ASSESSEE
INCOME TAX IS IMPOSED ON
INDIVIDUALS
HINDU UNDIVIDED FAMILY (HUF)
COMPANIES
FIRMS
ASSOCIATION OF PERSONS
ARTIFICIAL JUDICIAL PERSONS
20/01/12
WHAT IS ACCOUNTING YEAR
THE F.Y YEAR IN WHICH INCOME IS
RECEIVED i.e. 2012-13
WHAT IS ASSESSMENT YEAR
THE YEAR IN WHICH LAST
FY INCOME IS ASSESSED i.e.2013-14
20/01/12
INCOME
THE FOLLOWING CONSTITUTES INCOME
OF AN INDIVIDUAL ASSESSEE
•
•
•
•
•
•
•
•
•
•
•
20/01/12
SALARY, ALLOWANCES, PENSION, PERQUISIT
COMMISSION
PROFESSIONAL FEE
PROFIT FROM BUSINESS
EARNING FROM PROPERTY
INTEREST (FROM BANK etc.)
LOTTERY / PRIZE
INCOME FROM SHARE / DEBENTURE
CAPITAL GAIN
ROYALTIES
DIRECTOR’S FEES
EXEMPTION FROM INCOME
Agricultural income
Sec. 10(1)
• Agricultural Income is Exempted from Income Tax.
• However it is added to other taxable income for the
purpose of computation of Income Tax on non
agriculture income.The calculation is required only
when the non agriculture income exceeds the
maximum exemption limit and the net agriculture
income exceeds Rs. 5,000.
20/01/12
EXEMPTION FROM INCOME (Con..
Money received under Life Insurance Policy
Sec. 10 (10D)
Full amount received including Bonus. But excluding Monies received under Key-man policies.
 Monies received under Jeevan Aadhar Plan when
the handicapped beneficiary predeceases the L/A
 In policies where the annualised premium exceeds
20% of Sum Assured for policies issued on or after
st April’ 03.
1
20/01/12
EXEMPTION FROM INCOME (Con..
House Rent Allowance received
Sec. 10 (13A)
When an employee stays in rented house.
Amount of exemption is the least of the
following
 Actual H.R.A. received
 Rent paid in excess of 10% of salary
 50% of salary in metro cities
 40% of salary in other places
20/01/12
EXEMPTION FROM INCOME (Con..
Conveyance Allowance received
Sec. 10 (14)
Expenditure incurred on
conveyance during
performance of the duty is
exempted upto Rs.800 pm.
20/01/12
DEDUCTION FROM
INCOME
SECTION 80 C
Max. Rs 1,00,000/-
Life Insurance premium
Contribution to CPF, GPF, PPF .
Contribution to ULIPs & MFs.
Premium under Jeevan Akshay , Jeevan Dhara policies.
Repayment of Housing Loan Principal.
School/College tuition fees paid for two children.
Fixed Deposits in Bank for 5 years or more.
Deposits in NSC
Po TERM DEPOSIT,SCSAVING SCHEME-2004
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 CCC
Max. Rs 1,00,000/-
Premium paid under Jeevan Suraksha and
Jeevan Nidhi policy of LIC
Payment towards pension fund of any other
Insurance company
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 CCD
Max. Rs 1,00,000/-
Contribution to specified Pension scheme
by Employee of Central Government.
Maximum 10% of the salary for employees
recruited on or after 01.01.2004.
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 CCE
Total amount deposited under Sec.
80 (C) + 80 (CCC) + 80 (CCD) Maximum
Deduction allowed is Rs. 1,00,000/-
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 CCF
Deduction in respect of subscription
to long term infra structure bonds
Rs. 20,000/-.This is in addition to Rs.1lac
u/s 80C.
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 CCG
RAJIV GANDHI EQUITY SCHEME-FOR NEW
RETAIL INVESTERS WITH INCOME LESS
THAN 10 LAKHS . 50% EXEMPTION ALLOWED
MAX INVESTMENT – 50000/-. LOCK IN PERIOD
3 YEARS. SPECIFED EQUITIES ONLY
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 24 (2)
Deduction allowed for payment of interest on
House building Loan :
Maximum Rs 30,000/- if loan availed on or
before 31.3.1999.
Maximum Rs 1,50,000/- if loan availed on or
after 01.4.1999.
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 37 (1)
Payment of insurance Premium
under Key-man insurance is treated
as expense if the premium is paid
from firm’s account hence deducted
from income.
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (D)
Premium paid for Health Insurance policy including
central Govt Health Scheme covering self, spouse,
children and dependent parents premium paid other
than cash.
Maximum Rs 15,000/-For senior citizens maximum
Rs 20,000/Budget 2008-09 proposed that an additional deduction of
up to 15000 would be available if you pay Health
Insurance Premium for your parent/(s). (It is immaterial,
whether parent/(s) are dependable or not on you.)
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (DD)
Expenses towards maintenance including
treatment of disabled dependents. This includes
Premium paid towards LIC’s Jeevan Aadhar
Policy:
Maximum Rs 50,000/-
Max. Rs 75,000/- if deformity is more than 80%
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (DDB)
Amount spent for treatment
of the chronic diseases:Neurological disease
Cancer
AIDS
Chronic Renal Failure
Hemophilia
Thalassamia
20/01/12
# Maximum Rs 40,000/-
# Maximum Rs 60,000/for Senior Citizens
DEDUCTION FROM INCOME
(Con..
SECTION 80 (U)
Deduction for permanent Physical
Disability of self
Maximum Rs 50,000/For senior citizens Max. Rs 75,000/-
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (E)
Payment of Interest towards Educational
Loan taken for higher education of the
Assessee himself or for children
Total amount paid without any limit
Maximum period of 8 years or repayment
of loan whichever is earlier
Allowed to the parents or ward
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (G)
 DONATION TO CERTAIN FUNDS / APPROVED
CHARITABLE INSTITUTIONS
.
 50% OF DONATION (100% IN CASE OF CERTAIN
SPECIFIED FUNDS)
 MAXIMUM 10% OF TAXABLE INCOME
 NO DEDUCTION AT SOURCE (EXCEPT IN CASE
OF CERTAIN SPECIFIED FUNDS)
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (GG)
Rent paid by as assessee who is not in receipt of HRA
The assessee, spouse or minor children does not own
any residential house at any place.
Least of the following is exempted.
[a] Rent paid in excess of 10% of total income.
[b] Rs 2000/- per month.
[c] 25% of the total income
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (GGA)
 DONATION TO CERTAIN SCIENTIFIC RESEARCH
OR RURAL DEVELOPMENT
50% .OF DONATION (100% IN CASE OF CERTAIN
SPECIFIED FUNDS)
 MAXIMUM 10% OF TAXABLE INCOME
 NO DEDUCTION AT SOURCE (EXCEPT IN CASE
OF CERTAIN SPECIFIED FUNDS)
20/01/12
DEDUCTION FROM INCOME
(Con..
SECTION 80 (QQB)
Deduction in respect of the royalty
Income of authors
Maximum deduction allowed Rs 3,00,000/20/01/12
Life Insurance Business
&
Union Budget 2012-13
A PRESENTATION
References
• The Finance Bill, 2012
The IT Act 1961
• The Chapter XVII-C of the Act
What is New…
•
•
•
•
•
The DTC is to be Implemented from April 2013.
Income up to INR 2.00 Lac Exempted from I Tax.
Senior Citizens’ Age Limit Lowered to 60 Years.
‘Very Senior Citizens’ – New Category Age 80 & more.
The ‘Salaried’ Individuals need not file I T Returns –
Employers to File Returns.
• Investment in Infra Structural Bonds up to INR 20000 (U/S
80 CCF) I T Exempted (over & above U/S 80C) – Extension
of the Benefit for 1 Year.
• Service Tax on conventional life insurance endowment
plans hiked from 1.54 TO 3.0 %
• Service Tax on all ULIP charges re-imposed.
RATES of IT - Individuals
(Other than females & senior citizens)
1. Where the total income does not exceed
Rs.200000
NIL
2. Where the total income exceeds
10 % of amount by which the total income
Rs.200000/ - but does not exceed Rs.500000/- exceeds Rs.200000/-
3. Where the total income exceeds
Rs.500000/- but does not exceed
Rs.1000000/-
Rs.300000/- plus 20 % of the amount by
which the total income exceeds Rs.500000/-
4. Where the total income exceeds
Rs.1000000/-
Rs.130000/- plus 30% of the amount by which
the total income exceeds Rs.1000000/-
RATES of IT – Individuals
(Females)
1. Where the total income does not exceed
Rs.200000/-
NIL
2. Where the total income exceeds
Rs.200000/- but does not exceed
Rs.500000/-
10% of amount by which the total
income exceeds Rs.200000/-
3. Where the total income exceeds
Rs.500000/- but does not exceed
Rs.1000000/-
Rs.30000/- plus 20% of the amount by
which the total income exceeds
Rs.500000/-
4. Where the total income exceeds
Rs.1000000/-
Rs.130000/- plus 30% of the amount
by which the total income exceeds
Rs.1000000/-
RATES of IT – Individuals
(Senior Citizens: Age 60 & More)
1. Where the total income does
NIL
not exceed Rs.250000/2. Where the total income exceeds
10% of amount by which the total
Rs.250000/- but does not exceed
income exceeds Rs.250000/Rs.500000/3. Where the total income exceeds Rs.25000/- plus 20% of the
Rs.500000/- but does not exceed
amount by which the total
Rs.1000000income exceeds Rs.500000/-
Rs.125000/- plus 30% of the
4. Where the total income exceeds
amount by which the total
Rs.1000000/income exceeds Rs.1000000/-
RATES of IT – Individuals
(Senior Citizens: Age 80 & More)
1. Where the total income does not
NIL
exceed Rs.500000/-
2. Where the total income exceeds
Rs.500000/- but does not exceed
Rs.1000000/-
20% of the amount by which the
total income exceeds
Rs.500000/-
3. Where the total income exceeds
Rs.1000000/-
Rs.100000/- plus 30% of the
amount by which the total
income exceeds Rs.1000000/-
THANK YOU
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