Beruflich Dokumente
Kultur Dokumente
z Based on the residential status of payer, his tax liability will be as given
ALLOWANCES
z Conveyance reimbursement fully exempt.
z Conveyance allowance, exempt up to Rs. 800 p.m., no proof of
spending needed.
z Medical reimbursement, exempt up to Rs. 15,000 p.a. if in India
and up to Rs.2,00,000 if abroad, bills to be attached.
z Medical Allowance fully taxable.
z Mediclaim of employees & their family paid by employer fully
exempt.
z Children education allowance. (exempt up to Rs. 100 p.m.p.c.
max. 2 children) no bills to be attached.
z Hostel expenditure allowance. (exempt up to Rs. 300 p.m.p.c.
max. 2 children) no bills to be attached.
ALLOWANCES
z Sec 54: sale resi house and buy resi house within 1 year before
and 2 year after sale or construct new house within 3 yeas.
capital gain saved = cost of new house. new house should not
be sold for 3 years. capital gain account scheme (CGAS )
available.
z Sec 54F: sale any long term capital asset except resi. house
and buy resi. house within 1 year before and 2 year after sale or
construct new house within 3 years. capital gain saved = cost of
new house x capital gain / net sale consideration. new house
should not be sold for 3 years. CAGS available. he should not
have more than one house before and for next 2 to 3 years.
Saving Tax On Long Term Capital Gain
z Sec 54 EC: sale any long term capital asset and buy
specified bonds like NABARD, NHAI, REC, NHB,
SIDBI within 6 months of sale. capital gain saved =
investment in bonds. no sale or loan on security of
bonds for 3 years. no CGAS available. from AY 2007-
08, only NHAI & REC only.
z Sec 54B: sale agri. land and buy agri land within 3
year of sale. capital gain saved = cost of new land.
new land should not be sold for 3 years. CGAS
available. even short term capital gain can be saved.
Saving Tax On Long Term Capital Gain
z If the new asset is sold before the lock in, the exemption is
revoked and taxable as short term capital gain except in case of
sec 54EC & f it is long term capital gain.
z If a person buys any shares within 3 months before record date
of dividend and sells within 3 months after record date then loss
to the extent of such dividend is ignored.
z If a person buys any units of mf within 3 months before record
date of dividend or bonus and sells within 9 months after record
date then loss to the extent of such dividend is ignored and loss
on such original units ex bonus is ignored and taken as cost of
the bonus units.
Income From Other Sources
z Corporates:
z 15% before 15th June
z 45% before 15th Sept
z 75% before 15th Dec
z 100% before 15th Mar
z Non-corporates:
z 30% before 15th Sept
z 60% before 15th Dec
z 100% before 15th Mar
z Applicable only if tax liability is more than Rs. 5,000
Fringe Benefit Tax (FBT)
z Tax is payable on payments made for employees and deemed
to be made for the employees.
z Tax payable = 30% + surcharge @ 10% on tax + education cess
@ 2% on tax including surcharge
= 33.66% of fringe benefit or deemed fringe benefit.
z No surcharge for co-operative society & local authority.
Surcharge @ 2.5% for foreign company.
z Tax paid by any employer. Exemption to individuals, HUF and
charitable trusts registered u/s 12AA or exempt u/s 10(23C).
z Tax paid even if no income tax payable e.g. Agricultural income.
The only condition is that the employer should have at least one
employee based in India.
Fringe Benefit Tax (FBT)
z Clubs 50%
Capital expenditure and depreciation on clubs exempt.
z Scholarship 50%
Donations are gifts if deductible as business expenditure.
Donations deducted u/s 80G are exempt.
Scholarships cannot be called staff welfare.
Securities Transaction Tax (STT)
z Tax on purchase or sale of shares or derivatives or units of
equity oriented mutual fund in recognized stock exchange or
sale of units to mutual fund.
z Taxable service is price of securities traded or futures traded or
in case of option, total of strike price & option premium.
z Rate of tax, From 1/06/06:
Delivery based sale or purchase of securities from stock
exchange 0.125%
Non delivery based 0.025%
Derivatives 0.017%
Sale of units to mutual funds 0.25%
No surcharge or education cess
Securities Transaction Tax (STT)
z If STT is paid,
long term capital gains tax is exempt &
short term capital gain tax is @ 10% + surcharge + education
cess.
z If income from securities is taxable as business income, one can
claim rebate of the STT paid u/s 88e.
z STT is not paid on off market transactions of shares or sale &
purchase of debt oriented mutual funds.
z For such transactions,
Long term capital gains tax is @ 10% + surcharge + education
cess without indexation or 20% + surcharge + education cess
with indexation benefit whichever is lower.
Short term capital gains tax is taxable at normal rate of tax with
other heads of income.
Securities Transaction Tax (STT)
z FORMS
z INTESTATE SUCCESSION.
z WILLS.
z PRIVATE TRUSTS.
z PUBLIC TRUSTS.
z TRANSFER OF IMMOVABLE PROPERTY, BENAMI
TRANSACTIONS, ETC.
All the Best