All About TAX in Financial Year 2009 - 2010
All About TAX in Financial Year 2009 - 2010
All About TAX in Financial Year 2009 - 2010
in
Financial Year
2009 – 2010
By :-
Narendra Tank
Shiv pratap singh
Harsh Lohia
Rahul purswani
Nikhilesh suwalka
Tax Slab for F.Y. 2009 - 2010
Taxable Income of Senior
Taxable Income of Men Taxable Income of Women Citizens Tax
Rs.5,00,000 and Above Rs.5,00,000 and Above Rs.5,00,000 and Above 30%
Note :
3% Education Cess also on the tax amount after tax and surcharge (if any)
What is surcharge?
* If salary is above 10 lacs , 10% surcharge will also be applicable.
Tax Free Incomes :
The following incomes are completely exempt from Income Tax
Without any upper limit.
1. Interest on PPF/ GPF / EPF.
2. Interest on GOI Tax Free Bonds.
3. Dividends on Shares and on Mutual Funds.
Dividend Income :
Dividend income from companies / equity – oriented Mutual
Funds is Completely Exempt in the hands of investors.
1. Spouse
2. Brother or Sister.
3. Brother or Sister of Spouse.
4. Brother or Sister of either of parents of the individual.
5. Any lineal ascendant or descendant of the individual.
6. Any lineal ascendant or descendant of the spouse of the
individual.
7. Spouse of the persons referred to in (2) or (6)
8. Gifts received on the occasion of marriage
9. Gift received under a WILL by way of inheritance are also tax
free.
CAPITAL AND REVENUE
1.Capital Receipts;- Receipts from fixed capital
Ex: Receipt from plant and
machinery
2.Revenue Receipts:
Receipts from circulating capital
2. Partly exempted allowance
• House rent allowance
a) Actual HRA
b) Rent Paid – 10 % of salary
c) 40 % of salary & in case of (K,C,D,M) 50 % of salary.
Taxable amount = Actual HRA – a,b,c which ever is lower
• Special allowances
a) Children education allowance
b) Children hostel allowance
c) Tribal area allowance
d) Transport allowance
e) Underground coal mines allowance
f) Allowance to transport employees
g) Highly active field area allowance
h) Island duty allowance
• Entertainment allowance
3. Fully Taxable Allowances
a) Medical allowance
b) Dearness allowance
c) Overtime allowance
d) City compensatory allowance
e) Lunch allowance
f) Project allowance
1. Provident funds
1.1 Statutory provident fund
1.2 Recognised provident fund
1.3 Unrecognised provident fund
2. Public provident fund
Approved super annuation fund
3. Perquisites
Perquisites taxable in all cases
Fully exempted perquisites
Perquisites taxable in specified cases only
4. Retirement benefits
5 Pension
6. Gratuity
7. Leave salary encashed at the time of retirement
8. Profit in lieu of salary
9. Value of accomodation
• Reliefto foreign Govt. Employees
• Relief to foreign companies
• Incomes of non-residents
• Interest on certain securities: sec-10(15)
• Share of profit from partnership firm
• Income of SAARC fund
• Capital gain on transfer of US 64 units of the
UTI
• Exemption to political parties – section
•13A
Income from House Property
(SECTION 22 TO 27)
• Annual value
• Let-out house properties
• Self- occupies house properties
• Partly let-out and partly self – occupies house properties
• Deductions under section 24
Standard deduction under section – 24 (a)
Interest on loan under section – 24 (b)
Business
According to Sec.2(13), the term ‘Business’ includes,
“any trade, commerce or manufacture or adventure in the
nature of trade, commerce or manufacture”.
Profession
According to Sec. 2(36), “ profession” includes
vocation, it is an occupation requiring purely intellectual
skill or manual skill controlled by the intellectual skill of
the operator e.g. Lawyer, Doctor, Engineer, etc.
VOCATION
•Interest on post office savings schemes like MIS, NSC, KVP etc.
•Interest on private loans given to relatives, friends or any other
entity.
•Interest on government securities.
(Note: Deduction u/s 80 L has been omitted now and accordingly
interest income from the above sources is Fully Taxable now.)
Capital Gains
Meaning
Any income derived from the transfer of capital assets is known as “Capital
gain”
Capital Asset
u/s 2(14). Capital asset means any property held by an assessee.
Transfer
u/s 2(47). Transfer means sales, Exchange, Relinquishment of an asset etc.,
SALES CONSIDERATION
(-) TRANSFER EXPENSES
(-) COST OF ACQUISITION
(-) COST OF IMPROVEMENT
= GROSS STCG
(-) EXEMPTION UNDER SECTION -54
= NET STCG
Tax Treatment on Short Term
Capital Gain
The gain resulting from the transfer of a capital asset after the expirty of 36 months
from the date of its acquisition is known as long term capital gain.
In case of LTCG if immovable property is sold / transferred after THREE years of
Acquisition.
• Similarly, if shares or other financial securities such as mutual fund units are
•sold AFTER ONE year of purchase, the profit earned is LTCG.
SALES CONSIDERATION
(-) TRANSFER EXPENSES
(-) INDEX COST OF ACQUISITION
(-) INDEX COST OF IMPROVEMENT
= GROSS LTCG
(-) EXEMPTION UNDER SECTION -54
= NET LTCG
INDEX COST OF ACQUISITION
It
is the residuary head of income. Under this head, income of every kind which is
not charged to tax under any of the other four heads are chargeable to tax.
•Examples of income from other sources
o Winning from lotteries, crossword puzzles, races
o Annuities granted under a will
o Dividends (Exempted u/s 10)
o sub letting income
o Interest on bank deposit
o Income from royalty
o Agriculture income outside India
o Income received from writing articles
o Income from undisclosed sources
o Interest received on income tax refund
o Rent from plant , furniture & machine
o Gift is more than Rs 50000
o Directors commission & fees
o Family pension
EXEMPTED INCOME FROM OTHER
SOURCES