Rate of Tax
*Minimum Exemption LimitIndl&HUF-1.6lacs ResiWomen-1.9lacs ResiSeniorCtzn-2.4lacs
Upto 5Lac-10%
Upto 8Lac-20%
Above 8Lac-30%
*Surchrge:only for domestic company7.5%of TI & foreign company2.5% of TI if total income EXCEEDS 1crore
*Taxable LTCG 20%
*STCG on Securities subject to SST 15%
*Lottery Winning,Horse Races etc 30%
*Cost Inflation Index-711
INCOME TAX
*Rate of MAT u/s115JB is increased from 15% to 18%
*Marginal Relief is allowed to Domestic & Foreign Company
WEALTH TAX
*Wealth Tax@1% on taxable Net wealth in excess of Rs.30 Lac
*Wealth Tax@1% on taxable Net wealth in excess of Rs.30 Lac
Total Income of NR
Explanation to Sec9(2) is substituted with retrospective effect from 01.06.1976
Now,in case of NON-RESIDENT,income by way of fees for Technical Services,Interest and royalty, from services UTILISED in INDIA will be included in his Total Income.Now it is not relevant that whether the services are rendered in India or not.
Now,in case of NON-RESIDENT,income by way of fees for Technical Services,Interest and royalty, from services UTILISED in INDIA will be included in his Total Income.Now it is not relevant that whether the services are rendered in India or not.
Scope of Definition of Charitable Purpose[Sec.2(15)]
Now "Advancement of any other object of general public utility" wud continue 2b a "Charitable Purpose", if Total Receipts from any activity in the nature of Trade,Commerce,Business(TCB)or any activity of rendering any service in relation to TCB, does not exceeds Rs.10lacs in P.Y.
Increase in limit for attracting TDS
Increase in limits for attracting TDS
Sec.-Nature-limit upto30.06.2010-New limit w.e.f.01.07.2010
194B-Lottery Winnings etc.-5000-10000
194BB-Winning from HorseRace-2500-5000
194C-detail in next sms
194D-Insurance Commission-5000-20000
194H-Commission/Brokerage-2500-5000
194I-Rent-120000-180000
194J-detail in next sms
Sec.-Nature-limit upto30.06.2010-New limit w.e.f.01.07.2010
194B-Lottery Winnings etc.-5000-10000
194BB-Winning from HorseRace-2500-5000
194C-detail in next sms
194D-Insurance Commission-5000-20000
194H-Commission/Brokerage-2500-5000
194I-Rent-120000-180000
194J-detail in next sms
194C-Payment to contractor for a single transaction
*upto30.06.2010-20000
*after1.7.2010-30000
Aggregate Limit has been raised from50000 to75000.
e.g.Pmt to Contractor
on 1.5.2010=15000
on 1.8.2010=25000
on 1.12.2010=30000
Pmt due on 1.3.2010=28000
Ans:No TDS upto1.12.2010 but TDS on 98000 from last pmt of 28000
194J-Payment of
*Fees for ProfessionalServices
*Fees for TechnicalServices
*Royalty or non-compete fees referred to in Sec28(va)
>upto30.06.2010-20000
>after01.07.2010-30000
U/s194J,above Limit is applicable SEPARATELY FOR EACH.
e.g.Pmt to Mr.Ad on2.8.2010,fee for Prof services 28000&for Tech services25000
Ans.TDS=NIL
TDS/TCS Certificate.
Sec203 & 206C(5)Now, considering the importance of TDS/TCS Certificate, Deductor/collector would continue to furnish the TDS/TCS Certificate to Deuctee/Collectee even after 1.4.2010
Now, CIT is also empowered to cancel Regn of sec12A
Sec 12AA(3)
Now, Commissioner of income tax is also empowered cancel registration obtained u/s12A.
Thus, now CIT is having power of cancellation of registration of both 12A & 12AA.
*Sec35(1)(ii) Amount paid to Approved Research Association,university,college,institutions of SCIENTIFIC RESEARCH-Increase from 125% to175%
*Sec35(2AA) Amount paid to National Lab,University,an IIT or specified person for Approved Scientific Research Program-Increase from 125% to175%
*Sec35(2AB) Exp on Scientific Research (Otherthan exp on Land&Bldng)on IN-HOUSE R&D facility incurred by a COMPANY-Increase from 150% to200%
Ques.
SHAYVIDZ Aqua Ltd. furnishes following particulars for the P.Y.2010-11
A.Payment for Scientific Research
1.Indian Institute of Science,Bangalore-1L
2.IIT,Delhi-2.5L
3.X Ltd.-4L
B.Expenditure on in-house R&D Facility - Revenue exp 3L & Cap Exp(Including land of 5L) 7.50L
Ans.
A.
1.u/s35(1)(ii)175%
2.u/s35(2AA)175%
3.u/s35(1)(iia)125%
B. u/s35(2AB)
Rev Exp 200% of 3L &
Cap Exp 200% of 2.5L
Total deduction allowable u/s35 for A.Y.2011-12 = 22,12,500
Capital Exp Rs.50L (Jan2010toMar2010)& capitalized it.
In P.Y.2010-11,Capital Exp Rs.200L(inclusive of Rs.150L for acquisition of Land)
Compute deduction u/s35AD assuming that no Deduction claimed under chapter VI-A
Ans.CapExp(200L-150L)=50L
CapExp incurrd prior to1.4.2010(i.e.prior to commencemnt of business)& capitalized it=50L
Total deductn u/s35AD=100L
Sec44AD - Now it covers all businesses with Total Turnover/Gross Receipts upto Rs.60L & 8% of total turnover/gross recpt wud b the business income.
Sec271B-In case of failure to get a/c audited&Report filed,
Penalty =0.5%of turnover/gross recpt OR Rs.1.50Lacs whichever is less
Sec56(2)(vii)-Now,transfer of IMMOVABLE PROPERTY for INADEQUATE Consideratn wud always b outside the ambit of 56(2)(vii)
So,nowSec56(2)(vii)will cover
1.Trf ofIMMOVABLE PROPERTY- WITHOUT CONSIDERATION if Stamp Value exceeds Rs50000
2.Trf ofMOVABLE PROPERTY-
*WITHOUT CONSIDERATION whr FMV exceeds Rs50000 *INADEQUATE CONSIDERATION whr FMV less Sale Consideratn exceeds Rs50000
[W.e.f.1.10.2009]
Mr.AD,a dealer in shares,recvd WITHOUT Consideration frm his friend Ms.DA-
1.Cash-75000 on Annivrsry 7.1.2011
2.Bullion,FMV-60000 on Bday 19.06.2010
3.Land on 1.7.2010,Stamp Value on that date-5Lacs. Mr.B purchased land inApril2005
Mr.AD purchased,from Mr.AK share broker,1000shares of SABC Ltd@400/-each on19.06.2010,FMV of which was600/-each on that date. Mr.AD sold it in course of his business on23.06.2010
On1.11.2010,Mr.AD took possession of Flat booked 2yrs back@20Lac.Stamp Value of property on1.11.2010 is 32Lacs.
On1.3.2011,he sold the land for 7Lac
Compute IOS &Capital Gain for AY2011-12.
2.Sec80D MediclaimPolicy or contri to C.GovtHealthScheme
*Self,spouse,dependent children(aggregt):15000
*Parents(independnt/dependnt):15000,SeniorCitizen:20000
3.Sec80-IB(10) Relaxation of Condition for Housing Project approved ONLY on or after1.4.2005
*Earlier, max allowed built-up area for shop/commercial establishment included in housing project was 5%of total built-up area or 2000Sqft whichever is LOWER.
But Now 3%or 5000sqft whichever is HIGHER
*Time limit of completion of Housing Project, now extended from 4yrs to5yrs
[This is an eligible deduction of 100%of profit from such project which are approvd before31.3.2008]
4.Sec80-ID Extension of terminal date for functioning of Hotel & Construction of Convention Centres from31.3.2010to31.07.2010
*5yrs tax holiday to New 2,3,4star & convention centre set up in National Capital Region in view of COMMONWEALTH GAMES in October2010
*Now,It should start functioning from1.4.2007to31.7.2010
Now, Commissioner of income tax is also empowered cancel registration obtained u/s12A.
Thus, now CIT is having power of cancellation of registration of both 12A & 12AA.
PROFIT & GAIN FROM BUSINESS OR PROFESSION
Now weighted deduction also available to approved ASSOCIATIONS u/s 35(1)(iii)
Sec35(1)(iii)125% weighted deduction of sum paid to approved/notified university,college,or other institution of object of research in SOCIAL SCIENCE/STATISTICAL RESEARCH. Earlier Approved Research ASSOCIATIONS of Social/Statistical Research were not included,bt now FA2010 includes Such ASSOCIATIONS u/s35(1)(iii)
Inclusion of Research ASSOCIATIONS in Sec35(1)(iii)..Related amendment in
*Sec10(21)for exemptn of income of such ASSOCIATIONS
*80GGA forDeductn ofDonations made to such ASSOCIATIONS
*139(4C)for requirement of filing ROI if their TI before giving exemptn u/s10 exceeds basic exemptn limit
*143(3)for considering exemptn of Sec10,b4 Assessment Order.But AO may pass assessment order without giving exemption of sec10 if prescribed conditions r not satisfied by such ASSOCIATIONS
*Sec10(21)for exemptn of income of such ASSOCIATIONS
*80GGA forDeductn ofDonations made to such ASSOCIATIONS
*139(4C)for requirement of filing ROI if their TI before giving exemptn u/s10 exceeds basic exemptn limit
*143(3)for considering exemptn of Sec10,b4 Assessment Order.But AO may pass assessment order without giving exemption of sec10 if prescribed conditions r not satisfied by such ASSOCIATIONS
Substantial Increase in % of Weighted Deduction u/s35
*Sec35(1)(ii) Amount paid to Approved Research Association,university,college,institutions of SCIENTIFIC RESEARCH-Increase from 125% to175%
*Sec35(2AA) Amount paid to National Lab,University,an IIT or specified person for Approved Scientific Research Program-Increase from 125% to175%
*Sec35(2AB) Exp on Scientific Research (Otherthan exp on Land&Bldng)on IN-HOUSE R&D facility incurred by a COMPANY-Increase from 150% to200%
Example on Section 35
Ques.
SHAYVIDZ Aqua Ltd. furnishes following particulars for the P.Y.2010-11
A.Payment for Scientific Research
1.Indian Institute of Science,Bangalore-1L
2.IIT,Delhi-2.5L
3.X Ltd.-4L
B.Expenditure on in-house R&D Facility - Revenue exp 3L & Cap Exp(Including land of 5L) 7.50L
Ans.
A.
1.u/s35(1)(ii)175%
2.u/s35(2AA)175%
3.u/s35(1)(iia)125%
B. u/s35(2AB)
Rev Exp 200% of 3L &
Cap Exp 200% of 2.5L
Total deduction allowable u/s35 for A.Y.2011-12 = 22,12,500
Sec35AD - "Specified Business" expanded for "Investment-linked Tax Incentives"
*Last yr-1. Cold Chain facility
2. Warehousing facility
3. Operating Cross-country natural gas/crude/petroleum oil pipeline netwrk
*Addition inFA2010-4.NEW hotel ofTWO-STAR or above in India
5.NEW hospital in India with atleast100beds for patients
6.Developing/building HOUSING PROJECT forSLUM Redevelopmnt/rehabitation under scheme of CG/SG&Notified byCBDT
if OPERATIONS are COMMENCED on or after 1.4.2010Sec35AD - Change in Condition of "Specified Business"
Amendment in Condition for Specified Business No.3
– must have made available the PRESCRIBED CAPACITY for USE on COMMON CARRIER BASIS any person otherthan assessee or its associated person. PRESCRIBED CAPACITY by Regulations of Petroleum & Natural Gas Regulatory Board is –
1.atleast One-third for Natural Gas
2.atleast One-fourth for Petroleum Product
Sec35AD - "Specified Business" expanded for "Investment-linked Tax Incentives"..Related amendment in Sec80A....
Once assessee has claimed benefit of deduction u/s35AD for a particular year in respect of specified business, he cannot claim benefit under Chapter VI-A for the SAME OR ANY OTHER YEAR and VICE-VERSA
Example on Sec35AD
Que.SHAYVIDZ Aqua Ltd commenced operation of business of a New3star hotel on1.4.2010.Capital Exp Rs.50L (Jan2010toMar2010)& capitalized it.
In P.Y.2010-11,Capital Exp Rs.200L(inclusive of Rs.150L for acquisition of Land)
Compute deduction u/s35AD assuming that no Deduction claimed under chapter VI-A
Ans.CapExp(200L-150L)=50L
CapExp incurrd prior to1.4.2010(i.e.prior to commencemnt of business)& capitalized it=50L
Total deductn u/s35AD=100L
Sec. 40(a)(ia) ExtentedTime Limit for depositing TDS
*Earlier,specified pymnt was disallowed if No TDS or after deduction it had not been paid as below:
April to Fab-on or b4 31st March
March-on or b4 due date u/s139(1) i.e.31st July/31st Sep
**Amendment-New scheme
+Tax is reqd 2b deducted in P.Y.
+Time Limit 4 deposit of Deducted Tax :April to March (i.e. entire year) - on or b4 due date u/s139(1) i.e.31st July/31st Sep
+ if deducted tax is deposited after due dt,then it wud b allowed in Year of Payment
April to Fab-on or b4 31st March
March-on or b4 due date u/s139(1) i.e.31st July/31st Sep
**Amendment-New scheme
+Tax is reqd 2b deducted in P.Y.
+Time Limit 4 deposit of Deducted Tax :April to March (i.e. entire year) - on or b4 due date u/s139(1) i.e.31st July/31st Sep
+ if deducted tax is deposited after due dt,then it wud b allowed in Year of Payment
Example on Sec 40(a)(ia)
If Tax deducted on Royalty paid to Mr.AD,a resident,during PY2010-11at any time between April2010to March2011&deposited by31st July/31st Sep,then SUCH EXPENDITURE (here,Royalty) wud b allowed as deduction in PY2010-11(A.Y.2011-12)
Sec 40(a)(ia).. Related amendment in Sec201(1)
Earlier,Simple Intt was payable @1%p.m. in both the failure i.e. failure
1.to deduct tax
2.to deposit aftr deductn
Now by amendment,Intt rate has been changed:
1.failure to deduct-1%pm
2.failure to deposit aftr deductn- 1.5%pm
Example
Q.On1.7.2010-Rs.40000 paid without TDS.
On28.2.2011-Rs-50000 paid & TDS@10% Rs.9000 and deposited it on 22.6.2011.Compute intt u/s201(1)
Ans.1%on 4000 for 8Months
&1.5%on 9000 for 4months
=Total860/-
1.to deduct tax
2.to deposit aftr deductn
Now by amendment,Intt rate has been changed:
1.failure to deduct-1%pm
2.failure to deposit aftr deductn- 1.5%pm
Example
Q.On1.7.2010-Rs.40000 paid without TDS.
On28.2.2011-Rs-50000 paid & TDS@10% Rs.9000 and deposited it on 22.6.2011.Compute intt u/s201(1)
Ans.1%on 4000 for 8Months
&1.5%on 9000 for 4months
=Total860/-
Sec44AB - Increase in Threshold Limit for applicability of Tax Audit
Threshold Limit of Turnover/Gross Receipt for applicability of Tax Audit u/s 44AB has been increased
from Rs.40Lacs to Rs.60Lacs for Business
&
from Rs.10Lacs to Rs.15 Lacs for Profession
from Rs.40Lacs to Rs.60Lacs for Business
&
from Rs.10Lacs to Rs.15 Lacs for Profession
Sec.44AB.. Related amendments in Sec.44AD & Sec.271B..
Sec44AD - Now it covers all businesses with Total Turnover/Gross Receipts upto Rs.60L & 8% of total turnover/gross recpt wud b the business income.
Sec271B-In case of failure to get a/c audited&Report filed,
Penalty =0.5%of turnover/gross recpt OR Rs.1.50Lacs whichever is less
Sec44BB & Sec44DA - Tax treatment of Income of NR providing services or facilities for extraction or production of Mineral Oil
*Now,if INCOME of NR is IN THE NATURE OF fee for technical services,it shall b taxable either u/s44DA or115A IRRESPECTIVE OF BUSINESS to which it relates.
*Sec44BB wud apply only in case where consideration is for services&other facilities relating to MINERAL OIL exploration,extraction,productn activities WHICH ARE NOT IN THE NATURE of tech services.
*Sec44BB wud apply only in case where consideration is for services&other facilities relating to MINERAL OIL exploration,extraction,productn activities WHICH ARE NOT IN THE NATURE of tech services.
Sec47(xiiib) inserted-Conversion of Small Pvt Companies &Unlisted public companies into LLPs 2b EXEMPT FROM CAPITALGAINTAX subjct to FULFILLMENT OF CERTAIN CONDITIONS..
CAPITAL GAIN
only 1 bt Biggest&Very imp Amendmnt(for May2011 exam)
i.e.Sec47(xiiib) inserted-Conversion of Small Pvt Companies &Unlisted public companies into LLPs 2b EXEMPT FROM CAPITALGAINTAX subjct to FULFILLMENT OF CERTAIN CONDITIONS.
Related amendmnt in Sec.47A(4),72A,115JAA,32(1),43(6),49(1),49(2AAA),43(1)&35DDA
only 1 bt Biggest&Very imp Amendmnt(for May2011 exam)
i.e.Sec47(xiiib) inserted-Conversion of Small Pvt Companies &Unlisted public companies into LLPs 2b EXEMPT FROM CAPITALGAINTAX subjct to FULFILLMENT OF CERTAIN CONDITIONS.
Related amendmnt in Sec.47A(4),72A,115JAA,32(1),43(6),49(1),49(2AAA),43(1)&35DDA
Admin's Announcement
Dear Members!
*Its not practically possible for us to send the biggest amendment in CapitalGainTax exemption in respect of LLP through SMS.
So,we will post it in detail (with example question)in our blog after completing all the amendments of IncomeTax.
*We are expecting a question of 6-8marks from this provision of LLP in this May2011 exams.So,plz dont skip these amendment.
Admin
*Its not practically possible for us to send the biggest amendment in CapitalGainTax exemption in respect of LLP through SMS.
So,we will post it in detail (with example question)in our blog after completing all the amendments of IncomeTax.
*We are expecting a question of 6-8marks from this provision of LLP in this May2011 exams.So,plz dont skip these amendment.
Admin
Transfer of IMMOVABLE PROPERTY for INADEQUATE Consideratn wud always b outside the ambit of Sec.56(2)(vii)..
Income from Other SourcesSec56(2)(vii)-Now,transfer of IMMOVABLE PROPERTY for INADEQUATE Consideratn wud always b outside the ambit of 56(2)(vii)
So,nowSec56(2)(vii)will cover
1.Trf ofIMMOVABLE PROPERTY- WITHOUT CONSIDERATION if Stamp Value exceeds Rs50000
2.Trf ofMOVABLE PROPERTY-
*WITHOUT CONSIDERATION whr FMV exceeds Rs50000 *INADEQUATE CONSIDERATION whr FMV less Sale Consideratn exceeds Rs50000
[W.e.f.1.10.2009]
Amendment in Definition of Property for the purpose of Sec56(2)(vii)
*Definition of Property for Sec56(2)(vii) amended:-
1.Property=Only capital assets ¬ stock-in-trade,RawMaterial&consumable stores of business of recipient
2.Now,Bullion has also been included in movable property w.e.f. frm1.6.2010
*Sec142A(1)w.e.f.1.7.2010,A.O. can make reference to valuation officer forFMV for56(2)
1.Property=Only capital assets ¬ stock-in-trade,RawMaterial&consumable stores of business of recipient
2.Now,Bullion has also been included in movable property w.e.f. frm1.6.2010
*Sec142A(1)w.e.f.1.7.2010,A.O. can make reference to valuation officer forFMV for56(2)
Example on Sec 56(2)(vii)
Mr.AD,a dealer in shares,recvd WITHOUT Consideration frm his friend Ms.DA-
1.Cash-75000 on Annivrsry 7.1.2011
2.Bullion,FMV-60000 on Bday 19.06.2010
3.Land on 1.7.2010,Stamp Value on that date-5Lacs. Mr.B purchased land inApril2005
Mr.AD purchased,from Mr.AK share broker,1000shares of SABC Ltd@400/-each on19.06.2010,FMV of which was600/-each on that date. Mr.AD sold it in course of his business on23.06.2010
On1.11.2010,Mr.AD took possession of Flat booked 2yrs back@20Lac.Stamp Value of property on1.11.2010 is 32Lacs.
On1.3.2011,he sold the land for 7Lac
Compute IOS &Capital Gain for AY2011-12.
Ans.
IOS
1.CashGift-Taxable75000
2.Bullion(w.e.f.1.6.2010if FMV>50000)Taxable60000
3.StampValue ofLand(WITHOUT Consideratn)Taxable500000
4.Difference of 2lacs not taxable coz shares are stock-in-trade for Mr.AD
5.Appreciation in value of immovable property between time of its booking & its actual regn is outside the scope of Sec56(2)(vii)
Total IOS=635000
CAPITAL GAIN
Sale Consideration7L - COA5L = STCG 2Lacs
Period of holding of previous owner is not to be considered.
IOS
1.CashGift-Taxable75000
2.Bullion(w.e.f.1.6.2010if FMV>50000)Taxable60000
3.StampValue ofLand(WITHOUT Consideratn)Taxable500000
4.Difference of 2lacs not taxable coz shares are stock-in-trade for Mr.AD
5.Appreciation in value of immovable property between time of its booking & its actual regn is outside the scope of Sec56(2)(vii)
Total IOS=635000
CAPITAL GAIN
Sale Consideration7L - COA5L = STCG 2Lacs
Period of holding of previous owner is not to be considered.
Newly inserted Sec 56(2)(viia) & Related amendments..
NewSec56(2)(viia)
Trf of shares without/inadequate consideratn to attract provision of 56(2)in case of recipient FIRM & COMPANIES also if FMV or DIFFERENCE exceed 50000
Exceptions to 56(2)(viia)-Trf of shares OF/TO a public company
ExemptedTransactions:47(via),(vic),(vicb),(vid),(vii)
RelatedAmendments
*Sec2(24)Definition of Income now include money/property ofSec56(2)(vii)&(viia)
*Sec49(4)forCapitalGain on trf of assets of 56(2)(vii)&(viia), COA=Value tkn in (vii)&(viia)
Trf of shares without/inadequate consideratn to attract provision of 56(2)in case of recipient FIRM & COMPANIES also if FMV or DIFFERENCE exceed 50000
Exceptions to 56(2)(viia)-Trf of shares OF/TO a public company
ExemptedTransactions:47(via),(vic),(vicb),(vid),(vii)
RelatedAmendments
*Sec2(24)Definition of Income now include money/property ofSec56(2)(vii)&(viia)
*Sec49(4)forCapitalGain on trf of assets of 56(2)(vii)&(viia), COA=Value tkn in (vii)&(viia)
Deductions from Gross Total Income
*Deduction from GTI
1.New ADDITIONAL Deduction(to INDIVIDUALS&HUF Only)u/s80CCF of Rs.20000(SEPARATE frm limit of Rs.1Lac u/s80CCE)for Investment in Notified LONG-TERM INFRASTRUCTURE BONDS.
1.New ADDITIONAL Deduction(to INDIVIDUALS&HUF Only)u/s80CCF of Rs.20000(SEPARATE frm limit of Rs.1Lac u/s80CCE)for Investment in Notified LONG-TERM INFRASTRUCTURE BONDS.
2.Sec80D MediclaimPolicy or contri to C.GovtHealthScheme
*Self,spouse,dependent children(aggregt):15000
*Parents(independnt/dependnt):15000,SeniorCitizen:20000
3.Sec80-IB(10) Relaxation of Condition for Housing Project approved ONLY on or after1.4.2005
*Earlier, max allowed built-up area for shop/commercial establishment included in housing project was 5%of total built-up area or 2000Sqft whichever is LOWER.
But Now 3%or 5000sqft whichever is HIGHER
*Time limit of completion of Housing Project, now extended from 4yrs to5yrs
[This is an eligible deduction of 100%of profit from such project which are approvd before31.3.2008]
4.Sec80-ID Extension of terminal date for functioning of Hotel & Construction of Convention Centres from31.3.2010to31.07.2010
*5yrs tax holiday to New 2,3,4star & convention centre set up in National Capital Region in view of COMMONWEALTH GAMES in October2010
*Now,It should start functioning from1.4.2007to31.7.2010
Computaion of Profit & Gain of Non-Life Insurance Business (Rule5 of 1st Schedule to IncomeTax Act
*Computaion ofProfit&Gain ofNon-Life InsuranceBusiness(Rule5of 1st Sch.to IncomeTaxAct)
Sec44r.w.Rule5-UnrealizedGain due2appreciation in value of investmnts wil nt b included in TI &UnrealizedLoss(i.e.Provision4diminution in value of investmnt)is not allowable as deductn
1.N/N 43/2010 - For purpose of Calculation of Exemption of Gratuity u/s10(10)
Max Limit upto23.05.2010=3.50Lacs
On or after24.05.2010=10Lacs
Sec44r.w.Rule5-UnrealizedGain due2appreciation in value of investmnts wil nt b included in TI &UnrealizedLoss(i.e.Provision4diminution in value of investmnt)is not allowable as deductn
Sec.143(1B) Time Limit extended for issue of Notifications in respect of Centralised Processing of Returns
ASSESSMENT PROCEDURE
Centralised Processing Centre (CPC) has been set-up at Bangalore for centralised processing of ITR. Now Central Government can issue notification upto 31.03.2011 to relax, modify or adopt any provision of law relating to processing of returns.
(effective from 1.4.2010)
Centralised Processing Centre (CPC) has been set-up at Bangalore for centralised processing of ITR. Now Central Government can issue notification upto 31.03.2011 to relax, modify or adopt any provision of law relating to processing of returns.
(effective from 1.4.2010)
Sec260A(2A) - High Court empowered to condone delay in filing of appeal
APPEALS
*Sec260A(2A) - High Court has & also had power to condone delay&admit appeal after expiry of 120days,if sufficient cause of delay (Retrospectv effect from1.10.1998)
*Same amendment in provision of Sec27A(1A)of WealthTaxAct,1957
*Sec260A(2A) - High Court has & also had power to condone delay&admit appeal after expiry of 120days,if sufficient cause of delay (Retrospectv effect from1.10.1998)
*Same amendment in provision of Sec27A(1A)of WealthTaxAct,1957
Sec282B - Extension of date for issue of Document Identification Number
*Sec282B The date for implementation of issue of Documentation Identification Number(DIN)on each correspondence has deen extended to1.7.2011
(w.e.f. 1.10.2010)
(w.e.f. 1.10.2010)
SETTLEMENT COMMISSION
For FINAL Students:
SETTLEMENT COMMISSION
(w.e.f.1.6.2010)
1.Sec.245(b)of I.TaxAct &Sec22A of WealthTaxAct
Now,CASE will INCLUDE any proceeding4assessment/re-assessmnt as a result ofSEARCH/REQUISITION
2.Sec245C of IT Act
Additional Amt ofTax payable on Income disclosed in application
*if CASE is of Assessmnt ofSearch/Requisitn)-EXCEEDS 50Lacs
*Other CASE-Addtn Amt EXCEEDS 10Lacs(earlier,3Lac)
3.Sec245(4A)of IT Act &Sec22D(4A) ofW.TaxAct
Now,TimeLimit forOrder-18Months
SETTLEMENT COMMISSION
(w.e.f.1.6.2010)
1.Sec.245(b)of I.TaxAct &Sec22A of WealthTaxAct
Now,CASE will INCLUDE any proceeding4assessment/re-assessmnt as a result ofSEARCH/REQUISITION
2.Sec245C of IT Act
Additional Amt ofTax payable on Income disclosed in application
*if CASE is of Assessmnt ofSearch/Requisitn)-EXCEEDS 50Lacs
*Other CASE-Addtn Amt EXCEEDS 10Lacs(earlier,3Lac)
3.Sec245(4A)of IT Act &Sec22D(4A) ofW.TaxAct
Now,TimeLimit forOrder-18Months
INCOME FROM SALARY - Notification No. 43/2010
INCOME FROM SALARY1.N/N 43/2010 - For purpose of Calculation of Exemption of Gratuity u/s10(10)
Max Limit upto23.05.2010=3.50Lacs
On or after24.05.2010=10Lacs
DEDUCTIONS FROM GROSS TOTAL INCOME - Notification No. 68/2010 & 48/2010
DEDUCTION from GTI
1.N/N 68/2010-Donation to ArcheryAssociation of India,New Delhi is eligible for dedctn u/s80G fromAY10-11 to12-13
2.N/N 48/2010-LongTerm Bond u/s80CCF,
*Eligible Issuer-IFCI, LIC, IDFC, NBFC(Infrastructure)
*Tenure of Bond-Min5yrs
*Minimum Lock-in-Period for Investor-5yrs(Hypothecation allowed)
1.N/N 68/2010-Donation to ArcheryAssociation of India,New Delhi is eligible for dedctn u/s80G fromAY10-11 to12-13
2.N/N 48/2010-LongTerm Bond u/s80CCF,
*Eligible Issuer-IFCI, LIC, IDFC, NBFC(Infrastructure)
*Tenure of Bond-Min5yrs
*Minimum Lock-in-Period for Investor-5yrs(Hypothecation allowed)
DOUBLE TAXATION AGREEMENT - Notification No.25/2010
Explanation 2 of Sec.90
Now Specified Territory will include Hong Kong Special Administrative Region of People\'s Republic of China.
Now Specified Territory will include Hong Kong Special Administrative Region of People\'s Republic of China.
