the amt exceeding 50,000
+ 20% of the amt exceeding 60,000
30% of the amt exceeding 1,5,0000
a) Rs.30,000 or 40% of Salary whichever is less for Gross Salary Rs.5,00,000
b) Rs.20,000 for Gross Salary exceeding Rs.5,00,000 .
a) In case of every individual, Hindu undivided family, association
of person and body of individuals, Surcharge on Income-tax is calculated
@ 10% if the total taxable income exceeds Rs. 8,50,000/-.
b) In the case of every Co-operative Society, Firm, Local Authority
and Company, Surcharge on Income-tax is calculated @ 2.5%.
is calculated on the net tax. (Tax as reduced by Rebate u/s.88,
88B and 88C but before giving Relief u/s.89(1).
Rent Allowance Exempt u/s. 10 (13A)
exempted subject to the least of the following:
HRA received :
paid in excess of 10% of Salary :
of Salary in Metro Cities or
of Salary in other Cities :
Here Salary means Basic Salary as well as DA if the terms of employment
Any allowance granted to meet the expenditure incurred wholly, necessarily
and exclusively on conveyance in performance of the duties of office
and so certified by the employer is exempt u/s 10(14).
Any allowance granted to an employee to meet his expenditure for the
purpose of commuting between the place of his residence and the place
of his duty to the extent of Rs.800/- per month is exempt u/s.10(14).
An amount of Rs.15,000 or the actual amount reimbursed by the employer
whichever is less is exempt under proviso V of Sec. 17(2).
out property, deduction of 30% of the Net Annual Value is allowed.
No separate deduction for repairs, Collection Charges Insurance Premium,
Annual Charge and ground rent is allowed.
For self occupied property, deduction on account of interest on borrowed
capital for individuals is Rs.30,000 or actual interest paid / payable
whichever is less is allowed at source by the DDO on receipt of an
application from the assessee in Form No.12C alongwith the Interest
Where the property is acquired or constructed with capital borrowed
on or after 1/4/1999, and such construction is completed within 3
years from the date of taking the loan, deduction of Rs.1,50,000/-
or actual interest paid / payable whichever is less is allowed. Also
if an assessee takes a new housing loan for the purpose of repayment
of old housing loan (old loan taken after 1/4/99), a deduction up
to Rs. 1,50,000/- or actual interest repaid on the balance outstanding
of the old loan is allowed subject to the production of a certificate.
for family pension u/s.57(iia):
An amount of Rs.15,000/- or 33 1/3% of family pension whichever is
less is allowed as deduction.
If an assessee receives arrears of family pension, then, relief u/s.
89(1) can be claimed by him.
The Capital Gain arising out of sale of long term capital asset can
be invested in National Bank for Agriculture and Rural Developement,
National Highways Authority of India, Rural Electrification Corporation
Limited, National Housing Bank or Small Industries Development Bank
of India within six months from the date of sale. (Lock-in period
is 3 years)
Any sum paid by cheque to keep in force an insurance on health of
the assessee or his dependents in accordance with the Scheme framed
by the General Insurance Corporation of India or any other insurer
and approved by the Insurance Regulatory and Development Authority,
upto Rs.10,000/- is allowed as a deduction. Where the premium is paid
in respect of a Senior Citizen, the permissible deduction will be
The amount (a) of expenditure incurred by way of medical treatment,
training and rehabilitation of a handicapped dependent or (b) paid
or deposited under any scheme framed in this behalf by the LIC or
any other insurer or the Administrator and approved by the Board for
the maintenance of the handicapped dependent, shall be allowed a deduction
of Rs.50,000/- either under (a) or (b) or aggregate of (a) and (b)
on the production of a certificate from the Government Hospital in
the prescribed form and manner, along with the return of income u/s.
139 in respect of the assessment year for which the deduction is claimed.
Where such dependant is a person with severe disability, a deduction
of Rs. 75,000/- can be claimed.
If any expenditure is actually incurred for the medical treatment
of specified diseases or ailments for the assessee or his dependent
then a deduction of Rs.40,000/- is allowable on the production of
a certificate in Form No.10-I, issued by a Neurologist, an Oncologist,
Urologist, a Hematologist, an Immunologist or such other specialist
as may be prescribed, working in a Government Hospital, while filing
the Return of Income.If the expenditure is incurred in respect of
Senior Citizen, the limit of deduction is Rs. 60,000/-.
Applicable to Individuals only.
Any Ammount paid
by the assessee in the previous year out of his income chargeable
to tax by way of repayment of loan, taken by him from any Financial
/ approved Charitable Institution for the purpose of pursuing his
higher education or interest on such loan is eligible for a deduction
not exceeding Rs. 40,000/-.
An assessee not in receipt of HRA incurs any expenditure on Rent,
is allowed a deduction of least of the following:
a) Rent paid in excess of 10% of the total income
b) 25% of the total income
c) Rs.2,000 per month
Note: Total Income means Total Income before allowing deduction
under this section. The above deduction is allowable only if the assessee
or spouse or minor child does not own a house in th palce of employment
To claim such a deduction, the assessee should file a declaration
in Form No.10BA.
Applicable to individual and HUF.
A deduction of upto Rs.12,000/- is available. An additional deduction
of Rs.3,000 is available if income includes interest on Government
Note: Any income by way of :
i) Dividends from Company.
ii) Income received in respect of the Units of a mutual fund, from
the Administrator of the specified undertaking & from specified
iii) Income received in respect of Units of Unit Trust of India are
Any assessee suffering from a permanent physical disability (including
blindness) or is subject to mental retardation, on the production
of medical certificate from Government Hospital in the prescribed
form and manner , along with a Return of Income, shall be allowed
a deduction of Rs.50,000/.
Where such assessee
is a person with severe disability, a deduction of Rs.75,000/- can
1) In the case of an individual or a HUF, whose gross total income
before giving effect to deductions under chapter VI-A, is Rs.1,50,000/-
or less, a Rebate of 20% of the amount invested subject to a maximum
of Rs.70,000/- is available from the tax payable. Also a rebate
of 20% on an additional amount of Rs.30,000/- is available when
such sum is invested in specified investments.
2) In the case of an individual or a HUF, whose gross total income
before giving effect to deductions under chapter VI-A, is more than
Rs.1,50,000/- and less than Rs.5,00,000/-, a Rebate of 15% of the
amount invested subject to a maximum of Rs.70,000/- is available
from the tax payable. Also a rebate of 15% on an additional amount
of Rs.30,000/- is available when such sum is invested in specified
an individual shall be entitled for a Rebate of 30%, if is income
is chargeable under the head Salaries does not exceed Rs.1,00,000/-
before allowing deduction u/s.16 and is not less than 90% of his
gross total income.
88B for Senior Citizens:
For a resident individual who has attained the age of 65 years or
more,at any time during the previous year is entitled to a deduction
of 100% of the income-tax or Rs.20,000/- whichever is less from the
88C for women below the age of 65years
A resident woman individual below the age of 65 years is entitled
to a deduction of Rs.5,000/- or actual tax payable whichever is less
from the tax payable.
If a person who is required to furnish a return of income as required
under section 139(1) or by the proviso to that sub-section, fails
to furnish such return before the end of the relevant assessment year,
shall be liable to pay by way of penalty a sum of Rs.5,000/-.
Where the Return of Income of any assessment year u/s.139(1) or 139(4)
or in response to a notice u/s.142(1), is furnished after the due
date, as specified in sub-section 1 of section 139, or is not furnished,
the assessee shall be liable to pay simple interest at the rate of
one and quarter percent for every month or part of a month comprised
in the period commencing on the date immediately following the due
Where an assessee who is liable to pay advance tax under section 208
has failed to pay such tax or, where the advance tax paid by such
assessee under the provisions of section 210 is less than 90% of the
assessed tax, the assessee shall be liable to pay simple interest
at the rate of one and quarter percent for every month or part of
a month comprised in the period from the 1st day of April following
the financial year.
Where an assessee other than a Company, who is liable to pay advance
tax under section 208 has failed to pay such tax or,
i) the advance tax paid by the assessee on his current income on or
before the 15th day of September is less than 30% of the tax due on
the returned income or the amount of such advance tax paid on or before
the 15th day of December is less than 60% of the tax due on the returned
income, then, the assessee shall be liable to pay simple interest
interest at the rate of one and quarter percent per month for a period
of three months on the amount of the shortfall from 30% or, as the
case may be, 60% of the tax due on the returned income;
ii) the advance tax paid by the assessee on his current income on
or before the 15th day of March is less than the tax due on the returned
income, then, the assessee shall be liable to pay simple interest
at the rate of one and quarter percent on the amount of the shortfall
from the tax due on the returned income.
Dates for Filing Return of Income:
All Individuals/HUF/Firms deriving Income from Salary, House Property,
Capital Gains, Business or Others Sources and not covered u/s. 44AB
are required to file the Return of Income by 31st July.
Tax Audit Cases covered u/s. 44AB, Company returns and person satisfying
any one of the Economic Criteria (2C) are required to file the Return
of Income by 31st October.
All assessee are required to quote PAN in the Return of Income/Challans/Correspondance
etc. Failure to quote PAN or quoting of wrong PAN will attract penlaty
of Rs.10,000/- u/s. 272B. Assesses who have not applied for PAN
are required to apply for the same in Form 49A before the Jurisdictional