Various provisions of the Income-tax Act contain reference to threshold limits. These threshold limits may include maximum exemption limit, limit of exemptions or deductions from income, allowances received as a part of salary which is exempt from tax, fees for filing an appeal, and so forth. This document contains brief introduction to all relevant provisions and their threshold limits.
Maximum amount of income which is not chargeable to Income-tax in the hands of a resident super senior citizen
*While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer
1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.
A new Section 9A is inserted by the Finance Act, 2015. It provides that in the case of an eligible investment fund, the fund management activity carried out through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund (subject to certain conditions).
It further provides that an eligible investment fund shall not be said to be resident in India for the purpose of section 6 merely because the eligible fund manager, undertaking fund management activities on its behalf, is situated in India.
The offshore funds shall be required to fulfil the following conditions during the relevant year for being an eligible investment fund:
b) fund is a resident of a country with which double taxation avoidance agreement has been entered into;
c) aggregate participation or investment in the fund, directly or indirectly, by persons resident in India does not exceed 5% of the corpus of the fund;
d) fund and its activities are subject to applicable investor protection regulations in the country of its residence;
f) any member of the fund along with connected persons shall not have any participation interest, directly or indirectly, in the fund exceeding 10%;
g) aggregate participation interest, directly or indirectly, of ten or less members along with their connected persons in the fund, shall be less than fifty percent;
j) the monthly average of the corpus of the fund shall not be less than 100 crores rupees and if the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than 100 crores rupees at the end of such previous year;
k) fund shall not carry on or control and manage, directly or indirectly, any business in India or from India;
l) fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities undertaken by the eligible fund manager on its behalf;
m) remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken on its behalf is not less than the arm's length price of such activity.
The following conditions shall be required to be satisfied by the person being the fund manager for being an eligible fund manager:
b) person is registered as a fund manager or investment advisor in accordance with the specified regulations;
d) person along with his connected persons shall not be entitled, directly or indirectly, to more than 25% of the profits accruing or arising to the eligible investment fund from the transactions carried out by the fund through such fund manager.
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