DIRECT TAX READY REFERENCE

(COVERING BUDGET 2009-2010)

A TAX STRUCTURE - INCOME 1 IND/HUF/AOP/BOI-Basic Exemption --->

For PRIVATE CIRCULATION ONLY

From 100000 Next 40000 Next 10000 Next 90000 Next 50000 Next 250000 Rest
## Basic Exemption:

upto upto upto upto upto upto -

110000 150000 160000 250000 300000 500000 -

2007-08 2008-09 2009-10 2010-11 ADVANCE IT : (if liability = or > 10000) 100000## 110000## 150000## 150000## Due Date Company Other than company 10+0.2%* Nil Nil Nil By 15th june upto 15% 10+0.2%* 10+0.3%* Nil Nil By 15th Sep upto 45% upto 30% 20+0.4%* 20+0.6%* 10+0.3% Nil By 15th Dec upto 75% upto 60% 20+0.4%* 20+0.6%* 10+0.3% 10+0.3% By 15th March 100% 100%
30+0.6%** 30+0.6%** 30+0.6%** 135000 30+0.9%** 30+0.9%** 145000 10+0.3% 20+0.6% 180000 10+0.3% 20+0.6% 30+0.9% 190000 COST INFLATION INDEX :

Return Due Date u/s 139(1) From Asst year 2008-09 1. Non-corporate assessee or a working partner of a firm (where books are reqd to be audited) & Corporate Assessee 2. Any other assessee 3. Return of Loss-139(3) 4. belated return-139(4) Due Date

DEPRECIATION

AY 06-07 upto 05-06 onwards

Sept 30 of the asst year

PLANT & MACHINERY 25% FURNITURE & FIXTURE 15% COMPUTERS BUILDINGS Non RESIDENTIAL 10% 5% 60%

15% 10% 60% 10% 5% 100% 15% 30%

30+0.9%** 30+0.9%**

Resident Woman below 65 yrs

Senior Citizen, 65 yrs or above 185000 195000 225000 240000 ** Surcharge of 10% if net income exceeds Rs 10 Lac (AY 06-07 to 09-10) before EC/SHEC included above 2 REGD.FIRM 3 DOMESTIC COMPANY REGULAR TAX MAT (Section 115JB) C/F of MAT Credit 4 TAX ON LONG TERM CAPITALGAIN (with indexation benefit)
30+3.66%

30+0.9%# 30+0.9%# 10+0.3%# 10 years

30+0.9%# 30+0.9%# 10 years

30+0.9% 30+0.9%# 10 years

30+3.66% 10+1.22% 10 years

10+0.3%# 15+0.45%#

#if net income exceeds Rs 1.0 Crore: 1) Surcharge of 10% before EC(2%)+SHEC(1%) included above 2) Marginal relief of tax exceeding income

# Plus S/C as applicable

20+SC+EC% 20+SC+Cess% 20+SC+Cess%
20+Cess%

IND/HUF/AOP/BOI DOMESTIC CO./FIRM

22.44%

20+0.6%#

20+0.6%#

20+0.6%#

Notes: 1) Tax on LTCG can be taken as 10%+SC+Cess in case of transfer of listed shares/securities/units without indexation benefit 2) Income from LTCG is exempt in case of transfer of equity shares/units of equity oriented fund which are liable to STT

1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95

100 109 116 125 133 140 150 161 172 182 199 223 244 259

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

281 305 331 351 389 406 426 447 463 480 497 519 551 582

July 31
within due date

RESIDENTIAL

Purely Temp Erections100%

CAR & VEHICLES 20% 1yr from the CAR OR VEHICLES USED end of asst yr ON HIRE 40%

Note: Filing of Return by Corporate Assessee / Firm is compulsory

Only 50% Depre. will be allowed if assets acquired / used for < 180days

Tax Deducted at Source: 1)Deposit of TDS to Govt a/c to be made within 7 days from the end of the month in which provision for TDS is made and within 2mths(7days for salary) if provision for TDS is made at the end of financial year. 2) Filing of return in computer media mandatory for Company, Govt deductor, those who r covered u/s 44AB, assessee with no. of deductors>50 (qtrly); 3) Returns to be filed quarterly in F/24Q (Salary) or F/26Q (others) within 15 days from the end of quarter (76 days in case of last quarter); 4) TDS certificate to be made in Form 16/12BA for Salary, F/16A for others; 5) For lower deduction the recipient may apply to AO in F/13 or a declaration may be made in form 15G/15H (for Int./Div./NSS only), 15I (for transport contractor); 6) PAN data of deductees should be minimum 95% for 24Q & 85% for 26Q.
TDS Liability(wef 01.10.09)

5 TAX ON S T CAPITAL GAIN (ON TRANSFER OF SECURITIES-SEC 111A) B DEDUCTIONS & REBATES a General Deduction b Mediclaim
(otherwise than cash)

10+SC+EC% 10+SC+EC% 15+0.45%# 15+0.45%#

#if net income exceeds Rs 1.0 Crore: 1) Surcharge of 10% before EC(2%)+SHEC(1%) included above 2) Marginal relief of tax exceeding income

80C/80CCC/80CCD

80D

100000 10000

100000 15000

100000 15000*

100000 15000*

IMPORTANT PROVISIONS: a) Transfer of a property to non-relative Ind/HUF without consideration or less than stamp duty value (immovable) or less than FMV (movable) is chargeable to tax in the hands of transferee u/sec 56(2)(vii) wef 01.10.2009 [maximum relief Rs 50,000] b) Remuneration to partners 40(b)- Fin Yr 2009-10: Book Profit Allowability

Rate 10.00%

TDS Liability(wef 01.10.09)

Rate 1.00% 2.00%

for Sr. Citizen Rs.15,000/- wef AY 2000-01 & Rs. 20,000 wef AY 2008-09 *Additional Deduction for Mediclaim of Parents Rs 15,000 (Rs 20,000 in respect of Sr. Citizen)

Interest > 5000 pa [Rs 10000 in case of pymt of banks/PO] - Sec 194A

*Contractor / Ind/HUF---> Subcontractor Others ----> >20000 Sec 194C (single) or

Commission or Brokerage <0 Rs 150000 24(a) 30% 30% 30% 30% 30% 30% >2500 pa -Sec 194H higher of 150000 or 90% (in case of rented House Property) < or = Rs 300000 Fees for Prof or Technical d Int on borrowed capital 24(b) 150000* 150000* 150000* 150000* on Balance 60% Services > 20000pa - Sec c) Certain eligible assessee not required to maintain (in case of self occupied House Property) 194J book of accounts, not required to pay advance tax, if Dividend u/s 2(22)(e) > 2500 *30000 Generally (higher deductions are allowable only where the capital is borrowed after 01.04.99 and property is c Standard Deduction acquired/constructed within 3yrs from the end of FY in which capital was borrowed.) C CARRY FORWARD & SET-OFF OF LOSSES: Set-off
Same Head
another head

10.00% 10.00% 10.00%

*[transport Operator - Nil if PAN furnished]

Rent - Plant & Machinery >1,20,000 pa - 194-I

Rent - Land / Building / Furniture / Fittings >1,20,000 pa - 194-I Compensation on acquisition of certain immovable properties194LA Insurance Commission - 194D

2.00% 10.00%

* except Salaries
1. Salaries 2. House Property 3. Speculation Business / Specified Bus. 35AD Ubabs. Depreciation / Cap Exp on SR/FP Non-speculative Business or Profession 4. Long Term Capital Gains Short Term Capital Gains 5. Owning / Maintaining race horses Lotteries / Crossword Puzzles etc. Income from Other Sources (except if exempt) D WEALTH TAX [IND / HUF / CO] Exemption

Carry Forward & Set-off C/F Years agst whom No Yes Yes Yes Yes Yes Yes Yes No No NA 8 years 4 years No limit 8 years 8 years 8 years 4 years NA NA Exemption NA same head same item any income same head same item same head same item NA NA Tax

Yes Yes No Yes Yes No Yes No No Yes Tax

Yes Yes No Yes Yes* No No No No Yes GIFT TAX

there turnover/gross receipts does not exceed Rs 40 pa - Sec 194 10.00% Lac and they show income @8% (wef: Fin Year 2010winning from lottery / horse 30.00% 11) race etc - 194B/BB d) AO can include any other issue [not mentioned in 10.00% 148(2)] during assessment u/sec 147 Note:w.e.f. 01.04.2010 furnishing of PAN to deductor, in 15G/H/I and to AO for lower dedn. is mandatory - noever TDS will be higher of 20% or prescribed or in force INTEREST ON INCOME TAX: 1.Filing of return after due mth from the end of Due date u/sec 234A Date for filing of return Int @ 1% pm or part of the 2.Defaults in pymt of mth from the 1st day of Advance Tax u/s 234B April of the AY
Int @ 1% pm or part of the mth on the deficit amt as applicable Int @ 1% pm or part of the 4.Interest for late pymt of mth from the end of 30 days demand u/s 156 of Demand Notice Int @ 1% pm or part of mth 4.Failure to deduct and pay from the date on which tax TDS u/s 201(1A) was deductible Int @ 1% pm or part of the

Important Prescribed Forms under Income Tax Rules 1962 Return of Income & FBT 1. corporate assessee 2. Firms, AOPs and BOIs
3. Person reqd. to furnish return u/s 139(4A) / (4B) / (4C) / (4D)

Form No. ITR-6 ITR-5 ITR-7 ITR-8 ITR-V 49A 49B Form BA 10DB/10DC 26AS 280

Return of Income 1. Individual with Salary & Int 2. Ind/HUF without Busi/Prof 3. Ind/HUF being partners in firm (without prop.Busi/Prof)

Form No. ITR-1 ITR-2 ITR-3

3.Deferment in pymt Advance Tax u/s 234C

of

4.Return for Fringe Benefits 5.Manual Form for no DS Other Forms 1. PAN Application

4. Ind/HUFwith prop.Busi/Prof ITR-4 Appeal 1. To CIT(Appeals)-2copies 35 2. To ITAT - 3copies 3. Memorandum of cross objection to ITAT-3 copies 4. To ITAT-to refer to High Court any question of law Charitable & Religious Trusts 1. Appln for regn 10A 36 36A 37 3 copies

wef FY 1995-96 wef FY 2009-10

15 lac 1% FY 1995-96 to 1998-99 30000 30% 30 lac 1% (Abolished from 01/10/98) GIFT(wef Gift received by an Ind. or HUF (and in kind wef 01.10.2009) without consideration 01.04.06) from a non-relative above Rs 50,000 in a FY is entirely taxable as Income
1st year 2nd Year 3rd Year 4th Year 5th Year 6th Year

E Interest NSC (on every Rs 1000)

31.03.1989-31.12.1998 01.01.1999-14.01.2000

124.0 118.3

139.0 132.3

156.0 148.0

175.0 165.4

197.0 185.1

224.0 206.9

2. TAN Application Some Tax Saving cum Investment Schemes: 8% 6 year NSC Investment and accrued 3. Wealth Tax Return compounde interest qualify for tax VIII issue 4. STT pymt evidence d half yearly deduction u/sec 80C 5. Annual Tax Statement 15 yr Public compound Inv qualify for tax Challans Provident int 8% per deduction u/sec 80C;Int 1. Income Tax Fund yr exempt u/sec 10(11)

15.01.2000-28.02.2001 01.03.2001-28.02.2002 01.03.2002-28.02.2003 01.03.2003 and after

113.0 97.2 92.0 81.6

125.8 106.7 100.5 88.3

140.0 117.1 109.7 95.5

155.8 128.5 119.8 103.3

173.5 141.0 130.9 111.7

193.1 154.7 142.9 120.8

15 yr Public Provident Fund

2. TDS/TCS Tax Challans Life Insurance rate of Bonus is totally exempt; 3. Misc Direct Taxes bonus keeps Inv Premium qualify for tax 4. Fringe Benefit Tax on deduction u/sec 80C
fluctuating

compound int 8% per yr

Inv qualify for tax deduction u/sec 80C;Int exempt u/sec 10(11)

281 282 283

2.Appln for approval/ cont inuance u/s 80G(5)(vi) 3. Notice for accumulation of Income to AO

10G 3 copies 10

Note: I)The above chart does not cover the provisions related to Non-resident assessee and Foreign Company ii) reference to year wherever appears represents asst year unless otherwise specified. Important Links: Income Tax Site: http://www.incometaxindia.gov.in For Income Tax e-Return Filing: http://incometax-indiaefiling.gov.in For PAN/TAN related matters: www.tin-nsdl.com or www.utitsl.co.in