PART I
INCOME TAX
CHAPTER 1
History of Taxation
The Establishment of Income Tax in Modern India
Salient features of 1922
After Independence, 1947
Modernization and Tax Payer Services
Definition
What is Tax
Salient Features of Indian Tax System
(1) Increasing importance of tax revenue
(2) Tax revenue as a percentage of national income
(3) Structure of Taxes
(4) Shift in Relative Importance of Taxes
(5) Progressive Tax Rate Structure
Evaluation of the Tax System
i. Adequacy and productivity
ii. Efficiency
iii. Equity
iv. Certainty
Uses of Taxes
How does the government produce funds for this
Classification of Taxes
Direct and Indirect Taxes
Direct Tax versus Indirect Tax
What is GST (Goods and Services Tax)
What taxes will be levied under GST
CHAPTER 2
Taxation system under Constitution of India
Union list and State list relevant to Taxation
Union List
State List
CHAPTER 3
Definitions
Advance tax
1. Liability for payment of Advance Tax
2. When the advance tax liability arise
3. Due dates and Installments of advance tax
4. TDS/TCS need to be considered
5. How the advance payment can be made
6. Specific exemption from payment of advance tax
7. Consequences for nonpayment of Advance tax
Agricultural Income
Certain income which is treated as Agriculture Income
Certain income which is not treated as Agricultural Income
CASE LAWS
Conclusion
Amalgamation
Tax Relief’s and Benefits in case of Amalgamation
1. Tax Relief to the Amalgamating Company
2. Tax Relief to the shareholders of an Amalgamating Company
3. Tax Relief to the Amalgamated Company
Assessee
“assessee in default”
Normal Assessee
Representative Assessee
Deemed Assessee
Assessment year
Previous year
Business
Adventure in the Nature of Trade
Capital asset
Capital Expenditure and Revenue Expenditure
Capital Expenditure
Revenue Expenditure
Key Differences between Capital and Revenue Expenditure
Example
Conclusion
Capital Receipts and Revenue Receipts
Introduction
Capital Receipt
Revenue Receipt
Distinction between Capital Receipt and Revenue Receipt
Company
Classes of Companies
Section 2(23A)—Foreign Company
Section 6 (3). Residential Status of foreign Company
Residential Status of a Company
Income
Person
CHAPTER 4
Basis of Charge of Income Tax
Charge of income-tax
Scope of total income
Residential status
Difference between resident and not ordinarily resident
CHAPTER 5
Residential Status and its effect on Tax Incidence
Residential Status
Resident (Ordinary Resident) [Section 6(1)]
Resident but Not Ordinarily Resident
To Summarise
Non-resident [Section 2(30)]
Important Points
Residence in India (Section 6)
Important Points to be borne in Mind while Determining the Residential Status of an Individual
Points to be considered by NRIs
Residential status of Hindu Undivided Family
Ordinary Resident [Section 6(2)]
Not Ordinarily Resident [Section 6(6)(b)]
Non-Resident [Section 2(30)]
Residential Status of FIRM and AOP or BOI
Ordinary Resident [Section 6(2)]
Not Ordinarily Resident
Non-Resident [Section 2(30)]
Residential status of A Company
Ordinary Resident [Section 6(3)]
Not Ordinarily Resident
Non-Resident [Section 2(30)]
Residential status of every Other Person. [Section 6(4)]
Chargeable Income
Scope of total income
CHAPTER 6
Section 9—Income deemed to accrue or arise in India
Introduction
Legislative History
Vodafone Case and Indian Tax Laws
Section 9—Income deemed to accrue or arise in India
Nature of income brought within the tax ambit under Section 9 (1) (i), (ii), (iii)
and (iv) of the Income tax Act 1961
Business connection
Permanent Establishment
Income sought to be taxed under Section 9(v), (vi) and (vii) of the Income tax Act. 1961
Conclusion:
CHAPTER 7
Exempted Incomes
Introduction
Exemption under Special Provisions—Sections 10A/10AA/10B/10BA.
Definitions
CHAPTER 8
Trust
Registration of Trust
Procedure for registration
Cancellation of Registration granted under Section 12A
Amendment by Finance Act' 2017
Applicable
Trusts Claiming Exemption under section 11
Income from Property held under Trust—Sec. 12
Meaning of ‘Property held under Trust
Meaning of ‘Charitable Purpose’ [Sec. 2(15)1
Meaning of Religious Purpose
Advancement objects of general public utility
Charitable Trust Carrying on a Business [Sec. 11(4) & 11(4A)1
Trusts Partly for Charitable Purposes (applicable to trusts created before 1.4.1962 [Sec. ll(l)(b)]
Trusts on Income without involving Transfer of Assets
Trusts by Revocable Transfer of Assets
Trust Eligible for Exemption under section 11 and 12
Corpus Donation fully Exempt ISec. ll(l)(d)]
Income Applied to Charitable or Religious Purposes. [Sec. 11(1)1
How to determine application of income
Income Deemed to be applied to Charitable Purposes [Expl. 2 to Sec. 11(1)].
Accumulation of Income for Charitable or Religious Purposes Exemption for Income
Accumulated or Set Apart up to 15%
Exemption for Accumulation of Income in Excess of Specified Limit [Sec. 11(2)]
Purpose of Accumulation must be specified
Income by way profits and gains of business
Exemption in relaation to capital gains [Sec. 11(1A)]
Investment of Trust Funds in Specified Modes or Forms of Deposit [Sec. 11(5)]
Conditions for applicability of Sec. 11 and 12
Cancellation of Registration [Sec. 12AA (3)]
Trusts not eligible for Exemption [Sec. 13]
How can a Political party claim exemption [Sec. 13A)
Conditions for claiming exemption under section 13A
Exemption to Electoral Trust [Sec. 13B]
CHAPTER 9
Heads of income
Introduction
Five main Income tax heads
Income from salary
Income from house property
Profits and gains of business or profession
Capital gains
Income from other sources
CHAPTER 10
Salary
Income under the head “Salaries”
Salary [Section 17(1)]
Perquisites
Taxation of perquisites
Perquisites taxable in the hands of the employee as a part of salary income
Valuation of perquisites taxable in the hands of the employee
Where accommodation is provided by the Central Government or any State Government
Where unfurnished accommodation is provided by any employer other than the
Central Government or any State Government
Where furnished accommodation is provided by any employer other than the
Central Government or any State Government
Where accommodation is provided by the employer in a hotel
Exception for accommodation in mining site, onshore oil exploration site, etc
Exception for accommodation on account of transfer
Value of benefit from the provision of the services of a sweeper,
a gardener, a watchman or a personal attendant
Value of benefit resulting from the supply of gas, electric energy or water
Value of benefit resulting from the provision of free or concessional educational facilities
Value of the benefit resulting from the provision of interest-free or concessional loan
Value of benefit resulting from the use of any movable asset
Value of benefit to the employee arising from the transfer of any movable asset
Certain perquisites and allowances exempt from income tax
Provision of medical facilities, etc. (Proviso to Sec. 17(2))
Exemption for employees with salary not exceeding Rs. 1 lakh
Exemption of leave travel concession for travel in India
Exemption of perquisites allowed outside India by the Government to a citizen of India
Exemption of children’s education allowance and transport allowance subject to limits
CHAPTER 11
Income from house property
Conditions necessary for taxing income from house property
‘Owner’-concept
Ownership is relevant for the previous year
Deemed ownership
Co-ownership
Annual value how determined
Determination of income from house property
Determination of Annual Value of Self-occupied property
Annual Value of one house away from work place
Determination of Annual Value of Let out house properties
Deductions from income from house property
Interest for pre-construction period
Benefit for vacancy for the period when the property remains vacant (in cases of let out properties
Exclusion of unrealised rent from annual value (Expl. to Section 23(1))
Amount not deductible from income from house property
Special provision for cases where unrealised rent allowed as deduction is realised subsequently
Set off and carry forward of loss in cases of house properties
(A) Where the property has been let out
(B) Where the house is self occupied
Computation of income from self occupied property
Interest on borrowed capital for self occupied property
Deduction under section 80C in relation to investment in new residential
house property
CHAPTER 12
Income From Business/Profession
Section 2(13) : Business
Section 2 (36): Profession
Method of computing taxable income
Basis of charge: Section 28
Speculation Business [Explanation to Section 28]
Speculative Business is Distinct Business
Why Distinct Business?
What is speculative transaction?
What shall not deem to be speculative transactions
What is Eligible Transaction for security derivative
What is Eligible Transaction for Commodity derivative
A single transaction cannot constitute speculative business
Treatment of Losses in Speculation business
Computation of income from business (Section 29)
Deductions for expenses specifically allowed under Section 30 to Section 43D
1. Rent, rates, taxes, repairs and insurance of building (Section 30)
Rules from Section 30 Income Tax Act
Tenant
Capacity of Owner
Insurance
Usage Basis
Rent Allowability
Depreciation
2. Repairs & Insurance of machinery. Plant & Furniture (Sec.31)
3. Depreciation under section 32
Rates of depreciation
Additional depreciation
Rate of additional depreciation: 20% of actual cost
Unabsorbed deprivation [Section 32(2)1
Investment Allowance for investment in new plant and machinery [U/s 32AC]
Tea development account, coffee development account and rubber
development account [Section 33AB]
Site Restoration Fund [Section 33ABA]
Reserve for shipping business [Section-35]
Expenditure on Scientific Research [Section-35]
Expenditure on acquisition of patent rights or copyrights [Section-35A]
Important point
Tax Treatment on Sale of Patent/Copy right covered under section 35A
Expenditure on Know-How [Section-35AB]
Expenditure for obtaining License to operate Telecommunication Services
[Section-35ABB]
Deduction in respect of expenditure incurred on setting up of a Specified
Business [Section-35AD]
Rate of Deduction
Expenditure by way of payment to associations and institutions for carrying out
rural development programmes [Section-35AD]
Conditions :
Amortisation of Certain Preliminary Expenses [Section-35D]
Expenditure on Demerger or Amalgamation [Section-35DD]
Amortisation of Expenditure Incurred Under Voluntary Retirement Scheme [Section-35DDA]
Expenditure on Prospecting etc., for certain Minerals [Section-35E]
Deduction u/s. 36 & 37
General Expenditure for the purpose of business or profession Section 37
Expenses Not Deductible Under Section 37
Section 14A : Disallowance of Expenditure incurred in relation to income
exempt from tax
Background
Position prior to the introduction of section 14A
Objective behind insertion of section 14A with retrospective effect
Legislative history in brief
Analysis of section 14A
Expenditure incurred in relation to income which does not form part of the
total income [Section 14A(1)]
Relevance of the words ‘in relation to’
Relevance of the word ‘expenditure incurred’
CBDT’s clarification regarding disallowance of expenses under
section 14A in cases where corresponding exempt income has not been
earned during the financial year
Determination of expenditure incurred in relation to exempt income by the
Assessing Officer [Section 14A(2)]
Determination of expenditure incurred in relation to exempt income
by the Assessing Officer when assessee claims that no
expenditure has been incurred [Section 14A(3)]
Prescribed method of determining the quantum of expenditure incurred
for earning exempt income [Rule 8D]
Deductions under section 40
Deduction to firm / AOP on certain appropriations
EXPENSES OR PAYMENTS NOT DEDUCTIBLE IN CERTAIN
CASES UNDER SECTION 40 A
Payments to certain persons which are unreasonable or excessive under Section 40A(2)
Payments exceeding 10,000 made otherwise than by a crossed cheque or a draft
Provision made for payment of gratuity under section 40 A (7)
Contributions by employer to non-statutory funds under section 40A(9) & 40A (10)
Deduction under section 43
Insurance business [Section 44]
Special provision for deduction in the case of trade, professional or similar
association [Section 44A]
Maintenance of accounts by certain persons carrying on profession or business [Section-44AA]
Rule 6F: Books of Account to be maintained
Books to be maintained
Period for which the Books & other documents to be maintained
Place where Books to be maintained
Audit of accounts of certain persons carrying on business or profession
[Section 44AB]
Due date by which a taxpayer should get his accounts audited
Penalty for not getting the accounts audited as required by
section 44AB
Special provision for computing profits and gains of business on
presumptive basis [Section-44AD]
Applicability of the scheme
Eligible business
Scheme of computation of income
Provisions relating to various allowances/disallowances
Provisions in case of a partnership firm
Provisions relating to maintenance of books of account
Declaration of lower income
Declaration of higher income
Applicability of Provisions of Advance Tax
Special provision for computing profits and gains of profession on
presumptive basis [44ADA]
Eligible Professions under section 44ADA
Computation of Presumptive Income under section 44ADA.
Applicability of Provisions of Advance Tax
Special provision for computing profits and gains of business of plying.
hiring or leasing goods carriages [Section-44AEl
Applicability of Section 44AE
Eligibility
Calculation of Income under Presumptive Scheme
Calculation of Presumptive Income in case of Partnership
Treatment of Depreciation under Section 44AE
Maintenance of Books of Accounts under Presumptive Scheme
Declaration of Lower Income
Declaration of Higher Income
Special provision for computing profits and gains of shipping business
in the case of non-residents [Section 44B]
Special provision for computing profits and gains in connection with the
business of exploration, etc., of mineral oils [Section-44BBl.
Special provision for computing profits and gains of the business of
operation of aircraft in the case of non-residents [Section-44BBA].
Special provision for computing profits and gains of foreign companies engaged in the business of
civil construction, etc., in certain turnkey power projects [Section-44BBBJ
Special provisions for computing income by way of royalties, etc., in the
case of foreign companies [Section-44D]
Special provision for computing income by way of royalties, etc., in case of non-residents [Section-44DA]
CHAPTER 13
Capital Gain
Capital Gain [Section 451
Capital Assets
Types of Capital Assets
Short-term capital asset
Long-term capital asset
Transfer
Transfer of a Capital Asset [Section 2(47)] for Computing
Capital Gain
Tax on Short-Term and Long-Term Capital Gains
Tax on Equity and Debt Mutual Funds
Change in Tax Rules for Debt Mutual Funds
Calculating Capital Gains
Terr, is one need to Know
Cost of acquisition
Cost of improvement
How to Calculate Short-Term Capital Gains
How to Calculate Long-Term Capital Cains
In the case of sale of shares, you may be allowed to deduct these expenses
Indexed Cost of Acquisition/Improvement
Indexed cost of improvement is calculated as
Exemption on Capital Gains
Section 54: Exemption on Sale of House Property on Purchase of another House Property
Section 54B: Exemption on Capital Gains from Transfer of Land Used
for Agricultural Purpose
Saving Tax on Sale of Agricultural Land
Section 54D: Capital Gains on Compulsory Acquisition of Land and Buildings
Non-utilisation of Long Term Capital Gain before due date of filing of return [Section 54D(2)]
Section 54E: Capital gain on transfer of capital assets not to be charged in certain cases
Section 54EA: Capital gain on transfer of long-term capital assets not to be charged
in the case of investment in specified securities
Section 54EB: Capital gain on transfer of long-term capital assets not
to be charged in certain cases
Section 54EC: Capital gain not to be charged on investment in
certain bonds
Application of Section 54EC
Tax Deductions Under Section 54EC Based On Amount Invested
Maximum Limit Permitted Under Section 54EC
Lock In Period Specified Under Section 54EC
Other Exemptions Permitted Under Section 54EC
Bonds Acquired or Purchased Jointly By Two Individuals
Depreciable Assets
Non-Availability of Long-Term Specified Assets
Installments
Closure of Subscription
Section 54ED: Capital gain on transfer of certain listed securities or
unit not to be charged in certain cases
Section 54EE: Capital gain not to be charged on investment in units of a specified fund
Section 54F: Exemption on capital gains on sale of any asset other than a house property
Section 54G: Exemption of capital gains on transfer of assets in cases
of shifting of industrial undertaking from urban area
Amount of exemption
Non-utilization of amount before filing of return [Section 54G(2)].
Section 54GA: Exemption of capital gains on transfer of assets in cases of shifting
of industrial undertaking from urban area to any Special
Economic Zone
Amount of Exemption
No transfer of new assets within 3 years
Section 54GB: Capital gain on transfer of residential property not to be charged in certain cases
Section 54H: Extension of time for acquiring new asset or depositing or investing amount
of capital gain
CHAPTER 14
Income from Other Sources
Section 56: Income from other sources
Under Section 56(2), the following incomes are always chargeable
under the head “Income from other sources”
Section 56(2)(vii)—Gifts not chargeable to tax
Section 57- Expenditures allowed as deductions
Section 58: Sum not allowed as deductions while computing taxable
income
CHAPTER 15
Income of Other Persons, Included in
Assessee’s Total Income (Clubbing of Income)
Introduction
Objective
Section 60: Transfer of income where there is no transfer of assets
Section 61. Revocable transfer of assets
Clubbing of Income for Revocable Transfer of Assets
Transfer irrevocable for a specified period
"Transfer" and "revocable transfer" defined
Additional points:
Section 64: Income of other persons included only in the Individual’s total income
Income of Individual to include income of spouse and sons wife—Sec. 64(1)
Remuneration of spouse from a concern in which the other spouse has substantial interest
- Sec. 64(1 )(ii)
Income accruing or arising from the assets transferred by one spouse to another
without adequate consideration—Sec. 64(l)(iv)
Income from assets transferred to son’s wife without adequate consideration - Sec. 64(l)(vi):
Common issues in Sec. 64(1) (iv) and (vi)
Income from assets transferred to any person / persons or AOP for the immediate or deferred benefit of spouse /son's wife without adequate consideration—Section 64(l)(vii) / 64(l)(viii) Income of Individual to include income of Minor child—Sec. 64(1 A)
Income of Individual to include income of HUF—Sec. 64(2)
Liability of person in respect of income included in the income of another person—Sec. 64(5)
CHAPTER 16
Deemed Income (Special Act)
Deeming Provisions of Income under section 68 and 69 of the Income Tax Act, 1961
General Background of Sections 68 to 69D
Section 68: Cash Credits
Introduction
Applicability of Section 68
Detailed Analysis of Section 68
Requirements to avoid application of the Provision
a) Identity of the creditors:
b) Capacity of creditors to advance money
c) Genuineness of transaction
Ingredients of section 68—cash credits
Section 69: Unexplained investments
Section 69 has been reproduced below
Ingredients of section 69
Section 69A: Unexplained money, etc
Ingredients of section 69A
Section 69B: Amount of investments, etc., not fully disclosed in books
of account
Ingredients of section 69B
Section 69C: Unexplained expenditure, etc
Ingredients of section 69C
69D: Amount borrowed or repaid on hundi
Ingredients of section 69D
Year of Taxability
Scope of Section 115BBE:
Tax rates applicable to amount charged to tax by virtue of
sections 68, 69, 69A, 69B, 69C and 69D
Tax Offered
CHAPTER 17
Set off, or carry forward losses
Set off and carry forward of losses
Meaning of Set off and Carry forward
The sequence for set-off & carry forward of losses
Intra-Head Adjustment:
Meaning of Intra-Head Adjustment
Restrictions to be kept in mind while making intra-head adjustment
of loss
Admissible Set-off
a) Speculative Business Losses
b) Long Term Capital Losses
c) Loss from owning and maintaining race horses
d) Loss of specified Business under section 35AD
Section 71: Set off of loss from one head against income from another.
Inter head Adjustments:
Restrictions to be kept in mind while making inter-head adjustment of loss
a) House Property Losses
b) Non Speculative Business Losses
Section 71 A: Transitional provisions for set off of loss under the head
"Income from house property”
Carry forward of Losses:
Section 7IB: Carry forward and set off of loss from house property
House Property Losses
Limitation of amount up to 2 Lakhs
Section 72: Carry forward and set off of business losses
Nori Speculative Business Losses
Section 72A: Provisions relating to carry forward and set off of accumulated loss and
....... unabsorbed depreciation allowance in amalgamation or demerger, etc
Section 72AA: Provisions relating to carry forward and set-off of accumulated loss
....... and unabsorbed depreciation allowance in scheme of amalgamation of banking
....... company in certain cases
Section 72AB: Provisions relating to carry forward and set-off of accumulated loss
and unabsorbed depreciation allowance in
business reorganisation of co-operative banks
Section 73: Losses in speculation business
Speculative Business Losses
Section 73A-. Carry forward and set off of losses by specified business
Specified Business Losses
Section 74: Losses under the head "Capital gains"
Long term/Short term Capital Losses
Section 74A: Losses from certain specified sources falling under the
head "Income from other sources"
Loss from Owning and maintaining race horses
Section 78: Carry forward and set off of losses in case of change in
constitution of firm or on succession
Section 79: Carry forward and set off of losses in case of certain
companies
Exception
CHAPTER 18
Deductions
Introduction
Deductions—Basic Concepts
Deduction in respect of Payments
Section 80C: Deduction in Respect of Life Insurance Premium.
Deferred Annuity, contributions to Provident Fund. Subscription
to certain Equity Shares or Debentures, etc
Other important provisions
Section 80CCC: Deduction in respect to contribution to certain
Pension Fund
Section 80CCD: Deduction in respect to contribution to Pension Scheme
of Central Government
Section 80D: Deduction in Respect of Medical Insurance Premia
Section 80DD: Deduction in Respect of Maintenance including
Medical Treatment of Dependant Disabled
Persons eligible to get deduction—Resident individual/ HUF
Amount of deduction
Section 80DDB: Deduction in Respect of Medical Treatment, etc
Persons eligible to get deduction—Individual or HUF
Section 80E: Deduction in respect of Interest on Loan Taken for Higher Education
Section 80G: Deduction in respect of Donations to Certain Funds,
Charitable Institutions, etc
Amount of deduction
Section 80GG—Deduction in respect of Rent Paid for Residence
Conditions—
Deduction in respect of Incomes
Section 80QQB: Deduction in respect of Royalty income of authors
of certain books other than text books
Amount of deduction
Other Important Conditions
Section 80 RRB: Deduction in respect of Royalty on patents
Other Deductions
Section 80U: Deduction in the case of a person with disability.......
Conclusion
CHAPTER 19
Rebate and Relief
Section 87A.—Income Tax Rebate
Eligibility to Claim Rebate under Section 87A FY 2019-20
(AY 2020-21)
Section 89.—Relief when salary, etc. is paid in arrears or in advance.
When an employee can claim this Relief
Step for Calculation of Relief U/s 89
Difference between Income Tax Deduction, Rebate and Relief.
CHAPTER 20
Tax Avoidance
Special Provisions Relating To Avoidance of Tax Law
Interpretation of Tax Avoidance in developed countries
Importance of Statutory Interpretation of Tax Avoidance in India
Applicability of Chapter X of the Income Tax Act 1961
“Income"
“Associated Enterprise”
International transactions
Section 92C. Computation of arms length price
GENERAL ANTI AVOIDANCE RULES (GAAR)
Introduction
Purpose of GAAR
Applicability of GAAR
GAAR will not apply to the arrangements as follows
Tax Avoidance v. Tax Evasion
Introduction
Tax Avoidance
Characteristics of Tax Avoidance
Perception of Court’s on Tax Avoidance
Tax Evasion
Activities relating to Tax Evasion
Perception of Judiciary on Tax Evasion
Conclusion
CHAPTER 21
Double Taxation
CHAPTER - IX Section 90 / 90A / 91 Double taxation avoidance
agreements (DTAA)
What is ‘Double Taxation
CHAPTER 22
Income Tax Authorities
Introduction
Various authorities
(1) Administrative Income Tax Authorities
The Central Board of Direct Taxes
Principal Directors General/Director General/ Director
Principal Chief Commissioners/Chief Commissioners/
Commissioners of Income Tax
Commissioners (Appeals)
Additional Commissioners/ Joint Commissioners
Deputy Commissioners of Income-tax/Assistant Commissioners of Income-tax
Income-Tax Officers
Tax Recovery Officer
Inspectors of Income-Tax
Assessing Officer [ Sec. 2(7A)j
Importance of Assessing Officer
Section 117: Appointment of Income-Tax Authorities
Section 118: Control of Income-Tax Authorities
(2) Judicial Income Tax Authorities
Power to Transfer Cases [Section 127]
Opportunity of Being Reheard [Section 129]
Discovery. Production of Evidence etc. [Section 131]
Search and Seizure & Survey
Power to Requisition Books of Account etc. [Section 132A]
Application of Retained Assets [Section 132B]
Power to call for information [Sections 133]
Power of Survey [Section 133A]
Power to Collect Certain Information [Section 133B)
Power to Inspect Registers of Companies [Section 134]
Other Powers [Sections 135 and 136]
Jurisdiction of Income Tax Authorities
CHAPTER 23
Assessment Procedure
Section 139: Return of Income
Section 139(1)—Compulsory filing of return of income
1. Income Tax Slab Rate for AY 2018-19 for Individuals
2. Income Tax Rates for HUF/AOP/BOI/Any other Artificial
Juridical Person
3. Tax Rate For Partnership Firm
4. Income Tax Slab Rate for Local Authority
5. Tax Slab Rate for Domestic Company
6. Tax Rates for Foreign Company
7. Income Tax Slab for Co-operative Society
Section 234A—Interest for default in furnishing return of income
Section 139(1A)—Option to furnish of Income to Employer
Section 139( 1B)—Income—tax Return through computer readable media.
Section 139(1C)—Specified class or classes of persons to be exempted from filing Return of Income
Section 139(3)—Return of Loss
Section 139(4)—Belated Return
Section 139(4A)—Return of income of Charitable Trusts and Institutions
Section 139(4B)—Return of Income of Political Parties
Section 139(4C)—Mandatory filing of returns by Scientific Research
Associations, News Agency, Trade Unions, etc
Section 139(4D)—Mandatory filing of returns by Universities, Colleges etc.
Section 139(5)—Revised Return
Section 139(6)—Particulars to be furnished with the return
Section 139(6A)—Particulars to be furnished with return of income in the case of
an assessee engaged in business or profession
Section 139(9)—Defective Return
Section 139A—Permanent Account Number [PAN]
Section 140—Authorised Signatories to the Return of Income
Self-assessment. 140 A
Aadhaar No. M -idatory w.e.f. 01.07.17
Penalty/Prosecution for Not Filing/Late Filing of Return
Filing of Revised .’etur:
Interest for Late Filing of Income Tax Return
Interest for Short Payment/Non Payment of Advance Tax
Forms of Return
CHAPTER 24
Assessment
Meaning of assessment. Scope/Procedure/Time limit of Assessment
under section 143(l)/section 143(3)/section 144/section 147
Meaning of assessment
Assessment under section 143(1)
Scope of assessment under section 143(1)
Procedure of assessment under section 143(1)
Time-limit
Assessment under section 143(3)
Scope of assessment under section 143(3)
Procedure of assessment under section 143(3)
Time-limit
Assessment under section 144
Scope of assessment under section 144
Procedure of assessment under section 144
Time-Limit
Assessment under section 147
Scope of assessment under section 147
Procedure of assessment under section 147
Time-limit for completion of assessment under section 147
Time-limit for issuance of notice under section 148
CHAPTER 25
Appeal
Meaning
'Right To Appeal’ Is a Statutory Right Under Income Tax Act
Parties to an Appeal
Various Appellate Authorities under Income Tax Act
Appeal before Commissioner (Appeals)
Appealable order
Form of appeal
Signature to the appeal
Pre-deposit of tax
Decision of the Commissioner of Income-tax (Appeals)
Disposal of appeal
Appeal before Income Tax Appellate Tribunal (ITAT)
Appealable orders in case of appeal by the taxpayer
Appealable orders in case of appeal by the Commissioner
Appeal not to be filed by the department in certain cases
Hearing of the appeal by the ITAT
Order of the ITAT
Disposal of appeal
Stay application
Rectification of Appellate Order
Appeal before High Court
What about those issues which are not raised before the ITAT at all?
Appeal before Supreme Court
Special Leave Petitions in India
Restrictions
PART II
GOODS AND SERVICE TAX
CHAPTER 1
History
European Union (EU)
Canada
New Zealand
Australia
India
CHAPTER 2
Goods and Service Tax Act, 2017
Introduction
Supply—Meaning
(i) Supply of goods and/or services
(ii) Supply for a consideration
(iii) Supply made in the course or furtherance of business
(iv) Supply made in the taxable territory
(v) Supply—a taxable supply;
(vi) Supply—by a taxable person;
CHAPTER 3
Definitions
Definition of Good and Service Tax (GST)
Structure
Central Goods and Service Tax (CGST)
State Goods and Service Tax (SGST)
Inter-State Goods and Service Tax (IGST)
State taxes
Central taxes
Principles
Levy and Collection (Section 9)
Objectives of GST
CHAPTER 4
Administration and Collection of Tax
Classes of officers under the Central Goods and Services Tax Act
Appointment of officers
Powers of officers under the Central Goods and Services Tax Act
Authorisation of officers of State tax or Union territory tax as proper
officer in certain circumstances
Scope of supply:
Levy and Collection of GST
First part (Normal charge or forward charge)
Second part (Reverse charge)
Third part (E-commerce operator)
Power to grant exemption from tax
CHAPTER 5
Time Place and Value of supply
1. Time of Supply
A. Time of Supply of Goods
B. Time of Supply for Services
C. Time of Supply under Reverse Charge
When time of supply cannot be determined
2. Place of supply
A. Place of Supply of Goods
B. Place of Supply for Services
3. Value of Supply of Goods or Services
CHAPTER 6
Registration under GST Law
Introduction
Constitutional validity
Need and advantages of registration
Liability to register
Nature of Registration
Standardisation of procedures
a) Details to be furnished
b) Reference Number
c) Application
d) Specified Documents
A. Documents required for Private Limited Company, Public Company
(limited company) / One Person Company (OPC)
i) Company documents
ii) Director related documents
iii) Registered Office documents
B. Documents required for Limited Liability Partnerships (LLPs)
i) LLP Documents
ii) Designated Partner related documents
iii) Registered Office documents
C. Documents required for Normal Partnerships
i) Partnership documents
ii) Partner related documents
iii) Registered Office documents
iv) Individual documents
v) Registered Office documents
Person liable for registration under GST
Persons not liable for GST registration
Compulsory GST registration in certain cases
Deemed Registration under GST
GST Registration for casual taxable or non-resident taxable person.
Amendment of GST Registration
Cancellation of GST registration
Revocation of cancellation of GST registration
CHAPTER 7
Assessment
Accounts and Other Records
Maintenance of Accounts by Registered Persons
Generation and Maintenance of Electronic Records
Caution to be of Electronic Records
Records to be Maintained by Owner or Operator of Godown or
Warehouse and Transporters
Period for Retention of Accounts under GST
Consequences of Not Maintaining Proper Records
Assessment and Audit under GST
Types of Assessment under GST
Self Assessment under GST (Section 59)
Scrutiny of Returns under GST (Section 61)
Best judgment assessment, i.e. Assessment of Non-filers of Returns and
Unregistered person under GST (Section 62 and 63)
Assessment in Special Cases under GST (Section 64)
Audit by Tax Authorities under GST (Section 65)
Special Audits (Section 66)
GST Payments and Refunds
GST payment can be made in 2 ways
Refunds
Inspection. Search and Seizure
Search
Inspection
Section 68—Inspection of goods in movement
Section 69—Power to Arrest
Offences where arrest allowed
Offences where arrest not allowed
APPEALS AND REVISION
Fees for filing GST appeals process
Appeals to First Appellate Authority
Revisional powers of Commissioner
Constitution of the National Appellate Tribunal
Appeals to the Appellate Tribunal
Orders of Appellate Tribunal
Appeal to the High Court
Appeal to the Supreme Court
Non Appealable decisions and orders
CHAPTER 8
Advance Ruling under GST
Advance Ruling
Applicant and Application for Advance Ruling under GST
Advance Ruling—Its Objectives
Advantages of Advance Ruling under GST
Cases Where Advance Ruling can be sought
Authority for Advance Ruling under GST
Processing of Application before the AAR
Time-limits
Appeal Mechanism in Respect of Advance Rulings
Binding Nature of the Advance Rulings
Rectification of Advance Ruling
CHAPTER 9
Offences and Penalties under GST
Offence
Fake or Incorrect Invoices / Bills
Fraud
Tax Evasion
Supply or Transport of Goods
Other offences under GST
Penalty
Penalties in GST
1 Carrying out fraudulent activities
2 Delayed filing of returns
3. Not issuing accurate invoices
4. Supplying goods and services in contravention to GST laws
5. Evading taxes on purpose
6. Participating in activities that involve tampering/obstruction
7. Repeatedly making short payments
Any other breach of law
Common penalty:
What happens after a penalty is imposed on the taxpayer
PART III
Integrated Goods and Services Tax Act
Introduction
INTEGRATED GST
Administration
Section 3—Appointment of Officer
Section 4—Authorisation of Officers of State Tax or Union Territory Tax as proper of
Officer in certain circumstances
Section 5.—Levy and Collection of Collection
Determination of nature of supply
Section 7—Inter-State supply
Section 8—Intra-State supply
Section 9—Supplies in territorial waters
Place of Supply
Place of supply outside India- Section 13 of the IGST Act
Section 15—Refund of integrated tax to international tourist
Section 16—Zero rated supply
PART IV
The Union Territory Goods and Service Tax Act, 2017
(UTGST)
Introduction
Objects and Reasons
Applicability of provisions of Central Goods and Services Tax Act, 2017
Administrative
Levy and Collection of Tax
Payment of tax
Inspection, Search. Seizer and Arrest
|
