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Thread: IPCC - Tax notes.

  1. #11
    anand
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    Route Map For House Property

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  2. #12
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    Profit and Gains from Business and Profession


    • Classification of Scientific Research Expenditure -Section - 35
    • Basis of Change -Section - 28
    • Incomes Chargeable To Tax Under The Head Business/Profession - Section -28


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  3. #13
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    Income from Other Sources

    Question No.1. A Company, incorporated for the manufacture of steel, had not commenced production. The plant and machinery was in the stage of erection. During the previous year ending 31.3.2008, it paid .interest on borrowings, amounting to Rs.20 Lakhs. It also received interest of Rs. 1.50 Lakhs on investment in Short-Term deposits of moneys not immediately required for business. The Assessing Officer assessed the interest income under other sources. Discuss the correctness of the assessment.

    a) Interest on surplus funds: Interest income earned on deposits made out of surplus funds before commencement of business is taxable as "Income from other sources".
    b) In view of the above judgement, the sum received as interest on deposits shall be charged to tax under the head 'Income from Other Sources'.
    c) No part of the interest paid on the loan borrowed shall be allowed as deduction u/s 57 as the same was not borrowed wholly and exclusively for the purpose of earning such interest. Whole of such interest shall be capitalised.
    d) Therefore, the action of the Assessing Officer is correct.

    Question No.2. A Chartered Accountant handles the moneys belonging to his clients and maintains a separate account for these moneys. Part of these moneys, In excess of current requirements, is kept in deposit on which interest is earned. The Assessing Officer proposes to assess the interest income in the hands of the Chartered Accountant. How would you contest the action of the Assessing Officer?

    a) Under the Chartered Accountants Act, 1949, a Chartered Accountant has to keep the monies belonging to a client in a separate bank account. He holds these funds only in a fiduciary capacity. Therefore, the Chartered Accountant cannot make use of such monies for his own benefit.
    b) The beneficial interest in the monies so deposited in a separate bank account lies with the owner of the funds, i.e. the clients. Therefore, the interest accrued on such funds also belongs to the clients.
    c) In view of the above, the interest do not accrue in the hands of the Chartered Accountant and hence not chargeable to tax in his hands.
    d) Therefore, action of the Assessing Officer is not correct.

    Question No.3. Discuss the correctness or otherwise of the following proposition: Kumar took part in a motor-car rally and is awarded a prize money of Rs. 10,000 for winning a race. He claims that the amount of Rs. 10, 000 is exempt from tax.

    a) Winnings from motorcar rally are a return for skill and endurance. It is taxable as income.
    b) In view of the above Supreme Court ruling, the amount of Rs.10,000 won by Mr. Kumar shall be treated as income and chargeable to tax under the head Income from Other Sources.
    c) Therefore, contention of Mr. Kumar is not correct and valid in law.

    Question No.4. Discuss the taxability of gifts received by an Assessee.

    1. Applicability: Gifts received by Individual and HUF irrespective of Residential Status.

    2. Taxability:
    Any sum of money, aggregate value of which exceeds Rs.50,000, is received during the previous year without consideration, by an Individual or a HUF from any person(s) on or after 1.4.2006, then the whole of the aggregate of such sum will be taxable.

    3. Exceptions:


    (a) Gifts received from the following persons not taxable -


    • From a relative, or
    • On the occasion of the marriage of the individual, or
    • Under a will or by way of inheritance, or
    • In contemplation of death of the payer, or
    • Any Local Authority, or Fund / Foundation / University / Educational Institution or Hospital or
    • other Medical Institution or
    • Trust or Institution referred u/s 10(23C), or
    • Trust / Institution registered u/s 12AA

    (b) Gifts received in kind not taxable.

    4. Relative means:

    (a) Spouse of the individual,
    (b) Brother or sister of the individual,
    (c) Brother or sister of the spouse of the individual,
    (d) Brother or sister of either of the parents of the individual,
    (e) Any lineal ascendant or descendant of the individual,
    (f) Any lineal ascendant or descendant of the spouse of the individual,
    (g) Spouse of the person referred to in clauses (b) to (f) above.

    Question No.5. B an individual, gets Rs.70,000 as a birthday gift from his Grandfather. Is the receipt taxable under the Income Tax Act? .

    Answer:
    B has received the gift from his grandfather. Grandfather is a relative. Hence, the receipt is not taxable.

    Question No.6. Discuss the taxability or otherwise of the following gifts received by H, an individual, during the Financial Year 2007-08:
    (a) Rs. 25,000 each from his four friends on the occasion of his birthday.
    (b) Wrist watch valued at Rs. 40,000 from his friend.

    Answer: (a) Rs.1,00,000 (i.e. Rs. 25,000 x 4) from his four friends on the occasion of his birthday, is taxable as income from other sources, since friends are not relatives and the amount has exceeded Rs.50,000.
    (b) Gift in kind is not taxable. Hence, wrist watch of Rs.40,000 received as a gift from friend is not taxable.

    Question No.7. Fiona received the following gifts during the year ending 31.03.2008:
    (a) Rs. 40, 000 from her elder sister.
    (b) Rs.60,000 from the daughter of her elder sister.
    (c) Rs. 1,25,000 from various friends on the occasion of her marriage,
    Discuss the taxability or otherwise of these gifts in the hands of Fiona.

    Answer: (a) Rs.40,000 received from elder sister, is not taxable, as elder sister is a relative.
    (b) Rs.60,000 received from the daughter of her elder sister, is taxable, as the donor, in this case, is not a relative as per the definition of the Act.
    (c) Rs.1,25,000 is not taxable as it is received on the occasion of her marriage.

    Question No.8. Discuss the taxability of Family Pension.

    Answer:
    Family pension means pension received by the family members of the deceased employee.
    It is chargeable to tax under the head 'Income from Other Sources'.
    Deduction u/s 57: Least of the following is allowed as a deduction -
    (a) 33 1/3 % of gross pension
    (b) Rs.15,000

    Exemptions:

    (a) Family pension received by family members of Army personnel who are recipient of gallantry awards
    [Section 10(18)].
    (b) Family pension received by the widow or children or nominated heirs of a member of the armed forces
    (including para-military forces) whose death has occurred in the course of operational duties [Section
    10(19)].

    Question No.9. V. G. had placed a deposit of Rs. 10 Lakhs in a bank on which he received interest of Rs.80, 000.
    He had also borrowed Rs.5 Lakhs from the same bank on the security of the deposit and was liable to pay
    Rs.50,000 by way of interest to the bank. He therefore offered the difference between two amounts of Rs.30,000
    as income from other sources. Is this correct?

    Answer: (a) U/s 57, any expenditure (not being capital expenditure) expended to earn income chargeable under
    the head "Income from Other Sources" will be allowed as deduction against such income.
    (b) Interest on bank FD was the income in the hands of the assessee and the interest on the loan taken from bank
    on that deposit is not an allowable expenditure.
    Therefore, in the given case, the interest of Rs.50,000 paid by VG is not allowable as deduction, and the entire interest of Rs.80,000 is fully taxable.

    Question No.10. Shrey purchased in 2002, 10,000 Shares of Hero Ltd. for Rs.5 Lakhs by borrowing money from a bank. He holds them as 'Investments’. He received dividend during the previous year 2007-08. He has paid interest of Rs.85,000 on the loan to the bank during the previous year. Please advise Shrey, how should he deal with these facts in computing his income?

    Answer: (a) In computation of total income under the Income Tax Act, the expenditure incurred in relation to income, which does not form part of Total Income, shall not be allowed as deduction. [Section 14A]
    (b) Dividend Income is exempt u/s 10(34) and hence does not form part of Total Income.
    Therefore, the interest payment is not an allowable expenditure.


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  4. #14
    anand
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    Income from Other Sources




    Section-56 – Charging Section
    Income from: -

    1. Sub-letting of House Property.
    2. Director’s Sitting Fees.
    3. Family Pension.
    4. Income from Undisclosed Sources.
    5. Remuneration received by members of Parliament.
    6. Examination Fees from Non-employer.
    7. Rent from a vacant piece of Land.
    8. Interest on URPF on Employer’s Contribution.
    9. Agriculture Income from land situated outside India.
    10. Guarantee Commission/Underwriting Commission to Directors.
    11. Gratuity received by a Director not as an employee.
    12. Gift Tax: Money (Cash) received by Individual/HUF without consideration from any person(s), if exceeds Rs.50,000 then whole amount shall be taxable.
    13. Award to Profession Sportsman is Taxable. Award to Non-Profession Sportsman is not Taxable
    14. Composite Rent Separable: HP and PGBP, Not separable: Whole in OS.
    15. Lottery Prize: Books Maintain: Accrual Basis, No Books: In the year of Receipt. In another case: Only on receipt basis.



    Section-57 – Any revenue expenditure expended to earn income chargeable u/h OS will be allowed as deduction against such income.


    Section-56 – Taxation of Gifts

    1. If any sum of money aggregate value of which exceeds Rs.50,000, is received during P.Y. without consideration, by an Indivdual/HUF from any person(s), then the whole of the aggregate of such sum shall be taxable.
    2. Exceptions: -

      1. Gift received in kind is not taxable.
      2. Gift from the following persons is not taxable: -



    • On occasion of Marriage of Individual.
    • Under a Will or by way of Inheritance.
    • In contemplation of death of the payer.
    • Any Local Authority.
    • Trust/Foundation/University/Institution etc. referred u/s-10(23D).
    • Trust/Institution registered u/s-12AA.
    • From a Relative. Relative means: -

          • Spouse, Brother/Sister of Spouse, Any lineal ascendant or descendant of the spouse of the Brother/Sister of.
          • Brother/Sister of Individual, Brother/Sister of Parents, Any lineal ascendant or descendant of the Individual.
          • Spouse of the persons referred above.




    Q. D, a lady, received the following gifts during the year ending 31.3.2006:

            1. Rs.30,000 from her elder sister.
            2. Rs.50,000 from the daughter of her elder sister.
            3. Rs.1,25,000 from various friends on the occasion of her marriage.
            4. Watch valued Rs.60,000.
            5. From Grandfather on Birthday Rs.60,000.

    Discuss the taxability or otherwise of these gifts in the hands of D.
    Sol.)
    Statement showing Taxability of Gifts
    (For A.Y. 2009-10)
    Gift Reason & Taxability
    Elder Sister Rs.30,000 Relative – Not Taxable
    Daughter of her elder sister Rs.50,000 Not a Relative, but not exceeding Rs.50,000 – Not Taxable
    Friends on occasion of her marriage Rs.125000 Special Occasion – Not Taxable
    Watch Rs.60,000 Gift-in-kind – Not Taxable
    Grandfather Rs.60,000 Relative – Not Taxable (lineal ascendant)


    Taxability of Family Pension

    1. Taxable u/h Income from Other Sources.
    2. Deduction u/s-57: Least of following: -

      1. 1/3rd of Gross Pension, or
      2. Rs.15,000.

    3. Exemption u/s-10

      1. Family pension received by family members of Army Personnel who are recipient of gallantry awards (i.e., Param Vir Chakra, Maha Vir Chakra, Vir Chakra etc.) (Pension received by him is also exempt)
      2. Family pension received by the widow, children or nominated heirs of a member of the armed forces (including para-military forces) whose death has occurred in the course of operational duties.




    Loss on Maintaining Camels for Races

        • Cannot be carried forwarded. However, it can be set-off u/s-70 and71.
        • However, U/s-74A, B/F unabsorbed loss from activity of maintaining race horses can be carried forwarded for 4 assessment years.



    Q. A takes loan of 5,00,000 to invest in shares and receive dividend. Interest on Loan Rs.1,00,000. Discuss.
    Ans.

    • Section-14A: In computation of Total Income, the expenditure incurred in relation to income, which does not form part of Total Income, shall not be allowed as deduction.
    • Since Dividend is exempt u/s-10(34), and hence does not form part of total income. Therefore, interest not allowed as expenditure. (What treatment in Capital Gains?)



    Taxation of Dividend


    Section-10(34)Dividend referred in Section 115-O and Deemed Dividend u/s2(22)(a) to (d) is Exempt in hands of SH. Because Company pays Dividend Distribution Tax @ 15% (+10%+3%) on it


    Section-2(22) – Deemed Dividend
    Dividend Includes: -

    1. Distribution by Company to SH All or any part of Assets.
    2. Distribution to : -

      • Eq/Pref. SH → Debentures, Debenture-stock, or Deposit Certificates
      • Pref. SH → Bonus Shares



    1. Any Distribution to Shareholders on Liquidation to ESH
    2. Any Distribution to Shareholders on Reduction of Capital

      • Exception Buy back u/s77A and In Demerger.

    3. Dividend u/s-2(22)(e) is Taxable in the hands of Shareholders, So No DDT on it by Company. Any Advance or Loan by a Public are NOT Substantially interested to the extent the company possess Accumulated Profits to: -

      • Beneficial Owner having 10% or more Voting Right of the Company.
      • A concern in which above person is Member or Partner and having Substantial interest.
      • To any person on before of or for individual benefit of such shareholder.

        • Beneficial Ownership, “Membership/Partnership” in concern to be checked On the Date of Loan & Advance and not after.
        • Substantial Interest in Firm – At any time during the P.Y,
        • Section-2(22)(e) is applicable even if loan is repaid.
        • Arati Debi – If Loan is more than Accumulated Profit, then the entire loan will be deemed dividend u/s2(22)(e).
        • Accumulated profits shall include all profits upto the date on which Loans & Advance is given to the Shareholder.
        • G. NarasimhanFor the purpose of Section-2(22), Accumulated Profits get reduced by deemed dividend u/s 2(22)(e).
        • Exceptions to Section-2(22)(e): -




        • Not deemed dividend if lending money is the substantial part (i.e., >50% of PGBP) of the business of the company and loan made in the ordinary course of business.
        • No DDT on Dividend payable/paid which was set-off by the company against the loan/or pat of loan which was treated as dividend u/s2(22)(e).

    Section 2(22)(a) to (d)
    (Applicable on all companies)
    To the extent of Accumulated Profits* (whether capitalised or not)
    [* – Deemed Dividend u/s2(22)(e)]
    Section 2(22)(e)
    (Applicable on Closely Held Companies)
    Accumulated Profits (Not Capitalised)




    Section-115-O – Tax on distributed profit of Domestic Companies

    • Dividend Distribution Tax @ 15% (+10%+3%) = 16.995%.
    • To be paid within 14 Days of Dividend Declared/Distributed/Paid,
    • On Interim/Final/ Deemed Dividend u/s2(22)(a) to (d) or Otherwise,
    • Whether out of Current or Accumulated Profits or out of Share Capital.

      • No DDT (if Dividend from Current Profits) for Undertakings engaged in developing or developing, operating & maintaining SEZ + Exempt in the hands of Shareholders.
      • Dividend u/s-2(22)(e) and Dividend from Foreign Company is taxable in the hands of Shareholds therefore No DDT payable by the company.
      • No Deduction for Dividend & CDT as Business Expenses to company.
      • Consequences for non-payment of DDT



        • U/s 115P → Interest @ 1% p.m. or part thereof.
        • U/s 115Q → Assessee in default.
        • U/s 271C → “Penalty = Tax”

    and
    U/s 276B → Rigorous imprisonment from 3 months to 7 years.


    Accumulated Profits include
    For 2(22)(c) – All profits upto the date of liquidation. In case liquidation is consequent to Compulsory Acquisition by Govt. then Profits upto date of liquidation except 3 successive P.Y.
    For Others – All profits upto the date of distribution/payment.


    Section-46A – Capital Gain on Buy-Back of Shares
    Consideration Received – Cost of acquisition = Capital Gains.


    Deferred Dividend taxable when declared.
    Dividend from AbroadGross Dividend is Taxable (and not net).


    Taxation of Political Parties


    Section-13A – Following incomes not included in Total Income of Political Party: -

            1. Income chargeable u/h: -

              1. House Property,
              2. Other Sources
              3. Capital Gains

            2. Voluntary Contribution: Provided that: -

                • Books of A/cs and other documents are maintained as would enable AO to properly deduce the income.
                • Records of (Name & Address) of personif Voluntary Contribution exceeds Rs.20,000.
                • Accounts audited by Accountant.
                • No Exemption if Report u/s29C of the Representation of People Act for a F.Y. is not furnished.




    Example: Income of Political Party for A.Y. 2009-10
    Rent of Property (Exempt u/s-13A) Nil
    Interest on Deposits (Exempt u/s-13A) Nil
    Contributions exceeding Rs.20,000 (Names of persons making contribution not available) 21,00,000
    Contributions not exceeding Rs.20,000 Nil
    Net Profit of Cafeteria run in Delhi is assessable as Business Income 3,00,000
    Total Income 24,00,000


    Taxation of Units


    Dividend Incomefrom units of UTI or Mutual Fund or Administrator of Specified Undertaking or Specified Company is Exempt u/s-10 in hands of unit-holder.


    Sectiob-115-R – Company shall pay tax: -
    Money Market Mutual Fund or Liquid Fund:
    • 25% of Income Distributed.
    Other than MMMF or Liquid Fund
    • 12.5% of Income Distributed to Individual/HUF.
    • 20% for others.
    Payment of Tax within 14 days of Distribution/Payment. On or before 15th September file a “Statement of Income Distributed during P.Y.” in prescribed form.
    Note:Equity Oriented Mutual Fund Exempt u/s10 + Exempt u/s-115-R.


    Equity Oriented Fund means: -

    1. Units Scheme, 1964 made by UTI (US-64), and
    2. Such Fund where more than 65% of Investible Funds is invested in Equity Shares of Domestic Companies. (65% = Annual Average of monthly average of opening and closing figures).



    Capital Gains on Units

    1. Units of US-64

      • STCG/LTCG → Exempt u/s 10(33)
      • If held as Stock-in-tradeTaxable u/h PGBP.

    2. Units of Equity Oriented Fund


    • LTCG → Exempt u/s 10(33) if sold through Stock Exchange & STT paid.
    • LTCG → Exempt u/s 10(33) if Sold to Mutual Fund and STT paid.
    • STCG → Taxable @ 15% u/s 111A where: -

      • Units sold through Stock Exchange & STT paid.
      • Units sold to Mutual Fund and STT paid.



    1. Units other than Equity Oriented Fund


        • STCG → Taxable at Normal Rates.
        • LTCG → At rates specified in Section-112 (20% or 10% as the case may be)



    Dividend Stripping


    Section-94(7) –Where any person: -

        1. Acquires Securities/Units 3 months before Record Date, and
        2. Sells Securities within 3 months/Units within 9 months of Record Date, and
        3. Receives any Dividend whichis Exempt u/s10(34) or 10(35)

    Then, On Such Sale/Purchase: -

          • Dividend → Exempt u/s10(34) or 10(35)
          • Loss → Upto Dividend Income Ignore, Remaining Loss allowed.



    (1), (2), (3) must be fulfilled to attract this Section. E.g., If Dividend received is not exempt then this Section shall not be applicable. Section-94(7) is applicable even if shares are purchased as Stock-in-trade.


    Example:
    Mr. X buys 1000 shares of Reliance @ Rs.300 per share on 30.6.2007. Record Date 1.8.2007. Mr. X receives dividend Rs.20,000 which is exempt u/s10(34). Mr. X sells the shares on 30.9.2007 @ Rs.270 per share.
    Sol.) Dividend Exempt u/s 10(34) = Rs.20,000
    Capital Gains (2,70,000 – 3,00,000) = – Rs.30,000
    Out of STCL of Rs.30,000, loss of Rs.20,000 shall not be allowed to be set-off or carry forward as per the provisions of Section-94(7).






    Bonus Stripping
    (Not Applicable to Shares)
    Section-94(8)

    1. If Units acquired 3 months before Record Date of Bonus, and
    2. Bonus Units allotted, and
    3. Original Units sold within 9 months.

      • Any Loss on Sale of Original Units shall be ignored, and
      • Such ignored Loss shall be the COA of “Bonus Units held* by him on the Date of Sale/Transfer of Original Units.”

        • On the date of Sale/Transfer of Original Units he must hold at least 1 Bonus Unit.
        • Section-94(8) is applicable even if Units are held as Stock-in-trade.



  5. #15
    anand
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    PROBLEMS ON INCOME FROM OTHER SOURCES

    Q-1. Shri Nihar furnishes the following particulars of his income for the previous year ending 31st March, 2010 :

    (1) Dividend from a tea company Rs. 2,500 (Gross) (60% of the income of the company is agricultural income).
    (2) Amount won from a horse race Rs. 2,500.
    (3) Interim Dividend declared by the directors of K Co. Ltd., in March 2010 but the payment was received in May 2010 for which dividend warrants were despatched in April 2010. Amount received as dividends was Rs. 8,000.
    (4) Dividend declared by P Co. Ltd., in January 2010. Dividend warrants were dispatched in April, 2010 and the payment was received in June, 2010 amounting to Rs. 4,475 (Net).
    (5) Winning from a lottery Rs. 62,500.
    (6) Interest on Post Office Cumulative Time Deposit Rs. 1,000.
    (7) Interest received on deposit with a firm Rs. 5,382.
    (8) Dividend received from a Co-operative Society Rs. 500.
    (9) Income from Non-agricultural land Rs. 1,500.

    Shri Swami Prasad claims the following expenses:
    Bank Commission Rs. 100 for collecting dividends from companies; interest on loan taken to purchase shares in tea company Rs. 800; and expenses incurred for purchasing lottery tickets Rs.2,000.
    Compute the taxable income of Shri Swami Prasad under the head 'Income from Other Sources' for the Assessment Year 2010-11. Ans. Rs. 72980.

    Q-2. From the following particulars of Shri Amber Siraj for the assessment year 2010-2011, compute his taxable income under the head 'Income from Other Sources' :

    (1) Ground Rent Rs. 5,000.
    (2) Following interest received:
    (a) On Fixed Deposit from Bank Rs. 400;
    (b) From Post Office Savings Bank Rs. 300;
    (c) Interest on deposit with a firm Rs. 600.
    (3) Income from sub-letting of house taken on rent Rs. 5,000. Rent paid Rs. 3,000.
    (4) Received dividend of Rs. 3,580 on the shares of an Indian Company.
    On 1-6-2009 Shri Maheshwari took a loan of Rs. 10,000 @ 12% per annum to purchase the shares of another Indian Company. He purchased shares of the face value of Rs. 8,000 for Rs. 8,000 and invested Rs.
    2,000 in his business. No dividend was received on these shares during the year.
    He paid bank commission @ 1 % for collecting dividend and spent Rs. 400 for collecting the rent of the house
    Ans. Rs. 7,600.

    Hints: 1. Interest on deposit with a firm has not been grossed up as the amount is less than Rs. 5,000.
    2. Rent paid and expenses incurred in collecting the rent will be allowed as expenditure from rent received.

    Q-3. Mr. Waseem has the following investments in the previous year ended on 31st March, 2010 :
    (1) Rs. 11,000, 10% Central Govt. Securities.
    (2) Rs. 32,000, 10% Tax-free Commercial Securities.
    (3) Rs. 3,200 received as interest on Tax-free Public Ltd. Company Securities.
    (4) Rs. 4,000 received as interest on U.P. Govt. Securities.
    (5) Rs. 3,600 received as interest on Tax-free Company Securities (Listed).
    (6) Rs. 30,000, 13.5% Securities of Cement Company (Unlisted).
    (7) Rs. 35,000, 11% Securities of a Paper Mill Company (Listed).
    (8) Rs. 10,000, 15% Jaipur Municipal Corporation Bonds, received from his father on 1st April, 2009.
    (9) Rs. 10,000, 11% (Compound Interest) Savings Certificates purchased on 31st March, 2008 maturing after 6 years.

    For purchasing Cement Company's Securities he took a loan of Rs. 25,000 @ 12% p.a. This loan was taken from his friend in Bahrain. The interest has been paid in Bahrain but no deduction of tax at source-is made.
    The Bank charged 1.5% commission on gross interest as collection charges.
    Interest on all securities is payable half-yearly on 1st July and 1st January each year except on Savings Certificates which is due, but not payable yearly.
    Find out his taxable income from interest on securities under the head 'Income from Other Sources' for the Assessment Year 2010-2011.

    Ans. Interest on Securities Rs. 26447
    Hints: 1. No deduction will be allowed for interest on loan paid in Bahrain as tax has not been deducted at source.
    2. No T.D.S. is done now on Govt. Securities.
    3. On Savings Certificates, interest is dlilculated for 1st year (i.e., Prev. Year 2008-09) as under: 10,000 x 11
    + 100 = Rs. 1,100, and for 2nd year ii.e., Prevo Year 2009-10) as under: On Rs. 10,000 + 1,100 = Rs.
    11,100. 11,100 x 11 + 100 = Rs. 1,221.
    4. Bank collection charges are not allowed on Savings Certificates as interest on them has not actually been
    received; but is due every year and will be paid only on maturity.

    Q-4. From the following particulars of Mr.Azeem for the assessment year 2010-2011, compute his Income from other Sources :

    (1) He holds the following securities and shares:
    (a) 2,000 Equity Shares of Rs. 10 each of Paras Ltd.
    (b) Rs. 40,000, 12% Uttar Pradesh Government Securities.
    (c) Rs. 1,000, 10% Preference Shares of Rs. 100 each of Madhu Ltd.
    Paras Ltd. declared 10% equity dividend, but the cheque was not received as yet. Other interest and dividends were, however, received. He had borrowed Rs. 1,00,000 @ 12% per annum interest for the purpose of making all the above investments. He also paid 1 % collection charges on gross income.
    (2) Dr. Azeem had set-up a factory with building, plant, machinery, furniture, etc. However, he decided to give it on hire at Rs. 2,000 per month. During the year he spent Rs. 2,000 for repairs and Rs. 500 for insurance. The depreciation allowable is Rs. 5,000. He had borrowed Rs. 30,000 against mortgage of these assets and paid Rs. 3,000 interest thereon. The amount was spent for the marriage of his daughter.

    Ans. Rs. 18,252. .

    Q-5. Mr. Siddarth Mehra has the following investments in the previous year ended on 31st March, 2010 :

    (i) Rs. 750 received as interest on Post Office Recurring Deposit.
    (ii) Rs. 25,000, 12% Haryana State Electricity Board Bonds.
    (iii) Rs. 20,000, 13% Allahabad Development Bonds were issued
    (iv) Family Pension Rs. 24,000.
    (v) Rs. 1,747 received interest on tax-free Secured Securities of Chits India (P) Ltd. Co.
    (vi) Rs. 30,000, 10% (Tax-free) Listed Debentures of a Company.
    (vii) Rs. 40,000, 12% Debentures of Goa Development Authority .
    He took a loan to purchase Goa Development Authority Debentures Rs. 20,000 @ 11 % on which interest has become due but not yet paid in the previous year. Bank charged 2% as collection charges on realisation of interest on all securities. Interest being payable in each case on 1st January and 1st July.
    Calculate his income from interest on securities under the head 'Income from Other Sources'.

    Ans. Rs. 13192

    Q-6. Miss Sana, a resident individual, submits the following particulars of his income for the previous year 2009-10 : Rs.
    (1) Dividend received from an Indian Company AB Ltd. on shares purchased in January, 2003 17,900
    (2) Dividend (net) received from a foreign company after deduction of Rs. 4,500 as tax at source.
    Nothing has been paid to the Indian Government out of the amount of tax deducted at source 19,500
    (3) Interest paid on outstanding loan of Rs 80,000 taken @ 15% p.a. to purchase the shares of AB Ltd. 12,000
    (4) Collection charges paid to collect the dividend from foreign company 350
    (5) Rent from a building let out along with plant, machinery and furniture 50,000
    (6) Depreciation allowable on the above assets 15,000
    (7) Five Insurance Premium paid:
    On Building 800
    On Plant & Machinery 500
    On Furniture 200
    (8) Repairs of Building 500
    (9) Winnings from horse race (Gross) 7,000
    Compute the taxable income from other sources for the relevant assessment year.

    Ans. Rs. 59,150.

    Hint: Dividend from AB Ltd. is exempt, hence interest on loan taken for purchasing the shares of AB Ltd. is not deductible.

    Q-7. Mr. Ankit, a resident individual, submits the following particulars of his income for the year ended 31st March, 2010 :
    (1) Royalty from a coal mine Rs. 20,000.
    (2) Agricultural income in Pakistan Rs. 15,000.
    (3) Salary for a part-time job with a firm Rs. 21,000.
    (4) Salary as Member of Parliament Rs. 36,000.
    (5) Daily Allowance as M.P. Rs. 15,000.
    (6) His residential house has been taken on a rent of Rs. 1,000 p.m., half of which he has sub-let at Rs. 1,200 p.m.
    (7) Dividend received from a co-operative society Rs. 5,000.
    (8) He has incurred the following expenses:
    (i) Paid collection charges Rs. 100 for collecting dividends. (ii) Rs. 3,000 spent for earning and collecting royalty income.
    Compute Mr. X's income from other sources for the assessment year 2010-2011

    Ans. Rs. 81,300.

    Hints:
    1. Since the question has asked to compute Income from Other Sources the salary from part-time job which is taxable under the head 'Salaries' has not been shown here.
    2. Salary as M.P. is not taxable under the head 'Salaries'. He is not an employee of the Government. Hence, it is taxable under the head 'Other Sources'.
    3. Daily allowance as M.P. is not taxable.
    4. Dividend received from a co-operative society is not grossed up.

    Q-8. Miss Shivangi, a resident individual, submits the following particulars of her income from other sources for the year ended 31st March, 2010 :
    1. Family pension from the Government of Uttar Pradesh Rs. 42,000. Exp on the collection of family pension---700 p.m.
    2. She has written a book for schools on which she gets a royalty of Rs. 17,000 from the publisher. She has spent Rs. 3,000 on books, stationery, typing, etc. during the previous 'year.
    3. She has received remuneration for doing invigilation in Examination Rs. 1,000.
    4. Remuneration for acting as examiner Rs. 1,800. She incurred Rs. 75 on postage, etc. in connection with the examination work, which were reimbursed by the University.
    5. Cash worth Rs. 1,00,000 was found in the previous year in her bank locker, the source of which could not be explained by her.
    6. Interest credited to her savings bank account in Allahabad Bank Rs. 800.
    7. Interest credited to her cumulative time deposit account in post office was Rs. 2,000.
    Compute her taxable income from other sources for the assessment year 2010-2011.

    Ans. Rs. 1,45,600. (Int. on Cumulative Time Deposit Ale in Post Office is exempt.)


    Q.9. The following incomes were received by Mr. Manish during the financial year 2009-09 :
    Director's Fees 6000
    Income from Agricultural land (in Pakistan) 40000
    Interest from Post-office Saving Bank A/c 1500
    Interest on Fixed Deposit in SBI 1800
    Winning from lottery (Net) 35000
    Crossword Puzzles 2500
    Royalty on Books 20000
    (Expenses in this connection Rs. 4,000)
    Compute his income from other sources.

    Ans. Rs. 1,16,300.

    Q.10. Shri Arshad is a political leader. The particulars of his income for the F. Y. 2009-09 are as follows:
    (i) Received Rs. 12,000 @ Rs. 1,000 p. m. as family pension from the Central Government.
    (ii) Received a sum of Rs. 2,000 for delivering lectures, in favour of a candidate in municipal election.
    (iii) Received a sum of Rs. 3,000 as royalty from Friends & Company to whom he has given right to publish his book on Political Science.
    (iv) He has some machines which he gives on rent. The rent received in this respect amounts to Rs. 15,500. Repair charges on machines are Rs. 1,000.
    (v) Received Rs. 5,600 as rent of agricultural land given to a kiln contractor for the kiln.
    (vi) Interest received on Post-office savings bank account Rs. 800.
    (vii) Remuneration received for radio talk Rs. 1,000.
    Compute his taxable income under the head "Income from other sources" for the Assessment Year 2010- 2011.
    Ans. Rs. 34,100.

    Q-11
    Mr. Hammad is a professor and a resident of India. He submits before you the following income for computing his income under the head "income from other sources" for the assessement year 2010- 2011:

    1. Salary Rs. 15,600 per month from Vaishnaw Commerce College.
    2. He is the author of a text book 'Book-keeping and Accountancy' which fetched him a gross royalty of Rs. 20,000 in lump-sum and which is in consideration of the transfer of copyright. He claims the following deductions from the amount:
    (i) Salary to a clerk who collects for him necessary data and goes through the final proofreading Rs.3,000.
    (ii) Purchased books worth Rs. 400 in connection with the revision of the book.
    (iii) Telephone expenses of Rs. 1,600 attributed to the publication and sale of his book and other matters in connection with the printing of the new edition of the book.
    3. Income from articles which were published in 'Yojna' Rs. 4,000.
    4. He lives in a rented house paying rent @ Rs. 3,000 p.m. He has sub-let 1/3 portion of the house on a rent of Rs. 1,500 per month. Dr. Tripathi has undertaken the liability of paying municipal taxes of Rs. 5,400 on the whole house and also the current repairs of the whole house amounting to Rs. 6,000.
    5. Dr. Pahwa received Rs. 60 per lecture delivered at Ambedkar institute during the previous year. He delivered 20 lectures.
    6. He is an examiner in university. This source gave him a remuneration of Rs. 2,600. He incurred Rs. 60 on postage etc. in connection with the examination work which were reimbursed by the university. He received Rs. 400 as remuneration for invigilation work in the university examinations.
    7. His other incomes were :
    (i) Wins from card games and betting Rs. 6,500. (ii) Wins from chess Rs. 1,000.
    (iii) Received interest on Govt. of Nepal Bonds Rs. 1,500.
    8. Received Rs. 2,000 as dividend from a Co. in which the public a substantially interested.
    9. Income from agricultural land situated at Ujjain Rs. 7,000.
    10. Rs. 800 per month scholarship for research work from D.G.C. (8.21)
    Ans. Rs. 34,400
    .
    Q12. Miss Shubhangi, a resident individual, submits the following particulars of income for the previous year ending March 31,2010 :
    Dividend from REC Intemational Ltd. (Gross) Rs. 4,800; Dividend from Sundaram Finance Ltd. Rs. 2,700; interest paid on capital borrowed for the purpose of investment in shares of Sundaram Finance Ltd. Rs. 4,200; collection charges in respect of dividend Rs. 460. Winnings from lottery net amount Rs. 69,100. Tax deducted at source Rs. 30,900. Winnings from card games Rs. 23,500. Interest on securities issued by the Govemment of Singapore Rs. 20,570. Determine the income chargeable under the head 'Income from other sources' for the assessment year 2010-2011.

    Ans. Rs. 1,44,070.

    Q-13 Shri Anuj had the following investment for the year ending on 31st March, 2010 :
    (i) 8% Tax-free Govt. of India loan Rs. 15,000;
    (ii) 9.5% Secured debentures of a cotton mills Rs. 10,000;
    (iii) 12% Tax-free secured debenture of Raymond Woollen Mills Ltd. listed in Delhi Stock Exchange Rs.10,000;
    (iv) 11% Debentures of Reliance Textile Industry Rs. 8,000.
    He took a loan of Rs. 15,000 @ 7% p. a. rate of interest to purchase debentures. Collection charges spent to collect the taxable interest this year amounted to Rs. 30. The interest is due on 1st January and 1st July on the securities.
    Compute taxable income of the head 'Income from other sources' for the assessment year 2010-2011.
    Ans. Rs. 2,083.

    Q-14. Miss Priya submits the following particulars of her income from other sources for the year ended 31st March, 2010 :

    (a) Family pension received from the Govemment of Karnataka Rs. 30,000.
    (b) Royalty received from the publisher Rs. 50,000. She spent Rs. 5,000 on books, stationery, typing etc.
    during the year.
    (c) Winning from lotteries (Net) Rs. 56000
    (d) Winning from horse race (Net) Rs. 28000
    (e) Interest on tax-free debentures of Mysore Electric Company (listed) Rs. 7,200.
    (d) Interest on 10% tax-free bonds of the Govt. of India Rs. 10,000.
    (g) Dividend (Net) Rs. 8,000, received from a foreign company. Nothing has been paid to the Government
    out of tax deducted at source.
    Compute income from other sources of Mrs. Rekha for the A.Y. 2010-2011.

    Ans. Rs. 2,01,000.

    Q-15. Mr. Shivam has the following investments in the previous year ended 31st March, 2010 :
    (i) Rs. 11,000, 10% Karanataka State Govt. Loan.
    (ii) Rs. 30,000, 13.5% Debentures LMT Ltd. (listed).
    (iii) Rs. 35,000, 11% Securities of Sugar Mill Co. (not listed).
    (iv) Rs. 32,000, 10% Tax-free commercial securities (listed).
    (v) Rs. 3,580, received as interest on Tamil Nadu Govt. securities.
    (vi) Rs. 3,600, received as interest on the securities of a Paper Mill Company (not listed).
    (vii) Rs. 4,500 received as interest on securities of Textile Company (listed).
    Interest on all securities is payable on 30th June and 31st December. The bank charged 1.5% commission on Net realisation of interest as collection charges.
    He was also a director in a company from which he received Rs. 3,000 as directors' fees. His other incomes are:

    (i) Winning from lottery Rs. 25,000.
    (ii) Income from agriculture in Sri Lanka Rs. 10,000.
    (iii) Winning from Horse race Rs. 15,000.
    (iv) Interest on Post Office Saving Bank Account Rs. 2,000.
    Find out his taxable income from other sources for the assessment year 2010-2011.
    Ans. Rs. 74789.

    Q-16. Following are the particulars of income of Miss Mani : Rs.
    (i) Interest received on Government Securities 9,000
    (ii) Dividend received from a Foreign Company 8,000
    (iii) Amount received from winnings of lottery 66,500
    (iv) Winning from wager 25,000
    (v) Income from letting on hire the private car (Letting on hire of car is not the business of Smt. Kiran) 40,000
    (vi) Family pension (per month) 1,500
    She incurred the following expenditures :
    (i) Interest paid on loan taken to purchases shares and securities Rs. 7,000.
    (ii) (ii) Bank commission paid @ 2% for collecting dividend and interests.
    (iii) Spent Rs. 1,500 on purchasing lottery tickets.
    (iv) Expenses of the private car for the period during which it was let out Rs. 12,000 (including depreciation).
    Compute the income of Miss Mani under the head 'Income from Other Sources' for the assessment year 2010-2011.

    Ans. Rs. 1,69,660.


    Q-17. From the following particulars submitted by Mr. Saurabh Bhandula, resident individual, compute his income from salary and other sources for the assessment year 2010-2011 :
    1. He is a Managing Director of a company from which he received Rs. 14,000 p.m. as salary, Rs. 10,000 as entertainment allowance, and Rs. 25,000 as travelling allowance. He spent Rs. 20,000 on travelling for official purposes. He has also been provided with the facility of small car for his personal as well as official use. The expenses for personal use are borne by Mr. A himself and he himself drives the car.
    2. He is also a director in another company from which he received Rs. 28,000 as Director's fee.
    3. His income from agricultural land in Nepal Rs. 12,000. Income from a plot of land lying isolated which has been let at Rs. 1,000 per month for being used as Soft Coke Sale Depot.
    4. His investments were as under:
    (a) Rs. 10,000, 10% Debentures of a company.
    (b) Rs. 10,000, 12% Debentures of a Co-operative Society.
    (c) Rs. 10,000, 12% Preference Shares of a domestic company. Dividend received.
    (d) Rs. 15,000, advance outstanding with a firm on 1st April, 2009 @ 12% p.a. interest.

    Ans. Income from Salary Rs. 183000; Income from Other Sources Rs. 56,000.

    Q-18. Mr. Siddarth Khanna has the following investments in the previous year ended on 31st March, 2010
    (i) Rs. 750 received as interest on Post Office Recurring Deposit.
    (ii) Rs. 25,000, 12% Haryana State Electricity Board Bonds.
    (iii) Rs. 20,000, 13% Allahabad Development Bonds were issued directly from company on 1st June 2009.
    (iv) Family Pension Rs. 24,000.
    (v) Rs. 1,747 received interest on tax-free Secured Securities of Chits India (P) Ltd. Co.
    (vi) Rs. 30,000, 10% (Tax-free) Listed Debentures of a Company. Sold on 02 January 2010
    (vii) Purchased Rs. 40,000, 12% Debentures of Goa Development Authority from open market on 1st June 2009.
    He took a loan to purchase Goa Development Authority Debentures Rs. 20,000 @ 11 % on which interest has become due but not yet paid in the previous year. Bank charged 2% as collection charges on realisation of interest on all securities. Interest being payable in each case on 1st January and 1st July.
    Calculate his income from interest on securities under the head 'Income from Other Sources'.

    Ans. Rs. 12495
    PROBLEMS ON DEEMED DIVIDEND (Total Problems 14)

    PROBLEM 1.

    ABC Ltd. has current profits of Rs. 150 lakhs and the company has distributed dividends of Rs.55 lakhs. Compute income tax liability of the company and also additional income tax payable by the company. Also compute tax payable by the shareholder.

    Answer
    = Income tax liability Rs. 50,98,500 and additional income tax liability Rs.9,34,730. Tax liability of shareholder is Nil.

    PROBLEM 2.
    ABC Ltd a domestic company has aocumulated profits of Rs. 225 lakhs has distributed dividends of Rs.12 lakhs and one of the share holders Mr. Sumit Monga has received dividend of Rs. 1 lakh.
    Compute tax payable by the shareholder and also additional income tax payable by the company.

    Answer = Tax payable by the shareholder Nil; Additional Income tax payable by the company Rs.2,03,940

    PROBLEM 3.
    Mr. Varun Talwar is holding 100 shares of ABC Ltd. which were purchased by him on 01.10.1978 @ Rs.10/- per share. Market value of one share on 01.04.1981 was Rs. 25/- and total number of shares issued by the company is 10,000. The. company goes into liquidation on 01.10.2010 and has net distributable amount of Rs. 25 lakhs after discharging all the liabilities including any additional income tax under section 1 15-O. Out of Rs. 25 lakhs, Rs. 10 lakhs is accumulated profits.
    Compute dividends in the hands of Mr. Yarun Talwar and also capital gains.

    Answer = Dividend under section 1(22)( c) Rs.10,000 and Long term capital loss: Rs.800

    PROBLEM 4 ..
    ABC Ltd. a closely-held company has bonus share capital of Rs.10 lakhs, General Reserves of Rs.6 lakhs and current profits' of Rs.2 lakhs. The company has given a loan of Rs 9 lakhs to one of the shareholders, who is beneficial owner of equity shares holding 10% of the voting power.
    Compute amount of dividend in the hands of shareholder.

    Answer = Rs.8,00000

    PROBLEM 5.
    Mr. Rohit Aggarwal is beneficial owner of equity shares holding 10% of the voting power in ABC Ltd, a closely held company. He is partner in a partnership firm XY and has 20% share in the firm. The company has given a loan of Rs.5 lakhs to the firm and company's accumulated profits are Rs 6 lakhs.
    Compute amount of dividend in the hands of shareholder and the firm.

    Answer = Dividend in the hands of Shareholder: Nil; dividend in the hands of Firm: Rs.5,00000

    PROBLEM 6.
    Accumulated profits of ABC Ltd, a closely-held company is 3 lakhs on 01.07.2010. A loan of Rs. 2 lakhs was advanced to Ranjeet Sharma holding 13% shares on 01.07.2010 and a loan of Rs. 1.5 lakhs was advanced to Saurabh Gupta on 0/./0.2010 holding / I % shares.
    Compute amount of dividend in the hands of Mr. Ranjeet Sharma and Mr. Saurabh Gupta.

    Answer ~ Mr. Ranjeet Sharma: Rs. 2,00,000: Mr. Saurabh Gupta: Rs. 100000

    PROBLEM 7.

    Mr. Prince Manchanda is holding 10% equity shares in ABC Ltd, a closely-held company and he has taken a loan of 3 lakhs on 01.10.2010. The loan was repaid after ten days. The company has accumulated profits of 101akhs.
    Compute amount of dividends in the hands of Mr. Prince Manchanda.

    Answer = RS.300000

    PROBLEMS.
    A trade deposit of 4 lakhs was given by a closely held company to one of the shareholders who is holding 10% of the voting power and it was Subsequently adjusted against supply of goods.
    Compute amount of dividend in the hands of shareholder.

    Answer = Rs.4.00.000

    PROBLEM 9.

    An Hindu Undivided Family, through its Karta Mr. Lokesh Kumar, is a shareholder of a closely held company and holds 12% shares in the company. The Company has accumulated profits of Rs.10 lakhs, The company gives a loan of Rs. 3,50,000 to the Hindu Undivided Family.
    Compute amount of dividend.

    Answer=: Nil

    PROBLEM 10.
    ABC Ltd, is a company in which public are not substantially interested. The company has Bonus share Capital of Rs. 5 lakh and General Reserve of Rs. 7 Iakh and the Company has given a loan of Rs. 8 lakh to one of the shareholders who is holding 10% of the voting power.
    Compute amount of dividend in the hands of shareholder and also his tax liability.

    Answer =:
    Dividend Rs.7,00,000; Tax Liability Rs117420

    ROBLEM 11

    There is a partnership firm XV. Mr. Suresh Kumar is holding 100/0 of the voting power of the Company and he has 20% share in profits of the firm. A loan of Rs.3 Iakh has been given to this partnership firm by the any having General Reserve of Rs. 10 lakhs. Compute amount of dividend and discuss its taxability.

    Answer =:
    Dividend Rs.300000; Tax Liability Rs.92,700

    PROBLEM 12.

    If a closely held company has accumulated profits of Rs. 10 /akhs. A loan of Rs. 7 lakh was given to one of shareholders who is holding 10% of voting power and subsequently loan of Rs. 6 lakh was given to another similar shareholder.
    Compute amount of dividend and discuss its taxability.

    Answer = 1st shareholder Dividend: Rs.7,OO,OOO; Tax Liability: Rs.I,17,420; 2nd shareholder Dividend:
    Rs.300000; Tax Liability: Rs.14,420

    PROBLEM 13.
    Mr. Ankush Jain holds shares carrying 25% of voting power in a-domestic company in which public are not substantially interested. On 01.09.2010, he obtained a loan of Rs. 5 lakhs @ 14% p.a. from the company, as on that date the company had accumulated profit of Rs.4 lakhs.
    Explain the tax implication in the hands of the company and also in the hands of shareholder.

    Answer = Dividends in the hands of the shareholder shall be Rs. 400000

    PROBLEM 14.

    Mr. Vibhor Gupta is holding 12% equity shares in ABC Ltd., a company in which public are not substantially interested. Mr. Vibhor Gupta needs Rs.7,00000 to purchase a car for his personal use. He can either borrow this money at an interest rate of II % p.a. from ABC Ltd. or from a finance company @ 15% p.a. Business of ABC Ltd. is not money lending but it has sufficient accumulated profits to advance the requisite loan. Suggest from tax point of view, whether he should borrow from ABC Ltd. or the finance company?

    Answer = It is beneficial to take loan from the finance company. (if the loan is taken from ABC Ltd., total amount payable is Rs. l ,94,420 and if loan is taken from finance company, amount payable is Rs. l ,05,000).


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    Chapter - 11

    Deductions to be made in Computing Total Income

    Part 1

    The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as "Gross Total Income".

    In computing the total income of an assessee, certain deductions are permissible under sections 80C to 80U from Gross Total Income.


    These deductions are however
    not allowed from the following incomes although these incomes are part of Gross Total Income:


    (a) Long-term capital gains.
    (b) Short-term capital gain covered under section 111A.
    (c) Winnings of lotteries, races, etc.
    (d) Incomes of a Non resident taxable at special rates.


    1. Basic rules of deductions
    [Sections 80A/80AB/80AC]

    1. Deductions cannot exceed Gross Total Income.
    2. Deduction not allowed to members if allowed to AOP/BOI.
    3. Deduction should be claimed by assessee.
    4. Assessee's duty to place relevant material.
    5. Deduction to be allowed in respect of net income included in Gross Total Income.
    6. Benefits of certain deductions not to be allowed in some cases where return is not filed within the specified time limit.
    2. Deduction in respect of Life Insurance Premium, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
    [Section 80C]

    Deduction allowed only to: (i) an Individual; or

    (ii) a Hindu Undivided Family.
    Amount of Deduction: Amount invested or Rs. 1,00,000 whichever is less
    Amount to be invested in following:
    (i) any sum paid by an individual to effect or to keep in force an insurance on the life of:
    (a) an individual himself,
    (b) his/her spouse, and
    (c) any child of such individual.
    In the case of Hindu Undivided Family the premium should be paid on the life of any member of the family.
    (ii) any payment made by the individual only to effect or keep in force a contract of a non-commutable deferred annuity on the life of: (a) an individual himself, (b) his/her spouse, and (c) any child of such individual;
    (iii) any contribution to mutual fund specifies u/d 10(23D)
    (iv) any contribution by the employee towards a statutory provident fund or recognised provident fund;
    (v) any contribution to a public provident fund;
    (vi) any contribution by an employee to an approved superannuation fund;
    (vii) any subscription to NSS;
    (viii) any subscription to National Savings Certificates;
    (ix) any contribution in the ULIP;
    (x) any sum paid by an individualas tuition fees provided following conditions are satisfied:
    (1) Such sum should have been paid as tuition fees excluding any payment towards development fees or donation or payment of similar nature.
    (2) It should have been paid at the time of admission or thereafter.
    (3) It is paid to any university, college, school or other educational institution situated within India.
    (4) It is paid for the purpose of full-time education.
    (5) It is paid for any two children of such individual.
    (xi) any payment for purchase or construction of a residential house property or repayment of loan taken for the same (Principal amount only), the income from which is chargeable to tax under the head 'Income from house property'.
    (xii) any sum deposited in a term deposit for a fixed period of not less than 5 years with a scheduled bank;
    (xiii) any subscription to notified bonds of NABARD
    (xiv) deposit in senior citizen saving scheme. [w.r.e.f. A. Y. 2008-09]
    (xv) 5 year time deposit in Post Ofiice. [w.r.e.f. A. Y. 2008-09]

    Question 1
    : Compute the deduction allowed under section 80C and the net-tax payable by A from the following information submitted by him for the assessment year 2009-10:


    Rs.
    1. Gross Salary 3,40,000
    2. Royalty (Gross) 27,000
    3. Expenses allowable from royalty 5,000
    4. Interest on bank deposits 13,000
    5. LIP on his own life (sum assured Rs. 20,000) 6,000
    6. LIP on the life of his wife 2,000
    7. LIP on the life of his major son (not dependent on A) 2,500
    8. LIP on the life of dependent brother 2,000
    9. Contribution to a Recognised Provident Fund 20,000
    10. Amount deposited in PPF Account 15,000
    11. Contribution to ULIP 3,000
    12. Repayment of housing loan taken from LIC (principal amount Rs. 23,000
    and interest Rs. 40,000) 63,000

    13. Subscription to units of a Mutual fund notified u/s 10(23D) which will
    subscribe to eligible issue of capital 25,000

    14. Amount incurred on the education of:
    (a) Child X Rs. 14,000
    (b) Child Y Rs. 7,000
    (c) Child Z Rs. 5,000
    15. Term deposit for 5 years with a scheduled bank 20,000
    16. Five year time deposit in Post Office 15,000
    He had taken the loan from LIC for construction of a residential house property which was completed in 2006 and which is being utilised by A for his own residence.

    Question 2
    : R, who was born on 4-1-1941 submits the following information:



    Rs.
    1. Rent from house (per month) 25,000
    2. Municipal taxes paid during the previous year 20,000
    3. Long-term capital gains on sale of gold 60,000
    4. Interest on bank deposits 34,150
    5. Term deposit in a schedule bank for six years 20,000
    Compute the Total Income and tax liability of R for assessment year 2009-10.

    Question 3
    : M, has computed his Gross Total Income for the assessment year 2009-10 which amounted to Rs. 3,50,000. It includes Rs. 3,00,000 on account of long-term capital gain. He has deposited Rs. 70,000 in a PPF during the previous year. Compute the tax payable by M, assuming that (i) he is less than 65 years of age; (ii) more than 65 years of age.



    Question 4: Mrs. S who is resident in India provides the following information. Compute her taxable income for the assessment year 2009-10 and tax thereon.
    Rs.
    Gross salary 1,90,000
    Rent of house property 1,20,000
    Interest on bank deposits 14,000
    Deposit in PPF 30,000
    Tuition fee paid for 3 children @ 15,000 p.a. per child 45,000
    LIP on her life (sum assured Rs. 1,00,000) 25,000



    3. Deduction in respect of contribution to certain pension funds
    [Section80CCC]

    Persons Covered an individual assessee


    Essential conditions .
    - It is allowed in respect of any amount paid or depositedin the previous year by such individual to effect or keep in force a contract for any annuity plan of LIC or any other insurer for receiving pension from the fund set up by LIC or any other insurer referred to in section 10(23AAB).
    - The amount is paid out of his income chargeable to tax.


    Quantum of deduction: The whole of the amount paid or deposited or Rs. 1,00,000, whichever is less.

    4. Deduction in respect of contribution to pension scheme of Central Government or any other employer
    [Section 80CCD]

    Persons CoveredAn individual who is an employee.
    The deduction is allowed on account of—
    (1) any amount not exceeding 10% of salary of the previous year paid or deposited by the employee in his account under the notified pension scheme;
    (2) any amount contributed by the employer to such pension scheme not exceeding 10% of the salary of the employee.


    NOTE: The aggregate amount of deduction under section 80C, section 80CCC and section 80CCD shall not, in any case, exceed Rs. 1,00,000. [Section 80CCE]


    5. Deduction in respect of Medical Insurance premium
    [Section 80D]


    Persons Covered
    an individual or HUF



    Essential conditions


    - It is allowed in respect of any sum paid in the previous year to GIC or any other insurer, towards medical insurance premium on the health of the following:



    (a) in the case of an individual; (i) his own health;
    (ii) the health of the spouse;
    (iii) the health of parents; ( whether dependent or not)
    (iv) the health of dependant children of the assessee.
    (b) in the case of an HUF — any member of the family.
    - Such insurance should be in accordance with a scheme framed in this behalf by
    (a) GIC and approved by the Central Government or
    (b) any other insurer and approved by the IRDA.
    - The payment should be made by him by any mode of payment other than cash.

    Quantum of deduction
    :


    In case of an individual
    (a) for himself or his spouse and dependent children - Rs. 15,000
    (b) for parent or parents (whether dependent or not) - Rs. 15,000.
    In case of a Hindu undivided family - Rs. 15,000.


    Additional deduction of Rs. 5,000 is allowable in case of a senior citizen.


    Question 5: A, an individual has made the following payments in the previous year 2008-09:
    (1) Rs. 7,000 paid by cheque to GIC for insuring A's own health.
    (2) Rs. 6,000 paid by credit card to GIC for insuring health of A's wife, not dependant on him.
    (3) Rs. 6,000 paid by debit card GIC for insuring the health of A's dependant major child.
    (4) Rs. 1,000 paid in cash to GIC for insuring the health of A's dependant minor daughter.
    (5) Rs. 1,000 paid by cheque to GIC for insuring health of A's dependant brother.
    (6) Rs. 12,000 paid by credit card to GIC for insuring health of A's father (aged 66 year old and resident), not dependant upon him.
    (7) Rs. 9,000 paid by cheque to GIC for insuring health of A's mother, dependant upon A. (aged 66 years resident in India).
    (8) Rs. 1,000 paid by debit card to GIC for insuring health of A's grandfather dependant upon A.
    (9) Rs. 1,000 paid by cheque to GIC for insuring health of A's minor son, not dependant upon him.
    (10) Rs. 100 p.m. paid by cheque to LIC for group insurance of which he is a member.
    (A) Compute the deduction allowable u/s 80D.
    (B) What will be the deduction if A's mother is a non-resident in India.
    6. Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability
    [Section 80DD]

    Persons Covered an individual or a HUF who is resident in India
    Essential conditions


    - Deduction is available if the assessee has during the previous year:


    (a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dependant, being a person with disability; or
    (b) paid or deposited any amount, under any scheme framed by the LIC or any other insurer or UTI and which is approved by the CBDT.
    - The assessee shall furnish a copy of the certificate issued by the medical authority in the prescribed form and manner, along with the return of income under section 139


    Quantum of deduction: Rs. 50,000 irrespective ofactual expenditure incurred/amount deposited or
    Rs. 75,000 where such dependant is a person with severe disability.


    Question 6: A submits the following information regarding his income for the previous year 2008-09.
    Rs.
    1. Salary 1,90,000
    2. Rent received from property in Delhi (per month) 4,000
    3. Winnings from lottery (Gross) 15,000
    He makes the following deposits/Payments during the year
    1. Contribution towards PPF 10,000
    2. Premium paid in cash on Mediclaim policy for his dependant father 8,000
    He has a son being a person with disability, dependant on him, for whom he incurs expenses for his medical treatment and rehabilitation. He also deposits a sum of Rs. 25,000 for the benefit of his son under a scheme framed by the UTI for such a purpose.
    (a) Compute his Total Income for the assessment year 2009-10.
    (b) Compute his tax liability for the assessment year 2008-09.
    7. Deduction in respect of medical treatment, etc.
    [Section 80DDB]




    Persons Covered an individual or a HUF who is resident in India
    Essential conditions

    - Deduction
    isallowedinrespectofanyexpenditure actually incurred for the medical treatment of the following persons for such disease or ailment as may be specified in the rules made in this behalf by the Board:


    In the case of individual — for himself or a dependant
    In the case of HUF — for any member of the HUF

    - The assessee should
    furnish a certificate in the prescribed form from a specialist doctor working in a Government hospital.


    Quantum of deduction: Amount actually paid or

    Rs. 40,000 (Rs. 60,000 in case if senior citizen)
    whichever is less.


    If any amount is received under an insurance from the insurer or reimbursed by an employer for the medical treatment of the person, the amount so received shall be reduced from the deduction allowable under this section.
    8. Deduction for interest paid on loan taken for pursuing higher education
    [Section 80E]

    Persons Covered Individual assessee who must have taken a loan from:
    (a) any financial institution, or
    (b) any approved charitable institution.

    Essential conditions


    - The loan must have been taken for pursuing higher education. Such education must be of assessee himself or any of his relatives. Relative means the spouse and children of that individual.
    - The deduction shall be allowed only in respect of any sum paid by him, in the previous year by way of interest on such loan.
    - Such amount should be paid out of his income chargeable to tax.

    Quantum of deduction
    : The amount paid during previous year towards interest.



    Meaning of higher education
    : Higher education means full time studies for any graduate or post-graduate course in engineering, medicine, management or for a post-graduate course in applied sciences or pure sciences, including mathematics or statistics.



    Question 7
    : Gross Total Income of A for previous year 2008-09 is Rs. 5,20,000. He had taken a loan of Rs. 6,00,000 in 2007-08 from a Bank for pursuing the MBA course by his son from IIM Bangalore. During the previous year 2008-09, he repaid the 1st instalment of loan of Rs. 55,000 and interest of Rs. 70,000. Compute his Total Income for assessment year 2009-10.


    9. Deduction in respect of donations to certain funds, charitable institutions, etc.
    [Section 80G]

    Persons Covered All assesses


    Essential conditions


    - The donation should be of a sum of money. Donations in kind do not qualify for deduction.
    - The donation should be made only to specified funds/institutions.
    - The proper proof of payment is to be furnished along with return of income.

    (A)
    Donationsmadetofollowing areeligible for 100% deduction without any qualifying limit:


    (i) National Defence Fund set up by the Central Government.
    (ii) Prime Minister's National Relief Fund;
    (iii) Prime Minister's Armenia Earthquake Relief Fund;
    (iv) Africa (Public Contributions India) Fund;
    (v) National Foundation for Communal Harmony;
    (vi) University/Educational Institution of National Eminence approved by the prescribed authority;
    (vi) Zila Saksharta Samiti constituted in any district;
    (vii) The National Blood Transfusion Council or any State Blood Transfusion Council;
    (viii) Any fund set up by a State Government to provide medical relief to the poor;
    (ix) The Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund;
    (x) National Illness Assistance Fund;
    (xi) The Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union Territory, as the case may be;
    (xii) National Sports Fund set up by the Central Government;
    (xiii) National Cultural Fund set up by the Central Government;
    (xiv) Fund for Technology Development and Application, set up by the Central Government;
    (xv) National Trust for Welfare of persons with Multiple Disabilities;

    (B)
    Donations made to the following are eligible for 50% deduction without any qualifying limit:


    (i) Jawaharlal Nehru Memorial Fund;
    (ii) Prime Minister's Drought Relief Fund;
    (iii) National Children's Fund;
    (iv) Indira Gandhi Memorial Trust;
    (v) Rajiv Gandhi Foundation.

    (C)
    Donations to the following are eligible for 100% deduction subject to qualifying limit:


    (i) Donation to Government or any approved local authority, institution or association to be utilised for promoting family planning.
    (ii) any sums paid by a company as donations to Indian Olympic Association or to any other notified association or institution for—
    (a) the development of infrastructure for sports and games; or
    (b) the sponsorship of sports and games, in India.

    (D)
    Donations to the following are eligible for 50% deduction subject to qualifying limit:


    (i)DonationtoGovernmentoranyapproved local authority, institution or association to be utilised for any charitable purpose other than promoting family planning.
    (ii) Any other fund or institution which satisfies the conditions of section 80G(5).
    (iii) To any authority constituted in India by or under any law for satisfying the need for housing accommodation or for the purpose of planning development or improvement of cities, towns and villages or for both.
    (iv) To any corporation established by the Central or any State Government for promoting interests of the members of a minority community.
    (v) Any notified temple, mosque, gurdwara, church or other place notified by the Central Government to be of historic, archaeological or artistic importance, for renovation or repair of such place.
    For applying qualifying limit, all donations made to funds/institutions covered under (C) and (D) above shall be aggregated and the aggregate amount shall be limited to 10% of Adjusted Gross Total Income.

    Adjusted Total Income
    : Adjusted Total Income means the


    Gross Total Income
    Less Long-term capital gains
    Less Short-term capital gains u/s 111A
    Less Deductions permissible under chapter VI-A excepting deduction u/s 80G;


    Quantum of deduction: The quantum of deduction shall be the aggregate of the deductions permissible under clauses (A), (B), (C) and (D).


    Question 8
    A, whose Gross Total Income for assessment year 2009-10 is Rs. 2,85,000 (which includes long-term capital gains of Rs. 40,000 and short-term capital gains of Rs. 20,000) submits the following information:


    Rs. Rs.
    1. Contribution towards PPF 10,000
    2. LIP paid for married son not dependant on him. 5,000
    3. Mediclaim Premium paid by cheque for:
    (a) Himself 2,000
    (b) For married son not dependant on him 3,000 5,000
    ———
    4. He has made the following donations:
    (a) National Defence Fund 5,000
    (b) PM's National Relief Fund 4,000
    (c) Indira Gandhi Memorial Trust 5,000
    (d) Delhi University
    (declared as an institution of national eminence) 2,000

    (e) Zila Saksharta Samiti 4,000
    (f) An approved charitable institution 12,000
    (g) Government for Family Planning. 10,000
    (h) Donations of blankets to an orphanage 4,000
    (i) Donations to National Blood Transfusion Council 2,000
    Compute: (A) Total Income for the assessment year 2009-10
    (B) Tax Payable for the assessment year 2009-10


    Question 9: A has computed his income under various heads for the previous year 2008-09 as under:
    Rs.
    (a) Income under the head salary 2,26,000
    (b) Income under the head house property (-) 10,000
    (c) Profits and Gains of business or profession 40,000
    (d) Capital Gains — short-term 20,000
    — long-term 30,000 50,000
    ———
    (e) Income from other sources
    — Winnings of lotteries 10,000
    — Interest on Government Securities 12,000 22,000
    ———
    A also submits the following information:
    (1) Payment made by credit card for Mediclaim policy 6,000
    (2) Expenses on Medical treatment of dependant son being
    a person with disability 15,000

    (3) Payment of interest to Canara Bank, which was taken
    for pursuing approved higher education 25,000

    (4) Donations to:
    Prime Minister's Drought Relief Fund 1,000
    National Fund for Communal Harmony 2,000
    Jawaharlal Nehru Memorial Fund 2,000
    Prime Minister's National Relief Fund 1,200
    Government for Family Planning 17,000
    Approved Charitable Institution 3,000
    (A) Compute the Total Income for assessment year 2009-10.
    (B) Compute the Tax liability if he deposits Rs. 20,000 in his PPF Account during the previous year.
    10. Deductions in respect of rent paid
    [Section 80GG]

    Persons Covered an individual who is

    • either a self-employed person or
    • if he is an employee, he is neither entitled to any HRA nor a rent-free accommodation.

    Other conditions
    (1) The individual, his or her spouse or minor child or a HUF of which he/she is a member, does not own any residential accommodation at the place where such an assessee ordinarily resides or at the place where he works or carries on his business or profession.
    If the assessee i.e. the individual owns any residential accommodation at any place, other than the place of residence or work of the assessee, then such property should not be assessed in the hands of the individual as self-occupied property.
    (2) Such individual should fulfill such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. The assessee must file a declaration in Form No. 10BA alongwith the return of income to claim deduction under section 80GG


    Quantum of deduction: The deduction shall be the minimum of the following amounts:

    (i) Excess of rent paid over 10% of 'Adjusted Total Income';
    (ii) 25% of the "Adjusted Total Income";
    (iii) Rs. 2,000 per month.


    Adjusted Total Income: Adjusted Total Income means the
    GTI – LTCG – STCG u/s 111A – Deduction under chapter VI-A(except section 80GG)
    Question 10: R, who is an advocate in Delhi, furnishes the following particulars for the previous year 2008-09:
    Rs.
    (1) Income from profession 72,000
    (2) Short-term capital gains on sale of gold 18,000
    (3) Long-term capital gains on sale of land 6,000
    (4) Interest on Government Securities 11,000
    (5) Payment of interest on loan taken from a bank for higher studies of his daughter 10,000
    (6) Payment made by credit card for mediclaim policy on his own health and
    the health of his wife 4,000

    (7) Rent paid for a house in Delhi 24,000
    Determine his total income for the assessment year 2009-10.


    Question 11: R, a business man submits the following particulars for previous year 2008-09.

    Rs.
    1. Income from house property (computed) 30,000
    2. Business Income (computed) 40,000
    3. Capital gains (short-term) 20,000
    4. Capital gains (long-term) 30,000
    5. Income from other sources: interest from bank deposit 12,000
    Winnings from races 3,500 15,500
    ———
    6. Deposit in PPF 12,000
    He pays Rs. 2,000 p.m. as rent for his residential accommodation in Delhi. Neither he, nor his family, owns any residential accommodation. Compute his Total Income for assessment year 2009-10.


    Question 12: G, who is working in Delhi as a Manager of X Ltd. furnishes the following particulars of his income for the previous year 2008-09:
    1. Basic Salary Rs. 10,000 per month
    2. DA (forming part of salary for retirement benefits) 10% of Basic salary
    He has taken on rent a furnished accommodation in NOIDA (UP) for which he pays Rs. 3,000 p.m. as rent.
    Besides salary, he has earned the following income:
    Rs.
    (i) Interest on bank deposits 10,000
    (ii) Winnings from card games (gross) 7,000
    Neither he, nor his wife, nor any minor child, owns any residential accommodation at Delhi or NOIDA. However, his wife owns an accommodation in Bombay, which she is claiming as self-occupied in her assessment.
    Compute the Total Income of G for the assessment year 2008-09 assuming that he donates Rs. 6,000 to National Children Fund and deposits Rs. 20,000 in PPF.
    11. Deduction in respect of certain donations for scientific research or rural development [Section 80GGA]

    The deduction is available to a non-business assessee for payments made to the following institutions:
    (i) to an approved scientific research association, university, college or institution for scientific research;
    (ii) to an approved university, college or institution for research in social science or statistical research;
    (iii) to notified rural development fund or to the notified National Urban Poverty Eradication Fund.
    (iv) to a public sector company or a local authority, or to an association or institution approved by the National Committee, for carrying out any eligible project or scheme.
    Quantum of deduction: 100% of the sum paid to the above institutions.


    12. Deduction in respect of contributions given by companies to political parties
    [Section 80GGB]

    Any sum contributed by an Indian company in the previous year to any political party shall be allowed as deduction while computing its total income.
    13. Deduction in respect of contribution given by any person to political parties
    [Section 80GGC]

    Any amount of contribution to political parties an assessee being any person, except

    • local authority and
    • every artificial juridical person wholly or partly funded by the Government

    shall be allowed as deduction which computing the total income of such person.
    14. Deduction in respect of profits and gains from business of collecting and processing of bio degradable waste
    [Section 80JJA]

    Persons Covered All assesses
    Essential conditions The business should of collecting and processing or treating of bio-degradable waste for:
    (i) generating power, or
    (ii) producing, bio-fertilizers, bio-pesticides or other biological agents, or
    (iii) producing bio-gas, or
    (iv) making pellets or briquettes for fuel, or
    (v) organic manure,
    a deduction under section 80JJA shall be allowed.
    Quantum of deduction: The whole of such profits or gains shall be allowed as a deduction for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which such business commences.


    15. Deduction in respect of royalty income, etc., of authors of certain books other than text books
    [Section 80QQB]

    Persons CoveredResident Individual who is an author or co-author of a book
    Essential conditions - The book should be a work of literary, artistic or scientific nature.
    - The income must be derived by him in the exercise of his profession.


    Quantum of deduction 100% of royalty or Rs. 3,00,000, whichever is less.
    Royalty in excess of 15% of the value of book sold during P.Y. shall be ignored.


    Income from outside India Deduction is restricted to the amount brought into India

    • in convertible foreign exchange
    • within a period of 6 months from the end of the previous year or within such further period as the competent authority may allow.

    Certificates to be furnished Deduction allowed only if certificate from publisher is submitted along with the return of income.
    16. Deduction in respect of royalty on patents
    [Section 80RRB]

    Persons CoveredResident Individual who is a patentee or co-patentee
    Essential conditions The patent should be registered on or after 1-4-2003 under the Patents Act, 1970.
    The income must be derived by him in the exercise of his profession.


    Quantum of deduction 100% of such royalty income or Rs. 3,00,000, whichever is less.
    Income from outside India Deduction is restricted to the amount brought into India

    • in convertible foreign exchange
    • within a period of 6 months from the end of the previous year or within such further period as the competent authority may allow.

    Certificates to be furnished Deduction allowed only if certificate by the prescribed authority is submitted along with the return of income.
    17. Deduction in case of a person with disability
    [Section 80U]

    Persons CoveredResident Individual who is a person with disability
    Essential conditions


    He is certified by the medical authority to be a person with disability, at any time during the previous year.
    Quantum of deduction: Rs. 50,000 in case of a person with disability.
    Rs. 75,000 in case of a person with severe disability.

    Question 14: X, who is a person with disability submits the following information. Compute (a) the taxable income; (b) the tax payable for the assessment year 2009-10.
    Rs.
    (i) Salary (per annum) 2,20,000
    (ii) Rent received (per month) 3,500
    (iii) Dividend from Co-operative Society 1,000
    (iv) Interest on Bank Deposits 8,000
    (v) Interest on Government securities 1,000
    (vi) Winnings from Lotteries (Gross) 4,000
    (vii) NSC (VIII Issue) purchased during the year 10,000
    (viii) Deposit under PPF Scheme 30,000
    He earned a long-term capital gain of Rs. 12,000 on sale of gold during the year.

    Question 15
    : X who is a person with severe disability submits you the following information. Compute: (a) the taxable income (b) the net tax payable by X for assessment year 2009-10:


    Rs.
    Salary (per month) 3,000
    Interest on Government securities 2,000
    Interest on Bank Deposits 34,000
    Long-term capital gains 1,85,000
    He deposited Rs. 10,000 in his Public Provident Fund during the previous year.

    Question 16
    : A submits you the following particulars for the previous year 2008-09:


    Rs.
    1. Income under head Salary (computed) 2,26,000
    2. Income from house property (computed) 57,000
    3. Long-term capital gain 50,000
    4. Short-term capital loss 20,000
    5. Profits and gains from business of poultry farming 60,000
    6. Interest on Government securities 6,000
    7. Interest on Bank deposits 6,000
    8. Interest on deposits (Gross) 4,000
    Compute his total income and tax payable for the assessment year 2009-10 by taking into consideration the following payments:
    LIP on his own life 10,000
    PPF 30,000
    Donation to National Children Fund 5,000
    Donation to Prime Minister's Relief Fund 6,000
    Donation to approved charitable institution 20,000
    Donation to Government for family planning 14,000
    Payment by cheque to GIC for insuring
    (a) health of his wife 8,000
    (b) health of dependant son 9,000
    (c) dependant father (aged 66 years and resident in India) 4,000
    (d) dependant brother 1,500
    Expenses on medical treatment of a dependant, being a person with disability 6,000
    Amount deposited in UTI Scheme for dependant relative (handicapped) 25,000
    Payment of interest on account of loan undertaken from charitable institution
    for the education of his son doing M.B.A. 30,000



    Part 2


    18. Deduction for undertakings or enterprises engaged in infrastructure development, etc.
    [Section 80 IA]

    The deduction under this section is available to an assessee whose Gross Total Income includes any profits and gains derived by:
    (a) anyenterprisecarrying on the business of
    (i) developing,
    (ii) operating and maintaining, or
    (iii) developing, operating, maintaining and any infrastructure facility;
    (b) an undertaking which is engaged in the business of providing telecommunication service, etc.;
    (c) an undertaking which develops, maintains, etc. an industrial park;
    (d) an undertaking which is engaged in generation, transmission, distribution of power, etc.;
    (e) an undertaking which lays and begins to operate a cross country natural gas distribution network.

    Conditions applicable to all undertakings/enterprises mentioned above
    :


    (1) Compulsory Audit of accounts and the report should be furnished by the assessee alongwith his return of income.
    (2) Inter-unit transfer of goods or services should be made at market price.
    (3) Power of Central Government to declare that the section shall not apply by notification in the Official Gazette.
    (4) Deduction not to be allowed in cases where return is not filed on or before the due date specified u/s 139(1).


    Quantum and period of deduction in case of all above undertakings/enterprises
    Undertaking/enterprises Period and quantum of deduction
    (1) For all the above undertaking/enterprises other than the enterprise engaged in the business of providing telecommunication, etc. 100% of profits and gains derived from such business for 10 consecutive assessment years out of 15 years* beginning with the year in which undertaking or the enterprise develops and begins to operate any infrastructure facility or develops an industrial park or special economic zone or generates power or commences transmission or distribution of power or undertakes substantial renovation or modernisation.
    (2) For enterprise engaged in the business of providing telecommunication services, etc. For the first 5 consecutive assessment years — 100%,
    Subsequent 5 consecutive assessment years — 30%
    out of 15 years beginning with the year in which enterprisestartsproviding telecommunication services.


    * However, in case of enterprises engaged in developing, etc of any infrastructure facility
    other than port, airport, inland waterway or inland port or navigational channel in the sea, the period of 15 years shall be substituted by 20 years.


    19. Deduction for an undertaking or an enterprise engaged in development of SEZ
    [Section 80 IAB]


    The deduction is available to an assessee, being a Developer, and engaged in the business of developing a SEZ, notified under the Special Economic Zones Act, 2005.



    Quantum of deduction: The deduction shall be allowed of an amount equal to 100% of the profits and gains derived from such business for 10 consecutive assessment years, out of 15 years beginning from the year in which a SEZ has been notified by the Central Government.

    Consequences of transfer of the undertaking
    : Where an undertaking, being a Developer who develops a SEZ and transfers the operation and maintenance of such Special Economic Zone to another Developer, the deduction shall be allowed to such transferee Developer for the remaining period in the 10 consecutive assessment years as if the operation and maintenance were not so transferred to the transferee Developer.



    Conditions applicable:
    (1) Compulsory Audit of accounts and the report should be furnished by the assessee alongwith his return of income.
    (2) Inter-unit transfer of goods or services should be made at market price.
    (3) Power of Central Government to declare that the section shall not apply by notification in the Official Gazette.
    (4) Deduction not to be allowed in cases where return is not filed on or before the due date specified u/s 139(1).


    20. Deduction for certain industrial undertakings other than infrastructure development undertakings
    [Section 80-IB]

    The deduction under this section is available to an assessee whose Gross Total Income includes any profits and gains derived from the business of:

    S. No. Nature of activity Quantum of deduction allowed
    1 Commercial production and refining of mineral oil 100% of profits for a period of 7 A. Y.
    2 Processing, preservation and packaging of fruits or vegetables 100% of profits for a period of first 5 A. Y.
    25% of profits for next 5 A.Y.

    (30% in case of Company assessee)
    3 Integrated business of handling, storage and transportation of food grains
    4 Operating and maintaining a hospital in a rural area 100% of profits for a period of 5 A. Y.
    5 Operating and maintaining a hospital in any where in India other than excluded area. [w.e.f. A. Y. 2009-10] 100% of profits for a period of 5 A. Y.




    21.Special provisions for certain undertakings or enterprises in certain special category States
    [Section 80-IC]

    Where any assessee, in the States of Himachal Pradesh and Uttaranchal, is engaged in the business of manufacturing or producing
    - any product other than specified under Schedule XIII - in any notified specified area
    - any product specified in Schedule XIV - in any other area
    a deduction shall be allowed provided certain conditions are satisfied.


    Quantum of deduction: The deduction shall be 100% of such profits and gains for 5 A. Y. commencing with the initial assessment year and thereafter, 25% (or 30% where the assessee is a company) of the profits and gains.


    Other provisions
    (1) Deduction to be allowed both for newly established units or for existing undertaking which makes substantial expansion (50% increase in the value of plant & machinery)
    (2) Aggregate period of deduction for existing undertakings not to exceed 10 years
    (3) Other conditions of section 80-IA(as given above) also applicable.

    21. Deduction in respect of profits and gains from business of hotels & convention centres in specified area
    [Section 80-ID]

    Deduction is allowed to an assessee whose gross total income includes any profit or gain derived from—
    (a) the business of hotel located in the NCT of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad, if such hotel is constructed and has started or starts functioning at any time during the period beginning on 1-4-2007 and ending on 31-3-2010; or
    (b) the business of building, owning and operating a convention centre, located in the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad, if such convention centre is constructed at any time during the period beginning on 1-4-2007 and ending on 31-3-2010.
    (c) With a view to promoting tourism and to attract tourists to certain World Heritage Sites in India, the Act has extended the scope of 100% tax benefits available in this section also to new two-star, three-star or four-star category hotels located in specified districts having a World Heritage Site. Such hotels are required to be constructed and start functioning at any time during the period beginning on 1-4-2008 and ending on 31-3-2013. [w.e.f. A. Y. 2009-10]
    The above business is hereinafter referred to as the eligible business.


    Conditions to be satisfied for claiming deduction [Section 80-ID(3)]
    (i) The eligible business is not formed by the splitting up, or the reconstruction, of a business already in existence;
    (ii) The eligible business is not formed by the transfer to a new business of a building previously used as a hotel or a convention centre, as the case may be;
    (iii) The eligible business is not formed by the transfer to a new business of machinery or plant previously used for any purpose.
    (iv) Other conditions of section 80-IA(as given above) also applicable.
    Benefit under their section shall not be available to amalgamated company in case of amalgamation.
    Quantum of deduction
    100% of the profit and gains derived from such business for 5 consecutive assessment years beginning from the initial assessment year.
    22. Special provisions in respect of certain undertakings in North Eastern States
    [Section 80 – IE]

    Deduction is allowed to an assessee whose gross total income includes any profits and gains derived by an undertaking which fulfils the following conditions:


    (1) It has during the period beginning on 1-4-2007 and ending before 1-4-2017 begun or begins in any of the North-Eastern States:
    (i) to manufacture or produce any eligible article or thing;
    (ii) to undertake substantial expansion to manufacture or produce any eligible article or thing;
    (iii) to carry on any eligible business.
    (2) It is not formed by splitting up, or the reconstruction, of a business already in existence:
    (3) It is not formed by the transfer to a new business of machinery or plant previously used for any purpose.
    (4) Other conditions of section 80-IA(as given above) are also applicable.


    Quantum of deduction
    100% of the profits and gains derived from such business for 10 consecutive assessment years commencing with the initial assessment year.



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  7. #17
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    Income Tax Complete Notes


    • Introduction
    • Residential Status
    • Tax Rates
    • Income from Salary
    • Income from House Property
    • Income from Business & Profession
    • Capital Gains
    • Income from Other Sources
    • Clubbing of Income
    • Set-off Carry Forward
    • Deductions from Gross Total Income
    • Agricultural Income
    • Advance Tax
    • Assessment Procedures

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  8. #18
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    Tax notes on TDS


    Chapter 15

    Tax Deduction at Source (TDS)


    Nature of Payment Person
    Responsible to deduct Tax
    Maximum limit on which TDS is not deductible Time of deduction of TDS Rate of TDS* AO's Certificate for deduction at lower rate or non deduction (section 197) Is self declaration by payee for non- deduction admissible (valid for one year)
    (1) (2) (3) (4) (5) (6)
    Salary (Section 192) All Assessees Rs. 1,60,000/1,90,000/ 2,40,000 At the time of payment As applicable to an individual Yes No
    Interest on securities
    (Section 193)
    Local authority/ statutory corporation/ Central Govt. in
    case of 8% (taxable) saving
    bonds



    Company
    Exempt Categories listed.












    Monetary limit of Rs. 2,500
    in case of listed debenture;

    otherwise no minimum







    At the time of Payment or credit whichever is earlier.

    Securities issued by local authority/statutory corporation/8% (taxable) saving bonds — 10%




    Listed or Unlisted Debentures
    10%



    Yes Yes
    Rs. 10,000 in case of 8% bonds

    Dividends other than dividends referred to in section 115-O
    (Section 194)
    Domestic Companies Rs. 2,500 in case of individual share-holder At the time of payment or distribution 10% Yes Yes.
    Interest other than interest on securities
    (Section 194A)
    All Assessee except those individual and HUF who are not covered u/s 44AB(a) or 44AB(b) in the preceding P. Y. Rs. 5,000
    Rs. 10,000, in case the payer is a banking co./co-operative bank/post office
    At the time of payment or credit whichever is earlier 10% Yes, Applica-tion in Form No. 13, Appro-priate Certificate to be issued by AYes Yes, Applica-tion in Form No. 13, Appro-priate Certificate to be issued by AO Yes, Applica-tion in Form No. 13, Appro-priate Certificate to be issued by AO Yes, Applica-tion in Form No. 13, Appro-priate Certificate to be issued by AO Yes
    Winnings from lotteries, crossword puzzles, etc. (Section 194B) All Assessees Rs. 5,000 At the time of payment 30% No No
    Winnings from horse races (Section 194BB) Any person being a book maker or a person who is a licensee Rs. 2,500 At the time of payment 30% No No
    Payment to Contractor [Section 194C(1)]






    Payment by contractor to sub-contractors [Section 194C(2)]
    W.e.f. 1-10-2009 there is no distinction between a contractor or sub-contractor)
    Specified persons/all assessees except
    those individuals and HUF (also AOP and BOI w.e.f. 1-6-2008) who are not covered u/s 44AB(a) or 44AB(b) in the preceding P. Y.
    Rs. 20,000 for single payment
    or aggregate amount
    in the financial year
    does not exceed Rs. 50,000
    No Tax to be deducted at source if the payment is made to a transporter on or after 1-10-2009 provided he provides his PAN.
    At the time of payment or credit whichever is earlier In case of Advertising
    contract 1%
    In other Case 2%


    In case of sub-Contractor 1%
    W.e.f. 1-10-2009
    (i) 1% where payment for a contract is to be made to individual
    (ii) 2% where payment for a contract is to be made to any other entity.

    Yes No
    Insurance commission (Section 194D) Insurance companies Rs. 5,000 At the time of payment or credit whichever earlier.




    10%




    Yes No
    Non-resident sportsmen or sports associations (Section 194E) All assessees Nil At the time of payment or credit whichever earlier. 10% No No
    National Savings Scheme (Section 194EE) Post Master Rs. 2,500 At the time of payment 20% No No
    Commission on sale of lottery tickets (Section 194G) Stockist, distributor, etc. of lottery tickets Rs. 1,000 At the time of payment or credit whichever earlier. 10% Yes Yes
    Commission or brokerage (Section 194H) All Assessee except those individual and HUF who are not covered u/s 44AB(a) or 44AB(b) in the preceding P. Y. Rs. 2,500 do— 10% Yes Yes
    Rent
    (Section 194-I)
    All Assessee except those individual and HUF who are not covered u/s 44AB(a) or 44AB(b) in the preceding P. Y. Exceeds Rs. 1,20,000 in a financial year At the time of payment or credit whichever earlier. Rent for use of any P & M or equipment 10%
    Rent the use of any
    land or building or furniture or fittings—
    If payee is individual or HUF 15%
    In any other case 20%
    1.10.2009 the rates will be as under:
    (a) 2% for the use of any machinery or plant or equipment
    (b) 10% for the use of any land or building or furniture or fittings for persons.
    Yes Yes
    Fees for professional
    or Technical Services or royalty or non-compete fee (Section* 194J)
    do— Rs. 20,000 each in a financial year At the time of payment or credit whichever earlier. 10% Yes Yes
    Payment of compensation on acquisition of certain immovable property
    (Sec. 194LA)
    Any person responsible for making such payment Rs. 1,00,000 At the time of payment 10% Yes Yes

    Notes:

    1. Where amount is credited on the last day of accounting year, the tax amount thereon is to be deposited within two months from the end of the month in which credit is made.

    2. If the amount is credited on the last day of the accounting year then the TDS certificate in Form No. 16A may be issued within one week from the end of two months from the last day of the month in which amount is credited.
    3. The person responsible for deducting tax may (on request of payee) issue one consolidated certificate for tax deducted during the whole of the financial year within one month from the close of such financial year.
    4. e-filing of statements is mandatory in case of:
    (a) office of the Government, or
    (b) a company, or
    (c) a person required to get his accounts audited under section 44AB in the immediate preceding financial year or
    (d) if the number of deductees in a immediate preceding quarter is 50 or more, and optional for other assessees.
    The quarterly statement filed on computer media should be accompanied by following forms:
    Quarterly statement Form No. 27A
    Quarterly statement of TCS Form No. 27A
    Where other assessees file paper return, it should be accompanied by copies of the receipted challans and TDS certificates.
    5. Where interest/income is credited to any account, whether called interest account, suspense account or by any other name in the books of accounts of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee.
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  9. #19
    anand
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    Notes on sections

    CHAPTER – I PRELIMINARY
    1 Short title, extent and commencement
    2 Definitions
    3 "Previous year" defined
    CHAPTER – II BASIS OF CHARGE
    4 Charge of income-tax
    5 Scope of total income
    5A Apportionment of income between spouses governed by Portuguese Civil Code
    6 Residence in India
    7 Income deemed to be received
    8 Dividend income
    9 Income deemed to accrue or arise in India
    CHAPTER – III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
    10 Incomes not included in total income
    10A Special provision in respect of newly established undertakings in free trade zone, etc
    10AA Special provisions in respect of newly established Units in Special Economic Zones
    10B Special provisions in respect of newly established hundred per cent export-oriented undertakings
    10BA Special provisions in respect of export of certain articles or things
    10BB Meaning of computer programmes in certain cases
    10C Special provision in respect of certain industrial undertakings in North-Eastern Region
    11 Income from property held for charitable or religious purposes
    12 Income of trusts or institutions from contributions
    12A Conditions for applicability of sections 11 and 12
    12AA Procedure for registration
    13 Section 11 not to apply in certain cases
    13A Special provision relating to incomes of political parties
    CHAPTER – IV COMPUTATION OF TOTAL INCOME
    14 Heads of income
    14A Expenditure incurred in relation to income not includible in total income
    1. SALARIES
    15 Salaries
    16 Deductions from salaries
    17 Salary”, “perquisite” and “profits in lieu of salary” defined
    1. INCOME FROM HOUSE PROPERTY
    22 Income from house property
    23 Annual value how determined
    24 Deductions from income from house property
    25 Amounts not deductible from income from house property
    25A Special provision for cases where unrealised rent allowed as deduction is realised subsequently
    25AA Unrealised rent received subsequently to be charged to income-tax
    25B Special provision for arrears of rent received
    26 Property owned by co-owners
    27 Owner of house property”, “annual charge”, etc., defined
    1. PROFITS AND GAINS FROM BUSINESS OR PROFESSION
    28 Profits and gains of business or profession
    29 Income from profits and gains of business or profession, how computed
    30 Rent, rates, taxes, repairs and insurance for buildings
    31 Repairs and insurance of machinery, plant and furniture
    32 Depreciation
    32A Investment allowance
    32AB Investment deposit account
    33 Development rebate
    33A Development allowance
    33AB Tea development account, coffee development account and rubber development account
    33ABA Site Restoration Fund
    33AC Reserves for shipping business
    33B Rehabilitation allowance
    34 Conditions for depreciation allowance and development rebate
    34A Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies
    35 Expenditure on scientific research
    35A Expenditure on acquisition of patent rights or copyrights
    35AB Expenditure on know-how
    35ABB Expenditure for obtaining licence to operate telecommunication services
    35AC Expenditure on eligible projects or schemes
    35CCA Expenditure by way of payment to associations and institutions for carrying out rural development programmes
    35CCB Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources
    35D Amortisation of certain preliminary expenses
    35DD Amortisation of expenditure in case of amalgamation or demerger
    35DDA Amortisation of expenditure incurred under voluntary retirement scheme
    35E Deduction for expenditure on prospecting, etc., for certain minerals
    36 Other deductions
    37 General
    38 Building, etc., partly used for business, etc., or not exclusively so used
    40 Amounts not deductible
    40A Expenses or payments not deductible in certain circumstances
    41 Profits chargeable to tax
    42 Special provision for deductions in the case of business for prospecting, etc., for mineral oil
    43 Definitions of certain terms relevant to income from profits and gains of business or profession
    43A Special provisions consequential to changes in rate of exchange of currency
    43B Certain deductions to be only on actual payment
    43C Special provision for computation of cost of acquisition of certain assets
    43D Special provision in case of income of public financial institutions, public companies, etc.
    44 Insurance business
    44A Special provision for deduction in the case of trade, professional or similar association
    44AA Maintenance of accounts by certain persons carrying on profession or business
    44AB Audit of accounts of certain persons carrying on business or profession
    44AD Special provision for computing profits and gains of business of civil construction, etc.
    44AE Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages
    44AF Special provisions for computing profits and gains of retail business
    44B Special provision for computing profits and gains of shipping business in the case of non-residents
    44BB Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
    44BBA Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents
    44BBB Special provision for computing profits and gains of foreign companies, engaged in the business of civil construction, etc., in certain turnkey power projects
    44C Deduction of head office expenditure in the case of non-residents
    44D Special provisions for computing income by way of royalties, etc., in the case of foreign companies
    44DA Special provision for computing income by way of royalties, etc., in case of non-residents
    44DB Special provision for computing deductions in the case of business reorganization of co-operative banks
    1. CAPITAL GAINS
    45 Capital gains
    46 Capital gains on distribution of assets by companies in liquidation
    46A Capital gains on purchase by company of its own shares or other specified securities
    47 Transactions not regarded as transfer
    47A Withdrawal of exemption in certain cases
    48 Mode of computation
    49 Cost with reference to certain modes of acquisition
    50 Special provision for computation of capital gains in case of depreciable assets
    50A Special provision for cost of acquisition in case of depreciable asset
    50B Special provision for computation of capital gains in case of slump sale
    50C Special provision for full value of consideration in certain cases
    51 Advance money received
    54 Profit on sale of property used for residence
    54B Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases
    54D Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases
    54E Capital gain on transfer of capital assets not to be charged in certain cases
    54EA Capital gain on transfer of long-term capital assets not to be charged in the case of investment in specified securities
    54EB Capital gain on transfer of long-term capital assets not to be charged in certain cases
    54EC Capital gain not to be charged on investment in certain bonds
    54ED Capital gain on transfer of certain listed securities or unit, not to be charged in certain cases
    54F Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house
    54G Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area
    54GA Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone
    54H Extension of time for acquiring new asset or depositing or investing amount of capital gain
    55 Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”
    55A Reference to Valuation Officer
    1. INCOME FROM OTHER SOURCES
    56 Income from other sources
    57 Deductions
    58 Amounts not deductible
    59 Profits chargeable to tax
    CHAPTER – V INCOME OF OTHER PERSONS INCLUDED IN ASSESSEES TOTAL INCOME
    60 Transfer of income where there is no transfer of assets
    61 Revocable transfer of assets
    62 Transfer irrevocable for a specified period
    63 Transfer” and “revocable transfer” defined
    64 Income of individual to include income of spouse, minor child, etc.
    65 Liability of person in respect of income included in the income of another person
    CHAPTER – VI AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSS
    1. AGGREGATION OF INCOME
    66 Total income
    67A Method of computing a member’s share in income of association of persons or body of individuals
    68 Cash credits
    69 Unexplained investments
    69A Unexplained money, etc.
    69B Amount of investments, etc., not fully disclosed in books of account
    69C Unexplained expenditure, etc.
    69D Amount borrowed or repaid on hundi
    1. SET OFF CARRY FORWARD AND SET OFF
    70 Set off of loss from one source against income from another source under the same head of income
    71 Set off of loss from one head against income from another
    71A Transitional provisions for set off of loss under the head “Income from house property”
    71B Carry forward and set off of loss from house property
    72 Carry forward and set off of business losses
    72A Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc.
    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
    72AB Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks
    73 Losses in speculation business
    74 Losses under the head “Capital gains”
    74A Losses from certain specified sources falling under the head "income from other sources"
    75 Losses of firms
    78 Carry forward and set off of losses in case of change in constitution of firm or on succession
    79 Carry forward and set off of losses in the case of certain companies
    80 Submission of return for losses
    CHAPTER – VI A DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME
    1. GENERAL
    80A Deductions to be made in computing total income
    80AB Deductions to be made with reference to the income included in the gross total income
    80AC Deduction not to be allowed unless return furnished
    80B Definitions
    1. DEDUCTIONS IN RESPECT OF CERTAIN PAYMENTS
    80C Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
    80CCA Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan
    80CCB Deduction in respect of investment made under Equity Linked Savings Scheme
    80CCC Deduction in respect of contribution to certain pension funds
    80CCD Deduction in respect of contribution to pension scheme of Central Government
    80CCE Limit on deductions under sections 80C, 80CCC and 80CCD
    80D Deduction in respect of medical insurance premia
    80DD Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability
    80DDB Deduction in respect of medical treatment, etc.
    80E Deduction in respect of interest on loan taken for higher education
    80G Deduction in respect of donations to certain funds, charitable institutions, etc.
    80GG Deductions in respect of rents paid
    80GGA Deduction in respect of certain donations for scientific research or rural development
    80GGB Deduction in respect of contributions given by companies to political parties
    80GGC Deductions in respect of contributions given by any person to political parties
    1. DEDUCTIONS IN RESPECT OF CERTAIN INCOMES
    80HH Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas
    80HHA Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas
    80HHB Deduction in respect of profits and gains from projects outside India
    80HHBA Deduction in respect of profits and gains from housing projects in certain cases
    80HHC Deduction in respect of profits retained for export business
    80HHD Deduction in respect of earnings in convertible foreign exchange
    80HHE Deduction in respect of profits from export of computer software, etc.
    80HHF Deduction in respect of profits and gains from export or transfer of film software, etc.
    80I Deduction in respect of profits and gains from industrial undertakings after a certain date, etc.
    80IA Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.
    80IAB Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone
    80IB Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings
    80IC Special provisions in respect of certain undertakings or enterprises in certain special category States
    80ID Deduction in respect of profits and gains from business of hotels and convention centres in specified area
    80IE Special provisions in respect of certain undertakings in North-Eastern States
    80JJA Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste
    80JJAA Deduction in respect of employment of new workmen
    80LA Deduction in respect of certain incomes of Offshore Banking Units and International Financial Services Centre
    80O Deduction in respect of royalties, etc., from certain foreign enterprises
    80P Deduction in respect of income of co-operative societies
    80Q Deduction in respect of profits and gains from the business of publication of books
    80QQA Deduction in respect of professional income of authors of text books in Indian languages
    80QQB Deduction in respect of royalty income, etc., of authors of certain books other than text books
    80R Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc.
    80RR Deduction in respect of professional income from foreign sources in certain cases
    80RRA Deduction in respect of remuneration received for services rendered outside India
    80RRB Deduction in respect of royalty on Patents
    1. OTHERS
    80U Deduction in case of a person with disability
    CHAPTER – VII INCOMES FORMING PART OF TOTAL INCOME ON WHICH NO INCOME TAX IS PAYABLE
    86 Share of member of an association of persons or body of individuals in the income of the association or body
    CHAPTER – VIII REBATES AND RELIEF
    1. REBATE OF INCOME TAX
    87 Rebate to be allowed in computing income-tax
    88 Rebate on life insurance premia, contribution to provident fund, etc.
    88E Rebate in respect of securities transaction tax
    1. RELIEF OF INCOME TAX
    89 Relief when salary, etc., is paid in arrears or in advance
    CHAPTER – IX DOUBLE TAXATION RELIEF
    90 Agreement with foreign countries
    90A Adoption by Central Government of agreements between specified associations for double taxation relief
    91 Countries with which no agreement exists
    CHAPTER – X SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX
    92 Computation of income from international transaction having regard to arm’s length price
    92A Meaning of associated enterprise
    92B Meaning of international transaction
    92C Computation of arm’s length price
    92CA Reference to Transfer Pricing Officer
    92D Maintenance and keeping of information and document by persons entering into an international transaction
    92E Report from an accountant to be furnished by persons entering into international transaction
    92F Definitions of certain terms relevant to computation of arm’s length price, etc
    93 Avoidance of income-tax by transactions resulting in transfer of income to non-residents
    94 Avoidance of tax by certain transactions in securities
    CHAPTER – XII DETERMINATION OF TAX IN CERTAIN SPECIAL CASES
    110 Determination of tax where total income includes income on which no tax is payable
    111 Tax on accumulated balance of recognised provident fund
    111A Tax on short-term capital gains in certain cases
    112 Tax on long-term capital gains
    113 Tax in the case of block assessment of search cases
    115A Tax on dividends, royalty and technical service fees in the case of foreign companies
    115AB Tax on income from units purchased in foreign currency or capital gains arising from their transfer
    115AC Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
    115ACA Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
    115AD Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
    115B Tax on profits and gains of life insurance business
    115BB Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever
    115BBA Tax on non-resident sportsmen or sports associations
    115BBB Tax on income from units of an open-ended equity oriented fund of the unit Trust of India or of Mutual Funds
    115BBC Anonymous donations to be taxed in certain cases
    CHAPTER – XII-A SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON RESIDENTS
    115C Definitions
    115D Special provision for computation of total income of non-residents
    115E Tax on investment income and long-term capital gains
    115F Capital gains on transfer of foreign exchange assets not to be charged in certain cases
    115G Return of income not to be filed in certain cases
    115H Benefit under Chapter to be available in certain cases even after the assessee becomes resident
    115I Chapter not to apply if the assessee so chooses
    CHAPTER – XII-B SPECIAL PROVISIONS RELATING TO CERTAIN COMPANIES
    115J Special provisions relating to certain companies
    115JA Deemed income relating to certain companies
    115JAA Tax credit in respect of tax paid on deemed income relating to certain companies
    115JB Special provision for payment of tax by certain companies
    CHAPTER – XII-D SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES
    115O Tax on distributed profits of domestic companies
    115P Interest payable for non-payment of tax by domestic companies
    115Q When company is deemed to be in default
    CHAPTER – XII-E SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME
    115R Tax on distributed income to unit holders
    115S Interest payable for non-payment of tax
    115T Unit Trust of India or mutual fund to be an assessee in default
    CHAPTER – XII-F SPECIAL PROVISIONS RELATING TO TAX ON INCOME RECEIVED FROM VENTURE CAPITAL COMPANIES AND VENTUIRE CAPITAL FUNDS
    115U Tax on income in certain cases
    CHAPTER – XII-G SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES
    1. MEANING OF CERTAIN EXPRESSIONS
    115V Definitions
    1. COMPUTATION OF TONNAGE INCOME FROM BUSINESS OF OPERATING QUALIFYING SHIPS
    115VA Computation of profits and gains from the business of operating qualifying ships
    115VB Operating ships
    115VC Qualifying company
    115VD Qualifying ship
    115VE Manner of computation of income under tonnage tax scheme
    115VF Tonnage income
    115VG Computation of tonnage income
    115VH Calculation in case of joint operation, etc.
    115VI Relevant shipping income
    115VJ Treatment of common costs
    115VK Depreciation
    115VL General exclusion of deduction and set off, etc.
    115VM Exclusion of loss
    115VN Chargeable gains from transfer of tonnage tax assets
    115VO Exclusion from provisions of section 115JB
    1. PROCEDURE FOR OPTION OF TONNAGE TAX SCHEME
    115VP Method and time of opting for tonnage tax scheme
    115VQ Period for which tonnage tax option to remain in force
    115VR Renewal of tonnage tax scheme
    115VS Prohibition to opt for tonnage tax scheme in certain cases
    1. CONDITIONS FOR APPLICABILITY OF TONNAGE TAX SCHEME
    115VT Transfer of profits to Tonnage Tax Reserve Account
    115VU Minimum training requirement for tonnage tax company
    115VV Limit for charter in of tonnage
    115VW Maintenance and audit of accounts
    115VX Determination of tonnage
    1. AMALGAMATION AND DEMERGER OF SHIPPING COMPANIES
    115VY Amalgamation
    115VZ Demerger
    1. MISCELLENEOUS
    115VZA Effect of temporarily ceasing to operate qualifying ships
    1. PROVISIONS OF THIS CHAPTER NOT TO APPLY IN CERTAIN CASES
    115VZB Avoidance of tax
    115VZC Exclusion from tonnage tax scheme
    CHAPTER – XII-H INCOME TAX ON FRINGE BENEFITS
    1. MEANING OF CERTAIN EXPRESSIONS
    115W Definitions
    1. BASIS OF CHARGE
    115WA Charge of fringe benefit tax
    115WB Fringe benefits
    115WC Value of fringe benefits
    1. PROCEDURE FOR FILING OF RETURN IN RESPECT OF FRINGE BENEFITS ASSESSMENT AND PAYMEBNT OF TAX IN RESPECT THEREOF
    115WD Return of fringe benefits
    115WE Assessment
    115WF Best judgment assessment
    115WG Fringe benefits escaping assessment
    115WH Issue of notice where fringe benefits have escaped assessment
    115WI Payment of fringe benefit tax
    115WJ Advance tax in respect of fringe benefits
    115WK Interest for default in furnishing return of fringe benefits
    115WKA Recovery of fringe benefit tax by the employer from the employee
    115WL Application of other provisions of this Act
    CHAPTER – XIII INCOME TAX AUTHORITIES
    1. APPOINTMENT AND CONTROL
    116 Income-tax authorities
    117 Appointment of income-tax authorities
    118 Control of income-tax authorities
    119 Instructions to subordinate authorities
    1. JURISDICTION
    120 Jurisdiction of income-tax authorities
    124 Jurisdiction of Assessing Officers
    127 Power to transfer cases
    129 Change of incumbent of an office
    1. POWERS
    131 Power regarding discovery, production of evidence, etc.
    132 Search and seizure
    132A Powers to requisition books of account, etc.
    132B Application of seized or requisitioned assets
    133 Power to call for information
    133A Power of survey
    133B Power to collect certain information
    134 Power to inspect registers of companies
    135 Power of Director General or Director, Chief Commissioner or Commissioner and Joint Commissioner
    136 Proceedings before income-tax authorities to be judicial proceedings
    1. DISCLOSURE OF INFORMATION
    138 Disclosure of information respecting assessees
    CHAPTER – XIV PROCEDURE FOR ASESESSMENT
    139 Return of income
    139A Permanent account number
    139B Scheme for submission of returns through Tax Return Preparers
    139C Power of Board to dispense with furnishing documents, etc., with the return
    139D Filing of return in electronic form
    140 Return by whom to be signed
    140A Self-assessment
    142 Inquiry before assessment
    142A Estimate by Valuation Officer in certain cases
    143 Assessment
    144 Best judgment assessment
    144A Power of Joint Commissioner to issue directions in certain cases
    145 Method of accounting
    145A Method of accounting in certain cases
    147 Income escaping assessment
    148 Issue of notice where income has escaped assessment
    149 Time limit for notice
    150 Provision for cases where assessment is in pursuance of an order on appeal, etc.
    151 Sanction for issue of notice
    152 Other provisions
    153 Time limit for completion of assessments and reassessments
    153A Assessment in case of search or requisition
    153B Time limit for completion of assessment under section 153A
    153C Assessment of income of any other person
    153D Prior approval necessary for assessment in cases of search or requisition
    154 Rectification of mistake
    155 Other amendments
    156 Notice of demand
    157 Intimation of loss
    158 Intimation of assessment of firm
    CHAPTER - XIV-A SPECIAL PROVISIONS FOR AVOIDING REPETITIVE APPEALS
    158A Procedure when assessee claims identical question of law is pending before High Court or Supreme Court
    CHAPTER – XIV-B SPECIAL PROVISIONS FOR ASSESSMENT OF SEARCH CASES
    158B Definitions
    158BA Assessment of undisclosed income as a result of search
    158BB Computation of undisclosed income of the block period
    158BC Procedure for block assessment
    158BD Undisclosed income of any other person
    158BE Time limit for completion of block assessment
    158BF Certain interests and penalties not to be levied or imposed
    158BFA Levy of interest and penalty in certain cases
    158BG Authority competent to make the block assessment
    158BH Application of other provisions of this Act
    158BI Chapter not to apply after certain date
    CHAPTER – XV LIABILITY IN SPECIAL CASES
    1. LEGAL REPRESENTATIVES
    159 Legal representatives
    1. REPRESENTATIVE ASSESEES- GENERAL PROVISIONS
    160 Representative assessee
    161 Liability of representative assessee
    162 Right of representative assessee to recover tax paid
    1. REPRESENTATIVE ASSESSEES- SPECIAL CASES
    163 Who may be regarded as agent
    164 Charge of tax where share of beneficiaries unknown
    164A Charge of tax in case of oral trust
    165 Case where part of trust income is chargeable
    1. REPRESENTATIVE ASSESSEES-MISCELLENEOUS PROVISIONS
    166 Direct assessment or recovery not barred
    167 Remedies against property in cases of representative assessees
    DD. FIRMS AOP AND BOI
    167A Charge of tax in the case of a firm
    167B Charge of tax where shares of members in association of persons or body of individuals unknown, etc.
    1. EXECUTORS
    168 Executors
    169 Right of executor to recover tax paid
    1. SUCCESSION OF BUSINESS OR PROFESSION
    170 Succession to business otherwise than on death
    1. PARTITION
    171 Assessment after partition of a Hindu undivided family
    1. PROFITS OF NON RESIDENTS FROM OCCASSIONAL SHIPPING BUSINESS
    172 Shipping business of non-residents
    1. RECOVERY OF TAX IN RESPECT OF NON RESIDENTS
    173 Recovery of tax in respect of non-resident from his assets
    1. PERSONS LEAVING INDIA
    174 Assessment of persons leaving India
    JA. AOP BOI OR ARTIFICIAL JURIDICAL PERSONS FORMED FOR A PARTICULAR EVENT OR PURPOSE
    174A Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose
    1. PERSONS TRYING TO ALIENATE THEIR ASSETS
    175 Assessment of persons likely to transfer property to avoid tax
    1. DISCONTINUANCE OF BUSINESS OR DISSOLUTION
    176 Discontinued business
    177 Association dissolved or business discontinued
    178 Company in liquidation
    1. PRIVATE COMPANIES
    179 Liability of directors of private company in liquidation
    1. SPECIAL PROVISIONS FOR CERTAIN KIND OF INCOMES
    180 Royalties or copyright fees for literary or artistic work
    180A Consideration for know-how
    CHAPTER – XVI SPECIAL PROVISIONS APPLICABLE TO FIRMS
    1. ASSESSMENT OF FIRMS
    184 Assessment as a firm
    185 Assessment when section 184 not complied with
    1. CHANGES IN CONSTITUTION, SUCCESSION AND DISSOLUTION
    187 Change in constitution of a firm
    188 Succession of one firm by another firm
    188A Joint and several liability of partners for tax payable by firm
    189 Firm dissolved or business discontinued
    189A Provisions applicable to past assessments of firms
    CHAPTER XVII COLLECTION AND RECOVERY OF TAX
    1. GENERAL
    190 Deduction at source and advance payment
    191 Direct payment
    1. DEDUCTION AT SOURCE
    192 Salary
    193 Interest on securities
    194 Dividends
    194A Interest other than “Interest on securities”
    194B Winnings from lottery or crossword puzzle
    194BB Winnings from horse race
    194C Payments to contractors and sub-contractors
    194D Insurance commission
    194E Payments to non-resident sportsmen or sports associations
    194EE Payments in respect of deposits under National Savings Scheme, etc.
    194F Payments on account of repurchase of units by Mutual Fund or Unit Trust of India
    194G Commission, etc., on the sale of lottery tickets
    194H Commission or brokerage
    194I Rent
    194J Fees for professional or technical services
    194K Income in respect of units
    194L Payment of compensation on acquisition of capital asset
    194LA Payment of compensation on acquisition of certain immovable property
    195 Other sums
    195A Income payable “net of tax”
    196 Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations
    196A Income in respect of units of non-residents
    196B Income from units
    196C Income from foreign currency bonds or shares of Indian company
    196D Income of Foreign Institutional Investors from securities
    197 Certificate for deduction at lower rate
    197A No deduction to be made in certain cases
    198 Tax deducted is income received
    199 Credit for tax deducted
    200 Duty of person deducting tax
    201 Consequences of failure to deduct or pay
    202 Deduction only one mode of recovery
    203 Certificate for tax deducted
    203A Tax deduction and collection account number
    203AA Furnishing of statement of tax deducted
    204 Meaning of “person responsible for paying”
    205 Bar against direct demand on assessee
    206 Persons deducting tax to furnish prescribed returns
    206A Furnishing of quarterly return in respect of payment of interest to residents without deduction of tax
    BB. COLLECTION AT SOURCE
    206C Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc.
    206CA Tax collection account number
    1. ADVANCE PAYMENT OF TAX
    207 Liability for payment of advance tax
    208 Conditions of liability to pay advance tax
    209 Computation of advance tax
    210 Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer
    211 Instalments of advance tax and due dates
    214 Interest payable by Government
    215 Interest payable by assessee
    216 Interest payable by assessee in case of underestimate, etc.
    217 Interest payable by assessee when no estimate made
    218 When assessee deemed to be in default
    219 Credit for advance tax
    1. COLLECTION AND RECOVERY
    220 When tax payable and when assessee deemed in default
    221 Penalty payable when tax in default
    222 Certificate to Tax Recovery Officer
    223 Tax Recovery Officer by whom recovery is to be effected
    224 Validity of certificate and cancellation or amendment thereof
    225 Stay of proceedings in pursuance of certificate and amendment or cancellation thereof
    226 Other modes of recovery
    227 Recovery through State Government
    228A Recovery of tax in pursuance of agreements with foreign countries
    229 Recovery of penalties, fine, interest and other sums
    230 Tax clearance certificate
    232 Recovery by suit or under other law not affected
    1. OMITTED
    1. INTEREST CHARGEABLE IN CERTAIN CASES
    234A Interest for defaults in furnishing return of income
    234B Interest for defaults in payment of advance tax
    234C Interest for deferment of advance tax
    234D Interest on excess refund
    CHAPTER – XVIII RELIEF RESPECTING TAX ON DIVIDENDS IN CERTAIN CASES
    236 Relief to company in respect of dividend paid out of past taxed profits
    236A Relief to certain charitable institutions or funds in respect of certain dividends
    CHAPTER – XIX REFUNDS
    237 Refunds
    238 Person entitled to claim refund in certain special cases
    239 Form of claim for refund and limitation
    240 Refund on appeal, etc.
    242 Correctness of assessment not to be questioned
    243 Interest on delayed refunds
    244 Interest on refund where no claim is needed
    244A Interest on refunds
    245 Set off of refunds against tax remaining payable
    CHAPTER – XIXA SETTLEMENT OF CASES
    245A Definitions
    245B Income-tax Settlement Commission
    245BA Jurisdiction and powers of Settlement Commission
    245BB Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances
    245BC Power of Chairman to transfer cases from one Bench to another
    245BD Decision to be by majority
    245C Application for settlement of cases
    245D Procedure on receipt of an application under section 245C
    245DD Power of Settlement Commission to order provisional attachment to protect revenue
    245E Power of Settlement Commission to reopen completed proceedings
    245F Powers and procedure of Settlement Commission
    245G Inspection, etc., of reports
    245H Power of Settlement Commission to grant immunity from prosecution and penalty
    245HA Abatement of proceeding before Settlement Commission
    245HAA Credit for tax paid in case of abatement of proceedings
    245I Order of settlement to be conclusive
    245J Recovery of sums due under order of settlement
    245K Bar on subsequent application for settlement
    245L Proceedings before Settlement Commission to be judicial proceedings
    CHAPTER – XIX-B ADVANCE RULINGS
    245N Definitions
    245O Authority for advance rulings
    245P Vacancies, etc., not to invalidate proceedings
    245Q Application for advance ruling
    245R Procedure on receipt of application
    245RR Appellate authority not to proceed in certain cases
    245S Applicability of advance ruling
    245T Advance ruling to be void in certain circumstances
    245U Powers of the Authority
    245V Procedure of Authority
    CHAPTER XX APPEALS AND REVISION
    1. APPEALS TO DEPUTY COMMISSIONER/COMMISSIONER [APPEALS]
    246 Appealable orders
    246A Appealable orders before Commissioner (Appeals)
    248 Appeal by person denying liability to deduct tax in certain cases
    249 Form of appeal and limitation
    250 Procedure in appeal
    251 Powers of the Commissioner (Appeals)
    1. APPEALS TO APPELATE TRIBUNAL
    252 Appellate Tribunal
    253 Appeals to the Appellate Tribunal
    254 Orders of Appellate Tribunal
    255 Procedure of Appellate Tribunal
    257 Statement of case to Supreme Court in certain cases
    260 Effect to the decisions of Supreme Court and of the National Tax Tribunal
    1. APPEALS TO HIGH COURT
    260A Appeal to High Court
    260B Case before High Court to be heard by not less than two Judges
    1. APPELS TO SUPREME COURT
    261 Appeal to Supreme Court
    262 Hearing before Supreme Court
    1. REVISION BY COMMISSIONER
    263 Revision of orders prejudicial to revenue
    264 Revision of other orders
    1. GENERAL
    265 Tax to be paid notwithstanding reference, etc.
    266 Execution for costs awarded by Supreme Court
    267 Amendment of assessment on appeal
    268 Exclusion of time taken for copy
    269 Definition of “High Court”
    CHAPTER – XX-A ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER TO COUNTERACT EVASION OF TAX
    269A Definitions
    269AB Registration of certain transactions
    269B Competent authority
    269C Immovable property in respect of which proceedings for acquisition may be taken
    269D Preliminary notice
    269E Objections
    269F Hearing of objections
    269G Appeal against order for acquisition
    269H Appeal to High Court
    269I Vesting of property in Central Government
    269J Compensation
    269K Payment or deposit of compensation
    269L Assistance by Valuation Officers
    269M Powers of competent authority
    269N Rectification of mistakes
    269O Appearance by authorised representative or registered valuer
    269P Statement to be furnished in respect of transfers of immovable property
    269Q Chapter not to apply to transfers to relatives
    269R Properties liable for acquisition under this Chapter not to be acquired under other laws
    269RR Chapter not to apply where transfer of immovable property made after a certain date
    269S Chapter not to extend to State of Jammu and Kashmir
    CHAPTER XX-B REQUIREMENT AS TO MODE OF ACCEPTANCE PAYMENT OR REPAYMENT IN CERTAIN CASES TO COUNTERACT EVASION OF TAX
    269SS Mode of taking or accepting certain loans and deposits
    269T Mode of repayment of certain loans or deposits
    269TT Mode of repayment of Special Bearer Bonds, 1991
    CHAPTER XXI PENALTIES IMPOSABLE
    269U Commencement of Chapter
    269UA Definitions
    269UB Appropriate authority
    269UC Restrictions on transfer of immovable property
    269UD Order by appropriate authority for purchase by Central Government of immovable property
    269UE Vesting of property in Central Government
    269UF Consideration for purchase of immovable property by Central Government
    269UG Payment or deposit of consideration
    269UH Re-vesting of property in the transferor on failure of payment or deposit of consideration
    269UI Powers of the appropriate authority
    269UJ Rectification of mistakes
    269UK Restrictions on revocation or alteration of certain agreements for the transfer of immovable property or on transfer of certain immovable property
    269UL Restrictions on registration, etc., of documents in respect of transfer of immovable property
    269UM Immunity to transferor against claims of transferee for transfer
    269UN Order of appropriate authority to be final and conclusive
    269UO Chapter not to apply to certain transfers
    269UP Chapter not to apply where transfer of immovable property effected after certain date
    271 Failure to furnish returns, comply with notices, concealment of income, etc.
    271A Failure to keep, maintain or retain books of account, documents, etc.
    271AA Penalty for failure to keep and maintain information and document in respect of international transaction
    271AAA Penalty where search has been initiated
    271B Failure to get accounts audited
    271BA Penalty for failure to furnish report under section 92E
    271BB Failure to subscribe to the eligible issue of capital
    271C Penalty for failure to deduct tax at source
    271CA Penalty for failure to collect tax at source
    271D Penalty for failure to comply with the provisions of section 269SS
    271E Penalty for failure to comply with the provisions of section 269T
    271F Penalty for failure to furnish return of income
    271FA Penalty for failure to furnish annual information return
    271FB Penalty for failure to furnish return of fringe benefits
    271G Penalty for failure to furnish information or document under section 92D
    272A Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc.
    272AA Penalty for failure to comply with the provisions of section 133B
    272B Penalty for failure to comply with the provisions of section 139A
    272BB Penalty for failure to comply with the provisions of section 203A
    272BBB Penalty for failure to comply with the provisions of section 206CA
    273 False estimate of, or failure to pay, advance tax
    273A Power to reduce or waive penalty, etc., in certain cases
    273B Penalty not to be imposed in certain cases
    274 Procedure
    275 Bar of limitation for imposing penalties
    CHAPTER XXII OFFENCES AND PROSECUTION
    275A Contravention of order made under sub-section (3) of section 132
    275B Failure to comply with the provisions of clause (iib) of sub-section (1) of section 132
    276 Removal, concealment, transfer or delivery of property to thwart tax recovery
    276A Failure to comply with the provisions of sub-sections (1) and (3) of section 178
    276AB Failure to comply with the provisions of sections 269UC, 269UE and 269UL
    276B Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B
    276BB Failure to pay the tax collected at source
    276C Wilful attempt to evade tax, etc.
    276CC Failure to furnish returns of income
    276CCC Failure to furnish return of income in search cases
    276D Failure to produce accounts and documents
    277 False statement in verification, etc.
    277A Falsification of books of account or document, etc.
    278 Abetment of false return, etc.
    278A Punishment for second and subsequent offences
    278AA Punishment not to be imposed in certain cases
    278B Offences by companies
    278C Offences by Hindu undivided families
    278D Presumption as to assets, books of account, etc., in certain cases
    278E Presumption as to culpable mental state
    279 Prosecution to be at instance of Chief Commissioner or Commissioner
    279A Certain offences to be non-cognizable
    279B Proof of entries in records or documents
    280 Disclosure of particulars by public servants
    CHAPTER XXIII MISCELLENEOUS
    281 Certain transfers to be void
    281B Provisional attachment to protect revenue in certain cases
    282 Service of notice generally
    283 Service of notice when family is disrupted or firm, etc., is dissolved
    284 Service of notice in the case of discontinued business
    285B Submission of statements by producers of cinematograph films
    285BA Obligation to furnish annual information return
    287 Publication of information respecting assessees in certain cases
    287A Appearance by registered valuer in certain matters
    288 Appearance by authorised representative
    288A Rounding off of income
    288B Rounding off amount payable and refund due
    289 Receipt to be given
    290 Indemnity
    291 Power to tender immunity from prosecution
    292 Cognizance of offences
    292A Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply
    292B Return of income, etc., not to be invalid on certain grounds
    292C Presumption as to assets, books of account, etc.
    293 Bar of suits in civil courts
    293A Power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils
    293B Power of Central Government or Board to condone delays in obtaining approval
    294 Act to have effect pending legislative provision for charge of tax
    294A Power to make exemption, etc., in relation to certain Union territories
    295 Power to make rules
    296 Rules and certain notifications to be placed before Parliament
    297 Repeals and savings
    298 Power to remove difficulties
    SCHEDULES TO THE ACT
    I Insurance Business
    II Procedure for Recovery of Tax
    III Procedure for Distraint by AO/TRO
    IV A. RPF B. Approved Superannuation Funds C. Approved Gratuity Funds
    V List of Articles and Things
    VI Omitted
    VII A. Materials B. Groups of Associated Minerals
    VIII List of Industrially Backward States & UT
    IX Omitted
    X Omitted
    XI List of Articles or Things
    XII Processed Minerals or Ores
    XIII List of Articles or Things
    XIV List of Articles or Things or Operations


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