Importan Tips - Accounts

8/2/2019 Importan Tips - Accounts

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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


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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


All AssesseEngaged in the business of hotel inspecified world heritage site


80-IE All AssesseEngaged in the specified business inNorth-Eastern States


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


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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


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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


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"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


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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]


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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.


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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


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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


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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


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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


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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


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


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


10% Nil


14/15

association

194EEDeposit inNSS

Post officeAnyperson


20% Rs.2500

194FUnits ofMutualfund/UTI

Mutual fund orUTI

Unitholder u/s80CCB


20% Nil

194G

Commission

on sale oflotterytickets

Any personpaying

commission onsale of lotterytickets

Anyperson


or crediting thepayee,whichever isearlier

10% Rs.1000

194HOthercommission

Any personother thanindividual andHUF whoseaccounts arenotrequired to beaudited duringimmediately

preceding P.Y.

Residentperson


10%Rs.2500 (Rs.5000w.e.f.01/07/2010)

194I Rent

Any personother thanindividual andHUF whoseaccounts arenotrequired to beaudited duringimmediatelypreceding P.Y.

Residentperson


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


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


SpecifiedRates

Nil

196B Unitsincome

Any personresponsible for

AnOffshore


10% Nil


15/15

paymentreferred insec.115AB

fundor crediting thepayee, whicheveris earlier

196C

Foreigncurrencybonds orGDR

Any personresponsible forpaymentreferred insec.115AC

Non-resident


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.

Importan Tips - Accounts

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