17054178 37 income tax ready reconer

7/30/2019 17054178 37 Income Tax Ready Reconer

1/49

Tax rates for the assessment year 2009-10 are given below

Net Income Range Income tax rates Surcharge Education cess

Secondary and

higher Education

Up to Rs. 1,50,000.00 NIL NIL NIL NIL

Rs. 1,50,000.00 - Rs.

3,00,000.00

10% of (total income

minus 1,50,000.00) NIL 2% of income tax 1% of income tax

Rs. 3,00,000.00 - Rs.

5,00,000.00

s. , . + o

(total income minus

3,00,000.00) NIL 2% of income tax 1% of income tax

Rs. 5,00,000.00 - Rs.

10,00,000.00

s. , . + o

(total income minus


Above Rs.

10,00,000.00

s. , , . + o

(total income minus

10,00,000.00)

10% of

Income tax

2% of income tax

and Surcharge

1% of income tax

and Surcharge

Net Income Range Income tax rates Surcharge Education cessecon ary an

higher Education


Rs. 1,80,000.00 - Rs.

3,00,000.00



Rs. 3,00,000.00 - Rs.

5,00,000.00

s. , . + o

(total income minus


Rs. 5,00,000.00 - Rs.

10,00,000.00

s. , . + o

(total income minus


1. For Individual , every, HUF/AOP/BOI/Artificial Juridical Person.

2. For Resident woman (Who is below 65 years at any time during previous year)


2/49

Above Rs.

10,00,000.00

s. , , . + o

(total income minus

10,00,000.00)

10% of

Income tax

2% of income tax

and Surcharge

1% of income tax

and Surcharge

3.For Resident Senior Citizen (Who is 65 years or more any time during previous year)

Net Income Range Income tax rates Surcharge Education cess

econ ary an

higher Education


Rs. 2,25,000.00 - Rs.

3,00,000.00



Rs. 3,00,000.00 - Rs.

5,00,000.00

s. , . + o

(total income minus


Rs. 5,00,000.00 - Rs.

10,00,000.00

s. , . + o

(total income minus


Above Rs.

10,00,000.00

s. , , . + o

(total income minus

10,00,000.00)

10% of

Income tax

2% of income tax

and Surcharge

1% of income tax

and Surcharge

4. Firms

Tax Rates 30%

Surcharge 10%*

Education Cess 2%

Secondary and higher

Education cess 1%

Note:-* (If net income exceeds Rs.1 Crore than surcharge 10%)


3/49

5. Local Authorities:-

Tax Rates 30%

Surcharge 10%

Education Cess 2%

Secondary and higher

Education cess 1%

6. Co-operative Societies:-

Net Income Range Rate of Income Tax Surcharge Education Cess

Secondary and

higher education

cess

Upto Rs.10000.00 10% NIL 2% of income tax 1% of income tax

Rs. 10000 to Rs.

20000.00 20% NIL 2% of income tax 1% of income tax

Rs. 20000.00 and

above 30% NIL 2% of income tax 1% of income tax

7. Companies

Company Rate of Income Tax Surcharge Education Cess

Secondary and

higher education

cess

Domestic Company 30% 10%*

2% of income tax

and surcharge

1% of income tax

and surcharge

Foreign Company 50% / 40% *** 2.5%**

2% of income tax

and surcharge

1% of income tax

and surcharge

Note:-*

* If net income exceed Rs. 1 Crore than surcharge 10%.

** If net income exceed Rs. 1 Crore than surcharge 2.5%.


4/49

*** Royalty received from Government or an Indian Concern in Pursuance of an agreement made by it wit

the Indian concern after March 31, 1961, but before April 1 ,1976 or fees for rendering technical servic

pursuance of an agreement made by it after February 29 1964 but before April 1, 1976 and where such

agreement has , in either case, been approved by the Central Government.

10. Short-term Capital gain :- 15%

11. Long-term Capital gain:- 20%

12. Wealth-Tax

1% of the amount by which net wealth exceeds Rs. 15,00,000.00 (applicable in the case of every individua

HUF And Company. [Surcharge nil, and Education cess nil]


5/49


6/49


7/49


8/49

in

l ,


9/49

Deductions, allowance and exempt income from Gross total Income.

Section 80C:

1) Deductions under this sections is available only to an individual or a HUF.

2) The maximum amount deductible under section 80C is Rs. 100000.00. Moreover , the

aggregate amount of deductions 80C, 80CCC and 80CCD cannot exceed Rs.100000.00

Following are the nature of payment:

1) LIC (Subject to 20% of sum assured)

2) Non-Commutable deffered annuity. (in the name of Individual, child and his wife or her husband)

3) Deducted from the salary of the govt Employee for purpose of Securing him Deffered annuity

(subject to 20% of salary of individual) for Indivudual, wife and child)

4) Contribution to RPF and SPF and approved Superannuation Fund.

5) Contribution to 15 year PPF.

6) Contribution to NSC, ULIP of UTI, ULIP of LIC Mutual Fund .

7) Payment for notified annuity plan of LIC I.e (New Jeevan Dhara I,II,& III) and New Jeevan

Akshya I,II,& III).

8) Subcription to towards notified units of mutual fund or UTI.

9) Contribution to notified fund setup by Mutual fund or UTI.10) Repayment of Instalment of Housing loan.

11) Any sum paid as Tuition Fees (Subject to two children of Individual).

12) Any payment towards the cost of purchase,construction of residential Property.

13) Amount invested in approved debenture and equity share in public company engaged in the

infrastructure including power sector or units of mutual Fund which are used for a new

infrastructure facility.

14) Amount Deposited in a fixed Deposit for a period of five year with a sehedule bank with a

scheme framed by Central Govt.

15) Subcription to NABARD.

16) Amount Deposited under Senior Citizens Saving Scheme.

17) Amount Deposited in five year Time Deposit scheme in Post office.

Section 80CCC:

Deduction in respect of Contribution to pension fund .

1) This section provides a deduction to an individual for any amount paid or deposited by him in any

annuity plan of LIC or any other insurer for receiving pension from pension fund(1023AAB).

The deduction shall be restricted to Rs, 100,000.00.

2) The maximum amount deductible under section 80CCC is Rs. 100000.00. Moreover , the


Section 80CCD:

Deduction in respect of contribution to pension scheme notified by central Government.

1) The Individual is employeed by the central govt or any other employer on after 01 january 04.

2) He has in PY paid or deposited any amount in his account under a pension scheme notifiedby the central govt.

3) The maximum amount deductible under section 80CCD is Rs. 100000.00. Moreover , the



10/49

Section 80D:

Deduction in respect of medical insurance premia.

1) Following condition one should satisfy to claim this deduction.

2) The tax payer is an individual ( may be resident or non resident) or HUF ( may be resident or

non-resident)

3) Insurance premium paid to scheme framed by GICI and any other Scheme framed by

central govt.

3) The premium can be paid by any mode other than cash.

4) Following are the person on which Mediclaim policy is taken.

Individual :- Spouse, Dependent, Individual and Dependent Children.

HUF:- Any member of the family.

Amount of Deduction

General Deduction Rs. 15000.00 and additional amount which is deductible when policy is taken

on health of a senior citizen Rs. 20000.00

Section 80DD:

Deduction in respect of maintenance including medical treatment of a handicapped dependent

who is a person with disability.

1) The taxpayer is Resident in India may be a Individual or a HUF and to claim this deduction

one should not get deduction U/S 80U.

2) Following are the Person:-

Individual: Spouse, children, Parents, Brothers, Sisters of the individual or any of them

HUF: Any dependent member of family.

Amount Of Deduction

A Fixed Deduction Rs. 50000.00 and a higher deduction Rs.75000.00 may be allowed if such

dependent is a person with severe dsiability having disability over 80%.

Section 80DDB:

Deduction In respect of medical treatment.

1) The taxpayer is Resident in India may be a Individual or a HUF

2) Following are the Person:-

Individual: Spouse, children, Parents, Brothers, Sisters of the individual or any of them

HUF: Any dependent member of family.

Amount Of Deduction

1) Rs. 40000.00 or acutal expenditure incurred. But in case of Senior Citizen Rs.60000.00 or acutal

expenditure incurred .

2) Deduction shall be reduced by the amount received from the insurance company or from

the employer.

Section 80E:

Deduction in respect of repayment of loan taken for higher education.

Amount of deduction

Entire payment f interest is deductible. The deduction is available for a maximum of 8 years or

till the interest is paid.


11/49

Section 80G:

Deduction in respect of donations to certain funds, charitable institutions etc.

Ref:- Book

Amont of Deduction

10% of adjusted gross total income on qualifying amount of deduction.

Section 80GG:

Deduction in respect of rent paid.

1) He should be a self-employed person and /or a salaried employee who is in receipts of house

rent allowance at any time during the previous year.

Amount of Deduction:

least of three

1) Rs. 2000.00 per month.

2) 25% of total income (after excluding long term and short term capital gain.

2) the excess of actual rent paid over 10% of total income (after excluding long term and short

term capital gain)

Section 24:

Deduction under section 24 (House Property Income)

Amount of Deduction

1) Standard Deduction 30% of net annual value is deductible irrespective of any expenditure

incurred by the taxpayer. Municipal tax is deduct from gross annual value of it is paid by owner

and actually paid during the previous year.

2) Interest on borrowed capital is allowable as deduction purpose of purchase, construction,

repair, renewal or reconstruction of house property on accrual basis.

Section 10(13A): House Rent allowance

Amount of Allowance (Least of the following)

1) 50% salary in case of the residential house is situted at Bombay, Kolkata, Delhi and Madras& 40% salary at any other place

2) Actual HRA Received.

3) the excess of rent paid over 10% of salary.

Section 16(ii): Entertainment allowance

Amount of Allowance (Least of the following) Only in case of GOVT employee.

1) Rs 5000.00

2) 20% of basic salary

3) Actual amount Received

Other Misc. Allowance:

Children Education Allowance:- Rs. 100 per month per child upto a maximum of two children

Children Hostel Allowance:- Rs. 300 per month per child upto a maximum of two children

Exempt Income:-

1) In case the income of an individual includes the income of his minor child in terms of

section 64 1(A) such individual shall be entitled to an exemption of Rs.1500.

2) Dividend received from Indian companies u/s10(34).

3) Share of profit from a firm.


12/49

Section 40(b):- Remuneration to partner.

Remuneration shouldnot be exceed the permissible limit:-

In case of a firm carrying on a profession

a) On the first Rs.1,00,000.00 of the book profit Rs 50000.00 or 90% of Book Profit

which ever is more

b) on the next Rs.1,00,000.00 of the book profit 60% of Book Profit

c) on the balance of book profit 40% of Book Profit

In case of any other firm

a) On the first Rs.75,000.00 of the book profit Rs 50000.00 or 90% of Book Profit

which ever is more

b) on the next Rs.75,000.00 of the book profit 60% of Book Profit

c) on the balance of book profit 40% of Book Profit

Here Book Profit Means:-

1) Find the net profit of the firm as per P/L account.

2) Income from HP, other source, CG, not part of the P/L account.

3) Add remuneration to partner if debited to P/L account.

Section 40(b):- Interest payable to partner.

1) Interest should not exceed 12%.

2) If Exceeds than excess amount is not deductible.


13/49

Advance Payment of Income Tax For the assessment year 2009-2010.

Due dates of payment of advance Tax.

Particulars / Date Corporate Assessee Non-Corporate Assessee

on or before 15 June

Upto 15% of advance tax

payable NIL

on or before 15 September


payable


payable

on or before 15 December


payable


payable

on or before 15 March


payable


payable

Interest payable by the assessee.

Section 234A: For defults in furnishing return of Income.

If the return of income is furnished after the due date, the assessee is liable to

Pay simple interest @1% per month or part of month.

Section 234B: For defults in payment of advance tax.

An assessee who is liable to pay advance tax , has to failed to pay such tax than

simple interest @1% is Payable on assessed tax from the date on which advance

tax become due.

As assessee who is paid advance tax but the amout of advance tax paid by him isless than 90% of assessed tax, than Simple interest @1% is payable on Assessed

tax minus advance tax.

Section 234C: For deferment of advance tax

Interest is payable on the under this section if the assessee has not paid the

advance tax or underestimated instalments of advance tax.Interest is computed

on the following basis.

In case of Non-corporate assessee

When Interest payable Rate of Interest Period of Interest

Amount on which interest is

payable

On or before 15 Sep less

than 30% (a-b) Simple Interest @1% 3 Months 30%(a-b)-cOn or before 15 Dec less

than 60% (a-b) Simple Interest @1% 3 Months 60%(a-b)-d

On or before 15 Mar less

than 100% (a-b) Simple Interest @1% - 100%(a-b)-e

In case of corporate assessee

When Interest payable Rate of Interest Period of Interest

Amount on which interest is

payable

On or before 15 June less

than 12% (a-b) Simple Interest @1% 3 Months 15%(a-b)-c

On or before 15 Sep less

than 36% (a-b) Simple Interest @1% 3 Months 45%(a-b)-d

On or before 15 Dec lessthan 75% (a-b) Simple Interest @1% 3 Months 75%(a-b)-e

On or before 15 Mar less

than 100% (a-b) Simple Interest @1% - 100%(a-b)-f

Note:-

b) TDS or TCS.

f) Amount of advance tax on or before Mar of the FY.Immediately preceding the relevants AY.

a) Tax on total income declared in the return filed by the assessee.

c) Amount of advance tax on or before Jun15 of the FY.Immediately preceding the relevants AY.

d) Amount of advance tax on or before Sep15 of the FY.Immediately preceding the relevants AY.

e) Amount of advance tax on or before Dec 15 of the FY.Immediately preceding the relevants AY.


14/49

FBT for the assessment year 2009-2010A)

Sl.no Particulars

Amount of

Expenditure (in %) Remarks

1 Entertainment 20%

2 Hospitality 20%

however employer engaged in the business of hotel,

hospitality for airline and shipping companies FBTvalued to be 5%

3 Conference 20%

4

Sales Promotion &

Publicity 20%

Exp. On display of product, free sample medicine or

medical equipment are not subject to FBT

5 Employee Welfare 20%

6

Conveyance, Tour,and

Travel (including foreign

travel) 5%

7 Local Travel 20%

8

Hotel, Boarding and

lodging 20%

however employer engaged in the business of

manufacturing or production of computer software,

airline and shipping companies FBT valued to be 5%

9

Repair,running(including

fuel), maintenance of

motor car, Depreciatio

and Interest on loan 20%

10

Telephone charges

(including mobile phone) 20%

11

Accommodation of

Guest house. 20%

12 Festival Celebrations 50%

13 Health and club Facilities 50%14 Gift 50%

15 Scholarships 50%

B) Such fringe benefits will be taxed @ 30% us 115WA.In addition Surcharge 10%+Education cess2%+Secondary

higher education cess 1%.

Due dates of payment of advance Tax of FBT.

Particulars / Date Corporate Assessee Non-Corporate Assessee

on or before 15 June

not less than 15% of

total FBT NIL

on or before 15 Septemb


total FBT not less than 30% of total FBT

on or before 15 Decembe


total FBT not less than 60% of total FBT

on or before 15 March

not less than100% of

total FBT not less than100% of total FBT


15/49

Interest on FBT

As per provisions u/s 115WJ , Interest @1% per month or part of a month for 3 months is to be paid

for the shortfall of advance FBT payable by the due dates as mentioned above.

Further where an assessee has failed to pay the advance tax payable by him during a financial year

or where advance tax paid by him is less than 90% of tax assessed u/s 115WE(regular assessment)

or u/s 115WF (best judgemnt assessment) u/s 115WG (re-assessment ) simple interest @ 1% permonth is payable, for every month or part thereof comprised in the period from the 1st day April

next following such financial year.

FBT is calcuted by given rate.

Fringe Benefits Tax rate 30%

Sucharge 10%

Education cess 2%

SHEC 1%


16/49

Return form:- The CBDT has notified following forms for filling of Income tax return.

ITR FORM

ITR - 1 For Individual having income from salary and interest.

ITR - 2 For Individual and HUF not having Business and Profession income.

ITR - 3 For Individual and HUF being partners in firms.

ITR - 4 For Individual having income from a proprietary business or profession.

ITR - 5 For Firms, AOPs and BOIs.

ITR - 6 For CompaniesITR - 7 For persons including companies furnish return under sec 139(4A), 4B,4C,4D.

ITR - 8 Return for fringe Benefits

Rule of carry forward of loss

No. of

Year C/F

1) HP Loss Income under head "Income from HP. 8 Years

2) Speculation Loss Speculation Profit 4 Years

any income not being salary income

No-time

limit

ii) other remaining business any business profit wheather from speculation 8 years

or otherwise.

4) Capital Loss

I) Short-term capital loss any income under the Head of "Capital Gains". 8 years

ii) Long-term capital loss Long term Capital gains. 8 years

4 Years

5) Loss from the activity ofowning and maintaining race

horses.

Income from the actvity of owing and

maintining race horses.

Profit against which C/F loss can be set-of

SUBJECT

Type of Loss

3) Non- Speculation

Business loss

I) on a/c of unabsorbed depn

and Family planning


17/49

SCHEDULE OF RATES OF TAX ON PROFESSIONS, TRADES AND EMPLOYMETS

Salary & wages earners. Such persons whose monthly salaries or wages are

sl.no Amount of tax

1) Rs.3000.00 or less NIL

2) Rs.3001.00 or more but less than Rs.5001.00 Rs.30 p.m








10) Rs.40001.00 and above Rs.200 p.m

Legal practitioners,including solicitors, and notaries public;medical practitioners, Directors( other than

those nominated by the Govt. ) of companies act 1956, Technical and professional consultants including

architects, engineers, Chartered accountants, actuaries, management consultants and tax consultants.

Where the annual gross inocme of the persons mentioned above is

sl.no Amount of tax

1) Rs.18000.00 or less NIL

2) Rs.18001.00 or more but less than Rs.24001.00 Rs.216 p.a.








10) Rs.180001.00 or more but less than Rs.300001.00 Rs.1560

11) Rs.300001.00 and above Rs.1800 p.a.

Contractors of all description engaged in any type of work

Such contractors whose gross business in year is:

sl.no Amount of tax

1) Less than Rs.100,000.00 NIL



4) Rs.1000001.00 and above Rs.900 p.a.

Dealers liable to pay tax under the west bengal sales tax act 1984, central sales tax act , 1956 or the

west bengal value added tax act , 2003.

Such dealers whose annual gross turnover is:

sl.no Amount of tax

1) Less than Rs.200000.00 Rs.150 p.a.

2) Rs. 200000.00 or more but not exceeding Rs. 7.5 Lakh Rs.300 p.a.

3) above Rs. 7.50 lakh but not exceeding Rs. 25 Lakhs Rs.600 p.a.

4) above Rs. 25 lakh but not exceeding Rs. 50 Lakhs Rs.1200 p.a.

5) above Rs. 50 lakh but not exceeding Rs. 2 crore Rs.2000 p.a.

11) Above 2 crore Rs.2500 p.a.

Range

Range

Range

Range


18/49

Partnership firms when engaged in any profession , Trade or calling.

Such firm whose gross turnover is :-

sl.no Amount of tax

1) Rs. 25 lakhs or less Rs.600 p.a.

2) above Rs.25 lakhs but less than 1 crore Rs.1200 p.a.

3) Rs. 1 Crore or above Rs.2500 p.a.

Companies registered under the companies act 1956. Rs.2500 p.a

such companies engaged in any profession, trade and calling.

Banking Companies as defined in the banking regulations act 1949 Rs.2500 p.a

OTHERS

Internet caf Rs. 1500 p.a

Security Agency Rs.2500 p.a

Weighbridge Rs. 1500 p.a

Money lender under bengal money lender act 1940 Rs.2500 p.a

Destilleries, breweries and bottling plant. Rs.2500 p.a

Foreign Liquor Vendors Rs.2500 p.a

Residentilal Hotels (3 star category) Rs.2500 p.a

Nurshing home or pathological Laboratories. Rs.2500 p.a

Cinema hoses and Theaters Rs 500 p.a

Cold Stroage Rs 900 p.a

Advance tax on professional Tax :- There is no provision regarding payment of advance of

professional tax.

Interest:- if the payment not been paid within due dates than interest will be attract @1% per month.

Range


19/49

TAX DEDUCTED AT SOUCRCE

Section 194A:- Deduction of tax at source from interest other than interest on securities

Tax under section 194A is not deductible where the aggregate amount of interest credited

or paid during a financial year does not exceed the amount given below.

3) Where the payer is post office and interest is paid or

payable notified deposit scheme with post office.

4) Where the payer is the person

Rate of Deduction:-

Nature of paymentIf receipient is a resident other

than a domestice co. 10.30% 11.33%

If receipient is a domestice co. 20.60% 22.66%

Section 194B:- Deduction of tax at source from winnings from lotteries or crossword puzzles:

(Both resident and non resident.)

A person reponsible for paying to any person any income by way of winnings from lotteries

or crossword puzzles or winnings from card games or other games , exceeding Rs.5000.00

is required at the time of such payment, to deducted income tax thereon at the rate 30.9%.

Rate of Deduction:-

Nature of payment

winnings from lotteries,

crossword puzzles, card games 30.90% 33.99%

Section 194BB:- Deduction of tax at source from winnings from horse races:

(Both resident and non resident.)

Tax deductible at source from any income by winnings from the horse races at prescribes rates.

Deduction of tax at source can be made only In cases of where the income by way of winnings

from horse races to be paid to a person exceeds Rs.2500.00

Rate of Deduction:-

Nature of payment

Winnings from horse races

1) Where the payer is a baking company and interest is paid or payable

on time deposit.

Particulars

1

aggrega e amoun oes

not exceed Rs.10 lakh/1

crore

aggrega e amoun

exceed Rs.10 lakh/ 1

crore

aggregate amount oes


crore

aggregate amount


crore

Aggregate

amount10,000.00

2) Where the payer is a Co-operative engaged in carrying on the banking

business and interest is paid or payable on time deposit.

10,000.00

10,000.00

5,000.00



crore

aggregate amount


crore


20/49

Section 194C:- Deduction of tax at source from payments to contractors and sub-contractors

The Provision are given below:

Tax is required to be deducted at source where the amount credited or paid to a contractor

or sub contractor exceeds Rs.20000.00 in a single payment or Rs.50000.00 in the

aggregate during a financial year.

Rate of Deduction:-

Nature of paymentPayment made to contractor( in

case of advertising contractor)

Payment made to contractor(

other than advertising contractor)

Payment made to sub-contractor

Section 194I:- Deduction of tax at source from income by way of rent.

Any person (not being an individual or a HUF ) responsible for paying rent to a resident

is required to deduct tax at source under the provision of this section.No tax is

deductible if the amount of rent credited or paid during the financial year does not

exceeds Rs.120000.00

Rate of Deduction:-

Nature of payment

a) rent of plant , machinery or

equipment

b) rent of land, building orfurniture to an Individual and HUF

b) rent of land, building or

furniture to a person other than

an Individual and HUF

Section 194J:- Tax deduction at source on fees for professional or technical service.

Any person, who is responsible for paying to a resident any sum by way of fees for professional

service or fees for technical service or royalty shall deduct tax at source.

Where the amount of such sum or as the case may be the aggregate of the amount of such sums

credited or paid or likely to be credited or paid during the f inancial year does not exceeds

Rs.20000.00 tax is not deductible.

Rate of Deduction:-

Nature of payment

Professionla or technical service

rendered



crore

aggregate amount


crore

10.30% 11.33%

20.60% 22.66%

10.30% 11.33%

15.45% 16.995%



crore

aggregate amount


crore

1.03%

1.133%

1.133%

2.266%

1.03%

2.06%

aggregate amount oesnot exceed Rs.10 lakh/1

crore

aggregate amountexceed Rs.10 lakh/ 1

crore


21/49

MINIMUM ALTERNATIVE TAX (115JB)

Company

Rate of Income

Tax on Book

Profit Surcharge

Education

Cess

Secondary and

higher education

cess

Domestic Company 10% 10%*

2% of income

tax andsurcharge 1% of income taxand surcharge

Foreign Company 10% 2.5%**

2% of income

tax and

surcharge

1% of income tax

and surcharge

* If Book Profit exceed Rs. 1 Crore than surcharge 10%.

** If Book Profit exceed Rs. 1 Crore than surcharge 2.5%.

MAT: If tax liability of the company under normal provision is lower than than the 10% of Book profit

than such 10% of book profit shall be deemed as tax liability.

Here the book profit means

1) Following are the item to be added back to the profit and loss account if Debited.

Income tax paid or payable and the provision thereof, any amount carried to reserve, any amount

ser aside for metting the ascertained liabilities, amount by way of provision for losses for the

subsidary company, amount of dividend paid or propsed, any exempt expenditure, the amount

of depreciation and deferred tax and provision thereof.

2) Following are the item to be Deducted to the profit and loss account if credited.

Amount withdrawn from reserve, exempt income, Depreciation Debited to p& l account, amount of

loss (before depreciation) brought forward or unabsorbed depreciation which ever is less as per

books of account and amount of deferred tax and provision thereof.


22/49

Depreciation for the assessment year 2009-2010 as per Income tax

Section 32:- In order to claim depreciation an assessee has to fulfil the following conditions:-

1) The assets should be owned by the assessee.

2) The asset, in respect of which depreciation is claimed, must have been used for the

business purpose.

Number

a e oDepreciation

Block 1 Buildings : Residential buildings other than Hotels and Boarding House. 5%

Block 2 Buildings : Office, Factory , godowns, or buildings which are not mainly used for

residential purpose [ it covers hotels and boarding houses but does not cover those

which are covered under Block 1 and 3.

Block 3 Buildings : The following Buildings :

a. buildings aquired on or after September 1, 2002 for installing machinery and plant

forming part of water supply project or water treatment system and which is put to

use for the purpose of bussiness of providing infrastructure facilities under clause(i) of sub section (4) of section 80-IA.

Block 4 Furniture - Any furniture / fittings including electrical fittings. 10%

Block 5 Plant & Machinery - Any Plant & Machinery [ not covered by Block 6,7,8,9,10,11or 12]

and motor cars (other than those used in a business of running them on hire) aquired or

put to use on or after April 1, 1990.

Block 6 Ocean - going ships, vessels odinarily operating on inland waters including speed

boats

Block 7 Plant & Machinery :- Buses, Lories and taxies used in the business of running them on 30%hire

Block 8 Plant & Machinery: Aeroplanes 40%

Block 9 Plant & Machinery: Containers made of glass or plastice used as refiles and plant and 50%

machinery .

Block 10 Plant & Machinery: Computers including computer software, Book owned by the profess- 60%

ional( other than annual publication).

Block 11 Plant & Machinery: Energy saving device; renewal of energy device: rollers in flour mills, 80%

sugar works, and steel industries.

Block 12 Air Pollution control Equipment, water Pollution control Equipment, solid Pollution control 100%

Equipment etc.

Block 13 Intangible assets: Know how, Patents, copyrights, trademark, licence, Franchies and 25%

any other business or commercial rights of similar nature.

20%

Number of Asset

10%

100%

15%


23/49

Relevant SectionsSECTION 44AA: Maintenance of accounts by Persons.

SECTION 44AB: Audit of accounts by certain Persons.

1 A Person carrying on business:- If total sales, turnover or gross receipts of business for the

previous year (s) relevants to the asst. year exceeds Rs.40 lakhs .

2 A Person Carrying on Profession:- If his gross receipts in profession for the previous year(s)

relevants to the asst. year exceeds Rs. 10 lakhs.

3 A Person Covered under section 44AD, AE & AF:- If such person claims that the Profit and

gains from the business are lower than the profits and gains computed

under these section (irrespective to his turnover)

Due date for getting books audited/ submission of audit report and Form No.

Payers Audit Form No.

Particulars

books of accounts submission of audit

Corporate 3CA 3CD September 30th September 30th

Non-Corporate 3CB 3CD September 30th September 30th

SECTION 44AD: Computation of income on estimated basis in case of tax payers engaged in the

business of civil construction.:-

1) Section 44AD Provides for a method of estimating income from the business of civil construction

or supply of labour for civil construction work. The tax payer may be contractor or sub- contractor.

It is applicable to all assessees whose gross receipts from the above mentioned business do not

exceed Rs. 40 lakhs.

2) The income from the above- mentioned business will be estimated at 8% of gross receipts paid

or payable to assessee. A taxpayer can voluntarily declare a higher income in his return.

SECTION 44AE: Computation of income on estimated basis in case of tax payers engaged in the

business of Plying, leasing or hiring trucks.:-

1) Section 44AE Applies to person owning not more than 10 goods carriages at any time during

the previous year . For this purpose , an assessee who is in possession of a goods carriage,

wheather taken on hire purchase or on instalments and for which the whole or part of the amount

payable is still due , shall be deemed to be the owner of such goods carriages.

2) The Income from each goods carriage being a "heavy goods vehicle" shall be estimated at

Rs. 3500.00 for every month (or part of a month) during which the goods carriage is owned by the

assessee.


24/49

3) The Income from each goods carriage other than a heavy goods vehicle shall be estimated at

Rs. 3150.00 for every month (or part of a month) during which the goods carriage is owned by the

assessee.

SECTION 44AF: Computation of Profits and gains of retails business.

1) The Scheme is applicable in the case of an assessee who is engaged in retail trade in any goods

or merchandise . He may be an individual , HUF, Firm, Company or any other Taxpayer.

2) The turnover of the assessee does not exceed Rs. 40 lakh.

3) If the above two conditions are satisfied , then profits and gains of such business shall be

presumptively computed at 5% of the gross receipts , or as the case may be , a sum higher thanthe aforesaid sum as may be declared by the assessee in his return of income.

SECTION 43B: Certain expenses are deductible on payment basis.

1) any sum payable by way of tax, duty ,cess, or fee ( what ever name called under any law for the

time being in force.)

2) any sum payable by an employer by way of contribution to PF, Superannuation Fund or any other

fund for the welfare of the employees.

3) any sum payable as bonus or commission to employee for service rendered.4) any sum payable as interest on any loan or borrowing from a Public Financial Institution (ICICI,

IFCI, IDBI, LIC, And UTI) or a state Financial Corporation or a state Industrial investment corporation.

5) Interest on any loan or advance taken from a schedule bank including a co-opeartive bank ;

6) any sum payable by an employer in lieu of leave at the credit of his employee.

SECTION 40A(3) : Payment exceeding Rs. 20,000.00 paid otherwise than by account payee cheques

or Bank draft :

1) From the asst. year 09-10 , if the aggregate payment (otherwise than by way of account payeecheque /draft) to the same person during a day exceeds Rs. 20000.00 the provision of section

40A(3) Will apply and the entire amount of such payment will be disallowed.

Exceptions(Rule 6DD):

Following are the circumstances under which no disallowance will be made of the expenditure

even if the payment exceeding Rs.20000.00 is made otherwise than by an account payee cheque or

demand draft.

1) Payment made to banking and other credit institutions such as RBI, Commercial banks in the public

and private sector , co-operative banks or land mortgage banks, LIC.


25/49

2) Payment made to both central Govt and State Govt.

3) Payment through banking system I.e letters of credit, mails or telegraphic transfer, book adjustment

in same bank or between one bank with another, Bills of Exchange, Debit card and credit card.

4) Payment made by book adjustment by an assessee in the account of the payee against money

due to the assessee for any goods supplied or service rendered by him to the payee.

5) Payment to a cultivator, grower or producer.

SECTION 269SS: Mode of taking or accepting certain loans and deposits.

No person shall take or accept from any other person any loan or deposit otherwise than by an

account payee cheque or account payee bank draft if,-

1) the amount of such loan or deposit or the aggregate amount of such loan and deposit; or

2) on the date of date of taking or accepting such loan or deposit, any loan or deposit taken or

accepted earlier by such person from the depositor is remaining unpaid ( wheather repayment has

fallan due or not) the amount or the aggregate amount remaining unpaid; or

3) the amount or the aggregate amount referred to clause (a) together with the amount or the aggregate

amount referred to in clause (b) is Rs.20000.00 or more.

Provided that the provision of this section shall not apply to any loan or deposit taken or accepted

from or any loan or deposit taken or accepted by:-

(Annexture 1)

1) Government

2) any banking company, post office saving bank or co-operative bank;

3) any corporation established by a Central,State or Provincial Act.

4) any government Company as defined under section 617.

5) any other institution , association or body, or class of institution as prescribed by the

Central Govt.

SECTION 269T: Mode of Repayment certain loans and deposits.

No branch of banking company or a co-operative bank and no other company or co-operative society

and no firm or other person shall repay any loan or deposit made with it otherwise than by an account

payee cheque or account payee bank draft in the name of the person who has made the loan or

deposit if.

1) the amount of the loan or deposit together with the interest , if any payable thereon, or


26/49

2) the aggregate amount of a loan or deposit held by such person with the branch of the banking

company or co-operative bank or as the case may be, the other company or co-operative society or the

firm , or other person either in his own name or jointly with any other person on the date of such

repayment together with the interest , if any , payable on such loans or deposit, is twenty thousands

rupees or more.

Provided that nothing contained in this section shall apply to repayment of any loan or deposit taken

or accepted from. (Above annexure 1)


27/49


28/49


29/49


30/49


31/49


32/49


33/49


34/49


35/49


36/49


37/49


38/49


39/49


40/49


41/49


42/49


43/49


44/49


45/49


46/49


47/49


48/49


49/49

17054178 37 income tax ready reconer

Documents