CA's Referencer

Income Tax Rates - AY 2025-26 and 2024-25

1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person

Individuals
(Other than resident senior and super senior citizen)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2025-26	Assessment Year 2024-25
Up to Rs. 2,50,000	-	-
Rs. 2,50,000 to Rs. 5,00,000	5%	5%
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%
Resident Senior Citizen
(who is 60 years or more but less than 80 years at any time during the previous year)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2025-26	Assessment Year 2024-25
Up to Rs. 3,00,000	-	-
Rs. 3,00,000 to Rs. 5,00,000	5%	5%
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%
Resident Super Senior Citizen
(who is 80 years or more at any time during the previous year)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2025-26	Assessment Year 2024-25
Up to Rs. 5,00,000	-	-
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%
Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)
Net Income Range	Rate of Income-tax
Net Income Range	Assessment Year 2025-26	Assessment Year 2024-25
Up to Rs. 2,50,000	-	-
Rs. 2,50,000 to Rs. 5,00,000	5%	5%
Rs. 5,00,000 to Rs. 10,00,000	20%	20%
Above Rs. 10,00,000	30%	30%

Add:

a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Rate of Surcharge
*Assessment Year 2025-26*				*Assessment Year 2024-25*
Range of Income				Range of Income
Rs. 50 Lakhs to Rs. 1 Crore	Rs. 1 Crore to Rs. 2 Crores	Rs. 2 Crores to Rs. 5 Crores	above Rs. 5 crore	Rs. 50 Lakhs to Rs. 1 Crore	Rs. 1 Crore to Rs. 2 Crores	Rs. 2 Crores to Rs. 5 Crores	above Rs. 5 crore
10%	15%	25%	37%	10%	15%	25%	37%

Note:

(1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, on dividend income or income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

(2) The surcharge rate for AOP with all members as a company, shall be capped at 15%.

(3) The surcharge rate is nil if the total income of a ‘specified fund’ as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

Marginal relief is available from surcharge in following manner-

i. in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

ii. in case where net income exceeds Rs. 1 crore but doesn't exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

iii. in case where net income exceeds Rs. 2 crores but doesn't exceed Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores.

iv. in case where net income exceeds Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crores by more than the amount of income that exceeds Rs. 5 crores.

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

Notes:

(1) The Health and Education Cess is nil if the total income of a 'specified fund' as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

(2) A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

(3) Further, a maximum rebate of Rs. 25,000 is allowed under section 87A from the amount of income tax on total income, which is chargeable to tax under section 115BAC(1A). However, this rebate is allowed if the total income of assessee chargeable to tax under section 115BAC(1A) is up to Rs. 7,00,000.

Alternate Minimum Tax (AMT)

An individual is liable to pay Alternate Minimum Tax where tax payable by him, on his total income computed as per normal provisions of the Act, is less than 18.5% of 'adjusted total income'. In such a case the 'adjusted total income' is taken as income of such individual and he shall be liable to pay tax at the rate of 18.5% of such 'adjusted total income'.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of an assessee other than a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

1.1. Special tax Rate for Individual and HUFs

The new tax regime is the default tax regime for the Individual or HUF. Further, the benefit of new tax regime has also extended to Association of Persons (AOP)/Body of Individuals (BOI) and Artificial Juridical Person (AJP). If one to opt-out from default new tax regime, he has to exercise the option under Section 115BAC(6).

The tax rates under the new tax regime are as under:

For Assessment Year 2024-25:

*Net Income Range*	*Tax rate*
Upto Rs. 3,00,000	Nil
From Rs. 3,00,001 to Rs. 6,00,000	5%
From Rs. 6,00,001 to Rs.9,00,000	10%
From Rs. 9,00,001 to Rs. 12,00,000	15%
From Rs. 12,00,001 to Rs. 15,00,000	20%
Above Rs. 15,00,000	30%

For Assessment Year 2025-26:

Net Income Range	Tax rate
Upto Rs. 3,00,000	Nil
From Rs. 3,00,001 to Rs. 7,00,000	5%
From Rs. 7,00,001 to Rs. 10,00,000	10%
From Rs. 10,00,001 to Rs. 12,00,000	15%
From Rs. 12,00,001 to Rs. 15,00,000	20%
Above Rs. 15,00,000	30%

Add:

a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Range of Income
Rs. 50 Lakhs to Rs. 1 Crore	Rs. 1 Crore to Rs. 2 Crores	Rs. 2 crores to Rs. 5 crores	Exceeding Rs. 5 Crores
10%	15%	25%	37%

Note: The enhanced surcharge of 25% or 37% is not levied, on income by way of dividend or from income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. Also, the surcharge rate for AOP with all members as a company, shall be capped at 15%.

However, enhanced surcharge rate of 37% is not applicable for assessees opting for tax regime under section 115BAC.

Further, the surcharge rate is nil if the total income of a 'specified fund' as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) .

However, marginal relief is available from surcharge in following manner-

iii. in case where net income exceeds Rs. 2 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores.

iv. in case where net income exceeds Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crores by more than the amount of income that exceeds Rs. 5 crores.

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge. However, The Health and Education Cess is nil if the total income of a 'specified fund' as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

Notes:

(a) A maximum rebate of Rs. 25,000 is allowed under section 87A, if the total income of a resident individual, who is opting for the new tax scheme under Section 115BAC(1A), is up to Rs. 7,00,000.

(b) Further, if the total income of the resident individual chargeable to tax section 115BAC(1A) exceeds Rs. 7,00,000 and the tax payable on such income exceeds the difference between the total income and Rs. 7,00,000, he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount of income by which it exceeds Rs. 7,00,000

2. Partnership Firm

A partnership firm (including LLP) is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge

Alternate Minimum Tax (AMT)

A partnership firm is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of 'adjusted total income'. In such a case the 'adjusted total income' is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such 'adjusted total income'.

3. Local Authority

A local authority is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Alternate Minimum Tax (AMT)

A Local Authority is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of 'adjusted total income'. In such a case the 'adjusted total income' is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such 'adjusted total income'.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

4. Domestic Company

Income-tax rates applicable in case of domestic companies for assessment years 2025-26 and 2024-25 are as follows:

Domestic Company
Domestic Company	*Assessment Year 2025-26*	*Assessment Year 2024-25*
♦ Where its total turnover or gross receipt during the previous year 2021-22 does not exceed Rs. 400 crore	NA	25%
♦ Where its total turnover or gross receipt during the previous year 2022-23 does not exceed Rs. 400 crore	25%	NA
♦ Any other domestic company	30%	30%

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

(ii) Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Minimum Alternate Tax (MAT)

A domestic company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of 'book profit'. In such a case the 'book profit' is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such 'book profit'.

However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

4.1. Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies are as follows:

Domestic Company
♦ Where it opted for section 115BA	25%
♦ Where it opted for Section 115BAA	22%
♦ Where it opted for Section 115BAB	15%

Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.

5. Foreign Company

Assessment Year 2024-25

Nature of Income	Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government	50%
Any other income	40%

Assessment Year 2025-26

Nature of Income	Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government	50%
Any other income	35%

Add:

(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Minimum Alternate Tax (MAT)

A foreign company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of 'book profit'. In such a case the 'book profit' is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such 'book profit'.

However, the provisions of MAT do not apply in case of foreign companies if it does not have permanent establishment (PE) in India or opts for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB.

6. Co-operative Society

Assessment Years 2024-25 and 2025-26

Taxable income	Tax Rate
Up to Rs. 10,000	10%
Rs. 10,000 to Rs. 20,000	20%
Above Rs. 20,000	30%

Add:

(a) (a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Note:

(a) A co-op. society is liable to pay Alternate Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of 'adjusted total income'. In such a case the 'adjusted total income' is taken as the income of co-op. society and it shall be liable to pay tax at the rate of 15% of such 'adjusted total income'.

(b) If the assessee is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the rate of AMT will be 9%.

6.1. Alternative Tax regime for Co-operative societies

Income-tax Act allows a co-operative society to choose from the following alternative taxation regime subject to fulfilment of prescribed conditions:

Section

Conditions

Tax rate

Section 115BAE

• The co-operative society is set up and registered on or after 01-04-2023;

• It is engaged in manufacture or production of any article or thing;

• It commences manufacturing on or before 31-03-2024 ; and

• It does not claim specified exemption, incentive or deduction.

15% (Income from manufacturing activities)

Section 115BAD

If co-operative society does not claim specified exemption, incentive or deduction

22%

Add:

(a) Surcharge: The surcharge is levied at a rate of 10% on the amount of income-tax irrespective of the total income of such co-operative society.

(b) Health & Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Note:

(a) If a co-operative society has exercised the option of Section 115BAD or Section 115BAE, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.

[As amended by Finance (No. 2) Act, 2024]

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Income Tax Penalities & Prosecution

Disclaimer:
The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.
Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.

Penalties

Offences & Prosecution

PENALTIES

[AY 2025-26]

Section	Nature of default	Penalty leviable
(1)	(2)	(3)
140A(3)	Failure to pay wholly or partly—	Such amount as Assessing Officer may impose but not exceeding tax in arrears
	(a) self-assessment tax, or
	(b) interest and fee, or
	(c) both
	under section 140A(1)
158BFA(2)	Determination of undisclosed income of block period	Minimum : 100 per cent of tax leviable in respect of undisclosed income
		Maximum : 300 per cent of tax leviable in respect of undisclosed income.
221(1)	Default in making payment of tax	Such amount as Assessing Officer may impose but not exceeding amount of tax in arrears
234E	Failure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3)	Rs. 200 for every day during which failure continues but not exceeding tax deductible/collectible
234F	Default in furnishing return of income within time prescribed in section 139(1)	Rs. 5,000 if return is furnished after due date specified under section 139(1). However if the total income of the person does not exceed Rs. 5 lakhs then Rs. 1,000 shall be the late filing fees.
234G	Fee for default in submission of statement/certificate prescribed under section 35/ Section 80G	Rs. 200 per day
234H	Fee for default in intimating the Aadhaar Number	a) Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and b) Rs. 1,000, in all other cases.
270A(1)	Under-reporting and misreporting of income	A sum equal to 50% of the amount of tax payable on under-reported income. However, if under-reported income is in consequence of any misreporting thereof by any person, the penalty shall be equal to 200% of the amount of tax payable on under-reported income
271A	Failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA	Rs. 25,000
271AA(1)	(1) Failure to keep and maintain information and documents required by section 92D(1) or 92D(2)	2% of value of each international transaction/or specified domestic transaction entered into
	(2) Failure to report such transaction
	(3) Maintaining or furnishing incorrect information or document
271AA(2)	Failure to furnish information and document as required under Section 92D(4)	Rs. 5,00,000/-
271AAA	Where search has been initiated before 1-7-2012 and undisclosed income found	10% of undisclosed income
271AAB(1)	Where search has been initiated on or after 1-7-2012 but before 15-12-2016 and undisclosed income found	(a) 10% of undisclosed income of the specified previous year if assessee admits the undisclosed income; substantiates the manner in which it was derived; and on or before the specified date pays the tax, together with interest thereon and furnishes the return of income for the specified previous year declaring such undisclosed income
		(b) 20% of undisclosed income of the specified previous year if assessee does not admit the undisclosed income, and on or before the specified date declare such income in the return of income furnished for the specified previous year and pays the tax, together with interest thereon;
		(c) 60% of undisclosed income of the specified previous year if it is not covered by (a) or (b) above
271AAB(1A)	Where search has been initiated on or after 15-12-2016 and undisclosed income found	(a) 30% of undisclosed income of the specified previous year if assessee admits the undisclosed income; substantiates the manner in which it was derived; and on or before the specified date pays the tax, together with interest thereon and furnishes the return of income for the specified previous year declaring such undisclosed income (b) 60% of undisclosed income of the specified previous year in any other case.
271AAC	Income determined by Assessing Officer or the Commissioner (Appeals) includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D for any previous year. [if such income is not included by assessee in his return or tax in accordance with section 115BBE has not been paid]	10% of tax payable under section 115BBE.
271AAD	Penalty, if during any proceedings under the Act, it is found that in the books of accounts maintained by assessee, there is: a) A false entry; or b) Any entry relevant for computation of total income of such person has been omitted to evade tax liability.	100% of such false entries or omitted entry.
271AAE	Penalty for violation of the provisions of 21st proviso to section 10(23C) or section 13(1)(c) pertaining to passing of unreasonable benefits to trustees or specified person	(a) For the first violation: to the extent of income applied by the institution for the benefit of any interested party referred to in section 13(3); (b) For any violation in subsequent years: twice the amount of such income so applied (“double penalty”).
271B	Failure to get accounts audited or furnish a report of audit as required under section 44AB	One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, which-ever is less
271BA	Failure to furnish a report from an accountant as required by section 92E	Rs. 1,00,000
271BB	Failure to subscribe any amount to units issued under scheme referred to in section 88A(1)	20 per cent of such amount
271C	Failure to deduct tax at source, wholly or partly, under sections 192 to 196D (Chapter XVII-B) or failure to pay wholly or partly tax u/s 115-O(2) or proviso to section 194B, or failure to pay or ensure payment of tax as required by 115-O(2), first proviso to section 194R(1), proviso to section 194S(1) or section 194BA(2).	Amount equal to tax not deducted or paid
271CA	Failure to collect tax at source as required under Chapter XVII-BB	Amount equal to tax not collected
271D	Taking or accepting any loan or deposit or specified sum in contravention of the provisions of Section 269SS. "Specified sum" means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.	Amount equal to loan or deposit or specified sum so taken or accepted
271DA	Receiving an amount of Rs. 2 lakh or more from a person in a day [section 269ST]	Amount equal to such receipt
271DB	Failure to provide facility for accepting payment through prescribed electronic modes of payment as referred to in section 269SU	Rs. 5,000 rupees for every day of default
271E	Repayment of any loan or deposit or specified advance otherwise than in accordance with provision of Section 269T. "Specified advance" means any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not transfer takes place.	Amount equal to loan or deposit or specified advance so repaid
271FA¹	Failure to furnish an annual information return as required under section 285BA(1)²	Rs. 500 per day of default
	Failure to furnish annual information return within the period specified in notice u/s 285BA(5)	Rs. 1,000 per day of default
271FAA	Failure to furnish a statement under section 285BA or failure to furnish a correction statement within the specified period or failure to comply with the due diligence requirement	Rs. 50,000
	Furnishing of inaccurate information by reporting financial institution and such inaccuracy is due to false or inaccurate information submitted by the holder of reportable accounts	Rs, 5,000 for every inaccurate reportable account
271FAB	Section 9A provides that fund management activity carried out by an eligible offshore investment fund through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India (subject to certain conditions). The provision requires that eligible investment fund shall furnish within 90 days from the end of the financial year a statement, in respect of its activities in a financial year, in the prescribed form containing information relating to fulfilment of specified conditions and such other information or documents as may be prescribed. Penalty to be levied if investment fund failed to comply with the requirement.	Rs. 5,00,000
271G³	Failure to furnish any information or document as required by section 92D(3)	2% of the value of the international transaction/specified domestic transaction for each failure
271GA	Section 285A provides for reporting by an Indian concern if following two conditions are satisfied: a) Shares or interest in a foreign company or entity derive substantial value, directly or indirectly, from assets located in India; and b) Such foreign company or entity holds such assets in India through or in such Indian concern. In this case, the Indian entity shall furnish the prescribed information for the purpose of determination of any income accruing or arising in India under Section 9(1)(i). In case of any failure, the Indian concern shall be liable to pay penalty.	Penalty shall be: a) a sum equal to 2% of value of transaction in respect of which such failure has taken place, if such transaction had effect of, directly or indirectly, transferring right of management or control in relation to the Indian concern; b) a sum of Rs. 5,00,00 in any other case.
271GB(1)	Failure to furnish report under section 286(2)	Rs. 5,000 per day upto 30 days and Rs. 15,000 per day beyond 30 days
271GB(2)	Failure to produce the information and documents within the period allowed under section 271GB(6)	Rs. 5,000 for every day during which the failure continues.
271GB(3)	Failure to furnish report or failure to produce information/documents under section 286 even after serving order under section 271GB(1) or 271GB(2)	Rs. 50,000 for every day for which such failure continues beginning from the date of serving such order.
271GB(4)	Failure to inform about inaccuracy in report furnish under section 286(2) Or furnishing of inaccurate information or document in response to notice issued under section 286(6).	Rs. 5,00,000
271GC	Failure to submit statement under section 285 by a non-resident having liaison office in India (applicable with effect from April 1, 2025)	Rs. 1,000 per day of failure, up to 3 months; or Rs. 1,00,000 in any other case
271H⁴	Failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement	W.e.f. 1-10-2014 Assessing Officer may direct payment of penalty. Penalty shall not be less than Rs. 10,000 but may extend to Rs. 1,00,000
271K	Penalty of default in submission of statement/certificate prescribed under section 35/Section 80G	Rs. 10,000 to Rs. 1 lakh
271-I	As per section 195(6) of the Act, any person responsible for paying to a non-resident or to a foreign company, any sum (whether or not chargeable to tax), shall furnish the information relating to such payment in Form 15CA and 15CB. Penalty shall be levied in case of any failure.	Rs. 1,00,000
271J	Furnished incorrect information in any report or certificate by an accountant or a merchant banker or a registered valuer	Rs. 10,000 for each incorrect report or certificate
272A(1)	Refusal or failure to :	Rs. 10,000 for each failure/default
	(a) answer questions
	(b) sign statement
	(c) attend to give evidence or produce books of account, etc., in compliance with summons under section 131(1)
	(d) comply with notice u/s 142(1), 143(2) or failure to comply with direction issued u/s 142(2A).
272A(2)	Failure to :
	(a) furnish requisite information in respect of securities as required under section 94(6) ;	Rs. 500 for every day during which the failure continues. (In respect of penalty for failure, in relation to a declaration mentioned in section 197A, a certificate as required by section 203 and returns u/ss 206 and 206C and statements under Section 200(2A) or section 200(3) or proviso to section 206C(3) or section 206C(3A), penalty shall not exceed amount of tax deductible or collectible)
	(b) give notice of discontinuance of business or profession as required under section 176(3) ;
	(c) furnish in due time returns, statements or certificates, deliver de-claration, allow inspection, etc., under sections 133, 134, 139(4A), 139(4C), 192(2C), 197A, 203, 206, 206C, 206C(1A) and 285B;
	(d) deduct and pay tax under section 226(2)
	(e) file a copy of the prescribed statement within the time specified in section 200(3) or the proviso to section 206C(3) (up to 1-7-2012)
	(f) file the prescribed statement within the time specified in section 206A(1)
	(g) Failure to deliver or cause to be delivered a statement under Section 200(2A) or Section 206C(3A) within prescribed time. With effect from June 1, 2015, it is mandatory for an office of the Government, paying TDS or TCS, as the case may be, without production of a challan, to deliver a statement in the prescribed form and manner to the prescribed authority.
272AA(1)	Failure to comply with section 133B	Not exceeding Rs. 1,000
272B	Failure to comply with provisions relating to PAN or Aadhaar as referred to in section 139A/139A(5)(c)/(5A)/(5C)	Rs. 10,000 for each default
272BB(1)	Failure to comply with section 203A	Rs. 10,000 for each failure/default
272BB(1A)	Quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2)	Rs. 10,000

Note : No penalty is imposable for any failure under sections 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C, 271CA, 271D, 271E, 271F, 271FA, 271FAB, 271FB, 271G, 271GA, 271GB, 271H, 271-I, 272A(1)(c) or (d), 272A(2), 272AA(1), 272B, 272BB(1), 272BB(1A), 272BBB(1), 273(1)(b), 273(2)(b) and 273(2)(c) if the person or assessee proves that there was reasonable cause for such failure (section 273B).

Section 273AA provides that a person may make application to the Principal Commissioner/Commissioner for granting immunity from penalty, if (a) he has made an application for settlement under section 245C and the proceedings for settlement have abated; and (b) penalty proceeding have been initiated under this Act. The application shall not be made after the imposition of penalty after abatement.

OFFENCES AND PROSECUTIONS

[AY 2025-26]

Section	Nature of default	Punishment (rigorous imprisonment)	Fine
(1)	(2)	(3)	(4)
275A	Contravention of order made under section 132(1) (Second Proviso) or 132(3) in case of search and seizure	Up to 2 years	No limit
275B	Failure to afford necessary facility to authorised officer to inspect books of account or other documents as required under section 132(1)(iib)	Up to 2 years	No limit
276	Removal, concealment, transfer or delivery of property to thwart tax recovery	Up to 2 years	No limit
276A	Failure to comply with provisions of section 178(1) and (3) re : company in liquidation	6 months to 2 years	—
276B	Failure to pay to credit of Central Government (i) tax deducted at source under Chapter XVII-B (non-cognizable offence under section 279A), or proviso to section 194B, or failure to pay or ensure payment of tax as required by section 115O(2), first proviso to section 194R(1), proviso to section 194S(1) or section 194BA(2). Note: The provision of this section shall not apply if payment in respect to TDS has been made to the credit of the Central Government at any time on or before the time prescribed for filing the TDS statement in respect to such payment. (applicable w.e.f 01-10-2024)	3 months to 7 years	No limit
276BB	Failure to pay the tax collected under the provisions of section 206C	3 months to 7 years	No limit
276C(1)	Wilful attempt to evade tax, penalty or interest or under-reporting of Income (non-cognizable offence under section 279A)—
	(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)	6 months to 7 years	No limit
	(b) in other cases	3 months to 3 years (2 years w.e.f. 1-7-2012)	No limit
276C(2)	Wilful attempt to evade payment of any tax, penalty or interest (non-cognizable offence under section 279A)	3 months to 3 years (2 years w.e.f. 1-7-2012)	No limit
276CC	Wilful failure to furnish returns of fringe benefits under section 115WD/115WH or return of income under section 139(1) or under section 139(8A) or in response to notice under section 142(1)(i) or section 148 or section 153A (non-cognizable offence under section 279A)—
	(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)	6 months to 7 years	No limit
	(b) in other cases Note : *** A person shall not be liable to be prosecuted under this section if he furnishes the return before expiry of assessment year or the tax payable by such person, not being a company, as reduced by the advance tax self-assessment tax paid before expiry of the assessment year, TDS and TCS, does not exceed Rs. 10,000.	3 months to 3 years (2 years w.e.f. 1-7-2012)	No limit
276CCC	Wilful failure to furnish in due time return of total income required to be furnished by notice u/s 158BC(1)(a)	3 months to 3 years	No limit
276D⁶	Wilful failure to produce accounts and documents under section 142(1) or to comply with a notice under section 142(2A)	Up to 1 year	⁷Rs. 4 to Rs. 10 for every day of default
277	False statement in verification or delivery of false account, etc. (non-cognizable offence under section 279A)
	(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)	6 months to 7 years	No limit
	(b) in other cases	3 months to 3 years (2 years w.e.f. 1-7-2012)	No limit
277A	Falsification of books of account or document, etc., to enable any other person to evade any tax, penalty or interest chargeable/leviable under the Act	3 months to 3 years (2 years w.e.f. 1-7-2012)	No limit
278	Abetment of false return, account, statement or declaration relating to any income or fringe benefits chargeable to tax (non-cognizable offence under section 279A)
	(a) where tax, penalty or interest sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)	6 months to 7 years	No limit
	(b) in other cases	3 months to 3 years (2 years w.e.f. 1-7-2012)	No limit
278A	Second and subsequent offences under sections 276B, 276BB, 276C(1), 276CC, 276DD, 276E, 277 or 278	6 months to 7 years	No limit
280(1)	Disclosure of particulars by public servants in contravention of section 138(2) [Prosecution to be instituted with previous sanction of Central Government under section 280(2)]	Up to 6 months (simple/rigorous)	No limit

Notes :

1. No person is punishable for any failure under section 276A, 276AB or 276B if he proves that there was reasonable cause for such failure (vide section 278AA).

2. (a) Prosecution for offences under section 275A, section 275B, section 276, section 276A, section 276B, section 276BB, section 276C, section 276CC, section 276D, section 277, section 277A and section 278 to be instituted with previous sanction of Principal Director General/Principal Chief Commissioner/Principal Commissioner/Director General/Chief Commissioner/Commissioner, except where prosecution is at the instance of the Commissioner (Appeals) or the appropriate authority (vide section 279).

(b) The offences under Chapter XXII can be compounded (either before or after the institution of proceedings) by Principal Director General/Director General or Principal Chief Commissioner/Chief Commissioner.

3. Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, such company shall be punished with fine and every person, referred to in sub-section (1) of section 278B, or the director, manager, secretary or other officer of the company referred to in sub-section (2) of section 278B shall be liable to be proceeded against and punished in accordance with the provisions of this Act.

4. With effect from 1-4-2008 under section 278AB a person may apply to the Principal Commissioner/Commissioner for granting immunity from prosecution, if he has applied for settlement under section 245C and the proceedings have abated under section 245HA. The application shall not be made after institution of prosecution proceedings after abatement.

1. With effect from assessment year 2015-16 "annual information return" has been changed to "statement of financial transaction or reportable account" and word "return" has been changed to "statement".

2. With effect from assessment year 2015-16 a new section 271FAA has been inserted to provide for a penalty of Rs. 50,000 for furnishing inaccurate statement of financial transaction or reportable account in certain cases.

3. With effect from 1-10-2014 TPO can also levy penalty.

4. Section 271H as amended with effect from 1-10-2014 provides that penalty shall be levied by Assessing Officer.

5. Non-operative with effect from 1-7-2002.

6. With effect from October 1, 2014, if a person wilfully fails to produce accounts and documents as stated or wilfully fails to comply with the direction given, he shall be punishable with rigorous imprisonment for a term which may extend to one year and with fine (quantum of fine has not been specified).

7. No limit w.e.f. 1-10-2014.

[As Amended by Finance (No. 2) Act, 2024]

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Income Tax Benefits Available to Small Businessmen
- For AY 2025-26

List of benefits available to Small Businessmen

[AY 2025-26]

S.N.	Particulars	Section	Benefits/Deductions allowed
A.	Presumptive Taxation Scheme
1.	Computation of income from eligible business on presumptive basis under Section 44AD (Subject to certain conditions).	44AD	• Presumptive income of eligible business shall be 8 % of gross receipt or total turnover (if turnover or gross receipts of eligible business does not exceed Rs. 2 crore). • Presumptive income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system or through such other electronic mode as may be prescribed. Note:If the amount of cash received during the previous year does not exceed 5% of the total turnover or gross receipt of such year then the threshold limit for total turnover shall be taken as Rs. 3 crore instead of Rs. 2 crore. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.
2.	Computation of income from profession on presumptive basis under Section 44ADA (Subject to certain conditions).	44ADA	Presumptive income of profession shall be 50% of gross receipt (if gross receipt of assessee does not exceed Rs. 50 lakh). Note: if the amount of cash received during the previous year does not exceed 5% of the total gross receipt of such year then the threshold limit for total gross receipt shall be taken as Rs. 75,00,000 instead of Rs. 50,00,000. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.
3.	Presumptive income from business of plying, hiring or leasing of goods carriage if assessee does not own more than 10 goods carriage.	44AE	For Heavy Goods Vehicle: Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by assessee For Other Goods Vehicle: Rs. 7,500 for every month or part of a month during which the goods carriage is owned by assessee Note: 'Heavy goods vehicle' means goods carriage vehicle the gross vehicle weight of which exceeds 12,000 kilograms.
B.	Deductions from business profits
1.	Rent, rates, taxes, repairs (excluding capital expenditure) and insurance for premises	30	Actual expenditure incurred excluding capital expenditure
2.	Repairs (excluding capital expenditure) and insurance of machinery, plant and furniture	31	Actual expenditure incurred excluding capital expenditure
3.	Depreciation shall be allowed in respect of following assets: i. Tangible Assets (buildings, machinery, plant or furniture); ii. Intangible Assets (know-how, patents, copyrights, trademarks, licenses, franchises, or any other business or commercial rights of similar nature not being goodwill of business or profession).	32(1)(i)	Depreciation shall be allowed, to taxpayers engaged in business of generation or generation and distribution of power, at prescribed percentage on actual cost of an asset However, if asset is acquired and put to use for less than 180 days during the previous year, the deduction shall be restricted to 50% of depreciation computed above. Note: Taxpayers engaged in the business of generation or generation and distribution of power shall have the option to claim depreciation either on basis of straight line basis method or written down value method on each block of asset.
4.	Depreciation shall be allowed in respect of following assets: i. Tangible Assets (buildings, machinery, plant or furniture); ii. Intangible Assets (know-how, patents, copyrights, trademarks, licenses, franchises, or any other business or commercial rights of similar nature not being goodwill of business or profession).	32(1)(ii)	Depreciation shall be allowed to all taxpayer (except as referred to above) at prescribed percentage on written down value of each block of asset (as per WDV method). However, if asset is acquired and put to use for less than 180 days during the previous year, the deduction shall be restricted to 50% of depreciation computed above.
5.	Additional depreciation shall be allowed to the following assessees in respect of new plant and machinery [other than ships, aircraft, office appliances, second hand plant or machinery, etc.]: a) manufacture or production of any article or thing; or b) generation, transmission or distribution of power (if taxpayer is not claiming depreciation on basis of straight line method)	32(1)(iia)	Additional depreciation to be allowed at 20 % of actual cost of new plant and machinery. However, if an asset is acquired and put to use for less than 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% would be allowed in the next year.
6.	Additional depreciation shall be allowed on new plant and machinery (other than ships, aircraft, vehicle, office appliances, second hand plant or machinery, etc.) shall be allowed subject to certain conditions. Such additional depreciation to be allowed to all taxpayers which set up an undertaking or enterprise for production or manufacture of any article or thing in any notified backward area in the state of Andhra Pradesh, Bihar, Telangana or West Bengal. Note: 1. Manufacturing unit should be set-up on or after April 1, 2015. 2. New plant and machinery should be acquired and installed on or after April 1, 2015 but before April 1, 2020.	Proviso to Section 32(1)(iia)	Additional depreciation to be allowed at 35 % of actual cost of new plant and machinery. However, if an asset is acquired and put to use for less than one 180 days during the previous year, 50% of additional depreciation shall be allowed in year of acquisition and balance 50% in next year.
7.	Investment allowance shall be allowed to a company engaged in business or manufacturing or production of any article or thing (Subject to certain conditions).	32AC	Investment allowance shall be allowed at 15% of actual cost of new asset acquired and installed.
8.	Investment allowance shall be allowed to all taxpayers who acquire new plant and machinery for purpose of setting-up manufacturing unit in notified backward areas in the State of Andhra Pradesh, Bihar, Telangana or West Bengal. Note: 1. New asset should be acquired and installed on or after April 1, 2015 but before April 1, 2020. 2. Manufacturing unit should be set-up on or after April 1, 2015. 3. Deduction shall be allowed under Section 32AD in addition to deduction under Section 32AC if assessee fulfils the specified conditions.	32AD	Investment allowance shall be allowed at 15% of actual cost of investment made in new plant and machinery (other than ships, aircraft, vehicle, office appliances, second hand plant or machinery, etc.)
9.	Insurance premium covering risk of damage or destruction of stocks/stores	36(1)(i)	Actual expenditure incurred
10.	Insurance premium covering life of cattle owned by a member of co-operative society engaged in supplying milk to federal milk co-operative society	36(1)(ia)	Actual expenditure incurred
11.	Medical insurance premium paid by any mode other than cash, to insure employee's health under (a) scheme framed by GIC of India and approved by Central Government; or (b) scheme framed by any other insurer and approved by IRDA	36(1)(ib)	Actual expenditure incurred
12.	Bonus or commission paid to employees which would not have been payable as profit or dividend if it had not been paid as bonus or commission	36(1)(ii)	Actual expenditure incurred
13.	Interest paid in respect of capital borrowed for the purposes of the business or profession.	36(1)(iii)	Actual amount of interest incurred. Note: If sum is borrowed for acquiring a capital asset, interest thereon pertaining to the period before asset is first put to use shall not be allowed as deduction.
14.	Employer's contributions to recognized provident fund and approved superannuation fund [subject to certain limits and conditions]	36(1)(iv)	Actual expenditure incurred
15.	Any sum paid by assessee-employer by way of contribution towards a pension scheme, as referred to in section 80CCD, on account of an employee to the extent it does not exceed 10 per cent of the employee's salary in the previous year.	36(1)(iva)	Actual expenditure incurred subject to the limit of 14 per cent of the employee's salary* *Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
16.	Contributions to approved gratuity fund (Subject to certain limits and conditions)	36(1)(v)	Actual expenditure incurred
17.	Employer's contribution to wards approved gratuity fund created exclusively for the benefit of employees under an irrevocable trust shall be allowed as deduction (subject to certain conditions)	36(1)(va)	Actual expenditure incurred not exceeding 8.33% of salary of each employee
18.	Allowance in respect of animals which have died or become permanently useless (Subject to certain conditions)	36(1)(vi)	Actual cost of acquisition of such animals less realization on sale of carcasses of animals
19.	Bad debts which have been written off as irrecoverable in books of accounts. (Subject to certain conditions) Note: W.e.f. assessment year 2016-17, bad-debts shall be allowed as deduction even if they are not written-off from books of accounts. Such deduction shall be allowed if amount of debt or part thereof has been taken into account in computing income on the basis of Income Computation and Disclosure Standards notified under section 145(2) without recording the same in the accounts.	36(1)(vii)	Actual bad debts which have been written off from books of accounts
20.	Securities Transaction Tax paid	36(1)(xv)	Actual expenditure incurred if corresponding income is included as income under the head profits and gains of business or profession
21.	Amount equal to commodities transaction tax paid by an assessee in respect of taxable commodities transactions entered into in the course of his business during the previous year is allowed as deduction	36(1)(xvi)	Actual expenditure incurred if corresponding income is included as income under the head profits and gains of business or profession
22.	Amount of expenditure incurred by a co-operative society (engaged in business of manufacture of sugar) for purchase of sugarcane.	36(1)(xvii)	Deduction would be allowed the extent of lower of following: a) Actual purchase price of sugarcane, or b) Price of sugarcane fixed or approved by the Government
23.	Marked to market loss or other expected loss as computed in accordance with the ICDS notified under section 145(2)	36(1)(xviii)	Marked to Market loss or Expected Loss
24.	Any other expenditure [not being personal or capital expenditure and expenditure mentioned in sections 30 to 36] laid out wholly and exclusively for purposes of business or profession	37(1)	Actual expenditure incurred
25.	Interest, salary, bonus, commission or remuneration paid to partners (subject to certain conditions and limits)	40(b)	a) Interest, in accordance with terms of partnership deed but not exceeding simple interest at 12 per annum b) Remuneration to working partners: ■ If book profit is negative: Rs. 3,00,000 ■ If book profit is positive: (i) Rs. 3,00,000 or 90% of book profit, whichever is more, on first Rs. 6 lakhs of book profit (ii) 60% of balance book profit
C.	Maintenance of books of accounts and audit thereof
1.	Compulsory maintenance of prescribed books of account – Specified Profession (Subject to certain conditions and circumstances)	44AA	Persons carrying on specified profession
2.	Compulsory maintenance of books of account – Other business or profession (Subject to certain conditions and circumstances)	44AA	1) If the total sales, turnover or gross receipts exceeds Rs 10,00,000 in any one of the three years immediately preceding the previous year; or 2) If the income from business or profession exceeds Rs 1,20,000 in any one of the three years immediately preceding the previous year. Note: Individuals or HUFs shall be required to maintain books of account only when either their gross turnover/gross receipts exceed Rs 2,50,0000 or their income from business or profession exceed Rs 2,50,000.
3.	Compulsory Audit of books of accounts (Subject to certain conditions and circumstances)	44AB	1) If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business; or 2) If gross receipts exceeds Rs. 50 Lakhs in any previous year, in case of profession. Note: a) This section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD/44ADA. b) Threshold limit of Rs. 1 crore shall be increased to Rs. 10 crore in case where the cash receipt and payment made during the year does not exceed 5% of total receipt or payment the business
D.	Exemptions and Deductions
1.	Amount received by individual member from HUF. [Subject to the provisions of Section 64(2)]	10(2)	Entire amount is exempt from tax
2.	Share of profit received by partners from a partnership firm.	10(2A)	Entire amount is exempt from tax
3.	Any sum of money or immovable property or movable property received on or after April 1, 2017 without consideration or for inadequate consideration* from a relative or member of HUF (subject to certain conditions and circumstances). Note: Any sum of money or immovable property or movable property received on or after April 1, 2017 without consideration or for inadequate consideration* from a relative or member of HUF (subject to certain conditions and circumstances). Note: 1. In case of immovable property, 'inadequate consideration' shall mean difference between stamp duty value and actual consideration, if it exceeds Rs. 50,000 or amount equal to 10% of consideration, whichever is higher. 2. Any sum of money received by an individual, from any person, in respect of any expenditure actually incurred by him on his medical treatment or treatment of any member of his family in respect of any illness related to COVID-19, shall not be considered as income of such person. (subject to certain conditions) 3. Any sum of money received by family member of a person who died due to COVID-19, the money so received shall not be considered as income of the family member where such money is received from the employer of deceased person. Where the money is received from any other person or persons, the exemption amount shall be limited to Rs. 10 lakh in aggregate. (subject to certain conditions)	56(2)(x)	The whole amount received from specified relatives or in specified circumstances shall not be included in taxable income.
4.	Rent paid for furnished/unfurnished residential accommodation (Subject to certain conditions)	80GG	Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income*; b) 25% of the Total Income; or c) Rs. 5,000 per month. Total Income = Gross total income minus long term capital gains, short term capital gains under section 111A, deductions under sections 80C to 80U (other than 80GG) and income under section 115A
5.	Deduction in respect of employment of new employees.	80JJAA	Deduction shall be allowed at 30% of additional employee cost paid for first three Assessment years. Note: "Additional employee cost" means total emoluments paid or payable to additional employees employed during the previous year. Provided that in case of existing business, the additional employee cost shall be nil if – (a) There is no increase in the number of employees from the total number of employees employed as on the last day of the preceding year ; (b) Emoluments are paid otherwise than by an account payee cheque or account payee bank draft or by use of electronic clearing system through bank account or through such electronic mode as may be prescribed. (Subject to other conditions)
6.	Deduction in respect of eligible start-up (subject to certain conditions) Note: 1. Eligible start-up means a company or a limited liability partnership, incorporated on or after 1/4/2016 but before 1/4/2025, whose total turnover doesn't exceed Rs. 100 crores in the previous year in which deduction is claimed by that start-up and it holds a certificate from Inter-Ministerial Board of Certification. 2. The deduction is available for any 3 consecutive assessment years out of 10 years beginning from the year in which the eligible start-up is incorporated.	80- IAC	Deduction of 100% of the profit and gains derived by an eligible start-up from a business involving innovation, development, deployment or commercialization of new products, process or services driven by technology or intellectual property rights.
7.	Deductions in respect of profits and gains arising from housing projects	80-IBA	Deduction of 100% of the profits and gains derived by assessee from the business of developing and building affordable housing projects.
E.	Tax Deducted at Source and Advance Tax
1.	Lower rate of TDS under Section 194C in case of payments to a contractor or sub-contractor (Subject to certain conditions) Tax is required to be deducted only if sum paid exceeds Rs. 30,000 or aggregate of sum paid during the financial year exceeds 75,000 (Rs. 100,000 from 01.06.2016).	194C	Deduction of tax at source at 1% if recipient is an Individual or HUF
2.	No TDS from sum paid or payable to contractor who is in the business of plying, hiring or leasing goods carriage and owns ten or less goods carriages at any time during the previous year	194C	No TDS if such contractor owns ten or less goods carriages and furnishes a dedication to that effect after alongwith PAN
3.	No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to an individual and HUF.	193	No TDS if interest during the financial year does not exceed Rs. 5,000
3A.	No TDS from interest on 8% Saving (Taxable) Bonds 2003, 7.75% Savings (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security paid to a resident persons	193	If amount paid or payable during the financial year does not exceed Rs. 10,000
3B.	No TDS from dividend paid by any mode other than cash to resident persons.	194	No TDS if amount paid or payable during the financial year does not exceed Rs. 5,000.
4.	No obligation to deduct tax at source under Section 194A, 194C, 194H, 194-I and 194J if an Individual or HUF carries on a business or profession and total sales, turnover or gross receipts from such business or profession does not exceed, Rs. 1 crore in case of business and Rs. 50 lakhs in case of profession, during the financial year immediately preceding the financial year in which sum is to be credited or paid.	-	Not liable to deduct tax at source
4A.	No TDS from payment to participants of e-commerce	194-O	No TDS if amount paid or payable during the financial year does not exceed Rs. 5 Lakhs
4B.	No obligation to deduct tax by an Individual* or HUF* responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section 194D) or brokerage or by way of fees for professional services. * Other than those who are required to deduct income-tax as per the provisions of section 194C, section 194H, or section 194J	194M	No tax shall be deducted from specified payments if the aggregate of sum paid or credited during the year doesn’t exceed Rs. 50 lakhs
4C.	No obligation to file return of income by a senior citizen (whose age is 75 years or more) if: a) His total income consists only income in the nature of pension and interest received or receivable from any account maintained with deductor (such bank); and a) Tax on such income is deducted by deductor on the basis of rates in force.	194P	No obligation to file return of income
4D.	No TDS if amount paid or payable to resident seller for purchase of goods during the Financial Year if aggregate value of goods doesn’t exceed Rs. 50 lakhs	194Q	No TDS from payment made to resident seller
4E.	No TDS if aggregate value of benefit/perquisite provided during the Financial Year doesn’t exceed Rs. 20,000	194R	No TDS in case any benefit or perquisite is provided to a resident
4F.	No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession	194S	No TDS from payment on transfer of Virtual Digital Asset
4G.	No TDS on payment made to partners of Firms	194T	If amount or aggregate of amount paid/ payable during the financial year does not exceed Rs. 20,000.
5.	No deduction of tax shall be made under Sections 194 and 194EE, if resident individual furnishes to the payer a written declaration in prescribed form that tax on his estimated total income of the previous year will be nil.	197A(1)	No tax shall be deducted from specified payments if the sum paid does not exceed the maximum amount which is not chargeable to tax
6.	No deduction of tax shall be made under sections 192A, 193, 194, 194A, 194D, 194DA, 194EE, 194-I and 194K if resident senior citizen furnishes to the payer a written declaration in prescribed form that tax on his estimated total income of the previous year will be nil.	197A(1C)	No tax shall be deducted from specified payments
7.	Exemption from payment of advance tax by a resident senior citizen or resident super senior citizen not having any income from business or profession (who is at least 60 Years of age at any time during the previous year)	207(2)	Not liable to pay advance tax
8.	No need to pay advance tax in installments by assessee who has opted for presumptive taxation scheme under Section 44AD or 44ADA	44AD/44ADA	Whole amount of advance tax can be paid in one installment on or before 15^th March of the financial year
9.	Liability for payment of advance tax	208	Taxpayer is liable to advance tax only if his advance tax liability is Rs. 10,000 or more
F.	Basic exemption limits
1.	Maximum amount of income which is not chargeable to Income-tax	Rs. 2,50,000	Individual/HUF taxpayer
1A.	Maximum amount of income which is not chargeable to Income-tax in case of person whose total income is chargeable to tax under section 115BAC	Rs. 3,00,000	Individual, HUF/ AOP/ BOI/ Artificial Juridical Person
2.	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year)	Rs. 3,00,000	Resident Senior Citizen
3.	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen (who is at least 80 Years of age at any time during the previous year)	Rs. 5,00,000	Resident Super Senior Citizen
4.	Rebate to resident individual whose total income does not exceed Rs. 5,00,000 [Section 87A]	Tax payable subject to maximum of rebate Rs. 12,500	Resident Individual
4A.	Rebate to resident individual whose total income chargeable to tax under section 115BAC(1A) does not exceed Rs. 7,00,000 [Section 87A]	Tax payable subject to maximum of rebate Rs. 25,000	Resident Individual
5.	HUF is assessed to tax as a separate entity	HUF is treated as a person distinct from Individual members or Karta.	HUF
6.	Concessional tax regime under section 115BAC	Option for payment of taxes at reduced rates (subject to certain conditions)	Individual, HUF/AOP/ BOI/Artificial Juridical Person
G.	Concessional tax rate for domestic company and co-operative society
1.	Concessional rate of tax for domestic company if – (i) Such company has been set-up and registered on or after March 1, 2016; and (ii) It is engaged in business of manufacturing or production of any article or thing (Subject to certain other conditions)	115BA	Income shall, at the option of such company, be computed at concessional tax rate of 25%.
2.	Concessional rate of tax for domestic company, if total turnover or gross receipt in the previous year 2022-23 does not exceed Rs. 400 Crores.	First Schedule of Finance Act, 2022	Rate of income tax shall be 25% of total income.
3.	Concessional rate of tax for domestic company if total income of the company is computed without providing for specified deductions or exemptions	115BAA	Rate of income tax shall be 22% of total income.
4.	Concessional rate of tax for domestic manufacturing company if: a) Such Co. incorporated on or after 01-10-2019; b) It should commence the manufacturing or production of an article or thing on or after 01-10-2019 but before 31-03-2024; c) It must be engaged in the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it; or generation of electricity; d) The total income of the company is computed without providing for specified deductions or exemptions (Subject to certain other conditions)	115BAB	Rate of income tax shall be 15% of total income.
5.	Concessional rate of tax for resident co-operative society if total income of the company is computed without providing for specified deductions or exemptions	115BAD	Rate of income tax shall be 22% of total income.
6.	Concessional rate of tax for resident co-operative societies engaged in the manufacturing or production of an article or thing if total income of the company is computed without providing for specified deductions or exemptions	115BAE	Rate of income tax shall be 15% of total income.

H. Exemption from e-filing of return of income

Form Assessment year 2019-20, every taxpayer has to file Income-tax return electronically except a super senior citizen (i.e., an Individual whose age is 80 years or above at any time during the previous year 2018-19) who furnish the return in ITR-1 or ITR-4

[As amended by Finance (No. 2) Act, 2024]

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Income Tax Benefits Available to Salaried Persons - For AY 2025-2026

[AY 2025-26]

S. N.	Section	Particulars	Benefits
A.	Allowances
1.	10(13A)	House Rent Allowance (Sec. 10(13A) & Rule 2A)	Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai, Calcutta, Delhi or Madras) c) Rent paid minus 10% of salary * Salary= Basic + DA (if part of retirement benefit) + Turnover based Commission Note: i. Fully Taxable, if HRA is received by an employee who is living in his own house or if he does not pay any rent ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more than Rs. 1,00,000 [Circular No. 08 /2013 dated 10th October, 2013].
2.	10(14)	Children Education Allowance	Up to Rs. 100 per month per child up to a maximum of 2 children is exempt
3.	10(14)	Hostel Expenditure Allowance	Up to Rs. 300 per month per child up to a maximum of 2 children is exempt
4.	10(14)	Transport Allowance granted to an employee to meet expenditure for the purpose of commuting between place of residence and place of duty	Rs. 3,200 per month granted to an employee, who is blind or deaf and dumb or orthopedically handicapped with disability of lower extremities
5.	Sec. 10(14)	Transport Allowance to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.	Amount of exemption shall be lower of following: a) 70% of such allowance; or b) Rs. 10,000 per month.
6.	10(14)	Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office	Exempt to the extent of expenditure incurred
7.	10(14)	Any Allowance granted to meet the cost of travel on tour or on transfer	Exempt to the extent of expenditure incurred
8.	10(14)	Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty	Exempt to the extent of expenditure incurred
9.	10(14)	Helper/Assistant Allowance	Exempt to the extent of expenditure incurred
10.	10(14)	Research Allowance granted for encouraging the academic research and other professional pursuits	Exempt to the extent of expenditure incurred
11.	10(14)	Uniform Allowance	Exempt to the extent of expenditure incurred
12.	10(7)	Foreign allowances or perquisites paid or allowed by Government to its employees (an Indian citizen) posted outside India	Fully Exempt
13.	-	Allowances to Judges of High Court/Supreme Court (Subject to certain conditions)	Fully Exempt.
14.	10(45)	Following allowances and perquisites given to serving Chairman/Member of UPSC is exempt from tax: a) Value of rent free official residence b) Value of conveyance facilities including transport allowance c) Sumptuary allowance d) Leave travel concession	Fully Exempt
15.	-	Allowances paid by the UNO to its employees	Fully Exempt
16.	10(45)	Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)	Exempt subject to maximum of Rs.14,000 per month for defraying services of an orderly and for secretarial assistant on contract basis. The value of residential telephone free of cost and the number of free calls to the extent of 1500 per month shall be exempt.
17.	Sec. 10(14)	Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 300 per month to Rs. 7,000 per month.
18.	Sec. 10(14)	Border area allowances, Remote Locality allowance or Disturbed Area allowance or Difficult Area Allowance (Subject to certain conditions and locations)	Amount exempt from tax varies from Rs. 200 per month to Rs. 1,300 per month.
19.	Sec. 10(14)	Tribal area allowance given in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Odisha	Rs. 200 per month
20.	Sec. 10(14)	Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Rs. 2,600 per month
21.	Sec. 10(14)	Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Rs. 1,000 per month
22.	Sec. 10(14)	Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Rs. 3,900 per month
23.	Sec. 10(14)	Underground Allowance is granted to employees working in uncongenial, unnatural climate in underground mines	Up to Rs. 800 per month
24.	Sec. 10(14)	High Altitude Allowance is granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)	a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet) b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)
25.	Sec. 10(14)	Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)	Up to Rs. 4,200 per month
26.	Sec. 10(14)	Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)	Up to Rs. 3,250 per month
B.	Perquisites
1.	17(2)(i)/(ii) read with Rule 3(1)	Rent free unfurnished accommodation provided to Central and State Government employees	License Fees determined in accordance with rules framed by Government for allotment of houses shall be deemed to be the taxable value of perquisites.
2.	17(2)(i)/(ii) read with Rule 3(1)	Unfurnished rent free accommodation provided to other employees	Taxable value of perquisites A. If House Property is owned by the employer: i. 10% of salary, if population of city where accommodation is provided exceeds 40 lakhs as per 2011 census ii. 7.5% of salary, if population of city where accommodation provided exceeds 15 lakhs but does not exceed 40 lakhs as per 2011 census iii. 5% of salary, if accommodation is provided in any other city B. If House Property is taken on lease or rent by the employer, the perquisite value shall be : i. Lease rent paid or payable by the employer or 10% of the salary, whichever is lower Salary includes: a) Basic Pay b) Dearness Allowance (only to the extent it forms part of retirement benefit salary) c) Bonus d) Commission e) All other allowances (only taxable portion) f) Any monetary payment which is chargeable to tax But does not include i. Value of any perquisite [under section 17(2)] ii. Employer’s contribution to PF iii. Benefits received at the time of retirement like gratuity, pension etc. C. If same accommodation is provided for more than one year, the perquisite value shall be lower of the following: (a) Perquisite value computed as per the above rules; or (b) First year's perquisite value as adjusted by the Cost Inflation Index (CII). Note:* 1) Rent free accommodation is not chargeable to tax if provided to an employee working at mining site or an on-shore oil exploration site, etc.,— (i) which is being of temporary nature (subject to conditions) (ii) which is located in remote area. 2) Rent free accommodation if provided to High Court or Supreme Court Judges, Union Ministers, Leader of Opposition in Parliament, an official in Parliament and Serving Chairman and members of UPSC is Tax Free Perquisites. 3) The value so determined shall be reduced by the amount of rent, if any, paid by the employee. 4) If employee is transferred and retain property at both the places, the taxable value of perquisites for initial period of 90 days shall be determined with reference to only one accommodation (at the option of the assessee). The other one will be tax free. However after 90 days, taxable value of perquisites shall be charged with reference to both the accommodations.
3.	17(2)(i)/(ii) read with Rule 3(1)	Rent free furnished accommodation	Taxable value of perquisites a) Find out taxable value of perquisite assuming accommodation to be provided to the employee is unfurnished b) Add: 10% of original cost of furniture and fixtures (if these are owned by the employer) or actual higher charges paid or payable (if these are taken on rent by the employer). Note: The value so determined shall be reduced by the amount of rent, if any, paid by the employee
4.	17(2)(i)/(ii) read with Rule 3(1)	A furnished accommodation in a Hotel	Taxable value of perquisites Value of perquisite shall be lower of following: a) Actual charges paid or payable by the employer to such hotel b) 24% of salary Note: Hotel accommodation will not be chargeable to tax if : a) It is provided for a total period not exceeding in aggregate 15 days in the financial year; and b) Such accommodation in hotel is provided on employee’s transfer from one place to another place.
5.	17(2)(iv)	Any sum paid by employer in respect of any obligation of an employee	Fully Taxable
5A.	17(2)(vii)	Contribution made to the account of the assessee by the employer–– (a) in a recognised provident fund; (b) in the scheme referred to in section 80CCD(1); and (c) in an approved superannuation fund	To the extent it exceeds Rs. 7,50,000
5B.	17(2)(iv)	Any annual accretion by way of interest, dividend or any other amount of similar nature during the previous year to the balance at the credit of the fund or scheme	To the extent it relates to the employer’s contribution which is included in total income
5C.	17(2)(viii) read with Rule 3(2)	Motor Car / Other Conveyance	Taxable value of perquisites (See Note 1 below)
6.	17(2)(viii) read with Rule 3(3)	Services of a domestic servant including sweeper, gardener, watchmen or personal attendant (Taxable in case of specified employee only [See Note 4])	Taxable value of perquisite shall be salary paid or payable by the employer for such services less any amount recovered from the employee.
7.	17(2)(viii) read with Rule 3(4)	Supply of gas, electricity or water for household purposes	Taxable value of perquisites: 1. Manufacturing cost per unit incurred by the employer., if provided from resources owned by the employer; 2. Amount paid by the employer, if purchased by the employer from outside agency Note: i. Any amount recovered from the employee shall be deducted from the taxable value of perquisite. ii. Taxable in case of specified employees only [See note 4]
8.	17(2)(viii) read with Rule 3(5)	Education Facilities	Taxable value of perquisites (See Note 2 below)
9.	17(2)(viii) read with Rule 3(6)	Transport facilities provided by the employer engaged in carriage of passenger or goods (except Airlines or Railways) (Taxable in case of specified employee only [See Note 4])	Value at which services are offered by the employer to the public less amount recovered from the employee shall be a taxable perquisite
10.	17(2)(v)	Amount payable by the employer to effect an insurance on life of employee or to effect a contract for an annuity	Fully Taxable
11.	17(2)(vi) read with Rule 3(8)/3(9)	ESOP/ Sweat Equity Shares	Taxable value of perquisites Fair Market value of shares or securities on the date of exercise of option by the assessee less amount recovered from the employee in respect of such shares shall be the taxable value of perquisites. Fair Market Value shall be determined as follows: a) In case of listed Shares: Average of opening and closing price as on date of exercise of option (Subject to certain conditions and circumstances) b) In case of unlisted shares/ security other than equity shares: Value determined by a Merchant Banker as on date of exercise of option or an earlier date, not being a date which is more than 180 days earlier than the date of exercise of the option. Note: The Finance Act, 2020 has deferred the taxation of perquisite in case of start-ups from date of allotment to the earliest of the following three dates: 1. Expiry of 48 months from the end of the relevant assessment year; 2. Sale of such shares by the employees; 3. Date on which employee ceases to be employee of the start-up. The eligible start-up shall accordingly, be required to deposit tax with the government within 14 days of the happening of any of the above events (whichever is earlier). However, 17(2)(vi) has not been amended, thus the income shall be computed in the year in which shares are allotted but tax shall be paid in subsequent year.
12.	17(2)(vii)	Employer’s contribution towards: a) recognised provided fund b) NPS (Section 80CCD(1)) c) Approved Superannuation fund	Taxable in the hands of employee to the extent such contribution exceed Rs.7,50,000
13.	17(2)(viii) read with Rule 3(7)(i)	Interest free loan or Loan at concessional rate of interest	Interest free loan or loan at concessional rate of interest given by an employer to the employee (or any member of his household) is a perquisite chargeable to tax in the hands of all employees on following basis: 1. Find out the ‘maximum outstanding monthly balance’ (i.e. the aggregate outstanding balance for each loan as on the last day of each month); 2. Find out rate of interest charged by the SBI as on the first day of relevant previous year in respect of loan for the same purpose advanced by it; 3. Calculate interest for each month of the previous year on the outstanding amount (mentioned in point 1) at the rate of interest (given in point 2) 4. Interest actually recovered, if any, from employee 5. The balance amount (point 3-point 4) is taxable value of perquisite Nothing is taxable if: a) Loan in aggregate does not exceed Rs 20,000 b) Loan is provided for treatment of specified diseases ( Rule 3A) like neurological diseases, Cancer, AIDS, Chronic renal failure, Hemophilia (specified diseases). However, exemption is not applicable to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.
14.	17(2)(viii) read with Rule 3(7)(ii)	Facility of travelling, touring and accommodation availed of by the employee or any member of his household for any holiday	a) Perquisite value taxable in the hands of employee shall be expenditure incurred by the employer less amount recovered from employee. b) Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public less amount recovered from employee.
15.	17(2)(viii) read with Rule 3(7)(iii)	Free food and beverages provided to the employee	1) Fully Taxable: Free meals in excess of Rs. 50 per meal less amount paid by the employee shall be a taxable perquisite 2) Exempt from tax: Following free meals shall be exempt from tax a) Food and non-alcoholic beverages provided during working hours in remote area or in an offshore installation; b) Tea, Coffee or Non-Alcoholic beverages and Snacks during working hours are tax free perquisites; c) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable, if cost to the employer is Rs. 50(or less) per meal.
16.	17(2)(viii) read with Rule 3(7)(iv)	Gift or Voucher or Coupon on ceremonial occasions or otherwise provided to the employee	a) Gifts in cash or convertible into money (like gift cheque) are fully taxable b) Gift in kind up to Rs.5,000 in aggregate per annum would be exempt, beyond which it would be taxable.
17.	17(2)(viii) read with Rule 3(7)(v)	Credit Card	a) Expenditure incurred by the employer in respect of credit card used by the employee or any member of his household less amount recovered from the employee is a taxable perquisite b) Expenses incurred for official purposes shall not be a taxable perquisite provided complete details in respect of such expenditure are maintained by the employer
18.	17(2)(viii) read with Rule 3(7)(vi)	Free Recreation/ Club Facilities	a) Expenditure incurred by the employer towards annual or periodical fee etc. (excluding initial fee to acquire corporate membership) less amount recovered from the employee is a taxable perquisite b) Expenses incurred on club facilities for the official purposes are exempt from tax. c) Use of health club, sports and similar facilities provided uniformly to all employees shall be exempt from tax.
19.	17(2)(viii) read with Rule 3(7)(vii)	Use of movable assets of the employer by the employee is a taxable perquisite	Taxable value of perquisites a) Use of Laptops and Computers: Nil b) Movable asset other than Laptops, computers and Motor Car: 10% of original cost of the asset (if asset is owned by the employer) or actual higher charges incurred by the employer (if asset is taken on rent) less* amount recovered from employee. See Note 1* for computation of perquisite value in case of use of the Motor Car
20.	17(2)(viii) read with Rule 3(7)(viii)	Transfer of movable assets by an employer to its employee	Taxable value of perquisites a) Computers, Laptop and Electronics items: Actual cost of asset less depreciation at 50% (using reducing balance method) for each completed year of usage by employer less amount recovered from the employee b) Motor Car: Actual cost of asset less depreciation at 20% (using reducing balance method) for each completed year of usage by employer less amount recovered from the employee c) Other movable assets: Actual cost of asset less depreciation at 10% (on SLM basis) for each completed year of usage by employer less amount recovered from the employee.
21.	17(2)(viii) read with Rule 3(7)(ix)	Any other benefit or amenity extended by employer to employee	Taxable value of perquisite shall be computed on the basis of cost to the employer (under an arm’s length transaction) less amount recovered from the employee. However expenses on telephones including a mobile phone incurred by the employer on behalf of employee shall not be treated as taxable perquisite.
22.	10(10CC)	Tax paid by the employer on perquisites (not provided for by way of monetary payments) given to employee	Fully exempt
23.	10(5)	Leave Travel Concession or Assistance (LTC/LTA), extended by an employer to an employee for going anywhere in India along with his family* *Family includes spouse, children and dependent brother/sister/parents. However, family doesn’t include more than 2 children of an Individual born on or after 01-10-1998.	The exemption shall be limited to fare for going anywhere in India along with family twice in a block of four years: i. Exemption limit where journey is performed by Air - Air fare of economy class in the National Carrier by the shortest route or the amount spent, whichever is less ii. Exemption limit where journey is performed by Rail - Air-conditioned first class rail fare by the shortest route or the amount spent, whichever is less iii. Exemption limit if places of origin of journey and destination are connected by rail but the journey is performed by any other mode of transport - Air-conditioned first class rail fare by the shortest route or the amount spent, whichever is less iv. Exemption limit where the places of origin of journey and destination are not connected by rail: a. Where a recognized public transport system exists - First Class or deluxe class fare by the shortest route or the amount spent, whichever is less b. Where no recognized public transport system exists - Air conditioned first class rail fare by shortest route or the amount spent, whichever is less Notes: i. Two journeys in a block of 4 calendar years is exempt ii. Taxable only in case of Specified Employees [See note 4]
24.	Proviso to section 17(2)	Medical facilities in India	1) Expense incurred or reimbursed by the employer for the medical treatment of the employee or his family (spouse and children, dependent - parents, brothers and sisters) in any of the following hospital is not chargeable to tax in the hands of the employee: a) Hospital maintained by the employer. b) Hospital maintained by the Government or Local Authority or any other hospital approved by Central Government c) Hospital approved by the Chief Commissioner having regard to the prescribed guidelines for treatment of the prescribed diseases. 2) Medical insurance premium paid or reimbursed by the employer is not chargeable to tax.
25.	Proviso to section 17(2)	Medical facilities outside India	Any expenditure incurred or reimbursed by the employer for medical treatment of the employee or his family member outside India is exempt to the extent of following (subject to certain condition): a) Expenses on medical treatment - exempt to the extent permitted by RBI. b) Expenses on stay abroad for patient and one attendant - exempt to the extent permitted by RBI. c) Cost on travel of the employee or any family or one attendant - exempt, if Gross Total Income (before including the travel expenditure) of the employee, does not exceed Rs. 2,00,000.
26.	Proviso to section 17(2)	Medical facility or reimbursement for COVID-19 treatment	Any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family in respect of any illness relating to Covid-19, shall not be taxable as perquisite in the hands of the employee. However, this benefit shall be allowed subject to certain conditions as may be notified by the Government in this behalf. [applicable w.e.f. Assessment Year 2020-21]
C.	Deduction from salary
1.	16(ia)	Standard Deduction	In case of normal tax regime • Rs. 50,000 or the amount of salary, whichever is lower In case of new tax regime under section 115BAC • Rs. 75,000 or the amount of salary, whichever is lower
2.	16 (ii)	Entertainment Allowance received by the Government employees (Fully taxable in case of other employees)	Least of the following is deductible : a) Rs 5,000 b) 1/5th of salary (excluding any allowance, benefits or other perquisite) c) Actual entertainment allowance received
3.	16(iii)	Employment Tax/Professional Tax.	Amount actually paid during the year is deductible. However, if professional tax is paid by the employer on behalf of its employee than it is first included in the salary of the employee as a perquisite and then same amount is allowed as deduction.
D.	Retirement Benefits
	a) Leave Encashment
1.	10(10AA)	Encashment of unutilized earned leave at the time of retirement of Government employees	Fully Exempt
2.	10(10AA)	Encashment of unutilized earned leave at the time of retirement of other employees (not being a Government employee)	Least of the following shall be exempt from tax: a) Amount actually received b) Unutilized earned leave* X Average monthly salary c) 10 months Average Salary** d) Rs. 25,00,000 While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer Average salary = Average Salary of last 10 months immediately preceding the retirement *Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
	b) Retrenchment Compensation
1.	10(10B)	Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947(Subject to certain conditions).	Least of the following shall be exempt from tax: a) an amount calculated as per section 25F(b) of the Industrial Disputes Act, 1947; b) Rs. 5,00,000; or c) Amount actually received Note: i. Relief under Section 89(1) is available ii. 15 days average pay for each completed year of continuous service or any part thereof in excess of 6 months is to be adopted under section 25F(b) of the Industrial Disputes Act, 1947.
	c) Gratuity
1.	10(10)(i)	Gratuity received by Government Employees (Other than employees of statutory corporations)	Fully Exempt
2.	10(10)(ii)	Death -cum-Retirement Gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).	Least of following amount is exempt from tax: 1. (15/26) X Last drawn salary* X completed year of service or part thereof in excess of 6 months. 2. Rs. 20,00,000 3. Gratuity actually received. 7 days in case of employee of seasonal establishment. * Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite
3.	10(10)(iii)	Death -cum-Retirement Gratuity received by other employees who are not covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).	Least of following amount is exempt from tax: 1. Half month’s Average Salary* X Completed years of service 2. Rs. 20,00,000 3. Gratuity actually received. Average salary = Average Salary of last 10 months immediately preceding the month of retirement * Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
	d) Pension
1.	-	Pension received from United Nation Organization by the employee of his family members	Fully Exempt
2.	10(10A)(i)	Commuted Pension received by an employee Central Government, State Government, Local Authority Employees and Statutory Corporation	Fully Exempt
3.	10(10A)(ii)	Commuted Pension received by other employees who also receive gratuity	1/3 of full value of commuted pension will be exempt from tax
4.	10(10A)(iii)	Commuted Pension received by other employees who do not receive any gratuity	1/2 of full value of commuted pension will be exempt from tax
5.	10(19)	Family Pension received by the family members of Armed Forces	Fully Exempt
6.	57(iia)	Family pension received by family members in any other case	In case of normal tax regime: • 33.33% of Family Pension subject to maximum of Rs. 15,000 In case of new tax regime under section 115BAC • 33.33% of Family Pension subject to maximum of Rs. 25,000
	e) Voluntary Retirement
1.	10(10C)	Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions)	Least of the following is exempt from tax: 1) Actual amount received as per the guidelines i.e. least of the following a) 3 months salary for each completed year of services b) Salary at the time of retirement X No. of months of services left for retirement; or 2) Rs. 5,00,000
	f) Provident Fund
1.	-	Employee’s Provident Fund	For taxability of contribution made to various employee’s provident fund and interest arising thereon see Note 3.
	g) National Pension System (NPS)
1.	10(12A)/10(12B)	National Pension System	Any payment from the National Pension System Trust to an assessee on closure of his account or on his opting out of the pension scheme referred to in section 80CCD, to the extent it does not exceed 60% of the total amount payable to him at the time of such closure or his opting out of the scheme. Note: Partial withdrawal from the NPS shall be exempt to the extent of 25% of amount of contributions made by the employee.
E.	Arrear of Salary and relief under section 89(1)
1.	15	Arrear of salary and advance salary	Taxable in the year of receipt. However relief under section 89 is available
2.	89	Relief under Section 89	If an individual receives any portion of his salary in arrears or in advance or receives profits in lieu of salary, he can claim relief as per provisions of section 89 read with rule 21A
3.	89A	Relief under Section 89A	Relief from taxation in income from retirement benefit account maintained in a notified country in accordance with rule 21AAA
F.	Other Benefits
1.	-	Lump-sum payment made gratuitously or by way of compensation or otherwise to widow or other legal heirs of an employee who dies while still in active service [Circular No. 573, dated 21-08-1990]	Fully Exempt in the hands of widow or other legal heirs of employee
2.	-	Ex-gratia payment to a person (or legal heirs) by Central or State Government, Local Authority or Public Sector Undertaking consequent upon injury to the person or death of family member while on duty [Circular No. 776, dated 08-06-1999]	Fully Exempt in the hands of individual or legal heirs
3.	-	Salary received from United Nation Organization [Circular No. 293, dated 10-02-1981]	Fully Exempt
4.	10(6)(ii)	Salary received by foreign national as an officials of an embassy, high commission, legation, consulate or trade representation of a foreign state	Fully Exempt if corresponding official in that foreign country enjoys a similar exemption
5.	10(6)(vi)	Remuneration received by non-resident foreign citizen as an employee of a foreign enterprise for services rendered in India, if: a) Foreign enterprise is not engaged in any trade or business in India b) His stay in India does not exceed in aggregate a period of 90 days in such previous year c) Such remuneration is not liable to deducted from the income of employer chargeable under this Act	Fully exempt
6.	10(6)(viii)	Salary received by a non-resident foreign national for services rendered in connection with his employment on a foreign ship if his total stay in India does not exceed 90 days in the previous year.	Fully exempt
7.	-	Salary and allowances received by a teacher /professor from SAARC member state (Subject to certain conditions).	Fully Exempt

Notes:

1. Motor Car (taxable only in case of specified employees [See note 4]) except when car owned by the employee is used by him or members of his household wholly for personal purposes and for which reimbursement is made by the employer)

S. No.	Circumstances	Engine Capacity upto 1600 cc (value of perquisite )	Engine Capacity above 1600 cc (value of perquisite)
1	Motor Car is owned or hired by the employer
1.1	Where maintenances and running expenses including remuneration of the chauffeur are met or reimbursed by the employer.
1.1-A	If car is used wholly and exclusively in the performance of official duties.	Fully exempt subject to maintenance of specified documents	Fully exempt subject to maintenance of specified documents
1.1-B	If car is used exclusively for the personal purposes of the employee or any member of his household.	Actual amount of expenditure incurred by the employer on the running and maintenance of motor car including remuneration paid by the employer to the chauffeur and increased by the amount representing normal wear and tear of the motor car at 10% p.a. of the cost of vehicle less any amount charged from the employee for such use is taxable
1.1-C	The motor car is used partly in the performance of duties and partly for personal purposes of the employee or any member of his household.	Rs. 1,800 per month (plus Rs. 900 per month, if chauffeur is also provided to run the motor car)	Rs. 2,400 per month (plus Rs. 900 per month, if chauffeur is also provided to run the motor car)
1.1-C		Nothing is deductible in respect of any amount recovered from the employee.
1.2	Where maintenances and running expenses are met by the employee.
1.2-A	If car is used wholly and exclusively in the performance of official duties.	Not a perquisite, hence, not taxable	Not a perquisite, hence, not taxable
1.2-B	If car is used exclusively for the personal purposes of the employee or any member of his household	Expenditure incurred by the employer (i.e. hire charges, if car is on rent or normal wear and tear at 10% of actual cost of the car) plus salary of chauffeur if paid or payable by the employer minus amount recovered from the employee.
1.2-C	The motor car is used partly in the performance of duties and partly for personal purposes of the employee or any member of his household	Rs. 600 per month (plus Rs. 900 per month, if chauffeur is also provided to run the motor car)	Rs. 900 per month (plus Rs. 900 per month, if chauffeur is also provided to run the motor car)
1.2-C		Nothing is deductible in respect of any amount recovered from the employee.
2	Motor Car is owned by the employee
2.1	Where maintenances and running expenses including remuneration of the chauffeur are met or reimbursed by the employer.
2.1-A	The reimbursement is for the use of the vehicle wholly and exclusively for official purposes	Fully exempt subject to maintenance of specified documents	Fully exempt subject to maintenance of specified documents
2.1-B	The reimbursement is for the use of the vehicle exclusively for the personal purposes of the employee or any member of his household	Actual expenditure incurred by the employer minus amount recovered from the employee
2.1-C	The reimbursement is for the use of the vehicle partly for official purposes and partly for personal purposes of the employee or any member of his household.	Actual expenditure incurred by the employer minus Rs. 1800 per month and Rs. 900 per month if chauffer is also provided minus amount recovered from employee.	Actual expenditure incurred by the employer minus Rs. 2400 per month and Rs. 900 per month if chauffer is also provided minus amount recovered from employee.
3	Where the employee owns any other automotive conveyance and actual running and maintenance charges are met or reimbursed by the employer
3.1	Reimbursement for the use of the vehicle wholly and exclusively for official purposes;	Fully exempt subject to maintenance of specified documents	Fully exempt subject to maintenance of specified documents
3.2	Reimbursement for the use of vehicle partly for official purposes and partly for personal purposes of the employee.	Actual expenditure incurred by the employer minus Rs. 900 per month minus amount recovered from employee	Not Applicable

2. Educational Facilities

Taxable only in the hands of specified employees [See note 4]

Facility extended to	Value of perquisite
Facility extended to	Provided in the school owned by the employer	Provided in any other school
Children	Cost of such education in similar school less Rs. 1,000 per month per child (irrespective of numbers of children) less amount recovered from employee	Amount incurred less amount recovered from employee (an exemption of Rs. 1,000 per month per child is allowed)
Other family member	Cost of such education in similar school less amount recovered from employee	Cost of such education incurred

2.1 Other Educational Facilities

Particulars	Taxable Value of Perquisites
Reimbursement of school fees of children or family member of employees	Fully taxable
Free educational facilities/ training of employees	Fully exempt

3. Employees Provident Fund

Tax treatment in respect of contributions made to and payment from various provident funds are summarized in the table given below:

Particulars	Statutory provident fund	Recognized provident fund	Unrecognized provident fund	Public provident fund
Employers contribution to provident fund	Fully Exempt	Exempt only to the extent of 12% of salary*	Fully Exempt	-
Deduction under section 80C on employees contribution	Available	Available	Not Available	Available
Interest credited to provident fund See Note	Fully Exempt	Exempt only to the extent rate of interest does not exceed 9.5%	Fully Exempt	Fully Exempt
Payment received at the time of retirement or termination of service	Fully Exempt	Fully Exempt (Subject to certain conditions and circumstances)	Fully Taxable (except employee’s contribution)	Fully Exempt

* Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits) + turnover based commission

Payment from recognized provident fund shall be exempt in the hands of employees in following circumstances:

a) If employee has rendered continue service with his employer (including previous employer, when PF account is transferred to current employer) for a period of 5 years or more

b) If employee has been terminated because of certain reasons which are beyond his control (ill health, discontinuation of business of employer, etc.)

Note:

No exemption shall be available for the interest income accrued during the previous year in the recognised and statutory provident fund to the extent it relates to the contribution made by the employees over Rs. 2,50,000 in the previous year.

However, if an employee is contributing to the fund but there is no contribution to such fund by the employer, then the interest income accrued during the previous year shall be taxable to the extent it relates to the contribution made by the employee to that fund in excess of Rs. 5,00,000 in a financial year.

4. Specified Employee

The following employees are deemed as specified employees:

1) A director-employee

2) An employee who has substantial interest (i.e. beneficial owner of equity shares carrying 20% or more voting power) in the employer-company

3) An employee whose monetary income* under the salary exceeds Rs. 50,000

*Monetary Income means Income chargeable under the salary but excluding perquisite value of all non-monetary perquisites

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Income Tax Benefits Available to Non- Residents
- For AY 2025-26

Benefits available to Non- Residents [AY 2025-26]

1. Who is a Non-Resident?

Section 2(30) defines non-resident as a person who is not a resident. Section 6 lays down the test of residency for different taxpayers as under:

A. Individual

An individual is said to be non-resident in India if he is not a resident in India.

To determine the residential status of an individual, the first step is to ascertain whether he is resident or non-resident. If he turns to be a resident, then the next step is to ascertain whether he is resident and ordinarily resident or is a resident but not ordinarily resident.

Step 1 given below will ascertain whether the individual is resident or non-resident; and step 2 will ascertain whether he is ordinarily resident or not ordinarily resident. Step 2 is to be performed only if the individual turns to be a resident in India.

Step 1: Determining whether resident or non-resident

Under the Income-tax Law, an individual will be treated as a resident in India for a year if he satisfies any of the following conditions:

1) He is in India for a period of 182 days or more in that year; or

2) He is in India for a period of 60 days or more in the year and for a period of 365 days or more in immediately preceding 4 years.

However, in respect of an Indian citizen and a person of Indian origin who visits India during the year, the period of 60 days as mentioned in (2) above shall be substituted with 182 days. The similar concession is provided to the Indian citizen who leaves India in any previous year as a crew member or for the purpose of employment outside India.

The Finance Act, 2020, w.e.f., Assessment Year 2021-22 has amended the above exception to provide that the period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose total income, other than income from foreign sources, exceeds Rs. 15 lakhs during the previous year. Income from foreign sources means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India).

Note: The Finance Act, 2020 has introduced new section 6(1A) to the Income-tax Act, 1961. The new provision provides that an Indian citizen shall be deemed to be resident in India only if his total income, other than income from foreign sources, exceeds Rs. 15 lakhs during the previous year. For this provision, income from foreign sources means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India).

However, such individual shall be deemed to be Indian resident only when he is not liable to tax in any country or jurisdiction by reason of his domicile or residence or any other criteria of similar nature.

Thus, from Assessment Year 2021-22, an Indian Citizen earning total income in excess of Rs. 15 lakhs (other than from foreign sources) shall be deemed to be resident in India if he is not liable to pay tax in any country.

If an individual does not satisfy any of the above conditions then he will be treated as non-resident in India.

Step 2: Determining whether resident and ordinarily resident or resident but not ordinarily resident

A resident individual will be treated as resident but not ordinarily resident in India during the year if he satisfies the following conditions:

1) He is non-resident in India in 9 out of last 10 years immediately preceding the relevant year; or

2) His stay in India is for 729 days or less in last 7 years immediately preceding the relevant year.

However, w.e.f., Assessment Year 2021-22, the Finance Act, 2020 has inserted the following two more situations wherein a resident person is deemed to be ‘Not Ordinarily Resident’ in India:

a) An Indian Citizen or a person of Indian origin whose total income (other than income from foreign sources) exceeds Rs. 15 lakhs during the previous year and who has been in India for a period of 120 days or more but less than 182 days;

b) An Indian Citizen who is deemed to be resident in India as per new section 6(1A).

A resident individual satisfies one of the aforesaid conditions will be treated as resident but not ordinarily resident.

In short, following test will determine the residential status of an individual:

1. If the individual satisfies any one or both the conditions specified at step 1 and satisfies none of the conditions specified at step 2, then he will become resident and ordinarily resident in India.

2. If the individual satisfies any one or both the conditions specified at step 1 and satisfies any of the conditions specified at step 2, then he will become resident but not ordinarily resident in India.

3. If the individual satisfies none of the conditions specified at step one, then he will become non-resident.

Note:

“Liable to tax” in relation to a person and with reference to a country means that there is an income-tax liability on such person under the law of that country for the time being in force. It shall include a person who has subsequently been exempted from such liability under the law of that country.

B. Partnership firm

A partnership firm is treated as non-resident in India if control and management of its affairs are situated wholly outside India.

C. Company

An Indian company is always resident in India. A foreign company is treated as resident if, during the previous year, control and management of its affairs is situated wholly in India. In other words, a foreign company is treated as non-resident if control and management of its affairs is situated wholly or partly outside India.

With effect from Assessment Year 2017-18, a company is said to be resident in India in any previous year, if:

(i) it is an Indian company; or

(ii) its place of effective management, in that year, is in India.

For this purpose, the “place of effective management” means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made.

2. Scope of Total Income

As per Section 5 of the Income-tax Act, 1961, unlike a resident person who is liable to pay tax on his global income, a non-resident shall be liable to tax in India in respect of following incomes only:

1) Income received or is deemed to be received in India in such year; or

2) Income accrues or arises or is deemed to accrue or arise to him in India during such year.

3. Indirect transfer of a capital asset situated in India

As per section 9(1)(i), any income accruing or arising, whether directly or indirectly, through transfer of a capital asset situated in India shall be deemed to accrue or arise in India.

The Finance Act, 2012 inserted Explanation 5 to section 9(1)(i) w.e.f. 01.04.1962 to clarify that an asset or capital asset, being any share or interest in a company or entity registered or incorporated outside India, shall be deemed to be situated in India if the share or interest derives, directly or indirectly, its value substantially from the assets located in India.

However, The Finance Act, 2017 inserted proviso to provide that Explanation 5 shall apply to an asset or capital asset, which is held by a non-resident by way of investment, directly or indirectly, in a Foreign Institutional Investor as referred to in clause (a) of the Explanation to section 115AD for an assessment year commencing on or after the 1st day of April, 2012 but before the 1st day of April, 2015.

A new Explanation 6 is inserted to section 9(1)(i) by the Finance Act, 2015 w.e.f 01.04.2016 to define the term "substantially". It provides that share or interest in a company or entity registered or incorporated outside India shall be deemed to derive its value substantially from the assets located in India, if, on the specified date, the value of such assets:

(i) exceeds Rs. 10 Crore; and

(ii) represents at least 50% of the value of all the assets owned by the company or entity, as the case may be.

Further, a new Explanation 7 is inserted to provide that no income shall be deemed to accrue or arise to a non-resident from transfer, outside India, of any share of, or interest in, a company or an entity, registered or incorporated outside India, referred to in the Explanation 5:

(i) if such company or entity directly owns the assets situated in India and the transferor (whether individually or along with its associated enterprises), at any time in the twelve months preceding the date of transfer, neither holds the right of management or control in relation to such company or entity, nor holds voting power or share capital or interest exceeding five per cent of the total voting power or total share capital or total interest, as the case may be, of such company or entity; or

(ii) if such company or entity indirectly owns the assets situated in India and the transferor (whether individually or along with its associated enterprises), at any time in the twelve months preceding the date of transfer, neither holds the right of management or control in relation to such company or entity, nor holds any right in, or in relation to, such company or entity which would entitle him to the right of management or control in the company or entity that directly owns the assets situated in India, nor holds such percentage of voting power or share capital or interest in such company or entity which results in holding of (either individually or along with associated enterprises) a voting power or share capital or interest exceeding five per cent of the total voting power or total share capital or total interest, as the case may be, of the company or entity that directly owns the assets situated in India;

In a case where all the assets owned, directly or indirectly, by a company or, as the case may be, an entity referred to in the Explanation 5, are not located in India, the income of the non-resident transferor, from transfer outside India of a share of, or interest in, such company or entity, deemed to accrue or arise in India under this clause, shall be only such part of the income as is reasonably attributable to assets located in India and determined in such manner as may be prescribed.

4. Certain activities not to constitute business connection in India

The Finance Act, 2003 has inserted Explanation 2 to section 9(1)(i) w.e.f. 01.04.2004 to broadly explain the term 'business connection'.

After substituting the clause (a) of Explanation 2 to 9(1)(i) by the Finance Act, 2018,the term 'business connection' shall include any business activity carried out through a person who, acting on behalf of the non-resident::

(a) has and habitually exercises in India, an authority to conclude contracts on behalf of non-resident or habitually concludes contracts or habitually plays the principal role leading to conclusion of contracts by that non-resident and the contracts are:

(i) in the name of the non-resident; or

(ii) for the transfer of the ownership of, or for the granting of the right to use, property owned by that non-resident or that non-resident has the right to use; or

(iii) for the provision of services by the non-resident; or

(b) has no such authority, but habitually maintains in India a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the non-resident; or

(c) habitually secures orders in India, mainly or wholly for the non-resident or for that non-resident and other non-residents controlling, controlled by, or subject to the same common control, as that non-resident.

Further, after Explanation 2, the following Explanation has also been inserted, namely:––

'Explanation 2A.––For the removal of doubts, it is hereby clarified that the significant economic presence of a non-resident in India shall constitute "business connection" in India and "significant economic presence" for this purpose, shall mean:

(a) transaction in respect of any goods, services or property carried out by a non-resident in India including provision of download of data or software in India, if the aggregate of payments arising from such transaction or transactions during the previous year exceeds such amount as may be prescribed; or

(b) Systematic and continuous soliciting of business activities or engaging in interaction with such number of users as may be prescribed, in India through digital means:

The transactions or activities shall constitute significant economic presence in India, whether or not the agreement for such transaction is entered in India or non-resident has a residence or place of business in India or renders services in India.

A new Section 9A is inserted by the Finance Act, 2015. It provides that in the case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund (subject to certain conditions).

It further provides that an eligible investment fund shall not be said to be resident in India for the purpose of section 6 merely because the eligible fund manager, undertaking fund management activities on its behalf, is situated in India.

(Refer Section 9A for meaning of 'Eligible Investment Fund', 'Eligible Fund Manager' and other conditions).

5. Exemption from applicability of section 206AA to non-residents

Section 206AA provides that where the taxpayer does not furnish its PAN to the person responsible for withholding of tax, tax shall be deducted at source at higher of the following rates:

(a) rate specified in the relevant provision of this Act;

(b) rate or rates in force; or

However, the provisions of section 206AA shall not apply to a non-resident, not being a company, or to a foreign company, in respect of—

(i) payment of interest on long-term bonds as referred to in section 194LC; and

(ii) any other payment subject to such conditions as may be prescribed.

As per Rule 37BC, if deductee is a non-resident or a foreign company, he is not required to furnish his PAN to the deductor if he is in receipt of following income:

1. Interest

2. Royalty

3. Fees for technical services

4. Dividend

5. Payments for transfer of any capital asset.

However, the deductee is required to furnish the following details and documents to the deductor:

1. Name, e-mail id and contact number

2. Address in the country of which he is a resident

3. Certificate of Residence from the Government of his home country, if the law of that country provides for issuance of such certificate

4. Tax Identification Number allotted in his home country and if such number is not available, then a unique number on the basis of which he can be identified by the Government of his home country.

6. Relaxation to first time resident foreign companies

Section 115JH provides relaxation to foreign companies from certain compliances if such company is held to be resident in India for the first time. It is provided that provisions relating to computation of income, treatment of unabsorbed depreciation, set off or carry forward of losses, advance tax, TDS or transfer pricing shall apply to said company subject to such modifications or exceptions, as may be prescribed by the Government.

7. Tax incentive to unit located in international financial services center

Rate of MAT and AMT shall be 9% in case of unit located in International Financial Services Center ('IFSC'), provided such unit derives its income solely in convertible foreign exchange. A unit located in IFSC, deriving income solely in convertible foreign exchange, shall not be subject to dividend distribution tax on declaration of dividend out of its current income.

No Securities Transaction Tax (STT) and Commodities transaction tax would be levied on transactions undertaken on a recognised stock exchange located in IFSC if consideration is paid or payable in foreign currency.

7A. Exemption from condition of payment of STT by IFSC in case of capital gains taxable under Section 112A

As per Section 112A, the capital gains arising from transfer of long-term capital assets, being listed equity shares, units of equity oriented fund or unit of business trust, in excess of Rs. 1 lakh (Rs. 1.25 lakhs if the transfer took place on or after 23-07-2024) shall be chargeable to tax at the rate of 10% (12.5% if the transfer took place on or after 23-07-2024).

The capital gains shall be taxable under Section 112A if securities transaction tax (STT) is paid on acquisition and transfer of listed equity shares. While as in the case of unit of equity oriented fund or unit of business trust, the STT is to be paid at the time of transfer of such capital asset. However, this condition of payment of STT shall not apply to transfer undertaken on a recognized stock exchange located in IFSC and the consideration for such transfer is received or receivable in foreign currency.

7B. Exemption from MAT in case foreign companies opt for presumptive taxation scheme

The Finance Act, 2018 inserts a new Explanation 4A to Section 115JB to provide exemption from applicability of MAT provisions in case of a foreign company, if its total income comprises solely of profits from business referred to in Sections 44B, 44BB, 44BBA or 44BBB and such income has been offered to tax at the rates specified in those sections.

8. Provisions for taxability of Non-residents

S.N.	Section	Particulars	Limit of exemption or deduction or Computation of income	Available to
A. Income not chargeable to tax
1.	10(4)(i)	Interest on bonds or securities notified before 01-06-2002 by the Central Government including premium on redemption of such bonds.	Interest amount	Non resident
2.	10(4)(ii)	Interest on money standing to the credit in a Non-resident (External) account in India.	Interest amount	Person resident outside India (under FEMA Act) and person who has been permitted to maintain said account by RBI
3.	10(4B)	Interest on notified savings certificates issued before 01-06-2002 by the Central Government and subscribed to in convertible foreign exchange.	Interest amount	Individual, being a citizen of India or a person of Indian Origin, who is a non resident.
3A.	10(4C)	Interest on Rupee Denominated Bonds (as referred to in Section 194LC) issued outside India during the period 17-09-2018 to 31-03-2019 by an Indian company/business trust	Interest amount	Non-resident person or foreign company
3B.	10(4D)	Income accrued or arisen or received by specified fund which is attributable to units held by a non-resident (not being a PE in India) or to the investment division of offshore banking unit. Such exemption is allowed in respect of the following incomes: (a) Income from transfer of a capital asset as referred to in Section 47(viiab) on a recognised stock exchange located in IFSC and consideration is paid or payable in ‘convertible foreign exchange’; (b) Income arising from transfer of securities (other than shares in a company resident in India); (c) Income from securities issued by a non-resident (not being a PE of a non-resident in India) and where such income otherwise does not accrue or arise in India; or (d) Income from a securitization trust which is chargeable under the head ‘Profits and gains from business or profession’ to the extent such income accrued or arisen to or is received, is attributable to units held by non-resident (not being the permanent establishment of NR); or is attributable to the investment division of offshore banking unit.	Capital Gain/PGBP	Specified Fund
3C.	10(4E)	Transfer of non-deliverable forward contracts or offshore derivative instruments or over the counter derivative or income distributed on the offshore derivative instruments entered into with an offshore banking unit of IFSC as referred in section 80LA(1A) and fulfils prescribed conditions	Entire income	Non-resident
3D.	10(4F)	Income on account of leasing of aircraft or a ship in a previous year, paid by a unit of an IFSC unit as referred to in section 80LA(1A), if unit has commenced operations on or before the 31st March 2025	Royalty or interest income	Non-resident
3E.	10(4G)	Income by way of portfolio of securities or financial products or funds which is managed or administered by a portfolio manager on behalf of a non-resident in an account maintained with an Offshore Banking unit in an IFSC as referred in section 80LA(1A). The CBDT may also notify specified activity carried out by specified person that will fall under scope of this section.	Income from portfolio services	Non-resident
3F.	10(4H)	Income earned by a non-resident or Unit of an IFSC as referred to in section 80LA(1A). The exemption shall be allowed subject to the following conditions: (a) Non-resident or Unit of an IFSC must be engaged primarily in the business of leasing of an aircraft; (b) Income should be in the nature of capital gains arising from the transfer of equity shares of a domestic company; (c) Domestic company must be a Unit of an IFSC as referred to in section 80LA(1A); (d) Domestic company must be engaged primarily in the business of leasing of an aircraft; (e) Domestic company must commence its operations on or before 31-03-2026; (f) Equity shares of the domestic company must be transferred within 10 years of commencing of its operations. However, if the domestic company commenced its operations before 01-04-2025, the 10-year time limit shall be counted from 01-04-2025. For the above purposes "aircraft" means an aircraft, helicopter, an engine or part of an aircraft or a helicopter.	Income from Capital Gains (transfer of equity shares of a domestic company) or PGBP (engaged in the business of leasing an aircraft)	Non-Resident or a Unit of IFSC
4.	10(6)(ii)	Remuneration received by Foreign Diplomats/Consulate and their staff (Subject to conditions)	Remuneration	Individual (not being a citizen of India)
5.	10(6)(vi)	Remuneration received by non-Indian citizen as employee of a foreign enterprise for services rendered by him during his stay in India, if: a) Foreign enterprise is not engaged in any trade or business in India b) His stay in India does not exceed in aggregate a period of 90 days in such previous year c) Such remuneration is not liable to be deducted from the income of employer chargeable under this Act	Remuneration	Individual - Salaried Employee (not being a citizen of India)
6.	10(6)(viii)	Salary received by a non-resident, for services rendered in connection with his employment on a foreign ship if his total stay in India does not exceed 90 days in the previous year.	Salary	Non-resident Individual - Salaried Employee (not being a citizen of India)
7.	10(6)(xi)	Remuneration received by an Individual, who is not a citizen of India, as an employee of the Government of a foreign state during his stay in India in connection with his training in any Government Office/Statutory Undertaking, etc.	Remuneration	Individual-Salaried Employee (not being a citizen of India)
8.	10(6A)	Tax paid by Government or Indian concern on royalty or FTS from Government or Indian concern under agreement made before 1-6-2002 which either relates to a matter included in the industrial policy of the Government and is in accordance with that policy or is approved by Central Government	Tax liability of foreign company borne by taxpayer	Foreign Company
9.	10(6B)	Tax paid by Government or Indian concern under terms of agreement entered into before 1-6-2002 by Central Government with Government of foreign State or international organization on income derived from Government or Indian concern, other than income by way of salary, royalty or fees for technical services	Tax liability of non-resident borne by taxpayer	Non-resident
10.	10(6BB)	Tax paid by Indian company, engaged in the business of operation of aircraft, who has acquired an aircraft or its engine on lease, under an approved (by Central Government) agreement entered into between 31-3-1997 and 1-4-1999, or after 31-3-2007, on lease rental/income	Tax liability so borne by Indian Company	Government of foreign State or foreign enterprise
11.	10(6C)	Income by way of royalty or fees for technical services rendered in India or abroad in projects connected with security of India pursuant to agreement with Central Government	Royalty and fee for technical services	Notified foreign company
11A	10(6D)	Income by way of royalty or FTS for services rendered in or outside India to the National Technical Research Organization.	Entire Income	Non-resident or Foreign Company
12.	10(15)(iid)	Interest on notified bonds (notified prior to 01-06-2002) purchased in foreign exchange (subject to certain conditions)	Interest Amount	Individual, being a: a) NRI or nominee or survivor of NRI; b) Individual to whom bonds have been gifted by NRI.
	10(15)(iii)	Interest on securities	Interest amount	Issue Department of Central Bank of Ceylon
	10(15)(iiia)	Interest on deposits made with scheduled bank with approval of RBI	Interest amount	Bank incorporate abroad
	10(15)(iiib)	Interest payable to Nordic Investment Bank on a loan advanced to a project approved by the Central Government.	Interest amount	Nordic Investment Bank
	10(15)(iiic)	Interest payable to the European Investment Bank on loan granted by it in pursuance of framework agreement dated 25-11-1993 for financial corporation between Central Government and that Bank	Interest amount	European Investment Bank
	10(15)(iv)(b)	Interest received from industrial undertaking in Indian on money lent to it under a loan agreement entered into before 01-06-2001	Interest amount	Approved foreign financial institution
	10(15)(iv)(fa)	Interest payable by scheduled bank on deposits in foreign currency where acceptance of such deposit by the bank is duly approved by RBI.	Interest amount	a) Non-resident b) Individual or HUF being a resident but not ordinary resident
	10(15)(viii)	Interest on deposit made on or after 01.04.2005 in an offshore Banking Unit referred to in Section 2(u) of the Special Economic Zones Act, 2005.	Interest amount	Person who is a non-resident or not ordinarily resident.
	10(15)(ix)	Any interest payable in respect of money borrowed by a unit located in IFSC on or after September 1, 2019.	Interest amount	Non-resident
12A.	10(15B)	Income from the lease rental received from cruise ships operating in India	Lease rental income	Foreign Company
13.	10(23BBB)	Income of European Economic Community from interest, dividends or capital gains from investment of funds under specified scheme	Specified interest, dividends or capital gains	European Economic Community
14.	10(23BBC)	Income of SAARC Fund for Regional Projects set up by Colombo Declaration issued on 21-12-1991	Entire income	SAARC Fund for Regional Projects
14A.	10(23FBC)	Income from specified fund or transfer of unit in specified fund Note: Specified fund means fund as referred to in Section 10(4D)	Entire income	Unit holder
14B.	10(23FE)	Income of a specified person Note: ‘Specified person’ means: a) Wholly owned subsidiary of Abu Dhabi Investment Authority, which is resident of UAE and makes investment, directly or indirectly, out of the fund owned by the Government of the Abu Dhabi. b) Sovereign wealth fund and pension fund which satisfies prescribed conditions.	Dividend, interest, any sum referred to in clause (xii) of section 56(2), or long-term capital gains arising from an investment made in India	Specified person
14C.	10(23FF)	Income on transfer of shares of a company resident in India, by the resultant fund or specified fund if prescribed conditions are satisfied	Capital gain	Non-resident
16D	10(34B)	Dividend income earned by an IFSC unit primarily engaged in aircraft leasing business. However, the exemption is subject to the condition that the company paying the dividend should also be an IFSC unit and engaged in the aircraft leasing business.	Dividend Income	IFSC engaged in the business of leasing aircrafts.
15.	10(48)	Any income received in India in Indian currency by a foreign company on account of sale of crude oil or any other goods or rendering of services as may be notified by the Central Government, to any person in India under an approved and notified agreement or arrangement (Subject to certain conditions)	Specified Income	Foreign Company
16.	10(48A)	Any income accruing or arising to a foreign company on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India (subject to certain conditions)	Entire income	Foreign company
16A.	10(48B)	Any income arising to a foreign company on account of sale of leftover stock of crude oil from the facility in India after expiry of the agreement referred to in 10(48A) or on termination of the said agreement (Subject to certain conditions)	Entire Income	Foreign Company
17.	10(50)	Any income which is chargeable to equalization levy under Chapter VIII of the Finance Act, 2016.	Entire income	Non-resident
B. Income under the head Profit and gains from business or profession
1.	44B read with 172	Income from shipping business shall be computed on presumptive basis (Subject to certain conditions).	7.5% of specified sum shall be deemed to be the presumptive income	Non-resident engaged in shipping business
2.	44BB	Income of a non-resident engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils shall be computed on presumptive basis (Subject to certain conditions).	10% of specified sum shall be deemed to be the presumptive income	Non-resident engaged in activities connected with exploration of mineral oils
3.	44BBA	Income of a non-resident engaged in the business of operation of aircraft shall be computed on presumptive basis (Subject to certain conditions).	5% of specified sum shall be deemed to be the presumptive income	Non-resident engaged in the business of operating of aircraft
4.	44BBB	Income of a foreign company engaged in the business of civil construction or the business of erection of plant or Machinery or testing or commissioning there of, in connection with a turnkey power projects shall be computed on presumptive basis (Subject to certain conditions).	10% of specified sum shall be deemed to be the presumptive income	Foreign Company
4A.	44BBC	Presumptive taxation scheme for the business of operation of cruise ships by non-residents	20% of the specified amounts shall be deemed to be the presumptive income.	Non-resident
5.	44C	Deduction for Head office Expenditure (Subject to certain conditions and limits)	Deduction for head-office expenditure shall be limited to lower of following: a) 5% of adjusted total income* ; or b) Head office exp. as attributable to business or profession of taxpayer in India * In case where adjusted total income of assessee is a loss, adjusted total income shall be substituted by average adjusted total income ** Adjusted total income or average adjusted total income shall be computed after prescribed adjustments i.e. unabsorbed depreciations, carry forward losses, etc.	Non-resident
6.	44DA	Deduction of expenditure from royalty and FTS received under an agreement made after 31-03-2003 which is effectively connected to the PE of non-resident in India (Subject to certain conditions)	Expenditure incurred wholly and exclusively for the business of PE or fixed place of profession in India shall be allowed as deduction.	Non-resident (not being a company) or Foreign Company
C. Income under the head Capital Gains
1.	47(via)	Transfer of a capital asset being shares in an Indian company by the amalgamating foreign company to the amalgamated foreign company (in scheme of amalgamation) shall not be treated as 'transfer' (Subject to certain conditions).	No capital gains shall arise in the hands of foreign amalgamating company due to transfer of capital assets.	Foreign amalgamating company
2.	47(viab)	Transfer of share of a foreign company (which derives, directly or indirectly, its value substantially from the share or shares of an Indian company) held by a foreign company to another foreign company under a scheme of amalgamation shall not be regarded as transfer (Subject to certain conditions)	No capital gains shall arise in the hands of foreign amalgamating company	Foreign amalgamating company
2A.	47(viiab)	Transfer of bonds or GDRs as referred to in Sec. 115AC(1) or Rupee Denominated Bond of Indian Co. or Derivative or any other specified security by a non-resident on a recognized stock exchange located in any IFSC and where the consideration is paid in foreign currency	No capital gains shall arise in the hands of non-resident	Non-resident
3.	47(vic)	Transfer of a capital asset being shares in an Indian company by the demerged foreign company to the resulting foreign company (in scheme of demerger) shall not be treated as 'transfer' (Subject to certain conditions).	No capital gains shall arise in the hands of foreign demerged company due to transfer of capital assets.	Foreign demerged company
4.	47(vicc)	Transfer of share of a foreign company (which derives, directly or indirectly, its value substantially from the share or shares of an Indian company) held by a demerged foreign company to resulting foreign company pursuant to demerger shall not be regarded as transfer (Subject to certain conditions)	No capital gains shall arise in the hands of foreign demerged company	Foreign demerged company
5.	47(viia)	Transfer of capital asset being bonds or GDR [referred to in section 115AC(1)] outside India by one non-resident to another non-resident shall not be treated as 'transfer'.	No capital gains shall arise in the hands of non-resident transferor	Non-resident
5A	47(viiaa)	Transfer of capital asset being rupee denominated bond of an Indian company issued outside India by one non-resident to another non-resident shall not be treated as 'transfer'.	No capital gains shall arise in the hands of non-resident transferor	Non-resident
5B	47(viiac)	Transfer of a capital asset by the original fund to the resultant Fund, in relocation, shall not be considered as a transfer for capital gain tax purpose Note: Refer Explanation to section 10(viiad) for meaning of original fund, relocation & resultant fund.	Amount of capital gain	Non-resident
5C	47(viiad)	Transfer of capital asset being share or unit or interest (in relocation) held by shareholder or unit holder in original fund, in consideration for share or unit or interest in resultant fund Note: Refer Explanation to section 10(viiad) for meaning of original fund, relocation & resultant fund.	Amount of capital gain	Non-resident
6.	47(viib)	Transfer of a capital asset, being a Government security carrying a periodic payment of interest, made outside Indian (through an intermediary dealing in settlement of securities) by a non-resident to another non-resident shall not be treated as 'transfer' (Subject to certain conditions).	No capital gains shall arise in the hands of non-resident transfer	Non-resident
7.	First Proviso to 48	Computation of capital gains when shares or debentures in an Indian Company are transferred which were acquired in foreign currency (Subject to certain conditions)	Capital gain shall be computed in same foreign currency (utilized for acquiring shares or debentures) which shall be reconverted into Indian currency (without providing benefit of indexation)	Non-resident
8.	115F	Long-term capital gain arising from transfer of specified foreign exchange assets shall be exempt from tax if net consideration is invested within six months after date of transfer in any specified asset or deposited in notified saving certificates (Subject to certain conditions).	Amount of exemption shall be computed in following manner: Amount invested in new asset X Capital gains / Net Sales consideration	Non-resident Indian
D. Other Provisions
1.	90	A non-resident can apply either provisions of the Act or the relevant DTAA (India has entered into with counterpart foreign country), whichever is more beneficial.	Beneficial provisions of DTAA or the Income-tax Act	Non-resident
2.	95	Provisions of GAAR shall be applicable in respect of any assessment year beginning on or after April 1, 2018.	-	-
3.	192	If net taxable income (being income from employment) is less than maximum amount which is not chargeable to tax (Rs. 2,50,000) no tax shall be deducted at source.	No deduction of tax at source from salaries	Non-resident - Individual
4.	245N, 245Q	A non-resident applicant can apply before Authority for Advance Ruling for determination of tax liability that may arise out of a business carried out in India (Subject to certain conditions) Note: The Finance Act, 2021 has provided that the Authority for Advance Rulings shall cease to operate with effect from such date, as may be notified by the Central Government in the Official Gazette.	Non-resident can file application for Advance Ruling	Non-resident
4A.	245-OB	The Central Government to constitute one or more Board for Advance Rulings for giving advance rulings on and after the notified date.	Non-resident can file application for Advance Ruling	Non-resident
5.	115G	A non-resident Indian shall not be required to file his return of income if his total income consists only following incomes and tax has been deducted therefrom: a) Income from investment in foreign exchange assets b) Long-term capital gains arising from transfer of foreign exchange assets.	Exemption from filing of return of income	Non-resident Indian

* For detailed conditions refer Income Tax Act, 1961

Notes:

a) "Foreign Exchange Asset" means any "specified asset" which the assessee has acquired or purchased with, or subscribed to in, convertible foreign exchange [Section 115C(b)].

b) In view of Section 115(f), "Specified asset" means any of the following assets, namely:

(i) Shares in an Indian company;

(ii) Debentures issued by an Indian company which is not a private company;

(iii) Deposits with an Indian company which is not a private company;

(iv) Any security of the Central Government;

(v) Other notified assets

c) 'Non-resident Indian' means an individual, being citizen of India or a person of Indian origin who is not a "resident" [Section 115(e)].

9. Special Rates of Taxes for Non-Resident

S.N.	Section	Particulars	Rates
1.	112(1)(c)	Long Term Capital Gains	20%- If transfer takes place before 23-07-2024 12.50% - If transfer takes place on or after 23-07-2024
2.	112(1)(c)	Long term capital gains arising from transfer of a capital asset, being unlisted securities or shares of a company not being a company in which public are substantially interested.	10%- If transfer takes place before 23-07-2024 12.50% - If transfer takes place on or after 23-07-2024
3.	112(1)(c)	Concessional rate of tax if long term capital gains arising from transfer of listed securities or units or zero coupon bonds is calculated without taking into consideration the benefit of indexation.	10%
4.	111A	Concessional rate of tax if short term capital gains arising from transfer of equity shares or units of an equity oriented fund, or a unit of business trust is chargeable to securities transaction tax. With effect from assessment year 2016-17 the concessional tax rate shall also apply to any income arising from transfer of any units of a business trust which were acquired in consideration of a transfer referred to in section 47(xvii) and in respect of which security transaction tax has been paid.	15%- If transfer takes place before 23-07-2024 20% - If transfer takes place on or after 23-07-2024
5.	112A	Long-term capital gains arising from transfer of capital assets, being listed equity shares, units of equity oriented fund or unit of business trust. The capital gains shall be computed without applying the first and second proviso to Section 48.	10%- If transfer takes place before 23-07-2024 12.50% - If transfer takes place on or after 23-07-2024
5A.	115AD	Income in respect of securities received by foreign institutional investor as specified by the Government or by a specified Fund: • Short term capital gain covered by section 111A (if transfer takes place before 23-07-2024) • Short term capital gain covered by section 111A (if transfer takes place on or after 23-07-2024) • Any other short-term capital gain • Long-term capital gain • Long-term capital gain (referred to in section 112A) in excess of Rs. 1 lakh (if transfer takes place before 23-07-2024) • Long-term capital gain (referred to in section 112A) in excess of Rs. 1.25 lakh (if transfer takes place on or after 23-07-2024) • Interest referred to in section 194LD • Other income in the case of FII • Other income in the case of specified Fund	15% 20% 30% 10% 10% 12.5% 5% 20% 10%
6.	115A(1)(a)(i)	Dividends	20%
6A.	115A(1)(a)(i)	Dividend from a unit located in IFSC (as referred to in section 80LA(1A)	10%
7.	115A(1)(a)(ii)	Interest received from Government or an Indian concern on monies borrowed or debt incurred in foreign currency	20%
8.	115A(1)(a)(iia)	Interest from notified Infrastructure Debt Fund as referred to in section 10(47)	5%
9.	115A(1)(a)(iiaa)	Interest of the nature and extent referred to in Section 194LC	5% or 4% or 9%
10.	115A(1)(a)(iiab)	Interest of the nature and extent referred to in Section 194LD	5%
11.	115A(1)(a)(iiac)	Distributed income being interest referred to in Section 194LBA	5% or 10% or 30%
12	115A(1)(a)(iii)	Income in respect of units purchased of a Mutual Funds in foreign currency [specified under section 10(23D) or of UTI]	20%
13.	115A(1)(b)	Income by way of Royalty or FTS (other than income referred to in Section 44DA) received in pursuance of an agreement made at any time after 31-03-1976.	20%
14.	115AB	Income of an overseas financial organization on transfer of units purchased in foreign currency being long-term capital gains (if transfer takes place before 23-07-2024	10%
14A.	115AB	Income of an overseas financial organization on transfer of units purchased in foreign currency being long-term capital gains (if transfer takes place on or after 23-07-2024)	12.5%
14B.	115AB	Income of an overseas financial organisation in respect of units purchased in foreign currency	10%
14C.	115AC	Income from bonds or GDRs of a public sector company sold by the Government and purchased in foreign currency	10%
15.	115AC	Income from long-term capital gains arising from transfer of bonds or GDRs (if transfer takes place before 23-07-2024	10%
15A.	115AC	Income from long-term capital gains arising from transfer of bonds or GDRs (if transfer takes place on or after 23-07-2024)	12.5%
16.	115AD(1)(b)	Short term capital gains earned by specified fund or FIIs as referred to in Section 111A	15%
16A.	115AD(1)(b)	Short term capital gains earned by specified fund or FIIs as referred to in Section 111A	15%
17.	115AD(1)(b)	Any other short term capital gain earned by specified fund or FIIs (other than as referred to in Section 111A)	30%
18.	115AD(1)(b)	Long term capital gains earned by specified fund or FIIs	10%
19.	115AD(1)(a)	Interest referred to in section 194LD earned by specified fund or FIIs	5%
20.	115AD(1)(a)	Other income earned by specified fund or FIIs	20% for FIIs & 10% for specified fund
21.	115BBA(1)(a)/(b)	Income of a non-resident foreign citizen sportsman for participation in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sport association by way of guarantee money	20%
22.	115BBA(1)(c)	Income of non-resident foreign citizen (being an entertainer) for performance in India	20%
23.	115E	Income from specified asset purchased in foreign currency	20%
24.	115E	Long-term capital gains arising from transfer of specified asset purchased in foreign currency	10%
25.	115E	Income from long-term capital gains of an asset other than a specified asset	20%

7. Applicability of Minimum Alternative Tax (MAT) on foreign companies

In respect of a foreign company, capital gains arising from transfer of securities, interest, royalty and fees for technical services accruing or arising to such foreign company shall be excluded from book profit for the purpose of charging MAT if income-tax payable by foreign company on such income is at rate less than 15%. Further, expenditure, if any, debited to the profit loss account, in respect of such income shall also be added back to the book profit for the purpose of computation of MAT.

However, provisions of section 115JB shall not be applicable with effect from April 1, 2001 to a foreign company, if—

(i) the assessee is a resident of a country or a specified territory with which India has an Double Taxation Avoidance Agreement ('DTAA) or the Central Government has adopted any agreement under sub-section (1) of section 90A and the assessee does not have a permanent establishment in India; or

(ii) the assessee is a resident of a country with which India does not have an DTAA and the assessee is not required to seek registration under any law for the time being in force relating to companies.

[As amended by Finance (No. 2) Act, 2024]

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Income Tax Benefits Available Only To Individuals & HUFs
- For AY 2025-26

A. Tax Rates and Relief

[AY 2025-26]

S.N.	Particulars	Benefits	Available to
1.	Maximum amount of income which is not chargeable to Income-tax	Rs. 2,50,000	Individual/HUF
2.	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen, who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year	Rs. 3,00,000	Resident Senior Citizen
3.	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen who is at least 80 Years of age at any time during the previous year	Rs. 5,00,000	Resident Super Senior Citizen
4.	Rebate to resident individual whose total income does not exceed Rs. 5,00,000 [Section 87A]	Tax payable but subject to maximum of Rs. 12,500	Resident Individual
5.	Rebate to resident individual whose total income is chargeable to tax under section 115BAC(1A) and total income does not exceed Rs. 7,00,000 [Section 87A]	Tax payable but subject to maximum of Rs. 25,000	Resident Individual
6.	HUF is assessed to tax as a separate entity	HUF is treated as a person distinct from Individual members or Karta.	HUF
7.	Concessional tax regime under section 115BAC	Option for payment of taxes at reduced rates (subject to certain conditions)	Individuals and HUF

B. Income Exempt from Tax

S.N.	Section	Particulars	Limit of exemption	Available to
1.	10(2)	Amount received by individual member from HUF. [Subject to the provisions of Section 64(2)]	Entire amount	Individual, being a member of an HUF
2.	10(2A)	Share of profit received by partners from a partnership firm.	Entire amount	Partners in a partnership firm
3.	10(4)(ii)	Interest on money standing to the credit in a Non-resident (External) account in India.	Entire amount	Person resident outside India (under FEMA Act) and person who has been permitted to maintain said account by RBI
4.	10(4B)	Interest on notified savings certificates issued before 01-06-2002 by the Central Government and subscribed to in convertible foreign exchange.	Entire Amount	Individual, being a citizen of India or a person of Indian Origin, who is a non resident.
5.	10(5)	Leave travel concession or assistance received by an employee (Subject to certain conditions and limited to amount actually spent) Notes: • The amount should be received by employee from his employer or former employer for leave to any place in India during term of service or after retirement/termination; • Exemption shall be available for amount incurred in respect of fare for going anywhere in India by employee along with his family. The family means — her/his spouse and children, parents, brothers and sisters only when they are wholly or mainly dependent on the assessee. • The exemption can be availed for two journeys in a block of 4 calendar years. • Exemption shall be available for journey performed by a shortest route and by prescribed mode of transportations in prescribed situations.	Limited to amount actually spent and subject to maximum limits as specified	Individual - Salaried Employee
6.	10(6)(ii)	Remuneration received by Foreign Diplomats/Consulate and their staff (Subject to conditions)	Entire Amount	Individual (not being a citizen of India)
7.	10(6)(vi)	Remuneration received by non-Indian citizen as employee of a foreign enterprise for services rendered in India, if: a) Foreign enterprise is not engaged in any trade or business in India b) His stay in India does not exceed in aggregate a period of 90 days in such previous year c) Such remuneration is not liable to deducted from the income of employer chargeable under this Act	Entire Amount	Individual - Salaried Employee (not being a citizen of India)
8.	10(6)(viii)	Salary received by a non-resident, for services rendered in connection with his employment on a foreign ship if his total stay in India does not exceed 90 days in the previous year.	Entire Amount	Non-resident Individual - Salaried Employee (not being a citizen of India)
9.	10(6)(xi)	Remuneration received by an Individual, who is not a citizen of India, as an employee of the Government of a foreign state during his stay in India in connection with his training in any Government Office/Statutory Undertaking, etc.	Entire Amount	Individual - Salaried Employee (not being a citizen of India)
10.	10(7)	Foreign allowances or perquisites paid or allowed by Government to its employees posted outside India	Entire Amount	Individual- Salaried Employee (being a citizen of India)
11.	10(8)	Foreign income and remuneration received from Foreign Government in connection with any co-operative technical assistance programme and projects in accordance with agreement entered into by Central Government and Foreign Government (Subject to certain conditions). Note: Provisions of this section are applicable w.e.f. Assessment Year 2023-24	Entire Amount	Individual
12.	10(8A)	Foreign income and remuneration received by consultant (agreement relating to his engagement must be approved) out of funds made available to an international organization (agency) under a technical assistance grant agreement between that agency and the Government of a foreign State (Subject to certain conditions). Note: Provisions of this section are applicable w.e.f. Assessment Year 2023-24	Entire Amount	Individual, being a: a) A non-resident engaged by the agency for rendering technical services in India; b) Non-Indian citizen; or c) Indian citizen who is not ordinarily resident in India
13.	10(8B)	Foreign income and remuneration received by an employee off the consultant as referred to in Section 10(8A) (contract of service must be approved by the prescribed authority before commencement of service). Note: Provisions of this section are applicable w.e.f. Assessment Year 2023-24	Entire Amount	Individual, being a: a) Non-Indian citizen; or b) Indian citizen who is not ordinarily resident in India
14.	10(9)	Income of any member of family of any individual [referred to in section 10(8), 10(8A) or 10(8B)] which accrues or arises outside India and is not deemed to accrue or arise in India and which is subject to tax in that foreign country Note: Provisions of this section are applicable w.e.f. Assessment Year 2023-24	Entire Amount	Individual
15.	10(10)	Death-cum-Retirement Gratuity received by: (i) Government employees	Entire Amount	Individual - Salaried Employee
		(ii) Other employees who are covered under Gratuity Act, 1972	Least of following amount is exempt from tax: 1. (15/26) X Last drawn salary* X completed year of service or part thereof in excess of 6 months. 2. Rs. 20,00,000# 3. Gratuity actually received. 7 days in case of employee of seasonal establishment. * Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite
		(iii) Other employees who are not covered under Gratuity Act, 1972	Least of following amount is exempt from tax: 1. 1/2 X Average Salary* X Completed years of service 2. Rs. 20,00,000 3. Gratuity actually received. Average salary = Average Salary of last 10 months immediately preceding the month of retirement *Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
16.	10(10A)	Commuted value of pension received by: a) Government employee	Entire Amount	Individual - Salaried Employee
		b) Other employees	1. 1/3^rd of full value of commuted pension, if gratuity is received by the employee 2. 1/2 of full value of commuted pension, if gratuity is not received by the employee	Individual - Salaried Employee
18.	10(10AA)	Encashment of unutilized earned leave at the time of retirement by: a) Government employee;	Entire Amount	Individual - Salaried Employee
		b) Other employees	Least of the following shall be exempt from tax: a) Amount actually received b) Unutilized earned leave* X Average monthly salary c) 10 months Average Salary** d) Rs. 25,00,000 While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer Average salary = Average Salary of last 10 months immediately preceding the retirement *Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission	Individual - Salaried Employee
19.	10(10B)	Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947. (Subject to certain conditions)	Least of the following shall be exempt from tax: a) An amount calculated as per section 25F(b) of the Industrial Disputes Act, 1947; b) Rs. 5,00,000; or c) Amount actually received.	Individual - Salaried Workmen
20.	10(10BC)	Compensation received for any disaster from Government/ Local Authority (Subject to certain conditions)	Entire amount except for the amount allowed as deduction under this Act on account of loss caused by such disaster.	Individual or his Legal heir
21.	10(10C)	Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions).	Least of the following is exempt from tax: 1) Actual amount received as per the guidelines i.e. least of the following a) 3 months salary for each completed year of services b) Salary at the time of retirement X No. of months of services left for retirement; or 2) Rs. 5,00,000	Individual - Salaried Employee
22.	10(10CC)	Tax paid by the employer on perquisites (not provided for by way of monetary payments) given to employee	Entire Amount	Individual - Salaried Employee
23.	10(10D)	Any sum received under a Life Insurance Policy including bonus (excluding Keyman Insurance Policy) (Subject to certain conditions)	Entire Amount	Any Assessee
24.	10(11)	Payment from Public Provident Fund or Statutory Provident Fund	Exempt Subject to certain conditions	Individual and HUF
24A.	10(11A)	Any payment from an account, opened in accordance with the Sukanya Samriddhi Account Rules, 2014	Entire amount (including interest accrued on the deposit made in such account) shall be exempt from tax	Individual (who deposited the amount in accordance with Sukanya Samriddhi Account Rules, 2014)
25.	10(12)	Accumulated balance payable to employee participating in recognized PF (subject to certain conditions).	To the extent provided in Rule 8 of Part A of the Fourth Schedule of the Income-Tax Act.	Individual - Salaried Employee
25A	10(12A)	Sum received from the National Pension System Trust by an assessee on account of closure or opting out of the pension scheme referred to in section 80CCD.	Exempt up to 60% of amount due at the time of closure or opting out of the scheme.	Assessee
25B	10(12B)	Partial withdrawal from National Pension System Trust (section 80CCD)	Exempt up to 25% of amount of contributions made by the employee	Employee
26.	10(13)	Payment from Approved Superannuation Fund on death or retirement of employee, etc. (Subject to certain conditions) W.e.f assessment year 2017-18, any amount transferred from superannuation fund to the notified pension scheme referred to in Section 80CCD shall also be exempt from tax.	Exempt subject to certain limits	Individual - Salaried Employee
27.	10(13A)	House Rent Allowance	Least of the following is exempt from tax: (i) 50% of salary* for metro cities** and 40% of salary for other cities (ii) Actual HRA received (iii) Excess of rent paid over 10% of salary* * Salary = Aggregate of basic salary, DA (to the extent it forms part of retirement benefits) and turnover based commission ** Delhi, Mumbai, Kolkata, Chennai	Individual - Salaried Employee
28.	10(14)	Prescribed allowances for performance of official duties.	To the extent allowance actually incurred for the performance of official duties.	Individual - Salaried Employee
29.	10(15)(iib)	Interest on Notified Capital Investment Bonds notified prior to 01-06-2002.	Interest Amount	Individual and HUF
	10(15)(iic)	Interest on notified Relief Bonds.	Interest Amount	Individual and HUF
	10(15)(iid)	Interest on notified bonds (notified prior to 01-06-2002) purchased in foreign exchange (subject to certain conditions)	Interest Amount	Individual, being a: a) NRI or nominee or survivor of NRI; b) Individual to whom bonds have been gifted by NRI.
	10(15)(iv)(fa)	Interest payable by scheduled bank on deposits in foreign currency where acceptance of such deposits by the bank is duly approved by RBI.	Interest Amount	a) Non-resident b) Individual or HUF being a resident but not ordinary resident
	10(15)(iv)(i)	Interest received from Government on deposits in notified scheme out of moneys due on account of retirement.	Interest Amount	Individual, being an employee of Central and State Government or Public Sector Company.
	10(15)(viii)	Interest on deposits made on or after 01.04.2005 is an offshore banking unit referred to in Section 2(u) of the Special Economic Zones Act, 2005.	Interest Amount	Person who is a non-resident or not ordinarily resident.
30.	10(16)	Scholarships granted to meet the cost of education.	Entire Amount	Individual
31.	10(17)(i)	Daily Allowances received by members of Parliament.	Entire Amount	Individual - Member of Parliament or State Legislature or any Committee thereof.
	10(17)(ii)	Any Allowance received by MP under Member of Parliament (Constituency Allowance) Rules, 1986.	Entire Amount	Individual - Member of Parliament
	10(17)(iii)	Any Constituency Allowance received.	Entire Amount	Individual - Member of State Legislature
32.	10(18)	Pension received by an individual who has won specified/notified gallantry awards and family pension received by any family member of such individual	Entire Amount	Individual - Central or State Government Employees or his family member
33.	10(19)	Family pension received by the widow, children or nominated heirs of a member of the armed forces (including paramilitary forces) where death of such member has occurred in the course of operational duties (subject to prescribed conditions and circumstances)	Entire Amount	Individual - Widow or children or nominated heirs of members of the armed forces.
34.	10(19A)	Notional annual value of any one palace occupied by former Ruler.	Entire amount	Individual
34A	10(23FBB)	Any income received by a unit holder from an investment fund [being of the same nature as income chargeable under the head PGBP]	That proportion of distributed income which is of the same nature as income chargeable under the head PGBP.	Unit holder of an investment fund specified under Section 115UB
34B	10(23FD)	Any income received by a unit holder from business trust, not being that proportion of the income of business trust which is in the nature of: a) interest received or receivable from a SPV; or b) any income from renting or leasing or letting out any real estate asset owned directly by such business trust (REIT)	Any income (except interest received from a SPV or any rental income) distributed by business trust to its unit holders	Unit holder of a business trust.
35.	10(26)	Specified income of a member of Specified Scheduled Tribes residing in Specified Areas.	Entire Amount	Individual being a member of Scheduled Tribe
36.	10(26AAA)	Income from any source in the State of Sikkim or income by way of dividend or interest on securities (Subject to certain conditions).	Entire Amount	Individual, being a Sikkimese (other than Sikkimese Woman who, after 31-03-2008, marries non-Sikkimese)
37.	10(32)	Income of minor child clubbed under Section 64(1A) with parent’s income.	Rs. 1,500 per child or Income of Minor, whichever is lower	Individual
38.	10(37)	Capital gains arising on compulsory acquisition of urban agriculture land, if: a) Compensation is received after 31-03-2004; and b) Agriculture land was used by taxpayer or his parents for agricultural purpose during last two years (Subject to certain conditions)	Entire Amount of capital gains	Individual and HUF
38A	10(37A)	Capital Gains arising on transfer of land under Land Pooling Scheme under the Andhra Pradesh Capital City Land Pooling Scheme (Formulation and Implementation) Rules, 2015.	Entire amount of capital gains	Individual and HUF
39.	10(43)	Amount received by an Individual as a loan under reverse mortgage scheme referred to in Section 47(xvi)	Entire Amount	Individual

*For detailed conditions refer Income Tax Act, 1961

# The Govt. has increased amount of gratuity payable to an employee under the payment of Gratuity Act, 1972, from Rs. 10 lakh to Rs. 20 lakh vide Notification No. 50/420(E), dated 29-3-2018

C. Deductions allowable from Taxable Income to Individual/ HUF

S.N.	Section	Particulars	Limit of exemption	Available to
I. Deduction from Salaries
1.	16(ia)	Standard Deduction	In case of normal tax regime • Rs. 50,000 or the amount of the salary whichever is fess In case of new tax regime under section 115BAC • Rs. 75,000 or the amount of the salary whichever is fess	Individual - Salaried Employee & Pensioners
2.	16 (ii)	Entertainment Allowance	Least of the following is exempt from tax: a) Rs 5,000 b) 1/5th of salary (excluding any allowance, benefits or other perquisite) c) Actual entertainment allowance received	Individual - Government Employee & Pensioners
3.	16 (iii)	Employment Tax/Professional Tax.	Amount actually paid during the year	Individual - Salaried Employee
4.	-	Lump-sum payment made gratuitously or by way of compensation or otherwise to widow or other legal heirs of an employee who dies while still in active service [Circular No. 573, dated 21-08-1990]	Enter amount paid in lump-sum	Individual - Widow or other legal heirs of employee.
5.	-	Ex-gratia payment to a person (or legal heirs) by Central or State Government, Local Authority or Public Sector Undertaking consequent upon injury to the person or death of family member while on duty [Circular No. 776, dated 08-06-1999]	Enter amount paid as ex-gratia	Individual or legal heirs.
6.	89	Any portion of salary received in arrears or in advance or profit received in lieu of salary [Subject to certain conditions and circumstances]	Relief to the extent computed in accordance with Section 89	Individual - Salaried Employee
7.	89A	Relief from taxation in income from retirement benefit account maintained in a notified country	Relief to the extent computed in accordance with Rule 21AAA	Individual
8.		Allowances (Subject to certain conditions and circumstances)	Various allowances allowed to an employee are exempt from to tax up to certain limit. Refer the document of ‘Allowance available for different category of taxpayers’	Individual - Salaried Employee
II. Income from Business and Profession
1.	44AD	Computation of income from eligible business on presumptive basis under Section 44AD provided turnover of eligible business does not exceed Rs. 2 crore (Subject to certain conditions). Note: (1) If an assessee opts out of the presumptive taxation scheme, after a specified period, he cannot choose to revert back to the presumptive taxation scheme for a period of five assessment years thereafter. [Section 44AD(4)] (2) The turnover limit of Rs. 2 crores shall be increased to Rs. 3 crores if the amount or aggregate of the amount of cash received during the previous year does not exceed 5% of the total turnover or gross receipts of such year. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash.	Presumptive income of eligible business shall be 8 % of gross receipt or total turnover. Note: Presumptive income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system or any other electronic mode as may be notified.	Resident Individual, Resident HUF or Resident Partnership Firm (Other than LLP)
2.	44ADA	Computation of income from specified profession on presumptive basis if the total gross receipts from such profession do not exceed fifty lakh rupees in a previous year. Note: if the amount of cash received during the previous year does not exceed 5% of the total gross receipt of such year then the threshold limit for total gross receipt shall be taken as Rs. 75 lakh instead of Rs. 50 lakh. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.	Presumptive income of such profession shall be 50% of total gross receipt.	Resident Assessee being individual or partnership firm (other than LLP)
III. Deductions from Capital Gains
1.	54	Investment of long-term capital gains, arising from sale of residential house or land appurtenant thereto, in purchase/construction of one/two new residential house (Subject to certain conditions and limits). Note: With effect from Assessment Year 2020-21, a taxpayer has an option to make investment in two residential house properties in India. This option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. 2 crores.	Amount invested new house/houses or capital gain, whichever is lower.	Individual and HUF
2.	54B	Investment of capital gains, arising from transfer of land used for agricultural purposes by an individual or his parents or a HUF, in other agricultural land (Subject to certain conditions and limits).	Amount invested in agricultural land or capital gains, whichever is lower.	Individual and HUF
3.	54F	Investment of long-term capital gains, arising from transfer of any long term asset other than a residential house property, in one new residential house property, provided that on the date of transfer the assessee should not own more than one residential house property (Subject to certain conditions and limits).	Amount invested in one new asset X capital gains/Net Consideration	Individual and HUF
4.	54GB	Investment of long-term capital gains arising from transfer of long-term capital asset, being a residential property, for subscribing the equity shares of an eligible company and such company has, within one year from the date of subscription, utilized this amount for purchase of specified new asset (subject to certain conditions and limits). Note: 1. W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company. 2. Provisions of this section shall not apply to any transfer of residential property made after March 31, 2017. However, in case of an investment in eligible start-up, the residential property can be transferred up to March 31, 2021.	Amount invested in new asset by eligible Co. X Capital gains/Net Consideration	Individual and HUF
IV. Deductions from Income from Other Sources
1.	56(2)(x)	Any sum of money or immovable property or movable property received on or after April 1, 2017 without consideration or for inadequate consideration*** from a relative or member of HUF (subject to certain conditions and circumstances). Note : 1. In case of immovable property, 'inadequate consideration' shall mean difference between stamp duty value and actual consideration, if it exceeds Rs. 50,000 or amount equal to 10% of consideration, whichever is higher. 2. Any sum of money received by an individual, from any person, in respect of any expenditure actually incurred by him on his medical treatment or treatment of any member of his family in respect of any illness related to COVID-19, shall not be considered as income of such person. (subject to certain conditions) 3. Any sum of money received by family member of a person who died due to COVID-19, the money so received shall not be considered as income of the family member where such money is received from the employer of deceased person. Where the money is received from any other person or persons, the exemption amount shall be limited to Rs. 10 lakh in aggregate. (subject to certain conditions	The whole amount received from specified relatives or in specified circumstances shall not be included in taxable income.	Any person
V. General-Deductions related to certain payments
1.	80C	1. Life insurance premium for policy: a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee b) in case of HUF, on life of any member of the HUF 2. Sum paid under a contract for a deferred annuity: a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity) b) in case of HUF, on life of any member of the HUF 3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary] 4. Contributions by an individual made under Employees’ Provident Fund Scheme 5. Contribution to Public Provident Fund Account in the name of: a) in case of individual, such individual or his spouse or any child of such individual b) in case of HUF, in the name of any member there of 6. Contribution by an employee to a recognized provident fund 7. Contribution by an employee to an approved superannuation fund 8. Subscription to any notified security or notified deposit scheme of the Central Government. For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian. 9. Subscription to notified savings certificates [National Savings Certificates (VIII Issue)] 10. Contribution for participation in unit-linked Insurance Plan of UTI: a) in case of an individual, in the name of the individual, his spouse or any child of such individual b) in case of a HUF, in the name of any member thereof 11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund: a) in the case of an individual, in the name of the individual, his spouse or any child of such individual b) in the case of a HUF, in the name of any member thereof 12. Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008] 13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children 14. Certain payments for purchase/construction of residential house property 15. Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both 16. Sum paid towards notified annuity plan of LIC or other insurer 17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005) 18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund) 19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions 20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above. 21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified. 22. Subscription to notified bonds issued by the NABARD. 23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions) 24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions) 25. Contribution to Tier-II NPS account by central Government's employees.	Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))	Individual and HUF
2.	80CCC	Contribution to certain specified Pension Funds of LIC/other insurer (Subject to certain conditions).	Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD)	Individual
3.	80CCD	Contribution to Pension Scheme (NPS) notified by the Central Government (Subject to certain conditions). Note:- 1. Deduction under section 80CCD(2) on account of contribution made by the employer to a pension scheme is not subject to ceiling limit of Rs. 1,50,000 as provided under section 80CCE. 2. Addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under section 80CCD(1), i.e., limit of 10% of salary/gross total income 3. Any payment from NPS to an assessee because of closure or his opting out of the pension scheme is exempt to the extent of 60%. However, with effect from the assessment year 2017-18, the whole amount received by the nominee from NPS on death of the assessee shall be exempt from tax. 4. Any partial withdrawal from NPS shall be exempt to the extent of 25% of amount of contributions made by the employee.	Amount contributed to pension scheme or 10% of salary/gross total income, whichever is less (subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE) shall be allowed as deduction under section 80CCD(1). Additional deduction to the extent of Rs. 50,000 shall also be available to the assessee under section 80CCD(1B). The additional deduction is not subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE. Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 14% of salary in case of central/state Govt. employees and 10%* in any other employees. 10% of salary in case of employees otherwise 20% of gross total income. *14% in case income of assessee is chargeable to tax under section 115BAC	Individual
4.	80CCG	Amount invested by specified resident individuals in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions). Note: No deduction shall be allowed under this Section from Assessment Year 2018-19. However, an assessee who has claimed deduction under this Section earlier shall be allowed deduction till assessment year 2019-20.	Deduction of 50% of total investment subject to maximum of Rs. 25,000 is allowed for 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired	Specified Resident Individual
5.	80D	Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person. An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up. specified person means: - In case of Individual - self, spouse, dependent children or parents - In case of HUF - Any member thereof Note: 1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000. 2. Payment on account of preventive health check-up may be made in cash. 3. Within overall limit, deduction shall also be allowed up to Rs. 50,000 towards medical expenditure incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person. 4. 'Senior citizen' means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.	In case of Individual, amount paid: a) For self, spouse and dependent children: Up to Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen) b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 50,000 if parent is a senior citizen) In case of HUF, up to Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen).	Individual/HUF
6.	80DD	a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (Subject to certain conditions).	Rs. 75,000 (Rs. 1,25,000 in case of severe disability) Note: "dependant" means— (i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them; (ii) in the case of a HUF, any member thereof, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year.	Resident Individual and HUF
7.	80DDB	Expenses actually paid for medical treatment of specified diseases and ailments for: a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters b) In case of HUF: Any member of the family who is wholly dependent upon the family (Subject to certain conditions).	Up to Rs. 40,000 (Rs. 100,000 in case of senior citizen) With effect from assessment year 2016-17, the prescription for medical treatment may be obtained from any specialist doctor not necessarily from a doctor working in Government hospital only.	Resident Individual and HUF
8.	80E	Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education (Subject to certain conditions).	The amount of interest paid during initial year and 7 immediately succeeding assessment years (or until the above interest is paid in full).	Individual
9.	80EE	Interest payable on loan taken up to Rs. 35 lakhs by taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value doesn't exceed Rs. 50 lakhs. Note: 1. On the date of sanction of loan, taxpayer should not own any other residential house property.	Deduction of up to Rs. 50,000 towards interest on loan.	Individual
9A.	80EEA	Interest payable on loan taken by an individual, who is not eligible to claim deduction under section 80EE, from any financial institution during the period beginning from 01/04/2019 ending on 31/03/2022 for the purpose of acquisition of a residential house property whose stamp duty value doesn’t exceed Rs. 45 lakhs	Deduction of up to Rs. 1,50,000 towards interest on loan	Individual
9B.	80EEB	Interest payable on loan taken by an individual from any financial institution during the period beginning from 01/04/2019 and ending on 31/03/2023 to purchase an electric vehicle.	Deduction of up to Rs. 1,50,000 towards interest on loan	Individual
10.	80GG	Rent paid for furnished/unfurnished residential accommodation (Subject to certain conditions)	Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income; b) 25% of the Total Income; or c) Rs. 5,000 per month. Total Income = Gross total income minus* long term capital gains, short-term capital gains under section 111A, deductions under sections 80C to 80U (other than 80GG) and income under section 115A	Individual not receiving HRA
11.	80QQB	Royalty income of authors of certain specified category of books other than text books	Least of the following shall be exempt from tax: a) In case of Lump sum payment - Amount of royalty income subject to maximum of Rs. 3,00,000 b) In other cases — amount of such income subject to maximum of 15% of value of books sold during the previous year.	Resident Individual — Authors
12.	80RRB	Royalty in respect of patents registered on or after 01.04.2003 (subject to certain conditions)	100% of royalty subject to maximum of Rs. 3,00,000	Resident Individual-Patentee
13.	80TTA	Interest on deposits in saving account with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)	100% of amount of such income subject to maximum of Rs. 10,000	Individual and HUF (Other than Resident Senior Citizen)
14.	80TTB	Interest on deposits with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)	100% of the amount of such income subject to the maximum amount of Rs. 50,000	Any senior citizen
15.	80U	A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]	Rs. 75,000 (Rs. 1,25,000 in case of severe disability)	Resident Individual

D. Tax Deducted at Source and Advance Tax

S.N.	Section	Particulars	Nature of exemption	Available to
1.	194C	Lower rate of TDS under Section 194C in case of payments to a contractor or sub-contractor Tax is required to be deducted only if sum paid exceeds Rs. 30,000 or aggregate of sum paid during the financial year exceeds Rs. 1,00,000.	Deduction of tax at source at 1% if recipient is an Individual or HUF	Individual or HUF
1A.	193	No TDS from interest paid on 4.25% National Defence Bonds, 1972, 4.25% National Defence Loan, 1968, or 4.75% National Defence Loan, 1972, Government Securities [Other than 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security]	No TDS from interest	Resident Individual
2.	193	No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque.	No TDS if interest during the financial year does not exceed Rs. 5,000	Resident Individual or HUF
2A.	194	No TDS from dividend paid by any mode other than cash to resident persons.	No TDS if amount paid or payable during the financial year does not exceed Rs. 5,000.	Resident Individual
2B	194A	No TDS from interest paid or payable on time deposit: a) Up to Rs. 50,000 in case of resident senior citizen b) Up to Rs. 40,000 in case of other assesse	If payer is a banking company, co-operative bank or post office	Resident Individual or HUF
2C.	194-O	No TDS from payment to participants of e-commerce	No TDS if amount paid or payable during the financial year does not exceed Rs. 5 Lakhs	Resident Individual or HUF
2D.	194Q	No TDS from payment made to resident seller	If amount paid or payable to resident seller for purchase of goods during the Financial Year if aggregate value of goods doesn’t exceed Rs. 50 lakhs	Resident Individual or HUF
2E.	194R	No TDS in case any benefit or perquisite is provided to a resident	If aggregate value of benefit/perquisite provided during the Financial Year doesn’t exceed Rs. 20,000	Resident Individual or HUF
2F.	194S	No TDS from payment on transfer of Virtual Digital Asset	No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.	Resident Individual or HUF
2G.	194T	No TDS on payment made to partners of firms	If sum or aggregate of sum paid/payable during the Financial Year doesn’t exceed Rs. 20,000	Individual
2G.	-	No TDS from payment made to seller	No TDS if amount paid or payable to resident seller for purchase of goods during the Financial Year if aggregate value of goods doesn’t exceed Rs. 50 lakhs	Resident individual or HUF
3.	-	No obligation to deduct tax at source under Section 194A, 194C, 194H, 194-I and 194J if an Individual or HUF carries on a business or profession and total sales, turnover or gross receipts from such business or profession does not exceed, Rs. 1 crore in case of business and Rs. 50 lakhs in case of profession, during the financial year immediately preceding the financial year in which sum is to be credited or paid.	Not liable to deduct tax at source	Individual or HUF
4.	197A(1)	No deduction of tax shall be made under Sections 194 and 194EE, if resident individual furnishes to the payer a written declaration in prescribed form that tax on his estimated total income of the previous year will be nil.	No tax shall be deducted from specified payments if the sum paid does not exceed the maximum amount which is not chargeable to tax	Resident Individual
5.	197A(1C)	No deduction of tax shall be made under section 192A, 193, 194, 194A, 194D, 194DA, 194EE, 194-I and 194K if resident senior citizen furnishes to the payer a written declaration in prescribed form that tax on his estimated total income of the previous year will be nil.	No tax shall be deducted from specified payments	Resident Individual — Senior Citizen and Super Senior Citizen
6.	207(2)	Exemption from payment of advance tax by a resident senior citizen or resident super senior citizen not having any income from business or profession (who is at least 60 Years of age at any time during the previous year)	Not liable to pay advance tax	Resident Senior Citizen and Resident Super Senior Citizen
7.	44AD	Assessee who has opted for presumptive taxation scheme under Section 44AD	No need to pay advance tax in installments. Assessee can pay whole amount in one installment on or before 15^thMarch of the financial year	Resident individual, Resident HUF or Resident Partnership Firm (Other than LLP)
8.	44ADA	Assessee who has opted for presumptive taxation scheme under section 44ADA	No need to pay advance tax in installments. Assessee can pay whole amount in one installment on or before 15th March of the financial year	Resident assessee being individual or partnership firm (other than LLP) who is engaged in a profession referred to in section 44AA(1)

E. Exemption from return filing

S.N.

Section

Particulars

Nature of exemption

Available to

194P

A senior citizen is not liable to furnish the return of income for the previous year in which tax has been deducted under section 194P

No requirement to file return of income by senior citizen if:

c) His total income consists only income in the nature of pension and interest received or receivable from any account maintained with deductor (such bank); and

d) Tax on such income is deducted by deductor on the basis of rates in force.

Resident Senior citizens (whose age is 75 years or more)

[As amended by Finance (No. 2) Act, 2024]

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Income Tax Benefits Available Exclusively to Resident Persons and Indian Companies
- For AY 2025-26

[AY 2025-26]

S.No.	Section	Particulars	Limit of exemption	Available to
A.	Business or Profession
1.	35D	Amortization of certain preliminary expenses (Subject to maximum of 5% of cost of the project or capital employed, whichever is more) Incurred before commencement of business or after commencement of business in connection with extension of an undertaking (Subject to certain conditions and nature of expenditures)	Qualifying preliminary expenditure is allowable in each of 5 successive years beginning with the previous year in which the extension of undertaking is completed or the new unit commences production or operation.	Indian Company
2.	35D	Amortization of certain preliminary expenses (Subject to maximum of 5% of cost of the project) Incurred before commencement of business or after commencement of business in connection with extension of an undertaking (Subject to certain conditions and nature of expenditures)	Qualifying preliminary expenditure is allowable in each of 5 successive years beginning with the previous year in which the extension of undertaking is completed or the new unit commences production or operation.	Resident Non-corporate assessees
3.	35DD	Amortization of expenditure incurred in connection with amalgamation or demerger on or after 01.04.1999 (Subject to certain conditions)	Allowed as deduction in 5 successive years in equal installments, beginning with the previous year in which such amalgamation or demerger takes place.	Indian Company
4.	35E	Deduction for qualifying expenditure incurred wholly and exclusively on prospecting, for certain minerals or development of a mine, etc. (Subject to certain conditions)	Qualifying expenditure is allowed as deduction in equal installments over a period of 10 years.	Indian Company and Resident Non-Corporate Assessees engaged in prospecting for minerals, etc.
5.	44AD	Computation of income from eligible business on presumptive basis under Section 44AD (Subject to certain conditions).	• Presumptive income of eligible business shall be 8 % of gross receipt or total turnover (if turnover or gross receipt of eligible business does not exceed Rs. 2 crore). • Presumptive income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system or through such electronic mode as may he prescribed. Note: If the amount of cash received during the previous year does not exceed 5% of the total turnover or gross receipt of such year then the threshold limit for total turnover or gross receipt shall be taken as Rs. 3,00,00,000 instead of Rs. 2,00,00,000.	Resident Individual, Resident HUF or Resident Partnership Firm (Other than LLP)
6.	44ADA	Computation of income from profession on presumptive basis under section 44ADA (Subject to certain conditions).	Presumptive income of profession shall be 50% of gross receipt (if gross receipt of assessee does not exceed Rs. 50 lakh. Note:If the amount of cash received during the previous year does not exceed 5% of the total gross receipt of such year then the threshold limit for total gross receipt shall be taken as Rs. 75,00,000 instead of Rs. 50,00,000.).	Resident person being individual or partnership firm (other than LLP) who is engaged in a profession referred to in section 44AA(1)
7.	115BA	Concessional rate of tax for domestic company if – (i) Such company has been set-up and registered on or after March 1, 2016; and (ii) It is engaged in business of manufacturing or production of any article or thing (Subject to certain other conditions)	Income shall, at the option of such company, be computed at concessional tax rate of 25%.	Indian manufacturing Company
8.	115BAA	Concessional rate of tax for domestic company if total income of the company is computed without providing for specified deductions or exemptions	Income shall, at the option of such company, be computed at concessional tax rate of 22%.	Indian Company
9.	115BAB	Concessional rate of tax for domestic manufacturing company if: a) Such Co. incorporated on or after 01-10-2019; b) It should commence the manufacturing or production of an article or thing on or after 01-10-2019 but before 31-03-2024; c) It must be engaged in the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it; or generation of electricity; d) The total income of the company is computed without providing for specified deductions or exemptions (Subject to certain other conditions)	Income shall, at the option of such company, be computed at concessional tax rate of 15%.	Indian manufacturing Company
10.	115BAD	Concessional rate of tax for resident co-operative society if total income of the co-operative society is computed without providing for specified deductions or exemptions	Income shall, at the option of such co-operative society, be computed at concessional tax rate of 22%.	Resident Co-operative Society
11.	115BAE	Concessional rate of tax for resident co-operative society registered on or after April 01, 2023 and commenced manufacturing or production of an article or thing on or before March 31, 2024, if total income of the co-operative society is computed without providing for specified deductions or exemptions	Income shall, at the option of such co-operative society, be computed at concessional tax rate of 15%.	Resident Co-operative Society
12	115BBG	Income from transfer of carbon credits	10% of such income	Any person
B.	Capital Gain
1.	47(iv)	Transfer of capital asset by a parent company to its wholly owned Indian subsidiary company shall not be treated as ‘transfer’.	No capital gains shall arise in the hands of holding company due to transfer of capital assets.	Transferee should be an Indian Company
2.	47(v)	Transfer of capital asset by a wholly owned subsidiary company to its Indian holding company shall not be treated as ‘transfer’ (Subject to certain conditions).	No capital gains shall arise in the hands of subsidiary company due to transfer of capital assets.	Transferee should be an Indian Company
3.	47(vi)	Transfer of capital asset in a scheme of amalgamation by amalgamating company to Indian amalgamated company shall not be treated as ‘transfer’.	No capital gains shall arise in the hands of amalgamating company due to transfer of capital assets.	Transferee should be an Indian Company
4.	47(vib)	Transfer of capital asset in a scheme of merger by demerged company to Indian resulting company shall not be treated as ‘transfer’ (Subject to certain conditions).	No capital gains shall arise in the hands of demerged company due to transfer of capital assets.	Transferee should be an Indian Company
5.	47(vii)	Allotment of shares of Indian amalgamated company to the shareholders in the amalgamating company in lieu of their amalgamation shall not be treated as ‘transfer’ (Subject to certain conditions).	No capital gains shall arise in the hands of shareholders in the amalgamating company due to such amalgamation.	Amalgamated company should be an Indian Company
6.	47(viic)	Redemption of Sovereign Gold Bonds issued by RBI under Sovereign Gold Bond Scheme, 2015.	It shall not be treated as transfer.	Resident individual
6A.	47(viid)	Conversion of Gold into Electronic Gold Receipt issued by a Vault Manager, or Conversion of Electronic Gold Receipt into Gold shall not be treated as 'transfer'.	No capital gains in hands of person transferring gold/EGR	Any Person
6B.	47(xa)	Conversion of bonds referred to in 115AC(1)(a) into equity shares or debentures of any company shall not be treated as 'transfer'.	It shall not be treated as transfer	Any person
6C.	47(xx)	Transfer of the interest in a Joint Venture in exchange for shares in a foreign company shall not be treated as ‘transfer’.	No capital gains	Interest is held by a public sector company
7.	111A	Adjustment of unutilized portion of maximum exemption limit from short-term capital arising from transfer of equity shares or units of equity oriented funds or unit of a business trust and tax on balance short-term capital gains at : • 15% (if transfer takes place before 23-07-2024) • 20% (if transfer takes place on or after 23-07-2024)	If total income as reduced by such short-term capital gains is below maximum exemption limit (short-fall), such short-term capital gains shall be reduced by such short-fall and tax on the balance of such capital gains shall be computed at: • 15% (if transfer takes place before 23-07-2024) • 20% (if transfer takes place on or after 23-07-2024)	Resident Individual and HUF
8.	112	Adjustment of unutilized portion of maximum exemption limit from long-term capital gain and tax on balance long-term capital gains at : • 15% (if transfer takes place before 23-07-2024) • 20% (if transfer takes place on or after 23-07-2024)	If total income as reduced by such long-term capital gains is below maximum exemption limit (short-fall), such long-term capital gains shall be reduced by such short-fall and tax on balance of such capital gains shall be computed at : • 15% (if transfer takes place before 23-07-2024) • 20% (if transfer takes place on or after 23-07-2024)	Resident Individual and HUF
8A.	112A	Adjustment of unutilized portion of maximum exemption limit from long-term capital gain covered under section 112A and tax on balance long-term capital gains at : • 10% (if transfer takes place before 23-07-2024) • 12.5% (if transfer takes place on or after 23-07-2024)	If total income as reduced by such long-term capital gains is below maximum exemption limit (short-fall), such long-term capital gains shall be reduced by such short-fall and tax on balance of such capital gains shall be computed at : • 10% (if transfer takes place before 23-07-2024) • 12.5% (if transfer takes place on or after 23-07-2024)	Resident Individual and HUF
9.	115ACA	Concessional rate of tax on long-term capital gains arising from transfer of GDRs issued by a listed Indian company, engaged in specified knowledge based industry or service, to its employees in accordance with notified ESOP Scheme. Provided such GDRs are purchased in foreign currency (Subject to certain conditions)	Such long-term capital gains shall be taxable at 10%/12.5%* without allowing benefits of first and second proviso to Section 48 * 10% if transfer takes place before 23-07-2024 and 12.5% if transfer takes place on or after 23-07-2024	Resident Individual - Employee
C.	Other Sources
1.	115ACA	Concessional rate of tax on dividends on GDRs issued by a listed Indian company, engaged in specified knowledge based industry or service, to its employees in accordance with notified ESOP Scheme. Provided such GDRs are purchased in foreign currency (Subject to certain conditions)	Such dividend shall be taxable at 10%	Resident Individual - Employee
D.	Deductions
1.	80C	Only resident individuals can Investment in Public provident Fund scheme, 1968 either in his own name or in the name of minor of whom he is a guardian.	Maximum deposit in PPF Rs. 1,50,000	Resident Individual
2.	80C	Investment in Senior Citizens Savings Scheme 2004 for 5 year	Max. deduction Rs. 1,50,000	Resident individual who is 60 years of age or by a resident individual who is 55-60 years of age and retired under VRS
3.	80D	Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person.An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up. specified person means: - In case of Individual - self, spouse, dependent children or parents - In case of HUF - Any member thereof Note: 1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000. 2. Payment on account of preventive health check-up may be made in cash. 3. Within overall limit, deduction shall be allowed up to Rs. 50,000 towards medical expenditure incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person. 4. 'Senior citizen' means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.	In case of Individual, amount paid: a) For self, spouse and dependent children: Up to Rs. 50,000 if specified person is a senior citizen b) For parents: additional deduction of Rs. 50,000 shall be allowed if parent is a senior citizen In case of HUF, up to Rs. 50,000 if specified person is a senior citizen	Resident Individual who is senior citizen
4.	80DD	Deduction allowed to resident Individual and HUF for: a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (Subject to certain conditions).	Rs. 75,000 (Rs. 1,25,000 in case of severe disability)	Resident Individual and HUF
5.	80DDB	Expenses actually paid by resident individual and HUF for medical treatment of specified diseases and ailments of: a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters b) In case of HUF: Any member of the family who is wholly dependent upon the family (Subject to certain conditions).	Up to Rs. 40,000 (Rs. 1,00,000 in case of senior citizen)	Resident Individual/ HUF
6.	80GGB	Sum contributed to political party or electoral trust is allowed as deduction (Subject to certain conditions)	100% of amount contributed (excluding contribution in cash) is allowed as deduction	Indian company
7.	80JJAA	Deduction of additional employee cost in respect of employment of new employees. Additional employee cost means total emoluments paid or payable to additional employees employed during the previous year. (Subject to certain other condition)	Deduction of 30% of additional employee cost. Deduction shall be allowed for first three Assessment Years including the Assessment Year relevant to previous year in which such employment is provided.	Assessee who is liable to tax audit under Section 44AB
8.	80PA	Producer company engaged in an eligible business of marketing, purchase or processing of agricultural produce of its members	100% of profits for a period of 5 years from the financial year 2018-19 subject to the condition that the total turnover of company shall be less than Rs. 100 crores during the financial year.	Producer Company
9.	80QQB	Royalty income of resident individual - authors of certain specified category of books other than text books	Least of the following shall be exempt from tax: a) In case of Lump sum payment - Amount of royalty income subject to maximum of Rs. 3,00,000 b) In other cases - amount of such income subject to maximum of 15% of value of books sold during the previous year.	Resident Individual Author
10.	80RRB	Royalty in respect of patents registered on or after 01.04.2003 (Subject to certain conditions)	100% of royalty subject to maximum of Rs. 3,00,000	Resident Individual
11.	80U	A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]	Rs. 75,000 (Rs. 1,25,000 in case of severe disability)	Resident Individual
12.	80-IA	Indian Company developing, maintaining and operating any infrastructure facility shall be entitled to claim deduction (Subject to certain conditions).	100% of profit for 10 consecutive AY falling within a period of 15 AY beginning with the AY in which assessee begins operating and maintaining infrastructure facility. No deduction shall be allowed to any enterprise which starts the development or operation and maintenance of the infrastructure facility on or after the 1st day of April, 2017.	Indian Company
13.	80-IA	Indian Company formed before 30-11-2005 with majority equity participation by public sector companies to reconstruct or revive a power generating plant shall be entitled to claim deduction. Provided it begins to generate or transmit or distribute power before 31-03-2011 (Subject to certain conditions).	100% of profit for 10 consecutive AY falling within a period of 15 AY beginning with the AY in which assessee begins operating and maintaining infrastructure facility.	Indian Company
14.	80-IAC	Profit and gains derived by an eligible start-up from specified business	100% of profit for 3 consecutive assessment years out of 10 years beginning from the year in which the eligible start-up is incorporated	Company and LLP
E.	TDS
1.	193	No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF	If amount paid or payable during the financial year does not exceed Rs. 5,000	Resident individual and HUF
2.	193	No TDS from interest on 8% Saving (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security paid to a resident persons	If amount paid or payable during the financial year does not exceed Rs. 10,000	Resident persons
3.	193	No TDS from interest on 6.5% Gold Bonds, 1977, or 7% Gold Bonds, 1980	If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year	Resident Individual
3A	193	No TDS from interest paid on 4.25% National Defence Bonds, 1972, 4.25% National Defence Loan, 1968, or 4.75% National Defence Loan, 1972	No TDS from interest	Resident Individual
3B	193	No TDS from payment of certain interest	No TDS from payment of interest on following securities: (a) National Development Bonds; (b) 7 Year National Savings Certifications (IV Issue); (c) Debentures issued by notified persons; (d) Any security of Central or State Government; (e) Any listed security issued by a company and held in DEMAT form; (f) Securities beneficially owned by LIC, GIC, specified companies or any other insurer.	Resident Persons
4.	194	No TDS from dividend paid by any mode other than cash to resident persons.	If amount paid or payable during the financial year does not exceed Rs. 5,000.	Resident person
5.	194A	No TDS from interest (other than on interest on securities) paid by a banking company, post office or co-operative bank on time deposits Note: With effect from 01.06.2015, tax shall be deducted from interest credited or paid by a co-operative bank to its member. However, interest paid or credited by a co-operative society to its member or to any other co-operative society shall not be subject to TDS.	If amount paid or payable during the financial year does not exceed Rs. 40,000 Note: a) In case of senior citizens, tax shall not be deducted if interest payment doesn’t exceeds Rs. 50,000 b) With effect from 01.06.2015, time deposit shall also include recurring deposit. Therefore, tax shall be deducted from payment of interest on recurring deposit if it exceeds the threshold limit of Rs. 40,000. c) The threshold limit of Rs. 40,000 shall be computed with reference to the income credited or paid by a banking company or co-operative society (and not by individual branch thereof) which has adopted core banking solutions ('CBS').	Resident persons
6.	194A	No TDS from interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004	If amount paid or payable during the financial year does not exceed Rs. 50,000	Resident persons
7.	194A	No TDS from interest other than on securities (in any other case)	If amount paid or payable during the financial year does not exceed Rs. 5,000	Resident persons
8.	194A	No TDS from interest on compensation awarded by Motor Accident Claims Tribunal	If amount paid during the financial year does not exceed Rs. 50,000 Note: With effect from 01.06.2015, no tax shall be deducted at the time of credit of interest on compensation awarded by the Motor Accidents Claims Tribunal.	Resident persons
9.	194A	No TDS from interest on zero coupon bonds issued by Infrastructure Capital Co., Infrastructure Capital Fund, Public Sector Co. or Scheduled bank	If Zero Coupon Bonds are issued on or after 01-06-2005 by specified entities	Resident persons
10.	194A	No TDS on Interest paid under any provision of Income-tax Act, 1961 or Wealth-tax Act, 1957	Entire interest is paid under the prescribed Acts	Resident persons
11.	194A	No TDS on Interest paid in respect of deposits under any notified scheme or Post Office deposits, Kisan Vikas Patra, NSC VIII Issue, Indira Vikas Patra, etc.	If interest is earned on the prescribed deposits	Resident persons
12.	194C	No TDS from sum paid or payable to contractor (Subject to certain conditions)	a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid or payable to contractor in aggregate does not exceed Rs. 1,00,000 during the financial year	Resident Contractor
13.	194C	No TDS from sum paid or payable to transport operator who is in the business of plying, hiring or leasing goods carriage	If transporter owns 10 or less goods carriages at any time during the financial year and he furnishes a declaration with his PAN to person responsible for making payment.	Resident transport operator
14.	194C	No TDS from payment made by an Individual or HUF to a resident contractor for exclusively personal purposes	If payment is made for personal purpose of Individual or HUF	Resident Contractor
15.	194K	No TDS from payment made: a) in respect of units of a Mutual Fund specified under section 10(23D); b) units from the administrator of the specified undertaking; or c) units from the specified company	If amount paid or payable during the financial year does not exceed Rs. 5,000	Resident persons
16.	197A(1)	No deduction of tax shall be made under Sections 194 and 194EE, if resident individual furnishes to the payer a written declaration in prescribed form that tax on his estimated total income of the previous year will be nil.	No tax shall be deducted from specified payments if the sum paid does not exceed the maximum amount which is not chargeable to tax	Resident Individual
17.	197A(1C)	No deduction of tax shall be made under Section 192A, Sections 193, 194, 194A, 194D, 194DA, 194-I, 194EE and 194K if resident senior citizen furnishes to the payer a written declaration in prescribed form that tax on his estimated total income of the previous year will be nil.	No tax shall be deducted from specified payments	Resident Individual - Senior Citizen and Super Senior Citizen
18.	194LA	No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land)	If amount paid or payable during the financial year does not exceed Rs. 2.5 Lakhs	Resident persons
19.	194D	No TDS from insurance commission paid or payable during the financial year	If amount paid or payable during the financial year does not exceed Rs. 15,000	Resident persons
20.	194DA	No TDS from sum payable under a life insurance policy (including bonus) to a resident person (w.e.f. 01-10-2014)	If amount paid or payable during financial year does not exceed Rs. 1 Lakh	Resident persons
21.	194H	No TDS from payment of commission or brokerage	If amount paid or payable during the financial year does not exceed Rs. 15,000. Further no tax to be deducted from commission payable by BSNL/MTNL to their PCO Franchisees.	Resident persons
22.	194J	No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration	If amount paid or payable during the financial year does not exceed Rs. 30,000	Resident persons
23.	194-I	No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery	If amount paid or payable during the financial year does not exceed Rs. 2,40,000 With effect from 01.06.2015, no tax shall be deducted where income by way of rent is credited or paid to a real estate investment trust in respect of any real estate asset [as referred to in section 10(23FCA)] owned directly by such trust.	Resident persons
24.	194-IA	No TDS from payment of consideration for purchase of an immovable property (other than agriculture land)	If consideration of immovable property and its stamp duty value doesn’t exceed Rs. 50,00,000	Resident Transferor
25	194-IB	No TDS from payment of rent in respect of any land or building. Note: Other than the rent covered by section 194-I	If amount of rent does not exceeds Rs. 50,000 for a month or part of a month during the financial year	Resident Individual or HUF
26	194-O	No TDS from payment to participants of e-commerce	If amount paid or payable during the financial year does not exceed Rs. 5 Lakhs	Resident Individual or HUF
27	194Q	No TDS from payment made to resident seller	If amount paid or payable to resident seller for purchase of goods during the Financial Year if aggregate value of goods doesn’t exceed Rs. 50 lakhs	Resident Individual or HUF
28	194R	No TDS in case any benefit or perquisite is provided to a resident	If aggregate value of benefit/perquisite provided during the Financial Year doesn’t exceed Rs. 20,000	Resident Individual or HUF
29	194S	No TDS from payment on transfer of Virtual Digital Asset	No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.	Resident Individual or HUF
F.	Advance Tax
1.	207(2)	Exemption from payment of advance tax by a resident senior citizen or resident super senior citizen not having any income from business or profession (who is at least 60 Years of age at any time during the previous year)	Not liable to pay advance tax	Resident Senior Citizen and Resident Super Senior Citizen
G.	Exemptions
1.	-	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year)	Rs. 3,00,000	Resident Senior Citizen
2.	-	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen (who is at least 80 Years of age at any time during the previous year)	Rs. 5,00,000	Resident Super Senior Citizen
3.	87A	Rebate to resident individual whose total income does not exceed Rs. 5,00,000	Rebate shall be limited to tax payable or Rs. 12,500, whichever is less	Resident Individual
4.	87A	A maximum rebate of Rs. 25,000 is allowed under section 87A from the amount of income tax on total income, which is chargeable to tax under section 115BAC(1A). However, this rebate is allowed if the total income of assessee chargeable to tax under section 115BAC(1A) is up to Rs. 7,00,000. Further, if the total income chargeable to tax under section 115BAC(1A) exceeds Rs. 7,00,000 and the tax payable on such income exceeds the difference between the total income and Rs. 7,00,000, he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount by which it exceeds Rs. 7,00,000	Rebate shall be limited to tax payable or Rs. 25,000, whichever is less	Resident Individual
H.	Tonnage Taxation
1.	115V to 115VZC (Tonnage Taxation)	Qualifying Company may opt for computation of income from business of operating qualifying ship on presumptive basis. * A company is a ‘Qualifying Company’ if: a) It is an Indian Company; b) The place of effective management of it is in India; c) It owns at least one qualifying ship; and d) The main object of it is to carry on business of operating ships.	The income from operating ships shall be computed on basis of tonnage of each qualifying ship.	Indian Company
I.	Exemption from return filing
1.	194P	A senior citizen is not liable to furnish the return of income for the previous year in which tax has been deducted under section 194P	No requirement to file return of income by senior citizen if: a) His total income consists only income in the nature of pension and interest received or receivable from any account maintained with deductor (such bank); and b) Tax on such income is deducted by deductor on the basis of rates in force.	Resident Senior citizens (whose age is 75 years or more)

* Public Sector Companies, Banking Companies and Insurance Companies have not been considered in the document.

[As amended by Finance (No. 2) Act, 2024]

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Various Threshold Limits under the Income Tax Act

[AY 2025-26]

S.N.	Particulars	Threshold Limits
A.	Basic Exemption
1.	Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person	Rs. 2,50,000
2.	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident senior citizen (who is at least 60 Years of age at any time during the previous year but less than 80 Years of age on the last day of the previous year)	Rs. 3,00,000
3.	Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen (who is at least 80 Years of age at any time during the previous year)	Rs. 5,00,000
3A.	Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person opted for section 115BAC	Rs. 3,00,000
3B.	Surcharge shall be charged at the rate of 10% of income-tax if net income is above Rs. 50 Lakh but it does not exceed Rs. 1 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)	Rs. 50 lakh
3C	Surcharge shall be charged at the rate of 15% of income-tax if net income is above Rs. 1 crore but it does not exceed Rs. 2 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)	Rs. 1 Crore
3D	Surcharge shall be charged at the rate of 25% of income-tax if net income is above Rs. 2 crore but it does not exceed Rs. 5 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)	Rs. 2 crore
3E	Surcharge shall be charged at the rate of 37% of income-tax if net income is above Rs. 5 crore in case of Individual, HUF, AOP, BOI, Artificial judicial person (Subject to Marginal relief)	Rs. 5 crore
4.	Surcharge shall be charged at the rate of 12% of income-tax if net income exceeds Rs. 1 Crore in case of Firms, Local Authorities (Subject to Marginal Relief)	Rs. 1 Crore
4A.	Surcharge shall be charged at the rate of 7% of income-tax if net income exceeds Rs. 1 Crore but doesn’t exceed Rs. 10 crore in case of co-operative society (Subject to Marginal Relief)	Rs. 1 Crore
4B.	Surcharge shall be charged at the rate of 12% of income-tax if net income exceeds Rs. 10 Crore in case of co-operative society (Subject to Marginal Relief)	Rs. 10 Crore
5.	Surcharge shall be charged at the rate of 7% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 12% if net income exceeds Rs. 10 Crores in case of domestic company (Subject to Marginal relief)	Rs. 1 Crore / Rs. 10 Crore
6.	Surcharge shall be charged at the rate of 2% of income-tax if net income exceeds Rs. 1 Crore and at the rate of 5% if net income exceeds Rs. 10 Crores in case of foreign company (Subject to Marginal relief)	Rs. 1 Crore / Rs. 10 Crore
7.	Tax rate of 25% in case of a domestic company where its total turnover or the gross receipt in the previous year 2022-23 does not exceed Rs. 400 crore	Rs. 400 Crore

S.N.	Particulars	Section	Threshold Limits (for exemptions and others)
B.	Under the head Salaries
1.	Entertainment Allowance (Exempt in case of Government employee only)	16(ii)	Least of the following is exempt from tax: a) Rs 5,000 b) 1/5th of salary (excluding any allowance, benefit or perquisite) c) Actual entertainment allowance received
2.	Encashment of unutilized earned leave at the time of retirement by an employee (other than Government employee)(Subject to certain conditions)	10(10AA)	Least of the following shall be exempt from tax: a) Amount actually received b) Unutilized earned leave X Average monthly salary c) 10 months Average Salary d) Rs. 25,00,000 While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer Average salary = Average Salary of last 10 months immediately preceding the retirement *Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
3.	Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947 (Subject to certain conditions).	10(10B)	Least of the following shall be exempt from tax: a) an amount calculated as per 25F(b) of the Industrial Disputes Act, 1947; b) Rs. 5,00,000; or c) Amount actually received.
4.	Death -cum-Retirement Gratuity received by other employees who are covered under Gratuity Act, 1972 (other than Government employee) (Subject to certain conditions).	10(10)	Least of following amount is exempt from tax: 1. (15/26) X Last drawn salary* X completed year of service or part thereof in excess of 6 months. 2. Rs. 20,00,000 3. Gratuity actually received. 7 days in case of employee of seasonal establishment. * Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite
5.	Death -cum-Retirement Gratuity received by other employees who are not covered under Gratuity Act, 1972 (other than Government employee)(Subject to certain conditions).	10(10)	Least of following amount is exempt from tax: 1. 1/2 X Average Salary* X Completed years of service 2. Rs. 20,00,000 3. Gratuity actually received. Average salary = Average Salary of last 10 months immediately preceding the month of retirement *Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission
6.	Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions	10(10C)	Least of the following is exempt from tax: 1) Actual amount received as per the guidelines i.e. least of the following (a) 3 months salary for each completed year of services (b) Salary at the time of retirement X No. of months of services left for retirement; or 2) Rs. 5,00,000
7.	Children Education Allowance	10(14) read with Rule 2BB	Up to Rs. 100 per month per child up to a maximum of 2 children.
8.	Hostel Expenditure Allowance	10(14) read with Rule 2BB	Up to Rs. 300 per month per child up to a maximum of 2 children.
9.	Transport Allowance granted to an employee to meet expenditure on commuting between place of residence and place of duty	10(14) read with Rule 2BB	Up to Rs. 3,200 per month for blind and handicapped employees
10.	Transport Allowance to an employee working in any transport business to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place provided employee is not in receipt of daily allowance.	Sec. 10(14) read with Rule 2BB	Amount of exemption shall be lower of following: a) 70% of such allowance; or b) Rs. 10,000 per month.
11.	Allowances to Retired Chairman/Members of UPSC (Subject to certain conditions)	10(45)	Up to Rs.14,000 per month for defraying the service of an orderly and for meeting expenses incurred to wards secretarial assistance an contract basis.
12.	Special compensatory Allowance (Hilly Areas) (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Amount exempt from tax varies from Rs. 300 to Rs. 7,000 per month.
13.	Border area, Remote Locality or Disturbed Area or Difficult Area Allowance (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Amount exempt from tax varies from Rs. 200 to Rs. 1,300 per month.
14.	Tribal area allowance in (a) Madhya Pradesh (b) Tamil Nadu (c) Uttar Pradesh (d) Karnataka (e) Tripura (f) Assam (g) West Bengal (h) Bihar (i) Odisha	Sec. 10(14) read with Rule 2BB	Up to Rs. 200 per month
15.	Compensatory Field Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Up to Rs. 2,600 per month
16.	Compensatory Modified Area Allowance. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Up to Rs. 1,000 per month
17.	Counter Insurgency Allowance granted to members of Armed Forces operating in areas away from their permanent locations. If this exemption is taken, employee cannot claim any exemption in respect of border area allowance (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Up to Rs. 3,900 per month
18.	Underground Allowance to employees working in uncongenial, unnatural climate in underground mines (Subject to certain conditions)	Sec. 10(14) read with Rule 2BB	Up to Rs. 800 per month
19.	High Altitude Allowance granted to armed forces operating in high altitude areas (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	a) Up to Rs. 1,060 per month (for altitude of 9,000 to 15,000 feet) b) Up to Rs. 1,600 per month (for altitude above 15,000 feet)
20.	Highly active field area allowance granted to members of armed forces (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Up to Rs. 4,200 per month
21.	Island Duty Allowance granted to members of armed forces in Andaman and Nicobar and Lakshadweep group of Island (Subject to certain conditions and locations)	Sec. 10(14) read with Rule 2BB	Up to Rs. 3,250 per month
22.	Standard Deduction to salaried taxpayers or pensioners	16(ia)	In case of normal tax regime • Up to Rs. 50,000 In case of new tax regime under section 115BAC • Up to Rs. 75,000
23.	Tax on contribution to an approved superannuation fund by the employer in respect of the employee	17(2)(vii)	To the extent it exceeds Rs.1,50,000 per year (not taxable if employer's contribution is Rs. 1 lakh or less per year)
24.	Expense incurred by employer on providing educational facility to the children of the employee shall be exempt in the hands of an employee	Rule 3	Up to Rs.1,000 per month per child
25.	Interest on loan received from employer at concessional rate of interest couldn’t be taxed as perquisite in the hands of the employee	Rule 3	If aggregate amount of such loan during the relevant previous year does not exceed Rs.20,000
26.	Free meal provided to employees during office hours by the employer couldn’t be taxed as perquisite in the hands of the employees	Rule 3	If cost of such meal does not exceed Rs.50 per meal
27.	Value of any gift received by the employee or by member of his household from employer is exempt in the hands of the employee	Rule 3	Up to the extent of Rs.5,000 if received in kind

C.	Under the head Income from House Property
1.	Standard deductions	24(a)	30% of annual value
2.	Interest incurred on borrowed capital for construction/ acquisition of self-occupied house property (Subject to certain conditions) Note: With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 2,00,000.	24(b)	Up to Rs. 2,00,000
3.	Interest incurred on borrowed capital for re-construction, repair or renewal of self-occupied house property (Subject to certain conditions) Note: With effect from Assessment Year 2020-21, deduction for interest paid or payable on borrowed capital shall be allowed in respect of two self-occupied house properties. However, the aggregate amount of deduction under this provision shall remain same i.e., Rs. 30,000.	24(b)	Up to Rs. 30,000

D.	Under the head Profits and Gains of Business or Profession
1.	Deduction under section 32AC is available if actual cost of new plant and machinery acquired and installed by a manufacturing company after 31-03-2013 but before 01-04-2015 exceeds Rs. 25/100 Crores, as the case may be (Subject to certain conditions).	32AC	15% of actual cost of new asset acquired and installed (if it exceeds Rs. 25 Crores/100 Crores, as the case may be)
2.	The agricultural extension project shall be considered for approval under section 35CCC if expenditure (not being expenditure in the nature of cost of any land or building) expected to be incurred on such project exceeds the threshold limit (Subject to certain conditions)	Rule 6AAD read with section 35CCC	Rs. 25,00,000
2A.	If value adopted for stamp duty exceeds the consideration received on transfer of an immovable property, the stamp duty value shall be deemed to be the full value of consideration.	43CA	However, if stamp duty value does not exceed 110% of the consideration received, the consideration so received shall be deemed to be the full value of consideration
3.	Compulsory maintenance of prescribed books of account - Specified Profession (Subject to certain conditions and circumstances)	44AA	Persons carrying on specified profession
4.	Compulsory maintenance of books of account - Other business or profession (Subject to certain conditions and circumstances)	44AA	1) If the total sales, turnover or gross receipts exceeds Rs 10,00,000 in any one of the three years immediately preceding the previous year; or 2) If the income from business or profession exceeds Rs 1,20,000 in any one of the three years immediately preceding the previous year. Note: Individuals or HUFs shall be required to maintain books of account only when either their gross turnover/gross receipts exceed Rs 2,50,0000 or their income from business or profession exceed Rs 2,50,000.
5.	Compulsory Audit of books of accounts (Subject to certain conditions and circumstances)	44AB	1) If total sales, turnover or gross receipts exceeds Rs. 1 Crore in any previous year, in case of business; or Note: a) Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores. b) Threshold limit of Rs. 1 crore shall be increased to Rs. 10 crore in case where the cash receipt and payment made during the year does not exceed 5% of total receipt or payment the business 2) If gross receipts exceeds Rs. 50 Lakhs in any previous year, in case of profession.
6.	Limit on payments in cash for expenses/ liability (Subject to certain conditions and exceptions)	40A(3)	1) Rs. 10,000 (total payment to a person in a day) 2) Rs. 35,000 (total payment to a person in a day) for payments made for plying, hiring or leasing of goods carriage.
7.	Computation of income from eligible business on presumptive basis under Section 44AD (Subject to certain conditions).	44AD	Presumptive income of eligible business shall be 8 % of gross receipt or total turnover (if turnover of eligible business does not exceed Rs. 2 crore). Note: (1) Presumptive income shall be calculated at rate of 6% in respect of total turnover or gross receipts which is received by an account payee cheque or draft or use of electronic clearing system or through such other electronic mode as may be prescribed (2) The turnover limit of Rs. 2 crores shall be increased to Rs. 3 crores if the amount or aggregate of the amount of cash received during the previous year does not exceed 5% of the total turnover or gross receipts of such year. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash.
7A.	Computation of income from eligible profession on presumptive basis under section 44ADA (Subject to conditions)	44ADA	Presumptive income shall be or through such other electronic mode as may be prescribed 50% of total gross receipt if the total gross receipts from such profession do not exceed Rs. 50 lakh in a previous year. Note: if the amount of cash received during the previous year does not exceed 5% of the total gross receipt of such year then the threshold limit for total gross receipt shall be taken as Rs. 75 lakh instead of Rs. 50 lakh. The receipts through the mode of cheque or a bank draft which is not an account payee, shall be considered a receipt in cash for this purpose.
8.	Presumptive income from business of plying, hiring or leasing of goods carriage if assessee does not own more than 10 goods carriage.	44AE	For Heavy Goods Vehicle: Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by assessee For Other Goods Vehicle: Rs. 7,500 for every month or part of a month during which the goods carriage is owned by assessee Note: 'Heavy goods vehicle' means goods carriage vehicle the gross vehicle weight of which exceeds 12,000 kilograms.
9.	Alternate Minimum Tax (in case of Individual, HUF, AOP or BOI) (Subject to certain conditions)	115JC	18.5% of adjusted total income (plus surcharge and education cess) provided adjusted total income exceeds Rs. 20,00,000. Note: 1) Rate of AMT is 9% in case of a unit located in an IFSC and derives income solely in convertible foreign exchange. 2) Rate of AMT is 15% in case of a co-operative society
10.	Applicability of Domestic Transfer Pricing, if aggregate value of transactions with associated enterprises during the previous year exceeds the threshold limit	92BA	Rs. 20 Crores
11.	Every person who has entered into an international transaction or a specified domestic transaction shall keep and maintain the specified information and documents	Rule 10D read with section 92D	If aggregate value, as recorded in the books of account, of international transactions entered into by him exceeds Rs.1,00,00,000

E.	Under the head Income from Capital Gains
1	Share or interest ('assets') in a foreign company or entity shall be deemed to be situated in India, if such assets derives, directly or indirectly, its value substantially from the assets located in India. Provided the value of such assets, on the specified date, exceeds the prescribed limit.	9(1)(i)	If the value of assets: a) Exceeds Rs. 10 crores; and b) Represents at least 50% of value of all assets owned by the company or entity.
1A.	If value adopted for stamp duty exceeds the consideration received on transfer of an immovable property, the stamp duty value shall be deemed to be the full value of consideration.	50C	However, if stamp duty value does not exceed 110% of the consideration received, the consideration so received shall be deemed to be the full value of consideration.
1B.	Limit on the long-term capital gains arising from transfer of residential house property which shall be invested in two residential house properties in India.	54	A taxpayer has an option to make investment in two residential house properties in India. This option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. 2 crores.
2.	Limit on investment made by an assessee in bonds of NHAI or REC etc., from long term capital gains arising from transfer of an immovable property (being Land or Building or both) during the financial year, for claiming exemption (Subject to certain conditions)	54EC	Rs. 50,00,000 during the financial year in which immovable property is transferred and in subsequent financial year
3.	Exemption from long-term capital gain if such gain is invested by an assessee in units of fund as may be notified by Central Government to finance start-ups.	54EE	Investment in new assets or capital gains, whichever is lower, however, subject to Rs. 50 lakhs.
4.	Tax on long-term capital gains arising from transfer of an equity share, or a unit of an equity oriented fund or a unit of a business trust.	112A	• No tax if long-term capital gain doesn't exceed Rs. 1,00,000 (if transfer takes place before 23-07-2024) • No tax if long-term capital gain doesn't exceed Rs. 1,25,000 (if transfer takes place on or after 23-07-2024) Note: The aggregate threshold limit shall be Rs. 1,25,000 for the Previous Year 2024-25

F.	Under the head Income from Other Sources
1.	Gifts without consideration/ inadequate consideration from non-relatives (Subject to certain conditions)	56	Gift up to Rs. 50,000 is not chargeable to tax
2.	Transfer of immovable property for inadequate consideration.	56	If stamp duty value exceeds higher of following amount: a) Rs. 50,000; and b) Amount equal to 10% of the consideration.
3.	Sum received by a family member of a person who died due to Covid-19	56(2)(x)	Sum received upto Rs. 10 lakh from any person (other than employer of the deceased) is not chargeable to tax
4.	Standard Deduction for family pension	57(iia)	In case of normal tax regime: • 33.33% of Family Pension subject to maximum of Rs. 15,000 In case of new tax regime under section 115BAC • 33.33% of Family Pension subject to maximum of Rs. 25,000

G.	Trust
1.	Activity for advancement of any other object of general public utility shall be considered as charitable activity	2(15)	If activity is undertaken in course of carrying out of object of general public utility and aggregate receipts from such activity do not exceed 25% of total receipts of financial year.
2.	Anonymous donation to be taxed at the rate of 30%	115BBC	To the extent it exceeds 5% of total donations received by assessee or Rs.1,00,000, whichever is higher
3.	Annual receipts should not exceed the threshold limit for the purposes of claiming exemption under section 10(23C)(iiiad)/(iiiae)	Rule 2BC	Rs.1 Crore
4.	Maximum amount which an electoral trust can spend for managing its affairs	Rule 17CA	5% of the total contributions received in a year subject to an aggregate limit of Rs. 5,00,000 in the first year of incorporation and Rs.3,00,000 in subsequent year

H. Eligible Investment Funds

Section 9A provides that in the case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund (subject to certain conditions).

Conditions for an eligible investment fund

The offshore funds shall be required to fulfil the following conditions during the relevant year for being an eligible investment fund:

a) fund is not a person resident in India;

b) fund is a resident of a country with which double taxation avoidance agreement has been entered into;

c) aggregate participation or investment in the fund, directly or indirectly, by persons resident in India does not exceed 5% of the corpus of the fund;

Note: Any contribution made by eligible fund manager during first three years of operation of fund, which doesn’t exceed Rs, 25 crore, shall not be taken into account while calculating aggregating participation of investment in fund.;

d) fund and its activities are subject to applicable investor protection regulations in the country of its residence;

e) fund has a minimum of 25 members who are, directly or indirectly, not connected persons;

f) any member of the fund along with connected persons shall not have any participation interest, directly or indirectly, in the fund exceeding 10%;

g) aggregate participation interest, directly or indirectly, of ten or less members along with their connected persons in the fund, shall be less than fifty percent;

h) investment by the fund in an entity shall not exceed twenty percent of the corpus of the fund;

i) no investment shall be made by the fund in its associate entity;

j) the monthly average of the corpus of the fund shall not be less than 100 crores rupees and if the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than 100 crores rupees at the end of a period of six months from the last day of the month of its establishment or incorporation or at the end of the previous year which ever is earlier

k) fund shall not carry on or control and manage, directly or indirectly, any business in India or from India;

l) fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities undertaken by the eligible fund manager on its behalf;

m) remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken on its behalf is not less than the amount calculated is such manner as may be prescribed.

Conditions for an eligible fund manager

The following conditions shall be required to be satisfied by the person being the fund manager for being an eligible fund manager:

a) person is not an employee of the eligible investment fund or a connected person of the fund;

b) person is registered as a fund manager or investment advisor in accordance with the specified regulations;

c) person is acting in the ordinary course of his business as a fund manager;

d) person along with his connected persons shall not be entitled, directly or indirectly, to more than 25% of the profits accruing or arising to the eligible investment fund from the transactions carried out by the fund through such fund manager.

Note:

The Central Government, by notification, may relax above specified conditions in respect of an eligible investment fund and its eligible fund manager if such fund manager is located in IFSC (as defined in clause (a) of the Explanation to section 80LA) and has commenced its operation on or before 31-03-2024.

I.	Deductions under Chapter VI-A
1.	Deduction to an individual and HUF for amount invested in following ways: 1. Life insurance premium for policy: a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee b) in case of HUF, on life of any member of the HUF 2. Sum paid under a contract for a deferred annuity: a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity) b) in case of HUF, on life of any member of the HUF 3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary] 4. Contributions by an individual made under Employees’ Provident Fund Scheme 5. Contribution to Public Provident Fund Account in the name of: a) in case of individual, such individual or his spouse or any child of such individual b) in case of HUF, any member thereof 6. Contribution by an employee to a recognized provident fund 7. Contribution by an employee to an approved superannuation fund 8. Subscription to any notified security or notified deposit scheme of the Central Government For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian. 9. Subscription to notified savings certificates[National Savings Certificates(VIII Issue)] 10. Contribution for participation in unit-linked Insurance Plan of UTI: a) in case of an individual, in the name of the individual, his spouse or any child of such individual b) in case of a HUF, in the name of any member thereof 11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund: a) in the case of an individual, in the name of the individual, his spouse or any child of such individual b) in the case of a HUF, in the name of any member thereof 12. Subscription to notified deposit scheme or notified pension fund setup by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008] 13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children 14. Certain payments for purchase/construction of residential house property 15. Subscription to notified schemes of(a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b)authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both 16. Sum paid towards notified annuity plan of LIC or other insurer 17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005) 18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund) 19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions 20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above. 21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified. 22. Subscription to notified bonds issued by the NABARD. 23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions) 24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions) 25. Contribution to specified account of pension scheme referred to in section 80CCD in case of central Government employee	80C	Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))
2.	Contribution to certain specified Pension Funds of LIC/other insurer by an Individual (Subject to certain conditions).	80CCC	Up to 1,00,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD(1))
3.	Contribution to notified Pension Scheme (NPS) by an Individual (Subject to certain conditions). Note:- 1. Deduction under section 80CCD(2) on account of contribution made by the employer to a pension scheme is not subjected to ceiling limit of Rs. 1,50,000 as provided under section 80CCE. 2. Addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under section 80CCD(1), i.e., limit of 10% of salary/gross total income	80CCD	Amount contributed to pension scheme or 10% of salary/gross total income, whichever is less (subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE) shall be allowed as deduction under section 80CCD(1). Additional deduction to the extent of Rs. 50,000 shall also be available to the assessee under section 80CCD(1B). The additional deduction is not subjected to ceiling limit of Rs. 1,50,000 as provided under section 80CCE. Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 14% of salary if contribution is made by Central/State Government and 10%* of salary in case of others. 10% or 14% as the case may be, of salary in case of employees otherwise 20% of gross total income. * 14% in case income of assessee is chargeable to tax under section 115BAC
4.	Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person. An individual can also made payment to the Central Government health scheme and/or on account of preventive health check-up. specified person means - In case of Individual- Self, Spouse, dependent children or parents - In case of HUF- Any member thereof Note:- 1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000. 2. Payment on account of preventive health check-up may be made in cash. 3. Within overall limit, deduction shall also be allowed upto Rs. 50,000 towards medical expenditure incurred on the health of specified person provided such person is a senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person. 4. "Senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.	80D	In case of Individual, amount paid: a) For self, spouse and dependent children: Rs. 25,000 (Rs. 50,000 if specified person is a senior citizen) b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 50,000 if parent is a senior citizen) In case of HUF, premium up to Rs. 25,000 (Rs. 50,000 if person insured is a senior citizen) paid to insure any member of the family.
5.	Deduction allowed to resident Individual and HUF for: a) Any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent, being a person with disability b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (Subject to certain conditions).	80DD	Rs. 75,000 (Rs. 1,25,000 in case of severe disability)
6.	Expenses actually paid by resident individual and HUF for medical treatment of specified diseases and ailments of: a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters b) In case of HUF: Any member of the family who is wholly dependent upon the family (Subject to certain conditions).	80DDB	Up to Rs. 40,000 (Rs. 1,00,000 in case of senior citizen)
7.	Interest payable on loan taken up to Rs. 35 lakhs by an individual taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value does not exceed Rs. 50 lakhs (Subject to certain conditions).	80EEA	Deduction of up to Rs.50,000 towards interest on loan.
8.	Interest payable on loan taken by an individual taxpayer, who is not eligible to claim deduction under 80EE, from any financial institution, sanctioned during the period beginning on 01-04-2019 and ending on the 31-03-2022; for the purpose of acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs (Subject to certain conditions).	80EEA	Deduction up to Rs.1,50,000 towards interest on loan.
8A.	Interest payable on loan taken by an individual taxpayer from any financial institution, sanctioned during the period beginning on 01-04-2019 and ending on the 31-03-2023; for the purpose of purchase of an electric vehicle (Subject to certain conditions).	80EEB	Deduction up to Rs.1,50,000 towards interest on loan.
9.	Rent paid by an individual for furnished/unfurnished residential accommodation if he is not receiving any HRA (Subject to certain conditions)	80GG	Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income*; b) 25% of the Total Income; or c) Rs. 5,000 per month. Total Income = Gross total income minus capital gains, short term capital gains under section 111A, deductions under section 80C to 80U (other than 80GG) and income under section 115A
10.	Deduction in respect of certain donations for scientific, social or statistical research or rural development programme or for carrying out an eligible project or National Urban Poverty Eradication Fund shall be allowed (Subject to certain conditions)	80GGA	100% of donations or contributions made. No deduction shall be allowed if contribution is paid in cash in excess of Rs.10,000
10A.	Deduction from profit and gains derived by an eligible start-up from a business involving innovation, development, deployment or commercialization of new products, process or services driven by technology or intellectual property rights. Deduction in respect of eligible start-up (subject to certain conditions) Eligible start-up means a company or a limited liability partnership, incorporated on or after 1/4/2016 but before 1/4/2025 and holds a certificate from Inter-Ministerial Board of Certification.	80-IAC	100% deduction is available for any 3 consecutive assessment years out of 10 years beginning from the year in which the eligible start-up is incorporated. However, total turnover of eligible start-up should not exceed Rs. 100 Crore in previous year in which deduction under section 80-IAC is claimed.
10B.	Deductions in respect of profits and gains arising from housing projects	80-IBA	Deduction of 100% of the profits and gains derived by assessee from the business of developing and building affordable housing projects.
11.	Royalty income of resident individual - authors of certain specified category of books other than text books	80QQB	Least of the following shall be exempt from tax: a) In case of Lump sum payment - Amount of royalty income subject to maximum of Rs. 3,00,000 b) In other cases - amount of such income subject to maximum of 15% of value of books sold during the previous year.
12.	Royalty in respect of patents registered on or after 01.04.2003 earned by resident individual (subject to certain conditions)	80RRB	100% of royalty subject to maximum of Rs. 3,00,000
13.	Interest on deposits in saving account of an Individual or HUF (except senior citizen) with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)	80TTA	100% of amount of such income subject to maximum of Rs. 10,000
14.	Interest on deposit in saving/fixed account of an senior citizen with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions)	80TTB	100% of amount of such income subject to maximum of Rs. 50,000
15.	A resident individual who, at any time during the previous year, is certified by the medical authority to be a person with disability [as defined under Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995]	80U	Rs. 75,000 (Rs. 1,25,000 in case of severe disability)
16.	Maximum amount of deduction available to specified co-operative societies if it is engaged in activities in addition to the prescribed activities (Subject to certain conditions)	80P	Rs.1,00,000 in case of consumer co-operative society or Rs.50,000 in any other case
17.	Deduction available to a co-operative society, (not being a housing society or an urban consumers' society or a society carrying on transport business or a society engaged in the performance of any manufacturing operations with the aid of power,) in respect of income by way of interest on securities or any income from house property	80P	If its gross total income does not exceed Rs.20,000
18.	Producer company engaged in an eligible business of marketing, purchase or processing of agricultural produce of its members	80PA	100% of profits for a period of 5 years from the financial year 2018-19 subject to the condition that the total turnover of company shall be less than Rs. 100 crores during the financial year.

J.	Deduction of tax at source and Advance tax
1.	No deduction of tax at source from salaries	192	If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens)
1A	No TDS from payment of provident fund account of an employee	192A	If amount paid is less than Rs. 50,000.
2.	No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF	193	If amount paid or payable during the financial year does not exceed Rs. 5,000
3.	No TDS from interest on 8% Saving (Taxable) Bonds 2003, 7.75% Savings (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security paid to a resident persons	193	If amount paid or payable during the financial year does not exceed Rs. 10,000
3A.	No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual	193	If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year
4.	No TDS from dividend paid by any mode other than cash to resident persons	194	If amount paid or payable during the financial year does not exceed Rs. 5,000
5.	No TDS from interest (other than on interest on securities) paid by a banking company, co-operative bank or specified public company on time deposits Note: With effect from 01.06.2015, tax shall be deducted from interest credited or paid by a co-operative bank to its member	194A	If amount paid or payable during the financial year does not exceed Rs. 40,000 (Rs. 50,000 in case of Senior Citizens) Note: a) With effect from 01.06.2015, time deposit shall also include recurring deposit. Therefore, tax shall be deduction from payment of interest on recurring deposit if it exceeds the threshold limit of Rs. 40,000/50,000. b) The threshold limit of Rs. 40,000/50,000 shall be computed with reference to the income credited or paid by a banking company or co-operative bank (and not by individual branch thereof) which has adopted core banking solutions ('CBS').
6.	No TDS from payment of interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004	194A	If amount paid or payable during the financial year does not exceed Rs. 50,000
7.	No TDS from interest other than on securities (in any other case)	194A	If amount paid or payable during the financial year does not exceed Rs. 5,000
8.	No TDS from interest on compensation awarded by payment of Motor Accident Claims Tribunal	194A	If amount paid during the financial year does not exceed Rs. 50,000 Note: With effect from 01.06.2015, no tax shall be deducted at the time of credit of interest on compensation awarded by the Motor Accidents Claims Tribunal.
9.	No TDS from Lottery / Cross Word Puzzles	194B	If amount paid or payable during the financial year does not exceed Rs. 10,000
10.	No TDS from winnings from horse races	194BB	If amount paid or payable during the financial year does not exceed Rs. 10,000
11.	No TDS from sum paid or payable to contractor	194C	a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid or payable to contractor in aggregate does not exceed Rs. 1,00,000 during the financial year
12.	No TDS from insurance commission paid or payable during the financial year	194D	If amount paid or payable during the financial year does not exceed Rs. 15,000
12A	No TDS on the amount of income comprised in sum payable under a life insurance a police (including bonus) to a resident person	194DA	If amount paid or payable during the financial year does not exceed Rs. 1 lakh
13.	No TDS from payments made out of deposits under NSS	194EE	If amount paid or payable during the financial year does not exceed Rs. 2,500
14.	No TDS from commission paid on lottery tickets	194G	If amount paid or payable during the financial year does not exceed Rs. 15,000
15.	No TDS from payment of commission or brokerage	194H	If amount paid or payable during the financial year does not exceed Rs. 15,000. Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees.
16.	No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery	194-I	If amount paid or payable during the financial year does not exceed Rs. 2,40,000
17.	No TDS from payment of consideration for purchase of an immovable property (other than agriculture land)	194-IA	If consideration of immovable property and its stamp duty value doesn’t exceed Rs. 50,00,000
17A.	No TDS from payment of rent in respect of any land or building. Note: Other than the rent covered by section 194-I	194-IB	If amount paid or payable during the financial year does not exceed Rs. 50,000
18.	No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration	194J	If amount paid or payable during the financial year does not exceed Rs. 30,000
19.	No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land)	194LA	If amount paid or payable during the financial year does not exceed Rs. 2.50
19A.	No obligation to deduct tax by an Individual or HUF (other than those who are required to deduct income-tax as per the provisions of section 194C, section 194H or section 194J) responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section 194D) or brokerage or by way of fees for professional services.	194M	If aggregate of sum paid or credited during a financial year does not exceed Rs. 50 lakh.
19B.	No obligation to deduct tax by a banking company, co-operative bank or a post office on cash withdrawal made by a person.	194N	If aggregate of amount of cash withdrawal during the financial year from one or more account does not exceed Rs. 1 crore/20 lakhs (as the case may be).
19C.	No TDS from payment to participants of e-commerce	194-O	If amount paid or payable to resident Individual or HUF during the financial year does not exceed Rs. 5 Lakhs
19D.	No TDS from payment made to resident seller	194Q	If amount paid or payable to resident seller for purchase of goods during the Financial Year if aggregate value of goods doesn’t exceed Rs. 50 lakhs
19E.	No TDS in case any benefit or perquisite is provided to a resident	194R	If aggregate value of benefit/perquisite provided during the Financial Year doesn’t exceed Rs. 20,000
19F.	No TDS from payment on transfer of Virtual Digital Asset	194S	No tax shall be deducted under this provision in the following circumstance: • If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year. • If the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession.
19G.	No TDS on payment made to partners of Firms	194T	If amount or aggregate of amount paid/ payable during the financial year does not exceed Rs. 20,000.
20.	Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax	206A	If amount paid or payable during the financial year does not exceed: a) Rs.40,000 where payer is banking company or co-operative society; b) Rs.5,000 in other case
21.	No TCS on sale of motor vehicle or any other notified goods.	206C	If value of motor vehicle/notified goods doesn’t exceeds Rs. 10,00,000
21A.	No TCS on remittance made under Liberalized Remittance Scheme	206C(1G)	If amount remitted by a buyer during a financial year is less than Rs. 7 lakh
21B.	No TCS on sale of Goods	206C(1H)	If the aggregate value of sale in any previous year does not exceed Rs. 50 lakhs
22.	A person (not being a banking company) carrying on any business or profession in India may file an application for certificate authorizing receipt of interest and other sums without deduction of tax under section 195 (Subject to certain conditions).	Rule 29B	If he has been carrying on business or profession in India continuously for a period of not less than 5 years immediately preceding the date of the application and the value of the fixed assets in India of such business or profession as shown in his relevant books for the earlier year exceeds Rs.50,00,000
23.	Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish information.	Rule 37BB	In Part A of Form No. 15CA if the amount of payment doesn't exceed Rs. 5,00,000 in aggregate during the financial year In Part B of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate under section 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer. In Part C of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate in Form No. 15CB has been obtained from a Chartered Accountant.
23A.	Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum not chargeable to tax under the provisions of the Act, shall furnish information.	Rule 37BB	In Part D of Form No. 15CA. However, there is no reporting requirement in following cases:- i) If payment is made by an individual and it is permissible under Liberalized Remittance Scheme. ii) If remittance is covered under the Specified list
24.	Liability for payment of advance tax	208	Taxpayer is liable to pay advance-tax if his advance tax liability exceeds Rs. 10,000

K.	Filing of Return and Assessment
1.	Every person being an Individual, HUF, AOP, BOI or AJP shall be required to file return of income if his total income before claiming exemption or deduction under 10(38), 10A, 10B, 10BA, 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB or Chapter VI-A, exceeds maximum exemption limit.	139 read with Rule 12	Maximum exemption limit is as follows:- 1. In case of super senior citizen – Rs. 5,00,000 2. In case of senior citizen – Rs. 3,00,000 3. In case of any other person– Rs. 2,50,000
2.	Issue of notice under section 148 to re-open assessment within 3 years from the end of the relevant assessment year [applicable till 31-08-2024]	149	If escaped income is less than Rs. 50 lakh
3.	Issue of notice under section 148 to re-open assessment within 10 years from the end of the relevant assessment year [applicable till 31-08-2024]	149	If escaped income is Rs. 50 lakh or more
4.	Issue of notice under section 148 to re-open assessment within 3 years and 3 months from the end of the relevant assessment year [applicable from 01-09-2024]	149	If escaped income is less than Rs. 50 lakh
5.	Issue of notice under section 148 to re-open assessment within 5 years and 3 months from the end of the relevant assessment year [applicable from 01-09-2024]	149	If escaped income is Rs. 50 lakh or more
6.	Issue of notice to show cause under section 148A within 3 years from the end of the relevant assessment year [applicable from 01-09-2024]	149	If escaped income is less than Rs. 50 lakh
7.	Issue of notice to show cause under section 148A within 5 years from the end of the relevant assessment year [applicable from 01-09-2024]	149	If escaped income is Rs. 50 lakh or more
8	The president or any other members of ITAT may dispose of any case which has been allotted to the Bench of which he is a member and which pertains to an assessee whose total income as computed by the AO does not exceed the prescribed sum.	255	Rs. 50,00,000

L.	Penalties
1.	Penalty for failure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3)	234E	Rs. 200 for every day during which failure continues but not exceeding tax deductible/collectible
2.	Penalty for failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA	271A	Rs. 25,000
3.	Reporting entity of international group (as referred to in Section 286) fails to furnish information and documents in accordance with provisions of Section 92D.	271AA(2)	Rs. 5,00,000/-
3A.	Income determined by AO or CIT(A) includes any income referred to in sections 68 to 69D if such income is not included by assessee in his return of income or tax in accordance with section 115BBE has not been paid	271AAC	10% of tax payable under section 115BBE
3B.	Penalty, if during any proceedings under the Act, it is found that in the books of accounts maintained by assessee, there is: a) A false entry; or b) Any entry relevant for computation of total income of such person has been omitted to evade tax liability.	271AAD	100% of such false entries or omitted entry
3C.	Violation of the provisions of 21st proviso to section 10(23C) or section 13(1)(c) pertaining to passing of unreasonable benefits to trustees or specified person	271AAE	(a) For the first violation: to the extent of income applied by the institution for the benefit of any interested party referred to in section 13(3); (b) For any violation in subsequent years: twice the amount of such income so applied (“double penalty”).
4.	Penalty for failure to get accounts audited or furnishing a report of audit as required under section 44AB	271B	One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, whichever is less
5.	Penalty for failure to furnish a report from an accountant as required by section 92E	271BA	Rs. 1,00,000
5A.	Penalty to be levied if a person received an amount of Rs. 3 lakh or more otherwise than by an account payee cheque or bank draft or use of electronic clearing system	271DA	Amount of such receipt
6.	Penalty for not providing facility for accepting payment through prescribed electronic modes of payment by a person carrying on business if total sales, turnover or gross receipts from business exceeds Rs. 50 crore.	271DB	Rs. 5,000 rupees for every day of default
7.	Penalty for failure to furnish statement of financial transactions or reportable account as required under section 285BA(1)	271FA	Rs. 500 per day of Default
8.	Penalty for failure to furnish statement of financial transactions or reportable account within the period specified in notice issued under Section 285BA(5)	271FA	Rs. 1,000 per day of default
8A.	Penalty for furnishing inaccurate particulars in Statement of financial transactions or reportable account.	271FAA	Rs. 50,000
9.	Penalty to be levied if Investment Fund failed to furnish a statement or information or document as required under Section 9A(5)	271FAB	Rs. 5,00,000
10.	If shares of a foreign company derives its value substantially from assets located in India, and such company holds such assets in India through an Indian concern, then, such Indian concern shall furnish the prescribed information to the tax authority in accordance with Section 285A. In case of failure, penalty shall be levied.	271GA	a) 2% of value of transaction, if such transaction results in transferring right of mgmt. or control in relation to Indian concern; b) Rs. 5,00,000 in any other case
10A.	Failure to furnish report in respect of international group as referred to in section 286(2)	271GB(1)	Rs. 5,000 per day (If period of failure is up to 30 days) Rs. 15,000 per day (if period of failure continues beyond 30 days)
10B.	If any reporting entity referred to in Section 286 fails to produce the information and documents within the prescribed period	271GB(2)	Rs. 5,000 for every day during which the failure continues.
10C.	If failure [as referred to in aforesaid cases] continues after order has been served directing entity to pay the penalty	271GB(3)	Rs. 50,000 for every day for which such failure continues beginning from the date of serving such order.
10D.	Penalty if reporting entity provides inaccurate information in the report furnished under Section 286(2)	271GB(4)	Rs. 5,00,000
10E.	Penalty for failure to submit statement under section 285	271GC	Rs. 1,000 per day of failure, up to 3 months; or Rs. 1,00,000 in any other case
11.	Penalty for failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement	271H	Rs. 10,000 but may extend to Rs.1,00,000
12.	Penalty shall be levied if a person fails to furnish or furnishes inaccurate information in Form 15CA & 15CB as required under Section 195(6).	271-I	Rs. 1,00,000
12A.	Penalty shall be levied if an accountant or a merchant banker or a registered valuer has furnished incorrect information in any report or certificate.	271J	Rs. 10,000 for each incorrect report or certificate
12B.	Penalty of default in submission of statement/certificate prescribed under section 35/Section 80G	271K	Rs. 10,000 to Rs. 1 lakh
13.	Penalty for refusal or failure to : a) answer questions b) sign statement c) attend to give evidence or produce books of account, etc., incompliance with summons under section 131(1) d) comply with notice u/s 142(1)/143(2) or failure to comply with direction issued u/s 142(2A)	272A(1)	Rs. 10,000 for each failure/default
14.	Penalty for failure to: a) furnish requisite information in respect of securities as required under section 94(6); b) give notice of discontinuance of business or profession as required under section 176(3); c) furnish in due time returns, statements or certificates, deliver declaration, allow inspection, etc., under sections 133, 134, 139(4A),139(4C), 192(2C), 197A, 200(2A), 203, 206,206C, 206C(3A), 206C(1A) and 285B; d) deduct and pay tax under section226(2) e) file a copy of the prescribed statement within the time specified in section 200(3) or the proviso to section 206C(3) (up to 1-7-2012) f) file the prescribed statement within the time specified in section206A(1)	272A(2)	Rs. 500 for every day during whichthe failure continues
15.	Penalty for failure to comply with section 133B	272AA(1)	Not exceeding Rs. 1,000
16.	Penalty in case of default in complying with the provisions of section 139A relating to PAN or Aadhar, i.e., failure to obtain, quote, or authenticate PAN or Aadhar, as the case may be. The Finance (No. 2) Act, 2019 has provided for interchangeability of Aadhar with PAN. Hence, consequential amendments have been made in penal provisions also.	272B	Rs. 10,000 per default
17.	Penalty for failure to comply with section 203A	272BB(1)	Rs. 10,000 for each failure/default
18.	Penalty for quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2)	272BB(1A)	Rs. 10,000
19.	Income-tax officer can impose penalty only with the prior approval of Joint Commissioner	274	If amount of penalty exceeds Rs. 10,000
20.	Assistant Commissioner or Deputy Commissioner can impose penalty only with the prior approval of Joint Commissioner	274	If amount of penalty exceeds Rs. 20,000
21.	Commissioner or Principal Commissioner can reduce or waive penalty only with the previous approval of Principal Chief Commissioner or Chief Commissioner or Principal Director-General or Director-General	273A	If amount of penalty exceeds Rs. 1,00,000

M.	Prosecution
1.	Prosecution of 6 months to 7 years with fine for willful attempt to evade tax, penalty or interest or under reporting of income	276C(1)	If tax sought to be evaded exceeds Rs. 25 Lakhs
2.	Prosecution of 6 months to 7 years with fine for willful failure to furnish return of income under section 139(1), or furnish return of income under section 139(8A) or, in response to notice under section 142(1)(i) or section 148 or section 153A	276CC	If tax sought to be evaded exceeds Rs. 25 Lakhs
3.	Prosecution of 6 months to 7 years with fine for furnishing false statement in verification or delivery of false account, etc.	277	If tax sought to be evaded exceeds Rs. 25 Lakhs
4.	Prosecution of 6 months to 7 years with fine for abetment of false return, account, statement or declaration relating to any income chargeable to tax	278	If tax sought to be evaded exceeds Rs. 25 Lakhs

N.	Fees
1.	Fees for failure to furnish return of income within the time prescribed under section 139(1)	234F	Rs. 5,000 if return is furnished after due date specified under section 139(1). However if the total income of the person does not exceed Rs. 5 lakhs then Rs. 1,000 shall be the late filing fees.
2.	Fee for default in submission of statement/certificate prescribed under section 35/Section 80G	234G	Rs. 200 per day
2A.	Fee for default in intimating the Aadhaar Number	234H	a) Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and b) Rs. 1,000, in all other cases.
3.	Fees for filing of appeal before CIT(A)	249	a) Rs.250 if total income as computed by AO is up to Rs. 1 lakh b) Rs. 500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs c) Rs.1,000 if total income as computed by AO is more than Rs. 2 lakhs d) Rs.250 in any other case
4.	Fees for filing of appeal before CIT(A)	253	a) Rs.500 if total income as computed by AO is up to Rs. 1 lakh b) Rs.1,500 if total income as computed by AO is more than Rs. 1 lakh but up to Rs. 2 lakhs c) 1% of assessed income subject to maximum of Rs. 10,000 if total income as computed by AO is more than Rs. 2 lakhs d) Rs. 500 in any other case
5.	Fees for filing of application before CIT for revision of order under section 264	264	Rs.500
6.	Fees for filing application for advance ruling	245Q	Rs.10,000 on such fees as may be prescribed, whichever is higher
7.	Fees for filing application before settlement commission	Rule 44C	Rs. 500

O.	PAN
1.	Every person carrying on any business or profession to apply for PAN if total sales, turnover or gross receipts in any previous exceeds the threshold limit	139A	Rs.5,00,000
1A.	Every non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds the threshold limit. Note: 1) Persons associated with non-individual resident persons means the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the non-individual resident persons or any person competent to act on behalf of such persons. 2) The last date to apply for PAN shall be 31st May of next Financial Year in which financial transactions are entered into.	139A	Rs. 2,50,000
2.	Certain transaction in which quoting of PAN is mandatory.	Section 139A read with Rule 114B	a) Sale or purchase of any immovable property valued at Rs. 10 lakhs or more b) A time deposit with a bank/Nidhi company/NBFC exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year c) A time deposit with Post Office exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year d) A contract of a value exceeding Rs. 1 lakh for sale or purchase of securities e) Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange of an amount exceeding Rs. 1,00,000 per transaction. f) Payment to hotels and restaurants against their bills for an amount exceeding Rs. 50,000 at any one time g) Payment in cash for purchase of bank draft or pay orders or banker’s cheque for an amount Rs. 50,000 or more during any one day h) Deposit in cash aggregating Rs. 50,000 or more during one day with a bank i) Payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 50,000 at any one time j) Payment in cash for purchase of any foreign currency of an amount exceeding Rs. 50,000 at any one time. k) Payment of an amount of Rs. 50,000 or more to a Mutual Fund for purchase of units or to a company for acquiring shares or debentures or bonds issued by it l) Payment of an amount of Rs. 50,000 or more to RBI for acquiring bonds issued by it m) Payment in cash or by way of a bank draft or pay order or banker's cheque of an amount aggregating to more than Rs. 50,000 in a financial year for one or more pre-paid payment instruments issued by RBI to a banking company or a co-operative bank or to any other company or institution. n) Payment of an amount of Rs. 50,000 or more in a year as life insurance premium to an insurer o) Payment for sale or purchase of goods or services of any nature (other than those specified above in Point No. (a)to(n)) of an amount exceeding Rs. 2,00,000 per transaction.

P.	Others Provisions
1.	Restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect	Rule 48K	If value of property exceeds: 1. Rs. 75,00,000 if immovable property is comprised within in area of Greater Bombay 2. Rs. 50,00,000 if immovable property is comprised within in area of Union territory of Delhi 3. Rs. 25,00,000 if immovable property is comprised within in area of Calcutta Metropolitan Area and Madras Metropolitan Planning Area 4. Rs. 25,00,000 if immovable property is comprised within in area of Bangalore Metropolitan Region and the areas declared as Ahmedabad Urban Development Area and the areas comprised in the city of Ahmedabad 5. Rs. 25,00,000 if immovable property is comprised within in area of Pune 6. Rs. 20,00,000 if immovable property is comprised within in areas other than those mentioned above and notified vide SO 339(E), dated 8th May, 1989; SO 53(E), dated 19th January, 1990 and SO 180(E), dated 14th March, 1991 7. Rs. 10,00,000 if the agreement for transfer is entered into, on or before the 31-07-1995
2.	No restriction on transfer of immovable property without prior agreement between transferor and transferee to that effect	269UC	If value of property does not exceed Rs. 5,00,000
3.	Transfer of any asset except stock-in-trade, without obtaining the permission of assessing officer, in favour of any other person during the pendency of any proceeding under the act of which notice is served on the assessee to be considered as void	281	If amount of tax or other sum payable or likely to be payable exceeds Rs. 5,000 or value of asset transferred exceeds 10,000
4.	Submission of statements by producers of cinematograph films or person engaged in specified activity within prescribed period	285B	Reporting of all payments made by him or due from him to each such persons as is engaged by him in such production which exceeds Rs. 50,000
5.	No statement is required to be furnished to the registrar in respect of transfer of immovable property	269P	If apparent consideration for such property doesn’t exceedRs.50,000
6.	Limit on accepting loan or deposit or any specified sum otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions)	269SS	Rs. 20,000 in aggregate
6A.	Limit on receiving any amount otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions)	269ST	Rs. 2,00,000 or more in aggregate from a person in a day
7.	Limit on repayment of loan or deposit or any specified advance received by it, otherwise than by account payee cheque or account payee bank draft or electronic clearing system or through such other electronic mode as may be prescribed (Subject to certain conditions)	269T	Rs. 20,000 in aggregate
8.	Rebate to resident individual whose total income does not exceed Rs. 5,00,000	87A	Tax payable subject to maximum of Rs. 12,500
8A.	Rebate to assessee whose total income chargeable to tax under section 115BAC(1A) is upto Rs. 7,00,000	87A	Tax payable subject to maximum of Rs. 25,000
9.	Income of minor child clubbed under Section 64(1A) with parent’s income.	10(32)	Rs. 1,500 per child or Income of Minor, whichever is lower

[As amended by Finance (No. 2) Act, 2024]

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Income Tax - Periods of Limitation
- For AY 2025-26

[AY 2025-26]

Section	Nature of compliance	Limitation of time
(1)	(2)	(3)
2(48)	Filing application for getting zero coupon bonds notified.	3 months before the date of issue of bonds (but not earlier than 24 months immediately before the first day of the financial year in which bonds are to be issued)
2(48)	Submission of chartered accountant's certificate in respect of zero coupon bonds specifying the amount invested in each year.	Within 2 months from the end of each financial year.
9(1)	Electronically submission of information in Form No. 49D pertaining to any transfer of the share of, or interest in, a foreign company/entity.	Within 90 days from the end of the financial year in which any such transfer takes place (within 90 days of the transaction where the transaction has the effect of directly or indirectly transferring the rights of management in relation to Indian concern)
10(21)	Furnishing (by a research association) a statement to accumulate/set apart income for future application by uploading Form No. 10	Before the expiry of time allowed for submission of return of income under section 139(1)
9A(5)	Section 9A provides that fund management activity carried out by an eligible offshore investment fund through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India (subject to certain conditions).	Within 90 days from the end of the financial year
	The provision requires that eligible investment fund shall furnish a statement, in respect of its activities in a financial year, in the prescribed form containing information relating to fulfilment of specified conditions and such other information or documents as may be prescribed.
10(23C)	Making an application for grant of approval by entities referred to in section 10(23C)(iv)/(v)/(vi)/(via):
	If entity is approved on or before 31-03-2021	On or before 30-06-2024
	If entity is approved and the period of such approval is due to expire	At least 6 months prior to expiry of said approval but before 01-10-2024
	Where such entity has been provisionally approved	At least 6 months prior to expiry of the period of the provisional approval; or within 6 months of the commencement of its activities, whichever is earlier but before 01-10-2024.
	Any other case (applicable from 01-10-2023) where activities of such entity have not commenced	At least 1 month prior to commencement of the previous year relevant to the assessment year from which said approval is sought but before 01-10-2024
	Any other case (applicable from 01-10-2023) where activities of such entity have commenced and no income (or part) has been excluded on account of applicability of section 10(23C) or section 11 for any previous year ending on or before the date of such application	At any time after the commencement of activities but before 01-10-2024

	Passing of order by CIT or PCIT:
	If entity is approved on or before 31-03- 2021	Within 3 months from end of the month in which application is received
	If entity is approved and the period of such approval is due to expire	Within 6 months from the end of the month in which application is received
	Where such entity has been provisionally approved	Within 6 months from the end of the month in which application is received
	Any other case (applicable from 01-10-2023) where activities of such entity have not commenced	Within 1 month from the end of the month in which application is received
	Any other case (applicable from 01-10-2023) where activities of such entity have commenced and no income (or part) has been excluded on account of applicability of section 10(23C) or section 11 for any previous year ending on or before the date of such application	Within 6 months from the end of the month in which application is received
10(23C)	Getting accounts audited and uploading audit report in Form no. 10BB	One month prior to the due date of furnishing return of income under section 139(1). Circular No. 6/2023, dated 24-5-2023, provides that it can be filed upto due date of ITR.
	Uploading Form 10 - Exercising option available under Explanation 3(a) to third proviso to Section 10(23C)	2 months prior to the due date specified under section 139(1).
10A	Audit report certifying the deduction claimed under section 10A	Before the specified date referred to in section 44AB
	Furnishing declaration by assessee in respect of industrial undertaking in any free trade zone for not availing tax holiday under section 10A	Before due date for furnishing return of income under section 139(1)
10B(8)	Furnishing declaration by assessee in respect of 100 per cent export-oriented undertaking for not availing tax holiday under section 10B	Before due date for furnishing return of income under section 139(1)
11(1), Explanation	Exercising option available under Explanation to section 11(1) by uploading Form No. 9A	2 months prior to the due date specified under section 139(1). Circular No. 6/2023, dated 24-5-2023, provides that it can be filed upto due date of ITR.
11(2)	Furnishing a statement to accumulate/set apart income for future application by uploading Form No. 10	2 months prior to the due date specified under section 139(1). Circular No. 6/2023, dated 24-5-2023, provides that it can be filed upto due date of ITR.
12A	Making an application for registration to claim exemption under section 11/12:
	Trust or institution is registered under section 12A/12AA on or before 31-03- 2021	On or before 30-06-2024
	Trust or institution is registered under section 12AB and period of said registration is due to expire	At least 6 months prior to expiry of said period
	Trust or institution has been provisionally registered under section 12AB	Earlier of the following: • At least 6 months prior to expiry of the period of the provisional registration; or Within 6 months of commencement of its activities.
	Trust or institution has become inoperative due to first proviso to section 11(7)	At least 6 months prior to commencement of the assessment from which said registration is sought to be made operative
	Trust or institution has adopted or undertaken modifications of the objects which do not conform to conditions of registration	Within a period of 30 days from date of said adoption or modification
	In any other case (applicable from 01-10-2023) where activities of the trust/institution have not commenced	At least 1 month prior to commencement of the previous year relevant to assessment year from which the said registration is sought
	In any other case (applicable from 01-10-2023) where activities of the trust/institution have commenced and no income (or part) has been excluded on account of applicability of Section 10(23C) or Section 11/12 for any previous year ending on or before the date of such application	At any time after the commencement of its activities
12AB	Passing of order by CIT or PCIT
	Trust or institution is registered under section 12A/12AA on or before 31-03-2021	Within 3 months calculated from end of month in which application is received
	Trust or institution is registered under section 12AB and period of said registration is due to expire	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
	Trust or institution has been provisionally registered under section 12AB	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
	Trust or institution has become inoperative due to first proviso to section 11(7)	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
	Trust or institution has adopted or undertaken modifications of the objects which do not conform to conditions of Registration	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
	In any other case (applicable from 01-10-2023) where activities of the trust/institution have not commenced	Within 1 month calculated from end of month in which application is received
	In any other case (applicable from 01-10-2023) where activities of the trust/institution have commenced and no income (or part) has been excluded on account of applicability of Section 10(23C) or Section 11/12 for any previous year ending on or before the date of such application	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
Section 33AB	Getting accounts audited and furnishing of audit report	One month prior to the due date of furnishing return of income under section 139(1).
Section 33ABA	Getting accounts audited and furnishing of audit report	One month prior to the due date of furnishing return of income under section 139(1).
35	Order accepting/rejecting application made under first proviso to section 35(1) for grant of approval under section 35(1)(ii)/(iii)	Within 12 months from end of month in which such application was received
35(2AA)	Filing annual audited accounts for each approved programme by the National Laboratory, etc.	October 31 each year
	Submitting copy of audited statement of accounts for approved programmes	Within 6 months of completion
	Passing order by the prescribed authority in Form 3CH	Within 2 months from receipt of application
35(2AB)	Electronically furnishing report by prescribed authority in relation to in-house research facility in Part A of Form No. 3CL	Within 120 days of grant of approval
	Submitting copy of audited accounts in Form No. 3CLA to the Secretary, Department of Scientific and Industrial Research	On or before due date of submission of return of income
	Electronically furnishing report by prescribed authority quantifying the expenditure incurred on in-house research and eligible for weighted deduction in Part B of Form No. 3CL	Within 120 days of submission of audit report
35ABA(3)	Withdrawing deduction claimed and granted to the assessee under section 35ABA, if subsequently there is a failure to comply with the provisions specified in said section	Within 4 years from the end of the previous year in which the failure to comply with the conditions referred to in section 35ABA takes place
44AB	Getting accounts audited by accountant and furnishing report	One month prior to due date for furnishing the return of income under section 139(1)
44DA	Section 44DA Audit report to certify the income computed by way of royalties provisions of section 44DA	One month prior to due date of furnishing the return of income under section 139(1)
50B	Audit report to certify the income computed by way of royalties provisions of section 44DA	One month prior to due date of furnishing the return of income under section 139(1)
80G(5)	Making an application for approval under Section 80G(5)
	Re-approval of entity approved on or before 31-03-2021	On or before 30-06-2024
	Renewal of approval if the entity is approved under the new approval scheme and the period of such approval is due to expire	At least 6 months prior to expiry of such Approval
	Conversion of provisional approval to regular approval	Earlier of the following: At least 6 months prior to expiry of the period of the provisional approval; or Within 6 months of commencement of its activities.
	Provisional approval(applicable from 01-10-2023) where activities of such entity have not commenced	At least 1 month prior to commencement of the previous year relevant to the assessment year from which said approval is sought
	Direct regular approval where activities of such entity have commenced	At any time after the commencement of its activities
	Passing of order by CIT or PCIT:
	Re-approval of entity approved on or before 31-03-2021	Within 3 months calculated from end of month in which application is received
	Renewal of approval if the entity is approved under the new approval scheme and the period of such approval is due to expire	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
	Conversion of provisional approval to regular approval	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
	Provisional approval(applicable from 01-10-2023) where activities of such entity have not commenced	Within 1 month calculated from end of month in which application is received
	Direct regular approval (applicable from 01-10-2023) where activities of such entity have commenced	Within 6 months calculated from end of month in which application is received or within 6 months calculated from the end of quarter in which application is received (effective from 01-10-2024)
Section 80G(5)	Furnishing statement of donations in Form no. 10BD or certificate of donation in Form no. 10BE	On or before May 31 immediately following the financial year in which donation is received by the entity.
Section 80JJAA	Furnishing of report in Form no. 10DA to claim deduction	One month prior to due date of furnishing the return of income under section 139(1)
80QQB	Receiving or bringing into India in convertible foreign exchange, income by way of royalty or copyright fees, earned outside India	Within 6 months from end of previous year or such extended period as the Competent Authority may allow in this behalf
80RRB	Receiving or bringing into India in convertible foreign exchange, income by way of royalty on patents, earned outside India	Within 6 months from end of previous year or such extended period as the Competent Authority may allow in this behalf
Section 90/90A/91	Furnishing Form no. 67 and certificate or statement referred to in Rule 128 with respect to Foreign Tax Credit	On or before due date for furnishing return of income under section 139(1)
92CA(3A)	Passing of order u/s 92CA(3) by Transfer Pricing Officer	At least sixty days before the period of limitation referred to in section 153 or section 153B, as the case may be, for making the order of assessment or reassessment or recomputation, or fresh assessment, expires.
		Note:
		If time available with TPO for making an order is less than sixty days, after excluding the time - for which assessment proceedings are stayed or - taken for receipt of information from foreign jurisdiction, then such remaining period shall be extended to 60 days. [Inserted by the Finance Act, 2016 w.e.f 1-6-2016]
92CD(1)	Submission of modified return in accordance with and limited to advance pricing agreement	Within 3 months from the end of the month in which advance price agreement was entered
92CD(5)(a)	Passing order under section 92CD(3) in respect of modified return	Within 1 year from the end of the financial year in which modified return is furnished
92D	Furnishing information/documents required by revenue authorities	Within a period of 10 days from the date of receipt of a notice issued in this regard, and such period may be extended by a further period not exceeding 30 days
92E	Furnishing report of accountant	30th November of relevant assessment year
115BA	Option to opt for concessional tax rate of 25% by certain domestic companies	On or before due date of furnishing return of income under section 139(1)
115BAA	Option to opt for concessional tax rate of 22% by certain domestic companies	On or before due date of furnishing return of income under section 139(1)
115BAB	Option to opt for concessional tax rate of 15% by new manufacturing domestic companies	On or before due date of furnishing return of income under section 139(1)
115BAC	Option to opt for concessional tax rate by individual, HUF, AOP, BOI, Artificial Judicial Person	On or before due date of furnishing return of income under section 139(1)
115BAD	Option to opt for concessional tax rate of 22% by resident co-operative societies	On or before due date of furnishing return of income under section 139(1)
115BAE	Option to opt for concessional tax rate by a resident co-operative society	On or before due date of furnishing return of income under section 139(1)
115BA(4)	Exercising option under section 115BA(1) for lower tax rate by a domestic company	On or before the due date of submission of first return of income under section 139(1)
115BBF(3)	Exercising option for taxation of royalty income in respect of patent developed and registered in India for any previous year in accordance with the provisions of section 115BBF(1)	On or before the due date of submission of return of income under section 139(1)
115JB(4)	Obtaining a certificate from a chartered accountant in Form No. 29B pertaining to computation of book profit in the case of a company	Before the specified date referred to in Section 44AB
115JC(3)	Obtaining a certificate from a chartered accountant in a prescribed form pertaining to computation of alternate minimum tax and adjusted total income in the case of a limited liability partnership	Before the specified date referred to in Section 44AB
115JG(3)(iii)	Recomputing income to withdraw the benefit, exemption or relief claimed under section 115JG(1) in case of failure to comply with the conditions of RBI scheme or notification of the Government (applicable from the assessment year 2013-14)	Within 4 years from the end of the previous year in which failure to comply with condition takes place
115QA(3)	Deposit of tax to credit of Government in case of distributed income of domestic company for buy-back of shares	Within 14 days from date of payment of any consideration to the shareholder on buy-back of shares
115R(3)	Deposit of tax on distributed income of UTI/Mutual Fund	Within 14 days from the date of distribution or payment of income, whichever is earlier
115R(3A)¹	Furnishing statement in prescribed form to prescribed income-tax authority giving details of income distributed to unit holders, tax paid thereon, etc.	On or before 15th September in each year
115TA(2)	Deposit of tax to credit of Government in case of income distributed by securitization trust	Within 14 days from date of distribution or payment of such income, whichever is earlier
115TA(3)¹	Person responsible for making payment of income distributed by securitisation trust to furnish to prescribed income-tax authority, statement in prescribed form and verified in prescribed manner giving details of amount of income distributed to investors during the previous year, the tax paid thereon and other relevant prescribed details	On or before 15th September in each year
115TCA(4)	Furnishing statement to PCIT/CIT of income paid or credited by a securitisation trust in Form No. 64E	November 30 immediately after the end of the financial year
115TCA(4)	Furnishing statement to investors of income distributed by a securitisation trust in Form No. 64F	June 30 immediately after the end of the financial year
115TD(1)	Transfer of all assets in case of dissolution of a charitable trust to another charitable trust to avoid tax on accreted income	Within 12 months from the end of the month in which dissolution takes place (applicable from June 1, 2016)
115TD(5)	Payment of tax on accreted income	Within 14 days from the date of merger or the date on which the order cancelling the registration is received or the date on which the order rejecting application for fresh registration is received, etc. (applicable from June 1, 2016)
115U(2)	Person responsible for making payment of income on behalf of venture capital company/fund and venture capital company/fund to furnish to person receiving such income and to prescribed income-tax authority, statement in prescribed form and verified in prescribed manner, giving details of nature of income paid or credited during the previous year and such other relevant details as may be prescribed	30th November of financial year following previous year during which such income is paid or credited
115UA	Any person responsible for making payment of income distributed on behalf of a business trust to a unit holder shall furnish a statement to the principal Commissioner of Income-tax or Commissioner of Income-tax in Form No. 64A , giving details of income distributed during the year.	On or before 30th November of financial year following the year following which such income is distributed
	Any person responsible for making payment of income distributed on behalf of a business trust to a unit holder shall furnish a statement to this effect to the unit holder in Form No. 64B.	On or before 30th June of financial year following the year during which such income is distributed
115UB(7)	Furnishing of statement in Form no. 64C of income distributed by an investment fund to its unit holders	30th day of June of the financial year following the previous year during which the income is paid or credited
	Furnishing of statement of income by an investment fund in Form no. 64D to the Principal Commissioner or the Commissioner of Income-tax	15th day of June of the financial year following the previous year during which the income is paid or credited
115VP	Opting for Tonnage Tax System (TTS)
	- Existing qualifying company	Between 1-10-2004 and 31-12-2004
	- Company incorporated after 1-1-2005 and being a qualifying company	Within 3 months of incorporation
	- Existing company which becomes a qualifying company after 1-1-2005	Within 3 months of it becoming a qualifying company
	- a unit of an IFSC, who has availed of deduction under Section 80LA	Within three months from the date deduction under Section 80LA ceases
115VP(4)	Joint Commissioner passing order under sub-section (4) of section 115VP	Within one month from end of month in which application under section 115VP(1) was received
115VR	Renewal of tonnage tax scheme	Within one year from the end of the previous year in which the option ceases to have effect
115VY	Opting for tonnage tax scheme by amalgamated company	Within 3 months from the date of the approval of amalgamation
115VW	Furnishing of report in Form no. 66 pertaining to tonnage tax	One month prior to due date of furnishing the return of income under section 139(1)
115WD(1)²	Filing return of fringe benefits
	- by company/person whose accounts are to be audited	On or before 30th September of relevant assessment year
	- by other employers	On or before 31st July of relevant assessment year
115WE(1)²	Sending intimation u/s 115WE(1)	Before expiry of 1 year from end of financial year in which return is made
115WE(2)²	Notice for scrutiny assessment	Before the expiry of 6 months from the end of financial year in which return is furnished
124(3)	Challenging Assessing Officer's jurisdiction	Where a return is made under section 139(1), before expiry of 1 month from the date on which a notice under section 142(1) or 143(2) is served or before the completion of assessment, whichever is earlier
		Where no return is made before the expiry of time allowed by notice under section 142(1) or under section 148 for making the return or under section 144 for showing cause why best judgment assessment should not be made, whichever is earlier
131(3)	Retention of impounded books or documents by Assessing Officer/Assistant Director without obtaining approval of Chief Commissioner/Director General/Commissioner/Director/Principal Chief Commissioner/Principal Director General/Principal Commissioner/Principal Director	Not more than 15 days (exclusive of holidays)
132(8)	Retaining books of account or other documents seized under section 132(1) or 132(1A) by authorised officer without approval of Chief Commissioner/Commissioner/Director General or Director/Principal Chief Commissioner/Principal Director General/Principal Commissioner/Principal Director	Not more than 180 days [30 days from the date of assessment order under section 153A or section 158BC(c)]
132(8A)	Period for which order passed under section 132(3) to remain in force	60 days from date of order
132(9A)	Handing over of books, etc., to ITO having jurisdiction	60 days from date on which last of authorisations for search was executed
132(9B)	Provisional attachment of property for protecting interest of revenue	Within 60 days from the date on which the last of the authorisations for search was executed (applicable from April 1, 2017)
132(9C)	Expiry of provisional attachment order made under section 132(9B)	After the expiry of 6 months from the date of such order (applicable from April 1, 2017)
132(9D)	Making a reference to valuation officer to estimate fair market value of property	Within 60 days from the date on which the last of the authorisations for search was executed (applicable from April 1, 2017)
132B(1)	Release of assets seized after recovery of existing liability	Within 120 days from date on which last of the authorisations/requisitions under section 132/132A was executed
132B(1), first proviso	Making application to Assessing Officer for release of asset explaining nature and source of acquisition of asset	Within 30 days from end of the month in which asset was seized
133A(3)	Retention by income-tax authority of impounded books of account, documents without approval of Chief Commissioner/Director General/Principal Chief Commissioner/Principal Director General	Not more than 15 days (exclusive of holidays)
139(1)	(a) Filing of return by any company other than covered in (c) below	October 31st of the assessment year
	(b) Filing return of income by any non-corporate assessee other than covered in (c) below :
	(i) in the case where accounts are to be audited or where accounts of the firm in which assessee is a working partner are required to be audited or the spouse of such partner if the provisions of section 5A applies	October 31st of relevant assessment year
	(ii) in other cases	July 31 of relevant assessment year
	(c) Filing of return where an assessee (corporate/non-corporate including partners of the firm) is required to furnish a report in Form No. 3CEB under section 92E	November 30 of the assessment year
139(3)	Filing of return of loss	Within the time allowed under section 139(1)
139(4)	Filing belated return of income	Any time before 3 months prior to end of the relevant assessment year or before completion of assessment, whichever is earlier.
139(4A)	Filing return by every person receiving income in respect of which he is assessable as a representative assessee from property held under trust/legal obligation wholly or partly for charitable or religious purposes, etc., if total income exceeds maximum amount not chargeable to tax	Within time allowed under section 139(1)
139(4B)	Filing of return by every political party by its chief executive officer	Within time allowed under section 139(1)
139(4C)	Filing of return by every: (a) Research association as referred to in section 10(21); (b) News agency as referred to in section 10(22B); (c) Association or institution as referred to in section 10(23A); (d) Institutions as referred to in section 10(23B); (e) Fund/institution/trust/university/other educational institution/medical institution as referred to in sub-clause (iiiad), (iiiae), (iv), (v), (vi) or (via) of section 10(23C)³; (f) Trade union/association referred to in sub-clause (a) or (b) of section 10(24), (g) Body/trust/authority as referred to in section 10(46); (h) Infrastructure debt fund as referred to in section 10(47) (i) Mutual Fund as referred to in section 10(23D) (j) Securitisation trust as referred to in section 10(23DA) (k) Venture capital company or venture capital fund as referred to in section 10(23FB) if total income without giving effect to the provisions of section 10 exceeds the maximum amount not chargeable to tax.	Within time allowed under section 139(1)
139(4D)	Filing return by every university, college or other institution referred to in section 35(1)(ii) and 35(1)(iii) which is not required to furnish return of income or loss under any other provisions	Within time allowed under section 139(1)
139(4E)	Every business trust, which is not required to furnish return of income or loss under any other provisions of section 139(1), shall furnish its return of income.	Within time allowed under section 139(1)
139(4F)⁴	An investment fund as referred to in section 115UB, which is not required to furnish return of income or loss under any other provisions of section 139(1), shall furnish its return of income.	Within time allowed under section 139(1)
139(5)	Filing revised return	Any time before 3 months prior to the end of the relevant assessment year or before the completion of assessment, whichever is earlier
139(8A)	Furnishing updated return	Within 24 months from the end of the relevant assessment year.
139(9)	Rectifying defect in return of income	Within 15 days from date of intimation by Assessing Officer or extended time
139A	Filing application for allotment of permanent account number	See rule 114(3)
140A(1)	(i) Payment of income-tax on self-assessment	Before furnishing return of income
	(ii) Payment of interest and fee on tax due for filing belated return or default or delay in payment of advance tax	Before furnishing return of income
142A(6)	Sending report by the Valuation Officer to the Assessing Officer	Within 6 months from the end of the month in which a reference is made by the Assessing Officer under section 142A(1)
143(1)	Sending intimation under section 143(1)	Before expiry of 1 year from end of financial year in which return is made
143(1)(a)	Sending objection in response to intimation for adjustments under section 143(1)(a)	Within 30 days of issue of such intimation (Applicable w.e.f. Assessment year 2017-18)
143(2)(ii)	Serving notice in case of understatement of income or under payment of tax for hearing for regular assessment/limited scrutiny assessment	Before expiry of 3 months from end of financial year in which return is furnished
144BA(2)	Furnishing objection by assessee to notice of invoking GAAR provisions by Principal Commissioner/Commissioner (applicable from 1-4-2018)	Within such period (but not exceeding 60 days) as specified in the notice
144BA(13)	Issuing direction by Approving Penal under section 144BA(6) in respect of the declaration of an agreement as an impermissible avoidance arrangement under Chapter X-A (applicable from 1-4-2018)	Within 6 months from the end of the month in which the reference under section 144BA(4) was received from the Principal Commissioner/Commissioner
144C(2)	Filing of response by eligible assessee by (a) acceptance of variations to Assessing Officer, or (b) filing his objections, if any, to such variation with the Dispute Resolution Panel and the Assessing Officer	Within 30 days of receipt by assessee of draft order
144C(4)	Passing of assessment order under section 144C(3)	Within one month from end of month in which acceptance is received or period of filing objections under section 144C(2) expires
144C(12)	Issue of directions under section 144C(5)	Within 9 months from end of month in which draft order is forwarded to eligible assessee
144C(13)	Completion of assessment on receipt of directions issued under section 144C(5)	Within one month from end of month in which such direction is received
148	Requiring an assessee to furnish a return of income where income has escaped assessment	Within 3 months from the end of the month in which notice is issued under section 147 Note: this period may be extended by AO
148A	Furnishing of reply in response to show cause notice issued	Not less than 7 days but not exceeding 30 days from date of issue of notice
	Passing order by AO whether or not it is a fir case to issue notice under 148	Within 1 month from end of the month in which the reply referred to in section 148A(c) is received by AO. If no reply is furnished, such order can be passed within 2 months from end of month in which time or extended time allowed to furnish a reply as per section 148A(b) expires.
149(1) (applicable from 01-04-2024 till 31-08-2024	Issuing notice under section 148 :
	If the escaped assessment amounts to or likely to amounts to —
	(i) less than Rs. 50,00,000	Within 3 years from end of relevant assessment year
	(ii) Rs. 50,00,000 or more	Within 10 years from end of relevant assessment year
149(1) (applicable from 01-09-2024)	Issuing notice under section 148 :
	If the escaped assessment amounts to or likely to amounts to —
	(i) less than Rs. 50,00,000	Within 3 years and 3 months from end of relevant assessment year
	(ii) Rs. 50,00,000 or more	Within 5 years and 3 months from end of relevant assessment year
149(1) (applicable from 01-09-2024)	Issuing notice under section 148A :
	If the escaped assessment amounts to or likely to amounts to —
	(i) less than Rs. 50,00,000	Within 3 years from end of relevant assessment year
	(ii) Rs. 50,00,000 or more	Within 5 years from end of relevant assessment year
150	Issuing notice under section 148 for assessment/reassessment/recomputation pursuant to any finding or direction in an order passed :	No time limit
	(i) by any authority in any proceeding under Income-tax Act in appeal/reference/revision
	(ii) by a court in any proceeding under any other law
153(1)	Passing assessment order under section 143 or 144	a) Within 21 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2017-18 or before] b) Within 18 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2018-19] c) Within 12 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2019-20] d) Within 18 months from end of the assessment year in which income was first assessable [Applicable for assessment year 2020-21] e) Within 9 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2021-22] f) Within 12 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2022-23 and onwards] Note: • If reference is made to TPO, the period available for assessment shall be ex-tended by 12 months. • If return has been furnished under section 139(8A), the order of assessment shall be passed within 9 months from the end of financial year in which such return was furnished.
153(1B)	Passing order under section 143/144 if return of income is furnished in consequence of an order under section 119(2)(b)	Within 12 months from the end of the Financial Year in which return is furnished.
153(2)	Making assessment/reassessment, etc., under section 147	a) Within 9 months from end of the financial year in which notice under section 148 was served. [if notice is served before 01-04-2019] b) Within 12 months from end of the financial year in which notice under section 148 was served. [if notice is served on or after 01-04-2019] Note: If reference is made to TPO, the period available for reassessment shall be extended by 12 months.
153(3)	An order of fresh assessment (or fresh order under section 92CA) in pursuance of order under section 254, 263 or 264 setting aside or cancelling assessment (or an order under section 92CA)	a) Within 9 months from end of the financial year in which order under section 254 is received by - Principal Chief Commissioner or - Chief Commissioner or - Principal Commissioner or - Commissioner or, - as the case may be an order under section 263/ 264 is passed by Principal Commissioner or Commissioner b) Within 12 months from the end of the financial year in which order under section 254 is received or order under section 263 or 264 is passed by the authority. [if order is passed on or after financial year 2019-20] Note: If reference is made to TPO, the period available for assessment shall be extended by 12 months.
153(5)	Giving effect to an order [under Section 250/254/260/262/263/264] by AO or TPO wholly or partly, otherwise than by making a fresh assessment or reassessment (or order under section 92CA)	Within a period of 3 months from the end of the month in which order is received by - Principal Chief Commissioner or - Chief Commissioner or - Principal Commissioner or - Commissioner, - As the case may be the order under section 263/ 264 is passed by the Principal Commissioner or Commissioner Note: 1) If it is not possible to give effect to such order within the aforesaid period, the Principal Commissioner or Commissioner may allow an additional period of 6 months to AO. 2) If verification on any issue was required by way of submission of any document or where an opportunity of being heard is to be provided to assessee. Then order shall be made within the time specified in 153(3) [Inserted by Finance Act 2017, w.e.f. 1.6.2017]
153(5)	Where an order under section Section 250/254/260/262/263/264 requires verification of any issue by way of submission of any document by the assesse or any other person or where an opportunity of being heard is to be provided to the assesse	Time- limit of section 153(3)will apply (wef June 1, 2016)
Section 153(5A)	Modification by the AO of an order of assessment/reassessment in conformity with TPO’s order giving effect to an order/direction under 263/92CA	Within 2 months from the end of the month in which such order of TPO is received by the AO
153(6)(i)	An order of assessment, reassessment or recomputation on assessee or any person in consequence of or to give effect to any finding or direction contained in - An order under Section 250/254/260/262/263/264 or - An order of any court in a proceedings otherwise than by way of appeal or reference	Within 12 months from the end of the month in which such order is received or passed by the Principal Commissioner or Commissioner, as the case may be
153(6)(ii)	An order of assessment on a partner of the firm in consequence of an assessment made on the firm under section 147.	Within 12 months from the end of the month in which the assessment order in case of firm is passed.
153	Passing of assessment or reassessment order where assessee exercise option to withdraw pending application before Settlement Commission under section 245M	One year after the exclusion of the period under section 245M(5) and where such period of limitation is less than one year, it shall be deemed to have been extended to one year
153B	Passing assessment order under section 153A(not applicable if search is initiated under section 132 or requisition is made under section 132A on or after 1st April, 2021)	a) Within a period of 21 months from end of the financial year in which the last of the authorizations for search/requisition under section 132/132A was executed. This period cannot be less than 9 months from the end of the financial year in which books of account, etc., are handed over under section 153C to the concerned Assessing Officer. (if search conducted in the financial year 2017-18 or before) b) Within a period of 18 months from end of the financial year in which the last of the authorizations for search/requisition under section 132/132A was executed. This period cannot be less than 12 months from the end of the financial year in which books of account, etc., are handed over under section 153C to the concerned Assessing Officer. (if search conducted in the financial year 2018-19) c) Within a period of 12 months from end of the financial year in which the last of the authorizations for search/requisition under section 132/132A was executed. This period cannot be less than 12 months from the end of the financial year in which books of account, etc., are handed over under section 153C to the concerned Assessing Officer. (if search conducted in the financial year 2019-20 or onwards)
	Passing of assessment order where a proceeding before the Settlement Commission abates under section 245HA	One year after the exclusion of the period under section 245HA(4) and where such period of limitation is less than one year, it shall be deemed to have been extended to one year
	Passing of assessment, reassessment or recomputation order where assessee exercise option to withdraw pending application before Settlement Commission under section 245M	One year after the exclusion of the period under section 245M(5) and where such period of limitation is less than one year, it shall be deemed to have been extended to one year
154	Rectifying any mistake apparent from record by income-tax authority referred to in section 116 to—	Within 4 years from end of financial year in which order sought to be amended is passed, or within 6 months from the end of the month in which the application is received by the income-tax authority, whichever is earlier
	(i) amend any order passed by it
	(ii) amend any intimation or deemed intimation under section 143(1)
	(iii) amend any intimation under section 200A(1) (iv) amend any intimation under section 206CB(1), i.e., intimation regarding processing of TCS statement.
155(1)/(2)	Amending assessment order of partner of firm or member of AOP/BOI for inclusion of correct share from firm/AOP/BOI	Within 4 years from end of financial year in which final order is passed in case of firm/AOP/BOI
155(1A)	Amending assessment order of partner for adjusting income from firm to the extent not deductible under section 40(b)	Within 4 years from end of financial year in which final order was passed in case of the firm
155(4)	Recomputing total income for succeeding year(s) in respect of loss or depreciation recomputed under section 147	Within 4 years from end of financial year in which order under section 147 is passed
155(5)	With drawing development rebate under section 33 if asset is sold within 8 years or reserve is misutilized	Within 4 years from end of previous year in which sale took place or reserve is so misutilized
155(4A)	Withdrawing investment allowance allowed under section 32A if—
	(a) asset is sold/transferred within 8 years from end of previous year in which it was acquired	Within 4 years from end of previous year in which sale/transfer took place
	(b) investment allowance reserve is not utilised for acquiring new asset within 10 years of end of previous year in which asset was acquired	Within 4 years from end of said 10 years
	(c) reserve is misutilised before expiry of 10 years of end of previous year in which asset was acquired	Within 4 years from end of previous year in which amount is so misutilised
155(5A)	Withdrawing development allowance under section 33A if within 8 years land is sold or reserve is misutilised	Within 4 years from end of previous year in which sale took place or reserve is so misutilised
155(5B)	Recomputing total income where weighted deduction in respect of expenditure on scientific research under section 35(2B) is deemed to have been wrongly allowed	Within 4 years from end of previous year in which period allowed for completion of scientific research programme has expired
155(7)	Recomputing distributable income and additional tax liability under section 104	Within 4 years from end of financial year in which final order was passed
155(7B)	Recomputing deemed capital gains under section 47A	Within 4 years from end of previous year in which capital asset is converted into stock-in-trade or in which parent company/holding company ceases to have 100 per cent shareholding in subsidiary company
155(10A)	Amending order of assessment so as to exclude unadjusted amount of capital gain on long-term capital asset not chargeable under section 54E(1)	Within 4 years from end of financial year in which original assessment is made
155(11)	Amending order of assessment to exclude capital gain not chargeable under section 54H	Within 4 years from end of previous year in which compensation was received
155(11A)	Amending order of assessment so as to allow deduction under section 10A, 10B or 10BA in respect of income received in or brought into India	Within 4 years from end of previous year in which such income is received in, or brought into, India
155(12)	Amending order of assessment to allow deduction under section 80-O	Within 4 years from end of previous year in which income is received or brought into India ; however, the period from 1-4-1988 to 30-9-1991 shall be excluded
155(13)	Amending order of assessment so as to allow deduction u/s 80HHB, 80HHC, 80HHD, 80HHE, 80-O, 80R, 80RR or 80RRA in respect of convertible foreign exchange earnings not brought into India initially but received or brought into India subsequently	Within 4 years from the end of the previous year in which such income is so received in, or brought into India
155(14)	Amending order of assessment/intimation under section 143(1) to give credit for tax deducted/collected not given earlier on ground that tax deduction/collection certificate was not filed with return	Relevant tax deduction/collection certificate should be produced before Assessing Officer within 2 years from the end of assessment year in which income is assessable.
155(14A)	Amending assessment order or intimation or deemed intimation so as to give foreign tax credit under section 90/90A/91 (earlier it was not given because the quantum of foreign tax was disputed)	Within 6 months from the end of the month in which dispute is settled (applicable from the April 1, 2018)
155(15)	Amending order of assessment so as to compute capital gain by taking the full value of consideration to be the value adopted/assessed by stamp duty authorities (section 50C) as revised in appeal/revision/reference	Within 4 years from the end of the previous year in which the order revising the value was passed in that appeal/revision/reference
155(16)	Amending order of assessment so as to compute capital gain on compulsory acquisition, etc., by taking the full value of consideration to be the compensation/consideration as reduced by any court, tribunal or other authority	Within 4 years from the end of the previous year in which order reducing compensation was passed
155(17)	Amending order of assessment so as to withdraw deduction under section 80RRB allowed earlier where by a subsequent order of the Controller/High Court the patent is revoked or the name of the assessee is excluded from the patents register as patentee in respect of that patent	Within 4 years from the end of the previous year in which order of Controller/High Court was passed
155(19)	Re-computing the total income of a co-operative society (engaged in the business of manufacture of sugar) for the previous year 2014-15 (or any earlier year) to allow deduction of expenditure (which was initially disallowed) incurred at a price which is equal to or less than the price fixed/approved by the Govt. for that year	On or before March 31, 2027
155(20)	Submitting application by an assessee who has reported income on accrual basis but tax is deducted and paid by the deductor in later financial year	Within 2 years from the end of the financial year in which such tax was deducted
	Amending order of assessment/intimation in the aforesaid case to allow credit of tax deducted at source in the relevant assessment year	Within 4 years from the end of the financial year in which tax has been deducted
158AA(1) (w.e.f. 01.06.2015)	Direction by Principal Commissioner or Commissioner to assessing officer to make an application to the ITAT if any question of law arising in the case of an assessee for any assessment year is identical with a question of law arising in his case for another assessment year which is pending before the Supreme Court.	Within 60 days from the date of receipt of order of the Commissioner (Appeals).
158AA(4) (w.e.f. 01.06.2015)	Direction by Principal Commissioner or Commissioner to Assessing officer to file an appeal to ITAT if order of CIT(A) is not in conformity with order of the Supreme Court which decided on the question of law in the other case in favour of revenue	Within 60 days from the date of communication of order of the Supreme Court
Section 158AB(2)	Making an application to the Appellate Tribunal/jurisdiction High Court	Within 120 days from the date of receipt of order of the commissioner (appeals)/ Appellate Tribunal
Section 158AB(5) (w.e.f. 01.06.2015)	Filing appeal to the Tribunal/jurisdictional High Court	Within 60 days to the Tribunal (or 120 days to the High Court ) from the date on which the order of the High Court/ Supreme Court (in the other case) is communicated to the Principal Commissioner/Commissioner.
158BE(1)⁴	Passing order under section 158BC	Within 12 months from the end of the month in which the last of the authorisation for search was executed. Note: The limitation period shall be 24 months if reference is made to Transfer Pricing Officer.
158BE(3)	Passing order of block assessment in the cases of other person	Within 12 months from the end of the month in which the notice under section 158BC in pursuance of section 158BD was issued to such other person. Note: The limitation period shall be 24 months if reference is made to Transfer Pricing Officer.
158BFA(3)(C)⁴	Passing order imposing penalty under section 158BFA(2)	Before the expiry of the Financial Year in which the proceedings, in the course of which action for the imposition of penalty has been initiated are completed or before the end of 6 months from the end of the Financial Year in which the order of the CIT(A)/ITAT is received by the PCIT/CIT, whichever expires later.
Section 158BFA(3)(d)	Passing order imposing penalty where the assessee is subject matter of section 263 revision	Within 6 months from the end of the Financial Year in which revision order is passed
158BFA(3)(e)	Passing order imposing penalty in any other case	Before the expiry of the Financial Year in which the proceedings in the course of which the notice for the imposition of penalty has been issued are completed or 6 months from the end of the Financial Year in which the notice for imposition of penalty is issued whichever expires later
160(1), Explanation 1	Filing declaration by trustee(s) for converting 'oral trust' into 'trust declared by a duly executed instrument in writing'	Within 3 months from date of declaration of 'oral trust'
Section 170A	Furnishing modified return in the case of business reorganization where prior to the order of High court/ Tribunal /Adjudicating authority, a return of income was furnished by successor under section 139	Within 6 months from the end of the month in which said order of High court/Tribunal/Adjudicating authority is issued
172(3)	Return of full amount paid or payable to non-resident owner or charterer of ship towards passenger fares, freight, etc., to be furnished by master of ship to Assessing Officer	Before departure of ship from any port in India, or within 30 days thereafter if permitted by Assessing Officer
172(4A)	Passing order, assessing income and determining tax payable thereon under section 172(4).	Within 9 months from end of financial year in which return under section 172(3) is furnished (by 31-12-2008 where return is furnished before 1-4-2007)
172(7)	Submission of claim by owner or charterer of ship that assessment be made and tax payable by him be determined in accordance with other provisions of the Act	Before expiry of assessment year relevant to previous year in which ship has departed from Indian port
176(3)	Giving notice of discontinuance of business/profession to Assessing Officer	Within 15 days of discontinuance
178(1)	Giving notice of appointment as liquidator to Assessing Officer	Within 30 days of appointment
178(2)	Notifying liquidator as to amount of tax payable by company	Within 3 months from date on which Assessing Officer receives notice of appointment of liquidator
184	Filing certified copy of partnership deed	Along with return of income of the firm
192	Filing return of deduction of tax from contributions paid by the trustees of an approved superannuation fund	Within 2 months from end of financial year
197A(2)	Uploading of declaration received by Deductor in Form No. 15G/15H from deductee on the e-filing site (www.incometaxindiaefiling.gov.in)	15 days from the end of first, second and third quarter 30 days from the end of fourth quarter.
200(1)	Paying tax deducted at source under sections 192 to 196D	Within time limit as prescribed under rule 30
200(2A)	In case of an office of the Government, where TDS has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer, etc., shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars as may be prescribed.	Within such time as may be prescribed.
200(3)	Preparation and filing of prescribed statements of tax deducted for periods ending on June 30, September 30, December 31 and March 31	On or before 31st July, 31st October, 31st January of the financial year in respect of quarter ending 30th June, 30th September and 31st December respectively and in respect of quarter ending 31st March, on or before 31st May of the financial year immediately following the financial year in which deduction is made
200(3)	Furnishing of challan-cum-statement in respect to deduction of tax at source under sections 194-IA, 194-IB, 194M or 194S	Within thirty days from end of month in which deduction is made
200(3)	Filing of correction statement of TDS	Within 6 years from the end of the Financial Year in which TDS statement is required to be furnished (applicable with effect from 01-04-2025)
200A	Intimation under section 200A(1)	Within one year from end of financial year in which statement is filed
201(3)	Order deeming a person to be an assessee in default for failure to deduct whole or any part of tax from a person resident in India Note: w.e.f. 01-04-2025, this provision shall be applicable to non-resident also.	Within 7 years (within 6 years from 01-04-2025) from the end of the financial year in which payment is made or credit is given or 2 years from the end of the financial year in which the correction statement is delivered, whichever is later.
203	Issuance of certificate of tax deducted at source	Form No. 16 : By 15th June of the financial year immediately following the financial year in which income was paid and tax deducted.
		Form No. 16A: On or before 15th August, 30th November, 30th February of the financial year in respect of quarters ending 30th June, 30th September & 31st December respectively of the financial year. For quarter ending 31st March, on or before 15th June of the financial year immediately following the financial year in which deduction is made
		Form No. 16B (Section 194-IA) : Within 15 days from the due date for furnishing challan cum statement in Form No. 26QB (i.e. within 30 days from the end of month in which deduction is made)
		Form No. 16C (Section 194-IB): Within 15 days from the due date for furnishing challan cum statement in Form No. 26QC (i.e. within 30 days from the end of month in which deduction is made)
		Form No. 16D (Section 194M): Within 15 days from the due date for furnishing challan cum statement in Form No. 26QD (i.e. within 30 days from the end of month in which deduction is made)
203A	Payer to apply to Assessing Officer for allotment of Tax Deduction and Collection Account Number	Within one month from the end of the month in which tax was deducted or collected, as the case may be
206(4)	Rectifying defect in return filed under section 206(2)	Within 15 days from the date of intimation of the defect by Assessing Officer or extended time
206A(1)	Furnishing of prescribed statement in respect of payment of interest to residents without TDS by banking company, co-operative society or public company referred to in proviso to section 194A(3)(i)	On or before 31st July, 31st October, 31st January and 30th June following res-pective quarter of financial year
206C(3)	Payment of tax collected from the respective buyers of specified goods under section 206C(1) to the credit of Central Government or as the Board directs	Within time limit as prescribed in rule
206C(3) (proviso)	Preparation and filing of prescribed statements of tax collected for periods ending on June 30, September 30, December 31 and March 31	On or before 15th July, 15th October, 15th January in respect of first three quarters of the financial year. In respect of quarter ending 31st March, on or before 15th May of the financial year immediately following the financial year in which collection is made (Form No. 27EQ)
206C(3A)	In case of an office of the Government, where TCS has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer, etc., shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars as may be prescribed.	Within such time as may be prescribed.
206C(3B)	Submission of correction statement of TCS	Within 6 years from the end of the financial year in which TCS statement is required to be furnished. Note: Applicable with effect from 01-04-2025.
206C(5)	Person collecting tax under section 206C(1) from respective buyers to give them a certificate in Form No. 27D about the amount and rate of tax collected, etc.	On or before 30th July, 30th October, 30th January of the financial year in respect of the quarter ending 30th June, 30th September and 31st December of the financial year. For quarter ending 31st March, on or before 30th May of the financial year immediately following the financial year in which collection is made
206C(5D)	Rectifying defect in return filed	Within 15 days from the date of intimation of the defect by Assessing Officer or extended time
206CB (effective from 1/6/2015)	Intimation under section 206CB(1), i.e., intimation regarding processing of TCS statement	Within 1 year from end of financial year in which statement is filed.
206C(7A)	Passing an order to treat a person a assessee-in-default	Within 6 years from the end of FY in which tax was collectable; or2 years from the end of FY in which the TCS correction statement is filed, whichever is late. Note: Applicable with effect from 01-04-2025.
211(1)	Payment of advance tax in specified installments:
	(a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD):
	(i) At least 15 per cent	On or before 15^th June
	(ii) At least 45 per cent	On or before 15^th September
	(iii) At least 75 per cent	On or before 15^th December
	(iv) At least 100 per cent	On or before 15^th March
	(b) In case of eligible assessee as referred to in section 44AD and section 44ADA:
	100 per cent	On or before 15^th March
	Note: Any advance tax paid on or before 31^st day of March shall also be treated as paid during the same financial year.
	[Inserted by the Finance Act, 2016 w.e.f. 1-6-2016]
211(2)	Payment of the appropriate part or whole amount of advance tax as demanded under section 210(3) and (4) after the due dates of instalment	On or before each date specified in section 211(1) falling after date of service of demand notice
220(1)	Payment of amount other than advance tax in response to notice under section 156	Within 30 days of service of demand notice or within date extended on request or within shorter period, specified in revenue's interest
220(2A)	Under accepting/rejecting the application of assessee for waiver of interest payable under 220(2)	Within 12 months from the end of the month in which the application is received [Applicable from 01-06-2016]
Section 239A(4)	Passing order pertaining to the application by the AO	Within 6 months from the end of the month in which the application is received by the AO (w.e.f. 1st April 2022)
239(A)(1)	Filing application by deductor before the AO for refund of tax deducted at source under section 195.	Within 30 days from the payment of TDS to the central government (w.e.f. 1st April 2022)
245C(1)	Application for settlement of case to Settlement Commission	At any stage during the pendency of a case before the Assessing Officer
245(2)	Withholding refund of earlier years if assessment or reassessment of subsequent year is pending with Dept.	Up to not more than 60 days from the date on which assessment or reassessment of subsequent year is made
245C(1E)	Application for settlement before Settlement Commission under sub-section (1) where books of account, documents, etc., have been seized	Not before 120 days of seizure
245D(1)	Rejecting/allowing the application for settlement	Within 7 days, notice shall be issued to the applicant to justify admission of his application; within 14 days from the receipt of application, the order pertaining to rejecting/allowing the application shall be made
245D(2B)	Calling report by the Settlement Commission from Principal Commissioner/Commissioner	Within 30 days from the date of receipt of application
245D(2B)	Submission of report by the Principal Commissioner/Commissioner to Settlement Commission	Within 30 days from the date of communication from the Settlement Commission
245D(2C)	Declaring application as invalid by the Settlement Commission	Within 15 days from the date of receipt of report from the Principal Commissioner/Commissioner
245D(3)	Furnishing a report by the Principal Commissioner/Commissioner to the Settlement Commission in the matters covered by the application	Within 90 days from the date of receipt of communication from the Settlement Commission
245D(4A)	Passing order of settlement	Within 18 months from the end of the month in which the application was made, if application is made on or after 1-6-2010
245D(6B)	Passing of order by the Settlement Commission to amend an order passed by it in order to rectify any mistake apparent from records.	a) Within 6 months from end of the month in which order was passed; or b) Within 6 months from end of the month in which an application for rectification has been made by the Principal Commissioner or the Commissioner or the applicant, as the case may be. No application for rectification shall be made by the Principal Commissioner or the Commissioner or the applicant after the expiry of 6 months from the end of the month in which an order is passed by the Settlement Commission
245D(7)	Completion of proceedings where settlement becomes void as provided in section 245D(6)	Within 2 years from the end of the financial year in which the settlement becomes void
245E, proviso	Reopening of completed proceedings by Settlement Commission if an application is made before 1-6-2007	Reopening of proceeding is not possible where period between end of assessment year to which proceeding relates and the date of application for settlement under section 245C exceeds 9 years
245Q(3)	Withdrawing application for advance ruling	Within 30 days from date of application
245M	Withdrawal of pending application filed before Income tax Settlement Commission	Within 3 months from date of commencement of Finance Act, 2021
Section 245MA(2A)	Passing order by the AO in conformity with the direction contained in the order of dispute resolution Committee	Within 1 month from the end of the month in which the order of Dispute Resolution Committee is received by the AO
245R(6)	Pronouncement of advance ruling by authority	Within 6 months of receipt of application
249(2)/(3)	Filing appeal to Joint Commissioner (Appeals)/Commissioner (Appeals)—
	(a) relating to tax deducted at source under section 195(1)	Within 30 days from date of payment of tax or within extended time
	(b) relating to any assessment/ penalty	Within 30 days from date of service of demand notice or within extended time
	(c) in any other case	Within 30 days from date of communication of order or within extended time
250(6A)	Disposal of appeal by Commissioner (Appeals)	One year from end of financial year in which appeal is filed (where it is possible)
253(3)/(5)	Filing appeal to Tribunal	*Upto 30-09-2024* Within 60 days from date on which order sought to be appealed against is communicated or within extended time With effect from 01-10-2024 Within 2 months from the end of the month in which order sought to be appealed against is communicated or within extended time
253(4)/(5)	Filing memo of cross-objections to Tribunal	Within 30 days of receipt of notice of filing appeal or within extended time
254(2)	Rectification of apparent mistake by Tribunal	Within 6 months from the end of the month in which the order was passed
		[Inserted by the Finance Act, 2016 w.e.f. 1-6-2016]
254(2A)	Disposal of appeal by Appellate Tribunal filed under sub-section (1)/(2) of section 253	4 years from end of financial year in which appeal is filed (where it is possible).
		Where an order of stay is made in proceedings relating to appeal filed under section 253(1), Tribunal shall dispose of appeal within 180 days from date of such order or within extended time not exceeding 365 days including original period of 180 days, failing which stay order shall stand vacated; this will be so even if delay in disposing of the appeal is not attributable to assessee.
256(1)	(i) Filing application to Tribunal requiring it to refer to High Court any question of law	Within 60 days of service of Tribunal's order under section 254 or within extended period not exceeding 30 days
	(ii) Drawing up statement of case and referring it to High Court by Tribunal	Within 120 days of receipt of application
256(2)	Filing application to High Court if Tribunal refuses to state case	Within 6 months from date of service of notice of refusal to state case
256(3)	Application by assessee for claiming refund of fee after Tribunal's refusal to state case	Within 30 days from date of receipt of refusal notice
260A	Filing appeal to High Court against order of Tribunal	Within 120 days of date of communication of order⁵
263(2)	Revising orders prejudicial to revenue by Principal Commissioner/Commissioner	Within 2 years from end of financial year in which order sought to be revised was passed
263(3)	Revision by Principal Commissioner/Commissioner of orders passed pursuant to any finding or direction by Tribunal, National Tax Tribunal, High Court or Supreme Court	No time limit
264(2)	Revision of orders by Principal Commissioner/Commissioner on his own motion (not prejudicial to assessee)	Within 1 year of order sought to be revised
264(3)	Filing revision petition to Principal Commissioner/Commissioner (order not to be prejudicial to assessee)	Within 1 year from date of communication of order sought to be revised or date of his knowledge in respect thereof or within extended time
264(6)	Passing order on revision application made by assessee on or after 1-10-1998	Within 1 year from the end of the financial year in which application is made
270AA(2)	Application to the Assessing Officer to grant immunity for imposition of penalty under section 270A and initiation of proceedings under section 270A section 276C/276CC	Within one month from the end of the month in which such order is received (applicable from April 1, 2017)
270AA(4)	Passing an order by the Assessing Officer granting immunity from passing of penalty, etc., under 270AA(3)	Within one month from the end of the month in which application under section 270AA(1) is received (applicable from April 1, 2017)
271GB(4)(b)	Failure to inform the prescribed authority and furnish correct report to avoid penalty under section 271GB(4)	Within 15 days of discovery of inaccuracy (applicable from the assessment year 2017-18)
273A(4A)	Passing order under 273A(4) accepting/rejecting assessee's application (in full or part) to reduce or waive penalty	Within 12 months from the end of the month in which such application is received by Principal CIT/CIT (such order can be passed on or before May 31, 2017 in case of application pending as on June 1, 2016)
273AA(3A)	Passing order by Principal CIT/CIT accepting/rejecting assessee's application (in full or part) to grant immunity from penalty	Within 12 months from the end of the month in which such application is received by Principal CIT/CIT (such order can be passed on or before May 31, 2017 in case of application pending as on June 1, 2016)
275	Imposing penalties under Chapter XXI :
	(a) In a case where appeal is filed to Joint Commissioner (Appeals)/Commissioner (Appeals) and Joint Commissioner (Appeals)/Commissioner (Appeals) passes the order on or after 01-06-2003	Before the expiry of financial year in which proceedings which give rise to penalty proceedings are completed, or within 12 months from end of the Financial year in which the order of Joint Commissioner (Appeals)/Commissioner (Appeals) is received by the Chief Commissioner/Commissioner, whichever period expires later.
	(b) in a case where appeal is filed to Commissioner (Appeals)/Tribunal	However, where order is in appeal before Commissioner (Appeals) who passes appellate order on or after 1-6-2003, order imposing penalty shall be passed before expiry of financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed, or within one year from the end of the financial year in which the order of the Commissioner (Appeals) is received by the Principal Chief Commissioner/Principal Commissioner/Chief Commissioner/Commissioner, whichever is later.
	(c) in a case where relevant assessment or other order is subject- matter of revision under section 263 (or section 264)	Within 6 months from the end of month in which revision order is passed
	(d) in any other case	Before expiry of financial year in which proceedings (in course of which action for imposition of penalty has been initiated) are completed, or within 6 months from end of month in which penal action is initiated, whichever is later
275(1A)	Imposing/enhancing/reducing/cancelling penalty or dropping penalty proceedings on the basis of revised assessment after giving effect to appellate/court/revision order in a case where relevant order is subject matter of appeal to Commissioner (Appeals)/Tribunal/High Court/Supreme Court or revision and an order imposing or enhancing or reducing or cancelling penalty or dropping proceedings for imposition of penalty is passed before the order of the Commissioner (Appeals)/Tribunal/High Court/Supreme Court is received by the Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner or order of revision is passed	Within 6 months from end of the month in which order of Commissioner (Appeals)/Tribunal/ High Court/Supreme Court is received by the Principal Chief Commissioner/Principal Commissioner/Chief Commissioner/Commissioner or order of revision is passed
281B(2)	Provisional attachment of assets of assessee	Attachment shall cease to have effect after expiry of six months (extendable upto 2 years or 60 days after date of order of assessment or reassessment, whichever is later) from date of order
281B(4)	Submitting report by Valuation Officer to determine fair value of property provisionally attached by AO. [Inserted by the Finance Act, 2016 w.e.f. 1-6-2016]	Within a period of 30 days from the date of receipt of such reference
281B(5)	An order revoking the provisional attachment of property on furnishing of Bank Guarantee. (subject to conditions) [Inserted by the Finance Act, 2016 w.e.f. 1-6-2016]	- Within 45 days from the date of receipt of the bank guarantee, where a reference to the Valuation Officer has been made or - Within 15 days from the date of receipt of bank guarantee in any other case.
281B(7)	Invoking Bank Guarantee by AO if the assessee fails to renew the guarantee or fails to furnish a new Guarantee [Inserted by the Finance Act, 2016 w.e.f. 1-6-2016]	15 days before the expiry of the Guarantee.
285	Preparation and delivery of statement in prescribed form containing prescribed particulars by non-resident having liaison office in India set up in accordance with guidelines issued by RBI under FEMA, 1999	Within 60 days from end of the financial year
285A	Section 285A provides for reporting by an Indian concern if following two conditions are satisfied: a) Shares or interest in a foreign company or entity derive substantial value, directly or indirectly, from assets located in India; and b) Such foreign company or entity holds such assets in India through or in such Indian concern. In this case, the Indian entity shall furnish information relating to the off-shore transaction having the effect of directly or indirectly modifying its ownership structure or control, to the prescribed income-tax authority in such manner, as may be prescribed.	Within such time as may be prescribed.
285B	Furnishing of statement by film producers	Within 30 days from end of financial year or within 30 days from date of completion of film, whichever is earlier
285BA⁶	Filing of Statement of financial transaction	On or before 31st May immediately following financial year in which transaction is registered or recorded
285BA(4)⁶	Rectifying defect in return filed under section 285BA as required by prescribed income-tax authority	Within 1 month (or such extended time as may be allowed on application) from date of intimation of defect
285BA(5)⁶	Furnishing of return under section 285BA in response to notice from prescribed income-tax authority by person who has failed to furnish return within time	Within period not exceeding 60 days from date of service of notice.
286(2)	Furnishing a report for every reporting accounting year by a parent entity or the alternate reporting entity, resident in India, to prescribed authority in respect of the international group of which it is a constituent	Within 12 months from the end of said reporting accounting year
286(6)	Producing information/document to the prescribed authority for the purpose of determining accuracy of report furnished by any reporting entity	Within 30 days of receipt of notice (prescribed authority on an application made by reporting entity may extend the period of 30 days by further period not exceeding 30 days)(applicable from the assessment year 2017-18)
Securities Transaction Tax [Finance (No. 2) Act, 2004]
101	Filing of return by recognised stock exchange or mutual fund	On or before June 30 after the end of financial year
102	Making assessment	Within 2 years from the end of relevant financial year
103	Rectification of mistake	Within one year from the end of the financial year in which the order sought to be amended was passed
110	Filing appeal to Commissioner (Appeals)	Within 30 days from the date of receipt of order of the AO
111	Filing appeal to Tribunal	Within 60 days from the date on which the order sought to be appealed is communicated.
Rule 18 of Appellate Tribunal Rules	Filing of paper book	At least a day before the date of hearing of the appeal along with the proof of service of a copy of the same on the other side at least a week before
Schedule II Part I, Rule 3	Execution of certificate drawn up	Not before 15 days after date of service of notice under rule 2
Schedule II Part I, Rule 14	Filing of application by officer holding the sale relating to recovery from defaulting purchasers	Within 15 days from date of resale
Schedule II Part II, Rule 25(5)	Attachment of growing crop which does not admit of being stored	Not less than 20 days before it is likely to be fit to be cut or gathered
Schedule II Part II, Rule 40	Sale of movable property (other than property, subject to speedy and natural decay and property in relation to which expense of keeping it in custody is likely to exceed its value)	Not before 15 days from date on which copy of sale proclamation was affixed in TRO's office
Schedule II Part III, Rule 55	Sale of immovable property without written consent of defaulter	Not until expiry of 30 days from date on which proclamation of sale has been affixed on the property or in the office of the TRO, whichever is later
Schedule II Part III, Rule 57	Payment of full amount of purchase money on sale of immovable property	Within 15 days from date of sale
Schedule II Part III, Rule 60	Application to set aside sale of immovable property on deposit of specified sum	Within 30 days from date of sale
Schedule II Part III, Rule 61	Application to set aside sale of immovable property on ground of non-service of notice or irregularity	Within 30 days from date of sale
Schedule II Part III, Rule 62	Application for setting aside sale on ground that defaulter had no saleable interest	Within 30 days from date of sale
Schedule II Part III, Rule 68B	Sale of immovable property	Within 7 years from end of financial year in which order giving rise to demand, etc., has become conclusive.
		In case of re-sale, period shall be extended by one year. Further, the CBDT may further extend the period of 7 years for another period of 3 years.
Schedule IV Part A, Rule 13	Appeal by employer against order of Principal Chief Commissioner/ Principal Commissioner/Chief Commissioner or Commissioner refusing to recognise or withdrawing recognition from a provident fund	Within 60 days of such order
Schedule IV Part B, Rule 8	Appeal by employer against order of Principal Chief Commissioner/ Principal Commissioner/Chief Commissioner or Commissioner refusing to approve or withdrawing approval granted to a superannuation fund	Within 60 days of such order
Schedule IV Part C, Rule 8	Appeal by employer against order of Principal Chief Commissioner/ Principal Commissioner/Chief Commissioner or Commissioner refusing to approve or withdrawing approval granted to a gratuity fund	Within 60 days of such order

1. Omitted with effect from assessment year 2015-16.

2. Fringe Benefit Tax is not leviable from assessment year 2010-11.

3. With effect from assessment year 2016-17, university, educational institutes or hospitals as referred to in section 10(23C)(iiiab) and (iiiac) shall also file return of income if its total income before exemption under Section 10 exceeds the maximum amount which is not chargeable to tax.

4. Provisions of Chapter XIV-B shall not apply where search is initiated, etc., after 31-5-2003.

5. High Court can admit an appeal after the expiry of the said period of one hundred and twenty days if it is satisfied that there was sufficient cause for not filing the appeal within the said period.

6. With effect from assessment year 2015-16 a new section 285BA has been substituted which provides for the furnishing of statement of financial transaction or reportable account within such time and in the form and manner, as may be prescribed.

The time prescribed for rectifying a defect in the return filed as required by the prescribed income-tax authority is 30 days from such intimation or such extended time as may be allowed.

Where a person who is required to furnish a statement under the new section has not furnished it, the prescribed income-tax authority may serve upon the person a notice requiring him to furnish the statement within 30 days from the date of service of the notice. Any inaccuracy in the statement so furnished has to be informed to the income-tax authority within 10 days and the correct information furnished in the prescribed manner.

* The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 has amended various sections of the Income-tax Act, 1961. Readers are requested to please check the relevant document from below link:

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020

[As amended by Finance (No. 2) Act, 2024]

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Gold & Silver Rates

[Updated upto Finance (No.2) Act, 2024]

Gold and silver rates for the current year, last ten assessment years and on April 1, 1981/2001

Assessment year/ valuation date	Gold rates¹ (995 standard 24 carats) (per 10 gms.)	Silver rates (9,9960 touch) (per 1 kg.)	Assessment year/ valuation date	Gold rates¹ (995 standard 24 carats) (per 10 gms.)	Silver rates (9,9960 touch) (per 1kg.)
	Rs.	Rs.		Rs.	Rs.
1-4-1981	1,670	2,715	Asst. Yr. 2011-12
			31-3-2011	20,775	56,900
			Asst. Yr. 2012-13
			31-3-2012	28,040	56,290
			Asst. Yr. 2013-14
			31-3-2013	29,610	54,030
			Asst. Yr. 2014-15
			31-3-2014	28,470	43,070
Asst. Yr. 2008-09			Asst. Yr. 2015-16
31-3-2008	12,125	23,625	31-3-2015	26,245	37,825
Asst. Yr. 2009-10			Asst. Yr. 2016-17
31-3-2009	15,105	22,165	31-3-2016	28,340	36,990
Asst. Yr. 2010-11			Asst. Yr. 2017-18
31-3-2010	16,320	27,255	31-3-2017	28,950	42,000
			Asst. Yr. 2018-19
			31-3-2018	30,680	38,355
			Asst. Yr. 2019-20
			31-3-2019	31,640	37,245
			Asst. Yr. 2020-21
			31-3-2020	43,000	39,200
			Asst. Yr. 2021-22
			31-3-2021	44,013	62,862
			Asst. Yr. 2022-23
			31-3-2022	51,278	66,990
			Asst. Yr. 2023-24
			31-03-2023	59,512	71,582
			Asst. Yr. 2024-25
			31-03-2024	66,983	74,127

Notes :

1. Value of gold contained in gold ornaments should be reduced by 14 to 20 per cent of ruling rates of standard gold, as per the practice prevalent in the bullion market and the amount of reduction has to be worked out in the following manner :

	Plain gold bangles and ornaments made of solid gold	Other gold ornaments
Difference in value between 24 carats of standard gold and 22 carats of gold ornaments (gold ornaments are generally made of 22 carats of gold)	8.33%	8.33%
Soldering made of copper, silver, etc., used in making ornaments	2.5% to 5%	8.33%
Shortage of gold in melting, mint charges payable to Government, expenditure on freight, insurance, etc., of sending gold ornaments to approved mint for conversion into standard gold bars	1.25%	1.25%
Margin of profit of the dealer when ornaments are sold in market	2%	2%
Total reduction	14.08% to 16.58%	19.91%

2. Silverwares, utensils, etc., is liable for wealth-tax.

3. Conversion table:

10 grams	=	0.857 tola	1 tola	=	11.664 grams
1 kilogram	=	85.734 tolas	10 tolas	=	116.638 grams

[As amended by Finance (No. 2)Act, 2024]

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CA's Referencer

Depreciation Rates

Depreciation Rates (for Income Tax)
As applicable w.e.f A.Y. 2003-04 onwards

[As amended by Finance (No. 2) Act, 2024]

*Block of assets*	*Depreciation allowance as percentage of written down value*
	*AYs 2003-04 to 2005-06*	*AY 2006-07 to AY 2017-18*	*AY 2018-19 onwards*
1	2	3	4
*PART A*
TANGIBLE ASSETS
I. BUILDING [See Notes 1 to 4 below the Table]
(1) Buildings which are used mainly for residential purposes except hotels and boarding houses	5	5	5
(2) Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below	10	10	10
(3) Buildings acquired on or after the 1st day of September, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infra- structure facilities under clause (i) of sub-section (4) of section 80-IA	100	100	40
(4) Purely temporary erections such as wooden structures	100	100	40
II. FURNITURE AND FITTINGS
Furniture and fittings including electrical fittings [See Note 5 below the Table]	15	10	10
III. MACHINERY AND PLANT
(1) Machinery and plant other than those covered by sub-items (2), (3) and (8) below : [See Note 5A below the Table]	25	15	15
(2) (i) Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990 except those covered under entry (ii);	20	15	15
(ii) Motor cars, other than those used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020.	-	-	30
(3) (i) Aeroplanes - Aeroengines	40	40	40
(ii) (a) Motor buses, motor lorries and motor taxis used in a business of running them on hire other than those covered under entry (b).	40	30	30
(b) Motor buses, motor lorries and motor taxis used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020.	-	-	45
(iii) Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table]	40	40	40
(iv) New commercial vehicle which is acquired on or after the 1st day of October, 1998, but before the 1st day of April, 1999 in replacement of condemned vehicle of over 15 years of age and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table]	60	60	40
(v) New commercial vehicle which is acquired on or after the 1st day of April, 1999 but before the 1st day of April, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the 1st day of April, 2000 for the purposes of business or profession in accordance with the second proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table]	60	60	40
(vi) New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession [See Note 6 below the Table]	50	50	40
(via) New commercial vehicle which is acquired on or after the 1st day of January, 2009 but before the 1st day of October, 2009 and is put to use before the 1st day of October, 2009 for the purposes of business or profession [See paragraph 6 of the Notes below this Table]	—	50	40
(vii) Moulds used in rubber and plastic goods factories	40	30	30
(viii) Air pollution control equipment, being—
(a) Electrostatic precipitation systems	100	100	40
(b) Felt-filter systems
(c) Dust collector systems
(d) Scrubber-counter current/venturi/packed bed/cyclonic scrubbers
(e) Ash handling system and evacuation system
(ix) Water pollution control equipment, being—
(a) Mechanical screen systems	100	100	40
(b) Aerated detritus chambers (including air compressor)
(c) Mechanically skimmed oil and grease removal systems
(d) Chemical feed systems and flash mixing equipment
(e) Mechanical flocculators and mechanical reactors
(f) Diffused air/mechanically aerated activated sludge systems
(g) Aerated lagoon systems
(h) Biofilters
(i) Methane-recovery anaerobic digester systems
(j) Air floatation systems
(k) Air/steam stripping systems
(l) Urea Hydrolysis systems
(m) Marine outfall systems
(n) Centrifuge for dewatering sludge
(o) Rotating biological contractor or bio-disc
(p) Ion exchange resin column
(q) Activated carbon column

(x) (a) Solidwaste control equipments being - caustic/lime/chrome/mineral/cryolite recovery systems	100	100	40
(b) Solidwaste recycling and resource recovery systems	100	100	40
(xi) Machinery and plant, used in semi-conductor industry covering all integrated circuits (ICs) (excluding hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration/very large scale integration (LSI/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below	40	30	30
(xia) Life saving medical equipment, being—
(a) D.C. Defibrillators for internal use and pace makers	40	40	40
(b) Haemodialysors
(c) Heart lung machine
(d) Cobalt Therapy Unit
(e) Colour Doppler
(f) SPECT Gamma Camera
(g) Vascular Angiography System including Digital subtraction Angiography
(h) Ventilator used with anaesthesia apparatus
(i) Magnetic Resonance Imaging System
(j) Surgical Laser [See Note 5B]
(k) Ventilators other than those used with anaesthesia
(l) Gamma knife
(m) Bone Marrow Transplant Equipment including silastic long standing intravenous catheters for chemotherapy
(n) Fibreoptic endoscopes including Paediatric resectoscope/audit resectoscope, Peritoneoscopes, Arthoscope, Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope, Fibreoptic Flexible Oesophago Gastroscope
(o) Laparoscope (single incision)
(4) Containers made of glass or plastic used as re-fills	50	50	40
(5) Computers including computer software [See note 7 below the Table]	60	60	40
(6) Machinery and plant, used in weaving, processing and garment sector of textile industry, which is purchased under TUFS on or after the 1st day of April, 2001 but before the 1st day of April, 2004 and is put to use before the 1st day of April, 2004 [See Note 8 below the Table]	50	50	40
(7) Machinery and plant, acquired and installed on or after the 1st day of September, 2002 in a water supply project or a water treatment system and which is put to use for the purpose of business of providing infrastructure facility under clause (i) of sub-section (4) of section 80-IA [See Notes 4 and 9 below the Table]	100	100	40
(8) (i) Wooden parts used in artificial silk manufacturing machinery	100	100	40
(ii) Cinematograph films - bulbs of studio lights	100	100	40
(iii) Match factories - Wooden match frames	100	100	40
(iv) Mines and quarries :
(a) Tubs, winding ropes, haulage ropes and sand stowing pipes	100	100	40
(b) Safety lamps	100	100	40
(v) Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material	100	100	40
(vi) Flour mills - Rollers	80	80	40
(vii) Iron and steel industry - Rolling mill rolls	80	80	40
(viii) Sugar works - Rollers	80	80	40
(ix) Energy saving devices, being—
A. Specialised boilers and furnaces:
(a) Ignifluid/fluidized bed boilers	80	80	40
(b) Flameless furnaces and continuous pusher type furnaces
(c) Fluidized bed type heat treatment furnaces
(d) High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers)
B. Instrumentation and monitoring system for monitoring energy flows:
(a) Automatic electrical load monitoring systems	80	80	40
(b) Digital heat loss meters
(c) Micro-processor based control systems
(d) Infra-red thermography
(e) Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters
(f) Maximum demand indicator and clamp on power meters
(g) Exhaust gases analyser
(h) Fuel oil pump test bench
C. Waste heat recovery equipment:
(a) Economisers and feed water heaters	80	80	40
(b) Recuperators and air pre-heaters
(c) Heat pumps
(d) Thermal energy wheel for high and low temperature waste heat recovery
D. Co-generation systems:
(a) Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers	80	80	40
(b) Vapour absorption refrigeration systems
(c) Organic rankine cycle power systems
(d) Low inlet pressure small steam turbines
E. Electrical equipment:
(a) Shunt capacitors and synchronous condenser systems	80	80	40
(b) Automatic power cut off devices (relays) mounted on individual motors
(c) Automatic voltage controller
(d) Power factor controller for AC motors
(e) Solid state devices for controlling motor speeds
(f) Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water)
(g) Series compensation equipment
(h) Flexible AC Transmission (FACT) devices - Thyristor controlled series compensation equipment
(i) Time of Day (ToD) energy meters
(j) Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient region
(k) Remote terminal units/intelligent electronic devices, computer hardware/software, router/bridges, other required equipment and associated communication systems for supervisory control and data acquisition systems, energy management systems and distribution management systems for power transmission systems
(l) Special energy meters for Availability Based Tariff (ABT)
F. Burners:
(a) 0 to 10 per cent excess air burners	80	80	40
(b) Emulsion burners
(c) Burners using air with high pre-heat temperature (above 300°C)
G. Other equipment:
(a) Wet air oxidation equipment for recovery of chemicals and heat	80	80	40
(b) Mechanical vapour recompressors
(c) Thin film evaporators
(d) Automatic micro-processor based load demand controllers
(e) Coal based producer gas plants
(f) Fluid drives and fluid couplings
(g) Turbo charges/super-charges
(h) Sealed radiation sources for radiation processing plants
(x) Gas cylinders including valves and regulators	80	60	40
(xi) Glass manufacturing concerns - Direct fire glass melting furnaces	80	60	40
(xii) Mineral oil concerns:
(a) Plant used in field operations (above ground) distribution - Returnable packages	80	60	40
(b) Plant used in field operations (below ground), but not including kerbside pumps including underground tanks and fittings used in field operations (distribution) by mineral oil concerns	80	60	40
(c) Oil wells not covered in clauses (a) and (b) (with effect from the assessment year 2016-17)	-	15	15
(xiii) Renewal energy devices being—
(a) Flat plate solar collectors	80	80	40
(b) Concentrating and pipe type solar collectors
(c) Solar cookers
(d) Solar water heaters and systems
(e) Air/gas/fluid heating systems
(f) Solar crop driers and systems
(g) Solar refrigeration, cold storages and air-conditioning systems
(h) Solar steels and desalination systems
(i) Solar power generating systems
(j) Solar pumps based on solar-thermal and solar-photovoltaic conversion
(k) Solar-photovoltaic modules and panels for water pumping and other applications
(l) Windmills and any specially designed devices which run on wind-mills installed on or before March 31, 2012
(m) Any special devices including electric generators and pumps running on wind energy installed on or before March 31, 2012
(n) Biogas plant and biogas engines
(o) Electrically operated vehicles including battery powered or fuel-cell powered vehicles
(p) Agricultural and municipal waste conversion devices producing energy
(q) Equipment for utilising ocean waste and thermal energy
(r) Machinery and plant used in the manufacture of any of the above sub-items
(9) (i) Books owned by assessees carrying on a profession—
(a) Books, being annual publications	100	100	40
(b) Books, other than those covered by entry (a) above	60	60	40
(ii) Books owned by assessees carrying on business in running lending libraries	100	100	40
IV. SHIPS
(1) Ocean-going ships including dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with wooden hull	25	20	20
(2) Vessels ordinarily operating on inland waters, not covered by sub-item (3) below	25	20	20
(3) Vessels ordinarily operating on inland waters being speed boats [See Note 10 below the Table]	25	20	20
PART B
INTANGIBLE ASSETS
Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature not being goodwill of businesss of profession	25	25	25

Notes:

1. "Buildings" include roads, bridges, culverts, wells and tubewells.

2. A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential purposes is not less than sixty-six and two-third per cent of its total built-up floor area and shall include any such building in the factory premises.

3. In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in Explanation 1 of clause (ii) of sub-section (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected. Where the structure is constructed or the work is done by way of extension of any such building, the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

4. Water treatment system includes system for desalination, demineralisation and purification of water.

5. "Electrical fittings" include electrical wiring, switches, sockets, other fittings and fans, etc.

5A. Rate of depreciation shall be 40% if conditions of Rule 5(2) are satisfied.

5B. Applicable from the Assessment year 2004-05.

6. "Commercial vehicle" means "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and "medium passenger motor vehicle" but does not include "maxi-cab", "motor-cab", "tractor" and "road-roller". The expressions "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle", "medium passenger motor vehicle", "maxi-cab", "motor-cab", "tractor" and "road-roller" shall have the meanings respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

7. "Computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device.

8. "TUFS" means Technology Upgradation Fund Scheme announced by the Government of India in the form of a Resolution of the Ministry of Textiles vide No. 28/1/99-CTI of 31-3-1999.

9. Machinery and plant includes pipes needed for delivery from the source of supply of raw water to the plant and from the plant to the storage facility.

10. "Speed boat" means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometers per hour in still water and so designed that when running at a speed, it will plane, i.e., its bow will rise from the water.

Depreciation rates for power generating units

(applicable from the assessment year 1998-99

*Class of assets*	*Depreciation allowance as percentage of actual cost*
(a) Plant and Machinery in generating stations including plant foundations :—
(i) Hydro-electric	3.4
(ii) Steam electric NHRS & Waste heat recovery Boilers/plants	7.84
(iii) Diesel electric and Gas plant	8.24
(b) Cooling towers and circulating water systems	7.84
(c) Hydraulic works forming part of Hydro-electric system including :—
(i) Dams, spillways weirs, canals, reinforced concrete flumes and syphons	1.95
(ii) Reinforced concrete pipelines and surge tanks steel pipelines, sluice gates, steel surge (tanks), hydraulic control valves and other hydraulic works.	3.4
(d) Building and civil engineering works of permanent character, not mentioned above
(i) Office & showrooms	3.02
(ii) Containing Thermo-electric generating plant	7.84
(iii) Containing Hydro-electric generating plant	3.4
(iv) Temporary erection such as wooden structures	33.4
(v) Roads other than Kutcha roads	3.02
(vi) Others	3.02
(e) Transformers, transformer (Kiosk) sub-station equipment & other fixed apparatus (including plant foundations)
(i) Transformers (including foundations) having a rating of 100 kilo volt amperes and over	7.81
(ii) Others	7.84
(f) Switchgear including cable connections	7.84
(g) Lightning arrestor :
(i) Station type	7.84
(ii) Pole type	12.77
(iii) Synchronous condenser	5.27
(h) Batteries	33.4
(i) Underground cable including joint boxes and disconnectioned boxes	5.27
(ii) Cable duct system	3.02
(i) Overhead lines including supports :
(i) Lines on fabricated steel operating at nominal voltages higher than 66 kilo volts	5.27
(ii) Lines on steel supports operating at nominal voltages higher than 13.2 kilo volts but not exceeding 66 kilo volts	7.84
(iii) Lines on steel or reinforced concrete supports	7.84
(iv) Lines on treated wood supports	7.84
(j) Meters	12.77
(k) Self-propelled vehicles	33.40
(l) Air-conditioning plants :
(i) Static	12.77
(ii) Portable	33.40
(m) (i) Office furniture and fittings	12.77
(ii) Office equipments	12.77
(iii) Internal wiring including fittings and apparatus	12.77
(iv) Street light fittings	12.77
(n) Apparatus let on hire
(i) Other than motors	33.4
(ii) Motors	12.77
(o) Communication equipment :
(i) Radio and high frequency carrier system	12.77
(ii) Telephone lines and telephones	12.77
(p) Any other assets not covered above	7.69

Depreciation under Companies Act, 2013

¹SCHEDULE II²

(See section 123)

USEFUL LIVES TO COMPUTE DEPRECIATION

PART 'A'

1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity.

2. For the purpose of this Schedule, the term depreciation includes amortisation.

3. Without prejudice to the foregoing provisions of paragraph 1,—

³[(i) The useful life of an asset shall not be longer than the useful life specified in Part 'C' and the residual value of an asset shall not be more than five per cent of the original cost of the asset:

Provided that where a company uses a useful life or residual value of the asset which is different from the above limits, justification for the difference shall be disclosed in its financial statement.

(ii) For intangible assets, the provisions of the accounting standards applicable for the time being in force shall apply, except in case of intangible assets (Toll Roads) created under 'Build, Operate and Transfer', 'Build, Own, Operate and Transfer' or any other form of public private partnership route in case of road projects. Amortisation in such cases may be done as follows:—

(a) Mode of amortisation

	Amortisation Amount __________________________
	Cost of Intangible Assets (A)

Amortisation Amount =

Actual Revenue for the year (B)

____________________________________________________________________

Projected Revenue from Intangible Asset (till the end of the concession period) (C)

(b) Meaning of particulars are as follows :—

Cost of Intangible Assets (A)	=	Cost incurred by the company in accordance with the accounting standards.
Actual Revenue for the year (B)	=	Actual revenue (Toll Charges) received during the accounting year.
Projected Revenue from Intangible Asset (C)	=	Total projected revenue from the Intangible Assets as provided to the project lender at the time of financial closure/agreement.

The amortisation amount or rate should ensure that the whole of the cost of the intangible asset is amortised over the concession period.

Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the concession period.

Cost of creation of Intangible Assets	:	Rs. 500 Crores
Total period of Agreement	:	20 Years
Time used for creation of Intangible Assets	:	2 Years
Intangible Assets to be amortised in	:	18 Years

Assuming that the Total revenue to be generated out of Intangible Assets over the period would be Rs. 600 Crores, in the following manner:—

Year No.	Revenue (In Rs. Crores)	Remarks
Year 1	5	Actual
Year 2	7.5	Estimate*
Year 3	10	Estimate*
Year 4	12.5	Estimate*
Year 5	17.5	Estimate*
Year 6	20	Estimate*
Year 7	23	Estimate*
Year 8	27	Estimate*
Year 9	31	Estimate*
Year 10	34	Estimate*
Year 11	38	Estimate*
Year 12	41	Estimate*
Year 13	46	Estimate*
Year 14	50	Estimate*
Year 15	53	Estimate*
Year 16	57	Estimate*
Year 17	60	Estimate*
Year 18	67.5	Estimate*
Total	600

'*' will be actual at the end of financial year.

Based on this the charge for first year would be Rs. 4.16 Crore (approximately) (i.e. Rs. 5/Rs. 600 × Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16 Crore/Rs. 500 Crore × 100) is the amortisation rate for the first year.

Where a company arrives at the amortisation amount in respect of the said Intangible Assets in accordance with any method as per the applicable Accounting Standards, it shall disclose the same.]

PART 'B'

4. The useful life or residual value of any specific asset, as notified for accounting purposes by a Regulatory Authority constituted under an Act of Parliament or by the Central Government shall be applied in calculating the depreciation to be provided for such asset irrespective of the requirements of this Schedule.

PART 'C'

5. Subject to Parts A and B above, the following are the useful lives of various tangible assets:

*Nature of assets*	*Useful Life*
I. Buildings [NESD]
(a) Buildings (other than factory buildings) RCC Frame Structure	60 Years
(b) Buildings (other than factory buildings) other than RCC Frame Structure	30 Years
(c) Factory buildings	-do-
(d) Fences, wells, tube wells	5 Years
(e) Others (including temporary structure, etc.)	3 Years
II. Bridges, culverts, bunders, etc. [NESD]	30 Years
III. Roads [NESD]
(a) Carpeted roads
(i) Carpeted Roads—RCC	10 Years
(ii) Carpeted Roads—other than RCC	5 Years
(b) Non-carpeted roads	3 Years
IV. Plant and Machinery
(i) General rate applicable to plant and machinery not covered under special plant and machinery
(a) Plant and Machinery other than continuous process plant not covered under specific industries	15 Years
⁴[(b) Continuous process plant for which no special rate has been prescribed under (ii) below [NESD]	25 Years]
(ii) Special Plant and Machinery
(a) Plant and Machinery related to production and exhibition of Motion Picture Films
1. Cinematograph films—Machinery used in the production and exhibition of cinematograph films, recording and reproducing equipments, developing machines, printing machines, editing machines, synchronizers and studio lights except bulbs	13 Years
2. Projecting equipment for exhibition of films	-do-
(b) Plant and Machinery used in glass manufacturing
1. Plant and Machinery except direct fire glass melting furnaces —
Recuperative and regenerative glass melting furnaces	13 Years
2. Plant and Machinery except direct fire glass melting furnaces — Moulds [NESD]	8 Years
3. Float Glass Melting Furnaces [NESD]	10 Years
(c) Plant and Machinery used in mines and quarries—Portable under ground machinery and earth moving machinery used in open cast mining [NESD]	8 Years
(d) Plant and Machinery used in Telecommunications [NESD]
1. Towers	18 Years
2. Telecom transreceivers, switching centres, transmission and other network equipment	13 Years
3. Telecom—Ducts, Cables and optical fibre	18 Years
4. Satellites	-do-
(e) Plant and Machinery used in exploration, production and refining oil and gas [NESD]
1. Refineries	25 Years
2. Oil and gas assets (including wells), processing plant and facilities	-do-
3. Petrochemical Plant	-do-
4. Storage tanks and related equipment	-do-
5. Pipelines	30 Years
6. Drilling Rig	-do-
7. Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc.	8 Years
8. Loggers	-do-
(f) Plant and Machinery used in generation, transmission and distribution of power [NESD]
1. Thermal/Gas/Combined Cycle Power Generation Plant	40 Years
2. Hydro Power Generation Plant	-do-
3. Nuclear Power Generation Plant	-do-
4. Transmission lines, cables and other network assets	-do-
5. Wind Power Generation Plant	22 Years
6. Electric Distribution Plant	35 Years
7. Gas Storage and Distribution Plant	30 Years
8. Water Distribution Plant including pipelines	-do-
(g) Plant and Machinery used in manufacture of steel
1. Sinter Plant	20 Years
2. Blast Furnace	-do-
3. Coke ovens	-do-
4. Rolling mill in steel plant	-do-
5. Basic oxygen Furnace Converter	25 Years
(h) Plant and Machinery used in manufacture of non-ferrous metals
1. Metal pot line [NESD]	40 Years
2. Bauxite crushing and grinding section [NESD]	-do-
3. Digester section [NESD]	-do-
4. Turbine [NESD]	-do-
5. Equipments for Calcination [NESD]	-do-
6. Copper Smelter [NESD]	-do-
7. Roll Grinder	40 Years
8. Soaking Pit	30 Years
9. Annealing Furnace	-do-
10. Rolling Mills	-do-
11. Equipments for Scalping, Slitting, etc. [NESD]	-do-
12. Surface Miner, Ripper Dozer, etc., used in mines	25 Years
13. Copper refining plant [NESD]	-do-
(i) Plant and Machinery used in medical and surgical operations [NESD]
1. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, Cat- Scan, Ultrasound Machines, ECG Monitors, etc.	13 Years
2. Other Equipments.	15 Years
(j) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD]
1. Reactors	20 Years
2. Distillation Columns	-do-
3. Drying equipments/Centrifuges and Decanters	-do-
4. Vessel/storage tanks	-do-
(k) Plant and Machinery used in civil construction
1. Concreting, Crushing, Piling Equipments and Road Making Equipments	12 Years
2. Heavy Lift Equipments—
Cranes with capacity of more than 100 tons	20 Years
Cranes with capacity of less than 100 tons	15 Years
3. Transmission line, Tunneling Equipments [NESD]	10 Years
4. Earth-moving equipments	9 Years
5. Others including Material Handling /Pipeline/Welding Equipments [NESD]	12 Years
(l) Plant and Machinery used in salt works [NESD]	15 Years
V. Furniture and fittings [NESD]
(i) General furniture and fittings	10 Years
(ii) Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries; welfare centres; meeting halls, cinema houses; theatres and circuses; and furniture and fittings let out on hire for use on the occasion of marriages and similar functions.	8 Years
VI. Motor Vehicles [NESD]
1. Motor cycles, scooters and other mopeds	10 Years
2. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire	6 Years
3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire	8 Years
4. Motor tractors, harvesting combines and heavy vehicles	-do-
5. Electrically operated vehicles including battery powered or fuel cell powered vehicles	8 Years
VII. Ships [NESD]
1. Ocean-going ships
(i) Bulk Carriers and liner vessels	25 Years
(ii) Crude tankers, product carriers and easy chemical carriers with or without conventional tank coatings	20 Years
(iii) Chemicals and Acid Carriers :
(a) With Stainless steel tanks	25 Years
(b) With other tanks	20 Years
(iv) Liquified gas carriers	30 Years
(v) Conventional large passenger vessels which are used for cruise purpose also	-do-
(vi) Coastal service ships of all categories	-do-
(vii) Offshore supply and support vessels	20 Years
(viii) Catamarans and other high speed passenger for ships or boats	-do-
(ix) Drill ships	25 Years
(x) Hovercrafts	15 Years
(xi) Fishing vessels with wooden hull	10 Years
(xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes	14 Years
2. Vessels ordinarily operating on inland waters—
(i) Speed boats	13 Years
(ii) Other vessels	28 Years
VIII. Aircrafts or Helicopters [NESD]	20 Years
IX. Railways sidings, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD]	15 Years
X. Ropeway structures [NESD]	15 Years
XI. Office equipment [NESD]	5 Years
XII. Computers and data processing units [NESD]
(i) Servers and networks	6 Years
(ii) End user devices, such as, desktops, laptops, etc.	3 Years
XIII. Laboratory equipment [NESD]
(i) General laboratory equipment	10 Years
(ii) Laboratory equipments used in educational institutions	5 Years
XIV. Electrical Installations and Equipment [NESD]	10 years
XV. Hydraulic works, pipelines and sluices [NESD]	15 Years

Notes.—

1. "Factory buildings" does not include offices, godowns, staff quarters.

2. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed.

3. The following information shall also be disclosed in the accounts, namely:—

(i) depreciation methods used; and

(ii) the useful lives of the assets for computing depreciation, if they are different from the life specified in the Schedule.

4. Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately.

5. ⁵[***]

6. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.

7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date—

(a) shall be depreciated over the remaining useful life of the asset as per this Schedule;

(b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.

8. "Continuous process plant" means a plant which is required and designed to operate for twenty-four hours a day.

1. Corresponds to Schedule XIV of the 1956 Act.

2. Enforced with effect from 1-4-2014.

3. Substituted for clauses (i) to (iii) vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to their substitution, clauses (i) to (iii) read as under :

"(i) In case of such class of companies, as may be prescribed and whose financial statements comply with the accounting standards prescribed for such class of companies under section 133 the useful life of an asset shall not normally be different from the useful life and the residual value shall not be different from that as indicated in Part C, provided that if such a company uses a useful life or residual value which is different from the useful life or residual value indicated therein, it shall disclose the justification for the same.

(ii) In respect of other companies the useful life of an asset shall not be longer than the useful life and the residual value shall not be higher than that prescribed in Part C.

(iii) For intangible assets, the provisions of the Accounting Standards mentioned under sub-para (i) or (ii), as applicable, shall apply."

4. Substituted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to its substitution, clause (b) read as under :

"(b) Continuous process plant for which no special rate has been prescribed under (ii) below [NESD]

8 Years"

5. Omitted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to its omission, Paragraph 5 read as under :

"5. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset."

[As amended by Finance (No. 2) Act, 2024]

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