CAclubindia News : Income Tax sections at a glance Page 1 of 1

Income Tax sections at a glance

Section Head Limit Remarks

Salary:      
1. 3,50,000 Basic + DA (forming part of
2. Actual retirement benefits) +
10(10) Gratuity
3. Yr*15/30*Ang salary of 10 Months Comm based on % of turn
(Basic+DA+Comm) over
If gratuity is also available:
Accumulated Pension*1/3
10(10A) Pension
Otherwise:
Accumulated pension*1/2
1. Actual
Basic + DA (forming part of
2. 3,00,000
retirement benefits) +
10(10AA) Leave Encashment 3. 10 months avg salary(last drawn)
Comm based on % of turn
4. leave encashment max 30 days for every
over
completed yr of service
1. Actual
Retrenchment 2. 5,00,000
10(10B)
Compensation 3. Amount calculated in accordance with
Industrial Dispute Act
1. Actual
2. 5,00,000
3. Last drawn salary*3*Months of
10(10C) voluntary Retirement
completed yr of service
4. Last drawn salary* Balance no of months
in yr of service left
Basic + DA (forming part of
1. Actual
retirement benefits) +
10(13A) House Rent Allowance 2. Rent paid - 10% of salary
Comm based on % of turn
3. 40% or 50% of salary
over
10(19) Family Pension 15000 or 1/3rd of Family Pension
11(1A) Capital Gains

11(2) Accumulations of Income

Income from Voluntary

12
Contributions
Tax Exemption to Political
13A
Parties
1. 5,000
16(ii) Entertainment Allowance 2. Actual Basic
3. 20% of Basic
House Property:
GAV
Less: Municiple Taxes
(a). Sum reasonably expected from letting
Unrealisable rent
(b). Actual rent recd or receivable
Annual Value NAV
(c). If owing to such vacancy actual rent
Less: 30% of NAV
recd or receivable < (a), Actual rent
Int(Max 150,000)
paid/payable
25AA Arrears of rent received Deduction 30% allowed
Deductions from GTI:
80C LIC, PF Etc 1,00,000* Maximum of 1,00,000
80CCC Pension Funds 1,00,000*
80CCD Pension scheme of CG 1,00,000*
Spouse, Parents and
80D Medical Insurance Premia 20000 for SS/ 15000 for other
children
Spouse, Parents and
80DD Handicapped Dependant 75000 for severe/50000 for normal children, Bro & Sis
(Dependent)
60000 for SS/40000 for other or
80DDB Medical treatment
Actual (Whichever is less)
80E Higher education Entire amount for 7 yr from Initial Ass Yr.
No ceiling of 10% of Adj GTI
50% for Gandhi, nehru/100% other
80G Donation to funds etc Ceiling of 10% of Adj GTI
100% for family planning, sport etc
50% for mandir, charitable etc
1. 2000 PM
80GG Rent paid 2. 25% of TI (After all deductions)
3. Exp.-10% of TI (After all deductions)
donation to scientific
80GGA 100%
research
Political parties by
80GGB 100%
company
Political Parties by
80GGC 100%
Individual
80JJA Bio Degradable waste 100% for 5 consecutive assessment
Employement of new 30% of additional wages paid to new
80JJAA
workmen regular workmen for 3 Ass yr.
80LA offshore bankng units 100% for 5 yr/50% for next 5 yr
1. For Banking, Cottage, Fishing, Milk
Etc=100%
2. Other-
80P Co Operative societies
a. Consumer Co-Op Socity=100%
b. Other=50%
3. Other=100%
1. Lumpsum- 100% Royalty>15% shall be
80QQB Royalty from Books 2. Not Lumpsum- Actual or 3,00,000 ignored, if not paid
(lower) Lumpsum
80RRB Royalty from Patents Actual or 3,00,000 (lower) Not available to NR
80U Person with Disability 75000 for severe/50000 for normal
80-IA a. Infrastructure 100% for 10 yr out of 20 yr's
b. Telecommunication 100% for 5 yr and 30% for next 5 yr
c. SEZ/IT park developmt 100% for 10 yr out of 15 yrs
d. Power business 100% for 10 yr out of 15 yrs
80-IAB SEZ developmt 100% 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 50,000 or 90% of Book
Business Firm First 75,000
limit: Profit( Higher)
Next 75,000 60%
balance profit*(before adjusting
40%
remuneration to partners)
50,000 or 90% of Book
Professional Firm First 1,00,000
Profit( Higher)
Next 1,00,000 60%
balance profit 40%
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:
44AD Civil Construction 8% of Gross receipt
44AE Goods carriage 3500/3150 PM for Heavy/Light Vehicle
44AF Retail Business 5% of Turnover
Capital Gain: Repurchase
54 House to house 1 Yr prior or 2 yr after pur/3yr construct
54B land to land (Agri) 2 Yr from date of transfer
54D L&B to L&B 3yr from date of transfer (Compulsary Acquisition)
Any capital assets to
54EC 6 Month from date of transfer
Shares etc.
Not own >1 house other
54F Other to House 1 Yr prior or 2 yr after pur/3yr construct
than new asset
54G L&B/P&M to L&B/P&M 1 yr prior or 3 yr after fron dt of trnsfer (Urben to Non Urben)
54GA L&B/P&M to L&B/P&M 1 yr prior or 3 yr after fron dt of trnsfer (Urben to SEZ)
139(3) Return of loss Before 31st Oct of relevant AY
Before 1 Yr from end of Relevent AY or Before completn of
139(4) Belated return
Assessment
Return filed originaly U/s 139(1)/142(1)
139(5) Revised Return Before 1 Yr from end of AY or compln of
Assessment.
Defective/Incomplete
139(9)
return
139A PAN
139B Tax return prepares
234A Default in furnishing ROI 1% P.M. or part of Month
1% P.M. or part of Month From April 1 to date of
234B Default in payt of Adv. Tax
If Adv tax paid is <90% of Tax due. determination of Income
234C Deferment of Adv tax 1% P.M. or part of Month
234D Int on Excess Refund 0.50% PM or part of month

Source : -

http://www.caclubindia.com/articles/print_this_page.asp?article_id=1480 22-Mar-11