Copy of Important Tax Provisions(07-08)

8/7/2019 Copy of Important Tax Provisions(07-08)

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Important Tax Provisions (07Important Tax Provisions (07--

08)08)CACAMehul ShahMehul ShahB. Com, F.C.A., DISA (ICAI).B. Com, F.C.A., DISA (ICAI).

# : 25100861; 67982380# : 25100861; 67982380Email : [email protected] : [email protected]


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AgendaAgenda

Income deemed to accrueor ariseinIndiaIncome deemed to accrueor ariseinIndia

Taxability ofsome transactionsTaxability ofsome transactions

Deductions / allowancesDeductions / allowances

Setoffcarry forward oflossesSetoffcarry forward oflosses


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Scope of Total IncomeScope of Total Income

Section 5Section 5

Resident.World IncomeResident.World Income

Resident butnot OrdinaryResident butnot OrdinaryResident..Income deemed toResident..Income deemed toaccrueor ariseinIndia (unlessaccrueor ariseinIndia (unlessfrom businesscontrolled inorfrom businesscontrolled inorprofessionsetup inIndia)professionsetup inIndia)

NonNon--Resident. IncomeResident. Incomedeemed to accrueor ariseindeemed to accrueor ariseinIndiaIndia


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Residential StatusResidential Status

Section 6Section 6

Basic ConditionsBasic Conditions eitherof thefollowing:eitherof thefollowing:

Stay inIndia for 182 daysormoreStay inIndia for 182 daysormore

Ifstayed for 365 daysormorein precedingfourIfstayed for 365 daysormorein precedingfourprevious yearsprevious years stay inIndia for 60 daysormorestay inIndia for 60 daysormore

IfproceedingforemploymentIfproceedingforemployment instead of60 daysinstead of60 days 182182daysormoredaysormore

IfCitizenofIndia or PIO comeson a visit toIndiaIfCitizenofIndia or PIO comeson a visit toIndia --instead of60 daysinstead of60 days 182 daysormore182 daysormore


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Residential StatusResidential Status

Not Ordinary ResidentNot Ordinary Resident

Additional ConditionsAdditional Conditions Both theconditionsBoth theconditions

NonNon--residentinnineoutof ten previous yearsresidentinnineoutof ten previous years

Duringseven preceding previous years,inIndia forDuringseven preceding previous years,inIndia for729 daysorless729 daysorless


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Income deemed to accrue or ariseIncome deemed to accrue or arise

in Indiain India Section 9Section 9

.from any businessconnectioninIndia.from any businessconnectioninIndia

.from any property inIndia.from any property inIndia

.from any assetorsourceofincomeinIndia.from any assetorsourceofincomeinIndia

.from transferofcapital assetinIndia.from transferofcapital assetinIndia


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in Indiain India Export toIndia ofGoods.NoExport toIndia ofGoods.No

Purchaseofgoodsforexport (importfromPurchaseofgoodsforexport (importfrom

India.NoIndia.No

NonNon--residentnews agency forcollectingnewsresidentnews agency forcollectingnewsand views.Noand views.No

Shootingofany cinematograph film.NoShootingofany cinematograph film.No(subject tosomeconditions)(subject tosomeconditions)


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in Indiain India Salariesifearned inIndia.yesSalariesifearned inIndia.yes

Condition.Services arerenderedCondition.Services arerendered inin IndiaIndia

Exception.Salary paid by Government toException.Salary paid by Government to

CitizenofIndia forservicesrenderedCitizenofIndia forservicesrenderedoutsideIndiaoutsideIndia


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in Indiain India Interestonforeignfunds deployed.YesInterestonforeignfunds deployed.Yes

Dividend paid by anIndian CompanyDividend paid by anIndian CompanyoutsideIndia.Yes (subject to 115outsideIndia.Yes (subject to 115--O)O)

Royalty paid for businessRoyalty paid for businessinin India.YesIndia.Yes(subject toconditions)(subject toconditions)


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Taxability of some transactionsTaxability of some transactions

Someimportantexemptions.Someimportantexemptions.

Section 10 (10)Section 10 (10) -- Gratuity.Gratuity. To a GovernmentEmployee.fully exemptTo a GovernmentEmployee.fully exempt

Received as provided under the PaymentofReceived as provided under the PaymentofGratuity Act .fully exemptGratuity Act .fully exempt

Other Gratuity basis monthssalary ofOther Gratuity basis monthssalary ofcompleted yearsofservicecompleted yearsofservice Maximum RS.Maximum RS.350,000.350,000.


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Some important exemptions.Some important exemptions.

Section 10 (10A)Section 10 (10A) Commuted Pension.Commuted Pension.

To a GovernmentEmployee.fully exemptTo a GovernmentEmployee.fully exempt

Otheremployees.Otheremployees.

IfGratuity Received.1/3IfGratuity Received.1/3rdrd ofCommuted ValueofCommuted Value

Otherwise ofCommuted ValueOtherwise ofCommuted Value


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Section 10 (10AA)Section 10 (10AA) LeaveSalary.LeaveSalary. To a GovernmentEmployee.fully exemptTo a GovernmentEmployee.fully exempt

Otheremployees.TenmonthsSalary subjectOtheremployees.TenmonthsSalary subjecttomaximum RS. 300,000 (life timeof thetomaximum RS. 300,000 (life timeof the

Assessee).Assessee).

Section 10 (10C)Section 10 (10C)Voluntary Retirement.Voluntary Retirement. Maximum RS. 500,000Maximum RS. 500,000


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Section 10 (10D)Section 10 (10D) LifeInsurance PolicyLifeInsurance Policy Exemptunless.Exemptunless.

Any sumreceived on policy u/s. 80DDor 80DDAAny sumreceived on policy u/s. 80DDor 80DDA

(dependent handicapped).(dependent handicapped). Ifdeductionunder thesesectionsnot taken?Ifdeductionunder thesesectionsnot taken?

Any sumreceived under Keymaninsurance policyAny sumreceived under Keymaninsurance policy

Any sumreceived on a policy where premiumisAny sumreceived on a policy where premiumismore than 20% ofsuminsured (excepton deathmore than 20% ofsuminsured (excepton deathoftheinsured).oftheinsured).


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Section 10 (13A)Section 10 (13A) HRA.HRA. Metro CitiesMetro Cities

Lowerof thefollowing:Lowerof thefollowing: Actual AmountActual Amount

Rent paid inexcessof10% ofsalaryRent paid inexcessof10% ofsalary

50% ofsalary50% ofsalary

Other CitiesOther Cities Lowerof thefollowing:Lowerof thefollowing:

Actual AmountActual Amount

Rent paid inexcessof10% ofsalaryRent paid inexcessof10% ofsalary

40% ofsalary40% ofsalary

Salary = Basic + DA + Commissiononfixed %Salary = Basic + DA + Commissiononfixed %


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Section 10(14)Section 10(14) Other AllowancesOther Allowances Transport AllowanceofRS. 800 permonthTransport AllowanceofRS. 800 permonth

ChildrenEducation Allowance RS. 100 perChildrenEducation Allowance RS. 100 per

month perchild up to twochildrenmonth perchild up to twochildren Hostel Allowance RS. 300 permonth perchildHostel Allowance RS. 300 permonth perchild

up to twochildrenup to twochildren

Medicalreimbursementup to RS. 15,000Medicalreimbursementup to RS. 15,000notcovered by thissectionnotcovered by thissection


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Section 10 (16)Section 10 (16) Scholarship granted forScholarship granted foreducation.Stipend?education.Stipend?

Section 10 (34)Section 10 (34) Dividendsreferred toinDividendsreferred toinsection 115section 115--OO

Dividendsfrom CoDividendsfrom Co--op. Bank / Societyop. Bank / Society

Dividendsu/s. 2 (22) (e)Dividendsu/s. 2 (22) (e)


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Section 10 (35)Section 10 (35) IncomefrommutualIncomefrommutualfundsfunds

Capital Gainson transferofunitsnotcoveredCapital Gainson transferofunitsnotcovered

Section 10 (37)Section 10 (37) Transferofan UrbanTransferofan UrbanAgricultural LandAgricultural Land

Gain arisingoncompulsory acquisitionGain arisingoncompulsory acquisition


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Section 10 (38)Section 10 (38) Capital Gainon TransferCapital Gainon TransferofEquity sharesorEquity Oriented MutualofEquity sharesorEquity Oriented MutualFundsFunds

STT paid..STT paid..

buy back ofshares..buy back ofshares..

Other Capital Gains....Other Capital Gains....


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Capital GainsCapital Gains

Short TermShort Term Normalrate.Normalrate. ExceptSTT paid ST gainExceptSTT paid ST gain 10% (u/s. 111A)10% (u/s. 111A) --

Deductionunderchapter VIDeductionunderchapter VI--A not allowedA not allowed Sharesofunlisted companiesSharesofunlisted companies period of12 monthsperiod of12 months

or 36 months.or 36 months. .. or any listed securitiesinserted with effectfrom.. or any listed securitiesinserted with effectfrom

01.04.1994.01.04.1994.

Long TermLong Term 20% subject toindexation20% subject toindexation Deductionunderchapter VIDeductionunderchapter VI--A not allowedA not allowed

Index for Financial Year 2006Index for Financial Year 2006--0707 519519


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Cost of AcquisitionCost of Acquisition

Original CostOriginal Cost

CostofimprovementCostofimprovement

Expenditureinconnectionwith transferExpenditureinconnectionwith transfer reducereducefromsaleconsiderationfromsaleconsideration

CostofpreviousownerCostofpreviousowner Indexation?Indexation?

STT paidSTT paid not partofcostnot partofcost


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Capital GainsCapital Gains

Section 50CSection 50C -- Stamp duty valuation deemed toStamp duty valuation deemed tobesaleconsiderationbesaleconsideration amount to bereferred inamount to bereferred innewreturnsnewreturns AIR.AIR.

.not applicable to Builders.not applicable to Builders

Exemptionsundersection 54Exemptionsundersection 54 Housevs. HouseHousevs. House

Exemptionsundersection 54FExemptionsundersection 54F Housevs. OtherHousevs. Othercapital asset (maximum two houses permittedcapital asset (maximum two houses permittedpostnew acquisition)postnew acquisition)


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SalariesSalaries

Effectof Retrospective amendment by theEffectof Retrospective amendment by theFinance Act 2007 tosection 17.RentfreeFinance Act 2007 tosection 17.Rentfree

AccommodationAccommodation

15% ofSalary.15% ofSalary.

Explanation 1Explanation 1 -- ConcessionConcession deemeddeemed to haveto havebeen provided ifbeen provided if

Valuation Rule 3 (1) remainsValuation Rule 3 (1) remains


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Income from House PropertyIncome from House Property

Intereston borrowed CapitalIntereston borrowed Capital

SelfoccupiedSelfoccupied Maximum RS. 150,000 (ifloanMaximum RS. 150,000 (ifloanprior to 01/04/1999prior to 01/04/1999 RS. 30,000RS. 30,000

Let Out PropertyLet Out Property Any amountAny amount

Deemed to Let OutDeemed to Let Out Any amountAny amount

Municipal TaxesMunicipal Taxes allowed as deductionallowed as deductionprovided actually paid by theownerprovided actually paid by theowner


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Income from Other SourcesIncome from Other Sources

Sumreceived withoutconsideration (gift)Sumreceived withoutconsideration (gift)exceeding RS. 50,000 in aggregateexceeding RS. 50,000 in aggregate

Somethingreceived in kind.?Somethingreceived in kind.?

Exceptions:Exceptions: Fromrelative.Fromrelative.

OnoccasionofmarriageoftheindividualOnoccasionofmarriageoftheindividual

WillorinheritanceWillorinheritance

ContemplationofdeathContemplationofdeath Local AuthorityLocal Authority

Fund registered undersection 10 (23C)Fund registered undersection 10 (23C)

Trustregistered undersection 12AATrustregistered undersection 12AA


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Relative.of individualRelative.of individual

Spouse (clubbing provisionsu/s. 64)Spouse (clubbing provisionsu/s. 64)

BrotherorsisterBrotherorsister

BrotherorsisterofspouseBrotherorsisterofspouse BrotherorsisterofparentsBrotherorsisterofparents

Lineal ascendantor descendantLineal ascendantor descendant

Lineal ascendantor descendantofspouseLineal ascendantor descendantofspouse Spouseofabove persons (except 1Spouseofabove persons (except 1stst))


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What about us?What about us?

Giftreceived by an HUFGiftreceived by an HUF

Giftreceived from Mothers parentsGiftreceived from Mothers parents

Chandla / Shikh received by parentsofChandla / Shikh received by parentsof

brideor bridegroombrideor bridegroom


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Income from other SourcesIncome from other Sources --

DeductionsDeductions

57 (iia)57 (iia) -- Family pensionfromemployerFamily pensionfromemployer deduction allowed to thefamily membersdeduction allowed to thefamily membersonlyonly

Pensionreceived on annuity planofanPensionreceived on annuity planofaninsurerinsurer notcovered here.notcovered here.


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Profits and Gains of BusinessProfits and Gains of Business

Section 28 (iv)Section 28 (iv) valueofany benefitorvalueofany benefitorperquisite,whetherconvertibleinmoneyperquisite,whetherconvertibleinmoneyornotornot Foreign trip sponsored by the principalForeign trip sponsored by the principal GiftsonoccasionoffestivalsGiftsonoccasionoffestivals

Remunerationreceived by a professionalRemunerationreceived by a professionaldirectordirector section 309 of the Companiessection 309 of the CompaniesAct 1956Act 1956


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DepreciationDepreciation

BuildingBuilding 10% (Residentialuse10% (Residentialuse 5%)5%)

Plant and MachineryPlant and Machinery 15%15%

ComputersComputers 60%60%

FurnitureFurniture -- 10%10% Motorcar (includingforeigncars)Motorcar (includingforeigncars) 15%15%

Computerfitted in plant and machinery?Computerfitted in plant and machinery?

EntitlementofAdditional depreciation (subject toEntitlementofAdditional depreciation (subject toconditions)conditions)

Setoffof taxes / duties.reducefromcostofassetSetoffof taxes / duties.reducefromcostofasset


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DisallowancesDisallowances

40(a) (i)40(a) (i) Interest,royalty, FTS paidInterest,royalty, FTS paidoutsideIndia withoutmaking TDSoutsideIndia withoutmaking TDS allowed as deductionin the yearofallowed as deductionin the yearof

making paymentofTDSmaking paymentofTDS

40(a) (iii)40(a) (iii) Salary paid outsideIndiaSalary paid outsideIndia

withoutmaking TDSwithoutmaking TDS not allowednot allowed asasdeductionevenin the yearofmakingdeductionevenin the yearofmakingpaymentofTDSpaymentofTDS


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40(a) (ia)40(a) (ia) Interest,commission, ProfessionalInterest,commission, Professionalfees (includingroyalty and FTS), Payment tofees (includingroyalty and FTS), Payment toContractors / subContractors / sub--contractors, and rentwithoutcontractors, and rentwithout

making TDSmaking TDS allowed as deductionin the yearallowed as deductionin the yearofmaking paymentofTDSofmaking paymentofTDS

40(a) (ib)40(a) (ib) STTSTT

40 (a) (ii)40 (a) (ii) Foreign taxes allowable ascreditForeign taxes allowable ascredit


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PartnershipsPartnerships 40 (b)40 (b)

Interestoncapital allowed @ 12%Interestoncapital allowed @ 12%

Remunerationsubject tolimitsRemunerationsubject tolimits

Above payments asspecified inAbove payments asspecified inpartnership deedpartnership deed


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Section 40A (3)Section 40A (3) PaymentsotherwisePaymentsotherwisethen by way ofthen by way ofaccount payeeaccount payee cheques /cheques /draftsdrafts-- Hitof20% disallowanceHitof20% disallowance

Fromnext year 100% disallowanceFromnext year 100% disallowance RuleRule6DDrecent amended6DDrecent amended nosavingclausenosavingclauseforresiduary reasonsforresiduary reasons


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THE MICRO,SMALL AND MEDIUMTHE MICRO,SMALL AND MEDIUMENTERPRISESDEVELOPMENT ACT, 2006ENTERPRISESDEVELOPMENT ACT, 2006

http://www.smallindustryindia.com/MSME

Dhttp://www.smallindustryindia.com/MSME

D--Act.htmAct.htm

An act to provideforfacilitating the promotionAn act to provideforfacilitating the promotionand development and enhancing theand development and enhancing the

competitivenessofmicro,small and mediumcompetitivenessofmicro,small and mediumenterprises and formattersconnected therewithenterprises and formattersconnected therewithorincidental thereto.orincidental thereto.


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WHEREAS a declaration as toexpediency ofWHEREAS a declaration as toexpediency ofcontrolofcertainindustries by the Unionwascontrolofcertainindustries by the Unionwasmadeundersection 2 of theIndustriesmadeundersection 2 of theIndustries

(Development and Regulation) Act, 1951;(Development and Regulation) Act, 1951;

AND WHEREASitisexpedient to provideforAND WHEREASitisexpedient to provideforfacilitating the promotion and development andfacilitating the promotion and development and

enhancing thecompetitivenessofmicro,smallenhancing thecompetitivenessofmicro,smalland mediumenterprises and formattersand mediumenterprises and formattersconnected therewith orincidental theretoconnected therewith orincidental thereto


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Section 15 / 16Section 15 / 16 Buyerunderobligation to payBuyerunderobligation to payforgoods / serviceswithin 45 days.else payforgoods / serviceswithin 45 days.else payinterest as per the bank ratespecified byinterest as per the bank ratespecified byReserve Bank ofIndiaReserve Bank ofIndia

Section 23Section 23 -- Notwithstanding anythingcontainedNotwithstanding anythingcontainedin theIncomein theIncome--tax Act, 1961, the amountoftax Act, 1961, the amountofinterest payableor paid by any buyer,underorinterest payableor paid by any buyer,underor

in accordancewith the provisionsof this Act,in accordancewith the provisionsof this Act,shallnot,for the purposesofcomputationofshallnot,for the purposesofcomputationofincomeunder theIncomeincomeunder theIncome--tax Act, 1961, betax Act, 1961, beallowed as deduction.allowed as deduction.


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Section 43BSection 43B

Deduction allowed on actual Payment (onorDeduction allowed on actual Payment (onorbefore the due dateoffiling Return)before the due dateoffiling Return)

Any Tax, duty,cessAny Tax, duty,cess

Contribution to providentfund,superannuationfund,Contribution to providentfund,superannuationfund,gratuity fundgratuity fund

Bonusor LeaveSalaryBonusor LeaveSalary

Interest to Banks and FIson termloansInterest to Banks and FIson termloans

Leaveencashment. ExcideIndustriesLeaveencashment. ExcideIndustries Calcutta HCCalcutta HC-- amendmentcarried out by government as arbitraryamendmentcarried out by government as arbitraryand struck itoutand struck itout-- doesnotinvolve publicmoneydoesnotinvolve publicmoney


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Section 43BSection 43B

Employeescontribution to PF continues to beEmployeescontribution to PF continues to begoverned by section 36 (1) (va)governed by section 36 (1) (va) added toadded toincomeifnot paid within thestatutory limitsofincomeifnot paid within thestatutory limitsof

thoselawsthoselaws

ESIC notcovered by section 43Bso as TDSESIC notcovered by section 43Bso as TDSmade / Staffprofession Taxmade / Staffprofession Tax

Any unpaid interest to FI / Bank converted intoAny unpaid interest to FI / Bank converted intoloanloan not allowed as deduction (New)not allowed as deduction (New)


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Presumptive TaxationPresumptive Taxation

44AD44AD CivilconstructionCivilconstruction 8% ofGrossreceipts8% ofGrossreceipts Turnovernot toTurnovernot to

exceed RS. 40 Lac.exceed RS. 40 Lac.

44AE44AE PlyingofTrucksPlyingofTrucks Should notownmore than 10 trucksShould notownmore than 10 trucks

Turnovernot a criteriaTurnovernot a criteria Heavy Goodsvehicle RS. 3,500 p. m.Heavy Goodsvehicle RS. 3,500 p. m.

Light Goods Vehicle RS. 3,150 p. m.Light Goods Vehicle RS. 3,150 p. m.


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Presumptive TaxationPresumptive Taxation

44AF44AF RetailersRetailers

5% of turnover5% of turnover -- Turnovernot toexceed RS.Turnovernot toexceed RS.40 Lac.40 Lac.

Assessee beingfirmentitled to deductionAssessee beingfirmentitled to deductionofinterest and remuneration additionallyofinterest and remuneration additionally

in all presumptivecasesin all presumptivecases


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Set off / carry forward of lossesSet off / carry forward of losses

SequenceSequence Inter headInter head Intra headIntra head BroughtforwardBroughtforward Carry forwardCarry forward

SalarySalary XX

House PropertyHouse Property Any headAny head Salary and BusinessSalary and Business againstwhich head to besetagainstwhich head to beset

offfirst?offfirst?


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BusinessBusiness any head exceptsalariesany head exceptsalaries

Broughtforward businesslossBroughtforward businessloss business profitsonlybusiness profitsonly

Unabsorbed depreciationUnabsorbed depreciation any headany head

CapitalgainsCapitalgains CapitalgainsonlyCapitalgainsonly

Long temlossLong temloss long termgainsonlylong termgainsonly

OthersourcesOthersources Any headAny head carry forward notcarry forward notpermittedpermitted


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Effectofsection 78 and 79Effectofsection 78 and 79

Partnership.retirementor death ofa partnerPartnership.retirementor death ofa partner losslossproportionate toshareofsuch partnernot allowedproportionate toshareofsuch partnernot allowed

IfreductioninSOP beforeretirement and thenretire.IfreductioninSOP beforeretirement and thenretire.

Company (closely held).changeinshareholdingCompany (closely held).changeinshareholdingmore than 51%more than 51% -- entirelossnot allowedentirelossnot allowed

positionwith respect tolast daypositionwith respect tolast day

Constitutionof51% restored innext yearConstitutionof51% restored innext year

Funding a lossmakingcompany by anothergroupFunding a lossmakingcompany by anothergroup


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Deductions under chapter VIDeductions under chapter VI--AA

Maximum deductionMaximum deduction to theextentofGTIto theextentof GTI

Section 80C / 80CCCSection 80C / 80CCC maximum RS. 100,000maximum RS. 100,000

Specified fixed depositsofbankscovered in 80CSpecified fixed depositsofbankscovered in 80C

80D80D Maximum RS. 10,000 (Senior Citizen 15,000)Maximum RS. 10,000 (Senior Citizen 15,000) limitsraised from Assessment Year 2008limitsraised from Assessment Year 2008--09.09. HUF paying premiumforSenior Citizen.higher amount.HUF paying premiumforSenior Citizen.higher amount. payment by Individualfor dependent parentswho areseniorpayment by Individualfor dependent parentswho aresenior

citizens.citizens.


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Deductions under chapter VIDeductions under chapter VI--AA

80E80E Education LoanEducation Loan Only interest allowed with effectOnly interest allowed with effectfrom Assessment Year 2006from Assessment Year 2006--07.interestonloanfor07.interestonloanforrelative allowed from Assessment Year 2008relative allowed from Assessment Year 2008--0909

Section 80GGSection 80GG Rent paid for house (subject tolimits)Rent paid for house (subject tolimits)

Section 80JJASection 80JJA employmentofnewworkmen (subjectemploymentofnewworkmen (subjecttoconditions)toconditions)

ManufacturerManufacturer Deductionof30% ofadditionalwagesfor three AssessmentDeductionof30% ofadditionalwagesfor three Assessment

YearsYears


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Fringe Benefit TaxFringe Benefit Tax

Travelingchanged to 5%Travelingchanged to 5% -- Stay expenses?Stay expenses?

Expenditureon distributionoffreeExpenditureon distributionoffreesamples and equipments to doctorssamples and equipments to doctorsspared.so asexpenditureon Brandspared.so asexpenditureon Brand

AmbassadorAmbassador

Book profitundersection 115JBBook profitundersection 115JB deductionofFBTdeductionofFBT


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Fringe Benefit TaxFringe Benefit Tax

Clauses (aa), (ab), (da), (db) inserted inClauses (aa), (ab), (da), (db) inserted insubsub--section (2) ofsection 115WCsection (2) ofsection 115WC

Carriage by aircraftorshipCarriage by aircraftorship HospitalityHospitalityreduced to 5%reduced to 5%

Carriage by aircraftorshipCarriage by aircraftorship hotelexps.hotelexps.reduced to 5%reduced to 5%


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MATMAT Section 115JBSection 115JB

IfIT payableis < 10% (earlier 7.5%) ofbook profit, taxIfIT payableis < 10% (earlier 7.5%) ofbook profit, taxpayable @ 10% (earlier 7.5%) ofbook profit.payable @ 10% (earlier 7.5%) ofbook profit.

Long term profitonsharesexemptundersection 10 (38)Long term profitonsharesexemptundersection 10 (38)not to beexcluded from book profit.not to beexcluded from book profit.

Depreciationon Revaluationofassets hit by MATDepreciationon Revaluationofassets hit by MAT to beto beadded back.amountofrevaluationreservecredited toadded back.amountofrevaluationreservecredited to

P & L to beexcludedP & L to beexcluded

Effectof ASEffectof AS--2222


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MATMAT Section 115JBSection 115JB

Penalty paid / interestundersection 234A / B / C.reductionoutofPenalty paid / interestundersection 234A / B / C.reductionoutofbook profitbook profit

115JAA115JAA Tax credit allowed forsevenconsecutive assessmentTax credit allowed forsevenconsecutive assessmentyears.years.

Section 115BBCSection 115BBC AnonymousDonationsAnonymousDonations Taxed at 30%Taxed at 30% BifurcationofExpensesBifurcationofExpenses

Applicationfor RegistrationofTrustApplicationfor RegistrationofTrust

Ratesoftax and Interest.Homework?Ratesoftax and Interest.Homework? CalculationofInterestCalculationofInterest--Additionalreductions permittedAdditionalreductions permitted

Foreign Tax Credit U/s. 90/90A.Foreign Tax Credit U/s. 90/90A. 115JAA Credit115JAA Credit


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Copy of Important Tax Provisions(07-08)

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