Various Threshold Limits under Income Tax Act (AY 2015-16)
In Respect of exemptions, deduction etc Income Tax imposes various threshold limit. Like in respsect of Tax Rates or in respect of deduction under section 80C, 80D, 80U etc. Some of the Popular Limits are Tax Rates , Conveyance Allowance, HRA, Home Loan Interest, Deduction Under Section 80C, Leave Encashment, Gratuity, Medical Reimbursement etc.
Income Tax Act Specifies Threshold Limits for Ascertainment of Basic Exemption , For Various Allowance Available Under the Head Salary Income, House Property Income, For allowability of Expenses against Business Income, Exemption Against Capital Gain, Calculation of Capital Gain, Deduction available under various section of Income Tax Act,1961, TDS deductible, For Filing of Appeal, For Imposition of Penalty and Prosecution etc.
In this article we have discussed section wise Various Threshold Limits under the Income Tax Act
Various Threshold Limits under the Income Tax Act [AY 2015-16]
S.N.
Particulars
Threshold Limits
A.
Basic Exemption
1.
Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person
Rs. 2,50,000
2.
Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year)
Rs. 3,00,000
3.
Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen
(who is at least 80 Years of age at any time during the previous year)
Rs. 5,00,000
4.
Surcharge shall be charged at the rate of 10% of income-tax if net income exceeds Rs. 1 Crore in case of Individual, HUF, AOP, BOI, Firms, Co-operative Societies, Local Authorities (Subject to Marginal relief)
Rs. 1 Crore
5.
Surcharge shall be charged at the rate of 5% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 10% if net income exceeds Rs. 10 Crores in case of domestic company (Subject to Marginal relief)
Rs. 1 Crore / Rs. 10 Crore
6.
Surcharge shall be charged at the rate of 2% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 5% if net income exceeds Rs. 10 Crores in case of foreign company (Subject to Marginal relief)
Rs. 1 Crore / Rs. 10 Crore
S.N.
Particulars
Section
Threshold Limits (for exemptions and others)
B.
Under the head Salaries
1.
Entertainment Allowance (Exempt in case of Government employee only)
16(ii)
Least of the following is exempt from tax:
a) Rs 5,000
b) 1/5th of salary (excluding any allowance, benefit or perquisite)
c) Actual entertainment allowance received
2.
Encashment of unutilized earned leave at the time of retirement by an employee (other than Government employee)(Subject to certain conditions)
10(10AA)
Least of the following shall be exempt from tax:
a) Amount actually received
b) Unutilized earned leave** X Average monthly salary
c) 10 months Average Salary**
d) Rs. 3,00,000
*While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer
**Average salary = Average Salary*** of last 10 months immediately preceding the retirement
***Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
3.
Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947 (Subject to certain conditions).
10(10B)
Least of the following shall be exempt from tax:
a) an amount calculated as per 10(10B)of the Industrial Disputes Act, 1947;
b) Rs. 5,00,000; or
c) Amount actually received.
4.
Death -cum-Retirement Gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).
10(10)
Least of following amount is exempt from tax:
1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.
2. Rs. 10,00,000
3. Gratuity actually received.
*7 days in case of employee of seasonal establishment.
** Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite
5.
Death -cum-Retirement Gratuity received by other employees who are not covered under Gratuity Act, 1972 (other than Government employee)(Subject to certain conditions).
10(10)
Least of following amount is exempt from tax:
1. 1/2 X Average Salary* X Completed years of service
2. Rs. 10,00,000
3. Gratuity actually received.
*Average salary = Average Salary of last 10 months immediately preceding the month of retirement
**Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
6.
Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions
10(10C)
Least of the following is exempt from tax:
1) Actual amount received as per the guidelines i.e. least of the following
(a) 3 months salary for each completed year of services
(b) Salary at the time of retirement X No. of months of services left for retirement; or
2) Rs. 5,00,000
7.
Children Education Allowance
10(14)
Up to Rs. 100 per month per child up to a maximum of 2 children.
8.
Hostel Expenditure Allowance
10(14)
Up to Rs. 300 per month per child up to a maximum of 2 children.
9.
Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty
10(14)
Up to Rs. 800 per month (Rs. 1,600 per month for blind and handicapped employees)
10.
Medical Reimbursement
17(2) proviso
Up to Rs. 15,000 in aggregate in a year
11.
Transport Allowance to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.
Sec. 10(14) read with Rule 2BB
Amount of exemption shall be lower of following:
a) 70% of such allowance; or
b) Rs. 10,000 per month.
12.
Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)
10(45)
Up to Rs.14,000 per month for defraying the service of an orderly and for meeting expenses incurred to wards secretarial assistance an contract basis.
13.
Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
14.
Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
15.
Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Orissa
Sec. 10(14) read with Rule 2BB
Up to Rs. 200 per month
16.
Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Up to Rs. 2,600 per month
17.
Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Up to Rs. 1,000 per month
18.
Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Up to Rs. 3,900 per month
19.
Underground Allowance to employees working in uncongenial, unnatural climate in underground mines (Subject to certain conditions)
Sec. 10(14) read with Rule 2BB
Up to Rs. 800 per month
20.
High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)
b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)
21.
Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Up to Rs. 4,200 per month
22.
Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)
Sec. 10(14) read with Rule 2BB
Up to Rs. 3,250 per month
23.
Tax on contribution to an approved superannuation fund by the employer in respect of the employee
17(2)(vii)
To the extent it exceeds Rs.1,00,000 per year (not taxable if employer’s contribution is Rs. 1 lakh or less per year)
24.
Expense incurred by employer on providing educational facility to the children of the employee shall be exempt in the hands of an employee
Rule 3
Up to Rs.1,000 per month per child
25.
Interest on loan received from employer at concessional rate of interest couldn’t be taxed as perquisite in the hands of the employee
Rule 3
If aggregate amount of such loan during the relevant previous year does not exceed Rs.20,000
26.
Free meal provided to employees during office hours by the employer couldn’t be taxed as perquisite in the hands of the employees
Rule 3
If cost of such meal does not exceed Rs.50 per meal
27.
Value of any gift received by the employee or by member of his household from employer is exempt in the hands of the employee
Rule 3
Up to the extent of Rs.5,000 if received in kind
C.
Under the head Income from House Property
1.
Standard deductions
24(a)
30% of annual value
2.
Interest incurred on borrowed capital for construction/ acquisition of self-occupied house property (Subject to certain conditions)
24(b)
Up to Rs. 2,00,000
3.
Interest incurred on borrowed capital for re-construction, repair or renewal of self-occupied house property (Subject to certain conditions)
24(b) Up to Rs. 30,000
D.
Under the head Profits and Gains of Business or Profession
1.
Deduction under section 32AC is available if actual cost of new plant and machinery acquired and installed by a manufacturing company after 31-03-2013 but before 01-04-2015 exceeds Rs. 25/100 Crores, as the case may be (Subject to certain conditions).
32AC
15% of actual cost of new asset acquired and installed (if it exceeds Rs. 25 Crores/100 Crores, as the case may be)
2.
The agricultural extension project shall be considered for approval under section 35CCC if expenditure (not being expenditure in the nature of cost of any land or building) expected to be incurred on such project exceeds the threshold limit (Subject to certain conditions)
Rule 6AAD read with section 35CCC
Rs. 25,00,000
3.
Compulsory maintenance of prescribed books of account – Specified Profession (Subject to certain conditions and circumstances)
44AA
Persons carrying on specified profession and their gross receipts exceed Rs. 1,50,000 in all the three years immediately preceding the previous year
4.
Compulsory maintenance of books of account – Other business or profession
(Subject to certain conditions and circumstances)
44AA
1) If total sales, turnover or gross receipts exceeds Rs. 10,00,000 in any one of the three years immediately preceding the previous year; or
2) If income from business or profession exceeds Rs. 1,20,000 in any one of the three years immediately preceding the previous year
5.
Compulsory Audit of books of accounts (Subject to certain conditions and circumstances)
44AB
1) If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business; or
2) If gross receipts exceeds Rs. 25 Lakhs in any previous year, in case of profession.
6.
Limit on payments in cash for expenses/ liability (Subject to certain conditions and exceptions)
40A(3)
1) Rs. 20,000 (total payment to a person in a day)
2) Rs. 35,000 (total payment to a person in a day) for payments made for plying, hiring or leasing of goods carriage.
7.
Computation of income from eligible business on presumptive basis under Section 44AD (Subject to certain conditions).
44AD
Presumptive income of eligible business shall be 8 % of gross receipt or total turnover (if turnover of eligible business does not exceed Rs. 1 crore).
8.
Presumptive income of business of plying, hiring or leasing of goods carriage if taxpayer does not own more than 10 goods carriage (Subject to certain conditions)
44AE
Rs. 7,500 for every month during which the goods carriage is owned by the taxpayer
9.
Alternate Minimum Tax (in case of Individual, HUF, AOP or BOI)
(Subject to certain conditions)
115JC
18.5% of adjusted total income (plus surcharge and education cess) provided adjusted total income exceeds Rs. 20,00,000.
10.
Applicability of Domestic Transfer Pricing, if aggregate value of transactions with associated enterprises during the previous year exceeds the threshold limit
92BA
Rs. 5 Crores
11.
Every person who has entered into an international transaction or a specified domestic transaction shall keep and maintain the specified information and documents
Rule 10D read with section 92D
If aggregate value, as recorded in the books of account, of international transactions entered into by him exceeds Rs.1,00,00,000
E.
Under the head Income from Capital Gains
1.
Limit on investment made by an assessee in bonds of NHAI or REC etc., from long term capital gains arising from transfer of one or more original assets during the financial year, for claiming exemption (Subject to certain conditions)
54EC
Rs. 50,00,000 during the financial year in which original asset is transferred and in subsequent financial year
F.
Under the head Income from Other Sources
1.
Gifts without consideration/ inadequate consideration from non-relatives (Subject to certain conditions)
56
Gift up to Rs. 50,000 is not chargeable to tax
2.
Standard Deduction for family pension
57(iia)
33.33% of Family Pension subject to maximum of Rs. 15,000
G.
Trust
1.
Activity for advancement of any other object of general public utility shall be considered as charitable activity
2(15)
If the aggregate value of the receipts from such activities does not exceed Rs. 25,00,000
2.
Anonymous donation to be taxed at the rate of 30%
115BBC
To the extent it exceeds 5% of total donations received by assessee or Rs.1,00,000, whichever is higher
3.
Annual receipts should not exceed the threshold limit for the purposes of claiming exemption under section 10(23C)(iiiad)/(iiiae)
Rule 2BC
Rs.1 Crore
4.
Maximum amount which an electoral trust can spend for managing its affairs
Rule 17CA
5% of the total contributions received in a year subject to an aggregate limit of Rs. 5,00,000 in the first year of incorporation and Rs.3,00,000 in subsequent year
H.
Deductions under Chapter VI-A
1.
Deduction to an individual and HUF for amount invested in following ways:
1. Life insurance premium for policy:
a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee
b) in case of HUF, on life of any member of the HUF
2. Sum paid under a contract for a deferred annuity:
a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]
4. Contributions by an individual made under Employees’ Provident Fund Scheme
5. Contribution to Public Provident Fund Account in the name of:
a) in case of individual, such individual or his spouse or any child of such individual
b) in case of HUF, any member thereof
6. Contribution by an employee to a recognized provident fund
7. Contribution by an employee to an approved superannuation fund
8. Subscription to any notified security or notified deposit scheme of the Central Government
9. Subscription to notified savings certificates[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 of the individual, his spouse or any child of such individual
b) in case of a HUF, in the name of any member thereof
11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund:
a) in the case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of a HUF, in the name of any member thereof
12. Subscription to notified deposit scheme or notified pension fund setup by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children
14. Certain payments for purchase/construction of residential house property
15. 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 accommodation or for planning, development or improvement of cities, towns and villages, or for both
16. Sum paid towards notified annuity plan of 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 any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above.
21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
22. Subscription to notified bonds issued by the NABARD.
23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)
80C
Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD)
2.
Contribution to certain specified Pension Funds of LIC/other insurer by an Individual (Subject to certain conditions).
80CCC
Up to 1,00,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD)
3.
Contribution to Pension Scheme (NPS) notified by the Central Government by an Individual (Subject to certain conditions).
80CCD
10% of salary/ gross total income[i] or Rs. 1,00,000[ii], whichever is less (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD)
4.
Amount invested by specified resident individuals, whose gross total income does not exceed Rs. 12 lakhs, in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions).
80CCG
Deduction of 50 % of total investment subject to maximum of Rs. 25,000 in 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired
5.
Medical insurance premium paid by any mode other than cash to LIC or any other insurer by an Individual or HUF (Subject to certain conditions).
Notes:
• Deduction is available in respect of any payment made by an assessee on account of preventive health check-up of self, spouse, dependent children or parent during the previous year up to a limit of five thousand rupees within the existing prescribed limits
• The age for defining a senior citizen is reduced from sixty five years to sixty
Payment on account of preventive health check-up may be made in cash.
80D
1. In case of individuals, premium paid:
a) for self, spouse and dependent children: Rs. 15,000 (Rs. 20,000 if person insured is a senior citizen);and
b) for parents of the assessee: (Additional) Rs. 15,000 (Rs. 20,000 if person insured is a senior citizen)
2. In case of HUF, premium up to Rs.15,000 (Rs. 20,000 if person insured is a senior citizen) paid to insure any member of the family.
6.
Deduction allowed to resident Individual and HUF for:
a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability
b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company [as referred to in UTI (Transfer of Undertaking & Repeal) Act, 2002] for the maintenance of a dependent, being a person with disability
(Subject to certain conditions).
80DD
Rs. 50,000 (Rs. 1,00,000 in case of severe disability)
7.
Expenses actually paid by resident individual and HUF for medical treatment of specified diseases and ailments of:
a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters
b) In case of HUF: Any member of the family who is wholly dependent upon the family
(Subject to certain conditions).
80DDB
Up to Rs. 40,000 (Rs. 60,000 in case of senior citizen)
8.
Interest payable on loan taken up to Rs. 25 lakhs by an individual taxpayer from any financial institution for the purpose of acquisition of a residential house property whose value does not exceed Rs. 40 lakhs (Subject to certain conditions).
[This deduction will be allowed only during Assessment Year 2014-15 and 2015-16]
80EE
One time deduction of up to Rs.1,00,000 towards interest on loan.
9.
Rent paid by an individual for furnished/unfurnished residential accommodation if he is not receiving any HRA (Subject to certain conditions)
80GG
Least of the following shall be exempt from tax:
a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) Rs. 2,000 per month.
Total Income = Gross total income minus capital gains, short term capital gains under section 111A, deductions under section 80C to 80U (other than 80GG) and income under section 115A
10.
Deduction in respect of certain donations for scientific, social or statistical research or rural development programme or for carrying out an eligible project or National Urban Poverty Eradication Fund shall be allowed (Subject to certain conditions)
80GGA
100% of donations or contributions made.
No deduction shall be allowed if contribution is paid in cash in excess of Rs.10,000
11.
Royalty income of resident individual – authors of certain specified category of books other than text books
80QQB
Least of the following shall be exempt from tax:
a) In case of Lump sum payment – Amount of royalty income subject to maximum of Rs. 3,00,000
b) In other cases – amount of such income subject to maximum of 15% of value of books sold during the previous year.
12.
Royalty in respect of patents registered on or after 01.04.2003 earned by resident individual (subject to certain conditions)
80RRB
100% of royalty subject to maximum of Rs. 3,00,000
13.
Interest on deposits in saving account of an Individual or HUF with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)
80 TTA
100% of amount of such income subject to maximum of Rs. 10,000
14.
A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]
80U
Rs. 50,000 (Rs. 1,00,000 in case of severe disability)
15.
Maximum amount of deduction available to specified co-operative societies if it is engaged in activities in addition to the prescribed activities (Subject to certain conditions)
80P
Rs.1,00,000 in case of consumer co-operative society or Rs.50,000 in any other case
16.
Deduction available to a co-operative society, (not being a housing society or an urban consumers’ society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power,) in respect of income by way of interest on securities or any income from house property
80P
If its gross total income does not exceed Rs.20,000
I.
Deduction of tax at source and Advance tax
1.
No deduction of tax at source from salaries
192
If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens)
2.
No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF
193
If amount paid or payable during the financial year does not exceed Rs. 5,000
3.
No TDS from interest on 8% Saving (Taxable) Bonds 2003 paid to a resident persons
193
If amount paid or payable during the financial year does not exceed Rs. 10,000
3A. No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual 193 If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year
4.
No TDS from dividend paid by account payee cheque to resident persons
194
If amount paid or payable during the financial year does not exceed Rs. 2,500
5.
No TDS from interest other than on securities paid by a banking company or co-operative bank on time deposits
194A
If amount paid or payable during the financial year does not exceed Rs. 10,000
6.
No TDS from interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004
194A
If amount paid or payable during the financial year does not exceed Rs. 10,000
7.
No TDS from interest other than on securities (in any other case)
194A
If amount paid or payable during the financial year does not exceed Rs. 5,000
8.
No TDS from interest on compensation awarded by Motor Accident Claims Tribunal
194A
If amount paid or payable during the financial year does not exceed Rs. 50,000
9.
No TDS from Lottery / Cross Word Puzzles
194B
If amount paid or payable during the financial year does not exceed Rs. 10,000
10.
No TDS from winnings from horse races
194BB
If amount paid or payable during the financial year does not exceed Rs. 5,000
11.
No TDS from sum paid or payable to contractor
194C
a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000
b) If sum paid or payable to contractor in aggregate does not exceed Rs. 75,000 during the financial year
12.
No TDS from insurance commission paid or payable during the financial year
194D
If amount paid or payable during the financial year does not exceed Rs. 20,000
12A No TDS from sum payable under a life insurance a police (including bonus) to a resident (w.e.f. 01-10-2014) person 194DA If amount paid or payable during the financial year does not exceed Rs. 1 lakh
13.
No TDS from payments made out of deposits under NSS
194EE
If amount paid or payable during the financial year does not exceed Rs. 2,500
14.
No TDS from commission paid on lottery tickets
194G
If amount paid or payable during the financial year does not exceed Rs. 1,000
15.
No TDS from payment of commission or brokerage
194H
If amount paid or payable during the financial year does not exceed Rs. 5,000. Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees.
16.
No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery
194-I
If amount paid or payable during the financial year does not exceed Rs. 1,80,000
17.
No TDS from payment of consideration for purchase of an immovable property (other than agriculture land)
194-IA
If amount paid or payable during the financial year does not exceed Rs. 50 Lakhs
18.
No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration
194J
If amount paid or payable during the financial year does not exceed Rs. 30,000
19.
No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land)
194LA
If amount paid or payable during the financial year does not exceed Rs. 2 Lakhs
20.
Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax
206A
If amount paid or payable during the financial year does not exceed:
a) Rs.10,000 where payer is banking company or co-operative society;
b) Rs.5,000 in other case
21.
Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery, shall, at the time of receipt of such amount in cash, collect from the buyer income-tax.
206C
1% of sale consideration shall be collected as income-tax if such consideration:
a) for bullion (excluding any coin or article weighing 10 grams or less), exceeds Rs. 2,00,000
b) for jewellery, exceeds Rs.5,00,000
22.
A person (not being a banking company) carrying on any business or profession in India may file an application for certificate authorizing receipt of interest and other sums without deduction of tax under section 195 (Subject to certain conditions).
Rule 29B
If he has been carrying on business or profession in India continuously for a period of not less than 5 years immediately preceding the date of the application and the value of the fixed assets in India of such business or profession as shown in his relevant books for the earlier year exceeds Rs.50,00,000
23.
Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish information in Part A of Form No.15CA
Rule 37BB
If the amount of payment does not exceedRs.50,000 or Rs.2,50,000 in aggregate during the financial year
24.
Liability for payment of advance tax
208
Taxpayer is liable to pay advance-tax if his advance tax liability exceeds Rs. 10,000
J.
Filing of Return and Assessment
1.
A person [other than a company and a person required to furnish return in form ITR 7] whose total income exceeds a threshold limit during the previous shall file its return of income electronically
139 read with Rule 12
If total income exceeds Rs. 5 lakh rupees during the previous year
2.
Issue of notice under section 148 to re-open assessment made under section 143(3) or 147 within 4 years from the end of relevant assessment year
149
If income escaping assessment is below Rs. 1,00,000
3.
Issue of notice under section 148 to re-open assessment made under section 143(3) or 147 within 6 years from the end of relevant assessment year
149
If income escaping assessment is above Rs. 1,00,000
K.
Penalties
1.
Penalty for failure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3)
234E
Rs. 200 for every day during which failure continues but not exceeding
tax deductible/collectible
2.
Penalty for failure to comply with a notice under section 143(2) or failure to comply with a direction under section 142(2A)
271(1)(b)
Rs. 10,000 for each failure
3.
Penalty for failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA
271A
Rs. 25,000
4.
Penalty for failure to get accounts audited or furnishing a report of audit as required under section 44AB
271B
One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, whichever is less
5.
Penalty for failure to furnish a report from an accountant as required by section 92E
271BA
Rs. 1,00,000
6.
Penalty for failure to furnish return as required by section 139(1) or by its proviso before the end of the relevant assessment year
271F
Rs. 5,000
7.
Penalty for failure to furnish statement of financial transactions or reportable account as required under section 285BA(1)
271FA
Rs. 100 per day of
Default
8.
Penalty for failure to furnish statement of financial transactions or reportable account within the period specified in notice issued under Section 285BA(5)
271FA
Rs. 500 per day of default
9.
Penalty for failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement
271H
Rs. 10,000 but may extend to Rs.1,00,000
10.
Penalty for refusal or failure to :
a) answer questions
b) sign statement
c) attend to give evidence or produce books of account, etc., incompliance with summons under section 131(1)
272A(1)
Rs. 10,000 for each failure/default
11.
Penalty for failure to:
a) furnish requisite information in respect of securities as required under section 94(6);
b) give notice of discontinuance of business or profession as required under section 176(3);
c) furnish in due time returns, statements or certificates, deliver declaration, allow inspection, etc., under sections 133, 134, 139(4A),139(4C), 192(2C), 197A, 203, 206,206C, 206C(1A) and 285B;
d) deduct and pay tax under section226(2)
e) file a copy of the prescribed statement within the time specified in section 200(3) or the proviso to section 206C(3) (up to 1-7-2012)
f) file the prescribed statement within the time specified in section206A(1)
272A(2)
Rs. 10,000 for each failure/default
(Subject to certain conditions)
12.
Penalty for failure to comply with section 133B
272AA(1)
Not exceeding Rs. 1,000
13.
Penalty for failure to comply with provisions of section 139A/139A(5)(c)/(5A)/(5C)
272B
Rs. 10,000
14.
Penalty for failure to comply with section 203A
272BB(1)
Rs. 10,000 for each failure/default
15.
Penalty for quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2)
272BB(1A)
Rs. 10,000
16.
Income-tax officer can impose penalty only with the prior approval of Joint Commissioner
274
If amount of penalty exceeds Rs. 10,000
17.
Assistant Commissioner or Deputy Commissioner can impose penalty only with the prior approval of Joint Commissioner
274
If amount of penalty exceeds Rs. 20,000
18.
Commissioner or Principal Commissioner can reduce or waive penalty only with the previous approval of Principal Chief Commissioner or Chief Commissioner or Principal Director-General or Director-General
273A
If amount of penalty exceeds Rs. 1,00,000
L.
Prosecution
1.
Prosecution of 6 months to 7 years with fine for willful attempt to evade tax, penalty or interest
276C(1)
If tax sought to be evaded exceeds Rs. 25 Lakhs
2.
Prosecution of 6 months to 7 years with fine for willful failure to furnish return of income under section 139(1) or in response to notice under section 142(1)(i) or section 148 or section 153A
276CC
If tax sought to be evaded exceeds Rs. 25 Lakhs
3.
Prosecution of 6 months to 7 years with fine for furnishing false statement in verification or delivery of false account, etc.
277
If tax sought to be evaded exceeds Rs. 25 Lakhs
4.
Prosecution of 6 months to 7 years with fine for abetment of false return, account, statement or declaration relating to any income chargeable to tax
278
If tax sought to be evaded exceeds Rs. 25 Lakhs
M.
Fees
1.
Fees for filing of appeal before CIT(A)
249
a) Rs.250 if total income as computed by AO is up to Rs. 1 lakh
b) Rs. 500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs
c) Rs.1,000 if total income as computed by AO is more than Rs. 2 lakhs
d) Rs.250 in any other case
2.
Fees for filing of appeal before CIT(A)
253
a) Rs.500 if total income as computed by AO is up to Rs. 1 lakh
b) Rs.1,500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs
c) 1% of assessed income subject to maximum of Rs. 10,000 if total income as computed by AO is more than Rs. 2 lakhs
d) Rs. 500 in any other case
3.
Fees for filing of application before CIT for revision of order under section 264
264
Rs.500
4.
Fees for filing application for advance ruling
245Q
Rs.10,000 on such fees as may be prescribed, whichever is higher
5.
Fees for filing application before settlement commission
Rule 44C
Rs. 500
N.
PAN
1.
Every person carrying on any business or profession to apply for PAN if total sales, turnover or gross receipts in any previous exceeds the threshold limit
139A
Rs.5,00,000
2.
Certain transaction in which quoting of PAN is mandatory.
Section 139A read with Rule 114B
a) Sale or purchase of any immovable property valued at Rs. 5 lakhs or more
b) A time deposit with a banking company exceeding Rs. 50,000
c) A deposit in any account with Post Office Saving Bank exceeding Rs. 50,000
d) A contract of a value exceeding Rs. 1 lakh for sale or purchase of securities
e) Payment to hotels and restaurants against their bills for an amount exceeding Rs. 25,000 at any one time
f) Payment in cash for purchase of bank draft or pay orders or banker’s cheque for an amount Rs. 50,000 or more during any one day
g) Deposit in cash aggregating Rs. 50,000 or more during one day with a bank
h) Payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 25,000 at any one time
i) Payment of an amount of Rs. 50,000 or more to a Mutual Fund for purchase of units or to a company for acquiring shares or debentures or bonds issued by it
j) Payment of an amount of Rs. 50,000 or more to RBI for acquiring bonds issued by it
k) Payment of an amount of Rs. 50,000 or more in a year as life insurance premium to an insurer
l) Payment to a dealer for purchase of jewellery or bullion of an amount of Rs. 5 lakh or more at any one time or against a bill for an amount of Rs. 5 lakh or more.
O.
Others Provisions
1.
Restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect
Rule 48K
If value of property exceeds:
1. Rs. 75,00,000 if immovable property is comprised within in area of Greater Bombay
2. Rs. 50,00,000 if immovable property is comprised within in area of Union territory of Delhi
3. Rs. 25,00,000 if immovable property is comprised within in area of Calcutta Metropolitan Area and Madras Metropolitan Planning Area
4. Rs. 25,00,000 if immovable property is comprised within in area of Bangalore Metropolitan Region and the areas declared as Ahmedabad Urban Development Area and the areas comprised in the city of Ahmedabad
5. Rs. 25,00,000 if immovable property is comprised within in area of Pune
6. Rs. 20,00,000 if immovable property is comprised within in areas other than those mentioned above and notified vide SO 339(E), dated 8th May, 1989; SO 53(E), dated 19th January, 1990 and SO 180(E), dated 14th March, 1991
7. Rs. 10,00,000 if the agreement for transfer is entered into, on or before the 31-07-1995
2.
No restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect
269UC
If value of property does not exceed Rs. 5,00,000
3.
Transfer of any asset except stock-in-trade, without obtaining the permission of assessing officer, in favour of any other person during the pendency of any proceeding under the act of which notice is served on the assessee to be considered as void
281
If amount of tax or other sum payable or likely to be payable exceeds Rs. 5,000 or value of asset transferred exceeds 10,000
4.
Submission of statements by producers of cinematograph films within thirty days from the end of financial year or within thirty days from the date of the completion of the production of the film, whichever is earlier
285B
Reporting of all payments made by him or due from him to each such persons as is engaged by him in such production which exceeds Rs. 50,000
5.
No statement is required to be furnished to the registrar in respect of transfer of immovable property
269P
If apparent consideration for such property doesn’t exceedRs.50,000
6.
Limit on accepting loan or deposit otherwise than by account payee cheque or account payee bank draft or electronic clearing system (Subject to certain conditions)
269SS
Rs. 20,000 in aggregate
7.
Limit on repayment of loan or deposit otherwise than by account payee cheque or account payee bank draft or electronic clearing system (Subject to certain conditions)
269T
Rs. 20,000 in aggregate
8.
Rebate to resident individual whose total income does not exceed Rs. 5,00,000
87A
Tax payable subject to maximum of Rs. 2,000
9.
Income of minor child clubbed under Section 64(1A) with parent’s income.
10(32)
Rs. 1,500 per child or Income of Minor, whichever is lower
[i] 10% of salary in case of employees otherwise 10% of gross total income
[ii] Contribution made by the Central Government or any other employer to a pension scheme under Section 80CCD(2) shall not be included in the limit of deduction of Rs. 1,50,000 provided under Section 80CCE.
