ASSESSMENT YEAR 2010-2011
RELEVANT TO FINANCIAL YEAR 2009-2010
I TAX RATES FOR INDIVIDUALS OTHER THAN II & III
Up to 1,60,000 - Nil
1,60,000 to 3,00,000 - 10% of the amount exceeding 1,60,000
3,00,000 to 5,00,000 - Rs.14,000 + 20% of the amount exceeding
3,00,000
5,00,000 & above - Rs.54,000 + 30% of the amount exceeding
5,00,000
II TAX RATES FOR RESIDENT WOMAN BELOW 65 YEARS
Up to 1,90,000 - Nil
1,90,000 to 3,00,000 - 10% of the amount exceeding 1,90,000
3,00,000 to 5,00,000 - Rs.11,000 + 20% of the amount exceeding
3,00,000
5,00,000 & above - Rs.51,000 + 30% of the amount exceeding
5,00,000
III TAX RATES FOR INDIVIDUAL RESIDENTS AGED 65 YRS AND
ABOVE
Up to 2,40,000 - Nil
2,40,000 to 3,00,000 - 10% of the amount exceeding 2,40,000
3,00,000 to 5,00,000 - Rs.6,000 + 20% of the amount exceeding
3,00,000
5,00,000 & above - Rs.46,000 + 30% of the amount exceeding
5,00,000
1. VOLUNTARY RETIREMENT – 10(10C)
Amount received or receivable (ie.,in installments) by an employee on
his voluntary retirement in accordance with any scheme of Voluntary
Retirement is exempt to the extent of Rs.5,00,000, provided the VRS is
in accordance with Rule 2BA of IT Rules. However no 89(1) relief can be
claimed.
2. HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A) – Read with Rule 2A
of IT Rules 1962
a) Actual HRA received : Rs.xxxx
b) Rent paid in excess of 10% of Salary : Rs.xxxx
c) 50% of Salary in Metro Cities or
40% of Salary in other cities : Rs.xxxx
Least of a), b), c) is exempt.
NOTE: Here Salary means Basic Salary as well as DA if the terms of
employment so provide.
3. CONVEYANCE ALLOWANCE:
Any allowance granted to meet the expenditure incurred wholly,
necessarily and exclusively on conveyance in performance of the duties
of office and so certified by the employer is exempt u/s.10(14).
4. TRANSPORT ALLOWANCE:
Any allowance granted to an employee to meet the expenditure for the
purpose of commuting between the place of his residence and the place
of his duty to the extent up to Rs.800/- per month is exempt u/s.10(14).
5. MEDICAL REIMBURSEMENT:
An amount of Rs.15,000 or the actual amount reimbursed by the
employer whichever is less is exempt u/s.17(2).
6. PROFESSION TAX :
Profession Tax levied by the State Government is allowable as a
deduction from Gross Salary provided it has been paid.
DEDUCTIONS FROM HOUSE PROPERTY
1. DEDUCTION U/S.23(1) : For let out property, amount paid by
the owner towards taxes levied by any local authority in respect of the
property is deductible from Annual value(taxes pertaining to any
previous years).
2. DEDUCTION U/S.24(a) : For let out property, deduction of 30% of
the Net Annual Value is allowed. No separate deduction for Repairs,
Collection Charges, Insurance Premium, Annual Charge and Ground
Rent.
and construction is completed within 3 years from the end of the
financial year in which the capital was borrowed – Rs.1,50,000 or actual
interest paid/payable whichever is less is deductible.
b. If new housing loan is taken for repayment of old loan (old loan
taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable
whichever is less is allowed as deduction.
c. If Property is acquired or constructed with loan taken before
01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is
allowed as deduction.
d. If loan taken for Repairs, renewal, reconstruction of property,
Rs.30,000 or actual interest paid/payable which ever is less is allowed as
deduction.
FOR LET OUT PROPERTY, actual interest paid/payable can be claimed
as deduction.
ONLY OWNER OF THE HOUSE PROPERTY CAN AVAIL THE ABOVE
DEDUCTIONS.
equity shares or unit of equity oriented fund through recognized stock
exchange is exempt if such transaction is chargeable to Securities
Transaction Tax (u/s.10(38)).
Short Term Capital Gains arising on sale of equity shares or unit of
equity oriented fund through recognized stock exchange is subject to tax
at the rate of 15% if such transaction is chargeable to Securities
Transaction Tax.
2/8/2010
invested in National Highways Authority of India, Rural Electrification
Corporation Limited, within six months from the date of sale. (Lock-in
period is 3 years)
For Cost Inflation Index, refer website.
STANDARD DEDUCTION FOR FAMILY PENSION U/S.57(iia):
An amount of Rs.15,000 or 331/3% of family pension whichever is less is
allowed as deduction. If an assessee receives arrears of family pension,
then Relief u/s.89(1) can be claimed by him.
Family Pension received by the widow or children or nominated heirs, as
the case may be, of a member of the armed forces (including paramilitary
forces) of the union, where the death of such member has
occurred in the course of operation is exempt.
EXEMPTIONS – OTHER SOURCES
Any income by way of Dividends from company, Income received in
respect of units from the Unit Trust of India, Income received in respect
of the units of a mutual fund are exempt.
FRINGE BENEFIT TAX (FBT)
In view of discontinuance of Fringe Benefit Tax from A.Y.2010-11
onwards, the value of specified fringe benefit and amenity is not
chargeable to tax in the hands of employer. Consequently under subclause
(vi) of Sec.17(2), provides that the value of any specified
security or sweat equity shares allotted or transferred, directly or
indirectly, by the employer, or former employer, free of cost or at
concessional rate to the employee is a perquisite chargeable to tax in the
hands of the employee.
PENALTY U/S.271F: If a person who is required to furnish a return of
income as required under section 139(1) or by the proviso to subsection,
fails to furnish such return before the end of the relevant
assessment year, shall be liable to pay by way of penalty a sum of
Rs.5,000.
INTEREST U/S.234A: Where the return of Income of any assessment
year u/s.139(1) or 139(4) or in response to a notice u/s.142(1), is
furnished after the due date as specified in sub-section 1 of section 139,
or is not furnished, the assessee shall be liable to pay simple interest at
the rate of one percent for every month or part of a month comprised in
the period commencing on the date immediately following the due date.
INTEREST U/S.234B: Where an assessee who is liable to pay advance
2/8/2010
tax under section 208 has failed to pay such tax or, where the advance
tax paid by such assessee under the provisions of section 210 is less
than 90% of the assessed tax, the assessee shall be liable to pay simple
interest at the rate of one percent for every month or part of a month
comprised in the period from the 1st day of April following the financial
year.
INTEREST U/S.234C: Where an assessee other than a Company, who is
liable to pay advance tax under section 208 has failed to pay such tax or,
1) The advance tax paid by the assessee on his current income on or
before the 15th day of September is less than 30% of the tax due on the
returned income or the amount of such advance tax paid on or before
the 15th day of December is less than 60% of the tax due on the
returned income, then, the assessee shall be liable to pay simple interest
at the rate of one percent per month for a period of three months on the
amount of the shortfall from 30% or, as the case may be, 60% of the
tax due on the returned income.
2) The advance tax paid by the assessee on his current income on or
before the 15th day of March is less than the tax due on the returned
income, then, the assessee shall be liable to pay simple interest at the
rate of one percent on the amount of the shortfall from the tax due on
the returned income.
DUE DATES FOR FILING RETURN OF INCOME : All
Individuals/HUF/Firms deriving Income from Salary, House Property,
Capital Gains, Business or Other Sources and not covered under section
44AB are required to file the Return of Income by 31st July. All Tax Audit
Cases covered under section 44AB, Company returns are required to file
the Return of Income by 30th September.
PERMANENT ACCOUNT NUMBER: Every assessee is required to obtain
10 Alpha numeric Permanent Account Number (PAN) and quote the same
in his returns, challans & correspondence. PAN can be obtained by
applying in new Form No.49A at the designated Service Centres of
UTITSL OR NSDL(Log on to our website). PAN is essential for processing
the Return of Income and for giving credit for taxes paid. If a person
who is required to quote his Permanent Account Number fails to do so or
intimates or quotes false number, the Assessing Officer may direct that
such person shall pay, by way of penalty, a sum of Rs.10,000.
To Know Your PAN, visit our website.
For PAN Grievances : UTITSL - e-mail - isw.bangalore@utitsl.co.in
NSDL - e-mail - tininfo@nsdl.co.in
TAX PAYMENTS: Advance tax payments and Self-assessment tax
payments have to be made in Challan No.280. Please obtain counterfoil
of challan containing Challan Identification Number (CIN) from the Bank
and enclose copy of the same with the return and quote CIN in the
return.
This brochure should not be construed as an exhaustive
statement of law. In case of doubt, reference should always be
made to the relevant provisions of Income Tax Act, Rules or
Notifications.
For further information, please contact:
The Public Relations Officer
Income-tax Department, C.R. Building, Queen’s Road,
Bangalore-560 001. E-mail: itprbangalore@rediffmail.com
Website: www.incometaxbangalore.org
| NEW TDS RATES FROM 01.10.2009 | ||||
| Particulars | NEW TDS RATES% IF DEDUCTEE IS | |||
| Section | Nature of Payment | CUT OFF AMOUNT | INDIVIDUAL and HUF | OTHER |
| 194A | Interest from a Banking Company | Rs. 10,000/- p.a | 10.00 | 20.00 |
| 194A | Interest other than from a Banking Co. | Rs. 5,000/- p.a | 10.00 | 20.00 |
| 194C | Payment to Contractors /Sub-contractors/advertisement contracts etc. | Rs.20,000/- per contract or Rs. 50,000/- p.a | 1.00 | 2.00 |
| 194C | Transport contractors engaged in the business of plying, hiring or leasing goods carriages. | Nil * | ||
| 194H | Commission or Brokerage | Rs. 2,500/- p.a | 10.00 | |
| 194I | Rent other than Plant, Mach.& Eqp. | Rs. 1,20,000/- p.a | 10.00 | |
| 194I | Rent of Plant , Machinery & Equipments | Rs. 1,20,000/- p.a | 2.00 | |
| 194J | Professional Charges | Rs.20,000/-p.a | 10.00 | |
| * The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/ HUF transporter and 2% for other transporters upto 31.3.2010 | ||||
| ** The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010 | ||||
No surcharge and cess is to be added from 01.04.2009 on tax deducted on non-salary payments made to resident taxpayers. It means that Surcharges & cess is not be included in basic TDS rates, while deduction tds, in case of payments to resident person/domestic company only. So in case of payment to Non resident and non -domestic company surcharge and Cess is also to be included while calculating TDS amount. | ||||
CONTRIBUTION
Contribution is the amount payable to the Corporation by the principal employer in respect of an
employee and comprises the amount payable by the employee and the employer.
The scheme is primarily funded by contribution raised from insured employees and their
employers in the implemented areas as a small but specified percentage of wages payable to
such employees.
The rates of contribution as of now are:-
Employees’ contribution-1.75 percent of the wages
Employers’ contribution-4.75 percent of the wages
Total-6.50 percent of the wages
It is obligatory on the part of the employer to calculate and remit ESI Contribution comprising of
employers' share 4.75% plus employees' share of 1.75% which is payable on or before 21st of
the following month, to the month to which the salary relates. If the employee is drawing upto
Rs.50/- as daily average wage, he is exempt from the payment of his share of contribution. The
employer is however to pay employer's share of 4.75% of the salary received/receivable by the
employee.
The State Govt. bears one-eight share of expenditure on medical benefits with in the per capita
ceiling of Rs.1000/- per I.P. family per annum.
RECOVERY OF CONTRIBUTION:
In the first instance the Principal Employer is to pay employers' share of contribution in respect
of every employee whether employed directly or through immediate employer. The employees'
share may thereafter, be recovered by making deduction from their wages for the wage period
for which contribution is, however is payable. No such deduction may be made from any wages
other than those relating to the period in respect in which contribution is payable.
ESIC
The Epf& MP (Miscellaneous provision act) act was came in to existence from March 14 th 1952.
The act is applicable all over India except the
state of Jammu and Kashmir.
Presently the following three schemes are providing toemployees under this act.
Employee
1. provident fund scheme (EPF) 1952.
2. Employees’ pension scheme (EPS) 1995
3. Employees deposit linked insurance (EDLIS) 1976.
An establishment with 20 or more workers should register with Employees provident fund organization which comes under any of the 180 industries mentioned.
Even though there are certainexemptions are there will be discussed in another post.
Here we mainly aimed for EPF rates and its calculation.
EPF, EPS, EDLIS rates in India
EPF, EPS and EDLIS are calculated on Basic salary, dearnessallowances, cash value of food concession and retaining allowances if any.
“Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in
which the establishment is not working, for retaining his services.”
Most of the organizations are following Basic+ DA Method. Below table tells you the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
Scheme Name Employee contribution Employer contribution Paid to A/c No:
Inspection charges payable by employer
Inspection charges must be paid by the employer in the following Cases.
Some establishment are exempted from EDLI contribution as they are providing the same nature of benefit without any contributions from
employee, such establishments are liable to pay 0.005% on Basic salary
1.The establishments exempted under the scheme should pay 0.18% of Basic salary t 2. owards inspection charges.
CONTRIBUTION OF EMPLOYERS
Rates of Contribution:
a) The Employees' Provident Fund Scheme
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act ( other than the Establishments. declared as sick ) 12% of the basic pay DA ,
Cash value of food concession and retaining allowance , if any, subject to a maximum of Rs.6500/- per month.
Voluntary higher contributions are also acceptable at the joint request of the member and the employer .
However, the rate of contribution is 10% in respect of the following categories of establishments:
Any establishment covered prior to 22.9.97 in which less than 20 persons are employed.
Any sick industrial company as defined in Clause(0) of Sub-Section(1) of Section 3 of the sick
industrial companies ( special provisions ) Act 1985 and which has been declared as such by the
Board for Industrial and Financial Reconstruction.
Any Establishment which has at the end of any financial year accumulated losses equal to or
exceeding its entire net worth.
Any Establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick , (d) Coir (other than
spinning sector), (e) Guar Gum Industries/Factories.
b) The Employees' Pension Scheme
From and out of employer's share of Provident Fund contributions 8.33% of the total wages limited to Rs.
6500/- per month is segregated and credited to the Employees' Pension Fund in A/C No. 10
( w.e.f.1-06-2001 ).
The Central Government also would contribute at the rate of 1.1 / 6% of total wages.
c) Employees' Deposit Linked Insurance Scheme:
No amount is recovered from employee's wages . Employer should pay 0.5% of total wages subject to a ceiling of Rs. 6500/- per month ( w.e.f. 1-06-2001 ).
