PAN now mandatory for Rs 5 lakh and above jewellery purchases

1 comments Thursday, June 30, 2011
Be ready to mandatorily flash your PAN card, for any purchase of jewellery worth Rs five lakh or more from tomorrow -- a move that would help the tax department keep an eye on such high value transactions.

As per the amendments in the income tax rules, coming into effect from July 1, quoting PAN (Permanent Account Number) will be mandatory for any payment of Rs five lakh or more for purchase of bullion or jewellery.
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Faliure to furnish form 15H by deductor within time would not attract penalty-P&H HC

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The Punjab & Haryana High Court in an important case namely Manager, Union Bank of India Ludhiana Versus Commissioner of Income Tax Ludhiana has held that faliure to submit form 15H within time by the Bank would not attract any penalty proceedings u/s 272A(2)(f) since its a default of technical nature. Relying upon  the judgment in The Commissioner of Income Tax Vs. State Bank of Patiala, [2004 -TMI - 10582 - PUNJAB AND HARYANA High Court ] wherein it had been held that unless there was a deliberate default in furnishing the certificates and if no loss of revenue had occasioned due to the said unintentional default on the part of the assessee, no penalty was exigible, the case is decided in favour of assessee by the High Court.
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Exemption u/s 54F available even against depericiable assets if period of acquisition is equivalent to long term capital asset

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Delhi High Court has held in an important case that exemption u/s 54F of Income Tax Act, 1961 will also be available against depericiable asset if it is a long term capital asset i.e if it has been acquired for more that a period of three years.
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Proposed guidelines for strike off name u/s 560 of the Companies Act, 1956 of non profit companies which have been granted license u/s 25 of Companies Act, 1956

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Ministry of Corporate Affairs has released proposed guidelines for strike off name of Companies registered u/s 25 of Companies Act, 1956 i.e Non Profit Companies, which may be implemented after recommendations from general public. It is to be noted that whereas various easy exit schemes have been provided for other defunct companies but there is no such scheme for the Non Profit Companies who have been granted licence u/s 25 of Companies Act, 1956 and who have stopped working. These proposed guidelines if implemented would help a lot such Non Profit Companies who have stopped their activities and want their name to be struck off u/s 560 of Companies Act, 1956.
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Scrutiny on the basis of AIR should be limited to AIR transactions only

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F.No.225/26/2006-ITA.II (Pt.)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, dated the 8th September, 2010
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HUF is relative for the purpose of gift exemption u/s 56(2)(v) of Income Tax Act, 1961

0 comments Wednesday, June 29, 2011
The Rajkot ITAT has held in an important case namely Vineetkumar Raghavjibhai Bhalodia vs. ITO that HUF is included in the list of relative and gift from HUF will be exempt as HUF is also a group of relatives. This is very important decision in my view as per this order if a person recieves gift from his HUF then such gift will be termed as gift from relative and no tax implications would arise.
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Madras HC stayed collection as well as registration under service tax on lawyers

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After the stay of service tax on lawyers by Delhi, Gauahati and AP High Courts,  Madras High Court has also stayed the levy of service tax on Lawyers. Madras High Court has not only interimly stayed levy and collection of service tax on lawyers but also has restrained the service tax department from compelling the lawyers to get registered under the Service Tax Law.
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Download new VAT Return Forms efiling excel utility software under Punjab VAT Act, 2005

2 comments Tuesday, June 28, 2011
Punjab Government Excise and Taxation Department has finaly released excel based e-filing software utility for  e-filing of VAT Return Forms. It is to be noted that VAT 23 and VAT 24 return forms which relates to details of sales and purchase within the state, were changed recently. New VAT 23 and 24 return forms contains information related to the details of commodity vise sales and purchase. List of commodities which have to be mentioned in the return forms VAT 23 and 24, has also been provided.
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Point of taxation rules amended to allow consulting engineers to pay service tax on receipt basis

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The Point of Taxation rules, 2011 has been amended expanding the scope of services which are allowed to pay service tax on reciept basis, to the consulting engineers services. 

In the rule 7(c) of the said rules clause (g) has also been added which relates to the  "taxable services provided or to be provided  to any person, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering including the discipline of computer hardware engineering."
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Corporates and banks mandated to issue Form 16A downloaded from TIN central system

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GOVERNMENT OF INDIA
INCOME TAX DEPARTMENT,
MINISTRY OF FINANCE
 
Form 16A – Deductee – Taxpayer
 
 
It is mandatory* for corporates and banks to issue TDS certificate in Form 16A as generated from Tax Information  Network of Income Tax Deptt. Please Insist on Form 16A (quarterly TDS certificate) that has been downloaded from TIN  Central  System  only.
 
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Illustration regarding payment of surcharge in challan form VAT-2B.

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In view of notification dated 20-6-2011, calculation of amount for Challan-2, 2A and 2B is as follows :-

Suppose sale is Rs. 1 lakh 

Tax @ 5% = 5000 

additional tax @ 10% of tax = Rs. 500
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Punjab Govt decided not to levy VAT on increased prices of Diesel and LPG-A minor relief

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The Punjab government today decided to provide much needed relief to the people of the state by not charging Value Added Tax (VAT) on the recently increased amount of diesel and LPG. 

With the exemption of VAT on the recently increased amount, diesel would become cheaper by approximately 25 paise per litre and LPG by Rs.2.50 per cylinder. To offset the price hike, the state government had given these concessions from its own resources benefiting the farmers, transporters and general consumers. With these concessions, the state government would lose about Rs 75 crore of revenue per annum.
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No Reopening of assessment on ground of wrong claim, if there is no faliure on the part of assessee-Bombay High Court

0 comments Monday, June 27, 2011
Bombay High Court in an important case namely Titanor Components LTD V ACIT  has held that reopening of assessment u/s 147/148 cannot be allowed merely because the assessee has made wrong claim of deduction in the return of income, if there was no faliure on the part of the assessee and no reason to this effect is recorded by the AO in the original assessment order. I have found this judgement as an important one in the context of reopening of assessment under Income Tax Act, hence sharing it herebelow
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Clarification on levy of excise duty on branded readymade garments

0 comments Sunday, June 26, 2011
In the budget of 2011-12 Branded Readymade garments were brought under the Central Excise. CBEC has given a clarification in regard to issues pertaining to the levy of excise duty on branded readymade garments and made-up articles of textiles.


The Board has clarified that levy of excise duty on school uniforms, uniforms for private security guards, companies, hotels, airlines etc and made-ups such as linens, towels etc bearing the name or logo of a hotel, restaurant or airlines etc would not be treated as “branded” products merely because the name of the school, institution or company or, their logo or the name of a hotel, restaurant or airlines is either printed, embroidered or etched on them
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Deductions relating to Housing loan under Income Tax Act, 1961

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Housing loan can save your income tax. EMI we pay for housing loan includes two things principal amount and interest amount. Principal amount is deductible u/s 80C and interest paid on housing loan is deductible u/s 24 of Income Tax Act, 1961.

Here below provisions of Income Tax Act relating to tax planning with housing loan are discussed.

Deduction of Interest amount on housing loan: Section 24 of Income Tax Act provides for deduction of interest paid on borrowed capital taken for acquiring, constructing, repairing, renewing or reconstruction of a house property from the Net Annual Value of a House Property. The amount of interest payable on such borrowed capital is allowable as deduction on accrual basis.

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Residential flats has to be considered as residential house for the purpose of exemption u/s 54 of Income Tax Act, 1961

2 comments Saturday, June 25, 2011
Karnataka High Court has held in an important case namely CIT V Smt. K.G Rukminiamma that residential flats constitute "a residential house" for the purpose of section 54, where Profit on sale of property was used for residence it was held that four residential flats cannot be construed as four residential houses for the purpose of section 54, when all were situated in the same building. It has to be construed only as "a residential house" and the assessee is entitled to the benefit accordingly

The Full Judgement is provided herebelow:

[2011] 331 ITR 0211

Commissioner of Income-tax Versus Smt. K. G. Rukminiamma(Karnataka High Court)

Dated - August 27, 2010


KUMAR N., JAGANNATHAN V. JJ

JUDGMENT

N. Kumar J.-

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Income Tax Returns can now be filed on Mobile Phone

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I have found the following news very intersting so sharing it herebelow:

Online income tax return filing company TaxSpanner today announced launch of mobile version of its solution that would enable users to file income tax returns (ITR) from their handset.

“After introducing the eFile by eMail option where customers need to just send us an email with a few details, e-filing of taxes through mobile is the next obvious step for the company,” Ankur Sharma, CEO, TaxSpanner said in a statement.
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Salaried Taxpayers with total Income up to Rs. 5 lakh Exempted from filing Income Tax Return for Assessment Year 2011-12-Notification issued

0 comments Thursday, June 23, 2011
Press Information Bureau
Government of India
Ministry of Finance
23-June-2011 16:54 IST
Salaried Taxpayers with total Income up to Rs. 5 lakh Exempted from filing Income Tax Return for Assessment Year 2011-12

The Central Board of Direct Taxes has notified the scheme exempting salaried taxpayers with total income up to Rs. 5 lakh from filing income tax return for assessment year 2011-12, which will be due on July 31, 2011.

Individuals having total income up to Rs. 5,00,000 for FY 2010-11, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account up to Rs. 10,000 are not required to file their income tax return.
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Cost Inflation Index for financial year 2011-12 notified

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The Government of India has notified Cost Inflation Index for the financial year 2011-12 as "785". It is to be noted that cost inflation index is used for calculating indexed cost in case of Long Term Capital Gains under Income Tax Act, 1961. The relevant notification is produced herebelow:  


NOTIFICATION NO. 35/2011
DATED 23-6-2011
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Sports goods may be made tax free in Punjab- benefits and drawbacks which may arise out of it

0 comments Wednesday, June 22, 2011
There is a news that Punjab Govt is considering to make sports goods tax free under the Punjab VAT Act 2005. It may be a relief for the sports industry which is currently facing lot of competition from the sports industry in UP and also in the international market.

But making sports goods tax free would result in that the tax paid on the purchase of raw material by the manufacturers will be lost and no input tax credit of such tax paid will be available, since as per section 13 of Punjab VAT Act, ITC of tax paid on purchase of any goods is not available, if tax free goods are manufactured out of it.

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Punjab may impose VAT on pre-owned car dealers-News

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The Punjab government has proposed value added tax (VAT) on pre-owned car dealers, making second hand cars costlier, and it is likely to be approved by the Cabinet at its meeting on Wednesday. 

Sources said it has been proposed by the state excise and taxation department to levy VAT on vehicles which are bought from the pre-owned car dealerships in the state and is on the agenda of Wednesday’s cabinet meet.

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Taxpayers can also Verify their form 16A online

0 comments Tuesday, June 21, 2011
A taxpayer who has been issued form 16A by his deductor can verify such form online to check whether it is correct as per the TDS return of the deductor or not. This facility is provided by NSDL at their website tin.nsdl.com. No registration at the NSDL is required to check form 16A online. You will be required to fill the folowing details to verify form 16A.

1. TAN of the Deductor

2. PAN of the Deductee

3. Certificate Number

4. Total Amount Deducted
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Rule 37 of Punjab VAT rules amended-mode of payment of surcharge/additional tax changed-New form VAT-2B notified

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A new VAT form namely VAT-2B for payment of surcharge has been introduced under the Punjab VAT Rules and the mode of payment of surcharge/additional tax @ 10% levied u/s 8-B of Punjab VAT Act, has been changed.

Rule 37 of Punjab VAT Rules has been amended to add a new sub-rule 2-A in the said rule, which provides that surcharge or additional tax which is levied @ 10% u/s 8-B of Punjab VAT Act will now be deposited in the ratio of eighty percent in the challan form VAT-2 and  twenty percent in the challan form VAT-2B.

It is to be noted that uptill now surcharge/additional tax was deposited one hundred percent in form VAT 2. The rest of normal vat tax is deposited in the ratio of 90% in form VAT 2 and 10% in form VAT 2A and there has been no change in the mode of payment of such normal vat tax.
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Kerala High Court interimly stayed recovery of service tax on Restaurant and short term accomodation service

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Kerala High Court has granted an interim stay  against any coercive steps of recovery of service tax or against any proceedings for imposing penalty for a period of two months on Restaurant  and short term accommodation service. 

The full order is as follows

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Present:
THE HONBLE MR.JUSTICE C.K.ABDUL REHIM
Thursday the 16th day of June 2011/26TH JYAISHTA 1933 WP(C).No.14045/2011 (E)
PETITIONERS/
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No Income tax on income received on behalf of funds established for annual medical check ups

0 comments Monday, June 20, 2011
CBDT has issued a notification giving relief to the salaried class person by exempting the funds withdrawn from the welfare funds established for the purpose of  meeting the cost of annual medical tests or medical checkups of the member, his spouse and dependent children.

Section 23AAA of Income Tax Act exempts income received by any person on behalf of fund esteblished for such purposes notified by the Board in the Official Gazette for the welfare of employees or their dependents subject to fulfillment of certain conditions. The following purposes were notified by CBDT vide notification No.[S.O.672(E) (F. No. 142/16/95-TPL)], DATED 27-7-1995:
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Deduction u/s 80GG of Income Tax Act, 1961

0 comments Sunday, June 19, 2011
If you are living in a rented house, the rent paid may help you save your income tax. Section 8GG of Income Tax Act provides deduction for House rent paid from the Gross Total Income subject to certain conditions. Section 80GG was omitted by the Finance Act 1997 w.e.f 1998-99, but it was restored again by Finance (No 2) Act, 1998 with retrospective effect i.e A.Y 1998-99.

Herebelow some important points relating to deduction under section 80GG are provided.

Quantum of deduction: The deduction u/s 80GG shall be available as minimum of the following amounts:

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No reversal of ITC on evaporation of Petroleum Products by Petroleum dealers-PVAT Tribunal

1 comments
There has been a lot of dispute on the issue whether the Petroleum products dealers should reverse the Input Tax Credit on the evaporation of petrol, diesel and other petroleum products as Rule 21(1) of Punjab VAT Rules, 2005 provides for disallowance of Input tax credit for tax paid on purchase of those goods which have been lost or damaged or destroyed beyond repair because of any theft, fire or natural clamity (please note the words because of any theft, fire or natural clamity have been removed from Rule 21(1) w.e.f 06-11-2008)
 
The Punjab & Haryana High Court in Bharat Petroleum Corporation Limited Vs. State of Punjab [(2009) 12 STM 463 (HC-P&H)] decided the above issue on merits in favour of the revenue and also at the same time dismissed the petition stating that the petitioner has the alternative statutory remedy of filing the appeal before lower appellate authorities.
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NO TDS u/s 194C onseperate contract of supply of material- Bangalore ITAT

1 comments
ITAT at Bangalore has held in an important case namely  M/s Karnataka Power Transmission Corporation Ltd.,  vs The Income-tax Officer that where a person has entered into seperate contracts of supply of material and contract of labour then TDS u/s 194C will be deducted on the Contract of labour only since both are seperate contracts and are divisible. No TDS  is liable to be decuted on the contract of supply of goods, hence the assessee cannot be treated as assessee in default.
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Presumptive income scheme u/s 44AD of Income Tax Act,1961- An analysis

1 comments Friday, June 17, 2011
Section 44AD of Income Tax Act, 1961 which provided for presumptive income scheme for civil contractors has been substituted w.e.f 01-04-2011 and the new substituted section provides presumptive income schemes applicable to all eligible assesses carrying on eligible business. Here below the provisions of new section 44AD have been examined.

To whom the provisions of section 44AD is applicable: The provisions of section 44AD are applicable to an eligible assessee carrying on eligible business. Section 44AD is not applicable to the professionals i.e Doctors, Lawyers, engineers or architects, accountants etc.

Eligible assessee means a resident individual, HUF or a partnership firm but not limited liability partnership and who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of chapter VIA under the heading “C.—Deductions in respect of certain incomes(i.e deduction under any provisions of section 80HH to 80RRB) in the relevant assessment year.
 
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Lawyers can practice in all courts,tribunals through out India w.e.f 15-06-2011-Notification issued

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From Wednesday(June 15, 2011), lawyers will be able to practise in courts across the country irrespective of their enrollment in any bar council without the need to transfer licence to their desired states.

The Centre has notified Section 30 of the Advocates Act of 1961. Though 50 years have passed since the Act was enacted, the section was brought to force only on June 9.

According to a Law Ministry notification, Section 30 of the Act will come into force on June 15.
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Exemption on Transport of goods by rail service (Abatement provisions) extended till 1-1-2012

0 comments Thursday, June 16, 2011

 
Notification No.40/2011-Service Tax
New Delhi, 14th June, 2011
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in  the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.09/2010-Service Tax, dated the 27th February, 2010, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section(i), vide number G.S.R. 153 (E), dated the 27th February, 2010, namely:-
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Intention to evade tax must be proved before leving any penalty u/s 51 of Punjab VAT Act, 2005

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I was once again to an ICC barrier today for a case regarding section 51 of Punjab VAT Act, 2005. This inspires me again to share some views on  levy of penalty u/s 51. I am re-sharing my earlier article on section 51 herebelow for the readers of my blog who might not have read it, this article was also published in Punjab & Haryana Taxes Law journal.


Section 51 of Punjab VAT Act 2005
 
Under section 51 of PVAT Act 2005 information collection centres have been esteblished by the Punjab Government at various places with a view to prevent and check the evasion and avoidance of tax under PVAT Act. Section 51(1) of PVAT Act authorizes the state government to esteblish such information collection centre or check posts by notification.
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Intimation u/s 143(1)(a) cannot be issued after notice u/s 143(2) is issued- Intimation u/s 143(1)(a) is not appealable-Mumbai ITAT

0 comments Wednesday, June 15, 2011

ITAT mumbai has held in an important case namely  DCIT Versus Housing Development Finance Corporation Ltd. that if the intimation u/s 143(1)(a) has been issued after the issue of notice u/s 143(2) of Income Tax Act then intimation issued u/s 143(1)(a) will be illegal, relying upon the Judgement of Supreme Court in  CIT v. Gujarat Electricity Board, 260 ITR 84 (SC) and further also held that no appeal will lie against intimation issued u/s 143(1)(a) after the amendment of 01/06/1999. The right cource is to file a ractification application u/s 154 of Income Tax Act.


Facts: The assessee is a company. It filed a return of income for assessment year 2006-07 on20/10/2006 declaring an income of Rs. 8,06,501,48,149. A notice under section 143(2) of the income-tax Act, 1961 (the Act) dated10/9/2007 was issued by the AO and served on the assessee on September, 2007. This is a notice for making a regular assessment u/s. 143(3) of the Act. The AO issued an intimation under section 143(1) of the Act, dated23/11/2007. This was later served on the assessee, only on5/2/2008. As against the above returned income of Rs. 8,06,01,48,145 a sum of Rs. 8,64,11,91,630 was shown as assessed income in the intimation under section 143(1) of the Act, without giving any basis for the same. A consequential interest of Rs. 99,39,417 under section 234C of the Act was also charged, without providing any basis for the levy of the same. As a result of the change in returned income and assessed income, the refund claimed by the Assessee was also allowed at a lesser figure than what was claimed by the Assessee.


Aggrieved by the aforesaid intimation under section 143(1) dated 23/11/2007 the assessee preferred appeal before CIT(A). The main contention of the assessee before CIT(A) was that pursuant to the return of income filed by the assessee on 20/10/2006 a notice under section 143(2) of the Act, dated 10/9/2007 was issued and served on the assessee an 14/9/2007 for making a regular assessment under section 143(3) of the Act. According to the assessee the intimation under section 143(1) dated 31/11/2007 could not have been issued by the Assessing Officer because a notice under section 143(2) has already been issued prior to the issue of intimation under section 143(1) of the Act. The assessee relied on the decision of the Hon’ble Supreme Court in the case of CIT v. Gujarat Electricity Board, 260 ITR 84 (SC) and Gujarat Poly-AVX Electronics Ltd. v. DCIT, 222 ITR 140 (Guj.), wherein it was held that it would not open to the revenue to issue an intimation under section 143(1)(a) of the Act after notice for regular assessment issued under section 143(2) of the Act. The CIT(A) accepting the plea of the assessee cancelled intimation u/s. 143(1) of the Act as illegal.
 
 Held:  In CIT v. Gujarat Electricity Board [2003] 260 ITR 84, the Supreme Court held that it was not open to the Revenue to issue intimation under section 143(1)(a) after notice for regular assessment is issued under section 143(2). Their Lordships said :




“The provisions of section 143(1)(a)(i) indicate that the intimation sent under section 143(1)(a) shall be without prejudice to the provisions of sub-section (2). The Legislature, therefore, intended that, where the summary procedure under sub-section (1) has been adopted there should be scope for the Revenue, either suo motu or at the instance of the assessee, to make a regular assessment under sub-section (2) of section 143. The converse is not available ; a regular assessment having been commenced under section section 143 (2), there is no need for summary proceedings under section 143(1)(a)”.


 As rightly contended on behalf of the Revenue, the aforesaid decision of the Hon’ble Supreme Court was rendered in the context of the law as it stood prior to1/6/1999. The law laid down in the said decision will apply to the present assessment year also and to this extent we agree with the submissions of the ld. Counsel for the assessee. Since the appeal before the CIT(A) was not maintainable this decision could not have been relied upon by the CIT(A). The assessee is at liberty to seek appropriate remedy in accordance with law. In the given facts and circumstances of the case we are of the view that the appeal before CIT(A) by the assessee was not maintainable and the objection of the revenue in this regard found to be justified. In our view the grounds raised by the revenue are broad enough to cover even the objection regarding maintainability of the appeal by the assessee before the CIT(A). The ld. D.R in the course of his arguments submitted that if the assessee is aggrieved by the intimation under section 143(1) of the Act he would have field an application under section 154 of the Act and thereafter would have carried the matter further in appeal. We find that the period of four years for passing an order under section 154 of the Act from the end of the Financial Year in which the order sought to be amended was passed was still available. It is for the assessee to work out its rights in accordance with law. We, therefore, uphold the plea of ld. D.R and hold that the appeal before the CIT(A) was not maintainable. With the aforesaid observations we allow this appeal by the revenue.


 In the result, the appeal of the revenue is allowed.




Full Judgement can be downloaded herebelow:

DCIT Versus Housing Development Finance Corporation Ltd.

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When assessment under Punjab VAT Act gets time barred.-Time limit for assessments

0 comments Tuesday, June 14, 2011
Assessments under Punjab VAT Act 2005 are framed u/s 29 of the Act. But there is time limit for completing the assessement under PVAT Act, after which no assessment can be framed. Here below I am attending the issue of time limit prescribed under section 29 of Punjab VAT Act, 2005 for framing assessment.

Assessment u/s 29(2) and 29(3) can be framed within three years: Section 29(4) of Punjab VAT Act provides that an assessement u/s 29(2),29(3) may be made within a period of three years after the date when annual statement was filed or due to be filed whichever is later.
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Exemption on Interest from Post office saving bank account restricted to Rs. 3500

0 comments Sunday, June 12, 2011
Exemption available on Interest from Post office Savings account has been restricted to Rs 3500 in case of Individual and Rs 7000 in case of Joint account holder. Earlier interest from post office savings account was fully exempt. 

Thus it means that after this notification interest from Post office saving account will be exempted to the extent of Rs. 3500 in case of Individual account holders and Rs 7000 in case of Joint account holders.

For example if interest of an individual from P.O S/a is Rs 4000 then only 500 will be taxable out of it and 3500 will be treated as exempted u/s 10(15)(i).
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Plumber gets notice of Rs. 6.5 crore from Income Tax-Dont let others use your bank accounts, think twice before signing any document

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 Do you think twice before submitting your identity proof documents to your employers? Or carefully read all documents your employer makes you sign? If not, Shivnath Patel's story is sure to send shivers down your spine.


Patel, a plumber, received an Income Tax notice to explain a Rs six crore transaction from his bank account to purchase 69,000 shares of Alps BPO Services in 2002-03. Patel initially thought the notices were sent to him by mistake and returned them twice. He took it seriously only in December last year when he got a call from the I-T department. Officials questioned him about the financial transactions he had made as director of a realty firm.


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In works contracts, between contractor and sub-contractors only one is liable to pay tax

0 comments Saturday, June 11, 2011
 
When works contract is sub-contracted there is only one taxable event and between main contractors and sub-contractor only one is liable to pay tax on the goods incorporated in the works contract. Herebelow this issue is discussed in the light of decision of Supreme Court and P&H High Court in the context of VAT provisions especially under Punjab VAT Act, 2005. 

Definition of works contract:  As per Section 2 (za) of Punjab Value Added Tax Act  “works contract” includes any agreement for carrying out, for cash, deferred payment or other valuable consideration, building ,construction, manufacturing, processing, fabrication, erection, installation, fitting out, improvement, modification, repairs or commissioning of any movable or immovable property
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ITAT imposed costs on revenue for causing harrasment to assessee in recovery proceedings

0 comments Friday, June 10, 2011
 The Pune ITAT has imposed costs on the revenue for causing harrasment to the assessee in recovery proceedings in a case namely Shramjivi Nagari Sahakari Pat Sanstha V ACIT. The bank account of assessee was attached even before the communication of CIT(A)'s order to the assessee. This is an important order as it is generaly seen that the department ussualy adopt coercive measures for recovery proceedings, I hope the department take some lesson from this order.
Facts: The assessee, a credit co-operative society, contravened s. 269SS & 269T because of which penalty u/s 271E was levied. The CIT(A) confirmed the levy of penalty. Before service of the CIT(A)’s order, the assessee’s bank account was attached u/s 226(3). The assessee filed a stay application and claimed that as the assessee had to bear costs owing to the illegal action of the AO, costs had to be awarded to it. HELD upholding the assessee’s plea:

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AO is not suo moto bound to supply reasons for reassessment under Income Tax Act -Delhi HC

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The Delhi High Court in an important case namely CIT V Safetag International India Pvt Ltd. has held that in case of reassessment proceedings u/s 147 of Income Tax Act if the assessee doesnot demand reasons recorded by AO for reopening of case then AO is not bound to supply the same suo moto to the assessee. 

 
Brief Facts: The assessee’s assessment was reopened u/s 147. The assessee did not ask for the recorded reasons. Even before the CIT(A), though the assessee challenged the reopening as being without jurisdiction, it did not ask for the reasons. Before the Tribunal, the assessee claimed that it was not aware that it could demand the reasons and object thereto. Pursuant thereto the Tribunal remitted the case to the AO with direction that the reasons & opportunity to object be provided and denovo assessment be framed if objections were rejected. On appeal by the department, the appeal was allowed:

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Lawyers will be able to practice in all courts through out India soon-Veerappa Moily

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Indian lawyers will be able to practice in all courts and tribunals across India irrespective of which bar council they are enrolled in, after law minister Veerappa Moily said he would notify long-pending section 30 of the Advocates Act 1961. The notification is expected to be issued either on 7th or 8th June.

Section 30 of the Act states:

Subject to provisions of this Act, every advocate whose name is entered in the State roll shall be entitled as of right to practice throughout the territories to which this Act extends,-
(i) in all courts including the Supreme Court;
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PUNJAB SMALL TRADERS BOARD SEEKS EXEMPTION IN VAT REGISTRATION LIMIT UPTO Rs 10 LAC

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 The Punjab Small Traders Board today sought Rs 10 lac Value Added Tax (VAT) exemption for both manufacturers and retailers under Punjab VAT Act. 

          Holding a meeting with Financial Commissioner S. S. Brar and Excise and Taxation Commissioner Mr A. Venu Prasad, delegation of Small Traders Board, Punjab led by Chairman Baba Ajit Singh raised the issue of exemption up to Rs 10 lac on VAT Registration for both manufacturers and retailers. 
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Lumsum payment of tax schemes under Punjab VAT Act 2005

0 comments Thursday, June 9, 2011
Section 8-A of Punjab VAT Act 2005 provides for lump sum schemes for such goods or class of goods or such persons subject to such conditions as may be prescribed by State Government. The provisions of section 8-A are applicable irrespective of anything contained contrary in the other Provisions of Punjab VAT Act.

As a result the Punjab Government has uptill now provided lump sum schemes for Dhaba Owners and for Brick Klin owners. But it is to be noted that these lump sum schemes are optional only. A dealer may or may not choose to pay under lump sum schemes.

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Search and Seizure operations should not violate one's basic Human Rights-Bihar Human Rights Commission

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The Bihar Human Rights Commission took on the Income Tax Department for violating Human Rights of an asseessee while conducting search and seizure operation. The commission asked the Department to carry on  serach & seizure operations without violating one's basic Human Rights.

In this case the income-tax department conducted search and seizure operations u/s 132 at the premises of the assessee when interrogation & recording of statement was conducted for more than 30 hours and till the odd hours of the night without any break or interval. The assessee filed a complaint alleging violation of human rights. The commission upheld the plea as under:

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Reassessment proceedings cannot be initiated merely on basis of internal audit report objections

0 comments Tuesday, June 7, 2011
Delhi High Court in an important case namely CIT V. Simbhaoli Sugar Mills Ltd. has held that reassessment proceedings u/s 147 cannot be initiated merely  on the basis of  internal audit report objections when no new fact has come to light. This is very important decision as many a times the objections are raised by internal audit department on the Assessment orders.

The implication of this judgement would be that if a case is reopened for reassessment u/s 147 merely on the basis of internal audit report objections, when the assessee has made full disclosure of information in the original assessment proceedings and no new material has come to light then such reopening of case will be a mere change of opinion, for which action u/s 147/148 is not allowed.

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General circular on Guidelines for Fast Track Exit mode for defunct companies u/s 560 of Companies Act, 1956

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Ministry of corporate affairs, Government of India has issued a general circular  providing  Guidelines for Fast Track Exit mode for defunct companies under section 560 of the Companies Act, 1956. As per Section 560 of Companies Act, 1956 the Registrar of companies can strike off the name of the defunct companies from the register of companies subject to fullfilment of certain conditions. 

To get a company wound up may prove to be a costly and time consuming affair for small companies who has already stopped their business and have nil assets and liabilities. This Fast Track Exit scheme will help certainly help defunct companies especialy the small defunct companies to exit u/s 560 of companies Act.  The fees to be deposited under this scheme is Rs 5000. The circular is produced herebelow:

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Mandatory uploading of intra-state transactions in Punjab is suspended-It will now be optional only

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Uploading of intra-state transactions (i.e transactions within the state) on the website of Excise and Taxation Department, Punjab, which was made compulsory by Punjab Government w.e.f 01-06-2011 has been suspended.(See earlier issued public notice).

A Public notice to this effect has been issued by the Government today, making it clear that uploading of information of intra-state transaction will not be mandatory rather it will be directory and optional only.

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Rates of TDS for the Financial Year 2010-2011

0 comments Monday, June 6, 2011


Section
Particulars
TDS
Threshold Limit
Surcharge and Education Cess
192
Salary
Normal Rate
As per normal computation of income
1.      Surcharge:
No Surcharge on TDS in case of payment is made to Resident or Domestic Company
No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company
2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.
2.      Education Cess
No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]
3% EC and SHEC (2% + 1%) on TDS in case of Salary
3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident
193
Interest on Specified Securities
10%
Rs. 2,500 in case of Listed Debentures
Rs. 10,000 in case of 8% Savings (Taxable) Bonds, 2003,
Rs. 10,000 in case of 6½ per cent Gold Bonds, 1977, or 7 per cent Gold Bonds, 1980, where the Bonds are held by an individual not being a non-resident, and the holder thereof makes a declaration in writing before the person responsible for paying the interest that the total nominal value of the 6½ per cent Gold Bonds, 1977, or, as the case may be, the 7 per cent Gold Bonds, 1980
No TDS on certain specified securities
193
Interest other Securities
10%
194
Dividend       (Deemed)
10%
Rs. 2,500
194
Dividend (Other)
Nil

194A
Interest other than interest on security
10%
(a) Rs. 10,000/- where the payer is a banking company
(b) Rs. 10,000/- where the payer is a co-operative society engaged in carrying on the business of banking;
(c) Rs. 10,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and
(d) Rs. 5,000/- in any other case
194B
Winning from Lotteries
30%
Rs. 5,000 - upto 30.6.2010
Rs. 10,000 - w.e.f. 1.7.2010
194BB
Winning for horse race
30%
Rs. 2,500- upto 30.6.2010
Rs. 5,000 - w.e.f. 1.7.2010
194C
Payment to Individuals and HUF
1%
Rs. 20,000 per single contract or Rs. 50,000 in aggregate during the Finance Year - upto 30.6.2010
Rs. 30,000 per single contract or Rs. 75,000 in aggregate during the Finance Year - w.e.f. 1.7.2010
No TDS on GTA if PAN number of the GTA is available
194C
Payment to other contractors
2%
Rs. 20,000 per single contract or Rs. 50,000 in aggregate during the Finance Year - upto 30.6.2010
Rs. 30,000 per single contract or Rs. 75,000 in aggregate during the Finance Year - w.e.f. 1.7.2010
No TDS on GTA if PAN number of the GTA is available
194D
Insurance Commission
10%
Rs. 5,000- upto 30.6.2010
Rs. 20,000 - w.e.f. 1.7.2010
194E
Payment to a non-resident sportsman or association
10%
-
194EE
Payment for National Saving Scheme, 1987
20%
-
194F
Payment for repurchase of units
20%
-
194G
Commission on sale of lottery ticket
10%
Rs. 1,000
194H
Commission or Brokerage
10%
Rs. 2,500- upto 30.6.2010
Rs. 5,000 - w.e.f. 1.7.2010
194I
Rent on land, building or furniture
10%
Rs. 1,20,000- upto 30.6.2010
Rs. 1,80,000 - w.e.f. 1.7.2010
194I
Rent on plant, machinery or equipment
2%
Rs. 1,20,000- upto 30.6.2010
Rs. 1,80,000 - w.e.f. 1.7.2010
194J
Fees for Professional/Technical services
10%
Rs. 20,000- upto 30.6.2010
Rs. 30,000 - w.e.f. 1.7.2010
194LA
Compensation to a resident on acquisition of certain immovable property
10%
Rs. 1,00,000

1.    Self Declaration - Tax (TDS) is not deductible under section 193, 194, 194A, 194EE or 194K if the recipient makes a declaration in Form 15G / 15H under the provisions of section 197A. But, the person seeking to furnish Form 15G / 15H must have PAN number on or after 1.4.2010
2.   Certificate from AO - Under Section 197 - A person can apply to AO and seek a certificate in Form 13 for no deduction of TDS or deduction of TDS at lower rates under sections192, 193, 194, 194A, 194C, 194D, 194G, 194H[, 194-I, 194J, 194K, 194LA and 195.
2. In case PAN of the deductee is not available than TDS rate will be 20%

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Income Tax Rates for Individuals, HUF

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Rates of Income Tax as applicable to Individuals, Hindu Undivided Families (HUF) and Artificial Jurisdictional Person:

Rates For the Assessment Year 2011-2012

Net Income Range Income Tax Rates Tax
Upto Rs. 1,60,000 Nil Nil
Rs. 1,60,000 - Rs. 5,00,000 10% 10% of total income minus Rs. 1,60,000 See Notes
Rs. 5,00,000 - Rs. 8,00,000 20% Rs. 34,000 + 20% of total income minus Rs. 5,00,000 --do--
Above 8,00,000 30% Rs. 94,000 + 30% of total income minus Rs. 8,00,000 --do--
Special Rates for Resident Women (who is below 65 years at any time during the previous year)
Net Income Range Income Tax Rates Tax
Upto Rs. 1,90,000 Nil Nil
Rs. 1,90,000 - Rs. 5,00,000 10% 10% of total income minus Rs. 1,90,000 See Notes
Rs. 5,00,000 - Rs. 8,00,000 20% Rs. 31,000 + 20% of total income minus Rs. 5,00,000 --do--
Above 8,00,000 30% Rs. 91,000 + 30% of total income minus Rs. 8,00,000 --do--
Special Rates for Resident Senior Citizen (who is 65 years or more at any time during the previous year)
Net Income Range Income Tax Rates Tax
Upto Rs. 2,40,000 Nil Nil
Rs. 2,40,000 - Rs. 5,00,000 10% 10% of total income minus Rs. 2,40,000 See Notes
Rs. 5,00,000 - Rs. 8,00,000 20% Rs. 26,000 + 20% of total income minus Rs. 5,00,000 --do--
Above 8,00,000 30% Rs. 86,000 + 30% of total income minus Rs. 8,00,000 --do--
Notes for the Assessment Year 2011-2012
Note 1: - Add Surcharge - Nil
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax 



Rates For the Assessment Year 2010-2011

Net Income Range Income Tax Rates Tax
Upto Rs. 1,60,000 Nil Nil
Rs. 1,60,000 - Rs. 3,00,000 10% 10% of total income minus Rs. 1,60,000 See Notes
Rs. 3,00,000 - Rs. 5,00,000 20% Rs. 14,000 + 20% of total income minus Rs. 3,00,000 --do--
Above 5,00,000 30% Rs. 54,000 + 30% of total income minus Rs. 5,00,000 --do--
Special Rates for Resident Women (who is below 65 years at any time during the previous year)
Net Income Range Income Tax Rates Tax
Upto Rs. 1,90,000 Nil Nil
Rs. 1,90,000 - Rs. 3,00,000 10% 10% of total income minus Rs. 1,90,000 See Notes
Rs. 3,00,000 - Rs. 5,00,000 20% Rs. 11,000 + 20% of total income minus Rs. 3,00,000 --do--
Above 5,00,000 30% Rs. 51,000 + 30% of total income minus Rs. 5,00,000 --do--
Special Rates for Resident Senior Citizen (who is 65 years or more at any time during the previous year)
Net Income Range Income Tax Rates Tax
Upto Rs. 2,40,000 Nil Nil
Rs. 2,40,000 - Rs. 3,00,000 10% 10% of total income minus Rs. 2,40,000 See Notes
Rs. 3,00,000 - Rs. 5,00,000 20% Rs. 6,000 + 20% of total income minus Rs. 3,00,000 --do--
Above 5,00,000 30% Rs. 46,000 + 30% of total income minus Rs. 5,00,000 --do--
Notes for the Assessment Year 2010-2011
Note 1: - Add Surcharge - Nil
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (rebate u/s 88E is not deductible)
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (rebate u/s 88E is not deductible )


 Income Tax Rates for Firms

Rates for the Assessment Year 2011-2012

Rate of Tax is 30% for the Assessment Year 2010-2011
Notes for the Assessment Year 2011-2012.
Note 1: - Add Surcharge - Nil
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax
Note 3: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax

 Rates for the Assessment Year 2010-2011

Rate of Tax is 30% for the Assessment Year 2009-2010
Notes for the Assessment Year 2010-2011
Note 1: - Add Surcharge - Nil
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-2010)
Note 3: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-2010)



Income Tax Rates for Companies

Rates For the Assessment Year 2011-2012

Company Rate of Income Tax
In case of domestic company 30%
In case of foreign Company
- Royalty received from Government or an Indian Concern in pursuance of an agreement made by it with the Indian concern after March 31, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by central Government 50%
- Other Income 40%
Notes for the Assessment Year 2011-2012
Note 1: - Add Surcharge - Surcharge is 7.5% of income-tax and in case of domestic companies and 2.5% in case of foreign companies if net income exceeds Rs.1crore in either case.
Surcharge is subject to marginal Relief.
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax plus surcharge
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax plus surcharge

Minimum Alternate Tax for the Assessment Year 2011-2012
Company Rate of Minimum Alternate Tax
In case of domestic company 18% of book profit
In case of foreign Company 18% of book profit
Notes for the Assessment Year 2011-2012
Note 1: - Add Surcharge - Surcharge is 7.5% of income-tax and in case of domestic companies and 2.5% in case of foreign companies if net income exceeds Rs.1crore in either case.
Surcharge is subject to marginal Relief.
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax plus surcharge
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax plus surcharge


 Rates For the Assessment Year 2010-2011

Company Rate of Income Tax
In case of domestic company 30%
In case of foreign Company
- Royalty received from Government or an Indian Concern in pursuance of an agreement made by it with the Indian concern after March 31, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by central Government 50%
- Other Income 40%
Notes for the Assessment Year 2010-2011
Note 1: - Add Surcharge - Surcharge is 10% of income-tax (Rebate u/s 88E is not available w.e.f. AY 2009-10) and in case of domestic companies and 2.5% in case of foreign companies if net income exceeds Rs. 1 crore in either case.
Surcharge is subject to marginal Relief.
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-10) plus surcharge
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-10) plus surcharge

Minimum Alternate Tax for the Assessment Year 2010-2011
Company Rate of Minimum Alternate Tax
In case of domestic company 15% of book profit
In case of foreign Company 15% of book profit
Notes for the Assessment Year 2010-2011
Note 1: - Add Surcharge - Surcharge is 10% of income-tax (Rebate u/s 88E is not available w.e.f. AY 2009-10) and in case of domestic companies and 2.5% in case of foreign companies if net income exceeds Rs. 1 crore in either case.
Surcharge is subject to marginal Relief.
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-10) plus surcharge
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-10) plus surcharge


Income Tax Rates for Co-operative Societies

Rates For the Assessment Year 2011-2012

NetIncomeRange Rate of Tax
Up to Rs. 10,000 10%
Rs. 10,000 - Rs. 20,000 20%
Rs. 20,000 and above 30%
Notes for the Assessment Year 2010-2011
Note 1: - Add Education Cess - E. Cess is 2% of Income Tax
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax


Rates For the Assessment Year 2010-2011

Net Income Range Rate of Tax
Up to Rs. 10,000 10%
Rs. 10,000 - Rs. 20,000 20%
Rs. 20,000 and above 30%
Notes for the Assessment Year 2010-2011
Note 1: - Surcharge - Nil
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-10)
Note 2: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (Rebate u/s 88E is not available w.e.f. AY 2009-10)



Income Tax Rates for AOP, BOI


Sr. No.
Section
Income
Rate of Income Tax
1
67B(1)
Where the individual shares of the members of an association of persons or body of individuals (other than a company or a co-operative society or a society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India) in the whole or any part of the income of such association or body are indeterminate or unknown
30%
(Maximum Marginal Rate)
3
67B(1)
where the total income of any member of such association or body is chargeable to tax at a rate which is higher than the maximum marginal rate.
Such higher rate
4
67B(2)
the total income of any member for the previous year (excluding his share from such association or body) exceeds the maximum amount which is not chargeable to tax in the case of that member under the Finance Act of the relevant year.
30%
(Maximum Marginal Rate)
5
67B(2)
any member or members thereof is or are chargeable to tax at a rate or rates which is or are higher than the maximum marginal rate, tax shall be charged on that
portion or portions of the total income of the association or body which is or are relatable to the share or shares of such member or members at such higher rate or rates, as the case may be, and the balance of the total income of the association or body shall be taxed at the maximum marginal rate.
6

Any other Case
Normal Rate of Income Tax as applicable to Individual

Note: - Surcharge,  Education Cess  and Secondary and Higher Education Cess are applicable in the same manner as applicable to Individual / HUF



Income Tax Rates for Trusts

Generally Income of a Trust is taxed in the same manner as taxed in the hands of a resident Individual.

However, in certain specific cases, taxes are applicable at the following rates:


Sr. No.
Section
Income
Rate of Income Tax
1
161(1A)
Private Trust - Income includes Profit and gains from business
30% (Maximum Marginal Rate)
2
161(1)
Private Trust - Income does not include Profit and gains from business and shares are determinate or known
Rates as applicable to each beneficiary
3
164
Private Trust - Income of Private discretionary trust where shares of beneficiaries are indeterminate
30% (Maximum Marginal Rate)
4
164A
Income of a Oral Trust
30% (Maximum Marginal Rate)
5
164(2)
Public Trust – If income is not exempted u/s 11
Taxable as AOP
6
164(2)
Public Trust – If exemption is forfeited due to contravention u/s 13
30% (Maximum Marginal Rate)


Note: - Surcharge,  Education Cess  and Secondary and Higher Education Cess are applicable in the same manner as applicable to Individual / AOP as the case may be



Income Tax Rates for Some Specific Cases

For the Assessment Year 2011-2012

Sr. No. Section Income Rate of Income Tax
1 111A Short Term Capital Gain from an asset being an equity share in a company or a unit of an equity oriented fund subject to STT 10%
2 112 Long Term Capital Gain
[Other than an asset being an equity share in a company or a unit of an equity oriented fund subject to STT  - Sec. 10(38)]
20%
3 115B Profits and Gains of Life Insurance Business 12.5%
4 115BB Winning from lotteries, crossword puzzles, or race including horse race (not being income from activity of owning and maintaining race hose) or card game and other game of any sort or from gambling or betting of any form or nature 30%
5 115BBC Anonymous Donation received in excess of the higher of the following, namely:—
               (A) five per cent of the total donations received by the assessee, or
               (B) one lakh rupees;
30%
Note 1: - Add Surcharge -
Rate of Surcharge is Nil in the following cases:
a.       If the taxpayer is an Individual / HUF/ BOI/ AOP
b.      If the taxpayer is firm
c.       If the taxpayer is company (domestic or non-domestic company) and net income does not exceed Rs. 1 crore.
d.      If the taxpayer is a co-operative or local authority.
Rate of Surcharge will be 7.5% in the following cases:
a.      If the taxpayer is a domestic company and net income exceeds Rs.1crore.
b.       In case of section 115JB - MAT - if book profit exceeds Rs.1crore.
c.       In the cases attracting sections 161(1A), 164, 164A and 167B - surcharge is applicable irrespective of income.
Rate of Surcharge will be 2.5% in the following cases:
a.       If the taxpayer is non-domestic company and net income exceeds Rs.1crore.
Surcharge is subject to marginal Relief.
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (rebate u/s 88E is not deductible) plus surcharge
Note 3: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (rebate u/s 88E is not deductible ) plus surcharge

For the Assessment Year 2010-2011

Sr. No. Section Income Rate of Income Tax
1 111A Short Term Capital Gain from an asset being an equity share in a company or a unit of an equity oriented fund subject to STT 10%
2 112 Long Term Capital Gain
[Other than an asset being an equity share in a company or a unit of an equity oriented fund subject to STT  - Sec. 10(38)]
20%
3 115B Profits and Gains of Life Insurance Business 12.5%
4 115BB Winning from lotteries, crossword puzzles, or race including horse race (not being income from activity of owning and maintaining race hose) or card game and other game of any sort or from gambling or betting of any form or nature 30%
5 115BBC Anonymous Donation received in excess of the higher of the following, namely:—
               (A) five per cent of the total donations received by the assessee, or
               (B) one lakh rupees;
30%
Note 1: - Add Surcharge -
Rate of Surcharge is Nil in the following cases:
a.       If the taxpayer is an Individual / HUF/ BOI/ AOP
b.      If the taxpayer is firm
c.       If the taxpayer is company (domestic or non-domestic company) and net income does not exceed Rs. 1 crore.
d.      If the taxpayer is a co-operative or local authority.
Rate of Surcharge will be 10% in the following cases:
a.      If the taxpayer is a domestic company and net income exceeds Rs. 1 crore.
b.       In case of section 115JB - MAT - if book profit exceeds Rs. 1 crore.
c.       In the cases attracting sections 161(1A), 164, 164A and 167B - surcharge is applicable irrespective of income.
Rate of Surcharge will be 2.5% in the following cases:
a.       If the taxpayer is non-domestic company and net income exceeds Rs. 1 crore.
Surcharge is subject to marginal Relief.
Note 2: - Add Education Cess - E. Cess is 2% of Income Tax (rebate u/s 88E is not deductible) plus surcharge
Note 3: - Add Secondary and Higher Education Cess - SHE. Cess is 1% of Income Tax (rebate u/s 88E is not deductible ) plus surcharge



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