User talk:Mperumalla

Deductions
80C	Life Insurance premium and provident fund, interest on loan for higher studies or residential house Upto 1,00,000	Fund should be recognised or set up by the government. Only Assesse should be contribution and if it employer or some other person contributed on his behalf it is not eligible Life Insurance premium Own and spouse and son or daughter whether dependent or not If son is dependent or not, his Life insurance amount is deductible. But, if brother is dependent also not deductible. Education fees allowable for two childrens only and full amount deductible Accrued interest on NSC-VIII issure Interst Payment or repayment for purposes of purchase or contruction of a residential house loan should be residentialhouse can be purchase or construction

80CCC	Contribution to certain pension funds 80CCD	This also for pension funds but scheme should be central government 80CCE

80D	It is related to Medical treatment and it's available only to individulas Medical Premium	Medical insurance premium for spouse and personal and sons/daughter. (if son or dau are not resident in india can't claim.) no relatives								No Any premium paid in cash or by cheque out or exempted income does not qualify for sec 80D. Spouse's health is always eligible irrespective of whether the spouse is dependent on the assessee or not and citizenship also does not matter. The condition of dependencyapplies only in case of children andparents. Grandson, parents, daughter-in-law, son-in-law are not eligible for deduction u/s 80D If mother non resident and not senior citizen as per fgn cuntry, and she is dependent on TP then eligible.

80DD	Medical treatment of dependent who is a person with disability 80DDB	Medical treatment of dependent who is a person without disability. Senior citizen 		exepnese can claim to extent of receipts provided. resident in india		If exp paid by TP out of his tax exempted income we can deduct. It's relates to Medical treatment only not medical policies or insurances Grandson not covered under this section Form No. 10-I does not require the doctor to certify the amount incurred. Non residential can claim the 80DDB. But she/he should be senior citizen. Then max is 40,000. It's relates to rents paid, Contributions to cetain funds, charitables and donations for research political parties

80G	Type of Donation based limitation on Deduction availability a. Donation not subj to Qualifying amount, eligible for deduction @ 100% of the Amount donated b.Donation not subj to qualifying amount, eligible for deduction @50% of amount donated c.Donation subj to Qualifying Amount: First Step: Find out Qualifying amount as IT Law. Whichever lower Second Step:	10% of Adjusted Gross Total Income i.e or AGI Means: Gross total Income and ignore the longterm capital gain AND gross winnings from crossword puzzle means deduct the long term gain and also deduct the Other deductions Donation to a notified temple is allowed only if its towards its repairs or maintenance and not otherwise.

80GG	Rent paid Expenditure Incurred On rent: 			Least of the following Rent Paid-10% of ATI 25% of AGTI 2000P.M.

80GGA	Donations for scientific research or rural development 80GGC	Contributions by any person to political parties					100%

80U	Deductions in case of a person with Disability					50,000				Severe and partial disabilty 80E	Interest on Education loan spouse and children eventhough they have earned income									should be paid out of taxable income only not exempted income. 80-IA	The deduction is available for a period of 10 consecutive assessment years out of 15 years from the commencement of business by the  undertaking. Therefore, since all the carry forward losses and allowances have been set off by PY

80-IB	Deductions from profits and gains from certain industrial undertaking otherthan infrastructure undertaking Housing project	SSI					25% OF PROFITS flat of size will decide deductiblityof profits	B-class indusrial backward district					25% Multiplex theatre					50% convention centre					50% Hill view hotel					Allowed only for Indian companies Refining undertaking 					100% of profts for 7 assessment years.

80JJAA	30% in respect of employment of new workmen.

80-RRB	Least of the following Royalty	Income from royalty or royalty under the terms of license settled by the controller or max limit 300,000.

For Non resident, there deductions everything will taxable.

Tax Liabilty
TAX	Particulars			Amount in Rs. Income from Salary			XXXXXXXXX Income from Houseproperty	 		XXXXXXXXX Income from Business or profession			XXXXXXXXX Income from Capital gain/loss Rebates 		XXXXXXXXX Other sources of Income			XXXXXXXXX Gross Total Income			XXXXXXXXX Less: 	Deductions			XXXXXXXXX Taxable InCome			XXXXXXXX Tax Liability 	1	As Per Slab rates	XXXXXXX Less: 	Rebates 	2		XXXXXX Add: 	Surcharge @10% on Taxliabilty	3	This is on Tax liabilty if Taxable Income exists morethan 10,00,000 Rupees. XXXXX 4	1+2-3	XXXXX Add: 	Education Cess: 2% on taxliabilty and surcharge and rebates	5	3*2%	XXXX Add: 	SHEC @1% on taxliability and surcharge	6	3*1%	XXXX Total Taxliabilty	7	Sum of 4+5+6	XXX Less: 	Double taxation Relief			XX Tax Payable		u/S 288 B ROUNDED OFF TO THE NEAREST MULIPLE OF RS.10	X Interest as per sec 234A			X

MAT	Minimum Alternative Tax - Sec 115JB	Whichever Higher will considered Between MAT and slab rates as per IT law.

Net profit/loss as per Profit and loss account Add:	expenses not deductible and income taxable as per MAT Adjusted Profits Less:	Income not taxable and expenses are deductible Book Profits Tax On Book Profits		10% on Books Profits

Notes:	Depreciation and business loss whichever less we need to brought forward. If depreciation on account of revaluation of any asset is exist in p&l a/c need to added back. While cal Book Profits, losses has been considered as per Accounting purposes. But, while tax liabilty as per IT law, both Loss and depreciation should be considered as tax purposes.

Interest	Sec 234A	1.25%P.M. Sec234B		The assesse fails to pay advance tax or advance tax paid by the assessee is less than 90% of the assessed tax. per every month or part of the month		Assessed tax	XXXX Less:	Advance tax	XXXX amont on interest is payable	XXXXX Amount on which interest is payable*1.25% per month*no.of.months

Sec 234C		Where the assessee fails to pay any installment of advance tax or pays less amount than prescribed, he shall be liable to pay interest u/s 234c 1.25%	Refund	Sec237 sec238		Person other than the assesses can claim refund 1.whose total income includes income of anther person under any provisions of act. 2.Fringe benfits taxes paid by employer then emper can claim 3.legal representative Recovery Procedure Sec 239-1		Form No. 30 Sec 239-2		Time-limit- within one year from the last day of the relevant assessment year. sec 240		Refund becomes due as a result of any order passed under IT act. sec 242

Interest on Refund			Taxable sec244A Applicability		If refund araised out of any tax paid u/s 115wj or TDS OR TCS U/S 206C OR Advance tax Exception		If refund is less than 10% of amount of tax determined u/s 143-1 or 115we-1 or regular assessment rate of interst		0.5% per month or part of a month.

Overpayment applied to next year tax liabilty sec245		But Assessing officer should intimate the taxpayer in writing shall be sent to the assesse stating the action proposed to be taken under this section

Amount paid by an assesse or on his behalf or treated as paid by him			XXXX Less; Taxpayer on assessed Income			XXXX Refund, if the assesse satisfied the Assessing officer			XXXX

Advance Tax Sec 208		Whose advance tax payable for the assessment year immediately following the financial year is 5,000 or more. Tax on Total Income Less: Rebate and relief Add: Surcharge Less: TDS and TCS Due date 	Corporate assesse		Non corporate assesses on6/15	15% of advance tax payablw		Not applicable on 9/5	45% of advance tax payablw		30% of Advance tax payable on 12/15	75% of advance tax payablw		60% of advance tax payable on 3/15	100% of AT payable		100% of advace tax payable

Mode of Recovery of tax by Recovery officer incase of assessee default for payment of tax due sec 222		Form 57 1.sale of assessee's movable property 2.sale of the assessee's immovable property 3.arrest of the assesse and his detention in prison 4.appointing a receiver for the management of the assesse's movable and immovable properties

Set off & CO
1. Income from House Property		8yrs			Can be Set-off from any other type of income. 2. Profits /Gains from Business/ Profession Speculation Non Speculation Business/Profession Notes:	Unabsorbed business loss				Time-limit is there. First preference		Unabsorbed business loss and unabsorbed depreciation and if business has been wind up after loss occurred year also we can set-off. Unabsorbed business depreication				No Time-limit for c/o Loss of Speculation				4yrs and Prior 08-09 8yrs			should be set-off with speculation gains should not othersources income Loss of Non speculation Loss of business or profes							From any source can be set-off but salaries and winnings from lottery, card games, crossward puzzle, betting on horse race Bio-degradable waste income is 100% deduction under section 80JJA.

3. Capital Gains

Only Inter head set-off possible STCL				Can be set-off with LTCG and 8 yrs c/o				Can't set-off from other sources LTCL				Only from LTCG and 8 yrs c/o and can't use STCG. sec 74-2 4.Income from Other sources

Card Game				Neither can be set-off nor can be carried forward and even under same head also can't be set-ff. Horses race Owning and maintaing				4yrs and same type of income only we can set-off wagering and betting				Neither can be set-off nor can be carried forward and even under same head also can't be set-ff. Letting out plant				Can be set-off from any other otherssources and exception is winning on card games.

Losses from Race Horses made illegally losses can't be set-off annd carryforward but income should be taxable. Horses purchased and depreciation on horses is not allowable exp while calculating gain or loss of Horses.

Double taxation relief - Sec 91
Double taxation relief - Sec 91 Double taxed income refers to foreign income which also suffered tax in India. Relief is allowed on the double taxed income either at avg rate of Indian tax or avg rate of foreign Income tax. Whicheer is lower out of two.

1. Need to see whether India having treaty with that fgn country for double taxation relief.

If no treaty		we can do below procedure to find out the relief of double taxation If treaty exists		Then whatever income earned in fgn country no need to pay tax in India.

1.Avg rate of Indian Income tax			Total taxliabilty/Total taxable Income*100				394824/13,30,300*100=29.65% 2.Avg Rate of fgn Income tax			Total fgn taxespaid/total taxable income in fgn country*100				250,000/12,00,000*100=20.833%

Here, out of 12,00,000 fgn taxable income includes 2,00,000 which is India source. So, need to deduct 2,00,000.

10,00,000*29.65%		296500					10,00,000*20.833%		208330		So, FGn income tax lower then need to deduct 2,08,330 from taxliabilty

Limited Liabilty ACT,2009 Newly incorporated in India As US
--Mperumalla (talk) 06:58, 18 December 2009 (UTC)

Notification: changes to "Mark my edits as minor by default" preference
Hello there. This is an automated message to tell you about the gradual phasing out of the preference entitled "Mark all edits minor by default", which you currently have enabled.

On 13 March 2011, this preference was hidden from the user preferences screen as part of efforts to prevent its accidental misuse (consensus discussion). This had the effect of locking users in to their existing preference, which, in your case, was. To complete the process, your preference will automatically be changed to  in the next few days. This does not require any intervention on your part and you will still be able to manually mark your edits as being 'minor'. The only thing that's changed is that you will no longer be able to have them marked as minor by default. For more information on what a minor edit is, see WP:MINOR or feel to get in touch.

Thank you for your understanding and happy editing :) Editing on behalf of User:Jarry1250, LivingBot (talk) 23:00, 13 March 2011 (UTC)