zoomsays: INCOME TAX

NAME: Massu or Malana, 60
Massu's AssetsRs 30 lakh in properties aloneDay's earnings Rs 1,000 to 1,500
Begs at: Lokhandwala.

Mostly outside high-end restaurants visited by TV and film stars. Working hours: 8 pm to 3 am.Home is: A one BHK at Amboli in Andheri (west). He owns another 1 BHK nearby.Massu's 1BHK room at Amboli. Both houses are duplexes Family: Wife, two sons and a daughter-in-law share the apartment with him. Day's earnings: Rs 1000 to 1500.Assets: Rs 30 lakh in just properties.
One son makes and sells brooms, while the other hawks knick-knacks near Andheri station. He has substantial savings, but would not reveal details. Cool quotient: Massu is dressed in spotless clothes when he takes an auto-rickshaw to Lokhandwala every evening. He changes into his beggar attire near Ad Labs.
During his working hours, he has a complete sway over the area. You will never find another beggar in his vicinity. He takes an auto on his way home too. Stops at Yashraj Studios for a change of clothes.

NAME: Krishna Kumar Gite, 42
Krishna 's AssetsRs 5 lakh in properties aloneDay's earningsRs 1500 to 2000

Begs at: CP Tank, Charni RoadWorking hours: Early morning to late evening

Home is: I BHK apartment at Nallasopara, which he shares with his brother.Family: Brother, sister-in-law and their children.Day's earnings: Rs 1500 to 2000. His worth: The Nallasopara apartment is worth nearly Rs 5 lakh. Krishna claimed he has substantial savings but would not put a figure to it. "My brother manages everything," he said. Cool quotient: Claims he can't be bothered with money matters. He retires every evening to his Nallasopara home and hands over the day's earnings to his brother. "My bhabhi and brother know best what to do with the money."

NAME: Bharat Jain, 45
Bharat's AssetsRs 70 lakh in properties aloneDay's earnings Rs 2000 to 2500
Begs at: Azad Maidan and Chhatrapati Shivaji Terminus.Working hours: Early morning to late evening.

Home is: Two adjacent 1 BHK apartments in Parel, where his family stays. Bharat, however, visits home only once in a week. His family, which deals in school notebooks and other study material, has tried on many occasions to get Bharat to give up begging and join the family business. Bharat's Parel house where he stays with his family. (right) The Bhandup shop the family has rented out to a juice centreFamily: Wife, two sons -- one studying in class X and the other in class XII -- father and brother. Day's earnings: Rs 2000 to 2500.His worth: The family apartments are worth close to Rs 60 lakh. The family also has rented out a shop in Bhandup to a juice centre and gets Rs 7,000-a-month in rent. The rent is collected every month by Bharat's wife. Cool quotient: Bharat speaks impeccable English. He is soft spoken and you will never find him harassing people for alms.

Name: Haji, 26
Haji's Assets Rs 15 lakhDay's earnings Rs 1000 to 2000
Begs at: Deonar and Chembur. Usually begs near mosques andtemples.

Working hours: Flexi. Picks the best time to be at a temple or a mosque.Home is: A room at Cheetah Camp, where his mother and sister run a zari workshop, employing 15 people. Family: Mother and sister.Day's earnings: Rs 1000 to 2000 .Earnings increase mani-folds during festivals.His worth: The Cheetah Camp room worth anything between Rs 3 and 5 lakh. The zari workshop could be worth 10 lakh. The family earns a steady income from the zari business and his mother has tried every trick to get him to give up begging and join the family business. Cool quotient: He says managing the zari workshop is too muchhardwork. "I can't be bothered with all that. I like to be left alone. Also, I make a decent amount every day.

----------------<( ULTIMATE!!!)>-----------------

Name: Doesn't matter,
A Software Engineer (Double Graduate :D)S/W Enggr's
Assets: Some old C++, Java, Cryptography Books worth 10,000 INR. Rest all Assets are based on EMI's (Easy Monthly Installment) so it's the bank that owns it and not me.Day's earning: Peanuts :)
Works @ : Does't Matter , Sometimes even sitting on the Kamod.
Working Hours: Day and Night
Family: 1 intel Pentium 4 3.8 GHz CPU, 1 Flat monitor, 1 mouse and 1 keyboard.
His worth: Depends on the Tester, If tester files several critical bugs @ a time then he's useless :)
Cool Quotient: Whenever he opens his mouth he knows speaks only C, C++ and Java. Never fires anyone, only he gets fired everywhere. The only time he stays cool is when he gulps down two large shots of JD (Jack Daniel, Obvious someone else is paying for those shots :D).
So Kya soch rahe ho ... katora Uthao Or ... !!! …………….

Chakaradar
www.chakradhar.net

ASSESSMENT YEAR 2008-2009
RELEVANT TO FINANCIAL YEAR 2007-2008

I TAX RATES FOR INDIVIDUALS OTHER THAN II & III Upto 1,10,000 - Nil
1,10,000 to 1,50,000 - 10% of the amount exceeding 1,10,000
1,50,000 to 2,50,000 - Rs.4,000 + 20% of the amount exceeding 1,50,000
2,50,000 & above - Rs.24,000 + 30% of the amount exceeding 2,50,000 II TAX RATES FOR RESIDENT WOMAN BELOW 65 YEARS Upto 1,45,000 - Nil
1,45,000 to 1,50,000 - 10% of the amount exceeding 1,45,000
1,50,000 to 2,50,000 - Rs.500 + 20% of the amount exceeding 1,50,000
2,50,000 & above - Rs.20,500 + 30% of the amount exceeding 2,50,000
III TAX RATES FOR INDIVIDUAL RESIDENTS AGED 65 YRS AND ABOVE Upto 1,95,000 - Nil
1,95,000 to 2,50,000 - 20% of the amount exceeding 1,95,000
2,50,000 & above - Rs.11,000 + 30% of the amount exceeding 2,50,000

SURCHARGE ON INCOMETAX In the 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.10,00,000.

EDUCATION CESS The amount of Income-tax and Surcharge shall be further increased by Education Cess of 3% on Income-tax plus Surcharge.

EXEMPTIONS/DEDUCTIONS FROM SALARY
1. VOLUNTARY RETIREMENT – 10(10C)
Amount received or receivable (ie.,in instalments) by an employee on his voluntary retirement in accordance with any scheme of Voluntary Retirement is exempt to the extent of Rs.5,00,000, provided the VRS is in accordance with Rule 2BA of IT Rules. 2. HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A)
a) Actual HRA received : Rs.xxxx
b) Rent paid in excess of 10% of Salary : Rs.xxxx
c) 50% of Salary in Metro Cities or
40% of Salary in other cities : Rs.xxxx
Least of a), b), c) is exempt.NOTE : Here Salary means Basic Salary as well as DA if the terms of employment so provide. 3. CONVEYANCE ALLOWANCE : 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). 4. TRANSPORT ALLOWANCE : Any allowance granted to an employee to meet the expenditure for the purpose of commuting between the place of his residence and the place of his duty to the extent upto Rs.800/- per month is exempt u/s.10(14). 5. MEDICAL REIMBURSEMENT : An amount of Rs.15,000 or the actual amount reimbursed by the employer whichever is less is exempt u/s.17(2). 6. PROFESSION TAX : Profession Tax levied by the State Government is allowable as a deduction from Gross Salary provided it has been paid. STANDARD DEDUCTION U/S.16(1) IS NOT ALLOWABLE FOR A.Y.2006-07 DEDUCTIONS FROM HOUSE PROPERTY 1. DEDUCTION U/S.23(1) : For let out property, amount paid by the owner towards taxes levied by any local authority in respect of the property is deductible from Annual value(taxes pertaining to any previous years). 2. DEDUCTION U/S.24(a) : For let 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. 3. INTEREST ON BORROWED LOAN(U/S.24(b)):
FOR SELF OCCUPIED PROPERTY
a. If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1,50,000 or actual interest paid/payable whichever is less is deductible.
b. If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable whichever is less is allowed as deduction.
c. If Property is acquired or constructed with loan taken before 01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction.
d. If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable which ever is less is allowed as deduction.FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction.
ONLY OWNER OF THE HOUSE PROPERTY CAN AVAIL THE ABOVE DEDUCTIONS. CAPITAL GAINS: With effect from 01/10/2004, Long Term Capital Gains arising on sale of equity shares or unit of equity oriented fund through recognized stock exchange is exempt if such transaction is chargeable to Securities Transaction Tax (u/s.10(38)). With effect from 01/10/2004, Short Term Capital Gains arising on sale of equity shares or unit of equity oriented fund through recognized stock exchange is subject to tax at the rate of 10% if such transaction is chargeable to Securities Transaction Tax. EXEMPTION U/S.54EC:
The Capital Gain arising out of sale of long term capital asset can be invested in National Highways Authority of India, Rural Electrification Corporation Limited, within six months from the date of sale. (Lock-in period is 3 years)
For Cost Inflation Index, refer website. STANDARD DEDUCTION FOR FAMILY PENSION U/S.57(iia): An amount of Rs.15,000 or 331/3% 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.
Family Pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed forces(including para-military forces) of the union, where the death of such member has occurred in the course of operation is exempt. EXEMPTIONS – OTHER SOURCES Any income by way of Dividends from company, Income received in respect of units from the Unit Trust of India, Income received in respect of the units of a mutual fund are exempt. DEDUCTIONS FROM GROSS TOTAL INCOME (CHAPTER VIA):

Sl.No	I.T. Sec.	Nature of Deduction	Amount of deduction
1. a. b. c.	80 CCE 80 C 80 CCC 80 CCD	Life Insurance Premia, PF, PPF, NSC, ELSS, Units of Mutual Fund referred to u/s.10(23D), Tuition Fees(max. 2 Children), Repayment of Principal of Housing loan, Bank Fixed Deposit of 5 yrs period, notified Bonds of NABARD etc.Premium paid towards approved Pension Fund (like LIC's Jeevan Suraksha) max. 1 lakh.Contribution to Central Government Pension Schemes. Upto 10% of salary with matching contribution from Government.	Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs. 1,00,000
2.	80 D	(a) Medical Insurance Premium paid by Cheque for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority.(b) For Senior Citizens	Upto Rs.15,000 Upto Rs.20,000
3.	80 DD	(a) Any expenditure for Medical, Nursing & Rehabilitation incurred on dependant suffering from permanent disability including blindness, mental retardation, autism, cerebral palsy or multiple disabilities(b) Deposits under LIC, UTI's Scheme & other IRDA approved insurers for the benefit of physically handicapped dependent	Rs.50,000 with an additional Rs.25,000 if the disability is severe exceeding 80%
4.	80 DDB	(a) Actual expenditure incurred on Medical treatment of Self or dependant or a member of HUF suffering from terminal diseases like Cancer, AIDS, Renal failure etc.(b) For Senior Citizens(self or dependent on whom expenditure on medical treated is taken)	Upto Rs.40,000 Upto Rs.60,000
5.	80 E	Interest on loan taken from Financial/Charitable Institutions for Self/Spouse/Children for pursuing Higher Education (for a max. period of 7 yrs)	Actual Interest repaid
6.	80 G	(a) Donations made to National Defence Fund, Prime Minister's Relief Fund, approved Funds of reputed Educational Institutions, National Trust for Welfare of persons with Autism, Cerebral Palsy etc.(b) Donations made to Jawaharlal Memorial Fund, PM's Drought Relief fund, Any approved Charitable Institutin/Trust, Religious Institutions, a corporation established by the Government for promoting interest of the members of a Minority Community	100% of Donation 50% of Donation restricted to 10% of Adjusted Gross Total Income
7.	80 GG	Deduction in respect of rents paid, provided the assessee is not in receipt of HRA and no house is owned by self, spouse, minor child or HUF in the place of work subject to filing of declaration in Form No.10BA	25% of income or rent paid in excess of 10% of income or ceiling of Rs.24,000 p.a whichever is less
8.	80 U	Persons suffering from Permanent Physical Disability as specified in Rule 11D	Rs.50,000 (Rs.75,000 in case of severe disability)

FRINGE BENEFIT TAX (FBT) Fringe Benefit Tax is a tax for the Fringe Benefits provided to the Employee by his Employer as defined u/s.115WB(1) and (2). It means any privilege, service, facility or amenity, directly or indirectly received by present & former Employees.

Fringe Benefits	Base Value of FBT
Tour & Travel	5
Entertainment	20
Provision of Hospitality	20
Conference	20
Sales Promotion including publicity	20
Employee Welfare	20
Conveyance	20
Use of Hotel, Boarding & Lodging	20
Repairs, running, maintenance & depreciation on motor cars	20
Repairs, running, maintenance & depreciation on Aircraft	20
Use of Telephone	20
Maintenance of Guest House	20
Festival Celebrations	50
Use of Health Clubs	50
Use of any other Club facility	50
Gifts	50
Scholarships	50
Free or concessional tickets for private journey	100
Contribution by Employer to Approved Superannuation Fund	100
Employee Stock Option

Fringe Benefit Tax(FBT) is calculated @ 30%(+SC+EC) on the percentage value of Fringe Benefits. TAX ON FRINGE BENEFITS:The tax on fringe benefits provided by their employer to their employee as defined u/s.115WB(1) and (2) is payable by the EMPLOYER.PENALTY U/S.271F: If a person who is required to furnish a return of income as required under section 139(1) or by the proviso to 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. INTEREST U/S.234A: 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 percent for every month or part of a month comprised in the period commencing on the date immediately following the due date. INTEREST U/S.234B: 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 percent for every month or part of a month comprised in the period from the 1st day of April following the financial year. INTEREST U/S.234C: Where an assessee other than a Company, who is liable to pay advance tax under section 208 has failed to pay such tax or,
1) 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 at the rate of one 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.
2) 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 percent on the amount of the shortfall from the tax due on the returned income. DUE DATES FOR FILING RETURN OF INCOME : All Individuals/HUF/Firms deriving Income from Salary, House Property, Capital Gains, Business or Other Sources and not covered under section 44AB are required to file the Return of Income by 31st July. All Tax Audit Cases covered under section 44AB, Company returns are required to file the Return of Income by 31st October. PERMANENT ACCOUNT NUMBER: Every assessee is required to obtain 10 Alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence. PAN can be obtained by applying in new Form No.49A at the designated Service Centres of UTITSL OR NSDL(Log on to our website). PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates false number, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000.
To Know Your PAN, visit our website.
For PAN Grievances : UTITSL – e-mail – isw.bangalore@utitsl.co.in
NSDL - e-mail – tininfo@nsdl.co.in TAX PAYMENTS : Advance tax payments and Self-assessment tax payments have to be made in Challan No.280. Please obtain counterfoil of challan containing Challan Identification Number (CIN) from the Bank and enclose copy of the same with the return and quote CIN in the return. This brochure should not be construed as an exhaustive statement of law. In case of doubt, reference should always be made to the relevant provisions of Income Tax Act, Rules or Notifications.

This brochure should not be construed as an exhaustive statement of law. In case of doubt, reference should always be made to the relevant provisions of Income Tax Act, Rules or Notifications.

Chakradhar

www.chakradhar.net

zoomsays

Friday, January 18, 2008

TAX STRUCTURE IN INDIA

Wednesday, January 16, 2008

Ways to lead a life ...

INCOME TAX RULES: Very Useful - INDIA

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