| Section /Schedule | Head | Amendment/New Provision | Effective date | ||||||||||||
| Part III to Schedule I | Advance taxes & TDS u/s 192 | Advance taxes for the FY 2011-12 and TDS u/s 192 from salary shall be made at the following rates: · In case of Individuals, HUF, AOP/BOI & Artificial juridical person:
# In case of individual being woman resident in India and below the age of 60 years at any time during the PY, the basis exemption limit is Rs. 190,000. #In case of individual, being resident in India, who is age of 60 years [Senior Citizen Age Criteria Reduced from 65 Years to 60 Years] or more but less than 80 Years at any time during the PY, the basic exemption limit is Rs. 2,50,000. @ In case of individual, being resident in India, who is age of 80 years or more at any time during the PY, the basic exemption limit is Rs. 5,00,000.
Education cess and SHEC shall be continued to be levied in all cases. | 1-4-2011 | ||||||||||||
| 2(15) | Definition of Charitable purpose | The term ‘Charitable Purpose” has been amended as follows: “advancement of any other object of general public utility” included in definition is not a charitable purpose if the activity involves carrying of trade, commerce or business or rendering any service in relation thereto for consideration irrespective of nature of use or application, or retention of income from such activity. However, if total receipts from aforesaid activity do not exceed Rs. 25 Lakhs [Earlier Rs. 10 Lakhs] in the PY, the said activity shall continue to be charitable in nature. | 1-4-2011 | ||||||||||||
| 10(45) | Exemption from Perquisities | Notified Special Allowances and Perquisites received by Serving or retired chairman and members of the Union Public Service Commission | Retrospective 1-4-07 | ||||||||||||
| 10(47), 115A and 194LB | Exemption of Infra Debt Fund | Income of Notified Infrastructure Debt Funds shall be Exempt from tax subject to following Conditions: # It shall file its Return of Income. # Interest received by Non Resident shall be taxed u/s 115A @ 5% of Gross Amount #TDS shall be made u/s 194LB @ 5% on interest paid to non resident. | 1-6-2011 | ||||||||||||
| 35(2AA) | Contribution to approved institutions for scientific research | Deduction eligibility has been increased from 175% to 200% | 1-4-2011 | ||||||||||||
| 35AD | Investment linked deduction | 100% deduction shall be allowed in respect of any capital expenditure [other than on land, goodwill or financial instrument] incurred for the purposes of specified business: The list of specified business has been extended to include :
Loss from business of Hotels & hospitals specified u/s 35AD shall be allowed to be set off u/s 73A against profit of another specified business whether or not claiming deduction u/s 35AD. | 1-4-2011 | ||||||||||||
| 36 | Deduction of Contribution to NPS | Contribution not exceeding 10% of salary of employee made to NPS by Employer on account of Employee allowed as deduction | 1-4-2011 | ||||||||||||
| 80CCE | Deduction above Rs. 1 Lakh | Contribution made by Central Government or Employer to pension scheme specified u/s 80CCD shall be excluded from the limit of Rs. 1,00,000/- specified for 80C, 80CCC and 80CCD | 1-4-2011 | ||||||||||||
| 80CCF | Deduction in respect of investment in LT Infra Bonds | Deduction is allowed to Individual & HUF only in respect of investment in notified long term infrastructure bonds to the extent of Rs. 20,000/-. This deduction is over and above the limit of Rs. 1,00,000/- specified u/s 80CCE. Deduction Extended for further period of One Year. | 1-4-2011 | ||||||||||||
| 80IA(4) | Deduction for Power Generating Units | Terminal date for setting up of generation or distribution of power or transmission or distribution thereof or undertaking substantial renovation or modernization of existing network has been extended to 31.3.2012 | 1-4-2011 | ||||||||||||
| 115BBD | Rate of Tax for Dividend | Dividend received by Indian Company from its Foreign Subsdiary Company shall be taxable @ 15% of Gross Amount without allowing any deduction in respect thereof | 1-4-2011 | ||||||||||||
| 115JB | MAT | - Rate of MAT is increase to 18.5% of Book Profits. MAT to be made applicable to developer of SEZ and Units in SEZs in the Income Tax Act as well as SEZ Act | 1-4-2011 | ||||||||||||
| 115O | Dividend Distribution Tax | Exemption from DDT to SEZ Developers and Units in SEZ has been removed | 1-6-2011 | ||||||||||||
| 115R(2) | Tax on Distribution by MF | Mutual Fund shall be liable to pay additional income tax @ 30% on distributed income [from Money Market Mutual Funs or Liquid Fund or any debt fund] , if recipient is any person other than individual or HUF. | 1-6-2011 | ||||||||||||
| 139(1C) | Filing of Return of Income | Salaried persons not having any other source of income and whose tax liability has been discharged by way of TDS u/s 192, are not required to file their return of income. | 1-6-2011 | ||||||||||||
| XII BA | AMT | - Alternate Minimum Tax [AMT] @ 18.5% to be levied on Adjusted Total Income of LLP. - Adjusted Total Income shall be Total Income of the LLP before giving effect to provisions of Chapter XII BA and Deduction u/c VI-A - deduction relating to incomes and deduction u/s 10AA. - Tax credit shall be allowed in respect of AMT Paid for a period of 10 Years. | 1-4-2011 |
Monday, February 28, 2011
BUDGET 2011 - INCOME TAX PERSPECTIVE
INCOME TAX BUDGET 2011 HIGHLIGHTS
The budget 2011 proposed following changes in relation to Income Tax:
1. The age for the purposes of recognizing senior citizen under the Act has been reduced to 60 Years from 65 Years.
2. The Basic Exemption Limit has been raised as follows:
For Senior Citizens (=> 80 Years): rs. 5,00,000
For Senior Citizens (=>60 < 80 Years) - Rs. 2,50,000
For Woman Assessees: Rs. 1,90,000
For others: Rs. 1,80,000
Slab rates remain unchanged
3. Surcharge on Domestic Companies reduced to 5% and Other Companies to 2%
4. The limit for regarding a receipt from trade, commerce or business as non charitable has been raised from Rs. 10 Lakhs to Rs. 25 Lakhs [From Ay 2012-13].
5.Weighted Deduction for Approved Scientific Research U/s 35 (2AA) has been raised from 175% to 200% [from AY 2012-13]
6. DDT to be applicable to SEZ Units w.e.f. 1.6.11
7. MAT to be applicable to SEZ Units w.e.f. AY 2012-13
8. Exemption to Power Sector u/s 80IA(4) extended till 31.3.2012.
9. MAT Increased to 18.5%. Alternate Minimum Tax @ 18.5% levied on LLP.
10. Salaried Class not having any other source of Income are not required to file their return of income w.e.f 1.6.11 subject to provision of s. 139(1C)
1. The age for the purposes of recognizing senior citizen under the Act has been reduced to 60 Years from 65 Years.
2. The Basic Exemption Limit has been raised as follows:
For Senior Citizens (=> 80 Years): rs. 5,00,000
For Senior Citizens (=>60 < 80 Years) - Rs. 2,50,000
For Woman Assessees: Rs. 1,90,000
For others: Rs. 1,80,000
Slab rates remain unchanged
3. Surcharge on Domestic Companies reduced to 5% and Other Companies to 2%
4. The limit for regarding a receipt from trade, commerce or business as non charitable has been raised from Rs. 10 Lakhs to Rs. 25 Lakhs [From Ay 2012-13].
5.Weighted Deduction for Approved Scientific Research U/s 35 (2AA) has been raised from 175% to 200% [from AY 2012-13]
6. DDT to be applicable to SEZ Units w.e.f. 1.6.11
7. MAT to be applicable to SEZ Units w.e.f. AY 2012-13
8. Exemption to Power Sector u/s 80IA(4) extended till 31.3.2012.
9. MAT Increased to 18.5%. Alternate Minimum Tax @ 18.5% levied on LLP.
10. Salaried Class not having any other source of Income are not required to file their return of income w.e.f 1.6.11 subject to provision of s. 139(1C)
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