Description
CENGAGE INDIA Principles Of Income Tax Law & Practice 2Nd Edition 2021 by Naveen Mittal
This book fully covers the syllabus of B.Com. as per CBCS. It adopts a simplified approach to building concepts without compromising on rigour of the subject.1. BASIC CONCEPTS1.1 Overview of income-tax laws in India1.2 Understanding of basic terms1.3 Charge of income-tax [Sec. 4]1.4 Computation of total income of an assessee1.5 Computation of tax payable by/refundable to an assessee1.6 Tax rates applicable on the total income for the assessment year 2020-211.7 Rebate of income-tax in case of certain individuals [Sec. 87A]1.8 Surcharge1.9 Health and education cess1.10 Relief from surcharge1.11 Rounded off of total income [Sec. 288A]1.12 Rounded off of income-tax payable or refundable [Sec. 288B]1.13 Method of accounting [Sec. 145]1.14 Permanent account number [Sec. 139A]2. RESIDENTIAL STATUS2.1 Residence in India [Sec. 6]2.2 S cope of total income [Sec. 5]2.3 Income deemed to be received [Sec. 7]2.4 Dividend income to be treated as income of the previous year [Sec. 8]2.5 Income deemed to accrue or arise in India [Sec. 9]3. INCOMES THAT DO NOT FORM PART OF TOTAL INCOME3.1 Agricultural income [Sec. 10(1)]3.2 S um received by member from his HUF [Sec. 10(2)]3.3 S hare of profit earned by a partner from the partnership firm [Sec. 10(2A)]3.4 Remuneration of a foreign citizen [Sec. 10(6)]3.5 Remuneration earned by an individual from the Government of a foreign state [Sec. 10(8)]3.6 Payment made under the Bhopal Gas Leak Disaster Act [Sec. 10(10BB)]3.7 Payment received from the Government by way of compensation for any disaster [Sec. 310(10BC)]3.8 S um received under a life insurance policy [Sec. 10(10D)]3.9 Payment from Sukanya Samriddhi Account [Sec. 10(11A)]3.10 Education scholarship [Sec. 10(16)]3.11 Any payment of any approved award [Sec. 10(17A)]3.12 Income by way of gallantry awards [Sec. 10(18)]3.13 Family pension received by family members of the member of armed forces after his death [Sec. 10(19)]3.14 Income of a local authority [Sec. 10(20)]3.15 Income of a research association [Sec. 10(21)]3.16 Income of a news agency [Sec. 10(17)]3.17 Income of associations formed to regulate specified professions [Sec. 10(23A)]3.18 Income received from fund established by armed forces [Sec. 10(23AA)]3.19 Income of a fund set up by the life insurance companies [Sec. 10(23AAB)]3.20 Income of an institution established for the development of khadi or village industries [Sec. 10(23B)]3.21 Income of any authority which is administering religious institutions [Sec. 10(23BBA)]3.22 Income of Insurance Regulatory and Development Authority [Sec. 10(23BBE)]3.23 Income of North-Eastern Development Finance Corporation Limited [Sec. 10(23BBF)]3.24 Income of the Central Electricity Regulatory Commission [Sec. 10(23BBG)]3.25 Income of the Prasar Bharti (Broadcasting Corporation of India) [Sec. 10(23BBH)]3.26 Income received from the specified funds, educational institutions, and hospitals [Sec. 10(23C)]3.27 Rental income and income from other sources of a trade union [Sec. 10(24)]3.28 Income received from funds [Sec. 10(25)]3.29 Income earned by a member of a scheduled tribe in specified areas [Sec. 10(26)]3.30 Income earned by a Sikkimese individual [Sec. 10(26AA)]3.31 Income of an institution formed to promote the interests of the members of scheduled castes or scheduled tribes or backward classes [Sec. 10(26B)]3.32 Income of a corporation formed to promote the interests of the members of a minority community [Sec. 10(26BB)]3.33 Income of a corporation formed for the welfare and economic upliftment of ex-serviceman [Sec. 10(26BBB)]3.34 Dividend income from a domestic company [Sec. 10(34)]3.35 Income of a mutual fund [Sec. 10(35)]3.36 Any specified income from any international sporting event held in India earned by notified persons [Sec. 10(39)]3.37 Amount received under reverse mortgage [Sec. 10(43)]3.38 Income of any notified authority established for the benefit of general public [Sec. 10(46)]3.39 Miscellaneous point3.40 Expenditure incurred in relation to income not includible in total income [Sec. 14A]4. INCOME FROM SALARIES4.1 Salaries [Sec. 15]4.2 Meaning of salary [Sec. 17(1)]4.3 Meaning of ‘Profits in lieu of salary’ [Sec. 17(3)]4.4 Retirement benefits4.5 Allowances4.6 Perquisites4.7 Deductions from salaries [Sec. 16]4.8 Relief when salary, etc., is paid in arrears or in advance [Sec. 89]5. INCOME FROM HOUSE PROPERTY5.1 Income from house property [Sec. 22]5.2 Composite rent5.3 Computation of annual value of a let out or deemed to be Let out property [Sec. 23(1)]5.4 Cases in which the annual value of the house is Nil [Sec. 23(2)]5.5 Computation of annual value when the assessee has more than two houses on which the annual value is Nil [Sec. 23(4)]5.6 Computation of annual value in case the property is held as stock-in-trade [Sec. 23(5)]5.7 Deductions from income from house property [Sec. 24]5.8 Special provision for arrears of rent and unrealized rent received subsequently [Sec. 25A]5.9 Property owned by co-owners [Sec. 26]5.10 Deemed ownership [Sec. 27]5.11 Rental income from properties exempted from tax6. PROFITS AND GAINS OF BUSINESS OR PROFESSION6.1 Profits and gains of business or profession [Sec. 28]6.2 Computation of income from profits and gains of business or profession [Sec. 29]6.3 Rent, rates, taxes, repairs and insurance for buildings [Sec. 30]6.4 Repairs and Insurance of machinery, plant and furniture [Sec. 31]6.5 Depreciation [Sec. 32]6.6 Expenditure on scientific research [Sec. 35]6.7 Deduction in respect of expenditure on specified business [Sec. 35AD]6.8 Amortisation of certain preliminary expenses [Sec. 35D]6.9 Other deductions [Sec. 36]6.10 General deductions [Sec. 37(1)]6.11 Building, machinery, plant or furniture not exclusively so used [Sec. 38]6.12 Amounts not deductible [Sec. 40(a)]6.13 Expenses or payments not deductible in certain circumstances [Sec. 40A]6.14 Profits chargeable to tax [Sec. 41]6.15 Certain deductions to be allowed only on actual payment [Sec. 43B]6.16 Maintenance of accounts by certain persons carrying on profession or business [Sec. 44AA]6.17 Audit of accounts of certain persons carrying on business or profession [Sec. 44AB]6.18 Special provision for computing profits and gains of business on presumptive basis [Sec. 44AD]6.19 Special provision for computing profits and gains of profession on presumptive basis [Sec. 44ADA]6.20 Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages [Sec. 44AE]6.21 Method of accounting [Sec. 145]6.22 Relevant court ruling7. CAPITAL GAINS7.1 Capital gains on transfer of a capital asset [Sec. 45(1)]7.2 Capital gains on transfer of land or building or both under a specified agreement [Sec. 45(5a)]7.3 Meaning of capital asset [Sec. 2(14)]7.4 Meaning of transfer [Sec. 2(47)]7.5 Transactions not treated as transfer [Sec. 47]7.6 Types of capital assets for the purpose of computing capital gains or capital losses7.7 How to determine the period of holding of the capital asset by the assessee7.8 Types of capital gains or capital losses7.9 Mode of computation [Sec. 48]7.10 How to determine the cost of the capital asset with reference to certain modes of acquisition [Sec. 49]7.11 Meaning of cost of acquisition [Sec. 55(2)]7.12 Meaning of cost of any improvement [Sec. 55(1)(b)]7.13 Special provision for computation of capital gains in case of depreciable assets [Sec. 50]7.14 Special provision to determine full value of consideration in case of transfer of land or building or both [Sec. 50c]7.15 Special provision for full value of consideration for transfer of share, other than quoted share [sec. 50ca]7.16 Fair market value deemed to be full value of consideration in certain cases [Sec. 50d]7.17 Advance money received and retained [Sec. 51]7.18 Exemptions from income under the head capital gains7.19 Tax on long-term capital gains other than the long-term capital gains covered under section 112a [Sec. 112]7.20 Tax on long-term capital gains in special cases [Sec. 112a]7.21 Tax on short-term capital gains in special cases [Sec. 111a]7.22 Comparison of sections 112, 112A and 111A8. INCOME FROM OTHER SOURCES8.1 Chargeability under the head income from other sources [Sec. 56(1)]8.2 Incomes always taxed under the head income from other sources [Sec. 56(2)]8.3 Dividend8.4 Winnings from lotteries, etc.8.5 Interest income8.6 Gift8.7 Deductions [Sec. 57]8.8 Amounts not deductible [Sec. 58]8.9 Profits chargeable to tax [Sec. 59]8.10 Interest income not included in total income [Sec. 10(15)]8.11 Method of accounting [Sec. 145]8.12 Miscellaneous9. CLUBBING OF INCOME 9.19.1 Transfer of income where there is no transfer of assets [Sec. 60]9.2 Revocable transfer of assets [Sec. 61]9.3 Transfer irrevocable for a specified period [Sec. 62]9.4 Definition of ‘transfer’ and ‘revocable transfer’ [Sec. 63]9.5 Income of individual to include income of spouse, minor child, etc. [Sec. 64]9.6 Conversion of self-acquired property into a joint property [Sec. 64(2)]9.7 Liability of person in respect of income included in the income of another person [Sec. 65]9.8 Miscellaneous points 10. SE T OFF OR CARRY10. FORWARD AND SET OFF OF LOSSES10.1 Set off or carry forward and set off of losses10.2 Set off of loss from one source against income from another source under the same head of income [Sec. 70]10.3 Set off of loss from one head against income from another head [Sec. 71]10.4 Carry forward and set off of loss from house property [Sec. 71B]10.5 Carry forward and set off of business losses [Sec. 72]10.6 Losses in speculation business [Sec. 73]10.7 Carry forward and set off of losses by specified business [Sec. 73A]10.8 Losses under the head capital gains [Sec. 74]10.9 Losses from certain specified sources falling under the head income from other sources [Sec. 74A]10.10 Miscellaneous points order of set off of business losses and unabsorbed depreciation11. DEDUCTIONS FROM GROSS TOTAL INCOME11.1 Deductions to be made in computing total income [Sec. 80A]11.2 Deduction not to be allowed unless return furnished [Sec. 80AC]11.3 Definitions [Sec. 80B]11.4 Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. [Sec. 80C]11.5 Deduction in respect of contribution to certain pension funds [Sec. 80CCC]11.6 Deduction in respect of contribution to pension scheme of central government [Sec. 80CCD]11.7 Limit on deductions under sections 80C, 80CCC and 80CCD [Sec. 80CCE]11.8 Deduction in respect of health insurance premia [Sec. 80D]11.9 Deduction in respect of maintenance including medical treatment of a dependent who is a person with disability [Sec. 80DD]11.10 Deduction in respect of medical treatment, etc. [Sec. 80DDB]11.11 Deduction in respect of interest on loan taken for higher education [Sec. 80E]11.12 Deduction in respect of interest on loan taken for acquisition of certain house property [Sec. 80EEA]11.13 Deduction in respect of purchase of electric vehicle [Sec. 80EEB]11.14 Deduction in respect of donations to certain funds, charitable institutions, etc. [Sec. 80G]11.15 Deductions in respect of rents paid [Sec. 80GG]11.16 Deduction in respect of certain donations for scientific research or rural development [Sec. 80GGA]11.17 Deduction in respect of contributions given by companies to political parties [Sec. 80GGB]11.18 Deduction in respect of contributions given by any person to political parties [Sec. 80GGC]11.19 Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste [Sec. 80JJA]11.20 Deduction in respect of royalty income, etc., of authors of certain books other than text-books [Sec. 80QQB]11.21 Deduction in respect of interest on deposits in savings account [Sec. 80TTA]11.22 Deduction in respect of interest on deposits in case of senior citizens [Sec. 80TTB]11.23 Deduction in case of a person with disability [Sec. 80U]11.24 Miscellaneous points12. AGRICULTURAL INCOME12.1 Definition of agricultural income [Sec. 2(1A)]12.2 Exemption from agricultural income [Sec. 10(1)]12.3 Taxability of agricultural income with non-agricultural income12.4 Partially agricultural income and partially non-agricultural income13. ALTERNATE MINIMUM TAX13.1 Special provisions for payment of tax by certain persons other than a company [Sec. 115JC]13.2 Tax credit for AMT [Sec. 115JD]13.3 Application of AMT to certain persons [Sec. 115JEE]14. ASSESSMENT OF INDIVIDUALS15. ASSESSMENT OF FIRMS15.1 Definitions15.2 Basic points15.3 Assessment as a firm [Sec. 184]15.4 Interest to partners not deductible in the hands of a firm [Sec. 40(b)]15.5 Remuneration to partners not deductible in the hands of a firm [Sec. 40(b)]15.6 Assessment when section 184 not complied with [Sec. 185]16. RETURN OF INCOME16.1 Return of income [Sec. 139]16.2 E -filing of Income Tax Return16.3 Preparation of return of income electronically16.4 Income Tax Return forms applicable for the assessment year 2020-2116.5 Manner of furnishing return of income by different persons16.6 E -verification of return of income16.7 Form 26AS17. TAX DEDUCTED AT SOURCE AND ADVANCE TAX17.1 Deduction at source and advance payment [Sec. 190]17.2 Tax deducted at source – Direct payment [Sec. 191]17.3 Tax deducted at source on Interest on securities [Sec. 193]17.4 Tax deducted at source on dividends [Sec. 194]17.5 Tax deducted at source on Interest other than ‘Interest on securities’ [Sec. 194A]17.6 Tax deducted at source on winnings from lottery or crossword puzzle [Sec. 194B]17.7 Tax deducted at source on winnings from horse race [Sec. 194BB]17.8 Tax deducted at source on payment to contractors [Sec. 194C]17.9 Tax deducted at source on payment in respect of life insurance policy [Sec. 194DA]17.10 Tax deducted at source on payment of rent [Sec. 194-I]17.11 Payment on transfer of certain immovable property other than agricultural land [Sec. 194-IA]17.12 Tax deducted at source on payment of fees for professional or technical services [Sec. 194J]17.13 Tax deducted at source – Persons deducting tax to furnish TDS returns [Sec. 206]17.14 Liability for payment of advance tax [Sec. 207]17.15 Conditions of liability to pay advance tax [Sec. 208]17.16 Instalments of advance tax and due dates [Sec. 211]