“A PROJECT REPORT ON DIRECT TAX”
Submitted in partial fulfillment of the reuirement reuirement
!or "CO" PART #nd SE" $rd %#&'()#&'*+
,"ISS. RAJES/RI 0D01IRI 2nder the 3uidan4e 3uidan 4e of "S AN2RAD/A 5A-AST/ 5A-AST/
2NI6ERSIT- O! "2",AI S/ET/ T0J0ED2CATION T0J0ED2CATION SOCIET-S SOCI ET-S S/ET/ N050T0T CO77E1E O! CO""ERCE 8 S/ET/ J0T0T CO77E1E O! ARTS9 T/ANE :;EST<
S/ET/ T0J0ED2CATION T0J0ED2CATION SOCIET-S SOCI ET-S S/ET/ N55T CO77A1E O! CO""ERCE 8 S/ET/ JTT CO77E1E O! ARTS CERTI!ICATE
Thi= i= to 4ertif> that "ISS. RAJES/RI RAJES/RI D/AR"ENDRA D/AR"ENDRA 1IRI "04om Part #nd9 =eme=ter ) $ rd 9 Roll No ?* ha= underta@en and
of
4ompleted
the proe4t proe4t report report on) DIRECT DIRECT T TA AX Durin3 Durin3 the a4adem a4ademi4 i4 >ear #&'( B #&'* 2nder the 3uidan4e 3uidan 4e of "S AN2RAD/A 5A-AST/ 5A-AST/ on
=ubmitted =ubmitt ed
#&'( date to thi=9 Colle3e Colle3e in fulfillme fulfillment nt of 4urri4ulum 4urri4ulum of
"04om 2NI6ERSIT2NI6ERSIT- O! "2",AI "2",AI Thi= Thi= i= bonafide proe4t proe4t or@ and and information pre=ented i= true and to the be=t of m> @noled3e and belief0
PROJECT 12IDE
EXTERNA7 EXA"INE
CO2RSE COORDINATOR
PRINCIPA7
DEC7EARATION
I RAJES/RI RAJES/RI D/AR"ENDRA D/AR"ENDRA 1IRI here b> de4lared de4lared that proe4t proe4t report report entitled
.
DIRECT
TAX
under
the
3uidan4e
of
"S.AN2R "S.AN2RAD/ AD/A A 5A5A-AST/ =ubmitte =ubmitted d in partia partiall !ulfil !ulfillme lment nt of the reuirement for the aard of de3ree of "ASTER O! CO""ERCE b> 2NI6ERSIT- O! "2",AI i= m> ori3inal or@0
RAJES/RI D/AR"ENDRA 1IRI C7ASS. "CO" PART PART # nd DI6ISION. A RO77 NO ?* P7ACE. T/ANE
SI1NAT2RE.
AC5NO;7ED1"ENT
I ta@e thi= opportunit> to epre== and re4ord m> than@= and 3ratitude to S/ET/ N050T0T0 CO77E1E T/ANE and entire fa4ult> of =eme=ter $ rd of "04om 4our=e in the 4olle3e0 !urt !urthe herr I al=o al=o a4@n a4@no ole led3 d3m men entt m> =in4 =in4er eree and and =pe4 =pe4ia iall th than an@= @= and and 3ratit titude
to m>
proe4 e4tt
3uide9
PRO PRO!9 A0
O0
5/ADSE
Proe4 e4tt
COORDINATTOR and PRINCIPA7 DR P0"05AR5/E7E ithout ho=e 4ontinue= 3uidan4e and en4oura3ement It ould not been po==ible for me to 4omplete thi= proe4t or@0 I epre== m> than@= to all m> 4ollea3ue=9 friend ith hom I haFe had debate= and di=4u==ion on the =ube4t hi4h ha= al=o helped0
INDEX
•
• •
• • • • • • • •
• • • • • • •
•
•
•
SECTION)' Definition= B: S0#< Person, Assessee, Income. ,a=i= of Char3e :S0 $to G < Previous Year, Assessment Year, Residential Status, Scope of Total Income, Deemed income E4lu=ion= from Total Total In4ome : S0'&< Exemptions related to specified Heads of incomes to be covered it! t!e relevant provisions suc! as Salar", Income from #t!er Sources. A$ricultural Income Sum received from H%& b" a member S!are of a profit from &irm Income from 'inor (!ild Dividend /ead= of In4ome )Includin$ relevant items from S * and S +Salar" )S. + to S. +/Income from !ouse Propert" )S. ** to S. */Profits and 0ains from 1usiness, Profession Profe ssion 2 3ocation 3ocation )S. *4 to 5* 5, 56, 5/, 7, 7A, 751(apital 0ains )S. 7 to S (Income from #t!er Sources )S.6 to S. 8Dedu4tion 2= H& S. 4(, 4((&9 4D, 4DD, 4DD1, 4E, 4%9 Computation of In4ome and ta for IndiFidual9 !irm and Compan> )excludin$ 'ATAdFan4e Ta pa>ment) S #&H ProFi=ion= for filin3 of return= : In4ludin3 form= for m= of Return< Se4)'$G:'<9 '$G:(<
SECTION #
C/AN1ES IN INCO"E TAX S7A, RATES IN PRE6I2OS !I6E -EAR
SECTION)I. DIRECT TAXES B INCO"E TAX INTROD2CTION AND ,ASIC CONCEPTS S>nop=i= +. Introduction and #b:ectives *. Assessment Year 5. Previous Year 7. Person . Assessee 6. Assessment /. Income 4. 0ross Total Income 8. Total Income +.Sc!eme of c!ar$in$ income tax ++.Self Examination ;uestions '0 INTROD2CTION AND O,JECTI6ES . Income tax is levied b" t!e (entral 0overnment under entr" 4* of t!e %nion of Sc!edule 3II to (onstitution of India. T!is entr" deals it!
is ac!ieved b" t!e enactment of t!e Income Tax Tax Act, +86+ ?@T!e ActB. T!e Act provides for t!e scope and mac!iner" for lev" and collection of Income Tax in India. It is supported s upported b" Income Tax Tax Rules, +86* and several ot!er subordinate rules and re$ulations. 1esides, circulars and notifications are issued b" t!e (entral 1oard of Direct Taxes )(1DT- and sometimes b" t!e 'inistr " of &inance, 0overnment of India dealin$ it! various aspects of t!e lev" of Income tax. %nless ot!erise stated, references to t!e sections ill be t!e reference to t!e sections of t!e Income Tax Tax Act, Act, +86+. Section 7, !ic! is t!e c!ar$in$ section, provides t!at Income tax is a ta on the total in4ome of a per=on called t!e assessee of the preFiou= >ear relevant to t!e a==e==ment >ear at t!e rates prescribed in t!e relevant &inance Act T!is lesson deals it! all t!ese aspects, !ic! la" don t!e basic frameor> for lev" of income tax in India and also explains t!e basic concepts and terms used in t!e income tax la. #0 ASSESS"ENT -EAR B S0 #:G<
Section *)8- defines an @Assessment "ear as “the period of telFe month= =tartin3 from the fir=t da> of April eFer> >ear @
An assessment "ear be$ins on +st April ever" "ear and ends on 5+st 'arc! of t!e next "ear. &or example, Assessment Assessment "ear *+*C+5 means t!e period of one "ear be$innin$ on +st April, *++ and endin$ on 5+st 'arc!, *+*.
In an assessment "ear, income of t!e assessee durin$ t!e previous "ear is taxed at t!e rates prescribed b" t!e relevant &inance Act. It is t!erefore, also called as t!e @Tax Year Year $0 PRE6IO2S -EAR) S0 #:$?< 8 S0 $ $0'0 Defintion.
Section 5 defines @Previous "ear as “the finan4ial >ear immediatel> pre4edin3 the a==e==ment >ear” .
Income earned in one financial "ear is taxed in t!e next financial "ear. T!e "ear in !ic! income is earned is called t!e @previous "ear and t!e "ear in !ic! it is taxed is called t!e @assessment "ear. T!is ill be explained from t!e folloin$ illustration
$0#0 Common preFiou= >ear for all =our4e of in4ome.
A person ma" earn income from more t!an one sources but previous "ear ill ala"s be common for all t!e sources of income .T!is ill be so even if a person maintains records or boo>s of accounts separatel" for different sources of income. Total income of a person from all t!e sources of income ill be ta>en to$et!er and considered in t!e previous "ear "ear or financial "ear immediatel" precedin$ t!e assessment "ear. $0$0 Ne ,u=ine== or Profe==ion. !ere , a business is nel" set up durin$ t!e previous "ear , or !ere a ne source of income !as arisen durin$ t!e previous "ear ,t!e previous "ear ill be t!e period ) obviousl" less t!an one "ear- commencin$ from t!e date of settin$ up of t!e ne business or t!e date of ne source of income arisin$. $0?0 E4eption. T!ere are some exceptions to t!e rule t!at income of t!e previous "ear is taxable in t!e next assessment "ear. In suc! cases, t!e income of is taxed in t!e previous "ear itself. As a result, 6 in suc! case, a financial "ear becomes t!e previous "ear as ell as t!e assessment "ear. T!eses exceptions are provided to ensure safe$uards to smoot! collection of income tax from a class of taxpa"ers !o ma"
not be traceable till t!e commencement of t!e normal assessment "ear. The E4eption= referred to aboFe are. a- Income of nonCresidents from s!ippin$ businessS.+/*F b- Income of persons leavin$ India eit!er permanentl" or for a lon$ period of time and not li>el" to return bac> S. +/5C+/7 F c- Income of bodies formed for s!ort duration for a particular event or purpose S +/7AF d- Income of a person tr"in$ to alienate !is assets it! a vie to avoidin$ pa"ment of tax S. +/ , e- Income of a discontinued businessC S.+/6 f- Realisation of ritten off bad debtsCS 7+)+$- Dividend incomeCS 6 ?0 . PERSON BS0 #:$' ?0' Definition. Section *)5+- $ives an inclusive definition of @person @Person includes9 a- an individualF b- a Hindu undivided famil" )H%&-F c- a compan"F d- a firmF e- an Association of Persons)A#P- or a 1od" of Individuals,)1oI- !et!er incorporated or notF f- a local aut!orit"F and $- ever" artificial :uridical person not fallin$ it!in an" of t!e precedin$ cate$ories ?0# In4lu=iFe definition. Since t!e above definition of @person is inclusive one and not ex!austive, t!ere ma" be cases, !en an entit" not fallin$ in t!e above seven cate$ories ma" still be treated as @person invitin$ t!e provisions of t!e Act. ?0$ Profit "otiFe not ne4e==ar> 9 As per Explanation to S. * )5+-, an entit" need not be formed for profit. T!us, GonCProfit #r$anisations or c!aritable trusts are also covered b" t!e definition of @person alt!ou$! t!eir income is / not taxable under t!e Act on satisf"in$ t!e certain terms and conditions. ?0? De=4ription of t>pe= of per=on= . A brief description of t!ese seven cate$ories is as follos9 a0 IndiFidual= are all livin$ persons of blood and fles! e.$. .Ram, S!"am, 0opal, Albert, Ibra!im etc. b0 /indu 2ndiFided !amilie= )H%&- or Hindu :oint families are re$arded as separate tax entities in vie of t!e specific la of succession prevalent amon$ t!e Hindus. 40 Compan> as per section *)5+- includes Indian as ell as forei$n companies and public as ell as private (ompanies. 1esides, t!e (1DT !as t!e poer to declare an" institution as a (ompan". (ompan". Section * companies )c!aritable companies- are also included under t!e purvie but !ave separate exemptions
under t!e Act. d0 Partner=hip firm= includin$ imited iabilit" Partners!ips )Ps- are re$arded as distinct taxable units separate from t!eir partners. T!erefore, under t!e Act, Act, firms are taxed as t!e firms and individual partners are taxed separatel" in t!eir personal capacit". e0 1#I and A#P are t!e $roup of persons carr"in$ on some activities to earn income suc! as :oint venture. Gormall" A#Ps A#Ps are contractual in nature li>e a :oint venture a$reement if suc! venture not formed as a partners!ip or a compan". #n t!e ot!er !and, 1#I ma" be due to circumstances suc! as :oint oner of a estate. (lubs, Societies, (!aritable Trusts Trusts etc are covered under t!is !ead. f0 'unicipal corporations, Panc!a"ats, (antonment 1oard, ila Paris!ads etc are t!e examples of ocal aut!orities. 30 &inal cate$or" is residual cate$or" and covers all suc! persons !ic! are not covered in an" of t!e above six cate$ories. 4 Hindu Joint &amil" of S!ri P.1. H%& Pune (antonment 1oard ocal Aut!orit" 'umbai %niversit" Artificial Juridical Person Ramsa" 1rot!ers doin$ business in partners!ip &irm (0 ASSESSEEBS0 #:< (0' Definition 9 %Ks *)/- @Assessee means a person b" !om income tax or an" ot!er sum of mone" is pa"able under t!e Act and it includes9 a. ever" person in respect of !om an" proceedin$ under t!e Act !as been ta>en for t!e assessment of !is income or loss or t!e amount of refund due to !im b. a person !o is assessable in respect of income or loss of anot!er person or !o is deemed to be an assessee, or c. an assessee in default under an" provision of t!e Act (0# T!e definition of @assessee is also inclusive one and ma" include an" ot!er person is not covered in t!e above cate$ories. In ot!er ords, t!e definition of t!e assessee is so ide t!at so as to include a person !imself or !is representative suc! as le$al !eir, trustee etc. 'oreover, importance is $iven not onl" to t!e amount of tax pa"able but also to refund due and t!e proceedin$s ta>en. 8 (0$ Definition of t!e en for t!e assessment of !is 9 a. income or b. loss or
c. t!e amount of refund due to !im 5. A person !o is assessable assessab le in respect of income or loss of anot!er person or 7. A person !o is deemed to be an assessee, . an assessee in default under an" provision of t!e Act (0? A minor c!ild is treated as a separate assessee in respect of an" income $enerated out of activities performed b" !im li>e sin$in$ in radio :in$les, actin$ in films, tuition income, deliverin$ nespapers, etc. Hoever, income from investments, capital $ains on securities !eld b" minor c!ild, etc. ould be taxable in t!e !ands of t!e parent !avin$ t!e !i$!er income )mostl" t!e fat!er-, unless if suc! assets !ave been acLuired from t!e minor=s sources of income. *0 ASSESS"ENT ) S #:H< An assessment is t!e procedure to determine t!e taxable income of an assessee and t!e tax pa"able b" !im. S. *)4- of t!e Income Tax Tax Act, +86+ $ives an inclusive definition of assessment @an a==e==ment in4lude= rea==e==ment “ %Ks +58 of t!e Act, ever" assessee is reLuired to file a self declaration of !is income and tax pa"able b" !im called @return of income. T!e Income Tax Tax officer ma" accept t!e return summaril" it!out ma>in$ an" enLuir" into its contents. T!is is called as t!e in$ necessar" enLuir" frames a reasoned order determinin$ t!e total income and t!e tax pa"able b" t!e assessee T!is is called t!e @re$ular assessmentCS +75)5-. (ompleted assessment becomes final except in certain circumstances. T!ese circumstances areF a. %Ks +7/ , an assessment can be reopened to assess income !ic! !as escaped assessment, + b. %Ks *65 , t!e (ommissioner of Income Income Tax Tax ma" as> an assessment to be redone if t!e assessment order is erroneous and pre:udicial to t!e interest of t!e revenue , c. %Ks *67, t!e (ommissioner of Income Tax at t!e application of an assessee or suo or suo motu, motu, ma" as> an assessment to be redone. T!is is normall" done to $ive relief to t!e assessee. d. %Ks *7, t!e Income Tax Appellate Tribunal )ITAT- in appeal proceedin$s ma" pass an order directin$ t!e assessment to be redone . In all t!e above cases @reassessment of t!e income is reLuired to be done. T!e definition of assessment includes t!e re$ular assessment and reopened or reassessment. 0 INCO"E) S #:#?< 0' Definition Alt!ou$!, income tax is a tax on income, t!e Act does not provide an" ex!austive definition of t!e term @Income. Instead, t!e
term , cas! assistance and DEP1 CS. *4)iiia-, iiib-and )iiic-, d. t!e value of an" benefit or perLuisite taxable t!e value of an"
benefit or perLuisite taxable S *4 )iv-F e. sum received from nonCcompete a$reements C S *4 )va-F f. 1alancin$ c!ar$eKot!er receipts earlier alloed as deduction S 7+ $. t!e profits and $ains of an" business of insurance carried on b" a mutual insurance compan" or b" a coCoperative societ"C S.77 an" surplus ta>en to be suc! profits and $ains b" virtue of provisions contained in t!e &irst Sc!edule !. t!e profits and $ains of an" business of ban>in$ )includin$ providin$ credit facilities- carried on b" a coCoperative societ" it! its membersF vii. an" capital $ains c!ar$eable under section 7F viii. )vii- an" sum earlier alloed as deduction and c!ar$eable to incomeCtax under Section 8 +* ix. an" innin$s from lotteries, crossord puMMles, races includin$ !orse races, card $ames and ot!er $ames of an" sort or from $amblin$ or bettin$ of an" form or nature !atsoever F x. an" contribution received from emplo"ees toards an" provident fund or superannuation fund or Emplo"ees State Insurance Act, +874 , or an" ot!er fund for t!e elfare of suc! emplo"ees F xi. an" sum received under a Ne"man insurance polic" includin$ t!e sum allocated b" a" of bonus on suc! polic". polic ". xii. an" sum of mone" or value of propert" received as $ift S 6)*and S!ares of closel" !eld companies transferred to anot!er compan" or firm are covered in t!e definition of $ift except in t!e case of transfer of suc! s!ares for reor$aniMation of business b" amal$amation or demer$er etc . 0# T!e term @income includes not onl" t!e revenue receipts arisin$ or accruin$ re$ularl" but also capital receipts li>e $ifts and even donations. #n t!e ot!er !and certain revenue receipts li>e a$ricultural income are left out from t!e scope of t!e term income. Some of t!e principles t!at !ave emer$ed out as a result of customs, practices and :udicial pronouncements to ascertain as to !at does or does not constitute income are as follos. +. Revenue receipts are normall" re$arded as income unless specificall" exempted Income is li>e t!e fruit of a tree, !ere tree is t!e source and fruits are t!e income. *. T!us income is normall" a re$ular periodical receipt, received or derived from a certain source. 5. T!e source of income must be external. Go one can earn income b" or from !imself. T!erefore, income accruin$ to clubs, societies etc from t!eir on members are not ta>en as taxable income on t!e $round of mutualit". 7. Income ma" be in cas! or >ind. . Source of Income ma" be le$al or ille$al e.$. briber", corruption etc. 6. it is t!e receipt !ic! is re$arded as income and not t!e application or use of t!e income.
/. Receipts, if diverted at t!e source are not re$arded as incomeK 4. An" dispute re$ardin$ t!e title of t!e income does not ta>e aa" its nature as income. 8. 0ifts ere considered as capital receipts. Hoever t!e position is drasticall" c!an$ed to include9 +5 a. t!e personal $ifts made b" t!e emplo"er in t!e definition of salar", b. t!e personal $ifts made b" t!e clients in t!e definition of business income and c. $ifts of cas! in excess of Rs. , in a$$re$ate, an" immovable propert" li>e land, buildin$, propert" , t!e stamp dut" value of !ic! exceeds Rs ,, S!ares and ot!er securities in excess !avin$ fair mar>et value of Rs , in a$$re$ate T!ese $ifts are sub:ect to certain exemptions li>e gift li>e gift mortis causa ( in in contemplation of deat!- $ifts on t!e occasion of marria$e and $ifts from defined relatives )discussed later in t!e c!apter @ Income from #t!er Sourcesd. &air mar>et value or difference beteen t!e actual consideration and fair mar>et value of s!ares of closel" !eld companies transferred to anot!er compan" or firm except in t!e case of transfer of suc! s!ares for reor$aniMation of business b" amal$amation or demer$er etc. +.A distribution of surplus arisin$ from a mutual activit" is not considered as income. T!us, a surplus received from a mutual or$anisation li>e emplo"ees= tea club, or a coCoperative !ousin$ societ" ill not be t!e income on t!e $round of mutualit". ++.Income ma" be reco$nised eit!er on receipt basis or on accrual basis dependin$ upon t!e facts and circumstances of eac! case and met!od of accountin$ applied in t!at case. +*.Income must be certain. (ontin$ent income is not re$arded as income unless and until suc! contin$enc" occurs and t!e income arises to t!e assessee. +5.Income is t!e sum total of all receipts from all t!e sources and considered accordin$l". +7.Pin mone" received b" a oman for personal expenses or even t!e savin$s made b" !er from suc! receipts is not considered as income. Hoever t!e !usband ill not $et an" credit from !is income for t!ese pa"ments. +.Income ma" be received in lump sum or in instalments. T!us, arrears of salar" received b" a person in lump sum are re$arded as !is income. +6.Gormall" onl" revenue receipts are re$arded as income and not t!e capital receipts unless specificall" provided for. &or example9 'aturit" proceeds of Ne"man Insurance Polic",
+7 sales tax subsid", 3o 3oluntar" contribution b" a donor to a trust are considered as income t!ou$! capital in nature. +/.Aards +/.Aards received b" a professional sportsperson ould be income unless t!e aard is in nature of a $ift in personal consideration. Some of t!e above items are discussed in detail in latter c!apters at appropriate places. +4.Even if t!e business is not of le$al nature li>e smu$$lin$, briber", !aala business, etc., t!e income arisin$ out of suc! business ill still be taxable accordin$ to t!e decisions of t!e courts. +8.Income of ife is be taxable in t!e !ands of t!e !usband if t!e assets out of !ic! t!e income is arisin$ !as not been acLuired out of t!e sources of t!e ife or from an asset $ifted b" t!e !usband except as consideration for livin$ apart. *.Income of minor c!ildren is be taxable in t!e !ands of t!e parents !avin$ !i$!er income ? mot!er or fat!erB except !en t!e income is arisin$ from t!e efforts of t!e minor c!ild sa" modelin$ c!ar$es. H0 1ROSS TOTA7 INCO"E) S )'?. Section +7 of t!e Act defines t!e 0ross Total Total Income as t!e a$$re$ate of t!e incomes computed under t!e five !eads after ma>in$ ad:ustments for setCoff and carr" forard of losses. T!e five !eads of income are as follos namel"9 +. Income from Salaries *. Income from House Propert" 5. Profits and 0ains from 1usiness 2 Profession 7. (apital 0ains . Income from #t!er Sources T!e a$$re$ate income under t!ese !eads is termed as @0ross Total Total Income In ot!er ordsF $ross total income means total income computed in accordance it! t!e provisions of t!e Act before ma>in$ an" deduction under under sections 4( to 4%. Hoever, Hoever, an" exemptions as alloed b" Section + are deducted from t!e respective !eads before arrivin$ at t!e $ross total income li>e conve"ance alloance, capital $ains on sale of personal effects, dividend income, etc. G0 TOTA7 INCO"E. T!e total income of an assessee is computed b" deductin$ from t!e $ross total income all permissible deductions available under t!e (!apter 3I A of t!e Income Tax Tax Act, +86+. T!is is also referred to as t!e @Get Income or @Taxable Income. + '&0 SC/E"E O! C/AR1IN1 INCO"E TAX Income tax is a tax on t!e total income of an assessee for a particular assessment "ear. T!is implies t!atF IncomeCtax is an annual tax on income Income of previous "ear is c!ar$eable to tax in t!e next folloin$ assessment "ear at t!e tax rates applicable for t!e assessment. "ear T!is rule is, !oever, sub:ect to some
exceptions discussed in Para 7 above. Tax rates are fixed b" t!e annual &inance Act and not b" t!e IncomeCtax Act. &or instance, t!e &inance Act, *+* fixes tax rates for t!e assessment "ear *+5C+7 )&inancial "ear *+*C *+5 Tax is c!ar$ed on ever" person if t!e $ross total income exceeds t!e minimum income c!ar$eable to tax. Tax Tax rates are ar e $iven in t!e lesson dealin$ it! computation of income . ''0 SE7! ASSESS"ENT K2ESTIONS +. Income of a previous "ear is c!ar$eable tax in t!e immediatel" folloin$ assessment "ear. Is t!ere an" exception to t!is ruleO Discuss *. Define t!e term @person 5. Ho ould "ou calculate incomeCtax for t!e assessment "ear *+*C+5 in t!e case of different assessesO 7. Explain !o education cess ill be computed for t!e assessment "ear *+*C+5O ?Ans9 *Q+ B . !at ill be t!e previous "ear for , !o starts !is business on April 6, *++? Ans9 A.Y. *+*C+5B 6. ill t!e anser to ; be different, if starts !is business on *4t! 'arc!, *++O ? An=9 A.Y. *++C+*B /. Explain t!at a financial "ear is a previous "ear and also an assessment "ear. Ever" financial "ear can also be an assessment "ear, 4. Previous "ear is a financial "ear immediatel" precedin$ t!e Assessment "ear (omment 8. !at ill be t!e status of %niversit" of 'umbaiO ?Ans9 Artificial :uridical personB +6 +. Indicate !et!er t!e folloin$ persons ill be taxed as individuals9 a- a partner of a firm b- Y, Y, a mana$in$ director of A tdF c- is t!e member of H%& d- 'unicipal (ommissioner of 'umbai in respect of t!e Income of t!e 'unicipal (orporation e- 'unicipal (ommissioner of 'umbai in respect of !is salar" from t!e 'unicipal (orporation f- A minor actin$ in T3 commercials ?Ans9 All except )d- ill be taxed, ta xed, &irm , A td, H%&, 'un (orpn. Separate tax entitiesB
INCO"E TAX TAX S7A, !OR #&&G
&olloin$ income tax tables indicate income tax slab for *4C*8. T!e first column indicates t!e income tax slab, and t!e second column indicates t!e income tax applicable on income. Income tax indicates t!e percenta$e t!at needs to be paid as tax on "our income. India In4ome ta =lab= #&&H)#&&G for "en
Income tax slab )in Rs.-
Tax
to +,,
Go tax
+,, to 5,,
+
5,, to ,,
*
Above ,,
5
India In4ome ta =lab= #&&H)#&&G for omen
Income tax slab)in Rs.-
Tax
to +,4,
Go tax
+,4, to 5,,
+
5,, to ,,
*
Above ,,
5
India In4ome ta =lab= #&&H)#&&G for Senior 4itiLen
Income tax slab)in Rs.-
Tax
to *,*,
Go tax
*,*, to 5,,
+
5,, to ,,
*
Above ,,
5
'ain attraction C Income tax exemption limit increased. Income tax exemption limit for senior citiMens is no *.7 la>!, for omen it is +.8 la>! and for all ot!ers t!e income tax exemption limit ill be +.6 la>!.
Income tax slab base bas e for *8C*+ raised to +.6 la>! for individual tax pa"er. T!is in an increase of slab base from t!e earlier Rs +. la>!. &or omen t!e exemption limit accordin$ to latest tax slab ill be Rs +.8 la>!, !ic! is an increase of Rs +, from t!e earlier rate of Rs +.4 la>!. Senior citiMens ill en:o" an extra Rs + as t!e exemption limit is increased to Rs *.7 la>!s from an earlier *.* la>!s.
INCO"E TAX S7A, !OR #&''
&olloin$ income tax tables indicate indicat e income tax slab s lab for *+C*++. T!e T!e first column indicates t!e income tax slab, and t!e second column indicates t!e income tax applicable on income. Income tax indicates t!e percenta$e t!at needs to be paid as tax on "our income.
India In4ome ta =lab= #&'&)#&'' for "en
Income tax slab )in Rs.-
Tax
to +,6,
Go tax
+,6,+ to ,,
+
,,+ to 4,,
*
Above 4,,
5
India In4ome ta =lab= #&'&)#&'' for ;omen
Income tax slab )in Rs.-
Tax
to +,8,
Go tax
+,8,+ to ,,
+
,,+ to 4,,
*
Above 4,,
5
India In4ome ta =lab= #&'&)#&'' for Senior 4itiLen
Income tax slab )in Rs.-
Tax
to *,7,
Go tax
*,7,+ to ,,
+
,,+ to 4,,
*
Above 4,,
5
0eneral basic exemption e xemption limit to be increased incr eased from +,6, to +,4,. T!e exemption limit for omen assesses to be retained at +,8 ,. 1asic exemption limit for senior citiMens to be increased from *,7, to *,, Relaxation for Senior (itiMens A$e criterion for senior citiMens to be relaxed from 6 "ears to 6 "ears. Ge cate$or" of ver" senior citiMens of 4 "ears and above to be eli$ible for !i$!er basic exemption limit of ,,.
