Monday 17 December 2012

India Income Tax at a Glance






Section
HeadLimitRemarks
Salary:
10(10)Gratuity1. 3,50,000
2. Actual
3. Yr*15/30*Ang salary of 10 Months(Basic+DA+Comm)
Basic + DA (forming part of retirement benefits) + Comm based on % of turn over
10(10A)PensionIf gratuity is also available:
Accumulated Pension*1/3
Otherwise:
Accumulated pension*1/2
10(10AA)Leave Encashment1. Actual
2. 3,00,000
3. 10 months avg salary(last drawn)
4. leave encashment max 30 days for every completed yr of service
Basic + DA (forming part of retirement benefits) + Comm based on % of turn over
10(10B)Retrenchment Compensation1. Actual
2. 5,00,000
3. Amount calculated in accordance with Industrial Dispute Act
10(10C)voluntary Retirement1. Actual
2. 5,00,000
3. Last drawn salary*3*Months of completed yr of service
4. Last drawn salary* Balance no of months in yr of service left
10(13A)House Rent Allowance1. Actual
2. Rent paid – 10% of salary
3. 40% or 50% of salary
Basic + DA (forming part of retirement benefits) + Comm based on % of turn over
10(19)Family Pension15000 or 1/3rd of Family Pension
11(1A)Capital Gains
11(2)Accumulations of Income
12Income from Voluntary Contributions
13ATax Exemption to Political Parties
16(ii)Entertainment Allowance1. 5,000
2. Actual
3. 20% of Basic
Basic
House Property:
Annual Value(a). Sum reasonably expected from letting
(b). Actual rent recd or receivable
(c). If owing to such vacancy actual rent recd or receivable < (a), Actual rent
GAV
Less: Municiple Taxes
Unrealisable rent
NAV
Less: 30% of NAV
Int(Max 150,000) paid/payable
25AAArrears of rent receivedDeduction 30% allowed
Deductions from GTI:
80CLIC, PF Etc1,00,000*Maximum of 1,00,000
80CCCPension Funds1,00,000*
80CCDPension scheme of CG1,00,000*
80DMedical Insurance Premia20000 for SS/ 15000 for otherSpouse, Parents and children
80DDHandicapped Dependant75000 for severe/50000 for normalSpouse, Parents and children, Bro & Sis (Dependent)
80DDBMedical treatment60000 for SS/40000 for other or
Actual (Whichever is less)
80EHigher educationEntire amount for 7 yr from Initial Ass Yr.
80GDonation to funds etcNo ceiling of 10% of Adj GTI
50% for Gandhi, nehru/100% other
Ceiling of 10% of Adj GTI
100% for family planning, sport etc
50% for mandir, charitable etc
80GGRent paid1. 2000 PM
2. 25% of TI (After all deductions)
3. Exp.-10% of TI (After all deductions)
80GGAdonation to scientific research100%
80GGBPolitical parties by company100%
80GGCPolitical Parties by Individual100%
80JJABio Degradable waste100% for 5 consecutive assessment
80JJAAEmployement of new workmen30% of additional wages paid to new regular workmen for 3 Ass yr.
80LAoffshore bankng units100% for 5 yr/50% for next 5 yr
80PCo Operative societies1. For Banking, Cottage, Fishing, Milk Etc=100%
2. Other-
a. Consumer Co-Op Socity=100%
b. Other=50%
3. Other=100%
80QQBRoyalty from Books1. Lumpsum- 100%
2. Not Lumpsum- Actual or 3,00,000 (lower)
Royalty>15% shall be ignored, if not paid Lumpsum
80RRBRoyalty from PatentsActual or 3,00,000 (lower)Not available to NR
80UPerson with Disability75000 for severe/50000 for normal
80-IAa. Infrastructure100% for 10 yr out of 20 yr’s
b. Telecommunication100% for 5 yr and 30% for next 5 yr
c. SEZ/IT park developmt100% for 10 yr out of 15 yrs
d. Power business100% for 10 yr out of 15 yrs
80-IABSEZ developmt100% for 10 yr out of 15 yrs
Taxation of Firms:
Surcharge 10% applicable even if firms Net Income is below Rs. 1 Cr
Maximum Interest on Capital Account 12%
Remuneration to working partner only and only with authorisation in partnership deed
Maximum limit:Business FirmFirst 75,00050,000 or 90% of Book Profit( Higher)
Next 75,00060%
balance profit*(before adjusting remuneration to partners)40%
Professional FirmFirst 1,00,00050,000 or 90% of Book Profit( Higher)
Next 1,00,00060%
balance profit40%
Remuneration and Interest is allowed from presumptive income U/s 44AD,44AE & 44AF.
If there is a change in constitution of firm than share of retired partner shall not be carry forward
Presumptive Taxation:
44ADCivil Construction8% of Gross receipt
44AEGoods carriage3500/3150 PM for Heavy/Light Vehicle
44AFRetail Business5% of Turnover
Capital Gain:Repurchase
54House to house1 Yr prior or 2 yr after pur/3yr construct
54Bland to land (Agri)2 Yr from date of transfer
54DL&B to L&B3yr from date of transfer(Compulsary Acquisition)
54ECAny capital assets to Shares etc.6 Month from date of transfer
54FOther to House1 Yr prior or 2 yr after pur/3yr constructNot own >1 house other than new asset
54GL&B/P&M to L&B/P&M1 yr prior or 3 yr after fron dt of trnsfer(Urben to Non Urben)
54GAL&B/P&M to L&B/P&M1 yr prior or 3 yr after fron dt of trnsfer(Urben to SEZ)
139(3)Return of lossBefore 31st Oct of relevant AY
139(4)Belated returnBefore 1 Yr from end of Relevent AY or Before completn of Assessment
139(5)Revised ReturnReturn filed originaly U/s 139(1)/142(1)
Before 1 Yr from end of AY or compln of Assessment.
139(9)Defective/Incomplete return
139APAN
139BTax return prepares
234ADefault in furnishing ROI1% P.M. or part of Month
234BDefault in payt of Adv. Tax1% P.M. or part of Month
If Adv tax paid is <90% of Tax due.
From April 1 to date of determination of Income
234CDeferment of Adv tax1% P.M. or part of Month
234DInt on Excess Refund0.50% PM or part of month

1 comment:

Jai P Aragrwal said...

Sir,

the content is good but it needs some presentation improvement

Regards,

Agarwal J.P

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