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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