Amendments in I.T. Act for A.Y. 2011-12 and Changes in ITR Forms.

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Amendments in I.T. Act for A.Y. 2011-12 and Changes

in ITR Forms.



Change in Tax Rates


Income tax slab for A.Y. 11-12

New Income Tax Slabs for ay 11-12 for Resident Senior Citizens

Sr. No. Income Range Tax percentage

1 Up to Rs 2,40,000 No tax / exempt

2 2,40,001 to 5,00,000 10%

3 5,00,001 to 8,00,000 20%

4 Above 8,00,000 30%

Income Tax Slabs for ay 11-12 for Resident Women (below 65 years)

1 Up to Rs 1,90,000 No tax / exempt

2 1,90,001 to 5,00,000 10%

3 5,00,001 to 8,00,00 20%

4 Above 8,00,000 30%

New Income Tax Slabs for ay 11-12 Others & Men

1 Up to Rs 1,60,000 No tax / exempt

2 1,60,001 to 5,00,000 10%

3 5,00,001 to 8,00,000 20%

4 Above 8,00,000 30%


Some other Amendments Some other Amendments

• In the case of a domestic company, rate of S.C. on I.T. reduced from 10% to


• Rate of MAT on book profit u/s. 115JB

enhanced from 15% to 18%.


For Foreign Companies

• Foreign companies are taxable @ 40 percent

• Surcharge is applicable @ 2.5 percent if total income is in excess of INR 10,000,000.Marginal relief may be available

• Education Cess is applicable @ 3 percent on income-tax.

For Co-operative Societies

• Upto 10000 10

• 10000 to 20000 20

• 20000 & above 30


Insertion of new Section



Amendments in PGBP

Previously u/s 44AF

In the case of an assessee engaged in retail trade in any goods or merchandise, a sum equal to 5% of the total turnover in the previous year is

considered as net profit.


Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to 8% of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession.



Eligible business means:-

1. Any business except the business of plying, hiring or leasing goods carriages referred to in section

44AE; and

2. Whose total turnover or gross receipts in the previous year does not exceed an amount of sixty lakh rupees.

There is specific Turnover limit of Rs. 15 Lakhs for Profession under section 44AB, which means that profession is totally separate from Business.


The assessee is bound to get the books of accounts audited, if the following two

conditions are satisfied:-

1. His profits and gains from the eligible

business are lower than the profits and gains specified in sub-section (1) i.e. his net profit is lower than 8% of turnover.


2. Whose total income exceeds the maximum

amount which is not chargeable to income-



X, A Resident individual, is carrying on three eligible business, the turnover of

which is as under :-

• Business A ( Manufacturing) Rs. 25 Lac

• Business B( Trading) Rs. 15 Lac

• Business C ( Service) Rs. 25 Lac

Q. Whether section 44AD applicable on him?

The Answer is NO because turnover of eligible

business exceed Rs. 60 Lakhs.


X, A Resident individual, is carrying on two business, the turnover of which is as

under :-

• Business A ( Eligible Business) Rs. 55 Lk

• Profession Rs. 10 Lk

• Business B( Transport u/s 44AE) Rs. 6 Lk Here, Section 44AD and 44AE both are applicable, as profession is not included under section 44AD and section 44AD and 44AE are

independent of each other.


Sec. 44AE Sec. 44AE

• Plying, leasing or hiring of trucks (person should not own over 10 goods carriage at any time during the previous year)

• INR 5,000 per month/ part of month for each heavy goods vehicle.  

• INR 4,500 per month/ part of month

for each light goods vehicle.


Revision of TDS limits

and rates- A Glance


Threshold limits for

TDS increased w.e.f. 01.07.10:-


on Nature of

Payment Existing

limit Revised

limit If

Recipie nt is Comp., Co-op Soc., Firm


Recipie nt is Indiv.


194B Winnings from lottery or

crossword puzzle

5000 10000 30 30

194BB Winnings from horse

race 2500 5000 30 30

Last date for filing return for 4th Quarter has been amended to 15th May which was previously 15th June.


194C Payment To contractors (for a single


(for aggregate of transactions during financial year)





2 1

194D Insurance commission 5000 20000 10 10

194H Commission or Brokerage 2500 5000 10 10

194I Rent Other than Plant, Machinery & Equp.

Rent Of Plant, Machinery &










194J Fees for professional or technical


20000 30000 10 10

There is no changes under Sec. 194A


Introduction of 80CCF


Introduction of 80CCF

The new section 80CCF, will offer a deduction of

Rs 20,000, in addition to the deduction of Rs 1

lakh under sections 80C, provided the

investments are in notified long term

infrastructure bonds. The government has

proposed this section to promote investments in

infrastructure projects in the country.


• This section is applicable from A.Y 2011-12.

• Deduction under this section is available only to Individuals and HUFs tax payers.

• The long term infrastructure bonds will have tenure of 10 years.

• Minimum lock in period of 5 years.

• Investments in infrastructure bonds would

require PAN to be mandatory furnished.


The Central Government have The Central Government have

Specified bonds to be issued by:

Specified bonds to be issued by:

• Industrial Finance Corporation Of India

• Life Insurance Corporation Of India

• Infrastructure Development Finance Company Limited

• A Non-Banking Finance Company Classified as an Infrastructure Finance Company by the Reserve Bank of India

as “Long Term Infrastructure Bond” for the purpose of Sec. 80CCF.


Changes in ITR Forms

o SAHAJ is the newly designed ITR-1 which

replaces SARAL

Income Tax Return.


Who can use SAHAJ?

This Return Form is to be used by an individual whose total income for the assessment year 2011-12


• Income from Salary/ Pension; or

• Income from One House Property (excluding cases where loss is brought forward from precious years);


• Income from Other Sources (excluding Winning from Lottery and Income from Rose Horses)


• For Carry forward losses always use ITR-2 or 4 Only.

• No AIR anymore 

• Bank Account Detail is mandatory for every return.

• Linkages to FORM 26AS

• SAHAJ can’t be used if,

- Agriculture income exceed 5000

- Any brought/Carried forward losses.

Common Points for all ITRs


For Manual Return Filing:

• Bar Code and PAN Number are compulsory on every page

• Compulsory Mobile No.

• Use of Dropout Ink to reduce Interference

during Data Capture





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