|
Rate of Tax
*Minimum Exemption Limit Indl&HUF-1.6lacs ResiWomen-1.9lacs ResiSeniorCtzn-2.4lacs Upto 5Lac-10% Upto 8Lac-20% Above 8Lac-30% *Surchrge:only for domestic company7.5%of TI & foreign company2.5% of TI if total income EXCEEDS 1crore *Taxable LTCG 20% *STCG on Securities subject to SST 15% *Lottery Winning,Horse Races etc 30% *Cost Inflation Index-711 INCOME TAX *Rate of MAT u/s115JB is increased from 15% to 18% *Marginal Relief is allowed to Domestic & Foreign Company
WEALTH TAX *Wealth Tax@1% on taxable Net wealth in excess of Rs.30 Lac |
|
|
Amendment in Definition of Property for the purpose of Sec56(2)(vii)
*Definition of Property for Sec56(2)(vii) amended:- 1.Property=Only capital assets ¬ stock-in-trade,RawMaterial&consumable stores of business of recipient 2.Now,Bullion has also been included in movable property w.e.f. frm1.6.2010
*Sec142A(1)w.e.f.1.7.2010,A.O. can make reference to valuation officer forFMV for56(2) |
|
|
Example on Sec 56(2)(vii)
Mr.AD,a dealer in shares,recvd WITHOUT Consideration frm his friend Ms.DA-
1.Cash-75000 on Annivrsry 7.1.2011
2.Bullion,FMV-60000 on Bday 19.06.2010
3.Land on 1.7.2010,Stamp Value on that date-5Lacs. Mr.B purchased land inApril2005
Mr.AD purchased,from Mr.AK share broker,1000shares of SABC Ltd@400/-each on19.06.2010,FMV of which was600/-each on that date. Mr.AD sold it in course of his business on23.06.2010
On1.11.2010,Mr.AD took possession of Flat booked 2yrs back@20Lac.Stamp Value of property on1.11.2010 is 32Lacs.
On1.3.2011,he sold the land for 7Lac
Compute IOS &Capital Gain for AY2011-12.
Ans.
IOS 1.CashGift-Taxable75000 2.Bullion(w.e.f.1.6.2010if FMV>50000)Taxable60000 3.StampValue ofLand(WITHOUT Consideratn)Taxable500000 4.Difference of 2lacs not taxable coz shares are stock-in-trade for Mr.AD 5.Appreciation in value of immovable property between time of its booking & its actual regn is outside the scope of Sec56(2)(vii) Total IOS=635000
CAPITAL GAIN Sale Consideration7L - COA5L = STCG 2Lacs Period of holding of previous owner is not to be considered. |
|
|
Newly inserted Sec 56(2)(viia) & Related amendments..
NewSec56(2)(viia) Trf of shares without/inadequate consideratn to attract provision of 56(2)in case of recipient FIRM & COMPANIES also if FMV or DIFFERENCE exceed 50000
Exceptions to 56(2)(viia)-Trf of shares OF/TO a public company
ExemptedTransactions:47(via),(vic),(vicb),(vid),(vii)
RelatedAmendments *Sec2(24)Definition of Income now include money/property ofSec56(2)(vii)&(viia) *Sec49(4)forCapitalGain on trf of assets of 56(2)(vii)&(viia), COA=Value tkn in (vii)&(viia) |
|
|
Deductions from Gross Total Income
*Deduction from GTI
1.New ADDITIONAL Deduction(to INDIVIDUALS&HUF Only)u/s80CCF of Rs.20000(SEPARATE frm limit of Rs.1Lac u/s80CCE)for Investment in Notified LONG-TERM INFRASTRUCTURE BONDS.
2.Sec80D MediclaimPolicy or contri to C.GovtHealthScheme *Self,spouse,dependent children(aggregt):15000 *Parents(independnt/dependnt):15000,SeniorCitizen:20000 3.Sec80-IB(10) Relaxation of Condition for Housing Project approved ONLY on or after1.4.2005 *Earlier, max allowed built-up area for shop/commercial establishment included in housing project was 5%of total built-up area or 2000Sqft whichever is LOWER. But Now 3%or 5000sqft whichever is HIGHER *Time limit of completion of Housing Project, now extended from 4yrs to5yrs [This is an eligible deduction of 100%of profit from such project which are approvd before31.3.2008] 4.Sec80-ID Extension of terminal date for functioning of Hotel & Construction of Convention Centres from31.3.2010to31.07.2010 *5yrs tax holiday to New 2,3,4star & convention centre set up in National Capital Region in view of COMMONWEALTH GAMES in October2010 *Now,It should start functioning from1.4.2007to31.7.2010 |
|
|
Computaion of Profit & Gain of Non-Life Insurance Business (Rule5 of 1st Schedule to IncomeTax Act
*Computaion ofProfit&Gain ofNon-Life InsuranceBusiness(Rule5of 1st Sch.to IncomeTaxAct) Sec44r.w.Rule5-UnrealizedGain due2appreciation in value of investmnts wil nt b included in TI &UnrealizedLoss(i.e.Provision4diminution in value of investmnt)is not allowable as deductn
|
|
|
Sec.143(1B) Time Limit extended for issue of Notifications in respect of Centralised Processing of Returns
ASSESSMENT PROCEDURE Centralised Processing Centre (CPC) has been set-up at Bangalore for centralised processing of ITR. Now Central Government can issue notification upto 31.03.2011 to relax, modify or adopt any provision of law relating to processing of returns. (effective from 1.4.2010) |
|
|
Sec260A(2A) - High Court empowered to condone delay in filing of appeal
APPEALS
*Sec260A(2A) - High Court has & also had power to condone delay&admit appeal after expiry of 120days,if sufficient cause of delay (Retrospectv effect from1.10.1998)
*Same amendment in provision of Sec27A(1A)of WealthTaxAct,1957 |
|
|
Sec282B - Extension of date for issue of Document Identification Number
*Sec282B The date for implementation of issue of Documentation Identification Number(DIN)on each correspondence has deen extended to1.7.2011 (w.e.f. 1.10.2010) |
|
|
SETTLEMENT COMMISSION
For FINAL Students: SETTLEMENT COMMISSION (w.e.f.1.6.2010)
1.Sec.245(b)of I.TaxAct &Sec22A of WealthTaxAct Now,CASE will INCLUDE any proceeding4assessment/re-assessmnt as a result ofSEARCH/REQUISITION
2.Sec245C of IT Act Additional Amt ofTax payable on Income disclosed in application *if CASE is of Assessmnt ofSearch/Requisitn)-EXCEEDS 50Lacs *Other CASE-Addtn Amt EXCEEDS 10Lacs(earlier,3Lac)
3.Sec245(4A)of IT Act &Sec22D(4A) ofW.TaxAct Now,TimeLimit forOrder-18Months |
|
|
INCOME FROM SALARY - Notification No. 43/2010
INCOME FROM SALARY
N/N 43/2010 - For purpose of Calculation of Exemption of Gratuity u/s10(10) Max Limit upto23.05.2010=3.50Lacs On or after24.05.2010=10Lacs
|
|
|
nice info...thanks for sharing... |
|
|