This document provides an overview of key concepts in Indian income tax law, including: - The main sources of tax law in India such as the Income Tax Act of 1961. - Definitions of terms like assessee, person, previous year, gross total income. - The different types of assessees such as individuals, HUFs, companies, etc. - What constitutes agricultural income and exclusions from total income calculations. - The different heads of income and process for calculating total income. - Examples of income that would fall under different sources like salary, business, capital gains.

1. UNIT 1

2.  Tax Act 1961
 Income Tax rules 1962
 Annual Finance Act
 Case Laws – Supreme & High courts
 Circulars and Notification.

3.  Persons sec 2(31)
 Assessee sec 2(7)
 Assessment Year sec 2(9)
 Previous Year sec 3
 Income Sec 2(24)
 Gross Total Income sec 14
 Total Income sec 5

4.  Individual
 HUF
 A Company
 Firm
 AOP or BOI
 Local authority
 Artificial judicial person

5.  Normal Assessee
 Assessee in default
 Deemed Assessee
 Representative Assessee

7.  1st April to 31st March
 1st January to 31st December

8.  Sec 172 income of non resident from shipping business
 Sec 174 income of persons leaving in India either permanently or for a long period
of time
 Sec 174(1) income of bodies formed for short duration
 Sec 175 income of a person trying to transfer his/her assets to avoid the payment
of tax
 Sec 176 income of discontinued business

9.  Profits and gains of business
 Dividends
 Voluntary contributions received by a trust or an institutions
 Perquisites or profits in lieu of salary
 Any special allowances, allowances or value of any benefits or perquisite
 Any interest, salary, bonus, commission earned.
 Any sum paid by the company in interest of the Assessee
 Any profits on sale of license granted under import control order of 1955
 Any cash assistance received by GOI
 Any capital gains
 Any profits and gains of any business of insurance carried on by a mutual insurance
company or cooperative society
 Any winnings from lotteries, crossword puzzles, race including horse races, card
games, gambling betting etc

10.  Any sum received by the assessee from his employees as contributions to any
provident fund or any fund set up under the provisions of the Employees State
Insurance Act
 Any sum received under a keyman insurance policy including the sum allocated
by way of bonus on such policy
 Any consideration received for issue of shares as exceeds the fair market value of
the shares
 Any assistance in the form of a subsidy or grant or waiver (by whatever name
called) by central or state government or any authority in cash or kind
 Any sum chargeable to income tax under clauses (ii) and (iii) of sec 28 or sec41 or
sec 59

11.  Income from salaries
 Income from house property
 Profits and gains of business or profession
 Income from capital gains
 Income from other sources
Before deduction u/s 80C and 80U

12.  Total income is GTI after making deductions under sec 80C and 80U

13.  Any rent from land which is used for agricultural purpose
 Any income derived from such land by agricultural operations
 Income attributable to a farm house subject to the condition that building is
situated on or in the immediate vicinity of the land and used as a dwelling house,
store house etc

14.  There must be a land and its must be situated in India
 The land has to be used for agricultural operations
 Means that efforts have been induced for the crop to sprout out of the land
 Rent received from the land, there must be agricultural activities on the land
 Income from house, should be situated on the land itself and is used as a store
house/dwelling house

15.  Income from sale of replanted trees
 Rent received for agricultural land
 Income from growing flowers and creepers
 Share of profit of a partner from a firm engaged in agricultural operations
 Interest on capital received by a partner from a firm engaged in agricultural
operations
 Income derived from sale of seeds

16.  Income from poultry farming
 Income from bee hiving
 Income from sale of spontaneously grown trees
 Income from dairy farming
 Purchase of standing crop
 Dividend paid by a company out of its agricultural income
 Income of salt produced by flooding the land with sea water
 Royalty income from mines
 Income from butter and cheese making
 Receipts from tv serial shooting in farm house

17.  CIA component

18.  The term income includes the following incomes a) legal, b) illegal, c) both
 Which of the following income is not included in the term income under IT Act
1961-profits and gains, profit in lieu of salary, dividend, reimbursement of
travelling expenses
 IT in India is charged at the rate prescribed by- finance Act, IT Act, central board
of direct taxes, the ministry of finance
 Which of the following is included in the agricultural income- income from bee
hiving, dairy farming, royalty income from mines, income earned from carrying
nursery operations

19.  A sole trader keeping his accounts on FY basis.
 Sri Murthy start up a new business on 03/03/2020
 Mrs. Lakshmi joins an Indian company on 23/01/2020
 Smt. Mookambika bought a house on 01/08/2019 and let out at Rs6000 pm
 Smt. Parvati is registered doctor and keeps her income and expenditure accounts
on calendar year

20.  A year in which income is taxable is known as __________ and year in which
income is earned is known as __________
 Above 80 aged persons are called as senior citizen, super senior citizen, old man,
retired person?

21.  Every assessee is a person and – a) every person is also an assessee b) every
person need not be an assessee c) an individual is always an assessee d) a HUF is
always an assessee
 Who is a tax payer? Assessee, businessman, trust , farmer?