A to Z of current Income Tax Provisions at a glance

A to Z of income Tax Provisions at a glanceA to Z of current Income Tax Provisions at a glance

I have received one interesting message in my Whatzapp which was floating around. This is about all current Income Tax Provisions at a glance. I thought I can add and update few of them and publish this as an article. Here is the A to Z of current Provisions in Income Tax. Spend few minutes to understand these IT provisions so that you not refer several articles on various frequently asked questions about Income Tax or Income Tax filing. I am giving you 62 checklist on income tax provisions in India.

A to Z of current Income Tax Provisions at a glance

1. Detailed information of Income Tax is available on www.incometaxindia.gov.in

2. As per Income Tax Act, Income is taxable under five heads – Salary, House Property, Business or Profession, Capital Gain and Other Sources.

3. Salaried person must obtain Form 16 from his Employer Every Year. Generally it is given during May/Jun of the year pertaining to previous financial year so that income tax filing can be done by end of July. This year, it is extended to 31-Aug. Do you know that salaried individuals can claim upto Rs 10 Lakhs as tax free income depending on the employers?

4. Income Tax Return should be filed by considering Form 16 and other Income. Other income includes any returns from bank FD etc.,

5. Transport Allowance is exempt up to Rs.1,600 per month.

6. 30% Standard deduction is available on Income from House Property.

7. Income to be considered as deemed let out on second House property.

8. For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and for other house property actual expenditure of Interest on Housing Loan is allowed. Means you can claim unlimited interest on second housing loan.

9. Repayment of Principal amount of Housing Loan is deductible u/s 80C up to Rs.150,000/-.

10. Tax Audit is compulsory if sales turnover exceeds Rs.1 Crore in case of business.

11. Tax Audit is compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.

12. If sales turnover is below Rs. 1 crore, then net profit of 8% or higher is to be taken as business income otherwise tax audit is required.

13. The Due Date for Tax Audit and income Tax Return is 30th September.

14. Assessee other than Company and those eligible for Tax Audit are required to file Income Tax Return before 31st of July. Extended date is 31st Aug for F.Y. 2014-15.

15. Gifts received form stranger of an Amount exceeding Rs.50,000 is taxable. You should understand Gifts tax rules and exemptions so that you can plan your income tax.

16. Cash payment should not be made to a person in single day exceeding Rs.20,000.

17. Cash Payment limit for Transporters is Rs.35,000/-.

18. Loans, deposits and Immovable Properties transactions should

not be carried out above Rs.20,000 in cash.

19. Business loss can be carried forward to Next 8 Years.

20. Tax Audit applicable assesses should deduct TDS on particular transactions.

21. TDS should be made on the date of Credit or Payment basis of whichever is earlier.

22. TDS payment should be made on or before 7th day of Next Month.

23. TDS Returns are to be filed Quarterly.

24. TDS returns can be revised any number of times.

25. TDS should be deducted and paid if applicable.

26. If TDS is not deducted then deduction of 30% of Expenditure is not allowed.

27. Late filling of TDS return attracts late filing fees of Rs.200 per day.

28. Long Term Capital Gain will arise if transfer of specified Capital Assets is made after 3 years. There are several ways to save long term capital gain on sale of house property.

29. Generally Long Term Capital Gains is taxable @ 20%

30. STT paid Long Term Capital Gain on Shares etc is exempt from Tax.

31. Short Term Capital Gain is Taxable @ 15% if STT is paid.

32. Capital Gain on Immovable Properties is chargeable at Stamp Duty Value or Selling Price whichever is higher.

33. Dividend received from domestic company is exempt from Tax. Means if you are receiving any dividends from companies where you have purchased shares, such dividend is tax free. Generally you should invest in investment options where returns are tax free in India. 

34. Agricultural Income is exempt from Tax.

35. Accurate Stock Valuation should be done on 31st of March.

36. Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.

37. Maximum deduction limit u/s 80C, 80CCC and 80 CCD is Rs.1,50,000.

38. Deduction of Medical Insurance Premium is available up to Rs. 25,000.

39. Deduction of Medical Insurance Premium paid for Parents is available up to Rs. 20,000.

40. Deduction limit of Interest earned on Saving Account is up to Rs.10, 000.

41. Income earned by a Minor child is clubbed in the hands of Parents.

42. Every Taxpayer should verify his Form 26AS.

43. Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.

44. Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.

45. Basic Exemption Limit for individuals for FY2015-16 is Rs.250,000.

46. Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs.300,000.

47. Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs.500,000.

48. Advance Tax is to be paid if Tax Liability during the year exceeds Rs. 10,000.

49. 12% of Surcharge is applicable if Income Exceeds Rs. 1 Crore.

50. Income Tax Return should be filed if Income exceeds Basic Exemption Limit.

51. 30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.

52. For Companies – Minimum Alternate Tax and for other Assesses – Alternate Minimum Tax rate is 18.5%.

53. Details of all Bank Accounts have to be given in Income Tax return.

54. Passport number is required to be given in Income Tax return.

55. Detail of Fixed Assets held in Foreign Country is required to be given in Income Tax return.

56. If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs.2,000/- is available in Tax.

57. Aadhar Card No. is required to be mentioned in Income Tax return.

58. E-filling of return is compulsory if income exceeds Rs. 5 lakhs. With some simple steps you can now how to do e-filing  of Income Tax Returns online in India.

59. In Income Tax, E-filling of return can be done for Previous 2 years only. You can review our article on how to file income tax returns for previous years.

60. PAN Card is essential for tax payer and it should not be used as ID proof.

61. From FY 2014-15 depreciation is to be calculated as per New Companies Act.

62. Domestic transfer pricing is applicable on transaction exceeding an amount of Rs 20 Crores

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A to Z of current Income Tax Provisions at a glance

Suresh KP


  1. hi bro,
    I’m working in singapore. I have RESIDENCE saving a/c,trading and demat a/c in icicidirect.com. I remit money from singapore to my icici residence s/b a/c, and invest in shares and mutual funds around 5 to 6 lakhs per year. now my doubt is: is it illegel to do this? because I’m an NRI. should I declare that I’m an NRI and covert my residence a/c to NRI a/c? I’m affraid of any llegel actions from IT dept. so pls advice.

    1. Mani, It is not correct to deposit amount in your SB A/c. Instead, open NRO account and link it with your ICICI direct.com. You can do trading activities and you can even repatriate money upto USD 1 million back if required. Contact ICICI Direct and open appropriate NRO a/c.

  2. I guess Surcharge is applicable @ 10% only if the income exceeds 1 crore. Surcharge @12% from next financial year i.e., FY 2015-16

  3. Dear Suresh,
    Please clarify
    1.Investment in NPS is eligible for tax exemption upto Rs 50000 under 80CCD OVER AND ABOVE Rs 150000 ….isn’t it???
    2.Parent’s Mediclaim premiums exempted upto Rs 30,000 instead of Rs 20,000 ???

  4. Hi suresh,

    Nice. but basic tax exem for individual is 2 lakhs or 2.5 lakhs? also services tax increased to 14% ?

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