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

2. Change in Tax Rates

3. Income tax slab for A.Y. 11-12 New Income Tax Slabs for ay 11-12 for Resident Senior Citizens Sr. No.Income RangeTax percentage 1Up to Rs 2,40,000No tax / exempt 22,40,001 to 5,00,00010% 35,00,001 to 8,00,00020% 4Above 8,00,00030% Income Tax Slabs for ay 11-12 for Resident Women (below 65 years) 1Up to Rs 1,90,000No tax / exempt 21,90,001 to 5,00,00010% 35,00,001 to 8,00,0020% 4Above 8,00,00030% New Income Tax Slabs for ay 11-12 Others & Men 1Up to Rs 1,60,000No tax / exempt 21,60,001 to 5,00,00010% 35,00,001 to 8,00,00020% 4Above 8,00,00030%

4. Some other Amendments In the case of a domestic company, rate of S.C. on I.T. reduced from 10% to 7.5%. Rate of MAT on book profit u/s. 115JB enhanced from 15% to 18%.

5. 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 1000010 10000 to 2000020 20000 & above30

6. Insertion of new Section 44AD

7. 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. 44AD 44AF 44AD

8. 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. Sec.-44AD

9. 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.

10. 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. And 2. Whose total income exceeds the maximum amount which is not chargeable to income- tax.

11. 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.

12. 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.

13. 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.

14. Revision of TDS limits and rates- A Glance

15. Threshold limits for TDS increased w.e.f. 01.07.10:- Sectio n Nature of PaymentExisting limit Revised limit If Recipient is Comp., Co-op Soc., Firm If Recipient is Indiv. Or HUF 194BWinnings from lottery or crossword puzzle 50001000030 194BBWinnings from horse race 2500500030 Last date for filing return for 4th Quarter has been amended to 15 th May which was previously 15 th June.

16. 194CPayment To contractors (for a single transaction) (for aggregate of transactions during financial year) 20000 50000 30000 75000 21 194DInsurance commission50002000010 194HCommission or Brokerage2500500010 194IRent Other than Plant, Machinery & Equp. Rent Of Plant, Machinery & Equp. 120000 180000 10 2 10 2 194JFees for professional or technical services 200003000010 There is no changes under Sec. 194A

17. Introduction of 80CCF

18. 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.

19. 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.

20. The Central Government have 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.

21. Changes in ITR Forms oSAHAJ is the newly designed ITR-1 which replaces SARAL Income Tax Return.

22. Who can use SAHAJ? This Return Form is to be used by an individual whose total income for the assessment year 2011-12 includes: Income from Salary/ Pension; or Income from One House Property (excluding cases where loss is brought forward from precious years); OR Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

23. 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

24. 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