Direct Tax Ready Reference

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. )   (9017 Points)

14 February 2010  

 

                DIRECT TAX READY REFERENCE       For PRIVATE CIRCULATION ONLY  
                       (COVERING BUDGET 2009-2010)              
                                           
A TAX STRUCTURE - INCOME      2007-08 2008-09 2009-10 2010-11   ADVANCE IT : (if liability = or > 10000)     Return Due Date u/s 139(1) DEPRECIATION AY 06-07 onwards
1 IND/HUF/AOP/BOI-Basic Exemption --->   100000## 110000## 150000## 150000##   Due Date Company Other than company   From Asst year 2008-09   Due Date   upto 05-06
  From 100000 upto 110000   10+0.2%* Nil Nil Nil   By 15th june upto 15% -   1. Non-corporate assessee or a working partner of a firm (where books are reqd to be audited) & Corporate Assessee Sept 30 of the asst year PLANT & MACHINERY   25% 15%
  Next 40000 upto 150000   10+0.2%* 10+0.3%* Nil Nil   By 15th Sep upto 45% upto 30%   FURNITURE & FIXTURE  15% 10%
  Next 10000 upto 160000   20+0.4%* 20+0.6%* 10+0.3% Nil   By 15th Dec upto 75% upto 60%   COMPUTERS                  60% 60%
  Next 90000 upto 250000   20+0.4%* 20+0.6%* 10+0.3% 10+0.3%   By 15th March 100% 100%   BUILDINGS    
  Next 50000 upto 300000   30+0.6%** 30+0.9%** 10+0.3% 10+0.3%   COST INFLATION INDEX :         Non RESIDENTIAL        10% 10%
  Next 250000 upto 500000   30+0.6%** 30+0.9%** 20+0.6% 20+0.6%   1981-82 100 1995-96 281   2. Any other assessee   July 31   RESIDENTIAL                 5% 5%
  Rest          -               -     30+0.6%** 30+0.9%** 30+0.9%** 30+0.9%   1982-83 109 1996-97 305   3. Return of Loss-139(3) within due date   Purely Temp Erections100% 100%
   ## Basic Exemption:   Resident Woman below 65 yrs  135000 145000 180000 190000   1983-84 116 1997-98 331       CAR & VEHICLES           20% 15%
       Senior Citizen, 65 yrs or above  185000 195000 225000 240000   1984-85 125 1998-99 351   4. belated return-139(4) 1yr from the end of asst yr CAR OR VEHICLES USED ON HIRE                         40%  
  ** Surcharge of 10% if net income exceeds Rs 10 Lac (AY 06-07 to 09-10) before EC/SHEC included above   1985-86 133 1999-00 389       30%
2 REGD.FIRM         30+3.66% 30+0.9%# 30+0.9%# 30+0.9%   1986-87 140 2000-01 406   Note: Filing of Return by Corporate Ass-essee / Firm  is compulsory Only 50% Depre. will be allowed if assets acquired / used for < 180days
3 DOMESTIC COMPANY REGULAR TAX 30+3.66% 30+0.9%# 30+0.9%# 30+0.9%#   1987-88 150 2001-02 426  
        MAT (Section 115JB) 10+1.22% 10+0.3%# 10+0.3%# 15+0.45%#   1988-89 161 2002-03 447   Tax Deducted at Source: 1)Deposit of TDS to Govt a/c to  be made within 7 days from the end of the month in which provision for TDS is made and within 2mths(7days for salary) if provision for TDS is made at the end of financial year.
        C/F of MAT Credit 10 years 10 years 10 years 10 years   1989-90 172 2003-04 463  
  #if net income exceeds Rs 1.0 Crore: 1) Surcharge of 10% before EC(2%)+SHEC(1%) included above 2) Marginal relief of tax exceeding income   1990-91 182 2004-05 480  
4 TAX ON LONG TERM CAPITALGAIN (with indexation benefit)     # Plus S/C as applicable   1991-92 199 2005-06 497   2) Filing of return in computer media mandatory for Company, Govt deductor,
  IND/HUF/AOP/BOI       20+SC+EC% 20+SC+Cess% 20+SC+Cess% 20+Cess%   1992-93 223 2006-07 519       those who r covered u/s 44AB, assessee with no. of deductors>50 (qtrly);
  DOMESTIC CO./FIRM     22.44% 20+0.6%# 20+0.6%# 20+0.6%#   1993-94 244 2007-08 551   3) Returns to be filed quarterly  in F/24Q (Salary) or F/26Q (others) within 15 days
  Notes: 1) Tax on LTCG can be taken as 10%+SC+Cess in case of transfer of listed shares/securities/units without indexation benefit   1994-95 259 2008-09 582       from the end of quarter (76 days in case of last quarter);  
                 2) Income from LTCG is exempt in case of  transfer of equity shares/units of equity oriented fund which are liable to STT   IMPORTANT PROVISIONS:     4) TDS certificate to be made in Form 16/12BA for Salary, F/16A for others;
5 TAX ON S T CAPITAL GAIN (ON TRANSFER OF SECURITIES-SEC 111A) 10+SC+EC% 10+SC+EC% 15+0.45%# 15+0.45%#   a) Transfer of a property to non-relative Ind/HUF without consideration or less than stamp duty value (immovable) or less than FMV (movable) is chargeable to tax in the hands of transferee u/sec 56(2)(vii) wef 01.10.2009 [maximum relief Rs 50,000]   5) For lower deduction the recipient may apply to AO in F/13 or a declaration may
  #if net income exceeds Rs 1.0 Crore: 1) Surcharge of 10% before EC(2%)+SHEC(1%) included above 2) Marginal relief of tax exceeding income          be made in form 15G/15H (for Int./Div./NSS only), 15I (for transport contractor);
B DEDUCTIONS & REBATES                 6) PAN data of deductees should be minimum 95% for 24Q & 85% for 26Q.  
a General Deduction 80C/80CCC/80CCD   100000 100000 100000 100000     TDS Liability(wef 01.10.09)   Rate TDS Liability(wef 01.10.09)   Rate
b Mediclaim   80D     10000 15000 15000* 15000*     Interest > 5000 pa [Rs 10000 in case of pymt of banks/PO] - Sec 194A 10.00% *Contractor / Subcontractor>20000 (single) or 50000 pa  --- Ind/HUF---> 1.00%
  (otherwise than cash)      for Sr. Citizen Rs.15,000/- wef AY 2000-01 & Rs. 20,000 wef AY 2008-09   b) Remuneration to partners 40(b)- Fin Yr 2009-10:     Others  ----> 2.00%
         *Additional Deduction for Mediclaim of Parents Rs 15,000 (Rs 20,000 in respect of Sr. Citizen) Book Profit Allowability   Sec 194C  
c Standard Deduction 24(a) 30% 30% 30% 30% 30% 30% < 0 Rs 150000 Commission or Brokerage >2500 pa -Sec 194H 10.00% *[transport Operator - Nil  if PAN furnished]
  (in case of rented House Property)           < or = Rs 300000 higher of 150000 or 90%   Rent - Plant & Machinery  >1,20,000 pa - 194-I 2.00%
d Int on borrowed capital 24(b)     150000* 150000* 150000* 150000* on Balance 60% Fees for Prof or Technical Services > 20000pa - Sec 194J 10.00%  
  (in case of self occupied House Property)           c) Certain eligible assessee not required to maintain book of accounts, not required to pay advance tax, if there turnover/gross receipts does not exceed Rs 40 Lac and they show income @ 8% (wef: Fin Year 2010-11)     Rent - Land / Building  / Furniture / Fittings >1,20,000 pa - 194-I 10.00%
  *30000 Generally (higher deductions are allowable only where the capital is borrowed after 01.04.99 and property is acquired/constructed within 3yrs from the end of FY in which capital was borrowed.)     Dividend u/s 2(22)(e) > 2500 pa - Sec 194 10.00%  
        Compensation on acquisition of certain immovable properties-194LA 10.00%
C  CARRY FORWARD & SET-OFF OF LOSSES:  Set-off Carry Forward & Set-off     winning from lottery / horse race  etc - 194B/BB 30.00%  
        * except Salaries Same Head another head C/F Years agst whom   d) AO can include any other issue [not mentioned in 148(2)] during assessment u/sec 147     Insurance Commission - 194D   10.00%
   1. Salaries  Yes Yes No NA NA     Note:w.e.f. 01.04.2010 furnishing of PAN to deductor, in 15G/H/I and to AO for lower dedn. is mandatory - noever TDS will be higher of 20% or prescribed or in force
   2. House Property      Yes Yes Yes 8 years same head   INTEREST ON INCOME TAX:    
   3. Speculation Business / Specified Bus. 35AD  No No Yes 4 years same item   1.Filing of return after due date u/sec 234A Int @ 1% pm or part of the mth from the end of Due Date for filing of return   Important Prescribed Forms under Income Tax Rules 1962  
       Ubabs. Depreciation / Cap Exp on SR/FP  Yes Yes Yes No limit any income     Return of Income & FBT Form No. Return of Income Form No.
       Non-speculative Business or Profession  Yes Yes* Yes 8 years same head   2.Defaults in pymt of Advance Tax u/s 234B Int @ 1% pm or part of the mth from the 1st day of April of the AY   1. corporate assessee ITR-6 1. Individual with Salary & Int ITR-1
   4. Long Term Capital Gains    No No Yes 8 years same item     2. Firms, AOPs and BOIs ITR-5 2. Ind/HUF without Busi/Prof ITR-2
       Short Term Capital Gains    Yes No Yes 8 years same head   3.Deferment in pymt of Advance Tax u/s 234C Int @ 1% pm or part of the mth on the deficit amt as applicable    3. Person reqd. to furnish return u/s 139(4A) / (4B) / (4C) / (4D) ITR-7 3. Ind/HUF being partners in firm (without prop.Busi/Prof) ITR-3
   5. Owning / Maintaining race horses  No No Yes 4 years same item        
       Lotteries / Crossword Puzzles etc.  No No No NA NA   4.Interest for late pymt of demand u/s 156 Int @ 1% pm or part of the mth from the end of 30 days of Demand Notice   4.Return for Fringe Benefits ITR-8 4. Ind/HUFwith prop.Busi/Prof ITR-4
       Income from Other Sources (except if exempt)  Yes Yes No NA NA     5.Manual Form for no DS ITR-V Appeal    
D WEALTH TAX  [IND / HUF / CO]   Exemption Tax GIFT TAX   Exemption  Tax   4.Failure to deduct and pay TDS u/s 201(1A) Int @ 1% pm or part of mth  from the date on which tax was deductible   Other Forms   1. To CIT(Appeals)-2copies 35
  wef FY 1995-96   15 lac 1% FY 1995-96 to 1998-99 30000 30%     1. PAN Application 49A 2. To ITAT - 3copies 36
  wef FY 2009-10   30 lac 1%   (Abolished from 01/10/98)   Some Tax Saving cum Investment Schemes: 2. TAN Application  49B 3. Memorandum of cross objection to ITAT-3 copies 36A
  GIFT(wef 01.04.06) Gift received by an Ind. or HUF (and in kind wef 01.10.2009) without consideration from a non-relative above Rs 50,000 in a FY is entirely taxable as Income   6 year NSC VIII issue 8% compounded half yearly Investment and accrued interest qualify for tax deduction u/sec 80C 3. Wealth Tax Return Form BA  
    4. STT pymt evidence 10DB/10DC 4. To ITAT-to refer to High Court any question of law 37
E Interest NSC (on every Rs 1000) 1st year 2nd Year 3rd Year 4th Year 5th Year 6th Year   5. Annual Tax Statement 26AS 3 copies
  31.03.1989-31.12.1998 124.0 139.0 156.0 175.0 197.0 224.0   15 yr Public Provident Fund compound int 8% per yr Inv qualify for tax deduction u/sec 80C;Int exempt u/sec 10(11) Challans     Charitable & Religious Trusts
  01.01.1999-14.01.2000 118.3 132.3 148.0 165.4 185.1 206.9   1. Income Tax 280 1. Appln for regn 10A
  15.01.2000-28.02.2001  113.0 125.8 140.0 155.8 173.5 193.1   2. TDS/TCS Tax Challans 281 2.Appln for approval/ cont -inuance u/s 80G(5)(vi) 10G
  01.03.2001-28.02.2002 97.2 106.7 117.1 128.5 141.0 154.7   Life Insurance Premium rate of bonus keeps on fluctuating Bonus is totally exempt; Inv qualify for tax deduction u/sec 80C 3. Misc Direct Taxes 282 3 copies
  01.03.2002-28.02.2003 92.0 100.5 109.7 119.8 130.9 142.9   4. Fringe Benefit Tax 283 3. Notice for accumulation of Income to AO 10
  01.03.2003 and after 81.6 88.3 95.5 103.3 111.7 120.8          
  Note: I)The above chart does not cover the provisions related to Non-resident assessee and Foreign Company ii) reference to year wherever appears represents asst year unless otherwise specified.  
  Important Links: Income Tax Site: https://www.incometaxindia.gov.in    For Income Tax e-Return Filing: https://incometax-indiaefiling.gov.in   For PAN/TAN related matters: www.tin-nsdl.com or www.utitsl.co.in