Some of amendments made to income tax act by finance act 201

Some amendments made to Income tax by finance act 2010.

1)      Limit for compulsory audit under section 44AB is enhanced to 60 Lakhs and 15 Lakhs for business and profession respectively.

2)    Penalty for not getting books audited with prescribed time under section 44AB is enhanced to Rs.1,50,000 from Rs.1,00,000.

3)    New deduction of Rs.20,000 can be claimed under section 80CCF for Investment in Long Term Infrastructure fund apart from 80C limit of Rs.1,00,000.

4)    No disallowance under section 40(a)(ia) if the TDS is remitted before filing of return under section 139 of income tax act. Earlier march month deduction alone allowed to be remitted before filing of return. Now any month TDS can be remitted before filing of return.

5)    Interest under section 201 for belated payment of TDS is enhance to 1.5% from 1%.

6)    Contribution to Central Government Health Scheme is allowed as deduction under 80D subject to limit.

7) Surcharge for Companies reduced to 7.5%.

8) Minimim Alternate Tax increased to 18%.

9) New Slab rate:

     Up to 1,60,000                        Nil

     From 1,60,001 to 5,00,000      10%.

     From 5,00,001 to 8,00,000     20%.

     From 8,00,001 and above        30%.

     For Residen Women and Senior Citizen Rs.1,60,000 shall be substituted as Rs.1,90,000 and Rs.2,40,000 respectively.

Extention of Basic limit for non deduction of TDS.