AGRICULTURAL INCOME
Sec.10(1) exempts Agricultural Income from Income-Tax. Bu virtue of Sec.2(1)a the expression “Agricultural Income” means : •Any Rent or Revenue derived from Land which is situated in India and is used for
agricultural purposes. [Sec. 2(1A)(a)] •Any income derived from such land : Use for Agricultural purposes ; or Used for agricultural operations means- irrigating and harvesting , sowing, weeding, digging, cutting etc. It involves employment of some human skill, labour and energy to get some income from land Condition-1 : Income derived from Land
Condition-2 : Land is used for Agricultural Purposes
Condition-3 : Land is situated in India
Commissioner of Income Tax Vs. Anthropic, Inc.
[2019] 108 taxmann.com 564 (Karnataka)
- The Court held that the search was valid even though conducted at residential premises not used for business purposes, since the assessee may possess incriminating documents at their residence. Location of premises alone does not invalidate search under section 132.
Income Of Other Persons, Included In Assesses Total IncomeAdmin SBS
Who is an assessee?
Extract of sec 2(7)(a)
Assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes
every person in respect of whom any proceeding under this Act has been taken for the assessment of HIS income or
of the Income of any other person in respect of which he is assessable
or of the loss sustained by him or by such other person
or of the amount of refund due to him or to such other person
The document discusses the law on arrest in India according to the Code of Criminal Procedure (CrPC). It defines arrest and differentiates it from custody. It outlines the types of arrest that can be made with or without a warrant by police officers, magistrates or private persons. It also describes the rights of arrested persons and important Supreme Court judgements related to arrest procedures and compliance with legal safeguards.
All about Search and Seizure. What to do during search. When can search and seizure be invoked. How to challenge the search and how to recover assets which have been seized. Chronicled in detail with multiple case laws.
The document discusses fundamental principles relating to tax laws and concepts that should guide governments in designing equitable taxation regimes. It outlines 11 such principles - including adequacy, broad basing taxes, compatibility between different taxes, convenience for taxpayers, and equity. It also discusses constitutional limitations on taxation powers in India, important case laws, the distinction between taxes, duties, fees and cess. Other concepts covered include tax avoidance vs. tax evasion, double taxation, tax planning vs. tax management, an overview of tax litigation processes, and resolving disputes through various administrative and quasi-judicial mechanisms before approaching courts.
PERSON:
Income-tax is charged in respect of the total income of the previous year of every person. Hence, it is important to know the definition of the word person. As per section 2(31),Person includes:
an Individual
a Hindu Undivided Family (HUF)
a Company
a Firm
an Association of Persons or a Body of Individuals (BOI) whether incorporated or not
a Local Authority
every Artificial, Juridical person, not falling within any of the above
Charge of Income Tax
Income tax is charged in assessment year at rates specified by the Finance Act applicable on 1st April of the relevant assessment year.
It is charged on the total income of every person for the previous year.
Total Income is to be computed as per the provisions of the Act
Income tax is to be deducted at source or paid in advance wherever required under the provision of the Act.
Person u/s 2(31) includes,
An Individual,
Hindu Undivided Family (HUF),
A Company,
A Firm,
An Association of Persons(AOP) or Body of Individuals (BOI),
A Local Authority,
Every other Artificial Juridical Person
Incidence of Tax
Incidence of Tax
The document provides an overview of key concepts in India's income tax law, including definitions of common terms like person, assessee, income, residential status, taxable income heads, and tax exemptions. It summarizes procedures for determining tax liability and exemptions for various types of retirement payments like gratuity, pension, and leave encashment.
Commissioner of Income Tax Vs. Anthropic, Inc.
[2019] 108 taxmann.com 564 (Karnataka)
- The Court held that the search was valid even though conducted at residential premises not used for business purposes, since the assessee may possess incriminating documents at their residence. Location of premises alone does not invalidate search under section 132.
Income Of Other Persons, Included In Assesses Total IncomeAdmin SBS
Who is an assessee?
Extract of sec 2(7)(a)
Assessee means a person by whom any tax or any other sum of money is payable under this Act, and includes
every person in respect of whom any proceeding under this Act has been taken for the assessment of HIS income or
of the Income of any other person in respect of which he is assessable
or of the loss sustained by him or by such other person
or of the amount of refund due to him or to such other person
The document discusses the law on arrest in India according to the Code of Criminal Procedure (CrPC). It defines arrest and differentiates it from custody. It outlines the types of arrest that can be made with or without a warrant by police officers, magistrates or private persons. It also describes the rights of arrested persons and important Supreme Court judgements related to arrest procedures and compliance with legal safeguards.
All about Search and Seizure. What to do during search. When can search and seizure be invoked. How to challenge the search and how to recover assets which have been seized. Chronicled in detail with multiple case laws.
The document discusses fundamental principles relating to tax laws and concepts that should guide governments in designing equitable taxation regimes. It outlines 11 such principles - including adequacy, broad basing taxes, compatibility between different taxes, convenience for taxpayers, and equity. It also discusses constitutional limitations on taxation powers in India, important case laws, the distinction between taxes, duties, fees and cess. Other concepts covered include tax avoidance vs. tax evasion, double taxation, tax planning vs. tax management, an overview of tax litigation processes, and resolving disputes through various administrative and quasi-judicial mechanisms before approaching courts.
PERSON:
Income-tax is charged in respect of the total income of the previous year of every person. Hence, it is important to know the definition of the word person. As per section 2(31),Person includes:
an Individual
a Hindu Undivided Family (HUF)
a Company
a Firm
an Association of Persons or a Body of Individuals (BOI) whether incorporated or not
a Local Authority
every Artificial, Juridical person, not falling within any of the above
Charge of Income Tax
Income tax is charged in assessment year at rates specified by the Finance Act applicable on 1st April of the relevant assessment year.
It is charged on the total income of every person for the previous year.
Total Income is to be computed as per the provisions of the Act
Income tax is to be deducted at source or paid in advance wherever required under the provision of the Act.
Person u/s 2(31) includes,
An Individual,
Hindu Undivided Family (HUF),
A Company,
A Firm,
An Association of Persons(AOP) or Body of Individuals (BOI),
A Local Authority,
Every other Artificial Juridical Person
Incidence of Tax
Incidence of Tax
The document provides an overview of key concepts in India's income tax law, including definitions of common terms like person, assessee, income, residential status, taxable income heads, and tax exemptions. It summarizes procedures for determining tax liability and exemptions for various types of retirement payments like gratuity, pension, and leave encashment.
This document provides a guide to the African human rights system, specifically focusing on the African Charter on Human and Peoples' Rights which was adopted in 1981. It summarizes the history of the Charter, its key features, subsequent protocols that supplemented it, and institutions it established like the African Commission on Human and Peoples' Rights. The summary celebrates the progress the Charter has made in establishing human rights standards and mechanisms in Africa over the past 30 years since its adoption.
Rights of tenants under tamilnadu rent control actAltacit Global
The document summarizes some of the key rights of tenants under the Tamil Nadu Rent Control Act. It discusses tenants' rights to fair rent as determined by a formula, protection from unreasonable eviction except under specified grounds, and the right to deposit rent with a controller if the landlord's address is unknown. It also briefly describes lease agreements as being covered by rent control laws, while lease and license agreements of less than 12 months are exempt from these laws.
Wealth tax is levied at 1% on net wealth exceeding Rs. 30 lakhs as of March 31. Net wealth is total assets minus exempted assets and debts incurred to purchase taxable assets. Individuals and HUFs resident in India are taxed on worldwide assets, while non-residents are taxed only on Indian assets. Common taxable assets include cars, boats, jewelry, urban land and cash in hand exceeding Rs. 50,000. One residential house and certain other assets are exempt from tax. Wealth tax returns are due by July 31 if not liable for audit, else by September 30, with late filing penalties of 1% per month. Wealth tax was abolished from FY 2016
Suits filed by Aliens, by or against Foreign Rulers and AmbassadorsDhanashreeVarma
The document summarizes key provisions around suits filed by or against aliens, foreign states, rulers and ambassadors under the Code of Civil Procedure, 1908. It discusses that aliens, whether friends or enemies, can file suits in India if the cause of action arose in India. Foreign states can file suits to enforce rights of their rulers or public officers. When a foreign ruler is involved in a suit, the central government will appoint a representative. Certain conditions must be met to file suit against a foreign ruler, and consent is needed to execute decrees against foreign states or rulers.
This document summarizes key provisions from the Indian Evidence Act relating to relevance of evidence and admissibility of confessions. It discusses how evidence may only be given for facts in issue or relevant facts. It explains the doctrine of res gestae and how facts forming part of the same transaction are relevant. It also discusses relevance of facts relating to motive, preparation, conduct and opportunity. Provisions around admissions and confessions are summarized, including the difference between judicial and extra-judicial confessions.
The Lentin Commission report investigated the deaths of 14 patients in 1986 who died from acute renal failure caused by adulterated glycerol supplied by a pharmaceutical company. Over 17 months, the commission uncovered a nexus between politicians, the FDA, and drug manufacturers. It revealed issues with 300 drug formulations and found 20% of drug samples to be defective. The commission's report led to the resignation of the health minister and discussed various medical deviances like issuing false certificates and engaging in illegal activities for monetary gain. It noted that while most doctors act ethically, some engage in unprofessional behavior for profit in violation of medical codes of conduct and laws.
Effects of acknowledgement of limitation actHinal Thakkar
The document discusses acknowledgement under Section 18 of the Limitations Act. Some key points:
- An acknowledgement must admit liability for a debt and be in writing and signed before the limitation period expires. It renews the limitation period from the signing date.
- The writing does not need to specify the exact property or right, and can include a refusal to pay or set-off claim. It can be addressed to someone other than the entitled person.
- For an acknowledgement to be valid, it must acknowledge an existing liability and relate to a present subsisting legal relationship between the parties, even if it does not promise payment or specify the liability. The intention can be inferred from the admission.
The Payment of Bonus Act, 1961 was enacted based on recommendations from a commission established to comprehensively review the payment of employee bonuses. Prior to this law, bonus payments were determined by court rulings and were not a statutory right for employees. The act made bonus payments a statutory obligation for employers and statutory right for employees. It arose from a history of bonus payments in India dating back to World War I when industries paid bonuses due to high profits from the war effort, though bonuses were not a consistent legal right at that time.
Objectives & Agenda :
Chapter XXII of the Income-tax Act, 1961 discusses various Offences under the Income-tax Act and the applicable Prosecutions for such offences. These provisions act as a tool for enabling the Income-tax Officers to effectively enforce Income-tax laws, to deter tax avoidance and evasion and to punish wilful defaulters.
Sections Covered: 275A - 280D
The Wealth Tax Act, which came into force from AY1957-58 occupies place of importance in the Indian Taxation System. Though it has got abolished from AY 2016-17, it is in force prior to that period..
Lecture notes on scope of total income and residental status under income ta...Dr. Sanjay Sawant Dessai
Lecture notes prepared for the students of Income tax , based on Income tax Act of India 1961. topic covered are Residential status and scope of total income of assessee.
1) Private international law governs issues related to marriage such as validity, dissolution, and inheritance across legal jurisdictions.
2) Generally, the law of the place where the marriage was solemnized (lex loci celebrationis) determines the formal validity of the marriage. However, some countries also consider the law of the domicile (lex domicilii).
3) In India, Hindu and Muslim marital laws have different requirements for a valid marriage. Under Hindu law, saptapadi is essential while Muslim law treats marriage as a civil contract requiring an agreement with witnesses.
This file deals with the Section 60-64 of CPC,1908, which talks about the Attachment of property in execution proceedings.
I have tried to make it easier for the students to understand the concept.
In case of any query the undersigned can be reached by email, the address of which has been given in the third last slide.
[Protection of Women from Domestic Violence Act, 2005].pptxunani mous
The document discusses India's Protection of Women from Domestic Violence Act of 2005. It defines key terms like domestic violence, domestic relationship, shared household, and aggrieved person. Domestic violence includes physical, sexual, verbal, emotional, and economic abuse. A domestic relationship includes relations through marriage, blood, adoption, and live-in partnerships. Courts have interpreted the law broadly to protect women experiencing domestic abuse.
The document outlines rules for framing lawsuits and joining multiple causes of action in civil suits under the Code of Civil Procedure. It states that every suit should aim to provide a final decision on all matters in dispute. It also lays out that a plaintiff must include their whole claim regarding a cause of action in one suit, and cannot later sue regarding any parts omitted. The rules allow joining multiple causes of action against the same defendant, with jurisdiction based on the total subject matter. Objections to misjoinder must be raised at the earliest opportunity.
What is Agricultural Income ?
Section 2 (1A) of the Income tax Act,1961
Agricultural income means :
Revenue generated through rent or lease of a land in India that is used for agricultural purposes ;
Any income derived from commercial sale of produce gained from an agricultural land
Any income from farm building.
Key points to validly classify an income as “agricultural income”
Income should be from an existent piece of land in India ;
Income should be from a piece of land that is used for agricultural operations ;
Income should stem from produce achieved after cultivation of the land. Cultivation of land is a must ;
Income can be from a land that is not under the assessee’s ownership. i.e. ownership of Land is not essential.
To analyse and understand the provisions of Foreign Exchange Management (Adjudication Proceedings And Appeal) Rules, 2000. We shall understand the provisions relating to imposition of penalty, the adjudicating authority, inquiry proceedings and the various aspects of appeal.
With current new amendments and law adding on in the Indian Judiciary, its important to know and be well aware of the statutes. You can consider this subject as 'Grammar of Law'. Teaches you exactly are the statutes made by the Legislative authorities as well. From use of particular language to construction of words this presentation almost includes all the part of how a statute is made, how they are learned and how exactly are the legal maxims used.
The document discusses the Copyright Board of India, which is constituted under the Copyright Act of 1957. It has the following key responsibilities:
1. The Copyright Board hears appeals against orders of the Registrar of Copyright and has powers to regulate its own procedures.
2. It is deemed to be a civil court and has powers like a civil court, such as summoning witnesses and enforcing attendance.
3. The Copyright Board decides matters like whether a work has been published, settles disputes related to copyright assignment, and grants compulsory licenses in certain situations.
Income-tax is charged in respect of the total income of the previous year of every person. Hence, it is important to know the definition of the word person.
The document is a lecture note on basic concepts of taxation from Chanderprabhu Jain College of Higher Studies & School of Law. It defines key terms like taxes, direct and indirect taxes, income, assessment year, financial year. It distinguishes between capital and revenue receipts and discusses the differences between direct and indirect taxes. It also explains the concepts of application of income versus diversion of income and gives examples. Finally, it provides an overview of the different sections related to assessment under the Income Tax Act.
This document provides a guide to the African human rights system, specifically focusing on the African Charter on Human and Peoples' Rights which was adopted in 1981. It summarizes the history of the Charter, its key features, subsequent protocols that supplemented it, and institutions it established like the African Commission on Human and Peoples' Rights. The summary celebrates the progress the Charter has made in establishing human rights standards and mechanisms in Africa over the past 30 years since its adoption.
Rights of tenants under tamilnadu rent control actAltacit Global
The document summarizes some of the key rights of tenants under the Tamil Nadu Rent Control Act. It discusses tenants' rights to fair rent as determined by a formula, protection from unreasonable eviction except under specified grounds, and the right to deposit rent with a controller if the landlord's address is unknown. It also briefly describes lease agreements as being covered by rent control laws, while lease and license agreements of less than 12 months are exempt from these laws.
Wealth tax is levied at 1% on net wealth exceeding Rs. 30 lakhs as of March 31. Net wealth is total assets minus exempted assets and debts incurred to purchase taxable assets. Individuals and HUFs resident in India are taxed on worldwide assets, while non-residents are taxed only on Indian assets. Common taxable assets include cars, boats, jewelry, urban land and cash in hand exceeding Rs. 50,000. One residential house and certain other assets are exempt from tax. Wealth tax returns are due by July 31 if not liable for audit, else by September 30, with late filing penalties of 1% per month. Wealth tax was abolished from FY 2016
Suits filed by Aliens, by or against Foreign Rulers and AmbassadorsDhanashreeVarma
The document summarizes key provisions around suits filed by or against aliens, foreign states, rulers and ambassadors under the Code of Civil Procedure, 1908. It discusses that aliens, whether friends or enemies, can file suits in India if the cause of action arose in India. Foreign states can file suits to enforce rights of their rulers or public officers. When a foreign ruler is involved in a suit, the central government will appoint a representative. Certain conditions must be met to file suit against a foreign ruler, and consent is needed to execute decrees against foreign states or rulers.
This document summarizes key provisions from the Indian Evidence Act relating to relevance of evidence and admissibility of confessions. It discusses how evidence may only be given for facts in issue or relevant facts. It explains the doctrine of res gestae and how facts forming part of the same transaction are relevant. It also discusses relevance of facts relating to motive, preparation, conduct and opportunity. Provisions around admissions and confessions are summarized, including the difference between judicial and extra-judicial confessions.
The Lentin Commission report investigated the deaths of 14 patients in 1986 who died from acute renal failure caused by adulterated glycerol supplied by a pharmaceutical company. Over 17 months, the commission uncovered a nexus between politicians, the FDA, and drug manufacturers. It revealed issues with 300 drug formulations and found 20% of drug samples to be defective. The commission's report led to the resignation of the health minister and discussed various medical deviances like issuing false certificates and engaging in illegal activities for monetary gain. It noted that while most doctors act ethically, some engage in unprofessional behavior for profit in violation of medical codes of conduct and laws.
Effects of acknowledgement of limitation actHinal Thakkar
The document discusses acknowledgement under Section 18 of the Limitations Act. Some key points:
- An acknowledgement must admit liability for a debt and be in writing and signed before the limitation period expires. It renews the limitation period from the signing date.
- The writing does not need to specify the exact property or right, and can include a refusal to pay or set-off claim. It can be addressed to someone other than the entitled person.
- For an acknowledgement to be valid, it must acknowledge an existing liability and relate to a present subsisting legal relationship between the parties, even if it does not promise payment or specify the liability. The intention can be inferred from the admission.
The Payment of Bonus Act, 1961 was enacted based on recommendations from a commission established to comprehensively review the payment of employee bonuses. Prior to this law, bonus payments were determined by court rulings and were not a statutory right for employees. The act made bonus payments a statutory obligation for employers and statutory right for employees. It arose from a history of bonus payments in India dating back to World War I when industries paid bonuses due to high profits from the war effort, though bonuses were not a consistent legal right at that time.
Objectives & Agenda :
Chapter XXII of the Income-tax Act, 1961 discusses various Offences under the Income-tax Act and the applicable Prosecutions for such offences. These provisions act as a tool for enabling the Income-tax Officers to effectively enforce Income-tax laws, to deter tax avoidance and evasion and to punish wilful defaulters.
Sections Covered: 275A - 280D
The Wealth Tax Act, which came into force from AY1957-58 occupies place of importance in the Indian Taxation System. Though it has got abolished from AY 2016-17, it is in force prior to that period..
Lecture notes on scope of total income and residental status under income ta...Dr. Sanjay Sawant Dessai
Lecture notes prepared for the students of Income tax , based on Income tax Act of India 1961. topic covered are Residential status and scope of total income of assessee.
1) Private international law governs issues related to marriage such as validity, dissolution, and inheritance across legal jurisdictions.
2) Generally, the law of the place where the marriage was solemnized (lex loci celebrationis) determines the formal validity of the marriage. However, some countries also consider the law of the domicile (lex domicilii).
3) In India, Hindu and Muslim marital laws have different requirements for a valid marriage. Under Hindu law, saptapadi is essential while Muslim law treats marriage as a civil contract requiring an agreement with witnesses.
This file deals with the Section 60-64 of CPC,1908, which talks about the Attachment of property in execution proceedings.
I have tried to make it easier for the students to understand the concept.
In case of any query the undersigned can be reached by email, the address of which has been given in the third last slide.
[Protection of Women from Domestic Violence Act, 2005].pptxunani mous
The document discusses India's Protection of Women from Domestic Violence Act of 2005. It defines key terms like domestic violence, domestic relationship, shared household, and aggrieved person. Domestic violence includes physical, sexual, verbal, emotional, and economic abuse. A domestic relationship includes relations through marriage, blood, adoption, and live-in partnerships. Courts have interpreted the law broadly to protect women experiencing domestic abuse.
The document outlines rules for framing lawsuits and joining multiple causes of action in civil suits under the Code of Civil Procedure. It states that every suit should aim to provide a final decision on all matters in dispute. It also lays out that a plaintiff must include their whole claim regarding a cause of action in one suit, and cannot later sue regarding any parts omitted. The rules allow joining multiple causes of action against the same defendant, with jurisdiction based on the total subject matter. Objections to misjoinder must be raised at the earliest opportunity.
What is Agricultural Income ?
Section 2 (1A) of the Income tax Act,1961
Agricultural income means :
Revenue generated through rent or lease of a land in India that is used for agricultural purposes ;
Any income derived from commercial sale of produce gained from an agricultural land
Any income from farm building.
Key points to validly classify an income as “agricultural income”
Income should be from an existent piece of land in India ;
Income should be from a piece of land that is used for agricultural operations ;
Income should stem from produce achieved after cultivation of the land. Cultivation of land is a must ;
Income can be from a land that is not under the assessee’s ownership. i.e. ownership of Land is not essential.
To analyse and understand the provisions of Foreign Exchange Management (Adjudication Proceedings And Appeal) Rules, 2000. We shall understand the provisions relating to imposition of penalty, the adjudicating authority, inquiry proceedings and the various aspects of appeal.
With current new amendments and law adding on in the Indian Judiciary, its important to know and be well aware of the statutes. You can consider this subject as 'Grammar of Law'. Teaches you exactly are the statutes made by the Legislative authorities as well. From use of particular language to construction of words this presentation almost includes all the part of how a statute is made, how they are learned and how exactly are the legal maxims used.
The document discusses the Copyright Board of India, which is constituted under the Copyright Act of 1957. It has the following key responsibilities:
1. The Copyright Board hears appeals against orders of the Registrar of Copyright and has powers to regulate its own procedures.
2. It is deemed to be a civil court and has powers like a civil court, such as summoning witnesses and enforcing attendance.
3. The Copyright Board decides matters like whether a work has been published, settles disputes related to copyright assignment, and grants compulsory licenses in certain situations.
Income-tax is charged in respect of the total income of the previous year of every person. Hence, it is important to know the definition of the word person.
The document is a lecture note on basic concepts of taxation from Chanderprabhu Jain College of Higher Studies & School of Law. It defines key terms like taxes, direct and indirect taxes, income, assessment year, financial year. It distinguishes between capital and revenue receipts and discusses the differences between direct and indirect taxes. It also explains the concepts of application of income versus diversion of income and gives examples. Finally, it provides an overview of the different sections related to assessment under the Income Tax Act.
The document discusses residential status and its importance in determining the scope of income tax liability in India. It defines the different types of residential statuses - resident, non-resident, and resident but not ordinarily resident. It then outlines the criteria for determining each status and how the scope of total taxable income varies based on residential status. The document also provides an extensive list of income that is exempt from income tax in India.
Service Tax was introduced in 1994 vide Finance Act, 1994 with 3 SERVICES namely, Brokerage charged by stockbroker, Telephone services & premium on General Insurance Services.
Introduction:
•Service Tax was introduced in 1994 vide Finance Act, 1994 with 3 SERVICES
namely, Brokerage charged by stockbroker, Telephone services & premium on
General Insurance Services. •Applicable to whole of India except Jammu & Kashmir. •Today there are 109 services under section 65(105), which are considered taxable
Managerial economics deals with the application of the economic concepts, theories, tools, and methodologies to solve practical problems in a business. ... As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis, correlation and calculus.
The document summarizes various exemptions from income tax under Section 10 of the Income Tax Act. It discusses exemptions for agricultural income, income received as a Hindu Undivided Family member, share of profits from a partnership firm, leave travel concession, gratuity received, compensation received during voluntary retirement, amounts received from life insurance policies, payments from provident funds, payments from approved superannuation funds, house rent allowance, special allowances like conveyance allowance, and daily allowance. Conditions for availing exemptions are explained for various allowances and payments.
Cost and management accounting• Provides management with costs for products, inventories, operations or functions and compares actual to predetermined data • It also provides a variety of data for many day-to-day decision as well as essential information for long-range decisions
Business is influenced not only by what decisions are taken within the firm but also by the general business environment. General decisions are based on two factors : • External Factors : This includes all those factors which are outside the control of business. The firm can only make timely adjustment to these external factors. • Internal Factors : This includes all those factors which are within the control.
INCOME TAXXX RELATED POWER POINT PRESENTATIONBojamma2
- The document discusses various topics related to income tax in India including the introduction of income tax, the need to pay taxes, tax slabs, key terms, types of income such as salary income and its components, exemptions under section 10 including leave travel allowance and house rent allowance, and deductions available under the Income Tax Act.
- It provides an overview of the history and development of income tax in India since 1860 and explains the various expenditures incurred by the government that require funding through tax collection.
- The document also addresses common questions around why citizens need to pay taxes and what the government does with the tax revenue collected.
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, growth rate, gross domestic product and inflation.
The document summarizes various exemptions under the Income Tax Act of 1961 in India. It discusses exemptions for agricultural income, income received from Hindu Undivided Families and partnership firms, allowances for government employees, death-cum-retirement gratuity, provident funds, house rent allowance, educational scholarships, allowances for Members of Parliament and State Legislatures, awards and rewards, and pensions for gallantry award winners and their families. The document provides details on the sections under which these exemptions are provided and conditions for availing exemptions.
This document contains lecture notes on the topic of financial management from Chanderprabhu Jain College. It includes definitions and explanations of key concepts like the meaning and objectives of financial management, the scope and functions of financial managers, capital budgeting methods like NPV and IRR, the cost of capital, capital structure theories, and leverage. The document provides an overview of these essential aspects of financial management taught in the course.
A tax may be defined as a "pecuniary burden laid upon individuals or property owners to support the government, a payment exacted by legislative authority. A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority". Taxes consist of direct taxor indirect tax, and may be paid in money or as its labour equivalent (often but not always unpaid labour). India has a well developed taxation structure. The tax system in India is mainly a three tier system which is based between the Central, State Governments and the local government organizations.
Reservation of Company Name:
First , the applicants are required to apply for a name in Form No. INC-1. The fee for seeking a name approval is Rs.1000/- as prescribed and 60 days are allowed for incorporating the company. The name should not be undesirable i.e.; identical, resembling, restricted or prohibited.
Meaning of Financial Management
• Managerial activities which deals with planning and controlling of firms and financial sources. • Financial management is an area of financial decision making, harmonising individual motives and enterprise goals.
COST ACCOUNTING – MEANING
Cost accounting is concerned with recording, classifying and summarizing costs for determination of costs of products or services, planning, controlling and reducing such costs and furnishing of information to management for decision making.
Salary includes remuneration received for personal services under a contract of employment. For income to be categorized as salary, there must be an employer-employee relationship. Salary is taxable on a due or receipt basis, whichever is earlier. Components of taxable salary include basic salary, bonuses, commissions, allowances, perquisites, and profits in lieu of salary. Certain allowances such as transport, house rent, and leave travel are partially or fully tax exempt. Perquisites include benefits provided by employers and are taxed as salary. Specified employees who are directors, substantial interest holders, or high salary earners face additional taxes on perquisites.
This document provides an overview of the legal provisions around the assessment of trusts under the Income Tax Act of 1961. It discusses what constitutes a charitable or religious purpose, the sections related to non-chargeability to tax (Section 11) and registration (Section 12). Section 11 allows trusts to apply their income towards charitable purposes without being taxed, as long as certain conditions are met. Section 12 requires trusts to register in order to receive the benefits under Section 11. Section 13 deals with the withdrawal of these benefits if certain prohibited activities are carried out. The document outlines the specific conditions that must be met regarding the application and accumulation of income, and prohibited activities that could lead to the withdrawal of tax benefits.
Socio-Legal Dimensions of Gender (LLB-507 & 509 )cpjcollege
This paper intends to sensitize the students about the changing
dimensions of gender and also familiarizes them with the subtle manifestations of inequality rooted in our society.
The objective of the paper is to apprise the students with the laws relating to marriage, dissolution, matrimonial remedies, adoption, contemporary trends in family institutions in India, in particular the Hindus and Muslims.
Alternative Dispute Resolution (ADR) [LLB -309] cpjcollege
Alternative Dispute Resolution has become the primary means by which cases are resolved now days, especially commercial, business disputes. It has emerged as the preferred method for resolving civil cases, with litigation as a last resort. Alternative Dispute Resolution provides an overview of the statutory, procedural, and case law underlining these processes and their interplay with litigation. A significant theme is the evolving role of
professional ethics for attorneys operating in non-adversarial settings. Clients and courts increasingly express a preference for attorneys who are skilled not only in litigation but in problem-solving, which costs the clients less in terms of time, money and relationship. The law of ADR also provides an introduction to negotiation and mediation theory.
Environmental Studies and Environmental Laws (: LLB -301)cpjcollege
The objective of this paper is to acquaint the students with the environmental issues and the measures taken for its protection along with the norms prevailing at international and national
level
The paper will focus on the civil procedures followed in instituting a suit. The students will be familiarised with certain important concepts and practical skill development activity will provide insights into the actual working of the court procedures.
The objective of this paper is to provide an understanding of basic concepts of Indian Constitution and various organs created by the Constitution and their functions.
The document discusses various topics related to corporate law including types of companies, forms of business organization, shares, debentures, and securities. It provides information on sole proprietorships, partnerships, corporations, limited liability companies (LLCs), and different types of companies such as private companies and public companies. The document also defines key terms like shares, share capital, debentures, debenture bonds, and classifications of company securities.
It is an indispensable complementary part of our legal system without the study of which no advocate is suitably equipped with the basic requisites required to go to the court.
This document provides an overview of key concepts in international relations discussed in a political science class, including:
- Democracy and its key principles such as majority rule, protection of minority rights, and consent of the governed.
- Federalism and its features such as division of powers between central and state/provincial governments.
- The parliamentary system in India and features such as a ceremonial head of state, executive drawn from the legislature, and collective responsibility of ministers.
- Concepts in international relations like power, sovereignty, and the elements and limitations of national power, including international law, morality, and world public opinion.
This paper focuses on various aspects of health care law including the constitutional perspective, obligations, and negligence of medical professionals and remedies available to
consumers of health care.
The object of this paper is to focus on land reforms in India, Constitutional provisions related to land reforms, Land Acquisition, Rehabilitation, and Resettlement Act,2013, Urban Real Estate Development Laws and the Provisions of the Rent Laws under the
Delhi Rent Control Act, 1958.
Business Environment and Ethical Practices (BBA LLB 213 )cpjcollege
The objective of the course is to familiarize students with the different aspects of business environment and ethical practices to be adopted by organizations in conducting their business.
The document provides information about human resource management (HRM) including definitions of HRM, its components, nature, scope, importance, evolution, policies, challenges, and trends. It also discusses the differences between personnel management and HRM as well as HRM and strategic HRM. Additionally, it covers topics related to human resource planning such as meaning, importance, job analysis, and future personnel needs. The document appears to be lecture notes on an introduction to HRM course provided by Ms. Pallavi Sharma.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
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.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
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.
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
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.
Reimagining Your Library Space: How to Increase the Vibes in Your Library No ...Diana Rendina
Librarians are leading the way in creating future-ready citizens – now we need to update our spaces to match. In this session, attendees will get inspiration for transforming their library spaces. You’ll learn how to survey students and patrons, create a focus group, and use design thinking to brainstorm ideas for your space. We’ll discuss budget friendly ways to change your space as well as how to find funding. No matter where you’re at, you’ll find ideas for reimagining your space in this session.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Income Tax
1. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: FIFTH Semester
Name of the Subject:
INCOME TAX
BASICS
UNIT 1
2. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
AGRICULTURAL INCOME
Sec.10(1) exempts Agricultural Income from Income-Tax. Bu virtue of Sec.2(1)a the
expression “Agricultural Income” means :
•Any Rent or Revenue derived from Land which is situated in India and is used for
agricultural purposes. [Sec. 2(1A)(a)]
•Any income derived from such land :
Use for Agricultural purposes ; or
Used for agricultural operations means- irrigating and harvesting , sowing, weeding,
digging, cutting etc. It involves employment of some human skill, labour and energy
to get some income from land
Condition-1 : Income derived from Land
Condition-2 : Land is used for Agricultural Purposes
Condition-3 : Land is situated in India
3. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Person:
Income-tax is charged in respect of the total income of the previous year of
every person. Hence, it is important to know the definition of the word
person. As per section 2(31),Person includes:
• an Individual
• a Hindu Undivided Family (HUF)
• a Company
• a Firm
• an Association of Persons or a Body of Individuals (BOI) whether
incorporated or not
• a Local Authority
• every Artificial, Juridical person, not falling within any of the above
categories
4. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Assessee:
As per Section 2(7) of the Act according to which assessee means a person by whom any
tax or any other sum of money (i.e. Interest, penalty etc.) Is payable under the Act and
includes:
A) Every person in respect of whom any proceeding under this Act has been taken for the
assessment of his income or assessment of fringe benefits or of the income of any other
person in respect of which he is assessable or to determine the loss sustained by him or by
such other person or to determine the amount of refund due to him or to such other
person.
B) Every person who is deemed to be an assessee under any provision of this Act.
C) Every person who is deemed to be an assessee in default under any provision of this
Act.
5. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Assessment Year:
As per Section 2(9) “Assessment year” means the period of twelve months commencing on
1st April every year and ending on 31st March of the next year. Income of previous year of
an assessee is taxed during the following assessment year at the rates prescribed by the
relevant Finance Act
. Previous Year:
As per Section Section 3Income earned in a year is taxable in the next year. The year in
which income is earned is known as previous year.
From the assessment year 1989-90 onwards, all assessees are required to follow financial
year (i.e. April 1 to March 31) as previous year. The uniform previous year has to be followed
for all sources of income
6. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
RESIDENTIAL STATUS
Income tax is charged on total income earned by an Assessee during the previous year,
but at the rate applicable to the assessment year. It shall be determined on the basis of
the residential status of the Assessee. Sec.6 of the act divides the Assessee into 3
categories’
*Resident
*Non resident
*Not ordinary resident
7. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
INCOME
“ Income includes “ :
•Profit and Gains : For instance, Profit generated by a businessman is taxable as “Income”.
•Dividend : For instance, “Dividend” declared/paid by a company to a shareholders is
taxable as “ income” in the hands of shareholders .
•Voluntary contribution received by a Trust : In the hands of a Trust, income includes voluntary
contributions received by it.
8. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Exempted Incomes
1. Agriculture Income [Section 10(1)]
2. Any sum received by a Co-parcener from Hindu Undivided Family (H.U.F.) [Section
10(2)]
3. Share of Income from the Firm [Section 10(2A)]
4. Interest paid to Non-Resident [Section 10(4)(i)]
5. Interest to Non-Resident on Non-Resident (External) Account [Section 10(4)(ii)]
6. Interest paid to a person of Indian Origin and who is Non-Resident [Section 10(4 B)]
7. Travel Concession to an Indian Citizen Employee [Section 10(5)]
8. Remuneration received by an individual who is not a citizen of India [Section 10(6)]
9. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
9. Tax paid by Government or Indian concern on Income of a Foreign Company [Section
10(6A), (6B), (6BB) and (6C)]
10. Perquisites and Allowances paid by Government to its Employees serving outside India
[Section 10(7)]
11. Employees of Foreign Countries working in India under Cooperative Technical Assistance
Programme [Section 10(8)]
12. Income of a Consultant [Section 10(8A)]
13. Income of Employees of Consultant [Section 10(8B)]
14. Income of any member of the family of individuals working in India under co-operative
technical assistance programmes [Section 10(9)]
15. Gratuity [Section 10(10)]
16. Commuted value of pension received [Section 10(I0A)]
17. Amount received as leave encashment on retirement [Section 10(10AA)]
18. Retrenchment compensation paid to workmen [Section 10(10B)]
10. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: FIFTH Semester
Name of the Subject:
INCOME TAX
INCOME FROM SALARY
UNIT 2
11. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
INCOME TAX ON SALARIES
1.The levy of income tax in India is at present governed by two acts.
a)The Income Tax Act,1961
b)The Finance Act passed each year by the
Parliament.
2.Income Tax is leviable annually for each Financial Year commencing on the 1st day of
April and ending on the 31st day March following.
3.Income tax on salaries is computed on annual basis and recovered as TDS on monthly
basis for the sake of our convenience.
12. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CONT..
4.For the purpose of computing IT on salaries the term ‘salary’ includes following
elements:
a)Pay as defined in FR 9(21),leave salary and
advance of pay.
b)Bonus
c) Dearness allowance
d)Compensatory allowance
e)House rent allowance-subject to exemption
f) Value of Rent Free quarters
g) Fees retainable by the employees.
h) Honorarium
13. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CONT..
i)Reimbursement of tuition fees.
j) Subsistence allowance
k) Interim relief
l) Overtime allowance
m) Government Contribution to the NPS.
5.Following items are not to be taken in to account for the purpose of computing IT on
salaries :
a)Sumptuary allowance and uniform allowance
b) Reimbursement of cost of medical
treatment subject to limits
14. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CONT..
c) Value of LTC
b) cash equivalent of leave salary received at the
time of retirement.
c) TA granted for tour on duty and for transfer
d) Composite hill compensatory allowance
e) Border area /remote area /tribal area
difficult area /disturbed area allowance.
f) Conveyance allowance
g) CEA and hostel subsidy subject to limits
h) Any allowance granted for encouraging the
academic, research and other professional
pursuit
i) Transport allowance up to Rs.1600/- for orthopedically
handicapped persons and Rs.800/- for others (pm)
j) Any payment from GPF
15. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CONT..
6. The salary income of a person is calculated on the total salary due to him / her as per
the guidelines provided above.
7. From the total income so arrived at(gross salary) the following deductions to the
extent permissible are to be allowed to get taxable salary
a) HRA exemption to the extent admissible
b) Accrued interest/interest paid on HBA ,
c) Donation to any recognized charitable trust/
fund such as Prime Minister’s National relief fund
d) Professional tax paid to local bodies.
e) For handicapped employees an amount of Rs.50000 or
Rs.1,00,000/- as the case may be
16. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CONT..
8. With this taxable salary if the person is having any other income from other sources
as informed by him the same is to be added
9. From the taxable salary, following elements
of various forms of savings are to be
deducted to the extent admissible.
a)Subscription to PF,LIC,PLI policies
b) Subscription to any authorized pension
fund
c) Subscription to New pension Scheme
d) Subscription to any medical insurance
10. The total amount of savings is limited to a
maximum of Rs.1,50,000/.
17. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
PERQUISITES
The value of any benefit or amenity granted or provided free of cost or at
concessional rate.
Gratuity
• Death Cum Retirement Gratuity received by the Central Govt./State Govt. /Local
Authorities.
• Covered by gratuity Act, 1972 & Any other gratuity, least of the following is
exempted.
1. Actual amount received.
2. 15 days salary for each year of completed service
3. Rs.10,00,000/-.
EL Encashment
• Central Govt / State Govt Employees – Exempt
• Other Employees - Exemption will be determined with reference to the leave to
their credit at the time of retirement on superannuation, or otherwise, subject to
a maximum of ten months’ leave. This exemption will be further limited to the
maximum amount of Rs. 3,00,000.
1. .
18. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
CONT..
11.Thus the amount of taxable income is to arrived as follows.
a)Total salary income -- ________
b)less total of exempted
items( such as HRA exemption) -- ________(-)
c ) Gross Taxable income -- _______
d) less savings(limited to maximum) _________(-)
e) Net taxable salary ---------- __________
19. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Deduction on House Rent allowance
House rent allowance granted to the employee is exempt u/s 10(13A) to the following
extent; Provided expenditure on rent is actually incurred, the amount of exemption
granted is the least of
•(1) HRA received
•(2) Rent paid Less 10% of salary
•(3) 40% of salary, (50% in case of Mumbai, Chennai, Kolkata & Delhi). Salary includes
bonus + Dearness allowance, where provided by terms of employment.
20. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC
or Other Insurer
This section provides deduction to an Individual for any amount paid or deposited in any
annuity plan of LIC or any other insurer for receiving pension from a fund referred to in
Section 10(23AAB).
In case the annuity is surrendered before the date of its maturity, the surrender value is
taxable in the year of receipt.
Deductions on Section 80C, 80CCC & 80CCD
Total Deduction under section 80C, 80CCC and 80CCD (1) together cannot exceed Rs
1,50,000 for the financial year (assessment year 2018-19). The limit for financial year 18-
19 is also Rs 1,50,000.
21. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
New Inclusion - 80 CCD(1B)
•A new section 80CCD(1B) has been introduced to provide for additional deduction for
amount contributed to NPS of up to Rs. 50,000.
•Therefore for financial year , Total Deduction under Section 80C, 80CCC, 80CCD(1) and 80
CCD(1B) cannot exceed Rs 2,00,000.
From assessment year 2018-19, employer's contribution under section 80CCD(2) towards
NPS is outside the monetary ceiling mentioned above.
Deduction from gross total income: Section 80 TTA
•Deduction from gross total income with respect to any Income by way of Interest on
Savings account
•Deduction from gross total income of an individual or HUF, up to a maximum of Rs.
10,000/-, in respect of interest on deposits in savings account with a bank, co-operative
society or post office. Section 80TTA deduction is not available on interest income from
fixed deposits.
22. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: FIFTH Semester
Name of the Subject:
INCOME TAX
FULL PROCESS OF TAX
UNIT 3
23. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
WHAT IS A TAX?
Let us begin by understanding the meaning of tax. Tax is a fee charged by a government on
a product, income or activity.
There are two types of taxes . Direct taxes and indirect taxes.
If tax is levied directly on the income or wealth of a person, then it is a direct tax e.g.
income-tax, wealth tax.
If tax is levied on the price of a good or service, then it is called an indirect tax e.g. excise
duty, custom duty, service tax and sales tax or value added tax. In the case of indirect
taxes, the person paying the tax passes on the incidence to another person.
24. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
WHY ARE TAXES LEVIED?
The reason for levy of taxes is that they constitute the basic source of revenue to the
government. Revenue so raised is utilised for meeting the expenses of government like
defence, provision of education, health-care, infrastructure facilities like roads, dams etc
25. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
OVERVIEW OF INCOME-TAX LAW IN INDIA
Income-tax is the most significant direct tax. In this material, we would be introducing the
students to the Income-tax law in India. The income-tax law in India consists of the
following components.
Income Tax Act
Annual Finance Acts
Income Tax Rules
Circulars/Notifications
Legal decisions of Courts
26. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Income-tax Act
The levy of income-tax in India is governed by the Income-tax Act, 1961. We shall
briefly refer to this as the Act.
This Act came into force on 1st April, 1962.
The Act contains 298 sections and XIV schedules.
These undergo change every year with additions and deletions brought about by the
Finance Act passed by Parliament.
In pursuance of the power given by the Income-tax Act, rules have been framed to
facilitate proper administration of the Income-tax Act.
27. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Income-tax Rules
The administration of direct taxes is looked after by the Central Board of Direct
Taxes (CBDT).
The CBDT is empowered to make rules for carrying out the purposes of the Act.
For the proper administration of the Income-tax Act, the CBDT frames rules from
time to time. These rules are collectively called Income-tax Rules, 1962. It is
important to keep in mind that along with the Income-tax Act, these rules should
also be studied.
28. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Circulars and Notifications
Circulars are issued by the CBDT from time to time to deal with certain specific problems
and to clarify doubts regarding the scope and meaning of the provisions.
These circulars are issued for the guidance of the officers and/or assessees.
The department is bound by the circulars. While such circulars are not binding the
assessees they can take advantage of beneficial circulars.
29. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Case Laws
The study of case laws is an important and unavoidable part of the study of income-tax law.
It is not possible for Parliament to conceive and provide for all possible issues that may
arise in the implementation of any Act. Hence the judiciary will hear the disputes between
the assessees and the department and give decisions on various issues.
The Supreme Court is the Apex Court of the country and the law laid down by the Supreme
Court is the law of the land.
The decisions given by various High Courts will apply in the respective states in which such
High Courts have jurisdiction.
30. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
LEVY OF INCOME-TAX
Income-tax is a tax levied on the total income of the previous year of every person. A
person includes
An individual,
Hindu Undivided Family (HUF),
Association of Persons (AOP),
Body of Individuals (BOI),
A firm,
A company etc.
31. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
TOTAL INCOME AND TAX PAYABLE
Income-tax is levied on an assessee’s total income. Such total income has to be computed
as per the provisions contained in the Income-tax Act, 1961. Let us go step by step to
understand the procedure of computation of total income for the purpose of levy of
income-tax.
Step 1 Determination of residential status
Step 2 Classification of income under different heads
Step 3 Exclusion of income not chargeable to tax
Step 4 Computation of income under each head
Step 5 Clubbing of income of spouse, minor child etc.
Step 6 Set-off or carry forward and set-off of losses
Step 7 Computation of Gross Total Income.
Step 8 Deductions from Gross Total Income
Step 9 Total income
Step 10 Application of the rates of tax on the total income
Step 11 Surcharge
Step 12 Education cess and secondary and higher education cess
Step 13 Advance tax and tax deducted at source
32. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 1 . Determination of residential status
The residential status of a person has to be determined to ascertain which income is to be
included in computing the total income. The residential statuses as per the Income-tax Act are
shown below .
Residential status under Income Tax Act !961
Resident Non-resident
Resident And
ordinary
resident
Resident but not-
ordinary resident
• In the case of an individual, the duration for which he is present in India determines his
residential status. Based on the time spent by him, he may be (a) resident and
ordinarily resident, (b) resident but not ordinarily resident, or (c) non-resident.
• The residential status of a person determines the taxability of the income. For e.g.,
income earned outside India will not be taxable in the hands of a non-resident but will
be taxable in case of a resident and ordinarily resident.
33. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 2 . Classification of income under different heads
• These heads of income exhaust all possible types of income that can accrue to or be
received by the tax payer.
• Salary, pension earned is taxable under the head ‘Salaries’.
• Rental income is taxable under the head ‘Income from house property’.
• Income derived from carrying on any business or profession is taxable under the head
‘Profits and gains from business or profession’.
• Profit from sale of a capital asset (like land) is taxable under the head ‘Capital Gains’.
• The fifth head of income is the residuary head under which income taxable under the
Act, but not falling under the first four heads, will be taxed.
• The tax payer has to classify the income earned under the relevant head of incom
34. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
HEADS OF INCOME
A.—SALARIES.
B.— INCOME FROM HOUSE PROPERTY
C.— PROFITS AND GAINS OF BUSINESS OR PROFESSION.
D.—. CAPITAL GAINS
E.— INCOME FROM OTHER SOURCES
35. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 3 - Exclusion of income not chargeable to tax
There are certain income which are wholly exempt from income-tax e.g. Agricultural income.
These income have to be excluded and will not form part of Gross Total Income.
Also, some incomes are partially exempt from income-tax e.g. House Rent Allowance,
Education Allowance. These incomes are excluded only to the extent of the limits specified in
the Act.
The balance income over and above the prescribed exemption limits would enter
computation of total income and have to be classified under the relevant head of income.
36. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 4 - Computation of income under each head
Income is to be computed in accordance with the provisions governing a particular head
of income.
Under each head of income, there is a charging section which defines the scope of income
chargeable under that head.
There are deductions and allowances prescribed under each head of income. For example,
while calculating income from house property, municipal taxes and interest on loan are
allowed as deduction. Similarly, deductions and allowances are prescribed under other
heads of income. These deductions etc. have to be considered before arriving at the net
income chargeable under each h
37. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 5 . Clubbing of income of spouse, minor child etc
In case of individuals, income-tax is levied on a slab system on the total income. The tax
system is progressive i.e. as the income increases, the applicable rate of tax increases.
Some taxpayers in the higher income bracket have a tendency to divert some portion of
their income to their spouse, minor child etc. to minimize their tax burden. In order to
prevent such tax avoidance, clubbing provisions have been incorporated in the Act,
under which income arising to certain persons (like spouse, minor child etc.) have to be
included in the income of the person who has diverted his income for the purpose of
computing tax liability.
38. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 6 . Set-off or carry forward and set-off of losses
An assessee may have different sources of income under the same head of income. He
might have profit from one source and loss from the other. For instance, an assessee may
have profit from his textile business and loss from his printing business. This loss can be
set-off against the profits of textile business to arrive at the net income chargeable under the
head .Profits and gains of business or profession..
Similarly, an assessee can have loss under one head of income, say, Income from house
property and profits under another head of income, say, Profits and gains of business or
profession. There are provisions in the Income-tax Act for allowing inter-head adjustment
in certain cases.
Further, losses which cannot be set-off in the current year due to inadequacy of eligible
profits can be carried forward for set-off in the subsequent years as per the provisions
contained in the Act.
39. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 7 . Computation of Gross Total Income.
The final figures of income or loss under each head of income, after allowing the
deductions, allowances and other adjustments, are then aggregated, after giving effect
to the provisions for clubbing of income and set-off and carry forward of losses, to arrive
at the gross total income
40. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 8 . Deductions from Gross Total Income
Deduction in respect of certain payments Deduction in respect of certain
incomes
Other deductions
1. Life insurance premium paid
2. Contribution to provident fund/
Pension fund
3. Medical insurance premium paid
4. Payment of interest of loan taken for
higher education
5. Rent paid
6. Certain donations
7. Contribution to political parties
1. Profit and gains from undertaking
engaged in infrastructural
development
2. Profit and gains from undertaking
engaged in development of
SEZ
3. Certain income of co-operative
societies
4. Royalty income etc of authors
5. Royalty on patents
Deduction in case of
person with disability
41. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 9 . Total income
The income arrived at, after claiming the above deductions from the Gross Total Income is
known as the Total Income.
Step 10 . Application of the rates of tax on the total income
The rates of tax for the different classes of assesses are prescribed by the Annual Finance
Act. The tax rates have to be applied on the total income to arrive at the income-tax
liability Step 11 . Surcharge
Surcharge is an additional tax payable over and above the income-tax. Surcharge is levied
as a percentage of income-tax .
Step 12 . Education cess and secondary and higher education
Cess on income-tax
The income-tax, as increased by the surcharge, is to be further increased by an additional
surcharge called education cess@2%. The Education cess on income-tax is for the purpose
of providing universalised quality basic education. This is payable by all assesses who are
liable to pay income-tax irrespective of their level of total income.
Further, .secondary and higher education cess on income-tax. @1% of income-tax plus
surcharge, if applicable, is leviable from A.Y.2008-09 to fulfill the commitment of the
Government to provide and finance secondary and higher education.
42. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Step 13 - Advance tax and tax deducted at source
Although the tax liability of an assessee is determined only at the end of the year, tax is
required to be paid in advance in certain instalments on the basis of estimated income.
In certain cases, tax is required to be deducted at source from the income by the payer
at the rates prescribed in the Act. Such deduction should be made either at the time of
accrual or at the time of payment, as prescribed by the Act.
For example, in the case of salary income, the obligation of the employer to deduct tax
at source arises only at the time of payment of salary to the employees. Such tax
deducted at source has to be remitted to the credit of the Central Government through
any branch of the RBI, SBI or any authorized bank. If any tax is still due on the basis of
return of income, after adjusting advance tax and tax deducted at source, the assessee
has to pay such tax (called self-assessment tax) at the time of filing of the return.
43. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
RETURN OF INCOME
The Income-tax Act, contains provisions for filing of return of income.
Return of income is the format in which the assessee furnishes information as to his total
income and tax payable. The format for filing of returns by different assessees is notified
by the CBDT.
The particulars of income earned under different heads, gross total income, deductions
from gross total income, total income and tax payable by the assessee are required to be
furnished in a return of income.
In short, a return of income is the declaration of income by the assessee in the prescribed
format.
The Act has prescribed due dates for filing return of income in case of different assessees.
All companies and firms have to mandatorily file their return of income before the due
date.
Other persons have to file a return of income if their total income exceeds the basic
exemption limit.
44. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Semester: FIFTH Semester
Name of the Subject:
INCOME TAX
DEDUCTION OF TAX AT SOURCE
UNIT 4
45. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Introduction
To avoid cases of tax evasion, the Income-Tax Act has made provisions to collect tax at
source on accrual of income. Cases included in the scheme are, generally, those where
income can be computed at the time of accrual of income. Under this scheme, persons
responsible for making payment of income covered by the scheme are responsible to
deduct tax at source and deposit the same to the Government’s treasury within the
stipulated time. The recipient of income—though he gets only the net amount (after
deduction of tax at source)—is liable to tax on the gross amount and the amount
deducted at source is adjusted against his final tax liability. The details of the scheme of
tax deduction and collection at source are briefly discussed in this presentation. To
conclude one can say that the scheme of TDS is only payment of tax on adhoc basis by
the payer of income on behalf of recipient.
46. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Steps for TDS
47. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
TAN
Every deductor is required to obtain a unique identification number called TAN (Tax
Deduction Account Number) which is a ten digit alpha numeric number. This number
has to be quoted by the deductor in every correspondence related to TDS
48. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Tax Deduction & Collection Account Number
Every person deducting tax or collecting tax should obtain a tax deduction &
collection number
Such person should quote such number in every challan for payment u/s 200 or
206C(3), in every certificate furnished u/s 203 or u/s 206C(5)
In all the TDS returns delivered
In all other documents pertaining to such transaction as may be prescribed in
the interest of revenue
49. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Payment covered under the scheme of TDS
Salary (Sec.192)
Interest on Securities (Sec.193)
Dividends (Sec.194)
Interest other than Interest on Securities (Sec.194A)
Winnings from Lotteries or crossword puzzles (Sec.194B)
Winnings from Horse Races (Sec.194BB)
Payments to Contractors and Sub-contractors (Sec.194C)
Insurance Commission (Sec.194D)
Payment to Non-resident sportsmen or sports association (Sec.194E)
Payment in respect of NSC (Sec. 194EE)
50. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Salary (Sec.192)
Who is the payer Employer
Who is the recipient Employee
Payment Covered Taxable Salary of the employee
At what time TDS to be deducted At the time of payment
Maximum amount which can be paid without
tax deduction
The amount of exemption limit
(i.e.,Rs.160000/190000/240000 for A.Y.
2011-12)
Rate at which tax to be deducted. As per Calculation
When the provisions are not applicable --
Is it possible to get the payment without tax
deduction or with lower tax deduction
The employee can make application in Form
No.13 to the Assessing Officer to get the
certificate of lower tax deduction or no tax
deduction.
51. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Interest on Securities (Sec. 193)
Who is the payer Payer of interest on securities
Who is the recipient A resident person holding securities
Payment covered Interest on securities
At what time TDS to be deducted. At the time of payment or at the time of
credit, whichever is earlier
Maximum amount which can be paid without
tax deduction
Rs. 2500
Rate at which TDS to be deducted 10%
When the provisions are not applicable Interest on Central/State Government
securities
Is it possible to get the payment without tax
deduction or with lower tax deduction
The recipient can make application to the
Assessing Officer in Form No. 13 or
declaration to the payer in Form 15G or 15H
as applicable
52. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Dividends (Sec. 194)
Who is the payer Domestic company
Who is the recipient Resident shareholder
Payment Covered Deemed dividend under section 2(22)(e)
At what time TDS to be deducted At the time of payment
Maximum amount which can be paid
without tax deduction
Rs.2500
Rate at which TDS to be deducted 20%
When the provisions are not applicable Dividend covered by section 115-O
Is it possible to get the payment without
tax deduction or with lower tax deduction
The recipient can make application to the
Assessing Officer in Form No. 13 or
declaration to the payer in Form 15G or
15H as applicable
53. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
INTEREST OTHER THAN INTEREST ON
SECURITIES (Sec 194A)
Who is the payer Any person paying interest other than interest
on securities
Who is the recipient A Resident person
Payment covered Interest other than interest on securities
At what time TDS to be deducted. At the time of payment or at the time of credit,
whichever is earlier
Maximum amount which can be paid without
tax deduction
If payer is banking company, co-operative
engaged in banking business or Rs 10000/- if
Payer is any other person Rs 5000/-
Rate at which TDS to be deducted 10% if the recipient is resident non-corporate
assessee and 20% if the recipient is resident
corporate assessee
When the provisions are not applicable If the payee are Insurance companies or
financial institutions including co-operative
societies etc.
Is it possible to get the payment without tax
deduction or with lower tax deduction
Declaration to the payer in Form 15G or 15H
as applicable
54. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Winnings from Lotteries or Crossword
Puzzles
(Sec. 194B)
Who is the payer Any person paying winnings from
lotteries/crossword puzzles/card games/other
games
Who is the recipient Any Person
Payment covered Winnings from lotteries/crossword puzzles/card
games/other games
At what time TDS to be deducted. At the time of Payment
Maximum amount which can be paid without tax
deduction
If the amount payment is Rs. 10000/- or less
than Rs. 10000/-
Rate at which TDS to be deducted 30%
When the provisions are not applicable --
Is it possible to get the payment without tax
deduction or with lower tax deduction
Not Possible
55. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Insurance Commission (Sec.194D)
Who is the payer Any person paying insurance commission.
Who is the recipient A resident person
Payment covered Insurance Commission
At what time TDS to be deducted. At the time of payment or at the time of credit
whichever is earlier
Maximum amount which can be paid without
tax deduction
If the amount of payment is Rs. 20000/- or
less than Rs. 20000/-
Rate at which TDS to be deducted 10% if the recipient is resident non-corporate
assessee and
20% if the recipient is resident corporate
assessee
When the provisions are not applicable --
Is it possible to get the payment without tax
deduction or with lower tax deduction
The recipient can make an application in
Form No. 13 to the Assessing Officer to get
the certificate of lower tax deduction or no
tax deduction.
56. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Payments in respect of NSC (Sec.194EE)
Who is the payer Post Office
Who is the recipient Any Person
Payment covered Payment (Principal+Interest) out of National
Saving Scheme, 1987.
At what time TDS to be deducted. At the time of payment
Maximum amount which can be paid
without tax deduction
If the amount of payment is Rs.2500 or less
than Rs.2500
Rate at which TDS to be deducted 20%
When the provisions are not applicable The payment is made to legal heirs of the
deceased depositor
57. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Provisions for Filing Returns
Different Payments In case the person deducting tax is a
company or a Government department
or a person whose books are required
to be audited u/s. 44AB in the
immediately preceding year or in whose
case number of deductees in any of the
quarterly statements in the immediately
year is 20 or more
In case the person
deducting tax is
any other person
Time-limit for submission
of return by the person
deducting tax
Salary Form No. 24Q in Electronic format and
Form No. 27A
Form No. 24Q Within 15 days from the
end of each quarter (31st
May in case of last
quarter)
Payment (other than
salary) to a resident
Form No. 26Q in Electronic format and
Form No. 27A
Form No. 26Q Within 15 days from the
end of each quarter (31st
May in case of last
quarter)
Payment (other than
salary) to a non-
resident
Form No. 27Q in Electronic format and
Form No. 27A (quarterly)
Form No. 27Q
(quarterly)
Within 15 days from the
end of each quarter (31st
May in case of last
quarter)
58. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Issue TDS Certificates Sec. 203
Sr. No. Form no Periodicity Cut off Date
1 16 For Salary Annual 31st May of following financial year
2 16A Other
than salary
Quarterly Within 15 days from due date of furnishing
the TDS statement under rule 31A
59. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Dates for Payment of TDS
Deductor For MARCH For April to February
Government On or before 7th of next
month for salary
On the same day for other than salary & on
or before 7th of next month for salary
Other than
Government
On or before 30th April On or before 7th of next month
Special Cases 30th April Quarterly payment on or before 7th of the
month succeeding quarter
60. Chanderprabhu Jain College of Higher Studies & School of Law
Plot No. OCF, Sector A-8, Narela, New Delhi – 110040
(Affiliated to Guru Gobind Singh Indraprastha University and Approved by Govt of NCT of Delhi & Bar Council of India)
Furnishing of quarterly returns for payment of interest to residents
without Deducting Tax (Sec. 206A)
Banking company, Cooperative societies, & Public Companies shall furnish
quarterly return to department in respect of payments of Interest (other than
Interest on Securities) in any computer readable media.