LATEST AMENDMENTS IN RULES

LATEST AMENDMENTS IN RULES

Old Rules To Continue For Upper Slab.

       Salaried persons whose "total income chargeable to tax" exceeds Rs. 100,000 will not be governed by the Simplified Procedure of Assessment,announced in the Budget .They will continue to be governed by the old rules, file the return of Income on the existing forms and also pay the tax at the old rates under the slab system.Thus, while the tax liability of a salaried person covered by the simplifed procedure could be a maximum of rs. 6,000 (Rs 10,000 minus Rs. 4,000 exemptions)The liability in cases covered by the simplifed procedure will be Rs. 17,500 plus 35 per cent of the amount exceding Rs. 100,000 subject to such rebate as may be admissible under the Rules.

              Standerd Allowance in such cases (of total income exceeding Rs. 100,000) will also continue to remain unchanged at Rs. 24,000.The Investment Rebate and other rebates will also remain unchanged.There is no change in the income tax liability of individals (including salaried persons) URDs.Aops.

And hufs whose total income chargeable to tax exceds Rs. 100,000.however there is relief both in terms of tax amount and the procdure for in the Rs. 100,000 bracked.

   About the taxable and non-taxable salary items under the Simplified procedure,sources said,there was no change whatover,pay,bonus,Special pay etc.are taxable items;house rent, conveyance/transport allowance etx.(upto fixed limit) are example items.However, Investment Allowance stands with-drawn as this has been duty compensated by the raise in the exemption limited from Rs. 24,000 to 40,000.The simplifed procedure come into force from the year 1988-89 (Funancial for the issue of the National Tax Number (NTN)to every tax-payer by the end of this year. It will be plastic-coated and smaller in size the National Identity card.