Applicable for AY 2010-11 (FY 2009-10)

FRIENDS,

NOW.........TIME IS SO LESS TO PREPARE........

I AM PRESENTING SOME SUMMARY POINT WHICH SURELY HELPS U TO PREPARE FOR TAX EXAMS.

THESE R AS FOLLOWS:

Change in the Tax Rate Slabs for Individuals

1. Individual - Male, Basic Limit Enhanced to 1,60,000 from 1,50,000
2. Individual - Female, Basic Limit Enhanced to 1,90,000  from 1,80,000
3. Senior Citizens, Basic Limit Enhanced to 2,40,000 from 2,25,000
4. Applicable for AY 2010-11 (FY 2009-10)

Surcharge

1. Surcharge of 10% has been waived off for Individual/HUF/Firm/AOP/BOI. No surcharge will be applicable.
2. Applicable for AY 2010-11 (FY 2009-10)

Section 80E

1. Earlier it was applicable only for Graduate / Post-Graduate, fulltime studies
2. Now all the studies after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.
3. Applicable for AY 2010-11 (FY 2009-10)

Section 80DD

1. Exemption was given for Expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/insurance paid towards maintenance of such dependant.
2. Such exemption was up to 50,000 in case of normal disability and 75,000, in case of severe disability.
3. This limit has been kept the same 50,000 in case of normal disability, but increased to Rs. 1 Lakh in case of severe disability.
4. Applicable for AY 2010-11 (FY 2009-10)

Advance Tax

1. Advance Tax has to be paid by every assessee, if his annual Income tax liability is more than 5,000.
2. Now such limit has been enhanced to 10,000. Advance tax has to be paid by the assessee only if his Income tax Liability is more than 10,000.
3. Applicable for AY 2010-11 (FY 2009-10)

Payment to Transport Operators

1. Any payment made other than through an Account Payee Cheque/Draft above 20,000 is disallowed for expenditures.
2. Now, if such payment is made to a Transport operator, then the limit is increased to 35,000 Rupees.
3. Applicable for Payments made on or after 01st October 2009.

Salary to Partners

1. The different slabs for Partner salary calculation of a Professional firm and others have been combined and revised.
2. Now, for Book profit up to 3 Lakhs (or loss), 90% and above 3 Lakhs 60% should be calculated, for both Professional and other firms.
3. Applicable for AY 2010-11 (FY 2009-10)

Fringe Benefit Tax

1. FBT was introduced in 2005.
2. FBT is now completely withdrawn.
3. Consequently, the fringe benefits will be taxed as perquisites in the hands of the employees.
4. Applicable for AY 2010-11 (FY 2009-10)

Minimum Alternate Tax

1. Companies have  to pay MAT U/s 115JB at the rate of 10%.
2. This rate has been revised to 15%
3. Applicable for AY 2010-11 (FY 2009-10)
4. MAT Credit is permitted up to 10 years from current 7.

Section 89

1. No relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service
2. Applicable for AY 2010-11 (FY 2009-10)

Document Identification Number (DIN)

1. Income Tax Department will allot DIN and quote the same on every notice, order, letter or any correspondences.
2. This will be through a new section 282B under Income Tax Act.
3. This is valid for documents issued to an assessee or any other income-tax authority or any other person.
4. If any document/letter received without DIN shall be treated as invalid and shall be deemed never to have been issued.
5. Applicable for letters/documents issued on or after 01st October 2010.

For Small Business (Presumptive Income Scheme)

1. There are provisions of Section 44AD, 44AE and 44AF for determination of Profits, applicable for construction business, income from goods carriages and business of retail trade, respectively.
2. Under Section 44AD, the assessee can determine the profits at 8% on total turnover.
3. Now the section 44AD is extended to all businesses, where the Total turnover is less than 40 Lakhs.
4. This is applicable for any individual, HUF or a Partnership Firm (not for LLP and Companies)
5. Section 44AF is withdrawn as they are now covered under 44AD.
6. Applicable for AY 2011-12 (FY 2010-11)

Section 44AE - Presumptive income for Goods Carriages:

1. Under this section, assessee, having less than 10 Goods carriage vehicles was allowed to declare this profit on per vehicle basis, as per below price:
   1. Heavy Goods vehicle = 3500 / per vehicle / per month
   2. Other Goods vehicle = 3150 / per vehicle / per month
2. Now the prices are changes to:
   1. Heavy Goods vehicle = 5000 / per vehicle / per month
   2. Other Goods vehicle = 4500 / per vehicle / per month
3. Applicable for AY 2011-12 (FY 2010-11)

Limited Liability Partnership

1. The Limited Liability Partnership Act, 2008 has come into effect in 2009. LLP Rules (except some rules dealing with conversion) and forms have been notified w.e.f. 1st of April, 2009.
2. This status of Assessee will be treated to same of a Firm (Partnership firm) and same ITR forms shall be used as used by a firm.
3. Applicable for AY 2010-11 (FY 2009-10)

Wealth Tax

1. Wealth Tax has to be paid by every assessee if his net wealth is more than 15 Lakhs.
2. Now, such limit has been enhanced to 30 Lakh Rupees
3. Applicable for AY 2010-11 (FY 2009-10)

Commodity Transaction Tax (CTT)

1. CTT was introduced in 2008.
2. CTT is now completely withdrawn.
3. However, Commodity Transactions of 2008-9 will be applicable with CTT.
4. Applicable for AY 2010-11 (FY 2009-10)

I HOPE....U WILL FIND THESE SUMMARY VERY USEFUL FOR PREPARATION OF TAX EXAMS.

REGARDS

RAHUL BANSAL

BEST OF LUCK FOR YOUR EXAMS.