Direct Tax Collections Up

No.402/92/2006-MC (40 of 2008)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated the 3rd September 2008
PRESS RELEASE
Net direct tax collections in the first five months in the present fiscal (up to August 2008)
stood at Rs.84,409 crore, up from Rs.61,030 crore, registering a growth of 38.31 percent.
Growth in Corporate Taxes was 43.49 percent (Rs.48,450 crore as against Rs.33,766 crore),
while Personal Income Tax (including FBT, STT and BCTT) grew at 31.79 percent (Rs.35,840
crore as against Rs.27,195 crore). Growth of Fringe Benefit Tax (FBT) was 31.85 percent
(Rs.1,339 crore against Rs.1,015 crore); Securities Transaction Tax (STT) was 15.10 percent
(Rs.2,730 crore against Rs.2,372 crore); and Banking Cash Transaction Tax (BCTT) was minus
21.36 percent (Rs.274 crore against Rs.348 crore).
Among regions, tax growth in Delhi and Mumbai was 76.23 percent and 32.49 percent,
respectively. Other regions with high tax growth are Nagpur (88.75 percent); Kochi (58.07
percent); Kolkata (56.82 percent); Bhubaneshwar (53.59 percent) and Bangaluru (48.87
percent).
Overall growth in tax deducted at source (TDS) was more than 40 percent but growth in
corporate TDS was 55.22 percent. Corporate TDS collections stood at Rs.26,445 crore as on 31st
August 2008 against Rs.17,037 crore during the corresponding period last year. This was also
the result of several TDS verifications / surveys carried out by the Income Tax department,
which led to detection of hundreds of crore of rupees not deducted or not paid to the government
account after deduction. Robust growth in direct taxes has been maintained despite substantially
higher relief to individual taxpayers announced by the Finance Minister in the Union Budget
2008. Therefore, higher growth in TDS collections indicates good health of the Indian economy
and indicates further improvement in tax administration and tax compliance levels.
The cost of direct tax collection, on the other hand, which had declined to an all-time low
of 0.54 percent during fiscal 2007-08, is likely to further decline to about 0.43 percent during the
current fiscal, the lowest among all large economies in the world.
Robust growth of over 35 percent in direct taxes during the past few years has helped the
central government in meeting FRBM targets, focus on developmental and social programmes,
and declare higher pay and allowances for its employees.

INCOME TAX RATES: AY2009-2010

A. Individuals and HUFs

In case of individual (other than II and III below) and HUF:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,50,000/-.	NIL
ii.	Where the total income exceeds Rs.1,50,000/- but does not exceed Rs.3,00,000/-.	10% of amount by which the total income exceeds Rs. 1,50,000/-
iii.	Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-.	Rs. 15,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv.	Where the total income exceeds Rs.5,00,000/-.	Rs. 55,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

II. In case of individual being a woman resident in India and below the age of 65 years at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,80,000/-.	NIL
ii.	Where total income exceeds Rs.1,80,000/- but does not exceed Rs.3,00,000/-.	10% of the amount by which the total income exceeds Rs.1,80,000/-.
iii.	Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-.	Rs. 12,000- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv.	Where the total income exceeds Rs.5,00,000/-	Rs.52,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

III. In case of an individual resident who is of the age of 65 years or more at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.2,25,000/-.	NIL
ii.	Where the total income exceeds Rs.2,25,000/- but does not exceed Rs.3,00,000/-	10% of the amount by which the total income exceeds Rs.2,25,000/-.
iii.	Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-	Rs.7,500/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv.	Where the total income exceeds Rs.5,00,000/-	Rs.47,500/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

Further, the amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 10% of such income tax, provided that the total income exceeds Rs. 10 lacs. Thus, in case of individuals/HUFs no surcharge shall be payable if the total income is below Rs.10 lacs.

The tax and surcharge, if any, are to be further enhanced by education cess levied @ 3% from A. Y. 2008-09 onwards.

B. Association of Persons (AOP) and Body of Individuals (BOI)

i. Income-tax:

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,50,000/-.	NIL
ii.	Where the total income exceeds Rs.1,50,000/- but does not exceed Rs.3,00,000/-.	10% of amount by which the total income exceeds Rs. 1,50,000/-
iii.	Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-.	Rs. 15,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv.	Where the total income exceeds Rs.5,00,000/-.	Rs. 55,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

ii. Surcharge: The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 10% of such income tax, provided that the total income exceeds Rs. 10 lacs.

iii. Education Cess: 3% of the total of Income-tax and Surcharge.

C. Co-operative Society

i. Income-tax:

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs. 10,000/-.	10% of the income.
ii.	Where the total income exceeds Rs.10,000/- but does not exceed Rs.20,000/-.	Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii.	Where the total income exceeds Rs.20,000/-	Rs. 3.000/- + 30% of the amount by which total income exceeds Rs.20,000/-.

ii. Surcharge: Nil

iii. Education Cess: 3% of the Income-tax.

D. Firm

i. Income-tax: 30% of total income.

ii. Surcharge: The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 10% of such income tax, provided that the total income exceeds Rs. 1 crore.

iii. Education Cess: 3% of the total of Income-tax and Surcharge.

E. Local Authority

i. Income-tax: 30% of total income.

ii. Surcharge: Nil

iii. Education Cess: 3% of Income-tax.

F. Domestic Company

i. Income-tax: 30% of total income.

ii. Surcharge: The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 10% of such income tax, provided that the total income exceeds Rs. 1 crore.

iii. Education Cess: 3% of the total of Income-tax and Surcharge.

G. Company other than a Domestic Company

i. Income-tax:

• @ 50% of on so much of the total income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government;
  
• @ 40% of the balance

ii. Surcharge: The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 2.5% of such income tax, provided that the total income exceeds Rs. 1 crore.

iii. Education Cess: 3% of the total of Income-tax and Surcharge.

Guide To ITR

What is an assessment year?
An assessment year is the year when the income earned is assessed or taken into account. So the income earned in the financial year 2007-08 is assessed in 2008-09, which is the current assessment year. A financial year starts on April 1 and ends on March 31.

I have not paid any tax for the year; do I still need to file a tax return?
You need to file an income tax return if you have earned an income greater than the basic exemption limit. For the financial year 2007-08, or the assessment year 2008-09, the basic exemption limits for males is Rs 1.1 lakh. For females and senior citizens it is Rs 1.45 lakh and Rs 1.95 lakh respectively. So if you have earned an income greater than your exemption limit, you have to file a return, even if you have not paid any tax, employing the various deductions in place.

Where can I find the Indian Income Tax Return forms?
You can find them on the web address www.incometaxindia.gov.in/download _all.asp

Which form should I fill up?
There are eight Indian Income Tax Return (ITR) forms. If you have income from salary, pension and interest income, then ITR-1 is the form for you. On the web address www.incometaxindia.go
v.in/download_all.asp, where you can find all the ITR forms, there are two versions of ITR-1. You can choose any one of them. Both the forms are the same, only one has larger font size than the other.
If apart from salary and interest income, you have capital gains or earned a rental income or are paying off a home loan, the form to use is ITR-2. Also during the course of the year, if you have received a dividend from a company whose shares you own or from a mutual fund, you need to file ITR-2. This despite the fact that dividend is tax exempt in the hands of the investor.
Other than this if, you have any business income ITR-4 is the form to fill up, notwithstanding any other type of income that you may have earned during the course of the year.

How do I fill up the form?
If you have only salary income, then the details in the Form 16 issued by the organisation you work for is enough to fill up the form. If you have income from other sources then you would need those details to file your returns.

What if my organisation still hasn't issued the Form 16?
Form 16 has to be issued by April 30, within 30 days of the end of the financial year. Nevertheless, that rarely happens. If your organisation still hasn't issued Form16, ask them to do so immediately. Without Form 16, you will not have the necessary details required to file the income tax return. If your organisation is unlikely to issue a Form 16 in time, then write a registered letter to the organisation, a copy of which should be sent to your assessing officer.

I do not have a permanent account number, can I still file my return?
The permanent account number (PAN) is compulsory to file a tax return. If you do not have a PAN card, apply for one as soon as possible. You can initiate the process by downloading and filling up Form No 49A from the web address www.incometaxindia.gov.in/allforms.asp. This form along with the necessary documents can be submitted at any of the offices of UTI Technology Services Limited.

Do I need to attach annexures while filing the tax return?
ITR forms by their very definition are supposed to annexure-less. As instruction number 4 in the ITR form points out, "No document (including TDS certificate) should be attached to this form. The official receiving the return has been instructed to detach all documents enclosed with this form and return the same to the assessee." However, some income tax offices have been insisting on annexures like Form 16 and tax deducted at source (TDS) certificates while filing tax returns. Therefore, it might be a good idea to carry your Form 16 and TDS certificates when you go to file your tax returns for the year.

Can I pay taxes online too?
Account holders of 29 banks can pay taxes online by filing up challans via a platform made available by the National Securities Depository Ltd (NSDL) at https://tin.tin.nsdl.com/etax/Index.html. You would need a net banking account with the listed banks to pay taxes online.

I had more than one job last year. How do I file my return?
You will need to get hold of all your form 16s from your previous employers as well as the current employer. Fill up the relevant ITR form by aggregating the details available in all your form 16s.

I don't need to pay income tax on dividend income and long term capital gain from selling shares or equity mutual funds. Do I need to disclose that?
Details of income that is exempt from tax also needs to be provided while filing up the return.

I have a cash deposit of Rs 15 lakh in my savings account. Do I need to declare?
You have to compulsorily make some disclosures while filing your income tax return. Cash deposits of Rs 10 lakh or more in a savings account. Credit card payments of Rs 2 lakh or more on a credit card. Purchase or sale of an immovable property at Rs 30 lakh or more. Purchase of shares of a company of Rs 1 lakh or more, and purchase of units of mutual funds of Rs 2 lakh or more. (For a complete list See Instruction 9(ii) of ITR-2)

What about the income earned by my child?
Income earned by your child is to be clubbed with the income of the parent with the higher income. If, in the first year in which the child earns an income, the income is clubbed with the income of the father who earns a higher income, it has to be continued to be clubbed to the income of the father, even if next year, his mother might have a higher income.
The income cannot be clubbed with the parent's income if the child earns the money from his own talent. So if your child has just won a reality show singing contest, then a separate return needs to be filed in his name.

I had gifted Rs 1 lakh to my husband at the beginning of the financial year 2007-08, how do I account for that?
Any income arising from gifts given to your spouse are taxed in your hands. Therefore, in this case, if your husband earns Rs 7,000 as interest from your gift of Rs 1 lakh then, this Rs 7,000 will be added to your income for the year and taxed accordingly. However, if your husband decides not to spend this money and reinvests it, then the next year, the interest earned on the Rs 7,000 that has been invested will be added to your husband's income for the year and not yours.

With the stock markets falling, I had to sell my shares for a loss, how do I adjust for the losses?
Capital losses can be adjusted only against capital gains and not against any other source of income.
First and foremost, you need to figure out whether your have made a short-term capital loss or a long-term capital loss. If the loss is a short-term capital loss, that is you sold the shares within one year of buying them at a loss, then you can set it off against any taxable short-term capital gain and any taxable long-term capital gain.
Let us say you make a short-term capital loss of Rs 10,000 on selling shares. This loss can be set off against any short-term capital gain you have made on selling shares or any other taxable short-term capital gain. But this loss cannot be set off against long-term capital gain on selling shares, because long-term capital gain made on selling shares is not taxable. Nevertheless, you can set off the short-term capital loss against any other taxable long-term capital gain like sale of gold or property or debt mutual funds.
What about long-term capital loss on selling shares? Long-term capital gain on selling shares or units of equity mutual funds is tax-free. As a result long-term capital loss on selling shares is also tax-free. What it means is that any long-term capital loss incurred on selling shares or units of equity mutual fund cannot be set off against any long-term capital gain, even taxable long-term capital gain made on selling units of debt mutual funds or for that matter property or gold.
If during a given year, you have made a capital loss and do not have enough capital gains to set it off, then you can carry it forward to the next year. The Income Tax Act allows you carry forward this loss for the next eight years. If after eight years the loss is still not adjusted, it cannot be carried forward anymore.

What if I do not file my return by July 31?
As the website of the income tax department points out, the return "may be furnished at any time before the expiry of two years from the end of the financial year in which the income was earned." So for the income earned during financial year 2007-08, the belated return can be filed before March 31, 2010. However, there is a slight catch here. If you file returns after March 31, 2009, then the income tax department can choose to levy a fine of Rs 5,000. In addition, if you have tax outstanding and you do not pay your tax and file your returns before July 31, 2008, then a simple interest of 1% per month will be charged on the amount that is outstanding. The Rs 5,000 fine can also be levied on individuals who choose to pay the amount outstanding after March 31, 2009. This will be over and above the 1% per month simple interest charged on the amount outstanding.

I have already filed my return, but now I realise I made mistakes while filing it. What do I do now?
You can refile your income tax return before July 31, 2008, provided the income department has not completed the assessment already.

The company I work for deducted excess tax, more than I am liable to pay. How will I get the excess money back?
After the income tax department completes your assessment, the excess money will be either credited to your bank account (if you have opted for refunds to be directly deposited to your bank account while filing your return) or a cheque will be sent across to you by the income tax department.
-Author

AY 2008-2009 E-Filling Statistics

The Income Tax Department is encouraged by the enthusiastic response by taxpayers to E-filing of I-T returns as on July 31st by Individuals and Non-Corporates.

Table 1: Key results and performance indicators Milestone Achievements E-returns upto 31/07/2008 12.49 Lakh (up from 1.46 Lakh in 07-08) Voluntary E-returns 12.14 Lakh (97 % of total E-returns) E-returns received on the due date* 1.76 Lakh E-returns received on the last 5 days before due date 4.68 Lakh Number of registered users 34.03 Lakh Number of all returns filed using free Return Preparation Software available on website 4.07 Lakh (33 % of total E-returns filed) Peak rate of return received/hour 31,740/hr Peak bandwidth utilized 53 Mbps Table 2: Form-wise E-returns filed for AY 2008-09 (and AY 2007-08 arrear cases) Number of E-Returns (Form wise) From 01-APR-2008 To 31-JUL-2008 Form Type Total Returns filed ITR-1 (For Individuals with Salary or Interest Income only) 3,96,358 ITR-2 (For Individuals and HUF without Income from Business) 3,68,887 ITR-3 (For Individuals and HUF who are partners in any Partnership Firm but do not have any other Income from Business) 24,512 ITR-4 (For Individuals and HUF with Income from Business) 3,88,356 ITR-5 (For Partnership Firms, AOPs, Local Authority, BOI and for Profit Trusts) 48,773 ITR-6 (For Companies) 22,367 ITR-8 (For Fringe Benefit Tax) 161 TOTAL 12,49,414 ITR 7 (for not for profit Trusts) has not been Notified for e-Filing Table 3: State-wise distribution of E-returns filed for AY 2008-09 (and AY 2007-08 arrear cases) State Voluntary returns (Individuals and Non Corporate) Mandatory returns (Corporates and Large Firms) Total MAHARASHTRA 271,217 6,895 278,112 DELHI 148,584 5,408 153,992 KARNATAKA 142,854 1,433 144,287 TAMILNADU 114,630 3,724 118,354 GUJARAT 111,509 4,289 115,798 UTTAR PRADESH 65,635 1,096 66,731 PUNJAB 64,283 1,166 65,449 ANDHRA PRADESH 52,835 1,580 54,415 WEST BENGAL 47,229 4,124 51,353 MADHYA PRADESH 45,602 475 46,077 RAJASTHAN 40,475 1,241 41,716 HARYANA 33,326 630 33,956 KERALA 27,350 1,345 28,695 CHANDIGARH 7,920 224 8144 ORISSA 6,764 300 7,064 CHHATISHGARH 6,270 158 6,428 JHARKHAND 5,901 194 6,095 ASSAM 3,829 340 4,169 GOA 3,586 274 3,860 BIHAR 3,646 211 3,857 UTTARAKHAND 3,192 164 3,356 HIMACHAL PRADESH 2,000 60 2,060 STATE OUTSIDE INDIA 1,626 86 1,712 JAMMU ∧ KASHMIR 1,360 148 1,508 PONDICHERRY 703 60 763 ANDAMAN AND NICOBAR ISLANDS 330 6 336 MEGHALAYA 236 10 246 DADRA & NAGAR HAVELI 194 5 199 DAMAN & DIU 135 14 149 SIKKIM 131 1 132 TRIPURA 99 16 115 ARUNACHAL PRADESH 109 5 114 MANIPUR 69 10 79 NAGALAND 51 3 54 LAKHSWADEEP 22 1 23 MIZORAM 14 2 16 TOTAL 1,213,716 35,698 1,249,414

E-Filling Status

The facility for electronic filing of income tax returns is available through the
website http://incometaxindiaefiling.gov.in
Filing income-tax returns
electronically has several advantages – cost of filing is low, ease of filing is high,
it can be filed anytime from anywhere, there is no need to visit the tax office,
return filed is more accurate, there is no fear of losing tax records, returns can be
processed faster and refunds issued faster and more accurately.
This year already over 10 Lakh e-returns have been filed by 29th July, and the
number is expected to cross over 13 lakh by 31st July compared to 1.6 lakh ereturns
received last year for the same period. Out of this over 1 lakh e-returns have been filed in Delhi. This year 94% of e-returns have been filed voluntarily by individuals. Last year, all over India over 21.93 Lakh e-returns were received, out of which over 14.6 Lakh e-returns were filed voluntarily. Last year Delhi received over 2.85 lakh e-returns, out of which over 1.74 Lakh returns were filed voluntarily by individuals. The number of e-returns is over 10% of all returns received in Delhi Region. E-filing of returns can be done even if taxes are paid at bank without e-payment.

E-returns have been received from far-off regions across the country such as Manipur, Andaman, Lakshwadeep, etc., indicating the broad and far reach of Internet and e-filing across the country. The Income tax e-filing website is highly secured and the income-tax return details filed by the taxpayer cannot be accessed on the website.