The Budget for the year 2010-11 has been presented on 26/02/2010. The proposed important changes in Income Tax Act 1961 and rates in the finance bill 2010 are provided here below:
MALE RESIDENT INDIVIDUAL AND HINDU UNDIVIDED FAMILY (HUF)
SLAB INCOME TAX RATE
Upto Rs. 1,60,000 Nil.
Rs. 1,60,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.
No Surcharge.
FEMALE RESIDENT INDIVIDUAL
In the case of every individual, being a woman resident in India, and below the age of sixty-five years at any time during the previous year,—
SLAB INCOME TAX RATE
Upto Rs. 1,90,000 Nil.
Rs. 1,90,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.
No Surcharge.
SENIOR CITIZEN
In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year,—
SLAB INCOME TAX RATE
Upto Rs. 2,40,000 Nil.
Rs. 2,40,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.
No Surcharge.
There is no change in the rates of Income Tax for Partnership firms, Limited Companies. But Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent and Minimum alternate tax on the book profits is increased from 15% to 18%.
The Deduction u/s 80C has been increased by Rs. 20000 subject to the condition that the additional deduction of Rs 20000 shall be available if the investment is made in the Infrastructure bonds.
New Saral Form to be notified: A new Saral Form in two pages namely Saral-2 shall be notified for Individual salaried taxpayers in the coming Assessment year.
Limit U/S 44AB raised: The limit of Gross receipts u/s 44AB for audit has been increased from Rs. 40 lakhs to 60 Lakhs in case of Businesses and from Rs 10Lakhs to Rs 15 Lakhs in case of Professionals.
Limit U/S 44AD raised:Limit of turnover for the purpose of presumptive taxation of small businesses enhanced to Rs. 60 lakh. It means now a person carrying on business can declare his income @8% u/s 44AD and he will not be required to maintain any regular books of accounts.
Interest Rate on TDS not deposited raised: If tax has been deducted on payment by way of any expense and is paid before the due date of filing the return, such expenditure to be allowed for deduction. Interest charged on tax deducted but not deposited by the specified date to be increased from 12 per cent to 18 per cent per annum.
Two more Centralized Processing centers to be opened in addition to one already existing at Bengaluru.
Scope of cases which may be admitted by the Settlement Commission expanded to include proceedings related to search and seizure cases pending for assessment.
No capital Gain in case of conversion of Small companies to LLP: The conversion of small companies into Limited Liability Partnerships, transfer of assets as a result of such conversion not to be subject to capital gains tax.
Contribution made to the Central Government Health Scheme has also been made eligible for deduction u/s 80D of Income Tax Act 1961.
Limit Under Section 194C raised the limit for deduction TDS from the contractors u/s 194C(5) has been increased from Rs. 20000 to 30000 in case of single contract and from Rs 50000 to 75000 while calculating aggregate of such amount during the whole financial year under the proviso to sub section 5 of section 194C with effect from 1-07-2010.
The Limits for non deduction of TDS has been raised w.e.f 01-07-2010
- u/s 194B limit raised from Rs 5000 to 10000
-u/s 194BB from Rs 2500 to 5000
-from Insurance commission u/s 194D raised from Rs. 5000 to 20000
-from commission u/s 194H raised from Rs. 2500 to 5000
-u/s 194I in case of rent from Rs. 120000 to 180000
-u/s194J(1)(B) from Rs. 20000 to 30000
Penalty u/s 271B for failure to get accounts audited raised from Rs 1 lakh to 1.5 lakh
The new Direct Tax code is proposed to be made applicable from 01-04-2011 in the country.
MALE RESIDENT INDIVIDUAL AND HINDU UNDIVIDED FAMILY (HUF)
SLAB INCOME TAX RATE
Upto Rs. 1,60,000 Nil.
Rs. 1,60,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.
No Surcharge.
FEMALE RESIDENT INDIVIDUAL
In the case of every individual, being a woman resident in India, and below the age of sixty-five years at any time during the previous year,—
SLAB INCOME TAX RATE
Upto Rs. 1,90,000 Nil.
Rs. 1,90,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.
No Surcharge.
SENIOR CITIZEN
In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year,—
SLAB INCOME TAX RATE
Upto Rs. 2,40,000 Nil.
Rs. 2,40,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 8,00,000 20 per cent.
Above Rs. 8,00,000 30 per cent.
No Surcharge.
There is no change in the rates of Income Tax for Partnership firms, Limited Companies. But Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent and Minimum alternate tax on the book profits is increased from 15% to 18%.
The Deduction u/s 80C has been increased by Rs. 20000 subject to the condition that the additional deduction of Rs 20000 shall be available if the investment is made in the Infrastructure bonds.
New Saral Form to be notified: A new Saral Form in two pages namely Saral-2 shall be notified for Individual salaried taxpayers in the coming Assessment year.
Limit U/S 44AB raised: The limit of Gross receipts u/s 44AB for audit has been increased from Rs. 40 lakhs to 60 Lakhs in case of Businesses and from Rs 10Lakhs to Rs 15 Lakhs in case of Professionals.
Limit U/S 44AD raised:Limit of turnover for the purpose of presumptive taxation of small businesses enhanced to Rs. 60 lakh. It means now a person carrying on business can declare his income @8% u/s 44AD and he will not be required to maintain any regular books of accounts.
Interest Rate on TDS not deposited raised: If tax has been deducted on payment by way of any expense and is paid before the due date of filing the return, such expenditure to be allowed for deduction. Interest charged on tax deducted but not deposited by the specified date to be increased from 12 per cent to 18 per cent per annum.
Two more Centralized Processing centers to be opened in addition to one already existing at Bengaluru.
Scope of cases which may be admitted by the Settlement Commission expanded to include proceedings related to search and seizure cases pending for assessment.
No capital Gain in case of conversion of Small companies to LLP: The conversion of small companies into Limited Liability Partnerships, transfer of assets as a result of such conversion not to be subject to capital gains tax.
Contribution made to the Central Government Health Scheme has also been made eligible for deduction u/s 80D of Income Tax Act 1961.
Limit Under Section 194C raised the limit for deduction TDS from the contractors u/s 194C(5) has been increased from Rs. 20000 to 30000 in case of single contract and from Rs 50000 to 75000 while calculating aggregate of such amount during the whole financial year under the proviso to sub section 5 of section 194C with effect from 1-07-2010.
The Limits for non deduction of TDS has been raised w.e.f 01-07-2010
- u/s 194B limit raised from Rs 5000 to 10000
-u/s 194BB from Rs 2500 to 5000
-from Insurance commission u/s 194D raised from Rs. 5000 to 20000
-from commission u/s 194H raised from Rs. 2500 to 5000
-u/s 194I in case of rent from Rs. 120000 to 180000
-u/s194J(1)(B) from Rs. 20000 to 30000
Penalty u/s 271B for failure to get accounts audited raised from Rs 1 lakh to 1.5 lakh
The new Direct Tax code is proposed to be made applicable from 01-04-2011 in the country.
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