Basic Concepts
1. Income-tax law in India
I. Income Tax Act, 1961
II. Finance Act
III. Income Tax Rules, 1962
IV. Circular and Notification from CBDT
V. S.C. & H.C. Decisions
2. Rates of Tax
Surcharge
3. Important Definitions
Some of the important terms defined under Section 2 are given below
(1) Assessee [Section 2(7)]
(2) Assessment [Section 2(9)]
(3) Person [Section 2(31)]
(4) Company [Section 2(17)]
Classes of Companies
(5) Companies in which public are substantially interested
[Section 2(18)]
(6) Person having substantial interest in the company [Section 2(32)].
(7) Income [Section 2(24)]
(8) Agricultural Income [Section 2(1A)]
Amendment in the meaning of land in definition of agricultural
income [Section 2(1A)] [w.e.f. A.Y. 2014-15]
(9) Casual Income
(10) Previous year [Section 3]
Previous year for undisclosed sources of income
I. Cash Credits [Section 68]
II. Unexplained Investments [Section 69]
III. Unexplained money etc. [Section 69A]
IV. Amount of investments etc., not fully disclosed in the books of account [Section 69B]
V. Unexplained expenditure [Section 69C]
VI. Amount borrowed or repaid on Hundi [Section 69D]
....... Certain cases when income of a previous year will be assessed in the previous year itself
(11) Gross Total Income (GTI)
(12) Total Income [Section 2(45)]
(13) Infrastructure Capital Company [Section 2(26A)]
(14) Infrastructure Capital Fund [Section 2(26B)]
(15) Manufacture [Section 2(29BA)]
BASIC QUESTIONS FOR REVISION
Chapter 2
Residential Status of Person
1. Residential Status [Section 6]
A. Residential status of Individuals
B. Residential status of HUF
C. Residential status of firms and association of persons
D. Residential status of companies
E. Residential status of local authorities and artificial juridical persons
Note 17
(A) Residential status of Individuals
(B) Residential status of HUF
HUF considered as Resident
HUF considered as Non-Resident
Meaning of "Control & Management"
(C) Residential status of Company
2. Scope of Total Income
Incidence of Tax [Section 5]
3. Meaning of "Income received or deemed to be received"
4. Meaning of income 'accruing' and 'arising'
Income deemed to accrue or arise in India [Section 9]
5. Special Taxation Regime for off shore funds [Section 9A]
[W.e.f. A.Y. 2017-18]
Income Deemed to accrue or arise in India [Section 9]
BASIC QUESTIONS FOR REVISION
Chapter 3
Exempted Income
1. Incomes not included in Total Income [Section 10]
Restrictions on Allowability of Expenditure [Section 14A]
Difference between Section 10 and Chapter VI-A deductions
(1) Agricultural income [Section 10(1)]
(2) Amounts received by a member from the income of the HUF [Section 10(2)]
(3) Share income of a partner [Section 10(2A)]
(4) Exemption to non-residents and person resident outside India [Section 10(4)]
(5) Interest on savings certificates [Section 10(4B)]
(6) Leave travel concession [Section 10(5)]
Leave Travel Concession [Section 10(5)]
(7) Exemption in the case of individuals, who are not citizens of India [Section 10(6)]
(8) Tax on royalty or fees for technical services derived by
foreign companies [Section 10(6A)]
(9) Tax paid on behalf of non-resident [Section 10(6B)]
(10) Tax paid on behalf of foreign State or foreign enterprise on
amount paid as consideration of acquiring aircraft, etc. on lease [Section 10(6BB)]
(11) Income from projects connected with the security of India [Section 10(6C)]
(12) Allowances payable outside India [Section 10(7)]
(13) Co-operative technical assistance programmes [Section 10(8) and (9)]
(14) Consultant remuneration [Section 10(8A) and (8B)]
(15) Gratuity [Section 10(10)]
Gratuity [Section 10 (10)]
Tax Treatment of "Gratuity"
(16) Payment in commutation of pension [Section 10(10A)]
Pension under Section 10(10A)
(17) Exemption of amount received by way of encashment of unutilized earned leave on retirement
[Section 10(10AA)]
Leave Salary Or, Earned Leave Salary or, Leave Encashment — Section 10(10AA)
(18) Retrenchment compensation [Section 10(10B)]
Retirement Compensation [Section 10(10B)]
Lease of the following will be exempted
For considering of Point No. (a)
(19) Payments to Bhopal Gas Victirr Section 10(10BB)]
(20) Exemption of compensation ^don account of disaster [Section 10(10BC)]
(21) Voluntary Retirement Receipts [Section 10(10C)]
Voluntary Retirement Scheme [Section 10 (10C)]
Quantum Of Exemption
(22) Income-tax paid by employer [Section 10(10CC)]
(23) Receipts from LIC [Section 10(10D)]
(24) Payment from provident funds [Section 10(11) and (12)]
(25) Payment from superannuation funds [Section 10(13)]
(26) House rent allowance (HRA) [Section 10(13A)]
Metro Cities
Other Cities
House Rent Allowance (HRA) [Section 10(13A)]
(27) Special allowances to meet expenses relating to duties or personal expenses [Section 10(14)]
(28) Interest income arising to certain persons [Section 10(15)]
(29) Payments for acquisition of aircraft [Section 10(15A)]
(30) Educational scholarships [Section 10(16)]
(31) Payments to MPs & ML As [Section 10(17)]
(32) Awards for literary, scientific and artistic works and other
awards by the Government [Section 10(17A)]
(33) Pension received by recipient of gallantry awards [Section 10(18)]
(34) Family pension received by widow/children/nominated heirs of members of armed forces [Section 10(19)]
(35) Annual value of palaces of former rulers [Section 10(19A)]
(36) Income of local authorities [Section 10(20)]
(37) Income of research associations approved under Section 35(l)(ii) [Section 10(21)]
(38) Income of news agency [Section 10(22B)]
(39) Income of professional associations [Section 10(23A)]
(40) Income of institutions established by armed forces [Section 10(23 A A)]
(41) Income of Funds established for welfare of employees of which such employees are members
[Section 10(23AAA)]
(42) Income of Fund set up by Life Insurance Corporation under pension scheme
[Section 10(23AAB)]
(43) Income of institution established for development of Khadi and Village Industries
[Section 10(23B)]
(44) Income of authorities set up under State or Provincial Act for promotion of Khadi and Village
Industries [Section 10(23BB)]
(45) Income of authorities set up to administer religious or charitable trusts [Section 10(23BBA)]
(46) Income derived by the SAARC Fund for Regional Projects [Section 10(23BBC)]
(47) Income of the IRDA [Section 10(23BBE)]
(48) Exemption of income of Central Electricity Regulatory
Commission (CERC) [Section 10(23BBG)]
(49) Income of certain funds or institutions [Section 10(23C)]
(50) Exemption to income of a securitisation trust [Section 10(23DA)]
[Inserted w.e.f. A.Y. 2014-15]
(51) Income of Investor Protection Funds [Section 10(23EA)]
(52) Exemption of specified income of Investor Protection Fund set up by
commodity exchanges [Section 10(23EC)]
(53) Income of Venture Capital Company / Fund [Section 10(23FB)]
(54) Exemption to income of Investor Protection Fund of depositories
[Section 10(23ED)] [w.e.f. A.Y. 2014-15]
(55) Pass through Status to certain Alternative Investment Funds
[Section 10(23FB)] [w.e.f. A.Y. 2013-14]
(56) Income of trade unions [Section 10(24)]
(57) Income of provident funds, superannuation funds, gratuity funds [Section 10(25)]
(58) Income-tax exemption to Employees' State Insurance Fund [Section 10(25A)]
(59) Income of member of a Scheduled Tribe [Section 10(26)]
(60) Exemption of income of a Sikkimese Individual [Section 10(26AAA)]
(61) Exemption of income of an Agricultural Produce Market Committee or Board
[Section 10(26AAB)]
(62) Income of a corporation etc. for the promotion of interests of members of Scheduled Castes or
Tribes or both [Section 10(26B)]
(63) Exemption of income of corporations established to protect interests of minority community
[Section 10(26BB)]
(64) Exemption of income of corporation established by a Central, State or Provincial Act for
welfare of ex-servicemen [Section 10(26BBB)]
(65) Co-operatives for Scheduled Castes [Section 10(27)]
(66) Incomes of certain bodies like Coffee Board, etc. [Section 10(29A)]
(67) Tea board subsidy [Section 10(30)]
(68) Other subsidies [Section 10(31)]
(69) Exemption in respect of clubbed income of minor [Section 10(32)]
(70) Exemption of capital gain on transfer of a unit of Unit Scheme, 1964 (US 64) [Section 10(33)]
(71) Exclusion of dividends referred to in Section 115-0 from Total Income [Section 10(34)]
(72) Exemption of income from units from the Administrator of specified undertaking / specified company / mutual fund specified in clause (23D) [Section 10(35)]
(73) Exemption of long term capital gains on transfer of listed Equity Shares [Section 10(36)]
(74) Exemption of capital gains on compulsory acquisition of agricultural land situated within specified urban limits [Section 10(37)]
(75) Exemption of long-term capital gains on sale of equity shares / units of an equity oriented fund
[Section 10(38)]
(76) Exemption of specified income arising from any international sporting event in India
[Section 10(39)]
(77) Exemption of certain grants etc. received by a subsidiary from its Indian holding
company engaged in the business of generation or transmission or distribution of
power [Section 10(40)]
(78) Exemption of any income from transfer of an asset of an undertaking engaged in the
business of generation or transmission or distribution of power [Section 10(41)]
(79) Exemption of specified income of certain bodies or authorities [Section 10(42)]
(80) Exemption of income received in a transaction of reverse mortgage [Section 10(43)]
(81) Exemption of income received by any person on behalf of NPS Trust
[Section 10(44)]
(82) Exemption of specified allowances & perquisites paid to Chairman or a retired Chairman or other member or retired member of the UPSC [Section 10(45)]
(83) Exemption of specified income of notified entities not engaged in commercial activity
[Section 10(46)]
(84) Exemption of income of notified infrastructure debt funds and concessional tax rate
on interest received by non-residents from such fund [Section 10(47)]
(85) Exemption in respect of income received by certain foreign companies
[Section 10(48) [w.e.f. A.Y. 2014-15]
(86) Exemption of income of Foreign company from storage and sale of crude oil stored as part of strategic reserves [Section 10(48A)] [W.r.e.f. A.Y. 2016-17]
(87) Exemption to National Financial Holdings Company Limited on 10(49)]
[w.e.f. A.Y. 2013-14]
2. Tax Holiday for Newly Established Units in SEZ [Section 10AA]
(1) Assessee's who are eligible for exemption
(2) Essential conditions to claim exemption
(3) Period for which deduction is available
(4) Conditions to be satisfied for claiming deduction for further
5 years (after 10 years) [Section 10AA(2)]
(5) Consequences of Mis-utilisation / Non-utilization of reserve
[Section 10AA(3)]
(6) Computation of profit and gains from exports of such undertakings
(7) Conversion of EPZ / FTZ into SEZ
(8) Restriction on other tax benefits
(9) Deduction allowable in case of amalgamation and demerger
3. Charitable or Religious Trusts and Institutions [Section 11 to13]
(1) General discussion on trusts
(2) Tax Exemption [Section 11]
BASIC QUESTIONS FOR REVISION
Chapter 4
Income from Salary
1. Definition of Salary
2. Basis of charge
3. Profits in lieu of salary [Section 17(3)]
4. Advance Salary
5. Loan or Advance against salary
6. Arrears of salary
7. Gratuity [Section 10(10)]
8. Leave Salary or, Earned Leave Salary or, Leave Encashment
[Section 10(10AA)]
9. Retrenchment Compensation [Section 10(10B)]
10. Compensation received on Voluntary Retirement [Section 10(10C)]
11. Provident Fund
12. Salary from United Nations Organization
13. Allowances
14. Perquisites
(1) Perquisites taxable in the case of all employees
(2) Perquisites exempt from tax in all cases
(3) Perquisites taxable only in the hands of specified employees [Section 17(2)(iii)]
Valuation of Perquisites
15. Deductions from Salary
(1) Entertainment allowance
(2) Professional tax on employment
BASIC QUESTIONS FOR REVISION
Chapter 5
Income from House Property
1. Chargeability [Section 22]
Conditions for Chargeability
Exceptions
2. Composite Rent
Meaning of composite rent
Tax treatment of composite rent
Income from House Property Situated Outside India
3. Determination of Annual Value [Section 23]
I. Determination of Annual Value for different types of House Properties..
A. Where the property is let out throughout the previous year
[Section 23(l)(a)/(b)]
B. Where let out property is vacant for part of the year [Section 23(l)(c)]
C. In case of self-occupied property or unoccupied property
[Section 23(2)]
Gross Annual Value (GAV)
D. Where a house property is let-out for part of the year and
self-occupied for part of the year [Section 23(3)]
E In case of deemed to be let out property [Section 23(4)]
F. In case of a house property, a portion let out and a portion self-occupied
II. Treatment of unrealized Rent [Explanation to Section 23(1)]
III. Property Taxes (Municipal taxes)
IV. Deductions from Annual Value [Section 24]
Interest on Borrowed capital [Section 24(b)]
V. Deduction in respect of one Self-occupied Property where
Annual Value is Nil
Self occupied property [Section 23(2)]
VI. Inadmissible Deductions [Section 25]
VII. Taxability of recovery of unrealized rent & arrears of rent received
VUI. Treatment of income from co-owned property [Section 26]
IX. Treatment of income from property owned by a partnership firm
X. Deemed Ownership [Section 27]
BASIC QUESTIONS FOR REVISION
Chapter 6
Profit and Gain from Business or Profession
1. Meaning of 'Business', 'Profession' and 'Profits'
2. Income Chargeable under this Head [Section 28]
3. Speculation Business
4. Computation of income from business [Section 29]
5. Admissible Deductions
5.1 Rent, rates, repairs and insurance for buildings [Section 30]
5.2 Repairs and insurance of machinery, plant and furniture
[Section 31]
5.3 Depreciation [Section 32]
Asset used for less than 180 days
5.4 Hire purchase
5.5 Computation of Depreciation Allowance
5.6 Actual Cost [Section 43(1)]
5.7 Written down value [Section 43(6)]
5.8 Rates of depreciation
5.9 Increased rate of depreciation for certain assets—Rule 5(2)
5.10 Carry forward and set-off of depreciation [Section 32(2)]
5.11 Building, machinery, plant and furniture not exclusively
used for business purpose [Section 38(2)]
5.12 Balancing Charge
6. Tea Development A/C, Coffee Development A/C, and Rubber
Development A/C [Section 33AB]
7. Site Restoration Fund [Section 33ABA]
8. Reserves for Shipping Business [Section 33AC]
9. Expenditure on Scientific Research [Section 35]
A. Revenue Expenditure
B. Capital Expenditure
C Carry forward of deficiency
D. No depreciation
E Approval by Central Government
10. Sum paid to National Laboratory, etc. [Section 35(2 A A)]
11. Company engaged in Business of Drugs, Electronic Equipments, etc.
[Section 35(2AB)]
12. Amortisation of spectrum fee for purchase of spectrum
[Section 35ABA [W.e.f. A.Y. 2017-18]
13. Expenditure for obtaining Licence to operate Telecommunication
services [Section 35ABB]
14. Promotion of social and economic welfare [Section 35AC]
15. "Investment-linked tax incentives" for specified businesses
[Section 35 AD]
16. Contributions for Rural Development [Section 35CCA]
17. Amortization of Preliminary Expenses [Section 35D]
18. Amortization of expenses for prospecting and development of
certain minerals [Section 35E]
19. Other Deductions [Section 36]
20. Inadmissible Deductions
20.1 Inadmissible Deductions [Section 40]
20.2 Expenses or payments not deductible in certain circumstances [Section 40A]
20.3 Changes in the rate of exchange of currency [Section 43A]
20.4 Certain deductions to be only on actual payment [Section 43B] .
20.5 Special Provision for Computation of Cost of Acquisition of
Certain Assets [Section 43C]
20.6 Special provision for full value of consideration for transfer of assets other than capital assets in certain cases
[Section 43CA] [w.e.f. A.Y. 2014-15]
20.7 Special Provision in case of income of Public Financial
Institutions [Section 43D]
20.8 Insurance Business [Section 44]
20.9 Special provisions in the case of certain associations
[Section 44A]
20.10 Compulsory Maintenance of Accounts [Section 44 A A]
20.11 Audit of accounts of certain persons carrying on business
or profession [Section 44AB]
21. Special provisions for computing profits and gains of business on
presumptive basis [Section 44AD]
22. Special provisions for computing profits and gains of business of
plying, hiring or leasing goods carriages [Section 44AE]
23. Special provision for computing the profits and gains of shipping
business in case of non-residents [Section 44B]
24. Provisions for computation of taxable income from activities
connected with exploration of mineral oils [Section 44BB]
25. Special provision for computing profits and gains of the business
of operation of aircraft in the case of non-residents [Section 44BBA]
26. Special provision for computing profits and gains of foreign
companies engaged in the business of civil construction etc. in certain turnkey power projects [Section 44BBB]
27. Special provisions for computing income by way of royalties etc.
in case of non-residents [Section 44DA]
28. Method of computing deduction in the case of business
reorganization of co-operative banks [Section 44DB]
29. Computation of business income in cases where income is partly
agricultural and partly business in nature
BASIC QUESTIONS FOR REVISION
7
Income from Capital Gain
1. Charging Section of Capital Gain [Section 45]
2. Definition of "Capital Asset" [Section 2(14)]
3. Short-term and Long-term Capital Assets
4. Transfer: What it means [Section 2(47)]
Definition of "Transfer" [Section 2(47)]
5. Scope and year of chargeability [Section 45]
i. General Provision [Section 45(1)]
ii. Receipts from insurance parties [Section 45(1A)]
iii. Conversion or treatment of a capital asset as stock-in-trade
[Section 45(2)]
iv. Transfer of beneficial interest in securities [Section 45(2A)]
v. Introduction of capital asset as capital contribution
[Section 45(3)]
vi. Distribution of capital assets on a firm's dissolution
[Section 45(4)]
vii. Compensation on compulsory acquisition [Section 45(5)]
viii. Repurchase of mutual fund units referred to in Section 80CCB
[Section 45(6)]
6. Capital gains on distribution of assets by companies in liquidation
[Section 46]
7. Capital gains on Buyback, etc. of shares [Section 46A]
8. Transactions not regarded as transfer [Section 47]
9. Important Definitions
A. Amalgamation [Section 2(1 B)]
B. Demerger [Section 2(19AA)]
10. Withdrawal of exemption in certain cases
11. Mode of computation of capital gains
12. Ascertainment of Cost in Specified Circumstances [Section 49]
13. Cost of improvement [Section 55]
(1) Goodwill of a business, etc
(2) Any other capital asset
14. Cost of Acquisition [Section 55]
15. Computation of capital gains in case of depreciable asset [Section 50].
16. Capital gains in respect of slump sales [Section 50B]
17. Special Provision for Full Value of Consideration in Certain Cases
[Section 50C]
18. Advance money received [Section 51]
19. Exemption of capital gains
I. Capital Gains on sale of residential house [Section 54]
II. Capital Gains on transfer of agricultural land [Section 54B]
III. Capital Gains on transfer by way of compulsory acquisition of land and building
[Section 54D]
IV. Capital Gains not chargeable on investment in certain bonds [Section 54EC]
V. Capital gains in cases of investment in residential house [Section 54F]
IV. Capital gains for shifting of industrial undertaking from urban areas [Section 54G]
V. Exemption of capital gains on transfer of certain capital
assets in case of shifting of an industrial undertaking from an urban area to any SEZ
[Section 54GA]
VI. Capital Gains Account Scheme (CGAS)
IX. Extension of time for acquiring new asset or depositing or investing amount of Capital Gain
[Section 54H]
X. Tax incentives for start-ups [Section 54EE and 54GB] [W.e.f. A.Y. 2017-18]
20. Reference to Valuation Officer [Section 55A]
21. Short term capital gains tax in respect of equity shares/ units of an equity oriented fund
[Section 111 A]
22. Tax on long-term capital gains [Section 112]
23. Exemption of long term capital gains on sale of equity shares/
Units of an equity oriented fund [Section 10(38)]
24. Securities Lending and Borrowing Scheme
BASIC QUESTIONS FOR REVISION
Chapter 8
Income from Other Sources
1. Introduction
2. Incomes chargeable under this head [Section 56]
Deemed Dividend [Section 2(22)]
Winning from lotteries, crossword puzzles, horse races and card games [Section 56(2)]
Section 56 : Chargeability of Income from other sources
3. Rules for determination of fair market value of the property other than immovable property
A. Valuation of jewellery
B. Valuation of archaeological collections, drawings, paintings, sculptures or any work of art
C. Valuation of shares and securities
4. Transfer of shares without consideration or for inadequate consideration to attract the provisions of Section 56(2) in case
of recipient firms and companies also [Section 56(2)(vii-a)]
5. Interest received on compensation/enhanced compensation deemed to be income in the year of receipt and taxable under
the head "Income from Other Sources" [Section 56(2)(viii)]
6. Bond washing transactions and dividend stripping [Section 94]
7. Applicable rate of tax in respect of casual income [Section 115BB]
8. Deductions allowable [Section 57]
9. Deductions Not Allowable [Section 58]
10. Deemed income chargeable to tax [Section 59]
11. Method of accounting [Section 145]
BASIC QUESTIONS FOR REVISION
Chapter 9
Clubbing of Income
1. Clubbing of Income — An Introduction
2. Transfer of income without transfer of asset [Section 60]
3. Income arising from revocable transfer of assets [Section 61]
4. Exceptions where clubbing provisions are not attracted even in
case of revocable transfer [Section 62]
5. Clubbing of income arising to spouse [Section 64(1 )(ii)]
5.1 Income by way of remuneration from a concern in which the
individual has substantial interest
5.2 Income arising to the spouse from an asset transferred without
adequate consideration [Section 64(1 )(iv)]
6. Transfer of assets for the benefit of spouse [Section 64(l)(vii)]
7. Income arising to son's wife from the assets transferred without
adequate consideration by the father-in-law or mother-in-law [Section 64(l)(vi)]
8. Transfer of assets for the benefit of son's wife [Section 64(l)(viii)]
9. Clubbing of minor's income [Section 64(1 A)]
10. Cross Transfers
11. Conversion of self-acquired property into the property of a
Hindu Undivided Family [Section 64(2)]
12. Income includes loss
13. Distinction between Section 61 and Section 64
14. Liability of person in respect of income included in the income
of another person [Section 65]
Summary
BASIC QUESTIONS FOR REVISION
Chapter 10
Set off and Carry Forward of Losses
1. Aggregation of Income
2. Concept of set-off and carry forward of losses
3. Inter-source adjustment [Section 70]
4. Inter-head adjustment [Section 71]
5. Set-off and carry forward of loss from house property [Section 71B]
6. Carry forward and set-off of business losses [Section 72 & 80]
7. Carry forward and set-off of accumulated business losses and unabsorbed depreciation in certain cases of Amalgamation/Demerger, etc. [Section 72A]
7.1 Amalgamation
Conditions for availing benefit under this section
7.2 Demerger
7.3 Re-organization of business [Section 72A(6)]
7.4 Conversion of a company into LLP [Section 72A(6A)]
8. Set-off of losses of a banking company against the profit of a
I banking institution under a scheme of amalgamation [Section 72AA]..
9. Provisions relating to carry forward and set-off of accumulated
loss and unabsorbed depreciation in business reorganization of co-operative banks [Section 72AB]
10. Losses in Speculation Business [Section 73]
11. Carry forward & set-off of losses by specified businesses [Section 73A]
12. Losses under the head 'Capital Gains' [Section 74]
13. Losses from the activity of owning and maintaining race horses [Section 74A(3)]
14. Carry forward and set-off of losses in case of change in constitution of firm or succession
[Section 78]
15. Carry forward and set-off of losses in case of closely held companies [Section 79]
16. Order of set-off of losses
Summary 250
BASIC QUESTIONS FOR REVISION
Chapter 11
Deduction from Gross Total Income
1. General Provisions
2. Deduction in respect of payments
2.1 Deduction in respect of investment in specified assets
[Section 80C]
2.2 Deduction in respect of contribution to certain pension funds
[Section 80CCC]
2.3 Deduction in respect of contribution to pension scheme of
Central Government [Section 80CCD]
2.4 Limit on deductions under Sections 80C, 80CCC & 80CCD
[Section 80CCE]
2.5 Deduction for investment in long-term infrastructure bonds
[Section 80CCF]
2.6 Expanding the scope of deduction in respect of investment made under an equity saving scheme [Section 80CCG]
[w.e.f. 2014-15]
2.7 Deduction in respect of medical insurance premium [Section 80D]
2.8 Deduction in respect of maintenance including medical
treatment of a dependent disabled [Section 80DD]
2.9 Deduction in respect of medical treatment etc. [Section 80DDB]
2.10 Deduction in respect of interest loan taken for higher
education [Section 80E]
2.11 Deduction in respect of interest on loan sanctioned during
financial year 2013-14 for acquiring residential house property [Section 80EE] [w.e.f. A.Y. 2014-15]
2.12 Deduction in respect of donations to certain funds, charitable
institutions etc. [Section 80G] [w.e.f. A.Y. 2014-15]
2.13 Deduction in respect of rent paid [Section 80GG]
2.14 Deduction in respect of donations for scientific research and
rural development [Section 80GGA]
2.15 Deduction in respect of contributions given by companies to
political parties [Section 80GGB]
2.16 Deduction in respect of contributions given by any person to
political parties [Section 80GGC]
3. Deduction in respect of incomes
3.1 Deductions in respect of profits and gains from undertakings
or enterprises engaged in infrastructure development, etc. [Section 80-IA]
3.2 Deduction in respect of profits and gains by an undertaking
or enterprise engaged in development of SEZ [Section 80-IAB]
3.3 Deductions in respect of profits and gains from certain industrial undertakings other
than infrastructure development undertakings, etc. [Section 80-IB]
A. Applicability
B. Conditions to be fulfilled, amount of deduction and period of deduction
3.4 Deduction in respect of profits and gains from housing projects [Section 80- IBA]
[W.e.f. A.Y. 2017-18]
3.5 Special provisions in respect of certain undertakings or enterprises in certain special
category States [Section 80-IC]
3.6 Tax holiday in respect of profits and gains from the business of hotel or business of building,
owning and operating a convention centre in NCR [Section 80-ID]
3.7 Tax holiday in respect of profits and gains from eligible business of certain undertakings in
North-Eastern States [Section 80-IE]
3.8 Deduction in respect of profits and gains from business of collecting and processing of
bio-degradable waste [Section 80JJA]
3.9 Deduction in respect of employment of new workmen [Section 80JJAA]
3.10 Deduction in respect of certain income of Off-shore Banking Units and International
Financial Services Centre [Section 80LA]
3.11 Deduction in respect of income of co-operative societies [Section 80P]
3.12 Deduction in respect of royalty income, etc., of authors of certain books other than text books
[Section 80QQB]
3.13 Deduction in respect of royalty on patents [Section 80RRB]
1. Other Deductions
2. Deduction in the case of a person with disability [Section 80U]
BASIC QUESTIONS FOR REVISION
Assessment Procedure
1. Return of Income
2. Compulsory filing of return of income [Section 139(1)]
3. Interest for default in furnishing return of income [Section 234A]
4. Option to furnish Return of Income to Employer [Section 139(1 A)]
5. Income-tax Return through computer readable media
[Section 139(1 B)]
6. Specified class or classes of persons to be exempted from filing
Return of Income [Section 139(1C)]
7. Return of Loss [Section 139(3)]
8. Belated Return [Section 139(4)]
9. Return of Income of Charitable Trusts and Institutions
[Section 139(4A)]
10. Return of Income of Political Parties [Section 139(4B)]
11. Mandatory filing of returns by Scientific Research Associations,
News Agency, Trade Unions, etc. [Section 139(4C)]
12. Mandatory filing of returns by Universities, Colleges etc.
[Section 139(4D)]
13. Revised Return [Section 139(5)]
14. Particulars required to be furnished with the return [Section 139(6)]
15. Particulars to be furnished with return of income in the case of an
assessee engaged in business or profession [Section 139(6A)]
16. Defective Return [Section 139(9)] [w.e.f. 01.06.2013]
17. Permanent Account Number (PAN) [Section 139A]
18. Scheme for submission of returns through Tax Return Preparers
[Section 139B]
19. Power of CBDT to dispense with furnishing documents etc. with the return and filing of return in electronic form
[Sections 139C & 139D]
20. Authorized Signatories to the Return of Income [Section 140]
21. Self-Assessment [Section 140A]
22. Inquiry before Assessment [Section 142]
23. Audit under Section 142
24. Power of AO to make a reference to the Valuation Officer
[Section 142A]
25. Assessment [Section 143]
25.1 Summary assessment [Section 143(1)/(1A)/(1B)/(1C)]
25.2 Regular assessment/Scrutiny assessment
25.3 Best judgment assessment [Section 144]
26. Power of Joint Commissioner to issue directions in certain cases
[Section 144A]
27. Provision for constitution of Alternate Dispute Resolution
Mechanism [Section 144C]
28. Valuation of Inventory [Section 145A]
29. Income escaping assessment [Section 147]
29.1 Applicability
29.2 Issue of notice where income has escaped assessment
[Section 148]
29.3 Time limit for notice [Sections 149 & 150]
30. Sanction for issue of notice [Section 151]
31. Other Provisions [Section 152]
32. Time limit for assessment, reassessment and recomputation
[Section 153] [W.e.f. 1-6-2016]
33. Limitation period for completion of assessments/re-assessments..
34. Assessment procedure in case of search or requisition
[Section 153A/153B/153C]
35. Rectification of Mistakes [Section 154]
36. Other Amendments [Section 155]
37. Notice of Demand [Section 156]
38. Intimation of Loss [Section 157]
BASIC QUESTIONS FOR REVISION
Chapter 13
TDS & Advance Tax
1. Deduction and Collection of Tax at Source and Advance Payment
[Section 190]
2. Direct Payment [Section 191]
3. Deduction of Tax at Source
3.1 Salary [Section 192]
3.2 Interest on securities [Section 193]
3.3 Dividends [Section 194]
3.4 Interest other than interest on securities [Section 194A]
3.5 Winnings from lotteries, crossword puzzles and horse races [Section 194B and 194BB]
3.6 Payments to contractors and sub-contractors [Section 194C]
3.7 Insurance Commission [Section 194D]
3.8 Payments to non-resident sportsmen or sports association [Section 194E]
3.9 Payments in respect of deposits under NSC etc. [Section 194EE]..
3.10 Repurchase of units by Mutual Fund or Unit Trust of India [Section 194F]
3.11 Commission etc. on the sale of lottery tickets [Section 194G]
3.12 Commission or brokerage [Section 194H]
3.13 Rent [Section 194-1]
3.14 Fees for professional or technical services [Section 194J]
3.15 Payment of compensation on acquisition of certain immovable property [Section 194LA]
3.16 Income by way of interest from Infrastructure Debt Fund [Section 194LB]
3.17 Other Sums (payable to non-residents) [Section 195]
3.18 TDS on income from Deep Discount Bonds
3.19 Income payable net of tax [Section 195A]
3.20 Interest or dividend or other sums payable to Government,
Reserve Bank or certain corporations [Section 196]
4. Certificate for deduction of tax at a lower rate [Section 197]
5. No Deduction in Certain Cases [Section 197A]
6. Miscellaneous Provisions
6.1 Tax deducted is income received [Section 198]
6.2 Credit for tax deducted at source [Section 199]
6.3 Duty of person deducting tax [Section 200]
6.4 Correction of arithmetic mistakes and adjustment of
incorrect claim during computerized processing of TDS statements [Section 200A]
6.5 Consequences of failure to deduct or pay [Section 201]
6.6 Deduction only one mode of recovery [Section 202]
6.7 Certificate for tax deducted [Section 203]
6.8 Common number for TDS and TCS [Section 203A]
6.9 Furnishing of statement of tax deducted [Section 203AA]
6.10 Person responsible for paying taxes deducted at source
[Section 204]
6.11 Bar against direct demand on assessee [Section 205]
6.12 Furnishing of statements in respect of payment of interest to
residents without deduction of tax [Section 206A]
6.13 Mandatory requirement of furnishing PAN in all TDS
statements, bills, vouchers and correspondence between deductor and deductee [Section 206AA]
7. Tax collection at source [Section 206C]
Rectification of defective TCS return [Section 206C(5D)]
Definitions
8. Advance Payment of Tax [Sections 207 to 219]
Companies—Four installments
9. Scheme of Mandatory Interest
9.1 Interest for defaults in furnishing return of income
[Section 234A]
9.2 Interest for defaults in payment of advance tax [Section 234B]
9.3 Interest for deferment of advance tax [Section 234C]
9.4 Interest on excess refund granted at the time of summary
assessment [Section 234D]
10. Collection and Recovery of Tax—Other Methods
10.1 Payment of tax and defaults by the assessee [Section 220]
10.2 Penalty payable [Section 221]
10.3 Certificate to Tax Recovery Officer [Section 222]
10.4 Tax Recovery Officer by whom recovery is to be effected
[Section 223]
10.5 Stay of proceedings in pursuance of certificate and
amendment or cancellation thereof [Section 225]
10.6 Other modes of recovery [Section 226]
10.7 Priority as regards recovery of taxes
10.8 Tax Clearance Certificate [Section 230]
10.9 Recovery by suit or under other law [Section 232]
11. Refunds
11.1 Eligibility and procedure
11.2 Correctness of assessment not to be questioned [Section 242]
11.3 Interest on Refunds [Section 244A]
11.4 Set off of refunds against tax remaining payable [Section 245]
11.5 Other Provisions
BASIC QUESTIONS FOR REVISION
Income Tax Authority
1. Appointment and Control [Section 116 to 119]
1.1 Assessing Officer (AO)
1.2 Central Board of Direct Taxes (CBDT)
2. Jurisdiction of Income-tax Authorities
2.1 Jurisdiction of Assessing Officers [Section 124]
2.2 Power to transfer cases [Section 127]
2.3 Change of Income-tax Authority [Section 129]
3. Powers of Income-tax Authorities [Section 131 to 136]
3.1 Discovery, production of evidence etc. [Section 131]
3.2 Search and Seizure [Section 132]
3.3 Power to requisition books of account etc. [Section 132A]...
3.4 Application of retained assets [Section 132B]
3.5 Power to call for information and registers of companies
[Sections 133 & 134]
3.6 Power of Survey [Section 133A]
3.7 Power to collect certain information [Section 133B]
3.8 Other powers [Sections 135 and 136]
3.9 Disclosure of information regarding assesses [Section 138]
BASIC QUESTIONS FOR REVISION
Chapter 15
Tax Planning and Ethics in Taxation
1. Basic Concepts
English Scene
Indian Scene
Relevant case law
2. Tax Planning Considerations in Respect of Salary Income
I. Salary Structure
II. Employees' welfare schemes
III. Insurance policies
IV. Dearness allowance, dearness pay
V. Commission
VI. Leave travel facility
VII. Rent free accommodation / House Rent Allowance (HRA)
VIII. Medical Allowances
IX. Uncommuted/Commuted pension
X. Provident Fund
XI. Retirement benefits
XII. Pension received by non-residents
XIII. Accident insurance
XIV. Exempt perquisites
XV. Considerations for salary structuring
3. Tax Planning Considerations in Relation to Business
I. Tax Planning for Business Deductions — Some General Considerations
Capital or Revenue
Expenditure specifically allowed
Other business expenses
Commercial expediency
Tax Planning with reference to Foreign Collaborations
Planning
Double Taxation Avoidance Agreements
Section 90 — Double taxation relief—Where agreement exists
Section 119 — Power of CBDT to issue circulars
Section 4—Charge of tax
Separate contracts
Supply of capital and/or raw materials
Receipt of Income
Shares allotted to Non-Resident
Receipt—Capital or Revenue
Advance Rulings
Double taxation relief
The provisions of Section 44AB
Tax planning in case of losses
Loss Returns
4. Ethics in Taxation
4.1 Concept and significance of "Ethics" in Taxation
4.2 Fundamental ethical principles to be complied with by the
members of the profession
4.3 Ethical considerations from the tax-payer's angle and the steps taken by the Government to counteract ethical failure
on the part of the tax-payers
4.4 Role of judiciary in enforcing ethical compliance by tax-payers
4.5 Government's role in strengthening ethical standards of the tax-payer
BASIC QUESTIONS FOR REVISION
Chapter 16
Miscellaneous Provisions
1. Cognition of Accounting Principles by Judicial forums while settling tax disputes
2. Valuation of Inventory [Section 145A vs. AS-2]
Account under the income-tax law [Section 44AA]
3. The Income Declaration Scheme, 2016 [W.e.f. 1-6-2016]
4. What is E-Commerce?
A. Issues and Problems in taxing E-Commerce transactions
B. How to determine 'Economic Attachment
C. How to determine existence of a permanent establishment
D. Legal difficulty
E Nature of contract
F. Taxable jurisdiction
G. How business is transacted through E-Commerce
H Electronic advertising
L Electronic sales
J. Electronic delivery
K. Permanent Establishment in E-Commerce Situations
BASIC QUESTIONS FOR REVISION
Chapter 1
Levy of Wealth Tax
1. Levy of Wealth Tax
2. Applicability
3. Definitions
3.1 Assessee
3.2 Assessment Year and Valuation Date
3.3. Assets [Section 2(ea)]
3.4 Net Wealth
3.5 India [Section 2(ka)]
4. Deductibility of Tax Liabilities
5. Chargeability
5.1 Persons chargeable to tax
5.2 Nature of property inherited by a Hindu under Section 8 of
Hindu Succession Act
5.3 Entities not liable to tax
5.4 Gamut (Full Range) of Taxation
6. Deemed Wealth Assets belonging to others but includible in the
Net Wealth of an Individual [Section 4]
6.1 Assets transferred to certain persons
6.2 Share in partnership firms or an Association of Persons
6.3 Conversion of separate property of an individual into HUF
property or gift of individual property into HUF property
6.4 Gift by book entries
6.5 Impartible estate
6.6 Tax treatment of members of co-operative housing societies,
etc
6.7 Tax treatment in the case of part performance etc
7. Exemptions
BASIC QUESTIONS FOR REVISION
Chapter 2
Valuation under Wealth Tax Act, 1957
1. Valuation of Assets [Section 7 read with Schedule III]
2. Valuation of Assets other than Cash (Part-A)
3. Valuation of Immovable Property (Part-B)
Step 1 : Gross maintainable rent (Rule 5)
Step 2: Net Maintainable Rent (Rule 4)
Step 3: Valuation of Immovable Property (Rule 3)
Relevant definitions
I. Adjustment in the value of an asset disclosed in the balance-sheet
II. Adjustment in the value of liabilities [Rule 14(2)(e)]
III. Exclusion of certain assets from Balance-Sheet [Rule 14(2)(d)]
5. Interest in Firm or Association of Persons
6. Life Interest
7. Jewellery
8. Other Assets
BASIC QUESTIONS FOR REVISION
Chapter 3
Assessment Procedure
1. Administration
Valuation Officers
2. Assessment Procedure
2.1 Return of wealth
2.2 Revised return [Section 15]
2.3 Signing of return [Section 15A]
2.4 Self-assessment [Section 15B]
2.5 Reference to Valuation Officer
2.6 Assessment of escaped wealth
Notice can be issued
2.7 Sanctioning Authorities
2.8 Time limit for completion of assessment/re-assessment
[Section 17A]
2.9 Interest for defaults [Section 17B]
2.10 Avoidance of repetitive appeals [Section 18C]
3. Assessment in Special Cases
3.1 Assessment of executors
3.2 Assessment after partition of Hindu Undivided Family
De-recognition of partial partition
3.3 Assessment when assets are held by a Court of Wards,
Administrator General etc
3.4 Assessment of charitable trust in certain special circumstances ..
3.5 AOP without specified shares of members [Section 21AA]
3.6 Assessment of persons residing outside India
4. Penalties [Section 18]
4.1 Defaults
4.2 Penalty for failure to answer questions, sign statements,
furnishes information etc. [Section 18A]
4.3 Power to reduce or waive penalty [Section 18BJ
4.4 Power of Commissioner to grant immunity from penalty
[Section 18BA]
5. Settlement of Cases
5.1 Constitution
5.2 Application for settlement [Section 22C]
5.3 Procedure before the Settlement Commission [Section 22D]
5.4 Power of Settlement Commission to order provisional
attachment to protect revenue [Section 22DD]
5.5 Powers of the Settlement Commission
5.6 Abatement of proceeding before the Settlement Commission [Section 22HA & 22HAA]
5.7 Order of Settlement Commission to be conclusive [Section 22-1]
5.8 Recovery of settled amount [Section 22J]
5.9 Bar on subsequent application for settlement [Section 22K]
5.10 Proceedings to be judicial proceedings [Section 22L]
6. Appeals and Revision
6.1 Appeal against orders of Assessing Officers
6.2 Appealable orders before Commissioner (Appeals)
[Section 23A]
6.3 Procedure in appeal to Commissioner (Appeals)
6.4 Order of Commissioner (Appeals) under Section 23A
6.5 Commissioner's power to revise orders passed by his
subordinates [Section 25]
6.6 No time limit for revising an order to give effect to any finding
or direction contained in an order of the Appellate Tribunal, National Tax Tribunal (NTT), the High Court or the Supreme Court [Section 25(4)]
6.7 Appeal to Appellate Tribunal from orders of Commissioner
[Section 24]
6.8 Appeal to the Appellate Tribunal from orders of enhancement
by the Chief Commissioner or Commissioner [Section 26]
6.9 Direct appeal to High Court [Section 27A]
6.10 Hearing by High Court [Section 28]
6.11 Appeals to Supreme Court [Section 29]
6.12 Wealth-tax to be paid in all cases [Section 29A]
7. Collection and Refund
7.1 Collection and recovery of tax
7.2 Liability of transferees
7.3 Refunds [Section 34A]
8. Prosecution
8.1 Summary of offences and prosecution
8.2 Power of Commissioner to grant immunity from prosecution
[Section 35GA]
8.3 Offences by Hindu Undivided Families
8.4 Offences by Companies
8.5 Other provisions governing prosecutions
8.6 Presumption as to books of account etc
8.7 Power to tender immunity from prosecution
8.8 Power to take evidence on oath
9. Search and Seizure
9.1 Power of search and seizure
9.2 Power to requisition books of account, etc
10. Miscellaneous Provisions
10.1 Transfers to defraud revenue [Section 34B]
10.2 Provisional attachment of property [Section 34C]
10.3 Rectification of Mistakes [Section 35]
10.4 Deemed service of valid notice in certain circumstances
[Section 42]
10.5 Publication of information regarding assessee [Section 42A]
10.6 Return of wealth not to be invalid due to technical defects
[Section 42C]
10.7 Disclosure of information regarding assesses [Section 42B]
10.8 Presumption as to assets, books of account, etc. [Section 42D]
10.9 Rounding off net wealth and tax, etc
10.10 Rule making powers
BASIC QUESTIONS FOR REVISION |
