S.N.

Particulars

Threshold Limits

A.

Basic Exemption

1.

Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person

Rs. 2,50,000

2.

Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year)

Rs. 3,00,000

3.

Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen

(who is at least 80 Years of age at any time during the previous year)

Rs. 5,00,000

3C

Surcharge shall be charged at the rate of 15% of income-tax if net income is above Rs. 1 crore but it does not exceed Rs. 2 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)

Rs. 1 Crore

3D

Surcharge shall be charged at the rate of 25% of income-tax if net income is above Rs. 2 crore but it does not exceed Rs. 5 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)

Rs. 2 crore

3E

Surcharge shall be charged at the rate of 37% of income-tax if net income is above Rs. 5 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)

Rs. 5 crore

5.

Surcharge shall be charged at the rate of 7% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 12% if net income exceeds Rs. 10 Crores in case of domestic company (Subject to Marginal relief)

Rs. 1 Crore / Rs. 10 Crore

6.

Surcharge shall be charged at the rate of 2% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 5% if net income exceeds Rs. 10 Crores in case of foreign company (Subject to Marginal relief)

Rs. 1 Crore / Rs. 10 Crore

S.N.

Particulars

Section

Threshold Limits (for exemptions and others)

B.

Under the head Salaries

1.

Entertainment Allowance (Exempt in case of Government employee only)

16(ii)

Least of the following is exempt from tax:

a) Rs 5,000

b) 1/5th of salary (excluding any allowance, benefit or perquisite)

c) Actual entertainment allowance received

2.

Encashment of unutilized earned leave at the time of retirement by an employee (other than Government employee)(Subject to certain conditions)

10(10AA)

Least of the following shall be exempt from tax:

a) Amount actually received

b) Unutilized earned leave** X Average monthly salary

c) 10 months Average Salary**

d) Rs. 25,00,000

*While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer

**Average salary = Average Salary*** of last 10 months immediately preceding the retirement

***Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission

3.

Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947 (Subject to certain conditions).

10(10B)

Least of the following shall be exempt from tax:

a) an amount calculated as per 25F(b) of the Industrial Disputes Act, 1947;

b) Rs. 5,00,000; or

c) Amount actually received.

4.

Death -cum-Retirement Gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).

10(10)

Least of following amount is exempt from tax:

1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.

2. Rs. 20,00,000

3. Gratuity actually received.

*7 days in case of employee of seasonal establishment.

** Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite

5.

Death -cum-Retirement Gratuity received by other employees who are not covered under Gratuity Act, 1972 (other than Government employee)(Subject to certain conditions).

10(10)

Least of following amount is exempt from tax:

1. 1/2 X Average Salary* X Completed years of service

2. Rs. 20,00,000

3. Gratuity actually received.

*Average salary = Average Salary of last 10 months immediately preceding the month of retirement

**Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission

6.

Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions

10(10C)

Least of the following is exempt from tax:

1) Actual amount received as per the guidelines i.e. least of the following

(a)  3 months salary for each completed year of services

(b)  Salary at the time of retirement X No. of months of services left for retirement; or

2) Rs. 5,00,000

7.

Children Education Allowance

10(14) read with Rule 2BB

Up to Rs. 100 per month per child up to a maximum of 2 children.

8.

Hostel Expenditure Allowance

10(14) read with Rule 2BB

Up to Rs. 300 per month per child up to a maximum of 2 children.

9.

Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty

10(14) read with Rule 2BB

Up to Rs. 3,200 per month for blind and handicapped employees

10.

Transport Allowance to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.

Sec. 10(14) read with Rule 2BB

Amount of exemption shall be lower of following:

a) 70% of such allowance; or

b) Rs. 10,000 per month.

11.

Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)

10(45)

Up to Rs.14,000 per month for defraying the service of an orderly and for meeting expenses incurred to wards secretarial assistance an contract basis.

12.

Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.

13.

Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.

14.

Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Odisha

Sec. 10(14) read with Rule 2BB

Up to Rs. 200 per month

15.

Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Up to Rs. 2,600 per month

16.

Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Up to Rs. 1,000 per month

17.

Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Up to Rs. 3,900 per month

18.

Underground Allowance to employees working in uncongenial, unnatural climate in underground mines (Subject to certain conditions)

Sec. 10(14) read with Rule 2BB

Up to Rs. 800 per month

19.

High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet)

b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)

20.

Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Up to Rs. 4,200 per month

21.

Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)

Sec. 10(14) read with Rule 2BB

Up to Rs. 3,250 per month

In case of normal tax regime

• Up to Rs. 50,000

In case of new tax regime under section 115BAC

• Up to Rs. 75,000

23.

Tax on contribution to an approved superannuation fund by the employer in respect of the employee

17(2)(vii)

To the extent it exceeds Rs.1,50,000 per year (not taxable if employer's contribution is Rs. 1 lakh or less per year)

24.

Expense incurred by employer on providing educational facility to the children of the employee shall be exempt in the hands of an employee

Rule 3

Up to Rs.1,000 per month per child

25.

Interest on loan received from employer at concessional rate of interest couldn’t be taxed as perquisite in the hands of the employee

Rule 3

If aggregate amount of such loan during the relevant previous year does not exceed Rs.20,000

26.

Free meal provided to employees during office hours by the employer couldn’t be taxed as perquisite in the hands of the employees

Rule 3

If cost of such meal does not exceed Rs.50 per meal

27.

Value of any gift received by the employee or by member of his household from employer is exempt in the hands of the employee

Rule 3

Up to the extent of Rs.5,000 if received in kind

C.

Under the head Income from House Property

1.

Standard deductions

24(a)

30% of annual value

2.

Interest incurred on borrowed capital for construction/ acquisition of self-occupied house property (Subject to certain conditions)

Note:

With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 2,00,000.

24(b)

Up to Rs. 2,00,000

Interest incurred on borrowed capital for re-construction, repair or renewal of self-occupied house property (Subject to certain conditions)

Note:

With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 30,000.

D.

Under the head Profits and Gains of Business or Profession

1.

Deduction under section 32AC is available if actual cost of new plant and machinery acquired and installed by a manufacturing company  after 31-03-2013 but before 01-04-2015 exceeds Rs. 25/100 Crores, as the case may be (Subject to certain conditions).

32AC

15% of actual cost of new asset acquired and installed (if it exceeds Rs. 25 Crores/100 Crores, as the case may be)

2.

The agricultural extension project shall be considered for approval under section 35CCC if expenditure (not being expenditure in the nature of cost of any land or building) expected to be incurred on such project exceeds the threshold limit (Subject to certain conditions)

Rule 6AAD read with section 35CCC

Rs. 25,00,000

3.

Compulsory maintenance of prescribed books of account - Specified Profession (Subject to certain conditions and circumstances)

44AA

Persons carrying on specified profession

4.

Compulsory maintenance of books of account - Other business or profession

(Subject to certain conditions and circumstances)

44AA

 1)  If the total sales, turnover or gross receipts exceeds Rs 10,00,000 in any one of the three years immediately preceding the previous year; or

 2)  If the income from business or profession exceeds Rs 1,20,000 in any one of the three years immediately preceding the previous year.

Note: Individuals or HUFs shall be required to maintain books of account only when either their gross turnover/gross receipts exceed Rs 2,50,0000 or their income from business or profession exceed Rs 2,50,000.

5.

Compulsory Audit of books of accounts (Subject to certain conditions and circumstances)

44AB

1) If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business; or

Note:

 a) Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores.

 b) Threshold limit of Rs. 1 crore shall be increased to Rs. 10 crore in case where the cash receipt and payment made during the year does not exceed 5% of total receipt or payment the business

2) If gross receipts exceeds Rs. 50 Lakhs in any previous year, in case of profession.

6.

Limit on payments in cash for expenses/ liability (Subject to certain conditions and exceptions)

40A(3)

1) Rs. 10,000 (total payment to a person in a day)

2) Rs. 35,000 (total payment to a person in a day) for payments made for plying, hiring or leasing of goods carriage.

7.

Computation of income from eligible business on presumptive basis under Section 44AD (Subject to certain conditions).

44AD

Presumptive income of eligible business shall be 8 % of gross receipt or total turnover (if turnover of eligible business does not exceed Rs. 2 crore).

Note:

(1) Presumptive income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system or through such other electronic mode as may be prescribed

(2) The turnover limit of Rs. 2 crores shall be increased to Rs. 3 crores if the amount or aggregate of the amount of cash received during the previous year does not exceed 5% of the total turnover or gross receipts of such year. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash.

Presumptive income shall be or through such other electronic mode as may be prescribed 50% of total gross receipt if the total gross receipts from such profession do not exceed Rs. 50 lakh in a previous year.

Note: if the amount of cash received during the previous year does not exceed 5% of the total gross receipt of such year then the threshold limit for total gross receipt shall be taken as Rs. 75 lakh instead of Rs. 50 lakh. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.

8.

Presumptive income from business of plying, hiring or leasing of goods carriage if assessee does not own more than 10 goods carriage.

44AE

For Heavy Goods Vehicle:

Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by assessee

For Other Goods Vehicle:

Rs. 7,500 for every month or part of a month during which the goods carriage is owned by assessee

Note: 'Heavy goods vehicle' means goods carriage vehicle the gross vehicle weight of which exceeds 12,000 kilograms.

9.

Alternate Minimum Tax (in case of Individual, HUF, AOP or BOI)

(Subject to certain conditions)

115JC

18.5% of adjusted total income (plus surcharge and education cess) provided adjusted total income exceeds Rs. 20,00,000.

Note:

1) Rate of AMT is 9% in case of a unit located in an IFSC and derives income solely in convertible foreign exchange.

2) Rate of AMT is 15% in case of a co-operative society

10.

Applicability of Domestic Transfer Pricing, if aggregate value of transactions with associated enterprises during the previous year exceeds the threshold limit

92BA

Rs. 20 Crores

11.

Every person who has entered into an international transaction or a specified domestic transaction shall keep and maintain the specified information and documents

Rule 10D read with section 92D

If aggregate value, as recorded in the books of account, of international transactions entered into by him exceeds Rs.1,00,00,000

E.

Under the head Income from Capital Gains

1

Share or interest ('assets') in a foreign company or entity shall be deemed to be situated in India, if such assets derives, directly or indirectly, its value substantially from the assets located in India. Provided the value of such assets, on the specified date, exceeds the prescribed limit.

9(1)(i)

If the value of assets:

a) Exceeds Rs. 10 crores; and

b) Represents at least 50% of value of all assets owned by the company or entity.

2.

Limit on investment made by an assessee in bonds of NHAI or REC etc., from long term capital gains arising from transfer of an immovable property (being Land or Building or both) during the financial year, for claiming exemption (Subject to certain conditions)

54EC

Rs. 50,00,000 during the financial year in which immovable property is transferred and in subsequent financial year

• No tax if long-term capital gain doesn't exceed Rs. 1,00,000 (if transfer takes place before 23-07-2024)

• No tax if long-term capital gain doesn't exceed Rs. 1,25,000 (if transfer takes place on or after 23-07-2024)

Note: The aggregate threshold limit shall be Rs. 1,25,000 for the Previous Year 2024-25

F.

Under the head Income from Other Sources

1.

Gifts without consideration/ inadequate consideration from non-relatives (Subject to certain conditions)

56

Gift up to Rs. 50,000 is not chargeable to tax

2.

Transfer of immovable property for inadequate consideration.

56

If stamp duty value exceeds higher of following amount:

 a)  Rs. 50,000; and

 b)  Amount equal to 10% of the consideration.

3.

Sum received by a family member of a person who died due to Covid-19

56(2)(x)

Sum received upto Rs. 10 lakh from any person (other than employer of the deceased) is not chargeable to tax

4.

Standard Deduction for family pension

57(iia)

In case of normal tax regime:

• 33.33% of Family Pension subject to maximum of Rs. 15,000

In case of new tax regime under section 115BAC

• 33.33% of Family Pension subject to maximum of Rs. 25,000

G.

Trust

1.

Activity for advancement of any other object of general public utility shall be considered as charitable activity

2(15)

If activity is undertaken in course of carrying out of object of general public utility and aggregate receipts from such activity do not exceed 25% of total receipts of financial year.

2.

Anonymous donation to be taxed at the rate of 30%

115BBC

To the extent it exceeds 5% of total donations received by assessee or Rs.1,00,000, whichever is higher

3.

Annual receipts should not exceed the threshold limit for the purposes of claiming exemption under section 10(23C)(iiiad)/(iiiae)

Rule 2BC

Rs.1 Crore

4.

Maximum amount which an electoral trust can spend for managing its affairs

Rule 17CA

5% of the total contributions received in a year subject to an aggregate limit of Rs. 5,00,000 in the first year of incorporation and Rs.3,00,000 in subsequent year

I.

Deductions under Chapter VI-A

1.

Deduction to an individual and HUF for amount invested in following ways:

1. Life insurance premium for policy:

a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee

b) in case of HUF, on life of any member of the HUF

2. Sum paid under a contract for a deferred annuity:

a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)

b) in case of HUF, on life of any member of the HUF

3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]

4. Contributions by an individual made under Employees’ Provident Fund Scheme

5. Contribution to Public Provident Fund Account in the name of:

a) in case of individual, such individual or his spouse or any child of such individual

b) in case of HUF, any member thereof

6. Contribution by an employee to a recognized provident fund

7. Contribution by an employee to an approved superannuation fund

8. Subscription to any notified security or notified deposit scheme of the Central Government

For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction.

Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.

9. Subscription to notified savings certificates[National Savings Certificates(VIII Issue)]

10. Contribution for participation in unit-linked Insurance Plan of UTI:

a) in case of an individual, in the name of the individual, his spouse or any child of such individual

b) in case of a HUF, in the name of any member thereof

11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund:

a) in the case of an individual, in the name of the individual, his spouse or any child of such individual

b) in the case of a HUF, in the name of any member thereof

12. Subscription to notified deposit scheme or notified pension fund setup by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]

13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children

14. Certain payments for purchase/construction of residential house property

15. Subscription to notified schemes of(a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b)authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both

16. Sum paid towards notified annuity plan of LIC or other insurer

17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)

18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)

19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions

20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above.

21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.

22. Subscription to notified bonds issued by the NABARD.

23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)

24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)

25. Contribution to specified account of pension scheme referred to in section 80CCD in case of central Government employee

80C

Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))

2.

Contribution to certain specified Pension Funds of LIC/other insurer by an Individual (Subject to certain conditions).

80CCC

Up to 1,00,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))

3.

Contribution to notified Pension Scheme (NPS) by an Individual (Subject to certain conditions).

Note:-

1. Deduction under section 80CCD(2) on account of contribution made by the employer to a pension scheme is not subjected to ceiling limit of Rs. 1,50,000 as provided under section 80CCE.

2. Addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under section 80CCD(1), i.e., limit of 10% of salary/gross total income

80CCD

Amount contributed to pension scheme or 10% of salary/gross total income*, whichever is less (subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE) shall be allowed as deduction under section 80CCD(1).

Additional deduction to the extent of Rs. 50,000 shall also be available to the assessee under section 80CCD(1B). The additional deduction is not subjected to ceiling limit of Rs. 1,50,000 as provided under section 80CCE.

Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 14% of salary if contribution is made by Central/State Government and 10%** of salary in case of others.

*10% or 14% as the case may be, of salary in case of employees otherwise 20% of gross total income.

** 14% in case income of assessee is chargeable to tax under section 115BAC

4.

Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person*. An individual can also made payment to the Central Government health scheme and/or on account of preventive health check-up.

*specified person means

- In case of Individual- Self, Spouse, dependent children or parents

- In case of HUF- Any member thereof

Note:-

1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000.

2. Payment on account of preventive health check-up may be made in cash.

3. Within overall limit, deduction shall also be allowed upto Rs. 50,000 towards medical expenditure incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person.

4. "Senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

80D

In case of Individual, amount paid:

a) For self, spouse and dependent children: Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen)

b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 50,000 if parent is a senior citizen)

In case of HUF, premium up to Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen) paid to insure any member of the family.

5.

Deduction allowed to resident Individual and HUF for:

a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability

b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company  for the maintenance of a dependent, being a person with disability

(Subject to certain conditions).

80DD

Rs. 75,000 (Rs. 1,25,000 in case of severe disability)

6.

Expenses actually paid by resident individual and HUF for medical treatment of specified diseases and ailments of:

a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters

b) In case of HUF: Any member of the family who is wholly dependent upon the family

(Subject to certain conditions).

80DDB

Up to Rs. 40,000 (Rs. 1,00,000 in case of senior citizen)

7.

Interest payable on loan taken up to Rs. 35 lakhs by an individual taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value does not exceed Rs. 50 lakhs (Subject to certain conditions).

80EEA

Deduction of up to Rs.50,000 towards interest on loan.

8.

Interest payable on loan taken by an individual taxpayer, who is not eligible to claim deduction under 80EE, from any financial institution, sanctioned during the period beginning on 01-04-2019 and ending on the 31-03-2022; for the purpose of acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs (Subject to certain conditions).

80EEA

Deduction up to Rs.1,50,000 towards interest on loan.

8A.

Interest payable on loan taken by an individual taxpayer from any financial institution, sanctioned during the period beginning on 01-04-2019 and ending on the 31-03-2023; for the purpose of purchase of an electric vehicle (Subject to certain conditions).

80EEB

Deduction up to Rs.1,50,000 towards interest on loan.

9.

Rent paid by an individual for furnished/unfurnished residential accommodation if he is not receiving any HRA (Subject to certain conditions)

80GG

Least of the following shall be exempt from tax:

a) Rent paid in excess of 10% of total income*;

b) 25% of the Total Income; or

c) Rs. 5,000 per month.

Total Income = Gross total income minus capital gains, short term capital gains under section 111A, deductions under section 80C to 80U (other than 80GG) and income under section 115A

10.

Deduction in respect of certain donations for scientific, social or statistical research or rural development programme or for carrying out an eligible project or National Urban Poverty Eradication Fund shall be allowed (Subject to certain conditions)

80GGA

100% of donations or contributions made.

No deduction shall be allowed if contribution is paid in cash in excess of Rs.10,000

Deduction from profit and gains derived by an eligible start-up from a business involving innovation, development, deployment or commercialization of new products, process or services driven by technology or intellectual property rights. Deduction in respect of eligible start-up (subject to certain conditions)

Eligible start-up means a company or a limited liability partnership, incorporated on or after 1/4/2016 but before 1/4/2025 and holds a certificate from Inter-Ministerial Board of Certification.

100% deduction is available for any 3 consecutive assessment years out of 10 years beginning from the year in which the eligible start-up is incorporated.

However, total turnover of eligible start-up should not exceed Rs. 100 Crore in previous year in which deduction under section 80-IAC is claimed.

11.

Royalty income of resident individual - authors of certain specified category of books other than text books

80QQB

Least of the following shall be exempt from tax:

a) In case of Lump sum payment - Amount of royalty income subject to maximum of Rs. 3,00,000

b) In other cases - amount of such income subject to maximum of 15% of value of books sold during the previous year.

12.

Royalty in respect of patents registered on or after 01.04.2003 earned by resident individual (subject to certain conditions)

80RRB

100% of royalty subject to maximum of Rs. 3,00,000

13.

Interest on deposits in saving account of an Individual or HUF (except senior citizen) with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)

80TTA

100% of amount of such income subject to maximum of Rs. 10,000

15.

A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]

80U

Rs. 75,000 (Rs. 1,25,000 in case of severe disability)

16.

Maximum amount of deduction available to specified co-operative societies if it is engaged in activities in addition to the prescribed activities (Subject to certain conditions)

80P

Rs.1,00,000 in case of consumer co-operative society or Rs.50,000 in any other case

17.

Deduction available to a co-operative society, (not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power,) in respect of income by way of interest on securities or any income from house property

80P

If its gross total income does not exceed Rs.20,000

J.

Deduction of tax at source and Advance tax

1.

No deduction of tax at source from salaries

192

If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens)

1A

No TDS from payment of provident fund account of an employee

192A

If amount paid is less than Rs. 50,000.

2.

No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF

193

If amount paid or payable during the financial year does not exceed Rs. 5,000

3.

No TDS from interest on 8% Saving (Taxable) Bonds 2003, 7.75% Savings (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security  paid to a resident persons

193

If amount paid or payable during the financial year does not exceed Rs. 10,000

4.

No TDS from dividend paid by any mode other than cash to resident persons

194

If amount paid or payable during the financial year does not exceed Rs. 5,000

5.

No TDS from interest (other than on interest on securities) paid by a banking company, co-operative bank or specified public company on time deposits

Note:

With effect from 01.06.2015, tax shall be deducted from interest credited or paid by a co-operative bank to its member

194A

If amount paid or payable during the financial year does not exceed Rs. 40,000 (Rs. 50,000 in case of Senior Citizens)

Note:

a) With effect from 01.06.2015, time deposit shall also include recurring deposit. Therefore, tax shall be deduction from payment of interest on recurring deposit if it exceeds the threshold limit of Rs. 40,000/50,000.

b) The threshold limit of Rs. 40,000/50,000 shall be computed with reference to the income credited or paid by a banking company or co-operative bank (and not by individual branch thereof) which has adopted core banking solutions ('CBS').

6.

No TDS from payment of interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004

194A

If amount paid or payable during the financial year does not exceed Rs. 50,000

7.

No TDS from interest other than on securities (in any other case)

194A

If amount paid or payable during the financial year does not exceed Rs. 5,000

8.

No TDS from interest on compensation awarded by payment of Motor Accident Claims Tribunal

194A

If amount paid during the financial year does not exceed Rs. 50,000

Note:

With effect from 01.06.2015, no tax shall be deducted at the time of credit of interest on compensation awarded by the Motor Accidents Claims Tribunal.

9.

No TDS from Lottery / Cross Word Puzzles

194B

If amount paid or payable during the financial year does not exceed Rs. 10,000

10.

No TDS from winnings from horse races

194BB

If amount paid or payable during the financial year does not exceed Rs. 10,000

11.

No TDS from sum paid or payable to contractor

194C

a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000

b) If sum paid or payable to contractor in aggregate does not exceed Rs. 1,00,000 during the financial year

12.

No TDS from insurance commission paid or payable during the financial year

194D

If amount paid or payable during the financial year does not exceed Rs. 15,000

13.

No TDS from payments made out of deposits under NSS

194EE

If amount paid or payable during the financial year does not exceed Rs. 2,500

14.

No TDS from commission paid on lottery tickets

194G

If amount paid or payable during the financial year does not exceed Rs. 15,000

15.

No TDS from payment of commission or brokerage

194H

If amount paid or payable during the financial year does not exceed Rs. 15,000. Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees.

16.

No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery

194-I

If amount paid or payable during the financial year does not exceed Rs. 2,40,000

17.

No TDS from payment of consideration for purchase of an immovable property (other than agriculture land)

194-IA

If consideration of immovable property and its stamp duty value doesn’t exceed Rs. 50,00,000

No TDS from payment of rent in respect of any land or building.

Note:

Other than the rent covered by section 194-I

194-IB

If amount paid or payable during the financial year does not exceed Rs. 50,000

18.

No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration

194J

If amount paid or payable during the financial year does not exceed Rs. 30,000

19.

No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land)

194LA

If amount paid or payable during the financial year does not exceed Rs. 2.50

No tax shall be deducted under this provision in the following circumstance:

• If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year.

• If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means:

(a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred;

(b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.

20.

Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax

206A

If amount paid or payable during the financial year does not exceed:

a) Rs.40,000 where payer is banking company or co-operative society;

b) Rs.5,000 in other case

22.

A person (not being a banking company) carrying on any business or profession in India may file an application for certificate authorizing receipt of interest and other sums without deduction of tax under section 195 (Subject to certain conditions).

Rule 29B

If he has been carrying on business or profession in India continuously for a period of not less than 5 years immediately preceding the date of the application and the value of the fixed assets in India of such business or profession as shown in his relevant books for the earlier year exceeds Rs.50,00,000

23.

Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish information.

Rule 37BB

In Part A of Form No. 15CA if the amount of payment doesn't exceed Rs. 5,00,000 in aggregate during the financial year

In Part B of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate under section 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.

In Part C of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate in Form No. 15CB has been obtained from a Chartered Accountant.

In Part D of Form No. 15CA. However, there is no reporting requirement in following cases:-

 i) If payment is made by an individual and it is permissible under Liberalized Remittance Scheme.

ii)  If remittance is covered under the Specified list

24.

Liability for payment of advance tax

208

Taxpayer is liable to pay advance-tax if his advance tax liability exceeds Rs. 10,000

K.

Filing of Return and Assessment

1.

Every person being an Individual, HUF, AOP, BOI or AJP shall be required to file return of income if his total income before claiming exemption or deduction under 10(38), 10A, 10B, 10BA, 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB or Chapter VI-A, exceeds maximum exemption limit.

139 read with Rule 12

Maximum exemption limit is as follows:-

1. In case of super senior citizen – Rs. 5,00,000

2. In case of senior citizen – Rs. 3,00,000

3. In case of any other person– Rs. 2,50,000

4.

Issue of notice under section 148 to re-open assessment within 3 years and 3 months from the end of the relevant assessment year [applicable from 01-09-2024]

149

If escaped income is less than Rs. 50 lakh

7.

Issue of notice to show cause under section 148A within 5 years from the end of the relevant assessment year [applicable from 01-09-2024]

149

If escaped income is Rs. 50 lakh or more

8

The president or any other members of ITAT may dispose of any case which has been allotted to the Bench of which he is a member and which pertains to an assessee whose total income as computed by the AO does not exceed the prescribed sum.

255

Rs. 50,00,000

L.

Penalties

1.

Penalty for failure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3)

234E

Rs. 200 for every day during which failure continues but not exceeding

tax deductible/collectible

2.

Penalty for failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA

271A

Rs. 25,000

Penalty, if during any proceedings under the Act, it is found that in the books of accounts maintained by assessee, there is:

a) A false entry; or

b) Any entry relevant for computation of total income of such person has been omitted to evade tax liability.

Violation of the provisions of 21st proviso to section 10(23C) or section 13(1)(c) pertaining to passing of unreasonable benefits to trustees or specified person

(a) For the first violation: to the extent of income applied by the institution for the benefit of any interested party referred to in section 13(3);

(b) For any violation in subsequent years: twice the amount of such income so applied (“double penalty”).

4.

Penalty for failure to get accounts audited or furnishing a report of audit as required under section 44AB

271B

One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, whichever is less

5.

Penalty for failure to furnish a report from an accountant as required by section 92E

271BA

Rs. 1,00,000

Penalty to be levied if a person received an amount of Rs. 3 lakh or more otherwise than by an account payee cheque or bank draft or use of electronic clearing system

271DA

Amount of such receipt

Penalty for not providing facility for accepting payment through prescribed electronic modes of payment by a person carrying on business if total sales, turnover or gross receipts from business exceeds Rs. 50 crore.

271DB

Rs. 5,000 rupees for every day of default

7.

Penalty for failure to furnish statement of financial transactions or reportable account as required under section 285BA(1)

271FA

Rs. 500 per day of

Default

8.

Penalty for failure to furnish statement of financial transactions or reportable account within the period specified in notice issued under Section 285BA(5)

271FA

Rs. 1,000 per day of default

8A.

Penalty for furnishing inaccurate particulars in Statement of financial transactions or reportable account.

271FAA

Rs. 50,000

9.

Penalty to be levied if Investment Fund failed to furnish a statement or information or document as required under Section 9A(5)

271FAB

Rs. 5,00,000

10.

If shares of a foreign company derives its value substantially from assets located in India, and such company holds such assets in India through an Indian concern, then, such Indian concern shall furnish the prescribed information to the tax authority in accordance with Section 285A. In case of failure, penalty shall be levied.

271GA

a) 2% of value of transaction, if such transaction results in transferring right of mgmt. or control in relation to Indian concern;

b) Rs. 5,00,000 in any other case

Rs. 5,000 per day (If period of failure is up to 30 days)

Rs. 15,000 per day (if period of failure continues beyond 30 days)

11.

Penalty for failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement

271H

Rs. 10,000 but may extend to Rs.1,00,000

12.

Penalty shall be levied if a person fails to furnish or furnishes inaccurate information in Form 15CA & 15CB as required under Section 195(6).

271-I

Rs. 1,00,000

Penalty shall be levied if an accountant or a merchant banker or a registered valuer has furnished incorrect information in any report or certificate.

271J

Rs. 10,000 for each incorrect report or certificate

Penalty of default in submission of statement/certificate prescribed under section 35/Section 80G

271K

Rs. 10,000 to Rs. 1 lakh

13.

Penalty for refusal or failure to :

a) answer questions

b) sign statement

c) attend to give evidence or produce books of account, etc., incompliance with summons under section 131(1)

d) comply with notice u/s 142(1)/143(2) or failure to comply with direction issued u/s 142(2A)

272A(1)

Rs. 10,000 for each failure/default

14.

Penalty for failure to:

a) furnish requisite information in respect of securities as required under section 94(6);

b) give notice of discontinuance of business or profession as required under section 176(3);

c) furnish in due time returns, statements or certificates, deliver declaration, allow inspection, etc., under sections 133, 134, 139(4A),139(4C), 192(2C), 197A, 200(2A), 203, 206,206C, 206C(3A), 206C(1A) and 285B;

d) deduct and pay tax under section226(2)

e) file a copy of the prescribed statement within the time specified in section 200(3) or the proviso to section 206C(3) (up to 1-7-2012)

f) file the prescribed statement within the time specified in section206A(1)

272A(2)

Rs. 500 for every day during whichthe failure continues

15.

Penalty for failure to comply with section 133B

272AA(1)

Not exceeding Rs. 1,000

16.

Penalty in case of default in complying with the provisions of section 139A relating to PAN or Aadhar, i.e., failure to obtain, quote, or authenticate PAN or Aadhar, as the case may be.

The Finance (No. 2) Act, 2019 has provided for interchangeability of Aadhar with PAN. Hence, consequential amendments have been made in penal provisions also.

272B

Rs. 10,000 per default

17.

Penalty for failure to comply with section 203A

272BB(1)

Rs. 10,000 for each failure/default

18.

Penalty for quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2)

272BB(1A)

Rs. 10,000

19.

Income-tax officer can impose penalty only with the prior approval of Joint Commissioner

274

If amount of penalty exceeds Rs. 10,000

20.

Assistant Commissioner or Deputy Commissioner can impose penalty only with the prior approval of Joint Commissioner

274

If amount of penalty exceeds Rs. 20,000

21.

Commissioner or Principal Commissioner can reduce or waive penalty only with the previous approval of Principal Chief Commissioner or Chief Commissioner or Principal Director-General or Director-General

273A

If amount of penalty exceeds Rs. 1,00,000

M.

Prosecution

1.

Prosecution of 6 months to 7 years with fine for willful attempt to evade tax, penalty or interest or under reporting of income

276C(1)

If tax sought to be evaded exceeds Rs. 25 Lakhs

2.

Prosecution of 6 months to 7 years with fine for willful failure to furnish return of income under section 139(1), or furnish return of income under section 139(8A) or, in response to notice under section 142(1)(i) or section 148 or section 153A

276CC

If tax sought to be evaded exceeds Rs. 25 Lakhs

3.

Prosecution of 6 months to 7 years with fine for furnishing false statement in verification or delivery of false account, etc.

277

If tax sought to be evaded exceeds Rs. 25 Lakhs

4.

Prosecution of 6 months to 7 years with fine for abetment of false return, account, statement or declaration relating to any income chargeable to tax

278

If tax sought to be evaded exceeds Rs. 25 Lakhs

N.

Fees

Fees for failure to furnish return of income within the time prescribed under section 139(1)

234F

2.

Fee for default in submission of statement/certificate prescribed under section 35/Section 80G

234G

Rs. 200 per day

2A.

Fee for default in intimating the Aadhaar Number

234H

a) Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and

b) Rs. 1,000, in all other cases.

3.

Fees for filing of appeal before CIT(A)

249

a) Rs.250 if total income as computed by AO is up to Rs. 1 lakh

b) Rs. 500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs

c) Rs.1,000 if total income as computed by AO is more than Rs. 2 lakhs

d) Rs.250 in any other case

4.

Fees for filing of appeal before CIT(A)

253

a) Rs.500 if total income as computed by AO is up to Rs. 1 lakh

b) Rs.1,500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs

c) 1% of assessed income subject to maximum of Rs. 10,000 if total income as computed by AO is more than Rs. 2 lakhs

d) Rs. 500 in any other case

5.

Fees for filing of application before CIT for revision of order under section 264

264

Rs.500

6.

Fees for filing application for advance ruling

245Q

Rs.10,000 on such fees as may be prescribed, whichever is higher

7.

Fees for filing application before settlement commission

Rule 44C

Rs. 500

O.

PAN

1.

Every person carrying on any business or profession to apply for PAN if total sales, turnover or gross receipts in any previous exceeds the threshold limit

139A

Rs.5,00,000

1A.

Every non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds the threshold limit.

Note:

1) Persons associated with non-individual resident persons means the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the non-individual resident persons or any person competent to act on behalf of such persons.

2)  The last date to apply for PAN shall be 31st May of next Financial Year in which financial transactions are entered into.

139A

Rs. 2,50,000

2.

Certain transaction in which quoting of PAN is mandatory.

Section 139A read with Rule 114B

a) Sale or purchase of any immovable property valued at Rs. 10 lakhs or more

b) A time deposit with a bank/Nidhi company/NBFC exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year

c) A time deposit with Post Office exceeding Rs. 50,000  or aggregating to more than Rs. 5,00,000 during a financial year

d) A contract of a value exceeding Rs. 1 lakh for sale or purchase of securities

e) Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange of an amount exceeding Rs. 1,00,000 per transaction.

f) Payment to hotels and restaurants against their bills for an amount exceeding Rs. 50,000 at any one time

g) Payment in cash for purchase of bank draft or pay orders or banker’s cheque for an amount Rs. 50,000 or more during any one day

h) Deposit in cash aggregating Rs. 50,000 or more during one day with a bank

i) Payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 50,000 at any one time

j) Payment in cash for purchase of any foreign currency of an amount exceeding Rs. 50,000 at any one time.

k) Payment of an amount of Rs. 50,000 or more to a Mutual Fund for purchase of units or to a company for acquiring shares or debentures or bonds issued by it

l) Payment of an amount of Rs. 50,000 or more to RBI for acquiring bonds issued by it

m) Payment in cash or by way of a bank draft or pay order or banker's cheque of an amount aggregating to more than Rs. 50,000 in a financial year for one or more pre-paid payment instruments issued by RBI to a banking company or a co-operative bank or to any other company or institution.

n) Payment of an amount of Rs. 50,000 or more in a year as life insurance premium to an insurer

o) Payment for sale or purchase of goods or services of any nature (other than those specified above in Point No. (a)to(n)) of an amount exceeding Rs. 2,00,000 per transaction.

P.

Others Provisions

1.

Restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect

Rule 48K

If value of property exceeds:

1. Rs. 75,00,000 if immovable property is comprised within in area of Greater Bombay

2. Rs. 50,00,000 if immovable property is comprised within in area of Union territory of Delhi

3. Rs. 25,00,000 if immovable property is comprised within in area of Calcutta Metropolitan Area and Madras Metropolitan Planning Area

4. Rs. 25,00,000 if immovable property is comprised within in area of Bangalore Metropolitan Region and the areas declared as Ahmedabad Urban Development Area and the areas comprised in the city of Ahmedabad

5. Rs. 25,00,000 if immovable property is comprised within in area of Pune

6. Rs. 20,00,000 if immovable property is comprised within in areas other than those mentioned above and notified vide SO 339(E), dated 8th May, 1989; SO 53(E), dated 19th January, 1990 and SO 180(E), dated 14th March, 1991

7. Rs. 10,00,000 if the agreement for transfer is entered into, on or before the 31-07-1995

2.

No restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect

269UC

If value of property does not exceed Rs. 5,00,000

3.

Transfer of any asset except stock-in-trade, without obtaining the permission of assessing officer, in favour of any other person during the pendency of any proceeding under the act of which notice is served on the assessee to be considered as void

281

If amount of tax or other sum payable or likely to be payable exceeds Rs. 5,000 or value of asset transferred exceeds 10,000

4.

Submission of statements by producers of cinematograph films or person engaged in specified activity within prescribed period

285B

Reporting of all payments made by him or due from him to each such persons as is engaged by him in such production which exceeds Rs. 50,000

5.

No statement is required to be furnished to the registrar in respect of transfer of immovable property

269P

If apparent consideration for such property doesn’t exceedRs.50,000

6.

Limit on accepting loan or deposit or any specified sum otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions)

269SS

Rs. 20,000 in aggregate

6A.

Limit on receiving any amount otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions)

269ST

Rs. 2,00,000 or more in aggregate from a person in a day

7.

Limit on repayment of loan or deposit or any specified advance received by it, otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions)

269T

Rs. 20,000 in aggregate

8.

Rebate to resident individual whose total income does not exceed Rs. 5,00,000

87A

Tax payable subject to maximum of Rs. 12,500

8A.

Rebate to assessee whose total income chargeable to tax under section 115BAC(1A) is upto Rs. 7,00,000

87A

Tax payable subject to maximum of Rs. 25,000

9.

Income of minor child clubbed under Section 64(1A) with parent’s income.

10(32)

Rs. 1,500 per child or Income of Minor, whichever is lower