Taxes

The return of income is a statement furnished by an assessee, stating the total amount of income earned by him during the previous year.

The provisions for voluntary return income fall under Sections 139(1), (4A), (4B), 4(C).

• Company
  
  

• Firm
  
  

• A person, other than a company
  
  

• A person in receipt of income, derived from property held under a trust for religious or charitable purposes.
  
  

• Chief Executive Officer of every political party
  
  

• Scientific research association, news agency, association/institution for control/supervision of a profession, institution for development of khadi and village industries, fund institution educational/medical institution, trade union (Applicable from Assessment Year 2003-2004)

• For a company - any income or loss
  
  

• For a partnership firm - any income or loss.
  
  

• For a person other than company and firm - income in excess of the amount not chargeable to tax.
  
  

• For a person in receipt of income derived from property held under a trust for religious or charitable purposes - if the income, without giving exemption under Section 11 or 12, exceeds the maximum amount not chargeable to tax.
  
  

• For a Chief Executive Officer of every political party - if the income (without giving exemption under Section 13A) exceeds the maximum amount not chargeable to tax.
  
  

• For a scientific research association, news agency, association/institution for control/supervision of a profession, institution for development of khadi and village industries, fund institution, educational/medical institution, trade union - if the income, without giving exemption under Section 10, exceeds the maximum amount not chargeable to tax.

As per the first proviso to Section 139(1), when income is less than the exemption limit or equal to the amount of exemption unit and it is a person (other than a company, political party or charitable trust) who does not furnish return under Section 139 (1) and resides in a specified area, shall submit his return of income in form 2C, must file a return if he fulfils any one of the following conditions at any time during the previous year:

1. Ownership/lease of a motor vehicle.
   
   

2. Occupation of any category or categories of immovable property as may be specified by the board by notification whether by way of ownership or tenancy or otherwise.
   
   

3. Incurred expenditure on himself or any other person on travel to a foreign country other than Bangladesh, Bhutan, Maldives, Nepal, Pakistan or Sri Lanka (not being a travel to Saudi Arabia for Hajj or travel to China on pilgrimage to Kailash Mansarovar).
   
   

4. Subscription of a cellular telephone (not being a wireless in local loop telephone).
   
   

5. Holder of a credit card (not being an add-on card or not being a Kisan credit card, issued by a bank or an institution).
   
   

6. Member of a club where entrance fees charged is Rs 25,000 or more.
   
   

7. Expenditure of Rs 50,000 or more during the previous year towards consumption of electricity.

The above provision shall not apply to such persons who are notified by the government.

The government has specified that the above provision is not applicable in the case of a Non-Resident Indian (NRI).

Also an individual, who is at least 65 years of age and not engaged in any business /profession, is not subject to conditions 2 or 4.

A list of return forms to be filled by different assessees:

Assessees	Form No
For companies, other than those claiming exemption under Section 11	1
For assesses (other than companies and those claiming exemption under Section 11) whose total income includes income or loss under the head "profits and gains of business or profession"	2 or 2D
For a person who is required to file a return under proviso to Section 139(1)	2C
For assesses (other than companies and those deriving income from property held for charitable or religious purposes, claiming exemption under Section 11) whose total income does not include income or loss under the head "profits and gains of business or profession"	3 or 3D
For Assessees being resident individuals or resident Hindu Undivided Families not having any income/loss from a business or a profession or capital gains or agricultural income.	3 or 2D or 2E (Naya Saral)
Assessee being a resident individual who satisfied the following conditions: Income from salary before giving deductions under Section 16 does not exceed Rs 150,000. The taxpayer does not have any income/loss from business/profession capital gain or agricultural income. He is not in receipt of income from which tax has been deducted by a person other than his employer.	3 or 2D or 2E or 16AA
For assesses, including companies claiming exemption under Section 11	3A

Category	Due date
Where the assessee is a company	31st October
Where the assessee is a person other than a company: Where the accounts of the assesee are required to be audited under any law Where the assessee is a working partner in a firm whose accounts are required to be audited under any law Where the assessee is covered by the first proviso to Section 139(1)	31st October
In any other case	31st July

Section 139 of the IT Act deals with the filing of returns of income. The following are the provisions of this Section:

1. The Act requires the assessee to furnish the particulars of income exempt from tax, assets of prescribed nature, value and belonging to him, his bank account and credit card held by him, expenditure exceeding the prescribed limits and such other prescribed outgoings.
   
   

2. It is also required of the assessee to furnish the particulars of the location and style of the principal place of business or profession and all branches thereof, the names, addresses and shares of his partners or fellow members in the firm or AOP (Association of Persons) or BOI (Body of Individuals) in which he is a partner or member as the case may be.
   
   

3. Under Section 139(1) of the Income-tax Act, an NRI, like any other tax-payer, is required to voluntarily file his income tax return in Form No. 2 or Form No. 3, as the case may be, on or before 31st July.

The Electronic Furnishing of Return of Income Scheme was introduced in 2004.

Under this scheme, eligible assessees can file their returns of income electronically through authorised persons to act as e-return intermediaries on or before the due date.

The intermediaries digitise the data of such returns and transmit the same electronically to the e-filing server of Income Tax Department under their digital signatures.

Any person, except an AOP/BOI, who has been allotted a permanent account number (PAN) and who is assessed or is assessable to tax in any of the sixty cities, which are presently on Income Tax network is eligible to file his return of income under this scheme.

This is an optional scheme, introduced in Chennai, Kolkara, Mumbai, New Delhi, Ahemedabad, Bangalore and Hyderabad.

1. The annexure, statements and columns in the return of income, relating to computation of income chargeable under each head of income, computation of gross total income and total income should be duly filled in.
   
   

2. The return of income must be accompanied by the following:

   
   
   

   • A statement showing the computation of tax payable on the basis of return.
     
     

   • The audit report referred to in Section 44AB.

   
   
   

3. The proof of the tax, if any, claimed to have been deducted at source and the advance tax and tax on self-assessment, if any, claimed to have been paid.
   
   

4. The proof of the amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (income-tax payers) Act 1974.
   
   

5. Where regular books of account are maintained by an assessee, the following must be included:

   
   
   

   • Copies of manufacturing account, trading account, profit and loss account or income and expenditure account or any other similar account and balance sheet.
     
     

   • The personal account of the proprietor and in the case of a firm, the personal accounts of the partners or members, and in case of a partner or member of a firm, his personal account in the firm.

   
   
   

6. Where the accounts of the assessee have been audited, copies of the audited profit and loss account and balance sheet and a copy of the auditors report.
   
   

7. Where an audit of cost accounts of the assessee have been conducted under Section 233 B of the Companies Act, the auditors' report under that Section.
   
   

8. Where regular books of accounts are not maintained by the assessee, a statement, indicating the amount of turnover or gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, as also the amount of total sundry debtors, sundry creditors, stock in trade and cash balance as at the end of the previous year.

• In the case of an individual - by the individual himself, or where the individual is not in India, by a person duly authorised by him. Where the individual is mentally incapacitated from attending the affairs, by his guardian or a person competent to act on his behalf.
  
  

• In the case of a Hindu Undivided Family - by the Karta or where the Karta is absent from India or is mentally incapacitated from attending the affairs, by any other adult member of the family.
  
  

• In case of a company - by the Managing Director or where there is no Managing Director for any unavoidable reason, by any director of the company.
  
  

• In case of a firm - by the Managing Partner or in the absence of such Managing Partner by any Partner not being a minor.
  
  

• In case of local authority - by the Principal Officer.
  
  

• In the case of a political party - by the Chief Executive Officer of such party.
  
  

• In the case of any other association, by any member of the association or the principal officer.
  
  

• In the case of any other person, by that person or by some other person, competent to act on his behalf.

Yes, the assessee can file a return on the next day that the office is open. In such cases, the return will be considered to have been filed within specified limit.

If the return is not furnished within the time prescribed under Section 139(1) or within the time permitted under a notice issued under Section 142 (1), the person may furnish the return of any previous year at any time before the end of one year from the end of the relevant assessment year, or before the completion of the assessment year.

For e.g. a person is supposed to file a return on October 31, 2004 for the Assessment Year 2004-05. However, for some reason, if the person does not file his return by October 31, 2004, such return submitted after the said date will be considered as belated return.

If an assessee files a belated return, he would be liable for penal interest under Section 234A of Income Tax.

If a person has already submitted his return of income and subsequently he discovers any omission or wrong statement therein, he may furnish a revised return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment.

A second revised return can be filed under Section 139(5), correcting omissions or wrong statements made in the first revised return, for the first revised return, filed under Section 139(5) would, in law, be a return under Section 139 (1) as well.

There is no provision in the Income- Tax Act to seek permission to revise a return. It is the right of the assessee to submit such return. However, an application seeking permission to revise a return , as originally filed, cannot be treated as revised return.

For the purposes of Section 139 (9), a return of income is regarded as defective, unless all the above conditions, mentioned for details required to be filled in, are fulfilled.

The permanent account number is allotted by the assessing officer to any person for the purpose of identification.

The following persons should apply for allotment of permanent account number in Form No 49A:

• Every person, if his total income, assessable during the previous year, exceeds the maximum amount which is not chargeable to tax or any person, carrying on business or profession, whose total sales, turnover or gross receipts, are or is likely to exceed Rs 500,000 in any previous year and who has not been allotted any permanent account number is obliged to obtain permanent account number.
  
  

• A person who is required to furnish return of income under Section (4A) of Section 139 ( i.e. charitable trust) is also required to obtain permanent account number before the end of the accounting year.
  
  

• The Central Government may specify (by notification in the official gazette) any class or classes of persons by whom tax is payable under the Income Tax Act or any tax or duty is payable under any other law for the time being in force, including importers and exporters to apply to the assessing officer for the allotment of a permanent account number.

• Returns to, and/or correspondence with any Income Tax Authority
  
  

• Challans for payment of direct taxes
  
  

• Application for installation of a telephone connection (including a cellular telephone)
  
  

• Application for opening a bank account.
  
  

• Documents pertaining to sale or purchase of a motor vehicle (other than two wheelers)
  
  

• Documents pertaining to sale or purchase of immovable property valued at Rs 500,000 or more
  
  

• Documents pertaining to a time deposit/fixed deposits exceeding Rs 50,000 with a bank
  
  

• Documents pertaining to deposits exceeding Rs 50,000 in any account with a Post-Office Savings Bank
  
  

• Documents pertaining to a contract of a value exceeding Rs 1 million (Rs 10 lakhs) for sale or purchase of securities (shares, debentures)
  
  

• Payment to hotels and restaurants against their bills for an amount exceeding Rs. 25,000 at any one time

The provisions of Section 139 A shall not apply to the following class or classes of persons:

• Persons who have agricultural income and are not in receipt of any other income, chargeable to income tax
  
  

• NRIs
  
  

• Central Government, State Government and Consular Officers, in transactions where they are the payers.

There is no tax implication while making an investment in shares. There are tax benefits to investing in some pre-approved companies as mentioned in the third point below. The tax implication arises only at the time of sale of shares as under:

• If certain eligible equity shares are purchased on or after March 1, 2003 but before March 1, 2004 and are transferred after 12 months, then the gain on the sale of such shares will be entitled for exemption under Section 10(36) of the Income Tax Act, 1961 by eligible equity shares. This applies to any equity shares, which form part of the BSE 500 index of the Mumbai Stock Exchange, the transaction of purchase and sale of which have been entered into through a recognised stock exchange in India and any equity shares, allotted through a public issue on or after March 1, 2003 and listed in a recognised stock exchange in India before March 1, 2004 and the transaction of such shares, if entered into through a recognised stock exchange in India.
  
  

• After October 1, 2004, any equity share, which has been sold through a recognised stock exchange and on which STT (Securities Transaction Tax) has been paid would be entitled to exemption from Long Term Capital Gains under Section 10 (38) of the Act. Similarly, in case of Short Term Capital Gain of such shares, the gains shall be taxed only at 10%, plus surcharge and education cess.
  
  

• Under Section 80C, any subscription to equity shares or debentures forming part of any eligible issue of capital, approved by the Court or an application made by a public company or subscription to such eligible issue by a public finance institution in a prescribed form, would be eligible to deduction subject to the condition of this Section. Also, subscription to any unit of a mutual fund, approved by the board in respect of any mutual fund, referred to in Clause (23D) of Section 10, would also be entitled.

Under Section 55(2)(AA), bonus on equity shares has a zero (nil) cost of acquisition. The holding period is calculated from the date of allotment of equity shares. The net sales proceeds are treated as the capital gain. The period of holding of such issue is reckoned from the date of the allotment of such issue.

The cost of acquisition of the rights issue on equity shares is the amount actually paid for acquiring such right according to Section 55(2) (AA) (iii). The holding period is reckoned from the date of allotment.

Where there is a transfer of these rights, the cost of acquisition of such rights is to be taken as 'nil' according to Section 55(2) (AA) (ii). The sale price of such transferred rights will be taken as capital gain.

The period of holding in the hands of the transferor is computed from the date of offer, made by the company to the date of renouncement.

In case of the transfer of such rights, the cost of acquisition is the aggregate of the amount of purchase price, paid to the transferor to acquire the right entitlement and the amount, paid by him to the company for subscribing to such right offer of share.

The period of holding in the hands of the transferee will be from the date of allotment of such shares.

The split shares represent the sub-divided shares of a lot of shares. The cost of such shares gets proportionately divided and the period of holding also continues to be the same as that of the original lot.

In case of equity or preference shares in a company, if the shares are held for more than 12 months immediately prior to its transfer then it is known as long term capital asset and on transfer of long term capital asset, long term capital arises. Long term capital gains arising on transfer of equity shares will not be chargeable to tax from assessment year 2005-06 if such transaction is covered by securities transaction tax under section 10(38).

In case of multiple demat accounts, the capital gains on sale of shares has to be computed on the basis of the FIFO with reference to the particular account from where the shares are sold. The FIFO method was introduced to bypass the process of determining the cost on one to one basis with the particular DP.

No, Short term capital gains cannot be set off by investing in capital gains bonds under Section 54EC. This benefit is only in respect of long-term capital gain.

A capital loss (short-term/long-term) can be carried forward for a maximum period of 8 years from the assessment year in which the loss was first incurred.

A short-term capital loss can be set off against any capital gain (long-term and short-term). However a long-term capital loss can be set off only against a long-term capital gain.

The Securities Transaction Tax has been introduced by Chapter VII of the Finance Act (No.2) Act, 2004. It provides for a levy of a transaction tax on the value of certain transactions. These transactions include the purchase and sale of equity shares in a company, purchase and sale of units of an equity growth fund, sale of a unit of an equity growth fund to the mutual fund and sale of a derivative. The transaction tax will be payable on all transactions that have taken effect from October 1, 2004.

	Transaction in recognised stock exchange in India				Sale of unit of an equity oriented fund to the mutual fund
	Purchase of equity shares, units of equity oriented mutual fund (delivery based)	Sale of equity shares	Sale of equity shares	Sale of derivative
Whether securities transaction tax (STT) is applicable	Yes	Yes	Yes	Yes	Yes
Who has to pay STT	Purchaser	Seller	Seller	Seller	Seller
Rate of STT -from June 1, 2006	0.125%	0.125%	0.025%	0.017%	0.25%
Tax treatment of long - term capital gain in the hands of seller	NA	Exempt from tax under section 10(38) [long - term capital loss if any shall be ignored]	Income is generally treated as business income	Income is generally treated as business income	Exempt from tax under section 10(38) [long-term capital loss if any shall be ignored]
Tax treatment of short-term capital gain in the hands of seller	NA	Taxable at the rate of 10% (+surchage +education cess) under section 111A	Income is generally treated as business income	Income is generally treated as business income	Taxable at the rate of 10% (+surchage +education cess) under section 111A
Tax treatment of business income in the hands of seller	NA	If income is shown as business income, one can claim tax rebate under section 88E	One can claim tax rebate under section 88E	One can claim tax rebate under section 88E	One can claim rebate under section 88E
Who will collect STT	Stock exchange	Stock exchange	Stock exchange	Stock exchange	Mutual fund

• Surcharge: Nil, Education cess: Nil
  Note: STT is not applicable in case of Government securities, bonds, debentures, units of mutual fund other than equity oriented mutual fund and in such cases, tax treatment of short - term and long - term capital gains shall be as per normal provisions of law.

Effect of levy of the Securities Transaction Tax

1. Long-term capital gain, arising to an investor from the sale of these specified securities, shall be exempt from tax under section 10(38).
   
   

2. Correspondingly, long-term capital loss, arising from these specified securities, cannot be set-off against any other gain/income. This loss shall lapse.
   
   

3. Short-term capital gain, arising to an investor (incl. FII) from the sale of such securities, shall be charged at 10%, plus surcharge and education cess under section 111A.
   
   

4. This exemption of long-term capital gain is available to all assessees, including FIIs.
   
   

5. This exemption is available only to those assessees, who hold these specified securities as capital assets (investments) and not as stock-in-trade.
   
   

6. Correspondingly, at the year-end, the stock cannot be valued at cost or market value; whichever is lower, as it is not stock-in-trade. No deduction in the value of investments would be permissible.
   
   

7. Securities Transaction Tax will be applicable only with effect from October 1, 2004. For the earlier period, i. e. from April 1, 2004 to September 30, 2004, the earlier law will be operative.
   
   

8. The exemption of long-term capital gain is available only to transactions in relation to the specified securities. Exemption will not be available to transactions, not specifically mentioned in the list above.
   
   

9. The exemption would be available even in respect of specified securities, purchased prior to the introduction of Securities Transaction Tax but sold after the operative date.
   
   

10. The exemption is available to all shares. The earlier exemption, under section 10(36), was restricted to shares, listed in BSE 500, which were purchased after March 1, 2004 but before April 1, 2004 and sold, after being held for more than twelve months.
    
    

11. The exemption is available to all specified securities, sold through a recognised stock exchange. Private deals or transactions, not routed through a recognised stock exchange, will not be covered.
    
    

12. The purchase of the specified securities could be through any mode and need not be through a recognised stock exchange.
    
    

13. The exemption is not available to other securities, which are not specified, e.g. preference shares, bonds, debenture, etc.
    
    

14. The exemption is not available to transactions where Securities Transaction Tax has not been paid.
    
    

15. Securities Transaction Tax, paid for the purchase and for the sale of the specified securities, will not be available as a deduction. No deduction for the Securities Transaction Tax is incurred for purchase or sale of the specified securities.
    
    

16. Since long-term capital gain would now be exempt from tax, Section 14A would come into play. This means that no expense shall be allowed to be claimed as a deduction in respect of income, which is exempt. For example, expenses like interest, rent, salaries, wages, electricity, telephone, water, etc. and other administrative expense will not be allowed, as a deduction since the income earned is exempt.
    
    

17. Rebate, under Section 88E, is available in respect of Securities Transaction Tax from Assessment year 2005-06.

Dividend, received from investment in shares, is not taxable in the hands of the recipient. The company, distributing the dividend, is required to deduct tax from the amount of dividend declared. Such tax deducted will not be entitled to TDS for the recipient.

Investments in shares do not have any Wealth Tax implications.

Investments in shares do not have any Gift Tax implications. Investment in shares in the name of some other person other than the investors has Income-tax (gift) implications with effect from Financial Year 2004. These shares will now be treated as income.

NRIs are subject to lower rates of taxation. They have an option, either to choose the lower rate of tax on the capital gains or to choose the normal rate of tax if they want the cost to be indexed.

There are no tax implications for making investments in real estate.

In case of immovable property being sold within a period of 36 months from the acquisition, the gain arising there from would be short-term capital gain and liability for taxation at 30%.

In case the immovable property has been held for more than 36 months, the gain would be long-term capital gain and the tax thereon would be at the rate of 20%

The assessee would be entitled to index the cost as per the cost inflation index. If the asset has been purchased prior to April 1, 1981, then the assessee would be entitled to substantiate the cost by the market value as on April 1, 1981 and index the cost thereafter. Long-term capital gain is taxable at a flat rate of 20 percent (plus surcharge plus education cess) for the Assessment Year 2005-06.

Long-term capital gain liability can be set off by investing in capital gains bonds as per the provisions of Section 54EC. However, care should be taken to see that the investments are made within a period of 6 months from the date of transfer or before the due date of filing the return, whichever is earlier.

A capital loss (short-term/long-term) can be carried forward for a maximum period of 8 years from the assessment year in which the loss was first incurred.

A short-term capital loss can be set off against any capital gain (long-term and short-term); however a long-term capital loss can be set off only against a long-term capital gain.

Investors can minimise their long-term capital gain tax liability by either investing in capital gains bonds or by investing in residential house property under the provisions of Section 54, Section 54F and Section 54EC of the Income Tax Act, 1961.

Short-term capital gains can be adjusted against short-term capital losses.

Rental income has to be taxed under the head "Income from house property". Deductions are available under Section 23 and Section 24 of the Act. It may be noted that a deduction is available for repairs, whether incurred or not. Actual expenses are deductible, except for municipal rate.

NRIs/foreigners are permitted to own property in India in most of the categories. However, there are certain categories like agricultural land, land for housing project wherein NRIs/foreigners are specifically not entitled to own property.

The laws applicable to NRIs would be Income Tax Act, Wealth Tax Act, Gift Tax Act, Transfer of Property Act and FEMA among others and the implications would depend upon the facts of each case.

There are no gift tax implications on the transfer of real estate. However, after the implementation of the Finance Act 2004, any gift to a person who is not a relative, as defined by the Income Tax Act, would be taxable as income of the recipient on the market value of the gift. The relatives, as defined under the Income Tax Act, would not be liable to such income tax.

As per Section 2 (ea)(i) of the Wealth Tax Act, guest house, residential house and commercial building are treated as assets subject to certain exceptions. These assets are liable to Wealth Tax.

Urban land, under Section 2(ea)(v) is an asset liable to Wealth Tax subject to certain conditions. However one house or a part of house or a plot of land not exceeding 500 square meters in area is exempt from Wealth Tax under Section 5(vi).

Only agriculturists can buy agricultural property. NRIs/foreigners are specifically debarred from buying such property.

No, investing in gold doesn't entail any tax implications.

Ornaments made of silver, gold, platinum or any other precious metal and precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel are treated as capital assets. Hence, a long-term or short-term capital gains liability will arise at the time of sale.

Gold or jewellery when held for the period more than 36 months is treated as long-term capital asset. If they are held for period of less than 36 months, then they are treated as short-term capital assets.

While calculating capital gains, the assessee is entitled to claim as deduction the cost of acquisition from the sale value. In the case of long-term capital gains, the indexed cost of acquisition is allowed as deduction.

A capital loss (short-term/long-term) can be carried forward for a maximum period of 8 years from the assessment year in which the loss was first incurred.

A short-term capital loss can be set off against any capital gain (long-term and short-term); however a long-term capital loss can be set off only against a long-term capital gain.

Tax liability arising from long-term capital gains, on the sale of gold or other jewellery can be optimised by investing in a residential house under Section 54 or any other specified assets like capital gains bonds.

Short-term capital gains can be adjusted against short-term capital losses.

Gold doesn't fall under the purview of Gift Tax; hence there are no tax implications.

Yes, gold falls under the purview of the Wealth Tax Act. The tax is levied on jewellery, bullion, furniture, utensils or any other article made wholly or partly of gold, silver or platinum.

Under the SBI Gold Deposit Scheme, the following are eligible to make investments, individuals - either singly or two individuals on a 'first holder or survivor' basis, Hindu Undivided Family (HUF), trusts and companies.

The tax benefits of investment in the Gold Deposit Scheme are:

• No Income Tax implications on the interest income

• No Wealth Tax implications on the gold deposited

• No capital gains liability

Yes, individuals can claim tax benefits on eligible donations to charities. Deductions are available under Section 80G to any taxpayer i.e. individual - resident and non-resident, firm, HUF, company.

But, all donations are not eligible for deductions. Tax deductions can be claimed only on specific donations i.e. those made to prescribed funds and institutions.

The tax benefits on donations are available under Section 80G of the Income Tax Act and have been segregated as follows:

• Those eligible for 100% deduction on the donation amount,
  
  

• Those eligible for 50% deduction on the donation amount,
  
  

• Those eligible for 100% or 50% deduction on the donation amount, subject to maximum of the 10% of the gross total income.

No, there is no upper limit on the amount of donation. However in some cases there is a cap on the eligible amount i.e. a maximum of 10% of the gross total income.

The limit is to be applied to the adjusted gross total income. The 'adjusted gross total income' for this purpose is the gross total income (i.e. the sub total of income under various heads) reduced by the following:

• Amount deductible under Sections 80CCC to 80U (but not Section 80Gl)

• Exempt income

• Long-term capital gains

• Income referred to in Sections 115A, 115AB, 115AC, 115AD and 115D, relating to non-residents and foreign companies.

Yes, the donor is required to maintain a proper receipt as evidence of the payment of donation.

In order to claim the benefit for donations made, it is necessary to furnish, along with the return of income, the proof of payment made towards the donation to the eligible institution or fund. Tax benefits cannot be claimed without aforementioned documents.

Yes, NRIs are also entitled to claim tax benefits against donations, subject to the donations being made to eligible institutions and funds.