Income Tax :- Incomes not included in Total Income u/s 10

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

Incomes not included in total income.

10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included—

(1)  agricultural income ;

²(2) ³[subject to the provisions of sub-section (2) of section 64,] any sum received by an individual as a member of a Hindu undivided family, where such sum has been paid out of the income of the family, or, in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family ;

⁴[(2A)  in the case of a person being a partner of a firm which is separately assessed as such, his share in the total income of the firm.

Explanation.—For the purposes of this clause, the share of a partner in the total income of a firm separately assessed as such shall, notwithstanding anything contained in any other law, be an amount which bears to the total income of the firm the same proportion as the amount of his share in the profits of the firm in accordance with the partnership deed bears to such profits ;]

(3)  ⁵[***]

⁶[(4)  (i) in the case of a non-resident, any income by way of interest on such securities or bonds as the Central Government may, by notification in the Official Gazette⁷, specify in this behalf, including income by way of premium on the redemption of such bonds :

⁸[Provided that the Central Government shall not specify, for the purposes of this sub-clause, such securities or bonds on or after the 1st day of June, 2002;]

⁹[¹⁰(ii) in the case of an individual, any income by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with ^10a[the Foreign Exchange Management Act, 1999 (42 of 1999)], and the rules made thereunder :

Provided that such individual is a person resident outside India as defined in clause (q) of section 2¹¹ of the said Act or is a person who has been permitted by the Reserve Bank of India to maintain the aforesaid Account ;]]

¹²[***]

¹³[(4B) in the case of an individual, being a citizen of India or a person of Indian origin, who is a non-resident, any income from interest on such savings certificates issued ¹⁴[before the 1st day of June, 2002] by the Central Government as that Government may, by notification in the Official Gazette¹⁵, specify in this behalf :

Provided that the individual has subscribed to such certificates in convertible foreign exchange remitted from a country outside India in accordance with the provisions of ^15a[the Foreign Exchange Management Act, 1999 (42 of 1999)], and any rules made thereunder.

Explanation.—For the purposes of this clause,—

(a)  a person shall be deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in undivided India ;

(b)  "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of ^15a[the Foreign Exchange Management Act, 1999 (42 of 1999)], and any rules made thereunder ;]

¹⁶[(5)  in the case of an individual, the value of any travel concession or assistance received by, or due to, him,—

(a)  from his employer for himself and his family, in connection with his proceeding on leave to any place in India ;

(b)  from his employer or former employer for himself and his family, in connection with his proceeding to any place in India after retirement from service or after the termination of his service,

subject to such conditions as may be prescribed¹⁷ (including conditions as to number of journeys and the amount which shall be exempt per head) having regard to the travel concession or assistance granted to the employees of the Central Government :

Provided that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.

Explanation.—For the purposes of this clause, "family", in relation to an individual, means—

(i)  the spouse and children of the individual ; and

(ii)  the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual; ]

(5A)  ¹⁸[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999;]

(5B)  ¹⁹[Omitted by the Finance Act, 2002, w.e.f. 1-4-2003;]

 (6)  in the case of an individual who is not a citizen of India,—

(i)  ²⁰[***]

²¹[(ii)  the remuneration received by him as an official, by whatever name called, of an embassy, high commission, legation, commission, consulate or the trade representation of a foreign State, or as a member of the staff of any of these officials, for service in such capacity :

Provided that the remuneration received by him as a trade commissioner or other official representative in India of the Government of a foreign State (not holding office as such in an honorary capacity), or as a member of the staff of any of those officials, shall be exempt only if the remuneration of the corresponding officials or, as the case may be, members of the staff, if any, of the Government resident for similar purposes in the country concerned enjoys a similar exemption in that country :

Provided further that such members of the staff are subjects of the country represented and are not engaged in any business or profession or employment in India otherwise than as members of such staff ;]

(iii)  to (v) [Sub-clause (ii) substituted for sub-clauses (ii) to (v) by the Finance Act, 1988, w.e.f. 1-4-1989;]

(vi)  the remuneration received by him as an employee of a foreign enterprise for services rendered by him during his stay in India, provided the following conditions are fulfilled—

(a)  the foreign enterprise is not engaged in any trade or business in India ;

(b)  his stay in India does not exceed in the aggregate a period of ninety days in such previous year ; and

(c)  such remuneration is not liable to be deducted from the income of the employer chargeable under this Act ;

(via)  ²²[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999;]

 (vii)  ²³[Omitted by the Finance Act, 1993, w.e.f. 1-4-1993;]

(viia)  ²⁴[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999;]

(viii)  any income chargeable under the head "Salaries" received by or due to any such individual being a non-resident as remuneration for services rendered in connection with his employment on a foreign ship where his total stay in India does not exceed in the aggregate a period of ninety days in the previous year ;

(ix)  ²⁵[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999;]

(x)  ²⁶[Omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999;]

²⁷[(xi)  the remuneration received by him as an employee of the Government of a foreign State during his stay in India in connection with his training in any establishment or office of, or in any undertaking owned by,—

(i)  the Government ; or

(ii)  any company in which the entire paid-up share capital is held by the Central Government, or any State Government or Governments, or partly by the Central Government and partly by one or more State Governments ; or

(iii)  any company which is a subsidiary of a company referred to in item (ii) ; or

(iv)  any corporation established by or under a Central, State or Provincial Act ; or

(v)  any society registered under the Societies Registration Act, 1860 (14 of 1860), or under any other corresponding law for the time being in force and wholly financed by the Central Government, or any State Government or State Governments, or partly by the Central Government and partly by one or more State Governments ;]

²⁸[(6A) where in the case of a foreign company deriving income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976 ²⁹[but before the 1st day of June, 2002] ³⁰[and,—

(a)  where the agreement relates to a matter included in the industrial policy, for the time being in force, of the Government of India, such agreement is in accordance with that policy ; and

(b)  in any other case, the agreement is approved by the Central Government,

the tax on such income is payable, under the terms of the agreement, by Government or the Indian concern to the Central Government, the tax so paid].

Explanation.—For the purposes of this clause ³¹[and clause (6B)],—

(a)  "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9 ;

(b)  "foreign company" shall have the same meaning as in section 80B ;

(c)  "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9;]

³¹[(6B) where in the case of a non-resident (not being a company) or of a foreign company deriving income (not being salary, royalty or fees for technical services) from Government or an Indian concern in pursuance of an agreement entered into ³²[before the 1st day of June, 2002] by the Central Government with the Government of a foreign State or an international organisation, the tax on such income is payable by Government or the Indian concern to the Central Government under the terms of that agreement or any other related agreement approved ³²[before that date] by the Central Government, the tax so paid ;]

³³[(6BB) where in the case of the Government of a foreign State or a foreign enterprise deriving income from an Indian company engaged in the business of operation of aircraft, as a consideration of acquiring an aircraft or an aircraft engine (other than payment for providing spares, facilities or services in connection with the operation of leased aircraft) on lease under ³⁴[an agreement entered into after the 31st day of March, 1997 but before the 1st day of April, 1999, or entered into after the ³⁵[31st day of March, ³⁶[2007]] and approved by the Central Government in this behalf] and the tax on such income is payable by such Indian company under the terms of that agreement to the Central Government, the tax so paid.

Explanation.—For the purposes of this clause, the expression "foreign enterprise" means a person who is a non-resident;]

³⁷[(6C)  any income arising to such foreign company, as the Central Government may, by notification³⁸ in the Official Gazette, specify in this behalf, by way of³⁹[royalty or]fees for technical services received in pursuance of an agreement entered into with that Government for providing services in or outside India in projects connected with security of India ;]

(7)  any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for rendering service outside India ;

(8)  in the case of an individual who is assigned to duties in India in connection with any co-operative technical assistance programmes and projects in accordance with an agreement entered into by the Central Government and the Government of a foreign State (the terms whereof provide for the exemption given by this clause)—

(a)  the remuneration received by him directly or indirectly from the Government of that foreign State for such duties, and

(b)  any other income of such individual which accrues or arises outside India, and is not deemed to accrue or arise in India, in respect of which such individual is required to pay any income or social security tax to the Government of that foreign State ;

⁴⁰[(8A)  in the case of a consultant—

(a)  any remuneration or fee received by him or it, directly or indirectly, out of the funds made available to an international organisation [hereafter referred to in this clause and clause (8B) as the agency] under a technical assistance grant agreement between the agency and the Government of a foreign State ; and

(b)  any other income which accrues or arises to him or it outside India, and is not deemed to accrue or arise in India, in respect of which such consultant is required to pay any income or social security tax to the Government of the country of his or its origin.

Explanation.—In this clause, "consultant" means—

(i)  any individual, who is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India ; or

(ii)  any other person, being a non-resident,

engaged by the agency for rendering technical services in India in connection with any technical assistance programme or project, provided the following conditions are fulfilled, namely :—

(1)  the technical assistance is in accordance with an agreement entered into by the Central Government and the agency ; and

(2)  the agreement relating to the engagement of the consultant is approved by the prescribed authority⁴¹ for the purposes of this clause ;

(8B)  in the case of an individual who is assigned to duties in India in connection with any technical assistance programme and project in accordance with an agreement entered into by the Central Government and the agency—

(a)  the remuneration received by him, directly or indirectly, for such duties from any consultant referred to in clause (8A) ; and

(b)  any other income of such individual which accrues or arises outside India, and is not deemed to accrue or arise in India, in respect of which such individual is required to pay any income or social security tax to the country of his origin, provided the following conditions are fulfilled, namely :—

(i)  the individual is an employee of the consultant referred to in clause (8A) and is either not a citizen of India or, being a citizen of India, is not ordinarily resident in India ; and

(ii)  the contract of service of such individual is approved by the prescribed authority⁴² before the commencement of his service ;]

(9)  the income of any member of the family of any such individual as is referred to in clause (8) ⁴³[or clause (8A) or, as the case may be, clause (8B)] accompanying him to India, which accrues or arises outside India, and is not deemed to accrue or arise in India, in respect of which such member is required to pay any income or social security tax to the Government of that foreign State ^43a[or, as the case may be, country of origin of such member];

⁴⁴[⁴⁵(10)  ⁴⁶(i) any death-cum-retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services ;

(ii)  any gratuity received under the Payment of Gratuity Act, 1972 (39 of 1972), to the extent it does not exceed an amount calculated in accordance with the provisions of sub-sections (2) and (3) of section 4⁴⁷ of that Act ;

(iii)  any other gratuity received by an employee on his retirement or on his becoming incapacitated prior to such retirement or on termination of his employment, or any gratuity received by his widow, children or dependants on his death, to the extent it does not, in either case, exceed one-half month's salary for each year of completed service⁴⁸, ⁴⁹[calculated on the basis of the average salary for the ten months immediately preceding the month in which any such event occurs, subject to such limit⁵⁰ as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of that Government] :

Provided that where any gratuities referred to in this clause⁵¹ are received by an employee from more than one employer in the same previous year, the aggregate amount exempt from income-tax under this clause ⁵²[shall not exceed the limit so specified] :

Provided further that where any such gratuity or gratuities was or were received in any one or more earlier previous years also and the whole or any part of the amount of such gratuity or gratuities was not included in the total income of the assessee of such previous year or years, the amount exempt from income-tax under this clause ⁵²[shall not exceed the limit so specified] as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years.

⁵³[* * *]

Explanation.—⁵⁴[In this clause, and in clause (10AA)], "salary" shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule ;]

⁵⁵[⁵⁶(10A) ⁵⁷(i) any payment in commutation of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable ⁵⁸[to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority] or a corporation established by a Central, State or Provincial Act ;

(ii) any payment in commutation of pension received under any scheme of any other employer, to the extent it does not exceed—

(a)  in a case where the employee receives any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive, and

(b)  in any other case, the commuted value of one-half of such pension,

such commuted value being determined having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables of mortality ;

⁵⁹[* * *]

⁶⁰[ (iii) any payment in commutation of pension received from a fund under clause (23AAB) ;]

⁶¹[⁶²(10AA) (i) any payment received by an employee of the Central Government or a State Government as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his ⁶³retirement ⁶⁴[whether] on superannuation or otherwise ;

(ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit at the time of his retirement ⁶⁴[whether] on superannuation ⁶³or otherwise as does not exceed ⁶⁵[ten] months, calculated on the basis of the average salary drawn by the employee during the period of ten months immediately preceding his retirement ⁶⁴[whether] on superannuation or otherwise, ⁶⁶[subject to such limit as the Central Government may, by notification in the Official Gazette, specify in this behalf having regard to the limit⁶⁷ applicable in this behalf to the employees of that Government] :

Provided that where any such payments are received by an employee from more than one employer in the same previous year, the aggregate amount exempt from income-tax under this sub-clause ⁶⁸[shall not exceed the limit so specified] :

Provided further that where any such payment or payments was or were received in any one or more earlier previous years also and the whole or any part of the amount of such payment or payments was or were not included in the total income of the assessee of such previous year or years, the amount exempt from income-tax under this sub-clause ⁶⁹[shall not exceed the limit so specified], as reduced by the amount or, as the case may be, the aggregate amount not included in the total income of any such previous year or years.

⁷⁰[* * *]

Explanation.—For the purposes of sub-clause (ii),—

⁷¹[* * *] the entitlement to earned leave of an employee shall not exceed thirty days for every year of actual service rendered by him as an employee of the employer from whose service he has retired ;

⁷²[* * *]

⁷³[(10B)  any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of 1947), or under any other Act or Rules, orders or notifications issued thereunder or under any standing orders or under any award, contract of service or otherwise, ⁷⁴[at the time of his retrenchment :

Provided that the amount exempt under this clause shall not exceed—

 (i)  an amount calculated in accordance with the provisions of ⁷⁵clause (b) of section 25F of the Industrial Disputes Act, 1947 (14 of 1947) ; or

⁷⁶[(ii)  such amount, not being less than fifty thousand rupees, as the Central Government may, by notification⁷⁷ in the Official Gazette, specify in this behalf,]

whichever is less :

Provided further that the preceding proviso shall not apply in respect of any compensation received by a workman in accordance with any scheme which the Central Government may, having regard to the need for extending special protection to the workmen in the undertaking to which such scheme applies and other relevant circumstances, approve in this behalf.]

Explanation.—For the purposes of this clause—

(a)  compensation received by a workman at the time of the closing down of the undertaking in which he is employed shall be deemed to be compensation received at the time of his retrenchment ;

(b)  compensation received by a workman, at the time of the transfer (whether by agreement or by operation of law) of the ownership or management of the undertaking in which he is employed from the employer in relation to that undertaking to a new employer, shall be deemed to be compensation received at the time of his retrenchment if—

(i)  the service of the workman has been interrupted by such transfer ; or

(ii)  the terms and conditions of service applicable to the workman after such transfer are in any way less favourable to the workman than those applicable to him immediately before the transfer ; or

(iii)  the new employer is, under the terms of such transfer or otherwise, legally not liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer ;

⁷⁸(c) the expressions "employer" and "workman" shall have the same meanings as in the Industrial Disputes Act, 1947 (14 of 1947);]

⁷⁹[(10BB) any payments made under the Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 (21 of 1985), and any scheme framed thereunder except payment made to any assessee in connection with the Bhopal Gas Leak Disaster to the extent such assessee has been allowed a deduction under this Act on account of any loss or damage caused to him by such disaster ;]

⁸⁰[(10BC) any amount received or receivable from the Central Government or a State Government or a local authority by an individual or his legal heir by way of compensation on account of any disaster, except the amount received or receivable to the extent such individual or his legal heir has been allowed a deduction under this Act on account of any loss or damage caused by such disaster.

Explanation.—For the purposes of this clause, the expression "disaster" shall have the meaning assigned to it under clause (d) of section 2⁸¹ of the Disaster Management Act, 2005 (53 of 2005);]

⁸²[(10C) ⁸³any amount received^84 85[or receivable]by an employee of—

(i)  a public sector company ; or

(ii)  any other company ; or

(iii)  an authority established under a Central, State or Provincial Act ; or

(iv)  a local ⁸⁶[authority ; or]

⁸⁷[(v) a co-operative society ; or

(vi)  a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956) ; or

(vii)  an Indian Institute of Technology within the meaning of clause (g) of section 3⁸⁸ of the Institutes of Technology Act, 1961 (59 of 1961) ; or

⁸⁹[(viia)  any State Government; or]

⁹⁰[(viib)  the Central Government; or]

⁹¹[(viic)  an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette⁹², specify in this behalf; or]

(viii)  such institute of management as the Central Government may, by notification⁹³ in the Official Gazette, specify in this behalf,]

⁹⁴[on his] ⁹⁵[voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i), a scheme of voluntary separation, to the extent such amount does not exceed five lakh rupees] :

Provided that the schemes of the said companies or authorities ⁹⁶[or societies or Universities or the Institutes referred to in sub-clauses (vii) and (viii)], as the case may be, governing the payment of such amount are framed in accordance with such guidelines (including inter alia criteria of economic viability) as may be ⁹⁷prescribed ⁹⁸[***]:

Provided further that where exemption has been allowed to an employee under this clause for any assessment year, no exemption thereunder shall be allowed to him in relation to any other assessment year :]

⁹⁹[Provided also that where any relief has been allowed to an assessee under section 89 for any assessment year in respect of any amount received or receivable on his voluntary retirement or termination of service or voluntary separation, no exemption under this clause shall be allowed to him in relation to such, or any other, assessment year;]

^99a[(10CC) in the case of an employee, being an individual deriving income in the nature of a perquisite, not provided for by way of monetary payment, within the meaning of clause (2) of section 17, the tax on such income actually paid by his employer, at the option of the employer, on behalf of such employee, notwithstanding anything contained in section 200^99b of the Companies Act, 1956 (1 of 1956);]

^99c[(10D)  any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than—

(a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA *; or

(b)  any sum received under a Keyman insurance policy; or

(c)  any sum received under an insurance policy issued on or after the 1st day of April, 2003 ^99d[but on or before the 31st day of March, 2012] in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured^99d[; or]

^99d[(d)  any sum received under an insurance policy issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds ten per cent of the actual capital sum assured:]

Provided that the provisions of ¹[sub-clauses (c) and (d)] shall not apply to any sum received on the death of a person:

Provided further that for the purpose of calculating the actual capital sum assured under ²[sub-clause (c)], effect shall be given to the³[Explanation to sub-section (3) of section 80C or the Explanation to sub-section (2A) of section 88, as the case may be].

The following third proviso shall be inserted after the second proviso to sub-clause (d) of clause (10D) of section 10 by the Finance Act, 2013, w.e.f. 1-4-2014 :

Provided also that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is—

(i) a person with disability or a person with severe disability as referred to in section 80U; or

(ii) suffering from disease or ailment as specified in the rules made under section 80DDB,

the provisions of this sub-clause shall have effect as if for the words "ten per cent", the words "fifteen per cent" had been substituted.

⁴[Explanation 1].—For the purposes of this clause, "Keyman insurance policy" means a life insurance policy taken by a person on the life of another person who is or was the employee of the first-mentioned person or is or was connected in any manner whatsoever with the business of the first-mentioned person ^4a[and includes such policy which has been assigned to a person, at any time during the term of the policy, with or without any consideration];]

⁵[Explanation 2.—For the purposes of sub-clause (d), the expression "actual capital sum assured" shall have the meaning assigned to it in the Explanation to sub-section (3A) of section 80C;]

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Income Tax :- Mandatory e-filing or who is exempt for filing of Income Tax Return in A.Y. 2013-14

Important notification regarding mandatory e-filing of Income Tax Return who have income Rs. 5 lakh or more and exemption for filing of Income Tax Return has been issued on 01-05-2013 which is detailed below:- 

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

[CENTRAL BOARD OF DIRECT TAXES]

NOTIFICATION

New Delhi, the 1st day of May, 2013

Income-tax

S.O. 1111 (E).─ In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (3rd Amendment) Rules, 2013.

    (2) They shall be deemed to have come into force with effect from the 1st day of April, 2013.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 12,─

       (a) in sub-rule (1),-

                  (A) for the figures “2012”, the figures “2013” shall be substituted;

                  (B) in item (a),─

(i) in sub-item (iii), after the words “income from race horses”, the words “and does not have any loss under the head” shall be inserted; (ii) for the proviso, the following proviso shall be substituted, namely:-

“Provided that the provisions of this clause shall not apply to a person who,-

(I) is a resident, other than not ordinarily resident in India within the

meaning of sub-section (6) of section 6 and has,─

(i) assets (including financial interest in any entity) located outside India; or
(ii) signing authority in any account located outside India;

(II) has claimed any relief of tax under sections 90 or 90A or

deduction of tax under section 91; or

(III) has income not chargeable to tax, exceeding five thousand

rupees.”;

(C) in clause (ca), for the proviso, the following proviso shall be substituted, namely:-

“Provided that the provisions of this clause shall not apply to a person who,-

(I) is a resident, other than not ordinarily resident in India within the

meaning of sub-section (6) of section 6 and has,─

(i) assets (including financial interest in any entity) located outside India; or
(ii) signing authority in any account located outside India;

(II) has claimed any relief of tax under sections 90 or 90A or deduction of tax under section 91; or

(III) has income not chargeable to tax, exceeding five thousand rupees.”;

(b) in sub-rule(2), the following proviso shall be inserted, namely:-

“Provided that where an assessee is required to furnish a report of audit under sections 44AB, 92E or 115JB of the Act, he shall furnish the same electronically.”;

         (c) in sub-rule (3), in the proviso,-

(A) in clause (a),─

(i) for the words “an individual or a hindu undivided family”, the words “a person, other than a company and a person required to furnish the return in Form ITR-7” shall be substituted;

(ii) for the words “ten lakh rupees” the words “five lakh rupees” shall be substituted;

(iii) for the figures “2012-13”, the figures “2013-14” shall be substituted;

         (B) after clause (aaa), the following clause shall be inserted, namely:- 

“(aab) a person claiming any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act, shall furnish the return for assessment year 2013-14 and subsequent assessment years in the manner specified in clause (ii) or clause (iii);”

(C) in clause (b), after the words, brackets and figure “in clause (i)”, the words, brackets and figures “or clause (ii) or clause (iii)” shall be inserted. 

 (d) in sub-rule 4, after the words, brackets and figures “of sub-rule(3)”, the words and figures “and the report of audit in the manner specified in  proviso to sub-rule (2)” shall be inserted.

           (e) in sub-rule (5), for the figures “2011”, the fig

3. In the said rules, in Appendix-II, for “Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V”, the “Forms SAHAJ (ITR-1), ITR-2, ITR-3, SUGAM (ITR-4S), ITR-4 and ITR-V” shall be substituted.

[Notification No. 34 /2013/ F.No.142/5/2013-TPL]

(Gaurav Kanaujia)

Deputy Secretary to the Government of India

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax (2nd Amendment) Rules, 2013 vide notification S.O.No.410 (E) dated 19th February, 2013.

Income Tax on Agricultrual Income

Friends

Agricultural income is exempt from income tax. But slab tax effects the income tax as and when an assesses has Other income alongwith agricultural income.

How to calculate Income Tax having agricultural income + other income

As we know that our income tax slab is 10%,20% and 30%

For calculating income tax having agricultural income initially we have to calculate income tax on other income+ agricultural income, and then threshold limit of income tax+ agricultural income. Example in detail is given as under :-

Calculate your Income Tax On line (Click Here)

Calculate exemption of H.R.A. on line (Click Here)

Example :-

Your other income is Rs. 7,00,000.00

Your Agricultrual Income is Rs. 1,25,000.00

Individual Status is Women

Calculation Method for Assessment Year 2010-11:-

a) Calculate Income Tax on Rs. 8,25,000 (7,00,000+1,25,000) = (Other income+Agricultural income)

b) Calculate Income Tax on Rs. 3,15,000 (1,90,000+1,25,000) = (Threshold limit+ Agricultural income)

Threshold Limits of Income Tax are given as under :-

Senior Citizen = 2,40,0000

Women (Not Senior Citizen) = 1,90,000

Man(HUF, Trust etc.) =1,60,000

Calculate your Income Tax On line (Click Here)

Income Tax in above example will be as under : -

on Rs. 8,25,000 (7,00,000+1,25,000) = 1,48,500.00 (excluding cess)

on Rs. 3,15,000 (1,90,000+1,25,000) = 14,000.00 (excluding cess)

on Rs. 7,00,000 (other income) = = 1,11,000.00 (excluding cess)

Now, you have to pay income tax Rs. 1,48,500- 14,000 = 1,34,500=00

Extra tax due to Agricultural Income is Rs. 23,500 (134500-111000)

Calculate your Income Tax On line (Click Here)

Calculate exemption of H.R.A. on line (Click Here)

Exemption from Filling of Income Tax Return

Friends,  Now a days , many persons are waiting for Notification for exemption from filling of Income Tax Return.  Without notification nothing is clear like from which Financial Year exemption will be given, having interest income on Saving Bank Deposit will be treated  for exemption for filling of Income Tax Return etc. 

NO NEED TO FILE INCOME TAX RETURN

         Now CBDT has clearly notified that an individual  getting salary upto 5 Lakh after allowing all deductions from a single employer and getting interest income up to Rs. 10,000 from his Saving Bank Deposit account will be eligible to get exemption from filling of Income Tax Return from the Financial Year 2010-11 with some conditions like he will provide his PAN number to our employer and will  submit complete bank interest detail and also pay all amount of Income Tax in the shape of TDS deduction from salary and also receive form 16 from his employer.  There are some more conditions in which exemption for filling of Income Tax return will not be provided.  Therefore , all individuals are requested to read complete Notification which is given below  issued by CBDT before getting exemption for filling of Income Tax Return. 

No.402/92/2006-MC (14 of 2011) 

Government of India / Ministry of Finance 

Department of Revenue 

Central Board of Direct Taxes 

***

New Delhi, dated the 23rd June, 2011 

PRESS RELEASE 

The Central Board of Direct Taxes has notified the scheme exempting salaried  taxpayers with total income up to Rs.5 lakh from filing income tax return for assessment year  2011-12, which will be due on July 31, 2011. 

Individuals having total income up to Rs.5,00,000 for FY 2010-11, after allowable  deductions, consisting of salary from a single employer and interest income from deposits in  a saving bank account up to Rs.10,000 are not required to file their income tax return. Such  individuals must report their Permanent Account Number (PAN) and the entire income from  bank interest to their employer, pay the entire tax by way of deduction of tax at source, and  obtain a certificate of tax deduction in Form No.16.  

Persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme. 

The scheme shall also not be applicable in cases wherein notices are issued for filing  the income tax return under section 142(1) or section 148 or section 153A or section 153C of  the Income Tax Act 1961.

xxxx

Notification 


NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)]

DATED 23-6-2011

In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—

Class of Persons

1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—
   (A)  “Salaries”;
   (B)  “Income from other sources”, by way of interest from a savings account in a bank, not exceeding ten thousand rupees.
   Conditions
2. The individual referred to in para 1,—
   (i)  has reported to his employer his Permanent Account Number (PAN);
   (ii)  has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;
   (iii)  has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;
   (iv)  has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;
   (v)  has no claim of refund of taxes due to him for the income of the assessment year; and
   (vi)  has received salary from only one employer for the assessment year.
3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.
4. This notification shall come into force from the date of its publication in the Official Gazette.

Last circular vide which e-filing was mandatory for those whose total income exceeds 10 lakh. 

MANDATORY e-FILING OF INCOME TAX RETURN

PRESS RELEASE [NO. 402/92/2006-MC (12 OF 2012)], DATED 2-7-2012

CBDT has issued notification S.O. 626(E), dated 28th March 2012 vide which e-Filing has been made compulsory for Assessment Year 2012-13 onwards for :

  •  an individual or a Hindu undivided family, if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceeds ten lakh rupees; and

  •  an individual or a Hindu Undivided Family (HUF), being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India and required to furnish the return in Form ITR-2 or ITR-3 or ITR-4.

However, digital signature will not be mandatory for these taxpayers and they can also transmit the data in the return electronically and thereafter submit the verification of the return in Form ITR-V.

2. Filing of returns electronically under digital signatures is already mandatory for any company required to furnish the return in Form ITR-6 or a firm required to furnish the return in Form ITR-5 or an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable.

3. The Income Tax Department has received a record number of 1.64 crore income tax returns electronically in the year 2011-12. E-filing is an easy, fast and secure method of filing of income tax return. The electronically filed returns are processed at the Centralized Processing Centre, Bengaluru. The processing for e-filed return is faster and taxpayers get their refunds, if due, quickly. The Department also provides some value added services like tracking of refunds, viewing tax credit status (Form 26AS), e-mail and SMS alerts regarding status of processing and refunds to taxpayers who e-file their returns.

(If you are not cover in above Exemption, You should file your Income Tax Return in Time,
to submit return yourself (click here))