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Tuesday, June 28, 2011

Tuesday, June 21, 2011

New Section 44AD – Presumptive Income Scheme

Section 44AD has been modified w.e.f A.Y.2011-12 and a brief descriptive chart of the new provisions of the section is as under

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Thursday, June 16, 2011

New Income Tax Return Forms for the F.Y.2010-2011 A.Y.2011-2012


New Income Tax Return Forms for the F.Y.2010-2011 A.Y.2011-2012
 


S.No.
Return Form
Applicable to
Download
1.
ITR-1 (SAHAJ)
For Individuals having Income from Salary/Pension or Income from One House Property (excluding cases where loss is brought forward from previous year) or Income from Other sources (excluding winning from lottery and Income from race horses)
2.
ITR-2
For Individuals and HUFs not having Income from Business or Profession
3.
ITR-3
For Individuals/HUFs being Partners in firms and not carrying out business or profession under any proprietorship
4.
ITR-4
For Individuals and HUFs having Income from  a proprietory business or profession
5.
ITR-4S (SUGAM)
For Individuals and HUFs whose Income includes Business Income computed in accordance with the provisions of Section 44AD or 44AE (Presumptive Business Income)
6.
ITR-5
For Firrms, AOPs and BOIs
7.
ITR-6
For Companies other than companies claiming exemption under section 11
8.
ITR-7
For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

Wednesday, June 15, 2011

Income Tax Rates for the A.Y.2012-13




From April 1, 2011 new tax slabs apply, which are as follows:
F.Y.2011-12 (A.Y.2012-13)

a) Individuals, HUF’s, AOPs, BOIs

For Resident Women (Age limit = below 60 years)
Up to Rs 1,90,000
NIL
Rs 1,90,001 to Rs 5,00,000
10 per cent
Rs 5,00,001 to Rs 8,00,000
20 per cent
Rs 8,00,000 and above
30 per cent

For Resident Senior Citizens (Age limit =  60 years or more at any time during the year but not more than 80 years on the last day of the year)
Up to Rs 2,50,000
NIL
Rs 2,50,001 to Rs 5,00,000
10 per cent
Rs 5,00,001 to Rs 8,00,000
20 per cent
Rs 8,00,000 and above
30 per cent


For Resident Super Senior Citizens (Age Limit = 80 years or more at any time during the  year)
Up to Rs 5,00,000
NIL
Rs 5,00,001 to Rs 8,00,000
20 per cent
Rs 8,00,000 and above
30 per cent


For any other individual, every HUF /AOP / BOI artificial juridical person
Up to Rs 1,80,000
NIL
Rs 1,80,001 to Rs 5,00,000
10 per cent
Rs 5,00,001 to Rs 8,00,000
20 per cent
Rs 8,00,001 and above
30 per cent
 

b) Partnership Firms
                        Income Tax Rate = 30 %
                        Education Cess @ 3%

c) Corporate Income Tax

            1. For Domestic companies

                        Income Tax Rate = 30 %
                        Surcharge @ 5% (If gross turnover of company exceeds Rs. 1 Crore)
                        Education Cess @ 3%

            2. For Foreign Companies

                        Income Tax Rate = 40 %
                        Surcharge @ 2% (If gross turnover of company exceeds Rs. 1 Crore)
                        Education Cess @ 3%

 d) Co-operative Societies

             The Following rates are applicable to a co-operative society

Net Income Range
Rate of Income Tax
Up to Rs 10,000
10 per cent
Rs 10,000 to Rs 20,000
20 per cent
Rs 20,000 and above
30 per cent

Education cess @ 3% on total tax is also payable.

 

e) Local Authorities
For Local authorities, Income is taxed at a flat rate of 30%. An education cess of 3% is payable on the tax, yielding effective tax rate of 30.90%.


Friday, June 3, 2011

Procedure for Regulating Refund of Excess Amount Of TDS Deducted and/Or Paid


Section 200A of the Income-tax Act, 1961 - Deduction of tax at source - Processing of statement of tax deducted at source - Procedure for regulating refund of excess amount of TDS deducted and/or paid

CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011]
The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980.
2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible.
3. In consideration of the above and in supersession of the circular No. 285, dated 21-10-1980, the Board prescribes the following procedure for regulating refund of amount paid in excess of tax deducted and/or deductible in respect of TDS on residents covered under sections 192 to 194LA of the Income-tax Act, 1961. This circular will not be applicable to TDS on non-residents falling under sections 192, 194E and 195 which are covered by circular No. 7/2007 issued by the Board.
4. The excess payment to be refunded would be the difference between:
  (i)  the actual payment made by the deductor to the credit of the Central Government; and
 (ii)  the tax deductible at source.
4.1 In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.
4.2 In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.
5. However, to avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:
5.1 The applicant deductor shall establish before the Assessing Officer that:
  (i)  it is a case of genuine error and that the error had occurred inadvertently;
 (ii)  that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and
(iii)  that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.
5.2 Prior administrative approval of the Additional Commissioner or the Commissioner (TDS) concerned shall be obtained, depending upon the quantum of refund claimed in excess of Rupees One Lakh and Rupees Ten Lakh respectively.
5.3 After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.
6. In view of provisions of section 200A of the Income-tax Act prescribing processing of statement of TDS and issue of refund with effect from 1-4-2010, this circular will be applicable for claim of refunds for the period upto 31-3-2010.

Source : www.incometaxindia.gov.in