r

1. AssessmentY
earSection2(9):
⦁ AssessmentY
ear refers to 12 months starting from the first day of everyApril of a
particularyearandendson31stdayofeveryMarchofthenextyear.
⦁ The current Assessment Y
ear (A.Y) stars from 1st April 2023 and ends on 31st
March2024(01.04.2023–31.03.2024).

2. PreviousY
earSection(3):
⦁ Previousyear refersto12monthsimmediatelyprecedingtheparticular
assessment year.
⦁ PreviousY
ear (P
.Y) : 01.04.2022-31.03.2023
Assessee: Sec. 2(7):
AssesseereferstoanyoneofthefollowingpersonsasperIncomeT
axAct:
⦁ Everypersonwhoisliabletopaytax.
⦁ Everypersonwhois liable topayinterestorpenalty
⦁ Everypersonwhois entitled togetrefundofincometax. Ordinary
Assessee
.

3. ⦁ Anypersonwhois deemedtobeanassessee.
⦁ Anypersonwhoisassesseeindefault.
⦁ Anypersonwhohasincurredlossandfiled returnofloss.
⦁ Anypersononwhomlegalproceedinghasbeencarriedout.
OrdinaryAssessee

4. ⦁ OrdinaryAssessee
⦁ DeemedAssessee(Or)Representativeassessee(Foraminor,fatheristhe
deemedassessee.
⦁ Assessee-in-default-

5. PersonSec.2(31)
7categories of Persons
• Anindividual
• Hindu Undivided Family(HUF)
• Company
• Firm
• AOP(Or)BOI
• Alocal authority
.
• Everyartificial juridical person

6. Incomeincludesthefollowing:
⦁ Profits&gains
⦁ Dividend
⦁ V
oluntary contributionreceivedbyatrust.
⦁ Perquisiteor profit inlieuof salary
.
⦁ Allowances
⦁ Casual income
⦁ Capital gains
⦁ Gift of anamountexceedingRs.50,000

7. Continued…..
• Anysumreceivedunder Keymaninsurancepolicy
• Contributionreceived byanyUniversity,educationalinstitutions,hospitals forcharitable
or religiousor researchpurpose.
• Anysumreceived byanemployeeasP
.ForanyfundcreatedunderESIAct

8. ⦁ Incomemustcomefromadefinite sourceinordertogetit taxable.
⦁ Legal &illegal incomesaretaxable.
⦁ Bothcash&inkind.
⦁ T
emporaryor permanent.
⦁ Lumpsumor receivedininstalment
⦁ Sameincomecannot betaxedtwice.
⦁ Reliefsor reimbursementof expenses(notanIncome).
⦁ Incaseofdisputeregardingthetitle ofincome,thenthebeneficiary will betaxed.

9. Continued……
• Diversionof incomeisnot taxable.
• Applicationof incomeistaxable.
• PINmoneyreceivedbywifeisnot taxable.
• Awardreceivedbyaprofessionalsportspersonin thenatureofbenitis taxable
• Incomeincludeslossalso.

10. ⦁ Agricultural IncomeSec.10(1).
⦁ AnysumreceivedbyanindividualasamemberofHUF
.Sec.10(2)
⦁ IncomefrompartnershipfirmSec.10(2a):
⦁ Anyremunerationreceived byanemployeeofaforeigngovernmentduringhisstay
inIndiaisnot taxable.
⦁ Giftsandawardsreceived onoccasionofbirthdays,marriageandsoon–not
taxable
⦁ Giftsreceivedfromunrelatedpersonsis taxable if thevalueofgiftsexceed
Rs.50,000

11. ⦁ Anyincomereceivedbyaconsultantin theformofremunerationorfeesfroman
international agency–Nottaxable.
⦁ Compensationreceivedatthetimevoluntaryretirementfromapublicsector
company.
⦁ Compensationreceivedbyvictims ofBhopalGastragedy.
⦁ Sumreceivedincludingthebonusunder LifeInsurancePolicy
.
⦁ Daily allowanceandconstituencyallowancereceivedbytheMP
,MLA.
⦁ Pensionreceived byGallantryAwardwinnersormembersoftheirfamily.
⦁ Familypensionreceived byawidowornominateheirsofamemberofarmed
forces.

12. ⦁ Incomeofprofessionalinstitutes orassociations approvedbythecentral
government.
⦁ Incomeofanauthorityestablished in theStateforthedevelopmentofKhadior
Villageindustries.
⦁ IncomeofthePrasarBarathi(BroadcastingCorporationofIndia.
⦁ Incomeofcertainfunds,incomeofeducationalinstitutions andincomefrom
hospitals.
⦁ Payment receivedbyanemployeefromaPFor PPF
.
⦁ Payment receivedbyanemployeefromaRPF
.
⦁ Educational scholarships receivedfromthegovernment.

13. ⦁ DividendincomefromanIndianCompany.
⦁ Incomefromtranferof capital assetsof UTI
⦁ IncomeofuptoRs.1,500is exemptin caseofaminorchild
⦁ Anyincomeof IRDA.

14. ⦁Section10(1)–Agriculturalincomeisfullyexemptedfromtax.
Kindsofagriculturalincome:
⦁ Anyrentorrevenuederivedfromagriculturalland.
⦁ Anyincomefromagriculturaloperationssuchascultivation, tilling oftheland,
wateringtheland,sowingtheseeds,plantingandsoon.
⦁ Incomederived fromsaplingsorseedlings grownin anurseryshall bedeemedto
beagricultural income.
⦁ Incomefromfarmhouse.
⦁ Incomefromthesaleagricultural produce.

15. ⦁ Thelandmust besituatedinIndia
⦁ Landmust beusedonlyfor agricultural purposes.
⦁ Thedirect incomefromagricultureis treatedasagriculturalincome.
⦁ Anindirect incomefromagriculturewill notbetreatedasagriculturalincome.
Example:Salaryreceived asafarmmanager,dividend fromacompany
engagedinagricultural activities.
⦁ Capitalgainsarisingfromthetransferofanagriculturallandis nottreatedas
agricultural income.

16. In caseofCompositeInome,thetotalincomeis calculatedfirst.
Then,theportionofincomebelongingtoagriculturalincomemustbededucted.
Andthebalanceis treatedasnon-agriculturalincomewhichis taxable.
SeparationofAgriculturalandNon-AgriculturalIncome:
⦁ Incomefromgrowing&manufacturingteainIndia:60%-Agricultural
40%- Businessincome
⦁ Incomefromgrowingandmanufacturingofcentrifugedlatexorcenex:65%-Agri.