Importan Tips - Accounts
-
Upload
thomasmundaplackal -
Category
Documents
-
view
232 -
download
0
Transcript of Importan Tips - Accounts
-
8/2/2019 Importan Tips - Accounts
1/15
Deductions from Gross Total Income available under chapter VIA are as follows:
Sec. Applicable to Condition(s) Deduction
80C Individual and HUFInvestment in LIC, PPF, NSC, etc.
*Maximum Rs.100000
80CCC IndividualDeposit in LIC or other insurer'sannuity plan
Maximum Rs.100000
80CCD Individual
Assesse has in the previous yearpaid or deposited any amount inhis/her account under a pensionscheme notified by the CentralGovernment.
In case of salaried individual:Aggregate of the amount paid ordeposited in such pension scheme:
By himself (to the maximum of10% of salary).
By the employer (to themaximum of 10% of salary)
Salary means Basic + DA, if the termsof employment so provide.In other cases: 10% of GTI
80CCE
Max. Deduction u/s 80C, 80CCC and 80CCD, in aggregate, cannot exceed Rs.100000.For A.Y. 2012-13, the limit is further enhanced by employer's contribution eligible for deductionu/s 80CCD (2). In other words, maximum deduction u/s 80C, 80CCC and 80CCD, in aggregate,cannot exceed [Rs.1,00,000 + Employer's Contribution to pension scheme referred u/s 80CCD(Subject to maximum of 10% of salary)]
80CCF Individual and HUFInvestment in long term infrastructurebond
Maximum Rs.20000
80D Individual & HUF
Paid medical insurance for relative byany mode other than cash from taxableincome.Note: Individual can also contribute tothe Central Government. HealthScheme for himself / spouse /dependent children
Maximum Rs.15000 / Rs.20000(in case insured is a seniorcitizen)(Additional Rs.15000 / Rs.20000for parents)
80DD
Resident
individual &resident HUF
Assesse has disabled dependentrelative.
Assesse deposited medicalcertificate along with return.
Rs.100000 for severedisability.
Rs.50000 for non-severedisability
80DDB
Residentindividual &resident HUF
Assesse himself or his relative issuffering from specified diseases
Assesse deposited medicalcertificate along with return.
Maximum [Rs.40000 - Mediclaimreceived orAmount reimbursed byemployer]
Where the patient is a senior citizen
Maximum [Rs.60000 - Mediclaimreceived orAmount reimbursed byemployer]
80E IndividualAssesse is repaying the interest on loan(taken for higher education).
Interest paid during the year fora maximum period of 8 years
80G All AssesseAssesse donated an amount (otherwisethan in kind) to specified organizationsor funds.
50% or 100% of amount donated(subject to limit applicable, ifany, on amount of donation)
80GG Individual
Assesse is paying rent. He or his relative has no house at
the place of employment of theAssesse.
He is neither receiving HRA nor hasclaimed any benefit for selfoccupied property.
Assesse submitted Form 10BAalong with return of income.
Minimum of the following:1. Rs.2000 p.m.2. 25% of Adjusted GTI3. Rent paid - 10% of adjusted
GTI
-
8/2/2019 Importan Tips - Accounts
2/15
80GGA
Any Assesse nothaving incomeunder the head"Profits & gains ofbusiness orprofession"
Assesse has contributed certainamount for rural development,scientific research, etc.
Amount so contributed.
80GGB
Indian Company
Assesse contributed an amount topolitical party or an electoraltrust
Amount so contributed
80GGC
All Assesse other
than localauthority orartificial juridicalperson, which iswholly or partlyfinanced by Govt.
Amount so contributed
80-IA Specified AssesseEngaged in specified business andsubject to other conditions
100% / 50% of profit of suchbusiness for certain years.
80-IAB All AssesseEngaged in the business of developingSEZ
100% of profit of such business
80-IB Specified AssesseEngaged in specified business andsubject to other conditions
100% / 50% of profit of suchbusiness for certain years.
80-IC All Assesse
Engaged in production of specified
article in Sikkim, Himachal Pradesh,Uttaranchal and North-Eastern States
100% / 25% / 30% of profit of
from such unit for certain years.
80-IDAll Assesse
Engaged in the business of hotel orconvention Centre in Delhi and nearby
100% of profit of such business
All AssesseEngaged in the business of hotel inspecified world heritage site
100% of profit of such business
80-IE All AssesseEngaged in the specified business inNorth-Eastern States
100% of profit of such business
80JJA All AssesseAssesse engaged in the business ofprocessing of bio-degradablewaste
100% of profit of such businessfor 5 years.
80JJAA
Indian companybeing a newindustrialundertakingengaged inproduction ofarticle or thing
Assesse employed more than 100new workmen in the first year and
increased 10% worker in 2nd and3rd year. A certificate (in Form 10DA) of
chartered accountant is to besubmitted signifying that deductionhas been correctly claimed.
30% of salary paid to newworkmen during such years.
80LA
A scheduled bank- Any other bankIncorporated by orunder the laws ofa country outsideIndia- Unit of an
InternationalFinancial ServicesCenter.
Assesse has a branch in SEZ. A certificate of chartered accountant
is to be submitted signifying thatdeduction has been correctly
claimed.
100% of income of suchbranch for 5 years; and
50% of income of such branchfor next 5 years.
80QQB
ResidentIndividual
Assesse is author of the specifiedbook.
He earned royalty income (whetherreceived in lump sum or otherwise).
A certificate from the payer in Form10CCD is to be submitted alongwith return of income.
In case income is earned outsideIndia, money must be brought into
Minimum of the following (as thecase may be): Royalty fee (to the maximum
of 15% of the value of thebook sold; or
Lump sum fee; Income brought into India in
convertible foreign exchange;or
-
8/2/2019 Importan Tips - Accounts
3/15
India in convertible foreignexchange and a certificate must beobtained from the prescribedauthority
Rs.300000
80RRB ResidentIndividual
Assesse is a patentee. He earned royalty income (whether
received in lump sum or otherwise). A certificate from the payer in Form
10CCE is to be submitted along with
return of income. In case income is earned outside
India, money must be brought intoIndia in convertible foreignexchange within 6 months from theend of the P.Y. and a certificatemust be obtained from theprescribed authority.
Minimum of the following (as thecase may be):
Royalty fee or Lump sum fee; Income brought into Indian in
convertible foreign exchange;or
Rs.300000
80UResidentIndividual
Assesse himself suffering fromdisabilities.
Medical certificate submitted alongwith return of income.
For severe disabilityRs.100000
For non-severe disabilityRs.50000
General Points1. Deductions under chapter VIA are not available from long-term capital gain, short term
capital gain covered u/s 111A (i.e., STCG on which STT is charged); and casual income likewinning from lotteries, races, etc.
2. The aggregate amount of deduction under chapter VIA cannot exceed Gross Total Income ofthe assesse excluding long-term capital gain, short term capital gain covered u/s 111A (i.e.,STCG on which STT is charged); and casual income like winning from lotteries, races, etc.
3. Deduction under chapter VIA shall be available only if the Assesse claims for it.4. Where deduction under any section of chapter VIA has been claimed then the same shall not
qualify for deduction in any other section.
*Applicable to
An Individual or a Hindu Undivided Family (whether resident or non-resident)
Condition to be satisfiedAssesse has made a deposit or an investment or expenditure in any one or more of theSpecified Items (click here for Specified items) during the previous year.Quantum of DeductionDeduction under this section shall be the minimum of the following:
Aggregate of the eligible contributions, expenditure or investments (click here forSpecified items)
Rs.100000Lock in PeriodLock in period in following cases:
Life Insurance Policy : The Life insurance policy cannot be surrendered unless premium
for 2 years on such policy has been paid. Housing Loan : The house acquired cannot be transferred before 5 years from the end of
financial year in which the possession of such property is obtained by assesse. Unit Linked Insurance Plan : The participation in plan cannot be ceased before
contribution in respect of such participation has been paid for 5 years. Shares or debentures of Infrastructure Company or Power Company or mutual fund :
Equity shares, debentures, etc. cannot be sold or otherwise transferred within 3 yearsfrom the date when name of the assesse for those shares or debentures has beenentered in the register of member or debenture holder by the company or the Mutualfund.
Investment in Senior Citizen Saving Scheme / Post office Time Deposit: Such amount,including interest accrued thereon, shall not be withdrawn by the assesse from his
-
8/2/2019 Importan Tips - Accounts
4/15
account, before the expiry of 5 years from the date of its deposit. However, any amountreceived by the nominee or legal heir of the assesse, on the death of such assesse, shallnot be included.
Consequence in case of violation of lock in periodIf the above lock in period is violated, then entire amount of deduction allowed earlier in anyprevious year, shall be treated as taxable income in the year in which default is made.
S.N Particulars RemarksApplicable to Individual & HUF both
1 Life insurance premium paid by aperson to effect or to keep inforce an insurance policy (life policy orendowment policy)
Insurance policy can be taken on life of the following: In case of an individual: Himself, spouse and child(whether major or minor)of such individual;
In case of HUF: Any member of the HUF.Maximum limit: Premium on insurance policy in excessof 20% of the actual sum assured shall be ignored.
2 Contribution made towards Publicprovident fund (PPF).
Subscription should be in the name of following persons: In case of individual: Such individual, his spouse and
child (whether major or minor); In case of HUF: Any member of HUF.
Contribution must not be in form of repayment of loan3 Subscription to any notified Government security or any notified deposit scheme i.e. National
Savings Scheme, 1992
4 Any subscription to National SavingsCertificates, VIII Issue If contribution is made in joint names, the person who
has contributed the money is eligible to claimdeduction.
An individual can claim deduction in respect ofcertificates purchased in the name of his spouse orminor child.
Treatment of accrued interest: Deduction is alsoavailable on accrued interest which is reinvested. i.e.,interest up to 5th year of investment is eligible fordeduction.
5 Contribution for participating in theUnit-linked Insurance Plan (ULIP) ofUnit Trust of India (UTI) or ULIP of LIC
Mutual fund u/s 10(23D)
Contribution can be made in the names of followingpersons:In case of individual: Such individual, spouse and child
(major or minor) of such individual;In the case of HUF: Any member of HUF.
6 Sums paid to effect or keep in force acontract for notified annuity plan ofthe LIC or any other insurer.
7 Subscription to notified units of aspecified Mutual fund u/s10(23D)/administrator or the specifiedcompany as referred in sec. 2 of UTI.
Equity Linked Saving Scheme, 2005.
8 Any sum paid as subscription to HomeLoan Account Scheme or notifiedpension fund of the National HousingBank.
9 Any sum paid as subscription to anotified deposit scheme.
Such deposit scheme shall be of - Public sector companies engaged in providing long-
term finance for construction or purchase of houses inIndia for residential purpose; or
Any authority constituted in India for the purpose ofsatisfying the need for housing accommodation or forthe purpose of planning, development orimprovement of cities, towns, villages or for both.
10 Any payment for purchase orconstruction of a residential houseproperty (the income from which ischargeable to tax under the head
Specified person includes -1. the Central or State Government; or2. any bank, including a co-operative bank; or3. the National Housing Bank; or
-
8/2/2019 Importan Tips - Accounts
5/15
"Income from house property"), byway of - any instalment due under any self-
financing or other scheme of anydevelopment authority, housingboard or other authority engaged inthe construction and sale of houseproperty on ownership basis; or
any instalment due to any company
or co-operative society of which theassessee is a shareholder ormember towards the cost of thehouse property allotted to him; or
repayment of the amount borrowedby the assessee from specifiedperson#
stamp duty, registration fee andother expenses for the purpose oftransfer of such house property tothe assessee
4. Life Insurance Corporation; or5. any public company formed and registered in
India with the main object of carrying on the businessof providing long-term finance for construction orpurchase of houses in India for residential purposes;or
6. any company in which the public are substantiallyinterested or any cooperative society, where suchcompany or co-operative society is engaged in the
business of financing the construction of house; or7. the assessee's employer where such employer isan authority or a board or a corporation or any otherbody established or constituted under a Central orState Act;
8. the assessee's employer where such employer is apublic company or public sector company, or auniversity established by law or a college affiliated tosuch university or local authority or co-operativesociety.
Notes: Any expenditure in respect of which deduction is
allowable u/s 24 is not eligible for deduction.
Repayments of loan borrowed for acquiringcommercial property are not entitled for deduction.
Repayment of loan taken for repair, alteration,renovation, addition are not eligible for deduction
16 Any amount invested in - Debentures of or equity shares in
an eligible issue of capital; or Eligible issue of capital of any public
financial institution.
Eligible issue of capital means an issue made by a publiccompany formed and registered in India or a publicfinancial institution and the entire proceeds of the issueare utilized wholly and exclusively for the purpose of anybusiness referred to in sec. 80IA(4).
17 Subscription to units of any mutualfund u/s 10(23D) provided amount ofsubscription to such units issubscribed only in the eligible issue ofcapital
18 Investment as term deposit for aperiod of 5 years or more with ascheduled bank.
Such term deposit scheme shall be framed and notifiedby the Central Government
19 Notified Bonds issued by the NationalBank for Agriculture and RuralDevelopment (NABARD)
20 Senior Citizens Savings Scheme Rules,2004
21 5 year time deposit in an accountunder the Post Office Time DepositRules, 1981
Applicable to Individual only1 Payment by an individual in respect ofnon-commutable deferred annuity.
Annuity may be taken in the name of the individual,spouse and any child of such individual.
Such contract does not contain a provision for theexercise by the insured of an option to receive a cashpayment in lieu of the payment of the annuity
2 Any sum deducted from salary of aGovernment employee for the purposeof securing to him a deferred annuityor making provision for his wife orchildren.
Maximum limit: 20% of salary of the employee
3 Contribution made towards statutoryprovident fund and recognized
Contribution must not be in form of repayment of loan
-
8/2/2019 Importan Tips - Accounts
6/15
provident fund.4 Contribution made towards an
approved superannuation fund.5 Contribution to any notified pension
fund set up by a Mutual Fund u/s10(23D) or by the administrator or thespecified company referred u/s 2 ofthe UTI
6 Any payment by way of tuition fees to
any university, college, school or othereducational institution situated withinIndia for the purpose of full-timeeducation.Restriction on number of child:Deduction shall be allowed in respectof maximum two children.
Admission fee: Tuition fees may be at the time of
admission or thereafterDonation to school, etc: Such payment does notinclude any payment towards any development fees ordonation or payment of similar nature.Private tuition fee is not covered.
Lock in Period
Lock in period in following cases:
Life Insurance Policy: The Life insurance policy (point 1) cannot be surrendered unless
premium for 2 years on such policy has been paid. Housing Loan: The house acquired (point 10) cannot be transferred before 5 years from
the end of financial year in which the possession of such property is obtained by assesse. Unit Linked Insurance Plan: The participation in plan (point 5) cannot be ceased before
contribution in respect of such participation has been paid for 5 years. Shares or debentures of infrastructure company or power company or mutual
fund: Equity shares, debentures, etc. (point 11) cannot be sold or otherwise transferredwithin 3 years from the date when name of the assesse for those shares or debentures hasbeen entered in the register of member or debenture holder by the company or the Mutualfund.
Investment in Senior Citizen Saving Scheme / Post office Time Deposit: Suchamount, including interest accrued thereon, shall not be withdrawn by the assesse from hisaccount, before the expiry of 5 years from the date of its deposit. However, any amountreceived by the nominee or legal heir of the assessee, on the death of such assessee, shallnot be included.
Consequence in case of violation of lock in periodIf the above lock in period is violated, then entire amount of deduction allowed earlier in anyprevious year, shall be treated as taxable income in the year in which default is made.
Basic elements of salary Payer and payee must have employer and employee (or Master & Servant) relationship; and Payment must have been made by the employer in such capacity.
Definition of Salary [Sec. 17(1)]As per sec. 17(1) of the Income-tax Act, 1961, salary includes the following:
Wages; Any annuity or pension; Any gratuity; Any fees, commission, perquisite or profits in lieu of or in addition to any salary or wages; Any advance of salary; Any payment received in respect of any period of leave not availed of by the assessee; The portion of the annual accretion in any previous year to the balance at the credit of an
employee, participating in recognised provident fund, to the extent it is taxable; Transferred balance in a Recognised Provident Fund to the extent it is taxable. Contribution made by the employer in the previous year, to the account of an employee
under a pension scheme referred to in sec. 80CCD.Basis of charge [Sec. 15]
-
8/2/2019 Importan Tips - Accounts
7/15
Salary is chargeable to tax either on 'due' basis or on 'receipt ' basis, whichever is earlier.Place of accrual of salarySalary which is received in India or earned in India shall be taxable in hands of all assesseewhether resident or nonresident in India . Salary is deemed to be earned in India provided -
The service is rendered in India ; The rest period or leave period, which is preceded and succeeded by the service rendered in
India and forms part of the service contract of employment.Exception: Salary paid to a Government employee, being a citizen of India, is deemed to accrue in
India , irrespective of place of work [Sec.9(1)(iii)].
Computation of salary, at a glanceComputation of income under the head 'Salaries' of ....... for the A.Y. ..........
Particulars Details Amount Amount
Basic Salary ****Salary - General ****Fees ****Commission ****Bonus ****Gratuity ****Leave Encashment ****Pension ****
Retrenchment Compensation ****Compensation received under Voluntary Retirement Scheme ****Allowances:
Dearness Allowance (DA) /Dearness Pay (DP) ****House Rent Allowance ****Children Education Allowance ****Hostel Expenditure Allowance ****Entertainment Allowance ****Medical Allowance ****Conveyance Allowance ****City Compensatory Allowance ****Uniform Allowance ****Professional Development Allowance ****
Transport Allowance ****Other Allowances **** ****Perquisites u/s 17(2) Any Obligation of Employee paid by Employer ****Accommodation ****Shares and securities issued under ESOP ****Employer's Contribution to Superannuation Fund in excess ofRs.1,00,000/-
****
Insurance premium ****Medical Facility ****Other fringe benefits **** ****Leave Travel Concession ****
Contribution of Employer to Provident Fund ****Interest on Recognized Provident Fund ****Any other item ****Gross Salary ****
Less : Deduction u/s 16(ii) Entertainment Allowance ****(iii) Tax on employment/Professional tax **** ****Taxable Salary ****
Basic Salary: Fully taxable in all cases.Dearness Allowance (DA) or Dearness Pay (DP): Fully taxable whether forming part of retirement
benefits or not.Fees: Fully taxable in all cases.
-
8/2/2019 Importan Tips - Accounts
8/15
Commission: Fully Taxable.Bonus: Contractual bonus is taxable as bonus whereas voluntary bonus is taxable as perquisite.Annuity [Sec. 17(1)(ii)]Annuity means a yearly allowance, income or the grant of an annual sum for life or in perpetuity.While annuity payable by a present employer is taxable as salary even if, it is received voluntarilywithout any contractual obligation of the employer, whereas an annuity received from anexemployer is taxed as profit in lieu of salary' u/s 17(3)(ii). Annuity received from a person otherthan employer e.g. from insurer, etc. is taxable u/s 56 as Income from other sources'.Treatment: Fully taxable.Salary received in lieu of notice periodWhen an employer retrenches an employee then he will have to give a proper notice. If anemployer fails to do so then he will have to pay salary equivalent to notice period, apart fromretrenchment compensation. Such amount is known as salary received in lieu of notice period.Treatment: Fully taxable in the year of receipt.Profits in lieu of salary [Sec.17(3)]Following receipts are taxable as profits in lieu of salary:
The amount of any compensation due to or received by an assessee from his employer orformer employer or in connection with the (a)
termination of his employment, (b) modification of the terms and conditions of employment. Any payment due to or received by an assessee from his employer or former employer
except the following:1. Gratuity exempted u/s 10(10);
2. House rent allowance exempted u/s 10(13A);3. Commuted pension exempted u/s 10(10A);4. Retrenchment compensation exempted u/s 10(10B);5. Payment from an approved Superannuation Fund u/s 10(13);6. Payment from statutory provident fund or public provident fund;7. Payment from recognised provident fund to the extent it is exempt u/s 10(12).
Any payment from unrecognized provident fund or such other fund to the extent to which itdoes not consist of contributions by the assesse or interest on such contributions.
Any sum received by the employee under the Keyman Insurance Policy including the sumallocated by way of bonus on such policy.
Any amount received (in lump sum or otherwise) prior to employment or after cessation ofemployment
Depreciation Rates (Income Tax - WDV Method)
Block of assets Rate(%)
Building
Buildings which are used mainly for residential purposes except hotels and boardinghouses
5
Buildings other than those used mainly for residential purposes and not covered bysub-items (1) above and
(3) below
10
Buildings acquired on or after the 1st day of September, 2002 for installing machineryand plant formingpart of water supply project or water treatment system and which is put to use for thepurpose of business ofproviding infrastructure facilities under clause (i) of sub-section (4) of section 80-IA
100
Purely temporary erections such as wooden structures 100Furniture and fittings
Furniture and fittings including electrical fittings 10Machinery and Plant
Machinery and plant other than those covered by sub-items (2), (3) and (8) below 15Motor cars, other than those used in a business of running them on hire, acquired or 15
-
8/2/2019 Importan Tips - Accounts
9/15
put to use on or after the 1st day of April, 1990Aeroplanes - Aeroengines 40Motor buses, motor lorries and motor taxis used in a business of running them on hire 30Commercial vehicle which is acquired by the assessee on or after the 1st day ofOctober,1998, but before the 1st day of April, 1999 and is put to use for any periodbefore the 1st day of April, 1999 for the purposes of business or profession inaccordance with the third proviso to clause (ii) of sub-section (1) of section 32 [SeeNote 6]
40
New commercial vehicle which is acquired on or after the 1st day of October, 1998,
but before the 1st day of April, 1999 in replacement of condemned vehicle of over 15years of age and is put to use for any period before the 1st day of April, 1999 for thepurposes of business or profession in accordance with the third proviso to clause (ii) ofsub-section (1) of section 32
60
New commercial vehicle which is acquired on or after the 1st day of April, 1999 butbefore the 1st day of April, 2000 in replacement of condemned vehicle of over 15years of age and is put to use before the 1st day of April, 2000 for the purposes ofbusiness or profession in accordance with the second proviso to clause (ii) of sub-section (1) of section 32
60
New commercial vehicle which is acquired on or after the 1st day of April, 2001 butbefore the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 forthe purposes of business or profession
50
New commercial vehicle which is acquired on or after the 1st day of January, 2009 but
before the 1st day of October, 2009 and is put to use before 1st day of October, 2009for the purposes of business or profession
50
Moulds used in rubber and plastic goods factories 30Air pollution control equipment, being:Electrostatic precipitation systemsFelt-filter systems, Dust collector systems, Scrubber-counter current / venture / packedbed / cyclonic scrubbers, Ash handling system and evacuation system
100
Water pollution control equipment, being:Mechanical screen systems,Aerated detritus chambers (including air compressor)Mechanically skimmed oil and grease removal systems,Chemical feed systems and flash mixing equipment,Mechanical flocculators and mechanical reactors,
Diffused air/mechanically aerated activated sludge systemsAerated lagoon systems, Biofilters,Methane-recovery anaerobic digester systemsAir floatation systems,Air/steam stripping systemsUrea Hydrolysis systems, Marine outfall systemsCentrifuge for dewatering sludgeRotating biological contractor or bio-discIon exchange resin column,Activated carbon column
100
Solidwaste, control equipment being - caustic/lime/ chrome/mineral/cryoliterecovery systems
100
Solidwaste recycling and resource recovery systems 100Machinery and plant, used in semi-conductor industry covering all Integrated Circuits
(ICs)(excluding hybrid integrated circuits) ranging from Small Scale Integration (SSI) toLarge Scale Integration/Very Large Scale Integration (LSI/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than thosecovered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below
30
Life saving medical equipment, being:D.C. Defibrillators for internal use and pace makersHaemodialysors, Heart lung machine, Cobalt Therapy UnitColour Doppler, SPECT Gamma Camera,Vascular Angiography System including Digital Subtraction Angiography,Ventilator used with anaesthesia apparatus,Magnetic Resonance Imaging System, Surgical Laser,Ventilator other than those used with anaesthesia,Gamma knife, Bone Marrow Transplant Equipment including silastic long standing
40
-
8/2/2019 Importan Tips - Accounts
10/15
intravenouscatheters for chemotherapy,Fibre optic endoscopes including,Paediatric resectoscope/audit resectoscope, Peritoneoscopes,Arthoscope, Microlaryngoscope,Fibreoptic Flexible NasalPharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, VideoLaryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope,Fibreoptic Flexible Oesophago GastroscopeLaparoscope (single incision)Containers made of glass or plastic used as re-fills 50Computers including computer software 60Machinery and plant, used in weaving, processing and garment sector of textileindustry, which is purchased under TUFS on or after the 1st day of April, 2001 butbefore the 1st day of April, 2004 and is put to use before the 1st day of April, 2004
50
Machinery and plant, acquired and installed on or after the 1st day of September,2002 in a water supply project or a water treatment system and which is put to use forthe purpose of business of providing infrastructure facility under clause (i) of sub-section (4) of section 80-IA
100
Wooden parts used in artificial silk manufacturing machineryCinematograph films - bulbs of studio lightsMatch factories - Wooden match frames
Mines and quarries :Tubs winding ropes, haulage ropes and sand stowing pipes 100Safety lampsSalt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy orclayeymaterial or any other similar material
100
Flour mills - RollersIron and steel industry - Rolling mill rollsSugar works - Rollers
80
Energy saving devices, being -Specialised boilers and furnaces :Ignifluid/fluidized bed boilersFlameless furnaces and continuous pusher type furnaces 80
Fluidized bed type heat treatment furnacesHigh efficiency boilers (thermal efficiency higher than 75 percent in case of coal firedand 80 per cent in case of oil/gas fired boilers)Instrumentation and monitoring system for monitoring energy flowsAutomatic electrical load monitoring systeDigital heat loss metersMicro-processor based control systemsInfra-red thermographyMeters for measuring heat losses, furnace oil flow, steam flow, electric energy andpower factor metersMaximum demand indicator and clamp on power metersExhaust gases analyzerFuel oil pump test benchWaste heat recovery equipment:Economisers and feed water heatersRecuperators and air pre-heatersHeat pumpsThermal energy wheel for high and low temperature waste heat recoveryCo-generation systems:Back pressure pass out, controlled extraction, extraction-cumcondensing turbines forco-generation along with pressureboilersVapor absorption refrigeration systems 80Organic rankine cycle power systemsLow inlet pressure small steam turbinesElectrical equipment:
80
-
8/2/2019 Importan Tips - Accounts
11/15
Shunt capacitors and synchronous condenser systemsAutomatic power cut-off devices (relays) mounted on individual motorsAutomatic voltage controllerPower factor controller for AC motorsSolid state devices for controlling motor speedsThermally energy-efficient stenters (which require 800 or less kilocalories of heat toevaporate one kilogram of water)Series compensation equipmentFlexible AC Transmission (FACT) devices - Thyristor controlled series compensationequipmentTime of Day (ToD) energy metersEquipment to establish transmission highways for National Power Grid to facilitatetransfer of surplus power of one region to the deficient regionRemote terminal units/intelligent electronic devices, computer hardware/software,router/bridges, other required equipment and associated communication systems forsupervisory control and data acquisition systems, energy management systems anddistribution management systems for power transmission systemsSpecial energy meters for Availability Based Tariff (ABT)Burners:0 to 10 per cent excess air burnersEmulsion burners 80Burners using air with high pre-heat temperature (above 300Other equipment :
Wet air oxidation equipment for recovery of chemicals and heatMechanical vapour recompressorsThin film evaporatorsAutomatic micro-processor based load demand controllersCoal based producer gas plantsFluid drives and fluid couplingsTurbo charges/super-chargesSealed radiation sources for radiation processing plantsGas cylinders including valves and regulatorsGlass manufacturing concerns - Direct fire glass melting furnaces
60
Mineral oil concerns:Plant used in field operations (above ground) Returnable packagesPlant used in field operations (below ground), but not including kerbside pumpsincluding underground tanks and fittings used in field operations (distribution) bymineral oil concerns
60
Renewable energy devices being -Flat plate solar collectorsConcentrating and pipe type solar collectorsSolar cookersSolar water heaters and systemsAir/gas/fluid heating systemsSolar crop driers and systemsSolar refrigeration, cold storages and air conditioning systemsSolar steels and desalination systemsSolar power generating systemsSolar pumps based on solar-thermal and solar-photovoltaic conversionSolar-photovoltaic modules and panels for water pumping and other applicationsWind mills and any specially designed devices which run on wind millsAny special devices including electric generators and pumps running on wind energyBiogas-plant and biogas-enginesElectrically operated vehicles including battery powered or fuel-cell powered vehiclesAgricultural and municipal waste conversion devices producing energyEquipment for utilising ocean waste and thermal energyMachinery and plant used in the manufacture of any of the above sub-items
80
Books owned by assesses carrying on a professionalBooks, being annual publicationsBooks, other than those covered by entry (a) above
10060
Books owned by assesses carrying on business in running lending libraries 100
-
8/2/2019 Importan Tips - Accounts
12/15
Ocean-going ships including dredgers, tugs, barges, survey launches and other similarships used mainly for dredging purposes and fishing vessels with wooden hull
20
Vessels ordinarily operating on inland waters, not covered by sub-item (3) below 20Vessels ordinarily operating on inland waters being speed boats 20INTANGIBLE ASSETS
Know-how, patents, copyrights, trademarks, licenses, franchises or any otherbusiness or commercial rights of similar nature
25
New Income Tax Return Forms
FORMS A.Y. 2010-11 FORMS A.Y. 2011-12
ITR 1
For Individuals having Incomefrom Salary / Pension / Incomefrom One House Property(excluding loss brought forwardfrom previous years) / Incomefrom Other Sources (ExcludingWinning from Lottery and Incomefrom Race Horses.
ITR-1SAHAJ
Indian Individual Income taxReturn
ITR 2For Individuals and HUFs nothaving Income from Business orProfession
ITR 2For Individuals and HUFs nothaving Income from Business orProfession
ITR 3
For Individuals/HUFs beingpartners in firms and not carryingout business or profession underany proprietorship
ITR 3
For Individuals/HUFs beingpartners in firms and not carryingout business or profession underany proprietorship
ITR 4For individuals & HUFs havingincome from a proprietarybusiness or profession
SUGAM(ITR-4S)
Sugam -Presumptive BusinessIncome tax Return
ITR 5 For firms, AOPs and BOIs ITR 4For individuals and HUFs havingincome from a proprietorybusiness or profession
ITR 6For Companies other thancompanies claiming exemption
under section 11
ITR 5 For firms, AOPs and BOIs
ITR 7
For persons including companiesrequired to furnish return undersection 139(4A) or section139(4B) or section 139(4C) orsection 139(4D)
ITR 6For Companies other thancompanies claiming exemptionunder section 11
ITR 8 Return for Fringe Benefits ITR 8
For persons including companiesrequired to furnish return undersection 139(4A) or section 139(4B)or section 139(4C) or section139(4D)
ITR V
Where the data of the Return ofIncome in Forms Saral-II (ITR-1),
ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6transmitted electronically withoutdigital signature.
ITR V Acknowledgement
TDS Ready Reckoner
-
8/2/2019 Importan Tips - Accounts
13/15
Sec.Nature ofpayment
Personresponsibleto deduct tax
RecipientTime ofdeduction
RateofTDS
Maximumpayment uptowhich tax shallnot bededucted
192 Salary Employer Employee At the time of paymentAverage rateof tax
Basic Exemption Limit
193Interest onsecurities
Payer ofinterest onsecurities
Residentperson
At the time ofpayment orcrediting thepayee, whicheveris earlier
10%Rs.2500 (Subjectto certainconditions)
194Dividendu/s 2(22)(e)
DomesticCompany
Residentperson
At the time ofpayment
10%
Rs.2500 (Subjecttocertainconditions)
194AInterestother thaninterest onsecurities
Any personother thanindividual andHUF whoseaccounts arenotrequired to beaudited duringimmediatelyprecedingprevious year
Residentperson
At the time of
paymentor crediting thepayee,whichever isearlier
10%
Rs.5000 (Subjecttocertainconditions)(Rs.10000 incase ofBank FDR)
194B
Winningfromlotteries,etc.
Any personpaying suchincome
Anyperson
At the time ofpayment
30%Rs.5000(Rs.10000 w.e.f.01/07/2010)
194BBWinningfrom horseraces
Any personpaying suchincome
Any
person
At the time of
payment30%
Rs.2500(Rs.5000 w.e.f.01/07/2010)
194C Contract
Any specifiedpersonincludingindividual andHUF whoseaccountsare required tobe auditedduringimmediately
precedingprevious year
Residentperson
At the time ofpaymentor crediting thepayee,whichever isearlier
PayeeisIndividualorHUF :1%Other
payee:
2%
a) Rs.20000(providedaggregateamount paidduring thefinancial yeardoes not exceedRs.50000)(Rs.30000 andRs.75000 w.e.f.01/07/2010) b)Payment to Roadtransportoperator if theyprovides PAN
194DInsuranceCommission
Any person 10%Rs.5000(Rs.20000 w.e.f.01/07/2010)
194E Sportsperson
Any personpayingspecifiedincome
Non-residentforeigncitizensportsmanor sports
At the time ofpaymentor crediting thepayee,whichever isearlier
10% Nil
-
8/2/2019 Importan Tips - Accounts
14/15
association
194EEDeposit inNSS
Post officeAnyperson
At the time ofpayment
20% Rs.2500
194FUnits ofMutualfund/UTI
Mutual fund orUTI
Unitholder u/s80CCB
At the time ofpayment
20% Nil
194G
Commission
on sale oflotterytickets
Any personpaying
commission onsale of lotterytickets
Anyperson
At the time ofpayment
or crediting thepayee,whichever isearlier
10% Rs.1000
194HOthercommission
Any personother thanindividual andHUF whoseaccounts arenotrequired to beaudited duringimmediately
preceding P.Y.
Residentperson
At the time ofpaymentor crediting thepayee,whichever isearlier
10%Rs.2500 (Rs.5000w.e.f.01/07/2010)
194I Rent
Any personother thanindividual andHUF whoseaccounts arenotrequired to beaudited duringimmediatelypreceding P.Y.
Residentperson
At the time ofpaymentor crediting thepayee,whichever isearlier
Plant &Mach:2%OtherAsset:10%
Rs.120000(Rs.180000 w.e.f.01/07/2010)
194J
Professionalortechnicalservice
Any personother than
individual andHUF whoseaccounts arenotrequired to beaudited duringimmediatelyprecedingprevious year
Residentperson
At the time ofpaymentor crediting thepayee,whichever isearlier
10%Rs.20000(Rs.30000 w.e.f.01/07/2010)
194LA
Compensation forCompulsoryacquisitionofimmovableproperty(other thanagro land)
Any personresponsible for
suchpayment
Resident
At the time ofpaymentin cash or bycheque ordraft or by othermode, whicheveris earlier.
10% Rs.100000
195 Any sum
Any personpaying anyamountchargeableunder this Act
Non-resident
At the time ofpaymentor crediting thepayee,whichever isearlier
SpecifiedRates
Nil
196B Unitsincome
Any personresponsible for
AnOffshore
At the time ofpayment
10% Nil
-
8/2/2019 Importan Tips - Accounts
15/15
paymentreferred insec.115AB
fundor crediting thepayee, whicheveris earlier
196C
Foreigncurrencybonds orGDR
Any personresponsible forpaymentreferred insec.115AC
Non-resident
At the time ofpaymentor crediting thepayee,whichever isearlier
10% Nil
196D Any income
Any personresponsible forpaymentreferred in sec.115AD(1)(a)
ForeignInstitutional Investor
At the time ofpayment orcrediting thepayee,whichever isearlier
20% Nil
Accounting Standards (ASs)
AS 1 Disclosure of Accounting Policies AS 2 Valuation of Inventories. AS 3 Cash Flow Statements AS 4 Contingencies and Events Occurring after the Balance Sheet Date AS 5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting
Policies AS 6 Depreciation Accounting AS 7 Construction Contracts (revised 2002) AS 8 Accounting for Research and Development AS 9 Revenue Recognition AS 10 Accounting for Fixed Assets AS 11 The Effects of Changes in Foreign Exchange Rates (revised 2003), AS 12 Accounting for Government Grants AS 13 Accounting for Investments AS 14 Accounting for Amalgamations AS 15 (revised 2005) Employee Benefits Limited Revision to Accounting Standard (AS) 15, Employee Benefits (revised 2005) AS 15 (issued 1995)Accounting for Retirement Benefits in the Financial Statement of
Employers AS 16 Borrowing Costs AS 17 Segment Reporting AS 18, Related Party Disclosures AS 19 Leases AS 20 Earnings Per Share AS 21 Consolidated Financial Statements AS 22 Accounting for Taxes on Income.
AS 23 Accounting for Investments in Associates in Consolidated Financial Statements AS 24 Discontinuing Operations AS 25 Interim Financial Reporting AS 26 Intangible Assets AS 27 Financial Reporting of Interests in Joint Ventures AS 28 Impairment of Assets AS 29 Provisions, Contingent` Liabilities and Contingent Assets AS 30 Financial Instruments: Recognition and Measurement and Limited Revisions to
AS 2, AS 11 (revised 2003), AS 21, AS 23, AS 26, AS 27, AS 28 and AS 29 AS 31, Financial Instruments: Presentation Accounting Standard (AS) 32, Financial Instruments: Disclosures, and limited revision
to Accounting Standard (AS) 19, Leases.