INCOME FROM BUSSINESS SECTIONS INCOMES Sec.28(ii) Compn. Recd in spl circumestances. G/P, Dis., Comm.
, KIP,Salary & Int. recd by Partner, CCS-revenue subsidy, Gift recd from client, Sec.28 Other income relating bussiness. Sec.41 Deemed Profits Sec.41(1) Recovery of Exp./Loss previously allowed. Sec.41(4) Recovery of Bad Debts previously allowed Sec.41(2) Amt. Recd by sale of Asset by Power Units following SLM method Sec.41(3) Amt. Recd by sale of Asset (previously used for S.Research) EXPENSES Sec.30 Rent,repair,tax and insurance of Building Sec.31 Rent, insurance of P & M and Furn. Sec.32 Depreciation Sec.33AB Tea/Coffee/Rubber (T/C/R) Sec.33ABA Petroleum & Natural Gas Sec.35 Scientific Research Sec.35A Cost of Patents & Copyrights Sec.35ABB Exp. on pur. Of license to operate Telecommunication Services Sec.35AC Contribution to Social & Economic Welfare Sec.35CCA Contribution for Rural Development Sec.35D Preliminary Expenses Sec.35DD Amalgamation & Demerger exp. Sec.35DDA Voluntary Retirement Compensation Deduction in 5 instalments (5Yrs) Sec.36(1) CI2B2A FR Sec.37(1) General Deductions Expenses expressly disallowed Sec.37(2B) Adv in any magazine or pamphlet of political party Sec.40(A) Income Tax, Wealth Tax, FBT,STT,Exp paid without deducting TDS Sec.40(B) Remuneration from P. Firms (at the extent allowed to P. Firms) Sec.40A(2) Excessive payment to relatives Sec.40A(3) Payment upto Rs.20000/- allowed - Cash/Chq. Payment more than Rs.20000/- by crossed chq allowed / not allowed paid by cash or bearer chq. Sec.40A(7) Provision for Gratuity ( similarly no reserve & provision) Sec.43B Expenses not paid upto the due date of filling of return (TB LIC)* SPECIAL PROVISIONS Sec.44AA Compulsory maintenance of Books of A/cs Sec.44AB Compulsory Audit (Tax Audit) Sec.44AD Spl prov for Civil Cons Business Sec.44AE Spl prov for Transport Business Sec.44AF Spl prov for Retail Business SPECIAL PROVISIONS FOR NRI / FOREIGN COMPANIES Sec.44B Spl prov for NRI's Shipping Business Sec.44BB Spl prov for Business of exploration of Mineral Oil Sec.44BBA Spl prov for Business of operation of Air Crafts Sec.44BBB Spl prov for Business of Civil Projects Sec.44C Deduction of H.O exp in case of NRI's Sec.44DA Income by way of royalty (agr entered into 31-03-03) Sec.44DB Deduction is case of Business re-org of Co-op Banks INCOME FROM UNDISCLOSED SOURCES Sec.68 Cash Cr. Sec.69 Unexplained Inv. Sec.69B Amt of inv etc not fully disclosed in books of a/cs Sec.69A Unexplained money etc Sec.69C Unexplained exp etc Sec.69D Amt borrowed or repaid on hundi MISCELLANEOUS Sec.43(1) Actual cost for the purpose of Dep. Sec.2(11) Block of Assets means group of assets having same rate of dep within the same class of assets Sec.10(2A) Share of Profit of Partnership exempt under this section.
T- Taxes B- Bonus L-Leave Encashment I- Interest on loan taken from Public Financial Instituition & State Financial Corporation C- Contribution to PF
CAPITAL GAINS SECTIONS Sec.2(14) Sec.2(47) Sec.2(42C) Sec.2(22)(C) Sec.45(1) Sec.45(2) Sec.45(3) Sec.45(4) Sec.45(5) EXEMPTION Sec.54 Sec.54B Sec.54D Sec.54EC Sec.54F Sec.54G Sec.54GA Sec.45(1A) Sec.46(1) Sec.46(2) Sec.47 Sec.49(1) Sec.54B Sec.10(38) Sec.10(37) Sec.111A Sec.112 Sec.50C Defn of Cap asset Defn of Trf. Slump Sale SH's acc profit (Res) deemed dividend taxable under this sec. Conditions Conversion of asset into stock in trade Partner------------------>P.Firm (A) P.Firm---------------->Partner (B) Compulsory acquisition
Exemption for Resi House (Non-Dep) Exemption for Urban agri land (Non-Dep) Exemption for Industrial L & B on compulsory acquisition (Dep) Exe. For any long term capital assset (NHAI/REC) (Non-Dep) Exe. For any LTCA (except Resi. House Non-Dep) Exe. For L/B/P/M in urban area (while shifting to rural area,dep) Exe. For L/B/P/M in any area (while shifting to SEZ,dep) CG will be calculated (destroyed by NRFE) CG on liquidation of Company [Cap. Assets exempt u/s 46(1) Taxable from SH's point of view but not regd share) Exempt trf. Computation of CG after exempt trf. Slump Sale LTCG exempt - Eq.,EQF sold through Recognised Stk Exch. Urban Agr.land compulsory acquisition exempt (to Ind & HUF but land should be used for atleast 2 yrs. By the assessee/parents before the dt of trf. STCG taxable @ 15% Eq.,EOF sold through RSE LTCG taxable @ 20% (Ind) or @ 10% (Not-Ind) for LT listed securities & units of UTI/MF/Eq/EOF not through RSE Real estate transactions 1. Value adopted by Stamp Duty Authority for Stamp Duty purpose 2. Declared Consideration Reference to Valuation Officer.
Sec.55A
Sec.64(1)(iv) Sec.64(1)(vii) Sec.64(1)(vi) Sec.64(1)(viii) Sec.64(2) Sec.64(1A) Sec.64(1)(ii)
CLUBBING OF INCOME Trf. To spouce Trf. To any other person for the benefit of spouce Trf. To son's wife Trf. To any other person for the benefit of Son's wife Trf. To HUF Income of Minor Child Remn of Spouce
SET-OFF & C/F OF LOSSES Sec.70 Sec.71 Inter Source Adj Inter Head Adj Losses IFS IFHP IFB : Normal Speculation O&M CG : LTCG STCG IFOS
Income Loss not possible Any income Any except IFS Speculation O&M LTCG STCG / LTCG Any income
Carry fwd. Sec.71B Sec.72 Sec.73 Sec.74 Sec.74A Sec 80 Type of Loss Loss under IFHP Business (Normal) Business (Speculation) LTCG loss STCG loss Loss from act of O & M race horses To be adj agst. Same head Same head Same income LTCG ST/LTCG Same income Period of c/f 8 yrs 8 yrs 4 yrs 8 yrs 8 yrs 4 yrs Filing Ret. "In time" Not necessary Necessary Necessary Necessary Necessary Necessary
Sec.72A DEEMED DIVIDEND Sec.2(22)(a) Sec.2(22)(b) Sec.2(22)(c) Sec.2(22)(d) Sec.2(22)(e)
Following losses cannot be c/f if the ret is not filed in time 1. Business loss (both) 2. Loss from O & M 3. Capital losses Conditions for c/f of losses in case of Amalgamation
Release of Company's Assets Bonus Liquidation (Close) Reduction of Sh Cap Loan / advances by closely held co (exception)
ASSESSMENT OF CHARITABLE TRUST Sec.2(15) Defn of Ch. Trust Sec.11 & 12 Cond for exemptions Sec.12A & AA Regn of Trust POLITICAL PARTY Sec.13A
U/S follow income fully ex.-IFHP,CG,IFOS,Voluntary Contribution
ADVANCE TAX Sec.139A Interest Sec.234A Sec.234B Sec.234C
PAN U/s - for late filing of return U/s - for short payt or non-payt of advance tax For deferment of adv tax (not paying as per due date)
RETURNS & ASSESSMENT Sec.139(1) Voluntary return Sec.139(4A) Return by Ch. Trust Sec.139(4B) Return by Political party Sec.139(3) Return of loss Sec.139(4) Belated return Sec.139(5) Revised return Sec.139(9) Defective return Sec.140 Signing of Return Sec.140A Self Assessment Sec.142 Inquiry before assessment Sec.142(1) Sending notice (RAI Notice) Sec.142(2) Making inquiry Sec.142(2A/2B/2C/2D) Spl audit Sec.143(1) Summary assessment Sec.143(2 & 3) Regular Assessment / Scrutiny Assessment (notice 2) Sec.144 Best Judgement assessment / Ex-Parte Ass.
INCOME FROM SALARY Retirement Benefits Sec.10(10) Gratuity (max.Rs.3,50,000 3 conditions) POGA - latest (B+DA both) otherwise avg. B+DA (in terms) + TC Sec.10(10A) Pension Sec.10(10AA) Leave Salary (max Rs.300000 4 conditions) Avg. B+DA(in terms)+TC Sec.10(10B) Retrenchment Compensation (max 500000 3 conditions) Sec.10(10C) VRS (max 500000 4 conditions) latest B+DA(in terms)+TC PF Sec.10(11) Sec.10(12) Sec.10(13) ALLOWANCE Sec.10(13A) Sec.10(14)
Statutory Provident Fund Recognised Provident Fund Super Annuation Fund
House Rent Allowance (HRA) Other Allowances
PERQUISITES Sec.10(5) Leave Travel Concession Sec.10(16) Scholarship- Perquisite
INCOME FROM HOUSE PROPERTY Sec.23(2)(a) Sec.24 Sec.25A Sec.25AA Sec.25B u/s NAV of SOP (R) is always NIL Standard Dedn Recovery of Unrealised Rent Conditions of UR allowed as dedution Arrears of rent
FROM SALARY
OGA - latest (B+DA both) otherwise avg. B+DA (in terms) + TC
s) Avg. B+DA(in terms)+TC 3 conditions) DA(in terms)+TC
M HOUSE PROPERTY
INCOME FROM HOUSE PROPERTY Sec.23(2)(a) u/s NAV of SOP (R) is always NIL Sec.24 Standard Dedn Sec.25A Recovery of Unrealised Rent Sec.25AA Conditions of UR allowed as dedution Sec.25B Arrears of rent
