,000

10%

194H

Commission or brokerage

2,500

5,000

10%

194I

Rent to a resident

 

 

 

a) Rent on plant & machinery

1,20,000

1,80,000

2%*

b) Rent on land or building or furniture or fitting

1,20,000

1,80,000

10%*

194J

Professional fees, technical fees, remuneration or fees or commission to a director of a company, royalty paid or payable to a resident (Note 1 -3)

20,000

30,000

10%

194LA

Compensation payable on compulsory acquisition of immovable property

1,00,000
(30.06.2012)

2,00,000
(01.07.2012)

10%

194LB

Interest payable to non-resident by an infrastructure debt fund

-

-

5%**

194LC

Interest payable to non-resident/foreign company by an Indian specified company

-

-

5%**

W.e.f. 01.04.2010 - If the recipient doesn't furnish his PAN tax will be deducted @ 20%

Note 1- If recipient is a transporter contractor (any person) and furnishes his PAN to the deductor, tax is not deductible (w.e.f 01.10.2009) (PAN intimated to ITD)

Note 2 - Tax is deductible on the entire consideration including service tax (if any)

Note 3 - Remuneration paid to a Director, which is not in the nature of salary; deduct TDS@10% of such remuneration w.e.f
01.07.2012.

* Tax is not deductible on service tax-Circular No. 4/2008, dated 28.04.2008

# Surcharge, EC & SHEC are not applicable. However, EC & SHEC is applicable on TDS from salary.

** Surcharge @2% is applicable if the recipient is a foreign co. and payment is subject to TDS during FY exceeds Rs. 1 crore and not applicable for non-resident other than foreign company. However, EC & SHEC are applicable if recipient is a non-resident or a foreign CO.

No deduction to be made in certain cases (sec 197A)

Declaration is to be submitted by the recipient in duplicate to the payer of income along with PAN in Form No. 15G (Form No. 15H for senior citizen), the payer will not deduct TDS. [Senior citizen is a resident individual who is at least 60yrs of age (65yrs is applicable up to 31.03.2011) during the financial year]. The payer is required to deliver to the CIT (to whom AO having jurisdiction to assess the payer is subordinate) one copy of said declaration within 7 days of the month next following the month in which such form is furnished to him.


PROVISIONS RELATED TO TDS

Deposit of TDS

Where amount is paid/credited before the m/o March: Within 7days from the end of the month in which tax is deducted
Where amount is paid/credited in the m/o March: By 30th April

Quarterly statement of TDS/TCS

Tax deduction from salary u/s 192

Form 24Q

 

 

Tax deduction when deductee's are non-resident (not being company), foreign company & persons who are resident but not ordinarily resident

Form 27Q

 

Tax deduction in any other case

Form 26Q

 

Tax collection

Form 27EQ

Quarter ending

Govt. Deductors (w.e.f. 01.11.2011)

Other Deductors/ Govt deductors prior to 01.11.2011

 

 

Due date for submission TDS/TCS returns

Time-limit for issue of TDS/TCS certificate (Form 16A/Form 27D)

Due date for submission TDS/TCS returns

Time-limit for issue of TDS/TCS certificate (Form 16A/Form 27D)

30th June

31st July

15th Aug

15th July

30th July

30th Sep

31st Oct

15th Nov

15th Oct

30th Oct

31st Dec

31st Jan

15th Feb

15th Jan

30th Jan

31st Mar

15th May

30th May (Form 16 by 31st May of AY)

15th May

30th May (Form 16 by 31st May of AY)

Interest U/s 201

(1A)/206(7)

Rate of interest
(p.m. or part thereof)

Period of which interest is payable (w.e.f. 01.07.2010)

 

1%

From the date on which tax was deductible to the date on which tax is actually deducted.

 

1.5%

From the date on which tax was actually deducted to the date on which tax is actually paid.

W.e.f. 01.07.2012, the payer shall not be deemed to be an assessee in default if-

-  the resident recipient has included such income in his return submitted u/s 139 and the recipient has paid tax on such income; and

-  the payer submits a certificate to this effect from a Chartered Accountant in a prescribed form.

In such a case, interest shall be payable @ 1% from the date on which tax was deductible to the date of furnishing of return of income by the resident recipient.
Similar rule will be applicable from July 1,2012 in the case of non-collection of tax at source.

-- Go Top

TRANSFER PRICING REGULATIONS [Sec 92 -94A]

• Income arising from an International Transaction including cost allocation / apportion arrangements and Specified Domestic Transactions subject to transfer pricing regulations;

• Meaning of international transaction given in section 92B;

• Meaning of specified domestic transaction in excess of aggregate of Rs. 5 crores refer to in Section 92BA

• Requirement to maintain requisite documentation u/s 92D read with Rule 10D if value of international transaction exceeds 1 Cr. In case of international transactions(otherwise only arms length price needs to be demonstrated) and 5 Cr in case of specified domestic transactions;

• Report from Accountant in Form 3CEB in respect of international transaction and specified domestic transaction to be filed physically with the jurisdictional Assessing Officer u/s 92E by 30th November.

-- Go Top


WEALTH TAX

Chargeability: Wealth Tax is charged for every assessment year in respect of net wealth of the corresponding valuation date of every individual, HUF, and company, @ 1% of the amount by which net wealth exceeds Rs. 100,00,000 (Rs. 30,00,000 up to AY 2012-13) Where Valuation date=31st March immediately preceding the AY

EXEMPTED ASSESSEES

COMPUTATION OF NET WEALTH

Any company registered u/s 25 of the Companies Act, 1956

Value of assets belonging to the assessee as on the valuation date

XXX

Any Co-operative society

Add: Deemed Assets u/s 4

XXX

Any social club

Less: Exempted assets u/s 5

XXX

Any political party

GROSS WEALTH

XXX

A mutual fund specified u/s 10(23D)

Less: Debts owed by the assessee incurred on

XXX

The Reserve Bank of India

the assets included in the net wealth

XXX

 

NET WEALTH

XXX

ASSETS |Sec 2ea]

·          Guest House, residential house or commercial building

Exception: (a) A house exclusively for residential purpose allotted by a company to an employee/ officer/ director who is in whole- time employment, having gross annual salary of less than Rs. 5,00,000 (Rs. 10,00,000 w.e.f. AY 2013-14);

(b) any house for residential or commercial purposes which forms part of Stock-in-trade;

(c) any house used for business or profession carried on by the assessee;

(d) any residential property that has been let out for 300 days or more in the PY;

(e) any commercial establishments or complexes.

·          Motor Cars

Exception: (a) Motor cars used by the assessee in the business of running them on hire;
(b) Motor cars held as stock-in-trade

·          Jewellery, Bullion, furniture, utensils and any other article made wholly or partly of gold, silver, platinum or any other

precious metal
Exception: (a) Jewellery as stock-in-trade

(b) Jewellery doesn't include Gold Deposit Bonds issued under Gold Deposit Scheme, 1999, notified by the Central Govt.

·          Yachts, Boats and aircrafts
Exception: Used for commercial purposes.

·          Urban Land (Land situated in municipality whose population exceeds 10,000 or within 8K.m. from local limit of municipality)
Exception: (a) Land on which construction of building is not permissible under any law for the time being in force in the area in which land is situated;

(b) Land occupied by any building which has been constructed with the approval of the appropriate authority;

(c) Any unused land held by the assessee for industrial purposes for a period of 2 yrs from the date of its acquisition;

(d) Any land held by the assessee as stock-in-trade for a period of 10 yrs from the date of its acquisition.

·          Cash-in-hand- In case of Indl./HUF - Cash in hand exceeding Rs. 50,000 on the valuation date;

In any other case - any amount Not recorded in the books of accounts.

DEEMED ASSETS |Sec 4]

·          Assets transferred to spouse otherwise than for adequate consideration or in connection with an agreement to live apart;

·          Assets held by minor child not being married daughter. Exception: Net wealth of minor child will not be clubbed in the following cases

a)     minor child suffering from the disability of the nature specified u/s 80U of the Income-tax Act, 1961;

b)     assets acquired by the minor child from the income earned on account of manual work or any activity involving application of skills, talent or specialized knowledge or experience;

·          Asset transferred to a person or an AOP without adequate consideration for the benefit of the transferor or his/her spouse;

·          Assets transferred under revocable transfer;

·          Assets transferred to son's wife;

·          Asset transferred to any person or an AOP without adequate consideration for the benefit of son's wife;


·          Interest of Partner of a firm or member of AOP;

·          Conversion by an individual of his self-acquired property into joint family property without adequate consideration;

·          The value of any assets transferred under an irrevocable transfer, as and when the power to revoke arises to him;

·          Gifts by book entries;

·          Holder of impartible estate;

·          Property held by a member of a housing society;

·          Property held by a person in part performance of a contract.

EXEMPTED ASSETS (Sec 5]

a) Property held under trust or other legal obligation for any public purpose of charitable or religious nature in India;

d) One house or a part of house or plot of land (500sq.mt. or less) belonging to an individual or HUF

b) Coparcenary interest in a HUF

e) Assets belonging to Indian repatriates

c) Residential building of a former ruler

f) Former Ruler's Jewellery

VALUATION OF ASSETS [Schedule III to Wealth Tax Act, 1957]

Valuation of Immovable Property

Rule 3 to 8

Global valuation of assets of Business

Rule 14

Valuation of Interest in firm/AOP's

Rule 15 & 16

Valuation of life interest

Rule 17

Valuation of Jewellery

Rule 18 & 19

Valuation of other assets

Rule 20

Restrictive covenants to be ignored

-- Go Top

Rule 21


A GLIMPSE OF INITIATIVES TAKEN BY DIRECT TAXES COMMITTEE DURING THE YEAR 2012-13 & 2011-12

1. ACTIVITIES RELATING TO UNION BUDGET

-  Budget Viewing Workshop and Live Webcast on Union Budget in both years

-  Articles on Direct taxes proposals of Union Budget were published in the Budget Special issue of CA Journal.

-  Submission of Post-Budget Memorandum to the Government.

2. REPRESENTATIONS / INTERACTIONS WITH GOVERNMENT (Ministry of Finance and Ministry of Corporate affairs)

-  Inputs given to the Central Direct Taxes Advisory Committee (CDTAC) chaired by Shri. Pranab Mukherjee, Honble Finance Minister.

-  Representation made on the definition of "Accountant" in Direct Taxes Code Bill- Recommendations of the Standing Committee.

-  Submission of Preliminary PAN based specific issues related to TDS & CPC.

-  Representation to CIT(CPC) towards malicious report in the Gujarat Newspaper pointing Chartered Accountants claiming false claims using e-filing mode of Income-tax Returns.

-  Submission of suggestions on ways and means for improvement of taxpayer's services to DIT(TDS).

-  Representation to CBDT to review the ITR Forms vis-a-vis Revised Schedule VI.

-  Submission of issues involved in convergence of Companies Act, IFRS, GST and DTC on request of Ministry of Corporate affairs.

-  Issues faced by assessees in claim of TDS and e-filing of returns

a)     Interaction with Mr. Sanjai Verma, CIT of CPC Bengaluru

b)     Meeting with Standing Committee on TDS formed by Directorate of Income-tax (TDS)

c)     Submission of illustrative Master Guides in respect of circulars/notifications/ instructions issued by the CBDT to DIT (TDS)

-  Guidelines for empanelment of an accountant, if any, adopted to conduct special audit under section 142(2A).

-  Representation to Chairman, CBDT to curb malpractice of misusing the membership details of others.

-  Preparation and submission of draft Single Direct Taxes Return Form for Direct Taxes Code

-  Guidance by ICAI on Tax queries at the Special Camp hosted by the Income-tax Department at Vikas Bhawan, New Delhi.

-  Representation to Chairman, CBDT for extension of Due date of filing of Income Tax Returns.

-  Submission of inputs on Tax Accounting Standard(TAS)

-  Submission of Pre-Budget Memorandum, 2012

-  Representation to consider the practical difficulties being faced by assessees due to generation of erroneous arrear demands by CPC

-  Organization of LIVE Webcast on" CPC & E-filing-Issues/Resolutions and the way forward".

3. OTHER INITIATIVENIS

-  Formation of groups to draft Forms and Rules relating to Direct Taxes Code Bill, 2010 to give a way forward to the CBDT

-  Release of "Handbook on the Process of E-filing of Income Tax Returns"

-  An Awareness Programme on Direct Taxes Code, 2010 for the Finance executives of Public enterprises.

-  Clarification regarding "specified number of tax audit assignments"

-  Formation Study group to revive the Post qualification -Tax Management course.

-  Providing subscription of material available in the site www.taxmann.com at a negotiated price of Rs.3500/- instead of

Rs. 7500/-to the members of the Institute.

-  Application invited from members for assignment of forensic examination and analysis of seized electronic data by the Income-tax Department.

-- Go Top

taxcaliber logo
Address
  • # 2 & 3 Bhooma Plaza, Street 4,
    Avenue 7, Road No. 1,
    Banjara Hills, Hyderabad - 34.
  • Ph : +91-40-66663867/66661502
Powered By
nhcl logo