Deductions from Gross Total Income available under chapter VIA are as follows: Sec.

80C 80CCC Applicable to Individual and HUF Individual Condition(s) Investment in LIC, PPF, NSC, etc. Deduction Maximum Rs.100000 Maximum Rs.100000

Deposit in LIC or other insurer's annuity plan

80CCD

80CCE

80CCF

80D

80DD

In case of salaried individual: Aggregate of the amount paid or deposited in such pension scheme: Assesse has in the previous year By himself (to the maximum of paid or deposited any amount in 10% of salary). Individual his/her account under a pension By the employer (to the scheme notified by the Central maximum of 10% of salary) Government. Salary means Basic + DA, if the terms of employment so provide. In other cases: 10% of GTI 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 deduction u/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)] Investment in long term infrastructure Individual and HUF Maximum Rs.20000 bond Paid medical insurance for relative by any mode other than cash from taxable Maximum Rs.15000 / Rs.20000 income. (in case insured is a senior Individual & HUF Note: Individual can also contribute to citizen) the Central Government. Health (Additional Rs.15000 / Rs.20000 Scheme for himself / spouse / for parents) dependent children Assesse has disabled dependent Rs.100000 for severe Resident relative. disability. individual & Rs.50000 for non-severe Assesse deposited medical resident HUF disability certificate along with return.

Assesse himself or his relative is

80DD B Resident individual & resident HUF

suffering from specified diseases Assesse deposited medical certificate along with return. Where the patient is a senior citizen

80E 80G

Individual All Assesse

80GG

Individual

Assesse is repaying the interest on loan (taken for higher education). Assesse donated an amount (otherwise than in kind) to specified organizations or funds. Assesse is paying rent. He or his relative has no house at the place of employment of the Assesse. He is neither receiving HRA nor has claimed any benefit for self occupied property. Assesse submitted Form 10BA along with return of income.

Maximum [Rs.40000 - Mediclaim received or Amount reimbursed by employer] Maximum [Rs.60000 - Mediclaim received or Amount reimbursed by employer] Interest paid during the year for a maximum period of 8 years 50% or 100% of amount donated (subject to limit applicable, if any, on amount of donation)

Minimum of the following: 1. Rs.2000 p.m. 2. 25% of Adjusted GTI 3. Rent paid - 10% of adjusted GTI

80GG A 80GG B

Any Assesse not having income under the head "Profits & gains of business or profession" Indian Company All Assesse other than local authority or artificial juridical person, which is wholly or partly financed by Govt. Specified Assesse All Assesse Specified Assesse All Assesse All Assesse

Assesse has contributed certain amount for rural development, scientific research, etc.

Amount so contributed.

Amount so contributed Assesse contributed an amount to political party or an electoraltrust

80GG C

Amount so contributed

80-IA 80-IAB 80-IB 80-IC

80-ID All Assesse 80-IE 80JJA All Assesse All Assesse Indian company being a new industrial undertaking engaged in production of article or thing A scheduled bank - Any other bank Incorporated by or under the laws of a country outside India - Unit of an International Financial Services Center. Resident Individual

80JJAA

Engaged in specified business and subject to other conditions Engaged in the business of developing SEZ Engaged in specified business and subject to other conditions Engaged in production of specified article in Sikkim, Himachal Pradesh, Uttaranchal and North-Eastern States Engaged in the business of hotel or convention Centre in Delhi and nearby Engaged in the business of hotel in specified world heritage site Engaged in the specified business in North-Eastern States Assesse engaged in the business of processing of bio-degradable waste Assesse employed more than 100 new workmen in the first year and increased 10% worker in 2nd and 3rd year. A certificate (in Form 10DA) of chartered accountant is to be submitted signifying that deduction has been correctly claimed.

100% / 50% of profit of such business for certain years. 100% of profit of such business 100% / 50% of profit of such business for certain years. 100% / 25% / 30% of profit of from such unit for certain years. 100% of profit of such business 100% of profit of such business 100% of profit of such business 100% of profit of such business for 5 years.

30% of salary paid to new workmen during such years.

80LA

Assesse has a branch in SEZ. A certificate of chartered accountant

is to be submitted signifying that deduction has been correctly claimed.

100% of income of such branch for 5 years; and 50% of income of such branch for next 5 years.

80QQ B

Assesse is author of the specified

book. He earned royalty income (whether received in lump sum or otherwise). A certificate from the payer in Form 10CCD is to be submitted along with return of income. In case income is earned outside India, money must be brought into

Minimum of the following (as the case may be): Royalty fee (to the maximum of 15% of the value of the book sold; or Lump sum fee; Income brought into India in convertible foreign exchange; or


80RRB Resident Individual

80U

Resident Individual

India in convertible foreign exchange and a certificate must be obtained from the prescribed authority 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 into India in convertible foreign exchange within 6 months from the end of the P.Y. and a certificate must be obtained from the prescribed authority. Assesse himself suffering from disabilities. Medical certificate submitted along with return of income.

Rs.300000

Minimum of the following (as the case may be): Royalty fee or Lump sum fee; Income brought into Indian in convertible foreign exchange; or Rs.300000

For severe disability Rs.100000 For non-severe disability Rs.50000

General Points 1. 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 like winning from lotteries, races, etc. 2. The aggregate amount of deduction under chapter VIA cannot exceed Gross Total Income of the 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 satisfied Assesse has made a deposit or an investment or expenditure in any one or more of the Specified Items (click here for Specified items) during the previous year. Quantum of Deduction Deduction under this section shall be the minimum of the following: Aggregate of the eligible contributions, expenditure or investments (click here for Specified items) Rs.100000 Lock in Period Lock 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 years from the date when name of the assesse for those shares or debentures has been entered in the register of member or debenture holder by the company or the Mutual fund. 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

account, before the expiry of 5 years from the date of its deposit. However, any amount received by the nominee or legal heir of the assesse, on the death of such assesse, shall not be included. Consequence in case of violation of lock in period If the above lock in period is violated, then entire amount of deduction allowed earlier in any previous year, shall be treated as taxable income in the year in which default is made. S.N Particulars Applicable to Individual & HUF both 1 Life insurance premium paid by a person to effect or to keep in force an insurance policy (life policy or endowment policy) Remarks

3 4

6 7

10

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 excess of 20% of the actual sum assured shall be ignored. Contribution made towards Public Subscription should be in the name of following persons: provident fund (PPF). 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 loan Subscription to any notified Government security or any notified deposit scheme i.e. National Savings Scheme, 1992 Any subscription to National Savings If contribution is made in joint names, the person who Certificates, VIII Issue has contributed the money is eligible to claim deduction. An individual can claim deduction in respect of certificates purchased in the name of his spouse or minor child. Treatment of accrued interest: Deduction is also available on accrued interest which is reinvested. i.e., interest up to 5th year of investment is eligible for deduction. Contribution for participating in the Contribution can be made in the names of following Unit-linked Insurance Plan (ULIP) of persons: Unit Trust of India (UTI) or ULIP of LIC In case of individual: Such individual, spouse and child Mutual fund u/s 10(23D) (major or minor) of such individual; In the case of HUF: Any member of HUF. Sums paid to effect or keep in force a contract for notified annuity plan of the LIC or any other insurer. Subscription to notified units of a Equity Linked Saving Scheme, 2005. specified Mutual fund u/s10(23D)/ administrator or the specified company as referred in sec. 2 of UTI. Any sum paid as subscription to Home Loan Account Scheme or notified pension fund of the National Housing Bank. Any sum paid as subscription to a Such deposit scheme shall be of notified deposit scheme. Public sector companies engaged in providing longterm finance for construction or purchase of houses in India for residential purpose; or Any authority constituted in India for the purpose of satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns, villages or for both. Any payment for purchase or Specified person includes construction of a residential house 1. the Central or State Government; or property (the income from which is 2. any bank, including a co-operative bank; or chargeable to tax under the head 3. the National Housing Bank; or

"Income from house property"), by way of any instalment due under any selffinancing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or any instalment due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or repayment of the amount borrowed by the assessee from specified person# stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee

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. 17 Subscription to units of any mutual fund u/s 10(23D) provided amount of subscription to such units is subscribed only in the eligible issue of capital 18 Investment as term deposit for a Such term deposit scheme shall be framed and notified period of 5 years or more with a by the Central Government scheduled bank. 19 Notified Bonds issued by the National Bank for Agriculture and Rural Development (NABARD) 20 Senior Citizens Savings Scheme Rules, 2004 21 5 year time deposit in an account under the Post Office Time Deposit Rules, 1981 Applicable to Individual only 1 Payment by an individual in respect of Annuity may be taken in the name of the individual, non-commutable deferred annuity. spouse and any child of such individual. Such contract does not contain a provision for the exercise by the insured of an option to receive a cash payment in lieu of the payment of the annuity 2 Any sum deducted from salary of a Maximum limit: 20% of salary of the employee Government employee for the purpose of securing to him a deferred annuity or making provision for his wife or children. 3 Contribution made towards statutory Contribution must not be in form of repayment of loan provident fund and recognized

Life Insurance Corporation; or any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes; or 6. any company in which the public are substantially interested or any cooperative society, where such company or co-operative society is engaged in the business of financing the construction of house; or 7. the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act; 8. the assessee's employer where such employer is a public company or public sector company, or a university established by law or a college affiliated to such university or local authority or co-operative society. Notes: Any expenditure in respect of which deduction is allowable u/s 24 is not eligible for deduction. Repayments of loan borrowed for acquiring commercial property are not entitled for deduction. Repayment of loan taken for repair, alteration, renovation, addition are not eligible for deduction Eligible issue of capital means an issue made by a public company formed and registered in India or a public financial institution and the entire proceeds of the issue are utilized wholly and exclusively for the purpose of any business referred to in sec. 80IA(4).

4.

5.

4 5

provident fund. Contribution made towards an approved superannuation fund. Contribution to any notified pension fund set up by a Mutual Fund u/s 10(23D) or by the administrator or the specified company referred u/s 2 of the UTI Any payment by way of tuition fees to any university, college, school or other educational institution situated within India for the purpose of full-time education. Restriction on number of child: Deduction shall be allowed in respect of maximum two children.

Admission fee: Tuition fees may be at the time of admission or thereafter Donation to school, etc: Such payment does not include any payment towards any development fees or donation 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 transferred within 3 years from the date when name of the assesse for those shares or debentures has been entered in the register of member or debenture holder by the company or the Mutual fund. 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 account, before the expiry of 5 years from the date of its deposit. However, any amount received by the nominee or legal heir of the assessee, on the death of such assessee, shall not be included. Consequence in case of violation of lock in period If the above lock in period is violated, then entire amount of deduction allowed earlier in any previous 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]

Salary is chargeable to tax either on 'due' basis or on 'receipt ' basis, whichever is earlier. Place of accrual of salary Salary which is received in India or earned in India shall be taxable in hands of all assessee whether 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 glance Computation of income under the head 'Salaries' of ....... for the A.Y. .......... Particulars Details 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 of Rs.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 Amount **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** **** ****

****

**** **** **** **** **** **** **** ****

**** ****

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.

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 voluntarily without any contractual obligation of the employer, whereas an annuity received from an exemployer is taxed as profit in lieu of salary' u/s 17(3)(ii). Annuity received from a person other than 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 period When an employer retrenches an employee then he will have to give a proper notice. If an employer fails to do so then he will have to pay salary equivalent to notice period, apart from retrenchment 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 or former 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 it does 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 sum allocated by way of bonus on such policy. Any amount received (in lump sum or otherwise) prior to employment or after cessation of employment

Depreciation Rates (Income Tax - WDV Method) Block of assets Building Buildings which are used mainly for residential purposes except hotels and boarding houses Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below Buildings acquired on or after the 1st day of September, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under clause (i) of sub-section (4) of section 80-IA Purely temporary erections such as wooden structures Furniture and fittings Furniture and fittings including electrical fittings Machinery and Plant Machinery and plant other than those covered by sub-items (2), (3) and (8) below Motor cars, other than those used in a business of running them on hire, acquired or Rate (%) 5 10 100

100 10 15 15

put to use on or after the 1st day of April, 1990 Aeroplanes - Aeroengines Motor buses, motor lorries and motor taxis used in a business of running them on hire Commercial vehicle which is acquired by the assessee on or after the 1st day of October,1998, but before the 1st day of April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6] 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 15 years of age and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 New commercial vehicle which is acquired on or after the 1st day of April, 1999 but before the 1st day of April, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the 1st day of April, 2000 for the purposes of business or profession in accordance with the second proviso to clause (ii) of subsection (1) of section 32 New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession 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, 2009 for the purposes of business or profession Moulds used in rubber and plastic goods factories Air pollution control equipment, being: Electrostatic precipitation systems Felt-filter systems, Dust collector systems, Scrubber-counter current / venture / packed bed / cyclonic scrubbers, Ash handling system and evacuation system 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 systems Aerated lagoon systems, Biofilters, Methane-recovery anaerobic digester systems Air floatation systems, Air/steam stripping systems Urea Hydrolysis systems, Marine outfall systems Centrifuge for dewatering sludge Rotating biological contractor or bio-discIon exchange resin column, Activated carbon column Solidwaste, control equipment being - caustic/lime/ chrome/mineral/cryolite recovery systems Solidwaste recycling and resource recovery systems Machinery and plant, used in semi-conductor industry covering all Integrated Circuits (ICs)(excluding hybrid integrated circuits) ranging from Small Scale Integration (SSI) to Large Scale Integration/Very Large Scale Integration (LSI/VLSI) as also discrete semiconductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below Life saving medical equipment, being: D.C. Defibrillators for internal use and pace makers Haemodialysors, Heart lung machine, Cobalt Therapy Unit Colour 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 30 40

60

60

50 50 30 100

100

100 100 30

40

intravenous catheters for chemotherapy, Fibre optic endoscopes including, Paediatric resectoscope/audit resectoscope, Peritoneoscopes, Arthoscope, Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope, Fibreoptic Flexible Oesophago Gastroscope Laparoscope (single incision) Containers made of glass or plastic used as re-fills Computers including computer software Machinery and plant, used in weaving, processing and garment sector of textile industry, which is purchased under TUFS on or after the 1st day of April, 2001 but before the 1st day of April, 2004 and is put to use before the 1st day of April, 2004 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 for the purpose of business of providing infrastructure facility under clause (i) of subsection (4) of section 80-IA Wooden parts used in artificial silk manufacturing machinery Cinematograph films - bulbs of studio lights Match factories - Wooden match frames Mines and quarries : Tubs winding ropes, haulage ropes and sand stowing pipes 100 Safety lamps Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material Flour mills - Rollers Iron and steel industry - Rolling mill rolls Sugar works - Rollers Energy saving devices, being Specialised boilers and furnaces : Ignifluid/fluidized bed boilers Flameless furnaces and continuous pusher type furnaces 80 Fluidized bed type heat treatment furnaces High efficiency boilers (thermal efficiency higher than 75 percent in case of coal fired and 80 per cent in case of oil/gas fired boilers) Instrumentation and monitoring system for monitoring energy flows Automatic electrical load monitoring syste Digital heat loss meters Micro-processor based control systems Infra-red thermography Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters Maximum demand indicator and clamp on power meters Exhaust gases analyzer Fuel oil pump test bench Waste heat recovery equipment: Economisers and feed water heaters Recuperators and air pre-heaters Heat pumps Thermal energy wheel for high and low temperature waste heat recovery Co-generation systems: Back pressure pass out, controlled extraction, extraction-cumcondensing turbines for co-generation along with pressure boilers Vapor absorption refrigeration systems 80 Organic rankine cycle power systems Low inlet pressure small steam turbines Electrical equipment:

50 60 50 100

100

80 80

Shunt capacitors and synchronous condenser systems Automatic power cut-off devices (relays) mounted on individual motors Automatic voltage controller Power factor controller for AC motors Solid state devices for controlling motor speeds Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water) Series compensation equipment Flexible AC Transmission (FACT) devices - Thyristor controlled series compensation equipment Time of Day (ToD) energy meters Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient region Remote terminal units/intelligent electronic devices, computer hardware/software, router/bridges, other required equipment and associated communication systems for supervisory control and data acquisition systems, energy management systems and distribution management systems for power transmission systems Special energy meters for Availability Based Tariff (ABT) Burners: 0 to 10 per cent excess air burners Emulsion burners 80 Burners using air with high pre-heat temperature (above 300 Other equipment : Wet air oxidation equipment for recovery of chemicals and heat Mechanical vapour recompressors Thin film evaporators Automatic micro-processor based load demand controllers Coal based producer gas plants Fluid drives and fluid couplings Turbo charges/super-charges Sealed radiation sources for radiation processing plants Gas cylinders including valves and regulators Glass manufacturing concerns - Direct fire glass melting furnaces Mineral oil concerns: Plant used in field operations (above ground) Returnable packages Plant used in field operations (below ground), but not including kerbside pumps including underground tanks and fittings used in field operations (distribution) by mineral oil concerns Renewable energy devices being Flat plate solar collectors Concentrating and pipe type solar collectors Solar cookers Solar water heaters and systems Air/gas/fluid heating systems Solar crop driers and systems Solar refrigeration, cold storages and air conditioning systems Solar steels and desalination systems Solar power generating systems Solar pumps based on solar-thermal and solar-photovoltaic conversion Solar-photovoltaic modules and panels for water pumping and other applications Wind mills and any specially designed devices which run on wind mills Any special devices including electric generators and pumps running on wind energy Biogas-plant and biogas-engines Electrically operated vehicles including battery powered or fuel-cell powered vehicles Agricultural and municipal waste conversion devices producing energy Equipment for utilising ocean waste and thermal energy Machinery and plant used in the manufacture of any of the above sub-items Books owned by assesses carrying on a professional Books, being annual publications Books, other than those covered by entry (a) above Books owned by assesses carrying on business in running lending libraries

60 60

80

100 60 100

Ocean-going ships including dredgers, tugs, barges, survey launches and other similar 20 ships used mainly for dredging purposes and fishing vessels with wooden hull Vessels ordinarily operating on inland waters, not covered by sub-item (3) below 20 Vessels ordinarily operating on inland waters being speed boats 20 INTANGIBLE ASSETS Know-how, patents, copyrights, trademarks, licenses, franchises or any other 25 business or commercial rights of similar nature

New Income Tax Return Forms

FORMS A.Y. 2010-11 For Individuals having Income from Salary / Pension / Income from One House Property (excluding loss brought forward from previous years) / Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses. For Individuals and HUFs not having Income from Business or Profession For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship For individuals & HUFs having income from a proprietary business or profession For firms, AOPs and BOIs For Companies other than companies claiming exemption under section 11 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) Return for Fringe Benefits Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6 transmitted electronically without digital signature. FORMS A.Y. 2011-12

ITR 1

ITR-1 SAHAJ

Indian Individual Income tax Return

ITR 2

ITR 2

ITR 3

ITR 3

For Individuals and HUFs not having Income from Business or Profession For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship Sugam -Presumptive Business Income tax Return For individuals and HUFs having income from a proprietory business or profession For firms, AOPs and BOIs For Companies other than companies claiming exemption under section 11 For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) Acknowledgement

ITR 4

SUGAM (ITR-4S) ITR 4 ITR 5

ITR 5 ITR 6

ITR 7

ITR 6

ITR 8

ITR 8

ITR V

ITR V

TDS Ready Reckoner

Sec.

Nature of payment

Person responsible to deduct tax

Recipient

Time of deduction

Rate of TDS Averag e rate of tax 10%

Maximum payment upto which tax shall not be deducted

Basic Exemption Limit

192

Salary

Employer Payer of interest on securities Domestic Company Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding previous year Any person paying such income Any person paying such income Any specified person including individual and HUF whose accounts are required to be audited during immediately preceding previous year

Employee

At the time of payment

193

Interest on securities

Resident person

At the time of payment or crediting the payee, whichever is earlier At the time of payment

Rs.2500 (Subject to certain conditions) Rs.2500 (Subject to certain conditions) Rs.5000 (Subject to certain conditions) (Rs.10000 in case of Bank FDR)

194

Dividend u/s 2(22)(e)

Resident person

10%

194A

Interest other than interest on securities

Resident person

At the time of payment or crediting the payee, whichever is earlier

10%

194B

194BB

Winning from lotteries, etc. Winning from horse races

Any person Any person

At the time of payment At the time of payment

30%

Rs.5000 (Rs.10000 w.e.f. 01/07/2010) Rs.2500 (Rs.5000 w.e.f. 01/07/2010) a) Rs.20000 (provided aggregate amount paid during the financial year does not exceed Rs.50000) (Rs.30000 and Rs.75000 w.e.f. 01/07/2010) b) Payment to Road transport operator if they provides PAN Rs.5000 (Rs.20000 w.e.f. 01/07/2010) Nil

30%

194C

Contract

Resident person

At the time of payment or crediting the payee, whichever is earlier

Payee is Individu al or HUF : 1%

Other payee: 2%

194D 194E

Insurance Commission Sports person

Any person Any person paying specified income Nonresident foreign citizen sportsman or sports At the time of payment or crediting the payee, whichever is earlier

10% 10%

194EE 194F

Deposit in NSS Units of Mutual fund/UTI Commission on sale of lottery tickets

Post office Mutual fund or UTI Any person paying commission on sale of lottery tickets Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding P.Y. Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding P.Y. Any person other than individual and HUF whose accounts are not required to be audited during immediately preceding previous year

associatio n Any person Unit holder u/s 80CCB Any person

At the time of payment At the time of payment At the time of payment or crediting the payee, whichever is earlier At the time of payment or crediting the payee, whichever is earlier

20% 20%

Rs.2500 Nil

194G

10%

Rs.1000

194H

Other commission

Resident person

10%

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

194I

Rent

Resident person

At the time of payment or crediting the payee, whichever is earlier

Plant & Mach: 2% Other Asset: 10%

Rs.120000 (Rs.180000 w.e.f. 01/07/2010)

194J

Professional or technical service

Resident person

At the time of payment or crediting the payee, whichever is earlier

10%

Rs.20000 (Rs.30000 w.e.f. 01/07/2010)

194LA

Compensati on for Compulsory acquisition of immovable property (other than agro land)

Any person responsible for such payment

Resident

At the time of payment in cash or by cheque or draft or by other mode, whichever is earlier. At the time of payment or crediting the payee, whichever is earlier At the time of payment

10%

Rs.100000

195

Any sum

Any person paying any amount chargeable under this Act Any person responsible for

Nonresident An Offshore

Specifie d Rates 10% Nil

Nil

196B

Units income

payment referred in sec.115AB Foreign currency bonds or GDR Any person responsible for payment referred in sec.115AC Any person responsible for payment referred in sec. 115AD(1)(a)

fund

196C

Nonresident

196D

Any income

Foreign Institution al Investor

or crediting the payee, whichever is earlier At the time of payment or crediting the payee, whichever is earlier At the time of payment or crediting the payee, whichever is earlier

10%

Nil

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.