exempt incomes, deductions and tds chart

81
Page 1 of 81 EXEMPT INCOMES Section Type of assessee Type of income Exempt amount Remarks 10(1) All assessees Agricultural income. No limit See definition – S. 2(1A). Income derived from any land or building for any purpose other than agriculure would be taxable. 10(2) Member of HUF Sum paid out of income of family or income of impartible estate. No limit Subject to the provision of S. 64(2). 10(2A) A person being a partner of a firm Share in the total income of the firm separately assessed as a firm. No limit For share of the partner see Explanation to this sub-section. 10(4)(i) Non-resident Interest on specified securities or bonds. No limit No securities or bonds to be specified on or after 1-6-2002. For specified securities see Notification No. SO-3331, dated 19-10- 1965. 10(4)(ii) Individual, being resident Interest from NRE No limit The exemption which

Upload: harkarma

Post on 07-Apr-2015

196 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Exempt Incomes, Deductions and TDS Chart

Page 1 of 61

EXEMPT INCOMES         

Section Type of assessee Type of income Exempt amount Remarks

10(1) All assessees Agricultural income. No limit See definition – S. 2(1A). Income derived from anyland or building for any purpose other than agriculure would be taxable.

10(2) Member of HUF Sum paid out of income of family or income of impartible estate.

No limit Subject to the provision of S. 64(2).

10(2A) A person being a partnerof a firm

Share in the total income of the firm separately assessed as a firm.

No limit For share of the partner see Explanation to this sub-section.

10(4)(i) Non-resident Interest on specified securities or bonds.

No limit No securities or bonds to be specified on or after 1-6-2002. For specified securities see Notification No. SO-3331, dated 19-10-1965.

10(4)(ii) Individual, being residentoutside India under FERApermitted by RBI to maintain NRE account

Interest from NRE account.

No limit The exemption which was withdrawn from 1st April, 2005 has been restored.

10(4B) Non-resident being acitizen of India or aperson of Indian origin

Interest on specified saving certificate issued before 1-6-2002 subscribed in foreign

No limit —

Page 2: Exempt Incomes, Deductions and TDS Chart

Page 2 of 61

currency.

10(7) Citizen of India Allowances or perquisites by Government for services rendered outside India.

No limit —

10(10BC) Individual or his legal heir Compensation from Central Government, State Government or Local authorities on account of any disaster.

No limit Exemption not allowed on the amount allowed as deduction under any other section under the Income-tax Act on account of loss or damage caused by such disaster.

10(10D) All assessees Any sum received under a life insurance policy including bonus.

No limit The following amount shall not be exempt : 1. Amount received from an insurance company on death of dependent being a person with disability in respect of an insurance policy issued to him for the maintenance of such dependent.2. Amount received under a Keyman Insurance Policy (For definition of “Keyman Insurance Policy” refer to Explanation to this sub- section.)3. Sum received under an insurance policy issued on or after 1-4-2003, where premium payable for any

Page 3: Exempt Incomes, Deductions and TDS Chart

Page 3 of 61

of the years exceeds 20% of the actual capital sum assured unless such sum is received on death of a person.

10(11) All assessees Payments from a statutory P.F. or public P.F.or from notified P.F.

No limit For notified P.F., refer Notification No. SO-2430dated 2-7-1968

10(12) Salaried employee Accumulated balances due from recognised Provident Fund

Full amount ofaccumulated balance

Employee has put in 5 or more years of service ortermination of service is due to his ill health or closure of employers business or the balance from recognised P.F. is transferred to another recognised fund.

10(13) Salaried employee Payment from approved superannuation fund

Full amount Payment is on death or on retirement after specified age or his becoming incapacitated prior to such retirement.

10(15)(i) All assessees Income by way of interest, premium on redemption or other payment from notified securities, bonds, certificates, etc. issued and notified by Central Government

Limits as specifiedin the Notification

10(15)(iib) Individual or HUF Interest on notified No limit No bonds to be specified

Page 4: Exempt Incomes, Deductions and TDS Chart

Page 4 of 61

capital investment bonds

on or after 1-6-2002.

10(15)(iid) Individual who is NRI at the time of acquisition of the bonds or his successor or the donee

Interest on notified Bonds being NRI Bonds 1988, NRI Bonds (second series) issued by SBI.

No limit No exemption available in the year of premature encashment. No bonds to be specified on or after 1-6-2002

10(15)(iv)(c) Non resident Interest payable by industrial undertaking on money borrowed or debt incurred prior to 1-6-2001 in foreign country in respect of purchase of raw materials, components or plant and machinery and approved by Central Government including usance interest payable outside India by an undertaking engaged in the business of ship breaking in respect of purchase of a ship from outside India.

No limit —

10(15)(iv)(fa) NR or NOR Interest paid by a scheduled bank on RBI approved foreign currency deposits, FCNR and RFC accounts

No limit The exemption which was withdrawn from 1-4-2005 has been restored.

10(15)(vi) All assessees Interest on Gold Deposit Bond Scheme, 1999.

No limit —

Page 5: Exempt Incomes, Deductions and TDS Chart

Page 5 of 61

10(15)(vii) All assessees Interest on notified bonds issued by a local authority or by a State Pooled Finance Entity

No limit Ahmedabad notified vide 812(E) dt. 21-8-2001, 364(E) dt. 16-3-2004, 407(E) dt. 24-3-2005, and 333(E) dt. 8-3-2007, Hyderabad notified vide 275(E) dt. 4-3-2002, and 1482(E) dt. 29-12-2003, Nashik notified vide 269(E) dt. 7-3-2003, Tamil Nadu notified vide 545(E) dt. 12-5 2003, Chennai notified vide 392(E) dt. 23-3-2004, 402(E) dt. 23-3-2005 and 408(E) dt. 24-3-2005, Karnataka notified vide 941(E), dt. 20-8-2004, and 729 (E) dt 27-5-2005, Visakhapatnam notified vide 1481(E) dt. 29-12-2003,Nagpur notified vide 10(E) dt. 4-1-2007

10(15)(viii) NR or NOR Interest on deposit made on or after 1-4-2005 in an offshore banking unit referred to in Special Economic Zones Act, 2005

— —

10(16) Individual Scholarship granted to meet cost of education.

No limit —

10(17A) All assessees Payment in cash/kind as award instituted by

No limit —

Page 6: Exempt Incomes, Deductions and TDS Chart

Page 6 of 61

Central/State Government or award instituted by the Central Government approved body

10(18) Central or StateGovernment employee

Pension. No limit Such employee is awarded Param Vir Chakra or Maha Vir Chakra or Vir Chakra or such other notified gallantry award.

  Any family member ofan employee referred above

Family Pension. No limit —

10(19) Widow, children or nomi-nated heir of a member ofthe armed forces (includingparamilitary forces) of the Union

Family Pension. No limit Where the death of such member of the armed forces has occurred in the course of operational duties, in such circumstances and subject to such conditions as may be prescribed.

10(23AAA) Any person on behalf of employees welfare fund

Any income. No limit 1. Fund is approved by CIT.2. The income is applied or accumulated for application towards objects of the fund only.3. The funds are invested as permitted u/s. 11(5).4. The approval shall have effect for 3 years at a time

Page 7: Exempt Incomes, Deductions and TDS Chart

Page 7 of 61

10(23F) Approved Venture CapitalFund or Venture CapitalCompany

Dividend and LTCG in respect of equityshares of a Venture Capital Undertaking.

No limit It shall not apply to investment made after31-3-1999.

10(23FA) Same as per S. 10(23F) Dividend other than referred in Section115-O and LTCG in respect of equityshares of a venture capital undertaking.

No limit 1. Approved by Central Government.2. It shall not apply to investment made after31-3-2000.

10(23FB) Venture Capital Fund (VCF)or Venture Capital Company(VCC) set up to raise fundsfor Venture Capital Undertaking (VCU)

Income from investment in VCU

No limit 1. VCF/VCC granted registration under SEBI Act.2. VCF is operating under a registered trust deed oroperating as venture capital scheme of UTI.3. VCF/VCC fulfils conditions specified by SEBI.4. VCU must be referred to in SEBI (VCF) Regulations, 1996 and notified by CBDT.5. VCU must be engaged in specified businesses orindustries6. VCU must be domestic company, whose shares are not listed on recognised stock exchange in India

10(32) Individual — Parent All income of a minor Up to Rs. 1,500 —

Page 8: Exempt Incomes, Deductions and TDS Chart

Page 8 of 61

child which is clubbed. per minor child

10(33) All assessees Capital Gain arising on transfer of Unit 64 on or after 1-4-2002.

No limit —

10(34) All assessees Dividends referred to in sec. 115-O.

No limit —

10(35) All assessees • Income in respect of Units of UTI• Income in respect of Units of Mutual of UTI or Mutual Fund Fund specified u/s. 10(23D)

No limit Does not apply to income arising from transfer ofunits

10(36) All assessees LTCG on transfer of equity shares purchased between 1-3-2003 and 1-3-2004.

No limit 1. Such equity shares should be of a company which is part of BSE-500 Index as on 1-3-2003 or where shares are allotted through public issue after 1-3-2003 and listed on a recognised stock exchange in India before 1-3-20042. Transactions of purchase/sale are enteredthrough recognized stock exchanges in India.

10(37)(w.e.f.A.Y.2005-06)

Individual or HUF Capital gains arising from transfer by way of compulsory acquisition under any law of the agricultural land in

No limit 1. Land should have been used for agriculturalpurposes for at least last 2 years immediately preceding the date of

Page 9: Exempt Incomes, Deductions and TDS Chart

Page 9 of 61

urban area referred to in s. 2(14)(iii)(a) or (b) or a transfer the consideration for which is determined or approved by the Central Govt. or the RBI.

transfer.2. Exemption applies to compensation/consideration/additional compensation received on or after 1-4-2004

10(38)w.e.f.1-10-2004)

All assessees LTCG on transfer of equity share in company or a unit of an equity oriented fund where such transaction of sale is entered into on or after 1-10-2004 and is subjected to Securities Transaction Tax (STT).

No limit 1. For transactions subjected to STT please refer topic on Rates Click here. For definition of equity oriented fund, please refer Explanation to clause (38)2. LTCG of a company is however includible in computing book profits u/s. 115JB from A.Y. 2007-08

10A Industrial undertaking in1. Free Trade Zone (FTZ)

W.e.f. A.Y. 2000-01 income for 10 yearsfrom the year of Commercial Production.

100% (90% forA.Y. 2003-04) of the profits from export computed as profits of the business in proportion to export turnover to total turnover

1. Not formed by splitting up or reconstruction ofexisting business or by transferring used plantand machinery.2. Manufactures/produces articles or things(including computer software) and cutting andpolishing of precious and semi-precious stones3. No deduction u/s. 80-IA, u/s. 80-IB, u/s.80HH, and u/s. 80HHA in

  2. Electronic HardwareTechnology Park (EHTP) orSoftware Technology Park(STP) w.e.f. A.Y. 1994-95

W.e.f. A.Y. 2000-01 income for 10years from the year of CommercialProduction.

100% (90% forA.Y. 2003-04) of theprofits from exportcomputed as profitsof the business inproportion to export

Page 10: Exempt Incomes, Deductions and TDS Chart

Page 10 of 61

turnover to totalturnover

relation to the profitsand gains of the industrial undertaking.4. FTZ/EHTP/STP/SEZ to be notified by CentralGovernment.5. Deduction shall be allowed only up toA.Y. 2011-12. However, for SEZ unit thislimitation does not apply.6. Report of a Chartered Accountant certifyingdeduction to be furnished.7. Profit from domestic sales up to 25% of totalsales would be deemed to be profits from exportsonly for the A.Y. 2001-02.8. Availing the concession is at the option of theassessee.9. Profits from onsite development ofcomputer software outside India would bedeemed to be profits from export.10. In the event of transfer of undertaking under amalgamation or demerger, the deduction shall continue to be allowed to the amalgamated or

  3. Special Economic Zone(SEZ) w.e.f. A.Y. 2001-02

W.e.f. A.Y. 2001-02, income fromexports eligible for deduction for 10years from the year of commercialproduction

Undertakings in SEZ which begins to manufacture or produce on or after 1-4 -2003, exempt amount would be 100% of profits from export for first 5 assessment years, 50% for next two assessment years and for subsequentthree assessment years, amount transferred to Special Economic Zone Reinvestment Allowance Reserve Account not exceeding 50% of such profit

Page 11: Exempt Incomes, Deductions and TDS Chart

Page 11 of 61

the resulting company.11. No deduction shall be admissible to wouldting or demerged company in the year of amalgamation or demerger.12. Deduction not allowable if return not filed by due date u/s 139(1).13. Does not apply to any undertaking being unitreferred to in sec 2(zc) of the SEZ Act, 2005,which begins to manufacture or produce articles or things or computer software after 1-4-2005in any SEZ.14. The amount transferred to Reserve Account should be utilised for purposes specified insub-section (1B)

10AA Undetaking set up inSpecial Economic Zonew.e.f. A.Y. 2006-07

W.e.f. A.Y. 2006-07 income from exporteligible for deduction starting from the year of commercial production

100% of profit fromexport for first 5 A.Y, 50% for next 5 A.Y., & for subsequent 5 A.Y. amount trfd.to SEZ Reinvestment reserve A/c not

1. Not formed by splitting up or reconstruction of existing business or by transferring used plant and machinery.2. In the event of transfer of undertaking under amalgamation or

Page 12: Exempt Incomes, Deductions and TDS Chart

Page 12 of 61

exceeding 50% of such profit. Profits from export computed as profits of the undertaking in proportion to export turnover to total turnover of the undertaking

demerger, the deduction shall continue to be allowed to the amalgamated or the resulting company.3. No deduction shall be admissible to amalgamating or demerged company in the year of amalgamation or demerger4. Report of a Chartered Accountant certifying deduction to be furnished.5. The amount transferred to Reserve Account should be utilised for purposes specified in sub-section (2)

10B Undertaking approved asa 100% Export-orientedUndertaking under section14 of IDRA (100% EOU)

Same as Industrial undertaking inFree Trade Zone

Same as Industrialundertaking inFree Trade Zone

Same as 10A above, except No. 4

10BA Undertaking manufac-turing or producing“eligible articles or things”;i.e., all hand-made articlesor things, which are ofartistic value and whichrequires the use of woodas the main raw material

W.e.f. A. Y. 2004-05 income derived fromexport out of India of “eligible articles or things” up to A. Y. 2009-10.

Profits from exportcomputed as profits of the business inproportion to exportturnover to totalturnover

1. Undertaking which has claimed deductionu/s 10A or 10B for any assessment year shallnot be entitled to this deduction.2. Manufactures eligible articles or things withoutthe use of imported raw materials. It employs

Page 13: Exempt Incomes, Deductions and TDS Chart

Page 13 of 61

20 or more workers.3. Not formed by splitting up or reconstruction ofthe existing business or by transferring usedplant and machinery.4. 90% or more of its sales during the relevantprevious year are by way of the exports ofthe eligible articles or things.5. Report of a Chartered Accountant certifyingdeduction to be furnished.No other deduction allowed under any othersection in respect of the eligible export profit

10C Industrial undertaking inany Integrated Infrastruc-ture Development Centreor Industrial Growth Centrein North-Eastern region

Income of ten consecutive A.Ys. from the year of production up to A.Y. 2003-04.

No limit 1. Manufactures or produces any article or thing on or after 1-4-1998.2. Not formed by splitting up or reconstruction ofthe existing business or by transferring usedplant and machinery.3. No deduction u/ss. 80HH, 80HHA, 80-I, 80-IA,80-IB or 80JJA in relation to profit and gains ofthe industrial undertaking.

Page 14: Exempt Incomes, Deductions and TDS Chart

Page 14 of 61

4. No deduction is allowed if return not filed by due date prescribed u/s. 139(1).

For exemption under S. 10(5) — Leave travel concession or assistance, S. 10(10) — Gratuity, S. 10(10A) — Pension, S. 10(10AA) — Leave salary, S. 10(10B) — Compensation, S. 10(10C) Tax on perquisite, S. 10(10CC) — Voluntary retirement compensation, S. 10(13A) — HRA, and 10(14) — Special Allowance available to salaried employees. (Refer Topic on Salaries)

LIST OF BONDS, CERTIFICATES, ETC. SPECIFIED FOR THE PURPOSES OF SECTION 10(15)(I)

Sr. No.

Particulars of securities, etc. Maximum amount

Notification ref.

1 12 years National Savings Annuity Certificates Whole of the amount

No. SO 607(E) dt. 9-6-1989

2 National Defence Gold Bonds, 1980 Whole of the amount

— do —

3 Special Bearer Bonds, 1991 Whole of the amount

— do —

4 Treasury Savings Deposit Certificates (10 years) Whole of the amount

— do —

5 Post Office Cash Certificates (5 years) Whole of the amount

— do —

Page 15: Exempt Incomes, Deductions and TDS Chart

Page 15 of 61

6 National Plan Certificates (10 years) Whole of the amount

— do —

7 National Plan Savings Certificates (12 years) Whole of the amount

— do —

8 Post Office National Savings Certificates (12 years/7 years) Whole of the amount

— do —

9 Post Office Savings Bank Accounts Whole of the amount

— do —

10 Public Account of the nature referred to in item (6) in the Table below rule 4 of the Post Office Savings Account Rules, 1981

Rs. 5,000/- — do —

11 Post Office Cumulative Time Deposits Rules, 1981 Whole of the amount

— do —

12 Scheme of Fixed Deposits governed by the Government Savings Certificates (Fixed Deposits) Rules, 1968

Whole of the amount

— do —

13 Scheme of Fixed Deposits governed by the Post Office (Fixed Deposits) Rules, 1968

Whole of the amount

— do —

14 Special Deposit Scheme, 1981 Whole of the amount

— do —

15 Non-Resident (Non-repatriable) Rupee Deposit Scheme Whole of the amount

No. SO 653(E) dt. 31-8-1992

16 Resurgent India Bonds issued by the State Bank of India Whole of the amount

No. SO 844(E) dt. 21-9-1998

17 8.5% Tax Free SLR Power Bonds issued by Reserve Bank of India Whole of the amount

No. SO 742(E) of 2003 dt. 27-6-2003

18 India Millennium Deposits Whole of the amount

No. SO 1114(E) dt. 10-8-2005

Page 16: Exempt Incomes, Deductions and TDS Chart

Page 16 of 61

DEDUCTIONS AND REBATES

 

Section

Assessee Qualifying Payments/Income

Conditions/Incidents Qualifying Amt. Quantum

A. Important Deductions from Gross Total Income

80AC Assessee   Deduction u/s. 80-IA/80-IAB/80-IB/80-IC or 80-ID shall be allowed only if returns are  furnished within the time limit u/s. 139(1) w.e.f. 1-4-2008

   

80C Individual/ HUF

1. LIP; (restricted to 20% of capital sum assured).2. Assessee's own

1. LIP/PPF/ULIP of  self, spouse, children (including minors) or members of HUF.

Payments mentioned in column 3 subject

100% of the amount invested / paid or

Page 17: Exempt Incomes, Deductions and TDS Chart

Page 17 of 61

contribution to – (a) PF, (b) Superannuation Fund, (c) PPF; (d) RPF. 3. Contribution by a Government employee for securing deferred annuity or making provision for his spouse and children4. Contribution to ULIP of UTI or LIC Mutual Fund’s Dhanraksha 1989. 5. Subscription to NSC VIII Issues.6. Deposits under notified deposit scheme or notified pension fund set up by National Housing Bank. 7. Housing Loan repayments and certain payments for purchase / construction of a residential house property. 8. Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes;(b) authority constituted under any law for satisfying need for housing

2. PF contribution not to exceed 1/5th of salary.3. Land cost for residential house also qualifies. 4. Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee qualify for deduction under this section.5. House should not be transferred for 5 years. 6. Term Deposit mentioned at Point 15 would be for a fixed period of not less than five years and as per scheme to be notified by Central Government. 7. Shares and Debentures mentioned at Point No. 13 in previous column will have lock-in-period of three years. 8. No exemption should be claimed in respect of same investment u/s. 54EA/54EB/54EC. 9. Sum paid/invested need not be out of current year’s chargeable income.10. Payments referred to in Clauses (i) to (vii), Clauses (xii) to (xiii), Clauses (xiiic) to (xiva) & Clause (xv) of sub-

to limits and conditions mentioned in columns 3 and 4.

Rs. 1,00,000 whichever is less.Note : The total deduction thatan assessee can claim undersections 80C, 80CCC and 80CCD would be restricted toRs. 1,00,000 per annum as perthe provisions of section 80CCE

Page 18: Exempt Incomes, Deductions and TDS Chart

Page 18 of 61

accommodation or for planning, development or improvement of cities, towns and villages, or for both. 9. Payment to effect or keep in force a contract for notified annuity plan of LIC or of any other approved insurer. 10. Units of Mutual Fund or UTI.11. Contribution to notified Pension Fund set up by Mutual Fund.12. Tuition Fees (not donation development fees) towards full time education of any 2 Children of an individual paid to university, college, school or other educational institution situated in India.13. Investments in shares debentures of approved public company exclusively engaged infrastructure facility or power sector.14. Investments in units of notified mutual fund investing in approved public cos. as in 13 above.15. Term Deposit with

section (2) of section 88 shall be eligible for deduction under corresponding provision of this section.11 Where in any previous year an assessee -

A) terminates insurance contract by notice to this effect or where contract ceases due to failure to pay premium by not reviving insurance contract -(a) in case of single premium policy within 2 yrs. after the date of commencement of insurance;(b) in any other case before premium has been paid for 2 yrs.;

B) terminates his participation in any ULIP referred in Clauses (x) & (xi)

Page 19: Exempt Incomes, Deductions and TDS Chart

Page 19 of 61

scheduled bank.16. Deposit in Senior Citizen Savings Scheme 2004.17. Five year time deposit in account under Post Office Time Deposit Rules, 1981.18. Subscription to notified bonds issued by NABARD.19. Subscription to any notified security or notified deposit scheme of the Central Government.

of subsection (2), by notice to that effect or where he ceases to participate by reason of failure to pay any contribution, by not reviving his participation, before contribution in respect of such participation have been paid for 5 yrs.;

O RC) transfers the house referred to in Clause (xviii) of sub-section (2) before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him or receives back, whether by way of refund or otherwise, any sum specified in that Clause; then -(I) no deduction shall be allowed to the assessee -(1) with reference to any sum referred in Clauses (i), (x), (xi) & (xviii) of sub-section(2), paid in such P.Y.(II) the aggregate amt. of the deduction of the income so allowed in respect of P.Y. or yrs. preceding such P.Y. shall be deemed to be the income

Page 20: Exempt Incomes, Deductions and TDS Chart

Page 20 of 61

of the assessee in the P.Y. and shall be liable to tax in the A.Y. relevant to such P.Y.If any equity shares, or debenture with reference to the cost of which deduction under this section has been allowed are sold or transferred by the assessee to any person at any time within 3 yrs. from date of acquisition the amt. of deduction in respect of income so allowed shall be deemed to be income of assessee in P.Y. in which such sale or transfer has taken place and he shall be liable to pay tax in A.Y. relevant to such P.Y.If the assessee withdraws any amount including interest accrued thereon from an account under Senior Citizen’s Savings Scheme or under Post Office Time Deposit Ruleswithin expiry of 5 years from the date of itsdeposit, the amount withdrawn shall bedeemed to be the income of the assessee in theprevious year in which the

Page 21: Exempt Incomes, Deductions and TDS Chart

Page 21 of 61

amount iswithdrawn except in the case of death whenthe said amount is received by the nominee orthe legal heirs.The amount of interest withdrawn will not betaxable in the year of withdrawal if the samehas been included in the total income of theassessee of an earlier year.Note:- Effective from A.Y. 2008-09

80CCC Individual Payment made out of taxable income to LIC or to any other approved\ insurer under approved Pension Plan.

1. Rebate is allowable u/s. 88 up to A.Y. 2005-06.2. Deduction is allowable u/s. 80C w.e.f. A.Y.2006-073. Pension received or amount withdrawn by theassessee or his nominee is taxable in the year of receipt.4. The plan should be for receiving pension from a fund referred to in S. 10(23AAB).5. The amount of interest or bonus accrued or credited to the assessee’s account is not to be regarded as amount paid.

Amount paid for the purpose mentionedin column 3.

Lower of –a. Amount paid; orb. Rs. 10,000 (for A.Y. 2006-07)/ Rs. 1,00,000 (AY 2007-08onwards). (refer note in 80C above)

Page 22: Exempt Incomes, Deductions and TDS Chart

Page 22 of 61

80CCD Individualwho is anemployee,employed onor after1-1-2004/any otherindividual(self-employed)w.e.f. A.Y.2009-10

Amount paid or deposited in his account under a pension scheme notified by theGovernment.

1. Rebate is allowable u/s. 88 up to A.Y. 2005-06.2. Deduction is allowable u/s. 80C w.e.f. A.Y.2006-07.3. Pension received or amount withdrawn by theassessee or his nominee is taxable in the yearof receipt.4. Contribution by the employer to the notifiedpension scheme is deductible in the hands ofthe concerned employee in the year in whichcontribution is made. However, no deductionis available in respect of employer’scontribution which is in excess of 10% of thesalary.5. If deduction is claimed u/s. 80C, in respect ofthe same investment deduction is not availableu/s. 80CCD.6. For the purpose of point 4 mentioned above,salary includes dearness allowance, if the termsof employment so provide, but excludes all other

In case of an assesseewho is employedLower of –(a) amounts paid or deposited in his account as mentioned in column (3); or(b) 10% of salary. In case of an assessee who is not employed, Lower of –(a) amounts paid or deposited in his account as mentioned in column (3); or(b) 10% of his GTI.

Lower of –100% of the qualifying amount;or Rs 1,00,000(see note under section 80C).

Page 23: Exempt Incomes, Deductions and TDS Chart

Page 23 of 61

allowances and perquisites.

80CCF Individual/HUF

Amount paid or deposited as subscription to notified long term infrastructure bonds.

Deduction under this section is available w.e.f. AY 2011-12.

Amount paid ordeposited as subscription to notified long term infrastructure bonds.

Lower of –(a) Amount paid or depositedfor the purpose mentioned incolumn 3; OR(b) Rs. 20,000.

80D Individual/HUF

In case of an Individual -1 Aggregate of -(a) Premia paid out of taxable income to approved scheme of GIC (Mediclaim, Bhavishya Arogya) or any other approved insurer to insure the health ofassessee or his family; and(b) Contribution made to Central Government Health Scheme (w.e.f. AY 2011-12).2 Premia paid to insure health of the parent or parents of the assesseeIn case of HUF – Premia paid out of taxable income to approved scheme of GIC (Mediclaim, Bhavishya Arogya) or any other approved insurer to insure the health of any member of the HUF.

1. The amount should be paid by any mode otherthan cash w.e.f. 1-4-2008.2. W.e.f. AY 2009-10 in case premia is paid forsenior citizen the maximum deduction of Rs. 15,000 stands increased to Rs. 20,000.3. ‘Family’ means the spouse and dependentchildren of the assessee.

Amounts paid forthe purposes mentioned in column 3.

In case of Individuals -100% of premia paid to insurehealth of assessee or his familysubject to a maximum ofRs. 15,000 (if any of the personsfor whom premia is paid is asenior citizen the maximumamount is Rs. 20,000 instead of Rs. 15,000).Additional Deduction equivalent to amount paid as premia to insure health of the

Page 24: Exempt Incomes, Deductions and TDS Chart

Page 24 of 61

parent or parents of the assessee subject to a maximum of Rs.15,000 (if either parent or parents for whom premia is paid is a senior citizen the maximum amount of deduction is Rs. 20,000 instead of Rs. 15,000). In case of HUF :Premia paid to insure health ofany member of HUF subject to amaximum of Rs. 15,000 (in casepremia is paid for any member ofthe HUF who is a senior citizenthen the maximum amountstands increased from Rs. 15,000 to Rs. 20,000).

80DD Individual/HUF

1. Expenses incurred for Medical Treatment

1. For meaning of the word 'disability' reference is

— – Rs. 50,000 for ordinary

Page 25: Exempt Incomes, Deductions and TDS Chart

Page 25 of 61

(Resident) (including Nursing),Training & Rehabilitation of a dependent with disability).2. Amount paid/deposited under any scheme framed by LIC/UTI /approved insurer/administ-rator(now known as SpecifiedCompany), for payment of annuity or lump sum amount for the benefit of dependent being a person with disability.

to be made to Sec. 2(i) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995(PDEOPRFP), and sections 2(a), (c) and (h) ofthe National Trust for Welfare of Persons withAutism, Cerebral Palsy, Mental Retardation &Multiple Disabilities Act, 1999 (NTWPACPMRMD Act). Disabilities covered are blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, autism, cerebral palsy, multiple disability, mental retardation and mentalillness. (Defined in Expln. (f) to sec. 80DD).2. Under PDEOPRFP Act, a person with disabilitymeans a person suffering from not less than 40% of any disability and severe disability means 80% of one or more of such disability.3. A certificate in prescribed form and manner from medical authority as defined in Expln. (e) to sec. 80DD,

disability– Rs. 1,00,000 for severe disability (w.e.f. AY 2010-11) (prior to AY 2010-11 the deduction for severe disability was Rs. 75,000).

Page 26: Exempt Incomes, Deductions and TDS Chart

Page 26 of 61

stating the extent of disability and the validity of period, is required to besubmitted with the Return of Income. On expiry of the certificate a reassessment of the condition of disability is required to be done.4. Nomination can be either in favour of disableddependent or any other person or a trust in caseof investment in scheme.5. If the disabled dependent predeceases the individual or the member of HUF in whosename subscription is made then the entire amount paid/deposited in scheme will be treated as taxable income in the year of receipt.6. Handicapped dependent has been defined in Expln. (b) to sec. 80DD.7. "Person with disability” is defined in Expln. (f) and "Person with severe disability” is defined in Expln. (g) to sec. 80DD.8. Medical authority is defined in Expln. (c) to section 80DD.9. The dependent should not have claimed

Page 27: Exempt Incomes, Deductions and TDS Chart

Page 27 of 61

deduction u/s. 80U.

80DDB Individual/HUF(Resident)

Amount actually paid for medical treatment of such disease or ailments asmay be specified.

1. In case of an individual deduction is available for expenses on self or dependent. In case of HUF deduction is available for expenses on a member of HUF.2. Assessee is required to furnish along with the return of income a certificate in prescribed form from a neurologist, an oncologist, a urologist, a hematologist, an immunologist or such other specialist as may be prescribed, working in a Government Hospital.3. Refer to Explanation to Section 80DDB for definitions of relevant terms.

Amount actuallypaid for medicaltreatment of specified disease or ailments onassessee or dependent or member of HUF.

1) Lower of amount paid orRs. 40,000 (Rs. 60,000 for senior citizen).2) The amount of deduction isto be reduced by the amountreceived from an insurer of reimbursed by employer for the medical treatment.

80E Individual Payment (out of taxable income) of interest on loan taken for pursuing his own higher education or higher education of his relative (w.e.f. A.Y. 2008-09).

1. The loan should be from an approved charitable institution notified u/s. 10(23C)/referred to in S. 80G(2)(a)/a banking co./notified financial institution.2. Higher education includes any course pursued after passing Senior Secondary Examination or recognised equivalent examination.

Payment of interest on loan taken forpursuing highereducation.

The entire amount of interest is deductible without any limit.

Page 28: Exempt Incomes, Deductions and TDS Chart

Page 28 of 61

3. Deduction is available in the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid in full whichever is earlier.4. Initial assessment year is the assessment year relevant to the previous year in which the assessee starts paying interest on the loan.5. Relative in relation to an individual means thespouse and children of that individual.

80G Any Assessee[except u/s.80G (2)(c)]

Donations for charitable purposes specified in S. 80G(2).

1. Donations should not be in kind.2. If paid out of another year’s income or out ofincome not includible in the assessment of the current year the deduction still available (Lt. F.No. 45/313/66-ITJ(61) dt. 2-12-1966.

Amount ofDonations, notexceeding 10% ofGTI (As reduced by other deductions). In certain cases thislimit does not apply. Please see S. 80G(4).

1) 50% generally; and2) 100% in cases of PM’s ReliefFunds, Gujarat Earthquake Relief Funds, etc. [Ref. S.80G(1)(i)].

80GG Any Assessee[other thanhaving any

Expenditure incurred towards payment of rent in respect of furnished or unfurnished accommodation

1. This section does not apply where residentialaccommodation is owned by assessee, his spouse, minor

Expenditure in excess of 10% his total income incurred for the

Least of –i) Rs. 2,000/- per of month; orii) 25% of the

Page 29: Exempt Incomes, Deductions and TDS Chart

Page 29 of 61

income fallingu/s. 10(13A);i.e., HouseRent Allowance]

occupied for his own residence.

child or by HUF at a place where assessee ordinarily resides or performs the duties of his office or employment orcarries on his business or profession.2. This section does not apply where the assesseeowns residential accommodation at any other place, annual value of which has been computed u/s. 23(2)(a) or 23(4)(a).3. Assessee to submit a declaration in Form No.10BA with the Return of Income.4. Total income means Gross Total Income asreduced by (a) Long Term Capital Gains; (b) Short Term Capital Gain taxable u/s. 111A @ 15%; (c) income referred to in S. 115A; and (d) Amount deductible under S. 80CCC to 80U (except 80GG).

purpose mentionedin column 3.

total income whichever is less; oriii) Excess of actual rent paidover 10% of total income.

80GGA AnyAssesseeother thanan assesseewhose GrossTotal Incomeincludes

Payments made for scientific research or research in social science or statistical research or for carrying out any programme of rural development or implementing programme of

1. Donee should be approved u/s. 35 or 35CCA or 35AC. The deduction to which the assessee isentitled in respect of research association,university, college or other

Aggregate of amounts paid for the purposes and to the persons mentioned in column 3.

100% of the Qualifying Amount mentioned in column 5.

Page 30: Exempt Incomes, Deductions and TDS Chart

Page 30 of 61

income chargeable under the head 'Profits and Gains of Business orProfession'.

rural development or for eligible project / scheme.Payment should be made to research association, university, college or other institution or to Rural Development Fund or to National Urban Poverty Education Fund or to public sector company, or to local authority or to an association or institution for carrying out eligible scheme or project referred in sec. 35AC.

institution shall not be denied merely on the ground that after payment of such sum the approval granted to the association has been withdrawn. w.e.f. 1-4-2007.The deduction to which the assessee is entitled inrespect of programme of rural development shallnot be denied merely on the ground that after payment of such sum the approval to the programme has been withdrawn w.e.f. 1-4-2007.The deduction to which the assessee is entitled inrespect of programme of rural development shallnot be denied merely on the ground that afterpayment of such sum the eligibility has beenwithdrawn w.e.f. 1-4-2007.2 Payments in respect of which deduction has beenclaimed under this section do not qualify for deduction under any other provision of the Act for the same or any other assessment year.

80GGB IndianCompany

Any sum contributed to any political party or an electoral

1. For the meaning of term 'contribute', refer to

Amount ofContribution

100%

Page 31: Exempt Incomes, Deductions and TDS Chart

Page 31 of 61

trust. Explanation to section 80GGB.2. For the meaning of term 'political party', refer to Explanation to section 80GGC.3 Contributions to an electoral trust qualify fordeduction w.e.f. A.Y. 2010-11.

80GGC(w.e.f.22-9-2003)

AnyAssessee* 

Any sum contributed to any political party or an electoral trust.

1. For the meaning of term 'political party', refer to Explanation to section 80GGC.2 Contributions to an electoral trust qualify fordeduction w.e.f. A.Y. 2010-11.

Amount ofContribution.

100%

  [*except local authority and artificial juridical person wholly or partly funded by the Government]

     

 

Section

Eligible undertaking/enterprises Date of Commencemen

t

Conditions/Incidents

Amount of Deduction and

Period

80-IA 1 Infrastructure enterprise : business of (i)developing, (ii) operating and maintaining , or(iii) developing, operating and maintaining any -infrastructure facility — i.e., road, bridge, airport,port, waterways, rail systems, highway project,water treatment/water supply/irrigation/sanitation/sewerage/solid waste managementsystems/(Widening of an existing road by

After 1.4.1995 Infrastructure facility, starts providing Telecommunication Service or Developing an Industrial Park or Developing a Special Economic Zone or Generates Power or

100% for any 10 consecutive A.Ys. out of 15 A.Ys.. In case of road, highway projectwater supply project, port, etc. 100% for any 10

Page 32: Exempt Incomes, Deductions and TDS Chart

Page 32 of 61

constructing additional lanes as a part of highway project eligible as per circular No. 4/2010 dt. 18-5-2010)

commences Transmission or Distribution of Power or undertakes substantial renovation and modernisation of the existing transmission or distribution lines, now it will also be available to an undertaking which lays and begins to operate cross country natural gas distribution network w.e.f. 1-4-2008; i.e., A.Y. 2008-09.

consecutive A.Ys. out of 20 A.Ys.

  2 Telecommunication undertakings : basic orcellular, radio paging, domestic satellite service or network of trunking and electronic datainterchange services, broadband network &internet services.

1.4.1995 to31.3.2005

The benefit of section 80-IA shall not beavailable to an amalgamated or demergedentity after 1-4-2007.

100% for first 5 A.Ys., 30% for next 5 years.Any 10 consecutive A.Ys. out of first 15years.

  3 Industrial parks including Special EconomicZone : undertakings thata. develops;b. develops and operates; orc. maintains and operates a notified industrialpark or a notified SEZ.

In case of anindustrial park1.4.1997 to31.3.2011.In case of a SEZ 1.4.1997 to31.3.2006.

80-IA benefit will not be available to a person who executes a works contractw.e.f. 1-4-2000.

100% for 10 consecutive A.Ys. out of 15 years.

  4 Power undertakings :– undertakings engaged ina. generation; orb. generation and distribution of power.– undertakings engaged in transmission or

1.4.1993 to31.3.2011

1.4.1999 to

  100% for 10 consecutive A.Ys. out of 15 years.

Page 33: Exempt Incomes, Deductions and TDS Chart

Page 33 of 61

distribution (only profits derived from layingof such network of new lines)– undertakes substantial renovation andmodernization (i.e., increase in book value ofplant & machinery by 50% as compared tobook value as on 1-4-2004) of existingtransmission or distribution lines as definedin Explanation to sec. 80-1A(4)(iv)(c)

31.3.2011

1.4.2004 to31.3.2011

  5 Undertaking owned by an Indian company andset up for reconstruction or revival of a powergenerating plant:a) Indian company should be formed before30-11-2005 and notified by Central Govt.before 31-12-2005;b) Undertaking should begin to generate ortransmit or distribute power before 31-3-2007.Note : 1) All the assessees claiming benefitunder 80-IA is required (including companies and co-operative societies)to furnish separate Audit Report inForm No. 10CCB u/s. 80-IA w.e.f.A.Y. 2003-04.2) The assessee needs to comply with theconditions stipulated in sub-sections(3), (4) and (7) of section 80-1A.3) Explanation below sub-section (13) issubstituted retrospectively with effectfrom 1-4-2000 to clarify that thesection shall not apply to business inthe nature of works contract awardedby any person including the Central &State Governments executed by the undertaking or enterprises.

Upto 31.3.2011

Upto A.Y. 2009-10

   

Page 34: Exempt Incomes, Deductions and TDS Chart

Page 34 of 61

  6 Any undertaking carrying on the business oflaying and operating a cross country natural gasdistribution network, including pipelines andstorage facilities being an integral part of such network which has started or starts operation on orafter 1-4-2007.Note : 1) All the assessees claiming benefitunder 80-IA is required (including companies and co-operative societies) to furnish separate Audit Report in Form No. 10CCB u/s 80-IA w.e.f. A.Y. 2003-04.2) The assessee needs to comply with theconditions stipulated in sub-sections(3), (4) and (7) of section 80-1A.3) Explanation below sub-section (13) issubstituted retrospectively with effectfrom 1-4-2000 to clarify that thesection shall not apply to business inthe nature of works contract awardedby any person including the Central& State Governments executed by theundertaking or enterprises.

Upto A.Y. 2009-10

   

80-IB 1 Industrial Undertakings :      

  a) other than clause (b), (c) & (d) 1.4.1991 to31.3.1995

   

  b) SSI U/Cold Storage other than (c) & (d) below 1-4-1995 to31-3-2002

25% (30% for Cos.)

First 10 A.Ys.

[12 A.Ys. if assessee is a co-op. society]

  c) i. Backward State (Eighth Schedule) (In the case of State of Jammu & Kashmir, the date of 

1.4.1993 to 31.3.2004

100%25%(30% for

First 5 A.Ys.Next 5

[12 A.Ys. if assessee is a co-op. society]

Page 35: Exempt Incomes, Deductions and TDS Chart

Page 35 of 61

commencement has been extended to 31-3-2007)

Cos.) A.Ys.

  ii. Notified Industries in N.E. Region 1.4.1993 to 31.3.2004

100% First 10 A.Ys.

 

  d) Backward District — Category ‘A’ 1.10.1994 to 31.3.2004

100%25%(30% for Cos.)

First 5 A.Ys.Next 5 A.Ys.

[12 A.Ys. if assessee is a co-op. society]

  — Category ‘B’ 1.10.1994 to 31.3.2004

100%25%(30% for Cos.)

First 3 A.Ys.Next 5 A.Ys.

[12 A.Ys. if assessee is a co-op. society]

  2 Hotels (approved by prescribed authority) :        

  — Hilly Area/Rural Area/Place of Pilgrimage/other

notified areas

1.4.1990 to 31.3.1994or 1.4.1997 to 31.3.2001

50% First 10 A.Ys.

 

  — Other places 1.4.1991 to 31.3.1995 or 1.4.1997 to 31.3.2001

30% First 10 A.Ys.

 

  3 Undertaking developing & building housingprojects Conditions :i) Minimum plot area : one acre;ii) Where the buyer of the residential unit isnot an individual, not more than one unit inthe project shall be allotted to such buyerand where the buyer is an individual, nounit in the project shall be allotted to other such individual or spouse, minor children of

If approved byLocal Authority before 31.3.2008

100% 

Projectwise

1. The assessee has to comply with the conditions stipulated in sub section (10).2. Also refer to the definitions of relevant terms

Page 36: Exempt Incomes, Deductions and TDS Chart

Page 36 of 61

such individual or to the HUF in which suchindividual is the Karta (Applicable from A.Y.2010-11;iii) Residential unit has maximum built up areaof 1,000 sq. ft. in Delhi/Mumbai; 1,500sq. ft. in other areas. Built up area of shops/other commercial establishments not toexceed 3% (prior thereto it was 5%) ofaggregate; built up area or 5,000 sq. ft.(w.e.f. A.Y. 2010-11 prior thereto it was 2,000sq. ft.), whichever is higher (w.e.f. A.Y. 2010-11 prior thereto it was whichever is less).iv) Construction should be completed –Where project is approved before 1.4.2004 : on orbefore 31.3.2008 Where project is approved between 1.4.2004 and 31.3.2005 : within 4 years from the end of the F.Y. in which the project is approved by the local authority Where housing project is approved on or after 1.4.2005 : within 5 years from the end of the F.Y. in which the project is approved by the localauthority.An Explanation has been inserted withretrospective effect from 1st April 2001 to clarifythat deduction shall not be available to personexecuting the project as a works contract.

given in sub-section (10).

  4 Undertaking engaged in integrated business ofhandling, storage and transportation offoodgrains or the business of processing,preservation of packaging of fruits and

On or after1.4.2001

100%25% (30% for Cos.)

First 5. A.Ys.Next 5 A.Ys.

 

Page 37: Exempt Incomes, Deductions and TDS Chart

Page 37 of 61

vegetables,

  5 Business of building, owning and operating amultiplex theatre other than in Mumbai, Delhi,Kolkata or Chennai.

01.04.2002 to31.03.2005

50% First 5 A.Ys.

 

  6 Business of building owning and operating aconvention centre.

01.04.2002 to31.03.2005

50% First 5 A.Ys.

 

  7 Undertaking engaged in setting up and operatinga cold storage facility for agricultural produce,

01.04.1999 to31.03.2004

100%25% (30% for Cos.)

First 5 A.Ys.Next 5 A.Ys.

[12 A.Ys. in case of co-op. society].

  8 Undertaking engaged in operating andmaintaining a hospital with at least 100 beds in arural area.Note 1 : Deduction u/s 80-IB shall not beallowed w.e.f. A.Y. 2004-05 to thoseundertaking covered u/s 80-IC.Note 2 : No deduction u/s 80-IB (4) will beavailable to an industrial undertakingset up in the State of Jammu &Kashmir, which is engaged in themanufacture or production of anyitem listed in Part C of the ThirteenthSchedule ("the Negative list").

Hospitalconstructedbetween 1.10.2004and 31.3.2008

100% First 5 A.Ys.

The assessee has to comply with conditionsstipulated in sub-section (11B).

  9 An Industrial undertaking engaged in refining ofoil.

Starts refiningbefore 01.04.2009.

100% Effective fromA.Y. 2008-09.

7 consecutive A.Y.sincluding the initialA.Y.

 

  10 Hospitals located in any place outside the urban

Constructed &started between

100% Effective

5 year tax holiday.

To new Hospitals constructed and

Page 38: Exempt Incomes, Deductions and TDS Chart

Page 38 of 61

agglomerations [80-IB(11C)]. 01.04.2008 and31.03.2013.

fromA.Y. 2009-10.

hasstarted/starts functioning between01-04-2008 and 31-03-2013.

  Industrial undertaking other than infrastructure& development undertaking.

In case of industrial undertaking in State of J & K, the provision of the 1st provision shall have effect as if forthe figures, letters & words 31/3/07 has been substituted by the figures, letters & words 31/3/12.

80-IAB Undertaking which is engaged in development ofSpecial Economic Zones (SEZ).Notes:i) Where a Developer transfers the operation andmaintenance of such SEZ to another Developer,the deduction under sub-section (1) shall beallowed to the latter for the remaining period inthe ten consecutive assessment years;ii) Where an undertaking, being a developer, hadclaimed deduction u/s 80IA(13) it shall beentitled to claim deduction under this sectiononly for the unexpired period of ten consecutiveassessment years and thereafter it shall beeligible for deduction from income as providedin sub-section (1) or (2) as the case may be.iii) Provisions of sub-sections (5), (7) to (12) ofsection 80-IA shall apply to the SEZ.iv) "Developer" and "Special Economic Zone" shallhave meanings assigned to them in clauses (g)and (za) of section 2 of SEZ Act, 2005.

SEZ notified onor after 1-4-2005 under the SEZ Act, 2005.

100%   For 10 Consecutive A.Ys. out of 15 yearsbeginning from the year in which a SEZ has been notified.

80-IC 1 Undertaking which has begun or begins tomanufacture or produce or manufactures or

       

Page 39: Exempt Incomes, Deductions and TDS Chart

Page 39 of 61

produces and undertakes substantial expansion ofarticle or things not being article or thingspecified in Thirteenth Schedule in ExportProcessing Zone or Integrated InfrastructureDevelopment Centre or Industrial Growth Centreor Industrial Park or Software Technology Park,or Industrial Area or Theme Park as notified byboard and Central Government in :

  a) State of Sikkim; 23.12.2002 -01.04.2007

100% First 10 A.Ys.

 

  b) States of Himachal Pradesh & Uttaranchal; 07.01.2003 -01.04.2012

100%25% (30% for Cos.)

First 5 A.Ys.Next 5 A.Ys.

 

  c) North-Eastern States. 24.12.1997 -01.04.2007

100% First 10 A.Ys.

 

  2 Undertaking which has begun or begins tomanufacture or commences any operationspecified in Fourteenth Schedule or manufacturesand commences any such operation undertakessubstantial expansion article or things mentionedin Fourteenth Schedule:

       

  a) State of Sikkim; 23.12.2002 -01.04.2007

100% First 10 A.Ys.

 

  b) States of Himachal Pradesh & Uttaranchal; 07.01.2003 -01.04.2012

100%25% (30% for Cos.)

First 5 A.Ys.Next 5 A.Ys.

 

Page 40: Exempt Incomes, Deductions and TDS Chart

Page 40 of 61

  c) North-Eastern States. 24.12.1997 -01.04.2007

100% First 10 A.Ys.

 

  Notes:i) The Assessee must fulfil other conditionsprescribed u/s 80-IA, like Audit Report, etc.ii) No deduction under any other section in ChapterVIA or 10A or 10B in relation to the profits andgains of the undertaking or enterprise.iii) Period of 10 A.Ys. shall include period for whichdeduction availed u/s 80-IB/10C.iv) Provisions of S. 80-IA(5) and S. 80-IA(7) to80-IA(12), so far as may be, apply to the eligibleundertaking or enterprise under this section.v) The terms "industrial area", "industrial estate","industrial growth centre", "industrial park","initial assessment year", "integratedinfrastructure development centre", "north-eastern states", "software technology park","substantial expansion" and "theme park" shallhave the meanings assigned to them in S.80IA(8).

       

80 ID New hotels & convention centreProfits derived by an undertaking engaged in thebusiness of –

       

  (a) hotel of two-star, three-star or four-star category located in the specified area;

Functioning shouldcommence between1.4.2007 and

Deduction undersub-section (1) shallbe available

100% For First 5 years

Page 41: Exempt Incomes, Deductions and TDS Chart

Page 41 of 61

31.7.2010. only if(i) the eligiblebusiness is notformed by splittingup or reconstruction of business already in existence(ii) not formed by transfer to new business of buildingpreviously used ashotel or conventioncentre(iii) not formed bytransfer to a newbusiness of machineryor plant previouslyused for anypurpose(iv) report of audit

  (b) building, owning and operating a conventioncentre located in the specified area.

Convention Centreshould be cons-tructed between1.4.2007 and31.7.2010.

100% For first 5 years

  (c) hotel of two-star, three-star or four-star category located in the specified district having a World Heritage Site. Notes :i) The terms "convention centre", "specified area","specified district having a world heritage site","hotel" and "initial assessment year" shall havethe meanings assigned to them in S. 80ID(6).ii) Provisions of S. 80IA(5) and S. 80IA(8) to80IA(11), so far as may be, apply to the eligiblebusiness under this section.

Constructed and has started or startsfunctioning between1.4.2008 and31.3.2013.

100% For first 5 years

Page 42: Exempt Incomes, Deductions and TDS Chart

Page 42 of 61

in such form andcontaining suchparticulars as maybe prescribed is furnishedalong with thereturn of income.(2) no deductionshall be allowedu/s. 10AA & anyother section containedin ChapterVIA. 

80PCo-opera-tive Society*

1 Profits arising out of banking;cottage industries; marketing, processing,purchase related to agriculture; fishing andallied activities.

- 100%    

  2 Primary Co-operative Society engaged insupplying milk, oil seeds, fruits orvegetables grown by its member to specified

- 100%    

Page 43: Exempt Incomes, Deductions and TDS Chart

Page 43 of 61

bodies.

  3 Co-operative Society engaged in activitiesother than those specified in (1) and (2)above (either independent of or in additionto all or any of the activities so specified) -

       

  (a) if such co-operative society is aConsumer Co-operative Society;

  MaximumRs. 1,00,000

   

  (b) in any other case.   MaximumRs. 50,000

   

  4 Income by way of interest or dividendsderived from investments with any otherCo-operative Societies.

  100%    

  5 Income derived from letting godowns andwarehouses for storage, processing orfacilitating the marketing of commodities.

  100%    

  * Excluding all co-operative banks other than aprimary agricultural credit society or a primaryco-operative agricultural and rural developmentbank.

       

 

Section

Assessee Qualifying Payments/Income

Conditions/Incidents  DEDUCTIONS

        Qualifying Amt.

Quantum

80JJA Any Profits and gains derived — Such profits and Whole of such

Page 44: Exempt Incomes, Deductions and TDS Chart

Page 44 of 61

Assessee from business of collecting and processing or treating of bio-degradable waste for generating power or producing bio-fertilizers, bio-pesticides or other biological agents or for producing bio-gas or making pellets or briquettes for fuel or organic manure.

gains. profits and gains for 5 consecutive A.Ys. beginning with the A.Y. relevant to the P.Y. in which such business commences.

80JJAA IndianCompany

Additional wages paid to new regular workmen employed during the previous year.

1 Total income includes profits & gains derivedfrom any industrial undertaking engaged in production of article or thing.2 The industrial undertaking is not formed by reconstruction or splitting up of an existing one or amalgamation with another industrialundertaking.3 Auditors’ report in Form 10DA to be furnished.4 For definition of additional wages, regularworkman etc. refer to Explanation to section80JJAA.

Such additional wages.

30% of additional wages for first 3 A.Ys. including theyear in which suchemployment is provided.

Page 45: Exempt Incomes, Deductions and TDS Chart

Page 45 of 61

80QQB(w.e.f.A.Y.2004-05)

ResidentIndividual

a. Lump sum consideration for assignment or grant of any interest in copyright ofany book being a work of literary, artistic or scientific nature.b. Royalty or copyright fees (whether receivable in lump sum or otherwise) in respect of such book.

1 Income earned outside India should be broughtinto India within 6 months of the end of the P.Y. orthe time extended by RBI.2 Certificate in Form 10CCD should be furnished.3 In respect of income earned from source outside India, Certificate in Form No. 10H should befurnished.

Lump sum considerationin lieu of all rights.

Royalty or Copyright feessubject to a maximum of15% of the gross salevalue of books sold inthe Previous Year.

a) 100% of such consideration or Rs. 3 lakhs whichever is less.

b) Lower of –(i) Qualifying Amount; or(ii) Rs. 3 lakhs.

80RRB ResidentIndividualwho is apatentee

Income by way of Royalty in respect of patents.

1 Patents should have been registered on or after 01.04.2003 under Patent’s Act, 1970.2 Income earned outside India should be broughtinto India within 6 months of the end of the P.Y. orthe time extended by RBI.3 Certificate in prescribed form should be furnished. Form 10CCE if in India, Form 10H outside India.4 Various expressions/terms used

Income by way of Royalty.

Whole of such income or Rs. 3 lakhs whichever is less.

Page 46: Exempt Incomes, Deductions and TDS Chart

Page 46 of 61

have been defined in Explanation to Section 80RRB.5 Amount shall not exceed the amount of royalty under terms and conditions of a licence settled by controller under the Act.

80U ResidentIndividual

Income of a person with disability as defined.

Certificate from Medical Authority in the form andmanner prescribed (refer section 80DD).

Rs. 50,000Rs. 1,00,000(w.e.f. A.Y. 2010-11).

Ordinary DisabilitySevere Disability(Refer to Explanation tosection 80U for definitions ofvarious terms and expressionsused).

B. REBATES

88E All assessees Business income arising from Taxable Securities Transaction.

Proof of payment of Securities Transaction Tax (STT) in the prescribed form to be furnished with return.

Amount of STT paid.

Amount of RebateLOWER OF –(a) amount of STT paid; OR(b) the income-tax calculated at the average rate of tax.

 

Sectio Assessee Taxable Event Year in which Taxable Amount Taxable Remarks

Page 47: Exempt Incomes, Deductions and TDS Chart

Page 47 of 61

n

80CCA Individual HUF – Withdrawal of principal and/or interest on NSS Account.

P.Y. in which withdrawn. Whole of the amount withdrawn/received.

1 Amount paid after the death ofan individual to the legal heirs is not taxable. (Cir. No. 532 - dt.17.3.1989).

    – Bonus received on annuity plans of LIC notified u/s. 80CCA.

P.Y. in which received. — do — 2 Repayment of NSS is subject toTDS u/s. 194EE except whenmade to the heirs of the assessee.

    – Annuity or surrender value received in respect of such notified annuities.

— do — — do — —

80CCB IndividualHUF – Receipt of whole or part of amount invested either on repurchase of notified units or on termination of the plan.

P.Y. in which amount is so received.

To the extent oforiginal investment.

1 Deduction amount not exceeding Rs. 10,000 Amount received in excess of original investment is taxable as capital gains u/s. 45(6).2 Amount is subject to TDS u/s. 194F @ 20%.

Page 48: Exempt Incomes, Deductions and TDS Chart

Page 48 of 61

TDS CHART

 

Section

ApplicableRules

Nature of Payment

Exemption & Limit

Rate of Deduction for F. Y. 2010-11 (Ref. Note 1)

Procedure for Nil/Lower Deduction

Sec. 200 Return

Statement Form

No./ Due Date

(Refer Note 9)(W.e.f.

A.Y. 2011-12)

TDS Certificate

Form No./Due

Date

192 21A, 21AA,26A, 26B,30, 31, 31A31AB, 33

Salary to any person

a) Rs. 2,40,000 for seniorcitizen, Rs. 1,90,000/- forwoman assessee andRs.1,60,000 for othersafter considering deductionu/ss. 16, 80C, 80CCC,

As applicable toindividual Refer Part III of 1st Schedule of Finance Act, 2010

  Quarterlystatement in Form No. 24Q/ 15th July, 15th Oct.,15th Jan., 15th May (for last quarterended 31st

F. 16 and 12BA/F.16AABy 31st May from the close of the financial year

Page 49: Exempt Incomes, Deductions and TDS Chart

Page 49 of 61

80CCF, 80D, 80DD, 80DDB,80GG, 80E and 80U andloss under the head 'Incomefrom House Property'b) The employer has an optionnot to deduct tax on nonmonetary perquisitesprovided to employee andinstead, pay it himself.

March)

193ReferNote 3

28, 28AA,29C, 30,31, 31A,31AB

Interest on Securities to any resident

a) Rs. 2,500 for interest ondebentures paid by awidely held company (toa resident individual).b) Interest on any State orCentral Govt. Securityc) No tax is to be deductedon interest payable

Cos.FirmsCo-op.. Soc.Individual/HUF/AOP/BOI

10%10%10%

10%

1. Senior Citizen can furnish declaration induplicate in Form 15H if the tax on the estimated income is Rs. Nil. Refer Note 4.2. A person other than a company or a firm can furnish declaration in duplicate in Form 15G where the aggregate

Quarterlystatement in Form No. 26Q/ 15th July, 15th Oct., 15thJan., 15th May (for last quarterended 31st March)

Quarterly, within 15 days from the due date forfurnishing statement of TDS

Page 50: Exempt Incomes, Deductions and TDS Chart

Page 50 of 61

• To the Government,• To the RBI,• To LIC, GIC or any otherinsurer• To a corporation esta-blished by or undera Central Act which isexempt from IncomeTax by virtue of any law• To a mutual fundspecified u/s. 10(23D)• On any securitiesissued by a companyin a dematerialized formlisted on recognizedstock exchange in Indiad) Rs. 10,000 for 8% savings(taxable) Bonds,

income does exceed the maximum amount not liable to tax Refer Note 43. Payee can apply to the A.O. in Form 13.

Page 51: Exempt Incomes, Deductions and TDS Chart

Page 51 of 61

2003

194A 28, 28AA,29C, 30, 31,31A, 31AB

Interest (other than Interest on Securities) to resident

a) Rs. 10,000 where payer is a banking Co. or Co-operativeSociety engaged in BankingBusiness, or in case of Deposits with PO under a scheme notified by Central Govt. Rs. 5,000 in any other case (in case of Bank Interest and deposits with Housing finance companies. Limitwill apply qua each branch)b) Individual & HUF – notrequired to deduct tax.(subject to Note 6)c) W.e.f. 1-6-2007, Rs. 10,000for interest on deposit underSenior Citizens

Same as sec. 193 Same as sec. 193

Same as sec. 193

Same as sec. 193

Page 52: Exempt Incomes, Deductions and TDS Chart

Page 52 of 61

SavingsScheme, 2004d) No deduction required onfollowing interest payments:i) Firm to partnerii) On deposits with bankmade before 1-7-1995iii) Co-op. Soc. to memberor other Co-op. Soc.iv) Payment to UTI, LICor any other Insurancecompanyv) Payment to financialcorporation establishedunder any Central,State or Provincial Act.vi) Central Govt. toassessees on excesstax paid

Page 53: Exempt Incomes, Deductions and TDS Chart

Page 53 of 61

vii) Zero coupon bonds issuedby scheduled bank

194B 30, 31, 31A,31AB

Winnings fromlottery & crosswordpuzzles including card game or other game of any sort to any person (including winning in kind)

Up to 30th June, 2010Rs. 5,000

W.e.f. 1st July, 2010Rs. 10,000

Dom.Cos., FirmsNon-Dom.Cos.Co-op.Soc.Individual/HUF/AOP/BOI

30%

30%

30%30%

Not permissible Quarterlystatement in Form No. 26Q/15th July, 15thOct., 15th Jan., 15th May (for last quarterended 31st March)

F. 16AAs per S. 193 above

194BB 30, 31, 31A,31AB

Winnings from horseraces to any person

Upto 30th June, 2010Rs. 2,500W.e.f. 1st July, 2010Rs. 5,000

As per S. 194B above Not permissible Quarterlystatement in Form No. 26Q/15th July, 15thOct., 15th Jan.,15th May (for last quarterended 31st March)

F. 16AAs per S. 193 above

194C 28, 28AA Payment to Up to 30th June, Cos. Firms Payee to apply in Quarterly F. 16A

Page 54: Exempt Incomes, Deductions and TDS Chart

Page 54 of 61

ReferNote 3& 8

30, 31, 31A31AB

ResidentContractors by1. Central or StateGovt. or2. Local Authority or3. Corporation or4. Company or5. Co-op. Society or6. Any authority forhousing accommodationetc. or7. Any society or8. Trust or9. Any Government of foreign state or a foreign enterprise or BOI or AOP (w.e.f. 1-10-2009)10. University11. Firm12. Any individual or HUF(See Note 4)13. A O P14. BOI

2010(i) Rs. 20,000 per credit/payment and(ii) Rs. 50,000 per Financial Year W.e.f. 1st July, 2010(i) Rs. 30,000 per credit/payment and(ii) Rs. 75,000 per Financial Year

Co-op. Soc.Individuals/HUF/AOP/BOI

2 %

1%

F.13 to the A.O. to obtain certificate

statement in Form No. 26Q/ 15th July, 15thOct., 15th Jan., 15th May (for last quarter ended31st March)

As per S. 193 above.

194D 28, 28AA,30, 31, 31A,31AB

Insurance commissionto Resident

Up to 30th June, 2010Rs. 5,000W.e.f. 1st July,

CompaniesFirmsCo-op.Soc.Individual/HUF/

10%10%10%

Payee to apply in F.13 to the A.O. to obtain certificate

Quarterlystatement in Form No. 26Q/

F. 16AAs per S. 193 above

Page 55: Exempt Incomes, Deductions and TDS Chart

Page 55 of 61

2010Rs. 10,000

AOP/BOI – 10% 15th July, 15th Oct., 15thJan., 15th May (See note 7)

194E 26, 30, 31,31A, 31AB,37A

Payments to Non-resident sportsmen/sports association

Not applicable FirmCo-op.Soc.Individual/HUF/AOP/BOI –

10%10%

10%

Not permissible Quarterlystatement in Form No. 26Q/ 15th July, 15th Oct., 15thJan., 15th May (See note 7)

F. 16AAs per S. 193 above

194EE 29C, 30, 31,31A, 31AB

Payments of deposits under NSS to any person

Payments to heirs exempt.In any other case less thanRs. 2,500

FirmCo-op.Soc.For individuals/H U F

20%20%

20%

If F.15G/F.15H isfurnished by aresident individual

Quarterlystatement in Form No. 26Q/ 15th July, 15th Oct., 15thJan., 15th May (See note 7)

F. 16AAs per S. 193 above

194G 28, 28AA, 30,31, 31A,31AB

Commission/Remu-neration on sale oflottery tickets to any person

Rs. 1,000 Cos. Firms,Co-op.Soc.Individual/HUF/AOP/BOI –

10%10%

10%

Payee to apply in F.13 to the A.O. to obtain certificate

Quarterlystatement in FormNo. 26Q/15th July, 15th Oct., 15th

F. 16AAs per S. 193 above

Page 56: Exempt Incomes, Deductions and TDS Chart

Page 56 of 61

Jan., 15th May (See note 7)

194HReferNote 3

28, 28AA,30, 31, 31A,31AB

Commission orBrokerage to aresident

a) Individual & HUF – notrequired to deduct tax(Subject to Note 6)b) Up to 30th June, 2010Rs. 2,500 p.a.W.e.f. 1st July, 2010Rs. 5,000 p.a.c) No deduction forcommission or brokeragepayable to BSNL & MTNLto their PCO franchises

Cos. FirmsCo-op.Soc.Individual/HUF/AOP/BOI

10%10%

10%

Payee to apply in F. 13 to the A.O. to obtain certificate

Quarterlystatement in Form No. 26Q/ 15th July, 15th Oct., 15thJan., 15th May (See note 7)

F. 16AAs per S. 193 above

194-I 28, 28AA30, 31, 31A,31AB

Rents paid to anyresident for PlantMachinery, Equipment,

a) Individual & HUF – notrequired to deduct tax(Subject to Note 6)b) Up to 30th June, 2010Rs. 1,20,000 p.a. W.e.f. 1st

Cos./FirmsCo-op.Soc.Individual/HUF/AOP/BOI

2 %2 %

2%

Payee to apply in F. 13 to the A.O. to obtaincertificate

Quarterlystatement in Form No. 26Q/ 15th July, 15thOct., 15th Jan.,15th May (See note 7)

F. 16AAs per S. 193 above

Page 57: Exempt Incomes, Deductions and TDS Chart

Page 57 of 61

July, 2010 Rs. 1,80,000 p.a.c) No tax deduction if payee is Government/LocalAuthority

    Rents paid to anyresident for Land &Building, Furniture

  Cos./FirmsCo-op.Soc.Individuals/HUF/AOP/BOI

10%10%

10%

     

194JReferNote 3

28, 28AA,30, 31, 31A,31AB

Fees for professionalor technical services, Royalty and sum referred to in section 28(va) (i.e., non-compete& confidentialitypayments)paid to a resident

a) Individuals & HUFs arenot required to deduct tax(Subject to Note 6)b) Up to 30th June, 2010Rs. 20,000 p.a.W.e.f. 1st July, 2010 Rs. 30,000

Cos./FirmsCo-op.Soc.Individuals/HUF/AOP/BOI

10%10%

10%

Payee to apply in F. 13 to the A.O. to obtain certificate

Quarterlystatement in Form No. 26Q/ 15th July, 15thOct., 15th Jan., 15th May (See note 7)

F. 16AAs per S.193 above

194LA 28, 28AA, 30,31, 31A,31AB

Compensation toresident on acquisition of certain immovableproperty other thanspecified agricultural land

Rs. 1,00,000 p.a.

Cos., FirmsCo-op.Soc.Individuals/HUF/AOP/BOI

10%10%

10%

Payee to apply in F. 13 to the A.O. to obtaincertificate

Quarterlystatement in Form No. 26Q/15th July, 15thOct., 15th Jan., 15th May (See

F. 16AAs per S. 193 above

Page 58: Exempt Incomes, Deductions and TDS Chart

Page 58 of 61

note 7)

195ReferNote 3

26, 28, 28AA,29B, 30, 31A,31AB, 37A

Interest or othersums (other thansalary) paid to Non-residents or to foreign companies (not being dividends u/s. 55-Oafter 1-6-2003)

— As per double taxationavoidance treaty or as per Sch. 1, Part II to the Finance Act, 2010 whichever is beneficial to the assessee

1. Payee to apply in F. 13 to the A.O. to obtaincertificate2. Payee to apply in F. 15C/15D to the A.O. to obtaincertificate3. Payer may apply to A.O. to determineincome component in payment for lower deduction

Quarterlystatement in Form No. 26Q/ 15th July, 15thOct., 15th Jan., 15th May (See note 7)

F. 16AAs per S. 193 above

Notes:

1. Surcharge is applicable in the case of foreign companies @ 2.5% if sum exceeds Rs. 1 crore. Education Cess (2%) and secondary and higher education cess (1%) are applicable only in case of TDS in case of non-residents, foreign companies and on salary paid to residents.

Nature of Activity Salary Other than Salary 193, 194A, 194C, 194BB, 194D, 194E, 194EE, 194G, 194H, 194I, 194J, 194LA

Time of Deduction When salary is paid When income paid or credited to the account including interest "payable" or "suspense" a/c whichever is earlier.

Time of deposit of tax (where deduction is made on behalf of the Government)

On same day On same day

Page 59: Exempt Incomes, Deductions and TDS Chart

Page 59 of 61

Time of deposit of tax (where deduction is other than on behalf of Government)

Within one week from the last day of the month in which the deduction is made. Quarterly deduction from salary on June 15, September 15, December 15 and March 15 with prior approval of AO.

If credited on the date on which accounts are made, within two months from the end of the month in which income is credited. Any other case, within one week from the end of the month in which deduction is made. Quarterly deduction from other interest, insurance commission or other commission or brokerage on July 15, October 15, January 15 and April 15 with prior approval from AO.

2. Copies of Form Nos. 15G and 15H received by the payer have to be filed with the Chief Commissioner/Commissioner within 7 days of the succeeding month. A declaration for non-deduction of tax u/s. 197A can be furnished by the assessee only if his aggregate income is less than threshold limit. Senior Citizens can file declaration if tax on their estimated total income is likely to be NIL.

3. Consequences of delay in payment of TDS

If the person responsible for deducting and paying tax fails to do so, he shall be considered an assessee in default, liable to pay interest @ 12% p.a. on the amount of such tax from the date on which such tax was deductible to the date of deduction and @ 18% p.a. on the amount of such tax from the date of deduction to the date of actual payment, and penalty not exceeding the amount of tax and rigorous imprisonment ranging from 3 months to 7 years and fine. The interest payment needs to be made before filing of the Quarterly Return.

Disallowance due to non-deduction :

If tax deductible u/ss. 193, 194A, 194C, 194H, 194I, 194J and 195 is not deducted during the previous year or deducted and not paid before the due date of filing the return of income, the relevant expenditure otherwise allowable in computing total income of the payer would be liable for disallowance u/s. 40(a)(i)/(ia). However, wherever the deduction is made in a subsequent year or the payment is made after the due date of filing the return of income, the deduction will be allowed in the year in which TDS is paid. For details see section 40(a).

4. An individual or a HUF, who was liable to tax audit in the immediately preceding financial year shall be liable to deduct income-tax u/ss. 194A, 194C(2), 194H, 194-I & 194J. Payments made by way of fees which are exclusively for personal purposes will not attract provisions of sec. 194J.

5. Under Rule 31A where:

a. the deductor is an office of Government; or

Page 60: Exempt Incomes, Deductions and TDS Chart

Page 60 of 61

b. the deductor is a company; or

c. the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

d. the number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

the person responsible for the deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5" / 1.44 MB floppy diskette or CD-ROM of 650 MB capacity) along with Form 27A in paper format. In the case of other deductors, filing such returns on computer media is optional.

6. As per section 199, CBDT has been given the power to prescribe rules for the assessment year for which the credit of tax may be given and the manner in which such credit shall be given. Vide CBDT Press Release No. 402/92/2006-MC (27 of 2010) dt. 2-6-2010 CBDT has amended rules for allowing tax credit claimed in the return w.e.f. 1-4-2010. The forms for TDS certificate have been revised to include the receipt number of TDS return filed by the deductor. The TAN of the deductor, PAN of the deductee and receipt number of TDS return filed by deductor will form unique identification for tax credit

7. With effect from 1-4-2010, in case where deductee does not furnish PAN to the deductor following consequences will arise.

i. Tax will be deducted at the higher of rate specified in the relevant provisions, or rate in force or twenty per cent.

ii. Declaration u/s. 197A; i.e., declaration in Form 15G or 15H as the case may be are not valid

iii. Certificate of lower/nil deduction will not be issued in case of such deductee.

8. No TDS u/s. 194C on Transport Contractors if PAN is given.

9. Up to A.Y. 2010-11 dates for filing statement of TDS was as under:

Quarter ended of the financial year Due Date

30th June 15th July of the financial year

30th September 15th October of the financial year

31st December 15th January of the financial year

31st March 15th June of the financial year immediately following the financial

Page 61: Exempt Incomes, Deductions and TDS Chart

Page 61 of 61

year

For TDS Jurisdiction (click here)