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Amendments Direct Tax
Amendments Direct Tax
Amendments brought in by the Finance Act, 2011 (A) Amendments made in Income-tax Act Rates of income-tax for assessment year 2012-13
Tax on total income of an assessee is chargeable at the following two types of rates: (1) Normal rates (2) Special rates prescribed under Chapter XII and XII-A of the Income Tax Act, 1961. 1. Normal Rates of Income Tax (A) In the case of every Individual or Hindu undivided family or AOP/BOI (other than a co-operative society) whether incorporated or not, or every artificial judicial person Upto ` 1,80,000 ` 1,80,001 to ` 5,00,000 ` 5,00,001 to ` 8,00,000 Above ` 8,00,000 Nil 10% 20% 30%
II. In the case of every individual, being a woman resident in India, and below the age of sixty years at any time during the previous year. Upto ` 1,90,000 ` 1,90,001 to ` 5,00,000 ` 5,00,001 to ` 8,00,000 Above ` 8,00,000 Nil 10% 20% 30%
III. In the case of every individual, being a resident in India, who is of the age of 60 years or more at any time during the previous year. [Senior citizen] Upto ` 2,50,000 ` 2,50,001 to ` 5,00,000 ` 5,00,001 to ` 8,00,000 Above ` 8,00,000 Nil 10% 20% 30%
IV. In the case of every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year. [Very senior citizen] Upto ` 5,00,000 ` 5,00,001 to ` 8,00,000 Above ` 8,00,000 Nil 20% 30%
Note : No surcharge is payable by the above assessees. Education Cess @ 2%, and Secondary and Higher Education Cess (SHEC) @ 1% on income tax shall be chargeable. (B) In the case of every co-operative society (1) where the total income does not exceed ` 10,000 (2) where the total income exceeds ` 10,000 but does not exceed ` 20,000 (3) where the total income exceeds ` 20,000 10% of the total income; ` 10,000 plus 20% of the amount by which the total income exceeds ` 10,000; ` 3,000 plus 30% of the amount by which the total income exceeds ` 20,000.
No surcharge is payable by a co-operative society. Education Cess @ 2% and SHEC @ 1% on income tax shall be chargeable. (C) In case of any firm (including limited liability partnership) 30%. No surcharge is payable by a firm (including limited liability partnership). Education Cess @ 2% and SHEC @ 1% on income tax shall be chargeable. (D) In case of every local authority 30% No surcharge is payable by a local authority. Education cess @ 2% and SHEC @ 1% on income tax shall be chargeable. (E) In the case of a company (i) For domestic companies : 30%, surcharge @ 5% on tax payable shall be levied where total income of the company exceeds one crore rupees. (ii) For foreign company : 40%, surcharge @ 2% on tax payable shall be levied where total income of the foreign company exceeds one crore rupees. Education Cess @ 2%, and Secondary and Higher Education Cess @ 1% on income tax (inclusive of surcharge if applicable) shall be chargeable.
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Section
2(24)
Definition of income includes Voluntary Contribution received by an Electoral Trust. Money or Value of Property u/s 56(2)(vii). Value of Shares of a Company (not being a Company in which the public are substantially interested) Income Tax on Dividend Income from Foreign Company : If the Total Income of an Indian Company, includes any income by way of dividends from a specified foreign company, the income tax payable shall be the aggregate of (a) The amount of Income Tax calculated on the income by way of such dividends at 15% and (b) The amount of Income Tax with which the Assessee would have been chargeable had its total income been reduced by the aforesaid income by way of dividends. Analysis of Exemptions
115BBD
Exemption is available for all Research Associations and not restricted to only Scientific Research Associations. Exemption u/s 10A available till Assessment Year 2011-12. Exemption u/s 10B available till Assessment Year 2011-12. The Following Explanation is removed Explanation - Dividend u/s 115-0 shall not be included in total income of a Developer or Entrepreneur. Hence, Developer or Entrepreneur of an SEZ shall be liable for Dividend Distribution Tax. Any Notified allowance or perquisite, paid to the Chairman or a retired Chairman or any other member or retired member of the Union Public Service Commission is exempt. Any Specified income arising to a body or authority or Board or Trust or Commission is exempt from tax. Conditions : (a) It has been established or constituted a Central, State or Provisional Act, or constituted by the Central Government or State Government, to regulate or administer any activity for the benefit of the General Public. (b) It is not engaged in any Commercial Activity. (c) It is notified by the Central Government in the Official Gazette. Any income of the notified Infrastructure Debt Fund, set up in accordance with the prescribed guidelines is exempt from tax. Voluntary contributions received by an Electoral Trust shall not be included in the Total Income if it distributes to any political party 95% of aggregate donations received by it during the previous year along with surplus. Income from Salaries
10(45) 10(46)
10(47) 13B
10(10C)/89 17(2)
VRS Compensation not eligible for Section 89(1) relief. Perquisites taxable in the hands of the employees Securities offered under ESOP scheme Employers Contribution to approved Superannuation Fund in excess of ` 1 Lakh Value of any other prescribed fringe benefit.
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35AD
35AD
36(1)(iva)
40A(9)
44AE 44AF
80CCF 80D
80GGA
80IA(4)(iv)
80IB
80ID
115JD
115JAA 115JB
115-O
115-R
2(15)
285
92C
92CA
94A
131(2)
139
139
142A
147
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153A
The following is excluded in computing the period of limitation: 153 & 153B The period commencing from the date on which a reference for exchange of information is made by an authority competent under an agreement uls 90 or 90A and ending with the date on which the information so requested is received by the CIT or a period of 6 months, whichever is less. 156 Intimation u/s 143(1) shall be deemed to be notice of demand in case where any sum is determined to be payable by the assessee. SETTLEMENT COMMISSION 245A(b) (a) Proceeding for Assessment/Reassessment u/s 153A/ 153C shall be deemed to have commenced on the date of issue of notice initiating such proceeding. (b) For all other assessment - it commences from 1st day of Relevant assessment year and concludes on the date on which assessment is made. The following is added for the purpose of application to the Settlement Commission. Where (a) the applicant is related to the specified person, who has already made an application. (b) Application can be made if the Additional Income Tax payable exceeds ` 10,00,000, even if proceedings for assessment or reassessment for any of the assessment years uls 153A(1)(b) or 153B(1)(b) have been initiated. Explanation 1. The applicant, in relation to the specified person means Appllicant can be 245C (a) If specified person is (i) Individual (ii) Company, Firm, AOP or HUF (b) If specified person has Business or Profession Relative Director, Partner, Member of AOP or HUF Relativestives of above Any individual having substantial interest or his relative Any Company, Firm, AOP or HUF whose Director, Partner or Member has substantial interest in the Business or Profession of specified person (or) Any other Director, Partner or Member of such company, Firm, AOP or HUF/their relatives
(c) Any person carrying on a Business or Profession, specified person being (i) An Individual or his relative (ii) Company, Firm, HUF, AOP or Director, Partner, Member or their relatives
Any person in whose Business or Profession, the individual has substantial interest Any person in whose Business or Profession they have substantial interest.
245D
194C
The Exemption Limit is increased to ` 20,000 p.a. The Exemption Limit is increased to ` 5,000 p.a. Rate of TDS revised as foliows Use of any Machinery, Plant or Equipment - 2% Use of any Land, Building (including Factory Building) or land appurtenant thereto, Furniture or Fittings - 10% The Exemption Limit is increased to ` 30,000 p.a. Where any income by way of interest is payable to a non-resident / foreign company, by an infrastructure debt fund referred u/s 10(47), the person shall, at the time of credit of such income or at the time of payment, whichever is earlier, deduct Income Tax at 5%. No TDS shall be made from any payment to any person for or on behalf of New Pension System Trust. Procedure for processing of TDS Returns filed. Interest Rate from the date of deduction of tax to the date of actual payment has been increased from 1% to 1.5%. Interest rate from the date on which tax was deductible to the date of deduction is retained at 1%. Provision that For the TDS deducted or paid on or after 01.04.2010, there shall be no requirement for deductor to furnish TDS certificate to the deductee has been omitted. Provision that For the Tax collected on or after 01.04.2010, no certificate may be furnished by the person collecting the tax has been omitted. WEALTH TAX
194J 194LB
203 206C
22D
(a) The Settlement Commission may, within a period of 6 Months from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it. (b) However an amendment which has the effect of modifying the liability of the applicant shall not be made unless the Settlement Commission has given notice to the applicant and the Commissioner of its intention to do so and has allowed the applicant and the Commissioner an opportunity of being heard.
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