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INCOME TAX ACT 1961

AFTERSCHO☺OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

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INCOME TAX ACT 1961
Dr. T.K. Jain.
AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk
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TAX?
• ANY CHARGE LEVIED BY GOVT. ON
INCOME, PRODUCTS OR SERVICES.

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DIRECT TAXES?
• THESE INCLUDE THOSE TAXES,
WHICH CANNOT BE TRANSFERRED
TO ANOTHER PERSON:
• INCOME TAX
• WEALTH TAX

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INDIRECT TAX
• These taxes can be transferred to another
person – therefore their liability is
transferable:
• Excise
• Customs
• Service tax
• Sales tax
• VAT
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IT LAW
• IT Act
• Annual Finance Act
• IT rules
• Circulars
• Case laws and precedents.

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Income
• A periodical monetary return - which arises
regularly from a definite source.
• Income from irregular source (for example: lottery) is
also income.
• Includes only revnue receipt (not capital receipt)
• Income can be on cash or on mercantile basis (it
depends on the system adopted by the firm).
• Income is chargeable in the next year – e.g. : income
of 2005-6 (previous) is chargeable in 2006-
7(assessment year).

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Heads of income?
• SALARY
• HOUSE PROPERTY
• BUSINESS & PROFESSION
• CAPITAL GAINS
• OTHER SOURCES

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CLUBBING OF INCOME
• Income of spouse, minor child have tobe
included in the income of the assessee.
(subject to some rules / exceptions)

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Set off & carry forward ..
• You can have inter – head adjustments
(in certain cases) (for example loss in one
head can be adjusted with income from
another head).
• Losses can be carried forward to future
years (subject to some rules and
guidelines).

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Steps…
1. Calculate income from different heads
2. Add the incomes and club them.
3. Carry forward / set off
4. Find GTI (gross total income)
5. Make permissible deductions
6. Find TI (total income).
7. Apply appropriate tax rate
8. Add surcharge + educational cess
9. Make payment of advance tax and TDS and
find returns of income (as per rules).

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assessee
• Sec. 2 (7)
• Any person --- .included deemed
assessee or assessee in default also

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Person 2 (31)
• Include the following:
• Individual
• HUF
• Company
• Firm
• AOP (association of persons)
• BOI (body of individuals)
• Local authority (like municipalities etc.)
• Artificial juridical person.

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Company
• Sec. 2 (17)
• Includes foreign companies also
• Includes associations, which have been
assessed as company by CBDT. (central
board of direct taxes)

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Company in which public are
interested (sec. 2 (18) )
• Sec. 25 company
• Govt. company
• Company whose shares are public listed
• A company which accepts public deposits
• 50% capital is owned by cooperatives
• Declared by board for this.

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Income (sec. 2(24) )
• Includes profits, dividends, volutnary
contributeions received by trusts etc. ,
perqs, allowances, deemed profits, capital
gains, winnings from lottery, money
received under keyman insurance, PF,
ESI etc. (subject to rules and exemptions)

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DIVIDEND (SEC. 2 (22)
• Bonus is not dividend
• Distribution of debentures , deposit
certificates etc. and bonus shares to
prefernece shareholders are dividends
• Reduction of capital to the extent of
accumulated profits is also dividend
• Advance / loan to another company (closely
held company) is also dividend
• Any accumulated profit distributed is
dividend
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Closely held company
• 20% interest in any company
• Or
• 10% in a company – which does not have
public interest

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Taxation of dividend
• 12.5% flat rate of dividend (in addition to
normal income tax charged on income of
the company)
• This is not applicable on dividend from
foreign companies
• This is not applicable on deemed
dividends
• (don’t add it in normal income).
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Fringe benefits …
• Sec. 115WB
• Any privilege
• Free tickets (or concessional)
• Payment by employer for any benefits,
health clubs etc.

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Infrastructure ….
• Infrastructure capital company (sec.
2(26A))
• Infrastructure capital fund (sec. 2(26B))
• Includes telecom, power generation,
industrial parks, SEZs, 3 star hotels,
hospitals (at least 100 bed hospital) , etc.

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Income Tax Rates …
• FOR NORMAL INDIVIDUAL /
HUF/BOI/AOP etc.
• First 110000 = Nil
• Till next 150000 = 10%
• Next 250000 = 20%
• On balance = 30%.

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Other tax rates….
• 20% on long term capital gain
• 10% on short term capital gains (sec.
111A)
• 30% on lottery etc.

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ABOUT AFTERSCHO☺OL
Afterschoool conducts three year integrated PGPSE
(after class 12th along with IAS / CA / CS) and 18
month PGPSE (Post Graduate Programme in Social
Entrepreneurship) along with preparation for CS / CFP /
CFA /CMA / FRM. This course is also available online
also. It also conducts workshops on social
entrepreneurship in schools and colleges all over India –
start social entrepreneurship club in your institution
today with the help from afterschoool and help us in
developing society.

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Why such a programme?
• To promote people to take up entrepreneurship
and help develop the society
• To enable people to take up franchising and
other such options to start a business / social
development project
• To enable people to take up social development
as their mission
• To enable people to promote spirituality and
positive thinking in the world

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Who are our supporters?
• Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs
are supporting us.
• You can also support us – not necessarily
by money – but by being promotor of our
concept and our ideas.

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About AFTERSCHO☺OL PGPSE – the
best programme for developing great
entrepreneurs
• Most flexible, adaptive but rigorous programme
• Available in distance learning mode
• Case study focused- latest cases
• Industry oriented practical curriculum
• Designed to make you entrepreneurs – not just
an employee
• Option to take up part time job – so earn while
you learn
• The only absolutely free course on internet
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Workshops from
AFTERSCHO☺OL
• IIF, Delhi
• CIPS, Jaipur
• ICSI Hyderabad Branch
• Gyan Vihar, Jaipur
• Apex Institute of Management, Jaipur
• Aravali Institute of Management, Jodhpur
• Xavier Institute of Management, Bhubaneshwar
• Pacific Institute, Udaipur
• Engineering College, Hyderabad

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Flexible Specialisations:
• Spiritualising business and society
• Rural development and transformation
• HRD and Education, Social Development
• NGO and voluntary work
• Investment analysis,microfinance and inclusion
• Retail sector, BPO, KPO
• Accounting & Information system (with CA / CS /CMA)
• Hospital management and Health care
• Hospitality sector and culture and heritage
• Other sectors of high growth, high technology and social
relevance

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Salient features:
• The only programme of its kind (in the whole world)
• No publicity and low profile course
• For those who want to achieve success in life – not just a
degree
• Flexible – you may stay for a month and continue the rest of
the education by distance mode. / you may attend weekend
classes
• Scholarships for those from poor economic background
• Latest and constantly changing curriculum – keeping pace
with the time
• Placement for those who are interested
• Admissions open throughout the year
• Latest and most advanced technologies, books and study
material

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Components
• Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
• Meditation, spiritualisation, and self development
• EsGotitial softwares for business
• Business plan, Research projects
• Participation in conferences / seminars
• Workshops on leadership, team building etc.
• Written submissions of research projects/articles / papers
• Interview of entrepreneurs, writing biographies of entrepreneurs
• Editing of journals / newsletters
• Consultancy / research projects
• Assignments, communication skill workshops
• Participation in conferences and seminars
• Group discussions, mock interviews, self development diaryng
• Mind Power Training & writing workshop (by Dr. T.K.Jain)

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Pedagogy
• Case analysis,
• Articles from Harvard Business Review
• Quiz, seminars, workshops, games,
• Visits to entrepreneurs and industrial visits
• PreGotitations, Latest audio-visuals
• Group discussions and group projects
• Periodic self assessment
• Mentoring and counselling
• Study exchange programme (with institutions out of
India)
• Rural development / Social welfare projects
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Branches
• AFTERSCHO☺OL will shortly open its
branches in important cities in India
including Delhi, Kota, Mumbai, Gurgaon
and other important cities.
Afterschooolians will be responsible for
managing and developing these branches
– and for promoting social entrepreneurs.

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Case Studies
• We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs.
Please help us in this process. Help us to
be in touch with entrepreneurs, so that we
may develop entrepreneurs.

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Basic values at AFTERSCHO☺OL
• Share to learn more
• Interact to develop yourself
• Fear is your worst enemy
• Make mistakes to learn
• Study & discuss in a group
• Criticism is the healthy route to mutual support
and help
• Ask fundamental questions : why, when, how &
where?
• Embrace change – and compete with yourself
only
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www.afterschoool.tk
social entrepreneurship for better
society

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