| Section | Head | Limit | Remarks |
| Salary: | |||
| 10(10) | Gratuity | 1. 3,50,000 2. Actual 3. Yr*15/30*Ang salary of 10 Months(Basic+DA+Comm) |
Basic + DA (forming part of retirement benefits) + Comm based on % of turn over |
| 10(10A) | Pension | If gratuity is also available: Accumulated Pension*1/3 Otherwise: Accumulated pension*1/2 |
|
| 10(10AA) | Leave Encashment | 1. Actual 2. 3,00,000 3. 10 months avg salary(last drawn) 4. leave encashment max 30 days for every completed yr of service |
Basic + DA (forming part of retirement benefits) + Comm based on % of turn over |
| 10(10B) | Retrenchment Compensation | 1. Actual 2. 5,00,000 3. Amount calculated in accordance with Industrial Dispute Act |
|
| 10(10C) | voluntary Retirement | 1. Actual 2. 5,00,000 3. Last drawn salary*3*Months of completed yr of service 4. Last drawn salary* Balance no of months in yr of service left |
|
| 10(13A) | House Rent Allowance | 1. Actual 2. Rent paid - 10% of salary 3. 40% or 50% of salary |
Basic + DA (forming part of retirement benefits) + Comm based on % of turn over |
| 10(19) | Family Pension | 15000 or 1/3rd of Family Pension | |
| 11(1A) | Capital Gains | ||
| 11(2) | Accumulations of Income | ||
| 12 | Income from Voluntary Contributions | ||
| 13A | Tax Exemption to Political Parties | ||
| 16(ii) | Entertainment Allowance | 1. 5,000 2. Actual 3. 20% of Basic |
Basic |
| House Property: | |||
| Annual Value | (a). Sum reasonably expected from letting (b). Actual rent recd or receivable (c). If owing to such vacancy actual rent recd or receivable < (a), Actual rent |
GAV Less: Municiple Taxes Unrealisable rent NAV Less: 30% of NAV Int(Max 150,000) paid/payable |
|
| 25AA | Arrears of rent received | Deduction 30% allowed | |
| Deductions from GTI: | |||
| 80C | LIC, PF Etc | 1,00,000* | Maximum of 1,00,000 |
| 80CCC | Pension Funds | 1,00,000* | |
| 80CCD | Pension scheme of CG | 1,00,000* | |
| 80D | Medical Insurance Premia | 20000 for SS/ 15000 for other | Spouse, Parents and children |
| 80DD | Handicapped Dependant | 75000 for severe/50000 for normal | Spouse, Parents and children, Bro & Sis (Dependent) |
| 80DDB | Medical treatment | 60000 for SS/40000 for other or Actual (Whichever is less) |
|
| 80E | Higher education | Entire amount for 7 yr from Initial Ass Yr. | |
| 80G | Donation to funds etc | No ceiling of 10% of Adj GTI 50% for Gandhi, nehru/100% other Ceiling of 10% of Adj GTI 100% for family planning, sport etc 50% for mandir, charitable etc |
|
| 80GG | Rent paid | 1. 2000 PM 2. 25% of TI (After all deductions) 3. Exp.-10% of TI (After all deductions) |
|
| 80GGA | donation to scientific research | 100% | |
| 80GGB | Political parties by company | 100% | |
| 80GGC | Political Parties by Individual | 100% | |
| 80JJA | Bio Degradable waste | 100% for 5 consecutive assessment | |
| 80JJAA | Employement of new workmen | 30% of additional wages paid to new regular workmen for 3 Ass yr. | |
| 80LA | offshore bankng units | 100% for 5 yr/50% for next 5 yr | |
| 80P | Co Operative societies | 1. For Banking, Cottage, Fishing, Milk Etc=100% 2. Other- a. Consumer Co-Op Socity=100% b. Other=50% 3. Other=100% |
|
| 80QQB | Royalty from Books | 1. Lumpsum- 100% 2. Not Lumpsum- Actual or 3,00,000 (lower) |
Royalty>15% shall be ignored, if not paid Lumpsum |
| 80RRB | Royalty from Patents | Actual or 3,00,000 (lower) | Not available to NR |
| 80U | Person with Disability | 75000 for severe/50000 for normal | |
| 80-IA | a. Infrastructure | 100% for 10 yr out of 20 yr's | |
| b. Telecommunication | 100% for 5 yr and 30% for next 5 yr | ||
| c. SEZ/IT park developmt | 100% for 10 yr out of 15 yrs | ||
| d. Power business | 100% for 10 yr out of 15 yrs | ||
| 80-IAB | SEZ developmt | 100% for 10 yr out of 15 yrs | |
| Taxation of Firms: | |||
| Surcharge 10% applicable even if firms Net Income is below Rs. 1 Cr | |||
| Maximum Interest on Capital Account 12% | |||
| Remuneration to working partner only and only with authorisation in partnership deed | |||
| Maximum limit: | Business Firm | First 75,000 | 50,000 or 90% of Book Profit( Higher) |
| Next 75,000 | 60% | ||
| balance profit*(before adjusting remuneration to partners) | 40% | ||
| Professional Firm | First 1,00,000 | 50,000 or 90% of Book Profit( Higher) | |
| Next 1,00,000 | 60% | ||
| balance profit | 40% | ||
| Remuneration and Interest is allowed from presumptive income U/s 44AD,44AE & 44AF. | |||
| If there is a change in constitution of firm than share of retired partner shall not be carry forward | |||
| Presumptive Taxation: | |||
| 44AD | Civil Construction | 8% of Gross receipt | |
| 44AE | Goods carriage | 3500/3150 PM for Heavy/Light Vehicle | |
| 44AF | Retail Business | 5% of Turnover | |
| Capital Gain: | Repurchase | ||
| 54 | House to house | 1 Yr prior or 2 yr after pur/3yr construct | |
| 54B | land to land (Agri) | 2 Yr from date of transfer | |
| 54D | L&B to L&B | 3yr from date of transfer | (Compulsary Acquisition) |
| 54EC | Any capital assets to Shares etc. | 6 Month from date of transfer | |
| 54F | Other to House | 1 Yr prior or 2 yr after pur/3yr construct | Not own >1 house other than new asset |
| 54G | L&B/P&M to L&B/P&M | 1 yr prior or 3 yr after fron dt of trnsfer | (Urben to Non Urben) |
| 54GA | L&B/P&M to L&B/P&M | 1 yr prior or 3 yr after fron dt of trnsfer | (Urben to SEZ) |
| 139(3) | Return of loss | Before 31st Oct of relevant AY | |
| 139(4) | Belated return | Before 1 Yr from end of Relevent AY or Before completn of Assessment | |
| 139(5) | Revised Return | Return filed originaly U/s 139(1)/142(1) Before 1 Yr from end of AY or compln of Assessment. |
|
| 139(9) | Defective/Incomplete return | ||
| 139A | PAN | ||
| 139B | Tax return prepares | ||
| 234A | Default in furnishing ROI | 1% P.M. or part of Month | |
| 234B | Default in payt of Adv. Tax | 1% P.M. or part of Month If Adv tax paid is <90% of Tax due. |
From April 1 to date of determination of Income |
| 234C | Deferment of Adv tax | 1% P.M. or part of Month | |
| 234D | Int on Excess Refund | 0.50% PM or part of month | |
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