Income Tax Rates, Exemptions, Deductions, Penalty, Interest, Due dates for filing Income Tax Return for FY 2012-13 (AY 2013-14) - Individuals, HUFs, AOPs, BOIs

Tax Payer/Assessee should know the below information before filing Income Tax Return for Financial Year 2012-13 (Assessment Year 2013-14)

  • Income Tax Rates
  • Exemptions
  • Deductions
  • Capital Gains
  • Penalty for not filing income tax return
  • Interest on income tax payable
  • Tax payment instructions
  • Centralized Processing Center (CPC)
  • Form-26AS


Income Tax Rates for Individuals, Hindu Undivided Familys (HUFs), Association of Persons (AOPs), Body of Individuals (BOIs)

I. TAX RATES FOR INDIVIDUALS OTHER THAN II & III BELOW
Upto 2,00,000 - Nil
2,00,000 to 5,00,000 - 10% of the amount exceeding 2,00,000
5,00,000 to 10,00,000 - Rs.30,000 + 20% of the amount exceeding 5,00,000
10,00,000 & above - Rs.1,30,000 + 30% of the amount exceeding 10,00,000

II. TAX RATES FOR INDIVIDUAL RESIDENTS AGED 60 YRS AND ABOVE & BELOW 80 YEARS (SENIOR CITIZEN)
 
Upto 2,50,000 - Nil
2,50,000 to 5,00,000 0- 10% of the amount exceeding 2,50,000
5,00,000 to 10,00,000 - Rs.25,000 + 20% of the amount exceeding 5,00,000
10,00,000 & above - Rs.1,25,000 + 30% of the amount exceeding 10,00,000
 
III. TAX RATES FOR INDIVIDUAL RESIDENTS AGED 80 YRS AND ABOVE (VERY SENIOR CITIZEN)

Upto 5,00,000 - Nil
5,00,000 to 10,00,000 - 20% of the amount exceeding 5,00,000
10,00,000 & above - Rs.1,00,000 + 30% of the amount exceeding 10,00,000
 
IV. TAX RATES FOR INDIVIDUAL RESIDENTS AGED 80 YRS AND ABOVE (VERY SENIOR CITIZEN)

Upto 5,00,000 - Nil
5,00,000 to 8,00,000 - 20% of the amount exceeding 5,00,000
8,00,000 & above - Rs.60,000 + 30% of the amount exceeding 8,00,000

No Surcharge: There is no surcharge in the case of every individual, Hindu undivided family(HUF), Association of persons and body of individuals.
Education Cess: The amount of Income-tax shall be increased by Education Cess of 3% on Income-tax.
EXEMPTIONS/DEDUCTIONS FROM SALARY

1. VOLUNTARY RETIREMENT – 10(10C)

Amount received or receivable (ie.,in instalments) by an employee on his voluntary retirement or termination of his service in accordance with any scheme of Voluntary Retirement or scheme of voluntary separation is exempt to the extent of Rs.5,00,000, provided the Voluntary Retirement Scheme is in accordance with Rule 2BA of IT Rules. However no 89(1) relief can be claimed.

2. HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A)

Read with Rule 2A of IT Rules 1962

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. Metro Cities are Delhi, Mumbai, Kolkata & Chennai.

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.
 
DEDUCTIONS FROM HOUSE PROPERTY

1. DEDUCTION U/S.23(1) : 

For let out property, amount actually paid by the owner towards taxes levied by any local authority in respect of the property is deductible from Annual value including taxes pertaining to any previous year.
 
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 is admissible.
 
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 – 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.

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 {10(38)}.

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 15% 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 subject to a ceiling of Rs.50 lakh during any financial year. (Lock-in period is 3 years)
Cost Inflation Index for the F.Y.2012-13 is 852.

STANDARD DEDUCTION 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.

Family Pension received by the widow or children or nominated heirs, as the case may be, of a deceased 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):

1. Income Tax Section 80C :

Nature of Deduction: 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, Deposit in an account under Senior Citizens Savings Scheme rules, 5 year time deposit in an account under Post Office Time Deposit Rules, 1981 etc.

2. Income Tax Section 80CCC :

Nature of Deduction:  Premium paid towards approved Pension Fund (like LIC’s Jeevan Suraksha) max. 1 lakh

3. Income Tax Section 80CCD :

Nature of Deduction:  Contribution to Central Government Pension Schemes. Upto 10% of salary with matching contribution from Government.

4. Income Tax Section 80CCE :

Nature of Deduction:  Limit on Deduction u/s.80C, 80CCC & 80CCD

Maximum overall Deductions allowed u/s. 80C, 80CCC & sub-section (1) of sec.80CCD is Rs. 1,00,000

5. Income Tax Section 80CCG :

Nature of Deduction:  Deduction in respect of investment made under an equity savings scheme(only for Resident Individual) (subject to conditions)

Amount of deduction: 50% of the amount invested subject to maximum of 25% 

6. Income Tax Section 80D :

Nature of Deduction:  

(a) Health Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of the assessee(self) or his family(spouse & dependent children) for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme or any payment made on account of preventive health check-up subject to a maximum of Rs.5,000. 
Amount of deduction: Upto Rs. 15,000

(b) Medical Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of his/her parent or parents for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme or any payment made on account of preventive health check-up subject to a maximum of Rs.5,000. 
Amount of deduction: Upto Rs. 15,000

(c) For Senior Citizens in respect of (a) & (b) above  
Amount of deduction: Upto Rs. 20,000

7. Income Tax Section 80DD :

Nature of Deduction: 

(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
 
Amount of deduction: Rs 50,000 (Rs. 1,00,000 if the disability is severe exceeding 80%)

8. Income Tax Section 80DDB :

Nature of Deduction: 

(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.  
Amount of deduction: Upto Rs. 40,000

(b) For Senior Citizens(self or dependent on whom expenditure on medical treatment is taken)  
Amount of deduction: Upto Rs. 60,000

9. Income Tax Section 80E :

Nature of Deduction:  Interest on loan taken from Financial/Charitable Institutions for Self/Spouse/Children for pursuing Higher Education (for a max. period of 8 yrs)

Amount of deduction: Actual Interest repaid

10. Income Tax Section 80G :

Nature of Deduction:  

(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.
Amount of deduction: 100% of donation

(b) Donations made to Jawaharlal Memorial Fund, PM’s Drought Relief fund, Any approved Charitable Institution/Trust, Religious Institutions, a corporation established by the Government for promoting interest of the members of a Minority Community  
Amount of deduction: 50% of donation restricted to 10% Adjusted gross total income

11. Income Tax Section 80GG :

Nature of Deduction:  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

Amount of deduction:25% of income or rent paid in excess of 10% of income or ceiling of Rs. 24,000 p.a, which ever is less.

12. Income Tax Section 80TTA :

Nature of Deduction: Deduction in respect in interest on deposits(not being time deposits) in a savings account with a banking company, a co-operative society and a post office

Amount of deduction: Rs. 10,000

13. Income Tax Section 80U :

Nature of Deduction:  Persons certified by the medical authority to be a person with disability

Amount of deduction: Rs. 50,000 (Rs. 1,00,000 in case of severe disability)

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 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.
INTEREST U/S.234A: 

Where in any financial year, 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(where tax liability exceeds Rs.10,000 after TDS) 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.

No advance tax shall be paid by an individual resident in India, who does not have any income chargeable under the head “Profits and gains of business or profession and is of the age of sixty years or more at any time during the previous year.
INTEREST U/S.234C:

Where an assessee other than a Company, who is liable to pay advance tax (where tax liability exceeds Rs.10,000 after TDS)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 of the assessment year. All Tax Audit Cases covered under section 44AB & Companies are required to file the Return of Income by 30th September of the assessment year. In the case of an assessee being a company, which is required to furnish a report referred to in section 92E(Transfer Pricing), the due date is 30th November of the assessment year.

MODE OF FILING INCOME-TAX RETURNS : 

All Individuals, HUFs & Partnership Firms who are required to get their accounts audited u/s.44AB are required to compulsorily file their income-tax return electronically with digital signature. All companies are also required to compulsorily file their income tax return electronically with Digital signature.

TAX PAYMENTS : 

Advance tax payments and Self-assessment tax payments have to be made in Challan No.280. The BSR Code and the Serial No. on the counterfoil of the challan has to be quoted in the return of income.

CENTRALIZED PROCESSING CENTRE (CPC) : 

ITR-V(where returns are efiled) has to be sent to CPC, Post Bag No.1, Electronic City Post Office, Bangalore – 560 100 by ORDINARY/SPEED POST only. For any queries on efiled return, call 1800-4252229

FORM NO.26AS

Assessees can view their Annual Tax Statement (Form No.26AS) online by logging on towww.incometaxindia.gov.in or www.tin-nsdl.com

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