I TAX RATES FOR INDIVIDUALS OTHER THAN II, III
& IV BELOW
Upto
1,80,000
- Nil
1,80,000 to
5,00,000
- 10% of the amount exceeding 1,80,000
5,00,000 to
8,00,000
- Rs.32,000 + 20% of the amount exceeding 5,00,000
8,00,000 &
above
- Rs.92,000 + 30% of the amount exceeding 8,00,000
II TAX RATES FOR RESIDENT WOMEN BELOW 60 YEARS
Upto
1,90,000
- Nil
1,90,000 to
5,00,000
- 10% of the amount exceeding 1,90,000
5,00,000 to
8,00,000
- Rs.31,000 + 20% of the amount exceeding 5,00,000
8,00,000 &
above
- Rs.91,000 + 30% of the amount exceeding 8,00,000
III TAX RATES FOR INDIVIDUAL RESIDENTS AGED 60
YRS AND ABOVE & BELOW 80 YEARS (SENIOR CITIZEN)
Upto
2,50,000
- Nil
2,50,000 to
5,00,000
- 10% of the amount exceeding 2,50,000
5,00,000 to
8,00,000
- Rs.25,000 + 20% of the amount exceeding 5,00,000
8,00,000 &
above
- Rs.85,000 + 30% of the amount exceeding 8,00,000
IV TAX RATES FOR INDIVIDUAL RESIDENTS AGED 80
YRS AND ABOVE (VERY SENIOR CITIZEN)
Upto
5,00,000
- Nil
5,00,000 to
8,00,000
- 20% of the amount exceeding 5,00,000
8,00,000 &
above
- Rs.60,000 + 30% of the amount exceeding 8,00,000
There
is no surcharge in the case of every individual, Hindu undivided family,
Association of persons and body of individuals.
EDUCATION CESS
EXEMPTIONS/DEDUCTIONS
FROM SALARY
1. VOLUNTARY
RETIREMENT – 10(10C)
Amount received or receivable (ie.,in instalments) by an
employee on his voluntary retirement in accordance with any scheme of
Voluntary Retirement is exempt to the extent of Rs.5,00,000, provided the VRS
is in accordance with Rule 2BA of IT Rules. However no 89(1) relief can
be claimed.
2. HOUSE
RENT ALLOWANCE EXEMPT U/S.10(13A) – Read with Rule 2A of IT Rules 1962
a) Actual HRA
received
: Rs.xxxx
b) Rent paid in excess of 10% of
Salary
: Rs.xxxx
c) 50% of Salary in Metro Cities or
40% of Salary in other
cities
: Rs.xxxx
Least of a), b), c) is exempt.
NOTE : Here Salary means
Basic Salary as well as DA if the terms of employment so provide.According to the notification issued by the Income tax department, now landlord PAN card is must to get tax exemption against HRA allowance. One will have to submit PAN card as a proof if he is applying for more than 15000 per month.read here.
3.
CONVEYANCE ALLOWANCE : Any
allowance granted to meet the expenditure incurred wholly, necessarily and
exclusively on conveyance in performance of the duties of office and so
certified by the employer is exempt u/s.10(14).
4.
TRANSPORT ALLOWANCE : Any allowance
granted to an employee to meet the expenditure for the purpose of commuting
between the place of his residence and the place of his duty to the extent
upto Rs.800/- per month is exempt u/s.10(14).
5.
MEDICAL REIMBURSEMENT : An amount of Rs.15,000
or the actual amount reimbursed by the employer whichever is less is
exempt u/s.17(2).
DEDUCTIONS FROM HOUSE PROPERTY
1. DEDUCTION
U/S.23(1) : For
let out property, amount actually paid by the owner towards taxes levied by
any local authority in respect of the property is deductible from Annual
value(taxes pertaining to any previous years).
2. DEDUCTION
U/S.24(a) : For
let out property, deduction of 30% of the Net Annual Value is allowed.
No separate deduction for Repairs, Collection Charges, Insurance Premium,
Annual Charge and Ground Rent.
3. INTEREST ON BORROWED LOAN(U/S.24(b)):
a.
If Property is acquired or constructed with loan taken after 01/04/99 and
construction is completed within 3 years from the end of the financial year
in which the capital was borrowed – Rs.1,50,000 or actual interest
paid/payable whichever is less is deductible.
b. If new housing loan is taken for repayment of old loan (old
loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable
whichever is less is allowed as deduction.
c. If Property is acquired or constructed with loan taken before
01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is
allowed as deduction.
d. If loan taken for Repairs, renewal, reconstruction of
property, Rs.30,000 or actual interest paid/payable which ever is less is
allowed as deduction.
FOR
LET OUT PROPERTY, actual
interest paid/payable can be claimed as deduction.
ONLY OWNER OF THE HOUSE PROPERTY
CAN AVAIL THE ABOVE DEDUCTIONS.
CAPITAL GAINS:
With
effect from 01/10/2004, Long Term Capital Gains arising on sale of equity
shares or unit of equity oriented fund through recognized stock exchange is
exempt if such transaction is chargeable to Securities Transaction Tax
(u/s.10(38)).
Short
Term Capital Gains arising on sale of equity shares or unit of equity
oriented fund through recognized stock exchange is subject to tax at the rate
of 15% if such transaction is chargeable to Securities Transaction Tax.
The
Capital Gain arising out of sale of long term capital asset can be invested
in National Highways Authority of India, Rural Electrification
Corporation Limited, within six months from the date of sale subject to a
ceiling of Rs.50 lakh during any financial year. (Lock-in period is 3 years)
Cost Inflation Index for the F.Y.2011-12 is 785.
check exemption 54,54b,54ec,54f at a glance
Long Term Capital Gain - Exemption
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|
|
|
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a.
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Who can claim exemption
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Ind/HUF
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Individual
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Any person
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Ind/HUF
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b.
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Eligible assets sold
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A residential
House property
(minimum holding period 3 year)
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Agriculture land which has been used by assessee himself or by his parents for agriculture purposes during last 2 yrs of transfer
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Any long-term capital assets (minimum holding period 3 years)
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Any long term asset (other than a residential house property ) provided on the date of transfer the taxpayer does not own more than one residential house property from the assessment year 2001-02 (except the new house)
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c.
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Assets to be acquired for exemption
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Residential house property
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Another agriculture land
(urban or rural)
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Bond of NHAI or
REC
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Residential house property
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d.
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Time limit for acquiring the new assets
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Purchase :1 year back or
2 y e a r f o r w a r d , Construction: 3 year forward
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2 yrs forward
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6 months forward
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Purchase :1 year back or 2 year forward, Construction:
3 year forward
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e.
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Exemption Amount
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Investment in the new assets or capital gain, which ever is lower
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Investment in
the agriculture land or capital gain, which ever is lower
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Investment in the new assets or capital gain, which ever is lower (Max. Rs. 50
Lacs in Fin. Yr.)
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Investment in the new assets / Net
Sale consideration X capital gain
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f.
|
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Yes
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Yes
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not applicable
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Yes
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Set off and carry forward of losses at a glance
CARRY FORWARD & SET -OFF OF LOSSES:
|
Set-off
During the year
|
Carry Forward & Set - off Next year(s)
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|
Same
Head
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Another head
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Against
|
C/F
|
Years
|
Agst Profits From
|
|
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Yes
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Yes
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-
|
Yes
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8 years
|
same head
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2. Speculation Business
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Yes
|
No
|
From Speculation
Profits
|
Yes
|
4 years
|
Same/ another
Speculation Business
|
Unabsorbed Depreciation / Cap Exp on SR/FP
|
Yes
|
Yes
|
any
income
|
Yes
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No limit
|
any income
(other than salary)
|
Non-speculative Business or Profession
|
Yes
|
Yes (except salary)
|
|
Yes
|
8 years
|
same head
|
|
|
Yes
|
No
|
LTCG
|
Yes
|
8 years
|
LTCG
|
Short Term Capital Losses
|
Yes
|
No
|
STCG/LTCG
|
Yes
|
8 years
|
STCG/LTCG
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4. Owning / Maintaining race horses
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Yes
|
No
|
same item
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Yes
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4 years
|
same item
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5. Income from Other Sources (except if exempt)
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Yes
|
Yes
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NA
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No
|
NA
|
NA
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6. Specified Business u/s 35AD
|
Yes
|
No
|
Specified Business
Profits
|
Yes
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No Limit
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STANDARD DEDUCTION FOR FAMILY
PENSION U/S.57(iia):
An
amount of Rs.15,000 or 33&1/3% of family pension whichever is less is
allowed as deduction. If an assessee receives arrears of family pension, then
Relief u/s.89(1) can be claimed by him.
Family Pension received by the widow or children or nominated heirs, as the
case may be, of a member of the armed forces(including para-military forces)
of the union, where the death of such member has occurred in the course of
operation is exempt.
EXEMPTIONS – OTHER SOURCES
Any income by way of Dividends from
company, Income received in respect of units from the Unit Trust of India,
Income received in respect of the units of a mutual fund are exempt.
DEDUCTIONS FROM GROSS TOTAL INCOME
(CHAPTER VIA):
Sl.No.
|
I.T.
Sec.
|
Nature
of Deduction
|
Amount
of deduction
|
1.
a.
b.
c.
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80
CCC
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Limit
on Deduction u/s.80C, 80CCC &
80CCD
Life Insurance Premia, PF, PPF, NSC, ELSS, Units of Mutual Fund referred to
u/s.10(23D), Tuition Fees(max. 2 Children), Repayment of Principal of
Housing loan, Bank Fixed Deposit of 5 yrs period, notified Bonds of NABARD,
Deposit in an account under Senior Citizens Savings Scheme rules, 5 year
time deposit in an account under Post Office Time Deposit Rules, 1981 etc.
Premium paid towards approved Pension Fund (like LIC’s Jeevan Suraksha)
max. 1 lakh.
Contribution to Central Government Pension Schemes. Upto 10% of salary with
matching contribution from
Government.
|
Maximum
overall
Deductions
allowed u/s. 80C,
80CCC & 80CCD
|
2.
|
|
Amount
paid/deposited as subscription to long-term infrastructure bonds being
notified by the Central Government.
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Rs. 20,000
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3.
|
|
(a)
Medical Insurance Premium paid by an individual/HUF by any mode of payment
other than cash to effect or keep in force an insurance on the health of
the assessee(self) or his family(spouse & dependent children) for
policies taken from General Insurance Corporation /other approved Insurance
Regulatory and Development Authority or any contribution made to the Central
Government Health Scheme.
(b)
Medical Insurance Premium paid by an individual/HUF by any mode of payment
other than cash to effect or keep in force an insurance on the health of
his/her parent or parents for policies taken from General Insurance
Corporation /other approved Insurance Regulatory and Development Authority
or any contribution made to the Central Government Health Scheme.
(c)
For Senior Citizens
|
Upto Rs.15,000
Upto Rs.15,000
Upto Rs.20,000
|
3.
|
|
(a)
Any expenditure for Medical, Nursing & Rehabilitation incurred on
dependant suffering from permanent disability including blindness, mental
retardation, autism, cerebral palsy or multiple disabilities
(b) Deposits under LIC, UTI’s Scheme & other IRDA approved insurers for
the benefit of physically handicapped dependent
|
Rs.50,000 (Rs.1,00,000 if the
disability is severe exceeding 80%)
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4.
|
|
(a)
Actual expenditure incurred on Medical treatment of Self or dependant or a
member of HUF suffering from terminal diseases like Cancer, AIDS, Renal
failure etc.
(b)
For Senior Citizens(self or dependent on whom expenditure on medical
treated is taken)
|
Upto Rs.40,000
Upto Rs.60,000
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5.
|
|
Interest
on loan taken from Financial/Charitable Institutions for
Self/Spouse/Children for pursuing Higher Education (for a max. period of 8
yrs)
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Actual Interest repaid
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6.
|
|
(a)
Donations made to National Defence Fund, Prime Minister’s Relief Fund,
approved Funds of reputed Educational Institutions, National Trust for
Welfare of persons with Autism, Cerebral Palsy etc.
(b)
Donations made to Jawaharlal Memorial Fund, PM’s Drought Relief fund, Any
approved Charitable Institution/Trust, Religious Institutions, a
corporation established by the Government for promoting interest of the
members of a Minority Community
|
100% of Donation
50% of Donation restricted to
10% of Adjusted Gross Total Income
|
7.
|
|
Deduction
in respect of rents paid, provided the assessee is not in receipt of HRA
and no house is owned by self, spouse, minor child or HUF in the place of
work subject to filing of declaration in Form No.10BA
|
25% of income
or rent paid in excess of 10% of income
or ceiling of Rs.24,000 p.a whichever is less
|
8.
|
80
U
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Persons
suffering from Permanent Physical Disability as specified in Rule 11D
|
Rs.50,000 (Rs.1,00,000 in case
of severe disability)
|
INTEREST U/S.234A: Where in any financial year, the
return of Income of any assessment year u/s.139(1) or 139(4) or in response
to a notice u/s.142(1), is furnished after the due date as specified in
sub-section 1 of section 139, or is not furnished, the assessee shall be
liable to pay simple interest at the rate of one percent for every month or
part of a month comprised in the period commencing on the date immediately
following the due date.
INTEREST U/S.234B: Where an assessee who is liable to
pay advance tax(where tax liability exceeds Rs.10,000 after TDS) under
section 208 has failed to pay such tax or, where the advance tax paid by such
assessee under the provisions of section 210 is less than 90% of the assessed
tax, the assessee shall be liable to pay simple interest at the rate of one
percent for every month or part of a month comprised in the period from the
1st day of April following the financial year.
INTEREST U/S.234C: Where an assessee other than a
Company, who is liable to pay advance tax (where tax liability exceeds
Rs.10,000 after TDS)under section 208 has failed to pay such tax or,
1) The advance tax paid by the assessee on his
current income on or before the 15th day of September is less than 30% of the
tax due on the returned income or the amount of such advance tax paid on or
before the 15th day of December is less than 60% of the tax due on the
returned income, then, the assessee shall be liable to pay simple interest at
the rate of one percent per month for a period of three months on the amount
of the shortfall from 30% or, as the case may be, 60% of the tax due on the
returned income.
2) The advance tax paid by the assessee on his
current income on or before the 15th day of March is less than the tax due on
the returned income, then, the assessee shall be liable to pay simple
interest at the rate of one percent on the amount of the shortfall from the
tax due on the returned income.
DUE DATES FOR FILING RETURN OF
INCOME : All
Individuals/HUF/Firms deriving Income from Salary, House Property, Capital
Gains, Business or Other Sources and not covered under section 44AB are
required to file the Return of Income by 31st July of the assessment year.
All Tax Audit Cases covered under section 44AB & Companies are
required to file the Return of Income by 30th September of the
assessment year. In the case of an assessee being a company, which is
required to furnish a report referred to in section 92E(Transfer Pricing),
the due date is 30th November of the assessment year.
MODE OF FILING INCOME-TAX RETURNS
: All
Individuals, HUFs & Partnership Firms who are required to get their
accounts audited u/s.44AB are required to compulsorily file their income-tax
return electronically with digital signature. All companies are also
required to compulsorily file their income tax return electronically with
Digital signature.
Return up to 5 Lakh income is exempted subject to few conditions.
PERMANENT ACCOUNT NUMBER: Every person who is required to
furnish a return of income u/s.139 is required to obtain 10 Alpha numeric
Permanent Account Number (PAN) and quote the same in his returns, challans
& correspondence. PAN can be obtained by applying in new Form No.49A
at the designated Service Centres of UTITSL OR NSDL(Log on to our
website). PAN is essential for processing the Return of Income and for
giving credit for taxes paid. If a person who is required to quote his
Permanent Account Number fails to do so or intimates or quotes false number
which he either knows or believes to be false or does not believe to be true,
the Assessing Officer may direct that such person shall pay, by way of
penalty, a sum of Rs.10,000.(S.272B)
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