IncomeTax Ready Reckoner TaxBingo
Income Tax Ready Reckoner for Individuals Financial Year 2013-2014
Tax Compliance the Smart Way
A Publication of
TABLE OF CONTENTS
Tax Rates & Slabs………………………………….
2
Tax Rates for Capital Gains………………………
4
Deductions – Their Quantum & Conditions……
7
Allowances & Their Limits………………………..
10
Other Exemptions – Gratuity……………………..
11
Other Exemptions – Leave Encashment……….
13
Compliance Dates for Individuals……………….
15
Taxation of Dividends……………………………..
17
Join our Webinar : Tax Compliance the Smart Way Compliance is no longer optional. Smart are those who are aware of what to do - when and how. In our busy schedule, we know “TAX” only to become a monster later. Hit the road: Best practices for you to do your tax filing, tax planning and management – easily and effortlessly. In this interactive 45 minutes webinar, get all your questions answered by Experts. Read More On The Webinar
Page 1
TAX RATES & SLABS 1. For Individuals ( Male & Female ) Below 60 Years of Age Income Level
Rate of Tax
Upto 2,00,000
NIL
2,00,001 - 5,00,000
10% of the amount above 2,00,000
5,00,001 - 10,00,000
Rs. 30,000 + 20% of the total income above 5,00,000
Above 10,00,000
Rs. 1,30,000 + 30% of the total income above 10,00,000
2. For Senior Citizens ( Male & Female ) Between 61 to 80 Years of Age Income Level
Rate of Tax
Upto 2,50,000
NIL
2,50,001 - 5,00,000
10% of the amount above 2,50,000
5,00,001 - 10,00,000
Rs. 25,000 + 20% of the total income above 5,00,000
Above 10,00,000
Rs. 1,25,000 + 30% of the total income above 10,00,000
3. For Super Senior Citizens ( Male & Female ) above 80 Years of Age Income Level
Rate of Tax
Upto 5,00,000
NIL
5,00,001 - 10,00,000
20% of the total income above 5,00,000
Above 10,00,000
Rs. 1,00,000 + 30% of the total income above 10,00,000
Page 2
Please note 1. Education Cess of 3% is applicable on the Tax Rates. 2. If Income is more than Rs.1,00,00,000 [ 1 Crore ], additional Surcharge of 10% on the Tax is applicable. 3. These rates are applicable to Hindu Undivided Family, Association of Persons, Body of Individuals & Artificial judicial persons.
∆∆∆∆∆∆
Page 3
TAX RATES FOR CAPITAL GAINS
1. Asset : Shares & Mutual Funds
Description
Rate of Tax
Long Term Capital Gains ( If held for more than 12 months ) Profit for Shares listed on recognized stock exchange in India, where STT is paid
NIL
Profit for Unlisted Shares or where STT is not paid
10% without Indexation or 20% with indexation whichever is lower
Profit from Equity Oriented Mutual Funds
NIL
Profit from other than Equity Oriented Mutual Funds
10% without Indexation or 20% with indexation whichever is lower
Short Term Capital Gains ( If held for Less than 12 months ) Profit for Shares listed on recognized stock exchange in India, where STT is paid
15%
Profit for Unlisted Shares or where STT is not paid
Will be taxed as per your Tax Slab Rates
Profit from Equity Oriented Mutual Funds
15%
Profit from other than Equity Oriented Mutual Funds
Will be taxed as per your Tax Slab Rates
Page 4
2. Asset : Land, Property (Residential / Commercial), Plant, Machinery, Jewellery Description
Rate of Tax
Long Term Capital Gains ( If held for more than 36 months ) Profit from Sale of any of the above asset
10% without Indexation or 20% with indexation whichever is lower
Short Term Capital Gains ( If held for Less than 36 months ) Profit from Sale of any of the above asset
Will be taxed as per your Tax Slab Rates
∆∆∆∆∆∆
Page 5
DEDUCTIONS - THEIR QUANTUM & CONDITIONS TO AVAIL
1. Section 80C, 80CCC & 80CCD S.No
Exemption
Description
1
Premium Paid towards a Pension Plan (Self, Spouse & Children )
2
Premium Paid towards a life Insurance Policy ( Self, Spouse & Children )
3
Contribution to Public Provident Fund
4
Deposit in National savings scheme
5
Premium Paid towards a ULIP & Children )
6
Housing Loan Principal Repayment For Financial Year
7
Contribution to ELSS Mutual Fund Schemes (Eligible For Deduction Under section 80C)
8
Tuition Fee Paid for children (Max.2 Children)
9 10 11
( Self, Spouse Maximum exemption limit is Rs.1,00,000 per Financial Year
Contributions to Fixed Deposit Scheme (5 Years & above- Eligible for deduction Under Section 80 C) Post office Time Deposits (5 years & Above – Eligible for Deduction Under Section 80C) Stamp Paper Duty & Registration Charges
Condition : These investments/premiums need to be paid between 1 st April 2013 to 31 March 2014.
st
Page 6
2. Contribution to National Pension Scheme Exemption
S.No
Description
1
Incase your Employer is offering NPS & Employer is also contributing to the scheme, Section 80CCD(2) is applicable
Maximum exemption limit is Rs.1,00,000 per Financial Year Or Actual Employer contribution to NPS (restricted to 10% of your salary)
3. Section 80D Maximum Exemption
S.No
Description
1
Deduction for Medical Insurance Paid for Self, Spouse & Dependent Children
Rs.15,000 [ If Not Senior Citizen ] Rs.20,000 [ If Senior Citizen ]
2
Deduction for Medical Insurance Paid for Parents
Rs.15,000 [ If Not Senior Citizen ] Rs.20,000 [ If Senior Citizen ]
3
Preventive Costs
Upto Rs.5,000 within the limits of S.No.1 or S.No.2
Health
Check
up
Page 7
4. Other Exemptions under Chapter 6A S.no
Description
Condition
1
Sec.80 DD- Medical Treatment of a Disabled Dependent
Rs.50,000 (Normal) & Rs.1,00,000 (Severe)
2
Sec.80DDB – Medical Treatment of Specified Diseases
Rs.40,000 or Rs. 60,000 for a Senior Citizen
3
Sec.80E-Interest Paid on a Educational Loan (For self, Spouse &Dependent children)
Actual Interest Paid during the Financial Year.
4
Sec 80EE – Additional Interest exemption on Home Loans less than 25 Lakhs
If the Housing loan is less than 25 Lakhs, then the additional interest is exempted upto Rs.1,00,000
5
Sec.80G –Donations which are 100% Exempt
Actual Donation Paid during the Financial Year
6
Sec 80GG – Deductions in respect to rents paid.
Should not receive HRA from Employer or Must be Self Employed.
7
Sec 80TTA – Deduction in respect of interest on deposits in Savings account.
Applicable only for Savings account Interest Income maximum Rs.10,000
8
Sec.80U-Physical Disability for Self
If Disability 80%= Rs.1,00,000
∆∆∆∆∆∆
Page 8
ALLOWANCES & THEIR LIMITS Allowances is a fixed monetary amount paid by the employer to the employee for meeting some particular expenses. These allowances, if not used for their intended purposes are generally taxable & included in the gross salary. S.no
Description
Condition
1
House Rent Allowance
Least of 40% of Basic (50% if Metro) Or Actual HRA Received Or Rent Paid - 10% of Basic
2
Travelling Allowance
Rs.800 Per month, if transport facility is not provided by Employer - Should have taken Leave - Individual should have travelled (can take spouse/family members) - For Travel in India only LTA claimable is least of the below 1. Actual “LTA” received from your employer in the Financial Year. 2. Actual expenses incurred on travel to any place within India. 3. 40% of the total “basic “received in the Financial Year.
3
Leave Travel Allowance
4
Medical Reimbursement
Exempt upto Rs.1,250/- per month
5
Food Coupons
Exempt upto Rs.50/- per meal
Condition to avail allowance is that they should be one of your Pay Components & should appear on your Pay Slip. ∆∆∆∆∆∆ Page 9
OTHER EXEMPTIONS 1. Gratuity Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Who is eligible for Gratuity? If total period served with the current employer is 5 years or more of continues service then Gratuity is payable to any individual. What is the Amount of Gratuity payable? The amount of gratuity payable under the Act is calculated as below: a) Take your last month’s Basic Salary. If you are entitled for Dearness Allowance, please take (Basic + D.A) b) Divide the above amount by ‘26’ c) Multiply the above result by 15 d) Now multiply the result of (c) by the number of years of completed service. This is your Gratuity Entitlement. Eg: Last Month’s a) Basic + D.A = Rs. 26,000 b) 26,000 / 26 = Rs. 1,000 c) Rs. 1,000 X 15 = Rs. 15,000 d) No. of years worked = 8; Hence 15,000 X 8 = Rs. 1,20,000/- [Gratuity Entitlement] Please note: This is an example & for illustration purpose only
Page 10
Taxability of Gratuity Gratuity received by Government Employees And Employees of Local Authority Fully exempt
Gratuity received By Employees Under the Payment of Gratuity Act
Other Employees
Minimum of the following 3 limits:-
Minimum of the following 3 limits:-
1.Actual gratuity received or 2.15 days salary for every completed year, or part thereof exceeding six months or 3.Rs.10,00,000/-
1.Actual gratuity received or 2.Half months average salary of each completed year of service or 3.Rs.10,00,000/-
Meaning of salary: (i)Last drawn Basic salary plus Dearness allowance (ii)No. of days in a month to be taken as 26.
Meaning of salary: (i) Last drawn Basic salary plus DA
Page 11
2. Leave Encashment
Leave encashment is the amount payable for the employee’s leave period, depending upon the leaves to his credit and his salary at the time of termination of employment or at the time of encashing his leaves. To whom does this apply? Status of Employee
Nature of Leave Encashment
Government / Non Government employee
Leave encashment during continuity of employment
Government Employee Non Government Employee
Leave Encashment at time of retiring / leaving job.
Taxability It is chargeable to tax. However relief can be taken under Section 89. It is fully exempt from tax under Section 10 (10AA)[i] It is fully / partially exempt from tax in some cases under Section 10(10AA)[ii]
Taxability of Leave Encashment received at the time of retirement – Taxability? For the purpose of Exemption of accumulated Leave Encashment, employees are divided into two categories: i.
Government Employees (Central and State Government only): Leave encashment of accumulated leave at the time of retirement, whether on superannuation or otherwise, received by a Government employee, is fully exempt from tax.
ii.
Other Employees : Leave encashment of accumulated leave at the time of retirement, whether on superannuation or otherwise, received by other Page 12
employees (including employees of Local Authorities and PSU) is exempt to the extent of the minimum of the following amounts :
Rs. 3,00,000/Ten month’s average salary Cash equivalent of unavailed leave calculated on the basis of average salary of maximum 30 days leave for every year of actual services rendered to the employer from whose service he has retired Leave encashment actually received at the time of retirement.
Conditions for ‘Leave encashment’ 1. If the employee had received leave encashment in any one or more earlier previous year(s) also and had availed of the exemption in respect of such amount, than the limit given i.e. Rs. 3,00,000/-, shall be reduced by the amount of exemptions(s) availed earlier. 2. The exemption of Leave Encashment can also be claimed in case of resignation by an employee. Section 10(10AA) applies equally to a case of Voluntary on account of resignation. 3. Leave Salary received by an family of a government servant, who died in harness, is not taxable in the hands of the recipients. 4. Leave salary paid to legal heirs of a deceased employee in respect of privilege leave standing to the credit of such employee at the time of his/her death is an ex-gratia payment on compassionate grounds in the nature of gifts. Thus the payment is not in the nature of salary.
∆∆∆∆∆∆
Page 13
COMPLIANCE DATES FOR INDIVIDUALS
1. Due Dates for Filing Return of Income S.No
1
2
Due Date
Description Where the assessee is a person other than a company who is required to get his accounts audited under the Income Tax Act Normal Cases : Where the assessee is a person other than a company who is not required to get his accounts audited under the Income Tax Act
th
30 September
st
31 July
2. Payment of Advance Tax S.No
1
2
3
Due Date
Description 30% of Tax to be paid on Presumed income for the Financial Year Additional 30% of Tax to be paid on Presumed income for the Financial Year Balance Full Tax to be paid on Presumed income for the Financial Year
th
Before 15 September th
Before 15 December th
Before 15 March
Page 14
3. Payment & Filing of Wealth Tax Due Date
S.No
Description
1
1% of Net Worth of Assets beyond Rs.30,00,000 (Thirty Lakhs) is payable as wealth Tax.
Before March 31
2
Filing of such Wealth Tax Returns for Individuals
Before July 31
st
st
∆∆∆∆∆∆
Join our Webinar : Tax Compliance the Smart Way Compliance is no longer optional. Smart are those who are aware of what to do - when and how. In our busy schedule, we know “TAX” only to become a monster later. Hit the road: Best practices for you to do your tax filing, tax planning and management – easily and effortlessly. In this interactive 45 minutes webinar, get all your questions answered by Experts. Read More On The Webinar Page 15
TAXATION OF DIVIDENDS
While there is no tax payable by the individual on the dividends received by them, tax is deducted & paid by the Company/Mutual Fund scheme before providing you with the dividends. The quantum of tax deducted by companies / Mutual Fund schemes is as below :Description
Rate of Tax
Dividends received from Mutual Funds (Individuals/HUF) Equity Oriented Schemes (where STT is paid) Money Market & Liquid Fund Schemes Debt Schemes ( Other than Infrastructure Debt Scheme) Infrastructure Debt Scheme
NIL 25% + 10% Surcharge* + 3% Cess = 28.325% 25% + 10% Surcharge* + 3% Cess = 28.325% 25% + 10% Surcharge* + 3% Cess = 28.325%
st
* Applicable from 1 June 2013
Description
Rate of Tax
Dividends received from Shares (Individuals/HUF) Dividends received from Shares held [ Excluding Dividend Stripping ]
15% + 10% Surcharge* + 3% Cess = 16.95%
st
* Applicable from 1 June 2013
Page 16
Description
Rate of Tax
Dividends received from Mutual Funds (NRI) Equity Oriented Schemes (where STT is paid) Money Market & Liquid Fund Schemes Debt Schemes ( Other than Infrastructure Debt Scheme) Infrastructure Debt Scheme
NIL 25% + 10% Surcharge* + 3% Cess = 28.325% 25% + 10% Surcharge* + 3% Cess = 28.325% 5% + 10% Surcharge* + 3% Cess = 5.665%
st
* Applicable from 1 June 2013 ∆∆∆∆∆∆
For More Information, Please visit http://www.taxbingo.com/FAQ.html To Know more about what we can do for you, please visit http://www.taxbingo.com/index.html
Page 17
Bangalore | Chennai | Coimbatore Call : 1800-1033-829 Email : [email protected]
Tax Compliance the Smart Way
Tax Compliance the Smart Way
A Publication of
TABLE OF CONTENTS
Tax Rates & Slabs………………………………….
2
Tax Rates for Capital Gains………………………
4
Deductions – Their Quantum & Conditions……
7
Allowances & Their Limits………………………..
10
Other Exemptions – Gratuity……………………..
11
Other Exemptions – Leave Encashment……….
13
Compliance Dates for Individuals……………….
15
Taxation of Dividends……………………………..
17
Join our Webinar : Tax Compliance the Smart Way Compliance is no longer optional. Smart are those who are aware of what to do - when and how. In our busy schedule, we know “TAX” only to become a monster later. Hit the road: Best practices for you to do your tax filing, tax planning and management – easily and effortlessly. In this interactive 45 minutes webinar, get all your questions answered by Experts. Read More On The Webinar
Page 1
TAX RATES & SLABS 1. For Individuals ( Male & Female ) Below 60 Years of Age Income Level
Rate of Tax
Upto 2,00,000
NIL
2,00,001 - 5,00,000
10% of the amount above 2,00,000
5,00,001 - 10,00,000
Rs. 30,000 + 20% of the total income above 5,00,000
Above 10,00,000
Rs. 1,30,000 + 30% of the total income above 10,00,000
2. For Senior Citizens ( Male & Female ) Between 61 to 80 Years of Age Income Level
Rate of Tax
Upto 2,50,000
NIL
2,50,001 - 5,00,000
10% of the amount above 2,50,000
5,00,001 - 10,00,000
Rs. 25,000 + 20% of the total income above 5,00,000
Above 10,00,000
Rs. 1,25,000 + 30% of the total income above 10,00,000
3. For Super Senior Citizens ( Male & Female ) above 80 Years of Age Income Level
Rate of Tax
Upto 5,00,000
NIL
5,00,001 - 10,00,000
20% of the total income above 5,00,000
Above 10,00,000
Rs. 1,00,000 + 30% of the total income above 10,00,000
Page 2
Please note 1. Education Cess of 3% is applicable on the Tax Rates. 2. If Income is more than Rs.1,00,00,000 [ 1 Crore ], additional Surcharge of 10% on the Tax is applicable. 3. These rates are applicable to Hindu Undivided Family, Association of Persons, Body of Individuals & Artificial judicial persons.
∆∆∆∆∆∆
Page 3
TAX RATES FOR CAPITAL GAINS
1. Asset : Shares & Mutual Funds
Description
Rate of Tax
Long Term Capital Gains ( If held for more than 12 months ) Profit for Shares listed on recognized stock exchange in India, where STT is paid
NIL
Profit for Unlisted Shares or where STT is not paid
10% without Indexation or 20% with indexation whichever is lower
Profit from Equity Oriented Mutual Funds
NIL
Profit from other than Equity Oriented Mutual Funds
10% without Indexation or 20% with indexation whichever is lower
Short Term Capital Gains ( If held for Less than 12 months ) Profit for Shares listed on recognized stock exchange in India, where STT is paid
15%
Profit for Unlisted Shares or where STT is not paid
Will be taxed as per your Tax Slab Rates
Profit from Equity Oriented Mutual Funds
15%
Profit from other than Equity Oriented Mutual Funds
Will be taxed as per your Tax Slab Rates
Page 4
2. Asset : Land, Property (Residential / Commercial), Plant, Machinery, Jewellery Description
Rate of Tax
Long Term Capital Gains ( If held for more than 36 months ) Profit from Sale of any of the above asset
10% without Indexation or 20% with indexation whichever is lower
Short Term Capital Gains ( If held for Less than 36 months ) Profit from Sale of any of the above asset
Will be taxed as per your Tax Slab Rates
∆∆∆∆∆∆
Page 5
DEDUCTIONS - THEIR QUANTUM & CONDITIONS TO AVAIL
1. Section 80C, 80CCC & 80CCD S.No
Exemption
Description
1
Premium Paid towards a Pension Plan (Self, Spouse & Children )
2
Premium Paid towards a life Insurance Policy ( Self, Spouse & Children )
3
Contribution to Public Provident Fund
4
Deposit in National savings scheme
5
Premium Paid towards a ULIP & Children )
6
Housing Loan Principal Repayment For Financial Year
7
Contribution to ELSS Mutual Fund Schemes (Eligible For Deduction Under section 80C)
8
Tuition Fee Paid for children (Max.2 Children)
9 10 11
( Self, Spouse Maximum exemption limit is Rs.1,00,000 per Financial Year
Contributions to Fixed Deposit Scheme (5 Years & above- Eligible for deduction Under Section 80 C) Post office Time Deposits (5 years & Above – Eligible for Deduction Under Section 80C) Stamp Paper Duty & Registration Charges
Condition : These investments/premiums need to be paid between 1 st April 2013 to 31 March 2014.
st
Page 6
2. Contribution to National Pension Scheme Exemption
S.No
Description
1
Incase your Employer is offering NPS & Employer is also contributing to the scheme, Section 80CCD(2) is applicable
Maximum exemption limit is Rs.1,00,000 per Financial Year Or Actual Employer contribution to NPS (restricted to 10% of your salary)
3. Section 80D Maximum Exemption
S.No
Description
1
Deduction for Medical Insurance Paid for Self, Spouse & Dependent Children
Rs.15,000 [ If Not Senior Citizen ] Rs.20,000 [ If Senior Citizen ]
2
Deduction for Medical Insurance Paid for Parents
Rs.15,000 [ If Not Senior Citizen ] Rs.20,000 [ If Senior Citizen ]
3
Preventive Costs
Upto Rs.5,000 within the limits of S.No.1 or S.No.2
Health
Check
up
Page 7
4. Other Exemptions under Chapter 6A S.no
Description
Condition
1
Sec.80 DD- Medical Treatment of a Disabled Dependent
Rs.50,000 (Normal) & Rs.1,00,000 (Severe)
2
Sec.80DDB – Medical Treatment of Specified Diseases
Rs.40,000 or Rs. 60,000 for a Senior Citizen
3
Sec.80E-Interest Paid on a Educational Loan (For self, Spouse &Dependent children)
Actual Interest Paid during the Financial Year.
4
Sec 80EE – Additional Interest exemption on Home Loans less than 25 Lakhs
If the Housing loan is less than 25 Lakhs, then the additional interest is exempted upto Rs.1,00,000
5
Sec.80G –Donations which are 100% Exempt
Actual Donation Paid during the Financial Year
6
Sec 80GG – Deductions in respect to rents paid.
Should not receive HRA from Employer or Must be Self Employed.
7
Sec 80TTA – Deduction in respect of interest on deposits in Savings account.
Applicable only for Savings account Interest Income maximum Rs.10,000
8
Sec.80U-Physical Disability for Self
If Disability 80%= Rs.1,00,000
∆∆∆∆∆∆
Page 8
ALLOWANCES & THEIR LIMITS Allowances is a fixed monetary amount paid by the employer to the employee for meeting some particular expenses. These allowances, if not used for their intended purposes are generally taxable & included in the gross salary. S.no
Description
Condition
1
House Rent Allowance
Least of 40% of Basic (50% if Metro) Or Actual HRA Received Or Rent Paid - 10% of Basic
2
Travelling Allowance
Rs.800 Per month, if transport facility is not provided by Employer - Should have taken Leave - Individual should have travelled (can take spouse/family members) - For Travel in India only LTA claimable is least of the below 1. Actual “LTA” received from your employer in the Financial Year. 2. Actual expenses incurred on travel to any place within India. 3. 40% of the total “basic “received in the Financial Year.
3
Leave Travel Allowance
4
Medical Reimbursement
Exempt upto Rs.1,250/- per month
5
Food Coupons
Exempt upto Rs.50/- per meal
Condition to avail allowance is that they should be one of your Pay Components & should appear on your Pay Slip. ∆∆∆∆∆∆ Page 9
OTHER EXEMPTIONS 1. Gratuity Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Who is eligible for Gratuity? If total period served with the current employer is 5 years or more of continues service then Gratuity is payable to any individual. What is the Amount of Gratuity payable? The amount of gratuity payable under the Act is calculated as below: a) Take your last month’s Basic Salary. If you are entitled for Dearness Allowance, please take (Basic + D.A) b) Divide the above amount by ‘26’ c) Multiply the above result by 15 d) Now multiply the result of (c) by the number of years of completed service. This is your Gratuity Entitlement. Eg: Last Month’s a) Basic + D.A = Rs. 26,000 b) 26,000 / 26 = Rs. 1,000 c) Rs. 1,000 X 15 = Rs. 15,000 d) No. of years worked = 8; Hence 15,000 X 8 = Rs. 1,20,000/- [Gratuity Entitlement] Please note: This is an example & for illustration purpose only
Page 10
Taxability of Gratuity Gratuity received by Government Employees And Employees of Local Authority Fully exempt
Gratuity received By Employees Under the Payment of Gratuity Act
Other Employees
Minimum of the following 3 limits:-
Minimum of the following 3 limits:-
1.Actual gratuity received or 2.15 days salary for every completed year, or part thereof exceeding six months or 3.Rs.10,00,000/-
1.Actual gratuity received or 2.Half months average salary of each completed year of service or 3.Rs.10,00,000/-
Meaning of salary: (i)Last drawn Basic salary plus Dearness allowance (ii)No. of days in a month to be taken as 26.
Meaning of salary: (i) Last drawn Basic salary plus DA
Page 11
2. Leave Encashment
Leave encashment is the amount payable for the employee’s leave period, depending upon the leaves to his credit and his salary at the time of termination of employment or at the time of encashing his leaves. To whom does this apply? Status of Employee
Nature of Leave Encashment
Government / Non Government employee
Leave encashment during continuity of employment
Government Employee Non Government Employee
Leave Encashment at time of retiring / leaving job.
Taxability It is chargeable to tax. However relief can be taken under Section 89. It is fully exempt from tax under Section 10 (10AA)[i] It is fully / partially exempt from tax in some cases under Section 10(10AA)[ii]
Taxability of Leave Encashment received at the time of retirement – Taxability? For the purpose of Exemption of accumulated Leave Encashment, employees are divided into two categories: i.
Government Employees (Central and State Government only): Leave encashment of accumulated leave at the time of retirement, whether on superannuation or otherwise, received by a Government employee, is fully exempt from tax.
ii.
Other Employees : Leave encashment of accumulated leave at the time of retirement, whether on superannuation or otherwise, received by other Page 12
employees (including employees of Local Authorities and PSU) is exempt to the extent of the minimum of the following amounts :
Rs. 3,00,000/Ten month’s average salary Cash equivalent of unavailed leave calculated on the basis of average salary of maximum 30 days leave for every year of actual services rendered to the employer from whose service he has retired Leave encashment actually received at the time of retirement.
Conditions for ‘Leave encashment’ 1. If the employee had received leave encashment in any one or more earlier previous year(s) also and had availed of the exemption in respect of such amount, than the limit given i.e. Rs. 3,00,000/-, shall be reduced by the amount of exemptions(s) availed earlier. 2. The exemption of Leave Encashment can also be claimed in case of resignation by an employee. Section 10(10AA) applies equally to a case of Voluntary on account of resignation. 3. Leave Salary received by an family of a government servant, who died in harness, is not taxable in the hands of the recipients. 4. Leave salary paid to legal heirs of a deceased employee in respect of privilege leave standing to the credit of such employee at the time of his/her death is an ex-gratia payment on compassionate grounds in the nature of gifts. Thus the payment is not in the nature of salary.
∆∆∆∆∆∆
Page 13
COMPLIANCE DATES FOR INDIVIDUALS
1. Due Dates for Filing Return of Income S.No
1
2
Due Date
Description Where the assessee is a person other than a company who is required to get his accounts audited under the Income Tax Act Normal Cases : Where the assessee is a person other than a company who is not required to get his accounts audited under the Income Tax Act
th
30 September
st
31 July
2. Payment of Advance Tax S.No
1
2
3
Due Date
Description 30% of Tax to be paid on Presumed income for the Financial Year Additional 30% of Tax to be paid on Presumed income for the Financial Year Balance Full Tax to be paid on Presumed income for the Financial Year
th
Before 15 September th
Before 15 December th
Before 15 March
Page 14
3. Payment & Filing of Wealth Tax Due Date
S.No
Description
1
1% of Net Worth of Assets beyond Rs.30,00,000 (Thirty Lakhs) is payable as wealth Tax.
Before March 31
2
Filing of such Wealth Tax Returns for Individuals
Before July 31
st
st
∆∆∆∆∆∆
Join our Webinar : Tax Compliance the Smart Way Compliance is no longer optional. Smart are those who are aware of what to do - when and how. In our busy schedule, we know “TAX” only to become a monster later. Hit the road: Best practices for you to do your tax filing, tax planning and management – easily and effortlessly. In this interactive 45 minutes webinar, get all your questions answered by Experts. Read More On The Webinar Page 15
TAXATION OF DIVIDENDS
While there is no tax payable by the individual on the dividends received by them, tax is deducted & paid by the Company/Mutual Fund scheme before providing you with the dividends. The quantum of tax deducted by companies / Mutual Fund schemes is as below :Description
Rate of Tax
Dividends received from Mutual Funds (Individuals/HUF) Equity Oriented Schemes (where STT is paid) Money Market & Liquid Fund Schemes Debt Schemes ( Other than Infrastructure Debt Scheme) Infrastructure Debt Scheme
NIL 25% + 10% Surcharge* + 3% Cess = 28.325% 25% + 10% Surcharge* + 3% Cess = 28.325% 25% + 10% Surcharge* + 3% Cess = 28.325%
st
* Applicable from 1 June 2013
Description
Rate of Tax
Dividends received from Shares (Individuals/HUF) Dividends received from Shares held [ Excluding Dividend Stripping ]
15% + 10% Surcharge* + 3% Cess = 16.95%
st
* Applicable from 1 June 2013
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Description
Rate of Tax
Dividends received from Mutual Funds (NRI) Equity Oriented Schemes (where STT is paid) Money Market & Liquid Fund Schemes Debt Schemes ( Other than Infrastructure Debt Scheme) Infrastructure Debt Scheme
NIL 25% + 10% Surcharge* + 3% Cess = 28.325% 25% + 10% Surcharge* + 3% Cess = 28.325% 5% + 10% Surcharge* + 3% Cess = 5.665%
st
* Applicable from 1 June 2013 ∆∆∆∆∆∆
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