IMPORTANT MONETARY LIMITS

(1)
# SabKarLenge

Rebate u/s 87A

Regime Net Total Income Not exceeding Rebate shall be lower of
Optional Rs. 5,00,000 Rs. 12,500 or Tax
Default Tax Rs. 7,00,000 Rs. 25,000 or Tax

(2) Mode of payment shall be through ECS, UPI/NEFT/RTGS/Debit or Credit Card

or A/c Payee Cheque to a person in a day Where
Payment > Rs. 10,000 In case of Transporter > Rs. 35,000 in a day
In case of payment of retirement benefits to Employees/ Family upto Rs. 50,000

(3) Expense allowed in PY on accrual basis and later paid in cash/crossed/ is

disallowed Where
Expenditure > Rs. 10,000 in a day

(4) Maintaining Books of Accounts

Particulars Limit
Profession
• Notified GR> Rs. 1,50,000 all 3 PFYs OR likely to exceed in CY
• Other As would enable to Compute total Income
Business In any 1 of 4 Preceding PYs
Ind / HUF T/O > Rs. 25 Lakhs OR PGBP Income > Rs. 2.5 Lakhs
Others T/O > Rs. 10 Lakhs OR PGBP Income > Rs. 1.2 Lakhs

(5) Section 112A Tax Rates applicable on sum exceeding

Upto 22/07/2024 - Rs. 1,25,000
From 23/07/2024 - Rs. 1,25,000

(6) Taxability of Insurance Policies

ULIP - Premium Exceeds Rs. 2,50,000 on or after 01/02/21
+2 +2

LIP - Premium Exceeds Rs. 5,00,000 on or after 01/04/23

Sec 80C LIP Deduction upto Rs. 1,50,000 (if optional regime opted)

11.1 CA Yash Khandelwal DT SNmoaterst

(7) Taxability of Gift
Particulars Condition Limit Taxable Amt
Money W/o Consideration > Rs. 50K Whole
Property
Movable W/o Consideration FMV > Rs. 50K Whole
Inadequate Considn Diff > RS. 50K Diff = FMV - Considn

Immovable W/o Consideration SDV > Rs. 50K Whole

Inadequate Considn Diff > Rs. 50K Diff is Taxable
check per & SDV > 110%
property of Consideration

(8) Taxation of Firm / LLP

Book Profits Quantum of Deduction
On the first Rs. 6,00,000 of Book Profits Rs. 3,00,000 or 90% of Book
or in case of loss Profit whichever is higher
On the Balance of Book Profits 60% of Book Profit

(9) Rule 12AB: Following Persons shall also be required to file their ROI u/s 139(1)
CASE Prescribed Transactions Prescribed Monetary Limit
A person carrying on His Total Sales, T/o, G/R, as > ₹60 lakhs during the
• Business the case, may be in business relevant PY
• Profession His total G/R in profession > ₹10 lakhs during the
relevant PY
Resident Indv aged ≥ The aggregate of TDS and ≥ ₹50,000 during the
60 years at any time TCS in his case relevant PY
during the relevant PY

Any other person The aggregate of TDS and ≥ ₹25,000 during the
TCS in his case relevant PY

A person having The deposit in one or more ≥ ₹50 Lakhs during the
Savings Bank Account savings bank accounts of relevant PY
the person, in aggregate

11.2
(10) Quoting of PAN is mandatory for transactions prescribed under Rule 114B:
As per section 139(5) quoting of PAN is mandatory in the following
documents/prescribed transactions:
(a) in all returns to, or correspondence with, any income-tax authority;
(b) in all challans for the payment of any sum due under the Act;
(c) in all documents relating to transactions entered into by him, as may be
prescribed by the CBDT.
In this connection, CBDT has prescribed the following transactions vide Rule 114B:

Nature of transaction Value of transaction

1) Sale or purchase of a motor vehicle All Such Transactions
(Other than 2 Wheeler)
2) Opening an Account [other than a time- deposit All Such Transactions
and a Basic Savings Bank A/c] with a banking
company or a co-operative bank
3) Making an application to any banking company All Such Transactions
or a co-operative bank,any other company or
institution, for issue of a credit or debit card.
4) Opening of a demat account All Such Transactions

5) Payment to a hotel or restaurant against a Payment in cash > ₹ 50,000

bill or bills at any one time.
6) Payment in connection with travel to any Payment in cash > ₹ 50,000
foreign country or payment for purchase of any
foreign currency at any one time.
7) Payment to a Mutual Fund for purchase of its Amount > ₹ 50,000
units
8) Payment to a Co. or an inst. for acquiring Amount > ₹ 50,000
debentures or bonds issued by it.
9) Payment to the RBI for acquiring bonds issued Amount > ₹ 50,000
by it.
10) Deposit with Cash deposits> ₹ 50,000
• a banking company or a co- operative bank;or during any one day
• post office

11.3
 11) Purchase of bank drafts or pay orders or Payment in cash > ₹ 50,000
banker’s cheques from a banking company or a
co-operative bank
12) A time deposit with, - Amount > ₹ 50,000 or
(i) a banking company or a co- operative bank aggregating to > ₹ 5 lakh
(ii) a Post Office; during a F.Y..
(iii) a Nidhi Co.; or
(iv) a NBFC
13) Payment for one or more pre-paid payment Payment in cash or by bank
instruments, to a banking company or a co- draft or pay order/banker’s
operative bank or to any other Co. or Inst. cheque aggregating to >
₹ 50,000 in a F.Y.
14) Payment as life insurance premium to an Amount aggregating to more
insurer than ₹ 50,000 in a F.Y.
15) A contract for sale or purchase of securities Amount > ₹ 1 lakh per
transaction
16) Sale or purchase, by any person, of shares of a Amount > ₹ 1 lakh per
Unlisted company transaction
17) Sale or purchase of any immovable property. Considn or SDV > ₹ 10 lakhs

18) Sale or purchase, by any person, of goods Amount > ₹ 2 lakh per
or services of any nature other than those transaction
specified at Sl. No. 1 to 17 of this Table, if any.
Quoting of PAN/ Aadhaar is mandatory when Cash Deposits / Withdrawals
- Rs. 20 Lakhs or more in a FY

(11) Fees for application to the BAR

Particulars Limit Fees
PSU Any Transaction Rs. 10,000
Other Assessee
• Transaction Value Upto Rs. 100 Cr Rs. 2,00,000
> Rs. 100 Cr up to Rs. 300 Cr Rs. 5,00,000
> Rs. 300 Cr Rs. 10,00,000

11.4
(12) Powers of acceptance/rejection of applications/claims for Exemption/ refund
or relief after the time limit for filing ROI shall be based on following Limits

Quantum of claim for 1 A.Y. Income-tax authority with whom

powers of acceptance/rejection is vested
Claim is upto 1 Cr Principal CIT or CIT
Claim > ₹ 1 Cr upto ₹ 3 cr CCIT
Claim > ₹ 3 cr Principal CCIT

(13) ROI is mandatorily required in certain cases, the cases with specific monetary
conditions to be remembered are mentioned below:
Conditions Monetary Limit
• Deposited in one or more Current A/c(s) maintained > 1 Cr
with a Banking Co/ Co-op Bank
• Expense for himself / other person for travel to a > 2 Lakh
foreign Country
• Incurred expense towards electricity bill > 1 Lakh

(14) MSME definition

Particulars Investment in Pl&M Turnover
or Equipment
(1) Micro Enterprises 1 Cr 5 Cr
(x10) (x10)

(2) Small Enterprises 10 Cr 50 Cr

(15) Tax Audit limit

Business - T/O > Rs. 1 Cr in PY
Profession - Gross Receipts > Rs. 50 Lakhs in PY

(16) Family pension - LOWER OF 1/3rd of such income or

Default Regime - 25,000
Optional Regime - 15,000

11.5
[L] - W.E. IS LOWER

(17) Conditions for exemption of political parties

• Maintain Record of Name & Address of Donor - Donation > 20,000
• Donation in A/c Payee Cheque, DD, any mode of ECS - Donation > 2,000

(18) For Managing its Affairs, an Electoral Trust can spend upto 5% of its
Total Contribution. However,
Aggregate Limit for Yr 1 - 5 Lakh
Subsequent Yrs - 3 Lakh

(19) Limits in Deductions under Chapter VI-A

Section Amount
80C 1,50,000
80CCC 1,50,000
80CCE [Limit for 80C + 80CCC+ 80CCD(1)] 1,50,000
80CCD(1B) 50,000
80QQB & 80RRB Royalty / 3,00,000 [L]
80TTA Interest/ 10,000 [L]
80TTB (SENIOR CITIZEN) Interest/ 50,000 [L]
80D
• Normal Case Total Payment / 25,000 [L]
• Senior Citizen Total Payment / 50,000 [L]
• Medical Expense if
No Insurance 50,000
• Preventive check up 5,000 (any mode)
80EEA & 80EEB 1,50,000
80JJAA (Employees Pay shall be upto) 25,000
80DD & 80U
• Normal Limit. 75,000
• Severe Disability (≥80%). 1,25,000
80DDB
• Resident Senior Citizen 1,00,000
• Others 40,000

11.6
(20) CBDT has fixed a monetary limit → For Appeal by Department.

→ Dept can only file appeal if Tax Effect is more than:

For Appeal to: w.e.f 17.09.2024 these limits have been revised

ITAT > 50 lakh ITAT > 60 lakh

HC > 1 Crore HC > 2 Crore
SC > 2 Crore SC > 5 Crore

(21) Not Liable to pay Interest u/s 234B and 234C - Advance Tax upto Rs. 10,000

(22) Not liable to maintain TP Records and Documents - Transactions upto Rs. 1 Cr

(23) Excess Interest u/s 94B shall apply where Interest is more than Rs. 1 Cr

(24) CbC Group Reporting if total group revenue for last A/c Yr ≥ 6,400 Cr

(25) Equalisation Levy u/s 165 Not Applicable when aggregate value recd by NR is
upto Rs. 1,00,000

11.7