This document discusses income from other sources under section 56 of the Indian Income Tax Act. It provides details about the types of incomes chargeable under this section, including dividend income, casual income from lottery/racing winnings, and gifts received without or for inadequate consideration. Specific examples are given around gifts received in cash or kind and the taxability of such gifts. The document also discusses tax rates for different types of other incomes and concepts of grossing up for incomes charged at presumptive rates. Overall, the document provides an overview of the taxation of various non-business incomes under the head "income from other sources" in India.
The document discusses the authorities under the Income Tax Act and their powers. It defines the various income tax authorities like Central Board of Direct Taxes, Principal Directors General of Income Tax, Income Tax officers and their powers. These include powers of discovery, inspection, summons, production of documents and issuing commissions. It also discusses the constitution and functions of the Central Board of Direct Taxes and the bifurcation of the tax boards in 1964. Finally, it mentions the provisions related to assessing officers, search and seizure operations and the functioning of Centralized Processing Centers.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
This presentation introduces electronic filing or e-filing of tax returns. E-filing involves submitting tax returns over the internet using approved tax preparation software. There are three ways to e-file - with a digital signature so no paper return is needed, without a digital signature and filing an ITR-5 verification form, or through an e-return intermediary. E-filing has benefits over paper filing like being able to file from anywhere, fewer errors, faster processing, and less malpractice. Common e-filing involves obtaining an e-format file, filling it out, validating it, and uploading it. The website for e-filing is https://www.incometaxindiaefiling.gov.in.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Losses can be set off against income of the same year or carried forward to future years to offset income. Set off of losses occurs either intra-head, where losses of one source offset income of another source within the same head, or inter-head, where losses offset income across different heads. Strict rules govern which losses can offset which incomes both currently and when carried forward. House property losses can be carried forward 8 years against house property income, while long term capital losses can only offset long term capital gains.
This document discusses tax planning, tax avoidance, tax evasion, and tax management. Tax planning aims to reduce tax burden by taking advantage of legal exemptions and deductions. Tax avoidance exploits loopholes in tax laws, while tax evasion illegally hides income or falsifies records to reduce tax liability. Tax management ensures compliance with tax laws through record keeping, filing returns, and paying taxes on time. The goal is to avoid penalties by fulfilling requirements to avail tax benefits, not to illegally dodge taxes.
- Clubbing of income provisions allow the income of one person to be taxed in the hands of another person if certain conditions are met (Sections 60-64).
- Key situations include transfer of income without asset transfer, revocable transfers of assets/income, income of a spouse from the other spouse's business, income from assets transferred to a spouse or minor children, and income of HUF property.
- The objectives are to prevent tax avoidance by transferring income/assets to family members while still enjoying the benefits. Income is clubbed and taxed in the transferor's hands in many situations.
The document discusses key aspects of income from business and profession under the Income Tax Act of 1961 in India. It defines business and profession, outlines the basis of charge for income from business/profession, and describes various deductions that are allowed under sections 30-37 of the Act such as rent, repairs, insurance, depreciation, bad debts, and more. It provides explanations and conditions for claiming many of these deductions.
The document discusses the authorities under the Income Tax Act and their powers. It defines the various income tax authorities like Central Board of Direct Taxes, Principal Directors General of Income Tax, Income Tax officers and their powers. These include powers of discovery, inspection, summons, production of documents and issuing commissions. It also discusses the constitution and functions of the Central Board of Direct Taxes and the bifurcation of the tax boards in 1964. Finally, it mentions the provisions related to assessing officers, search and seizure operations and the functioning of Centralized Processing Centers.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
This presentation introduces electronic filing or e-filing of tax returns. E-filing involves submitting tax returns over the internet using approved tax preparation software. There are three ways to e-file - with a digital signature so no paper return is needed, without a digital signature and filing an ITR-5 verification form, or through an e-return intermediary. E-filing has benefits over paper filing like being able to file from anywhere, fewer errors, faster processing, and less malpractice. Common e-filing involves obtaining an e-format file, filling it out, validating it, and uploading it. The website for e-filing is https://www.incometaxindiaefiling.gov.in.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Losses can be set off against income of the same year or carried forward to future years to offset income. Set off of losses occurs either intra-head, where losses of one source offset income of another source within the same head, or inter-head, where losses offset income across different heads. Strict rules govern which losses can offset which incomes both currently and when carried forward. House property losses can be carried forward 8 years against house property income, while long term capital losses can only offset long term capital gains.
This document discusses tax planning, tax avoidance, tax evasion, and tax management. Tax planning aims to reduce tax burden by taking advantage of legal exemptions and deductions. Tax avoidance exploits loopholes in tax laws, while tax evasion illegally hides income or falsifies records to reduce tax liability. Tax management ensures compliance with tax laws through record keeping, filing returns, and paying taxes on time. The goal is to avoid penalties by fulfilling requirements to avail tax benefits, not to illegally dodge taxes.
- Clubbing of income provisions allow the income of one person to be taxed in the hands of another person if certain conditions are met (Sections 60-64).
- Key situations include transfer of income without asset transfer, revocable transfers of assets/income, income of a spouse from the other spouse's business, income from assets transferred to a spouse or minor children, and income of HUF property.
- The objectives are to prevent tax avoidance by transferring income/assets to family members while still enjoying the benefits. Income is clubbed and taxed in the transferor's hands in many situations.
The document discusses key aspects of income from business and profession under the Income Tax Act of 1961 in India. It defines business and profession, outlines the basis of charge for income from business/profession, and describes various deductions that are allowed under sections 30-37 of the Act such as rent, repairs, insurance, depreciation, bad debts, and more. It provides explanations and conditions for claiming many of these deductions.
The document discusses income from house property under the Indian Income Tax Act. It defines income from house property as the annual value of any buildings or lands owned by an assessee. It provides details on computation of gross annual value, deductions allowed, treatment of self-occupied properties, and exempted incomes from house property. The key steps involved in computing income from house property are determining the annual value, calculating the net annual value, and claiming allowed deductions.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
The document discusses Hindu Undivided Family (HUF), a form of business organization found only in India. A HUF is headed by a Karta who controls and manages the family business. Other members are co-parceners who have birthrights in the family property. A HUF enjoys continuity as the business passes from one generation to the next. It provides benefits like ease of formation, continuity of operations, and increased loyalty but also has limitations like limited capital and managerial talents. The document outlines the key characteristics, taxation treatment, and pros and cons of the HUF structure.
The document contains information about Dr. N.G.P. Arts and Science College including its address and website. It provides definitions of short-term capital gains and long-term capital gains based on the holding period. It also includes examples of calculating capital gains and indexed cost of acquisition or improvement. There are sections on exemptions available under sections 10 and 54 of the Income Tax Act and examples of computing taxable capital gains in different scenarios.
The document discusses factoring and forfaiting. It provides details on:
1) Factoring involves the sale of book debts or invoices by a firm to a financial institution for an immediate payment, with the factor taking on responsibility for collection.
2) Forfaiting deals specifically with receivables related to deferred payment exports, where the exporter's rights are purchased without recourse.
3) Both mechanisms provide liquidity to exporters and absorb risks like political or conversion risks associated with cross-border receivables.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
The document provides an overview of the direct tax system in India. It discusses how direct taxation has existed in India since ancient times as described in texts like the Manu Smriti and Arthashastra. The modern Indian tax system is based on these ancient principles. The key aspects of direct tax include the Income Tax Act of 1961 which levies tax on income under various heads. Direct taxes are mandatory contributions paid by citizens and used by the government for public benefits like infrastructure and development. The tax system in India has both central and state level components with both levying various direct and indirect taxes.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
Scope of Total Income - Problems and Solutions (3)RajaKrishnan M
The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment
1) The document discusses the taxation of capital gains in India, including the conditions required for a capital gain to be chargeable, the definitions of capital assets and capital gains, and the computation of capital gains.
2) It provides details on the types of capital assets (short term and long term), the meaning of "transfer", and the different types of capital gains (short term and long term).
3) The computation of capital gains involves subtracting the cost of acquisition and cost of improvements from the full value of consideration, with the costs indexed for inflation in the case of long term capital assets.
INCOME TAX- Aggregation of Income/ Clubbing of the income under INCOME TAX ACT,1961
Income of other persons to be included in the income of individual( Section 60-65)
Income received from Firm assessed as Firm And Association of Persons (Section 66-67)
Deemed Income (Section 68-69)
Transfer of Income without Transfer of Assets[Sec. 60]
Revocable Transfer of Assets [Sec. 61]
This document provides an overview of the taxation of profits and gains from business or profession under the Indian Income Tax Act. Some key points:
- Profits from any business, profession, compensation payments, export incentives, benefits from business, interest from a partnership, and more are taxable under this head.
- Deductions are allowed for expenses like rent, repairs, depreciation, research and development, acquiring telecom licenses, and more.
- Depreciation can be claimed on buildings, machinery, vehicles and more. Additional depreciation is available for new machinery.
- Certain payments must be on a paid basis per Section 43B, like taxes, contributions, bonuses to claim deductions.
The document discusses the scope of total income based on a taxpayer's residential status in India as a resident and ordinarily resident, resident but not ordinarily resident, or non-resident. It outlines the different types of income that are taxable or not taxable in India for each residential status, based on factors such as where the income was earned and received, and whether it relates to a business or profession in or outside of India. The three main considerations for determining the scope of total income and tax incidence are the taxpayer's residential status, place of accrual or receipt of income, and the time at which income had accrued or was received.
This document provides an overview of income tax in India. It begins with a brief history of income tax, explaining its origins in ancient India and its modern introduction in 1860. It then covers key topics like types of income, tax rates, exemptions, deductions, filing requirements and deadlines. The purpose of the tax is to generate revenue for the government to fund public services like healthcare, education, infrastructure and security. Filing taxes correctly and on time is important for both citizens and the systems that rely on tax revenue.
Unit II Tax Planning and Company PromotionDayanand Huded
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
This document discusses set off and carry forward of losses under the Indian Income Tax Act. It provides details on:
1. Set off of losses from one source of income against income from another source under the same head (intra-head set off) and against income from other heads (inter-head set off), subject to certain exceptions.
2. Carrying forward unadjusted losses to future years for set off against income of those years, with time limits varying from 4 to 8 years depending on the head.
3. Key points around set off and carry forward of losses from different income sources like house property, business, capital gains, and owning race horses.
This document provides information about Chapter 7 of the textbook Prentice Hall's Federal Taxation 2015 Comprehensive, 28e. It lists 53 multiple choice questions related to itemized deductions for medical expenses, taxes, interest, and charitable contributions. The questions assess understanding of which expenses are deductible and how to calculate allowable deductions.
This document provides information about Chapter 7 of the textbook Prentice Hall's Federal Taxation 2015 Comprehensive, 28e. It lists 53 multiple choice questions related to itemized deductions for medical expenses, taxes, interest expenses, and charitable contributions. The questions assess understanding of which expenses are deductible and how to calculate allowable deductions.
The document discusses income from house property under the Indian Income Tax Act. It defines income from house property as the annual value of any buildings or lands owned by an assessee. It provides details on computation of gross annual value, deductions allowed, treatment of self-occupied properties, and exempted incomes from house property. The key steps involved in computing income from house property are determining the annual value, calculating the net annual value, and claiming allowed deductions.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
The document discusses Hindu Undivided Family (HUF), a form of business organization found only in India. A HUF is headed by a Karta who controls and manages the family business. Other members are co-parceners who have birthrights in the family property. A HUF enjoys continuity as the business passes from one generation to the next. It provides benefits like ease of formation, continuity of operations, and increased loyalty but also has limitations like limited capital and managerial talents. The document outlines the key characteristics, taxation treatment, and pros and cons of the HUF structure.
The document contains information about Dr. N.G.P. Arts and Science College including its address and website. It provides definitions of short-term capital gains and long-term capital gains based on the holding period. It also includes examples of calculating capital gains and indexed cost of acquisition or improvement. There are sections on exemptions available under sections 10 and 54 of the Income Tax Act and examples of computing taxable capital gains in different scenarios.
The document discusses factoring and forfaiting. It provides details on:
1) Factoring involves the sale of book debts or invoices by a firm to a financial institution for an immediate payment, with the factor taking on responsibility for collection.
2) Forfaiting deals specifically with receivables related to deferred payment exports, where the exporter's rights are purchased without recourse.
3) Both mechanisms provide liquidity to exporters and absorb risks like political or conversion risks associated with cross-border receivables.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
The document provides an overview of the direct tax system in India. It discusses how direct taxation has existed in India since ancient times as described in texts like the Manu Smriti and Arthashastra. The modern Indian tax system is based on these ancient principles. The key aspects of direct tax include the Income Tax Act of 1961 which levies tax on income under various heads. Direct taxes are mandatory contributions paid by citizens and used by the government for public benefits like infrastructure and development. The tax system in India has both central and state level components with both levying various direct and indirect taxes.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
Scope of Total Income - Problems and Solutions (3)RajaKrishnan M
The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment
1) The document discusses the taxation of capital gains in India, including the conditions required for a capital gain to be chargeable, the definitions of capital assets and capital gains, and the computation of capital gains.
2) It provides details on the types of capital assets (short term and long term), the meaning of "transfer", and the different types of capital gains (short term and long term).
3) The computation of capital gains involves subtracting the cost of acquisition and cost of improvements from the full value of consideration, with the costs indexed for inflation in the case of long term capital assets.
INCOME TAX- Aggregation of Income/ Clubbing of the income under INCOME TAX ACT,1961
Income of other persons to be included in the income of individual( Section 60-65)
Income received from Firm assessed as Firm And Association of Persons (Section 66-67)
Deemed Income (Section 68-69)
Transfer of Income without Transfer of Assets[Sec. 60]
Revocable Transfer of Assets [Sec. 61]
This document provides an overview of the taxation of profits and gains from business or profession under the Indian Income Tax Act. Some key points:
- Profits from any business, profession, compensation payments, export incentives, benefits from business, interest from a partnership, and more are taxable under this head.
- Deductions are allowed for expenses like rent, repairs, depreciation, research and development, acquiring telecom licenses, and more.
- Depreciation can be claimed on buildings, machinery, vehicles and more. Additional depreciation is available for new machinery.
- Certain payments must be on a paid basis per Section 43B, like taxes, contributions, bonuses to claim deductions.
The document discusses the scope of total income based on a taxpayer's residential status in India as a resident and ordinarily resident, resident but not ordinarily resident, or non-resident. It outlines the different types of income that are taxable or not taxable in India for each residential status, based on factors such as where the income was earned and received, and whether it relates to a business or profession in or outside of India. The three main considerations for determining the scope of total income and tax incidence are the taxpayer's residential status, place of accrual or receipt of income, and the time at which income had accrued or was received.
This document provides an overview of income tax in India. It begins with a brief history of income tax, explaining its origins in ancient India and its modern introduction in 1860. It then covers key topics like types of income, tax rates, exemptions, deductions, filing requirements and deadlines. The purpose of the tax is to generate revenue for the government to fund public services like healthcare, education, infrastructure and security. Filing taxes correctly and on time is important for both citizens and the systems that rely on tax revenue.
Unit II Tax Planning and Company PromotionDayanand Huded
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
This document discusses set off and carry forward of losses under the Indian Income Tax Act. It provides details on:
1. Set off of losses from one source of income against income from another source under the same head (intra-head set off) and against income from other heads (inter-head set off), subject to certain exceptions.
2. Carrying forward unadjusted losses to future years for set off against income of those years, with time limits varying from 4 to 8 years depending on the head.
3. Key points around set off and carry forward of losses from different income sources like house property, business, capital gains, and owning race horses.
This document provides information about Chapter 7 of the textbook Prentice Hall's Federal Taxation 2015 Comprehensive, 28e. It lists 53 multiple choice questions related to itemized deductions for medical expenses, taxes, interest, and charitable contributions. The questions assess understanding of which expenses are deductible and how to calculate allowable deductions.
This document provides information about Chapter 7 of the textbook Prentice Hall's Federal Taxation 2015 Comprehensive, 28e. It lists 53 multiple choice questions related to itemized deductions for medical expenses, taxes, interest expenses, and charitable contributions. The questions assess understanding of which expenses are deductible and how to calculate allowable deductions.
Acc 555 week 11 final exam – strayer newlizabonilla
This document provides information about Chapter 7 of the textbook Prentice Hall's Federal Taxation 2015 Comprehensive, 28e. It lists 53 multiple choice questions related to itemized deductions for medical expenses, taxes, interest expenses, and charitable contributions. The questions assess understanding of which expenses are deductible and how to calculate allowable deductions.
Acc 555 week 11 final exam – strayer newsweetsour2017
This document provides a summary of 51 multiple choice questions from an ACC 555 final exam covering chapters 7 through 14 of a tax textbook. The questions cover topics related to itemized deductions including medical expenses, taxes, interest, charitable contributions, and calculating deductible amounts. Sample expenses and scenarios are provided to illustrate how to determine deductible amounts for various itemized deductions.
- Gifts received by an individual or HUF are taxable based on their type (monetary, movable property, immovable property) and value.
- Monetary gifts over Rs. 50,000 in aggregate value annually are taxable, unless received from relatives or on occasions like marriage.
- Gifts of immovable property are taxable if their stamp duty value exceeds Rs. 50,000, unless received from relatives or on marriage.
1) This document provides a 40 question multiple choice exam covering various topics in individual taxation including deductions for medical expenses, taxes, interest expenses, and charitable contributions.
2) Key points covered include requirements for medical expenses to be deductible, what qualifies as medical care, deductibility of interest expenses depending on the purpose of the debt, and limitations on deductions for charitable contributions.
3) The exam tests understanding of tax rules regarding different types of expenses and contributions that may be deductible on an individual tax return.
This document provides answers to an ACC 555 Week 11 Final Exam. It addresses 40 multiple choice questions related to individual income tax deductions, including medical expenses, taxes, interest expenses, and charitable contributions. Key details covered include the medical expense deduction threshold, deductibility of various medical costs, qualifications for deducting interest, limitations on charitable deductions, and more.
This document provides answers to an ACC 555 Week 11 Final Exam. It addresses 40 multiple choice questions related to individual income tax deductions, including medical expenses, taxes, interest expenses, and charitable contributions. Key details covered include the medical expense deduction threshold, deductibility of various medical costs, types of deductible interest, limits on charitable deductions, and carryforward rules for excess contributions.
Mr. X's gross total income for AY 2015-16 was Rs. 500,000. He paid Rs. 17,000 in medical insurance premiums for himself and his wife. He spent Rs. 15,000 for medical treatment of his disabled dependent sister. He also spent Rs. 30,000 for medical treatment of his wife who has cancer. After claiming deductions of Rs. 17,000 under Section 80D, Rs. 15,000 under Section 80DDb, and Rs. 30,000 under Section 80DDB, his total income for AY 2015-16 will be Rs. 438,000.
Deemed income refers to amounts that are treated as taxable income even though they may not meet the normal definition of income. The Income Tax Act extends the definition of income to include various receipts such as capital gains, voluntary contributions, compensation received, insurance surplus, and windfall gains.
Some key types of deemed income discussed in the document include deemed dividends from closely-held companies, income from transferred assets that is clubbed with the transferor's income, gifts exceeding certain thresholds, consideration received for shares issued by closely-held companies above fair market value, unexplained cash credits, unexplained investments/expenditures/money, and certain provident fund contributions and payments.
This document provides an overview of how trusts are assessed for income tax purposes in India. It discusses the definition of charitable and religious purposes, the sections of the Income Tax Act that are applicable to trusts (sections 11-13), and what is not applicable. It outlines the scheme of section 11 regarding assessment of trusts, including the conditions for income to be exempt from tax, accumulation of income rules, and situations that could lead to withdrawal of tax benefits. It provides details on eligible institutions, specific cases where benefits may be provided to specified persons, and how tax is charged.
kdda constitution final draft _e_ for resolution 2013 - without markupSahr O Fasuluku
The document is a draft constitution for the Kono District Development Association UK. It outlines the organization's objectives, which include implementing community projects and services in the Kono District of Sierra Leone and the UK to benefit descendants of the Kono District. It details membership eligibility and termination, as well as governance structures like trustee roles and responsibilities, general meetings, dissolution procedures, and the process for amending the constitution.
This document discusses various ways to align text and numbers within cells in Microsoft Excel, including using the ribbon, keyboard shortcuts, and the Format Cells dialog box. It provides details on how to horizontally and vertically align text to the top, middle, bottom, left, right, or center of a cell. It also describes how to change text orientation, indentation, justification, and distribution. The Format Cells dialog box allows additional alignment options like filling a cell with text, centering text across selections, and changing text direction from left-to-right to right-to-left.
This document provides an overview of the key features and functions of Microsoft Word 2013. It describes the main sections of the Word interface, including the ribbon, tabs, groups, commands, rulers, zoom controls, views, and backstage view. It also explains how to get started with Word 2013 and open, save, and close documents.
This document provides an overview of the Microsoft Word application. It covers topics such as creating and opening documents, mouse and keyboard operations, navigating the Word interface including the ribbon and quick access toolbar, and formatting text and paragraphs. The document also discusses templates in Word and how they allow preconfigured settings to be applied to new documents for consistency.
1) Business income is computed by adjusting the net profit as shown in the profit and loss account by adding back inadmissible expenses and deducting allowable expenses not accounted in the profit and loss account and income not taxable under the head 'profits and gains from business or profession'.
2) Several examples are given showing the computation of business income by making the prescribed additions and deductions like salary, interest, donations, depreciation, income from other heads etc.
3) House property income is also computed by deducting standard deduction and interest on home loan from annual rent received in case of let out and self-occupied properties respectively.
Forms of organisation non-corporate enterprisespremarhea
This document summarizes different forms of business organization in India. It discusses sole proprietorships, partnership firms, and joint Hindu family firms. Some key points covered are:
- Sole proprietorships are owned and managed by one person who has unlimited liability. They are easy to form but have limited capital and managerial ability.
- Partnership firms require an agreement between partners to share profits and have features like implied agency and unlimited liability of partners. They allow for larger capital but can lack stability.
- Joint Hindu family firms are formed by operation of law between members of a Hindu undivided family. They provide continuity but can have restricted membership and lack of incentive or stability.
The document provides examples of computing taxable professional income for different professionals - a doctor, chartered accountant, lawyer, and medical practitioner. It shows how to calculate professional receipts and allowable professional expenses to determine the net professional gain or income based on the accounting system and other details provided. The computations deduct expenses like rent, salary, depreciation allowances, and other costs from the total receipts to arrive at the taxable professional income.
The document provides examples of computing professional income for different professionals including doctors, chartered accountants, lawyers, and medical practitioners. It shows how to calculate professional receipts and deduct allowable professional expenses to determine the taxable professional gain. Expenses include rent, salaries, depreciation, cost of medicines/supplies, and more. The net professional income is calculated by deducting total expenses from total receipts.
The document defines business and profession and provides examples of computation of business income under various scenarios. It discusses adding inadmissible expenses and deducting allowable expenses not debited in arriving at business income. It also provides an example of computation of house property income where there is a let out property and self-occupied property with a loss.
Forms of organisation - non-corporate enterprisespremarhea
This document summarizes different forms of business organization in India. It discusses sole proprietorships, partnership firms, and joint Hindu family firms. Some key points covered are:
- Sole proprietorships are owned and controlled by one person who has unlimited liability. They are easy to form but have limited capital and managerial ability.
- Partnership firms require an agreement between partners to share profits and have implied agency and unlimited liability unless otherwise agreed. They allow for larger capital but can lack stability.
- Joint Hindu family firms are formed by operation of Hindu law between co-parceners of a family. They provide continuity but can lack incentive and stability if mismanaged by the head of the family.
This document provides an overview of the nature of business. It defines business as an organization that obtains resources like funds, labor, and equipment to provide goods or services to customers in exchange for money. The document outlines key characteristics of business like the sale of goods/services, continuity, and profit motive. It also discusses the components/systems of business including personnel, finance, marketing, and production functions. The primary objective of modern business is stated as making a profit, with secondary objectives like creating customers, innovating new products, providing value, employment, and fair returns. Principles of organization, essentials of success, qualities of successful businessmen, and business ethics are also summarized.
1. Mr. Prashant went to Germany for a diploma course from August 2020 to February 2021. As he was out of India for more than 182 days, his residential status for FY 2020-2021 is non-resident.
2. An individual was in India for 185 days in FY 2020-2021, 15 days in 2019-2020, and 26 days in 2018-2019. As the stay in India was less than 182 days in the last 2 years, the residential status for AY 2021-2022 is non-resident.
3. Mr. Rohan, a foreign national, has been in India for more than 120 days in 5 of the last 6 years. Therefore, his residential
1. The document discusses the residential status of individuals, HUFs, AOPs, and firms under the Indian Income Tax Act. It provides examples and solutions for determining residential status based on the number of days spent in India and the location from which business affairs are controlled.
2. Residential status is determined based on satisfying conditions for being a resident under section 6(1) or by being ordinarily resident as defined in section 6(6).
3. Location of control and management is the determining factor for residential status of HUFs, AOPs and firms, regardless of the residential status of members.
The document discusses the residential status rules for individuals, HUFs, firms, AOPs, and companies in India for income tax purposes. For individuals, residential status depends on the number of days spent in India in the relevant fiscal year or previous years. A HUF's residential status is based on the residential status of the Karta. For firms, AOPs, and other persons, residential status is determined by where their control and management is located. All Indian companies are considered residents, while foreign companies may be resident or non-resident depending on where their control and management is located.
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- Tables are presented showing the taxable income for three individuals - Mr. X, Mr. Devilal, and Mr. Deepak - under each residential status. The types of incomes included business income, agriculture, salary, house property, capital gains, and more.
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This document provides an overview of basic income tax concepts in India. It defines key terms like assessee, previous year, assessment year, and heads of income. It explains the different types of taxes in India including direct and indirect taxes. It also outlines the criteria for determining an individual's residential status for income tax purposes as normal resident, resident but not ordinarily resident, or non-resident. Specific examples are provided to illustrate how to determine an individual's residential status based on their period of stay in India.
This document provides an introduction to income tax in India. It discusses why taxes are paid, what the government does with tax revenue such as healthcare, education, national defense, and welfare programs. It defines key aspects of Indian taxation including that it is compulsory, imposed by the government, and not a voluntary donation. The major sources of tax revenue are income, wealth, sales, and expenditures related to service, production, imports and exports. The constitution outlines which levels of government can tax which areas. The history of income tax in India is also briefly discussed.
The document discusses customs duty in India. It provides definitions and explanations of key terms:
1) Customs duty refers to taxes imposed on goods transported across international borders. Duties are determined based on factors like where goods were acquired or manufactured.
2) There are different types of customs duties including basic customs duty, additional customs duty, protective duty, and anti-dumping duty. Drawback allows refunds of import duties paid on goods that are later exported.
3) Sections 74-76 of the Customs Act cover duty drawback, allowing refunds of duties paid on imported goods that are re-exported, and on imported materials used to manufacture exported goods.
The document discusses various methods of financing for businesses. It describes capital structure as the combination of debt and equity used to finance a company's assets. It then discusses three main methods of financing - equity financing, debt financing, and lease financing. Equity financing involves selling ownership stakes, debt financing involves taking loans that must be repaid with interest, and lease financing allows using assets without ownership through rental agreements.
Capital budgeting involves planning expenditures for long-term assets that provide returns over several years. It is an important process that requires evaluating projects carefully due to their large size, long-term implications, and irreversible nature. Key aspects of capital budgeting include identifying and evaluating investment proposals, determining which provide the highest expected rates of return, and preparing a capital expenditure budget. Various techniques can be used to evaluate projects, including payback period, accounting rate of return, net present value, internal rate of return, and risk-adjusted methods that account for uncertainty in projected cash flows.
MATATAG CURRICULUM: ASSESSING THE READINESS OF ELEM. PUBLIC SCHOOL TEACHERS I...NelTorrente
In this research, it concludes that while the readiness of teachers in Caloocan City to implement the MATATAG Curriculum is generally positive, targeted efforts in professional development, resource distribution, support networks, and comprehensive preparation can address the existing gaps and ensure successful curriculum implementation.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
How to Build a Module in Odoo 17 Using the Scaffold Method
Other sources
1. Income from Other Sources
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100
Dr. R. Prema
Associate Professor in Commerce CA
2. Dr. NGPASC
COIMBATORE | INDIA
Other Sources
Income from
Other Sources
General
Incomes
Section 56 (1)
Specified
Incomes
Section 56 (2)
3. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
Dividend income
The term ‘dividend’ as used in the
Act has a wider scope and meaning
than under the general law.
4. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
Casual income
Income in the nature of winning from lotteries, crossword puzzles,
races including horse races, card games and other games of any sort,
gambling, betting etc. Such winnings are chargeable to tax at a flat rate
of 30% under section 115BB.
5. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
In order to prevent the practice of receiving sum
of money or the property without consideration
or for inadequate consideration, section 56(2)(x)
brings to tax any sum of money or the value of
any property received by any person without
consideration or the value of any property
received for inadequate consideration.
(ii) Sum of Money: If any sum of money is
received without consideration, and the
aggregate value of which exceeds ` 50,000, the
whole of the aggregate value of such sum is
chargeable to tax.
Any sum of money or value of property received without
consideration or for inadequate consideration to be subject
to tax in the hands of the recipient [Section 56(2)(x)]
6. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
(iii) Immovable property:
If an immovable property is
received
(a) Without consideration, the
stamp duty value of such
property would be taxed as
the income of the recipient if it
exceeds ` 50,000.
(b) For a consideration which is
less than the stamp duty value
of the property by an amount
exceeding ` 50,000, the
difference between the stamp
duty value and the
consideration shall be
chargeable to tax in the hands
of the assessee as “Income
from other sources”.
7. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
If movable property is received
(a) without consideration, the aggregate fair market value of such
property on the date of receipt would be taxed as the income of the
recipient, if it exceeds ` 50,000.
(b) for inadequate consideration, and the difference between the
aggregate fair market value and such consideration exceeds ` 50,000,
such difference would be taxed as the income of the recipient.
Movable Property
8. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
The provisions of section 56(2)(x) would apply only to property which is the
nature of a capital asset of the recipient and not stock-in-trade, raw material
or consumable stores of any business of the recipient. Therefore, only
transfer of a capital asset, without consideration or for inadequate
consideration would attract the provisions of section 56(2)(x).
Applicability of section 56(2)(x)
10. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
Non-applicability of section 56(2)(x):
(a) from any
relative; or
(b) on the
occasion of the
marriage of the
individual; or
(c) under a will or
by way of
inheritance; or
(d) in
contemplation of
death of the
payer or donor,
as the case may
be; or
(e) from any local
authority; or
(f) from any fund
or foundation or
university or
other educational
institution or
hospital or other
medical
institution or any
trust or
institution; or
11. Dr. NGPASC
COIMBATORE | INDIA
INCOMES CHARGEABLE UNDER THIS HEAD [SECTION 56]
Non-applicability of section 56(2)(x):
(g) from any trust
or institution
registered; or
(h) by any fund or
trust or institution
or any university or
other educational
institution or any
hospital or other
medical institution.
(i) by way of
transaction not
regarded as transfer
under section
47(vi)/
(vib)/(vid)/(vii).
(j) from an
individual by a trust
created or
established solely
for the benefit of
relative of the
individual.
17. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
1. From the following particulars of Mr. Amarpreet Thind, compute the amount of taxable gifts
chargeable as “Income under the head other sources” :
(i) He received a cheque of ₹ 1,00,000 as a gift from his grandfather on 15 May 2019.
(ii) He received ₹ 21,000 from his friend from Canada as a gift on 31 May 2019.
(iii) He received ₹ 5,00,000 under a will from his grandmother on 30 June 2019.
(iv) He received ₹ 50,000 from his father’s friend on 30 June 2019.
(v) He received ₹ 75,000 as gift from his uncle on 30 September 2019 on his birthday.
(vi) He received ₹ 20,000 as gift from his employer on 1 October 2019.
(vii) He received a gift of ₹ 51,000 from his father’s brother on 30 November 2019.
18. Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
Computation of Taxable Gifts under the head other sources for the P/Y 2019-20
Particulars ₹ ₹
He received a cheque of ₹ 1,00,000 as a gift from his grandfather on 15 May 2019.
(Exempt as received from relative)
Nil
He received ₹ 21,000 from his friend from Canada as a gift on 31 May 2019. 21,000
He received ₹ 5,00,000 under a will from his grandmother on 30 June 2019.
(Exempt as received under a will from relative)
Nil
He received ₹ 50,000 from his father’s friend on 30 June 2019. 50,000
He received ₹ 75,000 as gift from his uncle on 30 September 2019 on his birthday. 75,000
He received ₹ 20,000 as gift from his employer on 1 October 2019. Nil
He received a gift of ₹ 51,000 from his father’s brother on 30 November 2019.
(Exempt as received from relative)
Nil
Total Monetary Gifts 1,46,000
19. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
2. From the following particulars of Mr. X, compute the amount of taxable gifts chargeable as
“Income under the head other sources” :
(i) He received a plot worth ₹ 6,00,000 as a gift from his grandmother under a will
(stamp duty value is determined at ₹ 3,50,000) on 25 May 2019.
(ii) He received a house as gift on 15 June 2019 from his uncle, on his birthday worth
₹ 15,00,000 (stamp duty value is ₹ 10,00,000
(iii) He received a plot from his friend as gift whose F.M.V. as on 30 September 2019 was
₹ 75,000 and stamp duty value was ₹ 40,000
(iv) He purchased a house from Mr. R. for ₹ 2,50,000 on 1 October 2019 and the stamp
duty value was ₹ 4,00,000
(v) He received a house property as gift from a friend Mr. A. as his Stock-in-Trade (Mr. A.
is a property dealer) worth ₹ 15,00,000, whose stamp duty value is ₹ 8,00,000
(vi) Gift of wrist watch from a friend and the cost of the gift is ₹ 60,000
(vii) On his birthday, his partnership firm gave him a gift of a car worth ₹ 5,00,000
20. Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
Computation of Taxable Gifts under the head other sources for the P/Y 2019-20
Particulars ₹ ₹
Gift from his grandmother (Exempt as received from relative) Nil
Gift from Uncle 10,00,000
Gift of Plot from Friend
(Exempt as Stamp Duty Value does not exceed 50,000)
Nil
Purchase of House ( Stamp duty value 4,00,000, Actual Consideration 2,50,000) 1,50,000
Gift of House property as stock-in-trade Nil
Gift of wrist watch from a friend ( Watch – Not a property) Nil
Gift of Car (Not a property) Nil
Total Monetary Gifts 11,50,000
21. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
3. Mr. Basu received the following gifts during the previous year 2019-20:
I) On 13 April, 2019, on his birthday, he received following gifts:
i) ₹ 11,000 from his father
ii) ₹ 11,000 from his grandfather
iii) ₹ 11,000 from his father’s cousin
iv) ₹ 5,000 from his father’s friend
v) ₹ 5,000 from his own friend
vi) ₹ 51,000 from his friend from U.S.A.
vii) ₹ 5,000 from his mother’s cousin
viii) ₹ 21,000 from other friends and neighbours
ix) He received a gift of an imported watch worth ₹ 35,000 from another friend from U.S.A.
II) On 20 September 2019, on the occasion of his marriage, he received the following gifts:
i) ₹ 11,000 from his mother
ii) ₹ 11,000 from his maternal uncle
iii) ₹ 11,000 from a friend of his father
iv) ₹ 5,100 from his friend
v) ₹ 51,000 from various friends, neighbours and relatives.
vi) ₹ 11,000 from his employer.
22. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
III) On 25 October 2019 , he received following gifts which were gifted to him by his
mother’s mother (Nani) through a will which she executed in his favour before her
death.
i) A plot worth ₹ 5,00,000
ii) Bank deposits worth ₹ 1,00,000
IV) A friend from America gifted him a computer worth ₹ 50,000 on 30 November
2019. Find out the amount of taxable gifts for the A/Y 2020-21.
23. Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
Computation of Taxable Gifts under the head other sources for the P/Y 2019-20
I) Monetary Gifts
Particulars ₹ ₹
A) Monetary Gifts
Gift from Father Nil
Gift from Grandfather Nil
Gift from Father’s Cousin 11,000
from his father’s friend 5,000
Gift from his own friend
Gift from his friend from U.S.A.
Gift from his mother’s cousin
Gift from other friends and neighbours
5,000
51,000
5,000
21,000
On 20 September 2019 (on the occasion of marriage)
All monetary gifts are exempted
Gift of bank deposits from mothers’ mother (Exempted)
Nil
Nil
Total Monetary Gifts 98,000
Total Monetary Gifts exceeding 50,000, entire amount is taxable 98,000
24. Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
Computation of Taxable Gifts under the head other sources for the P/Y 2019-20
Particulars ₹ ₹
B) Gift of Immovable property
Gifts of Immovable Property :
Gift of plot from mother’s mother
Nil
C) Gift of property other than Immovable property
Gift of Property other than immovable property:
Imported Watch
Nil
Gift of computer from America friend Nil
Total taxable gifts under the head other sources 98,000
25. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
4. Mr. A invested 1,00,000 in 9% tax-free debentures of a company. What
will be his taxable interest for the previous year ending on 31.3.2020 if
the rate of deduction of tax at source is @ 10%.
Ans:
Net interest due = 1,00,000 * 9/100 = 9,000
Grossed up = 9000 * [100 / (100-10)] = 9000*100/90 = 10,000
26. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
5. Calculate “Income under the head other sources” :
(i) Winnings from Lottery ₹ 1,00,000
(ii) Amount received from race winnings ₹ 35,000
Gifts received during the previous year 2019-20:
(i) Received ₹ 20,000 as gift from his friend.
(ii) Received ₹ 1,00,000 as gift from his elder brother.
(iii) Received ₹ 1,40,000 as gift on his marriage.
(iv) Received ₹ 80,000 as gift from his NRI friend on 1-1-2020.
(v) Another gift of ₹ 18,000 received from his friend.
27. Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
Computation of Income from other sources for the P/Y 2019-20
Particulars ₹ ₹
Winnings from Lottery ₹ 1,00,000 1,00,000
Amount received from race winnings ₹ 35,000
Grossing up = Amount x 100 / 100-30
35000 x 100 / 100-30 50,000
Received ₹ 20,000 as gift from his friend. 20,000
Received ₹ 1,00,000 as gift from his elder brother. -
Received ₹ 1,40,000 as gift on his marriage. -
Received ₹ 80,000 as gift from his NRI friend on 1-1-2020. 80,000
Gift of ₹ 18,000 received from his friend. 18,000
Income from other sources 2,68,000
28. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
6. Mr. X has the following incomes during the year ending on 31-3-2020:
i) Dividend declared by M.Co. on 31-3-2019 (Indian Co.) ₹ 6,000
ii) Dividend declared by Z.Co. on 31-3-2019 (Indian Co.) ₹ 9,000
iii) Interim dividend received on 1-5-2019 (Indian Co.) ₹ 3,000
iv) He won gold worth ₹ 10,00,000 from Punjab state lottery
v) During March 2020 he earned ₹ 1,00,000 as prize money on horse
races. These horses are owned by him and expenditure incurred on
maintenance of these horses amounted to ₹ 1,60,000
Compute income from other sources.
29. Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
Computation of Income from other sources for the P/Y 2019-20
Particulars ₹ ₹
Dividend declared by M.Co. on 31-3-2019 (Indian Co.) -
Dividend declared by Z.Co. on 31-3-2019 (Indian Co.) -
Interim dividend received on 1-5-2019 (Indian Co.) -
Gold from Punjab state lottery 10,00,000
Winnings from Horse race:
Prize money of horse race
Less: Expenses of maintenance of these horses
1,00,000
1,60,000
-
Loss to be carried forward 60,000 -
Income from other sources 10,00,000
30. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
7. Mr. G. Bedi owns horses at Bombay and Bangalore. Those horses run for
races at the race course. During the year 2019-2020 Mr. bedi submits the
following information's:
i) Exp on race horses at Bombay - 260000
ii) Exp on race horses at Bangalore – 430000
iii) Stake money earned by horses at
i) Bombay – 120000
ii) Bangalore – 500000
iv) Mr Bedi received 105000 on 1.7.2019 on betting during horse races at
Bombay.
Compute his taxable income under other sources.
31. Computation of Income from other sources for the P/Y 2019-20
Particulars ₹ ₹
A) Activity of maintenance of race horses
Income
At Bombay 120000
At Bangalore 500000 620000
Less: Expenses
At Bombay 260000
At Bangalore 430000 690000
Loss from activity of maintenance of race horses to be c/f 70000
B) Race winning:
Amount Received – 105000
Gross = 105000*100/70
150000
Income from other sources 150000Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
32. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
8. Compute “Income under the head other sources” of Mr. Krishnamurthy who had the following
investments during the previous year 2019-20:
i) ₹ 11,000, 10 % Central Government Securities
ii) ₹ 36,000, 10 % Tax – free commercial securities of a closely held company.
iii) ₹ 6,300, received as interest on Tax free public limited company securities (listed)
iv) ₹ 7,200, received as interest on Karnataka Govt. securities
v) ₹ 4,000, received as interest on debenture of Deepak Fertilizer (listed)
vi) ₹ 30,000, 13.5 % securities of a paper mill co. limited (listed)
vii) ₹ 35,000, 11 % securities of a paper mill co. (listed)
viii) ₹ 10,000, 15 % Jaipur Municipal Corporation Bonds.
ix) Dividend from Carona Ltd ₹ 4,000
x) During the year he also got a prize in Karnataka State Lottery. The amount received by him was
₹ 35,000. Interest on all securities is payable on 1st January every year. Bank charges ₹ 200 as collection
charges
33. Computation of Income from other sources for the P/Y 2019-20
Particulars ₹ ₹
10 % Central Government Securities (11,000 x 10 / 100) 1100
10 % Tax – free commercial securities of a closely held company (36,000 x 10 /100)
Grossing up 3600 x 100 / 100-10
4000
Interest on Tax free public limited company securities (listed) (6300 x 100 / 100-10 ) 7000
Interest on Karnataka Govt. securities 7200
Interest on debenture of Deepak Fertilizer (listed) 4000
13.5 % securities of a paper mill co. limited (listed) (30000 x 13.5/100) 4050
11 % securities of a paper mill co. (listed) (35000 x 11/100) 3850
15 % Jaipur Municipal Corporation Bonds.(10000 x 15/100) 1500
Dividend from Carona Ltd -
Received from Karnataka State Lottery 35000 x 100 / 100-30 50000
Total 82700
Bank Charges 200
Income from other sources 82500Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
34. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
9. Compute income from other sources for the assessment year 2020-2021.
He received
1. Directors fee from a company - ₹ 10,000
2. Interest on Bank deposits - ₹3,000
3. Income from undisclosed sources - ₹12,000
4. Winning from lotteries received - ₹24,500
5. Royalty on a book written by him – 8,000
6. By giving lectures in functions – 5,000
7. Interest on loan given to a relative – 7,000
8. Interest on tax free debentures of a company (listed in recognized stock exchange) - ₹3,600
9. Dividend on shares - ₹6,400
10. Interest on post office saving bank account - ₹500
11. Interest on government securities - ₹2200
He paid ₹100 for collection of dividend and ₹1000 for typing the manuscript of book written by him.
35. Computation of Income from other sources for the P/Y 2019-20
Particulars ₹ ₹
Directors fee from a company 10,000
Interest on Bank deposits 3,000
Income from undisclosed sources 12,000
Winning from lotteries received (24500*100/70) 35,000
Royalty on a book written by him – typing the manuscript of book written (8,000-1,000) 7,000
By giving lectures in functions 5,000
Interest on loan given to a relative 7,000
Interest on tax free debentures of a company (3600*100/90) 4,000
Dividend on shares -
Interest on post office saving bank account (Exempt upto 3,500) - 500 -
Interest on government securities 2,200
Income from other sources 85,200
Dr. NGPASC
COIMBATORE | INDIA
SOLUTION
36. Dr. NGPASC
COIMBATORE | INDIA
PROBLEM
10. Compute income from other sources for the assessment year 2020-2021.
1. Equity dividends - ₹25,200
2. Preference Dividends - ₹12,000
3. Collection Charges in respect of dividend – 1% of dividend
4. Rent from letting out of a building along with plant & machinery - ₹30,000
5. Depreciation on building - ₹4,000
6. Insurance on Buildings - ₹1,600
7. Office expenses relating to buildings - ₹1,600
8. Repairs, Rates – 1,600
37. Computation of Income from other sources for the P/Y 2019-20
Particulars ₹ ₹
Equity dividends -
Preference Dividends -
Collection Charges in respect of dividend -
Rent from letting out of a building along with plant & machinery 30,000
Less: Depreciation on building 4,000
Insurance on Buildings 1,600
Office expenses relating to buildings 1,600
Repairs, Rates 1,600 21,200
Income from other sources 21,200
Dr. NGPASC
COIMBATORE | INDIA
SOLUTION