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Amendments made to Income Tax Act

Member (Account Deleted) Guest , 26 February 2010  
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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)    MAT increase to 18%.

8)    Surcharge on Companies reduced to 7.5%.

9)    New Slab rate

                   Up to Rs.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 Resident women and Resident Senior Citizen Rs.1,60,000 shall be substituted as 1,90,000 and 2,40,000 respectively.

 

Extention of Basic limit for non deduction of TDS.

 

Type

Earlier

Amendment

TDS on Winning from Lottery and Cross Word Puzzle

Rs.5000

Rs.10,000

TDs on Winning from Horse Race

Rs.2000

Rs.5000

TDS on 194 C contract

Rs.20,000 for single bill and Rs.50,000 for aggregate payment

Rs.30,000 for single bill and Rs.70,000 for aggregate payment.

TDS on 194 D – Insurance Commission

Rs.5000

Rs.20,000

TDS on 194 H – Commission or Brokerage

Rs.2500

Rs.5000

TDS on 194 I – Rent

Rs.1,20,000/Annum

Rs,1,80,000/Annum

 

TDS on 194 J – Professsion and Consultancy

Rs.20,000

Rs.30,000

 

 

 

 

 

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Category Income Tax, Other Articles by - Member (Account Deleted) 



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