Key Points--- INCOME TAX

-From FY 2014-15 Depreciation is to be calculated as per New Companies Act.

-As per Income Tax Act, Income is taxable under five heads- Salary, House Property, Business or Profession, Capital Gain and Other Sources.

-Salaried person must obtain Form 16 from his Employer Every Year.

-Income Tax Return should be filed by considering Form 16 and other Income.

-Transport Allowance is exempt up to Rs.1,600 per month.

-30% Standard deduction is available on Income from House Property.

-Income to be considered as deemed let out on second House property.

-For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and for other house property actual expenditure of Interest on Housing Loan is allowed.

-Repayment of Principal amount of Housing Loan is deductible u/s 80C up to Rs.150,000/-.

-Tax Audit is compulsory if sales turnover exceeds Rs.1 crore in case of business.

-Tax Audit is compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.

If sales turnover is below Rs. 1 crore, then net profit of 8% or higher is to be taken as business income otherwise tax audit is required.

-The Due Date for Tax Audit and income Tax Return is 30th September.

-Assessee other than Company and those eligible for Tax Audit are required to file Income Tax Return before 31st of July. Extended date is 31st Aug for F.Y. 2014-15.

-Accurate Stock Valuation should be done on 31st of March.

-Cash payment should not be made to a person in single day exceeding Rs.20,000.

Cash Payment limit for Transporters is Rs.35,000/-.

-Loans, deposits and Immovable Properties transactions should not be carried out above Rs.20,000 in cash.

-Business loss can be carried forward to Next 8 Years.

-Tax Audit applicable assesses should deduct TDS on particular transactions.

-TDS should be made on the date of Credit or Payment basis of whichever is earlier.

-TDS payment should be made on or before 7th day of Next Month.

-TDS Returns are to be filed Quarterly.

-TDS returns can be revised any number of times.

-TDS should be deducted and paid if applicable.

-If TDS is not deducted then deduction of 30% of Expenditure is not allowed.

-Late filling of TDS return attracts late filing fees of Rs.200 per day.

-Long Term Capital Gain will arise if transfer of specified Capital Assets is made after 3 years.

Generally Long Term Capital Gains is taxable @ 20%

-STT paid Long Term Capital Gain on Shares,etc is exempt from Tax.

-Short Term Capital Gain is Taxable @ 15% if STT is paid.

-Capital Gain on Immovable Properties is chargeable at Stamp Duty Value or Selling Price whichever is higher.

-Dividend received from domestic company is exempt from Tax.

-Agricultural Income is exempt from Tax.

-Gifts received form stranger of an Amount exceeding Rs.50,000 is taxable.

-Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.

-Maximum deduction limit u/s 80C, 80CCC and 80 CCD is Rs.1,50,000.

-Deduction of Medical Insurance Premium is available up to Rs. 25,000.

-Deduction of Medical Insurance Premium paid for Parents is available up to Rs. 20,000.

-Deduction limit of Interest earned on Saving Accnt is up to Rs.10, 000.

-Income earned by a Minor child is clubbed in the hands of Parents.

-Every Taxpayer should verify his Form 26AS.

-Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.

-Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.

-Basic Exemption Limit for individuals for FY2015-16 is Rs.2,50,000.

-Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs.3,00,000.

-Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs.5,00,000.

-Advance Tax is to be paid if Tax Liability during the year exceeds Rs. 10,000.

-12% of Surcharge is applicable if Income Exceeds Rs. 1Crore.

-Income Tax Return should be filed if Income exceeds Basic Exemption Limit.

-30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.

-For Companies – Minimum Alternate Tax and for other Assesses– Alternate Minimum Tax rate is 18.5%.

-Details of all Bank Accounts have to be given in Income Tax return.

-In Income Tax, E-filling of return can be done for Previous 2 Years only.

--Detail of Fixed Assets held in Foreign Country is required to be given in Income Tax return.

-If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs.2,000/- is available in Tax.

-Aadhar Card No. is required to be mentioned in Income Tax return.

-E-filling of return is compulsory if income exceeds Rs. 5 lakhs.

-PAN Card is essential for Taxpayer and it should not be used as Id Proof.

-Domestic Transfer Pricing is applicable on transaction exceeding an Amount Rs.20 Crores.