The document lists important sections of the Indian Income Tax Act of 1961 related to direct taxes, including definitions of key terms like income, taxpayer, and tax year. It also outlines various types of income like salary, property rental, business profits and other sources that are taxed under the Act. The document concludes by providing the tax deducted at source rates for different types of income payments for the assessment year 2019-2020.

1. IMPORTANT SECTIONS OF
DIRECT TAX LAW AND
PLANNING OF IT ACT 1961
Mr. Sundar B. N.
Assistant Professor
Co-Ordinator of M.com

2. SOME IMPORTANT SECTIONS UNDER
DIRECT TAX
SL NO SECTIONS NAME OF THE SECTIONS
1. 2(IA) Agricultural income.
2. 2(7) Assessee
3. 2(9) Assessment year
4. 2(17) Company
5. 2(18) Company in which public are substantially interested.
6. 2(22) Closely held company
7. 2(22A) Domestic company
8. 2(24) Income
9. 2(26) Indian company
10. 2(31) Person
11. 2(45) Total income and tax liability
12. 15-21 Income from Salary
13. 22-27 Income from House Property
14. 28-44 Income from profits and gains of Business or Profession

3. SL NO SECTIONS DEDUCTIONS
15. 45-55 Capital gains
16. 56-59 Income from other sources
17. 3 Previous year
18. 10 Exempted income
19. 10A Special provisions in respect of newly established undertakings in free trade zone,
etc.
20. 10B Special provisions in respect of newly established hundred percent export-oriented
undertakings.
21. 30 Repair-Rent, rates, taxes, repairs and insurance of building
22. 31 Current Repair-Repairs and insurance of machinery, plant and furniture
23. 32 Depreciation
24. 33AB Tea/coffee/rubber development account
25. 44AA Maintenance of accounts by certain persons
26. 44AB Audit of accounts of certain persons
27. 44AD Computation of income on estimated basis in case of tax [Opted for Presumptive
taxation scheme
28. 70 Mode of set off and carry forward
29. 72A Carry forward and set-off of loss and depreciation- when permissible in the hands of
amalgamated company.

4. SL NO SECTIONS DEDUCTIONS
80C-80U Deductions available
30. 80C Deductions in respect of life insurance premia, deferred annuity,
contributions to provident fund, subscription to certain equity shares or
debentures etc.
31. 80CCA Deduction in respect of deposit under national savings scheme
32. 80CCC Deduction in respect of pension fund
33. 80CCD Deduction in respect od contribution to a National Pension System (NPS)
34. 80CCG Deduction in respect of investment made under any equity saving scheme
35. 80D Deduction in respect of medical insurance premia
36. 80DD Deduction in respect of maintenance including medical treatment of a
dependent being a person with disability- when and to what extent
available.

5. SL NO SECTIONS DEDUCTIONS
37. 80DDB Deduction in respect of medical treatment, etc.
38. 80E Deduction in respect of payment of interest on loan taken for higher studies.
39. 80G Deduction in respect of donation to certain funds, charitable institutions, etc.
40. 80GG Deduction in respect of rent paid.
41. 80GGA Deduction in respect of certain donations for scientific research or rural
development.
42. 80GGB Deduction in respect of contributions given by any person to political parties or
electoral trust.
43. 80GGC Deduction in respect of contributions given by any person to political parties or
electoral trust.
44. 80IA Deduction in respect of profits and gains from industrial undertaking or
enterprises engaged in infrastructure development etc.
45. 80IAB Deductions in respect of profits and gains by an undertaking or enterprise
engaged in development of Special Economic Zone
46. 80IB Deduction in respect of profits and gains from certain industrial undertakings
other than infrastructure development undertakings.

6. SL NO SECTIONS DEDUCTIONS
47. 80IC Deduction in respect of profits and gains of certain undertakings in certain
special category of states.
48. 80P Deduction in respect of income of co-operative societies.
49. 80QQB Deduction in respect of royalty of authors.
50. 80RRB Deduction in respect of royalty on patents.
51. 80TTA Deduction in respect of interest on deposits in savings accounts.
52. 80U Deduction in case of a person with disability.

7. SL NO SECTIONS DEDUCTIONS
53. 115JB MAT (Minimum Alternative Tax)
54. 115-O Tax on distributed profits of domestic companies.
55. 154 & 155 Provisions regarding rectification of mistake
56. 174 Person leaving India.
57. 175 Person likely to transfer property to avoid tax.
58. 176 Discontinued business
59. 207 Advance payment of tax
60. 234A Interest for defaults in furnishing return of income
61. 234B Interest for default in payment of advance tax
62. 234C Interest for deferment of advance tax
63. 234D Interest on excess refund
64. 237 Right to claim refund- when arises.
65. 249 Appeals to the commissioner (Appeals)
66. 263 Revisions of order prejudicial to revenue
67. 271 Penalties and prosecutions

8. TAX DEDUCTED AT SOURCE RATE CHART FOR
THE AY 2019-20
SECTIONS INCOME TYPE THRESHOLD LIMIT INDIVIDUAL/HUF TDS
RATE
192 Salary income Income tax slab Slab rates
192A EPF- premature withdrawal Rs. 50000 10%. If no PAN, then TDS
@ 30%
193 Interest on securities Rs. 10000 10%
193 Interest on debentures Rs. 5000 10%
194 Dividend (other than listed
companies)
NA 10%

9. SECTIONS INCOME TYPE THRESHOLD LIMIT INDIVIDUAL/HUF
TDS RATE
194A Interest other than on securities by
bank/post office (like FDs)
Rs. 40000 (for senior
citizens Rs. 50000)
10%
194A Interest other than on securities by
others
Rs. 5000 10%
194B Winning from lotteries/puzzle/game Rs. 10000 30%
194BB Winning from horse race Rs. 10000 30%
194D Payment of insurance commission Rs. 15000 5%
194DA Payment in respect of life
insurance policy
Rs. 100000 1%
194EE Payment of NSS deposits Rs. 2500 10%
194G Commission on sale of lottery
tickets
Rs. 15000 5%
194H Commission or brokerage Rs. 15000 5%
194I Rent of land, building or furniture Rs. 240000 10%

10. SECTIONS INCOME TYPE THRESHOLD LIMIT INDIVIDUAL/HUF
TDS RATE
194I Rent of plant and machinery Rs. 240000 2%
194IB Rent Rs. 50000 (per month) 5%
194IA Transfer of immovable property
(other than agricultural land)
Rs. 50 Lakh 1%
194LB Interest from infra bonds NA 5%
194LD Interest on certain bonds and Govt.
securities
NA 5%