c



  
ccc  c

 !"

 
 

#$%&%$'()*+%#$'#$%&%$,$!(-%).*//01%(2%0#03,4/0#/* 0$.03#$%&%$'()

If total Income upto Rs.1,60,000 NIL

On next 3,40,000 10%

On next 3,00,000 20%

On Balance amount 30%

,/%$,#250-(#6,)0527,(8,039.,(4/

If total income is upto Rs.1,90,000 NIL

On next Rs.3,10,000 10%

On next Rs.3,00,000 20%

On Balance amount 30%

,/%$,#2%#$%&%$'()0327,(8,039.,(4/04-04,

If total income is upto Rs.2,40,000 NIL

On next Rs.2,60,000 10%

On next Rs.3,00,000 20%

On Balance amount 30%

No surcharge is applicable for individual, HUF, AOP, BOI and partnership firm. Domestic Company has to
pay surcharge @ 7.5% if total income is exceeding Î100 lakhs and foreign company has to pay surcharge
@ 2.5% if total income is exceeding Î100 lakhs

 ratuity exemption limit has been increased from 3.5 lakh to 10 lakh. wef 24-05-2010(Section 10(10))

 In case of RPF, interest upto 9.5% p.a. is exempt but wef 01-09-2010, interest upto 8.5% p.a. is
exempt.
 In case of donation for scientific research, deduction shall be allowed for 1.75 times of donation given
and in case of approved research by a company, deduction allowed shall be 2 times instead of 1.5 times.
(Section 35).

9 In case of payments within India to the residents, TDS amount can be given to the ovt. upto the last
date of filing of return of income (Section 40(a)).

  Under section 44AB limit for audit has been enhanced to Î60 lakhs in business and Î15 lakhs in
profession.

 Section 44AF has been merged in 44AD and presumptive income in case of business also shall be 8%
and further section 44AD shall not be applicable in case of company and limited liability partnership
firm. And also the assessee should not claim deduction under any of the sections 10A, 10AA, 10B, 10BA
or deduction under any provisions of Chapter VIA under the heading ͞C. - Deductions in respect of
certain incomes͟ in the relevant assessment year i.e. the following deductions should not be taken.-
Section 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, 80-IE, 80JJA, 80JJAA, 80QQB, 80RRB.
 Under section 44AE presumptive income for heavy goods vehicle shall be Î5,000 p.m. or part of a
month and in case of light or medium goods vehicle shall be Î4,500 p.m. or part of a month.

New deduction 80CCF has been introduced and deduction is allowed to the extent of investment in
long term infrastructure bonds but maximum deduction is Î20,000.

 Limit under section 194B is increased from Î5,000 to Î10,000 and under 194BB Î2,500 to Î5,000 and
under 194C Î20,000 is increased to Î30,000 and Î50,000 is increased Î75,000.

 Limit under section 194D is increased from Î5,000 to Î20,000 and under section 194H from Î2,500 to
Î5,000 and under 194-I Î1,20,000 has been increased to Î1,80,000 and under 194J Î20,000 to Î30,000.

 Under section 201, if any person has deducted tax at source but it has not been paid to the ovt.,
interest rate shall be 1.5% instead of 1%.

 Penalty for violation of audit provisions of section 44AB shall be 0.5% of turnover but maximum
Î1,50,000.

 In case of outstation allowance exemption shall be 70% of allowance or Î10,000 p.m. instead of
Î6,000 p.m. (amended through notification no. 85/2010 dated 22-11-2010 hence it should be applicable
from Nov-2011 examination and not from May-2011) 

9 Cost Inflation Index for Financial Year 2010-11 is 711.

 No capital gains in case of conversion of private limited company or non-listed public company into a
limited liability partnership firm. Similarly depreciation shall be apportioned between predecessor and
successor in the similar manner as in case of amalgamation etc.
Similarly unadjusted business losses and depreciation shall be considered to be losses of depreciation of
successor as if incurred in the year of succession, in the similar manner as in case of conversion of
proprietor concern or partnership firm into company.

 Amendment in Section 200 Rule 30 Time allowed shall be 7 days from the end of the month in which
the tax was deducted, but if the tax has been deducted in the month of March, tax should be deposited
on or before 30th April.

Accordingly section 40(a)(i) shall also stand amended as given below:

(:$,$'12%0#(2/0'41,304;(.-,#203%#2,4,/2*40.()2.,21 0'2/%$,#$%(,12%0#("%"

If any person has paid any interest, royalty or technical fee or other sum chargeable to income tax and
the amount is being paid outside India or it has been paid in India to a non-resident or to any foreign
company and such amount was subject to TDS but the person has not deducted tax at source during the
relevant previous year or after deducting the tax he has not paid it to the government during the
previous year or in the subsequent year within the time allowed under section 200(1), such payments
shall not be allowed to be debited to the profit and loss account.

If the tax has been deducted in the subsequent year or it was deducted in the previous year but was
paid in the subsequent year after the expiry of the time allowed under section 200(1), it will be allowed
to be debited in the year in which such tax has been paid.

%-,())05,$'#$,4/,12%0#"

Time allowed shall be 7 days from the end of the month in which the tax was deducted, but if the tax
has been deducted in the month of March, tax should be deposited on or before 30th April.

à


ABC Ltd. has paid a sum of Î35 lakhs outside India on 10.02.2011 being the fee for using technology
without deducting tax at source, in this case, expenditure is disallowed, but if the tax has been deducted
at source in the relevant previous year and has been paid by the company upto 07.04.2011, expenditure
shall be allowed in the previous year 2010-11 otherwise expenditure is allowed in the year in which the
tax has been paid to the overnment.

à


,2,4-%#, 27, .,(4 %# 57%17 $,$'12%0# /7()) 6, ())05,$ %# 27, 30))05%#8 1(/,/ %3 27, (//,//,, %/ (
10-;(#.

ÊÊ
Ê
Ê Ê Ê
 Ê Ê  Ê Ê Ê  Ê Ê Ê  Ê
 Ê Ê Ê  Ê Ê
ÊÊ




 
 









 















 



!" 



 


#
$

%
&


&
' '


 



  Section 2(15), ͞Charitable purpose͟ includes relief of the poor, education, medical relief,
preservation of environment (including watersheds, forests and wildlife) and preservation of
monuments or places or objects of artistic or historic interest, and the advancement of any other object
of general public utility:
40&%$,$ that the advancement of any other object of general public utility shall not be a charitable
purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any
activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any
other consideration, irrespective of the nature of use or application, or retention, of the income from
such activity:
40&%$,$ 3'427,4 that the first proviso shall not apply if the aggregate value of the receipts from the
activities referred to therein is ten lakh rupees or less in the previous year.


 ;2%0#() 0-;0/%2%0#17,-,304;(.-,#203/,4&%1,2(:%#1(/,03$%/24%6'20404/,))%#8(8,#2/03

)022,4%,/

A special mode of payment of service tax has been provided to a distributor or selling agent of lotteries
by inserting sub-rule (7C) in rule 6 of the Service Tax Rules, 1994.

The distributor or selling agents rendering the taxable service of promotion, marketing or
organising/assisting in organising lottery can discharge their service tax liability in the following rates
instead of paying service tax @10%:-

Ê

 ÊÊÊÊÊÊÊ Ê
Ê ÊÊ


($  
)
 '$
*
%+
Î#,

'
Î

! -

.
 

Î


! -
/

""" 
 
 $

'

 -

0'


" "
 



 


($  
)
 '$
1
%+
Î,

'
Ώ
! -

.
 

Î


! -
/

""" 
 
 $

'

 -

0'


" "
 



 


  Individual services for May/Nov-2011 shall 1. Legal consultancy services 2. Commercial training or
coaching services 3. Information technology software services 4. Cargo handling services 5. Customs
house agent͛s services 6. Practising Chartered Accountant͛s services 7. Consulting engineer͛s services 8.
Manpower recruitment or supply agency͛s services