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Part 3 - Direct Taxes
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59th year of continuous publicationDIRECT
TAXES
BCAS
Referencer0PART-3
2021-22
Mathematics
Direct Taxes
Trigonometry
Zero added to Maths
Advanced Mathematics
Madhava’s Series
Bakhshali Manuscript
Mathematics ����
Indian mathematics emerged in ~1200 BCE with mantras from the early Vedic period invoking powers of ten
from a hundred all the way up to a trillion, and providing evidence of the use of arithmetic operations.
Indian m~thematicians such as Aryabhata, Baudhanya, Bhaskara, Brahmagupta, Madhava, Pingala,
Varahamihira, etc. made tremendous contributions to the study of the concept of zero as a number, negative
numbers, arithmetic, and algebra.
It was India who gifted the world the concept of Zero and other advanced mathematical concepts including
trigonometry which Indian astronomers used to calculate the relative distances between the Earth and the
Moon and the Earth and the Sun. These mathematical concepts were transmitted to the Middle East, China,
and Europe and led to further developments that now form the foundations of many advancements in areas of
0mathematics.
Direct Taxes
Direct Taxes
Contents
Subject Page
Rates of Income Tax 3.1
Return of Income 3.9
Interest 3.16
Penalties 3.21
Audit Reports under the Income-tax Act 3.29
Accountant’s Reports under the Income-tax Act 3.30
Rectifications 3.31
Appeals 3.32
Revision 3.40
TDS Chart 3.42
Important Due Dates under Direct Taxes 3.64
Clubbing Provisions 3.67
Exempt Income 3.69
Section 14A : Disallowance of Expenditure incurred in relation to income exempt from tax 3.92
Charitable Trusts 3.94
Income from House Property 3.104
Salaries 3.106
Rates of Depreciation 3.113
Taxation of Firms 3.117
Capital Gains 3.119
Capital Gains on Specific Transfers 3.123
Exempt Capital Gains 3.133
Full value of consideration in respect of transfer of Immovable Property held as business asset 3.143
– Section 43CA
Gifts Treated as Income 3.144
Presumptive Taxation 3.152
Set-off and carry forward of losses 3.154
Amalgamation and Demergers 3.157
BCAS 3.iii
Referencer
2021-2022
Direct Taxes Page
3.161
Subject 3.165
Minimum Alternate Tax (MAT) 3.167
Alternate Minimum Tax (AMT) 3.173
Statement of Financial Transactions or Reportable Account Annual Information Return 3.178
Co-operative Society – Taxation 3.182
Direct Tax Vivad Se Vishwas Act, 2020 3.183
Dispute Resolution Scheme 3.185
Faceless Schemes 3.220
Deductions and Rebates 3.223
Deemed Dividend 3.240
Income Computation & Disclosure Standard 3.270
Interpretation of Taxing Statutes 3.283
Investment Planner 3.284
Legal Maxims 3.295
Permanent Account Number (PAN) 3.300
Search/Survey – Rights and Duties
Tax Deduction and Collection Account Number (TDCAN)
3.iv BCAS
Referencer
2021-2022
Rates of Income Tax
Rates of Income Tax
A. Normal Rates Health and Education Cess @ 4% leviable on
tax including surcharge
1. Tax Rates for Individuals/HUF/AOP/BOI
(other than individual or HUF exercising Notes:
option to pay tax as per the provisions of
Section 115BAC) i. * Threshold limit for a resident individual
who is of the age of 60 years or
For A.Y. 2021-22 & 2022-23 (Refer Notes) more but less than 80 years will be
` 3,00,000/- and for a resident individual who
Income Rate (%) is of the age of 80 years or more will be `
Up to ` 250,000* NIL 5,00,000/-
` 250,001 to ` 500,000 5%
` 500,001 to ` 1,000,000 20% ii. Rebate up to ` 12,500/- from tax if taxable
Above ` 1,000,000 30% income is up to ` 5,00,000/-, to a resident
individual
Rates of Surcharge
iii. Marginal relief available.
Sr. Surcharge in case Total Rate of
No. Income exceeds Surcharge iv. Individuals and HUFs also have the option to
pay tax in accordance with the provisions of
(%) Section 115BAC.
(a) ` 50,00,000 (including the 10%
2. Tax Rates for Individual / HUF exercising
income under the provisions option to pay tax as per the provisions of
of Section 111A and Section Section 115BAC
112A)
For A.Y. 2021-22 & A.Y. 2022-23 (Refer
(b) ` 1,00,00,000 (including the 15% Notes)
income under the provisions
of Section 111A and Section Income Rate (%)
112A)
Up to ` 250,000 NIL
(c) ` 2,00,00,000 (excluding the 25% ` 250,001 to ` 500,000 5%
income under the provisions
of Section 111A and Section ` 500,001 to ` 750,000 10%
112A)
` 750,001 to ` 1,000,000 15%
(d) ` 5,00,00,000 (excluding the 37% ` 1,000,001 to ` 1,250,000 20%
income under the provisions
of Section 111A and Section ` 1,250,001 to ` 1,500,000 25%
112A)
Above ` 1,500,000 30%
Notes:
(e) ` 2,00,00,000 (including the 15% i. The new scheme is optional and the
income under the provisions assessees will have to opt for being covered
of Section 111A and Section by the new scheme.
112A), if it is not covered by
(c) & (d) above ii. Individual or HUF not having any business
income -
Surcharge on the amount of income-tax payable
in accordance with the provisions of Section a. The option is required to be exercised
111A and 112A shall not exceed 15% along with the filing of the return of
BCAS 3.1
Referencer
2021-2022
Direct Taxes
income under section 139(1) for the i. Set off of loss under the head income
year from house property against other
heads – section 71
b. The option can be exercised for every
previous year. j. Additional depreciation – section 32(1)
(iia)
iii. Individual or HUF having business income –
k. Deduction under sections 32AD, 33AB
a. The option is required to be exercised and 33ABA
on or before the due date of filing the
return of income and such option once l. Specified deduction for donations or
exercised shall apply for that previous for expenditure on scientific research
year and to all subsequent years. – section 35(1)(ii)/(iia)/(iii) or section
35(2AA)
b. If the assessee having business income
has opted to be governed by the new m. Weighted deduction for expenditure
scheme, then, subsequently, he can on specified business / agricultural
opt out only once and thereafter, he extension project – section 35AD and
will never be eligible to opt for the new section 35CCC
scheme again except when he ceases
to have any business income. n. Standard deduction for family pension
– 57(iia)
iv. The above concessional tax rates can be
opted after foregoing certain exemptions / o. Deductions under Chapter VI-A (such
deductions such as: as section 80C, 80D, 80 TTA, 80TTB,
80G etc.) other than the following:-
a. Leave Travel Concession – section
10(5) i. 80CCD(2) – employer contribution
in notified pension scheme
b. House Rent Allowance – section
10(13A) ii. 80JJAA – employment of new
employees
c. Specified allowances exempt under
section 10(14) (allowances granted iii. 80LA – IFSC centre
to employees other than transport
allowance, conveyance allowance, p. Exemption in respect of voucher
per-diems and travel and transfer granted for free food and beverages
allowance)
q. Any exemption or deduction for
d. Allowances to MPs / MLAs – section allowances or perquisites provided
10(17) under any other law
e. Clubbed income of minor upto ` 1,500 – v. There is no separate higher threshold
section 10(32) for senior and very senior citizens in the
optional scheme.
f. Exemption for unit in SEZ – section
10AA vi. Surcharge and Cess remain unchanged.
g. Standard and other deductions vii. Once this option is exercised, provisions
(including profession tax) from salary – relating to Alternate Minimum Tax and Credit
section 16 relating to the same will not be applicable.
h. Interest in respect of Self Occupied BCAS
Property – section 24(b) Referencer
2021-2022
3.2
Rates of Income Tax
3. Tax Rates for Firms (including Limited Liability Partnership)
Asst. Year Tax % Surcharge % Health & Total %
Education
Cess%
2021-22 30 0/12 4 31.20/34.944
2022-23 30 0/12 4 31.20/34.944
Surcharge applicable in case of firm having a total income exceeding ` 1,00,00,000/-.
Notes:
i. Marginal relief available.
4. Tax Rates for Domestic Companies (not exercising option to pay tax as per the provisions
of Section 115BAA or Section 115BAB)
Asst. Tax Surcharge Health & Total % Conditions
Year % % Education
Cess%
2021-22 30 0/7/12 4 31.2/33.384/34.944 Turnover or gross receipts for the
domestic company in previous year
2018-19 exceeds ` 400 crore.
25 0/7/12 4 26/27.82/29.12 Turnover or gross receipts for the
domestic company in previous year
2018-19 doesn’t exceed ` 400
crore.
2022-23 30 0/7/12 4 31.2/33.384/34.944 Turnover or gross receipts for the
domestic company in previous year
2019-20 exceeds ` 400 crore.
25 0/7/12 4 26/27.82/29.12 Turnover or gross receipts for the
domestic company in previous year
2019-20 doesn’t exceed ` 400
crore.
Surcharge @ 7% if total income above ` 1,00,00,000/- and Surcharge @ 12% applicable if total
income above ` 10,00,00,000/-.
Notes:
i. Marginal relief available.
5. Tax Rates for Domestic Companies exercising an option to pay tax as per the provisions
of Section 115BAA (effective from A.Y. 2020-21)
Type of Income Tax % Surcharge % Health & Education Cess% Total %
Total Income 22 10 4 25.168
Surcharge is applicable irrespective of the amount of the total income
The income to which any other provisions of Chapter XII are applicable shall be charged to tax at the
rates as provided in those respective provisions. It shall be subject to surcharge of 10% and Health
& Education Cess of 4%.
The provisions of Section 115JAA and Section 115JB shall not apply to the companies exercising
option to pay tax under Section 115BAA
BCAS 3.3
Referencer
2021-2022
Direct Taxes
Applicability 35(2AA) or Section 35(2AB) or Section 35AD
This option is available to any domestic company or Section 35CCC or Section 35CCD or
which satisfies certain conditions and which Chapter VI-A (other than the provisions of
exercises the option on or before the due date Section 80JJAA or 80M or 80LA).
specified under Section 139(1) for furnishing 2. Carried forward losses or unabsorbed
returns of income for any previous year relevant depreciation which are attributable to any
to the assessment year commencing on or after of the above referred deductions (including
1st April, 2020. deemed losses or depreciation under
Conditions Section 72A) shall not be available for set off
1. The total income of the company shall be and it shall be deemed that full effect have
been given to such losses or depreciation.
computed without any deductions under the
provisions of Section 10AA or Section 32(1) 3. The total income shall be computed by
(iia) i.e. additional depreciation or Section claiming depreciation under Section 32 (other
32AD or Section 33AB or Section 33ABA than additional depreciation) which shall be
or Section 35(1)(ii), (iia) or (iii) or Section determined in a prescribed manner.
6. Tax Rates for Domestic Companies exercising an option to pay tax as per the provisions
of Section 115BAB (effective from A.Y. 2020-21)
Type of Income Tax % Surcharge Health & Total %
% Education
Cess%
Income derived from or incidental to manufacturing or 15 10 4 17.16
production of an article or thing
Income which is neither derived from nor incidental to 22 10 4 25.168
manufacturing or production of an article or thing
Short-term capital gain derived from transfer of a 22 10 4 25.168
capital asset on which no depreciation is allowable
Excess profits determined by the AO under sub- 30 10 4 34.32
section (6)
Surcharge is applicable irrespective of the amount of the total income
The income to which any other provisions of Chapter XII are applicable shall be charged to tax at
the rates as provided in those respective provisions. It shall be subject to surcharge of 10% and
Health & Education Cess of 4%.
The provisions of Section 115JB shall not apply to the companies exercising option to pay tax under
Section 115BAB
Applicability Conditions
This option is available to a domestic company 1. Manufacturing or production of an article or
which has been set-up and registered on or after
1st October, 2019 and engaged in the business of thing has been commenced on or before
manufacture or production of any article or thing. 31st March, 2023.
The option is required to be exercised on or before
the due date specified under Section 139(1) for 2. The business is not formed by splitting up,
furnishing the first of the returns of income for any or the reconstruction, of a business already
previous year relevant to the assessment year in existence.
commencing on or after 1st April, 2020.
3. The company does not use any machinery
or plant previously used for any purpose.
The usage of second-hand machinery
3.4 BCAS
Referencer
2021-2022
Rates of Income Tax
or plant to the extent of 20% of the total • Printing of books or production of
value of machinery or plant and usage of cinematograph film; or
machinery or plant which were previously • Any other business as may be notified
used outside India are permitted. by the Central Government in this
behalf
4. The company does not use any building
previously used as a hotel or a convention
centre in respect of which deduction under 6. The total income of the company shall be
Section 80-ID has been allowed. computed without any deductions under the
5. The company is not engaged in any provisions of Section 10AA or Section 32(1)
business other than the business of (iia) i.e. additional depreciation or Section
manufacture or production of any article 32AD or Section 33AB or Section 33ABA
or thing and research in relation to, or Section 35(1)(ii), (iia) or (iii) or Section
or distribution of, such article or thing 35(2AA) or Section 35(2AB) or Section
manufactured or produced by it. The 35AD or Section 35CCC or Section 35CCD
company engaged in the business of or Chapter VI-A (other than the provisions of
generation of electricity shall be eligible to Section 80JJAA or 80M).
opt for taxation as per the provisions of this 7. Carried forward losses or unabsorbed
Section. The following businesses would not depreciation which are deemed to be so
be considered as a business of manufacture under Section 72A and which are attributable
or production of any article or thing: to any of the above referred deductions shall
• Development of computer software in not be available for set off and it shall be
any form or in any media; deemed that full effect have been given to
• Mining; such losses or depreciation.
• Conversion of marble blocks or similar 8. The total income shall be computed by
claiming depreciation under Section 32
items into slabs;
(other than additional depreciation) which
• Bottling of gas into cylinder; shall be determined in a prescribed manner.
7. Tax Rates for foreign companies (on income other than Royalty and Fees for Technical
Services)
Asst. Year Tax % Surcharge % Health & Education Cess% Total %
2021-22 40 0/2/5 4 41.60/42.432/43.68
2022-23 40 0/2/5 4 41.60/42.432/43.68
Notes:
i. Surcharge @ 2% if total income is above ` 1,00,00,000/ and up to ` 10,00,00,000/- and @ 5%
if total income above ` 10,00,00,000/-.
ii. Marginal relief available.
8. Dividend Distribution Tax Tax % Surcharge % Health & Education Total %
Income 17.647 Cess %
(i) Under Section 115-O 12 4 20.5552941
Other than deemed dividend
u/s. 2(22)(e) 3.5
BCAS
Referencer
2021-2022
Direct Taxes
Income Tax % Surcharge % Health & Education Total %
30 Cess %
(ii) U/s. 115-O applicable to 20
deemed dividend u/s. 2(22)(e) 12 4 34.944
(iii) Buy-back of shares by
domestic companies 12 4 23.296
Notes:
i. Parent company will be allowed set off of dividend received from its subsidiary in computing its
dividend distribution tax subject to certain conditions.
ii. Earlier Dividend Distribution tax was applicable on buy back of shares only in case of unlisted
shares, now, it has been extended to listed shares as well.
iii. The domestic company is not required to pay Dividend Distribution Tax under Section 115-O on
the dividend declared, distributed or paid on or after 1st April, 2020.
9. Tax Rates for Co-operative Society (not exercising option to pay tax as per the provisions
of Section 115BAD)
Income A.Ys 2021-22 & 2022-23 Rate % Health Total %
Education Cess
Up to ` 10,000 10 4 10.40
` 10,001 to ` 20,000 20 4 20.80
` 20,001 and above 30 4 31.20
Surcharge of 12% applicable, if total income exceeds ` 1,00,00,000/-.
Notes:
i. Marginal relief available.
10. Tax Rates for Resident Co-operative Society exercising option to pay tax as per the
provisions of Section 115BAD (effective from A.Y. 2021-22)
Type of Income Tax % Surcharge % Health & Education Cess% Total %
Total Income 22 10 4 25.168
Surcharge is applicable irrespective of the amount of the total income
The income to which any other provisions of Chapter XII are applicable shall be charged to tax at
the rates as provided in those respective provisions. It shall be subject to surcharge of 10% and
Health & Education Cess of 4%.
The provisions of Section 115JC and Section 115JD shall not apply to the co-operative societies
exercising option to pay tax under Section 115BAD
Applicability relevant to the assessment year commencing on
This option is available to any resident co- or after 1st April, 2021.
operative society which satisfies certain conditions
and which exercises the option on or before Conditions
the due date specified under Section 139(1) for 1. The total income of the co-operative society
furnishing returns of income for any previous year
shall be computed without any deductions
3.6 BCAS
Referencer
2021-2022
Rates of Income Tax
under the provisions of Section 10AA or b. On other assets and equity shares, units
Section 32(1)(iia) i.e. additional depreciation except falling in (a) above for A.Ys. 2021-
or Section 32AD or Section 33AB or Section 2022 and 2022-23.
33ABA or Section 35(1)(ii), (iia) or (iii) or
Section 35(2AA) or Section 35(2AB) or Income Tax on Long Term Capital Gains
Section 35AD or Section 35CCC or Chapter
VI-A (other than the provisions of Section Resident Individual or HUF 20%
80JJAA or 80LA).
Domestic Companies 20%
2. Carried forward losses or unabsorbed
depreciation which are attributable to any of Non-residents 20%
the above referred deductions shall not be
available for set off and it shall be deemed NRIs (for gains u/s. 115E) 10%
that full effect have been given to such
losses or depreciation. Any other case 20%
3. The total income shall be computed by Surcharge and Health and Education Cess as
claiming depreciation under Section 32 applicable
(other than additional depreciation) which
shall be determined in a prescribed manner. Notes:
i. In case of Resident Individual and HUF,
where tax liability arises only because of the
inclusion of long term capital gains, tax to be
levied at 20% or 10% as the case may be,
on the excess over the minimum exemption
limit.
11. Income tax on unexplained income ii. No deduction under Chapter VIA (80C to
chargeable to tax u/s. 115BBE 80U).
Income Surcharge % Health & Total 2. Short Term Capital Gains
%
Tax % Education a. On Equity shares and units
Short term capital gains arising on transfer of
Cess %
equity shares on recognised stock exchange
60 25 4 78 in India or units of an Equity Oriented Mutual
Fund (if more than 65% of total proceeds
B. Special Rates of the fund are invested in equity shares),
and on which Securities Transaction Tax is
1. Long Term Capital Gains chargeable.
a. On Equity shares and units For All 15% plus (Health and Education
Long term capital gains arising on transfer Assessees Cess) as applicable
of equity shares on a recognised stock Notes:
exchange in India or units of an equity
oriented Mutual Fund (if more than 65% i. In case of resident individual and HUF, relief
of total proceeds of the fund are invested from STCG available in respect of the amount
in equity shares), and on which Securities by which the taxable income other than
Transaction Tax is chargeable. STCG falls short of Basic Exemption Limit.
For all Assessees A.Ys 2021-22 & 2022-23 ii. No deduction under Chapter VI-A (80C to
Up to ` 1,00,000 Nil 80U).
Above ` 1,00,000 10%
b. On Assets other than in (a) above
On Short Term Capital At normal slab rates
Gains on Assets other
than in (a) above
BCAS 3.7
Referencer
2021-2022
Direct Taxes
3. Minimum Alternate Tax payable by Companies – As a percentage of Book Profit
Type of companies Domestic Company Foreign Company
A.Y. 2021-22 & Below ` 1 crore Above ` Below ` 1 crore Above
AY. 2022-23 ` 1 crore to 10 crore ` 1 crore to ` 10
crore
` 10 ` 10
crore crore
Rate of Tax 15 15 15 15 15 15
Surcharge – 7 12 – 2 5
Health & Education Cess 4 4 4 4 4 4
Effective Rate 15.6 16.692 17.472 15.6 15.912 16.38
Notes: Services Centre and derives income in
convertible foreign exchange.
(i) MAT Credit allowed to be carried forward for
set off for 15 years. (iv) The provisions of Section 115JC are not
applicable to the person who has exercised
(ii) Marginal relief available. the option referred to under Section 115BAC
or 115BAD.
(iii) Rate of Tax will be 9% if the assessee is
a unit located in an International Financial 5. Advance Tax Advance Tax
Services Centre and derives income in Assessment Years Obligation (If tax
convertible foreign exchange. 2021-22 & 2022-23 payable exceeds `
(iv) The provisions of Section 115JB are Due Date of 10,000)
not applicable to the company who has Installment payable Amt. Payable as a % of
exercised the option referred to under on or before Tax (For all Assessee’s)
Section 115BAA or 115BAB. 15th June
15th September 15%
4. Alternate Minimum Tax (AMT) payable 15th December 30%
15th March 30%
by Non-Corporate - As percentage of Balance
Adjusted Total Income
A.Y’s 2021-22 & Below ` 1 Above ` 1
2022-23 crore crore
Rate of Tax 18.5 18.5 No advance tax to be paid by senior citizen if he/
she does not have income under head “Profit and
Surcharge – 12 Gains of Business or Profession”.
Health & Education 4 4
Cess An eligible assessee engaged in a business
referred in Section 44AD/44ADA is liable to pay
Effective Rate 19.24 21.5488 advance tax in a single instalment on or before
the 15th of March every financial year.
Notes:
(i) AMT credit allowed to be carried forward for *MAT also subject to Advance Tax. Refer Circular
set off for 15 years No. 13 of 2001, [252 ITR (St) 52]
(ii) Marginal relief available.
(iii) Rate of Tax will be 9% if the assessee is **AMT also subject to Advance tax.
a unit located in an International Financial
2
3.8 BCAS
Referencer
2021-2022
Return of Income
Return of Income
Obligation to file Return of Income
Sr. Assessee Conditions
No.
1. Firm (including LLP) Every Firm irrespective of earning income or
incurring loss
2. Company Every Company irrespective of earning income or
incurring loss
3. Assessee other than Company or Firm If his or its total income during the previous year
exceeds maximum amount not chargeable to
tax (see note below for Maximum Amount not
chargeable to tax for A.Y. 2021-22), without
considering deduction under sections 54, 54B,
54EC, 54F, 54G, 54GA and 54GB.
4. Charitable or religious trust If the total income in the previous year exceeds
the maximum amount not chargeable to tax
without giving effect to section 11 and section 12
5. • Research Association under section If the income exceeds maximum amount not
10(21) chargeable to tax without considering exemptions
• News Agency under section 10(22B) under respective provisions of section 10
• Association/Institution referred under
sections 10(23A) and 10(23B)
• Universities/Hospitals/Medical institutions
referred under various sub-clauses of
Section 10(23C) i.e.. (iiiad) or (iiiae) or
(iv) or (v) or (vi) or (via)
• Mutual Fund referred under section.
10(23D)
• Securitisation Trust referred under
section. 10(23DA)
• Venture Capital Company or Venture
Capital Fund under section 10(23FB)
• Trade Union referred under sections
10(24)(a) and 10(24)(b)
• Board/Trust/Commission referred under
section 10(46)
• Infrastructure Debt Fund referred under
section 10(47)
• Fund referred under section 10(23AAA)
• Investor Protection Fund referred under
section 10(23EC) or 10(23ED)
• Core Settlement Guarantee Fund
referred under section 10(23EE)
• Board or Authority referred under section
10(29A)
BCAS 3.9
Referencer
2021-2022
Direct Taxes
Sr. Assessee Conditions
No.
6. University, college or any other institution Required to furnish return of income/loss even if
referred to under section 35(1))(ii)/(iii) not required to furnish return of income under any
other provisions
7. Business Trust and Investment Fund Required to furnish return of income/loss even if
not required to furnish return of income under any
other provisions
8. Political Party Total income in the previous years without giving
effect to section 13A exceeds the maximum
amount not chargeable to income tax
9. Every person To whom notice under section 142(1) or 148 is
issued
10. Any resident person other than not ordinary Who has any asset (including financial interest
resident in any entity) located outside India or signing
authority in any account located outside India
11. Any person a. Who has deposited amounts exceeding
` 1 crore in one or more current accounts
maintained with a bank
b. Who has incurred expenditure of an amount
or aggregate of the amounts exceeding
` 2 lakh for himself or any other person for
travel to a foreign country
c. Who has incurred expenditure of an amount
exceeding ` 1 lakh towards consumption of
electricity
Maximum amount not chargeable to tax for A.Ys 2021-22 & 2022-23 Amount
Nature of assessee (`)
Individual being resident in India and less than 60 years, NRI, HUF, AOP, BOI, Artificial 2,50,000
Juridical Person 3,00,000
Individual being Senior Citizen resident in India (Completed 60 years or more but less
than 80 years any time during the previous year i.e. born after 1-4-1939 and before 5,00,000
2-4-1959)
Very Senior Citizen (Completed 80 years or more any time during the previous year i.e.
born before 2-4-1939)
No Obligation to File Return of Income
a. No obligation is incurred on the assessee referred in sections 115A(1), 115AC(1), 115BBA or
115D to file Return under section 139(1), if the person derives no other income other than those
specified in the above Sections. Further, tax deductible at source should be deducted thereon
from such income.
3.10 BCAS
Referencer
2021-2022
Return of Income
b. Resident senior citizens of the age of 75 or more have been exempted from filing of return of
income w.e.f. A.Y. 2022-23 subject to fulfilment of below conditions:
i. Such senior citizen should have only pension income. Additionally, such senior citizen may
also have interest income from the same bank in which he/ she is receiving the pension;
and
ii. Such senior citizen will be required to furnish a declaration to the specified bank.
Due Dates for filing Return of Income for A.Y. 2021-22
Sr. Nature of Assessee Due Date
No.
1. a. Every assessee who is required to furnish Transfer Pricing Audit Report 30th November
under section 92E in respect of international and specified domestic
transactions
b. Any partner of the Firm which are subjected to audit under section 92E
(Transfer Pricing Audit)
c. Spouse (governed by Portuguese Civil Code u/s 5A of the Act) of
partner, being a partner in a partnership firm subjected to audit under
section 92E (Transfer Pricing Audit)
2. a. Company other than company who is required to furnish Transfer 31st October
Pricing Audit Report under section 92E
b. Every assessee who is required to get accounts audited under Income-
tax Act/any other laws (other than those assessee who is required to
furnish Transfer Pricing Audit Report under section 92E)
c. Any partner of the Firm (including partner of LLP), where accounts of
such firm are subjected to audit under any law
d. Spouse (governed by Portuguese Civil Code u/s 5A of the Act) of partner,
being a partner in a partnership firm subjected to audit under any law
3. Other assessee not referred above 31st July
4. Filing of Belated return for all assessee 31st December
5. Filing of Revised return for all assessee 31st December
Return of Income to be verified by
Sr. Nature of Return of Income to be verified by
No. Assessee
1. Individual • Individual himself
• In case individual is not within India – by himself or by any other person
authorised through power of attorney
• In case individual is mentally incapacitated from attending of his affairs – by
his guardian or any person competent to act on his behalf
• For any other reason individual is unable to sign/verify return — by any
person authorised through power of attorney
BCAS 3.11
Referencer
2021-2022
Direct Taxes
Sr. Nature of Return of Income to be verified by
No. Assessee
• Karta
2. HUF • In case Karta is not within India or is mentally incapacitated from attending
the affairs – by any other adult member of such family
3. Indian • Managing director
resident
Company • In case managing director is not able to sign/verify for any unavoidable
reasons or where there is no managing director – by any other director or
any other person as prescribed under the Rules
• In case company is being wound up – by Liquidator
• In case management has been taken over by the Central or State
Government – by Principal Officer of the company
• In case of company whose application for Insolvency resolution has been
accepted – then by Insolvency Professional appointed by such adjudicating
authority
4. Non-resident • By any person holding valid power of attorney from a company to sign/verify
Company
5. Firm • Managing partner
• In case managing partner is not able to sign/verify for any unavoidable
reasons or where there is no managing partner – by any other partner, not
being a minor
6. LLP • Designated Partner
• In case designated partner is not able to sign/verify for any unavoidable
reasons or where there is no designated partner – by any other partner or
any other person as prescribed under the Rules
7. Local • Principal Officer
Authority
8. Political • Chief Executive Officer
Party
9. Any other • Any member of Association or the Principal Officer
Association
10. Any other • By that person or some person competent to act on his behalf
person
3.12 BCAS
Referencer
2021-2022
Return of Income
Forms for Return of Income for A.Y. 2021-22
ITR Applicable to
ITR 1 SAHAJ An individual (ordinarily resident in India) whose total income for the assessment
year 2020-21 includes:
(a) Income from Salary/Pension
(b) Income from One House Property (excluding brought forward and carried
forward losses).
(c) Income from Other Sources (excluding winning from lottery and income from
Race Horses or losses under this head)
Other conditions:
(d) Not having assets (including financial interest in any entity) located outside India
or signing authority in any account located outside India
(e) Has not claimed any relief u/s. 90 or 90A or has not claimed deduction u/s. 91
(f) Not having agriculture income in excess of ` 5,000/-
(g) Not having income from any source outside India
(h) Other than person claiming deduction under section 57 from income taxable
under the head other sources (other than deduction allowed from family
pension)
(i) Total income not exceeding ` 50 lakh
(j) Not for an individual who is either Director in a company or has invested in
unlisted equity shares
(k) Not owning a house property in joint-ownership with two or more persons
(l) Not required to furnish a return of income under seventh proviso to Section
139(1)
m) Has not received a notice u/s 153A or 153C for the relevant year
n) in cases where TDS has been deducted u/s 194N
ITR 2 o) if income-tax is deferred on ESOP
ITR 3 For individuals and HUFs not having Income from Business and Profession and are
ITR 4 Sugam not partners in any firm.
For individuals and HUFs having Income from Business and Profession and are
partners in any firm
For Individuals, HUFs and Firms (other than LLP) being a resident :
(i) having total income up to ` 50 lakh and having income from business and
profession which is computed under sections 44AD, 44ADA or 44AE]
(ii) Not for an individual who is either Director in a company or has invested in
unlisted equity shares or or if income-tax is deferred on ESOP
BCAS 3.13
Referencer
2021-2022
Direct Taxes
ITR Applicable to
ITR 5 For firms (including LLPs), AOPs, BOI, Business trust and Investment fund and other
persons not being HUF, company or persons filing ITR 7
ITR 6
ITR 7 Companies other than companies claiming exemption u/s. 11
For persons including companies required to furnish return u/ss. 139(4A), 139(48),
139(4C), 139(4D), 139(4E) and 139(4F)
Mode of Filing of return Mode of filing
Person • Electronically under digital signature
• Company
• Political party
• Individual/HUF, Firm, LLP or any Person
filing ITR 5 whose accounts are required to
be audited under sec. 44AB
• Any other Person • Electronically under digital signature or
• Transmitting the data in the return
electronically under electronic verification
code; or
• Transmitting the data in the return
electronically and Submitting the verification
Where total income assessable under the Act • of the form in ITR V
during the previous year of a person –
Physical form
(i) being an individual of the age of 80 years or
more at any time during the previous year if
he furnishes return in ITR 1 or in ITR 4.
Electronic Verification Code (EVC) is a 10 digit limit of 120 days from date of upload for your
alphanumeric code which can be generated return to be treated as a valid return
through e-filing portal and is valid for 72 hours.
Following are the modes to E-verify Return From May 22, 2016 Electronic Verification Code
(EVC) can be generated by pre-validating your
• EVC received in Registered Mobile number bank account on the e-Filing website. All major
and e-mail. This option would be available banks have launched this facility which will
for taxpayer whose total income is Less than facilitate its customers, who may not have a net-
` 5 lakh and there is no refund. banking account, to e-verify their return.
• Aadhaar OTP i.e. Mobile number registered Return of income claiming certain deductions
with Aadhaar card is linked and OTP is sent or certain loss
1. Return furnished after due date, the
to that Mobile number and e-mail ID
deductions/benefits may not be available—
• Login to e-Filing through Net Banking facility
a. Deductions under sections 10A, 10B,
• Download the ITR-V, sign it manually and and section covered under Part C of
send it to CPC through post within the time Chapter VIA of the Act.
3.14 BCAS
Referencer
2021-2022
Return of Income
b. Allowability of losses incurred under • In case return, as required by sections
business (other than unabsorbed 139(4A) (Trusts)/139(4C) (specified Trusts,
depreciation), capital gains and/or from Institutions, Political Parties, etc.) is not filed
owning and maintaining race horses. on or before due date (31st July in case
However, Carry forward of losses income before claiming exemption under
under the head House property and section 11 exceeds maximum amount not
unabsorbed depreciation is not affected chargeable to tax or 31st October where
even if the return is not filed within due accounts are subject to audit), penalty of
date. ` 100/- per day may be imposed under
section 272A(2)(e).
c. Losses of specified business (Sec.
35AD) and Speculation Business. Revised Return
• Return can be revised anytime within three
2. Where any loss has been duly carried
forward in accordance with the provisions of months from the end of assessment year or
section 139(3) in earlier years, there is no before completion of assessment whichever
obligation to file the intermediary return in is earlier.
which the benefit of set off is claimed or loss
is required to be carried forward, to be filed • Even Belated Return can be Revised.
within the due date.
Defective return
3. Section 119(2)(b) empowers the CBDT 1. S. 139(9) lays that return of income would
to authorise any Income Tax Authority
to admit an application or claim for any be defective in case not accompanied
exemption, deduction, refund or any other by the relevant annexure. W.e.f.
relief under the Act after the expiry of the 1-6-2013. A return which has been filed
period specified under the Act, to avoid without payment of self-assessment tax
genuine hardship in any case or class of along with interest shall be treated as a valid
cases. The claim for carry forward of loss in return.
case of a loss return is relatable to a claim
arising under the category of any other 2. However annexure less return scenario,
relief available under the Act. Refer Cir. No. return would be treated as defective in case
9/2015 DATED 9-6-2015. return is not filed completely in the manner
specified in the return form.
Belated Return
• Return can be filed belatedly before three 3. If the assessee fails to rectify the defects
in the return of income within 15 days of
months from the end of the relevant intimation of defects by the Assessing Officer
assessment year or before completion of or specified period, the return will be treated
assessment, whichever is earlier. as invalid return and the provisions of
Income-tax Act will apply as if the assessee
has failed to furnish the return.
2
BCAS 3.15
Referencer
2021-2022
Direct Taxes
Interest
Section Circumstances under Amount on which Rate of Interest Period of interest
which payable payable
A. PAYABLE BY THE ASSESSEE
115P Failure to pay the whole Amount payable as 1% p.m. or part From due date on
or any part of the tax on tax on distributed thereof comprised which such tax was
distributed profit profit in the period of payable, to the date
default on which it is actually
paid
115QB Failure to pay whole Amount payable as 1% p.m. or part From due date on
or any part of tax on tax on distributed thereof comprised which such tax was
distributed income u/s. profit in the period of payable, to the date
115QA (Buy-back of default on which it is actually
shares) paid
115S Failure to pay the whole Amount payable 1% p.m. or part From due date on
or any part of the tax on as tax on income thereof comprised which such tax was
income distributed by UTI/ distributed in the period of payable, to the date
Mutual funds default on which it is actually
paid
115TB Failure to pay whole Amount payable as 1% p.m. or part From due date on
115TE
or any part of tax on tax on distributed thereof comprised which such tax was
income distributed by a profit in the period of payable, to the date
Securitisation Trust u/s. default on which it is actually
115TA paid
Failure to pay whole or Amount payable 1% p.m. or part From due date on
any part of tax on accreted as tax on accreted thereof comprised which such tax was
income of the trust or income in the period of payable, to the date
institution u/s. 115TD default on which it is actually
paid
201(1A) Failure to deduct tax, Amount of tax not 1% p.m. or part of From the date
wholly or in part (w.e.f. deducted a month on which tax was
1-7-2010) deductible to the date
on which such tax is
deducted
201(1A) Delay in payment of tax Amount of tax 1.5% p.m. or part From the date
deducted at source (w.e.f. deducted and paid of a month on which tax was
1-7-2010) after the due date deducted to the date
on which such tax is
actually paid
206C(7) Failure to collect, or delay Amount of tax 1% p.m. From the date
in remitting tax collected not collected or if on which tax was
from the business of collected paid after collectible to the date
trading in alcoholic liquor, the due date on which the tax is
forest produce, scrap, etc. actually paid
3.16 BCAS
Referencer
2021-2022
Interest
Section Circumstances under Amount on which Rate of Interest Period of interest
which payable payable
220(2) Failure, or delay in Amount specified in 1% p.m. or part From the day
payment of any amount the demand notice thereof comprised immediately following
other than advance tax, as issued u/s. 156 in the period of the end of the period
demanded u/s. 156 default mentioned in S.
220(1) up to the date
of payment
234A Defaults in furnishing Tax on total income 1% p.m. or From the date
return of income u/ss. as determined part thereof or i m m e d i a t e l y
139(1), 139(4), 142(1) u/s. 143(1) or on comprised in the following the due
regular assessment, period of default date [specified u/s.
as reduced by 139(1)] to the date
advance tax paid, of furnishing of the
TDS or TCS, return or as the case
relief u/s. 90 & may be, the date of
90A & deduction completion of the
allowed u/s 91, assessment u/s. 144
tax credit allowed
to be set off u/s.
115JAA/115JD (for
purpose of interest
payable u/s. 140A,
the tax on total
income as declared
in the return)
234B Defaults in payments of Assessed tax, or 1% p.m. or part From 1st day of
advance tax where: as the case may thereof comprised April of the relevant
1. No advance tax is be, the amount by in the period of A.Y. to the date of
paid u/s. 208, or which the advance default determination of total
tax paid falls short income u/s. 143(1) or
2. Advance tax paid of the assessed tax regular assessment
u/s. 210 is less than
90% of the assessed
tax [i.e., for purposes
of interest payable
u/s. 140A, the tax
on total income
declared in the return
of income and for
other purposes, the
tax on total income
as determined u/s.
143(1) or on regular
assessment (as
reduced by TDS or
TCS)]
BCAS 3.17
Referencer
2021-2022
Direct Taxes
Section Circumstances under Amount on which Rate of Interest Period of interest
which payable payable
234C Failure to pay/deferment of a. Shortfall/Non- 1% p.m. or part Three months
advance-tax payment of thereof comprised in either case. If
p r e s c r i b e d in the period of capital gains arises
instalments default. after any of due
b. Shortfall of 1% p.m. or part dates of instalments
advance tax thereof for one of advance tax,
paid-up to month capital gains tax
15th March shall be paid in
from tax (one instalments falling
month) due due subsequent to
on returned date of gain. It is
income not necessary to
pay entire tax on
or before due date
immediately following
the gain
Shortfall not
applicable in case of
dividends received
u/s. 115BBDA
234C Failure to pay/deferment Shortfall of advance 1% w.e.f. 1-6-
of advance tax in case of tax paid- up to 15th 2016
eligible assessee referred March from tax due
to in section 44AD on returned income
(Also applicable in case of
eligible assessee referred
to in section 44ADA)
234D Interest on excess refund Amount refunded 0.50% p.m. For every month or
234E part of month from
(w.e.f. 1-6-2003) u/s. 143(1) exceeds the date of grant of
refund to date of
amount refundable regular assessment
on regular From the due date till
the date the default
assessment continues
Default/delay in filing Levy of fees ` 200 per day
E-TDS statements within not to exceed
time prescribed u/ss. tax deductible/
200(3)/206C(3) (w.e.f. collectible
1-7-2012)
3.18 BCAS
Referencer
2021-2022
Interest
Section Circumstances under Amount on which Rate of Interest Period of interest
which payable payable
234F Default/delay in filing Levy of fees-
return of income u/s. 139 a. ` 1000
(If the total income
is upto ` 5,00,000)
b. ` 5,000
(If the income
exceeds
` 5,00,000)
234H Default in intimating the Fee, as may be
Aadhaar Number under prescribed, not
exceeding ` 1,000
Section 139AA(2)
B. RECEIVABLE BY THE ASSESSEE
244A Refunds arising on Amount of refund 0.67% p.m. or part From the 1st of
up to
31st account of excess due, provided it is thereof w.e.f. 1-6- April of the relevant
May
2016 payment of advance tax not less than 10% 2002 assessment year to
or TDS or TCS or refund of tax determined 0.50% p.m. or the date on which
arising on appeal, refund u/s. 143(1) or part thereof w.e.f. refund is granted
of fringe benefit tax, etc. 115WE(1) or on 8-9-2003 or from the date of
regular assessment payment of taxes or
penalties to the date
on which refund is
granted as the case
may be
244A Where the return of Amount of refund 0.5% p.m. or part From 1st April of the
w.e.f.
1st income is filed on or due provided it is thereof assessment year till
June,
2016 before the due date of not less than 10% the date of grant of
filing the return of income of tax determined refund
under section
143(1) or on regular
assessment
Where the return of As stated above 0.5% p.m. or part From the date of
income is filed after the
due date of filing the thereof filing of return till
return of income
the date of grant of
refund
Where refund is arising As stated above 0.5% p.m. or part 0.5% from the date of
out of self-assessment tax
paid thereof furnishing of return of
income or payment of
self-assessment tax
wherever is later, till
the date of grant of
refund
BCAS 3.19
Referencer
2021-2022
Direct Taxes
Section Circumstances under Amount on which Rate of Interest Period of interest
which payable payable
244A Refunds arising on Amount of refund In addition to From date of expiry
(1A)
account of giving effect calculated in the regular interest of time allowed u/s.
to an order under section order. as stated above, 153(5) to the date of
250 or section 254 or additional interest grant of refund
section 260 or section 262 @ 3% p.a. w.e.f.
or section 263 or section 1-6-2016
264
244A Refunds arising on Amount of refund In addition to From the date on
(1B)
account of giving effect calculated in the the said amount which claim for
to an order under section order. simple interest @ refund is made in
250 or section 254 or 0.5 % p.m. or part prescribed form to
section 260 or section 262 thereof the date on which the
(paid to the credit of the refund is granted.
Central Government)
Notes : Procedure for calculating interest (Rule 119A)
1. Where annual rate is provided, the fraction of the month is to be ignored.
2. Where monthly rate is provided, the fraction of the month is to be considered as full month.
3. Principal amount of tax, penalty or other sum must be rounded off to nearest of ` 100/- and any
fraction of ` 100/- shall be ignored.
4. Where interest is charged for any period under section 206C(7) on the tax amount specified in
the intimation issued under section 206CB (1), then, no interest shall be charged under section
220(2) on the same amount for the same period.
5. In respect of assessment completed under section 147 or section 153A interest under section
234B is to be computed from the 1st day of April next following the relevant financial year (for
which assessment has been completed) to the date of determination of total income under section
147 or section 153A as the case may be.
6. Where an assessee makes an application to Settlement Commission for any assessment year,
he shall be liable to pay interest under section 234B for period commencing from 1st day of
April of the relevant assessment year to date of application, on additional amount of income-
tax disclosed in application. Further, if the liability of tax is increased pursuant to the order of
Settlement Commission, then the assessee shall be liable to pay interest from 1st day of April of
relevant assessment year to date of order of Settlement Commission.
2
3.20 BCAS
Referencer
2021-2022
Penalties
Penalties
Section Nature of Default Basis of Charge Quantum of Penalty
140A(3)
Failure to pay wholly or — Such amount as AO may
impose but not exceeding
partly – tax in arrears
a) Self assessment taxes or
b) Interest or
c) Fees
under section 140A(1)
158BFA(2) Determination of undisclosed — Min. 100%; Max. 300% of
income of block period tax leviable in respect of
undisclosed income
221(1) Failure to pay tax; i.e., non- — Not to exceed total amount
payment of tax required by of tax in arrears
notice u/s. 156 (Refer Note
1)
270A Under-reporting or — Under-reporting of income
(applicable misreporting of income – 50% of tax payable on
from under-reported income
AY: 2017-
18)
— Under-reporting of income
resulting from misreporting
of income – 200% of tax
payable
271(1) Non-compliance with notice — ` 10,000/- for each failure
in addition to tax, if any,
(b) (Up to u/s. 142(1) or sec. 115WD(2) payable
assessment to file return of income or
year 2016- return of fringe benefits
17) or to produce documents
required by assessing officer
u/s. 143(2) or 115WE(2) or
to produce evidence on
which assessee relies or
u/s. 142(2A) to get accounts
audited (Refer Note 4)
271(1)(c), Concealment of particulars Tax sought to be evaded Minimum – Amount of
271(1)(d) of income or particulars of (from assessment year tax sought to be evaded
(Up to fringe benefits, or furnishing 2016-17, based on formula maximum – 3 times the
assessment inaccurate particulars thereof as provided in Explanation minimum – in addition to tax,
year 2016- (Refer Note 4) 4) if any, payable
17)
BCAS 3.21
Referencer
2021-2022
Direct Taxes
Section Nature of Default Basis of Charge Quantum of Penalty
271A
271AA Failure to keep, maintain or — ` 25,000/-
retain books or documents
271AAB u/s. 44AA
271AAC Failure to keep and maintain International transaction 2% of value of each
271AAD
3.22 information and documents or specified domestic International transaction
u/s. 92D, failure to report transactions or specified domestic
transactions and maintaining transactions
or furnishing of incorrect
information/document
Failure to furnish the — ` 5,00,000/-
information and the
documents as required
under Section 92D(4)
Search under Section 132 — Undisclosed income — 10% of undisclosed
on or after 1st July, 2012 of the specified previous income
year, and assessee admits (if search initiated before 15-
during the search and 12-2016)
satisfies other conditions
— 30% of undisclosed
income
(if search initiated on or after
15-12-2016
— Undisclosed income of — 20% of undisclosed
the specified previous year, income
and assessee admits in the (if search initiated before 15-
return of income filed after 12-2016)
the search and satisfies
other conditions — 60% of undisclosed
income
(if search initiated on or after
15-12-2016
— Not covered by either of — 60% of undisclosed
the above situations income
On income returned to in — 10% of tax payable under
sections 68, 69, 69A, 69B, section 115BBE(1)(i) on
69C or 69D, in excess of such excess
income already discussed
in the ROI and taxes paid in
accordance with S. 115BBE
False entry in books of Amount of false entry or 100% of the aggregate
account or omission of any omitted entry amount of such false or
entry which is relevant for omitted entry
computation of total income,
to evade tax liability
BCAS
Referencer
2021-2022
Penalties
Section Nature of Default Basis of Charge Quantum of Penalty
271B
271BA Failure to get accounts Total sales, turnover, or 0.5% of total sales, turnover
271C or gross receipts or `
audited or furnish Tax Audit gross receipts
271CA
271D Report as required u/s. 1,50,000/- whichever is less
271DA
44AB
271DB
Failure to furnish a report as — ` 1,00,000/-
required u/s. 92E
Failure to deduct the whole Amount of tax not Equal to the amount of tax
or part of the tax as required deducted/paid failed to be deducted/paid
by or under Chapter XVII-B
(Ss. 192 to 196D) or failure
to pay the whole or part of
tax u/s. 115-O, or second
proviso to section 194B
Failure to collect whole or Amount of tax not collected Equal to the amount of tax
part of tax as required by the person has failed to
or under Chapter XVIIBB collect
(Section 206C)
Contravention of the Amount of loan or deposit Equal to the amount of loan
provisions of S. 269SS; i.e., or specified sum so taken or deposit or specified sum
by taking or accepting any or accepted so taken or accepted
loan or deposit or specified
sum otherwise than by
modes specified therein
Contravention of Amount of receipts (from Equal to the amount of such
the provisions of 1st April, 2017) so taken or receipt
S. 269ST; i.e., receipt of an accepted
amount of ` 2,00,000/- or
more –
a. In aggregate from a
person in a day
b. In respect of a single
transaction: OR
c. In respect of ` 5,000/- for every day
transaction relating during which the failure
to one event or continues
occasion from a person
otherwise than by
digital modes
Non facilitation of prescribed -
electronic modes of payment
referred to in section 269SU
BCAS 3.23
Referencer
2021-2022
Direct Taxes
Section Nature of Default Basis of Charge Quantum of Penalty
271E Contravention of S. 269T; Amount of deposit or Equal to the amount of
i.e., repayment of any loan specified advance so loan or deposit or specified
or deposit or specified repaid advance so repaid
advance (otherwise than by
modes specified therein
271F (up to Failure to furnish Return of — ` 5,000/-
1st day of Income u/s. 139(1) before
April, 2018) the end of the relevant
Assessment Year
2 7 1 F A Failure to furnish statement — ` 500/- for every day during
which the failure continues
(w.e.f. 1-4- of financial transaction or
2018) reportable account under
Section 285BA(1)
2 7 1 F A Failure to furnish statement — ` 1,000/- for every day
(w.e.f. 1-4- of financial transaction or during which the failure
2018) reportable account within continues, beginning
the period specified in the from the day immediately
notice issued under Section following the day on which
285BA(5) the time specified in such
notice for furnishing the
statement expires
271FAA Furnishing of inaccurate — ` 50,000/-
information by prescribed
financial institution due
to failure to comply with
prescribed due diligence
requirement
Failure to inform the
prescribed authority about
inaccuracy at the time of
furnishing the statement
of financial transaction or
reportable account
271FAB Failure to inform about ` 500,000/-
inaccuracy after discovering
such inaccuracy and failure
to furnish correct information
within the time specified
Failure to furnish statement/ ---
information/document by
eligible investment Fund
under section 9A(5)
3.24 BCAS
Referencer
2021-2022
Penalties
Section Nature of Default Basis of Charge Quantum of Penalty
271FB
271G Failure to furnish Return of — ` 100/- for every day during
271GA fringe benefit under section which the failure continues
115WD(1)
271GB
Failure to furnish information International transactions 2% of value of International
or document u/s. 92D(3) or specified Domestic transaction or specified
(Refer Note 6) transaction domestic transaction for
each such default
Failure to furnish Value of transaction which 2% of the value of
information/document by an has effect of transferring transaction
Indian concern as required directly or indirectly
under newly inserted section management/control of
285A Indian concern
In any other case ` 500,000/-
Failure to furnish report or — ` 5,000/- for every day
furnishing inaccurate report during which failure
under section 286 in respect continues and period of
of international group failure does not exceed 1
month or
Failure to produce — ` 15,000/- for every
information and documents day during which failure
pursuant to a notice within continues and period of
prescribed period failure exceeds 1 month
Failure to comply with order — ` 5,000/- for every day
directing payment of penalty during which failure
under Section 286(1) or (2) continues beginning from
the day following the day on
Providing inaccurate — which the prescribed period
expires
` 50,000/- for every
day during which failure
continues beginning from
date of service of order
` 5,00,000/-
information in report in spite
of knowledge of same or
furnishing of inaccurate
information or document in
response to notice
BCAS 3.25
Referencer
2021-2022
Direct Taxes
Section Nature of Default Basis of Charge Quantum of Penalty
271H From ` 10,000/- to `
271-I Failure to furnish TDS — 100,000/-.
statements by due date
271J or furnishing incorrect ` 100,000/-
information in the TDS
271K statement (with effect from ` 10,000/- for each such
272A(1) July 1, 2012) report or certificate.
272A(2) Failure to furnish or — From ` 10,000/- to `
furnishing of inaccurate 100,000/-.
information in respect of
payment of any sum to ` 10,000/- for each failure
a non-resident or to a
foreign company whether ` 100/- for every day during
chargeable or not which the failure continues.
However, amount of penalty
W.e.f. 1st April, 2017, failure — for point Nos. 3, 6, 7, 9, 11,
to furnish or furnishing of 12 and 13 shall not exceed
inaccurate information in amount of tax deductible or
reports or certificates by an collectible
accountant or a merchant
banker or a registered
valuer.
Failure to deliver a —
statement or failure to
furnish a certificate as
required under Section 35
or 80G
Failure to answer questions, —
sign statements, attend
summons u/s. 131(1) or
failure to comply with the
notice u/s. 142(1) or u/s.
143(2) or failure to comply
with direction issued under
section 142(2A)
Failure to: —
1. Comply with notice
u/s. 94(6) – furnishing
information regarding
securities
2. Give notice of
discontinuance of
business — Section
176(3)
3.26 BCAS
Referencer
2021-2022
Section Nature of Default Basis of Charge Penalties
272AA Quantum of Penalty
3. Furnish in due time
returns, statements, or Up to ` 1,000/-
particulars u/ss. 133,
206 or 285B
4. Allow inspection of any
register(s) — Section
134
5. Furnish returns u/s.
139(4A) or 139(4C)
6. Deliver in due time a
declaration mentioned
in Section 197A
7. Furnish a certificate u/s.
203
8. Deduct and pay tax u/s.
226(2)
9. F u r n i s h returns/
statements/certificate
u/s. 206C
10. Furnish a statement
of particulars of
perquisites and profits
in lieu of salary u/s.
192(2C)
11. Deliver in due time a
declaration referred to
in Section 206C(1A)
12. Deliver in due time,
quarterly return
specified in Section
206A(1)
13. Deliver in due time, a
statement referred to
in Section 200(2A) of
206(3A)
Failure to furnish the —
prescribed information
required u/s. 133B (refer to
Form No. 45D)
BCAS 3.27
Referencer
2021-2022
Direct Taxes
Section Nature of Default Basis of Charge Quantum of Penalty
272B(1) ` 10,000/-
Penalty for failure for non- —
272B(2) compliance under section ` Penalty 10000 for each
272BB(1) 139 such failure
` 10,000/-
272BB(1A) Penalty for failure in quoting —
PAN or Aadhaar number ` 10,000/-
Failure to apply for Tax —
Deduction Account Number
(TAN) (Section 203A)
Failure to quote Tax —
Deduction/Collection
Account Number or quoting
of false number in challans,
certificates, statements or
other documents referred to
in Section 203A(2)
NOTE:
1. No penalty shall be levied u/s. 221(1) if the assessee proves that the default was for good and
sufficient reasons.
2. No penalty is imposable for any failure u/ss. 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C,
271CA, 271D, 271E, 271F, 271FA, 271FB, 271FAB, 271G, 271GA, 271H, 271I, 271J, 272A(1)(c)
or (d), 272A(2), 272AA(1), 272B, 272BB(1), 272BBB(1), 272BB(1A)(b), 273(1)(b), 273(2)(b) or (c)
if the person or assessee proves that there was a reasonable cause for such failure (S. 273B).
3. Penalty u/s. 271 can also be levied by Commissioner.
4. Penalty u/s. 271(1) can be levied even if no tax is payable on the income assessed.
5. No penalty shall be imposed u/s. 271AAA, if the assessee admits undisclosed income,
substantiates the manner of deriving such undisclosed income and pays tax together with interest
in respect of the undisclosed income. It will not be applicable for searches conducted on or after
1st July, 2012.
6. From 1st October, 2014, Transfer Pricing Officer as referred to in section 92CA is also authorised
to levy penalty under section 271G.
7. Faceless Penalty Scheme, 2021 has been notified vide Notification dated 12 January 2021. All
pending and new penalty proceedings w.e.f. 12.1.2021 will be covered by the Faceless Penalty
Scheme, 2021.
3.28 BCAS
Referencer
2021-2022
Audit Reports under the IT Act / Accountant’s Reports under the IT Act
Audit Reports under the Income-tax Act
Section Rule For Whom In Form
No.
10(23C) 16CC Fund, trust, institutions, university, educational institution, hospital or 10BB
medical institution
12A(b) 17B Public charitable or religious Trusts or Institutions whose income 10B
exceeds ` 250,000/- before exemption
33AB(2) 5AC Assessees growing and manufacturing tea or coffee or rubber, 3AC
claiming deduction in respect of special deposits made u/s. 33AB(1)
33ABA(2) 5AD Assessees claiming deduction in respect of Deposits under Site 3AD
Restoration Fund Account/Scheme
35D(4) 6AB Assessees other than Cos. or Co-op. Societies claiming amortisation 3AE
of certain preliminary expenses
35E(6) 6AB Assessees other than Cos. or Co-op. Societies claiming deduction 3AE
for expenditure on prospecting, etc. of certain minerals
44AB 6G Assessees carrying on business/profession whose Turnover/Gross 3CA,
Receipts exceeds ` 1 crore [` 50 lakh for professional] or profit 3CB,
& gains are deemed to be u/ss. 44AD/44AE/44AF/44ADA and 3CD
assessee has claimed lower profits than specified in those sections
44DA 6GA Special provisions for computing income by way of Royalties, etc. in 3CE
case of non-residents
80-I(7)/ 18BBB Assessees having an industrial undertaking or business of hotel or 10CCB
80-IA/80- an enterprise for Infrastructure Facility, Telecommunication Services
IB
80-IC 18BBB Undertakings or enterprises in certain special category states 10CCB
80-ID(3) 18DE Assessees claiming deduction in respect of profits & gains from 10CCBBA
(iv) business of hotels & convention centre in specified areas
80-IB(11B) 18DD Assessees having an undertaking deriving profits from business of 10CCBC
operating and maintaining a hospital in a rural area
80-IB(7A) 18DB/ Assessees claiming deduction in respect of business of owning and 10CCBA/
& (7B) DC operating a multiplex theatre or a convention centre 10CCBB
115VW(ii) 11T Companies engaged in the business of operating qualifying ships 66
and which have opted for Tonnage tax scheme
142(2A) 14A Special audit at the instance of the Assessing Officer 6B
13B 17CA Audit Report of Electoral Trust 10BC
BCAS 3.29
Referencer
2021-2022
Direct Taxes
Accountant’s Reports under the Income-tax Act
Section Rule For Whom In Form
10A(5) 16D No.
Assessees claiming deduction in respect of newly established 56F
undertakings in Free Trade Zones, EPZ, SEZ, STP, etc.
10B(5) 16E Assessees claiming deduction in respect of newly established EOUs 56G
10BA(5) 16F Assessees claiming deduction in respect of profits from export of 56H
eligible articles or things, [handmade articles or things made of
wood as the main raw material.]
50B(3) 6H In case of slump sale, for computation of Net Worth of the 3CEA
Undertaking/Division
80LA 19AE Scheduled bank which owns an offshore banking unit in Special 10CCF
80-IB(11C) 18DDA Economic Zone
Assessees claiming deduction from profits & gains from operating 10CCBD
and maintaining a hospital located anywhere in India
80JJAA(2) 19AB Assessees claiming deduction in respect of employment of new 10DA
workmen
92E 10E Relating to International transactions or Specified Domestic 3CEB
Transactions and particulars thereof
115JB 40B Company assessees to which provisions of section 115JB applies 29B
115JC 40BA For LLP (A.Y. 2012-13) and persons other than a company (from 29C
A.Y. 2013-14) to which provisions of S. 115JC applies
195 37BB Furnishing of certificate for payment to non-resident 15CB
201/206C 31ACB/ For resident who has failed to deduct/collect tax in accordance with 26A/
37J provisions of Chapters XVIIB/XVIIBB 27BA
3.30 BCAS
Referencer
2021-2022
Rectifications
BCAS Section Subject matter Who can Time limit What can be Remarks
Referencer rectify rectified
2021-2022
154 a) Any order An Income 4 years from Any mistake 1. An appeal lies against rectification
passed Tax Authority the end of the apparent from orders.
under the IT referred to in financial year the record. 2. An appeal lies against refusal to
in which order/ rectify the mistake.
Act section 116. intimation was
passed 3. Regarding disallowance u/s. 43B for
b) Intimation want of proof with return, refer Cir No.
or deemed
intimation 669 dt. 25-10-1993 and Cir. No. 688
u/s. 143(1)
dt. 23-8-1994.
c) Intimation 4. Rectification order having effect of
u/s. 200A(1)
enhancing liability or reducing refund
could be passed only after giving
d) Intimation notice and an opportunity of being
u/s.
206CB(1) heard to the assessee.
5. An application made on or after 1-6-
2001 shall be disposed of within six
months from the end of the month in
which the application is received by
the Authority.
254(2) Any order passed ITAT Six months from — do — 1, 2, & 3 stated above are not applicable.
by ITAT the end of the
month in which 4 Is same as stated above.
the order was
passed 5 Application filed shall be accompanied
by a fee of ` 50.
Rectifications / Appeals
6 Failure to consider relevant
decision of the Apex Court and the
jurisdictional HC constitutes mistake
apparent and requires rectification
u/s. 254(2). (M/s R J ROLLER
FLOUR MILL PVT LTD vs. ITO)
(2011-TIOL-208-ITAT-LKW)
3.31
3.32 Appeals Direct Taxes
Section Appeal Filing Fee Form Documents Remarks
to Time
Limit No.
246A CIT (A)
30 days Appeal filing fees: 35 1. Form No. 35 1. Appeal is to be filed
a) ` 250/- 2. Order appealed against electronically by persons
– 1 certified copy who are required to file
i) Where their return of income
assessed total 3. Grounds of Appeal and electronically. Other
income is ` 1 Statement of Facts persons (i.e. those who
lakh or less; 4. Notice of demand are not required to file
their return of income
ii) Where 5. In case of appeal electronically) have an
against penalty order option to file the appeal
appeals are filed copy of relevant either electronically or in
assessment order a paper form. From AY
on issues such 2019-20 other persons
6. Counterfoil of challan of referred to above will
as TDS defaults, appeal fees cover only assessees
above 80 years of age.
non-filing of (Dates for filing appeal are
extended due to the Covid
returns, etc.
which cannot be
linked with the
assessed income
b) ` 500, where
assessed total 19 pandemic)
income is more 2. Person authorised to sign
than ` 1 lakh return of income u/s. 140,
but less than ` 2 must sign the appeal form.
lakh
BCAS c) ` 1,000, where 3. Appealable orders are
Referencer assessed total listed in clauses (a) to (r)
2021-2022 income is more of sub section 1 of the
than ` 2 lakh relevant section.
4. Tax on returned income
should be paid before
filing the appeal.
Section Appeal Filing Fee Form Documents Remarks
to Time
Limit No.
BCAS 5. Where the assessee has
Referencer not filed return of income
2021-2022 the amount of advance-tax
payable should be paid
before filing the appeal. Rectifications / Appeals
Commissioner (Appeals)
may for any good and
sufficient reason, to be
recorded in writing,
exempt the assessee from
operation of this condition
6. If the delay in presenting
the appeal is for a
sufficient cause, CIT(A)
has a power to condone
the delay and admit the
appeal
7. In case of appeals
filed electronically, the
requirement for affixing
court fee stamp and
furnishing two copies of
the Form 35 and order
appealed against would
not apply.
3.33
3.34 Section Appeal Filing Fee Form Documents Remarks Direct Taxes
to Time
Limit No.
253 ITAT
60 days Appeal filing fees : 36 1. Form No. 36 — in 1. Person authorised to sign
A. ` 500 - triplicate return of income u/s. 140,
a) Where total 2. Order appealed against must sign the appeal form.
income assessed
is ` 1 lakh or — 2 copies (including 2. Appealable orders are
less. listed in clauses (a) to (f)
one certified copy)
b) Where appeals of sub section 1 of the
are filed on 3. Order of Assessing
issues such as relevant section.
TDS defaults, Officer — 2 copies
non-filing of 3. If the assessed income
4. Grounds of appeal is a loss then fees have
before First Appellate to be calculated as if that
Authority —2 copies loss is income.
returns, etc. 5. Statement of facts filed 4. As per CBDT Cir
which cannot before First Appellate No.17/2019 dt 8-8-2019,
be linked with Authority — 2 copies departmental appeals will
the assessed henceforth be filed only
income. 6. In case of appeal
in cases where the tax
c) An application for against penalty order
stay of demand. effect exceeds the revised
— 2 copies of relevant
B. ` 1,500, if income monetary limits as under:
assessed is above ` assessment order
1 lakh but less than ` – ITAT ` 50,00,000
2 lakh.
7. In case of appeal – High Court `
C. 1% of the income
assessed subject to against order u/s. 1,00,00,000
maximum of ` 10,000
where assessed 143(3) read with S. – Supreme Court `
144A — 2 copies of 2,00,00,000
BCAS the directions of the For the purpose of computing
Referencer Deputy Commissioner the monetary limits stated tax will
2021-2022 u/s. 144A not include any interest thereon,
income is more than 8. In case of appeal except where chargeability of
` 2 lakh. against order u/s. interest itself is the issue under
D. For appeals 143 read with S. 147 dispute. In cases where returned
– 2 copies of original loss is reduced or assessed as
against penalty assessment order, if income, the tax effect would
orders, see Bidyut any include notional tax on disputed
Kumar Sett vs. ITD
92 ITD 148 (SB). additions.
Section Appeal Filing Fee Form Documents Remarks
to Time
Limit No.
BCAS No such fees shall be 9. Counterfoil of challan In case of penalty orders, the
Referencer payable in case: for payment of appeal tax effect will mean quantum
2021-2022 fees of penalty deleted or reduced
i) Appeal is filed by in the order to be appealed
commissioner. against.
ii) Memorandum of Tax effect shall be calculated
cross objection is separately for every
filed. assessment year in respect of
the disputed issues in the case
3.35 of every assessee. Rectifications / Appeals
The tax effect is to be seen
with reference to relevant
assessment year. In case of
a composite order of any High
Court or appellate authority,
which involves more than one
assessment year and common
issues in more than one
assessment year, no appeal
shall be filed in respect of an
assessment year or years if
the ‘tax effect’ is less than the
prescribed monetary limits in
any of the year(s).
In case where a composite
order/judgment involves more
than one assessee, each
assessee shall be dealt with
separately.
Monetary limits stated above
do not apply to writ matters and
direct tax matters other than
Income-tax.
3.36 Section Appeal Filing Fee Form Documents Remarks Direct Taxes
to Time No.
Limit
Cases where the tax effect is
not quantifiable or not involved,
such as the case of registration
of trusts or institutions under
section 12A of the Income-
tax Act, 1961, shall not be
governed by the limits specified
above and decision to file
appeal in such cases will be
taken on merits of a particular
case.
[F. No. 279/Misc/142/2007-
ITJ(Pt)] Circular No. 21/2015
dated 10-12-2015.
253(4) ITAT 30 NIL — 36A Same as above The assessee/A.O. (who
(Cross days (Except instead of may or may not have filed
objection) Form 36, Form 36A). an appeal) may file the cross
objections. No fees payable.
254(2A) ITAT Fees for stay — 1. Stay application in 1. Application shall be
application is
` 500/- triplicate. presented by the
2. Copy of demand applicant in person or
notice. by his authorised agent
or by registered post to
3. Copies of the Bench of the Tribunal
correspondence with where appeal was filed or
BCAS revenue authorities. which has the jurisdiction
Referencer
2021-2022 4. Copy of letter refusing to hear the appeal.
stay of demand. 2. The Appellate Tribunal
5. Application shall be may pass an order of stay
supported by an in proceedings subject
affidavit duly sworn in to the condition that the
by the applicant or his assessee deposits not
authorsed agent. less than 20% of the
Section Appeal Filing Fee Form Documents Remarks
to Time
Limit No.
BCAS 6. Counterfoil of challan amount of tax, interest,
Referencer for payment of fee. fee, penalty or any other
2021-2022 sum payable under the
provisions of the Act or
furnishes security of equal
amount in respect thereof.
3. The stay granted by the Rectifications / Appeals
Tribunal shall be valid
only for 180 days from the
date of such order and the
Tribunal shall dispose of
the appeal within the said
period of stay. The period
of stay can be extended
on an application by
the assessee, if ITAT is
satisfied that the delay in
disposing of the appeal
is not attributable to the
assessee and the assessee
has complied with the
condition mentioned above
in point 2.
However, the total period
of stay will not exceed 365
days. After the expiry of
365 days, the stay shall
stand vacated even if the
delay in disposing of the
appeal is not attributable
to the assessee.
3.37 4. Filing fee for a stay
petition to ITAT is ` 500.
3.38 Section Appeal Filing Fee Form Documents Remarks Direct Taxes
to Time
Limit No.
260A High 120 days As per the provisions Memo- 1. Appeal Memo stating 1. Appeal can be filed by
Court
of Code of Civil ran- the substantial question the CCIT or CIT or
Procedure, 1908. dum of of law. an assessee who is
The amount of fees Appeal 2. Order of ITAT. aggrieved by any order
will depend upon the 3. Grounds of Appeal filed passed by ITAT.
statute of the State in
which the appeal is before ITAT. 2. Appeal lies only if HC is
being filed. The fees
are to be paid by way 4. Order of CIT (A). satisfied that the case
of purchase of judicial
5. Grounds of Appeal and involves a substantial
Statement of facts filed question of law.
stamp papers of the before CIT (A). 3. Delhi High Court has in
respective State in 6. Order of Assessing the case of Chamanlal
vs. CIT (112 Taxman
which the appeal is to Officer. 291)(Del.) explained the
be filed.
meaning of substantial
question of law.
4. Appeal shall be heard on
substantial question of law
formulated by the High
Court. The High Court
may, if it is satisfied, for
reasons to be recorded,
hear the appeal on any
other substantial question
of law not formulated by it.
BCAS 5. Provisions of Code of Civil
Referencer Procedure, 1908 relating
2021-2022 to appeals to High Court
shall, as far as the case
may be, apply in case
of appeals under this
section.
Section Appeal Filing Fee Form Documents Remarks
to Time
Limit No.
BCAS 6. High Court may admit
Referencer an appeal after expiry of
2021-2022 period of 120 days if it is
satisfied that there was
sufficient cause for not
filing the same within that
period.
Filing of appeal or application for reference by Income-tax authority: Section 268A
1. The Board may, from time-to-time, issue orders, instructions or directions to other Income-tax authorities, fixing such
monetary limits as it may deem fit, for the purpose of regulating filing of appeal or application for reference by any Income-
tax authority under the provisions of this Chapter.
2. Where, in pursuance of the orders, instructions or directions issued under sub-section (1), an Income-tax authority has not
filed any appeal or application for reference on any issue in the case of an assessee for any assessment year, it shall not
preclude such authority from filing an appeal or application for reference on the same issue in the case of–
a) The same assessee for any other assessment year; or
b) Any other assessee for the same or any other assessment year.
3. Notwithstanding that no appeal or application for reference has been filed by an Income-tax authority pursuant to the orders
or instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party in any appeal
or reference, to contend that the Income-tax authority has acquiesced in the decision on the disputed issue by not filing an
appeal or application for reference in any case.
4. The Appellate Tribunal or Court, hearing such appeal or reference, shall have regard to the orders, instructions or directions
issued under sub-section (1) and the circumstances under which such appeal or application for reference was filed or not
filed in respect of any case.
5. Every order, instruction or direction which has been issued by the Board fixing monetary limits for filing an appeal or
application for reference shall be deemed to have been issued under sub-section (1) and the provisions of sub-sections
(2), (3) and (4) shall apply accordingly.
2 Revision
3.39
3.40 Revision Direct Taxes
Section Subject matter of Revision Who can Time Limit Remarks
revise
263 Any order passed by the Assessing Officer CIT or 2 years from the end 1. Assessee to get
which is erroneous and prejudicial to the Principal CIT of the financial year in opportunity to be heard
interests of the revenue. Explanation 2 which order sought to before an order u/s. 263
provides that an order passed by the be revised was passed is passed.
Assessing Officer shall be deemed to be (For exception, refer 2. CIT has the power to
erroneous and prejudicial to the interest of sub-section (3)). call for and examine the
revenue if in the opinion of the Commissioner
or Principal Commissioner: record of any proceeding
under the Act.
i) The order is passed without making 3. ITAT has power to grant
inquiries or verification which should stay against AO passing
have been made; an order giving effect to
ii) The order is passed allowing any relief directions contained in
without inquiring into the claim; order passed u/s. 263 of
iii) The order has not been made in the Act.
accordance with any order, direction or
instruction issued by the Board under
section 119; or
iv) The order has not been passed in
accordance with any decision which is
prejudicial to the assessee, rendered by
the jurisdictional High Court or Supreme
Court in the case of assessee or any
other person.
BCAS
Referencer
2021-2022
Section Subject matter of Revision Who can Time Limit Remarks
revise
BCAS 264 Any order passed by the Assessing Officer CIT or a) If CIT revises on 1. Application by assessee
Referencer
2021-2022 subject to the following exceptions: Principal CIT his own motion — to be accompanied by a
1 An order to which S. 263 applies. 1 year. fee of ` 500.
2 An order against which an appeal lies to b) If assessee makes 2. An order cannot be said
CIT(A)/ITAT and the time limit for filing
the appeal has not expired. an application — to have been made
1 year from date subject to an appeal if
of communication/ the appeal has been
3 An order which is subjected to an appeal knowledge of disposed of by the
before the CIT(A)/ITAT. the order (CIT CIT(A) or ITAT without
has powers to passing an order on
condone delay), merits.
order to be
passed within
one year from the
end of the F.Y. in
which application
is made.
2
3.41 Revision
3.42 TDS Chart Direct Taxes
Section Applicable Nature of Exemption & Limit Rate of Procedure for Section TDS
Rules Payment Deduction for Nil/ 200 Return Certificate
F. Y. 2021-22 Statement Form No./
(Ref. Note 1 & Lower Form No./Due Due Date
Deduction
Note 5) Date
192 26, 26A, Salary a. ` 3,00,000 for senior 1. A s Employee can Q u a r t e r l y Form 16 and
Refer 26B, 26C, to any
Note 3 28, 28AA, person citizen (i.e. 60 years applicable apply to the AO s t a t e m e n t Form 12BA by
28AB 30, or more), ` 5,00,000
t o in Form 13. in Form No. 15 June from
31, 31A
31AB, 33, for very senior citizen individuals 24Q/31 July, 31 the close of
37BA & (i.e., 80 years or - refer Part Oct., 31 Jan., the financial
37BB more) and ` 2,50,000 I of 1st 31 May (for year
for others after Schedule of quarter ending
considering deductions Finance Act, 30/6, 30/9,
under Sections 16, 2021 or 31/12 and 31/3
80C, 80CCA, 80CCB, 2. As per respectively)
80CCC, 80CCD, 80D, s e c t i o n
80DD, 80DDB, 80E, 1 1 5 B A C
80GG, 80TTA , 80TTB if the
and 80U and loss employee
under the head ‘Income furnishes a
from House Property’ declaration
b. The employer has an a n d
option not to deduct c h o o s e s
tax on non-monetary to be
perquisites provided to g o v e r n e d
BCAS employee and instead, by the new
Referencer
2021-2022 pay it himself taxation
regime
Section Applicable Nature of Exemption & Limit Rate of Procedure for Section TDS
Rules Payment Deduction for Nil/ 200 Return Certificate
BCAS F. Y. 2021-22 Statement Form No./
Referencer (Ref. Note 1 & Lower Form No./Due Due Date
2021-2022 Deduction
Note 5) Date
193 28, 28AA, Interest a. ` 5,000 for interest 10% 1. S e n i o r Q u a r t e r l y Form 16A
Refer
Note 3 28AB, on on debentures (to a C i t i z e n statement in by 15/8,
29C, 30, Securities resident individual and can furnish Form No. 26Q 15/11, 15/2
31, 31A, to any HUF). d e c l a r a t i o n on 31 July, 31 and 15/6, for
resident b. No tax is to be in duplicate Oct., 31 Jan., the quarters
deducted on interest in Form 15H 31 May (for ending 30/6,
payable if the tax on quarter ending 30/9, 31/12
• By the Government the estimated 30/6, 30/9, and 31/3
on any security income is Nil. 31/12 and 31/3 respectively
• To LIC, GIC or any Refer Note 2. respectively
other similar insurer 2. A person
• To a corporation other than
established by or a company
under a Central or a firm
Act which exempt can furnish
from Income Tax by declaration
virtue of any law in duplicate
• On 7 year NSC in Form 15G
• On any securities where the
issued by a aggregate
company in a income does
dematerialised form not exceed
listed on recognised the maximum
stock exchange in amount not
India liable to
c. ` 10,000 for 8%
tax. Refer
savings (Taxable) Note 2.
Bonds, 2003 or 7.75% 3. Payee can TDS Chart
Savings (Taxable) apply to the
3.43 Bonds, 2018 A.O. in Form
13.
3.44 Section Applicable Nature of Exemption & Limit Rate of Procedure for Section TDS Direct Taxes
Rules Payment Deduction for Nil/ 200 Return Certificate
F. Y. 2021-22 Statement Form No./
(Ref. Note 1 & Lower Form No./Due Due Date
Deduction
Note 5) Date
194 27, 28, Payment No TDS if 10% — As per As per
28AB, to share- • Dividend is paid by any procedure procedure
29, 29C, holder, mode other than cash mentioned for mentioned for
30,31, resident AND section 193 section 193
31A, 31AB in India Amount does above above
exceed
& 37BA of any not
dividend ` 5,000 p.a.
• No TDS on payments
of dividends to a
business trust
194A 28, 28AA, Interest a. ` 40,000/50,000 10% Same as S. 193 As per As per
Refer 28AB,
Notes (oth- in case of a senior above procedure procedure
3, 4 29C, 30,
31, 31A, er than citizen where payer mentioned for mentioned for
31AB, Interest is a banking co. or section 193 section 193
31AC,
31ACA, on Secu- co-operative society above above
37AB
rities) to engaged in banking
resident business, or in case of
time deposits (including
recurring deposits) with
PO under a scheme
notified by Central
Govt. ` 5,000 in any
other case
BCAS b. No deduction required
Referencer on following interest
2021-2022 payments:
i. By a firm to a
partner
Section Applicable Nature of Exemption & Limit Rate of Procedure for Section TDS
Rules Payment Deduction for Nil/ 200 Return Certificate
BCAS F. Y. 2021-22 Statement Form No./
Referencer (Ref. Note 1 & Lower Form No./Due Due Date
2021-2022 Deduction
Note 5) Date
ii. On deposits under
notified schemes
of the Central
Government
iii. By a co-operative
society (other
than a co-
operative bank) to
a member thereof
or to such income
credited/paid by
a co-operative
society subject to:
3.45 – Total sales, TDS Chart
gross
receipts or
turnover
does not
exceed ` 50
crore
AND
– Amount of
interest does
not exceed
` 40,000/ `
50,000 in
case of a
senior citizen
p.a.
3.46 Section Applicable Nature of Exemption & Limit Rate of Procedure for Section TDS Direct Taxes
Rules Payment Deduction for Nil/ 200 Return Certificate
F. Y. 2021-22 Statement Form No./
(Ref. Note 1 & Lower Form No./Due Due Date
Deduction
Note 5) Date
iv. Payment to LIC
or any other
company or
co-operative
society carrying
on insurance
business.
v. Payment to
banking company
or co-operative
society carrying
on banking
business.
vi. P a y m e n t
to financial
corporation
established under
any Central, State
or Provincial Act.
BCAS vii. Central Govt. to
Referencer assessees on
2021-2022 excess tax paid
viii. Zero coupon
bonds issued by
scheduled bank,
Infrastructure
capital fund/
Company/PSU,
Infrastructure
Debt Fund.
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