Long Term Capital Gain from transfer of listed equity shares

Dividend and interest on Mutual Funds & Companies

Gains on Compulsory acquisition of Urban Agricultural Land

menior Citizen usually > 65 years

No/Low retirement income

House of substantial value

Approach Bank

Reverse Mortgage the house

=btain Lumpsum sum or EMIǯs from Bank till
death

Lender will sell house on death

=ption will be given to legal heirs to

purchase the house

Further regular mortgages are possible

Excellent retirement plan (and now tax free)

 Ȉ Income from House Property & Capital Gains
Ȉ Business carried on within jurisdiction
Local
Authorities Ȉ Business of supplying water/electricity outside/within jurisdiction

Ȉ Approved by Govt.
Research Ȉ National Laboratories etc.
Association

Ȉ Press Trust of India (PTI) & United News of India (UNI) are notified
Ȉ Application of income should be solely for the purpose of collection
News
agencies
and distribution of news
 Ȉ Approved by Central Govt. For e.g. ICAI, ICmI, AICMA etc.
Ȉ All types of income are exempt except
Professional Ȉ House Property, rendering of specific service and interest income
Institutes

Ȉ Armed forces
Regimental Ȉ Fund for welfare of armed forces
Fund

Ȉ Investment of fund should be in specific forms/modes

Ȉ Approval available in cycles of 3 years from CIT
Employee Ȉ Purpose should be to give cash benefit incld. Medical assistance to employees & their
Welfare fund families
 Ȉ Approved by KVIC
Pension Ȉ Khadi includes promotion of village industries
Fund

Ȉ Income from regional projects of mAARC and

EEC & interest, dividend & capital gains of EEC are exempt
mAARC

Insurance
Ȉ Income of IRDA
Regulators
 Ȉ Êentral lectricity
egulatory Authority
Ê
Ê

Ȉ mhould be registered under m BI

Ȉ mhould be set up by
Mutual Fund Ȉ Public mector Bank, Public Financial Institution or approved by
BI

Ȉ Fund set by stock or commodity exchanges

Investor Ȉ Êontributions received by stock exchanges
Protection Fund
 Ȉ Applicable to Venture Capital Funds, Undertakings & Companies
Ȉ For promotion of Nanotechnology, biotech, infrastructure, biofuel, hotel-
Venture convention of > 3000 capacity, hardware, software, seed research and
Capital Funds development

Ȉ House Property and Income from =ther sources are exempt

Trade Unions

Ȉ Interest & Capital Gains

Provident
Funds
 Ȉ Employee mtate Insurance Fund for welfare of employees
EmIF

Ȉ mchedule tribes of Nagaland, Manipur, Arunachal, Mizoram,

Ladakh etc.
mT Ȉ mource of income should be from that region

Ȉ mikkimiese from source in mikkim

mikkimiese Ȉ Not available to women who marries a non-mikikimese
 Ȉ Agricultural Produce Marketing Committees
APMCǯs
Ȉ molely for Marketing Agricultural Produce

Ȉ Promotion of mchedule Caste/mchedule Board

mC/mT Board

Ȉ Established for promoting interests of

Ȉ Muslims, Christians, mikhs, Buddhists, Zoroastrians.
Minorities
Board
 h0(23C)
Income of Income of Income of
national educational hospitals
funds institutions
National Funds
Ȉ P.Mǯs National Relief Fund
Ȉ P. M.ǯs Promotion of Folk Arts Fund
Ȉ P.M.ǯs Aid to mtudents Fund
Ȉ National Foundation for Communal Harmony
Ȉ Public Religious Purpose notified by Central
Government
Universities or educational institutes existing solely for
educational purpose and not for profit

mubstantially financed by Government

Not for profit Privately run Universities/institutes if

annual receipts are < h crore.

University not covered above can apply for exemption

from Chief Commissioner of Income Tax
Exists for philanthropic purposes

Financed by Government

=r Aggregate receipts do not exceed h cr

Approved by Chief Commissioner

Newly established undertakings in FTZ
Ȉ Manufacturing and computer software/hardware units or IT
enabled products/services (BP=/KP= etc)
Ȉ New entity
Ȉ New machinery/infrastructure
Ȉ Repatriation of sales proceeds
Ȉ Audited books of accounts
Ȉ Profits proportionate to Export turnover/Total Turnover is
exempt
Ȉ Exemption available for units established before h-4-05 for h0
consecutive years
Newly Established units in mEZ
Ȉ Letter from Development Commissioner. mhould be a certified
Entrepreneur
Ȉ Manufacturing after 2005-06
Ȉ New entity
Ȉ New Machinery
Ȉ Audited books of accounts
Ȉ Repatriation of proceeds
Ȉ Proportionate deduction of profit i.e. profit X Export
Turnover/Total Turnover
Ȉ h00% deduction for 5 years. 50% exemption for next 5 years
Export =riented Units
Ȉ h00% E=Us
Ȉ Newly established manufacturing units
Ȉ New machinery
Ȉ Audited books of accounts
Ȉ Repatriation of proceeds
Ȉ Proportionate deduction
Ȉ No deduction allowed beyond March 3h, 20h2
Hand Made wooden Articles
Ȉ Human mkill
Ȉ New undertaking
Ȉ New machinery
Ȉ 90% sales should be in overseas market
Ȉ Employment of 20 or more workers
Ȉ Repatriation of profits
Ȉ Exemption should be claimed not automatic
Ȉ Not available after March 20h0 therefore irrelevant
 Classify the exemptions and prepare a hierarchy based on

Location, Income/Receipts, Activity, awards & compensations & Entity

Give your comments on the apparent objectives of each type of deduction and
relevance in todayǯs socio-economic realities.