Amendments in I.T. Act for
A.Y. 2011-12 and Changes
in ITR Forms.
JAGRUT M. PATEL
Change in Tax Rates
Income tax slab for A.Y. 11-12
New Income Tax Slabs for ay 11-12 for Resident Senior Citizens
Sr. No.
Income Range
Tax percentage
1
Up to Rs 2,40,000
No tax / exempt
2
2,40,001 to 5,00,000
10%
3
5,00,001 to 8,00,000
20%
4
Above 8,00,000
30%
Income Tax Slabs for ay 11-12 for Resident Women (below 65 years)
1
Up to Rs 1,90,000
No tax / exempt
2
1,90,001 to 5,00,000
10%
3
5,00,001 to 8,00,00
20%
4
Above 8,00,000
30%
New Income Tax Slabs for ay 11-12 Others & Men
1
Up to Rs 1,60,000
No tax / exempt
2
1,60,001 to 5,00,000
10%
3
5,00,001 to 8,00,000
20%
4
Above 8,00,000
30%
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%.
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
• 10000 to 20000
• 20000 & above
10
20
30
Insertion of new Section
44AD
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.
44AD
44AF
44AD
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.
Eligible business 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.
The assessee is bound to get the books of
accounts audited, if the following two
conditions are satisfied:1.
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 incometax.
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.
Whether section 44AD applicable on
him?
The Answer is NO because turnover of eligible
business exceed Rs. 60 Lakhs.
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.
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.
Revision of TDS limits
and rates- A Glance
Threshold limits for
TDS 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.
Sectio
n
Nature of Payment Existing
limit
194B
Winnings from lottery
or
crossword puzzle
194BB
Winnings from horse
race
Revised
limit
If
Recipient
is Comp.,
Co-op
Soc.,
Firm
If
Recipient
is Indiv.
Or HUF
5000
10000
30
30
2500
5000
30
30
194C
Payment To contractors
(for a single
transaction)
(for aggregate of
transactions during
financial year)
20000
30000
50000
75000
2
1
194D
Insurance commission
5000
20000
10
10
194H
Commission or Brokerage
2500
5000
10
10
194I
Rent Other than Plant,
Machinery & Equp.
120000 180000
10
10
Rent Of Plant, Machinery &
Equp.
120000 180000
2
2
10
10
194J
Fees for professional or
technical
services
20000
30000
There is no changes under Sec. 194A
Introduction of 80CCF
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
investments
infrastructure
sections
80C,
are
notified
in
bonds.
The
provided
long
government
the
term
has
proposed this section to promote investments in
infrastructure projects in the country.
• This section is applicable from A.Y 2011-12.
• Deduction under this section is available
only to Individuals and HUFs 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 PAN to be mandatory furnished.
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.
Changes in ITR Forms
o SAHAJ is the
newly designed
ITR-1 which
replaces SARAL
Income Tax Return.
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)
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.
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