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.
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.
1) The Life Insurance Corporation Act of 1956 nationalized the life insurance business in India and established the Life Insurance Corporation of India (LIC) to take over the business and assets of existing life insurers.
2) The LIC was given powers to carry on life insurance business both in India and abroad, invest funds, borrow money, and enter into arrangements to further its business operations.
3) The act also outlined the process for transferring existing life insurance policies, employees, assets, and documents of private insurers to the LIC.
This document outlines seven key principles of insurance: utmost good faith, insurable interest, indemnity, contribution, subrogation, loss minimization, and nearest cause. It provides examples and explanations of each principle, including how insurable interest requires a financial stake in the insured object or loss, utmost good faith requires full disclosure, indemnity provides compensation for loss rather than profit, and contribution and subrogation determine payment among multiple insurers. The principles of loss minimization and nearest cause also guide determining responsibility and liability.
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
This document provides information about income from other sources under the Indian Income Tax Act, including:
- Income from other sources is the residual head of income for any income not covered under other heads.
- Section 56(2) lists specific incomes chargeable under this head, such as dividends, lottery winnings, interest, renting of machinery.
- Other incomes chargeable include various types of interest, director's fees, agricultural income from foreign land, and undisclosed income under sections 68-69C.
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.
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.
1) The Life Insurance Corporation Act of 1956 nationalized the life insurance business in India and established the Life Insurance Corporation of India (LIC) to take over the business and assets of existing life insurers.
2) The LIC was given powers to carry on life insurance business both in India and abroad, invest funds, borrow money, and enter into arrangements to further its business operations.
3) The act also outlined the process for transferring existing life insurance policies, employees, assets, and documents of private insurers to the LIC.
This document outlines seven key principles of insurance: utmost good faith, insurable interest, indemnity, contribution, subrogation, loss minimization, and nearest cause. It provides examples and explanations of each principle, including how insurable interest requires a financial stake in the insured object or loss, utmost good faith requires full disclosure, indemnity provides compensation for loss rather than profit, and contribution and subrogation determine payment among multiple insurers. The principles of loss minimization and nearest cause also guide determining responsibility and liability.
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
This document provides information about income from other sources under the Indian Income Tax Act, including:
- Income from other sources is the residual head of income for any income not covered under other heads.
- Section 56(2) lists specific incomes chargeable under this head, such as dividends, lottery winnings, interest, renting of machinery.
- Other incomes chargeable include various types of interest, director's fees, agricultural income from foreign land, and undisclosed income under sections 68-69C.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
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.
Membership in a company can take several forms. Members and shareholders of a company collectively constitute the company as a corporate entity. A person can become a member through subscription, application and registration, beneficial ownership, or by holding qualification shares. Membership can cease through the act of parties such as transferring shares or if they are forfeited, or by operation of law like insolvency or death. Members have various rights like statutory, documentary and legal rights, as well as rights to company assets, and responsibilities that depend on the type of company like one with limited or unlimited liability. A company is required to maintain a register of members and an index of members if it has more than 50.
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 presentation intents to explain the concepts of Set off and Carry Forward of losses under income tax law to students. For detail understanding of the concept viewers are invited to our YouTube Channel.
The document discusses the rules for set off and carry forward of business losses under the Income Tax Act. It can be summarized as follows:
1) Section 70 allows for set off of losses from one source of income against profits from another source within the same head. Section 71 allows set off of losses under one head against income under another.
2) Business losses can be carried forward for 8 years and set off against future profits of any business. Speculation losses can be carried forward for 4 years against future speculation profits only.
3) Capital losses can be carried forward for 8 years against capital gains. House property losses can be carried forward for 8 years against future house property income. Losses from specified businesses
This document summarizes exempted incomes under Section 10 of the Indian Income Tax Act. It lists 87 exempted incomes across various sub-sections of Section 10. Some key exempted incomes include agricultural income, interest income from certain bonds/deposits, leave travel concession, provident fund payments, gratuity, family pension received by central/state govt. employees, scholarship amounts, and dividends received from Indian companies. The document was prepared by Dr. Sangeetha R of Hindusthan College of Arts and Science to outline various types of incomes that are exempted from taxable income calculations under the Income Tax Law in India.
Objectives & Agenda :
One of the heads of income under the Income Tax Act is Income from House Property. Under this head, incomes earned from house properties are chargeable to tax. The webinar covers the aspects of basis of charging income to tax under this head, nature of house properties taxed under the Act, manner of computing income chargeable to tax under this head, deductions available under this head and eventually judicial precedents pertaining to this head of income.
The document summarizes India's Insolvency and Bankruptcy Code of 2016. It consolidates previous bankruptcy laws into a single code and establishes mechanisms for insolvency resolution, regulation, and adjudication. The code aims to promote business and availability of credit. It outlines procedures for insolvency resolution and liquidation of corporate entities. If resolution fails, assets are liquidated according to the order of priority of payments to secured creditors, wages, financial and unsecured debts. The code establishes a new framework for addressing insolvency and bankruptcy in India.
Clubbing of income provisions allow the income of certain taxpayers to be included in the taxable income of another person under specific circumstances outlined in sections 60-64 of the Income Tax Act. This includes income transferred without asset transfer, income from revocable transfers of assets, income of a spouse from a business in which the other spouse has substantial interest without qualifications, income from assets transferred to a spouse or son's wife without adequate consideration, and income of a minor child. The purpose is to prevent tax avoidance by attributing income to the person who effectively controls or benefits from the income.
This document provides definitions and explanations related to takeovers and the Takeover Code in India. It defines key terms like acquirer, control, shares, promoter, person acting in concert, target company. It summarizes regulations around disclosures for acquisition of shares above certain thresholds and the requirement for open offers when acquisition of shares takes the holding above certain levels like 15% and 55%. It also discusses judgements around interpretation of some of these terms.
Preference shares are shares that have preferential rights to dividends and repayment of capital compared to common shares. There are several types of preference shares: cumulative vs non-cumulative, participating vs non-participating, convertible vs non-convertible, and redeemable vs non-redeemable. Preference shares provide benefits like helping companies raise long-term capital and guaranteeing fixed returns, but also have drawbacks like lack of trading and lower returns.
This document discusses the rules for setting off losses from one source or head of income against profits from another in India. It explains that losses can be set off either intra-source (within the same head) or inter-source (across heads), with some exceptions. Unabsorbed losses and depreciation can be carried forward for future set-off for up to 8 years for regular business losses and 4 years for speculative business and race horse losses. The order of set-off is outlined as current year depreciation, then business losses, then unabsorbed depreciation.
The Insolvency and Bankruptcy Code of 2016 consolidated existing bankruptcy laws in India to create a single law governing insolvency and bankruptcy. It aims to simplify and expedite bankruptcy proceedings while protecting creditor interests. Under the Code, a corporate insolvency resolution process is initiated when financial creditors with claims over Rs. 1 crore file an application with the National Company Law Tribunal. If no resolution plan is approved within 180 days, the company enters liquidation. The Code established the Insolvency and Bankruptcy Board of India as the regulator and introduced insolvency professionals to manage proceedings.
SHARES - MEANING , DEFINITION , CHARACTERISTICS AND ITS TYPES.KhushiGoyal20
This document defines shares and discusses their key characteristics and types. Shares represent a portion of a company's total share capital and are divided into parts. Each part is called a share. There are two main types of shares: equity shares and preference shares. Equity shares constitute the major portion of a company's shares and holders have voting rights and rights to profits. Preference shares have preferential rights to dividends and repayment of capital over equity shares. Preference shares can be further classified as cumulative, non-cumulative, convertible, redeemable and participating.
- Under the Indian Income Tax Act, total income is classified and taxed under five heads: salary, house property, capital gains, business/profession, and other sources.
- Income from salary includes remuneration from employment such as basic pay, bonuses, commissions, allowances, and perquisites. Some allowances and perquisites are tax exempt.
- Income from house property is taxed based on the annual rental value of property owned, whether rented out or vacant. Standard deductions can reduce the taxable amount.
- Income from business/profession consists of profits from self-employment or operating a business, after accounting for expenses.
- Capital gains come from the profits on sale of capital
Shares represent ownership interests in a company. There are two main types of shares - equity shares and preference shares. Equity shares represent ownership and voting interests, while preference shares provide a fixed dividend that takes priority over equity shares. Companies can also issue other types of shares like sweat equity shares, which are issued to directors or employees for providing intellectual property or value additions to the company. Sweat equity shares must be approved by shareholders and issued within 12 months at a valuation determined by a registered valuer. They are subject to a 3-year lock-in period from the date of allotment.
Key Takeaways:
- Provisions dealing with set-off and carry forward
- Inter-head and Inter-Source Set-off of Losses
- Carry Forward and Set-off of Losses in Special Cases
This chapter discusses the rules for aggregation of income, set-off and carry forward of losses under the Income Tax Act. Key points include:
- Losses from one source of income can be adjusted against income from another source under the same head.
- Losses can be carried forward for a maximum of 8 assessment years for set-off against future profits. Exceptions apply for some specific heads.
- Loss from one head, except capital gains, can be set off against income from another head. However, business loss cannot be set off against salary income.
- Loss from house property can be set off against other income up to Rs. 2 lakhs annually. Unabsorbed loss can be
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
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.
Membership in a company can take several forms. Members and shareholders of a company collectively constitute the company as a corporate entity. A person can become a member through subscription, application and registration, beneficial ownership, or by holding qualification shares. Membership can cease through the act of parties such as transferring shares or if they are forfeited, or by operation of law like insolvency or death. Members have various rights like statutory, documentary and legal rights, as well as rights to company assets, and responsibilities that depend on the type of company like one with limited or unlimited liability. A company is required to maintain a register of members and an index of members if it has more than 50.
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 presentation intents to explain the concepts of Set off and Carry Forward of losses under income tax law to students. For detail understanding of the concept viewers are invited to our YouTube Channel.
The document discusses the rules for set off and carry forward of business losses under the Income Tax Act. It can be summarized as follows:
1) Section 70 allows for set off of losses from one source of income against profits from another source within the same head. Section 71 allows set off of losses under one head against income under another.
2) Business losses can be carried forward for 8 years and set off against future profits of any business. Speculation losses can be carried forward for 4 years against future speculation profits only.
3) Capital losses can be carried forward for 8 years against capital gains. House property losses can be carried forward for 8 years against future house property income. Losses from specified businesses
This document summarizes exempted incomes under Section 10 of the Indian Income Tax Act. It lists 87 exempted incomes across various sub-sections of Section 10. Some key exempted incomes include agricultural income, interest income from certain bonds/deposits, leave travel concession, provident fund payments, gratuity, family pension received by central/state govt. employees, scholarship amounts, and dividends received from Indian companies. The document was prepared by Dr. Sangeetha R of Hindusthan College of Arts and Science to outline various types of incomes that are exempted from taxable income calculations under the Income Tax Law in India.
Objectives & Agenda :
One of the heads of income under the Income Tax Act is Income from House Property. Under this head, incomes earned from house properties are chargeable to tax. The webinar covers the aspects of basis of charging income to tax under this head, nature of house properties taxed under the Act, manner of computing income chargeable to tax under this head, deductions available under this head and eventually judicial precedents pertaining to this head of income.
The document summarizes India's Insolvency and Bankruptcy Code of 2016. It consolidates previous bankruptcy laws into a single code and establishes mechanisms for insolvency resolution, regulation, and adjudication. The code aims to promote business and availability of credit. It outlines procedures for insolvency resolution and liquidation of corporate entities. If resolution fails, assets are liquidated according to the order of priority of payments to secured creditors, wages, financial and unsecured debts. The code establishes a new framework for addressing insolvency and bankruptcy in India.
Clubbing of income provisions allow the income of certain taxpayers to be included in the taxable income of another person under specific circumstances outlined in sections 60-64 of the Income Tax Act. This includes income transferred without asset transfer, income from revocable transfers of assets, income of a spouse from a business in which the other spouse has substantial interest without qualifications, income from assets transferred to a spouse or son's wife without adequate consideration, and income of a minor child. The purpose is to prevent tax avoidance by attributing income to the person who effectively controls or benefits from the income.
This document provides definitions and explanations related to takeovers and the Takeover Code in India. It defines key terms like acquirer, control, shares, promoter, person acting in concert, target company. It summarizes regulations around disclosures for acquisition of shares above certain thresholds and the requirement for open offers when acquisition of shares takes the holding above certain levels like 15% and 55%. It also discusses judgements around interpretation of some of these terms.
Preference shares are shares that have preferential rights to dividends and repayment of capital compared to common shares. There are several types of preference shares: cumulative vs non-cumulative, participating vs non-participating, convertible vs non-convertible, and redeemable vs non-redeemable. Preference shares provide benefits like helping companies raise long-term capital and guaranteeing fixed returns, but also have drawbacks like lack of trading and lower returns.
This document discusses the rules for setting off losses from one source or head of income against profits from another in India. It explains that losses can be set off either intra-source (within the same head) or inter-source (across heads), with some exceptions. Unabsorbed losses and depreciation can be carried forward for future set-off for up to 8 years for regular business losses and 4 years for speculative business and race horse losses. The order of set-off is outlined as current year depreciation, then business losses, then unabsorbed depreciation.
The Insolvency and Bankruptcy Code of 2016 consolidated existing bankruptcy laws in India to create a single law governing insolvency and bankruptcy. It aims to simplify and expedite bankruptcy proceedings while protecting creditor interests. Under the Code, a corporate insolvency resolution process is initiated when financial creditors with claims over Rs. 1 crore file an application with the National Company Law Tribunal. If no resolution plan is approved within 180 days, the company enters liquidation. The Code established the Insolvency and Bankruptcy Board of India as the regulator and introduced insolvency professionals to manage proceedings.
SHARES - MEANING , DEFINITION , CHARACTERISTICS AND ITS TYPES.KhushiGoyal20
This document defines shares and discusses their key characteristics and types. Shares represent a portion of a company's total share capital and are divided into parts. Each part is called a share. There are two main types of shares: equity shares and preference shares. Equity shares constitute the major portion of a company's shares and holders have voting rights and rights to profits. Preference shares have preferential rights to dividends and repayment of capital over equity shares. Preference shares can be further classified as cumulative, non-cumulative, convertible, redeemable and participating.
- Under the Indian Income Tax Act, total income is classified and taxed under five heads: salary, house property, capital gains, business/profession, and other sources.
- Income from salary includes remuneration from employment such as basic pay, bonuses, commissions, allowances, and perquisites. Some allowances and perquisites are tax exempt.
- Income from house property is taxed based on the annual rental value of property owned, whether rented out or vacant. Standard deductions can reduce the taxable amount.
- Income from business/profession consists of profits from self-employment or operating a business, after accounting for expenses.
- Capital gains come from the profits on sale of capital
Shares represent ownership interests in a company. There are two main types of shares - equity shares and preference shares. Equity shares represent ownership and voting interests, while preference shares provide a fixed dividend that takes priority over equity shares. Companies can also issue other types of shares like sweat equity shares, which are issued to directors or employees for providing intellectual property or value additions to the company. Sweat equity shares must be approved by shareholders and issued within 12 months at a valuation determined by a registered valuer. They are subject to a 3-year lock-in period from the date of allotment.
Key Takeaways:
- Provisions dealing with set-off and carry forward
- Inter-head and Inter-Source Set-off of Losses
- Carry Forward and Set-off of Losses in Special Cases
This chapter discusses the rules for aggregation of income, set-off and carry forward of losses under the Income Tax Act. Key points include:
- Losses from one source of income can be adjusted against income from another source under the same head.
- Losses can be carried forward for a maximum of 8 assessment years for set-off against future profits. Exceptions apply for some specific heads.
- Loss from one head, except capital gains, can be set off against income from another head. However, business loss cannot be set off against salary income.
- Loss from house property can be set off against other income up to Rs. 2 lakhs annually. Unabsorbed loss can be
Summary of Set off and Carry forward of Losses of Income tax act,1961Bhavesh Trilokani
The document summarizes rules for setting off and carrying forward of losses under the Income Tax Act. It discusses:
- Setting off current year losses against profits of the same source (Section 70) or other heads (Section 71)
- Exceptions for certain losses like speculation business losses
- Carrying forward unused losses to offset future year income according to rules for different heads like house property (Section 71B), business (Section 72), capital gains (Section 74)
- Time limits for carrying losses forward vary from 4 to 8 years depending on the head
- Special rules for firms, companies, and succession cases to determine eligibility to carry losses forward
The document discusses the rules for setting off and carrying forward of business losses under the Income Tax Act. It explains that losses can be set off against profits of the same source (section 70) or different heads of income (section 71) subject to certain restrictions. Unabsorbed losses can be carried forward for a maximum of 8 years for business losses and 4 years for speculation business losses to be set off against future profits.
The document discusses the concepts of set off and carry forward of losses under the Indian Income Tax Act. It explains that losses can be set off against profits of the same year (set off) or carried forward to future years (carry forward) if not fully set off. There are different rules for set off of losses between different sources of income (inter-source adjustment) and between different heads of income (inter-head adjustment). Long-term capital losses can only be set off against long-term capital gains. Speculation losses can only be set off against speculation profits. Unabsorbed depreciation and business losses can be carried forward for set off in future years.
The document summarizes tax credits and the carry forward and set-off of losses under Pakistan's income tax law. It discusses various tax credits available under sections 61-64 of the law for donations, investments, pension contributions, and profit on debt. It also covers rules for setting off current year losses against other income, carrying losses forward for up to 6 years, exceptions for certain losses, group relief for losses between subsidiaries and parents, and limitations.
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Loss from any source can be set off against income from the same source or other sources within the same head of income (intra-head adjustment) or against income from other heads (inter-head adjustment). Losses that cannot be set off can be carried forward for set off in future years. The number of years losses can be carried forward and the heads of income they can be set off against vary according to tax law.
1. Losses can generally be set off against income from the same source in the current or future years (intra-head adjustment) or against other sources in the current year (inter-head adjustment).
2. Certain losses like speculation losses can only be set off against the same type of income. Capital losses can only be carried forward.
3. Unabsorbed losses are carried forward for different periods depending on the income source - usually 4-8 years. Proper returns must be filed to carry losses forward.
The document summarizes the steps for setting off and carrying forward losses under the Indian Income Tax Act:
Step 1 allows inter-source adjustment of losses within the same head of income. Step 2 allows inter-head adjustment across different heads of income in the same year. Step 3 allows carrying forward of losses that cannot be set off in steps 1-2 to future years, with different rules for different types of losses. The document provides details on how losses from house property, business, speculation, capital gains and other sources can be set off and carried forward. It also discusses tax treatment of losses in cases of amalgamation, demerger and business succession.
The document discusses the rules for setting off losses and carrying losses forward under India's income tax laws. It explains that losses can first be set off against other income within the same head of income (intra-head adjustment) and then against income from other heads (inter-head adjustment). Exceptions are listed for certain types of losses. Any losses remaining after set off can be carried forward to future years subject to time limits.
Labour Law Notes, Unit - 4, Bba Llb, Lawssuser32bd0c
The document discusses various aspects of charitable trusts and donations under the Income Tax Act in India. It defines charitable purpose under section 2(15) and explains the different forms charitable institutions can take such as public charities, societies, non-profit companies, etc. It also outlines the purposes for forming trusts including hospitals, spiritual centers, orphanages, schools and more. The penalties and prosecutions for tax evasion are also summarized.
- Dividend income received by shareholders is now taxable in their hands at normal tax rates instead of being exempt as was the case earlier.
- Deduction of up to 20% of dividend income is allowed for interest expenses incurred to earn the dividend income. No other expenses are deductible.
- For companies receiving dividends, a deduction under section 80M is available if the dividend amount is distributed to shareholders one month before the income tax return filing date.
The document summarizes key income tax proposals in India's Union Budget for the assessment year 2021-22. It outlines that income tax rates remain unchanged, with rates of 5%, 20%, and 30% applied to income slabs. It also introduces a new, optional tax regime with lower rates and removal of exemptions/deductions. Key benefits of the new regime include lower taxes but loss of deductions like HRA and standard deduction. The document also discusses changes to residential status rules and removal of dividend distribution tax.
This document provides an overview of the Indian Bonus Act of 1965. Some key points:
- The Act was passed to provide for the payment of bonus to employees in certain establishments based on profits or production.
- It applies to factories and other establishments with 20 or more employees.
- Eligible employees must have worked at least 30 days in an accounting year to qualify for bonus.
- Bonus is calculated based on allocable surplus, with a minimum of 8.33% of wages and maximum of 20% of wages.
- Any disputes around bonus payments are treated as industrial disputes and can be referred to labor courts.
- The Act establishes requirements for maintenance of registers and records by employers and provides
The Chapter comprises of Carry Forward and Set Off of Losses in the case of Companies, Computation of Taxable Income of Companies; Computation of Corporate Tax Liability; Minimum Alternate Tax; and Tax on Distributed Profits of Domestic Companies. Surcharge, Minimum Alternate Tax, Problems on MAT.
The Finance Act, 2022 has inserted a new section 79A to the Income-tax Act to restrict set off of losses consequent to search, requisition and survey. It has been provided that in case the total income of any previous year of an assessee includes any undisclosed income detected as a result of:
(a) Search initiated under section 132; or
(b) A requisition made under section 132A; or
(c) A survey conducted under section 133A other than under section 133A(2A).
Then, no set-off of any loss, whether brought forward or otherwise, or unabsorbed depreciation, shall be allowed against such undisclosed income while computing the total income of the assessee for such previous year.
The total income of accompany is also computed in the manner in which income of any assessee is computed. A company is assessed in its own name; i.e. a company pays tax on its income as a distinct unit. A tax paid by a company is not deemed to have been paid on behalf of its shareholders. It is determined as follows:
1. First ascertain income under the different heads of income.
2. Income of other persons may be included in the income of the company under sections 60 and 61( para 206 and 207)
3. Current and brought forward losses should be adjusted according to the provisions of sections 70 to 80 (as per para 226 to 233).Para 335 of section 79 provides all the provisions regarding set off and carry forward of losses of closely held companies.
4. The total income so derived under computation of different heads of income is “Gross Total Income”.
5. Following deductions are allowed from the Gross total income so computed, under section 80C to 80 U
An actuarial valuation estimates future liabilities for defined benefit retirement plans by making financial and demographic assumptions. It is required for accounting standards and involves discounting projected benefits to determine present values of obligations and costs. Actuarial valuations are complex and normally performed annually by a qualified actuary. Applicable companies must engage an actuary while some insurance policies can substitute for a valuation. Common defined benefit plans include gratuity and pension plans.
This document provides an overview of deductions allowed for business profits and gains under the Indian Income Tax Act. It discusses specific deductions like rent, repairs, taxes, depreciation, and others. It also describes the general scheme for calculating taxable profits, including the methods of accounting, specific vs general deductions, and presumptive taxation provisions. The key points covered are the types of expenses that are deductible, the conditions for claiming depreciation, and the overall framework for determining taxable business income.
Income Tax Amendments Applicable to AY 2020-21 (FY 2019-20)AmitJain910
This document discusses important amendments to consider while filing income tax returns for assessment year 2020-21 relating to rebates, surcharges, tax rates, deductions, depreciation, TDS provisions, capital gains exemption, and more. Key points include a reduced MAT rate of 15%, option to purchase two homes for capital gains exemption, increased standard deduction and TDS limits on rent and cash withdrawals.
This document discusses various aspects of dividends, including:
- The definition of a dividend as profits distributed to shareholders.
- The types and forms of dividends such as interim, final, special dividends.
- The sources of dividends which can include current year's profits, previous years' undistributed profits, or capital profits.
- Key processes around dividend declaration including ascertainment of distributable profits, provisions for depreciation, declaration, payment and handling of unclaimed dividends.
- Important dates associated with dividends like declaration, ex-dividend, record and payment dates.
The document discusses various aspects of dividends, including:
1) Types of dividends such as interim, final, special dividends.
2) Sources of dividends including current year's profits, previous years' undistributed profits, and capital profits.
3) Procedures for declaring dividends including recommendation by the board of directors, approval by shareholders, payment within 30 days of declaration.
Similar to Clubbing off Income And Set off and Carry Forward of Losses (20)
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
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 Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
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.
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.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
2. CLUBBING OF INCOME
Section 60 to section 65
Income of the other person is included in the
income of the assesses
3. Situations in case of clubbing of Income
Transfer of income without
transfer of Asset (Section 60)
• Revocable transfer is generally a transfer in
which the transferor directly or indirectly exercises
control/right over the asset transferred or over
the income from the asset.
Income arising form Revocable
transfer of asset (Sec 61)
• Substantial interest refers to holding of at least 20%
of the voting Rights
Income by way of Remuneration
from a concern in which individual
has substantial interest (Section
64(1)(2)Income arising to Spouse from an asset
transferred without adequate consideration
Section 64(1) (4) – other then House
property
Transfer of asset for the benefit of
spouse Section 64(1) (7)
Income arising to sons wife from the assets
transferred without adequate consideration by
the father-in-law or mother-in-law Section 64(1)
(6)
Transfer of asset for the benefit of
sons wife Section 64(1) (8)
4. CLUBBING OF MINIORS INCOME (Sec 64
(1A)
All Income of the minor is
included in the income of his
parent.
The income of the minor will
be included in the income of
that parent, whose income is
greater.
It will continued to be
included in that parent
income
Sec 10 (32) exemption in
respect of clubbed income of
minor
1500 exemption in respect of
each minor child. However, if
the income is less than 1500
so entire amount is exempt
from tax.
5. Cross Transfers
Transfers with the
Mutual understanding
Conversation of self
occupied Property into
property of Hindu
undivided family (
Section 64 (2) )
• INCOME INCLUDES LOSS
The income mentioned under section 64 (1) and section 64
(2) would also
include loss as per explanations given. Cases wherein the
specified
income derived is a loss then such loss should be taken into
account while
calculating the total income of the individual.
6. Set off of Losses
•Inter Source adjustment (Section 70)
•Inter Head adjustment (Section 71)
CARRY FORWARD OF BUSINESS
LOSSES
(SECTION 72 AND SECTION 80)
7. Steps to Set off of losses
Step1: Intra source adjustment
Step2: Inter–head Adjustment
Step3: Carry forward of loss only if a loss cannot be
set of under Step1 and step 2
However, Inter source set off is not permissible
under following cases
Long term capital loss (Section 70(3))
Short term capital loss is allowed to be set off against both
the short term capital gain and long term capital gain. However,
long term capital loss can be set-off only against long term
capital gain.
8. •Speculation loss (section 73(1))
Note: Losses from other business can be adjusted
against Profits from speculation business.
• Loss from owning and
maintaining of race horses
(Section 74 A (3))
•Loss from Specified business
(Section 73A(1))
Note: Specified Business Specified us Sec 35AD
9. INTER HEAD ADJUSTMENT
(Section 71)
Loss under one head of income can be adjusted or set off
against income under another head.
I. Note: where the net results of the computation under
any head of income (other than ‘capital gains’) is a loss,
the assesses can set off such loss against his income
assessable for that assessment year under any head,
including capital gains.
II. Profit and gains of business and profession loss can not
be setoff against income from “salaries”.
III. Capital gain loss that loss can not set-off against income
under any other head.
IV. Maximum loss from house property which can be set-off
against income from any other head is Rs. 2 Lakhs.
V. Speculation loss , loss from the activity of owning and
maintaining of race horse and loss from specified
business (sec 35AD) cannot be set off against income
under any other head.
10. SET OFF AND CARRY FORWARD OF LOSSES
FROM HOUSE PROPERTY(SEC 71B)
Up to 2lakh is set off against any head of income during the
same year. Unabsorbed loss will be carried forward to fallowing
assessment year to be set off against same head only. Loss can
be carried forward up to 8 assessment years immediately
succeeding assessment year in which loss was first computed.
It is to be Remembered that once particular loss is carried
forward , it can be only set off against the income from same
head in forthcoming assessment years.
SET OFF AND CARRY FORWARD BUSINESS
LOSSES (SEC 72 & 80)
The successor of the business can not carry forward
or set off losses of his predecessor except in case
succession by inheritance.
A business loss can be carried forward for a
maximum period of 8 assessment years.
11. Set off and carry forward of accumulated loss
and/or unabsorbed Depreciation in Amalgamation
(Sec 72A)
Conditions to carry forward of losses
1. Company owning an industrial undertaking or
ship or a hotel with another company; or
2. Amalgamation of a public sector company or a
company engaged in the business of operating
aircraft with another public sector company or
company engaged in similar business; or
3. Amalgamation of a banking company with a
specified bank.
12. Amalgamated company has to fulfill the following
conditions to avail the benefit:
1. It continuously holds 75% of the book value of the fixed assets
acquired in a scheme of amalgamation for at least five years from
the date of amalgamation
2. It continues to carry on business of amalgamating company for at
least five years from the date of amalgamation
3. It achieves at least the level of 50% of the installed capacity before
the end of 4 years from the date of amalgamation and maintains that
level till the 5th year
Amalgamating company has to fulfill the following
conditions:
1. It was engaged in the business in which the accumulated loss has
occurred or the unabsorbed depreciation remains unabsorbed for
three or more years.
2. It has continuously held 75% of the book value of fixed assets held
by it two years prior to amalgamation.
13. SET OFF AND CARRY FORWARD OF LOSSES IN
SPECULATION BUSINESS (SEC 73)
Loss from speculation business neither set off in the
same year against any other non-speculation income
nor can be carried forward and set of against other
income in the subsequent years.
Speculation business is exclusive area it cannot be
set off with any other source of income.
SET OFF AND CARRY FORWARD OF LOSSES IN
SPECIFIED BUSINESS (SEC 73A)
Loss from specified business shall be set off only
against profits and gains of other specified business
gains only. Losses can be carried forward to
indefinite numbers of years for set off against income
form specified business only.
Return of income is must in case of carry forward of
14. SET OFF AND CARRY FORWARD OF LOSSES ACTIVITY
OF OWNING AND MAINTAINING OF RACE HORSES (SEC
74A(3))
Short term capital loss can be set off against any
capital gains.
Long term capital loss only set off against only
long term capital gain only.
Net loss under the head capital gains cannot be
set off against income under any other head.
Any unabsorbed losses can be carried forward to
the 8 assessment years.
SET OFF AND CARRY FORWARD OF
LOSSES CAPITAL GAINS (SEC 74)
Losses can be carried forward for a maximum
period of 4 assessment years.
15. Order of Set off and carry forward of
losses
As per the provision of section 72(2) brought forward
business loss is to be set-off before setting off
unabsorbed depreciation. Therefore the order in
which set-off will be effected is as follows.
1. Current year depreciation/Current year capital
expenditure on scientific research and current year
expenditure on family planning, to the extent
allowed.
2. Brought forward loss from business/ Profession
(Section 72 (1))
3. Unabsorbed depreciation (Section 32(2))
4. Unabsorbed Capital Expenditure on scientific
research (section 35(4) )
5. Unabsorbed capital expenditure on family planning
(sec 36 (1) (ix))