Tax rates for the assessment year 2009-10 are given below

1. For Individual , every, HUF/AOP/BOI/Artificial Juridical Person. Net Income Range Up to Rs. 1,50,000.00 Rs. 1,50,000.00 - Rs. 3,00,000.00 Income tax rates NIL 10% of (total income minus 1,50,000.00) Rs.15,000.00 +20% of Rs. 3,00,000.00 - Rs. 5,00,000.00 (total income minus 3,00,000.00) Rs.55,000.00 +30% of Rs. 5,00,000.00 - Rs. 10,00,000.00 (total income minus 5,00,000.00) Rs.2,05,000.00 +30% of Above Rs. 10,00,000.00 (total income minus 10,00,000.00) 10% of 2% of income tax 1% of income tax and Surcharge Income tax and Surcharge NIL 2% of income tax 1% of income tax NIL 2% of income tax 1% of income tax NIL 2% of income tax 1% of income tax Surcharge NIL Education cess NIL Secondary and higher Education NIL

2. For Resident woman (Who is below 65 years at any time during previous year) Secondary and Net Income Range Up to Rs. 1,80,000.00 Rs. 1,80,000.00 - Rs. 3,00,000.00 Income tax rates NIL 10% of (total income minus 1,80,000.00) Rs.12,000.00 +20% of Rs. 3,00,000.00 - Rs. 5,00,000.00 (total income minus 3,00,000.00) Rs.52,000.00 +30% of Rs. 5,00,000.00 - Rs. 10,00,000.00 (total income minus 5,00,000.00) NIL 2% of income tax 1% of income tax NIL 2% of income tax 1% of income tax NIL 2% of income tax 1% of income tax Surcharge NIL Education cess NIL higher Education NIL

Rs.2,02,000.00 +30% of Above Rs. 10,00,000.00 (total income minus 10,00,000.00) 10% of 2% of income tax 1% of income tax and Surcharge Income tax and Surcharge

3.For Resident Senior Citizen (Who is 65 years or more any time during previous year) Secondary and Net Income Range Up to Rs. 2,25,000.00 Rs. 2,25,000.00 - Rs. 3,00,000.00 Income tax rates NIL 10% of (total income minus 2,25,000.00) Rs.7,500.00 +20% of Rs. 3,00,000.00 - Rs. 5,00,000.00 (total income minus 3,00,000.00) Rs.47,500.00 +30% of Rs. 5,00,000.00 - Rs. 10,00,000.00 (total income minus 5,00,000.00) Rs.1,97,500.00 +30% of Above Rs. 10,00,000.00 4. Firms Tax Rates Surcharge Education Cess 30% 10%* 2% (total income minus 10,00,000.00) 10% of 2% of income tax 1% of income tax and Surcharge Income tax and Surcharge NIL 2% of income tax 1% of income tax NIL 2% of income tax 1% of income tax NIL 2% of income tax 1% of income tax Surcharge NIL Education cess NIL higher Education NIL

Secondary and higher Education cess 1%

Note:-* (If net income exceeds Rs.1 Crore than surcharge 10%)

5. Local Authorities:Tax Rates Surcharge Education Cess 30% 10% 2%

Secondary and higher Education cess 1%

6. Co-operative Societies:Secondary and higher education Net Income Range Upto Rs.10000.00 Rs. 10000 to Rs. 20000.00 Rs. 20000.00 and above 7. Companies Secondary and higher education Company Rate of Income Tax Surcharge Education Cess 2% of income tax Domestic Company 30% 10%* and surcharge 2% of income tax Foreign Company Note:-* * If net income exceed Rs. 1 Crore than surcharge 10%. ** If net income exceed Rs. 1 Crore than surcharge 2.5%. 50% / 40% *** 2.5%** and surcharge cess 1% of income tax and surcharge 1% of income tax and surcharge 30% NIL 2% of income tax 1% of income tax 20% NIL 2% of income tax 1% of income tax Rate of Income Tax 10% Surcharge Education Cess NIL 2% of income tax cess 1% of income tax

*** Royalty received from Government or an Indian Concern in Pursuance of an agreement made by it with the Indian concern after March 31, 1961, but before April 1 ,1976 or fees for rendering technical service in pursuance of an agreement made by it after February 29 1964 but before April 1, 1976 and where such agreement has , in either case, been approved by the Central Government.

10. Short-term Capital gain :11. Long-term Capital gain:12. Wealth-Tax

15% 20%

1% of the amount by which net wealth exceeds Rs. 15,00,000.00 (applicable in the case of every individual , HUF And Company. [Surcharge nil, and Education cess nil]

ade by it with hnical service in

ery individual ,

Deductions, allowance and exempt income from Gross total Income.

Section 80C: 1) Deductions under this sections is available only to an individual or a HUF. 2) The maximum amount deductible under section 80C is Rs. 100000.00. Moreover , the aggregate amount of deductions 80C, 80CCC and 80CCD cannot exceed Rs.100000.00 Following are the nature of payment: 1) LIC (Subject to 20% of sum assured) 2) Non-Commutable deffered annuity. (in the name of Individual, child and his wife or her husband) 3) Deducted from the salary of the govt Employee for purpose of Securing him Deffered annuity (subject to 20% of salary of individual) for Indivudual, wife and child) 4) Contribution to RPF and SPF and approved Superannuation Fund. 5) Contribution to 15 year PPF. 6) Contribution to NSC, ULIP of UTI, ULIP of LIC Mutual Fund . 7) Payment for notified annuity plan of LIC I.e (New Jeevan Dhara I,II,& III) and New Jeevan Akshya I,II,& III). 8) Subcription to towards notified units of mutual fund or UTI. 9) Contribution to notified fund setup by Mutual fund or UTI. 10) Repayment of Instalment of Housing loan. 11) Any sum paid as Tuition Fees (Subject to two children of Individual). 12) Any payment towards the cost of purchase,construction of residential Property. 13) Amount invested in approved debenture and equity share in public company engaged in the infrastructure including power sector or units of mutual Fund which are used for a new infrastructure facility. 14) Amount Deposited in a fixed Deposit for a period of five year with a sehedule bank with a scheme framed by Central Govt. 15) Subcription to NABARD. 16) Amount Deposited under Senior Citizens Saving Scheme. 17) Amount Deposited in five year Time Deposit scheme in Post office. Section 80CCC: Deduction in respect of Contribution to pension fund . 1) This section provides a deduction to an individual for any amount paid or deposited by him in any annuity plan of LIC or any other insurer for receiving pension from pension fund(1023AAB). The deduction shall be restricted to Rs, 100,000.00. 2) The maximum amount deductible under section 80CCC is Rs. 100000.00. Moreover , the aggregate amount of deductions 80C, 80CCC and 80CCD cannot exceed Rs.100000.00 Section 80CCD: Deduction in respect of contribution to pension scheme notified by central Government. 1) The Individual is employeed by the central govt or any other employer on after 01 january 04. 2) He has in PY paid or deposited any amount in his account under a pension scheme notified by the central govt. 3) The maximum amount deductible under section 80CCD is Rs. 100000.00. Moreover , the aggregate amount of deductions 80C, 80CCC and 80CCD cannot exceed Rs.100000.00

Section 80D: Deduction in respect of medical insurance premia. 1) Following condition one should satisfy to claim this deduction. 2) The tax payer is an individual ( may be resident or non resident) or HUF ( may be resident or non-resident) 3) Insurance premium paid to scheme framed by GICI and any other Scheme framed by central govt. 3) The premium can be paid by any mode other than cash. 4) Following are the person on which Mediclaim policy is taken. Individual :- Spouse, Dependent, Individual and Dependent Children. HUF:- Any member of the family. Amount of Deduction General Deduction Rs. 15000.00 and additional amount which is deductible when policy is taken on health of a senior citizen Rs. 20000.00 Section 80DD: Deduction in respect of maintenance including medical treatment of a handicapped dependent who is a person with disability. 1) The taxpayer is Resident in India may be a Individual or a HUF and to claim this deduction one should not get deduction U/S 80U. 2) Following are the Person:Individual: Spouse, children, Parents, Brothers, Sisters of the individual or any of them HUF: Any dependent member of family. Amount Of Deduction A Fixed Deduction Rs. 50000.00 and a higher deduction Rs.75000.00 may be allowed if such dependent is a person with severe dsiability having disability over 80%. Section 80DDB: Deduction In respect of medical treatment. 1) The taxpayer is Resident in India may be a Individual or a HUF 2) Following are the Person:Individual: Spouse, children, Parents, Brothers, Sisters of the individual or any of them HUF: Any dependent member of family. Amount Of Deduction 1) Rs. 40000.00 or acutal expenditure incurred. But in case of Senior Citizen Rs.60000.00 or acutal expenditure incurred . 2) Deduction shall be reduced by the amount received from the insurance company or from the employer. Section 80E: Deduction in respect of repayment of loan taken for higher education. Amount of deduction Entire payment f interest is deductible. The deduction is available for a maximum of 8 years or till the interest is paid.

Section 80G: Deduction in respect of donations to certain funds, charitable institutions etc. Ref:- Book Amont of Deduction 10% of adjusted gross total income on qualifying amount of deduction. Section 80GG: Deduction in respect of rent paid. 1) He should be a self-employed person and /or a salaried employee who is in receipts of house rent allowance at any time during the previous year. Amount of Deduction: least of three 1) Rs. 2000.00 per month. 2) 25% of total income (after excluding long term and short term capital gain. 2) the excess of actual rent paid over 10% of total income (after excluding long term and short term capital gain) Section 24: Deduction under section 24 (House Property Income) Amount of Deduction 1) Standard Deduction 30% of net annual value is deductible irrespective of any expenditure incurred by the taxpayer. Municipal tax is deduct from gross annual value of it is paid by owner and actually paid during the previous year. 2) Interest on borrowed capital is allowable as deduction purpose of purchase, construction, repair, renewal or reconstruction of house property on accrual basis. Section 10(13A): House Rent allowance Amount of Allowance (Least of the following) 1) 50% salary in case of the residential house is situted at Bombay, Kolkata, Delhi and Madras & 40% salary at any other place 2) Actual HRA Received. 3) the excess of rent paid over 10% of salary. Section 16(ii): Entertainment allowance Amount of Allowance (Least of the following) Only in case of GOVT employee. 1) Rs 5000.00 2) 20% of basic salary 3) Actual amount Received Other Misc. Allowance: Children Education Allowance:- Rs. 100 per month per child upto a maximum of two children Children Hostel Allowance:- Rs. 300 per month per child upto a maximum of two children Exempt Income:1) In case the income of an individual includes the income of his minor child in terms of section 64 1(A) such individual shall be entitled to an exemption of Rs.1500. 2) Dividend received from Indian companies u/s10(34). 3) Share of profit from a firm.

Section 40(b):- Remuneration to partner. Remuneration shouldnot be exceed the permissible limit:In case of a firm carrying on a profession a) On the first Rs.1,00,000.00 of the book profit b) on the next Rs.1,00,000.00 of the book profit c) on the balance of book profit In case of any other firm a) On the first Rs.75,000.00 of the book profit b) on the next Rs.75,000.00 of the book profit c) on the balance of book profit

Rs 50000.00 or 90% of Book Profit which ever is more 60% of Book Profit 40% of Book Profit

Rs 50000.00 or 90% of Book Profit which ever is more 60% of Book Profit 40% of Book Profit

Here Book Profit Means:1) Find the net profit of the firm as per P/L account. 2) Income from HP, other source, CG, not part of the P/L account. 3) Add remuneration to partner if debited to P/L account. Section 40(b):- Interest payable to partner. 1) Interest should not exceed 12%. 2) If Exceeds than excess amount is not deductible.

Advance Payment of Income Tax For the assessment year 2009-2010.

Due dates of payment of advance Tax. Particulars / Date Corporate Assessee Upto 15% of advance tax payable Upto 45% of advance tax on or before 15 September payable Upto 75% of advance tax on or before 15 December payable Upto 100% of advance tax payable on or before 15 March on or before 15 June Interest payable by the assessee. Section 234A: For defults in furnishing return of Income. If the return of income is furnished after the due date, the assessee is liable to Pay simple interest @1% per month or part of month. Section 234B: For defults in payment of advance tax. An assessee who is liable to pay advance tax , has to failed to pay such tax than simple interest @1% is Payable on assessed tax from the date on which advance tax become due. As assessee who is paid advance tax but the amout of advance tax paid by him is less than 90% of assessed tax, than Simple interest @1% is payable on Assessed tax minus advance tax. Section 234C: For deferment of advance tax Interest is payable on the under this section if the assessee has not paid the advance tax or underestimated instalments of advance tax.Interest is computed on the following basis. In case of Non-corporate assessee When Interest payable On or before 15 Sep less than 30% (a-b) On or before 15 Dec less than 60% (a-b) On or before 15 Mar less than 100% (a-b) Rate of Interest Simple Interest @1% Simple Interest @1% Simple Interest @1% Period of Interest 3 Months 3 Months Amount on which interest is payable 30%(a-b)-c 60%(a-b)-d 100%(a-b)-e Non-Corporate Assessee NIL Upto 30% of advance tax payable Upto 60% of advance tax payable Upto 100% of advance tax payable

In case of corporate assessee Amount on which interest is When Interest payable Rate of Interest Period of Interest payable On or before 15 June less than 12% (a-b) Simple Interest @1% 3 Months 15%(a-b)-c On or before 15 Sep less than 36% (a-b) Simple Interest @1% 3 Months 45%(a-b)-d On or before 15 Dec less than 75% (a-b) Simple Interest @1% 3 Months 75%(a-b)-e On or before 15 Mar less than 100% (a-b) Simple Interest @1% 100%(a-b)-f Note:a) Tax on total income declared in the return filed by the assessee. b) TDS or TCS. c) Amount of advance tax on or before Jun15 of the FY.Immediately preceding the relevants AY. d) Amount of advance tax on or before Sep15 of the FY.Immediately preceding the relevants AY. e) Amount of advance tax on or before Dec 15 of the FY.Immediately preceding the relevants AY. f) Amount of advance tax on or before Mar of the FY.Immediately preceding the relevants AY.

FBT for the assessment year 2009-2010

A) Sl.no Particulars 1 Entertainment Amount of Expenditure (in %) 20% Remarks

2 Hospitality 3 Conference Sales Promotion & 4 Publicity 5 Employee Welfare Conveyance, Tour,and Travel (including foreign 6 travel) 7 Local Travel Hotel, Boarding and 8 lodging Repair,running(including fuel), maintenance of motor car, Depreciatio 9 and Interest on loan Telephone charges 10 (including mobile phone) Accommodation of 11 Guest house. 12 Festival Celebrations 13 Health and club Facilities 14 Gift 15 Scholarships

however employer engaged in the business of hotel, hospitality for airline and shipping companies FBT 20% valued to be 5% 20% Exp. On display of product, free sample medicine or 20% medical equipment are not subject to FBT 20%

5% 20% however employer engaged in the business of manufacturing or production of computer software, 20% airline and shipping companies FBT valued to be 5%

20%

20% 20% 50% 50% 50% 50%

B) Such fringe benefits will be taxed @ 30% us 115WA.In addition Surcharge 10%+Education cess2%+Secondary higher education cess 1%. Due dates of payment of advance Tax of FBT. Particulars / Date Corporate Assessee Non-Corporate Assessee

not less than 15% of total FBT NIL not less than 45% of total FBT not less than 30% of total FBT on or before 15 September not less than 75% of not less than 60% of total FBT on or before 15 Decembertotal FBT not less than100% of total FBT not less than100% of total FBT on or before 15 March on or before 15 June

Interest on FBT As per provisions u/s 115WJ , Interest @1% per month or part of a month for 3 months is to be paid for the shortfall of advance FBT payable by the due dates as mentioned above. Further where an assessee has failed to pay the advance tax payable by him during a financial year or where advance tax paid by him is less than 90% of tax assessed u/s 115WE(regular assessment) or u/s 115WF (best judgemnt assessment) u/s 115WG (re-assessment ) simple interest @ 1% per month is payable, for every month or part thereof comprised in the period from the 1st day April next following such financial year. FBT is calcuted by given rate. Fringe Benefits Tax rate Sucharge Education cess SHEC

30% 10% 2% 1%

Return form:- The CBDT has notified following forms for filling of Income tax return.
ITR FORM ITR - 1 ITR - 2 ITR - 3 ITR - 4 ITR - 5 ITR - 6 ITR - 7 ITR - 8 SUBJECT For Individual having income from salary and interest. For Individual and HUF not having Business and Profession income. For Individual and HUF being partners in firms. For Individual having income from a proprietary business or profession. For Firms, AOPs and BOIs. For Companies For persons including companies furnish return under sec 139(4A), 4B,4C,4D. Return for fringe Benefits

Rule of carry forward of loss

No. of Profit against which C/F loss can be set-of Year C/F Income under head "Income from HP. Speculation Profit 8 Years 4 Years

Type of Loss 1) HP Loss 2) Speculation Loss 3) Non- Speculation Business loss

No-time I) on a/c of unabsorbed depn limit and Family planning any income not being salary income ii) other remaining business any business profit wheather from speculation 8 years or otherwise. 4) Capital Loss I) Short-term capital loss ii) Long-term capital loss any income under the Head of "Capital Gains". 8 years Long term Capital gains. 8 years

5) Loss from the activity of owning and maintaining race Income from the actvity of owing and horses. maintining race horses.

4 Years

SCHEDULE OF RATES OF TAX ON PROFESSIONS, TRADES AND EMPLOYMETS

Salary & wages earners. Such persons whose monthly salaries or wages are sl.no 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Range Rs.3000.00 or less Rs.3001.00 or more but less than Rs.5001.00 Rs.5001.00 or more but less than Rs.6001.00 Rs.6001.00 or more but less than Rs.7001.00 Rs.7001.00 or more but less than Rs.8001.00 Rs.8001.00 or more but less than Rs.9001.00 Rs.9001.00 or more but less than Rs.15001.00 Rs.15001.00 or more but less than Rs.25001.00 Rs.25001.00 or more but less than Rs.40001.00 Rs.40001.00 and above Amount of tax NIL Rs.30 p.m Rs.40 p.m Rs.45 p.m Rs.50 p.m Rs.90 p.m Rs.110 p.m Rs.130 p.m Rs.150 p.m Rs.200 p.m

Legal practitioners,including solicitors, and notaries public;medical practitioners, Directors( other than those nominated by the Govt. ) of companies act 1956, Technical and professional consultants including architects, engineers, Chartered accountants, actuaries, management consultants and tax consultants. Where the annual gross inocme of the persons mentioned above is sl.no 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Range Rs.18000.00 or less Rs.18001.00 or more but less than Rs.24001.00 Rs.24001.00 or more but less than Rs.36001.00 Rs.36001.00 or more but less than Rs.60001.00 Rs.60001.00 or more but less than Rs.72001.00 Rs.72001.00 or more but less than Rs.84001.00 Rs.84001.00 or more but less than Rs.96001.00 Rs.96001.00 or more but less than Rs.108001.00 Rs.108001.00 or more but less than Rs.180001.00 Rs.180001.00 or more but less than Rs.300001.00 Rs.300001.00 and above Amount of tax NIL Rs.216 p.a. Rs.300 p.a. Rs.360 p.a. Rs.480 p.a. Rs.540 p.a. Rs.600 p.a. Rs.1080 p.a. Rs.1320 p.a. Rs.1560 Rs.1800 p.a.

Contractors of all description engaged in any type of work Such contractors whose gross business in year is: sl.no 1) 2) 3) 4) Range Less than Rs.100,000.00 Rs.100001.00 or more but less than Rs.500001.00 Rs.500001.00 or more but less than Rs.1000001.00 Rs.1000001.00 and above Amount of tax NIL Rs.300 p.a. Rs.750 p.a. Rs.900 p.a.

Dealers liable to pay tax under the west bengal sales tax act 1984, central sales tax act , 1956 or the west bengal value added tax act , 2003. Such dealers whose annual gross turnover is: sl.no 1) 2) 3) 4) 5) 11) Range Less than Rs.200000.00 Rs. 200000.00 or more but not exceeding Rs. 7.5 Lakh above Rs. 7.50 lakh but not exceeding Rs. 25 Lakhs above Rs. 25 lakh but not exceeding Rs. 50 Lakhs above Rs. 50 lakh but not exceeding Rs. 2 crore Above 2 crore Amount of tax Rs.150 p.a. Rs.300 p.a. Rs.600 p.a. Rs.1200 p.a. Rs.2000 p.a. Rs.2500 p.a.

Partnership firms when engaged in any profession , Trade or calling. Such firm whose gross turnover is :sl.no Range 1) Rs. 25 lakhs or less 2) above Rs.25 lakhs but less than 1 crore 3) Rs. 1 Crore or above Companies registered under the companies act 1956. such companies engaged in any profession, trade and calling. Banking Companies as defined in the banking regulations act 1949 OTHERS Internet caf Security Agency Weighbridge Money lender under bengal money lender act 1940 Destilleries, breweries and bottling plant. Foreign Liquor Vendors Residentilal Hotels (3 star category) Nurshing home or pathological Laboratories. Cinema hoses and Theaters Cold Stroage

Amount of tax Rs.600 p.a. Rs.1200 p.a. Rs.2500 p.a. Rs.2500 p.a

Rs.2500

p.a

Rs. 1500 Rs.2500 Rs. 1500 Rs.2500 Rs.2500 Rs.2500 Rs.2500 Rs.2500 Rs 500 Rs 900

p.a p.a p.a p.a p.a p.a p.a p.a p.a p.a

Advance tax on professional Tax :- There is no provision regarding payment of advance of professional tax. Interest:- if the payment not been paid within due dates than interest will be attract @1% per month.

TAX DEDUCTED AT SOUCRCE Section 194A:- Deduction of tax at source from interest other than interest on securities Tax under section 194A is not deductible where the aggregate amount of interest credited or paid during a financial year does not exceed the amount given below. Aggregate amount 10,000.00 10,000.00 10,000.00 5,000.00

Particulars 1) Where the payer is a baking company and interest is paid or payable on time deposit. 2) Where the payer is a Co-operative engaged in carrying on the banking business and interest is paid or payable on time deposit. 3) Where the payer is post office and interest is paid or payable notified deposit scheme with post office. 4) Where the payer is the person Rate of Deduction:Nature of payment If receipient is a resident other than a domestice co. If receipient is a domestice co. if aggregate amount does not exceed Rs.10 lakh/1 crore 10.30% 20.60%

if aggregate amount exceed Rs.10 lakh/ 1 crore 11.33% 22.66%

Section 194B:- Deduction of tax at source from winnings from lotteries or crossword puzzles: (Both resident and non resident.) A person reponsible for paying to any person any income by way of winnings from lotteries or crossword puzzles or winnings from card games or other games , exceeding Rs.5000.00 is required at the time of such payment, to deducted income tax thereon at the rate 30.9%. Rate of Deduction:Nature of payment winnings from lotteries, crossword puzzles, card games if aggregate amount does not exceed Rs.10 lakh/1 crore 30.90% if aggregate amount exceed Rs.10 lakh/ 1 crore 33.99%

Section 194BB:- Deduction of tax at source from winnings from horse races: (Both resident and non resident.) Tax deductible at source from any income by winnings from the horse races at prescribes rates. Deduction of tax at source can be made only In cases of where the income by way of winnings from horse races to be paid to a person exceeds Rs.2500.00 Rate of Deduction:Nature of payment Winnings from horse races if aggregate amount does not exceed Rs.10 lakh/1 crore 1 if aggregate amount exceed Rs.10 lakh/ 1 crore

Section 194C:- Deduction of tax at source from payments to contractors and sub-contractors The Provision are given below: Tax is required to be deducted at source where the amount credited or paid to a contractor or sub contractor exceeds Rs.20000.00 in a single payment or Rs.50000.00 in the aggregate during a financial year. Rate of Deduction:Nature of payment Payment made to contractor( in case of advertising contractor) Payment made to contractor( other than advertising contractor) Payment made to sub-contractor if aggregate amount does not exceed Rs.10 lakh/1 crore 1.03% if aggregate amount exceed Rs.10 lakh/ 1 crore 1.133%

2.06% 1.03%

2.266% 1.133%

Section 194I:- Deduction of tax at source from income by way of rent. Any person (not being an individual or a HUF ) responsible for paying rent to a resident is required to deduct tax at source under the provision of this section.No tax is deductible if the amount of rent credited or paid during the financial year does not exceeds Rs.120000.00 Rate of Deduction:Nature of payment a) rent of plant , machinery or equipment b) rent of land, building or furniture to an Individual and HUF b) rent of land, building or furniture to a person other than an Individual and HUF if aggregate amount does not exceed Rs.10 lakh/1 crore 10.30% if aggregate amount exceed Rs.10 lakh/ 1 crore 11.33%

15.45%

16.995%

20.60%

22.66%

Section 194J:- Tax deduction at source on fees for professional or technical service. Any person, who is responsible for paying to a resident any sum by way of fees for professional service or fees for technical service or royalty shall deduct tax at source. Where the amount of such sum or as the case may be the aggregate of the amount of such sums credited or paid or likely to be credited or paid during the financial year does not exceeds Rs.20000.00 tax is not deductible. Rate of Deduction:Nature of payment Professionla or technical service rendered if aggregate amount does not exceed Rs.10 lakh/1 crore 10.30% if aggregate amount exceed Rs.10 lakh/ 1 crore 11.33%

MINIMUM ALTERNATIVE TAX (115JB) Rate of Income Tax on Book Profit Secondary and higher education cess

Company

Education Surcharge Cess 2% of income tax and surcharge 2% of income tax and surcharge

Domestic Company

10%

10%*

1% of income tax and surcharge

Foreign Company

10%

2.5%**

1% of income tax and surcharge

* If Book Profit exceed Rs. 1 Crore than surcharge 10%. ** If Book Profit exceed Rs. 1 Crore than surcharge 2.5%. MAT: If tax liability of the company under normal provision is lower than than the 10% of Book profit than such 10% of book profit shall be deemed as tax liability. Here the book profit means 1) Following are the item to be added back to the profit and loss account if Debited. Income tax paid or payable and the provision thereof, any amount carried to reserve, any amount ser aside for metting the ascertained liabilities, amount by way of provision for losses for the subsidary company, amount of dividend paid or propsed, any exempt expenditure, the amount of depreciation and deferred tax and provision thereof. 2) Following are the item to be Deducted to the profit and loss account if credited. Amount withdrawn from reserve, exempt income, Depreciation Debited to p& l account, amount of loss (before depreciation) brought forward or unabsorbed depreciation which ever is less as per books of account and amount of deferred tax and provision thereof.

Depreciation for the assessment year 2009-2010 as per Income tax

Section 32:- In order to claim depreciation an assessee has to fulfil the following conditions:1) The assets should be owned by the assessee. 2) The asset, in respect of which depreciation is claimed, must have been used for the business purpose.

Number
Block 1 Block 2

Number of Asset
Buildings : Residential buildings other than Hotels and Boarding House. Buildings : Office, Factory , godowns, or buildings which are not mainly used for residential purpose [ it covers hotels and boarding houses but does not cover those which are covered under Block 1 and 3. Buildings : The following Buildings : a. buildings aquired on or after September 1, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of bussiness of providing infrastructure facilities under clause (i) of sub section (4) of section 80-IA. Furniture - Any furniture / fittings including electrical fittings. Plant & Machinery - Any Plant & Machinery [ not covered by Block 6,7,8,9,10,11or 12] and motor cars (other than those used in a business of running them on hire) aquired or put to use on or after April 1, 1990. Ocean - going ships, vessels odinarily operating on inland waters including speed boats Plant & Machinery :- Buses, Lories and taxies used in the business of running them on hire Plant & Machinery: Aeroplanes Plant & Machinery: Containers made of glass or plastice used as refiles and plant and machinery .

Rate of Depreciation
5%

10%

Block 3

100% 10%

Block 4 Block 5

15%

Block 6

20% 30%

Block 7

Block 8 Block 9

40% 50%

Block 10 Plant & Machinery: Computers including computer software, Book owned by the professional( other than annual publication). Block 11 Plant & Machinery: Energy saving device; renewal of energy device: rollers in flour mills, sugar works, and steel industries. Block 12 Air Pollution control Equipment, water Pollution control Equipment, solid Pollution control Equipment etc. Block 13 Intangible assets: Know how, Patents, copyrights, trademark, licence, Franchies and any other business or commercial rights of similar nature.

60%

80%

100%

25%

Relevant Sections
SECTION 44AA: Maintenance of accounts by Persons. SECTION 44AB: Audit of accounts by certain Persons. 1 A Person carrying on business:- If total sales, turnover or gross receipts of business for the previous year (s) relevants to the asst. year exceeds Rs.40 lakhs . 2 A Person Carrying on Profession:If his gross receipts in profession for the previous year(s)

relevants to the asst. year exceeds Rs. 10 lakhs. 3 A Person Covered under section 44AD, AE & AF:- If such person claims that the Profit and gains from the business are lower than the profits and gains computed under these section (irrespective to his turnover) Due date for getting books audited/ submission of audit report and Form No. Different Tax Payers Corporate Non-Corporate 3CA 3CB Statement of Due date of getting Due date of Audit Form No. Particulars 3CD 3CD books of accounts September 30th September 30th submission of audit September 30th September 30th

SECTION 44AD: Computation of income on estimated basis in case of tax payers engaged in the business of civil construction.:1) Section 44AD Provides for a method of estimating income from the business of civil construction or supply of labour for civil construction work. The tax payer may be contractor or sub- contractor. It is applicable to all assessees whose gross receipts from the above mentioned business do not exceed Rs. 40 lakhs. 2) The income from the above- mentioned business will be estimated at 8% of gross receipts paid or payable to assessee. A taxpayer can voluntarily declare a higher income in his return. SECTION 44AE: Computation of income on estimated basis in case of tax payers engaged in the business of Plying, leasing or hiring trucks.:1) Section 44AE Applies to person owning not more than 10 goods carriages at any time during the previous year . For this purpose , an assessee who is in possession of a goods carriage, wheather taken on hire purchase or on instalments and for which the whole or part of the amount payable is still due , shall be deemed to be the owner of such goods carriages. 2) The Income from each goods carriage being a "heavy goods vehicle" shall be estimated at Rs. 3500.00 for every month (or part of a month) during which the goods carriage is owned by the assessee.

3) The Income from each goods carriage other than a heavy goods vehicle shall be estimated at Rs. 3150.00 for every month (or part of a month) during which the goods carriage is owned by the assessee.

SECTION 44AF: Computation of Profits and gains of retails business. 1) The Scheme is applicable in the case of an assessee who is engaged in retail trade in any goods or merchandise . He may be an individual , HUF, Firm, Company or any other Taxpayer. 2) The turnover of the assessee does not exceed Rs. 40 lakh. 3) If the above two conditions are satisfied , then profits and gains of such business shall be presumptively computed at 5% of the gross receipts , or as the case may be , a sum higher than the aforesaid sum as may be declared by the assessee in his return of income. SECTION 43B: Certain expenses are deductible on payment basis. 1) any sum payable by way of tax, duty ,cess, or fee ( what ever name called under any law for the time being in force.) 2) any sum payable by an employer by way of contribution to PF, Superannuation Fund or any other fund for the welfare of the employees. 3) any sum payable as bonus or commission to employee for service rendered. 4) any sum payable as interest on any loan or borrowing from a Public Financial Institution (ICICI, IFCI, IDBI, LIC, And UTI) or a state Financial Corporation or a state Industrial investment corporation. 5) Interest on any loan or advance taken from a schedule bank including a co-opeartive bank ; 6) any sum payable by an employer in lieu of leave at the credit of his employee. SECTION 40A(3) : Payment exceeding Rs. 20,000.00 paid otherwise than by account payee cheques or Bank draft : 1) From the asst. year 09-10 , if the aggregate payment (otherwise than by way of account payee cheque /draft) to the same person during a day exceeds Rs. 20000.00 the provision of section 40A(3) Will apply and the entire amount of such payment will be disallowed. Exceptions(Rule 6DD): Following are the circumstances under which no disallowance will be made of the expenditure even if the payment exceeding Rs.20000.00 is made otherwise than by an account payee cheque or demand draft. 1) Payment made to banking and other credit institutions such as RBI, Commercial banks in the public and private sector , co-operative banks or land mortgage banks, LIC.

2) Payment made to both central Govt and State Govt. 3) Payment through banking system I.e letters of credit, mails or telegraphic transfer, book adjustment in same bank or between one bank with another, Bills of Exchange, Debit card and credit card. 4) Payment made by book adjustment by an assessee in the account of the payee against money due to the assessee for any goods supplied or service rendered by him to the payee. 5) Payment to a cultivator, grower or producer.

SECTION 269SS: Mode of taking or accepting certain loans and deposits. No person shall take or accept from any other person any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,1) the amount of such loan or deposit or the aggregate amount of such loan and deposit; or 2) on the date of date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid ( wheather repayment has fallan due or not) the amount or the aggregate amount remaining unpaid; or 3) the amount or the aggregate amount referred to clause (a) together with the amount or the aggregate amount referred to in clause (b) is Rs.20000.00 or more. Provided that the provision of this section shall not apply to any loan or deposit taken or accepted from or any loan or deposit taken or accepted by:(Annexture 1) 1) Government 2) any banking company, post office saving bank or co-operative bank; 3) any corporation established by a Central,State or Provincial Act. 4) any government Company as defined under section 617. 5) any other institution , association or body, or class of institution as prescribed by the Central Govt. SECTION 269T: Mode of Repayment certain loans and deposits. No branch of banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft in the name of the person who has made the loan or deposit if. 1) the amount of the loan or deposit together with the interest , if any payable thereon, or

2) the aggregate amount of a loan or deposit held by such person with the branch of the banking company or co-operative bank or as the case may be, the other company or co-operative society or the firm , or other person either in his own name or jointly with any other person on the date of such repayment together with the interest , if any , payable on such loans or deposit, is twenty thousands rupees or more. Provided that nothing contained in this section shall apply to repayment of any loan or deposit taken

or accepted from. (Above annexure 1)