ITR-5 e-filing utility notified

The Income-tax Department has notified the ITR-5 efiling utility for e-filing the Income tax return in respect of Partnership firms.

This utility can be used by the following assessees :-

– a person being a Firm (Including LLP),

– AOP ,

– BOI,

– Artificial Judicial Person referred to in Section 2(31) of Income-tax Act,1961 ,

– Co-operative society and

– Local Authority

Click the link below to download the excel efiling utility provided by


Income-tax Calculator for last 12 Assessment years

The Income-tax department has provided an online utility for calculation of Tax Liability in respect of the following types of assessees :-

1) Individuals

2) Hindu Undivided Family

3) BOI (Body of Individuals)

4) AOP (Association of Persons)

5) Firms

6) Domestic Companies

7) Foreign Companies and

8 ) Co-operative Societies

Click here to use this utility.

Source :-



v     Changes in Tax Slabs :

The existing differentiation of Male and Female assessees has been removed. The tax rates for all Individual assessees below 60 years of age for the year 2012-13 is as follows :-

Income Level                                             Rate of Tax

Upto Rs. Rs. 2,00,000/-                                                Nil

Rs. 2,00,001 to Rs. 5,00,000/-                                      10%

Rs. 5,00,001 to Rs. 10,00,000/-                           20%

Above Rs. 10,00,000/-                                        30%


In case of Resident Individuals aged Sixty years or above will be taxed as under :-

Income Level                                             Rate of Tax

Upto Rs. Rs. 2,50,000/-                                                Nil

Rs. 2,50,001 to Rs. 5,00,000/-                                      10%

Rs. 5,00,001 to Rs. 10,00,000/-                           20%

Above Rs. 10,00,000/-                                        30%


In case of Resident Individuals aged Eighty years or above will be taxed as under :-

Income Level                                             Rate of Tax

Upto Rs. Rs. 5,00,000/-                                                Nil

Rs. 5,00,001 to Rs. 10,00,000/-                           20%

Above Rs. 10,00,000/-                                        30%

Benefit Chart

Income (Rs.)

Current Tax

New Tax


500000 32000 30000 2000
750000 82000 80000 2000
1000000 152000 130000 22000
1500000 302000 280000 22000
2000000 452000 430000 22000


There is no change in the rate of Income-tax in respect of Partnerships firms. They will be charged @ 30% as income-tax on their income.


There is no change in the rate of Income-tax in respect of Companies. They will be charged @ 30% as income-tax on their income.


No Surcharge in respect of Individuals, HUF & Partnership firms.

The existing surcharge of five per cent in case of a domestic company shall continue to be levied.


Education Cess @ 2% and Secondary Education Cess @ 1% shall continue to be levied in respect of all types of assessees.

v     Minimum Alternate Tax (MAT) which was hitherto levied on Companies and LLPs are now applicable to assessees other than Companies also.

v     New Provision for Deduction of tax at Source (TDS) on sale of immovable properties introduced. As per this new provision , the transferee , at the time of making the payment or crediting any sum by way of consideration for transfer of immovable property , is required to deduct and deposit the TDS @ 1% of the consideration (sale value) , if the sale value exceeds :-

(a) fifty lakh rupees in case such property is situated in a specified urban agglomeration; or

(b) twenty lakh rupees in case such property is situated in any other area.

This will take effect from 1st July 2012

v     It is proposed to provide that the seller of bullion and jewellery shall collect tax at the rate of 1% of sale consideration from every buyer of bullion and jewellery if sale consideration exceeds two lakh rupees and the sale is in cash. This would be irrespective of the fact whether buyer is a manufacturer, trader or purchase is for personal use.

This will take effect from 1st July 2012

v     It is proposed to amend the provisions of section 139 so that furnishing of return of income under section 139 may be made mandatory for every resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India. Furnishing of return by such a resident would be mandatory irrespective of the fact whether the resident taxpayer has taxable income or not.

This amendment will take effect retrospectively from the 1st day of April, 2012 and will accordingly apply to assessment year 2012-13 and subsequent assessment years.

v     A new clause is proposed in respect of a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares. In such a case if the consideration received for issue of shares exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to income-tax under the head “Income from other sources. However, this provision shall not apply where the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund.

v     A concessional rate of tax @ 5% has been introduced in respect Interest Income from notified infrastructure investments by Non-residents during the period from 1st July 2012 to 1st July 2015.

v     The threshold limit for the purpose of requirement of audit of accounts u/s. 44AB of the Income-tax act has been enhanced to Rs. 1 Crore from the existing limit of Rs. 60 Lakhs in case of assessees carrying on business and in respect of professionals, it has been enhanced to Rs. 25 Lakhs from the existing limit of Rs. 15 lakhs.

v     It is proposed that a resident senior citizen, not having any income chargeable under the head “Profits and gains of business or profession”, shall not be liable to pay advance tax and such senior citizen shall be allowed to discharge his tax liability (other than TDS) by payment of self assessment tax.

v     A new provision has been made for granting relief from long term capital gains tax to an individual or an HUF on sale of a residential property (house or plot of land) in case of re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector which is utilized by the company for the purchase of new plant and machinery.

v     An deduction of Rs.5000/- is being proposed u/s. 80 D in respect of expenditure on preventive health check-up. This is within the overall limit of Rs. 15000/- in respect of mediclaim payments. It is also proposed to amend that the payments in respect of the expenditure on preventive health check up shall be made in either in cash or by any other mode.

v     Under the proposed new section 80TTA of the Income-tax Act, a deduction up to an extent of ten thousand rupees in aggregate shall be allowed to an assessee, being an individual or a Hindu undivided family, in respect of any income by way of interest on deposits (not being time deposits) in a savings account (held with a bank,post office or post office)

v     A new provision has been introduced to levy a fee of Rs. 200/- per day for late furnishing of TDS returns from the due date of furnishing the return till the date of filing the TDS returns. In addition to this fee, a penalty ranging from Rs. 10000 to Rs. 100000 is also proposed to be levied for not furnishing the TDS return within due date.

v     Transfer Pricing regulations made applicable to certain domestic transactions also.

v     Time limit for completion of assessments has been increased by 3 months.

v     Presumptive method of taxation (8% of Turnover/Gross receipts) u/s. 44AD will not be applicable for the following :-

(i)                a person carrying on profession as defined under the act

(ii)              persons earning income in the nature of commission or brokerage

(iii)            person carrying on agency business.

v     Deduction on account of donations to charitable institutions u/s. 80G in excess of Rs.10000/- will be allowed only if the same is made otherwise than in cash.

v     Securities Transaction tax (STT) in respect of Cash delivery transactions has been reduced from 0.125% to 0.1%.


v     The rate of service tax is being increased from 10% to 12%.

v     A negative list approach for Service tax is being introduced. Now, all the services except those specified in the Negative list shall be liable to service tax.

v     Penalty waiver scheme for Service tax assessees in respect of service tax due on renting of immovable property service is being introduced. As per this scheme, if the Service tax along with Interest due is paid on or before the expiry of 6 months from the date of notification of this amnesty scheme, the entire penalty will be waived.

Relief for Salaried assessees having income less than 5 Lakhs !!!

The Income-tax department, vide its NOTIFICATION NO. 9/2012 [F. NO.225/283/2011-ITA(II)], DATED 17-2-2012 has exempted the persons (salaried assessees) with income less than 5 lakhs from furnishing their return of Income.

For whom this benefit is available ?

1)      The assessee should be an Individual; and

2)      The Total Income does not exceed Rs. 500000/- . Here Total income means, income after claiming exemptions, deduction u/s. 80C,etc.,.; and

3)      Such total income shall be ONLY from the following heads:-

i)                    “Salaries”

ii)                  “Income from other Sources” , by way of Interest from a Savings account in a bank, not exceeding Rs. 10,000/-.

Conditions for availing this benefit :-

1)      The salaried employee has to report correct PAN to his employer.

2)      The salaried employee has to correctly declare his income from Savings Bank Interest to the employer and the employer has to deduct the tax there on.

3)      The salaried employee has to obtain Form 16 from his employer with the details of PAN, Income ,  Tax Deducted at Source thereon and the Tax Deposit details.

4)      The salaried employee shall ensure that the tax due on the above income has been fully discharged through tax deduction at source and the same has been deposited by the employer into the Central Government account.

5)      The net result of Tax computation shall not be refund.

6)      The salaried employer has received salary from only one employer during the year.

7)      The Income-tax department should not have issued any notice to the assessee requiring him to file his return of Income.

Only if ALL the above conditions are satisfied, the assessee can avail the benefit of non filing of his return of Income. If any ONE of the above conditions is not satisfied, the assessee has to necessarily file his/her return of income.

Myths & Facts :-

Sl. No.




The basic exemption limit has been enhanced to Rs. 5 Lakhs The basic exemption limit has not been enhanced. The relief is in respect of return filing requirements only.


All assessees with Rs. 5 Lakhs of Income need not file their return of Income. Only assesees having Income from Salary & Interest on Savings Account having total income less than 5 Lakhs can make use of this provision. All other assessees shall file their return of income even if the Income is  less than Rs. 5 Lakhs.


Assessees with income upto Rs. 5 Lakhs need not pay tax. Tax due has to be necessarily discharged/paid by way of Tax deduction at Source by the employers.


There is no obligation on the part of the assessee with income less than 5 Lakhs It is necessary that the assessee declares his Interest income upto Rs. 10000/- to his employer and the tax due on the same has been deducted at source.


Salaried employees need not declare their income other than Salaries & Interest on SB account. If the assessee has other sources of income (viz.,) Capital Gains, Rent, FD Interest,Business , etc., he has to necessarily file his return of income and pay tax irrespective of the fact that the income is below or above 5 Lakhs.


Only TDS certificate (Form 16) from the employer is sufficient. Not only the TDS Certificate, the remittance of TDS deducted on account of salaries to Central Government account shall also be ensured by the employee.


Salary income means income after considering the Interest on Self Occupied Housing Loan. Salary Income does not include the loss arising on account of Interest on Housing loan in respect of Self Occupied/Let out Property. Hence , if an assessee has any Interest on Housing loan to be claimed, he has to file the return of Income compulsorily.

Other Points :-

  • Even if there is a small amount of tax payable/refund , this benefit cannot be availed. Hence , as per Form 16, the Final tax payable should be “NIL”.
  • If the assessee has been employed with more than one employer during the year, this benefit cannot be availed.
  • If the assessee has Salary and Interest income below 5 Lakhs but has not furnished the Interest Income details to his employer for inclusion in the Form 16, this benefit cannot be availed.
  • Many banks and financial institutions require the copies of the Income-tax returns to consider the loan applications. In the absence of filing, the applicants may face hardship in obtaining a loan.
  • Assuming a salaried assessee is maintaining a minimum balance of Rs. 10,000/- in a savings account, his Savings Bank Interest for a year will be RS.800/-. (Assuming the rate of Interest @ 8%) . On account of this provision, the assessee’s tax liability will be more by Rs. 80/- (Rs. 800/- x 10%). Till last year, many of the salaried employees would not have declared this income and paid tax on the same.

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The relevant notification is reproduced below :-

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