Monday, 26 March 2012

Amendments for June 2012 exam


Amendments for June 2012 exams

Service Tax

Point of Taxation Rules, 2011




1.      Applicable from 1-4-2011.
2.      Definition: - “Point of taxation”:- means the time when a service shall be deemed to have been provided.
3.      Determination of Point of taxation (service treated to be provided when)

(i)                   If Invoice is issued in 14 days from completion of service:-

Date of Payment    or            date of invoice
whichever is earlier.

(ii)                 If invoice is not issued in 14 days of completion of service:-

Date of Payment    or            date of completion
whichever is earlier.
Explanation:- If any advance is received, the date of receipt of each advance shall be point of taxation.
      The applicability of the rule will be clear from the illustrations in the following table:
S. No.
Date of completion of service
Date of invoice
Date on which payment recd.
Point of Taxation
Remarks

1.

April 10, 2011

April 20, 2011

April 30, 2011

April 20, 2011
Invoice issued in 14 days and before receipt of payment

2.

April 10, 2011

April 26, 2011

April 30, 2011

April 10, 2011
Invoice not issued within 14 days and payment received after completion of service
3.
April 10, 2011
April 20, 2011
April 15, 2011
April 15, 2011
Invoice issued in 14 days but payment received before invoice

4.

April 10, 2011

April 26, 2011
April 5, 2011 (part) and
April 25, 2011
(remaining)
April 5, 2011
and
April 10, 2011 for respective amounts
Invoice not issued in 14 days. Part payment before completion, remaining later









4.      Change in effective rate of tax
(a)              Service provided before change in rate:-
(i)       After change invoice issued and payment received:-
Date of invoice or payment whichever is earlier.
(ii)     Invoice before change but payment received after change:-
Date of invoice.
(iii)    Payment received before change but invoice after change:-
Date of Payment.

(b)              Service provided after change:-
(i)       Invoice before change but payment received after change:-
Date of Payment.
(ii)     Before change invoice issued and payment received:-
Date of invoice or payment whichever is earlier.
(iii)    Payment received before change but invoice after change:-
Date of invoice.

5.      New Service:- A service is taxed for the first time then:-
(a)     Before becoming taxable invoice issued and payment received
No Tax payable.
(b)     Payment received before tax and invoice issued in 14 days ( as per rule 4A of STR)
No Tax payable.




6.      Continuous Supply of Service(service provided for more than 3 months or any service specified by CG.)

Same as in Rule 3. 
If contract requires receiver to make payment to the provider on the completion of an event periodically, the date of completion of each such event specified in the contract shall be deemed to be the date of completion of service.

7.                  Specified persons:-
(a)                 Export of Service (when forex is not received, it is taxable)
(b)                Reverse Charge* u/s 68(2)
(c)                 Individual or partnership firms providing service of :- (i) Architect               (ii) Interior decorator
(iii) CA/CS/CWA (iv) Scientific & technical consultancy (v) Legal services & (vi) Engineer -added after budget. (when receiver despite  provider,  becomes liable to pay service tax)
the date on which payment is made.


Cash or Accrual System
6 Specified Services
Individual /Firm
Others
CASH BASIS
ACCRUAL BASIS
ACCRUAL BASIS
Other Services
 














8.      Copyrights, patents, trademarks:- In such cases consideration arises by the use of such rights.  The service shall be deemed to have been provided each time when payment is received or invoice is issued whichever is earlier.


Payment of service Tax , Rule 6 of STR,1994


1.        Due Date for payment:-                                                                                       

The service tax shall be paid by the

(i)     5th of the, month following the calendar month in which the [service is deemed to be provided].
(6th if paid electronically)

(ii)   In case of an individual or partnership firm, the service tax shall be paid by the 5th of the month following the quarter in which [service is deemed to be provided].
(6th if paid electronically)





But the service tax on [the service deemed to be provided] during March, or the quarter ending in March, shall be paid by the 31st March.

Provided that where
®           total service tax is of rupees ten lakhs or more
®           including the amount used as CENVAT credit (taxes paid on services used),
®           in the preceding financial year,
he shall deposit the service tax electronically, through internet banking.

2.        Deposit of tax:-

The assessee shall deposit the service tax with the bank designated by CBEC in Form GAR - 7.                                                                                                                                                                                                                                
Date of deposit in case of cheque :-
If the assessee deposits the tax by cheque, the date of presentation of cheque* to the bank shall be deemed to be the date on which tax has been paid subject to realization** of that cheque.

3.       Payment of excess tax on his own:-                                                                       (May 2011 4 marks)

Every person liable to pay service tax, may, on his own
ü   pay service tax in advance to the credit of Central Government and
ü   adjust the amount so paid against the service tax of subsequent period.
Assessee shall
(i)     intimate the amount deposited to the Supdtt within 15 days from the date of payment.
(ii)   Indicate the details of advance payment and adjustment in the subsequent return.
4.           Adjustment of tax paid but amount changed/refunded:-
(i)Where an assessee has issued an invoice and
®                  the amount of invoice is renegotiated and
®                  the assessee has issued a credit note
                           
OR
(ii)Assessee has received any payment for service to be provided
®                  which is not provided wholly or partially for any reason
®                  and the assessee has refunded the payment
       
the assessee may take the credit of the excess service tax so paid.

[If the amount of invoice is renegotiated due to deficient provision or in any other way changed in terms of conditions of the contract (e.g. contingent on the happening or non-happening of a future event), the tax will be payable on the revised amount provided the excess amount is either refunded or a suitable credit note is issued to the service receiver.  However, concession is not available for bad debts. Circular by CBEC]

5.        Adjustment of excess tax paid

Where an assessee                              
® has paid any amount in excess of the amount required to be paid
® the assessee may adjust such excess against the service tax liability for the next quarter/month.





Such adjustment shall be possible only if the following conditions are satisfied.
(i)        excess amount paid by assessee having centralized registration, because of delayed receipt of details of payments can be adjusted without any limit.
(ii)      for others the maximum amount that can be adjusted is ` [2,00,000] for a relevant month or quarter.
(iii)    the details of such adjustment shall be intimated to Supdtt within 15 days from the date of such adjustment.

6.        Provisional  Assessment:-                                                                                                            (Nov 2007 2 Marks)
Where an assessee is, for any reason,
®      unable to correctly estimate the actual amount payable,
®      he may request to the AC/DC giving reasons, for payment of service tax on provisional* basis and                   (temporary/which is not fixed)
®      AC/DC, on receipt of such request, may allow payment of service tax on provisional basis, on such value as may be  specified by him and
®      where an assessee requests for a provisional assessment he shall file a statement giving details of the difference between the service tax deposited and the service tax liable to be paid
®      in a memorandum in Form ST-3A accompanying the half yearly return.


7.        Special provisions for calculation of tax:- (Special rates of tax)

(a) Air travel agent has option to pay tax @ [0.618%] of basic fare-domestic and @ [1.236%]- international bookings instead of 10.3% of value of taxable service. 
(b) [If the whole premium is not towards risk cover in life then insurer has the option to pay
(i) tax @ 10.3% on the gross premium charged reduced by the amount of investment or savings on behalf of policyholder, if such amount is intimated to policy holder     or
(ii) [1.545%] of gross premium as tax .]
(c) A foreign exchange broker, authorized dealer in foreign exchange or authorized money changer shall have the option to pay tax at following rate. 
        But such option shall not be available if commission is shown separately in the invoice.

Amount of currency exchanged
Rate of service tax
1.
Upto ` 1,00,000
0.1%,minimum 25 `
2.
Exceeding ` 1,00,000 upto 10 Lakhs
` 100 + 0.05%
3.
Exceeding `10 Lakhs
` 550 + 0.01%,Maximum 5,000 `

Note:- 3% cess shall be added in the final tax.

For a currency when exchanged from, or to Indian Rupees (INR)

For a currency, when exchanged from, or to , Indian Rupees (INR), the value shall be equal to the difference in the buying rate or the selling rate, as the case may be, and the Reserve Bank of India (RBI) reference rate for that currency at the time of exchange, multiplied by the total units of currency.

Example I:

US$ 1,000 are sold by a customer at the rate of `45 per US$. RBI reference rate for US$ is ` 45.50 for day.
Value of taxable service = (RBI reference rate for $ - Selling rate for $) x Total Units.
                                                    = `(45.50 – 45) x 1,000
                                                    = ` 0.50 x 1,000
The taxable value shall be `500.






Example II:
INR 70,000 is changed into Great Britain Pound (GBP) and the exchange rate offered is ` 70, thereby giving GBP 1,000.RBI reference rate for that day for GBP is `69.

The taxable value shall be ` 1,000.

(d) The distributor or selling agent, liable to pay service tax for the taxable service of promotion, marketing or organising lottery, shall have the option to pay tax at the following rates:-
S.No.
Rate
Condition
1
` 6,180 on every ` 10 lakhs (or part thereof) of aggregate face value of lottery tickets printed by the organizing state for a draw
If lottery scheme is one where guaranteed prize payout is more than 80%.
2
` 9,270 on every ` 10 lakhs (or part thereof) of aggregate face value of lottery tickets printed by the organizing state for a draw
If lottery scheme is one where guaranteed prize payout is less than 80%.

Face value :                                      it is the amount mentioned on the lottery ticket.
Aggregate Face Value :              face value of lottery x the number of tickets printed
Guaranteed Prize Payout :        the agreed aggregate prize money distributed to all the winners


Provided further that the distributor or agent shall exercise such option within a period of one month of beginning of each F/Y and such option shall not be withdrawn during the remaining part of the F/Y.                                                                                                                                  (Nov 2011 4Marks)
Interest on late (delayed) payment,  Section 75



                                                                                           


If payment is made after due date, interest has to be paid u/s 75 on

®         Amount of tax liable to be paid

®         for the period for which such amount of tax or part thereof is delayed.

Govt. shall fix rate of interest not less than 10% p.a. but not more than 36% p.a.  Presently rate of interest is [18% p.a.]
[But if the value of taxable services provided during the current year or in the preceding financial year does not exceed 60 lacs, rate of interest shall be reduced by 3%.]

Interest on amount collected in excess, Section 73B



·         Where an amount has been collected, in excess of the tax assessed or which is not required to be collected as service tax,
·         the person shall in addition to the amount, be liable to pay interest at the rate not below 10% and not exceeding 24%.
·         Presently govt. has fixed the rate @ [18% p.a.]

[But if the value of taxable services provided during the current year or in the preceding financial year does not exceed 60 lacs, rate of interest shall be reduced by 3%.]





Service Tax Code (STC)




Popularly it is also called STC.  It is the unique number of every person under service tax.  It contains 15 digits.  First 10 digits are of permanent account number of income tax and remaining 5 relating to service tax. 
Main objective of this alphanumerical number is to identify the assessee.
This number has to be mentioned in all the returns, challans and other dealings with the service tax department.
By this all the information of a person relating to income tax are connected with the service tax.
With the help of STC an officer can check what information a person has provided in income tax and what in service tax. 

Rule 7 of STR,  1994




1.     Mandatory e-filling of service tax return:

As per NN 43/2011 following proviso has been deleted:

Provided that where an assessee has paid a total service tax of rupees ten lakh or more  including the amount paid by utilization of CENVAT credit, in the preceding financial year, he shall file the return electronically.

Following has been inserted:
        “Every assessee shall submit the half-yearly return electronically.”

2.   Extension in date of filing Service tax return

CBEC has extended the date of submission of half yearly return for the period April 2011 to September 2011, from 25th October 2011 to 6th January 2012, from 6th January 2012 to 20th January 2012.  But this has been done only for the Return of the period April to September 2011.

3.     Procedure for e-filing  of service tax returns and for electronic payment of service tax:

The DG (Systems) has issued comprehensive instructions outlining the procedure for electronic filing of the Service tax Return and electronic payment of taxes under ACES. The said instructions outline the registration process for the new assessees, non-assessees and the large tax payer units, steps for preparing and filing of return, use of XML Scheme for filing dealer’s return, procedure for obtaining acknowledgement of e-filed return, procedure for e-payment etc.  













Taxable Services , Section 65(105)




It is clarified that in Part –II : Service tax and VAT of Paper 4 : Taxation, students will be examined only in respect of the following taxable services:
1.      Practicing Chartered Accountant’s services
2.        Consulting engineer’s services
3.      Commercial training or coaching services
4.      Information technology software services
5.      Scientific and technical consultancy services
6.      Technical testing and analysis services
7.      Mandap keeper services.
8.      Business exhibition services.


Section 65(105) Taxable service: - means any service provided or to be provided to any person for cash or deferred payment or any other valuable consideration, by a ………….

1. “Practicing chartered accountant”–                          
Who is member of the ICAI and
®               is holding a certificate of practice granted under the provisions of the Chartered Accountants Act, 1949 (38 of 1949)
®               and includes any concern engaged in rendering services in the field of CA.

Note:- All persons whose names are entered in the register maintained under the provisions of the ICAI Act shall be known as members of the institute.
Hence services provided by CA in respect of
(a)   Preparing and filing of returns (Income tax, service tax, VAT etc.)
(b)   Providing opinions on any matter including taxation, preparation of project report

(c)   Providing consultancy on any issue including taxation
(d)   Conducting audit, certification etc.
(e)   Appearing on behalf of client in any court etc.
      are taxable.

2. “Consulting engineer”
®         Who is professionally qualified
®         Includes any firm, body corporate
®         advice, consultancy or technical assistance 
®         in one or more disciplines* of engineering                     (any branch)
®         including hardware and software engineering.

*    “Engineer should be engaged in a profession of engineer holding any diploma or degree.”
Any cess paid by an engineer on transfer of technology can be deducted from the gross amount charged.
     Notification No. 46/2011 ST:
The deduction is allowable only if the R&D cess is paid within six months from date of invoice. Records of R&D cess should be kept to establish linkage between the taxable service and the R&D cess paid.

Illust The value of service provided by a consulting engineer is ` 10,00,000 (exclusive of service tax). He has paid ` 50,000 as cess under Section 3 of the Research and Development Cess Act, 1986. What is the amount of Service tax payable by him?

Ans.  Service tax of ` 10 lakhs is 1,00,000. R&D cess paid is ` 50,000, which is allowable as deduction. Hence, net service tax payable is ` 50,000. Education cess @ 2% on the service tax is ` 1,000 and SAH education cess @ 1% of service tax is ` 500. Hence, total service tax payable is ` 51,500.

3.  "Commercial training or coaching
Explain the term “Commercial training or coaching centre.”                   (May 2010, 2 Marks)
®               institute providing commercial training or coaching
®               imparting skill or knowledge  or lessons
®               on any subject or field
®               With or without profit motive
         Other than
ü          sports,
ü          preschool,
ü          [any training leading to certificate or qualification recognised under any law],
ü          Vocational training i.e. giving skills so that trainee can do any job or business after such training.
      It means industrial training institute (ITI) or other approved organisation and
ü          Recreational training relating to activities such as dance, singing, martial arts or hobbies.
ü          Individuals providing services at the premises of the receiver are not taxable.
                                                                                                        (authorize, to be officially connected with a larger organization or group)



Clarification as to whether the service tax is leviable on the Flying Training schools and Aircraft Maintenance Engineering Institutes:

CBEC has clarified that the coaching provided by such academies will not come under the scope of aforesaid exemption. The course certificates by these academies cannot be held as “recognized in law” for the purposes of service tax exemption unless and until the course is specifically recognized by law which is not so in the current case. The term “recognized by law” has to construe a direct nexus between the degree/ certificate being awarded by the Coaching Centre and the Statute.

PQ Explain the term “Vocational Training Institute” under the  provisions of Service Tax.                              (Nov 2009 2 Marks)
Ans.    Vocational Training Institute is an institute which gives skills to help the trainee to get job or start his own business after such training.
But now exemption is not granted to all types of institutes.  Exemption is granted only to industrial training institute (ITI) or recognized training centre.


Type of coaching
Taxable/Not Taxable
1.
Imparting Training in field of sports

2.
Coaching/ Tutorial Classes

3.
Running crèche/play homes

4.
Institutes conferring certificates recognized in India

5.
Coaching provided at service receiver premises (student)
individual sent by coaching or training centre

6.
Coaching provided by an individual without opening any coaching centre or institute













Coaching - Whether ‘donation' is ‘consideration' Circular

*    If donation is not specifically meant for a person, but is in general meant for the charitable cause.  In such a situation, service tax is not leviable, since the donation or grant-in-aid is not linked to specific trainee or training.

4. ‘Information Technology Software Service’

Means any service provided:
à         In relation to information technology software
à         Whether or not used in the business or commerce  
It includes
à         Development of software.
à         Upgradation, implementation and other similar services in relation to IT software.
à         Providing advice and assistance on the matters relating to IT   software.
But does not include services provided 
(a)        to government or
(b)        to charitable institutions
The taxable service of providing the right to use the packed/canned software, pre-packed in retail packages intended for single use has been exempted from service tax under the information technology service if excise duty or custom duty has been paid on it.

“Information technology software” means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form, and capable of being manipulated or providing interactivity to a user, by means of a computer or an automatic data processing machine or any other device or equipment.
5. “Scientific or technical consultancy”
®      by a scientist or a technocrat*, or any institution or organization                      [*technical expert]

®      to any person
®      in disciplines of science or technology.
Doctors are not covered, as in common parlance they are not known as scientists, technocrats etc.
 6. “Technical testing & analysis”
®      physical, chemical, biological or other scientific testing or analysis
®       of goods or material or information technology software or any immovable property
®      includes clinical testing of drugs and formulation.
But does not include
à      testing of humans beings or animals .
à      service related to Water quality testing undertaken by Laboratories run by Government.
à      testing of newly developed drugs or vaccines by approved organisation.
à      testing and analysis of seeds done by Central and State Seed Testing Laboratories.

7. “Mandap keeper”-                                                                                  
Temporary occupation of
®   any immovable property
®   includes any furniture, fixtures, light fitting and floor coverings
®   for official, social or business function
      Exempt at religious places.
      -        Abatement* of 40% shall be given if providing catering service also i.e. supply of food
                (satisfying meal).                                                                                (Discount; a deduction from the full amount of a tax)

Scope of taxable Service –

The definition of mandap is very wide. It covers all immovable property let out for organizing social, official or business functions. It includes within its scope places like marriage halls, banquet halls, conference halls etc. Hotels and restaurants providing any such facility within their premises for organizing any social, official or business function shall also be included in the coverage of service tax.

CQ.96    A Banquet Hall charged 5,00,000 ` for the hall and catering charges.  Calculate service tax.

Ans.         Gross Amount                                                                                                5,00,000
                  Less: Abatement                                                                          2,00,000
                  (40/100 x 5,00,000)
                  Taxable Value                                                                                                3,00,000
                  Service Tax                                                                                       30,900
                  (10.3/100 x 3,00,000)
                 
8. “Business Exhibition”

      means an exhibition
(a)       to market; or
(b)       to promote; or
(c)       to advertise; or
(d)       to showcase
®        any product or service,
®        intended for the growth in business.
But it does not include any business exhibition held outside India.

Scope of taxable Services – Organizers of events such as trade fairs, road shows, fashion shows, display show-cases kept in airports, railway stations, hotels etc. would be covered under this new levy.
A display of consumer goods in shops or shopping centers for customers to select and purchase would normally not attract any service tax, as normally no separate charges are collected by the shop-keepers for displaying such goods. However, in case an amount is collected for merely displaying an item, the same would be chargeable to service tax.


VAT

No amendments have been made in VAT section.















AMENDMENTS IN INCOME TAX

Salary




1.              For full P/y 11-12 rate of interest shall be 9.5% on RPF.
          

 2.        Allowances allowed to transport employees:                                                                                   
              (a) 70% of such allowance or
                                    (b) ` 6,000 10,000 p.m.  whichever is less. 

3.                 Notification No.33/2011:
The CBDT has through this notification, amended the Notification No. S.O. 627(E)  to include cash benefits to a  member of the fund to meet the cost of annual medical tests or medical checkups of a member , his spouse and dependent children as one of the purposes of the fund.
Thus,  income received by any person on behalf of a fund established for the purpose of providing cash benefits to its employee-members to meet the cost of annual medical tests or medical checkups to qualify for benefit of exemption under Section 10(23AAA).

4.                    Notification No.  49/2011:
The central government has notified the following allowances and perquisites for serving Chairman and members of UPSC, for the purpose of exemption u/s 10 (45):
(i)                   The value of rent free official residence,
(ii)                 The value of conveyance facilities including transport allowance,
(iii)                The sumptuary allowance and
(iv)                The value of leave travel concession.
In case of retired Chairman and retired members of UPSC, the following have been notified for exemption u/s 10(45):
(i)                   A sum of maximum `14,000 per month for defraying the service of an orderly and for meeting expenses incurred towards secretarial assistance on contract basis.
(ii)                 The value of a residential telephone free cost and the number of free calls to the extent of `1,500 pm (over and above free calls per month allowed by the telephone authorities)
This notification shall be effective retrospectively from 1st April,2008.


Exemptions



1.        Notification No. 52/2011:
Specification of bonds for interest exemption u/s 10(15)(iv)(h)
Section 10(15) exempts interest payable by any public sector company in respect of such bonds or debentures specified by Central Government by notification in the Official Gazette.
Accordingly, the central government has specified the issue of tax free, secured, redeemable, non-convertible bonds of NHAI, Indian Railways Finance Corporations Ltd.(IRFCL), Housing and Urban Development Corporations Ltd.(HUDCL) and Power Finance Corporation(PFC).
The tenure of bonds shall be 10 to 15 years.







Profits and Gains from Business or Profession





1.        Scientific Research Expenditure,   Section 35
Weighted deduction for Donations for research:(whether related to business or not)
   Deduction shall be allowed of 125% of sum paid to
(i)     any national laboratory or university or approved bodies to be used for social science or statistical research.
 (ii) an approved Indian company, whose main object is scientific research and development.   
          [Deduction of 200% shall be allowed of sum paid to scientific research association or to a university or approved bodies to be used in scientific research for approved programme.
                If donation to is not for approved programme then deduction shall be 175%.]   

                                                        

2.                                      Capital expenditure on capital business, Section 35AD
      Assessee shall be allowed 100% deduction of Capital Expenditure for the Specified business.

  But no deduction shall be allowed for Land or goodwill.
      Specified business shall mean                                        
(i)     Setting up and operating a Cold chain facilities* for storage.(it is a temperature controlled supply chain)
(ii)   Transportation and warehousing of agricultural produce, Dairy products and other related items;
(iii) Developing and building a housing project under a scheme for Affordable housing.                
(iv)  Building and operating, anywhere in India, a new Hotel of two star or above category.
(v)    Developing and building a housing project under a scheme for Slum rehabilitation*.   (To restore to good condition or useful life as through education)
(vi)  Laying and operating natural Gas/crude/petroleum oil pipeline network for distribution
(vii)   Production of fertilizer in India.
(viii)    Building and operating, anywhere in India, a new Hospital with at least 100 beds for patients.                  [Added by FA 2011]
                                                                               

Any expenditure incurred before starting business shall be allowed deduction in the year of commencement.  The amount should be capitalized in the books.
If deduction is claimed under this section then no deduction shall be allowed under any other provisions.      
                                        
Specified business shall mean                                                                                              
à         Developing and building a housing project under a scheme for slum rehabilitation.
à         Developing and building a housing project under a scheme for affordable housing.      
à         Production of fertilizer in India.                                                  [Inserted by F.A. 2011]

3.     Expenses allowed deductions u/s 36(1):                                                               

 Employer’s contribution to recognised provident fund.

-          Employer’s contribution towards the New Pension Scheme upto 10% of the salary of the employee.                                    [Applicable retrospectively from 1-4-2010]

Refer same in Expenses allowed – Deduction u/s 40A.




Capital Gains
 




                                                                                                                                
1.        CII (Cost Inflation Index) for A/Y 2012-13 = 785


2.        Capital Gains:- Indexed Cost of Acquisition and Gifted house:
The Bombay High Court in the decision of Manjula J Shah has given judgment on the year of indexation in case of an asset acquired under gift etc. This decision not only applies to the capital asset acquired under a gift or a Will but also under amalgamation, demerger, etc. Hence, while transferring an asset acquired as a gift, Will, etc., indexation can be claimed for the year in which the asset was held by the previous owner.
But as per Study Material and Suggested Answer of ICAI indexation is done from the year in which the asset was held by the assessee.











Deductions
 




1.      As per section 80CCE                     

Total deduction under section 80C, 80CCC and 80CCD (except contribution by the employer towards Notified Pension Scheme) cannot exceed ` 1,00,000.
2.        Notification No. 50/2011:
Following are the long term infrastructure bonds specified by Central Government for the purpose of deduction under section 80CCF for the F.Y. 2011-12:
(i)                 The Industrial Finance Corporation of India(IFCI),
(ii)               The Life Insurance Corporation of India(LIC),
(iii)             The Infrastructure Development and Finance Company Ltd.(IDFCL),
(iv)              The Infrastructure  Finance Company Ltd. (IIFCL) and
(v)                Non-Banking Finance Company as an Infrastructure Finance Company by Reserve Bank of India.
The tenure of the bond shall be for a minimum period of ten years. The minimum lock-in period for investors shall be 5 years. Further it shall be mandatory for the subscribers to furnish their PAN to the issuer.

























Total Income
 




1.       Rates of Income Tax for A/Y 2012-2013                            

(i)        For woman: No change has been made in slab rates for women.
(ii)      For an Individual (man or woman), resident in India who is of the age of 65 60 years or more but less than eighty years at any time during the previous year.

Upto ` 2,50,000
Nil
` 2,50,001 to ` 5,00,000
10%
` 5,00,001 to ` 8,00,000
20%
Above ` 8,00,000
30%


Age of senior citizen:
Senior citizen in the entire Act means a person who is resident in India and has attained the age of 65 years or more at any time during the p/y.

Note: The age of 65 years has been reduced to 60 years only for tax rates, for all other purposes
it shall remain 65 years.

(iii)    Individuals, [other than those mentioned in above] HUF.

Upto `  1,80,000
Nil
`  1,80,001 to ` 5,00,000
10%
` 5,00,001 to ` 8,00,000
20%
Above ` 8,00,000
30%

(iv)     For an Individual (man or woman), resident in India who is of the age of 80 years or more at any time during the previous year. [Very senior citizen].
` 5,00,000
NIL
` 5,00,001 to ` 8,00,000
20%
Above ` 8,00,000
30%
                                                               
                                                       
                                                         
Charitable Trusts
                                                                                                                                                                                            


1.       Definition of charitable purpose Section 2(15)                                                                                           
The carrying on any activity in the nature of trade, commerce or business for ‘advancement of any other object of general public utility’ is to be considered as for ‘charitable purpose’ provided aggregate receipts from such activities are 10,00,000 25,00,000 ` or less in the relevant F/Y.             
                                                                                                      (Changed by F.A. 2011)(w.e.f. 1.04.2012)