Income deemed to accrue or arise in India to a non-resident – Explanation to Section 9 :-
The income of a non-resident by way of interest, royalty or technical fees shall be deemed to accrue or arise in India as provided under section 9 whether or not,
(a) The non-resident has a residence or place of business or business
connection in India; or
(b) The non-resident has rendered services in India.
This amendment is in accordance with the legislative intent of that the situs of rendering services in India is not relevant as long as they are utilized in India. It is proposed to take effect retrospectively from 1st June, 1976.
Investment in long-term infrastructure bonds notified by the Central Government upto Rs. 20,000 is allowed as deduction u/s 80CCF over and above the existing limit of Rs.1 lakh on tax savings u/s 80C.
Contributions to the Central Government Health Scheme are also allowed as a deduction under the existing provisions of section 80D, besides current health insurance schemes under the Income Tax Act.
Deduction in respect of premium paid towards a health insurance policy has been increased to Rs. 20,000 if the person insured is of age of 65 years or above.
Weighted deduction of the expenditure (not being expenditure in the nature of cost of any land or building) incurred on scientific research on an approved in-house research and development facility has been increased from 150 % to 200 percent.
Weighted deduction increased from 125 % to 175 % on payments made to National Laboratories, research associations, colleges, universities and other institutions, for scientific research
For person carrying on business turnover limits over which accounts need to be audited increased from Rs. 40 lakh to Rs. 60 lakh and for person carrying on a profession turnover limits have been increased from Rs. 10 lakh to Rs. 15 lakh.
Maximum Limit of Penalty for failure to get accounts audited under section 44AB or to furnish a report of such audit has been increased from Rs. one lakh to Rs. 1.5 lakh.
For the purpose of presumptive taxation the threshold limit of total turnover or gross receipts have also been increased from Rs. 40 lakh to Rs. 60 lakh.
Tax deducted on payment by way of any expense if paid before the due date of filing the return, such expenditure shall be allowed as deduction.
With effect from 1st July, 2010 interest rate increased from 12% to 18% per annum on tax deducted but not deposited by the specified date.
Limits for deduction of TDS have been revised as under (w.e.f. 01 st July, 2010): 30,000 20,000 Fee for Professional or Technical Services 194J 1,80,000 1,20,000 Rent 194I 5,000 2,500 Commission or brokerage 194H 20,000 5,000 Insurance Commission 194D One time – 30,000 Aggregate during the year - 75,000 One time – 20,000 Aggregate during the year - 50,000 Payment to Contractor 194C 5,000 2,500 Winning from Horse race 194BB 10,000 5,000 Winning from lottery or crossword, puzzles 194B Limits for FY 2010-11 Limits for FY 2009-10 Nature of payment Sections