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Saturday, February 27, 2010

Union Budget 2010-11:Amendments to Income Tax Act

11. Sec. 56(2)(vii) : Immovable property

Only those transaction relating to immovable property that are without consideration are covered. Cases involving inadequate consideration in respect of immovable property has been removed.

12. Sec. 56(2) : Definition 










The definition of property has been amended to include bullion.
Further, section 142A has been amended to allow the AO to make reference to valuation officer for estimation of value of property for purposes of section 56(2)

13. Sec. 80CCF : Deduction in respect of investment in LT Infra Bonds

Deduction is allowed to Individual & HUF only in respect of investment in notified long term infrastructure bonds to the extent of Rs. 20,000/-. This deduction is over and above the limit of Rs. 1,00,000/- specified u/s 80CCE

14. Sec. 115JB : MAT




 Rate of MAT is increased to 18% of Book Profits.






       Tax credit shall be allowed to be carried forward and set off up to 10 Assessment years immediately succeeding the AY in which tax credit becomes allowable.


15. Sec.
44AB : Tax 
Audit

















The limit for getting the books of accounts audited has increased as follows:

In case of business, if the total turnover or gross receipts in business exceeds Rs. 60 Lakhs in the PY.

In case of profession, if the gross receipts in profession exceeds Rs. 15 Lakhs in the PY.













16. Sec. 
44AD :
Presumptive Income


























The threshold limit has been raised to Rs. 60 Lakhs






































17. 
Chapter XVII B :
Threshold limit of TDS









































Sec
Nature of payment
Existing threshold
Proposed Threshold
194B
Winning from Lottery & crossword puzzles
5,000
10,000
194BB
Winnings from Horse Race
2,500
5,000
194C
Payment to Contractors
20,000 [for single transaction]
30,000
194C

50,000
[for aggregate transactions]
75,000
194D
Insurance Commission
5,000
20,000
194H
Commission or brokerage
2,500
5,000
194I
Rent
1,20,000
1,80,000
194J
Fess for professional or technical services
20,000
30,000





















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