Post on 06-Apr-2018
8/2/2019 Charge to Income-Tax PPT
1/22
WELCOME TO ALL
8/2/2019 Charge to Income-Tax PPT
2/22
Charge to Income-tax
Everyone exceeds the maximum amount whichis not chargeable to the income tax is an assessee,and shall be chargeable to the income tax at the
rate or rates prescribed under the finance act forthe relevant assessment year, shall be determinedon basis of his residential status.
Income tax is a tax payable, at the rate enacted by
the Union Budget (Finance Act) for everyAssessment Year, on the Total Income earned inthe Previous Year by every Person.
8/2/2019 Charge to Income-Tax PPT
3/22
Tax Rates
In India, Individual income tax is a progressive tax
with three slabs. About 10 per cent of the populationmeets the minimum threshold of taxable income
From April 1, 2011 new tax slabs apply, which are asfollows:
8/2/2019 Charge to Income-Tax PPT
4/22
Income tax slabs (in Rs) 2011-2012
General Women
Senior
Citizen
Very Senior
Citizen
Tax
pplicable
0 to
1,80,000
0 to
1,90,000
0 to
2,50,000
0 to
5,00,000 No Tax
1,80,001 to
5,00,000
1,90,001 to
5,00,000
2,50,001 to
5,00,000 - 10%
5,00,001 to
8,00,000
5,00,001 to
8,00,000
5,00,001 to
8,00,000
5,00,001 to
8,00,000 20%
Above
8,00,000
Above
8,00,000
Above
8,00,000
Above
8,00,000 30%
8/2/2019 Charge to Income-Tax PPT
5/22
Heads of Income
The total income of a person is divided intofive heads, viz., taxable
Income from Salary
Income from House property
Income from Business or Profession
Income from Capital Gains
Income from Other Sources
8/2/2019 Charge to Income-Tax PPT
6/22
Exemptions:
1) 80 C Limit Unchanged (Rs.1,00,000)(refer to our earlier blog for alloptions under section 80 C
2) 80 CCF
Additional Rs. 20,000 oninvestments towards approvedInfrastructure bonds
3) 80CCD:
Contribution to NPS and returns on NPStax free, but withdrawal still taxable
8/2/2019 Charge to Income-Tax PPT
7/22
4) 80 D
Mediclaim Premium on the Health of
a) Self Spouse and Children
Rs. 15,000
b) Parent/Parents
Rs. 15,000
c) If Parent/ Parents Senior citizen
Rs. 20,000
8/2/2019 Charge to Income-Tax PPT
8/22
5) Section 80DD
Deduction under section 80DD
Exemption given for Expenditure made for a
disabled dependant towards MedicalTreatment/Training/Rehabilitation. It alsoincludes the LIC/Insurance premium paid towardsmaintenance of such dependant.
Maximum deduction allowed is Rs. 50,000/- incase of normal disability and Rs. 1 Lakh in caseof severe disability.
8/2/2019 Charge to Income-Tax PPT
9/22
6) 80DDB
Deduction under section 80DDB
Exemption given for expenditure incurred onspecified disease or ailments such as
cancer/aids.
Maximum deduction allowed is Rs. 40,000/-.In case of Senior Citizens, maximum
deduction allowed is Rs. 60,000/-
8/2/2019 Charge to Income-Tax PPT
10/22
7) Section 80E
Deduction under section 80E
Deduction is allowed for repayment ofinterestcomponent of Higher Education loan. All education
after Class 12 is allowed, either vocational or Fulltime.But should be from a school/institute/universityrecognized by the government.
8 ) Section 80G
Contribution to exempt charities
25/50/75/100%depending on the charity and as per approval
100% exemption on donation to political parties
8/2/2019 Charge to Income-Tax PPT
11/22
9) 80U
Deduction under section 80U
Deduction upto Rs. 50,000/- is allowed in case of
Permanent Disability. In case of Permanent Disability exceeding 80%,
maximum deduction allowed is Rs. 75,000/-.
10) Section 24(1)(vi)
Housing loan interest.Maximum Investment Limit
Rs.1,50,000 (for loans taken after 1 April 1999, for loansbefore that Maximum Investment Limit 30,000).
8/2/2019 Charge to Income-Tax PPT
12/22
11) SuperannuationAny contribution made bya company to superannuation fund upto Rs.1,00,000 tax free in the hands of the employee
12) Conveyance/Transport Allowance
Any
Conveyance / Transport Allowance given to anemployee is tax free upto Rs. 9,600 /- (NoSupporting Bills required)
13) Medical Allowance
Any MedicalAllowance given to an employee is tax free uptoRs. 15,000 /- (Supporting Bills required)
8/2/2019 Charge to Income-Tax PPT
13/22
Punjab Chief Minister Parkash Singh Badal
sought income tax exemption for industry,corporate houses, NGO's and media investing in
the road safety programmes approved by the
government in the forthcoming Union budget
for 2012-13 financial year.
8/2/2019 Charge to Income-Tax PPT
14/22
Income Tax exemption limit for individuals has
been raised from Rs 1.6 lakh to Rs 1.8 lakh, giving
a relief of Rs 2000 to every tax payer, in the Budget
for 2011-12 which widened the Service Tax net to
cover more services that will raise the cost of airtravel, hotel accommodation and those who drink in
AC restaurants.
8/2/2019 Charge to Income-Tax PPT
15/22
Income tax benefits for projects
8/2/2019 Charge to Income-Tax PPT
16/22
Five year tax holiday for:
Power projects
Firms engaged in exports
New industries in notified states and for new industrial
units established, in electronic hardware/softwareparks.
Export oriented units and units in Free Trade Zones.
As of 1994-95 budget firms engaged in providing
infrastructure facilities, can also avail of this benefit.
8/2/2019 Charge to Income-Tax PPT
17/22
Tax deductions of 100% of export profits
Deduction of 30% of net income for 10 years for new
industrial undertakings.
Deduction of 50% on foreign exchange earnings byconstruction companies, hotels and on royalty, commission,etc.
Deduction in respect of certain inter-corporate dividends tothe extent of dividend declared.
Deduction of an additional amount of Rs.20000 allowed,over and above the existing limit of Rs. 1lakh on tax savings,for investment in long term infrastructure bonds as notifiedby the central government.
8/2/2019 Charge to Income-Tax PPT
18/22
Besides contribution to health insurance schemeswhich is currently allowed as a deduction under theIncome Tax Act, contributions to the central
government health scheme also allowed as adeduction under the same provision.
Current surcharge of 10 percent on domesticcompanies reduced to 7.5%
Rate of minimum alternate tax(MAT) increased fromthe current rate of 15% to 18% of book profits.
To further encourage R & D across all sectors ofeconomy, weighted deduction on expenditure incurredon in-house R&D enhanced from 150% to 200%.
8/2/2019 Charge to Income-Tax PPT
19/22
Weighted deduction on payments made to national
laboratories, research associations, colleges, universities and
other institutions, for scientific research enhanced from 125%to 175%.
Payment made to an approved association engaged in
research in social sciences or statistical research to be allowedas a weighted deduction of 125 %. The income such approved
research shall be exempt from tax.
Benefit of investment linked deduction under the Actextended to new hotels of 2 star category and above
anywhere in India to boost investment in the tourism sector.
8/2/2019 Charge to Income-Tax PPT
20/22
Limits for turnover which accounts need to be auditedenhanced to Rs.60 lakhs for businesses and to Rs.15 lakhsfor professions.
Limit of turnover for the purpose of presumptive taxationof small businesses enhanced to Rs.60 lakhs.
If tax has been deducted on payment by way of anyexpense and is paid before the due date of filing the return,such expenditure to be allowed for deduction. Interestcharged on tax deducted but not deposited by the specifieddate to be increased from 12% to 18% p.a.
To facilitate the conversion of small companies into limitedliability partnerships, transfer of assets as a result of suchconversion not to be subject to capital gains tax
8/2/2019 Charge to Income-Tax PPT
21/22
The advancement of any other object of general public utility to be
considered as charitable purpose even if it involves carrying on of
any activity in the nature of trade, commerce or business providedthat the receipts from such activities do not exceed Rs.10 lakhs in
the year.
Proposals on direct taxes estimated to result in a revenue loss of
Rs.26000 crores for the year.
Allow pending projects to be completed within a period of five
years instead of 4 years for claiming a deduction of their profits, as
a one time interim relief to the housing and real estate sector.
Norms for built-up areas of shops and other commercial
establishments in housing projects to be relaxed to enable basic
facilities for their residents.
8/2/2019 Charge to Income-Tax PPT
22/22
THANK YOU