Various Threshold Limits under Income Tax Act For Assessment Year 2015–2016

1. a) Rs 5,000
2. b) 1/5th of salary (exclud­ing

any allowance, ben­e­fit or

perquisite)

1. c) Actu­al entertainment

allowance received

employee)(Subject to cer­tain conditions)

1. a) Amount actu­al­ly received
2. b) Unuti­lized earned leave**

X Aver­age month­ly salary

1. c) 10 months Average

Salary**

1. d) Rs. 3,00,000

*While com­put­ing unutilized

earned leave, earned leave

enti­tle­ments can­not exceed

30 days for each year of

ser­vice ren­dered to the

cur­rent employer

**Aver­age salary = Average

Salary*** of last 10 months

imme­di­ate­ly pre­ced­ing the

retire­ment

***Salary = Basic Pay +

Dear­ness Allowance (to the

extent it forms part of

retire­ment benefits)+

turnover based commission

1. a) an amount cal­cu­lat­ed as

per 10(10B)of the Industrial

Dis­putes Act, 1947;

1. b) Rs. 5,00,000; or
2. c) Amount actu­al­ly received.

1972 (oth­er than Gov­ern­ment employ­ee) (Sub­ject to

cer­tain conditions).

1. (*15/26) X Last drawn salary** X com­plet­ed year

of ser­vice or part there­of in

excess of 6 months.

2. Rs. 10,00,000
3. Gra­tu­ity actu­al­ly received.

*7 days in case of employee

of sea­son­al establishment.

** Salary = Last drawn

salary includ­ing DA but

exclud­ing any bonus,

com­mis­sion, HRA, overtime

and any oth­er allowance,

ben­e­fits or perquisite

1972 (oth­er than Gov­ern­ment employee)(Subject to

cer­tain conditions).

1. 1/2 X Aver­age Salary* X

Com­plet­ed years of service

2. Rs. 10,00,000
3. Gra­tu­ity actu­al­ly received.

*Aver­age salary = Average

Salary of last 10 months

imme­di­ate­ly pre­ced­ing the

month of retirement

**Salary = Basic Pay +

Dear­ness Allowance (to the

extent it forms part of

retire­ment benefits)+

turnover based commission

1) Actu­al amount received as

per the guide­lines i.e. least of

the fol­low­ing

(a) 3 months salary for

each com­plet­ed year

of ser­vices

(b) Salary at the time of

retire­ment X No. of

months of ser­vices left

for retire­ment; or

2) Rs. 5,00,000

res­i­dence and place of duty

blind and handicapped

employ­ees)

dur­ing his duty per­formed in the course of run­ning of such trans­port from one place to anoth­er place

pro­vid­ed employ­ee is not in receipt of dai­ly allowance.

2BB

1. 70% of such allowance;

or

1. b) Rs. 10,000 per month.

an order­ly and for meeting

expens­es incurred to wards

sec­re­tar­i­al assis­tance an

con­tract basis.

2BB

2BB

1,300 per month.

2BB

exemp­tion in respect of bor­der area allowance

(Sub­ject to cer­tain con­di­tions and locations)

2BB

exemp­tion in respect of bor­der area allowance

(Sub­ject to cer­tain con­di­tions and locations)

2BB

per­ma­nent loca­tions. If this exemp­tion is taken,

employ­ee can­not claim any exemp­tion in respect of

bor­der area allowance (Sub­ject to cer­tain conditions

and loca­tions)

2BB

(Sub­ject to cer­tain conditions)

2BB

con­di­tions and locations)

2BB

1. a) Up to Rs. 1,060 per

month (for alti­tude of 9,000

to 15,000 feet)

1. b) Up to Rs. 1,600 per

month (for alti­tude above

15,000 feet)

con­di­tions and locations)

2BB

group of Island (Sub­ject to cer­tain con­di­tions and

loca­tions)

2BB

tax­able if employer’s

con­tri­bu­tion is Rs. 1 lakh or

less per year)

shall be exempt in the hands of an employee

perquisite in the hands of the employee

pre­vi­ous year does not

exceed Rs.20,000

the hands of the employee

man­u­fac­tur­ing com­pa­ny after 31-03-2013 but before 01-

04–2015 exceeds Rs. 25/100 Crores, as the case may be

(Sub­ject to cer­tain conditions).

expen­di­ture in the nature of cost of any land or building)

expect­ed to be incurred on such project exceeds the

thresh­old lim­it (Sub­ject to cer­tain conditions)

read

with

sec­tion

35CCC

• If total sales, turnover or

gross receipts exceeds Rs.

10,00,000 in any one of the

three years immediately

pre­ced­ing the pre­vi­ous year; or

2) If income from busi­ness or pro­fes­sion exceeds Rs.

1,20,000 in any one of the

three years immediately

pre­ced­ing the pre­vi­ous year

Crore in any pre­vi­ous year, in  case of busi­ness; or

2) If gross receipts exceeds Rs. 25 Lakhs in any pre­vi­ous year, in case of profession.

and main­tain the spec­i­fied infor­ma­tion and documents

orig­i­nal assets dur­ing the finan­cial year, for claim­ing exemption

(Sub­ject to cer­tain conditions)

orig­i­nal asset is trans­ferred and in

sub­se­quent finan­cial year

15,000

1. Life insur­ance pre­mi­um for policy:
2. a) in case of indi­vid­ual, on life of assessee, assessee’s

spouse and any child of assessee

1. b) in case of HUF, on life of any mem­ber of the HUF
2. Sum paid under a con­tract for a deferred annuity:
3. a) in case of indi­vid­ual, on life of the individual,

individual’s spouse and any child of the individual

(how­ev­er, con­tract should not con­tain an option to

receive cash pay­ment in lieu of annuity)

3. Sum deduct­ed from salary payable to Government

ser­vant for secur­ing deferred annu­ity or mak­ing provision

for his wife/children [qual­i­fy­ing amount lim­it­ed to 20% of

salary]

4. Con­tri­bu­tions by an indi­vid­ual made under Employees’

Prov­i­dent Fund Scheme

5. Con­tri­bu­tion to Pub­lic Prov­i­dent Fund Account in the

name of:

1. a) in case of indi­vid­ual, such indi­vid­ual or his spouse or

any child of such individual

1. b) in case of HUF, any mem­ber thereof
2. Con­tri­bu­tion by an employ­ee to a rec­og­nized provident

fund

7. Con­tri­bu­tion by an employ­ee to an approved

super­an­nu­a­tion fund

8. Sub­scrip­tion to any noti­fied secu­ri­ty or noti­fied deposit

scheme of the Cen­tral Government

9. Sub­scrip­tion to noti­fied sav­ings certificates[National

Sav­ings Certificates(VIII Issue)]

1. Con­tri­bu­tion for par­tic­i­pa­tion in unit-linked Insurance

Plan of UTI:

1. a) in case of an indi­vid­ual, in the name of the individual,

his spouse or any child of such individual

1. b) in case of a HUF, in the name of any mem­ber thereof
2. Con­tri­bu­tion to noti­fied unit-linked insur­ance plan of

LIC Mutu­al Fund:

1. a) in the case of an indi­vid­ual, in the name of the

indi­vid­ual, his spouse or any child of such individual

1. b) in the case of a HUF, in the name of any member

there­of

2. Sub­scrip­tion to noti­fied deposit scheme or notified

pen­sion fund set­up by Nation­al Hous­ing Bank [Home

Loan Account Scheme/National Hous­ing Banks (Tax

Sav­ing) Term Deposit Scheme, 2008]

3. Tuition fees (exclud­ing devel­op­ment fees, donations,

etc.) paid by an indi­vid­ual to any uni­ver­si­ty, college,

school or oth­er edu­ca­tion­al insti­tu­tion sit­u­at­ed in India, for

full time edu­ca­tion of any 2 of his/her children

4. Cer­tain pay­ments for purchase/construction of

res­i­den­tial house property

5. Sub­scrip­tion to noti­fied schemes of(a) pub­lic sec­tor com­pa­nies engaged in pro­vid­ing long-term finance for

purchase/construction of hous­es in India for residential

purposes/(b)authority con­sti­tut­ed under any law for

sat­is­fy­ing need for hous­ing accom­mo­da­tion or for

plan­ning, devel­op­ment or improve­ment of cities, towns

and vil­lages, or for both

6. Sum paid towards noti­fied annu­ity plan of LIC or

oth­er insurer

7. Sub­scrip­tion to any units of any noti­fied [u/s

10(23D)] Mutu­al Fund or the UTI (Equi­ty Linked Saving

Scheme, 2005)

8. Con­tri­bu­tion by an indi­vid­ual to any pen­sion fund set

up by any mutu­al fund which is referred to in section

10(23D) or by the UTI (UTI Retire­ment Ben­e­fit Pension

Fund)

9. Sub­scrip­tion to equi­ty shares or deben­tures forming

part of any approved eli­gi­ble issue of cap­i­tal made by a

pub­lic com­pa­ny or pub­lic finan­cial institutions

1. Sub­scrip­tion to any units of any approved mutu­al fund

referred to in sec­tion 10(23D), pro­vid­ed amount of

sub­scrip­tion to such units is sub­scribed only in ‘eli­gi­ble

issue of cap­i­tal’ referred to above.

1. Term deposits for a fixed peri­od of not less than 5

years with a sched­uled bank, and which is in accordance

with a scheme framed and notified.

2. Sub­scrip­tion to noti­fied bonds issued by the

NABARD.

3. Deposit in an account under the Senior Citizen

Sav­ings Scheme Rules, 2004 (sub­ject to certain

con­di­tions)

4. 5‑year term deposit in an account under the Post

Office Time Deposit Rules, 1981 (sub­ject to certain

con­di­tions)

under Sec­tion 80C, 80CCC and

80CCD)

con­di­tions).

under Sec­tion 80C, 80CCC and 80CCD)

con­di­tions).

• Deduc­tion is avail­able in respect of any pay­ment made by an assessee on account of pre­ven­tive health check-up of self, spouse, depen­dent chil­dren or par­ent dur­ing the pre­vi­ous year up to a lim­it of five thou­sand rupees with­in the exist­ing pre­scribed limits
• The age for defin­ing a senior cit­i­zen is reduced from six­ty five years to six­ty Pay­ment on account of pre­ven­tive health check-up may be made in cash.

1. In case of indi­vid­u­als, premium

paid:

1. a) for self, spouse and depen­dent chil­dren: Rs. 15,000 (Rs. 20,000

if per­son insured is a senior citizen);and

1. b) for par­ents of the assessee: (Addi­tion­al) Rs. 15,000 (Rs. 20,000 if per­son insured is a senior citizen)
2. In case of HUF, pre­mi­um up to Rs.15,000 (Rs. 20,000 if per­son insured is a senior cit­i­zen) paid to insure any mem­ber of the family.

ori­ent­ed funds are first acquired

1. a) Any expen­di­ture incurred for the med­ical treatment

(includ­ing nurs­ing), train­ing and reha­bil­i­ta­tion of a

depen­dent, being a per­son with disability

1. b) Any amount paid or deposit­ed under an approved

scheme framed in this behalf by the LIC or any other

insur­er or the Admin­is­tra­tor or the spec­i­fied com­pa­ny [as referred to in UTI (Trans­fer of Under­tak­ing & Repeal) Act, 2002] for the main­te­nance of a depen­dent, being a per­son with dis­abil­i­ty (Sub­ject to cer­tain conditions).

of:

1. a) In case of Indi­vid­ual: Assessee him­self or wholly

depen­dent spouse, chil­dren, par­ents, broth­ers and sisters

1. b) In case of HUF: Any mem­ber of the fam­i­ly who is whol­ly depen­dent upon the fam­i­ly (Sub­ject to cer­tain conditions).

pur­pose of acqui­si­tion of a res­i­den­tial house property

whose val­ue does not exceed Rs. 40 lakhs (Sub­ject to

cer­tain conditions).

[This deduc­tion will be allowed only dur­ing Assessment

Year 2014–15 and 2015–16]

(Sub­ject to cer­tain conditions)

1. a) Rent paid in excess of 10% of total income*;
2. b) 25% of the Total Income; or
3. c) Rs. 2,000 per month.

Total Income = Gross total

income minus cap­i­tal gains, short term cap­i­tal gains under sec­tion 111A, deduc­tions under section

80C to 80U (oth­er than 80GG) and income under sec­tion 115A.

pro­gramme or for car­ry­ing out an eli­gi­ble project or

Nation­al Urban Pover­ty Erad­i­ca­tion Fund shall be

allowed (Sub­ject to cer­tain conditions)

No deduc­tion shall be allowed if

con­tri­bu­tion is paid in cash in

excess of Rs.10,000

1. a) In case of Lump sum payment

- Amount of roy­al­ty income sub­ject   max­i­mum of Rs. 3,00,000

1. b) In oth­er cas­es — amount of such income sub­ject to max­i­mum of 15% of val­ue of books sold dur­ing the pre­vi­ous year.

cer­tain conditions)

soci­ety engaged in bank­ing busi­ness, etc.

(Sub­ject to cer­tain conditions)

soci­ety car­ry­ing on trans­port busi­ness or a society

engaged in the per­for­mance of any manufacturing

oper­a­tions with the aid of pow­er,) in respect of income

by way of inter­est on secu­ri­ties or any income from house property.

2,50,000 for an indi­vid­ual, Rs. 3,00,000 for

Senior Cit­i­zens and Rs. 5,00,000 for Super

Senior Cit­i­zens)

sub­stan­tial­ly inter­est­ed. Pro­vid­ed inter­est is

paid by account pay­ee cheque to resident

indi­vid­ual or HUF

per­sons

paid to res­i­dent individual

any time dur­ing the pre­vi­ous year

co-oper­a­tive bank on time deposits

Scheme Rules, 2004

Tri­bunal

1. a) If sum paid or payable to a con­trac­tor in a sin­gle pay­ment does not exceed Rs. 30,000
2. b) If sum paid or payable to con­trac­tor in aggre­gate does not exceed Rs. 75,000 during

the finan­cial year

res­i­dent (w.e.f. 01-10-2014) person

and machin­ery

remu­ner­a­tion

prop­er­ty (oth­er than Agri­cul­tur­al Land)

secu­ri­ties) to res­i­dents with­out deduc­tion of

tax

1. a) Rs.10,000 where pay­er is bank­ing com­pa­ny or co-oper­a­tive society;
2. b) Rs.5,000 in oth­er case

of bul­lion or jew­ellery, shall, at the time of

receipt of such amount in cash, col­lect from

the buy­er income-tax.

1. a) for bul­lion (exclud­ing any coin or arti­cle weigh­ing 10 grams or less), exceeds Rs.

2,00,000

1. b) for jew­ellery, exceeds Rs.5,00,000

India may file an appli­ca­tion for certificate

autho­riz­ing receipt of inter­est and other

sums with­out deduc­tion of tax under section

195 (Sub­ject to cer­tain conditions).

the ear­li­er year exceeds Rs.50,00,000

for­eign com­pa­ny, any inter­est or salary or

any oth­er sum charge­able to tax under the

pro­vi­sions of the Act, shall furnish

infor­ma­tion in Part A of Form No.15CA

dur­ing the finan­cial year

with Rule

12

year

assess­ment year

Rs. 1,00,000

assess­ment year

Rs. 1,00,000

or gross receipts,

etc., or Rs.

1,50,000, whichev­er

is less

under Sec­tion 285BA(5)

state­ment

1. a) answer questions
2. b) sign statement
3. c) attend to give evi­dence or pro­duce books of account, etc.,

incom­pli­ance with sum­mons under sec­tion 131(1)

1. a) fur­nish req­ui­site infor­ma­tion in respect of secu­ri­ties as required

under sec­tion 94(6);

1. b) give notice of dis­con­tin­u­ance of busi­ness or pro­fes­sion as

required under sec­tion 176(3);

1. c) fur­nish in due time returns, state­ments or cer­tifi­cates, deliver

dec­la­ra­tion, allow inspec­tion, etc., under sec­tions 133, 134,

139(4A),139(4C), 192(2C), 197A, 203, 206,206C, 206C(1A)

and 285B;

1. d) deduct and pay tax under section226(2)
2. e) file a copy of the pre­scribed state­ment with­in the time specified

in sec­tion 200(3) or the pro­vi­so to sec­tion 206C(3) (up to 1–7-

2012)

1. f) file the pre­scribed state­ment with­in the time spec­i­fied in

section206A(1)

(Sub­ject to certain

con­di­tions)

1. a) Rs.250 if total income as com­put­ed by AO is up to

Rs. 1 lakh

1. b) Rs. 500 if total income as com­put­ed by AO is more

than Rs. 1 lakh but up to Rs. 2 lakhs

1. c) Rs.1,000 if total income as com­put­ed by AO is more

than Rs. 2 lakhs

1. d) Rs.250 in any oth­er case

1. a) Rs.500 if total income as com­put­ed by AO is up to

Rs. 1 lakh

1. b) Rs.1,500 if total income as com­put­ed by AO is more

than Rs. 1 lakh but up to Rs. 2 lakhs

1. c) 1% of assessed income sub­ject to max­i­mum of Rs.

10,000 if total income as com­put­ed by AO is more than

Rs. 2 lakhs

1. d) Rs. 500 in any oth­er case

turnover or gross receipts in any previous

exceeds the thresh­old limit

read with

Rule

114B

1. a) Sale or pur­chase of any immov­able property

val­ued at Rs. 5 lakhs or more

1. b) A time deposit with a bank­ing com­pa­ny exceed­ing Rs. 50,000
2. c) A deposit in any account with Post Office Sav­ing Bank exceed­ing Rs. 50,000
3. d) A con­tract of a val­ue exceed­ing Rs. 1 lakh for sale or pur­chase of securities
4. e) Pay­ment to hotels and restau­rants against their bills for an amount exceed­ing Rs. 25,000 at any one time
5. f) Pay­ment in cash for pur­chase of bank draft or pay orders or banker’s cheque for an amount Rs. 50,000 or more dur­ing any one day
6. g) Deposit in cash aggre­gat­ing Rs. 50,000 or more dur­ing one day with a bank
7. h) Pay­ment in cash in con­nec­tion with trav­el to any for­eign coun­try of an amount exceed­ing Rs. 25,000 at any one time
8. i) Pay­ment of an amount of Rs. 50,000 or more to a Mutu­al Fund for pur­chase of units or

to a com­pa­ny for acquir­ing shares or deben­tures or bonds issued by it

1. j) Pay­ment of an amount of Rs. 50,000 or more to RBI for acquir­ing bonds issued by it
2. k) Pay­ment of an amount of Rs. 50,000 or more in a year as life insur­ance pre­mi­um to an

insur­er

1. l) Pay­ment to a deal­er for pur­chase of jew­ellery or bul­lion of an amount of Rs. 5 lakh

or more at any one time or against a bill for an amount of Rs. 5 lakh or more.

trans­fer­ee to that effect

1. Rs. 75,00,000 if immov­able prop­er­ty is com­prised with­in in area of Greater Bombay
2. Rs. 50,00,000 if immov­able prop­er­ty is com­prised with­in in area of Union ter­ri­to­ry of Delhi
3. Rs. 25,00,000 if immov­able prop­er­ty is com­prised with­in in area of Cal­cut­ta Met­ro­pol­i­tan Area and Madras Met­ro­pol­i­tan Plan­ning Area
4. Rs. 25,00,000 if immov­able prop­er­ty is com­prised with­in in area of Ban­ga­lore Met­ro­pol­i­tan Region and the areas declared as Ahmed­abad Urban Devel­op­ment Area and the areas com­prised in the city of Ahmedabad
5. Rs. 25,00,000 if immov­able prop­er­ty is com­prised with­in in area of Pune
6. Rs. 20,00,000 if immov­able prop­er­ty is com­prised with­in in areas oth­er than those men­tioned above and noti­fied vide SO 339(E), dat­ed 8th May, 1989; SO 53(E), dat­ed 19th Jan­u­ary, 1990 and SO 180(E), dat­ed 14th March, 1991
7. Rs. 10,00,000 if the agree­ment for trans­fer is entered into, on or before the 31-07-1995

trans­fer­ee to that effect

offi­cer, in favour of any oth­er per­son dur­ing the

pen­den­cy of any pro­ceed­ing under the act of

which notice is served on the assessee to be con­sid­ered as void

val­ue of asset trans­ferred exceeds 10,000

of finan­cial year or with­in thir­ty days from the date

of the com­ple­tion of the pro­duc­tion of the film,

whichev­er is earlier

engaged by him in such pro­duc­tion which

exceeds Rs. 50,000

prop­er­ty

draft or elec­tron­ic clear­ing sys­tem (Sub­ject to

cer­tain conditions)

bank draft or elec­tron­ic clear­ing sys­tem (Sub­ject

to cer­tain conditions)