Income Tax sections at a glance

CA CS CIMA Prakash Somani , Last updated: 07 October 2020
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Section	Head	Limit	Remarks
Salary:
10(10)	Gratuity	1. 3,50,000 2. Actual 3. Yr15/30Ang salary of 10 Months(Basic+DA+Comm)	Basic + DA (forming part of retirement benefits) + Comm based on % of turn over
10(10A)	Pension	If gratuity is also available: Accumulated Pension1/3 Otherwise: Accumulated pension1/2
10(10AA)	Leave Encashment	1. Actual 2. 3,00,000 3. 10 months avg salary(last drawn) 4. leave encashment max 30 days for every completed yr of service	Basic + DA (forming part of retirement benefits) + Comm based on % of turn over
10(10B)	Retrenchment Compensation	1. Actual 2. 5,00,000 3. Amount calculated in accordance with Industrial Dispute Act
10(10C)	voluntary Retirement	1. Actual 2. 5,00,000 3. Last drawn salary3Months of completed yr of service 4. Last drawn salary* Balance no of months in yr of service left
10(13A)	House Rent Allowance	1. Actual 2. Rent paid - 10% of salary 3. 40% or 50% of salary	Basic + DA (forming part of retirement benefits) + Comm based on % of turn over
10(19)	Family Pension	15000 or 1/3rd of Family Pension
11(1A)	Capital Gains
11(2)	Accumulations of Income
12	Income from Voluntary Contributions
13A	Tax Exemption to Political Parties
16(ii)	Entertainment Allowance	1. 5,000 2. Actual 3. 20% of Basic	Basic
House Property:
	Annual Value	(a). Sum reasonably expected from letting (b). Actual rent recd or receivable (c). If owing to such vacancy actual rent recd or receivable < (a), Actual rent	GAV Less: Municiple Taxes Unrealisable rent NAV Less: 30% of NAV Int(Max 150,000) paid/payable
25AA	Arrears of rent received	Deduction 30% allowed
Deductions from GTI:
80C	LIC, PF Etc	1,00,000*	Maximum of 1,00,000
80CCC	Pension Funds	1,00,000*
80CCD	Pension scheme of CG	1,00,000*
80D	Medical Insurance Premia	20000 for SS/ 15000 for other	Spouse, Parents and children
80DD	Handicapped Dependant	75000 for severe/50000 for normal	Spouse, Parents and children, Bro & Sis (Dependent)
80DDB	Medical treatment	60000 for SS/40000 for other or Actual (Whichever is less)
80E	Higher education	Entire amount for 7 yr from Initial Ass Yr.
80G	Donation to funds etc	No ceiling of 10% of Adj GTI 50% for Gandhi, nehru/100% other Ceiling of 10% of Adj GTI 100% for family planning, sport etc 50% for mandir, charitable etc
80GG	Rent paid	1. 2000 PM 2. 25% of TI (After all deductions) 3. Exp.-10% of TI (After all deductions)
80GGA	donation to scientific research	100%
80GGB	Political parties by company	100%
80GGC	Political Parties by Individual	100%
80JJA	Bio Degradable waste	100% for 5 consecutive assessment
80JJAA	Employement of new workmen	30% of additional wages paid to new regular workmen for 3 Ass yr.
80LA	offshore bankng units	100% for 5 yr/50% for next 5 yr
80P	Co Operative societies	1. For Banking, Cottage, Fishing, Milk Etc=100% 2. Other- a. Consumer Co-Op Socity=100% b. Other=50% 3. Other=100%
80QQB	Royalty from Books	1. Lumpsum- 100% 2. Not Lumpsum- Actual or 3,00,000 (lower)	Royalty>15% shall be ignored, if not paid Lumpsum
80RRB	Royalty from Patents	Actual or 3,00,000 (lower)	Not available to NR
80U	Person with Disability	75000 for severe/50000 for normal
80-IA	a. Infrastructure	100% for 10 yr out of 20 yr's
	b. Telecommunication	100% for 5 yr and 30% for next 5 yr
	c. SEZ/IT park developmt	100% for 10 yr out of 15 yrs
	d. Power business	100% for 10 yr out of 15 yrs
80-IAB	SEZ developmt	100% for 10 yr out of 15 yrs
Taxation of Firms:
Surcharge 10% applicable even if firms Net Income is below Rs. 1 Cr
Maximum Interest on Capital Account 12%
Remuneration to working partner only and only with authorisation in partnership deed
Maximum limit:	Business Firm	First 75,000	50,000 or 90% of Book Profit( Higher)
		Next 75,000	60%
		balance profit*(before adjusting remuneration to partners)	40%
	Professional Firm	First 1,00,000	50,000 or 90% of Book Profit( Higher)
		Next 1,00,000	60%
		balance profit	40%
Remuneration and Interest is allowed from presumptive income U/s 44AD,44AE & 44AF.
If there is a change in constitution of firm than share of retired partner shall not be carry forward
Presumptive Taxation:
44AD	Civil Construction	8% of Gross receipt
44AE	Goods carriage	3500/3150 PM for Heavy/Light Vehicle
44AF	Retail Business	5% of Turnover
Capital Gain:	Repurchase
54	House to house	1 Yr prior or 2 yr after pur/3yr construct
54B	land to land (Agri)	2 Yr from date of transfer
54D	L&B to L&B	3yr from date of transfer	(Compulsary Acquisition)
54EC	Any capital assets to Shares etc.	6 Month from date of transfer
54F	Other to House	1 Yr prior or 2 yr after pur/3yr construct	Not own >1 house other than new asset
54G	L&B/P&M to L&B/P&M	1 yr prior or 3 yr after fron dt of trnsfer	(Urben to Non Urben)
54GA	L&B/P&M to L&B/P&M	1 yr prior or 3 yr after fron dt of trnsfer	(Urben to SEZ)
139(3)	Return of loss	Before 31st Oct of relevant AY
139(4)	Belated return	Before 1 Yr from end of Relevent AY or Before completn of Assessment
139(5)	Revised Return	Return filed originaly U/s 139(1)/142(1) Before 1 Yr from end of AY or compln of Assessment.
139(9)	Defective/Incomplete return
139A	PAN
139B	Tax return prepares
234A	Default in furnishing ROI	1% P.M. or part of Month
234B	Default in payt of Adv. Tax	1% P.M. or part of Month If Adv tax paid is <90% of Tax due.	From April 1 to date of determination of Income
234C	Deferment of Adv tax	1% P.M. or part of Month
234D	Int on Excess Refund	0.50% PM or part of month

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CA CS CIMA Prakash Somani
(Landmark Group)
Category Students Report

Income Tax sections at a glance

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