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Amendments in I.T. Act for A.Y. 2011-12 and Changes in ITR Forms.

Amendments in I.T. Act for A.Y. 2011-12 and Changes in ITR Forms. JAGRUT M. PATEL. Change in Tax Rates. Some other Amendments. In the case of a domestic company, rate of S.C. on I.T. reduced from 10% to 7.5%. Rate of MAT on book profit u/s. 115JB enhanced from 15% to 18%.

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Amendments in I.T. Act for A.Y. 2011-12 and Changes in ITR Forms.

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  1. Amendments in I.T. Act for A.Y. 2011-12 and Changes in ITR Forms. JAGRUT M. PATEL

  2. Change in Tax Rates

  3. Some other Amendments • In the case of a domestic company, rate of S.C. on I.T. reduced from 10% to 7.5%. • Rate of MAT on book profit u/s. 115JB enhanced from 15% to 18%.

  4. For Foreign Companies • Foreign companies are taxable @ 40 percent • Surcharge is applicable @ 2.5 percent if total income is in excess of INR 10,000,000.Marginal relief may be available • Education Cess is applicable @ 3 percent on income-tax. For Co-operative Societies • Upto 10000 10 • 10000 to 20000 20 • 20000 & above 30

  5. Insertion of new Section 44AD

  6. Amendments in PGBP Previously u/s 44AF In the case of an assessee engaged in retail trade in any goods or merchandise, a sum equal to 5% of the total turnover in the previous year is considered as net profit.

  7. Sec.-44AD Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to 8%of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession.

  8. Eligiblebusiness means:- 1. Any business except the business of plying, hiring or leasing goods carriages referred to in section 44AE; and 2. Whose total turnover or gross receipts in the previous year does not exceed an amount of sixty lakh rupees. There is specific Turnover limit of Rs. 15 Lakhs for Profession under section 44AB, which means that profession is totally separate from Business.

  9. The assessee is bound to get the books of accounts audited, if the following twoconditions are satisfied:- • His profits and gains from the eligible business are lower than the profits and gains specified in sub-section (1) i.e. his net profit is lower than 8% of turnover. And 2. Whose total income exceeds the maximum amount which is not chargeable to income-tax.

  10. X, A Resident individual, is carrying on three eligible business, the turnover of which is as under :- • Business A ( Manufacturing) Rs. 25 Lac • Business B( Trading) Rs. 15 Lac • Business C ( Service) Rs. 25 Lac Q. Whethersection 44AD applicable on him? The Answer is NO because turnover of eligible business exceed Rs. 60 Lakhs.

  11. X, A Resident individual, is carrying on two business, the turnover of which is as under :- • Business A ( Eligible Business) Rs. 55 Lk • Profession Rs. 10 Lk • Business B( Transport u/s 44AE) Rs. 6 Lk Here, Section 44AD and 44AE both are applicable, as profession is not included under section 44AD and section 44AD and 44AE are independent of each other.

  12. Sec. 44AE • Plying, leasing or hiring of trucks (person should not own over 10 goods carriage at any time during the previous year) • INR 5,000 per month/ part of month for each heavy goods vehicle.   • INR 4,500 per month/ part of month for each light goods vehicle.

  13. Revision of TDS limits and rates- A Glance

  14. Threshold limits forTDS increased w.e.f. 01.07.10:- Last date for filing return for 4th Quarter has been amended to 15th May which was previously 15th June.

  15. There is no changes under Sec. 194A

  16. Introduction of 80CCF

  17. Introduction of 80CCF The new section 80CCF, will offer a deduction of Rs 20,000, in addition to the deduction of Rs 1 lakh under sections 80C, provided the investments are in notified long term infrastructure bonds. The government has proposed this section to promote investments in infrastructure projects in the country.

  18. This section is applicable from A.Y 2011-12. • Deduction under this section is available only to IndividualsandHUFs tax payers. • The long term infrastructure bonds will have tenure of 10 years. • Minimum lock in period of 5 years. • Investments in infrastructure bonds would require PANto be mandatory furnished.

  19. The Central Government have Specified bonds to be issued by: • Industrial Finance Corporation Of India • Life Insurance Corporation Of India • Infrastructure Development Finance Company Limited • A Non-Banking Finance Company Classified as an Infrastructure Finance Company by the Reserve Bank of India as “Long Term Infrastructure Bond” for the purpose of Sec. 80CCF.

  20. Changes in ITR Forms • SAHAJ is the newly designed ITR-1 which replaces SARAL Income Tax Return.

  21. Who can use SAHAJ? This Return Form is to be used by an individual whose total income for the assessment year 2011-12 includes: • Income from Salary/ Pension; or • Income from One House Property (excluding cases where loss is brought forward from precious years); OR • Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

  22. Common Points for all ITRs • For Carry forward losses always use ITR-2 or 4 Only. • No AIR anymore  • Bank Account Detail is mandatory for every return. • Linkages to FORM 26AS • SAHAJ can’t be used if, • - Agriculture income exceed 5000 • - Any brought/Carried forward losses.

  23. For Manual Return Filing: • Bar Code and PAN Number are compulsory on every page • Compulsory Mobile No. • Use of Dropout Ink to reduce Interference • during Data Capture

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