Doing Business in India - RSM Austria

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3.1.2 Other Non-corporate Entities There are certain other non-corporate entities recognized by the Income-tax law viz partnerships, trusts, Hindu Undivided Families (HUFs) etc. These entities are treated as ‘resident’ in India in any financial year, unless the control and management of their affairs are situated wholly outside India, during the year. Limited Liability Partnership (LLP) is introduced as a form of entity and has been accorded the same tax treatment as a general partnership firm. 3.2 Rates of Tax Income-tax rates for individuals and HUFs regardless of their residential status are as follows Income Slabs(Rs.) For 2009-10 Tax Rates* Income Slabs(Rs.) For 2010-11 Tax Rates* 0 - 1,60,000# Nil 0 - 1,60,000# Nil 1,60,001# - 3,00,000 10.30% of income exceeding Rs. 1,60,000 1,60,001# - 5,00,000 10.30% of income exceeding Rs. 1,60,000 3,00,001 - 5,00,000 Rs. 14,420 plus 20.60% of income exceeding Rs. 3,00,000 5,00,001 - 8,00,000 Rs. 35,020 plus 20.60% of income exceeding Rs. 5,00,000 5,00,001 and above Rs. 55,620 plus 30.90% of income exceeding Rs. 5,00,000 8,00,001 and above Rs. 96,820 plus 30.90% of income exceeding Rs. 8,00,000 * The tax rates are inclusive of education cess of 3%. # In case of a resident woman below 65 years of age at any time during the previous year, the basic exemption income slab is Rs. 1,90,000 for FY 2009-10 and in case of a resident individual of the age of 65 years or more (senior citizen) at any time during the previous year, the basic exemption income slab is Rs. 2,40,000 for FY 2009-10. The tax for other slabs will change accordingly. 118 DOING BUSINESS IN INDIA
3.2.1 Tax incidence The incidence of income tax for individuals, women and senior citizens, for FY 2010-11, having different income levels can be exemplified as follows Income (Rs.) Tax Liability (Rs.) Individuals* Women Senior Citizens 1,60,000 - - - 1,90,000 3,090 - - 2,40,000 8,240 5,150 - 3,00,000 14,420 11,330 6,180 4,00,000 24,720 21,630 16,480 5,00,000 35,020 31,930 26,780 * The tax incidence for HUFs, AOPs and BOIs will be same as that of individuals. 3.3 Taxable Income The provisions relating to determination of taxable income are as follows: i. Residents are liable to tax on their worldwide income. ii. iii. iv. Non-residents are liable to tax on income, which accrues or arises or is deemed to accrue or arise in India as well as income, which is received or deemed to be received in India. ‘Resident but not ordinarily resident’ persons are liable to tax on income specified in (b) above and income derived from a business controlled from or profession set up in India. As per the Finance Act 2010, in respect of income earned by non-residents in the form of interest, royalty and fees for technical services, such income shall be deemed to accrue or arise in India whether or not, the non-resident has a residence or place of business or business connection in India or whether the services are rendered in India or not. 3.4 Gross Income An individual’s gross income includes salary, income from house property, profits and gains of business or profession, capital gains and income from other sources. 3.4.1 Gift received liable to income tax Any sum of money received on or after 1 September 2004 exceeding Rs. 50,000 (about US$ 1,111)* in a financial year without consideration by an individual or Hindu Undivided Families shall be included in the total income of such individual or Hindu Undivided Family. The purview of the provision has been extended with effect from 1 October 2009 to include any sum of money as well as specified properties. The term property includes immovable properties, shares and securities, jewellery, drawings, painting, sculptures, archaeological collections and any other work of art. As per DOING BUSINESS IN INDIA 119
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International global excellence in
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Doing business in India
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Marine Drive, Mumbai
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Contents Hawa Mahal, Jaipur
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Education .........................
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SIGNIFICANT COMPANY LAW REGULATIONS
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ANNEXURE 1 Sectors Prohibited for F
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Chapter 1 India - A Profile Golden
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2.2 Language India is a land of man
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5.2 Communication The Indian teleph
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7.5 Public Holidays The statutory p
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CHAPTER 2 INDIAN BUSINESS AND INVES
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This resulted in a fall in the Bomb
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4.3.3 Designs After expiry of three
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non-banking finance activities viz.
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trading in derivative based on BSE
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same as those where concessional fi
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10.3 Low Research and Development C
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CHAPTER 3 BUSINESS ENTITIES 1.0 FOR
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Sr. No. Criteria Requirements 1 Tra
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The project is funded by inward rem
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cause the disassociation of the par
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2.1.2 MOA 2.1.3 AOA Companies for r
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paid up equity capital can be less
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The requirements for public and pri
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3.0. STATUTORY REQUIREMENTS FOR COM
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3.4 Online Filing System Ministry o
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Section Nature of default 168 Defau
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4.0 SIGNIFICANT COMPANY LAW REGULAT
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4.7 Audit Committees For better cor
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The meetings of the board are requi
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Chapter 4 Human Resources Kathakali
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Employee benefit What is it? Applic
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Employee benefit D e p o s i t L i
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2.5 The Equal Remuneration Act, 197
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The Factories Act safeguards agains
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CHAPTER 5 FOREIGN INVESTMENT IN IND
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2.3 Prohibition on investments 2.3.
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ii. Subject to compliance with the
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ii. iii. iv. The NRI investor has t
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ii. On repatriation basis An NRI ca
Page 84 and 85: Indian company can issue ESOPs to e
Page 86 and 87: ii. iii. iv. The foreign equity aft
Page 88 and 89: vi. Branch Offices have to submit A
Page 90 and 91: ii. ECB up to US$ 20 million or equ
Page 92 and 93: 3.2 Approval Route 3.2.1 Eligible B
Page 94 and 95: 3.2.6 End Use not permitted i. Util
Page 96 and 97: issued by Reserve Bank from time to
Page 98 and 99: Sr. No. Sector/Activity FDI Cap / E
Page 100 and 101: Sr. No. II C POWER Sector/Activity
Page 106 and 107: Sr. No. 29. Sector/Activity Telecom
Page 108 and 109: Chapter 6 Taxation System India Gat
Page 110 and 111: Entity Domestic Company Financial y
Page 112 and 113: **** Mutual funds, other than equit
Page 114 and 115: interest deductible is restricted t
Page 116 and 117: 2.4 Tax Relief In order to encourag
Page 118 and 119: Section Details of Exemption / Dedu
Page 120 and 121: Section 35 DDA 54G 54GA 54EC 10(34)
Page 122 and 123: Sr. No. Nature of activity and loca
Page 128 and 129: Sr. No. xviii Nature of activity an
Page 130 and 131: No deduction under 80IA, 80IB, 80IA
Page 132 and 133: Tax is payable in advance on income
Page 136 and 137: the Finance Act 2010, 'bullion' is
Page 138 and 139: Rs. 40,00,000. The scheme is applic
Page 140 and 141: 4.5 Income of Offshore Funds Income
Page 142 and 143: 7.3 Advance Rulings The Indian gove
Page 144 and 145: 9.0 INDIRECT TAXES 9.1 Goods and Se
Page 146 and 147: on goods manufactured and vice vers
Page 148 and 149: Annexure I Double Taxation Avoidanc
Page 150 and 151: Sr. No. Country Dividend [Note 1] T
Page 156 and 157: ANNEXURE II: TAX DEDUCTION AT SOURC
Page 158 and 159: NOTES 142 DOING BUSINESS IN INDIA
Page 164: RSM International Executive Office,
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