taxguru.in-income tax benefits available only to individuals amp hufs

taxguru.in http://taxguru.in/income-tax/income-tax-benefits-individuals-hufs.html

Income Tax Benefits available only to Individuals & HUFs

Individual and HUF Benefits allowable

Individuals and HUFs constitute a large chunk of total taxpayers in India and their contribution in total taxcollection is substantial. The document includes the list of various benefits available to an Individual or an HUF,such as exemptions and deductions.

Benefits available only to Individuals & HUFs

A. Tax Rates and Relief[AY 2015-16]

S.N. Particulars Benefits Available to

1. Maximum amount of income which is not chargeable toIncome-tax

Rs. 2,50,000 Individual/HUF

2. Maximum amount of income which is not chargeable toIncome-tax in the hands of a resident senior citizen,

who is at least 60 Years of age at any time during theprevious year but less than 80 Years of age on the lastday of the previous year

Rs. 3,00,000 ResidentSenior Citizen

3. Maximum amount of income which is not chargeable toIncome-tax in the hands of a resident super seniorcitizen

who is at least 80 Years of age at any time during theprevious year

Rs. 5,00,000 ResidentSuper SeniorCitizen

4. Rebate to resident individual whose total income doesnot exceed Rs. 5,00,000 [Section 87A]

Tax payable but subject tomaximum of Rs. 2,000

ResidentIndividual

5. HUF is assessed to tax as a separate entity HUF is treated as a persondistinct from Individualmembers or Karta.

HUF

B. Income Exempt from Tax

S.N. Section Particulars Limit of exemption Available to

1. 10(2) Amount received by individual member fromHUF. [Subject to the provisions of Section 64(2)]

Entire amount Individual, beinga member of anHUF

2. 10(2A) Share of profit received by partners from apartnership firm.

Entire amount Partners in apartnership firm

3-4. 10(4)(ii) Interest on money standing to the credit in aNon-resident (External) account in India.

Entire amount Person residentoutside India(under FEMAAct) and personwho has beenpermitted tomaintain saidaccount by RBI

http://taxguru.in

http://taxguru.in/income-tax/income-tax-benefits-individuals-hufs.html

5. 10(4B) Interest on notified savings certificates issuedbefore 01-06-2002 by the Central Governmentand subscribed to in convertible foreignexchange.

Entire Amount Individual, beinga citizen of Indiaor a person ofIndian Origin,who is a nonresident.

6. 10(5) Leave travel concession or assistance receivedby an employee (Subject to certain conditionsand limited to amount actually spent)

Notes:

• The amount should be received by employeefrom his employer or former employer for leaveto any place in India during term of service orafter retirement/termination;

• Exemption shall be available for amountincurred in respect of fare for going anywhere inIndia by employee along with his family. Thefamily means — her/his spouse and children,parents, brothers and sisters only when they arewholly or mainly dependent on the assessee.

• The exemption can be availed for twojourneys in a block of 4 calendar years.

• Exemption shall be available for journeyperformed by a shortest route and by prescribedmode of transportations in prescribed situations.

Limited to amountactually spent andsubject to maximumlimits as specified

Individual –SalariedEmployee

7. 10(6)(ii) Remuneration received by ForeignDiplomats/Consulate and their staff (Subject toconditions)

Entire Amount Individual (notbeing a citizenof India)

8. 10(6)(vi) Remuneration received by non-Indian citizen asemployee of a foreign enterprise for servicesrendered in India, if:

a) Foreign enterprise is not engaged in anytrade or business in India

b) His stay in India does not exceed inaggregate a period of 90 days in such previousyear

c) Such remuneration is not liable to deductedfrom the income of employer chargeable underthis Act

Entire Amount Individual –SalariedEmployee (notbeing a citizenof India)

9. 10(6)(viii) Salary received by a non-resident, for servicesrendered in connection with his employment ona foreign ship if his total stay in India does notexceed 90 days in the previous year.

Entire Amount Non-residentIndividual –SalariedEmployee (notbeing a citizenof India)

10. 10(6)(xi) Remuneration received by an Individual, who isnot a citizen of India, as an employee of theGovernment of a foreign state during his stay inIndia in connection with his training in anyGovernment Office/Statutory Undertaking, etc.

Entire Amount Individual –SalariedEmployee (notbeing a citizenof India)

11. 10(7) Foreign allowances or perquisites paid orallowed by Government to its employees postedoutside India

Entire Amount Individual-SalariedEmployee(being a citizenof India)

12. 10(8) Foreign income and remuneration received fromForeign Government in connection with any co-operative technical assistance programme andprojects in accordance with agreement enteredinto by Central Government and ForeignGovernment (Subject to certain conditions).

Entire Amount Individual

13. 10(8A) Foreign income and remuneration received byconsultant (agreement relating to hisengagement must be approved) out of fundsmade available to an international organization(agency) under a technical assistance grantagreement between that agency and theGovernment of a foreign State (Subject tocertain conditions).

Entire Amount Individual, beinga:

a) A non-residentengaged by theagency forrenderingtechnicalservices inIndia;

b) Non-Indiancitizen; or

c) Indian citizenwho is notordinarilyresident in India

14. 10(8B) Foreign income and remuneration received byan employee off the consultant as referred to inSection 10(8A) (contract of service must beapproved by the prescribed authority beforecommencement of service).

Entire Amount Individual, beinga:

a) Non-Indiancitizen; or

b) Indian citizenwho is notordinarilyresident in India

15. 10(9) Income of any member of family of any individual[referred to in section 10(8), 10(8A) or 10(8B)]which accrues or arises outside India and is notdeemed to accrue or arise in India and which issubject to tax in that foreign country


16. 10(10) Death-cum-Retirement Gratuity received by:

(i) Government employees

Entire Amount Individual –SalariedEmployee

(ii) Other employees who are covered underGratuity Act, 1972

Least of followingamount is exemptfrom tax:

1. (*15/26) X Lastdrawn salary** Xcompleted year ofservice or partthereof in excess of 6months.

2. Rs. 10,00,000

3. Gratuity actuallyreceived.

*7 days in case ofemployee ofseasonalestablishment.

** Salary = Lastdrawn salaryincluding DA butexcluding any bonus,commission, HRA,overtime and anyother allowance,benefits or perquisite

(iii) Other employees who are not covered underGratuity Act, 1972

Least of followingamount is exemptfrom tax:

1. 1/2 X AverageSalary* X Completedyears of service

2. Rs. 10,00,000

3. Gratuity actuallyreceived.

*Average salary =Average Salary oflast 10 monthsimmediatelypreceding the monthof retirement

**Salary = Basic Pay+ DearnessAllowance (to theextent it forms part ofretirement benefits)+turnover basedcommission

17. 10(10A) Commuted value of pension received by:

a) Government employee


b) Other employees 1. 1/3rd of full valueof commutedpension, if gratuity isreceived by theemployee

2. 1/2 of full value ofcommuted pension, ifgratuity is notreceived by theemployee

18. 10(10AA) Encashment of unutilized earned leave at thetime of retirement by:

a) Government employee;


b) Other employees Least of the followingshall be exempt fromtax:

a) Amount actuallyreceived

b) Unutilized earnedleave* X Averagemonthly salary

c) 10 monthsAverage Salary**

d) Rs. 3,00,000

*While computingunutilized earnedleave, earned leaveentitlements cannotexceed 30 days foreach year of servicerendered to thecurrent employer

**Average salary =Average Salary*** oflast 10 monthsimmediatelypreceding theretirement

***Salary = BasicPay + DearnessAllowance (to theextent it forms part ofretirement benefits)+turnover basedcommission

19. 10(10B) Retrenchment Compensation received by aworkman under the Industrial Dispute Act, 1947.(Subject to certain conditions)

Least of the followingshall be exempt fromtax:

a) an amountcalculated as persection 25F(b) of theIndustrial DisputesAct, 1947;

b) Rs. 5,00,000; or

c) Amount actuallyreceived.

Individual –SalariedWorkmen

20. 10(10BC) Compensation received for any disaster fromGovernment/ Local Authority (Subject to certainconditions)

Entire amount exceptfor the amountallowed as deductionunder this Act onaccount of losscaused by suchdisaster.

Individual or hisLegal heir

21. 10(10C) Amount received on Voluntary Retirement orVoluntary Separation (Subject to certainconditions).

Least of the followingis exempt from tax:

1) Actual amountreceived as per theguidelines i.e. least ofthe following

a) 3 months salaryfor each completedyear of services

b) Salary at the timeof retirement X No. ofmonths of servicesleft for retirement; or

2) Rs. 5,00,000


22. 10(10CC) Tax paid by the employer on perquisites (notprovided for by way of monetary payments)given to employee


23. 10(10D) Any sum received under a Life Insurance Policyincluding bonus (excluding Keyman InsurancePolicy) (Subject to certain conditions)

Entire Amount Any Assessee

24. 10(11) Payment from Public Provident Fund orStatutory Provident Fund

Entire Amount Individual andHUF

25. 10(12) Accumulated balance payable to employeeparticipating in recognized PF (subject to certainconditions).

To the extentprovided in Rule 8 ofPart A of the FourthSchedule of theIncome-Tax Act.


26. 10(13) Payment from Approved Superannuation Fundon death or retirement of employee, etc.(Subject to certain conditions)

Exempt subject tocertain limits


27. 10(13A) House Rent Allowance Least of the followingis exempt from tax:

(i) 50% of salary* formetro cities** and40% of salary forother cities

(ii) Actual HRAreceived

(iii) Excess of rentpaid over 10% ofsalary*

* Salary = Aggregateof basic salary, DA(to the extent it formspart of retirementbenefits) andturnover basedcommission

** Delhi, Mumbai,Kolkata, Chennai


28. 10(14) Prescribed allowances for performance of officialduties.

To the extentallowance actuallyincurred for theperformance ofofficial duties.


29. 10(15)(iib) Interest on Notified Capital Investment Bondsnotified prior to 01-06-2002.

Interest Amount Individual andHUF

10(15)(iic) Interest on notified Relief Bonds. Interest Amount Individual andHUF

10(15)(iid) Interest on notified bonds (notified prior to 01-06-2002) purchased in foreign exchange(subject to certain conditions)

Interest Amount Individual, beinga:

a) NRI ornominee orsurvivor of NRI;

b) Individual towhom bondshave beengifted by NRI.

10(15)(iv)(fa)

Interest payable by scheduled bank on depositsin foreign currency where acceptance of suchdeposits by the bank is duly approved by RBI.

Interest Amount a) Non-resident

b) Individual orHUF being aresident but notordinaryresident

10(15)(iv)(i)

Interest received from Government on depositsin notified scheme out of moneys due onaccount of retirement.

Interest Amount Individual, beingan employee ofCentral andStateGovernment orPublic SectorCompany.

10(15)(viii) Interest on deposits made on or after01.04.2005 is an offshore banking unit referredto in Section 2(u) of the Special EconomicZones Act, 2005.

Interest Amount Person who is anon-resident ornot ordinarilyresident.

30. 10(16) Scholarships granted to meet the cost ofeducation.


31. 10(17)(i) Daily Allowances received by members ofParliament.

Entire Amount Individual –Member ofParliament orStateLegislature orany Committeethereof.

10(17)(ii) Any Allowance received by MP under Memberof Parliament (Constituency Allowance) Rules,1986.

Entire Amount Individual –Member ofParliament

10(17)(iii) Any Constituency Allowance received. Entire Amount Individual –Member of StateLegislature

32. 10(18) Pension received by an individual who has wonspecified/notified gallantry awards and familypension received by any family member of suchindividual

Entire Amount Individual –Central or StateGovernmentEmployees orhis familymember

33. 10(19) Family pension received by the widow, childrenor nominated heirs of a member of the armedforces (including paramilitary forces) wheredeath of such member has occurred in thecourse of operational duties (subject toprescribed conditions and circumstances)

Entire Amount Individual –Widow orchildren ornominated heirsof members ofthe armedforces.

34. 10(19A) Notional annual value of any one palaceoccupied by former Ruler.

Entire amount Individual

35. 10(26) Specified income of a member of SpecifiedScheduled Tribes residing in Specified Areas.

Entire Amount Individual beinga member ofScheduled Tribe

36. 10(26AAA) Income from any source in the State of Sikkim orincome by way of dividend or interest onsecurities (Subject to certain conditions).

Entire Amount Individual, beinga Sikkimese(other thanSikkimeseWoman who,after 31-03-2008, marriesnon-Sikkimese)

37. 10(32) Income of minor child clubbed under Section64(1A) with parent’s income.

Rs. 1,500 per child orIncome of Minor,whichever is lower

Individual

38. 10(37) Capital gains arising on compulsory acquisitionof urban agriculture land, if:

a) Compensation is received after 31-03-2004;and

b) Agriculture land was used by taxpayer or hisparents for agricultural purpose during last twoyears

(Subject to certain conditions)

Entire Amount ofcapital gains

Individual andHUF

39. 10(43) Amount received by an Individual as a loanunder reverse mortgage scheme referred to inSection 47(xvi)


40. 10(45) Any notified allowance/ perquisite paid to theChairman/retired Chairman or any othermember/ retired member of UPSC

Entire Amount Individual –Chairman/RetiredChairman orany othermember/ retiredmember ofUPSC

*For detailed conditions refer Income Tax Act, 1961

C. Deductions allowable from Taxable Income to Individual/ HUF

S.N. Section Particulars Limit of exemption Available to

I. Deduction from Salaries

1. 16 (ii) Entertainment Allowance Least of the following is exemptfrom tax:

a) Rs 5,000

b) 1/5th of salary (excluding anyallowance, benefits or otherperquisite)

c) Actual entertainmentallowance received

Individual –GovernmentEmployee

2. 16 (iii) Employment Tax/Professional Tax. Amount actually paid during theyear


3. - Lump-sum payment made gratuitously orby way of compensation or otherwise towidow or other legal heirs of an employeewho dies while still in active service[Circular No. 573, dated 21-08-1990]

Enter amount paid in lump-sum Individual –Widow orother legalheirs ofemployee.

4. - Ex-gratia payment to a person (or legalheirs) by Central or State Government,Local Authority or Public SectorUndertaking consequent upon injury to theperson or death of family member while onduty [Circular No. 776, dated 08-06-1999]

Enter amount paid as ex-gratia Individual orlegal heirs.

5. 89 Any portion of salary received in arrears orin advance or profit received in lieu ofsalary [Subject to certain conditions andcircumstances]

Relief to the extent computed inaccordance with Section 89


6. Allowances (Subject to certain conditionsand circumstances)

Various allowances allowed to anemployee are exempt from to taxup to certain limit*.

* Refer the document of‘Allowance available for differentcategory of taxpayers’


II. Income from Business and Profession

1. 44AD Computation of income from eligiblebusiness on presumptive basis underSection 44AD provided turnover of eligiblebusiness does not exceed Rs. 1 crore(Subject to certain conditions).

Presumptive income of eligiblebusiness shall be 8 % of grossreceipt or total turnover.

ResidentIndividual,ResidentHUF orResidentPartnershipFirm (Otherthan LLP)

III. Deductions from Capital Gains

1. 54 Investment of long-term capital gains,arising from sale of residential house orland appurtenant thereto, inpurchase/construction of one newresidential house (Subject to certainconditions and limits).

Amount invested in one newhouse or capital gain, whicheveris lower.

Individualand HUF

2. 54B Investment of capital gains, arising fromtransfer of land used for agriculturalpurposes by an individual or his parents ora HUF, in other agricultural land (Subject tocertain conditions and limits).

Amount invested in agriculturalland or capital gains, whicheveris lower.

Individualand HUF

3. 54F Investment of long-term capital gains,arising from transfer of any long term assetother than a residential house property, inone new residential house property,provided that on the date of transfer theassessee should not own more than oneresidential house property (Subject tocertain conditions and limits).

Amount invested in one newasset X capital gains/ etConsideration

Individualand HUF

4. 54GB Investment of long-term capital gainsarising from transfer of long-term capitalasset, being a residential property, forsubscribing the equity shares of an eligiblecompany and such company has, withinone year from the date of subscription,utilized this amount for purchase ofspecified new asset (subject to certainconditions and limits).

Amount invested in new asset byeligible Co. X Capital gains/NetConsideration

Individualand HUF

IV. Deductions from Income from Other Sources

1. 56(2)(vii)

Any sum of money or immovable propertyor movable property received withoutconsideration or for inadequateconsideration from a relative or member ofHUF (subject to certain conditions andcircumstances).

The whole amount received fromspecified relatives or in specifiedcircumstances shall not beincluded in taxable income.

Individualand HUF

V. General-Deductions related to certain payments

1. 80C 1. Life insurance premium for policy:

a) in case of individual, on life of assessee,assessee’s spouse and any child ofassessee

b) in case of HUF, on life of any member ofthe HUF

2. Sum paid under a contract for a deferredannuity:

a) in case of individual, on life of theindividual, individual’s spouse and any childof the individual (however, contract shouldnot contain an option to receive cashpayment in lieu of annuity)

3. Sum deducted from salary payable toGovernment servant for securing deferredannuity or making provision for hiswife/children [qualifying amount limited to20% of salary]

4. Contributions by an individual madeunder Employees’ Provident Fund Scheme

5. Contribution to Public Provident FundAccount in the name of:

a) in case of individual, such individual orhis spouse or any child of such individual

6. Contribution by an employee to arecognized provident fund

7. Contribution by an employee to anapproved superannuation fund

8. Subscription to any notified security ornotified deposit scheme of the CentralGovernment

Up to 1,50,000 (Subject tooverall limit of Rs. 1,50,000under Section 80C, 80CCC and80CCD)

Individualand HUF

9. Subscription to notified savingscertificates [National Savings Certificates(VIII Issue)]

10. Contribution for participation in unit-linked Insurance Plan of UTI:

a) in case of an individual, in the name ofthe individual, his spouse or any child ofsuch individual

b) in case of a HUF, in the name of anymember thereof

11. Contribution to notified unit-linkedinsurance plan of LIC Mutual Fund:

a) in the case of an individual, in the nameof the individual, his spouse or any child ofsuch individual

b) in the case of a HUF, in the name of anymember thereof

12. Subscription to notified deposit schemeor notified pension fund set up by NationalHousing Bank [Home Loan AccountScheme/National Housing Banks (TaxSaving) Term Deposit Scheme, 2008]

13. Tuition fees (excluding developmentfees, donations, etc.) paid by an individualto any university, college, school or othereducational institution situated in India, forfull time education of any 2 of his/herchildren

14. Certain payments forpurchase/construction of residential houseproperty

15. Subscription to notified schemes of (a)public sector companies engaged inproviding long-term finance forpurchase/construction of houses in India forresidential purposes/(b) authorityconstituted under any law for satisfyingneed for housing accommodation or forplanning, development or improvement ofcities, towns and villages, or for both

16. Sum paid towards notified annuity planof LIC or other insurer

17. Subscription to any units of any notified[u/s 10(23D)] Mutual Fund or the UTI(Equity Linked Saving Scheme, 2005)

18. Contribution by an individual to anypension fund set up by any mutual fundwhich is referred to in section 10(23D) or bythe UTI (UTI Retirement Benefit PensionFund)

19. Subscription to equity shares or

debentures forming part of any approvedeligible issue of capital made by a publiccompany or public financial institutions

20. Subscription to any units of anyapproved mutual fund referred to in section10(23D), provided amount of subscription tosuch units is subscribed only in ‘eligibleissue of capital’ referred to above.

21. Term deposits for a fixed period of notless than 5 years with a scheduled bank,and which is in accordance with a schemeframed and notified.

22. Subscription to notified bonds issued bythe NABARD.

23. Deposit in an account under the SeniorCitizen Savings Scheme Rules, 2004(subject to certain conditions)

24. 5-year term deposit in an account underthe Post Office Time Deposit Rules, 1981(subject to certain conditions)

2. 80CCC Contribution to certain specified PensionFunds of LIC/other insurer (Subject tocertain conditions).

Up to 1,00,000 (Subject tooverall limit of Rs. 1,50,000under Section 80C, 80CCC and80CCD)

Individual

3. 80CCD Contribution to Pension Scheme (NPS)notified by the Central Government(Subject to certain conditions).

10% of salary/gross totalincome* or Rs. 1,00,000**,whichever is less (Subject tooverall limit of Rs. 1,50,000under Section 80C, 80CCC and80CCD)

Individual

4. 80 CCG Amount invested by specified residentindividuals in listed shares or listed units inaccordance with notified scheme for a lock-in period of 3 years (Subject to certainconditions).

Deduction of 50% of totalinvestment subject to maximumof Rs. 25,000 is allowed for 3consecutive assessment years,beginning with the assessmentyear relevant to the previousyear in which the listed shares orlist units of equity oriented fundsare first acquired

SpecifiedResidentIndividual

5. 80D Medical insurance premium paid by anymode other than cash to LIC or any otherinsurer (Subject to certain conditions).

Notes:

•Deduction is available in respect of anypayment made by an assessee on accountof preventive health check-up of self,spouse, dependent children or parentduring the previous year up to a limit of fivethousand rupees within the existingprescribed limits above

• The age for defining a senior citizen isreduced from sixty five years to sixty

• Pyament may be paid in cash on accountof preventive health check-up.

1. In case of individuals,premium paid:

a) for self, spouse anddependent children: Rs. 15,000(Rs. 20,000 if person insured isa senior citizen); and

b) for parents of the assessee:(Additional) Rs. 15,000 (Rs.20,000 if person insured is asenior citizen)

2. In case of HUF, premium up toRs. 15,000 (Rs. 20,000 if personinsured is a senior citizen) paidto insure any member of thefamily.

Individualand HUF

6. 80DD a) Any expenditure incurred for the medicaltreatment (including nursing), training andrehabilitation of a dependent, being aperson with disability

b) Any amount paid or deposited under anapproved scheme framed in this behalf bythe LIC or any other insurer or theAdministrator or the specified company [asreferred to in UTI (Transfer of Undertaking &Repeal) Act, 2002] for the maintenance of adependent, being a person with disability

(Subject to certain conditions).

Rs. 50,000 (Rs. 1,00,000 in caseof severe disability)

ResidentIndividualand HUF

7. 80DDB Expenses actually paid for medicaltreatment of specified diseases andailments of:

a) In case of Individual: Assessee himself orwholly dependent spouse, children,parents, brothers and sisters

b) In case of HUF: Any member of the familywho is wholly dependent upon the family

(Subject to certain conditions).

Up to Rs. 40,000 (Rs. 60,000 incase of senior citizen)

ResidentIndividualand HUF

8. 80E Amount paid out of income chargeable totax by way of payment of interest on loantaken from financial institution/approvedcharitable institution for pursuing highereducation (Subject to certain conditions).

The amount of interest paidduring initial year and 7immediately succeedingassessment years (or until theabove interest is paid in full).

Individual

9. 80EE Interest payable on loan taken up to Rs. 25lakhs by taxpayer from any financialinstitution for the purpose of acquisition of aresidential house property whole valuedoes not exceed Rs. 40 lakhs (Subject tocertain conditions).

[This deduction will be allowed only duringAssessment Year 2014-15 and 2015-16]

One time deduction of up to Rs.1,00,000 towards interest onloan.

Individual

10. 80GG Rent paid for furnished/unfurnishedresidential accommodation (Subject tocertain conditions)

Least of the following shall beexempt from tax:

a) Rent paid in excess of 10% oftotal income*;

b) 25% of the Total Income; or

c) Rs. 2,000 per month.

Total Income = Gross totalincome minus long term capitalgains, short-term capital gainsunder section 111A, deductionsunder sections 80C to 80U(other than 80GG) and incomeunder section 115A

IndividualnotreceivingHRA

11. 80QQB Royalty income of authors of certainspecified category of books other than textbooks

Least of the following shall beexempt from tax:

a) In case of Lump sum payment– Amount of royalty incomesubject to maximum of Rs.3,00,000

b) In other cases — amount ofsuch income subject tomaximum of 15% of value ofbooks sold during the previousyear.

ResidentIndividual —Authors

12. 80RRB Royalty in respect of patents registered onor after 01.04.2003 (subject to certainconditions)

100% of royalty subject tomaximum of Rs. 3,00,000

ResidentIndividual –Patentee

13. 80 TTA Interest on deposits in saving account witha banking company, a post office, co-operative society engaged in bankingbusiness, etc. (Subject to certainconditions)

100% of amount of such incomesubject to maximum of Rs.10,000

Individualand HUF

14. 80U A resident individual who, at any time duringthe

previous year, is certified by the medicalauthority to be a person with disability [asdefined under Persons with Disabilities(Equal Opportunities, Protection

of Rights and Full Participation) Act, 1995]

Rs. 50,000 (Rs. 1,00,000 in caseof severe disability)

ResidentIndividual

* 10% of salary in case of employees otherwise 10% of gross total Income.

**Contribution made by the Central Government or any other employer to a pension scheme under Section80CCD(2) shall not be included in the limit of deduction of Rs. 1,50,000 provided under Section 80CCE.

D. Tax Deducted at Source and Advance Tax

S.N. Section Particulars Nature ofexemption

Availableto

1. 194C Lower rate of TDS under Section 194C in case ofpayments above threshold limit to a contractor or sub-contractor

Deduction of tax atsource at 1% ifrecipient is anIndividual or HUF

Individualor HUF

1A. 193 No TDS from interest paid on 4.25% National DefenceBonds, 1972, 4.25% National Defence Loan, 1968, or4.75% National Defence Loan, 1972

No TDS frominterest

ResidentIndividual

2. 193 No TDS from interest paid on debentures issued by acompany in which public are substantially interested.Provided interest is paid by account payee cheque.

No TDS if interestduring the financialyear does notexceed Rs. 5,000

ResidentIndividualor HUF

3. - No obligation to deduct tax at source under Section194A, 194C, 194H, 194-I and 194J if an Individual orHUF carries on a business or profession and total sales,turnover or gross receipts from such business orprofession does not exceed the monetary limit specifiedunder Section 44AB during the financial yearimmediately preceding the financial year in which sum isto be credited or paid.

Not liable todeduct tax atsource

Individualor HUF

4. 197A(1) No deduction of tax shall be made under Sections 194and 194EE, if resident individual furnishes to the payer awritten declaration in prescribed form that tax on hisestimated total income of the previous year will be nil.

No tax shall bededucted fromspecifiedpayments if thesum paid does notexceed themaximum amountwhich is notchargeable to tax

ResidentIndividual

5. 197A(1C) No deduction of tax shall be made under Sections 193,194, 194A, 194EE and 194K if resident senior citizenfurnishes to the payer a written declaration in prescribedform that tax on his estimated total income of theprevious year will be nil.

No tax shall bededucted fromspecifiedpayments

ResidentIndividual— SeniorCitizen andSuperSeniorCitizen

6. 207(2) Exemption from payment of advance tax by a residentsenior citizen or resident super senior citizen not havingany income from business or profession

(who is at least 60 Years of age at any time during theprevious year)

Not liable to payadvance tax

ResidentSeniorCitizen andResidentSuperSeniorCitizen

7. 44AD Exemption from payment of advance tax by a taxpayerwho has opted for presumptive taxation scheme underSection 44AD

Not liable to payadvance tax

ResidentIndividual,ResidentHUF orResidentPartnershipFirm (Otherthan LLP)

[As amended by Finance (No. 2) Act, 2014]

Source-Income Tax India Website

taxguru.in-income tax benefits available only to individuals amp hufs

Documents