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In Respect of exemptions, deduction etc Income Tax Act, 1961 imposes various threshold limit. Like in respect of Tax Rates or in respect of deduction under section 80C, 80D, 80U etc. Some of the Popular Limits are Tax Rates , Conveyance Allowance, HRA, Home Loan Interest, Deduction Under Section 80C, Leave Encashment, Gratuity, Medical Reimbursement etc.

Income Tax Act Specifies Threshold Limits for Ascertainment of Basic Exemption , For Various Allowance Available Under the Head Salary Income, House Property Income, For allow ability of Expenses against Business Income, Exemption Against Capital Gain, Calculation of Capital Gain, Deduction available under various section of Income Tax Act, 1961, TDS deductible, For Filing of Appeal, For Imposition of Penalty and Prosecution etc.

Various Threshold Limits under the Income Tax Act for Assessment Year 2024-25 / Financial year 2023-24

S.N.

Particulars Threshold Limits
A. Basic Exemption
1. Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person Rs. 2,50,000
2. Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year) Rs. 3,00,000
2A Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person who opted for new tax regime under Section 115BAC Rs. 3,00,000
3. Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen

(who is at least 80 Years of age at any time during the previous year)

Rs. 5,00,000
3A. Surcharge shall be charged at the rate of 10% of income-tax if net income is above Rs. 50 Lakh but it does not exceed Rs. 1 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)
Note: The surcharge rate is nil if the total income of a ‘specified fund’ as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).
Rs. 50 lakh
3B Surcharge shall be charged at the rate of 15% of income-tax if net income is above Rs. 1 crore but it does not exceed Rs. 2 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)

Note: The surcharge rate is nil if the total income of a ‘specified fund’ as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a)

Note: The surcharge rate is nil if the total income of a ‘specified fund’ as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a)

Rs. 1 Crore
3C Surcharge shall be charged at the rate of 25% of income-tax if net income is above Rs. 2 crore but it does not exceed Rs. 5 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)

Notes:

• The surcharge rates for AOP with all members as a company, cannot exceed 15%.

• The enhanced surcharge of 25% is not levied from income chargeable to tax under Section 111A, 112, 112A and 115AD . Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

The surcharge rate is nil if the total income of a ‘specified fund’ as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

Rs. 2 crore
3D Surcharge shall be charged at the rate of 37% of income-tax if net income is above Rs. 5 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)

Note:

• The surcharge rates for AOP with all members as a company, cannot exceed 15%.

• The enhanced surcharge of 37% is not levied from income chargeable to tax under Section 111A, 112, 112A and 115AD . Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

• The surcharge rate is nil if the total income of a ‘specified fund’ as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

• The enhanced surcharge of 37% is not levied if taxpayer has opted for new tax regime under Section 115BAC.

Rs. 5 crore
4. Surcharge shall be charged at the rate of 12% of income-tax if net income exceeds Rs. 1 Crore in case of Firms, Local Authorities (Subject to Marginal Relief) Rs. 1 Crore
4A. Surcharge shall be charged at the rate of 7% of income-tax if net income exceeds Rs. 1 Crore but doesn’t exceed Rs. 10 crore in case of co-operative society (Subject to Marginal Relief)
Note: The surcharge rate is 10% (without any threshold limit) if case co-operative society opted for tax regime under Section 115BAD or Section 115BAE.
Rs. 1 Crore
4B. Surcharge shall be charged at the rate of 12% of income-tax if net income exceeds Rs. 10 Crore in case of co-operative society (Subject to Marginal Relief)

Note: The surcharge rate is 10% (without any threshold limit) if case co-operative society opted for tax regime under Section 115BAD or 115BAE.

Rs. 10 Crore
5. Surcharge shall be charged at the rate of 7% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 12% if net income exceeds Rs. 10 Crores in case of domestic company (Subject to Marginal relief)

Note: The surcharge rate is 10% (without any threshold limit) if case domestic company opted for tax regime under Section 115BAA or 115BAB.;

Rs. 1 Crore / Rs. 10 Crore
6. Surcharge shall be charged at the rate of 2% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 5% if net income exceeds Rs. 10 Crores in case of foreign company (Subject to Marginal relief)

Note: The surcharge rate is 10% (without any threshold limit) if case domestic company opted for tax regime under Section 115BAA or 115BAB.

Rs. 1 Crore / Rs. 10 Crore
7. Tax rate of 25% in case of a domestic company where its total turnover or the gross receipt in the previous year 2021-22 does not exceed Rs. 400 crore Rs. 400 Crore

S.N.

Particulars Section Threshold Limits (for exemptions and others)
B. Under the head Salaries
1. Entertainment Allowance (Exempt in case of Government employee only) 16(ii) Least of the following is exempt from tax:

a) Rs 5,000

b) 1/5th of salary (excluding any allowance, benefit or perquisite)

c) Actual entertainment allowance received

2. Encashment of unutilized earned leave at the time of retirement by an employee (other than Government employee)(Subject to certain conditions) 10(10AA) Least of the following shall be exempt from tax:

a) Amount actually received

b) Unutilized earned leave** X Average monthly salary

c) 10 months Average Salary**

d) Rs. 3,00,000

*While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer

**Average salary = Average Salary*** of last 10 months immediately preceding the retirement

***Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission

3. Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947 (Subject to certain conditions). 10(10B) Least of the following shall be exempt from tax:

a) an amount calculated as per 25F(b) of the Industrial Disputes Act, 1947;

b) Rs. 5,00,000; or

c) Amount actually received.

4. Death -cum-Retirement Gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions). 10(10) Least of following amount is exempt from tax:

1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.

2. Rs. 20,00,000

3. Gratuity actually received.

*7 days in case of employee of seasonal establishment.

** Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite

5. Death -cum-Retirement Gratuity received by other employees who are not covered under Gratuity Act, 1972 (other than Government employee)(Subject to certain conditions). 10(10) Least of following amount is exempt from tax:

1. 1/2 X Average Salary* X Completed years of service

2. Rs. 20,00,000

3. Gratuity actually received.

*Average salary = Average Salary of last 10 months immediately preceding the month of retirement

**Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission

6. Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions 10(10C) Least of the following is exempt from tax:

1) Actual amount received as per the guidelines i.e. least of the following

(a) 3 months salary for each completed year of services

(b) Salary at the time of retirement X No. of months of services left for retirement; or

2) Rs. 5,00,000

7. Children Education Allowance 10(14) read with Rule 2BB Up to Rs. 100 per month per child up to a maximum of 2 children.
8. Hostel Expenditure Allowance 10(14) read with Rule 2BB Up to Rs. 300 per month per child up to a maximum of 2 children.
9. Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty 10(14) read with Rule 2BB Up to Rs. 3,200 per month for blind and handicapped employees
10. Transport Allowance to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance. Sec. 10(14) read with Rule 2BB Amount of exemption shall be lower of following:

a) 70% of such allowance; or

b) Rs. 10,000 per month.

11. Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions) 10(45) Up to Rs.14,000 per month for defraying the service of an orderly and for meeting expenses incurred to wards secretarial assistance an contract basis.
12. Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
13. Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
14. Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Odisha Sec. 10(14) read with Rule 2BB Up to Rs. 200 per month
15. Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Up to Rs. 2,600 per month
16. Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Up to Rs. 1,000 per month
17. Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Up to Rs. 3,900 per month
18. Underground Allowance to employees working in uncongenial, unnatural climate in underground mines (Subject to certain conditions) Sec. 10(14) read with Rule 2BB Up to Rs. 800 per month
19. High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)

b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)

20. Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Up to Rs. 4,200 per month
21. Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations) Sec. 10(14) read with Rule 2BB Up to Rs. 3,250 per month
22. Standard Deduction to salaried taxpayers or pensioners 16(ia) Up to Rs. 50,000
23. Tax on contribution to an approved superannuation fund by the employer in respect of the employee 17(2)(vii) To the extent it exceeds Rs.1,50,000 per year (not taxable if employer’s contribution is Rs. 1 lakh or less per year)
24. Expense incurred by employer on providing educational facility to the children of the employee shall be exempt in the hands of an employee Rule 3 Up to Rs.1,000 per month per child
25. Interest on loan received from employer at concessional rate of interest couldn’t be taxed as perquisite in the hands of the employee Rule 3 If aggregate amount of such loan during the relevant previous year does not exceed Rs.20,000
26. Free meal provided to employees during office hours by the employer couldn’t be taxed as perquisite in the hands of the employees Rule 3 If cost of such meal does not exceed Rs.50 per meal
27. Value of any gift received by the employee or by member of his household from employer is exempt in the hands of the employee Rule 3 Up to the extent of Rs.5,000 if received in kind

C.

Under the head Income from House Property
1. Standard deductions 24(a) 30% of annual value
2. Interest incurred on borrowed capital for construction/ acquisition of self-occupied house property (Subject to certain conditions)

Note:

With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 2,00,000.

24(b) Up to Rs. 2,00,000
3. Interest incurred on borrowed capital for re-construction, repair or renewal of self-occupied house property (Subject to certain conditions)

Note:

With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 30,000.

24(b) Up to Rs. 30,000

D.

Under the head Profits and Gains of Business or Profession
1. Deduction under section 32AC is available if actual cost of new plant and machinery acquired and installed by a manufacturing company after 31-03-2013 but before 01-04-2015 exceeds Rs. 25/100 Crores, as the case may be (Subject to certain conditions). 32AC 15% of actual cost of new asset acquired and installed (if it exceeds Rs. 25 Crores/100 Crores, as the case may be)
2. The agricultural extension project shall be considered for approval under section 35CCC if expenditure (not being expenditure in the nature of cost of any land or building) expected to be incurred on such project exceeds the threshold limit (Subject to certain conditions) Rule 6AAD read with section 35CCC Rs. 25,00,000
2A. If value adopted for stamp duty exceeds the consideration received on transfer of an immovable property, the stamp duty value shall be deemed to be the full value of consideration. 43CA However, if stamp duty value does not exceed 110% of the consideration received, the consideration so received shall be deemed to be the full value of consideration
3. Compulsory maintenance of prescribed books of account – Specified Profession (Subject to certain conditions and circumstances) 44AA Persons carrying on specified profession
4. Compulsory maintenance of books of account – Other business or profession

(Subject to certain conditions and circumstances)

44AA 1) If the total sales, turnover or gross receipts exceeds Rs 10,00,000 in any one of the three years immediately preceding the previous year; or

2) If the income from business or profession exceeds Rs 1,20,000 in any one of the three years immediately preceding the previous year.

Note: Individuals or HUFs shall be required to maintain books of account only when either their gross turnover/gross receipts exceed Rs 2,50,000 or their income from business or profession exceed Rs 2,50,000.

5. Compulsory Audit of books of accounts (Subject to certain conditions and circumstances) 44AB 1) If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business; or

2) If gross receipts exceeds Rs. 50 Lakhs in any previous year, in case of profession.

Note:

a) This section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD/44ADA.

b) Threshold limit of Rs. 1 crore shall be increased to Rs. 10 crore in case where the cash receipt and payment made during the year does not exceed 5% of total receipt or payment the business

6. Limit on payments in cash for expenses/ liability (Subject to certain conditions and exceptions) 40A(3) 1) Rs. 10,000 (total payment to a person in a day)

2) Rs. 35,000 (total payment to a person in a day) for payments made for plying, hiring or leasing of goods carriage.

7. Computation of income from eligible business on presumptive basis under Section 44AD (Subject to certain conditions). 44AD Presumptive income of eligible business shall be 8 % of gross receipt or total turnover (if turnover of eligible business does not exceed Rs. 2 crore).

Presumptive income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system or through such other electronic mode as may be prescribed

Note:If the amount of cash received during the previous year does not exceed 5% of the total turnover or gross receipt of such year then the threshold limit for total turnover shall be taken as Rs. 3 crore instead of Rs. 2 crore. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.

7A. Computation of income from eligible profession on presumptive basis under section 44ADA (Subject to conditions) 44ADA Presumptive income shall be or through such other electronic mode as may be prescribed 50% of total gross receipt if the total gross receipts from such profession do not exceed Rs. 50 lakh in a previous year.
Note:if the amount of cash received during the previous year does not exceed 5% of the total gross receipt of such year then the threshold limit for total gross receipt shall be taken as Rs. 75,00,000 instead of Rs. 50,00,000. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.
8. Presumptive income from business of plying, hiring or leasing of goods carriage if assessee does not own more than 10 goods carriage. 44AE For Heavy Goods Vehicle:

Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by assessee

For Other Goods Vehicle:

Rs. 7,500 for every month or part of a month during which the goods carriage is owned by assessee

Note: ‘Heavy goods vehicle’ means goods carriage vehicle the gross vehicle weight of which exceeds 12,000 kilograms.

9. Alternate Minimum Tax (in case of Individual, HUF, AOP or BOI)

(Subject to certain conditions)

115JC 18.5% of adjusted total income (plus surcharge and education cess) provided adjusted total income exceeds Rs. 20,00,000.

Note:

1) Rate of AMT is 9% in case of a unit located in an IFSC and derives income solely in convertible foreign exchange.

2) Rate of AMT is 15% in case of a co-operative society

10. Applicability of Domestic Transfer Pricing, if aggregate value of transactions with associated enterprises during the previous year exceeds the threshold limit 92BA Rs. 20 Crores
11. Every person who has entered into an international transaction or a specified domestic transaction shall keep and maintain the specified information and documents Rule 10D read with section 92D If aggregate value, as recorded in the books of account, of international transactions entered into by him exceeds Rs.1,00,00,000

E.

Under the head Income from Capital Gains
1 Share or interest (‘assets’) in a foreign company or entity shall be deemed to be situated in India, if such assets derives, directly or indirectly, its value substantially from the assets located in India. Provided the value of such assets, on the specified date, exceeds the prescribed limit. 9(1)(i) If the value of assets:

a) Exceeds Rs. 10 crores; and

b) Represents at least 50% of value of all assets owned by the company or entity.

1A. If value adopted for stamp duty exceeds the consideration received on transfer of an immovable property, the stamp duty value shall be deemed to be the full value of consideration. 50C However, if stamp duty value does not exceed 110% of the consideration received, the consideration so received shall be deemed to be the full value of consideration.
1B. Limit on the long-term capital gains arising from transfer of residential house property which shall be invested in two residential house properties in India. 54 A taxpayer has an option to make investment in two residential house properties in India. This option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. 2 crores.
1C. Limit on the cost of new asset purchased for the purpose of claiming exemption from long-term capital gains 54 Rs. 10 crore (the amount exceeding Rs. 10 crore shall not be taken into consideration while computing exemption)
1D. Limit on the cost of new asset purchased for the purpose of claiming exemption from long-term capital gains 54F Rs. 10 crore (the amount exceeding Rs. 10 crore shall not be taken into consideration while computing exemption)
2. Limit on investment made by an assessee in bonds of NHAI or REC etc., from long term capital gains arising from transfer of an immovable property (being Land or Building or both) during the financial year, for claiming exemption (Subject to certain conditions) 54EC Rs. 50,00,000 during the financial year in which immovable property is transferred and in subsequent financial year
3. Exemption from long-term capital gain if such gain is invested by an assessee in units of fund as may be notified by Central Government to finance start-ups. 54EE Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs.
4. Tax on long-term capital gains arising from transfer of an equity share, or a unit of an equity oriented fund or a unit of a business trust. 112A No tax if long-term capital gain doesn’t exceed Rs. 1,00,000

F.

Under the head Income from Other Sources
1. Gifts without consideration/ inadequate consideration from non-relatives (Subject to certain conditions) 56 Gift up to Rs. 50,000 is not chargeable to tax
2. Transfer of immovable property for inadequate consideration. 56 If stamp duty value exceeds higher of following amount:

a) Rs. 50,000; and

b) Amount equal to 10% of the consideration.

3. Sum received by a family member of a person who died due to Covid-19 56(2)(x) Sum received upto Rs. 10 lakh from any person (other than employer of the deceased) is not chargeable to tax
4. Standard Deduction for family pension 57(iia) 33.33% of Family Pension subject to maximum of Rs. 15,000

G.

Trust
1. Activity for advancement of any other object of general public utility shall be considered as charitable activity 2(15) If activity is undertaken in course of carrying out of object of general public utility and aggregate receipts from such activity do not exceed 25% of total receipts of financial year.
2. Anonymous donation to be taxed at the rate of 30% 115BBC To the extent it exceeds 5% of total donations received by assessee or Rs.1,00,000, whichever is higher
3. Annual receipts should not exceed the threshold limit for the purposes of claiming exemption under section 10(23C)(iiiad)/(iiiae) Rule 2BC Rs.1 Crore
4. Maximum amount which an electoral trust can spend for managing its affairs Rule 17CA 5% of the total contributions received in a year subject to an aggregate limit of Rs. 5,00,000 in the first year of incorporation and Rs.3,00,000 in subsequent year

H. Eligible Investment Funds

Section 9A provides that in the case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund (subject to certain conditions).

Conditions for an eligible investment fund

It further provides that an eligible investment fund shall not be said to be resident in India for the purpose of section 6 merely because the eligible fund manager, undertaking fund management activities on its behalf, is situated in India.

The offshore funds shall be required to fulfil the following conditions during the relevant year for being an eligible investment fund:

a) fund is not a person resident in India;

b) fund is a resident of a country with which double taxation avoidance agreement has been entered into;

c) aggregate participation or investment in the fund, directly or indirectly, by persons resident in India does not exceed 5% of the corpus of the fund;

Note: Any contribution made by eligible fund manager during first three years of operation of fund, which doesn’t exceed Rs, 25 crore, shall not be taken into account while calculating aggregating participation of investment in fund.;

d) fund and its activities are subject to applicable investor protection regulations in the country of its residence;

e) fund has a minimum of 25 members who are, directly or indirectly, not connected persons;

f) any member of the fund along with connected persons shall not have any participation interest, directly or indirectly, in the fund exceeding 10%;

g) aggregate participation interest, directly or indirectly, of ten or less members along with their connected persons in the fund, shall be less than fifty percent;

h) investment by the fund in an entity shall not exceed twenty percent of the corpus of the fund;

i) no investment shall be made by the fund in its associate entity;

j) the monthly average of the corpus of the fund shall not be less than 100 crores rupees and if the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than 100 crores rupees at the end of a period of six months from the last day of the month of its establishment or incorporation or at the end of the previous year which ever is earlier

k) fund shall not carry on or control and manage, directly or indirectly, any business in India or from India;

l) fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities undertaken by the eligible fund manager on its behalf;

m) remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken on its behalf is not less than the amount calculated is such manner as may be prescribed.

Conditions for an eligible fund manager

The following conditions shall be required to be satisfied by the person being the fund manager for being an eligible fund manager:

a) person is not an employee of the eligible investment fund or a connected person of the fund;

b) person is registered as a fund manager or investment advisor in accordance with the specified regulations;

c) person is acting in the ordinary course of his business as a fund manager;

d) person along with his connected persons shall not be entitled, directly or indirectly, to more than 25% of the profits accruing or arising to the eligible investment fund from the transactions carried out by the fund through such fund manager.

Note:

The Central Government, by notification, may relax above specified conditions in respect of an eligible investment fund and its eligible fund manager if such fund manager is located in IFSC (as defined in clause (a) of the Explanation to section 80LA) and has commenced its operation on or before 31-03-2024.

I.

Deductions under Chapter VI-A
1. Deduction to an individual and HUF for amount invested in following ways:

1. Life insurance premium for policy:

a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee

b) in case of HUF, on life of any member of the HUF

2. Sum paid under a contract for a deferred annuity:

a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)

b) in case of HUF, on life of any member of the HUF

3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]

4. Contributions by an individual made under Employees’ Provident Fund Scheme

5. Contribution to Public Provident Fund Account in the name of:

a) in case of individual, such individual or his spouse or any child of such individual

b) in case of HUF, any member thereof

6. Contribution by an employee to a recognized provident fund

7. Contribution by an employee to an approved superannuation fund

8. Subscription to any notified security or notified deposit scheme of the Central Government

For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction.

Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.

9. Subscription to notified savings certificates[National Savings Certificates(VIII Issue)]

10. Contribution for participation in unit-linked Insurance Plan of UTI:

a) in case of an individual, in the name of the individual, his spouse or any child of such individual

b) in case of a HUF, in the name of any member thereof

11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund:

a) in the case of an individual, in the name of the individual, his spouse or any child of such individual

b) in the case of a HUF, in the name of any member thereof

12. Subscription to notified deposit scheme or notified pension fund setup by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]

13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children

14. Certain payments for purchase/construction of residential house property

15. Subscription to notified schemes of(a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b)authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both

16. Sum paid towards notified annuity plan of LIC or other insurer

17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)

18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)

19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions

20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above.

21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.

22. Subscription to notified bonds issued by the NABARD.

23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)

24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)

25. Contribution to specified account of pension scheme referred to in section 80CCD in case of central Government employee

80C Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))
2. Contribution to certain specified Pension Funds of LIC/other insurer by an Individual (Subject to certain conditions). 80CCC Up to 1,00,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))
3. Contribution to notified Pension Scheme (NPS) by an Individual (Subject to certain conditions).

Note:-

1. Deduction under section 80CCD(2) on account of contribution made by the employer to a pension scheme is not subjected to ceiling limit of Rs. 1,50,000 as provided under section 80CCE.

2. Addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under section 80CCD(1), i.e., limit of 10% of salary/gross total income

80CCD Amount contributed to pension scheme or 10% of salary/gross total income*, whichever is less (subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE) shall be allowed as deduction under section 80CCD(1).

Additional deduction to the extent of Rs. 50,000 shall also be available to the assessee under section 80CCD(1B). The additional deduction is not subjected to ceiling limit of Rs. 1,50,000 as provided under section 80CCE.

Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 14% of salary if contribution is made by Central/State Government and 10% of salary in case of others.

*10% or 14% as the case may be, of salary in case of employees otherwise 20% of gross total income.

3A. Amount contributed to Agnipath Scheme 80CCH Contribution made by assessee and Contribution made by the Central Government to the Agniveer Corpus Fund.
4. Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person*. An individual can also made payment to the Central Government health scheme and/or on account of preventive health check-up.

*specified person means

– In case of Individual- Self, Spouse, dependent children or parents

– In case of HUF- Any member thereof

Note:-

1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000.

2. Payment on account of preventive health check-up may be made in cash.

3. Within overall limit, deduction shall also be allowed upto Rs. 50,000 towards medical expenditure incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person.

4. “Senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

80D In case of Individual, amount paid:

a) For self, spouse and dependent children: Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen)

b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 50,000 if parent is a senior citizen)

In case of HUF, premium up to Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen) paid to insure any member of the family.

5. Deduction allowed to resident Individual and HUF for:

a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability

b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability

(Subject to certain conditions).

80DD Rs. 75,000 (Rs. 1,25,000 in case of severe disability)
6. Expenses actually paid by resident individual and HUF for medical treatment of specified diseases and ailments of:

a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters

b) In case of HUF: Any member of the family who is wholly dependent upon the family

(Subject to certain conditions).

80DDB Up to Rs. 40,000 (Rs. 1,00,000 in case of senior citizen)
7. Interest payable on loan taken up to Rs. 35 lakhs by an individual taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value does not exceed Rs. 50 lakhs (Subject to certain conditions). 80EEA Deduction of up to Rs.50,000 towards interest on loan.
8. Interest payable on loan taken by an individual taxpayer, who is not eligible to claim deduction under 80EE, from any financial institution, sanctioned during the period beginning on 01-04-2019 and ending on the 31-03-2022; for the purpose of acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs (Subject to certain conditions). 80EEA Deduction up to Rs.1,50,000 towards interest on loan.
8A. Interest payable on loan taken by an individual taxpayer from any financial institution, sanctioned during the period beginning on 01-04-2019 and ending on the 31-03-2023; for the purpose of purchase of an electric vehicle (Subject to certain conditions). 80EEB Deduction up to Rs.1,50,000 towards interest on loan.
9. Rent paid by an individual for furnished/unfurnished residential accommodation if he is not receiving any HRA (Subject to certain conditions) 80GG Least of the following shall be exempt from tax:

a) Rent paid in excess of 10% of total income*;

b) 25% of the Total Income; or

c) Rs. 5,000 per month.

Total Income = Gross total income minus capital gains, short term capital gains under section 111A, deductions under section 80C to 80U (other than 80GG) and income under section 115A

10. Deduction in respect of certain donations for scientific, social or statistical research or rural development programme or for carrying out an eligible project or National Urban Poverty Eradication Fund shall be allowed (Subject to certain conditions) 80GGA 100% of donations or contributions made.

No deduction shall be allowed if contribution is paid in cash in excess of Rs.10,000

10A. Deduction from profit and gains derived by an eligible start-up from a business involving innovation, development, deployment or commercialization of new products, process or services driven by technology or intellectual property rights. Deduction in respect of eligible start-up (subject to certain conditions)

Eligible start-up means a company or a limited liability partnership, incorporated on or after 1/4/2016 but before 1/4/2023 and holds a certificate from Inter-Ministerial Board of Certification.

80-IAC 100% deduction is available for any 3 consecutive assessment years out of 10 years beginning from the year in which the eligible start-up is incorporated.

However, total turnover of eligible start-up should not exceed Rs. 100 Crore in previous year in which deduction under section 80-IAC is claimed.

10B. Deductions in respect of profits and gains arising from housing projects 80-IBA Deduction of 100% of the profits and gains derived by assessee from the business of developing and building affordable housing projects.
11. Royalty income of resident individual – authors of certain specified category of books other than text books 80QQB Least of the following shall be exempt from tax:

a) In case of Lump sum payment – Amount of royalty income subject to maximum of Rs. 3,00,000

b) In other cases – amount of such income subject to maximum of 15% of value of books sold during the previous year.

12. Royalty in respect of patents registered on or after 01.04.2003 earned by resident individual (subject to certain conditions) 80RRB 100% of royalty subject to maximum of Rs. 3,00,000
13. Interest on deposits in saving account of an Individual or HUF (except senior citizen) with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions) 80TTA 100% of amount of such income subject to maximum of Rs. 10,000
14. Interest on deposit in saving/fixed account of an senior citizen with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions) 80TTB 100% of amount of such income subject to maximum of Rs. 50,000
15. A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995] 80U Rs. 75,000 (Rs. 1,25,000 in case of severe disability)
16. Maximum amount of deduction available to specified co-operative societies if it is engaged in activities in addition to the prescribed activities (Subject to certain conditions) 80P Rs.1,00,000 in case of consumer co-operative society or Rs.50,000 in any other case
17. Deduction available to a co-operative society, (not being a housing society or an urban consumers’ society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power,) in respect of income by way of interest on securities or any income from house property 80P If its gross total income does not exceed Rs.20,000
18. Producer company engaged in an eligible business of marketing, purchase or processing of agricultural produce of its members 80PA 100% of profits for a period of 5 years from the financial year 2018-19 subject to the condition that the total turnover of company shall be less than Rs. 100 crores during the financial year.

J.

Deduction of tax at source and Advance tax
1. No deduction of tax at source from salaries 192 If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens)
1A No TDS from payment of provident fund account of an employee 192A If amount paid is less than Rs. 50,000.
2. No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF 193 If amount paid or payable during the financial year does not exceed Rs. 5,000
3. No TDS from interest on 8% Saving (Taxable) Bonds 2003 and 7.75% Savings (Taxable) Bonds, 2018 paid to a resident persons 193 If amount paid or payable during the financial year does not exceed Rs. 10,000
3A. No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual 193 If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year
4. No TDS from dividend paid by any mode other than cash to resident persons 194 If amount paid or payable during the financial year does not exceed Rs. 5,000
5. No TDS from interest (other than on interest on securities) paid by a banking company, co-operative bank or specified public company on time deposits

Note:

With effect from 01.06.2015, tax shall be deducted from interest credited or paid by a co-operative bank to its member

194A If amount paid or payable during the financial year does not exceed Rs. 40,000 (Rs. 50,000 in case of Senior Citizens)

Note:

a) With effect from 01.06.2015, time deposit shall also include recurring deposit. Therefore, tax shall be deduction from payment of interest on recurring deposit if it exceeds the threshold limit of Rs. 40,000/50,000.

b) The threshold limit of Rs. 40,000/50,000 shall be computed with reference to the income credited or paid by a banking company or co-operative bank (and not by individual branch thereof) which has adopted core banking solutions (‘CBS’).

6. No TDS from payment of interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004 194A If amount paid or payable during the financial year does not exceed Rs. 50,000
7. No TDS from interest other than on securities (in any other case) 194A If amount paid or payable during the financial year does not exceed Rs. 5,000
8. No TDS from interest on compensation awarded by payment of Motor Accident Claims Tribunal 194A If amount paid during the financial year does not exceed Rs. 50,000

Note:

With effect from 01.06.2015, no tax shall be deducted at the time of credit of interest on compensation awarded by the Motor Accidents Claims Tribunal.

9. No TDS from Lottery, Cross Word Puzzles, card game, gambling, or betting of any form or nature 194B If amount paid or payable (in aggregate) during the financial year does not exceed Rs. 10,000
10. No TDS from winnings from horse races 194BB If amount paid or payable (in aggregate) during the financial year does not exceed Rs. 10,000
11. No TDS from sum paid or payable to contractor 194C a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000

b) If sum paid or payable to contractor in aggregate does not exceed Rs. 1,00,000 during the financial year

12. No TDS from insurance commission paid or payable during the financial year 194D If amount paid or payable during the financial year does not exceed Rs. 15,000
12A No TDS on the amount of income comprised in sum payable under a life insurance a police (including bonus) to a resident person 194DA If amount paid or payable during the financial year does not exceed Rs. 1 lakh
13. No TDS from payments made out of deposits under NSS 194EE If amount paid or payable during the financial year does not exceed Rs. 2,500
14. No TDS from commission paid on lottery tickets 194G If amount paid or payable during the financial year does not exceed Rs. 15,000
15. No TDS from payment of commission or brokerage 194H If amount paid or payable during the financial year does not exceed Rs. 15,000. Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees.
16. No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery 194-I If amount paid or payable during the financial year does not exceed Rs. 2,40,000
17. No TDS from payment of consideration for purchase of an immovable property (other than agriculture land) 194-IA If consideration of immovable property and its stamp duty value doesn’t exceed Rs. 50,00,000
17A. No TDS from payment of rent in respect of any land or building.

Note:

Other than the rent covered by section 194-I

194-IB If amount paid or payable during the financial year does not exceed Rs. 50,000
18. No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration 194J If amount paid or payable during the financial year does not exceed Rs. 30,000
19. No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land) 194LA If amount paid or payable during the financial year does not exceed Rs. 2.50 lakh
19A. No obligation to deduct tax by an Individual or HUF (other than those who are required to deduct income-tax as per the provisions of section 194C, section 194H or section 194J) responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section 194D) or brokerage or by way of fees for professional services. 194M If aggregate of sum paid or credited during a financial year does not exceed Rs. 50 lakh.
19B. No obligation to deduct tax by a banking company, co-operative bank or a post office on cash withdrawal made by a person. 194N If aggregate of amount of cash withdrawal during the financial year from one or more account does not exceed Rs. 1 crore/20 lakhs (as the case may be).
Note: the threshold limit of Rs. 1 crore is increased to Rs. 3 crores for the deduction of tax under Section 194N from the withdrawal of cash made by co-operative society.
19C. No TDS from payment to participants of e-commerce 194-O If amount paid or payable to resident Individual or HUF during the financial year does not exceed Rs. 5 Lakhs
19D. No TDS from payment made to resident seller 194Q If amount paid or payable to resident seller for purchase of goods during the Financial Year if aggregate value of goods doesn’t exceed Rs. 50 lakhs
19E. No TDS in case any benefit or perquisite is provided to a resident 194R If aggregate value of benefit/perquisite provided during the Financial Year doesn’t exceed Rs. 20,000
19F. No TDS from payment on transfer of Virtual Digital Asset 194S No tax shall be deducted under this provision in the following circumstance:

• If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year.

• If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means:

(a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred;

(b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.

20. Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax 206A If amount paid or payable during the financial year does not exceed:

a) Rs.40,000 where payer is banking company or co-operative society;

b) Rs.5,000 in other case

21. Every person being a seller who receives any amount as consideration for sale of motor vehicle shall collect tax at source at the rate of 1% of sale consideration. 206C If sale value of motor vehicle exceeds Rs. 10,00,000
21A. Remittance under Liberalized Remittance Scheme 206C(1G) Amount remitted by a buyer during a financial year is less than Rs. 7 lakh and it is for the purpose of education or medical treatment
21B. Sale of Goods 206C(1H) If the aggregate value of sale in any previous year exceeds Rs. 50 lakhs
22. A person (not being a banking company) carrying on any business or profession in India may file an application for certificate authorizing receipt of interest and other sums without deduction of tax under section 195 (Subject to certain conditions). Rule 29B If he has been carrying on business or profession in India continuously for a period of not less than 5 years immediately preceding the date of the application and the value of the fixed assets in India of such business or profession as shown in his relevant books for the earlier year exceeds Rs.50,00,000
23. Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish information. Rule 37BB In Part A of Form No. 15CA if the amount of payment doesn’t exceed Rs. 5,00,000 in aggregate during the financial year

In Part B of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate under section 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.

In Part C of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate in Form No. 15CB has been obtained from a Chartered Accountant.

23A. Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum not chargeable to tax under the provisions of the Act, shall furnish information. Rule 37BB In Part D of Form No. 15CA. However, there is no reporting requirement in following cases:-

i) If payment is made by an individual and it is permissible under Liberalized Remittance Scheme.

ii) If remittance is covered under the Specified list

24. Liability for payment of advance tax 208 Taxpayer is liable to pay advance-tax if his advance tax liability exceeds Rs. 10,000

K. Filing of Return and Assessment
1. Every person being an Individual, HUF, AOP, BOI or AJP shall be required to file return of income if his total income before claiming exemption or deduction under 10(38), 10A, 10B, 10BA, 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB or Chapter VI-A, exceeds maximum exemption limit. 139 read with Rule 12 Maximum exemption limit is as follows:-

1. In case of super senior citizen – Rs. 5,00,000

2. In case of senior citizen – Rs. 3,00,000

3. In case of any other person– Rs. 2,50,000

2. Issue of notice under section 148 to re-open assessment within 3 years from the end of the relevant assessment year 149 If escaped income is less than Rs. 50 lakh
3. Issue of notice under section 148 to re-open assessment within 10 years from the end of the relevant assessment year 149 If escaped income is Rs. 50 lakh or more
4 The president or any other members of ITAT may dispose of any case which has been allotted to the Bench of which he is a member and which pertains to an assessee whose total income as computed by the AO does not exceed the prescribed sum. 255 Rs. 50,00,000

L. Penalties
1. Penalty for failure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3) 234E Rs. 200 for every day during which failure continues but not exceeding tax deductible / collectible
2. Penalty for failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA 271A Rs. 25,000
3. Reporting entity of international group (as referred to in Section 286) fails to furnish information and documents in accordance with provisions of Section 92D. 271AA(2) Rs. 5,00,000/-
3A. Income determined by AO or CIT(A) includes any income referred to in sections 68 to 69D if such income is not included by assessee in his return of income or tax in accordance with section 115BBE has not been paid 271AAC 10% of tax payable under section 115BBE
3B. Penalty, if during any proceedings under the Act, it is found that in the books of accounts maintained by assessee, there is:

a) A false entry; or

b) Any entry relevant for computation of total income of such person has been omitted to evade tax liability.

271AAD 100% of such false entries or omitted entry
3C. Violation of the provisions of 21st proviso to section 10(23C) or section 13(1)(c) pertaining to passing of unreasonable benefits to trustees or specified person 271AAE (a) For the first violation: to the extent of income applied by the institution for the benefit of any interested party referred to in section 13(3);

(b) For any violation in subsequent years: twice the amount of such income so applied (“double penalty”).

4. Penalty for failure to get accounts audited or furnishing a report of audit as required under section 44AB 271B One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, whichever is less
5. Penalty for failure to furnish a report from an accountant as required by section 92E 271BA Rs. 1,00,000
5A. Penalty to be levied if a person received an amount of Rs. 3 lakh or more otherwise than by an account payee cheque or bank draft or use of electronic clearing system 271DA Amount of such receipt
6. Penalty for not providing facility for accepting payment through prescribed electronic modes of payment by a person carrying on business if total sales, turnover or gross receipts from business exceeds Rs. 50 crore. 271DB Rs. 5,000 rupees for every day of default
7. Penalty for failure to furnish statement of financial transactions or reportable account as required under section 285BA(1) 271FA Rs. 500 per day of

Default

8. Penalty for failure to furnish statement of financial transactions or reportable account within the period specified in notice issued under Section 285BA(5) 271FA Rs. 1,000 per day of default
8A. Penalty for furnishing inaccurate particulars in Statement of financial transactions or reportable account. 271FAA Rs. 50,000
8B. Penalty for furnishing of inaccurate information by reporting financial institution and such inaccuracy is due to false or inaccurate information submitted by the holder of reportable accounts 271FAA Rs, 5,000 for every inaccurate reportable account
9. Penalty to be levied if Investment Fund failed to furnish a statement or information or document as required under Section 9A(5) 271FAB Rs. 5,00,000
10. If shares of a foreign company derives its value substantially from assets located in India, and such company holds such assets in India through an Indian concern, then, such Indian concern shall furnish the prescribed information to the tax authority in accordance with Section 285A. In case of failure, penalty shall be levied. 271GA a) 2% of value of transaction, if such transaction results in transferring right of mgmt. or control in relation to Indian concern;

b) Rs. 5,00,000 in any other case

10A. Failure to furnish report in respect of international group as referred to in section 286(2) 271GB(1) Rs. 5,000 per day (If period of failure is up to 30 days)

Rs. 15,000 per day (if period of failure continues beyond 30 days)

10B. If any reporting entity referred to in Section 286 fails to produce the information and documents within the prescribed period 271GB(2) Rs. 5,000 for every day during which the failure continues.
10C. If failure [as referred to in aforesaid cases] continues after order has been served directing entity to pay the penalty 271GB(3) Rs. 50,000 for every day for which such failure continues beginning from the date of serving such order.
10D. If reporting entity provides inaccurate information in the report furnished under Section 286(2) 271GB(4) Rs. 5,00,000
11. Penalty for failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement 271H Rs. 10,000 but may extend to Rs.1,00,000
12. Penalty shall be levied if a person fails to furnish or furnishes inaccurate information in Form 15CA & 15CB as required under Section 195(6). 271-I Rs. 1,00,000
12A. Penalty shall be levied if an accountant or a merchant banker or a registered valuer has furnished incorrect information in any report or certificate. 271J Rs. 10,000 for each incorrect report or certificate
12B. Penalty of default in submission of statement/certificate prescribed under section 35/Section 80G 271K Rs. 10,000 to Rs. 1 lakh
13. Penalty for refusal or failure to :

a) answer questions

b) sign statement

c) attend to give evidence or produce books of account, etc., incompliance with summons under section 131(1)

d) comply with notice u/s 142(1)/143(2) or failure to comply with direction issued u/s 142(2A)

272A(1) Rs. 10,000 for each failure/default
14. Penalty for failure to:

a) furnish requisite information in respect of securities as required under section 94(6);

b) give notice of discontinuance of business or profession as required under section 176(3);

c) furnish in due time returns, statements or certificates, deliver declaration, allow inspection, etc., under sections 133, 134, 139(4A),139(4C), 192(2C), 197A, 200(2A), 203, 206,206C, 206C(3A), 206C(1A) and 285B;

d) deduct and pay tax under section226(2)

e) file a copy of the prescribed statement within the time specified in section 200(3) or the proviso to section 206C(3) (up to 1-7-2012)

f) file the prescribed statement within the time specified in section206A(1)

272A(2) Rs. 500 for every day during whichthe failure continues
15. Penalty for failure to comply with section 133B 272AA(1) Not exceeding Rs. 1,000
16. Penalty in case of default in complying with the provisions of section 139A relating to PAN or Aadhar, i.e., failure to obtain, quote, or authenticate PAN or Aadhar, as the case may be.

The Finance (No. 2) Act, 2019 has provided for interchangeability of Aadhar with PAN. Hence, consequential amendments have been made in penal provisions also.

272B Rs. 10,000 per default
17. Penalty for failure to comply with section 203A 272BB(1) Rs. 10,000 for each failure/default
18. Penalty for quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2) 272BB(1A) Rs. 10,000
19. Income-tax officer can impose penalty only with the prior approval of Joint Commissioner 274 If amount of penalty exceeds Rs. 10,000
20. Assistant Commissioner or Deputy Commissioner can impose penalty only with the prior approval of Joint Commissioner 274 If amount of penalty exceeds Rs. 20,000
21. Commissioner or Principal Commissioner can reduce or waive penalty only with the previous approval of Principal Chief Commissioner or Chief Commissioner or Principal Director-General or Director-General 273A If amount of penalty exceeds Rs. 1,00,000

M.

Prosecution
1. Prosecution of 6 months to 7 years with fine for willful attempt to evade tax, penalty or interest or under reporting of income 276C(1) If tax sought to be evaded exceeds Rs. 25 Lakhs
2. Prosecution of 6 months to 7 years with fine for willful failure to furnish return of income under section 139(1), or furnish return of income under section 139(8A) or, in response to notice under section 142(1)(i) or section 148 or section 153A 276CC If tax sought to be evaded exceeds Rs. 25 Lakhs
3. Prosecution of 6 months to 7 years with fine for furnishing false statement in verification or delivery of false account, etc. 277 If tax sought to be evaded exceeds Rs. 25 Lakhs
4. Prosecution of 6 months to 7 years with fine for abetment of false return, account, statement or declaration relating to any income chargeable to tax 278 If tax sought to be evaded exceeds Rs. 25 Lakhs

N.

Fees
1. Fees for failure to furnish return of income within the time prescribed under section 139(1) 234F Rs. 5,000 if return is furnished after due date specified under section 139(1). However if the total income of the person does not exceed Rs. 5 lakhs then Rs. 1,000 shall be the late filing fees.
2. Fee for default in submission of statement/certificate prescribed under section 35/Section 80G 234G Rs. 200 per day
2A. Fee for default in intimating the Aadhaar Number 234H a) Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and

b) Rs. 1,000, in all other cases.

3. Fees for filing of appeal before CIT(A)/JCIT(A) 249 a) Rs.250 if total income as computed by AO is up to Rs. 1 lakh

b) Rs. 500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs

c) Rs.1,000 if total income as computed by AO is more than Rs. 2 lakhs

d) Rs.250 in any other case

4. Fees for filing of appeal before ITATCIT(A) 253 a) Rs.500 if total income as computed by AO is up to Rs. 1 lakh

b) Rs.1,500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs

c) 1% of assessed income subject to maximum of Rs. 10,000 if total income as computed by AO is more than Rs. 2 lakhs

d) Rs. 500 in any other case

5. Fees for filing of application before CIT for revision of order under section 264 264 Rs.500
6. Fees for filing application for advance ruling 245Q Rs.10,000 on such fees as may be prescribed, whichever is higher
7. Fees for filing application before settlement commission Rule 44C Rs. 500

O.

PAN
1. Every person carrying on any business or profession to apply for PAN if total sales, turnover or gross receipts in any previous exceeds the threshold limit 139A Rs.5,00,000
1A. Every non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds the threshold limit.

Note:

1) Persons associated with non-individual resident persons means the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the non-individual resident persons or any person competent to act on behalf of such persons.

2) The last date to apply for PAN shall be 31st May of next Financial Year in which financial transactions are entered into.

139A Rs. 2,50,000
2. Certain transaction in which quoting of PAN is mandatory. Section 139A read with Rule 114B a) Sale or purchase of any immovable property valued at Rs. 10 lakhs or more

b) A time deposit with a bank/Nidhi company/NBFC exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year

c) A time deposit with Post Office exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year

d) A contract of a value exceeding Rs. 1 lakh for sale or purchase of securities

e) Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange of an amount exceeding Rs. 1,00,000 per transaction.

f) Payment to hotels and restaurants against their bills for an amount exceeding Rs. 50,000 at any one time

g) Payment in cash for purchase of bank draft or pay orders or banker’s cheque for an amount Rs. 50,000 or more during any one day

h) Deposit in cash aggregating Rs. 50,000 or more during one day with a bank

i) Payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 50,000 at any one time

j) Payment in cash for purchase of any foreign currency of an amount exceeding Rs. 50,000 at any one time.

k) Payment of an amount of Rs. 50,000 or more to a Mutual Fund for purchase of units or to a company for acquiring shares or debentures or bonds issued by it

l) Payment of an amount of Rs. 50,000 or more to RBI for acquiring bonds issued by it

m) Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than Rs. 50,000 in a financial year for one or more pre-paid payment instruments issued by RBI to a banking company or a co-operative bank or to any other company or institution.

n) Payment of an amount of Rs. 50,000 or more in a year as life insurance premium to an insurer

o) Payment for sale or purchase of goods or services of any nature (other than those specified above in Point No. (a)to(n)) of an amount exceeding Rs. 2,00,000 per transaction.

P.

Others Provisions
1. Restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect Rule 48K If value of property exceeds:

1. Rs. 75,00,000 if immovable property is comprised within in area of Greater Bombay

2. Rs. 50,00,000 if immovable property is comprised within in area of Union territory of Delhi

3. Rs. 25,00,000 if immovable property is comprised within in area of Calcutta Metropolitan Area and Madras Metropolitan Planning Area

4. Rs. 25,00,000 if immovable property is comprised within in area of Bangalore Metropolitan Region and the areas declared as Ahmedabad Urban Development Area and the areas comprised in the city of Ahmedabad

5. Rs. 25,00,000 if immovable property is comprised within in area of Pune

6. Rs. 20,00,000 if immovable property is comprised within in areas other than those mentioned above and notified vide SO 339(E), dated 8th May, 1989; SO 53(E), dated 19th January, 1990 and SO 180(E), dated 14th March, 1991

7. Rs. 10,00,000 if the agreement for transfer is entered into, on or before the 31-07-1995

2. No restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect 269UC If value of property does not exceed Rs. 5,00,000
3. Transfer of any asset except stock-in-trade, without obtaining the permission of assessing officer, in favour of any other person during the pendency of any proceeding under the act of which notice is served on the assessee to be considered as void 281 If amount of tax or other sum payable or likely to be payable exceeds Rs. 5,000 or value of asset transferred exceeds 10,000
4. Submission of statements by producers of cinematograph films or person engaged in specified activity within prescribed period 285B Reporting of all payments made by him or due from him to each such persons as is engaged by him in such production which exceeds Rs. 50,000
5. No statement is required to be furnished to the registrar in respect of transfer of immovable property 269P If apparent consideration for such property doesn’t exceedRs.50,000
6. Limit on accepting loan or deposit or any specified sum otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions) 269SS Rs. 20,000 in aggregate
6A. Limit on receiving any amount otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions) 269ST Rs. 2,00,000 or more in aggregate from a person in a day
7. Limit on repayment of loan or deposit or any specified advance received by it, otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions) 269T Rs. 20,000 in aggregate
8. Rebate to resident individual whose total income does not exceed Rs. 5,00,000 87A Tax payable subject to maximum of Rs. 12,500
9. Rebate to resident individual (opted for Section 115BAC), whose total income does not exceed Rs. 7,00,000 87A Tax payable subject to maximum of Rs. 25,000
10. Income of minor child clubbed under Section 64(1A) with parent’s income. 10(32) Rs. 1,500 per child or Income of Minor, whichever is lower

[As amended by Finance Act, 2023]

(Republished with Amendment, Source -Income Tax Website)

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44 Comments

  1. CA Nikhil Bhoot says:

    Great efforts, think needs a minor correction , the Fees for Filing CIT(A) mentioned twice as the second one if fees for filing appeals before the Hon’ble ITAT.

  2. A KRISHNA MOHAN says:

    Hi I am getting Rs.3600 per month in the name of Fixed convenience allowance. I am a marketing employee. Is this amount is taxable or not for the
    FY 2018-19 // Assessment Yr 2019-20

  3. maheshwari says:

    No audit required if turnover of business upto 2 crore
    (in case of all business with digital/cheque transactions) or only for those who opt for 44AD?

  4. CA. M. Lakshmanan says:

    Restriction of immovable property without prior agreement (rule 48K) – whether it is still applicable since the Appropriate Authority is no longer there in statute?

  5. Balakrishnan Nair says:

    this ready reference would have been more complete if the tax rate of firms,co-op. societies ,companies also had been included.Good work ,APPRECIATED.

  6. Rajesh says:

    ax rate of 25% in case of a domestic company where its total turnover or the gross receipt in the previous year 2016-17 does not exceed Rs. 250 crore (Subject to Marginal Relief)
    The Above Point is Applicable for Newly Incorporated Company in FY 2018-19?

  7. RAJ NARAYAN SINGH says:

    I had received compensation from bank for delayed crediting of family pension of mother. Is it tax free or where I should deduct under IT return of salary people.

  8. spriyansang says:

    good morning sir/ madam

    i have one doubt about the Travelling allowance exemption in income tax deduction for the AY 2018-19, pls clarify..

    A government servant has received Travelling allowance Rs.800/- per month( per year 9600) further DA on TA has also been claimed by the same government servant Rs.1000/- per month (12,000/-)

    what is the TA exemption from income?

    whether the DA on TA is exempted from the income of the government servant ?

  9. INDRASINH ATALIYA says:

    point 23 Super annuation
    To the extent it exceeds Rs.1,50,000 per year (not taxable if employer’s contribution is Rs. 1.5 lakh or less per year)

  10. Uday Karandikar says:

    I am a son of Farmer. My father due to old age can not carry out the agri-operations. I am undertaking the operations. My name is not entered in the records of rights (7-12 extract). Shall I get exemption in the Income Tax

  11. Sushil Kumar says:

    I am the Karta of a HUF. One of my adult daughters, now an NRI, was a member of this HUF. What will be her status now? Will she continue to be a member the HUF? Can the Karta open a PPF A/C in her name in India?

  12. K N V S DUTT says:

    Please let me know the computation of income tax/capital gains tax on shares and securities, when the sale and purchases are of a continuous process and how to calculate short term gains and long term gains. Reckoning of a year from the date of purchase.

  13. Ramakrishnan Iyer says:

    Both myself and my wife were diagonised Lymphoma and Breast Cancer respectively and we have incurred heave medical expenses during the current financial year. Please let us know whether any deduction towards the medical expenses incurred by us is allowed for reduction while filing the returns

  14. S. Seshadri, Retd Govt Servant says:

    It is not clear as to how to compute the tax liability when the total income clubbed with “long term capital gains” marginally exceeds the threshold limit of tax exemption of an individual during the assessment year 2016-17. The threshold limit absorbs a certain amount of “Income on long term capital Gains” yet leaving a balance. The clarity is very much lacking. Pl enlighten me on this.

  15. M.P.SELVAM says:

    VERY GOOD INFORMATION
    I have invested a sum of Rs100000 in insurance and the same is maturing during march 2015 and therefore I want to know which amount should be shown as income.

    M.P.SELVAM . MUMBAI.

  16. sankar says:

    If a doctor is earning a profit of Rs.2 crores then his turnover must be around Rs.10 crores. which means 20% profit. Then he can consider reducing his fees or doing free consultancy for poor people

  17. Prashant Gupta says:

    Dear Dr. Surender Bhardwaj,
    There is no such exemption, your clinic income will be fully taxable, how ever if you builds and operate any hospital with a least hundred beds for patient. then all expenses other than the value of land shall be allowed to you as deduction during the first year of operation of hospital.

  18. Dr. Surender Bhardwaj says:

    If a doctor’s profit from clinic is 2 crore rupees in a financial year, & out of which he invests rupees 1.75 crore rupees for purchasing land/plot for estabalishing/constructing new/another clinic in the same financial year; Then in this case there will be any tax exemption on this 1.75 crore rupees or else he has to pay income tax on this 1.75 crore rupees also.

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