STUDY MATERIAL

EXECUTIVE PROGRAMME

TAX LAWS

MODULE 1
PAPER 4

i
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ii
 EXECUTIVE PROGRAMME
TAX LAWS
This paper consists of two parts, namely Direct tax and Indirect tax. The tax that is levied directly on the income
or wealth of a person is called Direct tax. Indirect taxes were the taxes levied on goods and services on the basis
of production, sale or purchase of goods or provision of services in the form of import and export duty, excise,
customs, entertainment tax, electricity duty, tax on passenger fares and freight etc. and now Goods & Services
Tax levies on supply of goods and/or services.
The purpose of this study material is to impart conceptual understanding to the students of the provisions of
the direct tax laws (Income Tax) and indirect tax laws (GST and Customs) covered in the Syllabus. This study
material has been published to aid the students in preparing for the Tax Laws paper of the CS executive
Programme. It is part of the educational kit and takes the students step by step through each phase of preparation
stressing on key concepts, pointers and procedures. Company Secretaryship, being a professional course, the
examination standards are set very high, with emphasis on knowledge of concepts, their applications,
procedures under the tax laws and case laws therein, for which sole reliance on the contents of this study
material may not be enough.
Š‡•—„Œ‡…–‘ˆƒšƒ™•‹•‹Š‡”‡–Ž›…‘’Ž‹…ƒ–‡†ƒ†‹••—„Œ‡…–‡†–‘…‘•–ƒ–”‡ϐ‹‡‡––Š”‘—‰Š‡™’”‹ƒ”›
Ž‡‰‹•Žƒ–‹‘•ǡ”—Ž‡•ƒ†”‡‰—Žƒ–‹‘•ƒ†‡–Š‡”‡—†‡”ǡƒ—ƒŽ—†‰‡–ƒ†…‘—”–†‡…‹•‹‘•‘•’‡…‹ϐ‹…Ž‡‰ƒŽ‹••—‡•Ǥ
It therefore becomes necessary for every student to constantly update himself with the various changes made
as well as judicial pronouncements rendered from time to time by referring to the institute’s journal ‘Chartered
Secretary’ and ‘Student Company Secretary e-bulletin’ as well as other law/professional journals on tax laws.
ICSI also brings out a monthly ICSI-GST Newsletter, dedicated solely to updates, current affairs and other
reading material under the novel Goods and Services Tax regime.
Besides, as per the Company Secretaries Regulations, 1982, students are expected to be conversant with the
amendments to the laws applicable for relevent examination.
The legislative changes made upto July 31, 2021 have been incorporated in the study material. However, it may
so happen that some developments might have taken place during the printing of the study material and its
supply to the students. The students are therefore, advised to refer to the e-bulletin and other publications for
updation of the study material.
–Š‡‡˜‡–‘ˆƒ›†‘—„–ǡ•–—†‡–•ƒ›™”‹–‡–‘–Š‡‹”‡…–‘”ƒ–‡‘ˆ…ƒ†‡‹…•‘ˆ–Š‡•–‹–—–‡ˆ‘”…Žƒ”‹ϐ‹…ƒ–‹‘Ǥ
Although due care has been taken in publishing this study material, the possibility of errors, omissions and/or
discrepancies cannot be ruled out. This publication is released with an understanding that the Institute shall
not be responsible for any errors, omissions and/or discrepancies or any action taken in that behalf. Should
there be any discrepancy, error or omission noted in the study material, the institute shall be obliged if the same
is brought to its notice for issue of corrigendum in the e-bulletin ‘Student Company Secretary’.
The study material contains a Model test Paper at the end. This is for practice purpose only, and not to be sent
to the Institute.
’‘”–ƒ––‘‘–‡ǣ
‹”‡…–ƒšƒ”–ǣŠ‹••–—†›ƒ–‡”‹ƒŽȋ‹”‡…–ƒšƒ”–Ȍ‹•„ƒ•‡†‘ ‹ƒ…‡…–ǡʹͲʹͳƒ’’Ž‹…ƒ„Ž‡ˆ‘”
••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵ƒ†‹•—•‡ˆ—Žˆ‘”•–—†‡–•ƒ’’‡ƒ”‹‰‹ —‡ǡʹͲʹʹ•‡••‹‘‘™ƒ”†•Ǥ‡•‹†‡•ǡ
ƒ• ’‡” –Š‡ ‘’ƒ› ‡…”‡–ƒ”‹‡• ‡‰—Žƒ–‹‘•ǡ ͳͻͺʹǡ •–—†‡–• ƒ”‡ ‡š’‡…–‡† –‘ „‡ …‘˜‡”•ƒ– ™‹–Š –Š‡
ƒ‡†‡–• –‘ –Š‡ Žƒ™• ƒ’’Ž‹…ƒ„Ž‡ ˆ‘” –Š‡ ”‡Ž‡˜ƒ– ‡šƒ‹ƒ–‹‘Ǥ Š‡ •–—†‡–• ƒ› ƒŽ•‘ —’†ƒ–‡
–Š‡•‡Ž˜‡•‘ˆ–Š‡Žƒ–‡•–†‡˜‡Ž‘’‡–•ǡ‘–‹ϐ‹…ƒ–‹‘•ƒ†…‹”…—Žƒ”•‘‹”‡…–ƒšˆ”‘‹…‘‡–ƒš‹†‹ƒǤ
‰‘˜Ǥ‹Ǥ
†‹”‡…–ƒšƒ”–ǣŠ‡Ž‡‰‹•Žƒ–‹˜‡…Šƒ‰‡•ƒ†‡—’–‘ —Ž›͵ͳǡʹͲʹͳǡŠƒ˜‡„‡‡‹…‘”’‘”ƒ–‡†‹–Š‹••–—†›
ƒ–‡”‹ƒŽǤ ‡•‹†‡•ǡ ƒ• ’‡” –Š‡ ‘’ƒ› ‡…”‡–ƒ”‹‡• ‡‰—Žƒ–‹‘•ǡ ͳͻͺʹǡ •–—†‡–• ƒ”‡ ‡š’‡…–‡† –‘ „‡
…‘˜‡”•ƒ–™‹–Š–Š‡ƒ‡†‡–•–‘–Š‡Žƒ™•ƒ’’Ž‹…ƒ„Ž‡ˆ‘”–Š‡”‡Ž‡˜‡–‡šƒ‹ƒ–‹‘ǤŠ‡•–—†‡–•ƒ›
—’†ƒ–‡–Š‡•‡Ž˜‡•‘ˆ–Š‡Žƒ–‡•–†‡˜‡Ž‘’‡–•ǡ‘–‹ϐ‹…ƒ–‹‘•ƒ†…‹”…—Žƒ”•‘†‹”‡…–ƒšˆ”‘…„‹…Ǥ‰‘˜Ǥ‹Ǥ
From December 2019 session onwords, the Institute conducted the examination for this paper under new
syllabus in Optical Mark Recognition (OMR) format.

iii
 
Ȃ
The subject of tax laws at CS executive level is divided into two parts with equal weight age of marks.
Ȉ Part I – Direct Tax (50 Marks)
Ȉ Part II – Indirect Tax (50 Marks)

ȂȋͷͲȌ

Income Tax Act, 1961 provides for levy, administration, collection and recovery of income tax. it provides
progressive rate schedule, exemption limits, and incorporates number of incentive provisions. it provides sound
tax system. rate schedule & exemption limits are prescribed by Finance act.
Indian tax legislative and judicial environment is constantly evolving, along with globalization, economic shifts,
and operational adjustments. Businesses are faced with a tax regime with greater complexities and challenges,
nonetheless moving towards a globally cohesive tax world. Now, more than ever, businesses must have an
ongoing system for adapting to and staying on top of these complex changes.
Š‡–ƒšŽƒ™•‘ˆ–Š‡…‘—–”›—†‡”‰‘•‹‰‹ϐ‹…ƒ–…Šƒ‰‡•‡˜‡”››‡ƒ”‘–Š‡’ƒ••‹‰‘ˆ—ƒŽ ‹ƒ…‡…–Ǥ’ƒ”–
ˆ”‘–Š‡ƒ‡†‡–•…‘‹‰‘—–‡˜‡”››‡ƒ”–Š”‘—‰Š–Š‡ ‹ƒ…‡…–ǡ–Š‡”‡ƒ”‡…‹”…—Žƒ”•Ȁ‘–‹ϐ‹…ƒ–‹‘•‹••—‡†
by the CBDT / CBEC to implement the provision of the Act, clarifying the scope of the provision.
The part I of the study material is related to direct taxes and comprises of total 10 lesson. the broad coverage of
the lessons is summarized in the below chart.

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Direct Taxes at a glance >/HVVRQ@
 [Lesson 1]



 Exempt Income Computation of Income under Various Heads

[Lesson 3] [Lesson 4]



Clubbing provisions and Set Off and / or Deductions from Gross Total Income & Rebate and

Carry Forward of Losses [Lesson 5] Relief [Lesson 6]



Computation of Total Income and Tax Classification and Tax Incidence on Companies
Liability of various entities [Lesson 7] [Lesson 8]



Procedural Compliance [Lesson 9]


 Assessment, Appeals & Revision [Lesson 10] 

‹˜
 ROLE OF COMPANY SECRETARIES IN DIRECT TAX

The Company Secretaries as experienced tax professionals can assist in resolving various challenges such as
‡‡’‹‰ƒ„”‡ƒ•–™‹–Š–ƒš”‡‰—Žƒ–‹‘•ǡ‡ˆϐ‹…‹‡–Ž›ƒƒ‰‡…‘’Ž‹ƒ…‡•ǡƒ††”‡••—…‡”–ƒ‹–ƒš’‘•‹–‹‘•ǡƒ‘‰
many others. the Company Secretaries can provide with an insight into how to best work to meet the business
needs.
The following are the key important areas under the direct tax regime where a Company Secretaries can play a
vital role.

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†˜‹•‘”›ǣ Corporate taxation is an essential aspect of doing business in india and its importance cannot be
undermined. The Company Secretaries can provide the corporate tax advisory services in the following areas:
Ȉ •–ƒ„Ž‹•Š‹‰–ƒš‡ˆϐ‹…‹‡–†‹ƒ„—•‹‡••’”‡•‡…‡ˆ‘”ƒ
Ȉ Assisting an entrepreneur in establishing business
Ȉ Expanding into new sectors
Ȉ Planning a heavy capital outlay in the existing business
Ȉ ††”‡••‹‰…‘…‡”•ƒ„‘—–…ƒ•ŠϐŽ‘™ƒ†‡šƒ‹‹‰–ƒš‹‡ˆϐ‹…‹‡…‹‡•
Ȉ Ensuring that the tax function is aligned with the business plan
Ȉ Assessing the impact of any tax and regulatory changes/ amendments
ƒš‘’Ž‹ƒ…‡•ǣ As the complexities of businesses increase, the amount of time spent by professionals in
cracking up the law codes increases. However, tax and regulatory systems of even the most developed countries
cannot keep pace with the developments across each industry as businesses emerge day by day. these also
bring out the requirements for new compliances and the challenges of meeting them every single day. More
†‡–ƒ‹Ž‡† …‘‡ ƒš ‡–—” ˆ‘”• ‹…Ž—†‹‰ †‹•…Ž‘•—”‡• ‘ –ƒš ”‡•‹†‡…› …‡”–‹ϐ‹…ƒ–‡• ƒ† †‡–ƒ‹Ž• ‘ˆ ˆ‘”‡‹‰
ƒ••‡–•ǡƒ†Š‹‰Š‡”’‡ƒŽ–‹‡•ˆ‘”‘†‹•…Ž‘•—”‡•”‡“—‹”‡„—•‹‡••‡•–‘‰‡ƒ”—’ˆ‘”‡ˆϐ‹…‹‡––ƒš…‘’Ž‹ƒ…‡Ǥ
Ȉ Advising on withholding tax obligations on payments
Ȉ „–ƒ‹‹‰‘Ǧ‘„Œ‡…–‹‘…‡”–‹ϐ‹…ƒ–‡•
Ȉ ••‹•–‹‰‹ϐ‹Ž‹‰˜ƒ”‹‘—•–ƒš”‡–—”•ƒ†ƒ‹‰ƒ†‡“—ƒ–‡†‹•…Ž‘•—”‡•Ǥ
Ȉ Tax diagnostic reviews

˜
 Ȉ Enhancing ERP systems to meet tax management requirements
Ȉ Tax implications on payments (local or overseas) to a host of parties
Ȉ Reporting of multilayered tax issues
‡’”‡•‡–ƒ–‹‘‡”˜‹…‡•ǣ the Company Secretaries can also represent the client before appellate authority at
various levels.
Ȉ Representation before the income tax and withholding tax authorities
Ȉ Providing corporate tax litigation assistance, including representation services
Ȉ Obtaining advance rulings and opinion from senior counsels
‘–‡ǣŠ‡–—†›ƒ–‡”‹ƒŽ‘‹”‡…–ƒšƒ™•ȋƒ”–Ȍ‹•„ƒ•‡†‘–Š‡’”‘˜‹•‹‘•‘ˆ…‘‡ƒšƒ™ƒ•
ƒ‡†‡† „› –Š‡ ‹ƒ…‡ …–ǡ ʹͲʹͳ ƒ† –Š‡ •‹‰‹ϐ‹…ƒ– …‹”…—Žƒ”• ‹••—‡† —’–‘ —Ž› ͵ͳǡ ʹͲʹͳǤ Š‡
…‘’—–ƒ–‹‘ƒŽȀ’”ƒ…–‹…ƒŽ’”‘„Ž‡•Šƒ˜‡„‡‡•‘Ž˜‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ‹…‘‡–ƒšŽƒ™•
ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ʹͲʹʹǦʹ͵ǤŠ‡•–—†›ƒ–‡”‹ƒŽȋ‹”‡…–ƒšƒ™•ƒ”–Ȍ‹•”‡Ž‡˜ƒ–ˆ‘”–Š‡•–—†‡–•ˆ‘”
—‡ǡʹͲʹʹ‡šƒ‹ƒ–‹‘•‘™™ƒ”†•Ǥ

ȂȋͷͲȌ

Indirect Taxes are the taxes levied on goods and services on the basis of production, sale or purchase of goods
or provision of services, in the form of Import and Export duty, Excise, Eales Tax, Value Added Tax (VAT), Service
Tax, Entertainment Tax, Electricity duty, Tax on passenger fares and freights etc. they are called Indirect Taxes
as the burden of tax is passed on to the consumer unlike direct taxes which are supposed to be borne by the
persons on whom these taxes are levied.
Broadly, the earlier indirect tax regime can be looked at from the point of view of Central and State laws. For the
Central Government, Central excise, Customs and Service Tax were the three main components of Indirect
Taxes. Similarly, for the State Governments, Value Added Tax and Central Sales Tax were major taxes along with
Octroi, entertainment Tax etc.
The taxation reforms in india go back right from liberalization and globalization in the early 1990s to the recent
Goods and Services Tax (GST). Goods and Services Tax is one of the most comprehensive single tax reforms of
independent india. GST is a comprehensive Indirect tax levied on goods as well as services at the national level.
It consolidated multiple indirect tax levies into a single tax thus subsuming an array of tax levies. However,
Basic Customs duty continues to be levied on imports.

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…‘•‹•–•‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ϐ‹˜‡…–•ǣ
(1) Central Goods and Services Tax Act, 2017
(2) Integrated Goods and Services Tax Act, 2017
(3) State Goods and Services Tax Act, 2017
(4) Union Territory Goods and Services Tax Act, 2017
(5) Goods and Services (Compensation to States) Act, 2017
The study material broadly covers an overview of the GST Acts focusing upon the following key topics
– Basics, registration, returns, Payments, Composition Scheme, Concept of Supply, Reverse Charge Mechanism
and other aspects of GST. The purpose of this study material is to impart conceptual understanding to the
students of the provisions of the novel Indirect Tax Laws along with an overview of provisions of Customs.

ƒ†’’‘”–—‹–‹‡•
ƒŽ‘”‡ˆ‘”‘’ƒ›‡…”‡–ƒ”‹‡•
Company Secretaries, who practice in almost all the branches of law and possess a robust understanding on
accounting, are competent professionals to handle the regulatory compliance under the GST laws. They are
•‹ŽŽ‡† ’”‘ˆ‡••‹‘ƒŽ• ™Š‘ —†‡”•–ƒ† Ž‡‰ƒŽǡ ϐ‹ƒ…‹ƒŽ ƒ† …‘’Ž‹ƒ…‡ †‹‡•‹‘• ‘ˆ „—•‹‡•• ‡–‹–›
comprehensively. Company Secretaries are already acting as extended arms of the regulatory mechanism and
are well equipped to partner in the tasks under GST regime to facilitate the stakeholders in GST preparedness
by extending their needful services.

Planning,
compliances

Employment
with
GST awareness Corporates-
dealing with
Indirect taxes

Role
of CS
Representation
Advisory
in
Services Tribunals/Courts

GST
Practitioner

˜‹‹

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‘˜‡”ƒ…‡”‘ˆ‡••‹‘ƒŽ•Ǧ‹Ǧƒ‹‰
The students are expected to gear up to enhance their perceptive knowledge and involve in capacity building
initiatives. They must make the best use of this opportunity to augment their professional ambit in future under
†‹”‡…–ƒš‡•Ǥ
‹••—„Œ‡…––‘…‘•–ƒ–”‡ϐ‹‡‡––Š”‘—‰Š‡™”—Ž‡•ƒ†—’†ƒ–‡†‘–‹ϐ‹…ƒ–‹‘•ƒ•™‡ŽŽƒ•
circulars. It is thus expected of the student to be regularly updated about the developments taking place under
the Law.
‘–‡ǣ Š‡ Ž‡‰‹•Žƒ–‹˜‡ …Šƒ‰‡• ƒ†‡ —’ –‘ —Ž› ʹͲʹͳǡ Šƒ˜‡ „‡‡ ‹…‘”’‘”ƒ–‡† ‹ –Š‹• •–—†› ƒ–‡”‹ƒŽǤ
‡•‹†‡•ǡ ƒ• ’‡” –Š‡ ‘’ƒ› ‡…”‡–ƒ”‹‡• ‡‰—Žƒ–‹‘•ǡ ͳͻͺʹǡ –—†‡–• ƒ”‡ ‡š’‡…–‡† –‘ „‡ …‘˜‡”•ƒ–
™‹–Š –Š‡ ƒ‡†‡–• –‘ –Š‡ Žƒ™• ƒ’’Ž‹…ƒ„Ž‡ ˆ‘” ”‡Ž‡˜‡– ‡šƒ‹ƒ–‹‘Ǥ Š‡ •–—†‡–• ƒ› —’†ƒ–‡
–Š‡•‡Ž˜‡•‘ˆ–Š‡Žƒ–‡•–†‡˜‡Ž‘’‡–•ǡ‘–‹ϐ‹…ƒ–‹‘•ƒ†…‹”…—Žƒ”•‘†‹”‡…–ƒšˆ”‘…„‹…Ǥ‰‘˜Ǥ‹Ǥ

˜‹‹‹
 EXECUTIVE PROGRAMME
‘†—Ž‡ͳ
ƒ’‡”Ͷ
ƒšƒ™•ȋƒšƒ”•ͳͲͲȌ
›ŽŽƒ„—•
„Œ‡…–‹˜‡ǣ

ƒ”–ǣ ‘’”‘˜‹†‡™‘”‹‰‘™Ž‡†‰‡‘’”ƒ…–‹…ƒŽƒ’’Ž‹…ƒ–‹‘‘ˆ‹”‡…–ƒšƒ™•Ǥ

ƒ”–ǣ‘’”‘˜‹†‡…‘…‡’–—ƒŽ‘™Ž‡†‰‡‘ˆ
™‹–Š’”ƒ…–‹…ƒŽƒ’’Ž‹…ƒ–‹‘‘ˆ
ƒ™•Ǥ

ǣȋͷͲƒ”•Ȍ

‡–ƒ‹Ž‡†‘–‡–•
1. ‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ǣ Background of Taxation system in India; Vital Statistics; layout; Administration.
ʹǤ ƒ•‹……‘…‡’–•‘ˆ…‘‡ƒšǣ˜‡”˜‹‡™‘ˆ ‹ƒ…‡‹ŽŽǡǢ’‘”–ƒ–†‡ϐ‹‹–‹‘•—†‡”…‘‡ƒš
Act, 1961; Distinction between Capital and Revenue receipts and expenditure; Residential Status & Basis
of Charge; Scope of Total Income; Tax Rates.
͵Ǥ …‘‡•™Š‹…Š†‘‘–ˆ‘”’ƒ”–‘ˆ‘–ƒŽ…‘‡ǣ Incomes not included in total income; Tax holidays.
ͶǤ ‘’—–ƒ–‹‘ ‘ˆ …‘‡ —†‡” ƒ”‹‘—• ‡ƒ†• ǣ Income from Salary; Income from House Property;
”‘ϐ‹–ƒ†
ƒ‹•‘ˆ—•‹‡••‘””‘ˆ‡••‹‘Ǣƒ’‹–ƒŽ
ƒ‹•Ǣ…‘‡ˆ”‘–Š‡”‘—”…‡•Ǣ ƒ‹”ƒ”‡–ƒŽ—‡Ǥ
ͷǤ Ž—„„‹‰’”‘˜‹•‹‘•ƒ†‡–ˆˆƒ†Ȁ‘”ƒ””› ‘”™ƒ”†‘ˆ‘••‡•ǣ Income of other persons included
in Assessee’s Total Income; Aggregation of Income; Set off and / or Carry forward of losses.
͸Ǥ ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡Ƭ‡„ƒ–‡ƒ†‡Ž‹‡ˆǣ Deductions in respect of certain payments;
’‡…‹ϐ‹… †‡†—…–‹‘• ‹ ”‡•’‡…– ‘ˆ …‡”–ƒ‹ ‹…‘‡Ǣ ‡†—…–‹‘• ‹ ”‡•’‡…– ˆ‘” †‘ƒ–‹‘• ˆ‘” ‡š’‡†‹–—”‡
under CSR activities; Rebates and Reliefs.
͹Ǥ ‘’—–ƒ–‹‘ ‘ˆ ‘–ƒŽ …‘‡ ƒ† ƒš ‹ƒ„‹Ž‹–› ‘ˆ ˜ƒ”‹‘—• ‡–‹–‹‡• ǣ Individual; Hindu undivided
Family ‘HUF’; Alternate Minimum Tax (AMT); Partnership Firm / LLP; Co-operative Societies; Association
of Person ‘AOP’ and Body of Individual ‘BOI’; Political Parties; Electoral Trusts; Exempt Organization –
Registration u/s 12A/ 12AA;
ͺǤ Žƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡•ǣ Computation of taxable income and tax liability of
Company; Dividend Distribution Tax; Minimum Alternate Tax ‘MAT’; Other Special Provisions relating to
Companies; equalization levy.
ͻǤ ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡ǣ Permanent account Number ‘PAN’ / Tax Collection account Number ‘TAN’; Tax
Deduction at Source ‘TDS’ & Tax Collection at Source ‘TCS’; Advance Tax & Self Assessment Tax ‘SAT’;
Returns, Signatures, E-Filing; Fee and interest for default in furnishing return of Income; Collection,
Recovery of Tax, Refunds.
ͳͲǤ ••‡••‡–ǡ ’’‡ƒŽ• Ƭ ‡˜‹•‹‘ ǣ Assessment; Types of Assessment; Appeals; Revisions; Search,
Seizure, Penalty and Offences.
ƒ•‡ƒ™•ǡƒ•‡–—†‹‡•Ƭ”ƒ…–‹…ƒŽ•’‡…–•Ǥ

‹š
 ǣȋͷͲȌ

ȋȌ
‘‘†•ƒ†‡”˜‹…‡•ƒš
ͳͳǤ ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ‰Žƒ…‡ǣ Background; Constitutional Powers of Taxation; Indirect Taxes in
†‹ƒȂ˜‡”˜‹‡™Ǣ”‡Ǧ
ƒš–”—…–—”‡ƒ†‡ϐ‹…‹‡…‹‡•Ǣ†‹‹•–”ƒ–‹‘‘ˆ†‹”‡…–ƒšƒ–‹‘‹†‹ƒǢ
Existing Tax Structure.
ͳʹǤ ƒ•‹…•‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒšǮ
ǯǣBasics Concept and Overview of GST; Constitutional Framework
of GST; GST Model – CGST /IGST / SGST / UTGST; Taxable Event; Concept of supply including Composite
and Mixed Supply; Levy and Collection of CGST and IGST; Composition Scheme & Reverse Charge;
Exemptions under GST.
ͳ͵Ǥ ‘…‡’–‘ˆ‹‡ǡƒŽ—‡ƬŽƒ…‡‘ˆƒšƒ„Ž‡—’’Ž›ǣ Basic Concepts of Time and Value of Taxable Supply;
Basics Concept of Place of Taxable Supply.
ͳͶǤ ’—–ƒš”‡†‹–Ƭ‘’—–ƒ–‹‘‘ˆ
‹ƒ„‹Ž‹–›Ǧ˜‡”˜‹‡™Ǥ
ͳͷǤ ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
ǣ Registration; Tax Invoice, Debit & Credit Note, Account and Record,
Electronic Way Bill; Return, Payment of Tax, Refund Procedures; Audit.
ͳ͸Ǥ ƒ•‹…‘˜‡”˜‹‡™‘–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡ƒšȋ
Ȍǡ‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡–ƒš
ȋ
Ȍǡƒ†
‘’‡•ƒ–‹‘–‘–ƒ–‡•Ǥ
ȋȌ —•–‘•…–
ͳ͹Ǥ ˜‡”˜‹‡™‘ˆ—•–‘•…–ǣ Overview of Customs Law; Levy and Collection of Customs Duties; Types of
—•–‘—–‹‡•ǢŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒŽ—ƒ–‹‘‘ˆ’‘”–ƒ†š’‘”–
‘‘†•Ǣš‡’–‹‘Ǣˆϐ‹…‡”•‘ˆ—•–‘•Ǣ
Administration of Customs Law; Import and Export Procedures; Transportation, and Warehousing; Duty
”ƒ™„ƒ…Ǣ‡ƒ†ƒ†‡…‘˜‡”›Ǣ‘ϐ‹•…ƒ–‹‘‘ˆ
‘‘†•ƒ†‘˜‡›ƒ…‡•Ǣ‡ˆ—†Ǥ
ƒ•‡ƒ™•ǡƒ•‡–—†‹‡•Ƭ”ƒ…–‹…ƒŽ•’‡…–•Ǥ

š
 LESSON WISE SUMMARY
TAX LAWS
Ȃ

‡••‘ͳȏ‹”‡…–ƒš‡•Ǧ–ƒ
Žƒ…‡Ȑ
In the present time, taxation is not just a means of transferring money to the government to spend it for meeting
the public expenditures or raise revenue to the government, but taxes have become beside that, as a tool for
redistribution of income and wealth in the society. It also serves as a means of economic development and plays
ƒ•‹‰‹ϐ‹…ƒ–”‘Ž‡‹•–ƒ„‹Ž‹œƒ–‹‘‘ˆ‹…‘‡Ǥƒšƒ–‹‘ƒ••‹•–‹ϐ‹†‹‰•‘Ž—–‹‘•–‘–Š‡‡…‘‘‹…’”‘„Ž‡•™Š‹…Š
ƒ”‡ˆƒ…‡†„›ƒ…‘—–”›ǡŽ‹‡—‡’Ž‘›‡–ǡ‹ϐŽƒ–‹‘ǡƒ††‡’”‡••‹‘Ǥ‘—–”‹‡•’”ƒ…–‹…‡•‘˜‡”‡‹‰–›ƒ—–Š‘”‹–›
upon its citizens, through levying of taxes.
The coverage of the lesson would include:
Ȉ Taxes – Types of taxes and its characteristics, objectives
Ȉ The Canons of Taxes
Ȉ Direct v/s Indirect Taxation
Ȉ The Background of Indian Taxation System and its structure
Ȉ Tax Administration
Ȉ The Vital Statistics and layout of tax
‡••‘ʹȏƒ•‹…‘…‡’–•‘ˆ…‘‡ƒšȐ
Taxes are broadly divided into two parts i.e. Direct Taxes and Indirect Taxes. The tax that is levied directly on the
income or wealth of a person is called Direct Tax. Income tax is one of the forms of direct taxes. The levy of
income tax in India is governed by the Income Tax Act, 1961 and Income Tax Rules, 1962. It is charged on the
total income and to derive the total income one must know certain concepts of the income tax act, such as
residential status, assessment year, previous year, assessee etc.
Income tax is leviable on the taxable income and to determine taxable income, ascertainment of the residential
status of the person and scope of total income are required at an initial level. There are two types of taxpayers
from residential point of view - Resident in India and Non-resident in India. Sourced based income in india is
taxable in india whether the person earning income is resident or non-resident. Conversely, foreign sourced
income of a person is taxable in india only if such person is resident in India. Therefore, the determination of
–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ’‡”•‘‹•˜‡”›•‹‰‹ϐ‹…ƒ–‹‘”†‡”–‘ϐ‹†‘—–Š‹•ȀŠ‡”–ƒšŽ‹ƒ„‹Ž‹–›Ǥ
The coverage of the lesson would include:
Ȉ Overview of Finance Bill
Ȉ Some basic concepts like Assessment Year, Previous Year, Income, Person, Assessee,
Ȉ Distinguish between Capital and Revenue receipts etc.
Ȉ Basic steps in the calculation of Tax Liability.
Ȉ Be able to determine the residential status of a person
Ȉ Be aware of the importance of residential status for tax purposes
Ȉ The scope of Total Income
Ȉ The Rates of tax

š‹
 ‡••‘͵ȏ…‘‡•™Š‹…Š†‘‘–ˆ‘”ƒ”–‘ˆ‘–ƒŽ…‘‡Ȑ
Tax is calculated on the income earned in the previous year. For providing relief to the tax payers from payment
of tax, income tax law contains certain provisions relating to exemption and deduction. Exempted income
means the income which is not charged to tax. Under income tax act, section 10 provides for incomes which are
exempted from levy of income tax for example Scholarship etc. Further, deduction means the amount which
‡‡†•–‘„‡‹…Ž—†‡†‹–Š‡‹…‘‡ϐ‹”•–ƒ†–Š‡–Š‡›ƒ”‡ƒŽŽ‘™‡†ˆ‘”†‡†—…–‹‘‹ˆ—ŽŽ‘”‹’ƒ”–‘ˆ—Žϐ‹ŽŽ‡–
of certain conditions. For example, deduction for payment of donations under section 80G. This lesson deals
with incomes which do not form part of total income.
‡••‘Ͷȏ‘’—–ƒ–‹‘‘ˆ…‘‡—†‡”ƒ”‹‘—•‡ƒ†•Ȑ
The taxability of income of a person depends on the chargeability of such income under the Income Tax Act
1961. The total income of an assessee (subject to statutory exemptions) is chargeable under Section 4(1). The
•…‘’‡‘ˆ–Š‡–‘–ƒŽ‹…‘‡ǡ™Š‹…Š˜ƒ”‹‡•™‹–Š–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•ǡ‹•†‡ϐ‹‡†‹‡…–‹‘ͷǤ‡…–‹‘ͳͶ‡—‡”ƒ–‡•
the heads of income under which the income of an assessee will fall. The rules for computing income and the
permissible deductions under different heads of income, are dealt in different sections of the Act.
The coverage of the lesson includes the heads of income (as mentioned below), along with their corresponding
set of sections for the purpose of computation of income.

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‡••‘ͷȏŽ—„„‹‰’”‘˜‹•‹‘•ƒ†‡–ˆˆƒ†Ȁ‘”ƒ””› ‘”™ƒ”†‘ˆ‘••‡•Ȑ
In addition to the general provisions which are applicable for computation of total income, there are special
provisions in Sections 60 to 65 of the income-tax act which provide for inclusion of income of other persons in
the total income of assessee. The special provisions contained in these sections are designed to counteract the
various attempts of an individual for avoiding or reducing his liability to tax by transferring his assets or income
to other person(s) while, at the same time, retaining certain powers or interest over the property or it’s income.
Š‡•‡’”‘˜‹•‹‘•ƒ›ƒŽ•‘„‡–‡”‡†ƒ•…Ž—„„‹‰’”‘˜‹•‹‘•ƒ†ƒ”‡…‘˜‡”‡†—†‡”ϐ‹”•–’ƒ”–‘ˆ–Š‡Ž‡••‘Ǥ
the second part of this lesson provisions for set-off and carry forward of losses are discussed.

š‹‹
 ‡••‘͸ȏ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆȐ
The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income
and set off of losses, is known as “Gross Total Income”. Sections 80C to 80U of the Income-tax Act lay down the
provisions relating to the deductions allowable to assessees from their gross total income.
The coverage of the lesson would include:
Ȉ The type of deductions allowable from gross total income
Ȉ The permissible deductions in respect of payments
Ȉ The permissible deductions in respect of incomes
Ȉ Deductions allowable in the case of a person with disability.
Ȉ The provision related to rebate & relief.
‡••‘͹ȏ‘’—–ƒ–‹‘‘ˆ‘–ƒŽ…‘‡ƒ†ƒš‹ƒ„‹Ž‹–›‘ˆƒ”‹‘—•–‹–‹‡•Ȑ
‘”…ƒŽ…—Žƒ–‹‘‘ˆ‹…‘‡ǡƒ‘—–”‡…‡‹˜‡†‹•…Žƒ••‹ϐ‹‡†—†‡”ͷŠ‡ƒ†•‘ˆ‹…‘‡Ǣ‹–‹•–Š‡–‘„‡ƒ†Œ—•–‡†™‹–Š
reference to the provisions of the income tax laws in the following manner.

ƒ”–‹…—Žƒ”• ‘—–ȋ•ǤȌ
Income under the Head:
Income from Salaries XXX
+ Income from House Property XXX
Ϊ”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ—•‹‡••‘””‘ˆ‡••‹‘ XXX
+ Capital Gains XXX
+ Income from Other Sources XXX
†Œ—•–‡–‹”‡•’‡…–‘ˆǣ
+ Clubbing of income XXX
– Set off and carry forward of losses (XXX)

α
”‘••‘–ƒŽ…‘‡ XXX
– Deductions under section 80C to 80U (or Chapter VIA) (XXX)
α‘–ƒŽ…‘‡ XXX

The coverage of the lesson would include the income tax treatment with relation to individual, Hindu undivided
Families (HUF), Firms, Associations of Persons and Co-operative Societies is being discussed. The Tax
implications, rates of tax and other issues relating to the above persons have been discussed elaboratory.
‡••‘ͺȏŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡•Ȑ
In the previous lessons we have learn the tax provisions of persons not being the company. Here, we will go
through the income tax provisions of corporate entity.
The coverage of the lesson would include:
Ȉ The constitutional provisions for companies with regard to Income tax,
Ȉ Domestic and Foreign Companies,
Ȉ Provisions of Minimum Alternate Tax

š‹‹‹
 Ȉ Taxation of Dividend
Ȉ Provision related to Equalization Levy
Ȉ ’‡…‹ϐ‹…’”‘˜‹•‹‘•”‡Žƒ–‡†–‘ǡ
– Buyback of Shares listed on recognized Stock exchange
– Conversion of an Indian Branch of a foreign company into an indian subsidiary company
 Ȃ ƒš‘…‘‡†‹•–”‹„—–‡†„›•’‡…‹ϐ‹‡†…‘’ƒ›‘”—–—ƒŽ —†
– Taxation aspects related to Conversion of Company into an LLP
– Tax liability of company in the event of liquidation
– Taxation of Share Premium
– Taxation aspects of Amalgamation, Mergers and De-mergers
‡••‘ͻȏ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡Ȑ
The Income-Tax Act provides for collection and recovery of income-tax in the following ways, namely:
Ȉ Deduction of tax at source
Ȉ Advance payment of tax
Ȉ Self-assessment of tax
Ȉ Payment made after the assessment of tax.
Once the tax is deducted, it is duty to deposit the same to the credit of the Central Government under prescribed
procedures stated under the Income Tax Act, 1961. in this chapter TDS related aspects of the income tax act
have been discussed at length with special emphasis on e-TDS and other relevant issues.
The coverage of the lesson would include
Ȉ The provisions related to tax deducted at source and tax collected at source
Ȉ The rates of tax deduction at Source ‘TDS’ and Tax Collection at Source ‘TCS’
Ȉ The due dates for payment of TDS and TCS and Advance Tax
Ȉ The provision related to Returns, e-Filing, Signature
Ȉ Fee and Interest
‡••‘ͳͲȏ••‡••‡–ǡ’’‡ƒŽ•ƒ†‡˜‹•‹‘Ȑ
The provisions of the Income-Tax Act contained in Sections 117 to 136 specify the procedure relating to the
appointment of the various income-tax authorities, their powers, functions, jurisdiction and control. the
’”‘…‡†—”‡—†‡”–Š‡…‘‡Ǧƒš…–ˆ‘”ƒ‹‰ƒƒ••‡••‡–‘ˆ‹…‘‡„‡‰‹•™‹–Š–Š‡ϐ‹Ž‹‰‘ˆƒ”‡–—”‘ˆ
income. Section 139 of the Act contains the relevant provisions relating to the furnishing of a return of income.
On the basis of return of income the Income Tax Authority makes the assessment.
The coverage of the lesson would include:
Ȉ The various Income-Tax authorities, their powers, functions, jurisdiction and control.
Ȉ The types of assessment
The income-tax act provides for various remedies to an assessee on completion of the assessment. the main
”‡‡†‹‡•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒƒ••‡••‡‡‘…‘’Ž‡–‹‘‘ˆ–Š‡ƒ••‡••‡–ƒ”‡’’‡ƒŽ•ǡ‡˜‹•‹‘ǡƒ†‡…–‹ϐ‹…ƒ–‹‘ǤŽŽ
these remedies work in different areas. However, strictly speaking the remedies are not alternative to each
other but at times more than one remedial proceeding may be used as complimentary to each other so as to
achieve the best results.

š‹˜
The right to appeal arises where the taxpayer is aggrieved by the order passed by the income-tax authority. the
coverage of the lesson would also include :
Ȉ Š‡’”‘˜‹•‹‘•ˆ‘”ϐ‹Ž‹‰‘ˆƒƒ’’‡ƒŽǤ
Ȉ Š‡’”‘…‡†—”‡–‘ϐ‹Ž‡ƒƒ’’Ž‹…ƒ–‹‘„‡ˆ‘”‡–Š‡ƒ’’‡ŽŽƒ–‡ƒ—–Š‘”‹–›Ǥ
Ȉ The provisions related to offence and penalties

Ȃ

‡••‘ͳͳȏ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ‰Žƒ…‡Ȑ
Chapter 11 contains the Constitutional powers of taxation and an overview of indirect taxes in india along with
pre GST Tax structure and its shortcomings. It also lays an overview of administration of indirect taxation in
India and the existing tax structure.
Erstwhile Indirect taxes consisted of various laws at Central and State level including VAT, Excise, Service tax
etc. which had some challenges that were required to be addressed like multiplicity of taxes and their cascading
effects.
Goods & Services Tax (GST) brought a single tax regime which got levied on supply of goods or services or both
thereby overcoming the gaps of previous Indirect Tax Laws. Various Constitutional amendments have been
made to enable Centre and States to levy GST simultaneously and new articles got inserted.
‡••‘ͳʹȏƒ•‹…•‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒšȐ
The chapter covers basics of GST and GST models including CGST / IGST / SGST / UTGST, supply which is the
taxable event under GST. It is to be noted that supply can be of two types i.e., Composite and Mixed Supply. In a
Composite supply, the goods are naturally bundled. The chapter contains the levy and collection of CGST and
IGST under the GST law and broad rates prescribed therein.
Composition Scheme is a scheme wherein GST is not collected from the recipients / customers subject to a
prescribed threshold turnover. In a composition levy, the supplier cannot himself take Input Tax Credit. Under
Reverse Charge, the recipient pays the GST on the supply on behalf of the supplier. Exemptions under GST may
be by General or by Special Order.
‡••‘ͳ͵ȏ‘…‡’–‘ˆ‹‡ǡƒŽ—‡ƬŽƒ…‡‘ˆƒšƒ„Ž‡—’’Ž›Ȑ
The chapter comprises of basic concepts of Time and Value of Taxable Supply. Taxable event is the point which
gives rise to taxability and the point of levy is determined by Time of Supply and thus Value of supply determines
value on which GST is payable. Valuation includes determining the value on which GST is payable by following
the Valuation rules and principles, contained in the GST law.
Basic concepts of Place of Taxable Supply include intra-State and inter-State Supply as well as determining the
place of supply under various situations. When the location of supplier and the place of supply are within the
same state, it is an intra-State Supply, and if these are in different states, then it is inter-State supply.
‡••‘ͳͶȏ’—–ƒš”‡†‹–Ƭ‘’—–ƒ–‹‘‘ˆ
‹ƒ„‹Ž‹–›Ȃ˜‡”˜‹‡™Ȑ
Integrated GST, Central GST, State GST or Union Territory GST paid on inward supply of inputs, capital goods and
services are called input taxes and its credit is Input Tax Credit (ITC). Company which distributes the Input Tax
Credit to various units on the basis of their previous year turnover is called Input Service Distributor. There is
no offset of ITC available between the CGST and the SGST.
GST is a consumption based tax levied on the basis of the “Destination principle.” It is an inclusive tax regime
covering both goods and services, to be collected on value-added at each stage of the supply chain.

š˜
 ‡••‘ͳͷȏ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
Ȑ
Procedural Compliances include the terms for eligibility of compulsory and voluntary registration and the
persons exempt from registration and procedure thereby. The Chapter explains the concept of tax invoices,
debit & Credit Note including cases where delivery Challan or Bill of Supply is needed instead.
The Act prescribes the accounts and records that an assessee should maintain. Electronic way Bills have been
introduced under the GST law for movement of goods. Under GST, various monthly, quarterly and annual returns
ƒ”‡ϐ‹Ž‡†Ǥƒ›‡–…ƒ„‡ƒ†‡˜‹ƒ ǡ
ǡ‡–„ƒ‹‰ǡ†‡„‹–Ȁ…”‡†‹–…ƒ”†ǤŠ‡Žƒ™’”‡•…”‹„‡•–™‘–›’‡•‘ˆ
audit under GST - General and Special. Refund Procedures are contained in the given Chapter.
‡••‘ͳ͸ȏƒ•‹…‘˜‡”˜‹‡™‘–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡ƒšȋ
Ȍǡ‹‘‡””‹–‘”›
‘‘†•ƒ†
‡”˜‹…‡ƒšȋ
Ȍǡƒ†
‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȑ
The President of india gave assent to the following four Acts, related to GST:
Ȉ Central Goods & Services Tax Act, 2017
Ȉ Integrated Goods & Services Tax Act, 2017
Ȉ Union Territory Goods & Services Tax Act, 2017
Ȉ Goods & Services Tax (Compensation to States) Act, 2017
Apart from these, every State has its own State GST Act. Delhi and Puducherry are two union territories but
UTGST Act, governing GST for union territories shall not be applicable there as they have their own State
legislature and Government. State GST would be applicable in their case.
IGST Act, 2017 governs integrated Goods & Services Tax, which is levied and collected by the Centre on inter-
State supply of goods and services including imports into India and supplies made outside India along with
supplies to / from SEZs.
The GST (Compensation to States) Act, 2017 ascertains the amount of compensation that shall be payable by
–Š‡
‘˜‡”‡––‘•–ƒ–‡•†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•†—‡–‘–Š‡”‡˜‡—‡Ž‘••‘™‹‰–‘Ž‡˜›‘ˆ
Goods and Services Tax. The Act provides for calculation and ascertainment of base year, projected growth rate,
compensation to be paid etc.
‡••‘ͳ͹ȏ˜‡”˜‹‡™‘ˆ—•–‘•…–Ȑ
With the implementation of GST law, the Basic Customs duty is still levied on imports with other additional
duties being subsumed under GST.
The basic and overview of Customs Act is contained in Chapter 17 which consists of provisions for levy and
…‘ŽŽ‡…–‹‘‘ˆ…—•–‘•†—–‹‡•ƒ†‹–•–›’‡•ǡ…Žƒ••‹ϐ‹…ƒ–‹‘ƒ†˜ƒŽ—ƒ–‹‘‘ˆ‹’‘”–ƒ†‡š’‘”–‰‘‘†•ƒŽ‘‰™‹–Š
‡š‡’–‹‘•ǡƒ†‹‹•–”ƒ–‹‘‘ˆ—•–‘•ƒ™‹…Ž—†‹‰ˆϐ‹…‡”•—†‡”–Š‡ƒ™ǤƒŽ—ƒ–‹‘—Ž‡•ƒ”‡‡š’Žƒ‹‡†Ǥ

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The Chapter also covers of import and export Procedures, provisions for transportation and Warehousing and
—–›”ƒ™„ƒ…ǤŠ‡Šƒ’–‡”‡š’Žƒ‹–Š‡…‘†‹–‹‘•ˆ‘”‘ϐ‹•…ƒ–‹‘‘ˆ
‘‘†•ƒ†‘˜‡›ƒ…‡•ƒ†’”‘…‡†—”‡•
for refund and demand as well as recovery.

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ͶȂ

DIRECT TAX

READINGS
1. Mahendra B. Gabhawala : Direct Tax Ready Reckoner with Tax Planning
2. Bharat’s law House : Income Tax Act
3. Bharat’s law House : Income Tax Rules
4. Taxmann’s : Income Tax Act
5. Taxmann’s : Income Tax Rules
6. Dr. Vinod K. Singhania : Direct taxes law and Practice
& Dr. Kapil Singhania
7. Dr. Girish Ahuja & : Direct Taxes Ready Reckoner with Tax Planning
Dr. Ravi Gupta

INDIRECT TAX

READINGS

1. Dr. Sanjiv agarwal : Goods & Services Tax, laws, Concepts and impact analysis, Bloomsbury
& Sanjeev Malhotra
2. V.S. datey : GST ready reckoner, taxmann
3. Dr. Sanjiv agarwal : A Complete Guide to Goods & Services Tax ready reckoner in Q & A
& Sanjeev Malhotra Format, Bloomsbury
4. Dr. yogendra Bangur : Comprehensive Guide to Tax Laws, Aadhya Prakashan
5. Dr. Sanjiv agarwal : Compendium of Judicial Pronouncements, Bloomsbury
& Sanjeev Malhotra
6. R. K. Jain : Customs law Manual, Centax

š˜‹‹‹
 ARRANGEMENT OF STUDY LESSONS
‘†—Ž‡Ǧͳƒ’‡”Ͷ
TAX LAWS

ǣ

ŽǤ‘Ǥ ‡••‘‹–Ž‡

1. Direct Taxes – At a Glance

2. Basic Concept of Income Tax

3. Incomes which do not form part of Total Income

4. Computation of Income under various Heads

5. Clubbing provisions and Set off and / or Carry forward of losses

6. Deductions from Gross Total Income Rebate and Relief

7. Computation of Total Income and Tax Liability of various Entities

ͺǤ Žƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš‹…‹†‡…‡‘‘’ƒ‹‡•

9. Procedural Compliance

10. Assessment, Appeals & Revision

ǣ

11. Concept of Indirect Taxes at a Glance

12. Basics of Goods and Services Tax ‘GST’

13. Concept of Time, Value & Place of Taxable Supply

14. Input tax Credit & Computation of GST liability – Overview

15. Procedural Compliance under GST

16. Basic overview on Integrated Goods and Service Tax ȍ

Ȏ, Union Territory Goods and Services Tax
ȍ
), and GST Compensation to States

17. Overview of Customs Act

š‹š
 CONTENTS
ȋȌ

LESSON 1
Ȃ


Taxes - An Introduction 2
‡›‡ϐ‹‹–‹‘• ͵
Characteristics of Taxes 3
Canons of Taxation 4
Objectives of Taxation 6
Direct v/s Indirect Taxes 7
Merits of Direct Tax 8
Demerits of Direct Taxes 8
Merits of Indirect Taxes 9
Demerits of Indirect Taxes 9
Background of Taxation System in India 9
Taxation in India during Ancient Time 9
Establishment of Income Tax in Modern India 10
Changes in Administrative set up since the inception of the Department 11
Tax Structure in India 17
Administration 18
Vital Statistics and Layout 19
LESSON ROUNDUP 22
TEST YOURSELF 22
LIST OF FURTHER READINGS 23
OTHER REFERENCES 23

ʹ
 

Regulatory Framework 25
Introduction 27
An Overview of Finance Bill 27
Heads of Income [Section 14] 29
Important Concepts 29
Person [Section 2(31)] 29
šš
Assessee [Section 2(7)] 31
Assessment Year [Section 2(9)] 32
Previous Year [Section 3] 33
India [Section 2(25A)] 33
Maximum Marginal rate and Average Rate of Tax 33
Income [Section 2(24)] 34
Total Income [Section 2(45)] 35
Capital and Revenue Receipts 36
Charge of Income Tax [Section 4] 39
Residential Status [Section 6] 40
Test of Residence for Individuals 41
Tests of Residence for HUF 46
Test of Residence for Companies 48
Guiding Principles for Determination of Place of Effective Management (POEM) of a Company 49
Test of Residence for Firm and AOP/BOI 53
Meaning and Scope of Total Income [Section 5] 53
Income Received or deemed to be received in India 55
Income Accrue or Arise in India 56
Income deemed to Accrue or Arise in India [Section 9] 57
Tax Incidence VIS-A-VIS Residential Status 62
Computation of Taxable Income and Tax Liability of an Assessee 66
Tax Rates for FY 2021-22 i.e. AY 2022-23 67
Special Tax Regime for Individual and HUFs [Section 115BAC) 70
Special Tax Regime applicable to a Co-operative societies [Section 115BAD] 72
Case Laws 74
LESSON ROUNDUP 75
TEST YOURSELF 77
LIST OF FURTHER READINGS 79
OTHER REFERENCES 79

͵
INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

Regulatory Framework 81
Background 82
Incomes which do not Form Part of Total Income 85
Agricultural Income [Section 10(1)] 85
Income from Manufacture of Rubber [Rule 7A] 87
šš‹
Income from the Manufacture of Coffee [Rule 7B] 88
Income from growing and Manufacturing of Tea [Rule 8] 88
Amount received by a member of the HUF from the Income of the HUF [Section 10(2)] 90
Šƒ”‡‘ˆ’”‘ϐ‹–”‡…‡‹˜‡†„›ƒ’ƒ”–‡”ˆ”‘–Š‡ ‹”ȏ‡…–‹‘ͳͲȋʹȌȐ ͻͲ
Interest to Non-Residents [Section 10(4)] 90
–‡”‡•–‘‘–‹ϐ‹‡†ƒ˜‹‰•‡”–‹ϐ‹…ƒ–‡•ȏ‡…–‹‘ͳͲȋͶȌȐ ͻͳ
Leave Travel Concession [Section 10(5)] 91
Remuneration received by Individuals, who are not citizens of India [Section 10(6)] 93
‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›•’‡…‹ϐ‹‡††‹’Ž‘ƒ–•ƒ†–Š‡‹”•–ƒˆˆȏ‡…–‹‘ͳͲȋ͸Ȍȋ‹‹ȌȐ ͻ͵
Salary of a foreign employee and non-resident member of crew [Section 10(6)(vi), (viii)] 93
Remuneration of a Foreign Trainee [Section 10(6)(xi)] 93
Tax paid on behalf of foreign company deriving income by way of royalty or fees for technical services 93
[Section 10(6A)]
Tax paid on behalf of foreign company or non-resident in respect of other income [Section 10(6B)] 93
Tax paid on behalf of foreign Government or foreign enterprise deriving income by way of lease of 93
aircraft or aircraft engine [Section 10(6BB)]
‡…Š‹…ƒŽˆ‡‡•”‡…‡‹˜‡†„›ƒ‘–‹ϐ‹‡† ‘”‡‹‰‘’ƒ›ȏ‡…–‹‘ͳͲȋ͸ȌȐ ͻͶ
Royalty or fees for technical services payment by NTRO to a Non Resident [Section 10 (6D)] 94
Allowance/perquisites to Government employee outside India [Section 10(7)] 94
Income of foreign Government employee under co-operative technical assistance programme 94
[Section 10(8)]
Remuneration or fees received by a non-resident consultant/its foreign employees [Section 10(8A), (8B)] 94
Income of a family member of an employee serving under co-operative technical assistance 94
programme [Section 10(9)]
Retrenchment Compensation [Section 10(10B)] 94
Compensation for Bhopal Gas Leak Disaster [Section 10(10BB)] 94
Compensation on account of any Disaster [Section 10(10BC)] 95
Payment at the time of voluntary Retirement [Section 10(10C)] 95
Tax on perquisites paid by the Employer [Section 10(10CC)] 96
Amount paid on life insurance Policy [Section 10(10D)] 96
Payment from Provident Fund [Section 10 (11)] 98
Payment from account opened in accordance with the Sukanya Samriddhi Account Rules, 2014 98
[Section 10(11A)]
Payment of Accumulated balance in a recognized Provident Fund [Section 10(12)] 98
Payment from the National Pension System Trust to an Employee [Section 10(12A)] 98
Partial withdrawal from NPS [Section 10(12B)] 99
ƒ›‡–ˆ”‘ƒ’’”‘˜‡†•—’‡”ƒ—ƒ–‹‘ˆ—†‹•’‡…‹ϐ‹‡†…‹”…—•–ƒ…‡•ƒ†•—„Œ‡…––‘…‡”–ƒ‹Ž‹‹–• ͻͻ
[Section 10(13)]

šš‹‹
Allowances for meeting Business Expenditure [Section 10(14)] 99
Interest Incomes [Section 10(15)] 99
Educational Scholarship [Section 10(16)] 99
Daily allowance to a Member of Parliament [Section 10(17)] 100
Awards [Section 10(17A)] 100
Pension to Gallantry Award Winner [Section 10(18)] 100
Family pension received by the family members of armed forces [Section 10(19)] 101
Income of a News Agency [Section 10(22B)] 101
Income of a Professional Association [Section 10(23A)] 101
Income received on behalf of Regimental Fund [Section 10(23AA)] 102
Income of a fund established for welfare of Employees [Section 10(23AAA)] 102
Income of Pension Fund [Section 10(23AAB)] 102
Income from khadi or village industry [Section 10(23B)] 102
Income from fund or trust or institution or university or other educational institution or hospital or 102
other medical institution [Section 10(23C)
Income of Mutual Fund [Section 10(23D)] 103
…‘‡‘ˆ‘–‹ϐ‹‡†˜‡•–‘””‘–‡…–‹‘ —†ȏ‡…–‹‘ͳͲȋʹ͵ȌȐ ͳͲ͵
…‘‡‘ˆ–Š‡‘–‹ϐ‹‡†‹˜‡•–‘”’”‘–‡…–‹‘ˆ—†•‡–Ǧ—’„›‘‘†‹–›š…Šƒ‰‡ȏ‡…–‹‘ͳͲȋʹ͵ȌȐ ͳͲ͵
Income of Investor Protection Fund set by a Depository [Section 10(23ED)] 103
Income of a venture capital fund or a venture capital company from investment in a venture capital 103
undertaking [Section 10(23FB)]
Income of an Investment Fund [Section 10(23FBA)] 103
Exemption in respect of certain income of wholly owned subsidiary of Abu Dhabi Investment 104
Authority and Sovereign Wealth Fund [Section 10(23FE)]
Capital Gains Tax on account of transfer of shares of an Indian Company on account of relocation 104
[Section 10(23FF)]
Income of a registered Trade Union [Section 10(24)] 104
Income of Provident Fund [Section 10(25)] 105
Income of the Employees’ State Insurance Fund [Section 10(25A)] 105
Income of a member of a Scheduled Tribe [Section 10(26)] 105
’‡…‹ϐ‹‡†‹…‘‡‘ˆƒ‹‹‡•‡†‹˜‹†—ƒŽȏ‡…–‹‘ͳͲȋʹ͸ȌȐ ͳͲͷ
Income of Minor [Section 10(32)] 105
Income on Buyback of Shares [Section 10(34A)] 105
Income from International Sporting Event [Section 10(39)] 106

šš‹‹‹
Income received as grant by a Subsidiary Company [Section 10(40)] 106
Income from transfer of asset of an undertaking engaged in the business of generation, transmission 106
or distribution of power [Section 10(41)]
Income of a body or authority set up by two Countries [Section 10(42)] 106
Reverse Mortgage [Section 10(43)] 106
New Pension System Trust [Section 10(44)] 107
Exemption of Allowance or perquisite to chairman/member of UPSC [Section 10(45)] 107
š‡’–‹‘‘ˆǮ’‡…‹ϐ‹‡†…‘‡ǯ‘ˆ…‡”–ƒ‹‘†‹‡•‘”—–Š‘”‹–‹‡•ȏ‡…–‹‘ͳͲȋͶ͸ȌȐ ͳͲ͹
š‡’–‹‘‘ˆ…‘‡‘ˆ‘–‹ϐ‹‡†Ǯˆ”ƒ•–”—…–—”‡‡„– —†ǯȏ‡…–‹‘ͳͲȋͶ͹ȌȐ ͳͲ͹
Exemption of Income of a foreign company from sale of Crude Oil in India [Section 10(48)] 107
Exemption of income of foreign company from sale of leftover stock of crude oil on termination of 107
agreement or arrangement [Section 10(48B)]
Income accruing or arising to Indian Strategic Petroleum Reserves Limited (ISPRL) [Section 10(48C)] 107
Exemption of income of National Financial Holdings Company [Section 10(49)] 108
Other Important Exemptions 108
Summary Chart 112
LESSON ROUNDUP 113
TEST YOURSELF 113
LIST OF FURTHER READINGS 115
OTHER REFERENCES 115

LESSON 4
COMPUTATION OF INCOME UNDER VARIOUS HEADS
ȃDzdz

Regulatory Framework 117

Introduction 118
Impact of Section 115BAC under the head Salary 119
Basis of Charge 121
Salary [Section 17(1)] 121
Allowances 121
Fully Taxable Allowances 122
Allowances not fully taxable 123
House Rent Allowance [Section 10(13A)] 123
Special Allowances [Section 10(14)] 124
‡–‹”‡‡–‡‡ϐ‹–• ͳʹ͸
Annuity / Pension 126
Gratuity [Section 10(10)] 127

šš‹˜
Leave Encashment [Section 10(10AA)] 128
”‘ϐ‹–•‹Ž‹‡—‘ˆƒŽƒ”›ȏ‡…–‹‘ͳ͹ȋ͵ȌȐ ͳ͵Ͳ
Perquisites [Section 17(2)] 131
Motor Cars – Perquisites Valuation 134
Tax-free Perquisites 137
Provident Funds - Treatment of Contributions to and Money Received from the Provident Fund 138
Relief when salary is paid in Arrears or Advance (Section 89) 140
Deductions from Salary 141
Computation of Salary 141
Case Law 152
LESSON ROUNDUP 153
TEST YOURSELF 155
LIST OF FURTHER READINGS 156
OTHER REFERENCES 156

LESSON 4
ȃ

Regulatory Framework 157

Basis of Charge [Section 22] 158
Impact of Section 115BAC under the head House Property 158
Determination of Annual Value 159
Where the property is let out for the whole year [Section 23(1)] 160
Where let out property is vacant for part of the year [Section 23(1)] 162
Where property is self-occupied / unoccupied [Section 23(2)] 164
Where the property is partly let out and partly self-occupied [Section 23(3)] 165
Deemed to be let-out Property [Section 23(4)] 166
Notional income from house property held as Stock in Trade [Section 23(5)] 166
Deductions from Net Annual Value (Section 24) 167
Treatment of Unrealised Rent 168
Summary of computation of Income from House Property 168
Deemed Ownership [Section 27] 170
House Property Incomes – Exempted From Tax 171
Case Law 178
LESSON ROUNDUP 180
TEST YOURSELF 181
LIST OF FURTHER READINGS 182
OTHER REFERENCES 182
šš˜
 LESSON 4
ȃ 
 Ȁ 

Regulatory Framework 184

Business’ or ‘Profession’ 185
Income Chargeable to tax under the head Business or Profession (Section 28) 185
Speculation Business 186
Method of Accounting [Section 145] 188
Method of Accounting in Certain Cases [Section 145A] 188
Taxability of Certain Income [Section 145B] 188
Income Earned in Cash or in Kind 189
‘’—–ƒ–‹‘‘ˆ”‘ϐ‹–•‘ˆ—•‹‡••‘””‘ˆ‡••‹‘  ͳͻͲ
‘’—–ƒ–‹‘‘ˆ…‘‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†
ƒ‹•ˆ”‘—•‹‡••‘””‘ˆ‡••‹‘dz  ͳͻͳ
Admissible Deductions 191
Rent, Rates, Repairs and Insurance for Buildings (Section 30) 191
Repairs and Insurance for Plant & Machinery, Furniture (Section 31) 192
Depreciation (Section 32) 192
Block of Assets 194
Actual Cost [Section 43(1)] 195
Written Down Value (WDV) [Section 43(6)] 196
Unabsorbed Depreciation 197
Depreciation on Straight line basis 197
Terminal Depreciation 197
Balancing Charge [Section 41(2)] 197
Additional Depreciation [Section 32(1)] 197
Calculation of written down value of a Block of Asset [Section 43(6)] 198
˜‡•–‡–‹‡™Žƒ–‘”ƒ…Š‹‡”›‹‘–‹ϐ‹‡†ƒ…™ƒ”†”‡ƒ•‹‡”–ƒ‹–ƒ–‡•ȋ‡…–‹‘͵ʹȌ  ʹͲͲ
Tea/Coffee/Rubber Development Account (Section 33AB) 200
Site Restoration Fund [Section 33ABA] 202
…‹‡–‹ϐ‹…‡•‡ƒ”…Šȋ‡…–‹‘͵ͷȌ  ʹͲ͵
Expenditure on Telecom Licence (Section 35ABB) 206
š’‡†‹–—”‡‘ˆƒ’‹–ƒŽƒ–—”‡‹…—””‡†‹”‡•’‡…–‘ˆ’‡…‹ϐ‹‡†—•‹‡••ȋ‡…–‹‘͵ͷȌ  ʹͲ͹
Expenditure on Agricultural Extension Project (Section 35CCC) 209
Expenditure on Skill Development Project (Section 35CCD) 209
Amortization of Preliminary Expenses (Section 35D) 209
Amortization of Expenditure in the case of Voluntary Retirement Scheme (Section 35DDA) 211
Other Deductions [Section 36] 211
šš˜‹
Other Expenses (Section 37) 212
Expenses Disallowed (Section 40) 215
Expenses Restricted 218
Disallowance of Unpaid Statutory Liability (Section 43B) 220
Changes in Rate of Exchange (Section 43A) 221
‡‡‡†”‘ϐ‹–• ʹʹʹ
Transfer of Immovable Property [Section 43CA] 223
Special Provision in Case of Income of Public Financial Institutions (Section 43D) 224
Special Provisions Related to Insurance Business (Section 44) 224
Compulsory Maintenance of Books of Account (Section 44AA) 225
Compulsory Audit of Books of Account (Section 44AB) 225
’‡…‹ƒŽ”‘˜‹•‹‘ˆ‘”‘’—–‹‰”‘ϐ‹–•ƒ†
ƒ‹•‘ˆ—•‹‡••‘”‡•—’–‹˜‡ƒ•‹•ȋ‡…–‹‘ͶͶȌ ʹʹ͸
Presumptive Taxation for Professionals [Section 44ADA] 227
’‡…‹ƒŽ”‘˜‹•‹‘•ˆ‘”‘’—–‹‰”‘ϐ‹–•ƒ†
ƒ‹•‘ˆ—•‹‡••‘ˆŽ›‹‰ǡ‹”‹‰‘”‡ƒ•‹‰
‘‘†• ʹʹͺ
Carriages [Section 44AE]
Questions and Answers 228
Annexure 233
Case Law 240
LESSON ROUNDUP 243
TEST YOURSELF 244
LIST OF FURTHER READINGS 244
OTHER REFERENCES 244

LESSON 4
ȃ 


Regulatory Framework 246

Capital Gains 247
Chargeability 247
Capital Asset [Section 2(14)] 248
Impact of Section 115BAC under the head Capital Gains [Amendment vide Finance Act, 2020] 249
Short-Term & Long-Term Assets 250
Transfer [Section 2(47)] 251
Year of Chargeability as “Capital Gains” 253
Capital Gains on Distribution of Assets by Companies in Liquidation [Section 46] 256
ƒ’‹–ƒŽ
ƒ‹•‘—›„ƒ…‘ˆŠƒ”‡•‘”’‡…‹ϐ‹‡†‡…—”‹–‹‡•ȏ‡…–‹‘Ͷ͸Ȑ ʹͷ͸
Mode of Computation 256
Cost of Acquisition 258
Cost of Improvement 260
•…‡”–ƒ‹‡–‘ˆ‘•–‹’‡…‹ϐ‹‡†‹”…—•–ƒ…‡•ȏ‡…–‹‘ͶͻȐ ʹ͸ͳ
Capital Gains for Depreciable Assets (Section 50) 264
šš˜‹‹
Capital Gains in respect of Slump Sale (Section 50B) 264
Computation of Capital Gain in Real Estate Transaction [Section 50C] 266
Capital Gain on Transfer of Unlisted Shares in a Company [Section 50CA] 268
Fair Market Value to be Full Value of Consideration in Certain Cases (Section 50D) 268
‡ˆ‡”‡…‡–‘ƒŽ—ƒ–‹‘ˆϐ‹…‡”ȋ‡…–‹‘ͷͷȌ ʹ͸ͺ
Advance Money Received [Section 51] 269
Exemption of Capital Gains 270
”‘ϐ‹–‘ƒŽ‡‘ˆ”‘’‡”–›—•‡†ˆ‘”‡•‹†‡…‡ȏ‡…–‹‘ͷͶȐ ʹ͹Ͳ
Transfer of Land used for Agricultural Purposes [Section 54B] 271
Compulsory Acquisition of Lands and Buildings [Section 54D] 272
‘–ƒš‘Ž‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹•‹ˆ‹˜‡•–‡–•ƒ†‡‹’‡…‹ϐ‹‡†‘†•ȏ‡…–‹‘ͷͶȐ ʹ͹ʹ
Practical Questions (MCQs) 273
Tax Incentives for Start-ups [Section 54EE] 273
Capital gain on the transfer of certain capital assets not to be charged in case of investment in 274
Residential House [Section 54F]
Exemption of capital gain on transfer of assets of shifting of industrial undertaking from urban 274
area to a Special Economic Zone [Section 54GA]
Capital Gain on Transfer of Residential Property (a house or a plot of land) [Section 54GB] 275
Extension of Time for Acquiring New Asset or Depositing or Investing Amount of Capital Gain 276
(Section 54H)
ƒš‘‘‰Ǧ‡”ƒ’‹–ƒŽ
ƒ‹•‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‡…—”‹–‹‡•ȏ‡…–‹‘ͳͳʹȐ ʹ͹͸
Tax Rates 277
Case Law 285
LESSON ROUNDUP 287
TEST YOURSELF 287
LIST OF FURTHER READINGS 288
OTHER REFERENCES 289

LESSON 4
ȃ 

Regulatory Framework 291

Basis of Charge of Income From Other Sources [Section 56] 292
Impact of Section 115BAC under the head Income from Other Sources 296
Casual Income [Section 56(2)(IB)] 296
Income from Family Pension 297
Taxation of Dividends 297
Deductions Allowable in Computing Income from Other Sources 300
Amounts Not Deductible [Section 58] 301
šš˜‹‹‹
Deemed Income [Section 59] 302
Summary of Computation Of Income Under The Head “Income From Other Sources” 302
Case Law 305
LESSON ROUNDUP 306
TEST YOURSELF 307
LIST OF FURTHER READINGS 308
OTHER REFERENCES 308

ͷ

 Ȁ  

Regulatory Framework 310

Clubbing of Income 311
Transfer of Income [Section 60] 311
Revocable Transfer of Assets [Section 61] 312
Income of Spouse 313
Income from Assets transferred to Son’s Wife [Section 64(1)(vi)] 314
”ƒ•ˆ‡”ˆ‘”‡†‹ƒ–‡‘”‡ˆ‡””‡†‡‡ϐ‹–‘ˆ‘ǯ•‹ˆ‡ȏ‡…–‹‘͸ͶȋͳȌȋ˜‹‹‹ȌȐ ͵ͳͷ
Income to Spouse through a Third Person [Section 64(1)(vii)] 315
Clubbing of Income of Minor Child [Section 64(1A)] 315
Income from the Converted Property [Section 64(2)] 316
Recovery of Tax 318
Set-Off and Carry-Forward Of Losses 320
Set-Off of Losses from One Source against Income from another Source under the same Head of 320
Income [Section 70]
Income losses Intra-head Set off 321
Set-Off of Loss from One Head against Income from another Head [Section 71] 322
Carry-Forward of Losses 323
(A) Loss in Non-Speculation Business [Section 72] 324
(B) Loss in Speculation Business [Section 73] 325
ȋȌƒ””› ‘”™ƒ”†ƒ†‡–ˆˆ‘ˆ‘••‡•„›’‡…‹ϐ‹‡†—•‹‡••ȏ‡…–‹‘͹͵Ȑ ͵ʹͷ
(D) Set-Off and Carry Forward of Capital Losses [Section 74] 326
(E) Loss on Maintenance of Race Horses [Section 74A] 326
(F) Loss under the Head “Income From Other Sources” 326
Carry Forward and Set-Off of accumulated Business Loss and Unabsorbed Depreciation in certain 326
cases of Amalgamation or Demerger Etc. [Section 72A]
Carry Forward and Set Off of Accumulated Loss and Unabsorbed Depreciation Allowance in scheme 329
of Amalgamation of Banking Company in Certain Cases [Section 72AA]
Treatment of Carry-Forward of Losses of Certain Assessees 329
šš‹š
Submission of Return For Loss [Section 80] 331
Summary of provisions regarding Carry Forward and Set-Off of Losses 331
LESSON ROUND UP 332
TEST YOURSELF 334
LIST OF FURTHER READINGS 336
OTHER REFERENCES 336

͸
 
ǡ

Introduction 338
Impact of Section 115 BAC/115 BAD on Deductions 338
Deductions 343
Deduction in respect of Investments [Section 80C] 343
Deduction for Contribution to Pension Fund [Section 80CCC] 345
Deduction in respect of Contribution to Pension Scheme of Central Government [Section 80CCD] 345
Limit on Deductions under sections 80C, 80CCC and 80CCD [Section 80CCE] 346
Deduction in respect of Medical Insurance Premia [Section 80D] 346
Deduction in respect of maintenance including medical treatment of a dependent who is a person 347
with disability [Section 80DD]
‡†—…–‹‘‹”‡•’‡…–‘ˆ‡†‹…ƒŽ–”‡ƒ–‡–‘ˆ…‡”–ƒ‹•’‡…‹ϐ‹‡††‹•‡ƒ•‡‘”ƒ‹Ž‡–ȏ‡…–‹‘ͺͲȐ ͵Ͷͺ
Deduction in respect of repayment of loan taken for Higher Education [Section 80E] 349
Deduction in respect of interest on loan taken for Residential House Property [section 80EE] 351
Tax Incentives for Affordable Housing [Section 80EEA] 352
Tax Incentives for Electric Vehicles [Section 80EEB] 352
Deduction in respect of donations to certain Funds, Charitable Institutions, etc. [Section 80G] 353
Deduction in respect of Rent Paid [Section 80GG] 357
‡†—…–‹‘‹”‡•’‡…–‘ˆ‡”–ƒ‹‘ƒ–‹‘•ˆ‘”…‹‡–‹ϐ‹…‡•‡ƒ”…Š‘”—”ƒŽ‡˜‡Ž‘’‡–ȏ‡…–‹‘ͺͲ

Ȑ ͵ͷͺ
Deduction in respect of contributions given by Companies to Political Parties or an Electoral Trust 359
[Section 80GGB]
Deduction in respect of contributions given by any person to Political Parties or an Electoral Trust 359
[Section 80GGC]
‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‹†—•–”‹ƒŽ—†‡”–ƒ‹‰•‘”‡–‡”’”‹•‡‡‰ƒ‰‡†‹ ͵ͷͻ
Infrastructure Development [Section 80-IA]
‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–ƒ†‰ƒ‹•„›ƒ—†‡”–ƒ‹‰‘”ƒ‡–‡”’”‹•‡‡‰ƒ‰‡†‹†‡˜‡Ž‘’‡– ͵͸ʹ
of Special Economic Zone [Section 80-IAB]
‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘…‡”–ƒ‹‹†—•–”‹ƒŽ—†‡”–ƒ‹‰•‘–Š‡”–Šƒ ͵͸ʹ
Infrastructure Development Undertakings [Section 80-IB]
Deduction in respect of eligible Start-Up [Section 80IAC] 369

ššš
‡†—…–‹‘•‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‘—•‹‰”‘Œ‡…–•ȏ‡…–‹‘ͺͲȐ ͵͸ͻ
Special provisions in respect of certain undertakings or enterprises in certain special category States 370
[Section 80-IC]
‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘–Š‡—•‹‡••‘ˆ…‘ŽŽ‡…–‹‰ƒ†’”‘…‡••‹‰ ͵͹ʹ
Bio-Degradable Waste [Section 80-JJA]
Deduction in respect of Employment of New Workmen [Section 80-JJAA] 372
Deduction in respect of certain incomes of Offshore Banking Units [Section 80LA] 373
Deduction in respect of certain Inter-Corporate Dividends [Section 80M] 374
Deduction in respect of Income of Co-Operative Societies [Section 80P] 374
Deduction in respect of certain income of Producer Companies [Section 80PA] 376
Deduction in respect of Royalty Income, etc., of authors of certain books other than Text Books 376
[Section 80QQB]
Deduction in respect of Royalty on Patents [Section 80RRB] 377
Deduction in respect of interest on deposits in Savings Account [Section 80TTA ] 378
Deduction in respect of interest on deposits in case of Senior Citizens (Section 80TTB) 378
Deduction in case of a Person with Disability [Section 80U] 378
Rebate and Relief 379
LESSON ROUND UP 383
TEST YOURSELF 385
LIST OF FURTHER READINGS 387
OTHER REFERENCES 387

͹
  

Introduction 390
New Taxation System for Individual and HUF [Section 115BAC] 392
Taxation of Individuals 394
Taxation of Hindu Undivided Families 403
Taxation of Firms 412
Assessment as a Firm [Section 184] 412
Change in constitution of a Firm [Section 187] 414
Losses of Registered Firms [Section 75] 414
ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••‡•‹…ƒ•‡‘ˆ…Šƒ‰‡‹…‘•–‹–—–‹‘‘ˆϐ‹”‘”‘—……‡••‹‘ ͶͳͶ
[Section 78(1)]
Assessment of Partners 414
Succession of One Firm by another Firm [Section 188] 415
Joint and several liability of partners for tax payable by Firm [Section 188A] 415
Firm Dissolved or Business Discontinued [Section 189] 415

ššš‹
Alternate Minimum Tax (AMT) [Section 115JC] 416
Taxation of Association of Persons /Body of Individuals 427
Method of Computing Share of a Member of Association of Persons / Body of individuals [Section 67A] 429
Taxation of share of Income of a Member of AOP/BOI 429
Assessment in case of Dissolution of an Association of Persons [Section 177] 430
Taxation of Co-Operative Societies 430
Meaning [Section 2(10)] 430
Computation of Income of Co-operative Societies 430
Rates of Income-tax on Co-operative Society 431
Deduction in respect of income of Co-Operative Societies [Section 80P] 431
Assessment of Co-operative Societies 433
New Taxation system for Resident Co-Operative Societies [Section 115BAD] 435
Tax Exemptions to Political Parties (Section 13A) 438
Electoral Trust 438
Voluntary contributions received by an Electoral Trust (Section 13B) 438
Tax Exemptions for Charitable Trusts and Institutions 439
Capital Gains [Section 11(1A)] 441
Accumulations of Income [Section 11(2)] 442
Forms and Modes of Investment [Section 11(5)] 443
Income of trusts or institutions from contributions [Section 12] 445
Registration of Trusts [Section 12A] 445
Procedure for Registration [Section 12AA] 447
Procedure for Fresh Registration [Section 12AB] 447
LESSON ROUND UP 449
TEST YOURSELF 451
LIST OF FURTHER READINGS 452
OTHER REFERENCES 452

ͺ
CLASSIFICATION AND TAX INCIDENCE ON COMPANIES

Regulatory Framework 454

Background & Types of Companies 454
Indian Company 455
Domestic Company 455
Foreign Company 456
Tax Incidence on Companies 457
Corporate Tax Rates 458
ššš‹‹
Tax on Income of certain Manufacturing Domestic Companies [Section 115BA] 459
Tax on Income of certain Domestic Companies [Section 115BAA] 460
Tax on Income of New Manufacturing Domestic Companies [Section 115BAB] 461
Minimum Alternate Tax (MAT ) 462
MAT Credit [Section 115JAA] 472
Taxation of Dividend 476
Tƒšƒ„‹Ž‹–›‘ˆ‹˜‹†‡†‹…‘‡‘ˆƒ†‹ƒ…‘’ƒ›ˆ”‘ƒ’‡…‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ›ȏ‡…–‹‘ͳͳͷȐ Ͷ͹͹
Carbon Credit [Section 115BBG] 478
Buy-Back of Shares 478
Case Study 479
Conversion of an Indian Branch of a Foreign Company into an Indian Subsidiary Company 480
ƒš‘…‘‡‹•–”‹„—–‡†„›’‡…‹ϐ‹‡†‘’ƒ›”—–—ƒŽ —† ͶͺͲ
Equalisation Levy 481
Taxation aspects related To Conversion of Company Into an LLP 483
Tax Liability of Companies in the Event of Liquidation 485
Taxation of Share Premium 486
Taxation Aspects of Amalgamations, Mergers and Demergers 488
Business Losses & Unabsorbed Depreciation 488
Capital Gains 489
Preliminary Expenses 489
ƒ’‹–ƒŽš’‡†‹–—”‡‘…‹‡–‹ϐ‹…‡•‡ƒ”…ŠƬ‘™ǦŠ‘™ Ͷͺͻ
Expenditure on Amalgamation 489
LESSON ROUND UP 490
TEST YOURSELF 490
LIST OF FURTHER READINGS 492
OTHER REFERENCES 492

ͻ
PROCEDURAL COMPLIANCE

Regulatory Framework 494

Permanent Account Number [Section 139A] 496
Process to apply for PAN 497
Quoting of PAN 497
Quoting of AADHAAR NUMBER [Section 139AA] 498
Penalty for not Complying with provisions relating to PAN or ADHAAR 499
Tax Deduction Account Number (TAN) 499
Payment of Tax 500
Tax Deducted at Source (TDS) 500

ššš‹‹‹
Objectives of Tax Deducted at Source 501
Scheme of Tax Deduction at Source 501
Salary [Section 192] 502
Premature Withdrawal from Employees’ Provident Fund Scheme (EPFS) [Section 192A] 504
Interest on Securities [Section 193] 504
TDS on Dividend [Section 194] 505
Interest other than Interest on Securities [Section 194A] 505
Winnings from Lotteries or Crossword Puzzles [Section 194B] 507
Winnings from Horse Races [Section 194BB] 508
Payment to Resident Contractor or Sub-contractor [Section 194C] 508
Insurance Commission [Section 194D] 509
Payment in respect of Life Insurance policy [Section 194DA] 509
Payment to a non-resident sportsmen / sports association [Section 194E] 509
Payment in respect of Deposits under National Savings Scheme etc. [Section 194EE] 510
Commission on sale of lottery tickets [Section 194G] 510
Commission or Brokerage [Section 194H] 510
Rent [Section 194-I] 510
Payment on transfer of certain immovable property other than agricultural land [Section 194-IA] 511
TDS on payment of Rent by certain Individuals/HUF [Section 194IB] 512
TDS at on Joint Development Project [Section 194-IC] 512
Professional and Technical Fees [Section 194J] 513
Income in respect of units [Section 194K] 513
Payment of Compensation on acquisition of Capital Asset [Section 194LA] 513
Income by way of interest from Infrastructure Debt Fund [Section 194LB] 514
Income from units of a Business Trust [Section 194LBA] 514
Income by way of interest from Indian company engaged in certain Business [Section 194LC] 514
Income by way of interest on certain bonds and Government Securities [Section 194LD] 515
Payment by Individual/HUF to Contractors and Professionals [Section 194M] 515
TDS on cash withdrawal to discourage Cash Transactions [Section 194N] 515
Payments of certain sums by e- commerce operator to E- Commerce Participant [Section194-O] 516
‡†—…–‹‘‘ˆƒš‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‡‹‘”‹–‹œ‡ȏ‡…–‹‘ͳͻͶȐ ͷͳ͸
TDS on payment of certain sume for purchase of Goods [Section 194Q] 516
Payments of other sums to Non-Residents [Section 195] 517
Income payable “Net of Tax” [Section 195A] 518
Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations 518
[Section 196]
Income from units to Offshore Fund [Section 196B] 519

ššš‹˜
Income from foreign currency bonds or shares of Indian Company [Section 196C] 519
Income of Foreign Institutional Investors from Securities [Section 196D] 519
No deduction to be made in Certain Cases [Section 197A] 520
‡”–‹ϐ‹…ƒ–‡‘ˆƒš‡†—…–‡†ȏ‡…–‹‘ʹͲ͵Ȑ ͷʹͲ
Consequence in the event of Default [Section 201] 520
Tax Collection at Source (TCS) [Section 206C] 522
Time limit for Depositing of TDS 525
••—‡‘ˆ‡”–‹ϐ‹…ƒ–‡ ͷʹͷ
—‡ƒ–‡ˆ‘”••—‡‘ˆ‡”–‹ϐ‹…ƒ–‡ ͷʹͷ
••—‡‘ˆ—’Ž‹…ƒ–‡‡”–‹ϐ‹…ƒ–‡ ͷʹ͸
TDS Forms 526
TDS Return 526
Refund of TDS 527
TDS CHART FY 2021-22 “AY 2022-23” 527
E-TDS Return 536
Exemption to Non-Residents from requirement of furnishing PAN U/S 206AA 536
Advance Tax 536
Due Dates for Payment of Advance Tax 537
Payment of Advance Tax in case of Capital Gains / Casual Income /Divident Income 537
[Proviso to Section 234C]
Adjustment of Advance Tax 537
‘Ž‡‘ˆ••‡••‹‰ˆϐ‹…‡”‹”‡Žƒ–‹‘–‘†˜ƒ…‡ƒ›‡–‘ˆƒš ͷ͵ͺ
Self-Assessment Tax (SAT ) 541
Returns 542
Return of Income [(Section 139(1)] 542
Return of Loss [Section 139(3)] 545
Belated Return [Section 139(4)] 545
Return of Income of charitable trust and institutions [Section 139(4A)] 545
Return of Income of Political Party [Section 139(4B)] 545
‡–—”‘ˆ…‘‡‘ˆ’‡…‹ϐ‹‡†••‘…‹ƒ–‹‘Ȁ•–‹–—–‹‘•ȏ‡…–‹‘ͳ͵ͻȋͶȌȐ ͷͶͷ
Revised Return [Section 139(5)] 546
Defective Return [Section 139(9)] 546
Signing of Return [Section 140] 547
Scheme to facilitate submission of returns through tax return preparers [Section 139B] 548
Fee and Interest 549
Interest for belated payment of Income-Tax [Section 220(2)] 549
Interest for default in furnishing Return of Income [Section 234A] 549

ššš˜
Interest for default in payment of Advance Tax [Section 234B] 549
Interest for deferment of Advance Tax [Section 234C] 550
Fees for Delay in Furnishing Return of Income [Section 234F] 551
Collection and Recovery of Tax 551
Refunds (Section 237 to Section 245) 552
Whom to apply for Refund? 553
Who is entitled to Refund? 553
Issue of Refund 554
Adjustment of Refund 554
Interest on Refunds 554
Case Laws 555
LESSON ROUND UP 557
TEST YOURSELF 558
LIST OF FURTHER READINGS 559
OTHER REFERENCES 559

ͳͲ
ǡƬ

Regulatory Framework 562

Introduction 563
Income-tax Authorities (Appointment and Control) [Section 116 to 119A] 563
Appointment and Control of Income-tax Authorities [Section 117 & 118] 564
Instructions to Subordinate Authorities [Section 119] 564
Taxpayer Charter [Section 119A] 564
Jurisdiction of Income-tax Authorities [Section 120] 565
Central Board of Direct Taxes (CBDT) 565
Power of Commissioner of Income Tax (Appeal) 570
Assessment 571
Self Assessment [Section 140A] 571
Inquiry before Assessment [Section 142] 572
•–‹ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆƒ••‡–•„›ƒŽ—ƒ–‹‘‘ˆϐ‹…‡”ȏ‡…–‹‘ͳͶʹȐ ͷ͹͵
Faceless Inquiry and Valuation [Section 142B] 573
Summary Assessment [Section 143(1)] 573
Scrutiny (Regular) Assessment [Section 143(2) & (3)] 574
Best Judgment Assessment [Section 144] 574
E-Assessments 575
Faceless Assessments [Section 144B] 575
Income Escaping Assessment [Section 147] 580

ššš˜‹
Assessment in case of Search or Requisition [Section 153A] 582
Time limit for Completion of Assessments and Re-assessments [Section 153] 583
Appeal 584
Appeals Orders before Commissioner (Appeals) 585
Period of Limitation to Prefer an Appeal [Section 249(2)] 586
Payment of Tax before Filing Appeal [Section 249(4)] 587
”‘…‡†—”‡ˆ‘”ϐ‹Ž‹‰ƒ’’‡ƒŽȏ‡…–‹‘ʹͷͲȐ ͷͺ͹
Faceless Appeal [Section 250(6B)] 588
Powers of Commissioner (Appeals) [Section 251] 590
Appellate Tribunal [Section 252] 590
Appealable Orders [Section 253(1) and (2)] 591
Procedure for Filing Appeal [Section 253(3), (4) & (6)] 591
Order of Appellate Tribunal [Section 254] 593
Procedure of Appellate Tribunal [Section 255] 594
Appeal to High Court 594
Appeal to the Supreme Court [Section 261] 595
Revisions 596
Revision by the Commissioner of Income Tax [Sections 263 and 264] 596
Revision of orders prejudicial to the interest of Revenue [Section 263] 597
Revision of order in the interest of Assessee [Section 264] 598
Circumstances in which No Revision can be Made [Section 264(4)] 600
Remedy against the Revisional Order 600
Offences and Penalties 600
Provision for E-Penalty [Section 274(2A)] 607
Rationalisation of Penalty Provisions 607
Offences and Prosecution 608
Immunity from Penalty and Prosecution [Section 270AA] 610
Provision for Bank Guarantee [Section 281B] 610
LESSON ROUND UP 611
TEST YOURSELF 612
LIST OF FURTHER READINGS 613
OTHER REFERENCES 613

ššš˜‹‹
 ȋȌ

LESSON 11
CONCEPT OF INDIRECT TAXE S AT A GLANCE

Background 616
Constitutional Powers of Taxation 618
Goods and Services Tax Council 619
‘™‡”–‘”‡‘˜‡†‹ˆϐ‹…—Ž–‹‡• ͸ʹͲ
Indirect Taxes in India – An Overview 620
”‡
ƒš–”—…–—”‡Ƭ‡ϐ‹…‹‡…‹‡• ͸ʹʹ
Administration of Indirect Taxation in India 624
Administrative Mechanism at the Central Level 625
Existing Tax Structure 625
LESSON ROUND UP 630
GLOSSARY 631
TEST YOURSELF 631
LIST OF FURTHER READINGS 632
OTHER REFERENCES 632

ͳʹ
 


Basic Concepts and Overview of Goods and Services Tax 634

GST Model 634
Constitutional Framework of Goods & Services Tax 635
Taxable Event 635
Calculation of GST 636
‡ϐ‹‹–‹‘• ͸͵͸
Concept of Supply 638
Composite & Mixed Supply 645
Levy & Collection of Tax 647
Composition Scheme 648
Liability to pay GST 654
Exemptions under Goods & Services Tax 655
LESSON ROUND UP 657
GLOSSARY 657
TEST YOURSELF 658
LIST OF FURTHER READINGS 658

ššš˜‹‹‹
 ͳ͵
 ǡ 

Concept of Supply 660

Place of Supply 662
Time of Supply 671
Value of Taxable Supply [SECTION 15 of CGST Act, 2017] 677
Valuation Rules: Chapter IV, CGST Rules, 2017 679
LESSON ROUND UP 683
TEST YOURSELF 684
LIST OF FURTHER READINGS 685

LESSON 14
 


Regulatory Framework 688

Introduction of Input Tax Credit 688
Eligibility and Conditions for taking Input Tax Credit [Section 16] 689
Apportionment of credit and blocked credits [Section 17] 694
Blocked Credits [Section 17(5)] 697
Availability of Input Tax Credit in Special Cases [Section 18] 700
Goods Sent to Job Worker 705
Taking ITC in respect of inputs and capital goods sent for job work [Section 19] 706
Input Tax Credit Rules 707
Input Service Distributor 708
Computation of GST Liability 711
LESSON ROUND UP 713
TEST YOURSELF 713
LIST OF FURTHER READINGS 714

ͳͷ
PROCEDURAL COMPLIANCE UNDER GST

Regulatory Framework 716

Registration 717
GSTIN 718
Persons liable for Registration [Section 22] 718
Persons not liable for Registration [Section 23] 719
Compulsory Registration in certain cases [Section 24] 720
ššš‹š
Procedure for Registration [Section 25] 724
Suspension of Registration [Rule 21A] 735
Tax Invoices, Debit & Credit Notes 738
Rules for Tax Invoices, Debit & Credit Notes 744
E-Invoicing 747
Accounts and Records 753
Electronic Way Bills 755
Returns 756
Payments 757
Payment Rules [Chapter IX] 761
Refunds 764
Audit 767
LESSON ROUND UP 769
TEST YOURSELF 769
LIST OF FURTHER READINGS 770

ͳ͸

ǡ



Regulatory Framework 772

Introduction 773
Integrated Goods & Services Tax Act, 2017 773
Relevance of IGST 774
’‘”–ƒ–‡ϐ‹‹–‹‘• ͹͹ͷ
Levy and Collection Under IGST, Act 2017 [Section 5] 777
Union Territory Goods & Services Tax Act, 2017 778
Applicability of the UTGST Act, 2017 778
Applicability of GST on Union Territory of Jammu & Kashmir and Ladakh 780
Merger of Daman & Diu and Dadra & Nagar Haveli 780
†‹‹•–”ƒ–‹‘Ƭ‘™‡”•‘ˆˆϐ‹…‡”•ȏ‡…–‹‘ͶǡͷƬ͸Ȑ ͹ͺͲ
Levy and Collection of UTGST [Section 7] 781
Exemption from GST [Section 8] 781
Payment of Tax [Section 9] 782
Utilisation of ITC [Section 9A] 782
Order of utilisation of ITC [Section 9B] 782
Input Tax Credit on Input Stocks [Section 18] 783
Input Tax Credit: Taxable as Well As Exempted Goods 784
Switch Over from Composition Levy 784
šŽ
Advance Ruling [Section 14 of UTGST Act, 2017] 784
Constitution of Authority for Advance Ruling [Section 15] 785
Constitution of Appellate Authority for Advance Ruling [Section 16] 785
Miscellaneous 785
Power to Make Rules [Section 22] 786
General Power to Make Regulations [Section 23] 786
ƒ›‹‰‘ˆ—Ž‡•ǡ‡‰—Žƒ–‹‘•ƒ†‘–‹ϐ‹…ƒ–‹‘•ȏ‡…–‹‘ʹͶȐ ͹ͺ͸
Power to Issue Instructions or Directions [Section 25] 787
‡‘˜ƒŽ‘ˆ‹ˆϐ‹…—Ž–‹‡•ȏ‡…–‹‘ʹ͸Ȑ ͹ͺ͹
The Goods and Services Tax (Compensation to States) Act, 2017 787
Salient Features of GST (Compensation to States) Act, 2017 787
Projected Growth Rate [Section 3] 789
Base Year [Section 4] 789
Base Year Revenue [Section 5] 789
Projected Revenue for any Year [Section 6] 790
GST Compensation [Section 7] 790
Compensation Cess [Section 8] 792
Payments Return and Refund [Section 9] 792
Crediting Proceeds of Cess to Fund [Section 10] 792
Other provisions relating to Cess [Section 11] 793
Power to Make Rules [Section 12] 793
LESSON ROUND UP 795
TEST YOURSELF 795
LIST OF FURTHER READINGS 796

ͳ͹
OVERVIEW OF CUSTOM S ACT

Regulatory Framework 798

Introduction 799
Levy & Collection of Customs Duties 801
Types of Customs Duties 802
Žƒ••‹ϐ‹…ƒ–‹‘ƬƒŽ—ƒ–‹‘‘ˆ’‘”–ƒ†š’‘”–
‘‘†• ͺͲͷ
Valuation for Customs Duty 806
Valuation Rules 807
Exemptions under Customs Act 814
ˆϐ‹…‡”•‘ˆ—•–‘•ƒ™ ͺͳͶ
Administration of Customs Law 814
šŽ‹
Import & Export Procedures under Customs Law 816
Transportation & Warehousing 817
Baggage Rules 819
Duty Drawback 820
Demand & Recovery 821
‘ϐ‹•…ƒ–‹‘‘ˆ
‘‘†•Ƭ‘˜‡›ƒ…‡• ͺʹʹ
Refund 823
Miscellaneous 824
LESSON ROUND UP 826
TEST YOURSELF 827
LIST OF FURTHER READINGS 827

TEST PAPER  ͺ͵Ͳ

šŽ‹‹
Lesson 1 Direct Taxes–At a Glance
Key Concepts One Learning Objectives Regulatory
Should Know Framework
To understand:
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Lesson Outline
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 2 Lesson 1 Ȉ EP-TL

TAXES - AN INTRODUCTION

Š‡™‘”†–ƒš‹•„ƒ•‡†‘–Š‡Žƒ–‹™‘”†taxo™Š‹…Š‡ƒ•–‘‡•–‹ƒ–‡Ǥ‘–ƒš‡ƒ•–‘‹’‘•‡ƒϐ‹ƒ…‹ƒŽ
…Šƒ”‰‡‘”‘–Š‡”Ž‡˜›—’‘ƒ–ƒš’ƒ›‡”ǡƒ‹†‹˜‹†—ƒŽ‘”Ž‡‰ƒŽ‡–‹–›ǡ„›ƒ•–ƒ–‡‘”–Š‡ˆ—…–‹‘ƒŽ‡“—‹˜ƒŽ‡–‘ˆƒ
•–ƒ–‡•—…Š–Šƒ–ˆƒ‹Ž—”‡–‘’ƒ›‹•’—‹•Šƒ„Ž‡„›Žƒ™Ǥ
ƒšƒ–‹‘Šƒ•‡š‹•–‡†•‹…‡–Š‡„‹”–Š‘ˆ‡ƒ”Ž›…‹˜‹Ž‹œƒ–‹‘Ǥƒ…‹‡––‹‡•–ƒš‡•™‡”‡‡‹–Š‡”ƒ–‡”‹ƒŽ‘”‘‡›Ž‹‡
‰‘‘†•‘”•‡”˜‹…‡•‹–Š‡’”‹‹–‹˜‡•‘…‹‡–›ǤŠ‡•—„Œ‡…–•—•‡†–‘’ƒ›ƒ•Šƒ”‡‘ˆ–Š‡‹”‹…‘‡–‘–Š‡‡ƒ†‘ˆƒ–”‹„‡‘”
–‘–Š‡‹‰™Š‘‹”‡–—”’”‘˜‹†‡†–Š‡™‹–Š–Š‡ƒ†‹‹•–”ƒ–‹‘•‡…—”‹–›ˆ”‘ˆ‘”‡‹‰ƒ‰‰”‡••‹‘ƒ†‘–Š‡”…‹˜‹…
ƒ‡‹–‹‡•Ǥ
Genesis
–Š‡‡†‹‡˜ƒŽ …‡–—”‹‡•ˆ‡—†ƒŽ‹•™ƒ•ˆ‘—†‡†ǡ•‘–Š‡‘”‹‰‹‘ˆ‘†‡”–ƒš •›•–‡ƒŽ•‘™ƒ•ˆ‘—†‡†Ǥ ‡—†ƒŽ
ƒ”‡–†—‡•ǡ–‘ŽŽ•ˆ‘”’”‘–‡…–‹‘ƒ†—•‡‘ˆ”‘ƒ†ǡ„”‹†‰‡•ǡˆ‡””‹‡•ǡŽƒ†”‡–ǡƒ†‘–Š‡”’ƒ›‡–‹‰‘‘†•ƒ†•‡”˜‹…‡•
™‡”‡‰”ƒ†—ƒŽŽ›–”ƒ•ˆ‡””‡†‹–‘‘‡›’ƒ›‡–™‹–Š–Š‡”‹•‡‘ˆ‘‡›‡…‘‘›ǡ‹‰•Ž‹‡†–‘”‡…‡‹˜‡‘‡›ƒ†
–Š‡’‡‘’Ž‡’”‡ˆ‡””‡†–‘’ƒ›‘‡›‹•–‡ƒ†‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ–‡’„›•–‡’–Š‡‘Ž†ˆ‡—†ƒŽ”‡˜‡—‡•›•–‡…Šƒ‰‡†
‹–‘–ƒšƒ–‹‘Ǥ

Š‡ ™‹–Š –Š‡ †‡˜‡Ž‘’‡– ‘ˆ ‡…‘‘‹… •…‹‡…‡• ƒ† ™‹–Š –Š‡ ’ƒ••ƒ‰‡ ‘ˆ –‹‡ǡ –Š‡ ˆ—…–‹‘• ‘ˆ ‘†‡” •–ƒ–‡
ƒ’’‡ƒ”‡†ƒ†–ƒšƒ–‹‘‰”ƒ†—ƒŽŽ›„‡…ƒ‡ƒ–‘‘Ž‘ˆ—•ƒ‰‡™‹–Š‘”‡–Šƒ‘‡‰‘ƒŽƒ†„‡…ƒ‡‹’‘”–ƒ–•‘—”…‡‘ˆ
”‡˜‡—‡Ǥ —”‹‰ ͳͻ–Š ƒ† ʹͲ–Š …‡–—”‹‡•ǡ –Š‡”‡ Šƒ• „‡‡ „‘–Š “—ƒŽ‹–ƒ–‹˜‡ ƒ† “—ƒ–‹–ƒ–‹˜‡ …Šƒ‰‡ ‹ –Š‡ ’—„Ž‹…
‡š’‡†‹–—”‡•Ǥƒšƒ–‹‘Šƒ•’ƒ••‡†–Š”‘—‰Š–Š‡•–ƒ‰‡•™‹–Š’ƒ••ƒ‰‡‘ˆ–‹‡ǡƒ†–ƒšǯ•ˆ—…–‹‘•ƒ†‘„Œ‡…–‹˜‡•ƒŽ•‘
Šƒ˜‡…Šƒ‰‡†ˆ”‘–Š‡ƒ…‹‡–…‘—‹–‹‡•–‘‡†‹‡˜ƒŽ•‘…‹‡–‹‡•ƒ†‘†‡”•‘…‹‡–‹‡•ƒŽ•‘ǡ•‘–Š‡–ƒš•›•–‡Šƒ•
‡˜‘Ž˜‡†™‹–Š–Š‡‡˜‘Ž—–‹‘‘ˆ–Š‡ˆ—…–‹‘•‘ˆ–Š‡‘†‡”•–ƒ–‡Ǥ
ƒšƒ–‹‘‹•ƒ’ƒ›‡–ˆ”‘ƒ–—”ƒŽ’‡”•‘•‘”Ž‡‰ƒŽ‡–‹–›ƒ†‹–‹•Ž‡˜‹‡†„›‰‘˜‡”‡–ǡˆ‘”™Š‹…Š‘‰‘‘†•‘”
•‡”˜‹…‡•ƒ”‡”‡…‡‹˜‡††‹”‡…–Ž›‹”‡–—”ǡ•‘–ƒš‹•–Šƒ–ƒ‘—–‘ˆ‘‡›ǡ–Š‡’‡‘’Ž‡’ƒ›™Š‹…Š‹•‘–”‡Žƒ–‡††‹”‡…–Ž›
–‘–Š‡„‡‡ϐ‹–‘ˆ’‡‘’Ž‡‘„–ƒ‹‡†ˆ”‘–Š‡’”‘˜‹•‹‘‘ˆƒ›’ƒ”–‹…—Žƒ”‰‘‘†•‘”•‡”˜‹…‡•Ǥ
–‹Ž–Š‡‡ƒ”Ž›ͳͻ͵Ͳ•ǡ‹–™ƒ•—‹˜‡”•ƒŽŽ›ƒ……‡’–‡†‹’”‹…‹’Ž‡–Šƒ–‰‘˜‡”‡–••Š‘—Ž†„ƒŽƒ…‡–Š‡‹”„—†‰‡–•ǤŠ—•ǡ
–Š‡’”‹…‹’Ž‡”‡ƒ•‘ˆ‘”–ƒšƒ–‹‘™ƒ•–‘’ƒ›ˆ‘”‰‘˜‡”‡–‡š’‡†‹–—”‡•Ǥˆ…‘—”•‡ǡ‰‘˜‡”‡–•Šƒ†ˆ”‘–‹‡–‘
–‹‡”‡•‘”–‡†–‘„‘””‘™‹‰‹‘”†‡”–‘’ƒ›ˆ‘”–Š‡‹”‡š’‡†‹–—”‡•ƒ†‰‘˜‡”‡–„‘””‘™‹‰™ƒ•”‡Žƒ–‹˜‡Ž›“—‹–‡
Žƒ”‰‡†—”‹‰•‘‡™ƒ”’‡”‹‘†•Ǥ
‘˜‡”‡–„‘””‘™‹‰ƒ›„‡ˆ”‘–Š‡’”‹˜ƒ–‡•‡…–‘”‘”ˆ”‘ƒ„”‘ƒ†ǤŽ–‡”ƒ–‹˜‡Ž›ǡ
‰‘˜‡”‡–•ƒ›„‘””‘™ˆ”‘–Š‡…‡–”ƒŽ„ƒ‘ˆ–Š‡‘—–”›Ǥ’‘”–‹‘‘ˆ–ƒš‡•ƒŽ•‘‰‘‡•–‘’ƒ›‘ˆˆ–Š‡•–ƒ–‡ǯ•
†‡„–ƒ†–Š‡ƒ……——Žƒ–‡†‹–‡”‡•–Ǥ

Rational to levy Taxes

Š‡–ƒš‡•…‘ŽŽ‡…–‡†Šƒ˜‡„‡‡—•‡†„›–Š‡‰‘˜‡”‡––‘…ƒ””›‘—–ƒ›ˆ—…–‹‘•Ǥ‘‡‘ˆ–Š‡•‡‹…Ž—†‡ǣ
Ȉ ‡š’‡†‹–—”‡•‘™ƒ”ǡ
Ȉ –Š‡‡ˆ‘”…‡‡–‘ˆŽƒ™ƒ†’—„Ž‹…‘”†‡”ǡ
Ȉ ’”‘–‡…–‹‘‘ˆ’”‘’‡”–›ǡ
Ȉ ‡…‘‘‹…‹ˆ”ƒ•–”—…–—”‡ȋ”‘ƒ†•ǡŽ‡‰ƒŽ–‡†‡”ǡ‡ˆ‘”…‡‡–‘ˆ…‘–”ƒ…–•ǡ‡–…ǤȌǡ
Ȉ ’—„Ž‹…™‘”•ǡ
Ȉ •‘…‹ƒŽ‡‰‹‡‡”‹‰ǡƒ†
Ȉ –Š‡‘’‡”ƒ–‹‘‘ˆ‰‘˜‡”‡–‹–•‡ŽˆǤ

‘˜‡”‡–•ƒŽ•‘—•‡–ƒš‡•–‘ˆ—†™‡Žˆƒ”‡ƒ†’—„Ž‹…•‡”˜‹…‡•ǤŠ‡•‡•‡”˜‹…‡•…ƒ‹…Ž—†‡
Ȉ ‡†—…ƒ–‹‘•›•–‡•ǡ
Ȉ Š‡ƒŽ–Š…ƒ”‡•›•–‡•ǡ
Ȉ ’‡•‹‘•ˆ‘”–Š‡‡Ž†‡”Ž›ǡ
 Lesson 1 Ȉ Direct Taxes – At a Glance 3

Ȉ —‡’Ž‘›‡–„‡‡ϐ‹–•ǡƒ†
Ȉ ’—„Ž‹…–”ƒ•’‘”–ƒ–‹‘ǡ‡‡”‰›ǡ™ƒ–‡”ƒ†™ƒ•–‡ƒƒ‰‡‡–•›•–‡•ǡ…‘‘’—„Ž‹…—–‹Ž‹–‹‡•ǡ‡–…Ǥ

‘˜‡”‡–•Šƒ˜‡ƒŽ•‘ϐ‹ƒ…‡†‡š’‡†‹–—”‡•‹”‡…‡–›‡ƒ”•–Š”‘—‰Š–Š‡•ƒŽ‡‘ˆ’—„Ž‹…Ž›‘™‡†ƒ••‡–•ǤŽ–Š‘—‰Š
ƒ••‡–•ƒŽ‡•™‡”‡ƒ‹’‘”–ƒ–•‘—”…‡‘ˆˆ—†•–‘–Š‡‰‘˜‡”‡–ǡŠ‘™‡˜‡”ǡ–Š‡›ƒ”‡‡…‡••ƒ”‹Ž›Ž‹‹–‡†•‹…‡ƒ••‡–•…ƒ
‘Ž›„‡•‘Ž†‘…‡ǤŠ—•ǡ‰‘˜‡”‡–••–‹ŽŽŠƒ˜‡–‘”ƒ‹•‡‘•–‘ˆ–Š‡”‡˜‡—‡‡‡†‡†–‘ϐ‹ƒ…‡–Š‡‹”‡š’‡†‹–—”‡•–Š”‘—‰Š
–ƒšƒ–‹‘‘”„›…Šƒ”‰‹‰†‹”‡…–Ž›ˆ‘”‰‘˜‡”‡–•‡”˜‹…‡•ȋ—•‡”…Šƒ”‰‡•ȌǤ
‘˜‡”‡–•—•‡†‹ˆˆ‡”‡–‹†•‘ˆ–ƒš‡•ƒ†
˜ƒ”›–Š‡–ƒš”ƒ–‡•ǡ–Š‹•‹•†‘‡–‘†‹•–”‹„—–‡–Š‡–ƒš„—”†‡ƒ‘‰‹†‹˜‹†—ƒŽ•‘”…Žƒ••‡•‘ˆ–Š‡’‘’—Žƒ–‹‘‹˜‘Ž˜‡†‹
–ƒšƒ„Ž‡ƒ…–‹˜‹–‹‡•ǡ•—…Šƒ•„—•‹‡••ǡ‘”–‘”‡†‹•–”‹„—–‡”‡•‘—”…‡•„‡–™‡‡‹†‹˜‹†—ƒŽ•‘”…Žƒ••‡•‹–Š‡’‘’—Žƒ–‹‘Ǥ
‘†‡”•‘…‹ƒŽ•‡…—”‹–›•›•–‡•ƒ”‡‹–‡†‡†–‘•—’’‘”––Š‡’‘‘”ǡ–Š‡†‹•ƒ„Ž‡†ǡ‘”–Š‡”‡–‹”‡†’‡”•‘„›–ƒš‡•‘
–Š‘•‡™Š‘ƒ”‡•–‹ŽŽ™‘”‹‰Ǥƒ††‹–‹‘ǡ–ƒš‡•ƒ”‡ƒ’’Ž‹‡†–‘ˆ—†ˆ‘”‡‹‰ƒ‹†ƒ†‹Ž‹–ƒ”›˜‡–—”‡•ǡ–‘‹ϐŽƒ–‡–Š‡
ƒ…”‘‡…‘‘‹… ’‡”ˆ‘”ƒ…‡ ‘ˆ –Š‡ ‡…‘‘› ‘” –‘ ‘†‹ˆ› ’ƒ––‡”• ‘ˆ …‘•—’–‹‘ ‘” ‡’Ž‘›‡– ™‹–Š‹ ƒ
‡…‘‘›ǡ„›ƒ‹‰•‘‡…Žƒ••‡•‘ˆ–”ƒ•ƒ…–‹‘‘”‡‘”Ž‡••ƒ––”ƒ…–‹˜‡ǤŠ—•ǡ–Š‡”‡‹•‘†‘—„––Šƒ–‘•–‰‘˜‡”‡–
‡š’‡†‹–—”‡•—•–„‡’ƒ‹†–Š”‘—‰Š–Š‡–ƒšƒ–‹‘•›•–‡ƒ†‹–‹•”‡ƒ•‘ƒ„Ž‡–‘•‡‡–Š‹•ƒ•–Š‡’”‹…‹’Ž‡ˆ—…–‹‘‘ˆ
–ƒšƒ–‹‘Ǥ‡––Š‡”‡Šƒ˜‡ƒŽ™ƒ›•„‡‡ƒ˜ƒ”‹‡–›‘ˆ•—„•‹†‹ƒ”›‘„Œ‡…–‹˜‡•‘ˆ–ƒšƒ–‹‘Ǥ
–Š‡’”‡•‡––‹‡ǡ–ƒšƒ–‹‘‹•‘–Œ—•–ƒ‡ƒ•‘ˆ–”ƒ•ˆ‡””‹‰‘‡›–‘–Š‡‰‘˜‡”‡––‘•’‡†‹–ˆ‘”‡‡–‹‰–Š‡
’—„Ž‹… ‡š’‡†‹–—”‡• ‘” ”ƒ‹•‡ ”‡˜‡—‡ –‘ –Š‡ ‰‘˜‡”‡–ǡ „—– –ƒš‡• Šƒ˜‡ „‡…‘‡ „‡•‹†‡ –Šƒ–ǡ ƒ –‘‘Ž ˆ‘” ”‡†—…‡†
†‡ƒ†‹–Š‡’”‹˜ƒ–‡•‡…–‘”ǡ”‡†‹•–”‹„—–‹‘‘ˆ‹…‘‡ƒ†™‡ƒŽ–Š‹–Š‡•‘…‹‡–‹‡•‹–Š‡…‘—–”‹‡•Ǥ–‹•ƒŽ•‘ƒ‡ƒ•
ˆ‘”‡…‘‘‹…†‡˜‡Ž‘’‡–ƒ†ˆ‘”’Žƒ›‹‰˜‡”›‹’‘”–ƒ–”‘Ž‡‹–Š‡…ƒ•‡‘ˆ•–ƒ„‹Ž‹œƒ–‹‘‘ˆ‹…‘‡ǡ’”‘–‡…–‹‘‘ˆ
†‘‡•–‹…‹†—•–”‹‡•ˆ”‘ˆ‘”‡‹‰‘‡•Ǥƒšƒ–‹‘Š‡Ž’•–‘ϐ‹†‘—–•‘Ž—–‹‘•ˆ‘”•‘‡‡…‘‘‹…’”‘„Ž‡•–Šƒ–ˆƒ…‡
–Š‡ •–ƒ–‡ǡ Ž‹‡ —‡’Ž‘›‡–ǡ ‹ϐŽƒ–‹‘ǡ ƒ† †‡’”‡••‹‘Ǥ ‘—–”‹‡• ’”ƒ…–‹…‡ •‘˜‡”‡‹‰– ƒ—–Š‘”‹–› —’‘ …‹–‹œ‡•ǡ
–Š”‘—‰ŠŽ‡˜›‘ˆƒš‡•Ǥ

‡›‡ϐ‹‹–‹‘•
Š‡”‡‹•‘’”‡…‹•‡ƒ†ƒ……—”ƒ–‡†‡ϐ‹‹–‹‘ˆ‘”–Š‡–‡”–ƒšƒ†–Š‡…‘…‡’–‘ˆ–ƒšŠƒ•„‡‡†‡ϐ‹‡††‹ˆˆ‡”‡–Ž›„›
†‹ˆˆ‡”‡–‡…‘‘‹•–•Ǥ‘‡†‡ϐ‹‹–‹‘•ƒ”‡ƒ•ˆ‘ŽŽ‘™•Ǥ
……‘”†‹‰–‘ Prof Seligman Ȃ–ƒš‹•…‘’—Ž•‘”›…‘–”‹„—–‹‘ˆ”‘–Š‡’‡”•‘–‘–Š‡‰‘˜‡”‡––‘†‡ˆ”ƒ›–Š‡
‡š’‡•‡‹…—””‡†‹–Š‡…‘‘‹–‡”‡•–‘ˆƒŽŽ™‹–Š‘—–”‡ˆ‡”‡…‡–‘•’‡…‹ƒŽ„‡‡ϐ‹–•…‘ˆ‡””‡†Ǥ
……‘”†‹‰–‘Bastable Ȃ–ƒšƒ•ƒ…‘’—Ž•‘”›…‘–”‹„—–‹‘‘ˆ–Š‡™‡ƒŽ–Š‘ˆƒ’‡”•‘ǡ‘”„‘†›‘ˆ’‡”•‘•ˆ‘”–Š‡
•‡”˜‹…‡‘ˆ’—„Ž‹…’‘™‡”•Ǥ
Deviti. De Marco †‡ϐ‹‡• Ȃ–ƒšƒ•ƒ•Šƒ”‡‘ˆ–Š‡‹…‘‡‘ˆ…‹–‹œ‡•™Š‹…Š–Š‡•–ƒ–‡ƒ’’”‘’”‹ƒ–‡‹‘”†‡”–‘’”‘…—”‡
ˆ‘”‹–•‡Žˆ–Š‡‡ƒ•‡…‡••ƒ”›ˆ‘”–Š‡’”‘†—…–‹‘‘ˆ‰‡‡”ƒŽ’—„Ž‹…•‡”˜‹…‡•Ǥ
Hugh Dalton Ȃ–ƒš‹•ƒ…‘’—Ž•‘”›…Šƒ”‰‡‹’‘•‡†„›ƒ’—„Ž‹…ƒ—–Š‘”‹–›‹””‡•’‡…–‹˜‡‘ˆ–Š‡‡šƒ…–ƒ‘—–‘ˆ
•‡”˜‹…‡”‡†‡”‡†–‘–Š‡–ƒš’ƒ›‡”‹”‡–—”ƒ†‘–‹’‘•‡†ƒ•ƒ’‡ƒŽ–›ˆ‘”Ž‡‰ƒŽ‘ˆˆ‡…‡Ǥ
Jom Bouvier †‡ϐ‹‡†ƒ–ƒšƒ•Dz’‡…—‹ƒ”›„—”†‡‹’‘•‡†ˆ‘”•—’’‘”–‘ˆ–Š‡‰‘˜‡”‡–ǡ–Š‡‡ˆ‘”…‡†’”‘’‘”–‹‘ƒŽ
…‘–”‹„—–‹‘‘ˆ’‡”•‘•ƒ†’”‘’‡”–›‘ˆ–Š‡‰‘˜‡”‡–ƒ†ˆ‘”ƒŽŽ’—„Ž‹…‡‡†•dzǤ
……‘”†‹‰–‘ TrussingǡDzŠ‡‡••‡…‡‘ˆƒšƒ•†‹•–‹‰—‹•Š‡†ˆ”‘‘–Š‡”…Šƒ”‰‡•„›‰‘˜‡”‡–‹•–Š‡ƒ„•‡…‡‘ˆ
†‹”‡…–“—‹†’”‘“—‘Ǧ–‹–ˆ‘”–ƒ–„‡–™‡‡–Š‡–ƒš’ƒ›‡”•ƒ†–Š‡’—„Ž‹…ƒ—–Š‘”‹–›dzǤ
”‘ –Š‡ ƒ„‘˜‡ †‡ϐ‹‹–‹‘• ™‡ ƒ› …‘…Ž—†‡ –Šƒ– ƒ –ƒš ‹• …‘’—Ž•‘”› …‘–”‹„—–‹‘ǡ Ž‡˜‹‡† „› ‰‘˜‡”‡– ˆ”‘
‘™‡”‘ˆ‹…‘‡™‹–Š‘—–†‹”‡…–„‡‡ϐ‹–„—–ˆ‘”’—„Ž‹…„‡‡ϐ‹–ǡƒ†–ƒš‡••Š‘—Ž†„‡ƒ””ƒ‰‡†„›–Š‡Žƒ™Ǥ

CHARACTERSTICS OF TAXES
1. Tax is compulsory Ȃ–ƒš‹•‹’‘•‡†„›Žƒ™Ǥ‘–ƒš‹•…‘’—Ž•‘”›’ƒ›‡––‘–Š‡‰‘˜‡”‡–•ˆ”‘‹–•
…‹–‹œ‡•Ǥ ƒš ‹• †—–› ‘ˆ ‡˜‡”› …‹–‹œ‡ –‘ „‡ƒ” Š‹• •Šƒ”‡ ˆ‘” •—’’‘”–‹‰ –Š‡ ‰‘˜‡”‡–Ǥ Š‡ –ƒš ‹•
…‘’—Ž•‘”›’ƒ›‡–ǡ”‡ˆ—•ƒŽ‘”‘„Œ‡…–‹‘ˆ‘”’ƒ›‹‰–ƒš†—‡Ž‡ƒ†•–‘’—‹•Š‡–‘”‹•ƒ‘ˆˆ‡…‡‘ˆ–Š‡
‘—”–‘ˆŽƒ™Ǥ
‘˜‡”‡–‹’‘•‡•–ƒš™Š‡•‘‡„‘†›„—›•…‘‘†‹–‹‡•ǡ‘”™Š‡ƒ”‡‹–••‡”˜‹…‡•‘”
‡ƒ”•‹…‘‡‘”ƒ›‘–Š‡”…‘†‹–‹‘ˆ‘”…‘’—Ž•‹‘‹•ˆ‘—†ǤŠ‡‰‘˜‡”‡–’”ƒ…–‹…‡•‹–••‘˜‡”‡‹‰
™Š‡Ž‡˜›‹‰–Š‡–ƒšˆ”‘‹–•…‹–‹œ‡•Ǥ
 4 Lesson 1 Ȉ EP-TL

ʹǤ Tax is contribution Ȃ‘–”‹„—–‹‘‡ƒ•‹‘”†‡”–‘Š‡Ž’‘”’”‘˜‹†‡•‘‡–Š‹‰Ǥƒš‹•…‘–”‹„—–‹‘ˆ”‘

‡„‡”• ‘ˆ …‘—‹–› –‘ –Š‡
‘˜‡”‡–Ǥ  –ƒš ‹• –Š‡ †—–› ‘ˆ ‡˜‡”› …‹–‹œ‡ –‘ „‡ƒ” –Š‡‹” †—‡ •Šƒ”‡ ˆ‘”
•—’’‘”––‘‰‘˜‡”‡––‘Š‡Ž’‹––‘ˆƒ…‡‹–•‡š’‡†‹–—”‡•Ǥ‘‡™ƒ–•ƒ”‡…‘‘–‘‡˜‡”›„‘†›‹–Š‡•‘…‹‡–›
Ž‹‡†‡ˆ‡…‡ƒ†•‡…—”‹–›ǡ•‘–Š‡•‡™ƒ–•…ƒ‘–„‡•ƒ–‹•ϐ‹‡†„›‹†‹˜‹†—ƒŽ•ǤŠ‡•‡•‘…‹ƒŽ™ƒ–•ƒ”‡•ƒ–‹•ϐ‹‡†
„›‰‘˜‡”‡–•ǡŠ‡…‡–Š‡’‡‘’Ž‡•—’’‘”–‰‘˜‡”‡–ˆ‘”–Š‡•‡•‘…‹ƒŽ™ƒ–•Ǥ‘–”‹„—–‹‘‹˜‘Ž˜‡•Ž‘••‘”
•ƒ…”‹ϐ‹…‡ˆ”‘–Š‡•‹†‡‘ˆ…‘–”‹„—–‘”Ǥ
͵Ǥ ƒš‹•ˆ‘”’—„Ž‹…„‡‡ϐ‹–Ȃƒš‹•Ž‡˜‹‡†ˆ‘”–Š‡…‘‘‰‘‘†‘ˆ•‘…‹‡–›™‹–Š‘—–”‡‰ƒ”†–‘„‡‡ϐ‹––‘ƒ›
•’‡…‹ƒŽ ‹†‹˜‹†—ƒŽǤ
‘˜‡”‡– ’”‘…‡‡†• ƒ”‡ •’‡– –‘ ‡š–‡† …‘‘ „‡‡ϐ‹–• –‘ ƒŽŽ –Š‡ ’‡‘’Ž‡ •—…Š ƒ•
ƒ–—”ƒŽ†‹•ƒ•–‡”ǦŽ‹‡ϐŽ‘‘†•ǡˆƒ‹‡Ǧ†‡ˆ‡…‡‘ˆ–Š‡…‘—–”›ǡƒ‹–‡ƒ…‡‘ˆŽƒ™ƒ†‡•–ƒ„Ž‹•Š‹ˆ”ƒ•–”—…–—”‡
ƒ†‘”†‡”Ǥ—…Š„‡‡ϐ‹–•ƒ”‡‰‹˜‡–‘ƒŽŽ’‡‘’Ž‡Ǥ
ͶǤ ‘†‹”‡…–„‡‡ϐ‹–Ȃ
‘˜‡”‡–‹•…‘’—Ž•‘”‹Ž›…‘ŽŽ‡…–‹‰ƒŽŽ–›’‡•‘ˆ–ƒš‡•ƒ††‘‡•‘–‰‹˜‡ƒ›†‹”‡…–
„‡‡ϐ‹–•–‘–Š‡–ƒš’ƒ›‡”ˆ‘”–ƒš‡•’ƒ‹†ǤŠ‡‡••‡…‡‘ˆ–ƒšƒ•†‹•–‹‰—‹•Š‡†ˆ”‘‘–Š‡”…Šƒ”‰‡•„›‰‘˜‡”‡–•
‹•–Š‡ƒ„•‡…‡‘ˆƒ†‹”‡…–“—‹†Ǧ’”‘Ǧ“—‡„‡–™‡‡–Š‡–ƒš’ƒ›‡”ƒ†–Š‡’—„Ž‹…ƒ—–Š‘”‹–›Ǥƒš‹•†‹ˆˆ‡”‡–ˆ”‘
ƒ‘–Š‡”‰‘˜‡”‡–…Šƒ”‰‡•™Š‹…Šƒ›‰‹˜‡†‹”‡…–„‡‡ϐ‹–•–‘’ƒ›‡”••—…Šƒ•’”‹…‡•ǡˆ‡‡•ǡϐ‹‡•‡–…Ǥ™Š‡”‡–Š‡
†‹”‡…–„‡‡ϐ‹–•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡Ǥƒš‡•ƒ”‡ˆ‘”…‘‘„‡‡ϐ‹–•–‘ƒŽŽ–Š‡‡„‡”•‘ˆ–Š‡•‘…‹‡–›Ǥ
ͷǤ Tax is paid out of income of the tax payer Ȃ…‘‡‡ƒ•‘‡›”‡…‡‹˜‡†ǡ‡•’‡…‹ƒŽŽ›‘”‡‰—Žƒ”„ƒ•‹•ǡˆ‘”
™‘”‘”–Š”‘—‰Š‹˜‡•–‡–Ǥƒš‹•’ƒ‹†‘—–‘ˆ‹…‘‡ƒ•Ž‘‰ƒ•–Š‡‹…‘‡„‡…‘‡•”‡ƒŽ‹œ‡†ǡŠ‡”‡–Š‡–ƒš
‹• ‹’‘•‡†Ǥ …‘‡ ‘™‡” Šƒ• ’”‘ϐ‹– ˆ”‘ ƒ› „—•‹‡••ǡ •‘ Š‡ •Š‘—Ž† ’ƒ› Š‹• •Šƒ”‡ ˆ‘” •—’’‘”– –‘ –Š‡
‰‘˜‡”‡–Ǥ
͸Ǥ Government has the power to levy tax Ȃ
‘˜‡”‡–•ƒ”‡’”ƒ…–‹…‹‰•‘˜‡”‡‹‰ƒ—–Š‘”‹–›—’‘–Š‡…‹–‹œ‡•
–Š”‘—‰ŠŽ‡˜›‹‰‘ˆ–ƒš‡•ǤŽ›‰‘˜‡”‡–…ƒ…‘ŽŽ‡…––ƒšˆ”‘–Š‡’‡‘’Ž‡Ǥƒš‹•–”ƒ•ˆ‡””‹‰”‡•‘—”…‡•ˆ”‘
–Š‡’”‹˜ƒ–‡•‡…–‘”–‘–Š‡’—„Ž‹…•‡…–‘”Ǥ
‘˜‡”‡–‹•Ž‡˜›‹‰–Š‡–ƒš–‘…‘˜‡”‹–•‡š’‡†‹–—”‡•ǤŠ‡‰‘˜‡”‡–
—•‡Ƭ–Š‡•‡–ƒš‡•ˆ‘”‹…”‡ƒ•‹‰•‘…‹ƒŽ™‡Žˆƒ”‡Ƭ‡…‘‘›†‡˜‡Ž‘’‡–Ǥ
͹Ǥ ƒš‹•‘––Š‡…‘•–‘ˆ–Š‡„‡‡ϐ‹–Ȃƒš‹•‘––Š‡…‘•–‘ˆ„‡‡ϐ‹–…‘ˆ‡””‡†„›–Š‡‰‘˜‡”‡–‘–Š‡’—„Ž‹…Ǥ
‡‡ϐ‹– ƒ† –ƒš’ƒ›‡” ƒ”‡ ‹†‡’‡†‡– ‘ˆ ‡ƒ…Š ‘–Š‡”ǡ ƒ† ’ƒ›‡– ‘ˆ –ƒšƒ–‹‘ ‹• ‘ˆ …‘—”•‡ †‡•‹‰‡† ˆ‘”
…‘ˆ‡””‹‰‘ˆ„‡‡ϐ‹–•‘‰‡‡”ƒŽ’—„Ž‹…Ǥ
ͺǤ Tax is for the economic growth and public welfare ȂƒŒ‘”‘„Œ‡…–‹˜‡‘ˆ–Š‡‰‘˜‡”‡–‹•–‘ƒš‹‹œ‡
‡…‘‘‹…‰”‘™–Šƒ†•‘…‹ƒŽ™‡Žˆƒ”‡Ǥ‡˜‡Ž‘’‡–ƒŽƒ…–‹˜‹–‹‡•‘ˆ–Š‡ƒ–‹‘•‰‡‡”ƒŽŽ›‹˜‘Ž˜‡–™‘‘’‡”ƒ–‹‘•ǡ
–Š‡”ƒ‹•‹‰‘ˆ”‡˜‡—‡ƒ†–Š‡•’‡†‹‰‘ˆ”‡˜‡—‡ǡ•‘–Š‡‰‘˜‡”‡–•’‡–†•–ƒš‡•ˆ‘”‡…‘‘‹…„‡‡ϐ‹–ǡˆ‘”
‡–‹”‡…‘—‹–›ƒ†ˆ‘”ƒ‰‰”‡‰ƒ–‡™‡Žˆƒ”‡‘ˆ–Š‡•‘…‹‡–›Ǥ

Characteristics of the Good Tax System

Equity Certainty Economy Automatic Stabiliser

Š‘—Ž†„‡„ƒ•‡†‘ ‘™›‘—”–ƒš ‘•–‘ˆ…‘ŽŽ‡…–‹‘ Š‘—Ž†Šƒ˜‡•–ƒ„Ž‹‰‡ˆˆ‡…–‘
ƒ„‹Ž‹–›–‘’ƒ› Ž‹ƒ„‹Ž‹–› —•–„‡Ž‘™ ƒ–‹‘ƒŽ‹…‘‡Ževel

Convenience Redistribution Flexible Not Discourage

M—•–„‡‡ƒ•›–‘ ƒšƒ–‹‘•Š‘—Ž†‡ƒ„Ž‡–‘ Chƒ‰‡ƒ„Ž‡–‘ Work or
…‘ŽŽ‡…––ƒš ”‡†‹•–”‹„—–‡™‡ƒŽ–Šˆ”‘”‹…Š •—‹–‡…‘‘‹… Investment
–‘’‘‘” …‘†‹–‹‘•

CANONS OF TAXATION
ƒ‘•‘ˆ–ƒšƒ–‹‘”‡ˆ‡”–‘–Š‡ƒ†‹‹•–”ƒ–‹˜‡ƒ•’‡…–‘ˆƒ–ƒšǤŠ‡›ƒ”‡”‡Žƒ–‡†–‘–Š‡”ƒ–‡ǡƒ‘—–ǡ‡–Š‘†‘ˆŽ‡˜›ǡ
ƒ†…‘ŽŽ‡…–‹‘‘ˆƒ–ƒšǤ‡•’‹–‡–Š‡‘†‡”†‡˜‡Ž‘’‡–‘ˆ‡…‘‘‹…•…‹‡…‡•ǡ†ƒ‹–ŠǮ•…ƒ‘•‘ˆ–ƒšƒ–‹‘ǡ
 Lesson 1 Ȉ Direct Taxes – At a Glance 5

•–‹ŽŽ…‘–‹—‡–‘„‡™‹†‡Ž›ƒ……‡’–‡†ƒ•’”‘˜‹†‹‰ƒ‰‘‘†„ƒ•‹•„›™Š‹…Š–‘Œ—†‰‡–ƒš‡•ƒ†–Š‡•‡’”‹…‹’Ž‡••–‹ŽŽƒ’’Ž›
–‘†ƒ›ǤŠ‡ˆ—†ƒ‡–ƒŽ…ƒ‘•‘ˆ–ƒšƒ–‹‘ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

ƒ‘‘ˆ
“—‹–›

ƒ‘‘ˆ Canons of ƒ‘‘ˆ

…‘‘› Taxation ‡”–ƒ‹–›

ƒ‘‘ˆ
‘˜‡‹‡…‡

Šƒ––Š‡„ƒ•‹…’”‹…‹’Ž‡‘ˆ–ƒšƒ–‹‘Šƒ•”‡‹†‡†‘”‡‘”Ž‡••—…Šƒ‰‡†ˆ‘”ʹʹͲ›‡ƒ”•Ǥ‹…‡–Š‡ǡ–Š‡”‡Šƒ•„‡‡
ƒŽ‘–‘ˆ…Šƒ‰‡‹–Š‡‡…‘‘‹…ƒ…–‹˜‹–‹‡•ǡ•‘‘†‡”‡…‘‘‹•–•Ž‹‡Šƒ”Ž‡• ƒ•–ƒ„Ž‡ǡƒŽ–‘Šƒ˜‡ƒ††‡†•‘‡
‘”‡…ƒ‘•–‘–Š‡•‡–‘—’†ƒ–‡ƒ†‡š’ƒ†–Š‡Ǥ
ͳǤ Canon of equityǣŠ‹•…ƒ‘‹’Ž‹‡•–Šƒ–ƒ›–ƒš•›•–‡•Š‘—Ž†„‡„ƒ•‡†‘–Š‡’”‹…‹’Ž‡‘ˆ•‘…‹ƒŽŒ—•–‹…‡Ǥ
“—‹–›”‡ˆ‡”•–‘„‘–ŠŠ‘”‹œ‘–ƒŽƒ†˜‡”–‹…ƒŽ‡“—‹–›Ǥ‘”‹œ‘–ƒŽ‡“—‹–›†‡•…”‹„‡•–Š‡…‘…‡’––Šƒ–ǡ–ƒš’ƒ›‡”•
™‹–Š‡“—ƒŽƒ„‹Ž‹–‹‡•–‘’ƒ›•Š‘—Ž†’ƒ›–Š‡•ƒ‡ƒ‘—–‘ˆ–ƒšǤ‡”–‹…ƒŽ‡“—‹–›‡ƒ•–Šƒ––ƒš’ƒ›‡”•™‹–Šƒ
‰”‡ƒ–‡”ƒ„‹Ž‹–›–‘’ƒ›•Š‘—Ž†’ƒ›‘”‡–ƒšǤ
ʹǤ Canon of Certainty ǣŠ‡–ƒš”—Ž‡••Š‘—Ž†…Ž‡ƒ”Ž›•’‡…‹ˆ›™Š‡–Š‡–ƒš‹•–‘„‡’ƒ‹†ǡŠ‘™‹–‹•–‘„‡’ƒ‹†ǡƒ†
Š‘™–Š‡ƒ‘—––‘„‡’ƒ‹†‹•–‘„‡†‡–‡”‹‡†Ǥ„Œ‡…–‹˜‡‘ˆ–Š‹•…ƒ‘‹•–‘…”‡ƒ–‡–”—•–„‡–™‡‡–™‘’ƒ”–‹‡•ǡ
ϐ‹”•–’ƒ”–›–ƒš’ƒ›‡”™Š‘‹•–‘’ƒ›–Š‡–ƒšƒ†•‡…‘†’ƒ”–›–Š‡ƒ—–Š‘”‹–›™Š‘”‡…‡‹˜‡•–ƒšǤˆ–ƒš’ƒ›‡”•Šƒ˜‡
†‹ˆϐ‹…—Ž–› ‡ƒ•—”‹‰ –Š‡ –ƒš „ƒ•‡ ‘” †‡–‡”‹‹‰ –Š‡ ƒ’’Ž‹…ƒ„Ž‡ –ƒš ”ƒ–‡ ‘” –Š‡ –ƒš …‘•‡“—‡…‡• ‘ˆ ƒ
–”ƒ•ƒ…–‹‘ǡ–Š‡…‡”–ƒ‹–›†‘‡•Ǯ–‡š‹•–Ǥ‡”–ƒ‹–›‹‰Š–ƒŽ•‘„‡˜‹‡™‡†ƒ•–Š‡Ž‡˜‡Ž‘ˆ…‘ϐ‹†‡…‡ƒ’‡”•‘
Šƒ•–Šƒ––Š‡–ƒš‹•„‡‹‰…ƒŽ…—Žƒ–‡†…‘””‡…–Ž›Ǥ
͵Ǥ Canon of Convenienceǣ–ƒš•Š‘—Ž†„‡†—‡ƒ–ƒ–‹‡‘”‹ƒƒ‡”–Šƒ–‹•‘•–Ž‹‡Ž›–‘„‡…‘˜‡‹‡–ˆ‘”
–Š‡–ƒš’ƒ›‡”Ǥ‘˜‡‹‡…‡‹’ƒ›‹‰ƒ–ƒšŠ‡Ž’•–‘‡•—”‡…‘’Ž‹ƒ…‡ǤŠ‡ƒ’’”‘’”‹ƒ–‡’ƒ›‡–‡…Šƒ‹•
†‡’‡†•‘–Š‡ƒ‘—–‘ˆ–Š‡Ž‹ƒ„‹Ž‹–›ƒ†Š‘™‡ƒ•›‘”†‹ˆϐ‹…—Ž–‹–‹•–‘…‘ŽŽ‡…–Ǥ‹•…—••‹‘‘ˆ–Š‹•’”‹…‹’Ž‡‹
†‡•‹‰‹‰ ƒ ’ƒ”–‹…—Žƒ” ”—Ž‡ ‘” –ƒš •›•–‡ ™‘—Ž† ˆ‘…—• ‘ ™Š‡–Š‡” ‹– ‹• „‡•– –‘ …‘ŽŽ‡…– –Š‡ –ƒš ˆ”‘ –Š‡
ƒ—ˆƒ…–—”‡”ǡ™Š‘Ž‡•ƒŽ‡”ǡ”‡–ƒ‹Ž‡”‘”…—•–‘‡”ǡƒ•™‡ŽŽƒ•–Š‡ˆ”‡“—‡…›‘ˆ…‘ŽŽ‡…–‹‘Ǥ
ͶǤ Canon of EconomyǣŠ‹•…ƒ‘‹’Ž‹‡•–Šƒ–†‡…”‡ƒ•‹‰–Š‡ƒ†‹‹•–”ƒ–‹˜‡…‘•–‘ˆ…‘ŽŽ‡…–‹‘‘ˆ–Š‡–ƒšƒ––Š‡
Ž‘™‡•–Ž‡˜‡ŽǤŠ‡…‘•–•–‘…‘ŽŽ‡…–ƒ–ƒš•Š‘—Ž†„‡‡’––‘ƒ‹‹—ˆ‘”„‘–Š–Š‡‰‘˜‡”‡–ƒ†–ƒš’ƒ›‡”•Ǥ
Š‹•’”‹…‹’Ž‡…‘•‹†‡”•–Š‡—„‡”‘ˆ”‡˜‡—‡‘ˆϐ‹…‡”•‡‡†‡†–‘ƒ†‹‹•–‡”ƒ–ƒšǤ‘’Ž‹ƒ…‡…‘•–•ˆ‘”
–ƒš’ƒ›‡”••Š‘—Ž†ƒŽ•‘„‡…‘•‹†‡”‡†ǤŠ‹•’”‹…‹’Ž‡‹•…Ž‘•‡Ž›”‡Žƒ–‡†–‘–Š‡’”‹…‹’Ž‡‘ˆ•‹’Ž‹…‹–›Ǥ
 6 Lesson 1 Ȉ EP-TL

OBJECTIVES OF TAXATION
„Œ‡…–‹˜‡• ‘ˆ –ƒš‡• Šƒ˜‡ „‡‡ †‡˜‡Ž‘’‡† ™Š‡ –Š‡ ˆ—…–‹‘• ‘ˆ –Š‡
‘˜‡”‡– ƒ”‡ †‡˜‡Ž‘’‡†Ǥ  –Š‡ ’”‹‹–‹˜‡
…‘—‹–‹‡•ƒ‡„‡”Šƒ•–‘’ƒ›Š‹••Šƒ”‡–‘–Š‡‡ƒ†‘ˆ–Š‡–”‹„‡ǡ™Š‘‹”‡–—”’”‘˜‹†‡•–Š‡™‹–Šƒ†‹‹•–”ƒ–‹‘ǡ
•‡…—”‹–›ˆ”‘ˆ‘”‡‹‰ƒ‰‰”‡••‹‘ƒ†‘–Š‡”…‹˜‹…ƒ‡‹–‹‡•Ǥ—––‘†ƒ›–ƒšƒ–‹‘„‡•‹†‡•„‡‹‰–Š‡ƒ‹”‡•‘—”…‡ˆ‘”
•—’’‘”–‹‰ ‰‘˜‡”‡– Šƒ• „‡…ƒ‡ ƒ –‘‘Ž ˆ‘” ‡…‘‘‹… ‰”‘™–Šǡ •‘…‹ƒŽ ™‡Žˆƒ”‡Ǣ ƒ––”ƒ…– ˆ‘”‡‹‰‡” ‹˜‡•–‡–ǡ
‡…‘‘‹…•–ƒ„‹Ž‹–›ǡƒ†‹…‘‡†‹•–”‹„—–‹‘ǤŠ‡„Œ‡…–‹˜‡•‘ˆ–ƒšƒ–‹‘‹„”‹‡ˆƒ”‡ƒ•—†‡”ǣǦ
Ȉ Revenue: Š‹•‘„Œ‡…–‹˜‡‹•–Š‡‘Ž†‡•–ǡ—’’‡”‘•–ƒ†’”‹ƒ”›‘„Œ‡…–‹˜‡Ǥƒš‡•ƒ”‡‹’‘•‡†•‘ƒ•–‘’”‘†—…‡
–Š‡‡…‡••ƒ”›ƒ‘—–‘ˆ”‡˜‡—‡–‘‡‡––Š‡”‡“—‹”‡‡–‘ˆ–Š‡‰‘˜‡”‡–ǡƒ•–Š‡’—„Ž‹…‡š’‡†‹–—”‡‹•
‹…”‡ƒ•‹‰‹•…‘’‡ƒ†•‹œ‡†ƒ›„›†ƒ›ǤŠ‡”‡ˆ‘”‡ǡ–Š‡ƒ‹‘„Œ‡…–‹˜‡‘ˆ–ƒš‡•‹•–‘”ƒ‹•‡”‡˜‡—‡–‘‡‡––Š‡
‰‘˜‡”‡–‡š’‡†‹–—”‡•ƒ†‡“—ƒ–‡Ž›Ǥ
Ȉ Social objectives: ƒš‡•„‡…ƒ‡ƒƒ‹‰‘ƒŽˆ‘”•‘‡‘ˆ•‘…‹ƒŽ‘„Œ‡…–‹˜‡•Ǥ
ƒȌ Redistribution of income and wealth: …‘‡ †‹ˆˆ‡”• ˆ”‘ ‘‡ ’‡”•‘ –‘ ƒ‘–Š‡” ‹ –Š‡ •‘…‹‡–›ǡ
‹‡“—‹–› ‹ ‹…‘‡ Ž‡ƒ†• –‘ ƒ› ‡˜‹Ž•ǡ ƒ† –Š‡ ‰‘˜‡”‡– ƒ‹• –‘ ”‡†—…‡ ‹‡“—ƒŽ‹–‹‡• „‡–™‡‡
‡„‡”•‘ˆ–Š‡•‘…‹‡–›ǡ–‘•‡…—”‡•‘…‹ƒŽŒ—•–‹…‡Ǥƒš‹•ƒ‡ƒ•‘ˆ‡•—”‹‰–Š‡”‡†‹•–”‹„—–‹‘‘ˆ‹…‘‡
ƒ†™‡ƒŽ–Š‹‘”†‡”–‘”‡†—…‡’‘˜‡”–›ƒ†’”‘‘–‡•‘…‹ƒŽ™‡Žˆƒ”‡Ǥ ‘”ƒ…Š‹‡˜‹‰–Š‡•‡‰‘ƒŽ•‰‘˜‡”‡–
ƒ†‘’–•–Š‡ˆ‘ŽŽ‘™‹‰ǣ
‹Ǥ ’‘•‹–‹‘‘ˆŠ‹‰Š”ƒ–‡–ƒš—’‘Ž—š—”›…‘‘†‹–‹‡•Ǥ
‹‹Ǥ ’’Ž›‹‰’”‘‰”‡••‹˜‡–ƒš•›•–‡™Š‡Ž‡˜›‹‰–ƒš‡•ˆ”‘–ƒš’ƒ›‡”•Ǥ
‹‹‹Ǥ ’‘•‹–‹‘‘ˆ–ƒš‡š‡’–‹‘–‘„ƒ•‹…‰‘‘†•Ǥ
„Ȍ Social welfare: ‘…‹ƒŽ ™‡Žˆƒ”‡ ‹• –Š‡ „ƒ•‹… ‡‡† ‘ˆ –Š‡ •‘…‹‡–› ‹ –Š‡ ‘†‡” ƒ‰‡Ǥ Š‡ ‰‘˜‡”‡–
ˆ—…–‹‘• Šƒ˜‡ „‡…‘‡ ˜‡”› ‹’‘”–ƒ– –‘ –Š‡ •‘…‹‡–›ǡ „‡…ƒ—•‡ –Š‡ •‘…‹‡–› ‡‡†• •ƒ˜‹‰ǡ ’”‘–‡…–‹‘ǡ
‡†—…ƒ–‹‘ǡŠ‡ƒŽ–Šǡƒ†•‘‘ǤŽŽ–Š‡•‡ˆ—…–‹‘•ƒ”‡‡…‡••ƒ”›–‘ƒ‡•‘…‹ƒŽ™‡Žˆƒ”‡ǡ•‘–Š‡‰‘˜‡”‡–
”‡…‡‹˜‡•”‡˜‡—‡ˆ”‘–ƒšǡƒ†‡š’‡†•‹–ˆ‘”–Š‘•‡ˆ—…–‹‘•ǤŠ‡”‡ˆ‘”‡”‡˜‡—‡ˆ”‘–ƒš‡•‹•ˆ—‡Ž–‘
–Š‡ ‰‘˜‡”‡– ˆ‘” •‘…‹ƒŽ ™‡Žˆƒ”‡Ǥ ‘…‹ƒŽ ™‡Žˆƒ”‡ ‹• ‹†‹…ƒ–‘” ˆ‘” †‡˜‡Ž‘’‡– ‘ˆ –Š‡ …‘—–”‹‡•ǡ •‘
ƒŽ‘•–ƒŽŽ–Š‡…‘—–”‹‡•Šƒ˜‡…‘’‡–‹–‹‘–‘‹–”‘†—…‡–Š‡•‡•‡”˜‹…‡•‹–Š‡•‘…‹‡–‹‡•Ǥ
…Ȍ Safety of society from bad and injurious customs: ‹‰Š–‹‰ –Š‡ „ƒ† …—•–‘• ‹ –Š‡ •‘…‹‡–› ‹• –Š‡
’”‹ƒ”›–ƒ•‘ˆ–Š‡‰‘˜‡”‡–ǡ•‘–ƒš‹•ƒ–‘‘Žˆ‘”ϐ‹‰Š–‹‰•‘‡‘ˆ–Š‘•‡…—•–‘•Ǥ ”‘–Š‹•ƒ‰Ž‡–ƒš
‹’‘•‹–‹‘‘ˆ˜‡”›Š‹‰Š’‡”…‡–ƒ‰‡‘–Š‡‰‘‘†•Ž‹‡–‘„ƒ……‘ƒ†ƒŽ…‘Š‘Ž‹•ƒ‡ˆˆ‘”––‘”‡†—…‡–Š‡•‡Šƒ„‹–•Ǥ
Ȉ …‘‘‹…•‹‰‹ϐ‹…ƒ…‡‘ˆ–ƒš‡•ǣƒš‡•ƒ”‡—•‡†ˆ”‘‡…‘‘‹…’‘‹–‘ˆ˜‹‡™ǡ•‘–ƒšƒ–‹‘Š‡Ž’•–‘‡…‘—”ƒ‰‡
•‘‡‡…‘‘‹…ƒ…–‹˜‹–‹‡•ǡƒ†ƒ•ƒ–‘‘Ž–‘•‘Ž˜‡•‘‡‡…‘‘‹…•’”‘„Ž‡•Ǥƒš‹•ƒŽ•‘ƒ‡ƒ•ˆ‘”†‹”‡…–‹‰
‘ˆ•…ƒ”…‡‡…‘‘‹…ƒ…–‹˜‹–‹‡•Ǥƒšƒ–‹‘Š‡Ž’•–‘ƒ……‡Ž‡”ƒ–‡‡…‘‘‹…‰”‘™–Šǡƒ†–ƒšƒ–‹‘’Žƒ›•˜‡”›‹’‘”–ƒ–
”‘Ž‡‹…ƒ•‡‘ˆ‡…‘‘‹…•–ƒ„‹Ž‹–›Ǥ
Ȉ Economic growthǣƒš‡•ƒ”‡…‘•‹†‡”‡†ƒ•ƒ–‘‘Žˆ‘”‡…‘‘‹…‰”‘™–Šƒ†‹–Š‡Ž’•–‘ƒ……‡Ž‡”ƒ–‡‰”‘™–Š‘ˆ
‡…‘‘‹…†‡˜‡Ž‘’‡–Ǥ…‘‘‹…†‡˜‡Ž‘’‡–Šƒ•’Žƒ…‡†…‘•‹†‡”ƒ„Ž‡‡’Šƒ•‹•‘‘„Œ‡…–‹˜‡•‘ˆ–ƒšƒ–‹‘
’‘Ž‹…›Ǥ…‘‘‹…†‡˜‡Ž‘’‡–‹•–Š‡ƒ‹‘„Œ‡…–‹˜‡‹ƒŽŽ–Š‡…‘—–”‹‡•‘ˆ–Š‡™‘”Ž†Ǥ…‘‘‹…†‡˜‡Ž‘’‡–
†‡’‡†•‘‘„‹Ž‹œƒ–‹‘‘ˆ”‡•‘—”…‡•ƒ†‡ˆϐ‹…‹‡–—•‡‘ˆ•—…Š”‡•‘—”…‡•„‡–™‡‡†‹ˆˆ‡”‡–•‡…–‘”•‘ˆ–Š‡
‡…‘‘› ƒ…–‹˜‹–‹‡•Ǥ ƒš ’‘Ž‹…› —•– „‡ †‡•‹‰‡† •‘ ƒ• –‘ ‘„‹Ž‹œ‡ –Š‡ ‹–‡”ƒŽ ”‡•‘—”…‡• ƒ† —•‡ –Š‡•‡
”‡•‘—”…‡• ‹ ’”‘†—…–‹˜‡ ƒ‡”Ǥ ƒšƒ–‹‘ ’‘Ž‹…› Š‡Ž’• –‘ ‹…”‡ƒ•‡ ’”‘†—…–‹‘ –Š”‘—‰Š ”ƒ‹•‹‰ –Š‡ ”ƒ–‡ ‘ˆ
…ƒ’‹–ƒŽ ˆ‘”ƒ–‹‘ǡ •‘ ‹– Š‡Ž’• ‹’”‘˜‡ –Š‡ ‡…‘‘‹… ™‡Žˆƒ”‡ –Š”‘—‰Š „‡––‡” †‹•–”‹„—–‹‘ ‘ˆ ‹…‘‡ ƒ† ‹–
„‡…‘‡• ƒ ‹’‘”–ƒ– ‹•–”—‡– ˆ‘” ”‡‘˜‹‰ ”‡‰‹‘ƒŽ ‹‡“—ƒŽ‹–‹‡•Ǥ ƒš ’‘Ž‹…› ƒ› •‡”˜‡ †‹”‡…–Ž› –‘
‘„‹Ž‹œ‡”‡•‘—”…‡•ˆ‘”…ƒ’‹–ƒŽˆ‘”ƒ–‹‘‹–Š‡’—„Ž‹…•‡…–‘”ƒ†‹†‹”‡…–Ž›–‘’”‘‘–‡’”‹˜ƒ–‡•ƒ˜‹‰ƒ†
‹˜‡•–‡–Ǥ
Ȉ Enforcing Government Policyǣ
‘˜‡”‡–’‘Ž‹…›…ƒ„‡‡ƒ•‹Ž›‡ˆ‘”…‡†„›ƒ†‘’–‹‘‘ˆ•—‹–ƒ„Ž‡–ƒš’‘Ž‹…›Ǥ
Š‡
‘˜‡”‡– …ƒ ‡…‘—”ƒ‰‡ ‹˜‡•–‡–ǡ •ƒ˜‹‰ǡ …‘•—’–‹‘ǡ ‡š’‘”–ǡ ’”‘–‡…–‹‘ ‘ˆ Š‘‡ ‹†—•–”›ǡ
‡’Ž‘›‡–ǡ ’”‘†—…–‹‘ǡ ’”‘–‡…–‹‘ ‘ˆ •‘…‹‡–› ˆ”‘ Šƒ”ˆ—Ž …—•–‘•ǡ ƒ† ‡…‘‘‹… •–ƒ„‹Ž‹–› –Š”‘—‰Š
•—‹–ƒ„Ž‡–ƒš’‘Ž‹…›ǤŠ‡”‡ˆ‘”‡ǡ–Š‡‰‘˜‡”‡–‰‹˜‡•–ƒš‡š‡’–‹‘–‘–Š‡‹˜‡•–‡–ƒ†•ƒ˜‹‰Ǥ
Ȉ Directing limited scarce resources into effective and essential channelsǣƒš’‘Ž‹…›’Žƒ›•…”—…‹ƒŽ”‘Ž‡ˆ‘”
†‹”‡…–‹‰•…ƒ”…‡”‡•‘—”…‡•‹–‘‡••‡–‹ƒŽ…‘‘†‹–‹‡•ǤŠ‹•‹•ƒ…Š‹‡˜‡†„›‰‹˜‹‰–ƒš‡š‡’–‹‘–‘…‡”–ƒ‹
 Lesson 1 Ȉ Direct Taxes – At a Glance 7

‹†—•–”‹‡•ƒ†‹’‘•‹–‹‘‘ˆŠ‡ƒ˜›†—–‹‡•‘‘–Š‡”‹†—•–”‹‡•ǡ•‘™‹–Š–Š‡ƒ†‘’–‹‘‘ˆ•—‹–ƒ„Ž‡–ƒš’‘Ž‹…›ǡ
‡…‘‘‹… ”‡•‘—”…‡• ƒ› „‡ †‹˜‡”–‡† –‘ –Š‡ ’”‘†—…–‹‘ ‘ˆ ‡…‡••ƒ”› ƒ”–‹…Ž‡• ƒ† ‹˜‡•–‘”• ™‹ŽŽ ‰‘ –‘ –Š‡
‡š‡’–‹‘‹†—•–”‹‡•Ǥ
Ȉ Economic Stabilityǣƒ‹–ƒ‹‹‰‡…‘‘‹…•–ƒ„‹Ž‹–›‹•‘‡‘ˆ–Š‡–ƒš‘„Œ‡…–‹˜‡•Ǥ…‘‘‹…•–ƒ„‹Ž‹–›‹•ƒ˜‡”›
‹’‘”–ƒ– ˆƒ…–‘” ˆ‘” –Š‡ •—•–ƒ‹‡† ‡…‘‘‹… ‰”‘™–ŠǤ
‘˜‡”‡– …ƒ ‡ˆˆ‡…–‹˜‡Ž› —•‡ –ƒš‡• ‹ –Š‡ …ƒ•‡ ‘ˆ
‹ϐŽƒ–‹‘ƒ††‡’”‡••‹‘ǤŠ‡•‡ƒ›„‡‹…”‡ƒ•‡†‹‹ϐŽƒ–‹‘ƒ”›•‹–—ƒ–‹‘•Ǥ…”‡ƒ•‡‹–Š‡”ƒ–‡•‘ˆ‡š‹•–‹‰
–ƒš‡•ƒ†–Š‡‹’‘•‹–‹‘‘ˆ‡™–ƒš‡•™‘—Ž†…Š‡……‘•—’–‹‘ǡ†‡…”‡ƒ•‡–Š‡Ž‡˜‡Ž‘ˆ‡ˆˆ‡…–‹˜‡†‡ƒ†ƒ†
–Š‡”‡ˆ‘”‡Š‡Ž’‹„”‹‰‹‰—’•–ƒ„‹Ž‹–›‹’”‹…‡•Ǥ‡ƒ˜›–ƒšƒ–‹‘–”ƒ•ˆ‡”’—”…Šƒ•‹‰’‘™‡”ˆ”‘–Š‡Šƒ†‘ˆ
’‡‘’Ž‡–‘–Š‡‰‘˜‡”‡–™Š‹…Š‹ˆ—•‡†ˆ‘”’”‘†—…–‹˜‡’—”’‘•‡™‹ŽŽ‹…”‡ƒ•‡–Š‡Ž‡˜‡Ž‘ˆ‡…‘‘‹…ƒ…–‹˜‹–›
ƒ†‡’Ž‘›‡–Ǥ
–Š‡…ƒ•‡‘ˆ†‡’”‡••‹‘–ƒš‡•’Žƒ›ƒ‹’‘”–ƒ–”‘Ž‡Ǥ—”…Šƒ•‹‰’‘™‡”‹–Š‡Šƒ†•‘ˆ’‡‘’Ž‡‹•”‡†—…‡†ƒ†–Š‡›
ƒ”‡ƒ„Ž‡–‘•’‡†Ž‡••ƒ†–Š‡†‡ƒ†ˆ‘”…‘‘†‹–‹‡•ƒ†•‡”˜‹…‡•‹•”‡†—…‡†ǤŽŽ–Š‡•‡Ž‡ƒ†–‘ƒ•Š”‹ƒ‰‡‘ˆ
„—•‹‡••ƒ…–‹˜‹–›ƒ†‡’Ž‘›‡–Ǥ–Š‹•…ƒ•‡‰‘˜‡”‡–•Š‘—Ž†‹…”‡ƒ•‡–Š‡’—”…Šƒ•‹‰’‘™‡”‹–Š‡Šƒ†•‘ˆ
’—„Ž‹…–Š”‘—‰Š”‡†—…‹‰–Š‡„—”†‡‘ˆ–ƒšƒ–‹‘‘–Š‡’‡‘’Ž‡ƒ†‹’‘•‡–ƒš—’‘•ƒ˜‹‰ƒ†Š‘ƒ”†‹‰•‘–Šƒ–
’‡‘’Ž‡ ƒ› „‡ ‡…‘—”ƒ‰‡† –‘ •’‡† ‘”‡ ƒ† –Š—• Š‡Ž’ –‘ …”‡ƒ–‡ ‘”‡ †‡ƒ† ˆ‘” ‰‘‘†• ƒ† ‘”‡ „—•‹‡••
ƒ…–‹˜‹–›ƒ†‡’Ž‘›‡–Ǥ

DIRECT VS INDIRECT TAXES

Advantages
Ȉ ƒ•‡†‘’”‹…‹’Ž‡‘ˆ
‡“—‹–›ǡ…‡”–ƒ‹–›ƒ†
‡…‘‘›
Ȉ ‘˜‡‹‡––‘–ƒš’ƒ›‡”
Ȉ …–•ƒ•ƒ—–‘ƒ–‹…
•–ƒ„‹Ž‹•‡”
Advantages
Ȉ ‘•–‘ˆ…‘ŽŽ‡…–‹‘‹•Ž‘™
Types of Taxation ȋ…‘‘›Ȍ
Ȉ ƒ•‹‡”–‘‡š–”ƒ…–ˆ”‘–Š‡
’—„Ž‹…ȋŽ‡•••‡•‹–‹˜‡Ȍ
DIRECT INDIRECT Ȉ ‘‡•ǯ–†‹•…‘—”ƒ‰‡™‘”
Ȉ …–•ƒ•ƒ—–‘ƒ–‹…•–ƒ„‹Ž‹•‡”
…‘‡ƒš

‘”’‘”ƒ–‹‘ƒš —•–‘—–‹‡•
Disadvantages Disadvantages
ƒ’‹–ƒŽ
ƒ‹•ƒš
Ȉ •‹–”‹•‡•ǡ™‘”‹• Ȉ ϐŽƒ–‹‘ƒ”›Ȁ‡ϐŽƒ–‹‘ƒ”›
†‹•…‘—”ƒ‰‡†ȋƒ„•‡–‡‡‹• ƒ’‹–ƒŽ
„‡…‘‡•ƒ’”‘„Ž‡Ȍ …“—‹•‹–‹‘•ƒš Ȉ ‘–‡“—‹–ƒ„Ž‡
Ȉ ƒš‡˜ƒ•‹‘”‹•‡• Ȉ ƒ”†–‘’”‡†‹…–›‹‡Ž†ȋ„ƒ•‡†
Ȉ ƒ†‹•…‘—”ƒ‰‡‹˜‡•–‡– ‘ƒ••—’–‹‘•‘ˆ
…‘•—‡”•’‡†‹‰Ȍ

Direct Taxesǣƒš‡•™Š‹…Šƒ”‡†‹”‡…–Ž›Ž‡˜‹‡†‘…‘‡‘ˆ–Š‡’‡”•‘ƒ†‹–•„—”†‡…ƒ‘–„‡•Š‹ˆ–‡†Ǣˆ‘”

‡šƒ’Ž‡…‘‡ƒšǤ
Indirect Taxesǣ†‹”‡…––ƒš‡•ƒ”‡‹’‘•‡†‘’”‹…‡‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǥ‡”•‘’ƒ›‹‰–Š‡‹†‹”‡…––ƒš…ƒ•Š‹ˆ–
–Š‡‹…‹†‡…‡–‘ƒ‘–Š‡”’‡”•‘Ǣˆ‘”‡šƒ’Ž‡
‘”—•–‘•—–›Ǥ

‘Šƒ˜‡ƒ„‡––‡”—†‡”•–ƒ†‹‰‘ˆ–Š‡‹”‡…–ƒ††‹”‡…–ƒš‡•ǡŽ‡–—•—†‡”•–ƒ†–Š‡†‹ˆˆ‡”‡…‡•„‡–™‡‡–Š‡–™‘ǣ
Differences between Direct and Indirect Taxes

Point of difference Direct Tax Indirect Tax

…‹†‡…‡Ƭ’ƒ…–  –ƒš ‹• •ƒ‹† –‘ „‡ †‹”‡…– ™Š‡ ‹’ƒ…– ƒ† ˆ‹’ƒ…–‘ˆ–ƒš‹•‘‘‡’‡”•‘ƒ†‹…‹†‡…‡
‹…‹†‡…‡‘ˆƒ–ƒšƒ”‡‘‘‡ƒ†•ƒ‡’‡”•‘Ǥ ‘–Š‡ƒ‘–Š‡”ǡ–Š‡–ƒš‹•…ƒŽŽ‡† Ǯ‹†‹”‡…–ǯ
—”†‡ ‹”‡…– –ƒš ‹• ‹’‘•‡† ‘ –Š‡ ‹†‹˜‹†—ƒŽ †‹”‡…––ƒš‹•‹’‘•‡†‘…‘‘†‹–‹‡• ƒ†
‘”‰ƒ‹•ƒ–‹‘ ƒ† „—”†‡ ‘ˆ –ƒš …ƒ‘– „‡ ƒŽŽ‘™•–Š‡–ƒš„—”†‡–‘•Š‹ˆ–Ǥ
•Š‹ˆ–‡†–‘‘–Š‡”•Ǥ
 8 Lesson 1 Ȉ EP-TL

‹ƒ„‹Ž‹–›‘ˆ’ƒ›‡– ‹”‡…– –ƒš‡• ƒ”‡ Ž‡••‡” „—”†‡ –Š‡ †‹”‡…– †‹”‡…––ƒš‡•ƒ”‡„‘”‡„›–Š‡…‘•—‡”• ‘ˆ
–ƒš‡•–‘’‡‘’Ž‡ ƒ• †‹”‡…– –ƒš‡•ƒ”‡ „ƒ•‡† ‘ …‘‘†‹–‹‡• ƒ† •‡”˜‹…‡• ””‡•’‡…–‹˜‡ ‘ˆ
…‘‡‡ƒ”‹‰ƒ„‹Ž‹–›‘ˆ’‡‘’Ž‡Ǥ ϐ‹ƒ…‹ƒŽƒ„‹Ž‹–›ƒ•–Š‡…Ž—†‡•ƒŽŽ–ƒš‡•Ǥ
†‹‹•–”ƒ–‹˜‡ Š‡ ƒ†‹‹•–”ƒ–‹˜‡ …‘•– ‘ˆ …‘ŽŽ‡…–‹‰ †‹”‡…– ‘•–‘ˆ…‘ŽŽ‡…–‹‰†‹”‡…––ƒš‡•‹•˜‡”›Ž‡••ƒ•
˜‹ƒ„‹Ž‹–› –ƒš‡• ‹• ‘”‡ ƒ† ’”‘’‡” ƒ†‹‹•–”ƒ–‹‘ ‹†‹”‡…– –ƒš‡• ƒ”‡ ™”ƒ’’‡† —’ ‹ ’”‹…‡• ‘ˆ
ƒ›”‡•—Ž–‹–ƒš‡˜ƒ•‹‘Ǥ ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ† …ƒ‘–„‡‡˜ƒ†‡†Ǥ
‡ƒŽ–› –‹•Ž‡˜‹‡†‘–Š‡ƒ••‡••‡‡Ǥ –‹•Ž‡˜‹‡†‘•—’’Ž‹‡”‘ˆ
‘‘†•Ƭ ‡”˜‹…‡•Ǥ

Merits of Direct Tax

ͳǤ Equityǣ ‹”‡…– –ƒš‡• Šƒ˜‡ ‡“—‹–› ‘ˆ •ƒ…”‹ϐ‹…‡ǡ †‡’‡† —’‘ –Š‡ ˜‘Ž—‡ ‘ˆ ‹…‘‡Ǥ Š‡› ƒ”‡ „ƒ•‡† ‘ –Š‡
’”‘‰”‡••‹˜‡’”‹…‹’Ž‡ǡ•‘”ƒ–‡•‘ˆ–ƒš‹…”‡ƒ•‡ƒ•–Š‡Ž‡˜‡Ž‘ˆ‹…‘‡‘ˆƒ’‡”•‘”‹•‡•Ǥ
ʹǤ Elasticity and productivityǣ‹”‡…––ƒš‡•Šƒ˜‡‡Žƒ•–‹…‹–›„‡…ƒ—•‡™Š‡–Š‡‰‘˜‡”‡–ˆƒ…‡••‘‡‡‡”‰‡…›ǡ
Ž‹‡‡ƒ”–Š“—ƒ‡ǡϐŽ‘‘†•ƒ†ˆƒ‹‡–Š‡‰‘˜‡”‡–…ƒ…‘ŽŽ‡…–‘‡›ˆ‘”ˆƒ…‹‰–Š‘•‡’”‘„Ž‡•„›†‹”‡…––ƒšǤ
͵Ǥ Certaintyǣ‹”‡…––ƒš‡•Šƒ˜‡…‡”–ƒ‹–›‘„‘–Š•‹†‡•Ǯ–ƒšǦ’ƒ›‡”ǯƒ†Ǯ‰‘˜‡”‡–ǯǤŠ‡–ƒšǦ’ƒ›‡”•ƒ”‡ƒ™ƒ”‡
‘ˆ–Š‡“—ƒ–‹–›‘ˆ–ƒšǤŠ‡›Šƒ˜‡–‘’ƒ›ƒ†”ƒ–‡ǡ–‹‡‘ˆ’ƒ›‡–ǡƒ‡”‘ˆ’ƒ›‡–ǡƒ†’—‹•Š‡–ˆ”‘
–Š‡•‹†‡‘ˆ‰‘˜‡”‡–‹•ƒŽ•‘…‡”–ƒ‹ƒ„‘—––Š‡–‘–ƒŽƒ‘—––Š‡›ƒ”‡‰‡––‹‰Ǥ
ͶǤ Reduce inequalityǣ‹”‡…––ƒš‡•ˆ‘ŽŽ‘™’”‘‰”‡••‹˜‡’”‹…‹’Ž‡••‘‹–‹•–ƒš‹‰–Š‡”‹…Š’‡‘’Ž‡™‹–ŠŠ‹‰Š‡”Ž‡˜‡Ž
‘ˆ–ƒšƒ–‹‘ƒ†–Š‡’‘‘”’‡‘’Ž‡™‹–ŠƒŽ‘™‡”Ž‡˜‡Ž‘ˆ–ƒšƒ–‹‘Ǥ
ͷǤ
‘‘†‹•–”—‡–‹–Š‡…ƒ•‡‘ˆ‹ϐŽƒ–‹‘ǣƒš’‘Ž‹…›ƒ•ϐ‹•…ƒŽ‹•–”—‡–’Žƒ›•‹’‘”–ƒ–”‘Ž‡‹–Š‡…ƒ•‡‘ˆ
‹ϐŽƒ–‹‘ǡ•‘‰‘˜‡”‡–…ƒƒ„•‘”„–Š‡‡š…‡••‘‡›„›”ƒ‹•‹‰‹–Š‡”ƒ–‡‘ˆ‡š‹•–‹‰–ƒš‡•‘”‹’‘•‹–‹‘‘ˆ
‡™–ƒš‡•Ǥ
͸Ǥ Simplicityǣ‹”‡…––ƒš‡•ƒ”‡•‹’Ž‡ǡ™Š‹Ž‡Ž‡˜›–Š‡”—Ž‡•ǡ’”‘…‡†—”‡•ǡ”‡‰—Žƒ–‹‘•‘ˆ‹…‘‡–ƒšƒ”‡˜‡”›…Ž‡ƒ”
ƒ†•‹’Ž‡Ǥ

Demerits of Direct Taxes

ͳǤ Evasion:‹”‡…––ƒš‹•Ž—’•—–Š‡”‡ˆ‘”‡–ƒš’ƒ›‡”•–”›‡˜ƒ•‹‘Ǥ
ʹǤ Uneconomically: š’‡•‡•‘ˆ…‘ŽŽ‡…–‹‘ƒ”‡Š‹‰Š‡”‹–Š‡…ƒ•‡‘ˆ†‹”‡…––ƒš‡•ǡ„‡…ƒ—•‡–Š‡›”‡“—‹”‡™‹†‡ŽǦ
•’”‡ƒ†•–ƒˆˆˆ‘”…‘ŽŽ‡…–‹‘Ǥ
͵Ǥ Unpopular: ‹”‡…––ƒš‹•”‡“—‹”‡†–‘„‡’ƒ‹†‹Ž—’•—ˆ‘”–Š‡™Š‘Ž‡›‡ƒ”ǡ•‘–Š‡–ƒš’ƒ›‡”•ˆ‡‡Ž–Š‡’ƒ‹ˆ—Ž
’ƒ›‡–ǡ–Š‡•‡–ƒš‡•ƒ”‡–Š‡”‡ˆ‘”‡—’‘’—Žƒ”Ǥ
ͶǤ Little incentive to work and save: †‹”‡…– –ƒš‡•ǡ”ƒ–‡•ƒ”‡‘ˆ’”‘‰”‡••‹˜‡ƒ–—”‡Ǥ ’‡”•‘™‹–ŠŠ‹‰Š‡”
‡ƒ”‹‰‹•–ƒš‡†‘”‡ǡ‹–—”Š‡‹•Ž‡ˆ–Ž‹––Ž‡™‹–Šƒ‘—–Ǥ‘–Š‡–ƒš’ƒ›‡”ˆ‡‡Ž•†‹•‹…‡–‹˜‡–‘™‘”Šƒ”†ƒ†
•ƒ˜‡‘‡›ƒˆ–‡””‡ƒ…Š‹‰ƒ…‡”–ƒ‹Ž‡˜‡Ž‘ˆ‹…‘‡Ǥ
ͷǤ Not suitable for a poor country: ‹”‡…––ƒš‡•ƒ”‡‘–‡‘—‰Š–‘‡‡–‹–•‡š’‡†‹–—”‡Ǥ
͸Ǥ Arbitrary: —‡ –‘ ƒ„•‡…‡ ‘ˆ Ž‘‰‹…ƒŽ ‘” •…‹‡–‹ϐ‹… ’”‹…‹’Ž‡ –‘ †‡–‡”‹‡ –Š‡ †‡‰”‡‡ ‘ˆ ’”‘‰”‡••‹‘ ‹ –Š‡
–ƒšƒ–‹‘ǡ–Š‡†‹”‡…––ƒš‡•ƒ”‡ƒ”„‹–”ƒ”›Ǥ

Merits of Direct Taxes Demerits of Direct Taxes

 “—‹–›  ˜ƒ•‹‘
 Žƒ•–‹…‹–›ƒ†”‘†—…–‹˜‹–›  ‡…‘‘‹…ƒŽŽ›
 ‡”–ƒ‹–›  ’‘’—Žƒ”
 ‡†—…‡‹‡“—ƒŽ‹–›  ”„‹–”ƒ”›
 ‹’Ž‹…‹–›  ‘–•—‹–ƒ„Ž‡–‘’‘‘”‡…‘‘›
 Lesson 1 Ȉ Direct Taxes – At a Glance 9

Merits of Indirect Taxes

ͳǤ High revenue production: ƒ–—”‡ ‘ˆ ‹†‹”‡…– –ƒš‡• ‹• ‹’‘•‹–‹‘ ‘ –Š‡ …‘‘†‹–‹‡• ƒ† •‡”˜‹…‡•Ǥ ‡”‡
‹†‹”‡…––ƒš‡•…‘˜‡”ƒŽƒ”‰‡—„‡”‘ˆ‡••‡–‹ƒŽ‰‘‘†•ƒ†Ž—š—”‹‘—•‰‘‘†•™Š‹…Šƒ”‡…‘•—‡†„›–Š‡ƒ••
„‘–Š”‹…Šƒ†’‘‘”’‡‘’Ž‡ǡ–Š‡•‡Š‡Ž’‹…‘ŽŽ‡…–‹‰Žƒ”‰‡”‡˜‡—‡Ǥ
ʹǤ No evasion: ƒ–—”‡ ‘ˆ ‹†‹”‡…– –ƒš ‹• –Šƒ–ǡ ‹– ‹• ‹…Ž—†‡† ‹ –Š‡ ’”‹…‡ ‘ˆ …‘‘†‹–›ǡ •‘ –ƒš ‡˜ƒ•‹‘ ‘” –ƒš
ƒ˜‘‹†ƒ…‡‹•†‹ˆϐ‹…—Ž–Ǥ
͵Ǥ Convenient:†‹”‡…––ƒš‡•ƒ”‡•ƒŽŽƒ‘—–ƒ†‹†‹”‡…––ƒš‡•ƒ”‡Š‹††‡‹–Š‡’”‹…‡‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ǡ
Š‡…‡–Š‡„—”†‡‘ˆ–Š‡•‡–ƒš‡•‹•‘–ˆ‡Ž–˜‡”›—…Š„›–Š‡–ƒšǦ’ƒ›‡”•ǡƒ†‘–Ž—’•—Ž‹‡†‹”‡…––ƒš‡•Ǥ
ͶǤ Economy: †‹”‡…––ƒš‡•ƒ”‡‡…‘‘‹…ƒŽ‹…‘ŽŽ‡…–‹‘ƒ†–Š‡ƒ†‹‹•–”ƒ–‹˜‡…‘•–•‘ˆ…‘ŽŽ‡…–‹‘ƒ”‡˜‡”›Ž‘™ǡ
ƒŽ•‘–Š‡’”‘…‡†—”‡‘ˆ…‘ŽŽ‡…–‹‘‘ˆ–Š‡•‡–ƒš‡•‹•˜‡”›•‹’Ž‡Ǥ
ͷǤ Wide coverage: †‹”‡…– –ƒš‡• …‘˜‡” ƒŽ‘•– ƒŽŽ …‘‘†‹–‹‡• Ž‹‡ ‡••‡–‹ƒŽ …‘‘†‹–‹‡•ǡ Ž—š—”‹‡•ǡ ƒ†
Šƒ”ˆ—Ž‘‡•Ǥ
͸Ǥ Elasticity:‹…‡ƒŽƒ”‰‡—„‡”‘ˆ…‘‘†‹–‹‡•ƒ†•‡”˜‹…‡•ƒ”‡…‘˜‡”‡†„›‹†‹”‡…––ƒšƒ–‹‘–Š‡”‡‹•‰”‡ƒ–
•…‘’‡ˆ‘”‘†‹ˆ›‹‰‘ˆ–ƒš‡•ǡ‰‘‘†•ƒ†–ƒš”ƒ–‡ǡ—…Š†‡’‡†•‘ƒ–—”‡‘ˆ‰‘‘†•ƒ†‘–Š‡‹”†‡ƒ†•Ǥ

Demerits of Indirect Taxes

ͳǤ Regressive in effect: ••‡–‹ƒŽ …‘‘†‹–‹‡• ƒ”‡ —•‡† „› ƒŽŽ ‡„‡”• ‘ˆ …‘—‹–›Ǥ Š‡ –ƒš‹‰ –Š‡•‡
…‘‘†‹–‹‡•–Š‡„—”†‡™‘—Ž†„‡‡“—ƒŽǡƒ†‘†‹•–‹…–‹‘‹•ƒ†‡„‡–™‡‡–Š‡”‹…Šƒ†’‘‘”’‡‘’Ž‡Ǥ
ʹǤ Uncertainty in collection:‹•…‘—”ƒ‰‡•ƒ˜‹‰•ƒ†…”‡ƒ•‡‹ϐŽƒ–‹‘Ǥ†‹”‡…––ƒš‡•ƒ”‡’ƒ›ƒ„Ž‡™Š‡’‡‘’Ž‡
•’‡†–Š‡‹”‹…‘‡‘”™Š‡’‡‘’Ž‡„—›‰‘‘†•ƒ†•‡”˜‹…‡•ǡ•‘–ƒšƒ—–Š‘”‹–‹‡•…ƒ‘–ƒ……—”ƒ–‡Ž›‡•–‹ƒ–‡–Š‡
–‘–ƒŽ›‹‡Ž†ˆ”‘†‹ˆˆ‡”‡–‹†‹”‡…––ƒš‡•Ǥ
͵Ǥ Discourage savings Ǧ…”‡ƒ•‡‹ϐŽƒ–‹‘ǣ†‹”‡…––ƒš‡•ƒ”‡‹…Ž—†‡†‹–Š‡’”‹…‡‘ˆ…‘‘†‹–›ǡ•‘’‡‘’Ž‡
Šƒ˜‡ –‘ •’‡† ‘”‡ ‘‡› ‘ ‡••‡–‹ƒŽ …‘‘†‹–‹‡•ǡ ™Š‡ Ž‡˜‹‡† ‹†‹”‡…–Ž›Ǥ  –Š‹• …ƒ•‡ –Šƒ– ‡ƒ• –Š‡
…—•–‘‡”•…ƒ‘–•ƒ˜‡•‘‡‘ˆ–Š‡‹”‘‡›Ǥ
ͶǤ …”‡ƒ•‡‹ϐŽƒ–‹‘ǣ†‹”‡…––ƒš‡•‹…”‡ƒ•‡–Š‡…‘•–‘ˆ‹’—–ƒ†‘—–’—–ǡ‹…”‡ƒ•‡‹’”‘†—…–‹‘…‘•–ǡ’—•Š–Š‡
’”‹…‡‘ˆ‰‘‘†•ǤŠ‡•‡”‡ϐŽ‡…–‹‹…”‡ƒ•‡‹–Š‡™ƒ‰‡•‘ˆ–Š‡™‘”‡”•Ǥ

Merits of Indirect Tax Demerits of Indirect Tax

 ‹‰Š‡˜‡—‡”‘†—…–‹‘  ‡‰”‡••‹˜‡‹‡ˆˆ‡…–
 ‘˜ƒ•‹‘  …‡”–ƒ‹–›‹…‘ŽŽ‡…–‹‘
 ‘˜‡‹‡–  ‹•…‘—”ƒ‰‡•ƒ˜‹‰•
 …‘‘›  …”‡ƒ•‡‹ϐŽƒ–‹‘
 ‹†‡…‘˜‡”ƒ‰‡
 Žƒ•–‹…‹–›

BACKGROUND OF TAXATION SYSTEM IN INDIA

Taxation in India during Ancient Times
†‹ƒǡ–Š‡•›•–‡‘ˆ†‹”‡…––ƒšƒ–‹‘ƒ•‹–‹•‘™–‘†ƒ›ǡŠƒ˜‡„‡‡‹ˆ‘”…‡‹‘‡ˆ‘”‘”ƒ‘–Š‡”‡˜‡ˆ”‘
ƒ…‹‡––‹‡•ǤŠ‡”‡ƒ”‡”‡ˆ‡”‡…‡•„‘–Š‹ƒ—”‹–‹ƒ†”–Šƒ•ƒ•–”ƒ–‘ƒ˜ƒ”‹‡–›‘ˆ–ƒš‡ƒ•—”‡•Ǥ
 10 Lesson 1 Ȉ EP-TL

ƒ—ǡ –Š‡ ƒ…‹‡– •ƒ‰‡ ƒ† Žƒ™Ǧ‰‹˜‡” •–ƒ–‡† –Šƒ– –Š‡ ‹‰ …‘—Ž† Ž‡˜› –ƒš‡•ǡ ƒ……‘”†‹‰ –‘ ƒ•–”ƒ•Ǥ Š‡ ™‹•‡ •ƒ‰‡
ƒ†˜‹•‡†–Šƒ––ƒš‡••Š‘—Ž†„‡”‡Žƒ–‡†–‘–Š‡‹…‘‡ƒ†‡š’‡†‹–—”‡‘ˆ–Š‡•—„Œ‡…–Ǥ‡ǡŠ‘™‡˜‡”ǡ…ƒ—–‹‘‡†–Š‡‹‰
ƒ‰ƒ‹•– ‡š…‡••‹˜‡ –ƒšƒ–‹‘ ƒ† •–ƒ–‡† –Šƒ– „‘–Š ‡š–”‡‡• •Š‘—Ž† „‡ ƒ˜‘‹†‡† ƒ‡Ž› ‡‹–Š‡” …‘’Ž‡–‡ ƒ„•‡…‡ ‘ˆ
–ƒš‡•‘”‡š‘”„‹–ƒ––ƒšƒ–‹‘Ǥ……‘”†‹‰–‘Š‹ǡ–Š‡‹‰•Š‘—Ž†ƒ””ƒ‰‡–Š‡…‘ŽŽ‡…–‹‘‘ˆ–ƒš‡•‹•—…Šƒƒ‡”–Šƒ–
–Š‡•—„Œ‡…–•†‘‘–ˆ‡‡Ž–Š‡’‹…Š‘ˆ’ƒ›‹‰–ƒš‡•Ǥ
‡Žƒ‹††‘™–Šƒ––”ƒ†‡”•ƒ†ƒ”–‹•ƒ••Š‘—Ž†’ƒ›ͳȀͷ–Š‘ˆ–Š‡‹”’”‘ϐ‹–•‹•‹Ž˜‡”ƒ†‰‘Ž†ǡ™Š‹Ž‡–Š‡ƒ‰”‹…—Ž–—”‹•–•
™‡”‡–‘’ƒ›ͳȀ͸–ŠǡͳȀͺ–Šƒ†ͳȀͳͲ–Š‘ˆ–Š‡‹”’”‘†—…‡†‡’‡†‹‰—’‘–Š‡‹”…‹”…—•–ƒ…‡•Ǥ
Š‡†‡–ƒ‹Ž‡†ƒƒŽ›•‹•‰‹˜‡„›ƒ—”‹–‹ƒ†”–Šƒ•ƒ•–”ƒ‘–Š‡•—„Œ‡…–…Ž‡ƒ”Ž›•Š‘™•–Š‡‡š‹•–‡…‡‘ˆƒ™‡ŽŽǦ
’Žƒ‡† –ƒšƒ–‹‘ •›•–‡ǡ ‡˜‡ ‹ ƒ…‹‡– –‹‡•Ǥ ƒš‡• ™‡”‡ ’ƒ‹† ‹ –Š‡ •Šƒ’‡ ‘ˆ ‰‘Ž†Ǧ…‘‹•ǡ …ƒ––Ž‡ǡ ‰”ƒ‹•ǡ ”ƒ™Ǧ
ƒ–‡”‹ƒŽ•ƒ†ƒŽ•‘„›”‡†‡”‹‰’‡”•‘ƒŽ•‡”˜‹…‡Ǥ‘•–‘ˆ–Š‡–ƒš‡•‘ˆ…‹‡–†‹ƒ™‡”‡Š‹‰ŠŽ›’”‘†—…–‹˜‡ǤŠ‡
ƒ†‹š–—”‡‘ˆ†‹”‡…––ƒš‡•™‹–Š‹†‹”‡…––ƒš‡••‡…—”‡†‡Žƒ•–‹…‹–›‹–Š‡–ƒš•›•–‡ǡƒŽ–Š‘—‰Š‘”‡‡’Šƒ•‹•™ƒ•Žƒ‹†
‘†‹”‡…––ƒšǤŠ‡–ƒšǦ•–”—…–—”‡™ƒ•ƒ„”‘ƒ†„ƒ•‡†‘‡ƒ†…‘˜‡”‡†‘•–’‡‘’Ž‡™‹–Š‹‹–•ˆ‘Ž†ǤŠ‡–ƒš‡•™‡”‡
˜ƒ”‹‡†ƒ†–Š‡Žƒ”‰‡˜ƒ”‹‡–›‘ˆ–ƒš‡•”‡ϐŽ‡…–‡†–Š‡Ž‹ˆ‡‘ˆƒŽƒ”‰‡ƒ†…‘’‘•‹–‡’‘’—Žƒ–‹‘Ǥ

Establishment of Income tax in Modern India

Income Tax Act, 1860

‘•‡“—‡–—’‘–Š‡ϐ‹ƒ…‹ƒŽ†‹ˆϐ‹…—Ž–‹‡•…”‡ƒ–‡†„›–Š‡‡˜‡–•‘ˆͳͺͷ͹Ǥ…‘‡ƒš™ƒ•‹–”‘†—…‡†‹†‹ƒˆ‘”–Š‡

ϐ‹”•––‹‡„›–Š‡”‹–‹•Š‹–Š‡›‡ƒ”ͳͺ͸ͲǤŠ‡…–‘ˆͳͺ͸Ͳ™ƒ•’ƒ••‡†‘Ž›ˆ‘”ϐ‹˜‡›‡ƒ”•ƒ†–Š‡”‡ˆ‘”‡‹–Žƒ’•‡†‹
ͳͺ͸ͷǤ–™ƒ•”‡’Žƒ…‡†‹ͳͺ͸͹„›ƒŽ‹…‡…‡–ƒš‘’”‘ˆ‡••‹‘•ƒ†–”ƒ†‡•ƒ†–Š‡Žƒ––‡”™ƒ•…‘˜‡”–‡†‹–‘ƒ…‡”–‹ϐ‹…ƒ–‡
–ƒš‹–Š‡ˆ‘ŽŽ‘™‹‰›‡ƒ”Ǥ–™ƒ•Žƒ––‡”ƒ„‘Ž‹•Š‡†‹ͳͺ͹͵Ǥ‹…‡…‡–ƒš–”ƒ†‡”•”‡ƒ‹‡†‹‘’‡”ƒ–‹‘–‹ŽŽͳͺͺ͸™Š‡
‹–™ƒ•‡”‰‡†‹–Š‡…‘‡–ƒš…–‘ˆ–Šƒ–›‡ƒ”Ǥ
Income Tax Act, 1886

Š‡…–‘ˆͳͺͺ͸Ž‡˜‹‡†ƒ–ƒš‘–Š‡‹…‘‡‘ˆ”‡•‹†‡–•ƒ•™‡ŽŽƒ•‘”‡•‹†‡–•‹†‹ƒǤŠ‡…–†‡ϐ‹‡†ƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡ƒ†‡š‡’–‡†‹–ˆ”‘–ƒšŽ‹ƒ„‹Ž‹–›‹˜‹‡™‘ˆ–Š‡ƒŽ”‡ƒ†›‡š‹•–‹‰Žƒ†”‡˜‡—‡ƒ‹†‘ˆ†‹”‡…––ƒš‡•ǤŠ‡…–
‘ˆͳͺͺ͸‡š‡’–‡†Ž‹ˆ‡‹•—”ƒ…‡’”‡‹—•’ƒ‹†„›ƒ••‡••‡’‘Ž‹…‹‡•‘ˆŠ‹•‘™Ž‹ˆ‡Ǥ‘–Š‡”‹’‘”–ƒ–’”‘˜‹•‹‘‘ˆ
–Š‹•…–‹†——†‹˜‹†‡†ˆƒ‹Ž›™ƒ•–”‡ƒ–‡†ƒ•ƒ†‹•–‹…––ƒšƒ„Ž‡‡–‹–›Ǥ
Income Tax Act, 1918

Š‡…–‘ˆͳͻͳͺ„”‘—‰Š–—†‡”…Šƒ‰‡ƒŽ•‘”‡…‡‹’–•‘ˆ…ƒ•—ƒŽ‘”‘”‡…—””‹‰ƒ–—”‡’‡”–ƒ‹‹‰–‘„—•‹‡••‘”
’”‘ˆ‡••‹‘•ǤŽ–Š‘—‰Š‹…‘‡–ƒš‹†‹ƒŠƒ•„‡‡ƒ…Šƒ”‰‡‘‡–‹…‘‡•‹…‡‹…‡’–‹‘ǡ‹–™ƒ•‹–Š‡…–‘ˆͳͻͳͺ
–Šƒ– •’‡…‹ϐ‹… ’”‘˜‹•‹‘• ™‡”‡ ‹•‡”–‡† ˆ‘” –Š‡ ϐ‹”•– –‹‡ ’‡”–ƒ‹‹‰ –‘ „—•‹‡•• †‡†—…–‹‘• ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ
…‘’—–‹‰‡–‹…‘‡Ǥ
Š‡…–‘ˆͳͻͳͺ”‡ƒ‹‡†‹ˆ‘”…‡ˆ‘”ƒ•Š‘”–’‡”‹‘†ƒ†™ƒ•”‡’Žƒ…‡†„›‡™…–ȋ…–‘ˆͳͻʹʹȌ‹˜‹‡™‘ˆ–Š‡
”‡ˆ‘”•‹–”‘†—…‡†„›–Š‡
‘˜–Ǥ‘ˆ†‹ƒ…–ǡͳͻͳͻǤ
Income Tax Act, 1922

Š‡‘”‰ƒ‹œƒ–‹‘ƒŽŠ‹•–‘”›‘ˆ–Š‡‹…‘‡–ƒš†‡’ƒ”–‡–†ƒ–‡•„ƒ…–‘–Š‡›‡ƒ”ͳͻʹʹǤDz‡‘ˆ–Š‡‹’‘”–ƒ–ƒ•’‡…–•
‘ˆ–Š‡ͳͻʹʹ…–™ƒ•–Šƒ–ǡ‹–Žƒ‹††‘™–Š‡„ƒ•‹•ǡ–Š‡‡…Šƒ‹•‘ˆƒ†‹‹•–‡”‹‰–Š‡–ƒšƒ†–Š‡”ƒ–‡•ƒ–™Š‹…Š–Š‡
–ƒš™ƒ•–‘„‡Ž‡˜‹‡†™‘—Ž†„‡Žƒ‹††‘™‹ƒ—ƒŽϐ‹ƒ…‡ƒ…–•ǤŠ‹•‹•’”‘…‡†—”‡„”‘—‰Š–‹–Š‡—…Š‡‡†‡†‹
ƒ†Œ—•–‹‰–Š‡–ƒš”ƒ–‡•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ƒ—ƒŽ„—†‰‡–ƒ”›”‡“—‹”‡‡–•ƒ†‹•‡…—”‹‰ƒ†‡‰”‡‡‘ˆ‡Žƒ•–‹…‹–›
ˆ‘”–Š‡–ƒš•›•–‡Ǥ‡ˆ‘”‡ͳͻʹʹ–Š‡–ƒš”ƒ–‡™‡”‡†‡–‡”‹‡†„›–Š‡…‘‡ƒš…–‹–•‡Žˆƒ†–‘”‡˜‹•‡–Š‡”ƒ–‡•ǡ–Š‡
…–‹–•‡ŽˆŠƒ†–‘„‡ƒ‡†‡†ǤŠ‡…‘‡ƒš…–ǡͳͻʹʹ‰ƒ˜‡ˆ‘”ϐ‹”•––‹‡ƒ•’‡…‹ϐ‹…‘‡…Žƒ–—”‡–‘˜ƒ”‹‘—•‹…‘‡
–ƒšƒ—–Š‘”‹–‹‡•ƒ†Žƒ‹†–Š‡ˆ‘—†ƒ–‹‘‘ˆƒ’”‘’‡”•›•–‡‘ˆƒ†‹‹•–”ƒ–‹‘ƒ•’‡”’”‘˜‹•‹‘•‘ˆ…‘‡ƒš…–
ͳͻʹʹ–Š—•ǡ‹–‹•–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǡ™Š‹…Š‹•…—””‡–Ž›‘’‡”ƒ–‹˜‡‹†‹ƒǤ
Income Tax Act, 1961

Š‡’”‡•‡–Žƒ™‘ˆ‹…‘‡–ƒš‹†‹ƒ‹•‰‘˜‡”‡†„›–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ™Š‹…Š‹•ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡

„›–Š‡—ƒŽ ‹ƒ…‡…–ƒ†‘–Š‡”Ž‡‰‹•Žƒ–‹‘•’‡”–ƒ‹‹‰–‘†‹”‡…––ƒšǤŠ‡ƒ…–™Š‹…Š…ƒ‡‹–‘ˆ‘”…‡‘’”‹Žͳǡ
ͳͻ͸ʹǡ”‡’Žƒ…‡†–Š‡†‹ƒ…‘‡ƒš…–ǡͳͻʹʹǡ™Š‹…ŠŠƒ†”‡ƒ‹‡†‹‘’‡”ƒ–‹‘ˆ‘”ͶͲ›‡ƒ”•Ǥ —”–Š‡”‘”‡ǡ
 Lesson 1 Ȉ Direct Taxes – At a Glance 11

ƒ•‡–‘ˆ”—Ž‡•‘™ƒ•…‘‡ƒš—Ž‡•ǡͳͻ͸ʹŠƒ˜‡„‡‡ˆ”ƒ‡†ˆ‘”‹’Ž‡‡–‹‰–Š‡˜ƒ”‹‘—•’”‘˜‹•‹‘•‘ˆ
–Š‡…–Ǥ
Changes in administrative set up since the inception of the department
Š‡”ƒ’‹†…Šƒ‰‡•‹ƒ†‹‹•–”ƒ–‹‘‘ˆ†‹”‡…––ƒš‡•ǡ†—”‹‰–Š‡Žƒ•–†‡…ƒ†‡•ǡ”‡ϐŽ‡…––Š‡Š‹•–‘”›‘ˆ•‘…‹‘Ǧ‡…‘‘‹…
–Š‹‹‰‹†‹ƒǤ ”‘ͳͻʹʹ–‘–Š‡’”‡•‡–†ƒ›…Šƒ‰‡•‹†‹”‡…––ƒšŽƒ™•Šƒ˜‡„‡‡•‘”ƒ’‹†–Šƒ–‡š…‡’–‹–Š‡„ƒ”‡
‘—–Ž‹‡•ǡ–Š‡–”ƒ…‡•‘ˆ–Š‡ǤǤ…–ǡͳͻʹʹ…ƒŠƒ”†Ž›„‡•‡‡‹–Š‡ͳͻ͸ͳ…–ƒ•‹–•–ƒ†•ƒ‡†‡†–‘†ƒ–‡Ǥ–™ƒ•„—–
ƒ–—”ƒŽǡ‹–Š‡•‡…‹”…—•–ƒ…‡•–Šƒ––Š‡•‡–—’‘ˆ–Š‡†‡’ƒ”–‡–•Š‘—Ž†‘–‘Ž›‡š’ƒ†„—–—†‡”‰‘•–”—…–—”ƒŽ
…Šƒ‰‡•ƒ•™‡ŽŽǤ
Š‡‘”‰ƒ‹•ƒ–‹‘ƒŽŠ‹•–‘”›‘ˆ–Š‡…‘‡Ǧ–ƒš‡’ƒ”–‡–•–ƒ”–•‹–Š‡›‡ƒ”ͳͻʹʹǤŠ‡…‘‡Ǧ–ƒš…–ǡͳͻʹʹǡ‰ƒ˜‡ǡ
ˆ‘”–Š‡ϐ‹”•––‹‡ǡƒ•’‡…‹ϐ‹…‘‡…Žƒ–—”‡–‘˜ƒ”‹‘—•…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•ǤŠ‡ˆ‘—†ƒ–‹‘‘ˆƒ’”‘’‡”•›•–‡‘ˆ
ƒ†‹‹•–”ƒ–‹‘™ƒ•–Š—•Žƒ‹†ǤͳͻʹͶǡ‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–…‘•–‹–—–‡†–Š‡‘ƒ”†ƒ•ƒ•–ƒ–—–‘”›„‘†›™‹–Š
ˆ—…–‹‘ƒŽ ”‡•’‘•‹„‹Ž‹–‹‡• ˆ‘” –Š‡ ƒ†‹‹•–”ƒ–‹‘ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–Ǥ ‘‹••‹‘‡”• ‘ˆ …‘‡Ǧ–ƒš ™‡”‡
ƒ’’‘‹–‡†•‡’ƒ”ƒ–‡Ž›ˆ‘”‡ƒ…Š’”‘˜‹…‡ƒ†••‹•–ƒ–‘‹••‹‘‡”•ƒ†…‘‡Ǧ–ƒšˆϐ‹…‡”•™‡”‡’”‘˜‹†‡†—†‡”
–Š‡‹”…‘–”‘ŽǤŠ‡ƒ‡†‡–•–‘–Š‡…‘‡ƒš …–ǡ‹ͳͻ͵ͻǡƒ†‡–™‘˜‹–ƒŽ•–”—…–—”ƒŽ …Šƒ‰‡•ǣȋ‹Ȍƒ’’‡ŽŽƒ–‡
ˆ—…–‹‘• ™‡”‡ •‡’ƒ”ƒ–‡† ˆ”‘ ƒ†‹‹•–”ƒ–‹˜‡ ˆ—…–‹‘•Ǣ ƒ …Žƒ•• ‘ˆ ‘ˆϐ‹…‡”•ǡ ‘™ ƒ• ’’‡ŽŽƒ–‡ ••‹•–ƒ–
‘‹••‹‘‡”•ǡ–Š—•…ƒ‡‹–‘‡š‹•–‡…‡ǡƒ†ȋ‹‹Ȍƒ…‡–”ƒŽ…Šƒ”‰‡™ƒ•…”‡ƒ–‡†‹‘„ƒ›‹ͳͻͶͲǡ™‹–Šƒ˜‹‡™–‘
‡š‡”…‹•‹‰‡ˆˆ‡…–‹˜‡…‘–”‘Ž‘˜‡”–Š‡’”‘‰”‡••ƒ†‹•’‡…–‹‘‘ˆ–Š‡™‘”‘ˆ…‘‡Ǧ–ƒš‡’ƒ”–‡––Š”‘—‰Š‘—–
†‹ƒǡ–Š‡˜‡”›ϐ‹”•–ƒ––ƒ…Š‡†‘ˆϐ‹…‡‘ˆ–Š‡‘ƒ”†ǡ…ƒŽŽ‡†‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ…‘‡ƒšȌǦ™ƒ•…”‡ƒ–‡†Ǥ•ƒ
”‡•—Ž–‘ˆ•‡’ƒ”ƒ–‹‘‘ˆ‡š‡…—–‹˜‡ƒ†Œ—†‹…‹ƒŽˆ—…–‹‘•ǡ‹ͳͻͶͳǡ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ…ƒ‡‹–‘‡š‹•–‡…‡Ǥ–Š‡
•ƒ‡›‡ƒ”ǡƒ…‡–”ƒŽ…Šƒ”‰‡™ƒ•…”‡ƒ–‡†‹ƒŽ…—––ƒƒŽ•‘Ǥ
‘”†‡”–‘‹’”‘˜‡–Š‡“—ƒŽ‹–›‘ˆ™‘”ǡ‹ͳͻ͹͹ǡƒ‡™…ƒ†”‡‘™ƒ•ȋ••‡••‡–Ȍƒ†‹ͳͻ͹ͺƒ‘–Š‡”…ƒ†”‡
‘™ƒ•ȋ’’‡ƒŽ•Ȍ™‡”‡…”‡ƒ–‡†ǤŠ‡‘‹••‹‘‡”•ǯ…ƒ†”‡™ƒ•ˆ—”–Š‡””‡‘”‰ƒ‹•‡†ƒ†ϐ‹˜‡’‘•–•‘ˆŠ‹‡ˆ
‘‹••‹‘‡”•ȋ†‹‹•–”ƒ–‹‘Ȍ™‡”‡…”‡ƒ–‡†‹ͳͻͺͳǤ
‡”–ƒ‹‹’‘”–ƒ–’‘Ž‹…›ƒ†ƒ†‹‹•–”ƒ–‹˜‡”‡ˆ‘”•…ƒ””‹‡†‘—–‘˜‡”–Š‡’ƒ•–ˆ‡™›‡ƒ”•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣǦ
ȋƒȌ Š‡’‘Ž‹…›”‡ˆ‘”•‹…Ž—†‡ǣǦ
Ȉ ‘™‡”‹‰‘ˆ”ƒ–‡•Ǣ
Ȉ ‹–Š†”ƒ™ƒŽ•Ȁ”‡†—…–‹‘‘ˆƒŒ‘”‹…‡–‹˜‡•Ǣ
Ȉ –”‘†—…–‹‘‘ˆ‡ƒ•—”‡•ˆ‘”’”‡•—’–‹˜‡–ƒšƒ–‹‘Ǣ
Ȉ ‹’Ž‹ϐ‹…ƒ–‹‘‘ˆ–ƒšŽƒ™•ǡ’ƒ”–‹…—Žƒ”Ž›”‡Žƒ–‹‰–‘…ƒ’‹–ƒŽ‰ƒ‹•Ǣƒ†
Ȉ ‹†‡‹‰–Š‡–ƒš„ƒ•‡Ǥ
ȋ„Ȍ Š‡ƒ†‹‹•–”ƒ–‹˜‡”‡ˆ‘”•‹…Ž—†‡ǣǦ
Ȉ ‘’—–‡”‹•ƒ–‹‘‹˜‘Ž˜‹‰ƒŽŽ‘–‡–‘ˆƒ—‹“—‡‹†‡–‹ϐ‹…ƒ–‹‘—„‡”–‘–ƒš’ƒ›‡”•™Š‹…Š‹•‡‡”‰‹‰
ƒ•ƒ—‹“—‡„—•‹‡••‹†‡–‹ϐ‹…ƒ–‹‘—„‡”Ǣƒ†
Ȉ ‡ƒŽ‹‰‡–‘ˆ–Š‡ƒ˜ƒ‹Žƒ„Ž‡Š—ƒ”‡•‘—”…‡•™‹–Š–Š‡…Šƒ‰‡†„—•‹‡••‡‡†•‘ˆ–Š‡‘”‰ƒ‹•ƒ–‹‘Ǥ

Important events affecting the administrative set up in the Income-tax department

Year Event
ͳͻ͵ͻ Ȉ ’’‡ŽŽƒ–‡ˆ—…–‹‘••‡’ƒ”ƒ–‡†ˆ”‘‹•’‡…–‹‰ˆ—…–‹‘•Ǥ
Ȉ …Žƒ••‘ˆ‘ˆϐ‹…‡”•‘™ƒ••…ƒ‡‹–‘‡š‹•–‡…‡Ǥ
Ȉ —”‹•†‹…–‹‘‘ˆ‘‹••‹‘‡”•‘ˆ…‘‡–ƒš‡š–‡†‡†–‘…‡”–ƒ‹…Žƒ••‡•‘ˆ…ƒ•‡•ƒ†ƒ
‡–”ƒŽ…Šƒ”‰‡™ƒ•…”‡ƒ–‡†ƒ–‘„ƒ›Ǥ
ͳͻͶͲ Ȉ ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ…‘‡Ǧ–ƒšȌ…ƒ‡‹–‘„‡‹‰Ǥ
Ȉ š…‡••”‘ϐ‹–•ƒš‹–”‘†—…‡†™Ǥ‡ǤˆǤͳǦͻǦͳͻ͵ͻǤ
12 Lesson 1 Ȉ EP-TL

Year Event
ͳͻͶͳ Ȉ …‘‡Ǧƒš’’‡ŽŽƒ–‡”‹„—ƒŽ…ƒ‡‹–‘‡š‹•–‡…‡Ǥ
Ȉ ‡–”ƒŽ…Šƒ”‰‡…”‡ƒ–‡†ƒ–ƒŽ…—––ƒǤ
ͳͻͶ͵ Ȉ ’‡…‹ƒŽ˜‡•–‹‰ƒ–‹‘”ƒ…Š‡••‡–—’Ǥ
ͳͻͶ͸ Ȉ ‡‘‡–‹•ƒ–‹‘‘ˆŠ‹‰Š†‡‘‹ƒ–‹‘‘–‡•ƒ†‡Ǥ
Ȉ š…‡••”‘ϐ‹–•ƒš…–”‡’‡ƒŽ‡†Ǥ
ͳͻͶ͹ Ȉ —•‹‡••”‘ϐ‹–•ƒš‡ƒ…–‡†ȋˆ‘”–Š‡’‡”‹‘†ͳǦͶǦͳͻͶ͸–‘͵ͳǦ͵ǦͳͻͶͻȌǤ
ͳͻͷͳ Ȉ ‡’‘”–‘ˆ…‘‡Ǧ–ƒš˜‡•–‹‰ƒ–‹‘‘‹••‹‘‘™ƒ•ƒ”†Šƒ…Šƒ”‹‘‹••‹‘
”‡…‡‹˜‡†Ǥ
Ȉ ‘Ž—–ƒ”›‹•…Ž‘•—”‡…Š‡‡‹–”‘†—…‡†Ǥ
ͳͻͷʹ Ȉ ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ˜‡•–‹‰ƒ–‹‘Ȍ•‡–—’Ǥ
Ȉ •’‡…–‘”‘ˆ…‘‡Ǧ–ƒš†‡…Žƒ”‡†ƒ•ƒǤǤƒ—–Š‘”‹–›Ǥ
ͳͻͷ͵ Ȉ •–ƒ–‡—–›…–ǡͳͻͷ͵…ƒ‡‹–‘‡š‹•–‡…‡™Ǥ‡ǤˆǤͳͷǦͳͲǦͳͻͷ͵Ǥ
Ȉ …–  ‘ˆ ͳͻͷ͵ ‰ƒ˜‡ ‡ˆˆ‡…– –‘ –Š‡ ”‡…‘‡†ƒ–‹‘• ‘ˆ ‘‹••‹‘ ƒ’’‘‹–‡† —†‡”
ƒšƒ–‹‘‘ˆ…‘‡ȋ˜‡•–‹‰ƒ–‹‘‘‹••‹‘Ȍ…–ǡͳͻͶ͹Ǥ
ͳͻͷͶ Ȉ –‡”ƒŽ—†‹–…Š‡‡‹–Š‡…‘‡Ǧ–ƒš‡’ƒ”–‡–‹–”‘†—…‡†Ǥ
Ȉ ƒšƒ–‹‘“—‹”›‘‹••‹‘‘™ƒ• ‘Šƒ–Šƒ‹‘‹••‹‘•‡–—’Ǥ
ͳͻͷ͹ Ȉ Š‡‡ƒŽ–Šƒš…–ǡͳͻͷ͹‹–”‘†—…‡†™Ǥ‡ǤˆǤͳǦͶǦͳͻͷ͹Ǥ
Ȉ ǤǤǤȋȌ–ƒˆˆ‘ŽŽ‡‰‡•–ƒ”–‡†ˆ—…–‹‘‹‰ƒ–ƒ‰’—”ƒ†—…ŠŽƒ–‡”ˆ‘—”ǤǤ•Ǥ•–ƒ–‹‘‡†ƒ–
‘„ƒ›ǡƒŽ…—––ƒǡƒ‰ƒŽ‘”‡ƒ†—…‘™‘’‡‡†Ǥ
ͳͻͷͺ Ȉ Š‡
‹ˆ–Ǧƒš…–ǡͳͻͷͺ‹–”‘†—…‡†™Ǥ‡ǤˆǤͳǦͶǦͳͻͷͺǤ
Ȉ ‡’‘”–‘ˆƒ™‘‹••‹‘”‡…‡‹˜‡†
ͳͻͷͻ Ȉ ‹”‡…–ƒš‡•†‹‹•–”ƒ–‹‘“—‹”›‘‹––‡‡•—„‹––‡†‹–•”‡’‘”–Ǥ
ͳͻ͸Ͳ Ȉ ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ‡•‡ƒ”…Šǡ–ƒ–‹•–‹…•Ƭ—„Ž‹…ƒ–‹‘•Ȍ™ƒ••‡–—’Ǥ
Ȉ ™‘‰”ƒ†‡•‘ˆ•’‡…–‘”•Ǧ•‡Ž‡…–‹‘ƒ†‘”†‹ƒ”›‰”ƒ†‡•Ǧ‡”‰‡†‹–‘‘‡•‹‰Ž‡‰”ƒ†‡Ǥ

ͳͻ͸ͳ Ȉ ‹”‡…–ƒš‡•†˜‹•‘”›‘‹––‡‡•‡–—’Ǧ‹”‡…–ƒš‡•†‹‹•–”ƒ–‹˜‡“—‹”›‘‹––‡‡…‘•–‹–—–‡†Ǥ
Ȉ …‘‡Ǧƒš…–ǡͳͻ͸ͳ…ƒ‡‹–‘‡š‹•–‡…‡™Ǥ‡ǤˆǤͳǦͶǦͳͻ͸ʹǤ
Ȉ ‡˜‡—‡—†‹–‹–”‘†—…‡†ˆ‘”–Š‡ϐ‹”•––‹‡‹–Š‡‡’ƒ”–‡–Ǥ
Ȉ ‡™•›•–‡ˆ‘”‡˜ƒŽ—ƒ–‹‘‘ˆ™‘”†‘‡„›…‘‡Ǧƒšˆϐ‹…‡”•‹–”‘†—…‡†Ǥ
ͳͻ͸͵ǡ Ȉ ‡˜‡—‡…–ǡͳͻ͸͵Ǥ
Ȉ Š‡‘’ƒ‹‡•ȋ”‘ϐ‹–•Ȍ—”Ǧƒš…–ǡͳͻ͸Ͷ™ƒ•‹–”‘†—…‡†Ǥ
ͳͻ͸Ͷ Ȉ —‹–›‡’‘•‹–…Š‡‡ǡͳͻ͸Ͷ‹–”‘†—…‡†Ǥ

ͳͻ͸ͷ Ȉ ‘Ž—–ƒ”›‹•…Ž‘•—”‡…Š‡‡…ƒ‡‹–‘‘’‡”ƒ–‹‘Ǥ
ͳͻ͸͸ Ȉ —…–‹‘ƒŽ…Š‡‡‹–”‘†—…‡†Ǥ
Ȉ ’‡…‹ƒŽ‡…‘˜‡”›‹–…”‡ƒ–‡†Ǥ
Ȉ –‡ŽŽ‹‰‡…‡‹‰…”‡ƒ–‡†ƒ†’Žƒ…‡†—†‡”–Š‡…Šƒ”‰‡‘ˆ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘
ȋ˜‡•–‹‰ƒ–‹‘ȌǤ
Lesson 1 Ȉ Direct Taxes – At a Glance 13

Year Event
ͳͻ͸ͺ Ȉ ƒŽ—ƒ–‹‘‡ŽŽ…ƒ‡‹–‘‡š‹•–‡…‡‹–Š‡…‘‡ƒš‡’ƒ”–‡–Ǥ
Ȉ ‡’‘”– ‘ˆ ”ƒ–‹‘ƒŽ‹•ƒ–‹‘ ƒ† •‹’Ž‹ϐ‹…ƒ–‹‘ ‘ˆ –ƒš •–”—…–—”‡ ȋŠ‘‘–ŠƒŽ‹‰ƒ ‘‹––‡‡Ȍ
”‡…‡‹˜‡†Ǥ
Ȉ †‹‹•–”ƒ–‹˜‡‡ˆ‘”•‘‹••‹‘•‡–—’Ǥ

ͳͻ͹Ͳ Ȉ ‡…‘˜‡”› ˆ—…–‹‘• ™Š‹…Š ™‡”‡ Š‹–Š‡”–‘ ’‡”ˆ‘”‡† „› …‘‡Ǧƒš ˆϐ‹…‡”•ǡ ‰‹˜‡ –‘ƒš
‡…‘˜‡”›ˆϐ‹…‡”•Ǥ”‹‘”–‘–Šƒ––ƒ–‡
‘˜‡”‡–‘ˆϐ‹…‹ƒŽ•‡š‡”…‹•‡†–Š‡ˆ—…–‹‘•‘ˆƒƒš
‡…‘˜‡”›ˆϐ‹…‡”Ǥ
ͳͻ͹ͳ Ȉ ‡™…ƒ†”‡‘ˆ’‘•–•‘™ƒ•ƒš‡…‘˜‡”›‘‹••‹‘‡”•‹–”‘†—…‡†™Ǥ‡ǤˆǤͳǤͳǤͳͻ͹ʹǤ
Ȉ ‡’‘”–‘ˆ‹”‡…–ƒš‡•“—‹”›‘‹––‡‡”‡…‡‹˜‡†Ǥ
Ȉ —ƒ”›••‡••‡–…Š‡‡‹–”‘†—…‡†™Ǥ‡ǤˆǤͳǦͶǦͳͻ͹ͳǤ

ͳͻ͹ʹ Ȉ ’‡…‹ƒŽ ‡ŽŽ ™‹–Š‹ –Š‡ ‹”‡…–‘”ƒ–‡ ‘ˆ •’‡…–‹‘ ȋ˜‡•–‹‰ƒ–‹‘Ȍ …”‡ƒ–‡† –‘ ‘˜‡”•‡‡ –Š‡
…ƒ•‡•‘ˆ„‹‰‹†—•–”‹ƒŽŠ‘—•‡•Ǥ
Ȉ ‡™…ƒ†”‡‘ˆ’‘•–•‘™ƒ•ȋ…“ǤȌ…”‡ƒ–‡†ƒ†ƒ’’‘‹–‡†ƒ•‘’‡–‡–—–Š‘”‹–›
™‹–Š–Š‡‹•‡”–‹‘‘ˆ‡™Šƒ’–‡”‹–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ‘–Š‡ƒ…“—‹•‹–‹‘‘ˆ
‹‘˜ƒ„Ž‡’”‘’‡”–‹‡•‹…‡”–ƒ‹…ƒ•‡•‘ˆ–”ƒ•ˆ‡”–‘…‘—–‡”‡˜ƒ•‹‘‘ˆ–ƒšǤ
Ȉ ‹”‡…–‘”ƒ–‡‘ˆ”‰ƒ‹•ƒ–‹‘Ƭƒƒ‰‡‡–‡”˜‹…‡•ȋ…‘‡ǦƒšȌ…”‡ƒ–‡†Ǥ
Ȉ Š‡’‘•–‘ˆǤǤǤȋ–‡”ƒŽ—†‹–Ȍ…”‡ƒ–‡†Ǥ
Ȉ ”ƒ†ƒ…Š‡‡‹–Š‡…‘‡Ǧ–ƒš‡’ƒ”–‡–‹–”‘†—…‡†Ǥ
Ȉ ›•–‡‘ˆ‡”ƒ‡–……‘—–—„‡”‹–”‘†—…‡†Ǥ
Ȉ ƒŽ—ƒ–‹‘ˆϐ‹…‡”•‰‹˜‡•–ƒ–—–‘”›’‘™‡”•—†‡”–Š‡…‘‡Ǧƒš…–ǡͳͻ͸ͳƒ†‡ƒŽ–ŠǦƒš…–ǡͳͻͷ͹Ǥ
ͳͻ͹Ͷ Ȉ ‘’—Ž•‘”›‡’‘•‹–…Š‡‡ȋ…‘‡Ǧƒšƒ›‡”•Ȍ…–ǡͳͻ͹Ͷ‹–”‘†—…‡†Ǥ
Ȉ …–‹‘Žƒˆ‘”–Š‡…‘‡Ǧ–ƒšˆϐ‹…‡”•‹–”‘†—…‡†ˆ‘”–Š‡ϐ‹”•––‹‡Ǥ
Ȉ ‘…‡’–‘ˆǤǤ‹–”‘†—…‡†Ǥ
ͳͻ͹ͷ Ȉ ‘Ž—–ƒ”›‹•…Ž‘•—”‡…Š‡‡ˆ‘”…‘‡ƒ†‡ƒŽ–Š‹’Ž‡‡–‡†Ǥ
Ȉ ’‡…‹ƒŽ‡ŽŽˆ‘”†‡ƒŽ‹‰™‹–Š—‰‰Ž‡”•ǯ…ƒ•‡•…”‡ƒ–‡†Ǥ
ͳͻ͹͸ Ȉ ‡––Ž‡‡–‘‹••‹‘…”‡ƒ–‡†ƒ†ƒšƒ–‹‘ƒ™•ȋ‡†‡–Ȍ…–ǡͳͻ͹ͷ‹•‡”–‡†ƒ‡™
Šƒ’–‡”‹–Š‡…‘‡ƒš…–™Ǥ‡ǤˆǤͳǦͶǦͳͻ͹͸Ǥ
Ȉ —‰‰Ž‡”•ƒ† ‘”‡‹‰š…Šƒ‰‡ƒ‹’—Žƒ–‘”•ȋ ‘”ˆ‡‹–—”‡‘ˆ”‘’‡”–›Ȍ…–ǡͳͻ͹͸‹–”‘†—…‡†
™Ǥ‡ǤˆǤʹͷǦͳǦͳͻ͹͸Ǥ
Ȉ ‡™•…Š‡‡ˆ‘”†‡’ƒ”–‡–ƒŽ‹œƒ–‹‘‘ˆƒ……‘—–•‹–”‘†—…‡†Ǥ
Ȉ Š‘•Š‹‘‹––‡‡•—„‹––‡†‹–•‹–‡”‹”‡’‘”–Ǥ
ͳͻ͹͹ Ȉ ‡™…ƒ†”‡‘ˆ’‘•–•‘™ƒ•ȋ••‡••‡–Ȍ…”‡ƒ–‡†Ǥ

ͳͻ͹ͺ Ȉ ’’‡ŽŽƒ–‡ ˆ—…–‹‘• ‰‹˜‡ –‘ ƒ ‡™ …ƒ†”‡ ‘ˆ ‘‹••‹‘‡”• ‘™ ƒ• ‘‹••‹‘‡”
ȋ’’‡ƒŽ•ȌǤ
Ȉ ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ‡…‘˜‡”›Ȍ•‡–—’Ǥ
Ȉ ‡™ †‹”‡…–‘”ƒ–‡ ‘™ ƒ• ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ‹‰‹Žƒ…‡Ȍ…ƒ‡‹–‘ ‡š‹•–‡…‡„›
„‹ˆ—”…ƒ–‹‰–Š‡ˆ—…–‹‘•‘ˆ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ˜‡•–‹‰ƒ–‹‘ȌǤ
Ȉ Š‘•Š‹‘‹––‡‡•—„‹––‡†‹–•ϐ‹ƒŽ”‡’‘”–Ǥ
ͳͻ͹ͻ Ȉ ‡™†‹”‡…–‘”ƒ–‡†‡•‹‰ƒ–‡†ƒ•‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ—„Ž‹…ƒ–‹‘Ƭ—„Ž‹…‡Žƒ–‹‘•Ȍ
…”‡ƒ–‡†‘—–‘ˆ–Š‡‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋƬȌǤ
14 Lesson 1 Ȉ EP-TL

Year Event
ͳͻͺͲ Ȉ ‘–‡Ž‡…‡‹’–ƒš…–ǡͳͻͺͲ…ƒ‡‹–‘ˆ‘”…‡™Ǥ‡ǤˆǤͳǤͶǤͳͻͺͳǤ

ͳͻͺͳ Ȉ …‘‘‹…†‹‹•–”ƒ–‹˜‡‡ˆ‘”•‘‹••‹‘•‡–—’Ǥ
Ȉ Š”‡‡‡™‹”‡…–‘”ƒ–‡•ǡ˜‹œǤǡ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ–‡ŽŽ‹‰‡…‡Ȍǡ‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘
ȋ—”˜‡›Ȍƒ†‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ›•–‡•Ȍ…”‡ƒ–‡†Ǥ
Ȉ ‹–Š‹–Š‡‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ…‘‡ƒšƒ†—†‹–Ȍǡƒ•‡’ƒ”ƒ–‡‹”‡…–‘”‘ˆ•’‡…–‹‘
ȋ—†‹–Ȍƒ’’‘‹–‡†Ǥ
Ȉ ‹”‡…–‘”ƒ–‡ ‘ˆ •’‡…–‹‘ ȋƬȌ ”‡Ǧ‘”‰ƒ‹•‡† ƒ† ‹”‡…–‘”ƒ–‡ ‘ˆ •’‡…–‹‘ ȋƬȌ
”‡Ǧ†‡•‹‰ƒ–‡†ƒ•‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ”‹–‹‰Ƭ—„Ž‹…ƒ–‹‘•ȌǤ
Ȉ ǤǤǤȋȌ–ƒˆˆ‘ŽŽ‡‰‡ǡƒ‰’—”ǡ”‡Ǧ†‡•‹‰ƒ–‡†ƒ•ƒ–‹‘ƒŽ…ƒ†‡›‘ˆ‹”‡…–ƒš‡•Ǥ
Ȉ ’‡…‹ƒŽ‡ƒ”‡”‘†•ȋ—‹–‹‡•Ƭš‡’–‹‘•Ȍ…–’”‘—Ž‰ƒ–‡†Ǥ
Ȉ ‹”‡…–‘”
‡‡”ƒŽȋ’‡…‹ƒŽ˜‡•–‹‰ƒ–‹‘Ȍƒ†‹”‡…–‘”
‡‡”ƒŽȋ˜‡•–‹‰ƒ–‹‘Ȍƒ’’‘‹–‡†–‘
…‘–”‘Ž–Š‡ˆ—…–‹‘‹‰‘ˆ˜ƒ”‹‘—•‹”‡…–‘”ƒ–‡•—†‡”–Š‡…‘–”‘Ž‘ˆ‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…– ƒš‡•Ǥ
Ȉ ‹˜‡’‘•–•‘ˆŠ‹‡ˆ‘‹••‹‘‡”ȋ†‹‹•–”ƒ–‹‘Ȍ…”‡ƒ–‡†Ǥ
Ȉ ˆ‡™’‘•–•‘ˆ‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš™‡”‡‡ƒ”ƒ”‡†ƒ•‘‹••‹‘‡”‘ˆ…‘‡Ǧƒš
ȋ˜ǤȌƒ†‘‹••‹‘‡”‘ˆ…‘‡Ǧƒšȋ‡…‘˜‡”›ȌǤ
ͳͻͺʹ Ȉ ’‡…‹ƒŽ‡ŽŽ™‹–Š‹–Š‡‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ˜‡•–‹‰ƒ–‹‘Ȍ…‘˜‡”–‡†‹–‘ƒ•‡’ƒ”ƒ–‡
‹”‡…–‘”ƒ–‡ƒ†”‡Ǧ†‡•‹‰ƒ–‡†ƒ•‹”‡…–‘”ƒ–‡‘ˆ•’‡…–‹‘ȋ’‡…‹ƒŽ˜‡•–‹‰ƒ–‹‘ȌǤ
Ȉ ȋ›•–‡•Ȍƒ’’‘‹–‡†‹–Š‡‹”‡…–‘”ƒ–‡‘ˆ…‘‡Ǧ–ƒšȋ”‰ƒ‹•ƒ–‹‘ƒ†ƒƒ‰‡‡–
‡”˜‹…‡•Ȍ–‘…‘‘”†‹ƒ–‡‡ˆˆ‘”–•‹‹–”‘†—…‹‰‡Ž‡…–”‘‹…†ƒ–ƒ’”‘…‡••‹‰‹–Š‡‡’––Ǥ
‹…”‘’”‘…‡••‘”„ƒ•‡†•›•–‡ƒŽ‘‰™‹–Š†ƒ–ƒ‡–”›•›•–‡™ƒ•‹•–ƒŽŽ‡†Š‡”ƒŽ†‹‰–Š‡ ‡”ƒ
‘ˆ…‘’—–‡”‹•ƒ–‹‘Ǥ
Ȉ ‡˜›‘ˆ‘–‡Ž‡…‡‹’–•ƒš†‹•…‘–‹—‡†Ǥ
Ȉ ‡‰‹‘ƒŽ”ƒ‹‹‰•–‹–—–‡ƒ–ƒ‰’—”•–ƒ”–‡†ˆ—…–‹‘‹‰—†‡”–Š‡…‘–”‘Ž‘ˆ–Š‡ƒ–‹‘ƒŽ
…ƒ†‡›‘ˆ‹”‡…–ƒš‡•Ǥ
ͳͻͺ͵ Ȉ Š‡ ˜‹‰‹Žƒ…‡ •‡– —’ ”‡‘”‰ƒ‹•‡† ƒ† –Š‡ •–”‡‰–Š ‘ˆ ›Ǥ ‹”‡…–‘” ȋ‹‰‹Žƒ…‡Ȍ ƒ†••––Ǥ
‹”‡…–‘”ȋ‹‰‹Žƒ…‡Ȍƒ—‰‡–‡†Ǥ
Ȉ ‘’—–‡”‹•‡†•›•–‡•ˆ‘”’”‘…‡••‹‰…ŠƒŽŽƒ•ƒ††‡•‹‰‡†ƒ††‡˜‡Ž‘’‡†Ǥ
ͳͻͺͶ Ȉ ƒšƒ–‹‘ ƒ™•ȋ‡†‡–Ȍ…–ǡ ͳͻͺͶ ’ƒ••‡† –‘ •–”‡ƒŽ‹‡ ’”‘…‡†—”‡• ‹ –Š‡ ‹–‡”‡•– ‘ˆ
„‡––‡” ™‘” ƒƒ‰‡‡–Ǣ ƒ˜‘‹† ‹…‘˜‡‹‡…‡ –‘ –ƒš ’ƒ›‡”•Ǣ ”‡†—…‡ Ž‹–‹‰ƒ–‹‘Ǣ ”‡‘˜‡
ƒ‘ƒŽ‹‡•ƒ†”ƒ–‹‘ƒŽ‹•‡•‘‡’”‘˜‹•‹‘•Ǥ
ͳͻͺͷ Ȉ ‘•–‘ˆ‹”‡…–‘”
‡‡”ƒŽȋ˜‡•–‹‰ƒ–‹‘Ȍ…”‡ƒ–‡†ˆ‘”‘”‡‡ˆˆ‡…–‹˜‡…Š‡…‹‰‘ˆ–ƒš‡˜ƒ•‹‘Ǥ
Ȉ ǤǤȋ‡†‡–Ȍ…–ǡͳͻͺͷ†‹•…‘–‹—‡•Ž‡˜›‘ˆ‡•–ƒ–‡†—–›‘†‡ƒ–Š•‘……—””‹‰‘‘”ƒˆ–‡”
ͳ͸ǤͲ͵ǤͳͻͺͷǤ
Ȉ ‘’—Ž•‘”›‡’‘•‹–…Š‡‡ȋ…‘‡ƒšƒ›‡”•Ȍ…–ǡͳͻ͹Ͷ†‹•…‘–‹—‡†™Ǥ‡ǤˆǤͳǤͶǤͳͻͺͷǤ
Ȉ –‡”‡•–ƒš…–ǡͳͻ͹Ͷ†‹•…‘–‹—‡†™Ǥ‡ǤˆǤ͵ͳǤ͵ǤͳͻͺͷǤ
Ȉ ‡™Dz‡™ƒ”†…Š‡‡dzˆ‘”‘–‹˜ƒ–‹‰‘ˆϐ‹…‡”•‹–”‘†—…‡†™Ǥ‡ǤˆǤͳǤͶǤͳͻͺͷǤ
ͳͻͺ͸ Ȉ Š‡ ǤǤ …– ƒ† ǤǤ …– ƒ‡†‡† „› ƒšƒ–‹‘ ƒ™• ȋ‡†‡– ƒ† ‹•…‡ŽŽƒ‡‘—•
”‘˜‹•‹‘•Ȍ…–Ǥ
Ȉ •–ƒ„Ž‹•Š‡†‡––Ž‡‡–‘‹••‹‘Ǥ
Ȉ –”‘†—…‡†Ž‘…ƒ••‡–•…‘…‡’–ˆ‘”†‡’”‡…‹ƒ–‹‘Ǥ
Ȉ ‘—”‘ˆϐ‹…‡•‘ˆ’’”‘’”‹ƒ–‡—–Š‘”‹–›ˆ‘”ƒ…“—‹”‹‰’”‘’‡”–›‹™Š‹…Š—ƒ……‘—–‡†‘‡›‹•
‹˜‡•–‡†•‡–—’‹‡–”‘’‘Ž‹–ƒ…‹–‹‡•Ǥ
Lesson 1 Ȉ Direct Taxes – At a Glance 15

Year Event
ͳͻͺ͹ Ȉ
‘˜‡”‡–ǯ•ƒ’’”‘˜ƒŽ‘„–ƒ‹‡†–‘•‡–—’–Š”‡‡‡™„‡…Š‡•‘ˆ‡––Ž‡‡–‘‹••‹‘Ǥ
Ȉ ǤǤ Šƒ‘‹––‡‡•‡–—’ˆ‘”•‹’Ž‹ϐ‹…ƒ–‹‘ƒ†”ƒ–‹‘ƒŽ‹•ƒ–‹‘‘ˆ–ƒšŽƒ™•Ǥ
Ȉ ˆϐ‹…‡‘ˆ‹”‡…–‘”ƒ–‡
‡‡”ƒŽȋƒšš‡’–‹‘Ȍ•‡–—’ƒ–ƒŽ…—––ƒǤ
Ȉ Š‡‹”‡…–ƒšƒ™ȋ‡†‡–Ȍ…–ǡͳͻͺ͹‹–”‘†—…‡†—‹ˆ‘”’”‡˜‹‘—•›‡ƒ”Ǥ
ͳͻͺͺ Ȉ ‡ƒ‹”ƒ•ƒ…–‹‘•”‘Š‹„‹–‹‘…–ǡͳͻͺͺ‹–”‘†—…‡†Ǥ
Ȉ Š‡
‘˜‡”‡– ƒ‘—…‡† ƒ Dz‹‡ ‹†‘™ …Š‡‡dz ™Š‹…Š ƒŽŽ‘™‡† –ƒš ’ƒ›‡”• ͷͲΨ
”‡„ƒ–‡‘ˆ‹–‡”‡•–—Ȁ•ʹʹͲȋʹȌ‹ˆ–Š‡›’ƒ›–Š‡–ƒšƒ†„ƒŽƒ…‡‹–‡”‡•–ǤŠ‡•…Š‡‡™ƒ•‹
‘’‡”ƒ–‹‘„‡–™‡‡ͳǤ͹Ǥͺͺ–‘͵ͲǤͻǤͺͺǤ
Ȉ ȋ‡–”ƒŽȌ’Žƒ…‡†—†‡”–Š‡…‘–”‘Žƒ†•—’‡”˜‹•‹‘‘ˆ‹”‡…–‘”
‡‡”ƒŽȋ˜‡•–‹‰ƒ–‹‘ȌǤ
Ȉ
‘˜‡”‡– †‡…‹†‡† –Šƒ– …ƒ†”‡ …‘–”‘Ž ˆ‘”
”‘—’ Ǯǯƒ† Ǯǯ’‘•–• ™‘—Ž† „‡ ™‹–Š Š‹‡ˆ
‘‹••‹‘‡”ƒ†™‹–Šˆ‘”
”‘—’Ǯǯƒ†Ǯǯ’‘•–•Ǥ
Ȉ š–‡•‹‘‘ˆ‹”‡…–ƒšƒ™–‘–Š‡–ƒ–‡‘ˆ‹‹„›ƒ‘–‹ϐ‹…ƒ–‹‘‘ˆ–Š‡”‡•‹†‡–‘ˆ†‹ƒ
†ƒ–‡†͹ǤͳͳǤͳͻͺͺǤ
ͳͻͺͻ Ȉ ”‡ƒ–‹‘ ‘ˆ ƒ ƒ––ƒ…Š‡† ‘ˆϐ‹…‡ ‘ˆ 
ȋƒƒ‰‡‡– ›•–‡•Ȍ –‘ •—’‡”˜‹•‡ ‹”‡…–‘”ƒ–‡‘ˆ
Ǥƒš ȋ‡•‡ƒ”…Šǡ –ƒ–‹•–‹…•ǡ —„Ž‹…ƒ–‹‘ Ƭ —„Ž‹… ‡Žƒ–‹‘•Ȍ ƒ† ‹”‡…–‘”ƒ–‡ ‘ˆ Ǥƒš
ȋ”‰ƒ‹•ƒ–‹‘ƒ†ƒƒ‰‡‡–‡”˜‹…‡•Ȍˆ”‘‡’–ǤͳͻͺͻǤ
ͳͻͻͲ Ȉ
‹ˆ–ƒš‹ŽŽ‹–”‘†—…‡†‘͵ͳǤͷǤͳͻͻͲǤ
Ȉ ”‡ƒ–‹‘‘ˆ͸ͷ’‘•–•‘ˆ›Ǥ‘‹••‹‘‡”‘ˆǤƒš„›—’‰”ƒ†ƒ–‹‘‘ˆ‡“—ƒŽ—„‡”‘ˆ’‘•–•‘ˆ
••––Ǥ‘‹••‹‘‡”‘ˆǤƒšǤ
ͳͻͻͳ Ȉ –‡”‡•–ƒš…–ǡͳͻ͹Ͷ”‡˜‹˜‡†Ǥ
Ȉ ‹”‡…–‘”ƒ–‡‘ˆǤƒšȋ›•–‡•Ȍ•–ƒ”–‡†”‡’‘”–‹‰†‹”‡…–Ž›–‘‘ƒ”†Ǥ
ͳͻͻʹ Ȉ •ǤͳͶͲͲ”‡•—’–‹˜‡ƒšƒ–‹‘•…Š‡‡‹–”‘†—…‡†ƒ•ƒ‡ƒ•—”‡–‘™‹†‡–ƒš„ƒ•‡Ǥ
ͳͻͻ͵ Ȉ —–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰••‡–—’Ǥ
ͳͻͻͶ Ȉ ‡™‹–”‘†—…‡†Ǥ
Ȉ ‡‰‹‘ƒŽ‘’—–‡”‡–”‡•ȋ•Ȍ™‡”‡•‡–—’‹Š‡ƒ‹ǡ‡ŽŠ‹ƒ†—„ƒ‹Ǥ
ͳͻͻͷ Ȉ ‡™’”‘…‡†—”‡ˆ‘”•‡ƒ”…Šƒ••‡••‡–‹–”‘†—…‡†Ǥ
Ȉ ͷͲ ›‡ƒ”• ‘ˆ –”ƒ‹‹‰ …‘‡‘”ƒ–‡† ƒ† Dz‡‹ƒ” ™‡–› ‹˜‡dz ‹–”‘†—…‡† „› ƒ–‹‘ƒŽ
…ƒ†‡›‘ˆ‹”‡…–ƒš‡•Ǥ
ͳͻͻ͸ Ȉ ˆ”ƒ•–”—…–—”‡ˆ‘”‘’‡”ƒ–‹‘ƒŽ‡‡†••–”‡‰–Š‡‡†Ǥ
Ȉ –—†›”‡’‘”–‘Ͷ–Š…ƒ†”‡”‡˜‹‡™‘ˆ
”‘—’Ǯǯ‘ˆϐ‹…‡”•ȋȌ‘ˆ–Š‡‡’ƒ”–‡–’”‡’ƒ”‡†„›
‹”‡…–‘”ƒ–‡‘ˆ…‘‡ƒšȋ”‰ƒ‹•ƒ–‹‘ƒ†ƒƒ‰‡‡–‡”˜‹…‡•ȌǤ
ͳͻͻ͹ Ȉ ƒ–‡•‘ˆ…‘‡Ǧ–ƒš”‡†—…‡†•‹‰‹ϐ‹…ƒ–Ž›Ǥ
Ȉ ‡‰ƒŽ‡ƒ•—”‡•–‘™‹†‡–ƒš„ƒ•‡‘…‡”–ƒ‹‡…‘‘‹…‹†‹…ƒ–‘”•‹–”‘†—…‡†‹•‡Ž‡…–‡†…‹–‹‡•Ǥ
Ȉ ”‡•—’–‹˜‡–ƒš•…Š‡‡†‹•…‘–‹—‡†Ǥ
Ȉ ‘Ž—–ƒ”›‹•…Ž‘•—”‡…Š‡‡ͳͻͻ͹‹–”‘†—…‡†Ǥ
Ȉ ‹‹—Ž–‡”ƒ–‡ƒš‹–”‘†—…‡†Ǥ
Ȉ ƒ–‹‘ƒŽ‘’—–‡”‡–”‡ȋȌ™ƒ••‡–—’‹‡ŽŠ‹Ǥ
ͳͻͻͺ Ȉ ‡…Ǥʹ͸Ͳ‹–”‘†—…‡†‡ƒ„Ž‹‰†‹”‡…–ƒ’’‡ƒŽ•–‘‹‰Š‘—”–Ǥ
Ȉ ͳȀ͸…Š‡‡Ƭ’‡ƒŽ–›ˆ‘”‘Ǧϐ‹Ž‹‰‘ˆ”‡–—”‹–”‘†—…‡†–‘™‹†‡–ƒš„ƒ•‡Ǥ
Ȉ
‹ˆ–Ǧƒšƒ„‘Ž‹•Š‡†ˆ‘”‰‹ˆ–•ƒ†‡ƒˆ–‡”ͳǤͳͲǤͳͻͻͺǤ
Ȉ ƒ”‹˜ƒ†ƒƒ†Šƒ…Š‡‡ͳͻͻͺ‹–”‘†—…‡†Ǥ
Ȉ ‹Ž˜‡” —„‹Ž‡‡‘ˆ‡‰‹‘ƒŽ”ƒ‹‹‰•–‹–—–‡•…‡Ž‡„”ƒ–‡†Ǥ
16 Lesson 1 Ȉ EP-TL

Year Event
ͳͻͻͻ Ȉ —”‹•Š‹‰†‡–ƒ‹Ž•‘ˆ„ƒƒ……‘—–ƒ†…”‡†‹–…ƒ”†•‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†‡ƒ†ƒ–‘”›
ˆ‘””‡ˆ—†’—”’‘•‡Ǥ
Ȉ ”‹ƒǦˆƒ…‹‡ƒ†Œ—•–‡–•–‘”‡–—”†‘‡ƒ™ƒ›™‹–ŠǢƒ…‘™Ž‡†‰‡–•–‘•‡”˜‡ƒ•‹–‹ƒ–‹‘•Ǥ
Ȉ ƒƒ…Š‡‡‹–”‘†—…‡†‹ͳͻͻͻ–‘Š‘‘—”†‡•‡”˜‹‰–ƒš’ƒ›‡”•Ǥ
ʹͲͲͲ Ȉ Š‡’”‘…‡••‘ˆ‹’Ž‡‡–ƒ–‹‘‘ˆ”‡•–”—…–—”‹‰‘ˆ–Š‡‡’ƒ”–‡–…‘‡…‡†–‘‹…”‡ƒ•‡
‡ˆϐ‹…‹‡…›ƒ†–‘†‡ƒŽ™‹–Š‹…”‡ƒ•‡†™‘”Ž‘ƒ†Ǥ
Ȉ ‘–ƒŽ•ƒ…–‹‘‡†™‘”ˆ‘”…‡”‡†—…‡†ˆ”‘͸ͳǡͲ͵ͳ–‘ͷͺǡ͵ͳͷǤ
Ȉ ‡”–ƒ‹”ƒ–‹‘ƒŽ‹•ƒ–‹‘‡ƒ•—”‡•ƒ–•–”—…–—”ƒŽŽ‡˜‡Ž•‹–”‘†—…‡†Ǥ
Ȉ –‡”‡•–Ǧ–ƒš…––‡”‹ƒ–‡†™‹–Š‡ˆˆ‡…–ˆ”‘ͳǦͶǦʹͲͲͲǤ
ʹͲͲͳ Ȉ Š‡ ”‡•–”—…–—”‹‰ ‘ˆ –Š‡ ‡’ƒ”–‡– ”‡•—Ž–‡† ‹ ”‡†—…‹‰ –Š‡ •–ƒ‰ƒ–‹‘ ƒ– ƒŽŽ Ž‡˜‡Ž• ƒ†
Žƒ”‰‡—„‡”‘ˆ’‡”•‘‡Ž™‡”‡’”‘‘–‡†‹˜ƒ”‹‘—•‰”ƒ†‡•Ǥ
Ȉ —”‹•†‹…–‹‘’ƒ––‡”™ƒ•”‡˜ƒ’‡†Ǥ
Ȉ ‡™’‘•–•™‡”‡…”‡ƒ–‡†ƒ––Š‡Ž‡˜‡Ž‘ˆ
Ȁ‹–Š‡ƒ”‡ƒ•‘ˆ‡•‡ƒ”…Šǡ–‡”ƒ–‹‘ƒŽ
ƒšƒ–‹‘ƒ†ˆ”ƒ•–”—…–—”‡Ǥ
ʹͲͲʹ Ȉ ‘’—–‡”‹•‡†’”‘…‡••‹‰‘ˆ”‡–—”•ƒŽŽ‘˜‡”–Š‡…‘—–”›‹–”‘†—…‡†Ǥ
Ȉ ‡Žƒ”‘‹––‡‡‡’‘”–Ǥ
ʹͲͲ͵ Ȉ Š‡ƒ–‹‘ƒŽ‡„•‹–‡‘ˆ–Š‡‡’ƒ”–‡–ȋ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȍ™‘–Š‡‹Ž˜‡”‡†ƒŽ ‹
–Š‡…ƒ–‡‰‘”›‘ˆ–Š‡Ǯ
‘˜‡”‡–‡„•‹–‡•ǯ—†‡”–Š‡ƒ–‹‘ƒŽ‡Ǧ
‘˜‡”ƒ…‡™ƒ”†•Ǥ
ʹͲͲͶ Ȉ •ƒ‡ƒ•—”‡‘ˆ™‹†‡‹‰‘ˆ–ƒš„ƒ•‡ǡ–Š‡…‘…‡’–‘ˆȋ—ƒŽˆ‘”ƒ–‹‘‡–—”Ȍ™ƒ•
‹–”‘†—…‡†Ǥ
Ȉ ”‹‰‡‡‡ϐ‹–ƒšȋ Ȍ™ƒ•‹–”‘†—…‡†ƒ•ƒƒŒ‘”•–‡’–‘™ƒ”†•™‹†‡‹‰‘ˆ–ƒš„ƒ•‡ƒ†
„‘Ž•–‡”‹‰‘ˆ–Š‡‹”‡…–ƒš‘ŽŽ‡…–‹‘Ǥ
Ȉ ‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒšȋȌ™ƒ•‹–”‘†—…‡†Ǥ
ʹͲͲͷ Ȉ ‘ƒ‰‡ƒš™ƒ•‹–”‘†—…‡†ˆ‘”–Š‡Š‹’’‹‰‘’ƒ‹‡•Ǥ
Ȉ ƒ‹‰ƒ•Š”ƒ•ƒ…–‹‘ƒšȋȌ™ƒ•‹–”‘†—…‡†™Ǥ‡ǤˆǤͲͳǦͲ͸ǦʹͲͲͷǤ
ʹͲͲ͸ Ȉ ’”‘Œ‡…–ˆ‘”‡ƒ„Ž‹‰‡Ž‡…–”‘‹…ϐ‹Ž‹‰ȋ‡Ǧϐ‹Ž‹‰Ȍ‘ˆ…‘‡ƒš‡–—”•™ƒ•Žƒ—…Š‡†Ǥ
Ȉ ƒš‡–—””‡’ƒ”‡”…Š‡‡ȋȌ™ƒ•Žƒ—…Š‡†–‘ƒ••‹•–‹†‹˜‹†—ƒŽ•ƒ† –ƒš’ƒ›‡”•
–‘ϐ‹Ž‡–Š‡‹”‡–—”‘ˆ…‘‡Ǥ
Ȉ Š‡‹•–‹–—–‹‘‘ˆ…‘‡ƒš„—†•ƒ•‡–—’‹ͳʹ…‹–‹‡•–Š”‘—‰Š‘—––Š‡…‘—–”›–‘Ž‘‘
‹–‘–ƒš”‡Žƒ–‡†‰”‹‡˜ƒ…‡•‘ˆ–Š‡…‘‘’—„Ž‹…Ǥ
ʹͲͲ͹ Ȉ Š‡‡ˆ—†ƒ‡”…Š‡‡™ƒ•Žƒ—…Š‡†‹‡ŽŠ‹ƒ†ƒ–ƒ…Šƒ”‰‡•Ǥ
Ȉ ‡˜‘––ƒ…Š‡‡™ƒ•Žƒ—…Š‡†–‘•–ƒ†ƒ”†‹œ‡•‡”˜‹…‡†‡Ž‹˜‡”›–‘–Š‡–ƒš’ƒ›‡”•Ǥ
Ȉ Š‡ϐ‹”•–…‹–‹œ‡Ǧˆ”‹‡†Ž›•‹‰Ž‡™‹†‘™ƒ›ƒƒ”‡˜ƒ‡†”ƒȋȌ™ƒ••‡–—’ǡˆ‘”…‡–”ƒŽ‹œ‡†
”‡…‡‹’–ƒ†”‡‰‹•–”ƒ–‹‘‘ˆ•’‡…‹ϐ‹‡†…ƒ–‡‰‘”‹‡•‘ˆ†‘…—‡–•ǡ‹…Ž—†‹‰‹…‘‡–ƒš”‡–—”•Ǥ
Ȉ Š‡ …‘‡ ƒš ‡’ƒ”–‡– „‡…ƒ‡ –Š‡ „‹‰‰‡•– ”‡˜‡—‡ ‘„‹Ž‹•‡” ˆ‘” –Š‡
‘˜‡”‡– ‹
ʹͲͲ͹ǦͲͺǡ™‹–Š‹–••Šƒ”‡‹…”‡ƒ•‹‰ˆ”‘͵ͶǤ͹͸Ψ‹ͳͻͻ͹Ǧͻͺ–‘ͷʹǤ͹ͷΨ‹ʹͲͲ͹ǦͲͺǤ
Ȉ ŽŽ †‹ƒ ƒš ‡–™‘” ȋȌ ™ƒ• •‡–—’ …‘‡…–‹‰ ‘”‡ –Šƒ ͹ͲͲ ‘ˆϐ‹…‡• ‹ ‘”‡
–Šƒ ͷͲͲ …‹–‹‡•Ǥ ‘•‘Ž‹†ƒ–‹‘ ‘ˆ ͵͸ ȋȌ ‹†‡’‡†‡– ”‡‰‹‘ƒŽ †ƒ–ƒ„ƒ•‡• ‹–‘ ƒ •‹‰Ž‡
…‡–”ƒŽ‹œ‡††ƒ–ƒ„ƒ•‡ȋ‘””‹ƒ”›ƒ–ƒ‡–”‡Ȍ™ƒ•…ƒ””‹‡†‘—–Ǥ
Ȉ –‡‰”ƒ–‡† ƒš’ƒ›‡” ƒ–ƒ ƒƒ‰‡‡– ›•–‡ ȋȌ ˆ‘” †”ƒ™‹‰ ‘ˆ ͵͸Ͳι –ƒš’ƒ›‡”
’”‘ϐ‹Ž‡™ƒ•Žƒ—…Š‡†Ǥ
 Lesson 1 Ȉ Direct Taxes – At a Glance 17

Year Event
ʹͲͲͺ Ȉ ›„‡” ‘”‡•‹… ƒ„• ™‡”‡ •‡–—’ –‘ ‹†‡–‹ˆ› ”‡Ž‡˜ƒ– †‹‰‹–ƒŽ †ƒ–ƒ †—”‹‰ •‡ƒ”…Š ƒ† •—”˜‡›
‘’‡”ƒ–‹‘•ǡ”‡…‘˜‡”Š‹††‡‘”’ƒ••™‘”†’”‘–‡…–‡†‘”†‡Ž‡–‡††ƒ–ƒƒ†•–‘”‡”‡–”‹‡˜‡††ƒ–ƒ ‹
ƒƒ‡”•‘–Šƒ–‹–…‘—Ž†„‡—•‡†ƒ•‡˜‹†‡…‡‹Œ—†‹…‹ƒŽ’”‘…‡‡†‹‰•Ǥ
Ȉ Ž‡…–”‘‹… ϐ‹Ž‹‰ ‘ˆ …‘‡ ƒš ‡–—”• ”‘Œ‡…– ™ƒ• ƒ™ƒ”†‡† ‹Ž˜‡” ™ƒ”† ‹ –Š‡ …ƒ–‡‰‘”›
Dz—–•–ƒ†‹‰ ‡”ˆ‘”ƒ…‡ ‹ ‹–‹œ‡ ‡–”‹… ‡”˜‹…‡ ‡Ž‹˜‡”›dz —†‡” –Š‡ ƒ–‹‘ƒŽ
‡Ǧ
‘˜‡”ƒ…‡™ƒ”†•ˆ‘”–Š‡›‡ƒ”ʹͲͲ͹ǦͲͺǤ

ʹͲͲͻ Ȉ ‡–”ƒŽ‹œ‡† ”‘…‡••‹‰ ‡–”‡ ™ƒ• •‡–—’ ‹ ‡‰ƒŽ—”— ˆ‘” „—Ž ’”‘…‡••‹‰ ‘ˆ ‡Ǧϐ‹Ž‡† ƒ†’ƒ’‡”
”‡–—”•ǤŠ‡‡–”‡‘’‡”ƒ–‡•™‹–Š‘—–ƒ›‹–‡”ˆƒ…‡™‹–Š–ƒš’ƒ›‡”•‹ƒŒ—”‹•†‹…–‹‘Ȃ ˆ”‡‡ƒ‡”Ǥ
ʹͲͳͲ Ȉ –‡‰”ƒ–‡†ƒšƒ›‡”ƒ–ƒƒƒ‰‡‡–›•–‡ȋȌ™ƒ•…‘ˆ‡””‡†–Š‡”‹‡‹‹•–‡”ǯ•
™ƒ”†ˆ‘”Ǯš…‡ŽŽ‡…‡‹
‘˜‡”ƒ…‡ƒ††‹‹•–”ƒ–‹‘ǯǤ
Ȉ  ‡‰ƒŽ—”— ƒ™ƒ”†‡† –Š‡
‘Ž† ™ƒ”† ˆ‘” Ǯš…‡ŽŽ‡…‡ ‹
‘˜‡”‡– ”‘…‡••
‡Ǧ ‡‰‹‡‡”‹‰ǯ—†‡”–Š‡ƒ–‹‘ƒŽ‡Ǧ
‘˜‡”ƒ…‡™ƒ”†•ˆ‘”–Š‡›‡ƒ”ʹͲͳͲǦʹͲͳͳǤ
Ȉ ‘ •‹’Ž‹ˆ› –Š‡ ͷͲ ›‡ƒ”• ‘Ž† …‘‡Ǧƒš …–ǡ ͳͻ͸ͳ Š‡ ‹”‡…– ƒš‡• ‘†‡ ‹ŽŽǡ ʹͲͳͲǯ ™ƒ•
–”‘†—…‡†‹–Š‡ƒ”Ž‹ƒ‡–Ǥ

ʹͲͳͳ Ȉ ‘”‡‹‰ ƒš ‹˜‹•‹‘ ‘ˆ  ™ƒ• •–”‡‰–Š‡‡† –‘ ‡ˆˆ‡…–‹˜‡Ž› Šƒ†Ž‡ –Š‡ ‹…”‡ƒ•‡ ‹ –ƒš
‹ˆ‘”ƒ–‹‘‡š…Šƒ‰‡ƒ†–”ƒ•ˆ‡”’”‹…‹‰‹••—‡•Ǥ
Ȉ ƒ”‹‘—• ‹‹–‹ƒ–‹˜‡• ™‡”‡ –ƒ‡ ˆ‘” ‡ˆϐ‹…‹‡– –ƒš ƒ†‹‹•–”ƒ–‹‘Ǥ Š‡•‡ ‹…Ž—†‡ ‡Ǧϐ‹Ž‹‰ ƒ†
‡Ǧ’ƒ›‡– ‘ˆ –ƒš‡•ǡ ƒ†‘’–‹‘ ‘ˆ Ǯ‡˜‘––ƒǯ …‘…‡’– „›  ƒ† ǡ ™‡„ „ƒ•‡†ˆƒ…‹Ž‹–›
ˆ‘” –ƒš ’ƒ›‡”• –‘ –”ƒ… –Š‡ ”‡•‘Ž—–‹‘ ‘ˆ ”‡ˆ—†• ƒ† …”‡†‹– ˆ‘” ’”‡Ǧ’ƒ‹† –ƒš‡• ƒ†
ƒ—‰‡–ƒ–‹‘‘ˆ’”‘…‡••‹‰…ƒ’ƒ…‹–›Ǥ
Ȉ ‡™•‹’Ž‹ϐ‹‡†ˆ‘”Ǯ—‰ƒǯ™ƒ•‹–”‘†—…‡†–‘”‡†—…‡–Š‡…‘’Ž‹ƒ…‡„—”†‡‘ˆ•ƒŽŽ–ƒš
’ƒ›‡”•ˆƒŽŽ‹‰™‹–Š‹’”‡•—’–‹˜‡–ƒšƒ–‹‘Ǥ
ʹͲͳʹ Ȉ ‡‹‘” ‹–‹œ‡• ȋ‘– Šƒ˜‹‰ ƒ› ‹…‘‡ ˆ”‘ „—•‹‡••Ȁ’”‘ˆ‡••‹‘Ȍǡ ™‡”‡ ‡š‡’–‡† ˆ”‘
’ƒ›‡–‘ˆƒ†˜ƒ…‡–ƒšǤ
Ȉ ȋ‡…‘…‹Ž‹ƒ–‹‘ǡ……‘—–‹‰ƒ†‘””‡…–‹‘ƒ„Ž‹‰›•–‡ȌŽƒ—…Š‡†–‘•‡”˜‡
ƒ‹–‡‰”ƒ–‡†‘‡Ǧ•–‘’’Žƒ–ˆ‘”ˆ‘”–Š‡•–ƒ‡Š‘Ž†‡”•–‘ˆƒ…‹Ž‹–ƒ–‡–Š‡•‡”˜‹…‡•”‡Žƒ–‡† –‘
‘’‡”ƒ–‹‘•Ǥ
ʹͲͳͶ Ȉ ‡™ ƒ–‹‘ƒŽ ‡„•‹–‡ ‘ˆ –Š‡ …‘‡ ƒš ‡’ƒ”–‡– ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹ Žƒ—…Š‡†
™‹–Š‡Šƒ…‡†‡™ˆ‡ƒ–—”‡•ƒ†…‘–‡–Ǥ
Ȉ –‘‹˜‡•–‹‰ƒ–‡Žƒ…‘‡›‹™‹••ƒ……‘—–•ˆ‘”‡†Ǥ
Ȉ ƒš†‹‹•–”ƒ–‹˜‡‡ˆ‘”•‘‹••‹‘ȋȌŠ‡ƒ†‡†„›”Ǥƒ”–Šƒ•ƒ”ƒ–Š‹Š‘‡•—„‹––‡†
‹–•”‡’‘”–‘ˆ”‡˜‹‡™‹‰–Š‡ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ–ƒš’‘Ž‹…‹‡•ƒ†–ƒšŽƒ™•‹–Š‡…‘–‡š–‘ˆ‰Ž‘„ƒŽ„‡•–
’”ƒ…–‹…‡•ƒ†”‡…‘‡†‹‰‡ƒ•—”‡•ˆ‘””‡ˆ‘”•”‡“—‹”‡†‹–ƒšƒ†‹‹•–”ƒ–‹‘–‘‡Šƒ…‡
‹–•‡ˆˆ‡…–‹˜‡‡••ƒ†‡ˆϐ‹…‹‡…›Ǥ

TAX STRUCTURE IN INDIA

Constitution of India
Š‡”‘‘–•‘ˆ‡˜‡”›Žƒ™‹†‹ƒŽ‹‡•‹–Š‡‘•–‹–—–‹‘ǡ–Š‡”‡ˆ‘”‡—†‡”•–ƒ†‹‰–Š‡’”‘˜‹•‹‘•‘ˆ‘•–‹–—–‹‘‹•
ˆ‘”‡‘•––‘Šƒ˜‡…Ž‡ƒ”—†‡”•–ƒ†‹‰‘ˆƒ›Žƒ™Ǥ‡–—•ϐ‹”•–—†‡”•–ƒ†™Šƒ–‹––ƒŽ•ƒ„‘—––ƒšǣ
Ȉ ”–‹…Ž‡ʹ͸ͷǣ‘–ƒš•ŠƒŽŽ„‡Ž‡˜‹‡†‘”…‘ŽŽ‡…–‡†‡š…‡’–„›–Š‡—–Š‘”‹–›‘ˆƒ™Ǥ
Ȉ ”–‹…Ž‡ʹͶ͸ǣ‹•–”‹„—–‡•Ž‡‰‹•Žƒ–‹˜‡’‘™‡”•‹…Ž—†‹‰–ƒšƒ–‹‘ǡ„‡–™‡‡–Š‡ƒ”Ž‹ƒ‡–‘ˆ†‹ƒƒ†–Š‡–ƒ–‡
‡‰‹•Žƒ–—”‡Ǥ
 18 Lesson 1 Ȉ EP-TL

Ȉ …Š‡†—Ž‡Ǧ—‡”ƒ–‡•’‘™‡”•—†‡”–Š”‡‡Ž‹•–•
Ȉ ‹‘‹•–ǣ‘™‡”•‘ˆ‡–”ƒŽ
‘˜‡”‡–
Ȉ ‡‰‹•Žƒ–‹˜‡‹•–ǣ‘™‡”•‘ˆ–ƒ–‡
‘˜‡”‡–
Ȉ ‘…—””‡– ‹•–ǣ ‘–Š ‡–”ƒŽ ƒ† –ƒ–‡
‘˜‡”‡– Šƒ˜‡ ’‘™‡”•ǡ ‹ …ƒ•‡ ‘ˆ …‘ϐŽ‹…–Ǣ Žƒ™ ƒ†‡ „›
‹‘
‘˜‡”‡–’”‡˜ƒ‹Ž•Ǥ
‘‡‘ˆ–Š‡ƒŒ‘”–ƒš‡•—†‡””‡•’‡…–‹˜‡Ž‹•–•ƒ”‡ǣǦ

Central Government

Ȉ —•–‘•‹…Ž—†‹‰‡š’‘”–†—–‹‡•
Ȉ š…‹•‡‘‘„ƒ……‘ƒ†‘–Š‡”‰‘‘†•ƒ—ˆƒ…–—”‡†‹†‹ƒ‡š…‡’–ƒŽ…‘Š‘Ž‹…Ž‹“—‘”•ˆ‘”Š—ƒ…‘•—’–‹‘ǡ
‘’‹—ǡƒ”…‘–‹…†”—‰•
Ȉ ‘”’‘”ƒ–‹‘ƒš
Ȉ ƒš‡•‘‹–‡”Ǧ•–ƒ–‡–”ƒ†‡‘ˆ‰‘‘†•‘–Š‡”–Šƒ‡™•’ƒ’‡”•
Ȉ ƒš‡•‘‹–‡”Ǧ•–ƒ–‡…‘•‹‰‡–‘ˆ‰‘‘†•
Ȉ ›‘–Š‡”ƒ––‡”‘–‹…Ž—†‡†‹‹•–‘”

State Government

Ȉ ƒš‡•‘ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡
Ȉ š…‹•‡†—–›‘ƒŽ…‘Š‘Ž‹…Ž‹“—‘”•ǡ‘’‹—ƒ†ƒ”…‘–‹…•
Ȉ …–”‘‹‘”–”›ƒš
Ȉ ƒš‘‹–”ƒ•–ƒ–‡–”ƒ†‡‘ˆ‰‘‘†•‘–Š‡”–Šƒ‡™•’ƒ’‡”•
Ȉ ƒš‘ƒ†˜‡”–‹•‡‡–•‘–Š‡”–Šƒ–Šƒ–‹‡™•’ƒ’‡”•
Ȉ ƒš‘‰‘‘†•ƒ†’ƒ••‡‰‡”•…ƒ””‹‡†„›”‘ƒ†‘”‹Žƒ†™ƒ–‡”™ƒ›•
Ȉ ƒš‘’”‘ˆ‡••‹‘ƒŽ•ǡ–”ƒ†‡•ǡ…ƒŽŽ‹‰•ƒ†‡’Ž‘›‡–

ADMINISTRATION
Š‡‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡‘”‡’ƒ”–‡–‘ˆ‡˜‡—‡‹•–Š‡ƒ’‡š„‘†›…Šƒ”‰‡†™‹–Š–Š‡ƒ†‹‹•–”ƒ–‹‘‘ˆ–ƒš‡•Ǥ
–‹•ƒ’ƒ”–‘ˆ‹‹•–”›‘ˆ ‹ƒ…‡™Š‹…Š…ƒ‡‹–‘‡š‹•–‡…‡ƒ•ƒ”‡•—Ž–‘ˆ–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–ǡͳͻʹͶǤ
‹–‹ƒŽŽ› –Š‡ ‘ƒ”† ™ƒ• ‹ …Šƒ”‰‡ ‘ˆ „‘–Š †‹”‡…– ƒ† ‹†‹”‡…– –ƒš‡•Ǥ ‘™‡˜‡”ǡ ™Š‡ –Š‡ ƒ†‹‹•–”ƒ–‹‘ ‘ˆ –ƒš‡•
„‡…ƒ‡–‘‘—™‹‡Ž†›ˆ‘”‘‡‘ƒ”†–‘Šƒ†Ž‡ǡ–Š‡‘ƒ”†™ƒ••’Ž‹–—’‹–‘–™‘ǡƒ‡Ž›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–
ƒš‡•ȋȌƒ†‡–”ƒŽ‘ƒ”†‘ˆš…‹•‡ƒ†—•–‘•ȋȌ™‹–Š‡ˆˆ‡…–ˆ”‘ͳ•– ƒ—ƒ”›ǡͳͻ͸ͶǤŠ‹•„‹ˆ—”…ƒ–‹‘
™ƒ•„”‘—‰Š–ƒ„‘—–„›…‘•–‹–—–‹‘‘ˆ–Š‡–™‘‘ƒ”†•—†‡”‡…–‹‘͵‘ˆ–Š‡‡–”ƒŽ‘ƒ”†•‘ˆ‡˜‡—‡…–ǡͳͻ͸͵Ǥ

Central Board of Direct Taxes

Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•ȋȌ’”‘˜‹†‡•‡••‡–‹ƒŽ‹’—–•ˆ‘”’‘Ž‹…›ƒ†’Žƒ‹‰‘ˆ†‹”‡…––ƒš‡•‹†‹ƒ
ƒ†‹•ƒŽ•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ†‹‹•–”ƒ–‹‘‘ˆ–Š‡†‹”‡…––ƒšŽƒ™•–Š”‘—‰Š…‘‡ƒš‡’ƒ”–‡–ǤŠ‡‹•ƒ
•–ƒ–—–‘”›ƒ—–Š‘”‹–›ˆ—…–‹‘‹‰—†‡”–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–ǡͳͻ͸͵Ǥ–‹•†‹ƒǯ•‘ˆϐ‹…‹ƒŽ ‹ƒ…‹ƒŽ…–‹‘
ƒ• ‘”…‡ȋ  Ȍ—‹–Ǥ

Organisational Structure
Š‡‹•Š‡ƒ†‡†„›Šƒ‹”ƒƒ†ƒŽ•‘…‘’”‹•‡••‹š‡„‡”•ǤŠ‡Šƒ‹”’‡”•‘Š‘Ž†•–Š‡”ƒ‘ˆ’‡…‹ƒŽ
‡…”‡–ƒ”›–‘
‘˜‡”‡–‘ˆ†‹ƒ™Š‹Ž‡–Š‡‡„‡”•”ƒ‘ˆ††‹–‹‘ƒŽ‡…”‡–ƒ”›–‘
‘˜‡”‡–‘ˆ†‹ƒǤ
 Lesson 1 Ȉ Direct Taxes – At a Glance 19

Ȉ ‡„‡”ȋ…‘‡ƒšȌ
Ȉ ‡„‡”ȋ‡‰‹•Žƒ–‹‘ƒ†‘’—–‡”‹•ƒ–‹‘Ȍ
Ȉ ‡„‡”ȋ‡˜‡—‡Ȍ
Ȉ ‡„‡”ȋ‡”•‘‡ŽƬ‹‰‹Žƒ…‡Ȍ
Ȉ ‡„‡”ȋ˜‡•–‹‰ƒ–‹‘Ȍ
Ȉ ‡„‡”ȋ—†‹–Ƭ —†‹…‹ƒŽȌ
Š‡Šƒ‹”ƒƒ†‡„‡”•‘ˆƒ”‡•‡Ž‡…–‡†ˆ”‘†‹ƒ‡˜‡—‡‡”˜‹…‡ȋȌǡƒ’”‡‹‡”…‹˜‹Ž•‡”˜‹…‡
‘ˆ†‹ƒǡ™Š‘•‡‡„‡”•…‘•–‹–—–‡–Š‡–‘’ƒƒ‰‡‡–‘ˆ…‘‡ƒš‡’ƒ”–‡–Ǥ

Income Tax Department

…‘‡ƒš‡’ƒ”–‡–ˆ—…–‹‘•—†‡”–Š‡‡’ƒ”–‡–‘ˆ‡˜‡—‡‹‹‹•–”›‘ˆ ‹ƒ…‡Ǥ–‹•”‡•’‘•‹„Ž‡ˆ‘”
ƒ†‹‹•–‡”‹‰ˆ‘ŽŽ‘™‹‰†‹”‡…––ƒšƒ–‹‘ƒ…–•’ƒ••‡†„›ƒ”Ž‹ƒ‡–Ǥ
Ȉ …‘‡ƒš…–ǡͳͻ͸ͳ
Ȉ ƒ”‹‘—• ‹ƒ…‡…–•ȋƒ••‡†˜‡”›‡ƒ”‹—†‰‡–‡••‹‘Ȍ
…‘‡ƒš‡’ƒ”–‡–‹•ƒŽ•‘”‡•’‘•‹„Ž‡ˆ‘”‡ˆ‘”…‹‰‘—„Ž‡ƒšƒ–‹‘˜‘‹†ƒ…‡‰”‡‡‡–•ƒ††‡ƒŽ•™‹–Š
˜ƒ”‹‘—•ƒ•’‡…–•‘ˆ‹–‡”ƒ–‹‘ƒŽ–ƒšƒ–‹‘•—…Šƒ•”ƒ•ˆ‡””‹…‹‰Ǥ…‘‡ƒš‡’ƒ”–‡–Šƒ•’‘™‡”•–‘…‘„ƒ–
ƒ‰‰”‡••‹˜‡ƒšƒ˜‘‹†ƒ…‡„›‡ˆ‘”…‹‰
‡‡”ƒŽ–‹˜‘‹†ƒ…‡—Ž‡•Ǥ

Central Board of Indirect Taxes and Customs

‡–”ƒŽ‘ƒ”†‘ˆš…‹•‡ƒ†—•–‘•ȋȌ‹•ƒ’ƒ”–‘ˆ–Š‡‡’ƒ”–‡–‘ˆ‡˜‡—‡—†‡”–Š‡‹‹•–”›‘ˆ ‹ƒ…‡ǡ

‘˜‡”‡–‘ˆ†‹ƒǤ–†‡ƒŽ•™‹–Š–Š‡–ƒ••‘ˆˆ‘”—Žƒ–‹‘‘ˆ’‘Ž‹…›…‘…‡”‹‰Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ—•–‘•ƒ†

ǡ’”‡˜‡–‹‘‘ˆ•—‰‰Ž‹‰ƒ†ƒ†‹‹•–”ƒ–‹‘‘ˆƒ––‡”•”‡Žƒ–‹‰–‘—•–‘•ǡ
ƒ†ƒ”…‘–‹…•–‘–Š‡‡š–‡–
—†‡”ǯ•’—”˜‹‡™Ǥ

GST Council

‘—…‹Ž…‘•‹•–‹‰‘ˆ”‡’”‡•‡–ƒ–‹˜‡•ˆ”‘–Š‡‡–”‡ƒ•™‡ŽŽƒ•–ƒ–‡Šƒ•„‡‡ˆ‘”—Žƒ–‡†—†‡”–Š‡
Ī
‘ˆ‹†‹”‡…––ƒš‡•ǤŠ‡‘—…‹Ž™‹ŽŽƒ‡”‡…‘‡†ƒ–‹‘•–‘–Š‡‹‘ƒ†–Š‡–ƒ–‡•‘
‘‘†•ƒ†‡”˜‹…‡ƒš
Žƒ™•ǡ‘ƒ›‘–Š‡”ƒ––‡””‡Žƒ–‹‰–‘
Ǥ
‹ŽŽ†ƒ–‡ǡ—‡”‘—•…‘…Ž—•‹˜‡‡‡–‹‰•‘ˆ
‘—…‹ŽŠƒ˜‡„‡‡—†‡”–ƒ‡Ǥ‡…‹•‹‘•Šƒ˜‡„‡‡–ƒ‡”‡‰ƒ”†‹‰
”ƒ–‡•ǡ…‘’‘•‹–‹‘•…Š‡‡ǡ‡š‡’–‹‘•…Š‡‡•–‘‘”–ŠǦƒ•–‡”ƒ†Š‹ŽŽ›ƒ”‡ƒ•ǡ…‘’‡•ƒ–‹‘‡–Š‘†ˆ‘”Ž‘••‘ˆ
”‡˜‡—‡ –‘ •–ƒ–‡• ‡–…Ǥ —Ž‡• ”‡‰ƒ”†‹‰ ”‡–—”ǡ ”‡ˆ—†ǡ ”‡‰‹•–”ƒ–‹‘ǡ ’ƒ›‡–ǡ ‹˜‘‹…‹‰ ƒ† –Š‡ Ž‹‡ Šƒ˜‡ „‡‡
ϐ‹ƒŽ‹œ‡†„›–Š‡•ƒ‡Ǥ‘™‡˜‡”ǡ˜ƒ”‹‘—•‘–Š‡”‹••—‡•ƒ†‘†ƒŽ‹–‹‡•”‡‰ƒ”†‹‰–Š‡
ƒ”‡…‘•–ƒ–Ž›„‡‹‰†‹•…—••‡†
ƒ––Š‡
‘—…‹Ž‡‡–‹‰•ˆ‘”•‘‘–Š‡‹‰–Š‡Žƒ™ƒ†ƒ‹‰‹–‡ƒ•›–‘‹’Ž‡‡–ˆ‘”•‘…‹‡–›ƒ–Žƒ”‰‡Ǥ

VITAL STATISTICS AND LAYOUT

Contribution of Direct Taxes to Total Tax Revenue

(•Ǥ‹…”‘”‡Ȍ

Direct Tax As % Of
Financial Year Direct Taxes Indirect Taxes Total Taxes
Total Taxes
ʹͲͲͲǦͲͳ ͸ͺ͵Ͳͷ ͳͳͻͺͳͶ ͳͺͺͳͳͻ ͵͸Ǥ͵ͳΨ

ʹͲͲͳǦͲʹ ͸ͻͳͻͺ ͳͳ͹͵ͳͺ ͳͺ͸ͷͳ͸ ͵͹ǤͳͲΨ

ʹͲͲʹǦͲ͵ ͺ͵Ͳͺͺ ͳ͵ʹ͸Ͳͺ ʹͳͷ͸ͻ͸ ͵ͺǤͷʹΨ

 20 Lesson 1 Ȉ EP-TL

Direct Tax As % Of
Financial Year Direct Taxes Indirect Taxes Total Taxes
Total Taxes
ʹͲͲ͵ǦͲͶ ͳͲͷͲͺͺ ͳͶͺ͸Ͳͺ ʹͷ͵͸ͻ͸ ͶͳǤͶʹΨ
ʹͲͲͶǦͲͷ ͳ͵ʹ͹͹ͳ ͳ͹Ͳͻ͵͸ ͵Ͳ͵͹Ͳ͹ Ͷ͵Ǥ͹ʹΨ
ʹͲͲͷǦͲ͸ ͳ͸ͷʹͳ͸ ͳͻͻ͵Ͷͺ ͵͸Ͷͷ͸Ͷ ͶͷǤ͵ʹΨ
ʹͲͲ͸ǦͲ͹ ʹ͵Ͳͳͺͳ ʹͶͳͷ͵ͺ Ͷ͹ͳ͹ͳͻ ͶͺǤͺͲΨ
ʹͲͲ͹ǦͲͺ ͵ͳͶ͵͵Ͳ ʹ͹ͻͲ͵ͳ ͷͻ͵͵͸ͳ ͷʹǤͻ͹Ψ
ʹͲͲͺǦͲͻ ͵͵͵ͺͳͺ ʹ͸ͻͶ͵͵ ͸Ͳ͵ʹͷͳ ͷͷǤ͵ͶΨ
ʹͲͲͻǦͳͲ ͵͹ͺͲ͸͵ ʹͶ͵ͻ͵ͻ ͸ʹʹͲͲʹ ͸ͲǤ͹ͺΨ
ʹͲͳͲǦͳͳ ͶͶͷͻͻͷ ͵Ͷ͵͹ͳ͸ ͹ͺͻ͹ͳͳ ͷ͸ǤͶͺΨ
ʹͲͳͳǦͳʹ Ͷͻ͵ͻͺ͹ ͵ͻͲͻͷ͵ ͺͺͶͻͶͲ ͷͷǤͺʹΨ
ʹͲͳʹǦͳ͵ ͷͷͺͻͺͻ Ͷ͹ʹͻͳͷ ͳͲ͵ͳͻͲͶ ͷͶǤͳ͹Ψ
ʹͲͳ͵ǦͳͶ ͸͵ͺͷͻ͸ Ͷͻͷ͵Ͷ͹ ͳͳ͵͵ͻͶ͵ ͷ͸Ǥ͵ʹΨ
ʹͲͳͶǦͳͷ ͸ͻͷ͹ͻʹ ͷͶ͵ʹͳͷ ͳʹ͵ͻͲͲ͹ ͷ͸Ǥͳ͸Ψ
ʹͲͳͷǦͳ͸ ͹ͶͳͻͶͷ ͹ͳͳͺͺͷ ͳͶͷͶͳͺͲ ͷͳǤͲ͵Ψ
ʹͲͳ͸Ǧͳ͹ ͺͶͻͺͳͺ ͺ͸ͳͷͳͷ ͳ͹ͳͳ͵͵͵ ͶͻǤ͸͸Ψ
ʹͲͳ͹Ǧͳͺ ͳͲͲʹͲ͵͹ ͻͳͷʹͷ͸ ͳͻͳͺʹͳͲ ͷʹǤʹͶΨ
ʹͲͳͺǦͳͻ ͳͳ͵͹͸ͺͷ ͻ͵ͻͲͳͺ ʹͲ͹͸͹Ͳ͵ ͷͶǤ͹ͺΨ

ȗ”‘˜‹•‹‘ƒŽ
ȋ‘—”…‡ǦŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁ‘…—‡–•Ȁ‹”‡…–ά͸Ͷƒšά͸Ͷƒ–ƒȀǦ‡’ƒ”–‡–Ǧ‹‡Ǧ‡”‹‡•Ǧ ƒ–ƒǦ
Ǧ͸ͶͶͶǦͶͷǦ–‘Ǧ͸Ͷͷ;ǦͷͿǤ’†ˆȌ

Direct-Tax GDP Ratio

(•Ǥ‹…”‘”‡Ȍ

Financial Net Collection GDP Current Direct Tax GDP Growth Tax Growth Buoyancy
year of Direct Taxes Market Price GDP Ratio Rate Rate Factor
ʹͲͲͲǦͲͳ ͸ͺ͵Ͳͷ ʹͳͲʹ͵͹͸ ͵ǤʹͷΨ ͹Ǥ͹Ψ ͳ͹ǤͺͷΨ ʹǤ͵ʹ
ʹͲͲͳǦͲʹ ͸ͻͳͻͺ ʹʹͺͳͲͷͺ ͵ǤͲ͵Ψ ͺǤͷΨ ͳǤ͵ͳΨ ͲǤͳͷ
ʹͲͲʹǦͲ͵ ͺ͵Ͳͺͺ ʹͶͷͺͲͺͶ ͵Ǥ͵ͺΨ ͹Ǥ͹͸Ψ ʹͲǤͲ͹Ψ ʹǤͷͻ
ʹͲͲ͵ǦͲͶ ͳͲͷͲͺͺ ʹ͹ͷͶ͸ʹͳ ͵ǤͺͳΨ ͳʹǤͲ͸Ψ ʹ͸ǤͶͺΨ ʹǤͳͻ
ʹͲͲͶǦͲͷ ͳ͵ʹ͹͹ͳ ͵ʹͶʹʹͲͻ ͶǤͳΨ ͳ͹Ǥ͹Ψ ʹ͸Ǥ͵ͶΨ ͳǤͶͻ
ʹͲͲͷǦͲ͸ ͳ͸ͷʹͳ͸ ͵͸ͻ͵͵͸ͻ ͶǤͶ͹Ψ ͳ͵ǤͻʹΨ ʹͶǤͶͶΨ ͳǤ͹͸
ʹͲͲ͸ǦͲ͹ ʹ͵Ͳͳͺͳ ͶʹͻͶ͹Ͳ͸ ͷǤ͵͸Ψ ͳ͸ǤʹͺΨ ͵ͻǤ͵ʹΨ ʹǤͶʹ
ʹͲͲ͹ǦͲͺ ͵ͳͶ͵͵Ͳ Ͷͻͺ͹ͲͻͲ ͸Ǥ͵Ψ ͳ͸ǤͳʹΨ ͵ͷǤͷ͸Ψ ʹǤʹ͹
ʹͲͲͺǦͲͻ ͵͵͵ͺͳͺ ͷ͸͵ͲͲ͸͵ ͷǤͻ͵Ψ ͳʹǤͺͻΨ ͸ǤʹͲΨ ͲǤͶͺ
ʹͲͲͻǦͳͲ ͵͹ͺͲ͸͵ ͸Ͷͷ͹͵ͷʹ ͷǤͺͷΨ ͳͶǤ͸ͻΨ ͳ͵ǤʹͷΨ ͲǤͻͲ
ʹͲͳͲǦͳͳ ͶͶͷͻͻͷ ͹͸͹ͶͳͶͺ ͷǤͺͳΨ ͳͺǤͺͶΨ ͳ͹Ǥͻ͹Ψ ͲǤͻͷ
ʹͲͳͳǦͳʹ Ͷͻ͵ͻͺ͹ ͻͲͲͻ͹ʹʹ ͷǤͶͺΨ ͳ͹ǤͶΨ ͳͲǤ͹͸Ψ ͲǤ͸ʹ
ʹͲͳʹǦͳ͵ ͷͷͺͻͺͻ ͳͲͳͳ͵ʹͺͳ ͷǤͷ͵Ψ ͳʹǤʹͷΨ ͳ͵Ǥͳ͸Ψ ͳǤͲ͹
ʹͲͳ͵ǦͳͶ ͸͵ͺͷͻ͸ ͳͳ͵ͷͷͲ͹͵ ͷǤ͸ʹΨ ͳʹǤʹͺΨ ͳͶǤʹͶΨ ͳǤͳ͸
 Lesson 1 Ȉ Direct Taxes – At a Glance 21

ʹͲͳͶǦͳͷ ͸ͻͷ͹ͻʹ ͳʹͷͶͳʹͲͺ ͷǤͷͷΨ ͳͲǤͶͷΨ ͺǤͻ͸Ψ ͲǤͺ͸

ʹͲͳͷǦͳ͸ ͹ͶͳͻͶͷ ͳ͵ͷ͸͹ͳͻʹ ͷǤͶ͹Ψ ͺǤʹͷΨ ͸Ǥ͸͵Ψ ͲǤͺͲ
ʹͲͳ͸Ǧͳ͹ ͺͶͻͺͳͺ ͳǡͷ͵ǡ͸ʹǡ͵ͺ͸ ͷǤͷ͵Ψ ͳ͵Ǥʹ͵Ψ ͳͶǤͷ͵Ψ ͳǤͳͲ
ʹͲͳ͹Ǧͳͺ ͳͲǡͲʹǡͲ͵͹ ͳǡ͹ͲǡͻͷǡͲͲͷ ͷǤͺ͸Ψ ͳͳǤʹͺΨ ͳ͹Ǥͻ͵Ψ ͳǤͷͻ
ʹͲͳͺǦͳͻ ͳͳǡ͵͹ǡ͸ͺͷ ͳǡͻͲǡͳͲǡͳ͸Ͷ̷ ͷǤͻͺΨ ͳͳǤʹͲΨ ͳ͵ǤͷͶΨ ͳǤʹͳ
*”‘˜‹•‹‘ƒŽ
̷†˜ƒ…‡•–‹ƒ–‡•ƒ•’‡””‡••‡Ž‡ƒ•‡†ƒ–‡†͵ͳǤͲͷǤʹͲͳͻ‘ˆǤ
ȋ‘—”…‡ǦŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁ‘…—‡–•Ȁ‹”‡…–ά͸Ͷƒšά͸Ͷƒ–ƒȀǦ‡’ƒ”–‡–Ǧ‹‡Ǧ‡”‹‡•Ǧ ƒ–ƒǦ
Ǧ͸ͶͶͶǦͶͷǦ–‘Ǧ͸Ͷͷ;ǦͷͿǤ’†ˆȌ

Cost of Collection
(•Ǥ‹…”‘”‡Ȍ

Financial Year Total Collections Total Expenditure Cost of Collection

ʹͲͲͲǦͲͳ ͸ͺ͵Ͳͷ ͻʹͻ ͳǤ͵͸Ψ

ʹͲͲͳǦͲʹ ͸ͻͳͻͺ ͻ͵͵ ͳǤ͵ͷΨ
ʹͲͲʹǦͲ͵ ͺ͵Ͳͺͺ ͻͺͶ ͳǤͳͺΨ
ʹͲͲ͵ǦͲͶ ͳͲͷͲͺͺ ͳͲͷͲ ͳǤͲͲΨ
ʹͲͲͶǦͲͷ ͳ͵ʹ͹͹ͳ ͳͳ͵ͺ ͲǤͺ͸Ψ
ʹͲͲͷǦͲ͸ ͳ͸ͷʹͳ͸ ͳͳͻͶ ͲǤ͹ʹΨ
ʹͲͲ͸ǦͲ͹ ʹ͵Ͳͳͺͳ ͳ͵Ͷͻ ͲǤͷͻΨ
ʹͲͲ͹ǦͲͺ ͵ͳͶ͵͵Ͳ ͳ͸ͺ͹ ͲǤͷͶΨ
ʹͲͲͺǦͲͻ ͵͵͵ͺͳͺ ʹʹͶͺ ͲǤ͸͹Ψ
ʹͲͲͻǦͳͲ ͵͹ͺͲ͸͵ ʹ͹ʹ͸ ͲǤ͹ʹΨ
ʹͲͳͲǦͳͳ ͶͶͷͻͻͷ ʹ͸ͻͺ ͲǤ͸ͲΨ
ʹͲͳͳǦͳʹ Ͷͻ͵ͻͺ͹ ʹͻ͹͸ ͲǤ͸ͲΨ
ʹͲͳʹǦͳ͵ ͷͷͺͻͺͻ ͵ʹͺ͵ ͲǤͷͻΨ
ʹͲͳ͵ǦͳͶ ͸͵ͺͷͻ͸ ͵͸Ͷͳ ͲǤͷ͹Ψ
ʹͲͳͶǦͳͷ ͸ͻͷ͹ͻʹ ͶͳͲͳ ͲǤͷͻΨ
ʹͲͳͷǦͳ͸ ͹ͶͳͻͶͷ Ͷͷͻ͵ ͲǤ͸ͳΨ
ʹͲͳ͸Ǧͳ͹ ͺͶͻͺͳͺ 5578 ͲǤ͸͸Ψ
ʹͲͳ͹Ǧͳͺ ͳͲǡͲʹǡͲ͵͹ ͸ǡͲͺ͹ ͲǤ͸ͳΨ
ʹͲͳͺǦͳͻ ͳͳǡ͵͹ǡ͸ͺͷ ͹Ͳ͹Ͷ ͲǤ͸ʹΨ
ȗ”‘˜‹•‹‘ƒŽ
ȗȋ‘—”…‡ǦŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁ‘…—‡–•Ȁ‹”‡…–ά͸Ͷƒšά͸Ͷƒ–ƒȀǦ‡’ƒ”–‡–Ǧ‹‡Ǧ‡”‹‡•Ǧ
ƒ–ƒǦ Ǧ͸ͶͶͶǦͶͷǦ–‘Ǧ͸Ͷͷ;ǦͷͿǤ’†ˆȌ
22 Lesson 1 Ȉ EP-TL

LESSON ROUND-UP

Ȉ Taxes: Š‡™‘”†–ƒš‹•„ƒ•‡†‘–Š‡Žƒ–‹™‘”†taxo™Š‹…Š‡ƒ•–‘‡•–‹ƒ–‡Ǥ‘–ƒš‡ƒ•–‘‹’‘•‡ƒ

ϐ‹ƒ…‹ƒŽ…Šƒ”‰‡‘”‘–Š‡”Ž‡˜›—’‘ƒ–ƒš’ƒ›‡”ǡƒ‹†‹˜‹†—ƒŽ‘”Ž‡‰ƒŽ‡–‹–›ǡ„›ƒ•–ƒ–‡‘”–Š‡ˆ—…–‹‘ƒŽ
‡“—‹˜ƒŽ‡–‘ˆƒ•–ƒ–‡•—…Š–Šƒ–ˆƒ‹Ž—”‡–‘’ƒ›‹•’—‹•Šƒ„Ž‡„›Žƒ™Ǥ
Ȉ Characteristics of Taxes:ƒš‹•…‘’—Ž•‘”›ǡƒš‹•…‘–”‹„—–‹‘ǡƒš‹•ˆ‘”’—„Ž‹…„‡‡ϐ‹–ǡ‘†‹”‡…–„‡‡ϐ‹–ǡ
ƒš‹•’ƒ‹†‘—–‘ˆ‹…‘‡‘ˆ–Š‡–ƒš’ƒ›‡”ǡ
‘˜‡”‡–Šƒ•–Š‡’‘™‡”–‘Ž‡˜›–ƒšǡƒš‹•‘––Š‡…‘•–‘ˆ–Š‡
„‡‡ϐ‹–ǡƒš‹•ˆ‘”–Š‡‡…‘‘‹…‰”‘™–Šƒ†’—„Ž‹…™‡Žˆƒ”‡Ǥ
Ȉ Canon of Taxes: ƒ‘‘ˆ‡“—‹–›ǡƒ‘‘ˆ‡”–ƒ‹–›ǡƒ‘‘ˆ‘˜‡‹‡…‡ǡƒ‘‘ˆ…‘‘›Ǥ
Ȉ Objectives of Taxation: ‡˜‡—‡ǡ ‘…‹ƒŽ ‘„Œ‡…–‹˜‡•ǡ …‘‘‹… •‹‰‹ϐ‹…ƒ…‡ ‘ˆ –ƒš‡•ǡ …‘‘‹… ‰”‘™–Šǡ
ˆ‘”…‹‰
‘˜‡”‡–‘Ž‹…›ǡˆ‘”…‹‰
‘˜‡”‡–‘Ž‹…›ǡ‹”‡…–‹‰Ž‹‹–‡†•…ƒ”…‡”‡•‘—”…‡•‹–‘‡ˆˆ‡…–‹˜‡
ƒ†‡••‡–‹ƒŽ…Šƒ‡Ž•ǡ…‘‘‹…–ƒ„‹Ž‹–›Ǥ
Ȉ ‡”‹–•ƒ†‡‡”‹–•‘ˆ‹”‡…–ƒš‡•
Ȉ ‡”‹–•ƒ†‡‡”‹–•‘ˆ†‹”‡…–ƒš‡•
Ȉ ƒ…‰”‘—†ƒ†ƒšƒ–‹‘›•–‡‹†‹ƒ
Ȉ ƒš–”—…–—”‡‹†‹ƒ
Ȉ †‹‹•–”ƒ–‹‘ǡ‹–ƒŽ–ƒ–‹•–‹…•Ƭƒ›‘—–

TEST YOURSELF

ȋŠ‡•‡ƒ”‡‡ƒ–ˆ‘””‡Ǧ…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘ǤȌ
ͳǤ  —ŽŽ ‘”ǣ
ƒȌ ‡–”ƒŽ‘ƒ”†‘ˆ‹‰‹–ƒŽƒš‡•
„Ȍ ‘‘‘ƒ”†‘ˆ‹”‡…–ƒš‡•
…Ȍ ‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•
†Ȍ ‘‘‘ƒ”†‘ˆ‹‰‹–ƒŽƒš‡•
ʹǤ ‡”‹–•‘ˆ‹”‡…–ƒš‡•ǣ
ƒȌ “—‹–›
„Ȍ Žƒ•–‹…‹–›ƒ†”‘†—…–‹˜‹–›
…Ȍ ‡”–ƒ‹–›
†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
͵Ǥ …‘’”‹•‡•‘ˆŠ‘™ƒ›‡„‡”•ǫ
ƒȌ ‡
„Ȍ ™‘
…Ȍ ‘—”
†Ȍ ‹š
ͶǤ Š‡‹•ƒ•–ƒ–—–‘”›ƒ—–Š‘”‹–›ˆ—…–‹‘‹‰—†‡”–Š‡̴̴̴̴̴̴̴̴̴̴̴̴
ƒȌ ‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–ǡͳͻ͸ͳ
„Ȍ ‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–ǡͳͻ͸͵
…Ȍ ‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–ǡͳͻ͸ͷ
†Ȍ ‡–”ƒŽ‘ƒ”†‘ˆ‡˜‡—‡…–ǡͳͻ͸ʹ
ͷǤ …‘‡ƒš™ƒ•Ž‡˜‹‡†‹†‹ƒˆ‘”–Š‡ϐ‹”•––‹‡‹–Š‡‡ƒ”̴̴̴̴̴̴̴̴̴̴̴
ƒȌ ͳͺͷ͹
„Ȍ ͳͻͷͻ
…Ȍ ͳͺ͸Ͳ
†Ȍ ͳͺ͸ͳ
•™‡”ǣͳȋ…Ȍǡʹȋ†Ȍǡ͵ȋ†ȌǡͶȋ„Ȍǡͷȋ…Ȍ
Lesson 1 Ȉ Direct Taxes – At a Glance 23

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

Author : ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
Publisher : ƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 Publisher : Ž‘–‡”•Ž—™‡”

OTHER REFERENCES

Ȉ …‘‡ƒš…–ǡͳͻ͸ͳǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š
Ȉ …‘‡ƒš—Ž‡•ǡͳͻ͸ʹǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•ǦͷͿͼ͸Ǥƒ•’š
Ȉ ‹”…—Žƒ”•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
24 Lesson 1 Ȉ EP-TL
Lesson 2 Basic Concept of Income Tax
Key Concepts One Learning Objectives
Should Know
To understand:
Ȉ ‡”•‘ Ȉ ˜‡”˜‹‡™‘ˆ ‹ƒ…‡‹ŽŽ
Ȉ ••‡••‡‡ Ȉ ‘‡„ƒ•‹……‘…‡’–•Ž‹‡ƒ••‡••‡–›‡ƒ”ǡ’”‡˜‹‘—•›‡ƒ”ǡ…‘‡ǡ
’‡”•‘ǡƒ••‡••‡‡
Ȉ ••‡••‡–‡ƒ”
Ȉ ‹•–‹‰—‹•Š„‡–™‡‡ƒ’‹–ƒŽƒ†‡˜‡—‡‡…‡‹’–•‡–…Ǥ
Ȉ ”‡˜‹‘—•‡ƒ” Ȉ ƒ•‹…•–‡’•‹–Š‡…ƒŽ…—Žƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›
Ȉ ˜‡”ƒ‰‡ƒ–‡‘ˆƒš Ȉ ‘…‡’–‘ˆ‡•‹†‡–‹ƒŽ–ƒ–—•
Ȉ ƒš‹—ƒ”‰‹ƒŽ Ȉ ’‘”–ƒ…‡‘ˆ‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”–ƒš’—”’‘•‡•
ƒ–‡ Ȉ …‘’‡‘ˆ–‘–ƒŽ‹…‘‡
Ȉ …‘‡ Ȉ ƒ–‡•‘ˆ–ƒš

Ȉ ‘–ƒŽ…‘‡
Ȉ ƒ’‹–ƒŽ‡…‡‹’– Lesson Outline
Ȉ ‡˜‡—‡‡…‡‹’– Ȉ –”‘†—…–‹‘ Ȉ ‡•–ˆ‘””‡•‹†‡…‡‘ˆ
Ȉ ˜‡”˜‹‡™‘ˆ ‹ƒ…‡‹ŽŽ Ȉ ‡•–ˆ‘””‡•‹†‡…‡‘ˆ
‘’ƒ‹‡•
Ȉ ‡ƒ†•‘ˆ…‘‡ȏ‡…–‹‘ͳͶȐ
Ȉ ‡•–ˆ‘””‡•‹†‡…‡ˆ‘” ‹”ǡ
Ȉ ’‘”–ƒ–‘…‡’–•
Ȁ
Ȉ ‡”•‘ȏ‡…–‹‘ʹȋ͵ͳȌȐ
Ȉ ‡ƒ‹‰ƒ†…‘’‡‘ˆ–‘–ƒŽ
Ȉ ••‡••‡‡ȏ‡…–‹‘ʹȋ͹ȌȐ …‘‡ȏ‡…–‹‘ͷȐ
Ȉ ••‡••‡–›‡ƒ”ȏ‡…–‹‘ Ȉ …‘‡”‡…‡‹˜‡†‘”†‡‡‡†
ʹȋͻȌȐ –‘„‡”‡…‡‹˜‡†‹†‹ƒ
Ȉ ”‡˜‹‘—•›‡ƒ”ȏ‡…–‹‘͵Ȑ Ȉ …‘‡ƒ……”—‡†‘”ƒ”‹•‡‹
Ȉ †‹ƒȏ‡…–‹‘ʹȋʹͷȌȐ †‹ƒ

Ȉ ƒš‹—ƒ”‰‹ƒŽƒ–‡ƒ† Ȉ …‘‡†‡‡‡†–‘ƒ……”—‡‘”
˜‡”ƒ‰‡ƒ–‡‘ˆƒš ƒ”‹•‡‹†‹ƒ

Ȉ …‘‡ȏ‡…–‹‘ʹȋʹͶȌȐ Ȉ ƒš‹…‹†‡…‡˜‹•ǦƒǦ˜‹•
”‡•‹†‡–‹ƒŽ•–ƒ–—•
Ȉ ‘–ƒŽ…‘‡ȏ‡…–‹‘
ʹȋͶͷȌȐ Ȉ ‘’—–ƒ–‹‘‘ˆƒšƒ„Ž‡
…‘‡ƒ†ƒš‹ƒ„‹Ž‹–›‘ˆƒ
Ȉ ƒ’‹–ƒŽƒ†‡˜‡—‡‡…‡‹’–• ••‡••‡‡
Ȉ Šƒ”‰‡‘ˆ…‘‡ƒš Ȉ ƒšƒ–‡•
ȏ‡…–‹‘ͶȐ
Ȉ Ǧ
Ȉ ‡•‹†‡–‹ƒŽ–ƒ–—•ȏ‡…–‹‘͸Ȑ
Ȉ 
Ȉ ‡•–ˆ‘””‡•‹†‡…‡‘ˆ
†‹˜‹†—ƒŽ• Ȉ   

Ȉ  
26 Lesson 2 Ȉ EP-TL

Regulatory Framework

Sections Income Tax Act, 1961

‡…–‹‘ͳͶ ‡ƒ†•‘ˆ…‘‡

‡…–‹‘ʹȋ͵ͳȌ ‡”•‘

‡…–‹‘ʹȋ͹Ȍ ••‡••‡‡

‡…–‹‘ʹȋͻȌ ••‡••‡–‡ƒ”

‡…–‹‘͵ ”‡˜‹‘—•‡ƒ”

‡…–‹‘ʹȋʹͷȌ †‹ƒ

‡…–‹‘ʹȋͳͲȌ ˜‡”ƒ‰‡ƒ–‡‘ˆ‹…‘‡Ǧ–ƒš

‡…–‹‘ʹȋʹͻȌ ƒš‹—ƒ”‰‹ƒŽƒ–‡

‡…–‹‘ʹȋʹͶȌ …‘‡

‡…–‹‘ʹȋͶͷȌ ‘–ƒŽ…‘‡

‡…–‹‘Ͷ Šƒ”‰‡‘ˆ…‘‡ƒš

‡…–‹‘͸ ‡•‹†‡–‹ƒŽ–ƒ–—•

‡…–‹‘ͷ ‡ƒ‹‰ƒ†…‘’‡‘ˆ‘–ƒŽ…‘‡

‡…–‹‘ͻ …‘‡ƒ”‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒ

‡…–‹‘ͳͳͷ ’‡…‹ƒŽƒš‡‰‹‡ˆ‘”†‹˜‹†—ƒŽƒ† •

‡…–‹‘ͳͳͷ ’‡…‹ƒŽƒš‡‰‹‡ƒ’’Ž‹…ƒ„Ž‡–‘ƒ‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•

‡…–‹‘ͺ͹ ‡„ƒ–‡

The Income Tax Department is governed by Central Board of Direct Taxes (CBDT) and it is the part of the
Department of Revenue under the Ministry of Finance, Government of India
 Lesson 2 Ȉ Basic Concept of Income Tax 27

INTRODUCTION
ƒš‹•–Š‡ϐ‹ƒ…‹ƒŽ…Šƒ”‰‡‹’‘•‡†„›–Š‡
‘˜‡”‡–‘‹…‘‡ǡ…‘‘†‹–›‘”ƒ…–‹˜‹–›Ǥ
‘˜‡”‡–‹’‘•‡• –™‘
–›’‡•‘ˆ–ƒš‡•ƒ‡Ž›‹”‡…––ƒš‡•ƒ††‹”‡…––ƒš‡•Ǥ‹”‡…––ƒš‹•‘‡™Š‡”‡„—”†‡‘ˆ–ƒš‹•†‹”‡…–Ž›‘ –Š‡’ƒ›‡”
‡Ǥ‰Ǥ‹…‘‡–ƒšǡ™Š‡”‡ƒ•†‹”‡…––ƒš‹•’ƒ‹†„›–Š‡’‡”•‘‘–Š‡”–Šƒ–Š‡‘‡™Š‘—–‹Ž‹œ‡•–Š‡’”‘†—…– ‘”•‡”˜‹…‡‡Ǥ‰Ǥ
—•–‘†—–›ǡ
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
ȌǤ
”–‹…Ž‡ʹ͸ͷ‘ˆ–Š‡‘•–‹–—–‹‘’”‘˜‹†‡•–Šƒ–‘–ƒš•ŠƒŽŽ„‡Ž‡˜‹‡†‘”…‘ŽŽ‡…–‡†‡š…‡’–„›ƒ—–Š‘”‹–›‘ˆŽƒ™ǤŠ—•ǡ –Š‡
–ƒš’”‘’‘•‡†–‘„‡Ž‡˜‹‡†‘”…‘ŽŽ‡…–‡†—•–„‡™‹–Š‹–Š‡Ž‡‰‹•Žƒ–‹˜‡…‘’‡–‡…‡‘ˆ–Š‡Ž‡‰‹•Žƒ–—”‡‹’‘•‹‰–Š‡–ƒšǤ —”–Š‡”ǡ
–Š‡Žƒ™‹’‘•‹‰–Š‡–ƒšǡŽ‹‡‘–Š‡”Žƒ™•ǡ—•–‘–˜‹‘Žƒ–‡ƒ›ˆ—†ƒ‡–ƒŽ”‹‰Š–Ǥ
…‘‡ –ƒš „‡‹‰ †‹”‡…– –ƒš Šƒ’’‡• –‘ „‡ –Š‡ ƒŒ‘” •‘—”…‡ ‘ˆ ”‡˜‡—‡ ˆ‘” –Š‡ ‡–”ƒŽ
‘˜‡”‡–Ǥ Š‡
”‡•’‘•‹„‹Ž‹–› ˆ‘” …‘ŽŽ‡…–‹‘ ‘ˆ ‹…‘‡Ǧ–ƒš ˜‡•–• ™‹–Š –Š‡ ‡–”ƒŽ
‘˜‡”‡–ǤŠ‹• –ƒš ‹• Ž‡˜‹ƒ„Ž‡ ƒ† …‘ŽŽ‡…–‡†
—†‡”…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘ƒ•Ǯ–Š‡…–ǯȌǤŠ‡‡–‹”‡ƒ‘—–‘ˆ‹…‘‡–ƒš…‘ŽŽ‡…–‡†„› –Š‡
‡–”ƒŽ
‘˜‡”‡–‹•…Žƒ••‹ϐ‹‡†—†‡”–Š‡Š‡ƒ†ǣ
ͳǤ ‘”’‘”ƒ–‹‘ƒšȋƒš‘–Š‡‹…‘‡‘ˆ–Š‡…‘’ƒ‹‡•ȌǢƒ†
ʹǤ …‘‡ƒšȋƒš‘‹…‘‡‘ˆ–Š‡‘Ǧ…‘”’‘”ƒ–‡ƒ••‡••‡‡•ȌǤ
Š‡ …‘‡ –ƒš …– …‘–ƒ‹• –Š‡ ’”‘˜‹•‹‘• ˆ‘” †‡–‡”‹ƒ–‹‘ ‘ˆ –ƒšƒ„Ž‡ ‹…‘‡ǡ †‡–‡”‹ƒ–‹‘ ‘ˆ –ƒš Ž‹ƒ„‹Ž‹–›ǡ
’”‘…‡†—”‡ˆ‘”ƒ••‡••‡–ǡƒ’’‡ƒŽǡ’‡ƒŽ–‹‡•ƒ†’”‘•‡…—–‹‘•Ǥ–ƒŽ•‘Žƒ›•†‘™–Š‡’‘™‡”•ƒ††—–‹‡•‘ˆ˜ƒ”‹‘—•
‹…‘‡–ƒšƒ—–Š‘”‹–‹‡•ǤŠ‡‹…‘‡–ƒšŽƒ™‹†‹ƒ…‘•‹•–•‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘’‘‡–•Ǥ
Ȉ Income Tax Act, 1961 : Š‹•…–…ƒ‡‹–‘ˆ‘”…‡‘ͳ•–’”‹Žǡͳͻ͸ʹǤ–…‘–ƒ‹••‡…–‹‘•ͳ–‘ʹͻͺǡ™Š‡”‡‹ ‡ƒ…Š
•‡…–‹‘ƒ›Šƒ˜‡•—„Ǧ•‡…–‹‘•ǡ…Žƒ—•‡•‘”•—„Ǧ…Žƒ—•‡•ƒ†ƒ›ƒŽ•‘Šƒ˜‡”‘˜‹•‘•ƒ†š’Žƒƒ–‹‘•Ǥ
Ȉ Annual Finance Act : ˜‡”››‡ƒ”ƒ—†‰‡–‹•’”‡•‡–‡†„‡ˆ‘”‡–Š‡’ƒ”Ž‹ƒ‡–„›–Š‡ ‹ƒ…‡‹‹•–‡”Ǥ ‡‘ˆ
–Š‡‹’‘”–ƒ–…‘’‘‡–•‘ˆ–Š‡—†‰‡–‹•–Š‡ ‹ƒ…‡‹ŽŽǤŠ‹•‹ŽŽ…‘–ƒ‹•˜ƒ”‹‘—•ƒ‡†‡–•‹–Š‡…‘‡Ǧ
ƒš…–ƒ†‘–Š‡”–ƒšŽƒ™•–‘’”‡•…”‹„‡–Š‡ƒ††‹–‹‘•ƒ††‡Ž‡–‹‘• –Š‡”‡‹ǤŠ‡–Š‡ ‹ƒ…‡ ‹ŽŽ ‹•
ƒ’’”‘˜‡†„›„‘–Š–Š‡Š‘—•‡•‘ˆ’ƒ”Ž‹ƒ‡–ƒ†”‡…‡‹˜‡•–Š‡ƒ••‡–‘ˆ”‡•‹†‡–ǡ‹– „‡…‘‡•–Š‡ ‹ƒ…‡
…–Ǥ
Ȉ Income Tax Rules,1962 : ‘” ‹’Ž‡‡–ƒ–‹‘ ‘ˆ –Š‡ …– ƒ† ˆ‘” ƒ†‹‹•–”ƒ–‹‘ ‘ˆ –Š‡ †‹”‡…– –ƒš‡•
‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•ȋȌ‹•‡’‘™‡”‡†–‘ˆ”ƒ‡–Š‡•‡”—Ž‡•ˆ”‘–‹‡–‘–‹‡ǤŠ‡•‡”—Ž‡• ƒ”‡
…‘ŽŽ‡…–‹˜‡Ž›…ƒŽŽ‡†ƒ•–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡͳͻ͸ʹǤŠ‡•‡”—Ž‡•ƒ”‡ƒ†‡ƒ’’Ž‹…ƒ„Ž‡„›‘–‹ϐ‹…ƒ–‹‘ ‹–Š‡
ˆϐ‹…‹ƒŽ
ƒœ‡––‡‘ˆ†‹ƒǤ
Ȉ ‘–‹ϐ‹…ƒ–‹‘• ǣ ‘–‹ϐ‹…ƒ–‹‘• ƒ”‡ ‹••—‡† ‡‹–Š‡” „› ‡–”ƒŽ
‘˜‡”‡– ‘” „›  –‘ –ƒ‡ …ƒ”‡ –Š‡
’”‘…‡†—”ƒŽƒ•’‡…–•‘ˆ–Š‡…–ˆ”‘–‹‡–‘–‹‡ǤŠ‡•‡‘–‹ϐ‹…ƒ–‹‘•ƒ”‡„‹†‹‰‘‡˜‡”›‘‡ǡ‹Ǥ‡Ǥǡ‘
…‘‡ƒš—–Š‘”‹–‹‡•ƒ•™‡ŽŽƒ•‘–Š‡ƒ••‡••‡‡•Ǥ
Ȉ C‹”…—Žƒ”•ȀŽƒ”‹ϐ‹…ƒ–‹‘• ǣ ‹”…—Žƒ”• ƒ† …Žƒ”‹ϐ‹…ƒ–‹‘• ƒ”‡ ‹••—‡† „› –Š‡  –‘ …Žƒ”‹ˆ› –Š‡ †‘—„–•
”‡‰ƒ”†‹‰–Š‡•…‘’‡ƒ†‡ƒ‹‰‘ˆ…‡”–ƒ‹’”‘˜‹•‹‘•‘ˆ–Š‡Žƒ™ƒ†’”‹ƒ”‹Ž›–‘’”‘˜‹†‡‰—‹†ƒ…‡ –‘–Š‡
…‘‡ƒš‘ˆϐ‹…‡”•ǤŠ‡•‡…‹”…—Žƒ”•ƒ”‡„‹†‹‰‘–Š‡…‘‡ƒš—–Š‘”‹–‹‡•„—–‘–‘–Š‡ ƒ••‡••‡‡
Š‘™‡˜‡”ƒƒ••‡••‡‡…ƒ–ƒ‡„‡‡ϐ‹–‘ˆ–Š‡•‡…‹”…—Žƒ”•Ǥ
Ȉ Judicial Decisions (Case Laws): ‡…‹•‹‘•’”‘‘—…‡†„›—’”‡‡‘—”–„‡…‘‡ —†‹…‹ƒŽ”‡…‡†‡–
ƒ†ƒ”‡„‹†‹‰‘ƒŽŽ–Š‡…‘—”–•ǡ’’‡ŽŽƒ–‡”‹„—ƒŽǡ…‘‡ƒš—–Š‘”‹–‹‡•ƒ†‘ƒ••‡••‡•Ǥ —”–Š‡”ǡ
‹‰Š ‘—”– †‡…‹•‹‘• ƒ”‡ „‹†‹‰ ‘ ƒ••‡••‡• ƒ† …‘‡ ƒš —–Š‘”‹–‹‡• ™Š‹…Š …‘‡ —†‡” ‹–•
Œ—”‹•†‹…–‹‘—Ž‡••‹–‹•‘˜‡””—Ž‡†„›ƒŠ‹‰Š‡”ƒ—–Š‘”‹–›ǤŠ‡†‡…‹•‹‘‘ˆƒ‹‰Š‘—”–…ƒ‘–„‹†‘–Š‡”
‹‰Š‘—”–Ǥ
AN OVERVIEW OF FINANCE BILL
‹ƒ…‡ ‹ŽŽ ƒ• ’ƒ”– ‘ˆ –Š‡ ‹‘ —†‰‡– ‹• ’”‡•‡–‡† —•—ƒŽŽ› ‹ –Š‡ ‘–Š ‘ˆ ‡„”—ƒ”› ‡˜‡”› ›‡ƒ” ƒ† –Š‹• „‹ŽŽ
…‘–ƒ‹• ƒ‡†‡–• ‹ †‹”‡…– ƒ• ™‡ŽŽ ƒ• ‹†‹”‡…– –ƒš‡•Ǥ – ‹• ’”‡•‡–‡† ‹ –Š‡ ƒ”Ž‹ƒ‡– „› –Š‡ ‹‘ ‹ƒ…‡
‹‹•–‡”Ǥ
Š‡ϐ‹ƒ…‡„‹ŽŽ‹•’ƒ••‡†„›„‘–Š–Š‡Š‘—•‡•‘ˆƒ”Ž‹ƒ‡–ƒˆ–‡”‹–‹•„‡‹‰–ƒ„Ž‡†ƒ†‡…‡••ƒ”›”‡…‘‡†ƒ–‹‘ Ȁ
ƒ‡†‡–•Šƒ˜‡„‡‡ƒ†‡‹‹–Ǥ…‡–Š‡„‹ŽŽŠƒ•„‡‡’ƒ••‡†„›–Š‡ƒ”Ž‹ƒ‡–ǡ‹–‰‘‡•–‘–Š‡”‡•‹†‡–ˆ‘”Š‹•ƒ••‡–Ǥ
ˆ–‡””‡•‹†‡–ǯ•ƒ••‡–ǡ–Š‡ϐ‹ƒ…‡„‹ŽŽ„‡…‘‡•–Š‡ ‹ƒ…‡…–Ǥ
 28 Lesson 2 Ȉ EP-TL

Finance Bill Presented by Finance Minister

Recommendation / Suggestion considered and changes made to Finance Bill

Parliament Approval

President's approval

Finance Act

Š‡ ‹ƒ…‡‹ŽŽ‹•’”‡•‡–‡†ƒ––Š‡–‹‡‘ˆ’”‡•‡–ƒ–‹‘‘ˆ–Š‡—ƒŽ ‹ƒ…‹ƒŽ–ƒ–‡‡–„‡ˆ‘”‡ƒ”Ž‹ƒ‡–ǡ‹

ˆ—Žϐ‹ŽŽ‡–‘ˆ–Š‡”‡“—‹”‡‡–‘ˆ”–‹…Ž‡ͳͳͲȋͳȌȋƒȌ‘ˆ–Š‡‘•–‹–—–‹‘ǡ†‡–ƒ‹Ž‹‰–Š‡‹’‘•‹–‹‘ǡƒ„‘Ž‹–‹‘ǡ”‡‹••‹‘ǡ
ƒŽ–‡”ƒ–‹‘‘””‡‰—Žƒ–‹‘‘ˆ–ƒš‡•’”‘’‘•‡†‹–Š‡—†‰‡–Ǥ–‹•–Š”‘—‰Š–Š‡ ‹ƒ…‡…––Šƒ–ƒ‡†‡–•ƒ”‡ƒ†‡ –‘–Š‡
˜ƒ”‹‘—•…–•Ž‹‡…‘‡ƒš…–ͳͻ͸ͳǡ—•–‘•…–ǡͳͻ͸ʹ‡–…Ǥ•Š‘”–ǡ ‹ƒ…‡‹ŽŽ…ƒ„‡…‘•‹†‡”‡†ƒ•ƒ—„”‡ŽŽƒ
…–Ǥ
Š‡ –Š‡ ’”‘’‘•ƒŽ• ƒ”‡ ‹–”‘†—…‡† –‘ –Š‡ ƒ”Ž‹ƒ‡– ‹– ‹• …ƒŽŽ‡† ƒ• ƒ ‹ƒ…‡ ‹ŽŽǤ …‡ ‹– ‹• ’ƒ••‡† „› –Š‡
ƒ”Ž‹ƒ‡–ƒ†ƒ••‡–‡†–‘„›–Š‡”‡•‹†‡–ǡ ‹ƒ…‡‹ŽŽ„‡…‘‡•–Š‡ ‹ƒ…‡…–ˆ‘”–Šƒ–›‡ƒ”Ǥ ‹ƒ…‡‹ŽŽ• ˆ‘”
˜ƒ”‹‘—•›‡ƒ”•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡ƒ––Š‡™‡„•‹–‡http ://indiabudget.nic.in/
Š‡†‹ˆˆ‡”‡–…Žƒ—•‡•‹–Š‡ ‹ƒ…‡…–ƒ›‰‡–‘–‹ϐ‹‡†‡˜‡–—ƒŽŽ›ǡ„—–ƒ–†‹ˆˆ‡”‡––‹‡•„ƒ•‡†‘–Š‡”‡ƒ†‹‡•• ‘ˆ–Š‡
•–ƒ‡Š‘Ž†‡”• ƒ† ‹’Ž‡‡–‹‰ ƒ‰‡…‹‡•Ǥ Š‡ ‡ˆˆ‡…–‹˜‡ †ƒ–‡ ‘ˆ ƒ’’Ž‹…ƒ„‹Ž‹–› ‘ˆ ’”‘˜‹•‹‘• ‘ˆ –Š‡ ‹ƒ…‡ …– ‹•
—•—ƒŽŽ›‡–‹‘‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘‹–Š‡‘ˆϐ‹…‹ƒŽ‰ƒœ‡––‡‘”‹–Š‡…–‹–•‡ŽˆǤ
‡‡”ƒŽŽ›ǡ–Š‡ƒ‡†‡–• „›–Š‡
‹ƒ…‡…–ƒ”‡ƒ†‡ƒ’’Ž‹…ƒ„Ž‡ˆ”‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡‡š–ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ‹‡™‹•‡ǡƒ‡†‡–•„› ‹ƒ…‡…–ǡ
ʹͲʹͳ ƒ”‡ ‡ˆˆ‡…–‹˜‡ ˆ”‘ ͳ•–’”‹Žǡ ʹͲʹͳǤ ‡‰ƒ”†‹‰ ‹†‹”‡…– –ƒš‡•ǡ –Š‡ ƒ† ˜ƒŽ‘”‡ –ƒš ”ƒ–‡• ȋ–ƒš”ƒ–‡•„ƒ•‡†‘
˜ƒŽ—‡Ȍƒ”‡‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡‹†‹‰Š–‘ˆ–Š‡†ƒ–‡‘ˆ’”‡•‡–ƒ–‹‘‘ˆ–Š‡‹‘—†‰‡–Ǥ

Effective date of amendments in Finance Bill

Direct Tax Indirect Tax

Usually the Date of

Usually midnight of
‘–‹ϐ‹…ƒ–‹‘‹
the date of
ˆϐ‹…‹ƒŽ‰ƒœ‡––‡‘”
Presentation of Bill
in the Finance Act.
 Lesson 2 Ȉ Basic Concept of Income Tax 29

HEADS OF INCOME [SECTION 14]

†‡”…‘‡ƒš…–ƒŽŽ‹…‘‡•ƒ”‡…ƒ–‡‰‘”‹œ‡†—†‡”ͷ‡ƒ†•‘ˆ…‘‡ǤŠ‡”‡‹•ƒ…Šƒ”‰‹‰•‡…–‹‘—†‡”‡ƒ…Š
Š‡ƒ†‘ˆ‹…‘‡™Š‹…Š†‡ϐ‹‡•–Š‡•…‘’‡‘ˆ‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Šƒ–Š‡ƒ†ǤŠ‡•‡Š‡ƒ†•‘ˆ‹…‘‡…‘˜‡”ƒŽŽ
’‘••‹„Ž‡ ƒ˜‡—‡• ˆ‘” ƒ ’‡”•‘ –‘ ‡ƒ” ƒ› ‹…‘‡Ǥ ……‘”†‹‰Ž› ‹…‘‡ ‡ƒ”‡† ‹• …Žƒ••‹ϐ‹‡† —†‡” –Š‡ ˆ‘ŽŽ‘™‹‰
Š‡ƒ†•ǣ
ƒǤ …‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”›ǣƒŽƒ”›…‘‡‡ƒ”‡†„›‡’Ž‘›‡‡ˆ”‘Š‹•‡’Ž‘›‡”
„Ǥ …‘‡—†‡”–Š‡Š‡ƒ†‘—•‡”‘’‡”–›ǣ‡–ƒŽ‹…‘‡‡ƒ”‡†„›ƒŽƒ†Ž‘”†ˆ”‘Š‘—•‡’”‘’‡”–›
…Ǥ …‘‡—†‡”–Š‡Š‡ƒ†”‘ϐ‹–•ƒ†
ƒ‹•ˆ”‘—•‹‡••ƒ†”‘ˆ‡••‹‘ȋ
Ȍǣ—•‹‡••…‘‡
†Ǥ …‘‡—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•ǣ…‘‡„›•ƒŽ‡Ȁ–”ƒ•ˆ‡”‘ˆƒ’‹–ƒŽ••‡–
‡Ǥ …‘‡—†‡”–Š‡Š‡ƒ†–Š‡”‘—”…‡•ǣ‡•‹†—ƒŽŠ‡ƒ†‘ˆ‹…‘‡Ǥ

˜‡”›’‡”•‘™Š‘•‡‘–ƒŽ…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘
–ƒšǡ‹•ƒƒ••‡••‡‡ƒ†•—…Š–‘–ƒŽ‹…‘‡•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘…‘‡ƒšƒ––Š‡”ƒ–‡•’”‡•…”‹„‡†‹–Š‡…–ˆ‘”–Šƒ–
”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”Ǥ‘™‡˜‡”–Š‹•‘–ƒŽ‹…‘‡•ŠƒŽŽ„‡†‡–‡”‹‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡
ƒ••‡••‡‡‹†‹ƒǤ
‘Ž‡˜›‹…‘‡–ƒšǡ‘‡—•–Šƒ˜‡ƒ—†‡”•–ƒ†‹‰‘ˆ–Š‡˜ƒ”‹‘—•…‘…‡’–•”‡Žƒ–‡†–‘–Š‡…Šƒ”‰‡‘ˆ–ƒšŽ‹‡’”‡˜‹‘—•
›‡ƒ”ǡƒ••‡••‡–›‡ƒ”ǡ…‘‡ǡ–‘–ƒŽ‹…‘‡ǡ’‡”•‘ǡƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‡–…Ǥ
IMPORTANT CONCEPTS
PERSON [SECTION 2(31)]

…‘‡Ǧ–ƒš‹•…Šƒ”‰‡†‹”‡•’‡…–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‘ˆ‡˜‡”›’‡”•‘Ǥ‡…‡ǡ‹–‹•‹’‘”–ƒ–
–‘‘™–Š‡†‡ϐ‹‹–‹‘‘ˆ–Š‡™‘”†’‡”•‘Ǥ•’‡”•‡…–‹‘ʹȋ͵ͳȌǡ‡”•‘‹…Ž—†‡•ǣ
 30 Lesson 2 Ȉ EP-TL

¾ Individual ǣ  ‹†‹˜‹†—ƒŽ ‹• ƒ ƒ–—”ƒŽ Š—ƒ „‡‹‰Ǣ ‹Ǥ‡ǤǢ ƒŽ‡ǡ ˆ‡ƒŽ‡ǡ ‹‘” ‘” ƒ ’‡”•‘ ‘ˆ •‘—† ‘”
—•‘—†‹†Ǥ
¾ HUF ǣ †‡” …‘‡ ƒš…–ǡ ͳͻ͸ͳǡ ƒ ‹†— †‹˜‹†‡† ƒ‹Ž› ȋ Ȍ ‹• –”‡ƒ–‡† ƒ• •‡’ƒ”ƒ–‡ ‡–‹–› ˆ‘” –Š‡
’—”’‘•‡•‘ˆƒ••‡••‡–Ǥ–…‘•‹•–•‘ˆƒŽŽ’‡”•‘•Ž‹‡ƒŽŽ›†‡•…‡†‡†ˆ”‘ƒ…‘‘ƒ…‡•–‘”ƒ† ‹…Ž—†‡•
–Š‡‹”™‹˜‡•ƒ†—ƒ””‹‡††ƒ—‰Š–‡”•ƒ†ƒŽ•‘ƒ•–”ƒ‰‡”™Š‘Šƒ•„‡‡ƒ†‘’–‡†„›–Š‡ˆƒ‹Ž›Ǥ ‡„‡”•‘ˆ–Š‡
 ƒ”‡…ƒŽŽ‡†ƒ•…‘Ǧ’ƒ”…‡‡”•™Š‹…Š‹…Ž—†‡•–Š‡Š‡ƒ†‘ˆ–Š‡ ™Š‘‹•…ƒŽŽ‡†ƒ•ƒ”–ƒǤ‹†—‘’ƒ”…‡ƒ”›
‹…Ž—†‡•–Š‘•‡’‡”•‘•™Š‘ ƒ…“—‹”‡ ƒ‹–‡”‡•–‹Œ‘‹–ˆƒ‹Ž›’”‘’‡”–›„› „‹”–ŠǤŠ‡”‡Žƒ–‹‘‘ˆƒ †‘‡•
‘–ƒ”‹•‡ˆ”‘ƒ…‘–”ƒ…–„—–ƒ”‹•‡•ˆ”‘•–ƒ–—•ǤŽ›–Š‡…‘’ƒ”…‡‡”• Šƒ˜‡ƒ”‹‰Š––‘’ƒ”–‹–‹‘Ǥ‘™‡˜‡”ǡ‘–Š‡”
ˆ‡ƒŽ‡‡„‡”•‘ˆ–Š‡ˆƒ‹Ž›ǡˆ‘”‡šƒ’Ž‡ǡ™‹ˆ‡‘”†ƒ—‰Š–‡”Ǧ ‹ǦŽƒ™‘ˆƒ…‘’ƒ”…‡‡”ƒ”‡‘–‡Ž‹‰‹„Ž‡ˆ‘”•—…Š
…‘’ƒ”…‡ƒ”›”‹‰Š–•Ǥ ƒ‹—†‹˜‹†‡†ˆƒ‹Ž‹‡•ƒ†‹Š —†‹˜‹†‡†ˆƒ‹Ž‹‡•™‘—Ž†ƒŽ•‘„‡ƒ••‡••‡†ƒ•ƒ Ǥ

Company ǣ–‹…Ž—†‡‘‡•–‹……‘’ƒ›ǡ ‘”‡‹‰…‘’ƒ›ǡ…‘’ƒ›‹™Š‹…Š’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†Ǥ

‡…–‹‘ʹȋͳ͹Ȍ†‡ϐ‹‡•–Š‡–‡”…‘’ƒ›–‘‡ƒǣ
‹Ǥ ƒ›†‹ƒ…‘’ƒ›ǡ‘”
‹‹Ǥ ƒ›„‘†›…‘”’‘”ƒ–‡‹…‘”’‘”ƒ–‡†„›‘”—†‡”–Š‡Žƒ™•‘ˆƒ…‘—–”›‘—–•‹†‡†‹ƒǡ‹Ǥ‡Ǥǡƒˆ‘”‡‹‰…‘’ƒ›ǡ‘”
‹‹‹Ǥ ƒ› ‹•–‹–—–‹‘ǡ ƒ••‘…‹ƒ–‹‘ ‘” „‘†› ™Š‹…Š ‹• ‘” ™ƒ• ƒ••‡••ƒ„Ž‡ ‘” ™ƒ• ƒ••‡••‡† ƒ• ƒ …‘’ƒ› ˆ‘” ƒ›
ƒ••‡••‡–›‡ƒ”—†‡”–Š‡†‹ƒ…‘‡ƒš…–ǡͳͻʹʹ‘”™Š‹…Š‹•‘”™ƒ•ƒ••‡••ƒ„Ž‡‘” ™ƒ•ƒ••‡••‡†—†‡”
–Š‹•…–ƒ•ƒ…‘’ƒ›ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”„‡ˆ‘”‡ –Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻ͹Ͳǡ‘”
‹˜Ǥ ƒ› ‹•–‹–—–‹‘ǡ ƒ••‘…‹ƒ–‹‘ ‘” „‘†›ǡ ™Š‡–Š‡” ‹…‘”’‘”ƒ–‡† ‘” ‘– ƒ† ™Š‡–Š‡” †‹ƒ ‘” ‘Ǧ †‹ƒǡ
™Š‹…Š‹•†‡…Žƒ”‡†„›‰‡‡”ƒŽ‘”•’‡…‹ƒŽ‘”†‡”‘ˆ–Š‡–‘„‡ƒ…‘’ƒ›‘Ž›ˆ‘”•—…Š ƒ••‡••‡–›‡ƒ”‘”
ƒ••‡••‡–›‡ƒ”•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†„›–Š‡‘”†‡”‘ˆǤ
 Lesson 2 Ȉ Basic Concept of Income Tax 31

¾ Firm ǣ – ‹…Ž—†‡• ƒ ’ƒ”–‡”•Š‹’ ϐ‹” ™Š‡–Š‡” ”‡‰‹•–‡”‡† ‘” ‘– ƒ† •ŠƒŽŽ ‹…Ž—†‡ ƒ ‹‹–‡† ‹ƒ„‹Ž‹–›
ƒ”–‡”•Š‹’ƒ•†‡ϐ‹‡†‹–Š‡‹‹–‡†‹ƒ„‹Ž‹–›ƒ”–‡”•Š‹’…–ǡʹͲͲͺǤ

……‘”†‹‰–‘‡…–‹‘Ͷ‘ˆ–Š‡ƒ”–‡”•Š‹’…–ǡͳͻ͵ʹ’‡”•‘•™Š‘Šƒ˜‡‡–‡”‡†‹–‘’ƒ”–‡”•Š‹’™‹–Š
‘‡ƒ‘–Š‡”ƒ”‡…ƒŽŽ‡†‹†‹˜‹†—ƒŽŽ›ǡǮ’ƒ”–‡”•ǯƒ†…‘ŽŽ‡…–‹˜‡Ž›Ǯƒˆ‹”ǯǤ

¾ Association of Person ǣ™‘‘”‘”‡’‡”•‘•Œ‘‹‹ˆ‘”ƒ…‘‘’—”’‘•‡‘”…‘‘ƒ…–‹‘–‘’”‘†—…‡

‹…‘‡ǡ’”‘ϐ‹–•‘”‰ƒ‹•Ǥ

–ƒ›…‘•‹•–‘ˆ‹†‹˜‹†—ƒŽ•ǡ ǡ…‘’ƒ‹‡•ǡϐ‹”•ǡ‡–…Ǥƒ•‡„‡”•

Š‡ ‘„Œ‡…– —•– „‡ –‘ ’”‘†—…‡ ‹…‘‡Ǥ – ‹• ‘– ‡‘—‰Š –Šƒ– –Š‡
’‡”•‘• ”‡…‡‹˜‡–Š‡‹…‘‡Œ‘‹–Ž›Ǥ
¾ Body of Individuals †‡‘–‡–Š‡•–ƒ–—•‘ˆ’‡”•‘•™Š‘ƒ”‡ƒ••‡••ƒ„Ž‡‹Ž‹‡ƒ‡”ƒ†–‘–Š‡•ƒ‡‡š–‡–ƒ•
–Š‡„‡‡ϐ‹…‹ƒ”‹‡•‹†‹˜‹†—ƒŽŽ›Ǥ

Ž›‹†‹˜‹†—ƒŽ•…ƒ„‡ †‹˜‹†—ƒŽ•Œ‘‹–‘‰‡–Š‡”
–Š‡‡„‡”• ˆ‘”…‘‘’—”’‘•‡•

Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ƒ†„‘†›‘ˆ‹†‹˜‹†—ƒŽ•‹•–Šƒ–™Š‡”‡ƒ•ƒƒ••‘…‹ƒ–‹‘‹’Ž‹‡•ƒ
˜‘Ž—–ƒ”›‰‡––‹‰–‘‰‡–Š‡”ˆ‘”ƒ†‡ϐ‹‹–‡’—”’‘•‡ǡƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•™‘—Ž†„‡Œ—•–ƒ„‘†›™‹–Š‘—–ƒ‹–‡–‹‘–‘
‰‡–Ǧ–‘‰‡–Š‡”Ǥ ‘”‡‘˜‡”ǡ –Š‡ ‡„‡”• ‘ˆ „‘†› ‘ˆ ‹†‹˜‹†—ƒŽ• …ƒ „‡ ‹†‹˜‹†—ƒŽ• ‘Ž› ™Š‡”‡ƒ• –Š‡ ‡„‡”• ‘ˆ ƒ
ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•…ƒ„‡‹†‹˜‹†—ƒŽ‘”‘Ǧ‹†‹˜‹†—ƒŽ•ȋ‹Ǥ‡Ǥƒ”–‹ϐ‹…‹ƒŽ’‡”•‘•ȌǤ
A local authority
–‡ƒ•ƒ—‹…‹’ƒŽ…‘‹––‡‡ǡ†‹•–”‹…–„‘ƒ”†ǡ„‘†›‘ˆ’‘”–…‘‹••‹‘‡”•ǡ‘”‘–Š‡”ƒ—–Š‘”‹–›Ž‡‰ƒŽŽ›‡–‹–Ž‡†–‘ ‘”
‡–”—•–‡†„›–Š‡
‘˜‡”‡–™‹–Š–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆƒ—‹…‹’ƒŽ‘”Ž‘…ƒŽˆ—†Ǥ
˜‡”›ƒ”–‹ϐ‹…‹ƒŽǡŒ—”‹†‹…ƒŽ’‡”•‘ǡ‘–ˆƒŽŽ‹‰™‹–Š‹ƒ›‘ˆ–Š‡ƒ„‘˜‡…ƒ–‡‰‘”‹‡•
Š‹•‹•ƒ”‡•‹†—ƒ”›…Žƒ—•‡Ǥˆ–Š‡ƒ••‡••‡‡†‘‡•‘–ˆƒŽŽ‹ƒ›‘ˆ–Š‡ϐ‹”•–•‹š…ƒ–‡‰‘”‹‡•ǡŠ‡‹•ƒ••‡••‡†—†‡”–Š‹•
…Žƒ—•‡Ǥ
‡‡”ƒŽŽ›ǡƒ•–ƒ–—–‘”›…‘”’‘”ƒ–‹‘ǡ†‡‹–›‘”…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘‘”ƒ‡†‘™‡–ˆ‘”…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•
’—”’‘•‡•ˆƒŽŽ•—†‡”ƒ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ’‡”•‘Ǥ
ASSESSEE [SECTION 2(7)]
Ȉ Žƒ›ƒŽƒ‰—ƒ‰‡–ƒš’ƒ›‡”‹•ƒ••‡••‡‡ǡŠ‡ƒ›„‡–Š‡’‡”•‘‘ˆƒ›‘ˆ–Š‡ƒ„‘˜‡…ƒ–‡‰‘”‹‡•
Ȉ •’‡”‡…–‹‘ʹȋ͹Ȍ‘ˆ…‘‡ƒš…–ǡƒ••‡••‡‡‹•ƒ’‡”•‘
_ „›™Š‘ƒ›–ƒš‘”
_ ƒ›‘–Š‡”•—‘ˆ‘‡›
 32 Lesson 2 Ȉ EP-TL

‹•’ƒ›ƒ„Ž‡—†‡”…‘‡ƒš…–Ǥ–‹…Ž—†‡•‡˜‡”›’‡”•‘ǣ

ȋƒȌ ‹”‡•’‡…–‘ˆ™Š‘ƒ›’”‘…‡‡†‹‰—†‡”…‘‡ƒš…–Šƒ•„‡‡–ƒ‡ˆ‘”ƒ••‡••‡–‘ˆ
Ȉ Š‹•‹…‘‡‘”
Ȉ ˆ”‹‰‡„‡‡ϐ‹–•‘”
Ȉ –Š‡‹…‘‡‘ˆƒ›‘–Š‡”’‡”•‘‹”‡•’‡…–‘ˆ™Š‹…ŠŠ‡‹•ƒ••‡••ƒ„Ž‡‘”
Ȉ –Š‡Ž‘•••—•–ƒ‹‡†„›Š‹‘”„›•—…Š‘–Š‡”’‡”•‘‘”
Ȉ –Š‡ƒ‘—–‘ˆ”‡ˆ—††—‡–‘Š‹‘”–‘•—…Š‘–Š‡”’‡”•‘Ǥ
ȋ„Ȍ ™Š‘‹•†‡‡‡†–‘„‡ƒƒ••‡••‡‡—†‡”ƒ›’”‘˜‹•‹‘‘ˆ…‘‡ƒš…–Ǣ
ȋ…Ȍ ™Š‘‹•†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–—†‡”ƒ›’”‘˜‹•‹‘‘ˆ…‘‡ƒš…–Ǥ

……‘”†‹‰Ž›ǡ ƒ••‡••‡‡ ‹• ƒ ’‡”•‘ „› ™Š‘ –ƒš ‘” ƒ› ‘–Š‡” •— ‹• ’ƒ›ƒ„Ž‡ —†‡” –Š‡ …–Ǥ Š‡ ‡š’”‡••‹‘
Dz‘–Š‡”•—‘ˆ‘‡›dz‹…Ž—†‡•
Ȉ ϐ‹‡ǡ‹–‡”‡•–ǡ’‡ƒŽ–›ƒ†–ƒš‘”
Ȉ ’‡”•‘–‘™Š‘ƒ›”‡ˆ—†‘ˆ–ƒš‡–…Ǥ‹•†—‡—†‡”–Š‡…–‘”
Ȉ ‹ˆƒ›’”‘…‡‡†‹‰—†‡”–Š‡…–Šƒ•„‡‡–ƒ‡ƒ‰ƒ‹•–ƒ›’‡”•‘ǡŠ‡‹•ƒŽ•‘ƒƒ••‡••‡‡Ǥ‡‡„‡”ǡ –Š‡
’”‘…‡‡†‹‰•—•–„‡‹‹–‹ƒ–‡†—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–Ǥ‘–Š‡”™‘”†•ǡƒ•‹‰Ž‡‡“—‹”›Ž‡––‡”‹••—‡†„›
–Š‡ …‘‡Ǧ–ƒš ‡’ƒ”–‡– ™‹–Š‘—– ”‡ˆ‡”‡…‡ –‘ ƒ› •’‡…‹ϐ‹… ’”‘˜‹•‹‘ ‘ˆ –Š‡ …– †‘‡• ‘– …‘•–‹–—–‡
’”‘…‡‡†‹‰—†‡”–Š‡…–ƒ†ǡƒ••—…Šǡ–‹ŽŽ’”‘…‡‡†‹‰•ƒ”‡‹‹–‹ƒ–‡†—†‡”–Š‡…–ǡ–Š‡’‡”•‘ ƒ›‘–„‡…‘‡
ƒƒ••‡••‡‡™‹–Š‹–Š‡ƒ„‹–‘ˆ‡…–‹‘ʹȋ͹Ȍ‘ˆ–Š‡…–Ǥ

ASSESSMENT YEAR [SECTION 2(9)]

Dz••‡••‡– ›‡ƒ”dz ‡ƒ• –Š‡ ’‡”‹‘† ‘ˆ –™‡Ž˜‡ ‘–Š• …‘‡…‹‰ ‘ ͳ•– ’”‹Ž ‡˜‡”› ›‡ƒ”Ǥ Š‡”‡ˆ‘”‡ǡ –Š‡
’‡”‹‘†„‡‰‹‹‰‘ͳ•–’”‹Ž‘ˆ‘‡›‡ƒ”ƒ†‡†‹‰‘͵ͳ•–ƒ”…Š‘ˆ–Š‡‡š–›‡ƒ”Ǥ…‘‡‘ˆ’”‡˜‹‘—•›‡ƒ”‘ˆ ƒ
ƒ••‡••‡‡‹•–ƒš‡††—”‹‰–Š‡ˆ‘ŽŽ‘™‹‰ƒ••‡••‡–›‡ƒ”ƒ––Š‡”ƒ–‡•’”‡•…”‹„‡†„›–Š‡”‡Ž‡˜ƒ– ‹ƒ…‡…–Ǥ

Exception to the General Rule:  –Š‡ ˆ‘ŽŽ‘™‹‰ •‹–—ƒ–‹‘ǡ –Š‡ …‘‡ ‘ˆ ’”‡˜‹‘—• ›‡ƒ” ‘ˆ ƒ ƒ••‡••‡‡ ‹•
ƒ••‡••‡†‹–Š‡’”‡˜‹‘—•›‡ƒ”‹–•‡Žˆǣ
ͳǤ Income of Non-Resident from Shipping: ȏ‡…–‹‘ ͳ͹ʹȐǦ  ‘ ”‡•‹†‡– ™Š‘ ‹• …ƒ””›‹‰ ‘ ƒ •Š‹’’‹‰
„—•‹‡••ƒ†‡ƒ”•‹…‘‡ƒ–ƒ›’‘”–‹†‹ƒǡ•ŠƒŽŽ„‡…Šƒ”‰‡†–‘–ƒš„‡ˆ‘”‡–Š‡•Š‹’‹•ƒŽŽ‘™‡†–‘Ž‡ƒ˜‡†‹ƒ
‘”–Ǥ ‡…‡ ‹…‘‡ ‹• †‡‡‡† ƒ† …‘’—–‡† ƒ– ƒ ’”‡•—’–‹˜‡ ”ƒ–‡ ‘ˆ ͹ǤͷΨ ‘ˆ –Š‡ ƒ‘—– ‘ˆ –Š‡ˆƒ”‡Ȁ
ˆ”‡‹‰Š–…Šƒ”‰‡†„›–Š‡‘Ǧ”‡•‹†‡–•Š‹’ˆ”‘–Š‡†‹ƒ’‘”–Ǥ
ʹǤ Income of persons leaving India either permanently or for long duration: ȏ‡…–‹‘ͳ͹ͶȐǦŠ‡‹–ƒ’’‡ƒ”•
–‘ –Š‡••‡••‹‰ ˆϐ‹…‡” ȋǤǤȌ –Šƒ– ƒ ‹†‹˜‹†—ƒŽ ƒ› Ž‡ƒ˜‡ †‹ƒ ƒ† Šƒ• ‘ ‹–‡–‹‘• ‘ˆ ”‡–—”‹‰„ƒ…
†—”‹‰ƒƒ••‡••‡–›‡ƒ”ǡ–Š‡–Š‡‹…‘‡‹•…Šƒ”‰‡†–‘–ƒš†—”‹‰–Š‡•ƒ‡••‡••‡–›‡ƒ”Ǥ
͵Ǥ Income of bodies formed for short duration: ȏ‡…–‹‘ ͳ͹ͶȐǦŠ‡ ‹–ƒ’’‡ƒ”• –‘–Š‡••‡••‹‰ˆϐ‹…‡”
ȋǤǤȌ–Šƒ–ƒ›‘”‰ƒ‹œƒ–‹‘‹•ˆ‘”‡†ˆ‘”ƒ’ƒ”–‹…—Žƒ”‡˜‡–ƒ†‹•Ž‹‡Ž›–‘„‡†‹••‘Ž˜‡††—”‹‰–Š‡…—””‡–
ƒ••‡••‡–›‡ƒ”Ǥ
ͶǤ Income of person trying to transfer his assets with a view to avoid tax:ȏ‡…–‹‘ͳ͹ͷȐǦŠ‡‹–ƒ’’‡ƒ”•
–‘–Š‡••‡••‹‰ˆϐ‹…‡”ȋǤǤȌ–Šƒ–†—”‹‰–Š‡…—””‡–ƒ••‡••‡–›‡ƒ”ƒ›’‡”•‘‹• Ž‹‡Ž›–‘…Šƒ”‰‡ǡ•‡ŽŽǡ
–”ƒ•ˆ‡”ǡ†‹•’‘•‡‘ˆ‘”‘–Š‡”™‹•‡’ƒ”–™‹–Šƒ›‘ˆ Š‹•ƒ••‡–•–‘ƒ˜‘‹†’ƒ›‡–‘ˆƒ›Ž‹ƒ„‹Ž‹–›—†‡” –Š‹•…–ǡ–Š‡
–‘–ƒŽ‹…‘‡‘ˆ•—…Š’‡”•‘ˆ‘”–Š‡’‡”‹‘†ˆ”‘–Š‡‡š’‹”›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”–‘–Š‡†ƒ–‡ǡ™Š‡–Š‡••‡••‹‰
ˆϐ‹…‡” …‘‡…‡•’”‘…‡‡†‹‰• —†‡” –Š‹••‡…–‹‘ ‹•…Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ‹ –Šƒ–ƒ••‡••‡–›‡ƒ”Ǥ
ͷǤ Income of discontinued business: ȏ‡…–‹‘ ͳ͹͸ȐǦ Š‡”‡ ƒ› „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ‹• †‹•…‘–‹—‡† ‹
ƒ› ƒ••‡••‡– ›‡ƒ”ǡ –Š‡ ‹…‘‡ ‘ˆ –Š‡ ’‡”‹‘† ˆ”‘ –Š‡ ‡š’‹”› ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” —’ –‘ –Š‡ †ƒ–‡ ‘ˆ •—…Š
†‹•…‘–‹—ƒ…‡ ƒ›ǡƒ– –Š‡ †‹•…”‡–‹‘‘ˆ –Š‡••‡••‹‰ˆϐ‹…‡”ǡ „‡ …Šƒ”‰‡† –‘ –ƒš ‹–Šƒ– ƒ••‡••‡–›‡ƒ”Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 33

PREVIOUS YEAR [SECTION 3]

…‘‡ –ƒš ‹• ’ƒ›ƒ„Ž‡ ‘ –Š‡ ‹…‘‡ ™Š‹…Š ‹• ‡ƒ”‡† †—”‹‰ –Š‡ ”‡˜‹‘—• ‡ƒ” ƒ† ‹– ‹• ƒ••‡••‡† ‹ –Š‡
‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”™Š‹…Š‹•…ƒŽŽ‡†ƒ••‡••‡–‡ƒ”Ǥ

ŽŽƒ••‡••‡•ƒ”‡”‡“—‹”‡†–‘ˆ‘ŽŽ‘™ƒ—‹ˆ‘”’”‡˜‹‘—•›‡ƒ”ǡ‹Ǥ‡ǤǡŠ‡ ‹ƒ…‹ƒŽ‡ƒ”ȋͳ•–’”‹Ž–‘͵ͳ•–ƒ”…ŠȌƒ• –Š‡‹”

”‡˜‹‘—• ›‡ƒ”ǤŽ–Š‘—‰Š ƒ••‡••‡‡ ƒ› ƒ‹–ƒ‹ „‘‘• ‘ˆ ƒ……‘—–• ‘ …ƒŽ‡†ƒ” ›‡ƒ” „ƒ•‹• ȋͳ•– ƒ—ƒ”› –‘ ͵ͳ•–
‡…‡„‡”Ȍ„—–Š‹•’”‡˜‹‘—•›‡ƒ”ˆ‘”‹…‘‡–ƒš’—”’‘•‡••ŠƒŽŽ„‡–Š‡ ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
ƒ…Šϐ‹ƒ…‹ƒŽ›‡ƒ”‹•„‘–Šǡƒ’”‡˜‹‘—•›‡ƒ”ƒ•™‡ŽŽƒ•ƒƒ••‡••‡–›‡ƒ”Ǥ–‹•–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”–Š‡‹…‘‡‡ƒ”‡†
†—”‹‰ –Š‡ ϐ‹ƒ…‹ƒŽ ›‡ƒ” ƒ† ƒ••‡••‡– ›‡ƒ” ˆ‘” –Š‡ ‹…‘‡ ‡ƒ”‡† †—”‹‰ –Š‡ ’”‡…‡†‹‰ ’”‡˜‹‘—•›‡ƒ”Ǥ ‘”
‡šƒ’Ž‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͳǦʹʹ‹•–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”–Š‡‹…‘‡‡ƒ”‡††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ” ʹͲʹͳǦʹʹƒ†
ƒ••‡••‡–›‡ƒ”ˆ‘”–Š‡‹…‘‡‡ƒ”‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͲǦʹͳǤ
…ƒ•‡‘ˆ‡™Ž›•‡–—’„—•‹‡••‘”’”‘ˆ‡••‹‘‘”ƒ•‘—”…‡‘ˆ‹…‘‡‡™Ž›…‘‹‰‹–‘‡š‹•–‡…‡ǡ–Š‡ϐ‹”•– ’”‡˜‹‘—• ›‡ƒ”
™‹ŽŽ„‡–Š‡’‡”‹‘†…‘‡…‹‰ˆ”‘–Š‡†ƒ–‡‘ˆ•‡––‹‰—’‘ˆ„—•‹‡••Ȁ’”‘ˆ‡••‹‘‘”ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡ †ƒ–‡‘
™Š‹…Š–Š‡•‘—”…‡‘ˆ‹…‘‡‡™Ž›…‘‡•‹–‘‡š‹•–‡…‡ƒ†‡†‹‰‘–Š‡‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰ƒ”…Šǡ͵ͳǤ
šƒ’Ž‡•‘ˆ’”‡˜‹‘—•›‡ƒ”‹–Š‡…ƒ•‡‘ˆ‡™Ž›•‡–Ǧ—’„—•‹‡••Ȁ’”‘ˆ‡••‹‘Ǥ
Example 1 ǣ•‡–•—’ƒ‡™„—•‹‡••‘ƒ›ͳͷǡʹͲʹͳǤŠƒ–‹•–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ” ʹͲʹʹǦʹ͵Ǥ
Answer ǣ”‡˜‹‘—•›‡ƒ”ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵‹•–Š‡’‡”‹‘†…‘‡…‹‰‘ƒ›ͳͷǡʹͲʹͳƒ† ‡†‹‰
‘ƒ”…Š͵ͳǡʹͲʹʹǤ
Example 2 ǣŒ‘‹•ƒ†‹ƒ…‘’ƒ›‘ ‡„”—ƒ”›ͳ͹ǡʹͲʹͳǤ”‹‘”–‘Œ‘‹‹‰–Š‹•†‹ƒ…‘’ƒ›Š‡™ƒ•‘–‹
‡’Ž‘›‡–‘”†‘‡•Š‡Šƒ˜‡ƒ›‘–Š‡”•‘—”…‡‘ˆ‹…‘‡Ǥ‡–‡”‹‡–Š‡’”‡˜‹‘—•›‡ƒ”‘ˆˆ‘”–Š‡ƒ••‡••‡– ›‡ƒ”•
ʹͲʹͳǦʹʹƒ†ʹͲʹʹǦʹ͵Ǥ
Answer ǣ”‡˜‹‘—•›‡ƒ”•ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”•ʹͲʹͳǦʹʹƒ†ʹͲʹʹǦʹ͵™‹ŽŽ„‡ƒ•ˆ‘ŽŽ‘™•Ǥ
Previous year Assessment year
‡„Ǥͳ͹ǡʹͲʹͳ–‘ƒ”…Š͵ͳǡʹͲʹͳ     ʹͲʹͳǦʹʹ
’”‹ŽͳǡʹͲʹͳ–‘ƒ”…Š͵ͳǡʹͲʹʹ     ʹͲʹʹǦʹ͵
INDIA [SECTION 2(25A)]
Š‡–‡”Ǯ†‹ƒǯ‡ƒ•Ȃ
ȋ‹Ȍ –Š‡–‡””‹–‘”›‘ˆ†‹ƒƒ•’‡””–‹…Ž‡ͳ‘ˆ–Š‡‘•–‹–—–‹‘ǡ
ȋ‹‹Ȍ ‹–•–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǡ•‡ƒ„‡†ƒ†•—„•‘‹Ž—†‡”Ž›‹‰•—…Š™ƒ–‡”•ǡ
ȋ‹‹‹Ȍ …‘–‹‡–ƒŽ•Š‡Žˆǡ
ȋ‹˜Ȍ ‡š…Ž—•‹˜‡‡…‘‘‹…œ‘‡ǡ‘”
ȋ˜Ȍ ƒ›‘–Š‡”•’‡…‹ϐ‹‡†ƒ”‹–‹‡œ‘‡ƒ†–Š‡ƒ‹”•’ƒ…‡ƒ„‘˜‡‹–•–‡””‹–‘”›ƒ†–‡””‹–‘”‹ƒŽ™ƒ–‡”•Ǥ

’‡…‹ϐ‹‡† ƒ”‹–‹‡ œ‘‡ ‡ƒ• –Š‡ ƒ”‹–‹‡ œ‘‡ ƒ• ”‡ˆ‡””‡† –‘ ‹ –Š‡ ‡””‹–‘”‹ƒŽ ƒ–‡”•ǡ ‘–‹‡–ƒŽ Š‡Žˆǡ
š…Ž—•‹˜‡…‘‘‹…‘‡ƒ†‘–Š‡”ƒ”‹–‹‡‘‡•…–ǡͳͻ͹͸Ǥ
MAXIMUM MARGINAL RATE AND AVERAGE RATE OF TAX

•’‡”•‡…–‹‘ʹȋͳͲȌǡDz˜‡”ƒ‰‡ƒ–‡‘ˆ‹…‘‡Ǧ–ƒšdz‡ƒ•–Š‡”ƒ–‡ƒ””‹˜‡†ƒ–„›†‹˜‹†‹‰–Š‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒš
…ƒŽ…—Žƒ–‡†‘–Š‡–‘–ƒŽ‹…‘‡ǡ„›•—…Š–‘–ƒŽ‹…‘‡Ǥ

‡…–‹‘ʹȋʹͻȌ†‡ϐ‹‡•Dzƒš‹—ƒ”‰‹ƒŽƒ–‡dz–‘‡ƒ–Š‡”ƒ–‡‘ˆ‹…‘‡Ǧ–ƒšȋ‹…Ž—†‹‰•—”…Šƒ”‰‡‘–Š‡
‹…‘‡Ǧ–ƒšǡ ‹ˆ ƒ›Ȍ ƒ’’Ž‹…ƒ„Ž‡ ‹”‡Žƒ–‹‘–‘–Š‡Š‹‰Š‡•–•Žƒ„‘ˆ ‹…‘‡‹ –Š‡…ƒ•‡‘ˆ ƒ ‹†‹˜‹†—ƒŽǡ‘”
ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ••’‡…‹ϐ‹‡†‹ ‹ƒ…‡…–‘ˆ–Š‡”‡Ž‡˜ƒ–›‡ƒ”Ǥ
 34 Lesson 2 Ȉ EP-TL

INCOME [SECTION 2(24)]

Dz…‘‡ ‹• –Š‡ …‘•—’–‹‘ ƒ† •ƒ˜‹‰• ‘’’‘”–—‹–› ‰ƒ‹‡† „› ƒ ‡–‹–› ™‹–Š‹ ƒ •’‡…‹ϐ‹… –‹‡ˆ”ƒ‡ǡ ™Š‹…Š ‹•
‰‡‡”ƒŽŽ› ‡š’”‡••‡† ‹ ‘‡–ƒ”› –‡”•Ǥ ‘™‡˜‡”ǡ ˆ‘” Š‘—•‡Š‘Ž†• ƒ† ‹†‹˜‹†—ƒŽ•ǡ Dz‹…‘‡ ‹• –Š‡ •— ‘ˆ ƒŽŽ –Š‡
™ƒ‰‡•ǡ•ƒŽƒ”‹‡•ǡ’”‘ϐ‹–ǡ‹–‡”‡•–•’ƒ›‡–•ǡ”‡–•ǡƒ†‘–Š‡”ˆ‘”•‘ˆ‡ƒ”‹‰•”‡…‡‹˜‡†‹ƒ‰‹˜‡’‡”‹‘†‘ˆ–‹‡Ǥdz

‰‡‡”ƒŽ–‡”•ǡ…‘‡‹•ƒ’‡”‹‘†‹…ƒŽ‘‡–ƒ”›”‡–—”™‹–Š•‘‡•‘”–‘ˆ”‡‰—Žƒ”‹–›Ǥ‘™‡˜‡”ǡ–Š‡…‘‡ƒš

…–ǡ‡˜‡…‡”–ƒ‹‹…‘‡™Š‹…Š†‘‡•‘–ƒ”‹•‡”‡‰—Žƒ”Ž›ƒ”‡–”‡ƒ–‡†ƒ•‹…‘‡ˆ‘”–ƒš’—”’‘•‡•‡Ǥ‰Ǥ‹‹‰•
ˆ”‘Ž‘––‡”‹‡•ǡ…”‘••™‘”†’—œœŽ‡•Ǥ
Š‡†‡ϐ‹‹–‹‘‘ˆ…‘‡ƒ•‰‹˜‡‹‡…–‹‘ʹȋʹͶȌ‘ˆ–Š‡…–•–ƒ”–•™‹–Š–Š‡™‘”†‹…Ž—†‡•–Š‡”‡ˆ‘”‡–Š‡Ž‹•–‹•
‹…Ž—•‹˜‡‘–‡šŠƒ—•–‹˜‡ǤŠ‡†‡ϐ‹‹–‹‘‡—‡”ƒ–‡•…‡”–ƒ‹‹–‡•ǡ‹…Ž—†‹‰–Š‘•‡™Š‹…Š…ƒ‘–‘”†‹ƒ”‹Ž›„‡
…‘•‹†‡”‡†ƒ•‹…‘‡„—–ƒ”‡–”‡ƒ–‡†•–ƒ–—–‘”‹Ž›ƒ••—…ŠǤ

•’‡”•‡…–‹‘ʹȋʹͶȌǡ–Š‡–‡”‹…‘‡‹…Ž—†‡•ǣ

S.
Income under Section 2(24) of the Income tax Act, 1961 Head of Income
No.
ͳǤ ”‘ϐ‹–•ƒ†‰ƒ‹• 

ʹǤ ‹˜‹†‡† –Š‡”‘—”…‡•
͵Ǥ ‘Ž—–ƒ”› …‘–”‹„—–‹‘• ”‡…‡‹˜‡† „› ƒ –”—•–Ȁ‹•–‹–—–‹‘ …”‡ƒ–‡† ™Š‘ŽŽ› ‘”
‡‡”ƒŽŽ›‡š‡’–—†‡”
’ƒ”–Ž› ˆ‘” …Šƒ”‹–ƒ„Ž‡ ‘” ”‡Ž‹‰‹‘—• ’—”’‘•‡• ‘” „› …‡”–ƒ‹ ”‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘ ‡…–‹‘ͳͳƒ†ͳʹ
‘”—‹˜‡”•‹–‹‡•ƒ†‘–Š‡”‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘•‘”Š‘•’‹–ƒŽ• ƒ†‘–Š‡”‡†‹…ƒŽ
‹•–‹–—–‹‘•‘”ƒ‡Ž‡…–‘”ƒŽ–”—•–Ǥ
ͶǤ Š‡˜ƒŽ—‡‘ˆƒ›’‡”“—‹•‹–‡‘”’”‘ϐ‹–‹Ž‹‡—‘ˆ•ƒŽƒ”›Ǧ ƒŽƒ”›
ͷǤ Any special allowance ‘”„‡‡ϐ‹–•’‡…‹ϐ‹…ƒŽŽ›‰”ƒ–‡†–‘–Š‡ƒ••‡••‡‡–‘ ‡‡– ƒŽƒ”›ȋ
‡‡”ƒŽŽ›
‡š’‡•‡•™Š‘ŽŽ›ǡ‡…‡••ƒ”‹Ž›ƒ†‡š…Ž—•‹˜‡Ž›ˆ‘”–Š‡’‡”ˆ‘”ƒ…‡ ‘ˆ–Š‡†—–‹‡•‘ˆ ‡š‡’–Ȍ
ƒ‘ˆϐ‹…‡‘”‡’Ž‘›‡–‘ˆ’”‘ϐ‹–Ǥ
͸Ǥ City Compensatory Allowance/ Dearness allowanceǣ›ƒŽŽ‘™ƒ…‡ ‰”ƒ–‡† ƒŽƒ”›
–‘ –Š‡ ƒ••‡••‡‡ ‡‹–Š‡” –‘‡‡–Š‹•’‡”•‘ƒŽ ‡š’‡•‡•ƒ– –Š‡ ’Žƒ…‡ ™Š‡”‡ –Š‡
†—–‹‡• ‘ˆ Š‹• ‘ˆϐ‹…‡ ‘” ‡’Ž‘›‡– ‘ˆ ’”‘ϐ‹– ƒ”‡‘”†‹ƒ”‹Ž›’‡”ˆ‘”‡†„›Š‹‘”ƒ–ƒ
’Žƒ…‡™Š‡”‡Š‡‘”†‹ƒ”‹Ž›”‡•‹†‡•‘”–‘…‘’‡•ƒ–‡Š‹ˆ‘”–Š‡‹…”‡ƒ•‡†…‘•–‘ˆŽ‹˜‹‰Ǥ
͹Ǥ B‡‡ϐ‹– ‘” ‡”“—‹•‹–‡ –‘ ƒ ‹”‡…–‘”ǣ Š‡ ˜ƒŽ—‡ ‘ˆ ƒ› „‡‡ϐ‹– ‘”’‡”“—‹•‹–‡ǡ ƒŽƒ”› ȋˆ ƒ• ’‡”
™Š‡–Š‡” …‘˜‡”–‹„Ž‡ ‹–‘ ‘‡› ‘” ‘–ǡ ‘„–ƒ‹‡† ˆ”‘ ƒ …‘’ƒ›„›ǤȋƒȌƒ ‡’Ž‘›‡–ƒ‰”‡‡‡–Ȍ
†‹”‡…–‘”ǡ ‘” ȋ„Ȍ ƒ ’‡”•‘ Šƒ˜‹‰ •—„•–ƒ–‹ƒŽ ‹–‡”‡•– ‹ –Š‡ …‘’ƒ›ǡ ‘” ȋ…Ȍ ƒ Ž•‡ —†‡” –Š‡”
”‡Žƒ–‹˜‡‘ˆ–Š‡†‹”‡…–‘”‘”‘ˆ–Š‡’‡”•‘Šƒ˜‹‰ •—„•–ƒ–‹ƒŽ‹–‡”‡•–ǡƒ†ƒ›•— ‘—”…‡• ȋˆ ‘– ‹ –Š‡
’ƒ‹† „› ƒ› •—…Š …‘’ƒ› ‹ ”‡•’‡…– ‘ˆ ƒ› ‘„Ž‹‰ƒ–‹‘ ™Š‹…Šǡ „—– ˆ‘” •—…Š –‡”• ‘ˆ ‡’Ž‘›‡–
’ƒ›‡–ǡ™‘—Ž†Šƒ˜‡„‡‡’ƒ›ƒ„Ž‡ „›–Š‡†‹”‡…–‘”‘”‘–Š‡”’‡”•‘ƒˆ‘”‡•ƒ‹†Ǥ ƒ‰”‡‡‡–Ȍ
ͺǤ › ‡‡ϐ‹– ‘” ’‡”“—‹•‹–‡ –‘ ƒ ‡’”‡•‡–ƒ–‹˜‡ ••‡••‡‡ ǣ Š‡˜ƒŽ—‡ ‘ˆ –Š‡”‘—”…‡•
ƒ› „‡‡ϐ‹– ‘” ’‡”“—‹•‹–‡ ȋ™Š‡–Š‡”…‘˜‡”–‹„Ž‡‹–‘‘‡›‘”‘–Ȍ‘„–ƒ‹‡†„›
ƒ›”‡’”‡•‡–ƒ–‹˜‡ƒ••‡••‡‡—†‡”‡…–‹‘ͳ͸ͲȋͳȌȋ‹‹‹ȌȀȋ‹˜Ȍ ‘” „‡‡ϐ‹…‹ƒ”›ǡ ‘” ƒ›
ƒ‘—–’ƒ‹†„›–Š‡”‡’”‡•‡–ƒ–‹˜‡ƒ••‡••‡‡ ‹”‡•’‡…–‘ˆƒ›‘„Ž‹‰ƒ–‹‘™Š‹…Šǡ
„—–ˆ‘”•—…Š’ƒ›‡–ǡ™‘—Ž†Šƒ˜‡ „‡‡’ƒ›ƒ„Ž‡„›–Š‡„‡‡ϐ‹…‹ƒ”›Ǥ
ͻǤ ‡‡‡†’”‘ϐ‹–•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”•‡…–‹‘ʹͺ‘”•‡…–‹‘Ͷͳ‘”•‡…–‹‘ͷͻǤ 

ͳͲǤ Capital Gain ǣ›…ƒ’‹–ƒŽ‰ƒ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”‡…–‹‘ͶͷǢ•‹…‡ –Š‡ ƒ’‹–ƒŽ
ƒ‹•
†‡ϐ‹‹–‹‘ ‘ˆ ‹…‘‡ ‹ ‡…–‹‘ ʹȋʹͶȌ ‹• ‹…Ž—•‹˜‡ ƒ† ‘–‡šŠƒ—•–‹˜‡…ƒ’‹–ƒŽ
‰ƒ‹•…Šƒ”‰‡ƒ„Ž‡—†‡”‡…–‹‘Ͷ͸ȋʹȌƒ”‡ƒŽ•‘ ƒ••‡••ƒ„Ž‡ƒ•‹…‘‡Ǥ
ͳͳǤ •—”ƒ…‡ ”‘ϐ‹– ǣ Š‡ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ ƒ› •—”ƒ…‡ „—•‹‡••…ƒ””‹‡†‘ 

„›ƒ—–—ƒŽ‹•—”ƒ…‡…‘’ƒ›‘”„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›…‘’—–‡†‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͶͶ‘”ƒ›•—”’Ž—• –ƒ‡–‘„‡•—…Š’”‘ϐ‹–•ƒ†‰ƒ‹•
„›˜‹”–—‡‘ˆ–Š‡’”‘ϐ‹–•…‘–ƒ‹‡†‹–Š‡ ‹”•–…Š‡†—Ž‡–‘–Š‡…‘‡Ǧ–ƒš…–Ǥ
Lesson 2 Ȉ Basic Concept of Income Tax 35

ͳʹǤ Banking income of a Co-operative Society ǣ Š‡ ’”‘ϐ‹–• ƒ† ‰ƒ‹•‘ˆ ƒ› 

„—•‹‡•• ‘ˆ „ƒ‹‰ ȋ‹…Ž—†‹‰Ȍ ’”‘˜‹†‹‰ …”‡†‹– ˆƒ…‹Ž‹–‹‡• …ƒ””‹‡† ‘ „› ƒ
…‘‘’‡”ƒ–‹˜‡•‘…‹‡–›™‹–Š‹–•‡„‡”•Ǥ
ͳ͵Ǥ Winnings from Lottery ǣ › ™‹‹‰• ˆ”‘ Ž‘––‡”‹‡•ǡ …”‘••™‘”† ’—œœŽ‡•ǡ –Š‡”‘—”…‡•
”ƒ…‡•ǡ ‹…Ž—†‹‰ Š‘”•‡Ǧ”ƒ…‡•ǡ …ƒ”†Ǧ‰ƒ‡• ƒ† ‰ƒ‡• ‘ˆ ƒ› •‘”– ‘” ˆ”‘
‰ƒ„Ž‹‰‘”„‡––‹‰‘ˆƒ›ˆ‘”Ǥ
ͳͶǤ Employees Contribution Towards Provident Fund ǣ › •— ”‡…‡‹˜‡† „› 
‹ˆ‘–†‡’‘•‹–‡† „›
–Š‡ ƒ••‡••‡‡ ˆ”‘ Š‹• ‡’Ž‘›‡‡• ƒ• …‘–”‹„—–‹‘• –‘ ƒ› ’”‘˜‹†‡– ˆ—† ‘” –Š‡ ƒ••‡••‡‡ –‘ –Š‡
•—’‡”ƒ—ƒ–‹‘ˆ—†‘”ƒ›ˆ—†•‡–Ǧ—’—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡’Ž‘›‡‡• •’‡…‹ϐ‹‡†ˆ—†
–ƒ–‡•—”ƒ…‡…–ǡͳͻͶͺȋ͵Ͷ‘ˆͳͻͶͺȌ‘” ƒ›‘–Š‡”ˆ—†ˆ‘”–Š‡™‡Žˆƒ”‡‘ˆ•—…Š
‡’Ž‘›‡‡•Ǥ
ͳͷǤ Amount Received under Keyman Insurance Policy ǣ›•—”‡…‡‹˜‡† —†‡”ƒ 

‡›ƒ•—”ƒ…‡‘Ž‹…›‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ „‘—• ‘ •—…Š
’‘Ž‹…›Ǥ‡›ƒ•—”ƒ…‡‘Ž‹…›‡ƒ•ƒŽ‹ˆ‡‹•—”ƒ…‡ ’‘Ž‹…›–ƒ‡„›ƒ’‡”•‘
‘–Š‡Ž‹ˆ‡‘ˆƒ‘–Š‡”’‡”•‘™Š‘‹•‘”™ƒ•–Š‡ ‡’Ž‘›‡‡‘ˆ–Š‡ϐ‹”•–‡–‹‘‡†
’‡”•‘‘”‹•‘”™ƒ•…‘‡…–‡†™‹–Š–Š‡ „—•‹‡••‘ˆ–Š‡ϐ‹”•–‡–‹‘‡†’‡”•‘‹
ƒ›ƒ‡”™Šƒ–•‘‡˜‡”Ǥ
ͳ͸Ǥ Amount received for not carrying out any activity ǣ›•—”‡ˆ‡””‡† –‘ ‹ 

‡…–‹‘ ʹͺȋ˜ƒȌǡ ‹Ǥ‡Ǥ ƒ› •—ǡ ™Š‡–Š‡” ”‡…‡‹˜‡† ‘” ”‡…‡‹˜ƒ„Ž‡ ‹ …ƒ•Š‘”‹†ǡ
—†‡”ƒƒ‰”‡‡‡–ˆ‘”Ǧ
ȋ‹Ȍ‘–…ƒ””›‹‰‘—–ƒ›ƒ…–‹˜‹–›‹”‡Žƒ–‹‘–‘ƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘Ǣ
ȋ‹‹Ȍ ‘– •Šƒ”‹‰ ƒ› ‘™ǦŠ‘™ǡ ’ƒ–‡–ǡ …‘’›”‹‰Š–ǡ –”ƒ†‡Ǧƒ”ǡ Ž‹…‡•‡ǡ
ˆ”ƒ…Š‹•‡‘”ƒ›‘–Š‡”„—•‹‡••‘”…‘‡”…‹ƒŽ”‹‰Š–‘ˆ•‹‹Žƒ”ƒ–—”‡‘”
‹ˆ‘”ƒ–‹‘‘”–‡…Š‹“—‡Ž‹‡Ž›–‘ƒ••‹•–‹–Š‡ƒ—ˆƒ…–—”‡‘”’”‘…‡••‹‰
‘ˆ‰‘‘†•‘”’”‘˜‹•‹‘ˆ‘”•‡”˜‹…‡•
ͳ͹Ǥ ›•—”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ˜Ȍ‘”ȋ˜‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͷ͸ –Š‡”•‘—”…‡•
ͳͺǤ Gift received for an amount exceeding Rs. 50,000 : › •— ‘ˆ‘‡›‘” –Š‡”•‘—”…‡•
˜ƒŽ—‡‘ˆ’”‘’‡”–›”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ˜‹‹Ȍ‘”…Žƒ—•‡ȋ˜‹‹ƒȌ‘ˆ •—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ
‡…–‹‘ͷ͸
ͳͻǤ › …‘•‹†‡”ƒ–‹‘ ”‡…‡‹˜‡† ˆ‘” ‹••—‡ ‘ˆ •Šƒ”‡• ƒ• ‡š…‡‡†• –Š‡ ˆƒ‹” ƒ”‡– –Š‡”•‘—”…‡•
˜ƒŽ—‡‘ˆ–Š‡•Šƒ”‡•”‡ˆ‡””‡†‹•‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„ȌǤ
ʹͲǤ ‘—–”‡…‡‹˜‡†ƒ•ƒƒ†˜ƒ…‡‘”‘–Š‡”™‹•‡‹–Š‡…‘—”•‡‘ˆ‡‰‘–‹ƒ–‹‘ ˆ‘” –Š‡”•‘—”…‡•
–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹šȌ‘ˆ•‡…–‹‘ͷ͸ȋʹȌǤ
ʹͳǤ ›•—‘ˆ‘‡›‘”˜ƒŽ—‡‘ˆ’”‘’‡”–›”‡…‡‹˜‡†™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ ‘”ˆ‘” –Š‡”•‘—”…‡•
‹ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ƒ•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋšȌ‘ˆ‡…–‹‘ ͷ͸ȋʹȌ
ʹʹǤ ›…‘’‡•ƒ–‹‘‘”’ƒ›‡–‹…‘‡…–‹‘™‹–Š–‡”‹ƒ–‹‘‘ˆ –Š‡”•‘—”…‡•
‡’Ž‘›‡–ƒ•”‡ˆ‡””‡†—†‡”…Žƒ—•‡ȋš‹Ȍ‘ˆ‡…–‹‘ͷ͸ȋʹȌǤ
ʹ͵Ǥ ••‹•–ƒ…‡‹–Š‡ˆ‘”‘ˆƒ•—„•‹†›‘”‰”ƒ–‘”…ƒ•Š‹…‡–‹˜‡‘”†—–›†”ƒ™„ƒ… 

‘” ™ƒ‹˜‡” ‘” …‘…‡••‹‘ ‘” ”‡‹„—”•‡‡– ȋ„› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†Ȍ „›
–Š‡ ‡–”ƒŽ
‘˜‡”‡– ‘” ƒ –ƒ–‡
‘˜‡”‡– ‘” ƒ›ƒ—–Š‘”‹–›‘”„‘†›‘”
ƒ‰‡…› ‹ …ƒ•Š ‘” ‹† –‘ –Š‡ ƒ••‡••‡‡ ‘–Š‡” –Šƒ –Š‡ •—„•‹†› ‘” ‰”ƒ– ‘”
”‡‹„—”•‡‡–™Š‹…Š‹•–ƒ‡‹–‘ƒ……‘—– ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆ–Š‡ƒ…–—ƒŽ…‘•–
‘ˆ–Š‡ƒ••‡–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ ’”‘˜‹•‹‘•‘ˆš’Žƒƒ–‹‘ͳͲ–‘…Žƒ—•‡ȋͳȌ‘ˆ
•‡…–‹‘Ͷ͵Ǥ

TOTAL INCOME [SECTION 2(45)]

‘–ƒŽ ‹…‘‡ ‹• …‘’—–‡† —†‡” –Š‡ ͷ Š‡ƒ†• ‘ˆ ‹…‘‡Ǥ …‘‡ …‘’—–‡† —†‡” ‡ƒ…Š Š‡ƒ† ‘ˆ ‹…‘‡ ‹•
ƒ‰‰”‡‰ƒ–‡† ƒ† –Š‡ ƒ‰‰”‡‰ƒ–‡ ‹…‘‡ ‹• …ƒŽŽ‡† ƒ• –Š‡
”‘•• ‘–ƒŽ …‘‡ǡ …‡”–ƒ‹ †‡†—…–‹‘• ƒ”‡ ƒŽŽ‘™‡†
—†‡”Šƒ’–‡”ƒ†–Š‡„ƒŽƒ…‡‹…‘‡–ƒšƒ„Ž‡ƒˆ–‡”†‡†—…–‹‘•‹•…ƒŽŽ‡†ƒ•‘–ƒŽ…‘‡Ǥ
 36 Lesson 2 Ȉ EP-TL

•–—†›‘ˆ•‘‡‘ˆ–Š‡„”‘ƒ†’”‹…‹’Ž‡•‰‹˜‡„‡Ž‘™™‹ŽŽŠ‡Ž’–‘—†‡”•–ƒ†–Š‡…‘…‡’–‘ˆ‹…‘‡Ǥ
1. Cash or kind
 …‘‡ƒ›„‡”‡…‡‹˜‡†‹…ƒ•Š‘”‹†ǤŠ‡–Š‡‹…‘‡‹•”‡…‡‹˜‡†‹‹†ǡ‹–•˜ƒŽ—ƒ–‹‘™‹ŽŽ„‡ƒ†‡ ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡”—Ž‡•’”‡•…”‹„‡†‹–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡͳͻ͸ʹǤ
2. Receipt basis/ Accrual basis
 …‘‡ƒ”‹•‡•‡‹–Š‡”‘”‡…‡‹’–„ƒ•‹•‘”‘ƒ……”—ƒŽ„ƒ•‹•Ǥ–ƒ›ƒ……”—‡–‘ƒ–ƒš’ƒ›‡”™‹–Š‘—–‹–•ƒ…–—ƒŽ”‡…‡‹’–Ǥ
Š‡ ‹…‘‡ ‹ •‘‡ …ƒ•‡• ‹• †‡‡‡† –‘ ƒ……”—‡ ‘” ƒ”‹•‡ –‘ ƒ ’‡”•‘ ™‹–Š‘—– ‹–• ƒ…–—ƒŽ ƒ……”—ƒŽ ‘” ”‡…‡‹’–Ǥ
…‘‡ƒ……”—‡•™Š‡”‡–Š‡”‹‰Š––‘”‡…‡‹˜‡ƒ”‹•‡•Ǥ
3. Legal or illegal source
 Š‡ ‹…‘‡Ǧ–ƒš Žƒ™ †‘‡• ‘– ƒ‡ ƒ› †‹•–‹…–‹‘ „‡–™‡‡ ‹…‘‡ ƒ……”—‡† ‘” ƒ”‹•‡ ˆ”‘ ƒ Ž‡‰ƒŽ •‘—”…‡
ƒ†‹…‘‡–ƒ‹–‡†™‹–Š‹ŽŽ‡‰ƒŽ‹–›ǤCIT ˜ǤPiara Singh ȋͳͻͺͲȌ͵ƒšƒ͸͹ǡ–Š‡—’”‡‡‘—”– Šƒ•Š‡Ž†–Šƒ–‹ˆ
•—‰‰Ž‹‰ƒ…–‹˜‹–›…ƒ„‡”‡‰ƒ”†‡†ƒ•ƒ„—•‹‡••ǡ–Š‡…‘ϐ‹•…ƒ–‹‘‘ˆ…—””‡…›‘–‡•„›…—•–‘•ƒ—–Š‘”‹–‹‡•
‹• ƒ Ž‘•• ™Š‹…Š •’”‹‰• †‹”‡…–Ž› ˆ”‘ –Š‡ …ƒ””›‹‰ ‘ ‘ˆ –Š‡ „—•‹‡•• ƒ† ‹•ǡ –Š‡”‡ˆ‘”‡ǡ’‡”‹••‹„Ž‡ƒ•ƒ
†‡†—…–‹‘Ǥ
4. Temporary/Permanent
 Š‡”‡ ‹• ‘ †‹ˆˆ‡”‡…‡ „‡–™‡‡ –‡’‘”ƒ”› ƒ† ’‡”ƒ‡– ‹…‘‡ —†‡” –Š‡…–Ǥ ˜‡ –‡’‘”ƒ”›‹…‘‡
‹•–ƒšƒ„Ž‡—†‡”–Š‡…‘‡ƒš…–Ǥ
5. Lumpsum / Instalments
 …‘‡™Š‡–Š‡” ”‡…‡‹˜‡†‹ Ž—’ •—‘” ‹ ‹•–ƒŽŽ‡–‹• Ž‹ƒ„Ž‡–‘ –ƒšǤ ‘”‡šƒ’Ž‡ǣ ””‡ƒ”•‘ˆ •ƒŽƒ”› ‘”
„‘—•”‡…‡‹˜‡†‹Ž—’•—‹•‹…‘‡ƒ†…Šƒ”‰‡†–‘–ƒšƒ••ƒŽƒ”›Ǥ
6. Gifts
 ‘”ƒŽŽ›ǡ‰‹ˆ–•…‘•–‹–—–‡ƒ…ƒ’‹–ƒŽ”‡…‡‹’–‹–Š‡Šƒ†•‘ˆ–Š‡ ”‡…‹’‹‡–Ǥ‘™‡˜‡”ǡ…‡”–ƒ‹‰‹ˆ–•ƒ”‡ „”‘—‰Š–
™‹–Š‹ –Š‡ ’—”˜‹‡™ ‘ˆ ‹…‘‡Ǧ–ƒšǡ ˆ‘” ‡šƒ’Ž‡ǡ ”‡…‡‹’– ‘ˆ ’”‘’‡”–› ™‹–Š‘—– …‘•‹†‡”ƒ–‹‘ ‹• „”‘—‰Š– –‘
–ƒš —†‡” •‡…–‹‘ ͷ͸ȋʹȌȋšȌǤ
‹ˆ–• ‘ˆ ’‡”•‘ƒŽ ƒ–—”‡ †‘ ‘– …‘•–‹–—–‡ ‹…‘‡ •—„Œ‡…– –‘ ƒš‹— ‘ˆ •Ǥ
ͷͲǡͲͲͲ ”‡…‡‹˜‡† ‹ …ƒ•ŠǤ Š‡ ”‡…‹’‹‡– ‘ˆ ‰‹ˆ–• Ž‹‡ „‹”–Š†ƒ›ǡ ƒ””‹ƒ‰‡ ‰‹ˆ–•ǡ ‡–…Ǥ‹• ‘–Ž‹ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš
ƒ•”‡…‡‹˜‡†‹‹†Š‘™‡˜‡”ƒ•’‡”–Š‡ ‹ƒ…‡…–ǡʹͲͲͻ‰‹ˆ–•‹‹†Šƒ˜‹‰ ˆƒ‹”˜ƒŽ—‡—’–‘•ǤͷͲǡͲͲͲƒ”‡
‘–Ž‹ƒ„Ž‡–‘–ƒš„—–Šƒ˜‹‰ˆƒ‹”˜ƒŽ—‡‘ˆ‘”‡–Šƒ•ǤͷͲǡͲͲͲ‹•™Š‘ŽŽ› –ƒšƒ„Ž‡Ǥ
7. Revenue or Capital receipt
 …‘‡Ǧ–ƒšǡƒ•–Š‡ƒ‡‹’Ž‹‡•ǡ‹•ƒ–ƒš‘‹…‘‡ƒ†‘–ƒ–ƒš‘‡˜‡”›‹–‡‘ˆ‘‡›”‡…‡‹˜‡†ǤŠ‡”‡ˆ‘”‡ǡ
—Ž‡••–Š‡”‡…‡‹’–‹“—‡•–‹‘…‘•–‹–—–‡•‹…‘‡ƒ•†‹•–‹‰—‹•Š‡†ˆ”‘…ƒ’‹–ƒŽǡ‹–…ƒ‘– „‡…Šƒ”‰‡†–‘–ƒšǤ ‘”
–Š‹•’—”’‘•‡ǡ‹…‘‡•Š‘—Ž†„‡†‹•–‹‰—‹•Š‡†ˆ”‘…ƒ’‹–ƒŽ™Š‹…Š‰‹˜‡•”‹•‡–‘ ‹…‘‡Ǥ‘™‡˜‡”ǡ•‘‡…ƒ’‹–ƒŽ
”‡…‡‹’–•Šƒ˜‡„‡‡•’‡…‹ϐ‹…ƒŽŽ›‹…Ž—†‡†‹–Š‡†‡ϐ‹‹–‹‘‘ˆ‹…‘‡Ǥ

CAPITAL AND REVENUE RECEIPTS

Š‡…–…‘–‡’Žƒ–‡•ƒŽ‡˜›‘ˆ–ƒš‘‹…‘‡ƒ†‘–‘…ƒ’‹–ƒŽƒ†Š‡…‡‹–‹•˜‡”›‡••‡–‹ƒŽ–‘†‹•–‹‰—‹•Š„‡–™‡‡
…ƒ’‹–ƒŽƒ†”‡˜‡—‡”‡…‡‹’–•Ǥƒ’‹–ƒŽ”‡…‡‹’–•…ƒ‘–„‡–ƒš‡†ǡ—Ž‡••–Š‡›ˆƒŽŽ™‹–Š‹–Š‡•…‘’‡‘ˆ–Š‡†‡ϐ‹‹–‹‘‘ˆ
Dz‹…‘‡dzƒ†•‘–Š‡†‹•–‹…–‹‘„‡–™‡‡…ƒ’‹–ƒŽƒ†”‡˜‡—‡”‡…‡‹’–•‹•ƒ–‡”‹ƒŽˆ‘”–ƒš’—”’‘•‡•Ǥ
‡”–ƒ‹ …ƒ’‹–ƒŽ ”‡…‡‹’–• ™Š‹…Š Šƒ˜‡ „‡‡ •’‡…‹ϐ‹…ƒŽŽ› ‹…Ž—†‡† ‹ –Š‡ †‡ϐ‹‹–‹‘ ‘ˆ ‹…‘‡ ƒ”‡ …‘’‡•ƒ–‹‘ ˆ‘”
‘†‹ϐ‹…ƒ–‹‘‘”–‡”‹ƒ–‹‘‘ˆ•‡”˜‹…‡•ǡ‹…‘‡„›™ƒ›‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•‡–…Ǥ
–‹•‘–’‘••‹„Ž‡–‘Žƒ›†‘™ƒ›•‹‰Ž‡–‡•–ƒ•‹ˆƒŽŽ‹„Ž‡‘”ƒ›•‹‰Ž‡…”‹–‡”‹‘ƒ•†‡…‹•‹˜‡ǡϐ‹ƒŽƒ†—‹˜‡”•ƒŽ‹
ƒ’’Ž‹…ƒ–‹‘–‘†‡–‡”‹‡™Š‡–Š‡”ƒ’ƒ”–‹…—Žƒ””‡…‡‹’–‹•…ƒ’‹–ƒŽ‘””‡˜‡—‡‹ƒ–—”‡Ǥ‡…‡ǡ–Š‡…ƒ’‹–ƒŽ‘””‡˜‡—‡
ƒ–—”‡‘ˆ–Š‡”‡…‡‹’–—•–„‡†‡–‡”‹‡†™‹–Š”‡ˆ‡”‡…‡–‘–Š‡ˆƒ…–•ƒ†…‹”…—•–ƒ…‡•‘ˆ‡ƒ…Š…ƒ•‡Ǥ
Criteria for determining whether a receipt is capital or revenue in nature:
ƒ‘—–”‡ˆ‡”ƒ„Ž‡–‘ϐ‹š‡†…ƒ’‹–ƒŽ‹•ƒ…ƒ’‹–ƒŽ”‡…‡‹’–™Š‡”‡ƒ•ƒ”‡…‡‹’–”‡ˆ‡”ƒ„Ž‡–‘…‹”…—Žƒ–‹‰…ƒ’‹–ƒŽ™‘—Ž†
„‡ƒ ”‡˜‡—‡ ”‡…‡‹’–Ǥ Š‹Ž‡ –Š‡ Žƒ––‡” ‹• …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒšǡ –Š‡ ˆ‘”‡” ‹• ‘– •—„Œ‡…– –‘ ‹…‘‡Ǧ–ƒš —Ž‡••
‘–Š‡”™‹•‡‡š’”‡••Ž›’”‘˜‹†‡†Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 37

TYPE OF CAPITAL

Fixed capital Circulating Capital

‹š‡† …ƒ’‹–ƒŽ ‹• –Šƒ– ™Š‹…Š ‹• ‘– ‹”…—Žƒ–‹‰ …ƒ’‹–ƒŽ ‹• –Šƒ– ’ƒ”– ‘ˆ –Š‡ …ƒ’‹–ƒŽ ™Š‹…Š ‹• –—”‡† ‘˜‡” ‹ –Š‡
‹˜‘Ž˜‡† †‹”‡…–Ž› ‹ –Š‡ ’”‘…‡•• ‘ˆ „—•‹‡•• ƒ† ™Š‹…Š —Ž–‹ƒ–‡Ž› ”‡•—Ž–• ‹ ’”‘ϐ‹– ‘” Ž‘••Ǥ ‘” ‹•–ƒ…‡ǡ –Š‡
„—•‹‡•• „—– ”‡ƒ‹• —ƒˆˆ‡…–‡† „› ’”‘…‡‡†• ‘ˆ •ƒŽ‡ ‘ˆ •–‘…Ǧ‹Ǧ–”ƒ†‡ ‹• ƒ ”‡˜‡—‡ ”‡…‡‹’– ™Š‹Ž‡ –Š‡ •ƒŽ‡
–Š‡’”‘…‡••Ǥ ’”‘…‡‡†•‘ˆ„—‹Ž†‹‰ǡƒ…Š‹‡”›‘”’Žƒ–™‹ŽŽ„‡…ƒ’‹–ƒŽ”‡…‡‹’–Ǥ

Š‡…‘‡Ǧ–ƒš…–†‘‡•‘–†‡ϐ‹‡–Š‡–‡”Dzƒ’‹–ƒŽ”‡…‡‹’–dzƬDz‡˜‡—‡”‡…‡‹’–dzǤŽ•‘ǡ‹–Šƒ•‘–Žƒ‹††‘™–Š‡
…”‹–‡”‹‘ˆ‘”†‹ˆˆ‡”‡–‹ƒ–‹‰–Š‡…ƒ’‹–ƒŽƒ†”‡˜‡—‡”‡…‡‹’–Ǥ‡–ǡ‹–Šƒ•‡š‡’–‡†…‡”–ƒ‹…ƒ’‹–ƒŽ”‡…‡‹’–•ˆ”‘–ƒšƒ–‹‘
™Š‹Ž‡…‡”–ƒ‹…ƒ’‹–ƒŽ”‡…‡‹’–•Šƒ˜‡„‡‡–ƒ‡‹–‘ƒ„‹–‘ˆ…ƒ’‹–ƒŽ”‡…‡‹’–•…Šƒ”‰‡ƒ„Ž‡ƒ•…ƒ’‹–ƒŽ‰ƒ‹•Ǥ
Š‡–Š‡”ƒ’ƒ”–‹…—Žƒ””‡…‡‹’–‹•‘ˆ–Š‡ƒ–—”‡‘ˆ‹…‘‡‘”…ƒ’‹–ƒŽ‹•‡š’Žƒ‹‡†„‡Ž‘™„›–Š‡ˆ‘ŽŽ‘™‹‰‡šƒ’Ž‡•Ǥ Š‡
ˆ‘ŽŽ‘™‹‰–‡•–…ƒ„‡ƒ’’Ž‹‡†–‘†‡–‡”‹‡–Š‡ƒ–—”‡‘ˆ’ƒ”–‹…—Žƒ””‡…‡‹’–Ǥ

Base Explanation Example

Type of capital Š‡ ˜‡”› •ƒ‡ –Š‹‰ ƒ›  ƒ‘—– ”‡…‡‹˜‡† ‘ ƒ……‘—– ‘ˆ •ƒŽ‡ ‘ˆ –”ƒ†‹‰ ‰‘‘†• ‘”
will depend upon „‡ ϐ‹š‡† …ƒ’‹–ƒŽ ‹ –Š‡ ”‡…‡‹’–• ‹ ”‡•’‡…– ‘ˆ …‹”…—Žƒ–‹‰ …ƒ’‹–ƒŽ ‘” ‘ˆ ϐŽ‘™‹‰
the nature of Šƒ†• ‘ˆ ‘‡ „—•‹‡•• „—– …ƒ’‹–ƒŽ‹•”‡˜‡—‡”‡…‡‹’–ǡˆ‘”‡šƒ’Ž‡•ƒŽ‡‘ˆƒ‘–‘”…ƒ” „›
business …‹”…—Žƒ–‹‰ …ƒ’‹–ƒŽ ‹ –Š‡ ƒ†‡ƒŽ‡”Ǥ–Š‡‘–Š‡”Šƒ†ƒ”‡…‡‹’–‘ƒ……‘—–‘ˆ•ƒŽ‡‘ˆ ϐ‹š‡†
Šƒ†•‘ˆƒ‘–Š‡”Ǥ ƒ••‡–• ‹• ƒ …ƒ’‹–ƒŽ ”‡…‡‹’–ǡ ˆ‘” ‡šƒ’Ž‡ǡ ƒ‘—–”‡…‡‹˜‡†‘
•ƒŽ‡‘ˆƒ‘–‘”…ƒ”„›ƒ’‡”•‘™Š‘‹•‘–ƒ …ƒ”†‡ƒŽ‡”Ǥ

Nature of receipt Š‡–Š‡” ƒ ’ƒ”–‹…—Žƒ”
also depends upon ”‡…‡‹’– ‹• …ƒ’‹–ƒŽ ‘”
the reference to ”‡˜‡—‡ ‹ ƒ–—”‡ —•– „‡
the recipient †‡–‡”‹‡† ™‹–Š ”‡ˆ‡”‡…‡
–‘ –Š‡ ”‡…‹’‹‡– ™Š‘ ‹•
•‘—‰Š– –‘ „‡ –ƒš‡† ƒ• –Š‡
ƒ••‡••‡‡Ǥ ‘” –ƒš ’—”’‘•‡•
–Š‡ …ƒ’‹–ƒŽ ‘” ”‡˜‡—‡
…Šƒ”ƒ…–‡” ‘ˆ –Š‡ ”‡…‡‹’–
—•– „‡ †‡–‡”‹‡† ‘
–Š‡ „ƒ•‹• ‘ˆ –Š‡ ƒ–—”‡ ‘ˆ
–Š‡ –”ƒ†‡ ‹ –Š‡ …‘—”•‡ ‘ˆ
™Š‹…Š‘”‹…‘‡…–‹‘™‹–Š
™Š‹…Š‹– ƒ”‹•‡•Ǥ
Ȉ Š‡ ”‡‹„—”•‡‡– ‘ˆ …ƒ’‹–ƒŽ ‘—–Žƒ› ‹• ƒ …ƒ’‹–ƒŽ ”‡…‡‹’–
‡˜‡‹ˆ–Š‡–‘–ƒŽƒ‘—–”‡…‡‹˜‡†‡š…‡‡†•–Š‡…‘•–‘ˆ–Š‡
‘—–Žƒ›‹–•‡ŽˆǤ
Ȉ ‘’‡•ƒ–‹‘”‡…‡‹˜‡†ˆ‘”–Š‡Ž‘••‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‹•ƒ
”‡…‡‹’– ‘ˆ ƒ …ƒ’‹–ƒŽ ƒ–—”‡ ™Š‡”‡ƒ• –Š‡ …‘’‡•ƒ–‹‘
”‡…‡‹˜‡† ˆ‘” †ƒƒ‰‡ –‘ ‘” Ž‘•• ‘ˆ ƒ –”ƒ†‹‰ ƒ••‡– ‹• ƒ
”‡˜‡—‡”‡…‡‹’–Ǥ
Ȉ  …ƒ’‹–ƒŽ ƒ••‡– ‹• …‘˜‡”–‡† ‹–‘ ‹…‘‡ ƒ† –Š‡ ’”‹…‡
”‡ƒŽ‹œ‡†‘‹–••ƒŽ‡–ƒ‡•ˆ‘”‘ˆ–Š‡’‡”‹‘†‹…’ƒ›‡–•‘ˆ
ƒ”‡˜‡—‡ƒ–—”‡Ǥ
Ȉ Š‡”‡ƒ’‡”•‘•‡ŽŽ•Š‹•’”‘’‡”–‹‡•ƒ†–Š‡•ƒŽ‡’”‹…‡‹•
’ƒ›ƒ„Ž‡–‘Š‹„›–Š‡’—”…Šƒ•‡”‹–Š‡ˆ‘”‘ˆƒ—‹–‹‡•‘ˆ
ƒϐ‹š‡†•—•‘Ž‘‰ƒ•–Š‡•‡ŽŽ‡”‹•ƒŽ‹˜‡‘”—–‹ŽŠ‡ƒ––ƒ‹•
ƒ’ƒ”–‹…—Žƒ”ƒ‰‡Ǥ

Capital and ”‘ϐ‹–• ƒ† ‰ƒ‹• ƒ”‹•‹‰ Ȉ ”‘ϐ‹–•‘’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•„›ƒ•Šƒ”‡„”‘‡”

Revenue Receipts ˆ”‘ –Š‡ ˜ƒ”‹‘—• ‘Š‹•‘™ƒ……‘—–Ǣ
in Relation To –”ƒ•ƒ…–‹‘• ™Š‹…Š ƒ”‡ Ȉ ”‘ϐ‹–• ƒ”‹•‹‰ ˆ”‘ †‡ƒŽ‹‰• ‹ ˆ‘”‡‹‰ ‡š…Šƒ‰‡ „› ƒ
Business Activities ‡–‡”‡† ‹–‘ ‹ –Š‡ „ƒ‡”‘”‘–Š‡”ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘•Ǣ
‘”†‹ƒ”›  …‘—”•‡  ‘ˆ  –Š‡
„—•‹‡•• ‘ˆ –Š‡ –ƒš ’ƒ›‡”•
‘” –Š‘•‡ ™Š‹…Š ƒ”‡
‹…‹†‡–ƒŽ –‘ ‘” …Ž‘•‡Ž›
ƒ••‘…‹ƒ–‡† ™‹–Š Š‹•
„—•‹‡••™‘—Ž†„‡”‡˜‡—‡
”‡…‡‹’–• …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒšǤ
—–‡˜‡‹–Š‡•‡…ƒ•‡•–Š‡
”‡…‡‹’–•ƒ›„‡‘ˆƒ…ƒ’‹–ƒŽ
ƒ–—”‡ ‹ …‡”–ƒ‹
…‹”…—•–ƒ…‡•Ǥ
Ȉ …‘‡ˆ”‘Ž‡––‹‰‘—–„—‹Ž†‹‰•‘™‡†„›ƒ…‘’ƒ›–‘
‹–•‡’Ž‘›‡‡•‡–…Ǥ
‘” ‹•–ƒ…‡ǡ ’”‘ϐ‹– ‘ •ƒŽ‡ ‘ˆ •Šƒ”‡• ƒ† •‡…—”‹–‹‡• Š‡Ž†„›
ƒ „ƒ ƒ• ‹˜‡•–‡–• ™‘—Ž† „‡ ‘ˆ ƒ …ƒ’‹–ƒŽ ƒ–—”‡Ǥ Š‡”‡
’”‘ϐ‹–• ƒ”‹•‡ ˆ”‘ –”ƒ•ƒ…–‹‘• ™Š‹…Š ƒ”‡ ‘—–•‹†‡ –Š‡
‘”ƒŽ†‡ƒŽ‹‰‘ˆ–Š‡ƒ••‡••‡‡ǡƒŽ–Š‘—‰Š…‘‡…–‡†™‹–ŠŠ‹•
„—•‹‡••ǡ –Š‡ –ƒšƒ„Ž‡ ƒ–—”‡ ‘” ‘–Š‡”™‹•‡ ‘ˆ –Š‡ ’”‘ϐ‹–•
™‘—Ž† †‡’‡† —’‘ –Š‡ ˆƒ…– ™Š‡–Š‡” ‘” ‘– –Š‡
–”ƒ•ƒ…–‹‘ȋ•Ȍ‹“—‡•–‹‘…‘•–‹–—–‡ȋ•Ȍ–”ƒ†‹‰ƒ…–‹˜‹–›Ǥ
 38 Lesson 2 Ȉ EP-TL

Factors that do not determine the nature or character of receipt

Š‡…ƒ’‹–ƒŽ‘””‡˜‡—‡ƒ–—”‡‘ˆƒ”‡…‡‹’–—•–„‡†‡–‡”‹‡†™‹–Š”‡ˆ‡”‡…‡–‘‡ƒ…Š”‡…‡‹’–‘–Š‡„ƒ•‹•‘ˆ –Š‡
ˆƒ…–•ƒ†…‹”…—•–ƒ…‡•‘ˆ‡ƒ…Š…ƒ•‡ǤŠ‡—Ž–‹ƒ–‡…‘…Ž—•‹‘ƒ•–‘–Š‡…ƒ’‹–ƒŽ‘””‡˜‡—‡…Šƒ”ƒ…–‡”‘ˆ –Š‡ ”‡…‡‹’–
™‘—Ž† „‡ ‘ˆ –Š‡ ‹‰Š ‘—”– ‘” –Š‡ —’”‡‡ ‘—”– ƒ† –Š‡ ’”‹…‹’Ž‡• Žƒ‹† †‘™ „› –Š‡ ‘—”–Ǥ ‘™‡˜‡”ǡ ™Š‹Ž‡
†‡–‡”‹‹‰–Š‡“—‡•–‹‘™Š‡–Š‡”ƒ’ƒ”–‹…—Žƒ””‡…‡‹’–‹•…ƒ’‹–ƒŽ‘””‡˜‡—‡‹ƒ–—”‡ǡ…ƒ”‡—•–„‡–ƒ‡ –‘‡•—”‡
–Šƒ––Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡‘––ƒ‡ƒ•–Š‡„ƒ•‹•ˆ‘”†‡–‡”‹ƒ–‹‘ƒŽ–Š‘—‰Š–Š‡•‡ˆƒ…–‘”•ƒ›ǡ–‘ƒ…‡”–ƒ‹ ‡š–‡–ǡ„‡
Š‡Ž’ˆ—Ž–‘ƒ””‹˜‡ƒ––Š‡…‘…Ž—•‹‘Ǥ

Factors Explanation

Character and source of Š‡ƒ–—”‡‘ˆ”‡…‡‹’–•Š‘—Ž†„‡†‡…‹†‡†‡–‹”‡Ž›‘–Š‡„ƒ•‹•‘ˆ‹–•…Šƒ”ƒ…–‡”‹–Š‡

income Šƒ†•‘ˆ–Š‡”‡…‹’‹‡–ǡ–Š‡•‘—”…‡ˆ”‘™Š‹…Š–Š‡’ƒ›‡–Šƒ•„‡‡”‡…‡‹˜‡†„‡‹‰
‹ƒ–‡”‹ƒŽˆ‘”–Š‡’—”’‘•‡Ǥ
Š‡”‡ ƒ› „‡ …ƒ•‡• ™Š‡”‡ –Š‡ ’ƒ›‡” ƒ‡• –Š‡ ’ƒ›‡– ‘—– ‘ˆ …ƒ’‹–ƒŽ ™Š‹Ž‡ –Š‡
”‡…‹’‹‡–‰‡–•‹–ƒ•‹…‘‡ǤŠ‹•ƒ›Šƒ’’‡‹ƒ…ƒ•‡™Š‡”‡–Š‡”‡‹•ƒ„—•‹‡••ƒ
™Š‘†‡ƒŽ•‹’Žƒ–ƒ†ƒ…Š‹‡”›Ǣ™Š‹Ž‡–Š‡’—”…Šƒ•‡”‘ˆ–Š‡ƒ…Š‹‡”›™‘—Ž†’ƒ›
–Š‡’”‹…‡‘—–‘ˆŠ‹•…ƒ’‹–ƒŽǡ–Š‡•‡ŽŽ‡”™‘—Ž†‰‡–‹–ƒ•‹…‘‡ˆ”‘„—•‹‡••ǤŠ‡”‡ˆ‘”‡ǡ
–Š‡–ƒšƒ„‹Ž‹–›‘ˆ–Š‡”‡…‡‹’–†‘‡•‘–†‡’‡†—’‘–Š‡…Šƒ”ƒ…–‡”‘ˆ’ƒ›‡–‹–Š‡
Šƒ†•‘ˆ–Š‡’ƒ›‡”Ǥ

Application of Income Š‡ ƒ’’Ž‹…ƒ–‹‘ ‘ˆ –Š‡ ‹…‘‡ ƒˆ–‡” ‹–• ”‡…‡‹’– „› –Š‡ ”‡…‹’‹‡– ‹• ‹ƒ–‡”‹ƒŽ ˆ‘”
’—”’‘•‡•‘ˆ–ƒšƒ„‹Ž‹–›Ǥ

Allowance or
disallowance of the
amount to the payer
Treatment given in the
books
Š‡’ƒ›‡–ƒ›”‡’”‡•‡–‡š’‡†‹–—”‡‹–Š‡Šƒ†•‘ˆ–Š‡’ƒ›‡”ƒ†‹…‡”–ƒ‹
…ƒ•‡• ƒ› „‡ †‹•ƒŽŽ‘™‡† ‹ …‘’—–‹‰ –Š‡ –ƒšƒ„Ž‡ ‹…‘‡ ‘ˆ –Š‡ ’ƒ›‡”Ǥ —– –Š‡
†‹•ƒŽŽ‘™ƒ…‡‹–Š‡’ƒ›‡”ǯ•Šƒ†•™‘—Ž†‘–‹ƒ›™ƒ›ƒˆˆ‡…––Š‡–ƒšƒ„‹Ž‹–›‘ˆ–Š‡
‡–‹”‡ƒ‘—–‘ˆ”‡—‡”ƒ–‹‘‹–Š‡‡’Ž‘›‡‡•‘”†‹”‡…–‘”•Šƒ†•ƒŽ–Š‘—‰Š–Š‡”‡
ƒ›„‡†‘—„Ž‡–ƒšƒ–‹‘‘ˆ–Š‡•ƒ‡ƒ‘—–‹–™‘Šƒ†•ˆ‘”–Š‡•ƒ‡’‡”‹‘†ǤŠ—•ǡ
–Š‡ƒŽŽ‘™ƒ…‡‘”†‹•ƒŽŽ‘™ƒ…‡‘ˆ–Š‡ƒ‘—––‘–Š‡’ƒ›‡”‹•‹ƒ–‡”‹ƒŽˆ‘”–ƒš‹‰–Š‡
”‡…‹’‹‡–Ǥ
Š‡ƒ‡„›™Š‹…Š–Š‡’ƒ›‡–‹•…ƒŽŽ‡†„›–Š‡’ƒ”–‹‡•…‘…‡”‡†ƒ†–Š‡–”‡ƒ–‡–
‰‹˜‡–‘‹–‹–Š‡„‘‘•‘ˆƒ……‘—–•‘ˆ–Š‡’ƒ”–‹‡•™‘—Ž†ƒŽ•‘„‡‹””‡Ž‡˜ƒ–Ǥ

‘” ‹•–ƒ…‡ǡ ‡˜‡”› ‹–‡ ‘ˆ ‹…‘‡ ˆ”‘ ‡’Ž‘›‡– ‹• –ƒšƒ„Ž‡ ƒ• •ƒŽƒ”› ‹…‘‡
™Š‡–Š‡”‹–‹•…ƒŽŽ‡†•ƒŽƒ”›ǡ™ƒ‰‡•ǡ„‘—•ǡ’‡•‹‘ǡƒ†ƒ—‹–›‘”„›ƒ›‘–Š‡”ƒ‡Ǥ
‘–Š‡”™‘”†•ǡ‹–‹•‘Ž›–Š‡”‡ƒŽ…Šƒ”ƒ…–‡”‘ˆ–Š‡”‡…‡‹’–ƒ†‘–™Šƒ––Š‡’ƒ”–‹‡•
…ƒŽŽ‹––Šƒ–™‘—Ž††‡–‡”‹‡‹–•–ƒšƒ„‹Ž‹–›Ǥ

Magnitude and method Š‡“—ƒ–—‘ˆ–Š‡’ƒ›‡–ǡ™Š‡–Š‡”‹–‹•’ƒ‹†‹‹•–ƒŽŽ‡–•‘”‹Ž—’•— ƒ†

of payment ƒŽ•‘ ™Š‡–Š‡” ‹– ‹• ’ƒ‹† ƒ– ”‡‰—Žƒ” ‹–‡”˜ƒŽ• ‘ˆ –‹‡ ‘” ‘–Š‡”™‹•‡ ƒ† ‡˜‡ –Š‡
ƒ‰‹–—†‡‘ˆ–Š‡’ƒ›‡–ƒ”‡‘––Š‡ˆƒ…–‘”•–Šƒ–†‡–‡”‹‡–Š‡…ƒ’‹–ƒŽ‘” ”‡˜‡—‡
…Šƒ”ƒ…–‡”‘ˆ–Š‡”‡…‡‹’–ˆ‘”–ƒš’—”’‘•‡Ǥ
Basis for measurement Š‡ „ƒ•‹•ˆ‘”‡ƒ•—”‡‡–‘ˆ–Š‡”‡…‡‹’–ȋƒ•’‡…‹ϐ‹‡†’‡”…‡–ƒ‰‡‘ˆ–Š‡‡•–‹ƒ–‡†
of the receipt ’”‘ϐ‹––ƒ‡ƒ•–Š‡„ƒ•‹•ˆ‘”‡ƒ•—”‹‰†ƒƒ‰‡•Ȍ•Š‘—Ž†‘–„‡–ƒ‡ƒ•–Š‡†‡…‹†‹‰
ˆƒ…–‘”ˆ‘”†‡–‡”‹‹‰–Š‡…ƒ’‹–ƒŽ‘””‡˜‡—‡…Šƒ”ƒ…–‡”‘ˆ–Š‡ ”‡…‡‹’–Ǥ

Ways or devices Š‡˜ƒ”‹‘—•†‡˜‹…‡•”‡•‘”–‡†–‘„›–ƒš’ƒ›‡”•‹ƒ””ƒ‰‹‰–Š‡‹”ϐ‹ƒ…‹ƒŽƒˆˆƒ‹”•†‘

resorted by payer ‘–ƒŽ•‘…‘…Ž—•‹˜‡Ž›‡•–ƒ„Ž‹•Š–Š‡ƒ–—”‡‘ˆ–Š‡”‡…‡‹’–„‡…ƒ—•‡ƒ–ƒš’ƒ›‡” ‹•Ž‡‰ƒŽŽ›
‡–‹–Ž‡†–‘ƒ””ƒ‰‡Š‹•ƒˆˆƒ‹”•‹•—…Šƒ™ƒ›ƒ•–‘”‡†—…‡Š‹•–ƒš„—”†‡–‘–Š‡‹‹—Ǥ
 –Š‡Ž‹‰Š– ‘ˆ –Š‡ƒˆ‘”‡•ƒ‹† ’”‹…‹’Ž‡• –Š‡ …ƒ’‹–ƒŽ ‘””‡˜‡—‡ ƒ–—”‡‘ˆ–Š‡”‡…‡‹’–
•Š‘—Ž†„‡ϐ‹”•–†‡–‡”‹‡†„‡ˆ‘”‡’”‘…‡‡†‹‰–‘…‘’—–‡–Š‡–ƒšƒ„Ž‡‹…‘‡Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 39

Illustration 1:
State whether the following are capital or revenue receipts/expenses and give your reasons:
ͳǤ  Ƭ ‘Ǥ ”‡…‡‹˜‡† •Ǥ ͷǡͲͲǡͲͲͲ ƒ• …‘’‡•ƒ–‹‘ ˆ”‘  Ƭ ‘Ǥ ˆ‘” ’”‡ƒ–—”‡ –‡”‹ƒ–‹‘ ‘ˆ
…‘–”ƒ…–‘ˆƒ‰‡…›Ǥ
ʹǤ ƒŽ‡•Ǧ–ƒš…‘ŽŽ‡…–‡†ˆ”‘–Š‡„—›‡”‘ˆ‰‘‘†•Ǥ
͵Ǥ ‘’ƒ›–†Ǥ‹•–‡ƒ†‘ˆ”‡…‡‹˜‹‰”‘›ƒŽ–››‡ƒ”„››‡ƒ”ǡ”‡…‡‹˜‡†‹–‹ƒ†˜ƒ…‡‹Ž—’•—Ǥ
ͶǤ ƒ‘—–‘ˆ•ǤͳǡͷͲǡͲͲͲ™ƒ••’‡–„›ƒ…‘’ƒ›ˆ‘”•‡†‹‰‹–•’”‘†—…–‹‘ƒƒ‰‡”ƒ„”‘ƒ†–‘•–—†›
‡™‡–Š‘†•‘ˆ’”‘†—…–‹‘Ǥ
ͷǤ ƒ›‡–‘ˆ•ǤͷͲǡͲͲͲƒ•…‘’‡•ƒ–‹‘ˆ‘”…ƒ…‡ŽŽƒ–‹‘‘ˆƒ…‘–”ƒ…–ˆ‘”–Š‡’—”…Šƒ•‡‘ˆƒ…Š‹‡”›™‹–Š
ƒ˜‹‡™–‘ƒ˜‘‹†ƒ—‡…‡••ƒ”›‡š’‡†‹–—”‡Ǥ
͸Ǥ ‡’Ž‘›‡‡†‹”‡…–‘”‘ˆƒ…‘’ƒ›™ƒ•’ƒ‹†•Ǥ͵ǡͷͲǡͲͲͲƒ•ƒŽ—’•—…‘•‹†‡”ƒ–‹‘ˆ‘”‘–”‡•‹‰‹‰
ˆ”‘–Š‡†‹”‡…–‘”•Š‹’Ǥ
Solution:
ͳǤ ‡…‡‹’–‹•—„•–‹–—–‹‘‘ˆƒ•‘—”…‡‘ˆ‹…‘‡‹•ƒ…ƒ’‹–ƒŽ”‡…‡‹’–ǤŠ‡”‡ˆ‘”‡ǡ–Š‡ƒ‘—–”‡…‡‹˜‡†„›Ƭ
‘Ǥˆ”‘Ƭ‘Ǥˆ‘”’”‡ƒ–—”‡–‡”‹ƒ–‹‘‘ˆƒƒ‰‡…›…‘–”ƒ…–‹•ƒ…ƒ’‹–ƒŽ”‡…‡‹’––Š‘—‰Š–Š‡•ƒ‡
‹•–ƒšƒ„Ž‡—†‡”‡…–‹‘ʹͺȋ‹‹Ȍȋ…ȌǤ
ʹǤ ƒŽ‡•Ǧ–ƒš‹•–Š‡Ž‹ƒ„‹Ž‹–›‘ˆƒ•‡ŽŽ‡”–‘’ƒ›–‘–Š‡
‘˜‡”‡–‘–Š‡•ƒŽ‡‘ˆ‰‘‘†•ƒ†‡„›Š‹ǡ™Š‹…Š‹•
ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘ƒ•”‡˜‡—‡‡š’‡†‹–—”‡Ǥˆƒ›’ƒ”–‘ˆƒŽ‡•Ǧ–ƒš‹•…‘ŽŽ‡…–‡†ˆ”‘–Š‡„—›‡”‘ˆ‰‘‘†•–Šƒ–
ƒ›„‡–”‡ƒ–‡†ƒ•ƒ”‡˜‡—‡”‡…‡‹’–ǤŠ—•–Š‡•ƒŽ‡•Ǧ–ƒš…‘ŽŽ‡…–‡†ˆ”‘–Š‡„—›‡”‘ˆ‰‘‘†•‹•ƒ”‡˜‡—‡”‡…‡‹’–Ǥ
͵Ǥ ‡…‡‹’–‘ˆŽ—’•—”‘›ƒŽ–›‹Ž‹‡—‘ˆˆ—–—”‡”‘›ƒŽ–‹‡•‹•ƒ”‡˜‡—‡”‡…‡‹’–ǡƒ•‹–‹•ƒ‹…‘‡ˆ”‘”‘›ƒŽ–›Ǥ
ͶǤ ‘—– •’‡– „› ƒ …‘’ƒ› ˆ‘” •‡†‹‰ ‹–• ’”‘†—…–‹‘ ƒƒ‰‡” ƒ„”‘ƒ† –‘ •–—†› ‡™ ‡–Š‘†• ‘ˆ
’”‘†—…–‹‘‹•”‡˜‡—‡‡š’‡†‹–—”‡–‘„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘Ǥ‡…ƒ—•‡–Š‡‡™‘™Ž‡†‰‡ƒ†‡š’‘•—”‡
‘ˆ–Šƒ–ƒƒ‰‡”™‹ŽŽƒ••‹•––Š‡…‘’ƒ›‹‹’”‘˜‹‰‹–•‡š‹•–‹‰‡–Š‘†•‘ˆ’”‘†—…–‹‘‡–…Ǥ
ͷǤ Š‹• ‹• ƒ …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ǡ ƒ• ƒ› ‡š’‡†‹–—”‡ ‹…—””‡† „› ƒ ’‡”•‘ –‘ ˆ”‡‡ Š‹•‡Žˆ ˆ”‘ ƒ …ƒ’‹–ƒŽ
Ž‹ƒ„‹Ž‹–› ‹• ƒ …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡Ǥ  –Š‡ ‰‹˜‡ …ƒ•‡ǡ –Š‡ ’ƒ›‡– ‘ˆ •Ǥ ͷͲǡͲͲͲ ˆ‘” …ƒ…‡ŽŽ‹‰ –Š‡ ‘”†‡” ˆ‘”
’—”…Šƒ•‡‘ˆ–Š‡ƒ…Š‹‡”›ǡŠƒ•Š‡Ž’‡†–Š‡ƒ••‡••‡‡–‘„‡…‘‡ˆ”‡‡ˆ”‘ƒ—‡…‡••ƒ”›…ƒ’‹–ƒŽŽ‹ƒ„‹Ž‹–›Ǥ
͸Ǥ Š‡ƒ‘—–‘ˆ•Ǥ͵ǡͷͲǡͲͲͲ”‡…‡‹˜‡†ˆ‘”‘–”‡•‹‰‹‰ˆ”‘–Š‡†‹”‡…–‘”•Š‹’‹•ƒ”‡™ƒ”†”‡…‡‹˜‡†ˆ”‘–Š‡
‡’Ž‘›‡”ǤŠ‡”‡ˆ‘”‡‹–‹•ƒ”‡˜‡—‡”‡…‡‹’–Ǥ

Illustration 2:
Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ”‡˜‡—‡”‡…‡‹’–ǫ
ȋ‹Ȍ ‘’‡•ƒ–‹‘”‡…‡‹˜‡†ˆ‘”–Š‡Ž‘••‘ˆƒ…ƒ’‹–ƒŽƒ••‡–
ȋ‹‹Ȍ ‘’‡•ƒ–‹‘”‡…‡‹˜‡†ˆ‘”†ƒƒ‰‡–‘‘”Ž‘••‘ˆƒ–”ƒ†‹‰ƒ••‡–Ǥ
ȋ‹‹‹Ȍ ”‘ϐ‹–•‘’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•„›ƒ•Šƒ”‡„”‘‡”‘Š‹•‘™ƒ……‘—–Ǥ
ȋ‹˜Ȍ …‘‡ˆ”‘Ž‡––‹‰‘—–„—‹Ž†‹‰•‘™‡†„›ƒ…‘’ƒ›–‘‹–•‡’Ž‘›‡‡•‡–…
Options:
ƒȌ ‹Ž›
„Ȍ ‹ƒ†‹‹„‘–Š
…Ȍ ‹ǡ‹‹ǡƒ†‹‹‹
†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
Answer:ȋƒȌ

CHARGE OF INCOME TAX [SECTION 4]

‡…–‹‘Ͷ‘ˆ–Š‡…–‹•–Š‡…Šƒ”‰‹‰•‡…–‹‘Ǥ–Žƒ›•†‘™–Š‡„ƒ•‹•‘™Š‹…Š–ƒš‹•‹’‘•‡†Ǥ‡…–‹‘Ͷ‘ˆ…‘‡ƒš
…–‹•–Š‡‘•–‡ˆˆ‡…–‹˜‡ƒ†‘’‡”ƒ–‹˜‡‘ˆ–Š‡˜ƒ”‹‘—•’”‘˜‹•‹‘•‹–Š‡…–•‹…‡ǡ‹–‹•„‡…ƒ—•‡‘ˆ–Š‹••‡…–‹‘ƒŽ‘‡
 40 Lesson 2 Ȉ EP-TL

–Šƒ– ƒŽŽ ‘–Š‡” •‡…–‹‘• „‡…‘‡ ‡ˆ‘”…‡ƒ„Ž‡Ǥ Š‡ …Šƒ”‰‹‰ •‡…–‹‘ ‹• –Š‡ „ƒ…„‘‡ ‘ˆ –Š‡ …–ǡ ‹– Žƒ›• †‘™ –Š‡
’”‘˜‹•‹‘• ƒ• –‘ ™Šƒ– ƒ”‡ –ƒšƒ„Ž‡ ƒ† ƒ– ™Šƒ– ”ƒ–‡•Ǣ ‹…‘‡ ‘ˆ ™Š‹…Š ’‡”‹‘† ‹• –ƒšƒ„Ž‡ ƒ† ‹ ™Š‘•‡ Šƒ†•Ǥ
……‘”†‹‰Ž›ǡ–Š‡•‡…–‹‘’”‘˜‹†‡•–Šƒ–ǣ
ȋƒȌ …‘‡–ƒš•ŠƒŽŽ„‡…Šƒ”‰‡†ƒ––Š‡”ƒ–‡‘””ƒ–‡•’”‡•…”‹„‡†‹–Š‡ ‹ƒ…‡…–ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ǡ
ȋ„Ȍ –Š‡…Šƒ”‰‡‘ˆ–ƒš‹•‘˜ƒ”‹‘—•’‡”•‘••’‡…‹ϐ‹‡†—Ȁ•ʹȋ͵ͳȌǡ
ȋ…Ȍ –Š‡‹…‘‡•‘—‰Š––‘„‡–ƒš‡†‹•–Šƒ–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†‘–‘ˆ–Š‡‘ˆƒ••‡••‡–›‡ƒ”ǡ
ȋ†Ȍ –Š‡Ž‡˜›‘ˆ–ƒš‘–Š‡ƒ••‡••‡‡‹•‘Š‹•–‘–ƒŽ‘”–ƒšƒ„Ž‡‹…‘‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Šƒ†•—„Œ‡…––‘
–Š‡ƒ’’”‘’”‹ƒ–‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡ƒš…–ǡ‹…Ž—†‹‰’”‘˜‹•‹‘•ˆ‘”–Š‡Ž‡˜›‘ˆƒ††‹–‹‘ƒŽ…‘‡Ǧ–ƒšǤ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡„›˜‹”–—‡‘ˆƒ›’”‘˜‹•‹‘‘ˆ–Š‹•…–‹…‘‡Ǧ–ƒš‹•–‘„‡…Šƒ”‰‡†‹”‡•’‡…–‘ˆ–Š‡‹…‘‡
‘ˆƒ’‡”‹‘†‘–Š‡”–Šƒ–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‹…‘‡Ǧ–ƒš•ŠƒŽŽ„‡…Šƒ”‰‡†ƒ……‘”†‹‰Ž›Ǥ

RESIDENTIAL STATUS [SECTION 6]

‘–ƒŽ …‘‡ ‘ˆ ƒ ƒ••‡••‡‡ …ƒ‘– „‡ …‘’—–‡† —Ž‡•• –Š‡ ’‡”•‘ǯ• ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‹ †‹ƒ †—”‹‰ –Š‡ ’”‡˜‹‘—•
›‡ƒ”‹•‘™ǤŠ—•ǡ†‡–‡”‹‹‰”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ’‡”•‘‹•‹’‘”–ƒ–ˆ‘”…ƒŽ…—Žƒ–‹‰–ƒšŽ‹ƒ„‹Ž‹–› ‘ˆƒ’‡”•‘Ǥ
‡…–‹‘ ͸ ‘ˆ –Š‡ …‘‡ ƒš…– ’”‡•…”‹„‡• –Š‡ –‡•–• –‘ „‡ ƒ’’Ž‹‡† –‘ †‡–‡”‹‡ –Š‡ ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ ƒŽŽ –ƒš
’ƒ›‡”• ˆ‘” ’—”’‘•‡• ‘ˆ ‹…‘‡Ǧ–ƒšǤ  ƒ••‡••‡‡ǯ• ”‡•‹†‡–‹ƒŽ •–ƒ–—• —•– „‡ †‡–‡”‹‡† ™‹–Š ”‡ˆ‡”‡…‡ –‘ –Š‡
’”‡˜‹‘—•›‡ƒ”‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡‹…‘‡‹••‘—‰Š––‘„‡–ƒš‡†Ǥ
‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ’‡”•‘…‘—Ž†„‡ǣ

Š‡”‡ ƒ”‡ †‹ˆˆ‡”‡– –‡•–• –‘ „‡ ƒ’’Ž‹‡† ˆ‘” †‹ˆˆ‡”‡– –›’‡• ‘ˆ ’‡”•‘ǡ Ž‡– —• —†‡”•–ƒ† –‡•– ˆ‘” ‡ƒ…Š …ƒ–‡‰‘”› ‘ˆ
’‡”•‘ǣ
 Lesson 2 Ȉ Basic Concept of Income Tax 41

TEST OF RESIDENCE FOR INDIVIDUALS

Basic Condition for a person to be Resident
†‡”‡…–‹‘͸ȋͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡƒ‹†‹˜‹†—ƒŽ‹••ƒ‹†–‘„‡”‡•‹†‡–‹†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”‹ˆŠ‡ǣ
ƒǤ ‹•‹†‹ƒ‹–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”ƒ’‡”‹‘†‘”’‡”‹‘†•ƒ‘—–‹‰‹ƒŽŽ–‘‘‡Š—†”‡†ƒ†‡‹‰Š–›Ǧ–™‘†ƒ›•
‘”‘”‡‹Ǥ‡ǤǡŠ‡Šƒ•„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•–ͳͺʹ†ƒ›•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ‘”ǡ
„Ǥ Šƒ•„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•––Š”‡‡Š—†”‡†ƒ†•‹š–›Ǧϐ‹˜‡†ƒ›•ȋ͵͸ͷ†ƒ›•Ȍ†—”‹‰–Š‡ˆ‘—”›‡ƒ”•’”‡…‡†‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”ƒ†Šƒ•„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•–•‹š–›†ƒ›•ȋ͸Ͳ†ƒ›•Ȍ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ

Exception to the basic condition

–Š‡…ƒ•‡‘ˆˆ‘ŽŽ‘™‹‰‹†‹˜‹†—ƒŽȂ
ȋƒȌ „‡‹‰ƒ…‹–‹œ‡‘ˆ†‹ƒǡ™Š‘Ž‡ƒ˜‡•†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”ƒ•ƒ‡„‡”‘ˆ–Š‡…”‡™‘ˆƒ†‹ƒ•Š‹’ƒ•
†‡ϐ‹‡†‹…Žƒ—•‡ȋͳͺȌ‘ˆ•‡…–‹‘͵‘ˆ–Š‡‡”…Šƒ–Š‹’’‹‰…–ǡͳͻͷͺȋͶͶ‘ˆͳͻͷͺȌǡ‘”ˆ‘”–Š‡’—”’‘•‡•‘ˆ
‡’Ž‘›‡–‘—–•‹†‡†‹ƒǡ
 Rule 126 Computation of period of stay in India in certain cases
 ‹†‹˜‹†—ƒŽǡ„‡‹‰ƒ…‹–‹œ‡‘ˆ†‹ƒƒ†ƒ‡„‡”‘ˆ–Š‡…”‡™‘ˆƒ•Š‹’ǡ–Š‡’‡”‹‘†‘ˆ•–ƒ›‹†‹ƒ‹”‡•’‡…–
‘ˆƒ‡Ž‹‰‹„Ž‡˜‘›ƒ‰‡•ŠƒŽŽ‘–‹…Ž—†‡–Š‡’‡”‹‘†„‡‰‹‹‰ˆ”‘–Š‡†ƒ–‡‘ˆŒ‘‹‹‰–‹ŽŽ–Š‡†ƒ–‡‘ˆ•‹‰‹‰‘ˆˆ
ƒ•‡–‹‘‡†‹–Š‡‘–‹—‘—•‹•…Šƒ”‰‡‡”–‹ϐ‹…ƒ–‡—†‡”–Š‡‡”…Šƒ–Š‹’’‹‰…–ǡͳͻͷͺ
 Dz‡Ž‹‰‹„Ž‡˜‘›ƒ‰‡dz•ŠƒŽŽ‡ƒƒ˜‘›ƒ‰‡—†‡”–ƒ‡„›ƒ•Š‹’‡‰ƒ‰‡†‹–Š‡…ƒ””‹ƒ‰‡‘ˆ’ƒ••‡‰‡”•‘”ˆ”‡‹‰Š–
‹‹–‡”ƒ–‹‘ƒŽ–”ƒˆϐ‹…™Š‡”‡Ȃ
ȋ‹Ȍ ˆ‘”–Š‡˜‘›ƒ‰‡Šƒ˜‹‰‘”‹‰‹ƒ–‡†ˆ”‘ƒ›’‘”–‹†‹ƒǡŠƒ•ƒ•‹–•†‡•–‹ƒ–‹‘ƒ›’‘”–‘—–•‹†‡†‹ƒǢƒ†
ȋ‹‹Ȍ ˆ‘”–Š‡˜‘›ƒ‰‡Šƒ˜‹‰‘”‹‰‹ƒ–‡†ˆ”‘ƒ›’‘”–‘—–•‹†‡†‹ƒǡŠƒ•ƒ•‹–•†‡•–‹ƒ–‹‘ƒ›’‘”–‹†‹ƒǤ
ȋ„Ȍ „‡‹‰ƒ…‹–‹œ‡‘ˆ†‹ƒǡ‘”ƒ’‡”•‘‘ˆ†‹ƒ‘”‹‰‹™‹–Š‹–Š‡‡ƒ‹‰‘ˆš’Žƒƒ–‹‘–‘…Žƒ—•‡ȋ‡Ȍ‘ˆ•‡…–‹‘
ͳͳͷǡ™Š‘ǡ„‡‹‰‘—–•‹†‡†‹ƒǡ…‘‡•‘ƒ˜‹•‹––‘†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ

Š‡’”‘˜‹•‹‘•‘ˆ–Š‡•‡…‘†…‘†‹–‹‘•ŠƒŽŽƒ’’Ž›‹”‡Žƒ–‹‘–‘–Šƒ–›‡ƒ”ƒ•‹ˆˆ‘”–Š‡™‘”†•Dz•‹š–›†ƒ›•ȋ͸Ͳ†ƒ›•Ȍdzǡ
‘……—””‹‰–Š‡”‡‹ǡ–Š‡™‘”†•Dz‘‡Š—†”‡†ƒ†‡‹‰Š–›Ǧ–™‘†ƒ›•ȋͳͺʹ†ƒ›•ȌdzŠƒ†„‡‡•—„•–‹–—–‡†ǤHowever, for the
purpose of clause (b) as mentioned above, in case of the citizen or person of Indian origin having total income,
‘–Š‡”–Šƒ–Š‡‹…‘‡ˆ”‘ˆ‘”‡‹‰•‘—”…‡•ǡ‡š…‡‡†‹‰ϔ‹ˆ–‡‡ŽƒŠ”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡˆ‘”–Š‡
words “sixty days” occurring therein, the words “one hundred and twenty days” had been substituted.
[Amended vide Finance Act, 2020]
A person is deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in Undivided
India. It may be noted that grandparents include both maternal and paternal grand parents.
Note: ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹…Žƒ—•‡ȋͳȌǡƒ‹†‹˜‹†—ƒŽǡ„‡‹‰ƒ…‹–‹œ‡‘ˆ†‹ƒǡŠƒ˜‹‰–‘–ƒŽ‹…‘‡ǡ
‘–Š‡”–Šƒ–Š‡‹…‘‡ˆ”‘ˆ‘”‡‹‰•‘—”…‡•ǡ‡š…‡‡†‹‰ϐ‹ˆ–‡‡ŽƒŠ”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡†‡‡‡†
–‘„‡”‡•‹†‡–‹†‹ƒ‹–Šƒ–’”‡˜‹‘—•›‡ƒ”ǡ‹ˆŠ‡‹•‘–Ž‹ƒ„Ž‡–‘–ƒš‹ƒ›‘–Š‡”…‘—–”›‘”–‡””‹–‘”›„›”‡ƒ•‘‘ˆŠ‹•
†‘‹…‹Ž‡‘””‡•‹†‡…‡‘”ƒ›‘–Š‡”…”‹–‡”‹ƒ‘ˆ•‹‹Žƒ”ƒ–—”‡Ǥ[Amended vide Finance Act, 2020]
Non-Resident
ˆƒ‹†‹˜‹†—ƒŽ†‘‡•‘–•ƒ–‹•ˆ›ƒ›‘ˆ–Š‡ƒ„‘˜‡„ƒ•‹……‘†‹–‹‘•–Š‡ǡŠ‡™‹ŽŽ„‡–”‡ƒ–‡†ƒ•‘Ǧ‡•‹†‡–Ǥ–—•–
„‡‘–‡†–Šƒ––Š‡ˆ—Žϐ‹ŽŽ‡–‘ˆƒ›‘‡‘ˆ–Š‡ƒ„‘˜‡…‘†‹–‹‘•ȋƒȌ‘”ȋ„Ȍƒ•ƒ’’Ž‹…ƒ„Ž‡™‹ŽŽƒ‡ƒ‹†‹˜‹†—ƒŽ
”‡•‹†‡–‹†‹ƒˆ‘”–ƒš’—”’‘•‡•Ǥ —”–Š‡”‹–‹•–‘„‡‘–‡†–Šƒ––Š‡•‡…‘†‹–‹‘•ƒ”‡ƒŽ–‡”ƒ–‹˜‡ƒ†‘–…——Žƒ–‹˜‡
‹–Š‡‹”ƒ’’Ž‹…ƒ–‹‘Ǥ
Resident and Ordinarily Resident (ROR)
‹†‹˜‹†—ƒŽƒ›„‡…‘‡ƒ”‡•‹†‡–ƒ†‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒ‹ˆŠ‡•ƒ–‹•ϐ‹‡•„‘–Š–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•
‰‹˜‡—Ȁ•͸ȋͳȌ„‡•‹†‡••ƒ–‹•ˆ›‹‰ƒ›‘‡‘ˆ–Š‡ƒ„‘˜‡‡–‹‘‡†…‘†‹–‹‘•ǣ
ȋ‹Ȍ Š‡‹•ƒ”‡•‹†‡–‹ƒ–Ž‡ƒ•–ƒ›–™‘‘—–‘ˆ–Š‡–‡’”‡˜‹‘—•›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•
›‡ƒ”ǡƒ†
 42 Lesson 2 Ȉ EP-TL

ȋ‹‹Ȍ Š‡Šƒ•„‡‡‹†‹ƒˆ‘”͹͵Ͳ†ƒ›•‘”‘”‡†—”‹‰–Š‡•‡˜‡’”‡˜‹‘—•›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡”‡Ž‡˜ƒ–

’”‡˜‹‘—•›‡ƒ”Ǥ

Resident but Not Ordinarily Resident (RNOR)

‹†‹˜‹†—ƒŽ‹•‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹ƒ›’”‡˜‹‘—•›‡ƒ”‹ˆȂ
ȋƒȌ Š‡Šƒ•„‡‡ƒ‘Ǧ”‡•‹†‡–‹†‹ƒ‹‹‡‘—–‘ˆ–Š‡–‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Šƒ–›‡ƒ”ǡ‘”
ȋ„Ȍ Š‡Šƒ•†—”‹‰–Š‡•‡˜‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Šƒ–›‡ƒ”„‡‡‹†‹ƒˆ‘”ƒ’‡”‹‘†‘ˆǡ‘”’‡”‹‘†•ƒ‘—–‹‰
‹ƒŽŽ–‘ǡ•‡˜‡Š—†”‡†ƒ†–™‡–›Ǧ‹‡†ƒ›•ȋ͹ʹͻ†ƒ›•Ȍ‘”Ž‡••Ǥ
ȋ…Ȍ ƒ …‹–‹œ‡ ‘ˆ †‹ƒǡ ‘” ƒ ’‡”•‘ ‘ˆ †‹ƒ ‘”‹‰‹ǡ Šƒ˜‹‰ –‘–ƒŽ ‹…‘‡ǡ ‘–Š‡” –Šƒ –Š‡ ‹…‘‡ ˆ”‘ ˆ‘”‡‹‰
•‘—”…‡•ǡ‡š…‡‡†‹‰ϐ‹ˆ–‡‡ŽƒŠ”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ™Š‘Šƒ•„‡‡‹†‹ƒˆ‘”ƒ’‡”‹‘†‘”’‡”‹‘†•
ƒ‘—–‹‰‹ƒŽŽ–‘‘‡Š—†”‡†ƒ†–™‡–›†ƒ›•‘”‘”‡„—–Ž‡••–Šƒ‘‡Š—†”‡†ƒ†‡‹‰Š–›Ǧ–™‘†ƒ›•Ǣ‘”
ȋ†Ȍ ƒ…‹–‹œ‡‘ˆ†‹ƒ™Š‘‹•†‡‡‡†–‘„‡”‡•‹†‡–‹†‹ƒ—†‡”…Žƒ—•‡ȋͳȌ

ExplanationǣDz‹…‘‡ˆ”‘ˆ‘”‡‹‰•‘—”…‡•dz‡ƒ•‹…‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•‘—–•‹†‡†‹ƒȋ‡š…‡’–‹…‘‡
†‡”‹˜‡†ˆ”‘ƒ„—•‹‡••…‘–”‘ŽŽ‡†‹‘”ƒ’”‘ˆ‡••‹‘•‡–—’‹†‹ƒǤ
Therefore, if any individual fails to satisfy even one of the above conditions, he would be an RNOR. From FY 2020-21, a
citizen of India or a person of Indian origin who leaves India for employment outside India during the year will be a
resident and ordinarily resident if he stays in India for an aggregate period of 182 days or more. However, this condition
will apply only if his total income (other than foreign sources) exceeds Rs 15 lakh. Also, a citizen of India who is deemed
to be a resident in India (w.e.f. FY 2020-21) will be a resident and ordinarily resident in India.
Note: Income from foreign sources means income which accrues or arises outside India (except income derived from a
business controlled in India or profession set up in India).
Important Points
Ȉ Š‡ˆƒ…––Šƒ–ƒƒ••‡••‡‡‹•”‡•‹†‡–‹†‹ƒ‹”‡•’‡…–‘ˆ‘‡›‡ƒ”†‘‡•‘–ƒ—–‘ƒ–‹…ƒŽŽ›‡ƒ–Šƒ–Š‡™‘—Ž†
„‡”‡•‹†‡–‹–Š‡’”‡…‡†‹‰‘”•—……‡‡†‹‰›‡ƒ”•ƒ•™‡ŽŽǤ‘•‡“—‡–Ž›ǡ–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡ƒ••‡••‡‡
•Š‘—Ž†„‡†‡–‡”‹‡†ˆ‘”‡ƒ…Š›‡ƒ”•‡’ƒ”ƒ–‡Ž›ǤŠ‹•‹•‹˜‹‡™‘ˆ–Š‡ˆƒ…––Šƒ–ƒ’‡”•‘”‡•‹†‡–‹‘‡›‡ƒ”
ƒ›„‡…‘‡‘Ǧ”‡•‹†‡–‘”‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹ƒ‘–Š‡”›‡ƒ”ƒ†˜‹…‡˜‡”•ƒǤ
Ȉ –—•–ƒŽ•‘„‡‘–‡†–Šƒ––Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ‹†‹˜‹†—ƒŽˆ‘”–ƒš’—”’‘•‡•‹•‡‹–Š‡”„ƒ•‡†—’‘‘”
†‡–‡”‹‡†„›Š‹•…‹–‹œ‡•Š‹’ǡƒ–‹‘ƒŽ‹–›ƒ†’Žƒ…‡‘ˆ„‹”–Š‘”†‘‹…‹Ž‡ǤŠ‹•‹•„‡…ƒ—•‡‘ˆ–Š‡ˆƒ…––Šƒ–ǡˆ‘”
–ƒš’—”’‘•‡•ǡƒ‹†‹˜‹†—ƒŽƒ›„‡”‡•‹†‡–‹‘”‡–Šƒ‘‡…‘—–”›‹”‡•’‡…–‘ˆ–Š‡•ƒ‡›‡ƒ”Ǥ
Ȉ Š‡…‘‘ˆ‡ƒ–—”‡‹„‘–Š–Š‡ƒ„‘˜‡…‘†‹–‹‘•‹•–Š‡•–ƒ›‘ˆ–Š‡‹†‹˜‹†—ƒŽ‹†‹ƒˆ‘”ƒ•’‡…‹ϐ‹‡†’‡”‹‘†Ǥ
Š‡’‡”‹‘†‘ˆ•–ƒ›”‡“—‹”‡†‹‡ƒ…Š‘ˆ–Š‡…‘†‹–‹‘•‡‡†‘–‡…‡••ƒ”‹Ž›„‡…‘–‹—‘—•‘”…‘•‡…—–‹˜‡‘”
‹–‹••–‹’—Žƒ–‡†–Šƒ––Š‡•–ƒ›•Š‘—Ž†„‡ƒ––Š‡—•—ƒŽ’Žƒ…‡‘ˆ”‡•‹†‡…‡ǡ„—•‹‡••‘”‡’Ž‘›‡–‘ˆ–Š‡‹†‹˜‹†—ƒŽǤ
—”’‘•‡‘ˆ•–ƒ›‹•‹ƒ–‡”‹ƒŽ‹†‡–‡”‹‹‰–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•Ǥ
Ȉ Š‡•–ƒ›ƒ›„‡ƒ›™Š‡”‡‹†‹ƒƒ†ˆ‘”ƒ›Ž‡‰–Š‘ˆ–‹‡ƒ–‡ƒ…Š’Žƒ…‡‹…ƒ•‡•™Š‡”‡–Š‡•–ƒ›‹†‹ƒ‹•
ƒ–‘”‡’Žƒ…‡•–Šƒ‘‡ǡ™Šƒ–‹•”‡“—‹”‡†‹•–Š‡–‘–ƒŽ’‡”‹‘†‘ˆ•–ƒ›•Š‘—Ž†‘–„‡Ž‡••–Šƒ–Š‡—„‡”‘ˆ†ƒ›•
•’‡…‹ϐ‹‡†‹‡ƒ…Š…‘†‹–‹‘Ǥ
Ȉ Š‹Ž‡†‡–‡”‹‹‰”‡•‹†‡–‹ƒŽ•–ƒ–—•ǡ–Š‡†ƒ›‘ˆŽ‡ƒ˜‹‰ƒ†”‡–—”‹‰–‘†‹ƒ•Š‘—Ž†„‡…‘•‹†‡”‡†ƒ•ƒ•–ƒ›
‹†‹ƒǤ
Ȉ ‡”•‘‘ˆ†‹ƒ”‹‰‹‹•‘‡™Š‘‹•ǡ‘”‡‹–Š‡”‘ˆŠ‹•’ƒ”‡–•‘”‰”ƒ†’ƒ”‡–•™‡”‡„‘”‹†‹˜‹†‡††‹ƒǤ
Ȉ †‹ƒ‡ƒ•–‡””‹–‘”›‘ˆ†‹ƒǡ‹–•–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǡ…‘–‹‡–ƒŽ•Š‡Žˆǡš…Ž—•‹˜‡…‘‘‹…‘‡ȋ—’–‘ʹͲͲ
ƒ—–‹…ƒŽ‹Ž‡•Ȍƒ†ƒ‹”•’ƒ…‡ƒ„‘˜‡‹–•–‡””‹–‘”›ƒ†–‡””‹–‘”‹ƒŽ™ƒ–‡”•Ǥ
Ȉ Š‡”‡–Š‡‡šƒ…–ƒ””‹˜ƒŽƒ††‡’ƒ”–—”‡–‹‡‹•‘–ƒ˜ƒ‹Žƒ„Ž‡–Š‡–Š‡†ƒ›Š‡…‘‡•–‘†‹ƒƒ†–Š‡†ƒ›Š‡
Ž‡ƒ˜‡•†‹ƒ‹•…‘—–‡†ƒ••–ƒ›‹†‹ƒǤ
Steps to solve residential status of an Individual:
Step 1 ǣ‡–‡”‹‡™Š‡–Š‡”–Š‡‹†‹˜‹†—ƒŽˆƒŽŽ•—†‡”‡š…‡’–‹‘–‘„ƒ•‹……‘†‹–‹‘Ǣ
 Lesson 2 Ȉ Basic Concept of Income Tax 43

Step 2 ǣˆ›‡•ǡƒ’’Ž›‘Ž›ϐ‹”•–„ƒ•‹……‘†‹–‹‘ǡ‹ˆ•ƒ–‹•ϐ‹‡†ǡ–Š‡Š‡™‹ŽŽ„‡”‡•‹†‡–‘–Š‡”™‹•‡‘Ǧ”‡•‹†‡–Ǥˆ‘ǡ–Š‡

ƒ’’Ž›„‘–Š„ƒ•‹……‘†‹–‹‘•ƒ††‹˜‹†—ƒŽ„‡…‘‡•‡•‹†‡–‘•ƒ–‹•ˆƒ…–‹‘‘ˆƒ›‘‡‘ˆ–Š‡…‘†‹–‹‘•Ǥ
Step 3 ǣŠ‡…‹ˆ–Š‡–‡•–‘ˆ”†‹ƒ”‹Ž›‡•‹†‡–•‹••ƒ–‹•ϐ‹‡†ǡ‹ˆ›‡•ǡ–Š‡Š‡™‹ŽŽ„‡…ƒŽŽ‡†ǡ‘–Š‡”™‹•‡Š‡™‹ŽŽ „‡
…ƒŽŽ‡†Ǥ

DETERMINING RESIDENTIAL
STATUS OF INDIVIDUAL

RESIDENT AND NOT ORDINARILY NOT-REDIDENT

ORDINARILY RESIDENT REDIDENT
ȋ‡‹–Š‡”•ƒ–‹•ˆ›
ȋƒ–‹•ϐ‹‡•‡‹–Š‡”…‘†‹–‹‘ͳ ȋƒ–‹•ϐ‹‡•‡‹–Š‡”…‘†‹–‹‘ͳ …‘†‹–‹‘ͳ‘”
‘”ʹ„—–‘–…‘†‹–‹‘͵Ȍ ‘”ʹƒ†ƒŽ•‘•ƒ–‹•ϐ‹‡• …‘†‹–‹‘ʹȌ
…‘†‹–‹‘͵Ȍ

Condition 1 ǣˆ‹†‹˜‹†—ƒŽ‹•‹†‹ƒ‹–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”ƒ–‘–ƒŽ’‡”‹‘†‘ˆͳͺʹ†ƒ›•‘”‘”‡Ǥ

Condition 2 ǣˆŠ‡Šƒ•„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•–͵͸ͷ†ƒ›•†—”‹‰–Š‡Ͷ›‡ƒ”•’”‡…‡†‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ƒ† Šƒ•
„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•–͸Ͳ†ƒ›•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ‘™‡˜‡”ǡ–Š‹•͸Ͳ†ƒ›••ŠƒŽŽ„‡”‡ƒ†ƒ•ͳͺʹ†ƒ›•ǡ ‹ˆŠ‡‹•ƒǣ
Ȉ ‹–‹œ‡‘ˆ†‹ƒǡ™Š‘Ž‡ƒ˜‡•†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”ƒ•ƒ‡„‡”‘ˆ–Š‡…”‡™‘ˆƒ†‹ƒ•Š‹’ǡ‘”ˆ‘” –Š‡
’—”’‘•‡‘ˆ‡’Ž‘›‡–‘—–•‹†‡†‹ƒ‘”
Ȉ ‹–‹œ‡‘ˆ†‹ƒ‘”‘ˆ†‹ƒ‘”‹‰‹‡‰ƒ‰‡†‘—–•‹†‡†‹ƒȋ™Š‡–Š‡”ˆ‘””‡†‡”‹‰•‡”˜‹…‡‘—–•‹†‡‘”‘–Ȍ ƒ†
™Š‘…‘‡•‘ƒ˜‹•‹––‘†‹ƒ‹–Š‡ƒ›’”‡˜‹‘—•›‡ƒ”Ǥ
Condition 3 :
Ȉ ‹†‹˜‹†—ƒŽ™Š‘Šƒ•„‡‡ƒ‘Ǧ”‡•‹†‡–‹†‹ƒ‹ƒ–Ž‡ƒ•–‹‡‘—–‘ˆ–Š‡–‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰ –Šƒ–
›‡ƒ”ǡƒ†Šƒ•†—”‹‰–Š‡•‡˜‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Šƒ–›‡ƒ”„‡‡‹†‹ƒˆ‘”ƒ’‡”‹‘†‘ˆǡ‘” ’‡”‹‘†•
ƒ‘—–‹‰‹ƒŽŽ–‘͹ʹͻ†ƒ›•‘”Ž‡••Ǥ
Ȉ …‹–‹œ‡ ‘ˆ †‹ƒǡ ‘” ƒ ’‡”•‘ ‘ˆ †‹ƒ ‘”‹‰‹ǡ Šƒ˜‹‰ –‘–ƒŽ ‹…‘‡ǡ ‘–Š‡” –Šƒ –Š‡ ‹…‘‡ ˆ”‘ ˆ‘”‡‹‰
•‘—”…‡•ǡ‡š…‡‡†‹‰ϐ‹ˆ–‡‡ŽƒŠ”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ™Š‘Šƒ•„‡‡‹†‹ƒˆ‘”ƒ’‡”‹‘†‘”’‡”‹‘†•
ƒ‘—–‹‰‹ƒŽŽ–‘‘‡Š—†”‡†ƒ†–™‡–›†ƒ›•‘”‘”‡„—–Ž‡••–Šƒ‘‡Š—†”‡†ƒ†‡‹‰Š–›Ǧ –™‘†ƒ›•Ǣ‘”
[Amended vide Finance Act, 2020] ”
Ȉ  ‹†‹˜‹†—ƒŽǡ „‡‹‰ ƒ …‹–‹œ‡ ‘ˆ †‹ƒǡ Šƒ˜‹‰ –‘–ƒŽ ‹…‘‡ǡ ‘–Š‡” –Šƒ –Š‡ ‹…‘‡ ˆ”‘ ˆ‘”‡‹‰ •‘—”…‡•ǡ
‡š…‡‡†‹‰ ϐ‹ˆ–‡‡ ŽƒŠ ”—’‡‡• †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ ”‡•‹†‡– ‹ †‹ƒ ‹ –Šƒ–
’”‡˜‹‘—• ›‡ƒ”ǡ ‹ˆ Š‡ ‹• ‘– Ž‹ƒ„Ž‡ –‘ –ƒš ‹ ƒ› ‘–Š‡” …‘—–”› ‘” –‡””‹–‘”› „› ”‡ƒ•‘ ‘ˆ Š‹• †‘‹…‹Ž‡ ‘”
”‡•‹†‡…‡‘”ƒ›‘–Š‡”…”‹–‡”‹ƒ‘ˆ•‹‹Žƒ”ƒ–—”‡Ǥ[Amended vide Finance Act, 2020]

Illustration 3:
”Ǥǡ ƒ†‹ƒ ‹–‹œ‡ǡ ‹•Ž‹˜‹‰ ‹ —„ƒ‹•‹…‡ ͳͻͷͲǡŠ‡ Ž‡ˆ– ˆ‘”Š‹ƒ ‘ —Ž›ͳǡ ʹͲͳ͸ ƒ†…‘‡• „ƒ…‘
—‰—•–͹ǡʹͲʹͳǤ‡–‡”‹‡Š‹•”‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
Solution:
–ƒ›‹†‹ƒˆ‘”ƒ‹‹—’‡”‹‘†‘ˆͳͺʹ†ƒ›•‹–Š‡’”‡˜‹‘—•›‡ƒ”ǣ
”ǤŠƒ••–ƒ›‡†‹†‹ƒˆ‘”ʹ͵͹ȋ˜‹œǤʹͷΪ͵ͲΪ͵ͳΪ͵ͲΪ͵ͳΪ͵ͳΪʹͺΪ͵ͳȌ†ƒ›•‹–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤ
‘ǡ–Š‹•–‡•–‹••ƒ–‹•ϐ‹‡†Ǥ
‘ǡ”Ǥ•ŠƒŽŽ„‡ƒ”‡•‹†‡–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤȋ••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵ȌǤ ‡‡’‹‰‹
˜‹‡™–Š‡ˆƒ…–•‘ˆ–Š‡‰‹˜‡…ƒ•‡ǡ”Ǥ•ƒ–‹•ϐ‹‡•–Š‡–™‘ƒ††‹–‹‘ƒŽ…‘†‹–‹‘•ƒŽ•‘ƒ‡Ž›ǣ ‡‹•”‡•‹†‡–‹–™‘
‘—–‘ˆ–‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
44 Lesson 2 Ȉ EP-TL

PY Stay in PY (days) Stay during PY (days) Basic Condition Resident/Non- Resident

ƒ–‹•ϐ‹‡†
ʹͲʹͲǦʹͳ ‹Ž Ǧ ‘‡ ‘Ǧ‡•‹†‡–
ʹͲͳͻǦʹͲ ‹Ž Ǧ ‘‡ ‘Ǧ‡•‹†‡–
ʹͲͳͺǦͳͻ ‹Ž Ǧ ‘‡ ‘Ǧ‡•‹†‡–
ʹͲͳ͹Ǧͳͺ ‹Ž Ǧ ‘‡ ‘Ǧ‡•‹†‡–
ʹͲͳ͸Ǧͳ͹ ͵ͲΪ͵ͳΪ͵ͲΪͳαͻʹ ͵͸ͷ†ƒ›• ‡…‘† ‡•‹†‡–
ʹͲͳͷǦͳ͸ ͵͸ͷ ͵͸ͷ ‹”•– ‡•‹†‡–
‹••–ƒ›‹†‹ƒ‹•ƒŽ•‘‘”‡–Šƒ͹͵Ͳ†ƒ›•‹͹’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ•Š‡Ž‡ˆ–
ˆ‘” ƒ’ƒ‘ͳ•– —Ž›ʹͲͳͷǤ

PY Stay (days)
ʹͲʹͲǦʹͳ ‹Ž
ʹͲͳͻǦʹͲ ‹Ž
ʹͲͳͺǦͳͻ ‹Ž
ʹͲͳ͹Ǧͳͺ ‹Ž
ʹͲͳ͸Ǧͳ͹ ͻʹ
ʹͲͳͷǦͳ͸ ͵͸ͷ
ʹͲͳͶǦͳͷ ͵͸͸
‘–ƒŽ–ƒ›‹͹”‡˜‹‘—•‡ƒ”• ͺʹ͵
‡…‡ǡ”Ǥ‹•”‡•‹†‡–ƒ†‘”†‹ƒ”›”‡•‹†‡–‹†‹ƒˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹͲǦʹ͵Ǥ

Illustration 4:
”Ǥ –‡˜‡ ƒ—‰Šǡ –Š‡ —•–”ƒŽ‹ƒ …”‹…‡–‡” …‘‡• –‘ †‹ƒ ˆ‘” ͳͲͲ †ƒ›• ‡˜‡”› ›‡ƒ”Ǥ ‹† ‘—– Š‹• ”‡•‹†‡–‹ƒŽ
•–ƒ–—•ˆ‘”ʹͲʹͲǦʹ͵Ǥ
Solution:
Step 1 ǣŠ‡–‘–ƒŽ•–ƒ›‘ˆ”Ǥ–‡˜‡ƒ—‰Š‹–Š‡Žƒ•–Ͷ’”‡…‡†‹‰›‡ƒ”•‹•ͶͲͲ†ƒ›•ƒ†Š‹••–ƒ›‹†‹ƒ†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”‹•ͳͲͲ†ƒ›•Ǥ‹…‡ǡŠ‡•ƒ–‹•ϐ‹‡†–Š‡•‡…‘†…‘†‹–‹‘‹•‡…–‹‘͸ȋͳȌǡŠ‡‹•”‡•‹†‡–Ǥ
Step 2 ǣ‹…‡Š‹•–‘–ƒŽ•–ƒ›‹†‹ƒ‹–Š‡Žƒ•–͹›‡ƒ”•’”‡…‡†‹‰–Š‡’”‡˜‹‘—•›‡ƒ”•‹•͹ͲͲ†ƒ›•ǡŠ‡†‘‡•‘–
•ƒ–‹•ˆ›–Š‡‹‹—”‡“—‹”‡‡–‘ˆ͹͵Ͳ†ƒ›•‹͹›‡ƒ”•Ǥ
Š‡”‡ˆ‘”‡ –Š‡ ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ ”Ǥ –‡˜‡ ƒ—‰Š ˆ‘” –Š‡ ƒ••‡••‡– ›‡ƒ” ʹͲʹͲǦʹ͵ ‹• ‡•‹†‡– „—– ‘–
‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒǤ

Illustration 5:
”Ǥǡƒ†‹ƒ‹–‹œ‡ƒ†ƒ”‘ˆ‡••‘”‹ǡ—…‘™ǡŽ‡ˆ–†‹ƒ‘‡’–‡„‡”ͳͷǡʹͲʹͳˆ‘”–‘–ƒ‡—’ ƒ
”‘ˆ‡••‘”ǯ•Œ‘„‹ǡǤ‡–‡”‹‡Š‹•”‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹͲǦʹ͵Ǥ
Solution:
”Ǥ„‡‹‰ƒ…‹–‹œ‡‘ˆ†‹ƒƒ†™Š‘Šƒ•‰‘‡‘—–‘ˆ–Š‡…‘—–”›ˆ‘”‡’Ž‘›‡–ǡ™‹ŽŽ„‡‰‘˜‡”‡†„›ͳͺʹ†ƒ›•–‡•–
‘Ž›ƒ†–Š‡”‡ˆ‘”‡–Š‡•‡…‘†…‘†‹–‹‘—†‡”•‡…–‹‘͸ȋͳȌǡ‹Ǥ‡Ǥ͸Ͳ†ƒ›•†—”‹‰”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ ‘–
„‡ƒ’’Ž‹…ƒ„Ž‡Ǥ
”Ǥ•–ƒ›‡†‹†‹ƒˆ‘”ͳ͸ͺȋ˜‹œǤ͵ͲΪ͵ͳΪ͵ͲΪ͵ͳΪ͵ͳΪͳͷȌ†ƒ›•‘Ž›‹–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
‡…‡ǡ”Ǥ•ŠƒŽŽ„‡ƒ‘Ǧ”‡•‹†‡–‹†‹ƒˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ƒ•…‘†‹–‹‘„›•–ƒ›‘ˆͳͺʹ†ƒ›•Ǥ
‹”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”‹•‘–•ƒ–‹•ϐ‹‡†Ǥ
Lesson 2 Ȉ Basic Concept of Income Tax 45

Illustration 6:
”Ǥ‹Žǡƒ†‹ƒ…‹–‹œ‡ǡŽ‡ƒ˜‡•†‹ƒ‘ʹʹ†‡’–‡„‡”ǡʹͲʹͳˆ‘”–Š‡ϐ‹”•––‹‡–‘™‘”ƒ•ƒ‰‹‡‡”‹
”ƒ…‡Ǥ‡–‡”‹‡Š‹•”‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”ʹͲʹʹǦʹ͵Ǥ
Solution:
—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǡ”Ǥ‹Žǡƒ†‹ƒ…‹–‹œ‡ǡ™ƒ•‹†‹ƒˆ‘”ͳ͹ͷ†ƒ›•ȋ‹Ǥ‡Ǥ͵ͲΪ͵ͳΪ͵ͲΪ͵ͳΪ͵ͳΪʹʹȌǤ
‡†‘‡•‘–•ƒ–‹•ˆ›–Š‡‹‹—…”‹–‡”‹ƒ‘ˆͳͺʹ†ƒ›•ǤŽ•‘•‹…‡Š‡‹•ƒ†‹ƒ…‹–‹œ‡Ž‡ƒ˜‹‰†‹ƒˆ‘”–Š‡
’—”’‘•‡‘ˆ‡’Ž‘›‡–‘—–•‹†‡†‹ƒǡ–Š‡•‡…‘†…‘†‹–‹‘—Ȁ•͸ȋͳȌ‹•‘–ƒ’’Ž‹…ƒ„Ž‡–‘Š‹Ǥ
Š‡”‡ˆ‘”‡”Ǥ‹Ž‹•‘Ǧ”‡•‹†‡–ˆ‘”–Š‡ʹͲʹͲǦʹ͵Ǥ

CASE LAW
April 3, 2009 ƒ‘Œ—ƒ”‡††›Ǥ…‘‡ƒšˆϔ‹…‡”ȋ–‡”ƒ–‹‘ƒŽƒšƒ–‹‘Ȍ ITAT
Facts of the Case:Š‡…ƒ•‡”‡Žƒ–‡•–‘ʹͲͲͷǦͲ͸ǤŠ‡ƒ••‡••‡‡™ƒ•ƒ‡’Ž‘›‡‡‘ˆƒ†‹ƒ…‘’ƒ›Ǥ
ʹ͵ǤͲͳǤʹͲͲͶǡ–Š‡‡’Ž‘›‡”†‹ƒ…‘’ƒ›‹••—‡†ƒ†‡’—–ƒ–‹‘Ž‡––‡”–‘–Š‡ƒ••‡••‡‡ƒ††‹”‡…–‡†Š‹–‘™‘”
‘•‘‡•’‡…‹ϐ‹‡†’”‘Œ‡…–‹Ǥ•’‡”–Š‡†‡’—–ƒ–‹‘‘”†‡”ǡ‹–™ƒ•‡–‹‘‡†–Šƒ–Š‡™‹ŽŽ”‡ƒ‹…‘–‹—‡†
–‘„‡‡’Ž‘›‡†—†‡”–Š‡†‹ƒ…‘’ƒ›‘Ž›Ǥ
—”‹‰–Š‡†‡’—–ƒ–‹‘’‡”‹‘†ǡŠ‡…ƒ‡–‘†‹ƒƒ†•–ƒ›‡†‹†‹ƒˆ”‘ͳͺǤͲͺǤʹͲͲͶ–‘Ͳ͸ǤͲͻǤʹͲͲͶǤˆ–‡”…‘’Ž‡–‹‰Š‹•
™‘”Š‡”‡–—”‡†„ƒ…–‘†‹ƒ‘͵ͳǤͲͳǤʹͲͲͷƒ–ͶǤǤ—ƒ”›‘ˆŠ‹••–ƒ›‹†‹ƒ‹•‰‹˜‡„‡Ž‘™ǣǦ

Previous Year No. of days in India

ʹͲͲͲǦͲͳ ͵͸ͷ
ʹͲͲͳǦͲʹ ͵͸ͷ
ʹͲͲʹǦͲ͵ ͵͸ͷ
ʹͲͲ͵ǦͲͶ ͵Ͳ͸
ʹͲͲͶǦͲͷ ͹ͺ
‘ŽŽ‘™‹‰…‘–‡–‹‘•™‡”‡‘„•‡”˜‡†„›‹–Š‹•…ƒ•‡ǣǦ
Ȉ —”‹‰ʹͲͲͶǦͲͷǡ–‘–ƒŽ•–ƒ›‘ˆƒ••‡••‡‡‹†‹ƒ™ƒ•ˆ‘”ƒ’‡”‹‘†Ž‡••–Šƒͳͺʹ†ƒ›•Ǥ‡…‡ǡϐ‹”•–Ž‹„‘ˆ
‡…–‹‘͸ȋͳȌ•ŠƒŽŽ‘–ƒ’’Ž›Ǥ
Ȉ •ˆƒ”ƒ••‡…‘†Ž‹„‘ˆ‡…–‹‘͸ȋͳȌ‹•…‘…‡”‡†Ǥ–‹•‰‡––‹‰ƒ’’Ž‹…ƒ„Ž‡ƒ••–ƒ›‹†‹ƒ†—”‹‰–Š‡‹•
ˆ‘”͹ͺ†ƒ›•‹Ǥ‡Ǥ‘”‡–Šƒ͸Ͳ†ƒ›•ƒ†–‘–ƒŽ•–ƒ›‹ƒŽŽͶ’”‡…‡†‹‰ʹͲͲͶǦͲͷ‹•‡š…‡‡†‹‰͵͸ͷ†ƒ›•Ǥ
‘™‡˜‡”ǡ„‡‡ϐ‹–‰‹˜‡‹‡š’Žƒƒ–‹‘ͳ–‘–Š‡•‡…‘†Ž‹„ƒŽ•‘‡‡†•–‘„‡‡šƒ‹‡†Ǥ

š’Žƒƒ–‹‘ͳ…Žƒ—•‡ȋƒȌƒ’’Ž‹‡•™Š‡”‡ƒ••‡••‡‡Ž‡ƒ˜‡•†‹ƒˆ‘”‡’Ž‘›‡–’—”’‘•‡Ǥ”‡Ž‹‡†‘†‡…‹•‹‘

‘ˆ—–Š‘”‹–›‘ˆ†˜ƒ…‡—Ž‹‰‹…ƒ•‡‘ˆ”‹–‹•Š
ƒ•†‹ƒȋȌ–†ǤȏʹͲͲ͸Ȑʹͺͷʹͳͺȋ‡™‡ŽŠ‹Ȍ™Š‡”‡‹–™ƒ•
Š‡Ž† –Šƒ– ˆ‘” ’—”’‘•‡ ‘ˆ Dz‡’Ž‘›‡– ‘—–•‹†‡ †‹ƒdzǡ ‡˜‡ ƒ••‡••‡‡ ‘ †‡’—–ƒ–‹‘ •‡– ‘—–•‹†‡ †‹ƒ „› ƒ
†‹ƒ‡’Ž‘›‡”‹•ƒŽ•‘…‘˜‡”‡†Ǥ‘™‡˜‡”ǡ…Žƒ—•‡ȋƒȌ‘ˆš’Žƒƒ–‹‘ͳ•ŠƒŽŽƒ’’Ž›ˆ‘”–Šƒ–›‡ƒ”‘Ž›‹™Š‹…Š–Š‡
ƒ••‡••‡‡ ‹• Ž‡ƒ˜‹‰ †‹ƒ ˆ‘” ‡’Ž‘›‡–ǡ ‹Ǥ‡Ǥ  ʹͲͲ͵ǦͲͶ ‹ –Š‹• …ƒ•‡Ǥ ‡…‡ǡ Žƒ—•‡ ȋƒȌ ‘ˆ š’Žƒƒ–‹‘ ͳ ‹•
ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ʹͲͲ͵ǦͲͶ‘Ž›‘–ˆ‘”ʹͲͲͶǦͲͷǤ
Žƒ—•‡ ȋ„Ȍ –‘ š’Žƒƒ–‹‘ ͳǣ Š‡ ƒ••‡••‡‡ ™ƒ• ˆ‘” ƒ Dz˜‹•‹–dz ‹ †‹ƒ ˆ”‘ ‘—–•‹†‡ †‹ƒ †—”‹‰ ͳͺǤͲͺǤʹͲͲͶ –‘
Ͳ͸ǤͲͻǤʹͲͲͶǤ‘™‡˜‡”ǡŠ‡”‡–—”‡†„ƒ…–‘†‹ƒ‘͵ͳǤͲͳǤʹͲͲͷǤŠ‡’‡”‹‘†ƒˆ–‡”͵ͳǤͲͳǤʹͲͲͷ…ƒ‘–„‡–”‡ƒ–‡†
ƒ•Dz˜‹•‹–dzǤ‡…‡ǡ…Žƒ—•‡ȋ„Ȍ–‘š’Žƒƒ–‹‘ͳ…ƒ‘–ƒ’’Ž›Ǥ‘™‡˜‡”ǡ–‘†‡–‡”‹‡’‡”‹‘†‘ˆ•–ƒ›—†‡”•‡…‘†
Ž‹„‘ˆ‡…–‹‘͸ȋͳȌ’‡”‹‘†‘ˆ˜‹•‹–•ŠƒŽŽ„‡‡š…Ž—†‡†Ǥ‡…‡ǡ–‘–ƒŽ•–ƒ›†—”‹‰ʹͲͲͶǦͲͷ™‹ŽŽ„‡”‡…‘‡†ˆ”‘
͵ͳǤͲͳǤʹͲͲͷ–‘͵ͳǤͲ͵ǤʹͲͲͷǤ
Judgement:Š‡Ž†–Šƒ–Dzƒ›dz†‘‡•‘–‹…Ž—†‡Dzˆ”ƒ…–‹‘‘ˆƒ›dzǤŠ‡”‡ˆ‘”‡ǡƒ••‡••‡‡ǯ•–‘–ƒŽ•–ƒ›™ƒ•ˆ‘”ƒ
’‡”‹‘†‘ˆͷͻ†ƒ›•‘Ž›Ǥ͵ͳǤͲͳǤʹͲͲͷ™ƒ•‘–‹…Ž—†‡†„‡…ƒ—•‡Š‡ƒ””‹˜‡†‹†‹ƒƒ–ͶǤǤŠ‡”‡•‹†‡–‹ƒŽ•–ƒ–—•
‘ˆƒ••‡••‡‡Ǧ‘Ǧ‡•‹†‡–Ǥ
 46 Lesson 2 Ȉ EP-TL

TESTS OF RESIDENCE FOR HINDU UNDIVIDED FAMILIES

A HUF

Resident Non-Resident

If control and management of the affairs is If control and management of the affairs is
situated wholly or partly in India. situated wholly outside India.

If the HUF is resident, then the status of the

Karta would determine whether the HUF is

ROR RNOR

If karta is ROR, then If karta is RNOR, then the

the HUF would be ROR HUF would be R NOR

Š‡–‡•––‘„‡ƒ’’Ž‹‡†–‘†‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ ‹•„ƒ•‡†—’‘–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ–Š‡
ƒˆˆƒ‹”•‘ˆ–Š‡ƒ••‡••‡‡…‘…‡”‡†ǤŠ‡–‡•–•„ƒ•‡†‘–Š‡’‡”‹‘†‘ˆ•–ƒ›‹†‹ƒƒ’’Ž‹…ƒ„Ž‡–‘‹†‹˜‹†—ƒŽ•…ƒ‘–„‡
ƒ’’Ž‹‡†–‘–Š‡•‡ƒ••‡••‡‡•ˆ‘”‘„˜‹‘—•”‡ƒ•‘•Ǥ
Meaning of Place of Control and Management
Š‡‡š’”‡••‹‘…‘–”‘Žƒ†ƒƒ‰‡‡–”‡ˆ‡”•–‘–Š‡ˆ—…–‹‘•‘ˆ†‡…‹•‹‘Ǧƒ‹‰ƒ†‹••—‹‰†‹”‡…–‹‘•„—–‘–
–Š‡’Žƒ…‡•™Š‡”‡ˆ”‘–Š‡„—•‹‡••‹•…ƒ””‹‡†‘Ǥ
‘–Š‡”™‘”†•ǡ–Š‡‘–”‘Žƒ†ƒƒ‰‡‡–‡ƒ•–ƒ‹‰’‘Ž‹…›†‡…‹•‹‘•”‡Žƒ–‹‰–‘„—•‹‡••Ǥ‘Ž‹…›†‡…‹•‹‘•
ƒ”‡…‘…‡”‹‰ϐ‹ƒ…‡ǡƒ”‡–‹‰ǡ’”‘†—…–‹‘ǡƒ†˜‡”–‹•‹‰ǡ’‡”•‘‡Ž‡–…Ǥ–†‘‡•‘–‡ƒ†ƒ›–‘†ƒ›‘’‡”ƒ–‹‘•
‘ˆ–Š‡…‘…‡”Ȁƒ••‡••‡‡ǤŠ‡…‘–”‘Žƒ†ƒƒ‰‡‡–‹••‹–—ƒ–‡†ƒ––Šƒ–’Žƒ…‡™Š‡”‡’‘Ž‹…›†‡…‹•‹‘•ƒ”‡–ƒ‡Ǥ
Š‡„—•‹‡••ƒ›„‡†‘‡ˆ”‘‘—–•‹†‡†‹ƒƒ†›‡–‹–•…‘–”‘Žƒ†ƒƒ‰‡‡–ƒ›„‡™Š‘ŽŽ›™‹–Š‹†‹ƒǤ
Š‡”‡ˆ‘”‡ǡ…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆƒ„—•‹‡••‹••ƒ‹†–‘„‡•‹–—ƒ–‡†ƒ–ƒ’Žƒ…‡™Š‡”‡–Š‡Š‡ƒ†ƒ†„”ƒ‹‘ˆ–Š‡
„—•‹‡••‹••‹–—ƒ–‡†ǤŠ‡’Žƒ…‡‘ˆ…‘–”‘Žƒ†ƒ›„‡†‹ˆˆ‡”‡–ˆ”‘–Š‡—•—ƒŽ’Žƒ…‡‘ˆ”—‹‰–Š‡„—•‹‡••‡•ƒ†
•‘‡–‹‡•‡˜‡–Š‡”‡‰‹•–‡”‡†‘ˆϐ‹…‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ—–…‘–”‘Žƒ†ƒƒ‰‡‡–†‘‹’Ž›–Š‡ˆ—…–‹‘‹‰‘ˆ–Š‡
…‘–”‘ŽŽ‹‰ƒ††‹”‡…–‹‰’‘™‡”ƒ–ƒ’ƒ”–‹…—Žƒ”’Žƒ…‡™‹–Š•‘‡†‡‰”‡‡‘ˆ’‡”ƒ‡…‡Ǥ
Ȉ ‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ ǣ–‹•™‹–Šƒ”–ƒ‘”‹–•ƒƒ‰‡”Ǥ
Ȉ ‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ ‹”Ȁǣ–‹•™‹–Šƒ”–‡”•Ȁ‡„‡”•Ǥ

 ǡϐ‹”‘”‘–Š‡”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‹••ƒ‹†–‘„‡”‡•‹†‡–‹†‹ƒ™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘͸ȋʹȌ‹ƒ›
’”‡˜‹‘—•›‡ƒ”ǡ‹ˆ†—”‹‰–Šƒ–›‡ƒ”–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ‹–•ƒˆˆƒ‹”•‹••‹–—ƒ–‡†™Š‘ŽŽ›‘”’ƒ”–Ž›‹†‹ƒǤˆ–Š‡
…‘–”‘Ž ƒ† ƒƒ‰‡‡– ‘ˆ ‹–• ƒˆˆƒ‹”• ‹• •‹–—ƒ–‡† ™Š‘ŽŽ› ‘—–•‹†‡ †‹ƒ †—”‹‰ –Š‡ ”‡Ž‡˜ƒ– ’”‡˜‹‘—• ›‡ƒ”ǡ ‹– ‹•
…‘•‹†‡”‡†‘Ǧ”‡•‹†‡–Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 47

HUF, Firm or Association of

Persons (AOP)

Resident Non resident

ˆ†—”‹‰–Šƒ––Š‡’”‡˜‹‘—•›‡ƒ”–Š‡…‘–”‘Ž ˆ–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ‹–•ƒˆˆƒ‹”•
ƒ†ƒƒ‰‡‡–‘ˆ‹–•ƒˆˆƒ‹”•‹••‹–—ƒ–‡† ‹••‹–—ƒ–‡†™Š‘ŽŽ›‘—–•‹†‡†‹ƒ†—”‹‰–Š‡
™Š‘ŽŽ›‘”’ƒ”–Ž›‹‹†‹ƒǤ ’”‡˜‹‘—•›‡ƒ”Ǥ

An HUF can be “not ordinarily resident”

ˆ ƒƒ‰‡”Ȁƒ”–ƒ Šƒ• „‡‡ ƒ ‘– ‘”†‹ƒ”‹Ž› ”‡•‹†‡– ‹ †‹ƒ ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ –‡•–•
ƒ’’Ž‹…ƒ„Ž‡ –‘ ‹†‹˜‹†—ƒŽ•Ǥ Š‡”‡ǡ †—”‹‰ –Š‡ Žƒ•– –‡ ›‡ƒ”• –Š‡ ƒ”–ƒ• ‘ˆ –Š‡ ǤǤ Ǥ Šƒ† „‡‡ †‹ˆˆ‡”‡– ˆ”‘ ‘‡
ƒ‘–Š‡”ǡ –Š‡ –‘–ƒŽ ’‡”‹‘† ‘ˆ •–ƒ› ‘ˆ •—……‡••‹˜‡ ƒ”–ƒ• ‘ˆ –Š‡ •ƒ‡ ˆƒ‹Ž› •Š‘—Ž† „‡ ƒ‰‰”‡‰ƒ–‡† –‘ †‡–‡”‹‡ –Š‡
”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡ƒ”–ƒƒ†…‘•‡“—‡–Ž›–Š‡ǤǤ Ǥ
‘–Š‡”™‘”†•ǡ‹ˆƒ”–ƒ‘ˆ‡•‹†‡– •ƒ–‹•ϐ‹‡•„‘–Š–Š‡ˆ‘ŽŽ‘™‹‰ƒ††‹–‹‘ƒŽ…‘†‹–‹‘•ȋƒ•ƒ’’Ž‹…ƒ„Ž‡‹…ƒ•‡‘ˆ
†‹˜‹†—ƒŽȌ–Š‡‡•‹†‡– ™‹ŽŽ„‡ǡ‘–Š‡”™‹•‡‹–™‹ŽŽ„‡ǣ
Additional Conditions:
ȋͳȌ ƒ”–ƒ‘ˆ‡•‹†‡– •Š‘—Ž†„‡”‡•‹†‡–‹ƒ–Ž‡ƒ•–ʹ’”‡˜‹‘—•›‡ƒ”•‘—–‘ˆͳͲ’”‡˜‹‘—•›‡ƒ”•‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
ȋʹȌ –ƒ›‘ˆƒ”–ƒ†—”‹‰͹’”‡˜‹‘—•›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•Š‘—Ž†„‡͹͵Ͳ†ƒ›• ‘”
‘”‡Ǥ

Important Note:
Ȉ –‹•‹ƒ–‡”‹ƒŽ™Š‡–Š‡”ƒ”–ƒ‹•‡•‹†‡–‘”‘Ǧ‡•‹†‡–†—”‹‰”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ǡˆ‘”–Š‡’—”’‘•‡ ‘ˆ
†‡–‡”‹‹‰™Š‡–Š‡” ‹•‘”Ǥˆƒ”–ƒ•ƒ–‹•ϐ‹‡•„‘–Š–Š‡ƒ††‹–‹‘ƒŽ…‘†‹–‹‘•ǡ–Š‡ ™‹ŽŽ
„‡ǡ‘–Š‡”™‹•‡Ǥ
Ȉ ‹”•ǡƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǡŽ‘…ƒŽƒ—–Š‘”‹–‹‡•ƒ†‘–Š‡”ƒ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ’‡”•‘•…ƒ„‡‡‹–Š‡””‡•‹†‡–
ȋ‘”†‹ƒ”‹Ž›”‡•‹†‡–Ȍ‘”‘Ǧ”‡•‹†‡–‹†‹ƒ„—––Š‡›…ƒ‘–„‡‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒǤ
Ȉ ˜‡ ‹ˆ ‡‰Ž‹‰‹„Ž‡ ’‘”–‹‘ ‘ˆ –Š‡ …‘–”‘Ž ƒ† ƒƒ‰‡‡– ‘ˆ –Š‡ ƒˆˆƒ‹”• ‹• ‡š‡”…‹•‡† ˆ”‘ †‹ƒǡ ‹– ™‹ŽŽ„‡
•—ˆϐ‹…‹‡––‘ƒ‡–Š‡ˆƒ‹Ž›ǡϐ‹”‘”–Š‡ƒ••‘…‹ƒ–‹‘”‡•‹†‡–‹†‹ƒˆ‘”–ƒš’—”’‘•‡•Ǥ ‘”‹•–ƒ…‡ǡ ‹ˆ –Š‡
ƒˆˆƒ‹”•‘ˆƒϐ‹”ƒ”‡…‘–”‘ŽŽ‡†’ƒ”–Ž›ˆ”‘†‹ƒƒ†’ƒ”–Ž›ˆ”‘ƒ‰Žƒ†‡•Šǡ–Š‡ϐ‹”™‘—Ž†„‡”‡•‹†‡–‹
†‹ƒǤ
Ȉ Š‹Ž‡–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ–Š‡ƒˆˆƒ‹”•‘ˆ–Š‡ϐ‹”‘”ˆƒ‹Ž›™‘—Ž†‡…‡••ƒ”‹Ž›„‡‡š‡”…‹•‡†„›–Š‡
’ƒ”–‡”•‘ˆ–Š‡ϐ‹”‘”‡„‡”•‘ˆ–Š‡ˆƒ‹Ž›ǡ–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡‡„‡”•‘”’ƒ”–‡”• ‹•‰‡‡”ƒŽŽ›
‹””‡Ž‡˜ƒ–ˆ‘”†‡–‡”‹‹‰–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡ϐ‹”‘”ˆƒ‹Ž›Ǥ—–‹…ƒ•‡•™Š‡”‡–Š‡ ”‡•‹†‡–‹ƒŽ•–ƒ–—•
‘ˆ–Š‡’ƒ”–‡”•ƒ–‡”‹ƒŽŽ›ƒˆˆ‡…–•‘”†‡–‡”‹‡•–Š‡’Žƒ…‡‘ˆ…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ–Š‡ƒˆˆƒ‹”•‘ˆ–Š‡ϐ‹”ǡ–Š‡
”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ –Š‡ ‡„‡” ‘” ’ƒ”–‡”• •Š‘—Ž† ƒŽ•‘ „‡ –ƒ‡ ‹–‘ƒ……‘—–‹†‡–‡”‹‹‰–Š‡”‡•‹†‡–‹ƒŽ
•–ƒ–—•‘ˆ–Š‡ϐ‹”‘”–Š‡ˆƒ‹Ž›Ǥ
Ȉ Š‡‡”‡ˆƒ…––Šƒ–ƒŽŽ–Š‡’ƒ”–‡”•ƒ”‡”‡•‹†‡–‹†‹ƒ†‘‡•‘–‡…‡••ƒ”‹Ž›Ž‡ƒ†–‘–Š‡…‘…Ž—•‹‘–Šƒ––Š‡
ϐ‹”‹•”‡•‹†‡–‹†‹ƒ„‡…ƒ—•‡–Š‡”‡ƒ›„‡…ƒ•‡•™Š‡”‡‡˜‡–Š‘—‰Š–Š‡’ƒ”–‡”•ƒ”‡”‡•‹†‡–‹†‹ƒǡ
…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ–Š‡ƒˆˆƒ‹”•‘ˆ–Š‡ϐ‹”‹•‡š‡”…‹•‡†ˆ”‘‘—–•‹†‡†‹ƒǤ
Ȉ ‹†—†‹˜‹†‡† ƒ‹Ž›™‘—Ž†‰‡‡”ƒŽŽ›„‡’”‡•—‡†–‘„‡”‡•‹†‡–‹†‹ƒ—Ž‡••–Š‡ƒ••‡••‡‡’”‘˜‡•
–‘–Š‡–ƒšƒ—–Š‘”‹–‹‡•–Šƒ––Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ‹–•ƒˆˆƒ‹”•‹••‹–—ƒ–‡†™Š‘ŽŽ›‘—–•‹†‡†‹ƒ†—”‹‰
–Š‡”‡Ž‡˜ƒ–ƒ……‘—–‹‰›‡ƒ”Ǥ
 48 Lesson 2 Ȉ EP-TL

Illustration 7:
 ǡ™Š‘•‡ƒˆˆƒ‹”•‘ˆ„—•‹‡••ƒ”‡…‘’Ž‡–‡Ž›…‘–”‘ŽŽ‡†ˆ”‘†‹ƒǤ‡–‡”‹‡‹–•‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”
ʹͲʹʹǦʹ͵ȋƒȌ‹ˆƒ”–ƒ‹•‹†‹ƒˆ‘”–Šƒ–›‡ƒ”ȋ„Ȍˆƒ”–ƒ‹•‹†‹ƒ„—–Š‡•ƒ–‹•ϐ‹‡•„‘–Š–Š‡ƒ††‹–‹‘ƒŽ
…‘†‹–‹‘•ȋ…Ȍˆƒ”–ƒ‹•‹†‹ƒǤ
Solution:
  ™‘—Ž† „‡ ‡•‹†‡– ‹ †‹ƒ ƒ• ‘–”‘Ž ƒ† ƒƒ‰‡‡– ‹• ™Š‘ŽŽ› •‹–—ƒ–‡† ‹ †‹ƒǤ ‡–‡”‹ƒ–‹‘ ‘ˆ
™Š‡–Š‡” ‹•‘”ǣ
ƒȌ  ‹•‹†‹ƒƒ•ƒ”–ƒ™‘—Ž†„‡•ƒ–‹•ˆ›‹‰„‘–Š–Š‡ƒ††‹–‹‘ƒŽ…‘†‹–‹‘•ȋ„‡…ƒ—•‡Š‡‹•ȌǤ
„Ȍ   ‹•  ‹ †‹ƒ ƒ• ƒ”–ƒ ‹• •ƒ–‹•ˆ›‹‰ „‘–Š –Š‡ ƒ††‹–‹‘ƒŽ …‘†‹–‹‘•Ǥ ƒ”–ƒǯ• ‡•‹†‡–‹ƒŽ •–ƒ–—•
†—”‹‰”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ȋ‹Ǥ‡Ǥ”‡•‹†‡–Ȁ‘Ǧ”‡•‹†‡–Ȍ‹•‹””‡Ž‡˜ƒ–Ǥ
…Ȍ  ‹•ƒ•ƒ”–ƒ†‘‡•‘–•ƒ–‹•ˆ›„‘–Š–Š‡ƒ††‹–‹‘ƒŽ…‘†‹–‹‘•Ǥ

Illustration 8:
ƒ”–ƒ‘ˆƒ‹†—†‹˜‹†‡† ƒ‹Ž›…‘‡•–‘†‹ƒ‡˜‡”››‡ƒ”ˆ‘”ƒ‹‹—’‡”‹‘†‘ˆ͸Ͳ†ƒ›•ƒ†ƒš‹—
ͻͳ†ƒ›•Ǥ‡–‡”‹‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡ ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹǤ
Solution:
‹†—†‹˜‹†‡† ƒ‹Ž›‹•”‡•‹†‡–•‹…‡–Š‡ƒ”–ƒŠƒ•…‘‡–‘†‹ƒˆ‘”ƒ–Ž‡ƒ•–͸Ͳ†ƒ›•„—––Š‡•–ƒ›‘ˆƒ”–ƒ†—”‹‰
•‡˜‡›‡ƒ”•…ƒ„‡ƒš‹—͸͵͹†ƒ›•Ǥ‡…‡ …ƒ„‡…‘•‹†‡”‡†ƒ•”‡•‹†‡–„—–‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–Ǥ

Illustration 9:
‹†—†‹˜‹†‡† ƒ‹Ž›‹•„‡‹‰ƒƒ‰‡†’ƒ”–Ž›ˆ”‘—„ƒ‹ƒ†’ƒ”–Ž›ˆ”‘ ƒ’ƒǤŠ‡ƒ”–ƒ‘ˆ ‹•ƒ
ˆ‘”‡‹‰…‹–‹œ‡ƒ†…‘‡•–‘˜‹•‹–‹†‹ƒ‡˜‡”››‡ƒ”•‹…‡ͳͻͺͲ‹–Š‡‘–Š‘ˆ’”‹Žˆ‘”ͳͲͷ†ƒ›•Ǥ
‡–‡”‹‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ ˆ‘”ʹͲʹʹǦʹ͵Ǥ
Solution:
‹…‡–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ–Š‡ƒˆˆƒ‹”•‘ˆ ‹•’ƒ”–Ž›ƒƒ‰‡†ˆ”‘—„ƒ‹ƒ†–Š‡”‡ˆ‘”‡ ‹•
”‡•‹†‡–‹†‹ƒǤ —”–Š‡”ǡ–Š‡ƒ”–ƒ‘ˆ ‹•ƒŽ•‘•ƒ–‹•ˆ›‹‰„‘–Š‘ˆƒ††‹–‹‘ƒŽ…‘†‹–‹‘•‘ˆ•‡…–‹‘͸ȋ͸Ȍȋ„Ȍƒ†
–Š‡”‡ˆ‘”‡ ‹•”‡•‹†‡–ƒ†‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒ†—”‹‰–Š‡ʹͲʹʹǦʹ͵Ǥ

TEST OF RESIDENCE FOR COMPANIES

ŽŽ†‹ƒ…‘’ƒ‹‡•™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘ʹȋʹ͸Ȍ‘ˆ–Š‡…–ƒ”‡ƒŽ™ƒ›•”‡•‹†‡–‹†‹ƒ”‡‰ƒ”†Ž‡••‘ˆ–Š‡
’Žƒ…‡‘ˆ‹–•’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–Ǥ
–Š‡…ƒ•‡‘ˆƒˆ‘”‡‹‰…‘’ƒ›–Š‡’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–‹•–Š‡„ƒ•‹•‘™Š‹…Š–Š‡…‘’ƒ›ǯ•”‡•‹†‡–‹ƒŽ
•–ƒ–—•‹•†‡–‡”‹ƒ„Ž‡Ǥ
……‘”†‹‰Ž›ǡƒ…‘’ƒ›•ŠƒŽŽ„‡•ƒ‹†–‘„‡”‡•‹†‡–‹†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ‹ˆȂ
ȋ‹Ȍ ‹–‹•ƒ†‹ƒ…‘’ƒ›Ǣ‘”
ȋ‹‹Ȍ ‹–•’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–ǡ‹–Šƒ–›‡ƒ”ǡ‹•‹†‹ƒǤ

–—•–„‡‘–‡†–Šƒ–‘Ž›ƒ‹†‹˜‹†—ƒŽ‘”ƒ …ƒ„‡”‡•‹†‡–ǡ‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‘”‘Ǧ”‡•‹†‡–‹†‹ƒǤ

ŽŽ‘–Š‡”ƒ••‡••‡•…ƒ„‡‡‹–Š‡””‡•‹†‡–‘”‘Ǧ”‡•‹†‡–‹†‹ƒ„—–…ƒ‘–„‡‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹–Š‡ƒ––‡”
‘ˆ–Š‡‹””‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”ƒŽŽ’—”’‘•‡•‘ˆ‹…‘‡–ƒšǤ
Š‡ƒ••‡••‡–•Š‘—Ž†ǡ‹‡˜‡”›…ƒ•‡ǡ„‡ƒ†‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡Žƒ™‹ˆ‘”…‡‹–Š‡”‡Ž‡˜ƒ–
ƒ••‡••‡–›‡ƒ”ƒ†‘––Š‡Žƒ™ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
ˆ‘”‡‹‰…‘’ƒ›™‹ŽŽ„‡”‡•‹†‡–‹†‹ƒ‹ˆ‹–•Žƒ…‡ˆˆˆ‡…–‹˜‡ƒƒ‰‡‡–ȋȌ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹•
 Lesson 2 Ȉ Basic Concept of Income Tax 49

‹†‹ƒǤ ‘”–Š‹•’—”’‘•‡ǡ–Š‡Žƒ…‡ˆˆˆ‡…–‹˜‡ƒƒ‰‡‡–‡ƒ•ƒ’Žƒ…‡™Š‡”‡‡›ƒƒ‰‡‡–ƒ†…‘‡”…‹ƒŽ

†‡…‹•‹‘•–Šƒ–ƒ”‡‡…‡••ƒ”›ˆ‘”–Š‡…‘†—…–‘ˆ–Š‡„—•‹‡••‘ˆƒ‡–‹–›ƒ•ƒ™Š‘Ž‡ƒ”‡ǡ‹•—„•–ƒ…‡ƒ†‡Ǥ

Žƒ…‡‘ˆˆˆ‡…–‹˜‡ƒƒ‰‡‡–ȋȌ‡ƒ•ƒ’Žƒ…‡™Š‡”‡‡›ƒƒ‰‡‡–ƒ†…‘‡”…‹ƒŽ†‡…‹•‹‘•ǡ‡…‡••ƒ”›
ˆ‘”–Š‡…‘†—…–‘ˆ–Š‡„—•‹‡••‘ˆƒ‡–‹–›ƒ•ƒ™Š‘Ž‡ƒ”‡ǡ‹•—„•–ƒ…‡ƒ†‡Ǥ
Noteǣ‹†‡‹”…—Žƒ”‘Ͳͺ‘ˆʹͲͳ͹†ƒ–‡†ʹ͵”† ‡„”—ƒ”›ǡʹͲͳ͹ǡ‹–Šƒ•„‡‡…Žƒ”‹ϐ‹‡†–Šƒ––Š‡’”‘˜‹•‹‘••ŠƒŽŽ
‘–ƒ’’Ž›–‘ƒ…‘’ƒ›Šƒ˜‹‰–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•‘ˆ•ǤͷͲ…”‘”‡‘”Ž‡••‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”ǤPlease refer
details: https://www.incometaxindia.gov.in/communications/circular/circular25_2017.pdf
Guiding Principles for Determination of Place of Effective Management (POEM) of a Company
Žƒ…‡ ‘ˆ ‡ˆˆ‡…–‹˜‡ ƒƒ‰‡‡– ȋȌ ‹• ƒ ‹–‡”ƒ–‹‘ƒŽŽ› ”‡…‘‰‹•‡† –‡•– ˆ‘” †‡–‡”‹ƒ–‹‘ ‘ˆ ”‡•‹†‡…‡ ‘ˆƒ
…‘’ƒ›‹…‘”’‘”ƒ–‡†‹ƒˆ‘”‡‹‰Œ—”‹•†‹…–‹‘Ǥ‘•–‘ˆ–Š‡–ƒš–”‡ƒ–‹‡•‡–‡”‡†‹–‘„›†‹ƒ”‡…‘‰‹•‡–Š‡…‘…‡’–
‘ˆ’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆ”‡•‹†‡…‡‘ˆƒ…‘’ƒ›ƒ•ƒ–‹‡Ǧ„”‡ƒ‡””—Ž‡ˆ‘”ƒ˜‘‹†ƒ…‡‘ˆ
†‘—„Ž‡–ƒšƒ–‹‘ǤŠ‡‰—‹†‹‰’”‹…‹’Ž‡•–‘„‡ˆ‘ŽŽ‘™‡†ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆƒ”‡‡—‡”ƒ–‡†ƒ•ˆ‘ŽŽ‘™•ǣ
…‘’ƒ›•ŠƒŽŽ„‡•ƒ‹†–‘„‡‡‰ƒ‰‡†‹Dzƒ…–‹˜‡„—•‹‡••‘—–•‹†‡†‹ƒdz‹ˆ–Š‡’ƒ••‹˜‡‹…‘‡‹•‘–‘”‡–ŠƒͷͲΨ
‘ˆ‹–•–‘–ƒŽ‹…‘‡Ǣƒ†
ȋ‹Ȍ Ž‡••–ŠƒͷͲΨ‘ˆ‹–•–‘–ƒŽƒ••‡–•ƒ”‡•‹–—ƒ–‡†‹†‹ƒǢƒ†
ȋ‹‹Ȍ Ž‡••–ŠƒͷͲΨ‘ˆ–‘–ƒŽ—„‡”‘ˆ‡’Ž‘›‡‡•ƒ”‡•‹–—ƒ–‡†‹†‹ƒ‘”ƒ”‡”‡•‹†‡–‹†‹ƒǢƒ†
ȋ‹‹‹Ȍ –Š‡’ƒ›”‘ŽŽ‡š’‡•‡•‹…—””‡†‘•—…Š‡’Ž‘›‡‡•‹•Ž‡••–ŠƒͷͲΨ‘ˆ‹–•–‘–ƒŽ’ƒ›”‘ŽŽ‡š’‡†‹–—”‡Ǥ

Explanation ǣ ‘”–Š‡ƒˆ‘”‡•ƒ‹†’—”’‘•‡ǣ

–Š‡‹…‘‡•ŠƒŽŽ„‡ •…‘’—–‡†ˆ‘”–ƒš’—”’‘•‡‹ƒ……‘”†ƒ…‡ ™‹–Š–Š‡Žƒ™•‘ˆ–Š‡…‘—–”›

‘ˆ ‹…‘”’‘”ƒ–‹‘Ǣ ‘” ƒ• ’‡” „‘‘• ‘ˆ ƒ……‘—–ǡ ™Š‡”‡ –Š‡ Žƒ™• ‘ˆ –Š‡
…‘—–”› ‘ˆ ‹…‘”’‘”ƒ–‹‘†‘ ‘– ”‡“—‹”‡•—…Šƒ…‘’—–ƒ–‹‘Ǥ
–Š‡˜ƒŽ—‡‘ˆƒ••‡–• Ȉ …ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽŽ›†‡’”‡…‹ƒ„Ž‡ƒ••‡–ǡ•ŠƒŽŽ„‡–Š‡ƒ˜‡”ƒ‰‡‘ˆ‹–•
˜ƒŽ—‡ˆ‘”–ƒš’—”’‘•‡•‹–Š‡…‘—–”›‘ˆ‹…‘”’‘”ƒ–‹‘‘ˆ–Š‡…‘’ƒ›
ƒ––Š‡„‡‰‹‹‰ƒ†ƒ–‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǣƒ†
Ȉ …ƒ•‡‘ˆƒ’‘‘Ž‘ˆϐ‹š‡†ƒ••‡–•„‡‹‰–”‡ƒ–‡†ƒ•ƒ„Ž‘…ˆ‘”
†‡’”‡…‹ƒ–‹‘ǡ•ŠƒŽŽ„‡–Š‡ƒ˜‡”ƒ‰‡‘ˆ‹–•˜ƒŽ—‡ˆ‘”–ƒš’—”’‘•‡•‹–Š‡
…‘—–”›‘ˆ‹…‘”’‘”ƒ–‹‘‘ˆ–Š‡…‘’ƒ›ƒ––Š‡„‡‰‹‹‰ƒ†ƒ–‡†
‘ˆ–Š‡›‡ƒ”Ǣ
Ȉ …ƒ•‡‘ˆƒ›‘–Š‡”ƒ••‡–ǡ•ŠƒŽŽ„‡‹–•˜ƒŽ—‡ƒ•’‡”„‘‘•‘ˆƒ……‘—–Ǥ
 50 Lesson 2 Ȉ EP-TL

–Š‡—„‡”‘ˆ‡’Ž‘›‡‡• –Š‡—„‡”‘ˆ‡’Ž‘›‡‡••ŠƒŽŽ„‡–Š‡ƒ˜‡”ƒ‰‡‘ˆ–Š‡—„‡” ‘ˆ‡’Ž‘›‡‡•

ƒ•ƒ––Š‡„‡‰‹‹‰ƒ†ƒ––Š‡‡†‘ˆ–Š‡›‡ƒ” ƒ†•ŠƒŽŽ‹…Ž—†‡’‡”•‘•ǡ
™Š‘–Š‘—‰Š‘–‡’Ž‘›‡††‹”‡…–Ž› „›–Š‡…‘’ƒ›ǡ’‡”ˆ‘”–ƒ•••‹‹Žƒ”
–‘–Š‘•‡’‡”ˆ‘”‡†„› –Š‡‡’Ž‘›‡‡•Ǥ
’ƒ›”‘ŽŽ –Š‡–‡”Dz’ƒ›”‘ŽŽdz•ŠƒŽŽ‹…Ž—†‡–Š‡…‘•–‘ˆ•ƒŽƒ”‹‡•ǡ™ƒ‰‡•ǡ„‘—•ƒ†ƒŽŽ
‘–Š‡”‡’Ž‘›‡‡…‘’‡•ƒ–‹‘‹…Ž—†‹‰”‡Žƒ–‡† ’‡•‹‘ƒ†•‘…‹ƒŽ…‘•–•
„‘”‡„›–Š‡‡’Ž‘›‡”Ǥ
‡ƒ†ˆϐ‹…‡ Dz‡ƒ†ˆϐ‹…‡dz‘ˆƒ…‘’ƒ›™‘—Ž†„‡–Š‡’Žƒ…‡™Š‡”‡–Š‡…‘’ƒ›•‡‹‘”
ƒƒ‰‡‡–ƒ†–Š‡‹”†‹”‡…–•—’’‘”–•–ƒˆˆƒ”‡Ž‘…ƒ–‡†‘”ǡ‹ˆ–Š‡›ƒ”‡Ž‘…ƒ–‡†
ƒ– ‘”‡ –Šƒ ‘‡ Ž‘…ƒ–‹‘ǡ –Š‡ ’Žƒ…‡ ™Š‡”‡ –Š‡› ƒ”‡ ’”‹ƒ”‹Ž› ‘”
’”‡†‘‹ƒ–Ž›Ž‘…ƒ–‡†Ǥ
…‘’ƒ›Š‡ƒ†‘ˆϐ‹…‡‹•‘–‡…‡••ƒ”‹Ž›–Š‡•ƒ‡ƒ•–Š‡’Žƒ…‡™Š‡”‡–Š‡
ƒŒ‘”‹–›‘ˆ‹–•‡’Ž‘›‡‡•™‘”‘”™Š‡”‡‹–•„‘ƒ”†–›’‹…ƒŽŽ›‡‡–•Ǥ
ƒ••‹˜‡‹…‘‡ Dzƒ••‹˜‡ ‹…‘‡dz ‘ˆ ƒ …‘’ƒ› •ŠƒŽŽ „‡ ƒ‰‰”‡‰ƒ–‡ ‘ˆǡ ‹…‘‡ ˆ”‘ –Š‡
–”ƒ•ƒ…–‹‘• ™Š‡”‡ „‘–Š –Š‡ ’—”…Šƒ•‡ ƒ† •ƒŽ‡ ‘ˆ ‰‘‘†• ‹• ˆ”‘ Ȁ –‘ ‹–•
ƒ••‘…‹ƒ–‡† ‡–‡”’”‹•‡•Ǣ ƒ† ‹…‘‡ „› ™ƒ› ‘ˆ ”‘›ƒŽ–›ǡ †‹˜‹†‡†ǡ …ƒ’‹–ƒŽ
‰ƒ‹•ǡ‹–‡”‡•–‘””‡–ƒŽ‹…‘‡Ǥ
Note ǣƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–•ŠƒŽŽ‘–„‡…‘•‹†‡”‡†–‘„‡’ƒ••‹˜‡
‹…‘‡‹…ƒ•‡‘ˆƒ…‘’ƒ›™Š‹…Š‹•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ„ƒ‹‰
‘”‹•ƒ’—„Ž‹…ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡƒ†‹–•ƒ…–‹˜‹–‹‡•ƒ”‡”‡‰—Žƒ–‡†ƒ••—…Š
—†‡”–Š‡ƒ’’Ž‹…ƒ„Ž‡Žƒ™•‘ˆ–Š‡…‘—–”›‘ˆ‹…‘”’‘”ƒ–‹‘Ǥ
‡‹‘”ƒƒ‰‡‡– Dz‡‹‘” ƒƒ‰‡‡–dz ‹ ”‡•’‡…– ‘ˆ ƒ …‘’ƒ› ‡ƒ• –Š‡ ’‡”•‘ ‘”
’‡”•‘•™Š‘ƒ”‡‰‡‡”ƒŽŽ›”‡•’‘•‹„Ž‡ˆ‘”†‡˜‡Ž‘’‹‰ƒ†ˆ‘”—Žƒ–‹‰‡›
•–”ƒ–‡‰‹‡•ƒ†’‘Ž‹…‹‡•ˆ‘”–Š‡…‘’ƒ›ƒ†ˆ‘”‡•—”‹‰‘”‘˜‡”•‡‡‹‰–Š‡
‡š‡…—–‹‘ ƒ† ‹’Ž‡‡–ƒ–‹‘ ‘ˆ –Š‘•‡ •–”ƒ–‡‰‹‡• ‘ ƒ ”‡‰—Žƒ” ƒ† ‘Ǧ
‰‘‹‰„ƒ•‹•ǤŠ‹Ž‡†‡•‹‰ƒ–‹‘ƒ›˜ƒ”›ǡ–Š‡•‡’‡”•‘•ƒ›‹…Ž—†‡ǣȋ‹Ȍ
ƒƒ‰‹‰ ‹”‡…–‘” ‘” Š‹‡ˆ š‡…—–‹˜‡ ˆϐ‹…‡”Ǣ ȋ‹‹Ȍ ‹ƒ…‹ƒŽ ‹”‡…–‘” ‘”
Š‹‡ˆ ‹ƒ…‹ƒŽˆϐ‹…‡”Ǣȋ‹‹‹ȌŠ‹‡ˆ’‡”ƒ–‹‰ˆϐ‹…‡”Ǣƒ†ȋ‹˜ȌŠ‡Š‡ƒ†•‘ˆ
˜ƒ”‹‘—•†‹˜‹•‹‘•‘”†‡’ƒ”–‡–•Ǥ

Š‡†‡–‡”‹ƒ–‹‘‘ˆ–Š‡™‹ŽŽ†‡’‡†—’‘–Š‡ˆƒ…–•ƒ†…‹”…—•–ƒ…‡•‘ˆƒ‰‹˜‡…ƒ•‡ǤŠ‡…‘…‡’–‹•
‘‡‘ˆ•—„•–ƒ…‡‘˜‡”ˆ‘”Ǥ–ƒ›„‡‘–‡†–Šƒ–ƒ‡–‹–›ƒ›Šƒ˜‡‘”‡–Šƒ‘‡’Žƒ…‡‘ˆƒƒ‰‡‡–ǡ„—–‹–…ƒ
Šƒ˜‡‘Ž›‘‡’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–ƒ–ƒ›’‘‹–‘ˆ–‹‡Ǥ‹…‡Dz”‡•‹†‡…‡dz‹•–‘„‡†‡–‡”‹‡†ˆ‘”‡ƒ…Š
›‡ƒ”ǡ™‹ŽŽƒŽ•‘„‡”‡“—‹”‡†–‘„‡†‡–‡”‹‡†‘›‡ƒ”–‘›‡ƒ”„ƒ•‹•ǤŠ‡’”‘…‡••‘ˆ†‡–‡”‹ƒ–‹‘‘ˆ
™‘—Ž†„‡’”‹ƒ”‹Ž›„ƒ•‡†‘–Š‡ˆƒ…–ƒ•–‘™Š‡–Š‡”‘”‘––Š‡…‘’ƒ›‹•‡‰ƒ‰‡†‹ƒ…–‹˜‡„—•‹‡••‘—–•‹†‡†‹ƒǤ
Determination of POEM if active business outside India
Š‡’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–‹…ƒ•‡‘ˆƒ…‘’ƒ›‡‰ƒ‰‡†‹ƒ…–‹˜‡„—•‹‡••‘—–•‹†‡†‹ƒ•ŠƒŽŽ„‡’”‡•—‡†
–‘„‡‘—–•‹†‡†‹ƒ‹ˆ–Š‡ƒŒ‘”‹–›‡‡–‹‰•‘ˆ–Š‡„‘ƒ”†‘ˆ†‹”‡…–‘”•‘ˆ–Š‡…‘’ƒ›ƒ”‡Š‡Ž†‘—–•‹†‡†‹ƒǤ‘™‡˜‡”ǡ
‹–‹•‡•–ƒ„Ž‹•Š‡†–Šƒ––Š‡‘ƒ”†‘ˆ†‹”‡…–‘”•‘ˆ–Š‡…‘’ƒ›ƒ”‡•–ƒ†‹‰ƒ•‹†‡ƒ†‘–‡š‡”…‹•‹‰–Š‡‹”’‘™‡”•‘ˆ
ƒƒ‰‡‡–ƒ†•—…Š’‘™‡”•ƒ”‡„‡‹‰‡š‡”…‹•‡†„›‡‹–Š‡”–Š‡Š‘Ž†‹‰…‘’ƒ›‘”ƒ›‘–Š‡”’‡”•‘ȋ•Ȍ”‡•‹†‡–
‹†‹ƒǡ–Š‡–Š‡’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–•ŠƒŽŽ„‡…‘•‹†‡”‡†–‘„‡‹†‹ƒǤ ‘”–Š‡’—”’‘•‡‘ˆ†‡–‡”‹‹‰
™Š‡–Š‡”–Š‡…‘’ƒ›‹•‡‰ƒ‰‡†‹ƒ…–‹˜‡„—•‹‡••‘—–•‹†‡†‹ƒǡ–Š‡ƒ˜‡”ƒ‰‡‘ˆ–Š‡†ƒ–ƒ‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†
–™‘›‡ƒ”•’”‹‘”–‘–Šƒ–•ŠƒŽŽ„‡–ƒ‡‹–‘ƒ……‘—–Ǥ…ƒ•‡–Š‡…‘’ƒ›Šƒ•„‡‡‹‡š‹•–‡…‡ˆ‘”ƒ•Š‘”–‡”’‡”‹‘†ǡ
–Š‡†ƒ–ƒ‘ˆ•—…Š’‡”‹‘†•ŠƒŽŽ„‡…‘•‹†‡”‡†Ǥ
Determination of POEM other than those that are engaged in active business outside India
–Š‹•…ƒ•‡ǡ–Š‡†‡–‡”‹ƒ–‹‘‘ˆ™‘—Ž†„‡ƒ–™‘•–ƒ‰‡’”‘…‡••ƒ•ˆ‘ŽŽ‘™•ǣ
First Stage ǣ †‡–‹ϐ‹…ƒ–‹‘ ‘” ƒ•…‡”–ƒ‹‹‰ –Š‡ ’‡”•‘ ‘” ’‡”•‘• ™Š‘ ƒ…–—ƒŽŽ› ƒ‡ –Š‡ ‡› ƒƒ‰‡‡–
ƒ†…‘‡”…‹ƒŽ†‡…‹•‹‘ˆ‘”…‘†—…–‘ˆ–Š‡…‘’ƒ›„—•‹‡••ƒ•ƒ™Š‘Ž‡Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 51

Second Stage ǣ‡–‡”‹ƒ–‹‘‘ˆ’Žƒ…‡™Š‡”‡–Š‡•‡†‡…‹•‹‘•ƒ”‡‹ˆƒ…–„‡‹‰ƒ†‡Ǥ

Note ǣŠ‡’Žƒ…‡™Š‡”‡–Š‡•‡ƒƒ‰‡‡–†‡…‹•‹‘•ƒ”‡–ƒ‡™‘—Ž†„‡‘”‡‹’‘”–ƒ––Šƒ–Š‡’Žƒ…‡™Š‡”‡ •—…Š
†‡…‹•‹‘• ƒ”‡ ‹’Ž‡‡–‡†Ǥ ‘” –Š‡ ’—”’‘•‡ ‘ˆ †‡–‡”‹ƒ–‹‘ ‘ˆ  ‹– ‹• –Š‡ •—„•–ƒ…‡ ™Š‹…Š ™‘—Ž† „‡
…‘…Ž—•‹˜‡”ƒ–Š‡”–Šƒ–Š‡ˆ‘”Ǥ
Some of the guiding principles for determining the POEM
ȋƒȌ Š‡Ž‘…ƒ–‹‘™Š‡”‡ƒ…‘’ƒ‹‡•‘ƒ”†”‡‰—Žƒ”Ž›‡‡–•ƒ†ƒ‡•†‡…‹•‹‘•ƒ›„‡–Š‡…‘’ƒ›’Žƒ…‡‘ˆ
‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–’”‘˜‹†‡†ǡ–Š‡‘ƒ”†”‡–ƒ‹•ƒ†‡š‡”…‹•‡•‹–•ƒ—–Š‘”‹–›–‘‰‘˜‡”–Š‡…‘’ƒ›Ǣƒ†
‹•—„•–ƒ…‡ǡƒ‡–Š‡‡›ƒƒ‰‡‡–ƒ†…‘‡”…‹ƒŽ†‡…‹•‹‘•‡…‡••ƒ”›ˆ‘”–Š‡…‘†—…–‘ˆ–Š‡…‘’ƒ›
„—•‹‡••ƒ•ƒ™Š‘Ž‡Ǥ‡”‡ˆ‘”ƒŽŠ‘Ž†‹‰‘ˆ„‘ƒ”†‡‡–‹‰•ƒ–ƒ’Žƒ…‡™‘—Ž† „›‹–•‡Žˆ‘–„‡…‘…Ž—•‹˜‡ˆ‘”
†‡–‡”‹ƒ–‹‘‘ˆ„‡‹‰Ž‘…ƒ–‡†ƒ––Šƒ–’Žƒ…‡Ǥ
Note ǣ…‘’ƒ›ǯ•„‘ƒ”†ƒ›†‡Ž‡‰ƒ–‡•‘‡‘”ƒŽŽ‘ˆ‹–•ƒ—–Š‘”‹–›–‘‘‡‘”‘”‡…‘‹––‡‡••—…Š ƒ•ƒ
‡š‡…—–‹˜‡ …‘‹––‡‡ …‘•‹•–‹‰ ‘ˆ ‡› ‡„‡”• ‘ˆ •‡‹‘” ƒƒ‰‡‡–Ǥ  –Š‡•‡ •‹–—ƒ–‹‘•ǡ –Š‡ Ž‘…ƒ–‹‘
™Š‡”‡–Š‡‡„‡”•‘ˆ–Š‡‡š‡…—–‹˜‡…‘‹––‡‡ƒ”‡„ƒ•‡†ƒ†™Š‡”‡–Šƒ–…‘‹––‡‡†‡˜‡Ž‘’• ƒ†ˆ‘”—Žƒ–‡•
–Š‡‡›•–”ƒ–‡‰‹‡•ƒ†’‘Ž‹…‹‡•ˆ‘”‡”‡ˆ‘”ƒŽƒ’’”‘˜ƒŽ„›–Š‡ˆ—ŽŽ„‘ƒ”†™‹ŽŽ‘ˆ–‡„‡ …‘•‹†‡”‡†–‘„‡–Š‡
…‘’ƒ›ǯ•’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–Ǥ
ȋ„Ȍ Š‡ Ž‘…ƒ–‹‘ ‘ˆ ƒ …‘’ƒ›ǯ• Š‡ƒ† ‘ˆϐ‹…‡ ™‹ŽŽ „‡ ƒ ˜‡”› ‹’‘”–ƒ– ˆƒ…–‘” ‹ –Š‡ †‡–‡”‹ƒ–‹‘ ‘ˆ –Š‡
…‘’ƒ›ǯ•’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–„‡…ƒ—•‡‹–‘ˆ–‡”‡’”‡•‡–•–Š‡’Žƒ…‡™Š‡”‡‡›…‘’ƒ›†‡…‹•‹‘•
ƒ”‡ƒ†‡ǤŠ‡ˆ‘ŽŽ‘™‹‰’‘‹–•‡‡†–‘„‡…‘•‹†‡”‡†ˆ‘”†‡–‡”‹‹‰–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡Š‡ƒ† ‘ˆϐ‹…‡‘ˆ–Š‡
…‘’ƒ›ǣ
 ˆ –Š‡ …‘’ƒ›ǯ• •‡‹‘” ƒƒ‰‡‡– ƒ† –Š‡‹” •—’’‘”– •–ƒˆˆ ƒ”‡ „ƒ•‡† ‹ ƒ •‹‰Ž‡ Ž‘…ƒ–‹‘ ƒ† –Šƒ–
Ž‘…ƒ–‹‘‹•Š‡Ž†‘—––‘–Š‡’—„Ž‹…ƒ•–Š‡…‘’ƒ›ǯ•’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••‘”Š‡ƒ†“—ƒ”–‡”•–Š‡ –Šƒ–
Ž‘…ƒ–‹‘ ‹• –Š‡ ’Žƒ…‡ ™Š‡”‡ Š‡ƒ† ‘ˆϐ‹…‡‹• Ž‘…ƒ–‡†Ǥ ˆ –Š‡ …‘’ƒ› ‹• ‘”‡ †‡…‡–”ƒŽ‹œ‡† ȋˆ‘” ‡šƒ’Ž‡
™Š‡”‡ ˜ƒ”‹‘—• ‡„‡”• ‘ˆ •‡‹‘” ƒƒ‰‡‡– ƒ› ‘’‡”ƒ–‡ǡ ˆ”‘ –‹‡ –‘ –‹‡ǡ ƒ– ‘ˆϐ‹ Ž‘…ƒ–‡† ‹ –Š‡
˜ƒ”‹‘—•…‘—–”‹‡•Ȍ–Š‡–Š‡…‘’ƒ›ǯ•Š‡ƒ†‘ˆϐ‹…‡™‘—Ž†„‡–Š‡Ž‘…ƒ–‹‘™Š‡”‡–Š‡•‡ •‡‹‘”ƒƒ‰‡”•ǣ
‹Ǥ ƒ”‡’”‹ƒ”‹Ž›‘”’”‡†‘‹ƒ–Ž›„ƒ•‡†Ǣ‘”
‹‹Ǥ ‘”ƒŽŽ›”‡–—”–‘ˆ‘ŽŽ‘™‹‰–”ƒ˜‡Ž–‘‘–Š‡”Ž‘…ƒ–‹‘•Ǣ‘”
‹‹‹Ǥ ‡‡–™Š‡ˆ‘”—Žƒ–‹‰‘”†‡…‹†‹‰‡›•–”ƒ–‡‰‹‡•ƒ†’‘Ž‹…‹‡•ˆ‘”–Š‡…‘’ƒ›ƒ•ƒ™Š‘Ž‡Ǥ
  •‹–—ƒ–‹‘• ™Š‡”‡ –Š‡ •‡‹‘” ƒƒ‰‡‡– ‹• •‘ †‡…‡–”ƒŽ‹•‡† –Šƒ– ‹– ‹• ‘– ’‘••‹„Ž‡ –‘ †‡–‡”‹‡ –Š‡
…‘’ƒ›ǯ•Š‡ƒ†‘ˆϐ‹…‡™‹–Šƒ”‡ƒ•‘ƒ„Ž‡†‡‰”‡‡‘ˆ…‡”–ƒ‹–›ǡ–Š‡Ž‘…ƒ–‹‘‘ˆƒ…‘’ƒ›ǯ•Š‡ƒ†‘ˆϐ‹…‡ ™‘—Ž†
‘–„‡‘ˆ—…Š”‡Ž‡˜ƒ…‡‹†‡–‡”‹‹‰–Šƒ–…‘’ƒ›ǯ•’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–Ǥ
ȋ…Ȍ Š‡ —•‡ ‘ˆ ‘†‡” –‡…Š‘Ž‘‰› ‹’ƒ…–• –Š‡ ’Žƒ…‡ ‘ˆ ‡ˆˆ‡…–‹˜‡ ƒƒ‰‡‡– ‹ ƒ› ™ƒ›•Ǥ – ‹• ‘ Ž‘‰‡”
‡…‡••ƒ”›ˆ‘”–Š‡’‡”•‘•–ƒ‹‰†‡…‹•‹‘–‘„‡’Š›•‹…ƒŽŽ›’”‡•‡–ƒ–ƒ’ƒ”–‹…—Žƒ”Ž‘…ƒ–‹‘ǤŠ‡”‡ˆ‘”‡’Š›•‹…ƒŽ
Ž‘…ƒ–‹‘ ‘ˆ „‘ƒ”† ‡‡–‹‰‘” ‡š‡…—–‹˜‡ …‘‹––‡‡ ‡‡–‹‰‘” ‡‡–‹‰ ‘ˆ •‡‹‘”ƒƒ‰‡‡– ƒ›‘– „‡
™Š‡”‡ –Š‡ ‡› †‡…‹•‹‘• ƒ”‡ ‹ •—„•–ƒ…‡ „‡‹‰ ƒ†‡Ǥ  •—…Š …ƒ•‡• –Š‡ ’Žƒ…‡ ™Š‡”‡ –Š‡ †‹”‡…–‘”• ‘” –Š‡
’‡”•‘•–ƒ‹‰–Š‡†‡…‹•‹‘•‘”ƒŒ‘”‹–›‘ˆ–Š‡—•—ƒŽŽ›”‡•‹†‡ƒ›ƒŽ•‘„‡ƒ”‡Ž‡˜ƒ– ˆƒ…–‘”Ǥ
 – ƒ› „‡ …Žƒ”‹ϐ‹‡† –Šƒ– †ƒ› –‘ †ƒ› ”‘—–‹‡ ‘’‡”ƒ–‹‘ƒŽ †‡…‹•‹‘• —†‡”–ƒ‡ „› Œ—‹‘” ƒ† ‹††Ž‡
ƒƒ‰‡‡–•ŠƒŽŽ‘–„‡”‡Ž‡˜ƒ–ˆ‘”–Š‡’—”’‘•‡‘ˆ†‡–‡”‹ƒ–‹‘‘ˆǤ

ˆ –Š‡ ƒ„‘˜‡ ˆƒ…–‘”• †‘ ‘– Ž‡ƒ† –‘ …Ž‡ƒ” ‹†‡–‹ϐ‹…ƒ–‹‘ ‘ˆ  –Š‡ –Š‡ ˆ‘ŽŽ‘™‹‰ •‡…‘†ƒ”› ˆƒ…–‘”• …ƒ „‡
…‘•‹†‡”‡†ǣ
‹Ǥ Žƒ…‡™Š‡”‡ƒ‹ƒ†•—„•–ƒ–‹ƒŽƒ…–‹˜‹–›‘ˆ–Š‡…‘’ƒ›‹•…ƒ””‹‡†‘—–Ǣ‘”
‹‹Ǥ Žƒ…‡™Š‡”‡–Š‡ƒ……‘—–‹‰”‡…‘”†•‘ˆ–Š‡…‘’ƒ›ƒ”‡‡’–Ǥ

Š‡ †‡–‡”‹ƒ–‹‘ ‘ˆ  ‹• –‘ „‡ „ƒ•‡† ‘ ƒŽŽ ”‡Ž‡˜ƒ– ˆƒ…–• ”‡Žƒ–‡† –‘ –Š‡ ƒƒ‰‡‡– ƒ† …‘–”‘Ž ‘ˆ –Š‡
 52 Lesson 2 Ȉ EP-TL

…‘’ƒ›ǡ ƒ† ‹• ‘– –‘ „‡ †‡–‡”‹‡† ‘ –Š‡ „ƒ•‹• ‘ˆ ‹•‘Žƒ–‡† ˆƒ…–• –Šƒ– „› ‹–•‡Žˆ †‘ ‘– ‡•–ƒ„Ž‹•Š ‡ˆˆ‡…–‹˜‡
ƒƒ‰‡‡–ǡƒ•‹ŽŽ—•–”ƒ–‡†„›–Š‡ˆ‘ŽŽ‘™‹‰‡šƒ’Ž‡•ǣ
‹Ǥ Š‡ˆƒ…––Šƒ–ƒˆ‘”‡‹‰…‘’ƒ›‹•…‘’Ž‡–‡Ž›‘™‡†„›ƒ†‹ƒ…‘’ƒ›™‹ŽŽ‘–„‡…‘…Ž—•‹˜‡‡˜‹†‡…‡
–Šƒ––Š‡…‘†‹–‹‘•ˆ‘”‡•–ƒ„Ž‹•Š‹‰‹†‹ƒŠƒ˜‡„‡‡•ƒ–‹•ϐ‹‡†Ǥ
‹‹Ǥ Š‡ˆƒ…––Šƒ––Š‡”‡‡š‹•–•ƒ‡”ƒ‡–•–ƒ„Ž‹•Š‡–‘ˆƒˆ‘”‡‹‰‡–‹–›‹†‹ƒ™‘—Ž†‹–•‡Žˆ‘–„‡…‘…Ž—•‹˜‡
‡˜‹†‡…‡–Šƒ––Š‡…‘†‹–‹‘•ˆ‘”‡•–ƒ„Ž‹•Š‹‰‹†‹ƒŠƒ˜‡„‡‡•ƒ–‹•ϐ‹‡†Ǥ
‹‹‹Ǥ Š‡ˆƒ…––Šƒ–‘‡‘”•‘‡‘ˆ–Š‡‹”‡…–‘”•‘ˆƒˆ‘”‡‹‰…‘’ƒ›”‡•‹†‡‹†‹ƒ™‹ŽŽ‘–„‡…‘…Ž—•‹˜‡‡˜‹†‡…‡
–Šƒ––Š‡…‘†‹–‹‘•ˆ‘”‡•–ƒ„Ž‹•Š‹‰‹†‹ƒŠƒ˜‡„‡‡•ƒ–‹•ϐ‹‡†Ǥ
‹˜Ǥ Š‡ˆƒ…–‘ˆǡŽ‘…ƒŽƒƒ‰‡‡–„‡‹‰•‹–—ƒ–‡†‹†‹ƒ‹”‡•’‡…–‘ˆƒ…–‹˜‹–‹‡•…ƒ””‹‡†‘—–„›ƒˆ‘”‡‹‰…‘’ƒ›
‹†‹ƒ™‹ŽŽ‘–ǡ„›‹–•‡Žˆǡ„‡…‘…Ž—•‹˜‡‡˜‹†‡…‡–Šƒ––Š‡…‘†‹–‹‘•ˆ‘”‡•–ƒ„Ž‹•Š‹‰Šƒ˜‡„‡‡•ƒ–‹•ϐ‹‡†Ǥ
˜Ǥ Š‡ ‡š‹•–‡…‡ ‹ †‹ƒ ‘ˆ •—’’‘”– ˆ—…–‹‘• –Šƒ– ƒ”‡ ’”‡’ƒ”ƒ–‘”› ƒ† ƒ—š‹Ž‹ƒ”› ‹ …Šƒ”ƒ…–‡” ™‹ŽŽ ‘– „‡
…‘…Ž—•‹˜‡‡˜‹†‡…‡–Šƒ––Š‡…‘†‹–‹‘•ˆ‘”‡•–ƒ„Ž‹•Š‹‰‹†‹ƒŠƒ˜‡„‡‡•ƒ–‹•ϐ‹‡†Ǥ

—”–Š‡”ǡ„ƒ•‡†‘–Š‡ˆƒ…–•ƒ†…‹”…—•–ƒ…‡•‹ˆ‹–‹•†‡–‡”‹‡†–Šƒ–†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”–Š‡‹•‹†‹ƒ
ƒ†ƒŽ•‘‘—–•‹†‡†‹ƒ–Š‡•ŠƒŽŽ„‡’”‡•—‡†–‘„‡‹†‹ƒ‹ˆ‹–Šƒ•„‡‡ƒ‹Ž›Ȁ’”‡†‘‹ƒ–Ž›‹†‹ƒǤ
Example 1ǣ‘’ƒ›‘Ǥ‹•ƒ•‘—”…‹‰‡–‹–›ǡˆ‘”ƒ†‹ƒ—Ž–‹ƒ–‹‘ƒŽ‰”‘—’ǡ‹…‘”’‘”ƒ–‡†‹…‘—–”›ƒ†‹•
ͳͲͲΨ•—„•‹†‹ƒ”›‘ˆ†‹ƒ…‘’ƒ›ȋ‘ǤȌǤŠ‡™ƒ”‡Š‘—•‡•ƒ†•–‘…‹–Š‡ƒ”‡–Š‡‘Ž›ƒ••‡–•‘ˆ–Š‡…‘’ƒ›
ƒ†ƒ”‡Ž‘…ƒ–‡†‹…‘—–”›ǤŽŽ–Š‡‡’Ž‘›‡‡•‘ˆ–Š‡…‘’ƒ›ƒ”‡ƒŽ•‘‹…‘—–”›ǤŠ‡ƒ˜‡”ƒ‰‡‹…‘‡™‹•‡
„”‡ƒ—’‘ˆ–Š‡…‘’ƒ›ǯ•–‘–ƒŽ‹…‘‡ˆ‘”–Š”‡‡›‡ƒ”•‹•ǣ
‹Ǥ ͵ͲΨ ‘ˆ ‹…‘‡ ‹• ˆ”‘ –”ƒ•ƒ…–‹‘ ™Š‡”‡ ’—”…Šƒ•‡• ƒ”‡ ƒ†‡ ˆ”‘ ’ƒ”–‹‡• ™Š‹…Š ƒ”‡ ‘Ǧƒ••‘…‹ƒ–‡†
‡–‡”’”‹•‡•ƒ†•‘Ž†–‘ƒ••‘…‹ƒ–‡†‡–‡”’”‹•‡•Ǣ
‹‹Ǥ ͵ͲΨ ‘ˆ ‹…‘‡ ‹• ˆ”‘ –”ƒ•ƒ…–‹‘ ™Š‡”‡ ’—”…Šƒ•‡• ƒ”‡ ƒ†‡ ˆ”‘ ƒ••‘…‹ƒ–‡† ‡–‡”’”‹•‡• ƒ† •‘Ž† –‘
ƒ••‘…‹ƒ–‡†‡–‡”’”‹•‡•Ǣ
‹‹‹Ǥ ͵ͲΨ‘ˆ‹…‘‡‹•ˆ”‘–”ƒ•ƒ…–‹‘™Š‡”‡’—”…Šƒ•‡•ƒ”‡ƒ†‡ˆ”‘ƒ••‘…‹ƒ–‡†‡–‡”’”‹•‡•ƒ†•‘Ž†–‘‘Ǧ
ƒ••‘…‹ƒ–‡†‡–‡”’”‹•‡•Ǣƒ†
‹˜Ǥ ͳͲΨ‘ˆ–Š‡‹…‘‡‹•„›™ƒ›‘ˆ‹–‡”‡•–Ǥ
Interpretation ǣ–Š‹•…ƒ•‡’ƒ••‹˜‡‹…‘‡‹•ͶͲΨ‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›ǤŠ‡’ƒ••‹˜‡‹…‘‡…‘•‹•–•‘ˆǣ
‹Ǥ ͵ͲΨ‹…‘‡ˆ”‘–Š‡–”ƒ•ƒ…–‹‘™Š‡”‡„‘–Š’—”…Šƒ•‡ƒ†•ƒŽ‡‹•ˆ”‘Ȁ–‘ƒ••‘…‹ƒ–‡†‡–‡”’”‹•‡•Ǣƒ†
‹‹Ǥ ͳͲΨ‹…‘‡ˆ”‘‹–‡”‡•–Ǥ
Š‡‘Ǥ•ƒ–‹•ϐ‹‡•–Š‡ϐ‹”•–”‡“—‹”‡‡–‘ˆ–Š‡–‡•–‘ˆƒ…–‹˜‡„—•‹‡••‘—–•‹†‡†‹ƒǤ‹…‡‘ƒ••‡–•‘”‡’Ž‘›‡‡•‘ˆ
‘Ǥƒ”‡‹†‹ƒ–Š‡‘–Š‡””‡“—‹”‡‡–•‘ˆ–Š‡–‡•–‹•ƒŽ•‘•ƒ–‹•ϐ‹‡†ǤŠ‡”‡ˆ‘”‡…‘’ƒ›‹•‡‰ƒ‰‡†‹ƒ…–‹˜‡„—•‹‡••
‘—–•‹†‡†‹ƒǤ
Example 2ǣŠ‡‘–Š‡”ˆƒ…–•”‡ƒ‹•ƒ‡ƒ•–Šƒ–‹šƒ’Ž‡ͳ™‹–Š–Š‡˜ƒ”‹ƒ–‹‘–Šƒ–‘ǤŠƒ•ƒ–‘–ƒŽ‘ˆͷͲ‡’Ž‘›‡‡•Ǥ
Ͷ͹‡’Ž‘›‡‡•ǡƒƒ‰‹‰–Š‡™ƒ”‡Š‘—•‡ǡ•–‘”‡‡‡’‹‰ƒ†ƒ……‘—–•‘ˆ–Š‡…‘’ƒ›ǡƒ”‡Ž‘…ƒ–‡†‹…‘—–”›ǤŠ‡
ƒƒ‰‹‰‹”‡…–‘”ȋȌǡŠ‹‡ˆš‡…—–‹˜‡ˆϐ‹…‡”ȋȌƒ†•ƒŽ‡•Š‡ƒ†ƒ”‡”‡•‹†‡–‹†‹ƒǤŠ‡–‘–ƒŽƒ—ƒŽ’ƒ›”‘ŽŽ
‡š’‡†‹–—”‡‘–Š‡•‡ͷͲ‡’Ž‘›‡‡•‹•‘ˆ•Ǥͷ…”‘”‡ǤŠ‡ƒ—ƒŽ’ƒ›”‘ŽŽ‡š’‡†‹–—”‡‹”‡•’‡…–‘ˆǡƒ†•ƒŽ‡•
Š‡ƒ†‹•‘ˆ•Ǥ͵…”‘”‡Ǥ
InterpretationǣŽ–Š‘—‰Š–Š‡ϐ‹”•–Ž‹„‘ˆƒ…–‹˜‡„—•‹‡••–‡•–‹••ƒ–‹•ϐ‹‡†„›‘Ǥƒ•‘Ž›ͶͲΨ‘ˆ‹–•–‘–ƒŽ‹…‘‡‹•
’ƒ••‹˜‡‹ƒ–—”‡Ǥ —”–Š‡”ǡ‘”‡–ŠƒͷͲΨ‘ˆ–Š‡‡’Ž‘›‡‡•ƒ”‡ƒŽ•‘•‹–—ƒ–‡†‘—–•‹†‡†‹ƒǤŽŽ–Š‡ƒ••‡–•ƒ”‡•‹–—ƒ–‡†
‘—–•‹†‡†‹ƒǤ‘™‡˜‡”ǡ–Š‡’ƒ›”‘ŽŽ‡š’‡†‹–—”‡‹”‡•’‡…–‘ˆ–Š‡ǡ–Š‡ƒ†–Š‡•ƒŽ‡•Š‡ƒ†„‡‹‰‡’Ž‘›‡‡•
”‡•‹†‡–‹†‹ƒ‡š…‡‡†•ͷͲΨ‘ˆ–Š‡–‘–ƒŽ’ƒ›”‘ŽŽ‡š’‡†‹–—”‡ǤŠ‡”‡ˆ‘”‡ǡ‘Ǥ‹•‘–‡‰ƒ‰‡†‹ƒ…–‹˜‡„—•‹‡••
‘—–•‹†‡†‹ƒǤ
Example 3ǣŠ‡„ƒ•‹…ˆƒ…–•ƒ”‡•ƒ‡ƒ•‹šƒ’Ž‡ͳǤ —”–Š‡”ˆƒ…–•ƒ”‡–Šƒ–ƒŽŽ–Š‡†‹”‡…–‘”•‘ˆ–Š‡‘Ǥƒ”‡†‹ƒ
”‡•‹†‡–•Ǥ—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ͷ‡‡–‹‰•‘ˆ–Š‡‘ƒ”†‘ˆ‹”‡…–‘”•ƒ”‡Š‡Ž†‘ˆ™Š‹…Š–™‘™‡”‡Š‡Ž†
‹†‹ƒƒ†͵‘—–•‹†‡†‹ƒ™‹–Š–™‘‹…‘—–”›ƒ†‘‡‹…‘—–”›Ǥ
Interpretationǣ‘Ǥ‹•‡‰ƒ‰‡†‹ƒ…–‹˜‡„—•‹‡••‘—–•‹†‡†‹ƒƒ•–Š‡ˆƒ…–•‹†‹…ƒ–‡†‹šƒ’Ž‡ͳ‡•–ƒ„Ž‹•ŠǤŠ‡
ƒŒ‘”‹–›‘ˆ„‘ƒ”†‡‡–‹‰•Šƒ˜‡„‡‡Š‡Ž†‘—–•‹†‡†‹ƒǤŠ‡”‡ˆ‘”‡ǡ–Š‡‘ˆ‘Ǥ•ŠƒŽŽ„‡’”‡•—‡†–‘„‡
‘—–•‹†‡†‹ƒǤ
 Lesson 2 Ȉ Basic Concept of Income Tax 53

For Detailed POEM Guidelines:

http ://www.incometaxindia.gov.in/news/circular06/2017.pdf

TEST OF RESIDENCE FOR FIRM AND AOP/BOI

¾ —•‹‡••ƒ†–Š‡™Š‘Ž‡‘ˆ‹–ƒ›„‡†‘‡‘—–•‹†‡†‹ƒƒ†›‡––Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ–Šƒ–„—•‹‡••
ƒ›„‡™Š‘ŽŽ›™‹–Š‹†‹ƒǤ
¾ –‹•‡–‹”‡Ž›‹””‡Ž‡˜ƒ–™Š‡”‡–Š‡„—•‹‡••‹•†‘‡ƒ†™Š‡”‡–Š‡‹…‘‡Šƒ•„‡‡‡ƒ”‡†ǤŠƒ–‹•”‡Ž‡˜ƒ–
ƒ†ƒ–‡”‹ƒŽ‹•ˆ”‘™Š‹…Š’Žƒ…‡Šƒ•–Šƒ–„—•‹‡••„‡‡…‘–”‘ŽŽ‡†ƒ†ƒƒ‰‡†Ǥ

Illustration 10:
Ƭ‘Ǥ‹•ƒ’ƒ”–‡”•Š‹’ϐ‹”™Š‘•‡‘’‡”ƒ–‹‘•ƒ”‡…ƒ””‹‡†‘—–‹†‹ƒǤ‘™‡˜‡”ǡƒŽŽ‡‡–‹‰•‘ˆ’ƒ”–‡”•–ƒ‡
’Žƒ…‡‘—–•‹†‡†‹ƒƒ•ƒŽŽ–Š‡’ƒ”–‡”•ƒ”‡•‡––Ž‡†ƒ„”‘ƒ†Ǥ‡–‡”‹‡‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆϐ‹”ˆ‘”ʹͲʹͳǦʹʹǤ
Solution :
 Ƭ ‘Ǥ ‹• ‘Ǧ‡•‹†‡– ‹ †‹ƒ †—”‹‰ ”‡Ž‡˜ƒ– ’”‡˜‹‘—• ›‡ƒ” ƒ• ‘–”‘Ž ƒ† ƒƒ‰‡‡– ȋ’Žƒ…‡ ™Š‡”‡
’‘Ž‹…›†‡…‹•‹‘•ƒ”‡–ƒ‡ǡŠ‡”‡‹–‹•–Š‡’Žƒ…‡™Š‡”‡‡‡–‹‰•ƒ”‡Š‡Ž†Ȍ‹•™Š‘ŽŽ›•‹–—ƒ–‡†‘—–•‹†‡†‹ƒǤ
…‡ –Š‡ ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ ƒ ‹†‹˜‹†—ƒŽ ‹• ‹†‡–‹ϐ‹‡†ǡ –Š‡ ”—Ž‡ ‘ˆ –ƒšƒ–‹‘ …‘—Ž† „‡ ƒ’’Ž‹‡† –‘ †‡–‡”‹‡
™Š‡–Š‡”ƒ‹…‘‡‹•–‘„‡–ƒš‡†‘”‘–Ǥ

MEANING AND SCOPE OF TOTAL INCOME [SECTION 5]

‘…ƒŽ…—Žƒ–‡–Š‡–‘–ƒŽ‹…‘‡ǡ‹–‹•‡••‡–‹ƒŽ–‘—†‡”•–ƒ†ǣ
Ǥ ‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ’‡”•‘„›™Š‘–Š‡‹…‘‡‹•‡ƒ”‡†vis-a-vis ’Žƒ…‡™Š‡”‡‹–‹•‡ƒ”‡†Ȁ”‡…‡‹˜‡† ‘”
†‡‡‡†–‘„‡‡ƒ”‡†Ȁ”‡…‡‹˜‡†
Ǥ ‹‡™Š‡–Š‡‹…‘‡‹•‡ƒ”‡†Ȁ”‡…‡‹˜‡†‘”†‡‡‡†–‘„‡‡ƒ”‡†‘””‡…‡‹˜‡†
Ǥ Šƒ–‹•–‘„‡‹…Ž—†‡†‹‹…‘‡

‡…–‹‘Ͷ‘ˆ–Š‡…–‹’‘•‡•ƒ…Šƒ”‰‡‘ˆ–ƒš‘–Š‡–‘–ƒŽ‘”–ƒšƒ„Ž‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ǤŠ‡‡ƒ‹‰ƒ† •…‘’‡
‘ˆ–Š‡‡š’”‡••‹‘‘ˆ–‘–ƒŽ‹…‘‡‹•…‘–ƒ‹‡†‹‡…–‹‘ͷǤŠ‡–‘–ƒŽ‹…‘‡‘ˆƒƒ••‡••‡‡…ƒ‘–„‡ †‡–‡”‹‡†
—Ž‡••™‡‘™–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǤŠ‡•…‘’‡‘ˆ–‘–ƒŽ‹…‘‡ƒ†…‘•‡“—‡–Ž›
–Š‡Ž‹ƒ„‹Ž‹–›–‘‹…‘‡Ǧ–ƒšƒŽ•‘†‡’‡†•—’‘–Š‡ˆ‘ŽŽ‘™‹‰ˆƒ…–•ǣ
ȋƒȌ ™Š‡–Š‡”–Š‡‹…‘‡ƒ……”—‡•‘”‹•”‡…‡‹˜‡†‹†‹ƒ‘”‘—–•‹†‡ǡ
ȋ„Ȍ –Š‡‡šƒ…–’Žƒ…‡ƒ†’‘‹–‘ˆ–‹‡ƒ–™Š‹…Š–Š‡ƒ……”—ƒŽ‘””‡…‡‹’–‘ˆ‹…‘‡–ƒ‡•’Žƒ…‡ǡƒ†
ȋ…Ȍ –Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
 54 Lesson 2 Ȉ EP-TL

…‘’‡‘ˆ–‘–ƒŽ‹…‘‡Šƒ•„‡‡†‡ϐ‹‡†‘–Š‡„ƒ•‹•‘ˆ‡•‹†‡–‹ƒŽ•–ƒ–—•
(A) Resident and Ordinarily Resident Assessee
 ……‘”†‹‰–‘—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͷ‘ˆ–Š‡…––Š‡–‘–ƒŽ‹…‘‡‘ˆƒ”‡•‹†‡–ƒ†‘”†‹ƒ”‹Ž›”‡•‹†‡–
ƒ••‡••‡‡™‘—Ž†…‘•‹•–‘ˆǣ
ȋ‹Ȍ ‹…‘‡”‡…‡‹˜‡†‘”†‡‡‡†–‘„‡”‡…‡‹˜‡†‹†‹ƒ†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”„›‘”‘„‡ŠƒŽˆ‘ˆ •—…Š
’‡”•‘Ǣ
ȋ‹‹Ȍ ‹…‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•‘”‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡–‘Š‹‹†‹ƒ†—”‹‰–Š‡ƒ……‘—–‹‰ ›‡ƒ”Ǣ
ȋ‹‹‹Ȍ ‹…‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•–‘Š‹‘—–•‹†‡†‹ƒ†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”Ǥ
 It is important to note that under clause (iii) only income accruing or arising outside India is included. Income
deemed to accrue or arise outside India is not includible.
(B) Resident but Not Ordinarily Resident In India
 ”‘˜‹•‘–‘•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͷ–Š‡–‘–ƒŽ‹…‘‡‹…ƒ•‡‘ˆ”‡•‹†‡–„—–‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒ
ȋ‹Ȍ ‹…‘‡”‡…‡‹˜‡†‘”†‡‡‡†–‘„‡”‡…‡‹˜‡†‹†‹ƒ†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”„›‘”‘„‡ŠƒŽˆ‘ˆ •—…Š
’‡”•‘Ǣ
ȋ‹‹Ȍ ‹…‘‡ ™Š‹…Š ƒ……”—‡• ‘” ƒ”‹•‡• ‘” ‹• †‡‡‡† –‘ ƒ……”—‡ ‘” ƒ”‹•‡ –‘ Š‹ ‹ †‹ƒ †—”‹‰ –Š‡ ƒ……‘—–‹‰
›‡ƒ”Ǣ
ȋ‹‹‹Ȍ ‹…‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•–‘Š‹‘—–•‹†‡†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹ˆ‹–‹•†‡”‹˜‡†ˆ”‘ ƒ
„—•‹‡••…‘–”‘ŽŽ‡†‹‘”ƒ’”‘ˆ‡••‹‘•‡–—’‹†‹ƒǤ
(C) Non-Resident
 —„Ǧ•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ͷ’”‘˜‹†‡•–Šƒ––Š‡–‘–ƒŽ‹…‘‡‘ˆƒ‘Ǧ”‡•‹†‡–™‘—Ž†…‘’”‹•‡‘ˆǣ
ȋ‹Ȍ ‹…‘‡”‡…‡‹˜‡†‘”†‡‡‡†–‘„‡”‡…‡‹˜‡†‹†‹ƒ‹–Š‡ƒ……‘—–‹‰›‡ƒ”„›‘”‘„‡ŠƒŽˆ‘ˆ•—…Š ’‡”•‘Ǣ
ȋ‹Ȍ ‹…‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•‘”‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡–‘Š‹‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—• ›‡ƒ”Ǥ

Rule of Taxation on the basis of Residential Status

Nature of Income ROR RNOR NR

…‘‡”‡…‡‹˜‡†‹†‹ƒȋŠ‡–Š‡”ƒ……”—‡†‹‘”‘—–•‹†‡†‹ƒȌ ƒš‡† ƒš‡† ƒš‡†

…‘‡ †‡‡‡† –‘ „‡ ”‡…‡‹˜‡† ‹ †‹ƒ ȋ Š‡–Š‡” ƒ……”—‡† ‹ ‘” ‘—–•‹†‡ ƒš‡† ƒš‡† ƒš‡†
†‹ƒȌ
…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰‹†‹ƒȋŠ‡–Š‡””‡…‡‹˜‡†‹†‹ƒ‘”‘—–•‹†‡ ƒš‡† ƒš‡† ƒš‡†
†‹ƒȌ
…‘‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒȋŠ‡–Š‡””‡…‡‹˜‡†‹†‹ƒ‘” ƒš‡† ƒš‡† ƒš‡†
‘—–•‹†‡†‹ƒ
…‘‡”‡…‡‹˜‡†ƒ†ƒ……”—‡†‘—–•‹†‡†‹ƒˆ”‘ƒ„—•‹‡••…‘–”‘ŽŽ‡†‘”ƒ ƒš‡† ƒš‡† ‘–ƒš‡†
’”‘ˆ‡••‹‘•‡–—’‹†‹ƒ
…‘‡”‡…‡‹˜‡†ƒ†ƒ……”—‡†‘—–•‹†‡†‹ƒˆ”‘ƒ„—•‹‡••…‘–”‘ŽŽ‡†ˆ”‘ ƒš‡† ‘– ‘–ƒš‡†
‘—–•‹†‡†‹ƒ‘”ƒ’”‘ˆ‡••‹‘•‡–—’‘—–•‹†‡†‹ƒ ƒš‡†
…‘‡ ‡ƒ”‡† ƒ† ”‡…‡‹˜‡† ‘—–•‹†‡ †‹ƒ „—– Žƒ–‡” ‘ ”‡‹––‡† –‘ †‹ƒ ‘– ‘– ‘–ƒš‡†
ȋŠ‡–Š‡”–ƒš‹…‹†‡…‡ƒ”‹•‡•ƒ––Š‡–‹‡‘ˆ”‡‹––ƒ…‡Ȍ ƒš‡† ƒš‡†

Explanation 1ǤǦ…‘‡ƒ……”—‹‰ ‘” ƒ”‹•‹‰ ‘—–•‹†‡ †‹ƒ•ŠƒŽŽ‘– „‡ †‡‡‡† –‘ „‡ ”‡…‡‹˜‡†‹ †‹ƒ ™‹–Š‹
–Š‡‡ƒ‹‰‘ˆ–Š‹••‡…–‹‘„›”‡ƒ•‘‘Ž›‘ˆ–Š‡ˆƒ…––Šƒ–‹–‹•–ƒ‡‹–‘ƒ……‘—–‹ƒ„ƒŽƒ…‡•Š‡‡–’”‡’ƒ”‡†‹
†‹ƒǤ
 Lesson 2 Ȉ Basic Concept of Income Tax 55

Explanation 2ǤǦ ‘”–Š‡”‡‘˜ƒŽ‘ˆ†‘—„–•ǡ‹–‹•Š‡”‡„›†‡…Žƒ”‡†–Šƒ–‹…‘‡™Š‹…ŠŠƒ•„‡‡‹…Ž—†‡†‹–Š‡ –‘–ƒŽ

‹…‘‡‘ˆƒ’‡”•‘‘–Š‡„ƒ•‹•–Šƒ–‹–Šƒ•ƒ……”—‡†‘”ƒ”‹•‡‘”‹•†‡‡‡†–‘Šƒ˜‡ƒ……”—‡†‘”ƒ”‹•‡–‘Š‹ •ŠƒŽŽ‘–
ƒ‰ƒ‹„‡•‘‹…Ž—†‡†‘–Š‡„ƒ•‹•–Šƒ–‹–‹•”‡…‡‹˜‡†‘”†‡‡‡†–‘„‡”‡…‡‹˜‡†„›Š‹‹†‹ƒǤ
INCOME RECEIVED OR DEEMED TO BE RECEIVED IN INDIA
Income received in India ǣ …‘‡ ”‡…‡‹˜‡† ‹ †‹ƒ ‹• –ƒšƒ„Ž‡ ”‡‰ƒ”†Ž‡•• ‘ˆ –Š‡ ƒ••‡••‡‡ǯ• ”‡•‹†‡–‹ƒŽ •–ƒ–—•
–Š‡”‡ˆ‘”‡‹–Šƒ•‰”‡ƒ–•‹‰‹ϐ‹…ƒ…‡Ǥ
ȋ‹Ȍ Š‡ ”‡…‡‹’– …‘–‡’Žƒ–‡† ˆ‘” –Š‹• ’—”’‘•‡ ”‡ˆ‡”• –‘ –Š‡ ϐ‹”•– ”‡…‡‹’– ‘ˆ –Š‡ ƒ‘—– ‹ “—‡•–‹‘ ƒ• –Š‡
‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ
 ‘”‹•–ƒ…‡ǡ‹ˆ”‡…‡‹˜‡•Š‹••ƒŽƒ”›ƒ–‡ŽŠ‹ƒ†•‡†•–Š‡•ƒ‡–‘Š‹•ˆƒ–Š‡”ǡ–Š‡•ƒŽƒ”›‹…‘‡‘ˆ‹• ƒ”‡…‡‹’–
ˆ‘”–ƒš’—”’‘•‡•‘Ž›‹–Š‡Šƒ†•‘ˆǢŠ‹•ˆƒ–Š‡”…ƒ‘–ƒŽ•‘„‡•ƒ‹†–‘Šƒ˜‡”‡…‡‹˜‡†‹…‘‡ ™Š‡Š‡”‡…‡‹˜‡•
ƒ’ƒ”–‘ˆ–Š‡‹…‘‡‘ˆǤ–Š‡Šƒ†•‘ˆǯ•ˆƒ–Š‡”‹–‹•‘Ž›ƒ”‡…‡‹’–‘ˆƒ•—‘ˆ ‘‡›„—–‘–ƒ”‡…‡‹’–‘ˆ
‹…‘‡Ǥ
ȋ‹‹Ȍ ‡–Š‘†‘ˆ……‘—–‹‰ǣŽ–Š‘—‰Š”‡…‡‹’–‘ˆ‹…‘‡‹•‘––Š‡•‘Ž‡–‡•–‘ˆ‹–•–ƒšƒ„‹Ž‹–›ǡ–Š‡”‡…‡‹’–‘ˆ‹…‘‡
™‘—Ž† „‡ –Š‡ ’”‹ƒ”› „ƒ•‹• ˆ‘” †‡–‡”‹‹‰ –Š‡ –ƒšƒ„‹Ž‹–› ‘ˆ –Š‡ ƒ‘—– ‹ …ƒ•‡• ™Š‡”‡ –Š‡ ƒ••‡••‡‡
ˆ‘ŽŽ‘™• –Š‡ …ƒ•Š •›•–‡ ‘ˆ ƒ……‘—–‹‰Ǣ Š‘™‡˜‡”ǡ ™Š‡”‡ –Š‡ ƒ••‡••‡‡ ˆ‘ŽŽ‘™• –Š‡ ‡”…ƒ–‹Ž‡ •›•–‡‘ˆ
ƒ……‘—–‹‰–Š‡‹…‘‡™‘—Ž†„‡…‘‡–ƒšƒ„Ž‡ƒ•–Š‡‹…‘‡‘ˆ–Š‡ƒ……‘—–‹‰›‡ƒ”‹™Š‹…Š‹–ˆƒŽŽ•†—‡–‘
–Š‡ƒ••‡••‡‡”‡‰ƒ”†Ž‡••‘ˆ–Š‡†ƒ–‡‘”’Žƒ…‡‘ˆ‹–•ƒ…–—ƒŽ”‡…‡‹’–Ǥ
ȋ‹‹‹Ȍ Š‹Ž‡…‘•‹†‡”‹‰–Š‡”‡…‡‹’–‘ˆ‹…‘‡ˆ‘”–ƒš’—”’‘•‡•„‘–Š–Š‡’Žƒ…‡ƒ†–Š‡†ƒ–‡‘ˆ‹–•”‡…‡‹’–—•– „‡
–ƒ‡ ‹–‘ ƒ……‘—–Ǥ Š‡ ‹…‘‡ ‹ “—‡•–‹‘ •Š‘—Ž† „‡ ‘– ‘Ž› ”‡…‡‹˜‡† †—”‹‰ –Š‡ ƒ……‘—–‹‰ ›‡ƒ”
”‡Ž‡˜ƒ– –‘ –Š‡ ƒ••‡••‡– ›‡ƒ” „—– —•– ƒŽ•‘ „‡ ”‡…‡‹˜‡† ‹ †‹ƒ ‹ ‘”†‡” –‘ …‘•–‹–—–‡ –Š‡ „ƒ•‹• ‘ˆ
–ƒšƒ–‹‘ǤŠ—•ǡ‹ˆƒ‹–‡‘ˆ‹…‘‡‹• ”‡…‡‹˜‡†‘—–•‹†‡†‹ƒƒ†ƒˆ–‡”ƒˆ‡™›‡ƒ”•‹• „”‘—‰Š–‹–‘†‹ƒ
–Š‡•—„•‡“—‡–”‡…‡‹’–‘ˆ–Š‡•ƒ‡ƒ‘—–‹†‹ƒ•Š‘—Ž†‘–„‡–ƒ‡ƒ•–Š‡„ƒ•‹•‘ˆ–ƒš‹‰–Š‡•ƒ‡
•‹…‡–Š‡•ƒ‡‹…‘‡…ƒ‘–„‡”‡…‡‹˜‡†–™‹…‡ƒ†‹–™‹ŽŽ„‡‘™ƒ• ‡‹––ƒ…‡•Ǥ
ȋ‹˜Ȍ ‘”–Š‡’—”’‘•‡‘ˆ–ƒšƒ–‹‘„‘–Šƒ…–—ƒŽƒ†…‘•–”—…–‹˜‡”‡…‡‹’–—•–„‡–ƒ‡‹–‘ƒ……‘—–Ǥ‡…‡‹’–„› •‘‡‘–Š‡”
’‡”•‘‘„‡ŠƒŽˆ‘ˆ–Š‡ƒ••‡••‡‡•Š‘—Ž†„‡–”‡ƒ–‡†ƒ•”‡…‡‹’–„›–Š‡ƒ••‡••‡‡ˆ‘”„‡‹‰–ƒš‡†‹Š‹•Šƒ†•Ǥ
ȋ˜Ȍ Š‡“—‡•–‹‘‘ˆ–ƒšƒ„‹Ž‹–›‘ˆƒ’ƒ”–‹…—Žƒ”‹…‘‡”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡†‡’‡†•—’‘–Š‡ƒ–—”‡ ‘ˆ‹…‘‡Ǥ
‘”‹•–ƒ…‡ǡ‹…‘‡ˆ”‘•ƒŽƒ”‹‡•ƒ†‹–‡”‡•–‘•‡…—”‹–‹‡•™‘—Ž†ƒ––”ƒ…–Ž‹ƒ„‹Ž‹–›–‘–ƒš ‹‡†‹ƒ–‡Ž›™Š‡‹–
ˆƒŽŽ•†—‡–‘–Š‡ƒ••‡••‡‡”‡‰ƒ”†Ž‡••‘ˆ‹–•ƒ…–—ƒŽ”‡…‡‹’–„›‘”‘„‡ŠƒŽˆ‘ˆ–Š‡ ƒ••‡••‡‡Ǥ
Income deemed to be received in India ǣƒ††‹–‹‘–‘–Š‡‹…‘‡ƒ…–—ƒŽŽ›”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡‘”‘
Š‹•„‡ŠƒŽˆǡ…‡”–ƒ‹‘–Š‡”‹…‘‡•‘–ƒ…–—ƒŽŽ›”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡ƒ†Ȁ‘”‘–”‡…‡‹˜‡††—”‹‰–Š‡”‡Ž‡˜ƒ–
’”‡˜‹‘—• ›‡ƒ”ǡ ƒ”‡ ƒŽ•‘ ‹…Ž—†‡† ‹ Š‹• –‘–ƒŽ ‹…‘‡ ˆ‘” ‹…‘‡ –ƒš ’—”’‘•‡•Ǥ —…Š ‹…‘‡• ƒ”‡ ‘™ ƒ•
‹…‘‡†‡‡‡†–‘„‡”‡…‡‹˜‡†Ǥ‘‡‘ˆ–Š‡‡šƒ’Ž‡•‘ˆ•—…Š‹…‘‡ƒ”‡ǣ
ȋ‹Ȍ ŽŽ•—•†‡†—…–‡†„›™ƒ›‘ˆ–ƒš‡•ƒ–•‘—”…‡ȋ‡…–‹‘ͳͻͺȌǤ
ȋ‹‹Ȍ …‘‡•‘ˆ‘–Š‡”’‡”•‘•™Š‹…Šƒ”‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡—†‡”‡…–‹‘•͸Ͳ–‘͸ͶǤ
ȋ‹‹‹Ȍ Š‡ƒ‘—–‘ˆ—‡š’Žƒ‹‡†‘”—”‡…‘”†‡†‹˜‡•–‡–•ȋ‡…–‹‘͸ͻȌǤ
ȋ‹˜Ȍ Š‡ƒ‘—–‘ˆ—‡š’Žƒ‹‡†‘”—”‡…‘”†‡†‘‡›•ǡ‡–…Ǥȋ‡…–‹‘͸ͻȌǤ
ȋ˜Ȍ Š‡ ƒ—ƒŽ ƒ……”‡–‹‘ ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ” –‘ –Š‡ „ƒŽƒ…‡ •–ƒ†‹‰ ƒ– –Š‡ …”‡†‹– ‘ˆ ƒ ‡’Ž‘›‡‡
’ƒ”–‹…‹’ƒ–‹‰ ‹ ƒ ‡…‘‰‹•‡† ”‘˜‹†‡– ˆ—† –‘ –Š‡ ‡š–‡– ’”‘˜‹†‡† ‹ —Ž‡ ͸ ‘ˆ ƒ”–  ‘ˆ –Š‡ ‘—”–Š
…Š‡†—Ž‡ ȏ‡…–‹‘ ͹ȋ‹ȌȐǤŠ‡ …‘–”‹„—–‹‘• ƒ†‡ „› –Š‡ ‡’Ž‘›‡” –‘ ‡…‘‰‹•‡† ”‘˜‹†‡– —† ‹‡š…‡••
‘ˆͳʹΨ‘ˆ–Š‡‡’Ž‘›‡‡••ƒŽƒ”›ƒ†–Š‡‹–‡”‡•–…”‡†‹–‡†–‘–Š‡”‘˜‹†‡– —†ƒ……‘—–‘ˆ–Š‡‡’Ž‘›‡‡‹
‡š…‡••‘ˆ–Š‡’”‡•…”‹„‡†”ƒ–‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡•ƒŽƒ”›‹…‘‡‘ˆ–Š‡‡’Ž‘›‡‡ǤŠ‹• ƒ‘—–‹•‘™ƒ•
ƒ—ƒŽƒ……”‡–‹‘Ǥ
ȋ˜‹Ȍ Š‡ –”ƒ•ˆ‡””‡† „ƒŽƒ…‡ ‹ ƒ ‡…‘‰‹•‡† ”‘˜‹†‡– —† –‘ –Š‡ ‡š–‡– ’”‘˜‹†‡† ‹ —Ž‡ ͳͳȋͶȌ ‘ˆ ƒ”– Ǧ
‘—”–Š…Š‡†—Ž‡ȏ‡…–‹‘͹ȋ‹‹ȌȐǤ
 Š‡’”‘˜‹†‡–ˆ—†‹•”‡…‘‰‹•‡†ˆ‘”–Š‡ϐ‹”•––‹‡‹ƒ’ƒ”–‹…—Žƒ”›‡ƒ”ǡ–Š‡‡š‹•–‹‰„ƒŽƒ…‡–‘–Š‡…”‡†‹– ‘ˆƒ
‡’Ž‘›‡‡ ‘ –Š‡ †ƒ–‡ ‘ˆ ”‡…‘‰‹–‹‘ǡ ™Š‹…Š ‹• …ƒ””‹‡† ‹–‘ –Š‡ ”‡…‘‰‹•‡† ’”‘˜‹†‡– ˆ—†ǡ ‹• …ƒŽŽ‡† –Š‡
 56 Lesson 2 Ȉ EP-TL

–”ƒ•ˆ‡””‡†„ƒŽƒ…‡ǤŠ‡ƒ‘—–‘ˆ–Š‡–”ƒ•ˆ‡””‡†„ƒŽƒ…‡ǡŽ‡••–Š‡‡’Ž‘›‡‡•‘™…‘–”‹„—–‹‘• ‹…Ž—†‡†
–Š‡”‡‹ǡ‹•†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡›‡ƒ”‹™Š‹…Š”‡…‘‰‹–‹‘–ƒ‡•’Žƒ…‡ǤŠ‡ƒ‘—– …‘–”‹„—–‡†„›
–Š‡‡’Ž‘›‡”–‘–Š‡’”‘˜‹†‡–ˆ—†ƒ†–Š‡‹–‡”‡•–‘Š‹•…‘–”‹„—–‹‘‹•‹…Ž—†‡†‹–Š‡ ‹…‘‡—†‡”–Š‡
Š‡ƒ†ƒŽƒ”‹‡•ƒ†–Š‡‹–‡”‡•–‘–Š‡…‘–”‹„—–‹‘•ƒ†‡„›–Š‡‡’Ž‘›‡‡‹•‹…Ž—†‡† ‹–Š‡‹…‘‡—†‡”–Š‡
Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǤ
ȋ˜‹‹Ȍ › †‹˜‹†‡† †‡…Žƒ”‡† „› ƒ ‘’ƒ› ‘” †‹•–”‹„—–‡† ‘” ’ƒ‹† „› ‹– ™‹–Š‹ –Š‡ ‡ƒ‹‰ ‘ˆ ‡…–‹‘ ʹȋʹʹȌ
ȏ‡…–‹‘ͺȋƒȌȐǤ
ȋ˜‹‹‹Ȍ ›‹–‡”‹†‹˜‹†‡†—…‘†‹–‹‘ƒŽŽ›ƒ†‡ƒ˜ƒ‹Žƒ„Ž‡„›–Š‡‘’ƒ›–‘–Š‡‡„‡”™Š‘‹•‡–‹–Ž‡†–‘ ‹–
ȏ‡…–‹‘ͺȋ„ȌȐǤ

INCOME ACCRUE OR ARISE IN INDIA

Š‡ƒ……”—ƒŽ‘ˆ‹…‘‡‹•†‹ˆˆ‡”‡–ƒ††‹•–‹…–ˆ”‘–Š‡”‡…‡‹’–‘ˆ‹…‘‡†‹•…—••‡†ƒ„‘˜‡Ǥ‘‡–‹‡•‹–Š‡…‘–‡š–
‘ˆƒ……”—ƒŽ‘”ƒ”‹•‡–Š‡™‘”†‡ƒ”‡†‹•—•‡†Ǥ’‡”•‘ƒ›„‡•ƒ‹†–‘Šƒ˜‡‡ƒ”‡†Š‹•‹…‘‡‹–Š‡•‡•‡–Šƒ–Š‡Šƒ•
…‘–”‹„—–‡†–‘–Š‡’”‘†—…–‹‘„›”‡†‡”‹‰‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǥ—– ‹‘”†‡”–Šƒ––Š‡‹…‘‡ƒ›„‡•ƒ‹†–‘Šƒ˜‡
ƒ……”—‡†–‘Š‹ǡƒƒ††‹–‹‘ƒŽ‡Ž‡‡–‹•‡…‡••ƒ”›ǡ–Šƒ–‹•ǡŠ‡—•– Šƒ˜‡…”‡ƒ–‡†ƒ†‡„–‹Š‹•ˆƒ˜‘—”Ǥ…‘‡‹••ƒ‹†–‘
ƒ……”—‡™Š‡‹–…‘‡•‹–‘‡š‹•–‡…‡ˆ‘”–Š‡ϐ‹”•––‹‡‘”ƒ– –Š‡’‘‹–‘ˆ–‹‡™Š‡–Š‡”‹‰Š––‘”‡…‡‹˜‡–Š‡‹…‘‡
ƒ”‹•‡•ƒŽ–Š‘—‰Š–Š‡”‹‰Š–ƒ›„‡‡š‡”…‹•‡†‘”‡š‡”…‹•ƒ„Ž‡ ƒ– ƒ ˆ—–—”‡ †ƒ–‡Ǥ …‘‡ ‹• •ƒ‹† –‘ „‡ ”‡…‡‹˜‡† ™Š‡ ‹–
”‡ƒ…Š‡•–Š‡ƒ••‡••‡‡Ǥ Š‡–Š‡”‹‰Š––‘”‡…‡‹˜‡–Š‡ ‹…‘‡„‡…‘‡•˜‡•–‡†‹–Š‡ƒ••‡••‡‡ǡ‹–‹••ƒ‹†–‘ƒ……”—‡‘”
ƒ”‹•‡Ǥ
…‘‡‹••ƒ‹†–‘ƒ……”—‡‘Ž›–‘–Šƒ–’‡”•‘™Š‘‹•Žƒ™ˆ—ŽŽ›‡–‹–Ž‡†–‘–Šƒ–‹…‘‡Ǥ…‘‡ƒ……”—‡•ƒ––Š‡’Žƒ…‡
™Š‡”‡–Š‡•‘—”…‡‘ˆ–Š‡‹…‘‡ ‹••‹–—ƒ–‡†ǡ™Š‹…Š ƒ›‘”ƒ›‘–„‡–Š‡•ƒ‡ƒ•–Š‡’Žƒ…‡ ˆ”‘™Š‹…Š –Š‡
„—•‹‡••ƒ…–‹˜‹–‹‡•ƒ”‡…ƒ””‹‡†‘Ǥ‘”ƒŽŽ›ǡ‹…‘‡ƒ……”—‡•ƒ––Š‡’Žƒ…‡™Š‡”‡–Š‡…‘–”ƒ…–›‹‡Ž†‹‰–Š‡‹…‘‡
‹•‡–‡”‡†‹–‘ƒ†ˆ‘”–Š‹•’—”’‘•‡–Š‡…‘–”ƒ…–•Š‘—Ž†„‡–ƒ‡–‘Šƒ˜‡„‡‡‡–‡”‡†‹–‘ƒ––Š‡’Žƒ…‡™Š‡”‡
–Š‡‘ˆˆ‡”‹•ƒ……‡’–‡†Ǥ

CASE LAW
1. Income in ”‡•’‡…–‘ˆ•ƒŽ‡‘ˆϐŽƒ–•ƒ……”—‡†™Š‡’‘••‡••‹‘‘ˆϐŽƒ–™ƒ•‰‹˜‡ƒ†‘–™Š‡ƒŽŽ‘–‡–
letter was issued [Assessment year 2006-07] [in favour of assesse]
CIT ˜ǤMillennium Estate (P.) Ltd. [2018]
 Š‡ ƒ••‡••‡ …ƒ””‹‡† ‘ „—•‹‡•• ƒ• ƒ …‘–”ƒ…–‘” ƒ† †‡˜‡Ž‘’‡”Ǥ —”‹‰ •…”—–‹›ǡ –Š‡ ••‡••‹‰ ˆϐ‹…‡”
ˆ‘—† –Šƒ– ƒ ƒ‘—– ™ƒ• •Š‘™ ƒ• ƒ†˜ƒ…‡• ”‡…‡‹˜‡† ˆ”‘ ‹–• „—›‡”•Ǥ Š‡ ƒ••‡••‡ •—„‹––‡† –Šƒ–
ƒˆ‘”‡•ƒ‹† ƒ‘—–• ™‡”‡ ”‡…‡‹˜‡† ƒ• ƒ†˜ƒ…‡ ƒ– –‹‡ ‘ˆ ƒŽŽ‘–‡– ‘ ͳͶǦ͵ǦʹͲͲ͹ ƒ† –Šƒ– ˆ—”–Š‡”
…‘•‹†‡”ƒ–‹‘ ™ƒ• ”‡…‡‹˜‡† ‘ ͳǦͶǦʹͲͲ͹ǡ ™Š‡ ’‘••‡••‹‘ ‘ˆ ϐŽƒ– ™ƒ• ‰‹˜‡ǡ ƒ†ǡ –Š—•ǡ •ƒ‹† •— ™ƒ•
…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹‡š–ƒ••‡••‡–›‡ƒ”Ǥ‘™‡˜‡”ǡ–Š‡••‡••‹‰ˆϐ‹…‡”–”‡ƒ–‡†•ƒ‹†•—ƒ•ƒ……”—‡†
‹…‘‡ ‹ •—„Œ‡…– ƒ••‡••‡– ›‡ƒ” Š‘Ž†‹‰ –Šƒ– •ƒŽ‡ ‘ˆ ϐŽƒ–• Šƒ† –ƒ‡ ’Žƒ…‡ ™Š‡ –Š‡› ™‡”‡ ƒŽŽ‘––‡†
—†‡”ƒƒŽŽ‘–‡–Ž‡––‡”Ǥ
 ‡Ž†–Šƒ–ˆ”‘–Š‡ƒŽŽ‘–‡–Ž‡––‡”ƒ†’‘••‡••‹‘Ž‡––‡”ǡ‹–™ƒ•˜‡”›‡˜‹†‡––Šƒ–’‘••‡••‹‘‘ˆϐŽƒ–•™ƒ•
‰‹˜‡‘”‡…‡‹’–‘ˆ–‘–ƒŽ…‘•‹†‡”ƒ–‹‘ǡ‹Ǥ‡Ǥǡ‘Ž›‘ͳǦͶǦʹͲͲ͹ǤŠ‡•ƒ‹†ƒ‘—–™ƒ•ƒƒ†˜ƒ…‡†—”‹‰
•—„Œ‡…–ƒ••‡••‡–›‡ƒ”ƒ†•ƒ‹†‹…‘‡ƒ……”—‡†ƒ•‹…‘‡‹ƒ••‡••‡–›‡ƒ”ʹͲͲ͹ǦͲͺǤ
2. Income from Non Performing Assets (NPA) should be assessed on cash basis and not on mercantile
basis, despite assessee following mercantile system of accounting [Assessment year 2010-11] [in
Favour of assessee]
Principal CIT v. Davangere Urban Co-operative Bank Ltd. [2018]
 …‘‡ ˆ”‘  •Š‘—Ž† „‡ ƒ••‡••‡† ‘ …ƒ•Š „ƒ•‹• ƒ† ‘– ‘ ‡”…ƒ–‹Ž‡ „ƒ•‹•ǡ †‡•’‹–‡ –Š‡ ƒ••‡••‡
ˆ‘ŽŽ‘™‹‰‡”…ƒ–‹Ž‡•›•–‡‘ˆƒ……‘—–‹‰Ǥ˜‹‡™‘ˆƒˆ‘”‡•ƒ‹†Ž‡‰ƒŽ’‘•‹–‘ǡ–Š‡••‡••‹‰ˆϐ‹…‡”™ƒ•
‘– Œ—•–‹ϐ‹‡†‹ „”‹‰‹‰ –‘ –ƒš ‘ ‹–‡”‡•– ‘ ‘Ǧ’‡”ˆ‘”‹‰ ƒ••‡–• ‘ ƒ……”—ƒŽ „ƒ•‹• Œ—•– „‡…ƒ—•‡ –Š‡
ƒ••‡••‡‡ˆ‘ŽŽ‘™‡†Š›„”‹†•›•–‡‘ˆƒ……‘—–‹‰Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 57

INCOME DEEMED TO ACCRUE OR ARISE IN INDIA [SECTION 9]

‡”–ƒ‹–›’‡•‘ˆ‹…‘‡ƒ”‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒ‡˜‡–Š‘—‰Š–Š‡›ƒ›ƒ…–—ƒŽŽ›ƒ……”—‡‘”ƒ”‹•‡‘—–•‹†‡
†‹ƒǤŠ‡…ƒ–‡‰‘”‹‡•‘ˆ‹…‘‡™Š‹…Šƒ”‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒƒ”‡ǣ
ȋͳȌ ›‹…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘ƒƒ••‡••‡‡‹ƒ›’Žƒ…‡‘—–•‹†‡†‹ƒ™Š‡–Š‡”†‹”‡…–Ž›‘”‹†‹”‡…–Ž›
ȋƒȌ –Š”‘—‰Š‘”ˆ”‘ƒ›„—•‹‡••…‘‡…–‹‘‹†‹ƒǡ
ȋ„Ȍ –Š”‘—‰Š‘”ˆ”‘ƒ›’”‘’‡”–›‹†‹ƒǡ
ȋ…Ȍ –Š”‘—‰Š‘”ˆ”‘ƒ›ƒ••‡–‘”•‘—”…‡‘ˆ‹…‘‡‹†‹ƒ‘”
ȋ†Ȍ –Š”‘—‰Š–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–•‹–—ƒ–‡†‹†‹ƒȏ‡…–‹‘ͻȋͳȌȋ‹ȌȐǤ
ȋʹȌ …‘‡ǡ™Š‹…ŠˆƒŽŽ•—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dzǡ‹ˆ‹–‹•‡ƒ”‡†‹†‹ƒǤƒŽƒ”›’ƒ›ƒ„Ž‡ˆ‘”•‡”˜‹…‡”‡†‡”‡†‹
†‹ƒ™‘—Ž†„‡–”‡ƒ–‡†ƒ•‡ƒ”‡†‹†‹ƒǤ —”–Š‡”ǡƒ›‹…‘‡—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dz’ƒ›ƒ„Ž‡ˆ‘””‡•–’‡”‹‘†
‘”Ž‡ƒ˜‡’‡”‹‘†™Š‹…Š‹•’”‡…‡†‡†ƒ†•—……‡‡†‡†„›•‡”˜‹…‡•”‡†‡”‡†‹†‹ƒǡƒ†ˆ‘”•’ƒ”–‘ˆ–Š‡•‡”˜‹…‡
…‘–”ƒ…–‘ˆ‡’Ž‘›‡–ǡ•ŠƒŽŽ„‡”‡‰ƒ”†‡†ƒ•‹…‘‡‡ƒ”‡†‹†‹ƒȏ‡…–‹‘ͻȋͳȌȋ‹‹ȌȐǤ
ȋ͵Ȍ …‘‡ˆ”‘ƒŽƒ”‹‡•™Š‹…Š‹•’ƒ›ƒ„Ž‡„›–Š‡
‘˜‡”‡––‘ƒ…‹–‹œ‡‘ˆ†‹ƒˆ‘”•‡”˜‹…‡•”‡†‡”‡†‘—–•‹†‡
†‹ƒȋ‘™‡˜‡”ǡƒŽŽ‘™ƒ…‡•ƒ†’‡”“—‹•‹–‡•’ƒ‹†‘—–•‹†‡†‹ƒ„›–Š‡
‘˜‡”‡–‹•‡š‡’–Ȍȏ‡…–‹‘ͻȋͳȌȋ‹‹‹ȌȐǤ
ȋͶȌ ‹˜‹†‡†’ƒ‹†„›ƒ†‹ƒ…‘’ƒ›‘—–•‹†‡†‹ƒȏ‡…–‹‘ͻȋͳȌȋ‹˜ȌȐǤ
ȋͷȌ –‡”‡•–ȏ‡…–‹‘ͻȋͳȌȋ˜ȌȐ
ȋ͸Ȍ ‘›ƒŽ–›ȏ‡…–‹‘ͻȋͳȌȋ˜‹ȌȐ
ȋ͹Ȍ ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•ȏ‡…–‹‘ͻȋͳȌȋ˜‹‹ȌȐ

(a) Income by virtue of Business Connection :

…ƒ•‡•™Š‡”‡ƒŽŽ–Š‡‘’‡”ƒ–‹‘•‘”ƒ…–‹˜‹–‹‡•‘ˆƒ„—•‹‡••ƒ”‡‘–…ƒ””‹‡†‘‹†‹ƒ„—–ƒ’ƒ”–‘ˆ–Š‡ƒ”‹•‡„›
˜‹”–—‡‘ˆ–Š‡„—•‹‡••…‘‡…–‹‘‹†‹ƒǡ–Š‡‹…‘‡™Š‹…Š‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǡ•Š‘—Ž†„‡–ƒ‡
–‘ „‡ ‘Ž› –Šƒ– ’ƒ”– ™Š‹…Š …‘—Ž† ”‡ƒ•‘ƒ„Ž› „› ƒ––”‹„—–‡† –‘ –Š‡ ‘’‡”ƒ–‹‘• …ƒ””‹‡† ‘ ‹ †‹ƒǤ —Ž‡ ͳͲ ‘ˆ –Š‡
…‘‡Ǧ–ƒš—Ž‡•…‘–ƒ‹•–Š‡„ƒ•‹•‘™Š‹…Š–Š‡‹…‘‡ƒ––”‹„—–ƒ„Ž‡–‘–Š‡‘’‡”ƒ–‹‘•…ƒ””‹‡†‘—–‹†‹ƒ…‘—Ž†
„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǤ
‘™‡˜‡”ǡ™Š‡”‡ƒ•—„•–ƒ–‹ƒŽ’ƒ”–‘ˆƒ‘Ǧ”‡•‹†‡–•‘—–’—–‹••‘Ž†‹–Š‡†‹ƒƒ”‡––Š”‘—‰Š„”‘‡”•–‘˜ƒ”‹‘—•
…—•–‘‡”•‹†‹ƒǡ‘”‡”‡”‡†‡”‹‰‘ˆ•‡”˜‹…‡•‘—–•‹†‡†‹ƒ–‘ƒ’‡”•‘…ƒ””›‹‰‘„—•‹‡••‹†‹ƒ†‘‡•‘–
ƒ‘—––‘ƒ„—•‹‡••…‘‡…–‹‘‹†‹ƒǤ
‹‹Žƒ”Ž›ǡ™Š‡”‡ƒ†‹ƒ‡š’‘”–‡”•‡ŽŽ‹‰‰‘‘†•–Š”‘—‰Š‘Ǧ”‡•‹†‡–•‡ŽŽ‹‰ƒ‰‡–•ǡ”‡…‡‹˜‡••ƒŽ‡’”‹…‡‹†‹ƒǡ
…”‡†‹–•…‘‹••‹‘‘•ƒŽ‡•–‘‘Ǧ”‡•‹†‡–ƒ‰‡–•‹Š‹•„‘‘•‘ˆƒ……‘—–ƒ†”‡‹–•–Š‡ƒ‘—––‘–Š‡Žƒ–‡”ǡ
•—…Š…‘‹••‹‘–‘‘Ǧ”‡•‹†‡–•‹•‡‹–Š‡””‡…‡‹˜‡†‘”†‡‡‡†–‘„‡”‡…‡‹˜‡†‹†‹ƒ‘”†‡‡‡†–‘ƒ……”—‡‘”
ƒ”‹•‡‹†‹ƒ[C.I.T. v. Toshoku Ltd. (1980) 125 ITR p. 525 (S.C.)]Ǥ
THE MEANING OF THE EXPRESSION “BUSINESS CONNECTION”
Š‡‡š’”‡••‹‘„—•‹‡••…‘‡…–‹‘‹…Ž—†‡•ǣ
ȋ‹Ȍ –Š‡ƒ‹–‡ƒ…‡‘ˆƒ„”ƒ…Š‘ˆϐ‹…‡ǡˆƒ…–‘”›ǡƒ‰‡…›ǡ”‡…‡‹˜‡”•Š‹’ǡƒƒ‰‡‡–‘”‘–Š‡”‡•–ƒ„Ž‹•Š‡–ˆ‘”–Š‡
’—”…Šƒ•‡‘”•ƒŽ‡‘ˆ‰‘‘†•‘”ˆ‘”–”ƒ•ƒ…–‹‰ƒ›‘–Š‡”„—•‹‡••Ǣ
ȋ‹‹Ȍ –Š‡ ‡”‡…–‹‘ ‘ˆ ƒ ˆƒ…–‘”› ™Š‡”‡ –Š‡ ”ƒ™ ’”‘†—…–• ’—”…Šƒ•‡† Ž‘…ƒŽŽ› ƒ”‡ ’”‘…‡••‡† ‘” …‘˜‡”–‡† ‹–‘ •‘‡
ˆ‘”•—‹–ƒ„Ž‡ˆ‘”‡š’‘”–‘—–•‹†‡†‹ƒǢ
ȋ‹‹‹Ȍ ƒ’’‘‹–‹‰ ƒ ƒ‰‡– ‘” ƒ‰‡–• ‹ †‹ƒ ˆ‘” –Š‡ •›•–‡ƒ–‹… ƒ† ”‡‰—Žƒ” ’—”…Šƒ•‡ ‘ˆ ”ƒ™ ƒ–‡”‹ƒŽ• ‘” ‘–Š‡”
…‘‘†‹–‹‡•‘”ˆ‘”–Š‡•ƒŽ‡‘ˆ–Š‡‘Ǧ”‡•‹†‡–ǯ•‰‘‘†•ǡ‘”ˆ‘”ƒ›‘–Š‡”’—”’‘•‡Ǣ
ȋ‹˜Ȍ –Š‡ˆ‘”ƒ–‹‘‘ˆƒ…Ž‘•‡ϐ‹ƒ…‹ƒŽƒ••‘…‹ƒ–‹‘„‡–™‡‡ƒ”‡•‹†‡–ƒ†ƒ‘Ǧ”‡•‹†‡–…‘’ƒ›™Š‹…Šƒ›
‘”ƒ›‘–„‡”‡Žƒ–‡†–‘‘‡ƒ‘–Š‡”ƒ•ƒŠ‘Ž†‹‰ƒ†•—„•‹†‹ƒ”›…‘’ƒ›Ǣ
 58 Lesson 2 Ȉ EP-TL

ȋ˜Ȍ –Š‡ ˆ‘”ƒ–‹‘ ‘ˆ ƒ •—„•‹†‹ƒ”› …‘’ƒ› –‘ •‡ŽŽ ‘” ‘–Š‡”™‹•‡ †‡ƒŽ ™‹–Š –Š‡ ’”‘†—…–• ‘ˆ –Š‡ ‘Ǧ”‡•‹†‡–
’ƒ”‡–…‘’ƒ›Ǣ
ȋ˜‹Ȍ –Š‡ ‰”ƒ– ‘ˆ ƒ …‘–‹—‹‰ Ž‹…‡…‡ –‘ ƒ ‘Ǧ”‡•‹†‡– ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ‡š’Ž‘‹–ƒ–‹‘ ˆ‘” ’”‘ϐ‹– ‘ˆ ƒ ƒ••‡–
„‡Ž‘‰‹‰–‘–Š‡‘Ǧ”‡•‹†‡–‡˜‡–Š‘—‰Š–Š‡–”ƒ•ƒ…–‹‘‹“—‡•–‹‘ƒ›„‡–”‡ƒ–‡†ƒ•ƒ
Ȉ —•‹‡•• …‘‡…–‹‘ •ŠƒŽŽ ‹…Ž—†‡ ƒ› „—•‹‡•• ƒ…–‹˜‹–› …ƒ””‹‡† ‘—– –Š”‘—‰Š ƒ ’‡”•‘ ƒ…–‹‰ ‘
„‡ŠƒŽˆ‘ˆ–Š‡‘Ǧ”‡•‹†‡–Ǥ
Ȉ ‡—•–Šƒ˜‡ƒƒ—–Š‘”‹–›™Š‹…Š‹•Šƒ„‹–—ƒŽŽ›‡š‡”…‹•‡†–‘…‘…Ž—†‡…‘–”ƒ…–•‘„‡ŠƒŽˆ‘ˆ–Š‡‘Ǧ
”‡•‹†‡–Ǥ‘™‡˜‡”ǡ‹ˆŠ‹•ƒ…–‹˜‹–‹‡•ƒ”‡Ž‹‹–‡†–‘–Š‡’—”…Šƒ•‡‘ˆ‰‘‘†•‘”‡”…Šƒ†‹•‡ˆ‘”–Š‡ ‘Ǧ
”‡•‹†‡–ǡ–Š‹•’”‘˜‹•‹‘™‹ŽŽ‘–ƒ’’Ž›Ǥ
Ȉ Š‡”‡Š‡Šƒ•‘•—…Šƒ—–Š‘”‹–›ǡ„—–Šƒ„‹–—ƒŽŽ›ƒ‹–ƒ‹•‹†‹ƒƒ•–‘…‘ˆ‰‘‘†•‘”‡”…Šƒ†‹•‡ ˆ”‘
™Š‹…ŠŠ‡”‡‰—Žƒ”Ž›†‡Ž‹˜‡”•‰‘‘†•‘”‡”…Šƒ†‹•‡‘„‡ŠƒŽˆ‘ˆ–Š‡‘Ǧ”‡•‹†‡–ǡƒ„—•‹‡•• …‘‡…–‹‘
‹•‡•–ƒ„Ž‹•Š‡†Ǥ
Ȉ —•‹‡•• …‘‡…–‹‘ ‹• ƒŽ•‘ ‡•–ƒ„Ž‹•Š‡† ™Š‡”‡ Š‡ Šƒ„‹–—ƒŽŽ› •‡…—”‡• ‘”†‡”• ‹ †‹ƒǡ ƒ‹Ž› ‘”
™Š‘ŽŽ› ˆ‘” –Š‡ ‘Ǧ”‡•‹†‡–Ǥ —”–Š‡”ǡ –Š‡”‡ ƒ› „‡ •‹–—ƒ–‹‘• ™Š‡ ‘–Š‡” ‘Ǧ”‡•‹†‡–• …‘–”‘Ž –Š‡
ƒ„‘˜‡Ǧ‡–‹‘‡† ‘Ǧ”‡•‹†‡–Ǥ ‡…‘†Ž›ǡ –Š‹• ‘Ǧ”‡•‹†‡– ƒ› ƒŽ•‘ …‘–”‘Ž ‘–Š‡” ‘Ǧ”‡•‹†‡–•Ǥ
Š‹”†Ž›ǡ ƒŽŽ ‘–Š‡” ‘Ǧ”‡•‹†‡–• ƒ› „‡ •—„Œ‡…– –‘ –Š‡ •ƒ‡ …‘‘ …‘–”‘Žǡ ƒ• –Šƒ– ‘ˆ –Š‡ ‘Ǧ
”‡•‹†‡–Ǥ  ƒŽŽ –Š‡ –Š”‡‡ •‹–—ƒ–‹‘•ǡ „—•‹‡•• …‘‡…–‹‘ ‹• ‡•–ƒ„Ž‹•Š‡†ǡ ™Š‡”‡ ƒ ’‡”•‘ Šƒ„‹–—ƒŽŽ›
•‡…—”‡•‘”†‡”•‹†‹ƒǡƒ‹Ž›‘”™Š‘ŽŽ›ˆ‘”•—…Š‘Ǧ”‡•‹†‡–•Ǥš…‡’–‹‘ǣDz—•‹‡••…‘‡…–‹‘dzǡ
Š‘™‡˜‡”ǡ•ŠƒŽŽ‘–„‡Š‡Ž†–‘„‡‡•–ƒ„Ž‹•Š‡†‹…ƒ•‡•™Š‡”‡–Š‡‘Ǧ”‡•‹†‡–…ƒ””‹‡•‘„—•‹‡••–Š”‘—‰Š
ƒ„”‘‡”ǡ‰‡‡”ƒŽ…‘‹••‹‘ƒ‰‡–‘”ƒ›‘–Š‡”ƒ‰‡–‘ˆƒ‹†‡’‡†‡–•–ƒ–—•ǡ‹ˆ•—…Š ƒ’‡”•‘‹•
ƒ…–‹‰‹–Š‡‘”†‹ƒ”›…‘—”•‡‘ˆŠ‹•„—•‹‡••Ǥ„”‘‡”ǡ‰‡‡”ƒŽ…‘‹••‹‘ƒ‰‡–‘” ƒ›‘–Š‡”ƒ‰‡–
•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡ƒ‹†‡’‡†‡–•–ƒ–—•™Š‡”‡Š‡†‘‡•‘–™‘”ƒ‹Ž› ‘”™Š‘ŽŽ›ˆ‘”–Š‡‘Ǧ
”‡•‹†‡–Ǥ

Special Points: ‘ŽŽ‘™‹‰š’Žƒƒ–‹‘•ŠƒŽŽ„‡‹•‡”–‡†—Ȁ•ͻ„›–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǡ™Ǥ‡ǤˆǤͳǦͶǦʹͲʹʹǣ

‘”–Š‡”‡‘˜ƒŽ‘ˆ†‘—„–•ǡ‹–‹•Š‡”‡„›†‡…Žƒ”‡†–Šƒ––Š‡•‹‰‹ϐ‹…ƒ–‡…‘‘‹…’”‡•‡…‡‘ˆƒ‘Ǧ”‡•‹†‡–‹†‹ƒ•ŠƒŽŽ
…‘•–‹–—–‡Dz„—•‹‡••…‘‡…–‹‘dz‹†‹ƒƒ†Dz•‹‰‹ϐ‹…ƒ–‡…‘‘‹…’”‡•‡…‡dzˆ‘”–Š‹•’—”’‘•‡ǡ•ŠƒŽŽ‡ƒǣ
ȋƒȌ –”ƒ•ƒ…–‹‘‹”‡•’‡…–‘ˆƒ›‰‘‘†•ǡ•‡”˜‹…‡•‘”’”‘’‡”–›…ƒ””‹‡†‘—–„›ƒ‘Ǧ”‡•‹†‡–™‹–Šƒ›’‡”•‘ ‹
†‹ƒ ‹…Ž—†‹‰ ’”‘˜‹•‹‘ ‘ˆ †‘™Ž‘ƒ† ‘ˆ †ƒ–ƒ ‘” •‘ˆ–™ƒ”‡ ‹ †‹ƒǡ ‹ˆ –Š‡ ƒ‰‰”‡‰ƒ–‡ ‘ˆ ’ƒ›‡–•
ƒ”‹•‹‰ ˆ”‘ •—…Š –”ƒ•ƒ…–‹‘ ‘” –”ƒ•ƒ…–‹‘• †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‡š…‡‡†• •—…Š ƒ‘—– ƒ• ƒ› „‡
’”‡•…”‹„‡†Ǣ‘”
ȋ„Ȍ •›•–‡ƒ–‹…ƒ†…‘–‹—‘—••‘Ž‹…‹–‹‰‘ˆ„—•‹‡••ƒ…–‹˜‹–‹‡•‘”‡‰ƒ‰‹‰‹‹–‡”ƒ…–‹‘™‹–Š•—…Š—„‡” ‘ˆ
—•‡”•‹†‹ƒǡƒ•ƒ›„‡’”‡•…”‹„‡†ǣ
 ”‘˜‹†‡†–Šƒ––Š‡–”ƒ•ƒ…–‹‘•‘”ƒ…–‹˜‹–‹‡••ŠƒŽŽ…‘•–‹–—–‡•‹‰‹ϐ‹…ƒ–‡…‘‘‹…’”‡•‡…‡‹†‹ƒǡ™Š‡–Š‡”
‘”‘–Ȃ
ȋ‹Ȍ –Š‡ƒ‰”‡‡‡–ˆ‘”•—…Š–”ƒ•ƒ…–‹‘•‘”ƒ…–‹˜‹–‹‡•‹•‡–‡”‡†‹†‹ƒǢ‘”
ȋ‹‹Ȍ –Š‡‘Ǧ”‡•‹†‡–Šƒ•ƒ”‡•‹†‡…‡‘”’Žƒ…‡‘ˆ„—•‹‡••‹†‹ƒǢ‘”
ȋ‹‹‹Ȍ –Š‡‘Ǧ”‡•‹†‡–”‡†‡”••‡”˜‹…‡•‹†‹ƒǣ

”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– ‘Ž› •‘ —…Š ‘ˆ ‹…‘‡ ƒ• ‹• ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ –”ƒ•ƒ…–‹‘• ‘” ƒ…–‹˜‹–‹‡• ”‡ˆ‡””‡† –‘ ‹
…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ•ŠƒŽŽ„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǤ
‘ŽŽ‘™‹‰š’Žƒƒ–‹‘•ŠƒŽŽƒŽ•‘„‡‹•‡”–‡†—Ȁ•ͻ„›–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǡ™Ǥ‡ǤˆǤͳǦͶǦʹͲʹͳǣ
‘” –Š‡ ”‡‘˜ƒŽ ‘ˆ †‘—„–•ǡ ‹– ‹• Š‡”‡„› †‡…Žƒ”‡† –Šƒ– –Š‡ ‹…‘‡ ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ ‘’‡”ƒ–‹‘• …ƒ””‹‡† ‘—– ‹
†‹ƒǡ•ŠƒŽŽ‹…Ž—†‡‹…‘‡ˆ”‘Ȅ
ȋ‹Ȍ •—…Š ƒ†˜‡”–‹•‡‡– ™Š‹…Š –ƒ”‰‡–• ƒ …—•–‘‡” ™Š‘ ”‡•‹†‡• ‹ †‹ƒ ‘” ƒ …—•–‘‡” ™Š‘ ƒ……‡••‡• –Š‡
ƒ†˜‡”–‹•‡‡––Š”‘—‰Š‹–‡”‡–’”‘–‘…‘Žƒ††”‡••Ž‘…ƒ–‡†‹†‹ƒǢ
 Lesson 2 Ȉ Basic Concept of Income Tax 59

ȋ‹‹Ȍ •ƒŽ‡‘ˆ†ƒ–ƒ…‘ŽŽ‡…–‡†ˆ”‘ƒ’‡”•‘™Š‘”‡•‹†‡•‹†‹ƒ‘”ˆ”‘ƒ’‡”•‘™Š‘—•‡•‹–‡”‡–’”‘–‘…‘Žƒ††”‡••

Ž‘…ƒ–‡†‹†‹ƒǢƒ†
ȋ‹‹‹Ȍ •ƒŽ‡‘ˆ‰‘‘†•‘”•‡”˜‹…‡•—•‹‰†ƒ–ƒ…‘ŽŽ‡…–‡†ˆ”‘ƒ’‡”•‘™Š‘”‡•‹†‡•‹†‹ƒ‘”ˆ”‘ƒ’‡”•‘™Š‘ —•‡•
‹–‡”‡–’”‘–‘…‘Žƒ††”‡••Ž‘…ƒ–‡†‹†‹ƒǤ
‘—•‹‡••…‘‡…–‹‘‹†‹ƒ‹ˆ‘ŽŽ‘™‹‰…ƒ•‡•‘ˆ‘Ǧ‡•‹†‡–Ǥ
ͳǤ ƒš š‡’–‹‘ ˆ‘” ‡…‘—”ƒ‰‹‰ š’‘”–ǣ ‘” –Š‡ ’—”’‘•‡ ‘ˆ ‡…‘—”ƒ‰‹‰ ‡š’‘”–•ǡ ƒ •’‡…‹ϐ‹… –ƒš…‘…‡••‹‘
Šƒ• „‡‡ ‰‹˜‡„› ’”‘˜‹†‹‰ –Šƒ– ‘‹…‘‡ •ŠƒŽŽ „‡†‡‡‡† –‘ ƒ……”—‡ ‘”ƒ”‹•‡ ‹ †‹ƒ –‘ƒ‘Ǧ”‡•‹†‡–
–Š”‘—‰Š ‘” ˆ”‘ Š‹• ‘’‡”ƒ–‹‘• ™Š‹…Š ƒ”‡ …‘ϐ‹‡† –‘ –Š‡ ’—”…Šƒ•‡ ‘ˆ ‰‘‘†• ‹ †‹ƒ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ
‡š’‘”–Ǥ‘•‡“—‡–Ž›ǡ–Š‡‡š‡’–‹‘™‘—Ž†‘–„‡ƒ˜ƒ‹Žƒ„Ž‡‹ˆ–Š‡‰‘‘†•’—”…Šƒ•‡†‹†‹ƒƒ”‡•‘Ž†‹†‹ƒ
‘” ƒ”‡ ‘– ‡š’‘”–‡† ‘—–•‹†‡ †‹ƒǤ —”–Š‡”ǡ ‹ˆ –Š‡‘Ǧ”‡•‹†‡– ™‘”• —’ –Š‡ ”ƒ™Ǧƒ–‡”‹ƒŽ•‹–‘ϐ‹‹•Š‡†‘”
•‡‹Ǧϐ‹‹•Š‡†’”‘†—…–•ǡ–Š‡‡š‡’–‹‘™‘—Ž†„‡™‹–Š†”ƒ™ƒ†Š‡™‘—Ž†„‡…‘‡…Šƒ”‰‡ƒ„Ž‡‘•—…Š’‘”–‹‘
‘ˆ–Š‡’”‘ϐ‹–•ƒ•‹•ƒ––”‹„—–ƒ„Ž‡–‘Š‹•ƒ—ˆƒ…–—”‹‰‹–‹†‹ƒǤ
ʹǤ ’‡”ƒ–‹‘•…‘ϐ‹‡†–‘…‘ŽŽ‡…–‹‘‘ˆ‡™•ƒ†˜‹‡™•ˆ‘”–”ƒ•‹••‹‘‘—–•‹†‡†‹ƒ„›‘”‘„‡ŠƒŽˆ‘ˆ‘
‡•‹†‡–™Š‘‹•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ”—‹‰‡™•ƒ‰‡…›‘”‘ˆ’—„Ž‹•Š‹‰‡™•’ƒ’‡”•ǡ ƒ‰ƒœ‹‡•
‘”‘—–ƒ†‘—–•ƒŽ‡„›–Š‡’ƒ”–‹‡•…‘…‡”‡†Œ‘—”ƒŽ•Ǣ
͵Ǥ ’‡”ƒ–‹‘•…‘ϐ‹‡†–‘•Š‘‘–‹‰‘ˆ…‹‡ƒ–‘‰”ƒ’Šϐ‹Ž•‹†‹ƒ‹ˆ•—…Š‘Ǧ‡•‹†‡–‹•ǣ
ȋƒȌ ƒ†‹˜‹†—ƒŽǦŠ‡•Š‘—Ž†‘–„‡ƒ…‹–‹œ‡‘ˆ†‹ƒǢ‘”
ȋ„Ȍ  ƒϐ‹”Ǧ–Š‡ϐ‹”•Š‘—Ž†‘–Šƒ˜‡ƒ›’ƒ”–‡”™Š‘‹•ƒ…‹–‹œ‡‘ˆ†‹ƒ‘”™Š‘‹•”‡•‹†‡–‹†‹ƒǢ‘”
ȋ…Ȍ  ƒ …‘’ƒ› Ǧ –Š‡ …‘’ƒ› †‘‡• ‘– Šƒ˜‡ ƒ› •Šƒ”‡Š‘Ž†‡” ™Š‘ ‹• ƒ …‹–‹œ‡ ‘ˆ †‹ƒ ‘” ™Š‘ ‹•
”‡•‹†‡–‹†‹ƒǤ
(b) Income arising from any asset or property in India:
Ȉ …‘‡ƒ”‹•‹‰‹ƒˆ‘”‡‹‰…‘—–”›ˆ”‘ƒ›’”‘’‡”–›•‹–—ƒ–‡†‹†‹ƒ™‘—Ž†„‡†‡‡‡†–‘ƒ……”—‡‘” ƒ”‹•‡
‹†‹ƒǤ
Ȉ  –Š‹• …‘–‡š–ǡ –Š‡ –‡” ’”‘’‡”–› †‘‡• ‘– ”‡ˆ‡” –‘ Š‘—•‡ ’”‘’‡”–› ƒŽ‘‡ „—– ‹– ”‡ˆ‡”• –‘ ƒŽŽ –ƒ‰‹„Ž‡
’”‘’‡”–‹‡•™Š‡–Š‡”‘˜ƒ„Ž‡‘”‹‘˜ƒ„Ž‡Ǥ ‘”‹•–ƒ…‡ǡ–Š‡”‡–‘”Š‹”‡…Šƒ”‰‡•ˆ‘”–Š‡—•‡‘ˆ„—‹Ž†‹‰• ‘”
ƒ…Š‹‡”›‘ˆ–Š‡ƒ••‡••‡‡™Š‹…Šǡ—†‡”ƒƒ‰”‡‡‡–ƒ”‡’ƒ›ƒ„Ž‡‘Ž›‘—–•‹†‡†‹ƒǡ™‘—Ž†„‡ †‡‡‡†–‘
ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǤ
Ȉ …‘‡ƒ”‹•‹‰–Š”‘—‰Š‘”ˆ”‘ƒ›ƒ••‡–‘”•‘—”…‡‘ˆ‹…‘‡‹†‹ƒ™‘—Ž†ƒŽ•‘„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡
‹†‹ƒǤ
Ȉ –Š‹•…‘–‡š–ǡ–Š‡–‡”•‘—”…‡‡ƒ•‘–ƒŽ‡‰ƒŽ…‘…‡’–„—–•‘‡–Š‹‰™Š‹…Šƒ’”ƒ…–‹…ƒŽƒ™‘—Ž† ”‡‰ƒ”†
ƒ•ƒ”‡ƒŽ•‘—”…‡‘ˆ‹…‘‡Ǥ
Ȉ Š‡–‡”’”‘’‡”–›†‘‡•‘–”‡ˆ‡”–‘–Š‡’”‘’‡”–›†‡ƒŽ–™‹–Š„›‡…–‹‘•ʹʹƒ†ʹ͵ǡ„—–‹–‹…Ž—†‡•ƒ›
–ƒ‰‹„Ž‡ ‘˜ƒ„Ž‡ ‘” ‹‘˜ƒ„Ž‡ ’”‘’‡”–›Ǥ Š‡ –‡” ƒ••‡– ™‘—Ž†ǡ Š‘™‡˜‡”ǡ ‹…Ž—†‡ ƒŽŽ ‹–ƒ‰‹„Ž‡ ”‹‰Š–• ƒ†ǡ
…‘•‡“—‡–Ž›ǡ‹–‡”‡•–•ǡ†‹˜‹†‡†•ǡ’ƒ–‡–•ƒ†…‘’›”‹‰Š–•ǡ”‘›ƒŽ–‹‡•ǡ”‡–•‡–…Ǥ™‹ŽŽ„‡ƒ…‘‡ˆ”‘ƒ••‡–•Ǥ

(c) Capital Asset:

Ȉ ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰–‘ƒƒ••‡••‡‡ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–•‹–—ƒ–‡†‹†‹ƒ™‘—Ž†„‡ †‡‡‡†
–‘ ƒ……”—‡ ‘” ƒ”‹•‡ ‹ †‹ƒ ‹””‡•’‡…–‹˜‡ ‘ˆ –Š‡ ˆƒ…– ™Š‡–Š‡” –Š‡ …ƒ’‹–ƒŽ ƒ••‡– ‹ “—‡•–‹‘ ”‡’”‡•‡–•ƒ
‘˜ƒ„Ž‡‘”‹‘˜ƒ„Ž‡’”‘’‡”–›‘”ƒ–ƒ‰‹„Ž‡‘”‹–ƒ‰‹„Ž‡ƒ••‡–Ǥ
Ȉ – ‹• ƒŽ•‘ ‹ƒ–‡”‹ƒŽ ™Š‡–Š‡” –Š‡ …‘•‹†‡”ƒ–‹‘ ˆ‘” –Š‡ –”ƒ•ˆ‡” ‘ˆ –Š‡ …ƒ’‹–ƒŽ ƒ••‡– ‹• ƒ…–—ƒŽŽ› ’ƒ‹† ‘”
’ƒ›ƒ„Ž‡‹†‹ƒ‘”‘—–•‹†‡Ǥ
Ȉ Š‡’Žƒ…‡‘ˆ”‡‰‹•–”ƒ–‹‘‘ˆ–Š‡†‘…—‡–‘ˆ–”ƒ•ˆ‡”‘ˆ’”‘’‡”–›‹•‡“—ƒŽŽ›‹ƒ–‡”‹ƒŽǤ
Ȉ ‘™‡˜‡”ǡ ‹ˆ –Š‡ …ƒ’‹–ƒŽ ƒ••‡–ǡ ’”‹‘” –‘ –Š‡ –”ƒ•ˆ‡”ǡ ‹• •‹–—ƒ–‡† ‘—–•‹†‡ †‹ƒǡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ͻȋͳȌ
™‘—Ž†‘–ƒ’’Ž›–‘†‡‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰‘–Š‡–”ƒ•ˆ‡”ƒ•ƒ……”—‹‰‘”ƒ”‹•‹‰‹†‹ƒˆ‘” ’—”’‘•‡•
‘ˆ‹–•–ƒšƒ–‹‘‹†‹ƒǤ
 60 Lesson 2 Ȉ EP-TL

(d) Income from Salaries:

Ȉ …‘‡™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† ƒŽƒ”‹‡• ‹• †‡‡‡† –‘ ƒ……”—‡ ‘” ƒ”‹•‡ ‹ †‹ƒ ‹ ƒŽŽ …ƒ•‡•
™Š‡‡ƒ”‡†‹†‹ƒǤ ‘”–Š‹•’—”’‘•‡‹…‘‡‹••ƒ‹†–‘„‡‡ƒ”‡†‹†‹ƒ‹ˆ–Š‡•‡”˜‹…‡•ƒ”‡”‡†‡”‡†
‹†‹ƒǤ
Ȉ Š‡ ƒ…–—ƒŽ ’Žƒ…‡ ‘ˆ ƒ……”—ƒŽ ‘ˆ –Š‡ •ƒŽƒ”‹‡•ǡ –Š‡ ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ –Š‡ ‡’Ž‘›‡”ǡ –Š‡ …‹–‹œ‡•Š‹’ ‘”
ƒ–‹‘ƒŽ‹–›‘ˆ–Š‡‡’Ž‘›‡‡ƒ†™Š‡–Š‡”–Š‡‡’Ž‘›‡‡‹•ƒ
‘˜‡”‡–•‡”˜ƒ–‘”ƒ‡’Ž‘›‡‡‘ˆ’”‹˜ƒ–‡
‡–‡”’”‹•‡ƒ”‡‹ƒ–‡”‹ƒŽǤ
Ȉ ‘™‡˜‡”ǡ —†‡” —„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ ‡…–‹‘ ͻǡ ƒ› ’‡•‹‘ ’ƒ›ƒ„Ž‡ ‘—–•‹†‡ †‹ƒ –‘ ƒ ’‡”•‘ ”‡•‹†‹‰
’‡”ƒ‡–Ž›‘—–•‹†‡†‹ƒ•Š‘—Ž†‘–„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒ‹ˆ–Š‡’‡•‹‘‹•’ƒ›ƒ„Ž‡–‘…‹˜‹Ž
•‡”˜ƒ–•ƒ†”‡–‹”‡†Œ—†‰‡•’”‘˜‹†‡†–Š‡›™‡”‡ƒ’’‘‹–‡†„‡ˆ‘”‡–Š‡ͳͷ–Š—‰—•–ǡͳͻͶ͹ƒ†…‘–‹—‡†–‘
•‡”˜‡ƒˆ–‡”–Š‡…‘•–‹–—–‹‘…ƒ‡‹–‘‘’‡”ƒ–‹‘Ǥ
Ȉ ƒ””‹‰–Š‹•‡š…‡’–‹‘ǡ‘Ǧ”‡•‹†‡–•ƒ†‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–•‡–‹–Ž‡†–‘”‡…‡‹˜‡•ƒŽƒ”›‘”’‡•‹‘‡ƒ”‡†
„›–Š‡‹†‹ƒ™‘—Ž†„‡†‡‡‡†–‘”‡…‡‹˜‡‹…‘‡™Š‹…ŠŠƒ•ƒ……”—‡†‹†‹ƒ‡˜‡–Š‘—‰Š–Š‡‹…‘‡ƒ›
„‡ƒ…–—ƒŽŽ›ƒ……”—‹‰ƒ†”‡…‡‹˜‡†‘—–•‹†‡†‹ƒǤ
Ȉ …‘‡ ˆ”‘ •ƒŽƒ”‹‡• ’ƒ›ƒ„Ž‡ „› –Š‡
‘˜‡”‡– –‘ ƒ …‹–‹œ‡ ‘ˆ †‹ƒ ‘—–•‹†‡ †‹ƒ ˆ‘” Š‹• •‡”˜‹…‡•
”‡†‡”‡†‘—–•‹†‡†‹ƒǡ‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒ‡˜‡–Š‘—‰Š–Š‡‹…‘‡‹•ƒ…–—ƒŽŽ›ƒ……”—‹‰
‘—–•‹†‡ †‹ƒ ƒ† ‹• ƒŽ•‘ ”‡…‡‹˜‡† ‘—–•‹†‡ †‹ƒǤ Š—•ǡ —†‡” –Š‹• ’”‘˜‹•‹‘ǡ •ƒŽƒ”› ‹…‘‡ ‘ˆ ƒŽŽ

‘˜‡”‡–•‡”˜ƒ–•ǡ™‘”‹‰‘—–•‹†‡†‹ƒ‹•†‡‡‡†–‘ƒ……”—‡‹†‹ƒǤ–Š‡ƒ„•‡…‡‘ˆ–Š‹•’”‘˜‹•‹‘
–Š‡›™‘—Ž†‘–„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹”‡•’‡…–‘ˆ•—…Š‹…‘‡ƒ•–Š‡›™‘—Ž†ǡƒˆ–‡”•‘‡–‹‡ǡ„‡…‘‡
‘Ǧ”‡•‹†‡–•Ǥ
Ȉ Š‹•’”‘˜‹•‹‘–‘†‡‡‹…‘‡ƒ•ƒ……”—‹‰‹†‹ƒƒ’’Ž‹‡•‘Ž›‹”‡•’‡…–‘ˆ–Š‡‹”‹…‘‡ˆ”‘•ƒŽƒ”›„—–‘–
‹”‡•’‡…–‘ˆ–Š‡ƒŽŽ‘™ƒ…‡•ƒ†’‡”“—‹•‹–‡•–‘™Š‹…Š–Š‡›ƒ”‡‡–‹–Ž‡†–‘™Š‹Ž‡•‡”˜‹‰‹ƒˆ‘”‡‹‰…‘—–”›Ǥ
Ȉ ‡…–‹‘ͳͲȋ͹Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ…‘–ƒ‹•ƒ•’‡…‹ϐ‹…’”‘˜‹•‹‘–‘‡š‡’–
‘˜‡”‡–•‡”˜ƒ–•ˆ”‘
–ƒš‘–Š‡‹”•‡”˜‹…‡•‹ƒˆ‘”‡‹‰…‘—–”›’ƒ”–Ž›–‘‡‡––Š‡Š‹‰Š‡”…‘•–‘ˆŽ‹˜‹‰‹–Šƒ–…‘—–”›Ǥ
Ȉ ƒŽƒ”‹‡•’ƒ‹†„›–Š‡†‹ƒ
‘˜‡”‡–‹ƒˆ‘”‡‹‰…‘—–”›–‘…‹–‹œ‡•‘ˆ–Š‡ˆ‘”‡‹‰…‘—–”›•Š‘—Ž†‘–ǡ
Š‘™‡˜‡”ǡ„‡†‡‡‡†–‘ƒ……”—‡‹†‹ƒ•‹…‡–Š‹•’”‘˜‹•‹‘ƒ’’Ž‹‡•‘Ž›–‘†‹ƒ…‹–‹œ‡•‡’Ž‘›‡†„›–Š‡

‘˜‡”‡–™Š‘ƒ”‡”‡†‡”‹‰•‡”˜‹…‡‘—–•‹†‡†‹ƒǤ

(e) Taxability of Interest:

–‡”‡•–’ƒ›ƒ„Ž‡‹ˆ‘ŽŽ‘™‹‰…ƒ•‡•™‹ŽŽ„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒƒ†™‹ŽŽ „‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ
”‡…‹’‹‡–‹””‡•’‡…–‹˜‡‘ˆŠ‹•”‡•‹†‡–‹ƒŽ•–ƒ–—•ȋ‹Ǥ‡Ǥǡǡ‘”ȌǤ
–‡”‡•–’ƒ›ƒ„Ž‡„›ǣ
ȋ‹Ȍ
‘˜‡”‡–Ǣ‘”
ȋ‹‹Ȍ ‡•‹†‡–‹†‹ƒǡ‡š…‡’–™Š‡”‡‹–‡”‡•–‹•’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ‘‡›•„‘””‘™‡†ƒ†—•‡†ˆ‘”–Š‡’—”’‘•‡
‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘—–•‹†‡†‹ƒ‘”‡ƒ”‹‰ƒ›‹…‘‡ˆ”‘ƒ›•‘—”…‡‘—–•‹†‡ †‹ƒ ȋ‹Ǥ‡Ǥǡ
–‡”‡•–’ƒ›ƒ„Ž‡„›ƒ‡•‹†‡–ˆ‘”Ž‘ƒ—•‡†‹†‹ƒˆ‘”ƒ›’—”’‘•‡ǡ™Š‡–Š‡”ˆ‘”„—•‹‡•• ‘”’”‘ˆ‡••‹‘‘”
‘–Š‡”™‹•‡ȌǢ
ȋ‹‹‹Ȍ ‘Ǧ‡•‹†‡–‹†‹ƒ’”‘˜‹†‡†‹–‡”‡•–‹•’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ‘‡›•„‘””‘™‡†ƒ†—•‡†ˆ‘”ƒ„—•‹‡••
‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘‹†‹ƒȋ‹Ǥ‡Ǥǡ–‡”‡•–’ƒ›ƒ„Ž‡„›ƒ‘Ǧ‡•‹†‡–ˆ‘”Ž‘ƒ—•‡†ˆ‘”‘Ž› „—•‹‡••‘”
’”‘ˆ‡••‹‘‹†‹ƒȌ

(f)Taxability of Royalty:
‘›ƒŽ–›’ƒ›ƒ„Ž‡‹ˆ‘ŽŽ‘™‹‰…ƒ•‡•™‹ŽŽ„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒƒ†™‹ŽŽ„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ
”‡…‹’‹‡–‹””‡•’‡…–‹˜‡‘ˆŠ‹•”‡•‹†‡–‹ƒŽ•–ƒ–—•ȋ‹Ǥ‡Ǥǡǡ‘”ȌǤ
 Lesson 2 Ȉ Basic Concept of Income Tax 61

‘›ƒŽ–›’ƒ›ƒ„Ž‡„›ǣ
ȋ‹Ȍ
‘˜‡”‡–Ǣ‘”
ȋ‹‹Ȍ ‡•‹†‡– ‹ †‹ƒ ‡š…‡’– ™Š‡”‡ ‹– ‹• ’ƒ›ƒ„Ž‡ ‹ ”‡•’‡…– ‘ˆ ƒ› ”‹‰Š–Ȁ‹ˆ‘”ƒ–‹‘Ȁ’”‘’‡”–› —•‡† ˆ‘” –Š‡
’—”’‘•‡‘ˆƒ„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘‘—–•‹†‡†‹ƒ‘”‡ƒ”‹‰ƒ›‹…‘‡ˆ”‘ƒ›•‘—”…‡‘—–•‹†‡
†‹ƒ ȋ‹Ǥ‡Ǥǡ ‘›ƒŽ–› ’ƒ›ƒ„Ž‡ „› ƒ ‡•‹†‡– ˆ‘” ”‹‰Š–Ȁ‹ˆ‘”ƒ–‹‘Ȁ’”‘’‡”–› —•‡† ˆ‘” ƒ› ’—”’‘•‡ ‹ †‹ƒ
™Š‡–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘‘”ˆ‘”‡ƒ”‹‰‘–Š‡”‹…‘‡•ȌǢ
ȋ‹‹‹Ȍ ‘Ǧ‡•‹†‡–‹†‹ƒ’”‘˜‹†‡†”‘›ƒŽ–›‹•’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆƒ›”‹‰Š–Ȁ‹ˆ‘”ƒ–‹‘Ȁ’”‘’‡”–›—•‡†ˆ‘”
–Š‡’—”’‘•‡‘ˆ–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘‹†‹ƒ‘”‡ƒ”‹‰ƒ›‹…‘‡ˆ”‘ƒ›•‘—”…‡‹†‹ƒ
ȋ‹Ǥ‡Ǥǡ ‘›ƒŽ–› ’ƒ›ƒ„Ž‡ „› ƒ ‘Ǧ‡•‹†‡– ˆ‘” ”‹‰Š–Ȁ‹ˆ‘”ƒ–‹‘Ȁ’”‘’‡”–› —•‡† ˆ‘” ƒ› ’—”’‘•‡ ‹ †‹ƒ
™Š‡–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘‘”ˆ‘”‡ƒ”‹‰‘–Š‡”‹…‘‡•ȌǤ

(g) Taxability of Fees for Technical Services:

‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›ƒ„Ž‡‹ˆ‘ŽŽ‘™‹‰…ƒ•‡•™‹ŽŽ„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒƒ†™‹ŽŽ„‡–ƒšƒ„Ž‡
‹–Š‡Šƒ†•‘ˆ”‡…‹’‹‡–‹””‡•’‡…–‹˜‡‘ˆŠ‹•”‡•‹†‡–‹ƒŽ•–ƒ–—•ȋ‹Ǥ‡Ǥǡǡ‘”ȌǤ
‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›ƒ„Ž‡„›ǣ
ȋ‹Ȍ
‘˜‡”‡–Ǣ‘”
ȋ‹‹Ȍ ‡•‹†‡–‹†‹ƒ‡š…‡’–™Š‡”‡•‡”˜‹…‡•ƒ”‡—–‹Ž‹œ‡†ˆ‘”–Š‡’—”’‘•‡‘ˆƒ„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘
‘—–•‹†‡†‹ƒ‘”‡ƒ”‹‰ƒ›‹…‘‡ˆ”‘ƒ›•‘—”…‡‘—–•‹†‡†‹ƒȋ‹Ǥ‡Ǥǡ ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›ƒ„Ž‡„›
ƒ‡•‹†‡–ˆ‘”•‡”˜‹…‡•—–‹Ž‹•‡†ˆ‘”ƒ›’—”’‘•‡‹†‹ƒ™Š‡–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘‘”ˆ‘”‡ƒ”‹‰‘–Š‡”
‹…‘‡•ȌǢ
ȋ‹‹‹Ȍ  ‘Ǧ‡•‹†‡– ‹ †‹ƒ ’”‘˜‹†‡† ˆ‡‡ ‹• ’ƒ›ƒ„Ž‡ ‹ ”‡•’‡…– ‘ˆ •‡”˜‹…‡• ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ƒ „—•‹‡•• ‘”
’”‘ˆ‡••‹‘…ƒ””‹‡†‘‹†‹ƒ‘”‡ƒ”‹‰ƒ›‹…‘‡ˆ”‘ƒ›•‘—”…‡‹†‹ƒȋ‹Ǥ‡Ǥǡ ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•
’ƒ›ƒ„Ž‡„›ƒ‡•‹†‡–ˆ‘”•‡”˜‹…‡•—–‹Ž‹•‡†ˆ‘”ƒ›’—”’‘•‡‹†‹ƒ™Š‡–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘‘”ˆ‘”
‡ƒ”‹‰‘–Š‡”‹…‘‡•ȌǢ

(h) Taxability of Dividend:

Ȉ ‹˜‹†‡†’ƒ‹†„›ƒ›†‹ƒ…‘’ƒ›‘—–•‹†‡†‹ƒ‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒƒ†–Š‡‹…‘‡‹•
…‘•‡“—‡–Ž›…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš‹””‡•’‡…–‹˜‡‘ˆ–Š‡ˆƒ…–™Š‡–Š‡”–Š‡†‹˜‹†‡†‹•‹–‡”‹†‹˜‹†‡†‘”ƒ
ϐ‹ƒŽ†‹˜‹†‡†ƒ†™Š‡–Š‡”‹–‹•ƒƒ…–—ƒŽ†‹˜‹†‡†‘”ƒ‘–‹‘ƒŽ†‹˜‹†‡†Ǥ
Ȉ Š‡ ’Žƒ…‡ ‘ˆ †‡…Žƒ”ƒ–‹‘ ‘ˆ –Š‡ †‹˜‹†‡† ‹• ‹ƒ–‡”‹ƒŽ ƒ† –Š‡ †ƒ–‡ ‘ˆ ’ƒ›‡– ‹• ‡“—ƒŽŽ› ‹ƒ–‡”‹ƒŽ ˆ‘”
†‡‡‹‰–Š‡‹…‘‡–‘ƒ……”—‡‹†‹ƒǤ
Ȉ ‘”ƒŽŽ›ǡ†‹˜‹†‡†‹…‘‡ƒ”‹•‡•ƒ––Š‡’Žƒ…‡™Š‡”‡–Š‡•‘—”…‡‘ˆ‹…‘‡‹••‹–—ƒ–‡†ǡ‹Ǥ‡Ǥǡ™Š‡”‡–Š‡•Šƒ”‡•
›‹‡Ž†‹‰ –Š‡ ‹…‘‡ ƒ”‡ ‡’–Ǥ Šƒ”‡• ƒ”‡ •ƒ‹† –‘ „‡ •‹–—ƒ–‡† ƒ– –Š‡ ’Žƒ…‡ ™Š‡”‡ –Š‡ •Šƒ”‡ ”‡‰‹•–‡” ‘ˆ –Š‡
…‘’ƒ› ‹• ‡’–Ǥ Š‹Ž‡ –Š‡ •Šƒ”‡ ”‡‰‹•–‡” ‘ˆ ƒ …‘’ƒ› •Š‘—Ž† ‘”†‹ƒ”‹Ž› „‡ ‡’– ƒ– –Š‡ ’Žƒ…‡ ™Š‡”‡ ‹–•
”‡‰‹•–‡”‡†‘ˆϐ‹…‡‹•Ž‘…ƒ–‡†ǡ‡˜‡‹ˆ–Š‡•Šƒ”‡”‡‰‹•–‡”‹•‡’–‘—–•‹†‡†‹ƒƒ†–Š‡†‹˜‹†‡†•ƒ”‡†‡…Žƒ”‡†
‘—–•‹†‡ †‹ƒǡ –Š‡ †‹˜‹†‡† ™‘—Ž† •–‹ŽŽ „‡ †‡‡‡† –‘ ƒ……”—‡ ‹ †‹ƒ „‡…ƒ—•‡ –Š‡ …‘’ƒ› ‹• ƒ †‹ƒ
…‘’ƒ›Ǥ
Ȉ ‹˜‹†‡†•†‡…Žƒ”‡†„›ˆ‘”‡‹‰…‘’ƒ‹‡•‘—–•‹†‡†‹ƒ™‘—Ž†‘–ǡŠ‘™‡˜‡”ǡ„‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹
†‹ƒ‡˜‡‹…ƒ•‡•™Š‡”‡–Š‡ˆ‘”‡‹‰…‘’ƒ›‹•”‡•‹†‡–‹†‹ƒ„‡…ƒ—•‡‘ˆ–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ
‹–•ƒˆˆƒ‹”•„‡‹‰•‹–—ƒ–‡†™Š‘ŽŽ›‹†‹ƒǤ

‘”†‡”–‘†‡‡–Š‡†‹˜‹†‡†‹…‘‡ƒ•ƒ”‹•‹‰‹†‹ƒǡ–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”ƒ•ƒŽ•‘–Š‡•–ƒ–—•
‘ˆ–Š‡ƒ••‡••‡‡ǡ™Š‡–Š‡”Š‡‹•ƒ‹†‹˜‹†—ƒŽǡ…‘’ƒ›‘”Ž‘…ƒŽƒ—–Š‘”‹–›ǡƒ”‡‹””‡Ž‡˜ƒ–Ǥ
 62 Lesson 2 Ȉ EP-TL

TAX INCIDENCE ǧǧ RESIDENTIAL STATUS

ƒš‹…‹†‡…‡‹•vis-a-vis ”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒŽŽƒ••‡••‡•ƒ•‹†‹…ƒ–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡Ǥ

Where tax incidence arises in case of Resident or Resident but Non- Resident
Resident & not Ordinarily
Ordinarily Resident
Resident
…‘‡ ”‡…‡‹˜‡† ‹ †‹ƒ ȋŠ‡–Š‡” ƒ……”—‡† ‹ ‘” ‘—–•‹†‡   
†‹ƒȌ
…‘‡†‡‡‡†–‘„‡”‡…‡‹˜‡†‹†‹ƒȋŠ‡–Š‡” ƒ……”—‡†   
‹‘”‘—–•‹†‡†‹ƒȌ
…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰‹†‹ƒȋŠ‡–Š‡””‡…‡‹˜‡†‹†‹ƒ   
‘”‘—–•‹†‡†‹ƒȌ
…‘‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒȋŠ‡–Š‡””‡…‡‹˜‡†   
‹†‹ƒ‘”‘—–•‹†‡†‹ƒȌ
…‘‡ ”‡…‡‹˜‡† ƒ† ƒ……”—‡† ‘—–•‹†‡ †‹ƒ ˆ”‘ ƒ„—•‹‡••   
…‘–”‘ŽŽ‡†‘”ƒ’”‘ˆ‡••‹‘•‡–—’‹†‹ƒ
…‘‡ ”‡…‡‹˜‡† ƒ† ƒ……”—‡† ‘—–•‹†‡ †‹ƒ ˆ”‘ ƒ „—•‹‡••   
…‘–”‘ŽŽ‡†ˆ”‘‘—–•‹†‡†‹ƒ‘”ƒ’”‘ˆ‡••‹‘•‡–—’‘—–•‹†‡†‹ƒ
…‘‡‡ƒ”‡†ƒ†”‡…‡‹˜‡†‘—–•‹†‡†‹ƒ„—–Žƒ–‡”‘”‡‹––‡†–‘   
†‹ƒȋ™Š‡–Š‡”–ƒš‹…‹†‡…‡ƒ”‹•‡•ƒ––Š‡ –‹‡‘ˆ”‡‹––ƒ…‡ǫȌ
ƒ•– —–ƒš‡† ’”‘ϐ‹–• ȋ‘– –ƒšƒ„Ž‡ ƒ• ”‡Žƒ–‡• –‘ ’ƒ•–›‡ƒ”•Ȍ   
‰”‹…—Ž–—”ƒŽ …‘‡ ‹ †‹ƒ ȏš‡’– —†‡” ‡…–‹‘ ͳͲȋͳȌȐ   
‘‰ –‡” …ƒ’‹–ƒŽ ‰ƒ‹ ȏ‘  ’ƒ‹† •Šƒ”‡• ‘” ‘ •Šƒ”‡•
•‘Ž† –Š”‘—‰Š •–‘… ‡š…Šƒ‰‡Ȑ š‡’– —Ȁ• ͳͲȋ͵ͺȌ ƒ”‹•‹‰   
„‡ˆ‘”‡ͳ•–’”‹ŽǡʹͲͳͺ

‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹—Ȁ•ͳͲȋ͵ͺȌ‘‘”ƒˆ–‡”ͳ•–’”‹Žǡ ʹͲͳͺ   

‹˜‹†‡†ˆ”‘ƒ‘‡•–‹…‘’ƒ›ȏš‡’–—Ȁ• ͳͲȋ͵ͶȌȐ ‘”

…‘‡ ˆ”‘ —–—ƒŽ ˆ—†• •’‡…‹ϐ‹‡† —Ȁ•ͳͲȋʹ͵Ȍ ȏš‡’–   
—Ȁ• ͳͲȋ͵ͷȌȐ ƒ”‹•‹‰ „‡ˆ‘”‡ ͳ•–’”‹Žǡ ʹͲʹͲ
 ‹˜‹†‡† ˆ”‘ ƒ ‘‡•–‹… ‘’ƒ› ‘”  …‘‡    ˆ”‘
—–—ƒŽ ˆ—†• •’‡…‹ϐ‹‡† —Ȁ• ͳͲȋʹ͵Ȍ ƒ”‹•‹‰ ‘‘”ƒˆ–‡”ͳ•–   
’”‹ŽǡʹͲʹͲȏƒšƒ„Ž‡‡†‡–˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲȐ

‹ˆ–•ˆ”‘”‡Žƒ–‹˜‡•‘”‘ƒ””‹ƒ‰‡‘”—†‡”™‹ŽŽ‡–…Ǥȋ‘” ‰‹ˆ–•
ˆ”‘‘–Š‡”•—’–‘•ǤͷͲǡͲͲͲ‹ƒ›‡ƒ”Ȍ   

Š‡ƒ„‘˜‡–ƒ„Ž‡†‡’‹…–•–Šƒ––Š‡ϐ‹”•–ˆ‘—”‹…‘‡•ƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹†‹ƒ‹”‡•’‡…–‘ˆƒŽŽƒ••‡••‡•ǡ‹””‡•’‡…–‹˜‡
‘ˆ–Š‡‹””‡•‹†‡–‹ƒŽ•–ƒ–—•Ǥ–Š‡…ƒ•‡‘ˆƒ”‡•‹†‡–‘””‡•‹†‡–ƒ†‘”†‹ƒ”‹Ž›”‡•‹†‡–ƒ••‡••‡‡ǡ–ƒš‹…‹†‡…‡‹•–Š‡
Š‹‰Š‡•–ƒ•‹…‘‡ƒ……”—‹‰‹ƒ›’ƒ”–‘ˆ–Š‡™‘”Ž†ƒ––”ƒ…–•–ƒš‹…‹†‡…‡‹†‹ƒǤŠ‡–ƒš‹…‹†‡…‡ǡ‘–Š‡‘–Š‡”
Šƒ†ǡ ‹• –Š‡ Ž‘™‡•– ‹ –Š‡ …ƒ•‡ ‘ˆ ‘Ǧ”‡•‹†‡– ƒ• ‘Ž› •—…Š ‹…‘‡ ƒ• ƒ……”—‡† ‘” ‹• ”‡…‡‹˜‡† ‘” †‡‡‡† –‘ „‡
”‡…‡‹˜‡†‹†‹ƒ‹•Ž‹ƒ„Ž‡–‘–ƒšǤ
”‡•’‡…–‘ˆ‹…‘‡•™Š‹…Šƒ”‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǡ‹–‹•‹ƒ–‡”‹ƒŽƒ•–‘™Š‘–Š‡ƒ••‡••‡‡‹•‘”™Šƒ–
‹•–Š‡ƒ–—”‡‘”•–ƒ–—•‘ˆ–Š‡ƒ••‡••‡ǯ•’‘•‹–‹‘‹†‹ƒǤ‹…‡‹…‘‡™Š‹…Š‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒ‹•
–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆƒŽŽƒ••‡••‡•”‡‰ƒ”†Ž‡••‘ˆ–Š‡‹””‡•‹†‡–‹ƒŽ•–ƒ–—•ǡƒ–‹‘ƒŽ‹–›ǡ…‹–‹œ‡•Š‹’ǡ’Žƒ…‡‘ˆ„‹”–Šǡ–Š‡
†‘‹…‹Ž‡‘”„—•‹‡••Ǥ‘™‡˜‡”ǡ–Š‡ƒ„‘˜‡–ƒ„Ž‡Šƒ•ƒƒŒ‘””‘Ž‡‹†‡–‡”‹‹‰–Š‡–ƒš‹…‹†‡…‡‹…ƒ•‡‘ˆ‘
”‡•‹†‡–•ƒ†ƒŽ•‘‹…ƒ•‡•™Š‡”‡–Š‡‹…‘‡‹•ƒ…–—ƒŽŽ›ƒ……”—‹‰‘”ƒ”‹•‹‰‘—–•‹†‡†‹ƒǤ
Lesson 2 Ȉ Basic Concept of Income Tax 63

Illustration 11:
”Ǥ‡ƒ”•–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‡†‡†͵ͳ•–ƒ”…ŠǡʹͲʹʹǤ‡–‡”‹‡–Š‡‹…‘‡Ž‹ƒ„Ž‡
–‘–ƒšˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵‹ˆ”Ǥ‹•ȋƒȌ”‡•‹†‡–ƒ†‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒǡȋ„Ȍ”‡•‹†‡–ƒ†
‘– ‘”†‹ƒ”‹Ž› ”‡•‹†‡– ‹ †‹ƒǡ ƒ† ȋ…Ȍ ‘Ǧ”‡•‹†‡– ‹ †‹ƒ †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‡†‡† ͵ͳ•–ƒ”…Šǡ
ʹͲʹʹǤ
Ȉ ”‘ϐ‹–•‘•ƒŽ‡‘ˆƒ„—‹Ž†‹‰‹†‹ƒ„—–”‡…‡‹˜‡†‹‘ŽŽƒ†Ȃ•ǤʹͲǡͲͲͲ
Ȉ ‡•‹‘ˆ”‘ˆ‘”‡”‡’Ž‘›‡”‹†‹ƒ”‡…‡‹˜‡†‹‘ŽŽƒ†Ȃ•ǤͳͶǡͲͲͲ
Ȉ –‡”‡•–‘ǤǤ‡˜‡Ž‘’‡–‘†•ȋͳȀͶ„‡‹‰”‡…‡‹˜‡†‹†‹ƒȌȂ•ǤʹͲǡͲͲͲ
Ȉ …‘‡ˆ”‘’”‘’‡”–›‹—•–”ƒŽ‹ƒƒ†”‡…‡‹˜‡†‹ǤǤǤȂ•ǤͳͷǡͲͲͲ
Ȉ …‘‡ ‡ƒ”‡† ˆ”‘ ƒ „—•‹‡•• ‹„›••‹‹ƒ ™Š‹…Š ‹• …‘–”‘ŽŽ‡† ˆ”‘ ƒ„‹ƒ ȋ•Ǥ ͵ͲǡͲͲͲ ”‡…‡‹˜‡† ‹
†‹ƒȌȂ•Ǥ͹ͲǡͲͲͲ
Ȉ ‹˜‹†‡†‘•Šƒ”‡•‘ˆƒ†‹ƒ…‘’ƒ›„—–”‡…‡‹˜‡†‹‘ŽŽƒ†Ȃ•ǤͳͲǡͲͲͲ
Ȉ ”‘ϐ‹–•‘––ƒš‡†’”‡˜‹‘—•Ž›„”‘—‰Š–‹–‘†‹ƒȂ•ǤͶͲǡͲͲͲ
Ȉ ”‘ϐ‹–•ˆ”‘ƒ„—•‹‡••‹ƒ‰’—”™Š‹…Š‹•…‘–”‘ŽŽ‡†ˆ”‘‘ŽŽƒ†Ȃ•Ǥʹ͹ǡͲͲͲ

Solution ǣ‘’—–ƒ–‹‘‘ˆ‹…‘‡Ž‹ƒ„Ž‡–‘–ƒšǣ

Resident & Resident but not

Non-Resident
Particular Ordinarily Ordinarily Resident
(Rs.)
Resident (Rs.) (Rs.)

”‘ϐ‹–• ‘ •ƒŽ‡ ‘ˆ ƒ „—‹Ž†‹‰ ‹ †‹ƒ „—– ʹͲǡͲͲͲ ʹͲǡͲͲͲ ʹͲǡͲͲͲ
”‡…‡‹˜‡†‹‘ŽŽƒ†ȋƒ……”—‡†‹†‹ƒ”‡…‡‹˜‡†
‘—–•‹†‡†‹ƒȌ
‡•‹‘ ˆ”‘ ˆ‘”‡” ‡’Ž‘›‡” ‹ †‹ƒ ͳͶǡͲͲͲ ͳͶǡͲͲͲ ͳͶǡͲͲͲ
”‡…‡‹˜‡†‹‘ŽŽƒ†ȋƒ……”—‡†‹†‹ƒǡ”‡…‡‹˜‡†
‘—–‘ˆ†‹ƒȌ
–‡”‡•– ‘ ǤǤ ‡˜‡Ž‘’‡– ‘†• ȋ……”—‡† ͷǡͲͲͲ ͷǡͲͲͲ ͷǡͲͲͲ
‘—–‘ˆ†‹ƒǡͳȀͶ–Š”‡…‡‹˜‡†‹†‹ƒȌ
–‡”‡•– ‘ ǤǤ ‡˜‡Ž‘’‡– ‘†• ȋ……”—‡† ͳͷǡͲͲͲ ‹Ž ‹Ž
‘—–‘ˆ†‹ƒǡ͵ȀͶ–Š”‡…‡‹˜‡†‘—–‘ˆ†‹ƒȌ

…‘‡ˆ”‘’”‘’‡”–›‹—•–”ƒŽ‹ƒƒ†”‡…‡‹˜‡† ͳͷǡͲͲͲ ‹Ž ‹Ž

‹ǤǤǤȋ……”—‡†ƒ†”‡…‡‹˜‡†‘—–‘ˆ†‹ƒȌ

…‘‡ ‡ƒ”‡† ˆ”‘ ƒ „—•‹‡•• ‹ „›••‹‹ƒ ͹ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ

™Š‹…Š ‹• …‘–”‘ŽŽ‡† ˆ”‘ ƒ„‹ƒ ȋ—•‹‡••
…‘–”‘ŽŽ‡†‘—–•‹†‡†‹ƒȌ
‹˜‹†‡† ‘ •Šƒ”‡• ‘ˆ ƒ †‹ƒ …‘’ƒ› „—– ͳͲǡͲͲͲ ͳͲǡͲͲͲ ͳͲǡͲͲͲ
”‡…‡‹˜‡†‹‘ŽŽƒ†ȋ……”—‡†‹†‹ƒȌ

”‘ϐ‹–•‘––ƒš‡†’”‡˜‹‘—•Ž›„”‘—‰Š–‹–‘†‹ƒ ‹Ž ‹Ž ‹Ž

ȋ‘–ƒ‹…‘‡•‘‘––ƒšƒ„Ž‡Ȍ

”‘ϐ‹–• ˆ”‘ ƒ „—•‹‡•• ‹ ƒ‰’—” ™Š‹…Š ‹• ʹ͹ǡͲͲͲ ʹ͹ǡͲͲͲ ʹ͹ǡͲͲͲ
…‘–”‘ŽŽ‡†ˆ”‘‘ŽŽƒ†ȋ……”—‡†‹†‹ƒȌ
Total 1,76,000 1,06,000 1,06,000
64 Lesson 2 Ȉ EP-TL

Illustration 12 ǣ
Šƒ†–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‡†‡†͵ͳ•–ƒ”…ŠǡʹͲʹʹǣ
Ȉ ƒŽƒ”›‡…‡‹˜‡†‹†‹ƒˆ‘”–Š”‡‡‘–Š•Ǧ•ǤͻǡͲͲͲ
Ȉ …‘‡ˆ”‘Š‘—•‡’”‘’‡”–›‹†‹ƒǦ•Ǥͳ͵ǡͶ͹Ͳ
Ȉ –‡”‡•–‘ƒ˜‹‰ƒ‡’‘•‹–‹–ƒ–‡ƒ‘ˆ†‹ƒǦ•ǤͳǡͲͲͲ
Ȉ ‘—–„”‘—‰Š–‹–‘†‹ƒ‘—–‘ˆ–Š‡’ƒ•–—–ƒš‡†’”‘ϐ‹–•‡ƒ”‡†‹
‡”ƒ›Ǧ•ǤʹͲǡͲͲͲ
Ȉ …‘‡ˆ”‘ƒ‰”‹…—Ž–—”‡‹†‘‡•‹ƒ„‡‹‰‹˜‡•–‡†–Š‡”‡Ǧ•Ǥͳʹǡ͵ͷͲ
Ȉ …‘‡ˆ”‘„—•‹‡••‹ƒ‰Žƒ†‡•Šǡ„‡‹‰…‘–”‘ŽŽ‡†ˆ”‘†‹ƒǦ•ǤͳͲǡͳͷͲ
Ȉ ‹˜‹†‡†•”‡…‡‹˜‡†‹‡Ž‰‹—ˆ”‘ ”‡…Š…‘’ƒ‹‡•ǡ‘—–‘ˆ™Š‹…Š•ǤʹǡͷͲͲ™‡”‡”‡‹––‡†–‘†‹ƒǦ•Ǥ
ʹ͵ǡͲͲͲ

‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡Š‹•–‘–ƒŽ‹…‘‡ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵‹ˆŠ‡‹•ǣȋ‹Ȍƒ”‡•‹†‡–Ǣȋ‹‹Ȍƒ‘–
‘”†‹ƒ”‹Ž›”‡•‹†‡–ǡƒ†ȋ‹‹‹Ȍƒ‘Ǧ”‡•‹†‡–Ǥ
Solution ǣ
‘’—–ƒ–‹‘‘ˆ–‘–ƒŽ‹…‘‡‘ˆ‹•‰‹˜‡„‡Ž‘™ǣ

Resident & Resident but

Non-Resident
Particular Ordinarily not Ordinarily
(Rs.)
Resident (Rs.) Resident (Rs.)

ƒŽƒ”› ‡…‡‹˜‡† ‹ †‹ƒ ˆ‘” –Š”‡‡ ‘–Š• ȋ†‹ƒ

”‡…‡‹˜‡†‹†‹ƒȌ ͻǡͲͲͲ ͻǡͲͲͲ ͻǡͲͲͲ

…‘‡ ˆ”‘ Š‘—•‡ ’”‘’‡”–› ‹ †‹ƒ ȋ…‘‡

ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒȌ ͳ͵ǡͶ͹Ͳ ͳ͵ǡͶ͹Ͳ ͳ͵ǡͶ͹Ͳ

–‡”‡•– ‘ ƒ˜‹‰ ƒ ‡’‘•‹– ‹ –ƒ–‡ ƒ ‘ˆ

†‹ƒȋ…‘‡ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒȌ ͳǡͲͲͲ ͳǡͲͲͲ ͳǡͲͲͲ

‘—–„”‘—‰Š–‹–‘†‹ƒ‘—–‘ˆ–Š‡’ƒ•–—–ƒš‡†
’”‘ϐ‹–• ‡ƒ”‡† ‹
‡”ƒ› ȋ ‘– ƒ ‹…‘‡ǡ Š‡…‡ ‹Ž ‹Ž ‹Ž
‘––ƒšƒ„Ž‡Ȍ
…‘‡ˆ”‘ƒ‰”‹…—Ž–—”‡‹†‘‡•‹ƒ„‡‹‰‹˜‡•–‡†
–Š‡”‡ȋ…‘‡ƒ……”—‡‘”ƒ”‹•‡‘—–•‹†‡†‹ƒȌ ͳʹǡ͵ͷͲ ‹Ž ‹Ž

…‘‡ ˆ”‘ „—•‹‡•• ‹ ƒ‰Žƒ†‡•Šǡ „‡‹‰

…‘–”‘ŽŽ‡†ˆ”‘†‹ƒȋ‹–‹••—’’‘•‡†–Šƒ––Š‡‘‡›
‹• ‘– ”‡…‡‹˜‡† ‹ †‹ƒȌ ȋ…‘‡ ƒ……”—‡† ‘—–•‹†‡ ͳͲǡͳͷͲ ͳͲǡͳͷͲ ‹Ž
†‹ƒˆ”‘ƒ„—•‹‡••…‘–”‘ŽŽ‡†ˆ”‘†‹ƒȌ

‹˜‹†‡†• ”‡…‡‹˜‡† ‹ ‡Ž‰‹— ˆ”‘ ”‡…Š

…‘’ƒ‹‡•ȋ…‘‡ƒ……”—‡‘—–•‹†‡†‹ƒǤ‡‹––ƒ…‡ ʹ͵ǡͲͲͲ ‹Ž ‹Ž
–‘†‹ƒ‹•‹””‡Ž‡˜ƒ–Ȍ

Total 68,970 33,620 23,470

Lesson 2 Ȉ Basic Concept of Income Tax 65

Illustration 13 ǣ
”Ǥ‡ƒ”•–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‡†‡†‘͵ͳ•–ƒ”…ŠǡʹͲʹʹǤ‡–‡”‹‡–Š‡‹…‘‡
Ž‹ƒ„Ž‡–‘–ƒšˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵‹ˆ”Ǥ‹•ȋƒȌ”‡•‹†‡–ƒ†‘”†‹ƒ”›”‡•‹†‡–ȋ„Ȍ”‡•‹†‡–ƒ†‘–
‘”†‹ƒ”›”‡•‹†‡–ǡƒ†ȋ…Ȍ‘Ǧ”‡•‹†‡–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‡†‡†‘͵ͳ•–ƒ”…ŠǡʹͲʹʹǤ
ȋ‹Ȍ ‘‘”ƒ”‹—”‡…‡‹˜‡†ˆ”‘
‘˜‡”‡–‘ˆ†‹ƒȋ”ƒ˜‡ŽŽ‹‰ƒ†‘–Š‡”‹…‹†‡–ƒŽ‡š’‡•‡•‘ˆ•Ǥ͹ǡͲͲͲ
™‡”‡‹…—””‡†‹–Š‹•…‘‡…–‹‘ȌǦ•ǤʹͲǡͲͲͲ
ȋ‹‹Ȍ ”‘ϐ‹–•‡ƒ”‡†ˆ”‘ƒ„—•‹‡••‹ƒ‹Žƒ†—…‘–”‘ŽŽ‡†ˆ”‘ƒ‹•–ƒǦ•ǤͷͲǡͲͲͲ
ȋ‹‹‹Ȍ ”‘ϐ‹–•‡ƒ”‡†ˆ”‘ƒ„—•‹‡••‹ǤǤ…‘–”‘ŽŽ‡†ˆ”‘‡ŽŠ‹Ǧ•Ǥ͵ͲǡͲͲͲ
ȋ‹˜Ȍ ”‘ϐ‹–•‡ƒ”‡†ˆ”‘ƒ„—•‹‡••‹ǤǤǤ…‘–”‘ŽŽ‡†ˆ”‘ƒ‹•–ƒƒ†ƒ‘—–†‡’‘•‹–‡†‹ƒ„ƒ–Š‡”‡Ǧ
•ǤͶͲǡͲͲͲ
ȋ˜Ȍ …‘‡ˆ”‘ƒŠ‘—•‡’”‘’‡”–›‹ ”ƒ…‡ǡ”‡…‡‹˜‡†‹†‹ƒǦ•ǤͳͲǡͲͲͲ
ȋ˜‹Ȍ ƒ•–—–ƒš‡†ˆ‘”‡‹‰‹…‘‡„”‘—‰Š–‹–‘†‹ƒ†—”‹‰–Š‡›‡ƒ”Ǧ•ǤʹͷǡͲͲͲ
ȋ˜‹‹Ȍ ‹˜‹†‡†•ˆ”‘ƒ
‡”ƒ…‘’ƒ›…”‡†‹–‡†–‘Š‹•ƒ……‘—–‹ƒ‹•–ƒǦ•Ǥ͵ͷǡͲͲͲ
ȋ˜‹‹‹Ȍ ‹˜‹†‡†•†‡…Žƒ”‡†„—–‘–”‡…‡‹˜‡†ˆ”‘ƒ†‹ƒ…‘’ƒ›Ǧ•ǤʹͲǡͲͲͲ
ȋ‹šȌ ‰”‹…—Ž–—”ƒŽ‹…‘‡ˆ”‘—”ƒ‘–”‡‹––‡†–‘†‹ƒǦ•ǤͶͲǡͲͲͲ
ȋšȌ ‡•‹‘ˆ‘”•‡”˜‹…‡•”‡†‡”‡†‹†‹ƒǡ„—–”‡…‡‹˜‡†‹ƒ‹•–ƒǦ•Ǥ͵ͲǡͲͲͲ
Solution:
‘’—–ƒ–‹‘‘ˆ…‘‡Ž‹ƒ„Ž‡–‘–ƒš‘ˆ”Ǥ‹•‰‹˜‡„‡Ž‘™ǣ

Resident & Resident but not Non-Resident

Particular Ordinarily Ordinarily (Rs.)
Resident (Rs.) Resident (Rs.)
‘‘”ƒ”‹—”‡…‡‹˜‡†ˆ”‘
‘˜–Ǥ‘ˆ†‹ƒ ʹͲǡͲͲͲ ʹͲǡͲͲͲ ʹͲǡͲͲͲ
”‘ϐ‹–• ‡ƒ”‡† ˆ”‘ ƒ „—•‹‡•• ‹ ƒ‹Žƒ†—
…‘–”‘ŽŽ‡†ˆ”‘ƒ‹•–ƒȋ…‘‡ƒ……”—‡‘”ƒ”‹•‡ ͷͲǡͲͲͲ ͷͲǡͲͲͲ ͷͲǡͲͲͲ
‹†‹ƒȌ
”‘ϐ‹ ‡ƒ”‡† ˆ”‘ ƒ „—•‹‡•• ‹ ǤǤ …‘–”‘ŽŽ‡†
ˆ”‘ ‡ŽŠ‹ ȋ…‘‡ ƒ……”—‡ ‘” ƒ”‹•‡ ‘—–•‹†‡ †‹ƒ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ Ǧ
ˆ”‘ƒ„—•‹‡••…‘–”‘ŽŽ‡†ˆ”‘†‹ƒȌ
”‘ϐ‹–•‡ƒ”‡†ˆ”‘ƒ„—•‹‡••‹ …‘–”‘ŽŽ‡†
ˆ”‘ ƒ‹•–ƒ ƒ† ƒ‘—– †‡’‘•‹–‡† ‹ ƒ ƒ ͶͲǡͲͲͲ Ǧ Ǧ
–Š‡”‡ȋ…‘‡ƒ……”—‡‘—–•‹†‡†‹ƒȌ
…‘‡  ˆ”‘  ƒ  Š‘—•‡  ’”‘’‡”–›  ‹  ”ƒ…‡ǡ ͳͲǡͲͲͲ ͳͲǡͲͲͲ ͳͲǡͲͲͲ
”‡…‡‹˜‡†‹†‹ƒȋ…‘‡”‡…‡‹˜‡†‹†‹ƒȌ
ƒ•– —–ƒš‡† ˆ‘”‡‹‰ ‹…‘‡ „”‘—‰Š– ‹–‘ †‹ƒ
†—”‹‰ –Š‡ ›‡ƒ” ȋ‘– –ƒšƒ„Ž‡ ƒ• ’”‘ϐ‹– ‘ˆ ’ƒ•– Ǧ Ǧ Ǧ
›‡ƒ”•ǡƒŽ•‘”‡‹––ƒ…‡‹•‹””‡Ž‡˜ƒ–Ȍ
‹˜‹†‡†• ˆ”‘ ƒ ˆ‘”‡‹‰ …‘’ƒ› …”‡†‹–‡† –‘ ͵ͷǡͲͲͲ Ǧ Ǧ
Š‹•ƒ……‘—–‹ƒ‹•–ƒȋ…‘‡ƒ……”—‡‘—–•‹†‡†‹ƒȌ
‹˜‹†‡†• †‡…Žƒ”‡† „—– ‘– ”‡…‡‹˜‡† ˆ”‘ ƒ Ǧ Ǧ Ǧ
†‹ƒ…‘’ƒ›ȏ—Ȁ•ͳͲȋ͵͵Ȍ‡Œ‘›•‡š‡’–‹‘Ȑ
‰”‹…—Ž–—”ƒŽ‹…‘‡ˆ”‘—”ƒ‘–”‡‹––‡†–‘ ͶͲǡͲͲͲ Ǧ Ǧ
†‹ƒȋ…‘‡ƒ……”—‡‘—–•‹†‡†‹ƒȌ
‡•‹‘ˆ‘”‡”˜‹…‡•”‡†‡”‡†‹†‹ƒǡ„—–”‡…‡‹˜‡†‹ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ
ƒ‹•–ƒȋ…‘‡†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒȌ
Total 2,55,000 1,40,000 1,10,000
 66 Lesson 2 Ȉ EP-TL

‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›‹…Ž—†‡•ˆ‘ŽŽ‘™‹‰•–‡’•ǣ
ͳǤ ‡–‡”‹‡–Š‡…ƒ–‡‰‘”›‘ˆ’‡”•‘
ʹǤ ‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡’‡”•‘ƒ•’‡”•‡…–‹‘͸
͵Ǥ ƒŽ…—Žƒ–‡–Š‡‘–ƒŽ‹…‘‡ƒ•’‡”–Š‡’”‘˜‹•‹‘•
ͶǤ ƒŽ…—Žƒ–‡–Š‡–ƒš‘‹…‘‡Ǥ

COMPUTATION OF TAXABLE INCOME AND TAX LIABILITY OF AN ASSESSEE

…‘‡–ƒš‹•ƒ…Šƒ”‰‡‘–Š‡ƒ••‡••‡‡ǯ•‹…‘‡Ǥ…‘‡ƒšŽƒ™Žƒ›•†‘™–Š‡’”‘˜‹•‹‘•ˆ‘”…‘’—–‹‰–Š‡–ƒšƒ„Ž‡
‹…‘‡‘™Š‹…Š–ƒš‹•–‘„‡…Šƒ”‰‡†Ǥƒšƒ„Ž‡‹…‘‡‘ˆƒƒ••‡••‡‡•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”Ǥ
ͳǤ ‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡’‡”•‘ƒ•’‡”•‡…–‹‘͸‘ˆ–Š‡…–Ǥ
ʹǤ ƒŽ…—Žƒ–‡–Š‡‹…‘‡ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ”‡•’‡…–‹˜‡Š‡ƒ†•‘ˆ‹…‘‡Ǥ‡…–‹‘ͳͶ…Žƒ••‹ϐ‹‡•–Š‡‹…‘‡
—†‡”ϐ‹˜‡Š‡ƒ†•Ǥ
ȋ‹Ȍ …‘‡ˆ”‘•ƒŽƒ”‹‡•
ȋ‹‹Ȍ …‘‡ˆ”‘‘—•‡”‘’‡”–›
ȋ‹‹‹Ȍ ”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘””‘ˆ‡••‹‘
ȋ‹˜Ȍ ƒ’‹–ƒŽ
ƒ‹•
ȋ˜Ȍ …‘‡ˆ”‘‘–Š‡”•‘—”…‡•Ǥ
͵Ǥ ‘•‹†‡”ƒŽŽ–Š‡†‡†—…–‹‘•ƒ†ƒŽŽ‘™ƒ…‡•‰‹˜‡—†‡”–Š‡”‡•’‡…–‹˜‡Š‡ƒ†•„‡ˆ‘”‡ƒ””‹˜‹‰ƒ––Š‡‡– —†‡”
‡ƒ…ŠŠ‡ƒ†Ǥ
ͶǤ š…Ž—†‡–Š‡‹…‘‡‡š‡’–—†‡”•‡…–‹‘ͳͲ‘ˆ–Š‡…–Ǥ
ͷǤ ‰‰”‡‰ƒ–‡‘ˆ‹…‘‡•…‘’—–‡†—†‡”–Š‡ͷŠ‡ƒ†•‘ˆ‹…‘‡ƒˆ–‡”ƒ’’Ž›‹‰…Ž—„„‹‰’”‘˜‹•‹‘•ƒ†ƒ‹‰
ƒ†Œ—•–‡–•‘ˆ•‡–‘ˆˆƒ†…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••‡•‹•‘™ƒ•
”‘••‘–ƒŽ…‘‡Ǥ
͸Ǥ ‡†—…––Š‡”‡ˆ”‘–Š‡†‡†—…–‹‘•ƒ†‹••‹„Ž‡—†‡”‡…–‹‘•ͺͲ–‘ͺͲǤŠ‡„ƒŽƒ…‡‹•…ƒŽŽ‡†‘–ƒŽ‹…‘‡Ǥ
͹Ǥ Š‡–‘–ƒŽ‹…‘‡‹•”‘—†‡†‘ˆˆ–‘–Š‡‡ƒ”‡•–—Ž–‹’Ž‡‘ˆ—’‡‡•–‡Ǥȋ‡…–‹‘ʹͺͺȌ
ͺǤ †† ƒ‰”‹…—Ž–—”‡ ‹…‘‡ ȋ‹ˆ ƒ›Ȍ ‹ –Š‡ –‘–ƒŽ ‹…‘‡ …ƒŽ…—Žƒ–‡† ‹ ȋ͸Ȍ ƒ„‘˜‡Ǥ Š‡ …ƒŽ…—Žƒ–‡ –ƒš ‘ –Š‡
ƒ‰‰”‡‰ƒ–‡ƒ•‹ˆ•—…Šƒ‰‰”‡‰ƒ–‡‹…‘‡‹•–Š‡‘–ƒŽ…‘‡Ǥ
ͻǤ ƒŽ…—Žƒ–‡‹…‘‡–ƒš‘–Š‡‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ•‹…”‡ƒ•‡†„›•ǤʹǡͷͲǡͲͲͲȀ͵ǡͲͲǡͲͲͲȀͷǡͲͲǡͲͲͲƒ•–Š‡…ƒ•‡
ƒ›„‡ǡƒ•‹ˆ•—…Š‹…”‡ƒ•‡†‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡™‡”‡–Š‡–‘–ƒŽ‹…‘‡Ǥ
ͳͲǤ Š‡ ƒ‘—– ‘ˆ ‹…‘‡ –ƒš †‡–‡”‹‡† —†‡” ȋͻȌ ƒ„‘˜‡ ™‹ŽŽ „‡ †‡†—…–‡† ˆ”‘ –Š‡ ƒ‘—– ‘ˆ ‹…‘‡ –ƒš
†‡–‡”‹‡†—†‡”ȋͺȌƒ„‘˜‡Ǥ
ͳͳǤ ƒŽ…—Žƒ–‡‹…‘‡–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•—†‡”‡…–‹‘ͳͳʹǡƒ†‘‘–Š‡”‹…‘‡ƒ–•’‡…‹ϐ‹‡†”ƒ–‡•Ǥ
ͳʹǤ Š‡„ƒŽƒ…‡‘ˆƒ‘—–‘ˆ‹…‘‡–ƒšŽ‡ˆ–ƒ•’‡”ȋͳͲȌƒ„‘˜‡’Ž—•–Š‡ƒ‘—–‘ˆ‹…‘‡–ƒšƒ–ȋͳͳȌƒ„‘˜‡ ™‹ŽŽ„‡
–Š‡‹…‘‡–ƒš‹”‡•’‡…–‘ˆ–Š‡–‘–ƒŽ‹…‘‡Ǥ
ͳ͵Ǥ ‡†—…––Š‡ˆ‘ŽŽ‘™‹‰ˆ”‘–Š‡ƒ‘—–‘ˆ–ƒš…ƒŽ…—Žƒ–‡†—†‡”ȋͳʹȌƒ„‘˜‡Ǥ
Ȉ ‡„ƒ–‡—†‡”•‡…–‹‘ͺ͹ȋ‹ˆƒ’’Ž‹…ƒ„Ž‡ȌǤ
Ȉ ƒš†‡†—…–‡†ƒ†…‘ŽŽ‡…–‡†ƒ–•‘—”…‡Ǥ
Ȉ †˜ƒ…‡–ƒš’ƒ‹†Ǥ
Ȉ ‘—„Ž‡–ƒšƒ–‹‘”‡Ž‹‡ˆȋ‡…–‹‘ͻͲ‘”ͻͳȌǤ
ͳͶǤ Š‡„ƒŽƒ…‡‘ˆƒ‘—–Ž‡ˆ–ƒˆ–‡”†‡†—…–‹‘‘ˆ‹–‡•‰‹˜‡‹ȋͳ͵Ȍƒ„‘˜‡ǡ•ŠƒŽŽ„‡–Š‡‡––ƒš’ƒ›ƒ„Ž‡‘”‡––ƒš
”‡ˆ—†ƒ„Ž‡ˆ‘”–Š‡ƒ••‡••‡‡Ǥ‡––ƒš’ƒ›ƒ„Ž‡Ȁ”‡ˆ—†ƒ„Ž‡•ŠƒŽŽ„‡”‘—†‡†‘ˆˆ–‘–Š‡‡ƒ”‡•–—Ž–‹’Ž‡‘ˆ‡
”—’‡‡•ȋ‡…–‹‘ʹͺͺȌǤ
 Lesson 2 Ȉ Basic Concept of Income Tax 67

ͳͷǤ Ž‘‰™‹–Š–Š‡ƒ‘—–‘ˆ‡––ƒš’ƒ›ƒ„Ž‡ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽŠƒ˜‡–‘’ƒ›’‡ƒŽ–‹‡•‘”ϐ‹‡•ǡ‹ˆƒ›ǡ‹’‘•‡†
‘Š‹—†‡”–Š‡…‘‡Ǧ–ƒš…–Ǥ
‘”…ƒŽ…—Žƒ–‹‘ ‘ˆ‹…‘‡ǡƒ‘—– ”‡…‡‹˜‡†‹•…Žƒ••‹ϐ‹‡†—†‡”ͷŠ‡ƒ†•‘ˆ‹…‘‡Ǣ‹–‹•–Š‡–‘„‡ƒ†Œ—•–‡†™‹–Š
”‡ˆ‡”‡…‡–‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡ƒšŽƒ™•‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”Ǥ

Particulars Amount (Rs.)

Income under the head :
Ϊ…‘‡ˆ”‘ƒŽƒ”‹‡• 
Ϊ…‘‡ˆ”‘‘—•‡”‘’‡”–› 
Ϊ”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ 
Ϊƒ’‹–ƒŽ‰ƒ‹• 
Ϊ…‘‡ˆ”‘‘–Š‡”•‘—”…‡• 
†Œ—•–‡–‹”‡•’‡…–‘ˆǣ
ΪŽ—„„‹‰‘ˆ…‘‡ 
Ȃ‡–‘ˆˆƒ†…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••‡• ȋȌ
= Gross Total Income XXX
Ȃ‡†—…–‹‘•—†‡”•‡…–‹‘ͺͲ–‘ͺͲȋ‘”Šƒ’–‡”Ȍ ȋȌ
α‘–ƒŽ…‘‡ 

TAX RATES FOR FY 2021-22 i.e. AY 2022-23

ƒŽ…—Žƒ–‹‘‘ˆƒš‘…‘‡
¾ ƒš”ƒ–‡†‡’‡†•—’‘–Š‡…ƒ–‡‰‘”›‘ˆ’‡”•‘
¾ ‘—–‘ˆ‹…‘‡
¾ ‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ’‡”•‘
¾ ‰‡‘ˆ‹†‹˜‹†—ƒŽ
¾ ›’‡‘ˆ…‘‡

‘’‘‡–•‘ˆƒšƒ”‡

ƒšƒ–‡•ˆ‘”‹ˆˆ‡”‡––›’‡•‘ˆ’‡”•‘†‡’‡†‹‰—’‘˜ƒ”‹‘—•’ƒ”ƒ‡–‡”•ǣ
1. For :
¾ ‡•‹†‡–†‹˜‹†—ƒŽ‘ˆ–Š‡ƒ‰‡„‡Ž‘™͸Ͳ›‡ƒ”•
¾ ‘‡•‹†‡–†‹˜‹†—ƒŽ
¾ ‹†——†‹˜‹†‡†ˆƒ‹Ž›
¾ ••‘…‹ƒ–‹‘‘ˆ‡”•‘•
¾ ‘†›‘ˆ†‹˜‹†—ƒŽ•ȋ‘–Š‡”–Šƒ‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ȍ
¾ ”–‹ϐ‹…‹ƒŽ —”‹†‹…ƒŽ‡”•‘
 68 Lesson 2 Ȉ EP-TL

Total Income (Rs.) Tax Rate Tax liability (Rs.)

’–‘ʹǡͷͲǡͲͲͲ ‹Ž ‹Ž
ʹǡͷͲǡͲͲͳȂͷǡͲͲǡͲͲͲ ͷΨ ͷΨ‘ˆȋ‘–ƒŽ…‘‡ȂʹǡͷͲǡͲͲͲȌ
ͷǡͲͲǡͲͲͳȂͳͲǡͲͲǡͲͲͲ ʹͲΨ ʹͲΨ‘ˆȋ‘–ƒŽ…‘‡ȂͷǡͲͲǡͲͲͲȌΪͳʹǡͷͲͲ
„‘˜‡ͳͲǡͲͲǡͲͲͲ ͵ͲΨ ͵ͲΨ‘ˆȋ‘–ƒŽ…‘‡ȂͳͲǡͲͲǡͲͲͲȌΪͳǡͳʹǡͷͲͲ

2. Applicable for:
‡•‹†‡–‹†‹˜‹†—ƒŽ‘ˆ–Š‡ƒ‰‡‘ˆ͸Ͳ›‡ƒ”•‘”‘”‡„—–Ž‡••–Šƒ‡‹‰Š–››‡ƒ”•ƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”

Total Income (Rs.) Tax Rate Tax liability (Rs.)

’–‘͵ǡͲͲǡͲͲͲ ‹Ž ‹Ž
͵ǡͲͲǡͲͲͳȂͷǡͲͲǡͲͲͲ ͷΨ ͷΨ‘ˆȋ‘–ƒŽ…‘‡Ȃ͵ǡͲͲǡͲͲͲȌ
ͷǡͲͲǡͲͲͳȂͳͲǡͲͲǡͲͲͲ ʹͲΨ ʹͲΨ‘ˆȋ‘–ƒŽ…‘‡ȂͷǡͲͲǡͲͲͲȌΪͳͲǡͲͲͲ
„‘˜‡ͳͲǡͲͲǡͲͲͲ ͵ͲΨ ͵ͲΨ‘ˆȋ‘–ƒŽ…‘‡ȂͳͲǡͲͲǡͲͲͲȌΪͳǡͳͲǡͲͲͲ
3. Applicable for :
‡•‹†‡–†‹˜‹†—ƒŽ‘ˆ–Š‡ƒ‰‡‘ˆͺͲ›‡ƒ”•‘”‘”‡ƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”

Total Income (Rs.) Tax Rate Tax liability (Rs.)

’–‘ͷǡͲͲǡͲͲͲ ‹Ž ‹Ž
ͷǡͲͲǡͲͲͳȂͳͲǡͲͲǡͲͲͲ ʹͲΨ ʹͲΨ‘ˆȋ‘–ƒŽ…‘‡ȂͷǡͲͲǡͲͲͲȌ
„‘˜‡ͳͲǡͲͲǡͲͲͲ ͵ͲΨ ͵ͲΨ‘ˆȋ‘–ƒŽ…‘‡ȂͳͲǡͲͲǡͲͲͲȌΪͳǡͲͲǡͲͲͲ
Šƒ•…Žƒ”‹ϐ‹‡†˜‹†‡‹”…—Žƒ”‘ǤʹͺȀʹͲͳ͸ʹ͹ǤͲ͹ǤʹͲͳ͸ǡ–Šƒ–ƒ’‡”•‘„‘”‘ͳ•–’”‹Ž™‘—Ž†„‡…‘•‹†‡”‡†–‘
Šƒ˜‡ƒ––ƒ‹‡†ƒ’ƒ”–‹…—Žƒ”ƒ‰‡‘͵ͳ•–ƒ”…Šǡ–Š‡†ƒ›’”‡…‡†‹‰–Š‡ƒ‹˜‡”•ƒ”›‘ˆŠ‹•„‹”–Š†ƒ›Ǥ
Š‡”‡ˆ‘”‡ ƒ ”‡•‹†‡– ‹†‹˜‹†—ƒŽǡ ™Š‘•‡ ͸Ͳ–Š Ȁ ͺͲ–Š „‹”–Š†ƒ› ˆƒŽŽ• ‘ ͳ•–’”‹Žǡ ʹͲʹʹ ™‘—Ž† „‡ –”‡ƒ–‡† ƒ• Šƒ˜‹‰
ƒ––ƒ‹‡†–Š‡ƒ‰‡‘ˆ͸Ͳ›‡ƒ”•ȀͺͲ›‡ƒ”•‹–Š‡Ǥ”ǤʹͲʹͳǦʹʹǤ
4. For Firm and Local Authorities:

Types of person Tax Rates

‹”•ȋ‹…Ž—†‹‰Ȍ ͵ͲΨ‘ˆ–‘–ƒŽ…‘‡
‘…ƒŽ—–Š‘”‹–‹‡• ͵ͲΨ‘ˆ–‘–ƒŽ…‘‡

‘‘†–‘‘™ǣ–‹–›‘”‹†‹˜‹†—ƒŽ‘–Š‡”–Šƒƒ…‘’ƒ›™Š‘•‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡‡š…‡‡†••ǤʹͲ
lakhs is liable to pay Alternate Minimum tax @ 18.5%.

5. For Company

Domestic Company Assessment Year 2022-23

Ȉ Š‡”‡‹–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ ʹͷΨ

Ȉ Š‡”‡‹–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
ȏŠ‹• „‡‡ϐ‹– •ŠƒŽŽ „‡ ƒ˜ƒ‹Žƒ„Ž‡ ™Š‡ –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ …‘’ƒ› ‹•
ʹʹΨ
…‘’—–‡†™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ǡ‹…‡–‹˜‡•ǡ‡š‡’–‹‘•ƒ†
ƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ǤȐ
 Lesson 2 Ȉ Basic Concept of Income Tax 69

Ȉ Š‡”‡‹–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
ȏŠ‹•”‡‰‹‡•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›ˆ‘”–Š‡ƒ—ˆƒ…–—”‹‰…‘’ƒ‹‡•
ͳͷΨ
‹…‘”’‘”ƒ–‡†‹†‹ƒ‘‘”ƒˆ–‡”ͲͳǦͳͲǦʹͲͳͻǤ‡…‡ǡ‘Ž†…‘’ƒ‹‡•™‹ŽŽ ‘–„‡
ƒ„Ž‡–‘–ƒ‡–Š‡„‡‡ϐ‹–‘ˆ–Š‹••‡…–‹‘ǤȐ
Ȉ Š‡”‡ ‹– Šƒ• ‘– ‘’–‡† ˆ‘” ‡…–‹‘ ͳͳͷ ƒ† –Š‡ ‘–ƒŽ—”‘˜‡” ‘”

”‘••”‡…‡‹’–•‘ˆ–Š‡…‘’ƒ›‹–Š‡Žƒ•–’”‡˜‹‘—•›‡ƒ”†‘‡•‘– ‡š…‡‡†• ʹͷΨ
ͶͲͲ…”‘”‡”—’‡‡•
Ȉ ›‘–Š‡”†‘‡•–‹……‘’ƒ› ͵ͲΨ
Foreign Company 40%

Good to Know: A company is liable to pay MAT @ 15%.

6. For Co-operative Society:

Income Slabs Tax Rates

‹Ǥ Š‡”‡–Š‡–ƒšƒ„Ž‡‹…‘‡†‘‡•‘–‡š…‡‡†•ǤͳͲǡͲͲͲȀǦ ͳͲΨ‘ˆ–Š‡‹…‘‡

Š‡”‡–Š‡–ƒšƒ„Ž‡‹…‘‡‡š…‡‡†••ǤͳͲǡͲͲͲȀǦ„—–†‘‡• ‘– •ǤͳǡͲͲͲȀǦΪʹͲΨ‘ˆ‹…‘‡‹‡š…‡••‘ˆ•Ǥ

‹‹Ǥ
‡š…‡‡†•ǤʹͲǡͲͲͲȀǦ ͳͲǡͲͲͲȀǦ
•Ǥ͵ǤͲͲͲȀǦΪ͵ͲΨ‘ˆ–Š‡ƒ‘—–„›™Š‹…Š–Š‡
‹‹‹ Š‡”‡–Š‡–ƒšƒ„Ž‡‹…‘‡‡š…‡‡†••ǤʹͲǡͲͲͲȀǦ
–ƒšƒ„Ž‡‹…‘‡‡š…‡‡†••ǤʹͲǡͲͲͲȀǦ

Surcharge
—”…Šƒ”‰‡‹•ƒƒ††‹–‹‘ƒŽ–ƒš‹’‘•‡†‘…‡”–ƒ‹…ƒ•‡•Ǥ–‹•‹’‘•‡†‘˜‡”–Š‡„ƒ•‹…–ƒš”ƒ–‡…ƒŽ…—Žƒ–‡†‘–Š‡‹…‘‡Ǥ
For example ǣ—’’‘•‡–‘–ƒŽ–ƒšƒ„Ž‡‹…‘‡‘ˆƒ‹†‹˜‹†—ƒŽ‘ˆͶͷ›‡ƒ”•‹••Ǥͳǡ͵ͲǡͲͲǡͲͲͲǡ–Š‡ƒ•‡–ƒš™‹ŽŽ„‡ǣ•Ǥ
ͳǡͳʹǡͷͲͲΪ͵ͲΨ‘ˆȋͳǡʹͲǡͲͲǡͲͲͲȌα•Ǥ͵͹ǡͳʹǡͷͲͲǤ
—”…Šƒ”‰‡ ̷ͳʹΨȗ ‘ˆ •Ǥ ͵͹ǡͳʹǡͷͲͲ α •Ǥ ͶǡͶͷǡͷͲͲǤ Š‡”‡ ƒ”‡ †‹ˆˆ‡”‡– ”ƒ–‡ ‘ˆ •—”…Šƒ”‰‡ ’”‡•…”‹„‡† ‹ –Š‡
ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ

Ǥ
Types of person Income Surcharge Rates
‘Ǥ
‹Ǥ †‹˜‹†—ƒŽ•ǡ ǡǡ ˆ …‘‡ ‡š…‡‡†• •Ǥ ͷͲ ŽƒŠ• „—– †‘‡• ‘– ͳͲΨ‘ˆ‹…‘‡–ƒš
‡š…‡‡†•Ǥͳ…”‘”‡
ˆ ‹…‘‡ ‡š…‡‡†• •Ǥ ͳ …”‘”‡ „—– †‘‡• ‘– ͳͷΨ‘ˆ‹…‘‡–ƒš
‡š…‡‡†•Ǥʹ…”‘”‡
ˆ ‹…‘‡ ‡š…‡‡†• •Ǥ ʹ …”‘”‡ „—– †‘‡• ‘– ʹͷΨ‘ˆ‹…‘‡–ƒš
‡š…‡‡†•Ǥͷ…”‘”‡
ˆ–‘–ƒŽ‹…‘‡‡š…‡‡†••Ǥͷ…”‘”‡ ͵͹Ψ‘ˆ‹…‘‡–ƒš
‹‹ ‹”Ȁ‘…ƒŽ—–Š‘”‹–›Ȁ‘Ǧ‘’‡”ƒ–‹˜‡ ˆ‹…‘‡‡š…‡‡†••Ǥͳ…”‘”‡ ͳʹΨ‘ˆ‹…‘‡–ƒš
‘…‹‡–›
‹‹‹Ǥ ‘‡•–‹…‘’ƒ‹‡•ȗ ˆ ‹…‘‡ ‡š…‡‡†• •Ǥ ͳ …”‘”‡ „—– †‘‡• ‘– ͹Ψ‘ˆ‹…‘‡–ƒš
‡š…‡‡†•ǤͳͲ…”‘”‡•
ˆ‹…‘‡‡š…‡‡†••ǤͳͲ…”‘”‡ ͳʹΨ‘ˆ‹…‘‡–ƒš
‹˜Ǥ ‘’ƒ‹‡• ‘–Š‡”–Šƒ ƒ †‘‡•–‹… ˆ ‹…‘‡ ‡š…‡‡†• •Ǥ ͳ …”‘”‡ „—– †‘‡• ‘– ʹΨ‘ˆ‹…‘‡–ƒš
…‘’ƒ› ‡š…‡‡†•ǤͳͲ…”‘”‡•
ˆ‹…‘‡‡š…‡‡†••ǤͳͲ…”‘”‡ ͷΨ‘ˆ‹…‘‡–ƒš

ȗŠ‡”ƒ–‡‘ˆ•—”…Šƒ”‰‡‹…ƒ•‡‘ˆƒ…‘’ƒ›‘’–‹‰ˆ‘”–ƒšƒ„‹Ž‹–›—†‡”‡…–‹‘ͳͳͷ‘”‡…–‹‘ͳͳͷ•ŠƒŽŽ„‡
ͳͲΨ‹””‡•’‡…–‹˜‡‘ˆƒ‘—–‘ˆ–‘–ƒŽ‹…‘‡Ǥ
 70 Lesson 2 Ȉ EP-TL

Marginal Relief in Surcharge ǣ Š‡ ƒ ƒ••‡••‡‡ǯ• –ƒšƒ„Ž‡ ‹…‘‡ ‡š…‡‡†• •Ǥ ͳ …”‘”‡ǡ Š‡ ‹• Ž‹ƒ„Ž‡ –‘ ’ƒ›
—”…Šƒ”‰‡ƒ–’”‡•…”‹„‡†”ƒ–‡•‡–‹‘‡†ƒ„‘˜‡‘…‘‡ƒš’ƒ›ƒ„Ž‡„›Š‹Ǥ‘™‡˜‡”ǡ–Š‡ƒ‘—–‘ˆ …‘‡ƒš
ƒ†•—”…Šƒ”‰‡‘–‘–ƒŽ‹…‘‡•ŠƒŽŽ‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ‹…‘‡–Šƒ–‡š…‡‡†••Ǥͳ…”‘”‡Ǥ
Example ǣ—’’‘•‡”Ǥƒƒ‹†‹˜‹†—ƒŽƒ••‡••‡‡‘ˆͶʹ›‡ƒ”•‹•Šƒ˜‹‰–ƒšƒ„Ž‡‹…‘‡‘ˆ•ǤͳǡͲͲǡͲͳǡͲͲͲȀǦ

Particulars Amount (Rs.)

ͳǤ …‘‡ƒš •ǤʹͺǡͳʹǡͺͲͲ
ʹǤ —”…Šƒ”‰‡̷ͳͷΨ‘ˆ…‘‡ƒš •ǤͶǡʹͳǡͻʹͲ
͵Ǥ …‘‡ƒš‘‹…‘‡‘ˆ•Ǥͳ…”‘”‡ •ǤʹͺǡͳʹǡͷͲͲ
ͶǤ ƒš‹——”…Šƒ”‰‡’ƒ›ƒ„Ž‡ȋ…‘‡‘˜‡”•Ǥͳ…”‘”‡‹Ǥ‡Ǥ•ǤͳǡͲͲͲȌ •ǤͳǡͲͲͲ
ͷǤ ȋ…‘‡ƒšΪ—”…Šƒ”‰‡Ȍ’ƒ›ƒ„Ž‡ •Ǥʹͺǡͳ͵ǡͷͲͲ

Š—•ǡ‹–Š‡ƒ„‘˜‡…ƒ•‡ǡ–Š‘—‰Š–Š‡•—”…Šƒ”‰‡̷ͳͷΨ‹••ǤͶʹͳͻʹͲǤ‘™‡˜‡”ǡ•‹…‡–Š‡‹…‘‡‘ˆ”Ǥƒ‡š…‡‡†•
•Ǥͳ…”‘”‡„›Œ—•–•ǤͳǡͲͲͲǡƒ™‹ŽŽ„‡‡Ž‹‰‹„Ž‡ˆ‘”ƒ”‰‹ƒŽ”‡Ž‹‡ˆƒ†ƒš‹—•—”…Šƒ”‰‡™‹ŽŽ„‡”‡•–”‹…–‡†–‘•Ǥ
ͳǡͲͲͲ‘Ž›Ǥ
Cess
¾
‘˜‡”‡–•”‡•‘”––‘‹’‘•‹–‹‘‘ˆ…‡••ˆ‘”‡‡–‹‰•’‡…‹ϐ‹…‡š’‡†‹–—”‡
¾ †—…ƒ–‹‘‡••ƒ†‡‹‘”ƒ†‹‰Š‡”†—…ƒ–‹‘‡••ƒ”‡ƒ††‹–‹‘ƒŽŽ‡˜›‘–Š‡„ƒ•‹…–ƒšŽ‹ƒ„‹Ž‹–›Ϊ•—”…Šƒ”‰‡ǡ
‹ˆƒ’’Ž‹…ƒ„Ž‡Ǥ
¾ ƒ–‡‘ˆ†—…ƒ–‹‘‡••‹•ʹΨ
¾ ƒ–‡‘ˆ‹•ͳΨǤ
¾ ƒ–‡‘ˆ‡ƒŽ–Š‡••‹•ͳΨǤ

Special Tax Regime for Individual and HUFs [Section 115BAC]

Š‡ ‹ƒ…‡ …–ǡ ʹͲʹͲǡ Šƒ• ’”‘˜‹†‡† ƒ ‘’–‹‘ –‘ †‹˜‹†—ƒŽ• ƒ†   ˆ‘” ’ƒ›‡– ‘ˆ –ƒš‡• ƒ– –Š‡ ˆ‘ŽŽ‘™‹‰
”‡†—…‡†”ƒ–‡•ˆ”‘••‡••‡–‡ƒ”ʹͲʹͳǦʹʹƒ†‘™ƒ”†•ǣ

Total Income (Rs) Rate

’–‘ʹǡͷͲǡͲͲͲ ‹Ž
”‘ʹǡͷͲǡͲͲͳ–‘ͷǡͲͲǡͲͲͲ ͷΨ
”‘ͷǡͲͲǡͲͲͳ–‘͹ǡͷͲǡͲͲͲ ͳͲΨ
”‘͹ǡͷͲǡͲͲͳ–‘ͳͲǡͲͲǡͲͲͲ ͳͷΨ
”‘ͳͲǡͲͲǡͲͲͳ–‘ͳʹǡͷͲǡͲͲͲ ʹͲΨ
”‘ͳʹǡͷͲǡͲͲͳ–‘ͳͷǡͲͲǡͲͲͲ ʹͷΨ
„‘˜‡ͳͷǡͲͲǡͲͲͲ ͵ͲΨ

Surcharge: —”…Šƒ”‰‡‹•Ž‡˜‹‡†‘–Š‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒšƒ–ˆ‘ŽŽ‘™‹‰”ƒ–‡•‹ˆ–‘–ƒŽ‹…‘‡‘ˆƒƒ••‡••‡‡‡š…‡‡†•
•’‡…‹ϐ‹‡†Ž‹‹–•ǣ

Rs. 50 Lakhs Rs. 1 Crore to Rs.2 Rs. 2 Crores to Rs. Rs. 5 crores to Rs. Exceeding Rs. 10
to Rs. 1 Crore Crores 5 Crores 10 Crores Crores
ͳͲΨ ͳͷΨ ʹͷΨ ͵͹Ψ ͵͹Ψ
Note: ƒ”‰‹ƒŽ”‡Ž‹‡ˆ‹•ƒ˜ƒ‹Žƒ„Ž‡ˆ”‘•—”…Šƒ”‰‡Ǥ
‡ƒŽ–Šƒ††—…ƒ–‹‘‡••ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••‹•Ž‡˜‹‡†ƒ––Š‡”ƒ–‡‘ˆͶΨ‘–Š‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒš’Ž—•
•—”…Šƒ”‰‡Ǥ
 Lesson 2 Ȉ Basic Concept of Income Tax 71

Alternate Minimum TaxǣŠ‡ ƒ••‡••‡‡ǯ• ‘’–‹‰ ˆ‘” –Š‹• •…Š‡‡ Šƒ˜‡ „‡‡ ‡’– ‘—– ‘ˆ –Š‡ ’—”˜‹‡™ ‘ˆŽ–‡”ƒ–‡
‹‹—ƒšȋȌǤ —”–Š‡”–Š‡’”‘˜‹•‹‘”‡Žƒ–‹‰–‘–Š‡…‘’—–ƒ–‹‘ǡ…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆ…”‡†‹–
•ŠƒŽŽ‘–ƒ’’Ž›–‘–Š‡•‡ƒ••‡••‡‡•Ǥ
Conditions:
ͳǤ Š‡‘’–‹‘–‘’ƒ›–ƒšƒ–Ž‘™‡””ƒ–‡••ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›‹ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ†‹˜‹†—ƒŽ‘” •‹•…‘’—–‡†
™‹–Š‘—–…Žƒ‹‹‰ˆ‘ŽŽ‘™‹‰‡š‡’–‹‘•‘”†‡†—…–‹‘•ǣ
ƒȌ ‡ƒ˜‡”ƒ˜‡Ž…‘…‡••‹‘ȏ‡…–‹‘ͳͲȋͷȌȐ
„Ȍ ‘—•‡‡–ŽŽ‘™ƒ…‡ȏ‡…–‹‘ͳͲȋͳ͵ȌȐ
…Ȍ ˆϐ‹…‹ƒŽƒ†’‡”•‘ƒŽƒŽŽ‘™ƒ…‡•ȋ‘–Š‡”–Šƒ–Š‘•‡ƒ•ƒ›„‡’”‡•…”‹„‡†Ȍȏ‡…–‹‘ͳͲȋͳͶȌȐ
†Ȍ ŽŽ‘™ƒ…‡•–‘•Ȁ•ȏ‡…–‹‘ͳͲȋͳ͹ȌȐ
‡Ȍ ŽŽ‘™ƒ…‡•ˆ‘”‹…‘‡‘ˆ‹‘”ȏ‡…–‹‘ͳͲȋ͵ʹȌȐ
ˆȌ ‡†—…–‹‘ˆ‘”—‹–•‡•–ƒ„Ž‹•Š‡†‹’‡…‹ƒŽ…‘‘‹…‘‡•ȋȌȏ‡…–‹‘ͳͲȐ
‰Ȍ –ƒ†ƒ”†‡†—…–‹‘ȏ‡…–‹‘ͳ͸ȋ‹ƒȌȐ
ŠȌ –‡”–ƒ‹‡–ŽŽ‘™ƒ…‡ȏ‡…–‹‘ͳ͸ȋȋ‹‹ȌȐ
‹Ȍ ”‘ˆ‡••‹‘ƒŽƒšȏ‡…–‹‘ͳ͸ȋ‹‹‹ȌȐ
ŒȌ –‡”‡•–‘Š‘—•‹‰Ž‘ƒȏ‡…–‹‘ʹͶȋ„ȌȐ
Ȍ ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘‹”‡•’‡…–‘ˆ‡™’Žƒ–ƒ†ƒ…Š‹‡”›ȏ‡…–‹‘͵ʹȋͳȌȋ‹‹ƒȌȐ
ŽȌ ‡†—…–‹‘ˆ‘”‹˜‡•–‡–‹‡™’Žƒ–ƒ†ƒ…Š‹‡”›‹‘–‹ϐ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•ȏ‡…–‹‘͵ʹȐ
Ȍ ‡†—…–‹‘‹”‡•’‡…–‘ˆ–‡ƒǡ…‘ˆˆ‡‡‘””—„„‡”„—•‹‡••ȏ‡…–‹‘͵͵Ȑ
Ȍ ‡†—…–‹‘‹”‡•’‡…–‘ˆ„—•‹‡••…‘•‹•–‹‰‘ˆ’”‘•’‡…–‹‰‘”‡š–”ƒ…–‹‘‘”’”‘†—…–‹‘‘ˆ’‡–”‘Ž‡—‘”
ƒ–—”ƒŽ‰ƒ•‹†‹ƒȏ‡…–‹‘͵͵Ȑ
‘Ȍ ‡†—…–‹‘ˆ‘”†‘ƒ–‹‘ƒ†‡–‘ƒ’’”‘˜‡†•…‹‡–‹ϐ‹…”‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘ǡ—‹˜‡”•‹–›…‘ŽŽ‡‰‡‘”‘–Š‡”
‹•–‹–—–‡•ˆ‘”†‘‹‰•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™Š‹…Šƒ›‘”ƒ›‘–„‡”‡Žƒ–‡†–‘„—•‹‡••ȏ‡…–‹‘͵ͷȋͳȌȋ‹‹ȌȐ
’Ȍ ‡†—…–‹‘ˆ‘”’ƒ›‡–ƒ†‡–‘ƒ†‹ƒ…‘’ƒ›ˆ‘”†‘‹‰•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™Š‹…Šƒ›‘”ƒ›‘–
„‡”‡Žƒ–‡†–‘„—•‹‡••ȏ‡…–‹‘͵ͷȋͳȌȋ‹‹ƒȌȐ
“Ȍ ‡†—…–‹‘ˆ‘”†‘ƒ–‹‘ƒ†‡–‘—‹˜‡”•‹–›ǡ…‘ŽŽ‡‰‡ǡ‘”‘–Š‡”‹•–‹–—–‹‘ˆ‘”†‘‹‰”‡•‡ƒ”…Š‹•‘…‹ƒŽ
•…‹‡…‡‘”•–ƒ–‹•–‹…ƒŽ”‡•‡ƒ”…Šȏ‡…–‹‘͵ͷȋͳȌȋ‹‹‹ȌȐ
”Ȍ ‡†—…–‹‘ˆ‘”†‘ƒ–‹‘ƒ†‡ˆ‘”‘”‡š’‡†‹–—”‡‘•…‹‡–‹ϐ‹…”‡•‡ƒ”…Šȏ‡…–‹‘͵ͷȋʹȌȐ
•Ȍ ‡†—…–‹‘‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ ‡š’‡†‹–—”‡‹…—””‡†‹”‡•’‡…–‘ˆ…‡”–ƒ‹•’‡…‹ϐ‹‡†„—•‹‡••‡•ǡ‹Ǥ‡Ǥǡ
…‘Ž†…Šƒ‹ˆƒ…‹Ž‹–›ǡ™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–›ǡ‡–…Ǥȏ‡…–‹‘͵ͷȐ
–Ȍ ‡†—…–‹‘ˆ‘”‡š’‡†‹–—”‡‘ƒ‰”‹…—Ž–—”‡‡š–‡•‹‘’”‘Œ‡…–ȏ‡…–‹‘͵ͷȐ
—Ȍ ‡†—…–‹‘ˆ‘”ˆƒ‹Ž›‡•‹‘ȏ‡…–‹‘ͷ͹ȋ‹‹ƒȌȐ
˜Ȍ ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹…‘‡•‘–Š‡”–Šƒ •’‡…‹ϐ‹‡† —†‡” ‡…–‹‘ ͺͲ ǡ ͺͲȋʹȌƒ†
†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲˆ‘”‹–Ž‘…ƒ–‡†‹ ȏƒ”–‘ˆŠƒ’–‡”ǦȐǤ
ʹǤ ‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡‹•…ƒŽ…—Žƒ–‡†ƒˆ–‡”…Žƒ‹‹‰†‡’”‡…‹ƒ–‹‘—†‡”•‡…–‹‘͵ʹǡ‘–Š‡”–Šƒƒ††‹–‹‘ƒŽ
†‡’”‡…‹ƒ–‹‘ǡƒ†™‹–Š‘—–ƒ†Œ—•–‹‰„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‡•ƒ††‡’”‡…‹ƒ–‹‘ˆ”‘ƒ›‡ƒ”Ž‹‡” ›‡ƒ”ȋ‹ˆ•—…Š
Ž‘•• ‘” †‡’”‡…‹ƒ–‹‘ ’‡”–ƒ‹• –‘ƒ› †‡†—…–‹‘ —†‡” –Š‡ƒˆ‘”‡•ƒ‹† •‡…–‹‘•ȌǤ —”–Š‡”ǡŽ‘•• —†‡”–Š‡Š‡ƒ†
Š‘—•‡’”‘’‡”–›…ƒǯ–„‡•‡–‘ˆˆƒ‰ƒ‹•–‘–Š‡”Š‡ƒ†•‘ˆ…‘‡Ǥ‘”‡‘˜‡”ǡ•—…ŠŽ‘••ƒ† †‡’”‡…‹ƒ–‹‘™‹ŽŽ‘–„‡
…ƒ””‹‡†ˆ‘”™ƒ”†Ǥ
 72 Lesson 2 Ȉ EP-TL

͵Ǥ ˆ –Š‡ ƒ••‡••‡‡ Šƒ• ƒ› —ƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘ǡ ”‡Žƒ–‹‰ –‘ ƒ††‹–‹‘ƒŽ †‡’”‡…‹ƒ–‹‘ǡ ™Š‹…Š Šƒ• ‘– „‡‡
‰‹˜‡ˆ—ŽŽ‡ˆˆ‡…–ǡ–Š‡…‘””‡•’‘†‹‰ƒ†Œ—•–‡–•ŠƒŽŽ„‡ƒ†‡–‘‘ˆ–Š‡„Ž‘…‘ˆƒ••‡–•‹–Š‡’”‡•…”‹„‡†
ƒ‡”Ǥ
ͶǤ …ƒ•‡–Š‡ƒ••‡••‡‡Šƒ•„—•‹‡••‘”’”‘ˆ‡••‹‘ƒŽ‹…‘‡ǡ–Š‹•‘’–‹‘•ŠƒŽŽ„‡‡š‡”…‹•‡†‘‘”„‡ˆ‘”‡ –Š‡†—‡
†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”•‘ˆ‹…‘‡Ǥ
ͷǤ …‡–Š‡ƒ••‡••‡‡Šƒ•‡š‡”…‹•‡†–Š‡‘’–‹‘ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”ǡ‹–…ƒ‘–„‡•—„•‡“—‡–Ž›™‹–Š†”ƒ™ ˆ‘” –Š‡
•ƒ‡ ‘” ƒ› ‘–Š‡” ’”‡˜‹‘—• ›‡ƒ”ǤŠ‡ ‘’–‹‘ ‘…‡ ‡š‡”…‹•‡† ˆ‘” ƒ› ’”‡˜‹‘—• ›‡ƒ” …ƒ „‡™‹–Š†”ƒ™‘Ž›
‘…‡ ‹ •—„•‡“—‡– ’”‡˜‹‘—• ›‡ƒ” ȋ‘–Š‡” –Šƒ –Š‡ ›‡ƒ” ‹ ™Š‹…Š ‹– ™ƒ• ‡š‡”…‹•‡†Ȍ ƒ† –Š‡”‡ƒˆ–‡”ǡŠ‡•ŠƒŽŽ
‡˜‡”„‡‡Ž‹‰‹„Ž‡–‘‡š‡”…‹•‡–Š‹•‘’–‹‘ƒ‰ƒ‹‡š…‡’–™Š‡”‡•—…Š’‡”•‘…‡ƒ•‡•–‘ Šƒ˜‡ƒ›„—•‹‡••‹…‘‡Ǥ
͸Ǥ ˆƒ••‡••‡‡†‘‡•‘–Šƒ˜‡„—•‹‡••‘”’”‘ˆ‡••‹‘ƒŽ‹…‘‡ǡ–Š‡‘’–‹‘—•–„‡‡š‡”…‹•‡†ƒŽ‘‰™‹–Š–Š‡ ”‡–—”‘ˆ
‹…‘‡ˆ‘”‡˜‡”›’”‡˜‹‘—•›‡ƒ”Ǥˆƒƒ••‡••‡‡ǡƒˆ–‡”‘’–‹‰ˆ‘”‡…–‹‘ͳͳͷǡ…Žƒ‹•ƒ›‘ˆ – Š ‡  ’”‡•…”‹„‡†
†‡†—…–‹‘•‘”ƒŽŽ‘™ƒ…‡‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ–Š‡–Š‡‘’–‹‘–‘’ƒ›–ƒšƒ–…‘…‡••‹‘ƒŽ”ƒ–‡ •ŠƒŽŽ„‡…‘‡
‹˜ƒŽ‹†ˆ‘”–Šƒ–›‡ƒ”Ǥ

Special Tax Regime applicable to a Co-operative Societies [Section 115BAD]

Š‡ ‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹•‡”–‡†ƒ‡™•‡…–‹‘ͳͳͷ‹…‘‡Ǧ–ƒš…––‘’”‘˜‹†‡ƒ‘’–‹‘–‘–Š‡”‡•‹†‡–
…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•–‘‰‡––ƒš‡†ƒ––Š‡”ƒ–‡‘ˆʹʹΨ’Ž—•ͳͲΨ•—”…Šƒ”‰‡ƒ†ͶΨ…‡••ǤŠ‡”‡•‹†‡–…‘Ǧ‘’‡”ƒ–‹˜‡
•‘…‹‡–‹‡•Šƒ˜‡ƒ‘’–‹‘–‘‘’–ˆ‘”–ƒšƒ–‹‘—†‡”‡™Ž›‹–”‘†—…‡†•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–™Ǥ‡ǤˆǤ••‡••‡–
‡ƒ”ʹͲʹͳǦʹʹǤŠ‡‘’–‹‘‘…‡‡š‡”…‹•‡†—†‡”–Š‹••‡…–‹‘…ƒ‘–„‡•—„•‡“—‡–Ž›™‹–Š†”ƒ™ˆ‘”–Š‡•ƒ‡‘”ƒ›
‘–Š‡”’”‡˜‹‘—•›‡ƒ”Ǥ
ˆ –Š‡ ‡™ ”‡‰‹‡ ‘ˆ ‡…–‹‘ ͳͳͷ ‹• ‘’–‡† „› ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–›ǡ ‹–• ‹…‘‡ •ŠƒŽŽ „‡ …‘’—–‡† ™‹–Š‘—–
’”‘˜‹†‹‰ ˆ‘” •’‡…‹ϐ‹‡† ‡š‡’–‹‘ǡ †‡†—…–‹‘ ‘” ‹…‡–‹˜‡ ƒ˜ƒ‹Žƒ„Ž‡ —†‡” –Š‡ …–Ǥ Š‡ •‘…‹‡–‹‡• ‘’–‹‰ ˆ‘” –Š‹•
•‡…–‹‘ Šƒ˜‡ „‡‡ ‡’– ‘—– ‘ˆ –Š‡ ’—”˜‹‡™ ‘ˆ Ž–‡”ƒ–‡ ‹‹— ƒš ȋȌǤ —”–Š‡”ǡ –Š‡ ’”‘˜‹•‹‘ ”‡Žƒ–‹‰ –‘
…‘’—–ƒ–‹‘ǡ…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ‘ˆ…”‡†‹–•ŠƒŽŽ‘–ƒ’’Ž›–‘–Š‡•‡ƒ••‡••‡‡•Ǥ
Š‡‘’–‹‘–‘’ƒ›–ƒšƒ–Ž‘™‡””ƒ–‡••ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›‹ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ…‘‘’‡”ƒ–‹˜‡•‘…‹‡–›‹•…‘’—–‡†
™‹–Š‘—–…Žƒ‹‹‰ˆ‘ŽŽ‘™‹‰‡š‡’–‹‘•‘”†‡†—…–‹‘•ǣ
ƒȌ ‡†—…–‹‘ˆ‘”—‹–•‡•–ƒ„Ž‹•Š‡†‹’‡…‹ƒŽ…‘‘‹…‘‡•ȋȌȏ‡…–‹‘ͳͲȐǢ
„Ȍ ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘‹”‡•’‡…–‘ˆ‡™’Žƒ–ƒ†ƒ…Š‹‡”›ȏ‡…–‹‘͵ʹȋͳȌȋ‹‹ƒȌȐǢ
…Ȍ ‡†—…–‹‘ˆ‘”‹˜‡•–‡–‹‡™’Žƒ–ƒ†ƒ…Š‹‡”›‹‘–‹ϐ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•ȏ‡…–‹‘͵ʹȐǢ
†Ȍ ‡†—…–‹‘‹”‡•’‡…–‘ˆ–‡ƒǡ…‘ˆˆ‡‡‘””—„„‡”„—•‹‡••ȏ‡…–‹‘͵͵ȐǢ
‡Ȍ ‡†—…–‹‘‹”‡•’‡…–‘ˆ„—•‹‡••…‘•‹•–‹‰‘ˆ’”‘•’‡…–‹‰‘”‡š–”ƒ…–‹‘‘”’”‘†—…–‹‘‘ˆ’‡–”‘Ž‡—‘”ƒ–—”ƒŽ
‰ƒ•‹†‹ƒȏ‡…–‹‘͵͵ȐǢ
ˆȌ ‡†—…–‹‘ ˆ‘” †‘ƒ–‹‘ ƒ†‡ –‘ ƒ’’”‘˜‡† •…‹‡–‹ˆ‹… ”‡•‡ƒ”…Š ƒ••‘…‹ƒ–‹‘ǡ —‹˜‡”•‹–› …‘ŽŽ‡‰‡ ‘” ‘–Š‡”
‹•–‹–—–‡•ˆ‘”†‘‹‰•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™Š‹…Šƒ›‘”ƒ›‘–„‡”‡Žƒ–‡†–‘„—•‹‡••ȏ‡…–‹‘͵ͷȋͳȌȋ‹‹ȌȐǢ
‰Ȍ ‡†—…–‹‘ˆ‘”’ƒ›‡–ƒ†‡–‘ƒ†‹ƒ…‘’ƒ›ˆ‘”†‘‹‰•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™Š‹…Šƒ›‘”ƒ›‘–„‡
”‡Žƒ–‡†–‘„—•‹‡••ȏ‡…–‹‘͵ͷȋͳȌȋ‹‹ƒȌȐǢ
ŠȌ ‡†—…–‹‘ ˆ‘” †‘ƒ–‹‘ ƒ†‡ –‘ —‹˜‡”•‹–›ǡ …‘ŽŽ‡‰‡ǡ ‘” ‘–Š‡” ‹•–‹–—–‹‘ ˆ‘” †‘‹‰ ”‡•‡ƒ”…Š ‹ •‘…‹ƒŽ
•…‹‡…‡‘”•–ƒ–‹•–‹…ƒŽ”‡•‡ƒ”…Šȏ‡…–‹‘͵ͷȋͳȌȋ‹‹‹ȌȐǢ
‹Ȍ ‡†—…–‹‘ˆ‘”†‘ƒ–‹‘ƒ†‡–‘ƒ–‹‘ƒŽƒ„‘”ƒ–‘”›‘”•ǡ‡–…Ǥˆ‘”†‘‹‰•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™Š‹…Šƒ›‘”
ƒ›‘–„‡”‡Žƒ–‡†–‘„—•‹‡••ȏ‡…–‹‘͵ͷȋʹȌȐǢ
ŒȌ ‡†—…–‹‘‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹…—””‡†‹”‡•’‡…–‘ˆ…‡”–ƒ‹•’‡…‹ϐ‹‡†„—•‹‡••‡•ǡ‹Ǥ‡Ǥǡ…‘Ž†…Šƒ‹
ˆƒ…‹Ž‹–›ǡ™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–›ǡ‡–…Ǥȏ‡…–‹‘͵ͷȐǢ
Ȍ ‡†—…–‹‘ˆ‘”‡š’‡†‹–—”‡‘ƒ‰”‹…—Ž–—”‡‡š–‡•‹‘’”‘Œ‡…–ȏ‡…–‹‘͵ͷȐǢ
 Lesson 2 Ȉ Basic Concept of Income Tax 73

ŽȌ ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹…‘‡•‘–Š‡”–Šƒ•’‡…‹ϐ‹‡†—†‡”‡…–‹‘ͺͲ ȏƒ”–‘ˆŠƒ’–‡”ǦȐǤ

Š‡”‡ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–› ‡š‡”…‹•‡• ‘’–‹‘ ˆ‘” ƒ˜ƒ‹Ž‹‰ „‡‡ˆ‹– ‘ˆ Ž‘™‡” –ƒš ”ƒ–‡ —†‡” •‡…–‹‘ ͳͳͷǡ ‹–
•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘…Žƒ‹•‡–Ǧ‘ˆˆ‘ˆƒ›„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‡•‘”†‡’”‡…‹ƒ–‹‘ƒ––”‹„—–ƒ„Ž‡–‘ƒ›”‡•–”‹…–‡†
‡š‡’–‹‘‘”†‡†—…–‹‘‹–Š‡••‡••‡–‡ƒ”ˆ‘”™Š‹…Š–Š‡‘’–‹‘Šƒ•„‡‡‡š‡”…‹•‡†ƒ†ˆ‘”ƒ›•—„•‡“—‡–
••‡••‡–‡ƒ”Ǥ

Rebate under section 87A

ƒ••‡••‡‡ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽ”‡•‹†‡–‹†‹ƒǡ™Š‘•‡–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†•ǤͷǡͲͲǡͲͲͲ•ŠƒŽŽ„‡ ‡–‹–Ž‡†
–‘ƒ†‡†—…–‹‘ǡˆ”‘–Š‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒšȋƒ•…‘’—–‡†„‡ˆ‘”‡ƒŽŽ‘™‹‰–Š‡†‡†—…–‹‘•—†‡”–Š‹• Šƒ’–‡”Ȍ‘
Š‹•–‘–ƒŽ‹…‘‡™‹–Š™Š‹…ŠŠ‡‹•…Šƒ”‰‡ƒ„Ž‡ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ǡ‘ˆƒƒ‘—–‡“—ƒŽ–‘ͳͲͲΨ‘ˆ•—…Š‹…‘‡Ǧ–ƒš
‘”ƒƒ‘—–‘ˆ•ǤͳʹǡͷͲͲǡ™Š‹…Š‡˜‡”‹•Ž‡••Ǥ
Steps involved in calculation of Tax on Total Income

Particulars Amount Rs.

ƒš‘’‡…‹ƒŽ…‘‡•̷•’‡…‹ϐ‹‡†–ƒš”ƒ–‡•ȋ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹•̷ʹͲΨǢƒ•—ƒŽ…‘‡
̷͵ͲΨƒ†Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋ‘‡…—”‹–‹‡•–”ƒ•ƒ…–‹‘–ƒš’ƒ‹†•‡…—”‹–‹‡•Ȍ̷ͳͷΨ 
††ǣ ƒš‘ƒŽƒ…‡…‘‡̷Žƒ„ƒ–‡Ȁ Žƒ–ƒ–‡ȋƒ•ƒ’’Ž‹…ƒ„Ž‡Ȍ 
 Total Tax XXX
††ǣ —”…Šƒ”‰‡ǡ‹ˆƒ› 
‡••ǣ ƒ”‰‹ƒŽ‡Ž‹‡ˆǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ ȋȌ
 Tax including Surcharge XXX
††ǣ †—…ƒ–‹‘‡••̷ʹΨ‘–ƒš‹…Ž—†‹‰•—”…Šƒ”‰‡ 
††ǣ ̷ͳΨ‘–ƒš‹…Ž—†‹‰•—”…Šƒ”‰‡ 
††ǣ ‡ƒŽ–Š‡••̷ͳΨ‘–ƒš‹…Ž—†‹‰•—”…Šƒ”‰‡ȋ‘„‹‡†Ž›‡ƒŽ–Šƒ††—…ƒ–‹‘‡•• 
‘‹…‘‡–ƒš‹•Ž‡˜‹‡†̷ͶΨȌ

Tax liability XXX

††ǣ –‡”‡•–—†‡”‡…–‹‘ʹ͵ͶȀʹ͵ͶȀʹ͵Ͷ 
 Net tax liability (XXX)

Less : Taxes paid by way of :

Ȉ ƒš†‡†—…–‡†ƒ–•‘—”…‡ȋȌ ȋȌ

Ȉ †˜ƒ…‡–ƒš ȋȌ

Ȉ ‡Žˆ••‡••‡–ƒš ȋȌ

Ȉ ‘—„Ž‡ƒšƒ–‹‘‡Ž‹‡ˆ ȋȌ

Tax Payable/Refundable (XXX)

74 Lesson 2 Ȉ EP-TL

CASE LAWS
24.04.2020 M/S Kesharwani Sheetalaya (Appellant) v. CIT High Court
(Respondent)
ƒ•Š…”‡†‹–‡–”‹‡•‹„‘‘•‘ˆƒϔ‹”ǡ‹ƒ„•‡…‡‘ˆƒ–‡”‹ƒŽ–‘‹†‹…ƒ–‡–Šƒ––Š‡›™‡”‡‹–•’”‘ϔ‹–•ǡ…‘—Ž†‘–
„‡ƒ••‡••‡†‹–Š‡Šƒ†•‘ˆ–Š‡ϔ‹”Ǥ
Facts of the Case:Š‡ƒ••‡••‡‡™ƒ•ƒ’ƒ”–‡”•Š‹’ϐ‹”™‹–Š•‹š–‡‡’ƒ”–‡”•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ…‘Ž†
•–‘”ƒ‰‡Ǥ ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”ǡ–Š‡ƒ••‡••‡‡ϐ‹Ž‡†ƒ”‡–—”‘ˆ‹…‘‡™Š‹…Š™ƒ••‡Ž‡…–‡†ˆ‘”•…”—–‹›
ƒ†‘–‹…‡•—†‡”‡…–‹‘ͳͶ͵ȋʹȌȀͳͶʹȋͳȌ‘ˆ–Š‡…–™‡”‡‹••—‡†Ǥ
Š‡••‡••‹‰ˆϐ‹…‡”‘–‡†•‡˜‡”ƒŽ…”‡†‹–•‹–Š‡ƒ‡•‘ˆ–Š‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”ǤŠ‡••‡••‹‰ˆϐ‹…‡”Š‡Ž†
–Š‡ …”‡†‹–• ƒ• —’”‘˜‡† ƒ† ƒ†‡ ƒ ƒ††‹–‹‘ —†‡” ‡…–‹‘ ͸ͺ ‘ˆ –Š‡ …– ”‡Ž›‹‰ —’‘ ƒ †‡…‹•‹‘ ‘ˆ –Š‡
Œ—”‹•†‹…–‹‘ƒŽ‹‰Š‘—”–‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ••‡••‡‡Šƒ†‡–‡”‡††‡’‘•‹–•‹–Š‡„‘‘•‘ˆϐ‹”‹–Š‡ƒ‡•‘ˆ
’ƒ”–‡”•ƒ†—’‘–Š‡‡š’Žƒƒ–‹‘•ˆ‘”†‡’‘•‹–•„‡‹‰”‡Œ‡…–‡†–Š‡•ƒ‡™‡”‡–”‡ƒ–‡†ƒ•‹…‘‡‘ˆ–Š‡ϐ‹”ƒ†
‘–‘ˆ–Š‡‹†‹˜‹†—ƒŽ’ƒ”–‡”•Ǥ‘™‡˜‡”ǡ–Š‡ȋȌ’ƒ”–Ž›ƒŽŽ‘™‡†–Š‡ƒ’’‡ƒŽƒ†–Š‡ƒ††‹–‹‘ƒ†‡—Ȁ•͸ͺ‘ˆ–Š‡
…–™ƒ•†‡Ž‡–‡†ǤŠ‡†‡Ž‡–‹‘‘ˆ–Š‡…ƒ•Š…”‡†‹–•™ƒ•ƒ†‡‘–Š‡‰”‘—†–Šƒ––Š‡’ƒ”–‡”•Šƒ†•Š‘™ƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡‹–Š‡‹””‡–—”•Ǥ–™ƒ•–ƒ‡‘–‡‘ˆ–Šƒ––Š‡’ƒ”–‡”•™‡”‡‹†‡–‹ϐ‹ƒ„Ž‡ƒ†•‡’ƒ”ƒ–‡Ž›ƒ••‡••‡†–‘–ƒš
ƒ†–Š‡ϐ‹”Šƒ†‡š’Žƒ‹‡†–Š‡•‘—”…‡‘ˆ‹˜‡•–‡–ƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‘ˆ–Š‡’ƒ”–‡”•ǡ–Š‡”‡ˆ‘”‡ǡ‹ˆƒ–ƒŽŽƒ††‹–‹‘•
™‡”‡–‘„‡ƒ†‡ǡ–Š‡–Š‡•ƒ‡Šƒ†–‘„‡ƒ†‡‹–Š‡Šƒ†•‘ˆ–Š‡’ƒ”–‡”•ƒ†‘–‹–Š‡Šƒ†•‘ˆ–Š‡ϐ‹”Ǥ
‘™‡˜‡”–Š‡”‹„—ƒŽ’ƒ”–Ž›ƒŽŽ‘™‡†–Š‡ƒ’’‡ƒŽϐ‹Ž‡†„›–Š‡‡˜‡—‡ƒ††‹•‹••‡†–Š‡…”‘••Ǧ‘„Œ‡…–‹‘•ϐ‹Ž‡†„›
–Š‡ƒ••‡••‡‡ǤŠ‡”‹„—ƒŽŠ‡Ž†–Šƒ–…”‡†‹–•‹–Š‡ƒ‡•‘ˆ’ƒ”–‡”•ƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡™‡”‡‘–’”‘˜‡†
™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘͸ͺƒ†–Š‡”‡ˆ‘”‡–Š‡‘”†‡”‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”–”‡ƒ–‹‰–Š‡•ƒ‡–‘„‡ƒ•–Š‡
ϐ‹”ǯ•†‡‡‡†‹…‘‡ǡ™ƒ•”‡•–‘”‡†Ǥ
Judgement: Š‡‘ǯ„Ž‡‹‰Š‘—”–‘„•‡”˜‡†–Šƒ––Š‡…‘†‹–‹‘•ˆ‘”–Š‡ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ‡…–‹‘͸ͺƒ”‡ƒ•ˆ‘ŽŽ‘™•Ǧ
ȋ‹Ȍ –Š‡‡š‹•–‡…‡‘ˆ„‘‘•‘ˆƒ……‘—–•ƒ†‡„›–Š‡ƒ••‡••‡‡‹–•‡ŽˆǢ
ȋ‹‹Ȍ ƒ…”‡†‹–‡–”›‹–Š‡„‘‘•‘ˆƒ……‘—–Ǣƒ†
ȋ‹‹‹Ȍ –Š‡ƒ„•‡…‡‘ˆƒ•ƒ–‹•ˆƒ…–‘”›‡š’Žƒƒ–‹‘„›–Š‡ƒ••‡••‡‡ƒ„‘—––Š‡ƒ–—”‡ƒ†•‘—”…‡‘ˆ–Š‡ƒ‘—–…”‡†‹–‡†Ǥ
–Š‡‹•–ƒ–…ƒ•‡ǡ–Š‡‘ǯ„Ž‡‹‰Š‘—”–‘–‡†–Šƒ––Š‡’ƒ”–‡”•Šƒ†•Š‘™–Š‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹–Š‡‹”
’‡”•‘ƒŽ”‡–—”•‘ˆ–Š‡’ƒ•–›‡ƒ”•™Š‹…ŠŠƒ†„‡‡ƒ……‡’–‡†„›–Š‡†‡’ƒ”–‡–ƒ••—…ŠǤŠ‡’ƒ”–‡”•™‡”‡ƒŽŽ
‹†‡–‹ϐ‹ƒ„Ž‡ ƒ† •‡’ƒ”ƒ–‡Ž› ƒ••‡••‡†–‘–ƒšǤ Š‡•‘—”…‡‘ˆ‹˜‡•–‡– Šƒ˜‹‰ „‡‡ ‡š’Žƒ‹‡†ǡ ‹ –Š‡ ‡˜‡––Š‡
••‡••‹‰ˆϐ‹…‡”™ƒ•‘–•ƒ–‹•ϐ‹‡†–Š‡ƒ††‹–‹‘…‘—Ž†Šƒ˜‡„‡‡…‘•‹†‡”‡†‹–Š‡Šƒ†•‘ˆ–Š‡’ƒ”–‡”•ƒ†‘–‹–Š‡
Šƒ†•‘ˆ–Š‡ϐ‹”ǤŠ‡„—”†‡‘ˆ’”‘˜‹‰–Š‡•‘—”…‡‘ˆ–Š‡…”‡†‹–•Šƒ˜‹‰„‡‡•—ˆϐ‹…‹‡–Ž›‡š’Žƒ‹‡†–Š‡ƒ††‹–‹‘…‘—Ž†
‘–Šƒ˜‡„‡‡ƒ†‡‹–Š‡Šƒ†•‘ˆ–Š‡ϐ‹”‹–Š‡ˆƒ…–•‘ˆ–Š‡…ƒ•‡Ǥ
……‘”†‹‰Ž›ǡ –Š‡ ‘ǯ„Ž‡ ‹‰Š ‘—”– ƒ•™‡”‡† –Š‡ “—‡•–‹‘• ‘ˆ Žƒ™ ‹ ˆƒ˜‘—” ‘ˆ –Š‡ ƒ••‡••‡‡ ƒ† ƒ‰ƒ‹•– –Š‡
‡˜‡—‡ƒ†–Š‡ƒ’’‡ƒŽ™ƒ•ƒŽŽ‘™‡†Ǥ

09.07.2010 CIT (Appellant) v. Saurashtra Cement Ltd. (Respondent) Supreme Court

‹“—‹†ƒ–‡†ƒƒ‰‡•Ȃƒ’‹–ƒŽ‡…‡‹’–‘”‡˜‡—‡‡…‡‹’–ǫ
Facts of the Case:Š‡ƒ••‡••‡‡ǡ‡‰ƒ‰‡†‹–Š‡ƒ—ˆƒ…–—”‡‘ˆ…‡‡–‡–…Ǣ‡–‡”‡†‹–‘ƒƒ‰”‡‡‡–™‹–ŠȀ•
ƒŽ…Šƒ†ƒ‰ƒ”†—•–”‹‡•‹‹–‡†ǡ‘„ƒ›ǡȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘ƒ•Dz–Š‡•—’’Ž‹‡”dzȌ‘ͳ•–‡’–‡„‡”ǡͳͻ͸͹
ˆ‘”’—”…Šƒ•‡‘ˆƒ††‹–‹‘ƒŽ…‡‡–’Žƒ–ˆ”‘–Š‡ˆ‘”ƒ–‘–ƒŽ…‘•‹†‡”ƒ–‹‘‘ˆ•Ǥͳǡ͹ͲǡͲͲǡͲͲͲȀǦǤ•’‡”–Š‡–‡”•
‘ˆ …‘–”ƒ…–ǡ –Š‡ ƒ‘—– ‘ˆ …‘•‹†‡”ƒ–‹‘ ™ƒ• –‘ „‡ ’ƒ‹† „› –Š‡ ƒ••‡••‡‡ ‹ ˆ‘—” ‹•–ƒŽ‡–•Ǥ Š‡ ƒ‰”‡‡‡–
…‘–ƒ‹‡†ƒ…‘†‹–‹‘™‹–Š”‡‰ƒ”†–‘–Š‡ƒ‡”‹™Š‹…Š–Š‡ƒ…Š‹‡”›™ƒ•–‘„‡†‡Ž‹˜‡”‡†ƒ†–Š‡…‘•‡“—‡…‡•
‘ˆ†‡Žƒ›‹†‡Ž‹˜‡”›Ǥ
–Š‡‡˜‡–‘ˆ†‡Žƒ›•‹†‡Ž‹˜‡”‹‡•‡š…‡’––Š‡”‡ƒ•‘‘ˆ ‘”…‡ƒŒ‡—”‡ǡ–Š‡—’’Ž‹‡”••ŠƒŽŽ’ƒ›–Š‡—”…Šƒ•‡”•ƒ
ƒ‰”‡‡†ƒ‘—–„›™ƒ›‘ˆŽ‹“—‹†ƒ–‡††ƒƒ‰‡•™‹–Š‘—–’”‘‘ˆ‘ˆ†ƒƒ‰‡•ƒ…–—ƒŽŽ›•—ˆˆ‡”‡†ƒ––Š‡”ƒ–‡‘ˆͲǤͷΨ‘ˆ
–Š‡’”‹…‡‘ˆ–Š‡”‡•’‡…–‹˜‡ƒ…Š‹‡”›ƒ†‡“—‹’‡––‘™Š‹…Š–Š‡‹–‡•™‡”‡†‡Ž‹˜‡”‡†Žƒ–‡ǡˆ‘”‡ƒ…Š‘–Š‘ˆ
†‡Žƒ›‹†‡Ž‹˜‡”›…‘’Ž‡–‹‘Ǥ–‹•ˆ—”–Š‡”ƒ‰”‡‡†–Šƒ––Š‡–‘–ƒŽƒ‘—–‘ˆ•—…Šƒ‰”‡‡†Ž‹“—‹†ƒ–‡††ƒƒ‰‡••ŠƒŽŽ
‘–‡š…‡‡†ͷΨ‘ˆ–Š‡–‘–ƒŽ’”‹…‡‘ˆ–Š‡’Žƒ–ƒ†ƒ…Š‹‡”›ǤdzŠ‡•—’’Ž‹‡”†‡ˆƒ—Ž–‡†ƒ†ˆƒ‹Ž‡†–‘•—’’Ž›–Š‡’Žƒ–
Lesson 2 Ȉ Basic Concept of Income Tax 75

ƒ† ƒ…Š‹‡”› ‘ –Š‡ •…Š‡†—Ž‡† –‹‡ ƒ†ǡ –Š‡”‡ˆ‘”‡ǡ ƒ• ’‡” –Š‡ –‡”• ‘ˆ …‘–”ƒ…–ǡ –Š‡ ƒ••‡••‡‡ ”‡…‡‹˜‡† ƒ
ƒ‘—–‘ˆ•ǤͺǡͷͲǡͲͲͲȀǦˆ”‘–Š‡•—’’Ž‹‡”„›™ƒ›‘ˆŽ‹“—‹†ƒ–‡††ƒƒ‰‡•Ǥ
—”‹‰–Š‡…‘—”•‡‘ˆƒ••‡••‡–’”‘…‡‡†‹‰•ˆ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–‡ƒ”ǡƒ“—‡•–‹‘ƒ”‘•‡™Š‡–Š‡”–Š‡
•ƒ‹†ƒ‘—–”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡ƒ•†ƒƒ‰‡•™ƒ•ƒ…ƒ’‹–ƒŽ‘”ƒ”‡˜‡—‡”‡…‡‹’–Ǥ
Judgement:—’”‡‡‘—”–Š‡Ž†–Šƒ–‹–™ƒ•…Ž‡ƒ”ˆ”‘–Š‡ƒ‰”‡‡‡––Šƒ––Š‡Ž‹“—‹†ƒ–‡††ƒƒ‰‡•™‡”‡–‘„‡
…ƒŽ…—Žƒ–‡†ƒ–ͲǤͷ’‡”…‡–‘ˆ–Š‡’”‹…‡‘ˆ–Š‡”‡•’‡…–‹˜‡ƒ…Š‹‡”›ƒ†‡“—‹’‡–™Š‹…Š™‡”‡†‡Ž‹˜‡”‡†Žƒ–‡ǡˆ‘”
‡ƒ…Š‘–Š‘ˆ†‡Žƒ›ǡ™‹–Š‘—–’”‘‘ˆ‘ˆ–Š‡ƒ…–—ƒŽ†ƒƒ‰‡••—ˆˆ‡”‡†„›–Š‡ƒ••‡••‡‡‘ƒ……‘—–‘ˆ–Š‡†‡Žƒ›ǤŠ‡
†‡Žƒ›‹•—’’Ž›…‘—Ž†„‡‘ˆ–Š‡™Š‘Ž‡’Žƒ–‘”ƒ’ƒ”––Š‡”‡‘ˆ„—––Š‡†‡–‡”‹ƒ–‹‘‘ˆ†ƒƒ‰‡•™ƒ•‘–„ƒ•‡†
—’‘–Š‡…ƒŽ…—Žƒ–‹‘ƒ†‡‹”‡•’‡…–‘ˆŽ‘••‘ˆ’”‘ϐ‹–‘ƒ……‘—–‘ˆ•—’’Ž›‘ˆƒ’ƒ”–‹…—Žƒ”’ƒ”–‘ˆ–Š‡’Žƒ–Ǥ–™ƒ•
‡˜‹†‡––Šƒ––Š‡†ƒƒ‰‡•–‘–Š‡ƒ••‡••‡‡™‡”‡†‹”‡…–Ž›ƒ†‹–‹ƒ–‡Ž›Ž‹‡†™‹–Š–Š‡’”‘…—”‡‡–‘ˆƒ…ƒ’‹–ƒŽ
ƒ••‡–ǡ‹Ǥ‡Ǥǡ–Š‡…‡‡–’Žƒ–ǡ™Š‹…Š™‘—Ž†‘„˜‹‘—•Ž›Ž‡ƒ†–‘†‡Žƒ›‹…‘‹‰‹–‘‡š‹•–‡…‡‘ˆ–Š‡’”‘ϐ‹–Ǧƒ‹‰
ƒ’’ƒ”ƒ–—•ǡ ”ƒ–Š‡” –Šƒ ƒ ”‡…‡‹’– ‹ –Š‡ …‘—”•‡ ‘ˆ ’”‘ϐ‹–Ǧ‡ƒ”‹‰ ’”‘…‡••Ǥ ‘’‡•ƒ–‹‘ ’ƒ‹† ˆ‘” –Š‡ †‡Žƒ› ‹
’”‘…—”‡‡–‘ˆ…ƒ’‹–ƒŽƒ••‡–ƒ‘—–‡†–‘•–‡”‹Ž‹œƒ–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–‘ˆ–Š‡ƒ••‡••‡‡ƒ••—’’Ž‹‡”Šƒ†ˆƒ‹Ž‡†
–‘•—’’Ž›–Š‡’Žƒ–™‹–Š‹–‹‡ƒ••–‹’—Žƒ–‡†‹–Š‡ƒ‰”‡‡‡–ǤŠ‡ƒ‘—–”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡–‘™ƒ”†•
…‘’‡•ƒ–‹‘ˆ‘”•–‡”‹Ž‹œƒ–‹‘‘ˆ–Š‡’”‘ϐ‹–Ǧ‡ƒ”‹‰•‘—”…‡ƒ†‘–‹–Š‡‘”†‹ƒ”›…‘—”•‡‘ˆ‹–•„—•‹‡••ǡ™ƒ•ƒ
…ƒ’‹–ƒŽ”‡…‡‹’–‹–Š‡Šƒ†•‘ˆ–Š‡ƒ••‡••‡‡Ǥ

LESSON ROUND-UP

Ȉ ƒš‹•–Š‡ϐ‹ƒ…‹ƒŽ…Šƒ”‰‡‹’‘•‡†„›–Š‡
‘˜‡”‡–‘‹…‘‡ǡ…‘‘†‹–›‘”ƒ…–‹˜‹–›Ǥ
‘˜‡”‡–
‹’‘•‡•–™‘–›’‡•‘ˆ–ƒš‡•ƒ‡Ž›‹”‡…––ƒš‡•ƒ††‹”‡…––ƒš‡•Ǥ‹”‡…––ƒš‹•‘‡™Š‡”‡„—”†‡‘ˆ–ƒš‹•
†‹”‡…–Ž› ‘ –Š‡ ’ƒ›‡”Ǥ Š‹Ž‡ †‹”‡…– –ƒš ‹• ’ƒ‹† „› –Š‡ ’‡”•‘ ‘–Š‡” –Šƒ –Š‡ ’‡”•‘ ™Š‘ —–‹Ž‹œ‡• –Š‡
’”‘†—…–‘”•‡”˜‹…‡Ǥ
Ȉ Š‡ …‘‡ –ƒš …– …‘–ƒ‹• –Š‡ ’”‘˜‹•‹‘• ˆ‘” †‡–‡”‹ƒ–‹‘ ‘ˆ –ƒšƒ„Ž‡ ‹…‘‡ǡ †‡–‡”‹ƒ–‹‘ ‘ˆ –ƒš
Ž‹ƒ„‹Ž‹–›ǡ’”‘…‡†—”‡ˆ‘”ƒ••‡••‡–ǡƒ’’‡ƒŽǡ’‡ƒŽ–‹‡•ƒ†’”‘•‡…—–‹‘•Ǥ
Ȉ ˜‡”››‡ƒ”ƒ—†‰‡–‹•’”‡•‡–‡†„‡ˆ‘”‡–Š‡’ƒ”Ž‹ƒ‡–„›–Š‡ ‹ƒ…‡‹‹•–‡”Ǥ‡‘ˆ–Š‡‹’‘”–ƒ–
…‘’‘‡–•‘ˆ–Š‡—†‰‡–‹•–Š‡ ‹ƒ…‡‹ŽŽǤŠ‡‹ŽŽ…‘–ƒ‹•˜ƒ”‹‘—•ƒ‡†‡–••—…Šƒ•–Š‡”ƒ–‡•‘ˆ
‹…‘‡ –ƒš ƒ† ‘–Š‡” –ƒš‡•Ǥ Š‡ –Š‡ ‹ƒ…‡ ‹ŽŽ ‹• ƒ’’”‘˜‡† „› „‘–Š –Š‡ Š‘—•‡• ‘ˆ ’ƒ”Ž‹ƒ‡– ƒ†
”‡…‡‹˜‡•–Š‡ƒ••‡–‘ˆ”‡•‹†‡–ǡ‹–„‡…‘‡•–Š‡ ‹ƒ…‡…–Ǥ
Ȉ ‘Ž‡˜›‹…‘‡–ƒšǡ‘‡—•–Šƒ˜‡–Š‡—†‡”•–ƒ†‹‰‘ˆ–Š‡˜ƒ”‹‘—•…‘…‡’–•”‡Žƒ–‡†–‘–Š‡…Šƒ”‰‡‘ˆ–ƒš
Ž‹‡’”‡˜‹‘—•›‡ƒ”ǡƒ••‡••‡–›‡ƒ”ǡ…‘‡ǡ–‘–ƒŽ‹…‘‡ǡ’‡”•‘‡–…ǤŠ‡•‡ƒ”‡•—ƒ”‹œ‡†„‡Ž‘™ǣ
Ȉ Income : ‘ ’”‡…‹•‡ †‡ϐ‹‹–‹‘ ‘ˆ –Š‡ ™‘”† Ǯ…‘‡ǯ ‹• ƒ˜ƒ‹Žƒ„Ž‡ —†‡” –Š‡ …‘‡Ǧ–ƒš …–ǡ ͳͻ͸ͳǤ Š‡
†‡ϐ‹‹–‹‘‘ˆ…‘‡ƒ•‰‹˜‡‹‡…–‹‘ʹȋʹͶȌ‘ˆ–Š‡…–•–ƒ”–•™‹–Š–Š‡™‘”†‹…Ž—†‡•–Š‡”‡ˆ‘”‡–Š‡Ž‹•–‹•
‹…Ž—•‹˜‡‘–‡šŠƒ—•–‹˜‡Ǥ
Ȉ Assessee :  …‘‘ ’ƒ”Žƒ…‡ ‡˜‡”› –ƒš ’ƒ›‡” ‹• ƒ ƒ••‡••‡‡Ǥ ‘™‡˜‡”ǡ –Š‡ ™‘”† ƒ••‡••‡‡ Šƒ• „‡‡
†‡ϐ‹‡†‹‡…–‹‘ʹȋ͹Ȍ‘ˆ–Š‡…–ƒ……‘”†‹‰–‘™Š‹…Šƒ••‡••‡‡‡ƒ•ƒ’‡”•‘„›™Š‘ƒ›–ƒš‘”ƒ›
‘–Š‡”•—‘ˆ‘‡›ȋ‹Ǥ‡Ǥ‹–‡”‡•–ǡ’‡ƒŽ–›‡–…ǤȌ‹•’ƒ›ƒ„Ž‡—†‡”–Š‡…–Ǥ
Ȉ Person : …‘‡Ǧ–ƒš‹•…Šƒ”‰‡†‹”‡•’‡…–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‘ˆ‡˜‡”›’‡”•‘Ǥ
 ‡…‡ǡ‹–‹•‹’‘”–ƒ––‘‘™–Š‡†‡ϐ‹‹–‹‘‘ˆ–Š‡™‘”†’‡”•‘Ǥ
Ȉ ••‡••‡–›‡ƒ”‡ƒ•–Š‡’‡”‹‘†‘ˆ–™‡Ž˜‡‘–Š•…‘‡…‹‰‘ͳ•–’”‹Ž‡˜‡”››‡ƒ”Ǥ
Ȉ Previous year : …‘‡‡ƒ”‡†‹ƒ›‡ƒ”‹•–ƒšƒ„Ž‡‹–Š‡‡š–›‡ƒ”ǤŠ‡›‡ƒ”‹™Š‹…Š‹…‘‡‹•‡ƒ”‡†‹•
‘™ƒ•’”‡˜‹‘—•›‡ƒ”Ǥ
Ȉ ‘’—–ƒ–‹‘‘ˆ‹…‘‡ǣ…‘‡–ƒš‹•ƒ…Šƒ”‰‡‘–Š‡ƒ••‡••‡‡ǯ•‹…‘‡Ǥ…‘‡ƒšŽƒ™Žƒ›•†‘™–Š‡
’”‘˜‹•‹‘•ˆ‘”…‘’—–‹‰–Š‡–ƒšƒ„Ž‡‹…‘‡‘™Š‹…Š–ƒš‹•–‘„‡…Šƒ”‰‡†Ǥ
76 Lesson 2 Ȉ EP-TL

Ȉ ‘–ƒŽ‹…‘‡‘ˆƒƒ••‡••‡‡…ƒ‘–„‡…‘’—–‡†—Ž‡••–Š‡’‡”•‘ǯ•”‡•‹†‡–‹ƒŽ•–ƒ–—•‹†‹ƒ†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”‹•‘™Ǥ……‘”†‹‰–‘–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•ǡ–Š‡ƒ••‡••‡‡…ƒ‡‹–Š‡”„‡Ǣ
ȋ‹Ȍ ‡•‹†‡–‹†‹ƒ‘”
ȋ‹‹Ȍ ‘Ǧ”‡•‹†‡–‹†‹ƒǤ
Ȉ ‡…–‹‘͸‘ˆ–Š‡…‘‡Ǧ–ƒš…–’”‡•…”‹„‡•–Š‡–‡•–•–‘„‡ƒ’’Ž‹‡†–‘†‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒŽŽ
–ƒš’ƒ›‡”•ˆ‘”’—”’‘•‡•‘ˆ‹…‘‡Ǧ–ƒšǤŠ‡”‡ƒ”‡–Š”‡‡ƒŽ–‡”ƒ–‹˜‡–‡•–•–‘„‡ƒ’’Ž‹‡†ˆ‘”‹†‹˜‹†—ƒŽ•ǡ–™‘
ˆ‘”…‘’ƒ‹‡•ƒ†‹†—†‹˜‹†‡† ƒ‹Ž‹‡•ƒ†ϐ‹”•ǡƒ••‘…‹ƒ–‹‘•‘ˆ’‡”•‘•ǡ„‘†‹‡•‘ˆ‹†‹˜‹†—ƒŽ•ƒ†
ƒ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ’‡”•‘•Ǥ
Ȉ Residential status of Individual :Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ‹†‹˜‹†—ƒŽ‹•†‡–‡”‹‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡
ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ȋ‹Ȍ Condition 1 : ˆ‹†‹˜‹†—ƒŽ‹•‹†‹ƒ‹–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”ƒ–‘–ƒŽ’‡”‹‘†‘ˆͳͺʹ†ƒ›•‘”‘”‡Ǥ
ȋ‹‹Ȍ Condition 2 :ˆŠ‡Šƒ•„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•–͵͸ͷ†ƒ›•†—”‹‰–Š‡Ͷ›‡ƒ”•’”‡…‡†‹‰–Š‡’”‡˜‹‘—•
›‡ƒ”ƒ†Šƒ•„‡‡‹†‹ƒˆ‘”ƒ–Ž‡ƒ•–͸Ͳ†ƒ›•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ‘™‡˜‡”ǡ–Š‡…Žƒ—•‡‘ˆ͸Ͳ
†ƒ›•‹•‘–ƒ’’Ž‹…ƒ„Ž‡‹ˆƒ’‡”•‘‹•ǣ
Ȉ ‹–‹œ‡‘ˆ†‹ƒǡ™Š‘Ž‡ƒ˜‡•†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”ƒ•ƒ‡„‡”‘ˆ–Š‡…”‡™‘ˆƒ†‹ƒ
•Š‹’ǡ‘”ˆ‘”–Š‡’—”’‘•‡‘ˆ‡’Ž‘›‡–‘—–•‹†‡†‹ƒǤ
Ȉ ‹–‹œ‡‘ˆ†‹ƒ‘”‘ˆ†‹ƒ‘”‹‰‹‡‰ƒ‰‡†‘—–•‹†‡†‹ƒȋ™Š‡–Š‡”ˆ‘””‡†‡”‹‰•‡”˜‹…‡
‘—–•‹†‡‘”‘–Ȍƒ†™Š‘…‘‡•‘ƒ˜‹•‹––‘†‹ƒ‹ƒ›’”‡˜‹‘—•›‡ƒ”Ǥ
(iii) Condition 3 :
Ȉ ‹†‹˜‹†—ƒŽ™Š‘Šƒ•„‡‡ƒ‘Ǧ”‡•‹†‡–‹†‹ƒ‹ƒ–Ž‡ƒ•–‹‡‘—–‘ˆ–Š‡–‡’”‡˜‹‘—•
›‡ƒ”•’”‡…‡†‹‰–Šƒ–›‡ƒ”ǡƒ†Šƒ•†—”‹‰–Š‡•‡˜‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Šƒ–›‡ƒ”„‡‡
‹†‹ƒˆ‘”ƒ’‡”‹‘†‘ˆǡ‘”’‡”‹‘†•ƒ‘—–‹‰‹ƒŽŽ–‘͹ʹͻ†ƒ›•‘”Ž‡••Ǥ
Ȉ ƒ…‹–‹œ‡‘ˆ†‹ƒǡ‘”ƒ’‡”•‘‘ˆ†‹ƒ‘”‹‰‹ǡŠƒ˜‹‰–‘–ƒŽ‹…‘‡ǡ‘–Š‡”–Šƒ–Š‡‹…‘‡
ˆ”‘ˆ‘”‡‹‰•‘—”…‡•ǡ‡š…‡‡†‹‰ϐ‹ˆ–‡‡ŽƒŠ”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ™Š‘Šƒ•„‡‡
‹†‹ƒˆ‘”ƒ’‡”‹‘†‘”’‡”‹‘†•ƒ‘—–‹‰‹ƒŽŽ–‘‘‡Š—†”‡†ƒ†–™‡–›†ƒ›•‘”‘”‡
„—–Ž‡••–Šƒ‘‡Š—†”‡†ƒ†‡‹‰Š–›Ǧ–™‘†ƒ›•Ǣ‘”ȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲȐ”
Ȉ ƒ ‹†‹˜‹†—ƒŽǡ „‡‹‰ ƒ …‹–‹œ‡ ‘ˆ †‹ƒǡ Šƒ˜‹‰ –‘–ƒŽ ‹…‘‡ǡ ‘–Š‡” –Šƒ –Š‡ ‹…‘‡ ˆ”‘
ˆ‘”‡‹‰•‘—”…‡•ǡ‡š…‡‡†‹‰ϐ‹ˆ–‡‡ŽƒŠ”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡†‡‡‡†–‘
„‡”‡•‹†‡–‹†‹ƒ‹–Šƒ–’”‡˜‹‘—•›‡ƒ”ǡ‹ˆŠ‡‹•‘–Ž‹ƒ„Ž‡–‘–ƒš‹ƒ›‘–Š‡”…‘—–”›‘”
–‡””‹–‘”› „› ”‡ƒ•‘ ‘ˆ Š‹• †‘‹…‹Ž‡ ‘” ”‡•‹†‡…‡ ‘” ƒ› ‘–Š‡” …”‹–‡”‹ƒ ‘ˆ •‹‹Žƒ” ƒ–—”‡Ǥ
ȏ‡†‡†˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲȐǤ
 ‡•‹†‡– ƒ† ”†‹ƒ”‹Ž› ‡•‹†‡– Ǧ ƒ–‹•ϐ‹‡• ‡‹–Š‡” …‘†‹–‹‘ ͳ ‘” ʹǢ —– †‘‡• ‘– •ƒ–‹•ˆ›
…‘†‹–‹‘͵Ǥ
 ‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–Ǧƒ–‹•ϐ‹‡•ƒ›‘‡…‘†‹–‹‘ˆ”‘ͳƬʹƒ†…‘†‹–‹‘͵Ǥ
 ‘Ǧ”‡•‹†‡–Ǧ‘‡•‘–•ƒ–‹•ˆ›ƒ›…‘†‹–‹‘ˆ”‘ͳƒ†ʹǤ
Ȉ Residential status of HUF :Š‡–‡•––‘„‡ƒ’’Ž‹‡†–‘†‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ ǡ ‹”‘”
‘–Š‡” ••‘…‹ƒ–‹‘ ‘ˆ ‡”•‘• ‹• „ƒ•‡† —’‘ –Š‡ …‘–”‘Ž ƒ† ƒƒ‰‡‡– ‘ˆ –Š‡ ƒˆˆƒ‹”• ‘ˆ –Š‡ ƒ••‡••‡‡
…‘…‡”‡†Ǥ ǡϐ‹”‘”‘–Š‡”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‹••ƒ‹†–‘„‡”‡•‹†‡–‹†‹ƒ™‹–Š‹–Š‡‡ƒ‹‰
‘ˆ‡…–‹‘͸ȋʹȌ‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ‹ˆ†—”‹‰–Šƒ–›‡ƒ”–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ‹–•ƒˆˆƒ‹”•‹••‹–—ƒ–‡†
™Š‘ŽŽ›‘”’ƒ”–Ž›‹†‹ƒ†—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥˆ–Š‡…‘–”‘Žƒ†ƒƒ‰‡‡–‘ˆ‹–•ƒˆˆƒ‹”•‹•
•‹–—ƒ–‡†™Š‘ŽŽ›‘—–•‹†‡†‹ƒ†—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ǡ‹–‹•…‘•‹†‡”‡†‘”‡•‹†‡–Ǥ
Ȉ  …ƒ„‡Dz‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–dz
Ȉ ˆƒƒ‰‡”Ȁƒ”–ƒŠƒ•„‡‡ƒ‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒ‹–Š‡’”‡˜‹‘—•›‡ƒ”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡
–‡•–•ƒ’’Ž‹…ƒ„Ž‡–‘‹†‹˜‹†—ƒŽ•Ǥ
Lesson 2 Ȉ Basic Concept of Income Tax 77

Ȉ ‹”•ǡƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǡŽ‘…ƒŽƒ—–Š‘”‹–‹‡•ƒ†‘–Š‡”ƒ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ’‡”•‘•…ƒ„‡‡‹–Š‡””‡•‹†‡–
ȋ‘”†‹ƒ”‹Ž›”‡•‹†‡–Ȍ‘”‘Ǧ”‡•‹†‡–‹†‹ƒ„—––Š‡›…ƒ‘–„‡‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒǤ
Ȉ Residential status of Companies : ŽŽ†‹ƒ…‘’ƒ‹‡•™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘ʹȋʹ͸Ȍ‘ˆ–Š‡…–
ƒ”‡ ƒŽ™ƒ›• ”‡•‹†‡– ‹ †‹ƒ ”‡‰ƒ”†Ž‡•• ‘ˆ –Š‡ ’Žƒ…‡ ‘ˆ ‡ˆˆ‡…–‹˜‡ ƒƒ‰‡‡–Ǥ  –Š‡ …ƒ•‡ ‘ˆ ƒ ˆ‘”‡‹‰
…‘’ƒ› –Š‡ ’Žƒ…‡ ‘ˆ ‡ˆˆ‡…–‹˜‡ ƒƒ‰‡‡– ȋȌ ‘ˆ –Š‡ ƒˆˆƒ‹”• ‹• –Š‡ „ƒ•‹•  ™Š‹…Š –Š‡ …‘’ƒ›ǯ•
”‡•‹†‡–‹ƒŽ•–ƒ–—•‹•†‡–‡”‹ƒ„Ž‡Ǥ
Ȉ Basis of charge : ‡…–‹‘Ͷ‘ˆ–Š‡…–‹•–Š‡…Šƒ”‰‹‰•‡…–‹‘™Š‹…Š‹’‘•‡•ƒ…Šƒ”‰‡ƒ†’”‘˜‹†‡•”—Ž‡•
ˆ‘”™‘”‹‰‘—––Š‡…Šƒ”‰‡•‘‹’‘•‡†Ǥ
 ‡…–‹‘Ͷ‘ˆ–Š‡…–‹’‘•‡•ƒ…Šƒ”‰‡‘ˆ–ƒš‘–Š‡–‘–ƒŽ‘”–ƒšƒ„Ž‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ǤŠ‡‡ƒ‹‰
ƒ†•…‘’‡‘ˆ–Š‡‡š’”‡••‹‘‘ˆ–‘–ƒŽ‹…‘‡‹•…‘–ƒ‹‡†‹‡…–‹‘ͷǤŠ‡–‘–ƒŽ‹…‘‡‘ˆƒƒ••‡••‡‡
…ƒ‘–†‡–‡”‹‡†—Ž‡••™‡‘™–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǤŠ‡•…‘’‡‘ˆ
–‘–ƒŽ‹…‘‡ƒ†…‘•‡“—‡–Ž›–Š‡Ž‹ƒ„‹Ž‹–›–‘‹…‘‡Ǧ–ƒšƒŽ•‘†‡’‡†•—’‘–Š‡ˆ‘ŽŽ‘™‹‰ˆƒ…–•ǣ
Ȉ ™Š‡–Š‡”–Š‡‹…‘‡ƒ……”—‡•‘”‹•”‡…‡‹˜‡†‹†‹ƒ‘”‘—–•‹†‡ǡ
Ȉ –Š‡‡šƒ…–’Žƒ…‡ƒ†’‘‹–‘ˆ–‹‡ƒ–™Š‹…Š–Š‡ƒ……”—ƒŽ‘””‡…‡‹’–‘ˆ‹…‘‡–ƒ‡•’Žƒ…‡ǡƒ†
Ȉ –Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡ƒ••‡••‡‡Ǥ

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ȋThese are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
Multiple Choice Questions ‘MCQs’
ͳǤ ƒ•‹…‡š‡’–‹‘ˆ‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ȋƒ••—‹‰ƒ••‡••‡‡Šƒ•‘–‡†
ˆ‘”‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳȌ‹•ǣ
ȋƒȌ•ǤͳͲͲͲͲ
ȋ„Ȍ•ǤͳͷͲͲͲ
ȋ…Ȍ•ǤʹͲͲͲͲ
ȋ†Ȍ‹Ž
•™‡”ǣȋ†Ȍ
ʹǤ ‡”•‘‹•†‡ϐ‹‡†—†‡”•‡…–‹‘̴̴̴̴̴‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ
ȋƒȌʹȋ͵ͳȌ
ȋ„Ȍʹȋ͹Ȍ
ȋ…ȌʹȋͻȌ
ȋ†Ȍ͵
•™‡”ǣȋƒȌ
͵Ǥ …‘‡‡ƒ”‡†„›ƒ‹•–ƒšƒ„Ž‡ƒ––Š‡”ƒ–‡‘ˆǣ
ȋƒȌͳͲΨ
ȋ„ȌʹͲΨ
ȋ…ȌʹͲΨ
ȋ†Ȍ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ
78 Lesson 2 Ȉ EP-TL

ͶǤ …‘‡‹•†‡ϐ‹‡†—†‡”•‡…–‹‘_____‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ

ȋƒȌʹȋ͵ͳȌ
ȋ„ȌʹȋʹͶȌ
ȋ…ȌʹȋͻȌ
ȋ†Ȍ͵
•™‡”ǣȋ„Ȍ
ͷǤ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ”‡˜‡—‡”‡…‡‹’–ǫȋ‹Ȍ‘’‡•ƒ–‹‘”‡…‡‹˜‡†ˆ‘”–Š‡Ž‘••‘ˆƒ…ƒ’‹–ƒŽƒ••‡–
ȋ‹‹Ȍ‘’‡•ƒ–‹‘”‡…‡‹˜‡†ˆ‘”†ƒƒ‰‡–‘‘”Ž‘••‘ˆƒ–”ƒ†‹‰ƒ••‡–Ǥȋ‹‹‹Ȍ”‘ϐ‹–•‘’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ
•Šƒ”‡•„›ƒ•Šƒ”‡„”‘‡”‘Š‹•‘™ƒ……‘—–Ǥȋ‹˜Ȍ…‘‡ˆ”‘Ž‡––‹‰‘—–„—‹Ž†‹‰•‘™‡†„›ƒ…‘’ƒ›
–‘‹–•‡’Ž‘›‡‡•‡–…Ǥ
ȋƒȌ ‹‘Ž›
ȋ„Ȍ ‹ƒ†‹‹„‘–Š
ȋ…Ȍ ‹ǡ‹‹ǡƒ†‹‹‹
ȋ†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋƒȌ
͸Ǥ Š‡ ‹…‹†‡…‡ ‘ˆ –ƒš ‘ ‹…‘‡ —†‡” –Š‡ …‘‡ –ƒš …–ǡ ͳͻ͸ͳ ‹• Ž‹‡† ™‹–Š ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ ƒ
ƒ••‡••‡‡Ǥƒǡƒ‹†‹˜‹†—ƒŽ„”‘—‰Š–‹–‘†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹ’ƒ•–—–ƒš‡†’”‘ϐ‹–•‘ˆ
•ǤʹǡͲͲǡͲͲͲ‘ˆ–Š‡„—•‹‡••‹Ǥ–ƒ–‡‹™Š‹…Š…ƒ•‡ƒ‘—–‘ˆ•ǤʹǡͲͲǡͲͲͲ„”‘—‰Š–‹–‘†‹ƒ„‡’—––‘
–ƒš‹ǤǤʹͲʹʹǦʹ͵™Š‡ƒ‹•ȋƒȌ‡•‹†‡–ƒ†”†‹ƒ”›”‡•‹†‡–ȋƬȌǢȋ„Ȍ‡•‹†‡–ƒ†‘–”†‹ƒ”›
”‡•‹†‡–ȋƬȌƒ†ȋ…Ȍ‘Ǧ‡•‹†‡–ȋȌǤ
ȋƒȌ ƒšƒ„Ž‡‹…ƒ•‡‘ˆƬƒ†Ƭ
ȋ„Ȍ ƒšƒ„Ž‡‹…ƒ•‡‘ˆƬƒ†‘‡•‹†‡–
ȋ…Ȍ ‘––ƒšƒ„Ž‡‹ƒŽŽƬǢƬƒ†‘Ǧ‡•‹†‡–
ȋ†Ȍ ƒšƒ„Ž‡‹ƒŽŽƬǢƬƒ†‘Ǧ‡•‹†‡–
•™‡”ǣȋ…Ȍ
͹Ǥ ƒ†Š‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ͲͳǤͲͶǤʹͲʹͳ–‘͵ͳǤͲ͵ǤʹͲʹʹ”‡…‡‹˜‡†ȋͳȌ‹˜‹†‡†ˆ”‘–†‘ˆǡƒ
‘”‡‹‰‘’ƒ›‘ˆ•ǤͳʹǡͲͲǡͲͲͲȋʹȌ‰”‹…—Ž–—”‡‹…‘‡ˆ”‘Žƒ†‹ƒŒƒ•–Šƒ‘ˆ•ǤͷͲǡͲͲͲȋ͵ȌŠ‘”–
–‡”…ƒ’‹–ƒŽ‰ƒ‹‘•ƒŽ‡‘ˆ•Šƒ”‡•‘ˆ†‹ƒ…‘’ƒ›”‡…‡‹˜‡†‹‘†‘‘ˆ•Ǥ͸ͲǡͲͲͲǤ‘–ƒŽ…‘‡‘ˆƒ†Š‹ƒ
™Š‡•Š‡‹•ƒ‡•‹†‡–ƒ†‘–”†‹ƒ”‹Ž›‡•‹†‡–ȋƬȌˆ‘”••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵•ŠƒŽŽ„‡ǣ
ȋƒȌ •Ǥͳ͵ǡͳͲǡͲͲͲ
ȋ„Ȍ •Ǥ͸ͲǡͲͲͲ
ȋ…Ȍ •ǤͳǡͳͲǡͲͲͲ
ȋ†Ȍ •ǤͳʹǡͲͲǡͲͲͲ
•™‡”ǣȋ„Ȍ
ͺǤ ‹–ƒƒƒ„‘”‹ǤǤ‹•ƒˆ‘”‡‹‰…‹–‹œ‡Ǥ‹•ˆƒ–Š‡”ƒ†Šƒƒƒ™ƒ•„‘”‹ƒŒƒ•–Šƒ‹ͳͻ͸Ͳƒ†
‘–Š‡”
‡‡–ƒ™ƒ•„‘”‹‘—–Šˆ”‹…ƒ‹ͳͻ͸ͷǤ‹•‰”ƒ†ˆƒ–Š‡”™ƒ•ƒŽ•‘„‘”‹ƒŒƒ•–Šƒ‹ͳͻ͵ͷǤ‹–ƒ
ƒƒˆ‘”–Š‡ϐ‹”•––‹‡–‘•‡‡Š‹•–‘”‹…ƒŽ’Žƒ…‡•…‘‡•–‘†‹ƒ‘ʹͷ–Š‘˜‡„‡”ǡʹͲʹͲƒ†”‡ƒ‹‡†–‹ŽŽ
—‡ǡʹͲʹͳˆ‘”ʹͲͲ†ƒ›•Ǥ‡•‹†‡–‹ƒŽ•–ƒ–—•ˆ‘”ƒ••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹ‘ˆ‹–ƒƒƒ•ŠƒŽŽ„‡ǣ
ȋƒȌ ‡•‹†‡–ƒ†”†‹ƒ”‹Ž›‡•‹†‡–
ȋ„Ȍ ‘–”†‹ƒ”‹Ž›‡•‹†‡–
ȋ…Ȍ ‘Ǧ‡•‹†‡–
ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ
Lesson 2 Ȉ Basic Concept of Income Tax 79

ͻǤ ‡…–‹‘ͺ͹’”‘˜‹†‡•ƒ”‡„ƒ–‡ˆ”‘–Š‡–ƒš’ƒ›ƒ„Ž‡„›ƒƒ••‡••‡‡ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽǡ™Š‘•‡–‘–ƒŽ‹…‘‡
†‘‡•‘–‡š…‡‡†̴̴̴̴̴̴̴̴̴̴̴̴̴ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹǤ
ȋƒȌ •ǤʹǡͷͲǡͲͲͲ
ȋ„Ȍ •Ǥ͵ǡͲͲǡͲͲͲ
ȋ…Ȍ •Ǥ͵ǡͷͲǡͲͲͲ
ȋ†Ȍ •ǤͷǡͲͲǡͲͲͲ
•™‡”ǣȋ‡Ȍ
ͳͲǤ ”‡•‹†‡–ƒ••‡••‡‡ǡ™Š‘‹•‘ˆ–Š‡ƒ‰‡‘ˆ͸Ͳ›‡ƒ”•‘”‘”‡„—–Ž‡••–ŠƒͺͲ›‡ƒ”•ƒ–ƒ›–‹‡†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹ•ŠƒŽŽ‘–„‡’ƒ›‹‰–ƒš‘‹…‘‡—’–‘̴̴̴̴̴̴̴̴„—–•ŠƒŽŽ„‡’ƒ›‹‰•—”…Šƒ”‰‡ƒ––Š‡
”ƒ–‡‘ˆ̴̴̴̴̴̴̴̴‘ˆ‹…‘‡–ƒš™Š‡”‡–‘–ƒŽ‹…‘‡‡š…‡‡†••Ǥͳ…”‘”‡Ǥ
ȋƒȌ •ǤʹǡͷͲǡͲͲͲǡͳͲΨ
ȋ„Ȍ •Ǥ͵ǡͲͲǡͲͲͲǡͳͲΨ
ȋ…Ȍ •ǤʹǡͷͲǡͲͲͲǡͳͷΨ
ȋ†Ȍ •Ǥ͵ǡͲͲǡͲͲͲǡͳͷΨ
•™‡”ǣȋ†Ȍ

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

 —–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
 —„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
 —–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 —„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES

Ȉ Income Tax Act, 1961: https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Ȉ Income Tax Rules, 1962: https://www.incometaxindia.gov.in/Pages/rules/income-tax rules-1962. aspx
Ȉ Circulars: https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
80 Lesson 2 Ȉ EP-TL
 Incomes which do not form
Lesson 3 Part of Total Income
Key Concepts One
Learning Objectives Lesson Outline
Should Know
To understand Ȉ ƒ…‰”‘—†
Ȉ š‡’–‹‘ Ȉ
‡‡”ƒŽš‡’–‹‘
Ȉ …‘‡™Š‹…Š†‘‡•‘–
Ȉ ‡†—…–‹‘ ˆ‘”’ƒ”–‘ˆ–Š‡‘–ƒŽ Ȉ š‡’–‹‘—†‡”
Ȉ ‡„ƒ–‡ …‘‡ •‡…–‹‘ͳͲ
Ȉ Š‡…‘†‹–‹‘•–‘„‡ Ȉ ’‡…‹ϐ‹…š‡’–‹‘
Ȉ ‰”‹…—Ž–—”‡…‘‡
•ƒ–‹•ϐ‹‡†ˆ‘”ƒ˜ƒ‹Ž‹‰ Ȉ ’‡…‹ƒŽ’”‘˜‹•‹‘•‹
‡š‡’–‹‘—†‡”•‡…–‹‘ ”‡•’‡…–‘ˆ‡™Ž›
ͳͲǡͳͲ ‡•–ƒ„Ž‹•Š‡†‹–•‹
’‡…‹ƒŽ…‘‘‹…‘‡
ȋ‡…–‹‘ͳͲȌ
Ȉ Ǧ
Ȉ 
Ȉ   


Ȉ  

Regulatory Framework
Sections Income Tax Act, 1961
‡…–‹‘ͳͲȋͳȌ ‰”‹…—Ž–—”ƒŽ…‘‡
‡…–‹‘ͳͲȋʹȌ ‘—–”‡…‡‹˜‡†„›ƒ‡„‡”‘ˆ–Š‡ ˆ”‘–Š‡‹…‘‡
‘ˆ–Š‡
‡…–‹‘ͳͲȋʹȌ Šƒ”‡‘ˆ’”‘ϐ‹–”‡…‡‹˜‡†„›ƒ’ƒ”–‡”ˆ”‘–Š‡ ‹”
‡…–‹‘ͳͲȋͶȌ –‡”‡•––‘‘Ǧ‡•‹†‡–•
‡…–‹‘ͳͲȋͶȌ –‡”‡•–‘‘–‹ϐ‹‡†•ƒ˜‹‰•…‡”–‹ϐ‹…ƒ–‡•
‡…–‹‘ͳͲȋͷȌ ‡ƒ˜‡”ƒ˜‡Ž‘…‡••‹‘
‡…–‹‘ͳͲȋ͸Ȍ ‡—‡”ƒ–‹‘ ”‡…‡‹˜‡† „› ‹†‹˜‹†—ƒŽ•ǡ ™Š‘ ƒ”‡ ‘–
…‹–‹œ‡•‘ˆ†‹ƒ
‡…–‹‘ͳͲȋ͸Ȍ ƒš’ƒ‹†‘„‡ŠƒŽˆ‘ˆˆ‘”‡‹‰…‘’ƒ›†‡”‹˜‹‰‹…‘‡
„›™ƒ›‘ˆ”‘›ƒŽ–›‘”ˆ‡‡• ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•
‡…–‹‘ͳͲȋ͸Ȍ ƒš’ƒ‹†‘„‡ŠƒŽˆ‘ˆˆ‘”‡‹‰…‘’ƒ›‘”‘Ǧ”‡•‹†‡–‹
”‡•’‡…–‘ˆ‘–Š‡”‹…‘‡
‡…–‹‘ͳͲȋ͸Ȍ ƒš ’ƒ‹† ‘ „‡ŠƒŽˆ ‘ˆ ˆ‘”‡‹‰
‘˜‡”‡– ‘” ˆ‘”‡‹‰
‡–‡”’”‹•‡†‡”‹˜‹‰‹…‘‡„› ™ƒ›‘ˆŽ‡ƒ•‡‘ˆƒ‹”…”ƒˆ–‘”
ƒ‹”…”ƒˆ–‡‰‹‡
‡…–‹‘ͳͲȋ͸Ȍ ‡…Š‹…ƒŽˆ‡‡•”‡…‡‹˜‡†„›ƒ‘–‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ›
‡…–‹‘ͳͲȋ͸Ȍ ‘›ƒŽ–›‘”ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›‡–„›–‘ƒ
‘”‡•‹†‡–
82 Lesson 3 Ȉ EP-TL

‡…–‹‘ͳͲȋ͹Ȍ ŽŽ‘™ƒ…‡Ȁ’‡”“—‹•‹–‡•–‘
‘˜‡”‡–‡’Ž‘›‡‡‘—–•‹†‡†‹ƒ

‡…–‹‘ͳͲȋͺȌ …‘‡‘ˆˆ‘”‡‹‰
‘˜‡”‡–‡’Ž‘›‡‡—†‡”…‘Ǧ‘’‡”ƒ–‹˜‡–‡…Š‹…ƒŽƒ••‹•–ƒ…‡’”‘‰”ƒ‡

‡…–‹‘ͳͲȋͺȌǡȋͺȌ ‡—‡”ƒ–‹‘‘”ˆ‡‡•”‡…‡‹˜‡†„›ƒ‘Ǧ”‡•‹†‡–…‘•—Ž–ƒ–Ȁ‹–•ˆ‘”‡‹‰‡’Ž‘›‡‡•

‡…–‹‘ͳͲȋͻȌ …‘‡ ‘ˆ ƒ ˆƒ‹Ž› ‡„‡” ‘ˆ ƒ ‡’Ž‘›‡‡ •‡”˜‹‰ —†‡” …‘Ǧ‘’‡”ƒ–‹˜‡ –‡…Š‹…ƒŽ
ƒ••‹•–ƒ…‡’”‘‰”ƒ‡
‡…–‹‘ͳͲȋͳͲȌ ‡–”‡…Š‡–…‘’‡•ƒ–‹‘
‡…–‹‘ͳͲȋͳͲȌ ‘’‡•ƒ–‹‘ˆ‘”Š‘’ƒŽ
ƒ•‡ƒ‹•ƒ•–‡”

‡…–‹‘ͳͲȋͳͲȌ ‘’‡•ƒ–‹‘‘ƒ……‘—–‘ˆƒ›†‹•ƒ•–‡”
‡…–‹‘ͳͲȋͳͲȌ ƒ›‡–ƒ––Š‡–‹‡‘ˆ˜‘Ž—–ƒ”›”‡–‹”‡‡–

‡…–‹‘ͳͲȋͳͲȌ ƒš‘’‡”“—‹•‹–‡•’ƒ‹†„›–Š‡‡’Ž‘›‡”
‡…–‹‘ͳͲȋͳͲȌ ‘—–’ƒ‹†‘Ž‹ˆ‡‹•—”ƒ…‡’‘Ž‹…›
‡…–‹‘ͳͲȋͳͳȌ ƒ›‡–ˆ”‘ƒ……‘—–‘’‡‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡—ƒ›ƒƒ”‹††Š‹ ……‘—–
—Ž‡•ǡʹͲͳͶ
‡…–‹‘ͳͲȋͳʹȌ ƒ›‡–ˆ”‘–Š‡ƒ–‹‘ƒŽ‡•‹‘›•–‡”—•––‘ƒ‡’Ž‘›‡‡

‡…–‹‘ͳͲȋͳʹȌ ƒ”–‹ƒŽ™‹–Š†”ƒ™ƒŽˆ”‘
‡…–‹‘ͳͲȋͳ͵Ȍ ƒ›‡–ˆ”‘ƒ’’”‘˜‡†•—’‡”ƒ—ƒ–‹‘ˆ—†‹•’‡…‹ϐ‹‡†…‹”…—•–ƒ…‡•ƒ†•—„Œ‡…––‘
…‡”–ƒ‹Ž‹‹–•
‡…–‹‘ͳͲȋͳͷȌ –‡”‡•–…‘‡•

‡…–‹‘ͳͲȋͳ͸Ȍ †—…ƒ–‹‘ƒŽ•…Š‘Žƒ”•Š‹’
‡…–‹‘ͳͲȋͳ͹Ȍ ƒ‹Ž›ƒŽŽ‘™ƒ…‡–‘ƒ‡„‡”‘ˆƒ”Ž‹ƒ‡–
‡…–‹‘ͳͲȋͳ͹Ȍ ™ƒ”†•

‡…–‹‘ͳͲȋͳͺȌ ‡•‹‘–‘‰ƒŽŽƒ–”›ƒ™ƒ”†™‹‡”

‡…–‹‘ͳͲȋͳͻȌ ƒ‹Ž›’‡•‹‘”‡…‡‹˜‡†„›–Š‡ˆƒ‹Ž›‡„‡”•‘ˆƒ”‡†ˆ‘”…‡•

‡…–‹‘ͳͲȋʹʹȌ …‘‡‘ˆƒ‡™•ƒ‰‡…›
‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆƒ’”‘ˆ‡••‹‘ƒŽƒ••‘…‹ƒ–‹‘

‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡”‡…‡‹˜‡†‘„‡ŠƒŽˆ‘ˆ‡‰‹‡–ƒŽ —†

‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆƒˆ—†‡•–ƒ„Ž‹•Š‡†ˆ‘”™‡Žˆƒ”‡‘ˆ‡’Ž‘›‡‡•
‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆ‡•‹‘ —†

‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡ˆ”‘Šƒ†‹‘”˜‹ŽŽƒ‰‡‹†—•–”›

‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆ‘•’‹–ƒŽ

‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆ—–—ƒŽ —†
‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆ‘–‹ϐ‹‡†˜‡•–‘””‘–‡…–‹‘ —†
‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆ–Š‡‘–‹ϐ‹‡†‹˜‡•–‘”’”‘–‡…–‹‘ˆ—†•‡–Ǧ—’„›…‘‘†‹–›‡š…Šƒ‰‡
Lesson 3 Ȉ Incomes which do not form Part of Total Income 83

‡…–‹‘ͳͲȋʹ͵Ȍ …‘‡‘ˆ˜‡•–‘””‘–‡…–‹‘ —†•‡–„›ƒ†‡’‘•‹–‘”›

‡…–‹‘ͳͲȋʹ͵ Ȍ …‘‡ ‘ˆ ƒ ˜‡–—”‡ …ƒ’‹–ƒŽ ˆ—† ‘” ƒ ˜‡–—”‡ …ƒ’‹–ƒŽ …‘’ƒ› ˆ”‘ ‹˜‡•–‡– ‹ ƒ
˜‡–—”‡…ƒ’‹–ƒŽ—†‡”–ƒ‹‰
‡…–‹‘ͳͲȋʹ͵ Ȍ …‘‡‘ˆƒ˜‡•–‡– —†
‡…–‹‘ͳͲȋʹ͵ Ȍ š‡’–‹‘ ‹ ”‡•’‡…– ‘ˆ …‡”–ƒ‹ ‹…‘‡ ‘ˆ ™Š‘ŽŽ› ‘™‡† •—„•‹†‹ƒ”› ‘ˆ „— Šƒ„‹
˜‡•–‡–—–Š‘”‹–›ƒ†‘˜‡”‡‹‰‡ƒŽ–Š —†
‡…–‹‘ͳͲȋʹͶȌ …‘‡‘ˆƒ‡‰‹•–‡”‡†”ƒ†‡‹‘

‡…–‹‘ͳͲȋʹͷȌ …‘‡‘ˆ”‘˜‹†‡– —†

‡…–‹‘ͳͲȋʹͷȌ …‘‡‘ˆ–Š‡’Ž‘›‡‡•ǯ–ƒ–‡•—”ƒ…‡ —†
‡…–‹‘ͳͲȋʹ͸Ȍ …‘‡‘ˆƒ‡„‡”‘ˆƒ…Š‡†—Ž‡†”‹„‡

‡…–‹‘ͳͲȋʹ͸Ȍ ’‡…‹ϐ‹‡†‹…‘‡‘ˆƒ‹‹‡•‡†‹˜‹†—ƒŽ

‡…–‹‘ͳͲȋ͵ʹȌ …‘‡‘ˆ‹‘”

‡…–‹‘ͳͲȋ͵ͶȌ …‘‡‘—›„ƒ…‘ˆŠƒ”‡•

‡…–‹‘ͳͲȋ͵ͻȌ …‘‡ˆ”‘‹–‡”ƒ–‹‘ƒŽ•’‘”–‹‰‡˜‡–

‡…–‹‘ͳͲȋͶͲȌ …‘‡”‡…‡‹˜‡†ƒ•‰”ƒ–„›ƒ•—„•‹†‹ƒ”›…‘’ƒ›
‡…–‹‘ͳͲȋͶͳȌ …‘‡ˆ”‘–”ƒ•ˆ‡”‘ˆƒ••‡–‘ˆƒ—†‡”–ƒ‹‰‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ‰‡‡”ƒ–‹‘ǡ
–”ƒ•‹••‹‘‘”†‹•–”‹„—–‹‘‘ˆ’‘™‡”

‡…–‹‘ͳͲȋͶʹȌ …‘‡‘ˆƒ„‘†›‘”ƒ—–Š‘”‹–›•‡–—’„›–™‘…‘—–”‹‡•

‡…–‹‘ͳͲȋͶ͵Ȍ ‡˜‡”•‡‘”–‰ƒ‰‡

‡…–‹‘ͳͲȋͶͶȌ ‡™‡•‹‘›•–‡”—•–

‡…–‹‘ͳͲȋͶ͸Ȍ š‡’–‹‘‘ˆǮ•’‡…‹ϐ‹‡†‹…‘‡ǯ‘ˆ…‡”–ƒ‹„‘†‹‡•‘”ƒ—–Š‘”‹–‹‡•

‡…–‹‘ͳͲȋͶ͹Ȍ š‡’–‹‘‘ˆ…‘‡‘ˆ‘–‹ϐ‹‡†Ǯˆ”ƒ•–”—…–—”‡†‡„–ˆ—†ǯ

‡…–‹‘ͳͲȋͶͺȌ š‡’–‹‘‘ˆ…‘‡‘ˆƒˆ‘”‡‹‰…‘’ƒ›ˆ”‘•ƒŽ‡‘ˆ”—†‡‹Ž‹†‹ƒ

‡…–‹‘ͳͲȋͶͺȌ š‡’–‹‘ ‘ˆ ‹…‘‡ ‘ˆ ˆ‘”‡‹‰ …‘’ƒ› ˆ”‘ •ƒŽ‡ ‘ˆ Ž‡ˆ–‘˜‡” •–‘… ‘ˆ …”—†‡ ‘‹Ž ‘
–‡”‹ƒ–‹‘‘ˆƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–

‡…–‹‘ͳͲȋͶͺȌ …‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘†‹ƒ–”ƒ–‡‰‹…‡–”‘Ž‡—‡•‡”˜‡•‹‹–‡†ȋȌ

‡…–‹‘ͳͲȋͶͻȌ š‡’–‹‘‘ˆ‹…‘‡‘ˆƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‘Ž†‹‰•‘’ƒ›

Rules Income Tax Rules, 1962

—Ž‡͹ …‘‡ˆ”‘ƒ—ˆƒ…–—”‡‘ˆ—„„‡”

—Ž‡͹ …‘‡ˆ”‘–Š‡ƒ—ˆƒ…–—”‡‘ˆ‘ˆˆ‡‡

—Ž‡ͺ …‘‡ˆ”‘‰”‘™‹‰ƒ†ƒ—ˆƒ…–—”‹‰‘ˆ‡ƒ
 84 Lesson 3 Ȉ EP-TL

BACKGROUND
…‘‡ƒš‹•…ƒŽ…—Žƒ–‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ’‡”•‘ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ ‘”’”‘˜‹†‹‰”‡Ž‹‡ˆ–‘–Š‡–ƒš’ƒ›‡”ǡ
…‘‡ ƒš Žƒ™• ’”‘˜‹†‡ ˆ‘” ‡š‡’–‹‘ǡ †‡†—…–‹‘ ƒ† ”‡„ƒ–‡Ǥ Š‡ ‡š‡’– ‹…‘‡ ‹• ‘ˆ–‡ …‘ˆ—•‡† ™‹–Š –Š‡
†‡†—…–‹‘•ƒ†”‡„ƒ–‡Ǥ‘™‡˜‡”–Š‡”‡‹•†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡•‡…‘…‡’–•ǤŠ‡•ƒ‡Šƒ•„‡‡‡š’Žƒ‹‡†‹–Š‡
–ƒ„Ž‡„‡Ž‘™ǣ

Ȉ š‡’–‹‘•ƒ”‡…Žƒ‹‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡•‘—”…‡‘ˆ‹…‘‡Ǥ
Exemptions Ȉ Š‡ ‡š‡’–‡† ‹…‘‡ ‹• ‘– ‹…Ž—†‡† ‹ –Š‡ –‘–ƒŽ …‘‡ ‘ˆ –Š‡
ƒ••‡••‡‡Ǥ

Ȉ ‡†—…–‹‘•ƒ”‡ƒŽŽ‘™‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡’ƒ›‡–•Ȁ‹˜‡•–‡–•
Deductions ƒ†‡Ǥ
Ȉ Š‡–ƒš†‡†—…–‹‘•ƒ”‡ƒŽŽ‘™‡†—†‡”†‹ˆˆ‡”‡–Š‡ƒ†•‘ˆ‹…‘‡ƒ•
™‡ŽŽƒ•ˆ”‘–Š‡‰”‘••‹…‘‡Ǥ

Ȉ ‡„ƒ–‡ ‹• ƒ ’‡”…‡–ƒ‰‡ ƒ‘—– ”‡†—…‡† ˆ”‘ –‘–ƒŽ ‹…‘‡ –ƒš

Rebate ’ƒ›ƒ„Ž‡Ǥ
Ȉ ƒš”‡„ƒ–‡‹•ƒŽŽ‘™‡†ƒ•ƒ”‡†—…–‹‘–‘–Š‡–‘–ƒŽ–ƒš’ƒ›ƒ„Ž‡

Š‡”‡ƒ”‡•‡˜‡”ƒŽ‹…‘‡•–Šƒ–†‘‘–ˆ‘”’ƒ”–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡•ǡ™Š‹…Šƒ”‡‡–ƒ‹Ž‡†—Ȁ•ͳͲ‘ˆ
–Š‡…–Ǥ‡‹‰‡š‡’–ǡ–Š‡•‡†‘‘–‡–‡”–Š‡…‘’—–ƒ–‹‘‘ˆ–ƒšƒ„Ž‡‹…‘‡•–Š‡”‡ˆ‘”‡Ǥ
Š‡”‡ ‹• ƒ ƒŒ‘” †‹ˆˆ‡”‡…‡ „‡–™‡‡ ‹…‘‡• —Ȁ• ͳͲ ƒ† –Š‡ †‡†—…–‹‘• —†‡” Šƒ’–‡”ǦǦǡ ƒŽ–Š‘—‰Š ƒ† ‹– ‹•
–Š‡”‡ˆ‘”‡‹’‡”ƒ–‹˜‡–‘‘–‡–Šƒ––Š‡‹…‘‡•—Ȁ•ͳͲ†‘‘–‡–‡”–Š‡…‘’—–ƒ–‹‘‘ˆ–ƒšƒ„Ž‡‹…‘‡ˆ‘”ƒ••‡••‡‡•
ƒ–ƒŽŽǡ–Š‡›ƒ”‡‡š‡’–Ǣ™Š‡”‡ƒ•Šƒ’–‡”ˆ‘”Ǧǡϐ‹”•–‹…‘‡•ƒ”‡ƒ††‡†ƒ†ˆ‘”’ƒ”–‘ˆ
”‘••‘–ƒŽ…‘‡ȋ
Ȍ
ƒ†‘Ž›–Š‡–Š‡•‡†‡†—…–‹‘•—†‡”–Š‡Šƒ’–‡”ƒ”‡ƒŽŽ‘™‡†Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 85

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

Agricultural Income [Section 10(1)]
‡…–‹‘ ͳͲȋͳȌ •–ƒ–‡• –Šƒ– ƒ‰”‹…—Ž–—”ƒŽ ‹…‘‡• ƒ”‡ ‘– ‹…Ž—†‡† ‹ –Š‡ –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ ƒ••‡••‡‡•Ǥ Š‡ –‡”
‰”‹…—Ž–—”ƒŽ…‘‡…ƒ„‡“—‹–‡™‹†‡‹•…‘’‡ƒ•—†‡”ǣ
Ȉ –…‘—Ž†–ƒ‡–Š‡ˆ‘”‘ˆ”‡–‘””‡˜‡—‡•†‡”‹˜‡†ˆ”‘ƒŽƒ†‹†‹ƒȋˆƒ‰”‹…—Ž–—”ƒŽŽƒ†‹••‹–—ƒ–‡†‹ƒ
ˆ‘”‡‹‰…‘—–”›ǡ–Š‡‡–‹”‡‹…‘‡™‘—Ž†„‡–ƒšƒ„Ž‡Ȍǡƒ†—•‡†ˆ‘”ƒ‰”‹…—Ž–—”ƒŽ’—”’‘•‡•
9 Š‡ƒ‘—–”‡…‡‹˜‡†‹‘‡›‘”‹‹†ǡ„›‘‡’‡”•‘ˆ”‘ƒ‘–Š‡”ˆ‘””‹‰Š––‘—•‡Žƒ†‹•–‡”‡†ƒ•
RentǤŠ‡”‡–…ƒ‡‹–Š‡”„‡”‡…‡‹˜‡†„›–Š‡‘™‡”‘ˆ–Š‡Žƒ†‘”„›–Š‡‘”‹‰‹ƒŽ–‡ƒ–ˆ”‘–Š‡•—„Ǧ–‡ƒ–Ǥ
–‹’Ž‹‡•–Šƒ–‘™‡”•Š‹’‘ˆŽƒ†‹•‘–‡…‡••ƒ”›ǤŠ—•ǡ–Š‡”‡–”‡…‡‹˜‡†„›–Š‡‘”‹‰‹ƒŽ–‡ƒ–ˆ”‘•—„Ǧ
–‡ƒ–™‘—Ž†ƒŽ•‘„‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡•—„Œ‡…––Š‡‘–Š‡”…‘†‹–‹‘•‡–‹‘‡†ƒ„‘˜‡Ǥ
Ȉ –…‘—Ž†–ƒ‡–Š‡ˆ‘”‘ˆ‹…‘‡–Š”‘—‰Šƒ‰”‹…—Ž–—”‡Ȁ…—Ž–‹˜ƒ–‹‘–‘”‡†‡”–Š‡’”‘†—…‡ϐ‹–ˆ‘”„‡‹‰–ƒ‡‹
–‘–Š‡ƒ”‡–ˆ‘”•ƒŽ‡
9 ‰”‹…—Ž–—”‡™‘—Ž†‹…Ž—†‡basic operations ™Š‹…Šƒ”‡ƒ„•‘Ž—–‡Ž›‡…‡••ƒ”›ˆ‘””ƒ‹•‹‰’”‘†—…‡ǡƒ†
subsequent operations ™Š‹…Šƒ”‡’‡”ˆ‘”‡†ƒˆ–‡”–Š‡’”‘†—…‡•’”‘—–•ˆ”‘–Š‡Žƒ†Ǥ
9 Š‡”‡ˆ‘”‡ǡƒ…–‹˜‹–‹‡•Ž‹‡–‹ŽŽ‹‰‘ˆ–Š‡Žƒ†ǡ•‘™‹‰•‡‡†•ǡƒ†„‘–Š–Š‡„ƒ•‹…ƒ†•—„•‡“—‡–‘’‡”ƒ–‹‘•
’‡”ˆ‘”‡†–‘‰‡–Š‡”‹…‘Œ—…–‹‘™‹–Š‡ƒ…Š‘–Š‡”™‘—Ž†„‡…‘•–”—‡†ƒ•–Š‡ƒ‰”‹…—Ž–—”ƒŽ’—”’‘•‡Ǥ
9 ‘”†‡”–‘”‡†‡”–Š‡’”‘†—…‡ǡϐ‹–ˆ‘”„‡‹‰–ƒ‡–‘ƒ”‡–ˆ‘”•ƒŽ‡ǡ–Š‡ƒ…–‹˜‹–‹‡•™‘—Ž†‹…Ž—†‡ƒŽŽ
ƒ…–‹˜‹–‹‡•ǡ Ž‹‡ …Ž‡ƒ‹‰ǡ †”›‹‰ǡ ™‹‘™‹‰ǡ …”—•Š‹‰ ‡–…Ǥ šƒ’Ž‡ǡ Ž‡–ǯ• ƒ••—‡ –Š‡ ’”‘…‡•• „‡‹‰
”‡ˆ‡””‡† –‘ ‹• ‘„–ƒ‹‹‰ ”‹…‡ ˆ”‘ ’ƒ††›ǡ –Š‡ ’”‘…‡•• ‘”†‹ƒ”‹Ž› ‡’Ž‘›‡† „› –Š‡ …—Ž–‹˜ƒ–‘” ™‘—Ž†
‹…Ž—†‡ǣ
Ȉ ‡‘˜‹‰Šƒ›ˆ”‘„ƒ•‹…‰”ƒ‹•
Ȉ ‡‘˜‹‰…Šƒˆˆˆ”‘–Š‡‰”ƒ‹•
Ȉ ‹Ž–‡”‹‰–Š‡‰”ƒ‹–‘”‡‘˜‡•–‘‡•
Ȉ ƒ…‹‰–Š‡”‹…‡‹‰—›„ƒ‰•
 Š‡”‡ˆ‘”‡ǡƒŽŽƒ…–‹˜‹–‹‡•ǡƒ—ƒŽ‘”‘–Š‡”™‹•‡ǡƒŽŽ–Š‡’”‘…‡••‡•™‘—Ž†„‡‹…Ž—†‡†‹ƒ†–Š‡”‡ˆ‘”‡…‘•–‹–—–‡
–Š‡ƒ…–‹˜‹–‹‡•†‡’Ž‘›‡†–‘”‡†‡”–Š‡’”‘†—…‡ϐ‹–ˆ‘”„‡‹‰–ƒ‡–‘–Š‡ƒ”‡–Ǥ
Ȉ –…‘—Ž†–ƒ‡–Š‡ˆ‘”‘ˆ•ƒŽ‡‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‹–•‡Žˆ
9 ‡”‡ǡ–Š‡‘•–‹’‘”–ƒ–’ƒ”––‘„‡—†‡”•–‘‘†‹•–Šƒ––Š‡’”‘†—…‡—•–„‡•‘Ž†‹‹–ǯ•”ƒ™ˆ‘”ǡƒ†
–Š‡–Šƒ–™‹ŽŽ…‘•–‹–—–‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡Ǥ‘™‡˜‡”ǡ‹ˆ–Š‡’”‘†—…‡‹•ˆ—”–Š‡”•—„Œ‡…–‡†–‘’”‘…‡••‡•
‘–Š‡”–Šƒ–Š‡’”‘…‡••‡•‘”†‹ƒ”‹Ž›‡’Ž‘›‡†–‘”‡†‡”–Š‡’”‘†—…‡ϐ‹–ˆ‘”–Š‡ƒ”‡–ǡ‡šƒ’Ž‡ǡˆ‘”
–‘„ƒ……‘ǡ…‘––‘ǡ–‡ƒǡ–Š‡•‡ƒ”‡•—„Œ‡…–‡†–‘ˆ—”–Š‡”ƒ—ˆƒ…–—”‹‰’”‘…‡••‡•„‡ˆ‘”‡„‡‹‰…‘‡”…‹ƒŽŽ›
•‘Ž†ǡƒ†–Š‡”‡ˆ‘”‡–Š‡‹…‘‡•‘ƒ”‹•‹‰ˆ”‘•—…Š•ƒŽ‡™‘—Ž†„‡–”‡ƒ–‡†ƒ•ƒ‹š‘ˆƒ‰”‹…—Ž–—”ƒŽƒ†
„—•‹‡••‹…‘‡Ǥ

CASE LAW

30.11.2011 Dy. CIT v. Best Roses Biotech (P) Ltd. ITAT Ahmadabad Bench
Facts of the Case: ••‡••‡‡ ƒ…“—‹”‡† Žƒ† ˆ”‘ ƒ‰”‹…—Ž–—”‹•– ‘ Ž‡ƒ•‡ ƒ† …‘•–”—…–‡† ƒ ‰”‡‡Š‘—•‡ ϐŽ‘™‡”
’”‘Œ‡…–‘•ƒ‹†Žƒ†Ǥ–•–ƒ”–‡†‰”‘™‹‰‘ˆ”‘•‡ϐŽ‘™‡”Ȁ’Žƒ–•‘„”‹†‰‡‘ˆ’Žƒ•–‹…–”ƒ›•‡”‡…–‡†™‹–ŠŠ‡Ž’‘ˆǤǤ
•–ƒ†ʹǤ͵ˆ–Ǥƒ„‘˜‡Žƒ†ǤŠ‡ƒ••‡••‡‡…Žƒ‹‡†–Š‡‹…‘‡ˆ”‘”‘•‡ϐŽ‘™‡”ƒ•‡š‡’–ǤŠ‡••‡••‹‰ˆϐ‹…‡”Š‡Ž†
–Šƒ––Š‡”‘•‡’Žƒ–•™‡”‡‘–’Žƒ–‡†‘‡ƒ”–ŠŽƒ†ƒ†‘„ƒ•‹•‘’‡”ƒ–‹‘™ƒ•…ƒ””‹‡†‘—–„›ƒ••‡••‡‡‘Žƒ†
Š‡…‡ǡ ‘– ‡Ž‹‰‹„Ž‡ ˆ‘” ‡š‡’–‹‘Ǥ ……‘”†‹‰ –‘ ƒ••‡••‡‡ǡ ˆ‘” ’Žƒ–ƒ–‹‘ ‘ˆ ”‘•‡• ƒ ˜‡”› ™‡ŽŽ –”‡ƒ–‡† •‘‹Ž ™ƒ•
”‡“—‹”‡†ǡƒ—”‡•™‡”‡‹š‡†‹•‘‹Žˆ‘”’”‡’ƒ”‹‰ƒ„ƒ•‡ˆ‘”‰”‘™‹‰”‘•‡’Žƒ–•–”ƒ›•™‡”‡ϐ‹Ž‡†™‹–Š‹š–—”‡
‘ˆ•‘‹Žǡ‹•‡…–‹…‹†‡•™‡”‡•’”‹Ž‡†‘’Žƒ–•–‘•ƒ˜‡’Žƒ–•ˆ”‘ƒ›†‹•‡ƒ•‡ǡ”‘‘–•–‘…•™‡”‡„”‘—‰Š–ˆ”‘
ƒ”‡–ƒ†’Žƒ–‡†‹‰”‡‡Š‘—•‡ǡ‘–Š‡”’Žƒ–™ƒ•‘–Š‡”™‹•‡”‡ƒ”‡†‘‡ƒ”–Šǡ•—„•‡“—‡–Ž›•ƒ’Ž‹‰•™‡”‡
 86 Lesson 3 Ȉ EP-TL

’Žƒ–‡†‘’Žƒ•–‹…–”ƒ›•™Š‹…Š™‡”‡‡’–ƒ–Š‡‹‰Š–‘ˆʹǦ͵ˆ–Ǥ’Žƒ…‡†‘ǤǤ•–ƒ†ǡ’—”’‘•‡‘ˆ‰”‘™‹‰”‘•‡’Žƒ–•
ƒ–ƒŠ‡‹‰Š–™ƒ•’”‹ƒ”‹Ž›–‘ƒ˜‘‹†’‡•–ƒ†–‘†‡˜‡Ž‘’‹ƒ…‘–”‘ŽŽ‡†ƒ–‘•’Š‡”‡ƒ†‰”‡‡Š‘—•‡™ƒ•—•‡†ˆ‘”
˜ƒ”‹‘—•„‡‡ϐ‹–•‘–Šƒ–•—Ž‹‰Š–ƒ†Š—‹†‹–›Ž‡˜‡Ž„‘–Š…‘—Ž†„‡ƒ‹–ƒ‹‡†Ǥ
Judgment:  ˆƒ…– ƒ••‡••‡‡ǯ• ƒ…–‹˜‹–› Šƒ• ƒŽ”‡ƒ†› „‡‡ ‡†‘”•‡† ƒ• ƒ ƒ‰”‹…—Ž–—”‡ ƒ…–‹˜‹–› „› •‡˜‡”ƒŽ ‘–Š‡”
…‘‡…–‡†ƒ—–Š‘”‹–‹‡•…‡”–‹ˆ›‹‰‹–ƒ•ƒƒ‰”‹…—Ž–—”ƒŽ‘’‡”ƒ–‹‘Ǥˆ–‡”ƒ‡Žƒ„‘”ƒ–‡†‹•…—••‹‘‘ˆ–Š‡ˆƒ…–•ƒ•™‡ŽŽ
ƒ•Žƒ™’”‘‘—…‡†„›•‡˜‡”ƒŽ…‘—”–•ǡƒ•ƒŽ•‘–Š‡†‡…‹•‹‘•‘™…‹–‡†ˆ”‘–Š‡•‹†‡‘ˆ–Š‡‡˜‡—‡ǡ‹–‹•ϐ‹ƒŽŽ›
Š‡Ž†–Šƒ–…‘•‹†‡”‹‰–Š‡ƒ†˜ƒ…‡‡–‘ˆ–‡…Š‘Ž‘‰›ƒ†–Š‡—•‡‘ˆ–Š‡ƒ†˜ƒ…‡†‡“—‹’‡–‹ƒ˜•ƒ”‹˜Ǥ
‡•–‘•‡•‹‘–‡…Š˜–Ǥ–†Ǥ…—Ž–‹˜ƒ–‹‘Ǣ…‘—’Ž‡†™‹–Š–Š‡…‘˜‡–‹‘ƒŽ…—Ž–‹˜ƒ–‹‘‡–Š‘†ǡ’—––‘‰‡–Š‡”ǡƒ†‡
–Š‡‘’‡”ƒ–‹‘…ƒ””‹‡†‘—–„›–Š‡ƒ••‡••‡‡™ƒ•ƒ‰”‹…—Ž–—”ƒŽ‘’‡”ƒ–‹‘‹ƒ–—”‡Ǥ‡•’‡…–ˆ—ŽŽ›’Žƒ…‹‰”‡Ž‹ƒ…‡‘
–Š‹• †‡…‹•‹‘ ƒ• ƒŽ•‘ –Š‡ ˆ‡™ †‡…‹•‹‘• …‹–‡† Š‡”‡‹ƒ„‘˜‡ǡ ™‡ ƒ”‡ ‘ˆ –Š‡ …‘•‹†‡”‡† ˜‹‡™ –Šƒ– –Š‡ ‹…‘‡ ‹
“—‡•–‹‘…ƒ‘–„‡‹…Ž—†‡†‹–‘–ƒŽ‹…‘‡„‡‹‰™‹–Š‹–Š‡ƒ„‹–•‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͲȋͳȌ‘ˆ–Š‡…–Ǥ
Š‡˜‹‡™–ƒ‡„›†ǤȋȌ‹•Š‡”‡„›ƒˆϐ‹”‡†ƒ†–Š‹•‰”‘—†‘ˆ‡˜‡—‡ǯ•ƒ’’‡ƒŽ‹•†‹•‹••‡†Ǥ

Whether income from nursery constitutes agricultural income?

‡•ǡƒ•’‡”Explanation 3 –‘•‡…–‹‘ʹȋͳȌǡ‹…‘‡†‡”‹˜‡†ˆ”‘•ƒ’Ž‹‰•‘”•‡‡†Ž‹‰•‰”‘™‹ƒ—”•‡”›™‘—Ž†„‡
†‡‡‡†–‘„‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ǡ™Š‡–Š‡”‘”‘––Š‡„ƒ•‹…‘’‡”ƒ–‹‘•™‡”‡…ƒ””‹‡†‘—–‘Žƒ†Ǥ
Rule 7 - Š‡”‡–Š‡‹…‘‡‹•’ƒ”–‹ƒŽŽ›ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ†’ƒ”–‹ƒŽŽ›„—•‹‡••‹…‘‡ǡthe market value ‘ˆƒ›
ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡•‘”ƒ‹•‡†„›–Š‡ƒ••‡••‡‡•ǡ™Š‹…ŠŠƒ•„‡‡ˆ—”–Š‡”—–‹Ž‹•‡†Ȁ’”‘…‡••‡†‹•—…Š„—•‹‡••™‹ŽŽ„‡
ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹•—…Š„—•‹‡••Ǥ
Determination of market value ǦŠ‡”‡ƒ”‡–™‘’‘••‹„‹Ž‹–‹‡•Š‡”‡ǣ
ȋ‹Ȍ Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‹•…ƒ’ƒ„Ž‡‘ˆ„‡‹‰•‘Ž†‹–Š‡ƒ”‡–‡‹–Š‡”‹‹–•”ƒ™•–ƒ‰‡‘”ƒˆ–‡”ƒ’’Ž‹…ƒ–‹‘‘ˆ
ƒ›‘”†‹ƒ”›’”‘…‡••–‘ƒ‡‹–ϐ‹––‘„‡–ƒ‡–‘–Š‡ƒ”‡–Ǥ•—…Šƒ…ƒ•‡ǡ–Š‡˜ƒŽ—‡…ƒŽ…—Žƒ–‡†ƒ––Š‡ƒ˜‡”ƒ‰‡
’”‹…‡ƒ–™Š‹…Š‹–Šƒ•„‡‡•‘•‘Ž††—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”™‹ŽŽ„‡–Š‡ƒ”‡–˜ƒŽ—‡Ǥ
ȋ‹‹Ȍ –‹•’‘••‹„Ž‡–Šƒ––Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‹•‘–…ƒ’ƒ„Ž‡‘ˆ„‡‹‰‘”†‹ƒ”‹Ž›•‘Ž†‹–Š‡ƒ”‡–‹‹–•”ƒ™ˆ‘”
‘”ƒˆ–‡”ƒ’’Ž‹…ƒ–‹‘‘ˆƒ›‘”†‹ƒ”›’”‘…‡••Ǥ•—…Š…ƒ•‡–Š‡ƒ”‡–˜ƒŽ—‡™‹ŽŽ„‡–Š‡–‘–ƒŽ‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ Š‡‡š’‡•‡•‘ˆ…—Ž–‹˜ƒ–‹‘Ǣ
Ȉ Š‡Žƒ†”‡˜‡—‡‘””‡–’ƒ‹†ˆ‘”–Š‡ƒ”‡ƒ‹™Š‹…Š‹–™ƒ•‰”‘™Ǣƒ†
Ȉ —…Šƒ‘—–ƒ•–Š‡••‡••‹‰ˆϐ‹…‡”ϐ‹†•Šƒ˜‹‰”‡‰ƒ”†–‘–Š‡…‹”…—•–ƒ…‡•‹‡ƒ…Š…ƒ•‡–‘”‡’”‡•‡–
ƒ–”‡ƒ•‘ƒ„Ž‡’”‘ϐ‹–Ǥ

Illustration 1:
—†ƒƒŽ‰”‘™••—‰ƒ”…ƒ‡ƒ†—•‡•–Š‡•ƒ‡ˆ‘”–Š‡’—”’‘•‡‘ˆƒ—ˆƒ…–—”‹‰•—‰ƒ”‹Š‹•ˆƒ…–‘”›ǤͶͲΨ‘ˆ
–Š‡•—‰ƒ”…ƒ‡’”‘†—…‡‹••‘Ž†ˆ‘”ͳͷǡͲͲǡͲͲͲƒ†–Š‡…‘•–‘ˆ…—Ž–‹˜ƒ–‹‘‘ˆ–Š‹•’ƒ”–‹•ͺǡͲͲǡͲͲͲǤ͸ͲΨ‘ˆ
–Š‡•—‰ƒ”…ƒ‡’”‘†—…‡‹•ˆ—”–Š‡”•—„Œ‡…–‡†–‘ƒ—ˆƒ…–—”‹‰•—‰ƒ”ƒ†–Š‡ƒ”‡–ƒŽ—‡ȋȌ‘ˆ–Š‡•ƒ‡™ƒ•
͵͵ǡͲͲǡͲͲͲƒ†–Š‡…‘•–‘ˆ…—Ž–‹˜ƒ–‹‘‘ˆ–Š‹•’ƒ”–™ƒ•ʹͳǡͲͲǡͲͲͲǤ
‘•–‹…—””‹‰͵ǡͲͲǡͲͲͲ‹–Š‡ƒ—ˆƒ…–—”‹‰’”‘…‡••ˆ‘”•—‰ƒ”ǡ–Šƒ––Š‡•—‰ƒ”…ƒ‡™ƒ••—„Œ‡…–‡†–‘ǡ–Š‡
•—‰ƒ”™ƒ••‘Ž†ˆ‘”ͶͲǡͲͲǡͲͲͲǤ
‘—ƒ”‡”‡“—‹”‡†–‘ƒ†˜‹•‡‘Š‹•‰”‹…—Ž–—”ƒŽƒ†—•‹‡••…‘‡Ǥ
Solution :

Particulars Figure in Lakhs Figure in Lakhs

Item Sugarcane Sugar
ƒŽ‡ ͶͺǤͲ ͶͲǤͲ
‘•–‘ˆ…—Ž–‹˜ƒ–‹‘ ʹͻǤͲ ͵͵ǤͲ
—”–Š‡”ˆ‰Ǥ ͲǤͲ ͵ǤͲ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 87

Agriculture Income 19.0

Business Income 4.0

Notes:
ƒȌ ͶͲΨ‘ˆ–Š‡•—‰ƒ”…ƒ‡’”‘†—…‡™ƒ••‘Ž†”ƒ™̷ͳͷǡͲͲǡͲͲͲƒ†͸ͲΨ‘ˆ–Š‡•—‰ƒ”…ƒ‡’”‘†—…‡™ƒ•
•—„Œ‡…–‡†–‘ˆ—”–Š‡”ƒ—ˆƒ…–—”‹‰ǡ™ƒ•͵͵ǡͲͲǡͲͲͲǤŠ‡”‡ˆ‘”‡ǡˆ‘”–Š‡’—”’‘•‡•‘ˆƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡ǡ–Š‡‡–‹”‡’”‘†—…‡™ƒ•†‹•’‘•‡†ƒ–ƒ…‘•‹†‡”ƒ–‹‘‘ˆͶͺǡͲͲǡͲͲͲ
„Ȍ Š‡…‘•–‘ˆͳͲͲΨ’”‘†—…‡‹•ͺͲͲǡͲͲͲƒ†ʹͳǡͲͲǡͲͲͲˆ‘”–Š‡ͶͲΨƒ†͸ͲΨ”‡•’‡…–‹˜‡Ž›ǡ™Š‹…Š‹•
ʹͻǡͲͲǡͲͲͲ
…Ȍ ‘”•—‰ƒ”ǡ–Š‡‘ˆ–Š‡͸ͲΨ’”‘†—…‡™‘—Ž†„‡–ƒ‡ƒ•–Š‡…‘•–Š‡…‡ǡƒ†–Š‡”‡ˆ‘”‡–Š‡…‘•–‘ˆ…—Ž–‹˜ƒ–‹‘
™‘—Ž†„‡͵͵ǡͲͲǡͲͲͲ

Income from Manufacture of Rubber [Rule 7A]

Š‹•”—Ž‡ƒ’’Ž‹‡•‘‹…‘‡ˆ”‘•ƒŽ‡‘ˆŽƒ–‡šǡ‘”…”‡’‡•†‡”‹˜‡†ˆ”‘Žƒ–‡šǡ…‘ƒ‰—Ž—‘„–ƒ‹‡†ˆ”‘”—„„‡”’Žƒ–•ǡ
‰”‘™ „› –Š‡ •‡ŽŽ‡” ‹ †‹ƒǤ  •—…Š …ƒ•‡•ǡ ͵ͷΨ ‘ˆ ’”‘ϐ‹–• ‘ •ƒŽ‡• ‹• –ƒšƒ„Ž‡ ƒ• „—•‹‡•• ‹…‘‡ ƒ† ͸ͷΨ ƒ•
ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ǡ™Š‹…Š•–ƒ†•‡š‡’–Ǥ

Illustration 2:
‹Š‹Žƒ—ˆƒ…–—”‡•Žƒ–‡šˆ”‘”—„„‡”’Žƒ–•‰”‘™„›Š‹‹†‹ƒǤŠ‡•‡ƒ”‡•—„•‡“—‡–Ž›•‘Ž†‹–Š‡ƒ”‡–
ƒ–ͷͲǡͲͲǡͲͲͲǤŠ‡…‘•–•‹…—””‡†ƒ”‡ƒ•—†‡”ǣ
Ȉ ƒ—ˆƒ…–—”‹‰ƒ–‡šǣͳʹǡͲͲǡͲͲͲ
Ȉ
”‘™‹‰—„„‡”Žƒ–•ǣͳͺǡͲͲǡͲͲͲ
Solution:
Š‡–”‡ƒ–‡–‹•‡š’Žƒ‹‡†ƒ•—†‡”ǣ

Particulars INR
‘–ƒŽ…‘‡ ͷͲǡͲͲǡͲͲͲ
‘–ƒŽ‘•–• ͵ͲǡͲͲǡͲͲͲ
”‘ϐ‹–• ʹͲǡͲͲǡͲͲͲ
—•‹‡••…‘‡ ͹ǡͲͲǡͲͲͲ
‰”‹…—Ž–—”ƒŽ…‘‡ ͳ͵ǡͲͲǡͲͲͲ
Noteǣ–Š‡„—•‹‡••‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dz‹•
–ƒ‡̷͵ͷΨ‘ˆ–Š‡’”‘ϐ‹–•ƒ†–Š‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹•–ƒ‡̷͸ͷΨǡ™Š‹…Š‹••—„•‡“—‡–Ž›‡š‡’–ˆ”‘–ƒšǤ

Illustration 3:
”Ǥƒ—ˆƒ…–—”‡•Žƒ–‡šˆ”‘–Š‡”—„„‡”’Žƒ–•‰”‘™„›Š‹‹†‹ƒǤŠ‡•‡ƒ”‡–Š‡•‘Ž†‹–Š‡ƒ”‡–ˆ‘”•Ǥ
ͷͲŽƒ…•ǤŠ‡…‘•–‘ˆ‰”‘™‹‰”—„„‡”’Žƒ–•‹••ǤʹͲŽƒ…•ƒ†–Šƒ–‘ˆƒ—ˆƒ…–—”‹‰Žƒ–‡š‹••ǤͳͲŽƒ…•Ǥ‘’—–‡
Š‹•–‘–ƒŽ‹…‘‡Ǥ
Solution:
Š‡–‘–ƒŽ‹…‘‡‘ˆ”Ǥ…‘’”‹•‡•‘ˆƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ†„—•‹‡••‹…‘‡Ǥ
‘–ƒŽ’”‘ϐ‹–•ˆ”‘–Š‡•ƒŽ‡‘ˆŽƒ–‡šα•ǤͷͲŽƒ…•Ȃ•ǤʹͲŽƒ…•Ȃ•ǤͳͲŽƒ…•α•ǤʹͲŽƒ…•Ǥ
‰”‹…—Ž–—”ƒŽ‹…‘‡α͸ͷΨ‘ˆ•ǤʹͲŽƒ…α•Ǥͳ͵Žƒ…•
—•‹‡••‹…‘‡α͵ͷΨ‘ˆ•ǤʹͲŽƒ…•α•Ǥ͹Žƒ…•
 88 Lesson 3 Ȉ EP-TL

Income from the Manufacture of Coffee [Rule 7B]

Š‹•”—Ž‡ƒ’’Ž‹‡•‘‹…‘‡ˆ”‘•ƒŽ‡‘ˆ…‘ˆˆ‡‡‰”‘™Ƭ…—”‡†„›–Š‡•‡ŽŽ‡”‹†‹ƒǤ•—…Š…ƒ•‡•ǡʹͷΨ‘ˆ’”‘ϐ‹–•‘
•ƒŽ‡•‹•–ƒšƒ„Ž‡ƒ•„—•‹‡••‹…‘‡ƒ†͹ͷΨƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ǡ™Š‹…Š•–ƒ†•‡š‡’–Ǥ
‘™‡˜‡”ǡ‹…ƒ•‡‘ˆ‹…‘‡ˆ”‘•ƒŽ‡‘ˆ…‘ˆˆ‡‡ǡ‰”‘™ǡ…—”‡†ǡ”‘ƒ•–‡†ƒ†‰”‘—†‡†„›–Š‡•‡ŽŽ‡”‹†‹ƒǡ™‹–ŠȀ
™‹–Š‘—–‹š‹‰ϐŽƒ˜‘—”‡†‹‰”‡†‹‡–•ǡͶͲΨ‘ˆ–Š‡‹…‘‡™‘—Ž†„‡–ƒ‡ƒ•–ƒšƒ„Ž‡ƒ•„—•‹‡••‹…‘‡ƒ†͸ͲΨƒ•
ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ǡ™Š‹…Š•–ƒ†•‡š‡’–Ǥ

CASE LAW
Whether claim of assessee of exemption under section 10(1) on proceeds from sale of coffee subjected to
only pulping and drying was accepted for several years and there were hundreds of coffee growers whose
income were also exempted, re-opening notice issued only against assessee during relevant assessment
›‡ƒ”™ƒ•—Œ—•–‹ϔ‹‡†ȏ••‡••‡–›‡ƒ”͸ͶͶͿǦͷͶȐȏˆƒ˜‘—”‘ˆƒ••‡••‡Ȑ
Karti P. Chidambaram ǤAsstt. CIT [2017] (mad.)
Š‡ƒ••‡••‡‡ǡ‘™‡”‘ˆ…‘ˆˆ‡‡‡•–ƒ–‡•ǡ™ƒ•‡‰ƒ‰‡†ǡ‹‰”‘™‹‰…‘ˆˆ‡‡ƒ†ƒˆ–‡”’—Ž’‹‰ƒ††”›‹‰ǡ•‡ŽŽ•…‘ˆˆ‡‡
ƒ•”ƒ™…‘ˆˆ‡‡Ǥ ‘”•‡˜‡”ƒŽƒ••‡••‡–›‡ƒ”•ǡ–Š‡ƒ••‡••‡‡Šƒ†„‡‡‰”ƒ–‡†‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͳȌ‘
‹…‘‡ ˆ”‘ •ƒŽ‡   ‘ˆ ”ƒ™ …‘ˆˆ‡‡Ǥ —”‹‰ ”‡Ž‡˜ƒ– ƒ••‡••‡– ›‡ƒ”ǡ ”‡‘’‡‹‰ ‘–‹…‡ ™ƒ• ‹••—‡† ƒ‰ƒ‹•– –Š‡
ƒ••‡••‡‘‰”‘—†–Šƒ––Š‡ƒ••‡••‡‡•‘Ž†…—”‡†…‘ˆˆ‡‡ƒ†‘–”ƒ™…‘ˆˆ‡‡ƒ†Š‡…‡ʹͷ’‡”…‡–‘ˆ–‘–ƒŽ”‡…‡‹’–•
ˆ”‘ •ƒŽ‡ ‘ˆ …‘ˆˆ‡‡ ™ƒ• ‡Ž‹‰‹„Ž‡ –‘ –ƒšǤ —„•‡“—‡–Ž›ǡ ƒ ”‡ƒ••‡••‡– ‘”†‡” ™ƒ• ’ƒ••‡† ƒ‹‰ ƒ††‹–‹‘• –‘
‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ
‡Ž†–Šƒ–•‹…‡”‡Ǧƒ••‡••‡–‘”†‡”™ƒ•’ƒ••‡†™‹–Š‘—–†‹•’‘•‹‰‘ˆ–Š‡ƒ••‡••‡‡ǯ•‘„Œ‡…–‹‘•–‘”‡Ǧ‘’‡‹‰‘ˆ
ƒ••‡••‡–ƒ†™‹–Š‘—–’ƒ••‹‰ƒ•’‡ƒ‹‰‘”†‡”ǡ•ƒ‡™ƒ•—Œ—•–‹ϐ‹‡†Ǥ —”–Š‡”ǡ™Š‡”‡…Žƒ‹‘ˆ–Š‡ƒ••‡••‡‡‘ˆ
‡š‡’–‹‘‘ˆ‹…‘‡—†‡”•‡…–‹‘ͳͲȋͳȌ‘’”‘…‡‡†•ˆ”‘•ƒŽ‡‘ˆ…‘ˆˆ‡‡•—„Œ‡…–‡†–‘‘Ž›’—Ž’‹‰ƒ††”›‹‰
™ƒ•ƒ……‡’–‡†ˆ‘”•‡˜‡”ƒŽ›‡ƒ”•ƒ†–Š‡”‡™‡”‡Š—†”‡†•‘ˆ…‘ˆˆ‡‡‰”‘™‡”•™Š‘•‡‹…‘‡™‡”‡ƒŽ•‘‡š‡’–‡†ǡ
”‡Ǧ‘’‡‹‰‘–‹…‡‹••—‡†‘Ž›ƒ‰ƒ‹•––Š‡ƒ••‡••‡‡†—”‹‰”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”™ƒ•—Œ—•–‹ϐ‹‡†Ǥ

Income from Growing and Manufacturing of Tea [Rule 8]

Š‹•”—Ž‡ƒ’’Ž‹‡•‘‹…‘‡ǡ™Š‡”‡–Š‡ƒ••‡••‡‡•–Š‡•‡Ž˜‡•‰”‘™–‡ƒŽ‡ƒ˜‡•ƒ†ƒ—ˆƒ…–—”‡–‡ƒ‹†‹ƒǤ
•—…Š…ƒ•‡•ǡͶͲΨ‘ˆ’”‘ˆ‹–•‘•ƒŽ‡•‹•–ƒšƒ„Ž‡ƒ•„—•‹‡••‹…‘‡ƒ†͸ͲΨƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ǡ™Š‹…Š•–ƒ†•
‡š‡’–Ǥ

Nature of Income Income tax Rule Amount of Amount of non-

applicable agricultural income agricultural income

…‘‡ ˆ”‘‰”‘™‹‰ƒ† —Ž‡͹ ͸ͷΨ‘ˆ•—…Š‹…‘‡ ͵ͷΨ‘ˆ•—…Š‹…‘‡

ƒ—ˆƒ…–—”‹‰‘ˆ”—„„‡”
…‘‡ †‡”‹˜‡† ˆ”‘ •ƒŽ‡ ‘ˆ …‘ˆˆ‡‡ —Ž‡͹ȋͳȌ ͹ͷΨ‘ˆ•—…Š‹…‘‡ ʹͷΨ‘ˆ•—…Š‹…‘‡
‰”‘™ƒ†ƒ—ˆƒ…–—”‡†‹†‹ƒ
…‘‡ †‡”‹˜‡† ˆ”‘ •ƒŽ‡ ‘ˆ …‘ˆˆ‡‡ —Ž‡͹ȋͳȌ ͸ͲΨ‘ˆ•—…Š‹…‘‡ ͶͲΨ‘ˆ•—…Š‹…‘‡
‰”‘™ǡ …—”‡†ǡ ”‘ƒ•–‡† ƒ† ‰”‘—†‡† ‹•
†‹ƒ
…‘‡ˆ”‘•ƒŽ‡‘ˆ–‡ƒƒ—ˆƒ…–—”‡† ‘” —Ž‡ͺ ͸ͲΨ‘ˆ•—…Š‹…‘‡ ͶͲΨ‘ˆ•—…Š‹…‘‡
‰”‘™‹†‹ƒ
Income from Farm Building:
…‘‡ƒ”‹•‹‰ˆ”‘–Š‡—•‡‘ˆˆƒ”„—‹Ž†‹‰ˆ‘”ƒ›’—”’‘•‡ȋ‹…Ž—†‹‰Ž‡––‹‰ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡‘”ˆ‘”–Š‡
’—”’‘•‡‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘Ȍ‘–Š‡”–Šƒƒ‰”‹…—Ž–—”‡™‘—Ž†‘–„‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 89

—”–Š‡”ǡ–Š‡‹…‘‡ˆ”‘ˆƒ”„—‹Ž†‹‰™‘—Ž†„‡ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‘Ž›‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ Š‡„—‹Ž†‹‰•Š‘—Ž†„‡‘‘”‹–Š‡‹‡†‹ƒ–‡˜‹…‹‹–›‘ˆ–Š‡Žƒ†Ǣƒ†
ȋ„Ȍ Š‡”‡…‡‹˜‡”‘ˆ–Š‡”‡–‘””‡˜‡—‡‘”–Š‡…—Ž–‹˜ƒ–‘”‘”–Š‡”‡…‡‹˜‡”‘ˆ”‡–‹‹†•Š‘—Ž†ǡ„›”‡ƒ•‘‘ˆŠ‹•
…‘‡…–‹‘™‹–Š•—…ŠŽƒ†”‡“—‹”‡‹–ƒ•ƒ†™‡ŽŽ‹‰Š‘—•‡‘”ƒ•ƒ•–‘”‡Š‘—•‡Ǥ

ƒ††‹–‹‘–‘–Š‡ƒ„‘˜‡…‘†‹–‹‘•ƒ›‘‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰–™‘…‘†‹–‹‘••Š‘—Ž†ƒŽ•‘„‡•ƒ–‹•ϐ‹‡†ǣ
ȋ‹Ȍ Š‡Žƒ†•Š‘—Ž†‡‹–Š‡”„‡ƒ••‡••‡†–‘Žƒ†”‡˜‡—‡‹†‹ƒ‘”„‡•—„Œ‡…––‘ƒŽ‘…ƒŽ”ƒ–‡ƒ••‡••‡†ƒ†…‘ŽŽ‡…–‡†
„›–Š‡‘ˆϐ‹…‡”•‘ˆ–Š‡
‘˜‡”‡–ƒ••—…Š‘”Ǣ
ȋ‹Ȍ Š‡”‡–Š‡Žƒ†‹•‘–•‘ƒ••‡••‡†–‘Žƒ†”‡˜‡—‡‹†‹ƒ‘”‹•‘–•—„Œ‡…––‘Ž‘…ƒŽ”ƒ–‡ǣǦ
ƒǤ – •Š‘—Ž† ‘– „‡ •‹–—ƒ–‡† ‹ ƒ› ƒ”‡ƒ ƒ• …‘’”‹•‡† ™‹–Š‹ –Š‡ Œ—”‹•†‹…–‹‘ ‘ˆ ƒ —‹…‹’ƒŽ‹–› ‘” ƒ
…ƒ–‘‡–„‘ƒ”†ƒ†™Š‹…ŠŠƒ•ƒ’‘’—Žƒ–‹‘‘–Ž‡••–ŠƒͳͲǡͲͲͲ‘”
„Ǥ –•Š‘—Ž†‘–„‡•‹–—ƒ–‡†‹ƒ›ƒ”‡ƒ™‹–Š‹•—…Š†‹•–ƒ…‡ǡ‡ƒ•—”‡†ƒ‡”‹ƒŽŽ›ǡ‹”‡Žƒ–‹‘–‘–Š‡”ƒ‰‡‘ˆ
’‘’—Žƒ–‹‘ƒ••Š‘™Š‡”‡—†‡”Ȃ

Sl. Shortest aerial distance from the local Population according to the last preceding census of
No. limits of a municipality or cantonment ™Š‹…Š –Š‡ ”‡Ž‡˜ƒ– ϐ‹‰—”‡• Šƒ˜‡ „‡‡ ’—„Ž‹•Š‡† „‡ˆ‘”‡
board referred to in item a. –Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
ȋ‹Ȍ ζʹ‹Ž‘‡–‡”• εͳͲǡͲͲͲζͳǡͲͲǡͲͲͲ

ȋ‹‹Ȍ ζ͸‹Ž‘‡–‡”• εͳǡͲͲǡͲͲͲζͳͲǡͲͲǡͲͲͲ

ȋ‹‹‹Ȍ ζͺ‹Ž‘‡–‡”• εͳͲǡͲͲǡͲͲͲ

Whether income arising from transfer of agricultural land situated in urban area be agricultural
income?
‘ǡ ƒ• ’‡” š’Žƒƒ–‹‘ ͳ –‘ •‡…–‹‘ ʹȋͳȌǡ –Š‡ …ƒ’‹–ƒŽ ‰ƒ‹• ƒ”‹•‹‰ ˆ”‘ –Š‡ –”ƒ•ˆ‡” ‘ˆ —”„ƒ ƒ‰”‹…—Ž–—”ƒŽ Žƒ†
™‘—Ž†‘–„‡–”‡ƒ–‡†ƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡—†‡”•‡…–‹‘ͳͲ„—–™‹ŽŽ„‡–ƒšƒ„Ž‡—†‡”•‡…–‹‘ͶͷǤ
Where there is a combination of agricultural and non-agricultural income
Š‹•‹•ƒ’’Ž‹…ƒ„Ž‡–‘†‹˜‹†—ƒŽ•ǡ ǡǡǡƒ†ƒ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ’‡”•‘Ǥ
™‘ …‘†‹–‹‘• ™Š‹…Š ‡‡† –‘ „‡ •ƒ–‹•ϐ‹‡† ˆ‘” ’ƒ”–‹ƒŽ ‹–‡‰”ƒ–‹‘ ‘ˆ ƒ‰”‹…—Ž–—”ƒŽ ‹…‘‡ ™‹–Š ‘Ǧƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡ƒ”‡ǣ
ͳȌ Š‡‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡—•–„‡εͷͲͲͲ’ǤƒǤǢƒ†
ʹȌ Š‡‘Ǧƒ‰”‹…—Ž–—”ƒŽ‹…‘‡—•–„‡ε–Š‡ƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšȋ™Š‹…Š‹•ʹͷͲǡͲͲͲˆ‘”
ƒŽŽ‹†‹˜‹†—ƒŽ•Ȁ ǯ•Ǣ͵ͲͲǡͲͲͲˆ‘”•‡‹‘”…‹–‹œ‡•ƒ†ͷͲͲǡͲͲͲˆ‘”˜‡”›•‡‹‘”…‹–‹œ‡•Ȍ

Š‡ƒ‡”‘ˆ…‘’—–ƒ–‹‘‘ˆ…‘‡‹•—…Š…ƒ•‡•™‘—Ž†„‡ƒ•—†‡”ǣ
‘’—–‡–Š‡–ƒš
Ž‹ƒ„‹Ž‹–›‘‘Ǧ
ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡
Ƭ‡–ƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡Ǥ…‘„‹‡†
ȋȌ
Š‹••—™‘—Ž†„‡
‘’—–‡–Š‡–ƒš
”‡†—…‡†„›”‡Ž‹‡ˆ—Ȁ•
Ž‹ƒ„‹Ž‹–›‘‡–
ͺ͹‹ˆƒ›ƒ†
ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡
‡”ˆ‘”ȋȌǦȋȌ ƒ†Œ—•–‡–‘ˆ
ƒ†ƒš‹—
•—”…Šƒ”‰‡‹ˆƒ›Ǥ
ƒ’’”‘’”‹ƒ–‡
ƒ†˜ƒ…‡–ƒšǡ‡–…Ǥ
‡š‡’–‹‘Ž‹‹–ȋȌ
ƒ†ϐ‹ƒŽŽ›…‡••™‘—Ž†
„‡ƒ††‡†
 90 Lesson 3 Ȉ EP-TL

For Example:
…‘‡‘ˆ”Ǥˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹ‹•ƒ•ˆ‘ŽŽ‘™•ǣ‘’—–‡ƒš‹ƒ„‹Ž‹–›ˆ‘”–Š‡••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ

Particulars INR

…‘‡ˆ”‘•ƒŽƒ”›ȋ…‘’—–‡†Ȍ ʹǡͷͲǡͲͲͲ
…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ȋ…‘’—–‡†Ȍ ͳǡʹͷǡͲͲͲ

‡–‰”‹…—Ž–—”ƒŽ…‘‡ ͳǡͲͲǡͲͲͲ

‘–ƒŽȋȌ Ͷǡ͹ͷǡͲͲͲ
ƒš‹ƒ„‹Ž‹–› ͳͳǡʹͷͲ
‘–ƒŽȋȌ ͵ǡͷͲǡͲͲͲ
ƒš‹ƒ„‹Ž‹–› ͷǡͲͲͲ
ȋȌǦȋȌ ͸ǡʹͷͲ
‡••ǣ‡„ƒ–‡ͺ͹ȏͳʹͷͲͲ‘”–ƒš’ƒ›ƒ„Ž‡‹Ǥ‡Ǥ͸ǡʹͷͲ™Š‹…Š‡˜‡”‹•Ž‘™‡”Ȑ ͸ǡʹͷͲ
‘–ƒŽ–ƒš’ƒ›ƒ„Ž‡ ‹Ž

Note:
ͳȌ Š‡ȋȌ™‘—Ž†„‡–Š‡…‘„‹‡†‹…‘‡ƒ†–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‹•…‘’—–‡†’‡”–Š‡…—””‡–•Žƒ„•ƒ†”ƒ–‡•
ʹȌ Š‡ȋȌ™‘—Ž†„‡–Š‡‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ•‹…”‡ƒ•‡†„›–Š‡‹‹—‡š‡’–‹‘ƒ‘—–ƒ†–Š‡–ƒš
Ž‹ƒ„‹Ž‹–›‹•…‘’—–‡†’‡”–Š‡…—””‡–•Žƒ„•ƒ†”ƒ–‡•
͵Ȍ Š‡ȋȌǦȋȌ™‘—Ž†„‡–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘™Š‹…Š”‡„ƒ–‡ͺ͹‹•ƒŽŽ‘™‡†–‘†‡–‡”‹‡–Š‡ϐ‹ƒŽ–‘–ƒŽ–ƒš‹ƒ„‹Ž‹–›Ǥ
ͶȌ –‹•ƒ••—‡†–Šƒ––Š‡ƒ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ

Amount received by a member of the HUF from the income of the HUF [Section 10(2)]
•’‡”•‡…–‹‘ͳͲȋʹȌǡƒ‘—–”‡…‡‹˜‡†‘—–‘ˆˆƒ‹Ž›‹…‘‡ǡ‘”‹…ƒ•‡‘ˆ‹’ƒ”–‹„Ž‡‡•–ƒ–‡ǡƒ‘—–”‡…‡‹˜‡†‘—–‘ˆ
‹…‘‡‘ˆˆƒ‹Ž›‡•–ƒ–‡„›ƒ›‡„‡”‘ˆ•—…Š ‹•‡š‡’–ˆ”‘–ƒšǤŠ‹•‹•ƒŽŽ‘™ƒ„Ž‡‘Ž›™Š‡–Š‡’ƒ›‡–•ƒ”‡
ƒ†‡„›–Š‡ –‘‹–•‡„‡”•ǡ‘—–‘ˆ–Š‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›‘”‘—–‘ˆ–Š‡‹’ƒ”–‹„Ž‡‡•–ƒ–‡„‡Ž‘‰‹‰–‘–Š‡ˆƒ‹Ž›Ǥ

Illustration 4:
”Ǥǡƒ‡„‡”‘ˆƒ ǡ”‡…‡‹˜‡†•ǤͷǡͲͲͲƒ•Š‹••Šƒ”‡ˆ”‘–Š‡‹…‘‡‘ˆ–Š‡ Ǥ••—…Š‹…‘‡‹…Ž—†‹„Ž‡
‹Š‹•…Šƒ”‰‡ƒ„Ž‡‹…‘‡ǫ
Solution:
‘Ǥ—…Š‹…‘‡‹•‘–‹…Ž—†‹„Ž‡‹”Ǥǯ•…Šƒ”‰‡ƒ„Ž‡‹…‘‡•‹…‡•‡…–‹‘ͳͲȋʹȌ‡š‡’–•ƒ›•—”‡…‡‹˜‡†„›
ƒ‹†‹˜‹†—ƒŽƒ•ƒ‡„‡”‘ˆƒ ™Š‡”‡•—…Š•—Šƒ•„‡‡’ƒ‹†‘—–‘ˆ–Š‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›Ǥ

Šƒ”‡‘ˆ’”‘ϐ‹–”‡…‡‹˜‡†„›ƒ’ƒ”–‡”ˆ”‘–Š‡ ‹”ȏ‡…–‹‘ͳͲȋʹȌȐ
• ’‡” •‡…–‹‘ ͳͲȋʹȌǡ •Šƒ”‡ ‘ˆ ’”‘ϐ‹– ”‡…‡‹˜‡† „› ƒ ’ƒ”–‡” ˆ”‘ ƒ ϐ‹” ‹• ‡š‡’– ˆ”‘ –ƒš ‹ –Š‡ Šƒ†• ‘ˆ –Š‡
’ƒ”–‡”Ǥ —”–Š‡”ǡ•Šƒ”‡‘ˆ’”‘ϐ‹–”‡…‡‹˜‡†„›ƒ’ƒ”–‡”‘ˆˆ”‘–Š‡™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš‹–Š‡Šƒ†•‘ˆ
•—…Š ’ƒ”–‡”Ǥ Š‹• ‡š‡’–‹‘ ‹• Ž‹‹–‡† ‘Ž› –‘ •Šƒ”‡ ‘ˆ ’”‘ϐ‹– ƒ† †‘‡• ‘– ƒ’’Ž› –‘ ‹–‡”‡•– ‘ …ƒ’‹–ƒŽ ƒ†
”‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›–Š‡’ƒ”–‡”ˆ”‘–Š‡ϐ‹”ȀǤ
Interest to Non-Residents [Section 10(4)]
ȋƒȌ • ’‡” •‡…–‹‘ ͳͲȋͶȌȋ‹Ȍǡ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ‘Ǧ”‡•‹†‡–Ǣ ƒ› ‹…‘‡ „› ™ƒ› ‘ˆ ‹–‡”‡•– ‘ …‡”–ƒ‹ ‘–‹ϐ‹‡†
•‡…—”‹–‹‡•‘”„‘†•ȋ‹…Ž—†‹‰‹…‘‡„›™ƒ›‘ˆ’”‡‹—‘–Š‡”‡†‡’–‹‘‘ˆ•—…Š„‘†•Ȍ‹•‡š‡’–ˆ”‘–ƒšǤ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 91

ȋ„Ȍ •’‡”•‡…–‹‘ͳͲȋͶȌȋ‹‹Ȍǡ
ȋ‹Ȍ ‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ
ȋ‹‹Ȍ ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘‘‡›•–ƒ†‹‰–‘Š‹•…”‡†‹–‹ƒ‘Ǧ‡•‹†‡–ȋš–‡”ƒŽȌ……‘—–‹
ƒ›„ƒ‹†‹ƒ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ ‘”‡‹‰š…Šƒ‰‡ƒƒ‰‡‡–…–ǡͳͻͻͻǡƒ†–Š‡”—Ž‡•ƒ†‡
–Š‡”‡—†‡”‹•‡š‡’–ˆ”‘–ƒšǤ
 š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͶȌȋ‹‹Ȍ‹•ƒ˜ƒ‹Žƒ„Ž‡‘Ž›‹ˆ•—…Š‹†‹˜‹†—ƒŽ‹•ƒ’‡”•‘”‡•‹†‡–‘—–•‹†‡†‹ƒ
ƒ•†‡ϐ‹‡†‹…Žƒ—•‡ȋ™Ȍ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡ ‘”‡‹‰š…Šƒ‰‡ƒƒ‰‡‡–…–ǡͳͻͻͻ‘”‹•ƒ’‡”•‘™Š‘
Šƒ•„‡‡’‡”‹––‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ–‘ƒ‹–ƒ‹–Š‡ƒˆ‘”‡•ƒ‹†……‘—–Ǥ

–‡”‡•–‘‘–‹ϐ‹‡†•ƒ˜‹‰•…‡”–‹ϐ‹…ƒ–‡•ȏ‡…–‹‘ͳͲȋͶȌȐ
•’‡”•‡…–‹‘ͳͲȋͶȌǡ‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ„‡‹‰ƒ…‹–‹œ‡‘ˆ†‹ƒ‘”ƒ’‡”•‘‘ˆ†‹ƒ‘”‹‰‹ǡ™Š‘‹•ƒ‘Ǧ
”‡•‹†‡–ǡƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘‘–‹ϐ‹‡†•ƒ˜‹‰•…‡”–‹ϐ‹…ƒ–‡••—„•…”‹„‡†‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡Ȍ
‹••—‡†„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ —‡ǡʹͲͲʹ„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹•‡š‡’–ˆ”‘–ƒšǤ
Leave travel concession [Section 10(5)]
‡’Ž‘›‡‡…ƒ…Žƒ‹‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͷȌ‹”‡•’‡…–‘ˆ‡ƒ˜‡”ƒ˜‡Ž‘…‡••‹‘Ǥš‡’–‹‘—†‡”
•‡…–‹‘ͳͲȋͷȌ‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ‡’Ž‘›‡‡•ȋ‹Ǥ‡Ǥǡ†‹ƒƒ•™‡ŽŽƒ•ˆ‘”‡‹‰…‹–‹œ‡•ȌǤš‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–
‘ˆ˜ƒŽ—‡‘ˆƒ›–”ƒ˜‡Ž…‘…‡••‹‘‘”ƒ••‹•–ƒ…‡”‡…‡‹˜‡†‘”†—‡–‘–Š‡‡’Ž‘›‡‡ˆ”‘Š‹•‡’Ž‘›‡”ȋ‹…Ž—†‹‰ˆ‘”‡”
‡’Ž‘›‡”Ȍˆ‘”Š‹•‡Žˆƒ†Š‹•ˆƒ‹Ž›‡„‡”•‹…‘‡…–‹‘™‹–ŠŠ‹•’”‘…‡‡†‹‰‘Ž‡ƒ˜‡–‘ƒ›’Žƒ…‡‹†‹ƒǤ
–Š‡”’”‘˜‹•‹‘•–‘„‡‡’–‹‹†‹–Š‹•”‡‰ƒ”†ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

Where journey is performed by air Where journey is performed by rail

‘—–‘ˆ‡š‡’–‹‘™‹ŽŽ„‡Ž‘™‡”‘ˆƒ‘—– ‘—–‘ˆ‡š‡’–‹‘™‹ŽŽ„‡Ž‘™‡”‘ˆƒ‘—–
‘ˆ‡…‘‘›…Žƒ••ƒ‹”ˆƒ”‡‘ˆ–Š‡ƒ–‹‘ƒŽƒ””‹‡” ‘ˆ ƒ‹”Ǧ…‘†‹–‹‘‡† ϐ‹”•–Ǧ…Žƒ•• ”ƒ‹Ž ˆƒ”‡ „› –Š‡
„›–Š‡•Š‘”–‡•–”‘—–‡‘”ƒ…–—ƒŽƒ‘—–•’‡–Ǥ •Š‘”–‡•–”‘—–‡‘”ƒ…–—ƒŽƒ‘—–•’‡–Ǥ

Š‡•ƒ‡”—Ž‡™‹ŽŽƒ’’Ž›™Š‡”‡Œ‘—”‡›‹•’‡”ˆ‘”‡†„›ƒ›‘–Š‡”‘†‡ƒ†–Š‡’Žƒ…‡‘ˆ‘”‹‰‹‘ˆŒ‘—”‡›ƒ†
†‡•–‹ƒ–‹‘ƒ”‡…‘‡…–‡†„›”ƒ‹ŽǤ

Where the place of origin and destination are not connected by rail and journey is performed
by any mode of transport other than by air. The exemption will be as follows:
 92 Lesson 3 Ȉ EP-TL

Blockǣš‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”ʹŒ‘—”‡›•‹ƒ„Ž‘…‘ˆͶ›‡ƒ”•ǤŠ‡„Ž‘…ƒ’’Ž‹…ƒ„Ž‡ˆ‘”…—””‡–’‡”‹‘†‹•…ƒŽ‡†ƒ”
›‡ƒ”ʹͲͳͺǦʹͳǤŠ‡’”‡˜‹‘—•„Ž‘…™ƒ•‘ˆ…ƒŽ‡†ƒ”›‡ƒ”ʹͲͳͶǦʹͲͳ͹Ǥ
Carry overǣˆƒ‡’Ž‘›‡‡Šƒ•‘–ƒ˜ƒ‹Ž‡†‘ˆ–”ƒ˜‡Ž…‘…‡••‹‘‘”ƒ••‹•–ƒ…‡‹”‡•’‡…–‘ˆ‘‡‘”–™‘’‡”‹––‡†
Œ‘—”‡›•‹ƒ’ƒ”–‹…—Žƒ” „Ž‘…‘ˆͶ›‡ƒ”•ǡ–Š‡Š‡‹•‡–‹–Ž‡† –‘…ƒ””›‘˜‡”‘‡Œ‘—”‡› –‘–Š‡‡š– „Ž‘…Ǥ –Š‹•
•‹–—ƒ–‹‘ǡ‡š‡’–‹‘™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”͵Œ‘—”‡›•‹–Š‡‡š–„Ž‘…Ǥ‘™‡˜‡”ǡ–‘ƒ˜ƒ‹Ž‘ˆ–Š‹•„‡‡ϐ‹–ǡ‡š‡’–‹‘‹
”‡•’‡…–‘ˆŒ‘—”‡›•Š‘—Ž†„‡—–‹Ž‹•‡†‹–Š‡ϐ‹”•–…ƒŽ‡†ƒ”›‡ƒ”‘ˆ–Š‡‡š–„Ž‘…Ǥ‘–Š‡”™‘”†•ǡ‹…ƒ•‡‘ˆ…ƒ””›‘˜‡”ǡ
‡š‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ͵Œ‘—”‡›•‹ƒ„Ž‘…ǡ’”‘˜‹†‡†‡š‡’–‹‘‹”‡•’‡…–‘ˆƒ–Ž‡ƒ•–ͳŒ‘—”‡›‹•
…Žƒ‹‡†‹–Š‡ϐ‹”•–›‡ƒ”‘ˆ–Š‡‡š–„Ž‘…Ǥš‡’–‹‘‹•‹”‡•’‡…–‘ˆƒ…–—ƒŽ‡š’‡†‹–—”‡‘ˆƒ”‡ǡŠ‡…‡ǡ‹ˆ‘Œ‘—”‡›
‹•’‡”ˆ‘”‡†ǡ–Š‡‘‡š‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡Ǥ
Familyǣ ƒ‹Ž›™‹ŽŽ‹…Ž—†‡•’‘—•‡ƒ†…Š‹Ž†”‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǡ™Š‡–Š‡”†‡’‡†‡–‘”‘–ƒ†’ƒ”‡–•ǡ„”‘–Š‡”•ǡ
•‹•–‡”•‘ˆ–Š‡‹†‹˜‹†—ƒŽ‘”ƒ›‘ˆ–Š‡™Š‘ƒ”‡™Š‘ŽŽ›‘”ƒ‹Ž›†‡’‡†‡–‘Š‹Ǥš‡’–‹‘‹•”‡•–”‹…–‡†–‘‘Ž›
ʹ•—”˜‹˜‹‰…Š‹Ž†”‡„‘”ƒˆ–‡”…–‘„‡”ͳǡͳͻͻͺȋ—Ž–‹’Ž‡„‹”–Š•ƒˆ–‡”ϐ‹”•–•‹‰Ž‡…Š‹Ž†™‹ŽŽ„‡…‘•‹†‡”‡†ƒ•‘‡
…Š‹Ž†‘Ž›ȌǡŠ‘™‡˜‡”ǡ•—…Š”‡•–”‹…–‹‘‹•‘–ƒ’’Ž‹…ƒ„Ž‡–‘…Š‹Ž†”‡„‘”„‡ˆ‘”‡…–‘„‡”ͳǡͳͻͻͺǤ

CASE LAW
21.01.2009 ‘‹••‹‘‡” ‘ˆ …‘‡ –ƒš Ƭ  ˜• Ȁ• ƒ”•‡ Ƭ Supreme Court
Toubro Ltd.
Whether the assessee(s) was under statutory obligation under Income Tax Act, 1961, and/or the Rules
to collect evidence to show that its employee(s) had actually utilized the amount(s) paid towards Leave
Travel Concession(s)/Conveyance Allowance?
Judgement:Š‡‘‘—”ƒ„Ž‡—’”‡‡‘—”–‘ˆ†‹ƒŠƒ•…‘•‹†‡”‡†–Š‡“—‡•–‹‘™Š‡–Š‡”–Š‡‡’Ž‘›‡”
Šƒ•ƒ›‘„Ž‹‰ƒ–‹‘—†‡”–Š‡…–Ȁ—Ž‡•–‘…‘ŽŽ‡…–‡˜‹†‡…‡–‘•Š‘™–Šƒ––Š‡‡’Ž‘›‡‡Šƒ†ƒ…–—ƒŽŽ›—–‹Ž‹œ‡†
–Š‡ƒ‘—–’ƒ‹†–‘™ƒ”†•ǤŠ‡‘‘—”ƒ„Ž‡—’”‡‡‘—”–‘ˆ†‹ƒ‘„•‡”˜‡†–Šƒ––Š‡„‡‡ˆ‹…‹ƒ”›‘ˆ
‡š‡’–‹‘—†‡”‡…–‹‘ͳͲȋͷȌ‹•–Š‡‹†‹˜‹†—ƒŽ‡’Ž‘›‡‡Ǥ–ƒŽ•‘”‡ˆ‡””‡†–‘–Š‡ƒ—ƒŽ…‹”…—Žƒ”‹••—‡†„›
–Š‡—†‡”‡…–‹‘ͳͻʹ™Š‡”‡—†‡”‰—‹†ƒ…‡‹•‰‹˜‡–‘‡’Ž‘›‡”•‘–Š‡ƒ‡”‹™Š‹…Š–ƒš‹•
”‡“—‹”‡†–‘„‡†‡†—…–‡†ˆ”‘•ƒŽƒ”›’ƒ‹†–‘‡’Ž‘›‡‡•ǤŠ‡‘—”–Šƒ•Š‡Ž†–Šƒ––Š‡•ƒ‹†‹”…—Žƒ”†‹†‘–
”‡“—‹”‡ƒ‡’Ž‘›‡”–‘‡šƒ‹‡–Š‡•—’’‘”–‹‰‡˜‹†‡…‡–‘–Š‡†‡…Žƒ”ƒ–‹‘•—„‹––‡†„›ƒ‡’Ž‘›‡‡ƒ•
ˆƒ”ƒ•‹•…‘…‡”‡†Ǥƒ•‡†‘–Š‹•ǡ–Š‡‘—”–Šƒ•Š‡Ž†–Šƒ––Š‡‡’Ž‘›‡”Šƒ•‘‘„Ž‹‰ƒ–‹‘–‘…‘ŽŽ‡…–
•—…Š‡˜‹†‡…‡‘”–‘˜‡”‹ˆ›–Š‡…Žƒ‹Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 93

Remuneration received by individuals, who are not citizens of India [Section 10(6)]
…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽ™Š‘ƒ”‡‘–ƒ…‹–‹œ‡‘ˆ†‹ƒƒ”‡‡–‹–Ž‡†–‘…‡”–ƒ‹‡š‡’–‹‘•—†‡”•‡…–‹‘ͳͲȋ͸Ȍ™Š‹…Š
ƒ”‡†‹•…—••‡†ƒ•ˆ‘ŽŽ‘™•ǣ
‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›•’‡…‹ϐ‹‡††‹’Ž‘ƒ–•ƒ†–Š‡‹”•–ƒˆˆȏ‡…–‹‘ͳͲȋ͸Ȍȋ‹‹ȌȐ
•’‡”•‡…–‹‘ͳͲȋ͸Ȍȋ‹‹Ȍ
Ȉ ‹…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽ™Š‘‹•‘–ƒ…‹–‹œ‡‘ˆ†‹ƒǡ
Ȉ ”‡—‡”ƒ–‹‘ ”‡…‡‹˜‡† „› Š‹ ƒ• ƒ ‘ˆϐ‹…‹ƒŽ ȋ„› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†Ȍ ‘ˆ ƒ „ƒ••›ǡ ‹‰Š ‘‹••‹‘ǡ
‘•—Žƒ–‡‘””ƒ†‡‡’”‡•‡–ƒ–‹˜‡‘ˆƒ ‘”‡‹‰–ƒ–‡ǡ‘”‡„‡”‘ˆ–Š‡•–ƒˆˆ‘ˆƒ›‘ˆ–Šƒ–‘ˆϐ‹…‹ƒŽ‹•‡š‡’–
ˆ”‘–ƒšǡ‹ˆ…‘””‡•’‘†‹‰†‹ƒ‘ˆϐ‹…‹ƒŽ‹–Šƒ–ˆ‘”‡‹‰…‘—–”›‡Œ‘›•ƒ•‹‹Žƒ”‡š‡’–‹‘Ǥ

Salary of a foreign employee and non-resident member of crew [Section 10(6)(vi), (viii)]
•’‡”•‡…–‹‘ͳͲȋ͸Ȍȋ˜‹Ȍǡ–Š‡”‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›ƒˆ‘”‡‹‰ƒ–‹‘ƒŽƒ•ƒ‡’Ž‘›‡‡‘ˆƒˆ‘”‡‹‰‡–‡”’”‹•‡ˆ‘”
•‡”˜‹…‡•”‡†‡”‡†„›Š‹†—”‹‰Š‹••–ƒ›‹†‹ƒ‹•‡š‡’–ˆ”‘–ƒšǡ’”‘˜‹†‡†–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡ˆ—Žϐ‹ŽŽ‡†ǣ
ȋƒȌ –Š‡ˆ‘”‡‹‰‡–‡”’”‹•‡‹•‘–‡‰ƒ‰‡†‹ƒ›–”ƒ†‡‘”„—•‹‡••‹†‹ƒǢ
ȋ„Ȍ Š‹••–ƒ›‹†‹ƒ†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡ƒ’‡”‹‘†‘ˆͻͲ†ƒ›•‹•—…Š›‡ƒ”Ǣƒ†
ȋ…Ȍ •—…Š”‡—‡”ƒ–‹‘‹•‘–Ž‹ƒ„Ž‡–‘„‡†‡†—…–‡†ˆ”‘–Š‡‹…‘‡‘ˆ–Š‡‡’Ž‘›‡”Ǥ

•’‡”•‡…–‹‘ͳͲȋ͸Ȍȋ˜‹‹‹Ȍǡƒ›•ƒŽƒ”‹‡•”‡…‡‹˜‡†„›‘”†—‡–‘ƒ‘Ǧ”‡•‹†‡–ˆ‘”‡‹‰ƒ–‹‘ƒŽˆ‘”•‡”˜‹…‡•”‡†‡”‡†
‹…‘‡…–‹‘™‹–ŠŠ‹•‡’Ž‘›‡–‘ƒˆ‘”‡‹‰•Š‹’™Š‡”‡Š‹•–‘–ƒŽ•–ƒ›‹†‹ƒ†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡
ƒ’‡”‹‘†‘ˆͻͲ†ƒ›•‹–Š‡›‡ƒ”‹•‡š‡’–ˆ”‘–ƒšǤ
Remuneration of a foreign trainee [Section 10(6)(xi)]
•’‡”•‡…–‹‘ͳͲȋ͸Ȍȋš‹Ȍǡ–Š‡”‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›ƒˆ‘”‡‹‰–”ƒ‹‡‡ƒ•ƒ‡’Ž‘›‡‡‘ˆˆ‘”‡‹‰
‘˜‡”‡–
†—”‹‰ Š‹• •–ƒ› ‹ †‹ƒ ‹ …‘‡…–‹‘ ™‹–Š Š‹• –”ƒ‹‹‰ ‹ ƒ› ‡•–ƒ„Ž‹•Š‡– ‘” ‘ˆϐ‹…‡ ‘ˆǡ ‘” ‹ ƒ› —†‡”–ƒ‹‰
‘™‡†„›–Š‡
‘˜‡”‡–Ǣ‘”ƒ›…‘’ƒ›‘™‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ‘”ƒ›–ƒ–‡
‘˜‡”‡–‘”ƒ›
…‘’ƒ›™Š‹…Š‹•ƒ•—„•‹†‹ƒ”›‘ˆƒ…‘’ƒ›”‡ˆ‡””‡†–‘ƒ„‘˜‡‘”ƒ›…‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ‡–”ƒŽǡ
–ƒ–‡ ‘” ”‘˜‹…‹ƒŽ …– ‘” ƒ› …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ™Š‘ŽŽ› ϐ‹ƒ…‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡–ǡ ‘” ƒ› –ƒ–‡

‘˜‡”‡–ƒšǡ‹•‡š‡’–ˆ”‘–ƒšǤ
Tax paid on behalf of foreign company deriving income by way of royalty or fees for technical
services [Section 10(6A)]
ƒš’ƒ‹†„›‡–”ƒŽ
‘˜‡”‡–ǡ–ƒ–‡
‘˜‡”‡–‘”ƒ†‹ƒ…‘…‡”‘„‡ŠƒŽˆ‘ˆƒˆ‘”‡‹‰…‘’ƒ›†‡”‹˜‹‰
‹…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›‘”ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•‹’—”•—ƒ…‡‘ˆƒƒ‰”‡‡‡–ƒ†‡ƒˆ–‡”ƒ”…Š͵ͳǡͳͻ͹͸„—–
„‡ˆ‘”‡ —‡ͳǡʹͲͲʹ™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš‹–Š‡Šƒ†•‘ˆ•—…Šˆ‘”‡‹‰…‘’ƒ›’”‘˜‹†‡†•—…Šƒ‰”‡‡‡–‹•‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡‹†—•–”‹ƒŽ’‘Ž‹…›‘ˆ–Š‡†‹ƒ
‘˜‡”‡–‘”‹–‹•ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
Tax paid on behalf of foreign company or non-resident in respect of other income [Section 10(6B)]
ƒš’ƒ‹†„›‡–”ƒŽ
‘˜‡”‡–ǡ–ƒ–‡
‘˜‡”‡–‘”ƒ†‹ƒ…‘…‡”‘„‡ŠƒŽˆ‘ˆƒˆ‘”‡‹‰…‘’ƒ›‘”‘Ǧ
”‡•‹†‡–‹”‡•’‡…–‘ˆƒ›‹…‘‡ȋ‘–„‡‹‰•ƒŽƒ”›ǡ”‘›ƒŽ–›‘”ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•Ȍ™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš‹
–Š‡Šƒ†•‘ˆ•—…Šˆ‘”‡‹‰…‘’ƒ›‘”‘Ǧ”‡•‹†‡–‹ˆ•—…Š‹…‘‡‹•”‡…‡‹˜‡†‹’—”•—ƒ…‡‘ˆƒƒ‰”‡‡‡–‡–‡”‡†
‹–‘ „‡ˆ‘”‡ —‡ ͳǡ ʹͲͲʹ „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ™‹–Š –Š‡
‘˜‡”‡– ‘ˆ ƒ ˆ‘”‡‹‰ –ƒ–‡ ‘” ‹–‡”ƒ–‹‘ƒŽ
‘”‰ƒ‹•ƒ–‹‘‘”ƒ›‘–Š‡””‡Žƒ–‡†ƒ‰”‡‡‡–ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
Tax paid on behalf of foreign Government or foreign enterprise deriving income by way of lease
of aircraft or aircraft engine [Section 10(6BB)]
ƒš’ƒ‹†„›ƒ†‹ƒ…‘’ƒ›ǡ‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ‘’‡”ƒ–‹‘‘ˆƒ‹”…”ƒˆ–ǡ‘„‡ŠƒŽˆ‘ˆˆ‘”‡‹‰
‘˜‡”‡–‘”
ˆ‘”‡‹‰‡–‡”’”‹•‡†‡”‹˜‹‰‹…‘‡„›™ƒ›‘ˆŽ‡ƒ•‡‘ˆƒ‹”…”ƒˆ–‘”ƒ‹”…”ƒˆ–‡‰‹‡™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš‹–Š‡Šƒ†•
‘ˆ •—…Š ˆ‘”‡‹‰
‘˜‡”‡– ‘” ˆ‘”‡‹‰ ‡–‡”’”‹•‡ ‹ˆ •—…Š Ž‡ƒ•‡ ”‡–ƒŽ ‹• ”‡…‡‹˜‡† —†‡” ƒ ƒ‰”‡‡‡– ™Š‹…Š ‹•
ƒ’’”‘˜‡†„›‡–”ƒŽ
‘˜‡”‡–ƒ†‡–‡”‡††—”‹‰–Š‡’‡”‹‘†„‡–™‡‡͵ͳǦ͵Ǧͳͻͻ͹–‘ͳǦͶǦͳͻͻͻǡ‘”ƒˆ–‡”͵ͳǦ͵ǦʹͲͲ͹Ǥ
 94 Lesson 3 Ȉ EP-TL

‡…Š‹…ƒŽˆ‡‡•”‡…‡‹˜‡†„›ƒ‘–‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ›ȏ‡…–‹‘ͳͲȋ͸ȌȐ
‡…–‹‘ͳͲȋ͸Ȍ‰”ƒ–•‡š‡’–‹‘ˆ”‘–ƒš‹”‡•’‡…–‘ˆ‹…‘‡ƒ”‹•‹‰–‘‘–‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ›„›™ƒ›‘ˆ”‘›ƒŽ–›
‘”ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•”‡…‡‹˜‡†‹’—”•—ƒ…‡‘ˆƒƒ‰”‡‡‡–‡–‡”‡†‹–‘™‹–Š–Šƒ–
‘˜‡”‡–ˆ‘”’”‘˜‹†‹‰
•‡”˜‹…‡•‹‘”‘—–•‹†‡†‹ƒ‹’”‘Œ‡…–•…‘‡…–‡†™‹–Š•‡…—”‹–›‘ˆ†‹ƒǤ
Royalty or fees for technical services payment by NTRO to a non resident [Section 10 (6D)]
›‹…‘‡ƒ”‹•‹‰–‘ƒ‘Ǧ”‡•‹†‡–ǡ‘–„‡‹‰ƒ…‘’ƒ›ǡ‘”ƒˆ‘”‡‹‰…‘’ƒ›ǡ„›™ƒ›‘ˆ”‘›ƒŽ–›ˆ”‘ǡ‘”ˆ‡‡•ˆ‘”
–‡…Š‹…ƒŽ •‡”˜‹…‡• ”‡†‡”‡† ‹ ‘” ‘—–•‹†‡ †‹ƒ –‘ –Š‡ ƒ–‹‘ƒŽ ‡…Š‹…ƒŽ ‡•‡ƒ”…Š ”‰ƒ‹•ƒ–‹‘ ȋȌǤ
‘•‡“—‡–Ž›™‹ŽŽ‘–„‡”‡“—‹”‡†–‘†‡†—…––ƒš‘•—…Š’ƒ›‡–•Ǥ
Allowance/perquisites to Government employee outside India [Section 10(7)]
•’‡”•‡…–‹‘ͳͲȋ͹Ȍǡƒ›ƒŽŽ‘™ƒ…‡•‘”’‡”“—‹•‹–‡•’ƒ‹†‘”ƒŽŽ‘™‡†ƒ••—…Š‘—–•‹†‡†‹ƒ„›–Š‡
‘˜‡”‡––‘ƒ
…‹–‹œ‡‘ˆ†‹ƒˆ‘””‡†‡”‹‰•‡”˜‹…‡‘—–•‹†‡†‹ƒ‹•‡š‡’–ˆ”‘–ƒšǤ
Income of foreign Government employee under co-operative technical assistance programme
[Section 10(8)]
•’‡”•‡…–‹‘ͳͲȋͺȌǡ”‡—‡”ƒ–‹‘”‡…‡‹˜‡††‹”‡…–Ž›‘”‹†‹”‡…–Ž›„›ƒ‹†‹˜‹†—ƒŽǡˆ”‘–Š‡ˆ‘”‡‹‰
‘˜‡”‡–‹
…‘‡…–‹‘ ™‹–Š ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ –‡…Š‹…ƒŽ ƒ••‹•–ƒ…‡ ’”‘‰”ƒ‡ ƒ† ’”‘Œ‡…–• ‹ ƒ……‘”†ƒ…‡ ™‹–Š ƒ ƒ‰”‡‡‡–
‡–‡”‡†‹–‘„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ†•—…Šˆ‘”‡‹‰
‘˜‡”‡–ǡ‹•‡š‡’–ˆ”‘–ƒšǤ —”–Š‡”ǡ‡š‡’–‹‘‹•
ƒ˜ƒ‹Žƒ„Ž‡ ‹ ”‡•’‡…– ‘ˆ ƒ› ‘–Š‡” ‹…‘‡ ‘ˆ •—…Š ƒ ‹†‹˜‹†—ƒŽ ™Š‹…Š ƒ……”—‡• ‘” ƒ”‹•‡• ‘—–•‹†‡ †‹ƒ ƒ† ‹• ‘–
†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǡ’”‘˜‹†‡†•—…Š‹†‹˜‹†—ƒŽ‹•”‡“—‹”‡†–‘’ƒ›‹…‘‡Ǧ–ƒšȀ•‘…‹ƒŽ•‡…—”‹–›–ƒš–‘–Š‡
ˆ‘”‡‹‰
‘˜‡”‡–Ǥ
Remuneration or fees received by a non-resident consultant/its foreign employees [Section
10(8A), (8B)]
†‡”•‡…–‹‘ͳͲȋͺȌǡȋƒȌ”‡—‡”ƒ–‹‘‘”ˆ‡‡•”‡…‡‹˜‡†„›ƒ…‘•—Ž–ƒ–†‹”‡…–Ž›‘”‹†‹”‡…–Ž›‘—–‘ˆ–Š‡ˆ—†•ƒ†‡
ƒ˜ƒ‹Žƒ„Ž‡–‘ƒ‹–‡”ƒ–‹‘ƒŽ‘”‰ƒ‹•ƒ–‹‘ǡ—†‡”ƒ–‡…Š‹…ƒŽƒ••‹•–ƒ…‡ƒ‰”‡‡‡–„‡–™‡‡•—…Š‘”‰ƒ‹•ƒ–‹‘ƒ†
–Š‡
‘˜‡”‡–‘ˆƒˆ‘”‡‹‰–ƒ–‡ƒ†ȋ„Ȍƒ›‘–Š‡”‹…‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•–‘Š‹‘—–•‹†‡†‹ƒƒ†‹•‘–
†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‹†‹ƒǡ‹”‡•’‡…–‘ˆ™Š‹…Š•—…Š…‘•—Ž–ƒ–‹•”‡“—‹”‡†–‘’ƒ›‹…‘‡Ǧ–ƒšȀ•‘…‹ƒŽ•‡…—”‹–›
–ƒš–‘–Š‡ˆ‘”‡‹‰
‘˜‡”‡–‘ˆ–Š‡…‘—–”›‘ˆŠ‹•‘”‹‰‹ǡ‹•‡š‡’–ˆ”‘–ƒšǤ
Income of a family member of an employee serving under co-operative technical assistance
programme [Section 10(9)]
•’‡”•‡…–‹‘ͳͲȋͻȌǡ–Š‡‹…‘‡‘ˆƒ›‡„‡”‘ˆ–Š‡ˆƒ‹Ž›‘ˆƒ›•—…Š‹†‹˜‹†—ƒŽƒ•‹•”‡ˆ‡””‡†–‘‹•‡…–‹‘
ͳͲȋͺȌȀȋͺȌȀȋͺȌƒ……‘’ƒ›‹‰Š‹–‘†‹ƒǡ™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•‘—–•‹†‡†‹ƒƒ†‹•‘–†‡‡‡†–‘ƒ……”—‡‘”
ƒ”‹•‡‹†‹ƒǡ‹”‡•’‡…–‘ˆ™Š‹…Š•—…Š‡„‡”‹•”‡“—‹”‡†–‘’ƒ›ƒ›‹…‘‡‘”•‘…‹ƒŽ•‡…—”‹–›–ƒš–‘–Š‡
‘˜‡”‡–
‘ˆ–Šƒ–ˆ‘”‡‹‰–ƒ–‡‘”…‘—–”›‘ˆ‘”‹‰‹‘ˆ•—…Š‡„‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹•‡š‡’–ˆ”‘–ƒšǤ
Retrenchment compensation [Section 10(10B)]
•’‡”•‡…–‹‘ͳͲȋͳͲȌǡ…‘’‡•ƒ–‹‘”‡…‡‹˜‡†ƒ––Š‡–‹‡‘ˆ”‡–”‡…Š‡–‹•‡š‡’–ˆ”‘–ƒš–‘–Š‡‡š–‡–‘ˆŽ‘™‡”‘ˆ
–Š‡ˆ‘ŽŽ‘™‹‰ǣȋƒȌƒ‘—–…ƒŽ…—Žƒ–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ʹͷ ȋ„Ȍ‘ˆ–Š‡†—•–”‹ƒŽ‹•’—–‡…–ǡ
ͳͻͶ͹Ǣ‘”ȋ„Ȍƒš‹—ƒ‘—–•’‡…‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ȋ•ǤͷǡͲͲǡͲͲͲȌǢȋ…Ȍ…–—ƒŽƒ‘—–”‡…‡‹˜‡†Ǥ
†‡”–Š‡†—•–”‹ƒŽ‹•’—–‡…–ǡƒ™‘”ƒ‹•‡–‹–Ž‡†–‘”‡–”‡…Š‡–…‘’‡•ƒ–‹‘ǡ‡“—ƒŽ–‘ͳͷ†ƒ›•ǯƒ˜‡”ƒ‰‡
’ƒ›ˆ‘”‡ƒ…Š…‘’Ž‡–‡†›‡ƒ”‘ˆ…‘–‹—‘—••‡”˜‹…‡‘”ƒ›’ƒ”–‹‡š…‡••‘ˆ•‹š‘–Š•Ǥ‘’‡•ƒ–‹‘‹‡š…‡••‘ˆ
ƒˆ‘”‡•ƒ‹†Ž‹‹–•‹•–ƒšƒ„Ž‡ƒ••ƒŽƒ”›Ǥ‘™‡˜‡”ǡ–Š‡ƒˆ‘”‡•ƒ‹†Ž‹‹–‹•‘–ƒ’’Ž‹…ƒ„Ž‡‹…ƒ•‡•™Š‡”‡…‘’‡•ƒ–‹‘‹•
’ƒ‹†—†‡”ƒ›•…Š‡‡ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
Compensation for Bhopal Gas Leak Disaster [Section 10(10BB)]
‘’‡•ƒ–‹‘ȏ‹ƒ……‘”†ƒ…‡™‹–ŠŠ‘’ƒŽ
ƒ•‡ƒ‹•ƒ•–‡”ȋ”‘…‡••‹‰‘ˆŽƒ‹•Ȍ…–ǡͳͻͺͷȐ”‡…‡‹˜‡†„›˜‹…–‹•
‘ˆ Š‘’ƒŽ ‰ƒ• Ž‡ƒ †‹•ƒ•–‡” ‹• ‡š‡’– ˆ”‘ –ƒšǤ‘™‡˜‡”ǡ …‘’‡•ƒ–‹‘ ”‡…‡‹˜‡† ˆ‘” ƒ› ‡š’‡†‹–—”‡ ™Š‹…Š ‹•
ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘ˆ”‘–ƒšƒ„Ž‡‹…‘‡‹•‘–‡š‡’–Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 95

Compensation on account of any disaster [Section 10(10BC)]

›ƒ‘—–”‡…‡‹˜‡†ˆ”‘–Š‡
Ȉ ‡–”ƒŽ
‘˜‡”‡–‘”
Ȉ –ƒ–‡
‘˜‡”‡–‘”
Ȉ ƒ‘…ƒŽ—–Š‘”‹–›„›
Ȉ ƒ‹†‹˜‹†—ƒŽ‘”Š‹•Ž‡‰ƒŽŠ‡‹”•
Ȉ ƒ•…‘’‡•ƒ–‹‘‘ƒ……‘—–‘ˆƒ›†‹•ƒ•–‡”
 ‹•‡š‡’–ˆ”‘–ƒšǤ

‘™‡˜‡”ǡ‘†‡†—…–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡ƒ‘—–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡–‘–Š‡‡š–‡–•—…Š‹†‹˜‹†—ƒŽ‘”
Š‹•Ž‡‰ƒŽŠ‡‹”•Šƒ•„‡‡ƒŽŽ‘™‡†ƒ†‡†—…–‹‘—†‡”–Š‡…–‘ƒ……‘—–‘ˆŽ‘••‘”†ƒƒ‰‡…ƒ—•‡††—‡–‘•—…Š†‹•ƒ•–‡”Ǥ
Disaster here means
Ȉ ƒ›†‹•ƒ•–‡”†—‡–‘ƒ›ƒ–—”ƒŽ‘”
Ȉ ƒǦƒ†‡…ƒ—•‡•‘”
Ȉ „›ƒ……‹†‡–Ȁ‡‰Ž‹‰‡…‡™Š‹…Š”‡•—Ž–•‹•—„•–ƒ–‹ƒŽŽ‘••‘ˆŠ—ƒŽ‹ˆ‡‘”
Ȉ †ƒƒ‰‡–‘’”‘’‡”–›‘”‡˜‹”‘‡–ƒ†
Ȉ –Š‡ƒ‰‹–—†‡‘ˆ•—…Š†‹•ƒ•–‡”‹•„‡›‘†…‘’‹‰…ƒ’ƒ…‹–›‘ˆ…‘—‹–›‘ˆ–Š‡ƒˆˆ‡…–‡†ƒ”‡ƒǤ

Payment at the time of voluntary retirement [Section 10(10C)]

•’‡”•‡…–‹‘ͳͲȋͳͲȌǡƒ›…‘’‡•ƒ–‹‘”‡…‡‹˜‡†ƒ––Š‡–‹‡‘ˆ˜‘Ž—–ƒ”›”‡–‹”‡‡–‘”–‡”‹ƒ–‹‘‘ˆ•‡”˜‹…‡‹•
‡š‡’–ˆ”‘–ƒšǡ‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
9 ‘’‡•ƒ–‹‘‹•”‡…‡‹˜‡†ƒ––Š‡–‹‡‘ˆ˜‘Ž—–ƒ”›”‡–‹”‡‡–‘”–‡”‹ƒ–‹‘ȋ‘”‹–Š‡…ƒ•‡‘ˆƒ‡’Ž‘›‡‡
‘ˆ’—„Ž‹…•‡…–‘”‘’ƒ›ǡƒ––Š‡–‹‡‘ˆ˜‘Ž—–ƒ”›•‡’ƒ”ƒ–‹‘Ȍ
9 ‘’‡•ƒ–‹‘‹•”‡…‡‹˜‡†„›ƒ‡’Ž‘›‡‡‘ˆˆ‘ŽŽ‘™‹‰—†‡”–ƒ‹‰•ǦƒȌ’—„Ž‹…•‡…–‘”…‘’ƒ›Ǣ‘”„Ȍƒ›
‘–Š‡”…‘’ƒ›Ǣ‘”…Ȍƒƒ—–Š‘”‹–›‡•–ƒ„Ž‹•Š‡†—†‡”ƒ‡–”ƒŽǡ–ƒ–‡‘””‘˜‹…‹ƒŽ…–Ǣ‘”†ȌƒŽ‘…ƒŽƒ—–Š‘”‹–›Ǣ
‘”‡Ȍƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǣ‘”ˆȌƒ‹˜‡”•‹–›‡•–ƒ„Ž‹•Š‡†‘”‹…‘”’‘”ƒ–‡†„›‘”—†‡”ƒ‡–”ƒŽǡ–ƒ–‡‘”
”‘˜‹…‹ƒŽ …– ƒ† ƒ ‹•–‹–—–‹‘ †‡…Žƒ”‡† –‘ „‡ ƒ ‹˜‡”•‹–› —†‡” •‡…–‹‘ ͵ ‘ˆ –Š‡ ‹˜‡”•‹–›
”ƒ–•
‘‹••‹‘…–ǡͳͻͷ͸ȋ͵‘ˆͳͻͷ͸ȌǢ‘”‰Ȍƒ†‹ƒ•–‹–—–‡‘ˆ‡…Š‘Ž‘‰›™‹–Š‹–Š‡‡ƒ‹‰‘ˆ…Žƒ—•‡ȋ‰Ȍ‘ˆ
•‡…–‹‘͵‘ˆ–Š‡•–‹–—–‡•‘ˆ‡…Š‘Ž‘‰›…–ǡͳͻ͸ͳȋͷͻ‘ˆͳͻ͸ͳȌǢ‘”ŠȌƒ›–ƒ–‡
‘˜‡”‡–Ǣ‘”‹Ȍ–Š‡‡–”ƒŽ

‘˜‡”‡–Ǣ‘”ŒȌ‘–‹ϐ‹‡†‹•–‹–—–‡•Šƒ˜‹‰‹’‘”–ƒ…‡–Š”‘—‰Š‘—–†‹ƒ‘”‹ƒ›–ƒ–‡‘”–ƒ–‡•ǡȌ‘–‹ϐ‹‡†
‹•–‹–—–‡‘ˆƒƒ‰‡‡–Ǥ
9 ‘’‡•ƒ–‹‘ ‹• ”‡…‡‹˜‡† ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ •…Š‡‡ ‘ˆ ˜‘Ž—–ƒ”› ”‡–‹”‡‡–Ȁ•‡’ƒ”ƒ–‹‘ǡ ™Š‹…Š ‹•
ˆ”ƒ‡†‹ƒ……‘”†ƒ…‡™‹–Š‰—‹†‡Ž‹‡•’”‡•…”‹„‡†—†‡”—Ž‡ʹ‘ˆ…‘‡Ǧ–ƒš—Ž‡•ǡͳͻ͸ʹǤƒš‹—
ƒ‘—–‘ˆ‡š‡’–‹‘‹••ǤͷǡͲͲǡͲͲͲǤŠ‡”‡‡š‡’–‹‘‹•ƒŽŽ‘™‡†–‘ƒ‡’Ž‘›‡‡—†‡”•‡…–‹‘ͳͲȋͳͲȌ
ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ǡ‘‡š‡’–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘Š‹ˆ‘”ƒ›‘–Š‡”ƒ••‡••‡–
›‡ƒ”Ǥ ‹–Š ‡ˆˆ‡…– ˆ”‘ ƒ••‡••‡– ›‡ƒ” ʹͲͳͲǦͳͳǡ •‡…–‹‘ ͳͲȋͳͲȌ Šƒ• „‡‡ ƒ‡†‡† –‘ ’”‘˜‹†‡ –Šƒ–
™Š‡”‡ƒ›”‡Ž‹‡ˆŠƒ•„‡‡ƒŽŽ‘™‡†–‘ƒ••‡••‡‡•—†‡”•‡…–‹‘ͺͻˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”‹”‡•’‡…–‘ˆ
ƒ›ƒ‘—–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡‘Š‹•˜‘Ž—–ƒ”›”‡–‹”‡‡–‘”–‡”‹ƒ–‹‘‘ˆ•‡”˜‹…‡‘”˜‘Ž—–ƒ”›
•‡’ƒ”ƒ–‹‘ǡ‘‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͳͲȌ•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘Š‹‹”‡Žƒ–‹‘–‘•—…Š‘”ƒ›‘–Š‡”
ƒ••‡••‡–›‡ƒ”Ǥ
 96 Lesson 3 Ȉ EP-TL

CASE LAW
‡–‹”‹‰‡’Ž‘›‡‡•‘ˆ—†‡”™ƒ•‡Ž‹‰‹„Ž‡ˆ‘”•‡…–‹‘ͷͶȋͷͶȌ‡š‡’–‹‘ȏ••‡••‡–›‡ƒ”͸ͶͶͺǦ
ͶͻȐȏˆƒ˜‘—”‘ˆƒ••‡••‡Ȑ
R. Banumathy ˜. ȏ͸Ͷͷ;Ȑȋƒ†”ƒ•‹‰Š‘—”–Ȍ
Š‡ƒ••‡••‡‡ƒ‡’Ž‘›‡‡‘ˆ„ƒ‘’–‡†ˆ‘”ƒ”Ž›‡–‹”‡‡–’–‹‘ƒŽ…Š‡‡ƒ†”‡…‡‹˜‡†ƒ…‘•‘Ž‹†ƒ–‡†
’ƒ›‡–Ǥ……‘”†‹‰–‘–Š‡…‘‡ƒš‡’ƒ”–‡–ǡ‘Ž—–ƒ”›‡–‹”‡‡–…Š‡‡‹••—‡†„›–Š‡ƒ™ƒ•
‘–‹…‘ˆ‘”‹–›™‹–Š–Š‡—Ž‡•ǤŠ‡”‡ˆ‘”‡ǡ–Š‡‡’Ž‘›‡‡•™‡”‡‘–‡–‹–Ž‡†–‘ƒ›‡š‡’–‹‘—†‡”•‡…–‹‘
ͳͲȋͳͲȌ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
‡Ž†–Šƒ––Š‡—’”‡‡‘—”–ƒ†–Š‡‘„ƒ›‹‰Š‘—”–Šƒ˜‡†‡ƒŽ–™‹–Š˜‘Ž—–ƒ”›”‡–‹”‡‡–•…Š‡‡‘ˆ–Š‡
ƒ†Š‡Ž†–Šƒ–”‡–‹”‹‰‡’Ž‘›‡‡•ƒ”‡‡Ž‹‰‹„Ž‡ˆ‘”•‡…–‹‘ͳͲȋͳͲȌ‡š‡’–‹‘•Ǥ‡…–‹‘ͳͲȋͳͲȌƒ†”—Ž‡ʹǡ
†‘‘–•’‡…‹ϐ‹…ƒŽŽ›ƒ’’Ž›–‘–Š‡ƒŽ‘‡ƒ†ǡ–Š‡”‡ˆ‘”‡ǡ„‡‡ϐ‹–™ƒ•ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡ƒŽ•‘ƒ†–Š—•ǡ–Š‡
ƒ••‡••‡‡™ƒ•‡–‹–Ž‡†–‘•‡…–‹‘ͳͲȋͳͲȌ„‡‡ϐ‹–Ǥ

Tax on perquisite paid by the Employer [Section 10(10CC)]

‡”“—‹•‹–‡•–‘‡’Ž‘›‡‡•‡ƒƒ›ˆƒ…‹Ž‹–›’”‘˜‹†‡†„›–Š‡‡’Ž‘›‡”–‘–Š‡‡’Ž‘›‡‡•ǤŠ‡”‡ƒ”‡–™‘–›’‡•‘ˆ
’‡”“—‹•‹–‡•ǡ ˜‹œǤǡ ‘‡–ƒ”› ƒ† ‘Ǧ‘‡–ƒ”›Ǥ ƒŽ—‡ ‘ˆ ’‡”“—‹•‹–‡ ‹• …Šƒ”‰‡† –‘ –ƒš ‹ –Š‡ Šƒ†• ‘ˆ –Š‡
‡’Ž‘›‡‡•ǡŠ‘™‡˜‡”ǡ–Š‡‡’Ž‘›‡”ƒ›ƒ–Š‹•™‹ŽŽ’ƒ›–ƒšȋ‘„‡ŠƒŽˆ‘ˆ‡’Ž‘›‡‡•Ȍ‘•—…Š’‡”“—‹•‹–‡•Ǥ•—…Š
ƒ…ƒ•‡ǡ–Š‡ƒ‘—–‘ˆ–ƒš’ƒ‹†‘•—…Š’‡”“—‹•‹–‡•„›–Š‡‡’Ž‘›‡”‘„‡ŠƒŽˆ‘ˆ–Š‡‡’Ž‘›‡‡•™‹ŽŽ„‡–”‡ƒ–‡†
ƒ• ‹…‘‡ ‘ˆ –Š‡ ‡’Ž‘›‡‡• ƒ† ‹• …Šƒ”‰‡† –‘ –ƒš ‹ Š‹• ȋ‹Ǥ‡Ǥǡ ‹ ‡’Ž‘›‡‡ǯ•Ȍ Šƒ†•Ǥ ‘™‡˜‡”ǡ „› ˜‹”–—‡ ‘ˆ
•‡…–‹‘ͳͲȋͳͲȌ–ƒš’ƒ‹†„›‡’Ž‘›‡”ȋ‘„‡ŠƒŽˆ‘ˆ‡’Ž‘›‡‡Ȍ‘‘Ǧ‘‡–ƒ”›’‡”“—‹•‹–‡•™‹ŽŽ„‡‡š‡’–
ˆ”‘ –ƒš ‹ –Š‡ Šƒ†• ‘ˆ ‡’Ž‘›‡‡•Ǥ —…Š –ƒš ’ƒ‹† „› –Š‡ ‡’Ž‘›‡” •ŠƒŽŽ ‘– „‡ ƒŽŽ‘™‡† ƒ• ƒ †‡†—…–‹„Ž‡
‡š’‡†‹–—”‡‹–Š‡Šƒ†•‘ˆ‡’Ž‘›‡”—†‡”•‡…–‹‘ͶͲǤ‡…–‹‘ͳͲȋͳͲȌ’”‘˜‹†‡•‡š‡’–‹‘‘Ž›‹”‡•’‡…–
‘ˆ –ƒš ‘ ‘Ǧ‘‡–ƒ”› ’‡”“—‹•‹–‡•Ǥ  ‘–Š‡” ™‘”†•ǡ –Š‹• •‡…–‹‘ †‘‡• ‘– ’”‘˜‹†‡ ‡š‡’–‹‘ ‹ ”‡•’‡…– ‘ˆ
’‡”“—‹•‹–‡•‘”–ƒš’ƒ‹†‘‘‡–ƒ”›’‡”“—‹•‹–‡•Ǥ
Reference Case LawǣŠ‡ƒ••‡••‡‡ǡƒ‡’Ž‘›‡‡ǡ…Žƒ‹‡†–Šƒ––Š‡–ƒš’ƒ‹†„›–Š‡‡’Ž‘›‡”‘Š‹••ƒŽƒ”›‹…‘‡‹•
‘–Ž‹ƒ„Ž‡–‘„‡‹…Ž—†‡†‹Š‹•–‘–ƒŽ‹…‘‡ƒ•‹–‹•‡š‡’–—†‡”•‡…–‹‘ͳͲȋͳͲȌǤ••‡••‹‰ˆϐ‹…‡”†‹•ƒŽŽ‘™‡†–Š‡
…Žƒ‹ǤŠ‡”‹„—ƒŽˆ‘ŽŽ‘™‹‰–Š‡’‡…‹ƒŽ„‡…Š‹ ‹‰•‘”’Ǥȋ Ȍ˜ǤȋʹͲͲ͹Ȍȋ’‡…‹ƒŽ‡…ŠȌ
ȋ‡ŽŠ‹”‹„—ƒŽȌŠ‡Ž†–Šƒ––ƒš„‘”‡„›–Š‡‡’Ž‘›‡”‘„‡ŠƒŽˆ‘ˆ–Š‡‡’Ž‘›‡‡™‘—Ž†…‘•–‹–—–‡ƒ‘Ǧ‘‡–ƒ”›
’ƒ›‡–ƒ••—…Š–Š‡•ƒ‡‹•‡š‡’–—†‡”•‡…–‹‘ͳͲȋͳͲȌǤ
Amount paid on life insurance policy [Section 10(10D)]
•’‡”•‡…–‹‘ͳͲȋͳͲȌǡƒ›ƒ‘—–”‡…‡‹˜‡†—†‡”ƒŽ‹ˆ‡‹•—”ƒ…‡’‘Ž‹…›ǡ‹…Ž—†‹‰„‘—•‹•‡š‡’–ˆ”‘–ƒšǤ
‘ŽŽ‘™‹‰’‘‹–••Š‘—Ž†„‡‘–‡†‹–Š‹•”‡‰ƒ”†ǣ

Situation Exemption u/s 10(10D)

 ”‡•’‡…– ‘ˆ’‘Ž‹…‹‡• ›•—”‡…‡‹˜‡†—†‡”ƒ‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ„‘—•‹•‡š‡’–Ǥ

‹••—‡† „‡ˆ‘”‡ͳǤͶǤʹͲͲ͵
 ”‡•’‡…– ‘ˆ’‘Ž‹…‹‡• ›•—”‡…‡‹˜‡†—†‡”ƒ‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ„‘—•‹•‡š‡’–Ǥ
‹••—‡† „‡–™‡‡ ‘™‡˜‡”ǡ ‡š‡’–‹‘ ™‘—Ž† ‘– „‡ ƒ˜ƒ‹Žƒ„Ž‡ ‹ˆ –Š‡ ’”‡‹— ’ƒ›ƒ„Ž‡ ˆ‘” ƒ› ‘ˆ –Š‡
ͳǤͶǤʹͲͲ͵ƒ†͵ͳǤ͵ǤʹͲͳʹ ›‡ƒ”•†—”‹‰–Š‡–‡”‘ˆ–Š‡’‘Ž‹…›‡š…‡‡†•ʹͲΨ‘ˆDzƒ…–—ƒŽ…ƒ’‹–ƒŽ•—ƒ••—”‡†dzǤ
 ”‡•’‡…– ‘ˆ’‘Ž‹…‹‡• ›•—”‡…‡‹˜‡†—†‡”ƒ ‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ„‘—•‹•‡š‡’–Ǥ
‹••—‡†‘ ‘”ƒˆ–‡” ‘™‡˜‡”ǡ ‡š‡’–‹‘ ™‘—Ž† ‘– „‡ ƒ˜ƒ‹Žƒ„Ž‡ ‹ˆ –Š‡ ’”‡‹— ’ƒ›ƒ„Ž‡ ˆ‘” ƒ› ‘ˆ –Š‡
ͳǤͶǤʹͲͳʹ„—–„‡ˆ‘”‡ ›‡ƒ”•†—”‹‰–Š‡–‡”‘ˆ–Š‡’‘Ž‹…›‡š…‡‡†•ͳͲΨ‘ˆDz‹‹—…ƒ’‹–ƒŽ•—ƒ••—”‡†dz
ͳǤͶǤʹͲͳ͵ —†‡”–Š‡’‘Ž‹…›‘–Š‡Šƒ’’‡‹‰‘ˆ–Š‡‹•—”‡†‡˜‡–ƒ–ƒ›–‹‡†—”‹‰–Š‡–‡”‘ˆ
–Š‡’‘Ž‹…›Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 97

 ”‡•’‡…– ‘ˆ’‘Ž‹…‹‡• ȋƒȌŠ‡”‡–Š‡‹•—”ƒ…‡‹•‘–Š‡Ž‹ˆ‡‘ˆƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›‘”•‡˜‡”‡†‹•ƒ„‹Ž‹–›ƒ•

‹••—‡†‘ ‘”ƒˆ–‡” ”‡ˆ‡””‡†–‘‹•‡…–‹‘ͺͲ‘”ƒ’‡”•‘•—ˆˆ‡”‹‰ˆ”‘†‹•‡ƒ•‡‘”ƒ‹Ž‡–ƒ••’‡…‹ϐ‹‡†
ͳǤͶǤʹͲͳ͵ —†‡”•‡…–‹‘ͺͲǤ
›•—”‡…‡‹˜‡†—†‡”ƒ‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ„‘—•‹•‡š‡’–Ǥ
‘™‡˜‡”ǡ ‡š‡’–‹‘ ™‘—Ž† ‘– „‡ ƒ˜ƒ‹Žƒ„Ž‡ ‹ˆ –Š‡ ’”‡‹— ’ƒ›ƒ„Ž‡ ˆ‘” ƒ› ‘ˆ –Š‡
›‡ƒ”•†—”‹‰–Š‡–‡”‘ˆ–Š‡’‘Ž‹…›‡š…‡‡†•ͳͷΨ‘ˆDz‹‹—…ƒ’‹–ƒŽ•—ƒ••—”‡†dz
—†‡”–Š‡’‘Ž‹…›‘–Š‡Šƒ’’‡‹‰‘ˆ–Š‡‹•—”‡†‡˜‡–ƒ–ƒ›–‹‡†—”‹‰–Š‡–‡”‘ˆ
–Š‡’‘Ž‹…›Ǥ
ȋ„Ȍ Š‡”‡ –Š‡ ‹•—”ƒ…‡ ‹• ‘ –Š‡ Ž‹ˆ‡ ‘ˆ ƒ› ’‡”•‘ǡ ‘–Š‡” –Šƒ ‡–‹‘‡† ‹ ȋƒȌ
ƒ„‘˜‡
›•—”‡…‡‹˜‡†—†‡”ƒ‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ„‘—•‹•‡š‡’–Ǥ
‘™‡˜‡”ǡ‡š‡’–‹‘™‘—Ž†‘–„‡ƒ˜ƒ‹Žƒ„Ž‡‹ˆ–Š‡’”‡‹—’ƒ›ƒ„Ž‡ˆ‘”ƒ›‘ˆ–Š‡›‡ƒ”•
†—”‹‰–Š‡–‡”‘ˆ–Š‡’‘Ž‹…›‡š…‡‡†•ͳͲΨ‘ˆDz‹‹—…ƒ’‹–ƒŽ•—ƒ••—”‡†dz—†‡”–Š‡
’‘Ž‹…›‘–Š‡Šƒ’’‡‹‰‘ˆ–Š‡‹•—”‡†‡˜‡–ƒ–ƒ›–‹‡†—”‹‰–Š‡–‡”‘ˆ–Š‡’‘Ž‹…›Ǥ

Notes:
ȋƒȌ ‘—–•‘––‘„‡…‘•‹†‡”‡†™Š‹Ž‡…‘’—–‹‰ƒ…–—ƒŽ…ƒ’‹–ƒŽ•—ƒ••—”‡†ǣ ‘”–Š‡’—”’‘•‡‘ˆ…ƒŽ…—Žƒ–‹‰–Š‡
ƒ…–—ƒŽ…ƒ’‹–ƒŽ•—ƒ••—”‡†ǡ
ȋͳȌ –Š‡˜ƒŽ—‡‘ˆƒ›’”‡‹—•ƒ‰”‡‡†–‘„‡”‡–—”‡†‘”
ȋʹȌ –Š‡˜ƒŽ—‡‘ˆƒ›„‡‡ϐ‹–„›™ƒ›‘ˆ„‘—•‘”‘–Š‡”™‹•‡ǡ‘˜‡”ƒ†ƒ„‘˜‡–Š‡•—ƒ…–—ƒŽŽ›ƒ••—”‡†ǡ
•ŠƒŽŽ‘–„‡–ƒ‡‹–‘ƒ……‘—–Ǥ
ȋ„Ȍ ‡ƒ‹‰‘ˆƒ…–—ƒŽ…ƒ’‹–ƒŽ•—ƒ••—”‡†ǣ”‡•’‡…–‘ˆ–Š‡Ž‹ˆ‡‹•—”ƒ…‡’‘Ž‹…‹‡•–‘„‡‹••—‡†‘‘”ƒˆ–‡”ͳ•–
’”‹ŽǡʹͲͳʹǡ–Š‡ƒ…–—ƒŽ…ƒ’‹–ƒŽ•—ƒ••—”‡†•ŠƒŽŽ‡ƒ–Š‡‹‹—ƒ‘—–ƒ••—”‡†—†‡”–Š‡’‘Ž‹…›‘
Šƒ’’‡‹‰‘ˆ–Š‡‹•—”‡†‡˜‡–ƒ–ƒ›–‹‡†—”‹‰–Š‡–‡”‘ˆ–Š‡’‘Ž‹…›ǡ‘––ƒ‹‰‹–‘ƒ……‘—–Ǧ
ȋͳȌ –Š‡˜ƒŽ—‡‘ˆƒ›’”‡‹—ƒ‰”‡‡†–‘„‡”‡–—”‡†Ǣ‘”
ȋʹȌ ƒ›„‡‡ϐ‹–„›™ƒ›‘ˆ„‘—•‘”‘–Š‡”™‹•‡‘˜‡”ƒ†ƒ„‘˜‡–Š‡•—ƒ…–—ƒŽŽ›ƒ••—”‡†™Š‹…Š‹•–‘„‡‘”
ƒ›„‡”‡…‡‹˜‡†—†‡”–Š‡’‘Ž‹…›„›ƒ›’‡”•‘Ǥ
 ‡ˆˆ‡…–ǡ‹…ƒ•‡–Š‡‹•—”ƒ…‡’‘Ž‹…›Šƒ•˜ƒ”‹‡†•—ƒ••—”‡††—”‹‰–Š‡–‡”‘ˆ’‘Ž‹…›–Š‡–Š‡‹‹—‘ˆ
–Š‡ •— ƒ••—”‡† †—”‹‰ –Š‡ Ž‹ˆ‡ –‹‡ ‘ˆ –Š‡ ’‘Ž‹…› •ŠƒŽŽ „‡ –ƒ‡ ‹–‘ …‘•‹†‡”ƒ–‹‘ ˆ‘” …ƒŽ…—Žƒ–‹‘ ‘ˆ –Š‡
Dzƒ…–—ƒŽ…ƒ’‹–ƒŽ•—ƒ••—”‡†dzǡ‹”‡•’‡…–‘ˆŽ‹ˆ‡‹•—”ƒ…‡’‘Ž‹…‹‡•–‘„‡‹••—‡†‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲͳʹǤ
 š‡’–‹‘‹•‘–ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆƒ‘—–”‡…‡‹˜‡†ˆ”‘ƒ‹•—”ƒ…‡’‘Ž‹…›–ƒ‡ˆ‘”†‹•ƒ„Ž‡†’‡”•‘
—†‡”•‡…–‹‘ͺͲǣ›•—”‡…‡‹˜‡†—†‡”•‡…–‹‘ͺͲȋ͵Ȍ•ŠƒŽŽ‘–„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋͳͲȌǤ
……‘”†‹‰Ž›ǡ‹ˆ–Š‡†‡’‡†‡–†‹•ƒ„Ž‡†ǡ‹”‡•’‡…–‘ˆ™Š‘ƒ‹†‹˜‹†—ƒŽŠƒ•’ƒ‹†‘”†‡’‘•‹–‡†ƒ›ƒ‘—–‹
ƒ›•…Š‡‡‘ˆ‘”ƒ›‘–Š‡”‹•—”‡”ǡ’”‡†‡…‡ƒ•‡•–Š‡‹†‹˜‹†—ƒŽǡ–Š‡ƒ‘—–•‘’ƒ‹†‘”†‡’‘•‹–‡†•ŠƒŽŽ„‡
†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽ‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–‹•”‡…‡‹˜‡†Ǥ—…Šƒ‘—–
™‘—Ž†‘–„‡‡š‡’–—†‡”ͳͲȋͳͲȌǤ
ȋ…Ȍ š‡’–‹‘‹•‘–ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡•—”‡…‡‹˜‡†—†‡”ƒ‡›ƒ‹•—”ƒ…‡’‘Ž‹…›ǣ›•—”‡…‡‹˜‡†
—†‡”ƒ‡›ƒ‹•—”ƒ…‡’‘Ž‹…›•ŠƒŽŽƒŽ•‘‘–„‡‡š‡’–Ǥ
 š’Žƒƒ–‹‘ͳ–‘•‡…–‹‘ͳͲȋͳͲȌ†‡ϐ‹‡•Dz‡›ƒ‹•—”ƒ…‡’‘Ž‹…›dzƒ•ƒŽ‹ˆ‡‹•—”ƒ…‡’‘Ž‹…›–ƒ‡„›‘‡
’‡”•‘‘–Š‡Ž‹ˆ‡‘ˆƒ‘–Š‡”’‡”•‘™Š‘‹•‘”™ƒ•–Š‡‡’Ž‘›‡‡‘ˆ–Š‡ϐ‹”•–Ǧ‡–‹‘‡†’‡”•‘‘”‹•‘”™ƒ•
…‘‡…–‡†‹ƒ›ƒ‡”™Šƒ–•‘‡˜‡”™‹–Š–Š‡„—•‹‡••‘ˆ–Š‡ϐ‹”•–Ǧ‡–‹‘‡†’‡”•‘ǤŠ‡–‡”‹…Ž—†‡•
™‹–Š‹‹–••…‘’‡ƒ‡›ƒ‹•—”ƒ…‡’‘Ž‹…›™Š‹…ŠŠƒ•„‡‡ƒ••‹‰‡†–‘ƒ›’‡”•‘†—”‹‰‹–•–‡”ǡ™‹–Š‘”
™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ǤŠ‡”‡ˆ‘”‡ǡ•—…Š’‘Ž‹…‹‡••ŠƒŽŽ…‘–‹—‡–‘„‡–”‡ƒ–‡†ƒ•ƒ‡›ƒ‹•—”ƒ…‡’‘Ž‹…›
‡˜‡ƒˆ–‡”–Š‡•ƒ‡‹•ƒ••‹‰‡†–‘–Š‡‡›ƒǤ‘•‡“—‡–Ž›ǡ–Š‡•—”‡…‡‹˜‡†„›–Š‡‡›ƒ‘•—…Š’‘Ž‹…‹‡•ǡ
„‡‹‰Dz‡›ƒ‹•—”ƒ…‡’‘Ž‹…‹‡•dzǡ™‘—Ž†‘–„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋͳͲȌǤ
 98 Lesson 3 Ȉ EP-TL

Payment from Provident Fund [Section 10(11)]

›’ƒ›‡–ˆ”‘ƒ’”‘˜‹†‡–ˆ—†–‘™Š‹…Š–Š‡”‘˜‹†‡– —†•…–ǡͳͻʹͷȋͳͻ‘ˆͳͻʹͷȌǡƒ’’Ž‹‡•‘”ˆ”‘ƒ›‘–Š‡”
’”‘˜‹†‡–ˆ—†•‡–—’„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ†‘–‹ϐ‹‡†„›‹–‹–Š‹•„‡ŠƒŽˆ‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡Ǥ
The provisions of these clauses shall not apply to the income by way of interest accrued during the previous year in the
account of a person to the extent it relates to the amount or the aggregate of amounts of contribution made by that
person exceeding 2.5 lakh rupees in any previous year in that fund, on or after the 1st day of April, 2021 and computed
in such manner as may be provided by rules. ȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡ͸Ͷ͸ͷȐ
Dzˆ‡’Ž‘›‡‡•ǯ…‘–”‹„—–‹‘–‘’”‘˜‹†‡–ˆ—†‘‘”ƒˆ–‡”ͷ’”‹Ž͸Ͷ͸ͷ‡š…‡‡†•ൈ͸ǤͻŽƒŠ‹ƒ››‡ƒ”ǡ‹–‡”‡•–‡ƒ”‡†‘
…‘–”‹„—–‹‘‘˜‡”ൈ͸ǤͻŽƒŠ•ŠƒŽŽ„‡–ƒšƒ„Ž‡Ǥ–ƒ›„‡‘–‡†–Šƒ––Š‡‡™’”‘˜‹•‹‘‘Ž›–ƒ‡•‹–‘ƒ……‘—–‡’Ž‘›‡‡•ǯ
contribution and not the total contribu–‹‘–‘–Š‡ˆ—††—”‹‰ƒ››‡ƒ”ǤŠ‹•™‹ŽŽŠƒ˜‡ƒŽ‹‹–‡†‹’ƒ…–•’‡…‹ϔ‹…ƒŽŽ›‘
the high-income salaried individuals.
‘™‡˜‡”ǡ–Š‡ƒ„‘˜‡Ž‹‹–‘ˆ†‡’‘•‹–‘ˆ•Ǥ͸ǤͻŽƒŠ•‹…”‡ƒ•‡†–‘ൈͻŽƒŠ’‡”ƒ—‹’”‘˜‹†‡–ˆ—†ˆ‘”™Š‹…Š‹–‡”‡•–
™‘—Ž†…‘–‹—‡–‘„‡–ƒšǦ‡š‡’–ǡ‹ˆ–Š‡”‡‹•‘‡’Ž‘›‡”…‘–”‹„—–‹‘Ǥ
Payment from account opened in accordance with the Sukanya Samriddhi Account Rules, 2014
[Section 10(11A)]
•’‡”•‡…–‹‘ͳͲȋͳͳȌǡƒ›’ƒ›‡–ˆ”‘ƒǣ
Ȉ ƒ……‘—–‘’‡‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡—ƒ›ƒƒ”‹††Š‹……‘—–—Ž‡•ǡʹͲͳͶƒ†‡—†‡”–Š‡
‘˜‡”‡–
ƒ˜‹‰•ƒ…–ǡͳͺ͹͵‹•‡š‡’–ˆ”‘–ƒšǤ
Ȉ ‘–Š‡”™‘”†•ǡ‹–‡”‡•–ƒ†™‹–Š†”ƒ™ƒŽ•ˆ”‘•—…Šƒ……‘—–™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš—†‡”•‡…–‹‘ͳͲȋͳͳȌǤ

Payment of Accumulated balance in a recognized Provident Fund [Section 10(12)]

Š‡ƒ……——Žƒ–‡†„ƒŽƒ…‡†—‡ƒ†„‡…‘‹‰’ƒ›ƒ„Ž‡–‘ƒ‡’Ž‘›‡‡’ƒ”–‹…‹’ƒ–‹‰‹ƒ”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†ǡ
–‘–Š‡‡š–‡–’”‘˜‹†‡†‹”—Ž‡ͺ‘ˆƒ”–‘ˆ–Š‡ ‘—”–Š…Š‡†—Ž‡Ǥ
The provisions of these clauses shall not apply to the income by way of interest accrued during the previous year in the
account of a person to the extent it relates to the amount or the aggregate of amounts of contribution made by that
person exceeding 2.5 lakh rupees in any previous year in that fund, on or after the 1st day of April, 2021 and computed
in such manner as may be provided by rules. ȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡ͸Ͷ͸ͷȐ
Dzˆ‡’Ž‘›‡‡•ǯ…‘–”‹„—–‹‘–‘’”‘˜‹†‡–ˆ—†‘‘”ƒˆ–‡”ͷ’”‹Ž͸Ͷ͸ͷ‡š…‡‡†•ൈ͸ǤͻŽƒŠ‹ƒ››‡ƒ”ǡ‹–‡”‡•–‡ƒ”‡†‘
…‘–”‹„—–‹‘‘˜‡”ൈ͸ǤͻŽƒŠ•ŠƒŽŽ„‡–ƒšƒ„Ž‡Ǥ–ƒ›„‡‘–‡†–Šƒ––Š‡‡™’”‘˜‹•‹‘‘Ž›–ƒ‡•‹–‘ƒ……‘—–‡’Ž‘›‡‡•ǯ
…‘–”‹„—–‹‘ƒ†‘––Š‡–‘–ƒŽ…‘–”‹„—–‹‘–‘–Š‡ˆ—††—”‹‰ƒ››‡ƒ”ǤŠ‹•™‹ŽŽŠƒ˜‡ƒŽ‹‹–‡†‹’ƒ…–•’‡…‹ϔ‹…ƒŽŽ›‘
the high-income salaried individuals.
‘™‡˜‡”ǡ–Š‡ƒ„‘˜‡Ž‹‹–‘ˆ†‡’‘•‹–‘ˆ•Ǥ͸ǤͻŽƒŠ•‹…”‡ƒ•‡†–‘ൈͻŽƒŠ’‡”ƒ—‹’”‘˜‹†‡–ˆ—†ˆ‘”™Š‹…Š‹–‡”‡•–
™‘—Ž†…‘–‹—‡–‘„‡–ƒšǦ‡š‡’–ǡ‹ˆ–Š‡”‡‹•‘‡’Ž‘›‡”…‘–”‹„—–‹‘Ǥ
Payment from the National Pension System Trust to an employee [Section 10(12A)]
›’ƒ›‡–ˆ”‘–Š‡ƒ–‹‘ƒŽ‡•‹‘›•–‡”—•––‘
Ȉ ƒƒ••‡••‡‡ȋ™‘”†ƒ••‡••‡‡‹••—„•–‹–—–‡†‹’Žƒ…‡‘ˆ‡’Ž‘›‡‡–‘‡š–‡†„‡‡ϐ‹––‘‘Ǧ‡’Ž‘›‡‡•Ȍ
Ȉ ‘…Ž‘•—”‡‘ˆƒ……‘—–‘”Š‹•‘’–‹‰‘—–‘ˆ–Š‡’‡•‹‘•…Š‡‡”‡ˆ‡””‡†–‘‹•‡…–‹‘ͺͲǡ
Ȉ –‘–Š‡‡š–‡–‹–†‘‡•‘–‡š…‡‡†͸ͲΨ‘ˆ–Š‡–‘–ƒŽƒ‘—–’ƒ›ƒ„Ž‡–‘Š‹ƒ––Š‡–‹‡‘ˆ…Ž‘•—”‡‘”
Ȉ Š‹•‘’–‹‰‘—–‘ˆ–Š‡•…Š‡‡ǡ
‹•‡š‡’–ˆ”‘–ƒšǤ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 99

Partial withdrawal from NPS [Section 10(12B)]

‘’”‘˜‹†‡”‡Ž‹‡ˆ–‘ƒ‡’Ž‘›‡‡™‹–Š†”ƒ™‹‰’ƒ”–‹ƒŽƒ‘—–ˆ”‘ƒ–‹‘ƒŽ‡•‹‘›•–‡ȋȌ”—•–Ǥ‡™
…Žƒ—•‡ȋͳʹȌ‹•‹•‡”–‡†—†‡”•‡…–‹‘ͳͲ™‹–Š‡ˆˆ‡…–ˆ”‘ƒ••‡••‡–›‡ƒ”ʹͲͳͺǦͳͻ–‘’”‘˜‹†‡–Šƒ––Š‡™‹–Š†”ƒ™ƒŽ
ˆ”‘™‹ŽŽ‘–„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣǦ

‘—–‘ˆ™‹–Š†”ƒ™ƒŽ•Š‘—Ž†‘–‡š…‡‡†ʹͷΨ‘ˆ–‘–ƒŽ
…‘–”‹„—–‹‘ƒ†‡„›ƒ‡’Ž‘›‡‡‹Ǥ
NPS withdrawal shall
not chargeable to tax if
ƒ”–‹ƒŽ™‹–Š†”ƒ™ƒŽ•Š‘—Ž†„‡ƒ†‡‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡‡•‹‘ —†‡‰—Žƒ–‘”›ƒ†‡˜‡Ž‘’‡–—–Š‘”‹–›
…–ǡʹͲͳ͵ƒ†–Š‡”‡‰—Žƒ–‹‘•ƒ†‡–Š‡”‡—†‡”Ǥ

ƒ›‡– ˆ”‘ ƒ’’”‘˜‡† •—’‡”ƒ—ƒ–‹‘ ˆ—† ‹ •’‡…‹ϐ‹‡† …‹”…—•–ƒ…‡• ƒ† •—„Œ‡…– –‘ …‡”–ƒ‹ Ž‹‹–•
[Section 10(13)]

’’”‘˜‡†•—’‡”ƒ—ƒ–‹‘ˆ—†‡ƒ••—’‡”ƒ—ƒ–‹‘ˆ—†™Š‹…Š‹•ƒ’’”‘˜‡†„›–Š‡‘‹••‹‘‡”‘ˆ…‘‡Ǧ
–ƒšǤƒš–”‡ƒ–‡–‘ˆ•—…Šˆ—†‹•ƒ•ˆ‘ŽŽ‘™•ǣ
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘‹•‡š‡’–ˆ”‘–ƒšǡŠ‘™‡˜‡”ǡˆ”‘ƒ••‡••‡–›‡ƒ”ʹͲͳͲǦͳͳ‡’Ž‘›‡”ǯ•…‘–”‹„—–‹‘‹
‡š…‡••‘ˆ•ǤͳǡͷͲǡͲͲͲ’‡”ƒ—‹•…Šƒ”‰‡†–‘–ƒšƒ•’‡”“—‹•‹–‡Ǥ’Ž‘›‡‡ǯ•…‘–”‹„—–‹‘“—ƒŽ‹ϐ‹‡•ˆ‘”†‡†—…–‹‘
—†‡”•‡…–‹‘ͺͲƒ†‹–‡”‡•–‘ƒ……——Žƒ–‡†„ƒŽƒ…‡‹•‘–Ž‹ƒ„Ž‡–‘–ƒšǤ
ƒ›‡–•ƒ†‡ˆ”‘–Š‡ˆ—†ƒ”‡‡š‡’–ˆ”‘–ƒš—†‡”•‡…–‹‘ͳͲȋͳ͵Ȍ‹ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
9 ƒ›‡–‘†‡ƒ–Š‘ˆ„‡‡ϐ‹…‹ƒ”›Ǣ‘”
9 ƒ›‡––‘‡’Ž‘›‡‡‹Ž‹‡—‘ˆǡ‘”‹…‘—–ƒ–‹‘‘ˆƒƒ—‹–›‘Š‹•”‡–‹”‡‡–ƒ–‘”ƒˆ–‡”–Š‡•’‡…‹ϐ‹‡†ƒ‰‡
‘”‘Š‹•„‡…‘‹‰‹…ƒ’ƒ„Ž‡’”‹‘”–‘•—…Š”‡–‹”‡‡–Ǣ‘”
9 ƒ›‡–„›™ƒ›‘ˆ”‡ˆ—†‘ˆ…‘–”‹„—–‹‘•‘–Š‡†‡ƒ–Š‘ˆƒ„‡‡ϐ‹…‹ƒ”›Ǣ‘”
9 ƒ›‡––‘‡’Ž‘›‡‡„›™ƒ›‘ˆ”‡ˆ—†‘ˆŠ‹•…‘–”‹„—–‹‘•‘Ž‡ƒ˜‹‰–Š‡•‡”˜‹…‡‹…‘‡…–‹‘™‹–Š™Š‹…Š
–Š‡ˆ—†‹•‡•–ƒ„Ž‹•Š‡†‘–Š‡”™‹•‡–Šƒ„›”‡–‹”‡‡–ƒ–‘”ƒˆ–‡”ƒ•’‡…‹ϐ‹‡†ƒ‰‡‘”‘Š‹•„‡…‘‹‰‹…ƒ’ƒ…‹–ƒ–‡†
’”‹‘”–‘•—…Š”‡–‹”‡‡–Ǣ‘”ƒ›‡––‘‡’Ž‘›‡‡„›™ƒ›‘ˆ–”ƒ•ˆ‡”–‘Š‹•ƒ……‘—–—†‡”ƒ’‡•‹‘•…Š‡‡
”‡ˆ‡””‡†–‘‹•‡…–‹‘ͺͲǤ

Allowances for meeting business expenditure [Section 10(14)]

‹•…—••‡†‹‡••‘‘ǤͶȏ…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”›Ȑ
Interest Incomes [Section 10(15)]
–‡”‡•–ǡ‡†‡’–‹‘”‡‹—ǡ‘‘–‹ϐ‹‡†•‡…—”‹–‹‡•ǡ„‘†•ǡ…‡”–‹ϐ‹…ƒ–‡‘ˆ†‡’‘•‹–•‡–…Ǥǡƒ”‡‡š‡’–ˆ‘”ƒŽŽƒ••‡••‡‡•Ǥ
Educational Scholarship [Section 10(16)]
›ƒ‘—–”‡…‡‹˜‡†ƒ•‡†—…ƒ–‹‘ƒŽ•…Š‘Žƒ”•Š‹’ȋ‹Ǥ‡Ǥǡ•…Š‘Žƒ”•Š‹’–‘‡‡––Š‡…‘•–‘ˆ‡†—…ƒ–‹‘Ȍ‹•‡š‡’–ˆ”‘–ƒš
‹–Š‡Šƒ†•‘ˆ”‡…‹’‹‡–Ǥ
 100 Lesson 3 Ȉ EP-TL

Daily allowance to a Member of Parliament [Section 10(17)]

ƒ‹Ž›ƒŽŽ‘™ƒ…‡ ›‘–Š‡” ›‘•–‹–—‡…›

ƒŽŽ‘™ƒ…‡ ŽŽ‘™ƒ…‡

”‡…‡‹˜‡†„›ƒ‡„‡”
‘ˆƒ”Ž‹ƒ‡–‘”„›ƒ
‡„‡”‘ˆ–ƒ–‡
‡‰‹•Žƒ–—”‡‘”„›
‡„‡”‘ˆƒ›
…‘‹––‡‡–Š‡”‡‘ˆ
”‡…‡‹˜‡†„›ƒ‡„‡”‘ˆ
ƒ”Ž‹ƒ‡–—†‡”–Š‡
‡„‡”•‘ˆƒ”Ž‹ƒ‡–
”‡…‡‹˜‡†„›ƒ
ȋ‘•–‹–—‡…›
‡„‡”‘ˆ–ƒ–‡
ŽŽ‘™ƒ…‡Ȍ—Ž‡•ǡͳͻͺ͸
‡‰‹•Žƒ–—”‡

Are exempt from tax in the hands of a Member of Parliament

and a Member of State Legislature

Awards [Section 10(17A)]

›’ƒ›‡–”‡…‡‹˜‡†‹’—”•—ƒ…‡‘ˆˆ‘ŽŽ‘™‹‰ȋ™Š‡–Š‡”’ƒ‹†‹…ƒ•Š‘”‹‹†Ȍ‹•‡š‡’–ˆ”‘–ƒšǣ

Payment
received shall
be exempt from
tax if it is
related to
›ƒ™ƒ”†
‹•–‹–—–‡†‹–Š‡
›”‡™ƒ”†
’—„Ž‹…‹–‡”‡•–

›–Š‡‡–”ƒŽ „›–Š‡‡–”ƒŽ

‘˜‡”‡–‘”–ƒ–‡
‘˜‡”‡–‘”ƒ›

‘˜‡”‡–‘”„› –ƒ–‡
‘˜‡”‡–ˆ‘”
ƒ›‘–Š‡”„‘†› —…Š’—”’‘•‡ƒ•ƒ›
ƒ’’”‘˜‡†„›–Š‡ „‡ƒ’’”‘˜‡†„›–Š‡
‡–”ƒŽ
‘˜‡”‡– ‡–”ƒŽ
‘˜‡”‡–
‹–Š‹•„‡ŠƒŽˆ ‹–Š‹•„‡ŠƒŽˆ‹–Š‡
’—„Ž‹…‹–‡”‡•–Ǥ

Pension to gallantry award winner [Section 10(18)]

‡•‹‘”‡…‡‹˜‡†„›ƒ
Ȉ ‹†‹˜‹†—ƒŽ™Š‘™ƒ•‡’Ž‘›‡‡‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‘”–ƒ–‡
‘˜‡”‡–ƒ†
Ȉ ™Š‘Šƒ•„‡‡ƒ™ƒ”†‡†ƒ”ƒ‹”Šƒ”ƒ‘”ƒŠƒ‹”Šƒ”ƒ‘”‹”Šƒ”ƒ‘”ƒ›‘–Š‡”‘–‹ϐ‹‡†‰ƒŽŽƒ–”›
ƒ™ƒ”†‹•‡š‡’–ˆ”‘–ƒšǤ

…ƒ•‡‘ˆ†‡ƒ–Š‘ˆ•—…Š‹†‹˜‹†—ƒŽǡƒ›‹…‘‡„›™ƒ›‘ˆ ƒ‹Ž›’‡•‹‘”‡…‡‹˜‡†„›ƒ›‡„‡”‘ˆ–Š‡ˆƒ‹Ž›ȗȗ‘ˆ
•—…Š‹†‹˜‹†—ƒŽ‹•ƒŽ•‘‡š‡’–Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 101

**Meaning of Family:
ƒ‹Ž›ǡ‹”‡Žƒ–‹‘–‘ƒ‹†‹˜‹†—ƒŽǡ‡ƒ•Ȃ
Ȉ Š‡•’‘—•‡ƒ†…Š‹Ž†”‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǢƒ†
Ȉ Š‡’ƒ”‡–•ǡ„”‘–Š‡”•ƒ†•‹•–‡”•‘ˆ–Š‡‹†‹˜‹†—ƒŽ•‘”ƒ›‘ˆ–Š‡ǡ™Š‘ŽŽ›‘”ƒ‹Ž›†‡’‡†‡–‘–Š‡‹†‹˜‹†—ƒŽǤ

Family pension received by the family members of armed forces [Section 10(19)]
”‘ –Š‡ ƒ••‡••‡– ›‡ƒ” ʹͲͲͷǦͲ͸ǡ ˆƒ‹Ž› ’‡•‹‘ ”‡…‡‹˜‡† „› –Š‡ ™‹†‘™ ‘” …Š‹Ž†”‡ ‘” ‘‹ƒ–‡† Š‡‹”•ǡ ‘ˆ ƒ
‡„‡”‘ˆƒ”‡†ˆ‘”…‡•ȋ‹…Ž—†‹‰’ƒ”ƒ‹Ž‹–ƒ”›ˆ‘”…‡•Ȍ‘ˆ–Š‡‹‘ǡ‹•‡š‡’–ˆ”‘–ƒš‹–Š‡Šƒ†•‘ˆ•—…Šˆƒ‹Ž›
‡„‡”•ǡ‹ˆ–Š‡†‡ƒ–Š‘ˆ•—…Š‡„‡”‘ˆƒ”‡†ˆ‘”…‡•Šƒ•‘……—””‡†‹–Š‡…‘—”•‡‘ˆ‘’‡”ƒ–‹‘ƒŽ†—–›‹’”‡•…”‹„‡†
…‹”…—•–ƒ…‡•ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Exemption of disability pension granted to disabled personnel of armed forces who have been invalided on
account of disability attributable to or aggravated by such service [Circular No. 13/2019, dated 24.6.2019]
Š‡ ‡–‹”‡ †‹•ƒ„‹Ž‹–› ’‡•‹‘ǡ ‹Ǥ‡Ǥǡ Dz†‹•ƒ„‹Ž‹–› ‡Ž‡‡–dz ƒ† Dz•‡”˜‹…‡ ‡Ž‡‡–dz ‘ˆ ’‡•‹‘ ‰”ƒ–‡† –‘ ‡„‡”• ‘ˆ
ƒ˜ƒŽǡ‹Ž‹–ƒ”›‘”ƒ‹”ˆ‘”…‡•™Š‘Šƒ˜‡„‡‡‹˜ƒŽ‹†‡†‘—–‘ˆƒ˜ƒŽǡ‹Ž‹–ƒ”›‘”ƒ‹”ˆ‘”…‡•‡”˜‹…‡‘ƒ……‘—–‘ˆ„‘†‹Ž›
†‹•ƒ„‹Ž‹–›ƒ––”‹„—–ƒ„Ž‡–‘‘”ƒ‰‰”ƒ˜ƒ–‡†„›•—…Š•‡”˜‹…‡™‘—Ž†„‡‡š‡’–ˆ”‘–ƒšǤ
Š‡Šƒ•ǡ˜‹†‡–Š‹•…‹”…—Žƒ”ǡ…Žƒ”‹ϐ‹‡†–Šƒ–‡š‡’–‹‘‹”‡•’‡…–‘ˆ†‹•ƒ„‹Ž‹–›’‡•‹‘™‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ
ƒ”‡†ˆ‘”…‡•’‡”•‘‡Žȋ‹””‡•’‡…–‹˜‡‘ˆ”ƒȌ™Š‘Šƒ˜‡„‡‡‹˜ƒŽ‹†‡†‘—–‘ˆ•—…Š•‡”˜‹…‡‘ƒ……‘—–‘ˆ„‘†‹Ž›
†‹•ƒ„‹Ž‹–›ƒ––”‹„—–ƒ„Ž‡–‘‘”ƒ‰‰”ƒ˜ƒ–‡†„›•—…Š•‡”˜‹…‡Ǥ‘™‡˜‡”ǡ•—…Š–ƒš‡š‡’–‹‘™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›–‘ƒ”‡†
ˆ‘”…‡•’‡”•‘‡Ž™Š‘Šƒ˜‡„‡‡‹˜ƒŽ‹†‡†‘—–‘ˆ•‡”˜‹…‡‘ƒ……‘—–‘ˆ„‘†‹Ž›†‹•ƒ„‹Ž‹–›ƒ––”‹„—–ƒ„Ž‡–‘‘”ƒ‰‰”ƒ˜ƒ–‡†
„›•—…Š•‡”˜‹…‡ƒ†‘––‘’‡”•‘‡Ž™Š‘Šƒ˜‡„‡‡”‡–‹”‡†‘•—’‡”ƒ—ƒ–‹‘‘”‘–Š‡”™‹•‡Ǥ
Income of a News Agency [Section 10(22B)]
›‹…‘‡‘ˆƒ‘–‹ϐ‹‡†‡™•ƒ‰‡…›ǡ•‡–Ǧ—’‹†‹ƒ•‘Ž‡Ž›ˆ‘”…‘ŽŽ‡…–‹‘ƒ††‹•–”‹„—–‹‘‘ˆ‡™•‹•‡š‡’–ˆ”‘
–ƒš ’”‘˜‹†‡† –Šƒ– –Š‡ ‡™• ƒ‰‡…› ƒ’’Ž‹‡• ‹–• ‹…‘‡ ‘” ƒ……——Žƒ–‡• ‹– ˆ‘” ƒ’’Ž‹…ƒ–‹‘ •‘Ž‡Ž› ˆ‘” …‘ŽŽ‡…–‹‘ ƒ†
†‹•–”‹„—–‹‘‘ˆ‡™•ƒ††‘‡•‘–†‹•–”‹„—–‡‹–•‹…‘‡‹ƒ›ƒ‡”–‘‹–•‡„‡”•Ǥ
Income of a Professional Association [Section 10(23A)]
›‹…‘‡ȋ‘–Š‡”–Šƒ‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ƒ†‹…‘‡ˆ”‘”‡†‡”‹‰ƒ›•’‡…‹ϐ‹…•‡”˜‹…‡‘”‹…‘‡„›
™ƒ› ‘ˆ ‹–‡”‡•– ‘” †‹˜‹†‡† ‘ ‹˜‡•–‡–Ȍ ‘ˆ ƒ ’”‘ˆ‡••‹‘ƒŽ ‹•–‹–—–‹‘Ȁƒ••‘…‹ƒ–‹‘ ‹• ‡š‡’– ˆ”‘ –ƒšǡ ‹ˆ –Š‡
ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
 102 Lesson 3 Ȉ EP-TL

Income received on behalf of Regimental Fund [Section 10(23AA)]

›‹…‘‡”‡…‡‹˜‡†„›ƒ›’‡”•‘‘„‡ŠƒŽˆ‘ˆƒ›‡‰‹‡–ƒŽ —†‘”‘Ǧ—„Ž‹… —†‡•–ƒ„Ž‹•Š‡†„›–Š‡ƒ”‡†
ˆ‘”…‡•‘ˆ–Š‡‹‘ˆ‘”–Š‡™‡Žˆƒ”‡‘ˆ–Š‡’ƒ•–ƒ†’”‡•‡–‡„‡”•‘ˆ•—…Šˆ‘”…‡•‘”–Š‡‹”†‡’‡†‡–•ǡ‹•‡š‡’–
ˆ”‘–ƒšǤ
Income of a fund established for welfare of employees [Section 10(23AAA)]
›‹…‘‡”‡…‡‹˜‡†„›ƒ›’‡”•‘‘„‡ŠƒŽˆ‘ˆƒˆ—†‡•–ƒ„Ž‹•Š‡†ǡˆ‘”•—…Š’—”’‘•‡ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘ƒ”†‹ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡˆ‘”–Š‡™‡Žˆƒ”‡‘ˆ‡’Ž‘›‡‡•‘”–Š‡‹”†‡’‡†‡–•ƒ†‘ˆ™Š‹…Šˆ—†•—…Š‡’Ž‘›‡‡•ƒ”‡
‡„‡”•ǡ‹•‡š‡’–ˆ”‘–ƒšǡ‹ˆ•—…Šˆ—†ƒ’’Ž‹‡•‘”ƒ……——Žƒ–‡•‹–•‹…‘‡ˆ‘”‡š…Ž—•‹˜‡ƒ’’Ž‹…ƒ–‹‘–‘™ƒ”†•‹–•
‘„Œ‡…–•ǡ ‹˜‡•–• ‹–• ˆ—†• ‹ –Š‡ ‘†‡• •’‡…‹ϐ‹‡† ‹ •‡…–‹‘ ͳͳȋͷȌ ƒ† •—…Š ˆ—† ‹• ƒ’’”‘˜‡† „› –Š‡ ”‹…‹’ƒŽ
‘‹••‹‘‡”‘”‘‹••‹‘‡”‹ƒ……‘”†ƒ…‡™‹–Š”—Ž‡ƒ†‡‹–Š‹•„‡ŠƒŽˆȋ•‡‡”—Ž‡ͳ͸ƒ† ‘”‘ǤͻȌǤ
Income of pension fund [Section 10(23AAB)]
›‹…‘‡‘ˆƒˆ—†•‡–Ǧ—’„›–Š‡‹ˆ‡•—”ƒ…‡‘”’‘”ƒ–‹‘‘ˆ†‹ƒ‘‘”ƒˆ–‡”—‰—•–ͳǡͳͻͻ͸‘”ƒ›‘–Š‡”
‹•—”‡”–‘™Š‹…Š…‘–”‹„—–‹‘‹•ƒ†‡„›ƒ›’‡”•‘ˆ‘””‡…‡‹˜‹‰’‡•‹‘ˆ”‘•—…Šˆ—†ǡƒ†™Š‹…Š‹•ƒ’’”‘˜‡†
„›–Š‡‘–”‘ŽŽ‡”‘ˆ•—”ƒ…‡‘”–Š‡•—”ƒ…‡‡‰—Žƒ–‘”›ƒ†‡˜‡Ž‘’‡–—–Š‘”‹–›ǡ‹•‡š‡’–ˆ”‘–ƒšǤ
Income from Khadi or village industry [Section 10(23B)]
…‘‡‘ˆƒ‹•–‹–—–‹‘…‘•–‹–—–‡†ƒ•ƒ’—„Ž‹……Šƒ”‹–ƒ„Ž‡–”—•–‘”•‘…‹‡–›™Š‹…Š‹•‡•–ƒ„Ž‹•Š‡†ˆ‘”–Š‡†‡˜‡Ž‘’‡–
‘ˆŠƒ†‹ƒ†˜‹ŽŽƒ‰‡‹†—•–”‹‡•ȋ‘–ˆ‘”’”‘ϐ‹–’—”’‘•‡Ȍ‹•‡š‡’–ˆ”‘–ƒšǡ‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†
ͳȌ …‘‡ ‹• ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ „—•‹‡•• ‘ˆ ’”‘†—…–‹‘ǡ •ƒŽ‡ǡ ‘” ƒ”‡–‹‰ǡ ‘ˆ Šƒ†‹ ‘” ’”‘†—…–• ‘ˆ ˜‹ŽŽƒ‰‡
‹†—•–”‹‡•Ǥ
ʹȌ •–‹–—–‹‘ƒ’’Ž‹‡•‹–•‹…‘‡ǡ‘”ƒ……——Žƒ–‡•‹–ˆ‘”ƒ’’Ž‹…ƒ–‹‘ǡ•‘Ž‡Ž›ˆ‘”–Š‡†‡˜‡Ž‘’‡–‘ˆŠƒ†‹‘”˜‹ŽŽƒ‰‡
‹†—•–”‹‡•‘”„‘–Š
͵Ȍ •–‹–—–‹‘‹•ƒ’’”‘˜‡†„›–Š‡Šƒ†‹ƒ†‹ŽŽƒ‰‡†—•–”‹‡•‘‹••‹‘Ǥ

Income from fund or trust or institution or university or other educational institution or hospital or
other Medical Institution [Section 10(23C)
› ‹…‘‡ ”‡…‡‹˜‡† „› ƒ› ’‡”•‘ ‘ „‡ŠƒŽˆ ‘ˆ ˆ—† ‘” –”—•– ‘” ‹•–‹–—–‹‘ ‘” —‹˜‡”•‹–› ‘” ‘–Š‡” ‡†—…ƒ–‹‘ƒŽ
‹•–‹–—–‹‘ ‘” Š‘•’‹–ƒŽ ‘” ‘–Š‡” ‡†‹…ƒŽ ‹•–‹–—–‹‘ •’‡…‹ϐ‹‡† ‹ ‡…–‹‘ ͳͲȋʹ͵Ȍ ‘ˆ –Š‡ …‘‡ ƒš …–ǡ ͳͻ͸ͳ ‹•
‡š‡’–ˆ”‘–ƒš•—„Œ‡…––‘…‡”–ƒ‹…‘†‹–‹‘Ǥ

CASE LAW
‡”‡Ž›„‡…ƒ—•‡•—”’Ž—•‡ƒ”ned by assessee educational institution was invested for expansion of school
building, it could not be held that assessee did not exist solely for educational purpose so as to deny
ƒ••‡••‡‡‡š‡’–‹‘—†‡”•‡…–‹‘ͷͶȋ͸͹Ȍȋ˜‹Ȍ‘ˆ–Š‡…‘‡–ƒš…–ǡͷͿͼͷȏˆƒ˜‘—”‘ˆƒ••‡••‡Ȑ
ƒŽŽ‹ƒ”Œ—…Š‘‘Ž‘…‹‡–› v. Š‹‡ˆȏ͸Ͷͷ;Ȑȋ––ƒ”ƒŠƒ†Ȍ
Š‡ƒ••‡•‡‡ǡ‡†—…ƒ–‹‘ƒŽ•‘…‹‡–›ǡƒ’’Ž‹‡†ˆ‘”‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋʹ͵Ȍȋ˜‹Ȍ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
š‡’–‹‘™ƒ•†‡‹‡†–‘–Š‡ƒ••‡••‡‡‘‰”‘—†•–Šƒ–•—”’Ž—•‘ˆ•‘…‹‡–›™ƒ•—–‹Ž‹œ‡†ˆ‘”‡š’ƒ•‹‘Ȁƒ††‹–‹‘
‘ˆ•…Š‘‘Ž„—‹Ž†‹‰ǡ–Š—•ǡ‹–†‹†‘–ƒ’’Ž›‹–•ˆ—†•ˆ‘”’—”’‘•‡‘ˆ‡†—…ƒ–‹‘Ǥ
‡Ž† –Šƒ– ‹– ™ƒ• ‘–‡† –Šƒ– ƒ‹ ’—”’‘•‡ǡ ƒ‹ ƒ† ‘„Œ‡…–ǡ ƒ• •–ƒ–‡† ‹ ‡‘”ƒ†— ‘ˆ ••‘…‹ƒ–‹‘ ‘ˆ –Š‡
ƒ••‡••‡‡ǡ™ƒ•–‘‹’ƒ”–‡†—…ƒ–‹‘ƒŽ‘‰™‹–Šƒ…‹ŽŽƒ”›‘„Œ‡…–•Ǥ‡”‡Ž›„‡…ƒ—•‡•—”’Ž—•‡ƒ”‡†„›–Š‡ƒ••‡••‡
‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘™ƒ•—•‡†ˆ‘”‡š’ƒ•‹‘‘ˆ•…Š‘‘Ž„—‹Ž†‹‰‡–…Ǥ‹–…‘—Ž†‘–„‡Š‡Ž†–Šƒ––Š‡ƒ••‡••‡‡†‹†
‘–‡š‹•–•‘Ž‡Ž›ˆ‘”‡†—…ƒ–‹‘ƒŽ’—”’‘•‡ǤŠ—•ǡ–Š‡ƒ••‡••‡‡™ƒ•–‘„‡ƒŽŽ‘™‡†‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋʹ͵Ȍ
ȋ˜‹Ȍ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 103

Income of Mutual Fund [Section 10(23D)]

›‹…‘‡‘ˆˆ‘ŽŽ‘™‹‰—–—ƒŽˆ—†•ȋ•—„Œ‡…––‘’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•ͳͳͷ–‘ͳͳͷȌ‹•‡š‡’–ˆ”‘–ƒšǣ

…‘‡‘ˆ‘–‹ϐ‹‡†‹˜‡•–‘”’”‘–‡…–‹‘ˆ—†ȏ‡…–‹‘ͳͲȋʹ͵ȌȐ
› ‹…‘‡ „› ™ƒ› ‘ˆ …‘–”‹„—–‹‘• ”‡…‡‹˜‡† ˆ”‘ ”‡…‘‰‹•‡† •–‘… ‡š…Šƒ‰‡• ƒ† –Š‡ ‡„‡”• –Š‡”‡‘ˆǡ ‘ˆ ƒ
‘–‹ϐ‹‡†˜‡•–‘””‘–‡…–‹‘ —†•‡–—’„›”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡•‹†‹ƒ‹•‡š‡’–ˆ”‘–ƒšǤ”‘˜‹†‡†–Šƒ–
™Š‡”‡ƒ›ƒ‘—–•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ–Š‡ —†ƒ†‘–…Šƒ”‰‡†–‘‹…‘‡Ǧ–ƒš†—”‹‰ƒ›’”‡˜‹‘—•›‡ƒ”‹•
•Šƒ”‡†ǡ ‡‹–Š‡” ™Š‘ŽŽ› ‘” ‹ ’ƒ”–ǡ ™‹–Š ƒ ”‡…‘‰‹•‡† •–‘… ‡š…Šƒ‰‡ǡ –Š‡ ™Š‘Ž‡ ‘ˆ –Š‡ ƒ‘—– •‘ •Šƒ”‡† •ŠƒŽŽ „‡
†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–‹••‘•Šƒ”‡†ƒ†•ŠƒŽŽƒ……‘”†‹‰Ž›„‡…Šƒ”‰‡ƒ„Ž‡
–‘‹…‘‡Ǧ–ƒšǤ
…‘‡‘ˆ–Š‡‘–‹ϐ‹‡†‹˜‡•–‘”’”‘–‡…–‹‘ˆ—†•‡–Ǧ—’„›…‘‘†‹–›‡š…Šƒ‰‡ȏ‡…–‹‘ͳͲȋʹ͵ȌȐ
›‹…‘‡„›™ƒ›‘ˆ…‘–”‹„—–‹‘•”‡…‡‹˜‡†ˆ”‘…‘‘†‹–›‡š…Šƒ‰‡•ƒ†–Š‡‡„‡”•–Š‡”‡‘ˆǡ‘ˆƒ‘–‹ϐ‹‡†
˜‡•–‘””‘–‡…–‹‘ —†•‡–—’„›…‘‘†‹–›‡š…Šƒ‰‡•‹†‹ƒ‹•‡š‡’–ˆ”‘–ƒšǤ ”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ›
ƒ‘—–•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ–Š‡ —†ƒ†‘–…Šƒ”‰‡†–‘‹…‘‡Ǧ–ƒš†—”‹‰ƒ›’”‡˜‹‘—•›‡ƒ”‹••Šƒ”‡†ǡ‡‹–Š‡”
™Š‘ŽŽ›‘”‹’ƒ”–ǡ™‹–Šƒ…‘‘†‹–›‡š…Šƒ‰‡ǡ–Š‡™Š‘Ž‡‘ˆ–Š‡ƒ‘—–•‘•Šƒ”‡†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡
‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–‹••‘•Šƒ”‡†ƒ†•ŠƒŽŽƒ……‘”†‹‰Ž›„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšǤ
Income of Investor Protection Fund set by a depository [Section 10(23ED)]
›‹…‘‡ǡ„›™ƒ›‘ˆ…‘–”‹„—–‹‘•”‡…‡‹˜‡†ˆ”‘ƒ†‡’‘•‹–‘”›ǡ‘ˆ‘–‹ϐ‹‡†˜‡•–‘””‘–‡…–‹‘ —†•‡–—’„›ƒ
†‡’‘•‹–‘”›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”‡‰—Žƒ–‹‘•ƒ†‡—†‡”–Š‡…–ƒ†‡’‘•‹–‘”›…–‹•‡š‡’–ˆ”‘–ƒšǤ
”‘˜‹†‡† –Šƒ– ™Š‡”‡ ƒ› ƒ‘—– •–ƒ†‹‰ –‘ –Š‡ …”‡†‹– ‘ˆ –Š‡ —† ƒ† ‘– …Šƒ”‰‡† –‘ ‹…‘‡Ǧ–ƒš †—”‹‰ ƒ›
’”‡˜‹‘—• ›‡ƒ” ‹• •Šƒ”‡†ǡ ‡‹–Š‡” ™Š‘ŽŽ› ‘” ‹ ’ƒ”– ™‹–Š ƒ †‡’‘•‹–‘”›ǡ –Š‡ ™Š‘Ž‡ ‘ˆ –Š‡ ƒ‘—– •‘ •Šƒ”‡† •ŠƒŽŽ „‡
†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–‹••‘•Šƒ”‡†ƒ†•ŠƒŽŽǡƒ……‘”†‹‰Ž›ǡ„‡…Šƒ”‰‡ƒ„Ž‡
–‘‹…‘‡Ǧ–ƒšǤ
Income of a venture capital fund or a venture capital company from investment in a venture capital
undertaking [Section 10(23FB)]
…‘‡‘ˆƒ˜‡–—”‡…ƒ’‹–ƒŽˆ—†‘”ƒ˜‡–—”‡…ƒ’‹–ƒŽ…‘’ƒ›ˆ”‘‹˜‡•–‡–‹ƒ˜‡–—”‡…ƒ’‹–ƒŽ—†‡”–ƒ‹‰‹•
‡š‡’–ˆ”‘–ƒšˆ”‘ƒ••‡••‡–›‡ƒ”ʹͲͲͳǦͲʹǤ‘™‡˜‡”ǡ–Š‹•‡š‡’–‹‘‹••—„Œ‡…––‘•ƒ–‹•ˆƒ…–‹‘‘ˆ…‘†‹–‹‘•
•’‡…‹ϐ‹‡†‹•‡…–‹‘ͳͲȋʹ͵ ȌǤŠ‡•‡’”‘˜‹•‹‘••ŠƒŽŽ‘–ƒ’’Ž›‹”‡•’‡…–‘ˆƒ›‹…‘‡‘ˆƒ˜‡–—”‡…ƒ’‹–ƒŽ…‘’ƒ›
‘”˜‡–—”‡…ƒ’‹–ƒŽˆ—†ǡ„‡‹‰ƒ‹˜‡•–‡–ˆ—†•’‡…‹ϐ‹‡†‹…Žƒ—•‡ȋƒȌ‘ˆ–Š‡š’Žƒƒ–‹‘ͳ–‘•‡…–‹‘ͳͳͷǡ‘ˆ
–Š‡’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳ͸Ǥ
Income of an investment fund [Section 10(23FBA)]
›‹…‘‡‘ˆƒ‹˜‡•–‡–ˆ—†‘–Š‡”–Šƒ–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••
‘”’”‘ˆ‡••‹‘dz‹•‡š‡’–—†‡”‡…–‹‘ͳͲȋʹ͵ ȌǤDz˜‡•–‡–ˆ—†dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹
…Žƒ—•‡ ȋƒȌ ‘ˆ –Š‡ š’Žƒƒ–‹‘ ͳ –‘ •‡…–‹‘ ͳͳͷǤ …‘‡ ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͳͳͷ ‘ˆ ƒ —‹– Š‘Ž†‡” ‘ˆ ƒ
 104 Lesson 3 Ȉ EP-TL

‹˜‡•–‡– ˆ—† ȏ‡…–‹‘ ͳͲȋʹ͵ ȌȐ › ‹…‘‡ ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͳͳͷǡ ƒ……”—‹‰ ‘” ƒ”‹•‹‰ –‘ǡ ‘”
”‡…‡‹˜‡†„›ǡƒ—‹–Š‘Ž†‡”‘ˆƒ‹˜‡•–‡–ˆ—†ǡ„‡‹‰–Šƒ–’”‘’‘”–‹‘‘ˆ‹…‘‡ǡ™Š‹…Š‹•‘ˆ–Š‡•ƒ‡ƒ–—”‡
ƒ• ‹…‘‡ …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† Dz”‘ˆ‹–• ƒ† ‰ƒ‹• ‘ˆ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘dz ‹• ‡š‡’– —†‡” •‡…–‹‘
ͳͲȋʹ͵ ȌǤDz˜‡•–‡–ˆ—†dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋƒȌ‘ˆ–Š‡š’Žƒƒ–‹‘ͳ–‘
•‡…–‹‘ͳͳͷǤ
Exemption in respect of certain income of wholly owned subsidiary of Abu Dhabi Investment Authority
and Sovereign Wealth Fund [Section 10(23FE)]

 ‘”†‡” –‘ ’”‘‘–‡ ‹˜‡•–‡– ‘ˆ •‘˜‡”‡‹‰ ™‡ƒŽ–Š ˆ—†ǡ ‹…Ž—†‹‰ –Š‡ ™Š‘ŽŽ› ‘™‡† •—„•‹†‹ƒ”› ‘ˆ „— Šƒ„‹
˜‡•–‡–—–Š‘”‹–›ȋȌǡ‡š‡’–‹‘Šƒ•„‡‡’”‘˜‹†‡†–‘ƒ›‹…‘‡‘ˆƒ•’‡…‹ϐ‹‡†’‡”•‘‹–Š‡ƒ–—”‡‘ˆ
†‹˜‹†‡†ǡ‹–‡”‡•–‘”Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘ƒ‹˜‡•–‡–ƒ†‡„›‹–‹†‹ƒǡ™Š‡–Š‡”‹–Š‡ˆ‘”‘ˆ
†‡„–‘”‡“—‹–›ǡ‹ƒ…‘’ƒ›‘”‡–‡”’”‹•‡…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ†‡˜‡Ž‘’‹‰ǡ‘”‘’‡”ƒ–‹‰ƒ†ƒ‹–ƒ‹‹‰ǡ‘”
†‡˜‡Ž‘’‹‰ǡ‘’‡”ƒ–‹‰‘”ƒ‹–ƒ‹‹‰ƒ›‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›ƒ•†‡ϐ‹‡†‹š’Žƒƒ–‹‘–‘…Žƒ—•‡ȋ‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘
ȋͶȌ‘ˆ•‡…–‹‘ͺͲǦ‘ˆ–Š‡…–‘”•—…Š‘–Š‡”„—•‹‡••ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǤ
‘”†‡”–‘„‡‡Ž‹‰‹„Ž‡ˆ‘”‡š‡’–‹‘ǡ–Š‡‹˜‡•–‡–‹•”‡“—‹”‡†–‘„‡ƒ†‡‘‘”„‡ˆ‘”‡͵ͳ•–ƒ”…ŠǡʹͲʹͶƒ†‹•
”‡“—‹”‡†–‘„‡Š‡Ž†ˆ‘”ƒ–Ž‡ƒ•––Š”‡‡›‡ƒ”•Ǥ
‘”–Š‡’—”’‘•‡‘ˆ–Š‹•‡š‡’–‹‘ǡDz•’‡…‹ϐ‹‡†’‡”•‘dz‹•’”‘’‘•‡†–‘„‡†‡ϐ‹‡†–‘‡ƒǡǦ
ȋƒȌ  ™Š‘ŽŽ› ‘™‡† •—„•‹†‹ƒ”› ‘ˆ –Š‡ ǡ ™Š‹…Š ‹• ƒ ”‡•‹†‡– ‘ˆ –Š‡ ‹–‡† ”ƒ„ ‹”ƒ–‡• ȋȌ ƒ† ™Š‹…Š
ƒ‡• ‹˜‡•–‡–ǡ †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›ǡ ‘—– ‘ˆ –Š‡ ˆ—† ‘™‡† „› –Š‡
‘˜‡”‡– ‘ˆ –Š‡ ‹–‡† ”ƒ„
‹”ƒ–‡•Ǣƒ†
ȋ„Ȍ ƒ•‘˜‡”‡‹‰™‡ƒŽ–Šˆ—†™Š‹…Š•ƒ–‹•ϐ‹‡•–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ȋ‹Ȍ –‹•™Š‘ŽŽ›‘™‡†ƒ†…‘–”‘ŽŽ‡†ǡ†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ„›
‘˜‡”‡–‘ˆƒˆ‘”‡‹‰…‘—–”›Ǣ
ȋ‹‹Ȍ –‹••‡–—’ƒ†”‡‰—Žƒ–‡†—†‡”–Š‡Žƒ™‘ˆ–Š‡ˆ‘”‡‹‰…‘—–”›Ǣ
ȋ‹‹‹Ȍ –•‡ƒ”‹‰•ƒ”‡…”‡†‹–‡†‡‹–Š‡”–‘–Š‡ƒ……‘—–‘ˆ–Š‡
‘˜‡”‡–‘ˆ–Š‡ˆ‘”‡‹‰…‘—–”›‘”–‘ƒ›‘–Š‡”
ƒ……‘—–†‡•‹‰ƒ–‡†„›–Šƒ–
‘˜‡”‡–•—…Š–Šƒ–‘’‘”–‹‘‘ˆ–Š‡‡ƒ”‹‰•‹—”‡•ƒ›„‡‡ϐ‹––‘ƒ›
’”‹˜ƒ–‡’‡”•‘Ǣ
ȋ‹˜Ȍ –•ƒ••‡–˜‡•–‹–Š‡
‘˜‡”‡–‘ˆ–Š‡ˆ‘”‡‹‰…‘—–”›—’‘†‹••‘Ž—–‹‘Ǣ
ȋ˜Ȍ –†‘‡•‘–—†‡”–ƒ‡ƒ›…‘‡”…‹ƒŽƒ…–‹˜‹–›™Š‡–Š‡”™‹–Š‹‘”‘—–•‹†‡†‹ƒǢƒ†
ȋ˜‹Ȍ –‹•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ˆ‘”–Š‹•’—”’‘•‡Ǥ

Š‹•ƒ‡†‡–™‹ŽŽƒ’’Ž›‹”‡Žƒ–‹‘–‘–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹƒ†•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•Ǥ
Capital Gains Tax on account of transfer of shares of an Indian Company on account of relocation [Section
10(23FF)]
›…‘‡‘ˆ–Š‡ƒ–—”‡‘ˆƒ’‹–ƒŽ
ƒ‹•ǡƒ”‹•‹‰‘””‡…‡‹˜‡†„›ƒ‘Ǧ”‡•‹†‡–ǡ™Š‹…Š‹•‘ƒ……‘—–‘ˆ”‡Ž‘…ƒ–‹‘
ˆ”‘–Š‡‘”‹‰‹ƒŽˆ—†–‘–Š‡”‡•—Ž–ƒ–ˆ—†•ŠƒŽŽ„‡‡š‡’–Ǥ
Income of a registered trade union [Section 10(24)]
›‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†
Ȉ Dz…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›dzƒ†
Ȉ Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dz‘ˆƒ”‡‰‹•–‡”‡†—‹‘™‹–Š‹–Š‡‡ƒ‹‰‘ˆŠ‡”ƒ†‡‹‘•…–ǡͳͻʹ͸ǡˆ‘”‡†
’”‹ƒ”‹Ž›ˆ‘”–Š‡’—”’‘•‡‘ˆ”‡‰—Žƒ–‹‰–Š‡”‡Žƒ–‹‘„‡–™‡‡™‘”‡ƒ†‡’Ž‘›‡”•‘”„‡–™‡‡™‘”‡
ƒ†™‘”‡

‹•‡š‡’–ˆ”‘–ƒšǤ‹‹Žƒ”‡š‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒƒ••‘…‹ƒ–‹‘‘ˆ”‡‰‹•–‡”‡†—‹‘•Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 105

Income of Provident Fund [Section 10(25)]

‘ŽŽ‘™‹‰‹…‘‡‹•‡š‡’–ˆ”‘–ƒš—†‡”–Š‹••‡…–‹‘ǣ

Income of the Employees’ State Insurance Fund [Section 10(25A)]

›‹…‘‡‘ˆ–Š‡’Ž‘›‡‡•ǯ–ƒ–‡•—”ƒ…‡ —†‘ˆ–Š‡’Ž‘›‡‡•ǯ–ƒ–‡•—”ƒ…‡‘”’‘”ƒ–‹‘•‡–Ǧ—’—†‡”–Š‡
’”‘˜‹•‹‘•‘ˆ–Š‡’Ž‘›‡‡•ǯ–ƒ–‡•—”ƒ…‡…–ǡͳͻͶͺ‹•‡š‡’–ˆ”‘–ƒš—†‡”•‡…–‹‘ͳͲȋʹͷȌǤ
Income of a member of a Scheduled Tribe [Section 10(26)]
…‘‡‘ˆƒ‡„‡”‘ˆƒ…Š‡†—Ž‡†”‹„‡ȏƒ•’‡”ƒ”–‹…Ž‡͵͸͸ȋʹͷȌ‘ˆ–Š‡‘•–‹–—–‹‘Ȑ‹•‡š‡’–ˆ”‘–ƒšǡ‹ˆˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
9 —…Š‡„‡””‡•‹†‡•‹ƒ›ƒ”‡ƒ‹–Š‡–ƒ–‡‘ˆƒ‰ƒŽƒ†ǡƒ‹’—”ǡ”‹’—”ƒǡ”—ƒ…ŠƒŽ”ƒ†‡•Šǡ‹œ‘”ƒ‘”
†‹•–”‹…–‘ˆ‘”–Šƒ…Šƒ”‹ŽŽ•ǡ‹‹”‹ŽŽ•ǡŠƒ•‹‹ŽŽ•ǡ ƒ‹–‹ƒ‹ŽŽ•ƒ†
ƒ”‘‹ŽŽ•‘”‹–Š‡ƒ†ƒŠ”‡‰‹‘‘ˆ–Š‡
–ƒ–‡‘ˆ ƒ—ƒ†ƒ•Š‹”Ǥ
9 —…Š ‡š‡’–‹‘ ‹• ƒ˜ƒ‹Žƒ„Ž‡ ‹ ”‡•’‡…– ‘ˆ ‹…‘‡ ™Š‹…Š ƒ……”—‡•Ȁƒ”‹•‡• ˆ”‘ ƒ› •‘—”…‡ ‹ •—…Š ƒ”‡ƒ• ‘”
‹…‘‡„›™ƒ›‘ˆ†‹˜‹†‡†•Ȁ‹–‡”‡•–‘•‡…—”‹–‹‡•ƒ”‹•‡•ˆ”‘ƒ›ƒ”‡ƒǤ

’‡…‹ϐ‹‡†‹…‘‡‘ˆƒ‹‹‡•‡†‹˜‹†—ƒŽȏ‡…–‹‘ͳͲȋʹ͸ȌȐ
ȋ‹Ȍ Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡ǡ™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•–‘ƒ‹‹‡•‡‹†‹˜‹†—ƒŽǡ™‘—Ž†„‡‡š‡’–ˆ”‘‹…‘‡Ǧ–ƒš
Ȃ
ȋƒȌ ‹…‘‡ˆ”‘ƒ›•‘—”…‡‹–Š‡–ƒ–‡‘ˆ‹‹Ǣ‘”
ȋ„Ȍ ‹…‘‡„›™ƒ›‘ˆ†‹˜‹†‡†‘”‹–‡”‡•–‘•‡…—”‹–‹‡•Ǥ
ȋ‹‹Ȍ ‘™‡˜‡”ǡ–Š‹•‡š‡’–‹‘™‹ŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡–‘ƒ‹‹‡•‡™‘ƒ™Š‘ǡ‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲͲͺǡƒ””‹‡•
ƒ‘Ǧ‹‹‡•‡‹†‹˜‹†—ƒŽǤ

Income of Minor [Section 10(32)]

†‡”•‡…–‹‘͸ͶȋͳȌ‹…‘‡‘ˆƒ‹‘”…Š‹Ž†‹•…Ž—„„‡†ƒŽ‘‰™‹–Š–Š‡‹…‘‡‘ˆŠ‹•ȀŠ‡”’ƒ”‡–ǡ•—„Œ‡…––‘…‡”–ƒ‹
…‘†‹–‹‘•Ǥˆ–Š‡‹…‘‡‘ˆƒ‹†‹˜‹†—ƒŽ‹…Ž—†‡•ƒ›‹…‘‡‘ˆŠ‹•ȀŠ‡”‹‘”…Š‹Ž†ȋ†‡’‡†‡–‘”‘–ǡƒ†‘’–‡†
…Š‹Ž†Ȍǡ–Š‡•—…Š‹†‹˜‹†—ƒŽ…ƒ…Žƒ‹‡š‡’–‹‘ȋ‹”‡•’‡…–‘ˆ‡ƒ…Š‹‘”…Š‹Ž†Ȍ‘ˆŽ‘™‡”‘ˆˆ‘ŽŽ‘™‹‰ƒ‘—–ǣ
ȋƒȌ •ǤͳǡͷͲͲ’‡”‹‘”…Š‹Ž†Ǣ‘”
ȋ„Ȍ ‘—–‘ˆ‹…‘‡‘ˆ‡ƒ…Š‹‘”…Š‹Ž†ȋ™Š‹…Š‹•…Ž—„„‡†ȌǤ

Income on Buyback of Shares [Section 10(34A)]

›‹…‘‡ƒ”‹•‹‰–‘ƒƒ••‡••‡‡ǡ„‡‹‰ƒ•Šƒ”‡Š‘Ž†‡”ǡ‘ƒ……‘—–‘ˆ„—›„ƒ…‘ˆ•Šƒ”‡•„›–Š‡…‘’ƒ›ƒ•”‡ˆ‡””‡†
–‘‹•‡…–‹‘ͳͳͷ‹•‡š‡’–ˆ”‘–ƒšǤ
 106 Lesson 3 Ȉ EP-TL

Income from international sporting event [Section 10(39)]

”‘–Š‡ƒ••‡••‡–›‡ƒ”ʹͲͲ͸ǦͲ͹ǡƒ›•’‡…‹ϐ‹‡†‹…‘‡‘ˆ‘–‹ϐ‹‡†’‡”•‘ǡƒ”‹•‹‰ˆ”‘ƒ‹–‡”ƒ–‹‘ƒŽ•’‘”–‹‰
‡˜‡–Š‡Ž†‹†‹ƒ‹•‡š‡’–ˆ”‘–ƒšǡ‹ˆ–Š‡‡˜‡–‹•ƒ’’”‘˜‡†„›–Š‡‹–‡”ƒ–‹‘ƒŽ„‘†›ƒ†‹•‘–‹ϐ‹‡†„›–Š‡
‡–”ƒŽ
‘˜‡”‡–ƒ†Šƒ•’ƒ”–‹…‹’ƒ–‹‘„›‘”‡–Šƒ–™‘…‘—–”‹‡•Ǥ
Income received as grant by a subsidiary company [Section 10(40)]
…‘‡‘ˆƒ›•—„•‹†‹ƒ”›…‘’ƒ›„›™ƒ›‘ˆ‰”ƒ–‘”‘–Š‡”™‹•‡”‡…‡‹˜‡†ˆ”‘‹–•†‹ƒŠ‘Ž†‹‰…‘’ƒ›™Š‹…Š‹•
‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ‰‡‡”ƒ–‹‘Ȁ–”ƒ•‹••‹‘Ȁ†‹•–”‹„—–‹‘‘ˆ’‘™‡”‹•‡š‡’–ǡ‹ˆ•—…Š”‡…‡‹’–‹•ˆ‘”•‡––Ž‡‡–
‘ˆ†—‡•‹…‘‡…–‹‘™‹–Š”‡…‘•–”—…–‹‘‘””‡˜‹˜ƒŽ‘ˆƒ‡š‹•–‹‰„—•‹‡••‘ˆ’‘™‡”‰‡‡”ƒ–‹‘ǤŠ‡‡š‡’–‹‘‹•
ƒ˜ƒ‹Žƒ„Ž‡ǡ‹ˆ–Š‡”‡…‘•–”—…–‹‘‘””‡˜‹˜ƒŽ‹•„›™ƒ›‘ˆ–”ƒ•ˆ‡”‘ˆ„—•‹‡••–‘–Š‡†‹ƒ…‘’ƒ›‘–‹ϐ‹‡†—†‡”
•‡…–‹‘ͺͲȋͶȌȋ˜ȌȋƒȌǤ
Income from transfer of asset of an undertaking engaged in the business of generation, transmission or
distribution of power [Section 10(41)]
†‡”•‡…–‹‘ͳͲȋͶͳȌǡƒ›…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰‹–Š‡ƒ„‘˜‡…ƒ•‡‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǡ‹ˆ–Š‡–”ƒ•ˆ‡”Šƒ•–ƒ‡
’Žƒ…‡„‡ˆ‘”‡’”‹ŽͳǡʹͲͲ͸Ǥ
…‘‡ ˆ”‘ –”ƒ•ˆ‡” ‘ˆ …ƒ’‹–ƒŽ ƒ••‡– ‘ˆ ƒ —†‡”–ƒ‹‰ ‡‰ƒ‰‡† ‹ –Š‡ „—•‹‡•• ‘ˆ ‰‡‡”ƒ–‹‘ǡ –”ƒ•‹••‹‘ ‘”
†‹•–”‹„—–‹‘‘ˆ’‘™‡”™Š‡”‡•—…Š–”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡‘‘”„‡ˆ‘”‡͵ͳǤ͵ǤʹͲͲ͸ƒ†–”ƒ•ˆ‡”‹•ƒ†‡–‘–Š‡†‹ƒ
…‘’ƒ›ƒ•‘–‹ϐ‹‡†—Ȁ•ͺͲͳǤ
Income of a body or authority set up by two countries [Section 10(42)]

›•’‡…‹ϐ‹‡†‹…‘‡ƒ”‹•‹‰–‘ƒ„‘†›‘”ƒ—–Š‘”‹–›™Š‹…ŠȂ

Šƒ•„‡‡‡•–ƒ„Ž‹•Š‡†‘”…‘•–‹–—–‡†‘”ƒ’’‘‹–‡†—†‡”ƒ–”‡ƒ–›‘”ƒƒ‰”‡‡‡–
‡–‡”‡†‹–‘„›–Š‡‡–”ƒŽ
‘˜‡”‡–™‹–Š–™‘‘”‘”‡…‘—–”‹‡•‘”ƒ…‘˜‡–‹‘
•‹‰‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ

‹•‡•–ƒ„Ž‹•Š‡†‘”…‘•–‹–—–‡†‘”ƒ’’‘‹–‡†‘–ˆ‘”–Š‡’—”’‘•‡•‘ˆ’”‘ϐ‹–Ǣ

‹•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•
…Žƒ—•‡•ŠƒŽŽ„‡ˆ—ŽŽ›‡š‡’–‡†Ǥ

Reverse Mortgage [Section 10(43)]

›ƒ‘—–”‡…‡‹˜‡†„›ƒ‹†‹˜‹†—ƒŽƒ•ƒŽ‘ƒǡ‡‹–Š‡”‹Ž—’Ǧ•—‘”‹‹•–ƒŽŽ‡–‹ƒ–”ƒ•ƒ…–‹‘‘ˆ”‡˜‡”•‡
‘”–‰ƒ‰‡”‡ˆ‡””‡†‹…Žƒ—•‡ȋš˜‹Ȍ‘ˆ‡…–‹‘Ͷ͹•ŠƒŽŽ„‡‡š‡’–‡†Ǥ
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 107

New Pension System Trust [Section 10(44)]

›‹…‘‡”‡…‡‹˜‡†„›ƒ›’‡”•‘ˆ‘”ǡ‘”‘„‡ŠƒŽˆ‘ˆ–Š‡‡™‡•‹‘›•–‡”—•–‡•–ƒ„Ž‹•Š‡†‘ʹ͹–Š ‡„”—ƒ”›ǡ
ʹͲͲͺ•ŠƒŽŽ„‡‡š‡’–‡†Ǥ
Exemption of Allowance or perquisite to chairman/member of UPSC [Section 10 (45)]
›ƒŽŽ‘™ƒ…‡‘”’‡”“—‹•‹–‡ǡƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ‹–Š‹•„‡ŠƒŽˆǡ’ƒ‹†
–‘ –Š‡ …Šƒ‹”ƒ ‘” ƒ ”‡–‹”‡† …Šƒ‹”ƒ ‘” ƒ› ‘–Š‡” ‡„‡” ‘” ”‡–‹”‡† ‡„‡” ‘ˆ –Š‡ ‹‘ —„Ž‹… ‡”˜‹…‡
‘‹••‹‘ǡ•ŠƒŽŽ„‡‡š‡’–Ǥ
Note: Š‡‡š‡’–‹‘Šƒ•„‡‡™‹–Š†”ƒ™˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
š‡’–‹‘‘ˆǮ•’‡…‹ϐ‹‡†‹…‘‡ǯ‘ˆ…‡”–ƒ‹„‘†‹‡•‘”ƒ—–Š‘”‹–‹‡•ȏ‡…–‹‘ͳͲȋͶ͸ȌȐ
›•’‡…‹ϐ‹‡†‹…‘‡ƒ”‹•‹‰–‘ƒ„‘†›‘”ƒ—–Š‘”‹–›‘”‘ƒ”†‘””—•–‘”‘‹••‹‘™Š‹…Šǣ
Ȉ ‹•…‘•–‹–—–‡†‘”‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ‡–”ƒŽǡ–ƒ–‡‘””‘˜‹…‹ƒŽ…–ǡ‘”Šƒ•„‡‡…‘•–‹–—–‡†„›–Š‡
‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–™‹–Š–Š‡‘„Œ‡…–‘ˆ”‡‰—Žƒ–‹‰‘”ƒ†‹‹•–‡”‹‰ƒƒ…–‹˜‹–›ˆ‘”–Š‡
„‡‡ϐ‹–‘ˆ‰‡‡”ƒŽ’—„Ž‹…Ǣ
Ȉ ‹•‘–‡‰ƒ‰‡†‹…‘‡”…‹ƒŽƒ…–‹˜‹–›Ǣƒ†
Ȉ ‹••’‡…‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡‹–Š‹•„‡ŠƒŽˆǡ•ŠƒŽŽ„‡‡š‡’–Ǥ

Š‡‡–”ƒŽ
‘˜‡”‡–Šƒ•–Š‡’‘™‡”–‘‘–‹ˆ›–Š‡ƒ–—”‡ƒ†‡š–‡–‘ˆ–Š‡‹…‘‡‘ˆƒ…Žƒ••‘ˆ•—…Š„‘†›‘”
ƒ—–Š‘”‹–›‘”‘ƒ”†‘””—•–‘”‘‹••‹‘™Š‹…Š•ŠƒŽŽ…‘•–‹–—–‡–Š‡•’‡…‹ϐ‹‡†‹…‘‡ǡ„›•‹‰Ž‡‘–‹ϐ‹…ƒ–‹‘Ǥ
š‡’–‹‘‘ˆ…‘‡‘ˆ‘–‹ϐ‹‡†Ǯˆ”ƒ•–”—…–—”‡†‡„–ˆ—†ǯȏ‡…–‹‘ͳͲȋͶ͹ȌȐ
› ‹…‘‡ ‘ˆ ‘–‹ϐ‹‡† Ǯ‹ˆ”ƒ•–”—…–—”‡ †‡„– ˆ—†ǯǡ ™Š‹…Š ‹• •‡– —’ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ‰—‹†‡Ž‹‡• ƒ• ƒ› „‡
’”‡•…”‹„‡†ǡ•ŠƒŽŽ„‡‡š‡’–ˆ”‘‹…‘‡Ǧ–ƒšǤ
Exemption of Income of a foreign company from sale of Crude Oil in India [Section 10 (48)]
›‹…‘‡‘ˆƒ ‘”‡‹‰‘’ƒ›”‡…‡‹˜‡†‹†‹ƒ‹†‹ƒ…—””‡…›‘ƒ……‘—–‘ˆ•ƒŽ‡‘ˆ…”—†‡‘‹Ž–‘ƒ›’‡”•‘
‹†‹ƒ•ŠƒŽŽ„‡‡š‡’–‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†Ǥ
Ȉ —…Š…‘‡‹•‹’—”•—ƒ––‘ƒƒ‰”‡‡‡–‘”ƒƒ””ƒ‰‡‡–‡–‡”‡†‹–‘„›–Š‡‡–”ƒŽ
‘˜–Ǥ‘”ƒ’’”‘˜‡†
„›–Š‡‡–”ƒŽ
‘˜–ǤǢ
Ȉ Šƒ˜‹‰”‡‰ƒ”†–‘–Š‡ƒ–‹‘ƒŽ‹–‡”‡•–ǡ–Š‡ˆ‘”‡‹‰…‘’ƒ›ƒ†–Š‡ƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–ƒ”‡‘–‹ϐ‹‡†
„›–Š‡‡–”ƒŽ
‘˜–Ǥ‹–Š‹•„‡ŠƒŽˆǢƒ†
Ȉ –Š‡ˆ‘”‡‹‰…‘’ƒ›‹•‘–‡‰ƒ‰‡†‹ƒ›ƒ…–‹˜‹–›ǡ‘–Š‡”–Šƒ”‡…‡‹’–‘ˆ•—…Š‹…‘‡ǡ‹†‹ƒǤ

Exemption of income of foreign company from sale of leftover stock of crude oil on termination of
agreement or arrangement [Section 10(48B)]
›‹…‘‡‘ˆˆ‘”‡‹‰…‘’ƒ›‘ƒ……‘—–‘ˆ•ƒŽ‡‘ˆŽ‡ˆ–‘˜‡”•–‘…‘ˆ…”—†‡‘‹Žˆ”‘–Š‡ˆƒ…‹Ž‹–›‹†‹ƒƒˆ–‡”–Š‡
‡š’‹”› ‘” ‘ –‡”‹ƒ–‹‘ ‘ˆ –Š‡ ƒ‰”‡‡‡– ‘” –Š‡ ƒ””ƒ‰‡‡– •ŠƒŽŽ „‡ ‡š‡’–ǡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ –‡”•
‡–‹‘‡†–Š‡”‡‹Ǥ
Income accruing or arising to Indian Strategic Petroleum Reserves Limited (ISPRL)
[Section 10(48C)]
› ‹…‘‡ ƒ……”—‹‰ ‘” ƒ”‹•‹‰ –‘ †‹ƒ –”ƒ–‡‰‹… ‡–”‘Ž‡— ‡•‡”˜‡• ‹‹–‡† ȋȌǡ „‡‹‰ ƒ ™Š‘ŽŽ› ‘™‡†
•—„•‹†‹ƒ”›‘ˆ‹Ž†—•–”›‡˜‡Ž‘’‡–‘ƒ”†—†‡”–Š‡‹‹•–”›‘ˆ‡–”‘Ž‡—ƒ†ƒ–—”ƒŽ
ƒ•ǡƒ•ƒ”‡•—Ž–‘ˆƒ
ƒ””ƒ‰‡‡–ˆ‘””‡’Ž‡‹•Š‡–‘ˆ…”—†‡‘‹Ž•–‘”‡†‹‹–••–‘”ƒ‰‡ˆƒ…‹Ž‹–›‹’—”•—ƒ…‡–‘†‹”‡…–‹‘•‘ˆ–Š‡‡–”ƒŽ

‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǤ
Š‹•‡š‡’–‹‘•ŠƒŽŽ„‡•—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡…”—†‡‘‹Ž‹•”‡’Ž‡‹•Š‡†‹–Š‡•–‘”ƒ‰‡ˆƒ…‹Ž‹–›™‹–Š‹
–Š”‡‡›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ˆ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡…”—†‡‘‹Ž™ƒ•”‡‘˜‡†ˆ”‘–Š‡•–‘”ƒ‰‡ˆƒ…‹Ž‹–›ˆ‘”
–Š‡ˆ‹”•––‹‡Ǥ
 108 Lesson 3 Ȉ EP-TL

Š‹•ƒ‡†‡–™‹ŽŽ–ƒ‡‡ˆˆ‡…–ˆ”‘ͳ•–’”‹ŽǡʹͲʹͲƒ†™‹ŽŽǡƒ……‘”†‹‰Ž›ǡƒ’’Ž›‹”‡Žƒ–‹‘–‘–Š‡ƒ••‡••‡–›‡ƒ”
ʹͲʹͲǦʹͳƒ†•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•Ǥ
Exemption of income of National Financial Holdings Company [Section 10(49)]
›‹…‘‡‘ˆ–Š‡ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‘Ž†‹‰•‘’ƒ›ǡ„‡‹‰ƒ…‘’ƒ›•‡–Ǧ—’„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ•ŠƒŽŽ
„‡‡š‡’–Ǥ
Other important exemptions
’ƒ”–ˆ”‘ƒ„‘˜‡†‹•…—••‡†‡š‡’–‹‘‘ˆ•‡…–‹‘ͳͲǡˆ‘ŽŽ‘™‹‰‹•–Š‡Ž‹•–‘ˆ‘–Š‡”‹’‘”–ƒ–‡š‡’–‹‘•ǣ
Section 10AA provides for exemption in respect of income of newly established units in Special Economic
Zones

Applicability
†‡†—…–‹‘‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•™Š‹…Šƒ”‡†‡”‹˜‡†„›ƒƒ••‡••‡‡„‡‹‰ƒ‡–”‡’”‡‡—”ˆ”‘–Š‡‡š’‘”–‘ˆƒ”–‹…Ž‡•
‘”–Š‹‰•‘”’”‘˜‹†‹‰ƒ›•‡”˜‹…‡ǡ•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ”‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ
Which assessee is eligible for exemption
š‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡–‘
Ȉ ƒŽŽ…ƒ–‡‰‘”‹‡•‘ˆƒ••‡••‡‡•™Š‘†‡”‹˜‡ƒ›’”‘ϐ‹–•‘”‰ƒ‹•ˆ”‘ƒ—†‡”–ƒ‹‰ǡ„‡‹‰ƒ—‹–ǡ
Ȉ ‡‰ƒ‰‡†‹–Š‡ƒ—ˆƒ…–—”‹‰‘”’”‘†—…–‹‘‘ˆƒ”–‹…Ž‡•‘”–Š‹‰•‘”’”‘˜‹•‹‘‘ˆƒ›•‡”˜‹…‡Ǥ

—…Šƒ••‡••‡‡•Š‘—Ž†„‡ƒ‡–”‡’”‡‡—””‡ˆ‡””‡†–‘‹•‡…–‹‘ʹȋŒȌ‘ˆ–Š‡…–ǡʹͲͲͷǡ‹Ǥ‡Ǥǡƒ’‡”•‘™Š‘Šƒ•„‡‡
‰”ƒ–‡†ƒŽ‡––‡”‘ˆƒ’’”‘˜ƒŽ„›–Š‡‡˜‡Ž‘’‡–‘‹••‹‘‡”—†‡”•‡…–‹‘ͳͷȋͻȌ‘ˆ–Š‡•ƒ‹†…–Ǥ
Š‹••‡…–‹‘ƒ’’Ž‹‡•–‘ƒ›—†‡”–ƒ‹‰ǡ„‡‹‰–Š‡‹–ǡ™Š‹…Šˆ—Žϐ‹Ž•ƒŽŽ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǡƒ‡Ž›ǣ
ȋ‹Ȍ ‹–Šƒ•„‡‰—‘”„‡‰‹•–‘ƒ—ˆƒ…–—”‡‘”’”‘†—…‡ƒ”–‹…Ž‡•‘”–Š‹‰•‘”’”‘˜‹†‡•‡”˜‹…‡•†—”‹‰–Š‡’”‡˜‹‘—•
›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ƒ••‡••‡– ›‡ƒ” …‘‡…‹‰ ‘ ‘” ƒˆ–‡” –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲͲ͸ ‹ ƒ› ’‡…‹ƒŽ
…‘‘‹…‘‡Ǣ
ȋ‹‹Ȍ ‹–‹•‘–ˆ‘”‡†„›–Š‡•’Ž‹––‹‰—’ǡ‘”–Š‡”‡…‘•–”—…–‹‘ǡ‘ˆƒ„—•‹‡••ƒŽ”‡ƒ†›‹‡š‹•–‡…‡ǣ
 ”‘˜‹†‡†–Šƒ––Š‹•…‘†‹–‹‘•ŠƒŽŽ‘–ƒ’’Ž›‹”‡•’‡…–‘ˆƒ›—†‡”–ƒ‹‰ǡ„‡‹‰–Š‡‹–ǡ™Š‹…Š‹•ˆ‘”‡†ƒ•
ƒ ”‡•—Ž– ‘ˆ –Š‡ ”‡Ǧ‡•–ƒ„Ž‹•Š‡–ǡ ”‡…‘•–”—…–‹‘ ‘” ”‡˜‹˜ƒŽ „› –Š‡ ƒ••‡••‡– ‘ˆ –Š‡ „—•‹‡•• ‘ˆ ƒ› •—…Š
—†‡”–ƒ‹‰ ƒ• ‹• ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͵͵ǡ ‹ –Š‡ …‹”…—•–ƒ…‡• ƒ† ™‹–Š‹ –Š‡ ’‡”‹‘† •’‡…‹ϐ‹‡† ‹ –Šƒ–
•‡…–‹‘Ǣ
ȋ‹‹‹Ȍ ‹–‹•‘–ˆ‘”‡†„›–Š‡–”ƒ•ˆ‡”–‘ƒ‡™„—•‹‡••ǡ‘ˆƒ…Š‹‡”›’Žƒ–’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡Ǥ
 ‘™‡˜‡”ǡ†‡†—…–‹‘—†‡”•‡…–‹‘ͳͲ™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‹ˆ–‘–ƒŽ˜ƒŽ—‡‘ˆ–Š‡ƒ…Š‹‡”›‘”’Žƒ––”ƒ•ˆ‡””‡†
†‘‡•‘–‡š…‡‡†ʹͲΨ‘ˆ–Š‡–‘–ƒŽ˜ƒŽ—‡‘ˆƒ…Š‹‡”›‘”’Žƒ–—•‡†‹–Š‡„—•‹‡••Ǥ
 ‘”–Š‹•’—”’‘•‡ǡƒ›ƒ…Š‹‡”›‘”’Žƒ–™Š‹…Š™ƒ•—•‡†‘—–•‹†‡†‹ƒ„›ƒ›’‡”•‘‘–Š‡”–Šƒ–Š‡ƒ••‡••‡‡
•ŠƒŽŽ‘–„‡”‡‰ƒ”†‡†ƒ•ƒ…Š‹‡”›‘”’Žƒ–’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡
ˆ—Žϐ‹ŽŽ‡†ǣ
ȋƒȌ •—…Šƒ…Š‹‡”›‘”’Žƒ–™ƒ•‘–ƒ–ƒ›–‹‡—•‡†‹†‹ƒǢ
ȋ„Ȍ •—…Šƒ…Š‹‡”›‘”’Žƒ–‹•‹’‘”–‡†‹–‘†‹ƒˆ”‘ƒ›…‘—–”›‘—–•‹†‡†‹ƒǢƒ†
ȋ…Ȍ ‘†‡†—…–‹‘‘ƒ……‘—–‘ˆ†‡’”‡…‹ƒ–‹‘Šƒ•„‡‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ•—…Šƒ…Š‹‡”›‘”’Žƒ––‘ƒ›
’‡”•‘‡ƒ”Ž‹‡”Ǥ
ȋ‹˜Ȍ Š‡ƒ••‡••‡‡•Š‘—Ž†ˆ—”‹•Š‹–Š‡’”‡•…”‹„‡†ˆ‘”ǡƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡ǡ–Š‡”‡’‘”–‘ˆƒ…Šƒ”–‡”‡†
ƒ……‘—–ƒ–…‡”–‹ˆ›‹‰–Šƒ––Š‡†‡†—…–‹‘Šƒ•„‡‡…‘””‡…–Ž›…Žƒ‹‡†Ǥ
Deduction
ȋ‹Ȍ ͳͲͲΨ‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘–Š‡export, of such articles or things or from services for a period
‘ˆϐ‹˜‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ȏͳ•––‘ͷ–Š›‡ƒ”Ȑ„‡‰‹‹‰™‹–Š–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Š‡
 Lesson 3 Ȉ Incomes which do not form Part of Total Income 109

’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹–„‡‰‹•–‘ƒ—ˆƒ…–—”‡‘”’”‘†—…‡•—…Šƒ”–‹…Ž‡•‘”–Š‹‰•‘”’”‘˜‹†‡•‡”˜‹…‡•ǡ
ƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ†ϐ‹ˆ–›’‡”…‡–‘ˆ•—…Š’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ‘”ˆ—”–Š‡”ϐ‹˜‡ƒ••‡••‡–›‡ƒ”•ƒ†–Š‡”‡ƒˆ–‡”Ǣ
ȋ‹‹Ȍ ͷͲΨ‘ˆ•—…Š’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ‘”ˆ—”–Š‡”ͷƒ••‡••‡–›‡ƒ”•ȏ͸–Š–‘ͳͲ–Š›‡ƒ”Ȑ
 ˆ‘”ˆ—”–Š‡”‡š–ϐ‹˜‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ȏͳͳ–Š–‘ͳͷ–Š›‡ƒ”Ȑǡ•‘—…Š‘ˆ–Š‡ƒ‘—–‘–‡š…‡‡†‹‰
ϐ‹ˆ–›’‡”…‡–‘ˆ–Š‡’”‘ϐ‹–ƒ•‹•†‡„‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹”‡•’‡…–‘ˆ™Š‹…Š
–Š‡†‡†—…–‹‘‹•–‘„‡ƒŽŽ‘™‡†ƒ†…”‡†‹–‡†–‘ƒ”‡•‡”˜‡ƒ……‘—–ȋ–‘„‡…ƒŽŽ‡†–Š‡Dz’‡…‹ƒŽ…‘‘‹…‘‡‡Ǧ
‹˜‡•–‡–‡•‡”˜‡……‘—–dzȌ–‘„‡…”‡ƒ–‡†ƒ†—–‹Ž‹œ‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡‹
–Š‡ƒ‡”Žƒ‹††‘™‹•—„Ǧ•‡…–‹‘ȋʹȌǤ

‘’—–ƒ–‹‘‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‡š’‘”–•‘ˆ•—…Š—†‡”–ƒ‹‰•
Š‡’”‘ϐ‹–•†‡”‹˜‡†ˆ”‘‡š’‘”–‘ˆƒ”–‹…Ž‡•‘”–Š‹‰•‘”•‡”˜‹…‡•ȋ‹…Ž—†‹‰…‘’—–‡”•‘ˆ–™ƒ”‡Ȍ•ŠƒŽŽ„‡–Š‡ƒ‘—–
™Š‹…Š„‡ƒ”•–‘–Š‡’”‘ϐ‹–•‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡—†‡”–ƒ‹‰ǡ„‡‹‰–Š‡—‹–ǡ–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•–Š‡‡š’‘”–
–—”‘˜‡”‹”‡•’‡…–‘ˆ•—…Šƒ”–‹…Ž‡•‘”–Š‹‰•‘”•‡”˜‹…‡•„‡ƒ”•–‘–Š‡–‘–ƒŽ–—”‘˜‡”‘ˆ–Š‡„—•‹‡••…ƒ””‹‡†‘„›–Š‡
—†‡”–ƒ‹‰ǡ‹Ǥ‡Ǥǡ
š’‘”––—”‘˜‡”‘ˆ‹–
”‘ϐ‹–•‘ˆ‹–‹š
‘–ƒŽ–—”‘˜‡”‘ˆ‹–
Žƒ”‹ϐ‹…ƒ–‹‘‘‹••—‡•”‡Žƒ–‹‰–‘‡š’‘”–‘ˆ…‘’—–‡”•‘ˆ–™ƒ”‡
‡…–‹‘ͳͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ••‡••‡‡•™Š‘†‡”‹˜‡ƒ›’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‡š’‘”–‘ˆƒ”–‹…Ž‡•‘”–Š‹‰•‘”
•‡”˜‹…‡•ȋ‹…Ž—†‹‰…‘’—–‡”•‘ˆ–™ƒ”‡Ȍˆ”‘–Š‡›‡ƒ”‹™Š‹…Š–Š‡‹–„‡‰‹•–‘ƒ—ˆƒ…–—”‡‘”’”‘†—…‡•—…Š
ƒ”–‹…Ž‡•‘”–Š‹‰•‘”’”‘˜‹†‡•‡”˜‹…‡•ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ•—„Œ‡…––‘ˆ—Žϐ‹ŽŽ‡–‘ˆ–Š‡’”‡•…”‹„‡†…‘†‹–‹‘•ǤŠ‡
’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘‘•‹–‡†‡˜‡Ž‘’‡–‘ˆ…‘’—–‡”•‘ˆ–™ƒ”‡ȋ‹…Ž—†‹‰•‡”˜‹…‡•ˆ‘”†‡˜‡Ž‘’‡–‘ˆ
•‘ˆ–™ƒ”‡Ȍ‘—–•‹†‡†‹ƒ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘–Š‡‡š’‘”–‘ˆ…‘’—–‡”•‘ˆ–™ƒ”‡
‘—–•‹†‡†‹ƒǤ
Meaning of Export turnover: –‡ƒ•–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‹†‹ƒ‘”„”‘—‰Š–‹–‘†‹ƒ„›–Š‡ƒ••‡••‡‡‹
”‡•’‡…–‘ˆ‡š’‘”–„›–Š‡—†‡”–ƒ‹‰„‡‹‰–Š‡—‹–‘ˆƒ”–‹…Ž‡•‘”–Š‹‰•‘”•‡”˜‹…‡•Ǥ
‘™‡˜‡”ǡ‹–†‘‡•‘–‹…Ž—†‡
Ȉ ˆ”‡‹‰Š–
Ȉ –‡Ž‡…‘—‹…ƒ–‹‘…Šƒ”‰‡•
Ȉ ‹•—”ƒ…‡

ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ †‡Ž‹˜‡”› ‘ˆ –Š‡ ƒ”–‹…Ž‡• ‘” –Š‹‰• ‘—–•‹†‡ †‹ƒ ‘” ‡š’‡•‡• ‹…—””‡† ‹ ˆ‘”‡‹‰ ‡š…Šƒ‰‡ ‹
”‡†‡”‹‰‘ˆ•‡”˜‹…‡•ȋ‹…Ž—†‹‰…‘’—–‡”•‘ˆ–™ƒ”‡Ȍ‘—–•‹†‡†‹ƒǤ
Žƒ”‹ϔ‹…ƒ–‹‘‘‹••—‡•”‡Žƒ–‹‰–‘†‡†—…–‹‘‘ˆˆ”‡‹‰Š–ǡ–‡Ž‡…‘—‹…ƒ–‹‘…Šƒ”‰‡•ƒ†‘–Š‡”‡š’‡•‡•ˆ”‘
–‘–ƒŽ–—”‘˜‡”ȏ‹”…—Žƒ”‘ǤͺȀ͸Ͷͷ;ǡ†ƒ–‡†ͷͺȀͶ;Ȁ͸Ͷͷ;Ȑ
Dzš’‘”––—”‘˜‡”dzǡinter aliaǡ†‘‡•‘–‹…Ž—†‡ˆ”‡‹‰Š–ǡ–‡Ž‡…‘—‹…ƒ–‹‘…Šƒ”‰‡•‘”‹•—”ƒ…‡ƒ––”‹„—–ƒ„Ž‡–‘–Š‡
†‡Ž‹˜‡”› ‘ˆ –Š‡ ƒ”–‹…Ž‡• ‘” –Š‹‰• ‘—–•‹†‡ †‹ƒ ‘” ‡š’‡•‡•ǡ ‹ˆ ƒ›ǡ ‹…—””‡† ‹ ˆ‘”‡‹‰ ‡š…Šƒ‰‡ ‹ ”‡†‡”‹‰ ‘ˆ
•‡”˜‹…‡•ȋ‹…Ž—†‹‰…‘’—–‡”•‘ˆ–™ƒ”‡Ȍ‘—–•‹†‡†‹ƒǤ
Šƒ•ǡ˜‹†‡–Š‹•‘–‹ϐ‹…ƒ–‹‘ǡ…Žƒ”‹ϐ‹‡†–Šƒ–ˆ”‡‹‰Š–ǡ–‡Ž‡…‘—‹…ƒ–‹‘…Šƒ”‰‡•ƒ†‹•—”ƒ…‡‡š’‡•‡•ƒ”‡–‘„‡
‡š…Ž—†‡†„‘–Šˆ”‘Dz‡š’‘”––—”‘˜‡”dzƒ†Dz–‘–ƒŽ–—”‘˜‡”ǯǡ™Š‹Ž‡™‘”‹‰‘—–†‡†—…–‹‘ƒ†‹••‹„Ž‡—†‡”•‡…–‹‘
ͳͲ–‘–Š‡‡š–‡––Š‡›ƒ”‡ƒ––”‹„—–ƒ„Ž‡–‘–Š‡†‡Ž‹˜‡”›‘ˆƒ”–‹…Ž‡•‘”–Š‹‰•‘—–•‹†‡†‹ƒǤ
‹‹Žƒ”Ž›ǡ‡š’‡•‡•‹…—””‡†‹ˆ‘”‡‹‰‡š…Šƒ‰‡ˆ‘””‡†‡”‹‰•‡”˜‹…‡•‘—–•‹†‡†‹ƒƒ”‡–‘„‡‡š…Ž—†‡†ˆ”‘„‘–Š
Dz‡š’‘”––—”‘˜‡”dzƒ†Dz–‘–ƒŽ–—”‘˜‡”dz™Š‹Ž‡…‘’—–‹‰†‡†—…–‹‘ƒ†‹••‹„Ž‡—†‡”•‡…–‹‘ͳͲǤ
Calculation of Deduction
Step 1ǣƒŽ…—Žƒ–‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡ƒ…–ǡ„—–„‡ˆ‘”‡ƒŽŽ‘™‹‰†‡†—…–‹‘
—†‡”•‡…–‹‘ͳͲǤ
Step 2ǣ ”‘ –Š‡ ƒ‘—– …ƒŽ…—Žƒ–‡† ‹ –‡’ ͳǡ ƒŽŽ‘™ –Š‡ †‡†—…–‹‘ —†‡” •‡…–‹‘ ͳͲǡ ™Š‹…Š ‹• Ž‡ƒ•– ‘ˆ –Š‡
 110 Lesson 3 Ȉ EP-TL

ˆ‘ŽŽ‘™‹‰ǣ
Ȉ ‘—–…ƒŽ…—Žƒ–‡†—†‡”•–‡’ͳǢ‘”
Ȉ ‘—–†‡†—…–‹„Ž‡—†‡”•‡…–‹‘ͳͲ
Conditions:
ƒȌ –Š‡ƒ‘—–…”‡†‹–‡†–‘–Š‡’‡…‹ƒŽ…‘‘‹…‘‡‡Ǧ‹˜‡•–‡–‡•‡”˜‡……‘—–‹•–‘„‡—–‹Ž‹•‡†Ǧ
ȋ‹Ȍ ˆ‘”–Š‡’—”’‘•‡‘ˆƒ…“—‹”‹‰ƒ…Š‹‡”›‘”’Žƒ–™Š‹…Š‹•ϐ‹”•–’—––‘—•‡„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆƒ’‡”‹‘†
‘ˆ–Š”‡‡›‡ƒ”•ˆ‘ŽŽ‘™‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡”‡•‡”˜‡™ƒ•…”‡ƒ–‡†Ǣƒ†
ȋ‹‹Ȍ —–‹Ž–Š‡ƒ…“—‹•‹–‹‘‘ˆ–Š‡ƒ…Š‹‡”›‘”’Žƒ–ƒ•ƒˆ‘”‡•ƒ‹†ǡˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡
—†‡”–ƒ‹‰‘–Š‡”–Šƒˆ‘”†‹•–”‹„—–‹‘„›™ƒ›‘ˆ†‹˜‹†‡†•‘”’”‘ϐ‹–•‘”ˆ‘””‡‹––ƒ…‡‘—–•‹†‡†‹ƒ
ƒ•’”‘ϐ‹–•‘”ˆ‘”–Š‡…”‡ƒ–‹‘‘ˆƒ›ƒ••‡–‘—–•‹†‡†‹ƒǢ
„Ȍ –Š‡’ƒ”–‹…—Žƒ”•ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†„›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•‹–Š‹•„‡ŠƒŽˆǡ—†‡”…Žƒ—•‡ȋ„Ȍ‘ˆ
•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͲŠƒ˜‡„‡‡ˆ—”‹•Š‡†„›–Š‡ƒ••‡••‡‡‹”‡•’‡…–‘ˆƒ…Š‹‡”›‘”’Žƒ–ƒŽ‘‰
™‹–Š –Š‡ ”‡–—” ‘ˆ ‹…‘‡ ˆ‘” –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š •—…Š ’Žƒ– ‘”
ƒ…Š‹‡”›™ƒ•ϐ‹”•–’—––‘—•‡Ǥ

Š‡”‡ƒ›ƒ‘—–…”‡†‹–‡†–‘–Š‡’‡…‹ƒŽ…‘‘‹…‘‡‡Ǧ‹˜‡•–‡–‡•‡”˜‡……‘—–Šƒ•„‡‡—–‹Ž‹•‡†ˆ‘”ƒ›
’—”’‘•‡‘–Š‡”–Šƒ–Š‘•‡”‡ˆ‡””‡†ǡ–Š‡ƒ‘—–•‘—–‹Ž‹•‡†Ǣ‘”Šƒ•‘–„‡‡—–‹Ž‹•‡†„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡’‡”‹‘†
•’‡…‹ϐ‹‡†ǡ–Š‡ƒ‘—–‘–•‘—–‹Ž‹•‡†ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ǡ
ȋ‹Ȍ ‹ƒ…ƒ•‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ‘—–™ƒ••‘—–‹Ž‹•‡†Ǣ‘”
ȋ‹‹Ȍ ‹ƒ…ƒ•‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ„Ȍǡ‹–Š‡›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡’‡”‹‘†‘ˆ–Š”‡‡›‡ƒ”••’‡…‹ϐ‹‡†‹•—„Ǧ
…Žƒ—•‡ȋ‹Ȍ‘ˆ…Žƒ—•‡ȋƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌǡ
ƒ†•ŠƒŽŽ„‡…Šƒ”‰‡†–‘–ƒšƒ……‘”†‹‰Ž›Ǥ

‡•–”‹…–‹‘‘‘–Š‡”–ƒš„‡‡ϐ‹–•
ȋ‹Ȍ Š‡„—•‹‡••Ž‘••—†‡”•‡…–‹‘͹ʹȋͳȌ‘”Ž‘••—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ
ƒ‹•dz—†‡”•‡…–‹‘͹ͶȋͳȌǡ‹•‘ˆƒ”ƒ••—…Š
Ž‘••”‡Žƒ–‡•–‘–Š‡„—•‹‡••‘ˆ–Š‡—†‡”–ƒ‹‰ǡ„‡‹‰–Š‡‹–•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†‘”•‡–‘ˆˆǤ
ȋ‹‹Ȍ ‘”†‡”–‘…Žƒ‹†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡ–Š‡ƒ••‡••‡‡•Š‘—Ž†ˆ—”‹•Š”‡’‘”–ˆ”‘ƒŠƒ”–‡”‡†……‘—–ƒ–
‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡…‡”–‹ˆ›‹‰–Šƒ––Š‡†‡†—…–‹‘‹•…‘””‡…–Ǥ
ȋ‹‹‹Ȍ —”‹‰–Š‡’‡”‹‘†‘ˆ†‡†—…–‹‘ǡ†‡’”‡…‹ƒ–‹‘‹•†‡‡‡†–‘Šƒ˜‡„‡‡ƒŽŽ‘™‡†‘–Š‡ƒ••‡–•Ǥ”‹––‡‘™
ƒŽ—‡•ŠƒŽŽƒ……‘”†‹‰Ž›„‡”‡†—…‡†Ǥ
ȋ‹˜Ȍ ‘ †‡†—…–‹‘ —†‡” •‡…–‹‘ ͺͲǦ ƒ† ͺͲǦ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† ‹ ”‡Žƒ–‹‘ –‘ –Š‡ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ –Š‡
—†‡”–ƒ‹‰Ǥ
ȋ˜Ȍ Š‡”‡ƒ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†‹”‡Žƒ–‹‘–‘ƒ›•’‡…‹ϐ‹‡†„—•‹‡••‡Ž‹‰‹„Ž‡ˆ‘”
‹˜‡•–‡–ǦŽ‹‡† †‡†—…–‹‘ —†‡” •‡…–‹‘ ͵ͷǡ ‘ †‡†—…–‹‘ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† —†‡” •‡…–‹‘ ͵ͷ ‹
”‡Žƒ–‹‘–‘•—…Š•’‡…‹ϐ‹‡†„—•‹‡••ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”ƒ••‡••‡–›‡ƒ”Ǥ

Deduction allowable in case of amalgamation and demerger

–Š‡‡˜‡–‘ˆƒ›—†‡”–ƒ‹‰ǡ„‡‹‰–Š‡‹–™Š‹…Š‹•‡–‹–Ž‡†–‘†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡ„‡‹‰–”ƒ•ˆ‡””‡†ǡ
„‡ˆ‘”‡ –Š‡ ‡š’‹”› ‘ˆ –Š‡ ’‡”‹‘† •’‡…‹ϐ‹‡† ‹ –Š‹• •‡…–‹‘ǡ –‘ ƒ‘–Š‡” —†‡”–ƒ‹‰ǡ „‡‹‰ –Š‡ ‹– ‹ ƒ •…Š‡‡ ‘ˆ
ƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”ǡǦ
ȋƒȌ ‘ †‡†—…–‹‘ •ŠƒŽŽ „‡ ƒ†‹••‹„Ž‡ —†‡” –Š‹• •‡…–‹‘ –‘ –Š‡ ƒƒŽ‰ƒƒ–‹‰ ‘” –Š‡ †‡‡”‰‡† ‹– ˆ‘” –Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‘‘”–Š‡†‡‡”‰‡”–ƒ‡•’Žƒ…‡Ǣƒ†
ȋ„Ȍ –Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘™‘—Ž†ƒ’’Ž›–‘–Š‡ƒƒŽ‰ƒƒ–‡†‘””‡•—Ž–‹‰‹–ǡƒ•–Š‡›™‘—Ž†Šƒ˜‡ƒ’’Ž‹‡†
–‘–Š‡ƒƒŽ‰ƒƒ–‹‰‘”–Š‡†‡‡”‰‡†‹–Šƒ†–Š‡ƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”Šƒ†‘––ƒ‡’Žƒ…‡Ǥ
Lesson 3 Ȉ Incomes which do not form Part of Total Income 111

Illustration 5:
ƒŒ˜‡‡”—”„‹‡•Šƒ•ʹ—†‡”–ƒ‹‰•ǡ‘‡‹ƒƒ†‘‡‹ƒ‘”ƒŽœ‘‡ǤŠ‡•—ƒ”‹•‡†”‡•—Ž–•ƒ”‡ƒ•
—†‡”ǣ

Item SEZ Normal

‘‡•–‹…–—”‘˜‡” ͷͲ ͳʹͷ
š’‘”––—”‘˜‡” ʹͲͲ Ͳ

”‘••”‘ϐ‹– ͹ͷ ʹͷ
š’‡•‡•Ƭ‡’”‡…‹ƒ–‹‘ ͳͷ ͳͲ
‡–’”‘ϐ‹– ͸Ͳ ͳͷ
‘’—–‡–Š‡„—•‹‡••‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ

Solution:
Š‡–”‡ƒ–‡–‹•ƒ•—†‡”ǣ

‘–ƒŽ’”‘ϐ‹– 75
Less ǣš‡’–—Ȁ•ͳͲ Ͷͺ
ƒšƒ„Ž‡’”‘ϐ‹–• ʹ͹

Note:
ͳǤ ‘–ƒŽ’”‘ϐ‹–•‹•–Š‡•—‘ˆ–Š‡”‡•’‡…–‹˜‡‡–’”‘ϐ‹–•ˆ‘”„‘–Š–Š‡—‹–•
ʹǤ Š‡‡š‡’–‹‘‹•‹–Š‡’”‘’‘”–‹‘‘ˆ–Š‡‡š’‘”––—”‘˜‡”–‘–‘–ƒŽ–—”‘˜‡”
͵Ǥ –‹•ƒ••—‡†–Šƒ––Š‡…—””‡– ˆƒŽŽ•™‹–Š‹–Š‡ ‹”•–ͷ›‡ƒ”•…‘‡…‹‰ˆ”‘–Š‡›‡ƒ”‘ˆƒ—ˆƒ…–—”‡
‘ˆ‰‘‘†•Ȁ’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•„›–Š‡‹–ǡƒ•–Š‡“—ƒ–—‘ˆ†‡†—…–‹‘ƒ˜ƒ‹Žƒ„Ž‡‹•ͳͲͲΨ‘ˆ‡š’‘”–
’”‘ϐ‹–•ˆ‘”–Š‡ϐ‹”•–ͷ›‡ƒ”•ƒ†ͷͲΨˆ‘”–Š‡‡š–ͷ›‡ƒ”•ƒ†ͷͲΨ‘ˆ–Š‡‡š–ͷ›‡ƒ”•ƒ•‹•…”‡†‹–‡†–‘ƒ
•’‡…‹ƒŽ”‡•‡”˜‡ƒȀ…Ǥ
112 Lesson 3 Ȉ EP-TL

SUMMARY CHART
Lesson 3 Ȉ Incomes which do not form Part of Total Income 113

LESSON ROUND-UP

Ȉ Š‹• ‡••‘ †‹•…—••‡• –Š‡ ‰‡‡”ƒŽ ‡š‡’–‡† ‹…‘‡• ‡—‡”ƒ–‡† —†‡” •‡…–‹‘ ͳͲ ƒ† ‘–Š‡” •’‡…‹ϐ‹…
‡š‡’–‡†‹…‘‡†‡ƒŽ–—†‡”•‡…–‹‘ͳͲǡͳͲǤ
Ȉ Š‡ •…Š‡‡ ƒ’’Ž‹‡• ‘Ž› –‘ –Š‘•‡ ƒ••‡••‡‡• ȋ„‡‹‰ ƒ ‹†‹˜‹†—ƒŽǡ ƒ••‘…‹ƒ–‹‘ ‘ˆ ’‡”•‘• ‘” „‘†› ‘ˆ
‹†‹˜‹†—ƒŽ•Ȍ™Š‘Šƒ˜‡•‹—Ž–ƒ‡‘—•Ž›‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‡š…‡‡†‹‰•ǤͷǡͲͲͲƒ†‘ƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡‡š…‡‡†•–Š‡„ƒ•‹•‡š‡’–‹‘Ž‹‹–‘ˆ•ǤʹǡͷͲǡͲͲͲ‘”•Ǥ͵ǡͲͲǡͲͲͲ‘”•ǤͷǡͲͲǡͲͲͲ–Š‡…ƒ•‡ƒ›„‡Ǥ
Ȉ ‡ƒ˜‡•ƒŽƒ”›‡ƒ•–Š‡•ƒŽƒ”›ˆ‘”–Š‡’‡”‹‘†‘ˆŽ‡ƒ˜‡‘–ƒ˜ƒ‹Ž‡†„›–Š‡‡’Ž‘›‡‡ǤŠ‡‡…ƒ•Š‡–‘ˆ
ƒ……——Žƒ–‡†Ž‡ƒ˜‡…ƒ„‡ƒ––Š‡–‹‡‘ˆ”‡–‹”‡‡–‘”†—”‹‰–Š‡…‘–‹—ƒ–‹‘‘ˆ•‡”˜‹…‡Ǥ
Ȉ …ƒ•‡‘ˆƒ
‘˜‡”‡–‡’Ž‘›‡‡ǡƒ›†‡ƒ–ŠǦ…—Ǧ”‡–‹”‡‡–‰”ƒ–—‹–›”‡…‡‹˜‡†‹•™Š‘ŽŽ›‡š‡’–—†‡”
•‡…–‹‘ͳͲȋͳͲȌȋ‹ȌǤ’Ž‘›‡‡•‘ˆ•–ƒ–—–‘”›…‘”’‘”ƒ–‹‘™‹ŽŽ‘–ˆƒŽŽ—†‡”–Š‹•…ƒ–‡‰‘”›Ǥ
Ȉ ›’ƒ›‡–”‡…‡‹˜‡†ˆ”‘ƒƒ……‘—–ǡ‘’‡‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡—ƒ›ƒƒ”‹††Š‹……‘—–—Ž‡•ǡ
ʹͲͳͶƒ†‡—†‡”–Š‡
‘˜‡”‡–ƒ˜‹‰•ƒ…–ǡͳͺ͹͵‹•‡š‡’–‹…‘‡Ǥ

TEST YOURSELF
(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation)
Multiple Choice Questions (MCQs)
Š‘‘•‡–Š‡‘•–ƒ’’”‘’”‹ƒ–‡ƒ•™‡”ˆ”‘–Š‡‰‹˜‡‘’–‹‘•‹”‡•’‡…–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ͳǤ ›”‡–‘””‡˜‡—‡†‡”‹˜‡†ˆ”‘Žƒ†ƒ›„‡–”‡ƒ–‡†ƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹ˆǦ
ȋƒȌ –‹•†‡”‹˜‡†ˆ”‘Žƒ†
ȋ„Ȍ Š‡Žƒ†‹••‹–—ƒ–‡†‹†‹ƒ
ȋ…Ȍ Š‡Žƒ†‹•—•‡†ˆ‘”ƒ‰”‹…—Ž–—”ƒŽ’—”’‘•‡
ȋ†ȌŽŽ–Š‡ƒ„‘˜‡…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†Ǥ
•™‡”ǣȋ†Ȍ
ʹǤ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡‹•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡Ȅ
ȋƒȌ ‡–”‡…‡‹˜‡†ˆ”‘ƒ‰”‹…—Ž–—”ƒŽŽƒ†
ȋ„Ȍ …‘‡ˆ”‘†ƒ‹”›ˆƒ”
ȋ…Ȍ …‘‡ˆ”‘’‘—Ž–”›ˆƒ”
ȋ†Ȍ ‹˜‹†‡†ˆ”‘ƒ…‘’ƒ›‡‰ƒ‰‡†‹ƒ‰”‹…—Ž–—”‡Ǥ
•™‡”ǣȋƒȌ
͵Ǥ …‘‡‘ˆƒƒ••‡••‡‡‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ‰”‘™‹‰ƒ†ƒ—ˆƒ…–—”‹‰–‡ƒ‹†‹ƒ‹•–ƒšƒ„Ž‡–‘–Š‡
‡š–‡–‘ˆǦ
ȋƒȌ ͶͲΨ‘ˆ•—…Š‹…‘‡
ȋ„Ȍ ͸ͲΨ‘ˆ•—…Š‹…‘‡
ȋ…Ȍ ͹ͲΨ‘ˆ•—…Š‹…‘‡
ȋ†Ȍ ͵ͲΨ‘ˆ•—…Š‹…‘‡Ǥ
 •™‡”ǣȋƒȌ
ͶǤ ˆ‘Ǧƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹••ǤʹǡͲʹǡͲͲͲƒ†‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹••ǤͶͲǡͲͲͲǡ–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆƒ
‹†‹˜‹†—ƒŽƒ••‡••‡‡™‹ŽŽ„‡ȋƒ••—‹‰ƒ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǣ
ȋƒȌ ‹Ž  ȋ„Ȍ •ǤʹͲͲ
ȋ…Ȍ •ǤʹͲ͸ ȋ†Ȍ •ǤͶǡ͵ʹ͸Ǥ
•™‡”ǣȋƒȌ
114 Lesson 3 Ȉ EP-TL

ͷǤ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ††‹–‹‘ƒŽ‹…‘‡•™‹ŽŽ‘–„‡–”‡ƒ–‡†ƒ•ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡—†‡”–Š‡…‘‡Ǧ

ƒš…–ǡͳͻ͸ͳǣ
ȋƒȌ ††‹–‹‘ƒŽ‹…‘‡ˆ”‘•‡ŽŽ‹‰‰‹‡†…‘––‘ƒ•…‘’ƒ”‡†–‘—‰‹‡†…‘––‘
ȋ„Ȍ ††‹–‹‘ƒŽ‹…‘‡ˆ”‘•‡ŽŽ‹‰†”‹‡†Ǧ—’…‘ˆˆ‡‡ƒ•…‘’ƒ”‡†–‘”ƒ™…‘ˆˆ‡‡
ȋ…Ȍ ††‹–‹‘ƒŽ‹…‘‡ˆ”‘•‡ŽŽ‹‰…—”‡†–‘„ƒ……‘ƒ•…‘’ƒ”‡†–‘‰”‡‡–‘„ƒ……‘Ž‡ƒ˜‡•
ȋ†Ȍ ††‹–‹‘ƒŽ‹…‘‡ˆ”‘•‡ŽŽ‹‰†”‹‡†Ǧ—’–‡ƒŽ‡ƒ˜‡•ƒ•…‘’ƒ”‡†–‘”ƒ™–‡ƒŽ‡ƒ˜‡•Ǥ
•™‡”ǣȋƒȌ
͸Ǥ ƒ™ƒ”‡’‘”–•‡–‹…‘‡‘ˆ•ǤͷŽƒŠˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ‰”‘™‹‰ƒ†ƒ—ˆƒ…–—”‹‰”—„„‡”Ǥ‘™—…Š
‘ˆ•—…Š‹…‘‡‹•–‘„‡–”‡ƒ–‡†ƒ•‘Ǧƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ǣ
ȋƒȌ •Ǥͳǡ͹ͷǡͲͲͲ ȋ„Ȍ •ǤʹǡͲͲǡͲͲͲ
ȋ…Ȍ •ǤͳǡʹͷǡͲͲͲ ȋ†Ȍ ‹Ž
•™‡”ǣȋƒȌ•Ǥͳǡ͹ͷǡͲͲͲ
͹Ǥ ƒšŠ‘Ž‹†ƒ›—†‡”•‡…–‹‘ͳͲ‹”‡•’‡…–‘ˆ‡™Ž›‡•–ƒ„Ž‹•Š‡†—‹–•‹‹•ƒŽŽ‘™‡†ˆ‘”ƒ–‘–ƒŽ’‡”‹‘†
‘ˆȄ
ȋƒȌ ͷ‡ƒ”• ȋ„Ȍ ͳͲ‡ƒ”•
ȋ…Ȍ ͳͷ‡ƒ”• ȋ†Ȍ ʹͲ‡ƒ”•Ǥ
•™‡”ǣȋ…Ȍͳͷ‡ƒ”•Ǥ
ͺǤ ”Ǥ‹ƒ›ƒ†‡”‹˜‡†‹…‘‡ˆ”‘•ƒŽ‡‘ˆ–‡ƒƒ—ˆƒ…–—”‡†ƒ†‰”‘™‹‘‘”‰ǡƒ”ƒ–ƒƒǤ‹•‹…‘‡ˆ‘”
–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹˆ”‘–Š‡•ƒ‹†ƒ…–‹˜‹–›‹••ǤʹͲŽƒŠ•ǤŠ‡ƒ‘—–‡š‡’–ˆ”‘–ƒš„›™ƒ›‘ˆ
ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹•ǣ
ȋƒȌ •ǤͺŽƒŠ•ȋͶͲΨȌ  ȋ„Ȍ •ǤͷŽƒŠ•ȋʹͷΨȌ
ȋ…Ȍ •ǤͳʹŽƒŠ•ȋ͸ͲΨȌ  ȋ†Ȍ •Ǥ͹ŽƒŠ•ȋ͵ͷΨȌ
•™‡”ǣȋ…Ȍ•ǤͳʹŽƒŠ•ȋ͸ͲΨȌ
ͻǤ ”Ǥƒƒ””‡…‡‹˜‡†•ǤͷͲǡͲͲͲƒ•‡†—…ƒ–‹‘ƒŽ•…Š‘Žƒ”•Š‹’ˆ”‘‡Š”—‡‘”‹ƒŽ”—•–ȋƒ…Šƒ”‹–ƒ„Ž‡–”—•–ȌǤ
Š‡•…Š‘Žƒ”•Š‹’‹•–‘ƒ••‹•–”Ǥƒƒ”ˆ‘”’—”•—‹‰ǤǤȋ‹•–‘”›Ȍƒ– ƒ™ƒŠƒ”ŽƒŽ‡Š”—‹˜‡”•‹–›ǡ‡™
‡ŽŠ‹ǤŠ‡ƒ‘—–‘ˆ•…Š‘Žƒ”•Š‹’Ž‹ƒ„Ž‡–‘–ƒš‹•ǣ
ȋƒȌ •ǤͷͲǡͲͲͲ ȋ„Ȍ •ǤͳͲǡͲͲͲ
ȋ…Ȍ •ǤʹͷǡͲͲͲ ȋ†Ȍ ‹Ž
•™‡”ǣȋ†Ȍ‹Ž
ͳͲǤ ”ǤŠƒ†ƒȋƒ‰‡͹ͲȌ”‡…‡‹˜‡†•Ǥ͵ͲǡͲͲͲ‡˜‡”›‘–Š†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͳǦʹʹ‘”‡˜‡”•‡‘”–‰ƒ‰‡
‘ˆŠ‹•’”‘’‡”–›™‹–Š–ƒ–‡ƒ‘ˆ†‹ƒǤŠ‡ƒ‘—–‘ˆ”‡…‡‹’–Ž‹ƒ„Ž‡–‘–ƒš‹–Š‡Šƒ†•‘ˆ”ǤŠƒ†ƒ‹•ǣ
ȋƒȌ •Ǥ͵ǡ͸ͲǡͲͲͲ ȋ„Ȍ •ǤʹǡͷʹǡͲͲͲ
ȋ…Ȍ •ǤͶͲǡͲͲͲ  ȋ†Ȍ ‹Ž
•™‡”ǣȋ†Ȍ‹Ž
ͳͳǤ ”Ǥ ‡‘ Šƒ˜‹‰ –‡ƒ ‡•–ƒ–‡ ‹ —ƒ” ȋ‡”ƒŽƒȌ ‡ƒ”‡† •Ǥ ͷ ŽƒŠ• „› ™ƒ› ‘ˆ ‰”‘™‹‰ –‡ƒ Ž‡ƒ˜‡• ƒ†
ƒ—ˆƒ…–—”‹‰–‡ƒǤŠ‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš™‘—Ž†„‡ǣ
ȋƒȌ •ǤʹǡͲͲǡͲͲͲ ȋ„Ȍ •Ǥͳǡ͹ͷǡͲͲͲ
ȋ„Ȍ •ǤͳǡʹͷǡͲͲͲ ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋƒȌ•ǤʹǡͲͲǡͲͲͲ
Lesson 3 Ȉ Incomes which do not form Part of Total Income 115

ͳʹǤ •Ǥƒš‹”‡…‡‹˜‡†•Ǥ͸ͲǡͲͲͲ„›™ƒ›‘ˆˆƒ‹Ž›’‡•‹‘ˆ”‘–ƒ–‡
‘˜‡”‡–ǤŠ‡ƒ‘—–‘ˆˆƒ‹Ž›
’‡•‹‘‡Ž‹‰‹„Ž‡ˆ‘”‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͳͻȌ‘ˆ–Š‡…‘‡–ƒš…–ͳͻ͸ͳ‹•ǣ
ȋƒȌ •Ǥ͸ͲǡͲͲͲ  ȋ„Ȍ •ǤͶͲǡͲͲͲ
ȋ…Ȍ •ǤʹͲǡͲͲͲ  ȋ†Ȍ ‹Ž
 •™‡”ǣ•’‡”•‡…–‹‘ͳͲȋͳͻȌˆƒ‹Ž›’‡•‹‘”‡…‡‹˜‡†„›–Š‡™‹†‘™‘”…Š‹Ž†”‡‘”‘‹ƒ–‡†Š‡‹”•ǡƒ•
–Š‡…ƒ•‡ƒ›„‡ǡ‘ˆƒ‡„‡”‘ˆ–Š‡ƒ”‡†ˆ‘”…‡•ȋ‹…Ž—†‹‰’ƒ”ƒ‹Ž‹–ƒ”›ˆ‘”…‡•Ȍ‘ˆ–Š‡‹‘ǡ™Š‡”‡–Š‡
†‡ƒ–Š‘ˆ•—…Š‡„‡”Šƒ•‘……—””‡†‹–Š‡…‘—”•‡‘ˆ‘’‡”ƒ–‹‘ƒŽ†—–‹‡•ǡ‹•—…Š…‹”…—•–ƒ…‡•ƒ†•—„Œ‡…–
–‘•—…Š…‘†‹–‹‘•ǡƒ•ƒ›„‡’”‡•…”‹„‡†•ŠƒŽŽ„‡ˆ—ŽŽ›‡š‡’–‡†Ǥš‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡‘Ž›–‘—‹‘ƒ†
‘–•–ƒ–‡ǡŠ‡…‡‡š‡’–‹‘—†‡”ͳͲȋͳͻȌ‹•Ǥ
ͳ͵Ǥ ”‡‰‹•–‡”‡†–”ƒ†‡—‹‘‡ƒ”‡†‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘ϐ‹š‡††‡’‘•‹–Š‡Ž†™‹–Š–ƒ–‡ƒ‘ˆ†‹ƒ
‘ˆ•Ǥͷǡ͸ͲǡͲͲͲǤŠ‡‹–‡”‡•–‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡Šƒ†•‘ˆ–”ƒ†‡—‹‘™‘—Ž†„‡ǣ
ȋƒȌ •Ǥͷǡ͸ͲǡͲͲͲ ȋ„Ȍ ‹Ž
ȋ…Ȍ •Ǥʹǡ͸ͲǡͲͲͲ ȋ†Ȍ •Ǥ͵ǡͳͲǡͲͲͲ
•™‡”ǣȋ„Ȍ‹Ž
ͳͶǤ Š‡‹…‘‡†‡”‹˜‡†ˆ”‘‰”‘™‹‰ǡƒ—ˆƒ…–—”‹‰ƒ†•ƒŽ‡‘ˆ‡–”‹ˆ—‰‡†Žƒ–‡š‘”‡‡š‘”ƒ–‡š„ƒ•‡†
…‘’•ƒ•’‡”—Ž‡͹‘ˆ–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡͳͻ͸ʹ•ŠƒŽŽ„‡–ƒ‡ƒ•ƒ‰”‹…—Ž–—”ƒŽƒ†‘Ǧƒ‰”‹…—Ž–—”ƒŽ
‹…‘‡‹–Š‡ˆ‘ŽŽ‘™‹‰”ƒ–‹‘ǣ
ȋƒȌ ͹ͷΨƒ†ʹͷΨ ȋ„Ȍ ͸ͲΨƒ†ͶͲΨ
ȋ…Ȍ ͸ͷΨƒ†͵ͷΨ ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ͸ͷΨƒ†͵ͷΨ

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

 —–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
 —„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 —„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES (Including Websites and Video Links)

Ȉ Income Tax Act, 1961: https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Ȉ Income Tax Rules, 1962: https://www.incometaxindia.gov.in/Pages/rules/income-tax-rules-1962. aspx
Ȉ Circulars: https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
116 Lesson 3 Ȉ EP-TL
 Computation of Income under various Heads
Lesson 4 Part I – Income under the Head “Salaries”

Key Concepts One Learning Objectives Regulatory

Should Know
To understand Framework
Ȉ ƒŽƒ”›
Ȉ Š‡ƒ•‹•‘ˆŠƒ”‰‡‘ˆ Income Tax Act,
Ȉ ŽŽ‘™ƒ…‡ Sections
…‘‡—†‡”–Š‡Š‡ƒ† 1961
Ȉ ‡”“—‹•‹–‡• ƒŽƒ”›Ǥ ‡…–‹‘ͳͷ ƒ•‹•‘ˆŠƒ”‰‡
Ȉ –ƒ†ƒ”†‡†—…–‹‘ Ȉ Š‡…‘’—–ƒ–‹‘‘ˆ ‡…–‹‘ͳ͹ȋͳȌ ƒŽƒ”›
–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ ‡…–‹‘ͳͲȋͳ͵Ȍ ‘—•‡‡–
ŽŽ‘™ƒ…‡•ǡ‡”“—‹•‹–‡•ǡ ŽŽ‘™ƒ…‡
”‘ϐ‹–‹Ž‹‡—‘ˆƒŽƒ”›Ǥ ‡…–‹‘ͳͲȋͳͶȌ ’‡…‹ƒŽŽŽ‘™ƒ…‡•
Ȉ Š‡†‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡ ‡…–‹‘ͳͲȋͳͲȌ ‘—–‡†‡•‹‘
—†‡”–Š‡Š‡ƒ†ƒŽƒ”›Ǥ ‡…–‹‘ͳͲȋͳͲȌ
”ƒ–—‹–›
Ȉ Š‡‘’—–ƒ–‹‘‘ˆ ‡…–‹‘ͳͲȋͳͲȌ ‡ƒ˜‡…ƒ•Š‡–
…‘‡—†‡”–Š‡Š‡ƒ†
‡…–‹‘ͳ͹ȋʹȌ ƒŽ—ƒ–‹‘‘ˆ
ƒŽƒ”›Ǥ ‡”“—‹•‹–‡•
‡…–‹‘ͳ͹ȋ͵Ȍ ”‘ϐ‹–•‹Ž‹‡—‘ˆ
ƒŽƒ”›
‡…–‹‘ͺͻ ‡Ž‹‡ˆ™Š‡•ƒŽƒ”›
‹•’ƒ‹†‹ƒ””‡ƒ”•‘”
ƒ†˜ƒ…‡
‡…–‹‘ͳ͸ȋ‹ƒȌ –ƒ†ƒ”†
‡†—…–‹‘
‡…–‹‘ͳ͸ȋ‹‹Ȍ –‡”–ƒ‹‡–
ŽŽ‘™ƒ…‡
‡…–‹‘ͳ͸ȋ‹‹‹Ȍ ”‘ˆ‡••‹‘ƒŽƒš

Lesson Outline
Ȉ Introduction ‡…‡‹˜‡†ˆ”‘–Š‡”‘˜‹†‡–
Fund
Ȉ ’ƒ…–‘ˆ‡…–‹‘ͳͳͷ
—†‡”–Š‡Š‡ƒ†ƒŽƒ”› Ȉ ‡Ž‹‡ˆ™Š‡ƒŽƒ”›‹•’ƒ‹†‹
ƒ””‡ƒ”•‘”ƒ†˜ƒ…‡
Ȉ ƒ•‹•‘ˆŠƒ”‰‡
Ȉ ‡†—…–‹‘•ƒŽŽ‘™‡†ˆ”‘
Ȉ ƒŽƒ”› ƒŽƒ”‹‡•
Ȉ ŽŽ‘™ƒ…‡• Ȉ ‘’—–ƒ–‹‘‘ˆƒŽƒ”›
Ȉ ‡–‹”‡‡–‡‡ϐ‹–• Ȉ 
Ȉ ‡”“—‹•‹–‡• Ȉ ǧ
ȋȌ ƒšǦˆ”‡‡’‡”“—‹•‹–‡• Ȉ 
ȋȌ ƒšƒ„Ž‡’‡”“—‹•‹–‡• Ȉ   

Ȉ ”‘˜‹†‡–ˆ—†•Ǧ”‡ƒ–‡–‘ˆ Ȉ  

‘–”‹„—–‹‘•–‘ƒ†‘‡›
 118 Lesson 4 Ȉ EP-TL

INTRODUCTION
Š‡’”‘˜‹•‹‘•”‡Žƒ–‡†–‘DzƒŽƒ”‹‡•dzƒ”‡…‘–ƒ‹‡†ƒ•—†‡”ǣ

Šƒ”‰‡ƒ„‹Ž‹–›
ȋ‡…–‹‘ͳͷȌ

‡†—…–‹‘•
ȋ‡…–‹‘ͳ͸Ȍ

‘•–‹–—‡–•
ȋ‡…–‹‘ͳ͹Ȍ

Š‡‘•–ˆ—†ƒ‡–ƒŽ‘ˆƒŽŽƒ•’‡…–•‹•–‘‘™–Šƒ–‹–‹•ƒ’”‡Ǧ”‡“—‹•‹–‡–Šƒ–ƒemployer-employee relationship
‡š‹•–•ǡƒ†–Šƒ–‹•–Š‡’”‡‹•‡„ƒ•‹•™Š‹…Š–Š‡…‘‡…ƒ„‡…Šƒ”‰‡†ƒ•DzƒŽƒ”‹‡•dzǤ–‹•ƒŽ•‘‹’‘”–ƒ––‘‘–‡–Šƒ–
–Š‡‡’Ž‘›‡–…‘—Ž†„‡ˆ—ŽŽ–‹‡‘”’ƒ”––‹‡ǡ–Šƒ–”‡ƒŽŽ›†‘‡•ǯ–ƒ––‡”ǡ™Šƒ–ƒ––‡”•‹•–Šƒ––Š‡”‡Žƒ–‹‘•Š‹’
•Š‘—Ž†„‡employer-employeeǤ
Š‡ “—‡•–‹‘ ™Š‡–Š‡” ƒ ’ƒ”–‹…—Žƒ” ’‡”•‘ ”‡…‡‹˜‡• –Š‡ ‹…‘‡ ‹ Š‹• …ƒ’ƒ…‹–› ƒ• ƒ ‡’Ž‘›‡‡ ‘” ‘– Šƒ• –‘ „‡
†‡…‹†‡†ˆ”‘–Š‡ˆƒ…–•‘ˆ‡ƒ…Š…ƒ•‡Ǥ
‡–ǯ•‡šƒ‹‡–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǡ™Š‡–Š‡”’ƒ›‡–•ƒ”‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”‹‡•Ǣ
(i) Professorǣ Š‡ ’”‘ˆ‡••‘” ‘ˆ —‹˜‡”•‹–› ™‘—Ž† „‡ ”‡…‡‹˜‹‰ ‹…‘‡ „› ™ƒ› ‘ˆ ‘–ŠŽ› •ƒŽƒ”› ˆ”‘ –Š‡
—‹˜‡”•‹–› ™Š‹…Š ‹• …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš —†‡” –Š‹• Š‡ƒ†Ǥ —– –Š‹• †‘‡• ‘– ‡ƒ –Šƒ– ‡˜‡”› ‹–‡ ‘ˆ ‹…‘‡
”‡…‡‹˜‡† „› –Š‡ ‡’Ž‘›‡‡ ˆ”‘ Š‹• ‡’Ž‘›‡” ™‘—Ž† „‡ –ƒšƒ„Ž‡ —†‡” –Š‹• Š‡ƒ†Ǥ Š—•ǡ ‹…‘‡ „› ™ƒ› ‘ˆ
‡šƒ‹‡”•Š‹’ˆ‡‡•”‡…‡‹˜‡†„›ƒ’”‘ˆ‡••‘”ˆ”‘–Š‡•ƒ‡—‹˜‡”•‹–›‹™Š‹…ŠŠ‡‹•‡’Ž‘›‡†™‘—Ž†‘–„‡
…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‹•Š‡ƒ†„—–—•–„‡–ƒš‡†ƒ•…‘‡ˆ”‘‘–Š‡”•‘—”…‡•—†‡”‡…–‹‘ͷ͸ǤŠ‹•‹•
„‡…ƒ—•‡‘ˆ–Š‡ˆƒ…––Šƒ––Š‡‡••‡–‹ƒŽ…‘†‹–‹‘–Šƒ––Š‡‹…‘‡‹“—‡•–‹‘—•–„‡”‡…‡‹˜‡†ˆ‘”•‡”˜‹…‡•
”‡†‡”‡†‹–Š‡‘”†‹ƒ”›…‘—”•‡‘ˆ‡’Ž‘›‡–™‘—Ž†‘–„‡ˆ—Žϐ‹ŽŽ‡†‹–Š‡…ƒ•‡‘ˆ‡šƒ‹‡”•Š‹’ˆ‡‡•Ǥ
(ii) Directorǣ†‹”‡…–‘”‘ˆƒ…‘’ƒ›ƒ›ǡ‹•‘‡…ƒ•‡•ǡ„‡ƒ‡’Ž‘›‡‡‘ˆƒ…‘’ƒ›™Š‡”‡–Š‡”‡‹•ƒ•’‡…‹ϐ‹…
…‘–”ƒ…–‘ˆ‡’Ž‘›‡–„‡–™‡‡Š‹ƒ†–Š‡…‘’ƒ›ǤŠ‡ˆƒ…––Šƒ––Š‡•ƒ‡’‡”•‘Šƒ•†—ƒŽ…ƒ’ƒ…‹–›‹Š‹•
”‡Žƒ–‹‘•Š‹’™‹–Š–Š‡…‘’ƒ›†‘‡•‘–‡ƒ–Šƒ–Š‡…ƒ‘–„‡–ƒš‡†—†‡”–Š‹•Š‡ƒ†Ǥ˜‡”›‹–‡‘ˆ‹…‘‡
ƒ”‹•‹‰–‘•—…Šƒ†‹”‡…–‘”™Š‘‹•ƒŽ•‘ƒ‡’Ž‘›‡‡‘ˆ–Š‡…‘’ƒ›ȋ‡Ǥ‰Ǥƒƒƒ‰‹‰†‹”‡…–‘”‘”‘–Š‡”™Š‘Ž‡Ǧ
–‹‡†‹”‡…–‘”Ȍ„›˜‹”–—‡‘ˆŠ‹•‡’Ž‘›‡–™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•Š‹•‹…‘‡ˆ”‘•ƒŽƒ”›ǤŠ—•ǡ‹…‘‡„›™ƒ›
‘ˆ”‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›ƒƒƒ‰‹‰†‹”‡…–‘”™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•Š‹••ƒŽƒ”›‹…‘‡™Š‡”‡ƒ•–Š‡‹…‘‡
”‡…‡‹˜‡†„›Š‹ƒ•†‹”‡…–‘”ǯ•ˆ‡‡•‹Š‹•…ƒ’ƒ…‹–›ƒ•†‹”‡…–‘”ˆ‘”ƒ––‡†‹‰–Š‡‡‡–‹‰•‘ˆ–Š‡‘ƒ”†™‘—Ž†„‡
ƒ••‡••ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǤ
ȋ‹‹‹Ȍ ˆϐ‹…‹ƒŽ‹“—‹†ƒ–‘”ǣ‘ˆϐ‹…‹ƒŽŽ‹“—‹†ƒ–‘”ƒ’’‘‹–‡†„›–Š‡‘—”–‘”„›–Š‡‡–”ƒŽ
‘˜‡”‡–™‘—Ž†ƒŽ•‘
„‡…‘‡ƒ‡’Ž‘›‡‡‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”–Š‡‘’ƒ‹‡•…–ǡƒ†…‘•‡“—‡–Ž›–Š‡”‡—‡”ƒ–‹‘
†—‡–‘Š‹™‘—Ž†ƒŽ•‘„‡ƒ••‡••ƒ„Ž‡—†‡”–Š‡Š‡ƒ†ǮƒŽƒ”‹‡•ǯǤ
(iv) Managerǣ‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›ƒƒƒ‰‡”‘ˆƒ…‘’ƒ›‡˜‡‹ˆŠ‡‹•™”‘‰Ž›†‡•‹‰ƒ–‡†ƒ•ƒ†‹”‡…–‘”
‘”„›ƒ›‘–Š‡”ƒ‡™‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‹•Š‡ƒ†”‡‰ƒ”†Ž‡••‘ˆ–Š‡ˆƒ…––Šƒ––Š‡ƒ‘—–‹•
’ƒ›ƒ„Ž‡–‘Š‹‘–ŠŽ›‘”‹•…ƒŽ…—Žƒ–‡†ƒ–ƒ…‡”–ƒ‹’‡”…‡–ƒ‰‡‘ˆ–Š‡…‘’ƒ›ǯ•’”‘ϐ‹–•Ǥ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 119

(v) Partner of a Firmǣ ƒŽƒ”› ’ƒ‹† –‘ ƒ ’ƒ”–‡” „› ƒ ϐ‹” ‹• ‘–Š‹‰ „—– ƒ’’”‘’”‹ƒ–‹‘ ‘ˆ ’”‘ϐ‹–•Ǥ › •ƒŽƒ”›ǡ
„‘—•ǡ…‘‹••‹‘ǡ‘””‡—‡”ƒ–‹‘„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡††—‡–‘‘””‡…‡‹˜‡†„›’ƒ”–‡”‘ˆƒϐ‹”•ŠƒŽŽ
‘–„‡”‡‰ƒ”†‡†ƒ••ƒŽƒ”›„—–Šƒ•–‘„‡…Šƒ”‰‡†ƒ•‹…‘‡ˆ”‘„—•‹‡••Ǥ–‹•„‡…ƒ—•‡‘ˆ–Š‡ˆƒ…––Šƒ––Š‡
”‡Žƒ–‹‘•Š‹’„‡–™‡‡–Š‡ϐ‹”ƒ†‹–•’ƒ”–‡”‹•‘–‘ˆ‡’Ž‘›‡”ƒ†‡’Ž‘›‡‡Ǥ
(vi) Member of Parliamentǣ ……‘”†‹‰ –‘ ƒ …‹”…—Žƒ” ‘ˆ –Š‡ ‘ƒ”† †ƒ–‡† ʹʹǦͷǦͳͻ͸͹ǡ –Š‡ •ƒŽƒ”› ”‡…‡‹˜‡† „› ƒ
’‡”•‘ ƒ• ‡„‡” ‘ˆ ƒ”Ž‹ƒ‡– ™‹ŽŽ ‘– „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ ‹…‘‡Ǧ–ƒš —†‡” –Š‡ Š‡ƒ† DzƒŽƒ”‹‡•dz „—– ƒ•
Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dz„‡…ƒ—•‡ƒ‡„‡”‘ˆƒ”Ž‹ƒ‡–‹•‘–ƒ‡’Ž‘›‡‡‘ˆ–Š‡
‘˜‡”‡–„—–‘Ž›
ƒ‡Ž‡…–‡†”‡’”‡•‡–ƒ–‹˜‡‘ˆ–Š‡’‡‘’Ž‡Ǥ
(vii) Treasurer of a BankǣŠ‡‹…‘‡”‡…‡‹˜‡†„›ƒ–”‡ƒ•—”‡”‘ˆƒ„ƒ™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•Š‹••ƒŽƒ”›‹…‘‡‹ˆ
–Š‡–”‡ƒ•—”‡”‹•ƒ‡’Ž‘›‡‡‘ˆ–Š‡„ƒǤˆŠ‡†‘‡•‘–Šƒ’’‡–‘„‡ƒ‡’Ž‘›‡‡ǡ–Š‡‹…‘‡”‡…‡‹˜‡†„›
Š‹™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǤ ‘”–Š‹•’—”’‘•‡ǡ–Š‡“—‡•–‹‘™Š‡–Š‡”‹ƒ’ƒ”–‹…—Žƒ”
…ƒ•‡–Š‡–”‡ƒ•—”‡”‹•ƒ‡’Ž‘›‡‡‘”‘–Šƒ•–‘„‡†‡…‹†‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡ˆƒ…–•ƒ†…‹”…—•–ƒ…‡•‘ˆ‡ƒ…Š
…ƒ•‡Šƒ˜‹‰†—‡”‡‰ƒ”†–‘Š‹•’‘™‡”•ǡ”‡•’‘•‹„‹Ž‹–‹‡•ƒ†ˆ—…–‹‘•Ǥ
(viii) Person carrying on a Profession or Vocationǣ…‘‡†‡”‹˜‡†„›ƒ›’‡”•‘ˆ”‘…ƒ””›‹‰‘ƒ’”‘ˆ‡••‹‘
‘”˜‘…ƒ–‹‘—•–„‡–ƒš‡†ƒ•„—•‹‡••‹…‘‡ƒ†‘–ƒ••ƒŽƒ”›‹…‘‡„‡…ƒ—•‡‡’Ž‘›‡–‹•†‹ˆˆ‡”‡–ˆ”‘
’”‘ˆ‡••‹‘Ǥ
(ix) Income from tips™‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡•ƒ•‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǡƒ••—…Š
–‹’•„‡‹‰”‡…‡‹˜‡†ˆ”‘…—•–‘‡”•ƒ†‘–ˆ”‘–Š‡‡’Ž‘›‡”ǡ‡…–‹‘ͳͻʹȋ‘ƒŽƒ”›…‘‡Ȍ™‘—Ž†
‘–‰‡–ƒ––”ƒ…–‡†Ǥ–†Ǥ
—”‰ƒ‘•‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšȋȌȋȌǤ
(x) Salaries received by Judges‹•–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”‹‡•‡˜‡–Š‘—‰Š–Š‡›Šƒ˜‡‘‡’Ž‘›‡”Ǥ [Justice
Deoki Nandan Agarwala Vs Union of India (SC)]
—–ǡ‹ˆƒ‡’Ž‘›‡‡”‡…‡‹˜‡•ƒ›‘‡›ˆ”‘Š‹•‡’Ž‘›‡”ƒ•’ƒ”–‘ˆ–Š‡–‡”•‘ˆ‡’Ž‘›‡–ˆ‘”‘–…ƒ””›‹‰‘
ƒ›’”‘ˆ‡••‹‘ǡ•—…Š‹…‘‡—•–„‡–ƒš‡†ƒ••ƒŽƒ”›‹…‘‡Ǥ ‘”‹•–ƒ…‡ǡ–Š‡ƒŽŽ‘™ƒ…‡‰‹˜‡„›‡’Ž‘›‡”–‘ƒ
†‘…–‘”‡’Ž‘›‡†„›Š‹ˆ‘”‘–…ƒ””›‹‰‘ƒ’”‘ˆ‡••‹‘‹ƒ††‹–‹‘–‘–Š‡‡’Ž‘›‡–™‘—Ž†„‡‹…‘‡ƒ”‹•‹‰
ˆ”‘‡’Ž‘›‡–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡–‡”•ƒ†…‘†‹–‹‘•‘ˆ•—…Š‡’Ž‘›‡–ƒ†—•–ǡ–Š‡”‡ˆ‘”‡ǡ„‡–ƒš‡†
ƒ••ƒŽƒ”›‹…‘‡Ǥˆƒ‡’Ž‘›‡‡‰‡–•‘‡›ˆ”‘’‡”•‘•‘–Š‡”–ŠƒŠ‹•‡’Ž‘›‡”ƒ†‹ˆ•—…Š‘‡›‹•‘–‹ƒ›
™ƒ›”‡Žƒ–‡†–‘–Š‡…‘–”ƒ…–‘ˆ•‡”˜‹…‡•™‹–Š–Š‡‡’Ž‘›‡”—†‡”™Š‘Š‡‹•™‘”‹‰ǡ–Š‡”‡…‡‹’–•ǡ‹ˆ–ƒšƒ„Ž‡ƒ•
‹…‘‡ǡ—•–„‡ƒ••‡••‡†—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǤ
‘™‡˜‡”ǡ ‰”ƒ–—‹–›ǡ „‘—•ǡ …‘‹••‹‘ ‘” ‘–Š‡” ‹–‡• ‘ˆ ’ƒ›‡– ƒ†‡ „› –Š‡ ‡’Ž‘›‡” ™‹–Š‘—– ƒ› •’‡…‹ϐ‹…
•–‹’—Žƒ–‹‘‹–Š‡…‘–”ƒ…–‘ˆ‡’Ž‘›‡––‘–Š‹•‡ˆˆ‡…–ǡ™‘—Ž†•–‹ŽŽ„‡–ƒšƒ„Ž‡ƒ••ƒŽƒ”›ǡ„‡…ƒ—•‡–Š‡›ƒ”‡’ƒ‹†„›–Š‡
‡’Ž‘›‡” ˆ‘” –Š‡ •‡”˜‹…‡• ”‡†‡”‡† „› –Š‡ ‡’Ž‘›‡‡Ǥ Š‡ ˆƒ…– –Šƒ– •—…Š ’ƒ›‡–• ƒ”‡ ˜‘Ž—–ƒ”› ƒ† ‹ …‡”–ƒ‹
…‹”…—•–ƒ…‡•ƒ›“—ƒŽ‹ˆ›ˆ‘”‡š‡’–‹‘ˆ”‘‹…‘‡Ǧ–ƒš‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡ǡ™‘—Ž†‘–ƒˆˆ‡…––Š‡‹…‘‡
„‡‹‰…‘’—–‡†—†‡”–Š‡Š‡ƒ†•ƒŽƒ”›Ǥ
 ͳͳͷ
Finƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”†‹˜‹†—ƒŽ•ƒ† •—Ȁ•ͳͳͷ‘ˆ–Š‡…‘‡
ƒš…–ǡͳͻ͸ͳ™Ǥ‡ǤˆǤʹͳǦʹʹ–‘’”‘˜‹†‡ˆ‘”…‘…‡••‹‘ƒŽ”ƒ–‡‘ˆŽƒ„ƒ–‡•–‘„‡ƒ’’Ž‹‡†‘‘–ƒŽ…‘‡…ƒŽ…—Žƒ–‡†
™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ
‡…‡ǡˆ”‘ʹͲʹͳǦʹʹ‘” ʹͲʹͲǦʹͳǡ–Š‡”‡ƒ”‡–™‘‘’‡”ƒ–‹˜‡–ƒš•›•–‡•Ȃ
ͳǤ ‡‹•–Š‡š‹•–‹‰–ƒš•›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš
”ƒ–‡•ƒ”‡ƒ•’‡”–Š‡Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
ʹǤ Š‡•‡…‘†‘‡‹••‡…–‹‘ͳͳͷ™Š‹…Š‹•ƒ’–‹‘ƒŽƒš›•–‡ƒ†—†‡”™Š‹…Šƒ›†‡†—…–‹‘•ƒ†
‡š‡’–‹‘•Šƒ˜‡‘–„‡‡ƒŽŽ‘™‡†„—–Ž‘™‡”•Žƒ„–ƒš”ƒ–‡•ƒ”‡’”‘˜‹†‡†‹–Š‡•‡…–‹‘ͳͳͷ‹–•‡ŽˆǤ
†‹˜‹†—ƒŽƒ† ‘’–‹‰ˆ‘”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷǣŠ‡†‡†—…–‹‘—†‡”Šƒ’–‡”Ǧ
‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͺͲ‘”•‡…–‹‘ͺͲ Ǣ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡†‹˜‹†—ƒŽƒ†
 ‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ
ƒ›‡š‡’–‹‘•Ƭ†‡†—…–‹‘ƒ”‡‘–ƒŽŽ‘™‡†—†‡”–Š‡‡™–ƒš•›•–‡ǤŠ‡„‡Ž‘™…Šƒ”–…‘–ƒ‹•–Š‡‡š‡’–‹‘•
ƒ††‡†—…–‹‘‘–ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡‡™•›•–‡”‡Žƒ–‡†–‘…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”›Ǥ‹‹Žƒ”Ž›ǡ†‡†—…–‹‘•Ƭ
 120 Lesson 4 Ȉ EP-TL

‡š‡’–‹‘•‘–ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡‡™–ƒš•›•–‡ƒ†™Š‹…Šƒ”‡”‡Žƒ–‡†–‘‘–Š‡”Š‡ƒ†•ƒ”‡’”‘˜‹†‡†‹‘–Š‡”…Šƒ’–‡”•Ǥ

Sr. Nature of Exemption/Deduction Relating to Salaries New System Existing

No. of Tax u/s system of Tax
115BAC
A RETIREMENT BENEFITS EXEMPTIONS
‡ƒ˜‡ƒŽƒ”›—Ȁ•ͳͲȋͳͲȌ ŽŽ‘™‡† ŽŽ‘™‡†

”ƒ–—‹–›—Ȁ•ͳͲȋͳͲȌ ŽŽ‘™‡† ŽŽ‘™‡†
‘—–ƒ–‹‘‘ˆ‡•‹‘—Ȁ•ͳͲȋͳͲȌ ŽŽ‘™‡† ŽŽ‘™‡†
‡–”‡…Š‡–‘’‡•ƒ–‹‘—Ȁ•ͳͲȋͳͲȌ ŽŽ‘™‡† ŽŽ‘™‡†
‘’‡•ƒ–‹‘—Ȁ•ͳͲȋͳͲȌ ŽŽ‘™‡† ŽŽ‘™‡†
‡ƒ˜‡”ƒ˜‡Ž‘…‡••‹‘—Ȁ•ͳͲȋͷȌ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
B 
š‡’–‹‘—Ȁ•ͳͲȋͳ͵Ȍƒ†—Ž‡ʹˆ”‘‘—•‡‡–ŽŽ‘™ƒ…‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
1. Exemption u/s 10(14)(i) and Rule 2BB
”ƒ˜‡ŽŽ‹‰ŽŽ‘™ƒ…‡ ŽŽ‘™‡† ŽŽ‘™‡†
‘˜‡›ƒ…‡ŽŽ‘™ƒ…‡ ŽŽ‘™‡† ŽŽ‘™‡†
ƒ‹Ž›ŽŽ‘™ƒ…‡ ŽŽ‘™‡† ŽŽ‘™‡†
‡Ž’‡”ŽŽ‘™ƒ…‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
›ƒŽŽ‘™ƒ…‡‰”ƒ–‡†ˆ‘”‡…‘—”ƒ‰‹‰–Š‡ƒ…ƒ†‡‹…ǡ”‡•‡ƒ”…Šƒ† ‘–ŽŽ‘™‡† ŽŽ‘™‡†
–”ƒ‹‹‰’—”•—‹–•‹‡†—…ƒ–‹‘ƒŽƒ†”‡•‡ƒ”…Š‹•–‹–—–‹‘•
‹ˆ‘”ŽŽ‘™ƒ…‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
ʹǤ Exemption u/s 10(14)(ii) and Rule 2BB
Š‹Ž†”‡†—…ƒ–‹‘ŽŽ‘™ƒ…‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
‘•–‡Žš’‡†‹–—”‡ŽŽ‘™ƒ…‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
”‹„ƒŽ”‡ƒŽŽ‘™ƒ…‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
”ƒ•’‘”–ŽŽ‘™ƒ…‡–‘ƒ†‹…ƒ’’‡†Ȁ‡ƒˆȀ—„ȀŽ‹†‡’Ž‘›‡‡ ŽŽ‘™‡† ŽŽ‘™‡†
”ƒ•’‘”–ŽŽ‘™ƒ…‡–‘‘–Š‡”–Šƒƒ„‘˜‡‡’Ž‘›‡‡• ‘–ŽŽ‘™‡† ‘–ŽŽ‘™‡†
C ‡”“—‹•‹–‡•
”‡‡ˆ‘‘†ƒ†„‡˜‡”ƒ‰‡–Š”‘—‰Š˜‘—…Š‡”•’”‘˜‹†‡†–‘–Š‡‡’Ž‘›‡‡ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
—’–‘ͷͲȀ‡ƒŽȀ‡ƒƬ•ƒ…•
–Š‡”š‡’–‹‘•ˆ”‘’‡”“—‹•‹–‡•‡Ǥ‰Ǥ•‡‘ˆ‘’—–‡”•ǡƒ’–‘’• ‡–… ŽŽ‘™‡† ŽŽ‘™‡†
D Deductions u/s 16
–ƒ†ƒ”†‡†—…–‹‘—Ȁ•ͳ͸ȋ‹ƒȌ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
–‡”–ƒ‹‡–ŽŽ‘™ƒ…‡—Ȁ•ͳ͸ȋ‹‹Ȍ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
”‘ˆ‡••‹‘ƒŽƒš—Ȁ•ͳ͸ȋ‹‹‹Ȍ ‘–ŽŽ‘™‡† ŽŽ‘™‡†

Žƒ”‹ϐ‹…ƒ–‹‘ ‹ ”‡•’‡…– ‘ˆ ‘’–‹‘ —†‡” •‡…–‹‘ ͳͳͷ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–ǡ ͳͻ͸ͳ ȏ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ
38/2020]‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǡ‹•‡”–‡†„›–Š‡ ‹ƒ…‡…–ǡʹͲʹͲ™Ǥ‡ǤˆǤ–Š‡ƒ••‡••‡–›‡ƒ”
ʹͲʹͳǦʹʹǡ‹–‡”ƒŽ‹ƒǡ’”‘˜‹†‡•–Šƒ–ƒ’‡”•‘ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›Šƒ˜‹‰‹…‘‡‘–Š‡”
–Šƒ‹…‘‡ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘ǡƒ›‡š‡”…‹•‡‘’–‹‘‹”‡•’‡…–‘ˆƒ’”‡˜‹‘—•›‡ƒ”–‘„‡–ƒš‡†—†‡”–Š‡
•ƒ‹†•‡…–‹‘ͳͳͷƒŽ‘‰™‹–ŠŠ‹•”‡–—”‘ˆ‹…‘‡–‘„‡ˆ—”‹•Š‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…–
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 121

ˆ‘”‡ƒ…Š›‡ƒ”ǤŠ‡…‘…‡••‹‘ƒŽ”ƒ–‡’”‘˜‹†‡†—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–‹••—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡
–‘–ƒŽ‹…‘‡•ŠƒŽŽ„‡…‘’—–‡†™‹–Š‘—–•’‡…‹ϐ‹‡†‡š‡’–‹‘‘”†‡†—…–‹‘ǡ•‡–Ǧ‘ˆˆ‘ˆŽ‘••ƒ†ƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘Ǥ
‡’”‡•‡–ƒ–‹‘•‡š’”‡••‹‰…‘…‡””‡‰ƒ”†‹‰–ƒš–‘„‡†‡†—…–‡†ƒ–•‘—”…‡ȋȌŠƒ˜‡„‡‡”‡…‡‹˜‡†•–ƒ–‹‰–Šƒ–
ƒ•–Š‡‘’–‹‘‹•”‡“—‹”‡†–‘„‡‡š‡”…‹•‡†ƒ––Š‡–‹‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”ǡ–Š‡†‡†—…–‘”ǡ„‡‹‰ƒ‡’Ž‘›‡”ǡ™‘—Ž†‘–
‘™‹ˆ–Š‡’‡”•‘ǡ„‡‹‰ƒ‡’Ž‘›‡‡ǡ™‘—Ž†‘’–ˆ‘”–ƒšƒ–‹‘—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–‘”‘–Ǥ‡…‡ǡ–Š‡”‡
‹•Žƒ…‘ˆ…Žƒ”‹–›™Š‡–Š‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–ƒ”‡–‘„‡…‘•‹†‡”‡†ƒ––Š‡–‹‡‘ˆ†‡†—…–‹‰–ƒšǤ
‘”†‡”–‘ƒ˜‘‹†–Š‡‰‡—‹‡Šƒ”†•Š‹’‹•—…Š…ƒ•‡•ǡ–Š‡‘ƒ”†ǡ‹‡š‡”…‹•‡‘ˆ’‘™‡”•…‘ˆ‡””‡†—†‡”•‡…–‹‘ͳͳͻ
‘ˆ–Š‡…–ǡŠ‡”‡„›…Žƒ”‹ϐ‹‡•–Šƒ–ƒ‡’Ž‘›‡‡ǡŠƒ˜‹‰‹…‘‡‘–Š‡”–Šƒ–Š‡‹…‘‡—†‡”–Š‡Š‡ƒ†Dz’”‘ϐ‹–ƒ†‰ƒ‹•
‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz ƒ† ‹–‡†‹‰ –‘ ‘’– ˆ‘”–Š‡ …‘…‡••‹‘ƒŽ”ƒ–‡ —†‡”•‡…–‹‘ͳͳͷ ‘ˆ–Š‡ …–ǡ ƒ›
‹–‹ƒ–‡–Š‡†‡†—…–‘”ǡ„‡‹‰Š‹•‡’Ž‘›‡”ǡ‘ˆ•—…Š‹–‡–‹‘ˆ‘”‡ƒ…Š’”‡˜‹‘—•›‡ƒ”ƒ†—’‘•—…Š‹–‹ƒ–‹‘ǡ–Š‡
†‡†—…–‘” •ŠƒŽŽ …‘’—–‡ Š‹• –‘–ƒŽ ‹…‘‡ǡ ƒ† ƒ‡  –Š‡”‡‘ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘
ͳͳͷ‘ˆ–Š‡…–Ǥˆ•—…Š‹–‹ƒ–‹‘‹•‘–ƒ†‡„›–Š‡‡’Ž‘›‡‡ǡ–Š‡‡’Ž‘›‡”•ŠƒŽŽƒ‡™‹–Š‘—–…‘•‹†‡”‹‰
–Š‡’”‘˜‹•‹‘‘ˆ•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–Ǥ
–‹•ƒŽ•‘…Žƒ”‹ϐ‹‡†–Šƒ––Š‡‹–‹ƒ–‹‘•‘ƒ†‡–‘–Š‡†‡†—…–‘”•ŠƒŽŽ„‡‘Ž›ˆ‘”–Š‡’—”’‘•‡•‘ˆ†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”ƒ†…ƒ‘–„‡‘†‹ϐ‹‡††—”‹‰–Šƒ–›‡ƒ”Ǥ‘™‡˜‡”ǡ–Š‡‹–‹ƒ–‹‘™‘—Ž†‘–ƒ‘—––‘‡š‡”…‹•‹‰
‘’–‹‘‹–‡”•‘ˆ•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–ƒ†–Š‡’‡”•‘•ŠƒŽŽ„‡”‡“—‹”‡†–‘†‘•‘ƒŽ‘‰™‹–Š
–Š‡”‡–—”–‘„‡ˆ—”‹•Š‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…–ˆ‘”–Šƒ–’”‡˜‹‘—•›‡ƒ”ǤŠ—•ǡ‘’–‹‘ƒ––Š‡
–‹‡ ‘ˆ ϐ‹Ž‹‰ ‘ˆ ”‡–—” ‘ˆ ‹…‘‡ —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ͳ͵ͻ ‘ˆ –Š‡ …– …‘—Ž† „‡ †‹ˆˆ‡”‡– ˆ”‘ –Š‡
‹–‹ƒ–‹‘ƒ†‡„›•—…Š‡’Ž‘›‡‡–‘–Š‡‡’Ž‘›‡”ˆ‘”–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
—”–Š‡”ǡ‹…ƒ•‡‘ˆƒ’‡”•‘™Š‘Šƒ•‹…‘‡—†‡”–Š‡Š‡ƒ†Dz’”‘ϐ‹–ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzƒŽ•‘ǡ–Š‡
‘’–‹‘ˆ‘”–ƒšƒ–‹‘—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…–‘…‡‡š‡”…‹•‡†ˆ‘”ƒ’”‡˜‹‘—•›‡ƒ”ƒ––Š‡–‹‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”
‘ˆ‹…‘‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…–…ƒ‘–„‡…Šƒ‰‡†ˆ‘”•—„•‡“—‡–’”‡˜‹‘—•›‡ƒ”•‡š…‡’–
‹…‡”–ƒ‹…‹”…—•–ƒ…‡•Ǥ
……‘”†‹‰Ž›ǡ –Š‡ ƒ„‘˜‡ …Žƒ”‹ϐ‹…ƒ–‹‘ ™‘—Ž† ƒ’’Ž› –‘ •—…Š ’‡”•‘ ™‹–Š ƒ ‘†‹ϐ‹…ƒ–‹‘ –Šƒ– –Š‡ ‹–‹ƒ–‹‘ –‘ –Š‡
‡’Ž‘›‡”‹Š‹•…ƒ•‡ˆ‘”•—„•‡“—‡–’”‡˜‹‘—•›‡ƒ”•—•–‘–†‡˜‹ƒ–‡ˆ”‘–Š‡‘’–‹‘—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡
…–‘…‡‡š‡”…‹•‡†‹ƒ’”‡˜‹‘—•›‡ƒ”Ǥ
BASIS OF CHARGE
The charging section, Section 15 •–ƒ–‡•–Šƒ–ǡ•ƒŽƒ”›‹•–ƒšƒ„Ž‡‘“due” or “paid” basis ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǤŠƒ–‹•ǡ
‹ˆ‹–‹•†—‡ǡ‹–‹•‹…Ž—†‡†‹–ƒšƒ„Ž‡•ƒŽƒ”›ǡ‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”‹–‹•’ƒ‹†‘”‘–ǡƒ†‹ˆ‹–‹•’ƒ‹†ǡ‹–‹•–ƒšƒ„Ž‡ǡ
‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”‹–‹•†—‡‘”‘–ǤŠ‡”‡ˆ‘”‡ǡ‹–‹•‘Ž›Ž‘‰‹…ƒŽ–‘‘–‡–Šƒ–‹ˆ‹–Šƒ•ƒŽ”‡ƒ†›„‡‡–ƒš‡†‘†—‡
„ƒ•‹•ǡ–Š‡•ƒ‡…ƒ‘–„‡–ƒš‡†ƒ‰ƒ‹™Š‡‹–‹•’ƒ‹†Ǥ‹‹Žƒ”Ž›ǡ‹ˆƒ•ƒŽƒ”›™Š‹…Š™ƒ•’ƒ‹†‹ƒ†˜ƒ…‡ǡ‹ˆ‹–Šƒ•ƒŽ”‡ƒ†›
„‡‡–ƒš‡†‹–Š‡›‡ƒ”‘ˆ’ƒ›‡–ǡ‹–…ƒ‘–•—„•‡“—‡–Ž›„‡–ƒš‡†™Š‡‹–„‡…‘‡•†—‡Ǥ

†˜ƒ…‡•ƒŽƒ”›‹•–ƒšƒ„Ž‡ǢŠ‘™‡˜‡”ǡƒ†˜ƒ…‡ƒ‰ƒ‹•–ƒŽƒ”›‹•‡••‡–‹ƒŽŽ›
ƒŽ‘ƒ™Š‹…Š™‹ŽŽ„‡”‡…‘˜‡”‡†Žƒ–‡”ˆ”‘–Š‡’Ž‘›‡‡ƒ†–Š‡”‡ˆ‘”‡–Šƒ–
 ‹•‘––ƒšƒ„Ž‡Ǥ
ƒŽƒ”›ǡ‹ˆ‡ƒ”‡†‹†‹ƒǡ‹•†‡‡‡†–‘ƒ……”—‡Ȁƒ”‹•‡‹†‹ƒǡ‡˜‡‹ˆ‹–‹•
’ƒ‹†‘—–•‹†‡†‹ƒǤ

ȏͳ͹ȋͳȌȐ
ƒŽƒ”›™‘—Ž†‹…Ž—†‡™ƒ‰‡•ǡƒŽŽ‘™ƒ…‡•ǡƒ—‹–›ǡ’‡•‹‘ǡ‰”ƒ–—‹–›ǡˆ‡‡•ǡ…‘‹••‹‘ǡƒ†˜ƒ…‡ǡŽ‡ƒ˜‡‡…ƒ•Š‡–
ƒ†ƒŽ•‘’‡”“—‹•‹–‡•ƒ†’”‘ϐ‹–•‹Ž‹‡—‘ˆ•ƒŽƒ”›‡–…Ǥ

ƒŽŽ‘™ƒ…‡‹•†‡ϐ‹‡†ƒ•ƒϐ‹š‡†ƒ‘—–‘ˆ‘‡›‰‹˜‡’‡”‹‘†‹…ƒŽŽ›‹ƒ††‹–‹‘–‘–Š‡•ƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡‘ˆ
‡‡–‹‰•‘‡•’‡…‹ϐ‹…”‡“—‹”‡‡–•…‘‡…–‡†™‹–Š–Š‡•‡”˜‹…‡”‡†‡”‡†„›–Š‡‡’Ž‘›‡‡‘”„›™ƒ›‘ˆ…‘’‡•ƒ–‹‘
ˆ‘”•‘‡——•—ƒŽ…‘†‹–‹‘•‘ˆ‡’Ž‘›‡–Ǥ–‹•–ƒšƒ„Ž‡‘†—‡Ȁƒ……”—‡†„ƒ•‹•™Š‡–Š‡”‹–‹•’ƒ‹†‹ƒ††‹–‹‘–‘–Š‡
•ƒŽƒ”›‘”‹Ž‹‡—–Š‡”‡‘ǤŠ‡•‡ƒŽŽ‘™ƒ…‡•ƒ”‡‰‡‡”ƒŽŽ›–ƒšƒ„Ž‡ƒ†ƒ”‡–‘„‡‹…Ž—†‡†‹–Š‡‰”‘•••ƒŽƒ”›—Ž‡••ƒ
 122 Lesson 4 Ȉ EP-TL

•’‡…‹ϐ‹…‡š‡’–‹‘Šƒ•„‡‡’”‘˜‹†‡†‹”‡•’‡…–‘ˆƒŽŽ‘™ƒ…‡•’”‘˜‹†‡†—†‡”–Š‡…–Ǥ

Fully Taxable
ȋ–‡”–ƒ‹‡–ǡ‡ƒ”‡••ǡ˜‡”–‹‡ǡ
‹–› ‘’‡•ƒ–‘”›ǡ‡”˜ƒ–ǡ‡ƒŽ
ŽŽ‘™ƒ…‡•Ȍ

ŽŽ‘™ƒ…‡•
Partly Taxable
ȋ—Ȁ•ͳͲȋͳ͵ȌƬ’‡…‹ƒŽŽŽ‘™ƒ…‡•
—Ȁ• ͳͲȋͳͶȌ‹…Ž—†‡†Ȍ

Fully Exempt
ȋŽŽ‘™ƒ…‡•–‘Ȁ —†‰‡•Ƭ–‘
‘˜–Ǥ
’Ž‘›‡‡•‘—–•‹†‡†‹ƒȌ

Noteǣˆ–Š‡ƒ••‡••‡‡‘’–‡†…‘…‡••‹‘ƒŽ–ƒš•Žƒ„—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǡ–Š‡ƒ••‡••‡‡

‹•‘–‡Ž‹‰‹„Ž‡–‘…Žƒ‹‡š‡’–‹‘ˆ”‘ƒ›ƒŽŽ‘™ƒ…‡•‡š…‡’–ǣ
ͳǤ ”ƒ˜‡ŽŽ‹‰ŽŽ‘™ƒ…‡•
ʹǤ ƒ‹Ž›ŽŽ‘™ƒ…‡•
͵Ǥ ‘˜‡›ƒ…‡ŽŽ‘™ƒ…‡
ͶǤ ”ƒ•’‘”–ŽŽ‘™ƒ…‡ȋ ‘”„Ž‹†ǡŠƒ†‹…ƒ’’‡†ǡ†‡ƒˆ‘”†—„‡’Ž‘›‡‡Ȍ
Fully Taxable Allowances
(1) Dearness Allowance, Additional Dearness Allowance and Dearness PayǣŠ‹•‹•ƒ˜‡”›…‘‘ƒŽŽ‘™ƒ…‡
–Š‡•‡†ƒ›•‘ƒ……‘—–‘ˆŠ‹‰Š’”‹…‡•Ǥ‘‡–‹‡•††‹–‹‘ƒŽ‡ƒ”‡••ŽŽ‘™ƒ…‡‹•ƒŽ•‘‰‹˜‡Ǥ–‹•‹…Ž—†‡†‹
–Š‡ ‹…‘‡ ˆ”‘ •ƒŽƒ”› ƒ† ‹• –ƒšƒ„Ž‡ ‹ ˆ—ŽŽǤ ‘‡–‹‡• ‹– ‹• ‰‹˜‡ —†‡” –Š‡ –‡”• ‘ˆ ‡’Ž‘›‡– ƒ†
•‘‡–‹‡•™‹–Š‘—–‹–ǤŠ‡‹–‹•‰‹˜‡—†‡”–Š‡–‡”•‘ˆ‡’Ž‘›‡–‹–‹•‹…Ž—†‡†‹•ƒŽƒ”›ˆ‘”’—”’‘•‡•‘ˆ
†‡–‡”‹‹‰–Š‡‡š‡’–‹‘Ž‹‹–•‘ˆŠ‘—•‡”‡–ƒŽŽ‘™ƒ…‡ǡ”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†ǡ‰”ƒ–—‹–›ƒ†˜ƒŽ—‡‘ˆ
”‡–ˆ”‡‡Š‘—•‡ƒ†‹•ƒŽ•‘–ƒ‡‹–‘ƒ……‘—–ˆ‘”–Š‡’—”’‘•‡•‘ˆ”‡–‹”‡‡–„‡‡ϐ‹–•Ǥ
 ‘‡–‹‡•†‡ƒ”‡••ƒŽŽ‘™ƒ…‡‹•‰‹˜‡ƒ•Ǯ‡ƒ”‡••ƒ›ǯǤ–‡ƒ•–Šƒ–‹–‹•„‡‹‰‰‹˜‡—†‡”–Š‡–‡”•‘ˆ
‡’Ž‘›‡–Ǥ
(2) Fixed Medical Allowanceǣ–‹•ˆ—ŽŽ›–ƒšƒ„Ž‡Ǥ
ȋ͵Ȍ ‹ˆϐ‹ŽŽ‘™ƒ…‡ǣ–‹•‰‹˜‡ˆ‘”Ž—…Šƒ†”‡ˆ”‡•Š‡–•–‘–Š‡‡’Ž‘›‡‡•Ǥ–‹•–ƒšƒ„Ž‡Ǥ
(4) Servant Allowanceǣ–‹•ˆ—ŽŽ›–ƒšƒ„Ž‡‡˜‡‹ˆ‹–‹•‰‹˜‡–‘ƒŽ‘™’ƒ‹†‡’Ž‘›‡‡ǡ‘–„‡‹‰ƒ‘ˆϐ‹…‡”ǡ‹Ǥ‡Ǥǡ‹–‹•
–ƒšƒ„Ž‡ˆ‘”ƒŽŽ…ƒ–‡‰‘”‹‡•‘ˆ‡’Ž‘›‡‡•Ǥ
(5) Non-practising Allowanceǣ–‹•‰‡‡”ƒŽŽ›‰‹˜‡–‘–Š‘•‡‡†‹…ƒŽ†‘…–‘”•™Š‘ƒ”‡‹‰‘˜‡”‡–•‡”˜‹…‡ƒ†
–Š‡›ƒ”‡„ƒ‡†ˆ”‘†‘‹‰’”‹˜ƒ–‡’”ƒ…–‹…‡Ǥ–‹•–‘…‘’‡•ƒ–‡–Š‡ˆ‘”–Š‹•„ƒǤ–‹•ˆ—ŽŽ›–ƒšƒ„Ž‡Ǥ
(6) Hill Allowanceǣ–‹•‰‹˜‡–‘‡’Ž‘›‡‡•™‘”‹‰‹Š‹ŽŽ›ƒ”‡ƒ•‘ƒ……‘—–‘ˆŠ‹‰Š…‘•–‘ˆŽ‹˜‹‰‹Š‹ŽŽ›ƒ”‡ƒ•
ƒ•…‘’ƒ”‡†–‘’Žƒ‹•Ǥ–‹•ˆ—ŽŽ›–ƒšƒ„Ž‡ǡ‹ˆ–Š‡’Žƒ…‡‹•Ž‘…ƒ–‡†ƒ–Ž‡••–ŠƒͳǡͲͲͲ‡–”‡•Š‡‹‰Š–ˆ”‘•‡ƒŽ‡˜‡ŽǤ
ȋ͹Ȍ ƒ”†‡ ŽŽ‘™ƒ…‡ ƒ† ”‘…–‘” ŽŽ‘™ƒ…‡ǣ Š‡•‡ ƒŽŽ‘™ƒ…‡• ƒ”‡ ‰‹˜‡ ‹ ‡†—…ƒ–‹‘ƒŽ ‹•–‹–—–‹‘• ˆ‘”
™‘”‹‰ƒ•ƒ”†‡‘ˆ–Š‡Š‘•–‡Žƒ†Ȁ‘”™‘”‹‰ƒ•”‘…–‘”‹–Š‡‹•–‹–—–‹‘ǤŠ‡•‡ƒŽŽ‘™ƒ…‡•ƒ”‡ˆ—ŽŽ›
–ƒšƒ„Ž‡Ǥ
(8) Deputation AllowanceǣŠ‡ƒ‡’Ž‘›‡‡‹••‡–ˆ”‘Š‹•’‡”ƒ‡–’Žƒ…‡‘ˆ•‡”˜‹…‡–‘•‘‡‘–Š‡”’Žƒ…‡
‘” ‹•–‹–—–‹‘ ‘” ‘”‰ƒ‹•ƒ–‹‘ ‘ †‡’—–ƒ–‹‘ ˆ‘” ƒ –‡’‘”ƒ”› ’‡”‹‘†ǡ Š‡ ‹• ‰‹˜‡ –Š‹• ƒŽŽ‘™ƒ…‡Ǥ – ‹• ˆ—ŽŽ›
–ƒšƒ„Ž‡Ǥ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 123

(9) Overtime AllowanceǣŠ‡ƒ‡’Ž‘›‡‡™‘”•ˆ‘”‡š–”ƒŠ‘—”•‘˜‡”ƒ†ƒ„‘˜‡Š‹•‘”ƒŽŠ‘—”•‘ˆ†—–›Š‡

‹•‰‹˜‡‘˜‡”–‹‡ƒŽŽ‘™ƒ…‡ƒ•‡š–”ƒ™ƒ‰‡•Ǥ–‹•ˆ—ŽŽ›–ƒšƒ„Ž‡Ǥ
(10) Other Allowances Ž‹‡ ƒ‹Ž› ƒŽŽ‘™ƒ…‡ǡ ”‘Œ‡…– ƒŽŽ‘™ƒ…‡ǡ ƒ””‹ƒ‰‡ ƒŽŽ‘™ƒ…‡ǡ ‹–› ‘’‡•ƒ–‘”›
ƒŽŽ‘™ƒ…‡ǡ‹‡”ƒŽŽ‘™ƒ…‡ǡ‡Ž‡’Š‘‡ƒŽŽ‘™ƒ…‡‡–…ǤŠ‡•‡ƒ”‡ˆ—ŽŽ›–ƒšƒ„Ž‡Ǥ
Partly Taxable Allowances
House Rent Allowance u/s 10(13A)
‘—•‡‡–ŽŽ‘™ƒ…‡ȋȌ”‡…‡‹˜‡†„›ƒ›‡’Ž‘›‡‡‹•‡š‡’––‘–Š‡‡š–‡–‘ˆŽ‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ ͷͲΨ‘ˆƒŽƒ”›ˆ‘”‡–”‘‹–‹‡•ȋ‡ŽŠ‹ǡ—„ƒ‹ǡ‘Žƒ–ƒƒ†Š‡ƒ‹Ȍǡ‡Ž•‡ͶͲΨ‘ˆƒŽƒ”›
Ȉ ƒ…–—ƒŽŽ›”‡…‡‹˜‡†
Ȉ ‡–’ƒ‹†‹—•ͳͲΨ‘ˆƒŽƒ”›
‘–‡ǣƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡•‘ˆαƒ•‹…Ϊȋ‹ˆˆ‘”‹‰’ƒ”–‘ˆ•ƒŽƒ”›Ȁ”‡–‹”‡‡–„‡‡ϐ‹–ȌΪ‘‹••‹‘ƒ•ƒ
ϐ‹š‡†Ψ‘ˆ—”‘˜‡”Ǥ

Illustration 1:

‹”‹•‡’Ž‘›‡†™‹–Šƒ’’‹‡••‘Ž—–‹‘•–†Ǥƒ††—”‹‰–Š‡ ʹͲʹͳǦʹʹǤ‡Šƒ†ƒƒ•‹…ƒ›‘ˆ͹ͷͲͲͲ’‡”

‘–ŠǤ™‹‰–‘Š‹•‰‘‘†’‡”ˆ‘”ƒ…‡ƒ–™‘”’Žƒ…‡ǡŠ‡™ƒ•‰‹˜‡ƒƒ—ƒŽ‹…”‡‡–‹Š‹•ƒŽƒ”›‘ˆʹͲΨ
‡ˆˆ‡…–‹˜‡ ‡„ʹͲʹʹǤ‡ƒŽ•‘”‡…‡‹˜‡††—”‹‰–Š‡›‡ƒ”ǡƒ‡ƒ”‡••ŽŽ‘™ƒ…‡‘ˆͳͲͲΨ‘ˆƒ•‹…ȋŠ‘™‡˜‡”‘Ž›ͷͲΨ
‘ˆ™Š‹…Š™ƒ•‹…Ž—†‡†’‡”Š‹•–‡”•‘ˆ‡’Ž‘›‡–ȌǤŠ‡‘’ƒ›ƒŽ•‘‰ƒ˜‡Š‹‘ˆ͵ͲͲͲͲ’‡”‘–Šǡ
™Š‹…Š™ƒ•‹…”‡ƒ•‡†–‘͵ͷͲͲͲ’‡”‘–Š‡ˆˆ‡…–‹˜‡ ƒʹͲʹʹǤ‡•–ƒ›‡†ƒ–Š‹•’ƒ”‡–ƒŽŠ‘‡‹Š‡†ƒ„ƒ†
ˆ‘” ’” ƒ† ƒ› ʹͲʹͳǡ ’‘•– ™Š‹…Š Š‡ –‘‘ —’ ƒ ‡–‡† ……‘‘†ƒ–‹‘ ƒ– —”ƒ– ƒ– ƒ ‘–ŠŽ› ”‡–ƒŽ ‘ˆ 
ʹ͸ͲͲͲǤˆˆ‡…–‹˜‡‘˜ʹͲʹͳǡŠ‡™ƒ•‘˜‡†–‘—„ƒ‹–‘–Š‡‘”’‘”ƒ–‡ˆϐ‹…‡ǡƒ†Š‡–‘‘—’ƒƒ……‘‘†ƒ–‹‘
ƒ–—„ƒ‹ƒ–ƒ‘–ŠŽ›”‡–ƒŽ‘ˆ͵͸ͲͲͲǤ‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡‡š‡’–ˆ”‘ƒšƒ†–Š‡

”‘••ƒŽƒ”›Ǥ
Solution:

Š‡…‘’—–ƒ–‹‘‘ˆ‡š‡’–ˆ”‘–ƒš™‘—Ž†Šƒ˜‡–‘„‡†‘‡‘ƒ‘–ŠŽ›„ƒ•‹•ƒ•–Š‡•ƒŽƒ”›ƒ†”‡–ƒŽϔ‹‰—”‡•
…Šƒ‰‡††—”‹‰–Š‡›‡ƒ”ǡ‹–Š‡ƒ‡”’”‘˜‹†‡†„‡Ž‘™Ǥ

Item Apr May Jun Jul —‰ Sep Oct Nov Dec Jan Feb Mar Total
ƒ•‹… ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͹ͷǡͲͲͲ ͻͲǡͲͲͲ ͻͲǡͲͲͲ ͻǡ͵ͲǡͲͲͲ
ǤǤ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͵͹ǡͷͲͲ ͶͷǡͲͲͲ ͶͷǡͲͲͲ Ǧ
ƒŽƒ”›ˆ‘” ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡͳʹǡͷͲͲ ͳǡ͵ͷǡͲͲͲ ͳǡ͵ͷǡͲͲͲ Ǧ

……‘‘Ǧ ™ ™ —”ƒ– —”ƒ– —”ƒ– —”ƒ– —”ƒ– —„ƒ‹ —„ƒ‹ —„ƒ‹ —„ƒ‹ —„ƒ‹ Ǧ
dation
ͶͲΨ‘” Ȃ Ȃ ͶͷǡͲͲͲ ͶͷǡͲͲͲ ͶͷǡͲͲͲ ͶͷǡͲͲͲ ͶͷǡͲͲͲ ͷ͸ǡʹͷͲ ͷ͸ǡʹͷͲ ͷ͸ǡʹͷͲ ͸͹ǡͷͲͲ ͸͹ǡͷͲͲ Ǧ
ͷͲΨ
‘ˆƒŽƒ”›
…–—Ǧ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͷǡͲͲͲ ͵ͷǡͲͲͲ ͵ͷǡͲͲͲ ͵ǡ͹ͷǡͲͲͲ
ƒŽŽ›‡…†
‡–ǦͳͲΨ Ȃ Ȃ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ʹͶǡ͹ͷͲ ʹͶǡ͹ͷͲ ʹͶǡ͹ͷͲ ʹʹǡͷͲͲ ʹʹǡͷͲͲ Ǧ
ƒŽƒ”›
‹ Ȃ Ȃ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ͳͶǡ͹ͷͲ ʹͶǡ͹ͷͲ ʹͶǡ͹ͷͲ ʹͶǡ͹ͷͲ ʹʹǡͷͲͲ ʹʹǡͷͲͲ ͳǡͻ͵ǡͲͲͲ

Note:
ȋͳȌ ‘”–Š‡•–ƒ›ƒ–—”ƒ–ǡͶͲΨ‘ˆƒŽƒ”›ƒ†ˆ‘”•–ƒ›ƒ–—„ƒ‹ǡͷͲΨ‘ˆƒŽƒ”›‹•…‘•‹†‡”‡†ˆ‘”‘‡‘ˆ–Š‡
’ƒ”ƒ‡–‡”•ˆ‘”‡š‡’–‹‘Ǥ
ȋʹȌ ǡ‘Ž›–‘–Š‡‡š–‡–‘ˆ‹–„‡‹‰‹…Ž—†‡†’‡”–‡”•‘ˆ‡’Ž‘›‡–ǡ‹•‹…Ž—†‡†‹ƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡•
‘ˆǤ
 124 Lesson 4 Ȉ EP-TL

Ž‡ƒ•‡‘–‡–Š‡
”‘••ƒŽƒ”›‘’—–ƒ–‹‘„‡Ž‘™ǣ

Particulars (Rs.) (Rs.)

ƒ•‹…ƒŽƒ”›ȋ͹ͷͲͲͲšͳͲΪͻͲͲͲͲšʹȌ ͻǡ͵ͲǡͲͲͲ
‡ƒ”‡••ŽŽ‘™ƒ…‡ȋͳͲͲΨ‘ˆƒ•‹…Ȍ ͻǡ͵ͲǡͲͲͲ
 ͵ǡ͹ͷǡͲͲͲ
Less ǣš‡’– ͳǡͻ͵ǡͲͲͲ ͳǡͺʹǡͲͲͲ
Gross Salary 20,42,000
Noteǣ–‹•ƒ••—‡†–Šƒ–ƒ••‡••‡‡Šƒ•‘–‘’–‡†—Ȁ•ͳͳͷǡ‘–Š‡”™‹•‡‡š‡’–‹‘—Ȁ•ͳͲȋͳ͵Ȍ‘ˆ•Ǥͳǡͻ͵ǡͲͲͲ
™‹ŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡Ǥ–Šƒ–…ƒ•‡ǡ
”‘••ƒŽƒ”›™‘—Ž†„‡•Ǥʹʹǡ͵ͷǡͲͲͲǤ

Special Allowances [Section 10(14)]

iȌ ŽŽ•’‡…‹ƒŽƒŽŽ‘™ƒ…‡••’‡…‹ϐ‹…ƒŽŽ›‰”ƒ–‡†–‘‡‡–‡š’‡•‡•ǡ‹…—””‡†ǡˆ‘”–Š‡’—”’‘•‡•‘ˆ’‡”ˆ‘”ƒ…‡‘ˆ†—–‹‡•Ǥ
ƒȌ Š‘ŽŽ›
„Ȍ š…Ž—•‹˜‡Ž›Ƭ
…Ȍ ‡…‡••ƒ”‹Ž›
 Š‡•‡ƒ”‡‡š‡’––‘–Š‡‡š–‡–•—…Š‡š’‡•‡•ƒ”‡ƒ…–—ƒŽŽ›‹…—””‡†‘”–Š‡ƒ‘—–”‡…‡‹˜‡†™Š‹…Š‡˜‡”‹•Ž‡••Ǥ
šƒ’Ž‡•‹…Ž—†‡ǡ”ƒ˜‡ŽŽ‹‰Ƭ‘˜‡›ƒ…‡ǡ‡Ž‘…ƒ–‹‘ǡ‡Ž’‡”Ƭ‹ˆ‘”ŽŽ‘™ƒ…‡•Ǥȋ‘…ƒ’‘”—’’‡”Ž‹‹–Ȍ
‹‹Ȍ ’‡…‹ƒŽƒŽŽ‘™ƒ…‡•‰”ƒ–‡†–‘ƒƒ••‡••‡‡‡‹–Š‡”–‘‡‡–Š‹•’‡”•‘ƒŽ‡š’‡•‡•ƒ––Š‡’Žƒ…‡‘ˆ†—–›–‘
…‘’‡•ƒ–‡ˆ‘”‹…”‡ƒ•‡†…‘•–‘ˆŽ‹˜‹‰ǤŽŽ‘™ƒ…‡•™Š‹…Šƒ”‡‰”ƒ–‡†–‘‡‡–’‡”•‘ƒŽ‡š’‡•‡•ƒ”‡‡š‡’–
–‘–Š‡‡š–‡–‘ˆƒ‘—–”‡…‡‹˜‡†‘”–Š‡Ž‹‹–••’‡…‹ϐ‹‡†™Š‹…Š‡˜‡”‹•Ž‡••Ǥ
šƒ’Ž‡•‹…Ž—†‡ǡ
ƒȌ ”‹„ƒŽ”‡ƒŽŽ‘™ƒ…‡…ƒ’’‡†–‘ʹͲͲ’‡”‘–Š‹•‡š‡’–Ǥ
„Ȍ Š‹Ž†”‡†—…ƒ–‹‘ŽŽ‘™ƒ…‡…ƒ’’‡†–‘ͳͲͲ’‡”‘–Šȋ’‡”…Š‹Ž†ǡƒšʹ…Š‹Ž†”‡Ȍ‹•‡š‡’–Ǥ
…Ȍ ‘•–‡Žš’‡†‹–—”‡ŽŽ‘™ƒ…‡…ƒ’’‡†–‘͵ͲͲ’‡”‘–Šȋ’‡”…Š‹Ž†ǡƒšʹ…Š‹Ž†”‡Ȍ‹•‡š‡’–Ǥ
†Ȍ ”ƒ•’‘”–ŽŽ‘™ƒ…‡ˆ‘”Šƒ†‹…ƒ’’‡†…ƒ’’‡†ƒ–͵ʹͲͲ’‡”‘–Š‹•‡š‡’–Ǥ
‡•‹†‡•–Š‡ƒ„‘˜‡–Š‡”‡ƒ”‡…‘’‡•ƒ–‘”›ƒŽŽ‘™ƒ…‡•ˆ‘”Š‹ŽŽ›ƒ”‡ƒ•ǡƒ†ˆ‘”™‘”‹†‹ˆϐ‹…—Ž–…‘†‹–‹‘•–‘‘Ǥ
•’‡”•‡…–‹‘ͳͲȋͳͶȌǡ”‡ƒ†™‹–Š”—Ž‡ʹˆ‘ŽŽ‘™‹‰ƒŽŽ‘™ƒ…‡•‰”ƒ–‡†–‘ƒ‡’Ž‘›‡‡ƒ”‡‡š‡’–ˆ”‘–ƒš •—„Œ‡…–
–‘…‡”–ƒ‹Ž‹‹–ǣ

Allowances š‡’–‹‘‹‹–

Š‹Ž†”‡†—…ƒ–‹‘ŽŽ‘™ƒ…‡ ’–‘•ǤͳͲͲ’‡”‘–Š’‡”…Š‹Ž†—’–‘ƒƒš‹—‘ˆ
ʹ…Š‹Ž†”‡‹•‡š‡’–

‘•–‡Žš’‡†‹–—”‡ŽŽ‘™ƒ…‡ ’–‘•Ǥ͵ͲͲ’‡”‘–Š’‡”…Š‹Ž†—’–‘ƒƒš‹—‘ˆ
ʹ…Š‹Ž†”‡‹•‡š‡’–

”ƒ•’‘”– ŽŽ‘™ƒ…‡ ‰”ƒ–‡† –‘ ƒ ‡’Ž‘›‡‡ –‘ Ž›•Ǥ͵ǡʹͲͲ’‡”‘–Šˆ‘”„Ž‹†ǡŠƒ†‹…ƒ’’‡†ǡ†‡ƒˆ

‡‡– ‡š’‡†‹–—”‡ ‘  …‘—–‹‰  „‡–™‡‡  ’Žƒ…‡ ‘ˆ ƒ††—„‡’Ž‘›‡‡•‹•‡š‡’–
”‡•‹†‡…‡ƒ†’Žƒ…‡‘ˆ†—–›Ǥ‘•‡“—‡––‘‹–”‘†—…–‹‘
‘ˆ–ƒ†ƒ”†‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ǡ‡š‡’–‹‘‘ˆ
–”ƒ•’‘”–ƒŽŽ‘™ƒ…‡‘ˆ•Ǥͳ͸ͲͲǤǤ‹•™‹–Š†”ƒ™
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 125

Allowances š‡’–‹‘‹‹–

ŽŽ‘™ƒ…‡ ‰”ƒ–‡† –‘ ƒ ‡’Ž‘›‡‡ ™‘”‹‰ ‹ ƒ› ‘—–‘ˆ‡š‡’–‹‘•ŠƒŽŽ„‡Ž‘™‡”‘ˆˆ‘ŽŽ‘™‹‰ǣ

–”ƒ•’‘”– „—•‹‡•• –‘ ‡‡– Š‹• ’‡”•‘ƒŽ ‡š’‡†‹–—”‡ ƒȌ ͹ͲΨ‘ˆ•—…ŠƒŽŽ‘™ƒ…‡Ǣ‘”
†—”‹‰ Š‹• †—–› ’‡”ˆ‘”‡† ‹ –Š‡ …‘—”•‡ ‘ˆ ”—‹‰ „Ȍ •ǤͳͲǡͲͲͲ’‡”‘–Š
‘ˆ •—…Š –”ƒ•’‘”– ˆ”‘ ‘‡ ’Žƒ…‡ –‘ ƒ‘–Š‡” ’Žƒ…‡
’”‘˜‹†‡†‡’Ž‘›‡‡‹•‘–‹”‡…‡‹’–‘ˆ†ƒ‹Ž›ƒŽŽ‘™ƒ…‡

‘˜‡›ƒ…‡ŽŽ‘™ƒ…‡‰”ƒ–‡†–‘‡‡––Š‡‡š’‡†‹–—”‡ š‡’––‘–Š‡‡š–‡–‘ˆ‡š’‡†‹–—”‡‹…—””‡†ˆ‘”
‘…‘˜‡›ƒ…‡‹’‡”ˆ‘”ƒ…‡‘ˆ†—–‹‡•‘ˆƒ‘ˆϐ‹…‡ ‘ˆϐ‹…‹ƒŽ’—”’‘•‡•

”ƒ˜‡ŽŽ‹‰ŽŽ‘™ƒ…‡–‘‡‡––Š‡…‘•–‘ˆ–”ƒ˜‡Ž‘–‘—” š‡’––‘–Š‡‡š–‡–‘ˆ‡š’‡†‹–—”‡‹…—””‡†ˆ‘”
‘”‘–”ƒ•ˆ‡” ‘ˆϐ‹…‹ƒŽ’—”’‘•‡•

ƒ‹Ž› ŽŽ‘™ƒ…‡ –‘ ‡‡– –Š‡ ‘”†‹ƒ”› †ƒ‹Ž› …Šƒ”‰‡• š‡’––‘–Š‡‡š–‡–‘ˆ‡š’‡†‹–—”‡‹…—””‡†ˆ‘”

‹…—””‡†„›ƒ‡’Ž‘›‡‡‘ƒ……‘—–‘ˆƒ„•‡…‡ˆ”‘ ‘ˆϐ‹…‹ƒŽ’—”’‘•‡•
Š‹•‘”ƒŽ’Žƒ…‡‘ˆ†—–›

‡Ž’‡”Ȁ••‹•–ƒ–ŽŽ‘™ƒ…‡ š‡’––‘–Š‡‡š–‡–‘ˆ‡š’‡†‹–—”‡‹…—””‡†ˆ‘”
‘ˆϐ‹…‹ƒŽ’—”’‘•‡•

‡•‡ƒ”…Š ŽŽ‘™ƒ…‡  ‰”ƒ–‡†  ˆ‘”  ‡…‘—”ƒ‰‹‰  –Š‡ š‡’––‘–Š‡‡š–‡–‘ˆ‡š’‡†‹–—”‡‹…—””‡†ˆ‘”

ƒ…ƒ†‡‹…”‡•‡ƒ”…Šƒ†‘–Š‡”’”‘ˆ‡••‹‘ƒŽ’—”•—‹–• ‘ˆϐ‹…‹ƒŽ’—”’‘•‡•

‹ˆ‘”ŽŽ‘™ƒ…‡ š‡’––‘–Š‡‡š–‡–‘ˆ‡š’‡†‹–—”‡‹…—””‡†ˆ‘”
‘ˆϐ‹…‹ƒŽ’—”’‘•‡•

’‡…‹ƒŽ…‘’‡•ƒ–‘”›ŽŽ‘™ƒ…‡ȋ‹ŽŽ›”‡ƒ•Ȍȋ—„Œ‡…– ‘—– ‡š‡’– ˆ”‘ –ƒš ˜ƒ”‹‡• ˆ”‘ •Ǥ ͵ͲͲ –‘ •Ǥ
–‘…‡”–ƒ‹…‘†‹–‹‘•ƒ†Ž‘…ƒ–‹‘•Ȍ ͹ǡͲͲͲ’‡”‘–Š

‘”†‡” ƒ”‡ƒǡ ‡‘–‡ ‘…ƒŽ‹–› ‘” ‹•–—”„‡† ”‡ƒ ‘” ‘—– ‡š‡’– ˆ”‘ –ƒš ˜ƒ”‹‡• ˆ”‘ •Ǥ ʹͲͲ –‘ •Ǥ
‹ˆϐ‹…—Ž–”‡ƒŽŽ‘™ƒ…‡ȋ—„Œ‡…––‘…‡”–ƒ‹…‘†‹–‹‘• ͳǡ͵ͲͲ’‡”‘–Š
ƒ†Ž‘…ƒ–‹‘•Ȍ

”‹„ƒŽƒ”‡ƒƒŽŽ‘™ƒ…‡‹ȋƒȌƒ†Š›ƒ”ƒ†‡•Šȋ„Ȍƒ‹Ž ’–‘•ǤʹͲͲ’‡”‘–Š
ƒ†— ȋ…Ȍ ––ƒ” ”ƒ†‡•Š ȋ†Ȍ ƒ”ƒ–ƒƒ ȋ‡Ȍ ”‹’—”ƒ ȋˆȌ
••ƒȋ‰Ȍ‡•–‡‰ƒŽȋŠȌ‹Šƒ”ȋ‹Ȍ”‹••ƒ

‘’‡•ƒ–‘”› ‹‡Ž†”‡ƒŽŽ‘™ƒ…‡Ǥˆ–Š‹•‡š‡’–‹‘ ’–‘•Ǥʹǡ͸ͲͲ’‡”‘–Š

‹• –ƒ‡ǡ ‡’Ž‘›‡‡ …ƒ‘– …Žƒ‹ ƒ› ‡š‡’–‹‘ ‹
”‡•’‡…– ‘ˆ „‘”†‡” ƒ”‡ƒ ƒŽŽ‘™ƒ…‡ȋ—„Œ‡…– –‘ …‡”–ƒ‹
…‘†‹–‹‘•ƒ†Ž‘…ƒ–‹‘•Ȍ

‘’‡•ƒ–‘”› ‘†‹ϐ‹‡† ”‡ƒ ŽŽ‘™ƒ…‡Ǥ ˆ –Š‹• ’–‘•ǤͳǡͲͲͲ’‡”‘–Š

‡š‡’–‹‘ ‹• –ƒ‡ǡ ‡’Ž‘›‡‡ …ƒ‘– …Žƒ‹ ƒ›
‡š‡’–‹‘‹”‡•’‡…–‘ˆ„‘”†‡”ƒ”‡ƒƒŽŽ‘™ƒ…‡ȋ—„Œ‡…–
–‘…‡”–ƒ‹…‘†‹–‹‘•ƒ†Ž‘…ƒ–‹‘•Ȍ

‘—–‡” •—”‰‡…› ŽŽ‘™ƒ…‡ ‰”ƒ–‡† –‘ ‡„‡”• ’–‘•Ǥ͵ǡͻͲͲ’‡”‘–Š

‘ˆ ”‡† ‘”…‡• ‘’‡”ƒ–‹‰ ‹ ƒ”‡ƒ• ƒ™ƒ› ˆ”‘ –Š‡‹”
’‡”ƒ‡–Ž‘…ƒ–‹‘•Ǥˆ–Š‹•‡š‡’–‹‘‹•–ƒ‡ǡ‡’Ž‘›‡‡
…ƒ‘– …Žƒ‹ ƒ› ‡š‡’–‹‘ ‹ ”‡•’‡…– ‘ˆ „‘”†‡” ƒ”‡ƒ
ƒŽŽ‘™ƒ…‡ȋ—„Œ‡…––‘…‡”–ƒ‹…‘†‹–‹‘•ƒ†Ž‘…ƒ–‹‘•Ȍ

†‡”‰”‘—†ŽŽ‘™ƒ…‡–‘‡’Ž‘›‡‡•™‘”‹‰‹ ’–‘•ǤͺͲͲ’‡”‘–Š
—…‘‰‡‹ƒŽǡ—ƒ–—”ƒŽ…Ž‹ƒ–‡‹—†‡”‰”‘—†‹‡•
 126 Lesson 4 Ȉ EP-TL

Allowances š‡’–‹‘‹‹–

‹‰Š Ž–‹–—†‡ ŽŽ‘™ƒ…‡ ‰”ƒ–‡† –‘ ƒ”‡† ˆ‘”…‡• ƒȌ ’–‘•ǤͳǡͲ͸Ͳ’‡”‘–Šȋˆ‘”ƒŽ–‹–—†‡‘ˆͻǡͲͲͲ–‘

‘’‡”ƒ–‹‰ ‹ Š‹‰Š ƒŽ–‹–—†‡ ƒ”‡ƒ• ȋ—„Œ‡…– –‘ …‡”–ƒ‹ ͳͷǡͲͲͲˆ‡‡–Ȍ
…‘†‹–‹‘•ƒ†Ž‘…ƒ–‹‘•Ȍ „Ȍ ’ –‘ •Ǥ ͳǡ͸ͲͲ ’‡” ‘–Š ȋˆ‘” ƒŽ–‹–—†‡ ƒ„‘˜‡
ͳͷǡͲͲͲˆ‡‡–Ȍ

RETIREMENT BENEFITS
Annuity / Pension
—‹–›‹•ƒ›‡ƒ”Ž›’ƒ›‡––‘ƒ‡’Ž‘›‡‡’‘•–Š‹•”‡–‹”‡‡–‘ƒ……‘—–‘ˆ–Š‡ˆ—†•–Šƒ–™‡”‡•ƒ˜‡†„›Š‹„›
™ƒ›‘ˆ•—„•…”‹’–‹‘–‘–Š‡ƒ—‹–›ˆ—†˜‹†‡Š‹••ƒŽƒ”›™Š‡Š‡™ƒ•‹‡’Ž‘›‡–Ǥ
—‹–›”‡…‡‹˜‡†ˆ”‘–Š‡’”‡•‡–‡’Ž‘›‡”‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•ƒŽƒ”›ƒ†ƒ›ƒ‘—–”‡…‡‹˜‡†ˆ”‘–Š‡’ƒ•–
‡’Ž‘›‡”‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•”‘ϔ‹–•Ž‹‡—‘ˆƒŽƒ”›Ǥ
‡•‹‘Š‘™‡˜‡”‹•‰‡‡”ƒŽŽ›’ƒ‹†„›–Š‡
‘˜‡”‡–‘”ƒ‘’ƒ›–‘–Š‡‡’Ž‘›‡‡ˆ‘”Š‹•’ƒ•–•‡”˜‹…‡ƒ†–Š‹•
–‘‘‹•’ƒ›ƒ„Ž‡ƒˆ–‡”–Š‡”‡–‹”‡‡–Ǥ
Š‹•’‡•‹‘•‘”‡…‡‹˜‡†…‘—Ž†„‡…‘—–‡†Ȁ—…‘—–‡†ǡ‡š’Žƒ‹‡†ƒ•—†‡”ǣ

…‘—–‡† ‘—–‡†
‡•‹‘ ‡…‡‹˜‡†’‡”‹‘†‹…ƒŽŽ› ‡•‹‘ ‡…‡‹˜‡†‹—’•—ȋ™Š‘Ž‡Ȁ’ƒ”–Ȍ
—–—”‡”‹‰Š––‘”‡…‡‹˜‡’ƒ›‡–•‰‹˜‡—’
—ŽŽ›–ƒšƒ„Ž‡ˆ‘”ƒŽŽ‡’Ž‘›‡‡• –‘”‡…‡‹˜‡‹‡†‹ƒ–‡Ž—’•—(refer
below on the treatment)

Treatment of Commuted Pension u/s 10(10A)

 Lesson 4 Ȉ Part I - Income under the Head “Salaries” ͳʹ͹

Illustration 2:
”Œ—”‡–‹”‡†‘ͳͷǦͶǦʹͲʹͳˆ”‘‘’ƒ›–†Ǥ‡™ƒ•‡–‹–Ž‡†–‘ƒ’‡•‹‘‘ˆ•ǤʹͲǡͲͲͲ’ǤǤ––Š‡–‹‡‘ˆ
”‡–‹”‡‡–ǡŠ‡‰‘–͹ͷΨ‘ˆ–Š‡’‡•‹‘…‘—–‡†ƒ†”‡…‡‹˜‡†•ǤͶǡͷͲǡͲͲͲƒ•…‘—–‡†’‡•‹‘Ǥ‘’—–‡–Š‡
–ƒšƒ„Ž‡’‘”–‹‘‘ˆ–Š‡…‘—–‡†’‡•‹‘‹ˆǤ
‡‹•ƒŽ•‘‡–‹–Ž‡†–‘‰”ƒ–—‹–›Ǥ
‡‹•‘–‡–‹–Ž‡†–‘‰”ƒ–—‹–›Ǥ
Solution :

͹ͷΨ‘ˆ…‘—–‡†’‡•‹‘‹•‡“—ƒŽ–‘•ǤͶǡͷͲǡͲͲͲǤ‡…‡…‘—–‡†˜ƒŽ—‡‘ˆͳȀ͵‘ˆ–Š‡’‡•‹‘™‘—Ž†ƒ‘—–
–‘•ǤͶǡͷͲǡͲͲͲšͳͲͲȀ͹ͷšͳȀ͵α•ǤʹǡͲͲǡͲͲͲǢ•ǤʹǡͲͲǡͲͲͲ™‘—Ž†ǡ–Š‡”‡ˆ‘”‡„‡‡š‡’–ƒ†„ƒŽƒ…‡•ǤʹǡͷͲǡͲͲͲ
™‘—Ž†„‡–ƒšƒ„Ž‡Ǥ
͹ͷΨ‘ˆ…‘—–‡†’‡•‹‘‹•‡“—ƒŽ–‘•ǤͶǡͷͲǡͲͲͲ‡…‡…‘—–‡†˜ƒŽ—‡‘ˆͷͲΨ‘ˆ’‡•‹‘ƒ‘—––‘ͶǡͷͲǡͲͲͲ
šͳͲͲȀ͹ͷšΦα•Ǥ͵ǡͲͲǡͲͲͲǤŠ‡”‡ˆ‘”‡ǡ•Ǥ͵ǡͲͲǡͲͲͲ™‘—Ž†„‡‡š‡’–ƒ†•ǤͳǡͷͲǡͲͲͲ™‘—Ž†„‡–ƒšƒ„Ž‡Ǥ

Gratuity [Section 10(10)]

”ƒ–—‹–› ‹• ‘”ƒŽŽ› ’ƒ‹† ‹ Ž‹‡— ‘ˆ –Š‡ Ž‘‰Ǧ–‡” •‡”˜‹…‡ ‘ˆ ƒ ‡’Ž‘›‡‡ ȋ—•—ƒŽŽ› ε ͷ ›‡ƒ”•Ȍǡ „—– ‹• ƒ ˜‘Ž—–ƒ”›
’ƒ›‡–„›–Š‡‡’Ž‘›‡”ǡƒ•ƒƒ’’”‡…‹ƒ–‹‘‘ˆ–Š‡Ž‘‰Ǧ•–ƒ†‹‰•‡”˜‹…‡•Ǥ
Š‡
”ƒ–—‹–›•‘”‡…‡‹˜‡†ƒ––Š‡–‹‡‘ˆ”‡–‹”‡‡–‘”–‡”‹ƒ–‹‘‘ˆ‡’Ž‘›‡–‘”†‡ƒ–Š‘ˆ‡’Ž‘›‡‡ǡ‹•‡š‡’–ƒ•
—†‡”ǣ
ƒȌ ‘”–Š‡‡–”ƒŽȀ–ƒ–‡
‘˜‡”‡–‡’Ž‘›‡‡•ƒ†ˆ‘”–Š‡‡„‡”•‘ˆ–Š‡‡ˆ‡…‡‡”˜‹…‡•ǡƒ›ƒ‘—–
”‡…‡‹˜‡†ƒ•
”ƒ–—‹–›ƒ––Š‡–‹‡‘ˆ”‡–‹”‡‡–Ȁ†‡ƒ–Š‹•ˆ—ŽŽ›‡š‡’–Ǥ
„Ȍ ‘”ƒŽŽ‘–Š‡”‡’Ž‘›‡‡•‹–Š‡’”‹˜ƒ–‡•‡…–‘”ǣ
Ȉ …ƒ•‡–Š‡‡’Ž‘›‡‡‹•…‘˜‡”‡†—†‡”–Š‡ƒ›‡–‘ˆ
”ƒ–—‹–›…–ǡͳͻ͹ʹǡƒ›†‡ƒ–ŠǦ…—Ǧ”‡–‹”‡‡–

”ƒ–—‹–›‹•‡š‡’––‘–Š‡‡š–‡–‘ˆŽ‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
‹Ǥ ʹͲǡͲͲǡͲͲͲ
‹‹Ǥ
”ƒ–—‹–›ƒ…–—ƒŽŽ›”‡…‡‹˜‡†
‹‹‹Ǥ ͳͷ†ƒ›•ǯ•ƒŽƒ”›„ƒ•‡†‘•ƒŽƒ”›Žƒ•–†”ƒ™ˆ‘”‡ƒ…Š›‡ƒ”‘ˆ•‡”˜‹…‡‘”’ƒ”––Š‡”‡‘ˆ‹‡š…‡••‘ˆ͸
‘–Š•Ǥ
For exampleȂˆ›‘—Šƒ˜‡’—–‹ͳͳ›‡ƒ”•ƒ†•‡˜‡‘–Š•‹ƒ‘”‰ƒ‹œƒ–‹‘ǡ›‘—”•‡”˜‹…‡’‡”‹‘†™‹ŽŽ„‡
–ƒ‡ –‘ „‡ ͳʹ ›‡ƒ”•Ǥ —– ‹ˆ ›‘—” •‡”˜‹…‡ –‡—”‡ ‹• ͳͳ ›‡ƒ”• ƒ† ϐ‹˜‡ ‘–Š•ǡ –Š‡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ –Š‹•
…ƒŽ…—Žƒ–‹‘›‘—”–‡—”‡™‹ŽŽ„‡–ƒ‡–‘„‡ͳͳ›‡ƒ”•‘Ž›Ǥ
‘–‡ǣ‡”‡ƒŽƒ”›™‘—Ž†‡ƒȋƒ•‹…ήȌƒ†—„‡”‘ˆ†ƒ›•‹–Š‡‘–Š–‘„‡ƒ••—‡†–‘„‡͸ͼǤ
Ȉ  …ƒ•‡ –Š‡ ‡’Ž‘›‡‡ ‹•  …‘˜‡”‡† —†‡” –Š‡ ƒ›‡– ‘ˆ
”ƒ–—‹–› …–ǡ ͳͻ͹ʹǡ ƒ› †‡ƒ–ŠǦ…—Ǧ
”‡–‹”‡‡–
”ƒ–—‹–›‹•‡š‡’––‘–Š‡‡š–‡–‘ˆŽ‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
‹Ǥ ʹͲǡͲͲǡͲͲͲ
‹‹Ǥ
”ƒ–—‹–›ƒ…–—ƒŽŽ›”‡…‡‹˜‡†
‹‹‹Ǥ ƒŽˆ‘–Š•ǯƒŽƒ”›„ƒ•‡†‘Žƒ•–ͳͲ‘–Š•ǯƒ˜‡”ƒ‰‡•ƒŽƒ”›†”ƒ™‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡
‘–Š‘ˆ”‡–‹”‡‡–Ȁ†‡ƒ–Šǡˆ‘”‡ƒ…Š…‘’Ž‡–‡†›‡ƒ”‘ˆ•‡”˜‹…‡ȋˆ”ƒ…–‹‘‘ˆ›‡ƒ”–‘„‡‹‰‘”‡†ȌǤ
Note ǣ‡”‡ƒŽƒ”›™‘—Ž†‡ƒƒ•‹…ήȋ‘Ž›–‘–Š‡‡š–‡–‘ˆˆ‘”‹‰’ƒ”–‘ˆ–Š‡”‡–‹”‡‡–„‡‡ϔ‹–•Ȍή‘‹••‹‘
ƒ•ƒά‘ˆ—”‘˜‡”ƒ†—„‡”‘ˆ†ƒ›•‹–Š‡‘–Š–‘„‡–ƒ‡ƒ–͹ͶǤ
‹Ǥ ˆ‡’Ž‘›‡‡Šƒ•”‡…‡‹˜‡†‰”ƒ–—‹–›ˆ”‘ƒ›‘ˆŠ‹•’ƒ•–‡’Ž‘›‡”ǡ–Š‡–Š‡ƒ‘—–‘ˆ‰”ƒ–—‹–›‡š‡’–‡†‡ƒ”Ž‹‡”
•ŠƒŽŽ„‡”‡†—…‡†ˆ”‘•ǤʹͲǡͲͲǡͲͲͲǤ
 128 Lesson 4 Ȉ EP-TL

‹‹Ǥ ˆ ‡’Ž‘›‡‡ Šƒ• ‘– ”‡…‡‹˜‡† ‰”ƒ–—‹–› ˆ”‘ ƒ› ‘ˆ Š‹• ’ƒ•– ‡’Ž‘›‡”ǡ –Š‡ –Š‡ ’‡”‹‘† ‘ˆ ’ƒ•–
‡’Ž‘›‡–•ŠƒŽŽƒŽ•‘„‡…‘•‹†‡”‡†ˆ‘”…ƒŽ…—Žƒ–‹‰›‡ƒ”•‘ˆ•‡”˜‹…‡Ǥ

Illustration 3:
 ’‡•‹‘‡” ˆ”‘ ƒŠƒ”ƒ•Š–”ƒ –ƒ–‡
‘˜‡”‡– ”‡–‹”‡† ‹ ‡…‡„‡”  ʹͲͳͷ ”‡…‡‹˜‹‰ ƒ ƒ‘—– ‘ˆ •Ǥ
ͳͲǡͲͲǡͲͲͲƒ•‰”ƒ–—‹–›Ǥ—––Š‡”‡ƒˆ–‡”ǡŠ‡”‡…‡‹˜‡†ƒˆ—”–Š‡”ƒ‘—–‘ˆ•ǤͳǤʹͲŽƒŠ•‹’”‹ŽʹͲͳͺ…‘•‡“—‡–‘
”‡˜‹•‹‘‘ˆ’ƒ›Ǥ––Š‡–‹‡‘ˆŠ‹•”‡–‹”‡‡––Š‡‡š‡’–‹‘Ž‹‹–™ƒ••ǤͳͲŽƒŠǤ•Š‡‡Ž‹‰‹„Ž‡ˆ‘”–Š‡Š‹‰Š‡”
‡š‡’–‹‘Ž‹‹–—†‡”‡…–‹‘ͳͲȋͳͲȌƒ˜ƒ‹Žƒ„Ž‡ƒ––Š‡–‹‡‘ˆ”‡…‡‹’–ǤŠ‡Š‹‰Š‡”Ž‹‹–‘ˆ•ǤʹͲŽƒŠ•‹•”ƒ‹•‡†
„›†ƒ–‡†ʹͻǤͲ͵ǤʹͲͳͺԘǤǤͳͶʹͲȋȌԘ‘–‹ϐ‹…ƒ–‹‘ǤԘ
Solution:
˜‡”›–‹‡–Š‡Ž‹‹–Šƒ•„‡‡”ƒ‹•‡†ǡ•—…ŠŽ‹‹–Šƒ•‘Ž›”‡ˆ‡””‡†–‘–Š‡”‡–‹”‡‡–‘‘”ƒˆ–‡”–Š‡†ƒ–‡‘™Š‹…Š
‹–™ƒ•”ƒ‹•‡†Ǥ‡…‡–Š‡Ž‹‹–‘–Š‡†ƒ–‡‘ˆ”‡–‹”‡‡––‹‡™‘—Ž†ƒŽ‘‡Šƒ˜‡–‘„‡…‘•‹†‡”‡†ǡ•‘‡š‡’–‹‘
™‹–Š”‡ˆ‡”‡…‡–‘–Š‡‡Šƒ…‡†Ž‹‹–™‹ŽŽ‘–ƒ’’Ž›‹–Š‹•…ƒ•‡Ǥ‹…‡–Š‡ƒ••‡••‡‡‹•ƒ‰‘˜‡”‡–’‡•‹‘‡”Ǥ
Š‡”‡‹•‘…‡‹Ž‹‰ˆ‘”‡–”ƒŽ‘”–ƒ–‡’‡•‹‘‡”•Ǥˆƒ••‡••‡‡‹•ƒ”‡–‹”‡‡ˆ”‘–Š‡…‹˜‹Ž•‡”˜‹…‡‘ˆƒ–ƒ–‡‘”Š‡Ž†
ƒ…‹˜‹Ž’‘•–—†‡”ƒ–ƒ–‡‘”Šƒ†‡˜‡„‡‡ƒ‡’Ž‘›‡‡‘ˆƒŽ‘…ƒŽƒ—–Š‘”‹–›ǡ–Š‡‰”ƒ–—‹–›ƒ‘—–ǡ–Šƒ–‹•”‡…‡‹˜‡†ǡ
‹• –‘–ƒŽŽ› ‡š‡’– ˜‹†‡ ‡…–‹‘ ͳͲȋͳͲȌȋ‹Ȍ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …– ‹””‡•’‡…–‹˜‡ ‘ˆ –Š‡ †ƒ–‡ ‘ˆ ”‡–‹”‡‡– ‘” –Š‡
‘–‹ϐ‹…ƒ–‹‘Ǥ
—”–Š‡”ˆ‘”
‘˜‡”‡–’‡•‹‘‡”•ƒš‹—
”ƒ–—‹–›ƒ‘—–™ƒ•‹…”‡ƒ•‡†–‘•ǤʹͲƒŠ™‹–Š‡ˆˆ‡…–ˆ”‘
ͲͳȀͲͳȀʹͲͳ͸—†‡”͹–Šƒ›‡…‘‡†ƒ–‹‘•ƒ•‘‡‘ˆ–Š‡’Ž‘›‡‡•‡Žˆƒ”‡‡ƒ•—”‡•–‘…‘’‡•ƒ–‡”‹•‹‰
‹ϐŽƒ–‹‘‘˜‡”–Š‡’‡”‹‘†ǤŽ‡ƒ•‡‘–‡–Šƒ––Š‹•‹•ƒš‹—ƒ‘—–™Š‹…Š–Š‡›…ƒ”‡…‡‹˜‡ƒ•
”ƒ–—‹–›„—––Š‡”‡
‹•‘…‡‹Ž‹‰‘ƒš‡š‡’–‹‘ˆ‘”
”ƒ–—‹–›ˆ‘”‡–”ƒŽ‘”–ƒ–‡’‡•‹‘‡”•Ǥ

‡ƒ˜‡…ƒ•Š‡–ȏ‡…–‹‘ͳͲȋͳͲȌȐ
‡ƒ˜‡‡…ƒ•Š‡–‡ƒ•‰‡––‹‰•ƒŽƒ”›‡“—‹˜ƒŽ‡––‘–Š‡—„‡”‘ˆŽ‡ƒ˜‡•™Š‹…Š™‡”‡‡–‹–Ž‡†–‘ƒ‡’Ž‘›‡‡„—–
‘– ƒ˜ƒ‹Ž‡† ȋ‹Ǥ‡Ǥ ‡ƒ”‡†ȌǤ ‡ƒ˜‡ …ƒ•Š‡– –ƒ‡ †—”‹‰ ‡’Ž‘›‡– ‹• ˆ—ŽŽ› –ƒšƒ„Ž‡ ˆ‘” ƒŽŽ ‡’Ž‘›‡‡•Ǥ ‡ƒ˜‡
…ƒ•Š‡––ƒ‡ƒ––Š‡–‹‡‘ˆ”‡–‹”‡‡–‹•‡š‡’–‡†ƒ•ˆ‘ŽŽ‘™•ǣǦ
‡ƒ˜‡…ƒ•Š‡–ƒŽƒ”›”‡…‡‹˜‡†„›‡’Ž‘›‡‡•‘ˆ–Š‡
‘˜‡”‡–ǡ‹•ˆ—ŽŽ›‡š‡’–ˆ”‘–ƒšǤ
‘”–Š‡‘Ǧ
‘˜‡”‡–‡’Ž‘›‡‡•ǡ–Š‡‡ƒ˜‡…ƒ•Š‡–ƒŽƒ”›•‘”‡…‡‹˜‡†‹•‡š‡’–ˆ”‘–ƒš–‘–Š‡‡š–‡–‘ˆ
Ž‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ƒȌ ͵ǡͲͲǡͲͲͲ
„Ȍ ‡ƒ˜‡ƒŽƒ”›ƒ…–—ƒŽŽ›”‡…‡‹˜‡†
…Ȍ ͳͲ‘–Šǯ•ƒŽƒ”›‘–Š‡„ƒ•‹•‘ˆƒ˜‡”ƒ‰‡ƒŽƒ”›†”ƒ™‹–Š‡Žƒ•–ͳͲ‘–Š•
†Ȍ ƒ•Š“—‹˜ƒŽ‡–‘ˆ‡ƒ˜‡•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ–Š‡‡’Ž‘›‡‡ƒ––Š‡–‹‡‘ˆ”‡–‹”‡‡–Ȁ†‡ƒ–Šǡ„ƒ•‡†‘
Žƒ•–ͳͲ‘–Šǯ•ƒ˜‡”ƒ‰‡•ƒŽƒ”›†”ƒ™Ǥƒ”‡†Ž‡ƒ˜‡‡–‹–Ž‡‡–’‡”›‡ƒ”…ƒ‘–‡š…‡‡†͵ͲǤ
Noteǣ‡”‡ƒŽƒ”›™‘—Ž†‡ƒƒ•‹…ήȋ‘Ž›–‘–Š‡‡š–‡–‘ˆˆ‘”‹‰’ƒ”–‘ˆ–Š‡”‡–‹”‡‡–„‡‡ϔ‹–•Ȍή‘‹••‹‘
ƒ•ƒά‘ˆ—”‘˜‡”ƒ†—„‡”‘ˆ†ƒ›•‹–Š‡‘–Š–‘„‡–ƒ‡ƒ–͹ͶǤ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 129

‡ƒ˜‡…ƒ•Š‡–ƒŽƒ”›

‡…‡‹˜‡†„› ‘Ǧ
‘˜‡”‡–

‘˜‡”‡– ‡’Ž‘›‡‡•
‡’Ž‘›‡‡•

‹•ˆ—ŽŽ› –•ŠƒŽŽ„‡‡š‡’–ˆ”‘–ƒš–‘–Š‡‡š–‡–‘ˆŽ‡ƒ•–‘ˆ
‡š‡’–‡† –Š‡ˆ‘ŽŽ‘™‹‰ǣ
ˆ”‘–ƒš
ƒȌ ͵ǡͲͲǡͲͲͲ
„Ȍ ‡ƒ˜‡ƒŽƒ”›ƒ…–—ƒŽŽ›”‡…‡‹˜‡†
…Ȍ ͳͲ‘–Š•ǯƒŽƒ”›‘–Š‡„ƒ•‹•‘ˆƒ˜‡”ƒ‰‡
ƒŽƒ”›†”ƒ™‹–Š‡Žƒ•–ͳͲ‘–Š•
†Ȍ ƒ•Š“—‹˜ƒŽ‡–‘ˆ‡ƒ˜‡•–ƒ†‹‰–‘–Š‡
…”‡†‹–‘ˆ–Š‡‡’Ž‘›‡‡ƒ––Š‡–‹‡‘ˆ
”‡–‹”‡‡–Ȁ†‡ƒ–Šǡ„ƒ•‡†‘Žƒ•–ͳͲ‘–Š•ǯ
ƒ˜‡”ƒ‰‡•ƒŽƒ”›†”ƒ™Ǥƒ”‡†Ž‡ƒ˜‡
‡–‹–Ž‡‡–’‡”›‡ƒ”…ƒ‘–‡š…‡‡†͵ͲǤ

Compensation on Voluntary Retirement

‡ˆ‡”• –‘ …‘’‡•ƒ–‹‘ ”‡…‡‹˜‡† ‘ ˜‘Ž—–ƒ”‹Ž› ”‡–‹”‡‡– ‘” –‡”‹ƒ–‹‘ ‘ˆ •‡”˜‹…‡ „‡ˆ‘”‡ –Š‡ †ƒ–‡ ‘ˆ ƒ…–—ƒŽ
”‡–‹”‡‡–Ǥ ‘Ž—–ƒ”› ”‡–‹”‡‡– …‘’‡•ƒ–‹‘ –‘ „‡ ‹…Ž—†‡† —†‡” –Š‡ Š‡ƒ† ƒŽƒ”› α ‘Ž—–ƒ”› ‡–‹”‡‡–
‘’‡•ƒ–‹‘Lessš‡’–‹‘u/s10(10C)
Exemption u/s 10(10C)

Types of Employee Ȉ ’Ž‘›‡‡•‘ˆ‡–”ƒŽ‘”–ƒ–‡

‘˜‡”‡–‘”‘…ƒŽ—–Š‘”‹–›‘”–ƒ–—–‘”›
‘”’‘”ƒ–‹‘
Ȉ ‘’ƒ›‘”‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›
Ȉ ‡…Žƒ”‡†‹˜‡”•‹–›ǡǡ‘–‹ϐ‹‡†‘”‘–‹ϐ‹‡†‹•–‹–—–‹‘•
‘†‹–‹‘•–‘„‡•ƒ–‹•ϐ‹‡† Ȉ ‘’‡•ƒ–‹‘”‡…‡‹˜‡†‘‘Ž—–ƒ”›‡–‹”‡‡–and
Ȉ Š‡•…Š‡‡‘ˆ‘Ž—–ƒ”›‡–‹”‡‡–•Š‘—Ž†„‡ƒ•’‡”rule 2BA
‘—–‘ˆš‡’–‹‘ Ȉ Actual Compensation received/receivable
‡ƒ•–‘ˆˆ‘ŽŽ‘™‹‰ Ȉ Rs. 5,00,000
Ȉ ͵‘–Š• Total Salary * ‘’Ž‡–‡†›‡ƒ”•‘ˆ•‡”˜‹…‡ȋƒ”–‘ˆ–Š‡•‡”˜‹…‡–‘
„‡‹‰‘”‡†
Ȉ —””‡–Salary’‡”‘–Šȗ ƒŽƒ…‡‘–Š•‘ˆ•‡”˜‹…‡Ž‡ˆ–
ƒŽƒ”›αƒ•‹…Ϊȋ”‡–‹”‡‡–‡‡ϐ‹–•ȌΪ‘‹••‹‘Ψ‘ˆ–—”‘˜‡”

Special Points:
ͳǤ ȏRule 2BA]:Š‡•…Š‡‡‘ˆ‘Ž—–ƒ”›‡–‹”‡‡–•Š‘—Ž†„‡ˆ”ƒ‡†‹ƒ……‘”†ƒ…‡™‹–Š„‡Ž‘™‰—‹†‡Ž‹‡•Ǥ
i. ’Ž‘›‡‡ •Š‘—Ž† Šƒ˜‡ …‘’Ž‡–‡† 10 years of service or 40 years of ageǤ ȏŠ‹• …‘†‹–‹‘ ‹• ‘–
ƒ’’Ž‹…ƒ„Ž‡‹–Š‡…ƒ•‡‘ˆƒ‡’Ž‘›‡‡‘ˆƒ’—„Ž‹…•‡…–‘”…‘’ƒ›ȐǤ
ii. …Š‡‡•Š‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡–‘all employeeȋ‡š…‡’–‹”‡…–‘”•ȌǤ
iii. …Š‡‡•Š‘—Ž†„‡†”ƒ™–‘”‡•—Ž–‹overall reduction in existing strength of employees.
 130 Lesson 4 Ȉ EP-TL

iv. Vacancy …ƒ—•‡†„›˜‘Ž—–ƒ”›”‡–‹”‡‡–•Š‘—Ž†‘–„‡ϐ‹ŽŽ‡†—’Ǥ

v. ‡–‹”‹‰‡’Ž‘›‡‡•ŠƒŽŽ‘–„‡‡’Ž‘›‡†‹‘–Š‡”…‘…‡”‘ˆ•ƒ‡ƒƒ‰‡‡–Ǥ
If the guidelines are not followed, exemption shall not be available
ʹǤ š‡’–‹‘—†‡”ͳͲȋͳͲȌ…ƒ„‡…Žƒ‹‡†‘Ž›once „›–Š‡••‡••‡‡Ǥ

Illustration 4:
”Ǥ”‡…‡‹˜‡†˜‘Ž—–ƒ”›”‡–‹”‡‡–…‘’‡•ƒ–‹‘‘ˆ•Ǥ͹ǡͲͲǡͲͲͲƒˆ–‡”͵Ͳ›‡ƒ”•Ͷ‘–Š•‘ˆ•‡”˜‹…‡Ǥ‡•–‹ŽŽŠƒ•
͸›‡ƒ”•‘ˆ•‡”˜‹…‡Ž‡ˆ–Ǥ––Š‡–‹‡‘ˆ˜‘Ž—–ƒ”›”‡–‹”‡‡–ǡŠ‡™ƒ•†”ƒ™‹‰„ƒ•‹…•ƒŽƒ”›•ǤʹͲǡͲͲͲ’ǤǤǢ‡ƒ”‡••
ƒŽŽ‘™ƒ…‡ȋ™Š‹…Šˆ‘”•’ƒ”–‘ˆ’ƒ›Ȍ•ǤͷǡͲͲͲ’ǤǤ‘’—–‡Š‹•–ƒšƒ„Ž‡˜‘Ž—–ƒ”›”‡–‹”‡‡–…‘’‡•ƒ–‹‘Ǥ
Solution:
‘Ž—–ƒ”›”‡–‹”‡‡–…‘’‡•ƒ–‹‘”‡…‡‹˜‡†•Ǥ͹ǡͲͲǡͲͲͲ
Less: š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͳͲȌȏ‘–‡ͳȐ•ǤȋͷǡͲͲǡͲͲͲȌ
ƒšƒ„Ž‡˜‘Ž—–ƒ”›”‡–‹”‡‡–…‘’‡•ƒ–‹‘•ǤʹǡͲͲǡͲͲͲ
Note 1: š‡’–‹‘‹•–‘–Š‡‡š–‡–‘ˆŽ‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ȋ‹Ȍ ‘’‡•ƒ–‹‘ƒ…–—ƒŽŽ›”‡…‡‹˜‡†α•Ǥ͹ǡͲͲǡͲͲͲ
ȋ‹‹Ȍ –ƒ–—–‘”›Ž‹‹–α•ǤͷǡͲͲǡͲͲͲ
ȋ‹‹‹Ȍ ƒ•–†”ƒ™•ƒŽƒ”›έ͵έ…‘’Ž‡–‡†›‡ƒ”•‘ˆ•‡”˜‹…‡
 αȋʹͲǡͲͲͲΪͷǡͲͲͲȌέ͵έ͵Ͳ›‡ƒ”•α•ǤʹʹǡͷͲǡͲͲͲ
ȋ‹˜Ȍ ƒ•–†”ƒ™•ƒŽƒ”›έ”‡ƒ‹‹‰‘–Š•‘ˆ•‡”˜‹…‡
 αȋʹͲǡͲͲͲΪͷǡͲͲͲȌέ͸έͳʹ‘–Š•α•ǤͳͺǡͲͲǡͲͲͲ

”‘ϐ‹–•‹Ž‹‡—‘ˆƒŽƒ”›ȏ‡…–‹‘ͳ͹ȋ͵ȌȐ
†‡”–Š‹•–Š‡ˆ‘ŽŽ‘™‹‰‹–‡•ƒ”‡‹…Ž—†‡†ǣ
ȋ‹Ȍ Š‡ƒ‘—–‘ˆƒ›…‘’‡•ƒ–‹‘†—‡–‘‘””‡…‡‹˜‡†„›ƒƒ••‡••‡‡ˆ”‘–Š‡‡’Ž‘›‡”‘”ˆ‘”‡”‡’Ž‘›‡”ƒ–
‘”‹…‘‡…–‹‘™‹–Š–Š‡–‡”‹ƒ–‹‘‘ˆŠ‹•‡’Ž‘›‡–ǤŠ‡–‡”‹ƒ–‹‘‘ˆ‡’Ž‘›‡–‡ƒ•”‡–‹”‡‡–ǡ
’”‡ƒ–—”‡–‡”‹ƒ–‹‘‘ˆ‡’Ž‘›‡–ǡ–‡”‹ƒ–‹‘„›†‡ƒ–Š‘”˜‘Ž—–ƒ”›”‡•‹‰ƒ–‹‘Ǥ
‡‡”ƒŽŽ›ǡ—†‡”–Š‡
…‘‡Ǧ–ƒš…–ǡ–Š‡‹…‘‡–Šƒ–‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹•‘Ž›ƒ”‡…‡‹’–™Š‹…Š‹•”‡˜‡—‡‹ƒ–—”‡Ǣ”‡…‡‹’–•‘ˆ
ƒ…ƒ’‹–ƒŽ ƒ–—”‡ƒ”‡‘–…Šƒ”‰‡ƒ„Ž‡ –‘–ƒš„—––Š‹•’”‘˜‹•‹‘…‘•–‹–—–‡•ƒ‡š…‡’–‹‘–‘–Š‹•”—Ž‡„‡…ƒ—•‡
…‘’‡•ƒ–‹‘”‡…‡‹˜‡†„›ƒ‡’Ž‘›‡‡ˆ‘”–‡”‹ƒ–‹‘‘ˆŠ‹•‡’Ž‘›‡–™‘—Ž†„‡ƒ…ƒ’‹–ƒŽ”‡…‡‹’–•‹…‡‹–
‹•”‡…‡‹˜‡†‹”‡’Žƒ…‡‡–‘ˆ–Š‡•‘—”…‡•‘ˆ‹…‘‡‹–•‡ŽˆǤ–‹ŽŽ‹–‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš„‡…ƒ—•‡‘ˆ–Š‡•’‡…‹ϐ‹…
’”‘˜‹•‹‘‹–Š‡…–Ǥ‘™‡˜‡”ǡ”‡Ž‹‡ˆ—†‡”‡…–‹‘ͺͻȋͳȌ™‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡ƒ••‡••‡‡‹…ƒ•‡•™Š‡”‡Š‡
‰‡–•‘‡›™Š‹…Š”‡’”‡•‡–•ƒ’”‘ϐ‹–‹Ž‹‡—‘ˆ•ƒŽƒ”›Ǥ
ȋ‹‹Ȍ Š‡ƒ‘—–‘ˆƒ›…‘’‡•ƒ–‹‘†—‡–‘‘””‡…‡‹˜‡†„›ƒ›ƒ••‡••‡‡ˆ”‘Š‹•‡’Ž‘›‡”‹…‘‡…–‹‘™‹–Š
–Š‡‘†‹ϐ‹…ƒ–‹‘‘ˆ–Š‡–‡”•ƒ†…‘†‹–‹‘•”‡Žƒ–‹‰–‘‡’Ž‘›‡–Ǥ ‘”‡šƒ’Ž‡ǡ™Š‡”‡ƒ‡’Ž‘›‡”™ƒ–•
–‘…—–†‘™–Š‡•ƒŽƒ”›’ƒ›ƒ„Ž‡–‘–Š‡‡’Ž‘›‡‡ǡ–Š‡Ž—’•—’ƒ‹†–‘…‘’‡•ƒ–‡–Š‡‡’Ž‘›‡‡•ŠƒŽŽ„‡
–”‡ƒ–‡†ƒ•’”‘ϐ‹–‹Ž‹‡—‘ˆ•ƒŽƒ”›Ǥ–Š‡•ƒ‡™ƒ›ǡ™Š‡”‡–Š‡”‡—‡”ƒ–‹‘ˆ‘”•‡”˜‹…‡•‹•’ƒ‹†ƒ––Š‡‡†‘ˆ
–Š‡’‡”‹‘†‘ˆ‡’Ž‘›‡–‘”ƒŽ—’•—”‡—‡”ƒ–‹‘‹•’ƒ‹†ƒ––Š‡„‡‰‹‹‰‘ˆ‡’Ž‘›‡–ˆ‘”ƒ—„‡”
‘ˆ›‡ƒ”•ǡ•—…Š’ƒ›‡–•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•’”‘ϐ‹–‹Ž‹‡—‘ˆ•ƒŽƒ”›Ǥ
ȋ‹‹‹Ȍ ›ƒ‘—–†—‡–‘‘””‡…‡‹˜‡†ǡ™Š‡–Š‡”‹Ž—’•—‘”‘–Š‡”™‹•‡ǡ„›ƒ›ƒ••‡••‡‡ˆ”‘ƒ›’‡”•‘ǦȋȌ
„‡ˆ‘”‡ Š‹• Œ‘‹‹‰ ƒ› ‡’Ž‘›‡– ™‹–Š –Šƒ– ’‡”•‘Ǣ ‘” ȋȌ ƒˆ–‡” …‡••ƒ–‹‘ ‘ˆ Š‹• ‡’Ž‘›‡– ™‹–Š –Šƒ–
’‡”•‘Ǥ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 131

ȋ‹˜Ȍ ›’ƒ›‡–‘–Š‡”–Šƒ–Š‡ˆ‘ŽŽ‘™‹‰’ƒ›‡–†—‡–‘‘””‡…‡‹˜‡†„›ƒ••‡••‡‡ˆ”‘ƒ‡’Ž‘›‡”‘”ƒˆ‘”‡”
‡’Ž‘›‡”‘”ˆ”‘ƒ’”‘˜‹†‡–‘”‘–Š‡”ˆ—†ǡother than
”ƒ–—‹–›ȏ‡…–‹‘ͳͲȋͳͲȌȐǡ‡•‹‘ȏ‡…–‹‘ͳͲȋͳͲȌȐǡ
ȏ‡…–‹‘ͳͲȋͳ͵ȌȐǡ”‘˜‹†‡– —†Ȁ—„Ž‹…”‘˜‹†‡– —†Ȁ‡…‘‰‹•‡†”‘˜‹†‡– —†Ǥ
ȋ˜Ȍ ›•—”‡…‡‹˜‡†—†‡”‡›ƒ•—”ƒ…‡‘Ž‹…›Ǥ
ȏ‡…–‹‘ͳ͹ȋʹȌȐ
‡”“—‹•‹–‡ƒ›„‡†‡ϐ‹‡†ƒ•ƒ›…ƒ•—ƒŽ‡‘Ž—‡–‘”„‡‡ϐ‹–ƒ––ƒ…Š‡†–‘ƒ‘ˆϐ‹…‡‘”’‘•‹–‹‘‹ƒ††‹–‹‘–‘•ƒŽƒ”›
‘”™ƒ‰‡•Ǥ–ƒŽ•‘†‡‘–‡••‘‡–Š‹‰–Šƒ–„‡‡ϐ‹–•ƒƒ„›‰‘‹‰‹–‘Š‹•‘™’‘…‡–Ǥ‡”“—‹•‹–‡•ƒ›„‡’”‘˜‹†‡†
‹…ƒ•Š‘”‹‹†Ǥ‘™‡˜‡”ǡ’‡”“—‹•‹–‡•ƒ”‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dz‘Ž›‹ˆ–Š‡›ƒ”‡ǣ
ƒǤ ƒŽŽ‘™‡†„›ƒ‡’Ž‘›‡”–‘Š‹•‡’Ž‘›‡‡Ǣ
„Ǥ ƒŽŽ‘™‡††—”‹‰–Š‡…‘–‹—ƒ…‡‘ˆ‡’Ž‘›‡–Ǣ
…Ǥ †‹”‡…–Ž›†‡’‡†‡–—’‘•‡”˜‹…‡Ǣ
†Ǥ ”‡•—Ž–‹‰‹–Š‡ƒ–—”‡‘ˆ’‡”•‘ƒŽƒ†˜ƒ–ƒ‰‡–‘–Š‡‡’Ž‘›‡‡Ǣƒ†
‡Ǥ †‡”‹˜‡†„›˜‹”–—‡‘ˆ‡’Ž‘›‡”ǯ•ƒ—–Š‘”‹–›Ǥ
–‹•‘–‡…‡••ƒ”›–Šƒ–ƒ”‡…—””‹‰ƒ†”‡‰—Žƒ””‡…‡‹’–ƒŽ‘‡‹•ƒ’‡”“—‹•‹–‡Ǥ˜‡ƒ…ƒ•—ƒŽƒ†‘Ǧ”‡…—””‹‰”‡…‡‹’–
…ƒ„‡’‡”“—‹•‹–‡‹ˆ–Š‡ƒˆ‘”‡•ƒ‹†…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†Ǥ
›ˆƒ…‹Ž‹–›Ȁ„‡‡ϐ‹––Šƒ–‹•‰”ƒ–‡†„›–Š‡‡’Ž‘›‡”ǡ–Š‡—•‡‘ˆ™Š‹…Š‹•‡Œ‘›‡†„›–Š‡‡’Ž‘›‡‡‘”ƒ›‡„‡”‘ˆ
–Š‡‡’Ž‘›‡‡ǯ•Š‘—•‡Š‘Ž†ǡ‹•…‘•–”—‡†ƒ•ƒ’‡”“—‹•‹–‡—†‡”–Š‡…‘‡ƒš…–ǡƒ†Š‡…‡ƒ––”ƒ…–•–ƒšǤ

ƒšƒ„Ž‡‡”“—‹•‹–‡•

Ȉ ‡– ”‡‡‡•‹†‡–‹ƒŽ……‘‘†ƒ–‹‘
Ȉ –‡”‡•– ”‡‡Ȁ‘…‡••‹‘ƒŽ‘ƒ
Ȉ •‡‘ˆ‘˜ƒ„Ž‡ƒ••‡–•„›‡’Ž‘›‡‡Ȁƒ›‡„‡”‘ˆŠ‹•Š‘—•‡Š‘Ž†
Ȉ ”ƒ•ˆ‡”‘ˆ‘˜ƒ„Ž‡ƒ••‡–•
Ȉ ”‘˜‹•‹‘‘ˆ‰ƒ•Ȁ‡Ž‡…–”‹…‹–›Ȁ™ƒ–‡”
Ȉ ”‘˜‹•‹‘‘ˆˆ”‡‡Ȁ…‘…‡••‹‘ƒŽ‡†—…ƒ–‹‘ƒŽˆƒ…‹Ž‹–‹‡•
Ȉ ”‡†‹–ƒ”†š’‡•‡•
Ȉ Ž—„‡š’‡†‹–—”‡
Ȉ ‡ƒŽ–ŠŽ—„ǡ’‘”–•ǡ‹‹Žƒ”ˆƒ…‹Ž‹–‹‡•
Ȉ ™‡ƒ–“—‹–›

ƒšǦˆ”‡‡‡”“—‹•‹–‡•ȋ‹ƒŽŽ…ƒ•‡•Ȍ

Ȉ ‡†‹…ƒŽ ƒ…‹Ž‹–‹‡•
Ȉ ‡ˆ”‡•Š‡–
Ȉ —„•‹†‹œ‡†Ž—…Š‘”†‹‡”
Ȉ ‡…”‡ƒ–‹‘ƒŽˆƒ…‹Ž‹–‹‡•
Ȉ ‡Ž‡’Š‘‡ˆƒ…‹Ž‹–›
 132 Lesson 4 Ȉ EP-TL

Ȉ ”ƒ•’‘”–
Ȉ ‡”•‘ƒŽƒ……‹†‡–‹•—”ƒ…‡
Ȉ ‡ˆ”‡•Š‡”‘—”•‡
Ȉ ”‡‡”ƒ–‹‘•
Ȉ ‘’—–‡”ȀŽƒ’–‘’•
Ȉ ‡–ˆ”‡‡Š‘—•‡•Ȁ…‘˜‡›ƒ…‡
Ȉ ’Ž‘›‡”ǯ•‘–”‹„—–‹‘
Ȉ —ƒŽ”‡‹—

ȋȌ ƒšƒ„Ž‡ ‡”“—‹•‹–‡•ǣ ‡ ‡‡† –‘ —†‡”•–ƒ† –Š‡ ˜ƒŽ—ƒ–‹‘ ‘ˆ ’‡”“—‹•‹–‡•Ǥ Š‡ –ƒ„Ž‡ ƒ’’‡†‡† „‡Ž‘™ǡ
•—ƒ”‹•‡•–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ˜ƒ”‹‘—•’‡”“—‹•‹–‡•‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡ƒ••‡••‡‡•Ǥ

Sl. Category of
‡”“—‹•‹–‡ ƒŽ—‡‘ˆ’‡”“—‹•‹–‡•
No. Employee
ͳǤ ‡– ”‡‡
‘˜‡”‡– ‹…‡…‡ ‡‡†‡–‡”‹‡†ƒ•’‡”–Š‡
‘˜‡”‡–—Ž‡•ǡƒ•”‡†—…‡†
‡•‹†‡–‹ƒŽ ’Ž‘›‡‡ „› ”‡– ƒ…–—ƒŽŽ› ’ƒ‹† „› –Š‡ ‡’Ž‘›‡‡ ˆ‘” —ˆ—”‹•Š‡†
……‘‘†ƒ–‹‘ ƒ……‘‘†ƒ–‹‘Ǥ
For a furnished accommodationǡ ͳͲΨ ’ǤƒǤ ‘ˆ –Š‡ ˆ—”‹–—”‡…‘•–
‹•ƒ††‡†–‘–Š‡˜ƒŽ—‡‘„–ƒ‹‡†ƒ„‘˜‡ˆ‘” —ˆ—”‹•Š‡†Ǥ
 …ƒ•‡ –Š‡ furniture is hiredǡ –Š‡ ƒ…–—ƒŽ Š‹”‡ …Šƒ”‰‡• ™‘—Ž† „‡
ƒ††‡†–‘–Š‡˜ƒŽ—‡‘„–ƒ‹‡†ƒ„‘˜‡ˆ‘” —ˆ—”‹•Š‡†Ǥ
‘Ǧ
‘˜‡”‡– In case of Unfurnished Accommodation;
’Ž‘›‡‡
ƒȌˆ–Š‡ƒ……‘‘†ƒ–‹‘‹•‘™‡†„›–Š‡‡’Ž‘›‡”ǡ–Š‡  ˜ƒŽ—‡
™‘—Ž†„‡„ƒ•‡†‘–Š‡’‘’—Žƒ–‹‘ǡ‹Ǥ‡Ǥǡ
‹Ǥ ‹ˆ‹…‹–‹‡•Šƒ˜‹‰ƒ’‘’—Žƒ–‹‘‘ˆεʹͷƒ…•ȋʹͲͲͳ
‡•—•ȌǦͳͷΨ‘ˆƒŽƒ”›Ǣ
‹‹Ǥ ‹ˆ–Š‡’‘’—Žƒ–‹‘‹•„‡–™‡‡ͳͲƒ…•—’–‘ʹͷƒ…•
ȂͳͲΨ‘ˆƒŽƒ”›Ǣ
‹‹‹Ȍ ‡Ž•‡͹ǤͷΨ‘ˆƒŽƒ”›
„Ȍ  ˆ –Š‡ ƒ……‘‘†ƒ–‹‘ ‹• –ƒ‡ ‘ Ž‡ƒ•‡ „› –Š‡‡’Ž‘›‡”ǡ
–Š‡ ƒ…–—ƒŽ ˜ƒŽ—‡ ‘ˆ Ž‡ƒ•‡ ”‡–ƒŽ• ’ƒ‹† „› –Š‡ ‡’Ž‘›‡”
•—„Œ‡…––‘ƒƒš‹—‘ˆͳͷΨ‘ˆƒŽƒ”›‹•…‘•‹†‡”‡†ƒ•
ƒŽ—‡Ǥ
For a furnished accommodationǡ ͳͲΨ ’ǤƒǤ ‘ˆ –Š‡ˆ—”‹–—”‡…‘•–‹•
ƒ††‡†–‘–Š‡˜ƒŽ—‡‘„–ƒ‹‡†ƒ„‘˜‡ˆ‘” —ˆ—”‹•Š‡†Ǥ
In case the furniture is hiredǡ–Š‡ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡• ™‘—Ž† „‡
ƒ††‡†–‘–Š‡˜ƒŽ—‡‘„–ƒ‹‡†ƒ„‘˜‡ˆ‘” —ˆ—”‹•Š‡†Ǥ
ƒŽŽ…ƒ•‡•ǡƒ›ƒ‘—–”‡…‘˜‡”‡†ˆ”‘–Š‡‡’Ž‘›‡‡ •Š‘—Ž†„‡
”‡†—…‡†–‘ƒ””‹˜‡ƒ––Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡ ’‡”“—‹•‹–‡
Š‡”‡ –Š‡ ƒ……‘‘†ƒ–‹‘ ‹• ’”‘˜‹†‡† „› –Š‡ ‡’Ž‘›‡” ‹ ƒ
Š‘–‡Ž ȋ‡š…‡’– ™Š‡”‡ –Š‡ ‡’Ž‘›‡‡ ‹• ’”‘˜‹†‡† •—…Š
ƒ……‘‘†ƒ–‹‘ ˆ‘” ƒ ’‡”‹‘† ‘– ‡š…‡‡†‹‰ ‹ ƒ‰‰”‡‰ƒ–‡ ͳͷ
†ƒ›•‘–Š‡–”ƒ•ˆ‡”ˆ”‘‘‡’Žƒ…‡–‘ ƒ‘–Š‡”Ȍǣ
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 133

Š‡’‡”“—‹•‹–‡•˜ƒŽ—‡™‘—Ž†„‡ʹͶΨ‘ˆ•ƒŽƒ”›’ƒ‹†‘”’ƒ›ƒ„Ž‡ˆ‘”
–Š‡’”‡˜‹‘—•›‡ƒ”‘”–Š‡ƒ…–—ƒŽ…Šƒ”‰‡•’ƒ‹†‘”’ƒ›ƒ„Ž‡–‘•—…ŠŠ‘–‡Žǡ
™Š‹…Š‹•Ž‘™‡”ǡˆ‘”–Š‡’‡”‹‘††—”‹‰™Š‹…Š•—…Šƒ……‘‘†ƒ–‹‘‹•
’”‘˜‹†‡†ƒ•”‡†—…‡†„›–Š‡”‡–ǡ‹ˆƒ›ǡƒ…–—ƒŽŽ›’ƒ‹†‘”’ƒ›ƒ„Ž‡„›
–Š‡‡’Ž‘›‡‡•Ǥ
ʹǤ –‡”‡•– ”‡‡Ȁ ŽŽ‡’Ž‘›‡‡• Š‡”‡–Š‡‡’Ž‘›‡”‰”ƒ–•ƒŽ‘ƒ–‘ƒ‡’Ž‘›‡‡ǡ‡š…‡‡†‹‰
‘…‡••‹‘ƒŽ ʹͲͲͲͲǡ–Š‡‹–‡”‡•–ƒ––Š‡”ƒ–‡…Šƒ”‰‡†„›ǡƒ•‘–Š‡ϐ‹”•–†ƒ–‡‘ˆ
Loan –Š‡ ”‡Ž‡˜ƒ– ǡ ƒ– ƒš‹— ‘—–•–ƒ†‹‰ ‘–ŠŽ› „ƒŽƒ…‡ ƒ•
”‡†—…‡†„›–Š‡–‡”‡•–ƒ…–—ƒŽŽ›…Šƒ”‰‡†–‘–Š‡‡’Ž‘›‡‡Ǣ™‘—Ž†„‡
–Š‡ –ƒšƒ„Ž‡ ˜ƒŽ—‡ ‘ˆ –Š‡ ’‡”“—‹•‹–‡Ǥ ‘™ ˆ‘” ‡†‹…ƒŽ ’—”’‘•‡ ‹•
‡š‡’–‡†Ǥ
͵Ǥ •‡‘ˆ‘˜ƒ„Ž‡ ŽŽ‡’Ž‘›‡‡• ͳͲΨ’ǤƒǤ‘ˆ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–ǡ‹ˆ‹–‹•‘™‡†„›–Š‡‡’Ž‘›‡”
ƒ••‡–•„› –Š‡ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡•‹…—””‡†„›–Š‡‡’Ž‘›‡”‹ˆ–Š‡ƒ••‡–‹•
‡’Ž‘›‡‡Ȁƒ› Š‹”‡†ƒ•”‡†—…‡†„›–Š‡ƒ‘—–ǡ‹ˆƒ›ǡ’ƒ‹†‘””‡…‘˜‡”‡†ˆ”‘–Š‡
‡„‡”‘ˆŠ‹• ‡’Ž‘›‡‡ˆ‘”•—…Š—•‡™‘—Ž†„‡–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡Ǥ
Š‘—•‡Š‘Ž†
Noteǣ •‡ ‘ˆ Žƒ’–‘’• ƒ† …‘’—–‡”• ™‘—Ž†ǯ– ƒ––”ƒ…– taxability as
’‡”“—‹•‹–‡•Ǥ

ͶǤ ”ƒ•ˆ‡”‘ˆ ŽŽ‡’Ž‘›‡‡• ˆ ‘’—–‡”•Ȁ‡Ž‡…–”‘‹… ‹–‡• ƒ”‡ –”ƒ•ˆ‡””‡†ǡ ͷͲΨ ‡’”‡…‹ƒ–‹‘

‘˜ƒ„Ž‡ƒ••‡–• ’ǤƒǤ ȋȌ ˆ‘” ‡˜‡”› …‘’Ž‡–‡† ›‡ƒ” ‘ˆ —•ƒ‰‡Ǣ ‹ˆ ‘–‘” …ƒ”• ƒ”‡
–”ƒ•ˆ‡””‡†ǡʹͲΨ‡’”‡…‹ƒ–‹‘’ǤƒǤȋȌˆ‘”‡˜‡”›…‘’Ž‡–‡†›‡ƒ”
‘ˆ—•ƒ‰‡Ǣƒ†ˆ‘”ƒŽŽ‘–Š‡”ƒ••‡–•–”ƒ•ˆ‡””‡†ǡͳͲΨ‡’”‡…‹ƒ–‹‘’ǤƒǤ
ȋȌ ˆ‘” ‡˜‡”› …‘’Ž‡–‡† ›‡ƒ” ‘ˆ —•ƒ‰‡ ™‘—Ž† „‡ –”‡ƒ–‡† ƒ• –Š‡
–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡‡–‘ˆƒ›ƒ‘—–•‘”‡…‘˜‡”‡†ˆ”‘–Š‡
‡’Ž‘›‡‡Ǥ
ͷǤ ”‘˜‹•‹‘‘ˆ ŽŽ‡’Ž‘›‡‡• Š‡ ˜ƒŽ—‡ ‘ˆ „‡‡ϐ‹– –‘ –Š‡ ‡’Ž‘›‡‡ ”‡•—Ž–‹‰ ˆ”‘ –Š‡ •—’’Ž› ‘ˆ
‰ƒ•Ȁ ‰ƒ•ǡ‡Ž‡…–”‹…‡‡”‰›‘”™ƒ–‡”ˆ‘”Š‹•Š‘—•‡Š‘Ž†…‘•—’–‹‘•ŠƒŽŽ„‡
‡Ž‡…–”‹…‹–›Ȁ †‡–‡”‹‡†ƒ•–Š‡•—‡“—ƒŽ–‘–Š‡ƒ‘—–’ƒ‹†‘–Šƒ–ƒ……‘—–„›
™ƒ–‡” –Š‡ ‡’Ž‘›‡” –‘ –Š‡ ƒ‰‡…› •—’’Ž›‹‰ –Š‡ ‰ƒ•ǡ ‡Ž‡…–”‹… ‡‡”‰› ‘”
™ƒ–‡”ǤŠ‡”‡•—…Š•—’’Ž›‹•ƒ†‡ˆ”‘–Š‡•‘—”…‡•‘™‡†„›–Š‡
‡’Ž‘›‡”ǡ™‹–Š‘—–’—”…Šƒ•‹‰–Š‡ˆ”‘ƒ›‘–Š‡”‘—–•‹†‡ƒ‰‡…›ǡ
–Š‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡•™‘—Ž†„‡–Š‡ƒ—ˆƒ…–—”‹‰…‘•–’‡”—‹–
‹…—””‡†„›–Š‡‡’Ž‘›‡”ǤŠ‡”‡–Š‡‡’Ž‘›‡‡‹•’ƒ›‹‰ƒ›ƒ‘—–
‹ ”‡•’‡…– ‘ˆ •—…Š •‡”˜‹…‡•ǡ –Š‡ ƒ‘—– •‘ ’ƒ‹† •ŠƒŽŽ „‡ †‡†—…–‡†
ˆ”‘–Š‡˜ƒŽ—‡•‘ƒ””‹˜‡†ƒ–Ǥ
͸Ǥ ”‘˜‹•‹‘‘ˆ ŽŽ‡’Ž‘›‡‡• ‘—– ƒ…–—ƒŽŽ› ‡š’‡†‡† „› –Š‡ ‡’Ž‘›‡” ‡– ‘ˆ –Š‡ ƒ‘—– •‘
ˆ”‡‡Ȁ ”‡…‘˜‡”‡†Ǥ‘™‡˜‡”ǡ‹ˆ–Š‡‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘‹•‘™‡†„›–Š‡
…‘…‡••‹‘ƒŽ ‡’Ž‘›‡”ǡ ƒ† ˆ”‡‡ ‡†—…ƒ–‹‘ƒŽ ˆƒ…‹Ž‹–‹‡• ƒ”‡ ’”‘˜‹†‡† –‘ –Š‡
‡†—…ƒ–‹‘ƒŽ ‡’Ž‘›‡‡ǯ•…Š‹Ž†”‡ǡ–Š‡”‡™‘—Ž†ǯ–„‡ƒ›’‡”“—‹•‹–‡ƒ•Ž‘‰ƒ•–Š‡
ˆƒ…‹Ž‹–‹‡• ˜ƒŽ—‡‘ˆ„‡‡ϐ‹–‹ƒ‘–Š‹•δͳͲͲͲǤ›ƒ‘—–”‡…‘˜‡”‡†
ˆ”‘–Š‡‡’Ž‘›‡‡™‘—Ž†„‡”‡†—…‡†Ǥ
͹Ǥ ”‡†‹–ƒ”† ŽŽ‡’Ž‘›‡‡• ‡„‡”•Š‹’ˆ‡‡•Ȁ—ƒŽˆ‡‡•‹…—””‡†„›–Š‡‡’Ž‘›‡”ǡ‘ƒ…ƒ”†
š’‡•‡• ’”‘˜‹†‡†–‘–Š‡‡’Ž‘›‡‡ǡ™‘—Ž†„‡–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡
‡–‘ˆ–Š‡ƒ‘—–ǡ‹ˆƒ›ǡ”‡…‘˜‡”‡†ˆ”‘Š‹Ǥ

ͺǤ Ž—„ ŽŽ‡’Ž‘›‡‡• ‘•– ‹…—””‡† „› –Š‡ ‡’Ž‘›‡” ƒ– ƒ…–—ƒŽǡ ‡– ‘ˆ ”‡…‘˜‡”› ˆ”‘ –Š‡
‡š’‡†‹–—”‡ ‡’Ž‘›‡‡™‘—Ž†„‡–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡Ǥ‘™‡˜‡”ǡ‹…ƒ•‡
–Š‡‡’Ž‘›‡‡‡Œ‘›•‘”’‘”ƒ–‡‡„‡”•Š‹’‹ƒ…Ž—„ǡ–Š‡˜ƒŽ—‡‘ˆ
„‡‡ϐ‹– ™‘—Ž†ǯ– ‹…Ž—†‡ –Š‡ ‹‹–‹ƒŽ ‡„‡”•Š‹’ ’ƒ‹† „› –Š‡
’Ž‘›‡”–‘ƒ…“—‹”‡–Š‡…‘”’‘”ƒ–‡‡„‡”•Š‹’Ǥ
 134 Lesson 4 Ȉ EP-TL

ͻǤ ‡ƒŽ–ŠŽ—„ǡ ŽŽ‡’Ž‘›‡‡• ‘ ’‡”“—‹•‹–‡ ‹ˆ ’”‘˜‹†‡† —‹ˆ‘”Ž› „› –Š‡ ‡’Ž‘›‡” –‘ ƒŽŽ
’‘”–•ǡ‹‹Žƒ” ‡’Ž‘›‡‡•Ǥ
ˆƒ…‹Ž‹–‹‡•
ͳͲǤ ™‡ƒ–“—‹–› ŽŽ‡’Ž‘›‡‡• In case where, on the date of exercising the option, the share
of the company is listed on a recognised stock exchangeǡ–Š‡
ˆƒ‹” ƒ”‡– ˜ƒŽ—‡ ȋ Ȍ ™‘—Ž† „‡ –Š‡ ƒ˜‡”ƒ‰‡ ‘ˆ –Š‡ ‘’‡‹‰
ƒ† …Ž‘•‹‰ ’”‹…‡ ‘ˆ –Š‡ •Šƒ”‡ ‘ –Šƒ– †ƒ–‡ ‘ –Š‡ •ƒ‹† •–‘…
‡š…Šƒ‰‡Ǥˆ–Š‡•Šƒ”‡•‘ˆ–Š‡…‘’ƒ›ƒ”‡Ž‹•–‡†‘‘”‡–Šƒ
‘‡ •–‘… ‡š…Šƒ‰‡ǡ –Š‡  ™‘—Ž† „‡ –Š‡ ƒ˜‡”ƒ‰‡ ‘ˆ –Š‡
‘’‡‹‰ƒ†…Ž‘•‹‰’”‹…‡•‘ˆ–Š‡•Šƒ”‡‘–Š‡”‡…‘‰‹•‡†•–‘…
‡š…Šƒ‰‡ ™Š‹…Š ”‡…‘”†• –Š‡ Š‹‰Š‡•– ˜‘Ž—‡ ‘ˆ –”ƒ†‹‰ ‹ –Š‡
•Šƒ”‡Ǥ…ƒ•‡ǡ‘–Š‡†ƒ–‡‘ˆ–Š‡‡š‡”…‹•‹‰‘ˆ–Š‡‘’–‹‘ǡ‹ˆ–Š‡”‡
™ƒ•‘–”ƒ†‹‰‹–Š‡•Šƒ”‡ǡ–Š‡ ™‘—Ž†„‡–Š‡…Ž‘•‹‰’”‹…‡
‘–Š‡”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡ǡ‘ƒ†ƒ–‡…Ž‘•‡•––‘‡š‡”…‹•‹‰
–Š‡‘’–‹‘ǡ‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Šƒ–†ƒ–‡ǡƒ†‹ˆ–Š‡•Šƒ”‡•‘ˆ–Š‡
…‘’ƒ›ƒ”‡Ž‹•–‡†‘‘”‡–Šƒ‘‡•–‘…‡š…Šƒ‰‡ǡ–Š‡ 
™‘—Ž† „‡ –Š‡…Ž‘•‹‰’”‹…‡‘ˆ–Š‡•Šƒ”‡‘–Š‡”‡…‘‰‹•‡†•–‘…
‡š…Šƒ‰‡™Š‹…Š”‡…‘”†•–Š‡Š‹‰Š‡•–˜‘Ž—‡‘ˆ–”ƒ†‹‰‹–Š‡•Šƒ”‡Ǥ

 …ƒ•‡ –Š‡ •Šƒ”‡• ‘ˆ –Š‡ …‘’ƒ› ƒ”‡ ‘– Ž‹•–‡† ‘ ƒ›
”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡ǡ–Š‡ ™‘—Ž†„‡–Šƒ–ƒ•†‡–‡”‹‡†
„› –Š‡ ‡”…Šƒ– ƒ‡” ‘ –Š‡ •’‡…‹ϐ‹… †ƒ–‡ǡ ‹Ǥ‡Ǥǡ –Š‡ †ƒ–‡ ‘ˆ
‡š‡”…‹•‹‰–Š‡‘’–‹‘‘”ƒ›†ƒ–‡‡ƒ”Ž‹‡”‘–‡š…‡‡†‹‰ͳͺͲ†ƒ›•
’”‹‘”–‘–Š‡†ƒ–‡‘ˆ‡š‡”…‹•‡‘ˆ–Š‡‘’–‹‘Ǥ

‘–‘”ƒ”•Ȃ‡”“—‹•‹–‡•ƒŽ—ƒ–‹‘
Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ—•‡‘ˆ‘–‘”…ƒ”•ƒ”‡†‡ƒŽ–™‹–Š•‡’ƒ”ƒ–‡Ž›ǡƒ•‹–‹••‹–—ƒ–‹‘ƒŽǡƒ•—†‡”ǣ
Where the Expenses are met by the employer

Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employerǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡wholly
ˆ‘”ˆϔ‹…‹ƒŽ’—”’‘•‡•ǡ–Š‡”‡‹•‘’‡”“—‹•‹–‡Ǥ
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employerǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡wholly
for Personal purposesǡ–Š‡”—‹‰ƒ†ƒ‹–‡ƒ…‡…Šƒ”‰‡•Ȁ™‡ƒ”Ƭ–‡ƒ”ȀŠ‹”‡…Šƒ”‰‡•Ȁ†”‹˜‡”ǯ••ƒŽƒ”›
™‘—Ž†„‡–”‡ƒ–‡†ƒ•–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡‡–‘ˆ–Š‡ƒ‘—–•‘”‡…‘˜‡”‡†ˆ”‘–Š‡‡’Ž‘›‡‡Ǥ
ȋ…Ž—†‹‰‡’”‡…‹ƒ–‹‘̷ͳͲΨ’ǤƒǤ‘„ƒ•‹•Ȍ
Ȉ ˆ–Š‡ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employerǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡
’ƒ”–Ž›ˆ‘”ˆϔ‹…‹ƒŽƒ†’ƒ”–Ž›ˆ‘”‡”•‘ƒŽ’—”’‘•‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡„ƒ•‡†‘
–Š‡……ȋ…—„‹……ƒ’ƒ…‹–›Ȍ‘ˆ–Š‡‡‰‹‡ǡƒ•—†‡”ǣ
ƒȌ —’–‘ͳǤ͸Ž‹–”‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡ͳͺͲͲ’
„Ȍ εͳǤ͸Ž‹–”‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡ʹͶͲͲ’
…Ȍ ‹ˆ…Šƒ—ˆˆ‡”‹•ƒŽ•‘’”‘˜‹†‡†ǡͻͲͲ’‹•–‘„‡ƒ††‡†–‘‡‹–Š‡”‘ˆ–Š‡ƒ„‘˜‡ǡ†‡’‡†‹‰‘–Š‡‡‰‹‡
…ƒ’ƒ…‹–›Ǥȋ–Š‹•…ƒ•‡”‡…‘˜‡”›‹•‘–†‡†—…–‹„Ž‡ȌǤ
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employeeǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡wholly
ˆ‘”ˆϔ‹…‹ƒŽ’—”’‘•‡•ǡ–Š‡”‡‹•‘’‡”“—‹•‹–‡Ǥ
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employeeǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡wholly for
Personal purposesǡ–Š‡ƒ…–—ƒŽ‡š’‡†‹–—”‡•‘‹…—””‡†™‘—Ž†„‡–”‡ƒ–‡†ƒ•–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡Ǥ
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employeeǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡partly
ˆ‘” ˆϔ‹…‹ƒŽ ƒ† ’ƒ”–Ž› ˆ‘” ‡”•‘ƒŽ ’—”’‘•‡•ǡ –Š‡ –ƒšƒ„Ž‡ ˜ƒŽ—‡ ‘ˆ –Š‡ ’‡”“—‹•‹–‡ ™‘—Ž† „‡ –Š‡ ƒ…–—ƒŽ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 135

‡š’‡†‹–—”‡‹…—””‡†„›–Š‡‡’Ž‘›‡”ƒ•”‡†—…‡†„›–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡†‡–‡”‹‡†ƒ„‘˜‡
„ƒ•‹•–Š‡‡‰‹‡…ƒ’ƒ…‹–›Ǥ
Where the Expenses are met by the employee
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employerǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡‡Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡wholly
ˆ‘”ˆϔ‹…‹ƒŽ’—”’‘•‡•ǡ–Š‡”‡‹•‘’‡”“—‹•‹–‡
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employerǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡‡Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡wholly
for Personal purposesǡ–Š‡™‡ƒ”Ƭ–‡ƒ”ȀŠ‹”‡…Šƒ”‰‡•Ȁ†”‹˜‡”ǯ••ƒŽƒ”›™‘—Ž†„‡–”‡ƒ–‡†ƒ•–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡
‘ˆ–Š‡’‡”“—‹•‹–‡Ǥȋ…Ž—†‹‰‡’”‡…‹ƒ–‹‘̷ͳͲΨ’ǤƒǤ‘„ƒ•‹•Ȍ
Ȉ ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡employerǢ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡‡Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡partly
ˆ‘”ˆϔ‹…‹ƒŽƒ†’ƒ”–Ž›ˆ‘”‡”•‘ƒŽ’—”’‘•‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡„ƒ•‡†‘–Š‡……
‘ˆ–Š‡‡‰‹‡ǡƒ•—†‡”ǣ
ƒȌ —’–‘ͳǤ͸Ž‹–”‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡͸ͲͲ’
„Ȍ εͳǤ͸Ž‹–”‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡ͻͲͲ’
…Ȍ ‹ˆ…Šƒ—ˆˆ‡”‹•ƒŽ•‘’”‘˜‹†‡†ǡͻͲͲ’‹•–‘„‡ƒ††‡†–‘‡‹–Š‡”‘ˆ–Š‡ƒ„‘˜‡ǡ†‡’‡†‹‰‘–Š‡‡‰‹‡
…ƒ’ƒ…‹–›Ǥȋ–Š‹•…ƒ•‡”‡…‘˜‡”›‹•‘–†‡†—…–‹„Ž‡ȌǤ

Motor Car owned/ hired by employer & expenses met by Employer

š…Ž—•‹˜‡Ž›ˆ‘”‘ˆϔ‹…‹ƒŽ Exclusively for private purpose ƒ”–Ž›‘ˆϔ‹…‹ƒŽƬ’ƒ”–Ž›’”‹˜ƒ–‡
purpose
Nil —–‘–ƒŽ‘ˆǣ ƒ”‡‰‹‡…ƒ’ƒ…‹–›—’–‘ͳǤ͸‹–”‡•Ǥ
ȋ”‘˜‹†‡†•’‡…‹ϔ‹‡† ƒǤ …–—ƒŽ ”—‹‰Ƭƒ‹–‡ƒ…‡‡š’‡•‡• ͳǡͺͲͲ’Ǥ+ͻͲͲ’ˆ‘”…Šƒ—ˆˆ‡”ȋˆƒ›Ȍ
documents are „Ǥ …–—ƒŽ ”‡—‡”ƒ–‹‘–‘…Šƒ—ˆˆ‡—” ƒ”‡‰‹‡…ƒ’ƒ…‹–›εͳǤ͸‹–”‡•Ǥ
maintained by …Ǥ ͳͲΨ ‘ˆ …‘•– ‘ˆ …ƒ” ȋ‹ˆ ‘™‡†Ȍ ‘” Š‹”‡ ʹǡͶͲͲ’ǤΪͻͲͲ’Ǥˆ‘”…Šƒ—ˆˆ‡”ȋˆƒ›Ȍ
‡’Ž‘›‡”Ȍ …Šƒ”‰‡•ȋ‹ˆŠ‹”‡†Ȍ
Less: Amount recovered from employee

Motor Car owned/ hired by employer & expenses met by Employee

š…Ž—•‹˜‡Ž›ˆ‘”‘ˆϔ‹…‹ƒŽ Exclusively for private purpose ƒ”–Ž›‘ˆϔ‹…‹ƒŽƬ’ƒ”–Ž›’”‹˜ƒ–‡
purpose
—–‘–ƒŽ‘ˆǣ ƒ”‡‰‹‡…ƒ’ƒ…‹–›—’–‘ͳǤ͸‹–”‡•Ǥ
ƒȌ…–—ƒŽ”—‹‰Ƭƒ‹–‡ƒ…‡‡š’‡•‡• ͸ͲͲ’ΪͻͲͲ’ˆ‘”…Šƒ—ˆˆ‡”Ǥȋˆƒ›Ȍ
Exempt „Ȍ…–—ƒŽ ”‡—‡”ƒ–‹‘–‘…Šƒ—ˆˆ‡—” ƒ”‡‰‹‡…ƒ’ƒ…‹–›εͳǤ͸‹–”‡•Ǥ
ȋˆ„‘”‡„›‡’Ž‘›‡”Ȍ ͻͲͲ’ΪͻͲͲ’ˆ‘”…Šƒ—ˆˆ‡—”ȋˆƒ›Ȍ

Motor Car owned by employee & expenses met by Employer

š…Ž—•‹˜‡Ž›ˆ‘”‘ˆϔ‹…‹ƒŽ Exclusively for private purpose ƒ”–Ž›‘ˆϔ‹…‹ƒŽƬ’ƒ”–Ž›’”‹˜ƒ–‡
purpose
Nil ‘—–’ƒ‹†„›‡’Ž‘›‡” …–—ƒŽš’‡•‡•‘ˆ‡’Ž‘›‡”
ȋ”‘˜‹†‡†•’‡…‹ϔ‹‡† Less :
documents ͳǡͺͲͲ’ΪͻͲͲ’(car engine capacity
maintained by —’–‘ͳǤ͸‹–”‡•Ȍ
‡’Ž‘›‡”Ȍ 
ʹǡͶͲͲ’ΪͻͲͲ’(car engine capacity
εͳǤ͸‹–”‡•Ȍ
Higher deductionˆ‘”‘ˆϔ‹…‹ƒŽ‡š’‡•‡•‹ˆ
•’‡…‹ϔ‹‡††‘…—‡–•ƒ”‡ƒ‹–ƒ‹‡†
136 Lesson 4 Ȉ EP-TL

Other Conveyance owned by employee & expenses met by Employer

š…Ž—•‹˜‡Ž›ˆ‘”‘ˆϔ‹…‹ƒŽ Exclusively for private purpose ƒ”–Ž›‘ˆϔ‹…‹ƒŽƬ’ƒ”–Ž›’”‹˜ƒ–‡
purpose
‹Ž š’‡†‹–—”‡’ƒ‹†„›‡’Ž‘›‡” …–—ƒŽš’‡•‡•‘ˆ‡’Ž‘›‡”
ȋ”‘˜‹†‡†•’‡…‹ϔ‹‡† ‡”“—‹•‹–‡–ƒšƒ„Ž‡ˆ‘”ƒŽŽ‡’Ž‘›‡‡•
Less :ͻͲͲ’
documents are
maintained by ‹‰Š‡” †‡†—…–‹‘ ˆ‘” ‘ˆϔ‹…‹ƒŽ ‡š’‡•‡•  ‹ˆ
‡’Ž‘›‡”Ȍ •’‡…‹ϔ‹‡††‘…—‡–•ƒ”‡ƒ‹–ƒ‹‡†

Illustration 5:
–†Ǥ’”‘˜‹†‡†–Š‡ˆ‘ŽŽ‘™‹‰’‡”“—‹•‹–‡•–‘‹–•‡’Ž‘›‡‡”‹‹˜ƒ•ƒǡˆ‘”–Š‡ ʹͲʹͳǦʹʹǤ
ͳȌ ‡ƒ•‡†ƒ……‘‘†ƒ–‹‘’”‘˜‹†‡†–‘–Š‡‡’Ž‘›‡‡Ǥ‹”‡Šƒ”‰‡•ͷͲͲͲͲ’Ǣ”‡…‘˜‡”‡†ˆ”‘‡’Ž‘›‡‡
ʹͲͲͲͲ’
ʹȌ ……‘‘†ƒ–‹‘™ƒ•ˆ—”‹•Š‡†ƒ†–Š‡ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡•’ƒ‹†„›–Š‡’Ž‘›‡”™ƒ•ͶͲͷͲȀǦ’
͵Ȍ ‡™ƒ•ƒŽ•‘’”‘˜‹†‡†ƒ›—†ƒ‹ƒ–”‘™‹–ŠŠƒ—ˆˆ‡”ƒ†ƒ
‹ˆ–‘—…Š‡”™‘”–ŠͻͲͲͲȀǦ
ƒŽƒ”› ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ˜ƒŽ—ƒ–‹‘ ‘ˆ ’‡”“—‹•‹–‡• ‹•  ʹͷǡͲͲǡͲͲͲȀǦǤ ‘’—–‡ –Š‡ –ƒšƒ„Ž‡ ˜ƒŽ—‡ ‘ˆ –Š‡
’‡”“—‹•‹–‡•ƒ••—‹‰ƒ••‡••Šƒ†‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ
Solution :

Accommodation on lease
ƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡•‘ˆƒŽ—ƒ–‹‘‘ˆ ʹͷǡͲͲǡͲͲͲ
‡”“—‹•‹–‡•
…–—ƒŽ‡ƒ•‡Šƒ”‰‡• ͸ǡͲͲǡͲͲͲ
ͳͷΨ‘ˆ–Š‡ƒ„‘˜‡ȋƒ’Ȍ ͵ǡ͹ͷǡͲͲͲ
‡…‡ǡ
”‘••ƒšƒ„Ž‡ƒŽ—‡‘ˆ–Š‡ ͵ǡ͹ͷǡͲͲͲ
‡”“—‹•‹–‡
‡••ǣ‘—–”‡…‘˜‡”‡†ˆ”‘–Š‡ ʹǡͶͲǡͲͲͲ
‡’Ž‘›‡‡
ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ—ˆ—”‹•Š‡†Ž‡ƒ•‡† ͳǡ͵ͷǡͲͲͲ
accommodation
††ǣ…–—ƒŽŠ‹”‡…Šƒ”‰‡•‘ˆˆ—”‹–—”‡ Ͷͺǡ͸ͲͲ
Š‹”‡†
Taxable value of Furnished ͳǡͺ͵ǡ͸ͲͲ
Accommodation
ƒ”—•‡†’ƒ”–Ž›ˆ‘”ˆϔ‹…‹ƒŽƬ’ƒ”–Ž›ˆ‘”
Personal
‰‹‡ƒ’ƒ…‹–›‹•™‹–Š‹ͳǤ͸ȋƒ–”‘Ȍ
ƒšƒ„Ž‡ƒŽ—‡‘ˆ‡”“—‹•‹–‡̷ͳͺͲͲ’ ʹͳǡ͸ͲͲ
Šƒ—ˆˆ‡”̷ͻͲͲ’ ͳͲǡͺͲͲ
ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ‘–‘”ƒ”’”‘˜‹†‡† ͵ʹǡͶͲͲ

‹ˆ–‘—…Š‡” ͻǡͲͲͲ
‘–ƒŽƒŽ—‡‘ˆ‡”“—‹•‹–‡• 2,25,000
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” ͳ͵͹

Note:
ͷǤ ‡ˆ‡”–‘–Š‡˜ƒŽ—ƒ–‹‘”—Ž‡•ˆ‘”’‡”“—‹•‹–‡•Ȃ–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡ˆ‘”ƒŠ‹”‡†ƒ……‘‘†ƒ–‹‘‹•–Š‡
ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡•‹…—””‡†„›–Š‡‡’Ž‘›‡”•—„Œ‡…––‘ƒšǤ͸ͻά‘ˆ•ƒŽƒ”›”‡†—…‡†„›–Š‡ƒ‘—–”‡…‘˜‡”‡†
ˆ”‘–Š‡‡’Ž‘›‡‡Ǥ
ʹǤ ‹…‡–Š‡ƒ……‘‘†ƒ–‹‘‹•ˆ—”‹•Š‡†ǡ–Š‡ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡•ƒ”‡ƒ††‡†–‘–Š‡ƒ„‘˜‡Ǥ
͵Ǥ
‹ˆ–‘—…Š‡”•ƒ”‡–ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡•–‘‘‹ˆ”‡…‡‹˜‡†„›–Š‡‡’Ž‘›‡”ƒ†‘”‡–ŠƒͷͲͲͲȀǦǤ

ƒšǦˆ”‡‡’‡”“—‹•‹–‡•ȋ‹ƒŽŽ…ƒ•‡•Ȍ
Š‡˜ƒŽ—‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰’‡”“—‹•‹–‡•‹•‘––‘„‡‹…Ž—†‡†‹–Š‡•ƒŽƒ”›‹…‘‡‘ˆƒ‡’Ž‘›‡‡ǣ
1. Medical Facilities
ƒǤ Š‡˜ƒŽ—‡‘ˆƒ›‡†‹…ƒŽˆƒ…‹Ž‹–›’”‘˜‹†‡†–‘ƒ‡’Ž‘›‡‡‘”Š‹•ˆƒ‹Ž›‡„‡”‹ƒ›Š‘•’‹–ƒŽ•ǡ…Ž‹‹…•ǡ
‡–…Ǥƒ‹–ƒ‹‡†„›–Š‡‡’Ž‘›‡”Ǥ
„Ǥ ‡‹„—”•‡‡–‘ˆ‡š’‡†‹–—”‡ƒ…–—ƒŽŽ›‹…—””‡†„›–Š‡‡’Ž‘›‡‡‘‡†‹…ƒŽ–”‡ƒ–‡–ˆ‘”•‡Žˆ‘”ˆ‘”
Š‹•ˆƒ‹Ž›‡„‡”•‹ƒ›Š‘•’‹–ƒŽ•ǡ†‹•’‡•ƒ”‹‡•‡–…Ǥƒ‹–ƒ‹‡†„›–Š‡
‘˜‡”‡–‘”Ž‘…ƒŽƒ—–Š‘”‹–›
‘” ‹ ƒ Š‘•’‹–ƒŽ ƒ’’”‘˜‡† —†‡” –Š‡ ‡–”ƒŽ ‡ƒŽ–Š …Š‡‡ ‘” ƒ› •‹‹Žƒ” •…Š‡‡ ‘ˆ –Š‡ •–ƒ–‡

‘˜‡”‡– ‘” ‹ ƒ Š‘•’‹–ƒŽǡ ƒ’’”‘˜‡† „› –Š‡ …Š‹‡ˆ …‘‹••‹‘‡” Šƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ ’”‡•…”‹„‡†
‰—‹†‡Ž‹‡•ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡†‹…ƒŽ–”‡ƒ–‡–‘ˆ–Š‡’”‡•…”‹„‡††‹•‡ƒ•‡•‘”ƒ‹Ž‡–•Ǥ
…Ǥ
”‘—’‡†‹…ƒŽ‹•—”ƒ…‡‘„–ƒ‹‡†„›–Š‡‡’Ž‘›‡”ˆ‘”Š‹•‡’Ž‘›‡‡•ȋ‹…Ž—†‹‰ˆƒ‹Ž›‡„‡”•‘ˆ
–Š‡ ‡’Ž‘›‡‡•Ȍ ‘” ƒŽŽ ‡†‹…ƒŽ ‹•—”ƒ…‡ ’ƒ›‡–• ƒ†‡ †‹”‡…–Ž› ‘” ”‡‹„—”•‡‡– ‘ˆ ‹•—”ƒ…‡
’”‡‹—–‘•—…Š‡’Ž‘›‡‡•™Š‘–ƒ‡•—…Š‹•—”ƒ…‡Ǥ
†Ǥ ›‡š’‡†‹–—”‡‹…—””‡†‘”’ƒ‹†„›–Š‡‡’Ž‘›‡”‘–Š‡‡†‹…ƒŽ–”‡ƒ–‡–‘ˆ–Š‡‡’Ž‘›‡‡‘”ƒ›
ˆƒ‹Ž› ‡„‡” ‘ˆ –Š‡ ‡’Ž‘›‡‡ ‘—–•‹†‡ †‹ƒǡ –Š‡ –”ƒ˜‡Ž ƒ† •–ƒ› ƒ„”‘ƒ† ‘ˆ •—…Š ‡’Ž‘›‡‡ ‘” ƒ›
ˆƒ‹Ž›‡„‡”‘ˆ•—…Š‡’Ž‘›‡‡‘”ƒ›–”ƒ˜‡Ž‘”•–ƒ›ƒ„”‘ƒ†‘ˆ‘‡ƒ––‡†ƒ–™Š‘ƒ……‘’ƒ‹‡•–Š‡
’ƒ–‹‡–‹…‘‡…–‹‘™‹–Š•—…Š–”‡ƒ–‡–™‹ŽŽ‘–„‡‹…Ž—†‡†‹’‡”“—‹•‹–‡•‘ˆ–Š‡‡’Ž‘›‡‡Ǥ‘™‡˜‡”ǡ
–Š‡–”ƒ˜‡Ž‡š’‡†‹–—”‡•ŠƒŽŽ„‡‡š…Ž—†‡†ˆ”‘–Š‡’‡”“—‹•‹–‡•‘Ž›™Š‡–Š‡‡’Ž‘›‡‡ǯ•‰”‘••–‘–ƒŽ
‹…‘‡ ƒ• …‘’—–‡† „‡ˆ‘”‡ ‹…Ž—†‹‰ –Š‡ •ƒ‹† ‡š’‡†‹–—”‡ †‘‡• ‘– ‡š…‡‡† –™‘ ŽƒŠ ”—’‡‡• ƒ†
ˆ—”–Š‡”–‘•—…Š…‘†‹–‹‘•ƒ†Ž‹‹–•ƒ•–Š‡‘ƒ”†ƒ›’”‡•…”‹„‡Šƒ˜‹‰”‡‰ƒ”†–‘‰—‹†‡Ž‹‡•ǡ‹ˆƒ›ǡ
‹••—‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒǤ

 

( to Employees / Family Members)
In Government Hospital or
‘•’‹–ƒŽ local authority hospital‘” Premium paid for Other case
maintained Government approved hospital‘” Health Insurance
by employer under approved
Hospital approved by CCIT scheme
ȋ ‘”prescribed disease‘Ž›Ȍ
—ŽŽ›š‡’– —ŽŽ›š‡’–  —ŽŽ›š‡’– —ŽŽ›–ƒšƒ„Ž‡

Medical Expenses ‘ˆ
Patient
ƒšˆ”‡‡–‘–Š‡‡š–‡–
’‡”‹––‡†„›RBI
 
( to Employees / Family Members)
Stay Expenses Travel Expenses
‘ˆPatientƒ†One attendant ‘ˆPatient ™‹–ŠOne attendant
ȋ–‘–ƒŽ–™‘’‡”•‘•Ȍ ȋ–‘–ƒŽ–™‘’‡”•‘•Ȍ
ƒšˆ”‡‡–‘–Š‡‡š–‡– ƒšˆ”‡‡
’‡”‹––‡†„›RBI ‹ˆ‡’Ž‘›‡‡ǯ•GTI —’–‘•ǤʹǡͲͲǡͲͲͲȀǦ
(before including such travel expenses)
 138 Lesson 4 Ȉ EP-TL

1. Refreshment: Š‡˜ƒŽ—‡‘ˆ”‡ˆ”‡•Š‡–’”‘˜‹†‡†„›–Š‡‡’Ž‘›‡”†—”‹‰‘ˆϐ‹…‡Š‘—”•ƒ†‹‘ˆϐ‹…‡’”‡‹•‡•
‹•ˆ—ŽŽ›‡š‡’–Ǥȏ‘–ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”ƒ••‡••‡‡‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷȐǤ
2. Subsidized lunch or dinner ’”‘˜‹†‡†„›‡’Ž‘›‡”‹•‡š‡’–Ǥ
3. Recreational facilities: Š‡˜ƒŽ—‡‘ˆ”‡…”‡ƒ–‹‘ƒŽˆƒ…‹Ž‹–‹‡•’”‘˜‹†‡†‹•‡š‡’–Ǥ‘™‡˜‡”ǡ–Š‡ˆƒ…‹Ž‹–›•Š‘—Ž†
‘–„‡”‡•–”‹…–‡†–‘ƒ•‡Ž‡…–‡†ˆ‡™Ǥ
4. Telephone facility ’”‘˜‹†‡† ƒ– –Š‡ ”‡•‹†‡…‡ ‘ˆ –Š‡ ‡’Ž‘›‡‡ ‹• ‡š‡’– –‘ –Š‡ ‡š–‡– ‘ˆ –Š‡ ƒ‘—– ‘ˆ
–‡Ž‡’Š‘‡„‹ŽŽ•’ƒ‹†„›–Š‡‡’Ž‘›‡”™Š‡‹–‹•—•‡†ˆ‘”‘ˆϐ‹…‹ƒŽƒ†’‡”•‘ƒŽ’—”’‘•‡•‘ˆ–Š‡‡’Ž‘›‡‡Ǥ
5. Transport ’”‘˜‹†‡†„›–Š‡‡’Ž‘›‡”–‘–Š‡‡’Ž‘›‡‡•ˆ‘”–Š‡Œ‘—”‡›„‡–™‡‡‘ˆϐ‹…‡ƒ†”‡•‹†‡…‡ƒ†„ƒ…
ƒ–ˆ”‡‡‘ˆ…Šƒ”‰‡‘”ƒ–…‘…‡••‹‘ƒŽ”ƒ–‡Ǥ
6. Personal accident insuranceǡ ‹Ǥ‡Ǥǡ ’ƒ›‡– ‘ˆ ƒ—ƒŽ ’”‡‹— „› ‡’Ž‘›‡” ‘ ’‡”•‘ƒŽ ƒ……‹†‡– ’‘Ž‹…›
‡ˆˆ‡…–‡†„›Š‹–‘Š‹•‡’Ž‘›‡‡Ǥ
7. Refresher CourseǣŠ‡”‡–Š‡‡’Ž‘›‡‡ƒ––‡†•ƒ›”‡ˆ”‡•Š‡”…‘—”•‡‹ƒƒ‰‡‡–ƒ†–Š‡ˆ‡‡•ƒ”‡’ƒ‹†„›
–Š‡‡’Ž‘›‡”ǡ–Š‡ƒ‘—–•’‡–„›‡’Ž‘›‡”ˆ‘”–Š‡’—”’‘•‡Ǥ
8. Free RationsǣŠ‡˜ƒŽ—‡‘ˆˆ”‡‡”ƒ–‹‘•‰‹˜‡–‘–Š‡ƒ”‡†ˆ‘”…‡•’‡”•‘‡ŽǤ
9. Computer/laptops ’”‘˜‹†‡†‘Ž›ˆ‘”—•‡ǡ‘™‡”•Š‹’‹•”‡–ƒ‹‡†„›–Š‡‡’Ž‘›‡”Ǥ
10. Rent free houses/conveyance –‘‹‰Š‘—”–Ƭ—’”‡‡‘—”– —†‰‡•Ǥ
11. Employers’ Contribution –‘
”‘—’•—”ƒ…‡…Š‡‡•ǡ–‘”‡…‘‰‹•‡†”‘˜‹†‡– —†•ȏ—„Œ‡…––‘‡†‡–
„› ‹ƒ…‡…–ǡʹͲʹͲȐǤ
  Ǧ          
PROVIDENT FUND
‘”’—”’‘•‡•‘ˆ…‘‡Ǧ–ƒšǡ’”‘˜‹†‡–ˆ—†•ƒ”‡‰”‘—’‡†—†‡”–Š”‡‡Š‡ƒ†•ǣ
A. Statutory provident fund
Meaning: ŽŽ’”‘˜‹†‡–ˆ—†•™Š‹…Šƒ”‡•‡–—’—†‡”–Š‡”‘˜‹†‡– —†•
…–ǡ ͳͻʹͷ ƒ”‡ …ƒŽŽ‡† –ƒ–—–‘”› ”‘˜‹†‡– —†•Ǥ ”‘˜‹†‡– ˆ—†• ‘ˆ –ƒ–—–‘”›
‹•–‹–—–‹‘• •—…Š ƒ• ‹˜‡”•‹–‹‡•ǡ ‘ŽŽ‡‰‡• ‘” ‘–Š‡” †—…ƒ–‹‘ƒŽ ”‘˜‹†‡–
•–‹–—–‹‘•ǡ ‡•‡”˜‡ ƒ ‘ˆ †‹ƒǡ –ƒ–‡ ƒ ‘ˆ †‹ƒǡ –Š‡ ‡–”ƒŽ Fund

‘˜‡”‡– ƒ† –ƒ–‡
‘˜‡”‡– ™‘—Ž† …‘•–‹–—–‡ –ƒ–—–‘”›
”‘˜‹†‡– —†•Ǥ ‡…‘‰‹•‡†
Treatment: …ƒ•‡‘ˆ–ƒ–—–‘”›”‘˜‹†‡– —†ǡ–Š‡‡–‹”‡ƒ‘—–‘ˆ ”‘˜‹†‡–
”‡…‘‰‹•‡† Fund
‡’Ž‘›‡”ǯ• …‘–”‹„—–‹‘ ™‹–Š‘—– ƒ› Ž‹‹– ‘” ”‡•–”‹…–‹‘ ™Šƒ–•‘‡˜‡” ”‘˜‹†‡–
ƒ†–Š‡‹–‡”‡•––Š‡”‡‘”‡…‡‹˜‡†„›–Š‡‡’Ž‘›‡‡•ŠƒŽŽ‘–„‡‹…Ž—†‹„Ž‡ Fund
‹ –Š‡ –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ ‡’Ž‘›‡‡ „‘–Š ƒ– –Š‡ –‹‡ ™Š‡ –Š‡
…‘–”‹„—–‹‘‹•ƒ†‡ƒ†ƒ––Š‡–‹‡™Š‡–Š‡‘‡›‹•”‡…‡‹˜‡†„›‘”
‘„‡ŠƒŽˆ‘ˆ–Š‡‡’Ž‘›‡‡‘Š‹•”‡–‹”‡‡–ǡ†‡ƒ–Š‘”‘–Š‡”™‹•‡ǤŠ‹•‡š‡’–‹‘‹••’‡…‹ϐ‹…ƒŽŽ›…‘ˆ‡””‡†„›
—„Ǧ•‡…–‹‘ȋͳͳȌ‘ˆ‡…–‹‘ͳͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǤŠ‡‡’Ž‘›‡‡…ƒ…‘–”‹„—–‡–‘–Š‹•ˆ—†‘—–‘ˆŠ‹•
•ƒŽƒ”›ƒ•—…Šƒ•Š‡Ž‹‡•Ǥ
B. Recognised provident fund
Meaning: ŽŽ”‘˜‹†‡– —†•”‡…‘‰‹•‡†„›–Š‡‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš—†‡”—Ž‡͵‘ˆƒ”–Ǯǯ‘ˆ–Š‡
‘—”–Š…Š‡†—Ž‡–‘–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳƒ†ƒŽ•‘”‘˜‹†‡– —†•‡•–ƒ„Ž‹•Š‡†—†‡”ƒ•…Š‡‡ˆ”ƒ‡†
—†‡”–Š‡’Ž‘›‡‡•”‘˜‹†‡– —†•…–ǡͳͻͷʹƒ”‡‘™—†‡”–Š‡…‘‡Ǧ–ƒš…–ƒ•‡…‘‰‹•‡†”‘˜‹†‡–
—†•Ǥ ‘” –Š‡ ’—”’‘•‡• ‘ˆ „‡‹‰ –”‡ƒ–‡† ƒ• ‡…‘‰‹•‡† ”‘˜‹†‡– —†ǡ –Š‡ —† ‹ “—‡•–‹‘ —•– „‡
”‡…‘‰‹•‡† „› –Š‡ ‘‹••‹‘‡” ‘ˆ …‘‡Ǧ–ƒš ƒ– –Š‡ –‹‡ ‘ˆ ‹–• •‡––‹‰ —’ ƒ† —•– …‘–‹—‡ –‘ „‡ •‘
”‡…‘‰‹•‡† ‡˜‡ •—„•‡“—‡–Ž›Ǥ Š‡ ‘‡– –Š‡ ”‡…‘‰‹–‹‘ ‹• ™‹–Š†”ƒ™ „› –Š‡ ‘‹••‹‘‡”ǡ –Š‡ —†
…‡ƒ•‡•–‘„‡ƒ‡…‘‰‹•‡†”‘˜‹†‡– —†ǤŠ‡”‘˜‹†‡– —†•‘ˆ˜ƒ”‹‘—•—„Ž‹…‡…–‘”†‡”–ƒ‹‰•ǡ‡‹Ǧ

‘˜‡”‡–„‘†‹‡•ƒ†‘–Š‡”‹•–‹–—–‹‘•ƒ†‘”‰ƒ‹•ƒ–‹‘•‹…Ž—†‹‰…‘’ƒ‹‡•™Š‹…Šƒ”‡”‡…‘‰‹•‡†„›
–Š‡‘‹••‹‘‡”ˆ‘”‹…‘‡Ǧ–ƒš’—”’‘•‡•ǡ™‘—Ž†„‡–”‡ƒ–‡†ƒ•‡…‘‰‹•‡†”‘˜‹†‡– —†•Ǥ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 139

Employer Contribution & Interest

Tax Treatment upto 31.03.2020ǣ–Š‡…ƒ•‡‘ˆƒ‡…‘‰‹•‡†”‘˜‹†‡– —†ǡ–Š‡‡’Ž‘›‡”ǯ•…‘–”‹„—–‹‘
–‘–Š‡”‘˜‹†‡– —†‹•‘––”‡ƒ–‡†ƒ•–Š‡‡’Ž‘›‡‡ǯ•‹…‘‡•‘Ž‘‰ƒ•–Š‡…‘–”‹„—–‹‘„›–Š‡‡’Ž‘›‡”
†‘‡•‘–‡š…‡‡†ͳʹΨ‘ˆ–Š‡•ƒŽƒ”›‘ˆ–Š‡‡’Ž‘›‡‡Ǥ
 —–‹ˆ–Š‡…‘–”‹„—–‹‘‘ˆ–Š‡‡’Ž‘›‡”‡š…‡‡†•ͳʹΨ‘ˆ–Š‡‡’Ž‘›‡‡ǯ••ƒŽƒ”›ǡ–Š‡‡š…‡••‘ˆ–Š‡…‘–”‹„—–‹‘
‘˜‡”ͳʹΨ‘ˆ–Š‡•ƒŽƒ”›‘ˆ–Š‡‡’Ž‘›‡‡‹•–‘„‡–”‡ƒ–‡†ƒ•’ƒ”–‘ˆ–Š‡–ƒšƒ„Ž‡‹…‘‡ˆ”‘•ƒŽƒ”‹‡•‹–Š‡
Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡‹”‡•’‡…–‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡…‘–”‹„—–‹‘•™‡”‡ƒ†‡„›–Š‡‡’Ž‘›‡”Ǥ
 •”‡‰ƒ”†•‹–‡”‡•–‘–Š‡…‘–”‹„—–‹‘•–‘–Š‡”‘˜‹†‡– —†ǡ‘Ž›ƒƒ‘—–‡š…‡‡†‹‰ƒ•—…ƒŽ…—Žƒ–‡†ƒ–
ͳʹΨ’‡”ƒ—‘–Š‡„ƒŽƒ…‡•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ–Š‡‡’Ž‘›‡‡™‘—Ž†„‡–”‡ƒ–‡†ƒ•’ƒ”–‘ˆ–Š‡–ƒšƒ„Ž‡
‹…‘‡‘ˆ–Š‡‡’Ž‘›‡‡Ǥ‘–Š‡”™‘”†•ǡ•‘Ž‘‰ƒ•–Š‡ƒ‘—–‘ˆ‹–‡”‡•–†‘‡•‘–‡š…‡‡†–Š‹•Ž‹‹–ǡ–Š‡
‹–‡”‡•–†‘‡•‘–„‡…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡Ǥ
Tax Treatment w.e.f. 01.04.2020 [Amendment vide Finance Act, 2020]ǣ’ƒ”–ˆ”‘–Š‡Ž‹‹–‘ˆͳʹΨˆ‘”
‡’Ž‘›‡”…‘–”‹„—–‹‘ƒ†ͻǤͷΨ’ǤƒǤˆ‘”–‡”‡•–ǡ–Š‡”‡™ƒ•‘‘‡–ƒ”›Ž‹‹–ƒ„‘˜‡™Š‹…Š•—…Šƒ‘—–™ƒ•
–ƒšƒ„Ž‡Ǥ‘™–Š‡•‡–™‘Šƒ˜‡„‡‡…‘„‹‡†™‹–Š’Ž‘›‡”…‘–”‹„—–‹‘–‘’’”‘˜‡†—’‡”ƒ—ƒ–‹‘ˆ—†
ƒ†ƒŽ‘‰™‹–Šƒ—ƒŽ‹–‡”‡•––Š‡”‡‘™‹–Š‹…‡‹Ž‹‰‘ˆ•Ǥ͹ǡͷͲǡͲͲͲǤˆ–‘–ƒŽ‡š…‡‡†••Ǥ͹ǡͷͲǡͲͲͲǡ–Š‡
‡š…‡••™‹ŽŽƒŽ•‘„‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”›Ǥ
ͳǤ ‘–ƒŽ‘ˆˆ‘ŽŽ‘™‹‰‹‡š…‡••‘ˆ͹ǡͷͲǡͲͲͲ†—”‹‰’Ȁ›™‹ŽŽƒŽ•‘„‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”›
ʹǤ ’Ž‘›‡”…‘–”‹„—–‹‘–‘‡…‘‰‹•‡†”‘˜‹†‡– —†
͵Ǥ ’Ž‘›‡”…‘–”‹„—–‹‘–‘’’”‘˜‡†—’‡”ƒ—ƒ–‹‘ —†
ͶǤ ’Ž‘›‡”…‘–”‹„—–‹‘–‘ƒ–‹‘ƒŽ‡•‹‘…Š‡‡
Tax Treatment of Employee Contribution
 Š‡‡’Ž‘›‡‡ǯ•‘™…‘–”‹„—–‹‘“—ƒŽ‹ϐ‹‡•ˆ‘”†‡†—…–‹‘—†‡”‡…–‹‘ͺͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǤȏƒŽƒ”›ˆ‘”
–Š‹•’—”’‘•‡ǡ‹…Ž—†‡•„ƒ•‹…•ƒŽƒ”›Ǣ†‡ƒ”‡••ƒŽŽ‘™ƒ…‡Ȁ’ƒ›ȋ‹ˆ–Š‡–‡”•‘ˆ‡’Ž‘›‡–•‘’”‘˜‹†‡Ȍƒ†
…‘‹••‹‘ȋ‹ˆ„ƒ•‡†‘ƒϐ‹š‡†’‡”…‡–ƒ‰‡‘ˆ–—”‘˜‡”ƒ…Š‹‡˜‡†„›–Š‡‡’Ž‘›‡‡ȌȐǤ

Illustration 6ǣ
”Ǥǡ™‘”‹‰‹–†Ǥǡ†”ƒ™•–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–‘ˆ‡‘Ž—‡–•ˆ”‘–Š‡…‘’ƒ›ǣ

Particulars Amount (in lakhs)

ƒ•‹…ƒ› ͷͲ
‘‹••‹‘ ͳͷ
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘”‡…‘‰‹œ‡†’”‘˜‹†‡–ˆ—† ͳͲ
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘ ͹
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘–Š‡•—’‡”ƒ—ƒ–‹‘ˆ—† ͷ
Total ͺ͹

Solution:
‘—–ȋ‹ŽƒŠ•Ȍ

Particulars Before After

Amendment Amendment
ƒ•‹…ƒ› ͷͲ ͷͲ
‘‹••‹‘ ͳͷ ͳͷ
’Ž‘›‡”ǯ• …‘–”‹„—–‹‘ –‘ ”‡…‘‰‹œ‡† ’”‘˜‹†‡– ˆ—† ȋ‹‡š…‡••‘ˆͳʹΨ Ͷ Ͷ
‘ˆ„ƒ•‹…’ƒ›Ȍȏ•ǤͳͲŽƒŠȋŽ‡••Ȍ•Ǥ͸ŽƒŠȋ•ǤͷͲŽƒŠȗͳʹΨȐȏ‡…–‹‘ͳ͹ȋͳȌȐ
 140 Lesson 4 Ȉ EP-TL

’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘ ͹ ͹
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘–Š‡•—’‡”ƒ—ƒ–‹‘ˆ—†‹‡š…‡•• ͵ǤͷͲ Ǧ
‘ˆ•ǤͳǤͷŽƒŠ•ȏŽ†‡…–‹‘ͳ͹ȋʹȌȋ˜‹‹ȌȐ
‡”“—‹•‹–‡ ƒ”‹•‹‰ ˆ”‘ ’Ž‘›‡”ǯ• …‘–”‹„—–‹‘ –‘ –Š‡ •—’‡”ƒ—ƒ–‹‘ Ǧ ͳͶǤͷͲ
ˆ—†ǡ ƒ†‹‡š…‡••‘ˆ•Ǥ͹ǤͷŽƒŠ• ȏ‡™‡…–‹‘ͳ͹ȋʹȌȋ˜‹‹ȌȐ
…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†DzƒŽƒ”›dz ͹ͻǤͷͲ ͻͲǤͷͲ

C. Unrecognised provident Fund

Meaning: Š‡”‘˜‹†‡– —†™Š‹…Š‹•‡‹–Š‡”–ƒ–—–‘”›‘””‡…‘‰‹•‡†„›–Š‡‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš
‘”—„Ž‹…”‘˜‹†‡– —†ǡ™‘—Ž†„‡ƒ”‡…‘‰‹•‡†”‘˜‹†‡– —†ˆ‘”‹…‘‡Ǧ–ƒš’—”’‘•‡•Ǥ
Treatment: –Š‡…ƒ•‡‘ˆƒ”‡…‘‰‹•‡†”‘˜‹†‡– —†ǡ–Š‡‡’Ž‘›‡‡ǯ•‘™…‘–”‹„—–‹‘–‘–Š‡ —†
™‘—Ž†‘–„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘ǤŠ‡‡’Ž‘›‡”ǯ•…‘–”‹„—–‹‘ƒ†–Š‡‹–‡”‡•––Š‡”‡‘™‘—Ž†ǡŠ‘™‡˜‡”ǡ
„‡ ‡š‡’– ˆ”‘ –ƒš ƒ• ƒ† ™Š‡ –Š‡ …‘–”‹„—–‹‘• ƒ”‡ „‡‹‰ ƒ†‡Ǥ —– ™Š‡ –Š‡ ‘‡› ‹ Ž—’ •— ‹•
”‡…‡‹˜‡†„ƒ…„›–Š‡‡’Ž‘›‡‡ǡ–Šƒ–’ƒ”–‘ˆ–Š‡ƒ‘—–ƒ––”‹„—–ƒ„Ž‡–‘–Š‡‡’Ž‘›‡”ǯ•…‘–”‹„—–‹‘™‘—Ž†„‡
–ƒšƒ„Ž‡ƒ•‹…‘‡ˆ”‘•ƒŽƒ”‹‡•ƒ†–Š‡‹–‡”‡•–‘–Š‡‡’Ž‘›‡”ǯ•…‘–”‹„—–‹‘™‘—Ž†ƒŽ•‘„‡–ƒšƒ„Ž‡ƒ•
•ƒŽƒ”›‹…‘‡‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡ǤŠ‡‡’Ž‘›‡‡ǯ•‘™…‘–”‹„—–‹‘•™Š‡”‡…‡‹˜‡†„ƒ…™‘—Ž†
‘–„‡–ƒšƒ„Ž‡„‡…ƒ—•‡–Š‡›†‘‘–…‘–ƒ‹ƒ‡Ž‡‡–‘ˆ‹…‘‡Ǥ‘™‡˜‡”ǡ–Š‡‹–‡”‡•––Š‡”‡‘™‘—Ž†„‡
…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ƒ†‘–ƒ•‹…‘‡ˆ”‘•ƒŽƒ”‹‡•Ǥ
 ȍͺͻȎ
ƒš‹•…ƒŽ…—Žƒ–‡†‘–‘–ƒŽ‹…‘‡‡ƒ”‡†‘””‡…‡‹˜‡††—”‹‰–Š‡›‡ƒ”Ǥˆƒ›’‘”–‹‘”‡…‡‹˜‡†Ǯ•ƒŽƒ”›‹ƒ””‡ƒ”•‘”‹
ƒ†˜ƒ…‡ǯǡ‘”Šƒ˜‡”‡…‡‹˜‡†ƒˆƒ‹Ž›’‡•‹‘‹ƒ””‡ƒ”•ǡƒ••‡••‡‡‹•ƒŽŽ‘™‡†•‘‡–ƒš”‡Ž‹‡ˆ—†‡”•‡…–‹‘ͺͻȋͳȌ‘ˆ–Š‡
…‘‡ƒš…–ǡͳͻ͸ͳǤ
‡Ž‹‡ˆ—†‡”•‡…–‹‘ͺͻȋͳȌˆ‘”ƒ””‡ƒ”•‘ˆ•ƒŽƒ”›ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
Ȉ ƒŽƒ”›”‡…‡‹˜‡†‹ƒ†˜ƒ…‡‘”ƒ•ƒ””‡ƒ”•
Ȉ
”ƒ–—‹–›
Ȉ ‘’‡•ƒ–‹‘‘‡”‹ƒ–‹‘‘ˆ‡’Ž‘›‡–
Ȉ ‘—–ƒ–‹‘‘ˆ‡•‹‘
Ȉ ƒŽ…—Žƒ–‹‰‡Ž‹‡ˆ—†‡”‡…–‹‘ͺͻȋͳȌ
–‡’•–‘„‡ˆ‘ŽŽ‘™‡†–‘…ƒŽ…—Žƒ–‡”‡Ž‹‡ˆ—†‡”•‡…–‹‘ͺͻȋͳȌ
Step 1: ƒŽ…—Žƒ–‡–Š‡–ƒš’ƒ›ƒ„Ž‡‘Š‹•–‘–ƒŽ‹…‘‡‹…Ž—†‹‰ƒ””‡ƒ”•‘ˆ–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡
•ƒ‡‹•”‡…‡‹˜‡†ǤȋšǣȌ
Step 2: ƒŽ…—Žƒ–‡–Š‡–ƒš’ƒ›ƒ„Ž‡‘Š‹•–‘–ƒŽ‹…‘‡‡š…Ž—†‹‰ƒ””‡ƒ”•ǤȋšǣȌ
Step 3: —„–”ƒ…––Š‡˜ƒŽ—‡‘„–ƒ‹‡†‹•–‡’ͳˆ”‘–Š‡˜ƒŽ—‡‘„–ƒ‹‡†‹•–‡’ʹǤȋ‡ǤǡǦȌƒ†‡‡’–Š‡”‡•—Ž–˜ƒŽ—‡ƒ•Ǥ
Step 4: ƒŽ…—Žƒ–‡–Š‡–ƒš’ƒ›ƒ„Ž‡‘–Š‡–‘–ƒŽ‹…‘‡ȋ‹…Ž—†‹‰ƒ””‡ƒ”•Ȍ‘ˆ–Š‡›‡ƒ”–‘™Š‹…Š–Š‡ƒ””‡ƒ”•ƒ”‡”‡Žƒ–‡†Ǥ
ȋšǣDzdzȌ
Step 5: ƒŽ…—Žƒ–‡–ƒš’ƒ›ƒ„Ž‡‘–Š‡–‘–ƒŽ‹…‘‡ȋ‡š…Ž—†‹‰ƒ””‡ƒ”•Ȍ‘ˆ–Š‡›‡ƒ”–‘™Š‹…Š–Š‡ƒ””‡ƒ”•ƒ”‡”‡Žƒ–‡†Ǥ
ȋšǣDzdzȌ
Step 6: —„–”ƒ…––Š‡˜ƒŽ—‡‘„–ƒ‹‡†‹•–‡’ͷˆ”‘–Š‡˜ƒŽ—‡‘„–ƒ‹‡†‹•–‡’Ͷȋ‹Ǥ‡ǤǡȂȌǤȋšǣDzdzȌǤ
š…‡••‘ˆ–ƒš…‘’—–‡†ƒ–•–‡’͵‘˜‡”–ƒš…‘’—–‡†ƒ–•–‡’͹‹•–Š‡ƒ‘—–‘ˆ”‡Ž‹‡ˆƒŽŽ‘™ƒ„Ž‡—†‡”•‡…–‹‘ͺͻǤˆ
–ƒš…‘’—–‡†ƒ–•–‡’͵‹•Ž‡••–Šƒ–ƒš…‘’—–‡†ƒ–•–‡’͹–Š‡–ƒš’ƒ›‡”™‹ŽŽ‘–„‡‡Ž‹‰‹„Ž‡ˆ‘”ƒ›”‡Ž‹‡ˆǤ
 Lesson 4 Ȉ Part I - Income under the Head “Salaries” 141

Tax Liability in the PY in which adv / arrears are received

ƒȌ…ŽǤƒ†˜Ȁƒ””‡ƒ”• 
„Ȍš…ŽǤƒ†˜Ȁƒ””‡ƒ”• 
‹ˆˆ‡”‡–‹ƒŽ Ǧ
Tax Liability of the PY to which such addl salary relates
ƒȌ…ŽǤƒ†˜Ȁƒ””‡ƒ”• 
„Ȍš…ŽǤƒ†˜Ȁƒ””‡ƒ”• D
‹ˆˆ‡”‡–‹ƒŽ Ǧ
Relief u/s 89 (A-B)-(C-D)

Š‡ ‹ƒ…‡ȋ‘ǤʹȌ…–ǡʹͲͳͻŠƒ•ƒ‡†‡†•‡…–‹‘•ͳͶͲȋ•‡Žˆƒ••‡••‡–ȌǡͳͶ͵ȋ”‡‰—Žƒ”ƒ••‡••‡–Ȍǡ•‡…–‹‘
ʹ͵Ͷǡʹ͵Ͷǡʹ͵Ͷȋ‹–‡”‡•–•‘Žƒ–‡’ƒ›‡–‘ˆ–ƒšȌ•‘ƒ•–‘’”‘˜‹†‡–Šƒ–…‘’—–ƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›•ŠƒŽŽ„‡ƒ†‡
ƒˆ–‡”ƒŽŽ‘™‹‰”‡Ž‹‡ˆ—†‡”•‡…–‹‘ͺͻǤ
 
Standard Deduction [Section 16(ia)]
–ƒ†ƒ”††‡†—…–‹‘‘ˆ•ǤͷͲǡͲͲͲȋϐ‹ˆ–›–Š‘—•ƒ†Ȍ‘”–Š‡ƒ‘—–‘ˆ–Š‡•ƒŽƒ”›ǡ™Š‹…Š‡˜‡”‹•Ž‡••™Ǥ‡ǤˆǤFinance Act,
2019 ™Ǥ‡ǤˆǤ••‡••‡–›‡ƒ”ʹͲʹͲǦʹͳȏ…Žƒ—•‡ȋ‹ƒȌ–‘•‡…–‹‘ͳ͸ȐǤ
Entertainment Allowance [Section 16(ii)]
Ȉ —ŽŽ›–ƒšƒ„Ž‡
Ȉ ‹”•––‘„‡‹…Ž—†‡†‹•ƒŽƒ”›ƒ†–Š‡†‡†—…–‹‘–‘„‡ƒ†‡Ǥ
Ȉ …ƒ•‡‘ˆ
‘˜‡”‡–’Ž‘›‡‡•ǡ–Š‡†‡†—…–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡ǡ™Š‹…Š™‘—Ž†„‡Ž‘™‡”‘ˆǣ
ƒȌ ͳȀͷ–Š‘ˆƒ•‹…ƒŽƒ”›”
„Ȍ ͷͲͲͲȀǦ”
…Ȍ …–—ƒŽ–‡”–ƒ‹‡–ŽŽ‘™ƒ…‡”‡…‡‹˜‡†Ǥ
Profession Tax [Section 16(iii)]
ŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘™Š‡’ƒ‹†„›–Š‡‡’Ž‘›‡‡ȋ”‡…‘˜‡”‡†ˆ”‘•ƒŽƒ”›Ȍ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”
NoteǣŠ‡†‡†—…–‹‘—Ȁ•ͳ͸ȋ‹ƒȌǡͳ͸ȋ‹‹Ȍǡͳ͸ȋ‹‹‹Ȍƒ”‡‘–ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”ƒ••‡••‡•‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡
–ƒš…–ͳͻ͸ͳǤ
 

Particulars (Rs.)
…‘‡ ”‘ƒŽƒ”›
ƒŽƒ”› ššššš
ŽŽ‘™ƒ…‡•”‡…‡‹˜‡†ȋ–ƒšƒ„Ž‡ƒŽŽ‘™ƒ…‡•Ȍ ššššš
ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ ’‡”“—‹•‹–‡ ššššš

”‘••ƒŽƒ”› ššššš
‡••ǣ‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸
”‘ˆ‡••‹‘ƒŽƒš ȋšššššȌ
142 Lesson 4 Ȉ EP-TL

–‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡ ȋšššššȌ
…‘‡ ”‘ƒŽƒ”›ȋͳȌ šššššš

ŽŽ—•–”ƒ–‹‘͹ǣ
‹–‹‹•ƒ‡’Ž‘›‡‡‘ˆ–†Ǥ‡™ƒ•ƒ’’‘‹–‡†‘ͳ•–ƒ”ʹͲʹͳƒ–ƒ•…ƒŽ‡‘ˆͷͲͲͲͲȂͷͲͲͲȂ͹ͲͲͲͲǤ‡‹•
’ƒ‹†ȋ™Š‹…Šˆ‘”•’ƒ”–‘ˆ”‡–‹”‡‡–„‡‡ϐ‹–•Ȍ̷ͳͷΨ‘ˆƒ•‹…ƒ›ƒ†‘—•‡“—‹˜ƒŽ‡––‘ʹ‘–Šǯ••ƒŽƒ”›
ƒ– ‡† ‘ˆ Ǥ ‡ …‘–”‹„—–‡• ͳͺΨ ‘ˆ Š‹• ƒ•‹… Ϊ  –‘ ƒ ”‡…‘‰‹•‡† ’”‘˜‹†‡– ˆ—†ǡ ƒ† –Š‡ …‘–”‹„—–‹‘ ‹•
ƒ–…Š‡†„›–Š‡‡’Ž‘›‡”Ǥ
‡‹•’”‘˜‹†‡†”‡–ˆ”‡‡ƒ……‘‘†ƒ–‹‘ǡŠ‹”‡†„›–Š‡‡’Ž‘›‡”ǡ̷ʹͷͲͲͲ’Ǥ‡‹•ƒŽ•‘’”‘˜‹†‡†–Š‡ˆ‘ŽŽ‘™‹‰
„‡‡ϐ‹–•Ȁƒ‡‹–‹‡•ǣ
ƒȌ ‡†‹…ƒŽ”‡ƒ–‡–‘ˆŠ‹•†‡’‡†ƒ–•’‘—•‡ͶͲͲͲͲ
„Ȍ ‘–ŠŽ›•ƒŽƒ”›–‘Š‘—•‡‡‡’‡”ͶͲͲͲ
…Ȍ ‡Ž‡’Š‘‡ŽŽ‘™ƒ…‡ͳʹͲͲ’
†Ȍ
‹ˆ–‘—…Š‡”‘ˆͶͷͲͲ‘ƒ……‘—–‘ˆŠ‹•ƒ””‹ƒ‰‡ƒ‹˜‡”•ƒ”›
‡Ȍ ‡†‹…ƒŽ•—”ƒ…‡”‡‹—ˆ‘”‹–‹ǡ’ƒ‹†„›Š‹•‡’Ž‘›‡”ͳͷͲͲͲ
ˆȌ ‘–‘”ƒ”‘™‡†ƒ††”‹˜‡„›‹–‹ǡƒ†‡‰‹‡…ƒ’ƒ…‹–›™‹–Š‹ͳǤ͸Ǣ—•‡†’ƒ”–Ž›ˆ‘”‘ˆϐ‹…‹ƒŽƒ†’ƒ”–Ž›
ˆ‘”’‡”•‘ƒŽ’—”’‘•‡•Ǥ—‹‰Ƭƒ‹–‡ƒ…‡‡š’‡•‡•„‘”‡„›–Š‡‡’Ž‘›‡”͵͸ǡ͸ͲͲȀǦ
‰Ȍ —…Š†—”‹‰‘ˆϐ‹…‡Š‘—”•˜ƒŽ—‡†ƒ–ʹʹͲͲȀǦǤ
‡ ™ƒ• ƒŽ•‘ ƒŽŽ‘––‡† ʹͲͲͲ •™‡ƒ– ‡“—‹–› •Šƒ”‡• ‹ ‡’ ʹͲʹͳǤ Š‡ •Šƒ”‡• ™‡”‡ ƒŽŽ‘––‡† ̷  ʹʹ͹ ’‡” •Šƒ”‡
ƒ‰ƒ‹•––Š‡ ‘ˆ͵͹͹’‡”•Šƒ”‡ƒ•‘–Š‡†ƒ–‡‘ˆ‡š‡”…‹•‡‘ˆ–Š‡’–‹‘Ǥ
‘’—–‡–Š‡ƒŽƒ”›Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ
Option 1 ǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
’–‹‘͸ǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:
Option 1 : Assessee has not opted for Section 115BAC

Particulars Amount INR

ƒ•‹… ͸ǡͲͷǡͲͲͲ
 ͻͲǡ͹ͷͲ
‘—• ͳǡͳͲǡͲͲͲ
’Ž‘›‡”•ǯ‘–”‹„—–‹‘–‘ εͳʹΨ Ͷͳǡ͹Ͷͷ
ƒšƒ„Ž‡ŽŽ‘™ƒ…‡•
‡Ž‡’Š‘‡ ͳͶǡͶͲͲ
ƒšƒ„Ž‡‡”“—‹•‹–‡•
‡†‹…ƒŽ‡‹„—”•‡‡–ȋ —ŽŽ›ƒšƒ„Ž‡Ȍ ͶͲǡͲͲͲ
‘—•‡‡‡’‡” ͶͺǡͲͲͲ
‘–‘”ƒ” ͳͷǡͲͲͲ
‡– ”‡‡……‘‘†ƒ–‹‘ ͳǡʹ͵ǡͲʹ͵
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 143

™‡ƒ–“—‹–› ͵ǡͲͲǡͲͲͲ

”‘••ƒŽƒ”› ͳ͵ǡͺ͹ǡͻͳͺ
Lessǣ–ƒ†ƒ”†‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌ ȋͷͲǡͲͲͲȌ
ƒšƒ„Ž‡ƒŽƒ”› ͳ͵ǡ͵͹ǡͻͳͺ
Note:
ͳȌ ’Ž‘›‡”ǯ•‘–”‹„—–‹‘–‘”‘˜‹†‡– —†‹‡š…‡••‘ˆͳʹΨ‹•…Šƒ”‰‡ƒ„Ž‡–‘…‘‡ƒšǤ
ʹȌ ‡– ”‡‡……‘‘†ƒ–‹‘‹•˜ƒŽ—‡†ƒ•—†‡”ǣ
ƒǤ ‹…‡–Š‡ƒ……‘‘†ƒ–‹‘‹•Š‹”‡†ǡ–Š‡ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡••—„Œ‡…––‘ƒ…ƒ’‘ˆͳͷΨ‘ˆDz•ƒŽƒ”›dz‹•
…‘•‹†‡”‡†Ǣ
„Ǥ DzƒŽƒ”›dzˆ‘”–Š‹•’—”’‘•‡‹•ƒ•‹…ΪΪ‘—•ΪƒŽŽƒšƒ„Ž‡ŽŽ‘™ƒ…‡•αͺǡʹͲǡͳͷͲǤ
͵Ȍ ‡†‹…ƒŽ”‡ƒ–‡–‹•…Šƒ”‰‡ƒ„Ž‡–‘ƒšǡƒ•‘‘”‡–ƒšˆ”‡‡’‡”“—‹•‹–‡Ǥ
ͶȌ ‹…‡–Š‡˜ƒŽ—‡‘ˆ–Š‡‰‹ˆ–˜‘—…Š‡”‹•„‡Ž‘™ͷͲͲͲǡ‹–‹•‘––ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡Ǥ
ͷȌ —…Š†—”‹‰‘ˆϐ‹…‡Š‘—”•‹•ƒŽ•‘‘––ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡ƒ••—‹‰…‘•–‘ˆ‡ƒŽ—’–‘•ǤͷͲ’‡”‡ƒŽǤ
͸Ȍ ‡†‹…ƒŽ•—”ƒ…‡”‡‹—’ƒ‹†„›–Š‡‡’Ž‘›‡”‘„‡ŠƒŽˆ‘ˆ‹–‹‹•ƒŽ•‘‘––ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡Ǥ
͹Ȍ Š‡‘–‘”…ƒ”‹•…Šƒ”‰‡ƒ„Ž‡ƒ•—†‡”ǣ
 ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡‡’Ž‘›‡‡Ǣ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡
’ƒ”–Ž›ˆ‘”ˆϐ‹…‹ƒŽƒ†’ƒ”–Ž›ˆ‘”‡”•‘ƒŽ’—”’‘•‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡–Š‡ƒ…–—ƒŽ
‡š’‡†‹–—”‡‹…—””‡†„›–Š‡‡’Ž‘›‡”ƒ•”‡†—…‡†„›–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡†‡–‡”‹‡†„ƒ•‹•
–Š‡‡‰‹‡…ƒ’ƒ…‹–›ǡ‹Ǥ‡Ǥǡ͵͸͸ͲͲȂȋͳͺͲͲȗͳʹȌαͳͷͲͲͲǤ
Option 2 : Assessee has opted for Section 115BAC

Particulars Amount (INR)

ƒ•‹… ͸ǡͲͷǡͲͲͲ
 ͻͲǡ͹ͷͲ
‘—• ͳǡͳͲǡͲͲͲ
’Ž‘›‡”•ǯ‘–”‹„—–‹‘–‘ εͳʹΨ Ͷͳǡ͹Ͷͷ
ƒšƒ„Ž‡ŽŽ‘™ƒ…‡•‡Ž‡’Š‘‡ ͳͶǡͶͲͲ
ƒšƒ„Ž‡‡”“—‹•‹–‡•‡†‹…ƒŽ‡‹„—”•‡‡–ȋ —ŽŽ›ƒšƒ„Ž‡Ȍ ͶͲǡͲͲͲ
‘—•‡‡‡’‡” ͶͺǡͲͲͲ
‘–‘”ƒ” ͳͷǡͲͲͲ
‡– ”‡‡……‘‘†ƒ–‹‘ ͳǡʹ͵ǡͲʹ͵
™‡ƒ–“—‹–› ͵ǡͲͲǡͲͲͲ
‡ƒŽ• ʹǡʹͲͲ

”‘••ƒŽƒ”› ͳ͵ǡͻͲǡͳͳͺ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌ ȋȌ
ƒšƒ„Ž‡ƒŽƒ”› ͳ͵ǡͻͲǡͳͳͺ
144 Lesson 4 Ȉ EP-TL

Note:
Ȉ ’Ž‘›‡”ǯ•‘–”‹„—–‹‘–‘”‘˜‹†‡– —†‹‡š…‡••‘ˆͳʹΨ‹•…Šƒ”‰‡ƒ„Ž‡–‘…‘‡ƒšǤ
Ȉ ‡– ”‡‡……‘‘†ƒ–‹‘‹•˜ƒŽ—‡†ƒ•—†‡”ǣ
ƒȌ ‹…‡–Š‡ƒ……‘‘†ƒ–‹‘‹•Š‹”‡†ǡ–Š‡ƒ…–—ƒŽŠ‹”‡…Šƒ”‰‡••—„Œ‡…––‘ƒ…ƒ’‘ˆͳͷΨ‘ˆDz•ƒŽƒ”›dz‹•
…‘•‹†‡”‡†Ǣ
„Ȍ DzƒŽƒ”›dzˆ‘”–Š‹•’—”’‘•‡‹•ƒ•‹…ΪΪ‘—•ΪƒŽŽƒšƒ„Ž‡ŽŽ‘™ƒ…‡•αͺǡʹͲǡͳͷͲǤ
Ȉ ‡†‹…ƒŽ”‡ƒ–‡–‹•…Šƒ”‰‡ƒ„Ž‡–‘ƒšǡƒ•‘‘”‡–ƒšˆ”‡‡’‡”“—‹•‹–‡Ǥ
Ȉ ‹…‡–Š‡˜ƒŽ—‡‘ˆ–Š‡‰‹ˆ–˜‘—…Š‡”‹•„‡Ž‘™ͷͲͲͲǡ‹–‹•‘––ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡Ǥ
Ȉ —…Š†—”‹‰‘ˆϐ‹…‡Š‘—”•‹•–ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡Ǥ
Ȉ ‡†‹…ƒŽ•—”ƒ…‡”‡‹—’ƒ‹†„›–Š‡‡’Ž‘›‡”‘„‡ŠƒŽˆ‘ˆ‹–‹‹•ƒŽ•‘‘––ƒšƒ„Ž‡ƒ•’‡”“—‹•‹–‡Ǥ
Ȉ Š‡‘–‘”…ƒ”‹•…Šƒ”‰‡ƒ„Ž‡ƒ•—†‡”ǣ
ˆ–Š‡ƒ”‹•‘™‡†ȀŠ‹”‡†„›–Š‡‡’Ž‘›‡‡Ǣ‡š’‡•‡•‡–„›–Š‡‡’Ž‘›‡”Ƭ‹•—•‡†„›–Š‡‡’Ž‘›‡‡
’ƒ”–Ž›ˆ‘”ˆϐ‹…‹ƒŽƒ†’ƒ”–Ž›ˆ‘”‡”•‘ƒŽ’—”’‘•‡•ǡ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡™‘—Ž†„‡–Š‡ƒ…–—ƒŽ
‡š’‡†‹–—”‡ ‹…—””‡† „› –Š‡ ‡’Ž‘›‡” ƒ• ”‡†—…‡† „› –Š‡ –ƒšƒ„Ž‡ ˜ƒŽ—‡ ‘ˆ –Š‡ ’‡”“—‹•‹–‡• †‡–‡”‹‡†
„ƒ•‹•–Š‡‡‰‹‡…ƒ’ƒ…‹–›‹Ǥ‡Ǥ͵͸͸ͲͲǦȋͳͺͲͲͳʹȌαͳͷͲͲͲǤ
Ȉ ‡†—…–‹‘—Ȁ•ͳ͸‹•‘–ƒŽŽ‘™‡†

Illustration 8 :
”Ǥƒ‹•‡’Ž‘›‡†ƒ–‘„ƒ›Ǥ‹•„ƒ•‹…ƒŽƒ”›‹••ǤͷǡͲͲͲ’‡”‘–ŠǤ‡”‡…‡‹˜‡••ǤͷǡͲͲͲ’ǤƒǤƒ•Š‘—•‡”‡–
ƒŽŽ‘™ƒ…‡Ǥ‡–’ƒ‹†„›Š‹‹••ǤͳʹǡͲͲͲ’ǤƒǤ ‹†‘—––Š‡ƒ‘—–‘ˆ–ƒšƒ„Ž‡Š‘—•‡”‡–ƒŽŽ‘™ƒ…‡Ǥ••—‹‰
ƒ••‡••‡‡Šƒ•‘–‘’–‡†—Ȁ•ͳͳͷǤ
Solution:
•’‡”—Ž‡ʹǡ–Š‡Ž‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‡š‡’–ˆ”‘–ƒšǣ
ȋ‹Ȍ –Š‡ƒ…–—ƒŽŠ‘—•‡”‡–ƒŽŽ‘™ƒ…‡Ǣ
ȋ‹‹Ȍ ‡š…‡••‘ˆ”‡–’ƒ‹†‘˜‡”ͳͲΨ‘ˆ•ƒŽƒ”›Ǣ
ȋ‹‹‹Ȍ ™Š‡”‡–Š‡ƒ……‘‘†ƒ–‹‘‹••‹–—ƒ–‡†ƒ–‘„ƒ›ǡ‡ŽŠ‹ǡƒŽ…—––ƒ‘”ƒ†”ƒ•ǡ‘‡ǦŠƒŽˆ‘ˆ–Š‡ƒ‘—–‘ˆ
•ƒŽƒ”›†—‡–‘–Š‡ƒ••‡••‡‡ˆ‘”–Š‡”‡Ž‡˜ƒ–’‡”‹‘†Ǣ
ȋ‹˜Ȍ Š‡”‡–Š‡ƒ……‘‘†ƒ–‹‘‹••‹–—ƒ–‡†ƒ–ƒ›‘–Š‡”’Žƒ…‡ǡ–™‘Ǧϐ‹ˆ–Š‘ˆ–Š‡•ƒŽƒ”›†—‡–‘–Š‡ƒ••‡••‡‡ˆ‘”–Š‡
”‡Ž‡˜ƒ–’‡”‹‘†Ǥ
……‘”†‹‰Ž›ǡ”Ǥƒ™‘—Ž†„‡‡–‹–Ž‡†–‘–Š‡Ž‡ƒ•–‘ˆǣ
ȋ‹Ȍ •ǤͷǡͲͲͲǢ‘”
ȋ‹‹Ȍ •Ǥ͸ǡͲͲͲ„‡‹‰‡š…‡••‘ˆ”‡–‘˜‡”ͳȀͳͲ–Š‘ˆ•ƒŽƒ”›Ǣ‘”
ȋ‹‹‹Ȍ •Ǥ͵ͲǡͲͲͲȋ„‡‹‰‘‡ǦŠƒŽˆ‘ˆ–Š‡•ƒŽƒ”›‘ˆ–Š‡ƒ••‡••‡‡ȌǤ
•ǤͷǡͲͲͲǡ„‡‹‰–Š‡Ž‡ƒ•–ǡ™‘—Ž†‘–„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ”ǤƒǤ‘–Š‡‡–‹”‡ƒ‘—–‘ˆ
™‘—Ž†„‡‡š‡’–ˆ”‘–ƒšǤ
ƒŽƒ”› ˆ‘” –Š‹• ’—”’‘•‡ ‹…Ž—†‡• „ƒ•‹… •ƒŽƒ”› ƒ• ™‡ŽŽ ƒ• †‡ƒ”‡•• ƒŽŽ‘™ƒ…‡ ‹ˆ –Š‡ –‡”• ‘ˆ ‡’Ž‘›‡– •‘
’”‘˜‹†‡Ǥ–ƒŽ•‘‹…Ž—†‡•…‘‹••‹‘„ƒ•‡†‘ƒϐ‹š‡†’‡”…‡–ƒ‰‡‘ˆ–—”‘˜‡”ƒ…Š‹‡˜‡†„›ƒ‡’Ž‘›‡‡ƒ•’‡”
–‡”•‘ˆ…‘–”ƒ…–‘ˆ‡’Ž‘›‡–„—–‡š…Ž—†‡•ƒŽŽ‘–Š‡”ƒŽŽ‘™ƒ…‡•ƒ†’‡”“—‹•‹–‡•ƒ†–Š‡•‡ƒ”‡†‡–‡”‹‡†‘
†—‡„ƒ•‹•ˆ‘”–Š‡’‡”‹‘††—”‹‰™Š‹…Š”‡–ƒŽƒ……‘‘†ƒ–‹‘‹•‘……—’‹‡†„›–Š‡‡’Ž‘›‡‡‹–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 145

Illustration 9:
”ǤŠ›ƒǡ‡’Ž‘›‡†ƒ–—„ƒ‹ǡ”‡…‡‹˜‡•–Š‡ˆ‘ŽŽ‘™‹‰ˆ”‘Š‹•‡’Ž‘›‡”†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǣ

Particulars Rs.
ƒ•‹…ƒŽƒ”› ͸ͲǡͲͲͲ
‘—• ͳǡͺͲͲ
–‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡ȋ–ƒšƒ„Ž‡Ȍ ͸ǡͲͲͲ
Ž‡…–”‹…‹–›‡š’‡•‡• ʹǡͲͲͲ
”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›–Š‡‡’Ž‘›‡” ʹǡͲͲͲ
‡–ˆ”‡‡Š‘—•‡ȋ‘™‡†„›’Ž‘›‡”Ȍǣ
ƒ‹””‡– ͶͺǡͲͲͲ
ƒŽƒ”›‘ˆ‰ƒ”†‡‡” ʹǡͶͲͲ

ƒ”†‡ƒ‹–‡ƒ…‡ ͳǡʹͲͲ
ƒŽƒ”›‘ˆ™ƒ–…Šƒ ͳǡͺͲͲ
‡–‡”‹‡–Š‡˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡’‡”“—‹•‹–‡•‹”‡•’‡…–‘ˆ”‡–ˆ”‡‡Š‘—•‡ƒ••—‹‰ȋƒȌ”ǤŠ›ƒ‹•ƒ
‘˜‡”‡–
ˆϐ‹…‡”ƒ†–Š‡ˆƒ‹””‡–ƒ•ƒ””‹˜‡†ƒ–„›–Š‡
‘˜‡”‡–‹••Ǥ͸ǡͲͲͲ’ǤƒǤȋ„Ȍ”ǤŠ›ƒ‹•ƒ•‡‹Ǧ
‘˜‡”‡–
‡’Ž‘›‡‡ǡƒ†ȋ…Ȍ”ǤŠ›ƒ‹•‡’Ž‘›‡†„›ƒ’”‹˜ƒ–‡…‘’ƒ›Ǥ
Solution:
ȋƒȌ ˆ”ǤŠ›ƒ‹•ƒ
‘˜‡”‡–ˆϐ‹…‡”ǣ•’‡”—Ž‡͵ȋͳȌ‘ˆ…‘‡Ǧ–ƒš—Ž‡•ǡ•Ǥ͸ǡͲͲͲ’ǤƒǤ„‡‹‰–Š‡”‡–
‘ˆ–Š‡Š‘—•‡ƒ•’‡”
‘˜‡”‡–”—Ž‡•ǡ™‹ŽŽ„‡–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡Ǥ
(b) If Mr. Shyam is a semi-Government employee: •’‡”—Ž‡͵ȋͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡ–Š‡˜ƒŽ—‡‘ˆ–Š‡
’‡”“—‹•‹–‡‹”‡•’‡…–‘ˆ”‡–ˆ”‡‡ƒ……‘‘†ƒ–‹‘‹•–ƒ‡ƒ–ͳͷΨ‘ˆ•ƒŽƒ”›‘ˆ–Š‡‡’Ž‘›‡‡ȋƒ•–Š‡Š‘—•‡
‹•‘™‡†„›–Š‡’Ž‘›‡”ƒ†’”‘˜‹†‡†‹—„ƒ‹ȌǤ
 ƒŽƒ”›α•Ǥ͸͹ǡͺͲͲȋ•Ǥ͸ͲǡͲͲͲΪͳǡͺͲͲΪ͸ǡͲͲͲȌ
 ͳͷΨ‘ˆ•ƒŽƒ”›α•ǤͳͲǡͳ͹Ͳƒ†
 Š‡”‡ˆ‘”‡ǡ•ǤͳͲǡͳ͹Ͳ‹•–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡’‡”“—‹•‹–‡Ǥ
—”–Š‡”ǡ–Š‡˜ƒŽ—‡‘ˆŽ‡…–”‹…‹–›‡š’‡•‡•ƒ†”‘ˆ‡••‹‘ƒŽƒš’ƒ‹†„›–Š‡‡’Ž‘›‡”ǡ„‡‹‰’‡”“—‹•‹–‡•ǡƒ”‡
‘–‹…Ž—†‡†‹–Š‡•ƒŽƒ”›ˆ‘”˜ƒŽ—ƒ–‹‘‘ˆ‡– ”‡‡‘—•‡……‘‘†ƒ–‹‘Ǥ
(c) If Mr. Shyam is employed in Private Company: Š‡ ˜ƒŽ—‡ ‘ˆ ’‡”“—‹•‹–‡ ‹ –Š‹• …ƒ•‡ •ŠƒŽŽ ƒŽ•‘ „‡ •Ǥ
ͳͲǡͳ͹ͲǤ†‡”–Š‡‡™”—Ž‡•–Š‡”‡‹•‘†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡•‡‹Ǧ
‘˜–Ǥƒ†‘–Š‡”‡’Ž‘›‡‡•Ǥ
NoteǣŠ‡‘Ž—–‹‘‹•’”‘˜‹†‡†ƒ••—‹‰ƒ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ‘™‡˜‡”ǡ‡˜‡‹ˆŠ‡™‘—Ž†
Šƒ˜‡‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǡ–Š‡•‘Ž—–‹‘™‘—Ž†„‡•ƒ‡Ǥ

Illustration 10:
”Ǥƒƒ‘‘”–Š›ǡƒ‡’Ž‘›‡‡‘ˆȀ•Ǥ
‘’ƒŽ”‹•ŠƒƬ‘Ǥ‘ˆŠ‡ƒ‹”‡…‡‹˜‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‡†‡†
ƒ”…Š͵ͳǡʹͲʹʹ–Š‡ˆ‘ŽŽ‘™‹‰’ƒ›‡–•ǣ

Particulars (Rs.)
ƒ•‹…ƒŽƒ”› ͶͲǡͲͲͲ
‡ƒ”‡••ƒŽŽ‘™ƒ…‡ ͵ǡͲͲͲ
‡ƒ˜‡ƒŽƒ”› ͷǡͶͲͲ
146 Lesson 4 Ȉ EP-TL

”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›‡’Ž‘›‡” ͳǡͲͲͲ
ƒ‹””‡–‘ˆ–Š‡ϐŽƒ–’”‘˜‹†‡†„›‡’Ž‘›‡” ͸ǡͲͲͲ
‡–’ƒ‹†ˆ‘”ˆ—”‹–—”‡ ͳǡͲͲͲ
‡–”‡…‘˜‡”‡†„›‡’Ž‘›‡” ͵ǡͲͲͲ
‘–”‹„—–‹‘–‘–ƒ–—–‘”›”‘˜‹†‡– —† ͶǡͲͲͲ
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘–ƒ–—–‘”›”‘˜‹†‡– —† ͶǡͲͲͲ

‘’—–‡Š‹•–ƒšƒ„Ž‡‹…‘‡ˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵Ǥ
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
‘’—–ƒ–‹‘‘ˆ–ƒšƒ„Ž‡‹…‘‡‘ˆ”Ǥƒƒ‘‘”–›ˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

Particulars Amount (Rs.)

ƒ•‹…ƒ› ͶͲǡͲͲͲ
‡ƒ”‡••ƒŽŽ‘™ƒ…‡ ͵ǡͲͲͲ
‡ƒ˜‡•ƒŽƒ”› ͷǡͶͲͲ
”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›‡’Ž‘›‡” ͳǡͲͲͲ
‡”“—‹•‹–‡ˆ‘”‘—•‡ǣ
ͳͷΨ‘ˆ•ƒŽƒ”›ȋ•ǤͶͲǡͲͲͲΪ͵ǡͲͲͲΪͷǡͶͲͲȌ͹ǡʹ͸Ͳ
Addǣ —”‹–—”‡”‡–ͳǡͲͲͲ
Lessǣ‡–”‡…‘˜‡”‡†ȋǦȌ͵ǡͲͲͲ ͷǡʹ͸Ͳ
ͷͶǡ͸͸Ͳ
Lessǣ–ƒ†ƒ”†‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌ ȋͷͲǡͲͲͲȌ
‡••ǣ”‘ˆ‡••‹‘ƒŽ–ƒš—Ȁ•ͳ͸ ͳǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͵ǡ͸͸Ͳ
‡••ǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲ ȋ͵ǡ͸͸ͲȌ
‘–ƒŽ‹…‘‡ 
‘–ƒŽ–ƒš’ƒ›ƒ„Ž‡ 

Noteǣ••—‡†–Šƒ–†‡ƒ”‡••ƒŽŽ‘™ƒ…‡ˆ‘”•’ƒ”–‘ˆ–Š‡•ƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘‘ˆ•—’‡”ƒ—ƒ–‹‘
‘””‡–‹”‡‡–„‡‡ϐ‹–•Ǥ
Option 2: Assessee has opted for Section 115BAC
‘’—–ƒ–‹‘‘ˆ–ƒšƒ„Ž‡‹…‘‡‘ˆ”Ǥƒƒ‘‘”–›ˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

Particulars Amount (Rs.)

ƒ•‹…ƒ› ͶͲǡͲͲͲ
‡ƒ”‡••ƒŽŽ‘™ƒ…‡ ͵ǡͲͲͲ
‡ƒ˜‡•ƒŽƒ”› ͷǡͶͲͲ
Lesson 4 Ȉ Part I - Income under the Head “Salaries” ͳͶ͹

”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›‡’Ž‘›‡” ͳǡͲͲͲ
‡”“—‹•‹–‡ˆ‘”‘—•‡ǣ
ͳͷΨ‘ˆ•ƒŽƒ”›ȋ•ǤͶͲǡͲͲͲΪ͵ǡͲͲͲΪͷǡͶͲͲȌ͹ǡʹ͸Ͳ
††ǣ —”‹–—”‡”‡–ͳǡͲͲͲ ‡••ǣ‡–”‡…‘˜‡”‡†ȋǦȌ͵ǡͲͲͲ ͷǡʹ͸Ͳ
ͷͶǡ͸͸Ͳ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌ ȋȌ
‡••ǣ”‘ˆ‡••‹‘ƒŽ–ƒš—Ȁ•ͳ͸ ȋȌ

”‘••‘–ƒŽ…‘‡ ͷͶǡ͸͸Ͳ
‡••ǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲ ȋȌ
‘–ƒŽ‹…‘‡ ͷͶ͸͸Ͳ
‘–ƒŽ–ƒš’ƒ›ƒ„Ž‡ 

Note:
••—‡†–Šƒ–†‡ƒ”‡••ƒŽŽ‘™ƒ…‡ˆ‘”•’ƒ”–‘ˆ–Š‡•ƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘‘ˆ•—’‡”ƒ—ƒ–‹‘
‘””‡–‹”‡‡–„‡‡ϐ‹–•Ǥ
‡†—…–‹‘—Ȁ•ͳ͸ƬͺͲ‹•‘–ƒŽŽ‘™‡†ƒ•–Š‡ƒ••‡••‡‡Šƒ•‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ

Illustration 11:
ƒƒǡƒ‡’Ž‘›‡‡‘ˆ–Š‡
ƒ•—’’Ž›–†Ǥǡ‰”ƒǡ”‡…‡‹˜‡•–Š‡ˆ‘ŽŽ‘™‹‰‡‘Ž—‡–•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”
ʹͲʹͳǦʹʹǤ

Particulars (Rs.)
ƒ•‹…’ƒ› ͳͲǡͲͲͲ
”‘Œ‡…–ƒŽŽ‘™ƒ…‡ ͳǡͺͲͲ
””‡ƒ”•‘ˆ’”‘Œ‡…–ƒŽŽ‘™ƒ…‡‘ˆƒ›ǡʹͲͳͺ ͳͷͲ
”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›–Š‡‡’Ž‘›‡” ʹͲͲ
‡–ˆ”‡‡ˆ—”‹•Š‡†Š‘—•‡
Ǧ ƒ‹””‡–‘ˆ–Š‡Š‘—•‡ ʹǡͲͲͲ
Ǧ‡–‘ˆˆ—”‹–—”‡ ͷͲͲ
”‡‡‰ƒ••—’’Ž› ͶͲͲ
‡”˜‹…‡‘ˆ•™‡‡’‡” ͸ͲͲ
‡”˜‹…‡•‘ˆ‰ƒ”†‡‡” ͳǡͲͲͲ
‡”˜‹…‡‘ˆ…‘‘ ͺͲͲ
”‡‡Ž—…Š ʹǡͶͲͲ
”‡‡—•‡‘ˆ…Šƒ—ˆˆ‡—”†”‹˜‡ ‹ƒ–…ƒ”™Š‹…Š‹•—•‡†’ƒ”–Ž›ˆ‘”‘ˆϐ‹…‹ƒŽƒ†’ƒ”–Ž›ˆ‘”’”‹˜ƒ–‡’—”’‘•‡•Ǥ
‡‹•ƒ‡„‡”‘ˆ”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†–‘™Š‹…ŠŠ‡…‘–”‹„—–‡••ǤͳǡͷͲͲǤ‹•‡’Ž‘›‡”ƒŽ•‘…‘–”‹„—–‡•
ƒ‡“—ƒŽƒ‘—–Ǥ‡†‡’‘•‹–••Ǥ͸ͲͲ’‡”‘–Š‹ͳͲ›‡ƒ”ƒ……‘—–—†‡”–Š‡‘•–ˆϐ‹…‡ƒ˜‹‰•ƒȋȌ
—Ž‡•Ǥ‡–‡”‹‡Š‹•–ƒšƒ„Ž‡‹…‘‡ƒ†–ƒš’ƒ›ƒ„Ž‡–Š‡”‡‘ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ǤȋƒȌˆƒƒ‹•ƒ
†‹”‡…–‘”‹–Š‡‡’Ž‘›‡”…‘’ƒ›ƒ†–Š‡”‡–Ǧˆ”‡‡Š‘—•‡‹•‘™‡†„›‹–ǡȋ„Ȍˆƒƒ‹•‡‹–Š‡”ƒ†‹”‡…–‘”‘”
ƒ•Šƒ”‡Š‘Ž†‡”‹–Š‡‡’Ž‘›‡”…‘’ƒ›ƒ†–Š‡”‡–Ǧˆ”‡‡Š‘—•‡‹•‘–‘™‡†„›‹–Ǥ
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
148 Lesson 4 Ȉ EP-TL

Solution:
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷǤ‹•–ƒšƒ„Ž‡‹…‘‡™‹ŽŽ„‡…‘’—–‡†ƒ•—†‡”ǣ

If Raman is a director If Raman is neither

and rent-free house is a director nor a
Particulars owned by the company shareholder and rent-
free house is not owned
by the company

Ǯǯ Ǯǯ
ȋͳȌ ȋʹȌ ȋ͵Ȍ
•Ǥ •Ǥ
ƒ•‹…ƒ› ͳͲǡͲͲͲ ͳͲǡͲͲͲ
”‘Œ‡…–ƒŽŽ‘™ƒ…‡ ͳǡͺͲͲ ͳǡͺͲͲ
””‡ƒ”•‘ˆ’”‘Œ‡…–ƒŽŽ‘™ƒ…‡‘ˆƒ›ǡʹͲͳͺ ͳͷͲ ͳͷͲ
”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›–Š‡‡’Ž‘›‡” ʹͲͲ ʹͲͲ
‡–ˆ”‡‡ˆ—”‹•Š‡†Š‘—•‡ǣ
ȂͳͷΨ‘ˆƒŽƒ”› ͳǡ͹͹Ͳ ͳǡ͹͹Ͳ
Ȃ‡–‘ˆˆ—”‹–—”‡ ͷͲͲ ͷͲͲ
”‡‡‰ƒ••—’’Ž› ͶͲͲ ‹Ž
‡”˜‹…‡‘ˆ•™‡‡’‡” ͸ͲͲ ‹Ž
‡”˜‹…‡‘ˆ‰ƒ”†‡‡” ͳǡͲͲͲ ‹Ž
‡”˜‹…‡‘ˆ…‘‘ ͺͲͲ ‹Ž
”‡‡Ž—…Š ‹Ž ‹Ž
š…‡•• ‘ˆ ‡’Ž‘›‡”ǯ• …‘–”‹„—–‹‘ –‘™ƒ”†• ’”‘˜‹†‡– ͵ͲͲ ͵ͲͲ
ˆ—†‘˜‡”ͳʹΨ‘ˆ•ƒŽƒ”›ȋͳǡͷͲͲǦͳʹΨ‘ˆ•ǤͳͲǡͲͲͲȌ

”‘•••ƒŽƒ”› ͳ͹ǡͷʹͲ ͳͶǡ͹ʹͲ
‡†—…–‹‘ǣ–ƒ†ƒ”†‡†—…–‹‘ȋƒš‹—•ǤͷͲǡͲͲͲȌ ͳ͹ǡͷʹͲ ͳͶǡ͹ʹͲ
‡–…‘‡ˆ”‘ƒŽƒ”› ‹Ž ‹Ž
ƒš‘–‘–ƒŽ‹…‘‡ ‹Ž ‹Ž

Notes:
ȋͳȌ –‹•ƒ••—‡†–Šƒ––Š‡ƒ””‡ƒ”•‘ˆ’”‘Œ‡…–ƒŽŽ‘™ƒ…‡ƒ”‡–ƒšƒ„Ž‡‘”‡…‡‹’–„ƒ•‹•Ǥ
ȋʹȌ ‡”“—‹•‹–‡‹”‡•’‡…–‘ˆ‡– ”‡‡Š‘—•‡‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆƒŽŽ–Š‡ƒ••‡••‡‡•Ǥ–Š‹•…ƒ•‡ˆƒ‹”ƒ”‡–
˜ƒŽ—‡Šƒ•‘”‡Ž‡˜ƒ…›ƒ†ƒ••—‡†–Šƒ––Š‡Š‘—•‡‹•‘™‡†„›–Š‡‡’Ž‘›‡”Ǥ‹…‡–Š‡Š‘—•‡‹•’”‘˜‹†‡†‹
‰”ƒǡ’‘’—Žƒ–‹‘‹•ƒ••—‡†ƒ•‡š…‡‡†‹‰ʹͷŽƒŠ•ǤƒŽƒ”›ˆ‘”˜ƒŽ—ƒ–‹‘‘ˆ’‡”“—‹•‹–‡‹•ȋͳͲǡͲͲͲΪͳǡͺͲͲȌǤ
ȋ͵Ȍ Š‡ˆ”‡‡•™‡‡’‡”ǡ‰ƒ”†‡‡”ǡ…‘‘ǡŽ—…Šǡ…ƒ”‡–…Ǥƒ”‡‘––ƒšƒ„Ž‡‹–Š‡•‡…‘†…ƒ•‡ǡ„‡…ƒ—•‡ƒƒ†‘‡•
‘–ˆƒŽŽ‹–Š‡…ƒ–‡‰‘”›‘ˆ•’‡…‹ϐ‹‡†‡’Ž‘›‡‡—†‡”‡…–‹‘ͳ͹ȋʹȌȋ‹‹‹Ȍ‘ˆ–Š‡…–‹Ǥ‡ǤǡŠ‡‹•‡‹–Š‡”ƒ†‹”‡…–‘”
‘”Š‹••ƒŽƒ”›‹••ǤͷͲǡͲͲͲ’ǤƒǤ‘”‘”‡Ǥ
ȋͶȌ ”‡‡Ž—…Š’”‘˜‹†‡†‹•‘––ƒšƒ„Ž‡–‘–Š‡‡š–‡–‘ˆ•ǤͷͲ’‡”†ƒ›Ǥ
ȋͷȌ ‹…‡ ƒƒ ‹• ‡’Ž‘›‡† ‹ ƒ
ƒ• •—’’Ž› …‘’ƒ›ǡ –Š‡ ˜ƒŽ—‡ ‘ˆ ‰ƒ• •—’’Ž‹‡† ‹• –ƒšƒ„Ž‡ ƒ• …‘•– –‘ –Š‡
‡’Ž‘›‡”Ǥ†‹–‹•ƒ••—‡†–Šƒ––Š‡…‘•–‘ˆ•—’’Ž›‹••ƒ‡ƒ••ǤͶͲͲƒ•‰‹˜‡Ǥ
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 149

Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
‹•–ƒšƒ„Ž‡‹…‘‡™‹ŽŽ„‡…‘’—–‡†ƒ•—†‡”ǣ

If Raman is a director If Raman is neither

and rent-free house is a director nor a
Particulars owned by the company shareholder and
rent- free house is not
owned by the company
Ǯǯ Ǯǯ
ȋͳȌ ȋʹȌ ȋ͵Ȍ
•Ǥ •Ǥ
ƒ•‹…ƒ› ͳͲǡͲͲͲ ͳͲǡͲͲͲ
”‘Œ‡…–ƒŽŽ‘™ƒ…‡ ͳǡͺͲͲ ͳǡͺͲͲ
””‡ƒ”•‘ˆ’”‘Œ‡…–ƒŽŽ‘™ƒ…‡‘ˆƒ›ǡʹͲͳͺ ͳͷͲ ͳͷͲ
”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›–Š‡‡’Ž‘›‡” ʹͲͲ ʹͲͲ
‡–ˆ”‡‡ˆ—”‹•Š‡†Š‘—•‡ǣ
ȂͳͷΨ‘ˆƒŽƒ”› ͳǡ͹͹Ͳ ͳǡ͹͹Ͳ
Ȃ‡–‘ˆˆ—”‹–—”‡ ͷͲͲ ͷͲͲ
”‡‡‰ƒ••—’’Ž› ͶͲͲ ‹Ž
‡”˜‹…‡‘ˆ•™‡‡’‡” ͸ͲͲ ‹Ž
‡”˜‹…‡‘ˆ‰ƒ”†‡‡” ͳǡͲͲͲ ‹Ž
‡”˜‹…‡‘ˆ…‘‘ ͺͲͲ ‹Ž
”‡‡Ž—…Š ʹͶͲͲ ʹͶͲͲ
š…‡•• ‘ˆ ‡’Ž‘›‡”ǯ• …‘–”‹„—–‹‘ –‘™ƒ”†• ’”‘˜‹†‡– ͵ͲͲ ͵ͲͲ
ˆ—†‘˜‡”ͳʹΨ‘ˆ•ƒŽƒ”›ȋͳǡͷͲͲǦͳʹΨ‘ˆ•ǤͳͲǡͲͲͲȌ

”‘•••ƒŽƒ”› ͳͻǡͻʹͲ ͳ͹ǡͳʹͲ
‡†—…–‹‘ǣ–ƒ†ƒ”†‡†—…–‹‘ ‹Ž ‹Ž
‡–…‘‡ˆ”‘ƒŽƒ”› ͳͻǡͻʹͲ ͳ͹ǡͳʹͲ
ƒš‘–‘–ƒŽ‹…‘‡ ‹Ž ‹Ž

Notes:
ȋͳȌ –‹•ƒ••—‡†–Šƒ––Š‡ƒ””‡ƒ”•‘ˆ’”‘Œ‡…–ƒŽŽ‘™ƒ…‡ƒ”‡–ƒšƒ„Ž‡‘”‡…‡‹’–„ƒ•‹•Ǥ
ȋʹȌ ‡”“—‹•‹–‡‹”‡•’‡…–‘ˆ‡– ”‡‡Š‘—•‡‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆƒŽŽ–Š‡ƒ••‡••‡‡•Ǥ–Š‹•…ƒ•‡ˆƒ‹”ƒ”‡–
˜ƒŽ—‡Šƒ•‘”‡Ž‡˜ƒ…›ƒ†‹–‹•ƒ••—‡†–Šƒ––Š‡Š‘—•‡‹•‘™‡†„›–Š‡‡’Ž‘›‡”Ǥ‹…‡–Š‡Š‘—•‡‹•
’”‘˜‹†‡† ‹ ‰”ƒǡ ’‘’—Žƒ–‹‘ ‹• ƒ••—‡† ƒ• ‡š…‡‡†‹‰ ʹͷ ŽƒŠ•Ǥ ƒŽƒ”› ˆ‘” ˜ƒŽ—ƒ–‹‘ ‘ˆ ’‡”“—‹•‹–‡ ‹•
ȋͳͲǡͲͲͲΪͳǡͺͲͲȌǤ
ȋ͵Ȍ Š‡ˆ”‡‡•™‡‡’‡”ǡ‰ƒ”†‡‡”ǡ…‘‘ǡŽ—…Šǡ…ƒ”‡–…Ǥƒ”‡‘––ƒšƒ„Ž‡‹–Š‡•‡…‘†…ƒ•‡ǡ„‡…ƒ—•‡ƒƒ†‘‡•
‘–ˆƒŽŽ‹–Š‡…ƒ–‡‰‘”›‘ˆ•’‡…‹ϐ‹‡†‡’Ž‘›‡‡—†‡”‡…–‹‘ͳ͹ȋʹȌȋ‹‹‹Ȍ‘ˆ–Š‡…–‹Ǥ‡ǤǡŠ‡‹•‡‹–Š‡”ƒ†‹”‡…–‘”
‘”Š‹••ƒŽƒ”›‹••ǤͷͲǡͲͲͲ’ǤƒǤ‘”‘”‡Ǥ
ȋͶȌ ”‡‡Ž—…Š’”‘˜‹†‡†‹•–ƒšƒ„Ž‡ƒ•–Š‡ƒ••‡••‡‡‹•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷǤ
ȋͷȌ ‹…‡ ƒƒ ‹• ‡’Ž‘›‡† ‹ ƒ
ƒ• •—’’Ž› …‘’ƒ›ǡ –Š‡ ˜ƒŽ—‡ ‘ˆ ‰ƒ• •—’’Ž‹‡† ‹• –ƒšƒ„Ž‡ ƒ• …‘•– –‘ –Š‡
‡’Ž‘›‡”Ǥ†‹–‹•ƒ••—‡†–Šƒ––Š‡…‘•–‘ˆ•—’’Ž›‹••ƒ‡ƒ••ǤͶͲͲƒ•‰‹˜‡Ǥ
ȋ͸Ȍ ‘†‡†—…–‹‘‹•ƒŽŽ‘™‡†—Ȁ•ͳ͸ƒ•–Š‡ƒ••‡••‡‡‹•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
150 Lesson 4 Ȉ EP-TL

Illustration 12:
‘”–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͳǦʹʹǡǮǯǡƒ‡–”ƒŽ
‘˜‡”‡–ˆϐ‹…‡””‡…‡‹˜‡••ƒŽƒ”›‘ˆ•Ǥ͹͹ǡͲͲͲȋ‹…Ž—†‹‰†‡ƒ”‡••
ƒŽŽ‘™ƒ…‡‘ˆ•ǤͶʹǡͲͲͲȌƒ†‡–‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡‘ˆ•ǤͳͺǡͲͲͲǤ‹•…‘–”‹„—–‹‘–‘’”‘˜‹†‡–ˆ—††—”‹‰
–Š‹•’‡”‹‘†‹••Ǥ͹ǡʹͲͲǤƒ††‹–‹‘ǡŠ‡Šƒ•’—”…Šƒ•‡†ƒ–‹‘ƒŽƒ˜‹‰•‡”–‹ϐ‹…ƒ–‡•ȋ••—‡Ȍˆ‘”•Ǥ͸ǡͲͲͲǤ‡
Šƒ•„‡‡’”‘˜‹†‡†™‹–Šƒ……‘‘†ƒ–‹‘„›–Š‡
‘˜‡”‡–ˆ‘”™Š‹…Š–Š‡”‡–†‡–‡”‹‡†‹••Ǥ͵͹ͷ’‡”‘–Š
ƒ†–Š‹•‹•”‡…‘˜‡”‡†ˆ”‘ǯ••ƒŽƒ”›Ǥ‘’—–‡ǯ•–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ƒ••—‹‰–Šƒ–Š‡
Šƒ•‘‘–Š‡”‹…‘‡Ǥ
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
 ƒ‡‘ˆƒ••‡••‡‡ǣ”Ǥ••‡••‡–‡ƒ”ǣʹͲʹʹǦʹ͵
 –ƒ–—•ǣ‡•‹†‡–Ȁ†‹˜‹†—ƒŽ
 –ƒ–‡‡–‘ˆ••‡••ƒ„Ž‡…‘‡

Particulars (Rs.) (Rs.)

ƒŽƒ”›ˆ”‘‡–”ƒŽ
‘˜‡”‡– ͹͹ǡͲͲͲ
–‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡ ͳͺǡͲͲͲ
‡••ǣ –‡”–ƒ‹‡–ŽŽ‘™ƒ…‡ —†‡” ‡…–‹‘ ͳ͸ȋ‹‹Ȍ •Ǥ ͷǡͲͲͲ ‘” ȏͳȀͷ–Š ‘ˆ •ƒŽƒ”› ȋͷǡͲͲͲȌ ȋͳ͵ǡͲͲͲȌ
‡š…Ž—•‹˜‡‘ˆƒ›ƒŽŽ‘™ƒ…‡ǡ„‡‡ϐ‹–‘”’‡”“—‹•‹–‡Ȑ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌ ȋͷͲǡͲͲͲȌ

 ͳͶǡͲͲͲ
‡••ǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲȋ͹ǡʹͲͲΪ͸ǡͲͲͲȌ ȋͳ͵ǡʹͲͲȌ
‘–ƒŽ…‘‡ ͺͲͲ
ƒšŽ‹ƒ„‹Ž‹–› ‹Ž
‡––ƒš’ƒ›ƒ„Ž‡ ‹Ž
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Name of Assessee: ”Ǥ••‡••‡–‡ƒ”ǣʹͲʹʹǦʹ͵
–ƒ–—•ǣ‡•‹†‡–Ȁ†‹˜‹†—ƒŽ
–ƒ–‡‡–‘ˆƒ••‡••ƒ„Ž‡‹…‘‡

Particulars (Rs.)
ƒŽƒ”›ˆ”‘‡–”ƒŽ
‘˜‡”‡– ͹͹ǡͲͲͲ
–‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡ ͳͺǡͲͲͲ
‡••ǣ ‡†—…–‹‘—Ȁ•ͳ͸ ‹Ž

”‘••‘–ƒŽ…‘‡ ͻͷǡͲͲͲ
‡••ǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲ ‹Ž
‘–ƒŽ…‘‡ ͻͷǡͲͲͲ
ƒšŽ‹ƒ„‹Ž‹–› ‹Ž
‡––ƒš’ƒ›ƒ„Ž‡ ‹Ž
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 151

Illustration 13:
”Ǥ‹•‡’Ž‘›‡†‹–†Ǥ‰‡––‹‰„ƒ•‹…’ƒ›•Ǥ͸ͲǡͲͲͲ’ǤǤƒ††‡ƒ”‡••ƒŽŽ‘™ƒ…‡•ǤͳͲǡͲͲͲ’ǤǤȋˆ‘”‹‰
’ƒ”–‘ˆ•ƒŽƒ”›ȌǤ’Ž‘›‡”Šƒ•’ƒ‹†„‘—••ǤʹͲǡͲͲͲ†—”‹‰–Š‡›‡ƒ”Ǥ‘‹••‹‘™ƒ•ƒŽŽ‘™‡†̷ʹΨ‘ˆ•ƒŽ‡•
–—”‘˜‡”‘ˆ•ǤͷͲǡͲͲǡͲͲͲǤŠ‡‡’Ž‘›‡”ƒ†‡’Ž‘›‡‡„‘–Šƒ”‡…‘–”‹„—–‹‰•ǤͳͳǡͲͲͲȋ‡ƒ…ŠȌ–‘–Š‡”‡…‘‰‹•‡†
’”‘˜‹†‡–ˆ—†Ǥ—”‹‰–Š‡›‡ƒ”‹–‡”‡•–‘ˆ•ǤͳǡͲͲǡͲͲͲ™ƒ•…”‡†‹–‡†–‘–Š‡ ̷ͳͲΨ’ǤƒǤ‘’—–‡–ƒšŽ‹ƒ„‹Ž‹–›
‘ˆ”Ǥˆ‘”ǤǤʹͲʹʹǦʹ͵Ǥ
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Particulars Amount (INR)

ƒ•‹…ƒ›ȋ͸ͲǡͲͲͲšͳʹȌ ͹ǡʹͲǡͲͲͲ
‡ƒ”‡••ƒŽŽ‘™ƒ…‡ȋͳͲǡͲͲͲšͳʹȌ ͳǡʹͲǡͲͲͲ
‘—• ʹͲǡͲͲͲ
‘‹••‹‘ȋͷͲǡͲͲǡͲͲͲšʹΨȌ ͳǡͲͲǡͲͲͲ
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘ εͳʹΨƒŽƒ”› ͳͻǡʹͲͲ
–‡”‡•–…”‡†‹–‡†‹‡š…‡••‘ˆͻǤͷΨ’ǤƒǤȋͳǡͲͲǡͲͲͲȀͳͲΨšͲǤͷΨȌ ͷͲͲ

”‘••ƒŽƒ”› ͻǡ͹ͻǡ͹ͲͲ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘—Ȁ•ͳ͸ȋ‹ƒȌ ȋͷͲǡͲͲͲȌ
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› ͻǡʹͻǡ͹ͲͲ

”‘••‘–ƒŽ…‘‡ ͻǡʹͻǡ͹ͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ ȋͳǡ͵ʹǡͲͲͲȌ
‘–ƒŽ…‘‡ ͹ǡͻ͹ǡ͹ͲͲ
‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›
ƒš‘•Ǥ͹ǡͻ͹ǡ͹ͲͲƒ–•Žƒ„”ƒ–‡ ͹ʹǡͲͶͲ
††ǣ̷ͶΨ ʹǡͺͺʹ
ƒš‹ƒ„‹Ž‹–›•Ǥ͹ͶǡͻʹʹȋȀȌ ͹ͶǡͻʹͲ

Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Particulars Amount (INR)

ƒ•‹…ƒ›ȋ͸ͲǡͲͲͲšͳʹȌ ͹ǡʹͲǡͲͲͲ
‡ƒ”‡••ƒŽŽ‘™ƒ…‡ȋͳͲǡͲͲͲšͳʹȌ ͳǡʹͲǡͲͲͲ
‘—• ʹͲǡͲͲͲ
‘‹••‹‘ȋͷͲǡͲͲǡͲͲͲšʹΨȌ ͳǡͲͲǡͲͲͲ
’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘ εͳʹΨƒŽƒ”› ͳͻǡʹͲͲ
–‡”‡•–…”‡†‹–‡†‹‡š…‡••‘ˆͻǤͷΨ’ǤƒǤȋͳǡͲͲǡͲͲͲȀͳͲΨšͲǤͷΨȌ ͷͲͲ

”‘••ƒŽƒ”› ͻǡ͹ͻǡ͹ͲͲ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘—Ȁ•ͳ͸ȋ‹ƒȌ ȋ‹ŽȌ
152 Lesson 4 Ȉ EP-TL

…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› ͻǡ͹ͻǡ͹ͲͲ

”‘••‘–ƒŽ…‘‡ ͻǡ͹ͻǡ͹ͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ ȋ‹ŽȌ
‘–ƒŽ…‘‡ ͻǡ͹ͻǡ͹ͲͲ
‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›
ƒš‘•Ǥͻǡ͹ͻǡ͹ͲͲƒ–•Žƒ„”ƒ–‡ȏ‡…–‹‘ͳͳͷ‘–‡ͳȐ ͹ͳǡͻͷͷ
††ǣ̷ͶΨ ʹǡͺ͹ͺ
ƒš‹ƒ„‹Ž‹–›•Ǥ͹Ͷǡͺ͵͵ȋȀȌ ͹Ͷǡͺ͵Ͳ

Note:
ͳǤ ‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›ƒš‘•Ǥͻǡ͹ͻǡ͹ͲͲƒ–‡™•Žƒ„”ƒ–‡ȏ‡…–‹‘ͳͳͷȐͲ–‘ʹǡͷͲǡͲͲͲǣ‹Ž
 εʹǡͷͲǡͲͲͲ–‘ͷǡͲͲǡͲͲͲ̷ͷΨǣͳʹǡͷͲͲ
 εͷǡͲͲǡͲͲͲ–‘͹ǡͷͲǡͲͲͲ̷ͳͲΨǣʹͷǡͲͲͲ
 ε͹ǡͷͲǡͲͲͲ–‘ͻǡ͹ͻǡ͹ͲͲ̷ͳͷΨǣ͵ͶǡͶͷͷ
 ‘–ƒŽα͹ͳͻͷͷ
ʹǤ ƒŽƒ”›ˆ‘” α͹ǡʹͲǡͲͲͲΪͳǡʹͲǡͲͲͲΪͳǡͲͲǡͲͲͲαͻǡͶͲǡͲͲͲ̷ͳʹΨαͳǡͳʹǡͺͲͲ
 ’Ž‘›‡”ǯ•…‘–”‹„—–‹‘αͳͳǡͲͲͲšͳʹαͳǡ͵ʹǡͲͲͲ
 ͳǡ͵ʹǡͲͲͲȂͳǡͳʹǡͺͲͲαͳͻǡʹͲͲ



2012 CIT v. Shankar Krishnan Bombay High Court

Issue: Can notional interest on security deposit given to the landlord in respect of residential premises
–ƒ‡‘”‡–„›–Š‡‡’Ž‘›‡”ƒ†’”‘˜‹†‡†–‘–Š‡‡’Ž‘›‡‡ǡ„‡‹…Ž—†‡†‹–Š‡’‡”“—‹•‹–‡˜ƒŽ—‡‘ˆ”‡–Ǧ
free accommodation given to the employee?
Fact of the Case:Š‡–ƒš’ƒ›‡”™ƒ•’”‘˜‹†‡†™‹–Š”‡–ˆ”‡‡ƒ……‘‘†ƒ–‹‘ˆƒ…‹Ž‹–›„›Š‹•‡’Ž‘›‡”™Š‹…Š™ƒ•
–ƒš‡†ƒ•’‡”“—‹•‹–‡•‹Š‹•Šƒ†•ǤŠ‡”‡–—”‘ˆ‹…‘‡ϐ‹Ž‡†„›–Š‡–ƒš’ƒ›‡”–ƒ‡—’ˆ‘”•…”—–‹›ǤŠ‡ƒ••‡••‹‰
‘ˆϐ‹…‡” ƒ••‡••‡† –Š‡ ‹…‘‡ ™‹–Š ƒ ƒ††‹–‹‘ ˆ‘” ‘–‹‘ƒŽ ‹–‡”‡•– ̷ ͳʹΨ ‘ •‡…—”‹–› †‡’‘•‹– ’ƒ‹† „› –Š‡
‡’Ž‘›‡”–‘–Š‡Žƒ†Ž‘”†‹”‡•’‡…–‘ˆ–Š‡ƒ……‘‘†ƒ–‹‘’”‘˜‹†‡†–‘–Š‡–ƒš’ƒ›‡”Ǥ
ƒƒ’’‡ƒŽ„›–Š‡–ƒš’ƒ›‡”ǡ–Š‡ȋƒ’’‡ƒŽȌ—’Š‡Ž†–Š‡‘”†‡”‘ˆƒ••‡••‹‰‘ˆϐ‹…‡”Ǥ‰‰”‹‡˜‡†„›–Š‡ȋƒ’’‡ƒŽȌ
Ǯ•‘”†‡”ǡ–Š‡–ƒš’ƒ›‡”’”‡ˆ‡””‡†ƒƒ’’‡ƒŽ„‡ˆ‘”‡–Š‡–”‹„—ƒŽ–Šƒ–•—…Š‘–‹‘ƒŽ‹–‡”‡•–™‘—Ž†‘–„‡–ƒšƒ„Ž‡Ǥ
Judgement:ƒ’’‡ƒŽ„›–Š‡‡˜‡—‡ǡ–Š‡‘„ƒ›‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡••‡••‹‰ˆϐ‹…‡”‹•‘–”‹‰Š–‹
ƒ††‹‰ –Š‡ ‘–‹‘ƒŽ ‹–‡”‡•– ‘ –Š‡ •‡…—”‹–› †‡’‘•‹– ‰‹˜‡ „› –Š‡ ‡’Ž‘›‡” –‘ –Š‡ Žƒ†Ž‘”† ‹ ˜ƒŽ—‹‰ –Š‡
’‡”“—‹•‹–‡‘ˆ”‡–Ǧˆ”‡‡ƒ……‘‘†ƒ–‹‘ǡ•‹…‡–Š‡’‡”“—‹•‹–‡˜ƒŽ—‡Šƒ•–‘„‡…‘’—–‡†ƒ•’‡”—Ž‡͵ƒ†—Ž‡͵
†‘‡•‘–”‡“—‹”‡ƒ††‹–‹‘‘ˆ•—…Š‘–‹‘ƒŽ‹–‡”‡•–ǤŠ—•ǡ–Š‡’‡”“—‹•‹–‡˜ƒŽ—‡‘ˆ–Š‡”‡•‹†‡–‹ƒŽƒ……‘‘†ƒ–‹‘
’”‘˜‹†‡†„›–Š‡‡’Ž‘›‡”™‘—Ž†„‡–Š‡ƒ…–—ƒŽƒ‘—–‘ˆŽ‡ƒ•‡”‡–ƒŽ’ƒ‹†‘”’ƒ›ƒ„Ž‡„›–Š‡‡’Ž‘›‡”ǡ•‹…‡–Š‡
•ƒ‡™ƒ•Ž‘™‡”–ŠƒͳͲΨȋ‘™ͳͷΨȌ‘ˆ•ƒŽƒ”›Ǥ

2011 CIT (TDS) v. Director, Delhi Public School Punjab and Haryana High Court
Can the limit of INR 1,000 per month per child be allowed as standard deduction, while computing the
’‡”“—‹•‹–‡˜ƒŽ—‡‘ˆˆ”‡‡‘”…‘…‡••‹‘ƒŽ‡†—…ƒ–‹‘ˆƒ…‹Ž‹–›’”‘˜‹†‡†–‘–Š‡‡’Ž‘›‡‡„›–Š‡‡’Ž‘›‡”ǫ
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 153

Fact of the Case:Š‡ƒ••‡••‡‡‹•”—‹‰ƒ’—„Ž‹…•…Š‘‘Žƒ†™ƒ•Ž‹ƒ„Ž‡–‘†‡†—…––ƒšƒ–•‘—”…‡ˆ”‘•ƒŽƒ”›ƒ†

”‡—‡”ƒ–‹‘’ƒ‹†–‘‹–•–‡ƒ…Š‹‰•–ƒˆˆǤŠ‡’‡”•‘”‡•’‘•‹„Ž‡ȋ–Š‡ƒ••‡••‡‡Š‡”‡‹Ȍ‹•–Š‡†‹”‡…–‘”‘ˆ–Š‡…Š‘‘Ž
™Š‘ϐ‹Ž‡†–Š‡”‡–—”‘ˆ•ƒŽƒ”‹‡•‘ʹͺǤͳͳǤʹͲͲ͵Ǥ––Š‡–‹‡‘ˆ…Š‡…‹‰‘ˆ ‘”ͳʹƒ‡š‡†ƒŽ‘‰™‹–Š ‘”
‘Ǥͳ͸ ”‡Žƒ–‹‰ –‘ ˜ƒ”‹‘—• ‡’Ž‘›‡‡•ǡ ‹– ™ƒ• ˆ‘—† –Šƒ– –Š‡ ƒ••‡••‡‡ Šƒ† „‡‡ ’”‘˜‹†‹‰ ˆ”‡‡Ȁ…‘…‡••‹‘ƒŽ
‡†—…ƒ–‹‘ƒŽˆƒ…‹Ž‹–‹‡•–‘–Š‡™ƒ”†•‘ˆ–‡ƒ…Š‡”•ƒ†‘–Š‡”•–ƒˆˆ‡„‡”•‘ˆ–Š‡•…Š‘‘ŽǤ‘™‡˜‡”ǡ™Š‹Ž‡…ƒŽ…—Žƒ–‹‰
–Š‡ ƒ‘—– ‘ˆ ’‡”“—‹•‹–‡ –ƒšƒ„Ž‡ ‹ –Š‡ Šƒ†• ‘ˆ –‡ƒ…Š‡”•Ȁ•–ƒˆˆ “—ƒ ˆ”‡‡Ȁ…‘…‡••‹‘ƒŽ ‡†—…ƒ–‹‘ƒŽ ˆƒ…‹Ž‹–‹‡•
’”‘˜‹†‡†–‘–Š‡‹”™ƒ”†•ǡ–Š‡ƒ••‡••‡‡Šƒ†„‡‡ƒŽŽ‘™‹‰ƒ†‡†—…–‹‘‘ˆ•ǤͳͲͲͲȀǦ’‡”‘–Š’‡”…Š‹Ž†ˆ”‘–Š‡
–‘–ƒŽƒ‘—–‘ˆ‡†—…ƒ–‹‘ƒŽˆƒ…‹Ž‹–‹‡•’”‘˜‹†‡†ˆ”‡‡‘ˆ…‘•––‘–Š‡ǤŠ‡••‡••‹‰ˆϐ‹…‡”Š‡Ž†–Šƒ––Š‡ƒ••‡••‡‡
Šƒ† ™”‘‰Ž› ƒŽŽ‘™‡† ƒ †‡†—…–‹‘ ‘ˆ •ǤͳͲͲͲȀǦ ’‡” ‘–Š ’‡” …Š‹Ž† ™Š‹Ž‡ …ƒŽ…—Žƒ–‹‰ –Š‡ ƒ‘—– ‘ˆ –ƒšƒ„Ž‡
’‡”“—‹•‹–‡ƒ†ƒ††‡†ƒƒ‘—–‘ˆ•ǤͳʹǡͲͲͲȀǦ’‡”ƒ—’‡”…Š‹Ž†–‘–Š‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡•‘ƒ……‘—–‘ˆ
ˆ”‡‡ ‡†—…ƒ–‹‘ƒŽ ˆƒ…‹Ž‹–‹‡• ’”‘˜‹†‡† –‘ –Š‡ ™ƒ”†• ‘ˆ –Š‡ ‡’Ž‘›‡‡•Ȁ•–ƒˆˆ ‘ˆ –Š‡ •…Š‘‘Ž ƒ† …ƒŽ…—Žƒ–‡† •Š‘”–
†‡†—…–‹‘–‘–Šƒ–‡š–‡–ƒ†–”‡ƒ–‡†–Š‡ƒ••‡••‡‡–‘„‡‹†‡ˆƒ—Ž–ǤŠ‡••‡••‹‰ˆϐ‹…‡”ƒŽ•‘…Šƒ”‰‡†‹–‡”‡•–Ǥ
……‘”†‹‰Ž›ǡ†—”‹‰–Š‡ƒ••‡••‡–›‡ƒ”ʹͲͲ͵ǦͲͶǡ–Š‡†‡ƒ†™ƒ•”ƒ‹•‡†ƒ–•Ǥ͵ǡͻ͵ǡͷͺ͸ȀǦȋ‹Ǥ‡Ǥ•Š‘”–†‡†—…–‹‘
‘ˆ–ƒšƒ–•Ǥʹǡͻ͹ǡ͸Ͳ͸ȀǦ’Ž—••ǤͻͷǡͻͺͲȀǦƒ•‹–‡”‡•–ȌǤ
Judgement: Š‡—Œƒ„ƒ†ƒ”›ƒƒ‹‰Š‘—”–Š‡Ž†–Šƒ–‘ƒ’Žƒ‹”‡ƒ†‹‰‘ˆ—Ž‡͵ȋͷȌǡ‹–ϐŽ‘™•–Šƒ–ǡ‹…ƒ•‡
–Š‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡ˆ‘”ˆ”‡‡Ȁ…‘…‡••‹‘ƒŽ‡†—…ƒ–‹‘ƒŽˆƒ…‹Ž‹–›ƒ”‹•‹‰–‘ƒ‡’Ž‘›‡‡‡š…‡‡†••ǤͳǡͲͲͲ’‡”
‘–Š’‡”…Š‹Ž†ǡ–Š‡™Š‘Ž‡’‡”“—‹•‹–‡•ŠƒŽŽ„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡ƒ†‘•–ƒ†ƒ”††‡†—…–‹‘
‘ˆͳǡͲͲͲ’‡”‘–Š’‡”…Š‹Ž†…ƒ„‡’”‘˜‹†‡†ˆ”‘–Š‡•ƒ‡Ǥ–‹•‘Ž›‹…ƒ•‡–Š‡’‡”“—‹•‹–‡˜ƒŽ—‡‹•Ž‡••
–ŠƒͳǡͲͲͲ’‡”‘–Š’‡”…Š‹Ž†ǡ–Š‡’‡”“—‹•‹–‡˜ƒŽ—‡•ŠƒŽŽ„‡‹ŽǤŠ‡”‡ˆ‘”‡ǡͳǡͲͲͲ’‡”‘–Š’‡”…Š‹Ž†
‹•‘–ƒ•–ƒ†ƒ”††‡†—…–‹‘–‘„‡’”‘˜‹†‡†™Š‹Ž‡…ƒŽ…—Žƒ–‹‰•—…Šƒ’‡”“—‹•‹–‡Ǥ

2018 Sun Outsourcing Solution (P.) Ltd v. CIT Ƭ‹‰Š‘—”–

Š‡”‡Ž—’•—’ƒ›‡–ƒ†‡–‘†‡’—–‡†‡’Ž‘›‡‡™ƒ•„›™ƒ›‘ˆ…‘ˆ‡””‹‰ƒ††‹–‹‘ƒŽƒ†˜ƒ–ƒ‰‡‹
order to make them to meet high cost towards accommodation and other personal expenditure, same
™‘—Ž†ˆƒŽŽ™‹–Š‹†‡ϐ‹‹–‹‘‘ˆ’‡”“—‹•‹–‡—†‡”•‡…–‹‘ͳ͹ȋʹȌ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
Fact of the Case:Š‡ƒ••‡••‡‡™ƒ•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ•‘ˆ–™ƒ”‡†‡˜‡Ž‘’‡–ǡ™‹–Š‘ˆϐ‹…‡ƒ–›†‡”ƒ„ƒ†
ƒ†„”ƒ…Š‘ˆϐ‹…‡ƒ–‘†‘ǤǤǤ–Š‡…‘—”•‡‘ˆ‡š‡…—–‹‘‘ˆ•‘ˆ–™ƒ”‡’”‘Œ‡…–•‹–Š‡ǡ–Š‡ƒ••‡••‡‡Šƒ†
†‡’—–‡† •‘‡ Ž‘…ƒŽ ’‡”•‘• ‘ˆ ›†‡”ƒ„ƒ† –‘ ‘†‘ –‘ ™‘” ‹ ‹–• „”ƒ…Š ‘ˆϐ‹…‡ ƒ† ƒŽ•‘ ‡’Ž‘›‡† Ž‘…ƒŽ
’‡”•‘‡Žȋ•Ȍ‹ǤǤ–Š‡ƒ••‡••‡‡†‹†‘–†‡†—…––ƒš‘ƒŽŽ‘™ƒ…‡•’ƒ‹†–‘–Š‡•–ƒˆˆ†‡’—–‡†–‘ǤǤƒ†–Š‡
•ƒŽƒ”›’ƒ›‡–•ƒ†‡–‘–Š‡Ž‘…ƒŽ’‡”•‘‡Ž‡‰ƒ‰‡†‹Ǥ
Judgement:–Šƒ•„‡‡Š‡Ž†–Šƒ––Šƒ–‹–™ƒ•‘–†‘—„–ˆ—Ž–Šƒ––Š‡Ž—’•—’ƒ›‡–ƒ†‡–‘–Š‡‡’Ž‘›‡‡•
™ƒ• „› ™ƒ› ‘ˆ …‘ˆ‡””‹‰ ƒ††‹–‹‘ƒŽ ƒ†˜ƒ–ƒ‰‡ ‹ ‘”†‡” –‘ ƒ‡ –Š‡ –‘ ‡‡– –Š‡ Š‹‰Š …‘•– –‘™ƒ”†•
ƒ……‘‘†ƒ–‹‘ƒ†‘–Š‡”’‡”•‘ƒŽ‡š’‡†‹–—”‡Ǥ—…Š‡š’‡†‹–—”‡…‘—Ž†‘–„‡–”‡ƒ–‡†ƒ•Šƒ˜‹‰„‡‡‹…—””‡†
‹…‘‡…–‹‘™‹–Š†‹•…Šƒ”‰‡‘ˆ–Š‡‹”†—–‹‡•™‹–Š‹–Š‡‡ƒ‹‰‘ˆ•‡…–‹‘ͳͲȋͳͶȌǤ —”–Š‡”ǡƒ•ˆ‘—†„›„‘–Š–Š‡
ˆ‘”ƒ„‡Ž‘™ǡ‡‹–Š‡”ƒ›„”‡ƒǦ—’‘ˆ–Š‡ƒ‘—–•’ƒ›ƒ„Ž‡–‘–Š‡‡’Ž‘›‡‡•‹ǤǤŠƒ†„‡‡‰‹˜‡‘”™ƒ•‹–
‡˜‹•ƒ‰‡† –Šƒ– –Š‡ ‡š’‡•‡• •‘ ‹…—””‡† ƒ”‡ ”‡‹„—”•ƒ„Ž‡Ǥ Š‡”‡ˆ‘”‡ǡ –Šƒ– ƒ‘—– ‹ †‹•’—–‡• ƒ––”ƒ…–‡† –Š‡
†‡ϐ‹‹–‹‘‘ˆ’‡”“—‹•‹–‡‹•‡…–‹‘ͳ͹ȋʹȌƒ†–Š‡›†‹†‘–ˆƒŽŽ™‹–Š‹–Š‡‡š…‡’–‹‘‘ˆ•‡…–‹‘ͳͲȋͳͶȌǤ



Ȉ ƒ•‹•‘ˆŠƒ”‰‡ǣ•’‡”•‡…–‹‘ͳͷǡ•ƒŽƒ”›‹•–ƒšƒ„Ž‡‘†—‡‘””‡…‡‹’–„ƒ•‹•™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ†‡”
‡…–‹‘ͳͷ–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡–ƒš—†‡”–Š‡Š‡ƒ†•ƒŽƒ”‹‡•™‘—Ž†‹…Ž—†‡ƒ›•ƒŽƒ”›†—‡–‘
ƒ‡’Ž‘›‡‡ˆ”‘ƒ‡’Ž‘›‡”‘”ƒˆ‘”‡”‡’Ž‘›‡”†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹””‡•’‡…–‹˜‡‘ˆ–Š‡ˆƒ…–
™Š‡–Š‡”‹–‹•’ƒ‹†‘”‘–Ǥ
Ȉ ‹ˆˆ‡”‡–ˆ‘”•‘ˆ•ƒŽƒ”›ǣ
ȋȌ ƒ•‹…ƒŽƒ”›ǣƒ•‹…•ƒŽƒ”›‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆƒ‡’Ž‘›‡‡Ǥ
154 Lesson 4 Ȉ EP-TL

ȋȌ ŽŽ‘™ƒ…‡ǣƒŽŽ‘™ƒ…‡‹•†‡ϐ‹‡†ƒ•ƒϐ‹š‡†ƒ‘—–‘ˆ‘‡›‰‹˜‡’‡”‹‘†‹…ƒŽŽ›‹ƒ††‹–‹‘–‘–Š‡
•ƒŽƒ”›ˆ‘”–Š‡’—”’‘•‡‘ˆ‡‡–‹‰•‘‡•’‡…‹ϐ‹…”‡“—‹”‡‡–•…‘‡…–‡†™‹–Š–Š‡•‡”˜‹…‡”‡†‡”‡†
„› –Š‡ ‡’Ž‘›‡‡ ‘” „› ™ƒ› ‘ˆ …‘’‡•ƒ–‹‘ ˆ‘” •‘‡ ——•—ƒŽ …‘†‹–‹‘• ‘ˆ ‡’Ž‘›‡–Ǥ – ‹•
–ƒšƒ„Ž‡‘†—‡Ȁƒ……”—‡†„ƒ•‹•™Š‡–Š‡”‹–‹•’ƒ‹†‹ƒ††‹–‹‘–‘–Š‡•ƒŽƒ”›‘”‹Ž‹‡—–Š‡”‡‘Ǥ
ȋȌ ‡”“—‹•‹–‡•ǣŠ‡–‡”Dz’‡”“—‹•‹–‡•dz‹…Ž—†‡•ƒŽŽ„‡‡ϐ‹–•ƒ†ƒ‡‹–‹‡•’”‘˜‹†‡†„›–Š‡‡’Ž‘›‡”
–‘–Š‡‡’Ž‘›‡‡‹ƒ††‹–‹‘–‘•ƒŽƒ”›ƒ†™ƒ‰‡•‡‹–Š‡”‹…ƒ•Š‘”‹‹†™Š‹…Šƒ”‡…‘˜‡”–‹„Ž‡‹–‘
‘‡›ǤŠ‡•‡„‡‡ϐ‹–•‘”ƒ‡‹–‹‡•ƒ›„‡’”‘˜‹†‡†‡‹–Š‡”˜‘Ž—–ƒ”‹Ž›‘”—†‡”•‡”˜‹…‡…‘–”ƒ…–Ǥ
‘”‹…‘‡Ǧ–ƒš’—”’‘•‡•ǡ–Š‡’‡”“—‹•‹–‡•ƒ”‡‘ˆ–Š”‡‡–›’‡•ǣ
ȋ‹Ȍ ƒšǦˆ”‡‡’‡”“—‹•‹–‡•
ȋ‹‹Ȍ ƒšƒ„Ž‡’‡”“—‹•‹–‡•
ȋ‹‹‹Ȍ ‡”“—‹•‹–‡•–ƒšƒ„Ž‡—†‡”•’‡…‹ϐ‹‡†…ƒ•‡•Ǥ
Ȉ ƒŽ—ƒ–‹‘‘ˆ’‡”“—‹•‹–‡•ǣŠ‡„ƒ•‹…’”‹…‹’Ž‡•‰‘˜‡”‹‰˜ƒŽ—ƒ–‹‘‘ˆ’‡”“—‹•‹–‡•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ
Ȉ Š‡˜ƒŽ—ƒ–‹‘‹•†‘‡‘–Š‡„ƒ•‹•‘ˆ–Š‡‹”˜ƒŽ—‡–‘–Š‡‡’Ž‘›‡‡ƒ†‘––Š‡‡’Ž‘›‡”ǯ•…‘•–ˆ‘”’”‘˜‹†‹‰
–Š‡•ƒ‡Ǧ‹Ž‹•˜Ǥ‘‰‡”•‘ȋͳͻ͸͵ȌͶͻ͵ͻͷȋȌǤ
Ȉ Š‡˜ƒŽ—‡‘ˆ’‡”“—‹•‹–‡‹•‹…Ž—†‡†‹–Š‡•ƒŽƒ”›‹…‘‡‘Ž›‹ˆ–Š‡’‡”“—‹•‹–‡‹•ƒ…–—ƒŽŽ›’”‘˜‹†‡†–‘–Š‡
‡’Ž‘›‡‡Ǥ
Ȉ ‡”“—‹•‹–‡™Š‹…Š‹•‘–ƒ…–—ƒŽŽ›‡Œ‘›‡†„›–Š‡‡’Ž‘›‡‡ȋ–Š‘—‰Š–Š‡–‡”•‘ˆ‡’Ž‘›‡–’”‘˜‹†‡ˆ‘”
–Š‡•ƒ‡Ȍ…ƒ‘–„‡˜ƒŽ—‡†ƒ†–ƒš‡†‹–Š‡‡’Ž‘›‡‡ǯ•Šƒ†•ǤŠ‡”‡ˆ‘”‡ǡ™Š‡”‡–Š‡‡’Ž‘›‡‡™ƒ‹˜‡•Š‹•
”‹‰Š–‘ˆ’‡”“—‹•‹–‡ǡŠ‡…ƒ‘–„‡–ƒš‡†–Š‡”‡‘Ǥ
Ȉ ŽŽ‘™ƒ„Ž‡†‡†—…–‹‘•—†‡”–Š‡Š‡ƒ†ƒŽƒ”‹‡•ǣŠ‡ˆ‘ŽŽ‘™‹‰ƒ‘—–••ŠƒŽŽ„‡†‡†—…–‡†‹‘”†‡”–‘ƒ””‹˜‡
ƒ––Š‡…Šƒ”‰‡ƒ„Ž‡‹…‘‡—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dzǤ
ȋȌ –ƒ†ƒ”††‡†—…–‹‘ǣ•ǤͷͲǡͲͲͲ‘”•ƒŽƒ”›™Š‹…Š‡˜‡”‹•Ž‡••Ǥ
ȋȌ –‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡
ȋȌ ƒš‘‡’Ž‘›‡–‘””‘ˆ‡••‹‘ƒŽƒš
Ȉ ‡ƒ‹‰‘ˆƒŽƒ”›—†‡”˜ƒ”‹‘—•…‹”…—•–ƒ…‡•ǣ

Circumstance ‡ϐ‹‹–‹‘

”ƒ–—‹–›ȋ‘Ǧ
‘˜‡”‡–’Ž‘›‡‡•…‘˜‡”‡†„› ƒ•‹…Ϊ
ƒ›‡–‘ˆ
”ƒ–—‹–›…–ǡͳͻ͹ʹȌ

”ƒ–—‹–› ȋ‘Ǧ
‘˜‡”‡–   ’ Ž ‘ › ‡ ‡ •  ƒ•‹…Ϊȋ‹ˆ–‡”•‘ˆ‡’Ž‘›‡–•‘’”‘˜‹†‡Ȍ
…‘˜‡”‡†„›ƒ›‡–‘ˆ
”ƒ–—‹–›…–ǡͳͻ͹ʹȌ Ϊ‘‹••‹‘ƒ•ƒΨ‘ˆ—”‘˜‡”
‡ƒ˜‡ƒŽƒ”› ƒ•‹…Ϊȋ‹ˆ–‡”•‘ˆ‡’Ž‘›‡–•‘’”‘˜‹†‡Ȍ
Ϊ‘‹••‹‘ƒ•ƒΨ‘ˆ—”‘˜‡”
 ƒ•‹…Ϊȋ‹ˆ–‡”•‘ˆ‡’Ž‘›‡–•‘’”‘˜‹†‡Ȍ
Ϊ‘‹••‹‘ƒ•ƒΨ‘ˆ—”‘˜‡”
‡– ”‡‡……‘‘†ƒ–‹‘ ƒ•‹…Ϊȋˆ‘”‹‰’ƒ”–‘ˆ”‡–‹”‡‡–„‡‡ϐ‹–•Ȍ
Ϊ‘—•ΪƒŽŽƒšƒ„Ž‡ŽŽ‘™ƒ…‡•
Lesson 4 Ȉ Part I - Income under the Head “Salaries” 155



Multiple Choice Questions (MCQs)

ͳǤ Š‡ †‡ϐ‹‹–‹‘ ‘ˆ ƒŽƒ”› ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ …‘’—–‹‰ ‹…‘‡ —†‡” –Š‡ Š‡ƒ† DzƒŽƒ”‹‡•dz ‹• ƒ•‹… Ϊ
‡ƒ”‡••ŽŽ‘™ƒ…‡Ϊ‘‹••‹‘ƒ•ƒΨ‘ˆ—”‘˜‡”ǫ
ƒȌ Ž™ƒ›•
„Ȍ •‘‡…ƒ•‡•
…Ȍ Š‡†‡ϐ‹‹–‹‘‹•‹””‡Ž‡˜ƒ–
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ„Ȍ
ʹǤ ‘˜‡›ƒ…‡ŽŽ‘™ƒ…‡‹•‡š‡’––‘–Š‡‡š–‡–‘ˆ’‡”‘–Šǫ
ƒȌ ͺͲͲ
„Ȍ ͳ͸ͲͲ
…Ȍ ‹Ž
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ
͵Ǥ …‘—–‡† ’‡•‹‘ ‹• ƒŽ™ƒ›• –ƒšƒ„Ž‡ ‹””‡•’‡…–‹˜‡ ‘ˆ ™Š‡–Š‡” –Š‡ ƒ••‡••‡‡ ‹• ƒ ”‹˜ƒ–‡ ‡…–‘” ‘” ƒ
—„Ž‹…Ǧ‡…–‘”‡’Ž‘›‡‡ǫ
ƒȌ ‡•
„Ȍ ‡•ǡŽ‹‡…‘—–‡†’‡•‹‘
…Ȍ –†‡’‡†•‘™Š‡–Š‡”–Š‡’‡”•‘‹•‹”‡…‡‹’–‘ˆ
”ƒ–—‹–›
†Ȍ ƒŽ•‡
•™‡”ǣȋƒȌ
ͶǤ ‘”–Š‡’—”’‘•‡•‘ˆ–ƒšƒ„‹Ž‹–›‘ˆ‘—–‡†‡•‹‘ǡ–Š‹•‹•‹†‡’‡†‡–‘ˆ™Š‡–Š‡”›‘—Šƒ˜‡”‡…‡‹˜‡†

”ƒ–—‹–›‘”‘–ƒ•–Š‡•‡ƒ”‡ƒ›™ƒ›•–ƒš‡†•‡’ƒ”ƒ–‡Ž›ǫ
ȋƒȌ …‘””‡…–ǡ‹–†‡’‡†•‘™Š‡–Š‡”›‘—ƒ”‡ƒ
‘˜‡”‡–‡’Ž‘›‡‡‘”‘–
ȋ„Ȍ …‘””‡…–ǡ‹–†‡’‡†•‘™Š‡–Š‡”›‘—ƒ”‡‹”‡…‡‹’–‘ˆ
”ƒ–—‹–›
ȋ…Ȍ ‘–ŠƒƬ„
ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ
ͷǤ ‘Ǥ‘ˆ†ƒ›•‹ƒ‘–Šˆ‘”’—”’‘•‡•‘ˆ…‘’—–‹‰–ƒšƒ„Ž‡
”ƒ–—‹–›‹…ƒ•‡–Š‡‡’Ž‘›‡‡‹•…‘˜‡”‡†—†‡”
–Š‡ƒ›‡–‘ˆ
”ƒ–—‹–›…–ǡͳͻ͹ʹǡƒ”‡ǫ
ƒȌ ʹ͸
„Ȍ ʹͷ
…Ȍ ͵Ͳ
†Ȍ ͵ͳ
•™‡”ǣȋƒȌ
156 Lesson 4 Ȉ EP-TL

  



Ȉ ‹”‡…–ƒš‡•ƒ™ƒ†”ƒ…–‹…‡
Author:”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
Publisher:ƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
Author:”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
Publisher:‘Ž–‡”•

OTHER REFERENCES

Ȉ Income Tax Act, 1961 : Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š

Ȉ Income Tax Rules, 1962 : Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•ǦͷͿͼ͸Ǥƒ•’š
Ȉ Circulars : Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
 Part II – Income under the
Lesson 4 head House Property
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ ‘—•‡”‘’‡”–›
Ȉ Š‡…‘†‹–‹‘•–‘„‡
Ȉ
”‘••—ƒŽƒŽ—‡ •ƒ–‹•ϐ‹‡†ˆ‘”‹…‘‡–‘„‡ ‡…–‹‘ʹʹ
Ȉ ‡–—ƒŽƒŽ—‡ …Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†
Ȉ ”‡ƒŽ‹œ‡†‡– Š‘—•‡’”‘’‡”–›
Ȉ ””‡ƒ”‘ˆ‡– Ȉ ‘™–‘†‡–‡”‹‡–Š‡
ƒ—ƒŽ˜ƒŽ—‡‘ˆ†‹ˆˆ‡”‡–
Ȉ ‡ŽˆǦ……—’‹‡†
”‘’‡”–› –›’‡‘ˆŠ‘—•‡’”‘’‡”–‹‡•ǫ
Ȉ ‡‡‡†–‘„‡Ž‡– Ȉ †‹••‹„Ž‡†‡†—…–‹‘•ƒ†
‘—–”‘’‡”–› ‹ƒ†‹••‹„Ž‡†‡†—…–‹‘•
Ȉ ‘Ǧ‘™‡”•Š‹’ ˆ”‘ƒ—ƒŽ˜ƒŽ—‡
Ȉ ‡‡‡†™‡” Ȉ ƒš–”‡ƒ–‡–‘ˆ
—”‡ƒŽ‹œ‡†”‡–
Ȉ Š‘ƒ”‡†‡‡‡†‘™‡”•ǫ
Ȉ Šƒ–‹•‡ƒ–„›…‘Ǧ
Regulatory
Framework
Sections Income Tax Act, 1961
ƒ•‹•‘ˆŠƒ”‰‡
‡…–‹‘ʹ͵ȋͳȌ —ƒŽƒŽ—‡‘ˆ‘—•‡
”‘’‡”–›
‡…–‹‘ʹ͵ȋʹȌ —ƒŽƒŽ—‡™Š‡”‡
’”‘’‡”–›‹••‡ŽˆǦ
‘……—’‹‡†Ȁ—‘……—’‹‡†
‡…–‹‘ʹ͵ȋ͵Ȍ —ƒŽ ƒŽ—‡ ™Š‡”‡
–Š‡ ’”‘’‡”–› ‹• ’ƒ”–Ž›
Ž‡– ‘—– ƒ† ’ƒ”–Ž› •‡ŽˆǦ
‘……—’‹‡†
‡…–‹‘ʹ͵ȋͶȌ ‡‡‡†–‘„‡Ž‡–Ǧ‘—–
’”‘’‡”–›
‡…–‹‘ʹ͵ȋͷȌ ‘–‹‘ƒŽ ‹…‘‡ ˆ”‘
Š‘—•‡’”‘’‡”–›Š‡Ž†ƒ•
•–‘…‹–”ƒ†‡
‡…–‹‘ʹͶ ‡†—…–‹‘ˆ”‘‡–
—ƒŽƒŽ—‡
‡…–‹‘ʹͶȋƒȌ –ƒ†ƒ”†‡†—…–‹‘
‘™‡”•Š‹’ƒ†™Šƒ–‹•‹–• ‡…–‹‘ʹͶȋ„Ȍ –‡”‡•–‘„‘””‘™‡†
–ƒš–”‡ƒ–‡–‡–…Ǥǫ …ƒ’‹–ƒŽ
‡…–‹‘ʹͷ ƒ†‹••‹„Ž‡
‡†—…–‹‘•
‡…–‹‘ʹͷ ”‡ƒ–‡–‘ˆ
”‡ƒŽ‹œ‡†‡–Ȁ
””‡ƒ”‘ˆ‡–
‡…–‹‘ʹ͸ …‘‡ˆ”‘‘Ǧ
™‡†”‘’‡”–›
‡…–‹‘ʹ͹ ‡‡‡†™‡”•Š‹’

Lesson Outline
Ȉ ƒ•‹•‘ˆŠƒ”‰‡ Ȉ ”‘’‡”–‹‡•‘™‡†„›‘Ǧ
Ȉ ’ƒ…–‘ˆ‡…–‹‘ͳͳͷ ‘™‡”•
—†‡”–Š‡Š‡ƒ†‘—•‡ Ȉ ‡‡‡†™‡”•Š‹’
”‘’‡”–› Ȉ ‘—•‡”‘’‡”–›…‘‡
Ȉ ‡–‡”‹ƒ–‹‘‘ˆ—ƒŽ š‡’–ˆ”‘ƒš
ƒŽ—‡ Ȉ 
Ȉ ‡†—…–‹‘•ˆ”‘‡–—ƒŽ Ȉ ǧ
ƒŽ—‡
Ȉ 
Ȉ ƒ†‹••‹„Ž‡†‡†—…–‹‘•
Ȉ   
Ȉ ”‡ƒ–‡–‘ˆ—”‡ƒŽ‹œ‡† 

”‡–Ȁ””‡ƒ”‘ˆ”‡–
Ȉ  
 158 Lesson 4 Ȉ EP-TL

BASIS OF CHARGE [SECTION 22]

Š‡annual value ‘ˆ’”‘’‡”–›…‘•‹•–‹‰‘ˆƒ›buildings or lands appurtenant thereto ‘ˆ™Š‹…Š–Š‡ƒ••‡••‡‡
‹•–Š‡owner, ‘–Š‡”–Šƒ•—…Š’‘”–‹‘•‘ˆ•—…Š’”‘’‡”–›ƒ•Š‡ƒ›‘……—’›for the purposes of any business or
profession carried on by him, –Š‡’”‘ϐ‹–•‘ˆ™Š‹…Šƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšǡ•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ
–ƒš—†‡”–Š‡Š‡ƒ†…‘‡ˆ”‘‘—•‡”‘’‡”–›Ǥ
‘–Š‡”™‘”†•ƒŠ‘—•‡’”‘’‡”–›‹•–ƒšƒ„Ž‡—†‡”–Š‹•Š‡ƒ†‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣǦ
ͳǤ Š‡”‡•Š‘—Ž†„‡ƒ’”‘’‡”–›…‘•‹•–‹‰‘ˆƒ›„—‹Ž†‹‰•‘”Žƒ†•ƒ’’—”–‡ƒ––Š‡”‡–‘Ǣ
ʹǤ ••‡••‡‡•Š‘—Ž†„‡–Š‡‘™‡”‘ˆ•—…Š’”‘’‡”–›ȋ‹…Ž—†‹‰†‡‡‡†‘™‡”ƒ•‰‹˜‡—Ȁ•ʹ͹Ȍ
͵Ǥ —…Š’”‘’‡”–›•Š‘—Ž†‘–„‡‘……—’‹‡†„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡•‘ˆƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†
‘„›Š‹ǡ–Š‡’”‘ϐ‹–•‘ˆ™Š‹…Šƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡–ƒšǤ
…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›‹•‘‡‘ˆ–Š‡‹’‘”–ƒ–Š‡ƒ†•‘ˆ‹…‘‡—†‡”–Š‡…‘‡ƒš…–ǤŠ‡–ƒš’ƒ›‡”•Šƒ˜‡
„‡‡ǡ‹’ƒ”–‹…—Žƒ”ǡ‡‡–‘‘™ƒ„‘—––Š‡‡š‡’–‹‘•ƒ††‡†—…–‹‘•ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡‘”‡’ƒ›‡–‘ˆ‹–‡”‡•–
ƒ†’”‹…‹’ƒŽ‘ˆ–Š‡Ž‘ƒ‘„–ƒ‹‡†–‘’—”…Šƒ•‡–Š‡Š‘—•‡’”‘’‡”–›ǡ‹ˆ–Šƒ–Š‘—•‡’”‘’‡”–›‹•Ž‡–‘—–‘”•‡ŽˆǦ‘……—’‹‡†Ǥ
Š‡ƒ‘—–‘ˆ‹–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ‘ˆ–Š‡…—””‡–›‡ƒ”‹•ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡Š‡ƒ†Š‘—•‡’”‘’‡”–›ˆ—”–Š‡”
”‡’ƒ›‡–‘ˆ’”‹…‹’ƒŽ‹•ƒ˜ƒ‹Žƒ„Ž‡—†‡”•‡…–‹‘ͺͲ–‘‹†‹˜‹†—ƒŽ•ƒ†‹†—†‹˜‹†‡† ƒ‹Ž‹‡•Ǥ
Š‡ƒ—ƒŽ˜ƒŽ—‡ȋȌ‘ˆ–Š‡’”‘’‡”–›‘ˆ™Š‹…Š–Š‡ƒ••‡••‡‡‹•–Š‡‘™‡”‹•…Šƒ”‰‡ƒ„Ž‡–‘…‘‡ƒšǡ—†‡”–Š‡
Š‡ƒ†DzŠ‘—•‡’”‘’‡”–›dzǤ–‹•‹’‡”ƒ–‹˜‡–‘‘–‡–Š‘—‰Šǡ–Šƒ––Š‡’—”’‘•‡‘ˆ‘……—’ƒ–‹‘‹•ƒŽ•‘ƒ†‡–‡”‹ƒ–ǡˆ‘”
‡šƒ’Ž‡ǡƒ’”‘’‡”–›–Šƒ–‹•‘……—’‹‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ„—•‹‡••Ȁ’”‘ˆ‡••‹‘…ƒ””‹‡†‘„›Š‹‹•‘–…Šƒ”‰‡ƒ„Ž‡
—†‡”Dz…‘‡ˆ”‘‘—•‡”‘’‡”–›dzǡ™Š‹…Š†‡ƒŽ•™‹–Š•‡ŽˆǦ‘……—’‹‡†‘”Ž‡–‘—–’”‘’‡”–‹‡•ˆ‘””‡•‹†‡–‹ƒŽ—•‡Ǥ

Ȉ ‹…‘‡ˆ”‘Ž‡––‹‰‘—–ƒ˜ƒ…ƒ–Žƒ†‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”
–Š‡Š‡ƒ†“Income From Other Sources”
Exceptions Ȉ …‘‡‡ƒ”‡†„›ƒƒ••‡••‡‡™Š‘‹•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ
Ž‡––‹‰‘—–’”‘’‡”–‹‡•‘”‡–ǡ™‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”
–Š‡Š‡ƒ†Dz”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dz

IMPACT OF SECTION 115BAC UNDER THE HEAD HOUSE PROPERTY

‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”†‹˜‹†—ƒŽ•ƒ† •—Ȁ•ͳͳͷ‘ˆ–Š‡…‘‡
ƒš…–ǡͳͻ͸ͳ™Ǥ‡ǤˆǤȀʹͳǦʹʹ–‘’”‘˜‹†‡ˆ‘”…‘…‡••‹‘ƒŽ”ƒ–‡‘ˆŽƒ„ƒ–‡•–‘„‡ƒ’’Ž‹‡†‘‘–ƒŽ…‘‡…ƒŽ…—Žƒ–‡†
™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ
‡…‡ǡˆ”‘ʹͲʹͳǦʹʹ‘” ʹͲʹͲǦʹͳǡ–Š‡”‡ƒ”‡–™‘‘’‡”ƒ–‹˜‡–ƒš•›•–‡•Ȃ
ͳǤ ‡‹•–Š‡š‹•–‹‰–ƒš•›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš
”ƒ–‡•ƒ”‡ƒ•’‡”–Š‡Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
ʹǤ Š‡•‡…‘†‘‡‹••‡…–‹‘ͳͳͷ™Š‹…Š‹•ƒ’–‹‘ƒŽƒš›•–‡ƒ†—†‡”™Š‹…Šƒ›†‡†—…–‹‘•ƒ†
‡š‡’–‹‘•Šƒ˜‡‘–„‡‡ƒŽŽ‘™‡†„—–Ž‘™‡”•Žƒ„–ƒš”ƒ–‡•ƒ”‡’”‘˜‹†‡†‹–Š‡•‡…–‹‘ͳͳͷ‹–•‡ŽˆǤ
Individual and HUF opting for connectional tax regime under section 115BAC: Š‡†‡†—…–‹‘—†‡”Šƒ’–‡”
Ǧ‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͺͲ‘”•‡…–‹‘ͺͲ Ǣ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡†‹˜‹†—ƒŽ
ƒ† ‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ
ƒ›‡š‡’–‹‘•Ƭ†‡†—…–‹‘•ƒ”‡‘–ƒŽŽ‘™‡†—†‡”–Š‡‡™–ƒš•›•–‡ǤŠ‡„‡Ž‘™…Šƒ”–…‘–ƒ‹•–Š‡‡š‡’–‹‘•
ƒ††‡†—…–‹‘•‘–ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡‡™•›•–‡”‡Žƒ–‡†–‘…‘‡—†‡”–Š‡Š‡ƒ†Š‘—•‡’”‘’‡”–›Ǥ‹‹Žƒ”Ž›ǡ
†‡†—…–‹‘•Ƭ‡š‡’–‹‘•‘–ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡‡™–ƒš•›•–‡ƒ†™Š‹…Šƒ”‡”‡Žƒ–‡†–‘‘–Š‡”Š‡ƒ†•ƒ”‡’”‘˜‹†‡†
‹‘–Š‡”…Šƒ’–‡”•Ǥ
 Lesson 4 Ȉ Part II – Income under the head House Property 159

Sr. ƒ–—”‡‘ˆš‡’–‹‘Ȁ‡†—…–‹‘‡Žƒ–‹‰–‘ ‡™›•–‡‘ˆƒš—Ȁ• Existing system of

No. House Property 115BAC Tax
ͳǤ ‡†—…–‹‘‘ˆ—‹…‹’ƒŽ–ƒšˆ”‘
 ŽŽ‘™‡† ŽŽ‘™‡†
ʹǤ –ƒ†ƒ”†‡†—…–‹‘—Ȁ•ʹͶȋƒȌˆ”‘ ŽŽ‘™‡† ŽŽ‘™‡†
͵Ǥ –‡”‡•–‡†—…–‹‘—Ȁ•ʹͶȋ„Ȍˆ”‘
ȋƒȌ‡–‘—–’”‘’‡”–‹‡•—Ȁ•ʹ͵ȋͳȌ ŽŽ‘™‡† ŽŽ‘™‡†
ȋ„Ȍ‡Žˆ”‡•‹†‡–‹ƒŽ”‘’‡”–›—Ȁ•ʹ͵ȋʹȌ ‘–ŽŽ‘™‡† ŽŽ‘™‡†
ȋ…Ȍ”‘’‡”–›™Š‹…Š‹••–‘…‹–”ƒ†‡—Ȁ•ʹ͵ȋͷȌ ŽŽ‘™‡† ŽŽ‘™‡†
ͶǤ ‡– ‘ˆˆ ‘ˆ „”‘—‰Š– ˆ‘”™ƒ”† ‘—•‡ ”‘’‡”–› Ž‘••‡• ‘–ŽŽ‘™‡†‹ˆ”‡Žƒ–‡†–‘ ŽŽ‘™‡†
Ƭ„”‘—‰Š–ˆ‘”™ƒ”†‡’”‡…‹ƒ–‹‘ˆ”‘—””‡–›‡ƒ” †‹•ƒŽŽ‘™‡† †‡†—…–‹‘Ƭ
‘—•‡”‘’‡”–›…‘‡ ‡š‡’–‹‘•
ͷǤ ‡–‘ˆˆ…—””‡–›‡ƒ”‘—•‡”‘’‡”–›Ž‘••ˆ”‘‘–Š‡” ‘–ŽŽ‘™‡† ŽŽ‘™‡†
‡ƒ†•

DETERMINATION OF ANNUAL VALUE

Š‡’”‘…‡••‘ˆ†‡–‡”‹ƒ–‹‘‘ˆ—ƒŽƒŽ—‡‹•‡šŠ‹„‹–‡†„‡Ž‘™ǣ

Step 1: Step 2: Step 3:

•…‡”–ƒ‹–Š‡ ‡†—…‡ˆ”‘‹––Š‡ ””‹˜‡ƒ––Š‡‡–

”‘••ƒ—ƒŽ —‹…‹’ƒŽ–ƒš‡•’ƒ‹† —ƒŽƒŽ—‡
ƒŽ—‡ȋ
Ȍ „›–Š‡™‡”‹–Š‡ ȋȌ

Annual Value: Š‡‡ƒ•—”‡‘ˆ…Šƒ”‰‹‰‹…‘‡Ǧ–ƒš—†‡”–Š‹•Š‡ƒ†‹•–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›ǡ‹Ǥ‡Ǥǡ–Š‡

‹Š‡”‡–…ƒ’ƒ…‹–›‘ˆƒ„—‹Ž†‹‰–‘›‹‡Ž†‹…‘‡ǤŠ‡‡š’”‡••‹‘Ǯƒ—ƒŽ˜ƒŽ—‡ǯŠƒ•„‡‡†‡ϐ‹‡†‹‡…–‹‘ʹ͵ȋͳȌ‘ˆ
–Š‡…‘‡Ǧ–ƒš…–ƒ•ǣ
ȋͳȌ –Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆƒ›’”‘’‡”–›•ŠƒŽŽ„‡†‡‡‡†–‘„‡ǣ
ȋƒȌ –Š‡•—ˆ‘”™Š‹…Š–Š‡’”‘’‡”–›‹‰Š–”‡ƒ•‘ƒ„Ž›„‡‡š’‡…–‡†–‘„‡Ž‡–ˆ”‘›‡ƒ”–‘›‡ƒ”Ǣ‘”
ȋ„Ȍ ™Š‡”‡–Š‡’”‘’‡”–›‘”ƒ›’ƒ”–‘ˆ–Š‡’”‘’‡”–›‹•Ž‡–ƒ†–Š‡ƒ…–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›–Š‡
‘™‡”‹”‡•’‡…––Š‡”‡‘ˆ‹•‹‡š…‡••‘ˆ–Š‡•—”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ–Š‡ƒ‘—–•‘”‡…‡‹˜‡†‘”
”‡…‡‹˜ƒ„Ž‡Ǣ‘”
ȋ…Ȍ ™Š‡”‡–Š‡’”‘’‡”–›‘”ƒ›’ƒ”–‘ˆ–Š‡’”‘’‡”–›‹•Ž‡–ƒ†™ƒ•˜ƒ…ƒ–†—”‹‰–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ
–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†‘™‹‰–‘•—…Š˜ƒ…ƒ…›–Š‡ƒ…–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›–Š‡‘™‡”‹
”‡•’‡…––Š‡”‡‘ˆ‹•Ž‡••–Šƒ–Š‡•—”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ–Š‡ƒ‘—–•‘”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡Ǥ
 ”‘˜‹†‡†–Šƒ––Š‡–ƒš‡•Ž‡˜‹‡†„›ƒ›Ž‘…ƒŽƒ—–Š‘”‹–›‹”‡•’‡…–‘ˆ–Š‡’”‘’‡”–›•ŠƒŽŽ„‡†‡†—…–‡†ȋ‹””‡•’‡…–‹˜‡
‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡ Ž‹ƒ„‹Ž‹–› –‘ ’ƒ› •—…Š –ƒš‡• ™ƒ• ‹…—””‡† „› –Š‡ ‘™‡” ƒ……‘”†‹‰ –‘ –Š‡
‡–Š‘†‘ˆƒ……‘—–‹‰”‡‰—Žƒ”Ž›‡’Ž‘›‡†„›Š‹Ȍ‹†‡–‡”‹‹‰–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›‘ˆ–Šƒ–
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š–ƒš‡•ƒ”‡ƒ…–—ƒŽŽ›’ƒ‹†„›Š‹ǡ‹Ǥ‡Ǥǡ—‹…‹’ƒŽ–ƒš‡•™‹ŽŽ„‡ƒŽŽ‘™‡†‘Ž›‹–Š‡
›‡ƒ”‹™Š‹…Š‹–™ƒ•’ƒ‹†Ǥ
 160 Lesson 4 Ȉ EP-TL

Explanationǣ ‘” –Š‡ ’—”’‘•‡• ‘ˆ …Žƒ—•‡ ȋ„Ȍ ‘” …Žƒ—•‡ ȋ…Ȍ ‘ˆ –Š‹• •—„Ǧ•‡…–‹‘ǡ –Š‡ ƒ‘—– ‘ˆ ƒ…–—ƒŽ ”‡–
”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›–Š‡‘™‡”•ŠƒŽŽ‘–‹…Ž—†‡ǡ–Š‡ƒ‘—–‘ˆ—”‡ƒŽ‹œ‡†”‡–Ǥ
ȋʹȌ Š‡”‡–Š‡’”‘’‡”–›…‘•‹•–•‘ˆƒŠ‘—•‡‘”’ƒ”–‘ˆƒŠ‘—•‡Ǧ
ȋƒȌ ™Š‹…Š‹•‹–Š‡‘……—’ƒ–‹‘‘ˆ–Š‡‘™‡”ˆ‘”–Š‡’—”’‘•‡•‘ˆŠ‹•‘™”‡•‹†‡…‡Ǣ
ȋ„Ȍ ‘” …ƒ‘– ƒ…–—ƒŽŽ› „‡ ‘……—’‹‡† „› –Š‡ ‘™‡” „› ”‡ƒ•‘ ‘ˆ –Š‡ ˆƒ…– –Šƒ– ‘™‹‰ –‘ Š‹• ‡’Ž‘›‡–ǡ
„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘ƒ–ƒ›‘–Š‡”’Žƒ…‡ǡŠ‡Šƒ•–‘”‡•‹†‡ƒ––Šƒ–‘–Š‡”’Žƒ…‡‹ƒ„—‹Ž†‹‰
‘–„‡Ž‘‰‹‰–‘Š‹ǡ
–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ•—…ŠŠ‘—•‡‘”’ƒ”–‘ˆ–Š‡Š‘—•‡•ŠƒŽŽ„‡–ƒ‡–‘„‡‹ŽǤ
ȋ͵Ȍ ‘™‡˜‡”ǡ–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ‘–ƒ’’Ž›‹ˆǣ
ȋƒȌ –Š‡Š‘—•‡‘”’ƒ”–‘ˆ–Š‡Š‘—•‡‹•ƒ…–—ƒŽŽ›Ž‡–†—”‹‰–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ‘”
ȋ„Ȍ ƒ›‘–Š‡”„‡‡ϐ‹––Š‡”‡ˆ”‘‹•†‡”‹˜‡†„›–Š‡‘™‡”Ǥ
ȋͶȌ Š‡”‡–Š‡’”‘’‡”–›”‡ˆ‡””‡†–‘‹—„Ǧ•‡…–‹‘ȋʹȌ…‘•‹•–•‘ˆ‘”‡–Šƒ–™‘Š‘—•‡•ǣ
ȋƒȌ –Š‡’”‘˜‹•‹‘•‘ˆ–Šƒ–•—„Ǧ•‡…–‹‘•ŠƒŽŽƒ’’Ž›‘Ž›‹”‡•’‡…–‘ˆ–™‘‘ˆ•—…ŠŠ‘—•‡•ǡ™Š‹…Š–Š‡ƒ••‡••‡‡
ƒ›ǡƒ–Š‹•‘’–‹‘ǡ•’‡…‹ˆ›‹–Š‹•„‡ŠƒŽˆǢ
ȋ„Ȍ –Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡‘”Š‘—•‡•ǡ‘–Š‡”–Šƒ–Š‡Š‘—•‡‘”Š‘—•‡•‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡ƒ••‡••‡‡
Šƒ•‡š‡”…‹•‡†ƒ‘’–‹‘—†‡”…Žƒ—•‡ȋƒȌǡ•ŠƒŽŽ„‡†‡–‡”‹‡†—†‡”—„Ǧ•‡…–‹‘ȋͳȌƒ•‹ˆ•—…ŠŠ‘—•‡
‘”Š‘—•‡•Šƒ†„‡‡Ž‡–Ǥ
Unrealized Rent: Š‡ ƒ‘—– ‘ˆ ”‡– ™Š‹…Š –Š‡ ‘™‡” …ƒ‘– ”‡ƒŽ‹•‡ •ŠƒŽŽ „‡ ‡“—ƒŽ –‘ –Š‡ ƒ‘—– ‘ˆ ”‡–
’ƒ›ƒ„Ž‡ „—– ‘– ’ƒ‹† „› ƒ –‡ƒ– ‘ˆ –Š‡ ƒ••‡••‡‡ ƒ† •‘ ’”‘˜‡† –‘ „‡ Ž‘•– ƒ† ‹””‡˜‘…ƒ„Ž‡ ‘Ž› ‹ˆ ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•—†‡”Rule 4 ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ –‡ƒ…›‹•„‘ƒϔ‹†‡Ǣ
ȋ„Ȍ –Š‡†‡ˆƒ—Ž–‹‰–‡ƒ–Šƒ•˜ƒ…ƒ–‡†ǡ‘”•–‡’•Šƒ˜‡„‡‡–ƒ‡–‘…‘’‡ŽŠ‹–‘˜ƒ…ƒ–‡–Š‡’”‘’‡”–›Ǣ
ȋ…Ȍ –Š‡†‡ˆƒ—Ž–‹‰–‡ƒ–‹•‘–‹‘……—’ƒ–‹‘‘ˆƒ›‘–Š‡”’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡Ǣ
ȋ†Ȍ –Š‡ƒ••‡••‡‡Šƒ•–ƒ‡ƒŽŽ”‡ƒ•‘ƒ„Ž‡•–‡’•–‘‹•–‹–—–‡Ž‡‰ƒŽ’”‘…‡‡†‹‰•ˆ‘”–Š‡”‡…‘˜‡”›‘ˆ–Š‡—’ƒ‹†
”‡–‘”•ƒ–‹•ϐ‹‡†–Š‡••‡••‹‰ˆϐ‹…‡”–Šƒ–Ž‡‰ƒŽ’”‘…‡‡†‹‰•™‘—Ž†„‡—•‡Ž‡••Ǥ

Where the property is let out for the whole year [Section 23(1)]




  

 

ȋ…ƒ‘–‡š…‡‡†•–ƒ†ƒ”†”‡–Ȍ


  

 

Š‡
”‘••—ƒŽ˜ƒŽ—‡ȋ
Ȍ‹•–Š‡Š‹‰Š‡”‘ˆ
ƒȌ š’‡…–‡†‡–ȋȌƒ†
„Ȍ …–—ƒŽ‡–”‡…‡‹˜‡†Ȁ”‡…‡‹˜ƒ„Ž‡ȋȌ
 Lesson 4 Ȉ Part II – Income under the head House Property 161

Note:
Ȉ Š‡š’‡…–‡†‡–‹•–Š‡Š‹‰Š‡”‘ˆ ƒ‹”‡–ȋ Ȍƒ†–Š‡—‹…‹’ƒŽƒŽ—‡ȋȌǡ„—–…ƒ’’‡†–‘–ƒ†ƒ”†‡–ȋȌǤ
Ȉ ƒ‹”‡–‹•–Š‡”‡–ƒŽˆ‡–…Š‡†„›ƒ•‹‹Žƒ”’”‘’‡”–›‹–Š‡ƒ†Œ‘‹‹‰‡‹‰Š„‘—”Š‘‘†Ǥ
Ȉ –Š‡—‹…‹’ƒŽƒŽ—‡‹•–Š‡˜ƒŽ—‡†‡–‡”‹‡†„›–Š‡—‹…‹’ƒŽ—–Š‘”‹–‹‡•Ǥ
Ȉ –Š‡–ƒ†ƒ”†‡–‹•–Š‡”‡–ϐ‹š‡†„›–Š‡‡–‘–”‘Ž…–Ǥ
Municipal Taxes: Š‡–ƒš‡•‹…Ž—†‹‰•‡”˜‹…‡–ƒš‡•ȋϐ‹”‡–ƒšǡ…‘•‡”˜ƒ…›–ƒšǡ‡†—…ƒ–‹‘ǡ™ƒ–‡”–ƒšǡ‡–…ǤȌŽ‡˜‹‡†„›
ƒ›—‹…‹’ƒŽ‹–›‘”Ž‘…ƒŽƒ—–Š‘”‹–›‹”‡•’‡…–‘ˆƒ›Š‘—•‡’”‘’‡”–›–‘–Š‡‡š–‡––‘™Š‹…Š•—…Š–ƒš‡•ƒ”‡„‘”‡ƒ†
’ƒ‹†„›–Š‡‘™‡”ǡƒ†‹…Ž—†‡‡Šƒ…‡†—‹…‹’ƒŽ–ƒšϐ‹ƒŽŽ›†‡–‡”‹‡†‘ƒ’’‡ƒŽƒ†’ƒ›ƒ„Ž‡„›ƒ••‡••‡‡ǦŽ‹˜‡
—‹Ž†‹‰•‘Žƒ–†Ǥ˜ǤȋͳͻͺͻȌͶͶƒšƒͳ͸ͲǤ‘™‡˜‡”ǡ†‡†—…–‹‘‹”‡•’‡…–‘ˆ—‹…‹’ƒŽ–ƒš‡•™‹ŽŽ„‡ƒŽŽ‘™‡†‹
†‡–‡”‹‹‰–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›‘Ž›‹–Š‡›‡ƒ”‹™Š‹…Š—‹…‹’ƒŽ–ƒš‡•ƒ”‡ƒ…–—ƒŽŽ›’ƒ‹†„›–Š‡‘™‡”Ǥ
Š‡”‡–Š‡–ƒš‘’”‘’‡”–›‹•‡…Šƒ…‡†™‹–Š”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…–„›—‹…‹’ƒŽ‘”Ž‘…ƒŽƒ—–Š‘”‹–‹‡•ƒ†–Š‡‡Šƒ…‡†
–ƒš ”‡Žƒ–‹‰ –‘ –Š‡ ’”‹‘” ›‡ƒ” ‹• †‡ƒ†‡† †—”‹‰ –Š‡ ƒ••‡••‡– ›‡ƒ”ǡ –Š‡ ‡–‹”‡ †‡ƒ† ‹• †‡†—…–‹„Ž‡ ‹ –Š‡
ƒ••‡••‡–›‡ƒ”ȏǤǤǤ˜ǤǤ—’’—™ƒ›Š‡––‹ƒ”ȋͷͿ;ͷȌͷ͹͸ͺͷͼȋƒ†ǤȌȐǤ
˜‡™Š‡”‡–Š‡’”‘’‡”–›‹••‹–—ƒ–‡†‘—–•‹†‡–Š‡…‘—–”›–ƒš‡•Ž‡˜‹‡†„›Ž‘…ƒŽƒ—–Š‘”‹–›‹–Šƒ–…‘—–”›ƒ”‡†‡†—…–‹„Ž‡
‹†‡…‹†‹‰–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›Ǥȏ˜Ǥ‡—‰‘’ƒŽƒ‹††‹ƒ”ȋͷͿͼͻȌͻ;ͺ͹Ϳȋƒ†ǤȌȐ

Illustration 1:

”Ǥ‹•–Š‡‘™‡”‘ˆ–Š”‡‡Š‘—•‡•ǡ™Š‹…Šƒ”‡ƒŽŽŽ‡–‘—–ƒ†‘–‰‘˜‡”‡†„›–Š‡‡–‘–”‘Ž…–Ǥ ”‘–Š‡
ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ϐ‹†‘—––Š‡‰”‘••ƒ—ƒŽ˜ƒŽ—‡‹‡ƒ…Š…ƒ•‡ǣ

Particulars I II III
—‹…‹’ƒŽƒŽ—‡ ͵ͲǡͲͲͲ ʹͲǡͲͲͲ ͵ͷǡͲͲͲ
…–—ƒŽȋ‡ˆƒ…–‘Ȍ‡– ͵ʹǡͲͲͲ ʹͺǡͲͲͲ ͵ͲǡͲͲͲ
ƒ‹”‡– ͵͸ǡͲͲͲ ʹͶǡͲͲͲ ͵ʹǡͲͲͲ

Solution:

”‘••—ƒŽƒŽ—‡ȋ
Ȍǣ‹‰Š‡”‘ˆš’‡…–‡†‘”…–—ƒŽ‡–š’‡…–‡†‡–ǣ‹‰Š‡”‘ˆ—‹…‹’ƒŽƒŽ—ƒ–‹‘‘”
ƒ‹”‡–
‘—•‡ǣ•Ǥ͵͸ǡͲͲͲ
‘—•‡ǣ•ǤʹͶǡͲͲͲ
‘—•‡ǣ•Ǥ͵ͷǡͲͲͲ
…–—ƒŽ‡–ȋ‰‹˜‡Ȍ
ǣ
‘—•‡ǣ•Ǥ͵͸ǡͲͲͲ‘—•‡ǣ•ǤʹͺǡͲͲͲ‘—•‡ǣ•Ǥ͵ͷǡͲͲͲ

Illustration 2:
”Ǥ‹•–Š‡‘™‡”‘ˆˆ‘—”Š‘—•‡•ǡ™Š‹…Šƒ”‡ƒŽŽŽ‡–‘—–ƒ†ƒ”‡…‘˜‡”‡†„›–Š‡‡–‘–”‘Ž…–Ǥ ”‘–Š‡ˆ‘ŽŽ‘™‹‰
’ƒ”–‹…—Žƒ”•ϐ‹†‘—––Š‡‰”‘••ƒ—ƒŽ˜ƒŽ—‡‹‡ƒ…Š…ƒ•‡ǡ‰‹˜‹‰”‡ƒ•‘•ˆ‘”›‘—”ƒ•™‡”ǣ

Particulars I II III IV
—‹…‹’ƒŽƒŽ—‡ ͵ͲǡͲͲͲ ʹ͸ǡͲͲͲ ͵ͷǡͲͲͲ ͵ͲǡͲͲͲ
…–—ƒŽȋ‡ ƒ…–‘Ȍ‡– ͶͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ʹǡͲͲͲ ͵ʹǡͲͲͲ
ƒ‹”‡– ͵͸ǡͲͲͲ ʹͺǡͲͲͲ ͵ͲǡͲͲͲ ͵͸ǡͲͲͲ
–ƒ†ƒ”†‡– ͵ͲǡͲͲͲ ͵ͷǡͲͲͲ ͵͸ǡͲͲͲ ͶͲǡͲͲͲ
 162 Lesson 4 Ȉ EP-TL

Solution:

•ƒŽŽ–Š‡Š‘—•‡•ƒ”‡…‘˜‡”‡†„›–Š‡‡–‘–”‘Ž…–ǡ–Š‡‹”‰”‘••ƒ—ƒŽ˜ƒŽ—‡™‹ŽŽ„‡Š‹‰Š‡”‘ˆ‡š’‡…–‡†‡–‘”
…–—ƒŽ‡–Ǥš’‡…–‡†‡–•ŠƒŽŽ„‡Š‹‰Š‡”‘ˆ—‹…‹’ƒŽƒŽ—‡‘” ƒ‹””‡–„—–•—„Œ‡…––‘–ƒ†ƒ”†‡–ǣ

Particulars I II III IV
š’‡…–‡†‡– ͵ͲǡͲͲͲ ʹͺǡͲͲͲ ͵ͷǡͲͲͲ ͵͸ǡͲͲͲ
…–—ƒŽȋ‡ ƒ…–‘Ȍ‡– ͶͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ʹǡͲͲͲ ͵ʹǡͲͲͲ

ǤǤǤ ͶͲǡͲͲͲ ͵ͲǡͲͲͲ ͵ͷǡͲͲͲ ͵͸ǡͲͲͲ

Ȉ —ƒŽŽ‡––‹‰˜ƒŽ—‡‘ˆ•‡Žˆ‘……—’‹‡†’”‘’‡”–›ǡ•—„Œ‡…––‘‡–‘–”‘Ž…–‹•–‘„‡ϐ‹š‡†‘„ƒ•‹•‘ˆ•–ƒ†ƒ”†
”‡–ƒ†‘–‘„ƒ•‹•‘ˆ‘’‡ƒ”‡–‹ŽƒƒŒ˜ǤȋͷͿ;ͿȌͺͻƒšƒ͸ͽͿȀͷͽ;͹͸ͽȋ—ŒǤƬƒ”ǤȌǤ
Ȉ †‡–‡”‹‹‰ƒ—ƒŽ˜ƒŽ—‡•ƒŽƒ”›’ƒ‹†–‘…ƒ”‡–ƒ‡”…ƒ‘–„‡–ƒ‡‹–‘ƒ……‘—–˜Ǥ–Ǥ”‡‡Ž‡Šƒ
ƒ‡”Œ‡‡ȋͷͿ;ͿȌͺͻƒšƒ͹ͻ;ȀͷͽͿͺͼȋƒŽǤȌǤ
Ȉ ‘••”‡Žƒ–‹‰–‘•‡Žˆ‘……—’‹‡†Š‘—•‡’”‘’‡”–›…‘—Ž†„‡•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•˜ǤǤǤ
Šƒ†ƒȋ ȌȋͷͿ;ͿȌͺͻƒšƒ͹ͺͼȀͷͽ;ͼͶ͸ȋ—ŒǤƬƒ”ǤȌǤ

Where let out property is vacant for part of the year [Section 23(1)]
ƒ•…‡ƒ”‹‘‘ˆ˜ƒ…ƒ…›ˆ‘”ƒ’ƒ”–‘ˆ–Š‡›‡ƒ”ǡ‹–‹•“—‹–‡’”‘„ƒ„Ž‡–Šƒ––Š‡…–—ƒŽ‡–”‡…‡‹˜‡†Ȁ”‡…‡‹˜ƒ„Ž‡™‘—Ž†
ˆƒŽŽŽ‘™‡”–Šƒš’‡…–‡†‡–ƒ†‹•—…Šƒ‡˜‡–—ƒŽ‹–›Ǣ–Š‡”‡ˆ‘”‡–Š‡…–—ƒŽ‡–„‡…‘‡•–Š‡
”‘••—ƒŽƒŽ—‡Ǥ

Illustration 3:

ȋ‹Ǥ‡Ǥ‘˜ƒ…ƒ…›„—––Š‡”‡‹•—”‡ƒŽ‹œ‡†”‡–Ȍ
”Ǥ‘™•–™‘Š‘—•‡•ǤŠ‡‡š’‡…–‡†”‡–‘ˆ–Š‡Š‘—•‡‘‡‹••Ǥ͸ͷǡͲͲͲǤŠ‹•Š‘—•‡™ƒ•Ž‡–‘—–ˆ‘”•Ǥ͹ǡͷͲͲ
’ǤǤ—––Š‡”‡–ˆ‘”–Š‡‘–Š•‘ˆ ‡„”—ƒ”›ƒ†ƒ”…ŠǡʹͲʹʹ…‘—Ž†‘–„‡”‡ƒŽ‹œ‡†Ǥ
Š‡‡š’‡…–‡†”‡–‘ˆƒ‘–Š‡”Š‘—•‡‹••ǤͳǡͷͲǡͲͲͲǤŠ‹•Š‘—•‡™ƒ•Ž‡–‘—–ˆ‘”•ǤͳʹǡͲͲͲ’ǤǤ—––Š‡”‡–ˆ‘”–Š‡
Žƒ•––Š”‡‡‘–Š•…‘—Ž†‘–„‡”‡ƒŽ‹œ‡†Ǥ
–Š‡„‘–Š…ƒ•‡•ǡ”Ǥˆ—Žϐ‹ŽŽ•–Š‡…‘†‹–‹‘•‘ˆ—Ž‡ͶǤ‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡
”‘••—ƒŽƒŽ—‡‘ˆ
„‘–Š–Š‡Š‘—•‡•Ǥ
Solution:

Particulars House I House II

š’‡…–‡†‡– ͸ͷǡͲͲͲ ͳǡͷͲǡͲͲͲ
—ƒŽ‡– ͻͲǡͲͲͲ ͳͶͶͲͲͲ
”‡ƒŽ‹œ‡†‡– ͳͷǡͲͲͲ ͵͸ǡͲͲͲ
Computation of Gross Annual Value

Particulars House I House II

–‡’ͳǣš’‡…–‡†‡– ͸ͷǡͲͲͲ ͳǡͷͲǡͲͲͲ
–‡’ ʹǣ …–—ƒŽ ‡– ȋˆ–‡” †‡†—…–‹‰ —”‡ƒŽ‹œ‡† ”‡–Ȍ ‹ˆ Š‹‰Š‡” –Šƒ ͹ͷǡͲͲͲ ǤǤ
š’‡…–‡†‡––Š‡…–—ƒŽ”‡–‘–Š‡”™‹•‡š’‡…–‡†”‡–
–‡’͵ǣ’’Ž‹…ƒ„Ž‡‘Ž›‹…ƒ•‡‘ˆ˜ƒ…ƒ…› ǤǤ ǤǤ

”‘••—ƒŽƒŽ—‡ ͹ͷǡͲͲͲ ͳǡͷͲǡͲͲͲ
Lesson 4 Ȉ Part II – Income under the head House Property 163

Illustration 4:

(There is vacancy but no unrealized rent)

‹†‘—––Š‡‰”‘••ƒ—ƒŽ˜ƒŽ—‡‹–Š‡…ƒ•‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰’”‘’‡”–‹‡•ˆ‘”–Š‡••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵
Rs. in thousands

Particulars P Q R S
š’‡…–‡†‡– ͹Ͳ ͷͷ ͺͷ ͳʹͷ
‡–‡”‘–Šȋ‹ˆŽ‡–‘—–Ȍ ͹ ͷ ͺ ͺ
‡–‘—–’‡”‹‘†ȋ‹‘–Š•Ȍ ͳͳ Ͳ ͻ ͳͲ
ƒ…ƒ…›ȋ‹‘–Š•Ȍ ͳ ͳʹ ͵ ʹ

—”–Š‡”ƒŽŽ–Š‡”‡–™‡”‡”‡ƒŽ‹œ‡†ˆ‘”–Š‡›‡ƒ”„›–Š‡ƒ••‡••‡‡Ǥ
Solution:
Calculation of Gross Annual Value of Mr. X for A.Y. 2022-23

Particulars P Q R S
—ƒŽ‡–ȋˆŽ‡–‘—–ˆ‘”ͳʹ‘–Š•Ȍ ͺͶ ͸Ͳ ͻ͸ ͻ͸
‘••†—‡–‘˜ƒ…ƒ…› ͹ ͸Ͳ ʹͶ ͳ͸
”‡ƒŽ‹œ‡†”‡– ‹Ž ‹Ž ‹Ž ‹Ž
…–—ƒŽ‡–ȋˆ‘”Ž‡–‘—–’‡”‹‘†Ȍ ͹͹ ‹Ž ͹ʹ ͺͺ
ƒŽ…—Žƒ–‹‘‘ˆ
”‘••—ƒŽƒŽ—‡
–‡’ͳǣš’‡…–‡†‡– ͹Ͳ ͷͷ ͺͷ ͳʹͷ
–‡’ʹǣˆƒ—ƒŽ”‡–‹•‘”‡–Šƒš’‡…–‡†‡––Š‡ ͺͶ ǤǤ ͻ͸ ͳʹͷ
ƒ—ƒŽ”‡–‘–Š‡”™‹•‡‡š’‡…–‡†‡–
–‡’͵ǣˆ’”‘’‡”–›”‡ƒ‹˜ƒ…ƒ––Š‡†‡…Ž‹‡†—‡ –‘ ͹ Ͳ ʹ͹ ͳ͸
˜ƒ…ƒ…›•ŠƒŽŽ„‡…‘•‹†‡”‡†

”‘••ƒ—ƒŽ˜ƒŽ—‡ ͹͹ Ͳ ͹ʹ ͳͲͻ

Illustration 5:
ȋƒ…ƒ…›ƒ†—”‡ƒŽ‹œ‡†”‡–„‘–Š‡š‹•–Ȍ
”Ǥ‹•–Š‡‘™‡”‘ˆƒŠ‘—•‡’”‘’‡”–›Ǥ‡Ž‡–•–Š‹•’”‘’‡”–›†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹˆ‘”•Ǥ͹ǡͲͲͲ’ǤǤ
Š‡Š‘—•‡™ƒ•‘……—’‹‡†ˆ”‘ͳǤͶǤʹͲʹͳ–‘͵ͳǤͳǤʹͲʹʹǤ ”‘ͳǤʹǤʹͲʹʹǡ‹–”‡ƒ‹‡†˜ƒ…ƒ–Ǥ”Ǥˆƒ‹Ž•–‘”‡ƒŽ‹œ‡•Ǥ
ͳͲǡͲͲͲˆ”‘–Š‡–‡ƒ–ǤŠ‡š’‡…–‡†”‡–‘ˆ–Š‡Š‘—•‡‹••ǤͺʹǡͲͲͲ’ǤƒǤ
ƒŽ…—Žƒ–‡–Š‡
”‘••—ƒŽƒŽ—‡‘ˆ–Š‡Š‘—•‡Ǥ
Solution:

Particulars Rs.
š’‡…–‡†‡– ͺʹǡͲͲͲ
—ƒŽ‡–ȋ…–—ƒŽˆ‘”–Š‡™Š‘Ž‡›‡ƒ”Ǧ͹ͲͲͲšͳʹȌ ͺͶǡͲͲͲ
…–—ƒŽ‡–ȋ͹ǡͲͲͲšͳͲȌ ͹ͲǡͲͲͲ
 164 Lesson 4 Ȉ EP-TL

”‡ƒŽ‹œ‡†”‡– ͳͲǡͲͲͲ
‡ƒŽ‹œ‡†”‡–ȋ͹ͲǡͲͲͲǦͳͲǡͲͲͲȌ ͸ͲǡͲͲͲ
‘••—‡–‘˜ƒ…ƒ…›ȋ͹ǡͲͲͲšʹȌ ͳͶǡͲͲͲ
‡…Ž‹‡†—‡–‘˜ƒ…ƒ…›ȋͺʹǡͲͲͲǦͳͶǡͲͲͲȌ„—–‘–Ž‡••–Šƒƒ…–—ƒŽ”‡–”‡…‡‹˜‡† ͸ͺǡͲͲͲ

Calculation of Gross Annual Value

–‡’ͳǣš’‡…–‡†‡– ͺʹǡͲͲͲ
–‡’ʹǣˆƒ…–—ƒŽ”‡–‹•‘”‡–Šƒ‡š’‡…–‡†”‡––Šƒƒ…–—ƒŽ”‡–‘–Š‡”™‹•‡‡š’‡…–‡†”‡– ͺͶǡͲͲͲ
–‡’͵ǣ‡…Ž‹‡†—‡–‘˜ƒ…ƒ…›‹š’‡…–‡†‡–ȋ‹Ǥ‡Ǥš’‡…–‡†‡–‹—•‘••†—‡–‘ ͳͶǡͲͲͲ
˜ƒ…ƒ…› „—–‘–Ž‡••–Šƒƒ…–—ƒŽ”‡–”‡…‡‹˜‡†Ȍ

”‘••—ƒŽƒŽ—‡ ͸ͺǡͲͲͲ

Š‡”‡’”‘’‡”–›‹••‡ŽˆǦ‘……—’‹‡†Ȁ—‘……—’‹‡†ȏ‡…–‹‘ʹ͵ȋʹȌȐ
Š‡”‡–Š‡’”‘’‡”–›…‘•‹•–•‘ˆƒŠ‘—•‡‘”’ƒ”–‘ˆƒŠ‘—•‡‹–Š‡‘……—’ƒ–‹‘‘ˆ–Š‡‘™‡”ˆ‘”Š‹•‘™”‡•‹†‡…‡ǡƒ†
‹•‘–ƒ…–—ƒŽŽ›Ž‡–†—”‹‰ƒ›’ƒ”–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†‘‘–Š‡”„‡‡ϐ‹–‹•†‡”‹˜‡†–Š‡”‡ˆ”‘„›–Š‡‘™‡”ǡ–Š‡
ƒ—ƒŽ˜ƒŽ—‡‘ˆ•—…ŠƒŠ‘—•‡‘”’ƒ”–‘ˆ–Š‡Š‘—•‡•ŠƒŽŽ„‡–ƒ‡–‘„‡‹ŽǤŠ‡‘Ž›†‡†—…–‹‘ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ
•—…Š Š‘—•‡ ‹• –‘™ƒ”†• ‹–‡”‡•– ‘ „‘””‘™‡† …ƒ’‹–ƒŽ ‹ –‡”• ‘ˆ ‡…–‹‘ ʹͶȋͳȌȋ˜‹Ȍ „—– •—„Œ‡…– –‘ ƒ …‡‹Ž‹‰ ‘ˆ •Ǥ
͵ͲǡͲͲͲ‘”•ǤʹǡͲͲǡͲͲͲƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ‘–Š‡”™‘”†•ǡ–‘–Š‹•‡š–‡––Š‡”‡…‘—Ž†„‡ƒŽ‘••ˆ”‘•—…ŠŠ‘—•‡Ǥ

Concession for two Houses only:

Š‡”‡ –Š‡ ƒ••‡••‡‡ Šƒ• ‘……—’‹‡† ‘”‡ –Šƒ –™‘ Š‘—•‡• ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ”‡•‹†‡…‡ ˆ‘” Š‹•‡Žˆ ƒ† ˆƒ‹Ž›
‡„‡”•ǡŠ‡Šƒ•–‘ƒ‡ƒ…Š‘‹…‡‘ˆ–™‘Š‘—•‡•‘Ž›‹”‡•’‡…–‘ˆ™Š‹…ŠŠ‡™‘—Ž†Ž‹‡–‘…Žƒ‹‡š‡’–‹‘Ǥ–Š‡”
•‡ŽˆǦ‘……—’‹‡†Š‘—•‡•™‹ŽŽ„‡–”‡ƒ–‡†ƒ•‹ˆ–Š‡›™‡”‡Ž‡–‘—–ƒ†–Š‡‹”ƒ—ƒŽ˜ƒŽ—‡™‹ŽŽ„‡†‡–‡”‹‡†‹–Š‡•ƒ‡
ƒ‡”ƒ•™‡Šƒ˜‡†‹•…—••‡†‹–Š‡…ƒ•‡‘ˆŽ‡–‘—–’”‘’‡”–›Ǥ
Ȉ —ƒŽƒŽ—‡™‘—Ž†„‡–ƒ‡ƒ•‹Ž
Ȉ –‹•‹’‡”ƒ–‹˜‡–Šƒ––Š‡’”‘’‡”–›‹••‡ŽˆǦ‘……—’‹‡†—‘……—’‹‡†ˆ‘”–Š‡™Š‘Ž‡›‡ƒ”
Ȉ Š‹•„‡‡ϐ‹–‹•ˆ‘”–™‘Š‘—•‡•
Ȉ Š‹•„‡‡ϐ‹–‹•ˆ‘”†‹˜‹†—ƒŽȀ ‘Ž›
Ȉ ‘†‡†—…–‹‘‹•ƒŽŽ‘™‡†ˆ‘”—‹…‹’ƒŽƒš‡•ˆ‘”•—…Š’”‘’‡”–›
‘–‡ǣŠ‡‡†—…–‹‘‘ˆ•Ǥ͵ͲǡͲͲͲȀ•ǤʹǡͲͲǡͲͲͲ™‹–Š”‡•’‡…––‘–‡”‡•–’ƒ‹†‘„‘””‘™‡†…ƒ’‹–ƒŽ—Ȁ•ʹͶȋ„Ȍ‘–
ƒŽŽ‘™‡†‹…ƒ•‡‘ˆ‡Žˆ‘……—’‹‡†”‘’‡”–›ǡ‹ˆƒ••‡••‡‡‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ

Illustration 6:

”Ǥ‘™•ƒŠ‘—•‡™Š‹…Š—•‡•ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•–Š”‘—‰Š‘—––Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤ—‹…‹’ƒŽƒŽ—‡ǣ
•ǤʹǡͶͲǡͲͲͲǤ ƒ‹”‡–ǣ•Ǥ͵ǡͲͲǡͲͲͲǤ‘’—–‡‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ƒ••—‹‰ˆ‘ŽŽ‘™‹‰‡š’‡†‹–—”‡ƒ”‡
‹…—””‡†„›Š‹ǣ
M—‹…‹’ƒŽ–ƒš‡•’ƒ‹†ǣ•ǤͳͷǡͲͲͲ‡’ƒ‹”•ǣ•ǤͳʹǡͲͲͲ
‡’”‡…‹ƒ–‹‘ǣ•ǤͳͲǡͲͲͲ
–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽǣ•ǤʹǡͲͲǡͲͲͲȋŽ‘ƒ–ƒ‡‘ͳǤͳǤʹͲͳͶȌǤ‘—•‡™ƒ•’—”…Šƒ•‡†‘ͳǤͷǤʹͲͳ͹Ǥ
Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
 Lesson 4 Ȉ Part II – Income under the head House Property 165

Solution:
Option 1: Assessee has not opted for Section 115BAC

Particulars Rs.
‡–—ƒŽƒŽ—‡  ‹Ž
‡••ǣ–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ  ʹǡͲͲǡͲͲͲ
ȋŽ‘™‡”‘ˆƒ…–—ƒŽ‹–‡”‡•–‘”ʹǡͲͲǡͲͲͲǢƒ•…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†Ȍ
‘••ˆ”‘‘—•‡”‘’‡”–›  ȋʹǡͲͲǡͲͲͲȌ
Option 2: Assessee has opted for Section 115BAC

Particulars Rs.
‡–—ƒŽƒŽ—‡  ‹Ž
‡••ǣ–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ  
…‘‡ˆ”‘‘—•‡”‘’‡”–›  ‹Ž

Where the property is partly let out and partly self-occupied during the PY [Section 23(3)]
(a) Property let out partially:

Š‡ ƒ ’‘”–‹‘ ‘ˆ –Š‡ Š‘—•‡ ‹• •‡ŽˆǦ‘……—’‹‡†ˆ‘” –Š‡ ˆ—ŽŽ ›‡ƒ” ƒ† ƒ ’‘”–‹‘ ‹• •‡ŽˆǦ‘……—’‹‡†ˆ‘” ™Š‘Ž‡ ›‡ƒ”ǡ –Š‡
ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡•ŠƒŽŽ„‡†‡–‡”‹‡†ƒ•—†‡”ǣ
ȋ‹Ȍ ”‘ –Š‡ ˆ—ŽŽ ƒ—ƒŽ ˜ƒŽ—‡ ‘ˆ –Š‡ Š‘—•‡ –Š‡ ’”‘’‘”–‹‘ƒ–‡ ƒ—ƒŽ ˜ƒŽ—‡ ˆ‘” •‡ŽˆǦ‘……—’‹‡† ’‘”–‹‘ ˆ‘” –Š‡
™Š‘Ž‡›‡ƒ”•ŠƒŽŽ„‡†‡†—…–‡†Ǥ
ȋ‹‹Ȍ Š‡„ƒŽƒ…‡—†‡”ȋ‹Ȍ•ŠƒŽŽ„‡–Š‡ƒ—ƒŽ˜ƒŽ—‡ˆ‘”Ž‡–‘—–’‘”–‹‘ˆ‘”ƒ’ƒ”–‘ˆ–Š‡›‡ƒ”Ǥ

Illustration 7:

”ǤǤ‘™•ƒŠ‘—•‡ǤŠ‡—‹…‹’ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡‹••ǤͷͲǡͲͲͲǤ‡’ƒ‹†•ǤͺǡͲͲͲƒ•Ž‘…ƒŽ–ƒš‡•†—”‹‰–Š‡
›‡ƒ”Ǥ‡—•‡•–Š‹•Š‘—•‡ˆ‘”Š‹•”‡•‹†‡–‹ƒŽ’—”’‘•‡•„—–Ž‡–•‘—–ŠƒŽˆ‘ˆ–Š‡Š‘—•‡̷•Ǥ͵ǡͲͲͲ’ǤǤ‘’—–‡–Š‡
ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡Ǥ
Solution:

Particulars Rs.

”‘••—ƒŽ”‡–‘”—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘ȋŠ‹‰Š‡”Ȍ ͹ʹǡͲͲͲ
‡••ǣ‘…ƒŽ–ƒš‡•’ƒ‹† ͺǡͲͲͲ
‡–—ƒŽ˜ƒŽ—‡‘ˆ‘—•‡”‘’‡”–› ͸ͶǡͲͲͲ
‡••ǣƒŽˆ‘ˆƒ—ƒŽ˜ƒŽ—‡”‡‰ƒ”†‹‰•‡Žˆ‘……—’‹‡†’‘”–‹‘ˆ‘”–Š‡™Š‘Ž‡›‡ƒ” ͵ʹǡͲͲͲ
‡–—ƒŽƒŽ—‡‘ˆŽ‡–‘—–’‘”–‹‘ ͳ͸ǡͲͲͲ

(b) House let out during any part of the previous year and self occupied for the remaining part of the year:
–Š‹•…ƒ•‡–Š‡„‡‡ϐ‹–‘ˆ‡…–‹‘ʹ͵ȋʹȌ‹•‘–ƒ˜ƒ‹Žƒ„Ž‡ƒ†–Š‡‹…‘‡™‹ŽŽ„‡…‘’—–‡†ƒ•‹ˆ–Š‡’”‘’‡”–›‹•Ž‡–‘—–Ǥ
 166 Lesson 4 Ȉ EP-TL

Illustration 8:
‹•–Š‡‘™‡”‘ˆƒŠ‘—•‡ǤŠ‡—‹…‹’ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡‹••ǤͶͲǡͲͲͲǤ‡’ƒ‹†•ǤͺǡͲͲͲƒ•Ž‘…ƒŽ–ƒš‡•†—”‹‰
–Š‡›‡ƒ”Ǥ‡™ƒ•—•‹‰–Š‹•Š‘—•‡ˆ‘”Š‹•”‡•‹†‡–‹ƒŽ’—”’‘•‡•„—–Ž‡–‘—–™Ǥ‡ǤˆǤͳǤͳǤʹͲʹʹ̷•ǤͶǡͲͲͲ’ǤǤ‘’—–‡
–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡Ǥ

Solution:

Particulars Rs.

”‘••ƒ—ƒŽ˜ƒŽ—‡ǣǦ…–—ƒŽ”‡–‘”š’‡…–‡†‡–ȋ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ȍ  ͶͺǡͲͲͲ
‡••ǣ‘…ƒŽ–ƒš‡•  ͺǡͲͲͲ
‡–—ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡  ͶͲǡͲͲͲ
ȋ‘„‡‡ϐ‹–•ŠƒŽŽ„‡‰‹˜‡ˆ‘”•‡Žˆ‘……—’‹‡†’‡”‹‘†ƒ•–Š‡Š‘—•‡†‹†‘–”‡ƒ‹˜ƒ…ƒ–†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ȍ
Noteǣˆˆƒ‹””‡–‹•‘–‰‹˜‡ǡ–Š‡ƒ••—‡ƒ…–—ƒŽ”‡–ƒ•ˆƒ‹””‡–Ǥ

(c) Self-occupied House remaining vacant:

ˆ–Š‡ƒ••‡••‡‡Šƒ•”‡•‡”˜‡†ƒ›–™‘Š‘—•‡•ȋ‘™‡†„›Š‹Ȍˆ‘”Š‹•”‡•‹†‡…‡‘”Š‡‹•–Š‡‘™‡”‘ˆ–™‘Š‘—•‡•ǡ‘‡
‘ˆ™Š‹…Š‹•‡ƒ–ˆ‘”Š‹•‘™”‡•‹†‡…‡„—–…‘—Ž†‘–„‡‘……—’‹‡†„›Š‹ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•‹–Š‡’”‡˜‹‘—•
›‡ƒ”‘™‹‰–‘–Š‡ˆƒ…––Šƒ–Š‡Šƒ†–‘Ž‹˜‡ƒ–•‘‡‘–Š‡”’Žƒ…‡‹ƒŠ‘—•‡‘–„‡Ž‘‰‹‰–‘Š‹ǡ–Š‡Š‡…ƒ…Žƒ‹‘Ǧ
‘……—’ƒ–‹‘‘”˜ƒ…ƒ…›ƒŽŽ‘™ƒ…‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”–Š‡’‡”‹‘††—”‹‰™Š‹…ŠŠ‘—•‡”‡ƒ‹‡†˜ƒ…ƒ–ǤŠ‡
”‡ƒ•‘ˆ‘”Š‹•Ž‹˜‹‰ƒ–ƒ†‹ˆˆ‡”‡–’Žƒ…‡‹‰Š–„‡ˆ‘”„—•‹‡••‘”’”‘ˆ‡••‹‘ƒŽ’—”’‘•‡•‘”ˆ‘”ƒ•ƒŽƒ”‹‡†‡’Ž‘›‡‡
†—‡–‘–”ƒ•ˆ‡”‡–…ǤŠ‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡Š‘—•‡ǡ™Š‹…Š”‡ƒ‹‡†˜ƒ…ƒ–‹–Š‡•‡…‹”…—•–ƒ…‡•ǡ•ŠƒŽŽ„‡‹ŽǤ
Š‡ƒ„‘˜‡‡–‹‘‡†…‘…‡••‹‘™‹ŽŽ„‡‰”ƒ–‡†–‘–Š‡ƒ••‡••‡‡‘Ž›‹ˆŠ‡Šƒ•‡‹–Š‡”Ž‡–‘—––Š‡•ƒ‹†Š‘—•‡‘”Šƒ•
†‡”‹˜‡†ƒ›„‡‡ϐ‹–ˆ”‘‹–†—”‹‰–Š‡’‡”‹‘†ˆ‘”™Š‹…Š‹–”‡ƒ‹‡†˜ƒ…ƒ–ǤŽ›†‡†—…–‹‘ˆ‘”‹–‡”‡•–‘„‘””‘™‡†
…ƒ’‹–ƒŽ—’–‘ƒƒš‹—‘ˆ•ǤʹǡͲͲǡͲͲͲ‹•ƒŽŽ‘™‡†‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣǦ
ͳǤ ƒ’‹–ƒŽ‹•„‘””‘™‡†ˆ‘”—”…Šƒ•‡Ȁ‘•–”—…–‹‘‘ˆ’”‘’‡”–›Ǣ
ʹǤ ƒ’‹–ƒŽ„‘””‘™‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹Žͳͻͻͻƒ†•—…Šƒ…“—‹•‹–‹‘‘”…‘•–”—…–‹‘‹•…‘’Ž‡–‡†
™‹–Š‹ϐ‹˜‡›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š…ƒ’‹–ƒŽ™ƒ•„‘””‘™‡†Ǥ
ˆƒ›‘ˆƒ„‘˜‡…‘†‹–‹‘•ƒ”‡‘–‡––Š‡ƒš‹—†‡†—…–‹‘ƒŽŽ‘™‡†•ŠƒŽŽ„‡Ž‹‹–‡†–‘•Ǥ͵ͲǡͲͲͲ‘Ž›Ǥ
NoteǣŠ‡‡†—…–‹‘‘ˆ•Ǥ͵ͲǡͲͲͲȀ•ǤʹǡͲͲǡͲͲͲ™‹–Š”‡•’‡…––‘–‡”‡•–’ƒ‹†‘„‘””‘™‡†…ƒ’‹–ƒŽ—Ȁ•ʹͶȋ„Ȍ
not allowed in case of Self occupied Property, if assessee opted for section 115BAC of the Income Tax Act, 1961

Deemed to be let-out property [Section 23(4)]

Ȉ ••‡••‡‡‰‹˜‡–Š‡…Š‘‹…‡‘ˆƒ›–™‘Š‘—•‡•–‘„‡…‘•–”—‡†ƒ••‡ŽˆǦ‘……—’‹‡†ƒ†ˆ‘”–Šƒ––Š‡—ƒŽƒŽ—‡
™‘—Ž†„‡
Ȉ ‘”‘–Š‡”•ǡ–Š‡›™‘—Ž†„‡–”‡ƒ–‡†ƒ•†‡‡‡†–‘„‡Ž‡–‘—–
Ȉ Š‡ƒ••‡••‡‡‹•ƒŽŽ‘™‡†„›–Š‡…‘‡ƒš…–Ǣ–Š‡ϐŽ‡š‹„‹Ž‹–›–‘…Šƒ‰‡–Š‡‘’–‹‘–‘•—‹–Š‹•‡‡†•Ȁ„‡‡ϐ‹–•
Ȉ •—…Šƒ•…ƒ•‡ǡ–Š‡”‡ˆ‘”‡ǡ–Š‡š’‡…–‡†‡–„‡…‘‡•–Š‡
”‘••—ƒŽƒŽ—‡
Ȉ —‹…‹’ƒŽƒš‡•’ƒ‹†„›–Š‡‘™‡”ˆ‘”–Š‡™Š‘Ž‡›‡ƒ”ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘
Notional Income from House Property held as stock in trade [Section 23(5)]
—ƒŽ˜ƒŽ—‡‘ˆŠ‘—•‡’”‘’‡”–›Š‡Ž†„›ƒ’‡”•‘ƒ••–‘…‹–”ƒ†‡•ŠƒŽŽ„‡–ƒ‡ƒ•‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡
•ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ Š‡”‘’‡”–›ȋ…‘•‹•–‹‰‘ˆ„—‹Ž†‹‰•‘”Žƒ†ƒ’’—”–‡ƒ––Š‡”‡–‘Ȍ‹•Š‡Ž†ƒ••–‘…‹–”ƒ†‡„›–Š‡‘™‡”‘ˆ
–Š‡’”‘’‡”–›Ǣ
ȋ„Ȍ Š‡’”‘’‡”–›ȋ‘”ƒ›’ƒ”–‘ˆ’”‘’‡”–›Ȍ‹•‘–Ž‡–‘—–†—”‹‰™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
 Lesson 4 Ȉ Part II – Income under the head House Property 167

„‘˜‡ „‡‡ϐ‹–Ȁ…‘…‡••‹‘ ‹• ƒ˜ƒ‹Žƒ„Ž‡ ‘Ž› ˆ‘” ʹ ›‡ƒ”• ˆ”‘ –Š‡ ‡† ‘ˆ –Š‡ ϐ‹ƒ…‹ƒŽ ›‡ƒ” ‹ ™Š‹…Š …‡”–‹ϐ‹…ƒ–‡ ‘ˆ
…‘’Ž‡–‹‘‘ˆ…‘•–”—…–‹‘‘ˆ–Š‡’”‘’‡”–›‹•‘„–ƒ‹‡†ˆ”‘–Š‡…‘’‡–‡–—–Š‘”‹–›Ǥ

DEDUCTIONS FROM NET ANNUAL VALUE [SECTION 24]

Standard Deduction: ͵ͲΨ‘ˆ‡–—ƒŽƒŽ—‡
ƒǤ Š‹•‹•‘–ƒ˜ƒ‹Žƒ„Ž‡™Š‡–Š‡—ƒŽƒŽ—‡‹•
„Ǥ Š‹•‹•ƒϐŽƒ–†‡†—…–‹‘‹””‡•’‡…–‹˜‡‘ˆ–Š‡ƒ…–—ƒŽ‡š’‡†‹–—”‡‹…—””‡†
Interest on Borrowed Capital
ƒǤ –‡”‡•– ‘ „‘””‘™‡† …ƒ’‹–ƒŽ ˆ‘” ’—”…Šƒ•‡Ȁ…‘•–”—…–‹‘Ȁ”‡’ƒ‹”Ȁ”‡‡™ƒŽȀ”‡Ǧ…‘•–”—…–‹‘ ‹• ƒŽŽ‘™‡† ƒ• ƒ
†‡†—…–‹‘ˆ”‘‰”‘••ƒ—ƒŽ˜ƒŽ—‡Ǥ
„Ǥ ”‡Ǧ…‘•–”—…–‹‘’‡”‹‘†‹–‡”‡•–‹•ƒŽ•‘ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘Ǥ”‡Ǧ…‘•–”—…–‹‘’‡”‹‘†”‡ˆ‡”•–‘–Š‡’‡”‹‘†
•–ƒ”–‹‰ˆ”‘–Š‡†ƒ–‡‘ˆ–ƒ‹‰‘ˆŽ‘ƒƒ†‡†‹‰™‹–Š–Š‡‡†‘ˆϐ‹ƒ…‹ƒŽ›‡ƒ”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š…‘•–”—…–‹‘‹•…‘’Ž‡–‡†ȋ‘”–Š‡†ƒ–‡‘ˆ”‡’ƒ›‡–‘ˆŽ‘ƒǢ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ȌǤ
Š‹•…ƒ„‡…Žƒ‹‡†ˆ‘”ƒ’‡”‹‘†‘ˆͷ‡“—ƒŽ‹•–ƒŽŽ‡–••–ƒ”–‹‰ˆ”‘–Š‡›‡ƒ”‘ˆƒ…“—‹•‹–‹‘Ȁ…‘’Ž‡–‹‘‘ˆ
…‘•–”—…–‹‘Ǥ
…Ǥ ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒ†‡—†‡”–Š‡•‡…‘†’”‘˜‹•‘—Ž‡••–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒ…‡”–‹ϐ‹…ƒ–‡ǡˆ”‘–Š‡
’‡”•‘–‘™Š‘ƒ›‹–‡”‡•–‹•’ƒ›ƒ„Ž‡‘–Š‡…ƒ’‹–ƒŽ„‘””‘™‡†ǡ•’‡…‹ˆ›‹‰–Š‡ƒ‘—–‘ˆ‹–‡”‡•–’ƒ›ƒ„Ž‡„›
–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡‘ˆ•—…Šƒ…“—‹•‹–‹‘‘”…‘•–”—…–‹‘‘ˆ–Š‡’”‘’‡”–›ǡ‘”ǡ…‘˜‡”•‹‘‘ˆ–Š‡™Š‘Ž‡
‘”ƒ›’ƒ”–‘ˆ–Š‡…ƒ’‹–ƒŽ„‘””‘™‡†™Š‹…Š”‡ƒ‹•–‘„‡”‡’ƒ‹†ƒ•ƒ‡™Ž‘ƒǤ
Summary on Allowability
‡–‘—–Ȁ‡‡‡†–‘„‡Ž‡–‘—–’”‘’‡”–›
ͳȌ –ƒ†ƒ”††‡†—…–‹‘‘ˆ͵ͲΨ‘ˆ‹•ˆ—ŽŽ›ƒŽŽ‘™‡†ȏ‡…–‹‘ʹͶȋƒȌȐ
ʹȌ –‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ‹•ˆ—ŽŽ›ƒŽŽ‘™‡†ȏ‡…–‹‘ʹͶȋ„ȌȐ
Self-occupied properties
ͳȌ ‹…‡–Š‡—ƒŽƒŽ—‡‹•‹Žǡ–Š‡”‡‹•‘–ƒ†ƒ”††‡†—…–‹‘ƒ˜ƒ‹Žƒ„Ž‡
ʹȌ …ƒ•‡–Š‡…ƒ’‹–ƒŽ‹•„‘””‘™‡†
ƒǤ ˆ‘””‡’ƒ‹”•Ȁ”‡‡™ƒŽ•Ȁ”‡…‘•–”—…–‹‘ǡ–Š‡ƒš‹—ƒŽŽ‘™ƒ„Ž‡†‡†—…–‹‘‘ƒ……‘—–‘ˆ‹–‡”‡•–‹•
Ž‹‹–‡†–‘͵ͲͲͲͲǤ
„Ǥ ˆ‘”ƒ…“—‹•‹–‹‘Ȁ…‘•–”—…–‹‘ǡ–Š‡†‡†—…–‹‘™‘—Ž††‡’‡†‘™Š‡–Š‡”–Š‡Ž‘ƒ™ƒ•–ƒ‡’”‹‘”–‘‘”Žƒ–‡”
‹Ǥ  …ƒ•‡ …ƒ’‹–ƒŽ „‘””‘™‡† ’”‹‘” –‘ ͳǤͶǤͻͻǢ –Š‡ ƒš‹— ƒŽŽ‘™ƒ„Ž‡ †‡†—…–‹‘ ‘ ƒ……‘—– ‘ˆ
‹–‡”‡•–‹•Ž‹‹–‡†–‘͵ͲͲͲͲǢ
‹‹Ǥ …ƒ•‡…ƒ’‹–ƒŽ„‘””‘™‡†’‘•–ͳǤͶǤͻͻǢƒ•Ž‘‰ƒ•–Š‡ƒ…“—‹•‹–‹‘Ȁ…‘•–”—…–‹‘™ƒ•…‘’Ž‡–‡†
™‹–Š‹ͷ›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ ‹™Š‹…Š–Š‡…ƒ’‹–ƒŽ™ƒ•„‘””‘™‡†ǡƒ†–Š‡ƒ••‡••‡‡‹•‹
’‘••‡••‹‘‘ˆƒ…‡”–‹ϐ‹…ƒ–‡‘‹–‡”‡•–’ƒ›ƒ„Ž‡ˆ”‘–Š‡Ž‡†‡”ǡ–Š‡ƒš‹—ƒŽŽ‘™ƒ„Ž‡†‡†—…–‹‘
‘ƒ……‘—–‘ˆ‹–‡”‡•–‹•Ž‹‹–‡†–‘ʹͲͲǡͲͲͲǤ
 Š‡”‡ –Š‡ ƒ••‡••‡‡ Šƒ• ‘’–‡† ˆ‘” –™‘ Š‘—•‡• –‘ „‡ –”‡ƒ–‡† ƒ• •‡Žˆ ‘……—’‹‡†ǡ –Š‡ …‘„‹‡† –‘–ƒŽ
†‡†—…–‹‘‘ˆ–Š‡ƒ‘—–‘ˆ‹–‡”‡•–‰‹˜‡ƒ„‘˜‡•ŠƒŽŽ‹ƒ‰‰”‡‰ƒ–‡”‡ƒ‹ƒš‹—–‘•Ǥ͵ͲǡͲͲͲ‘”
•ǤʹǡͲͲǡͲͲͲƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
NoteǣŠ‡‡†—…–‹‘‘ˆ•Ǥ͵ͲǡͲͲͲȀ•ǤʹǡͲͲǡͲͲͲ™‹–Š”‡•’‡…––‘–‡”‡•–’ƒ‹†‘„‘””‘™‡†…ƒ’‹–ƒŽ—Ȁ•ʹͶȋ„Ȍ‘–
allowed in case of Self occupied Property, if assessee opted for section 115BAC of the Income Tax Act, 1961
Points to Remember
ͳǤ –‡”‡•–‘‘˜‡”†—‡‹–‡”‡•–‹•‘–ƒŽŽ‘™‡†—Ȁ•ʹͶȋ„Ȍ…‘‡–ƒš…–ǡͳͻ͸ͳǤȏŠ‡™‹••‡Šƒ––‡”ȋȌȔ
ʹǤ ˜‡‹–‡”‡•–‘—’ƒ‹†’—”…Šƒ•‡’”‹…‡‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘—Ȁ•ʹͶȋ„Ȍ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳȏ
—‹Ž—ƒ”Šƒ”ƒȋ—Œƒ„Ƭƒ”›ƒƒȌ
 168 Lesson 4 Ȉ EP-TL

Treatment of Unrealised Rent

”‡ƒŽ‹•‡†”‡–…ƒ„‡”‡†—…‡†ˆ”‘–Š‡ƒ…–—ƒŽ”‡–”‡…‡‹˜‡†Ȁ”‡…‡‹˜ƒ„Ž‡ǡ‹ˆ‹–‹•ǯ–…ƒ’ƒ„Ž‡‘ˆ„‡‹‰”‡ƒŽ‹•‡†ǡ‹ˆ–Š‡
–‡ƒ…›‹•„‘ƒϔ‹†‡ǡ–Š‡†‡ˆƒ—Ž–‹‰–‡ƒ–Šƒ•‡‹–Š‡”˜ƒ…ƒ–‡†‘”•–‡’•ƒ”‡‹’”‘‰”‡••–‘…‘’‡ŽŠ‹–‘˜ƒ…ƒ–‡ǡ–Šƒ–
Š‡‹•ǯ–‘……—’›‹‰ƒ›‘–Š‡”’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡Ǥ

Summary of computation of Income from House Property

A) Computation of Income in case of Let out Property Amount (Rs.)

”‘••—ƒŽƒŽ—‡ xxx
‡••ǣ‡†—…–‹‘—Ȁ•ʹ͵ȋͳȌˆ‘”—‹…‹’ƒŽƒš‡• ȋšššȌ
ȋ–‘–Š‡‡š–‡–ƒ…–—ƒŽŽ›’ƒ‹†ƒ†„‘”‡„›–Š‡‘™‡”†—”‹‰’”‡˜‹‘—•›‡ƒ”Ȍ
‡–—ƒŽƒŽ—‡ xxx
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘—Ȁ•ʹͶȋƒȌǦ̷͵ͲΨ‘ˆ ȋšššȌ
‡†—…–‹‘ˆ‘”–‡”‡•–‘‘””‘™‡†ƒ’‹–ƒŽ—Ȁ•ʹͶȋ„Ȍ ȋšššȌ
…‘‡ ”‘‘—•‡”‘’‡”–› xxx
B) Computation of Income in case of Self Occupied Property

”‘••—ƒŽƒŽ—‡ xxx
‡••ǣ‡†—…–‹‘ ‘”—‹…‹’ƒŽƒš‡• ȋšššȌ
ȋ‡˜‡‹ˆ’ƒ‹†ƒ†„‘”‡„›–Š‡‘™‡”†—”‹‰’”‡˜‹‘—•›‡ƒ”Ȍ
‡–—ƒŽƒŽ—‡       xxx
‡••ǣ‡†—…–‹‘—Ȁ•ʹͶȋƒȌ–ƒ†ƒ”†‡†—…–‹‘     ȋšššȌ
‡••ǣ‡†—…–‹‘—Ȁ•ʹͶȋ„Ȍˆ‘”–‡”‡•–‘‘””‘™‡†ƒ’‹–ƒŽ ȋšššȌ
…‘‡Ȁ‘••ˆ”‘‘—•‡”‘’‡”–›     xxx

Illustration 9:
‹Š‹ŽŠƒ•ƒ’”‘’‡”–›™Š‘•‡—‹…‹’ƒŽƒŽ—ƒ–‹‘‹•ͷͲͲǡͲͲͲ’ƒǤŠ‡ ƒ‹”‡–‘ˆ–Š‡’”‘’‡”–›‹•ͶͲͲǡͲͲͲ
’ƒƒ†–Š‡–ƒ†ƒ”†‡–ϐ‹š‡†„›‡–‘–”‘Ž…–‹•ͶͷͲǡͲͲͲ’ƒǤŠ‡’”‘’‡”–›™ƒ•Ž‡–‘—–ˆ‘”ƒ‡–‘ˆ
͵ͷͲͲͲ’ƒ†–Š‡–‡ƒ–˜ƒ…ƒ–‡†–Š‡•ƒ‡‘͵ͳ•– ƒʹͲʹʹǤ”‡ƒŽ‹•‡†‡–™ƒ•͵ͷͲͲͲƒ†–Š‡…‘†‹–‹‘•
ƒ”‡ˆ—Žϐ‹Ž‡†™‹–Š”‡•’‡…––‘–Š‡•ƒ‡Ǥ‡’ƒ‹†—‹…‹’ƒŽ–ƒš‡•™‘”–ŠͳͷͲͲͲ†—”‹‰–Š‡ƒ†–Š‡–‡”‡•–
‘‘ƒ™ƒ•͸ͲͲͲͲǤŽ‡ƒ•‡‡šŠ‹„‹––Š‡…‘’—–ƒ–‹‘ƒ†ƒ†˜‹•‡–Š‡‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›Ǥ

Solution:

Computation of GAV (Gross Annual Value) INR INR

ER (Expected Rent)
‹‰Š‡”‘ˆǣ
1) Fair Rent ͶǡͲͲǡͲͲͲ
2) Municipal Value ͷǡͲͲǡͲͲͲ
‹‹–‡†–‘–ƒ†ƒ”†‡– ͶǡͷͲǡͲͲͲ
AR (Actual Rent) ͵ǡͷͲǡͲͲͲ
‡••ǣ”‡ƒŽ‹•‡†‡– ȋ͵ͷǡͲͲͲȌ
͵ǡͳͷǡͲͲͲ
Lesson 4 Ȉ Part II – Income under the head House Property 169

GAV (as falls Vacant) ͵ǡͳͷǡͲͲͲ

‡••ǣ—‹…‹’ƒŽƒš‡•’ƒ‹†„›–Š‡‘™‡”†—”‹‰–Š‡ ȋͳͷǡͲͲͲȌ
NAV (Net Annual Value) 3,00,000
Less: Deductions u/s 24
͵ͲΨ ͻͲǡͲͲͲ
–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ ͸ͲǡͲͲͲ
ȋͳǡͷͲǡͲͲͲȌ
Income from House Property 1,50,000

Illustration10 :
–ǤŠƒ–‹‡˜‹Šƒ•ƒŠ‘—•‡’”‘’‡”–›‹‘Žƒ–ƒǤŠ‡—‹…‹’ƒŽƒŽ—ƒ–‹‘ˆ‘”–Š‡•ƒ‡‹•ͳͲǡͲͲǡͲͲͲǤŠ‡
ƒ‹”‡–ƒŽˆ‘”–Š‡’”‘’‡”–›‹•͹ͷͲǡͲͲͲǤŠ‡–ƒ†ƒ”†‡–’‡”–Š‡‡–‘–”‘Ž…–‹•ͺͲͲǡͲͲͲǤŠ‡Ž‡–
‘—––Š‡’”‘’‡”–›—–‹Ž͵Ͳ–Š‘˜ǯʹͳˆ‘”ƒ‘–ŠŽ›”‡–‘ˆ•Ǥ͹ͷǡͲͲͲ’‡”‘–ŠǤŠ‡”‡ƒˆ–‡”ǡ–Š‡–‡ƒ–˜ƒ…ƒ–‡†–Š‡
’”‘’‡”–›ƒ†•Š‡—•‡†–Š‡Š‘—•‡ˆ‘”•‡ŽˆǦ‘……—’ƒ–‹‘Ǥ‡–ˆ‘”–Š‡‘–Š•‘ˆ…–Ƭ‘˜ʹͳ…‘—Ž†ǯ–„‡”‡ƒŽ‹•‡†
†‡•’‹–‡ƒŽŽ‡ˆˆ‘”–•ǡƒ†ƒŽŽ–Š‡…‘†‹–‹‘•ˆ‘”—”‡ƒŽ‹•‡†”‡–™‡”‡•ƒ–‹•ϐ‹‡†ǤŠ‡’ƒ‹†—‹…‹’ƒŽƒš‡•̷ͳʹΨ
†—”‹‰–Š‡›‡ƒ”ǤŠ‡ƒŽ•‘’ƒ‹†–‡”‡•–‘ˆʹͷǡͲͲͲ†—”‹‰–Š‡›‡ƒ”ˆ‘”ƒ‘—–„‘””‘™‡†ˆ‘””‡’ƒ‹”•Ǥ‘’—–‡
–Š‡…‘‡ˆ”‘‘—•‡”‘’‡”–›ˆ‘”ʹͲʹʹǦʹ͵Ǥ
Solution:

Computation of GAV INR INR

ER
‹‰Š‡”‘ˆǣ
ͳȌ ƒ‹”‡– ͹ǡͷͲǡͲͲͲ
ʹȌ—‹…‹’ƒŽƒŽ—‡ ͳͲǡͲͲǡͲͲͲ
‹‹–‡†–‘–ƒ†ƒ”†‡–
Annual Rent ͸ǡͲͲǡͲͲͲ ͺǡͲͲǡͲͲͲ
‡••ǣ”‡ƒŽ‹•‡†‡– ȋͳǡͷͲǡͲͲͲȌ ͶǡͷͲǡͲͲͲ
GAV (partly let out and partly self occupied) ͺǡͲͲǡͲͲͲ

‡••ǣ—‹…‹’ƒŽƒš‡•’ƒ‹†„›–Š‡‘™‡”†—”‹‰–Š‡ ͳǡʹͲǡͲͲͲ
NAV 6,80,000
Less: Deductions u/s 24
͵ͲΨ ʹǡͲͶǡͲͲͲ
–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ ʹͷǡͲͲͲ ȋʹǡʹͻǡͲͲͲȌ
Income from House Property 4,51,000

Inadmissible Deductions (Section 25)

Ȉ –‡”‡•–—†‡”–Š‡…–ǡ™Š‹…Š‹•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒǡ•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†

ƒ•ƒ†‡†—…–‹‘ǡ‹ˆ–ƒšŠƒ•‘–„‡‡†‡†—…–‡†ˆ”‘•—…Š–‡”‡•–ƒ†–Š‡”‡
‹•‘’‡”•‘‹†‹ƒǡ™Š‘…‘—Ž†„‡–”‡ƒ–‡†ƒ•ƒƒ‰‡–Ǥ
170 Lesson 4 Ȉ EP-TL

”‡ƒ–‡–‘ˆ”‡ƒŽ‹œ‡†‡–Ȁ””‡ƒ”‘ˆ‡–ȋ‡…–‹‘ʹͷȌ

Ȉ ””‡ƒ”• ‘ˆ ‡– ƒ† –Š‡ —”‡ƒŽ‹•‡† ”‡– ”‡…‡‹˜‡† •—„•‡“—‡–Ž› ˆ”‘ ƒ –‡ƒ– „› ƒ
ƒ••‡••‡‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡ˆ”‘‘—•‡”‘’‡”–›‹–Š‡ ‹™Š‹…Š•—…Š
”‡–ƒŽ‹•”‡…‡‹˜‡†ƒ†•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡…‘‡ˆ”‘‘—•‡”‘’‡”–›‘ˆ–Šƒ–›‡ƒ”Ǣ
‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”Š‡‹•–Š‡‘™‡”‘ˆ–Š‡’”‘’‡”–›ƒ›‘”‡‘”‘–ǡ‹–Šƒ– Ǥ
Ȉ ͵ͲΨ‘ˆ•—…Šƒ””‡ƒ”•‘”—”‡ƒŽ‹•‡†”‡–”‡…‡‹˜‡†•—„•‡“—‡–Ž›‹•ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘Ǥ

Income from Co-Owned Property (Section 26)

Ȉ Š‡•Šƒ”‡‘ˆ‡ƒ…Š…‘Ǧ‘™‡”•Š‘—Ž†„‡†‡–‡”‹‡†‹ƒ……‘”†ƒ…‡™‹–Š‡…–‹‘ʹʹȂʹͷ
ƒ†‹…Ž—†‡†‹–Š‡”‡•’‡…–‹˜‡‹†‹˜‹†—ƒŽƒ••‡••‡–•Ǥ
Ȉ ƒ•…‡ƒ”‹‘ǡ™Š‡”‡–Š‡Š‘—•‡’”‘’‡”–›‘™‡†„›…‘Ǧ‘™‡”•‹••‡ŽˆǦ‘……—’‹‡†„›–Š‡ǡ
–Š‡  ˆ‘” ‡ƒ…Š ‘ˆ –Š‡ ™‹ŽŽ „‡ …‘•–”—‡† ƒ• Ǥ ƒ…Š ‘Ǧ™‡” •ŠƒŽŽ „‡ ƒŽŽ‘™‡† ƒ
†‡†—…–‹‘‘ˆ͵ͲͲͲͲȀʹͲͲǡͲͲͲƒ•–Š‡…ƒ•‡ƒ›„‡˜‹•ǦǦ˜‹•–‡”‡•–‘‘””‘™‡†
ƒ’‹–ƒŽǤȏ”‘˜‹†‡†‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷȐ
Ȉ ƒ•…‡ƒ”‹‘ǡ™Š‡”‡–Š‡Š‘—•‡’”‘’‡”–›‘™‡†„›–Š‡…‘Ǧ‘™‡”•‹•Ž‡–‘—–ǡ–Š‡‹…‘‡
ˆ”‘ –Š‡ ’”‘’‡”–› ™‹ŽŽ „‡ …‘’—–‡† ƒ• ‹ˆ –Š‡ ’”‘’‡”–› ‹• ‘™‡† „› ‘‡ ‘™‡”ǡ ƒ†
–Š‡”‡ƒˆ–‡”•—…Š…‘’—–‡†‹…‘‡™‘—Ž†„‡ƒ’’‘”–‹‘‡†ƒ‘‰•–‡ƒ…Š‘ˆ–Š‡ƒ•’‡”
–Š‡‹””‡•’‡…–‹˜‡•Šƒ”‡Ǥ

DEEMED OWNERSHIP [SECTION 27]

 Lesson 4 Ȉ Part II – Income under the head House Property 171

HOUSE PROPERTY INCOMES – EXEMPTED FROM TAX

Š‡”‡ ƒ”‡ …‡”–ƒ‹ …ƒ•‡• ™Š‡”‡ –Š‡ ‹…‘‡ ˆ”‘ –Š‡ Š‘—•‡ ’”‘’‡”–› ƒ”‡ –ƒšǦˆ”‡‡Ǥ Š‡› ƒ”‡ ‡‹–Š‡” –ƒšƒ„Ž‡ ‘”
‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡ˆ‘”–ƒšƒ–‹‘ǤŠ‡‹…‘‡•–Šƒ–ƒ”‡‡š‡’–‡†ˆ”‘–ƒšƒ”‡†‡•…”‹„‡†„‡Ž‘™Ǥ
ͳǤ Š‡ ”‡˜‡—‡ ‰‡‡”ƒ–‡† ˆ”‘ –Š‡ „—‹Ž†‹‰• ‹ ƒ† ƒ”‘—† –Š‡ ƒ‰”‹…—Ž–—”ƒŽ Žƒ† –Šƒ– ˆ‘”• ƒ ’ƒ”– ‘ˆ
ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡‹•‡š‡’–‡†ˆ”‘–ƒšƒ•’‡”•‡…–‹‘ͳͲȋͳȌǤ‰Ǥ‡–‹‰‘”Ž‡ƒ•‹‰‘ˆƒˆƒ”Š‘—•‡ǡ
•–‘”‡Š‘—•‡Ǥ
ʹǤ …‘‡ˆ”‘’”‘’‡”–›…‘ϐ‹‡†–‘Ž‘…ƒŽƒ—–Š‘”‹–‹‡•‹•–ƒšǦ‡š‡’–‡†ƒ•’‡”•‡…–‹‘ͳͲȋʹͲȌǤ
͵Ǥ ‘—•‡’”‘’‡”–›‹…‘‡‘ˆƒ’‘Ž‹–‹…ƒŽ’ƒ”–›‹•ˆ”‡‡ˆ”‘–ƒš—†‡”•‡…–‹‘ͳ͵Ǥ
ͶǤ ‡˜‡—‡‡ƒ”‡†ˆ”‘ƒ’”‘’‡”–›„‡Ž‘‰‹‰–‘ƒƒ’’”‘˜‡†•…‹‡–‹ϐ‹…”‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘‹•‡š‡’–‡†ˆ”‘
–ƒš—†‡”•‡…–‹‘ͳͲȋʹͳȌǤ
ͷǤ ”‘’‡”–›‹…‘‡‘ˆ‡†—…ƒ–‹‘ƒŽ‘”‰ƒ‹œƒ–‹‘•ǡ‡†‹…ƒŽ‹•–‹–—–‹‘•ƒ”‡ˆ”‡‡ˆ”‘–ƒšƒ•’‡”•‡…–‹‘ͳͲȋʹ͵ȌǤ
͸Ǥ …‘‡ˆ”‘’”‘’‡”–›•—„Œ‡…–‡†–‘…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡‹•–ƒšǦ‡š‡’–‡†ƒ•’‡”•‡…–‹‘ͳͳǤ
͹Ǥ ”‘’‡”–›‹…‘‡‘ˆ‡”–‹ϐ‹‡†–”ƒ†‡—‹‘‹•‡š‡’–‡†ˆ”‘–ƒš—†‡”•‡…–‹‘ͳͲȋʹͶȌǤ
ͺǤ Š‡ ƒ—ƒŽ ˜ƒŽ—‡ ‘ˆ ‘‡ ’ƒŽƒ…‡ ’‘••‡••‡† „› ƒ ‡šǦ”—Ž‡” ‘ˆ †‹ƒ •–ƒ–‡• ‹• ˆ”‡‡ ˆ”‘ –ƒš ƒ• ’‡” •‡…–‹‘
ͳͲȋͳͻȌ™Š‡”‡‘–Š‡”’ƒŽƒ…‡•…‘‡—†‡”–ƒšƒ–‹‘Ǥ
ͻǤ Š‡ ƒ—ƒŽ ˜ƒŽ—‡ ‘ˆ –™‘ •‡ŽˆǦ‘……—’‹‡† ’”‘’‡”–‹‡• ˆ‘” ‘™ ”‡•‹†‡…‡ ‹• ‡š‡’–‡† ˆ”‘ –ƒš —†‡” •‡…–‹‘
ʹ͵ȋʹȌǤ
ͳͲǤ …‘‡ˆ”‘’”‘’‡”–›—•‡†ˆ‘”‘‡ǯ•‘™„—•‹‡••‘”’”‘ˆ‡••‹‘‹•ƒŽ•‘–ƒšǦ‡š‡’–‡†—†‡”•‡…–‹‘ʹʹǤ

Concept of Composite Rent

Ȉ ”‘’‡”–›‹•Ž‡–‘—–„›–Š‡••‡••‡‡Ǥ
Ȉ ‘‰‡–Š‡”™‹–Š‡”˜‹…‡• ȋ‡Ǥ‰Ǥ‡Ž‡…–”‹…‹–›ǡ‰ƒ•ǡ™ƒ–‡”‡–…ǤȌ‘”••‡–•ȋ‡Ǥ‰’Žƒ–ǡƒ…Š‹‡”›‘”ˆ—”‹–—”‡ȌǤ
Ȉ ‡–…Šƒ”‰‡†„›–Š‡ƒ••‡••‡‡‹•ƒ…‘•‘Ž‹†ƒ–‡†•—ȋ‹Ǥ‡Ǥ‡–ˆ‘”’”‘’‡”–›Ϊ‡–ˆ‘”•‡”˜‹…‡•Ȁƒ••‡–•ȌǤ
Treatment of Composite Rent is done as under:

Š‡”‡”‡–‘ˆ’”‘’‡”–›ƒ†”‡–‘ˆ•‡”˜‹…‡•Ȁƒ••‡–•…ƒ„‡ Š‡”‡”‡–‘ˆ’”‘’‡”–›ƒ†”‡–‘ˆ•‡”˜‹…‡•Ȁ
•‡’ƒ”ƒ–‡† ƒ••‡–•…ƒ‘–„‡•‡’ƒ”ƒ–‡†

‡–‘ˆŽ‡––‹‰‘ˆ’”‘’‡”–› ‡–‘ˆ•‡”˜‹…‡ǡƒ••‡–• ƒšƒ„Ž‡—†‡”–Š‡”•‘—”…‡•‘”—•‹‡••

ƒšƒ„Ž‡—†‡”‘—•‡ ƒšƒ„Ž‡—†‡”–Š‡”•‘—”…‡•‘”
’”‘’‡”–› „—•‹‡••
172 Lesson 4 Ȉ EP-TL

Illustration 11:

™‘•‹•–‡”•ǡ‡‡ƒƒ†ƒ•Š‹ǡƒ”‡…‘Ǧ‘™‡”•‘ˆƒŠ‘—•‡’”‘’‡”–›ǡ™‹–ŠͷͲΨ•Šƒ”‡‡ƒ…Š‹–Š‡’”‘’‡”–›ǤŠ‡
’”‘’‡”–›™ƒ•…‘•–”—…–‡†’”‹‘”–‘ͳ•–’”‹ŽͳͻͻͻǤŠ‡’”‘’‡”–›Šƒ•͹‡“—ƒŽ—‹–•ƒ†‹••‹–—ƒ–‡†‹ƒ‰ƒŽ‘”‡Ǥ
—”‹‰–Š‡ ʹͲʹͳǦʹʹǡ‡ƒ…Š…‘Ǧ‘™‡”‘……—’‹‡†‘‡—‹–‡ƒ…Šƒ†–Š‡„ƒŽƒ…‡™‡”‡Ž‡–‘—–ƒ–ƒ”‡–ƒŽ‘ˆ
ʹͲͲͲͲ’‡”—‹–’‡”‘–ŠǤŠ‡—‹…‹’ƒŽƒŽ—ƒ–‹‘ȋȌ™ƒ•͹ǡͲͲǡͲͲͲƒ†–Š‡—‹…‹’ƒŽƒš‡•™‡”‡̷
ͳͲΨ‘ˆ–Š‡Ǥ–‡”‡•–’ƒ›ƒ„Ž‡‘Ž‘ƒ–ƒ‡ˆ‘”…‘•–”—…–‹‘™ƒ•ͶͲͲǡͲͲͲǤ‡‘ˆ–Š‡Ž‡–Ǧ‘—–—‹–•™ƒ•
˜ƒ…ƒ–ˆ‘”͸‘–Š•‹–Š‡›‡ƒ”Ǥ
‘’—–‡–Š‡…‘‡ˆ”‘‘—•‡”‘’‡”–›ˆ‘”‡ƒ…Š‘ˆ–Š‡•‹•–‡”•Ǥ••—‹‰–Š‡›Šƒ˜‡‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ
Solutions:

Computation of GAV INR INR

•–‹ƒ–‡†‡–
‹‰Š‡”‘ˆǣ
ͳȌ ƒ‹”‡– Ǧ
ʹȌ—‹…‹’ƒŽƒŽ—‡ ͷǡͲͲǡͲͲͲ
‹‹–‡†–‘–ƒ†ƒ”†‡– ͷǡͲͲǡͲͲͲ
Annual Rent ͳʹǡͲͲǡͲͲͲ
‡••ǣ”‡ƒŽ‹•‡†‡– ȋͳǡʹͲǡͲͲͲȌ
ͳͲǡͺͲǡͲͲͲ
GAV (partly let out and partly self occupied) ͳͲǡͺͲǡͲͲͲ
‡••ǣ—‹…‹’ƒŽƒš‡•’ƒ‹†„›–Š‡‘™‡”†—”‹‰–Š‡ ȋͷͲǡͲͲͲȌ
NAV ͳͲǡ͵ͲǡͲͲͲ
Less: Deductions u/s 24
͵ͲΨ ͵ǡͲͻǡͲͲͲ
–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ ʹǡͺͷǡ͹ͳͶ
ȋͷǡͻͶǡ͹ͳͶȌ
Income from House Property 4,35,286
Šƒ”‡‘ˆ‡ƒ…Š‘Ǧ‘™‡” ʹǡͳ͹ǡ͸Ͷ͵
‘••ˆ”‘‘—•‡”‘’‡”–›ȋ•‡Žˆ‘……—’‹‡†’‘”–‹‘•Ȍ ȋ͵ͲǡͲͲͲȌ
Income from House Property (each co-owner) 1,87,643
Notes:
ͳȌ „•‡”˜‡–Šƒ––Š‡…‘’—–ƒ–‹‘Šƒ•„‡‡†‘‡ˆ‘”–Š‡ͷŽ‡–‘—–ƒ†ʹ•‡ŽˆǦ‘……—’‹‡†’‘”–‹‘••‡’ƒ”ƒ–‡Ž›ƒ†
…‘‡•—”ƒ–‡Ž›Ǥ
ʹȌ ‘–‡–Šƒ––Š‡–‡”‡•–‘‘””‘™‡†ƒ’‹–ƒŽˆ‘”Ž‡–‘—–’”‘’‘”–‹‘•‹•ˆ—ŽŽ›ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘™‹–Š‘—–
ƒ›…ƒ’Ǥ
͵Ȍ ‘–‡–Šƒ––Š‡ˆ‘”–Š‡‡Žˆ……—’‹‡†‘”–‹‘‹•ƒ†–Š‡–‡”‡•–‘‘””‘™‡†ƒ’‹–ƒŽ‹•”‡•–”‹…–‡†–‘
͵ͲǡͲͲͲˆ‘”‡ƒ…Š…‘Ǧ‘™‡”Ǥ

Illustration 12:
”Ǥ‹•–Š‡‘™‡”‘ˆˆ‘—”Š‘—•‡•ǤŠ‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡ǣ

Particulars House 1 House 2 House 3 House 4

—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘ ͳ͸ǡͲͲͲ ʹͲǡͲͲͲ ʹͶǡͲͲͲ ͷǡ͸ͲͲ
‡–ȋ…–—ƒŽȌ — ͳͶǡͲͲͲ ʹͲǡͲͲͲ ͸ǡͺͲͲ
Lesson 4 Ȉ Part II – Income under the head House Property 173

—‹…‹’ƒŽ–ƒš‡• ͶͲͲ ͳǡͲͲͲ ͳǡʹͲͲ ͵ͲͲ

‡’ƒ‹”•ƒ†…‘ŽŽ‡…–‹‘…Šƒ”‰‡• ʹͲͲ ʹǡͷͲͲ ͳǡͲͶͲ Ͷ͸Ͳ
–‡”‡•–‘‘”–‰ƒ‰‡ — — — ͳǡͲͲͲ

”‘—†”‡– — ͳͲͲ — ͸Ͳ
‹”‡’”‡‹— ͳͶͲ — ʹͲͲ —
—ƒŽ…Šƒ”‰‡• — — ͵͸Ͳ —
‘—•‡‘Ǥͳ‹••‡ŽˆǦ‘……—’‹‡†Ǥ
‘—•‡‘Ǥʹ‹•Ž‡–‘—–ˆ‘”„—•‹‡••ǡ…‘•–”—…–‹‘™ƒ•…‘’Ž‡–‡†‘ͳǤ͵Ǥͻͳƒ†…‘•‹•–•‘ˆ–™‘”‡•‹†‡–‹ƒŽ—‹–•Ǥ
‘—•‡‘Ǥ͵‹•͵ȀͶ—•‡†ˆ‘”‘™„—•‹‡••ͳȀͶŽ‡–‘—––‘–Š‡ƒƒ‰‡”‘ˆ–Š‡„—•‹‡••Ǥ
‘—•‡‘ǤͶ‹•Ž‡–‘—–ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•Ǥ
‹•‘–Š‡”‹…‘‡‹••Ǥ͵ͲǡͲͲͲǤ ‹†‘—––Š‡‹…‘‡‘ˆˆ”‘Š‘—•‡’”‘’‡”–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
••—‹‰Š‡Šƒ•‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ
Solution:
House No. 1           (Rs.)

—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘ ͳ͸ǡͲͲͲ
—ƒŽƒŽ—‡†‡‡‡† 

House No. 2 (Rs.)

ƒ‹””‡–ƒŽ˜ƒŽ—‡ ʹͲǡͲͲͲ
‡••ǣ—‹…‹’ƒŽ–ƒš‡• ͳǡͲͲͲ
‡–—ƒŽƒŽ—‡ ͳͻǡͲͲͲ
‡••ǣ͵ͲΨ‘ˆ‡–—ƒŽƒŽ—‡ ȋͷǡ͹ͲͲȌ
ͳ͵ǡ͵ͲͲ
House No. 3
‹…‡–Š‡Š‘—•‡‹•—•‡†ˆ‘”‘™„—•‹‡••ǡ–Š‡‹…‘‡ˆ”‘–Š‹•Š‘—•‡‹•‘––ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†Ǯ…‘‡ˆ”‘
Š‘—•‡’”‘’‡”–›ǯ„—–™‹ŽŽ„‡ƒ••‡••‡†—†‡”Ǯ”‘ϐ‹–ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ǯǤͳȀͶ‘ˆ–Š‡Š‘—•‡‘……—’‹‡†
„›–Š‡ƒƒ‰‡”‹•’”‡•—‡†–‘„‡‹…‹†‡–ƒŽ–‘–Š‡„—•‹‡••ƒ†Š‡…‡‘–ƒ••‡••ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Ǯ…‘‡
ˆ”‘Š‘—•‡’”‘’‡”–›ǯǤ
House No. 4  (Rs.)

‡–‡…‡‹˜‡† ͸ǡͺͲͲ
‡••ǣ—‹…‹’ƒŽ–ƒš‡• ͵ͲͲ
‡–ƒ—ƒŽƒŽ—‡ ͸ǡͷͲͲ
‡••ǣ͵ͲΨ‘ˆ‡–—ƒŽƒŽ—‡ ȋͳǡͻͷͲȌ
ͶǡͷͷͲ

…‘‡ˆ”‘‘—•‡”‘’‡”–›ǣ•ǤΪ•Ǥͳ͵ǡ͵ͲͲΪ•ǤͶǡͷͷͲα•Ǥͳ͹ǡͺͷͲǤ–‹•’”‡•—‡†–Šƒ–‘—•‡‘ǤͶŠƒ•

‘–„‡‡‘”–‰ƒ‰‡†ˆ‘”’—”’‘•‡•‘ˆƒ…“—‹”‹‰‘””‡’ƒ‹”•‘–Š‡Š‘—•‡’”‘’‡”–›Ǥ
174 Lesson 4 Ȉ EP-TL

Illustration 13:

”ǤƒŽ‹•–Š‡‘™‡”‘ˆƒŠ‘—•‡’”‘’‡”–›Ǥ–•—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘‹••ǤͺͲǡͲͲͲǤ–Šƒ•„‡‡Ž‡–‘—–ˆ‘”•ǤͳǡʹͲǡͲͲͲ

’ǤƒǤŠ‡Ž‘…ƒŽ–ƒš‡•’ƒ›ƒ„Ž‡„›–Š‡‘™‡”ƒ‘—––‘•Ǥͳ͸ǡͲͲͲ„—–ƒ•’‡”ƒ‰”‡‡‡–„‡–™‡‡–Š‡–‡ƒ–ƒ†–Š‡
Žƒ†Ž‘”†ǡ–Š‡–‡ƒ–Šƒ•’ƒ‹†–Š‡ƒ‘—–†‹”‡…––‘–Š‡—‹…‹’ƒŽ‹–›ǤŠ‡Žƒ†Ž‘”†ǡŠ‘™‡˜‡”ǡ„‡ƒ”•–Š‡ˆ‘ŽŽ‘™‹‰
‡š’‡•‡•‘–‡ƒ–ǯ•ƒ‡‹–‹‡•ǣ

Particulars (Rs.)
š–‡•‹‘‘ˆ™ƒ–‡”…‘‡…–‹‘ ͵ǡͲͲͲ
ƒ–‡”…Šƒ”‰‡• ͳǡͷͲͲ
‹ˆ–ƒ‹–‡ƒ…‡ ͳǡͷͲͲ
ƒŽƒ”›‘ˆ‰ƒ”†‡‡” ͳǡͺͲͲ
‹‰Š–‹‰‘ˆ•–ƒ‹”• ͳǡʹͲͲ
ƒ‹–‡ƒ…‡‘ˆ•™‹‹‰’‘‘Ž ͹ͷͲ

Š‡Žƒ†Ž‘”†…Žƒ‹•–Š‡ˆ‘ŽŽ‘™‹‰†‡†—…–‹‘•ǣ

‡’ƒ‹”•ƒ†‘ŽŽ‡…–‹‘…Šƒ”‰‡• ͹ǡͷͲͲ
ƒ†”‡˜‡—‡’ƒ‹† ͳǡͷͲͲ
‘’—–‡–Š‡–ƒšƒ„Ž‡‹…‘‡ˆ”‘–Š‡Š‘—•‡’”‘’‡”–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ

Solution:

‘’—–ƒ–‹‘‘ˆ‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ Rs. Rs.

”‘••ƒ—ƒŽ˜ƒŽ—‡ǣ–‘„‡Š‹‰Š‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘‘” ͺͲǡͲͲͲ
‡ˆƒ…–‘”‡–ȋͳǡʹͲǡͲͲͲŽ‡••˜ƒŽ—‡‘ˆƒ‡‹–‹‡•Ȍ  ͳǡʹͲǡͲͲͲ
‡–‡…‡‹˜‡† ͳǡʹͲǡͲͲͲ
‡••ǣƒŽ—‡‘ˆ–Š‡ƒ‡‹–‹‡•’”‘˜‹†‡†„›–Š‡ƒ••‡••‡‡ǣ
ȋ‹Ȍ š–‡•‹‘‘ˆ™ƒ–‡”…‘‡…–‹‘‘–†‡†—…–‹„Ž‡ƒ•‹–‹•…ƒ’‹–ƒŽ‡š’‡†‹–—”‡ Ȃ
ȋ‹‹Ȍ ƒ–‡”…Šƒ”‰‡• ȋͳͷͲͲȌ
ȋ‹‹‹Ȍ ‹ˆ–ƒ‹–‡ƒ…‡ ȋͳͷͲͲȌ
ȋ‹˜Ȍ ƒŽƒ”›‘ˆ‰ƒ”†‡‡” ȋͳǡͺͲͲȌ
ȋ˜Ȍ ‹‰Š–‹‰‘ˆ•–ƒ‹”• ȋͳǡʹͲͲȌ
ȋ˜‹Ȍ ƒ‹–‡ƒ…‡‘ˆ•™‹‹‰’‘‘Ž ȋ͹ͷͲȌ
ȋ͸ǡ͹ͷͲȌ

”‘••ƒ—ƒŽ˜ƒŽ—‡ ͳǡͳ͵ǡʹͷͲ
‡••ǣ‘…ƒŽ–ƒš•Ǥͳ͸ǡͲͲͲǣ‘†‡†—…–‹‘‹•’‡”‹••‹„Ž‡ƒ•–Š‡–ƒš‡•Šƒ˜‡„‡‡ Ǧ
’ƒ‹†„›–Š‡–‡ƒ–
‡–—ƒŽƒŽ—‡ ͳǡͳ͵ǡʹͷͲ
‡••ǣ–ƒ†ƒ”††‡†—…–‹‘ˆ”‘‡–—ƒŽƒŽ—‡ǣ͵ͲΨ‘ˆ‡–—ƒŽƒŽ—‡ ȋ͵͵ǡͻ͹ͷȌ
…‘‡ˆ”‘‘—•‡”‘’‡”–› ͹ͻǡʹ͹ͷ
Lesson 4 Ȉ Part II – Income under the head House Property 175

Illustration 14:

‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵‘—•—„‹–•–Š‡ˆ‘ŽŽ‘™‹‰‹ˆ‘”ƒ–‹‘ǣ 

…‘‡ˆ”‘„—•‹‡••ȋ•’‡…—Žƒ–‹˜‡Ȍ 40,000
”‘’‡”–›…‘‡ ‘—•‡ ‘—•‡
Rs. Rs.
—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘ ͵ͷǡͲͲͲ ͺͲǡͲͲͲ
‡–”‡…‡‹˜‡† ͵ͺǡͲͲͲ ͸ͺǡͲͲͲ
—‹…‹’ƒŽ–ƒš‡•’ƒ‹†„›–‡ƒ– ͵ǡͲͲͲ ͶǡͲͲͲ
‡’ƒ‹”•’ƒ‹†„›–‡ƒ– ͷͲͲ ͳͺǡͲͲͲ
ƒ†”‡˜‡—‡’ƒ‹† ʹǡͲͲͲ ͳ͸ǡͲͲͲ
•—”ƒ…‡’”‡‹—’ƒ‹† ͷͲͲ ʹǡͲͲͲ
–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽˆ‘”’ƒ›‡–‘ˆ—‹…‹’ƒŽ–ƒš‘ˆŠ‘—•‡’”‘’‡”–› ʹͲͲ ͶͲͲ
ƒ–—”‡‘ˆ‘……—’ƒ–‹‘ ‡–‘—–ˆ‘” ‡–‘—–ˆ‘”
‡•‹†‡…‡ —•‹‡••
ƒ–‡‘ˆ…‘’Ž‡–‹‘‘ˆ…‘•–”—…–‹‘ ͳǤͶǤͳͻͻ͸ ͳǤ͹ǤͳͻͻͶ
‡–‡”‹‡–Š‡–ƒšƒ„Ž‡‹…‘‡‘ˆ‘—ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
Solution:
‘’—–ƒ–‹‘‘ˆƒšƒ„Ž‡…‘‡‘ˆ‘—ˆ‘”••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

‘—•‡ Rs.

”‘••—ƒŽƒŽ—‡ ͵ͺͲͲͲ
‡••ǣ—‹…‹’ƒŽƒš‡•Ǧ‘–†‡†—…–‹„Ž‡•‹…‡’ƒ‹†„›–‡ƒ– 
‡–—ƒŽƒŽ—‡ ͵ͺͲͲͲ
‡••ǣ͵ͲΨ‘ˆ‡–—ƒŽƒŽ—‡ƒšƒ„Ž‡…‘‡ ȋͳͳǡͶͲͲȌ
ʹ͸ǡ͸ͲͲ
‘—•‡

”‘••—ƒŽƒŽ—‡ ͺͲͲͲͲ
‡••ǣƒš‡•Ǧ‘–†‡†—…–‹„Ž‡ǡ’ƒ‹†„›–‡ƒ– 
‡–—ƒŽƒŽ—‡ ͺͲǡͲͲͲ
‡••ǣ͵ͲΨ‘ˆ‡–—ƒŽƒŽ—‡ƒšƒ„Ž‡…‘‡ ȋʹͶǡͲͲͲȌ
ͷ͸ǡͲͲͲ
‘–ƒŽ…‘‡α•Ǥʹ͸ǡ͸ͲͲΪ•Ǥͷ͸ǡͲͲͲΪ•ǤͶͲǡͲͲͲα•Ǥͳǡʹʹǡ͸ͲͲǤ
Noteǣ–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽˆ‘”’ƒ›‡–‘ˆ—‹…‹’ƒŽ–ƒš‹•‘–ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘—†‡”‡…–‹‘ʹͶ
‘ˆ–Š‡…–Ǥ

Illustration 15:
”ǤŠƒ•–ƒ‡ƒŽ‘ƒ‘ˆ•ǤͷǡͲͲǡͲͲͲ‘ͲͳǤͳͲǤͳͻͻͻ̷ͳͲΨ’ǤƒǤˆ‘”…‘•–”—…–‹‘‘ˆƒŠ‘—•‡™Š‹…Š™ƒ•…‘’Ž‡–‡†
‘ͲͳǤͳͲǤʹͲʹͲƒ†–Š‡Š‘—•‡”‡ƒ‹‡†•‡ŽˆǦ‘……—’‹‡†–Š”‘—‰Š‘—––Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤŠ‡ƒ••‡••‡‡Šƒ•
‹…‘‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”›•ǤͶǡͲͲǡͲͲͲǤ”Šƒ•’ƒ‹†Ž‹ˆ‡‹•—”ƒ…‡’”‡‹—‘ˆ•ǤʹͲǡͲͲͲǤ‘’—–‡–ƒš
Ž‹ƒ„‹Ž‹–›ˆ‘”ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
176 Lesson 4 Ȉ EP-TL

Option 1: ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2: ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution: Option 1 Assessee has not opted for Section 115BAC

Particulars Rs.
‡–—ƒŽƒŽ—‡ ‹Ž
‡••ǣ–‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡†—Ȁ•ʹͶȋ„Ȍ ȋ͵ͲǡͲͲͲȌ
‘••—†‡”–Š‡Š‡ƒ†‘—•‡”‘’‡”–› ȋ͵ͲǡͲͲͲȌ
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› ͶǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͵ǡ͹ͲǡͲͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ ȋʹͲǡͲͲͲȌ
‘–ƒŽ…‘‡ ͵ǡͷͲǡͲͲͲ
‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›ƒš‘•Ǥ͵ǡͷͲǡͲͲͲƒ–•Žƒ„”ƒ–‡ ͷǡͲͲͲ
‡••ǣ‡„ƒ–‡—Ȁ•ͺ͹ ȋͷǡͲͲͲȌ
ƒš‹ƒ„‹Ž‹–› ‹Ž
Working Notes:
—””‡–’‡”‹‘†–‡”‡•– ”‘ͲͳǤͲͶǤʹͲʹͳ–‘͵ͳǤͲ͵ǤʹͲʹʹ
ͷǡͲͲǡͲͲͲšͳͲΨα ͷͲǡͲͲͲ
”‹‘”’‡”‹‘†‹–‡”‡•– ”‘ͲͳǤͳͲǤͳͻͻͻ–‘͵ͳǤͲ͵ǤʹͲͳͻ
ͷǡͲͲǡͲͲͲšͳͲΨšʹ͵ͶȀͳʹα ͻǡ͹ͷǡͲͲͲ
•–ƒŽŽ‡–αͻǡ͹ͷǡͲͲͲȀͷα ͳǡͻͷǡͲͲͲ
‘–ƒŽ–‡”‡•–α•ǤͷͲǡͲͲͲΪ•ǤͳǡͻͷͲͲͲαʹǡͶͷǡͲͲͲ—„Œ‡…––‘ƒš‹—•Ǥ͵ͲǡͲͲͲ
Solution: Option 2 Assessee has opted for Section 115BAC

‡–—ƒŽƒŽ—‡ ‹Ž
‡••ǣ–‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡†—Ȁ•ʹͶȋ„Ȍ ȋȌ
…‘‡—†‡”–Š‡Š‡ƒ†‘—•‡”‘’‡”–› ‹Ž
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› ͶǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͶǡͲͲǡͲͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ ȋȌ
‘–ƒŽ…‘‡ ͶǡͲͲǡͲͲͲ
Computation of Tax Liability
ƒš‘•ǤͶǡͲͲǡͲͲͲƒ–•Žƒ„”ƒ–‡ ͹ǡͷͲͲ
‡••ǣ‡„ƒ–‡—Ȁ•ͺ͹ ȋ͹ǡͷͲͲȌ
ƒš‹ƒ„‹Ž‹–› ‹Ž
Lesson 4 Ȉ Part II – Income under the head House Property 177

Illustration 16:
‘Š‹–Šƒ•ƒŠ‘—•‡’”‘’‡”–›‹‡ŽŠ‹™Š‘•‡’ƒ”–‹…—Žƒ”•ƒ”‡ƒ•—†‡”ǣ

Particulars Rs.
—‹…‹’ƒŽ˜ƒŽ—‡ ͶǡͲͲǡͲͲͲ
–ƒ†ƒ”†”‡– ͶǡͷͲǡͲͲͲ
—‹…‹’ƒŽ–ƒš‡•’ƒ‹† ͷͲǡͲͲͲ
–‡”‡•–‘‘‡›„‘””‘™‡†ˆ‘”ƒ…“—‹”‹‰–Š‡Š‘—•‡ ͳǡ͸ͲǡͲͲͲ
‡”‹‘†‘ˆ‘……—’ƒ–‹‘ˆ‘”‘™”‡•‹†‡…‡        ʹ‘–Š•
…–—ƒŽ”‡–ˆ‘”ͳͲ‘–Š•       ͶͷǡͲͲͲ’ǤǤ
‘’—–‡–Š‡‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ƒ••—‹‰Š‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
Solution:
‘’—–ƒ–‹‘‘ˆ‹…‘‡ˆ”‘‘—•‡”‘’‡”–›

”‘••ƒ—ƒŽ˜ƒŽ—‡•ŠƒŽŽ„‡Š‹‰Š‡”‘ˆˆ‘ŽŽ‘™‹‰–™‘
ȋƒȌ š’‡…–‡†”‡–ȋ—‹…‹’ƒŽ˜ƒŽ—‡•ǤͶǡͲͲǡͲͲͲ‘” •ǤͷǡͶͲǡͲͲͲ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”‹Ǥ‡Ǥǡ•ǤͷǡͶͲǡͲͲͲ„—–
”‡•–”‹…–‡†–‘•–ƒ†ƒ”†”‡–‹Ǥ‡Ǥǡ•ǤͶǡͷͲǡͲͲͲȌ     ͶǡͷͲǡͲͲͲ
ȋ„Ȍ …–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡ȋͶͷǡͲͲͲšͳͲȌ    ͶǡͷͲǡͲͲͲ
‡••ǣ—‹…‹’ƒŽ–ƒš‡•’ƒ‹†         ȋͷͲǡͲͲͲȌ
‡–—ƒŽƒŽ—‡        ͶǡͲͲǡͲͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ʹͶ 
ȋƒȌ –ƒ–—–‘”›†‡†—…–‹‘̷͵ͲΨ      ȋͳǡʹͲǡͲͲͲȌ
ȋ„Ȍ –‡”‡•–‘‘‡›„‘””‘™‡†ˆ‘”ƒ…“—‹•‹–‹‘Š‘—•‡•    ȋͳǡ͸ͲǡͲͲͲȌ
…‘‡ˆ”‘‘—•‡”‘’‡”–› ͳǡʹͲǡͲͲͲ

Illustration 17:
”ƒƒ•Š‘™•ƒŠ‘—•‡’”‘’‡”–›‹‡ŽŠ‹™Š‹…Š‹•Ž‡–‘—–ˆ‘”•ǤͳͷǡͲͲͲ’ǤǤŠ‡—‹…‹’ƒŽ˜ƒŽ—‡‘ˆ™Š‹…Š‹••Ǥ
ʹǡͲͲǡͲͲͲƒ†—‹…‹’ƒŽ–ƒš‡•™‡”‡ʹͲΨ‘ˆ—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘Ǥ‡’ƒ‹††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”—‹…‹’ƒŽ–ƒš
‘ˆ͸›‡ƒ”™Š‹…Š”‡Žƒ–‡–‘’ƒ•–ͷ›‡ƒ”•ƒ•™‡ŽŽƒ•ˆ‘”–Š‡…—””‡–›‡ƒ”ǤŠ‡‘–Š‡”‡š’‡•‡•‘ˆ–Š‡’”‘’‡”–›™‡”‡ƒ•
—†‡”ǣ         •Ǥ
‡’ƒ‹”            ͺǡͲͲͲ
•—”ƒ…‡’”‡‹—          ͶǡͲͲͲ
–‡”‡•–ˆ‘”’—”…Šƒ•‡‘ˆŠ‘—•‡         ʹͷǡͲͲͲ

”‘—†”‡–†—‡         ͶǡͲͲͲ

‘’—–‡‹…‘‡‘ˆ”ƒƒ•Šˆ”‘Š‘—•‡’”‘’‡”–›ƒ••—‹‰Š‡Šƒ•‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš
…–ǡͳͻ͸ͳǤ
178 Lesson 4 Ȉ EP-TL

Solution:

”‘••—ƒŽ˜ƒŽ—‡Š‹‰Š‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰–™‘       •Ǥ
ȋƒȌš’‡…–‡†”‡–       ʹǡͲͲǡͲͲͲ
ȋ„Ȍ…–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡     ͳǡͺͲǡͲͲͲ
Š‡”‡ˆ‘”‡ǡ
”‘••—ƒŽƒŽ—‡      ʹǡͲͲǡͲͲͲ
‡••—‹…‹’ƒŽ–ƒš‡•’ƒ‹†     ȋʹǡͶͲǡͲͲͲȌ
‡–ƒ—ƒŽ˜ƒŽ—‡       ȋͶͲǡͲͲͲȌ
‡••‡†—…–‹‘—Ȁ•ʹͶ     
ȋƒȌ–ƒ–—–‘”›†‡†—…–‹‘̷͵ͲΨ      ‹Ž
ȋ„Ȍ–‡”‡•–       ȋʹͷǡͲͲͲȌ
…‘‡ˆ”‘‘—•‡”‘’‡”–›  ȋ͸ͷǡͲͲͲȌ

CASE LAWS
ͳǤ Would income from letting out of properties by a company, whose main object as per its memorandum
of association is to acquire and let out properties, be taxable as its business income, or as income from
house property, considering the fact that the entire income of the company as per its return of income
was only from letting out of properties?

Chennai Properties and Investments Ltd. v. CIT (2015) (SC)

Š‡—’”‡‡‘—”–‘’‹‡†–Šƒ––Š‡Œ—†‰‡–‹ƒ”ƒ’—”ƒ‡˜‡Ž‘’‡–‘Ǥ–†Ǥǯ•…ƒ•‡•“—ƒ”‡Ž›ƒ’’Ž‹‡†–‘–Š‡
ˆƒ…–•‘ˆ–Š‡’”‡•‡–…ƒ•‡ǡ™Š‡”‡Ž‡––‹‰‘ˆ–Š‡’”‘’‡”–‹‡•‹•‹ˆƒ…––Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡ǤŠ‡ƒ‹‘„Œ‡…–‹˜‡
‘ˆ–Š‡…‘’ƒ›ƒ•’‡”‹–•‡‘”ƒ†—‘ˆƒ••‘…‹ƒ–‹‘‹•–‘ƒ…“—‹”‡ƒ†Š‘Ž†’”‘’‡”–‹‡•‹Š‡ƒ‹ƒ†Ž‡–‘—–
–Š‡•‡’”‘’‡”–‹‡•ǤŠ‡”‡ˆ‘”‡ǡŠ‘Ž†‹‰‘ˆ–Š‡’”‘’‡”–‹‡•ƒ†‡ƒ”‹‰‹…‘‡„›Ž‡––‹‰‘—––Š‡•‡’”‘’‡”–‹‡•‹•–Š‡
ƒ‹‘„Œ‡…–‹˜‡‘ˆ–Š‡…‘’ƒ›Ǥ —”–Š‡”ǡ‹–Š‡”‡–—”‘ˆ‹…‘‡ϐ‹Ž‡†„›–Š‡…‘’ƒ›ƒ†ƒ……‡’–‡†„›–Š‡ǡ–Š‡
‡–‹”‡‹…‘‡‘ˆ–Š‡…‘’ƒ›…‘’”‹•‡†‘ˆ‹…‘‡ˆ”‘Ž‡––‹‰‘—–‘ˆ•—…Š ’”‘’‡”–‹‡•ǤŠ‡—’”‡‡‘—”–ǡ
ƒ……‘”†‹‰Ž›ǡŠ‡Ž†–Šƒ––Š‡ƒ••‡••‡‡Šƒ†”‹‰Š–Ž›†‹•…Ž‘•‡†–Š‡‹…‘‡†‡”‹˜‡†ˆ”‘Ž‡––‹‰‘—–‘ˆ•—…Š’”‘’‡”–‹‡•
—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ
2. Income from letting of warehouse whether would constitute Business or Property Income Nutan
Warehousing Company Limited v. Dy. Commissioner of Income Tax [2010] [326 ITR 94, Mumbai]
Š‡“—‡•–‹‘„‡ˆ‘”‡–Š‡‘„ƒ›‹‰Š‘—”–™ƒ•™Š‡–Š‡”–Š‡‹…‘‡ˆ”‘™ƒ”‡Š‘—•‹‰ƒ…–‹˜‹–›”‡…‡‹˜‡†„›–Š‡
ƒ••‡••‡‡™ƒ•ƒ••‡••ƒ„Ž‡ƒ•Dz…‘‡ˆ”‘‘—•‡”‘’‡”–›dz‘”Dz…‘‡ˆ”‘—•‹‡••dzǡ–Š‡‹‰Š‘—”–Š‡Ž†–Šƒ–
–Š‡“—‡•–‹‘Šƒ•–‘„‡”‡•‘Ž˜‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡™‡ŽŽ•‡––Ž‡††‡…‹•‹‘•Žƒ‹††‘™„›–Š‡ƒ™‹†‡…‹†‡†…ƒ•‡•Ǥ
Š‡’”‹ƒ”›‘„Œ‡…–‘ˆ–Š‡ƒ••‡••‡‡™Š‹Ž‡‡š’Ž‘‹–‹‰–Š‡’”‘’‡”–›‹•ƒ–‡”‹ƒŽǤˆ–Š‡†‘‹ƒ–‹–‡–‹‘–‘‡š’Ž‘‹–
…‘‡”…‹ƒŽƒ••‡–„›…ƒ””›‹‰‘ƒ…‘‡”…‹ƒŽƒ…–‹˜‹–›ǡ–Š‡‹…‘‡™‘—Ž†„‡–”‡ƒ–‡†ƒ•…‘‡ˆ”‘—•‹‡••
ƒ† ™Š‡–Š‡” Ž‡––‹‰ ‘—– ‘ˆ –Š‡ ’”‘’‡”–› …‘•–‹–—–‡• ƒ †‘‹ƒ– ƒ•’‡…– ‘ˆ –Š‡ –”ƒ•ƒ…–‹‘ ‘” ™Š‡–Š‡” ‹– ™ƒ•
•—„•‡”˜‹‡––‘–Š‡ƒ‹„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡Ǥ
–Š‡ˆƒ…–•‘ˆ–Š‡…ƒ•‡„‡ˆ‘”‡–Š‡‘”†•Š‹’‹–™ƒ•ˆ‘—†–Šƒ––Š‡–”ƒ•ƒ…–‹‘•‘ˆ–Š‡™ƒ”‡Š‘—•‹‰ƒ‰”‡‡‡–•
™‡”‡ ‘– …‘•‹†‡”‡† „› –Š‡ ”‹„—ƒŽǤ ‡”‡Ž› •–›Ž‹‰ ƒ ƒ‰”‡‡‡– ƒ• ™ƒ”‡Š‘—•‹‰ ƒ‰”‡‡‡– ™‘—Ž† ‘– „‡
…‘…Ž—•‹˜‡‘ˆ–Š‡ƒ–—”‡‘ˆ–Š‡–”ƒ•ƒ…–‹‘ǤŠ‡“—‡•–‹‘–Šƒ–‹•–‘„‡ƒ•™‡”‡†„›–Š‡”‹„—ƒŽǡ‹–™ƒ•‘–‡†ǡ
™Š‡–Š‡”–Š‡–”ƒ•ƒ…–‹‘™ƒ•ƒ„ƒ”‡Ž‡––‹‰‘—–‘ˆ–Š‡ƒ••‡–‘”™Š‡–Š‡”–Š‡ƒ••‡••‡‡™ƒ•…ƒ””›‹‰‘ƒ…‘‡”…‹ƒŽ
ƒ…–‹˜‹–›‹˜‘Ž˜‹‰™ƒ”‡Š‘—•‹‰‘’‡”ƒ–‹‘•ǤŠ‡ƒ––‡”™ƒ•”‡ƒ†‡†–‘…‘•‹†‡”–Š‡•‡ƒ•’‡…–•Ǥ
Šƒ–‹•–‘„‡‘–‡†ˆ”‘–Š‡ƒˆ‘”‡•ƒ‹††‡…‹•‹‘•‹•–Šƒ––Š‡–”ƒ•ƒ…–‹‘•‘ˆ–Š‡Ž‡ƒ•‹‰†‡‡†ƒ†ƒŽ•‘–Š‡†‘‹ƒ–
‹–‡–‹‘‘ˆ–Š‡ƒ••‡••‡‡™ƒ•–‘‡š’Ž‘‹–…‘‡”…‹ƒŽƒ••‡–„›…ƒ””›‹‰‘—–…‘‡”…‹ƒŽƒ…–‹˜‹–›Ǥˆ–Š‡ƒ•™‡”‹•‹–Š‡
’‘•‹–‹˜‡ǡ‹–‹•–‘„‡ƒ••‡••‡†ƒ•„—•‹‡••‹…‘‡•—„Œ‡…––‘‡šƒ‹ƒ–‹‘‘ˆ–Š‡–‡”•‘ˆ™ƒ”‡Š‘—•‹‰ƒ‰”‡‡‡–•Ǥ
Lesson 4 Ȉ Part II – Income under the head House Property 179

Ž‡ƒ•‡ƒŽ•‘”‡ˆ‡”–‘–Š‡†‡…‹•‹‘‘ˆ–Š‡ƒ†”ƒ•‹‰Š‘—”–‹ǤǤǤ˜Ǥ†‹ƒƒ”‡Š‘—•‹‰†—•–”‹‡•–†Ǥƒ†ƒŽ•‘

–Š‡Œ—†‰‡‡–‘ˆ–Š‡ƒ”ƒ–ƒƒ‹‰Š‘—”–‹ǤǤ˜Ǥƒ”ƒ–ƒƒ–ƒ–‡ƒ”‡Š‘—•‹‰‘”’‘”ƒ–‹‘Ǥ
͵Ǥƒ„‡‡ϐ‹–‘ˆ•‡ŽˆǦ‘……—’ƒ–‹‘‘ˆŠ‘—•‡’”‘’‡”–›—†‡”•‡…–‹‘ʹ͵ȋʹȌ„‡†‡‹‡†–‘ƒ ‘–Š‡‰”‘—†
–Šƒ–‹–ǡ„‡‹‰ƒϐ‹…–‹‘ƒŽ‡–‹–›ǡ…ƒ‘–‘……—’›ƒŠ‘—•‡’”‘’‡”–›ǫ

CIT v. Hariprasad Bhojnagarwala (2012) (Guj.)

Š‡
—Œƒ”ƒ– ‹‰Š ‘—”– ‘„•‡”˜‡† –Šƒ– ƒ ϐ‹”ǡ ™Š‹…Š ‹• ƒ ϐ‹…–‹‘ƒŽ ‡–‹–›ǡ …ƒ‘– ’Š›•‹…ƒŽŽ› ”‡•‹†‡ ‹ ƒ Š‘—•‡
’”‘’‡”–› ƒ† –Š‡”‡ˆ‘”‡ ƒ ϐ‹” …ƒ‘– …Žƒ‹ –Š‡ „‡‡ϐ‹– ‘ˆ –Š‹• ’”‘˜‹•‹‘ǡ ™Š‹…Š ‹• ƒ˜ƒ‹Žƒ„Ž‡ –‘ ƒ ‹†‹˜‹†—ƒŽ
‘™‡”™Š‘…ƒƒ…–—ƒŽŽ›‘……—’›–Š‡Š‘—•‡Ǥ‘™‡˜‡”ǡ–Š‡ ‹•ƒ‰”‘—’‘ˆ‹†‹˜‹†—ƒŽ•”‡Žƒ–‡†–‘‡ƒ…Š‘–Š‡”‹Ǥ‡Ǥǡ
ƒˆƒ‹Ž›…‘’”‹•‹‰‘ˆƒ‰”‘—’‘ˆƒ–—”ƒŽ’‡”•‘•ǤŠ‡•ƒ‹†ˆƒ‹Ž›…ƒ”‡•‹†‡‹–Š‡Š‘—•‡ǡ™Š‹…Š„‡Ž‘‰•–‘–Š‡
 Ǥ‹…‡ƒ …ƒ‘–…‘•‹•–‘ˆƒ”–‹ϐ‹…‹ƒŽ’‡”•‘•ǡ‹–…ƒ‘–„‡•ƒ‹†–‘„‡ƒϐ‹…–‹‘ƒŽ‡–‹–›Ǥ
Ž•‘ǡ ‹– ™ƒ• ‘„•‡”˜‡† –Šƒ– •‹…‡ •‹‰—Žƒ” ‹…Ž—†‡• ’Ž—”ƒŽǡ –Š‡ ™‘”† Dz‘™‡”dz ™‘—Ž† ‹…Ž—†‡ Dz‘™‡”•dz ƒ† –Š‡
™‘”†• DzŠ‹• ‘™dz —•‡† ‹ •‡…–‹‘ ʹ͵ȋʹȌ ™‘—Ž† ‹…Ž—†‡ Dz–Š‡‹” ‘™dzǤ Š‡”‡ˆ‘”‡ǡ –Š‡ ‘—”– Š‡Ž† –Šƒ– –Š‡   ‹•
‡–‹–Ž‡†–‘…Žƒ‹„‡‡ϐ‹–‘ˆ•‡ŽˆǦ‘……—’ƒ–‹‘‘ˆŠ‘—•‡’”‘’‡”–›—†‡”•‡…–‹‘ʹ͵ȋʹȌǤ

4. Letting out is subservient and incidental to the main business

•’‡”˜Ǥ‡ŽŠ‹Ž‘–ŠƬ
‡‡”ƒŽ‹ŽŽ•‘Ǥ–†Ǥǡ‹ˆƒƒ••‡••‡‡…‘•–”—…–•”‡•‹†‡–‹ƒŽ“—ƒ”–‡”ǯ•ƬŽ‡–•–Š‡‘—––‘
Š‹•‡’Ž‘›‡‡•ƬŽ‡––‹‰‘—–‘ˆ”‡•‹†‡–‹ƒŽ“—ƒ”–‡”ǯ•‹•‘Ž›”‡Žƒ–‡†–‘„—•‹‡••ǡ‹Ǥ‡Ǥǡ‹–‹•‘–ƒ‹„—•‹‡••‘ˆ
ƒ••‡••‡‡ǡ–Š‡‹…‘‡‹•–ƒšƒ„Ž‡ƒ•„—•‹‡••‹…‘‡Ƭ‘–‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›Ǥ
 –Š‡ •ƒ‡ ™ƒ› ‹– ™ƒ• Š‡Ž† ‹  ˜Ǥ ƒ–‹‘ƒŽ ‡™• ’”‹–• Ƭ ƒ’‡” ‹ŽŽ• –†Ǥǡ –Šƒ– ‹ˆ –Š‡ ƒ••‡••‡‡ ƒ‡• ‹–•
ƒ……‘‘†ƒ–‹‘ƒ˜ƒ‹Žƒ„Ž‡–‘
‘˜–Ǥˆ‘”Ž‘…ƒ–‹‰ƒ„”ƒ…Š‘ˆƒ–‹‘ƒŽ‹•‡†„ƒǡ’‘•–‘ˆϐ‹…‡ǡ’‘Ž‹…‡•–ƒ–‹‘ǡ…‡–”ƒŽ
‡š…‹•‡‘ˆϐ‹…‡‡–…Ǥǡ™‹–Š–Š‡ƒ‹‘ˆ…ƒ””›‹‰‘‹–•„—•‹‡••‡ˆϐ‹…‹‡–Ž›ƒ†•‘‘–ŠŽ›ǡ”‡–…‘ŽŽ‡…–‡†‹•–ƒšƒ„Ž‡ƒ•
„—•‹‡••‹…‘‡ƒ†‘–ƒ•Š‘—•‡’”‘’‡”–›‹…‘‡Ǥ

5. Once interest on interest free security deposits received by assessee from tenant was offered to tax as
income from other sources, adding notional interest on interest free security deposits to determine
‘Annual letting value’ of property under section 23(1)(b) of the Income tax act, 1961 would amount to
double taxation [Assessment year 2004-05 to 2007-08] [In favour of assessee]

Principal CIT v. Karia Can Co. Ltd. [2018] (Bombay High Court)

…‡ƒ‹–‡”‡•–‘‹–‡”‡•–ˆ”‡‡•‡…—”‹–›†‡’‘•‹–•”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡ˆ”‘–‡ƒ–™ƒ•‘ˆˆ‡”‡†–‘–ƒšƒ•
‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǡƒ††‹‰‘–‹‘ƒŽ‹–‡”‡•–‘‹–‡”‡•–ˆ”‡‡•‡…—”‹–›†‡’‘•‹–•–‘†‡–‡”‹‡Ǯ—ƒŽ
Ž‡––‹‰˜ƒŽ—‡ǯ‘ˆ’”‘’‡”–›—†‡”•‡…–‹‘ʹ͵ȋͳȌȋ„Ȍ™‘—Ž†ƒ‘—––‘†‘—„Ž‡–ƒšƒ–‹‘Ǥ

͸ǤŠ‡”‡ϐŽƒ–•…‘•–”—…–‡†„›ƒ••‡••‡‡™‡”‡Š‡Ž†ƒ••–‘…Ǧ‹Ǧ–”ƒ†‡ƒ†•ƒ‡™‡”‡‘–ƒ–ƒŽŽŽ‡–‘—–ˆ‘”
any previous years, there would be no question of availing vacancy allowance under section 23(1)(c);
assessee would be liable to pay tax on ALV of said that under section 23(1)(a) [Assessment year 2005-06
and 2006-07][In favour of revenue]

Ansal Holding & Construction Ltd. v. Asstt. CIT [2018] (Delhi High Court)

Š‡ƒ••‡••‡‡™ƒ•‡‰ƒ‰‡†‹„—•‹‡••‘ˆ…‘•–”—…–‹‘‘ˆŠ‘—•‡’”‘’‡”–›Ǥ‘‡ϐŽƒ–•…‘•–”—…–‡†„›–Š‡ƒ••‡••‡‡
™‡”‡ ‘– Ž‡– ‘—– †—”‹‰ ›‡ƒ”Ǥ Š‡ ”‹„—ƒŽ ƒ••‡••‡†  ‘ˆ –Š‘•‡ ϐŽƒ–• ƒ• Ǯ‹…‘‡ ˆ”‘ Š‘—•‡ ’”‘’‡”–›ǯǤ Š‡
ƒ••‡••‡‡ …‘–‡†‡† –Šƒ– •ƒ‹† ϐŽƒ–• ™‡”‡ ‹–• –‘… ‹ –”ƒ†‡ ƒ† –Šƒ– ’”‘˜‹•‹‘ ‘ˆ •‡…–‹‘ ʹ͵ȋͳȌȋ…Ȍ ™‘—Ž† „‡
ƒ’’Ž‹…ƒ„Ž‡–‘‹–•…ƒ•‡ƒ†ǡ–Š‡”‡ˆ‘”‡ǡ‘ˆϐŽƒ–•…‘—Ž†‘–„‡„”‘—‰Š––‘–ƒš—†‡”–Š‡Š‡ƒ†‹…‘‡ˆ”‘Š‘—•‡
’”‘’‡”–›Ǥ
‡Ž†–Šƒ–™Š‡”‡’”‘’‡”–‹‡•Š‡Ž†ƒ••–‘…‹–”ƒ†‡™‡”‡‘–Ž‡–‘—–ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”•ǡ–Š‡”‡™‘—Ž†„‡‘
“—‡•–‹‘‘ˆƒ˜ƒ‹Ž‹‰˜ƒ…ƒ…›ƒŽŽ‘™ƒ…‡‰‹˜‡‹•‡…–‹‘ʹ͵ȋͳȌȋ…Ȍƒ†–Š‡ƒ••‡••‡‡™‘—Ž†„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš‘
‘ˆ–Š‘•‡ϐŽƒ–•—†‡”•‡…–‹‘ʹ͵ȋͳȌȋƒȌ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
180 Lesson 4 Ȉ EP-TL

LESSON ROUND-UP

Ȉ Charging Section: ‡…–‹‘ ʹʹ ‘ˆ –Š‡ …– ’”‘˜‹†‡• –Šƒ– –Š‡ ƒ—ƒŽ ˜ƒŽ—‡ ‘ˆ ’”‘’‡”–› …‘•‹•–‹‰ ‘ˆ ƒ›
„—‹Ž†‹‰•‘”Žƒ†•ƒ’’—”–‡ƒ––Š‡”‡–‘‘ˆ™Š‹…Š–Š‡ƒ••‡••‡‡‹•–Š‡‘™‡”ǡ‘–Š‡”–Šƒ•—…Š’‘”–‹‘•‘ˆ
•—…Š’”‘’‡”–›ƒ•Š‡ƒ›‘……—’›ˆ‘”–Š‡’—”’‘•‡•‘ˆƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘„›Š‹ǡ–Š‡
’”‘ϐ‹–•‘ˆ™Š‹…Šƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšǡ•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†…‘‡
ˆ”‘‘—•‡”‘’‡”–›Ǥ
Ȉ Deemed Owner: •’‡”•‡…–‹‘ʹ͹ǡ–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•–Š‘—‰Š‘––Š‡Ž‡‰ƒŽ‘™‡”•‘ˆƒ’”‘’‡”–›ƒ”‡
†‡‡‡†–‘„‡–Š‡‘™‡”•ˆ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘•ʹʹ–‘ʹ͸ǣ
ȋƒȌ ”ƒ•ˆ‡”–‘ƒ•’‘—•‡‘”‹‘”…Š‹Ž†
ȋ„Ȍ ‘Ž†‡”‘ˆƒ‹’ƒ”–‹„Ž‡‡•–ƒ–‡
ȋ…Ȍ ‡„‡”‘ˆƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›
ȋ†Ȍ ‡”•‘‹’‘••‡••‹‘‘ˆƒ’”‘’‡”–›
ȋ‡Ȍ ‡”•‘Šƒ˜‹‰”‹‰Š–‹ƒ’”‘’‡”–›ˆ‘”ƒ’‡”‹‘†‘–Ž‡••–Šƒͳʹ›‡ƒ”•
Ȉ Š‡‡ƒ•—”‡‘ˆ…Šƒ”‰‹‰‹…‘‡Ǧ–ƒš—†‡”–Š‹•Š‡ƒ†‹•–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›ǡ‹Ǥ‡Ǥǡ–Š‡‹Š‡”‡–
…ƒ’ƒ…‹–›‘ˆƒ„—‹Ž†‹‰–‘›‹‡Ž†‹…‘‡ǤŠ‡‡š’”‡••‹‘Ǯƒ—ƒŽ˜ƒŽ—‡ǯŠƒ•„‡‡†‡ϐ‹‡†‹‡…–‹‘ʹ͵ȋͳȌ‘ˆ
–Š‡…‘‡Ǧ–ƒš…–ƒ•ǡ–Š‡ƒ—ƒŽ˜ƒŽ—‡‘ˆƒ›’”‘’‡”–›•ŠƒŽŽ„‡†‡‡‡†–‘„‡ǣ
Ȉ Š‡•—ˆ‘”™Š‹…Š–Š‡’”‘’‡”–›‹‰Š–”‡ƒ•‘ƒ„Ž›„‡‡š’‡…–‡†–‘„‡Ž‡–ˆ”‘›‡ƒ”–‘›‡ƒ”Ǣ‘”
Ȉ Š‡”‡–Š‡’”‘’‡”–›‘”ƒ›’ƒ”–‘ˆ–Š‡’”‘’‡”–›‹•Ž‡–ƒ†–Š‡ƒ…–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›
–Š‡‘™‡”‹”‡•’‡…––Š‡”‡‘ˆ‹•‹‡š…‡••‘ˆ–Š‡•—”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ–Š‡ƒ‘—–•‘”‡…‡‹˜‡†
‘””‡…‡‹˜ƒ„Ž‡Ǣ‘”
Ȉ Š‡”‡–Š‡’”‘’‡”–›‘”ƒ›’ƒ”–‘ˆ–Š‡’”‘’‡”–›‹•Ž‡–ƒ†™ƒ•˜ƒ…ƒ–†—”‹‰–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–
‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†‘™‹‰–‘•—…Š˜ƒ…ƒ…›–Š‡ƒ…–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›–Š‡‘™‡”
‹”‡•’‡…––Š‡”‡‘ˆ‹•Ž‡••–Šƒ–Š‡•—”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ–Š‡ƒ‘—–•‘”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡Ǥ
Ȉ
”‘••ƒ—ƒŽ˜ƒŽ—‡•ŠƒŽŽ„‡Š‹‰Š‡”‘ˆ
ȋƒȌ š’‡…–‡†‡–
ȋ„Ȍ …–—ƒŽ”‡–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡Ǥ
 Š‡Š‹‰Š‡”‘ˆ—‹…‹’ƒŽ˜ƒŽ—‡ƒ†ˆƒ‹””‡–ƒŽ˜ƒŽ—‡•ŠƒŽŽ„‡š’‡…–‡†”‡–Ǥ‘™‡˜‡”ǡ‡š’‡…–‡†”‡–•ŠƒŽŽ
‘–‡š…‡‡†–Š‡–ƒ†ƒ”†”‡–Ǥ
Ȉ ‡–—ƒŽƒŽ—‡•ŠƒŽŽ„‡…‘’—–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ
 ‡–‡”‹‡–Š‡
”‘••—ƒŽƒŽ—‡
 ‡†—…–—‹…‹’ƒŽ–ƒšƒ…–—ƒŽŽ›’ƒ‹†„›–Š‡‘™‡”†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ˆ”‘–Š‡
”‘••—ƒŽƒŽ—‡Ǥ
Ȉ ‡†—…–‹‘ˆ”‘—ƒŽƒŽ—‡ȋ‡…–‹‘ʹͶȌǣǤ‡ǤˆǤ••‡••‡–‡ƒ”ʹͲͲʹǦͲ͵ǡ‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡
Š‡ƒ†Dz…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›dz•ŠƒŽŽ„‡…‘’—–‡†ƒˆ–‡”ƒ‹‰–Š‡ˆ‘ŽŽ‘™‹‰†‡†—…–‹‘•ǡƒ‡Ž›ǣ
Ȉ –ƒ†ƒ”††‡†—…–‹‘ǣƒ•—‡“—ƒŽ–‘͵ͲΨ‘ˆ–Š‡ƒ—ƒŽ˜ƒŽ—‡Ǣ
Ȉ –‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽǣ™Š‡”‡–Š‡’”‘’‡”–›Šƒ•„‡‡ƒ…“—‹”‡†ǡ…‘•–”—…–‡†ǡ”‡’ƒ‹”‡†ǡ”‡‡™‡†‘”
”‡…‘•–”—…–‡†™‹–Š„‘””‘™‡†…ƒ’‹–ƒŽǡ–Š‡ƒ‘—–‘ˆƒ›‹–‡”‡•–’ƒ›ƒ„Ž‡‘•—…Š…ƒ’‹–ƒŽǤŠ‡‹–‡”‡•–‘
„‘””‘™‡†‘‡›’‡”–ƒ‹‹‰–‘’”‡Ǧ…‘•–”—…–‹‘’‡”‹‘†‹•ƒ˜ƒ‹Žƒ„Ž‡‹ͷ‡“—ƒŽ‹•–ƒŽŽ‡–•…‘‡…‹‰
ˆ”‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…ŠŠ‘—•‡‹•ƒ…“—‹”‡†‘”…‘•–”—…–‡†Ǥ ‘”–Š‹•’—”’‘•‡–Š‡’”‡Ǧ…‘•–”—…–‹‘
’‡”‹‘†‡ƒ•–Š‡’‡”‹‘†…‘‡…‹‰‘–Š‡†ƒ–‡‘ˆ„‘””‘™‹‰ƒ†‡†‹‰‘͵ͳ•–ƒ”…Š‹‡†‹ƒ–‡Ž›
’”‹‘”–‘–Š‡†ƒ–‡‘ˆ…‘’Ž‡–‹‘‘ˆ…‘•–”—…–‹‘Ȁ†ƒ–‡‘ˆƒ…“—‹•‹–‹‘‘”†ƒ–‡‘ˆ”‡’ƒ›‡–‘ˆŽ‘ƒǡ™Š‹…Š‡˜‡”
‹•‡ƒ”Ž‹‡”Ǥ–‡”‡•–ˆ‘”…—””‡–›‡ƒ”‹•†‡†—…–‹„Ž‡—’–‘•Ǥ͵ͲǡͲͲͲȀ•ǤʹǡͲͲǡͲͲͲƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Lesson 4 Ȉ Part II – Income under the head House Property 181

TEST YOURSELF

ȋŠ‡•‡ƒ”‡‡ƒ–ˆ‘””‡Ǧ…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘ǤȌ

Multiple Choice Questions (MCQs)

ͳǤ Š‡
”‘••—ƒŽƒŽ—‡‹•–Š‡Š‹‰Š‡”‘ˆ…–—ƒŽ‡–ƒ†ǫ
ȋƒȌ —‹…‹’ƒŽƒŽ—ƒ–‹‘
ȋ„Ȍ ƒ‹”‡–ƒŽƒŽ—‡
ȋ…Ȍ –ƒ†ƒ”†‡–
ȋ†Ȍ š’‡…–‡†‡–
•™‡”ǣ†
ʹǤ š’‡…–‡†‡–‹•ƒŽ™ƒ›•–Š‡Š‹‰Š‡”‘ˆ ƒ‹”‡–ƒŽƒŽ—‡ƒ†—‹…‹’ƒŽƒŽ—ƒ–‹‘ǫ
ȋƒȌ ”—‡
ȋ„Ȍ ”—‡„—–Ž‹‹–‡†–‘–ƒ†ƒ”†‡–
ȋ…Ȍ ”—‡„—–Ž‹‹–‡†–‘ʹͷͲǡͲͲͲ
ȋ†Ȍ ƒŽ•‡
•™‡”ǣ„
͵Ǥ –ƒ†ƒ”†‡–‹•–Š‡”‡–ˆ‡–…Š‡†„›ƒ•‹‹Žƒ”’”‘’‡”–›‹–Š‡‡‹‰Š„‘—”Š‘‘†ǫ
ȋƒȌ ‡•
ȋ„Ȍ ‡•ǡ„—–‘–Ž‹‹–‡†–‘‡‹‰Š„‘—”Š‘‘†
ȋ…Ȍ ‡•ǡ„—–™‹–Šƒƒ’
ȋ†Ȍ ‘
•™‡”ǣ†
ͶǤ ˆ–Š‡ƒ••‡••‡‡Šƒ•‘”‡–Šƒ–™‘Š‘—•‡–Šƒ–‹••‡ŽˆǦ‘……—’‹‡†ǡ–Š‡…Š‘‹…‡‘ˆ–Š‡Š‘—•‡•–Šƒ–•Š‘—Ž†„‡
…‘•–”—‡†ƒ••‡ŽˆǦ‘……—’‹‡†ˆ‘”–Š‡‘–Š‡”•–‘„‡…‘•‹†‡”‡†ƒ•†‡‡‡†–‘„‡Ž‡–‘—–Ž‹‡•™‹–Šǫ
ȋƒȌ ••‡••‹‰ˆϐ‹…‡”
ȋ„Ȍ ••‡••‡‡
ȋ…Ȍ ‹–Š‡”
ȋ†Ȍ ‡‹–Š‡”
•™‡”ǣ„
ͷǤ ‡…–‹‘ʹͶȋƒȌ’”‡•…”‹„‡•–Š‡•–ƒ†ƒ”††‡†—…–‹‘ˆ”‘‘ˆƒ•—‡“—ƒŽ–‘ǫ
ȋƒȌ ͵͵Ψ‘ˆ
ȋ„Ȍ ͵ͲΨ‘ˆ
ȋ…Ȍ ͳȀ͵”†‘ˆ
ȋ†Ȍ …–—ƒŽ…‘•–‘ˆ”‡’ƒ‹”•
•™‡”ǣ„
182 Lesson 4 Ȉ EP-TL

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

 —–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
 —„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
 —–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 —„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES

Ȉ Income Tax Act, 1961: Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š

Ȉ Income Tax Rules, 1962: Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•ǦͷͿͼ͸Ǥƒ•’š
Ȉ Circulars: Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
 ƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘
Lesson 4 —•‹‡••Ȁ”‘ˆ‡••‹‘
Key Concepts One Learning Objectives
Should Know
‘—†‡”•–ƒ†
Ȉ —•‹‡••‘”
Ȉ Šƒ–ƒ”‡–Š‡…‘•–‹–—‡–‘ˆ—•‹‡••‘””‘ˆ‡••‹‘ǫ
”‘ˆ‡••‹‘
Ȉ Š‹…Š‹…‘‡•ƒ”‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†
ǫ
Ȉ ’‡…—Žƒ–‹˜‡
”ƒ•ƒ…–‹‘ Ȉ ‘’—–ƒ–‹‘‘ˆƒšƒ„Ž‡…‘‡—†‡”–Š‡Š‡ƒ†
ǫ
Ȉ ‡’”‡…‹ƒ–‹‘ Ȉ Š‹…Š ƒ”‡ ƒ†‹••‹„Ž‡Ȁ‹ƒ†‹••‹„Ž‡ ‡š’‡•‡• ™Š‹Ž‡ …‘’—–‹‰
–Š‡‹…‘‡ˆ”‘„—•‹‡••ƒ†’”‘ˆ‡••‹‘ǫ
Ȉ Ž‘…‘ˆ••‡–•
Ȉ Š‡ƒ”‡…‡”–ƒ‹”‡…‡‹’–•†‡‡‡†–‘„‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
Ȉ ”‹––‡‘™ƒŽ—‡ —†‡”–Š‡Š‡ƒ†
ǫ
Ǯǯ
Ȉ Š‹…Šƒ”‡–Š‡†‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡‘ƒ…–—ƒŽ’ƒ›‡–„ƒ•‹•ǫ
Ȉ ‡‡‡†”‘ϐ‹–•
Ȉ Š‹…Š ƒ••‡••‡‡• ƒ”‡ ”‡“—‹”‡† –‘ …‘’—Ž•‘”‹Ž› ƒ‹–ƒ‹ „‘‘• ‘ˆ
Ȉ ”‡•—’–‹˜‡ ƒ……‘—–ǫ
ƒšƒ–‹‘
Ȉ Š‡‹•ƒ—†‹–‘ˆƒ……‘—–•…‘’—Ž•‘”›ǫ
Ȉ Š‘ƒ”‡–Š‡ƒ••‡••‡‡•–‘™Š‘’”‡•—’–‹˜‡–ƒš’”‘˜‹•‹‘•ƒ’’Ž›ǫ

Lesson Outline
Ȉ Ǯ—•‹‡••ǯ‘”Ǯ”‘ˆ‡••‹‘ǯ Ȉ ‘’—Ž•‘”›—†‹–‘ˆ‘‘•
‘ˆ……‘—–•
Ȉ …‘‡Šƒ”‰‡ƒ„Ž‡–‘ƒš
—†‡”–Š‡Š‡ƒ†—•‹‡••‘” Ȉ ”‡•—’–‹˜‡ƒš’”‘˜‹•‹‘•
”‘ˆ‡••‹‘ –‘…‘’—–‡…‘‡ˆ”‘
‡Ž‹‰‹„Ž‡—•‹‡••‘”
Ȉ ’‡…—Žƒ–‹‘—•‹‡••
”‘ˆ‡••‹‘
Ȉ ‡–Š‘†‘ˆ……‘—–‹‰
Ȉ ”‡•—’–‹˜‡ƒšƒ–‹‘ˆ‘”
Ȉ ‘’—–ƒ–‹‘‘ˆ”‘ϐ‹–•‘ˆ ”‘ˆ‡••‹‘ƒŽ•
—•‹‡••‘””‘ˆ‡••‹‘
Ȉ ’‡…‹ƒŽ”‘˜‹•‹‘ˆ‘”
Ȉ †‹••‹„Ž‡‡†—…–‹‘• …‘’—–‹‰”‘ϐ‹–Ƭ
ƒ‹•‘ˆ
Ȉ š’‡•‡•‡•–”‹…–‡†Ȁ —•‹‡••‘ˆŽ›‹‰‹”‹‰Ƭ
‹•ƒŽŽ‘™‡† ‡ƒ•‹‰
‘‘†•ƒ””‹ƒ‰‡•

Ȉ ‡‡‡†”‘ϐ‹–• Ȉ —‡•–‹‘ƒ†•™‡”•

Ȉ ’‡…‹ƒŽ’”‘˜‹•‹‘‹…ƒ•‡‘ˆ Ȉ ‡š—”‡
…‘‡‘ˆ—„Ž‹… ‹ƒ…‹ƒŽ Ȉ ƒ•‡ƒ™•
•–‹–—–‹‘
Ȉ 
Ȉ ’‡…‹ƒŽ’”‘˜‹•‹‘•”‡Žƒ–‡†–‘
Ȉ 
•—”ƒ…‡—•‹‡••
Ȉ   

Ȉ ‘’—Ž•‘”›ƒ‹–‡ƒ…‡‘ˆ
‘‘•‘ˆ……‘—–• Ȉ  
184 Lesson 4 Ȉ EP-TL

Regulatory Framework

‡…–‹‘• …‘‡ƒš…–ǡͳͻ͸ͳ

‡…–‹‘ʹͺ …‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†—•‹‡••‘””‘ˆ‡••‹‘
‡…–‹‘Ͷ͵ȋͷȌ ’‡…—Žƒ–‹‘”ƒ•ƒ…–‹‘
‡…–‹‘ͳͶͷ ‡–Š‘†‘ˆ……‘—–‹‰
‡…–‹‘ͳͶͷ ‡–Š‘†‘ˆ……‘—–‹‰‹‡”–ƒ‹ƒ•‡•
‡…–‹‘ͳͶͷ ƒšƒ„‹Ž‹–›‘ˆ‡”–ƒ‹…‘‡
‡…–‹‘͵ͲǦ͵͹ †‹••‹„Ž‡‡†—…–‹‘
‡…–‹‘ʹȋͳͳȌ Ž‘…‘ˆ••‡–•
‡…–‹‘Ͷ͵ȋͳȌ …–—ƒŽ‘•–
‡…–‹‘Ͷ͵ȋ͸Ȍ ”‹––‡‘™ƒŽ—‡ȋȌ
‡…–‹‘ͶͲ š’‡•‡•‹•ƒŽŽ‘™‡†
‡…–‹‘Ͷ͵ ‹•ƒŽŽ‘™ƒ…‡‘ˆ—’ƒ‹†–ƒ–—–‘”›‹ƒ„‹Ž‹–›
‡…–‹‘Ͷ͵ Šƒ‰‡•‹ƒ–‡‘ˆš…Šƒ‰‡
‡…–‹‘Ͷͳ ‡‡‡†”‘ϐ‹–•
‡…–‹‘Ͷ͵ ”ƒ•ˆ‡”‘ˆ‘˜ƒ„Ž‡”‘’‡”–›

‡…–‹‘Ͷ͵ ’‡…‹ƒŽ’”‘˜‹•‹‘‹…ƒ•‡‘ˆ…‘‡‘ˆ—„Ž‹… ‹ƒ…‹ƒŽ•–‹–—–‹‘•

’‡…‹ƒŽ’”‘˜‹•‹‘•ˆ‘”…‘’—–‹‰’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘ˆ’Ž›‹‰ǡ
‡…–‹‘ͶͶ
Š‹”‹‰‘”Ž‡ƒ•‹‰‰‘‘†•…ƒ””‹ƒ‰‡•
‡…–‹‘ͶͶ ’‡…‹ƒŽ’”‘˜‹•‹‘•”‡Žƒ–‡†–‘•—”ƒ…‡—•‹‡••
‡…–‹‘ͶͶ ‘’—Ž•‘”›ƒ‹–‡ƒ…‡‘ˆ‘‘•‘ˆ……‘—–
‡…–‹‘ͶͶ ‘’—Ž•‘”›—†‹–‘ˆ‘‘•‘ˆ……‘—–

’‡…‹ƒŽ ’”‘˜‹•‹‘ ˆ‘” …‘’—–‹‰ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ „—•‹‡•• ‘
‡…–‹‘ͶͶ
”‡•—’–‹˜‡ƒ•‹•

‡…–‹‘ͶͶ ”‡•—’–‹˜‡ƒšƒ–‹‘ˆ‘””‘ˆ‡••‹‘ƒŽ•

‡…–‹‘• …‘‡ƒš—Ž‡•ǡͳͻ͸ʹ

—Ž‡ͷ ‘†‹–‹‘•ˆ‘”ŽŽ‘™ƒ„‹Ž‹–›‘ˆ‡’”‡…‹ƒ–‹‘
—Ž‡͸ ”‡•…”‹„‡†Ž‡…–”‘‹…‘†‡•
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ 185

ǮǯǮ ǯ

Š‡ …‘…‡’– ‘ˆ „—•‹‡•• ’”‡•—’’‘•‡• –Š‡ …ƒ””›‹‰ ‘ ‘ˆ ƒ›
ƒ…–‹˜‹–› ˆ‘” ’”‘ϐ‹–Ǥ Š‡ †‡ϐ‹‹–‹‘ ‘ˆ „—•‹‡•• ‰‹˜‡ ‹ –Š‡ …– Š‡ –‡” Ǯ—•‹‡••ǡ Šƒ• „‡‡ †‡ϐ‹‡† ‹
†‘‡• ‘– ƒ‡ ‹– ‡••‡–‹ƒŽ ˆ‘” ƒ› –ƒš’ƒ›‡” –‘ …ƒ””› ‘ Š‹•
ƒ…–‹˜‹–‹‡•…‘•–‹–—–‹‰„—•‹‡••ˆ‘”ƒ…‘•‹†‡”ƒ„Ž‡Ž‡‰–Š‘ˆ–‹‡Ǥ
Š‡ †‡ϐ‹‹–‹‘ ‘ˆ „—•‹‡•• ‰‹˜‡ ‹ ‡…–‹‘ ʹȋͳ͵Ȍ „‡‹‰ ƒ
‹…Ž—•‹˜‡†‡ϐ‹‹–‹‘ƒ†‘–„‡‹‰‡šŠƒ—•–‹˜‡ǡ‹•™‹†‡‡‘—‰Š–‘
…‘˜‡”‡˜‡”›…ƒ•‡‘ˆ–”ƒ•ƒ…–‹‘‡–‡”‡†‹–‘™‹–Š–Š‡‹†‡ƒ‘ˆ‡ƒ”‹‰‹…‘‡Ǥ
‡…–‹‘ʹȋͳ͵Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…––‘‹…Ž—†‡
ƒ› –”ƒ†‡ǡ …‘‡”…‡ ‘” ƒ—ˆƒ…–—”‡ ‘” ƒ›
ƒ†˜‡–—”‡‘”…‘…‡”‹–Š‡ƒ–—”‡‘ˆ–”ƒ†‡ǡ
…‘‡”…‡‘”ƒ—ˆƒ…–—”‡Ǥ
šƒ’Ž‡ǣˆƒ’‡”•‘’—”…Šƒ•‡•ƒ’‹‡…‡‘ˆŽƒ†ǡ‰‡–•‹–•—”˜‡›‡†ǡŽƒ›•†‘™ƒ•…Š‡‡‘ˆ†‡˜‡Ž‘’‡–ǡ†‹˜‹†‡•‹–‹–‘
ƒ—„‡”‘ˆ„—‹Ž†‹‰’Ž‘–•ƒ†•‡ŽŽ••‘‡‘ˆ–Š‡’Ž‘–•ˆ”‘–‹‡–‘–‹‡ǡŠ‡™‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘–‘Ž›‘
–Š‡‘–‹‘ƒŽ’”‘ϐ‹–•ƒ†‡‘‹†‹˜‹†—ƒŽ•ƒŽ‡‘ˆ’Ž‘–•„—–ƒŽ•‘‘–Š‡•—”’Ž—•ǡ‹ˆƒ›ǡ”‡ƒ‹‹‰ƒˆ–‡”–Š‡•ƒŽ‡‘ˆƒŽŽ
’Ž‘–•ƒ†ƒˆ–‡”–Š‡˜‡–—”‡Šƒ†…‘‡–‘ƒ‡†Ǥ
……‘”†‹‰–‘–Š‡‰‡‡”ƒŽŽ›ƒ……‡’–‡†’”‹…‹’Ž‡•ǡ–Š‡‡ƒ‹‰‘ˆ Š‡ –‡” Ǯ”‘ˆ‡••‹‘ǯ Šƒ• „‡‡ †‡ϐ‹‡† ‹
–Š‡ –‡” Ǯ’”‘ˆ‡••‹‘ǯ ‹˜‘Ž˜‡• –Š‡ …‘…‡’– ‘ˆ ƒ ‘……—’ƒ–‹‘ ‡…–‹‘ ʹȋ͵͸Ȍ ‘ˆ –Š‡ …– –‘ ‹…Ž—†‡ ƒ›
”‡“—‹”‹‰‡‹–Š‡”‹–‡ŽŽ‡…–—ƒŽ•‹ŽŽ‘”ƒ—ƒŽ•‹ŽŽ…‘–”‘ŽŽ‡†ƒ† ˜‘…ƒ–‹‘Ǥ  –Š‡ …ƒ•‡ ‘ˆ ƒ ’”‘ˆ‡••‹‘ǡ –Š‡
†‹”‡…–‡†„›–Š‡‹–‡ŽŽ‡…–—ƒŽ•‹ŽŽ‘ˆ–Š‡‘’‡”ƒ–‘”Ǥ †‡ϐ‹‹–‹‘ ‰‹˜‡ ‹ –Š‡ …– ‹• ˜‡”› —…Š
‹ƒ†‡“—ƒ–‡ •‹…‡ ‹– †‘‡• ‘– …Ž‡ƒ”Ž› •’‡…‹ˆ›
‘”‹•–ƒ…‡ǡƒƒ—†‹–‘”…ƒ””›‹‰‘Š‹•’”ƒ…–‹…‡ǡ–Š‡Žƒ™›‡”‘”ƒ ™Šƒ– ƒ…–‹˜‹–‹‡• …‘•–‹–—–‡ ’”‘ˆ‡••‹‘ ƒ†
†‘…–‘”ǡ ƒ ’ƒ‹–‡”ǡ ƒ ƒ…–‘”ǡ ƒ ƒ”…Š‹–‡…– ‘” •…—Ž’–‘”ǡ ™‘—Ž† „‡ ™Šƒ–ƒ…–‹˜‹–‹‡•†‘‘–Ǥ
’‡”•‘•…ƒ””›‹‰‘ƒ’”‘ˆ‡••‹‘ƒ†‘–ƒ„—•‹‡••Ǥ
Š‡…‘‘ˆ‡ƒ–—”‡‹–Š‡…ƒ•‡‘ˆ„‘–Š’”‘ˆ‡••‹‘ƒ•™‡ŽŽƒ•„—•‹‡••‹•–Šƒ––Š‡‘„Œ‡…–‘ˆ…ƒ””›‹‰–Š‡‘—–‹•–‘
†‡”‹˜‡ ‹…‘‡ ƒ† –‘ ƒ‡ ’”‘ϐ‹–Ǥ Š‡ †‹•–‹…–‹‘ „‡–™‡‡ „—•‹‡••ǡ ’”‘ˆ‡••‹‘ ƒ† ˜‘…ƒ–‹‘ ‹• ‘– Š‘™‡˜‡”
ƒ–‡”‹ƒŽ„‡…ƒ—•‡‹…‘‡ˆ”‘ƒŽŽ–Š‡•‡ƒ…–‹˜‹–‹‡•‹•–ƒšƒ„Ž‡—†‡”–Š‡•ƒ‡Š‡ƒ†Ǥ


 ȏʹͺȐ
Š‡•…‘’‡‘ˆ‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‹•Š‡ƒ†‹•…‘˜‡”‡†„›‡…–‹‘ʹͺ‘ˆ–Š‡…–™Š‹…ŠŽƒ›•†‘™–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ȋ‹Ȍ ”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒ›—•‹‡••‘””‘ˆ‡••‹‘ǣŠ‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘™Š‹…Š
™ƒ•…ƒ””‹‡†‘„›–Š‡ƒ••‡••‡‡ƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
ȋ‹‹Ȍ ‘’‡•ƒ–‹‘ǣ›…‘’‡•ƒ–‹‘”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›ƒ›’‡”•‘Ǣ
ȋƒȌ ‘” ƒƒ‰‹‰ –Š‡ ƒˆˆƒ‹”• ‘ˆ ƒ †‹ƒ …‘’ƒ› ‘” ƒ› ‘–Š‡” …‘’ƒ› ‘” ‹ …‘‡…–‹‘ ™‹–Š –Š‡
–‡”‹ƒ–‹‘‘ˆŠ‹•ƒ‰”‡‡‡–‘”–Š‡‘†‹ϐ‹…ƒ–‹‘‘ˆ–Š‡–‡”•ƒ†…‘†‹–‹‘•”‡Žƒ–‹‰–Š‡”‡–‘Ǥ
ȋ„Ȍ ‘”Š‘Ž†‹‰ƒƒ‰‡…›‹†‹ƒˆ‘”ƒ›’ƒ”–‘ˆ–Š‡ƒ…–‹˜‹–‹‡•”‡Žƒ–‹‰–‘–Š‡„—•‹‡••‘ˆƒ›‘–Š‡”’‡”•‘
‘”‹…‘‡…–‹‘™‹–Š–Š‡–‡”‹ƒ–‹‘‘ˆ–Š‡ƒ‰‡…›‘”–Š‡‘†‹ϐ‹…ƒ–‹‘‘ˆ–Š‡–‡”•ƒ†…‘†‹–‹‘•
”‡Žƒ–‹‰–Š‡”‡–‘Ǥ
ȋ…Ȍ ‘”‘”‹…‘‡…–‹‘™‹–Š–Š‡˜‡•–‹‰‹–Š‡
‘˜‡”‡–ǡ‘”‹ƒ›…‘”’‘”ƒ–‹‘‘™‡†‘”…‘–”‘ŽŽ‡†„›
–Š‡
‘˜‡”‡–ǡ‘ˆ–Š‡ƒƒ‰‡‡–‘ˆƒ›’”‘’‡”–›‘”„—•‹‡••Ǥ
ȋ†Ȍ ›…‘’‡•ƒ–‹‘”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡„›ƒ›’‡”•‘ƒ–‘”‹…‘‡…–‹‘™‹–Š–Š‡–‡”‹ƒ–‹‘‘”–Š‡
‘†‹ϐ‹…ƒ–‹‘‘ˆ–Š‡–‡”•ƒ†…‘†‹–‹‘•ǡ™Š‡–Š‡””‡˜‡—‡‘”…ƒ’‹–ƒŽ‘ˆƒ›…‘–”ƒ…–”‡Žƒ–‹‰–‘Š‹•
„—•‹‡••Ǥ
ȋ‹‹‹Ȍ …‘‡†‡”‹˜‡†„›ƒ–”ƒ†‡ǡ’”‘ˆ‡••‹‘ƒŽ‘”•‹‹Žƒ”ƒ••‘…‹ƒ–‹‘ˆ”‘•’‡…‹ϐ‹…•‡”˜‹…‡•’‡”ˆ‘”‡†ˆ‘”‹–•
‡„‡”•ǣ…‘‡†‡”‹˜‡†„›ƒ–”ƒ†‡ǡ’”‘ˆ‡••‹‘ƒŽ‘”•‹‹Žƒ”ƒ••‘…‹ƒ–‹‘ˆ”‘•’‡…‹ϐ‹…•‡”˜‹…‡•’‡”ˆ‘”‡†
ˆ‘”‹–•‡„‡”•ǤŠ‹•‹•ƒ‡š…‡’–‹‘–‘–Š‡‰‡‡”ƒŽ’”‹…‹’Ž‡‘ˆ—–—ƒŽ‹–›–Šƒ–‘‘‡…ƒƒ‡’”‘ϐ‹–‘—–‘ˆ
Š‹•‡ŽˆǤ Š‡”‡ˆ‘”‡ ƒ› •—”’Ž—• ƒ”‹•‹‰ –‘ –Š‡ —–—ƒŽ ƒ••‘…‹ƒ–‹‘• •—…Š ƒ• ƒ„‘—” ‡Žˆƒ”‡ ••‘…‹ƒ–‹‘ǡ
Šƒ„‡”‘ˆ‘‡”…‡‡–…Ǥ„›’‡”ˆ‘”‹‰•’‡…‹ϐ‹…•‡”˜‹…‡•–‘‹–•‡„‡”•‹•†‡‡‡†ƒ•‹…‘‡‡ƒ”‡†ƒ•
…ƒ””›‹‰‘„—•‹‡••‹”‡•’‡…–‘ˆ–Š‡•‡•‡”˜‹…‡•ƒ†ƒ……‘”†‹‰Ž›…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ
ȋ‹˜Ȍ š’‘”–…‡–‹˜‡•ǣ”‘ϐ‹–•‘•ƒŽ‡‘ˆƒ’‘”–‡–‹–Ž‡‡–Ž‹…‡…‡‰”ƒ–‡†—†‡”–Š‡’‘”–•ȋ‘–”‘ŽȌ”†‡”Ǥ
ƒ•Š…‘’‡•ƒ–‘”›ƒ••‹•–ƒ…‡ƒ‰ƒ‹•–‡š’‘”–ƒ†—–›”ƒ™„ƒ…‘ˆ—•–‘•ƒ†‡–”ƒŽ‡š…‹•‡—–‹‡•Ǥ”‘ϐ‹–
 ͳͺ͸ Lesson 4 Ȉ EP-TL

‘–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡—–›–‹–Ž‡‡–ƒ••‘‘…Š‡‡Ǥ”‘ϐ‹–‘–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡—–› ”‡‡‡’Ž‡‹•Š‡–
‡”–‹ϐ‹…ƒ–‡Ǥ
ȋ˜Ȍ ƒŽ—‡‘ˆƒ›„‡‡ϐ‹–‘”‡”“—‹•‹–‡ǣŠ‡˜ƒŽ—‡‘ˆƒ›„‡‡ϐ‹–‘”’‡”“—‹•‹–‡ǡ™Š‡–Š‡”…‘˜‡”–‹„Ž‡‹–‘‘‡›
‘”‘–ƒ”‹•‹‰ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ ‘”‡šƒ’Ž‡ǡ˜ƒŽ—‡‘ˆƒ”‡–ˆ”‡‡ƒ……‘‘†ƒ–‹‘•‡…—”‡†„›ƒ
ƒ••‡••‡‡ˆ”‘ƒ…‘’ƒ›‹…‘•‹†‡”ƒ–‹‘‘ˆŠ‹•’”‘ˆ‡••‹‘ƒŽ•‡”˜‹…‡•–‘–Š‡…‘’ƒ›™‹ŽŽ„‡ƒ••‡••ƒ„Ž‡‹
–Š‡Šƒ†•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
ȋ˜‹Ȍ ›‹–‡”‡•–ǡ•ƒŽƒ”›ǡ„‘—•ǡ…‘‹••‹‘‘””‡—‡”ƒ–‹‘ǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†ǡ†—‡–‘ǡ‘””‡…‡‹˜‡†
„›ǡƒ’ƒ”–‡”‘ˆƒϐ‹”ˆ”‘•—…Šϐ‹”–‘–Š‡‡š–‡–—†‡”•‡…–‹‘ͶͲȋ„ȌǤ
 ‘”‡šƒ’Ž‡ǣϐ‹”’ƒ›•‹–‡”‡•––‘ƒ’ƒ”–‡”ƒ–ͳͺΨ•‹’Ž‡‹–‡”‡•–’ǤƒǤŠ‡ƒŽŽ‘™ƒ„Ž‡”ƒ–‡‘ˆ‹–‡”‡•–‹•
ͳʹΨ’ǤƒǤ‡…‡–Š‡‡š…‡••͸Ψ’ƒ‹†™‹ŽŽ„‡†‹•ƒŽŽ‘™‡†‹–Š‡Šƒ†•‘ˆ–Š‡ϐ‹”Ǥ‹…‡–Š‡‡š…‡••‹–‡”‡•–Šƒ•
•—ˆˆ‡”‡† –ƒš ‹ –Š‡ Šƒ†• ‘ˆ –Š‡ ϐ‹”ǡ –Š‡ •ƒ‡ ™‹ŽŽ ‘– „‡ –ƒš‡† ‹ –Š‡ Šƒ†• ‘ˆ –Š‡ ’ƒ”–‡”Ǥ Š‡ ‹–‡”‡•–
–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡’ƒ”–‡”•ŠƒŽŽ„‡ͳʹΨ‘Ž›Ǥ
ȋ˜‹‹Ȍ ›•—ǡ™Š‡–Š‡””‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡ǡ‹…ƒ•Š‘”‹†ǡ—†‡”ƒƒ‰”‡‡‡–ˆ‘”Ȃ
ȋƒȌ ‘– …ƒ””›‹‰ ‘—– ƒ› ƒ…–‹˜‹–› ‹ ”‡Žƒ–‹‘ –‘ ƒ› „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ǡ ’”‘˜‹†‡† ‹– ‹• ‘– –ƒšƒ„Ž‡ ƒ•
…ƒ’‹–ƒŽ‰ƒ‹•Ǥ ‘”‡šƒ’Ž‡ǣ‘Ǧ…‘’‡–‡ ‡‡•Ǥ
ȋ„Ȍ ‘–•Šƒ”‹‰ƒ›‘™ǦŠ‘™ǡ’ƒ–‡–ǡ…‘’›”‹‰Š–ǡ–”ƒ†‡Ǧƒ”ǡŽ‹…‡…‡ǡˆ”ƒ…Š‹•‡‡–…Ǥ
ȋ˜‹‹‹Ȍ ‡›ƒ•—”ƒ…‡‘Ž‹…›ǣ›•—”‡…‡‹˜‡†—†‡”ƒ‡›ƒ‹•—”ƒ…‡’‘Ž‹…›‹…Ž—†‹‰–Š‡•—ƒŽŽ‘…ƒ–‡†
„›™ƒ›‘ˆ„‘—•‘•—…Š’‘Ž‹…›Ǥ
ȋ‹šȌ ƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ‹˜‡–‘”›ƒ•‘–Š‡†ƒ–‡‘ˆ‘˜‡”•‹‘ǣŠ‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ‹˜‡–‘”›ƒ•‘–Š‡
†ƒ–‡‘™Š‹…Š‹–‹•…‘˜‡”–‡†‹–‘ǡ‘”–”‡ƒ–‡†ƒ•ǡƒ…ƒ’‹–ƒŽƒ••‡–†‡–‡”‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”Ǥ
ȋšȌ ›•—”‡…‡‹˜‡†ˆ”‘–”ƒ•ˆ‡”‘”†‡•–”—…–‹‘‘ˆƒ›ƒ’‹–ƒŽ••‡–ǣ›•—”‡…‡‹˜‡†ˆ”‘–”ƒ•ˆ‡”‘”
†‡•–”—…–‹‘‘ˆƒ›…ƒ’‹–ƒŽƒ••‡–ȋ‘–Š‡”–ŠƒŽƒ†‘”‰‘‘†™‹ŽŽ‘”ϐ‹ƒ…‹ƒŽ‹•–”—‡–Ȍ™Š‘•‡…‘•–Šƒ•„‡‡
ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘—†‡”•‡…–‹‘͵ͷǤ


‡…–‹‘ Ͷ͵ȋͷȌ †‡ϐ‹‡• –Š‡ ‡š’”‡••‹‘ Dz•’‡…—Žƒ–‹˜‡ –”ƒ•ƒ…–‹‘dz ƒ• Dzƒ –”ƒ•ƒ…–‹‘ ‹ ™Š‹…Š ƒ …‘–”ƒ…– ˆ‘” –Š‡
’—”…Šƒ•‡‘”•ƒŽ‡‘ˆƒ›…‘‘†‹–›‹…Ž—†‹‰•–‘…•ƒ†•Šƒ”‡•‹•’‡”‹‘†‹…ƒŽŽ›‘”—Ž–‹ƒ–‡Ž›•‡––Ž‡†‘–Š‡”™‹•‡
–Šƒ„›–Š‡ƒ…–—ƒŽ†‡Ž‹˜‡”›‘”–”ƒ•ˆ‡”‘ˆ–Š‡…‘‘†‹–›‘”•…”‹’•dzǤŠ‡”‡ƒ›’ƒ”–‘ˆ–Š‡„—•‹‡••‘ˆƒ…‘’ƒ›
…‘•‹•–•‹–Š‡’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ–Š‡•Šƒ”‡•‘ˆ‘–Š‡”…‘’ƒ‹‡•ǡ•—…Šƒ…‘’ƒ›•ŠƒŽŽ„‡†‡‡‡†–‘„‡…ƒ””›‹‰
‘•’‡…—Žƒ–‹‘„—•‹‡••–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡„—•‹‡••…‘•‹•–•‘ˆ–Š‡’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•—…Š•Šƒ”‡•Ǥ
‘™‡˜‡”ƒ•’‡”–Š‡š’Žƒƒ–‹‘–‘‡…–‹‘͹͵ǡ–Š‹•†‡‡‹‰’”‘˜‹•‹‘†‘‡•‘–ƒ’’Ž›–‘–Š‡ˆ‘ŽŽ‘™‹‰…‘’ƒ‹‡•ǣ
ȋƒȌ Š‡”‡ƒ…‘’ƒ›™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡…‘•‹•–•ƒ‹Ž›‘ˆ‹…‘‡™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†•
Dz–‡”‡•–‘•‡…—”‹–‹‡•dzǡDz…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›dzǡDzƒ’‹–ƒŽ‰ƒ‹•dzƒ†Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǡ‘”
ȋ„Ȍ …‘’ƒ›ǡ–Š‡’”‹…‹’ƒŽ„—•‹‡••‘ˆ™Š‹…Š‹•ǣ
ȋ‹Ȍ –Š‡„—•‹‡••‘ˆ–”ƒ†‹‰‹•Šƒ”‡•‘”
ȋ‹‹Ȍ „ƒ‹‰„—•‹‡••‘”
ȋ‹‹‹Ȍ –Š‡‰”ƒ–‹‰‘ˆŽ‘ƒ•ƒ†ƒ†˜ƒ…‡•
……‘”†‹‰Ž›ǡ‹ˆ–Š‡•‡…‘’ƒ‹‡•…ƒ””›‘–Š‡„—•‹‡••‘ˆ’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•‘ˆ‘–Š‡”…‘’ƒ‹‡•ǡ–Š‡‹…‘‡
ˆ”‘•—…Š„—•‹‡••‹•‘––”‡ƒ–‡†ƒ•‹…‘‡ˆ”‘•’‡…—Žƒ–‹˜‡„—•‹‡••Ǥ
‘™‡˜‡”ǡ –Š‡ ˆ‘ŽŽ‘™‹‰ ˆ‘”• ‘ˆ –”ƒ•ƒ…–‹‘• Šƒ˜‡ „‡‡ •’‡…‹ϐ‹…ƒŽŽ› ‡š…Ž—†‡† ˆ”‘ –Š‡ •…‘’‡ ‘ˆ •’‡…—Žƒ–‹˜‡
–”ƒ•ƒ…–‹‘•ǣ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ 187

…‘–”ƒ…–‹”‡•’‡…–‘ˆ”ƒ™Ǧƒ–‡”‹ƒŽ•‘”‡”…Šƒ†‹•‡‡–‡”‡†‹–‘„›ƒ
’‡”•‘‹–Š‡…‘—”•‡‘ˆŠ‹•ƒ—ˆƒ…–—”‹‰‘”‡”…Šƒ–‹‰„—•‹‡••–‘‰—ƒ”†
ƒ‰ƒ‹•–Ž‘••–Š”‘—‰Šˆ—–—”‡’”‹…‡ϐŽ—…–—ƒ–‹‘•‹”‡•’‡…–‘ˆŠ‹•…‘–”ƒ…–•ˆ‘”
ƒ…–—ƒŽ†‡Ž‹˜‡”›‘ˆ‰‘‘†•ƒ—ˆƒ…–—”‡†„›Š‹‘”‡”…Šƒ†‹•‡•‘Ž†„›Š‹Ǣ‘”

…‘–”ƒ…–‹”‡•’‡…–‘ˆ•–‘…•ƒ†•Šƒ”‡•‡–‡”‡†‹–‘„›ƒ†‡ƒŽ‡”‘”‹˜‡•–‘”
–Š‡”‡‹–‘‰—ƒ”†ƒ‰ƒ‹•–Ž‘••‹Š‹•Š‘Ž†‹‰•‘ˆ•–‘…•ƒ†•Šƒ”‡•–Š”‘—‰Š’”‹…‡
ϐŽ—…–—ƒ–‹‘•Ǣ‘”

š…Ž—†‡†ˆ”‘–Š‡  …‘–”ƒ…– ‡–‡”‡† ‹–‘ „› ƒ ‡„‡” ‘ˆ ƒ ˆ‘”™ƒ”† ƒ”‡– ‘” ƒ •–‘…
•…‘’‡‘ˆ•’‡…—Žƒ–‹˜‡ ‡š…Šƒ‰‡‹–Š‡…‘—”•‡‘ˆƒ›–”ƒ•ƒ…–‹‘™Š‹…Š‹•‹–Š‡ƒ–—”‡‘ˆŒ‘„„‹‰‘”
–”ƒ•ƒ…–‹‘• ƒ”„‹–”ƒ‰‡–‘‰—ƒ”†ƒ‰ƒ‹•–ƒ›Ž‘••™Š‹…Šƒ›ƒ”‹•‡‹–Š‡‘”†‹ƒ”›…‘—”•‡‘ˆŠ‹•
„—•‹‡••ƒ••—…Š‡„‡”Ǥ

‡Ž‹‰‹„Ž‡–”ƒ•ƒ…–‹‘‹”‡•’‡…–‘ˆ–”ƒ†‹‰‹†‡”‹˜ƒ–‹˜‡•”‡ˆ‡””‡†–‘‹Žƒ—•‡
ȋƒƒȌ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡‡…—”‹–‹‡•‘–”ƒ…–•ȋ‡‰—Žƒ–‹‘Ȍ…–ǡͳͻͷ͸…ƒ””‹‡†‘—–
‹ƒ”‡…‘‰‹œ‡†•–‘…‡š…Šƒ‰‡Ǥ

‡Ž‹‰‹„Ž‡–”ƒ•ƒ…–‹‘‹”‡•’‡…–‘ˆ–”ƒ†‹‰‹…‘‘†‹–›†‡”‹˜ƒ–‹˜‡•…ƒ””‹‡†
‘—–‹ƒ”‡…‘‰‹œ‡†ƒ••‘…‹ƒ–‹‘ƒ†…Šƒ”‰‡ƒ„Ž‡–‘…‘‘†‹–‹‡•–”ƒ•ƒ…–‹‘–ƒšǤ
…ƒ•‡‘ˆƒ‰”‹…—Ž–—”ƒŽ…‘‘†‹–›†‡”‹˜ƒ–‹˜‡•–Š‡”‡“—‹”‡‡–•‘ˆ…Šƒ”‰‡ƒ„‹Ž‹–›
‘ˆ…‘‘†‹–‹‡•–”ƒ•ƒ…–‹‘–ƒš•ŠƒŽŽ‘–ƒ’’Ž›Ǥ

Therefore, in all cases where actual delivery or transfer of the commodity takes place, the transaction would not be a
speculative transaction, however highly speculative its nature may be.

‡›’‘‹–•ˆ‘”‘•‹†‡”ƒ–‹‘

Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–…‘–ƒ‹‡†‹‡…–‹‘•ʹͺ–‘ͶͶ”‡‰—Žƒ–‡–Š‡‡–Š‘†‘ˆ…‘’—–‹‰‹…‘‡
ˆ”‘„—•‹‡••ǤŠ‡‹…‘‡ˆ”‘„—•‹‡••–‘™Š‹…Šƒ’‡”•‘‹•…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‹•Š‡ƒ†”‡’”‡•‡–•‘––Š‡‰”‘••
”‡…‡‹’–•ˆ”‘–Š‡„—•‹‡••„—––Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘–Š‡”‡Ǥ

‡–Š‘†‘ˆ……‘—–‹‰

…‘‡‡ƒ”‡†‹…ƒ•Š‘”‹‹†

‘–‹—ƒ–‹‘‘ˆ—•‹‡••‘””‘ˆ‡••‹‘
‡›‘‹–•ˆ‘”
‘•‹†‡”ƒ–‹‘ ™‡”•Š‹’‘ˆ—•‹‡••‹•‘–‡…‡••ƒ”›ˆ‘”ƒšƒ„‹Ž‹–›

—•‹‡••ƒ›„‡‡‰ƒŽ‘”ŽŽ‡‰ƒŽ

”‘ϐ‹–‘–‹˜‡‹•‘––Š‡•‘Ž‡…‘•‹†‡”ƒ–‹‘ˆ‘”–ƒšƒ„‹Ž‹–›

‘’—–ƒ–‹‘‘ˆ‹…‘‡•‡’ƒ”ƒ–‡Ž›ˆ‘”‡ƒ…Š„—•‹‡••
 188 Lesson 4 Ȉ EP-TL

 

ȑͳͶͷȒ
…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz‘”Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dz
•ŠƒŽŽ„‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š‡‹–Š‡”…ƒ•Š‘”‡”…ƒ–‹Ž‡•›•–‡‘ˆƒ……‘—–‹‰”‡‰—Žƒ”Ž›‡’Ž‘›‡†„›–Š‡
ƒ••‡••‡‡ǤŠ‡”‡–Š‡••‡••‹‰ˆϐ‹…‡”‹•‘–•ƒ–‹•ϐ‹‡†ƒ„‘—––Š‡…‘””‡…–‡••‘”…‘’Ž‡–‡‡••‘ˆ–Š‡ƒ……‘—–•‘ˆ–Š‡
ƒ••‡••‡‡ǡ‘”™Š‡”‡–Š‡‡–Š‘†‘ˆƒ……‘—–‹‰Šƒ•‘–„‡‡”‡‰—Žƒ”Ž›ˆ‘ŽŽ‘™‡†„›–Š‡ƒ••‡••‡‡ǡ‘”™Š‡”‡–Š‡‹…‘‡
Šƒ•‘–„‡‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡…‘‡‘’—–ƒ–‹‘ƒ†‹•…Ž‘•—”‡–ƒ†ƒ”†•ȋȌƒ•‘–‹ϐ‹‡†ǡ
–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒ‡ƒ‡•– —†‰‡‡–ƒ••‡••‡–ƒ•’”‘˜‹†‡†‹•‡…–‹‘ͳͶͶǤ
Š‡‡–”ƒŽ
‘˜‡”‡–˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘Ǥͺ͹ȀʹͲͳ͸†ƒ–‡†ʹͻǤͲͻǤʹͲͳ͸Šƒ•‘–‹ϐ‹‡†–‡…‘‡‘’—–ƒ–‹‘ƒ†
‹•…Ž‘•—”‡–ƒ†ƒ”†•ȋȌ–‘„‡ƒ’’Ž‹…ƒ„Ž‡™‹–Š‡ˆˆ‡…–ˆ”‘ͳ•–’”‹ŽǡʹͲͳ͹”‡Žƒ–‹‰–‘ƒ••‡••‡–›‡ƒ”ʹͲͳ͹Ǧͳͺ
ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘‘ˆ‹…‘‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzƒ†Dz…‘‡
ˆ”‘‘–Š‡”•‘—”…‡•dzƒ†‘–ˆ‘”ƒ‹–ƒ‹‹‰„‘‘•‘ˆƒ……‘—–•Ǥ‘‡‡›ˆ‡ƒ–—”‡•‘ˆƒ”‡ƒ•—†‡”ǣ
ȋ‹Ȍ ƒ’’Ž‹‡•–‘ƒŽŽ–ƒš’ƒ›‡”•‡š…‡’–†‹˜‹†—ƒŽƒ† ™Š‘ƒ”‡‘–…‘˜‡”‡†—†‡”–Š‡–ƒšƒ—†‹–’”‘˜‹•‹‘•
—†‡”•‡…–‹‘ͶͶǤ
ȋ‹‹Ȍ ƒ’’Ž‹‡•‘Ž›–‘–ƒš’ƒ›‡”•ˆ‘ŽŽ‘™‹‰‡”…ƒ–‹Ž‡•›•–‡‘ˆƒ……‘—–‹‰Ǥ
ȋ‹‹‹Ȍ  …ƒ•‡ ‘ˆ …‘ϐŽ‹…– „‡–™‡‡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡ …‘‡ ƒš …– ‘” …‘‡ ƒš —Ž‡• ƒ† –Š‡ ǡ –Š‡
’”‘˜‹•‹‘•‘ˆ–Š‡…–‘”–Š‡—Ž‡••ŠƒŽŽ’”‡˜ƒ‹Ž–‘–Šƒ–‡š–‡–Ǥ
ȋ‹˜Ȍ …ƒ•‡‘ˆ…‘ϐŽ‹…–„‡–™‡‡–Š‡Œ—†‹…‹ƒŽ’”‘‘—…‡‡–•ȀŒ—†‰‡‡–•ƒ†–Š‡ǡ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡
•ŠƒŽŽ’”‡˜ƒ‹Ž–‘–Šƒ–‡š–‡–Ǥ
ȋ˜Ȍ  •ŠƒŽŽ ƒ’’Ž› ‹””‡•’‡…–‹˜‡ ‘ˆ –Š‡ ƒ……‘—–‹‰ •–ƒ†ƒ”†• ƒ†‘’–‡† „› …‘’ƒ‹‡•ǡ ‹Ǥ‡Ǥǡ ‡‹–Š‡” ……‘—–‹‰
–ƒ†ƒ”†•‘”†ǦǤ
ȋ˜‹Ȍ Š‡’”‘˜‹•‹‘•‘ˆ•ŠƒŽŽ‘–ƒ’’Ž›ˆ‘”…‘’—–ƒ–‹‘‘ˆǤ‘™‡˜‡”‹–•ŠƒŽŽƒ’’Ž›ˆ‘”…‘’—–ƒ–‹‘‘ˆ
ƒ•  ‹• …‘’—–‡† ‘ ƒ†Œ—•–‡† –‘–ƒŽ ‹…‘‡ ™Š‹…Š ‹• †‡”‹˜‡† „› ƒ‹‰ •’‡…‹ϐ‹‡† ƒ†Œ—•–‡–• –‘ –‘–ƒŽ
‹…‘‡…‘’—–‡†ƒ•’‡”–Š‡”‡‰—Žƒ”’”‘˜‹•‹‘•‘ˆ–Š‡…–Ǥ
ȋ˜‹‹Ȍ •ŠƒŽŽƒŽ•‘ƒ’’Ž›–‘–Š‡’‡”•‘•…‘’—–‹‰‹…‘‡—†‡”–Š‡”‡Ž‡˜ƒ–’”‡•—’–‹˜‡–ƒšƒ–‹‘•…Š‡‡Ǥ ‘”
‡šƒ’Ž‡ǡ ˆ‘” …‘’—–‹‰ ’”‡•—’–‹˜‡ ‹…‘‡ ‘ˆ ƒ ’ƒ”–‡”•Š‹’ ϐ‹” —†‡” •‡…–‹‘ ͶͶ ‘ˆ –Š‡ …–ǡ –Š‡
’”‘˜‹•‹‘•‘ˆ‘‘•–”—…–‹‘‘–”ƒ…–‘”‡˜‡—‡”‡…‘‰‹–‹‘•ŠƒŽŽƒ’’Ž›ˆ‘”†‡–‡”‹‹‰–Š‡”‡…‡‹’–•
‘”–—”‘˜‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
‡–Š‘†‘ˆ……‘—–‹‰‹‡”–ƒ‹ƒ•‡•ȏ‡…–‹‘ͳͶͷȐ
‘”–Š‡’—”’‘•‡‘ˆ†‡–‡”‹‹‰–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz
ȋ‹Ȍ –Š‡˜ƒŽ—ƒ–‹‘‘ˆ‹˜‡–‘”›•ŠƒŽŽ„‡ƒ†‡ƒ–Ž‘™‡”‘ˆƒ…–—ƒŽ…‘•–‘”‡–”‡ƒŽ‹•ƒ„Ž‡˜ƒŽ—‡…‘’—–‡†‹ƒ……‘”†ƒ…‡
™‹–ŠǤ
ȋ‹‹Ȍ –Š‡ ˜ƒŽ—ƒ–‹‘ ‘ˆ ’—”…Šƒ•‡ ƒ† •ƒŽ‡ ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ƒ† ‘ˆ ‹˜‡–‘”› •ŠƒŽŽ „‡ ƒ†Œ—•–‡† –‘ ‹…Ž—†‡ –Š‡
ƒ‘—–‘ˆƒ›–ƒšǡ†—–›ǡ…‡••‘”ˆ‡‡ȋ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†Ȍƒ…–—ƒŽŽ›’ƒ‹†‘”‹…—””‡†„›–Š‡ƒ••‡••‡‡–‘
„”‹‰–Š‡‰‘‘†•‘”•‡”˜‹…‡•–‘–Š‡’Žƒ…‡‘ˆ‹–•Ž‘…ƒ–‹‘ƒ†…‘†‹–‹‘ƒ•‘–Š‡†ƒ–‡‘ˆ˜ƒŽ—ƒ–‹‘Ǥ
ȋ‹‹‹Ȍ –Š‡‹˜‡–‘”›„‡‹‰•‡…—”‹–‹‡•‘–Ž‹•–‡†‘ƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡ǡ‘”Ž‹•–‡†„—–‘–“—‘–‡†‘ƒ”‡…‘‰‹•‡†
•–‘…‡š…Šƒ‰‡ǡ•ŠƒŽŽ„‡˜ƒŽ—‡†ƒ–ƒ…–—ƒŽ…‘•–ƒ•‹‹–‹ƒŽŽ›”‡…‘‰‹•‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡Ǥ
ȋ‹˜Ȍ –Š‡‹˜‡–‘”›„‡‹‰•‡…—”‹–‹‡•Ž‹•–‡†ƒ†“—‘–‡†‘ƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡ǡ•ŠƒŽŽ„‡˜ƒŽ—‡†ƒ–Ž‘™‡”‘ˆ
ƒ…–—ƒŽ…‘•–‘”‡–”‡ƒŽ‹•ƒ„Ž‡˜ƒŽ—‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡Ǥ
”‘˜‹†‡†–Šƒ––Š‡‹˜‡–‘”›„‡‹‰•‡…—”‹–‹‡•Š‡Ž†„›ƒ•…Š‡†—Ž‡†„ƒ‘”’—„Ž‹…ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘•ŠƒŽŽ„‡˜ƒŽ—‡†
‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ƒˆ–‡”–ƒ‹‰‹–‘ƒ……‘—––Š‡‡š–ƒ–‰—‹†‡Ž‹‡•‹••—‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ‹
–Š‹•”‡‰ƒ”†Ǥ
ƒšƒ„‹Ž‹–›‘ˆ‡”–ƒ‹…‘‡ȏ‡…–‹‘ͳͶͷȐ
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰–‘–Š‡…‘–”ƒ”›…‘–ƒ‹‡†‹•‡…–‹‘ͳͶͷǡ–Š‡‹–‡”‡•–”‡…‡‹˜‡†„›ƒƒ••‡••‡‡‘ƒ›
…‘’‡•ƒ–‹‘‘”‘‡Šƒ…‡†…‘’‡•ƒ–‹‘ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–‹•
”‡…‡‹˜‡†Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͳͺͻ

›…Žƒ‹ˆ‘”‡•…ƒŽƒ–‹‘‘ˆ’”‹…‡‹ƒ…‘–”ƒ…–‘”‡š’‘”–‹…‡–‹˜‡••ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•
›‡ƒ”‹™Š‹…Š”‡ƒ•‘ƒ„Ž‡…‡”–ƒ‹–›‘ˆ‹–•”‡ƒŽ‹•ƒ–‹‘‹•ƒ…Š‹‡˜‡†Ǥ
—„•‹†›‘”‰”ƒ–ˆ”‘
‘˜‡”‡–ƒ•”‡ˆ‡””‡†‹†‡ϐ‹‹–‹‘‘ˆ‹…‘‡—†‡”•‡…–‹‘ʹȋʹͶȌ‘ˆ–Š‡…–ǡ•ŠƒŽŽ†‡‡‡†–‘„‡
–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–‹•”‡…‡‹˜‡†ǡ‹ˆ‘–…Šƒ”‰‡†–‘‹…‘‡Ǧ–ƒš‹ƒ›‡ƒ”Ž‹‡”’”‡˜‹‘—•›‡ƒ”Ǥ

…‘‡‡ƒ”‡†‹ƒ•Š‘”‹‹†
Š‡‹…‘‡–Šƒ–‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‹•Š‡ƒ†ƒ›„‡”‡ƒŽ‹•‡†„›–Š‡ƒ••‡••‡‡‹…ƒ•Š‘”‹†Ǥ…ƒ•‡•™Š‡”‡
–Š‡’”‘ϐ‹–‹•”‡ƒŽ‹•‡†‹ƒ›‘–Š‡”ˆ‘”–Šƒ…ƒ•Šǡ–Š‡ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡…‘‘†‹–›”‡…‡‹˜‡†ƒ•‹…‘‡•Š‘—Ž†„‡
–ƒ‡–‘„‡–Š‡“—ƒ–—‘ˆ‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ˜‡‹…ƒ•‡•™Š‡”‡ƒƒ••‡••‡‡‹•‹”‡…‡‹’–‘ˆ‘‡›ˆ”‘
Š‹• …Ž‹‡–• ‘” ‘–Š‡” ’‡”•‘• ™Š‘ ƒ”‡ —†‡” ‘ ‘„Ž‹‰ƒ–‹‘ –‘ ƒ‡ •—…Š ’ƒ›‡–ǡ –Š‡ ƒ••‡••‡‡ ™‘—Ž† •–‹ŽŽ „‡
…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹ˆ–Š‡•‡‘‹‡•™‡”‡”‡…‡‹˜‡†„›Š‹‹–Š‡‘”†‹ƒ”›…‘—”•‡‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ ‘”‹•–ƒ…‡ǡ
ƒ›ƒ‘—–’ƒ‹†–‘ƒ‘’ƒ›‡…”‡–ƒ”›„›ƒ’‡”•‘™Š‘Šƒ•‘–„‡‡Š‹•…Ž‹‡–„—–™Š‘Šƒ•„‡‡„‡‡ϐ‹–‡†„›Š‹•
’”‘ˆ‡••‹‘ƒŽ•‡”˜‹…‡–‘ƒ‘–Š‡”ǡ™‘—Ž†„‡ƒ••‡••ƒ„Ž‡ƒ•–Š‡‘’ƒ›‡…”‡–ƒ”›ǯ•‹…‘‡ˆ”‘’”‘ˆ‡••‹‘Ǥ
Š‡’‡”•‘…ƒ””›‹‰‘–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘™‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‹•Š‡ƒ†”‡‰ƒ”†Ž‡••‘ˆ–Š‡ˆƒ…–
–Šƒ––Š‡’”‘ϐ‹–•‘”‰ƒ‹•ƒ†‡„›Š‹—Ž–‹ƒ–‡Ž›‰‘–‘–Š‡„‡‡ϐ‹–‘ˆ•‘‡‘–Š‡”’‡”•‘‘”–‘–Š‡„—•‹‡••…‘—‹–›
‘”’—„Ž‹…„‘†›ƒ•ƒ™Š‘Ž‡Ǥ‘–Š‡”™‘”†•ǡ–Š‡•—„•‡“—‡–ƒ’’Ž‹…ƒ–‹‘‘ˆ–Š‡‘‡›†‡”‹˜‡†„›™ƒ›‘ˆ‹…‘‡ˆ”‘
„—•‹‡••‹•‹ƒ–‡”‹ƒŽˆ‘”–Š‡’—”’‘•‡‘ˆƒ••‡••‡–‘ˆ–Š‡„—•‹‡••ƒǤ

‘–‹—ƒ–‹‘‘ˆ—•‹‡••‘””‘ˆ‡••‹‘
Š‡…Šƒ”‰‡ƒ„‹Ž‹–›–‘–ƒš—†‡”‡…–‹‘ʹͺ‹•„ƒ•‡†’”‹ƒ”‹Ž›—’‘–Š‡…‘†‹–‹‘–Šƒ––Š‡ƒ••‡••‡‡—•–Šƒ˜‡…ƒ””‹‡†‘ƒ
„—•‹‡••‘”’”‘ˆ‡••‹‘ƒ–ƒ›–‹‡†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”ǡ–Š‘—‰Š‘–‡…‡••ƒ”‹Ž›–Š”‘—‰Š‘—––Š‡ƒ……‘—–‹‰›‡ƒ”Ǥ
—––Š‡”‡ƒ›„‡ƒˆ‡™…ƒ•‡•ȋ‡Ǥ‰Ǥǡ†‡‡‡†’”‘ϐ‹–•–ƒšƒ„Ž‡—†‡”‡…–‹‘ͶͳȌ™Š‡”‡‡˜‡‹ˆ‘„—•‹‡••‹•…ƒ””‹‡†‘
†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”ǡ–Š‡ƒ••‡••‡‡™‘—Ž†•–‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ

™‡”•Š‹’‘ˆ—•‹‡••‹•‘–‡…‡••ƒ”›ˆ‘”ƒšƒ„‹Ž‹–›
‘”†‡”–‘„‡–ƒšƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡‹…‘‡‘ˆƒ„—•‹‡••ǡ‹–‹•‘–‡••‡–‹ƒŽ–Šƒ––Š‡„—•‹‡••—•–„‡…ƒ””‹‡†‘
„› –Š‡ •ƒ‡ ’‡”•‘ ™Š‘ ‹• –Š‡ ‘™‡” –Š‡”‡‘ˆǤ ˜‡ ‹ˆ –Š‡ ‘™‡” ƒ—–Š‘”‹•‡• •‘‡ ‘–Š‡” ’‡”•‘ –‘ …ƒ””› ‘ –Š‡
„—•‹‡••‘Š‹•„‡ŠƒŽˆ‘”–Š‡‘™‡”‹•†‡’”‹˜‡†„›–Š‡…‘—”–—†‡”…‡”–ƒ‹…‹”…—•–ƒ…‡•‘ˆ–Š‡”‹‰Š––‘…ƒ””›‘Š‹•
‘™„—•‹‡••ǡ–Š‡‘™‡”™‹ŽŽ•–‹ŽŽ„‡–ƒšƒ„Ž‡—†‡”–Š‹•Š‡ƒ†Ǥ
‹‹Žƒ”Ž›ǡ ‹– ‹• ‘– ‘Ž› –Š‡ Ž‡‰ƒŽ ‘™‡”•Š‹’ „—– ƒŽ•‘ –Š‡ „‡‡ϐ‹…‹ƒŽ ‘™‡”•Š‹’ –Šƒ– Šƒ• –‘ „‡ …‘•‹†‡”‡†Ǥ  –Š‹•
…‘‡…–‹‘‹–Šƒ•–‘„‡‡’–‹˜‹‡™ǡƒ•–‘™Š‘‹•–Š‡ƒ…–—ƒŽ”‡…‹’‹‡–‘ˆ–Š‡‹…‘‡™Š‹…Š‹•‰‘‹‰–‘„‡–ƒš‡†Ǥ
‘”‡šƒ’Ž‡ǡ™Š‡”‡ƒ„—•‹‡••‹•ƒ…“—‹”‡†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆƒ…‘’ƒ›™Š‹…Š‹•‰‘‹‰–‘„‡‹…‘”’‘”ƒ–‡†ƒ†–Š‡
’”‘‘–‡”• …ƒ””› ‘ –Š‡ „—•‹‡•• ƒ† ‡ƒ” ’”‘ϐ‹–• †—”‹‰ –Š‡ ’‡”‹‘† ’”‹‘” –‘ –Š‡ ‹…‘”’‘”ƒ–‹‘ǡ ‹ˆ –Š‡ …‘’ƒ›
ƒ……‡’–•–Š‡ƒ…–‹‘‘ˆ–Š‡’”‘‘–‡”•ƒ†”‡…‡‹˜‡•ˆ”‘–Š‡–Š‡’ƒ•–’”‘ϐ‹–•ƒ†‡’”‹‘”–‘‹–•‹…‘”’‘”ƒ–‹‘ǡ–Š‡
…‘’ƒ›•ŠƒŽŽ„‡ƒ••‡••ƒ„Ž‡—†‡”–Š‹••‡…–‹‘‹”‡•’‡…–‘ˆ•—…Š’”‘ϐ‹–•ƒŽ–Š‘—‰Š„‡ˆ‘”‡–Š‡‹…‘”’‘”ƒ–‹‘‘ˆ–Š‡
…‘’ƒ›–Š‡’”‘‘–‡”•™‡”‡–Š‡Ž‡‰ƒŽ‘™‡”•‘ˆ–Š‹•„—•‹‡••›‡–ƒ•–Š‡…‘’ƒ›™ƒ•–Š‡„‡‡ϐ‹…‹ƒŽ‘™‡”ȋƒ•‹–
Šƒ•ƒ…–—ƒŽŽ›”‡…‡‹˜‡†–Š‡’”‘ϐ‹–•Ȍ‘ˆ–Š‡„—•‹‡••ǡ‹–™‹ŽŽ„‡ƒ••‡••ƒ„Ž‡‘–Š‡•‡’”‘ϐ‹–•Ǥȏ˜Ǥ‹ŒŽ‹‘––‘‹ŽŽ•–†Ǥ
ȋͳͻͷ͵Ȍʹ͵’Ǥʹ͹ͺȐǤ

—•‹‡••ƒ›„‡‡‰ƒŽ‘”ŽŽ‡‰ƒŽ
Š‹Ž‡’”‘ϐ‹–‘–‹˜‡‹•‹†‹…ƒ–‹˜‡‘ˆ–Š‡ˆƒ…––Šƒ––Š‡ƒ†˜‡–—”‡‘ˆƒƒ••‡••‡‡‹•‹–Š‡ƒ–—”‡‘ˆ–”ƒ†‡ƒ†…‘•‡“—‡–Ž›
…‘•–‹–—–‡•ƒ„—•‹‡••ǡ‹–‹•‹ƒ–‡”‹ƒŽ™Š‡–Š‡”–Š‡„—•‹‡••‹•Ž‡‰ƒŽ‘”‹ŽŽ‡‰ƒŽǤ‘–Š‡”™‘”†•ǡ–Š‡–ƒšƒ„‹Ž‹–›‘ˆ–Š‡
‹…‘‡ˆ”‘„—•‹‡••†‘‡•‘–‹ƒ›™ƒ›†‡’‡†—’‘‘”‹•ƒˆˆ‡…–‡†„›–Š‡–ƒ‹–‘ˆ‹ŽŽ‡‰ƒŽ‹–›‹–Š‡‹…‘‡‘”–Š‡
•‘—”…‡•Ǥ…‘‡†‡”‹˜‡†ˆ”‘‹ŽŽ‡‰ƒŽƒ…–‹˜‹–‹‡•‹•ƒ•—…Š…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•‹…‘‡ˆ”‘‘–Š‡”‘’‡”ƒ–‹‘•ǤŠ‡
ˆƒ…––Šƒ––Š‡’‡”•‘™Š‘…ƒ””‹‡†‘–Š‡‹ŽŽ‡‰ƒŽƒ…–‹˜‹–‹‡•‹•’—‹•Šƒ„Ž‡—†‡”–Š‡ƒ’’”‘’”‹ƒ–‡Žƒ™ǡ†‘‡•‘–‡š…Ž—†‡
Š‹ˆ”‘–Š‡Ž‹ƒ„‹Ž‹–›–‘‹…‘‡Ǧ–ƒšǤ
˜‡–Š‡„‡‡ϐ‹–•Ȁ†‡†—…–‹‘•—†‡”–Š‡…–ƒ”‡‘–†‡‹‡†‡”‡‘–Š‡‰”‘—†•‘ˆ‹ŽŽ‡‰‹„‹Ž‹–›‘ˆ„—•‹‡••Ǥ•’‡”–Š‡
—’”‡‡‘—”– —†‰‡‡–‹–Š‡…ƒ•‡‘ˆ”ǤǤǤ—”‡•Š‹–Š‡Ž‘••ƒ”‹•‹‰‘ƒ……‘—–‘ˆ…‘ϐ‹•…ƒ–‹‘‘ˆŠ‡”‘‹ȋ†”—‰•Ȍ
‹•ƒ„—•‹‡••Ž‘••‡˜‡‹–‹•‹ŽŽ‡‰ƒŽ„—•‹‡••Ǥ—…ŠŽ‘••…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡’”‘ϐ‹–•‘ˆŽ‡‰ƒŽ„—•‹‡••Ǥ
 ͳͻͲ Lesson 4 Ȉ EP-TL

”‘ϐ‹–‘–‹˜‡‹•‘––Š‡‘Ž‡‘•‹†‡”ƒ–‹‘ˆ‘”ƒšƒ„‹Ž‹–›
Š‡”‡ƒ›„‡ƒ••‡••‡‡•™Š‘…ƒ””›‘„—•‹‡••™‹–Š‘—––Š‡’”‹ƒ”›‘„Œ‡…–‘ˆƒ‹‰’”‘ϐ‹–•ȋ‡Ǥ‰Ǥǡƒ…‘Ǧ‘’‡”ƒ–‹˜‡
•‘…‹‡–›™Š‹…Š–”‹‡•–‘…ƒ–‡”–‘–Š‡‡‡†•‘ˆ‹–•‡„‡”•™‹–Š‘—––Š‡‘„Œ‡…–‘ˆƒ‹‰ƒš‹—’”‘ϐ‹–•ȌǤ˜‡‹
•—…Š …ƒ•‡•ǡ ‹ˆ ’”‘ϐ‹–• ƒ”‹•‡ ˆ”‘ –Š‡ „—•‹‡•• …ƒ””‹‡† ‘ „› –Š‡ ƒ••‡••‡‡ ƒ† •—…Š ’”‘ϐ‹–• ƒ”‡ ‹…‹†‡–ƒŽ –‘ –Š‡
„—•‹‡••ǡ–Š‡ƒ••‡••‡‡™‘—Ž†•–‹ŽŽ„‡–ƒšƒ„Ž‡ǤŠ‡”‡ˆ‘”‡ǡ’”‘ϐ‹–‘–‹˜‡‹•‘––Š‡‘Ž›–‡•–‘ˆ†‡–‡”‹‹‰–Š‡–ƒšƒ„‹Ž‹–›
‘ˆ‹…‘‡ˆ”‘ƒ›ƒ…–‹˜‹–›…‘•–‹–—–‹‰„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ

‘’—–ƒ–‹‘‘ˆ…‘‡‡’ƒ”ƒ–‡Ž›ˆ‘”‡ƒ…Š—•‹‡••
–ƒš’ƒ›‡”‹•‡–‹–Ž‡†–‘…ƒ””›‘ƒ•ƒ›—„‡”‘ˆ„—•‹‡••‡•ƒ•Š‡’‘••‹„Ž›…ƒǡ„‘–Š‹Š‹•‘™ƒ‡ƒ†‹–Š‡
ƒ‡‘ˆ‘–Š‡”•ǤŠ‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒŽŽ„—•‹‡••‡•‘”’”‘ˆ‡••‹‘•™‘—Ž†„‡ƒ••‡••ƒ„Ž‡—†‡”–Š‹•Š‡ƒ†Ǥ—––Š‡
’”‘ϐ‹–‘ˆ‡ƒ…Š„—•‹‡••—•–„‡…‘’—–‡†•‡’ƒ”ƒ–‡Ž›ˆ”‘‘‡ƒ‘–Š‡”ƒ†–Š‡†‡†—…–‹‘•ƒ†ƒŽŽ‘™ƒ…‡’‡”‹••‹„Ž‡
–‘‡ƒ…Š„—•‹‡••—•–„‡ƒŽŽ‘™‡†ƒ‰ƒ‹•––Š‡‹…‘‡†‡”‹˜‡†–Š‡”‡ˆ”‘ǤŠ‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‹•Š‡ƒ†‹•
–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡‡–”‡•—Ž–‘ˆ–Š‡˜ƒ”‹‘—•„—•‹‡••‘”„—•‹‡••‡•‘”’”‘ˆ‡••‹‘ȋ•Ȍ…ƒ””‹‡†‘†—”‹‰–Š‡ƒ……‘—–‹‰
›‡ƒ”ǤŠ—•ǡ–Š‡Ž‘••ƒ”‹•‹‰ˆ”‘‘‡„—•‹‡••™‘—Ž†„‡•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡ˆ”‘ƒ‘–Š‡”„—•‹‡••ˆƒŽŽ‹‰—†‡”
–Š‡•ƒ‡Š‡ƒ†ƒ†–Š‡‡–”‡•—Ž–ƒˆ–‡”•—…Š•‡–‘ˆˆ™‘—Ž†ƒŽ‘‡„‡ƒ••‡••ƒ„Ž‡‹…‘‡—†‡”–Š‹•Š‡ƒ†Ǥ

    

Š‡ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ƒ”‡ …‘’—–‡† ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ’”‘˜‹•‹‘• …‘–ƒ‹‡† ‹
‡…–‹‘•͵Ͳ–‘Ͷ͵Ǥ‡…–‹‘•͵Ͳ–‘͵͸…‘–ƒ‹–Š‘•‡•’‡…‹ϐ‹…†‡†—…–‹‘•™Š‹…Šƒ”‡‡š’”‡••Ž›ƒŽŽ‘™‡†™Š‹Ž‡‡…–‹‘
͵͹ȋͳȌ‡š–‡†•–Š‡ƒŽŽ‘™ƒ…‡–‘‹–‡•‘ˆ„—•‹‡••‡š’‡†‹–—”‡‘–…‘˜‡”‡†„›•‡…–‹‘•͵Ͳ–‘͵͸™Š‹…Šƒ”‡‘–Š‡”™‹•‡
ƒŽŽ‘™ƒ„Ž‡ƒ……‘”†‹‰–‘ƒ……‡’–‡†…‘‡”…‹ƒŽ’”ƒ…–‹…‡•ǡ™Š‹Ž‡…‘’—–‹‰’”‘ϐ‹–•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ‡…–‹‘
ͶͲ ’”‘˜‹†‡• –Š‘•‡ ‡š’‡•‡• ™Š‹…Š ƒ”‡ ƒŽŽ‘™‡† ‘ –Š‡ „ƒ•‹• ‘ˆ ‰‡‡”ƒŽ …‘‡”…‹ƒŽ ’”‹…‹’Ž‡• ™Š‹Ž‡ …‘’—–‹‰
’”‘ϐ‹–•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ–‹•‡…‡••ƒ”›–‘‘™–Š‘•‡’”‹…‹’Ž‡•„‡ˆ‘”‡•–—†›‹‰–Š‡†‡†—…–‹‘•‡š’”‡••Ž›
ƒŽŽ‘™‡†™Š‹Ž‡…‘’—–‹‰’”‘ϐ‹–•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ
Š‡‰‡‡”ƒŽ…‘‡”…‹ƒŽ’”‹…‹’Ž‡•ƒ”‡ƒ•—†‡”ǣ
 …Žƒ”‹ϐ‹‡† –Šƒ– –Š‡ ‹…‘‡ ˆ”‘ Ž‡––‹‰ ‘—– ‘ˆ ’”‡‹•‡•Ȁ†‡˜‡Ž‘’‡† •’ƒ…‡ ƒŽ‘‰ ™‹–Š ‘–Š‡” ˆƒ…‹Ž‹–‹‡• ‹ ƒ
‹†—•–”‹ƒŽ’ƒ”Ȁ‹•–‘„‡…Šƒ”‰‡†–‘–ƒš—†‡”–Š‡Š‡ƒ†Ǯ”‘ϐ‹–•ƒ†
ƒ‹•‘ˆ—•‹‡••ǯƒ†‘–—†‡”–Š‡Š‡ƒ†
Dz…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›dzǤ

‡‡”ƒŽ‘‡”…‹ƒŽ”‹…‹’Ž‡•

Ȉ ”‘ϐ‹–••Š‘—Ž†„‡…‘’—–‡†ƒ……‘”†‹‰–‘–Š‡‡–Š‘†‘ˆƒ……‘—–‹‰”‡‰—Žƒ”Ž›‡’Ž‘›‡†„›–Š‡ƒ••‡••‡‡ǡ
’”‘˜‹†‡†–Šƒ–ƒ…–—ƒŽ’”‘ˆ‹–…ƒ„‡ƒ•…‡”–ƒ‹‡†„›–Š‹•‡–Š‘†ǡ™Š‡–Š‡”‘”‡…‡‹’–„ƒ•‹•‘”ƒ……”—ƒŽ
„ƒ•‹•Ǥ
Ȉ Ž›–Š‘•‡‡š’‡•‡•ƒ†Ž‘••‡•ƒ”‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘•™Š‹…Š™‡”‡‹…—””‡†‘”•—•–ƒ‹‡††—”‹‰–Š‡
”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ƒ†”‡Žƒ–‡†–‘„—•‹‡••Ǥ
Ȉ Š‡•‡Ž‘••‡•ƒ†‡š’‡•‡••Š‘—Ž†„‡‹…‹†‡–ƒŽ–‘–Š‡‘’‡”ƒ–‹‘‘ˆ–Š‡„—•‹‡••Ǥ ‘”‡šƒ’Ž‡ǡ‡„‡œœŽ‡‡–
„›ƒ‡’Ž‘›‡‡†—”‹‰–Š‡…‘—”•‡‘ˆ„—•‹‡••‹•ƒŽ‘••‹…‹†‡–ƒŽ–‘–Š‡„—•‹‡••Ǥ
Ȉ ˆƒ„—•‹‡••Šƒ•„‡‡†‹•…‘–‹—‡†„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‹–ǯ•‡š’‡•‡•…ƒ‘–
„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘ƒ‰ƒ‹•––Š‡‹…‘‡‘ˆƒ›‘–Š‡””—‹‰„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡Ǥ
Ȉ Š‡”‡ƒ”‡•‘‡‡••‡–‹ƒŽ‡š’‡•‡•ǡ–Š‘—‰Š‡‹–Š‡”‡š’”‡••Ž›ƒŽŽ‘™‡†‘”†‹•ƒŽŽ‘™‡†ǡ„—–ƒ”‡†‡†—…–‹„Ž‡
™Š‹Ž‡ …‘’—–‹‰ –Š‡ ’”‘ϐ‹–• ‘ˆ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ‘ –Š‡ „ƒ•‹• ‘ˆ ‰‡‡”ƒŽ …‘‡”…‹ƒŽ ’”‹…‹’Ž‡•
’”‘˜‹†‡†–Šƒ––Š‡•‡ƒ”‡‘–‡š’‡•‡•‘”Ž‘••‡•‘ˆƒ…ƒ’‹–ƒŽƒ–—”‡‘”’‡”•‘ƒŽƒ–—”‡Ǥ
Ȉ ›‡š’‡†‹–—”‡‹…—””‡†‹…‘•‹†‡”ƒ–‹‘‘ˆ…‘‡”…‹ƒŽ‡š’‡†‹‡…›‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ
Ȉ ‡†—…–‹‘…ƒ„‡ƒ†‡ˆ”‘–Š‡‹…‘‡‘ˆ–Šƒ–„—•‹‡••‘Ž›ˆ‘”™Š‹…Š–Š‡‡š’‡•‡•™‡”‡‹…—””‡†ǤŠ‡
‡š’‡•‡•‘ˆ‘‡„—•‹‡••…ƒ‘–„‡…Šƒ”‰‡†ƒ‰ƒ‹•––Š‡‹…‘‡‘ˆƒ›‘–Š‡”„—•‹‡••Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͳͻͳ

       Dz  

   
 dz

‡–”‘ϐ‹–ƒ•’‡””‘ϐ‹–ƒ†‘••……‘—– ššš
Add ǣƒ†‹••‹„Ž‡‡š’‡•‡•†‡„‹–‡†–‘’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—– ššš
Add ǣ‡‡‡†‹…‘‡•‘–…”‡†‹–‡†–‘’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—– ššš
Less ǣ‡†—…–‹„Ž‡‡š’‡•‡•‘–†‡„‹–‡†–‘’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—– ȋšššȌ
Less ǣ…‘‡•…Šƒ”‰‡ƒ„Ž‡—†‡”‘–Š‡”Š‡ƒ†•…”‡†‹–‡†–‘”‘ϐ‹–Ƭ‘••Ȁ… ȋšššȌ



ͳǤ ‡–ǡ”ƒ–‡•ǡ”‡’ƒ‹”•ƒ†‹•—”ƒ…‡ˆ‘”„—‹Ž†‹‰•ȏ‡…–‹‘͵ͲȐ
ʹǤ ‡’ƒ‹”•ƒ†‹•—”ƒ…‡ˆ‘”Žƒ–Ƭƒ…Š‹‡”›ǡ —”‹–—”‡ȏ‡…–‹‘͵ͳȐ
͵Ǥ ‡’”‡…‹ƒ–‹‘ȏ‡…–‹‘͵ʹȐ
ͶǤ ˜‡•–‡–‹‡™’Žƒ–‘”ƒ…Š‹‡”›‹‘–‹ϐ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•‹…‡”–ƒ‹–ƒ–‡•ȏ‡…–‹‘͵ʹȐ
ͷǤ ‡ƒȀ‘ˆˆ‡‡Ȁ—„„‡”‡˜‡Ž‘’‡–……‘—–ȏ‡…–‹‘͵͵Ȑ
͸Ǥ ‹–‡”‡•–‘”ƒ–‹‘ˆ—†ȏ‡…–‹‘͵͵Ȑ
͹Ǥ …‹‡–‹ϐ‹…‡•‡ƒ”…Šȏ‡…–‹‘͵ͷȐ
ͺǤ ‘”–‹œƒ–‹‘‘ˆ’‡…–”—ˆ‡‡•ȏ‡…–‹‘͵ͷȐ
ͻǤ š’‡†‹–—”‡‘–‡Ž‡…‘Ž‹…‡…‡ȏ‡…–‹‘͵ͷȐ
ͳͲǤ š’‡†‹–—”‡‘ˆ…ƒ’‹–ƒŽƒ–—”‡‹…—””‡†‹”‡•’‡…–‘ˆ•’‡…‹ϐ‹‡†„—•‹‡••ȏ‡…–‹‘͵ͷȐ
ͳͳǤ š’‡†‹–—”‡ „› ™ƒ› ‘ˆ ƒ›‡– –‘ ••‘…‹ƒ–‹‘• ƒ† •–‹–—–‹‘• ˆ‘” …ƒ””›‹‰ ‘—– —”ƒŽ ‡˜‡Ž‘’‡–
”‘‰”ƒ‡•ȏ‡…–‹‘͵ͷȐ
ͳʹǤ š’‡†‹–—”‡‘‰”‹…—Ž–—”ƒŽ‡š–‡•‹‘’”‘Œ‡…–ȏ‡…–‹‘͵ͷȐ
ͳ͵Ǥ š’‡†‹–—”‡‘•‹ŽŽ†‡˜‡Ž‘’‡–’”‘Œ‡…–ȏ‡…–‹‘͵ͷȐ
ͳͶǤ ‘”–‹œƒ–‹‘‘ˆ”‡Ž‹‹ƒ”›š’‡•‡•ȏ‡…–‹‘͵ͷȐ
ͳͷǤ ‘”–‹œƒ–‹‘‘ˆš’‡†‹–—”‡‹–Š‡…ƒ•‡‘ˆ‘Ž—–ƒ”›‡–‹”‡‡–…Š‡‡ȏ‡…–‹‘͵ͷȐ
ͳ͸Ǥ –Š‡”‡†—…–‹‘•ȏ‡…–‹‘͵͸Ȑ
ͳ͹Ǥ –Š‡”š’‡•‡•ȏ‡…–‹‘͵͹Ȑ
‡–ǡƒ–‡•ǡ‡’ƒ‹”•ƒ†•—”ƒ…‡ˆ‘”—‹Ž†‹‰•ȏ‡…–‹‘͵ͲȐ
Š‹••‡…–‹‘ƒŽŽ‘™•–Š‡†‡†—…–‹‘‹”‡•’‡…–‘ˆ”‡–ǡ”ƒ–‡•ǡ”‡’ƒ‹”•ƒ†‹•—”ƒ…‡ˆ‘”„—‹Ž†‹‰•–Šƒ–ƒ”‡—•‡†„›–Š‡
ƒ••‡••‡‡ˆ‘”Š‹•„—•‹‡••Ȁ’”‘ˆ‡••‹‘Ǥ
Ȉ ”‘’‡”–›’ƒ”–Ž›—•‡†ǣˆ–Š‡’”‘’‡”–›‹•’ƒ”–Ž›—•‡†ǡ–Š‡†‡†—…–‹‘™‹ŽŽ„‡’”‘’‘”–‹‘ƒ–‡–‘–Š‡—•‡Ǥ
Ȉ ƒ”–‘ˆ–Š‡’”‘’‡”–›‹••—„ǦŽ‡–ǣ…ƒ•‡’ƒ”–‘ˆ–Š‡’”‘’‡”–›‹••—„ǦŽ‡–ǡ–Š‡†‹ˆˆ‡”‡–‹ƒŽǡ‹Ǥ‡Ǥǡ”‡–’ƒ‹†‹—•
”‡–”‡…‘˜‡”‡†™‘—Ž†„‡ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘Ǥ
Ȉ ……—’ƒ–‹‘„›‘™‡”Š‹•‡Žˆǣ‘‘–‹‘ƒŽ”‡–‹•ƒŽŽ‘™ƒ„Ž‡ˆ‘”‘™‡†’”‘’‡”–‹‡•Ǥ
Ȉ ‡’ƒ‹”‘ˆ–Š‡’”‡‹•‡•ǣ‡’ƒ‹”•—†‡”–ƒ‡ǡ™Š‡–Š‡”ƒ•ƒ‘™‡”Ȁ–‡ƒ–ǡƒ”‡ƒŽŽ‘™‡†Ǥ
Ȉ š’‡•‡• ‡†—…–‹‘ǣ —‹…‹’ƒŽ –ƒš‡•ǡ ”ƒ–‡•ǡ ‹•—”ƒ…‡ ‹…—””‡† „› –Š‡ ƒ••‡••‡‡ ˆ‘” –Š‡ ’”‘’‡”–› ‹• ƒŽ•‘
ƒŽŽ‘™‡†Ǥ
 ͳͻʹ Lesson 4 Ȉ EP-TL

‡†—…–‹‘‘ˆ‡š’‡•‡•‘–Š‡„ƒ•‹•‘ˆ—•ƒ‰‡ǣ

‡…–‹‘͵ͺ‘ˆ–Š‡…–’”‘˜‹†‡•ˆ‘”–Š‡ƒŽŽ‘™ƒ…‡‘ˆ–Š‡’”‘’‘”–‹‘ƒ–‡ƒ‘—–‘ˆ–Š‡‡š’‡•‡•™Š‡”‡–Š‡ƒ••‡••‡‡
—•‡•–Š‡’”‡‹•‡•’ƒ”–Ž›ˆ‘”Š‹•„—•‹‡••‘”’”‘ˆ‡••‹‘ƒŽ’—”’‘•‡•ƒ†’ƒ”–Ž›ˆ‘”‘–Š‡”’—”’‘•‡•–Š‡†‡†—…–‹‘
ƒŽŽ‘™ƒ„Ž‡ —†‡” –Š‹• •‡…–‹‘ ‹• ƒ •— ’”‘’‘”–‹‘ƒ–‡ –‘ –Šƒ– ’ƒ”– ‘ˆ –Š‡ ‡š’‡•‡• ™Š‹…Š ƒ”‡ ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡
’”‡‹•‡•—•‡†ˆ‘”„—•‹‡••‘”’”‘ˆ‡••‹‘ƒŽ’—”’‘•‡•Ǥˆ–Š‡ƒ••‡••‡‡‹•–Š‡‘™‡”‘ˆ–Š‡„—‹Ž†‹‰™Š‹…Š‹•—•‡†ˆ‘”
„—•‹‡••‘”’”‘ˆ‡••‹‘ƒŽ’—”’‘•‡•ǡ‘†‡†—…–‹‘™‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡‘–‹‘ƒŽ”‡–™Š‹…Š™‘—Ž†
‘–Š‡”™‹•‡Šƒ˜‡„‡‡’ƒ›ƒ„Ž‡Ǥ—–†‡’”‡…‹ƒ–‹‘—†‡”‡…–‹‘͵ʹ™‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ•—…Š„—‹Ž†‹‰•Ǥ
…ƒ•‡• ™Š‡”‡ ƒ ϐ‹” …ƒ””‹‡• ‘ ƒ „—•‹‡•• ‹ –Š‡ ’”‡‹•‡• ‘™‡† „› ‘‡ ‘ˆ ‹–• ’ƒ”–‡”• –Š‡ ”‡– ’ƒ›ƒ„Ž‡ –‘ –Š‡
’ƒ”–‡”™‘—Ž†„‡ƒƒŽŽ‘™ƒ„Ž‡†‡†—…–‹‘•‹…‡–Š‡ϐ‹”ƒ†–Š‡’ƒ”–‡”•ƒ”‡•‡’ƒ”ƒ–‡‡–‹–‹‡•Ǥ
‹‹Žƒ”Ž›™Š‡”‡ƒ›„—‹Ž†‹‰ǡƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡‹•‘–‡š…Ž—•‹˜‡Ž›—•‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡„—•‹‡••
‘”’”‘ˆ‡••‹‘ǡ–Š‡†‡†—…–‹‘•—†‡”‡…–‹‘͵Ͳǡ‡…–‹‘͵ͳƒ†‡…–‹‘͵ʹ•ŠƒŽŽ„‡”‡•–”‹…–‡†–‘ƒˆƒ‹”’”‘’‘”–‹‘ƒ–‡
’ƒ”– –Š‡”‡‘ˆ ™Š‹…Š –Š‡ ••‡••‹‰ ˆϐ‹…‡” ƒ› †‡–‡”‹‡ǡ Šƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ —•‡” ‘ˆ •—…Š „—‹Ž†‹‰ǡ ƒ…Š‹‡”›ǡ
’Žƒ–‘”ˆ—”‹–—”‡ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ

‡’ƒ‹”•ƒ†•—”ƒ…‡ˆ‘”Žƒ–Ƭƒ…Š‹‡”›ǡ —”‹–—”‡ȏ‡…–‹‘͵ͳȐ

Š‹• •‡…–‹‘ ƒŽŽ‘™• †‡†—…–‹‘ ‹ ”‡•’‡…– ‘ˆ ‡š’‡•‡• ‘ …—””‡– ”‡’ƒ‹”• ƒ† ‹•—”ƒ…‡ ‘ˆ Žƒ– Ƭ ƒ…Š‹‡”›ǡ Ƭ
ˆ—”‹–—”‡—•‡†ˆ‘”„—•‹‡••Ȁ’”‘ˆ‡••‹‘Ǥ
Ȉ •ƒ‰‡‘ˆ–Š‡••‡–ǣŽŽ‘™ƒ„Ž‡‹ˆ—ŽŽǡ‡˜‡‹ˆ—•‡†ˆ‘”’ƒ”–‘ˆ–Š‡›‡ƒ”Ǥ
Ȉ ‡’ƒ‹”•ǣ—””‡–”‡’ƒ‹”•™Š‹…Šƒ”‡‘ˆ…ƒ’‹–ƒŽƒ–—”‡ƒ”‡ǯ–ƒŽŽ‘™‡†Ǥ
Ȉ •—”ƒ…‡”‡‹—ǣ•—”ƒ…‡’”‡‹—’ƒ‹†–‘‹•—”‡–Š‡ƒ••‡–•ƒ‰ƒ‹•–”‹••‘ˆŽ‘••‡•‘™‹‰–‘†ƒƒ‰‡Ȁ
†‡•–”—…–‹‘ǡ’”‘˜‹†‡†–Šƒ––Š‡ƒ••‡–•ƒ”‡—•‡†ˆ‘”„—•‹‡••Ȁ’”‘ˆ‡••‹‘ƒ”‡ƒŽŽ‘™‡†ǡ‘Ž›‹ˆ–Š‡•‡’”‡‹—•
ƒ”‡’ƒ‹†Ȁ’ƒ›ƒ„Ž‡†—”‹‰–Š‡”‡˜‹‘—•‡ƒ”Ǥ
NoteǣŠ‡ƒ••‡••‡‡‹•‡–‹–Ž‡†ˆ‘”†‡†—…–‹‘‹”‡•’‡…–‘ˆ”‡’ƒ‹”•ƒ†‹•—”ƒ…‡‘ˆ–Š‡•‡ƒ••‡–•‘Ž›‹ˆ–Š‡•‡ƒ••‡–•
Šƒ˜‡„‡‡ƒ…–—ƒŽŽ›—•‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”–Š‡’”‘ϐ‹–•‘ˆ
™Š‹…Šƒ”‡•—„Œ‡…–‡†–‘–ƒšǤŠ—•ǡ‹ˆ–Š‡ƒ••‡–•ƒ”‡—•‡†‹•‘‡„—•‹‡••ǡ‹…‘‡‘ˆ™Š‹…Š‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǡ
–Š‡ƒ••‡••‡‡…ƒ‘–…Žƒ‹†‡†—…–‹‘‹”‡•’‡…–‘ˆ–Š‡•‡‡š’‡•‡•ƒ‰ƒ‹•––Š‡‹…‘‡ˆ”‘•‘‡‘–Š‡”„—•‹‡••ǡ–Š‡
’”‘ϐ‹–•‘ˆ™Š‹…Šƒ”‡–ƒšƒ„Ž‡Ǥ

‡’”‡…‹ƒ–‹‘ȏ‡…–‹‘͵ʹȐ

Š‹••‡…–‹‘ƒŽŽ‘™•ƒ†‡†—…–‹‘‹”‡•’‡…–‘ˆ†‡’”‡…‹ƒ–‹‘”‡•—Ž–‹‰ˆ”‘–Š‡†‹‹—–‹‘‘”‡šŠƒ—•–‹‘‹–Š‡
˜ƒŽ—‡‘ˆ…‡”–ƒ‹…ƒ’‹–ƒŽƒ••‡–•ǤŠ‡†‡†—…–‹‘‘ƒ……‘—–‘ˆ†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒ†‡…‘’—Ž•‘”‹Ž›ǡ™Š‡–Š‡”
‘”‘––Š‡ƒ••‡••‡‡Šƒ•…Žƒ‹‡†–Š‡†‡†—…–‹‘‹…‘’—–‹‰Š‹•–‘–ƒŽ‹…‘‡ǤŠ‡†‡†—…–‹‘–‘™ƒ”†•†‡’”‡…‹ƒ–‹‘
‹•˜‡”›‡••‡–‹ƒŽ–‘ƒ””‹˜‡ƒ––Š‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ƒ†ƒŽ•‘–‘ƒ‘”–‹•‡–Š‡…ƒ’‹–ƒŽ…‘•–‘ˆ–Š‡ƒ‘—–
‹˜‡•–‡†‹„—‹Ž†‹‰•ǡƒ…Š‹‡”›ǡ’Žƒ–ƒ†ˆ—”‹–—”‡Ǥ
Š‡’”‘˜‹•‹‘•ˆ‘”ƒŽŽ‘™‹‰†‡’”‡…‹ƒ–‹‘ƒ”‡…‘–ƒ‹‡†‹‡…–‹‘͵ʹƒ†ƒ”‡”‡‰—Žƒ–‡†—†‡”—Ž‡ͷ‘ˆ–Š‡…‘‡Ǧ
–ƒš—Ž‡•ǤŠ‡”ƒ–‡•‘ˆ†‡’”‡…‹ƒ–‹‘ƒ”‡ƒŽ•‘’”‘˜‹†‡†‹–Š‡…‘‡Ǧ–ƒš—Ž‡•Ǥ••‡–••Š‘—Ž†Šƒ˜‡„‡‡‘™‡†ƒ†
—•‡†„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡‘ˆŠ‹•„—•‹‡••Ȁ’”‘ˆ‡••‹‘†—”‹‰–Š‡”‡˜‹‘—•‡ƒ”‹””‡•’‡…–‹˜‡–Š‡›ƒ”‡
™Š‘ŽŽ›‘™‡†„›–Š‡ƒ••‡••‡‡‘”‘–Ǥ

‘†‹–‹‘•ˆ‘”ŽŽ‘™ƒ„‹Ž‹–›‘ˆ‡’”‡…‹ƒ–‹‘ȏ—Ž‡ͷȐ
ȋƒȌ Žƒ••‹ϐ‹…ƒ–‹‘‘ˆ••‡–•ǣ
 Š‡ƒ••‡–•‹”‡•’‡…–‘ˆ™Š‹…Š†‡’”‡…‹ƒ–‹‘‹•…Žƒ‹‡†—•–„‡„—‹Ž†‹‰•ǡƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡Ǥ
ƒ††‹–‹‘ –‘ –Š‡•‡ –ƒ‰‹„Ž‡ ƒ••‡–• ‹–ƒ‰‹„Ž‡ ƒ••‡–• Ž‹‡ ‘™ Š‘™ǡ ’ƒ–‡– ”‹‰Š–•ǡ …‘’› ”‹‰Š–•ǡ –”ƒ†‡ ƒ”•ǡ
Ž‹…‡…‡•ǡˆ”ƒ…Š‹•‡•‘”ƒ›‘–Š‡”„—•‹‡••‘”…‘‡”…‹ƒŽ”‹‰Š–‘ˆ•‹‹Žƒ”ƒ–—”‡ƒ…“—‹”‡†‘‘”ƒˆ–‡”ͳǤͶǤͳͻͻͺ
ƒ”‡‡Ž‹‰‹„Ž‡ˆ‘”†‡’”‡…‹ƒ–‹‘Ǥ‘†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‘–Š‡…‘•–‘ˆ–Š‡Žƒ†‘™Š‹…Š–Š‡„—‹Ž†‹‰‹•
‡”‡…–‡†„‡…ƒ—•‡–Š‡–‡”Ǯ„—‹Ž†‹‰ǯ”‡ˆ‡”•‘Ž›–‘•—’‡”•–”—…–—”‡„—–‘––Š‡Žƒ†‘™Š‹…Š‹–Šƒ•„‡‡‡”‡…–‡†Ǥ
Š‡–‡”Ǯ’Žƒ–ǯ‹…Ž—†‡••Š‹’•ǡ„‘‘•ǡ˜‡Š‹…Ž‡•ǡ•…‹‡–‹ϐ‹…ƒ’’ƒ”ƒ–—•ƒ†•—”‰‹…ƒŽ‡“—‹’‡–•—•‡†ˆ‘”–Š‡
’—”’‘•‡•‘ˆ–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘„—–†‘‡•‘–‹…Ž—†‡–‡ƒ„—•Š‡•‘”Ž‹˜‡•–‘…‘”„—‹Ž†‹‰•‘”ˆ—”‹–—”‡
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͳͻ͵

ƒ† ϐ‹––‹‰•Ǥ ‹‹Žƒ”Ž›ǡ –Š‡ –‡” Ǯ„—‹Ž†‹‰•ǯ ‹…Ž—†‡• ™‹–Š‹ ‹–• •…‘’‡ ”‘ƒ†•ǡ „”‹†‰‡•ǡ …—Ž˜‡”–•ǡ ™‡ŽŽ• ƒ†
–—„‡™‡ŽŽ•Ǥ
ȋ„Ȍ ••‡–•—•–„‡‘™‡†‡‹–Š‡”™Š‘ŽŽ›‘”’ƒ”–‹ƒŽŽ›ǣ
 ‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡‘Ž›‹”‡•’‡…–‘ˆ–Š‘•‡…ƒ’‹–ƒŽƒ••‡–•™Š‹…Šƒ”‡‘™‡†„›Š‹Ǥ
…ƒ•‡‘ˆƒ„—‹Ž†‹‰ǡ–Š‡ƒ••‡••‡‡—•–„‡‘™‡”‘ˆ–Š‡•—’‡”Ǧ•–”—…–—”‡ƒ†‘–‡…‡••ƒ”‹Ž›‘ˆ–Š‡Žƒ†‘™Š‹…Š
‹–‹•…‘•–”—…–‡†Ǥˆ–Š‡ƒ••‡••‡‡‹•‘Ž›ƒ–‡ƒ–‘ˆ–Š‡„—‹Ž†‹‰„—–‘–‹–•‘™‡”Š‡‹•‘–‡–‹–Ž‡†ˆ‘”ƒŽŽ‘™ƒ…‡
‹”‡•’‡…–‘ˆ†‡’”‡…‹ƒ–‹‘–Š‡”‡‘ˆǤŠ‡”‡–Š‡Žƒ†‘™Š‹…Š–Š‡„—‹Ž†‹‰‹•…‘•–”—…–‡†Šƒ•„‡‡–ƒ‡‘
Ž‡ƒ•‡„›–Š‡ƒ••‡••‡‡ǡ–Š‡ƒŽŽ‘™ƒ…‡‘ˆ†‡’”‡…‹ƒ–‹‘™‘—Ž†„‡ƒ†‹••‹„Ž‡‘Ž›‹ˆǡƒ……‘”†‹‰–‘–Š‡Ž‡ƒ•‡†‡‡†ǡ
–Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†–‘„‡–Š‡‘™‡”‘ˆ–Š‡•—’‡”Ǧ•–”—…–—”‡ǤŠ‡ˆƒ…––Šƒ–ƒ•’ƒ”–‘ˆ–Š‡–‡”•‘ˆ–Š‡Ž‡ƒ•‡
†‡‡†ǡ–Š‡„—‹Ž†‹‰ǡƒˆ–‡”‡š’‹”›‘ˆ–Š‡Ž‡ƒ•‡‹•–‘„‡–”ƒ•ˆ‡””‡†–‘–Š‡Ž‡••‘”‘ˆ–Š‡Žƒ†™‘—Ž†‘–ƒˆˆ‡…––Š‡
ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘Ǥ
 –Š‡…ƒ•‡‘ˆƒ••‡–•ƒ…“—‹”‡†‘Š‹”‡Ǧ’—”…Šƒ•‡ǡ‡Ǥ‰Ǥǡ’Žƒ–ƒ†ƒ…Š‹‡”›–ƒ‡‘Š‹”‡ǡ–Š‡ƒ••‡••‡‡™‘—Ž†
‘–„‡–Š‡‘™‡”–Š‡”‡‘ˆƒ†…‘•‡“—‡–Ž›™‘—Ž†‘–„‡‡–‹–Ž‡†ˆ‘”†‡’”‡…‹ƒ–‹‘‹”‡•’‡…–‘ˆ–Š‡•ƒ‡Ǥ—–
‹ˆ–Š‡’Žƒ–ƒ†ƒ…Š‹‡”›Šƒ†„‡‡ƒ…“—‹”‡†‘‹•–ƒŽ‡–„ƒ•‹•ǡ–Š‡ƒ••‡••‡‡„‡…‘‡•–Š‡‘™‡”‘ˆ–Š‡
ƒ••‡–•–Š‡‘‡––Š‡’—”…Šƒ•‡‘”•ƒŽ‡‹•…‘…Ž—†‡†ƒ†…‘•‡“—‡–Ž›‹•‡–‹–Ž‡†–‘†‡’”‡…‹ƒ–‹‘ƒŽ–Š‘—‰Šƒ
’ƒ”–‘”™Š‘Ž‡‘ˆ–Š‡’”‹…‡‹•’ƒ›ƒ„Ž‡‹ˆ—–—”‡Ǥ
ȋ…Ȍ •‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ—•‹‡••‘””‘ˆ‡••‹‘ǣ
 Š‡ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘‹••—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡ƒ••‡–•‘™Š‹…Š†‡’”‡…‹ƒ–‹‘‹•…Žƒ‹‡†ƒ”‡
ƒ…–—ƒŽŽ›’—––‘—•‡„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡•‘ˆŠ‹•„—•‹‡••‘”’”‘ˆ‡••‹‘†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”Ǥ
Š‡ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘ǡŠ‘™‡˜‡”ǡ‹•‘–•—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡ƒ••‡–‹“—‡•–‹‘—•–„‡
—•‡†–Š”‘—‰Š‘—––Š‡”‡Ž‡˜ƒ–ƒ……‘—–‹‰›‡ƒ”‹‘”†‡”–‘‡ƒ„Ž‡–Š‡ƒ••‡••‡‡–‘…Žƒ‹†‡’”‡…‹ƒ–‹‘Ǥ•‡…‘—Ž†
ƒŽ•‘ ‹…Ž—†‡ ’ƒ••‹˜‡ —•‡ –Šƒ– ‡ƒ• ‡’– ”‡ƒ†› ˆ‘” —•‡ǡ ‡šƒ’Ž‡ Ȃ ϐ‹”‡ ‡š–‹‰—‹•Š‡”•Ǥ  …ƒ•‡• ™Š‡”‡ –Š‡
†‡’”‡…‹ƒ„Ž‡ƒ••‡–‹•—•‡†’ƒ”–Ž›ˆ‘”„—•‹‡••’—”’‘•‡•ƒ†’ƒ”–Ž›ˆ‘”‘–Š‡”’—”’‘•‡•ǡ–Š‡†‡†—…–‹‘–‘™ƒ”†•
†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡—†‡”‡…–‹‘͵ʹ™‘—Ž†„‡‘ˆƒ•—’”‘’‘”–‹‘ƒ–‡–‘–Š‡†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡–‘
™Š‹…Š–Š‡ƒ••‡••‡‡™‘—Ž†Šƒ˜‡‘–Š‡”™‹•‡„‡‡‡–‹–Ž‡†Ǥ–ǯ•‘–Œ—•–—•‡–Šƒ–ǯ•‹’‘”–ƒ–ǡ‹–ǯ•‘™‡†ƒ†—•‡†
–Šƒ–ǯ•ƒ†ƒ–‘”›ǡ‹Ǥ‡Ǥǡ–Š‡ƒ••‡–••Š‘—Ž†„‡‘™‡†ƒ†—•‡†„›–Š‡ƒ••‡••‡‡‹–Š‡”‡˜‹‘—•‡ƒ”Ǥˆ–Š‡ƒ••‡–‹•
—•‡†ˆ‘”δͳͺͲ†ƒ›•ǡͷͲΨ‘ˆ†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡ˆ‘”–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
ȋ†Ȍ ‘†‡†—…–‹‘‘•‘Ž†••‡–•ǣ‘†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡†‡’”‡…‹ƒ„Ž‡ƒ••‡–‹ˆ–Š‡ƒ••‡–
…‘…‡”‡†‹••‘Ž†ǡ†‡•–”‘›‡†ǡ†‹•…ƒ”†‡†‘”†‡‘Ž‹•Š‡†‹–Š‡•ƒ‡›‡ƒ”‹™Š‹…Š‹–™ƒ•ƒ…“—‹”‡†Ǥ
ȋ‡Ȍ ‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™‡†‘–Š‡”‹––‡‘™ƒŽ—‡ȋȌ‡–Š‘†ǣ‡’”‡…‹ƒ–‹‘‹•…‘’—–‡†‘–Š‡
™”‹––‡†‘™˜ƒŽ—‡‘ˆ–Š‡Ž‘…‘ˆ–Š‡ƒ••‡–ƒ•‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ‘™‡˜‡”‹…ƒ•‡‘ˆ–Š‡
ƒ••‡•• ‡‰ƒ‰‡† ‹ –Š‡ ‰‡‡”ƒ–‹‘ ‘” †‹•–”‹„—–‹‘ ‘ˆ ’‘™‡”ǡ †‡’”‡…‹ƒ–‹‘ ƒ› „‡ …Žƒ‹‡† ‘ –Š‡ „ƒ•‹• ‘ˆ
–”ƒ‹‰Š–‹‡‡–Š‘†Ǥ
ȋˆȌ Š‡”‡ƒƒ••‡••‡‡‹…—”•ƒ›‡š’‡†‹–—”‡ˆ‘”ƒ…“—‹•‹–‹‘‘ˆ†‡’”‡…‹ƒ„Ž‡ƒ••‡–‹”‡•’‡…–‘ˆ™Š‹…Šƒ’ƒ›‡–
ȋ‘”ƒ‰‰”‡‰ƒ–‡‘ˆ’ƒ›‡–•ƒ†‡–‘ƒ’‡”•‘‹ƒ†ƒ›Ȍǡ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡…Š‡“—‡Ȁ†”ƒˆ–‘”
—•‡‘ˆ–Š”‘—‰Šƒ„ƒƒ……‘—–‘”•—…Š‘–Š‡”‡Ž‡…–”‘‹…‘†‡ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ‡š…‡‡†••ǤͳͲǡͲͲͲ
•—…Š’ƒ›‡–•ŠƒŽŽ‘–„‡‡Ž‹‰‹„Ž‡ˆ‘”‘”ƒŽȀƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘ǤŽ•‘•—…Šƒ›‡–™‹ŽŽ„‡‹‰‘”‡†ˆ‘”
–Š‡’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘‘ˆ…–—ƒŽ‘•–‘ˆ•—…Šƒ••‡–—†‡”•‡…–‹‘Ͷ͵ȋͳȌǤ
ȋ‰Ȍ ‡’”‡…‹ƒ–‹‘ ‹• ƒŽŽ‘™ƒ„Ž‡ ‹ –Š‡ Šƒ†• ‘ˆ –Š‡ ’”‡†‡…‡••‘” ƒ† •—……‡••‘”ǡ ‹ …ƒ•‡ ‘ˆ •—……‡••‹‘ ‘ˆ ƒ ϐ‹”ǡ
’”‘’”‹‡–ƒ”›…‘…‡”ǡ„›ƒ…‘’ƒ›ǡ‘”’”‡†‡…‡••‘”…‘’ƒ›ƒ†•—……‡••‘”ǡ‹…ƒ•‡‘ˆ…‘˜‡”•‹‘‘ˆ˜–Ǥ
–†Ǥ‘Ǥ–‘Ǥǡ‹…ƒ•‡‘ˆƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”ǡƒ†–Šƒ–•ŠƒŽŽ‘–‡š…‡‡†–Š‡†‡’”‡…‹ƒ–‹‘–Šƒ–™‘—Ž†
Šƒ˜‡„‡‡ƒŽŽ‘™‡†‹ˆ–Š‡•—……‡••‹‘ǡ†‡‡”‰‡”ǡƒƒŽ‰ƒƒ–‹‘Šƒ†‘––ƒ‡’Žƒ…‡ƒ†•—…Š†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ
„‡ƒ’’‘”–‹‘‡†„‡–™‡‡–Š‡’”‘’‘”–‹‘ƒ–‡–‘—•‡Ǥ
ȋŠȌ ƒ–‡•‘ˆ‡’”‡…‹ƒ–‹‘
Ȉ —‹Ž†‹‰•ȋ”‡•‹†‡–‹ƒŽ—•‡Ȍ‡š…‡’–Š‘–‡Ž•ƒ†„‘ƒ”†‹‰Š‘—•‡•ǣͷΨ
Ȉ —‹Ž†‹‰•ȋ‘Ǧ”‡•‹†‡–‹ƒŽ—•‡ȌǣͳͲΨ
Ȉ —”‡Ž›–‡’‘”ƒ”›‡””‡…–‹‘••—…Šƒ•™‘‘†‡•–”—…–—”‡•ǣͶͲΨ
Ȉ —”‹–—”‡ƒ† ‹––‹‰•‹…Ž—†‹‰‡Ž‡…–”‹…ƒŽϐ‹––‹‰••—…Šƒ•‡Ž‡…–”‹…™‹”‹‰ǡ•™‹–…Š‡•ǡ•‘…‡–‡–…ǤǣͳͲΨ
 ͳͻͶ Lesson 4 Ȉ EP-TL

Ȉ ‘’—–‡”•ȋ…Ž—†‹‰‘’—–‡”‘ˆ–™ƒ”‡ȌǣͶͲΨ
Ȉ Žƒ–Ƭƒ…Š‹‡”›ǣͳͷΨ
Ȉ Motor cars other than those used in a business of running them on hire, acquired during the period from
23.8.2019 to 31.03.2021 and put to use on or before 31.03.2021: ͵ͲΨ
Ȉ ‘–‘”…ƒ”•‘–Š‡”–Šƒ–Š‘•‡—•‡†‹ƒ„—•‹‡••‘ˆ”—‹‰–Š‡‘Š‹”‡ǡƒ…“—‹”‡†‘”’—––‘—•‡‘‘”ƒˆ–‡”
ͳǦͶǦͳͻͻͲǣͳͷΨ
Ȉ Motors buses, motor lorries, motor taxis used in a business of running them on hire, acquired during the
period from 23.8.2019 to 31.03.2021 and put to use on or before 31.03.2021: 45%
Ȉ ‘–‘”•„—•‡•ǡ‘–‘”Ž‘””‹‡•ǡ‘–‘”–ƒš‹•—•‡†‹–Š‡„—•‹‡••‘ˆ”—‹‰–Š‡‘Š‹”‡ǣ͵ͲΨ
Ȉ …‡ƒ‰‘‹‰Š‹’•ǡ•’‡‡†„‘ƒ–•ǣʹͲΨ
Ȉ ‹”…”ƒˆ–•ǣͶͲΨ
Ȉ –ƒ‰‹„Ž‡••‡–•ǡ‹Ǥ‡Ǥǡ‘™ǦŠ‘™ǡ’ƒ–‡–•ǡ…‘’›”‹‰Š–•ǡ–”ƒ†‡ƒ”•ǡŽ‹…‡…‡•ǡˆ”ƒ…Š‹•‡•‘”ƒ›‘–Š‡”„—•‹‡••
‘” …‘‡”…‹ƒŽ ”‹‰Š–• ‘ˆ •‹‹Žƒ” ƒ–—”‡ǣ ʹͷΨǡ „—– ‘– „‡‹‰ ‰‘‘†™‹ŽŽ ‘ˆ ƒ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ȋ‘
†‡’”‡…‹ƒ–‹‘™‹ŽŽ„‡ƒŽŽ‘™‡†‘‰‘‘†™‹ŽŽȌ
Note: As per the landmark judgment of CIT V/s Annamalai Finance Ltd., Madras High Court held that; It is the end use
‘ˆ–Š‡•’‡…‹ϔ‹‡†ƒ••‡–™Š‹…Š‹•”‡Ž‡˜ƒ–ˆ‘”†‡–‡”‹‹‰–Š‡’‡”…‡–ƒ‰‡‘ˆ†‡’”‡…‹ƒ–‹‘Ǥ ‘”‡šƒ’Ž‡‹…ƒ•‡‘ˆ„—•‹‡••
of leasing out vehicle, if lessee is using the vehicle for running them on hire, depreciation shall be allowable at Higher
rate of 30% instead of 15% to the le••‘”Ǥ

Ž‘…‘ˆ••‡–•

Š‡†‡’”‡…‹ƒ–‹‘‹•’”‘˜‹†‡†‹”‡•’‡…–‘ˆDzŽ‘…‘ˆƒ••‡–•dzǤ•’‡”‡…–‹‘ʹȋͳͳȌŽ‘…‘ˆƒ••‡–•‡ƒ•Dzƒ‰”‘—’
‘ˆƒ••‡–•ˆƒŽŽ‹‰™‹–Š‹ƒ…Žƒ••‘ˆƒ••‡–•ǡ„‡‹‰–ƒ‰‹„Ž‡ƒ••‡–••—…Šƒ•„—‹Ž†‹‰•ǡƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡
ƒ† ‹–ƒ‰‹„Ž‡ ƒ••‡–•ǡ „‡‹‰ ‘™ǦŠ‘™ǡ ’ƒ–‡–•ǡ …‘’›”‹‰Š–•ǡ –”ƒ†‡ƒ”•ǡ Ž‹…‡…‡•ǡ ”ƒ…Š‹•‡• ‘” ƒ› ‘–Š‡”
„—•‹‡•• ‘” …‘‡”…‹ƒŽ ”‹‰Š–• ‘ˆ •‹‹Žƒ” ƒ–—”‡ǡ ‹ ”‡•’‡…– ‘ˆ ™Š‹…Š –Š‡ •ƒ‡ ’‡”…‡–ƒ‰‡ ‘ˆ †‡’”‡…‹ƒ–‹‘ ‹•
’”‡•…”‹„‡†dzǤ
Š‡”‡ƒ”‡ˆ‘—”…Žƒ••‡•‘ˆ–Š‡ƒ••‡–•™Š‹…Šƒ”‡ˆ—”–Š‡”…ƒ–‡‰‘”‹œ‡†‹–‘–‡Ž‘…•‘ˆ••‡–•ƒ……‘”†‹‰–‘†‹ˆˆ‡”‡–
”ƒ–‡•‘ˆƒ••‡–•’”‡•…”‹„‡†ƒ•—†‡”ǣ

S. No. Žƒ••‘ˆ••‡– Ž‘…‘ˆ••‡–

ͳǤ —‹Ž†‹‰ ͵„Ž‘…•ȋͷΨǡͳͲΨƒ†ͶͲΨȌ
ʹǤ —”‹–—”‡Ƭ ‹š–—”‡ ͳ„Ž‘…ȋͳͲΨȌ
͵Ǥ Žƒ–ƒ†ƒ…Š‹‡”› ͷ„Ž‘…•ȋͳͷΨǡʹͲΨǡ͵ͲΨǡͶͲΨǡͶͷΨȌ
ͶǤ –ƒ‰‹„Ž‡••‡–• ͳ„Ž‘…ȋʹͷΨȌ

ŽŽ—•–”ƒ–‹‘ͳǣ

 –†Ǥ Šƒ• ƒ „Ž‘… ‘ˆ ƒ••‡–• ȋƬȌǡ …ƒ””›‹‰ ͳͷΨ †‡’”‡…‹ƒ–‹‘ǡ  ‘ ͳ•– ’” ʹͲʹͳ ‹•  ͹ͷǡͲͲǡͲͲͲǤ –
’—”…Šƒ•‡†•—„•‡“—‡–Ž›‘ͳ•–‡…ǤʹͲʹͳǡƒ‘–Š‡”ƒ…Š‹‡”›ˆ‘”ʹͷǡͲͲǡͲͲͲƒ†’—––‘—•‡‘–Š‡•ƒ‡†ƒ›Ǥ
–†Ǥ™ƒ•ƒƒŽ‰ƒƒ–‡†™‹–Š–†Ǥ‡ˆˆ‡…–‹˜‡ͳ•– ‡„ǤʹͲʹʹǤ
‘Ž—–‹‘ǣ
‘’—–‡–Š‡†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡ˆ‘”–†Ǥƒ†–†Ǥˆ‘”–Š‡ʹͲʹʹǦʹ͵Ǥ

Ž‘… ƒ›• ŽŽ‘™ƒ„Ž‡ ‡’”‡…‹ƒ–‹‘

͹ͷǡͲͲǡͲͲͲ ͵͸ͷ —ŽŽ ͳͳǡʹͷǡͲͲͲ
ʹͷǡͲͲǡͲͲͲ ͳʹͳ ƒŽˆ ͳǡͺ͹ǡͷͲͲ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͳͻͷ

‘–ƒŽ‡’”‡…‹ƒ–‹‘ ͳ͵ǡͳʹǡͷͲͲ
”‡†‡…‡••‘” ͵Ͳ͸ –Š‡’‡‹‰Ƭ ͻǡͶ͵ǡͳͷͳ
—……‡••‘” ͷͻ ͳǡͺͳǡͺͶͻ
”‡†‡…‡••‘” ͸ʹ –Š‡…“—‹”‡†Ƭ ͻ͸ǡͲ͹Ͷ
—……‡••‘” ͷͻ ͻͳǡͶʹ͸
‘–‡•ǣ
ȋͳȌ Š‡†‡’”‡…‹ƒ–‹‘ˆ‘”–Š‡ƒ••‡–‹‡š‹•–‡…‡ƒ†—•‡†ˆ‘”–Š‡™Š‘Ž‡›‡ƒ”‹•’”‘’‘”–‹‘ƒ–‡Ž›†‹˜‹†‡†‘–Š‡
„ƒ•‹• ‘ˆ –Š‡ —„‡” ‘ˆ †ƒ›• —•‡† „› –Š‡ ’”‡†‡…‡••‘” —–‹Ž ƒƒŽ‰ƒƒ–‹‘ †ƒ–‡ ƒ† –Š‡ •—……‡••‘” ’‘•–
ƒƒŽ‰ƒƒ–‹‘†ƒ–‡Ǥ
ȋʹȌ Š‡†‡’”‡…‹ƒ–‹‘ˆ‘”–Š‡ƒ••‡–ƒ…“—‹”‡††—”‹‰–Š‡›‡ƒ”ƒ†—•‡†ˆ‘”–Š‡”‡ƒ‹‹‰’ƒ”–‘ˆ–Š‡›‡ƒ”‹•
’”‘’‘”–‹‘ƒ–‡Ž›†‹˜‹†‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡—„‡”‘ˆ†ƒ›•—•‡†„›–Š‡’”‡†‡…‡••‘”—–‹ŽƒƒŽ‰ƒƒ–‹‘
†ƒ–‡ƒ†–Š‡•—……‡••‘”’‘•–ƒƒŽ‰ƒƒ–‹‘†ƒ–‡ǡ„‡‰‹‹‰–Š‡†ƒ–‡‘ˆƒ…“—‹•‹–‹‘Ǥ

Note: As per the CBDT circular, irrespective of the accounting treatment, the Lessor shall be entitled to claim
†‡’”‡…‹ƒ–‹‘‘Ž‡ƒ•‡†ƒ••‡–•ǡ™Š‡–Š‡”–Š‡Ž‡ƒ•‡‹•ƒ‘’‡”ƒ–‹‰Ž‡ƒ•‡‘”ƒϔ‹ƒ…‹ƒŽŽ‡ƒ•‡Ǥ

…–—ƒŽ‘•–ȏ‡…–‹‘Ͷ͵ȋͳȌȐ
Š‡ƒ…–—ƒŽ…‘•–‘ˆƒƒ••‡––‘–Š‡ƒ••‡••‡‡‹•‘”ƒŽŽ›–Š‡ƒ‘—–‘ˆ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹…—””‡†‹”‡•’‡…–‘ˆ–Š‡
ƒ…“—‹•‹–‹‘ǡ‹•–ƒŽŽƒ–‹‘ǡ‡–…Ǥǡ‘ˆ–Š‡ƒ••‡–ƒ†ƒŽ•‘–Š‡‘–Š‡”‡š’‡•‡•ǡ‹ˆƒ›ǡ‹…—””‡†„›Š‹–‘ƒ‡–Š‡ƒ••‡–”‡ƒ†›
ˆ‘”–Š‡’—”’‘•‡‘ˆ‹–•—•‡‹–Š‡„—•‹‡••Ǥ
Š‡‡š’”‡••‹‘Ǯƒ…–—ƒŽ…‘•–ǯŠƒ•„‡‡†‡ϐ‹‡†‹‡…–‹‘Ͷ͵ȋͳȌ‘ˆ–Š‡…––‘‡ƒ–Šƒ–ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡––‘–Š‡
ƒ••‡••‡‡ƒ•”‡†—…‡†„›–Šƒ–’‘”–‹‘‘ˆ–Š‡…‘•––Š‡”‡‘ˆǡ‹ˆƒ›ǡƒ•Šƒ•„‡‡‡–†‹”‡…–Ž›‘”‹†‹”‡…–Ž›„›ƒ›‘–Š‡”
’‡”•‘‘”ƒ—–Š‘”‹–›Ǥ ‘”‹•–ƒ…‡ǡ‹ˆƒƒ••‡••‡‡‰‡–•ƒ•—„•‹†›ˆ”‘–Š‡
‘˜‡”‡–ˆ‘”–Š‡’—”…Šƒ•‡‘ˆƒ’ƒ”–‹…—Žƒ”
‹–‡‘ˆƒ…Š‹‡”›ǡ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ…Š‹‡”›–‘–Š‡ƒ••‡••‡‡™‘—Ž†„‡–‘–ƒŽ‘ˆ–Š‡’—”…Šƒ•‡’”‹…‡ƒ†–Š‡
‡š’‡•‡•‹”‡‰ƒ”†–‘‹•–ƒŽŽƒ–‹‘‡–…Ǥ‹—•–Š‡•—„•‹†›”‡…‡‹˜‡†ˆ”‘–Š‡
‘˜‡”‡–Ǥ
–‹•‹’‘”–ƒ––‘‘–‡–Šƒ–™Š‡”‡ǡƒƒ••‡••‡‡ǡ‹ƒ…“—‹•‹–‹‘‘ˆƒƒ••‡–ǡƒ‡•’ƒ›‡–ȋ•Ȍ‹ƒ†ƒ›‘–Š‡”™‹•‡–Šƒ
„›ƒƒȀ…’ƒ›‡‡…Š‡“—‡Ȁ†‡ƒ††”ƒˆ–ȀȀ‘”•—…Š‘–Š‡”‡Ž‡…–”‘‹…‘†‡•ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ™Š‹…Š‹•ε
ͳͲͲͲͲǡ•—…Š‡š’‡†‹–—”‡™‘—Ž†‘–„‡ƒ’ƒ”–‘ˆ–Š‡ƒ…–—ƒŽ…‘•–Ǥ
The prescribed electronic modes include credit card, debit card, net banking, IMPS (Immediate payment
‡”˜‹…‡Ȍǡ  ȋ‹ϔ‹‡† ƒ›‡– –‡”ˆƒ…‡Ȍǡ 
 ȋ‡ƒŽ ‹‡
”‘•• ‡––Ž‡‡–Ȍǡ   ȋƒ–‹‘ƒŽ Ž‡…–”‘‹…
—†•”ƒ•ˆ‡”Ȍǡƒ†ȋŠƒ”ƒ––‡”ˆƒ…‡ˆ‘”‘‡›Ȍƒ†Šƒ”ƒ›ȏ‘–‹ϔ‹…ƒ–‹‘‘Ǥ;Ȁ͸Ͷ͸ͷ†ƒ–‡†
29.01.2021].
Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘Ͷ͵ȋͳȌ‘ˆ–Š‡…–…Žƒ”‹ˆ›–Šƒ––Š‡ƒ…–—ƒŽ…‘•–‘ˆ†‡’”‡…‹ƒ„Ž‡ƒ••‡–•Š‘—Ž†„‡†‡–‡”‹‡†‹
–Š‡ˆ‘ŽŽ‘™‹‰…‹”…—•–ƒ…‡•ƒ•‹†‹…ƒ–‡†„‡Ž‘™ǣ
Ȉ ••‡–—•‡†ˆ‘”•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š‹‹–‹ƒŽŽ›ƒ†–Š‡—•‡†ˆ‘”—•‹‡••ǣˆƒƒ••‡–™ƒ•ϐ‹”•–—•‡†ˆ‘”•…‹‡–‹ϐ‹…
”‡•‡ƒ”…Šƒ†–Š‡—•‡†ˆ‘”„—•‹‡••Žƒ–‡”ǡ–Š‡ƒ…–—ƒŽ…‘•–™‘—Ž†„‡–Š‡‹‹–‹ƒŽ…‘•–‹…—””‡†‹ƒ…“—‹”‹‰–Š‡
ƒ••‡–‹—•–Š‡†‡†—…–‹‘ƒŽ”‡ƒ†›…Žƒ‹‡†—†‡”•‡…–‹‘͵Ǥ
Ȉ ••‡–ƒ…“—‹”‡†ƒ•ƒ‰‹ˆ–Ȁ‹Š‡”‹–ƒ…‡ǣˆ–Š‡ƒ••‡–‹•ƒ…“—‹”‡†ƒ•ƒ‰‹ˆ–Ȁ‹Š‡”‹–ƒ…‡ǡ–Š‡ƒ…–—ƒŽ…‘•–‹•–Š‡
‘ˆ–Š‡’”‡˜‹‘—•‘™‡”Ǥ
Ȉ ‡Ǧƒ…“—‹•‹–‹‘‘ˆ••‡–ǣˆƒƒ••‡–™ƒ•‘…‡‹—•‡ǡ–Š‡–”ƒ•ˆ‡””‡†ƒ†Žƒ–‡””‡Ǧƒ…“—‹”‡†ǡ–Š‡ƒ…–—ƒŽ…‘•–
™‘—Ž†„‡–Š‡ƒ––Š‡–‹‡‘ˆ–”ƒ•ˆ‡”–Š‡’”‹…‡‘ˆ”‡Ǧƒ…“—‹•‹–‹‘ǡ™Š‹…Š‡˜‡”‹•Ž‘™‡”Ǥ
 ‘”•–ƒ…‡ǡ‹ˆǮǯ–”ƒ•ˆ‡”•Š‹•ƒ…Š‹‡”›‘ͳǤͳǤʹͲʹʹ–‘Ǯǯˆ‘”ƒ•—‘ˆ•Ǥ͸ǤͲͲŽƒŠ•™Š‹Ž‡–Š‡ƒ…–—ƒŽ…‘•–
‘ˆ –Š‡ ƒ••‡– ƒ† –Š‡ ™”‹––‡ †‘™ ˜ƒŽ—‡ –Š‡”‡‘ˆ ‘ –Šƒ– †ƒ› –‘ Ǯǯ ƒ”‡ •Ǥ ͵ǤͲͲ ŽƒŠ• ƒ† •Ǥ ͳǤͲͲ ŽƒŠ
”‡•’‡…–‹˜‡Ž›ǡ‹–ƒ›„‡‹ˆ‡””‡†–Šƒ––Š‡–”ƒ•ˆ‡”„›Ǯǯ–‘Ǯǯ‹•ƒ†‡™‹–Š‹†‡ƒ–‘‡ƒ„Ž‡Ǯǯ–‘…Žƒ‹†‡’”‡…‹ƒ–‹‘
‘•Ǥ͸ǤͲͲƒŠ•™Š‹Ž‡–Š‡ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–‘–Š‡†ƒ–‡‘ˆ•ƒŽ‡„›Ǯǯ–‘Ǯǯƒ›„‡•ǤͶǤͲͲŽƒŠ•‘Ž›Ǥ
•—…Šƒ…ƒ•‡ǡ–Š‡••‡••‹‰ˆϐ‹…‡”™‘—Ž†„‡‡–‹–Ž‡†–‘ƒŽŽ‘™†‡’”‡…‹ƒ–‹‘–‘Ǯǯ‘–Š‡„ƒ•‹•‘ˆ–Š‡…‘•–
™Š‹…Šƒ›„‡†‡–‡”‹‡†„›Š‹–‘„‡•ǤͶǤͲͲŽƒŠ•‹•–‡ƒ†‘ˆ•Ǥ͸ǤͲͲŽƒŠ•ƒ•…Žƒ‹‡†„›ǮǯǤ
 ͳͻ͸ Lesson 4 Ȉ EP-TL

Ȉ ••‡–‹•–”ƒ•ˆ‡””‡†ˆ”‘ƒŠ‘Ž†‹‰…‘Ǥ–‘ƒ•—„•‹†‹ƒ”›…‘Ǥ‘”˜‹…‡Ǧ˜‡”•ƒˆƒƒ••‡–‹•–”ƒ•ˆ‡””‡†ˆ”‘ƒŠ‘Ž†‹‰
…‘Ǥ–‘ƒ•—„•‹†‹ƒ”›…‘Ǥ‘”˜‹…‡Ǧ˜‡”•ƒǡ–Š‡•—„Œ‡…––‘•’‡…‹ϐ‹‡†…‘†‹–‹‘•ǡ–Š‡–”ƒ•ƒ…–‹‘™‘—Ž†ǯ–„‡ƒ–”ƒ•ˆ‡”
‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ƒ†Š‡…‡ǡ–Š‡ƒ…–—ƒŽ…‘•––‘–Š‡–”ƒ•ˆ‡”‡‡…‘’ƒ›•ŠƒŽŽ„‡–ƒ‡–‘„‡–Š‡•ƒ‡ƒ•‹–
™‘—Ž†Šƒ˜‡„‡‡—•‡†„›–Š‡–”ƒ•ˆ‡”‘”…‘’ƒ›Šƒ†‹–…‘–‹—‡†–‘Š‘Ž†‹–ˆ‘”–Š‡’—”’‘•‡•‘ˆ„—•‹‡••Ȁ
’”‘ˆ‡••‹‘ǡƒ†•‹‹Žƒ”ƒ’’”‘ƒ…Š–‘„‡ƒ†‘’–‡†ˆ‘”ƒƒŽ‰ƒƒ–‹‘Ȁ†‡‡”‰‡”Ǥ
Ȉ –‡”‡•–’ƒ‹†‘”’ƒ›ƒ„Ž‡‹…‘‡…–‹‘™‹–Šƒ…“—‹•‹–‹‘‘ˆƒ••‡–ǣ›ƒ‘—–‘ˆ‹–‡”‡•–’ƒ‹†Ȁ’ƒ›ƒ„Ž‡ƒ•
‹–‡”‡•–‹…‘‡…–‹‘™‹–Š–Š‡ƒ…“—‹•‹–‹‘‘ˆƒƒ••‡–ǡƒ†”‡Žƒ–ƒ„Ž‡–‘’‡”‹‘†ƒˆ–‡”–Š‡ƒ••‡–‹•’—––‘—•‡ǡ
•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–Ǥ
Ȉ —„•‹†› ‘” ‰”ƒ– ‘” ”‡‹„—”•‡‡– „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ‘” ƒ –ƒ–‡
‘˜‡”‡– ‘” ƒ› ƒ—–Š‘”‹–›
‡•–ƒ„Ž‹•Š‡†—†‡”ƒ›Žƒ™‘”„›ƒ›‘–Š‡”’‡”•‘ǣŠ‡”‡ƒ’‘”–‹‘‘ˆ–Š‡…‘•–‘ˆƒƒ••‡–ƒ…“—‹”‡†„›–Š‡
ƒ••‡••‡‡Šƒ•„‡‡‡–†‹”‡…–Ž›‘”‹†‹”‡…–Ž›„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–‘”ƒ›ƒ—–Š‘”‹–›
‡•–ƒ„Ž‹•Š‡†—†‡”ƒ›Žƒ™‘”„›ƒ›‘–Š‡”’‡”•‘ǡ‹–Š‡ˆ‘”‘ˆƒ•—„•‹†›‘”‰”ƒ–‘””‡‹„—”•‡‡–ȋ„›
™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†Ȍǡ–Š‡ǡ•‘—…Š‘ˆ–Š‡…‘•–ƒ•‹•”‡Žƒ–ƒ„Ž‡–‘•—…Š•—„•‹†›‘”‰”ƒ–‘””‡‹„—”•‡‡–
•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡––‘–Š‡ƒ••‡••‡‡Ǥ
Ȉ ••‡– ƒ…“—‹”‡† „› ƒ ‘Ǧ”‡•‹†‡– ‘—–•‹†‡ †‹ƒǣ Š‡”‡ ƒ ƒ••‡– ™Š‹…Š ™ƒ• ƒ…“—‹”‡† ‘—–•‹†‡ †‹ƒ „› ƒ
ƒ••‡••‡‡ǡ„‡‹‰ƒ‘Ǧ”‡•‹†‡–ǡ‹•„”‘—‰Š–„›Š‹–‘†‹ƒƒ†—•‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆŠ‹•„—•‹‡••‘”
’”‘ˆ‡••‹‘ǡ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡––‘–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡–Š‡ƒ…–—ƒŽ…‘•––‘–Š‡ƒ••‡••‡‡ǡƒ•”‡†—…‡†
„›ƒƒ‘—–‡“—ƒŽ–‘–Š‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‹ˆ‘”…‡–Šƒ–™‘—Ž†Šƒ˜‡„‡‡
ƒŽŽ‘™ƒ„Ž‡Šƒ†–Š‡ƒ••‡–„‡‡—•‡†‹†‹ƒˆ‘”–Š‡•ƒ‹†’—”’‘•‡••‹…‡–Š‡†ƒ–‡‘ˆ‹–•ƒ…“—‹•‹–‹‘„›–Š‡
ƒ••‡••‡‡Ǥ
Ȉ ƒ’‹–ƒŽ••‡–ƒ…“—‹”‡†—†‡”•…Š‡‡ˆ‘”‘”’‘”ƒ–‹•ƒ–‹‘ǣŠ‡”‡ƒ›…ƒ’‹–ƒŽƒ••‡–‹•ƒ…“—‹”‡†„›–Š‡ƒ••‡••‡‡
—†‡”ƒ•…Š‡‡ˆ‘”…‘”’‘”ƒ–‹•ƒ–‹‘‘ˆƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡‹†‹ƒǡƒ’’”‘˜‡†„›–Š‡‡…—”‹–‹‡•ƒ†
š…Šƒ‰‡‘ƒ”†‘ˆ†‹ƒ‡•–ƒ„Ž‹•Š‡†—†‡”•‡…–‹‘͵‘ˆ–Š‡‡…—”‹–‹‡•ƒ†š…Šƒ‰‡‘ƒ”†‘ˆ†‹ƒ…–ǡͳͻͻʹ
ȋͳͷ‘ˆͳͻͻʹȌǡ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ƒ‘—–™Š‹…Š™‘—Ž†Šƒ˜‡„‡‡”‡‰ƒ”†‡†
ƒ•ƒ…–—ƒŽ…‘•–Šƒ†–Š‡”‡„‡‡‘•—…Š…‘”’‘”ƒ–‹œƒ–‹‘Ǥ
Ȉ ƒ’‹–ƒŽ••‡–‘™Š‹…Š†‡†—…–‹‘Šƒ•„‡‡ƒŽŽ‘™‡†‘”ƒŽŽ‘™ƒ„Ž‡—Ȁ•͵ͷ•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•‹Žǣ
Ȉ …–—ƒŽ…‘•–‘ˆ‹˜‡–‘”›…‘˜‡”–‡†‹–‘…ƒ’‹–ƒŽƒ••‡–ǡ‹ˆ—•‡†ˆ‘”„—•‹‡••ǡ•ŠƒŽŽ„‡–Š‡ ƒ‹”ƒ”‡–ƒŽ—‡Ǥ
Note: Interest paid before the commencement of the production on amounts borrowed by the assessee for
acquisition and installation of the plant and machiner›•ŠƒŽŽˆ‘”’ƒ”–‘ˆ–Š‡ƒ…–—ƒŽ…‘•–—Ȁ•ͺ͹ȋͷȌǡƒ•†‡…‹†‡†
by the Supreme Court in Challapalli Sugars Limited Vs CIT.

”‹––‡‘™ƒŽ—‡ȋȌȏ‡…–‹‘Ͷ͵ȋ͸ȌȐ
Ȉ ••‡–ƒ…“—‹”‡††—”‹‰’”‡˜‹‘—•›‡ƒ”ǣ…ƒ•‡‘ˆƒ…“—‹•‹–‹‘‘ˆƒ••‡–•†—”‹‰–Š‡”‡˜‹‘—•‡ƒ”ǡ–Š‡ƒ…–—ƒŽ…‘•–
„‡…‘‡•–Š‡Ǥ
Ȉ ••‡–ƒ…“—‹”‡†„‡ˆ‘”‡’”‡˜‹‘—•›‡ƒ”ǣ…ƒ•‡‘ˆƒ••‡–•ƒ…“—‹”‡†„‡ˆ‘”‡–Š‡”‡˜‹‘—•‡ƒ”ǡ–Š‡α…–—ƒŽ
‘•––‘–Š‡••‡••‡‡‡••‡’”‡…‹ƒ–‹‘…Ȁˆ‹ˆƒ›Ǥ
Ȉ ••‡––”ƒ•ˆ‡”ˆ”‘Š‘Ž†‹‰…‘’ƒ›–‘•—„•‹†‹ƒ”›ǡ‘”˜‹…‡Ǧ˜‡”•ƒǣ…ƒ•‡‘ˆ–”ƒ•ˆ‡”‘ˆƒ••‡–•ˆ”‘Š‘Ž†‹‰
…‘’ƒ›–‘•—„•‹†‹ƒ”›ǡ‘”˜‹…‡Ǧ˜‡”•ƒǡ‘”ˆ”‘ƒƒƒŽ‰ƒƒ–‹‰…‘’ƒ›–‘ƒƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǡ–Š‡
–Š‡ƒ…–—ƒŽ…‘•–‘ˆƒ••‡–•‹–Š‡„‘‘•‘ˆ–Š‡–”ƒ•ˆ‡”‡‡…‘’ƒ›™‘—Ž†„‡–Š‡‘ˆ–Š‡„Ž‘…‘ˆƒ••‡–•ǡƒ•
‹ –Š‡ „‘‘• ‘ˆ –”ƒ•ˆ‡”‘” …‘’ƒ› ˆ‘” –Š‡ ‹‡†‹ƒ–‡Ž› ’”‡…‡†‹‰ ”‡˜‹‘—• ‡ƒ”ǡ ‹—•ǡ –Š‡ ƒŽŽ‘™ƒ„Ž‡
†‡’”‡…‹ƒ–‹‘†—”‹‰–Š‡—””‡–‡ƒ”Ǥ
Ȉ ‹…ƒ•‡•—……‡••‘”‹•ǣ…ƒ•‡‘ˆƒ•—……‡••‘”ǡ–Š‡‹–Š‡„‘‘•‘ˆ–Š‡™‘—Ž†„‡–Š‡
‹–Š‡„‘‘•‘ˆ–Š‡’”‡†‡…‡••‘”…‘’ƒ›‘–Š‡†ƒ–‡‘ˆ•—…Š…‘˜‡”•‹‘Ǥ
Ȉ Š‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ••‡–•ƒ›„‡”‡†—…‡†–‘ǣ
ȋƒȌ –Š‡‘‡›•”‡…‡‹˜ƒ„Ž‡„›–Š‡ƒ••‡••‡‡‹”‡•’‡…–‘ˆ–Š‡ƒ••‡–••‘Ž†ǡ–‘‰‡–Š‡”™‹–Š–Š‡•…”ƒ’˜ƒŽ—‡‹ˆƒ›
‹•ε–Šƒ–Š‡…—””‡–‘ˆ–Š‡ƒ••‡–•ƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡›‡ƒ”ƒ•‹…”‡ƒ•‡†„›–Š‡ƒ…–—ƒŽ…‘•–‘ˆ
ƒ›‡™ƒ••‡–ƒ…“—‹”‡†ǡ
ȋ„Ȍ ™Š‡”‡–Š‡‡–‹”‡„Ž‘…‘ˆƒ••‡–•‹••‘Ž††—”‹‰–Š‡›‡ƒ”Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͳͻ͹

ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘ 
Ȉ –ǯ•–Š‡†‡’”‡…‹ƒ–‹‘–Šƒ–…‘—Ž†ǯ–„‡…‘•—‡†ˆ—ŽŽ›ǡ–Šƒ–‹•ǡ–Š‡’”‘ϐ‹–•™‡”‡‘–•—ˆϐ‹…‹‡––‘ƒ„•‘”„‹–Ǥ
Ȉ ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†‹†‡ϐ‹‹–‡Ž›ǤŠ‡…—””‡–›‡ƒ”†‡’”‡…‹ƒ–‹‘ƒ†–Š‡„”‘—‰Š–ˆ‘”™ƒ”†„—•‹‡••Ž‘••‡•
‰‡–’”‹‘”‹–›‹–Š‡•‡–‘ˆˆ‘˜‡”–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ǡ‹–Šƒ–‘”†‡”Ǥ
‡’”‡…‹ƒ–‹‘‘–”ƒ‹‰Š–‹‡ƒ•‹•
–Š‡…ƒ•‡‘ˆ‘™‡”‹–•ȏ‡…–‹‘ʹȋͳȌȋ‹ȌȐȋ‘’–‹‘ƒŽ–‘’‘™‡”‰‡‡”ƒ–‹‰—‹–•Ȍˆ”‘–Š‡ƒ••‡••‡–›‡ƒ”ͳͻͻͺǦͻͻǡ
ƒ—†‡”–ƒ‹‰‡‰ƒ‰‡†‹‰‡‡”ƒ–‹‘‘”‰‡‡”ƒ–‹‘ƒ††‹•–”‹„—–‹‘‘ˆ’‘™‡”…ƒ…Žƒ‹†‡’”‡…‹ƒ–‹‘‘•–”ƒ‹‰Š–
Ž‹‡ „ƒ•‹• ‘ –Š‡ ƒ…–—ƒŽ …‘•– ‘ˆ ‹†‹˜‹†—ƒŽ ƒ••‡–Ǥ —– –Š‡ ƒ‰‰”‡‰ƒ–‡ †‡’”‡…‹ƒ–‹‘ …ƒ‘– ‡š…‡‡† –Š‡ ƒ…–—ƒŽ …‘•–Ǥ
Ž–‡”ƒ–‹˜‡Ž›ǡ•—…Š—†‡”–ƒ‹‰…ƒ…Žƒ‹†‡’”‡…‹ƒ–‹‘ǡƒ–‹–•‘’–‹‘ǡƒ……‘”†‹‰–‘™”‹––‡†‘™˜ƒŽ—‡‡–Š‘†Ž‹‡
ƒ›‘–Š‡”ƒ••‡••‡‡ǤŠ‡‘’–‹‘ˆ‘”–Š‹•’—”’‘•‡•ŠƒŽŽ„‡‡š‡”…‹•‡†„‡ˆ‘”‡–Š‡†—‡†ƒ–‡‘ˆˆ—”‹•Š‹‰”‡–—”‘ˆ‹…‘‡Ǥ
…‡–Š‹•‘’–‹‘‹•‡š‡”…‹•‡†ǡ‹–•ŠƒŽŽ„‡ϐ‹ƒŽƒ†•ŠƒŽŽƒ’’Ž›–‘ƒŽŽ–Š‡•—„•‡“—‡–›‡ƒ”•Ǥ
Š‡”‡ƒƒ••‡••‡‡‹…—”•ƒ›‡š’‡†‹–—”‡ˆ‘”ƒ…“—‹•‹–‹‘‘ˆƒ›ƒ••‡–‹”‡•’‡…–‘ˆ™Š‹…Šƒ’ƒ›‡–ȋ‘”ƒ‰‰”‡‰ƒ–‡
‘ˆ’ƒ›‡–•ƒ†‡–‘ƒ’‡”•‘‹ƒ†ƒ›Ȍǡ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡…Š‡“—‡Ȁ†”ƒˆ–‘”—•‡‘ˆ–Š”‘—‰Šƒ
„ƒ ƒ……‘—– ‘” •—…Š ‘–Š‡” ‡Ž‡…–”‘‹… ‘†‡ ƒ• ƒ› „‡ ’”‡•…”‹„‡†ǡ ‡š…‡‡†• •Ǥ ͳͲǡͲͲͲǡ •—…Š ƒ›‡– •ŠƒŽŽ „‡
‹‰‘”‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘‘ˆ…–—ƒŽ‘•–‘ˆ•—…Šƒ••‡–Ǥ
The prescribed electronic modes include credit card, debit card, net banking, IMPS (Immediate payment Service), UPI
ȋ‹ϔ‹‡† ƒ›‡– –‡”ˆƒ…‡Ȍǡ 
 ȋ‡ƒŽ ‹‡
”‘•• ‡––Ž‡‡–Ȍǡ   ȋƒ–‹‘ƒŽ Ž‡…–”‘‹… —†• ”ƒ•ˆ‡”Ȍǡ ƒ†
ȋŠƒ”ƒ––‡”ˆƒ…‡ˆ‘”‘‡›Ȍƒ†Šƒ”ƒ›ȏ‘–‹ϔ‹…ƒ–‹‘‘Ǥ;Ȁ͸Ͷ͸ͷ†ƒ–‡†͸ͿǤͶͷǤ͸Ͷ͸ͷȐǤ

‡”‹ƒŽ‡’”‡…‹ƒ–‹‘
ˆƒ›ƒ••‡–ǡ‘™Š‹…Š†‡’”‡…‹ƒ–‹‘‹•…Žƒ‹‡†‘„ƒ•‹•‘ˆǡ‹••‘Ž†ƒ†–Š‡ƒ‘—–„›™Š‹…Š‘‡›’ƒ›ƒ„Ž‡
–‘‰‡–Š‡”™‹–Š•…”ƒ’˜ƒŽ—‡ǡˆƒŽŽ•Š‘”–‘ˆ‘ˆ•—…Šƒ••‡–ǡ†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‡“—ƒŽ–‘•—…Š†‡ϐ‹…‹‡…›‹
–Š‡›‡ƒ”‘ˆ•ƒŽ‡Ǥ

ƒŽƒ…‹‰Šƒ”‰‡ȏ‡…–‹‘ͶͳȋʹȌȐ
ˆ ƒ› ƒ••‡–ǡ ‘ ™Š‹…Š †‡’”‡…‹ƒ–‹‘ ‹• …Žƒ‹‡† ‘ „ƒ•‹• ‘ˆ ǡ ƒ••‡– ‹• •‘Ž† ƒ† –Š‡ ƒ‘—– „› ™Š‹…Š ‘‡›•
’ƒ›ƒ„Ž‡–‘‰‡–Š‡”™‹–Š•…”ƒ’˜ƒŽ—‡ǡ‡š…‡‡†•‘ˆ•—…Šƒ••‡–ǡ–Š‡–Š‡Ž‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰•ŠƒŽŽ„‡–ƒšƒ„Ž‡—†‡”
–Š‡Š‡ƒ†
Ǥ
ȋ‹Ȍ †‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡ƒ…–—ƒŽ…‘•–ƒ†Ǥ
ȋ‹‹Ȍ †‹ˆˆ‡”‡…‡„‡–™‡‡ƒ‰‰”‡‰ƒ–‡‘ˆ‘‡›•’ƒ›ƒ„Ž‡ƒ†Ǥ
††‹–‹‘ƒŽ‡’”‡…‹ƒ–‹‘ȏ‡…–‹‘͵ʹȋͳȌȐ
Š‡ƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒ••‡••‡‡‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘‘ˆƒ›
ƒ”–‹…Ž‡‘”–Š‹‰‘”‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ‰‡‡”ƒ–‹‘ǡ–”ƒ•‹••‹‘‘”†‹•–”‹„—–‹‘‘ˆ’‘™‡”ƒ––Š‡”ƒ–‡‘ˆʹͲΨ
‘ˆƒ…–—ƒŽ…‘•–‘ˆ‡Ž‹‰‹„Ž‡‡™ƒ…Š‹‡”›‘”’Žƒ–ȋ‘–Š‡”–Šƒ•Š‹’•ƒ†ƒ‹”…”ƒˆ–•ƒ…“—‹”‡†ƒ†‹•–ƒŽŽ‡†‹ƒ’”‡˜‹‘—•
›‡ƒ”Ǥ‘™‡˜‡”‹…ƒ•‡‘ˆ˜‡•–‡–‹•ƒ†‡‹‡™Žƒ–ƒ†ƒ…Š‹‡”›‹‘–‹ϐ‹‡†ƒ…™ƒ”†ƒ”‡ƒ•‹•–ƒ–‡‘ˆ†Š”ƒ
”ƒ†‡•Š‘”‡Žƒ‰ƒƒ‘‘”ƒˆ–‡”ͳȀͶȀͳͷ„—–„‡ˆ‘”‡ͲͳȀͲͶȀʹͲʹͲǡ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†̷͵ͷΨ‘ˆ
…–—ƒŽ…‘•–ǤŠ‡”‡ˆ‘”‡‹”‡•’‡…–‘ˆ‡™’Žƒ–ƒ†ƒ…Š‹‡”›ƒ…“—‹”‡†ƒ†‹•–ƒŽŽ‡†‹•—…Š‘–‹ϐ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•‘
‘”ƒˆ–‡”ͲͳǤͲͶǤʹͲʹͳ†‡†—…–‹‘—Ȁ•͵ʹ‹•‘–ƒŽŽ‘™ƒ„Ž‡Ǥ††‹–‹‘ƒŽ‡’”‡…‹ƒ–‹‘•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†‹ˆǦ
ȋƒȌ ƒ›ƒ…Š‹‡”›‘”’Žƒ–™Š‹…Šǡ„‡ˆ‘”‡‹–•‹•–ƒŽŽƒ–‹‘„›–Š‡ƒ••‡••‡‡ǡ™ƒ•—•‡†‡‹–Š‡”™‹–Š‹‘”‘—–•‹†‡†‹ƒ
„›ƒ›‘–Š‡”’‡”•‘Ǣ‘”
ȋ„Ȍ ƒ› ƒ…Š‹‡”› ‘” ’Žƒ– ‹•–ƒŽŽ‡† ‹ ƒ› ‘ˆϐ‹…‡ ’”‡‹•‡• ‘” ƒ› ”‡•‹†‡–‹ƒŽ ƒ……‘‘†ƒ–‹‘ǡ ‹…Ž—†‹‰
ƒ……‘‘†ƒ–‹‘‹–Š‡ƒ–—”‡‘ˆƒ‰—‡•–Š‘—•‡Ǣ‘”
ȋ…Ȍ ƒ›‘ˆϐ‹…‡ƒ’’Ž‹ƒ…‡•‘””‘ƒ†–”ƒ•’‘”–˜‡Š‹…Ž‡•Ǣ‘”
ȋ†Ȍ ƒ›ƒ…Š‹‡”›‘”’Žƒ–ǡ–Š‡™Š‘Ž‡‘ˆ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ™Š‹…Š‹•ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘ȋ™Š‡–Š‡”„›™ƒ›‘ˆ
†‡’”‡…‹ƒ–‹‘‘”‘–Š‡”™‹•‡Ȍ‹…‘’—–‹‰–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••
‘”’”‘ˆ‡••‹‘dz‘ˆƒ›‘‡’”‡˜‹‘—•›‡ƒ”Ǥ
 ͳͻͺ Lesson 4 Ȉ EP-TL

Note:
Š‡”‡ƒ••‡–‹•’—”…Šƒ•‡†‹•ƒ‡’”‡˜‹‘—•›‡ƒ”ƒ†’—––‘—•‡‹„—•‹‡••‹•ƒ‡›‡ƒ”ˆ‘”Ž‡••–ŠƒͳͺͲ†ƒ›•–Š‡
ƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™‡†ƒ–ͷͲΨ‘ˆ”ƒ–‡‘ˆƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘Ǥ‘™‡˜‡”‹…ƒ•‡‘ˆŽƒ–ƒ†ƒ…Š‹‡”›
’—”…Šƒ•‡†ƒ†‹•–ƒŽŽ‡†‹‘–‹ϐ‹‡†ƒ…™ƒ”†ƒ”‡ƒ•‘ˆ–ƒ–‡‘ˆ†Š”ƒ”ƒ†‡•Šƒ†‡Žƒ‰ƒƒƒ†’—––‘—•‡ˆ‘”Ž‡••
–ŠƒͳͺͲ†ƒ›•ǡͷͲΨ‘ˆƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘™‹ŽŽ„‡ƒŽŽ‘™‡†‹’”‡˜‹‘—•›‡ƒ”‹™Š‹…Šƒ••‡–‹•’—––‘—•‡ƒ†ͷͲΨ
‹‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
Š‡”‡ƒ••‡–‹•’—”…Šƒ•‡†ƒ†’—––‘—•‡‹„—•‹‡••‹–Š‡•ƒ‡’”‡˜‹‘—•›‡ƒ”ˆ‘”Ž‡••–ŠƒͳͺͲ†ƒ›•–Š‡ƒ††‹–‹‘ƒŽ
†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™‡†ƒ–ͷͲΨ‘ˆ”ƒ–‡‘ˆƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘ƒ†„ƒŽƒ…‡ͷͲΨ‘ˆƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘‹
‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
ˆƒ†‹˜‹†—ƒŽ‘” ‘’–•–‘„‡–ƒš‡†ƒ•’‡”–Š‡‡™ƒŽ–‡”ƒ–‹˜‡”‡‰‹‡—†‡”•‡…–‹‘ͷͷͻŠ‡Ȁ‹–™‹ŽŽ‘–„‡
‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘‘ˆƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘Ǥȏ•‡†‡†„› ‹ƒ…‡…–ǡ͸Ͷ͸ͶȐ

ƒŽ…—Žƒ–‹‘‘ˆ”‹––‡‘™ƒŽ—‡‘ˆƒŽ‘…‘ˆ••‡–ȏ‡…–‹‘Ͷ͵ȋ͸ȌȐ
ȋƒȌ ‹†‘—––Š‡™”‹––‡†‘™˜ƒŽ—‡‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ȋȌ”‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”ǡ
‘ˆ ƒŽŽ –Š‘•‡ †‡’”‡…‹ƒ„Ž‡ ƒ••‡–• ‘ ™Š‹…Š –Š‡ †‡’”‡…‹ƒ–‹‘ ‹• ƒŽŽ‘™‡† ƒ– –Š‡ •ƒ‡ ”ƒ–‡Ǥ ŽŽ •—…Š ƒ••‡–• ƒ”‡
‘™ƒ•Dz„Ž‘…ƒ••‡–•dzǤ
ȋ„Ȍ Š‡‹…”‡ƒ•‡‹–Š‡„›–Š‡ƒ…–—ƒŽ…‘•–‘ˆƒ›ƒ••‡–ˆƒŽŽ‹‰™‹–Š‹–Šƒ–„Ž‘…ǡƒ…“—‹”‡††—”‹‰–Š‡’”‡˜‹‘—•
›‡ƒ”Ǣ
ȋ…Ȍ ‡†—…‡ˆ”‘–Š‡ƒ„‘˜‡ǡ–Š‡‘‡›•’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆƒ›ƒ••‡–ˆƒŽŽ‹‰™‹–Š‹–Šƒ–„Ž‘…ǡ™Š‹…Š‹••‘Ž†‘”
†‹•…ƒ”†‡†‘”†‡‘Ž‹•Š‡†‘”†‡•–”‘›‡††—”‹‰–Šƒ–’”‡˜‹‘—•›‡ƒ”–‘‰‡–Š‡”™‹–Š–Š‡ƒ‘—–‘ˆ–Š‡•…”ƒ’˜ƒŽ—‡ǡ
‹ˆƒ›ǡ•‘–Šƒ––Š‡ƒ‘—–‘ˆ•—…Š”‡†—…–‹‘†‘‡•‘–‡š…‡‡†–Š‡™”‹––‡†‘™˜ƒŽ—‡ƒ••‘‹…”‡ƒ•‡†Ǣƒ†
ȋ†Ȍ –Š‡…ƒ•‡‘ˆƒ•Ž—’•ƒŽ‡ǡ†‡…”‡ƒ•‡„›–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–ˆƒŽŽ‹‰™‹–Š‹–Š‡„Ž‘…ƒ•”‡†—…‡†„›–Š‡
ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘–Šƒ–™‘—Ž†Šƒ˜‡„‡‡ƒŽŽ‘™ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ǡ•‘–Šƒ––Š‡
ƒ‘—–‘ˆ•—…Š†‡…”‡ƒ•‡†‘‡•‘–‡š…‡‡†–Š‡™”‹––‡†‘™˜ƒŽ—‡Ǥ
–‡ƒ•‹ˆ–Š‡‡–…‘•‹†‡”ƒ–‹‘‘ˆƒƒ••‡–‘—–‘ˆ–Š‡„Ž‘…‹•Ž‡••–Šƒ–Š‡„ƒŽƒ…‡—†‡”ȋ‹‹Ȍǡ–Š‡”‡™‘—Ž†„‡‘
…ƒ’‹–ƒŽ‰ƒ‹Ǥˆ–Š‡‡–…‘•‹†‡”ƒ–‹‘‘ˆƒƒ••‡–‹•‘”‡–Šƒ–Š‡„ƒŽƒ…‡—†‡”ȋ‹‹Ȍȋ–Š‡˜ƒŽ—‡‘ˆƒŽŽƒ••‡–•‹–Š‡
„Ž‘…Ȍ–Š‡‡š…‡•••ŠƒŽŽ„‡†‡‡‡†–‘„‡•Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹ǤˆƒŽŽ–Š‡ƒ••‡–•‘ˆ–Š‡„Ž‘…ƒ”‡•‘Ž†‹–Š‡’”‡˜‹‘—•
›‡ƒ”ƒ†–Š‡‡–…‘•‹†‡”ƒ–‹‘‹•Ž‡••–Šƒ–Š‡„ƒŽƒ…‡—†‡”ȋ‹‹Ȍǡ–Š‡Ž‘•••ŠƒŽŽ„‡†‡‡‡†–‘„‡•Š‘”––‡”…ƒ’‹–ƒŽŽ‘••Ǥ
Š‡”‡ ƒ› …ƒ’‹–ƒŽ ƒ••‡– ‹• ƒ…“—‹”‡† „› –Š‡ ƒ••‡••‡‡ —†‡” ƒ •…Š‡‡ ˆ‘” …‘”’‘”ƒ–‹•ƒ–‹‘ ‘ˆ ƒ ”‡…‘‰‹•‡† •–‘…
‡š…Šƒ‰‡ ‹ †‹ƒǡ ƒ’’”‘˜‡† „› –Š‡ ‡…—”‹–‹‡• ƒ† š…Šƒ‰‡ ‘ƒ”† ‘ˆ †‹ƒ ‡•–ƒ„Ž‹•Š‡† —†‡” ‡…–‹‘ ͵ ‘ˆ –Š‡
‡…—”‹–‹‡•ƒ†š…Šƒ‰‡‘ƒ”†‘ˆ†‹ƒǡͳͻͻʹȋͳͷ‘ˆͳͻͻʹȌǡ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡
ƒ‘—–™Š‹…Š™‘—Ž†Šƒ˜‡„‡‡”‡‰ƒ”†‡†ƒ•ƒ…–—ƒŽ…‘•–Šƒ†–Š‡”‡„‡‡‘•—…Š…‘”’‘”ƒ–‹•ƒ–‹‘Ǥ
‘”šƒ’Ž‡ǣ
‡’”‡…‹ƒ„Ž‡ƒ••‡–•‘ͳǤͶǤʹͲͳͻ‘™Š‹…Š–Š‡†‡’”‡…‹ƒ–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡ƒ––Š‡•ƒ‡”ƒ–‡‘ˆʹͷΨǤ

••‡– ͵ǡͲͲǡͲͲͲ
••‡– ͷǡͲͲǡͲͲͲ
••‡– ͹ǡͲͲǡͲͲͲ
‘–ƒŽ ͳͷǡͲͲǡͲͲͲ
Less ǣȏ‡’”‡…‹ƒ–‹‘̷ʹͷΨ‘ˆͳͷǡͲͲǡͲͲͲȐ ȋ͵ǡ͹ͷǡͲͲͲȌ
ȋ‹Ȍ ”‹––‡†‘™˜ƒŽ—‡‘ͳǤͶǤʹͲʹͳ‘ˆ„Ž‘…‘ˆƒ••‡–• ͳͳǡʹͷǡͲͲͲ
Add ǣ‘•–‘ˆ••‡–’—”…Šƒ•‡††—”‹‰ʹͲʹͳǦʹʹ ͸ǡͲͲǡͲͲͲ
ȋ‹‹Ȍ ƒŽƒ…‡ ͳ͹ǡʹͷǡͲͲͲ
••‡–•‘Ž††—”‹‰›‡ƒ”ʹͲʹͳǦʹʹ ȋ͸ǡ͹ͷǡͲͲͲȌ
ȋ‹‹‹Ȍ ƒŽƒ…‡ ͳͲǡͷͲǡͲͲͲ
‡••ǣ‡’”‡…‹ƒ–‹‘ˆ‘”ʹͲʹͳǦʹʹ̷ʹͷΨ‘ˆ•ǤͳͲǡͷͲǡͲͲͲ ȋʹǡ͸ʹǡͷͲͲȌ
”‹––‡†‘™˜ƒŽ—‡‘ˆƒŽŽƒ••‡–•‘ͳǤͶǤʹͲʹʹα͹ǡͺ͹ǡͷͲͲ
Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͳͻͻ

ŽŽ—•–”ƒ–‹‘ʹǣ

”Ǥ‘Šƒǡ‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ‰‡‡”ƒ–‹‘‘ˆ’‘™‡”ǡˆ—”‹•Š‡•–Š‡ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ˆ‘” ʹͲʹͳǦʹʹǤ‡
Šƒ•‘’–‡†ˆ‘”‡–Š‘†ǡ›‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡ƒŽŽ‘™ƒ„Ž‡†‡’”‡…‹ƒ–‹‘ˆ‘” ʹͲʹͳǦʹʹǤ
Š‡’‡‹‰Ž‘…ƒ•‘ͳ•–’”‹ŽǡʹͲʹͳ™ƒ•ͻͷͲǡͲͲͲȋͳͷΨ„Ž‘…ȌǤ‡ƒ…“—‹”‡†•‡…‘†Šƒ†ƒ…Š‹‡”›ˆ‘”
ʹͷͲǡͲͲͲ‘͵Ͳ–Š‘˜ǯʹͳǤ‡ƒŽ•‘ƒ…“—‹”‡†‘™‡”
‡‡”ƒ–‹‘ƒ…Š‹‡”›‘ͳ•–—‰ʹͲʹͳˆ‘”ͳͲǡͲͲǡͲͲͲǤ
‡‹˜‡•–‡†‹ƒˆ‘”ˆϐ‹…‡ˆ‘”ʹͲͲǡͲͲͲ‘ͻ–Š‡’ǯʹͳƒ†ƒ’‘ŽŽ—–‹‘…‘–”‘Ž‡“—‹’‡–ˆ‘”ʹͷͲͲͲͲ
‘͵Ͳ–Š —ǯʹͳǤ‡„‘—‰Š–ƒ††‹–‹‘ƒŽ’‘™‡”‰‡‡”ƒ–‹‘ƒ…Š‹‡”›ˆ‘”ͷͲͲǡͲͲͲ‘ͳ•– ‡„ǯʹʹǤŽ•‘ǡŠ‡•‘Ž†
ƒ••‡–•˜ƒŽ—‡†ͶͲͲǡͲͲͲˆ‘”͵ͷͲǡͲͲͲ†—”‹‰–Š‡›‡ƒ”Ǥ
‘Ž—–‹‘ǣ

ƒ”–‹…—Žƒ”•  Ž‘… ƒ–‡ ƒ”–‹…—Žƒ”•  Ž‘… ƒ–‡

‹”‘ŽŽ—–‹‘
͵Ͳ–Š —ǡ
’‡‹‰ ͻǡͷͲǡͲͲͲ ͳͷΨ ‘–”‘Ž ʹǡͷͲǡͲͲͲ ͶͲΨ
ʹͲ
“—‹’‡–
͵Ͳ–Š
…“Ǥ‡…‘†Šƒ† ʹǡͷͲǡͲͲͲ ͳͷΨ
‘˜ǯʹͳ
‘™‡”
‡‡”ƒ–‹‘
ͳͲǡͲͲǡͲͲͲ ͳͷΨ ͳ•–—‰ǯʹͳ
ƒ…Š‹‡”›
ͻ–Š
ˆ‘”ˆϐ‹…‡ ʹǡͲͲǡͲͲͲ ͳͷΨ
‡’ǯʹͳ
‘™‡”
‡‡”ƒ–‹‘
ͷǡͲͲǡͲͲͲ ͳͷΨ ͳ•– ‡„ǯʹʹ
ƒ…Š‹‡”›
ƒŽ‡ƒŽ—‡ ͵ǡͷͲǡͲͲͲ
‡’”‡…‹ƒ–‹‘
–Š‡‘‡•’—––‘
ͳͺǡ͹ͷͲ
—•‡ˆ‘”δͳͺͲ†ƒ›
͵͹ǡͷͲͲ
–Š‡‡ƒ‹‹‰ –Š‡‘ŽŽ—–‹‘
Ž‘…ǡ™Š‹…Š…‘‡• ʹǡ͹ͲǡͲͲͲ ‘–”‘Ž ͳǡͲͲǡͲͲͲ
–‘ͳͺǡͲͲǡͲͲͲ “—‹’‡–
‡’”‡…‹ƒ–‹‘
͵ǡʹ͸ǡʹͷͲ
ƒŽŽ‘™ƒ„Ž‡
††Ž‡’”‡…‹ƒ–‹‘ ††Ž‡’”‡…‹ƒ–‹‘
ƒŽŽ‘™ƒ„Ž‡‘‘™‡” ƒŽŽ‘™ƒ„Ž‡‘
ʹǡͲͲǡͲͲͲ ͷͲǡͲͲͲ

‡‡”ƒ–‹‘ –Š‡‘ŽŽ‘–”‘Ž
ƒ…Š‹‡”›̷ʹͲ “—‹’‡–̷
‘™‡”
‡‡”ƒ–‹‘
ƒ…Š‹‡”›̷ʹͲΨ
ͷͲǡͲͲͲ
™Š‹…Š™ƒ•—•‡†ˆ‘”
δͳͺͲ†ƒ›•
‘–ƒŽ‡’”‡…‹ƒ–‹‘ ‘–ƒŽ‡’”‡…‹ƒ–‹‘ ͳǡͷͲǡͲͲͲ
ͷǡ͹͸ǡʹͷͲ
ŽŽ‘™ƒ„Ž‡ ŽŽ‘™ƒ„Ž‡
‘–‡•ǣ
ƒȌ Š‡…‡ŽŽ•Š‹‰ŠŽ‹‰Š–‡††‡‘–‡–Š‡‘‡•™Š‹…Š™‡”‡’—––‘—•‡ˆ‘”δͳͺͲ†ƒ›•Ǥ
„Ȍ ‘™‡”‰‡‡”ƒ–‹‘‡“—‹’‡–ǡ’‘ŽŽ—–‹‘…‘–”‘Ž‡“—‹’‡–…ƒ‡Œ‘›ƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘Ǥ
…Ȍ ‘†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‘•‡…‘†Šƒ†ƒ…Š‹‡”›‘”‘ˆϐ‹…‡ƒ’’Ž‹ƒ…‡•Ž‹‡Ǥ
 ʹͲͲ Lesson 4 Ȉ EP-TL

˜‡•–‡–‹‡™Žƒ–‘”ƒ…Š‹‡”›‹‘–‹ϐ‹‡†ƒ…™ƒ”†”‡ƒ•‹‡”–ƒ‹–ƒ–‡•ȏ‡…–‹‘
͵ʹȐ
††‹–‹‘ƒŽ‹˜‡•–‡–ƒŽŽ‘™ƒ…‡‘ˆƒƒ‘—–‡“—ƒŽ–‘ͳͷΨ‘ˆ–Š‡…‘•–‘ˆ‡™ƒ••‡–ƒ…“—‹”‡†ƒ†‹•–ƒŽŽ‡†„›ƒ
ƒ••‡••‡‡‹•ƒŽŽ‘™‡†ǡ‹ˆ
ȋƒȌ Š‡•‡–•—’ƒ—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡ˆ‘”ƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘‘ˆƒ›ƒ”–‹…Ž‡‘”–Š‹‰‘‘”ƒˆ–‡”ͳ•–
’”‹ŽǡʹͲͳͷ‹ƒ›‘–‹ϐ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•‹–Š‡–ƒ–‡‘ˆ†Š”ƒ”ƒ†‡•Šƒ†–Š‡–ƒ–‡‘ˆ‡Žƒ‰ƒƒǢƒ†
ȋ„Ȍ –Š‡‡™ƒ••‡–•ƒ”‡ƒ…“—‹”‡†ƒ†‹•–ƒŽŽ‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ•ƒ‹†—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡†—”‹‰–Š‡’‡”‹‘†
„‡‰‹‹‰ˆ”‘–Š‡ͳ•–’”‹ŽǡʹͲͳͷ–‘͵ͳ•–ƒ”…ŠǡʹͲʹͲǤ
Š‡”‡ˆ‘”‡ǡ‹”‡•’‡…–‘ˆ‡™’Žƒ–ƒ†ƒ…Š‹‡”›ƒ…“—‹”‡†ƒ†‹•–ƒŽŽ‡†‹•—…Š‘–‹ϐ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•‘‘”
ƒˆ–‡”ͳǤͶǤʹͲʹͳǡ†‡†—…–‹‘—†‡”•‡…–‹‘͵ʹ‹•‘–ƒŽŽ‘™ƒ„Ž‡Ǥ —”–Š‡”ǡƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘‹•‘– ƒŽŽ‘™ƒ„Ž‡ƒ–
–Š‡‡Šƒ…‡†”ƒ–‡‘ˆ͵ͷΨǤ
”ƒ•ˆ‡”‘ˆ–Š‡’Žƒ–‘”ƒ…Š‹‡”›ˆ‘”ƒ’‡”‹‘†‘ˆͷ›‡ƒ”•Šƒ•ƒŽ•‘„‡‡”‡•–”‹…–‡†Ǥ‘™‡˜‡”ǡ–Š‹•”‡•–”‹…–‹‘•ŠƒŽŽ‘–
ƒ’’Ž›‹ƒ…ƒ•‡‘ˆƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”„—–•ŠƒŽŽ…‘–‹—‡–‘ƒ’’Ž›–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›‘””‡•—Ž–‹‰
…‘’ƒ›ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Š‡”‡ƒƒ••‡••‡‡‹…—”•ƒ›‡š’‡†‹–—”‡ˆ‘”ƒ…“—‹•‹–‹‘‘ˆƒ›ƒ••‡–‹”‡•’‡…–‘ˆ™Š‹…Šƒ’ƒ›‡–ȋ‘”ƒ‰‰”‡‰ƒ–‡
‘ˆ’ƒ›‡–•ƒ†‡–‘ƒ’‡”•‘‹ƒ†ƒ›Ȍǡ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡…Š‡“—‡Ȁ†”ƒˆ–‘”—•‡‘ˆ–Š”‘—‰Šƒ
„ƒƒ……‘—–ǡ‡š…‡‡†••ǤͳͲǡͲͲͲǡ•—…Š’ƒ›‡–•ŠƒŽŽ‘–„‡‡Ž‹‰‹„Ž‡ˆ‘”˜‡•–‡–ŽŽ‘™ƒ…‡—Ȁ•͵ʹǤ
‘–‡ǣˆƒ‹†‹˜‹†—ƒŽ‘” ‘’–•–‘„‡–ƒš‡†ƒ•’‡”–Š‡‡™ƒŽ–‡”ƒ–‹˜‡”‡‰‹‡—†‡”•‡…–‹‘ͷͷͻŠ‡Ȁ‹–
™‹ŽŽ‘–„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘‘ˆ‹˜‡•–‡–‹‡™’Žƒ–ƒ†ƒ…Š‹‡”›‹‘–‹ϔ‹‡†„ƒ…™ƒ”†ƒ”‡ƒ•Ǥ
[As Amended by Finance Act, 2020]

‡ƒȀ‘ˆˆ‡‡Ȁ—„„‡”‡˜‡Ž‘’‡–……‘—–ȏ‡…–‹‘͵͵Ȑ
‡…–‹‘͵͵‹•ƒ’’Ž‹…ƒ„Ž‡–‘ƒƒ••‡••‡‡…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ‰”‘™‹‰ƒ†ƒ—ˆƒ…–—”‹‰–‡ƒ‹†‹ƒǤ ‘”
…Žƒ‹‹‰–Š‡†‡†—…–‹‘—Ȁ•͵͵–Š‡ƒ••‡••‡‡Šƒ•–‘•ƒ–‹•ˆ›–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
Ȉ ƒƒ••‡••‡‡ǡ…ƒ””›‹‰‘„—•‹‡••‘ˆ‰”‘™‹‰ƒ†ƒ—ˆƒ…–—”‹‰–‡ƒ‘”…‘ˆˆ‡‡‘””—„„‡”‹†‹ƒ
Ȉ ›ƒ‘—–†‡’‘•‹–‡†™‹–Š–Š‡ƒ–‹‘ƒŽƒ‘”‹ƒƒ……‘—–ƒ‹–ƒ‹‡†„›–Š‡ƒ••‡••‡‡™‹–Š–Š‡ƒ‹
ƒ……‘”†ƒ…‡™‹–Šƒ†ˆ‘”–Š‡’—”’‘•‡••’‡…‹ϐ‹‡†‹ƒ•…Š‡‡ƒ’’”‘˜‡†‹–Š‹•„‡ŠƒŽˆ„›–Š‡‡ƒ‘ƒ”†‘ˆ†‹ƒ
‘”–Š‡‘ˆˆ‡‡‘ƒ”†‘ˆ†‹ƒ‘”–Š‡—„„‡”‘ƒ”†Ǣ
Ȉ ƒ••‡••‡‡•™Š‘•‡ƒ……‘—–•Šƒ˜‡„‡‡ƒ—†‹–‡†ƒ†–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒŽ‘‰™‹–ŠŠ‹•”‡–—”‘ˆ‹…‘‡–Š‡
”‡’‘”–‘ˆ•—…Šƒ—†‹–‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ††—Ž›•‹‰‡†ƒ†˜‡”‹ϐ‹‡†„›•—…Šƒ……‘—–ƒ–Ǥ…ƒ•‡•™Š‡”‡
–Š‡ƒ……‘—–•‘ˆ–Š‡–ƒš’ƒ›‡”ƒ”‡”‡“—‹”‡†–‘„‡ƒ—†‹–‡†—†‡”ƒ›‘–Š‡”Žƒ™ǡ‹–™‘—Ž†„‡•—ˆϐ‹…‹‡–‹ˆ–Š‡
ƒ……‘—–•ƒ”‡ƒ—†‹–‡†—†‡”–Šƒ–Žƒ™ƒ†–Š‡ƒ—†‹–”‡’‘”–ƒ•’‡”–Šƒ–Žƒ™‹•ˆ—”‹•Š‡†™‹–Š–Š‡”‡–—”ƒŽ‘‰
™‹–Šƒˆ—”–Š‡””‡’‘”–‹–Š‡ˆ‘”’”‡•…”‹„‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•’”‘˜‹•‹‘Ǥ
‡†—…–‹‘ǣ
ȋƒȌ ƒ•—‡“—ƒŽ–‘–Š‡ƒ‘—–‘”–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–••‘†‡’‘•‹–‡†Ǣ‘”
ȋ„Ȍ ‘”–›’‡”…‡–‘ˆ–Š‡’”‘ϐ‹–•‘ˆ•—…Š„—•‹‡••ȋ…‘’—–‡†—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”
’”‘ˆ‡••‹‘dz„‡ˆ‘”‡ƒ‹‰ƒ›†‡†—…–‹‘—†‡”‡…–‹‘͵͵Ȍǡ™Š‹…Š‡˜‡”‹•Ž‡••Ǥ
Noteǣ
ͳǤ Š‡ƒ—†‹–”‡’‘”–‹•–‘„‡ˆ—”‹•Š‡†ƒ–Ž‡ƒ•–‘‡‘–Š’”‹‘”–‘–Š‡†—‡†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡
—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǤȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
ʹǤ ˆƒ†‹˜‹†—ƒŽ‘” ‘’–•–‘„‡–ƒš‡†ƒ•’‡”–Š‡‡™ƒŽ–‡”ƒ–‹˜‡”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷŠ‡Ȁ‹–™‹ŽŽ
‘–„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘‘ƒ……‘—–‘ˆ‡ƒȀ‘ˆˆ‡‡Ȁ—„„‡”†‡˜‡Ž‘’‡–ƒ……‘—–Ǥȏ•‡†‡†„›
‹ƒ…‡…–ǡʹͲʹͲȐ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͲͳ

‹–Š†”ƒ™ƒŽ‘ˆ‘—–

Š‡”‡‹•ƒ”‡•–”‹…–‹‘‘–Š‡™‹–Š†”ƒ™ƒŽ‘ˆ–Š‡ƒ‘—–•–ƒ†‹‰‹–Š‡…”‡†‹–‘ˆ•—…Š’‡…‹ƒŽƒ……‘—–‘ˆ–Š‡ƒ••‡••‡‡ǡ
‹Ǥ‡Ǥǡ –Š‡ ™‹–Š†”ƒ™ƒŽ —•– „‡ ƒ†‡ ‡‹–Š‡”ǣ ȋ‹Ȍ ˆ‘” –Š‡ ’—”’‘•‡• •’‡…‹ϐ‹‡† ‹ –Š‡ •…Š‡‡ǡ ‘”ǡ ‹ –Š‡ ˆ‘ŽŽ‘™‹‰
…‹”…—•–ƒ…‡•ǣȋƒȌ…Ž‘•—”‡‘ˆ„—•‹‡••Ǣȋ„Ȍ†‡ƒ–Š‘ˆƒƒ••‡••‡‡Ǣȋ…Ȍ’ƒ”–‹–‹‘‘ˆƒǤǤ ǤǢȋ†Ȍ†‹••‘Ž—–‹‘‘ˆƒϐ‹”Ǣȋ‡Ȍ
Ž‹“—‹†ƒ–‹‘‘ˆƒ…‘’ƒ›Ǥ

‘•‡“—‡…‡•‹…ƒ•‡‘ˆ…Ž‘•—”‡‘ˆ—•‹‡••

‹–Š†”ƒ™ƒŽ‘ˆƒ›ƒ‘—–‹–Š‡‡˜‡–‘ˆǣȋƒȌ…Ž‘•—”‡‘ˆ„—•‹‡••‘”Ǣȋ„Ȍ†‹••‘Ž—–‹‘‘ˆƒϐ‹”ǡ–Š‡™Š‘Ž‡‘ˆ•—…Š
ƒ‘—–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘‘ˆ–Šƒ–’”‡˜‹‘—•›‡ƒ”ƒ†…Šƒ”‰‡ƒ„Ž‡
–‘‹…‘‡Ǧ–ƒšƒ•‹ˆ–Š‡„—•‹‡••Šƒ†‘–…Ž‘•‡†ǡ‘”ǡ–Š‡ϐ‹”‘–†‹••‘Ž˜‡†ƒ†–ƒšƒ„Ž‡‹–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
‘˜‡”•‡Ž›ǡ™Š‡”‡ƒ›ƒ‘—–•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ–Š‡ƒ••‡••‡‡‹–Š‡•’‡…‹ƒŽƒ……‘—–‘”‹–Š‡‡ƒ‡’‘•‹–
……‘—– ‹• —–‹Ž‹•‡† „› –Š‡ ƒ••‡••‡‡ ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ƒ› ‡š’‡†‹–—”‡ ‹ …‘‡…–‹‘ ™‹–Š •—…Š „—•‹‡•• ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ǡ•—…Š‡š’‡†‹–—”‡•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•ƒ”‡˜‡—‡†‡†—…–‹‘‹…‘’—–‹‰–Š‡‹…‘‡
…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ
‘Ǧ—–‹Ž‹•ƒ–‹‘‘ˆƒ›ƒ‘—–”‡Ž‡ƒ•‡†„›–Š‡ƒ–‹‘ƒŽƒǡˆ‘”„‡‹‰—–‹Ž‹•‡†„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡•‘ˆ
ƒ„—•‹‡••ǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ǡ”‡†‡”•–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡ƒ‘—–‘–—–‹Ž‹•‡†ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ
†‡‡‡†ƒ•’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••ƒ†ǡƒ……‘”†‹‰Ž›ǡ…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšƒ•‹…‘‡‘ˆ–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
Š‡‡š…‡’–‹‘•–‘–Š‹•’”‘˜‹•‹‘ƒ”‡ǡ™Š‡–Š‡ƒ‘—–‹•‘–—–‹Ž‹•‡†‹–Š‡…ƒ•‡•‘ˆǣȋ‹Ȍ†‡ƒ–Š‘ˆƒƒ••‡••‡‡Ǣȋ‹‹Ȍ
’ƒ”–‹–‹‘‘ˆƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›Ǣȋ‹‹‹ȌŽ‹“—‹†ƒ–‹‘‘ˆƒ…‘’ƒ›Ǥ
…ƒ•‡•™Š‡”‡–Š‡ƒ••‡–ƒ…“—‹”‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡‘”†‡’‘•‹–•…Š‡‡‹••‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†
‹ƒ›’”‡˜‹‘—•›‡ƒ”„›–Š‡ƒ••‡••‡‡–‘ƒ›’‡”•‘ǡƒ–ƒ›–‹‡„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ‡‹‰Š–›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–™ƒ•ƒ…“—‹”‡†ǡ•—…Š’ƒ”–‘ˆ–Š‡…‘•–‘ˆ–Š‡ƒ••‡–ƒ•‹•”‡Žƒ–ƒ„Ž‡–‘–Š‡†‡†—…–‹‘ƒŽ”‡ƒ†›
ƒŽŽ‘™‡†‹•†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‹•
•‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†ƒ†…Šƒ”‰‡†–‘‹…‘‡Ǧ–ƒšƒ……‘”†‹‰Ž›Ǥ

š…‡’–‹‘–‘–Š‡”‘˜‹•‹‘ǣ
ȋ‹Ȍ –Š‡ ƒ••‡– ‹• •‘Ž† ‘” ‘–Š‡”™‹•‡ –”ƒ•ˆ‡””‡† „› –Š‡ ƒ••‡••‡‡ –‘
‘˜‡”‡–ǡ Ž‘…ƒŽ ƒ—–Š‘”‹–›ǡ …‘”’‘”ƒ–‹‘
‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ‡–”ƒŽǡ–ƒ–‡‘””‘˜‹…‹ƒŽ…–‘”ƒ
‘˜‡”‡–…‘’ƒ›ƒ•†‡ϐ‹‡†‹‡…–‹‘͸ͳ͹
‘ˆ–Š‡‘’ƒ‹‡•…–ǡͳͻͷ͸Ǣ‘”
ȋ‹‹Ȍ Š‡”‡–Š‡•ƒŽ‡‘”–”ƒ•ˆ‡”‘ˆ–Š‡ƒ••‡–‹•ƒ†‡‹…‘‡…–‹‘™‹–Š–Š‡•—……‡••‹‘‘ˆƒϐ‹”„›ƒ…‘’ƒ›‹
–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘„›–Š‡ϐ‹”ƒ•ƒ”‡•—Ž–‘ˆ™Š‹…Š–Š‡ϐ‹”•‡ŽŽ•‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡”•–‘
–Š‡ …‘’ƒ› ƒ› ƒ••‡– ƒ† –Š‡ •…Š‡‡ ‘” –Š‡ †‡’‘•‹– •…Š‡‡ …‘–‹—‡• –‘ ƒ’’Ž› –‘ –Š‡ …‘’ƒ› ‹ –Š‡
ƒ‡”ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡ϐ‹”‘Ž›™Š‡”‡ǡ
ȋ‹Ȍ ƒŽŽ –Š‡ ’”‘’‡”–‹‡• ‘ˆ –Š‡ ϐ‹” ”‡Žƒ–‹‰ –‘ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ‹‡†‹ƒ–‡Ž› „‡ˆ‘”‡ –Š‡ •—……‡••‹‘
„‡…‘‡–Š‡’”‘’‡”–‹‡•‘ˆ–Š‡…‘’ƒ›Ǣ
ȋ‹‹Ȍ ƒŽŽ–Š‡Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡ϐ‹””‡Žƒ–‹‰–‘–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡•—……‡••‹‘
„‡…‘‡–Š‡Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡…‘’ƒ›Ǣƒ†
ȋ‹‹‹Ȍ ƒŽŽ–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡…‘’ƒ›™‡”‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡•—……‡••‹‘Ǥ
ȋƒȌ Dz‘ˆˆ‡‡‘ƒ”†dz‡ƒ•–Š‡‘ˆˆ‡‡‘ƒ”†…‘•–‹–—–‡†—†‡”‡…–‹‘Ͷ‘ˆ–Š‡‘ˆˆ‡‡…–ǡͳͻͶʹȋ͹‘ˆ
ͳͻͶʹȌǢ
ȋƒƒȌ ȋƒƒȌ Dzƒ–‹‘ƒŽ ƒdz ‡ƒ• –Š‡ ƒ–‹‘ƒŽ ƒ ˆ‘” ‰”‹…—Ž–—”‡ ƒ† —”ƒŽ ‡˜‡Ž‘’‡–
‡•–ƒ„Ž‹•Š‡†—†‡”‡…–‹‘͵‘ˆ–Š‡ƒ–‹‘ƒŽƒˆ‘”‰”‹…—Ž–—”‡ƒ†—”ƒŽ‡˜‡Ž‘’‡–…–ǡ
ͳͻͺͳȋ͸ͳ‘ˆͳͻͺͳȌǢ
ȋƒ„Ȍ ȋƒ„ȌDz—„„‡”‘ƒ”†dz‡ƒ•–Š‡—„„‡”‘ƒ”†…‘•–‹–—–‡†—†‡”—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘Ͷ‘ˆ
–Š‡—„„‡”‘ƒ”†…–ǡͳͻͶ͹ȋʹͶ‘ˆͳͻͶ͹ȌǢ
ȋ„Ȍ Dz‡ƒ‘ƒ”†dz‡ƒ•–Š‡‡ƒ‘ƒ”†‡•–ƒ„Ž‹•Š‡†—†‡”‡…–‹‘Ͷ‘ˆ–Š‡‡ƒ…–ǡͳͻͷ͵ȋʹͻ‘ˆ
ͳͻͷ͵ȌǤ
 ʹͲʹ Lesson 4 Ȉ EP-TL

‘’—–ƒ–‹‘‘ˆ—•‹‡••‹…‘‡‹…ƒ•‡•™Š‡”‡‹…‘‡‹•’ƒ”–Ž›‰”‹…—Ž–—”‡ƒ†’ƒ”–Ž›—•‹‡••
ƒšƒ„‹Ž‹–›‹…ƒ•‡‘ˆ…‘’‘•‹–‡‹…‘‡ˆ‘”ƒ—ˆƒ…–—”‹‰ƒ†’‡”ˆ‘”‹‰‘–Š‡”’”‘…‡••‡•‘ˆ—„„‡”Ǣ–‡ƒƒ†‘ˆˆ‡‡
‹••—ƒ”‹œ‡†ƒ•—†‡”ǣ

—•‹‡••‹…‘‡ ‰”‹…—Ž–—”ƒŽ
S. No. ƒ–—”‡‘ˆ…‘’‘•‹–‡‹…‘‡
ȋƒšƒ„Ž‡Ȍ …‘‡ȋš‡’–Ȍ

ͳ …‘‡ˆ”‘–Š‡ƒ—ˆƒ…–—”‡‘ˆ”—„„‡” ͵ͷΨ ͸ͷΨ

…‘‡ˆ”‘–Š‡ƒ—ˆƒ…–—”‡‘ˆ…‘ˆˆ‡‡
ʹ Ȉ •ƒŽ‡‘ˆ…‘ˆˆ‡‡‰”‘™ƒ†…—”‡† ʹͷΨ ͹ͷΨ
Ȉ •ƒŽ‡‘ˆ…‘ˆˆ‡‡‰”‘™ǡ…—”‡†ǡ”‘ƒ•–‡†ƒ†‰”‘—† ͶͲΨ ͸ͲΨ
͵ …‘‡ˆ”‘–Š‡ƒ—ˆƒ…–—”‡‘ˆ–‡ƒ ͶͲΨ ͸ͲΨ

‹–‡‡•–‘”ƒ–‹‘ —†ȏ‡…–‹‘͵͵Ȑ
Ȉ Š‡–ƒš’ƒ›‡”‹•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ–Š‡’”‘•’‡…–‹‰ˆ‘”ǡ‘”‡š–”ƒ…–‹‘‘”’”‘†—…–‹‘‘ˆǡ’‡–”‘Ž‡—‘”
ƒ–—”ƒŽ‰ƒ•‘”„‘–Š‹†‹ƒǤ
Ȉ Š‡‡–”ƒŽ
‘˜‡”‡–Šƒ•‡–‡”‡†‹–‘ƒƒ‰”‡‡‡–™‹–Š–Š‡–ƒš’ƒ›‡”ˆ‘”•—…Š„—•‹‡••Ǥ
Ȉ Š‡ ƒ••‡••‡‡ †‡’‘•‹– ™‹–Š  ƒ› ƒ‘—– ‹ ƒ ƒ……‘—– ƒ‹–ƒ‹‡† „› –Š‡ ƒ••‡••‡‡ ™‹–Š –Šƒ– „ƒ ‹ ƒ
•…Š‡‡ƒ’’”‘˜‡†„›–Š‡
‘˜‡”‡–‘ˆ†‹ƒ‹–Š‡‹‹•–”›‘ˆ‡–”‘Ž‡—ƒ†ƒ–—”ƒŽ
ƒ•Ǣ‘”†‡’‘•‹–ƒ›
ƒ‘—–‹ƒƒ……‘—–‘’‡‡†„›–Š‡ƒ••‡••‡‡‹ƒ……‘”†ƒ…‡™‹–Šǡƒ†ˆ‘”–Š‡’—”’‘•‡••’‡…‹ϐ‹‡†‹ǡƒ•…Š‡‡
ˆ”ƒ‡†„›–Š‡‹‹•–”›‘ˆ‡–”‘Ž‡—ƒ†ƒ–—”ƒŽ
ƒ•Ǥ
Ȉ Š‡ƒˆ‘”‡•ƒ‹†ƒ‘—–•ŠƒŽŽ„‡†‡’‘•‹–‡†„‡ˆ‘”‡–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
Ȉ Š‡ƒ……‘—–•‘ˆ–Š‡–ƒš’ƒ›‡”•Š‘—Ž†„‡ƒ—†‹–‡†„›ƒƒ……‘—–ƒ–ƒ•†‡ϐ‹‡†‹–Š‡‡š’Žƒƒ–‹‘„‡Ž‘™—„Ǧ
•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ʹͺͺƒ†–Š‡”‡’‘”–‘ˆ–Š‡ƒ—†‹–‘”‹•ϐ‹Ž‡†ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–
›‡ƒ”Ǥ —”–Š‡”ǡ‹…ƒ•‡™Š‡”‡–Š‡ƒ……‘—–•‘ˆ–Š‡–ƒš’ƒ›‡”ƒ”‡”‡“—‹”‡†–‘„‡ƒ—†‹–‡†—†‡”ƒ›‘–Š‡”Žƒ™ǡ‡Ǥ‰Ǥǡ
—†‡” –Š‡ ‘’ƒ‹‡• …–ǡ ‹– ™‘—Ž† „‡ •—ˆϐ‹…‹‡– ‹ˆ –Š‡ ƒ……‘—–• ƒ”‡ ƒ—†‹–‡† —†‡” –Šƒ– Žƒ™ ƒ† –Š‡ ƒ—†‹–
”‡’‘”–ƒ•’‡”–Šƒ–Žƒ™‹•ˆ—”‹•Š‡†™‹–Š–Š‡”‡–—”ƒŽ‘‰™‹–Šƒˆ—”–Š‡””‡’‘”–‹–Š‡ˆ‘”’”‡•…”‹„‡†ˆ‘”–Š‡
’—”’‘•‡•‘ˆ–Š‡’”‘˜‹•‹‘Ǥ
‘—–‘ˆ‡†—…–‹‘ǣ‘™‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰
ȋƒȌ ƒ•—‡“—ƒŽ–‘ƒ‘—–•†‡’‘•‹–‡†ƒ•‡–‹‘‡†ƒ„‘˜‡Ǣ‘”
ȋ„Ȍ ʹͲΨ‘ˆ–Š‡’”‘ϐ‹–‘ˆ•—…Š„—•‹‡••…‘’—–‡†—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz
„‡ˆ‘”‡ƒ‹‰ƒ›†‡†—…–‹‘—†‡”‡…–‹‘͵͵ƒ†„‡ˆ‘”‡ƒ†Œ—•–‹‰„”‘—‰Š–ˆ‘”™ƒ”†„—•‹‡••Ž‘••—†‡”
‡…–‹‘͹ʹǤ
Note:
ͳǤ Š‡”‡ƒ›†‡†—…–‹‘‹•…Žƒ‹‡†—†‡”–Š‹••‡…–‹‘ǡ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ•—…Šƒ‘—–
‹ƒ›‘–Š‡”’”‡˜‹‘—•›‡ƒ”Ǥ
ʹǤ Š‡”‡ƒ†‡†—…–‹‘‹•…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†—†‡”–Š‹••‡…–‹‘ǡ–‘ƒϐ‹”ǡƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”„‘†›‘ˆ
‹†‹˜‹†—ƒŽ•ǡ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘ƒ›’ƒ”–‡”‘ˆ–Š‡ϐ‹”‘”–Š‡‡„‡”‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›
‹”‡•’‡…–‘ˆ–Š‡•ƒ‡†‡’‘•‹–Ǥ
͵Ǥ ˆƒ†‹˜‹†—ƒŽ‘” ‘’–•–‘„‡–ƒš‡†ƒ•’‡”–Š‡‡™ƒŽ–‡”ƒ–‹˜‡”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷŠ‡Ȁ‹–™‹ŽŽ‘–
„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘‘ƒ……‘—–‘ˆ‹–‡‡•–‘”ƒ–‹‘ˆ—†Ǥȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
Š‡ƒ‘—–•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ•—…Š•’‡…‹ƒŽƒ……‘—–‘”•‹–‡”‡•–‘”ƒ–‹‘ƒ……‘—–ƒ›„‡™‹–Š†”ƒ™‘Ž›ˆ‘”–Š‡
’—”’‘•‡•’‡…‹ϐ‹‡†‹–Š‡•…Š‡‡‘”†‡’‘•‹–•…Š‡‡Ǥˆ–Š‡ƒ‘—–”‡Ž‡ƒ•‡†„›‘”–Š‡ƒ‘—–™‹–Š†”ƒ™ˆ”‘
•‹–‡”‡•–‘”ƒ–‹‘ƒ……‘—–‹ƒ›‡ƒ”‹•‘–—–‹Ž‹œ‡†‹–Š‡•ƒ‡’”‡˜‹‘—•›‡ƒ”ˆ‘”–Š‡’—”’‘•‡ˆ‘”™Š‹…Š‹–‹•”‡Ž‡ƒ•‡†ǡ
–Š‡ƒ‘—–‘–•‘—–‹Ž‹œ‡†™‹ŽŽ„‡–”‡ƒ–‡†ƒ•–ƒšƒ„Ž‡’”‘ϐ‹–•‘ˆ–Šƒ–›‡ƒ”ƒ†–ƒš‡†ƒ……‘”†‹‰Ž›Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͲ͵

Š‡”‡ƒ›ƒ‘—–•–ƒ†‹‰–‘–Š‡…”‡†‹–‘ˆ–Š‡ƒ••‡••‡‡‹–Š‡•’‡…‹ƒŽƒ……‘—–‘”‹–Š‡‹–‡‡•–‘”ƒ–‹‘……‘—–‹•
™‹–Š†”ƒ™‘…Ž‘•—”‡‘ˆ–Š‡ƒ……‘—–†—”‹‰ƒ›’”‡˜‹‘—•›‡ƒ”„›–Š‡ƒ••‡••‡‡ǡ–Š‡ƒ‘—–•‘™‹–Š†”ƒ™ˆ”‘–Š‡
ƒ……‘—–ƒ•”‡†—…‡†„›–Š‡ƒ‘—–ǡ‹ˆƒ›ǡ’ƒ›ƒ„Ž‡–‘–Š‡‡–”ƒŽ
‘˜‡”‡–„›™ƒ›‘ˆ’”‘ϐ‹–‘”’”‘†—…–‹‘•Šƒ”‡
ƒ•’”‘˜‹†‡†‹–Š‡ƒ‰”‡‡‡–”‡ˆ‡””‡†–‘‹‡…–‹‘Ͷʹǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”
’”‘ˆ‡••‹‘‘ˆ–Šƒ–’”‡˜‹‘—•›‡ƒ”ƒ†•ŠƒŽŽƒ……‘”†‹‰Ž›„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšƒ•–Š‡‹…‘‡‘ˆ–Šƒ–’”‡˜‹‘—•
›‡ƒ”ǤŠ‡”‡ƒ›ƒ‘—–‹•™‹–Š†”ƒ™‘…Ž‘•—”‡‘ˆ–Š‡ƒ……‘—–‹ƒ’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡„—•‹‡••…ƒ””‹‡†‘
„›–Š‡ƒ••‡••‡‡‹•‘Ž‘‰‡”‹‡š‹•–‡…‡ǡ–Š‡ƒ„‘˜‡’”‘˜‹•‹‘••ŠƒŽŽƒ’’Ž›ƒ•‹ˆ–Š‡„—•‹‡••‹•‹‡š‹•–‡…‡‹–Šƒ–
’”‡˜‹‘—•›‡ƒ”Ǥ
Š‡”‡‹•ƒ‘˜‡””‹†‹‰…‘†‹–‹‘–Šƒ––Š‡†‡†—…–‹‘—†‡”–Š‹•’”‘˜‹•‹‘…ƒ‘–„‡…Žƒ‹‡†‹”‡Žƒ–‹‘–‘ƒ‘—–•
—–‹Ž‹œ‡†ˆ‘”–Š‡’—”’‘•‡‘ˆƒ›ƒ…Š‹‡”›‘”’Žƒ––‘„‡‹•–ƒŽŽ‡†‹ƒ›‘ˆϐ‹…‡’”‡‹•‡•‘””‡•‹†‡–‹ƒŽƒ……‘‘†ƒ–‹‘
‹…Ž—†‹‰‰—‡•–Š‘—•‡Ǣƒ›‘ˆϐ‹…‡ƒ’’Ž‹ƒ…‡ǡ‘–Š‡”–Šƒ…‘’—–‡”•Ǣƒ›‘–Š‡”’Žƒ–‘”ƒ…Š‹‡”›™Š‹…Š‡‹–Š‡”‹•
‹•–ƒŽŽ‡†‹ƒ—†‡”–ƒ‹‰’”‘†—…‹‰Ž‘™’”‹‘”‹–›‹–‡••’‡…‹ϐ‹‡†‹–Š‡Ž‡˜‡–Š…Š‡†—Ž‡‹–Š‡…–‘”‹•ƒ‹–‡
‘ˆ’Žƒ–‘”ƒ…Š‹‡”›‡–‹–Ž‡†–‘ͳͲͲ’‡”…‡–™”‹–‡‘ˆˆ„›™ƒ›‘ˆ†‡’”‡…‹ƒ–‹‘‘”ˆ‘”ƒ›‘–Š‡””‡ƒ•‘‹ƒ›‘‡
›‡ƒ”Ǥ
Š‡†‡†—…–‹‘ƒŽŽ‘™‡†—†‡”–Š‹•’”‘˜‹•‹‘™‹ŽŽ„‡™‹–Š†”ƒ™‹ˆ–Š‡ƒ••‡–ƒ…“—‹”‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡
‹••‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†™‹–Š‹ͺ›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–‹•ƒ…“—‹”‡†Ǥ ‘”–Š‹•
’—”’‘•‡ǡ–Š‡…‘•–‘ˆ–Š‡ƒ••‡–”‡Žƒ–ƒ„Ž‡–‘–Š‡†‡†—…–‹‘ƒŽŽ‘™‡†™‹ŽŽ„‡–”‡ƒ–‡†ƒ•–ƒšƒ„Ž‡„—•‹‡••’”‘ϐ‹–•‘ˆ–Š‡
›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‹••‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†Ǥ
Š‡†‡†—…–‹‘ƒŽŽ‘™‡†‡ƒ”Ž‹‡”™‹ŽŽǡŠ‘™‡˜‡”ǡ‘–„‡™‹–Š†”ƒ™‹…ƒ•‡•™Š‡”‡–Š‡ƒ••‡–‹•–”ƒ•ˆ‡””‡†™‹–Š‹ͺ
›‡ƒ”•’‡”‹‘†–‘
‘˜‡”‡–ǡŽ‘…ƒŽƒ—–Š‘”‹–›•–ƒ–—–‘”›…‘”’‘”ƒ–‹‘‘”
‘˜‡”‡–…‘’ƒ›Ǥ
–™‹ŽŽƒŽ•‘‘–„‡™‹–Š†”ƒ™™Š‡”‡–Š‡–”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡‹…‘‡…–‹‘™‹–Š•—……‡••‹‘‘ˆƒϐ‹”„›ƒ…‘’ƒ›Ǥ
‘”–Š‹•’—”’‘•‡‹–‹•‡…‡••ƒ”›–Šƒ–ǣ
ȋƒȌ –Š‡•…Š‡‡…‘–‹—‡•–‘ƒ’’Ž›–‘–Š‡…‘’ƒ›‹–Š‡ƒ‡”ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡ϐ‹”Ǣ
ȋ„Ȍ –Š‡•—……‡••‘”…‘’ƒ›–ƒ‡•‘˜‡”ƒŽŽ–Š‡ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡ϐ‹”Ǣƒ†
ȋ…Ȍ ƒŽŽ–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡…‘’ƒ›™‡”‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”„‡ˆ‘”‡–Š‡•—……‡••‹‘Ǥ
…‹‡–‹ϐ‹…‡•‡ƒ”…Šȏ‡…–‹‘͵ͷȐ
Š‡–‡”•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š…‘‘–‡•ƒ†‹’Ž‹‡•ƒ…–‹˜‹–‹‡•ˆ‘”–Š‡‡š–‡•‹‘ƒ†ƒ†˜ƒ…‡‡–‘ˆ‘™Ž‡†‰‡ǡ‹–Š‡
ϐ‹‡Ž†•‘ˆƒ–—”ƒŽ‘”ƒ’’Ž‹‡†•…‹‡…‡ǡ‹…Ž—†‹‰ǡƒ‰”‹…—Ž–—”‡ǡƒ‹ƒŽŠ—•„ƒ†”‹‡•ƒ†ϐ‹•Š‡”‹‡•Ǥ

Š‡ƒŽŽ‘™ƒ„‹Ž‹–›‘ˆ‡š’‡†‹–—”‡‘•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™‘—Ž††‡’‡†‘ǣ

Ȍ‡†—…–‹‘‘ˆ‡š’‡†‹–—”‡‹…—””‡†‘”‡•‡ƒ”…Š…ƒ””‹‡†‘„›••‡••‡‡‹•‡Žˆ

…ƒ•‡–Š‡‡š’‡†‹–—”‡‹•ƒ†‡„›–Š‡ƒ••‡••‡‡Š‹•‡Žˆǡ–Š‡‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”–Š‡‡š’‡†‹–—”‡‹•”‡˜‡—‡‘”
…ƒ’‹–ƒŽ‹ƒ–—”‡ǡͳͲͲΨ‘ˆ–Š‡‡š’‡†‹–—”‡™‘—Ž†„‡ƒŽŽ‘™ƒ„Ž‡Ǥ‘™‡˜‡”ǡ‹–‹•’”—†‡––‘‘–‡–Šƒ–‹ˆ–Š‡‡š’‡†‹–—”‡
‹•–‘™ƒ”†•ƒ…“—‹•‹–‹‘‘ˆŽƒ†ǡ–Šƒ–™‘—Ž†‘–„‡ƒŽŽ‘™ƒ„Ž‡Ǥ

‡›Ǧ’‘‹–•™‹–Š”‡•’‡…––‘–Š‡†‡†—…–‹‘ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

‡˜‡—‡š’‡†‹–—”‡ǣ›”‡˜‡—‡‡š’‡†‹–—”‡‹…—””‡†„›–Š‡ƒ••‡••‡‡™‹–Š‹͵›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰
–Š‡…‘‡…‡‡–‘ˆ„—•‹‡••ǡˆ‘”™Š‹…Š”‡•‡ƒ”…Š‹•…‘†—…–‡†ǡ„›™ƒ›‘ˆ•ƒŽƒ”›–‘”‡•‡ƒ”…Š’‡”•‘‡Ž‡‰ƒ‰‡†‹
•—…Š”‡•‡ƒ”…Šǡ‘”ƒ–‡”‹ƒŽ‹’—–•ˆ‘”•—…Š”‡•‡ƒ”…Šǡ™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹–Š‡›‡ƒ”‹™Š‹…Š•—…Š„—•‹‡••
‹•…‘‡…‡†Ǥ‘™‡˜‡”ǡ•—…Š‡š’‡†‹–—”‡™‘—Ž†„‡Ž‹‹–‡†–‘–Š‡ƒ‘—–…‡”–‹ϐ‹‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›Ǥ
ƒ’‹–ƒŽš’‡†‹–—”‡ǣ›…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹…—””‡†„›–Š‡ƒ••‡••‡‡ǡ™‹–Š‹͵›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡
…‘‡…‡‡–‘ˆ–Š‡ „—•‹‡••™‘—Ž† „‡ †‡‡‡†–‘ Šƒ˜‡ „‡‡ ‹…—””‡† ‹ –Š‡ ›‡ƒ” ‹ ™Š‹…Š –Š‡ „—•‹‡••™ƒ•
…‘‡…‡†ƒ†™‹ŽŽ–Š‡”‡ˆ‘”‡”ƒˆ‘”†‡†—…–‹‘‹–Š‡›‡ƒ”‘ˆ…‘‡…‡‡–‘ˆ„—•‹‡••ǡ‹ˆ—ŽŽ
…ƒ•‡•—…Š‡š’‡†‹–—”‡…ƒ‘–„‡ƒ„•‘”„‡†„›„—•‹‡••’”‘ϐ‹–•‹ƒ››‡ƒ”ǡ•—…Š†‡ϐ‹…‹‡…›…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†
‹†‡ϐ‹‹–‡Ž›—–‹Ž‹–‹•ˆ—ŽŽ›ƒ„•‘”„‡†Ȁ…‘•—‡†
 ʹͲͶ Lesson 4 Ȉ EP-TL

Ȍ‡†—…–‹‘‘ˆ‡š’‡†‹–—”‡‹…—””‡†‘”‡•‡ƒ”…Š…ƒ””‹‡†‘„›Š‹”†ƒ”–›
…ƒ•‡–Š‡”‡•‡ƒ”…Š‹•…‘†—…–‡†„›ƒ–Š‹”†’ƒ”–›ǡƒ†–Š‡’ƒ›‡–‹•ƒ†‡„›–Š‡ƒ••‡••‡‡ˆ‘”…‘†—…–‹‰–Š‡
”‡•‡ƒ”…Šǡ–Š‡ƒŽŽ‘™ƒ„‹Ž‹–›‹•ƒ•—†‡”ǣ
ƒȌ …ƒ•‡–Š‡ƒ‘—–‹•’ƒ‹†–‘ƒ…‘’ƒ›ˆ‘”•…‹‡–‹ϐ‹…”‡•‡ƒ”…ŠǡͳͲͲΨ‘ˆ•—…Š‡š’‡†‹–—”‡‹•ƒŽŽ‘™ƒ„Ž‡ǤŠ‹•
†‡†—…–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‘Ž›‹ˆ–Š‡…‘’ƒ›‹•ƒ†‹ƒ…‘’ƒ›ƒ†Šƒ•ƒ•‹–ǯ•ƒ‹‘„Œ‡…–ǡ•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š
ƒ††‡˜‡Ž‘’‡–Ǥ
„Ȍ  …ƒ•‡ –Š‡ ƒ‘—– ‹• ’ƒ‹† –‘ ƒ —‹˜‡”•‹–›ǡ …‘ŽŽ‡‰‡ ‘” ”‡•‡ƒ”…Š ƒ••‘…‹ƒ–‹‘ ˆ‘” •‘…‹ƒŽ •…‹‡…‡ ‘” •–ƒ–‹•–‹…ƒŽ
”‡•‡ƒ”…Šǡ ͳͲͲΨ ‘ˆ •—…Š ‡š’‡†‹–—”‡ ‹• ƒŽŽ‘™ƒ„Ž‡Ǥ Š‡ †‡†—…–‹‘ ‹• ƒŽŽ‘™ƒ„Ž‡ ‘Ž› ‹ˆ –Š‡ ’ƒ›‡– ‹• –‘ ƒ
ƒ’’”‘˜‡†‹•–‹–—–‹‘ƒ†•—…Š†‡†—…–‹‘…ƒ‘–„‡†‡‹‡†Žƒ–‡”ǡ•—„•‡“—‡––‘•—…Š’ƒ›‡–•ǡ‡”‡Ž›‘–Š‡
‰”‘—†•ǡ–Šƒ––Š‡ƒ’’”‘˜ƒŽ•‘‰”ƒ–‡†–‘–Š‡‹•–‹–—–‹‘‹•™‹–Š†”ƒ™Ǥ
…Ȍ  …ƒ•‡ –Š‡ ƒ‘—– ‹• ’ƒ‹† –‘ ƒ ƒ–‹‘ƒŽ ƒ„‘”ƒ–‘”› Ȁ ǡ ͳͲͲΨ ‘ˆ –Š‡ ‡š’‡†‹–—”‡ …ƒ „‡ …Žƒ‹‡† ƒ• ƒ
†‡†—…–‹‘Ǥƒ–‹‘ƒŽƒ„‘”ƒ–‘”›‹•ƒ•…‹‡–‹ϐ‹…Žƒ„‘”ƒ–‘”›ˆ—…–‹‘‹‰ƒ––Š‡ƒ–‹‘ƒŽŽ‡˜‡Žǡ—†‡”–Š‡ƒ„‹–
‘ˆ†‹ƒ‘—…‹Ž‘ˆ‰”‹…—Ž–—”ƒŽ‡†‹…ƒŽ…‹‡–‹ϐ‹…‡•‡ƒ”…Šǡ–Š‡‡ˆ‡…‡‡•‡ƒ”…Šƒ†‡˜‡Ž‘’‡–
”‰ƒ‹•ƒ–‹‘ȋȌǡ–Š‡‡’ƒ”–‡–‘ˆ–‘‹…‡”‰›Ȁ‹‘Ǧ–‡…Š‘Ž‘‰›ƒ”‡‹…Ž—†‡†Ǥ
†Ȍ …ƒ•‡–Š‡ƒ‘—–‹•’ƒ‹†–‘ƒ—‹˜‡”•‹–›ǡ…‘ŽŽ‡‰‡‘””‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘ˆ‘”•…‹‡–‹ϐ‹…”‡•‡ƒ”…ŠǡͳͲͲΨ‘ˆ•—…Š
‡š’‡†‹–—”‡‹•ƒŽŽ‘™ƒ„Ž‡ǤŠ‡’ƒ›‡–•ƒ†‡–‘•—…Š‹•–‹–—–‹‘•™‘—Ž†„‡ƒŽŽ‘™ƒ„Ž‡‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”
•—…Š ”‡•‡ƒ”…Š ‹• ”‡Žƒ–‡† –‘ –Š‡ ƒ••‡••‡‡ǯ• „—•‹‡•• ‘” ‘– ƒ† ‹””‡•’‡…–‹˜‡ ‘ˆ ™Š‡–Š‡” –Š‡ ‡š’‡†‹–—”‡ ‹•
”‡˜‡—‡‘”…ƒ’‹–ƒŽ‹ƒ–—”‡Ǥ
‡Ȍ Š‡”‡ƒ…‘’ƒ›‹•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ„‹‘Ǧ–‡…Š‘Ž‘‰›‘”‹–Š‡„—•‹‡••‘ˆƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘
‘ˆƒ›ƒ”–‹…Ž‡Ȁ–Š‹‰ǡ‘–„‡‹‰‘‡™Š‹…Š‹••’‡…‹ϐ‹‡†‹–Š‡‡Ž‡˜‡–Š•…Š‡†—Ž‡ǡ‹…—”•ƒ›‡š’‡†‹–—”‡‘
•…‹‡–‹ϐ‹… ”‡•‡ƒ”…Šǡ  ‹ǦŠ‘—•‡ ”‡•‡ƒ”…Š Ƭ †‡˜‡Ž‘’‡– ˆƒ…‹Ž‹–› ƒ• ƒ› „‡ ƒ’’”‘˜‡† „› –Š‡ ’”‡•…”‹„‡†
ƒ—–Š‘”‹–›ǡƒ™‡‹‰Š–‡††‡†—…–‹‘‘ˆͳͲͲΨ‹•ƒŽŽ‘™ƒ„Ž‡‹–Š‡”‡˜‹‘—•‡ƒ”Ǥ
‘†‡†—…–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‹…ƒ•‡‘ˆƒ›‡š’‡†‹–—”‡–Šƒ–‹•–‘™ƒ”†•ƒ…“—‹•‹–‹‘‘ˆŽƒ†Ǥ
š’‡†‹–—”‡ ‹ …ƒ•‡ ‘ˆ †”—‰• ƒ† ’Šƒ”ƒ…‡—–‹…ƒŽ• •ŠƒŽŽ ‹…Ž—†‡ –Š‡ ‡š’‡†‹–—”‡ ‘ˆ …Ž‹‹…ƒŽ †”—‰ –”‹ƒŽǡ ‘„–ƒ‹‹‰
ƒ’’”‘˜ƒŽ•ˆ”‘ƒ›•–ƒ–‡”‡‰—Žƒ–‘”›ƒ—–Š‘”‹–›ǡƒ†ϐ‹Ž‹‰ƒƒ’’Ž‹…ƒ–‹‘—†‡”–Š‡ƒ–‡–•…–ǡͳͻ͹ͲǤ
”‘˜‹†‡†–Šƒ–‡˜‡”›‘–‹ϐ‹…ƒ–‹‘‘ƒ……‘—–‘ˆ’ƒ›‡––‘‘—–•‹†‡ƒ‰‡…‹‡•—†‡”•‡…–‹‘͵ͷȋͳȌȋ‹‹Ȍǡȋ‹‹ƒȌǡȋ‹‹‹Ȍ‹
”‡•’‡…–‘ˆ–Š‡”‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘ǡ—‹˜‡”•‹–›ǡ…‘ŽŽ‡‰‡‘”‘–Š‡”‹•–‹–—–‹‘ǡ‹••—‡†‘‘”„‡ˆ‘”‡–Š‡†ƒ–‡‘™Š‹…Š
‡…–‹‘͵ͷȋͳȌŠƒ•…‘‡‹–‘ˆ‘”…‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡™‹–Š†”ƒ™—Ž‡•••—…Š‘—–•‹†‡ƒ‰‡…›ƒ‡•ƒ
‹–‹ƒ–‹‘‹•—…Šˆ‘”ƒ†ƒ‡”ǡƒ•ƒ›„‡’”‡•…”‹„‡†ǡ–‘–Š‡’”‡•…”‹„‡†‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›„›͵ͳǤͲͺǤʹͲʹͲ
ƒ†•—„Œ‡…––‘•—…Š‹–‹ƒ–‹‘–Š‡‘–‹ϐ‹…ƒ–‹‘•ŠƒŽŽ„‡˜ƒŽ‹†ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•„‡‰‹‹‰
™‹–Š–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǤȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
”‘˜‹†‡†ˆ—”–Š‡”–Š‡•‡‘—–•‹†‡ƒ‰‡…‹‡•ȋ‘‡‡Ȍ—†‡”•‡…–‹‘͵ͷȋͳȌȋ‹‹Ȍǡȋ‹‹ƒȌǡȋ‹‹‹Ȍƒ”‡‘–‡–‹–Ž‡†–‘†‡†—…–‹‘
—†‡”•‡…–‹‘͵ͷȋͳȌ—Ž‡••–Š‡›’”‡’ƒ”‡ƒ††‡Ž‹˜‡”–Š‡–ƒ–‡‡–‘ˆ†‘ƒ–‹‘”‡…‡‹’–•„›‘‡‡–‘…”‘••…Š‡…
…Žƒ‹‘ˆ†‘ƒ–‹‘„›‘‘”ˆ‘”•—…Š’‡”‹‘†ƒ•ƒ›„‡’”‡•…”‹„‡†–‘–Š‡•ƒ‹†’”‡•…”‹„‡†‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›‹
•—…Šˆ‘”ǡ˜‡”‹ϐ‹‡†‹•—…Šƒ‡”ƒ†™‹–Š‹•—…Š–‹‡ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ†ˆ—”‹•Š‡•ƒ…‡”–‹ϐ‹…ƒ–‡–‘–Š‡
†‘‘”ǡ •’‡…‹ˆ›‹‰ –Š‡ ƒ‘—– ‘ˆ †‘ƒ–‹‘ ™‹–Š‹ •—…Š –‹‡ ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ”‡…‡‹’– ‘ˆ •—Ǥ ȏ• ‡†‡† „›
‹ƒ…‡…–ǡʹͲʹͲȐ
Note:›ˆƒ‹Ž—”‡„›–Š‡‘‡‡‹’”‡’ƒ”‹‰ƒ††‡Ž‹˜‡”‹‰–Š‡–ƒ–‡‡–‘ˆ†‘ƒ–‹‘–‘–Š‡…‘‡ƒš—–Š‘”‹–›‘”
‹ˆ—”‹•Š‹‰…‡”–‹ϔ‹…ƒ–‡–‘–Š‡†‘‘”™‹–Š‹–Š‡–‹‡’”‡•…”‹„‡†•ŠƒŽŽƒ––”ƒ…–ˆ‡‡̻•Ǥ͸ͶͶˆ‘”‡˜‡”›†ƒ›†—”‹‰™Š‹…Š
–Š‡ ˆƒ‹Ž—”‡ …‘–‹—‡• —†‡” •‡…–‹‘ ͸͹ͺ
 ƒŽ‘‰ ™‹–Š –Š‡ ’‡ƒŽ–› ˆ‘” ƒ •— ‘– Ž‡•• –Šƒ •Ǥ ͷͶǡͶͶͶ ™Š‹…Š ƒ› „‡
‡š–‡†‡†–‘•ǤͷǡͶͶǡͶͶͶ—†‡”•‡…–‹‘͸ͽͷǤȏ•‡†‡†„› ‹ƒ…‡…–ǡ͸Ͷ͸ͶȐ
—ƒ”›

‡…–‹‘ š’‡†‹–—”‡…—””‡†ˆ‘”Ȁƒ›‡–ƒ†‡ ‡†—…–‹‘

͵ͷȋͳȌȋ‹Ȍ ‡˜‡—‡ š’‡†‹–—”‡ ‹…—””‡† ‘ •…‹‡–‹ϐ‹… ”‡•‡ƒ”…Š ”‡Žƒ–‡† –‘ ͳͲͲΨ
ƒ••‡••‡‡ǯ•„—•‹‡••
͵ͷȋͳȌȋ‹‹Ȍ ‡•‡ƒ”…Š••‘…‹ƒ–‹‘ˆ‘”…‹‡–‹ϐ‹…‡•‡ƒ”…Š ͳͲͲΨ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͲͷ

͵ͷȋͳȌȋ‹‹ƒȌ ƒ‹†–‘‘’ƒ›ˆ‘”…‹‡–‹ϐ‹…‡•‡ƒ”…Š ͳͲͲΨ

͵ͷȋͳȌȋ‹‹‹Ȍ ‡•‡ƒ”…Š••‘…‹ƒ–‹‘ˆ‘”‘…‹ƒŽ…‹‡…‡–ƒ–‹•–‹…ƒŽ‡•‡ƒ”…Š ͳͲͲΨ
͵ͷȋͳȌȋ‹˜Ȍ ƒ’‹–ƒŽš’‡†‹–—”‡ȋ‡š…‡’–Žƒ†ƒ…“—‹•‹–‹‘Ȍ ͳͲͲΨ
͵ͷȋʹȌ ƒ–‹‘ƒŽ ƒ„‘”ƒ–‘”› Ȁ  ˆ‘” •…‹‡–‹ϐ‹… ”‡•‡ƒ”…Š —†‡”–ƒ‡ —†‡” ƒ ͳͲͲΨ
ƒ’’”‘˜‡†”‘‰”ƒ‡
͵ͷȋʹȌ š’‡†‹–—”‡‹…—””‡†„›ƒ…‘’ƒ›‡‰ƒ‰‡†‹‹‘Ǧ–‡…Š‘Ž‘‰› ͳͲͲΨ

‘–‡ǣˆƒ†‹˜‹†—ƒŽ‘” ‘’–•–‘„‡–ƒš‡†ƒ•’‡”–Š‡‡™ƒŽ–‡”ƒ–‹˜‡”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷŠ‡Ȁ‹–™‹ŽŽ

‘–„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘‘ƒ……‘—–‘ˆ’ƒ›‡––‘‘—–•‹†‡ƒ‰‡…‹‡•ˆ‘”…‹‡–‹ϐ‹…‡•‡ƒ”…Š—†‡”•‡…–‹‘
͵ͷȋͳȌȋ‹‹Ȍǡȋ‹‹ƒȌǡȋ‹‹‹Ȍƒ†͵ͷȋʹȌǤȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ

ŽŽ—•–”ƒ–‹‘͵ǣ

Bin‘†ˆ—”‹•Š‡•–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ˆ‘”ʹͲʹͳǦʹʹǤ‘—ƒ”‡”‡“—‹”‡†–‘ƒ””‹˜‡ƒ––Š‡†‡†—…–‹‘ƒŽŽ‘™ƒ„Ž‡
—Ȁ•͵ͷˆ‘”ʹͲʹʹǦʹ͵ǡ™Š‹Ž‡…‘’—–‹‰–Š‡…‘‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dzǤ
ͳǤ ‘—– ’ƒ‹† –‘ Ȁ•  –†Ǥǡ ƒ …‘’ƒ› ”‡‰‹•–‡”‡† ‹ †‹ƒǡ ™Š‹…Š Šƒ• ƒ• ‹–ǯ• ƒ‹ ‘„Œ‡…–ǡ •…‹‡–‹ϐ‹…
”‡•‡ƒ”…Šƒ††‡˜‡Ž‘’‡–ǡƒ•ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›͸ͲͲǡͲͲͲ
ʹǤ ‘—–ƒ‹†–‘—„ƒ‹ǡˆ‘”ƒƒ’’”‘˜‡†•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š’”‘‰”ƒ‡͵͹ͷǡͲͲͲ
͵Ǥ ‡˜‡—‡š’‡†‹–—”‡‘ǦŠ‘—•‡Ƭˆƒ…‹Ž‹–›ƒ•ƒ’’”‘˜‡†„›’”‡•…”‹„‡†ƒ—–Š‘”‹–›ͶͷͲǡͲͲͲ
ͶǤ ƒ’‹–ƒŽš’‡†‹–—”‡‘ǦŠ‘—•‡Ƭˆƒ…‹Ž‹–›ƒ•ƒ’’”‘˜‡†„›’”‡•…”‹„‡†ƒ—–Š‘”‹–›ͳʹǡͲͲǡͲͲͲǤŠ‹•
‹…Ž—†‡•…‘•–‘ˆƒ†ͶͷͲǡͲͲͲ
ͷǤ ‘—–’ƒ‹†–‘†‹ƒ•–‹–—–‡‘ˆ…‹‡…‡ǡƒ‰ƒŽ‘”‡ǡˆ‘”…‹‡–‹ϐ‹…‡•‡ƒ”…ŠͳͲǡͲͲǡͲͲͲ
‘Ž—–‹‘ǣ

ŽŽ‘™ƒ„Ž‡
š’‡†‹–—”‡  ‡†—…–‹‘
‡…–‹‘
‘—–’ƒ‹†–‘Ȁ•–†Ǥǡƒ…‘’ƒ›”‡‰‹•–‡”‡†
‹ †‹ƒǡ ™Š‹…Š Šƒ• ƒ• ‹–ǯ• ƒ‹ ‘„Œ‡…–ǡ •…‹‡–‹ϐ‹…
͸ǡͲͲǡͲͲͲ ͳͲͲΨ͵ͷȋͳȌȋ‹‹ƒȌ ͸ǡͲͲǡͲͲͲ
”‡•‡ƒ”…Š ƒ† †‡˜‡Ž‘’‡–ǡ ƒ• ƒ’’”‘˜‡† „› –Š‡
’”‡•…”‹„‡†ƒ—–Š‘”‹–›
‘—– ƒ‹† –‘  —„ƒ‹ǡ ˆ‘” ƒ ƒ’’”‘˜‡†
͵ǡ͹ͷǡͲͲͲ ͳͲͲΨ͵ͷȋʹȌ ͵ǡ͹ͷǡͲͲͲ
•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š’”‘‰”ƒ‡
‡˜‡—‡š’‡†‹–—”‡‘ǦŠ‘—•‡Ƭˆƒ…‹Ž‹–›ƒ•
ͶǡͷͲǡͲͲͲ ͳͲͲΨ͵ͷȋͳȌȋ‹Ȍ ͶǡͷͲǡͲͲͲ
ƒ’’”‘˜‡†„›’”‡•…”‹„‡†ƒ—–Š‘”‹–›
ƒ’‹–ƒŽ š’‡†‹–—”‡ ‘ ǦŠ‘—•‡ Ƭ ˆƒ…‹Ž‹–› ƒ•
͹ǡͷͲǡͲͲͲ ͳͲͲΨ͵ͷȋͳȌȋ‹˜Ȍ ͹ǡͷͲǡͲͲͲ
ƒ’’”‘˜‡†„›’”‡•…”‹„‡†ƒ—–Š‘”‹–›
‘—–’ƒ‹†–‘†‹ƒ•–‹–—–‡‘ˆ…‹‡…‡ǡƒ‰ƒŽ‘”‡
ͳͲǡͲͲǡͲͲͲ ͳͲͲΨ͵ͷȋͳȌȋ‹‹Ȍ ͳͲǡͲͲǡͲͲͲ
ˆ‘”…‹‡–‹ϐ‹…‡•‡ƒ”…Š
‘–ƒŽ ͵ͳǡ͹ͷǡͲͲͲ ͵ͳǡ͹ͷǡͲͲͲ

‘”–‹œƒ–‹‘‘ˆ’‡…–”— ‡‡•ˆ‘”—”…Šƒ•‡‘ˆ’‡…–”—ȏ‡…–‹‘͵ͷȐ
‡™ •‡…–‹‘ ͵ͷ ‹• ‹•‡”–‡† –‘ ’”‘˜‹†‡ ƒ‘”–‹œƒ–‹‘ ‘ˆ ƒ‘—– ’ƒ‹† ‘ –Š‡ ƒ…“—‹•‹–‹‘ ‘ˆ ƒ› ”‹‰Š– –‘ —•‡
•’‡…–”—ˆ‘”–‡Ž‡…‘—‹…ƒ–‹‘•‡”˜‹…‡•„›’ƒ›‹‰•’‡…–”—ˆ‡‡•ǤŠ‡•‡…–‹‘’”‘˜‹†‡•ǣ
‹Ǥ ›…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹…—””‡†ƒ†ƒ…–—ƒŽŽ›’ƒ‹†„›–Š‡ƒ••‡••‡‡‘ƒ…“—‹•‹–‹‘‘ˆƒ›”‹‰Š––‘—•‡•’‡…–”—
ˆ‘”‡Ž‡…‘•‡”˜‹…‡•„›’ƒ›‹‰•’‡…–”—ˆ‡‡™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‹‡“—ƒŽ‹•–ƒŽ‡–•Ǥ‡†—…–‹‘™‹ŽŽ
 ʹͲ͸ Lesson 4 Ȉ EP-TL

•–ƒ”–ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š’ƒ›‡–‹•ƒ†‡ȋ‘”–Š‡›‡ƒ”‘ˆ…‘‡…‡‡–‘ˆ„—•‹‡••ǡ™Š‹…Š‡˜‡”‹•Žƒ–‡”Ȍ
ƒ† ‡†‹‰ ™‹–Š –Š‡ ›‡ƒ” ‹ ™Š‹…Š •’‡…–”— …‘‡• –‘ ƒ ‡†ǡ ‹””‡•’‡…–‹˜‡ ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š
Ž‹ƒ„‹Ž‹–›ˆ‘”‡š’‡†‹–—”‡™ƒ•‹…—””‡†ƒ……‘”†‹‰–‘–Š‡‡–Š‘†‘ˆƒ……‘—–‹‰”‡‰—Žƒ”Ž›ˆ‘ŽŽ‘™‡†„›ƒ••‡••‡‡
‘”’ƒ›ƒ„Ž‡‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
‹‹Ǥ Š‡”‡ –Š‡ •’‡…–”— ‹• –”ƒ•ˆ‡””‡† ƒ† –Š‡ ’”‘…‡‡†• ‘ˆ –”ƒ•ˆ‡” ƒ”‡ Ž‡•• –Šƒ –Š‡ ‡š’‡†‹–—”‡ ”‡ƒ‹‹‰
—ƒŽŽ‘™‡†ǡƒ†‡†—…–‹‘‡“—ƒŽ–‘–Š‡‡š’‡†‹–—”‡”‡ƒ‹‹‰—ƒŽŽ‘™‡†ƒ•”‡†—…‡†„›–Š‡’”‘…‡‡†•‘ˆ–”ƒ•ˆ‡”ǡ
•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹–Š‡›‡ƒ”‘ˆ–”ƒ•ˆ‡”‘ˆ•’‡…–”—Ǥ
‹‹‹Ǥ ˆ•’‡…–”—‹•–”ƒ•ˆ‡””‡†ƒ†’”‘…‡‡†•‘ˆ–”ƒ•ˆ‡”‡š…‡‡†–Š‡ƒ‘—–‘ˆ‡š’‡†‹–—”‡”‡ƒ‹‹‰—ƒŽŽ‘™‡†ǡ
–Š‡‡š…‡••ƒ‘—–ȋ–‘–Š‡‡š–‡–‹–†‘‡•‘–‡š…‡‡††‡†—…–‹‘…Žƒ‹‡†—Ȁ•͵ͷȌ•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
ƒ•’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š•’‡…–”—Šƒ•„‡‡–”ƒ•ˆ‡””‡†Ǥ
‹˜Ǥ ƒŽŽ‘™‡†‡š’‡†‹–—”‡‹ƒ…ƒ•‡™Š‡”‡ƒ’ƒ”–‘ˆ•’‡…–”—‹•–”ƒ•ˆ‡””‡†™‘—Ž†„‡ƒ‘”–‹•‡†Ǥ
˜Ǥ Š‡”‡–Š‡†‡†—…–‹‘Šƒ•„‡‡…Žƒ‹‡†ƒ†‰”ƒ–‡†–‘–Š‡ƒ••‡••‡‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•
•‡…–‹‘ ƒ†ǡ •—„•‡“—‡–Ž›ǡ –Š‡”‡ ‹• ˆƒ‹Ž—”‡ –‘ …‘’Ž› ™‹–Š ƒ› ‘ˆ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• •‡…–‹‘ǡ –Š‡ –Š‡
†‡†—…–‹‘•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡™”‘‰Ž›ƒŽŽ‘™‡†Ǥ•—…Š…ƒ•‡ǡ–Š‡ƒ••‡••‹‰‘ˆϐ‹…‡”…ƒ”‡Ǧ…‘’—–‡
–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ȋ‹™Š‹…Š†‡†—…–‹‘™ƒ•…Žƒ‹‡†Ȍƒ†ƒ‡‡…‡••ƒ”›
”‡…–‹ϐ‹…ƒ–‹‘Ǥ—…Š”‡…–‹ϐ‹…ƒ–‹‘…ƒ„‡ƒ†‡™‹–Š‹Ͷ›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Šˆƒ‹Ž—”‡
–ƒ‡•’Žƒ…‡Ǥ
˜‹Ǥ †‡” –Š‡ •…Š‡‡ ‘ˆ ƒƒŽ‰ƒƒ–‹‘ǡ ‹ˆ –Š‡ ƒƒŽ‰ƒƒ–‹‰ …‘’ƒ› •‡ŽŽ• ‘” –”ƒ•ˆ‡”• –Š‡ •’‡…–”— –‘ ƒ
ƒƒŽ‰ƒƒ–‡† …‘’ƒ›ǡ „‡‹‰ ƒ †‹ƒ …‘’ƒ›ǡ –Š‡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• •‡…–‹‘ •ŠƒŽŽ ƒ’’Ž› –Š‡
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ƒ•–Š‡›™‘—Ž†Šƒ˜‡ƒ’’Ž‹‡†–‘–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‹ˆŽƒ–‡”Šƒ†‘––”ƒ•ˆ‡””‡†
–Š‡•’‡…–”—Ǥ‹‹Žƒ””—Ž‡™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡‹…ƒ•‡‘ˆ†‡‡”‰‡”Ǥ
Š‡”‡ǡ‹ƒ’”‡˜‹‘—•›‡ƒ”ǡƒ›†‡†—…–‹‘Šƒ•„‡‡…Žƒ‹‡†ƒ†‰”ƒ–‡†–‘–Š‡ƒ••‡••‡‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌǡƒ†ǡ
•—„•‡“—‡–Ž›ǡ–Š‡”‡‹•ˆƒ‹Ž—”‡–‘…‘’Ž›™‹–Šƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ǡ–Š‡ǡǦ
ȋƒȌ –Š‡†‡†—…–‹‘•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡™”‘‰Ž›ƒŽŽ‘™‡†Ǣ
ȋ„Ȍ –Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ǡ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‹•…–ǡ”‡Ǧ…‘’—–‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡
ƒ••‡••‡‡ˆ‘”–Š‡•ƒ‹†’”‡˜‹‘—•›‡ƒ”ƒ†ƒ‡–Š‡‡…‡••ƒ”›”‡…–‹ϐ‹…ƒ–‹‘Ǣ
ȋ…Ȍ –Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͷͶ•ŠƒŽŽǡ•‘ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›ƒ†–Š‡’‡”‹‘†‘ˆˆ‘—”›‡ƒ”••’‡…‹ϐ‹‡†‹•—„•‡…–‹‘
ȋ͹Ȍ‘ˆ–Šƒ–•‡…–‹‘„‡‹‰”‡…‘‡†ˆ”‘–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ˆƒ‹Ž—”‡–‘…‘’Ž›™‹–Š–Š‡
’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘–ƒ‡•’Žƒ…‡Ǥ
š’‡†‹–—”‡‘‡Ž‡…‘‹…‡…‡ȏ‡…–‹‘͵ͷȐ
‡†—…–‹‘‘ˆƒ’‹–ƒŽš’‡†‹–—”‡ǣŠ‡”‡ƒ›…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹•‹…—””‡†„›–Š‡ƒ••‡••‡‡ˆ‘”ƒ…“—‹”‹‰ƒ›
”‹‰Š––‘‘’‡”ƒ–‡–‡Ž‡…‘—‹…ƒ–‹‘••‡”˜‹…‡•ƒ†ˆ‘”™Š‹…Š’ƒ›‡–Šƒ•ƒ…–—ƒŽŽ›„‡‡ƒ†‡–‘‘„–ƒ‹ƒŽ‹…‡…‡ǡƒ
†‡†—…–‹‘™‹ŽŽ„‡ƒŽŽ‘™‡†‹‡“—ƒŽ‹•–ƒŽ‡–•‘˜‡”–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡Ž‹…‡…‡”‡ƒ‹•‹ˆ‘”…‡ǡ•—„Œ‡…––‘–Š‡
ˆ‘ŽŽ‘™‹‰ǣ
ȋƒȌ ‡‡• ’ƒ‹† „‡ˆ‘”‡ …‘‡…‡‡– ‘ˆ „—•‹‡••ǣ ˆ –Š‡ ˆ‡‡ ‹• ’ƒ‹† ˆ‘” ƒ…“—‹”‹‰ ƒ› ”‹‰Š– –‘ ‘’‡”ƒ–‡
–‡Ž‡…‘—‹…ƒ–‹‘••‡”˜‹…‡•„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆ•—…Š„—•‹‡••ǡ–Š‡†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”
–Š‡’”‡˜‹‘—•›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š„—•‹‡••‹•…‘‡…‡†Ǥ
ȋ„Ȍ ‡‡•’ƒ‹†ƒˆ–‡”…‘‡…‡‡–‘ˆ„—•‹‡••ǣˆ–Š‡ˆ‡‡‹•’ƒ‹†ˆ‘”ƒ…“—‹”‹‰•—…Š”‹‰Š–•ƒˆ–‡”–Š‡…‘‡…‡‡–
‘ˆ•—…Š„—•‹‡••–Š‡†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡’”‡˜‹‘—•›‡ƒ”‹
™Š‹…Š–Š‡Ž‹…‡•‡ˆ‡‡‹•ƒ…–—ƒŽŽ›’ƒ‹†ȋ‹””‡•’‡…–‹˜‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡Ž‹ƒ„‹Ž‹–›ˆ‘”–Š‡‡š’‡†‹–—”‡
‹•‹…—””‡†ȌǤ
”‘ϐ‹–ȀŽ‘••‘ƒŽ‡Ǧ
Ȉ ”ƒ•ˆ‡”‘ˆ‹…‡•‡ǣŠ‡”‡–Š‡Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†ƒ†’”‘…‡‡†•‘ˆ–”ƒ•ˆ‡”ȋ•ƒŽ‡’”‘…‡‡†•Ȍƒ”‡Ž‡••–Šƒ
–Š‡ƒ‘—–‘ˆ‡š’‡†‹–—”‡‹…—””‡†”‡ƒ‹‹‰—ƒŽŽ‘™‡†ǣ
ȋ‹Ȍ Š‘Ž‡‹…‡•‡–”ƒ•ˆ‡””‡†ǣŠ‡”‡™Š‘Ž‡‘ˆ–Š‡Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†‹ƒ’”‡˜‹‘—•›‡ƒ”Ǥ‡†—…–‹‘ƒ•
‰‹˜‡„‡Ž‘™•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͲ͹

 š’‡†‹–—”‡”‡ƒ‹‹‰—ƒŽŽ‘™‡†Ž‡•••ƒŽ‡’”‘…‡‡†•Ǥ
ȋ‹‹Ȍ ƒ”–‘ˆ–Š‡Ž‹…‡•‡–”ƒ•ˆ‡””‡†ǣŠ‡”‡’ƒ”–‘ˆ–Š‡Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†‹ƒ’”‡˜‹‘—•›‡ƒ”Ǥ‡†—…–‹‘ƒ•
‰‹˜‡„‡Ž‘™•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹–Š‡„ƒŽƒ…‡—„‡”‘ˆ”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•Ǥ
 ȋ‡š’‡†‹–—”‡”‡ƒ‹‹‰—ƒŽŽ‘™‡†Ž‡•••ƒŽ‡’”‘…‡‡†•Ȍ†‹˜‹†‡†„›„ƒŽƒ…‡—„‡”‘ˆ”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•ǡ
‹Ǥ‡Ǥǡ–Š‡’”‡˜‹‘—•›‡ƒ”•‘–‡š’‹”‡†ƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡›‡ƒ”‘ˆ–”ƒ•ˆ‡”Ǥ
Ȉ Š‡”‡–Š‡Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†ƒ†–Š‡’”‘…‡‡†•‘ˆ–”ƒ•ˆ‡”ȋ•ƒŽ‡’”‘…‡‡†•Ȍ‡š…‡‡†–Š‡ƒ‘—–‘ˆ‡š’‡†‹–—”‡
‹…—””‡†”‡ƒ‹‹‰—ƒŽŽ‘™‡†Ǥ
 ƒŽ‡’”‘…‡‡†•Ž‡••‡š’‡†‹–—”‡”‡ƒ‹‹‰—ƒŽŽ‘™‡†•—„Œ‡…––‘†‡†—…–‹‘•ƒŽ”‡ƒ†›ƒŽŽ‘™‡†•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡
–‘ ‹…‘‡ –ƒš ƒ• ’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ –Š‡ „—•‹‡•• ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š Ž‹…‡…‡ ‹• –”ƒ•ˆ‡””‡†Ǥ
‘•‡“—‡–Ž›ǡ‘ˆ—”–Š‡”†‡†—…–‹‘‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…ŠŽ‹…‡…‡‹•–”ƒ•ˆ‡””‡†‘”‹ƒ›•—„•‡“—‡–
’”‡˜‹‘—•›‡ƒ”•‹•ƒŽŽ‘™‡†Ǥ
 Š‡”‡Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†‹ƒ’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡„—•‹‡••‹•‘Ž‘‰‡”‹‡š‹•–‡…‡ǡ–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽƒ’’Ž›ƒ•‹ˆ–Š‡„—•‹‡••‹•‹‡š‹•–‡…‡‹–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
Ȉ ”ƒ•ˆ‡” ‹ •…Š‡‡ ‘ˆ ƒŽ‰ƒƒ–‹‘ǣ Š‡”‡ —†‡” ƒ •…Š‡‡ ‘ˆ ƒƒŽ‰ƒƒ–‹‘ ƒ –‡Ž‡…‘ Ž‹…‡…‡ ‹•
–”ƒ•ˆ‡””‡†„›–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ȋ„‡‹‰ƒ†‹ƒ…‘’ƒ›Ȍǡ–Š‡
†‡†—…–‹‘™‹ŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‹••‡…–‹‘–‘–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ǡ‹•–‡ƒ†–Š‡’”‘˜‹•‹‘•‘ˆ
–Š‹•‡…–‹‘ȋ͵ͷȌ™‹ŽŽ…‘–‹—‡–‘ƒ’’Ž›–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ƒ•–Š‡›™‘—Ž†Šƒ˜‡ƒ’’Ž‹‡†–‘–Š‡
ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‹ˆ–Š‡Žƒ––‡”Šƒ†‘––”ƒ•ˆ‡””‡†–Š‡Ž‹…‡…‡Ǥ
Ȉ ”ƒ•ˆ‡”‹…ƒ•‡‘ˆ‡‡”‰‡”ǣ‹‹Žƒ”Ž›‹ƒ•…Š‡‡‘ˆ†‡‡”‰‡”ƒ–‡Ž‡…‘Ž‹…‡…‡‹•–”ƒ•ˆ‡””‡†„›–Š‡
†‡‡”‰‡†…‘’ƒ›–‘–Š‡”‡•—Ž–‹‰…‘’ƒ›ǡ–Š‡†‡†—…–‹‘™‹ŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡†‡‡”‰‡†…‘’ƒ›
ƒ†™‹ŽŽ‹•–‡ƒ†ƒ’’Ž›–‘–Š‡”‡•—Ž–‹‰…‘’ƒ›ƒ•–Š‡›™‘—Ž†Šƒ˜‡ƒ’’Ž‹‡†–‘–Š‡†‡‡”‰‡†…‘’ƒ›‹ˆ–Š‡
Žƒ––‡”Šƒ†‘––”ƒ•ˆ‡””‡†–Š‡Ž‹…‡…‡Ǥ
—”–Š‡”™Š‡”‡ƒ†‡†—…–‹‘ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”‹•…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†—†‡”‡…–‹‘͵ͷǡ–Š‡‘†‡†—…–‹‘
—†‡”‡…–‹‘͵ʹȋͳȌ•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”–Š‡•ƒ‡‘”ƒ›•—„•‡“—‡–’”‡˜‹‘—•›‡ƒ”Ǥ

š’‡†‹–—”‡‘ˆ…ƒ’‹–ƒŽƒ–—”‡‹…—””‡†‹”‡•’‡…–‘ˆ’‡…‹ϐ‹‡†—•‹‡••ȏ‡…–‹‘͵ͷȐ
 ƒ••‡••‡‡ •ŠƒŽŽ ȋ‹ˆ Š‡ ‘’–•Ȍ „‡ ƒŽŽ‘™‡† ƒ †‡†—…–‹‘ ‘ˆ …ƒ’‹–ƒŽ ƒ–—”‡ ‡š’‡†‹–—”‡ ‹…—””‡† ˆ‘” ƒ› •’‡…‹ϐ‹‡†
„—•‹‡••…ƒ””‹‡†‘„›Š‹†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š‡š’‡†‹–—”‡‹•‹…—””‡†„›Š‹ǤŠ‹••‡…–‹‘
–ƒŽ•ƒ„‘—–‹˜‡•–‡–Ž‹‡†‹…‡–‹˜‡•ˆ‘”•’‡…‹ϐ‹‡†„—•‹‡••‡•ƒ•—†‡”ǣ
Ȍ ‡––‹‰—’Ƭ‘’‡”ƒ–‹‰…‘Ž†…Šƒ‹ˆƒ…‹Ž‹–‹‡•ˆ‘”•’‡…‹ϐ‹‡†’”‘†—…–•
Ȍ ‡––‹‰—’Ƭ‘’‡”ƒ–‹‰™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–‹‡•ˆ‘”ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡
Ȍ ƒ›‹‰ƒ†‘’‡”ƒ–‹‰ƒ…”‘••Ǧ…‘—–”›ƒ–—”ƒŽ‰ƒ•‘”…”—†‡‘”’‡–”‘Ž‡—‘‹Ž’‹’‡Ž‹‡‡–™‘”ˆ‘”•–‘”ƒ‰‡ƒ†
†‹•–”‹„—–‹‘ǡƒ•ƒ’ƒ”–‘ˆ–Š‡‡–™‘”
Ȍ —‹Ž†‹‰ƒ†‘’‡”ƒ–‹‰ƒʹǦ•–ƒ”Š‘–‡Ž‘”ƒ„‘˜‡ǡƒ›™Š‡”‡‹†‹ƒ
Ȍ —‹Ž†‹‰ƒ†‘’‡”ƒ–‹‰ƒŠ‘•’‹–ƒŽ™‹–ŠεͳͲͲ„‡†•ǡƒ›™Š‡”‡‹†‹ƒ
Ȍ ‡˜‡Ž‘’‹‰Ƭ„—‹Ž†‹‰ƒŠ‘—•‹‰’”‘Œ‡…–—†‡”ƒ•…Š‡‡ˆ‘”•Ž—”‡†‡˜‡Ž‘’‡–Ȁƒˆˆ‘”†ƒ„Ž‡Š‘—•‹‰

Ȍ ”‘†—…–‹‘‘ˆˆ‡”–‹Ž‹œ‡”•‹†‹ƒ
Ȍ ‡––‹‰—’ƒ†‘’‡”ƒ–‹‰ƒŽƒ†‘–ƒ‹‡”‡’‘–ƒ‘–ƒ‹‡” ”‡‹‰Š––ƒ–‹‘ǡ—†‡”—•–‘•…–ǡͳͻ͸ʹ
Ȍ ‡‡Ǧ‡‡’‹‰ƒ†’”‘†—…–‹‘‘ˆŠ‘‡›ƒ†„‡‡•™ƒš
Ȍ ‡––‹‰—’ƒ†‘’‡”ƒ–‹‰ƒ™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–›ˆ‘”•–‘”ƒ‰‡‘ˆ•—‰ƒ”
Ȍ ƒ›‹‰ƒ†‘’‡”ƒ–‹‰ƒ•Ž—””›’‹’‡Ž‹‡ˆ‘”–”ƒ•’‘”–ƒ–‹‘‘ˆ‹”‘Ǧ‘”‡
Ȍ ‡––‹‰—’ƒ†‘’‡”ƒ–‹‰ƒ•‡‹Ǧ…‘†—…–‘”™ƒˆ‡”ˆƒ„”‹…ƒ–‹‘ƒ—ˆƒ…–—”‹‰—‹–
Ȍ ‡˜‡Ž‘’‹‰Ȁƒ‹–ƒ‹‹‰Ƭ’‡”ƒ–‹‰Ȁ‡˜‡Ž‘’‹‰Ƭƒ‹–ƒ‹‹‰Ƭ’‡”ƒ–‹‰ƒ‡™‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›
‹†‹ƒ
 ʹͲͺ Lesson 4 Ȉ EP-TL

ƒ’‹–ƒŽš’‡†‹–—”‡‡†—…–‹‘ǣͳͲͲΨ‘ˆ–Š‡…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹…—””‡††—”‹‰–Š‡”‡˜‹‘—•‡ƒ”ǡ™Š‘ŽŽ›ƒ†
‡š…Ž—•‹˜‡Ž›ˆ‘”–Š‡ƒ„‘˜‡„—•‹‡••‡•™‘—Ž†„‡ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ†‡†—…–‹‘Ǥ
š’‡†‹–—”‡‹…—””‡†’”‹‘”–‘…‘‡…‡‡–‘ˆ„—•‹‡••ǣŠ‡‡š’‡†‹–—”‡‹…—””‡†’”‹‘”–‘–Š‡…‘‡…‡‡–
‘ˆ–Š‡„—•‹‡••ǡ™‘—Ž†„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹–Š‡›‡ƒ”‘ˆ…‘‡…‡‡–‘ˆ„—•‹‡••ǡƒ†•Š‘—Ž†ƒŽ•‘„‡
…ƒ’‹–ƒŽ‹•‡†‹–Š‡„‘‘•‘ˆ–Š‡ƒ••‡••‡‡‘–Š‡…‘‡…‡‡–‘ˆ‘’‡”ƒ–‹‘•Ǥ
‡–‘ˆˆ‘ˆ‘••‡•ǣŠ‡Ž‘••ˆ”‘•’‡…‹ϐ‹‡†„—•‹‡••‡•…ƒ„‡•‡–‘ˆˆ‘Ž›ƒ‰ƒ‹•–’”‘ϐ‹–•‘ˆ•’‡…‹ϐ‹‡†„—•‹‡••‡•„—–
…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†‹†‡ϐ‹‹–‡Ž›ˆ‘”•‡–‘ˆˆƒ‰ƒ‹•–‘‡‘”‘”‡•’‡…‹ϐ‹‡†„—•‹‡••‡•Ǥ
‡”‹‘†‘ˆ‡†—…–‹‘ǣŠ‡ƒ„‘˜‡†‡†—…–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‘Ž›‹ˆƒ……‘—–•‘ˆ–Š‡ƒ••‡••‡‡ƒ”‡ƒ—†‹–‡†„›ƒŠƒ”–‡”‡†
……‘—–ƒ– ƒ† –Šƒ– ƒ› ƒ••‡– ‹ ”‡•’‡…– ‘ˆ ™Š‹…Š –Š‡ †‡†—…–‹‘ ‹• …Žƒ‹‡†ǡ …ƒ „‡ —•‡† ‘Ž› ˆ‘” –Š‡ •’‡…‹ϐ‹‡†
„—•‹‡••‡•ˆ‘”ƒ’‡”‹‘†‘ˆͺ›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡‹™Š‹…Š–Š‡ƒ••‡–™ƒ•ƒ…“—‹”‡†Ȁ…‘•–”—…–‡†Ǥ

š…‡’–‹‘•
Ȉ š’‡†‹–—”‡‘ƒ…“—‹•‹–‹‘‘ˆŽƒ†‰‘‘†™‹ŽŽ™‹ŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘
Ȉ ›‡š’‡†‹–—”‡™Š‡”‡–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ’ƒ›‡–•ƒ†‡–‘ƒ’‡”•‘‡š…‡‡†‹‰ͳͲǡͲͲͲ’‡”†ƒ›ǡ‘–Š‡”™‹•‡
–Šƒ„›ƒ……‘—–’ƒ›‡‡…Š‡“—‡ȀȀȀ‘”•—…Š‘–Š‡”‡Ž‡…–”‘‹…‘†‡•ƒ•’”‡•…”‹„‡†—†‡”—Ž‡͸
™‘—Ž†‘–„‡‡Ž‹‰‹„Ž‡ˆ‘”ƒ†‡†—…–‹‘ǤŠ‡’”‡•…”‹„‡†‡Ž‡…–”‘‹…‘†‡•‹…Ž—†‡credit card, debit card, net
„ƒ‹‰ǡȋ‡†‹ƒ–‡’ƒ›‡–‡”˜‹…‡Ȍǡȋ‹ϔ‹‡†ƒ›‡––‡”ˆƒ…‡Ȍǡ
ȋ‡ƒŽ‹‡
”‘••
‡––Ž‡‡–Ȍǡ ȋƒ–‹‘ƒŽŽ‡…–”‘‹… —†•”ƒ•ˆ‡”Ȍǡƒ†ȋŠƒ”ƒ––‡”ˆƒ…‡ˆ‘”‘‡›Ȍƒ†Šƒ”
ƒ›ȏ‘–‹ϔ‹…ƒ–‹‘‘Ǥ;Ȁ͸Ͷ͸Ͷ†ƒ–‡†͸ͿǤͶͷǤ͸Ͷ͸ͶȐ
Ȉ ‘†‡†—…–‹‘‹”‡•’‡…–‘ˆ–Š‡‡š’‡†‹–—”‡—†‡”•‡…–‹‘͵ͷȋͳȌ•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘–Š‡ƒ••‡••‡‡—†‡”ƒ›
‘–Š‡”•‡…–‹‘‹ƒ›’”‡˜‹‘—•›‡ƒ”‘”—†‡”–Š‹••‡…–‹‘‹ƒ›‘–Š‡”’”‡˜‹‘—•›‡ƒ”ǡ‹ˆ–Š‡†‡†—…–‹‘Šƒ•„‡‡
…Žƒ‹‡†‘”‘’–‡†„›–Š‡ƒ••‡••‡‡ƒ†ƒŽŽ‘™‡†–‘Š‹—†‡”–Š‹••‡…–‹‘Ǥȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
›ƒ••‡–‹”‡•’‡…–‘ˆ™Š‹…Šƒ†‡†—…–‹‘‹•…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†—†‡”‡…–‹‘͵ͷǡ•ŠƒŽŽ„‡—•‡†‘Ž›ˆ‘”–Š‡•’‡…‹ϐ‹‡†
„—•‹‡••ˆ‘”ƒ’‡”‹‘†‘ˆ‡‹‰Š–›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ••‡–‹•ƒ…“—‹”‡†‘”…‘•–”—…–‡†Ǥ
ˆƒ›ƒ••‡–‘™Š‹…Šƒ†‡†—…–‹‘—†‡”•‡…–‹‘͵ͷŠƒ•„‡‡ƒŽŽ‘™‡†ǡ‹•—•‡†ˆ‘”ƒ›’—”’‘•‡‘–Š‡”–Šƒ–Š‡
•’‡…‹ϐ‹‡†„—•‹‡••ǡ–Š‡–‘–ƒŽƒ‘—–‘ˆ†‡†—…–‹‘•‘…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†‹‘‡‘”‘”‡’”‡˜‹‘—•›‡ƒ”•‹”‡•’‡…–
‘ˆ•—…Šƒ••‡–ǡƒ•”‡†—…‡†„›–Š‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͵ʹ
ƒ•‹ˆ‘†‡†—…–‹‘Šƒ†„‡‡ƒŽŽ‘™‡†—†‡”•‡…–‹‘͵ͷǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡…Šƒ”‰‡ƒ„Ž‡
—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‹••‘—•‡†Ǥ
Noteǣˆƒ‹†‹˜‹†—ƒŽ‘” ‘’–•–‘„‡–ƒš‡†ƒ•’‡”–Š‡‡™ƒŽ–‡”ƒ–‹˜‡”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷŠ‡Ȁ‹–™‹ŽŽ‘–
„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘—†‡”•‡…–‹‘͵ͷǤȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
šƒ’Ž‡ǣ—’’‘•‡ƒ…‘’ƒ›’—”…Šƒ•‡†’Žƒ–ƒ†ƒ…Š‹‡”›ˆ‘”•Ǥʹ…”‘”‡•ˆ‘”ƒ•’‡…‹ϐ‹‡†„—•‹‡••ǡƒ†…Žƒ‹‡†
†‡†—…–‹‘—†‡”•‡…–‹‘͵ͷǤ‘™‡˜‡”ǡ–Š‡˜‡”›‡š–›‡ƒ”–Š‡’Žƒ–ƒ†ƒ…Š‹‡”›’—”…Šƒ•‡†™ƒ•’—––‘—•‡ˆ‘”
—•’‡…‹ϐ‹‡†„—•‹‡••Ǥ
–Š‹•…ƒ•‡ǡ•‹…‡–Š‡ƒ…Š‹‡”›Šƒ•„‡‡—•‡†ˆ‘”—•’‡…‹ϐ‹‡†„—•‹‡••ǡ–Š‡†‡†—…–‹‘…Žƒ‹‡†—†‡”•‡…–‹‘͵ͷ
™‹ŽŽ„‡†‹•ƒŽŽ‘™‡†Ǥ‘™‡˜‡”ǡ–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘–‘„‡†‹•ƒŽŽ‘™‡†™‹ŽŽ„‡”‡†—…‡†„›–Š‡†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡
‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͵ʹǤ
‡†—…–‹‘…Žƒ‹‡†—†‡”•‡…–‹‘͵ͷ‘ƒ…ƒ’‹–ƒŽƒ••‡–ǣ     •ǤʹǡͲͲǡͲͲǡͲͲͲ
‡’”‡…‹ƒ–‹‘‡Ž‹‰‹„Ž‡™‹ŽŽ„‡̷ͳͷΨǣ       •Ǥ͵ͲǡͲͲǡͲͲͲ
”‘ϐ‹–…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ•‡…–‹‘͵ͷǣ  •Ǥͳǡ͹ͲǡͲͲǡͲͲͲ
š’‡†‹–—”‡ „› ™ƒ› ‘ˆ ƒ›‡– –‘ ••‘…‹ƒ–‹‘• ƒ† •–‹–—–‹‘• ˆ‘” …ƒ””›‹‰ ‘—– —”ƒŽ
‡˜‡Ž‘’‡–”‘‰”ƒ‡•ȏ‡…–‹‘͵ͷȐ
›•—’ƒ‹†–‘ƒ”—”ƒŽ†‡˜‡Ž‘’‡–ˆ—†•‡–—’ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ†–‘–Š‡ƒ–‹‘ƒŽ”„ƒ
‘˜‡”–›”ƒ†‹…ƒ–‹‘ —†•‹‹Žƒ”Ž›•‡–—’ƒ†‘–‹ϐ‹‡†“—ƒŽ‹ϐ‹‡•ˆ‘”†‡†—…–‹‘‘ˆ—Žϐ‹Ž‡–‘ˆ…‡”–ƒ‹…‘†‹–‹‘•Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͲͻ

š’‡†‹–—”‡‘‰”‹…—Ž–—”ƒŽ‡š–‡•‹‘’”‘Œ‡…–ȏ‡…–‹‘͵ͷȐ
Š‡”‡ƒƒ••‡••‡‡‹…—”•ƒ›‡š’‡†‹–—”‡‘ƒ‰”‹…—Ž–—”ƒŽ‡š–‡•‹‘’”‘Œ‡…–‘–‹ϐ‹‡†„›–Š‡‘ƒ”†–Š‡ǡ–Š‡”‡•ŠƒŽŽ
„‡ƒŽŽ‘™‡†ƒ†‡†—…–‹‘‘ˆƒ•—‡“—ƒŽ–‘ͳͲͲΨ‘ˆ•—…Š‡š’‡†‹–—”‡Ǥ

š’‡†‹–—”‡‘•‹ŽŽ†‡˜‡Ž‘’‡–’”‘Œ‡…–ȏ‡…–‹‘͵ͷȐ
Š‡”‡ƒ…‘’ƒ›‹…—”•ƒ›‡š’‡†‹–—”‡ȋ‘–„‡‹‰‡š’‡†‹–—”‡‹–Š‡ƒ–—”‡‘ˆ…‘•–‘ˆƒ›Žƒ†‘”„—‹Ž†‹‰Ȍ‘
ƒ›•‹ŽŽ†‡˜‡Ž‘’‡–’”‘Œ‡…–‘–‹ϐ‹‡†„›–Š‡‘ƒ”†–Š‡ǡ–Š‡”‡•ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ†‡†—…–‹‘‘ˆƒ•—‡“—ƒŽ–‘ͳͲͲΨ
‘ˆ•—…Š‡š’‡†‹–—”‡Ǥ

‘”–‹œƒ–‹‘‘ˆ”‡Ž‹‹ƒ”›š’‡•‡•ȏ‡…–‹‘͵ͷȐ
Ž‹‰‹„Ž‡ ••‡••‡‡ǣ †‡” ‡…–‹‘ ͵ͷǡ †‹ƒ …‘’ƒ‹‡• ƒ† ‘–Š‡” ‘Ǧ…‘”’‘”ƒ–‡ –ƒš’ƒ›‡”• ”‡•‹†‡– ‹ †‹ƒ
™‘—Ž† „‡ ‡–‹–Ž‡† –‘ ƒ‘”–‹•ƒ–‹‘ ‘ˆ …‡”–ƒ‹ ’”‡Ž‹‹ƒ”› ‡š’‡•‡• ‹…—””‡† „› –Š‡ ˆ‘” –Š‡ ‡•–ƒ„Ž‹•Š‡– ‘ˆ
„—•‹‡••…‘…‡”•‘”–Š‡‡š’ƒ•‹‘‘ˆ–Š‡„—•‹‡••‘ˆ‡š‹•–‹‰…‘…‡”•Ǥ
š’‡†‹–—”‡‹…—””‡†’”‹‘”‘”ƒˆ–‡”…‘‡…‡‡–‘ˆ„—•‹‡••ǣŠ‡‡š’‡†‹–—”‡™Š‹…Š“—ƒŽ‹ϐ‹‡•ˆ‘”ƒ‘”–‹•ƒ–‹‘
•Š‘—Ž†Šƒ˜‡„‡‡‹…—””‡†„›–Š‡ƒ••‡••‡‡„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆŠ‹•„—•‹‡••ǤˆǡŠ‘™‡˜‡”ǡ–Š‡‡š’‡†‹–—”‡
‹•‹…—””‡†ƒˆ–‡”–Š‡…‘‡…‡‡–‘ˆ„—•‹‡••ǡ‹–‹•‡••‡–‹ƒŽ–Šƒ––Š‡‡š’‡†‹–—”‡•Š‘—Ž†„‡‹…‘‡…–‹‘™‹–Š
–Š‡‡š–‡•‹‘‘”‡š’ƒ•‹‘‘ˆ–Š‡—†‡”–ƒ‹‰‘ˆ–Š‡ƒ••‡••‡‡‘”‹…‘‡…–‹‘™‹–Š–Š‡•‡––‹‰—’‘ˆƒ‡™—‹–„›
–Š‡ƒ••‡••‡‡Ǥ
Ž‹‰‹„Ž‡ ‡†—…–‹‘ǣ Š‡ ƒ‘—– “—ƒŽ‹ˆ›‹‰ ˆ‘” ƒ‘”–‹•ƒ–‹‘ ™‘—Ž† „‡ ƒŽŽ‘™ƒ„Ž‡ ƒ• ƒ †‡†—…–‹‘ ‹ ϐ‹˜‡ ‡“—ƒŽ
‹•–ƒŽ‡–• „‡‰‹‹‰ ™‹–Š –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡ „—•‹‡•• ‘ˆ –Š‡ ƒ••‡••‡‡ ƒ…–—ƒŽŽ› …‘‡…‡• ‘” –Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‡š–‡•‹‘‘ˆ–Š‡’”‡•‡–—†‡”–ƒ‹‰‹•…‘’Ž‡–‡†‘”–Š‡‡™—‹–…‘‡…‡•’”‘†—…–‹‘
‘”‘’‡”ƒ–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Š‡ ˆ‘ŽŽ‘™‹‰ ‡š’‡•‡• ‹…—””‡† „› –Š‡ ƒ••‡••‡‡ǡ “—ƒŽ‹ˆ› ˆ‘” ƒ‘”–‹•ƒ–‹‘ —†‡” –Š‹• •‡…–‹‘ ƒ• ’”‡Ž‹‹ƒ”›
‡š’‡•‡•ǣ
ȋ‹Ȍ š’‡•‡•‹…‘‡…–‹‘™‹–Š–Š‡’”‡’ƒ”ƒ–‹‘‘ˆˆ‡ƒ•‹„‹Ž‹–›”‡’‘”–‘”’”‘Œ‡…–”‡’‘”–Ǣ
ȋ‹‹Ȍ š’‡•‡•ˆ‘”…‘†—…–‹‰ƒ”‡–•—”˜‡›‘”ƒ›‘–Š‡”•—”˜‡›‡…‡••ƒ”›ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡
ƒ••‡••‡‡Ǣ
ȋ‹‹‹Ȍ ‡š’‡†‹–—”‡ˆ‘”‰‡––‹‰‡‰‹‡‡”‹‰•‡”˜‹…‡•”‡Žƒ–‡†–‘–Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡Ǣ
ȋ‹˜Ȍ ‡š’‡•‡•„›™ƒ›‘ˆŽ‡‰ƒŽ…Šƒ”‰‡•ˆ‘”†”ƒˆ–‹‰ƒ›ƒ‰”‡‡‡–„‡–™‡‡–Š‡ƒ••‡••‡‡ƒ†ƒ›‘–Š‡”’‡”•‘ˆ‘”
ƒ›’—”’‘•‡”‡Žƒ–‹‰–‘–Š‡•‡––‹‰—’‘”…‘†—…–‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡Ǣ
ȋ˜Ȍ ‹–Š‡…ƒ•‡‘ˆƒ…‘’ƒ›
ȋƒȌ ‡š’‡•‡• „› ™ƒ› ‘ˆ Ž‡‰ƒŽ …Šƒ”‰‡• ˆ‘” †”ƒˆ–‹‰ –Š‡ ‡‘”ƒ†— ƒ† ”–‹…Ž‡• ‘ˆ ••‘…‹ƒ–‹‘ ‘ˆ –Š‡
‘’ƒ›Ǣ
ȋ„Ȍ ‡š’‡•‡•ˆ‘”’”‹–‹‰–Š‡‡‘”ƒ†—ƒ†”–‹…Ž‡•‘ˆ••‘…‹ƒ–‹‘Ǣ
ȋ…Ȍ ‡š’‡•‡•„›™ƒ›‘ˆˆ‡‡•ˆ‘””‡‰‹•–”ƒ–‹‘‘ˆ–Š‡…‘’ƒ›—†‡”‘’ƒ‹‡•…–ǡƒ†
ȋ†Ȍ ‡š’‡†‹–—”‡‹…—””‡†‹…‘‡…–‹‘™‹–Š‹••—‡ˆ‘”’—„Ž‹…•—„•…”‹’–‹‘‘ˆ•Šƒ”‡•‘”†‡„‡–—”‡•‘ˆ–Š‡
…‘’ƒ›ǡ„‡‹‰—†‡”™”‹–‹‰…‘‹••‹‘ǡ„”‘‡”ƒ‰‡ƒ†–Š‡…Šƒ”‰‡•‘ˆ†”ƒˆ–‹‰ǡ–›’‹‰ǡ’”‹–‹‰ƒ†
ƒ†˜‡”–‹•‡‡–‘ˆ–Š‡’”‘•’‡…–—•Ǣƒ†
ȋ˜‹Ȍ •—…Š‘–Š‡”‹–‡•‘ˆ‡š’‡•‡•‘–…‘˜‡”‡†„›–Š‡Ž‹•–•’‡…‹ϐ‹‡†ƒ„‘˜‡™Š‹…Š–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•
ƒ›’”‡•…”‹„‡ˆ‘”–Š‡’—”’‘•‡‘ˆƒ‘”–‹•ƒ–‹‘—†‡”–Š‹••‡…–‹‘Ǥ
‘—–—ƒŽ‹ˆ›‹‰ˆ‘”‡†—…–‹‘ǣ

Š‡ƒš‹—ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ–Š‡“—ƒŽ‹ˆ›‹‰‡š’‡•‡•–Šƒ–…ƒ„‡ƒ‘”–‹•‡†Šƒ•„‡‡ϐ‹š‡†ƒ–
Ȉ ͷΨ‘ˆ–Š‡…‘•–‘ˆ–Š‡’”‘Œ‡…–‹…ƒ•‡‘ˆƒ••‡••‡‡‘–Š‡”–Šƒ†‹ƒ…‘’ƒ›
Ȉ –Š‡…ƒ•‡‘ˆƒ†‹ƒ…‘’ƒ›ǡƒ––Š‡‘’–‹‘‘ˆ–Š‡…‘’ƒ›ǡ
 ʹͳͲ Lesson 4 Ȉ EP-TL

Ȉ ͷΨ‘ˆ–Š‡…ƒ’‹–ƒŽ‡’Ž‘›‡†‹–Š‡„—•‹‡••‘ˆ–Š‡…‘’ƒ›ǡ‘”
Ȉ ‘•–‘ˆ”‘Œ‡…–
™Š‹…Š‡˜‡”‹•Š‹‰Š‡”ǤŠ‡‡š…‡••ǡ‹ˆƒ›ǡ‘ˆ–Š‡“—ƒŽ‹ˆ›‹‰‡š’‡•‡••ŠƒŽŽ„‡‹‰‘”‡†Ǥ
š’‡•‡•‹…—””‡†„‡ˆ‘”‡…‘‡…‡‡–‘ˆ—•‹‡••ǣ ‘”–Š‡’—”’‘•‡‘ˆƒ‘”–‹•ƒ–‹‘ǡ–Š‡‡š’”‡••‹‘Dz‘•–‘ˆ–Š‡
”‘Œ‡…–dz‹”‡Žƒ–‹‘–‘–Š‡‡š’‡•‡•‹…—””‡†„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆ–Š‡„—•‹‡••‡ƒ•–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡
ϐ‹š‡†ƒ••‡–•„‡‹‰Žƒ†ǡ„—‹Ž†‹‰•ǡŽ‡ƒ•‡Š‘Ž†•ǡ’Žƒ–ǡƒ…Š‹‡”›ǡˆ—”‹–—”‡ǡϐ‹––‹‰•ƒ†”ƒ‹Ž™ƒ›•‹†‹‰•ǡ‹…Ž—†‹‰
‡š’‡†‹–—”‡‘–Š‡†‡˜‡Ž‘’‡–‘ˆŽƒ†ƒ†„—‹Ž†‹‰•ǡ™Š‹…Šƒ”‡•Š‘™‹–Š‡„‘‘•‘ˆƒ……‘—–•‘ˆ–Š‡ƒ••‡••‡‡ƒ•
‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡ƒ……‘—–‹‰›‡ƒ”‹™Š‹…Š–Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡ƒ…–—ƒŽŽ›…‘‡…‡•Ǥ
š’‡•‡•‹…—””‡†ƒˆ–‡”…‘‡…‡‡–‘ˆ—•‹‡••ǣŠ‡”‡–Š‡‡š’‡•‡•ƒ”‡‹…—””‡†ƒˆ–‡”–Š‡…‘‡…‡‡–‘ˆ
„—•‹‡••‡‹–Š‡”‹…‘‡…–‹‘™‹–Š–Š‡‡š–‡•‹‘‘ˆ–Š‡’”‡•‡–—†‡”–ƒ‹‰‘”‹…‘‡…–‹‘™‹–Š–Š‡•‡––‹‰—’‘ˆ
ƒ‡™—‹–ǡ–Š‡…‘•–‘ˆ–Š‡’”‘Œ‡…–•Š‘—Ž†„‡–ƒ‡–‘‡ƒ–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ϐ‹š‡†ƒ••‡–•ǡ„‡‹‰Žƒ†ǡ„—‹Ž†‹‰•ǡ
Ž‡ƒ•‡Š‘Ž†•ǡ’Žƒ–ǡƒ…Š‹‡”›ǡˆ—”‹–—”‡ǡϐ‹––‹‰•ƒ†”ƒ‹Ž™ƒ›•‹†‹‰•ǡ‹…Ž—†‹‰‡š’‡†‹–—”‡‘–Š‡†‡˜‡Ž‘’‡–‘ˆ
–Š‡Žƒ†ƒ†„—‹Ž†‹‰™Š‹…Šƒ”‡•Š‘™‹–Š‡„‘‘•‘ˆ–Š‡ƒ••‡••‡‡ƒ•‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š
‡š–‡•‹‘‘ˆ–Š‡—†‡”–ƒ‹‰‹•…‘’Ž‡–‡†‘”–Š‡‡™—‹–…‘‡…‡•’”‘†—…–‹‘‘”‘’‡”ƒ–‹‘•ǡƒ•–Š‡…ƒ•‡ƒ›
„‡ǡ–‘–Š‡‡š–‡––‘™Š‹…Š•—…Šϐ‹š‡†ƒ••‡–•Šƒ˜‡„‡‡ƒ…“—‹”‡†‘”†‡˜‡Ž‘’‡†‹…‘‡…–‹‘™‹–Š–Š‡‡š–‡•‹‘‘ˆ
–Š‡—†‡”–ƒ‹‰‘”–Š‡•‡––‹‰—’‘ˆ–Š‡‡™—‹–‘ˆ–Š‡ƒ••‡••‡‡Ǥ
NoteǣŠ‡ƒ—†‹–”‡’‘”–‹•–‘„‡ˆ—”‹•Š‡†ƒ–Ž‡ƒ•–‘‡‘–Š’”‹‘”–‘–Š‡†—‡†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡
—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǤȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
 –Š‡ …ƒ•‡ ‘ˆ …‘’ƒ›ǡ –Š‡ Dz…ƒ’‹–ƒŽ ‡’Ž‘›‡†dz ‹ –Š‡ „—•‹‡•• ‡ƒ• ™Š‡”‡ ’”‡Ž‹‹ƒ”› ‡š’‡•‡• Šƒ˜‡ „‡‡
‹…—””‡†„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆ–Š‡„—•‹‡••ǡ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡‹••—‡†•Šƒ”‡…ƒ’‹–ƒŽǡ†‡„‡–—”‡•ƒ†Ž‘‰Ǧ
–‡” „‘””‘™‹‰• ƒ• ‘ –Š‡ Žƒ•– †ƒ› ‘ˆ –Š‡ ƒ……‘—–‹‰ ›‡ƒ” ‹ ™Š‹…Š –Š‡ „—•‹‡•• ‘ˆ –Š‡ …‘’ƒ› Šƒ• ƒ…–—ƒŽŽ›
…‘‡…‡†Ǥ…ƒ•‡•™Š‡”‡–Š‡‡š’‡†‹–—”‡Šƒ•„‡‡‹…—””‡†ƒˆ–‡”–Š‡…‘‡…‡‡–‘ˆ–Š‡„—•‹‡••ǡ–Š‡…ƒ’‹–ƒŽ
‡’Ž‘›‡†‹–Š‡„—•‹‡••‘ˆ–Š‡…‘’ƒ›•Š‘—Ž†„‡–ƒ‡–‘„‡–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡‹••—‡†•Šƒ”‡…ƒ’‹–ƒŽǡ†‡„‡–—”‡•
ƒ†Ž‘‰Ǧ–‡”„‘””‘™‹‰•ƒ•‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡ƒ……‘—–‹‰›‡ƒ”‹™Š‹…Š–Š‡‡š–‡•‹‘‘ˆ–Š‡—†‡”–ƒ‹‰‹•
…‘’Ž‡–‡†‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡‡™—‹–…‘‡…‡•’”‘†—…–‹‘‘”‘’‡”ƒ–‹‘ǡ–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡
…ƒ’‹–ƒŽǡ†‡„‡–—”‡•ƒ†Ž‘‰Ǧ–‡”„‘””‘™‹‰•Šƒ˜‡„‡‡‹••—‡†‘”‘„–ƒ‹‡†‹…‘‡…–‹‘™‹–Š–Š‡‡š–‡•‹‘‘ˆ–Š‡
—†‡”–ƒ‹‰‘”•‡––‹‰—’‘ˆ–Š‡‡™—‹–‘ˆ–Š‡…‘’ƒ›Ǥ
Š‡ ‡š’”‡••‹‘ DzŽ‘‰Ǧ–‡” „‘””‘™‹‰•dz –‘ „‡ ‹…Ž—†‡† ƒ• ’ƒ”– ‘ˆ –Š‡ …ƒ’‹–ƒŽ ‡’Ž‘›‡† ‹ –Š‡ „—•‹‡•• ‘ˆ –Š‡
…‘’ƒ›•Š‘—Ž†„‡–ƒ‡–‘‡ƒǣ
ȋ‹Ȍ ƒ›‘‡›•„‘””‘™‡†„›–Š‡…‘’ƒ›ˆ”‘–Š‡
‘˜‡”‡–‘”–Š‡†—•–”‹ƒŽ ‹ƒ…‡‘”’‘”ƒ–‹‘‘ˆ†‹ƒ
‘”†—•–”‹ƒŽ”‡†‹–ƒ†˜‡•–‡–‘”’‘”ƒ–‹‘‘ˆ†‹ƒ‘”ƒ›‘–Š‡”ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘™Š‹…Š‹•‡Ž‹‰‹„Ž‡ˆ‘”
†‡†—…–‹‘—†‡”‡…–‹‘͵͸ȋͳȌȋ˜‹‹Ȍ‘ˆ–Š‡…–‘”ƒ›„ƒ‹‰‹•–‹–—–‹‘Ǣ‘”
ȋ‹‹Ȍ ƒ› ‘‡›• „‘””‘™‡† ‘” †‡„– ‹…—””‡† „› –Š‡ …‘’ƒ› ‹ ƒ ˆ‘”‡‹‰ …‘—–”› ‹ ”‡•’‡…– ‘ˆ –Š‡ ’—”…Šƒ•‡•
‘—–•‹†‡†‹ƒ‘ˆ…ƒ’‹–ƒŽ’Žƒ–ƒ†ƒ…Š‹‡”›™Š‡”‡–Š‡–‡”•‘ˆ–Š‡„‘””‘™‹‰’”‘˜‹†‡ˆ‘””‡’ƒ›‡–‘ˆ–Š‡
‘‡›„‘””‘™‡†‘”†‡„–‹…—””‡†‘˜‡”ƒ’‡”‹‘†‘ˆ‘–Ž‡••–Šƒ•‡˜‡›‡ƒ”•Ǥ
Š‡ƒŽŽ‘™ƒ…‡–‘™ƒ”†•ƒ‘”–‹•ƒ–‹‘‘ˆ’”‡Ž‹‹ƒ”›‡š’‡•‡•‹••—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡ƒ……‘—–•‘ˆ–Š‡
ƒ••‡••‡‡ˆ‘”–Š‡›‡ƒ”‘”›‡ƒ”•‹™Š‹…Š–Š‡’”‡Ž‹‹ƒ”›‡š’‡•‡•ƒ”‡‹…—””‡†Šƒ˜‡„‡‡ƒ—†‹–‡†„›ƒŠƒ”–‡”‡†
……‘—–ƒ–‘”‘–Š‡”ƒ……‘—–ƒ–•’‡…‹ϐ‹‡†‹‡…–‹‘ʹͺͺȋʹȌ‘ˆ–Š‡…–ƒ†ǡ‹ƒ††‹–‹‘ǡ–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒŽ‘‰
™‹–ŠŠ‹•”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡ϐ‹”•–›‡ƒ”‹™Š‹…Š–Š‡†‡†—…–‹‘‹•…Žƒ‹‡†ǡ–Š‡”‡’‘”–‘ˆƒ—†‹–‹–Š‡’”‡•…”‹„‡†
ˆ‘”ǡ†—Ž›•‹‰‡†ƒ†˜‡”‹ϐ‹‡†„›–Š‡ƒ—†‹–‘”ƒ†•‡––‹‰‘—–•—…Š‘–Š‡”’ƒ”–‹…—Žƒ”•ƒ•Šƒ˜‡„‡‡’”‡•…”‹„‡†„›–Š‡
‘ƒ”†ˆ‘”–Š‹•’—”’‘•‡Ǥ
NoteǣŠ‡ƒ—†‹–”‡’‘”–‹•–‘„‡ˆ—”‹•Š‡†ƒ–Ž‡ƒ•–‘‡‘–Š’”‹‘”–‘–Š‡†—‡†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡
—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǤȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
…ƒ•‡•‘ˆƒƒŽ‰ƒƒ–‹‘ƒ•†‡ϐ‹‡†‹‡…–‹‘ʹȋͳȌ‘ˆ–Š‡…–ǡ™Š‡”‡–Š‡—†‡”–ƒ‹‰‘ˆƒ†‹ƒ‘’ƒ›Šƒ•
„‡‡–”ƒ•ˆ‡””‡†„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–‡›‡ƒ”•ǡ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›™‘—Ž†‘–„‡‡–‹–Ž‡†–‘–Š‡ƒŽŽ‘™ƒ…‡
–‘™ƒ”†• ƒ‘”–‹•ƒ–‹‘ ‘ˆ ’”‡Ž‹‹ƒ”› ‡š’‡•‡• ‹ –Š‡ ›‡ƒ” ‹ ™Š‹…Š –Š‡ ƒƒŽ‰ƒƒ–‹‘ –ƒ‡• ’Žƒ…‡•Ǥ —– –Š‡
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›™‘—Ž†„‡‡–‹–Ž‡†–‘–Š‡ƒŽŽ‘™ƒ…‡ˆ‘”–Š‡”‡ƒ‹‹‰’‡”‹‘†‘˜‡”™Š‹…Š–Š‡ƒŽŽ‘™ƒ…‡—†‡”
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͳͳ

–Š‹••‡…–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡ǤŠ‡–‘–ƒŽ’‡”‹‘†‘˜‡”™Š‹…Š–Š‡ƒ‘”–‹•ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡•Š‘—Ž†‘–‡š…‡‡†–‡›‡ƒ”•‘”
ϐ‹˜‡›‡ƒ”•ƒ•–Š‡…ƒ•‡ƒ›„‡‹–Š‡…ƒ•‡‘ˆ„‘–Š–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ƒ†–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǤŠ‡
ƒŽŽ‘™ƒ…‡—†‡”–Š‹••‡…–‹‘™‘—Ž†‘–„‡†‡‹‡†ǡ‹…ƒ•‡•‘ˆƒƒŽ‰ƒƒ–‹‘ǡ–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›‡”‡Ž›
„‡…ƒ—•‡–Š‡‡š’‡†‹–—”‡Šƒ•‘–ƒ…–—ƒŽŽ›„‡‡‹…—””‡†„›–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›Ǥ‹‹Žƒ”Ž›ǡ‹…ƒ•‡‘ˆ†‡‡”‰‡”
™Š‡”‡ƒ—†‡”–ƒ‹‰‘ˆƒ†‹ƒ…‘’ƒ›™Š‹…Š‹•‡–‹–Ž‡†–‘–Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•–”ƒ•ˆ‡””‡†
„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡•ƒ‹†’‡”‹‘†‘ˆͳͲ›‡ƒ”•‘”ͷ›‡ƒ”•ȋƒ•–Š‡…ƒ•‡ƒ›„‡Ȍǡ–‘ƒ‘–Š‡”…‘’ƒ›‹ƒ•…Š‡‡‘ˆ
†‡‡”‰‡” ‘ †‡†—…–‹‘ •ŠƒŽŽ „‡ ƒ†‹••‹„Ž‡ –‘ –Š‡ †‡‡”‰‡† …‘’ƒ› ‹ –Š‡ ›‡ƒ” ‹ ™Š‹…Š –Š‡ †‡‡”‰‡” –ƒ‡•
’Žƒ…‡ǤŠ‡”‡•—Ž–‹‰…‘’ƒ›™‘—Ž†„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘ˆ‘”–Š‡„ƒŽƒ…‡’‡”‹‘†—†‡”–Š‹••‡…–‹‘Ǥ
‘–Š‡”™‘”†•ǡ–Š‡†‡†—…–‹‘ˆ‘”–Š‡„ƒŽƒ…‡’‡”‹‘†™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡–‘”‡•—Ž–‹‰…‘’ƒ›ƒ•‹–™‘—Ž†Šƒ˜‡„‡‡
ƒ˜ƒ‹Žƒ„Ž‡–‘†‡‡”‰‡†…‘’ƒ›ǡ‹ˆ–Š‡†‡‡”‰‡”Šƒ†‘––ƒ‡’Žƒ…‡Ǥ…ƒ•‡•™Š‡”‡’”‡Ž‹‹ƒ”›‡š’‡•‡•“—ƒŽ‹ˆ›
ˆ‘” ƒ‘”–‹•ƒ–‹‘ —†‡” ‡…–‹‘ ͵ͷ ƒ† –Š‡ ƒŽŽ‘™ƒ…‡ …Žƒ‹‡† „› –Š‡ ƒ••‡••‡‡ ‹ –Š‹• ”‡‰ƒ”† ‹• ƒŽŽ‘™‡† ‹ ƒ›
ƒ••‡••‡–›‡ƒ”ǡ–Š‡•‡‡š’‡•‡•™‘—Ž†‘–“—ƒŽ‹ˆ›ˆ‘”ƒ›ƒŽŽ‘™ƒ…‡‘”†‡†—…–‹‘‹”‡•’‡…–‘ˆƒ›‘–Š‡”ƒ••‡••‡–
›‡ƒ”‘”‡˜‡‹–Š‡•ƒ‡›‡ƒ”—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ

‘”–‹•ƒ–‹‘‘ˆš’‡†‹–—”‡‹–Š‡…ƒ•‡‘ˆ‘Ž—–ƒ”›‡–‹”‡‡–…Š‡‡ȏ‡…–‹‘͵ͷȐ
‡Ǧϐ‹ˆ–Š‘ˆ–Š‡‡š’‡†‹–—”‡‹…—””‡†„›ƒƒ••‡••‡‡Ǧ‡’Ž‘›‡”‹ƒ›’”‡˜‹‘—•›‡ƒ”‹–Š‡ˆ‘”‘ˆ’ƒ›‡––‘ƒ›
‡’Ž‘›‡‡‹…‘‡…–‹‘™‹–ŠŠ‹•˜‘Ž—–ƒ”›”‡–‹”‡‡–‹ƒ……‘”†ƒ…‡™‹–Šƒ•…Š‡‡‘ˆ˜‘Ž—–ƒ”›”‡–‹”‡‡–•ŠƒŽŽ„‡
ƒŽŽ‘™‡† ƒ• †‡†—…–‹‘ ‹ –Šƒ– ’”‡˜‹‘—• ›‡ƒ” ƒ† –Š‡ „ƒŽƒ…‡ ‹ ˆ‘—” ‡“—ƒŽ ‹•–ƒŽŽ‡–• ‹ –Š‡ ‹‡†‹ƒ–‡Ž› ˆ‘—”
•—……‡‡†‹‰’”‡˜‹‘—•›‡ƒ”•Ǥ

–Š‡”‡†—…–‹‘•ȏ‡…–‹‘͵͸Ȑ
Š‡‘–Š‡”†‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡™Š‹Ž‡…‘’—–‹‰–Š‡‹…‘‡ˆ”‘„—•‹‡••Ȁ’”‘ˆ‡••‹‘•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

›’‡Ƭ‡…–‹‘ ‡†—…–‹‘•

•—”ƒ…‡”‡‹ƒ’ƒ‹†—Ȁ•͵͸ȋͳȌȋ‹Ȍ ”‡‹ƒ ’ƒ‹† ‘ ‹•—”ƒ…‡ ’‘Ž‹…› –‘ …‘˜‡” ”‹• ‘ˆ
†ƒƒ‰‡Ȁ†‡•–”—…–‹‘–‘•–‘…Ȁ•–‘”‡•‘ˆ–Š‡„—•‹‡••Ǥ
”‡‹ƒ ’ƒ‹† „› ‡’Ž‘›‡” ˆ‘” Š‡ƒŽ–Š ‹•—”ƒ…‡ ‘ˆ ”‡‹ƒ ’ƒ‹† „› ‡’Ž‘›‡” „› ƒ› ‘†‡ ‘–Š‡” –Šƒ
‡’Ž‘›‡‡•—Ȁ•͵͸ȋͳȌȋ‹„Ȍ „› …ƒ•Šǡ ‘ Š‡ƒŽ–Š ‹•—”ƒ…‡ ‘ˆ ‹–ǯ• ‡’Ž‘›‡‡•ǡ ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†„›
‘ˆ†‹ƒǡ‘”
ƒ’’”‘˜‡†„›–Š‡Ǥ
‘—•Ƭ‘‹••‹‘—Ȁ•͵͸ȋͳȌȋ‹‹Ȍ ‡†—…–‹„Ž‡ ‹ ˆ—ŽŽ ƒ• Ž‘‰ ƒ• –Š‡ „‘—• Ȁ …‘‹••‹‘
•ŠƒŽŽ ‘– „‡’ƒ›ƒ„Ž‡–‘–Š‡ƒ•’”‘ϐ‹–•Ȁ†‹˜‹†‡†•ǡ‹ˆ‹–
Šƒ†‘–„‡‡’ƒ‹†ƒ•„‘—•Ȁ…‘‹••‹‘Ǥ
–‡”‡•– ‘ ‘””‘™‡† ƒ’‹–ƒŽ —Ȁ•͵͸ȋͳȌȋ‹‹‹Ȍ ‡†—…–‹‘ ƒŽŽ‘™‡† ˆ‘” ƒ› ‹–‡”‡•– ’ƒ‹† ‹ ”‡•’‡…– ‘ˆ
‹•…‘—– ‘ ‡”‘ ‘—’‘ ‘†•—Ȁ•͵͸ȋͳȌȋ‹‹‹ƒȌ
…ƒ’‹–ƒŽ „‘””‘™‡† ˆ‘” „—•‹‡••Ǥ  …ƒ•‡ –Š‡ …ƒ’‹–ƒŽ ‹•
„‘””‘™‡† ˆ‘” ƒ…“—‹”‹‰ ƒ ƒ••‡–ǡ –Š‡ ‹–‡”‡•– ‹•
…ƒ’‹–ƒŽ‹•‡† ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ „‘””‘™‹‰ —–‹Ž –Š‡ †ƒ–‡
™Š‡–Š‡ƒ••‡–‹•’—––‘—•‡Ǥ‘•––Š‡Dz’—––‘—•‡dz†ƒ–‡ǡ
‹–…ƒ‘–„‡…ƒ’‹–ƒŽ‹•‡†ƒ›‘”‡ƒ†–Š‡•—…Š‹–‡”‡•–
„‡…‘‡•ƒƒŽŽ‘™ƒ„Ž‡†‡†—…–‹‘Ǥ
‹ˆˆ‡”‡…‡ „‡–™‡‡ –Š‡ ‹••—‡ ƒ† –Š‡ ”‡†‡’–‹‘
˜ƒŽ—‡•ǡƒ•–Š‡•‡ƒ”‡‹••—‡†ƒ–ƒ†‹•…‘—–ƒ†”‡†‡‡‡†
ƒ–’ƒ”Ǥ˜ƒ‹Žƒ„Ž‡–‘ˆ”ƒǤ‘’ƒ‹‡•Ȁˆ—†•Ȁ…Š‡†—Ž‡†
ƒ•ǡ •–ƒ”–‹‰ ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ‹••—‡ ‘ˆ –Š‡ „‘†ǡ
‡†‹‰™‹–Š–Š‡ƒ–—”‹–›Ȁ”‡†‡’–‹‘Ǥ
‘–”‹„—–‹‘–‘”‘˜‹†‡–Ƭ–Š‡”ˆ—†•—Ȁ•͵͸ȋͳȌȋ‹˜Ȍ ŽŽ‘™ƒ„Ž‡‹ˆ–Š‡ˆ—†‹••‡––Ž‡†—’‘ƒ–”—•–ǡ‹–•Š‘—Ž†
Ƭȋ˜Ȍ „‡ ”‡…‘‰‹•‡† Ȁ ƒ’’”‘˜‡†ǡ ƒ† –Š‡ …‘–”‹„—–‹‘•
•Š‘—Ž† „‡ ’‡”‹‘†‹…ǡ ƒ† ƒ• Ž‘‰ ƒ• –Š‡ˆ—†‹•ˆ‘”–Š‡
„‡‡ϐ‹–‘ˆ–Š‡‡’Ž‘›‡‡•Ǥ
 ʹͳʹ Lesson 4 Ȉ EP-TL

’Ž‘›‡”ǯ• …‘–”‹„—–‹‘ –‘ –Š‡ ƒȀ…‘ˆ –Š‡ ‡’Ž‘›‡‡ ‡†—…–‹‘‹•”‡•–”‹…–‡†–‘ͳͲΨ‘ˆ•ƒŽƒ”›‘ˆ‡’Ž‘›‡‡‹

—†‡” ƒ ’‡•‹‘•…Š‡‡”‡ˆ‡””‡†–‘‹‡…–‹‘ͺͲ ǤƒŽƒ”›ǡŠ‡”‡ǡ ™‘—Ž†‹…Ž—†‡‘Ž›ƒ•‹…Ƭ ȋ‹ˆ –Š‡
ȏ‡…–‹‘͵͸ȋͳȌȋ˜ƒȌȐ –‡”•‘ˆ‡’Ž‘›‡–’”‘˜‹†‡ȌǤ
’Ž‘›‡‡ǯ• ‘–”‹„—–‹‘ –‘ ‡Žˆƒ”‡ —†• ȏ‡…–‹‘ ‡‡‡† ƒ• „—•‹‡•• ‹…‘‡ ‘ˆ –Š‡ ‡’Ž‘›‡”
͵͸ȋͳȌȋ˜ƒȌȐ ƒ••‡••‡‡ ƒ† ™‹ŽŽ „‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‘Ž›‹ˆ–Š‡
‡’Ž‘›‡‡ …‘–”‹„—–‹‘• Šƒ˜‡ „‡‡ …”‡†‹–‡† –‘ –Š‡
‡’Ž‘›‡‡•ǯƒ……‘—–„›–Š‡ƒ••‡••‡‡‹–Š‡ˆ—†ǡ‘‘”
„‡ˆ‘”‡–Š‡†—‡†ƒ–‡—†‡”–Š‡”‡•’‡…–‹˜‡™‡Žˆƒ”‡ƒ…–•Ǥ

ƒ†‡„–•—Ȁ•͵͸ȋͳȌȋ˜‹‹ȌƬ͵͸ȋʹȌ ŽŽ‘™ƒ„Ž‡ ‹ˆ –Š‡ †‡„–• ™”‹––‡ ‘ˆˆ ƒ• ‹””‡…‘˜‡”ƒ„Ž‡ ‹
–Š‡ƒ……‘—–•‘ˆ–Š‡ƒ••‡••‡‡’‡”–ƒ‹–‘–Š‡„—•‹‡••Ȁ
’”‘ˆ‡••‹‘…ƒ””‹‡†‘†—”‹‰–Š‡ƒ†ƒ•Ž‘‰ƒ•–Š‡
†‡„–™ƒ•…‘•‹†‡”‡†‹–Š‡‹…‘‡ˆ‘”–Š‡‹™Š‹…Š‹–
™ƒ• ‡ƒ”‡†Ǥ ˆ ‘ –Š‡ ϐ‹ƒŽ •‡––Ž‡‡–ǡ –Š‡ ƒ‘—–
”‡…‘˜‡”‡† ‘ ƒ› †‡„– ˆƒŽŽ• •Š‘”– ‘ˆ –Š‡ –‘–ƒŽ †‡„–
‹—•–Š‡†‡„–ƒŽŽ‘™‡†ǡ–Š‡†‡ϐ‹…‹‡…›™‹ŽŽ„‡ƒŽŽ‘™‡†
ƒ•ƒ†‡†—…–‹‘‹–Š‡›‡ƒ”‘ˆ”‡…‘˜‡”›ƒ†‹ˆ–Š‡ƒ‘—–
•‘ ”‡…‘˜‡”‡† ‹• ‘”‡ –Šƒ –Š‡ ƒ‘—– †—‡ ƒˆ–‡” –Š‡
ƒŽŽ‘™ƒ…‡Šƒ•„‡‡ƒ†‡ǡ–Š‡‡š…‡••™‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡
–‘–ƒšǤ

š’‡•‡•‘ˆƒ‹Ž›’Žƒ‹‰ȏ‡…–‹‘͵͸ȋͳȌȋ‹šȌȐ ˆ–Š‡‡š’‡†‹–—”‡‹•…ƒ’‹–ƒŽ‹ƒ–—”‡ǡƒŽŽ‘™ƒ„Ž‡‹ϐ‹˜‡
‡“—ƒŽ ‹•–ƒŽ‡–• „‡‰‹‹‰ –Š‡  ‹ ™Š‹…Š ‹– ™ƒ•
‹…—””‡† ƒ† ‹ˆ ”‡˜‡—‡ ‹ ƒ–—”‡ǡ ‹– •ŠƒŽŽ „‡ ˆ—ŽŽ›
ƒŽŽ‘™ƒ„Ž‡ ‹ –Š‡  ‹ ™Š‹…Š ‹– ™ƒ• ‹…—””‡†Ǥ Š‡
†‡†—…–‹‘‹• ƒŽŽ‘™ƒ„Ž‡ to …‘”’‘”ƒ–‡ ƒ••‡••‡‡• ‘Ž›.

‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒšƒ‹†ȏ‡…–‹‘͵͸ȋͳȌȋš˜ȌȐ ŽŽ‘™ƒ„Ž‡ ‹ ”‡•’‡…– ‘ˆ –”ƒ•ƒ…–‹‘• ‡–‡”‡† ‹ –Š‡

…‘—”•‡ ‘ˆ „—•‹‡••ǡ ƒ• Ž‘‰ ƒ• –Š‡ ‹…‘‡ ˆ”‘ –Š‡
–ƒšƒ„Ž‡•‡…—”‹–‹‡•ǯ–”ƒ•ƒ…–‹‘•ǡ‹”‡•’‡…–‘ˆ ™Š‹…Š ‹–
™ƒ• ‹…—””‡†ǡ ‹• ‹…Ž—†‡† —†‡” –Š‡ Š‡ƒ†• Dz”‘ϐ‹–• Ȁ

ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dz

‘‘†‹–‹‡•”ƒ•ƒ…–‹‘ƒš’ƒ‹†ȏ‡…–‹‘͵͸ȋͳȌ ŽŽ‘™ƒ„Ž‡ ‹ ”‡•’‡…– ‘ˆ –”ƒ•ƒ…–‹‘• ‡–‡”‡† ‹ –Š‡

ȋš˜‹ȌȐ …‘—”•‡ ‘ˆ „—•‹‡••ǡ ƒ• Ž‘‰ ƒ• –Š‡ ‹…‘‡ ˆ”‘ –Š‡
–ƒšƒ„Ž‡…‘‘†‹–‹‡•ǯ–”ƒ•ƒ…–‹‘•ǡ‹”‡•’‡…–‘ˆ™Š‹…Š
‹–™ƒ•‹…—””‡†ǡ‹•‹…Ž—†‡†—†‡”–Š‡Š‡ƒ†•Dz”‘ϐ‹–•Ȁ

ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dz ‘”–Š‹•’—”’‘•‡ǡƒ
Ǯ–ƒšƒ„Ž‡…‘‘†‹–‹‡•–”ƒ•ƒ…–‹‘ǯ ‡ƒ• ƒ–”ƒ•ƒ…–‹‘
‘ˆ•ƒŽ‡‘ˆ…‘‘†‹–›†‡”‹˜ƒ–‹˜‡•or sale of commodity
derivatives based on prices or indices of prices of
commodity derivatives or option on commodity
derivatives or option in goods in respect of
commodities, other than agricultural commodities,
traded in recognised stock exchange.

–Š‡”š’‡•‡•ȏ‡…–‹‘͵͹Ȑ
‡…–‹‘͵͹ȋͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–’”‘˜‹†‡•ˆ‘”ƒŽŽ‘™ƒ…‡‹”‡•’‡…–‘ˆƒ›‘–Š‡”‹–‡‘ˆ‡š’‡†‹–—”‡‘–…‘˜‡”‡†
„› ƒ› ‘ˆ –Š‡ ’”‘˜‹•‹‘• …‘–ƒ‹‡† ‹ ‡…–‹‘• ͵Ͳ –‘ ͵͸ †‹•…—••‡† ƒ„‘˜‡ ƒ† ‹• Ž‹‹–‡† –‘ –Š‡ ƒ‘—– ƒ…–—ƒŽŽ›
‡š’‡†‡††—”‹‰–Š‡”‡˜‹‘—•‡ƒ”ǤŠ‹•†‡†—…–‹‘‹••—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͳ͵

š’‡†‹–—”‡•Š‘—Ž†‘–„‡…‘˜‡”‡†—Ȁ•͵ͲǦ͵͸

š’‡†‹–—”‡•Š‘—Ž†„‡‹…—””‡†„›–Š‡ƒ••‡••‡‡‹–Š‡
š’‡†‹–—”‡•Š‘—Ž†„‡‹…—””‡†™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›ˆ‘”–Š‡’—”’‘•‡‘ˆ
„—•‹‡••Ȁ’”‘ˆ‡••‹‘
‘†‹–‹‘•
š’‡†‹–—”‡•Š‘—Ž†‘–„‡’‡”•‘ƒŽ‹ƒ–—”‡

š’‡†‹–—”‡•Š‘—Ž†‘–„‡…ƒ’‹–ƒŽ‹ƒ–—”‡
š’‡†‹–—”‡‹•‘–‹…—””‡†ˆ‘”ƒ›’—”’‘•‡™Š‹…Š‹•ƒ‘ˆˆ‡…‡‘”’”‘Š‹„‹–‡†
„›Žƒ™‹ŽŽ‡‰ƒŽȀ‹‘”ƒŽ’—”’‘•‡
Note:
ͳǤ ‘”’‘”ƒ–‡‘…‹ƒŽ‡•’‘•‹„‹Ž‹–›ȋȌ‡š’‡†‹–—”‡‹•‘–…‘•–”—‡†–‘Šƒ˜‡„‡‡‹…—””‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ
„—•‹‡••Ȁ’”‘ˆ‡••‹‘ƒ†Š‡…‡™‹ŽŽ„‡†‹•ƒŽŽ‘™‡†ǡƒ†™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ’–Ž›—†‡”–Š‡”‡Ž‡˜ƒ–‡…–‹‘•͵ͲǦ
͵͸Ǥ
ʹǤ › ƒ†˜‡”–‹•‡‡– ‡š’‡†‹–—”‡ ‹ •‘—˜‡‹”• ‘ˆ ’‘Ž‹–‹…ƒŽ ’ƒ”–‹‡•ǡ ”‡’”‡•‡–‹‰ …‘–”‹„—–‹‘• ˆ‘” ’‘Ž‹–‹…ƒŽ
’—”’‘•‡•ǡ™‘—Ž†„‡†‹•ƒŽŽ‘™‡†Ǥ
‘‡‘ˆ–Š‡‡šƒ’Ž‡•‘ˆƒŽŽ‘™ƒ„Ž‡‡š’‡•‡•—†‡”‡…–‹‘͵͹ȋͳȌƒ”‡ƒ•—†‡”ǣ
ȋ‹Ȍ š’‡†‹–—”‡‹…—””‡†‘”ƒ‹•‹‰Ž‘ƒ•‘”‹••—‹‰†‡„‡–—”‡•„—–‘–‘‹••—‹‰•Šƒ”‡…ƒ’‹–ƒŽǤ
ȋ‹‹Ȍ ‡‰ƒŽ‡š’‡•‡•‹…—””‡†ǣ
ȋƒȌ –‘ƒ˜‘‹†ƒ„—•‹‡••Ž‹ƒ„‹Ž‹–›ǡ‡Ǥ‰Ǥǡˆ‘”ƒŽŽ‡‰‡†„”‡ƒ…Š‘ˆƒ–”ƒ†‹‰…‘–”ƒ…–Ǣ
ȋ„Ȍ –‘†‡ˆ‡†–Š‡ƒ••‡••‡‡ǯ•–‹–Ž‡–‘Š‹•ƒ••‡–•ǡ‡Ǥ‰ǤǡŽƒ†ǡ„—‹Ž†‹‰ǡ‡–…ǤǢ
ȋ…Ȍ –‘•‡…—”‡–Š‡–‡”‹ƒ–‹‘‘ˆƒ†‹•ƒ†˜ƒ–ƒ‰‡‘—•–”ƒ†‹‰”‡Žƒ–‹‘•Š‹’ǡ‡Ǥ‰Ǥǡ”‡‘˜ƒŽ‘ˆƒ—†‡•‹”ƒ„Ž‡
‡’Ž‘›‡‡Ǣ
ȋ†Ȍ „›ƒ†‹”‡…–‘”‘ˆƒ…‘’ƒ›‹†‡ˆ‡†‹‰ƒ•—‹–„”‘—‰Š––‘…ŠƒŽŽ‡‰‡–Š‡˜ƒŽ‹†‹–›‘ˆŠ‹•‡Ž‡…–‹‘–‘–Š‡
†‹”‡…–‘”•Š‹’Ǣ
ȋ‡Ȍ –‘’”‘–‡…––Š‡…ƒ’‹–ƒŽƒ••‡–‘ˆ–Š‡„—•‹‡••™Š‹…ŠŠƒ•ƒŽ”‡ƒ†›„‡‡ƒ…“—‹”‡†Ǣ
ȋˆȌ „›ƒ…‘’ƒ›‹”‡•‹•–‹‰ƒ™‹†‹‰—’’‡–‹–‹‘„›•‘‡•Šƒ”‡Š‘Ž†‡”•Ǣ
ȋ‰Ȍ ˆ‘”†‡ˆ‡†‹‰‘‘’‘Ž›”‹‰Š–•Ǣ
ȋŠȌ ‹…—””‡†‹”‡•–”ƒ‹‹‰ƒ‘–Š‡”…‘’ƒ›ˆ”‘—•‹‰ƒ••‡••‡‡ǯ•–”ƒ†‡ƒ”Ǥ
‘™‡˜‡”ǡ–Š‡‡š’‡•‡•‹…—””‡†‹…”‹‹ƒŽ’”‘…‡‡†‹‰•ƒ”‡‘–ƒŽŽ‘™ƒ„Ž‡Ǥ‡‰ƒŽ‡š’‡•‡•”‡Žƒ–‹‰–‘ƒ…“—‹•‹–‹‘‘ˆ
…ƒ’‹–ƒŽƒ••‡–ˆ‘”ƒ„—•‹‡••ƒ”‡…ƒ’‹–ƒŽ‡š’‡•‡•ƒ†ƒ••—…Šǡ‘–ƒŽŽ‘™ƒ„Ž‡Ǥ
 –Š‹• …‘‡…–‹‘ –Š‡ —’”‡‡ ‘—”– Š‡Ž† –Šƒ–Ǧ™Š‡”‡ Ž‹–‹‰ƒ–‹‘ ‡š’‡•‡• ƒ”‡ ‹…—””‡† „› –Š‡ ƒ••‡••‡‡ ˆ‘” –Š‡
’—”’‘•‡‘ˆ…”‡ƒ–‹‰ǡ…—”‹‰‘”…‘’Ž‡–‹‰Š‹•–‹–Ž‡–‘–Š‡…ƒ’‹–ƒŽǡ–Š‡–Š‡‡š’‡•‡•‹…—””‡†—•–„‡…‘•‹†‡”‡†ƒ•
…ƒ’‹–ƒŽ‡š’‡†‹–—”‡Ǥ—–‹ˆ–Š‡Ž‹–‹‰ƒ–‹‘‡š’‡•‡•ƒ”‡‹…—””‡†–‘’”‘–‡…––Š‡„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡ǡ–Š‡›—•–„‡
…‘•‹†‡”‡†ƒ•ƒ”‡˜‡—‡‡š’‡†‹–—”‡ǤȏƒŽ‹ƒ ƒ‹Ƭ‘Ǥ˜ǤǤǤǤȋͳͻ͹ͳȌͺͳ’Ǥ͹ͷͶȋǤǤȌȐǤ
š’‡†‹–—”‡ˆ‘”’”‘•‡…—–‹‰…‹˜‹Ž’”‘…‡‡†‹‰•‹•†‡†—…–‹„Ž‡’”‘˜‹†‡†–Š‡‡š’‡†‹–—”‡™ƒ•Žƒ‹†‘—–ˆ‘”–Š‡’—”’‘•‡
‘ˆ–Š‡„—•‹‡••™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›‹Ǥ‡Ǥ–‘’”‘‘–‡–Š‡‹–‡”‡•–‘ˆ–Š‡„—•‹‡••Ǥȏ”‡‡‡‡ƒ•Š‹‹ŽŽ•˜ǤǤǤǤ
ȋͳͻ͹͸Ȍ͸͵ǡ’ǤʹͲ͹ȋǤǤȌȐ
ȋ‹‹‹Ȍ ‘—•–‘‡’Ž‘›‡‡•—†‡”ƒ‹†—•–”‹ƒŽƒ™ƒ”†Ǥ
ȋ‹˜Ȍ š’‡•‡•ˆ‘”–Š‡‹•–ƒŽŽƒ–‹‘‘ˆ‡™–‡Ž‡’Š‘‡Ǥ
ȋ˜Ȍ ƒŽ‡•–ƒš‹•ƒƒ†‹••‹„Ž‡†‡†—…–‹‘„—–‘–‡•–ƒ–‡†—–›Ǥ
 ʹͳͶ Lesson 4 Ȉ EP-TL

ȋ˜‹Ȍ –‡”‡•–‘—’ƒ‹†’—”…Šƒ•‡’”‹…‡‘ˆ‰‘‘†•‘”…ƒ’‹–ƒŽƒ••‡–•Ǥ
ȋ˜‹‹Ȍ š’‡†‹–—”‡ ‹…—””‡† –‘ ‘’’‘•‡ ƒ–‹‘ƒŽ‹œƒ–‹‘ ‘” –‘ ’”‡˜‡– ‡š–‹…–‹‘ ‘ˆ „—•‹‡••Ǥ ‘™‡˜‡”ǡ –Š‡
†‘ƒ–‹‘• ‰‹˜‡ ˆ‘” –Š‡ ’‘Ž‹–‹…ƒŽ ’ƒ”–‹‡• ‘” ˆ‘” ’‘Ž‹–‹…ƒŽ …ƒ—•‡ ƒ”‡ ‘– ƒ†‹••‹„Ž‡ †‡†—…–‹‘• —†‡”
‡…–‹‘͵͹Ǥ
ȋ˜‹‹‹Ȍ —„•…”‹’–‹‘•‰‹˜‡ƒ”‡ƒŽŽ‘™‡†‹ˆ–Š‡‹”’ƒ›‡–‹•…‘’—Ž•‘”›‘”…‘‡”…‹ƒŽŽ›‡š’‡†‹‡–ƒ†‘ˆ„‡‡ϐ‹––‘
–Š‡’ƒ›‡”Ǥ
ȋ‹šȌ š’‡•‡•‹…—””‡†‘–Š‡‘……ƒ•‹‘‘ˆˆ‡•–‹˜ƒŽ‘”…—•–‘ƒ”›†ƒ›•ƒ”‡ƒŽŽ‘™‡†—’–‘ƒ”‡ƒ•‘ƒ„Ž‡ƒ‘—–
‡‡’‹‰ ‹ ˜‹‡™ –Š‡ •‹œ‡ ‘ˆ –Š‡ „—•‹‡•• ƒ† •—„Œ‡…– –‘ –Š‡ •ƒ–‹•ˆƒ…–‹‘ ‘ˆ –Š‡ ••‡••‹‰ ˆϐ‹…‡” –Šƒ– –Š‡
‡š’‡•‡•ƒ”‡‘–‡š’‡•‡•‘ˆ’‡”•‘ƒŽǡ•‘…‹ƒŽ‘””‡Ž‹‰‹‘•ƒ–—”‡Ǥ
ȋšȌ ‡…—””‹‰‡š’‡•‡•‹…—””‡†‘‹’ƒ”–‹‰„ƒ•‹…–”ƒ‹‹‰–‘ƒ’’”‡–‹…‡•—†‡”–Š‡’’”‡–‹…‡•…–ǡͳͻ͸ͳ‹•
†‡†—…–‹„Ž‡Ǥ
ȋš‹Ȍ ‹–‹ƒŽ‡š’‡†‹–—”‡‘–Š‡ϐ‹”•–‹•–ƒŽŽƒ–‹‘‘ˆϐŽ—‘”‡•…‡––—„‡Ž‹‰Š–•‹•–”‡ƒ–‡†ƒ•ƒ’‹–ƒŽ‡š’‡†‹–—”‡ƒ†
Š‡…‡ ‘– †‡†—…–‹„Ž‡ „—– ƒŽŽ •—„•‡“—‡– ‡š’‡†‹–—”‡ ˆ‘” ”‡’Žƒ…‡‡– ‘ˆ –—„‡• ‹• –”‡ƒ–‡† ƒ• ”‡˜‡—‡
‡š’‡†‹–—”‡ƒ†Š‡…‡†‡†—…–‹„Ž‡Ǥ
ȋš‹‹Ȍ ‘••–Š”‘—‰Š‡„‡œœŽ‡‡–„›ƒ‡’Ž‘›‡‡‹•†‡†—…–‹„Ž‡Ǥ
ȋš‹‹‹Ȍ ”‘ˆ‡••‹‘ƒŽ–ƒš’ƒ‹†„›ƒ’‡”•‘…ƒ””›‹‰‘„—•‹‡••‘”–”ƒ†‡‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ
ȋš‹˜Ȍ —ƒŽŽ‹•–‹‰ˆ‡‡’ƒ‹†–‘•–‘…‡š…Šƒ‰‡‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ
ȋš˜Ȍ š’‡•‡•‹…—””‡†‘‹˜‹Ž†‡ˆ‡…‡‡ƒ•—”‡•ƒ••’‡…‹ϐ‹‡†„›–Š‡‘ƒ”†ǡ‡˜‡™Š‡–Š‡”‡‹•‘‡‡”‰‡…›ǡ‹•
†‡†—…–‹„Ž‡Ǥ
ȋš˜‹Ȍ ”‘‡”ƒ‰‡’ƒ‹†ˆ‘””ƒ‹•‹‰Ž‘ƒ–‘ϐ‹ƒ…‡„—•‹‡••Ǥ
ȋš˜‹‹Ȍ –ƒ’ƒ†”‡‰‹•–”ƒ–‹‘…Šƒ”‰‡•ˆ‘”–Š‡’—”’‘•‡‘ˆ‡–‡”‹‰‹–‘ƒ‰”‡‡‡–ˆ‘”‘„–ƒ‹‹‰‘˜‡”†”ƒˆ–ˆƒ…‹Ž‹–‹‡•Ǥ
ȋš˜‹‹‹Ȍ ‡…—”‹–›†‡’‘•‹–‡†™‹–Š’‘•–ƒŽƒ—–Š‘”‹–‹‡•ˆ‘”–‡Ž‡š…‘‡…–‹‘†‡†—…–‹„Ž‡ƒ•„—•‹‡••‡š’‡†‹–—”‡Ǥ‘™‡˜‡”ǡ
™Š‡–Š‡ƒ‘—–‹•”‡–—”‡†„›’‘•–ƒŽƒ—–Š‘”‹–‹‡•ǡ™Š‡–Š‡–‡Ž‡š…‘‡…–‹‘‹•ϐ‹ƒŽŽ›…Ž‘•‡†ǡ–Š‡”‡ˆ—†
•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡‘ˆ–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ‘—–‹•”‡ˆ—†‡†Ǥ
ȋš‹šȌ ‘’‡•ƒ–‹‘’ƒ›ƒ„Ž‡ƒ•ƒ”‡•—Ž–‘ˆ‡‰Ž‹‰‡…‡‹…ƒ””›‹‰‘ƒ„—•‹‡••‘”–‡”‹ƒ–‹‘‘ˆƒ‡’Ž‘›‡‡ǡ
†‹”‡…–‘”‘”ƒ‰‡–Ǥ
ȋššȌ ‘’‡•ƒ–‹‘–‘ƒ‡’Ž‘›‡‡ˆ‘”‹Œ—”›•—•–ƒ‹‡†‘”ƒ……‹†‡–‡–™‹–Š™Š‹Ž‡‘†—–›Ǥ
ȋšš‹Ȍ ‘›ƒŽ–›’ƒ‹†ˆ‘”‹‹‰ǡ’ƒ–‡–•‘”…‘’›”‹‰Š–•Ǥ
ȋšš‹‹Ȍ •—”ƒ…‡ ’”‡‹—•ǣ ”‡‹— ˆ‘” ‹•—”ƒ…‡ ‘ˆ „—‹Ž†‹‰ǡ ’Žƒ–ǡ ƒ…Š‹‡”›ǡ ˆ—”‹–—”‡ǡ •–‘… ‘” •–‘”‡• ƒ”‡
ƒŽŽ‘™ƒ„Ž‡—†‡”•’‡…‹ϐ‹…•‡…–‹‘•ǡ‡Ǥ‰Ǥǡ’”‡‹—’ƒ‹†„›ƒ„—•‹‡••ƒ—†‡”ƒ’‘Ž‹…›‹•—”‹‰‹–•‡’Ž‘›‡‡•
‘”‡š’‡”–•ƒ‰ƒ‹•–†‡ƒ–Š‘”‹Œ—”›ǡ‘”‹•—”‹‰–Š‡‡’Ž‘›‡”ƒ‰ƒ‹•–Ž‹ƒ„‹Ž‹–›ˆ‘”…‘’‡•ƒ–‹‘‹”‡•’‡…–‘ˆ
ƒ……‹†‡–•–‘‹–•™‘”‡‘”ƒ‰ƒ‹•–Ž‘••‘ˆ–”ƒ†‹‰Ž‹…‡…‡Ǥ
ȋšš‹‹‹Ȍ ‡ƒŽ–›’ƒ‹†„›–Š‡ƒ••‡••‡‡ˆ‘”•ƒ˜‹‰ˆ”‘…‘ϐ‹•…ƒ–‹‘‘ˆ–Š‡‰‘‘†•™Š‹…ŠŠ‡Šƒ•’—”…Šƒ•‡†ˆ”‘ƒ–Š‹”†Ǧ
’ƒ”–›™‹–Š‘—–‘™‹‰–Šƒ––Š‡›Šƒ†„‡‡‹ŽŽ‡‰ƒŽŽ›‹’‘”–‡†Ǥ
ȋšš‹˜Ȍ ‡•‹‘ǡ‰”ƒ–—‹–›‘”‘–Š‡”˜‘Ž—–ƒ”›’ƒ›‡–ƒ†‡–‘–Š‡‡’Ž‘›‡‡•ƒ”‡†‡†—…–‹„Ž‡„—–ƒ‰”ƒ–—‹–›’ƒ‹†–‘ƒ
•‹‰Ž‡‡’Ž‘›‡‡™Š‡‹–™ƒ•‘––Š‡’”ƒ…–‹…‡‘ˆ–Š‡„—•‹‡••™ƒ•–”‡ƒ–‡†ƒ•†‹•ƒŽŽ‘™ƒ„Ž‡‡š’‡•‡Ǥ–Š‡
•ƒ‡™ƒ›˜‘Ž—–ƒ”›’‡•‹‘•ƒ†Ž—’•—’ƒ›‡–•ƒ†‡„›ƒ…‘’ƒ›–‘‹–•‡’Ž‘›‡‡•‘‹–•™‹†‹‰
—’™‡”‡‘–ƒŽŽ‘™‡†Ǥ
ȋšš˜Ȍ ‘ƒϔ‹†‡‡š’‡†‹–—”‡‘ˆƒ”‡˜‡—‡ƒ–—”‡‹…—””‡†ˆ‘”–Š‡™‡Žˆƒ”‡‘ˆ‡’Ž‘›‡‡•‘‹–•™‹†‹‰—’™ƒ•‘–
ƒŽŽ‘™‡†Ǥ
ȋšš˜‹Ȍ š…‡••‹˜‡’”‹…‡’ƒ‹†‘—–‘ˆ‡š–”ƒ…‘‡”…‹ƒŽ…‘•‹†‡”ƒ–‹‘••ŠƒŽŽ„‡†‹•ƒŽŽ‘™‡†Ǥ
ȋšš˜‹‹Ȍ—’ƒ‹†„›–Š‡ƒ••‡••‡‡ƒ•ƒ•—”‡–›™Š‡‹–‹•‘–’ƒ”–‘ˆŠ‹•„—•‹‡•••ŠƒŽŽ„‡†‹•ƒŽŽ‘™‡†Ǥ
ȋšš˜‹‹‹Ȍ”‡•‡–• ‰‹˜‡ –‘ ‡’Ž‘›‡‡• „› ™ƒ› ‘ˆ ‰‹ˆ– ƒ† ‘– ƒ• ’‡”“—‹•‹–‡• ˆ‘” •‡”˜‹…‡• ”‡†‡”‡†ǡ •ŠƒŽŽ „‡
†‹•ƒŽŽ‘™‡†Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͳͷ

‡”–ƒ‹ŽŽ‘™ƒ„Ž‡‘••‡•
‘••‡•™Š‹…Šƒ”‡†‹”‡…–Ž›‹…‹†‡–ƒŽ–‘–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘‘ˆ–Š‡ƒ••‡••‡‡ƒ”‡ƒŽŽ‘™ƒ„Ž‡Ǥ ‘ŽŽ‘™‹‰ƒ”‡•‘‡
‡šƒ’Ž‡•‘ˆ•—…ŠŽ‘••‡•ǣ
ͳǤ ‘„„‡”›‘”ƒ…‘‹–›ǣ‘••…ƒ—•‡†„›”‘„„‡”›‘”†ƒ…‘‹–›‹•‘–†‡†—…–‹„Ž‡Ǥ—–ǡ‹ˆ‹–‹•‹…‹†‡–ƒŽ–‘„—•‹‡••‹–
™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘ƒ†–Š‹•†‡’‡†•—’‘–Š‡•’‡…‹ϐ‹……‹”…—•–ƒ…‡•ƒ†…‘†‹–‹‘•Ǥ ‘”‡šƒ’Ž‡ǡ
‹ˆ…ƒ•Š‹••‡–ˆ‘”†‹•„—”•‡‡–ƒ–†‹ˆˆ‡”‡–…‡–‡”•„›ƒ•—‰ƒ”ˆƒ…–‘”›‹”—”ƒŽƒ”‡ƒǡ‹–‹•‹…‹†‡–ƒŽ–‘„—•‹‡••
ƒ†‹•ǡ–Š‡”‡ˆ‘”‡ǡƒŽŽ‘™‡†Ǥ›Ž‘••†—‡–‘”‘„„‡”›‹ƒ„ƒ™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•–Š‡„ƒ‹•—†‡”ƒ‘„Ž‹‰ƒ–‹‘
–‘ƒ‹–ƒ‹•‘‡…ƒ•Š‘—–•‹†‡–Š‡•–‘”‡”‘‘ˆ‘”’ƒ›‡–•Ǥ
ʹǤ „‡œœŽ‡‡–ǡŠ‡ˆ–ǡ‡–…ǤǣŠ‡Ž‘••‘ˆ‘‡›†—‡–‘‡„‡œœŽ‡‡–„›ƒ‡’Ž‘›‡‡Šƒ†Ž‹‰–Š‡ˆ—†•‘ˆ
–Š‡„—•‹‡••™Š‹Ž‡†‹•…Šƒ”‰‹‰Š‹•‘ˆϐ‹…‹ƒŽ†—–‹‡•‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ–‹•†‡†—…–‹„Ž‡™Š‡†‹•…‘˜‡”‡†Ǥ
Š‡ƒ‡’Ž‘›‡‡‰‘‡•–‘„ƒ–‘†‡’‘•‹––Š‡…ƒ•Š‘”–ƒ‡•…ƒ•Š™‹–ŠŠ‹ˆ‘”†‹•„—”•‡‡–ƒ†Š‡–ƒ‡•
ƒ™ƒ›–Š‡‘‡›ˆ‘”Š‹•‘™—•‡ǡ‡˜‡–Š‡ǡ–Š‡Ž‘••‹•ƒŽŽ‘™ƒ„Ž‡ǤŠ‡ˆ–„›ƒ…ƒ•Š‹‡”ǡ™Š‘‹•‹…Šƒ”‰‡‘ˆ…ƒ•Š‹•
ƒŽ•‘ƒƒŽŽ‘™ƒ„Ž‡Ž‘••Ǥ–Š‡ˆ–…‘‹––‡†‡‹–Š‡”„›ƒ‡’Ž‘›‡‡‘”„›•‘‡‘‡‡Ž•‡„›„”‡ƒ‹‰‘’‡‹–‘–Š‡
„—•‹‡••’”‡‹•‡•ƒˆ–‡”‘ˆϐ‹…‡Š‘—”•ǡ‹•ƒŽ•‘ƒŽŽ‘™ƒ„Ž‡Ǥ
͵Ǥ ‘•• †—‡ –‘ ‘Ǧ”‡…‘˜‡”› ‘ˆ †˜ƒ…‡•ǣ ˆ ‹– ‹• –Š‡ ’”ƒ…–‹…‡ ‹ ƒ „—•‹‡•• –‘ ‰‹˜‡ ƒ†˜ƒ…‡ ‘‡› –‘ –Š‡
•—’’Ž‹‡”•ƒ†‹ˆ–Š‡•—’’Ž‹‡”‡‹–Š‡”•—’’Ž‹‡•–Š‡‘”†‡”‘””‡ˆ—†•–Š‡ƒ†˜ƒ…‡‘‡›ǡ–Š‡Ž‘•••—•–ƒ‹‡†„›
–Š‡ƒ••‡••‡‡‹•‹…‹†‡–ƒŽ–‘„—•‹‡••ƒ†‹•ǡ–Š‡”‡ˆ‘”‡ǡƒŽŽ‘™ƒ„Ž‡Ǥ
ȏͶͲȐ
Š‡ˆ‘ŽŽ‘™‹‰ ‡š’‡•‡••ŠƒŽŽ ‘– „‡ †‡†—…–‡† ‹ …‘’—–‹‰ –Š‡ ‹…‘‡…Šƒ”‰‡ƒ„Ž‡ —†‡”–Š‡ Š‡ƒ†Dz’”‘ϐ‹–• ƒ†
‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ǣ
Ȉ –‡”‡•–ǡ”‘›ƒŽ–›ǡˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒ‘”†‹ƒ–‘ƒ‘Ǧ‡•‹†‡–ǣ†‡”
‡…–‹‘ͶͲȋƒȌȋ‹Ȍǡ†‡†—…–‹‘‹• ‘– ƒŽŽ‘™‡†‹”‡•’‡…– ‘ˆƒ› ‹–‡”‡•–ǡ ”‘›ƒŽ–›ǡ ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ •‡”˜‹…‡•‘”
‘–Š‡”•—…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡ™Š‹…Š‹•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒ‘”‹†‹ƒ–‘ƒ‘Ǧ”‡•‹†‡–
‘Ǧ…‘”’‘”ƒ–‡‘”–‘ƒˆ‘”‡‹‰…‘’ƒ›ƒ†‘™Š‹…Š–ƒšŠƒ•‘–„‡‡†‡†—…–‡†‘”ƒˆ–‡”†‡†—…–‹‘ǡŠƒ•‘–
„‡‡’ƒ‹†ƒ••’‡…‹ϐ‹‡†‹•—„•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻǤ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡‹”‡•’‡…–‘ˆƒ›•—…Š•—ǡ–ƒšŠƒ•„‡‡†‡†—…–‡†‹ƒ›•—„•‡“—‡–›‡ƒ”‘”Šƒ•„‡‡
†‡†—…–‡†‹–Š‡’”‡˜‹‘—•›‡ƒ”„—–’ƒ‹†ƒˆ–‡”–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻǡ•—…Š•—
•ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹…‘’—–‹‰–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š–ƒšŠƒ•„‡‡’ƒ‹†Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡ƒƒ••‡••‡‡ˆƒ‹Ž•–‘†‡†—…––Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡–ƒš‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ǧ‘ƒ›•—…Š•—„—–‹•‘–†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–—†‡”–Š‡
ϐ‹”•–’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͲͳǡ–Š‡ǡˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••—„Ǧ…Žƒ—•‡ǡ‹–•ŠƒŽŽ„‡†‡‡‡†–Šƒ–
–Š‡ƒ••‡••‡‡Šƒ•†‡†—…–‡†ƒ†’ƒ‹†–Š‡–ƒš‘•—…Š•—‘–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ”‡–—”‘ˆ‹…‘‡„›–Š‡
’ƒ›‡‡”‡ˆ‡””‡†–‘‹–Š‡•ƒ‹†’”‘˜‹•‘Ǥ
 ‹…‡–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡„›–Š‡’ƒ›‡‡‹•–ƒ‡–‘„‡–Š‡†ƒ–‡‘™Š‹…Š–Š‡’ƒ›‡”Šƒ•
†‡†—…–‡†–ƒšƒ–•‘—”…‡ƒ†’ƒ‹†–Š‡•ƒ‡ǡ•—…Š‡š’‡†‹–—”‡Ȁ’ƒ›‡–‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡’ƒ›‡”Šƒ•ˆƒ‹Ž‡†
–‘†‡†—…––ƒšƒ–•‘—”…‡•ŠƒŽŽ„‡†‹•ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͶͲȋƒȌȋ‹Ȍ‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡•ƒ‹†‡š’‡†‹–—”‡‹•
‹…—””‡†Ǥ‘™‡˜‡”ǡ•—…Š‡š’‡†‹–—”‡™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‹–Š‡•—„•‡“—‡–›‡ƒ”‹™Š‹…Š–Š‡”‡–—”
‘ˆ‹…‘‡‹•ˆ—”‹•Š‡†„›–Š‡’ƒ›‡‡ǡ•‹…‡–ƒš‹•†‡‡‡†–‘Šƒ˜‡„‡‡†‡†—…–‡†ƒ†’ƒ‹†„›–Š‡’ƒ›‡”‹–Šƒ–
›‡ƒ”Ǥ
Ȉ ‘–†‡†—…–‡†‘ƒ›•—’ƒ›ƒ„Ž‡–‘ƒ‡•‹†‡–ǣ†‡”•‡…–‹‘ͶͲȋƒȌȋ‹ƒȌǡ͵ͲΨ‘ˆƒ›•—’ƒ›ƒ„Ž‡–‘
ƒ”‡•‹†‡–‘™Š‹…Š–ƒš‹•†‡†—…–‹„Ž‡ƒ–•‘—”…‡—†‡”Šƒ’–‡”ƒ†•—…Š–ƒšŠƒ•‘–„‡‡†‡†—…–‡†‘”ǡ
ƒˆ–‡”†‡†—…–‹‘ǡŠƒ•‘–„‡‡’ƒ‹†‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻǤ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡‹”‡•’‡…–‘ˆƒ›•—…Š•—ǡ–ƒšŠƒ•„‡‡†‡†—…–‡†‹ƒ›•—„•‡“—‡–›‡ƒ”‘”Šƒ•„‡‡
†‡†—…–‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”„—–’ƒ‹†ƒˆ–‡”–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻǡ͵ͲΨ
‘ˆ•—…Š•—•ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹…‘’—–‹‰–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š–ƒš
Šƒ•„‡‡’ƒ‹†Ǥ
 ʹͳ͸ Lesson 4 Ȉ EP-TL

 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡ƒƒ••‡••‡‡ˆƒ‹Ž•–‘†‡†—…––Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡–ƒš‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ǧ‘ƒ›•—…Š•—„—–‹•‘–†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–—†‡”–Š‡
ϐ‹”•–’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͲͳǡ–Š‡ǡˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••—„Ǧ…Žƒ—•‡ǡ‹–•ŠƒŽŽ„‡†‡‡‡†–Šƒ–
–Š‡ƒ••‡••‡‡Šƒ•†‡†—…–‡†ƒ†’ƒ‹†–Š‡–ƒš‘•—…Š•—‘–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ”‡–—”‘ˆ‹…‘‡„›–Š‡
’ƒ›‡‡”‡ˆ‡””‡†–‘‹–Š‡•ƒ‹†’”‘˜‹•‘Ǥ
 ‘”šƒ’Ž‡ǣƒš‘”‡–’ƒ‹†–‘”Ǥǡƒ”‡•‹†‡–ǡŠƒ•„‡‡†‡†—…–‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǡ–Š‡
•ƒ‡Šƒ•–‘„‡’ƒ‹†„›͵ͳ•– —Ž›Ȁ͵ͳ•–…–‘„‡”ʹͲʹʹǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ–Š‡”™‹•‡ǡ͵ͲΨ‘ˆ”‡–’ƒ‹†™‘—Ž†
„‡†‹•ƒŽŽ‘™‡†‹…‘’—–‹‰–Š‡‹…‘‡ˆ‘”ǤǤʹͲʹʹǦʹ͵Ǥˆ‹”‡•’‡…–‘ˆ•—…Š”‡–ǡ–ƒš†‡†—…–‡††—”‹‰–Š‡ǤǤ
ʹͲʹͳǦʹʹŠƒ•„‡‡’ƒ‹†ƒˆ–‡”͵ͳ•– —Ž›Ȁ͵ͳ•–…–‘„‡”ǡʹͲʹʹǡ͵ͲΨ‘ˆ•—…Š”‡–™‘—Ž†„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘
‹–Š‡›‡ƒ”‘ˆ’ƒ›‡–Ǥ
 ‹…‡–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡„›–Š‡’ƒ›‡‡‹•–ƒ‡–‘„‡–Š‡†ƒ–‡‘™Š‹…Š–Š‡’ƒ›‡”Šƒ•
†‡†—…–‡†–ƒšƒ–•‘—”…‡ƒ†’ƒ‹†–Š‡•ƒ‡ǡ͵ͲΨ‘ˆ•—…Š‡š’‡†‹–—”‡Ȁ’ƒ›‡–‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡’ƒ›‡”
Šƒ•ˆƒ‹Ž‡†–‘†‡†—…––ƒšƒ–•‘—”…‡•ŠƒŽŽ„‡†‹•ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͶͲȋƒȌȋ‹ƒȌ‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡•ƒ‹†
‡š’‡†‹–—”‡‹•‹…—””‡†Ǥ‘™‡˜‡”ǡ͵ͲΨ‘ˆ•—…Š‡š’‡†‹–—”‡™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‹–Š‡•—„•‡“—‡–
›‡ƒ”‹™Š‹…Š–Š‡”‡–—”‘ˆ‹…‘‡‹•ˆ—”‹•Š‡†„›–Š‡’ƒ›‡‡ǡ•‹…‡–ƒš‹•†‡‡‡†–‘Šƒ˜‡„‡‡†‡†—…–‡†ƒ†
’ƒ‹†„›–Š‡’ƒ›‡”‹–Šƒ–›‡ƒ”Ǥ
Ȉ ƒ–‡‘”ƒšƒ‹†‘”‘ϐ‹–•ǣ†‡”‡…–‹‘ͶͲȋƒȌȋ‹‹Ȍǡƒ›•—’ƒ‹†„›–Š‡ƒ••‡••‡‡‘ƒ……‘—–‘ˆƒ›–ƒš‘”
”ƒ–‡Ž‡˜‹‡†‘’”‘ϐ‹–•‘–Š‡„ƒ•‹•‘ˆ‘”‹’”‘’‘”–‹‘–‘–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ
™‘—Ž†„‡†‹•ƒŽŽ‘™‡†‹ˆ—ŽŽǤ ‘”‡šƒ’Ž‡ǡ‹…‘‡Ǧ–ƒšǡˆ‘”‡‹‰‹…‘‡Ǧ–ƒš‘”ƒ’”‘ˆ‡••‹‘ƒŽ–ƒšŽ‡˜‹‡†—†‡”
–Š‡—‹…‹’ƒŽ…–‘’‡”•‘•™Š‘‡š‡”…‹•‡ƒ’”‘ˆ‡••‹‘ǡ–”ƒ†‡‘”…ƒŽŽ‹‰™‹–Š‹–Š‡—‹…‹’ƒŽŽ‹‹–•ŠƒŽŽ„‡
†‹•ƒŽŽ‘™‡†Ǥ
 š’Žƒƒ–‹‘ͳ–‘•—„Ǧ…Žƒ—•‡ȋ‹‹Ȍ‘ˆ…Žƒ—•‡ȋƒȌ‘ˆ‡…–‹‘ͶͲ…Žƒ”‹ϐ‹‡•–Šƒ–ƒ›•—’ƒ‹†‘—–•‹†‡†‹ƒƒ†‡Ž‹‰‹„Ž‡
ˆ‘””‡Ž‹‡ˆ‘ˆ–ƒš—†‡”‡…–‹‘ͻͲ‘”†‡†—…–‹‘ˆ”‘–Š‡…‘‡ƒš’ƒ›ƒ„Ž‡—†‡”‡…–‹‘ͻͳ‹•‘–ƒŽŽ‘™ƒ„Ž‡
ƒ††‡‡‡†–‘Šƒ˜‡‡˜‡”„‡‡ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ†‡†—…–‹‘—†‡”‡…–‹‘ͶͲ‘ˆ–Š‡…‘‡ƒš…–Ǥ‘™‡˜‡”ǡ
–Š‡–ƒš’ƒ›‡”•™‹ŽŽ…‘–‹—‡–‘„‡‡Ž‹‰‹„Ž‡ˆ‘”–ƒš…”‡†‹–‹”‡•’‡…–‘ˆ…‘‡ƒš’ƒ‹†‹ƒˆ‘”‡‹‰…‘—–”›‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͻͲ‘”‡…–‹‘ͻͳƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
 š’Žƒƒ–‹‘ʹ’”‘˜‹†‡•–Šƒ–ƒ›•—’ƒ‹†‘—–•‹†‡†‹ƒƒ†‡Ž‹‰‹„Ž‡ˆ‘””‡Ž‹‡ˆ‘ˆ–ƒš—†‡”‡™‡…–‹‘ͻͲ
™‹ŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹…‘’—–ƒ–‹‘‘ˆ’”‘ϐ‹–ƒ†‰ƒ‹•ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘•Ǥ
 †‡”•‡…–‹‘ͶͲȋƒȌȋ‹‹„Ȍǡƒ›ƒ‘—–’ƒ‹†„›™ƒ›‘ˆˆ‡‡ǡ…Šƒ”‰‡ǡ‡–…Ǥǡ™Š‹…Š‹•Ž‡˜‹‡†‡š…Ž—•‹˜‡Ž›‘ǡ‘”ƒ›
ƒ‘—–ƒ’’”‘’”‹ƒ–‡†ǡ†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡˆ”‘ƒ–ƒ–‡
‘˜‡”‡–—†‡”–ƒ‹‰ǡ„›–Š‡–ƒ–‡
‘˜‡”‡–ǡ
•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘ˆ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–ƒ–‹‘‘ˆ‹…‘‡‘ˆ•—…Š—†‡”–ƒ‹‰•—†‡”–Š‡
Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ
 –ƒ–‡
‘˜‡”‡–—†‡”–ƒ‹‰‹…Ž—†‡•Ȃ
ȋƒȌ …‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ›…–‘ˆ–Š‡–ƒ–‡
‘˜‡”‡–Ǣ
ȋ„Ȍ …‘’ƒ›‹™Š‹…Š‘”‡–ŠƒͷͲΨ‘ˆ–Š‡’ƒ‹†—’‡“—‹–›•Šƒ”‡…ƒ’‹–ƒŽ‹•Š‡Ž†„›–Š‡–ƒ–‡
‘˜‡”‡–Ǣ
ȋ…Ȍ …‘’ƒ›‹™Š‹…Š‘”‡–ŠƒͷͲΨ‘ˆ–Š‡’ƒ‹†—’‡“—‹–›•Šƒ”‡…ƒ’‹–ƒŽ‹•Š‡Ž†•‹‰Ž›‘”Œ‘‹–Ž›„›ȋƒȌ
‘”ȋ„ȌǢ
ȋ†Ȍ  …‘’ƒ› ‘” …‘”’‘”ƒ–‹‘ ‹ ™Š‹…Š –Š‡ –ƒ–‡
‘˜‡”‡– Šƒ• –Š‡ ”‹‰Š– –‘ ƒ’’‘‹– –Š‡ ƒŒ‘”‹–› ‘ˆ
†‹”‡…–‘”•‘”–‘…‘–”‘Ž–Š‡ƒƒ‰‡‡–‘”’‘Ž‹…›†‡…‹•‹‘•
 ƒ—–Š‘”‹–›ǡƒ„‘ƒ”†‘”ƒ‹•–‹–—–‹‘‘”ƒ„‘†›‡•–ƒ„Ž‹•Š‡†‘”…‘•–‹–—–‡†„›‘”—†‡”ƒ›…–‘ˆ–Š‡–ƒ–‡

‘˜‡”‡–‘”‘™‡†‘”…‘–”‘ŽŽ‡†„›–Š‡–ƒ–‡
‘˜‡”‡–Ǥ
Ȉ ƒŽƒ”‹‡• ȏ‡…–‹‘ ͶͲƒȋ‹‹‹ȌȐǣ › ’ƒ›‡– ™Š‹…Š ‹• …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† Dz•ƒŽƒ”‹‡•dz ‹ˆ ‹– ‹• ’ƒ›ƒ„Ž‡
‘—–•‹†‡†‹ƒ‘”–‘ƒ‘Ǧ”‡•‹†‡–ƒ†‹ˆ–Š‡–ƒšŠƒ•‘–„‡‡’ƒ‹†–Š‡”‡‘‘”†‡†—…–‡†–Š‡”‡‘—†‡”Šƒ’–‡”
‘ˆ–Š‡…–Ǥ
Ȉ ƒ›‡– –‘ ”‘˜‹†‡– —†• ‡–…Ǥ ȏ‡…–‹‘ ͶͲƒȋ‹˜ȌȐǣ › ’ƒ›‡– –‘ ƒ ”‘˜‹†‡– —† ‘” ‘–Š‡” ˆ—†
‡•–ƒ„Ž‹•Š‡†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆ‡’Ž‘›‡‡•‘ˆ–Š‡ƒ••‡••‡‡™‘—Ž†„‡†‹•ƒŽŽ‘™‡†‹…ƒ•‡•™Š‡”‡–Š‡ƒ••‡••‡‡
ȋ‡’Ž‘›‡”Ȍ Šƒ• ‘– ƒ†‡ ‡ˆˆ‡…–‹˜‡ ƒ””ƒ‰‡‡–• –‘ •‡…—”‡ †‡†—…–‹‘ ‘ˆ –ƒš ƒ– •‘—”…‡ ˆ”‘ ƒ› ’ƒ›‡–
ƒ†‡ˆ”‘–Š‡ˆ—†™Š‹…Šƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†Dz•ƒŽƒ”‹‡•dz‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡•Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͳ͹

Ȉ ƒ›‡–‘ˆ–ƒš‘‘Ǧ‘‡–ƒ”›’‡”“—‹•‹–‡•ȏ‡…–‹‘ͶͲƒȋ˜ȌȐǣ…ƒ•‡‘ˆƒ‡’Ž‘›‡‡ǡ†‡”‹˜‹‰‹…‘‡
‹–Š‡ƒ–—”‡‘ˆ’‡”“—‹•‹–‡•ȋ‘–Š‡”–Šƒ‘‡–ƒ”›’ƒ›‡–•Ȍǡ–Š‡ƒ‘—–‘ˆ–ƒš‘•—…Š‹…‘‡’ƒ‹†„›Š‹•
‡’Ž‘›‡”‹•‡š‡’–ˆ”‘–ƒš‹–Š‡Šƒ†•‘ˆ–Šƒ–‡’Ž‘›‡‡Ǥ
 ‘””‡•’‘†‹‰Ž›ǡ •—…Š ’ƒ›‡– ‹• ‘– ƒŽŽ‘™‡† ƒ• †‡†—…–‹‘ ˆ”‘ –Š‡ ‹…‘‡ ‘ˆ –Š‡ ‡’Ž‘›‡”Ǥ Š—•ǡ –Š‡
’ƒ›‡–‘ˆ–ƒš‘’‡”“—‹•‹–‡•„›ƒ‡’Ž‘›‡”‘„‡ŠƒŽˆ‘ˆ‡’Ž‘›‡‡™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš‹–Š‡Šƒ†•‘ˆ
‡’Ž‘›‡‡„—–™‹ŽŽ‘–„‡ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡”Ǥ
Ȉ ƒ›‡––‘ƒ”–‡”•ǣŠ‡’”‘˜‹•‹‘‘ˆ‡…–‹‘ͶͲȋ„Ȍ‹–Š‡…ƒ•‡‘ˆƒϐ‹”™Š‹…Š‹•ƒ••‡••ƒ„Ž‡ƒ••—…Š‘”
–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–••ŠƒŽŽ‘–„‡†‡†—…–‡†‹…‘’—–‹‰–Š‡„—•‹‡••‹…‘‡‘ˆ–Š‡ ‹”Ȁǣ
ȋƒȌ ƒ›‡––‘‘Ǧ™‘”‹‰’ƒ”–‡”ǣ›’ƒ›‡–‘ˆ•ƒŽƒ”›ǡ„‘—•ǡ…‘‹••‹‘‘””‡—‡”ƒ–‹‘–‘
‘Ǧ™‘”‹‰’ƒ”–‡”Ǥ
ȋ„Ȍ ‡—‡”ƒ–‹‘’ƒ‹†–‘ƒ™‘”‹‰’ƒ”–‡”‘–ƒ—–Š‘”‹œ‡†„›†‡‡†ǣ‡—‡”ƒ–‹‘’ƒ‹†–‘ƒ™‘”‹‰
’ƒ”–‡”‘”‹–‡”‡•–’ƒ‹†–‘ƒ›’ƒ”–‡”™Š‹…Š‹•‘–ƒ—–Š‘”‹•‡†„›‘”‘–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡–‡”•
‘ˆ–Š‡’ƒ”–‡”•Š‹’†‡‡†Ǥ
ȋ…Ȍ ›”‡—‡”ƒ–‹‘’ƒ‹†–‘ƒ™‘”‹‰’ƒ”–‡”‘”‹–‡”‡•–’ƒ‹†–‘ƒ›’ƒ”–‡”™Š‹…Š‹•ƒ—–Š‘”‹•‡†„›‘”
‹•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡–‡”•‘ˆ–Š‡’ƒ”–‡”•Š‹’†‡‡†„—–™Š‹…Š”‡Žƒ–‡•–‘ƒ›’‡”‹‘†ˆƒŽŽ‹‰’”‹‘”–‘
–Š‡†ƒ–‡‘ˆ•—…Š’ƒ”–‡”•Š‹’†‡‡†Ǥ
ȋ†Ȍ –‡”‡•– ’ƒ‹† ‹ ‡š…‡•• ‘ˆ ͳʹΨǣ ƒ› ‹–‡”‡•– ™Š‹…Š ‹• ’ƒ‹† ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ –‡”• ‘ˆ –Š‡
’ƒ”–‡”•Š‹’†‡‡†ƒ†”‡Žƒ–‡•–‘ƒ›’‡”‹‘†ˆƒŽŽ‹‰ƒˆ–‡”–Š‡†ƒ–‡‘ˆ•—…Š’ƒ”–‡”•Š‹’†‡‡†„—–™Š‹…Š‹•
‹‡š…‡••‘ˆ•‹’Ž‡‹–‡”‡•–̷ͳʹΨ’ǤƒǤǤ
ȋ‡Ȍ ƒ›”‡—‡”ƒ–‹‘–‘ƒ™‘”‹‰’ƒ”–‡”™Š‹…Š‹•ƒ—–Š‘”‹•‡†„›ƒ†‹•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡–‡”•‘ˆ
–Š‡ ’ƒ”–‡”•Š‹’ †‡‡† ƒ† ‹ ”‡Žƒ–‹‘ –‘ ƒ› ’‡”‹‘† ˆƒŽŽ‹‰ ƒˆ–‡” –Š‡ †ƒ–‡ ‘ˆ ’ƒ”–‡”•Š‹’ †‡‡† ‹• ƒ
ƒŽŽ‘™ƒ„Ž‡ †‡†—…–‹‘ •—„Œ‡…– Š‘™‡˜‡”ǡ –‘ –Š‡ …‘†‹–‹‘ –Šƒ– –Š‡ ƒš‹— ƒ‘—– ‘ˆ •—…Š ’ƒ›‡–
ƒ†‡–‘ƒŽŽ–Š‡’ƒ”–‡”•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”•Š‘—Ž†‘–‡š…‡‡†–Š‡Ž‹‹–•‰‹˜‡„‡Ž‘™ǣ

—ƒ–—‘ˆ‘‘”‘ϐ‹– ‘—–
ȋƒȌ ’ –‘ •Ǥ ͵ǡͲͲǡͲͲͲ ‘” ‹ …ƒ•‡ •Ǥ ͳǡͷͲǡͲͲͲ ‘” ͻͲΨ ‘ˆ –Š‡ ‘‘
‘ˆƒŽ‘•• ’”‘ϐ‹–ǡ™Š‹…Š‡˜‡”‹•‘”‡
ȋ„Ȍ‘–Š‡„ƒŽƒ…‡ ͸ͲΨ‘ˆ„‘‘’”‘ϐ‹–

 Dz‘”‹‰ƒ”–‡”dzǡ‡ƒ•ƒ‹†‹˜‹†—ƒŽ™Š‘‹•ƒ…–‹˜‡Ž›‡‰ƒ‰‡†‹…‘†—…–‹‰–Š‡ƒˆˆƒ‹”•‘ˆ–Š‡„—•‹‡••‘”
’”‘ˆ‡••‹‘‘ˆ–Š‡ϐ‹”‘ˆ™Š‹…ŠŠ‡‹•ƒ’ƒ”–‡”Ǥ
 Dz‘‘”‘ϐ‹–dz‡ƒ•–Š‡‡–’”‘ϐ‹–ǡƒ••Š‘™‹–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ǡ
…‘’—–‡†‹–Š‡ƒ‡”Žƒ‹††‘™‹…Šƒ’–‡”Ǧȋ‹Ǥ‡Ǥǡ‡…–‹‘•ʹͺ–‘ͶͶȌƒ•‹…”‡ƒ•‡†„›–Š‡ƒ‰‰”‡‰ƒ–‡
ƒ‘—–‘ˆ”‡—‡”ƒ–‹‘’ƒ‹†‘”’ƒ›ƒ„Ž‡–‘ƒŽŽ–Š‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”‹ˆ•—…Šƒ‘—–Šƒ•„‡‡†‡†—…–‡†
™Š‹Ž‡…‘’—–‹‰–Š‡‡–’”‘ϐ‹–Ǥ
 ‘”šƒ’Ž‡ǣϐ‹”Šƒ•’ƒ‹†•ǤͺŽƒŠ•ƒ•”‡—‡”ƒ–‹‘–‘‹–•’ƒ”–‡”•ˆ‘”–Š‡ǤǤʹͲʹͳǦʹʹǡ‹ƒ……‘”†ƒ…‡
™‹–Š‹–•’ƒ”–‡”•Š‹’†‡‡†ǡƒ†‹–Šƒ•ƒ„‘‘’”‘ϐ‹–‘ˆ•ǤͳͲŽƒŠǤ‘™–Š‡ƒŽŽ‘™ƒ„Ž‡”‡—‡”ƒ–‹‘…ƒŽ…—Žƒ–‡†
ƒ•’‡”–Š‡Ž‹‹–••’‡…‹ϐ‹‡†‹•‡…–‹‘ͶͲȋ„Ȍǣ
 ϐ‹”•–•Ǥ͵ŽƒŠ‘ˆ„‘‘’”‘ϐ‹–ȏ•Ǥ͵ǡͲͲǡͲͲͲέͻͲΨȐ  α•Ǥʹǡ͹ͲǡͲͲͲ
 „ƒŽƒ…‡•Ǥ͹ŽƒŠ‘ˆ„‘‘’”‘ϐ‹–ȏ•Ǥ͹ǡͲͲǡͲͲͲέ͸ͲΨȐ  α•ǤͶǡʹͲǡͲͲͲ
 ‘–ƒŽ        α•Ǥ͸ǡͻͲǡͲͲͲ
 ‘–Š‡‡š…‡••ƒ‘—–‘ˆ•ǤͳǡͳͲǡͲͲͲȋ‹Ǥ‡Ǥǡ•ǤͺǡͲͲǡͲͲͲȂ•Ǥ͸ǡͻͲǡͲͲͲȌ™‘—Ž†„‡†‹•ƒŽŽ‘™‡†ƒ•’‡”•‡…–‹‘
ͶͲȋ„Ȍ
Ȉ ƒ›‡–„›•Ȁ•ȏ‡…–‹‘ͶͲȋ„ƒȌȐǣ–Š‡…ƒ•‡‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•
ȋ‘–Š‡”–Šƒƒ…‘’ƒ›‘”ƒ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›‘”ƒ•‘…‹‡–›”‡‰‹•–‡”‡†—†‡”–Š‡‘…‹‡–‹‡•‡‰‹•–”ƒ–‹‘
…–ǡ ͳͺ͸Ͳǡ ‘” —†‡” ƒ› Žƒ™ …‘””‡•’‘†‹‰ –‘ –Šƒ– …– ‹ ˆ‘”…‡ ‹ ƒ› ’ƒ”– ‘ˆ †‹ƒȌ ƒ› ’ƒ›‡– ‘ˆ
‹–‡”‡•–ǡ •ƒŽƒ”›ǡ „‘—•ǡ …‘‹••‹‘ ‘” ”‡—‡”ƒ–‹‘ǡ „› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†ǡ ƒ†‡ „› •—…Š
ƒ••‘…‹ƒ–‹‘ ‘” „‘†› –‘ ‹–• ‡„‡” •ŠƒŽŽ ‘– „‡ ƒŽŽ‘™‡† ƒ• ƒ †‡†—…–‹‘‹ …‘’—–‹‰–Š‡‹…‘‡‘ˆ
•—…Šƒ••‘…‹ƒ–‹‘‘”„‘†›Ǥ
 ʹͳͺ Lesson 4 Ȉ EP-TL

•’‡”‡š’Žƒƒ–‹‘ͳ–‘…Žƒ—•‡ȋ„ƒȌ‘ˆ‡…–‹‘ͶͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ™Š‡”‡‹–‡”‡•–‹•’ƒ‹†„›–Š‡ƒ••‘…‹ƒ–‹‘‘”
„‘†› –‘ ƒ› ‡„‡” –Š‡”‡‘ˆǡ ™Š‘ Šƒ• ƒŽ•‘ ’ƒ‹† ‹–‡”‡•– –‘ –Š‡ ƒ••‘…‹ƒ–‹‘ ‘” „‘†›ǡ –Š‡ †‹•ƒŽŽ‘™ƒ…‡ •ŠƒŽŽ „‡
”‡•–”‹…–‡†–‘–Š‡ƒ‘—–’ƒ‹†„›–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›–‘–Š‡‡„‡”ǡƒˆ–‡”†‡†—…–‹‰–Š‡”‡ˆ”‘–Š‡ƒ‘—–’ƒ‹†
„›–Š‡‡„‡”–‘–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›Ǥ


ȋͳȌ ƒ›‡– –‘ ‡Žƒ–‹˜‡• ‘” ••‘…‹ƒ–‡• ȏ‡…–‹‘ ͶͲȋʹȌȐǣ ȋͳȌ Š‡”‡ –Š‡ ƒ••‡••‡‡ ‹…—”• ƒ› ‡š’‡†‹–—”‡ ‹
”‡•’‡…–‘ˆ™Š‹…Š’ƒ›‡–Šƒ•„‡‡‘”‹•–‘„‡ƒ†‡–‘ƒ›’‡”•‘•’‡…‹ϐ‹‡†„‡Ž‘™ƒ†–Š‡••‡••‹‰ˆϐ‹…‡”‹•‘ˆ
–Š‡‘’‹‹‘–Šƒ–•—…Š‡š’‡†‹–—”‡‹•‡š…‡••‹˜‡‘”—”‡ƒ•‘ƒ„Ž‡ǡŠƒ˜‹‰†—‡”‡‰ƒ”†–‘–Š‡
Ȉ ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•ǡ•‡”˜‹…‡•‘”ˆƒ…‹Ž‹–‹‡•ˆ‘”™Š‹…Š–Š‡’ƒ›‡–‹•ƒ†‡‘”
Ȉ –Š‡Ž‡‰‹–‹ƒ–‡‡‡†•‘ˆ–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘‘ˆ–Š‡ƒ••‡••‡‡‘”
Ȉ –Š‡„‡‡ϐ‹–†‡”‹˜‡†„›‘”ƒ……”—‹‰–‘Š‹–Š‡”‡ˆ”‘ǡ
 •‘—…Š‘ˆ–Š‡‡š’‡†‹–—”‡ƒ•‹•…‘•‹†‡”‡†–‘„‡‡š…‡••‹˜‡‘”—”‡ƒ•‘ƒ„Ž‡—•–„‡†‹•ƒŽŽ‘™‡†‹…‘’—–‹‰
–Š‡ƒ••‡••‡‡ǯ•‹…‘‡ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ‘™‡˜‡”–Š‡ƒ‘—–•‘†‹•ƒŽŽ‘™‡†™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•
‹…‘‡‹–Š‡Šƒ†•‘ˆ–Š‡”‡…‹’‹‡–ǤŠ‹••‡…–‹‘ƒ’’Ž‹‡•–‘‡š’‡†‹–—”‡‘Ž›Ǥ–‹•‘–ƒ––”ƒ…–‡†™Š‡
ƒ••‡••‡‡ƒ‡•ƒ•ƒŽ‡–‘•’‡…‹ϐ‹‡†’‡”•‘ƒ–ƒ’”‹…‡Ž‘™‡”–Šƒ‹–• ƒ‹”ƒ”‡–ƒŽ—‡Ǥ
‘‡•–‹…”ƒ•ˆ‡”’”‹…‹‰’”‘˜‹•‹‘•‘ˆƒ”Ž‡‰–Š’”‹…‹‰•ŠƒŽŽ‘–„‡ƒ’’Ž‹‡†–‘ƒ›‡š’‡†‹–—”‡‹”‡•’‡…–‘ˆ
™Š‹…Š’ƒ›‡–‹•ƒ†‡–‘ƒ”‡Žƒ–‡†’ƒ”–›…‘˜‡”‡†„›•‡…–‹‘ͶͲȋʹȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ǥ
Š‡•’‡…‹ϐ‹‡†’‡”•‘•ǡ–Š‡’ƒ›‡–•–‘™Š‘ƒ›ˆƒŽŽˆ‘”†‹•ƒŽŽ‘™ƒ…‡—†‡”–Š‹••‡…–‹‘ƒ”‡–Š‡ˆ‘ŽŽ‘™‹‰ǣ

••‡••‡‡ ’‡…‹ϐ‹‡† ‡”•‘

†‹˜‹†—ƒŽ
‘’ƒ›ǡϐ‹”ǡ
ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•
ƒǤƒ›”‡Žƒ–‹˜‡‘ˆ–Š‡‹†‹˜‹†—ƒŽƒ••‡••‡‡
„Ǥ›’‡”•‘™Š‘…ƒ””‹‡•‘ƒ„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ‹ˆ‹†‹˜‹†—ƒŽƒ••‡••‡‡‘”ƒ›‘ˆ
Š‹•”‡Žƒ–‹˜‡Šƒ•ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–‹–Š‡„—•‹‡••‘ˆ–Šƒ–’‡”•‘
ƒǤƒ›†‹”‡…–‘”‘ˆ–Š‡…‘’ƒ›ǡ’ƒ”–‡”‘ˆ–Š‡ϐ‹”ǡ‡„‡”‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”ˆƒ‹Ž›ǡ
‘”ƒ›”‡Žƒ–‹˜‡‘ˆ•—…Š†‹”‡…–‘”ǡ’ƒ”–‡”‘”‡„‡”
‘”ǤǤ „Ǥ…ƒ•‡‘ˆƒ…‘’ƒ›ƒ••‡••‡‡ǡƒ›‹†‹˜‹†—ƒŽ™Š‘Šƒ••—„•–ƒ–‹ƒŽ‹–‡”‡•–‹–Š‡
„—•‹‡••‘”’”‘ˆ‡••‹‘‘ˆ–Š‡…‘’ƒ›‘”ƒ›”‡Žƒ–‹˜‡‘ˆ•—…Š‹†‹˜‹†—ƒŽ
ŽŽ••‡••‡‡ ƒǤ›‡”•‘™Š‘Šƒ•ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–‹–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘‘ˆ–Š‡
ƒ••‡••‡‡‘”ƒ›”‡Žƒ–‹˜‡‘ˆ•—…Š‡”•‘

„Ǥ–Š‡””‡Žƒ–‡†’‡”•‘•‘ˆ•—…Š’‡”•‘ǡ™Š‘Šƒ•ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–‹–Š‡
ƒ••‡••‡‡ǯ•„—•‹‡••Ž‹‡

Ȉ †‹”‡…–‘”‘ˆ•—…Š…‘’ƒ›ǡ’ƒ”–‡”‘ˆ•—…Šϐ‹”‘”–Š‡‡„‡”‘ˆ•—…Šˆƒ‹Ž›‘”
ƒ••‘…‹ƒ–‹‘Ǥ
Ȉ ƒ›”‡Žƒ–‹˜‡‘ˆ•—…Š†‹”‡…–‘”ǡ’ƒ”–‡”‘”‡„‡”
Ȉ › ‘–Š‡” …‘’ƒ› …ƒ””›‹‰ ‘ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ‹ ™Š‹…Š –Š‡ ϐ‹”•–
‡–‹‘‡†…‘’ƒ›Šƒ•ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–
‘–‡ǣ
ƒǤ —„•–ƒ–‹ƒŽ‹–‡”‡•–‹ƒ—•‹‡••‘””‘ˆ‡••‹‘‡ƒ•Ǧȋ‹Ȍ‹…ƒ•‡•™Š‡”‡–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘‹•
…ƒ””‹‡†‘„›ƒ…‘’ƒ›ǡ‹ˆ•—…Š’‡”•‘‹•–Š‡„‡‡ϐ‹…‹ƒŽ‘™‡”ƒ–ƒ›–‹‡†—”‹‰–Š‡”‡Ž‡˜ƒ–ƒ……‘—–‹‰
›‡ƒ”‘ˆ‡“—‹–›•Šƒ”‡•…ƒ””›‹‰‘–Ž‡••–ŠƒʹͲΨ‘ˆ–Š‡–‘–ƒŽ˜‘–‹‰’‘™‡”ǡƒ†ȋ‹‹Ȍ‹‘–Š‡”…ƒ•‡•ǡ‹ˆ•—…Š
’‡”•‘‹•ƒ–ƒ›–‹‡†—”‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”ǡ„‡‡ϐ‹…‹ƒŽŽ›‡–‹–Ž‡†–‘‘–Ž‡••–ŠƒʹͲΨ‘ˆ–Š‡’”‘ϐ‹–•‘ˆ
•—…Š„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ
„Ǥ ‡Žƒ–‹˜‡ ‹ ”‡Žƒ–‹‘ –‘ ƒ †‹˜‹†—ƒŽ ‡ƒ• –Š‡ •’‘—•‡ǡ „”‘–Š‡” ‘” •‹•–‡” ‘” ƒ› Ž‹‡ƒŽ ƒ•…‡†ƒ– ‘”
†‡•…‡†ƒ–‘ˆ–Šƒ–‹†‹˜‹†—ƒŽǤ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͳͻ

ȋʹȌƒ•Šƒ›‡–•‡š…‡‡†‹‰•ǤͳͲǡͲͲͲȏ‡…–‹‘ͶͲȋ͵ȌȐǣŠ‡”‡–Š‡ƒ••‡••‡‡‹…—”•ƒ›‡š’‡†‹–—”‡ȋ™Š‹Ž‡
…‘’—–‹‰‹…‘‡—†‡”–Š‡Š‡ƒ†•”‘ϐ‹–Ƭ
ƒ‹•ˆ”‘—•‹‡••ƒ†”‘ˆ‡••‹‘ƒ†…‘‡ˆ”‘–Š‡”•‘—”…‡•Ȍ
‹”‡•’‡…–‘ˆ™Š‹…Šƒ’ƒ›‡–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ’ƒ›‡–•ƒ†‡–‘ƒ’‡”•‘‹ƒ†ƒ›ǡ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–
’ƒ›‡‡…Š‡“—‡†”ƒ™‘ƒ„ƒ‘”ƒ……‘—–’ƒ›‡‡„ƒ†”ƒˆ–ǡ‘”•—…Š‘–Š‡”‡Ž‡…–”‘‹…‘†‡•ƒ•’”‡•…”‹„‡†—†‡”
—Ž‡͸‡š…‡‡†••ǤͳͲǡͲͲͲȋ–‡–Š‘—•ƒ†”—’‡‡•Ȍǡ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ•—…Š‡š’‡†‹–—”‡Ǥ

”‡•…”‹„‡†Ž‡…–”‘‹…‘†‡•ȏ—Ž‡͸Ȑ

ȋƒȌ”‡†‹–ƒ”†Ǣȋ„Ȍ‡„‹–ƒ”†Ǣȋ…Ȍ‡–ƒ‹‰Ǣȋ†Ȍȋ‡†‹ƒ–‡ƒ›‡–‡”˜‹…‡ȌǢȋ‡Ȍȋ‹ϐ‹‡†ƒ›‡–

–‡”ˆƒ…‡ȌǢȋˆȌ
ȋ‡ƒŽ‹‡
”‘••‡––Ž‡‡–ȌǢȋ‰Ȍ ȋƒ–‹‘ƒŽŽ‡…–”‘‹… —†•”ƒ•ˆ‡”ȌǢƒ†ȋŠȌ
ȋŠƒ”ƒ––‡”ˆƒ…‡ˆ‘”‘‡›Ȍƒ†Šƒ”ƒ›Ǥȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
Š‡”‡ƒƒŽŽ‘™ƒ…‡Šƒ•„‡‡ƒ†‡‹–Š‡ƒ••‡••‡–ˆ‘”ƒ››‡ƒ”‹”‡•’‡…–‘ˆƒ›Ž‹ƒ„‹Ž‹–›‹…—””‡†„›–Š‡ƒ••‡••‡‡
ˆ‘”ƒ›‡š’‡†‹–—”‡ƒ†•—„•‡“—‡–Ž›†—”‹‰ƒ›’”‡˜‹‘—•›‡ƒ”ȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘ƒ••—„•‡“—‡–›‡ƒ”Ȍ–Š‡
ƒ••‡••‡‡ƒ‡•’ƒ›‡–‹”‡•’‡…––Š‡”‡‘ˆǡ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡…Š‡“—‡†”ƒ™‘ƒ„ƒ‘”ƒ……‘—–
’ƒ›‡‡„ƒ†”ƒˆ–ǡ–Š‡’ƒ›‡–•‘ƒ†‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ƒ†
ƒ……‘”†‹‰Ž›…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšƒ•‹…‘‡‘ˆ–Š‡•—„•‡“—‡–›‡ƒ”‹ˆ–Š‡’ƒ›‡–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ’ƒ›‡–•
ƒ†‡–‘ƒ’‡”•‘‹ƒ†ƒ›ǡ‡š…‡‡†•–‡–Š‘—•ƒ†”—’‡‡•ǣ
”‘˜‹†‡†–Šƒ–‘†‹•ƒŽŽ‘™ƒ…‡•ŠƒŽŽ„‡ƒ†‡ƒ†‘’ƒ›‡–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••
‘”’”‘ˆ‡••‹‘—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍƒ†–Š‹••—„Ǧ•‡…–‹‘™Š‡”‡ƒ’ƒ›‡–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ’ƒ›‡–•ƒ†‡–‘ƒ
’‡”•‘‹ƒ†ƒ›ǡ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡…Š‡“—‡†”ƒ™‘ƒ„ƒ‘”ƒ……‘—–’ƒ›‡‡„ƒ†”ƒˆ–‘”•—…Š
‘–Š‡” ‡Ž‡…–”‘‹… ‘†‡• ƒ• ƒ› „‡ ’”‡•…”‹„‡†ǡ ‡š…‡‡†• –‡ –Š‘—•ƒ† ”—’‡‡•ǡ ‹ •—…Š …ƒ•‡• ƒ† —†‡” •—…Š
…‹”…—•–ƒ…‡• ƒ• ƒ› „‡ ’”‡•…”‹„‡†ǡ Šƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ ƒ–—”‡ ƒ† ‡š–‡– ‘ˆ „ƒ‹‰ ˆƒ…‹Ž‹–‹‡• ƒ˜ƒ‹Žƒ„Ž‡ǡ
…‘•‹†‡”ƒ–‹‘•‘ˆ„—•‹‡••‡š’‡†‹‡…›ƒ†‘–Š‡””‡Ž‡˜ƒ–ˆƒ…–‘”•Ǥ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‹–Š‡…ƒ•‡‘ˆ’ƒ›‡–ƒ†‡ˆ‘”’Ž›‹‰ǡŠ‹”‹‰‘”Ž‡ƒ•‹‰‰‘‘†•…ƒ””‹ƒ‰‡•ǡ–Š‡ƒ‘—–•ŠƒŽŽ‘–
‡š…‡‡†•Ǥ͵ͷǡͲͲͲȋ–Š‹”–›Ǧϐ‹˜‡–Š‘—•ƒ†”—’‡‡•Ȍ‹•–‡ƒ†‘ˆ–‡–Š‘—•ƒ†”—’‡‡•Ǥ
†‡”—Ž‡͸‘ˆ–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡ–Š‡ˆ‘ŽŽ‘™‹‰…ƒ–‡‰‘”‹‡•‘ˆ’ƒ›‡–•ƒ”‡‡š‡’–ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•
”‡“—‹”‡‡–Ǥ‘•‡“—‡–Ž›ǡ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͶͲȋ͵Ȍ†‘‘–ƒ’’Ž›–‘–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ƒ†…‹”…—•–ƒ…‡•ǣ
ȋ‹Ȍ ƒ›‡–•™Š‹…Šƒ”‡ƒ†‡–‘–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒǡ–ƒ–‡ƒ‘ˆ†‹ƒ‘”‘–Š‡”„ƒ‹‰‹•–‹–—–‹‘•ǡ
‹…Ž—†‹‰…‘Ǧ‘’‡”ƒ–‹˜‡„ƒ•ƒ†Žƒ†‘”–‰ƒ‰‡„ƒ•ǡ’”‹ƒ”›…”‡†‹–•‘…‹‡–‹‡•ǡ‹ˆ‡•—”ƒ…‡‘”’‘”ƒ–‹‘
‘ˆ†‹ƒǡ‹–”—•–‘ˆ†‹ƒƒ†…‡”–ƒ‹•’‡…‹ϐ‹‡†‹•–‹–—–‡’”‘˜‹†‹‰†—•–”‹ƒŽ ‹ƒ…‡Ǥ
ȋ‹‹Ȍ ƒ›‡–•ǡ™Š‹…Š—†‡”–Š‡…‘–”ƒ…–•‡–‡”‡†‹–‘’”‹‘”–‘ͳǤͶǤͳͻ͸ͻŠƒ˜‡–‘„‡ƒ†‡‘Ž›‹Ž‡‰ƒŽ–‡†‡”Ǥ
ȋ‹‹‹Ȍ ƒ›‡–•ƒ†‡–‘–Š‡‡–”ƒŽ‘”–ƒ–‡
‘˜‡”‡–•™Š‹…Š—†‡”–Š‡—Ž‡•ˆ”ƒ‡†„›–Š‡
‘˜‡”‡–ƒ”‡
”‡“—‹”‡†–‘„‡ƒ†‡‹Ž‡‰ƒŽ–‡†‡”Ǥ
ȋ‹˜Ȍ ƒ›‡–• ‹ ˜‹ŽŽƒ‰‡• ƒ† –‘™• Šƒ˜‹‰ ‘ „ƒ‹‰ ˆƒ…‹Ž‹–›ǡ –‘ ’‡”•‘• ‘”†‹ƒ”‹Ž› ”‡•‹†‹‰ ‘” …ƒ””›‹‰ ‘
„—•‹‡••‘”’”‘ˆ‡••‹‘‹•—…Š˜‹ŽŽƒ‰‡•‘”–‘™•Ǥ
ȋ˜Ȍ ƒ›‡–•„›‡ƒ•‘ˆ„‘‘ƒ†Œ—•–‡–„›–Š‡ƒ••‡••‡‡‹–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡ƒ‰ƒ‹•–‘‡›†—‡–‘–Š‡
ƒ••‡••‡‡ˆ‘”ƒ›‰‘‘†••—’’Ž‹‡†‘”•‡”˜‹…‡•”‡†‡”‡†„›Š‹–‘–Š‡’ƒ›‡‡Ǥ
ȋ˜‹Ȍ ƒ›‡–•ƒ†‡„›ƒ›‡––‡”‘ˆ”‡†‹–ƒ””ƒ‰‡‡––Š”‘—‰Š„ƒǡƒƒ‹Ž‘”–‡Ž‡‰”ƒ’Š‹…–”ƒ•ˆ‡”–Š”‘—‰Š
„ƒǡƒ„‘‘ƒ†Œ—•–‡–ˆ”‘ƒ›ƒ……‘—–‹ƒ„ƒ–‘ƒ›‘–Š‡”ƒ……‘—–‹–Šƒ–‘”ƒ›‘–Š‡”„ƒƒ†ƒ„‹ŽŽ
‘ˆ‡š…Šƒ‰‡ƒ†‡’ƒ›ƒ„Ž‡‘Ž›–‘ƒ„ƒǤ
ȋ˜‹‹Ȍ ƒ›‡–• ‘ˆ –‡”‹ƒŽ „‡‡ϐ‹–• ƒ†‡ –‘ ƒ ‡’Ž‘›‡‡ ‘ˆ ƒ ƒ••‡••‡‡ •—…Š ƒ• ‰”ƒ–—‹–›ǡ ”‡–”‡…Š‡–
…‘’‡•ƒ–‹‘ǡ‡–…Ǥ‘–‡š…‡‡†‹‰•ǤͷͲǡͲͲͲǤ
ȋ˜‹‹‹Ȍ ƒ›‡–•ƒ†‡–‘…—Ž–‹˜ƒ–‘”•ǡ‰”‘™‡”•‘”’”‘†—…‡”•ˆ‘”–Š‡’—”…Šƒ•‡‘ˆƒ‰”‹…—Ž–—”ƒŽ‘”ˆ‘”‡•–’”‘†—…‡ǡƒ‹ƒŽ
Š—•„ƒ†”›’”‘†—…–•‹…Ž—†‹‰Š‹†‡•ƒ†•‹•ǡ’”‘†—…–•‘ˆ†ƒ‹”›‘”’‘—Ž–”›ˆƒ”‹‰ǡ’”‘†—…–•‘ˆŠ‘”–‹…—Ž–—”‡
‘”ϐ‹•Šǡ’”‘†—…–•‘ˆ…‘––ƒ‰‡‹†—•–”›”—™‹–Š‘—––Š‡ƒ‹†‘ˆ’‘™‡”Ǥ
ȋ‹šȌ Š‡”‡–Š‡’ƒ›‡–‹•ƒ†‡–‘ƒ‡’Ž‘›‡‡–‡’‘”ƒ”‹Ž›„—–ˆ‘”ƒ‹‹—’‡”‹‘†‘ˆϐ‹ˆ–‡‡†ƒ›•‹ƒ’Žƒ…‡
‘–Š‡”–ŠƒŠ‹•‘”ƒŽ’Žƒ…‡‘ˆ†—–›‘”‘ƒ•Š‹’’”‘˜‹†‡†–ƒšŠƒ•„‡‡†‡†—…–‡†ƒ–•‘—”…‡‹–‡”•‘ˆ‡…–‹‘
ͳͻʹ ‘ˆ –Š‡ …– ƒ† ’”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– •—…Š ‡’Ž‘›‡‡ Šƒ• ‘ „ƒ ƒ……‘—– ƒ– •—…Š ’Žƒ…‡ ‘ˆ –‡’‘”ƒ”›
’‘•–‹‰‘”•Š‹’Ǥ
 ʹʹͲ Lesson 4 Ȉ EP-TL

ȋšȌ Š‡”‡–Š‡’ƒ›‡–™ƒ•”‡“—‹”‡†–‘„‡ƒ†‡‘ƒ†ƒ›‘™Š‹…Š–Š‡„ƒ•™‡”‡…Ž‘•‡†‡‹–Š‡”‘ƒ……‘—–‘ˆ
Š‘Ž‹†ƒ›‘”•–”‹‡Ǥ
ȋš‹Ȍ Š‡”‡’ƒ›‡–‹•ƒ†‡–‘ƒƒ‰‡–™Š‘‹–—”‹•”‡“—‹”‡†–‘ƒ‡’ƒ›‡–‹…ƒ•Šˆ‘”‰‘‘†•‘”•‡”˜‹…‡•‘
„‡ŠƒŽˆ‘ˆ–Š‡ƒ••‡••‡‡Ǥ
Š‡”‡ƒ‡š’‡•‡’ƒ›ƒ„Ž‡Šƒ•„‡‡ƒŽŽ‘™‡†‹–Š‡ƒ••‡••‡–ˆ‘”ƒ››‡ƒ”‹”‡•’‡…–‘ˆƒ›Ž‹ƒ„‹Ž‹–›‹…—””‡†„›
–Š‡ ƒ••‡••‡‡ ƒ† ‹ ƒ› •—„•‡“—‡– ›‡ƒ” –Š‡ ƒ••‡••‡‡ ƒ‡• ’ƒ›‡– ‹ ”‡•’‡…– –Š‡”‡‘ˆǡ ‘–Š‡”™‹•‡ –Šƒ „› ƒ
ƒ……‘—–’ƒ›‡‡…Š‡“—‡†”ƒ™‘ƒ„ƒ‘”ƒ……‘—–’ƒ›‡‡„ƒ†”ƒˆ–‘”•—…Š‘–Š‡”‡Ž‡…–”‘‹…‘†‡•ƒ•’”‡•…”‹„‡†
—†‡”—Ž‡͸ǡ–Š‡’ƒ›‡–•‘ƒ†‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ƒ†
ƒ……‘”†‹‰Ž›…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšƒ•‹…‘‡‘ˆ–Š‡•—„•‡“—‡–›‡ƒ”‹ˆ–Š‡’ƒ›‡–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ’ƒ›‡–•
ƒ†‡–‘ƒ’‡”•‘‹ƒ†ƒ›ǡͳͲǡͲͲͲǤ
ȋ͵Ȍ”‘˜‹•‹‘ˆ‘”
”ƒ–—‹–›ȏ‡…–‹‘ͶͲȋ͹ȌȐǣ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆƒ›’”‘˜‹•‹‘ƒ†‡„›
–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’ƒ›‡–‘ˆ‰”ƒ–—‹–›–‘Š‹•‡’Ž‘›‡‡•‘–Š‡‹””‡–‹”‡‡–‘”–‡”‹ƒ–‹‘‘ˆ–Š‡‹”‡’Ž‘›‡–
ˆ‘”ƒ›”‡ƒ•‘Ǥ‘™‡˜‡”ǡƒ›’”‘˜‹•‹‘ƒ†‡„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’ƒ›‡–‘ˆƒ•—„›™ƒ›‘ˆƒ›…‘–”‹„—–‹‘
–‘™ƒ”†•ƒƒ’’”‘˜‡†‰”ƒ–—‹–›ˆ—†‘”ˆ‘”–Š‡’—”’‘•‡‘ˆ’ƒ›‡–‘ˆƒ›‰”ƒ–—‹–›–Šƒ–Šƒ•„‡…‘‡’ƒ›ƒ„Ž‡†—”‹‰
–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡ƒŽŽ‘™‡†Ǥ
Š‡”‡ƒ›’”‘˜‹•‹‘ƒ†‡„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’ƒ›‡–‘ˆ‰”ƒ–—‹–›–‘Š‹•‡’Ž‘›‡‡•‘–Š‡‹””‡–‹”‡‡–‘”
–‡”‹ƒ–‹‘‘ˆ–Š‡‹”‡’Ž‘›‡–ˆ‘”ƒ›”‡ƒ•‘Šƒ•„‡‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹…‘’—–‹‰–Š‡‹…‘‡‘ˆ–Š‡
ƒ••‡••‡‡ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ǡƒ›•—’ƒ‹†‘—–‘ˆ•—…Š’”‘˜‹•‹‘„›™ƒ›‘ˆ…‘–”‹„—–‹‘–‘™ƒ”†•ƒƒ’’”‘˜‡†
‰”ƒ–—‹–›ˆ—†‘”„›™ƒ›‘ˆ‰”ƒ–—‹–›–‘ƒ›‡’Ž‘›‡‡•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹…‘’—–‹‰–Š‡‹…‘‡‘ˆ
–Š‡ƒ••‡••‡‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡•—‹••‘’ƒ‹†Ǥ
ȋͶȌ‡•–”‹…–‹‘‘…‘–”‹„—–‹‘„›‡’Ž‘›‡”•–‘‘Ǧ•–ƒ–—–‘”›ˆ—†•ȏ‡…–‹‘•ͶͲȋͻȌǡȋͳͲȌƒ†ȋͳͳȌȐǣ‹–Š
ƒ˜‹‡™–‘†‹•…‘—”ƒ‰‹‰…”‡ƒ–‹‘‘ˆ‹””‡˜‘…ƒ„Ž‡‘”†‹•…”‡–‹‘ƒ”›–”—•–•ˆ—†•ǡ…‘’ƒ‹‡•ǡƒ••‘…‹ƒ–‹‘•‘ˆ’‡”•‘•ǡ
•‘…‹‡–‹‡•ǡ‡–…Ǥ–Š‡ ‹ƒ…‡…–ǡͳͻͺͶŠƒ•’”‘˜‹†‡†–Šƒ–‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹–Š‡…‘’—–ƒ–‹‘‘ˆ–ƒšƒ„Ž‡
’”‘ϐ‹–•‹”‡•’‡…–‘ˆƒ›•—•’ƒ‹†„›–Š‡ƒ••‡••‡‡ƒ•ƒ‡’Ž‘›‡”–‘™ƒ”†•–Š‡•‡––‹‰—’‘”ˆ‘”ƒ–‹‘‘ˆ‘”ƒ•
…‘–”‹„—–‹‘ –‘ ƒ› ˆ—†ǡ –”—•–ǡ …‘’ƒ›ǡ ƒ••‘…‹ƒ–‹‘ ‘ˆ ’‡”•‘•ǡ „‘†› ‘ˆ ‹†‹˜‹†—ƒŽ• ‘” •‘…‹‡–› ‘” ƒ› ‘–Š‡”
‹•–‹–—–‹‘ˆ‘”ƒ›’—”’‘•‡ǡ‡š…‡’–™Š‡”‡•—…Š•—‹•’ƒ‹†„›–Š‡ƒ••‡••‡‡ƒ•ƒ‡’Ž‘›‡”‘”…‘–”‹„—–‡†ȋ™‹–Š‹
–Š‡Ž‹‹–•Žƒ‹††‘™—†‡”–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•Ȍ–‘ƒ”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†‘”ƒƒ’’”‘˜‡†‰”ƒ–—‹–›ˆ—†‘”
ƒƒ’’”‘˜‡†•—’‡”ƒ—ƒ–‹‘ˆ—†‘”ˆ‘”–Š‡’—”’‘•‡•‘ˆƒ†–‘–Š‡‡š–‡–”‡“—‹”‡†„›‘”—†‡”ƒ›‘–Š‡”Žƒ™Ǥ

‹•ƒŽŽ‘™ƒ…‡‘ˆ—’ƒ‹†–ƒ–—–‘”›‹ƒ„‹Ž‹–›ȏ‡…–‹‘Ͷ͵Ȑ
†‡”–Š‡‹…‘‡Ǧ–ƒšŽƒ™ǡƒ’‡”•‘…ƒ””›‹‰‘ƒ„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒƒ‹–ƒ‹ƒ……‘—–ˆ‘”Š‹•‹…‘‡‡‹–Š‡”
‘…ƒ•Š‘”‡”…ƒ–‹Ž‡„ƒ•‹•ǤŠ‡Žƒ––‡”ǡŠ‘™‡˜‡”ǡŠƒ˜‡–‘”‡…‘™‹–Š–Š‡”‡•–”‹…–‹‘•…‘–ƒ‹‡†‹‡…–‹‘Ͷ͵‘ˆ–Š‡
…‘‡Ǧ–ƒš…–ǤŠ‹••‡…–‹‘…—–•‹–‘–Š‡ˆ”‡‡†‘‘ˆƒ„—•‹‡••–‘…Žƒ‹…‡”–ƒ‹•’‡…‹ϐ‹‡†‡š’‡•‡•‘†—‡„ƒ•‹•Ǥ
Š‡•‡…–‹‘Šƒ•„”‘ƒ†Ž›†‹˜‹†‡†–Š‡–ƒ”‰‡–‡†‡š’‡•‡•‹–‘–™‘ǡ‹Ǥ‡Ǥǡƒ……‘”†‹‰–‘•‡…–‹‘Ͷ͵‡˜‡‹ˆƒƒ••‡••‡‡
ƒ‹–ƒ‹•„‘‘•‘‡”…ƒ–‹Ž‡•›•–‡‡˜‡–Š‡–Š‡ˆ‘ŽŽ‘™‹‰•—•ƒ”‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‘Ž›‘–Š‡„ƒ•‹•‘ˆ
ƒ…–—ƒŽ’ƒ›‡–™‹–Š‹–Š‡–‹‡Ž‹‹–••’‡…‹ϐ‹‡†‹•‡…–‹‘Ͷ͵Ǥ–Š‡ϐ‹”•–…ƒ–‡‰‘”›ƒ”‡ǣ
ȋƒȌ ›•—’ƒ›ƒ„Ž‡„›™ƒ›‘ˆ–ƒš‡•ǡ†—–‹‡•ǡ…‡••‘”ˆ‡‡•ǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡
„‡‹‰‹ˆ‘”…‡ǡ‘”Ǣ
ȋ„Ȍ „‘—•ƒ†…‘‹••‹‘–‘‡’Ž‘›‡‡•Ǣ
ȋ…Ȍ ‹–‡”‡•– ‘ ƒ› Ž‘ƒ ‘” „‘””‘™‹‰ ˆ”‘ ’—„Ž‹… ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘•ǡ •–ƒ–‡ ϐ‹ƒ…‹ƒŽ …‘”’‘”ƒ–‹‘•ǡ •–ƒ–‡
‹†—•–”‹ƒŽ ‹˜‡•–‡– …‘”’‘”ƒ–‹‘•ǡ ‘ „ƒ‹‰ ϐ‹ƒ…‹ƒŽ …‘’ƒ› ȋ†‡’‘•‹– –ƒ‹‰ Ƭ ‘ †‡’‘•‹– –ƒ‹‰
 •Ȍ ƒ† ‘ ƒ› Ž‘ƒ ‘” ƒ†˜ƒ…‡ ˆ”‘ ƒ •…Š‡†—Ž‡† „ƒ ‘” …‘Ǧ‘’‡”ƒ–‹˜‡ „ƒ ȋ‘–Š‡” –Šƒ ’”‹ƒ”›
ƒ‰”‹…—Ž–—”ƒŽ…”‡†‹–•‘…‹‡–›‘”’”‹ƒ”›…‘Ǧ‘’‡”ƒ–‹˜‡ƒ‰”‹…—Ž–—”ƒŽƒ†”—”ƒŽ†‡˜‡Ž‘’‡–„ƒȌ‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡–‡”•ƒ†…‘†‹–‹‘•‘ˆ–Š‡ƒ‰”‡‡‡–‰‘˜‡”‹‰•—…ŠŽ‘ƒ‘”„‘””‘™‹‰Ǥ
ȋ†Ȍ Ž‡ƒ˜‡‡…ƒ•Š‡–’ƒ‹†„›‡’Ž‘›‡”Ǥ
ȋ‡Ȍ ›•—’ƒ›ƒ„Ž‡„›‡’Ž‘›‡”„›™ƒ›‘ˆ…‘–”‹„—–‹‘–‘’”‘˜‹†‡–ˆ—†‘”•—’‡”ƒ—ƒ–‹‘ˆ—†‘”ƒ›‘–Š‡”
ˆ—†ˆ‘”™‡Žˆƒ”‡‘ˆ‡’Ž‘›‡‡•Ǥ
ȋˆȌ ›•—’ƒ›ƒ„Ž‡„›–Š‡ƒ••‡•‡‡–‘–Š‡†‹ƒƒ‹Ž™ƒ›•ˆ‘”—•‡‘ˆ”ƒ‹Ž™ƒ›ƒ••‡–•
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹʹͳ

Š‡•‡‡š’‡•‡•‘—–•–ƒ†‹‰ƒ––Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”™‘—Ž†„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‘Ž›–‘–Š‡‡š–‡––Š‡›
Šƒ˜‡„‡‡ƒ…–—ƒŽŽ›’ƒ‹†‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰–Š‡‹…‘‡Ǧ–ƒš”‡–—”ˆƒ‹Ž‹‰™Š‹…Š–Š‡›™‘—Ž†„‡ƒŽŽ‘™‡†
‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡›Šƒ˜‡„‡‡ƒ…–—ƒŽŽ›’ƒ‹†Ǥ
Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ƒ”‡ƒ’’Ž‹…ƒ„Ž‡‘Ž›–‘‡’Ž‘›‡”ǯ•…‘–”‹„—–‹‘ƒ†ƒ”‡‘–ƒ’’Ž‹…ƒ„Ž‡–‘‡’Ž‘›‡‡ǯ•
…‘–”‹„—–‹‘ˆ‘”–Š‡™‡Žˆƒ”‡ˆ—†•Ǥ‡…‡‡’Ž‘›‡”Ǯ•…‘–”‹„—–‹‘–‘˜ƒ”‹‘—•ˆ—†•‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‹ˆ–Š‡
•ƒ‡‹•’ƒ‹†‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰”‡–—”—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǤ‘™‡˜‡”‡’Ž‘›‡‡ǯ•…‘–”‹„—–‹‘ˆ‘”
–Š‡ ™‡Žˆƒ”‡ ˆ—†• ‹• ϐ‹”•– †‡‡‡† ƒ• ‹…‘‡ ‘ˆ –Š‡ ƒ••‡••‡‡ ȋ‡’Ž‘›‡”Ȍ —Ȁ• ͵͸ȋͳȌȋ˜ƒȌ ƒ† –Š‡ •ƒ‡ ‹• ƒŽŽ‘™‡†
†‡†—…–‹‘‘Ž›™Š‡•—…Š•—•ƒ”‡†‡’‘•‹–‡†„›–Š‡ƒ••‡••‡‡–‘–Š‡‡’Ž‘›‡‡ǯ•ƒ……‘—–‹–Š‡”‡Ž‡˜ƒ–ˆ—†‘”
ˆ—†•‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡ƒ•’‡”–Š‡”‡•’‡…–‹˜‡™‡Žˆƒ”‡ƒ…–•Ǥ
–‹•Š‡”‡„›…Žƒ”‹ϔ‹‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›ƒ†•ŠƒŽŽ„‡†‡‡‡†‡˜‡”–‘Šƒ˜‡„‡‡
applied to a sum received by the assessee from any of his employees to which the provisions of sub-clause (x)
of clause (24) of section 2 applies.”[Amendment vide Finance Act, 2021]
‘–‡ǣ Š‡”‡ –Š‡”‡ ‹• †‡ˆƒ—Ž– ‹ –Š‡ ’ƒ›‡– ‘ˆ •—…Š ‹–‡”‡•–ǡ •—…Š ‹–‡”‡•– …ƒ „‡ …‘˜‡”–‡† ‹ –‘ ƒ Ž‘ƒǤ —…Š
…‘˜‡”•‹‘‘ˆ–Š‡—’ƒ‹†‹–‡”‡•–‹–‘Ž‘ƒǡ„›‹–•‡Žˆǡ†‘‡•‘–…‘•–‹–—–‡–Š‡’ƒ›‡–ǡˆ‘”’—”’‘•‡•‘ˆ‡…–‹‘Ͷ͵Ǥ
Š‹••ŠƒŽŽ„‡ƒŽŽ‘™‡†’”‘’‘”–‹‘ƒ–‡Ž›‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡…‘˜‡”–‡†‹–‡”‡•–‹•ƒ…–—ƒŽŽ›’ƒ‹†Ǥ
›•—’ƒ›ƒ„Ž‡‡ƒ•ƒ•—ˆ‘”™Š‹…Š–Š‡ƒ••‡••‡‡‹…—””‡†Ž‹ƒ„‹Ž‹–›‹–Š‡’”‡˜‹‘—•›‡ƒ”‡˜‡–Š‘—‰Š•—…Š•—
‹‰Š–‘–Šƒ˜‡„‡‡’ƒ›ƒ„Ž‡™‹–Š‹–Šƒ–›‡ƒ”—†‡”–Š‡”‡Ž‡˜ƒ–Žƒ™Ǥ

Šƒ‰‡•‹ƒ–‡‘ˆš…Šƒ‰‡ȏ‡…–‹‘Ͷ͵Ȑ
•’‡”‡…–‹‘Ͷ͵‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ™Š‡”‡ƒƒ••‡••‡‡Šƒ•ƒ…“—‹”‡†ƒ›ƒ••‡–‹ƒ›’”‡˜‹‘—•›‡ƒ”ˆ”‘ƒ
…‘—–”›‘—–•‹†‡†‹ƒˆ‘”–Š‡’—”’‘•‡•‘ˆŠ‹•„—•‹‡••‘”’”‘ˆ‡••‹‘ƒ†ǡ‹…‘•‡“—‡…‡‘ˆƒ…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ
‡š…Šƒ‰‡†—”‹‰ƒ›’”‡˜‹‘—•›‡ƒ”ƒˆ–‡”–Š‡ƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–ǡ–Š‡”‡‹•ƒ‹…”‡ƒ•‡‘””‡†—…–‹‘‹–Š‡Ž‹ƒ„‹Ž‹–›
‘ˆ–Š‡ƒ••‡••‡‡ƒ•‡š’”‡••‡†‹†‹ƒ…—””‡…›ȋƒ•…‘’ƒ”‡†–‘–Š‡Ž‹ƒ„‹Ž‹–›‡š‹•–‹‰ƒ––Š‡–‹‡‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡
ƒ••‡–Ȍƒ––Š‡–‹‡‘ˆƒ‹‰’ƒ›‡––‘™ƒ”†•–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡…‘•–‘ˆ–Š‡ƒ••‡–‘”ˆ‘”’ƒ›‡–‘ˆ–Š‡™Š‘Ž‡
‘”’ƒ”–‘ˆ–Š‡‘‡›•„‘””‘™‡†„›Š‹ˆ”‘ƒ›’‡”•‘†‹”‡…–Ž›‘”‹†‹”‡…–Ž›‹ƒ›ˆ‘”‡‹‰…—””‡…›•’‡…‹ϐ‹…ƒŽŽ›
ˆ‘”–Š‡’—”’‘•‡‘ˆƒ…“—‹”‹‰–Š‡…ƒ’‹–ƒŽƒ••‡–ǤŠ‡ƒ‘—–„›™Š‹…Š–Š‡Ž‹ƒ„‹Ž‹–›‘ˆ–Š‡ƒ••‡••‡‡‹–‡”•‘ˆ†‹ƒ
—’‡‡•‹•‹…”‡ƒ•‡†‘””‡†—…‡†ƒ•ƒ”‡•—Ž–‘ˆ…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡‘ˆ–Š‡…—””‡…›ǡ™‘—Ž†„‡ƒ††‡†–‘‘”ƒ•
–Š‡…ƒ•‡ƒ›„‡†‡†—…–‡†ˆ”‘–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–ƒ•†‡ϐ‹‡†‹‡…–‹‘Ͷ͵ȋͳȌǤ‘•‡“—‡–Ž›ǡ–Š‡ƒ‘—–•
‘ˆ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡–‘ƒ••‡••‡‡‹”‡•’‡…–‘ˆ–Š‡ƒ••‡–™‘—Ž†…‘””‡•’‘†‹‰Ž›„‡‹…”‡ƒ•‡†‘””‡†—…‡†ǡƒ•–Š‡
…ƒ•‡ƒ›„‡Ǥ
‘”–Š‡•‡’—”’‘•‡•ǡ–Š‡‡š’”‡••‹‘Dz”ƒ–‡‘ˆ‡š…Šƒ‰‡dz—•–„‡–ƒ‡–‘‡ƒ–Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡†‡–‡”‹‡†‘”
”‡…‘‰‹•‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ‘”–Š‡…‘˜‡”•‹‘‘ˆ†‹ƒ—’‡‡‹–‘ˆ‘”‡‹‰…—””‡…›‘”vice-versaǤ
…ƒ•‡•™Š‡”‡–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡Ž‹ƒ„‹Ž‹–›‹”‡•’‡…–‘ˆ–Š‡’ƒ›‡–ˆ‘”–Š‡…‘•–‘ˆ–Š‡ƒ••‡–‘”‹”‡•’‡…–‘ˆ–Š‡
‘‡›„‘””‘™‡†ˆ”‘ƒˆ‘”‡‹‰•‘—”…‡ˆ‘”ƒ…“—‹”‹‰–Š‡…ƒ’‹–ƒŽƒ••‡–‹•‘–‡–„›–Š‡ƒ••‡••‡‡„—–†‹”‡…–Ž›‘”
‹†‹”‡…–Ž› „› ƒ› ‘–Š‡” ’‡”•‘ ‘” ƒ—–Š‘”‹–›ǡ –Š‡ Ž‹ƒ„‹Ž‹–› •‘ ‡– „› –Š‡ ‘–Š‡” ’‡”•‘• •Š‘—Ž† ‘– „‡ –ƒ‡ ‹–‘
ƒ……‘—– ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ƒ› ƒ†Œ—•–‡– ‹ –Š‡ ƒ…–—ƒŽ …‘•– ‘ˆ –Š‡ ƒ••‡– ƒ† …‘•‡“—‡–Ž› –Š‡ †‡’”‡…‹ƒ–‹‘
ƒŽŽ‘™ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡ƒ”‹•‹‰ˆ”‘–Š‡…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡‘ˆ–Š‡…—””‡…›Ǥ
ˆǡƒ––Š‡–‹‡‘ˆ…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡ƒ”‹•‹‰‘ƒ……‘—–‘ˆ†‡˜ƒŽ—ƒ–‹‘‘”‘–Š‡”™‹•‡–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡
ƒ••‡– Šƒ• „‡‡ ˆ—ŽŽ› ’ƒ‹† „› –Š‡ ƒ••‡••‡‡ ƒ† ‘ ‘‡› ”‡ƒ‹• ‘—–•–ƒ†‹‰ ‹ ”‡•’‡…– ‘ˆ ƒ› •— „‘””‘™‡†
•’‡…‹ϐ‹…ƒŽŽ› ˆ‘” –Š‡ ’—”’‘•‡ǡ ‘ ƒ†Œ—•–‡– ™‘—Ž† „‡ ’‡”‹••‹„Ž‡ –‘ –Š‡ ƒ••‡••‡‡Ǥ Š‡ •’‡…‹ƒŽ ’”‘˜‹•‹‘ ™‘—Ž†ǡ
Š‘™‡˜‡”ǡƒ’’Ž›‘Ž›‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘”–Š‡˜ƒŽ—‡‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ƒ†™‘—Ž†‘–‹ƒ›™ƒ›
ƒˆˆ‡…––Š‡˜ƒŽ—‡‘ˆ–Š‡…—””‡–ƒ••‡–•ǡ•—…Šƒ••–‘…Ǧ‹Ǧ–”ƒ†‡‘”‘–Š‡”–”ƒ†‹‰ƒ••‡–•Ǥ
Š‡ƒ††‹–‹‘‘”†‡†—…–‹‘ˆ”‘–Š‡ƒ…–—ƒŽ…‘•–‘ˆ–Š‡ƒ••‡–‘ƒ……‘—–‘ˆ…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡‹ƒ›
’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘„‡ƒ†‡‘Ž›‘ƒ…–—ƒŽ’ƒ›‡–„›–Š‡ƒ••‡••‡‡–‘™ƒ”†•–Š‡…‘•–‘ˆ–Š‡ƒ••‡–‘”
”‡’ƒ›‡–‘ˆ–Š‡ˆ‘”‡‹‰Ž‘ƒ‘”‹–‡”‡•–ǡ‹””‡•’‡…–‹˜‡‘ˆ–Š‡‡–Š‘†‘ˆƒ……‘—–‹‰ƒ†‘’–‡†„›Š‹Ǥ
 ʹʹʹ Lesson 4 Ȉ EP-TL

 
‡…–‹‘Ͷͳ‘ˆ–Š‡…‘‡Ǧ–ƒš…–‡—‡”ƒ–‡•‹–‡•‘ˆ‘–‹‘ƒŽ‹…‘‡™Š‹…Šƒ”‡†‡‡‡†–‘„‡‹…‘‡ˆ”‘„—•‹‡••
‘”’”‘ˆ‡••‹‘…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤŠ‡Ž‹ƒ„‹Ž‹–›–‘–ƒš‹”‡•’‡…–‘ˆ†‡‡‡†’”‘ϐ‹–•™‘—Ž†ƒ”‹•‡‘–‘Ž›†—”‹‰–Š‡
‡š‹•–‡…‡‘ˆ–Š‡„—•‹‡••„—–ƒŽ•‘ƒˆ–‡”‹–•†‹•…‘–‹—ƒ…‡ǤŠ‡‹–‡•‘ˆ†‡‡‡†’”‘ϐ‹–•ƒ”‡‡Ž‹•–‡†„‡Ž‘™ǣ
ȋ‹Ȍ ‡‹••‹‘‘ˆ‹ƒ„‹Ž‹–›‘”‡…‘—’‡–‘ˆ‘••‘”š’‡†‹–—”‡ǣŠ‡”‡ƒ›ƒŽŽ‘™ƒ…‡‘”†‡†—…–‹‘Šƒ•
„‡‡ƒ†‡‹–Š‡ƒ••‡••‡–ˆ‘”ƒ››‡ƒ”‹”‡•’‡…–‘ˆŽ‘••‡•ǡ‡š’‡†‹–—”‡‘”–”ƒ†‹‰Ž‹ƒ„‹Ž‹–›‹…—””‡†„›–Š‡
ƒ••‡••‡‡ƒ†•—„•‡“—‡–Ž›–Š‡ƒ••‡••‡‡‘”Š‹•Ȁ‹–••—……‡••‘”‹„—•‹‡••Šƒ•‘„–ƒ‹‡†ǡ™Š‡–Š‡”‹…ƒ•Š‘”‹
ƒ›‘–Š‡”ƒ‡”™Šƒ–•‘‡˜‡”ǡƒ›ƒ‘—–‹”‡•’‡…–‘ˆ•—…ŠŽ‘••‘”‡š’‡†‹–—”‡‘”•‘‡„‡‡ϐ‹–‹”‡•’‡…–
‘ˆ•—…Š–”ƒ†‹‰Ž‹ƒ„‹Ž‹–›„›™ƒ›‘ˆ”‡‹••‹‘‘”…‡••ƒ–‹‘–Š‡”‡‘ˆ†—”‹‰ƒ›•—„•‡“—‡–ƒ……‘—–‹‰›‡ƒ”ǡ–Š‡
ƒ‘—–•‘‘„–ƒ‹‡†‘”–Š‡˜ƒŽ—‡‘ˆ–Š‡„‡‡ϐ‹–•‘ƒ……”—‹‰–‘–Š‡ƒ••‡••‡‡‘”Š‹•Ȁ‹–••—……‡••‘”‹„—•‹‡••ƒ•
–Š‡…ƒ•‡ƒ›„‡ǡ—•–„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ƒ†—•–„‡…Šƒ”‰‡†
–‘–ƒšƒ•–Š‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡‘”Š‹•Ȁ‹–••—……‡••‘”‹„—•‹‡••ƒ•–Š‡…ƒ•‡ƒ›„‡ˆ‘”–Š‡›‡ƒ”‹™Š‹…Š
–Š‡ ”‡‹••‹‘ ‘” …‡••ƒ–‹‘ –ƒ‡• ’Žƒ…‡Ǥ Š‹• –ƒš Ž‹ƒ„‹Ž‹–› ™‘—Ž† ƒ”‹•‡ ‹””‡•’‡…–‹˜‡ ‘ˆ –Š‡ ˆƒ…– ™Š‡–Š‡” –Š‡
„—•‹‡••‘”’”‘ˆ‡••‹‘‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡ƒŽŽ‘™ƒ…‡‘”†‡†—…–‹‘Šƒ•„‡‡ƒ†‡‹•„‡‹‰…‘–‹—‡†–‘
„‡…ƒ””‹‡†‘„›–Š‡ƒ••‡••‡‡‹–Š‡›‡ƒ”‘ˆ”‡‹••‹‘‘ˆŽ‹ƒ„‹Ž‹–›‘”‘–Ǥ ‘”‹•–ƒ…‡ǡ‹ˆ•ƒŽ‡•–ƒš‹•’ƒ‹†„›–Š‡
ƒ••‡••‡‡‹–Š‡›‡ƒ”ͳͻͻͺǦͻͻƒ†–Š‡ƒ••‡••‡‡‰‡–•ƒ”‡ˆ—†‘ˆ•ƒŽ‡•Ǧ–ƒš’”‡˜‹‘—•Ž›’ƒ‹†‹–Š‡›‡ƒ”ͳͻͻͻǦ
ʹͲͲͲǡ–Š‡”‡ˆ—†™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•–Š‡ƒ••‡••‡‡ǯ•‹…‘‡‘ˆͳͻͻͻǦʹͲͲͲǤ—––Š‡–ƒšƒ„‹Ž‹–›‘ˆƒ›†‡‡‡†
’”‘ϐ‹–‘ƒ……‘—–‘ˆ”‡‹••‹‘‘ˆŽ‹ƒ„‹Ž‹–›‘””‡…‘—’‡–‘ˆŽ‘••™‘—Ž†ƒ”‹•‡‘Ž›‹ˆ–Š‡Ž‹ƒ„‹Ž‹–›‹“—‡•–‹‘‘”
–Š‡ ƒ‘—– ‘ˆ –Š‡ Ž‘•• ™ƒ• ’”‡˜‹‘—•Ž› ƒŽŽ‘™‡† ƒ• ƒ †‡†—…–‹‘ ‹ …‘’—–‹‰ –Š‡ „—•‹‡•• ‹…‘‡ ‘ˆ –Š‡
ƒ••‡••‡‡Ǥ ‘”‹•–ƒ…‡ǡ‹ˆ–Š‡‹…‘‡Ǧ–ƒšƒ••‡••‡–ˆ‘”–Š‡›‡ƒ”‹™Š‹…Š–Š‡‡š’‡†‹–—”‡‘”Ž‘••™ƒ•…Žƒ‹‡†
™ƒ•ƒ†‡‡š’ƒ”–‡‘”™ƒ•ƒ„‡•–Œ—†‰‡‡–ƒ••‡••‡–ƒ†–Š‡‹…‘‡™ƒ•‡•–‹ƒ–‡†ǡ‹–…ƒ‘–„‡•ƒ‹†–Šƒ–
–Š‡‡š’‡†‹–—”‡™ƒ•ƒ…–—ƒŽŽ›ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹–Š‡ƒ••‡••‡–Ǥ‘•‡“—‡–Ž›ǡ‹ˆ–Š‡”‡‹•ƒ”‡‹••‹‘
‘ˆ–Š‡Ž‹ƒ„‹Ž‹–›•—„•‡“—‡–Ž›ǡ–Š‡ƒ••‡••‡‡…ƒ‘–„‡„”‘—‰Š––‘…Šƒ”‰‡‹”‡•’‡…–‘ˆ–Š‡•ƒ‡Ǥ‹Žƒ–‡”ƒŽ™”‹–‡
‘ˆˆ‘ˆƒ›Ž‹ƒ„‹Ž‹–›™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•†‡‡‡†‹…‘‡Ǥ
ȋ‹‹Ȍ Š‡”‡ƒ›„—‹Ž†‹‰ǡƒ…Š‹‡”›’Žƒ–‘”ˆ—”‹–—”‡‘™‡†„›–Š‡ƒ••‡••‡‡ƒ†—•‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ„—•‹‡••
ˆ‘”™Š‹…Š†‡’”‡…‹ƒ–‹‘—†‡”‡…–‹‘͵ʹȋͳȌȋ‹Ȍ‹•…Žƒ‹‡†ǡ‹••‘Ž†ǡ†‹•…ƒ”†‡†ǡ†‡‘Ž‹•Š‡†‘”†‡•–”‘›‡†ƒ†–Š‡
‘‡›’ƒ›ƒ„Ž‡–‘‰‡–Š‡”™‹–Š•…”ƒ’˜ƒŽ—‡‹”‡•’‡…–‘ˆ•—…Šƒ••‡–•‡š…‡‡†•–Š‡™”‹––‡†‘™˜ƒŽ—‡ǡ–Š‡‡š…‡••
–‘–Š‡‡š–‡–‘ˆ†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡ƒ…–—ƒŽ…‘•–ƒ†–Š‡™”‹––‡†‘™˜ƒŽ—‡•ŠƒŽŽ„‡–ƒšƒ„Ž‡ƒ•„—•‹‡••
‹…‘‡‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‘‡›•’ƒ›ƒ„Ž‡„‡…‘‡†—‡Ǥ
 ˜‡‹ˆ‹–Š‡›‡ƒ”–Š‡‘‡›•’ƒ›ƒ„Ž‡„‡…‘‡•†—‡ǡ–Š‡„—•‹‡••ˆ‘”™Š‹…Š–Š‡•‡ƒ••‡–•™‡”‡—•‡†‹•‘
Ž‘‰‡”‹‡š‹•–‡…‡ǡ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›ƒ•‹ˆ–Š‡„—•‹‡••‹•‹‡š‹•–‡…‡‹–Šƒ–’”‡˜‹‘—•
›‡ƒ”Ǥ
ȋ‹‹‹Ȍ ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ ‘ …‹‡–‹ϐ‹… ‡•‡ƒ”…Šǣ Š‡”‡ ƒ ƒ••‡••‡‡ ‹…—”• …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ ‘ •…‹‡–‹ϐ‹…
”‡•‡ƒ”…Šǡ–Š‡‡–‹”‡ƒ‘—–‘ˆ•—…Š‡š’‡†‹–—”‡‹•ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ†‡†—…–‹‘‹…‘’—–‹‰–Š‡„—•‹‡••‹…‘‡
‘ˆ–Š‡ƒ••‡••‡‡‹–Š‡•ƒ‡›‡ƒ”‹™Š‹…Š–Š‡‡š’‡†‹–—”‡‹•‹…—””‡†Ǥˆ•—„•‡“—‡––‘–Š‡‹…—””‹‰‘ˆ–Š‡
‡š’‡†‹–—”‡ǡ –Š‡ ƒ••‡– ”‡’”‡•‡–‹‰ –Š‡ …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ ‹• •‘Ž†ǡ ™‹–Š‘—– Šƒ˜‹‰ „‡‡ —•‡† ˆ‘” ‘–Š‡”
’—”’‘•‡•ǡ–Š‡ƒ••‡••‡‡™‘—Ž†„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš‘–Š‡‡š…‡••‘ˆ•ƒŽ‡’”‘…‡‡†•–‘‰‡–Š‡”™‹–Š–Š‡†‡†—…–‹‘
ƒŽŽ‘™‡†‡ƒ”Ž‹‡”‘˜‡”–Š‡ƒ‘—–‘ˆ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘”–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘ƒŽŽ‘™‡†‡ƒ”Ž‹‡”™Š‹…Š‡˜‡”
‹•Ž‡••Ǥ
 —”–Š‡”ǡ –Š‡ ƒ••‡••‡‡ ‹• Ž‹ƒ„Ž‡ –‘ ’ƒ› –ƒš ‘ –Š‡ „ƒŽƒ…‹‰ …Šƒ”‰‡ ‡˜‡ ‹ˆ –Š‡ ƒ••‡••‡‡ǯ• „—•‹‡•• ‹• ‘– ‹
‡š‹•–‡…‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‘‡›’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆƒ›ƒ••‡–„‡…‘‡•†—‡Ǥ
 š’Žƒƒ–‹‘ǣ ‘”–Š‡’—”’‘•‡‘ˆ—„Ǧ•‡…–‹‘ȋ͵ȌǦ
ͳǤ Dz‘‡›•’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆƒ›„—‹Ž†‹‰ǡƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡dz‹…Ž—†‡•Ǧ
ȋƒȌ ƒ›‹•—”ƒ…‡ǡ•ƒŽ˜ƒ‰‡‘”…‘’‡•ƒ–‹‘‘‡›•’ƒ›ƒ„Ž‡‹”‡•’‡…––Š‡”‡‘ˆǢ
ȋ„Ȍ ™Š‡”‡ –Š‡ „—‹Ž†‹‰ǡ ƒ…Š‹‡”›ǡ ’Žƒ– ‘” ˆ—”‹–—”‡ ‹• •‘Ž†ǡ –Š‡ ’”‹…‡ ˆ‘” ™Š‹…Š ‹– ‹• •‘Ž†ǡ •‘
Š‘™‡˜‡”ǡ–Šƒ–™Š‡”‡–Š‡ƒ…–—ƒŽ…‘•–‘ˆƒ‘–‘”…ƒ”‹•ǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‘–‘…Žƒ—•‡
ȋͳȌ‘ˆ‡…–‹‘Ͷ͵ǡ–ƒ‡–‘„‡–™‡–›Ǧϐ‹˜‡–Š‘—•ƒ†”—’‡‡•ǡ–Š‡‘‡›•’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ
•—…Š‘–‘”…ƒ”•ŠƒŽŽ„‡–ƒ‡–‘„‡ƒ•—™Š‹…Š„‡ƒ”•–‘–Š‡ƒ‘—–ˆ‘”™Š‹…Š–Š‡‘–‘”…ƒ”‹•
•‘Ž† ‘”ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ –Š‡ ƒ‘—– ‘ˆ ƒ› ‹•—”ƒ…‡ǡ •ƒŽ˜ƒ‰‡ ‘” …‘’‡•ƒ–‹‘ ‘‡›•
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹʹ͵

’ƒ›ƒ„Ž‡‹”‡•’‡…––Š‡”‡‘ˆȋ‹…Ž—†‹‰–Š‡ƒ‘—–‘ˆ•…”ƒ’˜ƒŽ—‡ǡ‹ˆƒ›Ȍ–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•
–Š‡ ƒ‘—– ‘ˆ –™‡–›Ǧϐ‹˜‡ –Š‘—•ƒ† ”—’‡‡• „‡ƒ”• –‘ –Š‡ ƒ…–—ƒŽ …‘•– ‘ˆ –Š‡ ‘–‘” …ƒ” –‘ –Š‡
ƒ••‡••‡‡ƒ•‹–™‘—Ž†Šƒ˜‡„‡‡…‘’—–‡†„‡ˆ‘”‡ƒ’’Ž›‹‰–Š‡•ƒ‹†’”‘˜‹•‘Ǣ
ʹǤ Dz•‘Ž†dz‹…Ž—†‡•ƒ–”ƒ•ˆ‡”„›™ƒ›‘ˆ‡š…Šƒ‰‡‘”ƒ…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡
„‡‹‰ ‹ ˆ‘”…‡ „—– †‘‡• ‘– ‹…Ž—†‡ ƒ –”ƒ•ˆ‡”ǡ ‹ ƒ •…Š‡‡ ‘ˆ ƒƒŽ‰ƒƒ–‹‘ǡ ‘ˆ ƒ› ƒ••‡– „› –Š‡
ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›™Š‡”‡–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›‹•ƒ†‹ƒ
‘’ƒ›Ǥ
ȋ‹˜Ȍ ‡…‘˜‡”›‘ˆƒ†‡„–•ǣŠ‡”‡–Š‡ƒ••‡••‡‡…Žƒ‹•ƒ†‡†—…–‹‘‹ƒ››‡ƒ”‹”‡•’‡…–‘ˆƒ†‡„–™Š‹…ŠŠƒ•
„‡…‘‡„ƒ†‘”‹””‡…‘˜‡”ƒ„Ž‡ƒ†–Š‡••‡••‹‰ˆϐ‹…‡”ƒŽŽ‘™•ƒ†‡†—…–‹‘–‘–Š‡‡š–‡–‘ˆ–Š‡„ƒ††‡„–•ǡ‹ˆ
•—„•‡“—‡–Ž›–Š‡ƒ••‡••‡‡”‡…‘˜‡”•‡‹–Š‡”–Š‡ˆ—ŽŽƒ‘—–‘ˆ–Š‡†‡„–™Š‹…Š™ƒ•’”‡˜‹‘—•Ž›™”‹––‡‘ˆˆƒ•„ƒ†
‘”’ƒ”––Š‡”‡‘ˆǡ–Š‡ƒ‘—–•‘”‡…‘˜‡”‡†™‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•–Š‡„—•‹‡••‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡
‹–Š‡›‡ƒ”‘ˆ”‡…‘˜‡”›Ǥ—–‹ˆ–Š‡ƒ‘—–…Žƒ‹‡†„›–Š‡ƒ••‡••‡‡ƒ•„ƒ††‡„–™ƒ•’”‡˜‹‘—•Ž›†‹•ƒŽŽ‘™‡†„›
–Š‡ ••‡••‹‰ ˆϐ‹…‡” ‘ –Š‡ ‰”‘—† –Šƒ– ‹– Šƒ† ‘– ƒ…–—ƒŽŽ› „‡…‘‡ „ƒ† ‘” ‹– ™ƒ• ‘– ™”‹––‡ ‘ˆˆ „› –Š‡
ƒ••‡••‡‡ǡ™Š‡–Š‡‘‡›‹•”‡…‘˜‡”‡†ǡ–Š‡”‡™‘—Ž†„‡‘Ž‹ƒ„‹Ž‹–›–‘–ƒš‹”‡•’‡…––Š‡”‡‘ˆǤ…ƒ•‡•™Š‡”‡
–Š‡ ••‡••‹‰ ˆϐ‹…‡” Šƒ† ƒŽŽ‘™‡† ‘Ž› ƒ ’ƒ”– –Š‡”‡‘ˆ ƒ• „ƒ†ǡ ‹ –Š‡ •—„•‡“—‡– ›‡ƒ” ‘ˆ ”‡…‘˜‡”›ǡ –Š‡ –ƒš
Ž‹ƒ„‹Ž‹–›—†‡”–Š‹••‡…–‹‘—•–„‡‘–Š‡ƒ‘—–‘ˆ†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡ƒ‘—–”‡…‘˜‡”‡†ƒ†–Š‡„ƒ†
†‡„–†‹•ƒŽŽ‘™‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ
ȋ˜Ȍ ‹–Š†”ƒ™ƒŽ‘ˆƒ›ƒ‘—–ˆ”‘•’‡…‹ƒŽ”‡•‡”˜‡ǣŠ‡”‡ƒ†‡†—…–‹‘Šƒ•„‡‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆƒ›
•’‡…‹ƒŽ ”‡•‡”˜‡ …”‡ƒ–‡† ƒ† ƒ‹–ƒ‹‡† —†‡” …Žƒ—•‡• ȋ˜‹‹‹Ȍ ‘ˆ —„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ ‡…–‹‘ ͵͸ ƒ› ƒ‘—–
•—„•‡“—‡–Ž›™‹–Š†”ƒ™ˆ”‘•—…Š•’‡…‹ƒŽ”‡•‡”˜‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”
’”‘ˆ‡••‹‘ƒ†ƒ……‘”†‹‰Ž›„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡–ƒšƒ•–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š
ƒ‘—–‹•™‹–Š†”ƒ™Ǥ
 Š‡”‡ ƒ› ƒ‘—– ‹• ™‹–Š†”ƒ™ ˆ”‘ –Š‡ •’‡…‹ƒŽ ”‡•‡”˜‡ ‹ ƒ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡ „—•‹‡•• ‹• ‘
Ž‘‰‡” ‹ ‡š‹•–‡…‡ǡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• •—„Ǧ•‡…–‹‘ •ŠƒŽŽ ƒ’’Ž› ƒ• ‹ˆ –Š‡ „—•‹‡•• ‹• ‹ ‡š‹•–‡…‡ ‹ –Šƒ–
’”‡˜‹‘—•›‡ƒ”Ǥ
ȋ˜‹Ȍ ‡–‘ˆˆ‘ˆ‘••‡•‘ˆƒ‡ˆ—…–—•‹‡••ƒ‰ƒ‹•–‡‡‡†”‘ϐ‹–ǣŠ‡”‡–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘”‡ˆ‡””‡†
–‘‹–Š‹••‡…–‹‘‹•‘Ž‘‰‡”‹‡š‹•–‡…‡ƒ†–Š‡”‡‹•‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”’‘‹–•ȋ‹Ȍǡȋ‹˜Ȍƒ†ȋ˜Ȍ
‰‹˜‡ ƒ„‘˜‡ ‹ ”‡•’‡…– ‘ˆ –Šƒ– „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ǡ ƒ› Ž‘••ǡ ‘– „‡‹‰ ƒ Ž‘•• •—•–ƒ‹‡† ‹ •’‡…—Žƒ–‹‘
„—•‹‡••ǡ™Š‹…Šƒ”‘•‡‹–Šƒ–„—•‹‡••‘”’”‘ˆ‡••‹‘†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–…‡ƒ•‡†–‘‡š‹•–ƒ†
™Š‹…Š…‘—Ž†‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡‘ˆ–Šƒ–’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽƒ•ˆƒ”ƒ•ƒ›„‡ǡ„‡•‡–‘ˆˆ
ƒ‰ƒ‹•––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡•—„Ǧ•‡…–‹‘ƒˆ‘”‡•ƒ‹†Ǥ
”ƒ•ˆ‡”‘ˆ‘˜ƒ„Ž‡”‘’‡”–›ȏ‡…–‹‘Ͷ͵Ȑ
—””‡–Ž›ǡ™Š‡ƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰‹‘˜ƒ„Ž‡’”‘’‡”–›ǡ‹•–”ƒ•ˆ‡””‡†ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘™Š‹…Š‹•Ž‡••–Šƒ–Š‡
˜ƒŽ—‡ƒ†‘’–‡†ǡƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡„›ƒ›ƒ—–Š‘”‹–›‘ˆƒ–ƒ–‡
‘˜‡”‡–ˆ‘”–Š‡’—”’‘•‡‘ˆ’ƒ›‡–‘ˆ•–ƒ’
†—–›‹”‡•’‡…–‘ˆ•—…Š–”ƒ•ˆ‡”ǡ–Š‡•—…Š˜ƒŽ—‡ȋ•–ƒ’†—–›˜ƒŽ—‡Ȍ‹•–ƒ‡ƒ•ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘—†‡”
•‡…–‹‘ͷͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ǥ
–Šƒ•„‡‡’‘‹–‡†‘—––Š‹•˜ƒ”‹ƒ–‹‘„‡–™‡‡–Š‡•–ƒ’†—–›˜ƒŽ—‡ƒ†–Š‡˜ƒŽ—‡‘ˆ•ƒŽ‡…‘•‹†‡”ƒ–‹‘…ƒ‘……—”‹
”‡•’‡…–‘ˆ•‹‹Žƒ”’”‘’‡”–‹‡•‹–Š‡•ƒ‡ƒ”‡ƒ„‡…ƒ—•‡‘ˆƒ˜ƒ”‹‡–›‘ˆˆƒ…–‘”••—…Šƒ••Šƒ’‡‘ˆ’Ž‘–‘”Ž‘…ƒ–‹‘Ǥ
‡…‡‹‘”†‡”–‘‹‹‹•‡–Š‡Šƒ”†•Š‹’–‘–Š‡ƒ••‡••‡‡‹…ƒ•‡‘ˆ‰‡—‹‡–”ƒ•ƒ…–‹‘•‹–‹•’”‘˜‹†‡†–Šƒ–™Š‡”‡
–Š‡•–ƒ’†—–›˜ƒŽ—‡†‘‡•‘–‡š…‡‡†ͳͳͲΨȏ…”‡ƒ•‡†ˆ”‘ͳͲͷΨ–‘ͳͳͲΨ˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲȐ‘ˆ–Š‡
…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”ǡ–Š‡…‘•‹†‡”ƒ–‹‘•‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ
–Š‡–”ƒ•ˆ‡”•ŠƒŽŽǡˆ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–‹‰’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘–”ƒ•ˆ‡”‘ˆ•—…Šƒ••‡–Ǥ

‡™ƒ–‡•‹…ƒ•‡‘ˆ‡•‹†‡–‹ƒŽ‹–ȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͳȐ

 …ƒ•‡ ‘ˆ –”ƒ•ˆ‡” ‘ˆ ƒ ƒ••‡–ǡ „‡‹‰ ƒ ”‡•‹†‡–‹ƒŽ —‹– ‹ˆ –Š‡ •–ƒ’ †—–› ˜ƒŽ—‡ †‘‡• ‘– ‡š…‡‡† ͳʹͷΨ ‘ˆ –Š‡
…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰–Š‡ǡ•—…Š…‘•‹†‡”ƒ–‹‘•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”
–Š‡’—”’‘•‡‘ˆ…‘’—–‹‰’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘–”ƒ•ˆ‡”‘ˆ•—…Šƒ••‡–Ǥ
Š‡‡™”ƒ–‡‘ˆͳʹͷΨ‹•–‡ƒ†‘ˆͳͳͲΨ™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡‘Ž›‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǡƒ‡Ž›ǣ
 ʹʹͶ Lesson 4 Ȉ EP-TL

‹Ǥ –Š‡–”ƒ•ˆ‡”‘ˆ•—…Š”‡•‹†‡–‹ƒŽ—‹––ƒ‡•’Žƒ…‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰ˆ”‘–Š‡ͳʹ–Š†ƒ›‘ˆ‘˜‡„‡”ǡ
ʹͲʹͲƒ†‡†‹‰‘–Š‡͵Ͳ–Š†ƒ›‘ˆ —‡ǡʹͲʹͳ
‹‹Ǥ •—…Š–”ƒ•ˆ‡”‹•„›™ƒ›‘ˆϐ‹”•––‹‡ƒŽŽ‘–‡–‘ˆ–Š‡”‡•‹†‡–‹ƒŽ—‹––‘ƒ›’‡”•‘Ǣƒ†
‹‹‹Ǥ –Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ•—…Š–”ƒ•ˆ‡”†‘‡•‘–‡š…‡‡†–™‘…”‘”‡”—’‡‡•
‡ƒ‹‰‘ˆ‡•‹†‡–‹ƒŽ‹–ǣDz‡•‹†‡–‹ƒŽ‹–dz‡ƒ•ƒ‹†‡’‡†‡–Š‘—•‹‰—‹–™‹–Š•‡’ƒ”ƒ–‡ˆƒ…‹Ž‹–‹‡•ˆ‘”
Ž‹˜‹‰ǡ …‘‘‹‰ ƒ† •ƒ‹–ƒ”› ”‡“—‹”‡‡–ǡ †‹•–‹…–Ž› •‡’ƒ”ƒ–‡† ˆ”‘ ‘–Š‡” ”‡•‹†‡–‹ƒŽ —‹–• ™‹–Š‹ –Š‡ „—‹Ž†‹‰ǡ
™Š‹…Š‹•†‹”‡…–Ž›ƒ……‡••‹„Ž‡ˆ”‘ƒ‘—–‡”†‘‘”‘”–Š”‘—‰Šƒ‹–‡”‹‘”†‘‘”‹ƒ•Šƒ”‡†ŠƒŽŽ™ƒ›ƒ†‘–„›™ƒŽ‹‰
–Š”‘—‰Š–Š‡Ž‹˜‹‰•’ƒ…‡‘ˆƒ‘–Š‡”Š‘—•‡Š‘Ž†Ǥ
Š‡•‡’”‘˜‹•‹‘•†‘‘–ƒ’’Ž›–‘–”ƒ•ˆ‡”‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–›ǡŠ‡Ž†„›–Š‡–”ƒ•ˆ‡”‘”ƒ••–‘…Ǧ‹Ǧ–”ƒ†‡ǤŠ‡”‡
–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆƒƒ••‡–ȋ‘–Š‡”–Šƒ…ƒ’‹–ƒŽƒ••‡–Ȍǡ„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡ‹•Ž‡••–Šƒ
–Š‡•–ƒ’†—–›˜ƒŽ—‡ǡ–Š‡˜ƒŽ—‡•‘ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡„›ƒ›ƒ—–Š‘”‹–›‘ˆ•–ƒ–‡‰‘˜‡”‡–ˆ‘”–Š‡
’—”’‘•‡‘ˆ’ƒ›‡–‘ˆ•–ƒ’†—–›‹”‡•’‡…–‘ˆ•—…Š–”ƒ•ˆ‡”–Š‡˜ƒŽ—‡•‘ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡•ŠƒŽŽ
ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–‹‰‹…‘‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘ˆ’”‘ˆ‡••‹‘dz•ŠƒŽŽ„‡†‡‡‡†
–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ•—…Š–”ƒ•ˆ‡”Ǥ
Š‡”‡ –Š‡ †ƒ–‡ ‘ˆ ƒ ƒ‰”‡‡‡– ϐ‹š‹‰ –Š‡ ˜ƒŽ—‡ ‘ˆ …‘•‹†‡”ƒ–‹‘ ˆ‘” –Š‡ –”ƒ•ˆ‡” ‘ˆ –Š‡ ƒ••‡– ƒ† –Š‡ †ƒ–‡ ‘ˆ
”‡‰‹•–”ƒ–‹‘ ‘ˆ –Š‡ –”ƒ•ˆ‡” ‘ˆ –Š‡ ƒ••‡– ƒ”‡ ‘– •ƒ‡ǡ –Š‡ •–ƒ’ †—–› ˜ƒŽ—‡ ƒ› „‡ –ƒ‡ ƒ• ‘ –Š‡ †ƒ–‡ ‘ˆ –Š‡
ƒ‰”‡‡‡–ˆ‘”–”ƒ•ˆ‡”ƒ†‘–ƒ•‘–Š‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘ˆ‘”•—…Š–”ƒ•ˆ‡”Ǥ‘™‡˜‡”ǡ–Š‹•‡š…‡’–‹‘•ŠƒŽŽƒ’’Ž›
‘Ž›‹–Š‘•‡…ƒ•‡•™Š‡”‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘‘”ƒ’ƒ”––Š‡”‡‘ˆˆ‘”–Š‡–”ƒ•ˆ‡”Šƒ•„‡‡”‡…‡‹˜‡†„›™ƒ›‘ˆ
ƒ……‘—–’ƒ›‡‡…Š‡“—‡Ȁ„ƒ†”ƒˆ–‘”„›—•‡‘ˆ‡Ž‡…–”‘‹……Ž‡ƒ”‹‰•›•–‡–Š”‘—‰Šƒ„ƒƒ……‘—–‘”–Š”‘—‰Š•—…Š
‘–Š‡”’”‡•…”‹„‡†‡Ž‡…–”‘‹…‘†‡•‘‘”„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆ–Š‡ƒ‰”‡‡‡–Ǥ
The prescribed electronic modes include credit card, debit card, net banking, IMPS (Immediate payment Service), UPI
ȋ‹ϔ‹‡† ƒ›‡– –‡”ˆƒ…‡Ȍǡ 
 ȋ‡ƒŽ ‹‡
”‘•• ‡––Ž‡‡–Ȍǡ   ȋƒ–‹‘ƒŽ Ž‡…–”‘‹… —†• ”ƒ•ˆ‡”Ȍǡ ƒ†
ȋŠƒ”ƒ––‡”ˆƒ…‡ˆ‘”‘‡›Ȍƒ†Šƒ”ƒ›ȏ‘–‹ϔ‹…ƒ–‹‘‘Ǥ;Ȁ͸Ͷ͸Ͷ†ƒ–‡†͸ͿǤͶͷǤ͸Ͷ͸ͶȐǤ

   ȏͶ͵Ȑ
Š‹• •‡…–‹‘ ’”‘˜‹†‡• –Šƒ– ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ’—„Ž‹… ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘ ‘” ƒ •…Š‡†—Ž‡† „ƒ ‘” ƒ •–ƒ–‡ ϐ‹ƒ…‹ƒŽ
…‘”’‘”ƒ–‹‘‘”ƒ•–ƒ–‡‹†—•–”‹ƒŽ‹˜‡•–‡–…‘”’‘”ƒ–‹‘ǡ–Š‡‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘•—…Š…ƒ–‡‰‘”‹‡•‘ˆ„ƒ†
ƒ††‘—„–ˆ—Ž†‡„–•ƒ•ƒ›„‡’”‡•…”‹„‡†Šƒ˜‹‰”‡‰ƒ”†–‘–Š‡‰—‹†‡Ž‹‡•‹••—‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ‹
”‡Žƒ–‹‘–‘•—…Š†‡„–••ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–‹•…”‡†‹–‡†–‘’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–
„› •—…Š ‹•–‹–—–‹‘ ”‡ˆ‡””‡† ƒ„‘˜‡ ˆ‘” –Šƒ– ›‡ƒ” ‘” ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š ‹– ‹• ƒ…–—ƒŽŽ› ”‡…‡‹˜‡† „› –Š‡
™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
‹–Šƒ˜‹‡™–‘‹’”‘˜‡–Š‡˜‹ƒ„‹Ž‹–›‘ˆŽ‡ƒ•‹‰ϐ‹ƒ…‡…‘’ƒ‹‡•ǡ–Š‡•‡…–‹‘Šƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ–‹
…ƒ•‡‘ˆƒ’—„Ž‹……‘’ƒ›ǡ–Š‡‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‹”‡Žƒ–‹‘–‘•—…Š…ƒ–‡‰‘”‹‡•‘ˆ„ƒ†ƒ††‘—„–ˆ—Ž†‡„–•ƒ•
ƒ› „‡ ’”‡•…”‹„‡† Šƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ ‰—‹†‡Ž‹‡• ‹••—‡† „› –Š‡ ƒ–‹‘ƒŽ ‘—•‹‰ ƒ ‡•–ƒ„Ž‹•Š‡† —†‡” –Š‡
ƒ–‹‘ƒŽ‘—•‹‰ƒ…–ǡͳͻͺ͹‹”‡Žƒ–‹‘–‘•—…Š†‡„–•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–
‹•…”‡†‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–„›–Š‡•ƒ‹†’—„Ž‹……‘’ƒ›ˆ‘”–Šƒ–›‡ƒ”‘”‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–
‹•ƒ…–—ƒŽŽ›”‡…‡‹˜‡†„›‹–ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǤŠ‡„‡‡ϐ‹–‘ˆ‡…–‹‘Ͷ͵•ŠƒŽŽƒŽ•‘„‡‡š–‡†‡†–‘…‘Ǧ‘’‡”ƒ–‹˜‡
„ƒ•ȋ‘–Š‡”–Šƒƒ’”‹ƒ”›ƒ‰”‹…—Ž–—”ƒŽ…”‡†‹–•‘…‹‡–›‘”ƒ’”‹ƒ”›…‘Ǧ‘’‡”ƒ–‹˜‡ƒ‰”‹…—Ž–—”ƒŽƒ†”—”ƒŽ†‡˜‡Ž‘’‡–
„ƒȌǤ

ȏͶͶȐ

Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒ›„—•‹‡••‘ˆ‹•—”ƒ…‡—•–ǡƒ……‘”†‹‰–‘‡…–‹‘ͶͶǡ„‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡”—Ž‡•…‘–ƒ‹‡†‹–Š‡ ‹”•–…Š‡†—Ž‡–‘–Š‡…‘‡Ǧ–ƒš…–Ǥ ‘”–Š‡’—”’‘•‡‘ˆ–Š‡…‘’—–ƒ–‹‘ǡ‹–‹•‹ƒ–‡”‹ƒŽ
™Š‡–Š‡”–Š‡‹•—”ƒ…‡„—•‹‡••‹•…ƒ””‹‡†‘„›—–—ƒŽ‹•—”ƒ…‡…‘’ƒ›‘”„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‘”„›ƒ›
‘–Š‡”’‡”•‘ǤŠ‡”—Ž‡•…‘–ƒ‹‡†‹–Š‡…Š‡†—Ž‡™‘—Ž†ƒ’’Ž›‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰–‘–Š‡…‘–”ƒ”›…‘–ƒ‹‡†
‹–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–”‡Žƒ–‹‰–‘–Š‡…‘’—–ƒ–‹‘‘ˆ‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Ǯ–‡”‡•–
‘ ‡…—”‹–‹‡•ǯǡ Ǯ‹…‘‡ ˆ”‘ Š‘—•‡ ’”‘’‡”–›ǯǡ Ǯ…ƒ’‹–ƒŽ ‰ƒ‹•ǯǡ ‘” Ǯ‹…‘‡ ˆ”‘ ‘–Š‡” •‘—”…‡•ǯ ‘” —†‡” –Š‡ Š‡ƒ†
Ǯ‹…‘‡ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘ǯǤ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹʹͷ

  ȏͶͶȐ

ͳȌ ˜‡”›’‡”•‘…ƒ””›‹‰‘–Š‡Ž‡‰ƒŽȀ‡†‹…ƒŽȀ‡‰‹‡‡”‹‰Ȁƒ”…Š‹–‡…–—”ƒŽ’”‘ˆ‡••‹‘Ȁƒ……‘—–ƒ…›Ȁ–‡…Š‹…ƒŽ
…‘•—Ž–ƒ…›Ȁ‹–‡”‹‘”†‡…‘”ƒ–‹‘ǡ‘”ƒ›‘–Š‡”’”‘ˆ‡••‹‘ƒ•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•
ȋȌǡ‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ—•–•–ƒ–—–‘”‹Ž›ƒ‹–ƒ‹•—…Š„‘‘•‘ˆƒ……‘—–ƒ†‘–Š‡”†‘…—‡–•ƒ•ƒ›
‡ƒ„Ž‡–Š‡••‡••‹‰ˆϐ‹…‡”–‘…‘’—–‡Š‹•–‘–ƒŽ‹…‘‡—†‡”–Š‡…–ǡ
Ȉ ˆ–‘–ƒŽ‰”‘••”‡…‡‹’–•‡š…‡‡†••ǤͳǡͷͲǡͲͲͲ‹ƒŽŽ–Š‡–Š”‡‡›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
Ȉ ‹ˆǡ ™Š‡”‡ –Š‡ ’”‘ˆ‡••‹‘ Šƒ• „‡‡ ‡™Ž› •‡– —’ ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ”ǡ Š‹• ‰”‘•• ”‡…‡‹’–• ƒ”‡ Ž‹‡Ž› –‘
‡š…‡‡†•ǤͳǡͷͲǡͲͲͲ‹–Šƒ–›‡ƒ”
ʹȌ †‹˜‹†—ƒŽ‘” …ƒ””›‹‰‘ƒ›„—•‹‡••Ȁ’”‘ˆ‡••‹‘‘–Š‡”–Šƒ–Š‘•‡•’‡…‹ϐ‹‡†ƒ„‘˜‡ǡ—•–ƒ‹–ƒ‹
–Š‡„‘‘•‘ˆƒ……‘—–•‡…‡••ƒ”›ˆ‘”…‘’—–ƒ–‹‘ƒ†ƒ••‡••‡–ǡ
Ȉ ‹ˆ–Š‡‹…‘‡ˆ”‘„—•‹‡••Ȁ’”‘ˆ‡••‹‘‡š…‡‡†•ʹͷͲǡͲͲͲ–Š‡–‘–ƒŽ–—”‘˜‡”Ȁ‰”‘••”‡…‡‹’–•ƒ•–Š‡
…ƒ•‡ƒ›„‡ǡ‡š…‡‡†•ʹͷǡͲͲǡͲͲͲ‹ƒ›ͳ‘ˆ–Š‡͵›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”ƒ†
Ȉ ‹ˆ–Š‡„—•‹‡••Ȁ’”‘ˆ‡••‹‘‹•‡™Ž›•‡–—’ǡ‹ˆ–Š‡‹…‘‡‹•Ž‹‡Ž›–‘‡š…‡‡†•ǤʹǡͷͲǡͲͲͲ‘”Š‹•–‘–ƒŽ
•ƒŽ‡•ǡ –—”‘˜‡” ‘” ‰”‘•• ”‡…‡‹’–•ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ ‹ –Š‡ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ƒ”‡ Ž‹‡Ž› –‘
‡š…‡‡†•ǤʹͷǡͲͲǡͲͲͲ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”
͵Ȍ ˜‡”› ’‡”•‘ ‘–Š‡” –Šƒ ƒ †‹˜‹†—ƒŽ Ȁ   …ƒ””›‹‰ ‘ ƒ› „—•‹‡•• Ȁ ’”‘ˆ‡••‹‘ ‘–Š‡” –Šƒ –Š‘•‡
•’‡…‹ϐ‹‡† ƒ„‘˜‡ǡ —•– ƒ‹–ƒ‹ –Š‡ „‘‘• ‘ˆ ƒ……‘—–• ‡…‡••ƒ”› ˆ‘” …‘’—–ƒ–‹‘ ƒ† ƒ••‡••‡–ǡ ‹ˆ –Š‡
‹…‘‡ˆ”‘„—•‹‡••Ȁ’”‘ˆ‡••‹‘‡š…‡‡†•ͳʹͲǡͲͲͲ–Š‡–‘–ƒŽ–—”‘˜‡”Ȁ‰”‘••”‡…‡‹’–•ƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ‡š…‡‡†•ͳͲǡͲͲǡͲͲͲ‹ƒ›ͳ‘ˆ–Š‡͵›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ƒ……‘—–‹‰›‡ƒ”ƒ†‹ˆ–Š‡
„—•‹‡•• Ȁ ’”‘ˆ‡••‹‘ ‹• ‡™Ž› •‡– —’ǡ ‹ˆ –Š‡ ‹…‘‡ Ȁ •ƒŽ‡• –—”‘˜‡” ‹• Ž‹‡Ž› –‘ ‡š…‡‡† –Š‡ –Š”‡•Š‘Ž†•
‡–‹‘‡†‹Ǥ‡Ǥ•ǤͳʹͲǡͲͲͲ–Š‡–‘–ƒŽ–—”‘˜‡”Ȁ‰”‘••”‡…‡‹’–•ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‡š…‡‡†••ǤͳͲǡͲͲǡͲͲͲǡ‹
–Š‡”‡˜‹‘—•‡ƒ”Ǥ
ͶȌ Š‡”‡’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘„—•‹‡••ƒ”‡†‡‡‡†–‘„‡’”‘ϐ‹–•ƒ†‰ƒ‹•—†‡”•‡…–‹‘ͶͶ‘”‡…–‹‘
ͶͶ‘”‡…–‹‘ͶͶƒ†ƒ••‡••‡‡Šƒ•…Žƒ‹‡†Š‹•‹…‘‡–‘„‡Ž‘™‡”–Šƒ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•–Š‡•—…Š
’”‘ϐ‹–•ƒ†‰ƒ‹••ŠƒŽŽ„‡†‡‡‡†–‘„‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆŠ‹•„—•‹‡••†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‘”
ͷȌ Š‡”‡–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͶȋͶȌ‘”•‡…–‹‘ͶͶƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘Š‹ƒ†Š‹•–‘–ƒŽ‹…‘‡‡š…‡‡†•
–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡–ƒšǤ
†‡”’”‡•—’–‹˜‡ƒ••‡••‡–—†‡”•‡…–‹‘•‡–‹‘‡†ƒ„‘˜‡ǡ‹ˆƒ••‡••‡‡…Žƒ‹•–Šƒ–Š‹•‹…‘‡‹•Ž‘™‡”–Šƒ
–Šƒ–•’‡…‹ϐ‹‡†—†‡”–Š‡•‡•‡…–‹‘•ǡƒ••‡••‡‡‹•”‡“—‹”‡†–‘‰‡–•Š‹•ƒ……‘—–•ƒ—†‹–‡†„›ƒŠƒ”–‡”‡†……‘—–ƒ–ƒ†
…‘’›‘ˆ–Šƒ–”‡’‘”–‡‡†•–‘„‡ƒ––ƒ…Š‡†ƒŽ‘‰™‹–ŠŠ‹•”‡–—”‘ˆ‹…‘‡ǤŠ‡”‡ˆ‘”‡–‘‰‡–•Š‹•ƒ……‘—–•ƒ—†‹–‡†Š‡
‡‡†• –‘ ƒ‹–ƒ‹ •—…Š „‘‘• –‘ •—„•–ƒ–‹ƒ–‡ Š‹• …Žƒ‹ ƒ† ƒŽ•‘ –‘ ‡ƒ„Ž‡ Šƒ”–‡”‡† ……‘—–ƒ– –‘ ‹••—‡ —†‹–
‡’‘”––‘–Š‹•‡ˆˆ‡…–Ǥ
Š‡Šƒ•–Š‡ƒ—–Š‘”‹–›—†‡”–Š‡ƒ…––‘’”‡•…”‹„‡–Š‡„‘‘•‘ˆƒ……‘—–•‡…‡••ƒ”‹Ž›–‘„‡ƒ‹–ƒ‹‡†Šƒ˜‹‰
”‡‰ƒ”†–‘–Š‡ƒ–—”‡‘ˆ„—•‹‡••Ȁ’”‘ˆ‡••‹‘ǡ‹…Ž—†‹‰–Š‡‹”ˆ‘”ƒ–ƒ†–Š‡†‡–ƒ‹Ž•–‘„‡‡–‹‘‡†–Š‡”‡‹ǡƒ†
–Š‡’Žƒ…‡™Š‡”‡–Š‡•‡‡‡†–‘„‡ƒ‹–ƒ‹‡†Ǥ
Š‡„‘‘•‘ˆƒ……‘—–•ƒ†‘–Š‡”†‘…—‡–••ŠƒŽŽ„‡‡’–ƒ†ƒ‹–ƒ‹‡†ˆ‘”ƒ’‡”‹‘†‘ˆ͸›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ
”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”Ǥ ‘”†‡–ƒ‹Ž••–—†‡–•ƒ›”‡ˆ‡”–‘—Ž‡͸ ƒŽ•‘ˆ‘”•’‡…‹ϐ‹‡†„‘‘•–‘„‡ƒ‹–ƒ‹‡†Ǥ

  ȏͶͶȐ

‡…–‹‘ͶͶƒ‡•‹–‘„Ž‹‰ƒ–‘”›ˆ‘”ƒ’‡”•‘–‘‰‡–Š‹•ƒ……‘—–•ƒ—†‹–‡†„‡ˆ‘”‡–Š‡Dz•’‡…‹ϐ‹‡††ƒ–‡dz„›ƒDzŠƒ”–‡”‡†
……‘—–ƒ–dzǢ‹ˆ–Š‡–‘–ƒŽ•ƒŽ‡•ǡ–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•‹„—•‹‡••ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‡š…‡‡†•ͳ…”‘”‡‘”‹ˆ
Š‹•‰”‘••”‡…‡‹’–•ˆ”‘’”‘ˆ‡••‹‘ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‡š…‡‡†•ͷͲŽƒŠ•ǤŠ‹•‹…Ž—†‡•’”‘ˆ‡••‹‘ƒŽ•™Š‘ƒ”‡
…‘˜‡”‡† —†‡” –Š‡ ’”‘˜‹•‹‘• ‘ˆ ’”‡•—’–‹˜‡ –ƒšƒ–‹‘ ƒ† …Žƒ‹ –Šƒ– –Š‡‹” ’”‘ϐ‹–• ƒ† ‰ƒ‹• ˆ”‘ „—•‹‡•• Ȁ
’”‘ˆ‡••‹‘‹•Ž‘™‡”–Šƒ™Šƒ–…‘’—–‡†—†‡”’”‡•—’–‹˜‡„ƒ•‹•Ǥ
 ‘”†‡” –‘ ”‡†—…‡ –Š‡ …‘’Ž‹ƒ…‡ „—”†‡ ‘ –Š‡ •ƒŽŽ ƒ† ‡†‹— ‡–‡”’”‹•‡• …ƒ””›‹‰ ‘ –Š‡ —•‹‡••ǡ –Š‡
–Š”‡•Š‘Ž†‘ˆ–—”‘˜‡”Ȁ•ƒŽ‡•Ž‹‹–ˆ‘”–ƒšƒ—†‹–”‡“—‹”‡‡–•Šƒ•„‡‡‹…”‡ƒ•‡†ˆ”‘ͳ”‘”‡–‘ͳͲ”‘”‡•ȏŽ‹‹–
Šƒ•„‡‡‹…”‡ƒ•‡†ˆ”‘ͷ…”‘”‡–‘ͳͲ…”‘”‡˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͳȐǡ•—„Œ‡…––‘ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
 ʹʹ͸ Lesson 4 Ȉ EP-TL

ƒǤ ‰‰”‡‰ƒ–‡‘ˆƒŽŽƒ‘—–•”‡…‡‹˜‡†‹…Ž—†‹‰ƒ‘—–”‡…‡‹˜‡†ˆ‘”•ƒŽ‡•ǡ–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”ǡ‹…ƒ•Šǡ†‘‡•‘–‡š…‡‡†ͷΨ‘ˆ–Š‡•ƒ‹†ƒ‘—–Ǣƒ†
„Ǥ ‰‰”‡‰ƒ–‡‘ˆƒŽŽ’ƒ›‡–•ƒ†‡‹…Ž—†‹‰ƒ‘—–‹…—””‡†ˆ‘”‡š’‡†‹–—”‡ǡ‹…ƒ•Šǡ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”
†‘‡•‘–‡š…‡‡†ͷΨ‘ˆ–Š‡•ƒ‹†’ƒ›‡–Ǥȏ•‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
Š‡’”‘˜‹•‹‘ƒŽ•‘…ƒ•–•ƒ‘„Ž‹‰ƒ–‹‘‘•—…Š’‡”•‘•–‘ˆ—”‹•Š„›–Š‡Dz•’‡…‹ϐ‹‡††ƒ–‡dzǡƒ”‡’‘”–‘ˆ–Š‡ƒ—†‹–‹–Š‡
’”‡•…”‹„‡† ˆ‘” †—Ž› •‹‰‡† ƒ† ˜‡”‹ϐ‹‡† „› –Š‡ Šƒ”–‡”‡† ……‘—–ƒ– •‡––‹‰ ˆ‘”–Š •—…Š ’ƒ”–‹…—Žƒ”• ƒ• ƒ› „‡
’”‡•…”‹„‡†„›”—Ž‡•ƒ†‡‹–Š‹•„‡ŠƒŽˆ„›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•Ǥȋ ‘”͵Ȁ͵Ȁ͵ȌǤ
Š‡”‡“—‹”‡‡–‘ˆƒ—†‹–—Ȁ•ͶͶǡ†‘‡•ǯ–ƒ’’Ž›–‘ƒ’‡”•‘™Š‘†‡…Žƒ”‡•’”‘ϐ‹–•Ȁ‰ƒ‹•‘ƒ’”‡•—’–‹˜‡„ƒ•‹•ǡ
—Ȁ•ͶͶǡƒ†Š‹•–‘–ƒŽ•ƒŽ‡•Ȁ–—”‘˜‡”Ȁ‰”‘••”‡…‡‹’–•†‘‡•ǯ–‡š…‡‡†ʹ”Ǥ
’‡…‹ϐ‹‡†ƒ–‡‹•‘‡‘–Š’”‹‘”–‘–Š‡†—‡†ƒ–‡ˆ‘”ϐ‹Ž‹‰‡–—”‘ˆ…‘‡—Ȁ•ͳ͵ͻȋͳȌ™Š‹…Š•ŠƒŽŽ„‡ƒ•—†‡”ǣ

S. ›’‡‘ˆ••‡••‡‡ —‡ƒ–‡—Ȁ•ͶͶˆ‘” —‡ƒ–‡—Ȁ•ͳ͵ͻȋͳȌˆ‘”

No. ˆ—”‹•Š‹‰ƒš—†‹– ”‡’‘”– ˆ—”‹•Š‹‰‡–—”‘ˆ …‘‡
ͳǤ Š‡”‡ –Š‡ ƒ••‡••‡‡ ‹• ͵ͳ•–…–‘„‡”‘ˆ–Š‡”‡Ž‡˜ƒ– ͵Ͳ–Š‘˜‡„‡”‘ˆ–Š‡”‡Ž‡˜ƒ–
”‡“—‹”‡† –‘ˆ—”‹•Š ƒ ”‡’‘”– ••‡••‡–‡ƒ” ••‡••‡–‡ƒ”
‘ˆ ƒ  —Ȁ• ͻʹ ”‡Žƒ–‹‰–‘
‹–‡”ƒ–‹‘ƒŽ –”ƒ•ƒ…–‹‘ ‘”
•’‡…‹ϐ‹‡††‘‡•–‹… –”ƒ•ƒ…–‹‘
ȋ”ƒ•ˆ‡” ”‹…‹‰…ƒ•‡•Ȍ
ʹǤ ›‘–Š‡”…ƒ•‡ ͵Ͳ–Š ‡’–‡„‡” ‘ˆ –Š‡”‡Ž‡˜ƒ– ͵ͳ•–…–‘„‡”‘ˆ–Š‡”‡Ž‡˜ƒ–
••‡••‡–‡ƒ” ••‡••‡–‡ƒ”

   

   
     
ȏͶͶȐ
Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡–‘”‡•‹†‡–†‹˜‹†—ƒŽǡ ǡ ‹”ȋ‡š…Ž—†‹‰Ȍ…ƒ””›‹‰‘ƒ›
„—•‹‡••‡š…‡’––Š‡„—•‹‡••‘ˆ’Ž›‹‰ǡŠ‹”‹‰‘”Ž‡ƒ•‹‰‰‘‘†•…ƒ””‹ƒ‰‡•”‡ˆ‡””‡†–‘‹•‡…–‹‘ͶͶƒ†™Š‘•‡–‘–ƒŽ
–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•‹–Š‡’”‡˜‹‘—•›‡ƒ”†‘‡•‘–‡š…‡‡†ƒƒ‘—–‘ˆʹ”‘”‡•ǤŠ‹••‡…–‹‘ƒ‹•ƒ–’”‘˜‹†‹‰
”‡Ž‹‡ˆ –‘ ƒŽŽ –Š‡ •ƒŽŽ „—•‹‡••‡• ˆ”‘ ƒ‹–ƒ‹‹‰ –Š‡ „‘‘• ‘ˆ ƒ……‘—–• ƒ† –‘ ”‡†—…‡ –Š‡ …‘’Ž‹ƒ…‡ ƒ†
ƒ†‹‹•–”ƒ–‹˜‡„—”†‡Ǥ
Ȉ  •— ‡“—ƒŽ –‘ ͺΨ ‘ˆ –Š‡ –‘–ƒŽ –—”‘˜‡” ‘” ‰”‘•• ”‡…‡‹’–• ‘ˆ –Š‡ ƒ••‡••‡‡• ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ” •ŠƒŽŽ „‡
†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ•—…Š„—•‹‡••…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ
„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ
 ”‡•—’–‹˜‡ ‹…‘‡ —Ȁ• ͶͶ •ŠƒŽŽ „‡ …ƒŽ…—Žƒ–‡† ̷ ͸Ψ ‹•–‡ƒ† ‘ˆ ͺΨ ‹ ”‡•’‡…– ‘ˆ –Š‘•‡ ’‘”–‹‘• ‘ˆ
–—”‘˜‡”Ȁ•ƒŽ‡•Ȁ‰”‘••”‡…‡‹’–•‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ƒȌ —”‘˜‡”Ȁ•ƒŽ‡•Ȁ‰”‘••”‡…‡‹’–•‹•”‡…‡‹˜‡†„›ƒƒ……‘—–’ƒ›‡‡…Š‡“—‡Ȁ†”ƒˆ–Ȁ–Š”‘—‰Šƒ„ƒ
ƒ……‘—–‘”•—…Š‘–Š‡”‘†‡•ƒ•’”‡•…”‹„‡†—†‡”—Ž‡͸Ǥ
„Ȍ Š‡ƒ„‘˜‡’ƒ›‡–‹•”‡…‡‹˜‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆ”‡–—”
—Ȁ•ͳ͵ͻȋͳȌ‹–Š‡ƒ••‡••‡–›‡ƒ”Ǥ
Ȉ ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘–Š‡ƒ••‡••‡‡•—†‡”•‡…–‹‘•͵Ͳ–‘͵ͺƒ†–Š‡•ƒŽƒ”›ƒ†‹–‡”‡•–’ƒ‹†–‘–Š‡
’ƒ”–‡”••ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ˆ‘”†‡†—…–‹‘•—„Œ‡…––‘–Š‡…‘†‹–‹‘•ƒ†Ž‹‹–••’‡…‹ϐ‹‡†‹•‡…–‹‘ͶͲȋ„ȌǤ
Ȉ Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆƒ›ƒ••‡–‘ˆƒ‡Ž‹‰‹„Ž‡„—•‹‡•••ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡…ƒŽ…—Žƒ–‡†ƒ•‹ˆ–Š‡
‡Ž‹‰‹„Ž‡ƒ••‡••‡‡•Šƒ†…Žƒ‹‡†ƒ†Šƒ†„‡‡ƒ…–—ƒŽŽ›ƒŽŽ‘™‡†–Š‡†‡†—…–‹‘‹”‡•’‡…–‘ˆ–Š‡†‡’”‡…‹ƒ–‹‘ˆ‘”
‡ƒ…Š‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”•Ǥ
Ȉ Š‡‹–‡–‘ˆ–Š‹••‡…–‹‘‹•–‘”‡†—…‡ƒ†‹‹•–”ƒ–‹˜‡ƒ†…‘’Ž‹ƒ…‡„—”†‡‘•ƒŽŽ„—•‹‡••‡•ǡƒ†”‡Ž‹‡˜‡
–Š‡ˆ”‘–Š‡”‡“—‹”‡‡–‘ˆƒ‹–‡ƒ…‡‘ˆ„‘‘•‘ˆƒ……‘—–•ǤŠ‡”‡ˆ‘”‡ǡ’‡‘’Ž‡‘’–‹‰ˆ‘”–ƒšƒ–‹‘‘
’”‡•—’–‹˜‡„ƒ•‹•ƒ”‡‘–”‡“—‹”‡†–‘ƒ‹–ƒ‹„‘‘•‘ˆƒ……‘—–—Ȁ•ͶͶ‘”‰‡––Š‡ƒ—†‹–‡†—Ȁ•ͶͶǤ
••‡••‡‡–‘ƒ‹–ƒ‹ƒ……‘—–•ƒ†‰‡––Š‡ƒ—†‹–‡†ǡ‹ˆŠ‡…Žƒ‹•–Š‡’”‘ϐ‹–•–‘„‡Ž‡••–Šƒ͸Ψ‘”ͺΨȋƒ•
ƒ’’Ž‹…ƒ„Ž‡Ȍ‘ˆ–Š‡‰”‘••”‡…‡‹’–•Ǥ
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹʹ͹

ƒ••‡••‡‡‘’–‹‰ˆ‘”•‡…–‹‘ͶͶ‹•”‡“—‹”‡†–‘’ƒ›ƒ†˜ƒ…‡–ƒš„›ͳͷ–Šƒ”…Šǡ‡˜‡”› Ǥ
‡”•‘•‘–‡Ž‹‰‹„Ž‡ˆ‘””‡•—’–‹˜‡ƒšƒ–‹‘…Š‡‡ǣŠ‡ˆ‘ŽŽ‘™‹‰’‡”•‘•ƒ”‡•’‡…‹ϐ‹…ƒŽŽ›‡š…Ž—†‡†ˆ”‘–Š‡
ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ–Š‡’”‡•—’–‹˜‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͶǦ
ȋƒȌ ƒ ’‡”•‘ …ƒ””›‹‰ ‘ ’”‘ˆ‡••‹‘ ƒ• ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͶͶȋͳȌǡ ‹Ǥ‡Ǥǡ Ž‡‰ƒŽǡ ‡†‹…ƒŽǡ ‡‰‹‡‡”‹‰ ‘”
ƒ”…Š‹–‡…–—”ƒŽ’”‘ˆ‡••‹‘‘”–Š‡’”‘ˆ‡••‹‘‘ˆƒ……‘—–ƒ…›‘”–‡…Š‹…ƒŽ…‘•—Ž–ƒ…›‘”‹–‡”‹‘”†‡…‘”ƒ–‹‘‘”
ƒ›‘–Š‡”’”‘ˆ‡••‹‘ƒ•‹•‘–‹ϐ‹‡†„›–Š‡‘ƒ”†ȋƒ‡Ž›ǡƒ—–Š‘”‹œ‡†”‡’”‡•‡–ƒ–‹˜‡•ǡϐ‹Žƒ”–‹•–•ǡ…‘’ƒ›
•‡…”‡–ƒ”‹‡•ƒ†’”‘ˆ‡••‹‘‘ˆ‹ˆ‘”ƒ–‹‘–‡…Š‘Ž‘‰›Šƒ˜‡„‡‡‘–‹ϐ‹‡†„›–Š‡‘ƒ”†ˆ‘”–Š‹•’—”’‘•‡ȌǢ
ȋ„Ȍ ƒ’‡”•‘‡ƒ”‹‰‹…‘‡‹–Š‡ƒ–—”‡‘ˆ…‘‹••‹‘‘”„”‘‡”ƒ‰‡Ǣ‘”
ȋ…Ȍ ƒ’‡”•‘…ƒ””›‹‰‘ƒ›ƒ‰‡…›„—•‹‡••Ǥ

ŽŽ—•–”ƒ–‹‘Ͷǣ

–Š‡‡šƒ’Ž‡„‡Ž‘™ǡ–Š‡ƒ••‡••‡‡Šƒ•‘’–‡†ˆ‘”’”‡•—’–‹˜‡–ƒšƒ–‹‘‹ʹͲͳͻǦʹͲƒ†ʹͲʹͳǦʹʹ„—–‹
ʹͲʹʹǦʹ͵ǡ•‹…‡Š‹•…‘’—–‡†‰ƒ‹•ˆ”‘„—•‹‡••™‡”‡Ž‘™‡”–Šƒ–Š‡’”‡•—’–‹˜‡ǡŠ‡†‹†ǯ–‘’–ˆ‘”‹–Ǥ‡…‡
ˆ‘”ͷǯ••—„•‡“—‡––‘–Šƒ–›‡ƒ”ǡ‹Ǥ‡Ǥǡˆ”‘ʹͲʹʹǦʹ͵–‘ʹͲʹ͸Ǧʹ͹ǡŠ‡™‹ŽŽ‘–„‡ƒ„Ž‡–‘‘’–ˆ‘”’”‡•—’–‹˜‡
„ƒ•‹•—Ȁ•ͶͶǤ



ƒ”–‹…—Žƒ”• ʹͲͳͻǦʹͲ ʹͲʹͳǦʹʹ ʹͲʹʹǦʹ͵

”‘••‡…‡‹’–• ͳǡͺͲǡͲͲǡͲͲͲ ͳǡͻͲǡͲͲǡͲͲͲ ʹǡͲͲǡͲͲǡͲͲͲ
”‡•—’–‹˜‡’–‡†   N
ƒšƒ–‡ ͺΨ ͺΨ ‘–’’Ž‹…ƒ„Ž‡
‡‡‡†…‘‡ˆ‘”ƒšƒ–‹‘ ͳͶǡͶͲǡͲͲͲ ͳͷǡʹͲǡͲͲͲ ͳͲǡͲͲǡͲͲͲ
‘‘•‘ˆ……‘—–•Ƭ—†‹– N N 

  ȏͶͶȐ

Š‹••‡…–‹‘ƒŽŽ‘™•’”‡•—’–‹˜‡„ƒ•‹•ǡˆ‘”ƒƒ••‡••‡‡„‡‹‰ƒ‹†‹˜‹†—ƒŽǡ‹†——†‹˜‹†‡†ˆƒ‹Ž›‘”ƒ’ƒ”–‡”•Š‹’
ϐ‹” ‘–Š‡” –Šƒ ƒ Ž‹‹–‡† Ž‹ƒ„‹Ž‹–› ’ƒ”–‡”•Š‹’ ƒ• †‡ϐ‹‡† —†‡” …Žƒ—•‡ ȋȌ ‘ˆ •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ʹ ‘ˆ –Š‡
‹‹–‡†‹ƒ„‹Ž‹–›ƒ”–‡”•Š‹’…–ǡʹͲͲͺǡ™Š‘‹•ƒ”‡•‹†‡–‹†‹ƒ™Š‘‹•‡‰ƒ‰‡†‹–Š‡ˆ‘ŽŽ‘™‹‰’”‘ˆ‡••‹‘•ǣŽ‡‰ƒŽ
Ȁ‡†‹…ƒŽȀ‡‰‹‡‡”‹‰Ȁƒ”…Š‹–‡…–—”ƒŽȀƒ……‘—–ƒ…›Ȁ–‡…Š‹…ƒŽ…‘•—Ž–ƒ…›Ȁ‹–‡”‹‘”†‡…‘”ƒ–‹‘ǡ‘”ƒ›‘–Š‡”
’”‘ˆ‡••‹‘ƒ•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•ȋȌǡ‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ƒ†™Š‘•‡‰”‘••”‡…‡‹’–•
†‘‡•‘–‡š…‡‡†ͷͲǡͲͲǡͲͲͲ‹–Š‡Ǥ
ͷͲΨ‘ˆ–Š‡–‘–ƒŽ‰”‘••”‡…‡‹’–•‘”•—…ŠŠ‹‰Š‡”•—ƒ•ƒ›„‡†‡…Žƒ”‡†„›–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡†‡‡‡†ƒ•‹…‘‡
—†‡”–Š‡Š‡ƒ†”‘ϐ‹–ƒ†
ƒ‹•‘ˆ—•‹‡••ƒ†”‘ˆ‡••‹‘ȋ
ȌǤ
‘ †‡†—…–‹‘ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† –‘ –Š‡ ƒ••‡••‡‡• —†‡” •‡…–‹‘• ͵Ͳ –‘ ͵ͺ ƒ† –Š‡ •ƒŽƒ”› ƒ† ‹–‡”‡•– ’ƒ‹† –‘ –Š‡
’ƒ”–‡”••ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ˆ‘”†‡†—…–‹‘•—„Œ‡…––‘–Š‡…‘†‹–‹‘•ƒ†Ž‹‹–••’‡…‹ϐ‹‡†‹•‡…–‹‘ͶͲȋ„ȌǤ
Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆƒ›ƒ••‡–‘ˆƒ‡Ž‹‰‹„Ž‡„—•‹‡•••ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡…ƒŽ…—Žƒ–‡†ƒ•‹ˆ–Š‡‡Ž‹‰‹„Ž‡
ƒ••‡••‡‡•Šƒ†…Žƒ‹‡†ƒ†Šƒ†„‡‡ƒ…–—ƒŽŽ›ƒŽŽ‘™‡†–Š‡†‡†—…–‹‘‹”‡•’‡…–‘ˆ–Š‡†‡’”‡…‹ƒ–‹‘ˆ‘”‡ƒ…Š‘ˆ–Š‡
”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”•Ǥ
Š‡‹–‡–‘ˆ–Š‹••‡…–‹‘‹•–‘”‡†—…‡ƒ†‹‹•–”ƒ–‹˜‡ƒ†…‘’Ž‹ƒ…‡„—”†‡‘•ƒŽŽ„—•‹‡••‡•ǡƒ†”‡Ž‹‡˜‡–Š‡
ˆ”‘–Š‡”‡“—‹”‡‡–‘ˆƒ‹–‡ƒ…‡‘ˆ„‘‘•‘ˆƒ……‘—–•ǤŠ‡”‡ˆ‘”‡ǡ’‡‘’Ž‡‘’–‹‰ˆ‘”–ƒšƒ–‹‘‘’”‡•—’–‹˜‡
„ƒ•‹•ƒ”‡‘–”‡“—‹”‡†–‘ƒ‹–ƒ‹„‘‘•‘ˆƒ……‘—–—Ȁ•ͶͶ‘”‰‡––Š‡ƒ—†‹–‡†—Ȁ•ͶͶǤ
••‡••‡‡–‘ƒ‹–ƒ‹ƒ……‘—–•ƒ†‰‡––Š‡ƒ—†‹–‡†‹ˆŠ‡…Žƒ‹•’”‘ϐ‹–•–‘„‡Ž‡••–ŠƒͷͲΨ‘ˆ–Š‡
”‘••‡…‡‹’–•Ǥ
ƒ••‡••‡‡‘’–‹‰ˆ‘”•‡…–‹‘ͶͶ‹•”‡“—‹”‡†–‘’ƒ›ƒ†˜ƒ…‡–ƒš„›ͳͷ–Šƒ”…Šǡ‡˜‡”› Ǥ
 ʹʹͺ Lesson 4 Ȉ EP-TL

 

ǡ



ȏͶͶȐ
Š‹••‡…–‹‘’”‘˜‹†‡•ƒ’”‡•—’–‹˜‡„ƒ•‹•‘ˆ–ƒšƒ–‹‘ˆ‘”‡•–‹ƒ–‹‰„—•‹‡••‹…‘‡ˆ”‘’Ž›‹‰ǡŠ‹”‹‰‘”Ž‡ƒ•‹‰
‰‘‘†•…ƒ””‹ƒ‰‡•ǡ•‘Ž‘‰ƒ•–Š‡ƒ••‡••‡‡†‘‡•‘–‘™εͳͲ˜‡Š‹…Ž‡•ƒ–ƒ›–‹‡‹–Š‡Ǥ
Š‡…—””‡–’”‡•—’–‹˜‡‹…‘‡•…Š‡‡‹•ƒ’’Ž‹…ƒ„Ž‡–‘ƒŽŽ…Žƒ••‡•‘ˆ‰‘‘†•…ƒ””‹ƒ‰‡•„‡‹‰Ž‡••–ŠƒͳͲ‹—„‡”ǡ
‹””‡•’‡…–‹˜‡‘ˆ–Š‡‹”–‘ƒ‰‡…ƒ’ƒ…‹–›Ǥ‡…‡™‹–Šƒ‡†‡–„› ‹ƒ…‡…–ǡʹͲͳͺ–Š‡’”‡•—’–‹˜‡‹…‘‡•ŠƒŽŽ
„‡ƒ•—†‡”ǣ
ȋ‹Ȍ …ƒ•‡‘ˆŠ‡ƒ˜›‰‘‘†•˜‡Š‹…Ž‡ȋ–Š‡‰”‘••˜‡Š‹…Ž‡™‡‹‰Š–‘ˆ™Š‹…Š‡š…‡‡†•ͳʹǡͲͲͲ‹Ž‘‰”ƒ•Ȍǡ–Š‡’”‡•—’–‹˜‡
‹…‘‡™‘—Ž††‡‡‡†–‘„‡ƒƒ‘—–‡“—ƒŽ–‘•ǤͳǡͲͲͲ’‡”–‘‘ˆ‰”‘••˜‡Š‹…Ž‡™‡‹‰Š–‘”—Žƒ†‡™‡‹‰Š–ǡ
ƒ•–Š‡…ƒ•‡ƒ›„‡ǡˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆƒ‘–Š†—”‹‰™Š‹…Š–Š‡Š‡ƒ˜›‰‘‘†•˜‡Š‹…Ž‡‹•‘™‡†„›–Š‡
ƒ••‡••‡‡‹–Š‡’”‡˜‹‘—•›‡ƒ”‘”ƒƒ‘—–…Žƒ‹‡†–‘Šƒ˜‡„‡‡ƒ…–—ƒŽŽ›‡ƒ”‡†ˆ”‘•—…Š˜‡Š‹…Ž‡ǡ™Š‹…Š‡˜‡”
‹•Š‹‰Š‡”Ǥ
ȋ‹‹Ȍ Š‡˜‡Š‹…Ž‡•‘–Š‡”–ŠƒŠ‡ƒ˜›‰‘‘†•˜‡Š‹…Ž‡™‹ŽŽ…‘–‹—‡–‘„‡–ƒš‡†ƒ–ƒ•’‡”–Š‡‡š‹•–‹‰”ƒ–‡•‘ˆ•Ǥ͹ǡͷͲͲ
ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆƒ‘–Š†—”‹‰™Š‹…Š–Š‡‰‘‘†•…ƒ””‹ƒ‰‡‹•‘™‡†„›–Š‡ƒ••‡••‡‡‹–Š‡’”‡˜‹‘—•
›‡ƒ”‘”ƒƒ‘—–…Žƒ‹‡†–‘Šƒ˜‡„‡‡ƒ…–—ƒŽŽ›‡ƒ”‡†ˆ”‘•—…Š‰‘‘†•…ƒ””‹ƒ‰‡ǡ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ
ƒ••‡••‡‡ƒ›…Žƒ‹Ž‘™‡”‹…‘‡–Šƒ–Š‡’”‡•—’–‹˜‡‹…‘‡ƒ••’‡…‹ϐ‹‡†—†‡”–Š‹••‡…–‹‘ǡ‹ˆŠ‡‡‡’•ƒ†
ƒ‹–ƒ‹••—…Š„‘‘•‘ˆƒ……‘—–—†‡”•‡…–‹‘ͶͶƒ†‰‡–•Š‹•ƒ……‘—–•ƒ—†‹–‡†ƒ†ˆ—”‹•Š‡•ƒ”‡’‘”–‘ˆ•—…Š
ƒ—†‹–ƒ•”‡“—‹”‡†—†‡”•‡…–‹‘ͶͶǤ
ƒ••‡••‡‡ǡ™Š‘‹•‹’‘••‡••‹‘‘ˆƒ‰‘‘†•…ƒ””‹ƒ‰‡ǡ™Š‡–Š‡”–ƒ‡‘Š‹”‡’—”…Šƒ•‡‘”‘‹•–ƒŽ‡–•ƒ†ˆ‘”
™Š‹…Š–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡ƒ‘—–’ƒ›ƒ„Ž‡‹••–‹ŽŽ†—‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‘™‡”‘ˆ•—…Š‰‘‘†•…ƒ””‹ƒ‰‡Ǥ
‘ †‡†—…–‹‘ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† –‘ –Š‡ ƒ••‡••‡‡• —†‡” •‡…–‹‘• ͵Ͳ –‘ ͵ͺ ƒ† –Š‡ •ƒŽƒ”› ƒ† ‹–‡”‡•– ’ƒ‹† –‘ –Š‡
’ƒ”–‡”••ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ˆ‘”†‡†—…–‹‘•—„Œ‡…––‘–Š‡…‘†‹–‹‘•ƒ†Ž‹‹–••’‡…‹ϐ‹‡†‹•‡…–‹‘ͶͲȋ„ȌǤ
Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆƒ›ƒ••‡–‘ˆƒ‡Ž‹‰‹„Ž‡„—•‹‡•••ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡…ƒŽ…—Žƒ–‡†ƒ•‹ˆ–Š‡‡Ž‹‰‹„Ž‡
ƒ••‡••‡‡•Šƒ†…Žƒ‹‡†ƒ†Šƒ†„‡‡ƒ…–—ƒŽŽ›ƒŽŽ‘™‡†–Š‡†‡†—…–‹‘‹”‡•’‡…–‘ˆ–Š‡†‡’”‡…‹ƒ–‹‘ˆ‘”‡ƒ…Š‘ˆ–Š‡
”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”•Ǥ
Š‡‹–‡–‘ˆ–Š‹••‡…–‹‘‹•–‘”‡†—…‡ƒ†‹‹•–”ƒ–‹˜‡ƒ†…‘’Ž‹ƒ…‡„—”†‡‘•ƒŽŽ„—•‹‡••‡•ǡƒ†”‡Ž‹‡˜‡–Š‡
ˆ”‘–Š‡”‡“—‹”‡‡–‘ˆƒ‹–‡ƒ…‡‘ˆ„‘‘•‘ˆƒ……‘—–•ǤŠ‡”‡ˆ‘”‡ǡ’‡‘’Ž‡‘’–‹‰ˆ‘”–ƒšƒ–‹‘‘’”‡•—’–‹˜‡
„ƒ•‹•ƒ”‡‘–”‡“—‹”‡†–‘ƒ‹–ƒ‹„‘‘•‘ˆƒ……‘—–—Ȁ•ͶͶ‘”‰‡––Š‡ƒ—†‹–‡†—Ȁ•ͶͶǤ



ͳ

MsǤ”‹›ƒ ‹•‡‰ƒ‰‡† ‹–Š‡„—•‹‡••‘ˆ‰‡‡”ƒ–‹‘ ƒ††‹•–”‹„—–‹‘‘ˆ’‘™‡”ƒ†‘’–•–Š‡‡–Š‘†ˆ‘”

…Žƒ‹‹‰ ‡’”‡…‹ƒ–‹‘Ǥ Š‡ Šƒ• ƒ ‘’‡‹‰ „Ž‘… ‘ˆ  ͷͲǡͲͲǡͲͲͲǤ Š‡ ƒ…“—‹”‡† ‡™ ƒ…Š‹‡”› ˆ‘” 
ʹͷǡͲͲǡͲͲͲ‘ͳͷ–Š‘˜ʹͲʹͳǤŠ‡ƒŽ•‘‹’‘”–‡†ƒ‡™ƒ…Š‹‡”›ˆ”‘—”‹…Šˆ‘”ͳͲǡͲͲǡͲͲͲ‘ͳͶ–Š’”
ʹͲʹͳǤŠ‹•ƒ…Š‹‡™ƒ•—•‡†–Š‡”‡‡ƒ”Ž‹‡”ƒ†•Š‡‹•–Š‡ϐ‹”•–—•‡”‹†‹ƒǤ††‹–‹‘ƒŽŽ›ǡ•Š‡„‘—‰Š–…‘’—–‡”•
ˆ‘”ͷͲͲǡͲͲͲ‘ͻ–Š‡’ʹͲʹͳǤ
‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡ƒŽŽ‘™ƒ„Ž‡†‡’”‡…‹ƒ–‹‘—†‡”…‘‡ƒš…–ǡͳͻ͸ͳˆ‘”ʹͲʹʹǦʹ͵Ǥ
Answer

–‡• ƒ–‡  ƒ–‡‰‘”› ƒ–‡ ‡’”‡…‹ƒ–‹‘

’‡‹‰ ͳ•–’”ʹͲʹͳ ͷͲǡͲͲǡͲͲͲ —ŽŽ ͳͷΨ ͹ǡͷͲǡͲͲͲ

‡™ƒ…Š‹‡”› ͳͷ–Š‘˜ʹͲʹͳ ʹͷǡͲͲǡͲͲͲ ƒŽˆ ͳͷΨ ͳǡͺ͹ǡͷͲͲ

Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹʹͻ

’‘”–‡†ƒ…Š‹‡”› ͳͶ–Š’”ʹͲʹͳ ͳͲǡͲͲǡͲͲͲ —ŽŽ ͳͷΨ ͳǡͷͲǡͲͲͲ

‘’—–‡”• ͻ–Š‡’ʹͲʹͳ ͷǡͲͲǡͲͲͲ —ŽŽ ͶͲΨ ʹǡͲͲǡͲͲͲ
‘–ƒŽ‡’”‡…‹ƒ–‹‘ ͳʹǡͺ͹ǡͷͲͲ
††Ž‡’”‡…‹ƒ–‹‘
‡™ƒ…Š‹‡”› ʹͷǡͲͲǡͲͲͲ ƒŽˆ ʹͲΨ ʹǡͷͲǡͲͲͲ
‘’—–‡”• ͷǡͲͲǡͲͲͲ —ŽŽ ʹͲΨ ͳǡͲͲǡͲͲͲ
††‹–‹‘ƒŽ‡’”‡…‹ƒ–‹‘ ͵ǡͷͲǡͲͲͲ
—ƒŽ‡’”‡…‹ƒ–‹‘ ͳ͸ǡ͵͹ǡͷͲͲ

NoteǣŠ‡ƒ…Š‹‡”›–Šƒ–™ƒ•‹’‘”–‡†™ƒ•ϐ‹”•–—•‡†–Š‡”‡‹ƒ–—”‹…Šǡ‡ƒ”Ž‹‡”„‡ˆ‘”‡„‡‹‰‹’‘”–‡†‹–‘
†‹ƒƒ†Š‡…‡‘†‡’”‡…‹ƒ–‹‘™‹ŽŽ„‡ƒŽŽ‘™ƒ„Ž‡‘–Š‡•ƒ‡Ǥ

ʹ

šƒ‹‡™Š‡–Š‡”–Š‡ˆ‘ŽŽ‘™‹‰‡š’‡•‡•‹…—””‡†„›•Ǥ”‹›ƒƒǡƒ†‡ƒŽ‡”‹‡…—”‹–‹‡•ǡ™‹ŽŽ„‡ƒŽŽ‘™ƒ„Ž‡ǫ
ȋƒȌ š’‡•‡•‘…–‹˜‹–‹‡•͹ͷͲǡͲͲͲ
ȋ„Ȍ ‡––‹‰—’ƒ…‘Ž†…Šƒ‹ˆƒ…‹Ž‹–›ˆ‘”•’‡…‹ϐ‹‡†’”‘†—…–•ǡͳͲǡͲͲǡͲͲͲ
ȋ…Ȍ –‡”‡•–‘Ž‘ƒ’ƒ‹†–‘”ǤŠ›ƒǡͳͲͲǡͲͲͲ‘™Š‹…Š‘™ƒ•ƒˆˆ‡…–‡†Ǥ‡”•ƒŽ‡•ˆ‘”–Š‡™ƒ•
ͷ”‘”‡•
ȋ†Ȍ ‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒš’ƒ‹†ͷͲǡͲͲͲ
Answer:
ȋƒȌ š’‡•‡•‘  ƒ…–‹˜‹–‹‡•ƒ”‡‘– ƒŽŽ‘™ƒ„Ž‡ ƒ• ƒ †‡†—…–‹‘ —Ȁ•͵͹ƒ† Š‡…‡–Š‡‡–‹”‡͹ͷͲǡͲͲͲ
™‘—Ž†„‡†‹•ƒŽŽ‘™‡†
ȋ„Ȍ Š‹•‹•ƒ•’‡…‹ϐ‹‡†„—•‹‡••ˆ‘”™Š‹…Š•Š‡…ƒ…Žƒ‹ͳͲͲΨ†‡†—…–‹‘—Ȁ•͵ͷǡŠ‡…‡‡–‹”‡ͳͲǡͲͲǡͲͲͲ
™‹ŽŽ„‡ƒŽŽ‘™ƒ„Ž‡
ȋ…Ȍ Š‡–—”‘˜‡”‘ˆ•Ǥ”‹›ƒƒ‡š…‡‡†•–Š‡–Š”‡•Š‘Ž†‘ˆͳͲͲǡͲͲǡͲͲͲƒ†Š‡…‡•Š‡™ƒ•”‡“—‹”‡†–‘
†‡†—…––ƒšƒ–•‘—”…‡Ǥ‹…‡•Š‡†‹†ǯ–ǡ͵ͲΨ‘ˆ–Š‡‹–‡”‡•–ǡ‹Ǥ‡Ǥǡ͵ͲΨ‘ˆͳͲͲǡͲͲͲǡ–Šƒ–‹•͵ͲǡͲͲͲ
™‘—Ž†„‡†‹•ƒŽŽ‘™‡†—Ȁ•ͶͲȋƒȌȋ‹ƒȌƒ†–Š‡„ƒŽƒ…‡͹ͲǡͲͲͲ™‘—Ž†„‡ƒŽŽ‘™ƒ„Ž‡ˆ‘”–Š‡ƒ••‡••‡‡—Ȁ•
͵͸ȋͳȌȋ‹‹‹Ȍ
ȋ†Ȍ ‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒš‘ˆͷͲǡͲͲͲ™‘—Ž†„‡ƒƒŽŽ‘™ƒ„Ž‡‡š’‡•‡ǡƒ••—‹‰–Šƒ–‹…‘‡ˆ”‘•—…Š
•‘—”…‡ǡŠƒ•„‡‡‹…Ž—†‡†—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dzǤ

͵

”Ǥ—†ƒƒŽǡƒ–”ƒ†‡”ƒ–‘Žƒ–ƒǡ•—„‹–•–Š‡Ƭƒ•—†‡”ǡˆ‘” ʹͲʹͳǦʹʹǣ

”‘ϐ‹–Ƭ‘••……‘—–ˆ‘”‡ƒ”†‡†͵ͳ•–ƒ”…ŠǡʹͲʹʹ
ƒ”–‹…—Žƒ”•  ƒ”–‹…—Žƒ”• 
‘’‡‹‰–‘… ͳǡͲͲǡͲͲͲ ›ƒŽ‡• ͳǡʹͷǡͲͲǡͲͲͲ
‘—”…Šƒ•‡• ͳǡʹͲǡͲͲǡͲͲͲ ›Ž‘•‹‰–‘… ʹǡͲͲǡͲͲͲ
‘
”‘••”‘ϐ‹– ͸ǡͲͲǡͲͲͲ
ʹ͵Ͳ Lesson 4 Ȉ EP-TL

‘–ƒŽ ͳǡʹ͹ǡͲͲǡͲͲͲ ‘–ƒŽ ͳǡʹ͹ǡͲͲǡͲͲͲ

‘‡–ǡƒ–‡•ǡƒš‡• ͳǡͲͺǡͲͲͲ ›
”‘••”‘ϐ‹– ͸ǡͲͲǡͲͲͲ
‘ƒŽƒ”‹‡• ͳǡʹͷǡͲͲͲ ›–‡”‡•–…‘‡ ͷǡͲͲͲ
‘–‡”‡•–‘Ž‘ƒ ʹͷǡͲͲͲ
‘‡’”‡…‹ƒ–‹‘ ʹǡʹͷǡͲͲͲ
‘”‹–‹‰Ƭ–ƒ–‹‘‡”› ʹͷǡͲͲͲ
‘‘•–ƒ‰‡Ƭ‡Ž‡‰”ƒ ͳǡ͹ͷͲ

‘‘•• ‘ ƒŽ‡ ‘ˆ Šƒ”‡•

ͳʹǡͳͻͲ
ȋŠ‘”–‡”Ȍ

‘
‡‡”ƒŽš’‡•‡• ͳ͹ǡͲ͸Ͳ
‘‡–”‘ϐ‹– ͸͸ǡͲͲͲ
‘–ƒŽ ͸ǡͲͷǡͲͲͲ ‘–ƒŽ ͸ǡͲͷǡͲͲͲ

††‹–‹‘ƒŽˆ‘”ƒ–‹‘ǣ
ƒȌ Ž‘•‹‰–‘…Ƭ’‡‹‰–‘…™ƒ•—†‡”Ǧ˜ƒŽ—‡†„›ͳͲΨ
„Ȍ ƒŽƒ”›‹…Ž—†‡•ʹͲǡͲͲͲ’ƒ‹†–‘ƒ”‡Žƒ–‹˜‡™Š‹…Š™ƒ•…‘•‹†‡”‡†—”‡ƒ•‘ƒ„Ž‡
…Ȍ Š‡™Š‘Ž‡ƒ‘—–‘ˆ”‹–‹‰Ƭ–ƒ–‹‘‡”›™ƒ•’ƒ‹†‹ƒ•Šƒ–‘‡‰‘
†Ȍ ‘ˆ–Š‡Žƒ–Ƭƒ…Š‹‡”›‘ͳ•–’”‹ŽǡʹͲʹͳ™ƒ•ͳʹǡͲͲǡͲͲͲǤ††‹–‹‘•‘ˆͷǡͲͲǡͲͲͲ™‡”‡
ƒ†‡‘ͳ•– —‡ʹͲʹͳƒ†‘ͳ•–…–ʹͲʹͳǡƒ…Š‹‡”›™ƒ••‘Ž†ˆ‘”ͳʹǡͷ͹ǡͻͻ͵
‡Ȍ ‡–Ƭƒ–‡•‹…Ž—†‡†‘—–•–ƒ†‹‰
‹ƒ„‹Ž‹–›ˆ‘”ƒ”ǯʹͳǡ‘ˆʹ͹ǡͲͲͲǡ†—Ž›’ƒ‹†™‹–Š‹͹–Š’”‹ŽʹͲʹʹ
ˆȌ †‘ƒ–‹‘‘ˆͳʹǡͲͲͲ™ƒ•ƒ†‡–‘ƒ’—„Ž‹……Šƒ”‹–ƒ„Ž‡–”—•–†—”‹‰–Š‡›‡ƒ”
‘—ƒ”‡”‡“—‹”‡†–‘ǣ
ƒȌ ƒŽ…—Žƒ–‡–Š‡”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••”‘ˆ‡••‹‘
„Ȍ †˜‹•‡™Š‡–Š‡”Š‡•Š‘—Ž†‘’–ˆ‘”–Š‡”‡•—’–‹˜‡•…Š‡‡—Ȁ•ͶͶ
‘—…ƒƒ••—‡–Šƒ––Š‡‡–‹”‡ƒ‘—–‘ˆ–—”‘˜‡”™ƒ•”‡…‡‹˜‡†„›ƒ……‘—–’ƒ›‡‡…Š‡“—‡Ǥ

Answer:

ƒ”–‹…—Žƒ”• 
‡–”‘ϐ‹– ͸͸ǡͲͲͲ
††ǣ Ž‘•‹‰–‘… ʹǡʹʹǡʹʹʹ
ƒŽƒ”›ȋ‡Žƒ–‹˜‡Ȍ ʹͲǡͲͲͲ
”‹–‹‰Ƭ–ƒ–‹‘‡”›ȋƒ•ŠεʹͲͲͲͲȌ ʹͷǡͲͲͲ
‡’”‡…‹ƒ–‹‘ ʹǡʹͷǡͲͲͲ
‘ƒ–‹‘ ͳʹǡͲͲͲ
‘••‘ƒŽ‡‘ˆŠƒ”‡• ͳʹǡͳͻͲ
ͷǡͺʹǡͶͳʹ
Less: ’‡‹‰–‘… ͳǡͳͳǡͳͳͳ
Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹ͵ͳ

ŽŽ‘™ƒ„Ž‡‡’”‡…‹ƒ–‹‘ ͸͸ǡ͵Ͳͳ
–‡”‡•–…‘‡ ͷǡͲͲͲ
”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ͶǡͲͲǡͲͲͲ
†‡””‡•—’–‹˜‡ƒšƒ–‹‘ ͹ǡͷͲǡͲͲͲ

‹…‡–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘’”‡•—’–‹˜‡„ƒ•‹•ǡ‹Ǥ‡Ǥǡ͸Ψ‘ˆ
”‘••‡…‡‹’–•ȋͳʹͷǡͲͲǡͲͲͲȗ͸ΨȌα͹ͷͲǡͲͲͲ‹•Š‹‰Š‡”
–Šƒ–Š‡…‘’—–‡†”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••”‘ˆ‡••‹‘ǡŠ‡•Š‘—Ž†ǯ–ƒ†‘’–ˆ‘”’”‡•—’–‹˜‡„ƒ•‹•Ǥ‘™‡˜‡”ǡ
•‹…‡Š‹•–—”‘˜‡”‹•εͳ”‘”‡ǡƒ—†‹–—Ȁ•ͶͶ™‘—Ž†„‡ƒ†ƒ–‘”›ǡ‹ˆŠ‡†‘‡•ǯ–ƒ†‘’–’”‡•—’–‹˜‡„ƒ•‹•Ǥ
Notes:
ƒȌ †‡”Ǧ˜ƒŽ—‡†…Ž‘•‹‰•–‘…ƒ††‡†–‘”‘ϐ‹–•ȋͳͲͲȀͻͲȗʹͲͲǡͲͲͲȌ
„Ȍ †‡”Ǧ˜ƒŽ—‡†‘’‡‹‰•–‘…”‡†—…‡†ȋͳͲͲȀͻͲȗͳͲͲǡͲͲͲȌ
…Ȍ ƒŽƒ”›–‘”‡Žƒ–‹˜‡ǡ–‘–Š‡‡š–‡–…‘•‹†‡”‡†”‡ƒ•‘ƒ„Ž‡ǡƒ††‡†„ƒ…
†Ȍ ‹…‡–Š‡…ƒ•Š’ƒ›‡–™ƒ•εͳͲǡͲͲͲǡ‡–‹”‡ƒ‘—–†‹•ƒŽŽ‘™‡†—Ȁ•ͶͲȋ͵Ȍ
‡Ȍ ‡’”‡…‹ƒ–‹‘ƒ††‡†„ƒ…ƒ†ƒŽŽ‘™‡†ƒ•—†‡”ǣ

ƒ”–‹…—Žƒ”• 
’‡‹‰ ͳʹǡͲͲǡͲͲͲ
††‹–‹‘• ͷǡͲͲǡͲͲͲ
‹•’‘•ƒŽ• ͳʹǡͷ͹ǡͻͻ͵
Ž‘•‹‰ ͶǡͶʹǡͲͲ͹
‡’”‡…‹ƒ–‹‘̷ͳͷΨ ͸͸ǡ͵Ͳͳ
ˆȌ ‹…‡–Š‡—’ƒ‹†
‹ƒ„‹Ž‹–›™ƒ•’ƒ‹†„‡ˆ‘”‡–Š‡†—‡†ƒ–‡ƒ†„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰”‡–—”‘ˆ‹…‘‡
—Ȁ•ͳ͵ͻȋͳȌǡ‹–‹•ƒŽŽ‘™ƒ„Ž‡

Ͷ

‡–’”‘ϐ‹–ƒ•’‡”’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‘ˆ‹••Ǥ͸ǡͺ͸ǡͲͲͲˆ‘”–Š‡›‡ƒ”‡†‹‰͵ͳ•–ƒ”…ŠǡʹͲʹʹǤŠ‡ˆ‘ŽŽ‘™‹‰
‹ˆ‘”ƒ–‹‘‹•‘–‡†ˆ”‘Š‹•ƒ……‘—–•ǣ
ȋƒȌ †˜‡”–‹•‡‡–‡š’‡†‹–—”‡†‡„‹–‡†–‘’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‹…Ž—†‡–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ȋ‹Ȍ š’‡†‹–—”‡‹…—””‡†‘—–•‹†‡†‹ƒǣ•ǤͶ͸ǡͲͲͲȋ’‡”‹––‡†„›ȌǢ
ȋ‹‹Ȍ ”–‹…Ž‡•’”‡•‡–‡†„›™ƒ›‘ˆƒ†˜‡”–‹•‡‡–ȋ͸Ͳƒ”–‹…Ž‡•…‘•–‘ˆ‡ƒ…Š„‡‹‰•ǤͻͲͲǢƒ†͵͸ƒ”–‹…Ž‡•
…‘•–‘ˆ‡ƒ…Š„‡‹‰•Ǥͳǡ͹ͲͲȌǢ
ȋ‹‹‹Ȍ •ͳ͸ǡͲͲͲ„‡‹‰…‘•–‘ˆƒ†˜‡”–‹•‡‡–™Š‹…Šƒ’’‡ƒ”‡†‹ƒ‡™•’ƒ’‡”‘™‡†„›ƒ’‘Ž‹–‹…ƒŽ’ƒ”–›Ǣ
ȋ‹˜Ȍ •ǤͳͳǡͶͲͲ„‡‹‰…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘ƒ†˜‡”–‹•‡‡–Ǣ
ȋ˜Ȍ •ǤͳʹǡͲͲͲ’ƒ‹†‹…ƒ•ŠǢƒ†
ȋ˜‹Ȍ •Ǥ͹ǡͲͲͲ’ƒ‹†–‘ƒ…‘…‡”‹™Š‹…ŠŠƒ••—„•–ƒ–‹ƒŽ‹–‡”‡•–ȋƒ‘—–‹•‡š…‡••‹˜‡–‘–Š‡‡š–‡–‘ˆ
•ǤͳǡͶͲͲȌǤ
ȋ„Ȍ —–‘ˆ•ƒŽƒ”›–‘‡’Ž‘›‡‡•‘ˆ•Ǥͺǡ͹ͲǡͲͲͲ†‡„‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ǣ
ȋ‹Ȍ •ǤͶͲǡͲͲͲ‹•‡’Ž‘›‡‡•ǯ…‘–”‹„—–‹‘–‘”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†ǡ•Ǥ͵͹ǡͷͲͲ‘ˆ™Š‹…Š‹•…”‡†‹–‡†
‹–Š‡‡’Ž‘›‡‡•ǯƒ……‘—–‹–Š‡”‡Ž‡˜ƒ–ˆ—†„‡ˆ‘”‡–Š‡Ǯ†—‡†ƒ–‡ǯǢ
ȋ‹‹Ȍ •ǤͶ͸ǡͲͲͲ‹•„‘—•™Š‹…Š‹•’ƒ‹†‘ͳ͵–Š‘˜‡„‡”ǡʹͲʹʹǢ
ʹ͵ʹ Lesson 4 Ȉ EP-TL

ȋ‹‹‹Ȍ •Ǥ͵͸ǡͲͲͲ‹•…‘‹••‹‘™Š‹…Š‹•’ƒ‹†‘ͳ•–‡…‡„‡”ǡʹͲʹʹǢ
ȋ‹˜Ȍ •ǤʹͲǡͲͲͲ‹•‹…‡–‹˜‡–‘™‘”‡”•™Š‹…Š‹•’ƒ‹†‘ͳͲ–Š‡…‡„‡”ǡʹͲʹʹǢ
ȋ˜Ȍ •ǤͶͲǡͲͲͲ‹•’ƒ‹†‘—–•‹†‡†‹ƒ‹”‡•’‡…–‘ˆ™Š‹…Š–ƒš‹•‘–†‡†—…–‡†ƒ–•‘—”…‡Ǣ
ȋ˜‹Ȍ •Ǥ͸ǡͲͲͲ„‡‹‰…ƒ’‹–ƒŽ‡š’‡†‹–—”‡ˆ‘”’”‘‘–‹‰ˆƒ‹Ž›’Žƒ‹‰ƒ‘‰•–‡’Ž‘›‡‡•Ǣƒ†
ȋ˜‹‹Ȍ •ǤͶͲǡͲͲͲ„‡‹‰‡–‡”–ƒ‹‡–ƒŽŽ‘™ƒ…‡‰‹˜‡–‘‡’Ž‘›‡‡•Ǥ
ȋ˜‹‹‹Ȍ –‡”–ƒ‹‡– ‡š’‡†‹–—”‡ †‡„‹–‡† –‘ ’”‘ϐ‹– ƒ† Ž‘•• ƒ……‘—– ‹• •Ǥ ͻǡͲͲͲǤ ‡–‡”‹‡ –Š‡ ‡–
‹…‘‡‘ˆˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
•™‡”ǣ
ƒŽ…—Žƒ–‹‘‘ˆ‡–…‘‡‘ˆˆ‘”••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

‡–”‘ϐ‹–ƒ•’‡””‘ϐ‹–ƒ†‘••……‘—– ͸ǡͺ͸ǡͲͲͲ
††ǣƒ†‹••‹„Ž‡‹–‡•ǣ
ƒ•Š’ƒ‹†ˆ‘”ƒ†˜‡”–‹•‡‡–‡š’‡•‡•ȋ‘–‡͵Ȍ ͳʹͲͲͲ
‘•–‘ˆƒ†˜‡”–‹•‡‡–™Š‹…Šƒ’’‡ƒ”‡†‹ƒ‡™•’ƒ’‡”‘™‡†„›ƒ’‘Ž‹–‹…ƒŽ’ƒ”–› ͳ͸ͲͲͲ
š…‡••‹˜‡ƒ‘—–’ƒ‹†–‘ƒ…‘…‡”‹™Š‹…ŠŠƒ••—„•–ƒ–‹ƒŽ‹–‡”‡•– ͳͶͲͲ
’Ž‘›‡‡…‘–”‹„—–‹‘–‘”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†ȋ–‘–Š‡‡š–‡–‘–…”‡†‹–‡†‹–Š‡
ʹͷͲͲ
‡’Ž‘›‡‡•ǯƒ……‘—–‹–Š‡”‡Ž‡˜ƒ–ˆ—†„‡ˆ‘”‡–Š‡Ǯ†—‡†ƒ–‡ǯȌ
‘—•„‡‹‰’ƒ‹†–‘‡’Ž‘›‡‡•ƒˆ–‡”–Š‡Ǯ†—‡†ƒ–‡ǯ‘ˆϐ‹Ž‹‰–Š‡”‡–—” Ͷ͸ͲͲͲ
‘‹••‹‘„‡‹‰’ƒ‹†–‘‡’Ž‘›‡‡•ƒˆ–‡”–Š‡Ǯ†—‡†ƒ–‡ǯ‘ˆϐ‹Ž‹‰–Š‡”‡–—” ͵͸ͲͲͲ
ƒŽƒ”›’ƒ‹†‘—–•‹†‡†‹ƒ‹”‡•’‡…–‘ˆ™Š‹…Š–ƒš‹•‘–†‡†—…–‡†ƒ–•‘—”…‡ ͶͲͲͲͲ

ƒ’‹–ƒŽ‡š’‡†‹–—”‡ˆ‘”’”‘‘–‹‰ˆƒ‹Ž›’Žƒ‹‰ƒ‘‰•–‡’Ž‘›‡‡•ȋƒŽŽ‘™‡†‘Ž›–‘ƒ
͸ͲͲͲ
…‘”’‘”ƒ–‡ƒ••‡••‡‡Ȍ

ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘†˜‡”–‹•‡‡–• ͳͳͶͲͲ
‡–…‘‡ ͺǡͷ͹ǡ͵ͲͲ

‘–‡•ǣ
ͳǤ ‡•–”‹…–‹‘•‘ƒ†˜‡”–‹•‡‡–ƒ†‡–‡”–ƒ‹‡–ƒ„‘Ž‹•Š‡†Ǥ
ʹǤ ‹–Š–Š‡ƒ„‘Ž‹–‹‘‘ˆ‡…–‹‘͵͹ȋ͵Ȍǡ™Š‹…Š‹–‡”ƒŽ‹ƒ‰‘˜‡”‡†–Š‡†‡†—…–‹„‹Ž‹–›‘ˆƒ†˜‡”–‹•‹‰‡š’‡•‡•ǡ
ƒ†˜‡”–‹•‹‰–‘‘Šƒ•…‘‡™‹–Š‹–Š‡ˆ‘Ž†‘ˆ–Š‡‘‹„—•‡…–‹‘͵͹ȋͳȌ™Š‹…Š•’‡…‹ϐ‹…ƒŽŽ›ˆ”‘™•‘…ƒ’‹–ƒŽ
‡š’‡†‹–—”‡ǤŠ‡‹ƒ…ŠƒŽ”ƒ†‡•Š‹‰Š‘—”–˜‡”†‹…–‹‘Šƒ‡ƒ‹”‡™‡”‹‡•–†Ǥ˜Ǥȋͳͻ͹ͻȌͳͳͺ
ͳͲͳƒŽŽ‘™‹‰…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘ƒ†˜‡”–‹•‹‰–Š‡”‡ˆ‘”‡Šƒ•…‡ƒ•‡†–‘Šƒ˜‡–Š‡ˆ‘”…‡‘ˆŽƒ™ƒ•‹–™ƒ•
”‡†‡”‡†‹–Š‡…‘–‡š–‘ˆ‡…–‹‘͵͹ȋ͵ȌǤ
͵Ǥ †˜‡”–‹•‡‡– ‡š’‡•‡• ‘ˆ •Ǥ ͳʹǡͲͲͲ ȋ‹Ǥ‡Ǥǡ ‡š…‡‡†‹‰ –Š‡ Ž‹‹– ‘ˆ •Ǥ ͳͲǡͲͲͲȌ ‹• ’ƒ‹† ‹ …ƒ•Šǡ Š‡…‡
†‹•ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͶͲȋ͵ȌǤ
ͶǤ Š‡Ǯ†—‡†ƒ–‡ǯˆ‘”ϐ‹Ž‹‰”‡–—”™Š‡”‡–Š‡ƒ••‡••‡‡‹•ƒ’‡”•‘ȋ‘–Š‡”–Šƒƒ…‘’ƒ›Ȍ™Š‘‹•”‡“—‹”‡†–‘
‰‡– Š‹• ƒ……‘—–• ƒ—†‹–‡† —†‡” –Š‡ …‘‡Ǧ–ƒš …– ‘” ƒ› ‘–Š‡” Žƒ™ ‹• ‡’–‡„‡” ͵ͲǢ ƒ† ™Š‡”‡ –Š‡
ƒ••‡••‡‡‹•ƒ’‡”•‘†‡”‹˜‹‰‹…‘‡ˆ”‘„—•‹‡••ƒ†™Š‘‹•‘–”‡“—‹”‡†–‘‰‡–Š‹•ƒ……‘—–•ƒ—†‹–‡†ǡ
–Š‡Ǯ†—‡†ƒ–‡ǯ‹• —Ž›ǡ͵ͳǤ†‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘Ͷ͵‘ˆ–Š‡…–Ǧ‘—••ǤͶ͸ǡͲͲͲ’ƒ‹†‘ͳ͵–Š
‘˜ǤǡʹͲʹʹƒ†‘‹••‹‘•Ǥ͵͸ǡͲͲͲ’ƒ‹†‘ͳ•–‡…ǤǡʹͲʹʹƒ”‡‘–ƒ†‹••‹„Ž‡•‹…‡–Š‡’ƒ›‡–•ƒ”‡
ƒ†‡ƒˆ–‡”–Š‡ƒ„‘˜‡‡–‹‘‡†Ǯ†—‡†ƒ–‡ǯǤ
ͷǤ …‡–‹˜‡–‘™‘”‡”•™Š‹…Š‹•’ƒ‹†‘ͳͲ–Š‡…‡„‡”ǡʹͲʹʹ‹•ƒ†‹••‹„Ž‡‘Ǯ†—‡„ƒ•‹•ǯ
Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹ͵͵


ƒ–‡•ƒ–™Š‹…Š‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™ƒ„Ž‡ˆ”‘••‡••‡–‡ƒ”ʹͲͲ͸ǦʹͲͲ͹™ƒ”†•

ȏSee rule 5Ȑ
ƒ„Ž‡‘ˆƒ–‡•ƒ–™Š‹…Š‡’”‡…‹ƒ–‹‘‹•†‹••‹„Ž‡

‡’”‡…‹ƒ–‹‘
ƒŽŽ‘™ƒ…‡ƒ•
Ž‘…‘ˆƒ••‡–• ’‡”…‡–ƒ‰‡‘ˆ
™”‹––‡†‘™
˜ƒŽ—‡
1 ʹ





Ǥ
ȏ‡‡‘–‡•ͳ–‘Ͷ„‡Ž‘™–Š‡ƒ„Ž‡Ȑ

ȋͳȌ—‹Ž†‹‰•™Š‹…Šƒ”‡—•‡†ƒ‹Ž›ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•‡š…‡’–Š‘–‡Ž•ƒ†„‘ƒ”†‹‰
ͷ
Š‘—•‡•

ȋʹȌ—‹Ž†‹‰•‘–Š‡”–Šƒ–Š‘•‡—•‡†ƒ‹Ž›ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•ƒ†‘–…‘˜‡”‡†„›•—„Ǧ
ͳͲ
‹–‡•ȋͳȌƒ„‘˜‡ƒ†ȋ͵Ȍ„‡Ž‘™

—‹Ž†‹‰•ƒ…“—‹”‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ‡’–‡„‡”ǡʹͲͲʹˆ‘”‹•–ƒŽŽ‹‰ƒ…Š‹‡”›ƒ†
’Žƒ–ˆ‘”‹‰’ƒ”–‘ˆ™ƒ–‡”•—’’Ž›’”‘Œ‡…–‘”™ƒ–‡”–”‡ƒ–‡–•›•–‡ƒ†™Š‹…Š‹•’—––‘
ͶͲ
—•‡ˆ‘”–Š‡’—”’‘•‡‘ˆ„—•‹‡••‘ˆ’”‘˜‹†‹‰‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–‹‡•—†‡”…Žƒ—•‡‘ˆ•—„Ǧ
•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ͺͲǦ

ȋͶȌ—”‡Ž›–‡’‘”ƒ”›‡”‡…–‹‘••—…Šƒ•™‘‘†‡•–”—…–—”‡• ͶͲ

Ǥ  


—”‹–—”‡ƒ†ϐ‹––‹‰•‹…Ž—†‹‰‡Ž‡…–”‹…ƒŽϐ‹––‹‰•ȏ‡‡‘–‡ͷ„‡Ž‘™–Š‡ƒ„Ž‡Ȑ ͳͲ

Ǥ

ȋͳȌƒ…Š‹‡”›ƒ†’Žƒ–‘–Š‡”–Šƒ–Š‘•‡…‘˜‡”‡†„›•—„Ǧ‹–‡•ȋʹȌǡȋ͵Ȍƒ†ȋͺȌ„‡Ž‘™ ͳͷ

‘–‘”…ƒ”•ǡ‘–Š‡”–Šƒ–Š‘•‡—•‡†‹ƒ„—•‹‡••‘ˆ”—‹‰–Š‡‘Š‹”‡ǡƒ…“—‹”‡†‘”’—––‘
ͳͷ
—•‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡͳͻͻͲ

ȋ͵Ȍȋ‹Ȍ‡”‘’Žƒ‡•Ȃ‡”‘‡‰‹‡• ͶͲ

ȋ‹‹Ȍ‘–‘”„—•‡•ǡ‘–‘”Ž‘””‹‡•ƒ†‘–‘”–ƒš‹•—•‡†‹ƒ„—•‹‡••‘ˆ”—‹‰–Š‡‘Š‹”‡ ͵Ͳ

ȋ‹‹‹Ȍ ‘‡”…‹ƒŽ ˜‡Š‹…Ž‡ ™Š‹…Š ‹• ƒ…“—‹”‡† „› –Š‡ ƒ••‡••‡‡ ‘ ‘” ƒˆ–‡” –Š‡ ͳ•– †ƒ› ‘ˆ
…–‘„‡”ǡͳͻͻͺǡ„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻͻƒ†‹•’—––‘—•‡ˆ‘”ƒ›’‡”‹‘†„‡ˆ‘”‡–Š‡
ͶͲ
ͳ•–†ƒ›‘ˆ’”‹Žǡ ͳͻͻͻ ˆ‘”–Š‡ ’—”’‘•‡•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ ‹ƒ……‘”†ƒ…‡ ™‹–Š –Š‡
–Š‹”†’”‘˜‹•‘–‘…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵ʹȏ•‡‡‘–‡͸„‡Ž‘™–Š‡ƒ„Ž‡Ȑ
 ʹ͵Ͷ Lesson 4 Ȉ EP-TL

ȋ‹˜Ȍ‡™…‘‡”…‹ƒŽ˜‡Š‹…Ž‡™Š‹…Š‹•ƒ…“—‹”‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡͳͻͻͺǡ„—–
„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻͻ‹”‡’Žƒ…‡‡–‘ˆ…‘†‡‡†˜‡Š‹…Ž‡‘ˆ‘˜‡”ͳͷ›‡ƒ”•‘ˆ
ƒ‰‡ƒ†‹•’—––‘—•‡ˆ‘”ƒ›’‡”‹‘†„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻͻˆ‘”–Š‡’—”’‘•‡•‘ˆ ͶͲ
„—•‹‡••‘”’”‘ˆ‡••‹‘‹ƒ……‘”†ƒ…‡™‹–Š–Š‡–Š‹”†’”‘˜‹•‘–‘…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ
‘ˆ•‡…–‹‘͵ʹȏ•‡‡‘–‡͸„‡Ž‘™–Š‡ƒ„Ž‡Ȑ

ȋ˜Ȍ‡™ …‘‡”…‹ƒŽ ˜‡Š‹…Ž‡ ™Š‹…Š‹•ƒ…“—‹”‡†‘ ‘”ƒˆ–‡” –Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡ ͳͻͻͻ „—–

„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͲ‹”‡’Žƒ…‡‡–‘ˆ…‘†‡‡†˜‡Š‹…Ž‡‘ˆ‘˜‡”ͳͷ›‡ƒ”•‘ˆ
ƒ‰‡ ƒ† ‹• ’—– –‘ —•‡ „‡ˆ‘”‡ –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲͲͲ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ „—•‹‡•• ‘” ͶͲ
’”‘ˆ‡••‹‘‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•‡…‘†’”‘˜‹•‘–‘…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘
͵ʹȏ•‡‡‘–‡͸„‡Ž‘™–Š‡ƒ„Ž‡Ȑ

ȋ˜‹Ȍ‡™…‘‡”…‹ƒŽ˜‡Š‹…Ž‡™Š‹…Š‹•ƒ…“—‹”‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͳ„—–
„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲʹƒ†‹•’—––‘—•‡„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲʹˆ‘”–Š‡ ͶͲ
’—”’‘•‡•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ȏ•‡‡‘–‡͸„‡Ž‘™–Š‡ƒ„Ž‡Ȑ

ȋ˜‹‹Ȍ‘—Ž†•—•‡†‹”—„„‡”ƒ†’Žƒ•–‹…‰‘‘†•ˆƒ…–‘”‹‡• ͵Ͳ

ȋ˜‹‹‹Ȍ‹”’‘ŽŽ—–‹‘…‘–”‘Ž‡“—‹’‡–ǡ„‡‹‰ ͶͲ

ȋƒȌŽ‡…–”‘•–ƒ–‹…’”‡…‹’‹–ƒ–‹‘•›•–‡•

ȋ„Ȍ ‡Ž–Ǧϐ‹Ž–‡”•›•–‡•

ȋ…Ȍ—•–…‘ŽŽ‡…–‘”•›•–‡•

ȋ†Ȍ…”—„„‡”Ǧ…‘—–‡”…—””‡–Ȁ˜‡–—”‹Ȁ’ƒ…‡†Ǧ„‡†Ȁ…›…Ž‘‹…•…”—„„‡”•

ȋ‡Ȍ•ŠŠƒ†Ž‹‰•›•–‡ƒ†‡˜ƒ…—ƒ–‹‘•›•–‡

ȋ‹šȌƒ–‡”’‘ŽŽ—–‹‘…‘–”‘Ž‡“—‹’‡–ǡ„‡‹‰Ȅ ͶͲ

ȋƒȌ‡…Šƒ‹…ƒŽ•…”‡‡•›•–‡•Ǥ

ȋ„Ȍ‡”ƒ–‡††‡–”‹–—•…Šƒ„‡”•ȋ‹…Ž—†‹‰ƒ‹”…‘’”‡••‘”Ȍ

ȋ…Ȍ‡…Šƒ‹…ƒŽŽ›•‹‡†‘‹Žƒ†‰”‡ƒ•‡”‡‘˜ƒŽ•›•–‡•

ȋ†ȌŠ‡‹…ƒŽˆ‡‡†•›•–‡•ƒ†ϐŽƒ•Š‹š‹‰‡“—‹’‡–

ȋ‡Ȍ‡…Šƒ‹…ƒŽϐŽ‘……—Žƒ–‘”•ƒ†‡…Šƒ‹…ƒŽ”‡ƒ…–‘”•

ȋˆȌ‹ˆˆ—•‡†ƒ‹”Ȁ‡…Šƒ‹…ƒŽŽ›ƒ‡”ƒ–‡†ƒ…–‹˜ƒ–‡†•Ž—†‰‡•›•–‡•

ȋ‰Ȍ‡”ƒ–‡†Žƒ‰‘‘•›•–‡•

ȋŠȌ‹‘ϐ‹Ž–‡”•

ȋ‹Ȍ‡–Šƒ‡Ǧ”‡…‘˜‡”›ƒƒ‡”‘„‹…†‹‰‡•–‡”•›•–‡•

ȋŒȌ‹”ϐŽ‘ƒ–ƒ–‹‘•›•–‡•

ȋȌ‹”Ȁ•–‡ƒ•–”‹’’‹‰•›•–‡•

ȋŽȌ”‡ƒ›†”‘Ž›•‹••›•–‡•

ȋȌƒ”‹‡‘—–ˆƒŽŽ•›•–‡•
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹ͵ͷ

ȋȌ‡–”‹ˆ—‰‡ˆ‘”†‡™ƒ–‡”‹‰•Ž—†‰‡

ȋ‘Ȍ‘–ƒ–‹‰„‹‘Ž‘‰‹…ƒŽ…‘–”ƒ…–‘”‘”„‹‘Ǧ†‹•…

ȋ’Ȍ‘‡š…Šƒ‰‡”‡•‹…‘Ž—

ȋ“Ȍ…–‹˜ƒ–‡†…ƒ”„‘…‘Ž—

ȋšȌ ȋƒȌ ‘Ž‹†™ƒ•–‡ǡ …‘–”‘Ž ‡“—‹’‡–• „‡‹‰ǡ …ƒ—•–‹…ȀŽ‹‡Ȁ…Š”‘‡Ȁ ‹‡”ƒŽȀ …”›‘Ž‹–‡

ͶͲ
”‡…‘˜‡”›•›•–‡

ȋ„Ȍ‘Ž‹†™ƒ•–‡”‡…›…Ž‹‰ƒ†”‡•‘—”…‡”‡…‘˜‡”›•›•–‡•

ȋš‹Ȍƒ…Š‹‡”›ƒ†’Žƒ–ǡ—•‡†‹•‡‹Ǧ…‘†—…–‘”‹†—•–”›…‘˜‡”‹‰ƒŽŽ‹–‡‰”ƒ–‡†…‹”…—‹–•
ȋ•Ȍȋ‡š…Ž—†‹‰Š›„”‹†‹–‡‰”ƒ–‡†…‹”…—‹–•Ȍ”ƒ‰‹‰ˆ”‘•ƒŽŽ•…ƒŽ‡‹–‡‰”ƒ–‹‘ȋȌ
–‘Žƒ”‰‡•…ƒŽ‡‹–‡‰”ƒ–‹‘Ȁ˜‡”›Žƒ”‰‡•…ƒŽ‡‹–‡‰”ƒ–‹‘ȋȀȌƒ•ƒŽ•‘†‹•…”‡–‡•‡‹Ǧ ͵Ͳ
…‘†—…–‘”†‡˜‹…‡••—…Šƒ•†‹‘†‡•ǡ–”ƒ•‹•–‘”•ǡ–Š›”‹•–‘”•ǡ–”‹ƒ…•ǡ‡–…Ǥǡ‘–Š‡”–Šƒ–Š‘•‡
…‘˜‡”‡†„›‡–”‹‡•ȋ˜‹‹‹Ȍǡȋ‹šȌƒ†ȋšȌ‘ˆ–Š‹••—„Ǧ‹–‡ƒ†•—„Ǧ‹–‡ȋͺȌ„‡Ž‘™Ǥ

ȋš‹ƒȌ‹ˆ‡•ƒ˜‹‰‡†‹…ƒŽ‡“—‹’‡–ǡ„‡‹‰ ͶͲ

ȋƒȌǤǤ‡ϐ‹„”‹ŽŽƒ–‘”•ˆ‘”‹–‡”ƒŽ—•‡ƒ†’ƒ…‡ƒ‡”•

ȋ„Ȍƒ‡‘†‹ƒŽ›•‘”•

ȋ…Ȍ‡ƒ”–—‰ƒ…Š‹‡

ȋ†Ȍ‘„ƒŽ–Š‡”ƒ’›‹–

ȋ‡Ȍ‘Ž‘—”‘’’Ž‡”

ȋˆȌ
ƒƒƒ‡”ƒ

ȋ‰Ȍƒ•…—Žƒ”‰‹‘‰”ƒ’Š››•–‡‹…Ž—†‹‰‹‰‹–ƒŽ•—„•–”ƒ…–‹‘‰‹‘‰”ƒ’Š›

ȋŠȌ‡–‹Žƒ–‘”—•‡†™‹–Šƒƒ‡•–Š‡•‹ƒƒ’’ƒ”ƒ–—•

ȋ‹Ȍƒ‰‡–‹…‡•‘ƒ…‡ƒ‰‹‰›•–‡

ȋŒȌ—”‰‹…ƒŽƒ•‡”

ȋȌ‡–‹Žƒ–‘”•‘–Š‡”–Šƒ–Š‘•‡—•‡†™‹–Šƒƒ‡•–Š‡•‹ƒ

ȋŽȌ
ƒƒ‹ˆ‡
ȋȌ ‘‡ ƒ””‘™ ”ƒ•’Žƒ– “—‹’‡– ‹…Ž—†‹‰ •‹Žƒ•–‹… Ž‘‰ •–ƒ†‹‰‹–”ƒ˜‡‘—•
…ƒ–Š‡–‡”•ˆ‘”…Š‡‘–Š‡”ƒ’›
ȋȌ ‹„”‡‘’–‹…‡†‘•…‘’‡•‹…Ž—†‹‰ǡƒ‡†‹ƒ–”‹…”‡•‡…–‘•…‘’‡Ȁƒ—†‹–”‡•‡…–‘•…‘’‡ǡ‡”‹–‘‡‘Ǧ
•…‘’‡•ǡ ”–Š‘•…‘’‡ǡ ‹…”‘Žƒ”›‰‘•…‘’‹ ‹„”‡‘’–‹… Ž‡š‹„Ž‡ ƒ•ƒŽ Šƒ”›‰‘ ”‘…Š‘•…‘’‡ǡ
‹„”‡‘’–‹… Ž‡š‹„Ž‡ ƒ”›‰‘ ”‘…Š‘•…‘’‡ǡ ‹†‡‘ ƒ”›‰‘ ”‘…Š‘•…‘’‡ ƒ† ‹†‡‘ ‡•‘’Šƒ‰‘

ƒ•–”‘•…‘’‡ǡ–”‘„‘•…‘’‡ǡ ‹„”‡‘’–‹… Ž‡š‹„Ž‡‡•‘’Šƒ‰‘

ƒ•–”‘•…‘’‡

ȋ‘Ȍƒ’ƒ”‘•…‘’‡ȋ•‹‰Ž‡‹…‹•‹‘Ȍ

ȋͶȌ‘–ƒ‹‡”•ƒ†‡‘ˆ‰Žƒ••‘”’Žƒ•–‹…—•‡†ƒ•”‡Ǧϐ‹ŽŽ• ͶͲ

ȋͷȌ‘’—–‡”•‹…Ž—†‹‰…‘’—–‡”•‘ˆ–™ƒ”‡ȏ•‡‡‘–‡͹„‡Ž‘™–Š‡ƒ„Ž‡Ȑ ͶͲ
 ʹ͵͸ Lesson 4 Ȉ EP-TL

ȋ͸Ȍ ƒ…Š‹‡”› ƒ† ’Žƒ–ǡ —•‡† ‹ ™‡ƒ˜‹‰ǡ ’”‘…‡••‹‰ ƒ† ‰ƒ”‡– •‡…–‘” ‘ˆ –‡š–‹Ž‡
‹†—•–”›ǡ™Š‹…Š‹•’—”…Šƒ•‡†—†‡” ‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͳ„—–„‡ˆ‘”‡
ͶͲ
–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͶƒ†‹•’—––‘—•‡„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͶȏ•‡‡‘–‡ͺ„‡Ž‘™
–Š‡ƒ„Ž‡Ȑ
ȋ͹Ȍƒ…Š‹‡”›ƒ†’Žƒ–ǡƒ…“—‹”‡†ƒ†‹•–ƒŽŽ‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ‡’–‡„‡”ǡʹͲͲʹ
‹ ƒ ™ƒ–‡” •—’’Ž› ’”‘Œ‡…– ‘” ƒ ™ƒ–‡” –”‡ƒ–‡– •›•–‡ ƒ† ™Š‹…Š ‹• ’—– –‘ —•‡ˆ‘” –Š‡
ͶͲ
’—”’‘•‡‘ˆ„—•‹‡••‘ˆ’”‘˜‹†‹‰‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›—†‡”…Žƒ—•‡ȋ‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͶȌ
‘ˆ•‡…–‹‘ͺͲǦȏ•‡‡‘–‡•Ͷƒ†ͻ„‡Ž‘™–Š‡ƒ„Ž‡Ȑ
ȋͺȌȋ‹Ȍ‘‘†‡’ƒ”–•—•‡†‹ƒ”–‹ϐ‹…‹ƒŽ•‹Žƒ—ˆƒ…–—”‹‰ƒ…Š‹‡”› ͶͲ

ȋ‹‹Ȍ‹‡ƒ–‘‰”ƒ’Šϐ‹Ž•Ȃ„—Ž„•‘ˆ•–—†‹‘Ž‹‰Š–• ͶͲ

ȋ‹‹‹Ȍƒ–…Šˆƒ…–‘”‹‡•Ȃ™‘‘†‡ƒ–…Šˆ”ƒ‡• ͶͲ

ȋ‹˜Ȍ‹‡•ƒ†“—ƒ””‹‡•ǣ ͶͲ

ȋƒȌ—„•ǡ™‹†‹‰”‘’‡•ǡŠƒ—Žƒ‰‡”‘’‡•ƒ†•ƒ†•–‘™‹‰’‹’‡•

ȋ„Ȍƒˆ‡–›Žƒ’•

ȋ˜ȌƒŽ–™‘”•ȂƒŽ–’ƒ•ǡ”‡•‡”˜‘‹”•ƒ†…‘†‡•‡”•ǡ‡–…Ǥǡƒ†‡‘ˆ‡ƒ”–Š›•ƒ†›‘”…Žƒ›‡›
ͶͲ
ƒ–‡”‹ƒŽ‘”ƒ›‘–Š‡”•‹‹Žƒ”ƒ–‡”‹ƒŽ

ȋ˜‹Ȍ Ž‘—”‹ŽŽ•Ȃ‘ŽŽ‡”• ͶͲ

ȋ˜‹‹Ȍ”‘ƒ†•–‡‡Ž‹†—•–”›Ȃ‘ŽŽ‹‰‹ŽŽ”‘ŽŽ• ͶͲ

ȋ˜‹Ȍ—‰ƒ”™‘”•Ȃ‘ŽŽ‡”• ͶͲ

ȋ‹šȌ‡”‰›•ƒ˜‹‰†‡˜‹…‡•ǡ„‡‹‰ Ȃ

Ǥ’‡…‹ƒŽ‹•‡†„‘‹Ž‡”•ƒ†ˆ—”ƒ…‡•ǣ

ȋƒȌ‰‹ϐŽ—‹†ȀϐŽ—‹†‹œ‡†„‡†„‘‹Ž‡”•

ȋ„Ȍ Žƒ‡Ž‡••ˆ—”ƒ…‡•ƒ†…‘–‹—‘—•’—•Š‡”–›’‡ˆ—”ƒ…‡•

ȋ…Ȍ Ž—‹†‹œ‡†„‡†–›’‡Š‡ƒ––”‡ƒ–‡–ˆ—”ƒ…‡• ͶͲ

ȋ†Ȍ‹‰Š‡ˆϐ‹…‹‡…›„‘‹Ž‡”•ȋ–Š‡”ƒŽ‡ˆϐ‹…‹‡…›Š‹‰Š‡”–Šƒ͹ͷ’‡”…‡–‹…ƒ•‡‘ˆ…‘ƒŽϐ‹”‡†
ƒ†ͺͲ’‡”…‡–‹…ƒ•‡‘ˆ‘‹ŽȀ‰ƒ•ϐ‹”‡†„‘‹Ž‡”•Ȍ

Ǥ•–”—‡–ƒ–‹‘ƒ†‘‹–‘”‹‰•›•–‡ˆ‘”‘‹–‘”‹‰‡‡”‰›ϐŽ‘™•ǣ

ȋƒȌ—–‘ƒ–‹…‡Ž‡…–”‹…ƒŽŽ‘ƒ†‘‹–‘”‹‰•›•–‡•

ȋ„Ȍ‹‰‹–ƒŽŠ‡ƒ–Ž‘••‡–‡”•

ȋ…Ȍ‹…”‘Ǧ’”‘…‡••‘”„ƒ•‡†…‘–”‘Ž•›•–‡•

ȋ†Ȍˆ”ƒǦ”‡†–Š‡”‘‰”ƒ’Š› ͶͲ

ȋ‡Ȍ ‡–‡”• ˆ‘” ‡ƒ•—”‹‰ Š‡ƒ– Ž‘••‡•ǡ ˆ—”ƒ…‡ ‘‹Ž ϐŽ‘™ǡ •–‡ƒ ϐŽ‘™ǡ ‡Ž‡…–”‹…‡‡”‰›ƒ†
’‘™‡”ˆƒ…–‘”‡–‡”•

ȋˆȌƒš‹—†‡ƒ†‹†‹…ƒ–‘”ƒ†…Žƒ’‘’‘™‡”‡–‡”•
Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹ͵͹

ȋ‰ȌšŠƒ—•–‰ƒ•‡•ƒƒŽ›•‡”

ȋŠȌ —‡Ž‘‹Ž’—’–‡•–„‡…Š

Ǥƒ•–‡Š‡ƒ–”‡…‘˜‡”›‡“—‹’‡–

ȋƒȌ…‘‘‹œ‡”•ƒ†ˆ‡‡†•™ƒ–‡”Š‡ƒ–‡”•

ȋ„Ȍ‡…—’‡”ƒ–‡•ƒ†ƒ‹”’”‡ǦŠ‡ƒ–‡”• ͶͲ

ȋ…Ȍ‡ƒ–’—’•

ȋ†ȌŠ‡”ƒŽ‡‡”‰›™Š‡‡Žˆ‘”Š‹‰Šƒ†Ž‘™–‡’‡”ƒ–—”‡™ƒ•–‡Š‡ƒ–”‡…‘˜‡”›

Ǥ‘Ǧ‰‡‡”ƒ–‹‘•›•–‡•ǣ

ȋƒȌƒ…’”‡••—”‡’ƒ••‘—–ǡ…‘–”‘ŽŽ‡†‡š–”ƒ…–‹‘ǡ‡š–”ƒ…–‹‘Ǧ…—Ǧ…‘†‡•‹‰–—”„‹‡•ˆ‘”
…‘Ǧ‰‡‡”ƒ–‹‘ƒŽ‘‰™‹–Š’”‡••—”‡„‘‹Ž‡”•

ȋ„Ȍƒ’‘—”ƒ„•‘”’–‹‘”‡ˆ”‹‰‡”ƒ–‹‘•›•–‡• ͶͲ

ȋ…Ȍ”‰ƒ‹…”ƒ‹‡…›…Ž‡’‘™‡”•›•–‡•

ȋ†Ȍ‘™‹Ž‡–’”‡••—”‡•ƒŽŽ•–‡ƒ–—”„‹‡•

ǤŽ‡…–”‹…ƒŽ‡“—‹’‡–ǣ

ȋƒȌŠ—–…ƒ’ƒ…‹–‘”•ƒ†•›…Š”‘‘—•…‘†‡•‡”•›•–‡•

ȋ„Ȍ—–‘ƒ–‹…’‘™‡”…—–‘ˆˆ†‡˜‹…‡•ȋ”‡Žƒ›•Ȍ‘—–‡†‘‹†‹˜‹†—ƒŽ‘–‘”•

ȋ…Ȍ—–‘ƒ–‹…˜‘Ž–ƒ‰‡…‘–”‘ŽŽ‡”

ȋ†Ȍ‘™‡”ˆƒ…–‘”…‘–”‘ŽŽ‡”ˆ‘”‘–‘”•

ȋ‡Ȍ‘Ž‹†•–ƒ–‡†‡˜‹…‡•ˆ‘”…‘–”‘ŽŽ‹‰‘–‘”•’‡‡†• ͶͲ

ȋˆȌŠ‡”ƒŽŽ›‡‡”‰›Ǧ‡ˆϐ‹…‹‡–•–‡–‡”•ȋ™Š‹…Š”‡“—‹”‡ͺͲͲ‘”Ž‡••‹Ž‘…ƒŽ‘”‹‡•‘ˆ Š‡ƒ––‘
‡˜ƒ’‘”ƒ–‡‘‡‹Ž‘‰”ƒ‘ˆ™ƒ–‡”Ȍ

ȋ‰Ȍ‡”‹‡•…‘’‡•ƒ–‹‘‡“—‹’‡–

ȋŠȌ Ž‡š‹„Ž‡ ”ƒ•‹••‹‘ ȋ Ȍ †‡˜‹…‡• Ȃ Š›”‹•–‘” …‘–”‘ŽŽ‡† •‡”‹‡•…‘’‡•ƒ–‹‘

‡“—‹’‡–

ȋ‹Ȍ‹‡‘ˆƒ›ȋȌ‡‡”‰›‡–‡”•
ȋŒȌ “—‹’‡– –‘ ‡•–ƒ„Ž‹•Š –”ƒ•‹••‹‘ Š‹‰Š™ƒ›• ˆ‘” ƒ–‹‘ƒŽ ‘™‡”
”‹† –‘ ˆƒ…‹Ž‹–ƒ–‡
–”ƒ•ˆ‡”‘ˆ•—”’Ž—•’‘™‡”‘ˆ‘‡”‡‰‹‘–‘–Š‡†‡ϐ‹…‹‡–”‡‰‹‘
ȋȌ ‡‘–‡ –‡”‹ƒŽ —‹–•Ȁ‹–‡ŽŽ‹‰‡– ‡Ž‡…–”‘‹… †‡˜‹…‡•ǡ …‘’—–‡” Šƒ”†™ƒ”‡Ȁ•‘ˆ–™ƒ”‡ǡ
”‘—–‡”Ȁ„”‹†‰‡•ǡ ‘–Š‡” ”‡“—‹”‡† ‡“—‹’‡– ƒ† ƒ••‘…‹ƒ–‡† …‘—‹…ƒ–‹‘ •›•–‡• ˆ‘”
•—’‡”˜‹•‘”› …‘–”‘Ž ƒ† †ƒ–ƒ ƒ…“—‹•‹–‹‘ •›•–‡•ǡ ‡‡”‰› ƒƒ‰‡‡– •›•–‡• ƒ†
†‹•–”‹„—–‹‘ƒƒ‰‡‡–•›•–‡•ˆ‘”’‘™‡”–”ƒ•‹••‹‘•›•–‡•

ȋŽȌ’‡…‹ƒŽ‡‡”‰›‡–‡”•ˆ‘”˜ƒ‹Žƒ„‹Ž‹–›ƒ•‡†ƒ”‹ˆˆȋȌ

Ǥ—”‡”•ǣ
 ʹ͵ͺ Lesson 4 Ȉ EP-TL

ȋƒȌͲ–‘ͳͲ’‡”…‡–‡š…‡••ƒ‹”„—”‡”•

ȋ„Ȍ—Ž•‹‘„—”‡”• ͶͲ

ȋ…Ȍ—”‡”•—•‹‰ƒ‹”™‹–ŠŠ‹‰Š’”‡ǦŠ‡ƒ––‡’‡”ƒ–—”‡ȋƒ„‘˜‡͵ͲͲ‘Ȍ

Ǥ–Š‡”‡“—‹’‡–ǣ ͶͲ

ȋƒȌ‡–ƒ‹”‘š‹†ƒ–‹‘‡“—‹’‡–ˆ‘””‡…‘˜‡”›‘ˆ…Š‡‹…ƒŽ•ƒ†Š‡ƒ–

ȋ„Ȍ‡…Šƒ‹…ƒŽ˜ƒ’‘—””‡…‘’”‡••‘”•

ȋ…ȌŠ‹ϐ‹Ž‡˜ƒ’‘”ƒ–‘”•

ȋ†Ȍ—–‘ƒ–‹…‹…”‘Ǧ’”‘…‡••‘”„ƒ•‡†Ž‘ƒ††‡ƒ†…‘–”‘ŽŽ‡”•

ȋ‡Ȍ‘ƒŽ„ƒ•‡†’”‘†—…‡”‰ƒ•’Žƒ–•

ȋˆȌ Ž—‹††”‹˜‡•ƒ†ϐŽ—‹†…‘—’Ž‹‰•

ȋ‰Ȍ—”„‘…Šƒ”‰‡•Ȁ•—’‡”Ǧ…Šƒ”‰‡•

ȋŠȌ‡ƒŽ‡†”ƒ†‹ƒ–‹‘•‘—”…‡•ˆ‘””ƒ†‹ƒ–‹‘’”‘…‡••‹‰’Žƒ–•

ȋšȌ
ƒ•…›Ž‹†‡”•‹…Ž—†‹‰˜ƒŽ˜‡•ƒ†”‡‰—Žƒ–‘”• ͶͲ

ȋš‹Ȍ
Žƒ••ƒ—ˆƒ…–—”‹‰…‘…‡”•Ȃ‹”‡…–ϐ‹”‡‰Žƒ••‡Ž–‹‰ˆ—”ƒ…‡• ͶͲ

ȋš‹‹Ȍ‹‡”ƒŽ‘‹Ž…‘…‡”•ǣ ͶͲ

ȋƒȌ Žƒ– —•‡† ‹ ϐ‹‡Ž† ‘’‡”ƒ–‹‘• ȋƒ„‘˜‡ ‰”‘—†Ȍ †‹•–”‹„—–‹‘ Ȃ ‡–—”ƒ„Ž‡’ƒ…ƒ‰‡•
ȋ„Ȍ Žƒ– —•‡† ‹ ϐ‹‡Ž† ‘’‡”ƒ–‹‘• ȋ„‡Ž‘™ ‰”‘—†Ȍǡ „—– ‘– ‹…Ž—†‹‰ ‡”„•‹†‡ ’—’•
‹…Ž—†‹‰ —†‡” ‰”‘—† –ƒ• ƒ† ϐ‹––‹‰• —•‡† ‹ ϐ‹‡Ž† ‘’‡”ƒ–‹‘• ȋ†‹•–”‹„—–‹‘Ȍ „›
‹‡”ƒŽ‘‹Ž…‘…‡”•

ȋš‹‹‹Ȍ‡‡™ƒ„Ž‡‡‡”‰›†‡˜‹…‡•„‡‹‰ǣ ͶͲ

ȋƒȌ Žƒ–’Žƒ–‡•‘Žƒ”…‘ŽŽ‡…–‘”•

ȋ„Ȍ‘…‡–”ƒ–‹‰ƒ†’‹’‡–›’‡•‘Žƒ”…‘ŽŽ‡…–‘”•

ȋ…Ȍ‘Žƒ”…‘‘‡”•

ȋ†Ȍ‘Žƒ”™ƒ–‡”Š‡ƒ–‡”•ƒ†•›•–‡•

ȋ‡Ȍ‹”Ȁ‰ƒ•ȀϐŽ—‹†Š‡ƒ–‹‰•›•–‡•

ȋˆȌ‘Žƒ”…”‘’†”‹˜‡”•ƒ†•›•–‡•

ȋ‰Ȍ‘Žƒ””‡ˆ”‹‰‡”ƒ–‹‘ǡ…‘Ž†•–‘”ƒ‰‡•ƒ†ƒ‹”…‘†‹–‹‘‹‰•›•–‡•

ȋŠȌ‘Žƒ”•–‡‡Ž•ƒ††‡•ƒŽ‹ƒ–‹‘•›•–‡•

ȋ‹Ȍ‘Žƒ”’‘™‡”‰‡‡”ƒ–‹‰•›•–‡•

ȋŒȌ‘Žƒ”’—’•„ƒ•‡†‘•‘Žƒ”Ǧ–Š‡”ƒŽƒ†•‘Žƒ”Ǧ’Š‘–‘˜‘Ž–ƒ‹……‘˜‡”•‹‘
 Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹ͵ͻ

ȋȌ‘Žƒ”Ǧ’Š‘–‘˜‘Ž–ƒ‹…‘†—Ž‡•ƒ†’ƒ‡Ž•ˆ‘”™ƒ–‡”’—’‹‰ƒ†‘–Š‡”ƒ’’Ž‹…ƒ–‹‘•

ȋŽȌ‹†‹ŽŽ•ƒ†ƒ›•’‡…‹ƒŽŽ›†‡•‹‰‡††‡˜‹…‡•™Š‹…Š”—‘™‹†‹ŽŽ•

ȋȌ›•’‡…‹ƒŽ†‡˜‹…‡•‹…Ž—†‹‰‡Ž‡…–”‹…‰‡‡”ƒ–‘”•ƒ†’—’•”—‹‰‘™‹†‡‡”‰›

ȋȌ‹‘‰ƒ•Ǧ’Žƒ–ƒ†„‹‘‰ƒ•Ǧ‡‰‹‡•

ȋ‘ȌŽ‡…–”‹…ƒŽŽ›‘’‡”ƒ–‡†˜‡Š‹…Ž‡•‹…Ž—†‹‰„ƒ––‡”›’‘™‡”‡†‘”ˆ—‡ŽǦ…‡ŽŽ’‘™‡”‡†˜‡Š‹…Ž‡•

ȋ’Ȍ‰”‹…—Ž–—”ƒŽƒ†—‹…‹’ƒŽ™ƒ•–‡…‘˜‡”•‹‘†‡˜‹…‡•’”‘†—…‹‰‡‡”‰›

ȋ“Ȍ“—‹’‡–ˆ‘”—–‹Ž‹•‹‰‘…‡ƒ™ƒ•–‡ƒ†–Š‡”ƒŽ‡‡”‰›

ȋ”Ȍƒ…Š‹‡”›ƒ†’Žƒ–—•‡†‹–Š‡ƒ—ˆƒ…–—”‡‘ˆƒ›‘ˆ–Š‡ƒ„‘˜‡•—„Ǧ‹–‡•

ȋͻȌȋ‹Ȍ‘‘•‘™‡†„›ƒ••‡••‡‡•…ƒ””›‹‰‘ƒ’”‘ˆ‡••‹‘ǣ
ȋƒȌ‘‘•ǡ„‡‹‰ƒ—ƒŽ’—„Ž‹…ƒ–‹‘• ͶͲ
ȋ„Ȍ‘‘•ǡ‘–Š‡”–Šƒ–Š‘•‡…‘˜‡”‡†„›‡–”›ȋƒȌƒ„‘˜‡ ͶͲ
ȋ‹‹Ȍ‘‘•‘™‡†„›ƒ••‡••‡‡•…ƒ””›‹‰‘„—•‹‡••‹”—‹‰Ž‡†‹‰Ž‹„”ƒ”‹‡• ͶͲ
Ǥ
ȋͳȌ…‡ƒǦ‰‘‹‰•Š‹’•‹…Ž—†‹‰†”‡†‰‡”•ǡŽ—‰•ǡ„ƒ”‰‡•ǡ•—”˜‡›Žƒ—…Š‡•ƒ†‘–Š‡”•‹‹Žƒ”
ʹͲ
•Š‹’•—•‡†ƒ‹Ž›ˆ‘”†”‡†‰‹‰’—”’‘•‡•ƒ†ϐ‹•Š‹‰˜‡••‡Ž•™‹–Š™‘‘†‡Š—ŽŽ

ȋʹȌ‡••‡Ž•‘”†‹ƒ”‹Ž›‘’‡”ƒ–‹‰‘‹Žƒ†™ƒ–‡”•ǡ‘–…‘˜‡”‡†„›•—„Ǧ‹–‡ȋ͵Ȍ„‡Ž‘™ ʹͲ

ȋ͵Ȍ‡••‡Ž•‘”†‹ƒ”‹Ž›‘’‡”ƒ–‹‰‘‹Žƒ†™ƒ–‡”•„‡‹‰•’‡‡†„‘ƒ–•ȏ•‡‡‘–‡ͳͲ„‡Ž‘™
ʹͲ
ƒ„Ž‡ȐʹͲ–Š‡


‘™ǦŠ‘™ǡ’ƒ–‡–•ǡ…‘’›”‹‰Š–•ǡ–”ƒ†‡ƒ”•ǡŽ‹…‡…‡•ǡˆ”ƒ…Š‹•‡•‘”ƒ›‘–Š‡”„—•‹‡••‘”
ʹͷ
…‘‡”…‹ƒŽ”‹‰Š–•‘ˆ•‹‹Žƒ”ƒ–—”‡

‘–‡•ǣ
ͳǤ Dz—‹Ž†‹‰•dz‹…Ž—†‡”‘ƒ†•ǡ„”‹†‰‡•ǡ…—Ž˜‡”–•ǡ™‡ŽŽ•ƒ†–—„‡™‡ŽŽ•Ǥ
ʹǤ „—‹Ž†‹‰•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ„—‹Ž†‹‰—•‡†ƒ‹Ž›ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•ǡ‹ˆ–Š‡„—‹Ž–Ǧ—’ϐŽ‘‘”ƒ”‡ƒ
–Š‡”‡‘ˆ—•‡†ˆ‘””‡•‹†‡–‹ƒŽ’—”’‘•‡•‹•‘–Ž‡••–Šƒ•‹š–›Ǧ•‹šƒ†–™‘Ǧ–Š‹”†’‡”…‡–‘ˆ‹–•–‘–ƒŽ„—‹Ž–Ǧ—’ϐŽ‘‘”
ƒ”‡ƒƒ†•ŠƒŽŽ‹…Ž—†‡ƒ›•—…Š„—‹Ž†‹‰‹–Š‡ˆƒ…–‘”›’”‡‹•‡•Ǥ
͵Ǥ  ”‡•’‡…– ‘ˆ ƒ› •–”—…–—”‡ ‘” ™‘” „› ™ƒ› ‘ˆ ”‡‘˜ƒ–‹‘ ‘” ‹’”‘˜‡‡– ‹ ‘” ‹ ”‡Žƒ–‹‘ –‘ ƒ „—‹Ž†‹‰
”‡ˆ‡””‡†–‘‹š’Žƒƒ–‹‘ͳ‘ˆ…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵ʹǡ–Š‡’‡”…‡–ƒ‰‡–‘„‡ƒ’’Ž‹‡†™‹ŽŽ„‡
–Š‡’‡”…‡–ƒ‰‡•’‡…‹ϐ‹‡†ƒ‰ƒ‹•–•—„Ǧ‹–‡ȋͳȌ‘”ȋʹȌ‘ˆ‹–‡’‡”…‡–ƒ‰‡–‘„‡ƒ’’Ž‹‡†™‹ŽŽ„‡–Š‡’‡”…‡–ƒ‰‡
•’‡…‹ϐ‹‡†ƒ‰ƒ‹•–•—„Ǧ‹–‡ȋͳȌ‘”ȋʹȌ‘ˆ‹–‡ƒ•ƒ›„‡ƒ’’”‘’”‹ƒ–‡–‘–Š‡…Žƒ••‘ˆ„—‹Ž†‹‰‹‘”‹”‡Žƒ–‹‘
–‘™Š‹…Š–Š‡”‡‘˜ƒ–‹‘‘”‹’”‘˜‡‡–‹•‡ˆˆ‡…–‡†ǤŠ‡”‡–Š‡•–”—…–—”‡‹•…‘•–”—…–‡†‘”–Š‡™‘”‹•†‘‡
„›™ƒ›‘ˆ‡š–‡•‹‘‘ˆƒ›•—…Š„—‹Ž†‹‰ǡ–Š‡’‡”…‡–ƒ‰‡–‘„‡ƒ’’Ž‹‡†™‘—Ž†„‡•—…Š’‡”…‡–ƒ‰‡ƒ•™‘—Ž†„‡
ƒ’’”‘’”‹ƒ–‡ǡƒ•‹ˆ–Š‡•–”—…–—”‡‘”™‘”…‘•–‹–—–‡†ƒ•‡’ƒ”ƒ–‡„—‹Ž†‹‰Ǥ
ͶǤ ƒ–‡”–”‡ƒ–‡–•›•–‡‹…Ž—†‡••›•–‡ˆ‘”†‡•ƒŽ‹‹•ƒ–‹‘ǡ†‡‹‡”ƒŽ‹•ƒ–‹‘ƒ†’—”‹ϐ‹…ƒ–‹‘‘ˆ™ƒ–‡”Ǥ
ͷǤ DzŽ‡…–”‹…ƒŽϐ‹––‹‰•dz‹…Ž—†‡‡Ž‡…–”‹…ƒŽ™‹”‹‰ǡ•™‹–…Š‡•ǡ•‘…‡–•ǡ‘–Š‡”ϐ‹––‹‰•ƒ†ˆƒ•ǡ‡–…Ǥ
͸Ǥ Dz‘‡”…‹ƒŽ˜‡Š‹…Ž‡dz‡ƒ•DzŠ‡ƒ˜›‰‘‘†•˜‡Š‹…Ž‡dzǡDzŠ‡ƒ˜›’ƒ••‡‰‡”‘–‘”˜‡Š‹…Ž‡dzǡDzŽ‹‰Š–‘–‘”˜‡Š‹…Ž‡dzǡ
Dz‡†‹—‰‘‘†•˜‡Š‹…Ž‡dzƒ†Dz‡†‹—’ƒ••‡‰‡”‘–‘”˜‡Š‹…Ž‡dz„—–†‘‡•‘–‹…Ž—†‡Dzƒš‹Ǧ…ƒ„dzǡDz‘–‘”Ǧ
 ʹͶͲ Lesson 4 Ȉ EP-TL

…ƒ„dzǡ Dz–”ƒ…–‘”dz ƒ† Dz”‘ƒ†Ǧ”‘ŽŽ‡”dzǤ Š‡ ‡š’”‡••‹‘• DzŠ‡ƒ˜› ‰‘‘†• ˜‡Š‹…Ž‡dzǡ DzŠ‡ƒ˜› ’ƒ••‡‰‡” ‘–‘” ˜‡Š‹…Ž‡dzǡ
DzŽ‹‰Š– ‘–‘” ˜‡Š‹…Ž‡dzǡ Dz‡†‹— ‰‘‘†• ˜‡Š‹…Ž‡dzǡ Dz‡†‹— ’ƒ••‡‰‡” ‘–‘” ˜‡Š‹…Ž‡dzǡ Dzƒš‹…ƒ„dzǡ Dz‘–‘”Ǧ…ƒ„dzǡ
Dz–”ƒ…–‘”dzƒ†Dz”‘ƒ†Ǧ”‘ŽŽ‡”dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰•”‡•’‡…–‹˜‡Ž›ƒ•ƒ••‹‰‡†–‘–Š‡‹•‡…–‹‘ʹ‘ˆ–Š‡‘–‘”
‡Š‹…Ž‡•…–ǡͳͻͺͺȋͷͻ‘ˆͳͻͺͺȌǤ
͹Ǥ Dz‘’—–‡”•‘ˆ–™ƒ”‡dz‡ƒ•ƒ›…‘’—–‡”’”‘‰”ƒ‡”‡…‘”†‡†‘ƒ›†‹•…ǡ–ƒ’‡ǡ’‡”ˆ‘”ƒ–‡†‡†‹ƒ‘”‘–Š‡”
‹ˆ‘”ƒ–‹‘•–‘”ƒ‰‡†‡˜‹…‡Ǥ
ͺǤ Dz dz‡ƒ•‡…Š‘Ž‘‰›’‰”ƒ†ƒ–‹‘ —†…Š‡‡ƒ‘—…‡†„›–Š‡
‘˜‡”‡–‘ˆ†‹ƒ‹–Š‡ˆ‘”‘ˆƒ
‡•‘Ž—–‹‘‘ˆ–Š‡‹‹•–”›‘ˆ‡š–‹Ž‡•˜‹†‡‘ǤʹͺȀͳȀͻͻǦ‘ˆ͵ͳǤ͵ǤͳͻͻͻǤ
ͻǤ ƒ…Š‹‡”›ƒ†’Žƒ–‹…Ž—†‡•’‹’‡•‡‡†‡†ˆ‘”†‡Ž‹˜‡”›ˆ”‘–Š‡•‘—”…‡‘ˆ•—’’Ž›‘ˆ”ƒ™™ƒ–‡”–‘–Š‡’Žƒ–
ƒ†ˆ”‘–Š‡’Žƒ––‘–Š‡•–‘”ƒ‰‡ˆƒ…‹Ž‹–›Ǥ
ͳͲǤ Dz’‡‡†„‘ƒ–dz‡ƒ•ƒ‘–‘”„‘ƒ–†”‹˜‡„›ƒŠ‹‰Š•’‡‡†‹–‡”ƒŽ…‘„—•–‹‘‡‰‹‡…ƒ’ƒ„Ž‡‘ˆ’”‘’‡ŽŽ‹‰–Š‡
„‘ƒ–ƒ–ƒ•’‡‡†‡š…‡‡†‹‰ʹͶ‹Ž‘‡–‡”•’‡”Š‘—”‹•–‹ŽŽ™ƒ–‡”ƒ†•‘†‡•‹‰‡†–Šƒ–™Š‡”—‹‰ƒ–ƒ•’‡‡†ǡ
‹–™‹ŽŽ’Žƒ‡ǡ‹Ǥ‡Ǥǡ‹–•„‘™™‹ŽŽ”‹•‡ˆ”‘–Š‡™ƒ–‡”Ǥ



ͳǤ ʹͲͳͲ ‹Œƒ›ƒƒ˜Ǥ‘‹••‹‘‡”‘ˆ…‘‡ƒš —’”‡‡‘—”–

Dz…–—ƒŽ ™”‹–‡ ‘ˆˆdz ‘ˆ ‹†‹˜‹†—ƒŽ †‡„–‘”ǯ• ƒ……‘—– ‹• ‘– ‡…‡••ƒ”› —†‡” ͵͸ȋͳȌȋ˜‹‹Ȍ ƒ† ‡„–ǡ ‘ˆ –Š‡
…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
‡…‹•‹‘ǣƒ“—‡•–‹‘„‡ˆ‘”‡–Š‡‘ǯ„Ž‡—’”‡‡‘—”–™Š‡–Š‡”‹–‹•‹’‡”ƒ–‹˜‡ˆ‘”ƒ••‡••‡‡Ǧ„ƒ–‘…Ž‘•‡
‹†‹˜‹†—ƒŽ ƒ……‘—– ‘ˆ ‡ƒ…Š ‘ˆ ‹–• †‡„–‘”• ‹ ‹–• „‘‘• ˆ‘” …Žƒ‹‹‰ †‡†—…–‹‘ —†‡” •‡…–‹‘ ͵͸ȋͳȌȋ˜‹‹Ȍ ‘ˆ –Š‡
…‘‡Ǧ–ƒš…–ǡ–Š‡—’”‡‡‘—”–”‡ˆ‡””‹‰–‘‹–•Œ—†‰‡‡–‹‘—–Š‡”‡…Š‘Ž‘‰‹‡•‹‹–‡†˜Ǥ ‘‹–ͻ
Š‡Ž†–Šƒ–‹‘”†‡”–‘—†‡”•–ƒ†–Š‡–‡”Dz™”‹–‡Ǧ‘ˆˆdz‘‡Šƒ•–‘•‡‡Š‘™–Š‡™”‹–‡‘ˆˆŠƒ•„‡‡‡ˆˆ‡…–‡†Ǥˆƒ
ƒ••‡••‡‡ †‡„‹–• ƒ ƒ‘—– ‘ˆ †‘—„–ˆ—Ž †‡„–‘”• –‘ ’”‘ϐ‹– ƒ† Ž‘•• ƒ……‘—– ƒ† …”‡†‹–• –Š‡ ƒ••‡– ƒ……‘—– ȋ‹Ǥ‡Ǥǡ
•—†”›†‡„–‘”•Ȍ‹–™‘—Ž†…‘•–‹–—–‡ƒƒ…–—ƒŽ™”‹–‡‘ˆˆ‘ˆƒ†‡„–Ǥ
–Š‡…‘–”ƒ”›ǡ‹ˆ–Š‡ƒ‘—–‹•…”‡†‹–‡†–‘Dz…—””‡–Ž‹ƒ„‹Ž‹–‹‡•ƒ†’”‘˜‹•‹‘•dzǡ–Š‡‹–™‘—Ž†„‡ƒ’”‘˜‹•‹‘Ǥ
–Š‡ Žƒ––‡” …ƒ•‡ –Š‡ ƒ••‡••‡‡ ™‘—Ž† ‘– „‡ ‡–‹–Ž‡† –‘ –Š‡ †‡†—…–‹‘ ƒˆ–‡” ͳǦͶǦͳͻͺͻǤ – ™ƒ• ƒŽ•‘ Š‡Ž† –Šƒ– –Š‡
ƒ••‡••‹‰‘ˆϐ‹…‡”™ƒ•‡’‘™‡”‡†–‘–ƒš–Š‡•—„•‡“—‡–”‡’ƒ›‡–ǡ‹ˆƒ›ǡ—†‡”•‡…–‹‘ͶͳȋͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš
…–Ǥ
‡ˆ‡”‡…‡ƒ›ƒŽ•‘„‡ƒ†‡–‘–Š‡—’”‡‡‘—”–†‡…‹•‹‘‹ ‹‹–‡†˜•ͳͲ™Š‡”‡‹‹–™ƒ•Š‡Ž†–Šƒ–
„ƒ††‡„–•‡‡†‘–„‡’”‘˜‡–‘„‡‹””‡…‘˜‡”ƒ„Ž‡—†‡”•‡…–‹‘͵͸ȋͳȌȋ˜‹‹ȌǤ–‹••—ˆϐ‹…‹‡–‹ˆ–Š‡›ƒ”‡™”‹––‡‘ˆˆǤ

Commissioner of Income-tax v. Smt. Sita Devi —Œƒ„ƒ†ƒ”›ƒƒ‹‰Š

ʹǤ ʹͲͳͲ
Juneja Court
‡‹••‹‘‘ˆƒŽ‹ƒ„‹Ž‹–›—†‡”•‡…–‹‘ͶͳȋͳȌ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ
‡…‹•‹‘ǣŠ‡‹‰Š‘—”–Š‡Ž†–Šƒ–‡”‡Ž›„‡…ƒ—•‡Ž‹ƒ„‹Ž‹–›™ƒ•‘—–•–ƒ†‹‰ˆ‘”–Š‡Žƒ•–•‹š›‡ƒ”•ǡ‹–…‘—Ž†‘–
„‡ ’”‡•—‡† –Šƒ– –Š‡ •ƒ‹† Ž‹ƒ„‹Ž‹–› Šƒ† …‡ƒ•‡† –‘ ‡š‹•–Ǥ – ™ƒ• ƒŽ•‘ …‘…‡†‡† –Šƒ– –Š‡”‡ ™ƒ• ‘ ‹Žƒ–‡”ƒŽ …–
„‡–™‡‡–Š‡ƒ••‡••‡‡ƒ†–Š‡…”‡†‹–‘”•ǡ™Š‹…Š‹†‹…ƒ–‡†–Šƒ––Š‡•ƒ‹†Ž‹ƒ„‹Ž‹–›Šƒ†…‡ƒ•‡†–‘‡š‹•–Ǥƒ„•‡…‡‘ˆ
ƒ›„‹Žƒ–‡”ƒŽƒ…–ǡ–Š‡•ƒ‹†Ž‹ƒ„‹Ž‹–›…‘—Ž†‘–Šƒ˜‡„‡‡–”‡ƒ–‡†ƒ•…‡ƒ•‡†Ǥ˜‹‡™‘ˆ–Š‡•‡ˆƒ…–•ǡ–Š‡‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍƒ•™‡ŽŽ ƒ•–Š‡”‹„—ƒŽ Šƒ†”‹‰Š–Ž›…‘‡–‘–Š‡…‘…Ž—•‹‘–Šƒ––Š‡••‡••‹‰ˆϐ‹…‡”Šƒ†™”‘‰Ž›
‹˜‘‡† –Š‡ š’Žƒƒ–‹‘  –‘ •‡…–‹‘ ͶͳȋͳȌ ƒ† ƒ†‡ –Š‡ ƒˆ‘”‡•ƒ‹† ƒ††‹–‹‘ ‘ –Š‡ „ƒ•‹• ‘ˆ ’”‡•—’–‹‘•ǡ
…‘Œ‡…–—”‡•ƒ†•—”‹•‡•Ǥ–Šƒ†„‡‡ˆ—”–Š‡”ˆ‘—†–Šƒ––Š‡••‡••‹‰ˆϐ‹…‡”Šƒ†ˆƒ‹Ž‡†–‘•Š‘™–Šƒ–‹ƒ›
‡ƒ”Ž‹‡”›‡ƒ”ƒŽŽ‘™ƒ…‡‘ˆ†‡†—…–‹‘Šƒ†„‡‡‹”‡•’‡…–‘ˆƒ›–”ƒ†‹‰Ž‹ƒ„‹Ž‹–›‹…—””‡†„›–Š‡ƒ••‡••‡‡Ǥ–™ƒ•
ƒŽ•‘ ‘– ’”‘˜‡† –Šƒ– ƒ› „‡‡ϐ‹– ™ƒ• ‘„–ƒ‹‡† „› –Š‡ ƒ••‡••‡‡ …‘…‡”‹‰ •—…Š ƒ –”ƒ†‹‰ Ž‹ƒ„‹Ž‹–› „› ™ƒ› ‘ˆ
”‡‹••‹‘‘”…‡••ƒ–‹‘–Š‡”‡‘ˆ†—”‹‰–Š‡…‘…‡”‡†›‡ƒ”ǤŠ—•ǡ–Š‡”‡†‹†‘–ƒ……”—‡ƒ›„‡‡ϐ‹––‘–Š‡ƒ••‡••‡‡
™Š‹…Š…‘—Ž†„‡†‡‡‡†–‘„‡–Š‡’”‘ϐ‹–‘”‰ƒ‹‘ˆ–Š‡ƒ••‡••‡‡ǯ•„—•‹‡••ǡ™Š‹…Š™‘—Ž†‘–Š‡”™‹•‡‘–„‡–Š‡
ƒ••‡••‡‡ǯ•‹…‘‡Ǥ–Šƒ†„‡‡ˆ—”–Š‡”ˆ‘—†ƒ•ƒˆƒ…––Šƒ––Š‡ƒ••‡••‡‡Šƒ†ϐ‹Ž‡†–Š‡…‘’‹‡•‘ˆƒ……‘—–•‘ˆ•—†”›
…”‡†‹–‘”••‹‰‡†„›–Š‡…‘…‡”‡†…”‡†‹–‘”•Ǥ
Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͶͳ

͵Ǥ ʹͲͳͶ CIT v. K and Co. ‡ŽŠ‹‹‰Š‘—”–

• ‹–‡”‡•– ‹…‘‡ ‘ ƒ”‰‹ ‘‡› †‡’‘•‹–‡† ™‹–Š „ƒ ˆ‘” ‘„–ƒ‹‹‰ „ƒ ‰—ƒ”ƒ–‡‡ –‘ …ƒ””› ‘
„—•‹‡••ǡ–ƒšƒ„Ž‡ƒ•„—•‹‡••‹…‘‡ǫ
‡…‹•‹‘ǣŠ‡‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡‹–‡”‡•–‹…‘‡”‡…‡‹˜‡†‘ˆ—†•‡’–ƒ•ƒ”‰‹‘‡›ˆ‘”‘„–ƒ‹‹‰
–Š‡„ƒ‰—ƒ”ƒ–‡‡™‘—Ž†„‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ

4. ʹͲͳͷ Additional CIT v. Dharmpur Sugar Mill (P) Ltd ŽŽƒŠƒ„ƒ†‹‰Š‘—”–

•‡š’‡†‹–—”‡‹…—””‡†ˆ‘”…‘•–”—…–‹‘‘ˆ–”ƒ•‹••‹‘Ž‹‡•„›–Š‡ƒ••‡••‡‡ˆ‘”•—’’Ž›‘ˆ’‘™‡”–‘
„›–Š‡ƒ••‡••‡‡†‡†—…–‹„Ž‡ƒ•”‡˜‡—‡‡š’‡†‹–—”‡ǫ
‡…‹•‹‘ǣ ‘ŽŽ‘™‹‰–Š‡’”‹…‹’Ž‡‘ˆŽƒ™Žƒ‹††‘™„›–Š‡—’”‡‡‘—”–‹’‹”‡ —–‡‹ŽŽ•ǯ…ƒ•‡ǡ–Š‡ŽŽƒŠƒ„ƒ†
‹‰Š‘—”–ǡ‹–Š‹•…ƒ•‡ǡŠ‡Ž†–Šƒ––Š‡‡š’‡†‹–—”‡™Š‹…Š™ƒ•‹…—””‡†„›–Š‡ƒ••‡••‡‡‹–Š‡Žƒ›‹‰‘ˆ–”ƒ•‹••‹‘
Ž‹‡•™ƒ•…Ž‡ƒ”Ž›‘–Š‡”‡˜‡—‡ƒ……‘—–ǤŠ‡–”ƒ•‹••‹‘Ž‹‡•ǡ—’‘‡”‡…–‹‘ǡ˜‡•–‡†ƒ„•‘Ž—–‡Ž›‹ǤŠ‡
‡š’‡†‹–—”‡ ™Š‹…Š ™ƒ• ‹…—””‡† „› –Š‡ ƒ••‡••‡‡ ™ƒ• ˆ‘” ƒ‹†‹‰ ‡ˆϐ‹…‹‡– …‘†—…– ‘ˆ ‹–• „—•‹‡•• •‹…‡ –Š‡
ƒ••‡••‡‡Šƒ†–‘•—’’Ž›‡Ž‡…–”‹…‹–›–‘‹–••‘Ž‡…‘•—‡”ǤŠ‹•™ƒ•‘–ƒƒ†˜ƒ–ƒ‰‡‘ˆƒ…ƒ’‹–ƒŽƒ–—”‡Ǥ

5. ʹͲͳ͵ CIT v. Orient Ceramics and Industries Ltd. ‡ŽŠ‹‹‰Š‘—”–

Šƒ–‹•–Š‡ƒ–—”‡‘ˆ‡š’‡†‹–—”‡‹…—””‡†‘‰Ž‘™Ǧ•‹‰„‘ƒ”†•†‹•’Žƒ›‡†ƒ–†‡ƒŽ‡”‘—–Ž‡–•Ǧ…ƒ’‹–ƒŽ‘”
”‡˜‡—‡ǫ
‡…‹•‹‘ǣŠ‡‡ŽŠ‹‹‰Š‘—”–Š‡Ž†–Šƒ–•—…Š‡š’‡†‹–—”‡‘‰Ž‘™•‹‰„‘ƒ”†•†‹•’Žƒ›‡†ƒ–†‡ƒŽ‡”‘—–Ž‡–•™ƒ•
”‡˜‡—‡‹ƒ–—”‡Ǥ

͸Ǥ ʹͲͳͳ CIT v. ITC Hotels Ltd. ƒ”ƒ–ƒƒ‹‰Š‘—”–

‘—Ž†–Š‡‡š’‡†‹–—”‡‹…—””‡†‘‹••—‡ƒ†…‘ŽŽ‡…–‹‘‘ˆ…‘˜‡”–‹„Ž‡†‡„‡–—”‡•„‡–”‡ƒ–‡†ƒ•”‡˜‡—‡
‡š’‡†‹–—”‡‘”…ƒ’‹–ƒŽ‡š’‡†‹–—”‡ǫ
‡…‹•‹‘ǣŠ‡ƒ”ƒ–ƒƒ‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡‡š’‡†‹–—”‡‹…—””‡†‘–Š‡‹••—‡ƒ†…‘ŽŽ‡…–‹‘‘ˆ†‡„‡–—”‡•
•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•”‡˜‡—‡‡š’‡†‹–—”‡‡˜‡‹…ƒ•‡‘ˆ…‘˜‡”–‹„Ž‡†‡„‡–—”‡•ǡ‹Ǥ‡Ǥǡ–Š‡†‡„‡–—”‡•™Š‹…ŠŠƒ†–‘
„‡…‘˜‡”–‡†‹–‘•Šƒ”‡•ƒ–ƒŽƒ–‡”†ƒ–‡Ǥ

—Œƒ„ƒ†ƒ”›ƒƒ‹‰Š

7. ʹͲͳʹ CIT v. Kap Scan and Diagnostic Centre P. Ltd.
Court
ƒ–Š‡…‘‹••‹‘’ƒ‹†–‘†‘…–‘”•„›ƒ†‹ƒ‰‘•–‹……‡–”‡ˆ‘””‡ˆ‡””‹‰’ƒ–‹‡–•ˆ‘”†‹ƒ‰‘•‹•„‡ƒŽŽ‘™‡†
ƒ•ƒ„—•‹‡••‡š’‡†‹–—”‡—†‡”•‡…–‹‘͵͹‘”™‘—Ž†‹–„‡–”‡ƒ–‡†ƒ•‹ŽŽ‡‰ƒŽƒ†ƒ‰ƒ‹•–’—„Ž‹…’‘Ž‹…›–‘
ƒ––”ƒ…–†‹•ƒŽŽ‘™ƒ…‡ǫ
‡…‹•‹‘ǣŠ‡†‡ƒ†‹‰ƒ•™‡ŽŽƒ•’ƒ›‹‰‘ˆ•—…Š…‘‹••‹‘‹•„ƒ†‹Žƒ™Ǥ–‹•‘–ƒˆƒ‹”’”ƒ…–‹…‡ƒ†‹•
‘’’‘•‡†–‘’—„Ž‹…’‘Ž‹…›ƒ†•Š‘—Ž†„‡†‹•…‘—”ƒ‰‡†ǤŠ—•ǡ–Š‡‹‰Š‘—”–Š‡Ž†–Šƒ–…‘‹••‹‘’ƒ‹†–‘†‘…–‘”•
ˆ‘””‡ˆ‡””‹‰’ƒ–‹‡–•ˆ‘”†‹ƒ‰‘•‹•‹•‘–ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ„—•‹‡••‡š’‡†‹–—”‡Ǥ

8. ʹͲͳͷ CIT v. KLN Agrotechs (P) Ltd ƒ”ƒ–ƒƒ‹‰Š‘—”–

Š‡”‡–Š‡Ž—’•—ƒ‘—–’ƒ‹†ƒ•‡‹‡‡––Ž‡‡–ȋȌǡ™‹–Š‘—–„‹ˆ—”…ƒ–‹‘‘ˆ‹–‡”‡•–ƒ†’”‹…‹’ƒŽǡ
Šƒ•„‡‡‘ˆˆ‡”‡†–‘–ƒš—†‡”•‡…–‹‘ͶͳȋͳȌǡ…ƒ–Š‡ƒ••‡••‡‡‡…Žƒ‹„‡‡ϐ‹–‘ˆ†‡†—…–‹‘‘ˆ‹–‡”‡•–ȋ‹–‡”‡•–
’ƒ‹†’Ž—•‹–‡”‡•–™ƒ‹˜‡†Ȍ—†‡”•‡…–‹‘Ͷ͵ǫ
‡…‹•‹‘ǣŠ‡‹‰Š‘—”–…‘…—””‡†™‹–Š–Š‡”‹„—ƒŽǯ•˜‹‡™–Šƒ–‹ˆ‘—–‘ˆ–Š‡–‘–ƒŽ•—‘ˆʹͷ͸ǤͷͶŽƒŠ•
™Š‹…ŠŠƒ•„‡‡‘ˆˆ‡”‡†ƒ†•—„Œ‡…–‡†–‘–ƒš„›–Š‡ƒ••‡••‡‡‹‹–•”‡–—”ǡ–Š‡ƒ‘—–‘ˆ—’ƒ‹†‹–‡”‡•–‘ˆ
ʹͶʹ Lesson 4 Ȉ EP-TL

ͳͻ͵Ǥͻ͸ŽƒŠ•‹•†‡†—…–‡†–Š‡–Š‡™ƒ‹˜‡†’”‹…‹’ƒŽ•—™‘—Ž†…‘‡–‘͸ʹǤͷͺŽƒŠ•ȋ‹Ǥ‡ǤǡͶͶͳǤ͵ͲŽƒŠ•‹—•
͵͹ͺǤ͹ʹŽƒŠ•Ȍǡ™Š‹…Š‹•–Š‡ƒ‘—–™Š‹…Š‘—‰Š––‘Šƒ˜‡„‡‡–ƒš‡†—†‡”•‡…–‹‘ͶͳȋͳȌǤƒ•‡†‘–Š‡ƒ„‘˜‡
”‡ƒ•‘‹‰ǡ–Š‡Š‡Ž†–Šƒ–‡‹–Š‡”–Š‡‹–‡”‡•–ƒ‘—–Šƒ•–‘„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘—†‡”•‡…–‹‘Ͷ͵‘”–Š‡
•—‘ˆˆ‡”‡†ˆ‘”–ƒšȋƒ•™ƒ‹˜‡†„›–Š‡„ƒȌŠƒ•–‘„‡”‡†—…‡†„›–Š‡ƒ‘—–‘ˆ‹–‡”‡•–Ǥ‡‹–Š‡”…ƒ•‡ǡ–Š‡
‡ˆˆ‡…–‹˜‡ƒ‘—–™Š‹…Š‹••—„Œ‡…–‡†–‘–ƒšǡ™‘—Ž†…‘‡–‘–Š‡•ƒ‡Ǥ

ͻǤ ʹͲͳ͸ Shasun Chemicals & Drugs Ltd v. CIT —’”‡‡‘—”–

ƒ…ƒ•‡™Š‡”‡’ƒ›‡–‘ˆ„‘—•†—‡–‘‡’Ž‘›‡‡•‹•’ƒ‹†–‘ƒ–”—•–ƒ†•—…Šƒ‘—–‹••—„•‡“—‡–Ž›
’ƒ‹†–‘–Š‡‡’Ž‘›‡‡•„‡ˆ‘”‡–Š‡•–‹’—Žƒ–‡††—‡†ƒ–‡ǡ™‘—Ž†–Š‡•ƒ‡„‡ƒŽŽ‘™ƒ„Ž‡—†‡”•‡…–‹‘͵͸ȋͳȌ
ȋ‹‹Ȍ™Š‹Ž‡…‘’—–‹‰„—•‹‡••‹…‘‡ǫ
‡…‹•‹‘ǣŠ‡’‡š‘—”–Š‡Ž†–Šƒ–•‡…–‹‘͵͸ȋͳȌ…‘–ƒ‹•˜ƒ”‹‘—•‹†•‘ˆ‡š’‡•‡•™Š‹…Šƒ”‡ƒŽŽ‘™ƒ„Ž‡ƒ•
†‡†—…–‹‘™Š‹Ž‡…‘’—–‹‰–Š‡„—•‹‡••‹…‘‡ǤŠ‡ƒ‘—–’ƒ‹†„›™ƒ›‘ˆ„‘—•‹•‘‡•—…Š‡š’‡†‹–—”‡
™Š‹…Š‹•ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘—†‡”•‡…–‹‘͵͸ȋͳȌȋ‹‹ȌǤ
–ƒŽ•‘Š‡Ž†–Šƒ––Š‡‡„ƒ”‰‘…‘–ƒ‹‡†‹•‡…–‹‘Ͷ͵ȋ„Ȍ‘”•‡…–‹‘ͶͲȋͻȌ†‘‡•‘–…‘‡‹–Š‡™ƒ›‘ˆ–Š‡
ƒ••‡••‡‡ǯ•…Žƒ‹ǡ•‹…‡–Š‡„‘—•™ƒ•—Ž–‹ƒ–‡Ž›’ƒ‹†–‘–Š‡‡’Ž‘›‡‡•„‡ˆ‘”‡–Š‡†—‡†ƒ–‡ƒ•’‡”–Š‡•–ƒ–—–‘”›
”‡“—‹”‡‡–ǤŠ‡”‡ˆ‘”‡ǡ–Š‡’ƒ›‡–‹”‡•’‡…–‘ˆ„‘—•‹•ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘ǡƒ•–Š‡”‡‹•‘†‹•’—–‡–Šƒ–
–Š‡ƒ‘—–™ƒ•’ƒ‹†„›–Š‡ƒ••‡••‡‡–‘‹–•‡’Ž‘›‡‡•„‡ˆ‘”‡–Š‡†—‡†ƒ–‡„›™Š‹…Š•—…Š’ƒ›‡–‹••—’’‘•‡†
–‘„‡ƒ†‡‹‘”†‡”–‘…Žƒ‹†‡†—…–‹‘—†‡”•‡…–‹‘͵͸ȋͳȌȋ‹‹ȌǤ
‘–‡ǣ–Š‹•…ƒ•‡ǡ–Š‡—’”‡‡‘—”–Šƒ•Š‡Ž†–Šƒ––Š‡„‘—•™ƒ•ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘—†‡”•‡…–‹‘͵͸ȋͳȌ
ȋ‹‹Ȍǡ‡˜‡–Š‘—‰Š‹–™ƒ• ‹‹–‹ƒŽŽ›”‡‹––‡†–‘–Š‡–”—•–…”‡ƒ–‡†ˆ‘”–Š‹•’—”’‘•‡ǡˆ”‘™Š‹…Š–Š‡’ƒ›‡– ™ƒ•
—Ž–‹ƒ–‡Ž›ƒ†‡–‘–Š‡‡’Ž‘›‡‡•„‡ˆ‘”‡–Š‡†—‡†ƒ–‡ǤŠ‡—’”‡‡‘—”–Šƒ•ƒ’’Ž‹‡†–Š‡…‘…‡’–‘ˆDz•—„•–ƒ…‡
‘˜‡”ˆ‘”dz‹ƒŽŽ‘™‹‰–Š‡†‡†—…–‹‘‘ˆ„‘—•’ƒ‹†—†‡”•‡…–‹‘͵͸ȋͳȌȋ‹‹Ȍ„›…‘•‹†‡”‹‰–Šƒ––Š‡’ƒ›‡–‘ˆ
„‘—• ™ƒ• —Ž–‹ƒ–‡Ž› ƒ†‡ –‘ ‡’Ž‘›‡‡• „‡ˆ‘”‡ –Š‡ •–‹’—Žƒ–‡† †—‡ †ƒ–‡Ǥ ’’Ž›‹‰ –Š‡ •ƒ‡ …‘…‡’–ǡ –Š‡
‹–‡”‹––‡– ’”‘…‡•• ‘ˆ …”‡ƒ–‹‘ ‘ˆ –”—•– ˆ‘” ”‡‹––ƒ…‡ ‘ˆ „‘—• ƒ† •—„•‡“—‡– ’ƒ›‡– –Š‡”‡ˆ”‘ –‘ –Š‡
‡’Ž‘›‡‡•ǡ ™Š‹…Š ˆ‘”‡† –Š‡ „ƒ•‹• ‘ˆ †‹•ƒŽŽ‘™ƒ…‡ ‘ˆ „‘—• „› –Š‡ ••‡••‹‰ ˆϐ‹…‡” ‘ –Š‡ „ƒ•‹• ‘ˆ –Š‡
’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͲȋͻȌŠƒ•„‡‡‹‰‘”‡†Ǥ‘™‡˜‡”ǡŠƒ†–Š‡’ƒ›‡––‘‡’Ž‘›‡‡•‘–„‡‡ƒ†‡„‡ˆ‘”‡
–Š‡•–‹’—Žƒ–‡††—‡†ƒ–‡ǡ†‡†—…–‹‘—†‡”•‡…–‹‘͵͸ȋͳȌȋ‹‹Ȍ™‘—Ž†‘–„‡ƒŽŽ‘™ƒ„Ž‡‡”‡Ž›„‡…ƒ—•‡–Š‡ƒ‘—–
™ƒ•”‡‹––‡†–‘–Š‡–”—•–„‡ˆ‘”‡–Š‡•–‹’—Žƒ–‡††—‡†ƒ–‡Ǥ–ƒ›„‡‘–‡†–Šƒ–ƒ•†ƒ–‡‘ˆϐ‹‘ˆ”‡–—”‘ˆ‹…‘‡
—†‡”•‡…–‹‘ͳ͵ͻȋͳȌ‹•ƒ’”‡Ǧ”‡“—‹•‹–‡ˆ‘”…Žƒ‹‹‰†‡†—…–‹‘—†‡”•‡…–‹‘͵͸ȋͳȌȋ‹‹ȌǤ

Ȁ•Ǥƒ›ƒŽƒ‘”’‘”ƒ–‹‘˜–Ǥ–†˜•Ǥ••‹•–ƒ–
ͳͲǤ ʹͲͳ͸ —’”‡‡‘—”–
Commissioner of Income Tax
…‘‡ˆ”‘‡–‘—–—•‹‡••‹•Ǯ”‘ϐ‹–•Ƭ‰ƒ‹•‘ˆ„—•‹‡••ǯ‘–Ǯ…‘‡ˆ”‘‘—•‡’”‘’‡”–›
‡…‹•‹‘ǣƒ”‡…‡–…ƒ•‡„‡–™‡‡Ȁ•Ǥƒ›ƒŽƒ‘”’‘”ƒ–‹‘˜–Ǥ–†˜•Ǥ••‹•–ƒ–‘‹••‹‘‡”‘ˆ…‘‡ƒšǡ
–Š‡—’”‡‡‘—”–‘ˆ†‹ƒŠƒ•†‡…Žƒ”‡†–Šƒ–ǡ…‘‡™Š‹…Š™ƒ•ƒ”‹•‡•ˆ”‘‡–‘—–„—•‹‡•••Š‘—Ž†„‡–ƒš‡†
—†‡”–Š‡‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘ǯ‘–Ǯ…‘‡ˆ”‘‘—•‡’”‘’‡”–›Ǥ
Š‡ƒ’’‡ŽŽƒ–Ǧƒ••‡••‡‡ǡƒ’”‹˜ƒ–‡Ž‹‹–‡†…‘’ƒ›ǡ‹•Šƒ˜‹‰Š‘—•‡’”‘’‡”–›ǡ™Š‹…ŠŠƒ•„‡‡”‡–‡†ƒ†–Š‡
ƒ••‡••‡‡‹•”‡…‡‹˜‹‰‹…‘‡ˆ”‘–Š‡•ƒ‹†’”‘’‡”–›„›™ƒ›‘ˆ”‡–Ǥ
Š‡†‹˜‹•‹‘„‡…Š…‘’”‹•‹‰‘ˆ —•–‹…‡‹Žƒ˜‡ƒ† —•–‹…‡ƒ‰‡•Š™ƒ”ƒ‘Šƒ•”‡Ž‹‡†–Š‡…ƒ•‡Š‡ƒ‹
”‘’‡”–‹‡•ƒ†˜‡•–‡–•–†Ǥ˜Ǥ‘‹••‹‘‡”‘ˆ…‘‡ƒšȏʹͲͳͷȐ͵͹͵͸͹͵ȋȌ–Šƒ–‹ˆƒƒ••‡••‡‡‹•
Šƒ˜‹‰Š‹•Š‘—•‡’”‘’‡”–›ƒ†„›™ƒ›‘ˆ„—•‹‡••Š‡‹•‰‹˜‹‰–Š‡’”‘’‡”–›‘”‡–ƒ†‹ˆŠ‡‹•”‡…‡‹˜‹‰”‡–
ˆ”‘–Š‡•ƒ‹†’”‘’‡”–›ƒ•Š‹•„—•‹‡••‹…‘‡ǡ–Š‡•ƒ‹†‹…‘‡ǡ‡˜‡‹ˆ‹–Š‡ƒ–—”‡‘ˆ”‡–ǡ•Š‘—Ž†„‡–”‡ƒ–‡†
ƒ•Dz—•‹‡••…‘‡dz„‡…ƒ—•‡–Š‡ƒ••‡••‡‡‹•Šƒ˜‹‰ƒ„—•‹‡••‘ˆ”‡–‹‰Š‹•’”‘’‡”–›ƒ†–Š‡”‡–™Š‹…ŠŠ‡
”‡…‡‹˜‡•‹•‹–Š‡ƒ–—”‡‘ˆŠ‹•„—•‹‡••‹…‘‡Ǥ
Š‹Ž‡•‡––‹‰ƒ•‹†‡–Š‡ƒ†”ƒ•‹‰Š‘—”– —†‰‡–ǡ–Š‡†‹˜‹•‹‘„‡…Š‘ˆ—’”‡‡‘—”–‘„•‡”˜‡†–Šƒ–ǡDz–Š‡
”‡–•Š‘—Ž†„‡–Š‡ƒ‹•‘—”…‡‘ˆ‹…‘‡‘”–Š‡’—”’‘•‡ˆ‘”™Š‹…Š–Š‡…‘’ƒ›‹•‹…‘”’‘”ƒ–‡†•Š‘—Ž†„‡–‘
‡ƒ”‹…‘‡ˆ”‘”‡–ǡ•‘ƒ•–‘ƒ‡–Š‡”‡–ƒŽ‹…‘‡–‘„‡–Š‡‹…‘‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†
Lesson 4 Ȉƒ”–Ȃ”‘ϐ‹–ƒ†
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ ʹͶ͵

ƒ‹•‘ˆ—•‹‡••‘””‘ˆ‡••‹‘dzǤ–‹•ƒƒ†‹––‡†ˆƒ…–‹–Š‡‹•–ƒ–…ƒ•‡–Šƒ––Š‡ƒ••‡••‡‡…‘’ƒ›Šƒ•‘Ž›‘‡
„—•‹‡••ƒ†–Šƒ–‹•‘ˆŽ‡ƒ•‹‰‹–•’”‘’‡”–›ƒ†‡ƒ”‹‰”‡––Š‡”‡ˆ”‘ǤŠ—•ǡ‡˜‡‘–Š‡ˆƒ…–—ƒŽƒ•’‡…–ǡ™‡†‘
‘–ϐ‹†ƒ›•—„•–ƒ…‡‹™Šƒ–Šƒ•„‡‡•—„‹––‡†„›–Š‡Ž‡ƒ”‡†…‘—•‡Žƒ’’‡ƒ”‹‰ˆ‘”–Š‡‡˜‡—‡dzǤ
DzŠ‡Œ—†‰‡–”‡Ž‹‡†—’‘„›–Š‡Ž‡ƒ”‡†…‘—•‡Žƒ’’‡ƒ”‹‰ˆ‘”–Š‡ƒ••‡••‡‡•“—ƒ”‡Ž›…‘˜‡”•–Š‡ˆƒ…–•‘ˆ–Š‡
…ƒ•‡‹˜‘Ž˜‡†‹–Š‡ƒ’’‡ƒŽ•ǤŠ‡„—•‹‡••‘ˆ–Š‡…‘’ƒ›‹•–‘Ž‡ƒ•‡‹–•’”‘’‡”–›ƒ†–‘‡ƒ””‡–ƒ†–Š‡”‡ˆ‘”‡ǡ
–Š‡‹…‘‡•‘‡ƒ”‡†•Š‘—Ž†„‡–”‡ƒ–‡†ƒ•‹–•„—•‹‡••‹…‘‡dzǤ

11. ʹͲͳͺ CIT v. Mahindra and Mahindra Ltd. —’”‡‡‘—”–

Š‡”‡–Š‡™ƒ‹˜‡”‹•‹”‡•’‡…–‘ˆŽ‘ƒ–ƒ‡ˆ‘”’—”…Šƒ•‡‘ˆ’Žƒ–ƒ†ƒ…Š‹‡”›ƒ†–‘‘Ž‹‰‡“—‹’‡–ǡ
™‘—Ž†–Š‡•ƒ‡„‡•—„Œ‡…––‘–ƒš‹–Š‡Šƒ†•‘ˆ–Š‡”‡…‹’‹‡–„›˜‹”–—‡‘ˆ–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹
‡‹–Š‡”•‡…–‹‘ʹͺȋ‹˜Ȍ‘”•‡…–‹‘ͶͳȋͳȌǫ
‡…‹•‹‘ǣ Š‡ ƒ••‡••‡‡ǡ ƒŠ‹†”ƒ ƒ† ƒŠ‹†”ƒ ‹• ƒ†˜ƒ…‡† ™‹–Š ƒ Ž‘ƒ ˆ‘” ’”‘…—”‡‡– ‘ˆ …ƒ’‹–ƒŽ ƒ••‡–•ǡ
ƒ‡Ž›ǡ ’Žƒ–ǡ ƒ…Š‹‡”› ƒ† –‘‘Ž‹‰ ‡“—‹’‡– ˆ”‘ ƒ ˆ‘”‡‹‰ ‘’ƒ› Ǥ ƒ–‡” ‘ǡ  –‘‘ ‘˜‡”  ƒ†
ƒ‰”‡‡†–‘™ƒ‹˜‡–Š‡’”‹…‹’ƒŽƒ‘—–‘ˆŽ‘ƒƒ†˜ƒ…‡†„›–‘–Š‡ƒ••‡••‡‡Ǧ…‘’ƒ›ǤŠ‹•™ƒ•…‘—‹…ƒ–‡†
–‘–Š‡ƒ••‡••‡‡Ǧ…‘’ƒ›™Š‹…Šϐ‹Ž‡†‹–•”‡–—”•Š‘™‹‰•Ǥͷ͹ǡ͹ͶǡͲ͸Ͷƒ•…‡••ƒ–‹‘‘ˆ‹–•Ž‹ƒ„‹Ž‹–›–‘™ƒ”†•Ǥ
Š‡…‘‡Ǧ–ƒšˆϐ‹…‡”…‘…Ž—†‡†–Šƒ––Š‡™ƒ‹˜‡”‘ˆ–Š‡Ž‘ƒƒ‘—–”‡’”‡•‡–‡†‹…‘‡ƒ†Š‡Ž†–Šƒ––Š‡•—
‘ˆ •Ǥ ͷ͹ǡ͹ͶǡͲ͸Ͷ ™ƒ• –ƒšƒ„Ž‡ —†‡” •‡…–‹‘ ʹͺȋ‹˜Ȍ ƒ• ƒ ’‡”“—‹•‹–‡Ǥ Š‡ ƒŽ–‡”ƒ–‡ ƒ”‰—‡– ‘ˆ –Š‡ ”‡˜‡—‡
ƒ—–Š‘”‹–‹‡•™ƒ•–Šƒ––Š‡•—™‘—Ž†„‡–ƒšƒ„Ž‡—†‡”•‡…–‹‘ͶͳȋͳȌƒ•ƒ™ƒ‹˜‡”‘ˆƒ–”ƒ†‹‰Ž‹ƒ„‹Ž‹–›Ǥ
Š‡ —’”‡‡ ‘—”– ‘„•‡”˜‡† –Šƒ– ˆ‘” ƒ’’Ž‹…ƒ„‹Ž‹–› ‘ˆ •‡…–‹‘ ʹͺȋ‹˜Ȍǡ ‹…‘‡ —•– ƒ”‹•‡ ˆ”‘ „—•‹‡•• ‘”
’”‘ˆ‡••‹‘ƒ†–Š‡„‡‡ϐ‹–”‡…‡‹˜‡†Šƒ•–‘„‡‹‘Ǧ‘‡–ƒ”›ˆ‘”ǤŠ‡ƒ‘—–‘ˆ•Ǥͷ͹ǡ͹ͶǡͲ͸Ͷǡ„‡‹‰ƒ…ƒ•Š
”‡…‡‹’–ǡ–Š‡”‡ˆ‘”‡ǡ†‘‡•‘–ˆƒŽŽ—†‡”•‡…–‹‘ʹͺȋ‹˜ȌǤ
‘”„‡‹‰…‘˜‡”‡†—†‡”•‡…–‹‘ͶͳȋͳȌǡ–Š‡ƒ••‡••‡‡Ǧ…‘’ƒ›•Š‘—Ž†Šƒ˜‡…Žƒ‹‡†ƒƒŽŽ‘™ƒ…‡‘”†‡†—…–‹‘
‹ƒ›ƒ••‡••‡–ˆ‘”ƒ››‡ƒ”‹”‡•’‡…–‘ˆƒ–”ƒ†‹‰Ž‹ƒ„‹Ž‹–›‹…—””‡†„›–Š‡ƒ••‡••‡‡Ǥ–Š‹•…ƒ•‡ǡ–Š‡Ž‘ƒ™ƒ•
–ƒ‡ˆ‘”’”‘…—”‡‡–‘ˆ…ƒ’‹–ƒŽƒ••‡–•ǡƒ‡Ž›ǡ’Žƒ–ǡƒ…Š‹‡”›ƒ†–‘‘Ž‹‰‡“—‹’‡–ǤŠ‡’—”…Šƒ•‡ƒ‘—–
Šƒ†‘–„‡‡†‡„‹–‡†–‘–Š‡–”ƒ†‹‰ƒ……‘—–‘”–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‹ƒ›‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”•Ǥ
‡…‡ǡ™ƒ‹˜‡”‘ˆ•—…ŠŽ‘ƒ™‘—Ž†‘––ƒ–ƒ‘—––‘…‡••ƒ–‹‘‘ˆƒ–”ƒ†‹‰Ž‹ƒ„‹Ž‹–›Ǥ

Ǧ

Ȉ ‡…–‹‘•ʹͺ–‘ͶͶ…‘–ƒ‹–Š‡’”‘˜‹•‹‘•ˆ‘”…‘’—–ƒ–‹‘‘ˆ…‘‡ˆ”‘—•‹‡••ƒ†”‘ˆ‡••‹‘Ǥ
Ȉ ‡…–‹‘ʹͺ†‡ϐ‹‡•–Š‡•…‘’‡‘ˆ‹…‘‡™Š‹…Š…ƒ„‡–ƒš‡†—†‡”–Š‹•Š‡ƒ†Ǥ
Ȉ ‡…–‹‘ʹͻ•’‡…‹ˆ›–Š‡‡–Š‘†‘ˆ…‘’—–ƒ–‹‘‘ˆ‹…‘‡—†‡”–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ
Ȉ š’‡•‡•ȀƒŽŽ‘™ƒ…‡•‡š’”‡••Ž›ƒŽŽ‘™‡†„›–Š‡…–ƒ”‡Ž‹•–‡†—†‡”•‡…–‹‘•ʹͺ–‘͵͹ǡ™Š‡”‡ƒ••‡…–‹‘•
ͶͲƒ†ͶͲ‡—‡”ƒ–‡–Š‘•‡‡š’‡•‡•™Š‹…Šƒ”‡‡š’”‡••Ž›†‹•ƒŽŽ‘™‡†ƒ†Ͷ͵‡š’‡•‡•–‘„‡ƒ†‡‘
ƒ…–—ƒŽ’ƒ›‡–„ƒ•‹•ǡ™Š‹Ž‡…‘’—–‹‰–ƒšƒ„Ž‡‹…‘‡—†‡”–Š‹•Š‡ƒ†Ǥ
Ȉ ‡…–‹‘ͶͶ’”‘˜‹†‡•ˆ‘”ƒ‹–‡ƒ…‡‘ˆƒ……‘—–•„›–Š‡ƒ••‡••‡‡…ƒ””›‹‰‘„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ
Ȉ ƒ†ƒ–‘”›–ƒšƒ—†‹–‘ˆƒ……‘—–•‘ˆ–Š‡’‡”•‘•…ƒ””›‹‰‘„—•‹‡••‘”’”‘ˆ‡••‹‘‹•’”‡•…”‹„‡†‹
•‡…–‹‘ͶͶǤ
Ȉ ‘’—–ƒ–‹‘‘ˆ’”‘ϐ‹–ˆ”‘„—•‹‡••ƒ†’”‘ˆ‡••‹‘‘’”‡•—’–‹˜‡„ƒ•‹•ƒ”‡…‘˜‡”‡†—†‡”•‡…–‹‘•
ͶͶǡͶͶƒ†ͶͶǤ
Ȉ ‡…–‹‘ͶͶŽƒ‹††‘™•’‡…‹ƒŽ’”‘˜‹•‹‘•ˆ‘”…‘’—–‹‰’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ•Š‹’’‹‰„—•‹‡••‹…ƒ•‡‘ˆ
‘Ǧ”‡•‹†‡–•Ǥ
ʹͶͶ Lesson 4 Ȉ EP-TL



ȋThese are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
—Ž–‹’Ž‡Š‘‹…‡—‡•–‹‘•Dz•dz
ͳǤ ”‡Ž‹‹ƒ”›š’‡•‡•—Ȁ•͵ͷǡ“—ƒŽ‹ˆ›‹‰•‘™‘—Ž†„‡†‡†—…–‹„Ž‡‹ǦǦǦǦǦǦǦǦǦǦǦǦǦǦ‡“—ƒŽ‹•–ƒŽŽ‡–•
ƒȌ ‹˜‡
„Ȍ ‡˜‡
…Ȍ ‡
†Ȍ ‡
•™‡”ǣȋƒȌ
ʹǤ Š‡”ƒ–‡‘ˆ†‡’”‡…‹ƒ–‹‘•’‡…‹ϐ‹‡†ˆ‘”‹–ƒ‰‹„Ž‡ƒ••‡–•‹•ǫ
ƒȌ ʹͷΨ
„Ȍ ͵ͲΨ
…Ȍ ͶͲΨ
†Ȍ ͳͷΨ
•™‡”ǣȋƒȌ
͵Ǥ ƒŽƒ”›ǡ‘—•‡–…Ǥ—†‡”•‡…–‹‘ͶͲȋ„Ȍ‹•ƒŽŽ‘™‡†–‘ǣ
ƒȌ ‘”‹‰’ƒ”–‡”
„Ȍ ‘Ǧ™‘”‹‰’ƒ”–‡”
…Ȍ ŽŽ–Š‡’ƒ”–‡”•
†Ȍ ‘‡‘ˆ–Š‡’ƒ”–‡”•
•™‡”ǣȋƒȌ

  



Ȉ ‹”‡…–ƒš‡•ƒ™ƒ†”ƒ…–‹…‡
—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ
Ȉ ‹”‡…–ƒš‡•‡ƒ†›‡…‘‡”™‹–ŠƒšŽƒ‹‰
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
—„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

 

Ȉ …‘‡ƒš…–ǡͳͻ͸ͳǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š
Ȉ …‘‡ƒš—Ž‡•ǡͳͻ͸ʹǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•ǦͷͿͼ͸Ǥƒ•’š
Ȉ ‹”…—Žƒ”•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
 Part IV – Income from Capital
Lesson 4 Gains
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ ƒ’‹–ƒŽ••‡–•
Ȉ Š‡…‘†‹–‹‘•–‘„‡•ƒ–‹•ϐ‹‡†ˆ‘”‹…‘‡–‘„‡…Šƒ”‰‡ƒ„Ž‡
Ȉ ”ƒ•ˆ‡” —†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•
Ȉ Š‘”–‡”ƒ’‹–ƒŽ
Ȉ Š‹…Šƒ••‡–•ƒ”‡…Žƒ••‹ϐ‹‡†ƒ•ƒ’‹–ƒŽ••‡–ǫ

ƒ‹
Ȉ ‘‰‡”ƒ’‹–ƒŽ Ȉ Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ’‹–ƒŽ
ƒ‹•ƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘ƒš

ƒ‹ Ȉ Žƒ••‹ϐ‹…ƒ–‹‘‘ˆƒ’‹–ƒŽ
ƒ‹‹–‘‘‰‡”ƒ†Š‘”–‡”
Ȉ ‘•–‘ˆ…“—‹•‹–‹‘
Ȉ Š‹…Š–”ƒ•ƒ…–‹‘•ƒ”‡‘–”‡‰ƒ”†‡†ƒ•”ƒ•ˆ‡”ǫ
Ȉ ‘•–‘ˆ
’”‘˜‡‡– Ȉ Šƒ–ƒ”‡–Š‡‡š‡’–‹‘•ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆƒ’‹–ƒŽ
ƒ‹•ǫ
Ȉ †‡š‡†‘•–‘ˆ Ȉ Š‡…ƒ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ‡ƒ”‡ˆ‡”‡…‡–‘–Š‡
…“—‹•‹–‹‘ ƒŽ—ƒ–‹‘ˆϐ‹…‡”ǫ
Ȉ †‡š‡†‘•–‘ˆ
’”‘˜‡‡–

Lesson Outline
Ȉ –”‘†—…–‹‘ Ȉ ‘•–‘ˆ’”‘˜‡‡–
Ȉ Šƒ”‰‡ƒ„‹Ž‹–› Ȉ •…‡”–ƒ‹‡–‘ˆ‘•–‹
’‡…‹ϐ‹‡†‹”…—•–ƒ…‡•
Ȉ ƒ’‹–ƒŽ••‡–ȏ‡…–‹‘ʹȋͳͶȌȐ
ȏ‡…–‹‘ͶͻȐ
Ȉ ’ƒ…–‘ˆ‡…–‹‘ͳͳͷ
Ȉ ƒ’‹–ƒŽ‰ƒ‹•‹‡•’‡…–‘ˆ
—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
Ž—’ƒŽ‡ȏ‡…–‹‘ͷͲȐ

ƒ‹•
Ȉ ‡ˆ‡”‡…‡–‘ƒŽ—ƒ–‹‘
Ȉ Š‘”–‡”Ƭ‘‰‡”
ˆϐ‹…‡”ȏ‡…–‹‘ͷͷȐ
ƒ’‹–ƒŽ••‡–•
Ȉ †˜ƒ…‡†‘‡›‡…‡‹˜‡†
Ȉ ”ƒ•ˆ‡”ȏ‡…–‹‘ʹȋͶ͹ȌȐ
ȏ‡…–‹‘ͷͳȐ
Ȉ ‡ƒ”‘ˆŠƒ”‰‡ƒ„‹Ž‹–›ƒ•
Ȉ š‡’–‹‘ˆ”‘ƒ’‹–ƒŽ
Dzƒ’‹–ƒŽ
ƒ‹dz

ƒ‹
Ȉ ƒ’‹–ƒŽ
ƒ‹•
Ȉ ƒšƒ–‡•
‹•–”‹„—–‹‘‘ˆ••‡–•„›
‘’ƒ‹‡•‹‹“—‹†ƒ–‹‘ Ȉ ƒ•‡ƒ™
Ȉ ƒ’‹–ƒŽ
ƒ‹•‘—›„ƒ…‘ˆ Ȉ 
Šƒ”‡•‘”’‡…‹ϐ‹‡†
Ȉ 
‡…—”‹–‹‡•
Ȉ   
Ȉ ‘†‡‘ˆ‘’—–ƒ–‹‘


Ȉ ‘•–‘ˆ…“—‹•‹–‹‘
Ȉ  
246 Lesson 4 Ȉ EP-TL

Regulatory Framework
Sections Income Tax Act, 1961
‡…–‹‘ʹȋͳͶȌ ƒ’‹–ƒŽ••‡–•
‡…–‹‘ʹȋͶʹȌ Š‘”–‡”ƒ’‹–ƒŽ••‡–•
‡…–‹‘ʹȋͶʹȌ Š‘”–‡”ƒ’‹–ƒŽ
ƒ‹•
‡…–‹‘ʹȋͶ͹Ȍ ”ƒ•ˆ‡”
‡…–‹‘Ͷͷ Šƒ”‰‡ƒ„‹Ž‹–›
‡…–‹‘ͶͷȋͷȌ ƒšƒ„‹Ž‹–›‘ˆƒ’‹–ƒŽ
ƒ‹•‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‰”‡‡‡–
‡…–‹‘Ͷ͸ ƒ’‹–ƒŽ
ƒ‹•‘†‹•–”‹„—–‹‘‘ˆ••‡–•„›‘’ƒ‹‡•‹‹“—‹†ƒ–‹‘
‡…–‹‘Ͷ͸ ƒ’‹–ƒŽ
ƒ‹•‘—›ƒ…‘ˆŠƒ”‡•‘”’‡…‹ϐ‹‡†‡…—”‹–‹‡•
‡…–‹‘Ͷͺ ‘†‡‘ˆ‘’—–ƒ–‹‘‘ˆƒ’‹–ƒŽ
ƒ‹•
‡…–‹‘ͷͷ ‘•–‘ˆ’”‘˜‡‡–
‡…–‹‘Ͷͻ •…‡”–ƒ‹‡–‘ˆ‘•–‹’‡…‹ϐ‹‡†‹”…—•–ƒ…‡•
‡…–‹‘ͷͲ ƒ’‹–ƒŽ
ƒ‹•‹”‡•’‡…–‘ˆ‡’”‡…‹ƒ„Ž‡••‡–•
‡…–‹‘ͷͲ ƒ’‹–ƒŽ
ƒ‹•‹”‡•’‡…–‘ˆŽ—’ƒŽ‡
‡…–‹‘ʹȋͶʹȌ ‡ƒ‹‰‘ˆŽ—’ƒŽ‡
‡…–‹‘ͷͲ ‘’—–ƒ–‹‘‘ˆƒ’‹–ƒŽ
ƒ‹‹‡ƒŽ•–ƒ–‡”ƒ•ƒ…–‹‘
‡…–‹‘ͷͲ ƒ’‹–ƒŽ
ƒ‹‘”ƒ•ˆ‡”‘ˆŽ‹•–‡†Šƒ”‡•‹ƒ‘’ƒ›
‡…–‹‘ͷͲ ƒ‹”ƒ”‡–ƒŽ—‡–‘„‡ —ŽŽƒŽ—‡‘ˆ‘•‹†‡”ƒ–‹‘‹‡”–ƒ‹ƒ•‡•
‡…–‹‘ͷͷ ‡ˆ‡”‡…‡–‘ƒŽ—ƒ–‹‘ˆϐ‹…‡”
‡…–‹‘ͷͳ †˜ƒ…‡‘‡›‡…‡‹˜‡†
‡…–‹‘ͷͶ ”‘ϐ‹–‘•ƒŽ‡‘ˆ’”‘’‡”–›—•‡†ˆ‘”‡•‹†‡–‹ƒŽ—”’‘•‡
‡…–‹‘ͷͶ ”ƒ•ˆ‡”‘ˆŽƒ†—•‡†ˆ‘”‰”‹…—Ž–—”ƒŽ’—”’‘•‡•
‡…–‹‘ͷͶ ‘’—Ž•‘”›ƒ…“—‹•‹–‹‘‘ˆŽƒ†•ƒ†„—‹Ž†‹‰•
ƒ’‹–ƒŽ
ƒ‹•š‡’–‹‘•‹…ƒ•‡‘ˆ˜‡•–‡–•ƒ†‡‹’‡…‹ϐ‹‡†
‡…–‹‘ͷͶ
‘†•
‡…–‹‘ͷͶ ƒš‹…‡–‹˜‡•ˆ‘”–ƒ”–Ǧ—’•
ƒ’‹–ƒŽ ‰ƒ‹ ‘ –Š‡ –”ƒ•ˆ‡” ‘ˆ …‡”–ƒ‹ …ƒ’‹–ƒŽ ƒ••‡–• ‘– –‘ „‡
‡…–‹‘ͷͶ
…Šƒ”‰‡†‹ …ƒ•‡‘ˆ‹˜‡•–‡–‹‡•‹†‡–‹ƒŽ‘—•‡
š‡’–‹‘ ‘ˆ …ƒ’‹–ƒŽ ‰ƒ‹ ‘ –”ƒ•ˆ‡” ‘ˆ ƒ••‡–• ‘ˆ •Š‹ˆ–‹‰ ‘ˆ
‡…–‹‘ͷͶ

‹†—•–”‹ƒŽ —†‡”–ƒ‹‰ˆ”‘—”„ƒƒ”‡ƒ–‘ƒ’‡…‹ƒŽ…‘‘‹…‘‡
ƒ’‹–ƒŽ
ƒ‹‘”ƒ•ˆ‡”‘ˆ‡•‹†‡–‹ƒŽ”‘’‡”–›ȋƒŠ‘—•‡‘”ƒ’Ž‘–‘ˆ
‡…–‹‘ͷͶ

Žƒ†Ȍ
š–‡•‹‘ ‘ˆ ‹‡ ˆ‘” …“—‹”‹‰ ‡™ ••‡– ‘” ‡’‘•‹–‹‰ ‘”
‡…–‹‘ͷͶ
˜‡•–‹‰ ‘—–‘ˆƒ’‹–ƒŽ
ƒ‹
‡…–‹‘ͳͳʹ ƒš‘Ž‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹•‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‡…—”‹–‹‡•
 Lesson 4 Ȉ Part IV - Income from Capital Gains 247

INTRODUCTION
Š‡’”‘˜‹•‹‘•ˆ‘”…‘’—–ƒ–‹‘‘ˆ…‘‡ˆ”‘ƒ’‹–ƒŽ
ƒ‹•ƒ”‡…‘˜‡”‡†—†‡”•‡…–‹‘•Ͷͷ–‘ͷͷ‘ˆ–Š‡…‘‡ƒš
…–ǡͳͻ͸ͳǤ‡…–‹‘ʹȋͳͶȌ†‡ϐ‹‡•–Š‡–‡”…ƒ’‹–ƒŽ‰ƒ‹ƒ†•‡…–‹‘Ͷͷ‹•…Šƒ”‰‹‰•‡…–‹‘™Š‹…ŠŽƒ›•†‘™–Š‡„ƒ•‹•
‘ˆ…Šƒ”‰‡ˆ‘”–ƒšƒ„‹Ž‹–›‘ˆƒ’‹–ƒŽ
ƒ‹Ȁ‘••ƒ”‹•‡•‘–”ƒ•ˆ‡”‘ˆƒ’‹–ƒŽ••‡–Ǥ
ƒšƒ„‹Ž‹–›‘ˆƒ’‹–ƒŽ
ƒ‹†‡’‡†•—’‘–Š‡ƒ–—”‡‘ˆƒ’‹–ƒŽ
ƒ‹ǡ‹Ǥ‡Ǥǡ•Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹‘”Ž‘‰–‡”…ƒ’‹–ƒŽ
‰ƒ‹ǤŠ‡–›’‡‘ˆ…ƒ’‹–ƒŽ‰ƒ‹†‡’‡†•—’‘–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡…ƒ’‹–ƒŽƒ••‡–‹•Š‡Ž†ǤŠ‡–ƒšƒ„‹Ž‹–›‘ˆ…ƒ’‹–ƒŽ
‰ƒ‹•ŠƒŽŽ•ƒ–‹•ˆ›–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
Ȉ Š‡”‡•Š‘—Ž†„‡ƒ’‹–ƒŽ••‡–
Ȉ Š‡ƒ’‹–ƒŽ••‡–‹•–”ƒ•ˆ‡””‡†„›–Š‡••‡••‡‡
Ȉ —…Š”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡†—”‹‰–Š‡”‡˜‹‘—•‡ƒ”
‘‰‹˜‡”‡Ž‹‡ˆ–‘–Š‡ƒ••‡••‡‡ǡ–Š‡…‘…‡’–‘ˆ‡š‡’–‹‘‹–”‘†—…‡†—†‡”•‡…–‹‘ͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶ ǡ
ͷͶ
ǡͷͶ
ǡͷͶ
ƒ†ͷͶǤ
Format for Computation of Income under the Head “Capital Gains”
Particulars Short Term Capital Gain Long Term Capital Gain
Amount Amount
(Rs.) (Rs.) (Rs.) (Rs.)
—ŽŽ ˜ƒŽ—‡ ‘ˆ …‘•‹†‡”ƒ–‹‘ ”‡…‡‹˜‡† ‘” šššš ššš
ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ”ƒ•ˆ‡”
Less: š’‡†‹–—”‡ ‹…—””‡† ™Š‘ŽŽ› ƒ†
‡š…Ž—•‹˜‡Ž› ‹ …‘‡…–‹‘ ™‹–Š •—…Š
ȋššššȌ ȋšššȌ
–”ƒ•ˆ‡”ȋˆ‘”‡Ǥ‰Ǥǡ”‘‡”ƒ‰‡‘ƒŽ‡Ȍ
ȋ‘–‡ǣ ‡†—…–‹‘ ‘ ƒ……‘—– ‘ˆ 
’ƒ‹†™‹ŽŽ‘–„‡ƒŽŽ‘™‡†Ȍ
‡–ƒŽ‡‘•‹†‡”ƒ–‹‘ ššš ššš
‡••ǣ ‘•–‘ˆ…“—‹•‹–‹‘ ȋšššȌ †‡š‡†‘•–‘ˆ ššš
‘•–‘ˆ’”‘˜‡‡– …“—‹•‹–‹‘
ȋšššȌ
†‡š‡†‘•–‘ˆ ššš
’”‘˜‡‡–
Š‘”–‡”ƒ’‹–ƒŽ ššš ‘‰‡”ƒ’‹–ƒŽ
ƒ‹ ššš

ƒ‹ š‡’–‹‘—†‡”
•‡…–‹‘• ͷͶȀͷͶȀͷͶȀ ȋšššȌ
š‡’–‹‘—†‡”
•‡…–‹‘•ͷͶȀͷͶ ȋšššȌ ͷͶȀͷͶȀͷͶ
Š‘”–Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹ȋ
Ȍ ššš ‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹• ššš
ȋ
Ȍ

CHARGEABILITY [SECTION 45]

‡…–‹‘•Ͷͷ–‘ͷͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ†‡ƒŽ™‹–Šƒ’‹–ƒŽ
ƒ‹•Ǥ
‡…–‹‘Ͷͷ‘ˆ–Š‡…–ǡ’”‘˜‹†‡•–Šƒ–ƒ›’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‡ˆˆ‡…–‡†‹–Š‡
’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽǡ•ƒ˜‡ƒ•‘–Š‡”™‹•‡’”‘˜‹†‡†‹˜ƒ”‹‘—••‡…–‹‘•‘ˆ‡…–‹‘ͷͶǡ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”
–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ
ƒ‹•dzƒ†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡–”ƒ•ˆ‡”–‘‘’Žƒ…‡Ǥ
‘—„–•ƒ›ƒ”‹•‡ƒ•–‘™Š‡–Š‡”Dzƒ’‹–ƒŽ
ƒ‹•dz„‡‹‰ƒ…ƒ’‹–ƒŽ”‡…‡‹’–…ƒ„‡„”‘—‰Š––‘–ƒšƒ•‹…‘‡Ǥ–ƒ›„‡
‘–‡†–Šƒ––Š‡‘”†‹ƒ”›ƒ……‘—–‹‰…ƒ‘•‘ˆ†‹•–‹…–‹‘•„‡–™‡‡ƒ…ƒ’‹–ƒŽ”‡…‡‹’–ƒ†ƒ”‡˜‡—‡”‡…‡‹’–ƒ”‡‘–
ƒŽ™ƒ›• ˆ‘ŽŽ‘™‡† —†‡” –Š‡ …‘‡Ǧ–ƒš …–Ǥ ‡…–‹‘ ʹȋʹͶȌȋ˜‹Ȍ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …– •’‡…‹ϐ‹…ƒŽŽ› ’”‘˜‹†‡• –Šƒ–
Dz…‘‡dz‹…Ž—†‡•Dzƒ›…ƒ’‹–ƒŽ‰ƒ‹•…Šƒ”‰‡ƒ„Ž‡—†‡”‡…–‹‘ͶͷȋͳȌdzǤ–ƒ›‘–„‡‘—–‘ˆ’Žƒ…‡–‘‡–‹‘Š‡”‡
–Šƒ–‹–Š‡ƒ„•‡…‡‘ˆƒ•’‡…‹ϐ‹…’”‘˜‹•‹‘‹‡…–‹‘ʹȋʹͶȌ…ƒ’‹–ƒŽ‰ƒ‹•Šƒ˜‡‘Ž‘‰‹…–‘„‡–ƒš‡†ƒ•‹…‘‡ǤŠ‡
 248 Lesson 4 Ȉ EP-TL

…‘•–‹–—–‹‘ƒŽ˜ƒŽ‹†‹–›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–”‡Žƒ–‹‰–‘…ƒ’‹–ƒŽ‰ƒ‹•™ƒ•…ŠƒŽŽ‡‰‡†‹ƒ˜‹Šƒ†”ƒƒˆƒ–ŽƒŽ
˜Ǥ ǤǤǤ ȋͳͻͷͷȌǤ Š‡ —’”‡‡ ‘—”– ™Š‹Ž‡ —’Š‘Ž†‹‰ –Š‡ …‘’‡–‡…‡ ‘ˆ ’ƒ”Ž‹ƒ‡– ‹ Ž‡‰‹•Žƒ–‹‰ ™‹–Š ”‡‰ƒ”† –‘
…ƒ’‹–ƒŽ‰ƒ‹•ƒ•ƒ’ƒ”–‘ˆ‹…‘‡ǡ‘„•‡”˜‡†–Šƒ––Š‡–‡”‹…‘‡•Š‘—Ž†„‡‰‹˜‡–Š‡™‹†‡•–…‘‘–ƒ–‹‘•‘ƒ•–‘
‹…Ž—†‡ …ƒ’‹–ƒŽ ‰ƒ‹• ™‹–Š‹ ‹–• •…‘’‡Ǥ ‘™‡˜‡”ǡ ƒŽŽ …ƒ’‹–ƒŽ ’”‘ϐ‹– †‘ ‘– ‡…‡••ƒ”‹Ž› …‘•–‹–—–‡ …ƒ’‹–ƒŽ ‰ƒ‹•Ǥ ‘”
‹•–ƒ…‡ǡ’”‘ϐ‹–‘”‡Ǧ‹••—‡‘ˆˆ‘”ˆ‡‹–‡†•Šƒ”‡•ǡ’”‘ϐ‹–‘”‡†‡’–‹‘‘ˆ†‡„‡–—”‡•ǡ’”‡‹—‘‹••—‡‘ˆ•Šƒ”‡•ǡƒ”‡
…ƒ’‹–ƒŽ’”‘ϐ‹–ƒ†‘–…ƒ’‹–ƒŽ‰ƒ‹•ǡŠ‡…‡ǡ‘–Ž‹ƒ„Ž‡–‘–ƒšǤ
Š‡”‡“—‹•‹–‡•‘ˆƒ…Šƒ”‰‡–‘‹…‘‡Ǧ–ƒšǡ‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•—†‡”‡…–‹‘ͶͷȋͳȌƒ”‡ǣ
ȋ‹Ȍ Š‡”‡—•–„‡ƒƒ’‹–ƒŽ••‡–Ǥ
ȋ‹‹Ȍ Š‡…ƒ’‹–ƒŽƒ••‡–—•–Šƒ˜‡„‡‡–”ƒ•ˆ‡””‡†Ǥ
ȋ‹‹‹Ȍ Š‡–”ƒ•ˆ‡”—•–Šƒ˜‡„‡‡‡ˆˆ‡…–‡†‹–Š‡”‡˜‹‘—•‡ƒ”Ǥ
ȋ‹˜Ȍ Š‡”‡—•–„‡ƒ‰ƒ‹ƒ”‹•‹‰‘•—…Š–”ƒ•ˆ‡”‘ˆƒƒ’‹–ƒŽ••‡–Ǥ
—…Š…ƒ’‹–ƒŽ‰ƒ‹•Š‘—Ž†‘–„‡‡š‡’–—†‡”‡…–‹‘•ͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶ ǡͷͶ
ǡ‘”ͷͶ

Š‡•‡”‡“—‹•‹–‡•ƒ”‡„”‹‡ϐŽ›ƒƒŽ›•‡†„‡Ž‘™Ǥ

CAPITAL ASSETS [SECTION 2(14)]

Capital Asset means

any securities held by a Foreign

property of any kind held But does not
Institutional Investor which has
by an assessee include
invested in such securities

whether or not in accordance with the

connected with his regulations made under
business or profession the SEBI Act, 1992

ȋ‹Ȍ ƒ›•–‘…Ǧ‹Ǧ–”ƒ†‡ȋ‘–Š‡”–Šƒ•‡…—”‹–‹‡•Š‡Ž†„› ‡–‹‘‡†‹…Žƒ—•‡ȋ„Ȍƒ„‘˜‡Ȍǡ…‘•—ƒ„Ž‡•–‘”‡•‘”

”ƒ™Ǧƒ–‡”‹ƒŽ•Š‡Ž†ˆ‘”–Š‡’—”’‘•‡•‘ˆŠ‹•„—•‹‡••‘”’”‘ˆ‡••‹‘Ǣ
 Š‡ ‡š…Ž—•‹‘ ‘ˆ •–‘…Ǧ‹Ǧ–”ƒ†‡ ˆ”‘ –Š‡ †‡ϐ‹‹–‹‘ ‘ˆ …ƒ’‹–ƒŽ ƒ••‡– ‹• ‘Ž› ‹ ”‡•’‡…– ‘ˆ •—„Ǧ…Žƒ—•‡ ȋƒȌ
ƒ„‘˜‡ƒ†‘–•—„Ǧ…Žƒ—•‡ȋ„ȌǤŠ‹•‹’Ž‹‡•–Šƒ–‡˜‡‹ˆ–Š‡ƒ–—”‡‘ˆ•—…Š•‡…—”‹–›‹–Š‡Šƒ†•‘ˆ–Š‡
‘”‡‹‰‘”–ˆ‘Ž‹‘˜‡•–‘”‹••–‘…‹–”ƒ†‡ǡ–Š‡•ƒ‡™‘—Ž†„‡–”‡ƒ–‡†ƒ•ƒ…ƒ’‹–ƒŽƒ••‡–ƒ†–Š‡’”‘ϐ‹–‘
–”ƒ•ˆ‡”™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•…ƒ’‹–ƒŽ‰ƒ‹•Ǥ
ȋ‹‹Ȍ ’‡”•‘ƒŽ ‡ˆˆ‡…–• –Šƒ– ‹• –‘ •ƒ›ǡ ‘˜ƒ„Ž‡ ’”‘’‡”–› ȋ‹…Ž—†‹‰ ™‡ƒ”‹‰ ƒ’’ƒ”‡Ž ƒ† ˆ—”‹–—”‡Ȍ Š‡Ž† ˆ‘”
’‡”•‘ƒŽ—•‡„›–Š‡ƒ••‡••‡‡‘”ƒ›‡„‡”‘ˆŠ‹•ˆƒ‹Ž›†‡’‡†‡–‘Š‹„—–‡š…Ž—†‡•
ȋƒȌ Œ‡™‡ŽŽ‡”›Ǣ
ȋ„Ȍ ƒ”…Šƒ‡‘Ž‘‰‹…ƒŽ…‘ŽŽ‡…–‹‘•Ǣ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 249

ȋ…Ȍ †”ƒ™‹‰•Ǣ
ȋ†Ȍ ’ƒ‹–‹‰•Ǣ
ȋ‡Ȍ •…—Ž’–—”‡•Ǣ‘”
ȋˆȌ ƒ›™‘”‘ˆƒ”–
 ‘”–Š‹•’—”’‘•‡ǡ–Š‡‡š’”‡••‹‘ǮŒ‡™‡ŽŽ‡”›ǯ‹…Ž—†‡•–Š‡ˆ‘ŽŽ‘™‹‰ǣ

ȋͳȌ ”ƒ‡–•ƒ†‡‘ˆ‰‘Ž†ǡ•‹Ž˜‡”ǡ’Žƒ–‹—‘”ƒ›‘–Š‡”’”‡…‹‘—•‡–ƒŽ‘”ƒ›ƒŽŽ‘›…‘–ƒ‹‹‰‘‡
‘”‘”‡‘ˆ•—…Š’”‡…‹‘—•‡–ƒŽ•ǡ™Š‡–Š‡”‘”‘–…‘–ƒ‹‹‰ƒ›’”‡…‹‘—•‘”•‡‹Ǧ’”‡…‹‘—••–‘‡•
ƒ†™Š‡–Š‡”‘”‘–™‘”‡†‘”•‡™‹–‘ƒ›™‡ƒ”‹‰ƒ’’ƒ”‡ŽǢ
ȋʹȌ ”‡…‹‘—•‘”•‡‹Ǧ’”‡…‹‘—••–‘‡•ǡ™Š‡–Š‡”‘”‘–•‡–‹ƒ›ˆ—”‹–—”‡ǡ—–‡•‹Ž‘”‘–Š‡”ƒ”–‹…Ž‡‘”
™‘”‡†‘”•‡™‹–‘ƒ›™‡ƒ”‹‰ƒ’’ƒ”‡ŽǤ

ȋ‹‹‹Ȍ —”ƒŽƒ‰”‹…—Ž–—”ƒŽŽƒ†‡š…Ž—†‡•ǣ
ȋƒȌ ƒ›ƒ”‡ƒ™‹–Š‹–Š‡Œ—”‹•†‹…–‹‘‘ˆƒ—‹…‹’ƒŽ‹–›‘”ƒ…ƒ–‘‡–„‘ƒ”†ƒ†™Š‹…ŠŠƒ•ƒ’‘’—Žƒ–‹‘
‘ˆ‘–Ž‡••–Šƒ–‡–Š‘—•ƒ†Ǣ‘”
ȋ„Ȍ ƒ› ƒ”‡ƒ ™‹–Š‹ –Š‡ †‹•–ƒ…‡ǡ ‡ƒ•—”‡† ƒ‡”‹ƒŽŽ› ˆ”‘ –Š‡ Œ—”‹•†‹…–‹‘ ‘ˆ ƒ —‹…‹’ƒŽ‹–› ‘” ƒ
…ƒ–‘‡–„‘ƒ”†Ȃ
Ǥ ‘–„‡‹‰‘”‡–Šƒ–™‘‹Ž‘‡–”‡•ǡˆ”‘–Š‡Ž‘…ƒŽŽ‹‹–•‘ˆƒ›—‹…‹’ƒŽ‹–›‘”…ƒ–‘‡–
„‘ƒ”†ƒ†™Š‹…ŠŠƒ•ƒ’‘’—Žƒ–‹‘‘ˆ‘”‡–Šƒ–‡–Š‘—•ƒ†„—–‘–‡š…‡‡†‹‰‘‡ŽƒŠ
Ǥ ‘–„‡‹‰‘”‡–Šƒ•‹š‹Ž‘‡–”‡•ǡˆ”‘–Š‡Ž‘…ƒŽŽ‹‹–•‘ˆƒ›—‹…‹’ƒŽ‹–›‘”…ƒ–‘‡–
„‘ƒ”†ƒ†™Š‹…ŠŠƒ•ƒ’‘’—Žƒ–‹‘‘ˆ‘”‡–Šƒ‘‡ŽƒŠ„—–‘–‡š…‡‡†‹‰–‡ŽƒŠ
Ǥ ‘–„‡‹‰‘”‡–Šƒ‡‹‰Š–‹Ž‘‡–”‡•ǡˆ”‘–Š‡Ž‘…ƒŽŽ‹‹–•‘ˆƒ›—‹…‹’ƒŽ‹–›‘”…ƒ–‘‡–
„‘ƒ”†ƒ†™Š‹…ŠŠƒ•ƒ’‘’—Žƒ–‹‘‘ˆ‘”‡–Šƒ–‡ŽƒŠǤ

ȋ‹˜Ȍ ͸’‡”…‡–
‘Ž†‘†•ǡͳͻ͹͹‘”͹’‡”…‡–
‘Ž†‘†•ǡͳͻͺͲ‘”ƒ–‹‘ƒŽ‡ˆ‡…‡
‘Ž†‘†•ǡͳͻͺͲ‹••—‡†
„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
ȋ˜Ȍ ’‡…‹ƒŽ‡ƒ”‡”‘†•ͳͻͻͳ‹••—‡†„›–Š‡‡–”ƒŽ
‘˜–Ǥ
ȋ˜‹Ȍ
‘Ž†‡’‘•‹–‘†•‹••—‡†—†‡”–Š‡
‘Ž†‡’‘•‹–…Š‡‡ǡͳͻͻͻ‘”†‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡•‹••—‡†—†‡”–Š‡

‘Ž†‘‡–‹•ƒ–‹‘…Š‡‡ǡʹͲͳͷ‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ

Š‡—’”‡‡‘—”–‹–Š‡…ƒ•‡‘ˆ‘†ƒˆ‘‡–‡”ƒ–‹‘ƒŽ‘Ž†‹‰•Ǥ˜•Ǥ‹‘‘ˆ†‹ƒȏʹͲͳʹȐŠ‡Ž†–Šƒ–‹ϐŽ—‡…‡Ȁ

’‡”•—ƒ•‹‘‘ˆƒ’ƒ”‡–…‘’ƒ›‘˜‡”‹–••—„•‹†‹ƒ”›…‘—Ž†‘–„‡…‘•–”—‡†ƒ•ƒ”‹‰Š–‹–Š‡Ž‡‰ƒŽ•‡•‡Ǥ
‘•—’‡”•‡†‡–Š‹•”—Ž‹‰™‹–Š”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…–ˆ”‘ͳ•–’”‹Žͳͻ͸ʹǡƒš’Žƒƒ–‹‘Šƒ•„‡‡‹•‡”–‡†–‘…Žƒ”‹ˆ›
–Šƒ– Dz’”‘’‡”–›dz ‹…Ž—†‡• ƒ† •ŠƒŽŽ „‡ †‡‡‡† –‘ Šƒ˜‡ ƒŽ™ƒ›• ‹…Ž—†‡† ƒ› ”‹‰Š–• ‹ ‘” ‹ ”‡Žƒ–‹‘ –‘ ƒ †‹ƒ
…‘’ƒ›ǡ‹…Ž—†‹‰”‹‰Š–•‘ˆƒƒ‰‡‡–‘”…‘–”‘Ž‘”ƒ›‘–Š‡””‹‰Š–•™Šƒ–•‘‡˜‡”Ǥ
”‘˜‹•‹‘•‘ˆŽ‘…ƒŽŽƒ†Žƒ™••Š‘—Ž†„‡…‘•‹†‡”‡†™Š‹Ž‡†‡–‡”‹‹‰–Š‡Žƒ†ƒ•ƒ‰”‹…—Ž–—”ƒŽŽƒ†ǤŠ‡‘—”–Š‡Ž†
–Šƒ–‹ˆƒ…–‹˜‹–‹‡•’‡”ˆ‘”‡†„›ƒ••‡••‡‡‘–Š‡Žƒ†ƒ”‡”‡…‘‰‹•‡†ƒ•Ǯƒ‰”‹…—Ž–—”ƒŽǯƒ…–‹˜‹–‹‡•—†‡”–Š‡‘…ƒŽŽƒ†
Žƒ™ǡ–Šƒ–Š‡Žƒ†…ƒ„‡–”‡ƒ–‡†ƒ•‰”‹…—Ž–—”ƒŽŽƒ†ǡ‡˜‡‹ˆƒ…–—ƒŽ‰”‘™‹‰†‘‡•‘––ƒ‡’Žƒ…‡Ǥ [Shankar Dalal &
Others v/s CIT (Bombay High Court)]
IMPACT OF SECTION 115BAC UNDER THE HEAD CAPITAL GAINS
‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”†‹˜‹†—ƒŽ•ƒ† •—Ȁ•ͳͳͷ‘ˆ–Š‡…‘‡
ƒš…–ǡͳͻ͸ͳ™Ǥ‡ǤˆǤʹͲʹͳǦʹʹ–‘’”‘˜‹†‡ˆ‘”…‘…‡••‹‘ƒŽ”ƒ–‡‘ˆŽƒ„ƒ–‡•–‘„‡ƒ’’Ž‹‡†‘‘–ƒŽ…‘‡…ƒŽ…—Ǧ
Žƒ–‡†™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ
 250 Lesson 4 Ȉ EP-TL

‡…‡ǡˆ”‘ʹͲʹͳǦʹʹ‘” ʹͲʹͲǦʹͳǡ–Š‡”‡ƒ”‡–™‘‘’‡”ƒ–‹˜‡–ƒš•›•–‡•ǣ
ͳǤ ‡‹•–Š‡š‹•–‹‰–ƒš•›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš
”ƒ–‡•ƒ”‡ƒ•’‡”–Š‡Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
ʹǤ Š‡•‡…‘†‘‡‹••‡…–‹‘ͳͳͷ™Š‹…Š‹•ƒ’–‹‘ƒŽƒš›•–‡ƒ†—†‡”™Š‹…Šƒ›†‡†—…–‹‘•ƒ†
‡š‡’–‹‘•Šƒ˜‡‘–„‡‡ƒŽŽ‘™‡†„—–Ž‘™‡”•Žƒ„–ƒš”ƒ–‡•ƒ”‡’”‘˜‹†‡†‹•‡…–‹‘ͳͳͷ‹–•‡ŽˆǤ
Individual and HUF opting for concessional tax regime under section 115BAC: Š‡†‡†—…–‹‘—†‡”Šƒ’–‡”
Ǧ‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͺͲ‘”•‡…–‹‘ͺͲ Ǣ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡†‹˜‹†—ƒŽ
ƒ† ‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ
†‡”–Š‡‡™–ƒš•›•–‡ǡƒ›†‡†—…–‹‘•Ƭ‡š‡’–‹‘•ƒ”‡‘–ƒŽŽ‘™‡†„—–—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•ǡƒŽŽ
‡š‡’–‹‘•ƒ††‡†—…–‹‘•ƒ”‡ƒŽŽ‘™‡†‡˜‡—†‡”–Š‡‡™–ƒš•›•–‡Ǥ‘ǡ–Š‡…‘’—–ƒ–‹‘‘ˆƒ’‹–ƒŽ
ƒ‹…‘‡
™‹ŽŽ‘–„‡‡ˆˆ‡…–‡†—†‡”–Š‡‡™–ƒš•›•–‡Ǥ
SHORT-TERM & LONG-TERM CAPITAL ASSETS
Ȉ ‡…–‹‘ʹȋͶʹȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ†‡ϐ‹‡••Š‘”––‡”…ƒ’‹–ƒŽƒ••‡–ƒ•ƒ…ƒ’‹–ƒŽƒ••‡–Š‡Ž†„›–Š‡
ƒ••‡••‡‡ˆ‘”‘–‘”‡–Šƒ͵͸‘–Š•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ǤŠ‡”‡ˆ‘”‡ǡƒƒ••‡–™Š‹…Š
‹•Š‡Ž†„›–Š‡ƒ••‡••‡‡ˆ‘”’‡”‹‘†‘ˆ‘”‡–Šƒ͵͸‘–Š•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”‹•ƒ
Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–Ǥ
Ȉ ‘™‡˜‡”ǡƒ•‡…—”‹–›ȋ‘–Š‡”–Šƒƒ—‹–ȌŽ‹•–‡†‹ƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡‘”ƒ—‹–‘ˆƒ‡“—‹–›‘”‹‡–‡†
ˆ—†ǡ‘”‘ˆ‘”ƒ‡”‘Ǧ‘—’‘‘†ǡ™‹ŽŽ„‡…‘•‹†‡”‡†ƒ•ƒŽ‘‰Ǧ–‡”ƒ••‡–‹ˆ‹–‹•Š‡Ž†ˆ‘”ƒ’‡”‹‘†‘ˆ‘”‡
–Šƒͳʹ‘–Š•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”Ǥ
Ȉ •Šƒ”‡‘ˆƒ…‘’ƒ›‘–„‡‹‰ƒ•Šƒ”‡™Š‹…Š‹•Ž‹•–‡†‘ƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡‹†‹ƒ‘”ƒ‹‘˜ƒ„Ž‡
’”‘’‡”–›ǡ„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡ™‘—Ž†„‡–”‡ƒ–‡†ƒ•ƒ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–‹ˆ‹–™ƒ•Š‡Ž†„›ƒ
ƒ••‡••‡‡ˆ‘”‘–‘”‡–ŠƒʹͶ‘–Š•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ‹–•–”ƒ•ˆ‡”ǤŠ—•ǡ–Š‡’‡”‹‘†‘ˆ
Š‘Ž†‹‰‘ˆ—Ž‹•–‡†•Šƒ”‡•‘”ƒ‹‘˜ƒ„Ž‡’”‘’‡”–›ǡ„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡˆ‘”„‡‹‰–”‡ƒ–‡†ƒ•ƒ
Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–™‘—Ž†„‡Dz‘”‡–ŠƒʹͶ‘–Š•dz‹•–‡ƒ†‘ˆDz‘”‡–Šƒ͵͸‘–Š•dzǤ
Ȉ ••‡–• ‘–Š‡” –Šƒ •Š‘”–Ǧ–‡” …ƒ’‹–ƒŽ ƒ••‡–• ƒ”‡ ‘™ ƒ• ǮŽ‘‰Ǧ–‡” …ƒ’‹–ƒŽ ƒ••‡–•ǯ ƒ† –Š‡ ‰ƒ‹• ƒ”‹•‹‰
–Š‡”‡ˆ”‘ƒ”‡‘™ƒ•ǮŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ǯǤ
Period of Holding

ǡ‹ˆŠ‡Ž†ˆ‘”ζͳʹ‘–Š Ȉ ‡…—”‹–›ȋ‘–Š‡”–Šƒ—‹–ȌŽ‹•–‡†‹ƒ”‡…‘‰‹œ‡†•–‘…‡š…Šƒ‰‡
ǡ‹ˆŠ‡Ž†ˆ‘”> 12 months
ǡ‹ˆŠ‡Ž†ˆ‘”ζʹͶ‘–Š
ǡ‹ˆŠ‡Ž†ˆ‘”> 24 months
ǡ‹ˆŠ‡Ž†ˆ‘”ζ͵͸‘–Š
ǡ‹ˆŠ‡Ž†ˆ‘”ε͵͸‘–Š•
Ȉ ‹–‘ˆ‡“—‹–›‘”‹‡–‡†ˆ—†Ȁ—‹–‘ˆ
Ȉ ‡”‘‘—’‘„‘†
Ȉ Ž‹•–‡†•Šƒ”‡•
Ȉ ƒ†‘”„—‹Ž†‹‰‘”„‘–Š
Ȉ ‹–‘ˆ†‡„–‘”‹‡–‡†ˆ—†
Ȉ Ž‹•–‡†•‡…—”‹–‹‡•‘–Š‡”–Šƒ•Šƒ”‡•
Ȉ –Š‡”ƒ’‹–ƒŽ••‡–•

†‡–‡”‹‹‰–Š‡’‡”‹‘†ˆ‘”™Š‹…Šƒ…ƒ’‹–ƒŽƒ••‡–‹•Š‡Ž†„›ƒƒ••‡••‡‡ǡ–Š‡ˆ‘ŽŽ‘™‹‰’‘‹–•—•–„‡‘–‡†ǣ
ȋ‹Ȍ –Š‡…ƒ•‡‘ˆshares held in a company in liquidationǡ–Š‡’‡”‹‘†•—„•‡“—‡––‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡
…‘’ƒ›‰‘‡•‹–‘Ž‹“—‹†ƒ–‹‘•ŠƒŽŽ„‡‡š…Ž—†‡†Ǣ
ȋ‹‹Ȍ …ƒ•‡–Š‡asset becomes the property of the assessee —†‡”–Š‡…‹”…—•–ƒ…‡•‡–‹‘‡†‹‡…–‹‘ͶͻȋͳȌǦ
†‹•…—••‡†Žƒ–‡”‹–Š‹•Ž‡••‘Ǧ–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡ƒ••‡–™ƒ•Š‡Ž†„›–Š‡’”‡˜‹‘—•‘™‡”•ŠƒŽŽ„‡‹…Ž—†‡†Ǣ
ȋ‹‹‹Ȍ –Š‡…ƒ•‡‘ˆ–Š‡•Šƒ”‡•‹ƒ†‹ƒ‘’ƒ›™Š‹…Š„‡…‘‡–Š‡’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡‹ƒ scheme of
amalgamationǡ–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡•Šƒ”‡•‹–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›™‡”‡Š‡Ž†„›–Š‡ƒ••‡••‡‡
•ŠƒŽŽ„‡‹…Ž—†‡†Ǣ
ȋ‹˜Ȍ –Š‡…ƒ•‡‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰a share or any other security subscribed to by the assessee on the
basis of his right –‘•—„•…”‹„‡–‘•—…Šϐ‹ƒ…‹ƒŽƒ••‡–‘”•—„•…”‹„‡†–‘„›the person in whose favour
the assessee has renounced his ”‹‰Š––‘•—„•…”‹„‡–‘•—…Šϐ‹ƒ…‹ƒŽƒ••‡–ǡ–Š‡’‡”‹‘†•ŠƒŽŽ„‡”‡…‘‡†
ˆ”‘–Š‡†ƒ–‡‘ˆƒŽŽ‘–‡–‘ˆ•—…Šϐ‹ƒ…‹ƒŽƒ••‡–Ǣ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 251

ȋ˜Ȍ –Š‡…ƒ•‡‘ˆƒ…ƒ’‹–ƒŽƒ••‡–•ǡ„‡‹‰–Š‡right to subscribe –‘ƒ›ϐ‹ƒ…‹ƒŽƒ••‡–ǡ™Š‹…Š‹•”‡‘—…‡†‹

ˆƒ˜‘—”‘ˆƒ›‘–Š‡”’‡”•‘ǡ–Š‡’‡”‹‘†•ŠƒŽŽ„‡”‡…‘‡†ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡‘ˆˆ‡”‘ˆ•—…Š”‹‰Š–„›–Š‡…‘’ƒ›
‘”‹•–‹–—–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ‹‰•—…Š‘ˆˆ‡”Ǣ
ȋ˜‹Ȍ –Š‡…ƒ•‡‘ˆƒcapital ƒ••‡–ǡ„‡‹‰ƒϐ‹ƒ…‹ƒŽƒ••‡–ǡƒŽŽ‘––‡†™‹–Š‘—–ƒ›’ƒ›‡–ƒ†on the basis of
Š‘Ž†‹‰‘ˆƒ›‘–Š‡”ϐ‹ƒ…‹ƒŽƒ••‡–ǡ–Š‡’‡”‹‘†•ŠƒŽŽ„‡”‡…‘‡†ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡ƒŽŽ‘–‡–‘ˆ•—…Š
ϐ‹ƒ…‹ƒŽƒ••‡–Ǣ
ȋ˜‹‹Ȍ –Š‡…ƒ•‡‘ˆƒcapital asset, being a share or shares in an Indian company, which becomes the property
of the assessee in consideration of a demergerǡ–Š‡”‡•ŠƒŽŽ„‡‹…Ž—†‡†–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡•Šƒ”‡‘”
•Šƒ”‡•Š‡Ž†‹–Š‡†‡‡”‰‡†…‘’ƒ›™‡”‡Š‡Ž†„›–Š‡ƒ••‡••‡‡Ǣ
ȋ˜‹‹‹Ȍ –Š‡…ƒ•‡‘ˆƒcapital asset, being trading or clearing rights of a recognized stock exchange in India
acquired by a person pursuant to demutualisation or corporatisation of the recognized stock exchange
in India as referred to in Clause (xiii) of Section 47, –Š‡”‡ •ŠƒŽŽ „‡ ‹…Ž—†‡† –Š‡ ’‡”‹‘† ˆ‘” ™Š‹…Š –Š‡
’‡”•‘™ƒ•ƒ‡„‡”‘ˆ–Š‡”‡…‘‰‹œ‡†•–‘…‡š…Šƒ‰‡‹†‹ƒ‹‡†‹ƒ–‡Ž›’”‹‘”–‘•—…Š†‡—–—ƒŽ‹•ƒ–‹‘
‘”…‘”’‘”ƒ–‹•ƒ–‹‘Ǣ
ȋ˜‹‹‹ƒȌ –Š‡ …ƒ•‡ ‘ˆ ƒ capital asset, being equity share or shares in a company allotted pursuant to
demutualisation or corporatisation of a recognised stock exchange in India as referred to in Clause
(xiii) of Section 47,–Š‡”‡•ŠƒŽŽ„‡‹…Ž—†‡†–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡’‡”•‘™ƒ•ƒ‡„‡”‘ˆ–Š‡”‡…‘‰‹œ‡†
•–‘…‡š…Šƒ‰‡‹†‹ƒ‹‡†‹ƒ–‡Ž›’”‹‘”–‘•—…Š†‡—–—ƒŽ‹•ƒ–‹‘‘”…‘”’‘”ƒ–‹•ƒ–‹‘Ǣ
Š‡”‡’”‡ˆ‡”‡…‡•Šƒ”‡•ƒ”‡…‘˜‡”–‡†‹–‘‡“—‹–›•Šƒ”‡•ǡ–Š‡’‡”‹‘†‘ˆŠ‘Ž†‹‰•ŠƒŽŽ„‡…‘•‹†‡”‡†ˆ”‘–Š‡†ƒ–‡
‘ˆƒ…“—‹•‹–‹‘‘ˆ’”‡ˆ‡”‡…‡•Šƒ”‡•Ǥ‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ’”‡ˆ‡”‡…‡•Šƒ”‡••ŠƒŽŽ„‡–ƒ‡ƒ•…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ
‡“—‹–›•Šƒ”‡•‹–Š‡Šƒ†•‘ˆƒ••‡••‡‡Ǥ
Š‡”‡—‹–•ƒ”‡Š‡Ž†„›ƒƒ••‡••‡‡‹–Š‡…‘•‘Ž‹†ƒ–‹‰’Žƒ‘ˆƒ—–—ƒŽˆ—†•…Š‡‡ǡƒ†‡‹…‘•‹†‡”ƒ–‹‘‘ˆ–Š‡
ƒŽŽ‘–‡––‘Š‹‘ˆ—‹–•ǡ‹–Š‡…‘•‘Ž‹†ƒ–‡†’Žƒ‘ˆ–Šƒ–•…Š‡‡‘ˆ—–—ƒŽˆ—†ǡ–Š‡–Š‡’‡”‹‘†‘ˆŠ‘Ž†‹‰•ŠƒŽŽ
ƒŽ•‘‹…Ž—†‡–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡—‹–•‹…‘•‘Ž‹†ƒ–‹‰’Žƒ‘ˆ—–—ƒŽˆ—†•…Š‡‡™‡”‡Š‡Ž†„›Š‹Ǥ‘•–‘ˆ
ƒ…“—‹•‹–‹‘ ‘ˆ —‹–• ‹ –Š‡ …‘•‘Ž‹†ƒ–‡† ’Žƒ ‘ˆ —–—ƒŽ ˆ—† •…Š‡‡ ”‡ˆ‡””‡† —Ȁ• Ͷ͹ȋš‹šȌ •ŠƒŽŽ „‡ –Š‡ …‘•– ‘ˆ
ƒ…“—‹•‹–‹‘‘ˆ—‹–•‹–Š‡…‘•‘Ž‹†ƒ–‹‰’Žƒ‘ˆ—–—ƒŽˆ—†•…Š‡‡Ǥ
TRANSFER [SECTION 2(47)
Š‡‡••‡–‹ƒŽ”‡“—‹”‡‡–ˆ‘”–Š‡‹…‹†‡…‡‘ˆ–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•‹•–Š‡–”ƒ•ˆ‡”‘ˆƒDz…ƒ’‹–ƒŽƒ••‡–dzǤŠ‡…–…‘–ƒ‹•
ƒ‹…Ž—•‹˜‡†‡ϐ‹‹–‹‘‘ˆDz–”ƒ•ˆ‡”dzǡƒ†Š‡…‡ǡ‹–‹…Ž—†‡•ǣ

Sale exchange/relinquishment of assets

extinguishment any of rights therein

Transfer maturity/redemption of zero coupon

compulsory acquisition thereof under law in a case

where the asset is converted by the owner thereof
into, or is treated by him as, stock in trade of business
carried on by him, such conversion or treatment
any transaction involving the allowing of the possession
of any immovable property to be taken or retained in
part performance of a contract of the nature referred
–‘‹•‡…–‹‘ͷ͵‘ˆ”ƒ•ˆ‡”‘ˆ”‘’‡”–›…–ǡͳͺͺʹ

any transactions which have the effect of transferring

or enabling the enjoyment of an immovable property
 252 Lesson 4 Ȉ EP-TL

Š‡—’”‡‡…‘—”–‹–Š‡…ƒ•‡‘ˆ‘†ƒˆ‘‡–‡”ƒ–‹‘ƒŽ‘Ž†‹‰•ǤǤ˜•Ǥ‹‘‘ˆ†‹ƒȏʹͲͳʹȐ‰ƒ˜‡–Š‡ˆ‘ŽŽ‘™‹‰

”—Ž‹‰Ǧ
ȋƒȌ –Š‡–”ƒ•ˆ‡”‘ˆ•Šƒ”‡•‹–Š‡ˆ‘”‡‹‰Š‘Ž†‹‰…‘’ƒ›†‘‡•‘–”‡•—Ž–‹ƒ‡š–‹‰—‹•Š‡–‘ˆ–Š‡ˆ‘”‡‹‰
…‘’ƒ›ǯ•…‘–”‘Ž‘ˆ–Š‡†‹ƒ…‘’ƒ›Ǥ
ȋ„Ȍ –†‘‡•‘–…‘•–‹–—–‡ƒ‡š–‹‰—‹•Š‡–ƒ†–”ƒ•ˆ‡”‘ˆƒƒ••‡–•‹–—ƒ–‡†‹†‹ƒǤ
ȋ…Ȍ ”ƒ•ˆ‡” ‘ˆ ˆ‘”‡‹‰ Š‘Ž†‹‰ …‘’ƒ› •Šƒ”‡• ‘ˆˆ•Š‘”‡ǡ …ƒ‘– ”‡•—Ž– ‹ ƒ ‡š–‹‰—‹•Š‡– ‘ˆ –Š‡ Š‘Ž†‹‰
…‘’ƒ‹‡• ”‹‰Š– ‘ˆ …‘–”‘Ž ‘ˆ –Š‡ †‹ƒ …‘’ƒ› ƒ† –Š‡ •ƒ‡ †‘‡• ‘– …‘•–‹–—–‡ ‡š–‹‰—‹•Š‡– ƒ†
–”ƒ•ˆ‡”‘ˆƒƒ••‡–Ȁƒƒ‰‡‡–ƒ†…‘–”‘Ž‘ˆ’”‘’‡”–›•‹–—ƒ–‡†‹†‹ƒǤ
‘ •—’‡”•‡†‡–Š‹• ”—Ž‹‰ ™‹–Š ”‡–”‘•’‡…–‹˜‡ ‡ˆˆ‡…– ˆ”‘ ͳ•– ’”‹Ž ͳͻ͸ʹǡš’Žƒƒ–‹‘ ʹ –‘ •‡…–‹‘ ʹȋͶ͹ȌŠƒ• „‡‡
‹•‡”–‡†™Š‹…Š†‡ϐ‹‡•–”ƒ•ˆ‡”ƒ•ˆ‘ŽŽ‘™•ǣ
Dz”ƒ•ˆ‡”dz‹…Ž—†‡•ƒ†•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡ƒŽ™ƒ›•‹…Ž—†‡††‹•’‘•‹‰‘ˆ‘”’ƒ”–‹‰™‹–Šƒƒ••‡–‘”ƒ›‹–‡”‡•–
–Š‡”‡‹ǡ ‘” …”‡ƒ–‹‰ ƒ› ‹–‡”‡•– ‹ ƒ› ƒ••‡– ‹ ƒ› ƒ‡” ™Šƒ–•‘‡˜‡”ǡ †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›ǡ ƒ„•‘Ž—–‡Ž› ‘”
…‘†‹–‹‘ƒŽŽ›ǡ˜‘Ž—–ƒ”‹Ž›‘”‹˜‘Ž—–ƒ”‹Ž›„›™ƒ›‘ˆƒƒ‰”‡‡‡–ȋ™Š‡–Š‡”‡–‡”‡†‹–‘‹†‹ƒ‘”‘—–•‹†‡†‹ƒȌ
‘”‘–Š‡”™‹•‡ǡ‘–™‹–Š•–ƒ†‹‰–Šƒ–•—…Š–”ƒ•ˆ‡”‘ˆ”‹‰Š–•Šƒ•„‡‡…Šƒ”ƒ…–‡”‹œ‡†ƒ•„‡‹‰‡ˆˆ‡…–‡†‘”†‡’‡†‡–
—’‘‘”ϐŽ‘™‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ•Šƒ”‡‘”•Šƒ”‡•‘ˆƒ…‘’ƒ›”‡‰‹•–‡”‡†‘”‹…‘”’‘”ƒ–‡†‘—–•‹†‡†‹ƒǤ
Š‡ ƒ„‘˜‡ –”ƒ•ƒ…–‹‘• ™‘—Ž† „‡ †‡‡‡† ƒ• ƒ –”ƒ•ˆ‡” ‘–™‹–Š•–ƒ†‹‰ –Šƒ– •—…Š –”ƒ•ˆ‡” ‘ˆ ”‹‰Š–• Šƒ• „‡‡
…Šƒ”ƒ…–‡”‹œ‡†ƒ•„‡‹‰‡ˆˆ‡…–‡†‘”†‡’‡†‡–—’‘‘”ϐŽ‘™‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ•Šƒ”‡‘”•Šƒ”‡•‘ˆƒ…‘’ƒ›
”‡‰‹•–‡”‡†‘”‹…‘”’‘”ƒ–‡†‘—–•‹†‡†‹ƒǤ
Š‡†‹•–”‹„—–‹‘‘ˆ…ƒ’‹–ƒŽƒ••‡–•‘–Š‡†‹••‘Ž—–‹‘‘ˆƒϐ‹”ǡ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•‘”‘–Š‡”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǡ‹•
ƒŽ•‘”‡‰ƒ”†‡†ƒ•–”ƒ•ˆ‡”Ž‹ƒ„Ž‡–‘…ƒ’‹–ƒŽ‰ƒ‹•–ƒšǤ ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–‹‰…ƒ’‹–ƒŽ‰ƒ‹‹•—…Š…ƒ•‡•ǡ–Š‡
ˆƒ‹”Ǧƒ”‡– ˜ƒŽ—‡ ‘ˆ –Š‡ …ƒ’‹–ƒŽ ƒ••‡– ‘ –Š‡ †ƒ–‡ ‘ˆ •—…Š †‹•–”‹„—–‹‘ ™‹ŽŽ „‡ †‡‡‡† –‘ „‡ –Š‡ ˆ—ŽŽ ˜ƒŽ—‡ ‘ˆ
…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–Ǥ

What doesn’t constitute Transfer?

‡…–‹‘Ͷ͹•’‡…‹ϐ‹‡•…‡”–ƒ‹–”ƒ•ƒ…–‹‘•™Š‹…Š™‹ŽŽ‘–„‡”‡‰ƒ”†‡†ƒ•ƒ–”ƒ•ˆ‡”ǡƒ•„‡Ž‘™ǣ
Ȉ ›†‹•–”‹„—–‹‘‘ˆ…ƒ’‹–ƒŽƒ••‡–•‘total / partial partition of HUF
Ȉ ›–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–—†‡”ƒgift / irrevocable trust ȋ†‘‡•ǯ–‹…Ž—†‡ǯ•Ȍ
Ȉ ”ƒ•ˆ‡”‘ˆƒ••‡–ˆ”‘Holding Company to its wholly owned Indian Subsidiary and vice-versa
Ȉ ”ƒ•ˆ‡” ‘ˆ …ƒ’‹–ƒŽ ƒ••‡– ˆ”‘ amalgamating company to amalgamated companyǡ ‹ ƒ •…Š‡‡ ‘ˆ
ƒƒŽ‰ƒƒ–‹‘ǡƒ•Ž‘‰ƒ•–Š‡”‡•—Ž–ƒ–…‘’ƒ›‹•ƒ†‹ƒ‘’ƒ›
Ȉ ”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–ˆ”‘demerged company to resulting companyǡ‹ƒ•…Š‡‡‘ˆ†‡‡”‰‡”ǡƒ•Ž‘‰
ƒ•–Š‡”‡•—Ž–ƒ–…‘’ƒ›‹•ƒ†‹ƒ‘’ƒ›
Ȉ Transfer / issue of shares by the resulting company to the shareholders of the demerged companyǡ‹ˆ
•—…Š–”ƒ•ˆ‡”™ƒ•ƒ†‡‹…‘•‹†‡”ƒ–‹‘‘ˆ•—…Š†‡‡”‰‡”
Ȉ ”ƒ•ˆ‡”‘ˆ•Šƒ”‡•„›ƒ•Šƒ”‡Š‘Ž†‡”ǡŠ‡Ž†‹–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ǡ‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘ǡ‹ˆ•—…Š
–”ƒ•ˆ‡”‹•ƒ†‡ƒ•ƒ…‘•‹†‡”ƒ–‹‘ǡ„›™ƒ›‘ˆ allotment of shares in the amalgamated Indian company
Ȉ ”ƒ•ˆ‡” ‘ˆ rupee denominated bonds / any government securityǡ ‘—–•‹†‡ †‹ƒǡ „› ƒ ‘Ǧ”‡•‹†‡– –‘
ƒ‘–Š‡”‘Ǧ”‡•‹†‡–
Ȉ Redemption of sovereign gold bondsǡ‹••—‡†„›ǡ„›ƒ‹†‹˜‹†—ƒŽ
Ȉ Transfer of any capital asset to the Government / University / National Museum Ȁƒ–‹‘ƒŽ”–
ƒŽŽ‡”›ǡ
ƒ›™‘”‘ˆƒ”–ǡ„‘‘ǡƒ—•…”‹’–ǡ†”ƒ™‹‰ǡ’ƒ‹–‹‰ǡ’”‹–
Ȉ Transfer made outside India of Rupee Denominated Bond (RDB’s) of an Indian Company, ‹••—‡†
‘—–•‹†‡†‹ƒ„›ƒ‘Ǧ”‡•‹†‡––‘ƒ‘–Š‡”‘Ǧ”‡•‹†‡–Ǥ
Ȉ Transfer by way of conversion of bonds / debentures / preference shares into equity shares of that
Company
 Lesson 4 Ȉ Part IV - Income from Capital Gains ʹͷ͵

Ȉ ”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–—†‡”reverse mortgage
Ȉ ”ƒ•ˆ‡”„›ƒ—‹–Š‘Ž†‡”—†‡”consolidation plans / schemes of Mutual Fund
YEAR OF CHARGEABILITY AS “CAPITAL GAINS”
ƒ’‹–ƒŽ‰ƒ‹••ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡‹–Š‡”‡˜‹‘—•‡ƒ”‹™Š‹…Š–Š‡–”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡Ǥ‘‡‡š…‡’–‹‘•–‘–Š‹•—Ž‡
ƒ”‡ƒ•—†‡”ǣ
(i) Insurance Receipts [Section 45(1A)]
 Š‡”‡ ƒ› ’‡”•‘ ”‡…‡‹˜‡• ƒ– ƒ› –‹‡ †—”‹‰ ƒ› ’”‡˜‹‘—• ›‡ƒ” ƒ› ‘‡› ‘” ‘–Š‡” ƒ••‡–• —†‡” ƒ
‹•—”ƒ…‡ˆ”‘ƒ‹•—”‡”‘ƒ……‘—–‘ˆ†ƒƒ‰‡–‘‘”†‡•–”—…–‹‘‘ˆƒ›…ƒ’‹–ƒŽƒ••‡–ǡƒ•ƒ”‡•—Ž–‘ˆ
Ȉ ϐŽ‘‘†ǡ–›’Š‘‘ǡŠ—””‹…ƒ‡ǡ…›…Ž‘‡ǡ‡ƒ”–Š“—ƒ‡‘”‘–Š‡”…‘˜—Ž•‹‘‘ˆƒ–—”‡Ǣ‘”
Ȉ ”‹‘–‘”…‹˜‹Ž†‹•–—”„ƒ…‡Ǣ‘”
Ȉ ƒ……‹†‡–ƒŽϐ‹”‡‘”‡š’Ž‘•‹‘Ǣ‘”
Ȉ ƒ…–‹‘„›ƒ‡‡›‘”ƒ…–‹‘–ƒ‡‹…‘„ƒ–‹‰ƒ‡‡›ȋ™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–†‡…Žƒ”ƒ–‹‘‘ˆ
™ƒ”Ȍǡ–Š‡ǡ

 ƒ›’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘”‡…‡‹’–‘ˆ•—…Š‘‡›‘”‘–Š‡”ƒ••‡–••ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš
—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ‰ƒ‹•dzƒ†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ•—…Š’‡”•‘ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‹
™Š‹…Š•—…Š‘‡›‘”‘–Š‡”ƒ••‡–™ƒ•”‡…‡‹˜‡†ƒ†ˆ‘”–Š‡’—”’‘•‡‘ˆ•‡…–‹‘Ͷͺǡ˜ƒŽ—‡‘ˆƒ›‘‡›‘”–Š‡
‘ˆ‘–Š‡”ƒ••‡–•‘–Š‡†ƒ–‡‘ˆ•—…Š”‡…‡‹’–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†
‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ•—…Š…ƒ’‹–ƒŽƒ••‡–Ǥ
(ii) Amount received under a Unit Linked Insurance Policy [Section 45(1B)]
 ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌǡ™Š‡”‡ƒ›’‡”•‘”‡…‡‹˜‡•ƒ–ƒ›–‹‡†—”‹‰ƒ›
’”‡˜‹‘—•›‡ƒ”ƒ›ƒ‘—–—†‡”ƒ—‹–Ž‹‡†‹•—”ƒ…‡’‘Ž‹…›ǡ–‘™Š‹…Š‡š‡’–‹‘—†‡”…Žƒ—•‡ȋͳͲȌ‘ˆ
•‡…–‹‘ͳͲ†‘‡•‘–ƒ’’Ž›‘ƒ……‘—–‘ˆ–Š‡ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ–Š‡ˆ‘—”–Šƒ†ϐ‹ˆ–Š’”‘˜‹•‘–Š‡”‡‘ˆǡ‹…Ž—†‹‰–Š‡
ƒ‘—– ƒŽŽ‘…ƒ–‡† „› ™ƒ› ‘ˆ „‘—• ‘ •—…Š ’‘Ž‹…›ǡ –Š‡ǡ ƒ› ’”‘ϐ‹–• ‘” ‰ƒ‹• ƒ”‹•‹‰ ˆ”‘ ”‡…‡‹’– ‘ˆ •—…Š
ƒ‘—–„›•—…Š’‡”•‘•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ‰ƒ‹•dzƒ†•ŠƒŽŽ„‡†‡‡‡†
–‘„‡–Š‡‹…‘‡‘ˆ•—…Š’‡”•‘‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–™ƒ•”‡…‡‹˜‡†ƒ†–Š‡‹…‘‡
–ƒšƒ„Ž‡•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ[Inserted by Finance Act, 2021]
(iii) Conversion or treatment of a capital asset as stock-in-trade [Section 45(2)]
 ’‡”•‘™Š‘‹•–Š‡‘™‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ƒ›…‘˜‡”––Š‡•ƒ‡‘”–”‡ƒ–‹–ƒ••–‘…Ǧ‹Ǧ–”ƒ†‡‘ˆ–Š‡„—•‹‡••
…ƒ””‹‡†‘„›Š‹Ǥ•‘–‡†ƒ„‘˜‡ǡ–Š‡ƒ„‘˜‡–”ƒ•ƒ…–‹‘‹•ƒ–”ƒ•ˆ‡”Ǥ
 •’‡”•‡…–‹‘ͶͷȋʹȌǡ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•‡…–‹‘ͶͷȋͳȌǡ„‡‹‰–Š‡…Šƒ”‰‹‰•‡…–‹‘ǡ–Š‡
’”‘ϐ‹–• ‘” ‰ƒ‹• ƒ”‹•‹‰ ˆ”‘ –Š‡ ƒ„‘˜‡ …‘˜‡”•‹‘ ‘” –”‡ƒ–‡– ™‹ŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ ‹…‘‡Ǧ–ƒš ƒ• Š‹•
‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š•–‘…Ǧ‹Ǧ–”ƒ†‡‹••‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†„›Š‹ƒ†ˆ‘”–Š‡
’—”’‘•‡‘ˆ•‡…–‹‘Ͷͺǡ–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–‘–Š‡†ƒ–‡‘ˆ•—…Š…‘˜‡”•‹‘‘”–”‡ƒ–‡–•ŠƒŽŽ„‡
†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–Ǥ
…‘‡ƒ”‹•‹‰‘ƒ……‘—–‘ˆ–‘…‹–”ƒ†‡ǣ
ͳǤ —•‹‡••…‘‡αƒŽ‡’”‹…‡‘ˆ•–‘…‹–”ƒ†‡ȋǦȌ ‘–Š‡†ƒ–‡‘ˆ…‘˜‡”•‹‘
ʹǤ ƒ’‹–ƒŽ
ƒ‹α  ‘ –Š‡ †ƒ–‡ ‘ˆ …‘˜‡”•‹‘ ȋǦȌ ‘•–Ȁ†‡š‡† …‘•– ‘ˆ ƒ…“—‹•‹–‹‘ Ȁ ‹’”‘˜‡‡–
ȏ†‡šƒ–‹‘„‡‡ϐ‹–™‘—Ž†„‡…‘•‹†‡”‡†‹”‡Žƒ–‹‘–‘–Š‡›‡ƒ”‘ˆ…‘˜‡”•‹‘‘ˆ…ƒ’‹–ƒŽƒ••‡–‹–‘•–‘…
‹–”ƒ†‡Ǥ
͵Ǥ ‘–Šƒ’‹–ƒŽ
ƒ‹•ƒ†—•‹‡••‹…‘‡ƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡›‡ƒ”‹™Š‹…Š•–‘…Ǧ‹Ǧ–”ƒ†‡‹•
•‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†Ǥ

ȋ‹˜Ȍ ”ƒ•ˆ‡”‘ˆ„‡‡ϐ‹…‹ƒŽ‹–‡”‡•–‹ƒ›•‡…—”‹–‹‡•ȏ‡…–‹‘ͶͷȋʹȌȐ
 •’‡”•‡…–‹‘ͶͷȋʹȌǡ™Š‡”‡ƒ›’‡”•‘Šƒ•Šƒ†ƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ƒ›„‡‡ϐ‹…‹ƒŽ‹–‡”‡•–
‹ƒ›•‡…—”‹–‹‡•ǡ–Š‡ǡƒ›’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”ƒ†‡„›–Š‡‡’‘•‹–‘”›‘”’ƒ”–‹…‹’ƒ–‘ˆ
 254 Lesson 4 Ȉ EP-TL

•—…Š „‡‡ϐ‹…‹ƒŽ ‹–‡”‡•– ‹ ”‡•’‡…– ‘ˆ •‡…—”‹–‹‡• •ŠƒŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ƒ• –Š‡ ‹…‘‡ ‘ˆ –Š‡ „‡‡ϐ‹…‹ƒŽ
‘™‡” ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š •—…Š –”ƒ•ˆ‡” –‘‘ ’Žƒ…‡ ƒ† •ŠƒŽŽ ‘– „‡ ”‡‰ƒ”†‡† ƒ• ‹…‘‡ ‘ˆ –Š‡
†‡’‘•‹–‘”› ™Š‘ ‹• †‡‡‡† –‘ „‡ –Š‡ ”‡‰‹•–‡”‡† ‘™‡” ‘ˆ –Š‡ •‡…—”‹–‹‡• „› ˜‹”–—‡ ‘ˆ •‡…–‹‘ ͳͲȋͳȌ ‘ˆ –Š‡
‡’‘•‹–‘”‹‡•…–ǡͳͻͻ͸ƒ† ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘Ͷͺƒ†’”‘˜‹•‘–‘•‡…–‹‘ʹȋͶʹȌǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘
ƒ†–Š‡’‡”‹‘†‘ˆŠ‘Ž†‹‰‘ˆ•‡…—”‹–‹‡••ŠƒŽŽ„‡†‡–‡”‹‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡ϐ‹”•–Ǧ‹Ǧϐ‹”•–Ǧ‘—–ȋ  Ȍ‡–Š‘†Ǥ
ȋ˜Ȍ –”‘†—…–‹‘‘ˆ…ƒ’‹–ƒŽƒ••‡–ƒ•…ƒ’‹–ƒŽ…‘–”‹„—–‹‘ȏ‡…–‹‘Ͷͷȋ͵ȌȐ
 Š‡”‡ƒ’‡”•‘–”ƒ•ˆ‡”•ƒ…ƒ’‹–ƒŽƒ••‡––‘ƒϐ‹”ǡ‘”‹™Š‹…ŠŠ‡‹•ƒŽ”‡ƒ†›ƒ’ƒ”–‡”Ȁ‡„‡”‘”‹•
–‘„‡…‘‡ƒ’ƒ”–‡”Ȁ‡„‡”„›™ƒ›‘ˆ…ƒ’‹–ƒŽ…‘–”‹„—–‹‘‘”‘–Š‡”™‹•‡ǡ–Š‡’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘
•—…Š–”ƒ•ˆ‡”™‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š–”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡ƒ†
ˆ‘”–Š‡’—”’‘•‡‘ˆ•‡…–‹‘Ͷͺǡ–Š‡˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘™‹ŽŽ„‡–Š‡ƒ‘—–”‡…‘”†‡†‹–Š‡„‘‘•‘ˆ
ƒ……‘—–‘ˆ–Š‡ϐ‹”ǡ‘”ƒ•–Š‡˜ƒŽ—‡‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–Ǥ
ȋ˜‹Ȍ ‡…‡‹’–‘ˆ‘‡›‘”…ƒ’‹–ƒŽƒ••‡–•ˆ”‘•’‡…‹ϐ‹‡†‡–‹–›ȏ‡…–‹‘ͶͷȋͶȌȐ‡’Žƒ…‡†„› ‹ƒ…‡…–ǡʹͲʹͳ
 ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌǡ™Š‡”‡ƒ•’‡…‹ϐ‹‡†’‡”•‘”‡…‡‹˜‡•†—”‹‰–Š‡’”‡˜‹‘—•
›‡ƒ”ƒ›‘‡›‘”…ƒ’‹–ƒŽƒ••‡–‘”„‘–Šˆ”‘ƒ•’‡…‹ϐ‹‡†‡–‹–›‹…‘‡…–‹‘™‹–Š–Š‡”‡…‘•–‹–—–‹‘‘ˆ•—…Š
•’‡…‹ϐ‹‡†‡–‹–›ǡ–Š‡ƒ›’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘”‡…‡‹’–‘ˆ•—…Š‘‡›„›–Š‡•’‡…‹ϐ‹‡†’‡”•‘•ŠƒŽŽ„‡
…Šƒ”‰‡ƒ„Ž‡ –‘ ‹…‘‡Ǧ–ƒš ƒ• ‹…‘‡ ‘ˆ •—…Š •’‡…‹ϐ‹‡† ‡–‹–› —†‡” –Š‡ Š‡ƒ† Dzƒ’‹–ƒŽ ‰ƒ‹•dz ƒ† •ŠƒŽŽ „‡
†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ•—…Š•’‡…‹ϐ‹‡†‡–‹–›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š‘‡›‘”…ƒ’‹–ƒŽƒ••‡–‘”
„‘–Š™‡”‡”‡…‡‹˜‡†„›–Š‡•’‡…‹ϐ‹‡†’‡”•‘ǡƒ†‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰–‘–Š‡…‘–”ƒ”›…‘–ƒ‹‡†‹–Š‹•
…–ǡ•—…Š’”‘ϐ‹–•‘”‰ƒ‹••ŠƒŽŽ„‡†‡–‡”‹‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ˆ‘ŽŽ‘™‹‰ˆ‘”—Žƒǡƒ‡Ž›ǣ
 αΪǦ
 Š‡”‡ǡ
 ዐ…‘‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‹••—„Ǧ•‡…–‹‘ƒ•‹…‘‡‘ˆ–Š‡•’‡…‹ϐ‹‡†‡–‹–›—†‡”–Š‡Š‡ƒ†
Dzƒ’‹–ƒŽ‰ƒ‹•dzǢ
 α˜ƒŽ—‡‘ˆƒ›‘‡›”‡…‡‹˜‡†„›–Š‡•’‡…‹ϐ‹‡†’‡”•‘ˆ”‘–Š‡•’‡…‹ϐ‹‡†‡–‹–›‘–Š‡†ƒ–‡‘ˆ•—…Š”‡…‡‹’–Ǣ
 α–Š‡ƒ‘—–‘ˆˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–”‡…‡‹˜‡†„›–Š‡•’‡…‹ϐ‹‡†’‡”•‘ˆ”‘–Š‡•’‡…‹ϐ‹‡†
‡–‹–›‘–Š‡†ƒ–‡‘ˆ•—…Š”‡…‡‹’–Ǣƒ†
 α–Š‡ƒ‘—–‘ˆ„ƒŽƒ…‡‹–Š‡…ƒ’‹–ƒŽƒ……‘—–ȋ”‡’”‡•‡–‡†‹ƒ›ƒ‡”Ȍ‘ˆ–Š‡•’‡…‹ϐ‹‡†’‡”•‘‹–Š‡
„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡•’‡…‹ϐ‹‡†‡–‹–›ƒ––Š‡–‹‡‘ˆ‹–•”‡…‘•–‹–—–‹‘ǣ
 ”‘˜‹†‡†–Šƒ–‹ˆ–Š‡˜ƒŽ—‡‘ˆDzdz‹–Š‡ƒ„‘˜‡ˆ‘”—Žƒ‹•‡‰ƒ–‹˜‡ǡ‹–•˜ƒŽ—‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡œ‡”‘ǣ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡„ƒŽƒ…‡‹–Š‡…ƒ’‹–ƒŽƒ……‘—–‘ˆ–Š‡•’‡…‹ϐ‹‡†’‡”•‘‹–Š‡„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡
•’‡…‹ϐ‹‡† ‡–‹–› ‹• –‘ „‡ …ƒŽ…—Žƒ–‡† ™‹–Š‘—– –ƒ‹‰ ‹–‘ ƒ……‘—– –Š‡ ‹…”‡ƒ•‡ ‹ –Š‡ …ƒ’‹–ƒŽ ƒ……‘—– ‘ˆ –Š‡
•’‡…‹ϐ‹‡†’‡”•‘†—‡–‘”‡˜ƒŽ—ƒ–‹‘‘ˆƒ›ƒ••‡–‘”†—‡–‘•‡ŽˆǦ‰‡‡”ƒ–‡†‰‘‘†™‹ŽŽ‘”ƒ›‘–Š‡”•‡ŽˆǦ‰‡‡”ƒ–‡†
ƒ••‡–Ǥ
š’Žƒƒ–‹‘ͳǣ
ȋ‹Ȍ –Š‡‡š’”‡••‹‘•Dz”‡…‘•–‹–—–‹‘‘ˆ–Š‡•’‡…‹ϐ‹‡†‡–‹–›dzǡDz•’‡…‹ϐ‹‡†‡–‹–›dzƒ†Dz•’‡…‹ϐ‹‡†’‡”•‘dz•ŠƒŽŽ
Šƒ˜‡–Š‡‡ƒ‹‰•”‡•’‡…–‹˜‡Ž›ƒ••‹‰‡†–‘–Š‡‹•‡…–‹‘ͻǢ
ȋ‹‹Ȍ Dz•‡ŽˆǦ‰‡‡”ƒ–‡†‰‘‘†™‹ŽŽdzƒ†Dz•‡ŽˆǦ‰‡‡”ƒ–‡†ƒ••‡–dz‡ƒ‰‘‘†™‹ŽŽ‘”ƒ••‡–ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ™Š‹…Š
Šƒ•„‡‡ƒ…“—‹”‡†™‹–Š‘—–‹…—””‹‰ƒ›…‘•–ˆ‘”’—”…Šƒ•‡‘”™Š‹…ŠŠƒ•„‡‡‰‡‡”ƒ–‡††—”‹‰–Š‡
…‘—”•‡‘ˆ–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ

 š’Žƒƒ–‹‘ʹǣ ‘”–Š‡”‡‘˜ƒŽ‘ˆ†‘—„–•ǡ‹–‹•…Žƒ”‹ϐ‹‡†–Šƒ–™Š‡ƒ…ƒ’‹–ƒŽƒ••‡‡–‹•”‡…‡‹˜‡†„›ƒ•’‡…‹ϐ‹‡†
’‡”•‘ˆ”‘ƒ•’‡…‹ϐ‹‡†‡–‹–›‹…‘‡…–‹‘™‹–Š–Š‡”‡…‘•–‹–—–‹‘‘ˆ•—…Š•’‡…‹ϐ‹‡†‡–‹–›ǡ–Š‡’”‘˜‹•‹‘•‘ˆ
–Š‹• •—„Ǧ•‡…–‹‘ •ŠƒŽŽ ‘’‡”ƒ–‡ ‹ ƒ††‹–‹‘ –‘ –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ ͻ ƒ† –Š‡ –ƒšƒ–‹‘ —†‡” –Š‡ •ƒ‹†
’”‘˜‹•‹‘•–Š‡”‡‘ˆ•ŠƒŽŽ„‡™‘”‡†‘—–‹†‡’‡†‡–Ž›Ǥ
 ’‡…‹ƒŽ’‘‹–ǣ‡…–‹‘Ͷͺǣ‹…ƒ•‡‘ˆ˜ƒŽ—‡‘ˆƒ›‘‡›‘”…ƒ’‹–ƒŽƒ••‡–”‡…‡‹˜‡†„›ƒ•’‡…‹ϐ‹‡†’‡”•‘ˆ”‘ƒ
•’‡…‹ϐ‹‡†‡–‹–›”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘Ͷͷǡ–Š‡ƒ‘—–…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšƒ•‹…‘‡
 Lesson 4 Ȉ Part IV - Income from Capital Gains 255

‘ˆ•—…Š•’‡…‹ϐ‹‡†‡–‹–›—†‡”–Šƒ–•—„Ǧ•‡…–‹‘™Š‹…Š‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡…ƒ’‹–ƒŽƒ••‡–„‡‹‰–”ƒ•ˆ‡””‡†„›
–Š‡•’‡…‹ϐ‹‡†‡–‹–›ǡ…ƒŽ…—Žƒ–‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”dzǤ
(vii) Compensation on compulsory acquisition [Section 45(5)]
 ‘‡–‹‡•ǡ ƒ „—‹Ž†‹‰ ‘” •‘‡ ‘–Š‡” …ƒ’‹–ƒŽ ƒ••‡– „‡Ž‘‰‹‰ –‘ ƒ ’‡”•‘ ‹• –ƒ‡ ‘˜‡” „› –Š‡ ‡–”ƒŽ

‘˜‡”‡–„›™ƒ›‘ˆ…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘Ǥ–Šƒ–…ƒ•‡ǡ–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡–”ƒ•ˆ‡”‹•†‡–‡”‹‡†
‘”ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”Ǥ—…Š…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‡…Šƒ”‰‡ƒ„Ž‡ƒ•‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•
›‡ƒ”‹™Š‹…Š•—…Š…‘’‡•ƒ–‹‘‘”’ƒ”––Š‡”‡‘ˆ‹•”‡…‡‹˜‡†Ǥ
Enhanced Compensation Ǧƒ›–‹‡•ǡ’‡”•‘•™Š‘•‡…ƒ’‹–ƒŽƒ••‡–•Šƒ˜‡„‡‡–ƒ‡‘˜‡”„›–Š‡‡–”ƒŽ

‘˜‡”‡– ƒ† ™Š‘ ‰‡– …‘’‡•ƒ–‹‘ ˆ”‘ –Š‡
‘˜‡”‡– ‰‘ –‘ –Š‡ ‘—”– ‘ˆ Žƒ™ ˆ‘” ‡Šƒ…‡‡– ‘ˆ
…‘’‡•ƒ–‹‘Ǥ ˆ –Š‡ …‘—”– ƒ™ƒ”†• ƒ …‘’‡•ƒ–‹‘ ™Š‹…Š ‹• Š‹‰Š‡” –Šƒ –Š‡ ‘”‹‰‹ƒŽ …‘’‡•ƒ–‹‘ǡ –Š‡
†‹ˆˆ‡”‡…‡ –Š‡”‡‘ˆ ™‹ŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ …ƒ’‹–ƒŽ ‰ƒ‹• ‹ –Š‡ ›‡ƒ” ‹ ™Š‹…Š –Š‡ •ƒ‡ ‹• ”‡…‡‹˜‡† ˆ”‘ –Š‡
‰‘˜‡”‡–Ǥ
Cost of acquisition/improvement in case of enhanced compensation Ǧ ‘” –Š‹• ’—”’‘•‡ǡ –Š‡ …‘•– ‘ˆ
ƒ…“—‹•‹–‹‘ƒ†…‘•–‘ˆ‹’”‘˜‡‡–•ŠƒŽŽ„‡–ƒ‡–‘„‡‹ŽǤ
Compensation received in pursuance of an interim order deemed as income chargeable to tax in the
›‡ƒ” ‘ˆ ϐ‹ƒŽ ‘”†‡” Ǧ  ‘”†‡” –‘ ”‡‘˜‡ –Š‡ —…‡”–ƒ‹–› ”‡‰ƒ”†‹‰ –Š‡ ›‡ƒ” ‹ ™Š‹…Š –Š‡ ƒ‘—– ‘ˆ
…‘’‡•ƒ–‹‘”‡…‡‹˜‡†‹’—”•—ƒ…‡‘ˆƒ‹–‡”‹‘”†‡”‘ˆ–Š‡‘—”–ǡ”‹„—ƒŽ‘”‘–Š‡”ƒ—–Š‘”‹–›‹•–‘„‡
…Šƒ”‰‡†–‘–ƒšǡƒ’”‘˜‹•‘Šƒ•„‡‡‹•‡”–‡†ƒˆ–‡”…Žƒ—•‡ȋ„Ȍ–‘’”‘˜‹†‡–Šƒ–•—…Š…‘’‡•ƒ–‹‘•ŠƒŽŽ„‡†‡‡‡†
–‘„‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Ǯƒ’‹–ƒŽ‰ƒ‹•ǯ‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ϐ‹ƒŽ‘”†‡”‘ˆ•—…Š
‘—”–ǡ”‹„—ƒŽ‘”‘–Š‡”ƒ—–Š‘”‹–›‹•ƒ†‡Ǥ
Reduction of enhanced compensation - Š‡”‡…ƒ’‹–ƒŽ‰ƒ‹Šƒ•„‡‡…Šƒ”‰‡†‘–Š‡…‘’‡•ƒ–‹‘”‡…‡‹˜‡†
„›–Š‡ƒ••‡••‡‡ˆ‘”–Š‡…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘‘ˆƒ›…ƒ’‹–ƒŽƒ••‡–‘”‡Šƒ…‡†…‘’‡•ƒ–‹‘”‡…‡‹˜‡†„›–Š‡
ƒ••‡••‡‡ ƒ† •—„•‡“—‡–Ž› •—…Š …‘’‡•ƒ–‹‘ ‹• ”‡†—…‡† „› ƒ› ‘—”–ǡ ”‹„—ƒŽ ‘” ƒ› ƒ—–Š‘”‹–›ǡ –Š‡
ƒ••‡••‡†…ƒ’‹–ƒŽ‰ƒ‹‘ˆ–Šƒ–›‡ƒ”•ŠƒŽŽ„‡”‡…‘’—–‡†„›–ƒ‹‰‹–‘…‘•‹†‡”ƒ–‹‘–Š‡”‡†—…‡†ƒ‘—–ǤŠ‹•
”‡Ǧ…‘’—–ƒ–‹‘•ŠƒŽŽ„‡†‘‡„›™ƒ›‘ˆ”‡…–‹ϐ‹…ƒ–‹‘Ǥ
Death of the transferorǦ – ‹• ’‘••‹„Ž‡ –Šƒ– –Š‡ –”ƒ•ˆ‡”‘” ƒ› †‹‡ „‡ˆ‘”‡ Š‡ ”‡…‡‹˜‡• –Š‡ ‡Šƒ…‡†
…‘’‡•ƒ–‹‘Ǥ  –Šƒ– …ƒ•‡ǡ –Š‡ ‡Šƒ…‡† …‘’‡•ƒ–‹‘ ‘” …‘•‹†‡”ƒ–‹‘ ™‹ŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ‹ –Š‡
Šƒ†•‘ˆ–Š‡’‡”•‘™Š‘”‡…‡‹˜‡†–Š‡•ƒ‡Ǥ

ȋ˜‹‹‹Ȍƒšƒ„‹Ž‹–›‘ˆƒ’‹–ƒŽ
ƒ‹•‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‰”‡‡‡–ȏ‡…–‹‘ͶͷȋͷȌȐ
 …ƒ•‡‘ˆƒƒ••‡••‡‡„‡‹‰‹†‹˜‹†—ƒŽ‘”‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ™Š‘‡–‡”•‹–‘ƒ•’‡…‹ϐ‹‡†ƒ‰”‡‡‡–ˆ‘”
†‡˜‡Ž‘’‡–‘ˆƒ’”‘Œ‡…–ǡ–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰ˆ”‘•—…Š–”ƒ•ˆ‡”•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšƒ•
‹…‘‡ ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡ …‡”–‹ϐ‹…ƒ–‡ ‘ˆ …‘’Ž‡–‹‘ ˆ‘” –Š‡ ™Š‘Ž‡ ‘” ’ƒ”– ‘ˆ –Š‡ ’”‘Œ‡…– ‹•
‹••—‡†„›–Š‡…‘’‡–‡–ƒ—–Š‘”‹–›Ǥ
Full value of consideration: ‘”–Š‹•’—”’‘•‡ǡ–Š‡•–ƒ’†—–›˜ƒŽ—‡‘ˆŠ‹••Šƒ”‡ǡ„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”
„‘–Šǡ‹–Š‡’”‘Œ‡…–‘–Š‡†ƒ–‡‘ˆ‹••—‹‰‘ˆ•ƒ‹†…‡”–‹ϐ‹…ƒ–‡‘ˆ…‘’Ž‡–‹‘ƒ•‹…”‡ƒ•‡†„›ƒ›…‘•‹†‡”ƒ–‹‘
”‡…‡‹˜‡†‹…ƒ•Šǡ‹ˆƒ›ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ
”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–Ǥ
 ‘Ǧƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ–Š‡„‡‡ϐ‹…‹ƒŽ’”‘˜‹•‹‘ǣ–ƒ›ǡŠ‘™‡˜‡”ǡ„‡‘–‡†–Šƒ––Š‡•‡„‡‡ϐ‹…‹ƒŽ’”‘˜‹•‹‘•
™‘—Ž†‘–ƒ’’Ž›ǡ™Š‡”‡–Š‡ƒ••‡••‡‡–”ƒ•ˆ‡”•Š‹••Šƒ”‡‹–Š‡’”‘Œ‡…–‘‘”„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ•ƒ‹†
…‘’Ž‡–‹‘…‡”–‹ϐ‹…ƒ–‡ƒ†–Š‡…ƒ’‹–ƒŽ‰ƒ‹•–ƒšŽ‹ƒ„‹Ž‹–›™‘—Ž†„‡†‡‡‡†–‘ƒ”‹•‡‹–Š‡’”‡˜‹‘—•›‡ƒ”‹
™Š‹…Š •—…Š –”ƒ•ˆ‡” –‘‘ ’Žƒ…‡Ǥ  •—…Š ƒ …ƒ•‡ǡ ˆ—ŽŽ ˜ƒŽ—‡ ‘ˆ …‘•‹†‡”ƒ–‹‘ ”‡…‡‹˜‡† ‘” ƒ……”—‹‰ •ŠƒŽŽ „‡
†‡–‡”‹‡†„›–Š‡‰‡‡”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‡…–Ǥ
 ‡ƒ‹‰‘ˆ…‡”–ƒ‹–‡”•ǣ
Competent authority: Š‡ƒ—–Š‘”‹–›‡’‘™‡”‡†–‘ƒ’’”‘˜‡–Š‡„—‹Ž†‹‰’Žƒ„›‘”—†‡”ƒ›Žƒ™ˆ‘”–Š‡
–‹‡„‡‹‰‹ˆ‘”…‡Ǥ
‡ƒ‹‰‘ˆ’‡…‹ϐ‹‡†‰”‡‡‡–ǣ’‡…‹ϐ‹‡†ƒ‰”‡‡‡–‡ƒ•–Š‡”‡‰‹•–‡”‡†ƒ‰”‡‡‡–‹™Š‹…Šƒ’‡”•‘
‘™‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡƒ‰”‡‡•–‘ƒŽŽ‘™ƒ‘–Š‡”’‡”•‘–‘†‡˜‡Ž‘’ƒ”‡ƒŽ‡•–ƒ–‡’”‘Œ‡…–‘•—…ŠŽƒ†
 256 Lesson 4 Ȉ EP-TL

‘”„—‹Ž†‹‰‘”„‘–Šǡ‹…‘•‹†‡”ƒ–‹‘‘ˆƒ•Šƒ”‡ǡ„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Š‹•—…Š’”‘Œ‡…–ǡ™Š‡–Š‡”™‹–Š
‘”™‹–Š‘—–’ƒ›‡–‘ˆ’ƒ”–‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘‹…ƒ•ŠǤ
Stamp duty value: Š‡˜ƒŽ—‡ƒ†‘’–‡†‘”ƒ••‡••‡†‘””‡ƒ••‡••ƒ„Ž‡„›ƒ›ƒ—–Š‘”‹–›‘ˆ
‘˜‡”‡–ˆ‘”–Š‡
’—”’‘•‡‘ˆ’ƒ›‡–‘ˆ•–ƒ’†—–›‹”‡•’‡…–‘ˆƒ‹‘˜ƒ„Ž‡’”‘’‡”–›„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–ŠǤ

CAPITAL GAINS ON DISTRIBUTION OF ASSETS BY COMPANIES IN LIQUIDATION [SECTION 46]

(1) In the hands of liquidated company: Š‡”‡–Š‡ƒ••‡–•‘ˆƒ…‘’ƒ›ƒ”‡†‹•–”‹„—–‡†–‘‹–••Šƒ”‡Š‘Ž†‡”•‘
‹–•Ž‹“—‹†ƒ–‹‘ǡ•—…Š†‹•–”‹„—–‹‘•ŠƒŽŽ„‡”‡‰ƒ”†‡†ƒ•ƒ–”ƒ•ˆ‡”„›–Š‡…‘’ƒ›ˆ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘
Ͷͷȏ‡…–‹‘Ͷ͸ȋͳȌȐǤ
(2) In the hands of shareholders: Šƒ”‡Š‘Ž†‡”• ”‡…‡‹˜‡ ‘‡› ‘” ‘–Š‡” ƒ••‡–• ˆ”‘ –Š‡ …‘’ƒ› ‘ ‹–•
Ž‹“—‹†ƒ–‹‘ǤŠ‡›™‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Ǯ…ƒ’‹–ƒŽ‰ƒ‹•ǯ‹”‡•’‡…–‘ˆ–Š‡ƒ”‡–
˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–•”‡…‡‹˜‡†‘–Š‡†ƒ–‡‘ˆ†‹•–”‹„—–‹‘ǡ‘”–Š‡‘‡›••‘”‡…‡‹˜‡†„›–Š‡ǤŠ‡’‘”–‹‘‘ˆ–Š‡
†‹•–”‹„—–‹‘ ™Š‹…Š ‹• ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ ƒ……——Žƒ–‡† ’”‘ϐ‹–• ‘ˆ –Š‡ …‘’ƒ› ‹• –‘ „‡ –”‡ƒ–‡† ƒ• †‹˜‹†‡†
‹…‘‡‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”—†‡”•‡…–‹‘ʹȋʹʹȌȋ…Ȍǡ™Š‹…Š‹••—„Œ‡…––‘†‹˜‹†‡††‹•–”‹„—–‹‘–ƒš‹–Š‡Šƒ†•
‘ˆ–Š‡…‘’ƒ›ǤŠ‡•ƒ‡™‹ŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡ƒ‘—–”‡…‡‹˜‡†Ȁˆƒ‹”ƒ”‡–˜ƒŽ—‡ˆ‘”–Š‡’—”’‘•‡‘ˆ
†‡–‡”‹‹‰–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”…‘’—–ƒ–‹‘‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•Ǥ
ƒ’‹–ƒŽ‰ƒ‹•–ƒš‘•—„•‡“—‡–•ƒŽ‡„›–Š‡•Šƒ”‡Š‘Ž†‡”•ǣˆ–Š‡•Šƒ”‡Š‘Ž†‡”ǡƒˆ–‡””‡…‡‹’–‘ˆƒ›•—…Šƒ••‡–‘Ž‹“Ǧ
—‹†ƒ–‹‘‘ˆ–Š‡…‘’ƒ›ǡ–”ƒ•ˆ‡”•‹–ǡ–Š‡ ƒ‹”ƒ”‡–˜ƒŽ—‡‘–Š‡†ƒ–‡‘ˆ†‹•–”‹„—–‹‘™‘—Ž†„‡–”‡ƒ–‡†ƒ•…‘•–‘ˆ
ƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–Ǥ

CAPITAL GAINS ON BUYBACK OF SHARES OR SPECIFIED SECURITIES [SECTION 46A]

(1)  …ƒ•‡ ‘ˆ •’‡…‹ϐ‹‡† •‡…—”‹–‹‡• ‘–Š‡” –Šƒ •Šƒ”‡•ǣ › …‘•‹†‡”ƒ–‹‘ ”‡…‡‹˜‡† „› ƒ Š‘Ž†‡” ‘ˆ •’‡…‹ϐ‹‡†
•‡…—”‹–‹‡•ȋ‘–Š‡”–Šƒ•Šƒ”‡•Ȍˆ”‘ƒ›…‘’ƒ›‘’—”…Šƒ•‡‘ˆ‹–••’‡…‹ϐ‹‡†•‡…—”‹–‹‡•‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
‹–Š‡Šƒ†•‘ˆ–Š‡Š‘Ž†‡”‘ˆ•’‡…‹ϐ‹‡†•‡…—”‹–‹‡•ǤŠ‡†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘ƒ†–Š‡˜ƒŽ—‡
‘ˆ…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†„›–Š‡Š‘Ž†‡”‘ˆ•‡…—”‹–‹‡•‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•…ƒ’‹–ƒŽ‰ƒ‹•‹Š‹•Šƒ†•ǤŠ‡
…‘’—–ƒ–‹‘‘ˆ…ƒ’‹–ƒŽ‰ƒ‹••ŠƒŽŽ„‡ƒ†‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͺǤ
 —…Š…ƒ’‹–ƒŽ‰ƒ‹••ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡‹–Š‡›‡ƒ”‹™Š‹…Š•—…Š•‡…—”‹–‹‡•™‡”‡’—”…Šƒ•‡†„›–Š‡…‘’ƒ›Ǥ
‘”–Š‹•’—”’‘•‡ǡDz•’‡…‹ϐ‹‡†•‡…—”‹–‹‡•dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ•‰‹˜‡‹‡…–‹‘͸ͺ‘ˆ–Š‡‘’ƒ‹‡•
…–ǡʹͲͳ͵ǡDz•’‡…‹ϐ‹‡†•‡…—”‹–‹‡•dz‹…Ž—†‡•‡’Ž‘›‡‡•ǯ•–‘…‘’–‹‘‘”‘–Š‡”•‡…—”‹–‹‡•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›
–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ”‘–‹‡–‘–‹‡Ǥ
Note Ȃ‹–Š‡ˆˆ‡…–ˆ”‘ͷǤ͹ǤʹͲͳͻǡƒ•ˆƒ”ƒ••Šƒ”‡•ƒ”‡…‘…‡”‡†ǡ–Š‹•’”‘˜‹•‹‘™‘—Ž†„‡ƒ––”ƒ…–‡†‹–Š‡
Šƒ†•‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”‘Ž›‹ˆ–Š‡•Šƒ”‡•ƒ”‡„‘—‰Š–„ƒ…„›ƒ…‘’ƒ›ǡ‘–Š‡”–Šƒƒ†‘‡•–‹……‘’ƒ›Ǥ
”‹‘”–‘–Šƒ–†ƒ–‡ǡ–Š‹•’”‘˜‹•‹‘™ƒ•ƒ––”ƒ…–‡†‡˜‡‹–Š‡Šƒ†•‘ˆ•Šƒ”‡Š‘Ž†‡”•‘ˆ†‘‡•–‹……‘’ƒ›ǡ™Š‡”‡
Ž‹•–‡†•Šƒ”‡•™‡”‡„‘—‰Š–„ƒ…Ǥ
(2) In case of shares (whether listed or unlisted): ‹–Š ‡ˆˆ‡…– ˆ”‘ ͷǤ͹ǤʹͲͳͻǡ ‹ …ƒ•‡ ‘ˆ „—›„ƒ… ‘ˆ •Šƒ”‡•
ȋ™Š‡–Š‡”Ž‹•–‡†‘”—Ž‹•–‡†Ȍ„›†‘‡•–‹……‘’ƒ‹‡•ǡƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš̷ʹͲΨȋ’Ž—••—”…Šƒ”‰‡̷ͳʹΨ
ƒ†…‡••̷ͶΨȌ‹•Ž‡˜‹ƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡…‘’ƒ›Ǥ
‘•‡“—‡–Ž›ǡ–Š‡‹…‘‡ƒ”‹•‹‰–‘–Š‡•Šƒ”‡Š‘Ž†‡”•‹”‡•’‡…–‘ˆ•—…Š„—›„ƒ…‘ˆ•Šƒ”‡•„›–Š‡†‘‡•–‹……‘’ƒ›
™‘—Ž†„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋ͵ͶȌǡ•‹…‡–Š‡†‘‡•–‹……‘’ƒ›‹•Ž‹ƒ„Ž‡–‘’ƒ›ƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš‘–Š‡
„—›„ƒ…‘ˆ•Šƒ”‡•Ǥ

MODE OF COMPUTATION
‡…–‹‘Ͷͺ‘ˆ–Š‡…–’”‘˜‹†‡•–Šƒ––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz…ƒ’‹–ƒŽ‰ƒ‹•dz•ŠƒŽŽ„‡…‘’—–‡†„›†‡Ǧ
†—…–‹‰ˆ”‘–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡––Š‡
ˆ‘ŽŽ‘™‹‰ƒ‘—–•Ȃ

ȋƒȌ –Š‡‡š’‡†‹–—”‡ȏ‘†‡†—…–‹‘™‹ŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒšȋ’ƒ‹†ȌȐ‹…—””‡†
™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›‹…‘‡…–‹‘™‹–Š•—…Š–”ƒ•ˆ‡”Ǣ
ȋ„Ȍ –Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ƒ†–Š‡…‘•–‘ˆƒ›‹’”‘˜‡‡––Š‡”‡–‘
 Lesson 4 Ȉ Part IV - Income from Capital Gains 257

‘™‡˜‡”ǡ‹–Š‡…ƒ•‡‘ˆƒƒ••‡••‡‡™Š‘‹•ƒ‘Ǧ”‡•‹†‡–ǡ…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡ
„‡‹‰•Šƒ”‡•‹ǡ‘”†‡„‡–—”‡•‘ˆǡƒ†‹ƒ…‘’ƒ›•ŠƒŽŽ„‡…‘’—–‡†„›…‘˜‡”–‹‰–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘ǡ‡šǦ
’‡†‹–—”‡‹…—””‡†™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›‹…‘‡…–‹‘™‹–Š•—…Š–”ƒ•ˆ‡”ƒ†–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘
”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–‹–‘–Š‡•ƒ‡ˆ‘”‡‹‰…—””‡…›ƒ•™ƒ•‹‹–‹ƒŽŽ›
—–‹Ž‹•‡†‹–Š‡’—”…Šƒ•‡‘ˆ–Š‡•Šƒ”‡•‘”†‡„‡–—”‡•ǡƒ†–Š‡…ƒ’‹–ƒŽ‰ƒ‹••‘…‘’—–‡†‹•—…Šˆ‘”‡‹‰…—””‡…›
•ŠƒŽŽ„‡”‡…‘˜‡”–‡†‹–‘†‹ƒ…—””‡…›Ǥ
Š‡ ‹ƒ…‡…–ǡͳͻͻ͹Šƒ•™‹–Š‡ˆˆ‡…–ˆ”‘ͳǤͶǤͳͻͻͺ†‡‹‡†–Š‡„‡‡ϐ‹–‘ˆ‹†‡šƒ–‹‘‘ˆ…‘•–‘ˆ„‘†•ƒ††‡„‡–—”‡•
‘–Š‡”–Šƒ‹†‡š‡†„‘†•‹••—‡†„›–Š‡‰‘˜‡”‡–Ǥ
”‘˜‹†‡†ƒŽ•‘–Šƒ–™Š‡”‡•Šƒ”‡•ǡ†‡„‡–—”‡•‘”™ƒ””ƒ–•”‡ˆ‡””‡†–‘‹–Š‡’”‘˜‹•‘–‘Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ‡…–‹‘Ͷ͹ƒ”‡
–”ƒ•ˆ‡””‡†—†‡”ƒ‰‹ˆ–‘”ƒ‹””‡˜‘…ƒ„Ž‡–”—•–ǡ–Š‡ƒ”‡–˜ƒŽ—‡‘–Š‡†ƒ–‡‘ˆ•—…Š–”ƒ•ˆ‡”•ŠƒŽŽ„‡†‡‡‡†–‘„‡
–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–”ƒ•ˆ‡”ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘Ǥ
Š‡Šƒ•”‡…‡–Ž›’‡”‹––‡††‹ƒ…‘”’‘”ƒ–‡–‘‹••—‡”—’‡‡†‡‘‹ƒ–‡†„‘†•‘—–•‹†‡†‹ƒƒ•ƒ‡ƒ•—”‡–‘
‡ƒ„Ž‡†‹ƒ…‘”’‘”ƒ–‡–‘”ƒ‹•‡ˆ—†•ˆ”‘‘—–•‹†‡†‹ƒǤ ‘”’”‘˜‹†‹‰”‡Ž‹‡ˆ–‘‘Ǧ”‡•‹†‡–•™Š‘„‡ƒ””‹•‘ˆ
…—””‡…›ϐŽ—…–—ƒ–‹‘ǡ™Ǥ‡ǤˆǤʹͲͳ͹Ǧͳͺǡ•‡…–‹‘ͶͺŠƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ–…ƒ’‹–ƒŽ‰ƒ‹ǡƒ”‹•‹‰‹…ƒ•‡‘ˆ
ƒ’’”‡…‹ƒ–‹‘‘ˆ”—’‡‡„‡–™‡‡–Š‡†ƒ–‡‘ˆ‹••—‡ƒ†–Š‡†ƒ–‡‘ˆ”‡†‡’–‹‘ƒ‰ƒ‹•––Š‡ˆ‘”‡‹‰…—””‡…›‹™Š‹…Š
‹˜‡•–‡–‹•ƒ†‡ǡ•ŠƒŽŽ„‡‡š‡’–ˆ”‘–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•Ǥ
‡‡ϐ‹–‘ˆ†‡šƒ–‹‘•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡…ƒ•‡‘ˆŽ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆ‘˜‡”‡‹‰
‘Ž†
‘†•Ǥ
‘”–Š‹•’—”’‘•‡ǣ
ȋ‹Ȍ Dzforeign currencydzƒ†DzIndian currencydzŠƒ˜‡–Š‡‡ƒ‹‰•”‡•’‡…–‹˜‡Ž›ƒ••‹‰‡†–Š‡”‡–‘‹‡…–‹‘ʹ‘ˆ
–Š‡ ‘”‡‹‰š…Šƒ‰‡ƒƒ‰‡‡–…–ǡͳͻͻͻǡƒ†
ȋ‹‹Ȍ –Š‡…‘˜‡”•‹‘‘ˆ†‹ƒ…—””‡…›‹–‘ˆ‘”‡‹‰…—””‡…›ƒ†–Š‡”‡Ǧ…‘˜‡”•‹‘‘ˆˆ‘”‡‹‰…—””‡…›‹–‘†‹ƒ
…—””‡…›•ŠƒŽŽ„‡ƒ––Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡’”‡•…”‹„‡†‹–Šƒ–„‡ŠƒŽˆǢ
ȋ‹‹‹Ȍ Dzindexed cost of acquisitiondz‡ƒ•ƒƒ‘—–™Š‹…Š„‡ƒ”•–‘–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘–Š‡•ƒ‡’”‘’‘”–‹‘
ƒ•‘•–ϐŽƒ–‹‘†‡šˆ‘”–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‹•–”ƒ•ˆ‡””‡†„‡ƒ”•–‘–Š‡‘•–ϐŽƒ–‹‘†‡šˆ‘”–Š‡
ϐ‹”•–›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–™ƒ•Š‡Ž†„›–Š‡ƒ••‡••‡‡‘”ˆ‘”–Š‡›‡ƒ”„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽʹͲͲͳ
™Š‹…Š‡˜‡”‹•Žƒ–‡”Ǣ
ȋ‹˜Ȍ Dzindexed cost of improvementdz ‡ƒ• ƒ ƒ‘—– ™Š‹…Š „‡ƒ”• –‘ –Š‡ …‘•– ‘ˆ ‹’”‘˜‡‡– –Š‡ •ƒ‡
’”‘’‘”–‹‘ƒ•‘•–ϐŽƒ–‹‘†‡šˆ‘”–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‹•–”ƒ•ˆ‡””‡†„‡ƒ”•–‘–Š‡‘•–ϐŽƒ–‹‘
†‡šˆ‘”–Š‡›‡ƒ”‹™Š‹…Š–Š‡‹’”‘˜‡‡––‘–Š‡ƒ••‡––‘‘’Žƒ…‡Ǣƒ†
ȋ˜Ȍ Dz…‘•– ‹ϐŽƒ–‹‘ ‹†‡šdzǡ ‹ ”‡Žƒ–‹‘ –‘ ƒ ’”‡˜‹‘—• ›‡ƒ”ǡ ‡ƒ• •—…Š †‡š ƒ• –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ›ǡ
Šƒ˜‹‰”‡‰ƒ”†–‘•‡˜‡–›Ǧϐ‹˜‡’‡”…‡–‘ˆƒ˜‡”ƒ‰‡”‹•‡‹–Š‡‘•—‡””‹…‡†‡šȋ—”„ƒȌ–Š‡‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰’”‡˜‹‘—•›‡ƒ”–‘•—…Š’”‡˜‹‘—•›‡ƒ”ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ•’‡…‹ˆ›‹–Š‹•„‡ŠƒŽˆǤ
ȋ‡ˆ‡”–‘‘•–ϐŽƒ–‹‘†‡šȋȌƒ„Ž‡„‡Ž‘™Ȍ

FY CII
ʹͲͲͳǦͲʹ ͳͲͲ
ʹͲͲʹǦͲ͵ ͳͲͷ
ʹͲͲ͵ǦͲͶ ͳͲͻ
ʹͲͲͶǦͲͷ ͳͳ͵
ʹͲͲͷǦͲ͸ ͳͳ͹
ʹͲͲ͸ǦͲ͹ ͳʹʹ
ʹͲͲ͹ǦͲͺ ͳʹͻ
ʹͲͲͺǦͲͻ ͳ͵͹
ʹͲͲͻǦͳͲ ͳͶͺ
ʹͲͳͲǦͳͳ ͳ͸͹
 258 Lesson 4 Ȉ EP-TL

ʹͲͳͳǦͳʹ ͳͺͶ
ʹͲͳʹǦͳ͵ ʹͲͲ
ʹͲͳ͵ǦͳͶ ʹʹͲ
ʹͲͳͶǦͳͷ ʹͶͲ
ʹͲͳͷǦͳ͸ ʹͷͶ
ʹͲͳ͸Ǧͳ͹ ʹ͸Ͷ
ʹͲͳ͹Ǧͳͺ ʹ͹ʹ
ʹͲͳͺǦͳͻ ʹͺͲ
ʹͲͳͻǦʹͲ ʹͺͻ
ʹͲʹͲǦʹͳ ͵Ͳͳ
2021-22 ͵ͳ͹
‘•–‘ˆƒ…“—‹•‹–‹‘•ŠƒŽŽŠƒ˜‡–‘„‡ƒ†Œ—•–‡†„›–Š‡‘•–ϐŽƒ–‹‘†‡š–‘ƒ””‹˜‡ƒ––Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘Ǥ
Note:
ƒ•‡›‡ƒ”ˆ‘”–Š‡’—”’‘•‡ˆ‘”…ƒŽ…—Žƒ–‹‘‘ˆ†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘‘”‹’”‘˜‡‡–Šƒ•„‡‡•Š‹ˆ–‡†ˆ”‘ͳͻͺͳǦ
ͺʹ–‘ʹͲͲͳǦʹͲͲʹǤ……‘”†‹‰Ž›ǡ‹ˆƒ›ƒ••‡•‡‡Ȁ’”‡˜‹‘—•‘™‡”Šƒ•ƒ…“—‹”‡†…ƒ’‹–ƒŽƒ••‡–’”‹‘”–‘ͳǦͶǦʹͲͲͳ–Š‡Š‡
™‹ŽŽ Šƒ˜‡ ‘’–‹‘ –‘ …Š‘‘•‡ ƒ…–—ƒŽ …‘•– ‘ˆ ƒ…“—‹•‹–‹‘ ‘”  ƒ• ‘ ͳǦͶǦʹͲͲͳ ƒ• Š‹• …‘•– ‘ˆ ƒ…“—‹•‹–‹‘Ǥ ‘•– ‘ˆ
‹’”‘˜‡‡–‹…—””‡†„›ƒ••‡••‡‘”’”‡˜‹‘—•‘™‡”’”‹‘”–‘ͳǦͶǦʹͲͲͳ•ŠƒŽŽ„‡–ƒ‡ƒ•Ǥ…ƒ•‡‘ˆ‰‘‘†™‹ŽŽǡ
–”ƒ†‡ƒ”‘”‘–Š‡”‹–ƒ‰‹„Ž‡ƒ••‡–•ǡ–Š‡‘’–‹‘–‘–ƒ‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘”ƒ”‡–’”‹…‡™Š‹…Š‡˜‡”‹•Š‹‰Š‡”‹•
‘–ƒ˜ƒ‹Žƒ„Ž‡ȋƒ•‘ͲͳǤͲͶǤʹͲͲͳȌǡ‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”‹–ǯ•’—”…Šƒ•‡†‘”•‡Žˆ‰‡‡”ƒ–‡†Ǥ
COST OF ACQUISITION
”‡Žƒ–‹‘–‘ƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰‰‘‘†™‹ŽŽ‘ˆƒ„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ‘”ƒ–”ƒ†‡ƒ”‘”„”ƒ†ƒ‡ƒ••‘…‹ƒ–‡†
™‹–Šƒ„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ‘”ƒ”‹‰Š––‘ƒ—ˆƒ…–—”‡ǡ’”‘†—…‡‘”’”‘…‡••ƒ›ƒ”–‹…Ž‡‘”–Š‹‰ǡ‘””‹‰Š––‘…ƒ””›‘
ƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ‘”–‡ƒ…›”‹‰Š–•ǡ‘”•–ƒ‰‡…ƒ””‹ƒ‰‡’‡”‹–•ǡ‘”Ž‘‘Š‘—”•ǡȄ
ȋ‹Ȍ ‹–Š‡…ƒ•‡‘ˆƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–„›–Š‡ƒ••‡••‡‡„›’—”…Šƒ•‡ˆ”‘ƒ’”‡˜‹‘—•‘™‡”ǡ‡ƒ•–Š‡ƒ‘—–
‘ˆ–Š‡’—”…Šƒ•‡’”‹…‡Ǣƒ†
ȋ‹‹Ȍ ‹–Š‡…ƒ•‡ˆƒŽŽ‹‰—†‡”•—„Ǧ…Žƒ—•‡•ȋ‹Ȍ–‘ȋ‹˜Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘Ͷͻƒ†™Š‡”‡•—…Šƒ••‡–™ƒ•
ƒ…“—‹”‡†„›–Š‡’”‡˜‹‘—•‘™‡”ȋƒ•†‡ϐ‹‡†‹–Šƒ–•‡…–‹‘Ȍ„›’—”…Šƒ•‡ǡ‡ƒ•–Š‡ƒ‘—–‘ˆ–Š‡’—”…Šƒ•‡
’”‹…‡ˆ‘”•—…Š’”‡˜‹‘—•‘™‡”Ǣƒ†
ȋ‹‹‹Ȍ ‹ƒ›‘–Š‡”…ƒ•‡ǡ•ŠƒŽŽ„‡–ƒ‡–‘„‡‹Žǣ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰‰‘‘†™‹ŽŽ‘ˆƒ„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ‹”‡•’‡…–‘ˆ™Š‹…Šƒ†‡†—…–‹‘
‘ƒ……‘—–‘ˆ†‡’”‡…‹ƒ–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵ʹŠƒ•„‡‡‘„–ƒ‹‡†„›–Š‡ƒ••‡••‡‡‹ƒ›’”‡˜‹‘—•
›‡ƒ”’”‡…‡†‹‰–Š‡’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ
–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ…Žƒ—•‡•ȋ‹Ȍƒ†ȋ‹‹Ȍ•ŠƒŽŽƒ’’Ž›™‹–Š–Š‡‘†‹ϐ‹…ƒ–‹‘–Šƒ––Š‡–‘–ƒŽƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘‘„Ǧ
–ƒ‹‡†„›–Š‡ƒ••‡••‡‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵ʹ„‡ˆ‘”‡–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘–Š‡ͳ•–†ƒ›
‘ˆ’”‹ŽǡʹͲʹͳ•ŠƒŽŽ„‡”‡†—…‡†ˆ”‘–Š‡ƒ‘—–‘ˆ’—”…Šƒ•‡’”‹…‡Ǥ[Inserted by Finance Act, 2021]

…ƒ•‡‘ˆƒ…ƒ’‹–ƒŽƒ••‡–„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡ–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ•—…Šƒ••‡–‘–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡ
ʹͲͲͳǡ•ŠƒŽŽ‘–‡š…‡‡†–Š‡•–ƒ’†—–›˜ƒŽ—‡ǡ™Š‡”‡˜‡”ƒ˜ƒ‹Žƒ„Ž‡ǡ‘ˆ•—…Šƒ••‡–ƒ•‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͳǤ
Explanation: ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•’”‘˜‹•‘ǡDz•–ƒ’†—–›˜ƒŽ—‡dz‡ƒ•–Š‡˜ƒŽ—‡ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••Ǧ
ƒ„Ž‡„›ƒ›ƒ—–Š‘”‹–›‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–ˆ‘”–Š‡’—”’‘•‡‘ˆ’ƒ›‡–‘ˆ•–ƒ’†—–›
‹”‡•’‡…–‘ˆƒ‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 259

Cost of Acquisition of Certain Assets

Asset Cost of Acquisition

‘‘†™‹ŽŽǡ‹ˆ‡ŽˆǦ
‡‡”ƒ–‡† 

‘‘†™‹ŽŽǡ‹ˆƒ…“—‹”‡† —”…Šƒ•‡”‹…‡

‹ˆ–Ȁ‹Š‡”‹–ƒ…‡Ȁ†‹•–”‹„—–‹‘‘ˆƒ••‡–•‘ˆ ‘’ƒ”–‹–‹‘ ‘•––‘–Š‡’”‡˜‹‘—•‘™‡”
•–
‘—•Šƒ”‡•ƒŽŽ‘––‡†’”‹‘”–‘ͳ ’”‹ŽʹͲͲͳ ȋͳ•–’”‹ŽʹͲͲͳȌ
‘—•Šƒ”‡•ƒŽŽ‘––‡†’‘•–ͳ•–’”‹ŽʹͲͲͳ 
‹‰Š–•Šƒ”‡• ‘—–’ƒ‹†–‘ƒ…“—‹”‡–Š‡•Šƒ”‡•
‹‰Š–••Šƒ”‡•™Š‹…Šƒ”‡’—”…Šƒ•‡†„›’‡”•‘‹ ™Š‘•‡ˆƒ˜‘—”–Š‡ —”…Šƒ•‡’”‹…‡’ƒ‹†–‘–Š‡”‡‘—…‡”Ϊ”‹…‡
ƒ••‡••‡‡Šƒ•”‡‘—…‡†–Š‡”‹‰Š–•‡–‹–Ž‡‡– ’ƒ‹†ˆ‘” ƒ…“—‹”‹‰”‹‰Š–••Šƒ”‡•

‘•–‘ˆƒ…“—‹•‹–‹‘ˆ‘”•–‘…‹–”ƒ†‡…‘˜‡”–‡†‹–‘…ƒ’‹–ƒŽƒ••‡–ǡ•ŠƒŽŽ„‡–Š‡ ƒ‹”ƒ”‡–ƒŽ—‡Ǥ

Illustration 1:
”Ǥƒ‰‡†”ƒ—ƒ”…‘˜‡”–•Š‹•…ƒ’‹–ƒŽƒ••‡–ƒ…“—‹”‡†ˆ‘”ƒƒ‘—–‘ˆͳʹͷͲͲͲ‹ʹͲͲͷǦͲ͸ǡ‹–‘•–‘…‹
–”ƒ†‡‹–Š‡ ʹͲͳ͸Ǧͳ͹Ǥ‡–Š‡”‡ƒˆ–‡”•‡ŽŽ•–Š‹•ƒ••‡–ˆ‘”ͳͲǡͲͲǡͲͲͲ‹ʹͲʹͳǦʹʹǤŽ‡ƒ•‡ƒ†˜‹•‡‘–Š‡–ƒšƒ„‹Ž‹–›Ǥ
Solution:
–‹•–‘„‡‘–‡†–Šƒ–™Š‡–Š‡‘™‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡ…‘˜‡”–•‹–‹–‘•–‘…‹–”ƒ†‡ǡ–Š‡Dz…ƒ’‹–ƒŽ‰ƒ‹•dzƒ”‹•‡•
‹–Š‡›‡ƒ”‘ˆ•—…Š…‘˜‡”•‹‘ǡ–Šƒ–‹•”‡‰ƒ”†‡†ƒ•–”ƒ•ˆ‡”ǡ‹Ǥ‡Ǥǡ‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡–”ƒ•ˆ‡”ȋ…‘˜‡”•‹‘Ȍ
™ƒ•‡ˆˆ‡…–‡†ǤŠ‡”‡ˆ‘”‡ǡ‹–Š‹•…ƒ•‡–Š‡ƒ’‹–ƒŽ
ƒ‹•ƒ”‹•‡•‹ ʹͲͳ͸Ǧͳ͹Ǥ‘™‡˜‡”ǡ–Š‡•ƒ‡™‹ŽŽ„‡–ƒšƒ„Ž‡
‘Ž›‹–Š‡›‡ƒ”–Š‡ƒ••‡–™ƒ••‘Ž†ǡƒ†ƒŽ‘‰™‹–Š‹–•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǡ–Š‡”‡Ž‡˜ƒ–‹…‘‡—†‡”–Š‡
Š‡ƒ†Dz”‘ϐ‹–•Ȁ
ƒ‹•ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘dzǤ
Particulars INR
‘ˆƒ••‡–‘†ƒ–‡‘ˆ…‘˜‡”•‹‘ ͹ǡͷͲǡͲͲͲ
†‡š‡†‘•–‘ˆƒ…“—‹•‹–‹‘ȏ‡‡‘–‡ͳȐ ʹǡͺʹǡͲͷͳ
ƒ’‹–ƒŽ
ƒ‹ƒ”‹•‡•‹ ʹͲͳ͸Ǧͳ͹ Ͷǡ͸͹ǡͻͶͻ
‹ƒŽŽ›•‘Ž†ˆ‘” ͳͲǡͲͲǡͲͲͲ
‘•–‘ˆ…“—‹•‹–‹‘ ͹ǡͷͲǡͲͲͲ
—•‹‡••…‘‡ƒ”‹•‡•‹ ʹͲʹͳǦʹʹ ʹǡͷͲǡͲͲͲ
Note:
ͳȌ †‡š‡†‘•–‘ˆ…“—‹•‹–‹‘‹•ͳʹͷͲͲͲȀͳͳ͹ȗʹ͸Ͷȋ”‡ˆ‡”–‘–Š‡–ƒ„Ž‡ˆ‘”–Š‡‹†‹…‡•‘ˆ”‡•’‡…–‹˜‡›‡ƒ”•ȌǤ
ʹȌ Š‡ƒ’‹–ƒŽ
ƒ‹ƒ”‹•‡•‹ ʹͲͳ͸Ǧͳ͹Ǥ
͵Ȍ Š‡ƒ’‹–ƒŽ
ƒ‹‹•–ƒšƒ„Ž‡‘Ž›‹ ʹͲʹͳǦʹʹ™Š‡–Š‡ƒ••‡–‹••‘Ž†ǡƒŽ‘‰™‹–Š–Š‡—•‹‡••…‘‡Ǥ

Illustration 2:
””‹‹˜ƒ•ƒǡ’—”…Šƒ•‡•ʹͲͲͲ‡“—‹–›•Šƒ”‡•‹–†Ǥǡˆ‘”ͷͲ’‡”•Šƒ”‡ȋ”‘‡”ƒ‰‡ͳΨȌǡ‹ ‡„ͳͻͻ͹Ǥ
‡‰‡–•ʹͲͲ‘—••Šƒ”‡•‹‡’–‡„‡”ǡʹͲͲͲǤ‡ƒ‰ƒ‹‰‡–•ʹʹͲͲ„‘—••Šƒ”‡•‹‡’–‡„‡”ǡʹͲͲ͹Ǥ ‘ˆ
–Š‡Šƒ”‡•‘ͳ•–’”‹ŽǡʹͲͲͳ™ƒ•ͳʹͷǤ
 ƒ—ƒ”›ǡʹͲʹʹǡŠ‡•‡ŽŽ•ƒŽŽ–Š‡•Šƒ”‡•ˆ‘”ͷͲͲ’‡”•Šƒ”‡ȋ”‘‡”ƒ‰‡ʹΨȌǤ
‘’—–‡–Š‡ƒ’‹–ƒŽ
ƒ‹•ƒš‹–Š‡Šƒ†•‘ˆ”Ǥ”‹‹˜ƒ•ƒ‹ ʹͲʹͳǦʹʹǤ

Solutionǣ
 260 Lesson 4 Ȉ EP-TL

Cost of Acquisition Nos. Per Share Total INR

”‹‰‹ƒŽ ʹǡͲͲͲ ͷͲǤͷͲ ͳǡͲͳǡͲͲͲ
•–
‘—•Šƒ”‡•’”‹‘”–‘ͳ ’”‹ŽǡʹͲͲͳ ʹͲͲ Ǧ ʹͷǡͲͲͲ
•–
‘—•Šƒ”‡’‘•–ͳ ’”‹ŽǡʹͲͲͳ ʹǡʹͲͲ Ǧ Ǧ
—ŽŽ˜ƒŽ—‡‘ˆ‘•‹†‡”ƒ–‹‘ ͶǡͶͲͲ ͶͻͲǤͲͲ ʹͳǡͷ͸ǡͲͲͲ
†‡š‡†‘•–‘ˆ…“—‹•‹–‹‘
”‹‰‹ƒŽȋʹͲͲͲšͳʹͷš͵ͳ͹ȀͳͲͲȌ ͹ǡͻʹǡͷͲͲ
‘—•ȋʹͲͲšͳʹͷš͵ͳ͹ȀͳͲͲȌ ͹ͻǡʹͷͲ ȋͺǡ͹ͳǡ͹ͷͲȌ
Capital Gains (Long Term) 12,84,250

Note:
Ȉ Š‡„”‘‡”ƒ‰‡‹•‡––‡†ƒ‰ƒ‹•––Š‡…‘•–•ƒ†•ƒŽ‡•˜ƒŽ‡•
Ȉ Š‡‘•–‘ˆ…“—‹•‹–‹‘‘ˆ‘—•Šƒ”‡•ƒ…“—‹”‡†’”‹‘”–‘ͳ•–’”‹ŽǡʹͲͲͳ‹•–Š‡ ‘ͳ•–’”‹ŽǡʹͲͲͳƒ†
ˆ‘”–Š‡‘‡•ƒ…“—‹”‡†’‘•–ͳ•–’”‹ŽǡʹͲͲͳ‹•
Ȉ ‘”–Š‡”‹‰‹ƒŽŠƒ”‡•ǡ•‹…‡–Š‡ƒ…“—‹•‹–‹‘…‘•–ȋͷͲȌ‹•Ž‡••–Šƒ–Š‡ ȋͳʹͷȌƒ•‘ͳ•–’”‹Žǡ
ʹͲͲͳǡ–Š‡ ƒ•‘ͳ•–’”‹ŽǡʹͲͲͳ‹•…‘•‹†‡”‡†ˆ‘”…‘’—–‹‰–Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘
Ȉ ‡ˆ‡”–‘–Š‡–ƒ„Ž‡•ˆ‘”–Š‡†‹…‡•—•‡†‹–Š‡…‘’—–ƒ–‹‘

COST OF IMPROVEMENT
‡…–‹‘ͷͷ‡–‹‘•–Šƒ–‹”‡Žƒ–‹‘–‘ƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰‰‘‘†™‹ŽŽǡ‘”ƒ”‹‰Š–ǡ–Š‡…‘•–‘ˆ‹’”‘˜‡‡–™‹ŽŽ„‡
–ƒ‡ƒ•Ǥ ‘”ƒ›‘–Š‡”…ƒ’‹–ƒŽƒ••‡–ǣ
ƒȌ ‘•–‘ˆ‹’”‘˜‡‡–ǡ’”‹‘”–‘ͳ•–’”‹ŽǡʹͲͲͳ•ŠƒŽŽ„‡‹Ž
„Ȍ ‘•–‘ˆ‹’”‘˜‡‡–•ŠƒŽŽ„‡ƒŽŽ‡š’‡†‹–—”‡‘ˆƒ…ƒ’‹–ƒŽƒ–—”‡ǡ‹…—””‡†‹ƒ‹‰ƒ††‹–‹‘•ȀƒŽ–‡”ƒ–‹‘•
‘‘”ƒˆ–‡”ͲͳǤͲͶǤʹͲͲͳǤ

ŽŽ—•–”ƒ–‹‘͵ǣ
Ƭ•‘•ǡ ǡŠƒ†’—”…Šƒ•‡†ƒŽƒ†ˆ‘”ͳͷͲǡͲͲͲ‹ʹͲͲʹǦͲ͵Ǥ–Š‡ʹͲͲ͸ǦͲ͹ǡƒ’ƒ”–‹–‹‘–ƒ‡•’Žƒ…‡ƒ†
–Š‡‘’ƒ”…‡‡”ǡ”Ǥǡ‰‡–•–Š‹•’Ž‘–ǡ˜ƒŽ—‡†ƒ–ʹǡͲͲǡͲͲͲǤʹͲͲ͹ǦͲͺǡŠ‡‹…—”•‡š’‡•‡•‘ˆʹǡͷͲǡͲͲͲ
‘–Š‡’Ž‘––‘™ƒ”†•ˆ‡…‹‰‘ˆ–Š‡’Ž‘–‘ˆŽƒ†Ǥ”Ǥ–Š‡•‡ŽŽ•–Š‹•’Ž‘–ƒ–ͳͷǡͲͲǡͲͲͲ‹ʹͲʹͳǦʹʹǤ‘—ƒ”‡
”‡“—‹”‡†–‘…‘’—–‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ˆ‘”ʹͲʹʹǦʹ͵Ǥ

Solution:

Particulars (Rs.)
‘•–‘ˆƒ…“—‹•‹–‹‘ ͳǡͷͲǡͲͲͲ
‘•–‘ˆ’”‘˜‡‡– ʹǡͷͲǡͲͲͲ
—ŽŽƒŽ—‡‘ˆ‘•‹†‡”ƒ–‹‘ ͳͷǡͲͲǡͲͲͲ
†‡š‡†‘•–
…“—‹•‹–‹‘ȏ‡‡‘–‡ȋ„ȌȐ ȋͶǡͷʹǡͺͷ͹Ȍ
’”‘˜‡‡–ȏ‡‡‘–‡ȋ…ȌȐ ȋ͸ǡͳͶǡ͵ͶͳȌ
Capital Gains Ͷǡ͵ʹǡͺͲʹ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 261

Note:
ƒȌ Ž–Š‘—‰Š–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘ˆ‘”–Š‡Žƒ†ǡ‹…ƒ•‡‘ˆ’ƒ”–‹–‹‘‘ˆ ™‘—Ž†„‡–Š‡…‘•––‘–Š‡’”‡˜‹‘—•
‘™‡”ǡ–Š‡›‡ƒ”™‘—Ž†„‡–Š‡›‡ƒ”‹™Š‹…ŠŠ‡‰‡–•–Š‡ƒ••‡–—’‘’ƒ”–‹–‹‘ǡ–Šƒ–‹• ʹͲͲ͸ǦͲ͹
„Ȍ †‡š‡†‘•–‘ˆ…“—‹•‹–‹‘–Š‡”‡ˆ‘”‡‹•ȋͳǡͷͲǡͲͲͲȀͳͲͷȌȗ͵ͳ͹αͶǡͷʹǡͺͷ͹
…Ȍ †‡š‡†‘•–‘ˆ’”‘˜‡‡––Š‡”‡ˆ‘”‡‹•ȋʹǡͷͲǡͲͲͲȀͳʹͻȌȗ͵ͳ͹α͸ǡͳͶǡ͵Ͷͳ

Illustration 4:
”Ǥ’—”…Šƒ•‡•ƒ’”‘’‡”–›ˆ‘”ͷͲǡͲͲͲ‘͵”†ƒ›ͳͻ͹ͷǤŠ‡ˆ‘ŽŽ‘™‹‰‡š’‡•‡•™‡”‡‹…—””‡†„›Š‹ǣ
Ȉ ’”‘˜‡‡–‘ˆ’”‘’‡”–›‹ͳͻͻͺǦͻͻʹǡͷͲǡͲͲͲ
Ȉ ‘•–”—…–‹‘‘ˆ–™‘ϐŽ‘‘”•‹ʹͲͲʹǦͲ͵ͺǡͲͲǡͲͲͲ
Ȉ ‡…‘•–”—…–‹‘ƒ†”‡ˆ—”„‹•Š‡–‘ˆ’”‘’‡”–›‹ʹͲͳʹǦͳ͵ͳͷǡͲͲǡͲͲͲ
‘ˆ’”‘’‡”–›‘ͳ•–’”‹ŽǡʹͲͲͳ‹•ͳͲǡͲͲǡͲͲͲǤ‡•‡ŽŽ•–Š‡Š‘—•‡‘ͻ–Š‡’–‡„‡”ǡʹͲʹͳˆ‘”ͻͲǡͲͲǡͲͲͲƒ†
‹…—”•ʹǡͷͲǡͲͲͲ‘–”ƒ•ˆ‡”Ǥ‘’—–‡–Š‡ƒ’‹–ƒŽ
ƒ‹•–ƒšƒ„Ž‡‹Š‹•Šƒ†•‹ʹͲʹʹǦʹ͵Ǥ

Solution:

Particulars INR
‡–ƒŽ‡‘ˆ‘•‹†‡”ƒ–‹‘ ͺ͹ǡͷͲǡͲͲͲ
‡•• †‡š‡† ‘•–‘ˆ …“—‹•‹–‹‘ȏȋ  ƒ• ‘ ͲͳǤͲͶǤʹͲͲͳ‘”…‘•–‘ˆ ȋ͵ͳǡ͹ͲǡͲͲͲȌ
ƒ…“—‹•‹–‹‘™Š‹…Š‡˜‡” ‹•Š‹‰Š‡”‹Ǥ‡ǤͳͲǡͲͲǡͲͲͲȗ͵ͳ͹ȀͳͲͲȐ
†‡š‡†‘•–‘ˆ’”‘˜‡‡– ȏͺǡͲͲǡͲͲͲȗ͵ͳ͹ȀͳͲͷȐ ȋʹͶǡͳͷǡʹ͵ͺȌ
†‡š‡†‘•–‘ˆ’”‘˜‡‡– ȏͳͷǡͲͲǡͲͲͲȗ͵ͳ͹ȀʹͲͲȐ ȋʹ͵ǡ͹͹ǡͷͲͲȌ

Long Term Capital Gains 7,87,262

Note: The Cost of Improvement to the property only after 1st April, 2001 are considered. The
costs are indexed using the indices from the CII table.

ASCERTAINMENT OF COST IN SPECIFIED CIRCUMSTANCES [SECTION 49]

’‡”•‘„‡…‘‡•–Š‡‘™‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‘–‘Ž›„›’—”…Šƒ•‡„—–ƒŽ•‘„›•‡˜‡”ƒŽ‘–Š‡”‡–Š‘†•Ǥ‡…–‹‘Ͷͻ
‰‹˜‡•‰—‹†‡Ž‹‡•ƒ•–‘Š‘™–‘…‘’—–‡–Š‡…‘•–—†‡”†‹ˆˆ‡”‡–…‹”…—•–ƒ…‡•Ǥ
(1) Cost to previous owner deemed as cost of acquisition of asset: –Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘
‘ˆ–Š‡ƒ••‡–•ŠƒŽŽ„‡†‡‡‡†–‘„‡…‘•–ˆ‘”™Š‹…Š–Š‡’”‡˜‹‘—•‘™‡”‘ˆ–Š‡’”‘’‡”–›ƒ…“—‹”‡†‹–Ǥ‘–Š‹•…‘•–ǡ
–Š‡…‘•–‘ˆ‹’”‘˜‡‡––‘–Š‡ƒ••‡–‹…—””‡†„›–Š‡’”‡˜‹‘—•‘™‡”‘”–Š‡ƒ••‡••‡‡—•–„‡ƒ††‡†ǣ
Š‡”‡–Š‡…ƒ’‹–ƒŽƒ••‡–„‡…ƒ‡–Š‡’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡ǣ
ȋ‹Ȍ ‘ƒ›†‹•–”‹„—–‹‘‘ˆƒ••‡–•‘–Š‡–‘–ƒŽ‘”’ƒ”–‹–‹‘‘ˆƒ Ǣ
ȋ‹‹Ȍ —†‡”ƒ‰‹ˆ–‘”™‹ŽŽǢ
ȋ‹‹‹Ȍ „›•—……‡••‹‘ǡ‹Š‡”‹–ƒ…‡‘”†‡˜‘Ž—–‹‘Ǣ
ȋ‹˜Ȍ ‘ƒ›†‹•–”‹„—–‹‘‘ˆƒ••‡–•‘–Š‡Ž‹“—‹†ƒ–‹‘‘ˆƒ…‘’ƒ›Ǣ
ȋ˜Ȍ —†‡”ƒ–”ƒ•ˆ‡”–‘”‡˜‘…ƒ„Ž‡‘”ƒ‹””‡˜‘…ƒ„Ž‡–”—•–Ǣ
 262 Lesson 4 Ȉ EP-TL

ȋ˜‹Ȍ —†‡” ƒ› –”ƒ•ˆ‡” ‘ˆ …ƒ’‹–ƒŽ ƒ••‡– „› ƒ Š‘Ž†‹‰ …‘’ƒ› –‘ ‹–• ™Š‘ŽŽ› ‘™‡† •—„•‹†‹ƒ”› †‹ƒ
…‘’ƒ› ‘” „› ƒ •—„•‹†‹ƒ”› …‘’ƒ› –‘ ‹–• ͳͲͲΨ Š‘Ž†‹‰ †‹ƒ …‘’ƒ›ǡ ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘•
Ͷ͹ȋ‹˜Ȍƒ†Ͷ͹ȋ˜Ȍ”‡•’‡…–‹˜‡Ž›Ǣ
ȋ˜‹‹Ȍ —†‡”ƒ›–”ƒ•ˆ‡””‡ˆ‡””‡†–‘‹•‡…–‹‘Ͷ͹ȋ˜‹Ȍ‘ˆƒ…ƒ’‹–ƒŽƒ••‡–„›ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›–‘–Š‡
ƒƒŽ‰ƒƒ–‡††‹ƒ…‘’ƒ›ǡ‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘Ǣ
ȋ˜‹‹‹Ȍ —†‡”ƒ›–”ƒ•ˆ‡””‡ˆ‡””‡†–‘‹•‡…–‹‘Ͷ͹ȋ˜‹„Ȍǡ‘ˆƒ…ƒ’‹–ƒŽƒ••‡–„›–Š‡†‡‡”‰‡†…‘’ƒ›–‘–Š‡
”‡•—Ž–‹‰†‹ƒ…‘’ƒ›ǡ‹ƒ•…Š‡‡‘ˆ†‡‡”‰‡”Ǣ
ȋ‹šȌ „›…‘˜‡”•‹‘„›ƒ‹†‹˜‹†—ƒŽ‘ˆŠ‹••‡’ƒ”ƒ–‡’”‘’‡”–›‹–‘ƒ ’”‘’‡”–›ǡ„›–Š‡‘†‡”‡ˆ‡””‡†–‘
‹•‡…–‹‘͸ͶȋʹȌǤ
……‘”†‹‰Ž›ǡ•‡…–‹‘ʹȋͶʹȌ’”‘˜‹†‡•–Šƒ–‹ƒŽŽ•—…Š…ƒ•‡•ǡˆ‘”†‡–‡”‹‹‰–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡…ƒ’‹–ƒŽƒ••‡–‹•
Š‡Ž†„›–Š‡–”ƒ•ˆ‡”‡‡ǡ–Š‡’‡”‹‘†‘ˆŠ‘Ž†‹‰‘ˆ–Š‡ƒ••‡–„›–Š‡’”‡˜‹‘—•‘™‡”•ŠƒŽŽƒŽ•‘„‡…‘•‹†‡”‡†Ǥ

†‡šƒ–‹‘„‡‡ϐ‹–ˆ”‘™Š‹…Š›‡ƒ”ǫ
Š‡‹••—‡ƒ•–‘™Š‡–Š‡”‹†‡šƒ–‹‘„‡‡ϐ‹–‹”‡•’‡…–‘ˆƒ‰‹ˆ–‡†ƒ••‡–•ŠƒŽŽƒ’’Ž›ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–
™ƒ•ϐ‹”•–Š‡Ž†„›–Š‡ƒ••‡••‡‡‘”ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š–Š‡•ƒ‡™ƒ•ϐ‹”•–ƒ…“—‹”‡†„›–Š‡’”‡˜‹‘—•‘™‡”™ƒ•
–ƒ‡—’„›–Š‡‘„ƒ›‹‰Š‘—”–‹CIT v. Manjula J. Shah 16 Taxman 42 (Bom.).
• ’‡” Explanation 1 –‘ •‡…–‹‘ ʹȋͶʹȌǡ ‹ …ƒ•‡ –Š‡ …ƒ’‹–ƒŽ ƒ••‡– „‡…‘‡• –Š‡ ’”‘’‡”–› ‘ˆ –Š‡ ƒ••‡••‡‡ ‹ –Š‡
…‹”…—•–ƒ…‡•‡–‹‘‡†‹•‡…–‹‘ͶͻȋͳȌǡinter alia, „›™ƒ›‘ˆ‰‹ˆ–„›–Š‡’”‡˜‹‘—•‘™‡”ǡ–Š‡ˆ‘”†‡–‡”‹‹‰–Š‡
ƒ–—”‡‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡ƒ‰‰”‡‰ƒ–‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡…ƒ’‹–ƒŽƒ••‡–‹•Š‡Ž†„›–Š‡ƒ••‡••‡‡ƒ†–Š‡’”‡˜‹‘—•
‘™‡”•ŠƒŽŽ„‡…‘•‹†‡”‡†Ǥ
•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘Ͷͺǡ–Š‡’”‘ϐ‹–ƒ†‰ƒ‹•ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•ŠƒŽŽ„‡
…‘’—–‡†„›”‡†—…‹‰–Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘ˆ”‘–Š‡‡–•ƒŽ‡…‘•‹†‡”ƒ–‹‘Ǥ
Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘‡ƒ•–Š‡ƒ‘—–™Š‹…Š„‡ƒ”•–‘–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•
‘•–ϐŽƒ–‹‘†‡šȋȌˆ‘”–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‹•–”ƒ•ˆ‡””‡†„‡ƒ”•–‘–Š‡ˆ‘”–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–
™ƒ•ϐ‹”•–Š‡Ž†„›–Š‡ƒ••‡••‡‡–”ƒ•ˆ‡””‹‰‹–ǡ‹Ǥ‡Ǥǡ–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–™ƒ•‰‹ˆ–‡†–‘–Š‡ƒ••‡••‡‡‹…ƒ•‡‘ˆ
–”ƒ•ˆ‡”„›–Š‡’”‡˜‹‘—•‘™‡”„›™ƒ›‘ˆ‰‹ˆ–Ǥ
Š‡‹••—‡—†‡”…‘•‹†‡”ƒ–‹‘™ƒ•™Š‡–Š‡”ǡ‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ••‡••‡‡Šƒ†ƒ…“—‹”‡†ƒ…ƒ’‹–ƒŽƒ••‡–„›™ƒ›‘ˆ‰‹ˆ–
ˆ”‘–Š‡’”‡˜‹‘—•‘™‡”ǡ–Š‡•ƒ‹†ƒ••‡–…ƒ„‡–”‡ƒ–‡†ƒ•ƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–…‘•‹†‡”‹‰–Š‡’‡”‹‘†‘ˆŠ‘Ž†‹‰
„›–Š‡ƒ••‡••‡‡ƒ•™‡ŽŽƒ•–Š‡’”‡˜‹‘—•‘™‡”Ǥ
Š‡‘„ƒ›‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘‹…ƒ•‡‘ˆ‰‹ˆ–‡†ƒ••‡–Šƒ•–‘„‡…‘’—–‡†™‹–Š
”‡ˆ‡”‡…‡–‘–Š‡›‡ƒ”‹™Š‹…Š–Š‡’”‡˜‹‘—•‘™‡”ϐ‹”•–Š‡Ž†–Š‡ƒ••‡–ƒ†‘––Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡••‡‡„‡…ƒ‡
–Š‡‘™‡”‘ˆ–Š‡ƒ••‡–Ǥ
•’‡”–Š‡’Žƒ‹”‡ƒ†‹‰‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͺǡŠ‘™‡˜‡”ǡ–Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘™‘—Ž†„‡†‡–‡”‹‡†
„›–ƒ‹‰ˆ‘”–Š‡›‡ƒ”‹™Š‹…Š‹™Š‹…Šƒ••‡–‹•ϐ‹”•–Š‡Ž†„›–Š‡ƒ••‡••‡‡Ǥ
(1) Cost of acquisition of shares received under the scheme of Amalgamation: Š‡”‡ •Šƒ”‡• ‹ ƒ
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›™Š‹…Š‹•ƒ†‹ƒ…‘’ƒ›„‡…‘‡–Š‡’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡‹…‘•‹†‡”ƒ–‹‘‘ˆ
–Š‡–”ƒ•ˆ‡”‘ˆ•Šƒ”‡•”‡ˆ‡””‡†–‘‹•‡…–‹‘Ͷ͹ȋ˜‹‹ȌŠ‡Ž†„›Š‹‹–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›—†‡”ƒ•…Š‡‡
‘ˆƒƒŽ‰ƒƒ–‹‘ǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘–‘Š‹‘ˆ–Š‡•Šƒ”‡•‹–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›•ŠƒŽŽ„‡–ƒ‡ƒ•
–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡•Šƒ”‡•‹–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ȏ‡…–‹‘ͶͻȋʹȌȐ
(2) Cost of acquisition of shares received during the process of conversion of bonds or debentures,
†‡„‡–—”‡•–‘…‘”†‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡•ǣ–‹•’‘••‹„Ž‡–Šƒ–ƒ’‡”•‘‹‰Š–Šƒ˜‡„‡…‘‡–Š‡‘™‡”‘ˆ•Šƒ”‡•
‘”†‡„‡–—”‡•‹ƒ…‘’ƒ›†—”‹‰–Š‡’”‘…‡••‘ˆ…‘˜‡”•‹‘‘ˆ„‘†•‘”†‡„‡–—”‡•ǡ†‡„‡–—”‡•–‘…‘”
†‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡•”‡ˆ‡””‡†—†‡”•‡…–‹‘Ͷ͹ȋšȌǤ
•—…Šƒ…ƒ•‡ǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘–‘–Š‡’‡”•‘•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Šƒ–’ƒ”–‘ˆ–Š‡…‘•–‘ˆ†‡„‡–—”‡•ǡ
†‡„‡–—”‡•–‘…ǡ„‘†‘”†‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡‹”‡Žƒ–‹‘–‘™Š‹…Š•—…Šƒ••‡–‹•ƒ…“—‹”‡†„›–Šƒ–’‡”•‘ȏ‡…–‹‘
ͶͻȋʹȌȐǤ
 Lesson 4 Ȉ Part IV - Income from Capital Gains ʹ͸͵

ȋ͵Ȍ ‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•’‡…‹ϐ‹‡†•‡…—”‹–›‘”•™‡ƒ–‡“—‹–›•Šƒ”‡•ǣŠ‡”‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‡•ˆ”‘–Š‡
–”ƒ•ˆ‡”‘ˆ•’‡…‹ϐ‹‡†•‡…—”‹–›‘”•™‡ƒ–‡“—‹–›•Šƒ”‡•”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳ͹ȋʹȌȋ˜‹Ȍǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ
•—…Š •‡…—”‹–› ‘” •Šƒ”‡• •ŠƒŽŽ „‡ –Š‡ ˆƒ‹” ƒ”‡– ˜ƒŽ—‡ ™Š‹…Š Šƒ• „‡‡ –ƒ‡ ‹–‘ ƒ……‘—– ˆ‘” ’‡”“—‹•‹–‡
˜ƒŽ—ƒ–‹‘ȏ‡…–‹‘ͶͻȋʹȌȐǤ
(4) Cost of acquisition of units acquired under consolidated scheme of Mutual Fund: Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘
‘ˆ –Š‡ —‹–• ƒ…“—‹”‡† „› –Š‡ ƒ••‡••‡‡ ‹ …‘•‘Ž‹†ƒ–‡† •…Š‡‡ ‘ˆ —–—ƒŽ ˆ—† ‹ …‘•‹†‡”ƒ–‹‘ ‘ˆ –”ƒ•ˆ‡”
”‡ˆ‡””‡†‹•‡…–‹‘Ͷ͹ȋš˜‹‹‹Ȍ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘–‘Š‹‘ˆ–Š‡—‹–•‹–Š‡…‘•‘Ž‹†ƒ–‹‰
•…Š‡‡‘ˆ—–—ƒŽˆ—†ȏ‡…–‹‘ͶͻȋʹȌȐǤ
(5) Cost of acquisition of equity shares received at the time of conversion of preference shares: ‘•–‘ˆ
ƒ…“—‹•‹–‹‘‘ˆ–Š‡‡“—‹–›•Šƒ”‡‘ˆƒ…‘’ƒ›ǡ™Š‹…Š„‡…ƒ‡–Š‡’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡‹…‘•‹†‡”ƒ–‹‘‘ˆ
–”ƒ•ˆ‡””‡ˆ‡””‡†–‘‹•‡…–‹‘Ͷ͹ȋš„Ȍǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Šƒ–’ƒ”–‘ˆ–Š‡…‘•–‘ˆ–Š‡’”‡ˆ‡”‡…‡•Šƒ”‡‹
”‡Žƒ–‹‘–‘™Š‹…Š•—…Šƒ••‡–‹•ƒ…“—‹”‡†„›–Š‡ƒ••‡••‡‡ȏ‡…–‹‘ͶͻȋʹȌȐǤ
(6) Cost of acquisition of units acquired under consolidated plan of Mutual Fund scheme: ‘•–‘ˆƒ…“—‹•‹–‹‘
‘ˆ–Š‡—‹–‘”—‹–•‹–Š‡…‘•‘Ž‹†ƒ–‡†’Žƒ‘ˆ–Š‡•…Š‡‡‘ˆ–Š‡—–—ƒŽˆ—†‹…‘•‹†‡”ƒ–‹‘‘ˆƒ–”ƒ•ˆ‡”
”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ Ͷ͹ȋš‹šȌ •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ –Š‡ …‘•– ‘ˆ ƒ…“—‹•‹–‹‘ –‘ Š‹ ‘ˆ –Š‡ —‹– ‘” —‹–• ‹
…‘•‘Ž‹†ƒ–‹‰’Žƒ‘ˆ–Š‡•…Š‡‡‘ˆ–Š‡—–—ƒŽˆ—†ȏ‡…–‹‘Ͷͻȋʹ ȌȐǤ
(7) Cost of acquisition of shares received in the resulting company, in the scheme of demerger: –Š‡…ƒ•‡
‘ˆƒ†‡‡”‰‡”ǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡•Šƒ”‡•‹–Š‡”‡•—Ž–‹‰…‘’ƒ›•ŠƒŽŽ„‡–Š‡ƒ‘—–™Š‹…Š„‡ƒ”•
–‘–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•Šƒ”‡•Š‡Ž†„›–Š‡ƒ••‡••‡‡‹–Š‡†‡‡”‰‡†…‘’ƒ›–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•–Š‡
‡– „‘‘ ˜ƒŽ—‡ ‘ˆ –Š‡ ƒ••‡–• –”ƒ•ˆ‡””‡† ‹ ƒ †‡‡”‰‡” „‡ƒ”• –‘ –Š‡ ‡– ™‘”–Š ‘ˆ –Š‡ †‡‡”‰‡† …‘’ƒ›
‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡•—…Š†‡‡”‰‡”ȏ‡…–‹‘ͶͻȋʹȌȐǤ
        
 ‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•Šƒ”‡•‹–Š‡”‡•—Ž–‹‰…‘’ƒ›αš
        
 α‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•Šƒ”‡•Š‡Ž†‹–Š‡†‡‡”‰‡†…‘’ƒ›α‡–„‘‘˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–•–”ƒ•ˆ‡””‡†
‹ƒ†‡‡”‰‡”
 α‡–™‘”–Š‘ˆ–Š‡†‡‡”‰‡†…‘’ƒ›ǡ‹Ǥ‡Ǥǡ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡’ƒ‹†—’•Šƒ”‡…ƒ’‹–ƒŽƒ†‰‡‡”ƒŽ”‡•‡”˜‡•
ƒ•ƒ’’‡ƒ”‹‰‹–Š‡„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡†‡‡”‰‡†…‘’ƒ›‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡†‡‡”‰‡”Ǥ
(8) Cost of acquisition of the shares held in the demerged company: Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡‘”‹‰‹ƒŽ
•Šƒ”‡• Š‡Ž† „› –Š‡ •Šƒ”‡Š‘Ž†‡” ‹ –Š‡ †‡‡”‰‡† …‘’ƒ› •ŠƒŽŽ „‡ †‡‡‡† –‘ Šƒ˜‡ „‡‡ ”‡†—…‡† „› –Š‡
ƒ‘—–ƒ••‘ƒ””‹˜‡†—†‡”–Š‡•—„Ǧ•‡…–‹‘ȋʹȌȏ‡…–‹‘ͶͻȋʹȌȐǤ
(9) Cost of acquisition of property subject to tax under section 56(2)(x): Š‡”‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‡•ˆ”‘
–Š‡–”ƒ•ˆ‡”‘ˆ•—…Š’”‘’‡”–›™Š‹…ŠŠƒ•„‡‡•—„Œ‡…––‘–ƒš—†‡”•‡…–‹‘ͷ͸ȋʹȌȋšȌ, –Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ
–Š‡’”‘’‡”–›•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡˜ƒŽ—‡–ƒ‡‹–‘ƒ……‘—–ˆ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘ͷ͸ȋʹȌȋšȌȏ‡…–‹‘
ͶͻȋͶȌȐ.
 ȏ ‘”‹ŽŽ—•–”ƒ–‹‘ǡ•‡‡‹–ͷ‘ˆŠƒ’–‡”ͶDz…‘‡ˆ”‘–Š‡”‘—”…‡•dz—†‡”•‡…–‹‘ͷ͸ȋʹȌȋšȌȐ
(10) Cost of acquisition of capital asset, being share in the project referred under section 45(5A): Š‡”‡
–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‡•ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰•Šƒ”‡‹–Š‡’”‘Œ‡…–ǡ‹–Š‡ˆ‘”‘ˆŽƒ†‘”
„—‹Ž†‹‰‘”„‘–Šǡ”‡ˆ‡””‡†–‘‹•‡…–‹‘ͶͷȋͷȌ™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡
…‘’Ž‡–‹‘‘ˆ…‡”–‹ϐ‹…ƒ–‡ˆ‘”–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡’”‘Œ‡…–‹•‹••—‡†„›–Š‡…‘’‡–‡–ƒ—–Š‘”‹–›Ȍǡ–Š‡…‘•–‘ˆ
ƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–ǡ •ŠƒŽŽ „‡ –Š‡ƒ‘—– ™Š‹…Š‹•†‡‡‡†ƒ•ˆ—ŽŽ ˜ƒŽ—‡ ‘ˆ…‘•‹†‡”ƒ–‹‘ ‹–Šƒ– •—„Ǧ
•‡…–‹‘ǡ‹Ǥ‡Ǥǡ•–ƒ’†—–›˜ƒŽ—‡‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ…‡”–‹ϐ‹…ƒ–‡‘ˆ…‘’Ž‡–‹‘’Ž—•…ƒ•Š…‘•‹†‡”ƒ–‹‘Ǥ
(11) ‘™‡˜‡”ǡ–Š‹•†‘‡•‘–ƒ’’Ž›–‘ƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰•Šƒ”‡‹–Š‡’”‘Œ‡…–™Š‹…Š‹•–”ƒ•ˆ‡””‡†‘‘”„‡ˆ‘”‡–Š‡
†ƒ–‡‘ˆ‹••—‡‘ˆ•ƒ‹†…‘’Ž‡–‹‘…‡”–‹ϐ‹…ƒ–‡ȏ‡…–‹‘Ͷͻȋ͹ȌȐǤ
(12) Cost of acquisition of a capital asset which was used by the assessee as an inventory: Š‡”‡–Š‡…ƒ’‹–ƒŽ
‰ƒ‹ƒ”‹•‡•ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–™Š‹…Š™ƒ•—•‡†„›–Š‡ƒ••‡••‡‡ƒ•‹˜‡–‘”›‡ƒ”Ž‹‡”„‡ˆ‘”‡‹–•
…‘˜‡”•‹‘‹–‘…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•—…Š…ƒ’‹–ƒŽƒ••‡–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ˆƒ‹”ƒ”‡–
˜ƒŽ—‡‘ˆ–Š‡‹˜‡–‘”›ƒ•‘–Š‡†ƒ–‡‘•—…Š…‘˜‡”•‹‘†‡–‡”‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”ȏ‡…–‹‘ͶͻȋͻȌȐ
 264 Lesson 4 Ȉ EP-TL

Capital Gains for Depreciable Assets (Section 50)

Š‡”‡–Š‡…ƒ’‹–ƒŽƒ••‡–‹•ƒƒ••‡–ˆ‘”‹‰’ƒ”–‘ˆƒ„Ž‘…‘ˆƒ••‡–•‹”‡•’‡…–‘ˆ™Š‹…Š†‡’”‡…‹ƒ–‹‘Šƒ•„‡‡ƒŽǦ
Ž‘™‡†ǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•Ͷͺƒ†Ͷͻ•ŠƒŽŽ„‡•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰‘†‹ϐ‹…ƒ–‹‘ǣ
Ȉ Š‡”‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡ƒ••‡–’Ž—•–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ
•—…Š…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆƒ›‘–Š‡”…ƒ’‹–ƒŽƒ••‡–ˆƒŽŽ‹‰™‹–Š‹–Š‡„Ž‘…‘ˆƒ••‡–•†—”‹‰’”‡˜‹‘—•
›‡ƒ”‡š…‡‡†•–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–•ƒ‡Ž›ǣ
‹Ȍ ‡š’‡†‹–—”‡‹…—””‡†™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›‹…‘‡…–‹‘™‹–Š•—…Š–”ƒ•ˆ‡”Ǣ
‹‹Ȍ ‘ˆ–Š‡„Ž‘…‘ˆƒ••‡–•ƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ
‹‹‹Ȍ –Š‡ƒ…–—ƒŽ…‘•–‘ˆƒ›ƒ••‡–ˆƒŽŽ‹‰™‹–Š‹–Š‡„Ž‘…‘ˆƒ••‡–•ƒ…“—‹”‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”•—…Š
‡š…‡•••ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•Ǥ
‹˜Ȍ Š‡”‡ƒŽŽƒ••‡–•‹ƒ„Ž‘…ƒ”‡–”ƒ•ˆ‡””‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ–Š‡„Ž‘…‹–•‡Žˆ™‹ŽŽ…‡ƒ•‡–‘‡š‹•–Ǥ
•—…Šƒ•‹–—ƒ–‹‘ǡ–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡•ƒŽ‡˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–•ƒ†–Š‡‘ˆ–Š‡„Ž‘…‘ˆ
ƒ••‡–•ƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”–‘‰‡–Š‡”™‹–Š–Š‡ƒ…–—ƒŽ…‘•–‘ˆƒ›ƒ••‡–ˆƒŽŽ‹‰™‹–Š‹–Šƒ–
„Ž‘…‘ˆƒ••‡–•ƒ…“—‹”‡†„›–Š‡ƒ••‡••‡‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”™‹ŽŽ„‡†‡‡‡†–‘„‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹•
ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•Ǥ
˜Ȍ ƒ…ƒ•‡™Š‡”‡‰‘‘†™‹ŽŽ‘ˆƒ„—•‹‡••‘”’”‘ˆ‡••‹‘ˆ‘”•’ƒ”–‘ˆƒ„Ž‘…‘ˆƒ••‡–ˆ‘”–Š‡ƒ••‡••‡–
›‡ƒ” „‡‰‹‹‰ ‘ –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲʹͲ ƒ† †‡’”‡…‹ƒ–‹‘ –Š‡”‡‘ Šƒ• „‡‡ ‘„–ƒ‹‡† „› –Š‡
ƒ••‡••‡‡—†‡”–Š‡…–ǡ–Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆ–Šƒ–„Ž‘…‘ˆƒ••‡–ƒ†•Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹ǡ‹ˆƒ›ǡ
•ŠƒŽŽ„‡†‡–‡”‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†.[Inserted by Finance Act, 2021]

Cost of acquisition in case of power sector assets [Section 50A]: ‹–Š”‡•’‡…––‘–Š‡’‘™‡”•‡…–‘”ǡ‹…ƒ•‡‘ˆ

†‡’”‡…‹ƒ„Ž‡ƒ••‡–•”‡ˆ‡””‡†–‘‹•‡…–‹‘͵ʹȋͳȌȋ‹Ȍǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•Ͷͺƒ†Ͷͻ•ŠƒŽŽƒ’’Ž›•—„Œ‡…––‘–Š‡
‘†‹ϐ‹…ƒ–‹‘–Šƒ––Š‡‘ˆ–Š‡ƒ••‡–ȋƒ•†‡ϐ‹‡†‹•‡…–‹‘Ͷ͵ȋ͸ȌȌǡƒ•ƒ†Œ—•–‡†ǡ•ŠƒŽŽ„‡–ƒ‡–‘„‡–Š‡…‘•–‘ˆ
ƒ…“—‹•‹–‹‘Ǥ

CAPITAL GAINS IN RESPECT OF SLUMP SALE [SECTION 50B]

Meaning of Slump Sale [Section 2(42C)]
‘Slump Sale’ means –Š‡–”ƒ•ˆ‡”‘ˆ‘‡‘”‘”‡—†‡”–ƒ‹‰•ƒ•ƒ”‡•—Ž–‘ˆ–Š‡•ƒŽ‡ˆ‘”ƒŽ—’•—…‘•‹†‡”ƒ–‹‘
™‹–Š‘—–˜ƒŽ—‡•„‡‹‰ƒ••‹‰‡†–‘–Š‡‹†‹˜‹†—ƒŽƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‹•—…Š•ƒŽ‡•Ǥ‘–Š‡”™‘”†•‹–‹•ƒ•ƒŽ‡™Š‡”‡
–Š‡ƒ••‡••‡‡–”ƒ•ˆ‡”•‘‡‘”‘”‡—†‡”–ƒ‹‰ƒ•ƒ™Š‘Ž‡‹…Ž—†‹‰ƒŽŽ–Š‡ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•ƒ•ƒ‰‘‹‰…‘…‡”Ǥ
Š‡…‘•‹†‡”ƒ–‹‘‹•ϐ‹š‡†ˆ‘”–Š‡™Š‘Ž‡—†‡”–ƒ‹‰ƒ†”‡…‡‹˜‡†„›–Š‡–”ƒ•ˆ‡”‘”‹–‹•‘–ϐ‹š‡†ˆ‘”‡ƒ…Š‘ˆ–Š‡
ƒ••‡–‘ˆ–Š‡—†‡”–ƒ‹‰ƒ•ƒ™Š‘Ž‡„›™ƒ›‘ˆ•—…Š•ƒŽ‡ǤŠ—•‹–ƒ›„‡‘–‡†–Šƒ––Š‡—†‡”–ƒ‹‰ƒ•ƒ™Š‘Ž‡‘”–Š‡
†‹˜‹•‹‘–”ƒ•ˆ‡””‡†•ŠƒŽŽ„‡ƒ…ƒ’‹–ƒŽƒ••‡–Ǥ
Ȉ ›‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡•Ž—’•ƒŽ‡‘ˆ‘‡Ȁ‘”‡—†‡”–ƒ‹‰•Š‡Ž†ˆ‘”‘”‡–Šƒ͵͸‘–Š•ǡ•ŠƒŽŽ„‡
…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•‘‰Ǧ‡”ƒ’‹–ƒŽ
ƒ‹•‹–Š‡”‡˜‹‘—•‡ƒ”‹™Š‹…Š–Š‡•Ž—’•ƒŽ‡™ƒ•‡ˆˆ‡…–‡†
Ȉ › ‰ƒ‹• ƒ”‹•‹‰ ˆ”‘ –Š‡ •Ž—’ •ƒŽ‡ ‘ˆ ‘‡ Ȁ ‘”‡ —†‡”–ƒ‹‰• Š‡Ž† ˆ‘” Ž‡•• –Šƒ ͵͸ ‘–Š•ǡ •ŠƒŽŽ „‡
…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•Š‘”–Ǧ‡”ƒ’‹–ƒŽ
ƒ‹•‹–Š‡”‡˜‹‘—•‡ƒ”‹™Š‹…Š–Š‡•Ž—’•ƒŽ‡™ƒ•‡ˆˆ‡…–‡†
”‡Žƒ–‹‘–‘…ƒ’‹–ƒŽƒ••‡–•„‡‹‰ƒ—†‡”–ƒ‹‰‘”†‹˜‹•‹‘–”ƒ•ˆ‡””‡†„›™ƒ›‘ˆ•—…Š•Ž—’•ƒŽ‡ǡȄ

ȋ‹Ȍ –Š‡ Dz‡– ™‘”–Šdz ‘ˆ –Š‡ —†‡”–ƒ‹‰ ‘” –Š‡ †‹˜‹•‹‘ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ –Š‡ …‘•– ‘ˆ
ƒ…“—‹•‹–‹‘ƒ†–Š‡…‘•–‘ˆ‹’”‘˜‡‡–ˆ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘•Ͷͺƒ†Ͷͻƒ†‘”‡‰ƒ”†•ŠƒŽŽ„‡‰‹˜‡
–‘–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹–Š‡•‡…‘†’”‘˜‹•‘–‘•‡…–‹‘ͶͺǢ
ȋ‹‹Ȍ ƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–•ƒ•‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ǡ…ƒŽ…—Žƒ–‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”ǡ•ŠƒŽŽ„‡
†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ•—…Š…ƒ’‹–ƒŽ
ƒ••‡–Ǥȏ•‡”–‡†„› ‹ƒ…‡…–ǡʹͲʹͳȐ
˜‡”›ƒ••‡••‡‡ǡ‹–Š‡…ƒ•‡‘ˆ•Ž—’•ƒŽ‡ǡ•ŠƒŽŽˆ—”‹•Š‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ”‡’‘”–‘ˆƒƒ……‘—–ƒ–ƒ•†‡ϐ‹‡†
‹ –Š‡ š’Žƒƒ–‹‘ „‡Ž‘™ •—„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ •‡…–‹‘ ʹͺͺ „‡ˆ‘”‡ –Š‡ •’‡…‹ϐ‹‡† †ƒ–‡ ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͶͶ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 265

‹†‹…ƒ–‹‰–Š‡…‘’—–ƒ–‹‘‘ˆ–Š‡‡–™‘”–Š‘ˆ–Š‡—†‡”–ƒ‹‰‘”†‹˜‹•‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ†…‡”–‹ˆ›‹‰–Šƒ–
–Š‡‡–™‘”–Š‘ˆ–Š‡—†‡”–ƒ‹‰‘”†‹˜‹•‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡŠƒ•„‡‡…‘””‡…–Ž›ƒ””‹˜‡†ƒ–‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘Ǥ[Amended by Finance Act, 2020]

Meaning of Certain Terms:

Net Worth: ‰‰”‡‰ƒ–‡˜ƒŽ—‡‘ˆ–‘–ƒŽƒ••‡–•‘ˆ–Š‡—†‡”–ƒ‹‰‘”†‹˜‹•‹‘as reduced by –Š‡˜ƒŽ—‡‘ˆŽ‹ƒ„‹Ž‹–‹‡•‘ˆ
•—…Š—†‡”–ƒ‹‰‘”†‹˜‹•‹‘ƒ•ƒ’’‡ƒ”‹‰‹–Š‡„‘‘•‘ˆƒ……‘—–ǤHowever, any change in the value of assets on
account of revaluation of assets shall not be considered for this purpose:
‰‰”‡‰ƒ–‡˜ƒŽ—‡‘ˆ–‘–ƒŽƒ••‡–•‘ˆ—†‡”–ƒ‹‰‘”†‹˜‹•‹‘ǣ
In the case of depreciable assets: Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆ„Ž‘…‘ˆƒ••‡–•†‡–‡”‹‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡
’”‘˜‹•‹‘•…‘–ƒ‹‡†‹•—„Ǧ‹–‡ȋȌ‘ˆ‹–‡ȋ‹Ȍ‘ˆ•‡…–‹‘Ͷ͵ȋ͸Ȍȋ…ȌǢ
In the case of capital asset being goodwill of a business or professionǡ™Š‹…ŠŠƒ•‘–„‡‡ƒ…“—‹”‡†„›–Š‡
ƒ••‡••‡‡„›’—”…Šƒ•‡ˆ”‘ƒ’”‡˜‹‘—•‘™‡”ǡ‹Ž[Inserted by Finance Act, 2021]
Capital asset in respect of which 100% deduction is claimed: …ƒ•‡‘ˆ…ƒ’‹–ƒŽƒ••‡–•‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡
™Š‘Ž‡‘ˆ–Š‡‡š’‡†‹–—”‡Šƒ•„‡‡ƒŽŽ‘™‡†‘”‹•ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ†‡†—…–‹‘—†‡”•‡…–‹‘͵ͷǣNilǢ
For all other assets: ‘‘˜ƒŽ—‡
CIT v/s Equinox Solution Pvt. Ltd (SC): ˆƒ—†‡”–ƒ‹‰‹••‘Ž†ƒ•ƒ”—‹‰„—•‹‡••™‹–ŠƒŽŽƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•
ˆ‘”ƒ•Ž—’’”‹…‡ǡ…‘•‹†‡”ƒ–‹‘‹”‡•’‡…–‘ˆ†‡’”‡…‹ƒ„Ž‡ƒ••‡–•…ƒ‘–„‡ƒ••‡••‡†ƒ•ƒ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹—Ȁ•
ͷͲȋʹȌǤ
Š‡’‡š‘—”–ǡŠ‘™‡˜‡”ǡ‘’‹‡†–Šƒ–™Š‡”‡–Š‡‡–‹”‡”—‹‰„—•‹‡••™‹–Šƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡••–‘‘†–”ƒ•Ǧ
ˆ‡””‡†‹‘‡‰‘ǡ•—…Š•ƒŽ‡…‘—Ž†‘–„‡–”‡ƒ–‡†ƒ••Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•ƒ†‹•‹–Š‡ƒ–—”‡‘ˆŽ‘‰–‡”…ƒ’‹–ƒŽ
‰ƒ‹•Ǥ

Illustration 5:
‘Šƒ‹•–Š‡’”‘’”‹‡–‘”‘ˆŠ‘–‘ ‹Ž‰‡…‹‡•™Š‹…ŠŠƒ•ʹ—‹–•ǡ‘‡ˆ‘”’”‹–‹‰ƒ†–Š‡‘–Š‡”ˆ‘”„‹†‹‰Ǥ‡
–”ƒ•ˆ‡””‡†ǡ „› ™ƒ› ‘ˆ •Ž—’ •ƒŽ‡ǡ ‘‡ ‘ˆ –Š‡ —‹–• ȋ‹– ʹȌ ‘ ͳ•– ’”ǯʹͳǡ ˆ‘” ƒ –‘–ƒŽ …‘•‹†‡”ƒ–‹‘ ‘ˆ 
ͷͲǡͲͲǡͲͲͲǤš’‡•‡•‘•ƒŽ‡™‡”‡ͲǤͷΨǤŠ‹•—‹–™ƒ••–ƒ”–‡†‹–Š‡›‡ƒ”ʹͲͳʹǦͳ͵Ǥ
’’‡†‡†„‡Ž‘™‹•–Š‡ƒŽƒ…‡Š‡‡–ǣ
Particulars Unit 1 Unit 2
—‹Ž†‹‰ ͹ǡͷͲǡͲͲͲ ͳͷǡͲͲǡͲͲͲ
ƒ…Š‹‡”› ͷǡͲͲǡͲͲͲ ͳͲǡͲͲǡͲͲͲ
‡„–‘”• ʹǡͷͲǡͲͲͲ ͷǡͲͲǡͲͲͲ
–Š‡”••‡–• ͳǡͲͲǡͲͲͲ ʹǡͲͲǡͲͲͲ
16,00,000 ͵ʹǡͲͲǡͲͲͲ
ƒ’‹–ƒŽ ͶͲǡͲͲǡͲͲͲ
‡˜ƒŽ—ƒ–‹‘‡•‡”˜‡ ʹǡͷͲǡͲͲͲ
ƒ‘ƒ ͵ǡͷͲǡͲͲͲ
”‡†‹–‘”• ʹǡͲͲǡͲͲͲ
48,00,000
Š‡ ‡˜ƒŽ—ƒ–‹‘ ‡•‡”˜‡ ™ƒ• …”‡ƒ–‡† „› —’™ƒ”† ”‡˜ƒŽ—ƒ–‹‘ ‘ˆ —‹Ž†‹‰• ‹ ‹– ʹǤ –Š‡” ••‡–• ‘ˆ ‹– ʹ
‹…Ž—†‡ǡͳǡͲͲǡͲͲͲ‘ˆƒ–‡–•ƒ…“—‹”‡†‘ͳ•– —Žǯͳ͸ǡ‘™Š‹…Š‘†‡’”‡…‹ƒ–‹‘Šƒ•„‡‡…Šƒ”‰‡†Ǥ͹ͷΨ‘ˆ
”‡†‹–‘”•ƒ†ʹͷΨ‘ˆƒ‘ƒ‹•ˆ‘”‹–ʹǤ
‘’—–‡–Š‡ƒ’‹–ƒŽ
ƒ‹•‘–Š‡•Ž—’•ƒŽ‡ˆ‘”ʹͲʹʹǦʹ͵Ǥ
 266 Lesson 4 Ȉ EP-TL

Solution:
Š‡ƒ’‹–ƒŽ
ƒ‹•ˆ”‘Ž—’ƒŽ‡ƒ”‡ƒ•—†‡”ǣ

Particulars Rs.
—ŽŽƒŽ—‡‘ˆ‘•‹†‡”ƒ–‹‘ ͷͲǡͲͲǡͲͲͲ
š’‡•‡•‘ƒŽ‡ ȋʹͷǡͲͲͲȌ
‡–ƒŽ‡‘•‹†‡”ƒ–‹‘ Ͷͻǡ͹ͷǡͲͲͲ
‡–‘”–Š ȋʹ͸ǡͶͶǡͳͶͳȌ
‘‰‡”ƒ’‹–ƒŽ
ƒ‹• ʹ͵ǡ͵Ͳǡͺͷͻ

Working Notes
ȋͳȌ Š‡ϐ‹”•–‘–‡†‡–ƒ‹Ž•–Š‡…‘’—–ƒ–‹‘‘ˆ‡–™‘”–Šˆ‘”‹–ʹ
‡–‘”–Š
—‹Ž†‹‰• ͳͷǡͲͲǡͲͲͲ
‡••ǣ ‡˜ƒŽ—ƒ–‹‘‡•‡”˜‡ ȋʹǡͷͲǡͲͲͲȌ
‡–ˆ‘”—‹Ž†‹‰• ͳʹǡͷͲǡͲͲͲ
ƒ…Š‹‡”› ͳͲǡͲͲǡͲͲͲ
‡„–‘”• ͷǡͲͲǡͲͲͲ
–Š‡”••‡–• ͳǡͲͲǡͲͲͲ
ƒ–‡–• ͵ͳǡ͸Ͷͳ
‘–ƒŽ••‡–• ʹͺǡͺͳǡ͸Ͷͳ
‡••ǣ ”‡†‹–‘”• ͳǡͷͲǡͲͲͲ
ƒ‘ƒ ͺ͹ǡͷͲͲ
‘–ƒŽ‹ƒ„‹Ž‹–‹‡• ȋʹǡ͵͹ǡͷͲͲȌ
‡–‘”–Š ʹ͸ǡͶͶǡͳͶͳ
ʹǤ Š‡•‡…‘†‘–‡†‡–ƒ‹Ž•–Š‡˜ƒŽ—ƒ–‹‘‘ˆ‘ˆƒ–‡–•
ƒ–‡–•
’‡‹‰Ž‘… ͳǡͲͲǡͲͲͲ
‡’”‡…‹ƒ–‹‘ͳ ȋʹͷǡͲͲͲȌ
”‹––‡‘™ƒŽ—‡ͳ ͹ͷǡͲͲͲ
‡’”‡…‹ƒ–‹‘ʹ ȋͳͺǡ͹ͷͲȌ
”‹––‡‘™ƒŽ—‡ʹ ͷ͸ǡʹͷͲ
‡’”‡…‹ƒ–‹‘͵ ȋͳͶǡͲ͸͵Ȍ
”‹––‡‘™ƒŽ—‡͵ Ͷʹǡͳͺͺ
‡’”‡…‹ƒ–‹‘Ͷ ȋͳͲǡͷͶ͹Ȍ
”‹––‡‘™ƒŽ—‡Ͷ ͵ͳǡ͸Ͷͳ

Computation of Capital Gain in Real Estate Transaction [Section 50C]

‡…–‹‘ͷͲƒ‡•ƒ•’‡…‹ƒŽ’”‘˜‹•‹‘ˆ‘”†‡–‡”‹‹‰–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘‹…ƒ•‡•‘ˆ–”ƒ•ˆ‡”‘ˆ
‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ–’”‘˜‹†‡•–Šƒ–™Š‡”‡–Š‡…‘•‹†‡”ƒ–‹‘†‡…Žƒ”‡†–‘„‡”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–
‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆŽƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡ‹•Ž‡••–Šƒ–Š‡˜ƒŽ—‡ƒ†‘’–‡†‘”ƒ••‡••‡†„›ƒ›ƒ—–Š‘”‹–›‘ˆƒ–ƒ–‡
 Lesson 4 Ȉ Part IV - Income from Capital Gains 267

‘˜‡”‡–ȋ‹Ǥ‡ǤǡDz•–ƒ’˜ƒŽ—ƒ–‹‘ƒ—–Š‘”‹–›dzȌˆ‘”–Š‡’—”’‘•‡‘ˆ’ƒ›‡–‘ˆ•–ƒ’†—–›‹”‡•’‡…–‘ˆ•—…Š–”ƒ•ˆ‡”ǡ
–Š‡˜ƒŽ—‡•‘ƒ†‘’–‡†‘”ƒ••‡••‡†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘ǡƒ†…ƒ’‹–ƒŽ‰ƒ‹••ŠƒŽŽ„‡
…‘’—–‡†‘–Š‡„ƒ•‹•‘ˆ•—…Š…‘•‹†‡”ƒ–‹‘—†‡”‡…–‹‘Ͷͺ‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ǥ”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡•–ƒ’†—–›
˜ƒŽ—‡†‘‡•‘–‡š…‡‡†ͳͳͲΨ‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”ǡ–Š‡…‘•‹†‡”ƒ–‹‘•‘
”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”•ŠƒŽŽǡˆ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–‹‰’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘–”ƒ•ˆ‡”
‘ˆ•—…Šƒ••‡–ǡ„‡†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘Ǥ(Amended by the Finance Act, 2020)
ƒ–‹‘ƒŽ‹œƒ–‹‘‘ˆ•‡…–‹‘ͷͲ‹…ƒ•‡•ƒŽ‡…‘•‹†‡”ƒ–‹‘‹•ϐ‹š‡†—†‡”ƒ‰”‡‡‡–‡š‡…—–‡†’”‹‘”–‘–Š‡†ƒ–‡‘ˆ
”‡‰‹•–”ƒ–‹‘‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ
Ȉ ‡…–‹‘ͷͲ‘ˆ–Š‡…–Šƒ•„‡‡ƒ‡†‡†‹Ž‹‡™‹–Š•‡…–‹‘Ͷ͵–‘’”‘˜‹†‡–Šƒ–™Š‡”‡–Š‡†ƒ–‡‘ˆ–Š‡
ƒ‰”‡‡‡–ϐ‹š‹‰–Š‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘ƒ†–Š‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–
ƒ”‡‘––Š‡•ƒ‡ǡ–Š‡˜ƒŽ—‡ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡„›–Š‡•–ƒ’˜ƒŽ—ƒ–‹‘ƒ—–Š‘”‹–›‘–Š‡†ƒ–‡‘ˆ
ƒ‰”‡‡‡–ƒ›„‡–ƒ‡ˆ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–‹‰ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”•—…Š–”ƒ•ˆ‡”Ǥ
Ȉ –‹•ˆ—”–Š‡”’”‘˜‹†‡†–Šƒ––Š‹•’”‘˜‹•‹‘•ŠƒŽŽƒ’’Ž›‘Ž›‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘”‡ˆ‡””‡†
–‘–Š‡”‡‹ǡ‘”ƒ’ƒ”––Š‡”‡‘ˆǡŠƒ•„‡‡”‡…‡‹˜‡†„›™ƒ›‘ˆƒƒ……‘—–’ƒ›‡‡…Š‡“—‡‘”ƒ……‘—–’ƒ›‡‡„ƒ
†”ƒˆ–‘”„›—•‡‘ˆ‡Ž‡…–”‘‹……Ž‡ƒ”‹‰•›•–‡–Š”‘—‰Šƒ„ƒƒ……‘—–‘”–Š”‘—‰Š•—…Š‘–Š‡”’”‡•…”‹„‡†‡Ž‡…–”‘‹…
‘†‡ƒ•ƒ›„‡’”‡•…”‹„‡†‘‘”„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆ–Š‡ƒ‰”‡‡‡–‘ˆ–”ƒ•ˆ‡”‘ˆ•—…Š‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ
‡ˆ‡”‡…‡–‘ƒŽ—ƒ–‹‘ˆϐ‹…‡”ǣŠ‡”‡
Ȉ –Š‡ƒ••‡••‡‡…Žƒ‹•„‡ˆ‘”‡ƒ••‡••‹‰ˆϐ‹…‡”–Šƒ––Š‡˜ƒŽ—‡•‘ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡„›–Š‡
ƒ—–Š‘”‹–›ˆ‘”’ƒ›‡–‘ˆ•–ƒ’†—–›‡š…‡‡†•–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›ƒ•‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ƒ†
Ȉ –Š‡˜ƒŽ—‡•‘ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡„›•—…Šƒ—–Š‘”‹–›Šƒ•‘–„‡‡†‹•’—–‡†‹ƒ›ƒ’’‡ƒŽ‘”
”‡˜‹•‹‘‘”‘”‡ˆ‡”‡…‡Šƒ•„‡‡ƒ†‡„‡ˆ‘”‡ƒ›‘–Š‡”ƒ—–Š‘”‹–›ǡ…‘—”–‘”‹‰Š‘—”–ǡ–Š‡••‡••‹‰ˆϐ‹…‡”
ƒ›”‡ˆ‡”–Š‡˜ƒŽ—ƒ–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡––‘ƒƒŽ—ƒ–‹‘ˆϐ‹…‡”ƒ•†‡ϐ‹‡†‹•‡…–‹‘ʹȋ”Ȍ‘ˆ–Š‡‡ƒŽ–ŠǦ–ƒš
…–ǡͳͻͷ͹ȏ‡…–‹‘ͷͲȋʹȌȐǤ
Ȉ Š‡”‡ –Š‡ ˜ƒŽ—‡ ƒ•…‡”–ƒ‹‡† „› •—…Š ƒŽ—ƒ–‹‘ ˆϐ‹…‡” ‡š…‡‡†• –Š‡ ˜ƒŽ—‡ ƒ†‘’–‡† ‘” ƒ••‡••‡† ‘”
assessable by the Stamp authority: Š‡˜ƒŽ—‡ƒ†‘’–‡†‘”ƒ••‡••‡†‘”ƒ••‡••ƒ„Ž‡•ŠƒŽŽ„‡–ƒ‡ƒ•–Š‡ˆ—ŽŽ
˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”ȏ‡…–‹‘ͷͲȋ͵ȌȐǤ

Illustration 6:
‡…–‹‘ͷͲƒ‡••’‡…‹ƒŽ’”‘˜‹•‹‘ˆ‘”†‡–‡”‹‹‰–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘‹…ƒ•‡•‘ˆ–”ƒ•ˆ‡”‘ˆȄ
ȋƒȌ Žƒ–ƒ†ƒ…Š‹‡”›
ȋ„Ȍ ƒ†‘”—‹Ž†‹‰
ȋ…Ȍ ŽŽ‘˜ƒ„Ž‡’”‘’‡”–›‘–Š‡”–Šƒ’Žƒ–Ƭƒ…Š‹‡”›ƒ†…‘’—–‡”•Ǥ
ȋ…Ȍ ‘’—–‡”•Ǥ
Solution:ȋ„Ȍƒ†‘”„—‹Ž†‹‰

Illustration 7:
‡–‡”‡†‹–‘ƒƒ‰”‡‡‡–ˆ‘”•ƒŽ‡‘ˆŠ‹•Š‘—•‡Ž‘…ƒ–‡†ƒ– ƒ‹’—”–‘‘ͳ•–’”‹ŽǡʹͲͳͻˆ‘”ƒ–‘–ƒŽ•ƒŽ‡…‘•‹†Ǧ
‡”ƒ–‹‘‘ˆ•ǤͻͲŽƒŠǤ’ƒ‹†ƒƒ‘—–‘ˆ•ǤʹͲŽƒŠ„›ƒ……‘—–’ƒ›‡‡…Š‡“—‡–‘‘–Š‡†ƒ–‡‘ˆƒ‰”‡‡‡–ƒ†
„ƒŽƒ…‡™ƒ•–‘„‡’ƒ‹†ƒ––Š‡–‹‡‘ˆ”‡‰‹•–”ƒ–‹‘‘ˆ†‡‡†Ǥ‘™‡˜‡”ǡ–Š‡…‘˜‡›ƒ…‡†‡‡†…‘—Ž†‘–„‡‡š‡…—–‡†
–‹ŽŽͳ•–‡’–‡„‡”ǡʹͲʹͲǤŠ‡–ƒ’ƒŽ—ƒ–‹‘—–Š‘”‹–›†‡–‡”‹‡†–Š‡˜ƒŽ—‡‘ˆ–Š‡’”‘’‡”–›‘–Š‡†ƒ–‡‘ˆ
”‡‰‹•–”ƒ–‹‘‘ˆ…‘˜‡›ƒ…‡†‡‡†ƒ–•ǤͳʹͲŽƒŠƒ†–Š‡˜ƒŽ—‡†‡–‡”‹‡†„›–Š‡–ƒ’ƒŽ—ƒ–‹‘—–Š‘”‹–›‘
–Š‡†ƒ–‡‘ˆƒ‰”‡‡‡–™ƒ••ǤͳͲͲŽƒŠǤŠ‡˜ƒŽ—‡ˆ‘”–Š‡’—”’‘•‡‘ˆ…ƒ’‹–ƒŽ‰ƒ‹—Ȁ•ͷͲ•ŠƒŽŽ„‡–ƒ‡ǣ
ȋƒȌ •ǤͻͲŽƒŠ ȋ„Ȍ •ǤͳʹͲŽƒŠ
ȋ…Ȍ •ǤʹͲŽƒŠ ȋ†Ȍ •ǤͳͲͲŽƒŠ
Solution: ȋ†Ȍ•ǤͳͲͲƒŠ
 268 Lesson 4 Ȉ EP-TL

Capital Gain on Transfer of Unlisted Shares in a Company [Section 50CA]

Š‹•‡…–‹‘‹•ƒ’’Ž‹…ƒ„Ž‡‹ˆƒƒ••‡••‡‡–”ƒ•ˆ‡”••Šƒ”‡•‹ƒ…‘’ƒ›ȋ‘–Š‡”–Šƒ“—‘–‡†•Šƒ”‡•Ȍƒ–Ž‡••–Šƒ–Š‡
ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š•Šƒ”‡†‡–‡”‹‡†‹ƒ……‘”†ƒ…‡™‹–Š’”‡•…”‹„‡†ƒ‡”Ǥ•—…Š…ƒ•‡ǡ–Š‡ ‘ˆ•—…Š
•Šƒ”‡••ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘‘ˆ…ƒ’‹–ƒŽ‰ƒ‹Ǥ”‘˜‹†‡†
–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›–‘•—…Š–”ƒ•ƒ…–‹‘•—†‡”–ƒ‡„›…‡”–ƒ‹…Žƒ••‘ˆ’‡”•‘•ƒ†
•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†„›Ǥ

Fair Market Value to be Full Value of Consideration in Certain Cases (Section 50D)
ƒ’‹–ƒŽ‰ƒ‹•ƒ”‡…ƒŽ…—Žƒ–‡†‘–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡƒ••ƒŽ‡…‘•‹†‡”ƒ–‹‘‹—•…‘•–‘ˆƒ…“—‹•‹–‹‘Ǥ•‘‡
”‡…‡–”—Ž‹‰•ǡ‹–Šƒ•„‡‡Š‡Ž†–Šƒ–™Š‡”‡–Š‡…‘•‹†‡”ƒ–‹‘‹”‡•’‡…–‘ˆ–”ƒ•ˆ‡”‘ˆƒƒ••‡–‹•‘–†‡–‡”‹ƒ„Ž‡
—†‡”–Š‡‡š‹•–‹‰’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ–Š‡ǡƒ•–Š‡ƒ…Š‹‡”›’”‘˜‹•‹‘ˆƒ‹Ž•ǡ–Š‡‰ƒ‹•ƒ”‹•‹‰ˆ”‘
–Š‡–”ƒ•ˆ‡”‘ˆ•—…Šƒ••‡–•‹•‘––ƒšƒ„Ž‡Ǥ
‡…–‹‘ͷͲŠƒ•„‡‡‹•‡”–‡†–‘’”‘˜‹†‡–Šƒ–ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”•ŠƒŽŽ„‡†‡‡‡†
–‘„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘‹ˆƒ…–—ƒŽ…‘•‹†‡”ƒ–‹‘‹•‘–ƒ––”‹„—–ƒ„Ž‡‘”†‡–‡”‹ƒ„Ž‡Ǥ

REFERENCE TO VALUATION OFFICER [SECTION 55A]

‹–Šƒ˜‹‡™–‘ƒ•…‡”–ƒ‹‹‰–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡…‘…‡”‡†••‡••‹‰ˆˆ‹…‡”ƒ›”‡ˆ‡”
–Š‡˜ƒŽ—ƒ–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡––‘ƒƒŽ—ƒ–‹‘ˆˆ‹…‡”ƒ’’‘‹–‡†„›–Š‡…‘‡Ǧ–ƒš‡’ƒ”–‡–‹–Š‡ˆ‘ŽŽ‘™‹‰
…ƒ•‡•ǣ
ȋƒȌ Š‡”‡–Š‡˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–ƒ•…Žƒ‹‡†„›–Š‡ƒ••‡••‡‡‹•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‡•–‹ƒ–‡ƒ†‡„›ƒ”‡‰‹•–‡”‡†
˜ƒŽ—‡”ȋ™Š‘™‘”•‹ƒ’”‹˜ƒ–‡…ƒ’ƒ…‹–›—†‡”ƒŽ‹…‡…‡‹••—‡†„›–Š‡‘ƒ”†ƒ†Š‹•˜ƒŽ—ƒ–‹‘‹•‘–„‹†‹‰
‘–Š‡••‡••‹‰ˆϐ‹…‡”Ȍǡ„—––Š‡••‡••‹‰ˆϐ‹…‡”‹•‘ˆ–Š‡‘’‹‹‘–Šƒ––Š‡˜ƒŽ—‡•‘…Žƒ‹‡†‹•Ž‡••–Šƒ‹–•
ˆƒ‹”ƒ”‡–˜ƒŽ—‡ȋ—’–‘ —‡͵ͲǡʹͲͳʹȌ™Ǥ‡Ǥˆͳ•– —Ž›ʹͲͳʹǡ–Š‡••‡••‹‰ˆϐ‹…‡”‹•‡ƒ„Ž‡†–‘ƒ‡ƒ”‡ˆ‡”‡…‡
–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”™Š‡”‡‹Š‹•‘’‹‹‘–Š‡˜ƒŽ—‡†‡…Žƒ”‡†„›–Š‡ƒ••‡••‡‡‹•ƒ–˜ƒ”‹ƒ…‡ˆ”‘–Š‡ˆƒ‹”
ƒ”‡–˜ƒŽ—‡ȏ‡…–‹‘ͷͷȋƒȌȐǤ
ȋ„Ȍ Š‡”‡–Š‡••‡••‹‰ˆϐ‹…‡”‹•‘ˆ–Š‡‘’‹‹‘–Šƒ––Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–‡š…‡‡†•–Š‡˜ƒŽ—‡‘ˆ–Š‡
ƒ••‡–„›‘”‡–ŠƒƮʹͷǡͲͲͲ‘”ͳͷ’‡”…‡–‘ˆ–Š‡˜ƒŽ—‡…Žƒ‹‡†„›–Š‡ƒ••‡••‡‡™Š‹…Š‡˜‡”‹•Ž‡••ȏ‡…–‹‘
ͷͷȋ„Ȍȋ‹Ȍ”‡ƒ†™‹–Š—Ž‡ͳͳͳȐǤ
ȋ…Ȍ Š‡”‡ –Š‡ ••‡••‹‰ ˆϐ‹…‡” ‹• ‘ˆ –Š‡ ‘’‹‹‘ –Šƒ–ǡ Šƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ ƒ–—”‡ ‘ˆ ƒ ƒ••‡– ƒ† ”‡Ž‡˜ƒ–
…‹”…—•–ƒ…‡•ǡ‹–‹•‡…‡••ƒ”›•‘–‘ƒ‡ƒ”‡ˆ‡”‡…‡–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”ȏ‡…–‹‘ͷͷȋ„Ȍȋ‹‹ȌȐǤ
–ƒ›„‡‘–‡†–Šƒ–‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ••‡••‡‡Šƒ•‘’–‡†ˆ‘”•—„•–‹–—–‹‘‘ˆ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆƒƒ••‡–
„›‹–•ˆƒ‹”ƒ”‡–˜ƒŽ—‡ƒ•‘ͳǤͶǤͳͻͺͳǡ–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡ƒ•…Žƒ‹‡†„›Š‹ƒ›„‡Š‹‰Š‡”–Šƒ‹–•ƒ…–—ƒŽˆƒ‹”
ƒ”‡–˜ƒŽ—‡ǤŠ‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͷͷȋƒȌƒ†ȋ„Ȍȋ‹Ȍƒ”‡ǡ–Š‡”‡ˆ‘”‡ǡ‘–ƒ’’Ž‹…ƒ„Ž‡–‘•—…Šƒ…ƒ•‡Ǥ–‹•ǡŠ‘™‡˜‡”ǡ
‘’‡–‘–Š‡••‡••‹‰ˆϐ‹…‡”–‘ƒ‡ƒ”‡ˆ‡”‡…‡–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”—†‡”‡…–‹‘ͷͷȋ„Ȍȋ‹‹ȌǤ
‘–‡–Šƒ–‹…ƒ•‡•…‘˜‡”‡†„›‡…–‹‘ͷͷȋƒȌƒ†ȋ„Ȍȋ‹Ȍƒ„‘˜‡‹–‹•–Š‡†—–›‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”–‘”‡ˆ‡”–Š‡
˜ƒŽ—ƒ–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–‹“—‡•–‹‘–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”ƒ––ƒ…Š‡†–‘–Š‡†‡’ƒ”–‡–ƒ†‘––‘†‡…‹†‡–Š‡
“—‡•–‹‘‘ˆ–Š‡˜ƒŽ—ƒ–‹‘‘Š‹•‘™Ǥ

Illustration 8:
Šƒ•–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡•ˆ‘”–Š‡”‡˜‹‘—•‡ƒ”ʹͲʹͳǦʹʹǣ
Particular     Rs.

—•‹‡••…‘‡ ȋǦǦȌ͵ͲǡͲͲͲ ȋ˜‹œǤ„—•‹‡••Ž‘••‘ˆ͵ͲǡͲͲͲȌ

Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹• ͸ǡͲͲͲ
‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹• ͳǡͻͲǡͲͲͲ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 269

†‡’‘•‹–••ǤͻǡͲͲͲ‹’—„Ž‹…’”‘˜‹†‡–ˆ—†ƒ……‘—–Ǥ‘—ƒ”‡”‡“—‹”‡†–‘ϐ‹†‘—–Š‹•–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡•Ǧ
•‡••‡–‡ƒ”ʹͲʹʹǦʹ͵Ǥ
Solution:
‘’—–ƒ–‹‘‘ˆ‡–…‘‡‘ˆ”Ǥˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

Particulars Rs. Rs.

—•‹‡••…‘‡ ȋǦȌ͵ͲǡͲͲͲ
ƒ’‹–ƒŽ‰ƒ‹
Ȃ Š‘”–Ǧ–‡” ͸ǡͲͲͲ
Ȃ ‘‰Ǧ–‡” ͳǡͻͲǡͲͲͲ ͳǡͻ͸ǡͲͲͲ
ͳǡ͸͸ǡͲͲͲ
‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵
ƒš‘‘–ƒŽ‹…‘‡ ‹Ž
Notes:
ȋͳȌ ˆ–Š‡‡–‹…‘‡ȋ‘–Š‡”–ŠƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹Ȍ‹•„‡Ž‘™–Š‡ƒ‘—–‘ˆϐ‹”•–•Žƒ„™Š‹…Š‹•‘––ƒšƒ„Ž‡
ȋ‹Ǥ‡Ǥǡ •Ǥ ʹǡͷͲǡͲͲͲȌǡ –Š‡ –Š‡ Ž‘‰Ǧ–‡” …ƒ’‹–ƒŽ ‰ƒ‹ ‹• –‘ „‡ ”‡†—…‡† „› –Š‡ ƒ‘—– „› ™Š‹…Š –Š‡ –‘–ƒŽ
‹…‘‡ȋ‘–Š‡”–ŠƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹ȌˆƒŽŽ••Š‘”–‘ˆ–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘
–ƒšǤ
ȋʹȌ –Š‹•…ƒ•‡ǡ‡–‹…‘‡ȋ‘–Š‡”–ŠƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹‹•ȋǦȌ•ǤʹͶǡͲͲͲ™Š‹…Š™‹ŽŽ„‡ƒŽŽ‘™‡†–‘„‡
…ƒ””‹‡† ˆ‘”™ƒ”†ǡ ‹Ǥ‡Ǥǡ ‘– –‘ „‡ †‡†—…–‡† ˆ”‘ •Ǥ ʹǡͷͲǡͲͲͲǤ Š‡”‡ˆ‘”‡ǡ Ž‘‰Ǧ–‡” …ƒ’‹–ƒŽ ‰ƒ‹ •ŠƒŽŽ „‡
”‡†—…‡†„›•ǤʹǡͷͲǡͲͲͲǤŠ—•ǡ‘–ƒš•ŠƒŽŽ„‡Ž‡˜‹ƒ„Ž‡‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹Ǥ

ADVANCE MONEY RECEIVED [SECTION 51]

‡…–‹‘ ͷͳ ’”‘˜‹†‡• –Šƒ– ™Š‹Ž‡ …ƒŽ…—Žƒ–‹‰ …ƒ’‹–ƒŽ ‰ƒ‹•ǡ –Š‡ ƒ„‘˜‡ ƒ†˜ƒ…‡ ”‡–ƒ‹‡† „› –Š‡ ƒ••‡••‡‡—•– ‰‘ –‘
”‡†—…‡–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘Ǥ‘™‡˜‡”ǡ‹ˆƒ†˜ƒ…‡Šƒ•„‡‡”‡…‡‹˜‡†ƒ†”‡–ƒ‹‡†„›–Š‡’”‡˜‹‘—•‘™‡”ƒ†‘–
–Š‡ƒ••‡••‡‡Š‹•‡Žˆǡ–Š‡–Š‡•ƒ‡™‹ŽŽ‘–‰‘–‘”‡†—…‡–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡ƒ••‡••‡‡Ǥ
‡…–‹‘ͷ͸ȋʹȌȋ‹šȌ’”‘˜‹†‡•ˆ‘”–Š‡–ƒšƒ„‹Ž‹–›‘ˆƒ›•—‘ˆ‘‡›ǡ”‡…‡‹˜‡†ƒ•ƒƒ†˜ƒ…‡‘”‘–Š‡”™‹•‡‹–Š‡…‘—”•‡
‘ˆ‡‰‘–‹ƒ–‹‘•ˆ‘”–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–Ǥ‘•‡“—‡–Ž›ǡ•—…Š•—•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡
Š‡ƒ†Ǯ…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǯǡ‹ˆ•—…Š•—‹•ˆ‘”ˆ‡‹–‡†‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲͳͶƒ†–Š‡‡‰‘–‹ƒ–‹‘•†‘‘–
”‡•—Ž–‹–”ƒ•ˆ‡”‘ˆ•—…Š…ƒ’‹–ƒŽƒ••‡–Ǥ
‘”†‡”–‘ƒ˜‘‹††‘—„Ž‡–ƒšƒ–‹‘‘ˆ–Š‡ƒ†˜ƒ…‡”‡…‡‹˜‡†ƒ†”‡–ƒ‹‡†ǡ•‡…–‹‘ͷͳ’”‘˜‹†‡•–Šƒ–™Š‡”‡ƒ›•—‘ˆ
‘‡›”‡…‡‹˜‡†ƒ•ƒƒ†˜ƒ…‡‘”‘–Š‡”™‹•‡‹–Š‡…‘—”•‡‘ˆ‡‰‘–‹ƒ–‹‘•ˆ‘”–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–Šƒ•„‡‡
‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”‹ƒ……‘”†ƒ…‡™‹–Š•‡…–‹‘ͷ͸ȋʹȌȋ‹šȌǡ–Š‡ǡ•—…Š
ƒ‘—–•ŠƒŽŽ‘–„‡†‡†—…–‡†ˆ”‘–Š‡…‘•–ˆ‘”™Š‹…Š–Š‡ƒ••‡–™ƒ•ƒ…“—‹”‡†‘”–Š‡™”‹––‡†‘™˜ƒŽ—‡‘”–Š‡ˆƒ‹”
ƒ”‡–˜ƒŽ—‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹…‘’—–‹‰–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘Ǥ
‘™‡˜‡”ǡƒ›•—…Š•—‘ˆ‘‡›ˆ‘”ˆ‡‹–‡†„‡ˆ‘”‡ͳ•–’”‹ŽǡʹͲͳͶǡ™‹ŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘ˆ‘”
…‘’—–‹‰…ƒ’‹–ƒŽ‰ƒ‹•Ǥ
 270 Lesson 4 Ȉ EP-TL

EXEMPTION FROM CAPITAL GAINS

†‡”‡…–‹‘•ͷͶǡͷͶǡͷͶǡ
‡…–‹‘ͳͲȋ͵͹Ȍ‡š‡’–• ͷͶǡͷͶ ǡͷͶ
ƒ†
–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰–‘ ͷͶ‘ˆ–Š‡…–ǡ…ƒ’‹–ƒŽ‰ƒ‹•
ƒ†‹˜‹†—ƒŽȀ ˆ”‘
–”ƒ•ˆ‡”‘ˆƒ‰”‹…—Ž–—”ƒŽ
Žƒ†„›™ƒ›‘ˆ…‘’—Ž•‘”›
ƒ…“—‹•‹–‹‘
ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”
‘ˆ…‡”–ƒ‹…ƒ’‹–ƒŽƒ••‡–•
ƒ”‡‡š‡’–ˆ”‘–ƒš—†‡”
…‡”–ƒ‹…‹”…—•–ƒ…‡•ƒ•
‡š’Žƒ‹‡†„‡Ž‘™

‘Ž›‹ˆ•—…ŠŽƒ†Šƒ•„‡‡
—•‡†ˆ‘”ƒ‰”‹…—Ž–—”ƒŽ
’—”’‘•‡•ˆ‘”‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰ʹ›‡ƒ”•„›•—…Š
†‹˜‹†—ƒŽȀ


”‘ϐ‹–‘•ƒŽ‡‘ˆ’”‘’‡”–›—•‡†ˆ‘”‡•‹†‡–‹ƒŽ—”’‘•‡•ȏ‡…–‹‘ͷͶȐ
Conditions for claiming exemption:
Ȉ ••‡••‡‡ǣ†‹˜‹†—ƒŽ‘”
Ȉ Š‹…Šƒ••‡––‘–”ƒ•ˆ‡”ǣ‡•‹†‡–‹ƒŽŠ‘—•‡ȋ„—‹Ž†‹‰•‘”Žƒ†•ƒ’’—”–‡ƒ––Š‡”‡–‘Ȍ
Ȉ –—•–„‡ƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–
Ȉ …‘‡ˆ”‘•—…ŠŠ‘—•‡•Š‘—Ž†„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘—•‡”‘’‡”–›dz

S.No. Situation Investment

ͳǤ Š‡”‡–Š‡ƒ‘—–‘ˆ…ƒ’‹Ǧ ‡‡•‹†‡–‹ƒŽ‘—•‡‹†‹ƒ•Š‘—Ž†„‡Ȃ
–ƒŽ ‰ƒ‹•‡š…‡‡†••Ǥʹ…”‘”‡ x ’—”…Šƒ•‡†™‹–Š‹ͳ›‡ƒ”„‡ˆ‘”‡‘”ʹ›‡ƒ”•ƒˆ–‡”–Š‡ †ƒ–‡‘ˆ
–”ƒ•ˆ‡”ȋ‘”Ȍ
x …‘•–”—…–‡†™‹–Š‹ƒ’‡”‹‘†‘ˆ͵›‡ƒ”•ƒˆ–‡”–Š‡†ƒ–‡ ‘ˆ–”ƒ•ˆ‡”Ǥ
ʹǤ Š‡”‡ –Š‡ ƒ‘—– ‘ˆ …ƒ’‹Ǧ x ’—”…Šƒ•‡–™‘”‡•‹†‡–‹ƒŽŠ‘—•‡•‹†‹ƒ™‹–Š‹ͳ›‡ƒ”
–ƒŽ‰ƒ‹•†‘‡•‘–‡š…‡‡†•Ǥ „‡ˆ‘”‡‘”ʹ›‡ƒ”•ƒˆ–‡”–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ȋ‘”Ȍ
ʹ …”‘”‡ x …‘•–”—…––™‘”‡•‹†‡–‹ƒŽŠ‘—•‡•‹†‹ƒ™‹–Š‹ƒ’‡”‹‘†‘ˆ
͵›‡ƒ”•ƒˆ–‡”–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”Ǥ

Š‡”‡†—”‹‰ƒ›ƒ••‡••‡–›‡ƒ”ǡ–Š‡ƒ••‡••‡‡Šƒ•‡š‡”…‹•‡†–Š‡‘’–‹‘–‘’—”…Šƒ•‡‘”…‘•–”—…––™‘”‡•‹†‡–‹ƒŽ
Š‘—•‡•‹†‹ƒǡŠ‡•ŠƒŽŽ‘–„‡•—„•‡“—‡–Ž›‡–‹–Ž‡†–‘‡š‡”…‹•‡–Š‡‘’–‹‘ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”ƒ••‡••‡–›‡ƒ”Ǥ
Š‹•‹’Ž‹‡•–Šƒ–‹ˆƒƒ••‡••‡‡Šƒ•ƒ˜ƒ‹Ž‡†–Š‡‘’–‹‘‘ˆ…Žƒ‹‹‰„‡‡ϐ‹–‘ˆ•‡…–‹‘ͷͶ‹”‡•’‡…–‘ˆ’—”…Šƒ•‡‘ˆ–™‘
”‡•‹†‡–‹ƒŽŠ‘—•‡•‹ ƒ‹’—”ƒ† ‘†Š’—”ǡ•ƒ›ǡ‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•‘ˆ•ǤͳǤͷͲ…”‘”‡•ƒ”‹•‹‰ˆ”‘–”ƒ•ˆ‡”‘ˆ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 271

”‡•‹†‡–‹ƒŽŠ‘—•‡ƒ–‘„ƒ›‹–Š‡ǤǤʹͲʹͳǦʹʹ–Š‡ǡŠ‡™‹ŽŽ‘–„‡‡–‹–Ž‡†–‘ƒ˜ƒ‹Ž–Š‡„‡‡ϐ‹–‘ˆ•‡…–‹‘ͷͶƒ‰ƒ‹
‹”‡•’‡…–‘ˆ’—”…Šƒ•‡‘ˆ–™‘”‡•‹†‡–‹ƒŽŠ‘—•‡•‹ˆ—–—”‡‡˜‡–Š‘—‰Š–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆ–Š‡
”‡•‹†‡–‹ƒŽŠ‘—•‡†‘‡•‘–‡š…‡‡†•Ǥʹ…”‘”‡Ǥ

Amount of Exemption under section 54 will be lower of:

Ȉ ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆ”‡•‹†‡–‹ƒŽŠ‘—•‡Ǣ‘”
Ȉ ‘—–‹˜‡•–‡†‹’—”…Šƒ•‡Ȁ…‘•–”—…–‹‘‘ˆ‡™”‡•‹†‡–‹ƒŽŠ‘—•‡‘”Š‘—•‡•Ǥȋ‹…Ž—†‹‰–Š‡ƒ‘—–
†‡’‘•‹–‡†‹
„‡ˆ‘”‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”
ˆ–‹ŽŽ–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰–Š‡”‡–—”‘ˆ‹…‘‡ǡ–Š‡
‘•—…Š–”ƒ•ˆ‡”‘ˆ–Š‡Š‘—•‡‹•‘–—–‹Ž‹•‡†ȋ‹™Š‘Ž‡‘”‹
’ƒ”–Ȍ –‘ ’—”…Šƒ•‡ ‘” …‘•–”—…– ƒ‘–Š‡” Š‘—•‡ǡ –Š‡ –Š‡ „‡‡ϐ‹– ‘ˆ ‡š‡’–‹‘ …ƒ „‡ ƒ˜ƒ‹Ž‡† „› †‡’‘•‹–‹‰ –Š‡
——–‹Ž‹•‡†ƒ‘—–‹–‘ƒ’‹–ƒŽ
ƒ‹•‡’‘•‹–……‘—–…Š‡‡ȋ
Ȍ™‹–Šƒ›•…Š‡†—Ž‡†„ƒǤ
ˆ–Š‡ƒ‘—–†‡’‘•‹–‡†‹–Š‡ƒ’‹–ƒŽ
ƒ‹•……‘—–…Š‡‡‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡ƒ••‡••‡‡Šƒ•…Žƒ‹‡†‡š‡’–‹‘
—†‡”•‡…–‹‘ͷͶ‹•‘–—–‹Ž‹•‡†™‹–Š‹–Š‡•’‡…‹ϐ‹‡†’‡”‹‘†ˆ‘”’—”…Šƒ•‡Ȁ…‘•–”—…–‹‘‘ˆ–Š‡”‡•‹†‡–‹ƒŽŠ‘—•‡ǡ–Š‡
–Š‡——–‹Ž‹•‡†ƒ‘—–ȋˆ‘”™Š‹…Š‡š‡’–‹‘‹•…Žƒ‹‡†Ȍ™‹ŽŽ„‡–ƒš‡†ƒ•‹…‘‡„›™ƒ›‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•
‘ˆ–Š‡›‡ƒ”‹™Š‹…Š–Š‡•’‡…‹ϐ‹‡†’‡”‹‘†‘ˆʹ›‡ƒ”•Ȁ͵›‡ƒ”•‰‡–•‘˜‡”Ǥ
ˆ–Š‡‡™Š‘—•‡‹•ƒŽ•‘–”ƒ•ˆ‡””‡†™‹–Š‹͵›‡ƒ”•ˆ”‘†ƒ–‡‘ˆƒ…“—‹•‹–‹‘‘”…‘•–”—…–‹‘ǡ–Š‡…‘•–‘ˆ‡™Š‘—•‡
™‘—Ž†„‡”‡†—…‡†„›–Š‡…ƒ’‹–ƒŽ‰ƒ‹•‡š‡’–‡†‡ƒ”Ž‹‡”—†‡”•‡…–‹‘ͷͶǤ

Illustration 9:
”ǤŠƒ’—”…Šƒ•‡†ƒ”‡•‹†‡–‹ƒŽŠ‘—•‡‹–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲͲͷǦͲ͸ˆ‘”•Ǥʹ…”‘”‡•ǤŠ‡Š‘—•‡’”‘’‡”–›‹••‘Ž†
ˆ‘”•ǤͳͲ…”‘”‡•‹–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹƒ†–Š‡…ƒ’‹–ƒŽ‰ƒ‹‹•‹˜‡•–‡†‹–™‘”‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”Ǧ
–‹‡•™‘”–Š•ǤͶ…”‘”‡•‡ƒ…ŠǤƒŠ‡…Žƒ‹–Š‡„‡‡ϐ‹–‘ˆ•‡…–‹‘ͷͶ‹”‡•’‡…–‘ˆ„‘–ŠŠ‘—•‡•ǫ

Solution:
š‡’–‹‘—†‡”•‡…–‹‘ͷͶ…ƒ„‡…Žƒ‹‡†‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰
Ž‘‰Ǧ–‡””‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”–›Ǥƒ••‡••‡‡Šƒ•ƒ‘’–‹‘–‘ƒ‡‹˜‡•–‡–‹–™‘”‡•‹†‡–‹ƒŽŠ‘—•‡
’”‘’‡”–‹‡•‹†‹ƒ–‘…Žƒ‹•‡…–‹‘ͷͶ‡š‡’–‹‘ǤŠ‹•‘’–‹‘…ƒ„‡‡š‡”…‹•‡†„›–Š‡ƒ••‡••‡‡‘Ž›‘…‡‹Š‹•
Ž‹ˆ‡–‹‡’”‘˜‹†‡†–Š‡ƒ‘—–‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹†‘‡•‘–‡š…‡‡†•Ǥʹ…”‘”‡•Ǥ‹…‡ǡ–Š‡‰ƒ‹ƒ”‹•‹‰‹
Šƒ†•‘ˆ”ǤŠƒ‹••ǤͷǤͲ͸…”‘”‡•™Š‹…Š‹•‘”‡–Šƒ•Ǥʹ…”‘”‡ǡŠ‡…ƒ‘–…Žƒ‹–Š‡„‡‡ϐ‹–‘ˆ•‡…–‹‘ͷͶ
„›ƒ‹‰‹˜‡•–‡–‹„‘–Š–Š‡Š‘—•‡’”‘’‡”–‹‡•Ǥ‘™‡˜‡”Š‡…ƒ…Žƒ‹–Š‡„‡‡ϐ‹–‘Ž›‹”‡•’‡…–‘ˆ‘‡
”‡•‹†‡–‹ƒŽ’”‘’‡”–›‹˜‡•–‡†Ǥ
Computation of Long Term Capital Gains (LTCG)

Particulars Amount (Rs.)

ƒŽ‡‘•‹†‡”ƒ–‹‘ ͳͲ”‘”‡•
‡•• †‡š‡†‘•–‘ˆ…“—‹•‹–‹‘ȋʹȗ͵ͳ͹Ȁͳͳ͹Ȍ ͷǤͶʹ ”‘”‡•
‘‰‡”ƒ’‹–ƒŽ
ƒ‹•ȋ
Ȍ ͶǤͷͺ”‘”‡•
‡•• ‡†—…–‹‘Ȁ•ͷͶ Ͷ”‘”‡•
ƒšƒ„Ž‡
ͲǤͷͺ”‘”‡•

Transfer of land used for agricultural purposes [Section 54B]

‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘ǣ
Ȉ ••‡••‡‡ǣ†‹˜‹†—ƒŽ‘”
Ȉ Š‡”‡•Š‘—Ž†„‡ƒ–”ƒ•ˆ‡”‘ˆƒ—”„ƒƒ‰”‹…—Ž–—”ƒŽŽƒ†
 272 Lesson 4 Ȉ EP-TL

Ȉ ••‡–—•–„‡‡‹–Š‡”•Š‘”––‡”‘”Ž‘‰–‡”…ƒ’‹–ƒŽƒ••‡–Ǥ
Ȉ —…ŠŽƒ†Šƒ•„‡‡—•‡†ˆ‘”ƒ‰”‹…—Ž–—”ƒŽ’—”’‘•‡•ˆ‘”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰ʹ›‡ƒ”•„›•—…Š†‹˜‹†—ƒŽ
‘”Š‹•’ƒ”‡–‘”
Ȉ ‡•Š‘—Ž†’—”…Šƒ•‡ƒ‘–Š‡”ƒ‰”‹…—Ž–—”ƒŽŽƒ†ȋ—”„ƒ‘””—”ƒŽȌ™‹–Š‹ʹ›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”
Ȉ ˆ•—…Š‹˜‡•–‡–‹•‘–ƒ†‡„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡ǡ–Š‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹Šƒ•–‘
„‡†‡’‘•‹–‡†—†‡”–Š‡

Ȉ ‘—–—–‹Ž‹œ‡†„›–Š‡ƒ••‡••‡‡ˆ‘”’—”…Šƒ•‡‘ˆ‡™ƒ••‡–ƒ†–Š‡ƒ‘—–•‘†‡’‘•‹–‡†•ŠƒŽŽ„‡
†‡‡‡†–‘„‡–Š‡…‘•–‘ˆ‡™ƒ••‡–Ǥ
‘—–‘ˆš‡’–‹‘ǣ
Ȉ ˆ…‘•–‘ˆ‡™ƒ‰”‹…—Ž–—”ƒŽŽƒ†η…ƒ’‹–ƒŽ‰ƒ‹•ǡ‡–‹”‡…ƒ’‹–ƒŽ‰ƒ‹‹•‡š‡’–Ǥ
Ȉ ˆ…‘•–‘ˆ‡™ƒ‰”‹…—Ž–—”ƒŽŽƒ†δ…ƒ’‹–ƒŽ‰ƒ‹•ǡ…ƒ’‹–ƒŽ‰ƒ‹–‘–Š‡‡š–‡–‘ˆ…‘•–‘ˆ‡™ƒ‰”‹…—Ž–—”ƒŽŽƒ†
‹•‡š‡’–Ǥ
ˆ–Š‡‡™ƒ‰”‹…—Ž–—”ƒŽŽƒ†‹•ƒŽ•‘–”ƒ•ˆ‡””‡†™‹–Š‹͵›‡ƒ”•ˆ”‘†ƒ–‡‘ˆƒ…“—‹•‹–‹‘ǡ–Š‡…‘•–‘ˆŽƒ†™‘—Ž†„‡
”‡†—…‡†„›–Š‡…ƒ’‹–ƒŽ‰ƒ‹•‡š‡’–‡†‡ƒ”Ž‹‡”ȋ‘–ƒ’’Ž‹…ƒ„Ž‡‹ˆ–Š‡‡™Žƒ†™ƒ•”—”ƒŽȌ

Compulsory acquisition of lands and buildings [Section 54D]

‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘ǣ
Ȉ ••‡••‡‡ǣ›ƒ••‡••‡‡
Ȉ Š‡”‡—•–„‡ƒ…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘‘ˆŽƒ†Ƭ„—‹Ž†‹‰‘”ƒ›”‹‰Š–‹Žƒ†‘”„—‹Ž†‹‰ˆ‘”‹‰
’ƒ”–‘ˆƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰
Ȉ —…ŠŽƒ†Ƭ„—‹Ž†‹‰•Š‘—Ž†Šƒ˜‡„‡‡—•‡†ˆ‘”„—•‹‡••’—”’‘•‡•‘ˆ–Š‡‹†—•–”‹ƒŽ—†‡”–ƒ‹‰ˆ‘”
ʹ›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”Ǥ
Ȉ Š‡ƒ••‡••‡‡—•–’—”…Šƒ•‡ƒ›ƒ‘–Š‡”Žƒ†Ȁ„—‹Ž†‹‰Ȁ…‘•–”—…–ƒ›„—‹Ž†‹‰ȋˆ‘”•Š‹ˆ–‹‰‘””‡Ǧ
‡•–ƒ„Ž‹•Š‹‰–Š‡‡š‹•–‹‰—†‡”–ƒ‹‰‘”•‡––‹‰—’ƒ‡™‹†—•–”‹ƒŽ—†‡”–ƒ‹‰Ȍ™‹–Š‹͵›‡ƒ”•ˆ”‘
†ƒ–‡‘ˆ–”ƒ•ˆ‡”
Ȉ ˆ•—…Š‹˜‡•–‡–‹•‘–ƒ†‡„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡ǡ–Š‡–Š‡…ƒ’‹–ƒŽ‰ƒ‹Šƒ•–‘
„‡†‡’‘•‹–‡†—†‡”–Š‡
Ǥ‘—–—–‹Ž‹œ‡†„›–Š‡ƒ••‡••‡‡ˆ‘”’—”…Šƒ•‡‘ˆ‡™ƒ••‡–ƒ†–Š‡ƒ‘—–
•‘†‡’‘•‹–‡†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡…‘•–‘ˆ‡™ƒ••‡–Ǥ
•—…Šƒ…ƒ•‡ǡ‹ˆ–Š‡…‘•–‘ˆ–Š‡‡™Žƒ†Ƭ„—‹Ž†‹‰‹•ε–Š‡ƒ’‹–ƒŽ
ƒ‹•ǡ–Š‡‡–‹”‡
™‹ŽŽ„‡‡š‡’–ǡƒ†‹ˆŽ‡••ǡ
–Š‡–Š‡
™‹ŽŽ„‡‡š‡’–‘Ž›–‘–Š‡‡š–‡–‘ˆ–Š‡…‘•–‘ˆ‡™Žƒ†Ƭ„—‹Ž†‹‰Ǥ
ˆ–Š‡‡™Žƒ†Ƭ„—‹Ž†‹‰‹•ƒŽ•‘–”ƒ•ˆ‡””‡†™‹–Š‹͵›‡ƒ”•ˆ”‘†ƒ–‡‘ˆƒ…“—‹•‹–‹‘ǡ–Š‡…‘•–‘ˆ•—…ŠŽƒ†Ƭ„—‹Ž†‹‰
™‘—Ž†„‡”‡†—…‡†„›–Š‡…ƒ’‹–ƒŽ‰ƒ‹•‡š‡’–‡†‡ƒ”Ž‹‡”Ǥ

ƒ’‹–ƒŽ
ƒ‹•š‡’–‹‘‹…ƒ•‡‘ˆ‹˜‡•–‡–•‹•ƒ†‡‹’‡…‹ϐ‹‡†‘†•ȏ‡…–‹‘ͷͶȐ
‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘ǣ
Ȉ ••‡••‡‡ǣ›ƒ••‡••‡‡
Ȉ Š‡”‡•Š‘—Ž†„‡ƒ–”ƒ•ˆ‡”‘ˆƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–ŠǤ
Ȉ —…Šƒ••‡–…ƒƒŽ•‘„‡ƒ†‡’”‡…‹ƒ„Ž‡ƒ••‡–Š‡Ž†ˆ‘”‘”‡–Šƒ͵͸‘–Š•Ǥ
Ȉ Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–”ƒ•ˆ‡”‘ˆ•—…Šƒ••‡–•Š‘—Ž†„‡‹˜‡•–‡†‹ƒŽ‘‰Ǧ–‡”•’‡…‹ϐ‹‡†ƒ••‡–™‹–Š‹
͸‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”Ǥ
Ȉ ‘‰Ǧ–‡” •’‡…‹ϐ‹‡† ƒ••‡–• ™‘—Ž† ‹’Ž›ǡ „‘†• ”‡†‡‡ƒ„Ž‡ ƒˆ–‡” ͷ ›‡ƒ”• ‹••—‡† ‘ ‘” ƒˆ–‡” ͳǤͶǤʹͲͳͺ „›
ƒ–‹‘ƒŽ‹‰Š™ƒ›•—–Š‘”‹–›‘ˆ†‹ƒȋȌǡ‘”—”ƒŽŽ‡…–”‹ϐ‹…ƒ–‹‘‘”’‘”ƒ–‹‘‹‹–‡†‘”ǡ‘™‡” ‹ƒ…‡
‘”’‘”ƒ–‹‘ –†Ǥǡ †‹ƒ ƒ‹Ž™ƒ› ‹ƒ…‡ ‘”’‘”ƒ–‹‘ ‹‹–‡† ‘” ƒ› ‘–Š‡” „‘† ‘–‹ϐ‹‡† „› …‡–”ƒŽ
‰‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǤ
 Lesson 4 Ȉ Part IV - Income from Capital Gains ʹ͹͵

Ȉ Š‡ ƒ••‡••‡‡ •Š‘—Ž† ‡‹–Š‡” –”ƒ•ˆ‡” ‘” …‘˜‡”– Ȁ ƒ˜ƒ‹Ž Ž‘ƒ ‘” ƒ†˜ƒ…‡ ™‹–Š –Š‹• „‘† ƒ• •‡…—”‹–› ˆ‘” ƒ
’‡”‹‘†‘ˆͷ›‡ƒ”•ˆ”‘†ƒ–‡‘ˆƒ…“—‹•‹–‹‘‘ˆ•—…Š„‘†•ǡƒ†‹…ƒ•‡–Šƒ–†‘‡•Šƒ’’‡„‡ˆ‘”‡ͷ›‡ƒ”•ǡ–Š‡
…ƒ’‹–ƒŽ‰ƒ‹‡š‡’–‡†‡ƒ”Ž‹‡”•ŠƒŽŽ„‡–ƒš‡†ƒ•Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹‹–Šƒ–›‡ƒ”Ǥ
–Š‹•…ƒ•‡ǡ–Š‡‡–‹”‡
‘”ƒ‘—–‹˜‡•–‡†‹–Š‡•’‡…‹ϐ‹‡†„‘†•ǡ™Š‹…Š‡˜‡”‹•Ž‘™‡”ǡ‹•‡š‡’–Ǥ
Š‡ƒš‹—‹˜‡•–‡–™Š‹…Š…ƒ„‡ƒ†‡‹‘–‹ϐ‹‡†„‘†•‘”„‘†•‘ˆƒ†ǡ‘—–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•
ƒ”‹•‹‰ˆ”‘–”ƒ•ˆ‡”‘ˆ‘‡‘”‘”‡ƒ••‡–•ǡ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‘”‹‰‹ƒŽƒ••‡–‹•–”ƒ•ˆ‡””‡†ƒ†
‹–Š‡•—„•‡“—‡–ϐ‹ƒ…‹ƒŽ›‡ƒ”…ƒ‘–‡š…‡‡†•ǤͷͲƒ…•Ǥ

Practical Questions (MCQs)

–ƒ–‡™‹–Š”‡ƒ•‘™Š‡–Š‡”–Š‡ˆ‘ŽŽ‘™‹‰•–ƒ–‡‡–•ƒ”‡–”—‡‘”ˆƒŽ•‡™‹–Š”‡‰ƒ”†–‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ
–ƒš…–ǡͳͻ͸ͳˆ‘”–Š‡••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ǣ
ȋͳȌ ƒ’‹–ƒŽ‰ƒ‹‘ˆ•Ǥ͹ͷŽƒŠƒ”‹•‹‰ˆ”‘–”ƒ•ˆ‡”‘ˆŽ‘‰–‡”…ƒ’‹–ƒŽƒ••‡–•™‹ŽŽ„‡‡š‡’–ˆ”‘–ƒš‹ˆ•—…Š
…ƒ’‹–ƒŽ‰ƒ‹‹•‹˜‡•–‡†‹–Š‡„‘†•”‡†‡‡ƒ„Ž‡ƒˆ–‡”–Š”‡‡›‡ƒ”•ǡ‹••—‡†„›—Ȁ•ͷͶ‘ˆ–Š‡…–Ǥ
 •™‡”ǣ ƒŽ•‡ǣ‡…ƒ—•‡–Š‡ƒš‹—Ž‹‹–‘ˆ‹˜‡•–‡–‹„‘†‘ˆ—Ȁ•ͷͶǡ‹•Œ—•–•ǤͷͲŽƒŠ•Ǥ
ȋʹȌ ‘”†‡”–‘‡Œ‘›‡š‡’–‹‘—†‡”•‡…–‹‘ͷͶǡ–Š‡”‡•—Ž–ƒ–Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹••Š‘—Ž†„‡‹˜‡•–‡†‹
•’‡…‹ϐ‹‡†„‘†•™‹–Š‹ƒ’‡”‹‘†‘ˆ̴̴̴̴̴̴ˆ”‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”Ǥ
 ȋƒȌ͵͸‘–Š• ȋ„ȌͶ‘–Š•
 ȋ…Ȍ͸‘–Š• ȋ†Ȍͳʹ‘–Š•Ǥ
 •™‡”ǣȋ…Ȍ͸‘–Š•
ȋ͵Ȍ ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•‘•ƒŽ‡‘ˆƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–‹…–‘„‡”ǡʹͲʹͲ‹••ǤͳͲͷŽƒŠǤŠ‡ƒ••‡••‡‡
‹˜‡•–‡†•ǤͷͲŽƒŠ‹„‘†•‹ƒ”…ŠǡʹͲʹʹƒ†•ǤͷͷŽƒŠ‹„‘†•‹ƒ›ǡʹͲʹʹǤŠ‡ƒ‘—–‘ˆ
‡š‡’–‹‘‡Ž‹‰‹„Ž‡—†‡”•‡…–‹‘ͷͶ‹•Ȅ
 ȋƒȌ‹Ž  ȋ„Ȍ•ǤͷͲŽƒŠ
 ȋ…Ȍ•ǤͷͷŽƒŠ ȋ†Ȍ•ǤͳͲͷŽƒŠǤ
 •™‡”ǣȋ„Ȍ•ǤͷͲŽƒŠ
ȋͶȌ ”Ǥƒ†ƒ•‘Ž†ƒ˜ƒ…ƒ–Žƒ†ˆ‘”•ǤͳʹͲŽƒŠ•‘ͳͲǦͳͲǦʹͲʹͳǤŠ‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘ƒ‘—–•–‘•Ǥ
ͳͺŽƒŠ•Ǥ‡†‡’‘•‹–‡†•ǤͷͲŽƒŠ•‹„‘†•‹ ƒ—ƒ”›ʹͲʹʹƒ†ƒ‘–Š‡”•ǤͷͲŽƒŠ•‹ƒ”…ŠǡʹͲʹʹǤ
Š‡ƒ‘—–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹Ž‹ƒ„Ž‡–‘–ƒšƒˆ–‡”†‡†—…–‹‘—†‡”•‡…–‹‘ͷͶ‹•ǣ
 ȋƒȌ•ǤʹŽƒŠ•  ȋ„Ȍ•ǤͳͺŽƒŠ•
 ȋ…Ȍ•ǤͳͲʹŽƒŠ• ȋ†Ȍ•ǤͷʹŽƒŠ•
 •™‡”ǣȋ†Ȍ•ǤͷʹŽƒŠ•

Tax incentives for Start-ups [Section 54EE]


‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘ǣ
Ȉ ••‡••‡‡ǣ›ƒ••‡••‡
Ȉ Š‹…Šƒ••‡––‘–”ƒ•ˆ‡”ǣ‡‘”‘”‡‘”‹‰‹ƒŽ••‡–•
Ȉ ˜‡•–‡–‘ˆ‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹•‹—‹–•‘ˆƒ•’‡…‹ϐ‹‡†ˆ—†ȋ–‘ϐ‹ƒ…‡•–ƒ”–Ǧ—’•‹†‹ƒȌ‹••—‡†
„‡ˆ‘”‡ͳ•–’”‹ŽǡʹͲͳͻ‘ˆ•—…Šˆ—†ǡƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆ
Ȉ ‹–Š‹͸‘–Š•ˆ”‘†ƒ–‡‘ˆ–”ƒ•ˆ‡”
Ȉ ƒš‹—˜‡•–‡–ŽŽ‘™‡†‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”‘”›‡ƒ”•‹•ͷͲǡͲͲǡͲͲͲ
•—…Š…ƒ•‡ǡ–Š‡‡–‹”‡
‘”ƒ‘—–‹˜‡•–‡†‹–Š‡„‘†•ǡ™Š‹…Š‡˜‡”‹•Ž‘™‡”ǡ‹•‡š‡’–Ǥ
‹–••‘ƒ…“—‹”‡†•Š‘—Ž†‘–„‡–”ƒ•ˆ‡””‡†ˆ‘”ƒ’‡”‹‘†‘ˆ͵›‡ƒ”•ǡƒ†‹ˆ–Šƒ–†‘‡•Šƒ’’‡„‡ˆ‘”‡͵›‡ƒ”•ǡ–Š‡
…ƒ’‹–ƒŽ‰ƒ‹‡š‡’–‡†‡ƒ”Ž‹‡”•ŠƒŽŽ„‡–ƒš‡†ƒ•Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹‹–Šƒ–›‡ƒ”Ǥ
 274 Lesson 4 Ȉ EP-TL

—”–Š‡”ǡ‹ˆ–Š‡ƒ••‡••‡‡–ƒ‡•ƒ›Ž‘ƒ‘”ƒ†˜ƒ…‡‘–Š‡•‡…—”‹–›‘ˆ•—…Š—‹–•ǡŠ‡•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡–”ƒ•Ǧ
ˆ‡””‡†•—…Š—‹–•‘–Š‡†ƒ–‡‘™Š‹…Š•—…ŠŽ‘ƒ‘”ƒ†˜ƒ…‡‹•–ƒ‡Ǥ

Capital gain on the transfer of certain capital assets not to be charged in case of investment in
residential house [Section 54F]
‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘ǣ
x ••‡••‡‡ǣ†‹˜‹†—ƒŽ‘”
x Š‡”‡—•–„‡ƒ–”ƒ•ˆ‡”‘ˆƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–‘–Š‡”–Šƒƒ”‡•‹†‡–‹ƒŽŠ‘—•‡
x Š‡ƒ••‡••‡‡•Š‘—Ž†’—”…Šƒ•‡ͳ”‡•‹†‡–‹ƒŽŠ‘—•‡•‹–—ƒ–‡†‹‹†‹ƒ™‹–Š‹ͳ›‡ƒ”„‡ˆ‘”‡ʹ›‡ƒ”•
ƒˆ–‡”–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”…‘•–”—…–‘‡”‡•‹†‡–‹ƒŽŠ‘—•‡‹†‹ƒ™‹–Š‹͵›‡ƒ”•ˆ”‘†ƒ–‡‘ˆ–”ƒ•ˆ‡”
x ˆ•—…Š‹˜‡•–‡–‹•‘–ƒ†‡„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡ǡ–Š‡–Š‡‡–•ƒŽ‡…‘•‹†‡”Ǧ
ƒ–‹‘Šƒ•–‘„‡†‡’‘•‹–‡†—†‡”–Š‡
Ǥ‘—–—–‹Ž‹œ‡†„›–Š‡ƒ••‡••‡‡ˆ‘”’—”…Šƒ•‡‘”…‘•–”—…Ǧ
–‹‘‘ˆ‡™ƒ••‡–ƒ†–Š‡ƒ‘—–•‘†‡’‘•‹–‡†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡…‘•–‘ˆ‡™ƒ••‡–Ǥ
ˆ–Š‡…‘•–‘ˆ–Š‡‹˜‡•–‡–‹ƒ‡™”‡•‹†‡–‹ƒŽŠ‘—•‡‹•ε–Š‡‡–ƒŽ‡‘•‹†‡”ƒ–‹‘ǡ–Š‡‡–‹”‡
‹•‡š‡’–ǡ
ƒ†‹ˆŽ‡••–Šƒ‡–ƒŽ‡‘•‹†‡”ƒ–‹‘ǡ–Š‡ǡ
‹•‡š‡’–’”‘’‘”–‹‘ƒ–‡Ž›ȋ–Šƒ–‹•ǣ
ȗ˜‡•–‡–‹‡™
‘—•‡Ȁ‡–ƒŽ‡‘•‹†‡”ƒ–‹‘ȌǤ
Š‡”‡‹•ƒŽ•‘ƒ…‘†‹–‹‘ǡ–Šƒ––Š‡ƒ••‡••‡‡•Š‘—Ž†‘–‘™‘”‡–Šƒ‘‡”‡•‹†‡–‹ƒŽŠ‘—•‡‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”
ƒ†•Š‘—Ž†‘–’—”…Šƒ•‡ƒ›‘–Š‡””‡•‹†‡–‹ƒŽŠ‘—•‡™‹–Š‹ʹ›‡ƒ”•…‘•–”—…–ƒ›‘–Š‡””‡•‹†‡–‹ƒŽŠ‘—•‡™‹–Š‹
͵›‡ƒ”•ˆ”‘†ƒ–‡‘ˆ–”ƒ•ˆ‡”‘ˆ‘”‹‰‹ƒŽƒ••‡–ǡƒ†‹ˆ–Šƒ–†‘‡•Šƒ’’‡–Š‡ǡ–Š‡‡–‹”‡
‡š‡’–‡†‡ƒ”Ž‹‡”™‹ŽŽ
„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•
‹–Šƒ–›‡ƒ”Ǥ
††‹–‹‘ƒŽŽ›ǡ‹ˆ–Š‡‡™Š‘—•‡‹•–”ƒ•ˆ‡””‡†™‹–Š‹͵›‡ƒ”•‘ˆ’—”…Šƒ•‡ǡ…ƒ’‹–ƒŽ‰ƒ‹•™‘—Ž†ƒ”‹•‡‘–”ƒ•ˆ‡”ƒ†
–Š‡
‡š‡’–‡ƒ”Ž‹‡”™‘—Ž†„‡–ƒšƒ„Ž‡ƒ•
‹–Šƒ–›‡ƒ”Ǥ
Illustration10:
†‡”™Š‹…Š•‡…–‹‘ǡ–Š‡ƒ••‡••‡‡Šƒ•–‘”‡‹˜‡•––Š‡‡–‹”‡‡–…‘•‹†‡”ƒ–‹‘–‘…Žƒ‹ˆ—ŽŽ‡š‡’–‹‘ˆ‘”–Š‡
Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•‡ƒ”‡††—”‹‰ƒ’”‡˜‹‘—•›‡ƒ”Ȅ
ȋƒȌ‡…–‹‘ͷͶ ȋ„Ȍ‡…–‹‘ͷͶ
ȋ…Ȍ‡…–‹‘ͷͶ
 ȋ†Ȍ‡…–‹‘ͷͶǤ
•™‡”ǣ‡…–‹‘ͷͶ

Exemption of capital gain on transfer of assets of shifting of industrial undertaking from

urban area to a Special Economic Zone [Section 54GA]
‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘ǣ
••‡••‡‡ǣ›••‡••‡‡
Š‡‡š‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ…ƒ–‡‰‘”‹‡•‘ˆƒ••‡••‡•‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰‘–Š‡–”ƒ•ˆ‡”‘ˆϐ‹š‡†
ƒ••‡–•‘–Š‡”–Šƒˆ—”‹–—”‡ƒ†ϐ‹––‹‰•‘ˆ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‡ˆˆ‡…–‡†‹–Š‡…‘—”•‡‘ˆ•Š‹ˆ–‹‰‘ˆ•—…Š‹†—•–”‹ƒŽ
—†‡”–ƒ‹‰–‘ƒ›’‡…‹ƒŽ…‘‘‹…‘‡Ǥ
Š‡…‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‡š‡’–‹‘•ƒ”‡ƒ•—†‡”ǣ
ȋ‹Ȍ Š‡–”ƒ•ˆ‡”‹•‡ˆˆ‡…–‡†‹–Š‡…‘—”•‡‘ˆ‘”‹…‘•‡“—‡…‡‘ˆ•Š‹ˆ–‹‰–Š‡—†‡”–ƒ‹‰ˆ”‘ƒ—”„ƒƒ”‡ƒ–‘
ƒ›’‡…‹ƒŽ…‘‘‹…‘‡ǤŠ‡•’‡…‹ƒŽ…‘‘‹…‘‡ƒ›„‡†‡˜‡Ž‘’‡†‹ƒ›—”„ƒƒ”‡ƒ‘”ƒ›‘–Š‡”ƒ”‡ƒǤ
ͳǤ ›‘–Š‡”ƒ”‡ƒ‡ƒ•ƒƒ”‡ƒ‘–†‡…Žƒ”‡†ƒ•ƒ—”„ƒƒ”‡ƒǤ
ʹǤ Ǯ”„ƒ”‡ƒǯ‡ƒ•ƒ›•—…Šƒ”‡ƒ™‹–Š‹–Š‡Ž‹‹–•‘ˆƒ—‹…‹’ƒŽ…‘”’‘”ƒ–‹‘‘ˆ—‹…‹’ƒŽ‹–›ǡƒ•–Š‡
‡–”ƒŽ
‘˜‡”‡–ƒ›ǡŠƒ˜‹‰”‡‰ƒ”†–‘–Š‡’‘’—Žƒ–‹‘ǡ…‘…‡–”ƒ–‹‘‘ˆ‹†—•–”‹‡•ǡ‡‡†ˆ‘”’”‘’‡”
’Žƒ‹‰‘ˆ–Š‡ƒ”‡ƒƒ†‘–Š‡””‡Ž‡˜ƒ–ˆƒ…–‘”•ǡ„›‰‡‡”ƒŽ‘”•’‡…‹ƒŽ‘”†‡”ǡ†‡…Žƒ”‡–‘„‡ƒ—”„ƒƒ”‡ƒ
ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ•‡…–‹‘Ǥ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 275

͵Ǥ Dz’‡…‹ƒŽ…‘‘‹…‘‡dz‡ƒ•‡ƒ…Š’‡…‹ƒŽ…‘‘‹…‘‡‘–‹ϐ‹‡†—†‡”–Š‡’”‘˜‹•‘–‘—„Ǧ•‡…–‹‘
ȋͶȌ‘ˆ‡…–‹‘͵ƒ†—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘Ͷ‘ˆ–Š‡’‡…‹ƒŽ…‘‘‹…‘‡…–ǡʹͲͲͷȋ‹…Ž—†‹‰
”‡‡”ƒ†‡ƒ†ƒ”‡Š‘—•‹‰‘‡Ȍƒ†‹…Ž—†‡•ƒ‡š‹•–‹‰’‡…‹ƒŽ…‘‘‹…‘‡Ǥȏ‡…–‹‘ʹȋœƒȌ‘ˆ
–Š‡’‡…‹ƒŽ…‘‘‹……–ǡʹͲͲͷȐǤ

ȋ‹‹Ȍ ••‡––”ƒ•ˆ‡””‡†‹•ƒ…Š‹‡”›ǡ’Žƒ–ǡ„—‹Ž†‹‰ǡŽƒ†‘”ƒ›”‹‰Š–‹„—‹Ž†‹‰‘”Žƒ†—•‡†ˆ‘”–Š‡„—•‹‡••‘ˆ
‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‹ƒ—”„ƒƒ”‡ƒǢ
ȋ‹‹‹Ȍ Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰‘–Š‡ƒ••‡––”ƒ•ˆ‡””‡†ƒ›„‡•Š‘”–Ǧ–‡”‘”Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹Ǥ‘”ƒŽŽ›ǡ
‹– ™‹ŽŽ „‡ •Š‘”–Ǧ–‡” …ƒ’‹–ƒŽ ‰ƒ‹ „‡…ƒ—•‡ ‘•– ‘ˆ –Š‡ ƒ••‡–• ‘ˆ –Š‡ ‹†—•–”‹ƒŽ —†‡”–ƒ‹‰ ™‹ŽŽ „‡
†‡’”‡…‹ƒ„Ž‡ƒ••‡–•Ǣ
ȋ‹˜Ȍ Š‡…ƒ’‹–ƒŽ‰ƒ‹‹•—–‹Ž‹œ‡†™‹–Š‹ͳ›‡ƒ”„‡ˆ‘”‡‘”͵›‡ƒ”•ƒˆ–‡”–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ˆ‘”–Š‡•’‡…‹ϐ‹‡†’—”’‘•‡Ǥ
’‡…‹ϐ‹‡†’—”’‘•‡‹…Ž—†‡•–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ȋƒȌ ˆ‘” ’—”…Šƒ•‡ ‘ˆ ‡™ ƒ…Š‹‡”› ‘” ’Žƒ– ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ „—•‹‡•• ‘ˆ –Š‡ †—•–”‹ƒŽ †‡”–ƒ‹‰ ‹ –Š‡
’‡…‹ƒŽ…‘‘‹…‘‡–‘™Š‹…Š–Š‡•ƒ‹†—†‡”–ƒ‹‰‹••Š‹ˆ–‡†Ǣ
ȋ„Ȍ ƒ…“—‹•‹–‹‘‘ˆ„—‹Ž†‹‰‘”Žƒ†‘”…‘•–”—…–‹‘‘ˆ„—‹Ž†‹‰ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡ƒ••‡••‡‡ǯ•„—•‹‡••‹–Š‡
’‡…‹ƒŽ…‘‘‹…‘‡Ǣ
ȋ…Ȍ ‡š’‡•‡•‘•Š‹ˆ–‹‰‘ˆ–Š‡‘Ž†—†‡”–ƒ‹‰ƒ†‹–•‡•–ƒ„Ž‹•Š‡––‘–Š‡’‡…‹ƒŽ…‘‘‹…‘‡Ǣƒ†
ȋ†Ȍ ‹…—””‹‰‘ˆ‡š’‡†‹–—”‡‘•—…Š‘–Š‡”’—”’‘•‡•ƒ••’‡…‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ‘”–Š‹•’—”’‘•‡Ǥ

Capital Gain on Transfer of Residential Property (a house or a plot of land) [Section 54GB]

Š‘…ƒ…Žƒ‹‡š‡’–‹‘
Š‹…Š•’‡…‹ϐ‹‡†ƒ••‡–‹•‡Ž‹‰‹„Ž‡
Š‹…Š ƒ••‡– –Š‡ –ƒš’ƒ›‡” •Š‘—Ž†
ƒ…“—‹”‡ –‘ ‰‡– „‡‡ϐ‹– ‘ˆ
‡š‡’–‹‘
Šƒ– ‹• –Š‡ –‹‡ǦŽ‹‹– “—‹–› •Šƒ”‡• ‹ ƒ Dz‡Ž‹‰‹„Ž‡ …‘’ƒ›dz •Š‘—Ž† „‡ ƒ…“—‹”‡† ‘ ‘” „‡ˆ‘”‡
ˆ‘” ƒ…“—‹”‹‰–Š‡‡™ƒ••‡–•
†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›Ǥ
–”ƒ•ˆ‡”‘ˆƒŽ‘‰–‡””‡•‹†‡–‹ƒŽ’”‘’‡”–›ȋƒŠ‘—•‡‘”ƒ’Ž‘–‘ˆŽƒ†Ȍ
‹ˆ–”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡†—”‹‰’”‹ŽͳǡʹͲͳʹƒ†ƒ”…Š͵ͳǡʹͲͳ͹Ǥȋ‹…ƒ•‡‘ˆ
‡Ž‹‰‹„Ž‡•–ƒ”–—’ǡ”‡•‹†‡–‹ƒŽ’”‘’‡”–›…ƒ„‡–”ƒ•ˆ‡””‡†—’–‘ƒ”…Š͵ͳǡ
ʹͲʹʹǤȏš–‡†‡†ˆ”‘͵ͳ•–ƒ”…Šʹͳ–‘͵ͳ•–ƒ”…Šʹʹ„› ‹ƒ…‡…–ǡʹͲʹͳȐ
“—‹–› •Šƒ”‡• ‘ˆ ʹͷΨ ‘ˆ •Šƒ”‡ …ƒ’‹–ƒŽ ‘” ˜‘–‹‰ ”‹‰Š–• ‹ ƒ Dz‡Ž‹‰‹„Ž‡
…‘’ƒ›
–Š‡†—‡ †ƒ–‡‘ˆ ˆ—”‹•Š‹‰‘ˆ”‡–—”‘ˆ‹…‘‡ —†‡” •‡…–‹‘ͳ͵ͻȋͳȌǤŠ‡
Dz‡Ž‹‰‹„Ž‡…‘’ƒ›dz•Š‘—Ž†—–‹Ž‹œ‡–Š‹•ƒ‘—–ˆ‘”–Š‡’—”…Šƒ•‡‘ˆƒDz‡™
ƒ••‡–dz™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ•—„•…”‹’–‹‘‹‡“—‹–›•Šƒ”‡•Ǥ
‘™—…Š‹•‡š‡’– ˜‡•–‡–‹Dz‡™ƒ••‡–dz„›–Š‡‡Ž‹‰‹„Ž‡…‘’ƒ›‡–•ƒŽ‡…‘•‹†‡”ƒ–‹‘
š…ƒ’‹–ƒŽ‰ƒ‹Ǥš‡’–‹‘…ƒ‘–‡š…‡‡†…ƒ’‹–ƒŽ‰ƒ‹Ǥ
–‹•’‘••‹„Ž‡–‘”‡˜‘‡–Š‡  –Š‡ ˆ‘ŽŽ‘™‹‰ …ƒ•‡•ǡ ‡š‡’–‹‘ ™‹ŽŽ „‡ –ƒ‡ „ƒ… ƒ† –Š‡ ƒ‘—– ‘ˆ
‡š‡’–‹‘ ‡š‡’–‹‘ ȋ‘” ’”‘’‘”–‹‘ƒ–‡ ‡š‡’–‹‘Ȍ ‰‹˜‡ ‡ƒ”Ž‹‡” —†‡” •‡…–‹‘ ͷͶ

 ™‹ŽŽ „‡…‘‡ Ž‘‰Ǧ–‡” …ƒ’‹–ƒŽ ‰ƒ‹ ‘ˆ –Š‡ ƒ••‡••‡‡ ȋ‹Ǥ‡Ǥ –”ƒ•ˆ‡”‘” ‘ˆ
”‡•‹†‡–‹ƒŽ’”‘’‡”–›ȌǤ–•ŠƒŽŽ„‡–ƒšƒ„Ž‡‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡••‡‡‘”
–Š‡‡Ž‹‰‹„Ž‡…‘’ƒ›…‘‹–•–Š‡ˆ‘ŽŽ‘™‹‰†‡ˆƒ—Ž–•Ǧ
ˆ –Š‡ ‡“—‹–› •Šƒ”‡• ‹ –Š‡ ‡Ž‹‰‹„Ž‡ …‘’ƒ› ƒ”‡ •‘Ž† ‘” ‘–Š‡”™‹•‡
–”ƒ•ˆ‡””‡†„›–Š‡ƒ••‡••‡‡™‹–Š‹ͷ›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆƒ…“—‹•‹–‹‘Ǥ
ˆ–Š‡Dz‡™ƒ••‡–dz‹••‘Ž†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†„›–Š‡‡Ž‹‰‹„Ž‡…‘’ƒ›™‹–Š‹
ͷ›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆƒ…“—‹•‹–‹‘Ǥ
ˆ–Š‡†‡’‘•‹–ƒ……‘—–‹•‘–—–‹Ž‹œ‡†ˆ—ŽŽ›‘”’ƒ”–Ž›„›–Š‡‡Ž‹‰‹„Ž‡…‘’ƒ›ˆ‘”
’—”…Šƒ•‹‰ –Š‡ ‡™ ƒ••‡– ™‹–Š‹ ͳ ›‡ƒ” ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ •—„•…”‹’–‹‘ ‹
‡“—‹–›•Šƒ”‡•ȋ„›–Š‡ƒ••‡••‡‡ȌǤ
 276 Lesson 4 Ȉ EP-TL

Extension of Time for Acquiring New Asset or Depositing or Investing Amount of Capital Gain
(Section 54H)
Š‹••‡…–‹‘•–ƒ–‡•–Šƒ–™Š‡”‡–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡‘”‹‰‹ƒŽƒ••‡–‹•„›™ƒ›‘ˆ…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘—†‡”ƒ›Žƒ™
ƒ†–Š‡ƒ‘—–‘ˆ…‘’‡•ƒ–‹‘ƒ™ƒ”†‡†ˆ‘”•—…Šƒ…“—‹•‹–‹‘‹•‘–”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡‘–Š‡†ƒ–‡‘ˆ•—…Š
–”ƒ•ˆ‡”ǡ–Š‡’‡”‹‘†‘ˆƒ…“—‹”‹‰–Š‡‡™ƒ••‡–„›–Š‡ƒ••‡••‡‡”‡ˆ‡””‡†–‘‹‡…–‹‘•ͷͶǡͷͶǡͷͶǡͷͶƒ†ͷͶ ‘”
ˆ‘”†‡’‘•‹–‹‰‘”‹˜‡•–‹‰–Š‡ƒ‘—–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•ŠƒŽŽ„‡‡š–‡†‡†ǤŠ‹•‡š–‡†‡†’‡”‹‘†•ŠƒŽŽ„‡”‡…‘‡†
ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ•—…Š…‘’‡•ƒ–‹‘Ǥ

ƒš‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•‹…ƒ•‡‘ˆ•’‡…‹ϐ‹‡†•‡…—”‹–‹‡•ȏ‡…–‹‘ͳͳʹȐ
’’Ž‹…ƒ„Ž‡‘•ƒŽ‡‘ˆ‡“—‹–›•Šƒ”‡Ž‹•–‡†‘ƒ”‡…‘‰‹•‡†–‘…‡š…Šƒ‰‡‘”—‹–‘ˆ‡“—‹–›‘”‹‡–‡†ˆ—†‘”—‹–‘ˆ
„—•‹‡••–”—•–ǡ™Š‡”‡•—…Š•ƒŽ‡–”ƒ•ƒ…–‹‘‹•…Šƒ”‰‡ƒ„Ž‡–‘•‡…—”‹–‹‡•–”ƒ•ƒ…–‹‘–ƒšȋȌǤ
”‹‘”–‘ͲͳǤͲͶǤʹͲͳͺƒ›
‘•ƒŽ‡‘ˆ•—…Š•’‡…‹ϐ‹‡†•‡…—”‹–‹‡•™ƒ•‡š‡’–—†‡”‡…–‹‘ͳͲȋ͵ͺȌǤŠ‹•‡š‡’–‹‘
Šƒ•„‡‡™‹–Š†”ƒ™„›–Š‡ ‹ƒ…‡…–ǡʹͲͳͺ™Ǥ‡ǤˆǤ••‡••‡–‡ƒ”ʹͲʹͲǦʹͳƒ†ƒ‡™•‡…–‹‘ͳͳʹ‹•‹–”‘†—…‡†
‹–Š‡…‘‡Ǧ–ƒš…–Ǥ
•’‡”–Š‹•‡™•‡…–‹‘ǡ™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡‘ˆƒƒ••‡••‡‡ǡ‹…Ž—†‡•ƒ›
‹…‘‡ȏ™Š‹…Š™ƒ•‡ƒ”Ž‹‡”‡š‡’–
—†‡”•‡…–‹‘ͳͲȋ͵ͺȌ—’–‘͵ͳǤͲ͵ǤʹͲͳͺȐ•ŠƒŽŽ‘™„‡–ƒš‡†ƒ––Š‡”ƒ–‡‘ˆͳͲΨ‘•—…Š…ƒ’‹–ƒŽ‰ƒ‹•‡š…‡‡†‹‰•Ǥ
ͳǡͲͲǡͲͲͲȏ‡š…‡••™‹ŽŽ„‡–ƒšƒ„Ž‡ȐǤŠ‡„‡‡ϐ‹–‘ˆ‹†‡šƒ–‹‘•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†‘•—…Š
Ǥ‡†—…–‹‘•—†‡”
Šƒ’–‡”ȋ•‡…–‹‘ͺͲ–‘ͺͲȌ‘––‘„‡ƒŽŽ‘™‡†ˆ”‘•—…Š
Ǥ‡„ƒ–‡‘ˆ–ƒš—†‡”•‡…–‹‘ͺ͹‘––‘„‡
ƒŽŽ‘™‡†ˆ”‘–Š‡–ƒš’ƒ›ƒ„Ž‡‘•—…Š
Ǥ
Š‡ …‘•– ‘ˆ ƒ…“—‹•‹–‹‘• ˆ‘” …‘’—–‹‰ 
 ‹ ”‡•’‡…– ‘ˆ ƒ Ž‹•–‡† ‡“—‹–› •Šƒ”‡ ƒ…“—‹”‡† „› –Š‡ ƒ••‡••‡‡ „‡ˆ‘”‡
‡„”—ƒ”›ͳǡʹͲͳͺǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡Š‹‰Š‡”‘ˆˆ‘ŽŽ‘™‹‰ǣ
ȋƒȌ Š‡ƒ…–—ƒŽ…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–Ǣ‘”
ȋ„Ȍ ‘™‡”‘ˆˆ‘ŽŽ‘™‹‰ǣ
ȋ‹Ȍ ƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š•Šƒ”‡•ƒ•‘ ƒ—ƒ”›͵ͳǡʹͲͳͺǢ‘”
ȋ‹‹Ȍ …–—ƒŽ•ƒŽ‡•…‘•‹†‡”ƒ–‹‘ƒ……”—‹‰‘‹–•–”ƒ•ˆ‡”

Note: Š‡ ƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆŽ‹•–‡†‡“—‹–›•Šƒ”‡•ŠƒŽŽ‡ƒ‹–•Š‹‰Š‡•–’”‹…‡“—‘–‡†‘–Š‡•–‘…‡š…Šƒ‰‡ƒ•‘

ƒ—ƒ”›͵ͳǡʹͲͳͺǤ

Illustration 11: ”Ǥƒƒ‹•ƒ•ƒŽƒ”‹‡†‡’Ž‘›‡‡Ǥ–Š‡‘–Š‘ˆ ƒ—ƒ”›ǡʹͲͳͶŠ‡’—”…Šƒ•‡†ͳͲͲ•Šƒ”‡•‘ˆ

–†Ǥ̷•ǤͳǡͶͲͲ’‡”•Šƒ”‡ˆ”‘‘„ƒ›–‘…š…Šƒ‰‡ǤŠ‡•‡•Šƒ”‡•™‡”‡•‘Ž†–Š”‘—‰Š‹’”‹ŽǡʹͲʹͳ̷
•Ǥʹǡ͸ͲͲ’‡”•Šƒ”‡ǤŠ‡Š‹‰Š‡•–’”‹…‡‘ˆ–†Ǥ•Šƒ”‡“—‘–‡†‘–Š‡•–‘…‡š…Šƒ‰‡‘ ƒ—ƒ”›͵ͳǡʹͲͳͺ™ƒ••Ǥ
ͳǡͺͲͲ’‡”•Šƒ”‡ǤŠƒ–™‹ŽŽ„‡–Š‡ƒ–—”‡‘ˆ…ƒ’‹–ƒŽ‰ƒ‹‹–Š‹•…ƒ•‡ǫ
Solution: Šƒ”‡•™‡”‡’—”…Šƒ•‡†‹ ƒ—ƒ”›ǡʹͲͳͶƒ†™‡”‡•‘Ž†‹’”‹ŽǡʹͲʹͳǡ‹Ǥ‡Ǥǡ•‘Ž†ƒˆ–‡”Š‘Ž†‹‰–Š‡ˆ‘”
ƒ’‡”‹‘†‘ˆ‘”‡–Šƒͳʹ‘–Š•ƒ†ǡŠ‡…‡ǡ–Š‡‰ƒ‹™‹ŽŽ„‡Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹ȋ
ȌǤ–Š‡‰‹˜‡…ƒ•‡ǡ
•Šƒ”‡•ƒ”‡•‘Ž†ƒˆ–‡”Š‘Ž†‹‰–Š‡ˆ‘”ƒ’‡”‹‘†‘ˆ‘”‡–Šƒͳʹ‘–Š•ǡ•Šƒ”‡•ƒ”‡•‘Ž†–Š”‘—‰Š”‡…‘‰‹•‡†
•–‘…‡š…Šƒ‰‡ƒ†–Š‡–”ƒ•ƒ…–‹‘‹•Ž‹ƒ„Ž‡–‘ǤŠ‡”‡ˆ‘”‡ǡ•‡…–‹‘ͳͳʹ‹•ƒ’’Ž‹…ƒ„Ž‡‹–Š‹•…ƒ•‡Ǥ
Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–†Ǥ•Šƒ”‡••ŠƒŽŽ„‡Š‹‰Š‡”‘ˆǣ
ƒȌ ‘•–‘ˆƒ…“—‹•‹–‹‘ǡ‹Ǥ‡ǤǡͳǡͶͲǡͲͲͲȋͳǡͶͲͲέͳͲͲȌ
„Ȍ ‘™‡”‘ˆǣ
‹Ȍ ‹‰Š‡•–’”‹…‡“—‘–‡†ƒ•‘͵ͳǤͳǤʹͲͳͺǤ‹Ǥ‡ǤǡͳǡͺͲǡͲͲͲȋͳǡͺͲͲέͳͲͲȌǢ
‹‹Ȍ ƒŽ‡•…‘•‹†‡”ƒ–‹‘ǡ‹Ǥ‡Ǥǡʹǡ͸ͲǡͲͲͲȋʹǡ͸ͲͲέͳͲͲȌ

Š—•ǡ–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ•Šƒ”‡••ŠƒŽŽ„‡•ǤͳǡͺͲǡͲͲͲǤ……‘”†‹‰Ž›ǡ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•‹Šƒ†•‘ˆ”Ǥ
ƒƒ™‘—Ž†„‡•ǤͺͲǡͲͲͲȋ‹Ǥ‡Ǥǡʹǡ͸ͲǡͲͲͲȂͳǡͺͲǡͲͲͲȌǤ‹…‡Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•†‘‡•ǯ–‡š…‡‡†•ǤͳǡͲͲǡͲͲͲǡ
‘–Š‹‰‹•–ƒšƒ„Ž‡‹Šƒ†•‘ˆ”ǤƒƒǤ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 277

TAX RATES
Š‘”–Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹•ȋ
Ȍ
Ȉ 
‹•…Ž—„„‡†™‹–Š‘–ƒŽ…‘‡ƒ†–Š‡”‡ˆ‘”‡…Šƒ”‰‡†–‘–ƒšƒ–‘”ƒŽ”ƒ–‡•
Ȉ ‘™‡˜‡”ǡ
‘–”ƒ•ˆ‡”‘ˆŽ‹•–‡†‡“—‹–›•Šƒ”‡•Ȁ—‹–‘ˆƒ‡“—‹–›Ǧ‘”‹‡–‡†ˆ—†Ȁ—‹–‘ˆƒ„—•‹‡••–”—•–ǡ
™Š‡”‡Šƒ•„‡‡’ƒ‹†ǡ
‹•–ƒšƒ„Ž‡̷ͳͷΨ—†‡”•‡…–‹‘ͳͳͳǤ
Ȉ ‘™‡˜‡”ǡ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–”ƒ•ƒ…–‹‘•—†‡”–ƒ‡‹ˆ‘”‡‹‰…—””‡…›‘ƒ”‡…‘‰‹œ‡†
•–‘…‡š…Šƒ‰‡Ž‘…ƒ–‡†‹ƒ–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡ȋ Ȍ™‘—Ž†„‡–ƒšƒ„Ž‡ƒ–ƒ…‘…‡••‹‘ƒŽ
”ƒ–‡‘ˆͳͷΨ‡˜‡–Š‘—‰Š‹•‘–Ž‡˜‹ƒ„Ž‡‹”‡•’‡…–‘ˆ•—…Š–”ƒ•ƒ…–‹‘Ǥ
Ȉ ‡†—…–‹‘•—†‡”Šƒ’–‡”Ǧ…ƒ‘–„‡ƒ˜ƒ‹Ž‡†‹”‡•’‡…–‘ˆ•—…Š•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•‘‡“—‹–›•Šƒ”‡•
‘ˆ ƒ …‘’ƒ› ‘” —‹–• ‘ˆ ƒ ‡“—‹–› ‘”‹‡–‡† —–—ƒŽ ˆ—† ‘” —‹– ‘ˆ ƒ „—•‹‡•• –”—•– ‹…Ž—†‡† ‹ –Š‡ –‘–ƒŽ
‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ
Ȉ ‡šŠƒ—•–‡†„ƒ•‹…‡š‡’–‹‘Ž‹‹–…ƒ„‡‡šŠƒ—•–‡†ƒ‰ƒ‹•–Š‘”–‡”ƒ’‹–ƒŽ
ƒ‹•–ƒšƒ„Ž‡—Ȁ•ͳͳͳˆ‘”
‡•‹†‡–†‹˜‹†—ƒŽƬ‡•‹†‡–
Long-term Capital Gains (LTCG)
Person Rate of tax Particulars
ͳǤ ‡•‹†‡– ’‡”•‘•ǡ –Š‡” ‡šŠƒ—•–‡†„ƒ•‹…‡š‡’–‹‘ …ƒ•‡‘ˆ–”ƒ•ˆ‡”‘ˆ
–Šƒ‘’ƒ‹‡• Ž‹‹–…ƒ„‡‡šŠƒ—•–‡†ƒ‰ƒ‹•– Ž‹•–‡†•‡…—”‹–‹‡•ȋ‘–Š‡”
‡•‹†‡– †‹˜‹†—ƒŽ• ƒ† 
–ƒšƒ„Ž‡—Ȁ•ͳͳʹȀͳͳʹˆ‘” –Šƒ—‹–•Ȍƒ†‡”‘
 ʹͲΨ ‡•‹†‡–†‹˜‹†—ƒŽƬ‡•‹†‡– ‘—’‘‘†•ǡ

ʹͲΨ  ™‘—Ž†„‡–ƒšƒ„Ž‡
‡•‹†‡–•ƒ†•
‡•‹†‡– ‹”•ƒ†• ʹͲΨ ƒ––Š‡Ž‘™‡”‘ˆ–Š‡
ʹǤ ‘‡•–‹…‘’ƒ‹‡• ʹͲΨ ˆ‘ŽŽ‘™‹‰”ƒ–‡•Ȃ

͵Ǥ ‘Ǧ‘”’‘”ƒ–‡ǡ‘ ͳͲΨ ƒ’‹–ƒŽ••‡–•ǡ‘–Š‡”–Šƒ—Ž‹•–‡† ȋͳȌͳͲΨ™‹–Š‘—–

‡•‹†‡–•ƒ†ˆ‘”‡‹‰ •‡…—”‹–‹‡• ‘” •Šƒ”‡• ‘ˆ  …Ž‘•‡Ž› ‹†‡šƒ–‹‘„‡‡ϐ‹–Ǣƒ†
…‘’ƒ‹‡• Š‡Ž†…‘’ƒ‹‡• ȋʹȌʹͲΨ™‹–Š†‡šƒ–‹‘
Ž‹•–‡†•‡…—”‹–‹‡•‘”•Šƒ”‡•‘ˆ „‡‡ϐ‹–Ǥ
ʹͲΨ
…Ž‘•‡Ž› Š‡Ž†…‘’ƒ‹‡• ȋ™‹–Š‘—–
„‡‡ϐ‹–‘ˆ‹†‡šƒ–‹‘‘”ˆ‘”‡‹‰
…—””‡…›ϐŽ—…–—ƒ–‹‘Ȍ
Note: ‹•‘–ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘‹–Š‡…‘’—–ƒ–‹‘‘ˆƒ’‹–ƒŽ
ƒ‹•ǤŽ•‘‘–‡ǡ–Šƒ––Š‡—‡šŠƒ—•–‡†„ƒ•‹…
‡š‡’–‹‘Ž‹‹–…ƒ„‡‡šŠƒ—•–‡†—†‡”
‘Ž›ˆ‘”‹†‹˜‹†—ƒŽ•Ȁ ǯ•

Illustration 12:
ȋͳȌ ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•‘œ‡”‘…‘—’‘„‘†•ƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšȄ
ȋƒȌ ̷ʹͲΨ…‘’—–‡†ƒˆ–‡”‹†‡šƒ–‹‘‘ˆ•—…Š„‘†•
ȋ„Ȍ ̷ͳͲΨ…‘’—–‡†™‹–Š‘—–‹†‡šƒ–‹‘‘ˆ•—…Š„‘†•
ȋ…Ȍ ‹‰Š‡”‘ˆȋƒȌ‘”ȋ„Ȍ
ȋ†Ȍ ‘™‡”‘ˆȋƒȌ‘”ȋ„ȌǤ
•™‡”ǣȋ†Ȍ‘™‡”‘ˆȋƒȌ‘”ȋ„ȌǤ
ȋʹȌ Š‘”–Ǧ–‡” …ƒ’‹–ƒŽ ‰ƒ‹• ƒ”‹•‹‰ ˆ”‘ –Š‡ –”ƒ•ˆ‡” ‘ˆ ‡“—‹–› •Šƒ”‡• ‹ ƒ …‘’ƒ› ‘” —‹–• ‘ˆ ƒ ‡“—‹–›
‘”‹‡–‡†ˆ—†‘”—‹–•‘ˆƒ„—•‹‡••–”—•–…Šƒ”‰‡†™‹–Š•‡…—”‹–›–”ƒ•ƒ…–‹‘–ƒšƒ”‡•—„Œ‡…––‘‹…‘‡Ǧ–ƒš
ƒ––Š‡”ƒ–‡‘ˆȄ
ȋƒȌ ͳͲΨ ȋ„Ȍ ͳͷΨ
ȋ„Ȍ ʹͲΨ ȋ†Ȍ ‘”ƒŽ”ƒ–‡Ǥ
•™‡”ǣȋ„ȌͳͷΨ
278 Lesson 4 Ȉ EP-TL

Case Study 1
”Ǥƒ’‘‘”ȋƒ‰‡͸͹›‡ƒ”•ƒ†”‡•‹†‡–Ȍ‹•ƒ”‡–‹”‡†’‡”•‘‡ƒ”‹‰–‘–ƒŽ’‡•‹‘‘ˆ•ǤͳǡͲͲǡͲͲͲǤ‡’—”…Šƒ•‡†
‰‘Ž†‹‡…‡„‡”ǡʹͲͳͲƒ†•‘Ž†–Š‡•ƒ‡‹’”‹ŽǡʹͲʹͳǤƒšƒ„Ž‡
ƒ‘—–‡†–‘•ǤʹǡͺͲǡͲͲͲǤŠƒ–™‹ŽŽ„‡
Š‹•–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡ǤǤʹͲʹʹǦʹ͵ǫ
Option 1 : ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2 : ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:‘’—–ƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡ʹͲʹʹǦʹ͵‹•ƒ•—†‡”ǣ
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

”‘••ƒŽƒ”›ȋ’‡•‹‘‹…‘‡Ȍ •ǤͳǡͲͲǡͲͲͲ
Less:–ƒ†ƒ”††‡†—…–‹‘Ȁ•ͳ͸ȋ‹ƒȌ •ǤͷͲǡͲͲͲ
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› •ǤͷͲǡͲͲͲ

‘•ƒŽ‡‰‘Ž† •ǤʹǡͺͲǡͲͲͲ
‘–ƒŽ‹…‘‡ •Ǥ͵ǡ͵ͲǡͲͲͲ
ƒš‘
Ȁ•ͳͳʹ‘•Ǥ͵ͲǡͲͲͲ̷ʹͲΨȗ •Ǥ͸ǡͲͲͲ
‡••ǣ‡„ƒ–‡ƒ•’‡”•‡…–‹‘ͺ͹ •Ǥ͸ǡͲͲͲ
ƒšƒˆ–‡”‡„ƒ–‡ 
ȗ‡•‹†‡–‹†‹˜‹†—ƒŽƒ„‘˜‡͸Ͳ›‡ƒ”•„—–„‡Ž‘™ͺͲ›‡ƒ”•‘ˆƒ‰‡Šƒ•„ƒ•‹…‡š‡’–‹‘Ž‹‹–‘ˆ•Ǥ͵ǡͲͲǡͲͲͲǤŠ‹…Š
…ƒ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•–
‘ˆ•ǤʹǡͺͲǡͲͲͲ„—–ƒˆ–‡”–Š‡ƒ†Œ—•–‡–‘ˆ•ƒŽƒ”›‹…‘‡‘ˆ•ǤͷͲǡͲͲͲǤ‡…‡ǡ–Š‡
„ƒŽƒ…‡
–ƒšƒ„Ž‡™‹ŽŽ…‘‡–‘•Ǥ͵ͲǡͲͲͲ̷ʹͲΨǤ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
‘’—–ƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡Ȁ‹•ƒ•—†‡”ǣ

”‘••ƒŽƒ”›ȋ’‡•‹‘‹…‘‡Ȍ •ǤͳǡͲͲǡͲͲͲ
‡••ǣ–ƒ†ƒ”††‡†—…–‹‘Ȁ•ͳ͸ȋ‹ƒȌ Ȁ
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› •ǤͳǡͲͲǡͲͲͲ

‘•ƒŽ‡‘ˆ‰‘Ž† •ǤʹǡͺͲǡͲͲͲ
‘–ƒŽ‹…‘‡ •Ǥ͵ǡͺͲǡͲͲͲ
ƒš‘
Ȁ•ͳͳʹ‘•Ǥͳǡ͵ͲǡͲͲͲ̷ʹͲΨȗ •Ǥʹ͸ǡͲͲͲ
‡••ǣ‡„ƒ–‡ƒ•’‡”•‡…–‹‘ͺ͹ •ǤͳʹǡͷͲͲ
ƒšƒˆ–‡”‡„ƒ–‡ •Ǥͳ͵ǡͷͲͲ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ‘•Ǥͳ͵ͷͲͲ •ǤͷͶͲ
ƒš‹ƒ„‹Ž‹–› •Ǥͳ͵ǡͻͶͲ
ȗȀ•ͳͳͷƒ•‹…‡š‡’–‹‘Ž‹‹–‹•ʹǡͷͲǡͲͲͲ‹””‡•’‡…–‹˜‡‘ˆƒ‰‡Ǥ—–‹Ž‹•‡†‡š‡’–‹‘Ž‹‹–‘ˆ•ǤʹǤͷͲǡͲͲͲ
ͳǡͲͲǡͲͲͲǡ‹Ǥ‡Ǥǡ•ǤͳǡͷͲǡͲͲͲǡ…ƒ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•–
‘ˆ•ǤʹǡͺͲǡͲͲͲǤ‡…‡ǡ–Š‡„ƒŽƒ…‡
–ƒšƒ„Ž‡™‹ŽŽ
…‘‡–‘•Ǥͳǡ͵ͲǡͲͲͲ̷ʹͲΨǤ
Lesson 4 Ȉ Part IV - Income from Capital Gains 279

Case Study 2

”Ǥ
ƒ‰ƒȋƒ‰‡͸ͻ›‡ƒ”•ƒ†‘Ǧ”‡•‹†‡–Ȍ‹•ƒ”‡–‹”‡†’‡”•‘‡ƒ”‹‰–‘–ƒŽ’‡•‹‘‘ˆ•ǤͳǡͲͲǡͲͲͲˆ”‘†‹ƒ
‡’Ž‘›‡”Ǥ‡’—”…Šƒ•‡†ƒ’‹‡…‡‘ˆŽƒ†‹‡ŽŠ‹‹‡…‡„‡”ǡʹͲͳͲƒ†•‘Ž†–Š‡•ƒ‡‹’”‹ŽǡʹͲʹͳǤƒšƒ„Ž‡

ƒ‘—–‡†–‘•Ǥʹǡ͵ͲǡͲͲͲǤŠƒ–™‹ŽŽ„‡Š‹•–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡›‡ƒ”ʹͲʹͳǦʹʹǫ
Option 1 : ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2 : ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution :
’–‹‘ͳ : ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
‘’—–ƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡Ǥ”ǤʹͲʹʹǦʹ͵‹•ƒ•—†‡”ǣ

”‘••ƒŽƒ”›ȋ’‡•‹‘‹…‘‡Ȍ •ǤͳǡͲͲǡͲͲͲ
Less:–ƒ†ƒ”††‡†—…–‹‘Ȁ•ͳ͸ȋ‹ƒȌ ȋ•ǤͷͲǡͲͲͲȌ
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› •ǤͷͲǡͲͲͲ

‘•ƒŽ‡‘ˆ‰‘Ž† •Ǥʹǡ͵ͲǡͲͲͲ
‘–ƒŽ‹…‘‡ •ǤʹǡͺͲǡͲͲͲ
ƒš‘
Ȁ•ͳͳʹ‘•Ǥʹǡ͵ͲǡͲͲͲ̷ʹͲΨȗ •ǤͶ͸ǡͲͲͲ
Less : ‡„ƒ–‡ƒ•’‡”•‡…–‹‘ͺ͹ȋ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘‘”‡•‹†‡–Ȍ 
ƒšƒˆ–‡”‡„ƒ–‡ •ǤͶ͸ǡͲͲͲ
††ǣ‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡••̷ͶΨ •ǤͳǡͺͶͲ
‡––ƒš’ƒ›ƒ„Ž‡ •ǤͶ͹ǡͺͶͲ
ȗ‘Ǧ‡•‹†‡– ‹†‹˜‹†—ƒŽ ȋ‘ˆ ƒ› ƒ‰‡Ȍ Šƒ• „ƒ•‹… ‡š‡’–‹‘ Ž‹‹– ‘ˆ •Ǥ ʹǡͷͲǡͲͲͲǤ Š‹…Š …ƒ‘– „‡ ƒ†Œ—•–‡†
ƒ‰ƒ‹•–
‘ˆ•Ǥʹǡ͵ͲǡͲͲͲ„—––Š‡•ƒ‡…ƒ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•–•ƒŽƒ”›‹…‘‡‘ˆ•ǤͷͲǡͲͲͲǤ‡…‡ǡ–Š‡™Š‘Ž‡
ƒ‘—–‘ˆ
‹•–ƒšƒ„Ž‡̷ʹͲΨǤ
Solution :
’–‹‘ʹ : ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
‘’—–ƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡Ǥ”ǤʹͲʹʹǦʹ͵‹•ƒ•—†‡”ǣ

”‘••ƒŽƒ”›ȋ’‡•‹‘‹…‘‡Ȍ •ǤͳǡͲͲǡͲͲͲ
Less:–ƒ†ƒ”††‡†—…–‹‘Ȁ•ͳ͸ȋ‹ƒȌ Ȁ
…‘‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”› •ǤͳǡͲͲǡͲͲͲ

‘•ƒŽ‡‘ˆ‰‘Ž† •Ǥʹǡ͵ͲǡͲͲͲ
‘–ƒŽ‹…‘‡ •Ǥ͵ǡ͵ͲǡͲͲͲ
ƒš‘
Ȁ•ͳͳʹ‘•Ǥʹǡ͵ͲǡͲͲͲ̷ʹͲΨȗ •ǤͶ͸ǡͲͲͲ
Less : ‡„ƒ–‡ƒ•’‡”•‡…–‹‘ͺ͹ȋ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘‘Ǧ”‡•‹†‡–Ȍ 
ƒšƒˆ–‡”‡„ƒ–‡ •ǤͶ͸ǡͲͲͲ
††ǣ‡ƒŽ–ŠƬ†—…ƒ–‹‘…‡••̷ͶΨ •ǤͳͺͶͲ
‡––ƒš’ƒ›ƒ„Ž‡ •ǤͶ͹ͺͶͲ
ȗ‘Ǧ‡•‹†‡– ‹†‹˜‹†—ƒŽ ȋ‘ˆ ƒ› ƒ‰‡Ȍ Šƒ• „ƒ•‹… ‡š‡’–‹‘ Ž‹‹– ‘ˆ •Ǥ ʹǡͷͲǡͲͲͲǤ Š‹…Š …ƒ‘– „‡ ƒ†Œ—•–‡†
ƒ‰ƒ‹•–
‘ˆ•Ǥʹǡ͵ͲǡͲͲͲ„—––Š‡•ƒ‡…ƒ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•–•ƒŽƒ”›‹…‘‡‘ˆ•ǤͳǡͲͲǡͲͲͲǤ‡…‡ǡ–Š‡
™Š‘Ž‡ƒ‘—–‘ˆ
‹•–ƒšƒ„Ž‡̷ʹͲΨǤ
280 Lesson 4 Ȉ EP-TL

ƒ•‡–—†›͵
”‹›ƒƒˆ—”‹•Š‡•–Š‡ˆ‘ŽŽ‘™‹‰†ƒ–ƒˆ‘”–Š‡‡†‡†͵ͳ•–ƒ”ǯʹʹǤ

Ȉ Š‡Šƒ†—Ž‹•–‡†•Šƒ”‡•‘ˆ–†ǤǡͳǡͲͲǡͲͲͲ‹—„‡”ǡ™Š‹…Š•Š‡•‘Ž†‘͵Ͳ–Š —ǯʹͳˆ‘”ͺͲͲ’‡”

•Šƒ”‡Ǥ
Ȉ Š‡ƒ„‘˜‡•Šƒ”‡•™‡”‡ƒ…“—‹”‡†ƒ•—†‡”ǣ
Ȉ
‹ˆ–ˆ”‘ˆƒ–Š‡”ǣͷͲǤͲͲͲ•Šƒ”‡•‘͵”†ƒ›ǯͻͻȋ ‘ͳ•–’”‹ŽʹͲͲͳ‹•͵ͲͲȌ
Ȉ ‘—•Šƒ”‡•‘ʹͳ•– —‡ʹͲͲͻǣʹͲǡͲͲͲ•Šƒ”‡•
Ȉ —”…Šƒ•‡†͵ͲǡͲͲͲ•Šƒ”‡•‘ͳ•– ƒ—ƒ”›ʹͲͳͳ̷ͷʹͷ’‡”•Šƒ”‡
Š‡”‡ƒˆ–‡”ǡ•Š‡‹˜‡•–‡†–Š‡’”‘…‡‡†•–‘„—›ƒ”‡•‹†‡–‹ƒŽŠ‘—•‡ƒ–ͶǡͲͲǡͲͲǡͲͲͲ‘͵”†ƒ›ǯʹͳƒ†•Š‡™ƒ•
ƒŽ”‡ƒ†›‘™‹‰ƒ”‡•‹†‡–‹ƒŽŠ‘—•‡’”‹‘”–‘–Š‡’—”…Šƒ•‡‘ˆ–Š‹•‘‡Ǥ
‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡–ƒšƒ„Ž‡…ƒ’‹–ƒŽ‰ƒ‹•Ǥ

Solution:

Particulars Number Rate per Share Amount Date

—ŽŽƒŽ—‡‘ˆ‘•‹†‡”ƒ–‹‘ ͳǡͲͲǡͲͲͲ ͹ͷͲ ͺǡͲͲǡͲͲǡͲͲͲ ͵Ͳ–Š —ǯʹ
‡••ǣ †‡š‡†

‹ˆ–ˆ”‘ˆƒ–Š‡” ͷͲǡͲͲͲ ͵ͲͲ Ͷǡ͹ͷǡͷͲǡͲͲͲ ͵”†ƒ›ǯͻͻ
‘—• ʹͲǡͲͲͲ Ͳ Ǧ ʹͳ•– —ǯͲͻ
—”…Šƒ•‡† ͵ͲǡͲͲͲ ͷʹͷ ʹǡͻͺǡͻ͸ǡ͹Ͳ͹ ͳ•– ƒǯͳͳ
‘–ƒŽ†‡š‡† ͹ǡ͹ͶǡͶ͸ǡ͹Ͳ͹

ʹͷǡͷ͵ǡʹͻ͵
‡™‡•‹†‡–‹ƒŽ‘—•‡ ͶǡͲͲǡͲͲǡͲͲͲ

‡š‡’– ͳʹǡ͹͸ǡ͸Ͷ͹
ƒšƒ„Ž‡
ͳʹǡ͹͸ǡ͸Ͷ͸

Note:
ȋƒȌ Š‡„‘—••Šƒ”‡•™‡”‡‰”ƒ–‡†ƒˆ–‡”ͳ•–’”ǯͲͳƒ†Š‡…‡–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‹•
ȋ„Ȍ ‘”–Š‡•Šƒ”‡•‰‹ˆ–‡†„›Š‡”ˆƒ–Š‡”’”‹‘”–‘ͳ•–’”ǯͲͳǡ–Š‡ ƒ•‘ͳ•–’”ǯͲͳ™‘—Ž†„‡…‘•‹†‡”‡†ƒ•
–Š‡‘•–‘ˆ…“—‹•‹–‹‘
ȋ…Ȍ †‡š‡†ˆ‘”–Š‡‰‹ˆ–‡†•Šƒ”‡•–Š‡”‡ˆ‘”‡‹•ͷͲǡͲͲͲȗ͵ͲͲȀͳͲͲȗ͵ͳ͹
ȋ†Ȍ †‡š‡†ˆ‘”–Š‡ƒ…“—‹”‡†•Šƒ”‡•–Š‡”‡ˆ‘”‡‹•͵ͲǡͲͲͲȗͷʹͷȀͳ͸͹ȗ͵ͳ͹
ȋ‡Ȍ –Š‡…ƒ•‡ƒ„‘˜‡–Š‡‡…‡••ƒ”›…‘†‹–‹‘•—Ȁ•ͷͶ Šƒ˜‡„‡‡ˆ—Žϐ‹ŽŽ‡†ƒ†–Š‡”‡ˆ‘”‡•Š‡‹•‡–‹–Ž‡†–‘ƒ
’”‘’‘”–‹‘ƒ–‡‡š‡’–‹‘ˆ”‘
ȋ‹Ǥ‡ǤǡͶ”‘”‡•Ȁͺ”‘”‡•ȗʹͷǡͷ͵ǡʹͻ͵Ȍ

Case Study 4
”•ǤŠƒ–‹‡˜‹ǡƒ”‡•‹†‡–‹†‹˜‹†—ƒŽǡ•‘Ž†Š‡””‡•‹†‡–‹ƒŽ’”‘’‡”–›‘ͳͺ–Š —Žǯʹͳˆ‘”͹ͷǡͲͲǡͲͲͲǤŠ‡Šƒ†
’—”…Šƒ•‡†–Š‡•ƒ‡ˆ‘”ʹͷǡͲͲǡͲͲͲ‘͵”†ƒ›ʹͲͲ͸ǤŠ‡’ƒ‹†ͳǡͲͲǡͲͲͲ–‘™ƒ”†•„”‘‡”ƒ‰‡ˆ‘”–Š‡•ƒŽ‡Ǥ
Š‡•–ƒ’†—–›˜ƒŽ—ƒ–‹‘™ƒ•ͳͲͲǡͲͲǡͲͲͲǤ
Š‡„‘—‰Š–ƒ‘–Š‡”’”‘’‡”–›ˆ‘”ʹͲǡͲͲǡͲͲͲ‘ͳͶ–Š‡…ǯʹͳƒ††‡’‘•‹–‡†ƒ‘–Š‡”ͷǡͲͲǡͲͲͲ‘ʹͳ•–
Lesson 4 Ȉ Part IV - Income from Capital Gains 281

—ǯʹʹ‹–Š‡…ƒ’‹–ƒŽ‰ƒ‹†‡’‘•‹–•…Š‡‡™‹–Šˆ‘”…‘•–”—…–‹‘‘ˆƒƒ††‹–‹‘ƒŽϐŽ‘‘”‹–Š‡’”‘’‡”–›Ǥ
Š‡ƒŽ•‘†‡’‘•‹–‡†ͷǡͲͲǡͲͲͲ‘͵Ͳ–Š‘˜ǯʹͳ‹–Š‡‘†•Ǥ‘’—–‡–Š‡ƒ’‹–ƒŽ
ƒ‹•ƒ†ƒš‹ƒ„‹Ž‹–›Ǥ
••—‹‰–Š‡ƒ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷ

Solution :

Particulars INR
—ŽŽƒŽ—‡‘ˆ‘•‹†‡”ƒ–‹‘ ͳǡͲͲǡͲͲǡͲͲͲ
”‘‡”ƒ‰‡ ͳǡͲͲǡͲͲͲ
‡–ƒŽ‡‘•‹†‡”ƒ–‹‘ ͻͻǡͲͲǡͲͲͲ
‡••ǣ†‡š‡†ȏʹͷŽƒŠȗ͵ͳ͹ȀͳʹʹȐ ͸ͶǡͻͷǡͻͲʹ

͵ͶǡͲͶǡͲͻͺ
š‡’–‹‘—Ȁ•ͷͶ ʹͷǡͲͲǡͲͲͲ
š‡’–‹‘—Ȁ•ͷͶ ͷǡͲͲǡͲͲͲ
Taxable LTCG (Total Income) 4,04,098
ƒšƒ›ƒ„Ž‡ Ȃ

Notes:
ƒȌ •‡”‡…–‹‘ͷͲǡ‹…ƒ•‡–Š‡ƒ…–—ƒŽ•ƒŽ‡…‘•‹†‡”ƒ–‹‘‹•Ž‡••–Šƒ–Š‡•–ƒ’†—–›˜ƒŽ—‡ǡ–Š‡•–ƒ’†—–›
˜ƒŽ—ƒ–‹‘™‘—Ž†„‡–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘ǤǤ
„Ȍ š‡’–‹‘•—Ȁ•ͷͶƒ”‡–‘™ƒ”†•’—”…Šƒ•‡‘ˆƒ‘–Š‡”Š‘—•‡™‹–Š‹ʹ›‡ƒ”•‘ˆ†ƒ–‡‘ˆ–”ƒ•ˆ‡”ƒ†‡’‘•‹–
‹ƒ’‹–ƒŽ
ƒ‹•……‘—–•…Š‡‡ȋ
Ȍ‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰”‡–—”‘ˆ…‘‡Ǥ
…Ȍ š‡’–‹‘—Ȁ•ͷͶ‹•–‘™ƒ”†•‹˜‡•–‡–‹•’‡…‹ϐ‹‡†„‘†•ȋȌ™‹–Š‹͸‘–Š•ˆ”‘†ƒ–‡‘ˆ–”ƒ•ˆ‡”Ǥ
†Ȍ ‹…‡–Š‡ƒšƒ„Ž‡
ǡ™Š‹…Š‹•Ž‡••–Šƒ„ƒ•‹…‡š‡’–‹‘Ž‹‹–‘ˆ•ǤʹǡͷͲǡͲͲͲǡ–Š‡”‡ˆ‘”‡‘–ƒš™‹ŽŽ„‡’ƒ›ƒ„Ž‡Ǥ

Case Study 5
”Ǥ’—”…Šƒ•‡†ƒŠ‘—•‡‘ͲͳǤͲͶǤʹͲͲͳˆ‘”•ǤʹǡͲͲǡͲͲͲƒ†‹…—””‡†•Ǥ͵ǡͲͲǡͲͲͲ‘‹’”‘˜‡‡–‘ͲͳǤͲ͹ǤʹͲͲʹ
ƒ†‹–™ƒ•”‡…‡‹˜‡†„›Š‹••‘”Ǥ‘ͲͳǤͲ͹ǤʹͲͳͳƒ†”Ǥ‹…—””‡†•ǤͶǡͲͲǡͲͲͲ‘‹’”‘˜‡‡–‘ͲͳǤͲ͹ǤʹͲͳ͵
ƒ† –Š‡ Š‘—•‡ ™ƒ• •‘Ž† „› Š‹ ‘ ͲͳǤͲ͹ǤʹͲʹͳ ˆ‘” •Ǥ ͳǡͲͲǡͲͲǡͲͲͲǤ ‡ ‹• ‡–‹–Ž‡† –‘ ‡†—…–‹‘ —Ȁ• ͺͲ ‘ˆ
•ǡͳǡͲͲǡͲͲͲǤ‘’—–‡–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ”Ǥ
Option 1 : ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2 : ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution :
’–‹‘ͳ : ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Particulars INR
—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘ ͳǡͲͲǡͲͲǡͲͲͲ
‡••ǣ†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘αʹǡͲͲǡͲͲͲȀͳͲͲš͵ͳ͹ ȋ͸ǡ͵ͶǡͲͲͲȌ
‡••ǣ†‡š‡†‘•–‘ˆ‹’”‘˜‡‡–α͵ǡͲͲǡͲͲͲȀͳͲͷš͵ͳ͹ ȋͻǡͲͷǡ͹ͳͶȌ
‡••ǣ†‡š‡†‘•–‘ˆ‹’”‘˜‡‡–αͶǡͲͲǡͲͲͲȀʹʹͲš͵ͳ͹ ȋͷǡ͹͸ǡ͵͸ͶȌ
282 Lesson 4 Ȉ EP-TL

‘‰–‡”ƒ’‹–ƒŽ
ƒ‹• ͹ͺǡͺ͵ǡͻʹʹ

”‘••‘–ƒŽ…‘‡ ͹ͺǡͺ͵ǡͻʹʹ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ ȋͳǡͲͲǡͲͲͲȌ
‘–ƒŽ…‘‡ȋ”‘—†‡†‘ˆˆ—Ȁ•ʹͺͺȌ ͹͹ǡͺ͵ǡͻʹͲ
‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›
ƒš‘
•Ǥ͹ͷǡ͵͵ǡͻʹͲȋ͹͹ǡͺ͵ǡͻʹͲȂʹǡͷͲǡͲͲͲȌ̷ʹͲΨ ͳͷǡͲ͸ǡ͹ͺͶ
††ǣ—”…Šƒ”‰‡̷ͳͲΨ ͳǡͷͲǡ͸͹ͺ
ƒš„‡ˆ‘”‡Š‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡•• ͳ͸ǡͷ͹ǡͶ͸ʹ
††ǣ̷ͶΨ ͸͸ǡʹͻͺ
ƒš‹ƒ„‹Ž‹–› ͳ͹ǡʹ͵ǡ͹͸Ͳ

Option 2 : Assessee has opted for Section 115BAC

Particulars INR
—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘ ͳǡͲͲǡͲͲǡͲͲͲ
‡••ǣ†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘αʹǡͲͲǡͲͲͲȀͳͲͲš͵ͳ͹ ȋ͸ǡ͵ͶǡͲͲͲȌ
‡••ǣ†‡š‡†‘•–‘ˆ‹’”‘˜‡‡–α͵ǡͲͲǡͲͲͲȀͳͲͷš͵ͳ͹ ȋͻǡͲͷǡ͹ͳͶȌ
‡••ǣ†‡š‡†‘•–‘ˆ‹’”‘˜‡‡–αͶǡͲͲǡͲͲͲȀʹʹͲš͵ͳ͹ ȋͷǡ͹͸ǡ͵͸ͶȌ
‘‰–‡”ƒ’‹–ƒŽ
ƒ‹• ͹ͺǡͺ͵ǡͻʹʹ

”‘••‘–ƒŽ…‘‡ ͹ͺǡͺ͵ǡͻʹʹ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ Ȁ
‘–ƒŽ…‘‡ȋ”‘—†‡†‘ˆˆ—Ȁ•ʹͺͺȌ ͹ͺǡͺ͵ǡͻʹͲ
‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›
ƒš‘
•Ǥ͹͹ǡͶͲǡ͹͵Ͳȋ͹ͺǡͺ͵ǡͻʹͲȂʹǡͷͲǡͲͲͲȌ̷ʹͲΨ ͳͷǡʹ͸ǡ͹ͺͶ
††ǣ—”…Šƒ”‰‡̷ͳͲΨ ͳǡͷʹǡ͸͹ͺ
ƒš„‡ˆ‘”‡Š‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡•• ͳ͸ǡ͹ͻǡͶ͸ʹ
††ǣ̷ͶΨ ͸͹ǡͳ͹ͺ
ƒš‹ƒ„‹Ž‹–›ȋ Ȍ ͳ͹ǡͶ͸ǡ͸ͶͲ

Case Study 6
–ƒ–‡ǡ‰‹˜‹‰”‡ƒ•‘ǡ™Š‡–Š‡”–Š‡ƒ••‡–‹•Š‘”––‡”‘”‘‰–‡”‹–Š‡…ƒ•‡•‰‹˜‡„‡Ž‘™Ȃ
ͳǤ ’—”…Šƒ•‡•ƒŠ‘—•‡’”‘’‡”–›‘ƒ”…ŠͳͲǡʹͲʹͲƒ†–”ƒ•ˆ‡”•‹–‘ —‡͸ǡʹͲʹͳ
ʹǤ ’—”…Šƒ•‡•Ž‹•–‡†•Šƒ”‡•‹ƒ†‹ƒ‘’ƒ›‘ƒ”…ŠͳͲǡʹͲʹͲƒ†–”ƒ•ˆ‡”•‹–‘ —‡͸ǡʹͲʹͳ
͵Ǥ ƒ…“—‹”‡•—‹–•‘ˆ‡“—‹–›‘”‹‡–‡†—–—ƒŽˆ—†‘ —Ž›͹ǡʹͲʹͲƒ†Š‡–”ƒ•ˆ‡”•–Š‡•‡—‹–•‘ —Ž›ͳͲǡ
ʹͲʹͳƬ’—”…Šƒ•‡•†‹ƒ‘†•‘‡’–‡„‡”ͳʹǡʹͲͳͺƒ†‰‹ˆ–•–Š‡•ƒ‡–‘Š‹•ˆ”‹‡†‘‡…‡„‡”͵ͳǡ
ʹͲʹͲǤ–”ƒ•ˆ‡”•–Š‡ƒ••‡–•‘…–‘„‡”ʹͲǡʹͲʹͳǤ
Lesson 4 Ȉ Part IV - Income from Capital Gains ʹͺ͵

ͶǤ ’—”…Šƒ•‡••Šƒ”‡•‹ƒ…‘’ƒ›–Š”‘—‰Šƒ„”‘‡”ȋƒ–‡‘ˆ’—”…Šƒ•‡„›–Š‡„”‘‡”ǣ‘˜‡„‡”ʹͳǡ
ʹͲʹͲ–Š‡…‘’ƒ›–”ƒ•ˆ‡”••Šƒ”‡•‹–Š‡ƒ‡‘ˆǣ ƒ—ƒ”›ͷǡʹͲʹͳȌǤŠ‡•‡•Šƒ”‡•ƒ”‡–”ƒ•ˆ‡””‡†„›
‘‡…‡„‡”ʹͲǡʹͲʹͳǤ
Solution:
Taxpayer Asset Minimum period to become Short term or long term
long-term capital asset
L House property ʹͶ‘–Š• Š‘”––‡”
M Listed Shares ͳʹ‘–Š• ‘‰–‡”
N Units of EOMF ͳʹ‘–Š• ‘‰–‡”
P Diamonds ͵͸‘–Š• ‘‰–‡”
P Listed Shares ͳʹ‘–Š• ‘‰–‡”

Case Study 7
–ƒ–‡ǡ‰‹˜‹‰”‡ƒ•‘•–Š‡ƒ••‡••‡–›‡ƒ”ˆ‘”™Š‹…Š…ƒ’‹–ƒŽ‰ƒ‹‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡…ƒ•‡•‰‹˜‡„‡Ž‘™Ȃ
ͳǤ  •‡ŽŽ• ƒ Š‘—•‡ ’”‘’‡”–› –‘  ƒ• ’‡” •ƒŽ‡ †‡‡† †ƒ–‡† ƒ”…Š ͵Ͳǡ ʹͲʹͳǤ Š‡ †‘…—‡–• ƒ”‡ǡ Š‘™‡˜‡”ǡ
”‡‰‹•–‡”‡†‘’”‹Ž͸ǡʹͲʹͳǤ
ʹǤ •‡ŽŽ•ƒŠ‘—•‡’”‘’‡”–›–‘ƒ•’‡”ƒ‰”‡‡‡––‘•ƒŽ‡†ƒ–‡†ƒ›͸ǡʹͲʹͲǡ’ƒ›•–Š‡…‘•‹†‡”ƒ–‹‘‘–Š‡
•ƒ‡†ƒ›ǤŠ‡’‘••‡••‹‘‹•‰‹˜‡‘ —‡ͳǡʹͲʹͲǡ–Š‡•ƒŽ‡†‡‡†‹•›‡––‘„‡”‡‰‹•–‡”‡†Ǥ
͵Ǥ  •‡ŽŽ• •Šƒ”‡• –‘  ‘ ƒ”…Šǡ ͳǡ ʹͲʹͲǤ ”ƒ•ˆ‡” †‡‡† ‹• •‹‰‡† ‘ –Š‡ •ƒ‡ †ƒ›Ǥ Šƒ”‡ …‡”–‹ϐ‹…ƒ–‡• ƒ”‡
†‡Ž‹˜‡”‡†ƒ––Š‡–‹‡‘ˆ•‹‰‹‰–Š‡–”ƒ•ˆ‡”†‡‡†ǤŠƒ”‡•ƒ”‡ǡŠ‘™‡˜‡”ǡ–”ƒ•ˆ‡””‡†‹–Š‡ƒ‡‘ˆ‹–Š‡
”‡…‘”†•‘ˆ–Š‡…‘’ƒ›‘ƒ›ͳͲǡʹͲʹͲǤ
Solution:
ͳǤ “Transfer” takes effectˆ”‘–Š‡†ƒ–‡‘ˆ‡š‡…—–‹‘‘ˆ–Š‡•ƒŽ‡†‡‡†ȋƒ†‘–ˆ”‘–Š‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘
Š‡”‡ˆ‘”‡ ‹ –Š‹• …ƒ•‡ –”ƒ•ˆ‡” –ƒ‡• ’Žƒ…‡ †—”‹‰ –Š‡ ’Ȁ› ʹͲͳͻǦʹͲ ƒ†ǡ …‘•‡“—‡–Ž› ƒ’‹–ƒŽ
ƒ‹ ‹•
–ƒšƒ„Ž‡ˆ‘”–Š‡ȀʹͲʹͳǦʹʹǤ
ʹǤ ˜‡‹ˆ•ƒŽ‡†‡‡†‹•‘–”‡‰‹•–‡”‡†ǡƒ‹‘˜ƒ„Ž‡’”‘’‡”–›‹•–”ƒ•ˆ‡””‡†™Š‡–Š‡–Š”‡‡…‘†‹–‹‘•‘ˆ
•‡…–‹‘ͷ͵‘ˆ–Š‡”ƒ•ˆ‡”‘ˆ”‘’‡”–›…–ƒ”‡•ƒ–‹•ϐ‹‡†ǤŠ‡–Š”‡‡…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†‘ —‡ͳǡ
ʹͲʹͲǤŠ‡”‡ˆ‘”‡…ƒ’‹–ƒŽ‰ƒ‹•‹•–ƒšƒ„Ž‡ˆ‘”–Š‡ȀʹͲʹͳǦʹʹǤ
͵Ǥ Š‡ƒ‘˜ƒ„Ž‡’”‘’‡”–›‹•†‡Ž‹˜‡”‡†’—”•—ƒ––‘ƒ…‘–”ƒ…––‘•‡ŽŽǡ–Š‡‘™‡”•Š‹’‹•–”ƒ•ˆ‡””‡†Ǥ–Š‹•
…ƒ•‡ǡ‘™‡”•Š‹’‹•–”ƒ•ˆ‡””‡†‘ƒ”…ŠͳǡʹͲʹͳƒ†ǡ…‘•‡“—‡–Ž›
ƒ‹‹•–ƒšƒ„Ž‡ˆ‘”–Š‡ƒ••‡••‡–
›‡ƒ”ʹͲʹͳǦʹʹǤ
Ȉ ‡…–‹‘•Ͷͷ–‘ͷͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ†‡ƒŽ™‹–Š…ƒ’‹–ƒŽ‰ƒ‹•Ǥ‡…–‹‘Ͷͷ‘ˆ–Š‡…–ǡ’”‘˜‹†‡•–Šƒ–
ƒ›’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‡ˆˆ‡…–‡†‹–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽǡ•ƒ˜‡ƒ•
‘–Š‡”™‹•‡’”‘˜‹†‡†‹‡…–‹‘•ͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶ ǡͷͶ
ǡͷͶ
ƒ†ͷͶ„‡…Šƒ”‰‡ƒ„Ž‡–‘
‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ
ƒ‹•dzƒ†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹
™Š‹…Š–Š‡–”ƒ•ˆ‡”–‘‘’Žƒ…‡Ǥ
Ȉ ‡…–‹‘ʹȋͳͶȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–†‡ϐ‹‡•–Š‡–‡”Dz…ƒ’‹–ƒŽƒ••‡–dz–‘‡ƒ•”‘’‡”–›‘ˆƒ›‹†Š‡Ž†„›
ƒƒ••‡••‡‡™Š‡–Š‡”‘”‘–…‘‡…–‡†™‹–ŠŠ‹•„—•‹‡••‘”’”‘ˆ‡••‹‘„—–†‘‡•‘–‹…Ž—†‡ƒ›•–‘…Ǧ‹Ǧ
–”ƒ†‡ǡ’‡”•‘ƒŽ‡ˆˆ‡…–•ǡƒ‰”‹…—Ž–—”ƒŽŽƒ†‹†‹ƒǡ͸Ψ
‘Ž†‘†•ǡ’‡…‹ƒŽ‡ƒ”‡”‘†•ǡ
‘Ž†‡’‘•‹–‘†•Ǥ
Ȉ Š‡‡••‡–‹ƒŽ”‡“—‹”‡‡–ˆ‘”–Š‡‹…‹†‡…‡‘ˆ–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•‹•–Š‡–”ƒ•ˆ‡”‘ˆƒǮ…ƒ’‹–ƒŽƒ••‡–ǯǤǦ
›…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰ƒ•ƒ”‡•—Ž–‘ˆ–”ƒ•ˆ‡”‘ˆƒ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–‹•‘™ƒ••Š‘”–Ǧ–‡”
…ƒ’‹–ƒŽ‰ƒ‹ǤDzŠ‘”––‡”dz…ƒ’‹–ƒŽƒ••‡–‡ƒ•ƒ…ƒ’‹–ƒŽƒ••‡–Š‡Ž†„›ƒƒ••‡••‡‡ˆ‘”‘–‘”‡–Šƒ
–Š‹”–›Ǧ•‹š‘–Š•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ‹–•–”ƒ•ˆ‡”Ǥ–Š‡…ƒ•‡‘ˆ…ƒ’‹–ƒŽƒ••‡–•ȋ„‡‹‰
 284 Lesson 4 Ȉ EP-TL

‡“—‹–›‘”’”‡ˆ‡”‡…‡•Šƒ”‡‹ƒ…‘’ƒ›ȌŠ‡Ž†„›ƒƒ••‡••‡‡ˆ‘”‘–‘”‡–Šƒͳʹ‘–Š•‹‡†‹ƒ–‡Ž›
’”‹‘”–‘‹–•–”ƒ•ˆ‡”Ǥ
Ȉ ••‡–•‘–Š‡”–Šƒ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•ƒ”‡‘™ƒ•ǮŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•ǯƒ†–Š‡‰ƒ‹•ƒ”‹•‹‰
–Š‡”‡ˆ”‘ƒ”‡‘™ƒ•ǮŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ǯǤ‡…–‹‘Ͷͺ‘ˆ–Š‡…–’”‘˜‹†‡•–Šƒ––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡
—†‡”–Š‡Š‡ƒ†Ǯ…ƒ’‹–ƒŽ‰ƒ‹•ǯ•ŠƒŽŽ„‡…‘’—–‡†„›†‡†—…–‹‰ˆ”‘–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†
‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡ƒ‘—–‘ˆ‡š’‡†‹–—”‡‹…—””‡†™Š‘ŽŽ›ƒ†
‡š…Ž—•‹˜‡Ž›‹…‘‡…–‹‘™‹–Š•—…Š–”ƒ•ˆ‡”ƒ†–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ƒ†–Š‡…‘•–‘ˆ
ƒ›‹’”‘˜‡‡––Š‡”‡–‘Ǥ
Ȉ Ǯ‘•–‘ˆƒ…“—‹•‹–‹‘ǯ‘ˆ‰‘‘†™‹ŽŽ‘ˆƒ„—•‹‡••‘”ƒ”‹‰Š––‘ƒ—ˆƒ…–—”‡ǡ’”‘†—…‡‘”’”‘…‡••ƒ›ƒ”–‹…Ž‡‘”
–Š‹‰ǡ–‡ƒ…›”‹‰Š–•ǡ•–ƒ‰‡…ƒ””‹ƒ‰‡’‡”‹–•‘”Ž‘‘Š‘—”•‹•‹–Š‡…ƒ•‡‘ˆƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–„›–Š‡
ƒ••‡••‡‡„›’—”…Šƒ•‡ˆ”‘ƒ’”‡˜‹‘—•‘™‡”ǡ…‘•–‘ˆƒ…“—‹•‹–‹‘‡ƒ•–Š‡ƒ‘—–‘ˆ–Š‡’—”…Šƒ•‡’”‹…‡Ǣ
ƒ†‹ƒ›‘–Š‡”…ƒ•‡…‘•–‘ˆƒ…“—‹•‹–‹‘•ŠƒŽŽ„‡‹ŽǤ
Ȉ ‘•–‘ˆ‹’”‘˜‡‡–‡ƒ•ƒŽŽ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹ƒ‹‰ƒ›ƒ††‹–‹‘•‘”ƒŽ–‡”ƒ–‹‘•„›–Š‡ƒ••‡••‡‡
ƒˆ–‡”‹–„‡…ƒ‡Š‹•’”‘’‡”–›ƒ†™Š‡”‡–Š‡…ƒ’‹–ƒŽƒ••‡–„‡…ƒ‡–Š‡’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡„›ƒ›‘ˆ–Š‡
‘†‡••’‡…‹ϐ‹‡†‹‡…–‹‘ͶͻȋͳȌ„›–Š‡’”‡˜‹‘—•‘™‡”ƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Ȉ †‡” ‡…–‹‘• ͷͶǡ ͷͶǡ ͷͶǡ ͷͶǡ ͷͶǡ ͷͶ ǡ ͷͶ
 ƒ† ͷͶ ‘ˆ –Š‡ …–ǡ …ƒ’‹–ƒŽ ‰ƒ‹• ƒ”‹•‹‰ ˆ”‘ –Š‡
–”ƒ•ˆ‡”‘ˆ…‡”–ƒ‹…ƒ’‹–ƒŽƒ••‡–•ƒ”‡‡š‡’–ˆ”‘–ƒš—†‡”…‡”–ƒ‹…‹”…—•–ƒ…‡•Ǥ
Š‡•‡ƒ”‡‡ƒ–ˆ‘””‡Ǧ…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘Ǥ

Practical Questions (MCQs)

ͳǤ ƒ’‹–ƒŽƒ••‡–‡š…Ž—†‡•ƒŽŽ‡š…‡’–Ǧ
ȋƒȌ –‘…Ǧ‹Ǧ–”ƒ†‡ ȋ„Ȍ ‡”•‘ƒŽ‡ˆˆ‡…–•
ȋ…Ȍ ‡™‡ŽŽ‡”›  ȋ†Ȍ ‰”‹…—Ž–—”ƒŽŽƒ†‹†‹ƒǤ
•™‡”ǣȋ…Ȍ ‡™‡ŽŽ‡”›

ʹǤ –‡”•‘ˆ•‡…–‹‘ʹȋͶʹȌǡŽ‹•–‡†•‡…—”‹–‹‡•ƒ”‡–”‡ƒ–‡†ƒ•Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–ǡ‹ˆ–Š‡›ƒ”‡Š‡Ž†ˆ‘”ƒ’‡”‹‘†
‘ˆ‘”‡–ŠƒȄ
ȋƒȌ ͳʹ‘–Š• ȋ„Ȍ ͵͸‘–Š•
ȋ…Ȍ ʹͶ‘–Š• ȋ†Ȍ Ͷͺ‘–Š•Ǥ
•™‡”ǣȋƒȌͳʹ‘–Š•

͵Ǥ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ”‡“—‹•‹–‡ˆ‘”…Šƒ”‰‹‰‹…‘‡Ǧ–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•Ȅ
ȋƒȌ Š‡–”ƒ•ˆ‡”—•–Šƒ˜‡„‡‡‡ˆˆ‡…–‡†‹–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”
ȋ„Ȍ Š‡”‡—•–„‡ƒ‰ƒ‹ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–
ȋ…Ȍ ƒ’‹–ƒŽ‰ƒ‹••Š‘—Ž†‘–„‡‡š‡’–—†‡”•‡…–‹‘ͷͶ
ȋ†Ȍ ƒ’‹–ƒŽ‰ƒ‹••Š‘—Ž†‘–„‡‡š‡’–—†‡”•‡…–‹‘ͷͶǤ
•™‡”ǣȋƒȌŠ‡–”ƒ•ˆ‡”—•–Šƒ˜‡„‡‡‡ˆˆ‡…–‡†‹–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”
ͶǤ ƒŒƒ–’—”…Šƒ•‡†ƒ…ƒ”ˆ‘”Š‹•’‡”•‘ƒŽ—•‡ˆ‘”•ǤͷǡͲͲǡͲͲͲ‹’”‹ŽǡʹͲͳͺƒ†•‘Ž†–Š‡•ƒ‡ˆ‘”•ǤͷǡͷͲǡͲͲͲ
‹ —Ž›ǡʹͲʹͳǤŠ‡–ƒšƒ„Ž‡…ƒ’‹–ƒŽ‰ƒ‹•‹•Ȅ
ȋƒȌ ‹Ž  ȋ„Ȍ •ǤͷǡͷͲǡͲͲͲ
ȋ…Ȍ •ǤͷͲǡͲͲͲ ȋ†Ȍ •ǤͶǡͲͲǡͲͲͲ

 •™‡”ǣȋƒȌ‹Žȏƒ”ˆ‘”’‡”•‘ƒŽ—•‡‹•‘–…ƒ’‹–ƒŽƒ••‡–ǤŠ‡”‡ˆ‘”‡ǡ‘…ƒ’‹–ƒŽ‰ƒ‹•ŠƒŽŽƒ”‹•‡ǤȐ
 Lesson 4 Ȉ Part IV - Income from Capital Gains 285

ͷǤ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ…ƒ’‹–ƒŽƒ••‡–ˆ‘””Ǥƒ‘™Š‘‹•‡’Ž‘›‡†‹ƒ’—„Ž‹…•‡…–‘”„ƒǫ
ȋƒȌ ”„ƒŽƒ†
ȋ„Ȍ ‰”‹…—Ž–—”ƒŽŽƒ†™‹–Š‹ʹ•ˆ”‘Ž‘…ƒŽŽ‹‹–•‘ˆ—‹…‹’ƒŽ‹–›
ȋ…Ȍ‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡‹••—‡†—†‡”
‘Ž†‘‡–‹•ƒ–‹‘…Š‡‡ǡʹͲͳͷ
ȋ†Ȍ ‡™‡ŽŽ‡”›

 •™‡”ǣȋ…Ȍ‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡‹••—‡†—†‡”
‘Ž†‘‡–‹•ƒ–‹‘…Š‡‡ǡʹͲͳͷ
͸Ǥ ƒ†‘”„—‹Ž†‹‰ǡ‘”„‘–Šǡ‹ˆ–”ƒ•ˆ‡””‡†‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲʹͳ•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒŽ‘‰–‡”…ƒ’‹–ƒŽƒ••‡–ǡ
‹ˆ‹–‹•„‡‹‰Š‡Ž†‹‡†‹ƒ–‡Ž›’”‹‘”–‘–Š‡†ƒ–‡‘ˆ‹–•–”ƒ•ˆ‡”ˆ‘”‘”‡–Šƒǣ
ȋƒȌ ͵͸‘–Š• ȋ„Ȍ ͳʹ‘–Š•
ȋ…Ȍ ʹͶ‘–Š• ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•ǣȋ…Ȍ

CASE LAWS
1. Whether, for the purpose of computing the period of holding of the property, the date of allotment
Ž‡––‡”‹••—‡†„›–Š‡„—‹Ž†‡”‘ˆ–Š‡ϐŽƒ–‘”–Š‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‘ˆ–Š‡’”‘’‡”–›Šƒ•–‘„‡…‘•‹†‡”‡†
for determining the nature of capital asset – long-term or short-term?
CIT v. S.R. Jeyashankar (2015) [Madras High Court]
 ‡ˆˆ‡…–ǡ–Š‡Ƭȋ‹ƒ•‹‹Žƒ”…ƒ•‡ȌŠ‡Ž†–Šƒ––Š‡ƒŽŽ‘––‡‡‰‡–•–Š‡–‹–Ž‡–‘–Š‡’”‘’‡”–›‘‹••—ƒ…‡‘ˆ
ƒŽŽ‘–‡–Ž‡––‡”ƒ†’ƒ›‡–‹‹•–ƒŽŽ‡–•‹•‘Ž›ƒ…‘•‡“—‡–‹ƒŽƒ…–—’‘™Š‹…Š†‡Ž‹˜‡”›‘ˆ’‘••‡••‹‘
–‘–Š‡’”‘’‡”–›ϐŽ‘™•ǤŠ‡ƒ†”ƒ•ƒŽ•‘‘–‡†–Šƒ––Š‡—Œƒ„Ƭƒ”›ƒƒŠƒ†–ƒ‡ƒ•‹‹Žƒ”˜‹‡™
‹‹‘†—ƒ” ƒ‹ǯ•…ƒ•‡Ǥ……‘”†‹‰Ž›ǡ–Š‡ƒ†”ƒ•Š‡Ž†–Šƒ––Š‡ƒ••‡••‡‡Šƒ†”‹‰Š–Ž›…Žƒ‹‡†–Š‡
„‡‡ϐ‹– ‘ˆ Ž‘‰Ǧ–‡” …ƒ’‹–ƒŽ ‰ƒ‹ǡ •‹…‡ –Š‡ Š‘Ž†‹‰ ’‡”‹‘† ‡š…‡‡†‡† ͵͸ ‘–Š• ȋ‹Ǥ‡Ǥǡ ˆ”‘ ʹʹǤͲʹǤʹͲͲͷǡ
„‡‹‰–Š‡†ƒ–‡‘ˆƒ‰”‡‡‡–ǡ–‘ͳͲǤͲͶǤʹͲͲͺǡ„‡‹‰–Š‡†ƒ–‡‘ˆ•ƒŽ‡‘ˆ’”‘’‡”–›ȌǤ
2. What would be the period of holding to determine whether the capital gains on renunciation of
right to subscribe for additional shares is short-term or long-term?
Navin Jindal v. ACIT (2010) [Supreme Court]
 ‘”†‡–‡”‹‹‰™Š‡–Š‡”–Š‡…ƒ’‹–ƒŽ‰ƒ‹•‘”‡—…‹ƒ–‹‘‘ˆ”‹‰Š––‘•—„•…”‹„‡ˆ‘”ƒ††‹–‹‘ƒŽ•Šƒ”‡•‹•
•Š‘”––‡”‘”Ž‘‰Ǧ–‡”ǡ–Š‡’‡”‹‘†‘ˆŠ‘Ž†‹‰™‘—Ž†„‡ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š”‹‰Š––‘•—„•…”‹„‡
ˆ‘”ƒ††‹–‹‘ƒŽ•Šƒ”‡•…‘‡•‹–‘‡š‹•–‡…‡—’–‘–Š‡†ƒ–‡‘ˆ”‡—…‹ƒ–‹‘‘ˆ•—…Š”‹‰Š–Ǥ
͵Ǥ Š‡–Š‡”‹†‡šƒ–‹‘„‡‡ϐ‹–‹”‡•’‡…–‘ˆ–Š‡‰‹ˆ–‡†ƒ••‡–•ŠƒŽŽƒ’’Ž›ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š–Š‡
ƒ••‡–™ƒ•ϐ‹”•–Š‡Ž†„›–Š‡ƒ••‡••‡‡‘”ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š–Š‡•ƒ‡™ƒ•ϐ‹”•–ƒ…“—‹”‡†„›–Š‡
previous owner?
CIT v. Manjula J. Shah (2013) [Bombay High Court]
 Š‡‹†‡š‡†…‘•–‘ˆƒ…“—‹•‹–‹‘‹…ƒ•‡‘ˆ‰‹ˆ–‡†ƒ••‡–Šƒ•–‘„‡…‘’—–‡†™‹–Š”‡ˆ‡”‡…‡–‘–Š‡›‡ƒ”‹™Š‹…Š
–Š‡’”‡˜‹‘—•‘™‡”ϐ‹”•–Š‡Ž†–Š‡ƒ••‡–ƒ†‘––Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡••‡‡„‡…ƒ‡–Š‡‘™‡”‘ˆ–Š‡ƒ••‡–Ǥ
ͶǤ ‘—Ž†ƒƒ••‡••‡‡„‡‡–‹–Ž‡†–‘‡š‡’–‹‘—†‡”•‡…–‹‘ͷͶ‹”‡•’‡…–‘ˆ’—”…Šƒ•‡‘ˆ–™‘ϐŽƒ–•ǡ
adjacent to each other and having a common meeting point?
CIT v. Syed Ali Adil (2013) [Andhra Pradesh High Court]

 Š‡†Š”ƒ”ƒ†‡•Š‹‰Š‘—”–ǡ‘–Š‡„ƒ•‹•‘ˆ–Š‡ƒ„‘˜‡”—Ž‹‰•‘ˆ–Š‡ƒ”ƒ–ƒƒ‹‰Š‘—”–ǡŠ‡Ž†–Šƒ–

‹–Š‹•…ƒ•‡ǡ–Š‡ƒ••‡••‡‡™ƒ•‡–‹–Ž‡†–‘‹˜‡•–‡–‹„‘–Š–Š‡ϐŽƒ–•’—”…Šƒ•‡†„›Š‹ǡ•‹…‡–Š‡›™‡”‡
ƒ†Œƒ…‡––‘‡ƒ…Š‘–Š‡”ƒ†Šƒ†ƒ…‘‘‡‡–‹‰’‘‹–ǡ–Š—•ǡƒ‹‰‹–ƒ•‹‰Ž‡”‡•‹†‡–‹ƒŽ—‹–Ǥ
286 Lesson 4 Ȉ EP-TL

5. Can exemption under section 54EC be denied on account of the bonds being issued after six months
of the date of transfer even though the payment for the bonds was made by the assessee within the
six month period?
Hindustan Unilever Ltd. v. DCIT (2010) [Bombay High Court]
 ‘”–Š‡’—”’‘•‡‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷͶǡ–Š‡†ƒ–‡‘ˆ‹˜‡•–‡–„›–Š‡ƒ••‡••‡‡—•–„‡”‡‰ƒ”†‡†
ƒ•–Š‡†ƒ–‡‘™Š‹…Š’ƒ›‡–‹•ƒ†‡ǤŠ‡‹‰Š‘—”–ǡ–Š‡”‡ˆ‘”‡ǡŠ‡Ž†–Šƒ–‹ˆ•—…Š’ƒ›‡–‹•™‹–Š‹ƒ
’‡”‹‘†‘ˆ•‹š‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ǡ–Š‡ƒ••‡••‡‡™‘—Ž†„‡‡Ž‹‰‹„Ž‡–‘…Žƒ‹‡š‡’–‹‘—†‡”
•‡…–‹‘ͷͶǤ
6. Sale of a Running Business with all Assets and Liabilities is a Slump Sale, would not attract Sec
50(2) of Income Tax Act
CIT v. Equinox Solution Pvt. Ltd
   ˜Ǥ “—‹‘š ‘Ž—–‹‘ ˜–Ǥ –†ǡ –Š‡ –™‘ǦŒ—†‰‡ „‡…Š ‘ˆ –Š‡ —’”‡‡ ‘—”– Š‡Ž† –Šƒ– –Š‡ •ƒŽ‡ ‘ˆ ƒ
”—‹‰„—•‹‡••™‹–ŠƒŽŽ‹–•ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•™‘—Ž†‘–„‡…‘˜‡”‡†„›•‡…–‹‘ͷͲȋʹȌ‘ˆ–Š‡…‘‡
ƒš…–•‹…‡•—…Š–”ƒ•ƒ…–‹‘•ƒ”‡•Ž—’•ƒŽ‡‘ˆƒDzŽ‘‰–‡”…ƒ’‹–ƒŽƒ••‡–dz™‹–Š‹–Š‡ƒ„‹–‘ˆ•‡…–‹‘
ͶͺȋʹȌ‘ˆ–Š‡…‘‡ƒš…–Ǥ
 Š‡ˆƒ…–—ƒŽ•‡––‹‰•‘ˆ–Š‡…ƒ•‡ƒ”‡–Šƒ––Š‡ƒ••‡••‡‡Ǧ‘’ƒ›•‘Ž†‹–•‡–‹”‡„—•‹‡••Ǧƒ”—‹‰…‘…‡”
–‘ƒ‘–Š‡”‘’ƒ›Ǥ ‘”–Š‡›‡ƒ”—†‡”…‘•‹†‡”ƒ–‹‘ǡ–Š‡ƒ••‡••‡‡ϐ‹Ž‡†”‡–—”…Žƒ‹‹‰†‡†—…–‹‘—†‡”
•‡…–‹‘Ͷͺ‘ˆ–Š‡…–•–ƒ–‹‰–Šƒ––Š‡•ƒŽ‡‹•‹–Š‡ƒ–—”‡‘ˆDz•Ž—’•ƒŽ‡dz‘ˆ–Š‡‰‘‹‰…‘…‡”„‡‹‰‹
–Š‡ƒ–—”‡‘ˆŽ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹‹–Š‡Šƒ†•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
 Š‡ƒ••‡••‹‰‘ˆϐ‹…‡””‡Œ‡…–‡†–Š‡…‘–‡–‹‘‘ˆ–Š‡ƒ••‡••‡‡ƒ††‡‹‡†–Š‡…Žƒ‹„›‹˜‘‹‰•‡…–‹‘
ͷͲȋʹȌǤ‡™ƒ•‘ˆ–Š‡˜‹‡™–Šƒ––Š‡–”ƒ•ƒ…–‹‘™ƒ•‹–Š‡ƒ–—”‡‘ˆ•Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹ƒ••’‡…‹ϐ‹‡†‹
‡…–‹‘ͷͲȋʹȌ‘ˆ–Š‡…–Ǥ
 ••‡••‡‡•—……‡••ˆ—ŽŽ›ƒ’’‡ƒŽ‡†–Š‡‹’—‰‡†‘”†‡”„‡ˆ‘”‡–Š‡ϐ‹”•–ƒ’’‡ŽŽƒ–‡ƒ—–Š‘”‹–›ǤŠ‘—‰Š–Š‡‘”†‡”
™ƒ•…ŠƒŽŽ‡‰‡†„‡ˆ‘”‡–Š‡ƒ†‹‰Š‘—”–ǡ–Š‡‡˜‡—‡…‘—Ž†ǯ–•‡…—”‡ƒ›”‡Ž‹‡ˆǤ‹••ƒ–‹•ϐ‹‡†„›–Š‡
‘”†‡”•‘ˆ–Š‡ƒ’’‡ŽŽƒ–‡ƒ—–Š‘”‹–‹‡•ƒ†–Š‡‹‰Š‘—”–ǡ–Š‡‡˜‡—‡…ƒ””‹‡†–Š‡ƒ––‡”„‡ˆ‘”‡–Š‡’‡š‘—”–Ǥ
 ‘…—””‹‰™‹–Š–Š‡‘”†‡”•‘ˆ–Š‡Ž‘™‡”ƒ—–Š‘”‹–‹‡•ǡ–Š‡„‡…Š…‘’”‹•‹‰ —•–‹…‡Ǥƒ‰ƒ”™ƒŽƒ† —•–‹…‡
Œƒ›ƒ‘Šƒ”ƒ’”‡Š‡Ž†–Šƒ––Š‡–”ƒ•ƒ…–‹‘™ƒ•”‹‰Š–Ž›–”‡ƒ–‡†ƒ••Ž—•ƒŽ‡—†‡”•‡…–‹‘ͶͺǤDz‡…–‹‘
ͷͲȋʹȌƒ’’Ž‹‡•–‘ƒ…ƒ•‡™Š‡”‡ƒ›„Ž‘…‘ˆƒ••‡–•ƒ”‡–”ƒ•ˆ‡””‡†„›–Š‡ƒ••‡••‡‡„—–™Š‡”‡–Š‡‡–‹”‡
”—‹‰„—•‹‡••™‹–Šƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‹••‘Ž†„›–Š‡ƒ••‡••‡‡‹‘‡‰‘ǡ•—…Š•ƒŽ‡ǡ‹‘—”˜‹‡™ǡ…ƒ‘–
„‡…‘•‹†‡”‡†ƒ•Dz•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•dzǤ‘–Š‡”™‘”†•ǡ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͷͲȋʹȌ‘ˆ–Š‡…‘‡
ƒš…–™‘—Ž†ƒ’’Ž›–‘ƒ…ƒ•‡™Š‡”‡–Š‡ƒ••‡••‡‡–”ƒ•ˆ‡”•‘‡‘”‘”‡„Ž‘…‘ˆƒ••‡–•ǡ™Š‹…ŠŠ‡™ƒ•
—•‹‰‹”—‹‰‘ˆŠ‹•„—•‹‡••Ǥ—…Š‹•‘––Š‡…ƒ•‡Š‡”‡„‡…ƒ—•‡‹–Š‹•…ƒ•‡ǡ–Š‡ƒ••‡••‡‡•‘Ž†–Š‡‡–‹”‡
„—•‹‡••ƒ•ƒ”—‹‰…‘…‡”Ǥdz
7. Can exemption under section 54F be denied solely on the ground that the new residential house
is purchased by the assessee exclusively in the name of his wife?
CIT v. Kamal Wahal (2013) [Delhi High Court]
 ‹‰Š‘—”–ǯ•‡…‹•‹‘ǣŠ‡‡ŽŠ‹‹‰Š‘—”–ǡŠƒ˜‹‰”‡‰ƒ”†–‘–Š‡”—Ž‡‘ˆ’—”’‘•‹˜‡…‘•–”—…–‹‘ƒ†–Š‡
‘„Œ‡…–‘ˆ‡ƒ…–‡–‘ˆ•‡…–‹‘ͷͶ ǡŠ‡Ž†–Šƒ––Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†–‘…Žƒ‹‡š‡’–‹‘—†‡”•‡…–‹‘ͷͶ 
‹”‡•’‡…–‘ˆ—–‹Ž‹œƒ–‹‘‘ˆ•ƒŽ‡’”‘…‡‡†•‘ˆ…ƒ’‹–ƒŽƒ••‡–ˆ‘”‹˜‡•–‡–‹”‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”–›‹
–Š‡ƒ‡‘ˆŠ‹•™‹ˆ‡Ǥ
8. Can advance given for purchase of land, building, plant and machinery tantamount to utilization
of capital gain for purchase and acquisition of new machinery or plant and building or land, for
claim of exemption under section 54G?
Fibre Boards (P) Ltd v. CIT (2015) [Supreme Court]
 —’”‡‡‘—”–ǯ•‡…‹•‹‘ǣ‘ƒ˜ƒ‹Ž‡š‡’–‹‘—†‡”•‡…–‹‘ͷͶ
‹”‡•’‡…–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰ˆ”‘
–”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–•‹–Š‡…ƒ•‡‘ˆ•Š‹ˆ–‹‰‘ˆ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰ˆ”‘—”„ƒƒ”‡ƒ–‘‘Ǧ—”„ƒ
ƒ”‡ƒǡ–Š‡”‡“—‹”‡‡–‹••ƒ–‹•ϐ‹‡†‹ˆ–Š‡…ƒ’‹–ƒŽ‰ƒ‹‹•‰‹˜‡ƒ•ƒ†˜ƒ…‡ˆ‘”ƒ…“—‹•‹–‹‘‘ˆ…ƒ’‹–ƒŽƒ••‡–•
•—…Šƒ•Žƒ†ǡ„—‹Ž†‹‰ƒ†Ȁ‘”’Žƒ–ƒ†ƒ…Š‹‡”›Ǥ
Lesson 4 Ȉ Part IV - Income from Capital Gains 287

LESSON ROUND-UP

Ȉ ‡…–‹‘•Ͷͷ–‘ͷͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ†‡ƒŽ™‹–Š…ƒ’‹–ƒŽ‰ƒ‹•Ǥ‡…–‹‘Ͷͷ‘ˆ–Š‡…–ǡ’”‘˜‹†‡•–Šƒ–
ƒ›’”‘ϐ‹–•‘”‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‡ˆˆ‡…–‡†‹–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽǡ•ƒ˜‡ƒ•
‘–Š‡”™‹•‡’”‘˜‹†‡†‹‡…–‹‘•ͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶ ǡͷͶ
ǡͷͶ
ƒ†ͷͶ„‡…Šƒ”‰‡ƒ„Ž‡
–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ
ƒ‹•dzƒ†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
‹™Š‹…Š–Š‡–”ƒ•ˆ‡”–‘‘’Žƒ…‡Ǥ
Ȉ ‡…–‹‘ʹȋͳͶȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–†‡ϐ‹‡•–Š‡–‡”Dz…ƒ’‹–ƒŽƒ••‡–dz–‘‡ƒ•”‘’‡”–›‘ˆƒ›‹†Š‡Ž†
„›ƒƒ••‡••‡‡™Š‡–Š‡”‘”‘–…‘‡…–‡†™‹–ŠŠ‹•„—•‹‡••‘”’”‘ˆ‡••‹‘„—–†‘‡•‘–‹…Ž—†‡ƒ›•–‘…Ǧ
‹Ǧ–”ƒ†‡ǡ’‡”•‘ƒŽ‡ˆˆ‡…–•ǡƒ‰”‹…—Ž–—”ƒŽŽƒ†‹†‹ƒǡ͸Ψ
‘Ž†‘†•ǡ’‡…‹ƒŽ‡ƒ”‡”‘†•ǡ
‘Ž†‡’‘•‹–
‘†•Ǥ
Ȉ Š‡‡••‡–‹ƒŽ”‡“—‹”‡‡–ˆ‘”–Š‡‹…‹†‡…‡‘ˆ–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•‹•–Š‡–”ƒ•ˆ‡”‘ˆƒǮ…ƒ’‹–ƒŽƒ••‡–ǯǤǦ›
…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰ƒ•ƒ”‡•—Ž–‘ˆ–”ƒ•ˆ‡”‘ˆƒ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–‹•‘™ƒ••Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹Ǥ
DzŠ‘”––‡”dz…ƒ’‹–ƒŽƒ••‡–‡ƒ•ƒ…ƒ’‹–ƒŽƒ••‡–Š‡Ž†„›ƒƒ••‡••‡‡ˆ‘”‘–‘”‡–Šƒ–Š‹”–›Ǧ•‹š‘–Š•
‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ‹–•–”ƒ•ˆ‡”Ǥ–Š‡…ƒ•‡‘ˆ…ƒ’‹–ƒŽƒ••‡–•ȋ„‡‹‰‡“—‹–›‘”’”‡ˆ‡”‡…‡
•Šƒ”‡‹ƒ…‘’ƒ›ȌŠ‡Ž†„›ƒƒ••‡••‡‡ˆ‘”‘–‘”‡–Šƒͳʹ‘–Š•‹‡†‹ƒ–‡Ž›’”‹‘”–‘‹–•–”ƒ•ˆ‡”Ǥ
Ȉ ••‡–•‘–Š‡”–Šƒ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•ƒ”‡‘™ƒ•ǮŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–•ǯƒ†–Š‡‰ƒ‹•ƒ”‹•‹‰
–Š‡”‡ˆ”‘ƒ”‡‘™ƒ•ǮŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ǯǤ‡…–‹‘Ͷͺ‘ˆ–Š‡…–’”‘˜‹†‡•–Šƒ––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡
—†‡” –Š‡ Š‡ƒ† Ǯ…ƒ’‹–ƒŽ ‰ƒ‹•ǯ •ŠƒŽŽ „‡ …‘’—–‡† „› †‡†—…–‹‰ ˆ”‘ –Š‡ ˆ—ŽŽ ˜ƒŽ—‡ ‘ˆ …‘•‹†‡”ƒ–‹‘
”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡ƒ‘—–‘ˆ‡š’‡†‹–—”‡‹…—””‡†
™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›‹…‘‡…–‹‘™‹–Š•—…Š–”ƒ•ˆ‡”ƒ†–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–
ƒ†–Š‡…‘•–‘ˆƒ›‹’”‘˜‡‡––Š‡”‡–‘Ǥ
Ȉ Ǯ‘•–‘ˆƒ…“—‹•‹–‹‘ǯ‘ˆ‰‘‘†™‹ŽŽ‘ˆƒ„—•‹‡••‘”ƒ”‹‰Š––‘ƒ—ˆƒ…–—”‡ǡ’”‘†—…‡‘”’”‘…‡••ƒ›ƒ”–‹…Ž‡‘”
–Š‹‰ǡ–‡ƒ…›”‹‰Š–•ǡ•–ƒ‰‡…ƒ””‹ƒ‰‡’‡”‹–•‘”Ž‘‘Š‘—”•‹•‹–Š‡…ƒ•‡‘ˆƒ…“—‹•‹–‹‘‘ˆ•—…Šƒ••‡–„›
–Š‡ƒ••‡••‡‡„›’—”…Šƒ•‡ˆ”‘ƒ’”‡˜‹‘—•‘™‡”ǡ…‘•–‘ˆƒ…“—‹•‹–‹‘‡ƒ•–Š‡ƒ‘—–‘ˆ–Š‡’—”…Šƒ•‡
’”‹…‡Ǣƒ†‹ƒ›‘–Š‡”…ƒ•‡…‘•–‘ˆƒ…“—‹•‹–‹‘•ŠƒŽŽ„‡‹ŽǤ
Ȉ ‘•–‘ˆ‹’”‘˜‡‡–‡ƒ•ƒŽŽ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‹ƒ‹‰ƒ›ƒ††‹–‹‘•‘”ƒŽ–‡”ƒ–‹‘•„›–Š‡ƒ••‡••‡‡
ƒˆ–‡”‹–„‡…ƒ‡Š‹•’”‘’‡”–›ƒ†™Š‡”‡–Š‡…ƒ’‹–ƒŽƒ••‡–„‡…ƒ‡–Š‡’”‘’‡”–›‘ˆ–Š‡ƒ••‡••‡‡„›ƒ›‘ˆ
–Š‡‘†‡••’‡…‹ϐ‹‡†‹‡…–‹‘ͶͻȋͳȌ„›–Š‡’”‡˜‹‘—•‘™‡”ƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Ȉ †‡”‡…–‹‘•ͷͶǡͷͶǡͷͶǡͷͶǡͷͶǡͷͶ ǡͷͶ
ƒ†ͷͶ‘ˆ–Š‡…–ǡ…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡
–”ƒ•ˆ‡”‘ˆ…‡”–ƒ‹…ƒ’‹–ƒŽƒ••‡–•ƒ”‡‡š‡’–ˆ”‘–ƒš—†‡”…‡”–ƒ‹…‹”…—•–ƒ…‡•Ǥ
Ȉ Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›‹ˆ‹–†‡‡•‡…‡••ƒ”›–‘†‘•‘‹–Š‡‰‡‡”ƒŽ‹–‡”‡•–‘ˆ–Š‡’—„Ž‹…ǡ‡š‡’–
‰‘‘†•‰‡‡”ƒŽŽ›‘”•’‡…‹ϐ‹…ƒŽŽ›Ǥ

TEST YOURSELF

(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
”ƒ…–‹…ƒŽ—‡•–‹‘•ȋ•Ȍ
ͳǤ ƒ’‹–ƒŽƒ••‡–‡š…Ž—†‡•ƒŽŽ‡š…‡’–Ǧ
ȋƒȌ –‘…Ǧ‹Ǧ–”ƒ†‡ ȋ„Ȍ ‡”•‘ƒŽ‡ˆˆ‡…–•
ȋ…Ȍ  ‡™‡ŽŽ‡”›  ȋ†Ȍ ‰”‹…—Ž–—”ƒŽŽƒ†‹†‹ƒǤ

 •™‡”ǣȋ…Ȍ ‡™‡ŽŽ‡”›
288 Lesson 4 Ȉ EP-TL

ʹǤ –‡”•‘ˆ•‡…–‹‘ʹȋͶʹȌǡŽ‹•–‡†•‡…—”‹–‹‡•ƒ”‡–”‡ƒ–‡†ƒ•Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽƒ••‡–ǡ‹ˆ–Š‡›ƒ”‡Š‡Ž†ˆ‘”ƒ
’‡”‹‘†‘ˆ‘”‡–ŠƒȄ
ȋƒȌ ͳʹ‘–Š• ȋ„Ȍ ͵͸‘–Š•
ȋ…Ȍ ʹͶ‘–Š• ȋ†Ȍ Ͷͺ‘–Š•Ǥ
•™‡”ǣȋƒȌͳʹ‘–Š•

͵Ǥ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ”‡“—‹•‹–‡ˆ‘”…Šƒ”‰‹‰‹…‘‡Ǧ–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•Ȅ
ȋƒȌ Š‡–”ƒ•ˆ‡”—•–Šƒ˜‡„‡‡‡ˆˆ‡…–‡†‹–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”
ȋ„Ȍ Š‡”‡—•–„‡ƒ‰ƒ‹ƒ”‹•‹‰‘–”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–
ȋ…Ȍ ƒ’‹–ƒŽ‰ƒ‹••Š‘—Ž†‘–„‡‡š‡’–—†‡”•‡…–‹‘ͷͶ
ȋ†Ȍ ƒ’‹–ƒŽ‰ƒ‹••Š‘—Ž†‘–„‡‡š‡’–—†‡”•‡…–‹‘ͷͶǤ
•™‡”ǣȋƒȌŠ‡–”ƒ•ˆ‡”—•–Šƒ˜‡„‡‡‡ˆˆ‡…–‡†‹–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”

Ͷ ƒŒƒ–’—”…Šƒ•‡†ƒ…ƒ”ˆ‘”Š‹•’‡”•‘ƒŽ—•‡ˆ‘”•ǤͷǡͲͲǡͲͲͲ‹’”‹ŽǡʹͲͳͺƒ†•‘Ž†–Š‡•ƒ‡ˆ‘”•ǤͷǡͷͲǡͲͲͲ
‹ —Ž›ǡʹͲʹͳǤŠ‡–ƒšƒ„Ž‡…ƒ’‹–ƒŽ‰ƒ‹•‹•Ȅ
ȋƒȌ ‹Ž  ȋ„Ȍ •ǤͷǡͷͲǡͲͲͲ
ȋ…Ȍ •ǤͷͲǡͲͲͲ ȋ†Ȍ •ǤͶǡͲͲǡͲͲͲ
•™‡”ǣȋƒȌ‹Žȏƒ”ˆ‘”’‡”•‘ƒŽ—•‡‹•‘–…ƒ’‹–ƒŽƒ••‡–ǤŠ‡”‡ˆ‘”‡ǡ‘…ƒ’‹–ƒŽ‰ƒ‹•ŠƒŽŽƒ”‹•‡ǤȐ

ͷǤ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ…ƒ’‹–ƒŽƒ••‡–ˆ‘””Ǥƒ‘™Š‘‹•‡’Ž‘›‡†‹ƒ’—„Ž‹…•‡…–‘”„ƒǫ
ȋƒȌ ”„ƒŽƒ†
ȋ„Ȍ ‰”‹…—Ž–—”ƒŽŽƒ†™‹–Š‹ʹ•ˆ”‘Ž‘…ƒŽŽ‹‹–•‘ˆ—‹…‹’ƒŽ‹–›
ȋ…Ȍ ‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡‹••—‡†—†‡”
‘Ž†‘‡–‹•ƒ–‹‘…Š‡‡ǡʹͲͳͷ
ȋ†Ȍ ‡™‡ŽŽ‡”›
•™‡”ǣȋ…Ȍ‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡‹••—‡†—†‡”
‘Ž†‘‡–‹•ƒ–‹‘…Š‡‡ǡʹͲͳͷ

͸Ǥ ƒ†‘”„—‹Ž†‹‰ǡ‘”„‘–Šǡ‹ˆ–”ƒ•ˆ‡””‡†‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲʹͳ•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒŽ‘‰–‡”…ƒ’‹–ƒŽ
ƒ••‡–ǡ‹ˆ‹–‹•„‡‹‰Š‡Ž†‹‡†‹ƒ–‡Ž›’”‹‘”–‘–Š‡†ƒ–‡‘ˆ‹–•–”ƒ•ˆ‡”ˆ‘”‘”‡–Šƒǣ
ȋƒȌ ͵͸‘–Š• ȋ„Ȍ ͳʹ‘–Š•
ȋ…Ȍ ʹͶ‘–Š• ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ

Ȉ Direct Taxes Ready Reckoner with Tax Planning

 —–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 —„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”
Lesson 4 Ȉ Part IV - Income from Capital Gains 289

OTHER REFERENCES

Ȉ Income Tax Act, 1961: https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Ȉ Income Tax Rules, 1962: https://www.incometaxindia.gov.in/Pages/rules/income-tax-rules-1962. aspx
Ȉ Circulars: https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
290 Lesson 4 Ȉ EP-TL
 Part V – Income from Other
Lesson 4 Sources
Key Concepts One Learning Objectives Regulatory
Should Know Framework
To understand
Ȉ ƒ•—ƒŽ…‘‡
Ȉ Š‹…Šƒ”‡–Š‡‹…‘‡ Income Tax
Sections
Ȉ
‹ˆ–• Act, 1961
chargeable under the head
Ȉ ‡Žƒ–‹˜‡• income from other Section 56 Basis of Charge of
sources? Income from other
Ȉ ‘˜ƒ„Ž‡”‘’‡”–› Sources
Ȉ Šƒ–ƒ”‡ƒ†‹••‹„Ž‡
Ȉ ‘˜ƒ„Ž‡”‘’‡”–› deductions? Section Casual Income
56(2)(IB)
Ȉ ‡‡‡†…‘‡ Ȉ Š‹…Šƒ”‡–Š‡ Section 52 Income from Family
inadmissible deductions? (iia) Pension
Ȉ ƒšƒ„‹Ž‹–›‘ˆ
‹ˆ–• Section 57 Deduction
Ȉ ƒšƒ„‹Ž‹–›‘ˆƒ•—ƒŽ allowable in
Income computing Income
from other Sources
Ȉ ‡‡‡†…‘‡•—†‡” Section 58 Inadmissible
the head other Sources Deduction
Section 59 Deemed Income

Lesson Outline
Ȉ Income chargeable under Ȉ ‘—–•‘–‡†—…–‹„Ž‡
the head ‘Income from other [Section 58]
Sources’
Ȉ ‡‡‡†…‘‡ȏ‡…–‹‘ͷͻȐ
Ȉ ’ƒ…–‘ˆ‡…–‹‘ͳͳͷ
under the head "other Ȉ ‘’—–ƒ–‹‘‘ˆ…‘‡
Sources" under the head "Other
Sources"
Ȉ ƒ•—ƒŽ…‘‡
Ȉ ƒ•‡ƒ™
Ȉ …‘‡ˆ”‘ˆƒ‹Ž›’‡•‹‘
Ȉ Ǧ
Ȉ ƒšƒ–‹‘‘ˆ‹˜‹†‡†•
Ȉ 
Ȉ ‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡‹
computing income from Ȉ   
other Sources 

Ȉ  

The incomes which are neither covered under the head salary, house
property, business income or capital gains shall be taxable under the
head Income from other sources. This head of income is a residual
head because it covers all other incomes which are uncovered and
which are not exempt from tax.
 292 Lesson 4 Ȉ EP-TL

BASIS OF CHARGE OF INCOME FROM OTHER SOURCES [SECTION 56]

Income charg‡ƒ„Ž‡ —†‡” …‘‡Ǧ–ƒš …–ǡ ™Š‹…Š †‘‡• ‘– •’‡…‹ˆ‹…ƒŽŽ› ˆƒŽŽ ˆ‘” ƒ••‡••‡– —†‡” ƒ› ‘ˆ –Š‡
heads discussed earlier, must be charged to tax as “income from other sources”. This head is thus a residuary
head of income under which income can be computed only after deciding whether the particular item of income
is otherwise assessable under any of the first four heads. Section 56(2) covers certain specific incomes which
ƒ”‡ …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† Dz…‘‡ ”‘ –Š‡”‘—”…‡•dzǤ‡…–‹‘ͷ͸ȋͳȌ…‘˜‡”•ƒŽŽ –Š‡ ”‡•‹†—ƒŽ ‹…‘‡•
™Š‹…Šƒ”‡‘–…‘˜‡”‡†„›ˆ‹”•– ‘—”‡ƒ†•‘ˆ…‘‡ƒ†‡…–‹‘ͷ͸ȋʹȌǤ
‘–Š‡”™‘”†•ƒ›‹…‘‡‹•–ƒšƒ„Ž‡—†‡”–Š‹•Š‡ƒ†‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
(a) There is an Income.
ȋ„Ȍ —…Š‹…‘‡‹•‘–‡š‡’–—†‡”ƒ›’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡ƒš…–Ǥ
(c) Such income is not taxable under First four heads of Income.

Š‡ ˆ‘ŽŽ‘™‹‰ •’‡…‹ϐ‹… ‹…‘‡• ƒ”‡ …Šƒ”‰‡ƒ„Ž‡ –‘ …‘‡ ƒš —†‡” –Š‡ Š‡ƒ† Dz…‘‡ ˆ”‘ ‘–Š‡” •‘—”…‡•dz
—†‡”‡…–‹‘ͷ͸ȋʹȌǣǦ
(a) Dividends [Section 56(2)(i)]: Dividend income.
(b) Keyman Insurance policy: ‘—– ”‡…‡‹˜‡† —†‡” ƒ ‡›ƒ ‹•—”ƒ…‡ ‘Ž‹…›ǡ ‹…Ž—†‹‰ „‘—• ‘ •—…Š
Policy, if it is not taxable under any other head of income shall be chargeable under Income from other
sources.
(c) Winnings from lotteries [Section 56(2)(ib)]: › ™‹‹‰• ˆ”‘ Ž‘––‡”‹‡•ǡ …”‘••™‘”† ’—œœŽ‡•ǡ ”ƒ…‡•
including horse races, card games and other games of any sort or from gambling or betting of any form or
nature shall be chargeable to tax under Income from other sources.
The entire income of winnings, without any expenditure or allowance or deductions under Sections 80C to
ͺͲǡ™‹ŽŽ„‡–ƒšƒ„Ž‡Ǥ‘™‡˜‡”ǡ‡š’‡•‡•”‡Žƒ–‹‰–‘–Š‡ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•ƒ”‡
allowable.
 —”–Š‡”ǡ•—…Š‹…‘‡‹•–ƒšƒ„Ž‡ƒ–ƒ•’‡…‹ƒŽ”ƒ–‡‘ˆ‹…‘‡Ǧ–ƒš‹Ǥ‡Ǥǡ͵ͲΨΪ•—”…Šƒ”‰‡Ϊ…‡••̷ͶΨȏ‡…–‹‘ͳͳͷȐ
(d) Contribution to Provident fund: …‘‡‘ˆ–Š‡ƒ–—”‡”‡ˆ‡””‡†–‘‹‡…–‹‘ʹȋʹͶȌȋšȌȋ”‡Žƒ–‹‰–‘…‡”–ƒ‹
contributions to any provident fund or superannuation fund or any fund set up under the provisions of the
…–‘”ƒ›‘–Š‡”ˆ—†ˆ‘”–Š‡™‡Žˆƒ”‡‘ˆ•—…Š‡’Ž‘›‡‡•”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡ˆ”‘Š‹•‡’Ž‘›‡‡•‹
Š‹•…ƒ’ƒ…‹–›ƒ•ƒ‡’Ž‘›‡”Ȍ™‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dz‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dz‹ˆ
•—…Š‹…‘‡‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dz’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ—–
if the employer deposits such amount on or before due date of deposit applicable for such contribution, he
will be allowed a deduction on account of the same. [Section 56(2)(ic)].
(e) Income by way of interest on securities: if the income by way of interest on securities is not chargeable to
‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†ǡDz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǡ–Š‡•—…Š‹…‘‡•ŠƒŽŽ„‡–ƒšƒ„Ž‡
under Income from other sources. It is chargeable on “receipt” basis if books of accounts are maintained on
Dzƒ•Šƒ•‹•dzǡŠ‘™‡˜‡”‹ˆ„‘‘•ƒ”‡ƒ‹–ƒ‹‡†‘Dz‡”…ƒ–‹Ž‡›•–‡dz–Š‡‹–‡”‡•–‹•–ƒšƒ„Ž‡‘Dzƒ……”—ƒŽdz
„ƒ•‹•Ǥ–‹•™‘”–Š™Š‹Ž‡–‘‡–‹‘Š‡”‡ǡ–Šƒ–ƒ›‹–‡”‡•–‹…‘‡•ƒ”‡‡š‡’–—Ȁ•ͳͲȋͳͷȌǤ
(f) Income from hiring of machinery, etc. [Section 56(2)(ii)]: Income from machinery, plant or furniture
„‡Ž‘‰‹‰–‘–Š‡ƒ••‡••‡‡ƒ†Ž‡–‘Š‹”‡Ǣ‹ˆ–Š‡‹…‘‡‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dz’”‘ϐ‹–
and gains of business or profession” shall be taxable under Income from other sources.
(g) Lesson 4
Hiring out of building with machinery etc. [Section 56(2)(iii)]ǣŠ‡”‡ƒƒ••‡••‡‡Ž‡–•‘Š‹”‡ƒ…Š‹‡”›ǡ
plant or furniture belonging to him and also building and the letting of the building is inseparable from

Part V – Income from Other Sources

the letting of the said machinery, plant or furniture, the income from such letting, if it is not chargeable to
‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz•ŠƒŽŽ„‡–ƒšƒ„Ž‡—†‡”…‘‡ˆ”‘
other sources.
(h) Share premiums in excess of the fair market value to be treated as income [Section 56(2) (viib)]: Š‡”‡ƒ
BASIScompany,
OF CHARGE OFaINCOME
not being company inFROM
which OTHER
the publicSOURCES [SECTION
are substantially 56] receives, in any previous
interested,
 Lesson 4 Ȉ Part V – Income from Other Sources 293

year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such
shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares
shall be taxable under Income from other sources.
 ‘™‡˜‡”ǡ–Š‹•…Žƒ—•‡•ŠƒŽŽ‘–ƒ’’Ž›™Š‡”‡–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”‹••—‡‘ˆ•Šƒ”‡•‹•”‡…‡‹˜‡†ǣ
(i) by a venture capital undertaking from a venture capital company or a venture capital fund [or a
•’‡…‹ϐ‹‡† ˆ—† Šƒ˜‹‰ ƒ–‡‰‘”›  ‘” ƒ–‡‰‘”›  Ž–‡”ƒ–‹˜‡ ˜‡•–‡– —† ‡”–‹ϐ‹…ƒ–‡
ȋ™Ǥ‡ǤˆǤ••‡••‡–‡ƒ”ʹͲǦʹͳȌȐ‘”
ȋ‹‹Ȍ  „›ƒ…‘’ƒ›ˆ”‘ƒ…Žƒ••‘”…Žƒ••‡•‘ˆ’‡”•‘•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•
„‡ŠƒŽˆȋˆ‘”–Š‹•’—”’‘•‡
‘˜–ǤŠƒ•‘–‹ϐ‹‡†–Šƒ–’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ƒ”‡‘–ƒ’’Ž‹…ƒ„Ž‡‹…ƒ•‡
consideration is received by a company for issue of shares of a “startup” company)
 ”‘˜‹†‡† ™Š‡”‡ –Š‡ …Žƒ•• ‘ˆ …‘’ƒ‹‡• ‘–‹ϐ‹‡† „› ‡–”ƒŽ
‘˜‡”‡– †‘‡• ‘– …‘’Ž› ‘ ƒ……‘—– ‘ˆ
ˆ—Žϐ‹Ž‡–‘ˆ…‘†‹–‹‘••’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘‹••—‡†—†‡”…Žƒ—•‡ȋ‹‹Ȍǡ–Š‡ǡƒ›…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†
for issue of share that exceeds the face value of such share shall be deemed to be the income of that company
…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šˆƒ‹Ž—”‡Šƒ•–ƒ‡’Žƒ…‡Ǥ
Explanation Ǧ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Žƒ—•‡ǡ
(a) the fair market value of the shares shall be the value
(i) as may be determined in accordance with such method as may be prescribed (value is to be
†‡–‡”‹‡†ƒ•’‡”‡–Š‘†‰‹˜‡‹”—Ž‡ͳͳȌǢ‘”
ȋ‹‹Ȍ  ƒ•ƒ›„‡•—„•–ƒ–‹ƒ–‡†„›–Š‡…‘’ƒ›–‘–Š‡•ƒ–‹•ˆƒ…–‹‘‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”ǡ„ƒ•‡†‘–Š‡
value, on the date of issue of shares, of its assets, including intangible assets being goodwill,
‘™ǦŠ‘™ǡ ’ƒ–‡–•ǡ …‘’›”‹‰Š–•ǡ –”ƒ†‡ƒ”•ǡ Ž‹…‡…‡•ǡ ˆ”ƒ…Š‹•‡• ‘” ƒ› ‘–Š‡” „—•‹‡••‘”
commercial rights of similar nature, whichever is higher;
(i) Income by way of interest received on compensation or on enhanced compensation referred to in clause
ȋ„Ȍ‘ˆ•‡…–‹‘ͳͶͷ•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”…‘‡ˆ”‘‘–Š‡”•‘—”…‡•Ǥȏ‡…–‹‘ͷ͸ȋʹȌ ȋ˜‹‹‹ȌȐǤ
(j)  †˜ƒ…‡ ‘‡› ”‡…‡‹˜‡†Ǧ ƒ› •— ‘ˆ ‘‡›ǡ ”‡…‡‹˜‡† ƒ• ƒ ƒ†˜ƒ…‡ ‘” ‘–Š‡”™‹•‡ ‹ –Š‡ …‘—”•‡ ‘ˆ
‡‰‘–‹ƒ–‹‘•ˆ‘”–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‹•…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”
sources”, if such sum is forfeited and the negotiations do not result in transfer of such capital asset.
[Section 56(2)(ix)].
(k)  ‡…‡‹’– ‘ˆ ‘‡› ‘” ”‘’‡”–› ™‹–Š‘—– …‘•‹†‡”ƒ–‹‘ ‘” ™‹–Š‘—– ƒ†‡“—ƒ–‡ …‘•‹†‡”ƒ–‹‘ „› ƒ› ’‡”•‘
[Section 56(2)(x)]
The following shall be taxable under the head ‘Income from other sources’ :
Š‡”‡ƒ›’‡”•‘”‡…‡‹˜‡•ǡ‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡˆ”‘ƒ›’‡”•‘‘”’‡”•‘•‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ ’”‹ŽǡʹͲͳ͹ǡȄ
ȋƒȌ ›•—‘ˆ‘‡›ǡ™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ǡ–Š‡ƒ‰‰”‡‰ƒ–‡˜ƒŽ—‡‘ˆ™Š‹…Š‡š…‡‡†•ͷͲǡͲͲͲǡ–Š‡ ™Š‘Ž‡‘ˆ–Š‡
aggregate value of such sum.
ȋ„Ȍ ›‹‘˜ƒ„Ž‡’”‘’‡”–›ǡȄ
‹Ǥ ™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ǡ –Š‡ •–ƒ’ †—–› ˜ƒŽ—‡ ‘ˆ ™Š‹…Š‡š…‡‡†•  ͷͲǡͲͲͲǡ –Š‡ •–ƒ’ †—–› ˜ƒŽ—‡‘ˆ
such property is chargeable to tax;
ii. for a consideration, the stamp duty value of such property as exceeds such consideration, if the amount
‘ˆ•—…Š‡š…‡••‹•‘”‡–Šƒ–Š‡Š‹‰Š‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–•ǡƒ‡Ž›ǣȄ
Ȉ –Š‡ƒ‘—–‘ˆͷͲǡͲͲͲǢ‘”
Ȉ –Š‡ƒ‘—–‡“—ƒŽ–‘ͳͲΨ’‡”…‡–‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘ȏ…”‡ƒ•‡†ˆ”‘ͷΨ–‘ͳͲΨ„› ‹ƒ…‡
…–ǡʹͲʹͲȐǢ
Ȉ –Š‡–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡•–ƒ’†—–›˜ƒŽ—‡‘ˆ•—…Š’”‘’‡”–›ƒ†…‘•‹†‡”ƒ–‹‘‹•…Šƒ”‰‡ƒ„Ž‡
to tax.
 294 Lesson 4 Ȉ EP-TL

Provided tha– ™Š‡”‡ –Š‡ †ƒ–‡ ‘ˆ ƒ‰”‡‡‡– ϐ‹š‹‰ –Š‡ ƒ‘—– ‘ˆ …‘•‹†‡”ƒ–‹‘ ˆ‘” –Š‡ –”ƒ•ˆ‡” ‘ˆ
immovable property and the date of registration are not the same, the stamp duty value on the date
‘ˆƒ‰”‡‡‡–ƒ›„‡–ƒ‡ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ…Žƒ—•‡Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‡ϐ‹”•–’”‘˜‹•‘•ŠƒŽŽƒ’’Ž›‘Ž›‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ‘—–‘ˆ
…‘•‹†‡”ƒ–‹‘”‡ˆ‡””‡†–‘–Š‡”‡‹ǡ‘”ƒ’ƒ”––Š‡”‡‘ˆǡŠƒ•„‡‡’ƒ‹†„›™ƒ›‘ˆƒƒ……‘—–’ƒ›‡‡ …Š‡“—‡
or an account payee bank draft or by use of electronic clearing system through a bank account, or
–Š”‘—‰Š •—…Š ‘–Š‡” ‡Ž‡…–”‘‹… ‘†‡ ƒ• ƒ› „‡ ’”‡•…”‹„‡† ȏ•‡”–‡† ˜‹†‡ ‹ƒ…‡…–ǡ 2020] on or
before the date of agreement for transfer of such immovable property.
Provided also that where the stamp duty value of immovable property is disputed by the assessee on
‰”‘—†• ‡–‹‘‡† ‹ •—„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ •‡…–‹‘ ͷͲǡ –Š‡••‡••‹‰ ˆϐ‹…‡” ƒ› ”‡ˆ‡” –Š‡˜ƒŽ—ƒ–‹‘
‘ˆ •—…Š ’”‘’‡”–› –‘ ƒ ƒŽ—ƒ–‹‘ ˆϐ‹…‡”ǡ ƒ† –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ ͷͲ ƒ† •—„Ǧ •‡…–‹‘ȋͳͷȌ‘ˆ
•‡…–‹‘ͳͷͷ•ŠƒŽŽǡƒ•ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›‹”‡Žƒ–‹‘–‘–Š‡•–ƒ’†—–›˜ƒŽ—‡‘ˆ such property for the
’—”’‘•‡‘ˆ–Š‹••—„Ǧ…Žƒ—•‡ƒ•–Š‡›ƒ’’Ž›ˆ‘”˜ƒŽ—ƒ–‹‘‘ˆ…ƒ’‹–ƒŽƒ••‡–—†‡” –Š‘•‡•‡…–‹‘•Ǥ
 ”‘˜‹†‡†ƒŽ•‘–Šƒ–‹…ƒ•‡‘ˆ’”‘’‡”–›„‡‹‰”‡ˆ‡””‡†–‘‹–Š‡•‡…‘†’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋ1) of
•‡…–‹‘ Ͷ͵ǡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ •—„Ǧ‹–‡ ȋ‹‹Ȍ ‘ˆ ‹–‡ ȋȌ •ŠƒŽŽ Šƒ˜‡ ‡ˆˆ‡…– ƒ• ‹ˆ ˆ‘” –Š‡ ™‘”†• Dz–‡
percent.”, the words “twenty percent.” had been substituted [Amendment by Finance Act, 2021]
(c) any property, other than immovable property, –
ȋȌ ™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ǡ–Š‡ƒ‰‰”‡‰ƒ–‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ™Š‹…Š‡š…‡‡†•ͷͲǡͲͲͲǡ–Š‡ –Š‡™Š‘Ž‡
of the aggregate fair market value of such property.
(B) for a consideration which is less than the aggregate fair market value of the property by an amount
‡š…‡‡†‹‰ͷͲǡͲͲͲǡ–Š‡ƒ‰‰”‡‰ƒ–‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š’”‘’‡”–›ƒ•‡š…‡‡†• •—…Š…‘•‹†‡”ƒ–‹‘Ǥ
”‘˜‹†‡†–Šƒ––Š‹•…Žƒ—•‡•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ›•—‘ˆ‘‡›‘”ƒ›’”‘’‡”–›”‡…‡‹˜‡†Ȅ
(i) from any relative; or
(ii) on the occasion of the marriage of the individual; or
(iii) under a will or by way of inheritance; or
(iv) In contemplation of death of the payer or donor, as the case may be; or
ȋ˜Ȍ  ˆ”‘ƒ›Ž‘…ƒŽƒ—–Š‘”‹–›ƒ•†‡ϐ‹‡†‹•‡…–‹‘ͳͲȋʹȌǢ‘”
(vi) from any fund or foundation or university or other educational institution or hospital or other
‡†‹…ƒŽ‹•–‹–—–‹‘‘”ƒ›–”—•–‘”‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͲȋʹ͵ȌǢ‘”
ȋ˜‹‹Ȍ ˆ”‘ ‘” „› ƒ› –”—•– ‘” ‹•–‹–—–‹‘ ”‡‰‹•–‡”‡† —†‡” •‡…–‹‘ ͳʹǢ ‘” ‡…–‹‘ ͳʹǢ ȏ•‡”–‡† ˜‹†‡
‹ƒ…‡…–ǡʹͲʹͲȐǢ‘”
(viii) by any fund or trust or institution or any university or other educational institution or any hospital or
‘–Š‡”‡†‹…ƒŽ‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͲȋʹ͵ȌǢ‘”
ȋ‹šȌ „›™ƒ›‘ˆ–”ƒ•ƒ…–‹‘‘–”‡‰ƒ”†‡†ƒ•–”ƒ•ˆ‡”—†‡”…‡”–ƒ‹…Žƒ—•‡•‘ˆ•‡…–‹‘Ͷ͹Ǣ‘”
ȋšȌ ˆ”‘ƒ‹†‹˜‹†—ƒŽ„›ƒ–”—•–…”‡ƒ–‡†‘”‡•–ƒ„Ž‹•Š‡†•‘Ž‡Ž›ˆ‘”–Š‡„‡‡ϐ‹–‘ˆ”‡Žƒ–‹˜‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǢ
ȋš‹Ȍ ”‘ •—…Š…Žƒ••‘ˆ’‡”•‘•ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥȋ™Ǥ‡ǤˆǤʹͲǦʹͳȌǤ
ExplanationȄ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Žƒ—•‡ǣ
(a) “fair market value” of a property, other than an immovable property, means the value determined in accordance
with the method as may be prescribed;
ȋ„Ȍ Dz’”‘’‡”–›dz‡ƒ•–Š‡ˆ‘ŽŽ‘™‹‰…ƒ’‹–ƒŽƒ••‡–‘ˆ–Š‡ƒ••‡••‡‡ǡƒ‡Ž›ǣȄ
(i) immovable property being land or building or both;
(ii) shares and securities;
 Lesson 4 Ȉ Part V – Income from Other Sources 295

(iii) jewellery;
(iv) archaeological collections;
(v) drawings;
(vi) paintings;
(vii) sculptures;
(viii) any work of art; or
(ix) bullion.
ȋ…Ȍ Dz”‡Žƒ–‹˜‡dz‡ƒ•ǡȄ
ȋ‹Ȍ ‹…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽȄ
ȋȌ •’‘—•‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǢ
(B) brother or sister of the individual;
(C) brother or sister of the spouse of the individual;
(D) brother or sister of either of the parents of the individual;
ȋȌ ƒ›Ž‹‡ƒŽƒ•…‡†ƒ–‘”†‡•…‡†ƒ–‘ˆ–Š‡‹†‹˜‹†—ƒŽǢ
(F) any lineal ascendant or descendant of the spouse of the individual;
ȋ
Ȍ •’‘—•‡‘ˆ–Š‡’‡”•‘”‡ˆ‡””‡†–‘‹‹–‡•ȋȌ–‘ȋ ȌǢƒ†
ȋ‹‹Ȍ ‹…ƒ•‡‘ˆƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡƒ›‡„‡”–Š‡”‡‘ˆǤ
ȋȌ ›…‘’‡•ƒ–‹‘‘”‘–Š‡”’ƒ›‡–ǡ†—‡–‘‘””‡…‡‹˜‡†„›ƒ›’‡”•‘ǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†ǡ‹…‘‡…–‹‘
™‹–Š–Š‡–‡”‹ƒ–‹‘‘ˆŠ‹•‡’Ž‘›‡–‘”–Š‡‘†‹ϐ‹…ƒ–‹‘‘ˆ–Š‡–‡”•ƒ†…‘†‹–‹‘•”‡Žƒ–‹‰–Š‡”‡–‘Ǥˆ
the same is not taxable under the head Salary. [Section 56(2)(xi)]
Example:
ˆƒ›‹…‘‡‹•‡‹–Š‡”…‘˜‡”‡†„›ϐ‹”•– ‘—”‡ƒ†•‘ˆ…‘‡‘”‹–ˆƒŽŽ•—†‡”‡…–‹‘ͷ͸ȋʹȌ–Š‡‹–‹•–ƒšƒ„Ž‡
—†‡”‡…–‹‘ͷ͸ȋͳȌǤ
ȋͳȌ ›ˆ‡‡•‘”…‘‹••‹‘”‡…‡‹˜‡†„›ƒ‡’Ž‘›‡‡ˆ”‘ƒ’‡”•‘‘–Š‡”–ŠƒŠ‹•‡’Ž‘›‡”Ǥ
ȋʹȌ ›ƒ—‹–›”‡…‡‹˜‡†—†‡”ƒ‹ŽŽǤ–†‘‡•‘–‹…Ž—†‡ƒƒ—‹–›”‡…‡‹˜‡†„›ƒ‡’Ž‘›‡‡ˆ”‘Š‹•‡’Ž‘›‡”Ǥ
ȋ͵Ȍ ŽŽ‹–‡”‡•–‘–Š‡”–Šƒ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡ‡Ǥ‰Ǥ‹–‡”‡•–‘„ƒ†‡’‘•‹–•ǡ‹–‡”‡•–‘Ž‘ƒǡ‡–…Ǥ
ȋͶȌ …‘‡‘ˆƒ–‡ƒ–ˆ”‘•—„ǦŽ‡––‹‰–Š‡™Š‘Ž‡‘”ƒ’ƒ”–‘ˆ–Š‡Š‘—•‡’”‘’‡”–›Ǥ
ȋͷȌ ‡—‡”ƒ–‹‘”‡…‡‹˜‡†„›ƒ–‡ƒ…Š‡”‘”ƒŽƒ™›‡”ˆ‘”†‘‹‰‡šƒ‹ƒ–‹‘™‘”Ǥ
ȋ͸Ȍ …‘‡‘ˆ‘›ƒŽ–›Ǥ
(7) Director’s fees.
ȋͺȌ ‡–‘ˆŽƒ†‘–ƒ’’—”–‡ƒ––‘ƒ›„—‹Ž†‹‰Ǥ
ȋͻȌ ‰”‹…—Ž–—”ƒŽ…‘‡ˆ”‘Žƒ†•‹–—ƒ–‡†‘—–•‹†‡†‹ƒǤ
ȋͳͲȌ …‘‡ˆ”‘ƒ”‡–•ǡˆ‡””‹‡•ƒ†ϐ‹•Š‡”‹‡•ǡ‡–…Ǥ
ȋͳͳȌ …‘‡ˆ”‘Ž‡ƒ•‡Š‘Ž†’”‘’‡rty.
ȋͳʹȌ ‡—‡”ƒ–‹‘”‡…‡‹˜‡†ˆ‘”™”‹–‹‰ƒ”–‹…Ž‡•‹ ‘—”ƒŽ•Ǥ
ȋͳ͵Ȍ …‘‡ˆ”‘—†‹•…Ž‘•‡†•‘—”…‡•Ǥ
ȋͳͶȌ –‡”‡•–”‡…‡‹˜‡†„›ƒ‡’Ž‘›‡‡‘Š‹•‘™…‘–”‹„—–‹‘•–‘ƒ—”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†Ǥ
ȋͳͷȌ ƒ•—ƒŽ‹…‘‡
 296 Lesson 4 Ȉ EP-TL

ȋͳ͸Ȍ ƒŽƒ”›‘ˆƒ‡„‡”‘ˆƒ”Ž‹ƒ‡–ǡ‡„‡”‘ˆ‡‰‹•Žƒ–‹˜‡••‡„Ž›‘”‘—…‹ŽǤ
ȋͳ͹Ȍ –‡”‡•–”‡…‡‹˜‡†‘•‡…—”‹–‹‡•‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǥ
ȋͳͺȌ
”ƒ–—‹–›”‡…‡‹˜‡†„›ƒ†‹”‡…–‘”™Š‘‹•‘–ƒ‡’Ž‘›‡‡‘ˆ–Š‡…‘’ƒ›Ǥ
ȋͳͻȌ ‹”‡…–‘”ǯ•…‘‹••‹‘ˆ‘”‰‹˜‹‰‰—ƒ”ƒ–‡‡–‘„ƒǤ
(20) Director’s commission for underwriting shares of a new company.

Further, under the provisions of Section 60 to 65 an assessee may be chargeable to tax in respect of income arising
–‘‘–Š‡”’‡”•‘•ǡ‡Ǥ‰Ǥ•’‘—•‡‘”‹‘”…Š‹Ž†”‡Ǥ•—…Š…ƒ•‡•ǡ–Š‡‹…‘‡‹“—‡•–‹‘™‹ŽŽ„‡ϐ‹”•–…‘’—–‡†—†‡”
the appropriate head after allowing various deductions and includible in the total income of the assessee under the
head “income from other sources”. In other words, wherever the assessee is taxable in respect of income of somebody
else, the income must be charged to tax in the hands of the assessee only under this head; even if the income is of a
character which would otherwise fall for assessment under any other head of income.

IMPACT OF SECTION 115BAC UNDER THE HEAD INCOME FROM OTHER SOURCES
‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”†‹˜‹†—ƒŽ•ƒ† •—Ȁ•ͳͳͷ‘ˆthe Income
ƒš …–ǡ ͳͻ͸ͳ ™Ǥ‡ǤˆǤ Ȁ ʹͳǦʹʹ –‘ ’”‘˜‹†‡ ˆ‘” …‘…‡••‹‘ƒŽ ”ƒ–‡ ‘ˆ Žƒ„ ƒ–‡• –‘ „‡ ƒ’’Ž‹‡† ‘ ‘–ƒŽ …‘‡
…ƒŽ…—Žƒ–‡†™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ
‡…‡ǡˆ”‘ʹͲʹͳǦʹʹ‘” ʹͲʹͲǦʹͳǡ–Š‡”‡ƒ”‡–™‘‘’‡”ƒ–‹˜‡–ƒš•›•–‡•ǣ
ͳǤ ‡‹•–Š‡š‹•–‹‰–ƒš•›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš”ƒ–‡•
ƒ”‡ƒ•’‡”–Š‡Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
ʹǤ Š‡•‡…‘†‘‡‹••‡…–‹‘ͳͳͷ™Š‹…Š‹•ƒ’–‹‘ƒŽƒš›•–‡ƒ†—†‡”™Š‹…Šƒ›†‡†—…–‹‘• ƒ†
‡š‡’–‹‘•Šƒ˜‡‘–„‡‡ƒŽŽ‘™‡†„—–Ž‘™‡”•Žƒ„–ƒš”ƒ–‡•ƒ”‡’”‘˜‹†‡†‹•‡…–‹‘ͳͳͷ ‹–•‡ŽˆǤ

†‹˜‹†—ƒŽƒ† ‘’–‹‰ˆ‘”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷǣŠ‡†‡†—…–‹‘—†‡”Šƒ’–‡” Ǧ

‘–Š‡” –Šƒ –Š‡ ’”‘˜‹•‹‘• ‘ˆ •—„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ •‡…–‹‘ ͺͲ ‘” •‡…–‹‘ ͺͲ Ǣ ‘– ƒ˜ƒ‹Žƒ„Ž‡ –‘ –Š‡ †‹˜‹†—ƒŽ
ƒ† ‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš …–ǡͳͻ͸ͳǤ
ƒ› ‡š‡’–‹‘• Ƭ †‡†—…–‹‘• ƒ”‡ ‘– ƒŽŽ‘™‡† —†‡” –Š‡ ‡™ –ƒš •›•–‡Ǥ Š‡ „‡Ž‘™ …Šƒ”– …‘–ƒ‹• –Š‡
exemptions and deductions not available under the new system related to Income under the head Other Sources.
‹‹Žƒ”Ž›ǡ†‡†—…–‹‘•Ƭ‡š‡’–‹‘•‘–ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡‡™–ƒš•›•–‡ƒ†™Š‹…Šƒ”‡”‡Žƒ–‡†–‘‘–Š‡”Š‡ƒ†• ƒ”‡
provided in other chapters.
Sr. No. Nature of Exemption/Deduction New system of Tax u/s 115BAC Existing system
Relating to Head Other Sources of Tax
ͳǤ Deduction u/s 57 ŽŽ‘™‡† ‡š…‡’– ‡…–‹‘ ͷ͹ȋ‹‹ƒȌ ‹Ǥ‡Ǥ ŽŽ‘™‡†
Standard Deduction from Family
Pension

CASUAL INCOME [SECTION 56(2)(IB)]

ƒ•—ƒŽ‹…‘‡ ‹…Ž—†‡• ‹…‘‡ „› ™ƒ› ‘ˆ ™‹‹‰• ˆ”‘ Ž‘––‡”‹‡•Ǣ …”‘••™‘”† ’—œœŽ‡•Ǣ ”ƒ…‡• ‹…Ž—†‹‰ Š‘”•‡
races; gambling and betting of any nature or form; card games, game show or entertainment program on
–‡Ž‡˜‹•‹‘‘”‡Ž‡…–”‘‹…‘†‡ƒ†ƒ›‘–Š‡”‰ƒ‡‘ˆƒ›•‘”–ǤŽŽ–Š‡•‡‹…‘‡•ƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”
–Š‡Š‡ƒ†‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•Ǥ‘™‡˜‡”ǡˆ‘ŽŽ‘™‹‰‹…‘‡•ƒ”‡‘–…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz‹…‘‡
ˆ”‘‘–Š‡”•‘—”…‡•dzǣ
(a) Lottery held as stock in trade: ‹‹‰ˆ”‘Ž‘––‡”›–‘ƒƒ‰‡–‘”–”ƒ†‡”‘—–‘ˆ‹–•—•‘Ž†•–‘…‘ˆ lottery
–‹…‡–••ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•‹…‹†‡–ƒŽ–‘„—•‹‡••ƒ†–ƒš‡†—†‡”–Š‡Š‡ƒ†Dz’”‘ϐ‹–ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”
profession”.
(b) Income of jockey: Income of jockey from such profession is not treated as winning from the horse races.
(c) Winning from a motor car rally: ‹‹‰ ˆ”‘ ƒ ‘–‘” …ƒ” ”ƒŽŽ› ‹• ƒ ”‡–—” ˆ‘” •‹ŽŽ ƒ† ‡ˆˆ‘”– ƒ†
cannot be created as casual income, these are taxable as normal income.
 Lesson 4 Ȉ Part V – Income from Other Sources 297

Ȉ ‘†‡†—…–‹‘‘”‡š‡’–‹‘‹•’”‘˜‹†‡†‹”‡•’‡…–‘ˆ–Š‡…ƒ•—ƒŽ‹…‘‡Ǥȏ‡…–‹‘ͷͺȋͶȌȐǤ
Ȉ ‘†‡†—…–‹‘…ƒ„‡…Žƒ‹‡†ˆ”‘•—…Š‹…‘‡‡˜‡‹ˆ•—…Š‡š’‡†‹–—”‡‹•‹…—””‡†‡š…Ž—•‹˜‡Ž›ƒ†
wholly for earning such income.
Ȉ —”–Š‡”ǡ†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ‹•ƒŽ•‘‘–ƒ˜ƒ‹Žƒ„Ž‡ˆ”‘•—…Š‹…‘‡Ǥ
Taxation of Casual Income: ƒ•—ƒŽ‹…‘‡‹•Ž‹ƒ„Ž‡–‘ǤŠ‡…ƒ•—ƒŽ‹…‘‡‹•–ƒš‡†ƒ–ƒϐŽƒ–”ƒ–‡‘ˆ͵ͲΨ’Ž—•
surcharge (if any), plus health and education cess.
Š‡ –Š‡  Šƒ• ƒŽ”‡ƒ†› „‡‡ †‡†—…–‡† ˆ”‘ –Š‡ ‹…‘‡ǡ –Š‡ ‹ ‘”†‡” –‘ …ƒŽ…—Žƒ–‡ –Š‡ –ƒš Ž‹ƒ„‹Ž‹–› ‘ •—…Š
‹…‘‡ǡ–Š‡‹…‘‡‹•–‘„‡‰”‘••‡†—’Ǥȏ‡…–‹‘ͳͳͷȐ
‘™‡˜‡”ǡ–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡•ƒ”‡‘–Ž‹ƒ„Ž‡–‘ǣ
(ͳȌ ‹‹‰ˆ”‘Ž‘––‡”›—’–‘ƒ‘—–•ǤͳͲǡͲͲͲ
ȋʹȌ ‹‹‰ˆ”‘”ƒ…‹‰‘–Š‡”–ŠƒŠ‘”•‡”ƒ…‡
ȋ͵Ȍ ‹‹‰ˆ”‘Š‘”•‡”ƒ…‡—’–‘•ǤͳͲǡͲͲͲǤ

INCOME FROM FAMILY PENSION

Family pension is a regular amount payable by the employer to a family member of a deceased employee. It is taxable
under the head income from other sources. The income by way of family pension is eligible for a standard deduction
—†‡”•‡…–‹‘ͷ͹ȋ‹‹ƒȌ™Š‹…Š‹•‡‹–Š‡”ͳȀ͵”†‘ˆ•—…Š’‡•‹‘‘”•ǤͳͷǡͲͲͲ™Š‹…Š‡˜‡”‹•Ž‘™‡”Ǥ
„‘˜‡–ƒ†ƒ”†‡†—…–‹‘ˆ”‘ˆƒ‹Ž›’‡•‹‘‹•‘–ƒ’’Ž‹…ƒ„Ž‡ˆ‘”••‡••‡‡‘’–‹‰ˆ‘”•‡…–‹‘ͳͳͷǤ
Family pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed
ˆ‘”…‡•ȋ‹…Ž—†‹‰’ƒ”ƒ‹Ž‹–ƒ”›ˆ‘”…‡•Ȍ‘ˆ–Š‡‹‘ǡ™Š‡”‡–Š‡†‡ƒ–Š‘ˆ•—…Š‡„‡”Šƒ•‘……—””‡†‹–Š‡ …‘—”•‡‘ˆ
operational duties, in such circumstances and subject to such conditions, as may be prescribed, shall be exempt from
–ƒš—Ȁ•ͳͲǤ —”–Š‡”ǡ‹…‘‡„›™ƒ›‘ˆˆƒ‹Ž›’‡•‹‘”‡…‡‹˜‡†ƒ•ˆƒ‹Ž›’‡•‹‘‘ˆƒ‹†‹˜‹†—ƒŽ ™Š‘Šƒ•„‡‡‹–Š‡
•‡”˜‹…‡‘ˆ‡–”ƒŽȀ–ƒ–‡
‘˜‡”‡–ƒ†Šƒ•„‡‡ƒ™ƒ”†‡†ƒ”ƒ‹”Šƒ”ƒ‘”ƒŠƒ ‹”Šƒ”ƒ‘”‹”Šƒ”ƒ‘”
•—…Š‘–Š‡”‰ƒŽŽƒ–”›ƒ™ƒ”†ƒ•ƒ›„‡‘–‹ϐ‹‡†‹•ƒŽ•‘‡š‡’–ˆ”‘–ƒš—Ȁ•ͳͲǤ
TAXATION OF DIVIDENDS
Taxability of Dividend upto AY 2020-21
Domesti……‘’ƒ›™ƒ•Ž‹ƒ„Ž‡–‘ƒ›‹˜‹†‡†‹•–”‹„—–‹‘ȋȌ–ƒš—Ȁ•ͳͳͷǦ‘†‹˜‹†‡††‡…Žƒ”‡†‘”’ƒ‹† „›
it. Dividend included deemed dividend u/s 2(22).Therefore DDT was payable both on actual dividend as well as
deemed dividend.
…–—ƒŽ ƒ† †‡‡‡† †‹˜‹†‡† —Ȁ• ʹȋʹʹȌȋƒȌǡȋ„Ȍǡȋ…Ȍ Ƭ ȋ†Ȍ ™ƒ• •—„Œ‡…– –‘ ̷ ͳͷΨ ’Ž—• •—”…Šƒ”‰‡ ̷ ͳʹΨ ’Ž—•
‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡••̷ͶΨǤ—–†‡‡‡††‹˜‹†‡†—Ȁ•ʹȋʹʹȌȋ‡Ȍ™ƒ•Ž‹ƒ„Ž‡–‘„‡ƒ–Š‹‰Š‡””ƒ–‡‘ˆ͵ͲΨ’Ž—•
•—”…Šƒ”‰‡̷ͳʹΨ’Ž—•‡ƒŽ–ŠƬ†—…ƒ–‹‘…‡••̷ͶΨ
‹…‡‘‡•–‹……‘’ƒ›™ƒ•Ž‹ƒ„Ž‡–‘’ƒ›ǡ–Š‡†‹˜‹†‡†”‡…‡‹˜‡†„›•Šƒ”‡Š‘Ž†‡”™ƒ•‡š‡’–—Ȁ•ͳͲȋ͵ͶȌ —’–‘
ͳͲŽƒŠ•‘”‡…‡‹’–‘ˆƒ…–—ƒŽ†‹˜‹†‡†ƒ††‡‡‡††‹˜‹†‡†—Ȁ•ʹȋʹʹȌȋƒȌǡȋ„Ȍǡȋ…ȌƬȋ†ȌǤ‹˜‹†‡†—Ȁ• 2(22)(e) was
ˆ—ŽŽ›‡š‡’–‹Šƒ†•‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”—Ȁ•ͳͲȋ͵ͶȌǤ
‹…‡…–—ƒŽ ƒ† ‡‡‡† †‹˜‹†‡† —Ȁ• ʹȋʹʹȌȋƒȌǡȋ„Ȍǡȋ…Ȍ Ƭ ȋ†Ȍ ™ƒ• …Šƒ”‰‡ƒ„Ž‡ –‘  ƒ– Ž‡•• ”ƒ–‡• ƒ•…‘’ƒ”‡†
–‘ʹȋʹʹȌȋ‡Ȍǡ–Š‡›™‡”‡ƒŽ•‘…Šƒ”‰‡ƒ„Ž‡–‘ƒ††‹–‹‘ƒŽ–ƒš̷ͳͲΨ‹Šƒ†•‘ˆ•’‡…‹ϐ‹‡†•Šƒ”‡Š‘Ž†‡”•—Ȁ•ͳͳͷ‹
‡š…‡••‘ˆ•ǤͳͲŽƒŠ•Ǥ
Taxability of Dividend w.e.f. AY 2021-22
Š‡ ‹ƒ…‡…–ǡʹͲʹͲŠƒ•ƒ„‘Ž‹•Š‡†‹˜‹†‡†‹•–”‹„—–‹‘ƒšˆ‘”†‹˜‹†‡††‡…Žƒ”‡†‘”’ƒ‹†™Ǥ‡ǤˆǤͳȀͶȀʹͲʹͲǤ‡…‡ǡ
‹’Ž‹…ƒ–‹‘‹•ƒ•ˆ‘ŽŽ‘™•ǣ
‡…–‹‘ ͳͳͷǦ ‹• ‘– ƒ’’Ž‹…ƒ„Ž‡ ‘ ‘‡•–‹… …‘’ƒ› ‘ †‹˜‹†‡† ’ƒ‹† ‘” †‡…Žƒ”‡† ™Ǥ‡ǤˆǤ ͳȀͶȀʹͲʹͲǤŠ‡”‡ˆ‘”‡
†‘‡•–‹……‘’ƒ›‹•‘–Ž‹ƒ„Ž‡–‘’ƒ›‹˜‹†‡†‹•–”‹„—–‹‘ƒšǮǯ‘†‹˜‹†‡†’ƒ‹†‘”†‡…Žƒ”‡†™Ǥ‡ǤˆǤͳȀͶȀʹͲʹͲǤ
‹…‡ †‘‡•–‹… …‘’ƒ› ‹• ‘– Ž‹ƒ„Ž‡ –‘ ’ƒ› ǡ ‡š‡’–‹‘ —Ȁ• ͳͲȋ͵ͶȌ •ŠƒŽŽ ƒŽ•‘ ‘– „‡ ƒ’’Ž‹…ƒ„Ž‡ ‹ Šƒ†• ‘ˆ
•Šƒ”‡Š‘Ž†‡”ˆ‘”†‹˜‹†‡†”‡…‡‹˜‡†‘‘”ƒˆ–‡”ͳȀͶȀʹͲʹͲǤŠ‡”‡ˆ‘”‡‘™†‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‘‡•–‹……‘’ƒ›
™‹ŽŽ„‡–ƒšƒ„Ž‡‹Šƒ†•‘ˆ•Šƒ”‡Š‘Ž†‡”•Ǥ‡…–‹‘ͳͳͷ™‹ŽŽƒŽ•‘‘–„‡ƒ’’Ž‹…ƒ„Ž‡™Ǥ‡ǤˆǤͳȀͶʹͲʹͲ
 298 Lesson 4 Ȉ EP-TL

Illustration 1:
–†Ǥ†‡…Žƒ”‡†ƒ†‹˜‹†‡†‘ˆʹͲͲǡͲͲǡͲͲͲˆ‘”–Š‡ ʹͲʹͳǦʹʹƒ††‹•–”‹„—–‡†–Š‡•ƒ‡‘ͳͷ–Š —ŽǯʹʹǤ”Ǥ
Š‘Ž†• ͳͲΨ •Šƒ”‡• ƒ† –Š‡”‡ˆ‘”‡ ”‡…‡‹˜‡•  ʹͲǡͲͲǡͲͲͲ ƒ• †‹˜‹†‡†Ǥ ”  Š‘Ž† ͶΨ •Šƒ”‡• ƒ† –Š‡”‡ˆ‘”‡
”‡…‡‹˜‡•ͺǡͲͲǡͲͲͲƒ•†‹˜‹†‡†Ǥ
Solution:
Š‡–ƒš–”‡ƒ–‡–™‘—Ž†„‡ƒ•—†‡”ǣ
9 ”Ǥ™‘—Ž†‹…Ž—†‡ˆ—ŽŽƒ‘—–‘ˆ•ǤʹͲǡͲͲǡͲͲͲƒ•…‘‡ˆ”‘‘–Š‡”•‘—”…‡•‡™‹ŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš
at applicable slab rates.
9 ”Ǥ™‘—Ž†‹…Ž—†‡ˆ—ŽŽƒ‘—–‘ˆ•ǤͺǡͲͲǡͲͲͲƒ•…‘‡ˆ”‘‘–Š‡”•‘—”…‡•Ǥ‡™‹ŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš
at applicable slab rates.
9 Š‡…‘’ƒ›™‘—Ž†‘–„‡Ž‹ƒ„Ž‡–‘’ƒ›‹˜‹†‡†‹•–”‹„—–‹‘ƒš‘–Š‡†‹˜‹†‡††‹•–”‹„—–‡†—Ȁ•ͳͳͷǦƒ•
the same would be taxable in the hands of shareholders.

Illustration 2:
X is hol†‹‰ʹͻΨ•Šƒ”‡•‹ƒ…‘’ƒ›ƒ†Š‡–‘‘ƒŽ‘ƒ‘ˆʹͲǡͲͲǡͲͲͲˆ”‘–Š‡‘’ƒ›‘ͳͷǤͲ͹ǤʹͲʹͳƒ†
‘–Š‡†ƒ–‡ǡ–Š‡Ž‘ƒ™ƒ•‰”ƒ–‡†ǡ–Š‡ƒ……——Žƒ–‡†’”‘ϐ‹–••–‘‘†ƒ–ͳʹǡͲͲǡͲͲͲǤ‡–‡”‹‡–Š‡–ƒš–”‡ƒ–‡–Ǥ
Solution :
In t h i s case, the company is one, where the public is substantially interested, the loan would not be treated
ƒ• †‡‡‡††‹˜‹†‡†Ǥ‘™‡˜‡”ǡ‹…ƒ•‡–Š‡…‘’ƒ›‹•ƒ…Ž‘•‡Ž›Š‡Ž†…‘’ƒ›ǡŠ‘Ž†•εͳͲΨ•–ƒ‡ǡ–Š‹•Ž‘ƒ—’–‘
ͳʹǡͲͲǡͲͲͲ™‘—Ž†„‡ƒ•†‡‡‡††‹˜‹†‡†ƒ†…‘’ƒ›™‹ŽŽ‘–„‡Ž‹ƒ„Ž‡–‘’ƒ›—Ȁ•ͳͳͷǤ
 ™‘—Ž† ’ƒ› –ƒš ‘ •—…Š †‡‡‡† †‹˜‹†‡† ƒ– ƒ’’Ž‹…ƒ„Ž‡ •Žƒ„ ”ƒ–‡• ƒ† ‡–‹”‡ ƒ‘—– ‘ˆ ͳʹ ŽƒŠ• ™‘—Ž† „‡
included as Income under the head Other sources.

Meaning of the term “Dividend” [Section 2(22)]ǣŠ‡ –‡” Dz†‹˜‹†‡†dz ‹• ‘”†‹ƒ”‹Ž› —•‡† –‘ ”‡ˆ‡” –‘ ƒ›
†‹•–”‹„—–‹‘ƒ†‡„›ƒ…‘’ƒ›–‘‹–••Šƒ”‡Š‘Ž†‡”•‘—–‘ˆ‹–•’”‘ϐ‹–•‹’”‘’‘”–‹‘–‘–Š‡—„‡”‘ˆ•Šƒ”‡•Š‡Ž†„›
the shareholder concerned in the company.
’ƒ”– ˆ”‘ –Šƒ– †‹˜‹†‡† ’ƒ‹† „› ƒ …‘’ƒ› –‘ ‹–• •Šƒ”‡Š‘Ž†‡”•ǡ –Š‡ †‡ϐ‹‹–‹‘ ‘ˆ †‹˜‹†‡† ‹…Ž—†‡• †‡‡‡†
†‹˜‹†‡†ƒ•Žƒ‹††‘™—†‡”•‡…–‹‘ʹȋʹʹȌ‘ˆ–Š‡…–ǡ™Š‹…Š‹•‹…Ž—•‹˜‡„—–‘–‡šŠƒ—•–‹˜‡Ǥ……‘”†‹‰Ž›ǡ–Š‡ˆ‘ŽŽ‘™‹‰
payments or distribution made by a company to its shareholders are deemed as dividends to the extent of
ƒ……——Žƒ–‡† ’”‘ϐ‹–• ‘ˆ –Š‡ …‘’ƒ› ™Š‡–Š‡” …ƒ’‹–ƒŽ‹•‡† ‘” ‘– ȋ‹Ǥ‡Ǥ „‘—• •Šƒ”‡• ‹••—‡† ‹• –Š‡ …ƒ’‹–ƒŽ‹•ƒ–‹‘ ‘ˆ
’”‘ϐ‹–ȌǤ–ƒ›„‡‘–‡†–Šƒ––Š‡•‡’ƒ›‡–•ƒ›‘–„‡…‘˜‡”‡†ƒ•†‹˜‹†‡†—†‡”‘’ƒ‹‡•…–ǡʹͲͳ͵Ǥ
ȋƒȌ ›†‹•–”‹„—–‹‘‹ˆ•—…Š†‹•–”‹„—–‹‘‡–ƒ‹Ž•–Š‡”‡Ž‡ƒ•‡‘ˆƒŽŽ‘”ƒ›’ƒ”–‘ˆ–Š‡ƒ••‡–•‘ˆ–Š‡…‘’ƒ›Ǥ Such
ƒ……——Žƒ–‡†’”‘ϐ‹–•ƒ”‡†‹•–”‹„—–‡†‹…ƒ•Š‘”‹‹†Ǥ ‘”‹‹††‹•–”‹„—–‹‘ǡ–Š‡ƒ”‡–˜ƒŽ—‡‘ˆƒ••‡–•
•ŠƒŽŽ„‡–Š‡†‡‡‡††‹˜‹†‡†‹–Š‡Šƒ†•‘ˆ•Šƒ”‡ǦŠ‘Ž†‡”•Ǥ
ȋ„Ȍ ›†‹•–”‹„—–‹‘‘ˆ†‡„‡–—”‡•ǡ†‡„‡–—”‡Ǧ•–‘…ǡ‘”†‡’‘•‹–…‡”–‹ϐ‹…ƒ–‡•‹ƒ›ˆ‘”ǡ™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–
‹–‡”‡•––‘“—‹–›‘””‡ˆ‡”‡…‡•Šƒ”‡Š‘Ž†‡”•Ǥ›†‹•–”‹„—–‹‘‘ˆ„‘—••Šƒ”‡•–‘‹–•’”‡ˆ‡”‡…‡•Šƒ”‡Š‘Ž†‡”•Ǥ
‘™‡˜‡”ǡ„‘—••Šƒ”‡•ƒŽŽ‘––‡†–‘‡“—‹–›•Šƒ”‡Š‘Ž†‡”•†‘‡•‘–ƒ‘—––‘†‡‡‡††‹˜‹†‡†Ǥ
ȋ…Ȍ ›†‹•–”‹„—–‹‘ƒ†‡‘Ž‹“—‹†ƒ–‹‘‘ˆƒ…‘’ƒ›Ǥ
ȋ†Ȍ ›†‹•–”‹„—–‹‘‘–Š‡”‡†—…–‹‘‘ˆ…ƒ’‹–ƒŽ‘ˆƒ…‘’ƒ›Ǥ
 ‡‡‡††‹˜‹†‡†—†‡”…Žƒ—•‡ȋ…Ȍƒ†…Žƒ—•‡ȋ†Ȍ†‘‡•‘–‹…Ž—†‡ǣ
‹Ǥ ›†‹•–”‹„—–‹‘„›–Š‡…‘’ƒ›–‘•Šƒ”‡Š‘Ž†‡”•‘Ž‹“—‹†ƒ–‹‘‘””‡†—…–‹‘‘ˆ…ƒ’‹–ƒŽ‘ˆ–Š‡…‘’ƒ›
in respect of full cash consideration, where the shareholder is not entitled to participate in the surplus
ƒ••‡–‹–Š‡‡˜‡–‘ˆŽ‹“—‹†ƒ–‹‘Ǥ
 Lesson 4 Ȉ Part V – Income from Other Sources 299

‹‹Ǥ ›’ƒ›‡–ƒ†‡„›ƒ…‘’ƒ›‘’—”…Šƒ•‡‘ˆ‹–•‘™•Šƒ”‡•ˆ”‘ƒ•Šƒ”‡Š‘Ž†‡”‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͹͹‘ˆ–Š‡‘’ƒ‹‡•…–Ǥ
‹‹‹Ǥ ›†‹•–”‹„—–‹‘‘ˆ•Šƒ”‡•ƒ†‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡‘ˆ†‡‡”‰‡”„›–Š‡”‡•—Ž–‹‰…‘’ƒ›
to the shareholders of the demerged company (whether or not there is a reduction of capital in the
demerged company).
ȋ‡Ȍ ›’ƒ›‡–•‹–Š‡ˆ‘”‘ˆŽ‘ƒ•‘”ƒ†˜ƒ…‡•–‘–Š‡‡š–‡–‘ˆƒ……——Žƒ–‡†’”‘ϐ‹–•ȋ‡š…Ž—†‹‰…ƒ’‹–ƒŽ‹•‡†
’”‘ϐ‹–Ȍƒ†‡„›ƒ…Ž‘•‡Ž›ǦŠ‡Ž†…‘’ƒ›ȋ‹Ǥ‡Ǥƒ…‘’ƒ›‹™Š‹…Š’—„Ž‹…ƒ”‡‘–•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†Ȍ–‘ǣ
‹Ǥ ‹–••Šƒ”‡Š‘Ž†‡”™Š‘‹•–Š‡„‡‡ϐ‹…‹ƒŽ‘™‡”‘ˆ•Šƒ”‡•Š‘Ž†‹‰‘–Ž‡••–ŠƒͳͲΨ‘ˆ˜‘–‹‰’‘™‡”‹
such company;
‹‹Ǥ –‘ƒ›…‘…‡”ȋ ǡ ‹”ǡǡ‘”‘’ƒ›Ȍ‹™Š‹…Š•—…Š•Šƒ”‡Š‘Ž†‡”‹•ƒ‡„‡”‘”ƒǢ
‹‹‹Ǥ ’ƒ”–‡”ƒ†‹™Š‹…ŠŠ‡Šƒ•ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–ȋʹͲΨ‘ˆ˜‘–‹‰’‘™‡”‘”•Šƒ”‡‘ˆ’”‘ϐ‹–Ȍƒ›’‡”•‘
‘„‡ŠƒŽˆ‘ˆ•—…Š•Šƒ”‡Š‘Ž†‡”ˆ‘”Š‹•ȀŠ‡”‹†‹˜‹†—ƒŽ„‡‡ϐ‹–Ǥ
‡‡‡††‹˜‹†‡†—†‡”…Žƒ—•‡ȋ‡Ȍ†‘‡•‘–‹…Ž—†‡ǣ
Ȉ ›†‹˜‹†‡†’ƒ‹†„›ƒ…‘’ƒ›™Š‹…Š‹••‡–‘ˆˆ„›–Š‡…‘’ƒ›ƒ‰ƒ‹•––Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆƒ›•—
’”‡˜‹‘—•Ž›’ƒ‹†„›‹–ƒ†–”‡ƒ–‡†ƒ•ƒ†‹˜‹†‡†™‹–Š‹–Š‡‡ƒ‹‰‘ˆ•—„Ǧ…Žƒ—•‡ȋ‡Ȍǡ–‘ the extent to which it
is so set off;
Ȉ ‹†‡…‹”…—Žƒ”‘ǤͳͻȀʹͲͳ͹ǡƒ›–”ƒ†‡ƒ†˜ƒ…‡‹–Š‡ƒ–—”‡‘ˆ…‘‡”…‹ƒŽ–”ƒ•ƒ…–‹‘•™‘—Ž†‘–ˆƒŽŽ
within the ambit of advance;
Ȉ …ƒ•‡‘ˆƒƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǡƒ……——Žƒ–‡†’”‘ϐ‹–‘”Ž‘•••ŠƒŽŽ„‡‹…”‡ƒ•‡†„›–Š‡ƒ……——Žƒ–‡†’”‘ϐ‹–
‘ˆƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ȋ™Š‡–Š‡”…ƒ’‹–ƒŽ‹œ‡†‘”‘–Ȍ‘–Š‡†ƒ–‡‘ˆƒƒŽ‰ƒmation.

CIT v. Parle Plastics Ltd. 332 ITR 63 (Bom.)

If lending of money is a substantial part of the business of the lending company, the money given by it by way of
ƒ†˜ƒ…‡‘”Ž‘ƒ–‘–Š‡ƒ••‡••‡‡…‘—Ž†‘–„‡”‡‰ƒ”†‡†ƒ•ƒ†‹˜‹†‡†ǡƒ•‹–Šƒ†–‘„‡‡š…Ž—†‡†ˆ”‘–Š‡ †‡ϐ‹‹–‹‘
‘ˆDz†‹˜‹†‡†dz„›˜‹”–—‡‘ˆ–Š‡•’‡…‹ϐ‹…‡š…Ž—•‹‘‹•‡…–‹‘ʹȋʹʹȌǤ

Illustration 3:
–†Ǥƒ…Ž‘•‡Ž›ǦŠ‡Ž†…‘’ƒ›Šƒ•„‘—••Šƒ”‡…ƒ’‹–ƒŽ‘ˆ•ǤͳͲŽƒŠ•ǡ
‡‡”ƒŽ‡•‡”˜‡•‘ˆ•Ǥ͸ŽƒŠ•ƒ†
…—””‡–’”‘ϐ‹–•‘ˆ•ǤʹŽƒŠ•ǤŠ‡…‘’ƒ›Šƒ•‰‹˜‡ƒŽ‘ƒ‘ˆ•ǤͻŽƒŠ•–‘‘‡‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”•ǡ™Š‘‹•
„‡‡ϐ‹…‹ƒŽ‘™‡”‘ˆ‡“—‹–›•Šƒ”‡•Š‘Ž†‹‰ͳͲΨ‘ˆ–Š‡˜‘–‹‰’‘™‡”Ǥ
Compute amount of dividend in the hands of shareholder.
Solution:
–Š‹•…ƒ•‡†‹˜‹†‡†—†‡”•‡…–‹‘ʹȋʹʹȌȋ‡Ȍ•ŠƒŽŽ„‡•ǤͺŽƒŠ•ǡ‹Ǥ‡Ǥǡ–‘–Š‡‡š–‡–‘ˆ–Š‡ƒ……——Žƒ–‡†’”‘ϐ‹–•‘ˆ
–Š‡…‘’ƒ›‡š…Ž—†‹‰…ƒ’‹–ƒŽ‹œ‡†’”‘ϐ‹–•Ǥ–•ŠƒŽŽ„‡–ƒšƒ„Ž‡‹Šƒ†•‘ˆ•Šƒ”‡Š‘Ž†‡”—†‡”–Š‡”‘—”…‡•Ǥ

Illustration 4:
”Ǥ‘Š‹–‰‰ƒ”™ƒŽ‹•„‡‡ϐ‹…‹ƒŽ‘™‡”‘ˆ‡“—‹–›•Šƒ”‡•Š‘Ž†‹‰ͳͲΨ‘ˆ–Š‡˜‘–‹‰’‘™‡”‹–†ǡƒ…Ž‘•‡Ž›
Š‡Ž†…‘’ƒ›Ǥ‡‹•’ƒ”–‡”‹ƒ’ƒ”–‡”•Š‹’ϐ‹”ƒ†Šƒ•ʹͲΨ•Šƒ”‡‹–Š‡ϐ‹”ǤŠ‡…‘’ƒ›Šƒ•‰‹˜‡ƒ
Ž‘ƒ‘ˆ•ǤͷŽƒŠ•–‘–Š‡ϐ‹”ƒ†…‘’ƒ›ǯ•ƒ……——Žƒ–‡†’”‘ϐ‹–•ƒ”‡•Ǥ͸ŽƒŠ•Ǥ
‘’—–‡ƒ‘—–‘ˆ†‹˜‹†‡†‹–Š‡Šƒ†•‘ˆ•Šƒ”‡Š‘Ž†‡”ƒ†–Š‡ϐ‹”Ǥ
Solution:
–Š‹•…ƒ•‡†‡‡‡††‹˜‹†‡†‹••ǤͷŽƒŠ•ƒ•’‡”•‡…–‹‘ʹȋʹʹȌȋ‡ȌǤ–•ŠƒŽŽ„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡”‡…‡‹˜‡”
under Other Sources.
 300 Lesson 4 Ȉ EP-TL

DEDUCTIONS ALLOWABLE IN COMPUTING INCOME FROM OTHER SOURCES

From interest on securities [Section 57(i) and (iii)]

From the contributions received by employer from employees towards

P.F./Superannuation/other funds [Section 57(ia)]

DEDUCTIONS ALLOWABLE IN Income derived from letting [Section 57(ii)]

COMPUTING INCOME FROM
OTHER SOURCES Income in the nature of family pension [Section 57(iia)]

Interest on compensation or enhanced

compensation [Section 56(2)(viii)]

Other deductions [Section 57(iii)]

The income chargeable under the head “Income from other sources” is the income after making the following
deduction•ǣ
1. From interest on securities [Section 57(i) and (iii)]: In the case of dividends or interest on securities, any
reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of
realising such dividend or interest on behalf of the assessee, Interest on money borrowed for investment in
securities can be claimed as a deduction.
2. From the contributions received by employer from employees towards P.F./Superannuation/ other
funds [Section 57(ia)]:  –Š‡ …ƒ•‡ ‘ˆ ‹…‘‡ ‘ˆ –Š‡ ƒ–—”‡ ”‡ˆ‡””‡† –‘ ‹ ‡…–‹‘ ʹȋʹͶȋšȌǡ ™Š‹…Š ‹•
…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒš—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dz†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™ƒ„Ž‡‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘͵͸ȋͳȌȋ˜ƒȌǡ‹Ǥ‡Ǥǡ‹ˆ–Š‡‡’Ž‘›‡”Šƒ•…”‡†‹–‡†–Š‡‡’Ž‘›‡‡ǯ•
accounts in the respective funds with the amounts of contributions received, the employer shall be
allowed credit thereof.
3. Income derived from letting [Section 57(ii)]: Š‡”‡‹…‘‡‹•†‡”‹˜‡†ˆ”‘Ž‡––‹‰‘—–‘ˆƒ…Š‹‡”›ǡ
plant or furniture on hire and also buildings where the letting of building is inseparable from the letting
‘ˆ•—…Šƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡ƒ†–Š‡‹…‘‡ˆ”‘•—…ŠŽ‡––‹‰‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘…‘‡Ǧ–ƒš
—†‡”–Š‡Š‡ƒ†Dz”‘ˆ‹–•ƒ†
ƒ‹•‘ˆ—•‹‡••‘”’”‘ˆ‡••‹‘dzǡ–Š‡ˆ‘ŽŽ‘™‹‰‡š’‡•‡•‹…—””‡†‹”‡•’‡…–
‘ˆ–Š‘•‡ƒ••‡–•ǣ
(a) Current repairs of buildings.
(b) Insurance premium against risk of damage or destruction of the premises.
ȋ…Ȍ —””‡–‡’ƒ‹”•ƒ†‹•—”ƒ…‡‘ˆƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡Ǥ
(d) Depreciation.
 Š‡”‡ –Š‡ ‡š’‡•‡• ”‡ˆ‡””‡† –‘ ƒ– ȋƒȌ –‘ ȋ†Ȍ Š‡”‡‹ƒ„‘˜‡ ƒ”‡ ‹…—””‡† ‘ ’”‘’‡”–› —•‡† ’ƒ”–Ž› ˆ‘” –Š‡
business of the assessee, a proportionate deduction shall be allowed.

Illustration 5:
”Ǥ
‘›ƒŽŠƒ•‘‡ˆƒ…–‘”›„—‹Ž†‹‰ƒŽ‘‰™‹–Šƒ…Š‹‡•ƒ†ˆ—”‹–—”‡‹—„ƒ‹™Š‹…ŠŠƒ•„‡‡Ž‡–‘—–̷•Ǥ
ͷͲǡͲͲͲ’ǤǤ‡’ƒ‹”…Šƒ”‰‡•‘ˆ–Š‡„—‹Ž†‹‰‹••Ǥ͹ǡͲͲͲƒ†–Šƒ–‘ˆˆ—”‹–—”‡ϐ‹š–—”‡•ƒ”‡•ǤͶǡͲͲͲǡ‹•—”ƒ…‡
’”‡‹—’ƒ‹†•Ǥ͵ǡͲͲͲƒ††‡’”‡…‹ƒ–‹‘‹••Ǥʹ͹ǡͲͲͲǤ
Compute his income under the head other sources.
 Lesson 4 Ȉ Part V – Income from Other Sources 301

Solution:

Particulars Rs.

”‘••‡–ȋͷͲǡͲͲͲšͳʹȌ 6,00,000
‡••ǣ‡’ƒ‹”‘ˆ„—‹Ž†‹‰ 7,000
‡••ǣ‡’ƒ‹”‘ˆ —”‹–—”‡ƒ†ϐ‹š–—”‡• ͶǡͲͲͲ
‡••ǣ•—”ƒ…‡’”‡‹— ͵ǡͲͲͲ
‡••ǣ‡’”‡…‹ƒ–‹‘ 27,000
Income under the head Other Sources 5,59,000

4. Income in the nature of family pension [Section 57(iia)]: Š‡”‡ƒ”‡‰—Žƒ”‘–ŠŽ›ƒ‘—–‹•’ƒ›ƒ„Ž‡„›

an employer to a person belonging to the family of an employee in the event of his death, i.e., “family pension”, a
•—‡“—ƒŽ–‘͵͵ǦͳȀ͵Ψ‘ˆ–Š‡‹…‘‡‘”•ǤͳͷǡͲͲͲǡ™Š‹…Š‡˜‡”‹•Ž‡••ǡ‹•ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ†‡†—…–‹‘Ǥ
 ‡†—…–‹‘—Ȁ•ͷ͹ȋ‹‹ƒȌ‹•‘–ƒŽŽ‘™‡†–‘••‡••‡‡‘’–‹‰ˆ‘”‡…–‹‘ͳͳͷǤ
5. Interest on compensation or enhanced compensation [Section 57(iv)]: †‡†—…–‹‘‘ˆƒ•—‡“—ƒŽ–‘
ͷͲΨ‘ˆ•—…Š‹…‘‡ƒ†‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†—†‡”ƒ›‘–Š‡”…Žƒ—•‡‘ˆ–Š‹••‡…–‹‘Ǥ
6. Other deductions [Section 57(iii)]: ›‘–Š‡”‡š’‡†‹–—”‡ȋ‘–„‡‹‰‹–Š‡ƒ–—”‡‘ˆ…ƒ’‹–ƒŽ‡š’‡†‹–—”‡Ȍ
laid out or expended wholly and exclusively for the purpose of making or earning such income. [Smt. Virmati
Ramkrishna v. C.I.T. (1981) 131 ITR 659 (Guj)]
“Provided that no deduction shall be allowed from the dividend income, or income in respect of units of a
—–—ƒŽ —†•’‡…‹ϐ‹‡†—Ȁ•ͳͲȋʹ͵Ȍ‘”‹…‘‡‹”‡•’‡…–‘ˆ—‹–•ˆ”‘ƒ•’‡…‹ϐ‹‡†…‘’ƒ›†‡ϐ‹‡†‹–Š‡
š’Žƒƒ–‹‘–‘•‡…–‹‘ͳͲȋ͵ͷȌǡ‘–Š‡”–Šƒ†‡†—…–‹‘‘ƒ……‘—–‘ˆ‹–‡”‡•–‡š’‡•‡ǡƒ†‹ƒ›’”‡˜‹‘—•›‡ƒ”
•—…Š†‡†—…–‹‘•ŠƒŽŽ‘–‡š…‡‡†ʹͲΨ‘ˆ–Š‡†‹˜‹†‡†‹…‘‡ǡ‘”‹…‘‡‹”‡•’‡…–‘ˆ•—…Š—‹–•ǡ‹…Ž—†‡†‹
the total income for that year, without deduction under this section.”. [Inserted by Finance Act, 2020].
The Supreme Court held in CIT v. Rajendra Prasad Moodyȏͳͻ͹ͺȐͳͳͷͷͳͻǡ–Šƒ–‹‘”†‡”–‘…Žƒ‹†‡†—…–‹‘
under section 57 in respect of any expenditure, it is not necessary that income should in fact have been earned
as a result of the expenditure. The Court held that the interest on money borrowed for investment in shares
which had not yielded any taxable dividend was admissible as a deduction under section 57 under the head,
“Income from other sources”.

AMOUNTS NOT DEDUCTIBLE [SECTION 58]

The following amounts shall not be deducted in computing income chargeable under the head “Income from
other Sources”.
–Š‡…ƒ•‡‘ˆƒ›ƒ••‡••‡‡ǣ
ȋ‹Ȍ ›’‡”•‘ƒŽ‡š’‡•‡•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
ȋ‹Ȍ ›‹–‡”‡•–…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡…‘‡Ǧ–ƒš…–™Š‹…Š‹•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒƒ†ˆ”‘™Š‹…Š‹…‘‡Ǧ–ƒš
has not been paid or deducted at source.
ȋ‹‹‹Ȍ ›’ƒ›‡–™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dz‹ˆ‹–‹•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒ—Ž‡••–ƒšŠƒ•„‡‡
paid thereon or deducted therefrom at source.
Note: Š‡†‹•ƒŽŽ‘™ƒ…‡’”‘˜‹•‹‘•’‡”–ƒ‹‹‰–‘†‡ˆƒ—Ž–•…‘˜‡”‡†„›•‡…–‹‘ͶͲȋƒȌȋ‹ƒȌ™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡
for computing the Income chargeable under the head Income from Other Sources.
ȋ‹˜Ȍ ›‡š’‡†‹–—”‡”‡ˆ‡””‡†–‘‹‡…–‹‘ͶͲ‘ˆ…‘‡Ǧ–ƒš…–Ǥ
‘†‡†—…–‹‘‹•ƒŽŽ‘™‡† in respect of any expenditure or allowance in computing the income by way of winnings from
Ž‘––‡”‹‡• …”‘••™‘”† ’—œœŽ‡• ”ƒ…‡• ȋ‹…Ž—†‹‰ Š‘”•‡ ”ƒ…‡•Ȍ …ƒ”† ‰ƒ‡• ƒ† ‘–Š‡” ‰ƒ‡• ‘ˆ ƒ› •‘”– ‘” ˆ”‘
gambling or betting of any form or nature whatsoever. The prohibition however will not apply in respect of income
 302 Lesson 4 Ȉ EP-TL

‘ˆƒƒ••‡••‡‡™Š‘‹•‘™‡”‘ˆŠ‘”•‡•ƒ‹–ƒ‹‡†ˆ‘””—‹‰‹Š‘”•‡”ƒ…‡•ȏ‡…–‹‘ͷͺȋͶȌȐǤŠ‡™‹‹‰•ƒ”‡–ƒš‡†ƒ–
–Š‡”ƒ–‡‘ˆ͵ͲΨǤŠ‡ƒ‘—–‹•–ƒšƒ„Ž‡ƒ–•‘—”…‡ƒ†‹–†‘‡•‘–ƒ––‡”™Š‡–Š‡”ƒ‘—–‰‘‡•–‘‘‡‘”‘”‡”‡…‹’‹‡–•Ǥ
Similarly, the amount spent in buying of infructuous tickets is not deductible as the gross amount will be taxed.
DEEMED INCOME [SECTION 59]
Š‡”e any allowance or deduction has been provided in the assessment of Income under the head “Income From
–Š‡” ‘—”…‡•dz ‹ ƒ› ••‡••‡– ‡ƒ” ‹ ”‡•’‡…– ‘ˆ Ž‘•• ‘” ‡š’‡†‹–—”‡ ‘” –”ƒ†‹‰ Ž‹ƒ„‹Ž‹–› ‹…—””‡† „› –Š‡
ƒ••‡••‡‡ƒ†Žƒ–‡”‘†—”‹‰ƒ›’”‡˜‹‘—•›‡ƒ”ƒ›ƒ‘—–‘”ƒ›”‡‹••‹‘‘”ƒ›„‡‡ϐ‹–‹•‘„–ƒ‹‡†„›ƒ••‡••‡‡
ȋ™Š‡–Š‡”‹…ƒ•Š‘”‘–Š‡”™‹•‡Ȍ–Š‡•—…Šƒ‘—–‘””‡‹••‹‘‘”„‡‡ϐ‹–•ŠƒŽŽ„‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz…‘‡
From Other Sources” in the previous year in which it is so obtained.
SUMMARY OF COMPUTATION OF INCOME UNDER THE HEAD “INCOME FROM OTHER SOURCES”
•’‡”•‡…–‹‘ͳͶͷ‹…‘‡–ƒšƒ„Ž‡—†‡”–Š‹•Š‡ƒ†‹•–‘„‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‡–Š‘†‘ˆ accounting
regularly followed by assessee. In other words; if books of accounts are regularly maintained on “Cash system” then
‹…‘‡•ŠƒŽŽ„‡…‘’—–‡†‘Dz”‡…‡‹’–„ƒ•‹•dzƒ†‹ˆ„‘‘•ƒ”‡”‡‰—Žƒ”Ž›ƒ‹–ƒ‹‡†‘Dz‡”…ƒ–‹Ž‡•›•–‡dz–Š‡
Income shall be computed on “accrual basis”.
COMPUTATION OF INCOME FROM OTHER SOURCES

…‘‡–ƒšƒ„Ž‡—†‡”‡…–‹‘ͷ͸Ƭͷͻ XXXX
Less:Ǧš’‡†‹–—”‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘—†‡”‡…–‹‘ͷ͹ XXXX
Income taxable under the head “Income From Other Sources” XXXX

Illustration 6:

‹Š‹Žǡƒ†‡ƒŽ‡”‹•Šƒ”‡•”‡…‡‹˜‡†ˆ”‘Š‹•ˆ”‹‡†•Š—Žǡ–Š‡ˆ‘ŽŽ‘™‹‰™‹–Š‘—–ƒ›…‘•‹†‡”ƒ–‹‘ǣ
ȋƒȌ ƒ•Š
‹ˆ–ͳͲͲǡͲͲͲ‘Š‹•„‹”–Š†ƒ›ȋͳͶ–Š’”‹ŽȌǤ
ȋ„Ȍ —ŽŽ‹‘ǡ ͹ͷǡͲͲͲ‘Š‹•ƒ‹˜‡”•ƒ”›ȋʹʹ†’”‹ŽȌǤ
ȋ…Ȍ Ž‘–‘ˆŽƒ†ƒ–
—”‰ƒ‘‘ͳ•– —ǯʹͳǡ•–ƒ’†—–›˜ƒŽ—‡͹ͷͲǡͲͲͲ‘–Šƒ–†ƒ–‡Ǥ

†˜‹•‡‘–ƒš–”‡ƒ–‡–Ǥ
Solution:
ƒȌ ƒ•Š
‹ˆ–‹•εͷͲͲͲͲǡ–Š‡”‡ˆ‘”‡ǡ–Š‡‡–‹”‡ƒ‘—–‘ˆͳͲͲǡͲͲͲ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•…‘‡ ˆ”‘
Other Sources.
b) Bullion received without consideration is taxable too in full as it is received without consideration,
–Š‡”‡ˆ‘”‡ǡ–Š‡‡–‹”‡ƒ‘—–‘ˆ͹ͷͲͲͲ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•…‘‡ˆ”‘–Š‡”‘—”…‡•Ǥ
c) Plot of land received without consideration is taxable too in full as it is received without consideration,
–Š‡”‡ˆ‘”‡ǡ–Š‡‡–‹”‡ƒ‘—–‘ˆ͹ͷͲǡͲͲͲ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•…‘‡ˆ”‘–Š‡”‘—”…‡•Ǥ

Illustration 7:
‹•Šƒǡ‘ͳ•–‡…ǯʹͳ–‘‘’‘••‡••‹‘‘ˆƒϐŽƒ–„‘‘‡†„›Š‡”ʹ›‡ƒ”•„ƒ…ǡƒ–ʹͷǡͲͲǡͲͲͲǤŠ‡–ƒ’—–›‘ˆ
–Š‡ϐŽƒ–‘–Š‡†ƒ–‡‘ˆ’‘••‡••‹‘™ƒ•ͶͲǡͲͲǡͲͲͲƒ†‘–Š‡†ƒ–‡‘ˆ„‘‘‹‰™ƒ•͵ʹǡͲͲǡͲͲͲǤŠ‡Šƒ†
’ƒ‹†ʹͲͲǡͲͲͲ„›ƒ……‘—–’ƒ›‡‡…Š‡“—‡ǡ‘†ƒ–‡‘ˆ„‘‘‹‰Ǥ
†˜‹•‡–ƒš–”‡ƒ–‡–Ǥ
Solution:
–‹•–‘„‡‘–‡†–Šƒ–™Š‡”‡–Š‡†ƒ–‡‘ˆ–Š‡ƒ‰”‡‡‡–ϐ‹š‹‰–Š‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆ
immovable property and the date of registration are not the same, the stamp duty value on the date of the
Lesson 4 Ȉ Part V – Income from Other Sources 303

ƒ‰”‡‡‡–ȋ‹–Š‹•…ƒ•‡„‘‘‹‰Ȍ ƒ›„‡ –ƒ‡Ǥ‘™‡˜‡”ǡ –Š‹•‡š…‡’–‹‘ •ŠƒŽŽƒ’’Ž› ‘Ž› ‹ ƒ…ƒ•‡™Š‡”‡ –Š‡
amount of consideration referred to therein, or a part thereof, has been paid by any mode other than cash on or
before the date of the agreement for the transfer of such immovable property.
Š‡”‡ˆ‘”‡ǡ–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡–ƒ’—–›ƒŽ—‡‘†ƒ–‡‘ˆ„‘‘‹‰ȋ͵ʹǡͲͲǡͲͲͲȌƒ†–Š‡ƒ…–—ƒŽ
…‘•‹†‡”ƒ–‹‘ ȋ ʹͷǡͲͲǡͲͲͲȌǢ ‹Ǥ‡Ǥǡ  ͹ͲͲǡͲͲͲ ™‘—Ž† „‡ –ƒšƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† Dz…‘‡ ˆ”‘ –Š‡”
Sources”.

Illustration 8:
‹•…—••–Š‡–ƒšƒ„‹Ž‹–›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰–”ƒ•ƒ…–‹‘•‹–Š‡Šƒ†•‘ˆ–Š‡”‡…‹’‹‡–ǣ
ͳǤ  ”‡…‡‹˜‡†ˆ”‘–Š‡ƒ”–ƒǯ•‹‡…‡ǡͺͲǡͲͲͲ‹…ƒ•ŠǤ
ʹǤ Š”—–‹ǡƒ‡„‡”‘ˆŠ‡”ˆƒ–Š‡”ǯ• ǡ–”ƒ•ˆ‡””‡†–‘–Š‡ ƒ’”‘’‡”–›™‹–Š‘—–ƒ›…‘•‹†‡”ƒ–‹‘ǤŠ‡
–ƒ’—–›˜ƒŽ—ƒ–‹‘™ƒ•ͳʹǡͲͲǡͲͲͲǤ
͵Ǥ ‘„‹”‡…‡‹˜‡†ˆ”‘Š‹•ˆ”‹‡†ͳͲͲ•Šƒ”‡•‘ˆʹͲͲ‡ƒ…Šƒ†Œ‡™‡ŽŽ‡”›™‘”–ŠͷͷǡͲͲͲȋ Ȍˆ”‘Š‹•
nephew on the same day.
ͶǤ  ‰‹ˆ–‡†ƒƒ”–‘–Š‡ƒ”–ƒǯ••‘ǡˆ‘”„”‹ŽŽ‹ƒ–’‡”ˆ‘”ƒ…‡‹–Š‡„‘ƒ”†‡šƒ•ǤŠ‡ ‘ˆƒ” ™ƒ•
ͳͲǡͲͲǡͲͲͲǤ
Solution:
ͳǤ Taxable: — ‘ˆ ‘‡› ”‡…‡‹˜‡† ‡š…‡‡†‹‰  ͷͲǡͲͲͲ ™‹–Š‘—– …‘•‹†‡”ƒ–‹‘ ˆ”‘ ƒ ‘Ǧ”‡Žƒ–‹˜‡ ‹•
–ƒšƒ„Ž‡ǤŠ‡”‡ˆ‘”‡ͺͲͲͲͲ‹•–ƒšƒ„Ž‡ƒ•Š‹•‹‡…‡ǡ‘–„‡‹‰ƒ‡„‡”‘ˆ–Š‡ ‹•‘–ƒ”‡Žƒ–‹˜‡‘ˆ–Š‡
 Ǥ
2. Non-Taxable: ‘˜ƒ„Ž‡’”‘’‡”–›”‡…‡‹˜‡†™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ˆ”‘ƒ”‡Žƒ–‹˜‡‹•‘Ǧ–ƒšƒ„Ž‡Ǥ‹…‡
Š”—–‹‹•ƒ‡„‡”‘ˆ–Š‡ ǡ•Š‡‹•ƒ”‡Žƒ–‹˜‡‘ˆ–Š‡ ƒ†Š‡…‡–Š‡•ƒ‡‹•‘––ƒšƒ„Ž‡Ǥ
͵Ǥ Taxable:  –Š‹• …ƒ•‡ǡ –Š‡ ƒ‰‰”‡‰ƒ–‡  ‘ˆ –Š‡ ’”‘’‡”–› ‘–Š‡” –Šƒ ‹‘˜ƒ„Ž‡ ’”‘’‡”–›ǡ ”‡…‡‹˜‡†
™‹–Š‘—– …‘•‹†‡”ƒ–‹‘ ‡š…‡‡†•  ͷͲͲͲͲ ȋ ͹ͷǡͲͲͲ ƒ…–—ƒŽŽ› ˆ‘” –Š‡ •Šƒ”‡• Ƭ Œ‡™‡ŽŽ‡”› –‘‰‡–Š‡”ȌǤ
‡…‡ǡ–Š‡‡–‹”‡ƒ‘—–™‘—Ž†„‡–ƒšƒ„Ž‡Ǥ
ͶǤ Non-taxable: ƒ”‹•‘–ƒ’”‘’‡”–›ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡…–‹‘ͷ͸ƒ†Š‡…‡–Š‡–”ƒ•ƒ…–‹‘‹•‘Ǧ–ƒšƒ„Ž‡Ǥ

Illustration 9:
”Ǥ  ‹• ‰‡––‹‰ ˆƒ‹Ž› ’‡•‹‘ ‘ˆ •Ǥ ͹ǡͲͲͲ ’ǤǤ ‡ ƒŽ•‘ Šƒ• †‹˜‹†‡† ‹…‘‡ ˆ”‘ †‘‡•–‹… …‘’ƒ› ‘ˆ •Ǥ
͹ǡͲͲǡͲͲͲǤ ‡ Šƒ• Ž‘‰ –‡” …ƒ’‹–ƒŽ ‰ƒ‹ ‘ˆ •Ǥ ͵ǡͺͻǡͲͲͲǤ ‡ ‹• ‡–‹–Ž‡† –‘ †‡†—…–‹‘ ‘ˆ •ǤͳǡͲͲǡͲͲͲ —Ȁ• ͺͲ
‘’—–‡Š‹•–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵
Option 1ǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Option 2ǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:
Option 1 : Assessee has not opted for Section 115BAC

Particulars Amount (Rs.) Amount (Rs.)

ƒ‹Ž›‡•‹‘ȋ͹ǡͲͲͲšͳʹȌ ͺͶǡͲͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͷ͹ȋ‹‹ƒȌ ȋͳͷǡͲͲͲȌ 69,000
ȏͳȀ͵‘ˆ•ǤͺͶǡͲͲͲ‘”•ǤͳͷǡͲͲͲ™Š‹…Š‡˜‡”‹•Ž‡••Ȑ
Dividend income 7,00,000
Income under the head Other Sources 7,69,000
…‘‡—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•
304 Lesson 4 Ȉ EP-TL

‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹ ͵ǡͺͻǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳͳǡͷͺǡͲͲͲ

‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ–‘ͺͲ ȋͳǡͲͲǡͲͲͲȌ

Total Income ͳͲǡͷͺǡͲͲͲ

‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›
ƒš‘͵ǡͺͻǡͲͲͲ̷ʹͲΨ—Ȁ•ͳͳʹ 77,800
Tax on 6,69,000 at slab rate Ͷ͸ǡ͵ͲͲ
ƒš„‡ˆ‘”‡Š‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡•• ͳǡʹͶǡͳͲͲ
††ǣ̷ͶΨ Ͷǡͻ͸Ͷ
ƒš‹ƒ„‹Ž‹–› ͳǡʹͻǡͲ͸Ͷ
‘—†‡†‘ˆˆ—Ȁ•ʹͺͺ ͳǡʹͻǡͲ͹Ͳ

Option 2 : Assessee has opted for Section 115BAC

Particulars Amount (Rs.) Amount (Rs.)

ƒ‹Ž›‡•‹‘ȋ͹ǡͲͲͲšͳʹȌ ͺͶǡͲͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͷ͹ȋ‹‹ƒȌ Ȁ ͺͶǡͲͲͲ

Dividend income 7,00,000

Income under the head Other Sources ͹ǡͺͶǡͲͲͲ

…‘‡—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•
‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹ ͵ǡͺͻǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳͳǡ͹͵ǡͲͲͲ

‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ–‘ͺͲ Ȁ

Total Income ͳͳǡ͹͵ǡͲͲͲ

‘’—–ƒ–‹‘‘ˆƒš‹ƒ„‹Ž‹–›
ƒš‘͵ǡͺͻǡͲͲͲ̷ʹͲΨ—Ȁ•ͳͳʹ 77,800

ƒš‘͹ǡͺͶǡͲͲͲƒ–‡™•Žƒ„”ƒ–‡ Ͳ–‘ʹǡͷͲǡͲͲͲǣ‹Ž Ͷʹǡ͸ͲͲ

εʹǡͷͲǡͲͲͲ–‘ͷǡͲͲǡͲͲͲǣͳʹǡͷͲͲ‹Ǥ‡ǤͷΨ
εͷǡͲͲǡͲͲͲ–‘͹ǡͷͲǡͲͲͲǣʹͷǡͲͲͲ‹Ǥ‡ǤͳͲΨ
ε͹ǡͷͲǡͲͲͲ–‘͹ǡͺͶǡͲͲͲǣͷǡͳͲͲ‹Ǥ‡ǤͳͷΨ
ƒš„‡ˆ‘”‡Š‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡•• ͳʹͲͶͲͲ
††ǣ̷ͶΨ Ͷͺͳ͸
ƒš‹ƒ„‹Ž‹–› ͳʹͷʹͳ͸
‘—†‡†‘ˆˆ—Ȁ•ʹͺͺ ͳʹͷʹʹͲ
Lesson 4 Ȉ Part V – Income from Other Sources 305

CASE LAWS
ͳǤ ʹ͹ǤͲͺǤʹͲͳ͵ Commissioner of Income Tax v. Smt. Swapna Roy Allahabad High Court
Disallowance of Deduction of interest under section 57(iii) of the Income tax Act, 1961
Facts of the Case: Š‡ƒ••‡••‡‡‹•ƒ’ƒ”–‡”‘ˆȀ•ǤƒŠƒ”ƒ†‹ƒȋ ‹”ȌǢƒ†‹”‡…–‘”‹˜ƒ”‹‘—•…‘’ƒ‹‡•‘ˆ
Ȁ•ǤƒŠƒ”ƒ
”‘—’Ǥ ‘”–Š‡ƒ••‡••‡–›‡ƒ”ͳͻͻ͹Ǧͻͺǡ–Š‡ƒ••‡••‡‡Šƒ•ϐ‹Ž‡†Ž‘••”‡–—”ˆ‘”•Ǥ͵͸ǡͶͺǡͲͻǡͷͷͲȀǦǤ
Š‹Ž‡…‘’Ž‡–‹‰”‡‰—Žƒ”ƒ••‡••‡–ǡ–Š‡••‡••‹‰ˆϐ‹…‡”†‹•ƒŽŽ‘™‡†–Š‡‹–‡”‡•–‘ˆ•Ǥ͵͸ǡͷ͹ǡʹ͹ǡͳͻͷȀǦ…Žƒ‹‡†
by the assessee as interest paid on loan for purchase of shares under the head “income from other sources”. The
••‡••‹‰ˆϐ‹…‡”‘–‹…‡†–Šƒ––Š‡ƒ••‡••‡‡Šƒ†‘„–ƒ‹‡†Ž‘ƒˆ”‘Ȁ•ǤƒŠƒ”ƒ†‹ƒ—–—ƒŽ‡‡ϐ‹–‘Ǥ–†Ǥǡ
ƒ†–Š‡Ž‘ƒƒ‘—–™ƒ•‹˜‡•–‡†‹’—”…Šƒ•‡‘ˆ•Šƒ”‡•‘ˆ…Ž‘•‡Ž›Š‡Ž†…‘’ƒ‹‡•‘ˆƒŠƒ”ƒ
”‘—’™Š‹…Š™‡”‡
incurring heavy losses and there was no possibility to get dividend on share capital of these companies. Further,
–Š‡ ƒ••‡••‡‡ ™ƒ• Šƒ˜‹‰ ƒ •—„•–ƒ–‹ƒŽ ‹–‡”‡•– ‹ –Š‡ …‘’ƒ‹‡• ‘ˆ ƒŠƒ”ƒ
”‘—’Ǥ ‘ǡ –Š‡  ‘’‹‡† –Šƒ– „›
making investment of “borrowed interest bearing funds” for non productive purpose, the assessee had diverted
his income and had adopted a colorable device to reduce tax liability. So, he has disallowed the claim made by
–Š‡••‡••‡‡’‡”–ƒ‹‹‰–‘–Š‡‹–‡”‡•–ƒ†ƒ†‡–Š‡ƒ††‹–‹‘‹‡ƒ…Š…ƒ•‡ǡ™Š‹…Š™ƒ•†‡Ž‡–‡†„›–Š‡ϐ‹”•–ƒ’’‡ŽŽƒ–‡
ƒ—–Š‘”‹–›ƒ•™‡ŽŽƒ•–Š‡”‹„—ƒŽǤ‘–„‡‹‰•ƒ–‹•ϐ‹‡†ǡ–Š‡‡’ƒ”–‡–ϐ‹Ž‡†ƒƒ’’‡ƒŽ„‡ˆ‘”‡‹‰Š‘—”–Ǥ
Judgement:ƒ“—‡•–‹‘™Š‡–Š‡”–Š‡ƒ‘—–‹˜‡•–‡†„›–Š‡ƒ••‡••‡‡‹•‹•–‡”…‘…‡”•”—‹‰‹Ž‘•••‹…‡
several years may be treated as investment or expenditure made exclusively for the purpose of making or
‡ƒ”‹‰•—…Š‹…‘‡ǡ–Š‡ŽŽƒŠƒ„ƒ†‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡‡š’‡†‹–—”‡–‘™ƒ”†•‹–‡”‡•–‘Ž‘ƒ…ƒ‘–„‡
said to have been laid out wholly and exclusively for the purpose of making earning income but was a colourable
†‡˜‹…‡ǡ–‘—–‹Ž‹œ‡–Š‡ˆ—†•‘ˆ‘‡…‘’ƒ›‹–Š‡‘–Š‡”•‹•–‡”…‘…‡”ƒ†–Š‡”‡ˆ‘”‡ǡ–Š‡‹–‡”‡•–‘Ž‘ƒ‹•‘–
allowable deduction under section 57(iii).
—”–Š‡”‘–Š‡’”‹…‹’Ž‡‘ˆ…‘•‹•–‡…›ǡ–Š‡‹‰Š‘—”–Š‡Ž†–Šƒ–‹…ƒ•‡ƒƒ••‡••‡‡…Šƒ‰‡•Š‹•‘”Š‡”•–ƒ†
”‡’‡ƒ–‡†Ž›ƒ††‘‡•‘–…‘‡™‹–Šƒ…Ž‡ƒŠƒ†ǡ–Š‡‹–•ŠƒŽŽ„‡•—ˆϐ‹…‹‡––‘†‡’ƒ”–ˆ”‘‡ƒ”Ž‹‡”’”ƒ…–‹…‡ƒ†–Š‡
principle of consistency shall not come in the way to assess the income on the basis of the material on record.

2. ͲͶǤͲͳǤʹͲͳ͹ Gopal & Sons (HUF) v.CIT Supreme Court

Is loan to HUF who is a shareholder in a closely held company chargeable to tax as deemed dividend?
Facts of the Case: Š‡ƒ••‡••‡‡‹•ƒ‹†—†‹˜‹†‡† ƒ‹Ž›ȋ ȌǤ—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”–‘–Š‡••‡••‡–
‡ƒ”ǡ–Š‡ƒ••‡••‡‡Šƒ†”‡…‡‹˜‡†…‡”–ƒ‹ƒ†˜ƒ…‡•ˆ”‘‘‡Ȁ•Ǥ
ǤǤ ‡”–‹Ž‹œ‡”•ȋȌ–†ǤȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘
ƒ•–Š‡Ǯ‘’ƒ›ǯȌǤŠ‡‘’ƒ›‹•–Š‡ƒ—ˆƒ…–—”‡”ƒ††‹•–”‹„—–‘”‘ˆ˜ƒ”‹‘—•‰”ƒ†‡•‘ˆ ‡”–‹Ž‹œ‡”•ƒ†
‘–Š‡”ƒ‰”‹…—Ž–—”ƒŽ‹’—–•Ǥ–Š‡ƒ—†‹–”‡’‘”–ƒ†ƒ—ƒŽ”‡–—”ˆ‘”–Š‡”‡Ž‡˜ƒ–’‡”‹‘†ǡ™Š‹…Š™ƒ•ϐ‹Ž‡†„›‹–
„‡ˆ‘”‡–Š‡‡‰‹•–”ƒ”‘ˆ‘’ƒ‹‡•ȋȌǡ‹–™ƒ•ˆ‘—†–Šƒ––Š‡•—„•…”‹„‡†•Šƒ”‡…ƒ’‹–ƒŽ‘ˆ–Š‡•ƒ‹†‘’ƒ›™ƒ•
•ǤͳǡͲͷǡ͹ͷǡͲͲͲȀǦȋ‹Ǥ‡ǤǡͳͲǡͷ͹ǡͷͲͲ•Šƒ”‡•‘ˆ•ǤͳͲȀǦ‡ƒ…ŠȌǤ—–‘ˆ–Š‹•ǡ͵ǡͻʹǡͷͲͲ—„‡”‘ˆ•Šƒ”‡•™‡”‡•—„•…”‹„‡†
„› –Š‡ ƒ••‡••‡‡ ™Š‹…Š ”‡’”‡•‡–‡† ͵͹ǤͳʹΨ ‘ˆ –Š‡ –‘–ƒŽ •Šƒ”‡Š‘Ž†‹‰ ‘ˆ –Š‡ ‘’ƒ›Ǥ ”‘ –Š‹• ˆƒ…–ǡ –Š‡ 
…‘…Ž—†‡†–Šƒ––Š‡ƒ••‡••‡‡™ƒ•„‘–Š–Š‡”‡‰‹•–‡”‡†•Šƒ”‡Š‘Ž†‡”‘ˆ–Š‡‘’ƒ›ƒ†ƒŽ•‘–Š‡„‡‡ϐ‹…‹ƒŽ‘™‡”
‘ˆ•Šƒ”‡•ǡƒ•‹–™ƒ•Š‘Ž†‹‰‘”‡–ŠƒͳͲΨ‘ˆ˜‘–‹‰’‘™‡”Ǥ–Š‹•„ƒ•‹•ǡƒˆ–‡”‘–‹…‹‰–Šƒ––Š‡ƒ—†‹–‡†ƒ……‘—–•
‘ˆ–Š‡‘’ƒ›™ƒ••Š‘™‹‰ƒ„ƒŽƒ…‡‘ˆ•ǤͳǡʹͲǡͳͲǡͻͺͺȀǦƒ•Dz‡•‡”˜‡Ƭ—”’Ž—•dzƒ•‘͵ͳ•–ƒ”…ŠǡʹͲͲ͸ǡ–Š‹•
ƒ‘—–™ƒ•‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ƒ•†‡‡‡††‹˜‹†‡†Ǥ–Š‡ƒ’’‡ƒŽϐ‹Ž‡†„›–Š‡ƒ••‡••‡‡ǡ–Š‡
ƒˆ‘”‡•ƒ‹†ƒ††‹–‹‘™ƒ•ƒˆϐ‹”‡†„›–Š‡ȋȌǤŠ‡”‹„—ƒŽ”‡˜‡”•‡†–Š‡ȋȌǤŠ‡‹‰Š‘—”–”‡˜‡”•‡†–Š‡
”‹„—ƒŽǤ ‡ˆ‘”‡ –Š‡ —’”‡‡ ‘—”–ǡ –Š‡ ƒ••‡••‡‡ ƒ”‰—‡† –Šƒ– „‡‹‰ ƒ  ǡ ‹– ™ƒ• ‡‹–Š‡” –Š‡ „‡‡ϐ‹…‹ƒŽ
shareholder nor the registered shareholder. It was further argued that the Company had issued shares in the name
‘ˆŠ”‹
‘’ƒŽ—ƒ”ƒ‡‹ǡƒ”–ƒ‘ˆ–Š‡ ǡƒ†‘–‹–Š‡ƒ‡‘ˆ–Š‡ƒ••‡••‡‡Ȁ ƒ••Šƒ”‡•…‘—Ž†‘–„‡†‹”‡…–Ž›
ƒŽŽ‘––‡†–‘ƒ Ǥ–Šƒ–„ƒ•‹•ǡ‹–™ƒ••—„‹––‡†–Šƒ–’”‘˜‹•‹‘•‘ˆ‡…–‹‘ʹȋʹʹȌȋ‡Ȍ‘ˆ–Š‡…–…ƒ‘–„‡ƒ––”ƒ…–‡†Ǥ
Judgement: Š‡ —’”‡‡ ‘—”– Š‡Ž† ƒ• –Š‡ •Šƒ”‡• ƒ”‡ ‹••—‡† ‹ –Š‡ ƒ‡ ‘ˆ –Š‡ ƒ”–ƒǡ –Š‡   ‹• ‘– –Š‡
Dz”‡‰‹•–‡”‡†•Šƒ”‡Š‘Ž†‡”dzƒ†•‘•ǤʹȋʹʹȌȋ‡Ȍ™‹ŽŽ‘–ƒ’’Ž›–‘Ž‘ƒ•’ƒ‹†–‘–Š‡ ‹•‘–…‘””‡…–„‡…ƒ—•‡‹–Š‡
ƒ—ƒŽ”‡–—”•ϐ‹Ž‡†™‹–Š–Š‡ǡ–Š‡ ‹••Š‘™ƒ•–Š‡”‡‰‹•–‡”‡†ƒ†„‡‡ϐ‹…‹ƒŽ•Šƒ”‡Š‘Ž†‡”Ǥƒ›…ƒ•‡ǡ–Š‡
 ‹•–Š‡„‡‡ϐ‹…‹ƒŽ•Šƒ”‡Š‘Ž†‡”Ǥ˜‡‹ˆ‹–‹•ƒ••—‡†–Šƒ––Š‡ƒ”–ƒ‹•–Š‡”‡‰‹•–‡”‡†•Šƒ”‡Š‘Ž†‡”ƒ†‘––Š‡
 ǡƒ•’‡”š’Žƒƒ–‹‘͵–‘•ǤʹȋʹʹȌǡƒ›’ƒ›‡––‘ƒ…‘…‡”ȋ‹Ǥ‡Ǥ–Š‡ Ȍ‹™Š‹…Š–Š‡•Šƒ”‡Š‘Ž†‡”ȋ‹Ǥ‡Ǥ–Š‡
ƒ”–ƒȌŠƒ•ƒ•—„•–ƒ–‹al interest is also covered
306 Lesson 4 Ȉ EP-TL

͵Ǥ ͲͺǤͲͻǤʹͲͳͲ CIT v. Manjoo and Co Kerala High Court

Can winnings of prize money on unsold lottery tickets held by the distributor of lottery tickets be
assessed as business income and be subject to normal rates of tax instead of the rates prescribed under
section115BB of the Income tax Act, 1961?
Facts of the Case: The ”‡•’‘†‡– ƒ••‡••‡‡ ‹• ƒ ™Š‘Ž‡•ƒŽ‡ †‹•–”‹„—–‘” ‘ˆ Ž‘––‡”‹‡• ‘”‰ƒ‹œ‡† „› –Š‡ –ƒ–‡ ‘ˆ
‡”ƒŽƒ ƒ† —†‡” –Š‡ †‹•–”‹„—–‹‘ ƒ‰”‡‡‡– ”‡•’‘†‡– ‹• ‡–‹–Ž‡† –‘ …‡”–ƒ‹ †‹•…‘—– ‘ –Š‡ ’—”…Šƒ•‡ ‘ˆ
lottery tickets. If the tickets purchased are not fully sold out by the respondent before the draw date then loss
™‹ŽŽ„‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡”‡•’‘†‡–Ǥ ‘”–Š‡’”‡˜‹‘—•›‡ƒ”•”‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”•ʹͲͲͲǦͲͳƒ†
ʹͲͲͳǦͲʹ…‡”–ƒ‹—•‘Ž†–‹…‡–•Š‡Ž†„›–Š‡”‡•’‘†‡–ƒ••‡••‡‡™‡”‡–Š‡’”‹œ‡™‹‹‰–‹…‡–•ƒ†‘’”‘†—…–‹‘
‘ˆ–Š‘•‡–‹…‡–•–Š‡‘––‡”›‹”‡…–‘”ƒ–‡’ƒ‹†–Š‡’”‹œ‡‘‡›–‘–Š‡”‡•’‘†‡–ƒˆ–‡””‡…‘˜‡”›‘ˆ–ƒšƒ–•‘—”…‡
treating the payments as “winning from lottery”.
˜‡–Š‘—‰Š”‡•’‘†‡–ƒ••‡••‡‡ƒ……‘—–‡†–Š‡”‡…‡‹’–‘ˆ‹…‘‡‹–Š‡’”‘ˆ‹–ƒ†Ž‘••ƒ……‘—–ƒ•’”‹œ‡™‘
ˆ”‘Ž‘––‡”›ǡ‹–Š‡‹…‘‡–ƒš”‡–—”•ˆ‹Ž‡†ǡ–Š‡”‡•’‘†‡–…Žƒ‹‡†–Šƒ––Š‡’”‹œ‡‘‡›”‡…‡‹˜‡†ˆ”‘–Š‡
‘––‡”› ‡’ƒ”–‡– ”‡’”‡•‡–• ‹…‘‡ ‘– ƒ••‡••ƒ„Ž‡ —†‡” –Š‡ •’‡…‹ƒŽ ’”‘˜‹•‹‘• …‘–ƒ‹‡† ‹ Section
ͳͳͷ ‘ˆ–Š‡…‘‡ƒš…–„—–ƒ••‡••ƒ„Ž‡ƒ•„—•‹‡••‹…‘‡ǤŠ‡…‘‡ƒšˆˆ‹…‡”Š‘™‡˜‡””‡Œ‡…–‡†–Š‡
…Žƒ‹ Š‘Ž†‹‰ –Šƒ– ’”‹œ‡ ‘‡› ”‡…‡‹˜‡† ‹ Ž‘––‡”› ‹• ƒ••‡••ƒ„Ž‡ ƒ– –Š‡ •’‡…‹ƒŽ ”ƒ–‡ ’”‘˜‹†‡† —†‡” Section
ͳͳͷ and so much so it cannot be treated as business income. The first appeal filed by the respondent was
allowed and the Tribunal confirmed it on second appeal filed by the department against which these appeals
are filed.
Judgement:‘—”˜‹‡™–Š‡†‡…‹•‹‘•Š‘—Ž†‘–‹ϐŽ—‡…‡‹–‡”’”‡–ƒ–‹‘‘–Š‡•…‘’‡‘ˆ‡…–‹‘ͳͳͷ of the
…–Ǥ‘—”˜‹‡™™‹‹‰•ˆ”‘Ž‘––‡”‹‡•‹•ƒ••‡••ƒ„Ž‡—†‡”–Š‹••’‡…‹ƒŽ’”‘˜‹•‹‘‹””‡•’‡…–‹˜‡ƒ•–‘—†‡”™Šƒ–
head winnings from lottery falls. Therefore, assuming for argument sake the contention of the respondent that
winnings from lotteries is received by him in the course of his business and is incidental to business and so it is
his business income is right. Still, we feel in view of the specific provision contained in ‡…–‹‘ͳͳͷ, the special
”ƒ–‡‘ˆ–ƒš‹•ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ƒŽŽ™‹‹‰•ˆ”‘Ž‘––‡”›ǤŠƒ–‹•’”‘˜‹†‡†‹–Š‡•ƒ‹†‡…–‹‘‹•–Šƒ–™Š‡”‡–Š‡–‘–ƒŽ
‹…‘‡‹…Ž—†‡•ƒ›‹…‘‡„›™ƒ›‘ˆ™‹‹‰•ˆ”‘Ž‘––‡”›‘”…”‘••™‘”†’—œœŽ‡‡–…ǡ–Š‡‹…‘‡–ƒš’ƒ›ƒ„Ž‡
•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆ͵ͲΨǤ‘–ƒŽ‹…‘‡—†‡”‡…–‹‘ʹȋͶͷȌ read with Section 5‘ˆ–Š‡…–‹…Ž—†‡•
‹…‘‡ˆ”‘ƒŽŽ•‘—”…‡•ƒ†‡…‡••ƒ”‹Ž›ƒŽŽ•—…Š‹…‘‡•ƒ”‡…‘’—–‡†—†‡”ϐ‹˜‡Š‡ƒ†•”‡ˆ‡””‡†–‘‹–‘ 
of ‡…–‹‘ ͳͶ ‘ˆ –Š‡ …–Ǥ  ‘–Š‡” ™‘”†• ‡˜‡ ƒˆ–‡” …‘’—–ƒ–‹‘ ‘ˆ ‹…‘‡ —†‡” ˜ƒ”‹‘—• Š‡ƒ†• ‘ˆ ‹…‘‡
referred to in ‡…–‹‘ͳͶ‹–‡”•‘ˆ•’‡…‹ˆ‹…’”‘˜‹•‹‘•‘ˆ–Š‡…–’”‘˜‹†‹‰ˆ‘”…‘’—–ƒ–‹‘‘ˆ‹…‘‡—†‡”
each head, Such of the incomes specifically covered by Chapter XII shall be identified, separated and should be
•—„Œ‡…– –‘ –ƒš ƒ– –Š‡ •’‡…‹ƒŽ ”ƒ–‡ ’”‘˜‹†‡† –Š‡”‡Ǥ ‘ǡ ‹ ‘—” ˜‹‡™ –Š‡ •’‡…‹ƒŽ ”ƒ–‡ ‘ˆ –ƒšǡ ‹Ǥ‡Ǥǡ ͵ͲΨ ’”‘˜‹†‡†
under ‡…–‹‘ͳͳͷ‘ˆ–Š‡…–‹•ƒ’’Ž‹…ƒ„Ž‡‡˜‡‹ˆ™‹‹‰ˆ”‘Ž‘––‡”›‹•‹–Š‡ƒ–—”‡‘ˆ„—•‹‡••‹…‘‡ƒ•
…Žƒ‹‡†„›–Š‡”‡•’‘†‡–Ǥ‡Š‘Ž†–Šƒ––Š‡”ƒ–‡’”‡•…”‹„‡†—†‡”‡…–‹‘ͳͳͷ is applicable for the winnings
from lottery received by the respondent assessee irrespective of whether it is an income incidental to business
or not.

LESSON ROUND-UP

Ȉ …‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”…‘‡Ǧ–ƒš…–ǡ™Š‹…Š†‘‡•‘–•’‡…‹ϐ‹…ƒŽŽ›ˆƒŽŽˆ‘”ƒ••‡••‡–—†‡”ƒ›‘ˆ–Š‡
heads discussed earlier, must be charged to tax as “income from other sources”.
Ȉ ‡…–‹‘ͷ͸ȋʹȌ•’‡…‹ϐ‹…ƒŽŽ›’”‘˜‹†‡•ˆ‘”–Š‡…‡”–ƒ‹‹–‡•‘ˆ‹…‘‡•ƒ•„‡‹‰…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡
Š‡ƒ†•—…Šƒ•‹˜‹†‡†ǡ‡›ƒ•—”ƒ…‡’‘Ž‹…›ǡ‹‹‰•ˆ”‘Ž‘––‡”‹‡•ǡ‘–”‹„—–‹‘–‘”‘˜‹†‡–ˆ—†ǡ
…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡ…‘‡ˆ”‘Š‹”‹‰ƒ…Š‹‡”›‡–…ǡ‹”‹‰‘—–‘ˆ„—‹Ž†‹‰ ™‹–Š
ƒ…Š‹‡”›ǡ ‘‡›
‹ˆ–•ǡ Šƒ”‡ ’”‡‹—• ‹ ‡š…‡•• ‘ˆ –Š‡ ˆƒ‹” ƒ”‡– ˜ƒŽ—‡ –‘ „‡ –”‡ƒ–‡† ƒ• ‹…‘‡ǡ
income by way of interest received on compensation.
Lesson 4 Ȉ Part V – Income from Other Sources 307

Ȉ Š‡‡–‹”‡‹…‘‡‘ˆ™‹‹‰•ǡ™‹–Š‘—–ƒ›‡š’‡†‹–—”‡‘”ƒŽŽ‘™ƒ…‡‘”†‡†—…–‹‘•—†‡”‡…–‹‘• ͺͲ
–‘ ͺͲǡ ™‹ŽŽ „‡ –ƒšƒ„Ž‡Ǥ ‘™‡˜‡”ǡ ‡š’‡•‡• ”‡Žƒ–‹‰ –‘ –Š‡ ƒ…–‹˜‹–› ‘ˆ ‘™‹‰ ƒ† ƒ‹–ƒ‹‹‰ ”ƒ…‡
Š‘”•‡•ƒ”‡ƒŽŽ‘™ƒ„Ž‡Ǥ —”–Š‡”ǡ•—…Š‹…‘‡‹•–ƒšƒ„Ž‡ƒ–ƒ•’‡…‹ƒŽ”ƒ–‡‘ˆ‹…‘‡Ǧ–ƒš‹Ǥ‡Ǥǡ͵ͲΨΪ •—”…Šƒ”‰‡
Ϊ…‡••̷ͶΨǤ
Ȉ †‹••‹„Ž‡ ‡†—…–‹‘•ǣ Š‡ ‹…‘‡ …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† Dz…‘‡ ˆ”‘ ‘–Š‡” •‘—”…‡•dz ‹• –Š‡
‹…‘‡ƒˆ–‡”ƒ‹‰–Š‡†‡†—…–‹‘••—…Šƒ•ǣ
(i) sum paid by way of commission or remuneration to a banker or any other person for the purpose
of realising interest / Dividend;
ȋ‹‹Ȍ †‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™ƒ„Ž‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘͵͸ȋͳȌȋ˜ƒȌǡ‹Ǥ‡Ǥǡ‹ˆ–Š‡‡’Ž‘›‡”
has credited the employee’s accounts in the respective funds;
ȋ‹‹‹Ȍ ƒ•—‡“—ƒŽ–‘͵͵ǦͳȀ͵Ψ‘ˆ–Š‡‹…‘‡‘”•ǤͳͷǡͲͲͲǡ™Š‹…Š‡˜‡”‹•Ž‡••ǡ‹•ƒŽŽ‘™ƒ„Ž‡ƒ•ƒ†‡†—…–‹‘
ˆ”‘ˆƒ‹Ž›’‡•‹‘Ǣȋ‘–ƒ’’Ž‹…ƒ„Ž‡‹•ƒ••‡••‡‡‘’–‡†—Ȁ•ͳͳͷȌǢ
ȋ‹˜Ȍ ƒ†‡†—…–‹‘‘ˆƒ•—‡“—ƒŽ–‘ͷͲΨ‘ˆˆ”‘–‡”‡•–‘…‘’‡•ƒ–‹‘‘”‡Šƒ…‡†…‘’‡•ƒ–‹‘ƒ†Ǣ
(v) any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly
and exclusively for the purpose of making or earning such income.
Ȉ ƒ†‹••‹„Ž‡†‡†—…–‹‘•ǣŠ‡ˆ‘ŽŽ‘™‹‰ƒ‘—–••ŠƒŽŽ‘–„‡†‡†—…–‡†‹…‘’—–‹‰‹…‘‡…Šƒ”‰‡ƒ„Ž‡
—†‡”–Š‡Š‡ƒ†Ǯ…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǯǣ
ȋ‹Ȍ ›’‡”•‘ƒŽ‡š’‡•‡•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
ȋ‹‹Ȍ ›‹–‡”‡•–…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡…‘‡Ǧ–ƒš…–™Š‹…Š‹•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒƒ†ˆ”‘™Š‹…Š
‹…‘‡Ǧ–ƒšŠƒ•‘–„‡‡’ƒ‹†‘”†‡†—…–‡†ƒ–•‘—”…‡Ǥ
ȋ‹‹‹Ȍ ›’ƒ›‡–™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dz‹ˆ‹–‹•’ƒ›ƒ„Ž‡‘—–•‹†‡†‹ƒ—Ž‡••–ƒš
has been paid thereon or deducted therefrom at source.
ȋ‹˜Ȍ ›‡š’‡†‹–—”‡”‡ˆ‡””‡†–‘‹‡…–‹‘ͶͲ‘ˆ…‘‡Ǧ–ƒš…–Ǥ

TEST YOURSELF

(These are meant for recapitulation only. Answers to these questions are not to be submitted for evaluation.)
Multiple Choice Questions “MCQs”
ͳǤ ”Ǥ‡˜Šƒ•‡ƒ”‡†‹–‡”‡•–‘ˆ•ǤͳʹǡͲͲͲ—†‡”‘•–ˆϐ‹…‡ƒ˜‹‰•ƒ……‘—–ǤŠ‡‹…‘‡–ƒšƒ„Ž‡ƒ•
other sources is ?
ƒȌ •ǤͳʹͲͲͲ
„Ȍ —ŽŽ›š‡’–
…Ȍ •ǤͺǡͷͲͲ
†Ȍ •Ǥ͸ǡͲͲͲ
•™‡”ǣ…
ʹǤ ”ǤƒŒ”‡…‡‹˜‡†•ǤͺͲǡͲͲͲˆ”‘Š‹•ˆ”‹‡†•‘–Š‡‘……ƒ••‹‘‘ˆŠ‹•ƒ””‹ƒ‰‡ƒ‹˜‡”•ƒ”›Ǥƒšƒ„Ž‡‹…‘‡
from other sources is?
ƒȌ –‹”‡•ǤͺͲǡͲͲͲ‹•‡š‡’–
„Ȍ –‹”‡•ǤͺͲǡͲͲͲ‹•–ƒšƒ„Ž‡
308 Lesson 4 Ȉ EP-TL

…Ȍ ‘Ž›•Ǥ͵ͲǡͲͲͲ‹•–ƒšƒ„Ž‡
†Ȍ Ž›ͷͲΨǡ‹Ǥ‡Ǥ•ǤͶͲǡͲͲͲ
•™‡”ǣ„
͵Ǥ ƒ”‡…‡‹˜‡†ͺͲǡͲͲͲˆ”‘Š‹•„‡•–ˆ”‹‡†‘Š‹•„‹”–Š†ƒ›ǫ
ƒȌ ͺͲͲͲͲ‹•–ƒšƒ„Ž‡
„Ȍ ͵ͲͲͲͲ‹•–ƒšƒ„Ž‡
…Ȍ –‹”‡ƒ‘—–‹•‡š‡’–
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣƒ
ͶǤ ”Ǥƒ‰‡†͹ʹ›‡ƒ”•ǡ”‡…‡‹˜‡†ͳͷǡͲͲǡͲͲͲƒ•†‹˜‹†‡†ǡ‹ ʹͲʹͲǦʹͳǤŠ‡…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹•ǣ
ƒȌͳͷǡͲͲǡͲͲͲ
„ȌͷǡͲͲǡͲͲͲ
…Ȍ‹Ž
†Ȍ͹ͷͲͲͲͲ
•™‡”ǣƒ

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice
—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
—„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES (Including Websites and Video Links)

Ȉ Income Tax Act, 1961: Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š

Ȉ Income Tax Rules, 1962:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•Ǧͳͻ͸ʹǤƒ•’š
Ȉ Circulars:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϐ‹…ƒ–‹‘•Ǥƒ•’š
 Clubbing Provisions and Set Off
Lesson 5 and/ or Carry Forward of Losses

Key Concepts One Learning Objectives

Should Know
To understand
Ȉ Ž—„„‹‰
Ȉ Šƒ–‹•Ž—„„‹‰‘ˆ…‘‡
Ȉ ”ƒ•ˆ‡”
Ȉ ’’Ž‹…ƒ„‹Ž‹–›Ž—„„‹‰”‘˜‹•‹‘
Ȉ ‡˜‘…ƒ„Ž‡”ƒ•ˆ‡”
Ȉ Šƒ–‹•‡˜‘…ƒ„Ž‡”ƒ•ˆ‡”‘ˆ••‡–•ǫ
Ȉ —„•–ƒ–‹ƒŽ–‡”‡•–
Ȉ ”‘˜‹•‹‘•‘ˆ•‡–‘ˆˆȀ…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••‡•
Ȉ ’‡…—Žƒ–‹˜‡
Ȉ ”‘˜‹•‹‘ǡŠ‘™…ƒŽ‘••‡•„‡•‡–‘ˆˆ‹–‡”ǦŠ‡ƒ†ƒ†‹–”ƒǦŠ‡ƒ†
”ƒ•ƒ…–‹‘
Ȉ ‘†‹–‹‘•–‘„‡•ƒ–‹•ϐ‹‡†ˆ‘”…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••
ˆ”‘Š‘—•‡’”‘’‡”–›ǡ„—•‹‡••Ž‘••ƒ†—ƒ„•‘”„‡†
†‡’”‡…‹ƒ–‹‘Ǥ
Ȉ ‡–—”‘ˆ‘••

Lesson Outline
Ȉ Ž—„„‹‰‘ˆ…‘‡
Ȉ ”ƒ•ˆ‡”‘ˆ…‘‡
Ȉ ‡˜‘…ƒ„Ž‡”ƒ•ˆ‡”‘ˆ••‡–•
Ȉ …‘‡‘ˆ’‘—•‡
Ȉ …‘‡ˆ”‘••‡–•–”ƒ•ˆ‡”‡†–‘•‘ǯ•™‹ˆ‡
Ȉ ”ƒ•ˆ‡”ˆ‘”‹‡†‹ƒ–‡‘”†‡ˆ‡””‡†„‡‡ϐ‹–‘ˆ‘ǯ•‹ˆ‡
Ȉ …‘‡–‘’‘—•‡–Š”‘—‰ŠƒŠ‹”†‡”•‘
Ȉ Ž—„„‹‰‘ˆ‹…‘‡‘ˆ‹‘”Š‹Ž†
Ȉ …‘‡ˆ”‘–Š‡‘˜‡”–‡†”‘’‡”–›
Ȉ ‡…‘˜‡”›‘ˆƒš
Ȉ ‡–Ǧ‘ˆˆƒ†ƒ””›Ǧˆ‘”™ƒ”†‘ˆ‘••‡•
Ȉ ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••‡•
Ȉ ”‡ƒ–‡–‘ˆƒ””›Ǧˆ‘”™ƒ”†‘ˆŽ‘••‡•‘ˆ…‡”–ƒ‹ƒ••‡••‡‡•
Ȉ —„‹••‹‘‘ˆ‡–—”‘ˆ‘••
Ȉ —ƒ”›
Ȉ 
Ȉ 
Ȉ   

Ȉ  
310 Lesson 5 Ȉ EP-TL

Regulatory Framework

Sections Income Tax Act, 1961

‡…–‹‘͸Ͳ ”ƒ•ˆ‡”‘ˆ…‘‡

‡…–‹‘͸ͳ ‡˜‘…ƒ„Ž‡”ƒ•ˆ‡”‘ˆ••‡–•
‡…–‹‘͸ͶȋͳȌȋ‹‹Ȍ …‘‡–‘•’‘—•‡ˆ”‘ƒ…‘…‡”‹™Š‹…Š•—…Š‹†‹˜‹†—ƒŽŠƒ••—„•–ƒ–‹ƒŽ‹–‡”‡•–
‡…–‹‘͸ͶȋͳȌȋ‹˜Ȍ …‘‡–‘•’‘—•‡ˆ”‘–Š‡ƒ••‡–•–”ƒ•ˆ‡””‡†
‡…–‹‘͸ͶȋͳȌȋ˜‹Ȍ …‘‡ˆ”‘••‡–•–”ƒ•ˆ‡””‡†–‘‘̵•‹ˆ‡
‡…–‹‘͸ͶȋͳȌȋ˜‹‹‹Ȍ …‘‡ˆ‘”‹‡†‹ƒ–‡‘”†‡ˆ‡””‡†„‡‡ϐ‹–‘ˆ•‘̵•™‹ˆ‡
‡…–‹‘͸ͶȋͳȌȋ˜‹‹Ȍ …‘‡‘ˆ•’‘—•‡–Š”‘—‰Šƒ–Š‹”†’‡”•‘
‡…–‹‘͸ͶȋͳȌ Ž—„„‹‰‘ˆ…‘‡‘ˆ‹‘”Š‹Ž†
‡…–‹‘͸ͶȋʹȌ …‘‡ˆ”‘–Š‡‘˜‡”–‡†”‘’‡”–›
‡…–‹‘͹Ͳ ‡–Ǧˆˆ‘ˆ‘••‡•ˆ”‘‡‘—”…‡‰ƒ‹•–…‘‡ˆ”‘‘–Š‡”‘—”…‡—†‡”–Š‡
•ƒ‡‡ƒ†‘ˆ…‘‡
‡…–‹‘͹ͳ ‡–Ǧˆˆ‘ˆ‘••ˆ”‘‡‡ƒ†‰ƒ‹•–…‘‡ˆ”‘‘–Š‡”‡ƒ†
‡…–‹‘͹ʹ ‘••‹‘Ǧ’‡…—Žƒ–‹‘—•‹‡••
‡…–‹‘͹͵ ‘••‹’‡…—Žƒ–‹‘—•‹‡••
‡…–‹‘͹͵ ƒ””› ‘”™ƒ”†ƒ†‡–ˆˆ‘ˆ‘••‡•„›’‡…‹ϐ‹‡†—•‹‡••
‡…–‹‘͹Ͷ ‡–Ǧˆˆƒ†ƒ””› ‘”™ƒ”†‘ˆƒ’‹–ƒŽ‘••‡•
‡…–‹‘͹ͶȋȌ ‘••‘ƒ‹–‡ƒ…‡‘ˆƒ…‡‘”•‡•
‡…–‹‘͹ʹȋͳȌǡȋʹȌǡȋ͵Ȍ ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‹…ƒ•‡‘ˆ
ƒƒŽ‰ƒƒ–‹‘
‡…–‹‘͹ʹȋͶȌǡȋͷȌ ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••‡•ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‹…ƒ•‡
‘ˆ†‡‡”‰‡”
‡…–‹‘͹ʹȋ͸Ȍ ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••‡•ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‹…ƒ•‡‘ˆ
”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••
‡…–‹‘͹ʹ ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡
‹•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘‹…‡”–ƒ‹…ƒ•‡•
‡…–‹‘͹ͺ ƒ””›Ǧˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ‘ˆŽ‘••‡•‹…ƒ•‡‘ˆ…Šƒ‰‡‹…‘•–‹–—–‹‘‘ˆϐ‹”
‡…–‹‘͹ͻ ƒ””›Ǧˆ‘”™ƒ”† ƒ† •‡–Ǧ‘ˆˆ ‘ˆ Ž‘••‡• ‘ˆ …‘’ƒ‹‡• ‹ ™Š‹…Š –Š‡ ’—„Ž‹… ƒ”‡ ‘–
•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†
‡…–‹‘͹ͻȋ„Ȍ ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆŽ‘••‡•‹…ƒ•‡‘ˆ‡Ž‹‰‹„Ž‡•–ƒ”–Ǧ—’
‡…–‹‘ͺͲ —„‹••‹‘‘ˆ‡–—”‘ˆ‘••
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 311

CLUBBING OF INCOME

‘”ƒŽŽ›ǡƒ’‡”•‘‹•–ƒš‡†‹”‡•’‡…–‘ˆ‹…‘‡‡ƒ”‡†„›Š‹‘Ž›Ǥ‘™‡˜‡”ǡ‹…‡”–ƒ‹•’‡…‹ƒŽ…ƒ•‡•‹…‘‡ ‘ˆ

‘–Š‡”’‡”•‘‹•‹…Ž—†‡†ȋ‹Ǥ‡Ǥǡ…Ž—„„‡†Ȍ‹–Š‡–ƒšƒ„Ž‡‹…‘‡‘ˆ–Š‡–ƒš’ƒ›‡”ƒ†‹•—…Šƒ…ƒ•‡Š‡™‹ŽŽ„‡Ž‹ƒ„Ž‡
–‘’ƒ›–ƒš‹”‡•’‡…–‘ˆŠ‹•‹…‘‡ȋ‹ˆƒ›Ȍƒ•™‡ŽŽƒ•‹…‘‡‘ˆ‘–Š‡”’‡”•‘–‘‘ǤŠ‡•‹–—ƒ–‹‘‹™Š‹…Š ‹…‘‡
‘ˆ‘–Š‡”’‡”•‘‹•‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–ƒš’ƒ›‡”‹•…ƒŽŽ‡†ƒ•…Ž—„„‹‰‘ˆ‹…‘‡ǤǤ‰Ǥǡ…‘‡‘ˆ‹‘”…Š‹Ž†
‹•…Ž—„„‡†™‹–Š–Š‡‹…‘‡‘ˆŠ‹•ȀŠ‡”’ƒ”‡–Ǥ‡…–‹‘͸Ͳ–‘͸Ͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ…‘–ƒ‹•˜ƒ”‹‘—• ’”‘˜‹•‹‘•
”‡Žƒ–‹‰–‘…Ž—„„‹‰‘ˆ‹…‘‡Ǥ

Š‡ •’‡…‹ƒŽ ’”‘˜‹•‹‘• …‘–ƒ‹‡† ‹ –Š‡•‡ •‡…–‹‘• ƒ”‡ †‡•‹‰‡† –‘ …‘—–‡”ƒ…– –Š‡ ˜ƒ”‹‘—• ƒ––‡’–• ™Š‹…Š ƒ
‹†‹˜‹†—ƒŽ ƒ› ƒ‡ ˆ‘” ƒ˜‘‹†‹‰ ‘” ”‡†—…‹‰ Š‹• Ž‹ƒ„‹Ž‹–› –‘ –ƒš „› –”ƒ•ˆ‡””‹‰ Š‹• ƒ••‡–• ‘” ‹…‘‡ –‘ ‘–Š‡”
’‡”•‘ȋ•Ȍ ™Š‹Ž‡ǡ ƒ– –Š‡ •ƒ‡ –‹‡ǡ ”‡–ƒ‹‹‰ …‡”–ƒ‹ ’‘™‡”• ‘” ‹–‡”‡•– ‘˜‡” –Š‡ ’”‘’‡”–› ‘” ‹–ǯ• ‹…‘‡Ǥ Š‡•‡
’”‘˜‹•‹‘•ƒ”‡‡š’Žƒ‹‡†„‡Ž‘™Ǥ
TRANSFER OF INCOME [SECTION 60]
‡…–‹‘ ͸Ͳ ‘ˆ …‘‡ ƒš …–ǡ ͳͻ͸ͳ ’”‘˜‹†‡• –Š‡ ’”‘˜‹•‹‘• ”‡Žƒ–‹‰ –‘ …Ž—„„‹‰ ‘ˆ ‹…‘‡ ™Š‡”‡ –”ƒ•ˆ‡” ‘ˆ
‹…‘‡‹•†‘‡™‹–Š‘—––”ƒ•ˆ‡””‹‰–Š‡ƒ••‡–•ǤŠ‡”‡ƒ’‡”•‘–”ƒ•ˆ‡”•–‘ƒ›‘–Š‡”’‡”•‘ǡ‹…‘‡ȋ™Š‡–Š‡”
”‡˜‘…ƒ„Ž‡‘”‘–Ȍˆ”‘ƒƒ••‡–™‹–Š‘—––”ƒ•ˆ‡””‹‰–Šƒ–ƒ••‡–ǡ–Š‡‹…‘‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡ ‘ˆ
–Š‡–”ƒ•ˆ‡”‘”Ǥ
“Transfer”‹…Ž—†‡•ƒ›•‡––Ž‡‡–ǡ–”—•–ǡ…‘˜‡ƒ–ǡƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–ǤŠ‡–”ƒ•ˆ‡” ƒŽ•‘ ‹…Ž—†‡• ƒ
Ž‡ƒ•‡ˆ‘”‹ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ƒ†–Š‡‹…‘‡†‡”‹˜‡†„›–Š‡Ž‡••‡‡ˆ”‘–Š‡Ž‡ƒ•‡†’”‘’‡”–›‹•‹…Ž—†‡†
‹–Š‡‹…‘‡‘ˆ–Š‡Ž‡••‘”Ǥ

Š‡•‡ƒ”‡ƒ’’Ž‹…ƒ„Ž‡‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ

The ownership of
asset is not
transferred by him

The income from the

asset transferred to
The taxpayer any person under a
owns an asset settlement, or
agreement

Applicability
[Section 60]
 312 Lesson 5 Ȉ EP-TL

ˆ–Š‡ƒ„‘˜‡…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǡ–Š‡‹…‘‡ˆ”‘–Š‡ƒ••‡–™‘—Ž†„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥˆ–Š‡
–”ƒ•ˆ‡”‘”–”ƒ•ˆ‡”•–Š‡ƒ••‡–ƒ†‡‡’•–Š‡‹…‘‡ˆ‘”Š‹•‡Žˆǡ–Š‡‹…‘‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–”ƒ•ˆ‡”‘”Ǥ
‡…–‹‘͸Ͳ‘ˆ–Š‡…–Šƒ•‘ƒ’’Ž‹…ƒ–‹‘™Š‡”‡ƒ••‡–•’”‘†—…‹‰‹…‘‡ƒ”‡–”ƒ•ˆ‡””‡†ƒŽ‘‰™‹–Š–Š‡‹…‘‡C.I.T.
v. Ram Prasad Mehta ȋͳͻ͹ͷȌͳͲͲͶ͸ͺȋ‘„ƒ›ȌǤŠ‡”‡ƒ›„‡ƒϐ‹‡Ž†‘ˆ‘’‡”ƒ–‹‘‘ˆ‡…–‹‘•͸ͳ–‘ ͸Ͷ„—–
…‡”–ƒ‹Ž›‘–‘ˆ‡…–‹‘͸ͲǤ

Illustration 1:
‘™•‡„‡–—”‡•™‘”–Š•ͳǡͲͲͲǡͲͲͲ‘ˆ–†Ǥǡȋƒ—ƒŽȌ‹–‡”‡•–„‡‹‰•ǤͳͲͲǡͲͲͲǤ’”‹Ž ͳǡ ʹͲʹͳǡ Š‡
–”ƒ•ˆ‡”•‹–‡”‡•–‹…‘‡–‘ǡŠ‹•ˆ”‹‡†™‹–Š‘—––”ƒ•ˆ‡””‹‰–Š‡‘™‡”•Š‹’‘ˆ–Š‡•‡†‡„‡–—”‡•Ǥ
–Š‹•’ƒ”–‹…—Žƒ”…ƒ•‡†—”‹‰ʹͲʹͲǦʹͳǡ‹–‡”‡•–‘ˆ•ǤͳͲͲǡͲͲͲ‹•”‡…‡‹˜‡†„›Ǣ‹–™‹ŽŽ„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ 
ƒ•’‡”‡…–‹‘͸ͲǤ

Illustration 2:
”Ǥ‘™•‡„‡–—”‡•™‘”–Š•ͳǡͲͲͲǡͲͲͲ‘ˆ–†Ǥǡȋƒ—ƒŽȌ‹–‡”‡•–„‡‹‰•ǤͳͲͲǡͲͲͲǤ ’”‹ŽͳǡʹͲʹͳǡ
Š‡ –”ƒ•ˆ‡”• ‹–‡”‡•– ‹…‘‡ –‘ ”Ǥ ǡ Š‹• ˆ”‹‡† ™‹–Š‘—– –”ƒ•ˆ‡””‹‰ –Š‡ ‘™‡”•Š‹’ ‘ˆ –Š‡•‡ †‡„‡–—”‡•Ǥ
Ž–Š‘—‰Š†—”‹‰ʹͲʹͳǦʹʹǡ‹–‡”‡•–‘ˆ•ǤͳͲͲǡͲͲͲ‹•”‡…‡‹˜‡†„›”Ǥǡ‹–‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ ”Ǥƒ•’‡”
‡…–‹‘͸ͲǤ

REVOCABLE TRANSFER OF ASSETS [SECTION 61]

‘Revocable transfer’‡ƒ•–Š‡–”ƒ•ˆ‡”‘”‘ˆƒ••‡–ƒ••—‡•ƒ”‹‰Š––‘”‡Ǧƒ…“—‹”‡ƒ••‡–‘”‹…‘‡ˆ”‘•—…Šƒ
ƒ••‡–ǡ‡‹–Š‡”™Š‘Ž‡‘”‹’ƒ”–•ƒ–ƒ›–‹‡‹ˆ—–—”‡ǡ†—”‹‰–Š‡Ž‹ˆ‡–‹‡‘ˆ–”ƒ•ˆ‡”‡‡Ǥ–ƒŽ•‘‹…Ž—†‡•ƒ–”ƒ•ˆ‡”
™Š‹…Š‰‹˜‡•ƒ”‹‰Š––‘”‡Ǧƒ••—‡’‘™‡”‘ˆ–Š‡‹…‘‡ˆ”‘ƒ••‡–‘”ƒ••‡–†—”‹‰–Š‡Ž‹ˆ‡–‹‡‘ˆ–”ƒ•ˆ‡”‡‡Ǥ

Š‡”‡ƒ’‡”•‘–”ƒ•ˆ‡”•ƒ›ƒ••‡––‘ƒ›’‡”•‘™‹–Šƒ”‹‰Š––‘”‡˜‘‡–Š‡–”ƒ•ˆ‡”ǡƒŽŽ‹…‘‡ƒ……”—‹‰–‘–Š‡
–”ƒ•ˆ‡”‡‡ˆ”‘–Š‡ƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”ǤŠ‡‹…‘‡—†‡””‡˜‘…ƒ„Ž‡–”ƒ•ˆ‡”
‘ˆƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–”ƒ•ˆ‡”‘”‡˜‡™Š‡‘Ž›ƒ’ƒ”–‘ˆ‹…‘‡ˆ”‘–”ƒ•ˆ‡””‡†ƒ••‡–Šƒ•
„‡‡ƒ’’Ž‹‡†ˆ‘”–Š‡–”ƒ•ˆ‡”‘”Ǥ
‘”–Š‹•’—”’‘•‡ǡƒ••‡–•‹…Ž—†‡‘˜ƒ„Ž‡‘”‹‘˜ƒ„Ž‡’”‘’‡”–›™Š‡–Š‡”•‹–—ƒ–‡†‹†‹ƒ‘”ƒ„”‘ƒ†Ǥ
•’‡”‡…–‹‘͸͵ǡƒ–”ƒ•ˆ‡”•ŠƒŽŽ„‡†‡‡‡†–‘„‡”‡˜‘…ƒ„Ž‡‹ˆǣ
ȋ‹Ȍ ‹–…‘–ƒ‹•ƒ›’”‘˜‹•‹‘ˆ‘”–Š‡”‡Ǧ–”ƒ•ˆ‡”†‹”‡…–Ž›‘”‹†‹”‡…–Ž›‘ˆ–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡‹…‘‡‘”
ƒ••‡–•–‘–Š‡–”ƒ•ˆ‡”‘”Ǣ‘”
ȋ‹Ȍ‹–ǡ‹ƒ›™ƒ›ǡ‰‹˜‡•–Š‡–”ƒ•ˆ‡”‘”ƒ”‹‰Š––‘”‡ƒ••—‡’‘™‡”†‹”‡…–Ž›ǡ‘”‹†‹”‡…–Ž›‘˜‡”–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–
‘ˆ–Š‡‹…‘‡‘”ƒ••‡–•Ǥ
Examples of revocable transfers
‘‡‘ˆ–Š‡‡šƒ’Ž‡•‘ˆ”‡˜‘…ƒ„Ž‡–”ƒ•ˆ‡”•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ
ȋ‹Ȍ ˆ–Š‡”‡‹•ƒ‡š’”‡••…Žƒ—•‡‘ˆ”‡˜‘…ƒ–‹‘‹–Š‡‹•–”—‡–‘ˆ–”ƒ•ˆ‡”Ǣ‘”
ȋ‹‹Ȍ ˆ–Š‡”‡‹•ƒ•ƒŽ‡™‹–Šƒ…‘†‹–‹‘‘ˆ”‡Ǧ’—”…Šƒ•‡Ǣ‘”
ȋ‹‹‹Ȍ ˆ–Š‡–”ƒ•ˆ‡”‹•–‘ƒ–”—•–ƒ†‹ˆ–Š‡–”ƒ•ˆ‡”…ƒ„‡”‡˜‘‡†™‹–Š–Š‡…‘•‡–‘ˆ–™‘‘”‘”‡„‡‡ϐ‹…‹ƒ”‹‡•Ǣ‘”
ȋ‹˜Ȍ ˆ–Š‡–”—•–‡‡•ƒ”‡‡’‘™‡”‡†‹•‘Ž‡†‹•…”‡–‹‘–‘”‡˜‘‡–Š‡–”ƒ•ˆ‡”Ǣ‘”
ȋ˜Ȍ ˆ–Š‡–”ƒ•ˆ‡”‘”Šƒ•’‘™‡”–‘…Šƒ‰‡„‡‡ϐ‹…‹ƒ”›‘”–”—•–‡‡•Ǥ
Dz”ƒ•ˆ‡”dz‹…Ž—†‡•ƒ›•‡––Ž‡‡–ǡ–”—•–ǡ…‘˜‡ƒ–ǡƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–Ǥ
Noteǣ‡Ǧ–”ƒ•ˆ‡”–‘–Š‡–”ƒ•ˆ‡”‘”—•–„‡‹–Š‡•ƒ‡…ƒ’ƒ…‹–›‹™Š‹…ŠŠ‡ƒ†‡–Š‡–”ƒ•ˆ‡”‘”•‡––Ž‡‡–Ǥˆ ƒ
•‡––Ž‡‡– ‹• ƒ†‡ „› ƒ ‹†— —†‹˜‹†‡† ˆƒ‹Ž› ƒ† –Š‡”‡ ‹• ƒ ”‡Ǧ–”ƒ•ˆ‡” –‘ ‘‡ ‡„‡” ‘ˆ –Š‡ ˆƒ‹Ž› ‹ Š‹•
…ƒ’ƒ…‹–›ƒ•ƒ‹†‹˜‹†—ƒŽƒ†‘–‹Š‹•…ƒ’ƒ…‹–›ƒ•ƒ‡„‡”‘ˆ–Š‡ˆƒ‹Ž›–Š‹•…ƒ‘–„‡–‡”‡†ƒ”‡Ǧ–”ƒ•ˆ‡” ˆ‘”
–Š‹•’—”’‘•‡Ǥ
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 313

INCOME OF SPOUSE
Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡•‘ˆ–Š‡•’‘—•‡‘ˆƒ‹†‹˜‹†—ƒŽ•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǣ

…‘‡–‘•’‘—•‡ˆ”‘ƒ…‘…‡”‹™Š‹…Š•—…Š‹†‹˜‹†—ƒŽŠƒ••—„•–ƒ–‹ƒŽ‹–‡”‡•–ȏ‡…–‹‘͸ͶȋͳȌȋ‹‹ȌȐ

…‘‡–‘•’‘—•‡ˆ”‘–Š‡ƒ••‡–•–”ƒ•ˆ‡””‡†ȏ‡…–‹‘͸ͶȋͳȌȋ‹˜ȌȐ

(a) Income to spouse from a concern in which such individual has substantial interest [Section 64(1)(ii)]
 ŽŽ•—…Š‹…‘‡ƒ•ƒ”‹•‡•†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ–‘–Š‡•’‘—•‡‘ˆƒ‹†‹˜‹†—ƒŽ„›™ƒ›‘ˆ•ƒŽƒ”›ǡ…‘‹••‹‘ǡ
ˆ‡‡• ‘” ƒ› ‘–Š‡” ”‡—‡”ƒ–‹‘ǡ ™Š‡–Š‡” ‹ …ƒ•Š ‘” ‹† ˆ”‘ ƒ …‘…‡” ‹ ™Š‹…Š •—…Š ‹†‹˜‹†—ƒŽ Šƒ• ƒ
•—„•–ƒ–‹ƒŽ‹–‡”‡•–ǡ•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǤ
Exceptionǣ‘™‡˜‡”ǡ™Š‡”‡–Š‡•’‘—•‡’‘••‡••‡•–‡…Š‹…ƒŽ‘”’”‘ˆ‡••‹‘ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘•ƒ†–Š‡‹…‘‡‹••‘Ž‡Ž›
ƒ––”‹„—–ƒ„Ž‡–‘–Š‡ƒ’’Ž‹…ƒ–‹‘‘ˆŠ‹•ȀŠ‡”–‡…Š‹…ƒŽ‘”’”‘ˆ‡••‹‘ƒŽ‘™Ž‡†‰‡ƒ†‡š’‡”‹‡…‡ǡ–Š‡‹…‘‡•ŠƒŽŽ‘–
„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆȋ‘–Š‡”•’‘—•‡Ȍ–Š‡ƒ••‡••‡‡Ǥ

Substantial Interestǣ‹†‹˜‹†—ƒŽ•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–‹ƒ…‘…‡”Ǧ
ȋ‹Ȍ  ƒ …ƒ•‡ ™Š‡”‡ –Š‡ …‘…‡” ‹• ƒ …‘’ƒ›ǡ ‹ˆ ‹–• •Šƒ”‡• ȋ‘– „‡‹‰ •Šƒ”‡• ‡–‹–Ž‡† –‘ ƒ ϐ‹š‡† ”ƒ–‡ ‘ˆ
†‹˜‹†‡†™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–ƒˆ—”–Š‡””‹‰Š––‘’ƒ”–‹…‹’ƒ–‡‹’”‘ϐ‹–•Ȍ…ƒ””›‹‰‘–Ž‡••–ŠƒʹͲΨ‘ˆ–Š‡
˜‘–‹‰’‘™‡”ƒ”‡ǡƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‘™‡†„‡‡ϐ‹…‹ƒŽŽ›„›•—…Š’‡”•‘‘”’ƒ”–Ž›„›
•—…Š’‡”•‘ƒ†’ƒ”–Ž›„›‘‡‘”‘”‡‘ˆŠ‹•”‡Žƒ–‹˜‡•Ǣ
ȋ‹‹Ȍ ƒ›‘–Š‡”…ƒ•‡ǡ‹ˆ•—…Š’‡”•‘‹•‡–‹–Ž‡†ǡ‘”•—…Š’‡”•‘ƒ†‘‡‘”‘”‡‘ˆŠ‹•”‡Žƒ–‹˜‡•ƒ”‡‡–‹–Ž‡† ‹ –Š‡
ƒ‰‰”‡‰ƒ–‡ǡ ƒ– ƒ› –‹‡ †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ”ǡ –‘ ‘– Ž‡•• –Šƒ ʹͲΨ ‘ˆ –Š‡ ’”‘ϐ‹–• ‘ˆ •—…Š …‘…‡”Ǥ

Illustration 3:
 Šƒ• ƒ •—„•–ƒ–‹ƒŽ ‹–‡”‡•– ‹–†Ǥ ƒ† ”•Ǥ  ‹• ‡’Ž‘›‡† „›–†Ǥ ™‹–Š‘—– ƒ› –‡…Š‹…ƒŽ ‘” ’”‘ˆ‡••‹‘ƒŽ
“—ƒŽ‹ϐ‹…ƒ–‹‘–‘Œ—•–‹ˆ›–Š‡”‡—‡”ƒ–‹‘Ǥ–Š‹•…ƒ•‡ǡ•ƒŽƒ”›‹…‘‡‘ˆ”•Ǥ•ŠƒŽŽ„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆǤ

When both husband and wife have substantial interest

Š‡”‡ „‘–Š Š—•„ƒ† ƒ† ™‹ˆ‡ Šƒ˜‡ ƒ •—„•–ƒ–‹ƒŽ ‹–‡”‡•– ‹ –Š‡ …‘…‡” ƒ† „‘–Š ƒ”‡ ‹ ”‡…‡‹’– ‘ˆ –Š‡
”‡—‡”ƒ–‹‘‹•—…Š…‘…‡”ǡ–Š‡”‡—‡”ƒ–‹‘ˆ”‘•—…Š…‘…‡”‹•–‘„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ ‹…‘‡‘ˆ–Š‡
Š—•„ƒ†‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡™‹ˆ‡™Š‘•‡–‘–ƒŽ‹…‘‡‡š…Ž—†‹‰–Š‡‹…‘‡”‡ˆ‡””‡†–‘‹–Šƒ–…Žƒ—•‡ǡ‹Ǥ‡Ǥǡ
͸ͶȋͳȌȋ‹‹Ȍ ‹• ‰”‡ƒ–‡”Ǣ ƒ† ™Š‡”‡ ƒ› •—…Š ‹…‘‡ ‹• ‘…‡ ‹…Ž—†‡† ‹ –Š‡ –‘–ƒŽ‹…‘‡ ‘ˆ ‡‹–Š‡” •’‘—•‡ǡ ƒ› •—…Š
‹…‘‡ ƒ”‹•‹‰ ‹ ƒ› •—……‡‡†‹‰ ›‡ƒ” •ŠƒŽŽ ‘– „‡ ‹…Ž—†‡† ‹ –Š‡ –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ ‘–Š‡” •’‘—•‡ —Ž‡•• –Š‡
••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡƒˆ–‡”‰‹˜‹‰–Šƒ–•’‘—•‡ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ǡ–Šƒ–‹–‹•‡…‡••ƒ”›•‘–‘†‘Ǥ

Illustration 4:
”Ǥ‹•‡’Ž‘›‡†ƒ•—„Ž‹…‡Žƒ–‹‘ˆϐ‹…‡”‹ƒ…‘’ƒ›™Š‡”‡”•ǤŠ‘Ž†•ʹͳ’‡”…‡–‡“—‹–›•Šƒ”‡•ǤŠ‡Šƒ•
„‡‡Š‘Ž†‹‰–Š‡•Šƒ”‡„‡ˆ‘”‡ƒ””‹ƒ‰‡™‹–Š”ǤǤǡ”Ǥ‰‡–•ƒ•ƒŽƒ”›‘ˆ•ǤͳǡͷͲͲ’‡”‘–ŠǤ
Š‡ ™Š‘Ž‡ •ƒŽƒ”› ‘ˆ •Ǥ ͳͺǡͲͲͲ ™‹ŽŽ „‡ ‹…Ž—†‡† ‹ –Š‡ ‹…‘‡ ‘ˆ ”•Ǥ  ’”‘˜‹†‡† ”Ǥ  Šƒ• ‘ –‡…Š‹…ƒŽ ‘”
’”‘ˆ‡••‹‘ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘Ǥ–‹•‹ƒ–‡”‹ƒŽ–Šƒ––Š‡”‡—‡”ƒ–‹‘•‘’ƒ‹†‹•‰‡—‹‡ƒ†‘–‡š…‡••‹˜‡ƒ†–Šƒ–
”•ǤŠƒ†•—„•–ƒ–‹ƒŽ‹–‡”‡•–‹–Š‡…‘’ƒ›‡˜‡„‡ˆ‘”‡Š‡”ƒ””‹ƒ‰‡Ǥ

(b) Income to spouse from the assets transferred [Section 64(1)(iv)]

 Š‡”‡ƒ›‹†‹˜‹†—ƒŽ–”ƒ•ˆ‡”•†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ƒ›ƒ••‡–ȋ‘–Š‡”–ŠƒƒŠ‘—•‡’”‘’‡”–›Ȍ–‘–Š‡•’‘—•‡ǡ
–Š‡ ‹…‘‡ˆ”‘•—…Šƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
 ‘”†‡”–‘ƒ––”ƒ…––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ǡ‹–‹•‘–‡…‡••ƒ”›–Šƒ––Š‡ƒ••‡–—•–Šƒ˜‡„‡‡–”ƒ•ˆ‡””‡†
„›–Š‡ƒ••‡••‡‡–‘Š‹••’‘—•‡‹–Š‡•ƒ‡ˆ‘”‹™Š‹…Š‹–•–ƒ†•ƒ––Š‡–‹‡–Š‡‹…‘‡ƒ”‹•‡•Ǥ‘˜‡”•‹‘
 314 Lesson 5 Ȉ EP-TL

‘ˆƒ••‡–•ˆ”‘‘‡ˆ‘”–‘ƒ‘–Š‡”™‘—Ž†„‡–‘–ƒŽŽ›‹ƒ–‡”‹ƒŽƒ†‹–‹•ƒŽ•‘‘–‡••‡–‹ƒŽ–Šƒ––Š‡–”ƒ•ˆ‡”
—•–Šƒ˜‡–ƒ‡’Žƒ…‡†‹”‡…–Ž›„‡–™‡‡–Š‡•’‘—•‡•Ǥ
Exceptionǣ‘™‡˜‡”ǡ–Š‡”‡ƒ”‡‡š…‡’–‹‘•–‘–Š‹•”—Ž‡ǣ
ȋ‹Ȍ Š‡–”ƒ•ˆ‡”‘”Šƒ•”‡…‡‹˜‡†ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘‹‘‡›‘”‘‡›ǯ•™‘”–ŠǤˆ–Š‡…‘•‹†‡”ƒ–‹‘™ƒ•
‹ƒ†‡“—ƒ–‡ǡ’”‘’‘”–‹‘ƒ–‡‹…‘‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
ȋ‹‹Ȍ Š‡–”ƒ•ˆ‡”Šƒ•„‡‡ƒ†‡‹…‘‡…–‹‘™‹–Šƒƒ‰”‡‡‡––‘Ž‹˜‡ƒ’ƒ”–ǤŠ‹••‡’ƒ”ƒ–‹‘…ƒ„‡‡‹–Š‡”
Œ—†‹…‹ƒŽ‘”˜‘Ž—–ƒ”›—†‡”…‹”…—•–ƒ…‡•‹™Š‹…ŠƒŒ—†‹…‹ƒŽ•‡’ƒ”ƒ–‹‘…ƒ„‡‰”ƒ–‡†Ǥ
ȋ‹‹‹Ȍ Š‡‹…‘‡ˆ”‘–Š‡ƒ••‡–•–”ƒ•ˆ‡””‡†•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–”ƒ•ˆ‡”‘”ƒˆ–‡”–Š‡†‡ƒ–Š‘ˆ
•’‘—•‡ǡ‡‹–Š‡”–”ƒ•ˆ‡”‘”‘”–”ƒ•ˆ‡”‡‡Ǥ
ȋ‹˜Ȍ Š‡‹…‘‡ˆ”‘ƒ••‡–•–”ƒ•ˆ‡””‡†•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”ǡ‘Ž›‹ˆ–Š‡”‡Žƒ–‹‘•Š‹’
ƒ••’‘—•‡‡š‹•–•‘–Š‡–™‘†ƒ–‡•ǡ‹Ǥ‡Ǥǡ–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ƒ†–Š‡†ƒ–‡‘™Š‹…Š–Š‡‹…‘‡ƒ……”—‡•‘”ƒ”‹•‡•
–‘–Š‡–”ƒ•ˆ‡”‡‡Ǥˆƒ›ƒ••‡–Šƒ•„‡‡–”ƒ•ˆ‡””‡†„‡ˆ‘”‡ƒ””‹ƒ‰‡ǡ–Š‡‹…‘‡ˆ”‘•—…Šƒ••‡–…ƒ‘–„‡
‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
ȋ˜Ȍ Ž› –Š‡ †‹”‡…– ‹…‘‡ ȋ‹…Ž—†‹‰ …ƒ’‹–ƒŽ ‰ƒ‹•Ȍ ‡ƒ”‡† ™‹–Š –Š‡ Š‡Ž’ ‘ˆ –Š‡ –”ƒ•ˆ‡””‡† ƒ••‡–• •ŠƒŽŽ „‡
‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ›‹†‹”‡…–‹…‘‡–‘–Š‡–”ƒ•ˆ‡”‡‡ˆ”‘–Š‡–”ƒ•ˆ‡””‡†ƒ••‡–•
•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Supposeǡ–”ƒ•ˆ‡”•…‡”–ƒ‹•Šƒ”‡•–‘Š‹•™‹ˆ‡Ǥ‹˜‹†‡†•”‡…‡‹˜‡†‘•—…Š•Šƒ”‡•ƒ”‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆǤ
ˆ•‡ŽŽ•–Š‡•Šƒ”‡•ƒ†ƒ‡••‘‡…ƒ’‹–ƒŽ‰ƒ‹•ǡ•—…Š‰ƒ‹•ƒ”‡ƒŽ•‘–ƒšƒ„Ž‡‹ǯ•Šƒ†•Ǥ‘™ˆ”‘–Š‡†‹˜‹†‡†
‘‡›ǡ’—”…Šƒ•‡••‘‡‘”‡•Šƒ”‡•ƒ†”‡…‡‹˜‡•†‹˜‹†‡†•‘–Š‡•‡‡™•Šƒ”‡•ǡ•—…Š†‹˜‹†‡†•ƒ”‡‘––ƒšƒ„Ž‡
–‘Ǥ–Š‡•ƒ‡™ƒ›ǡ‹ˆ”‡…‡‹˜‡•…‡”–ƒ‹„‘—••Šƒ”‡•‘–Š‡•Šƒ”‡•–”ƒ•ˆ‡””‡†„›Š‡”Š—•„ƒ†ƒ†Žƒ–‡”‘•Š‡
”‡…‡‹˜‡•†‹˜‹†‡†‘•—…Š„‘—••Šƒ”‡•ǡ–Š‡†‹˜‹†‡†•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”„‡…ƒ—•‡
–Š‡„‘—••Šƒ”‡•™‡”‡‡˜‡”–”ƒ•ˆ‡””‡†„›Š‡”Š—•„ƒ†Ǥ
ˆ•‘‡’‹Ǧ‘‡›‹•‰‹˜‡–‘™‹ˆ‡„›Š‡”Š—•„ƒ†‡‹–Š‡”–Š‡•ƒ˜‹‰•‘—–‘ˆ’‹Ǧ‘‡›‘”–Š‡‹…‘‡‡ƒ”‡†™‹–Š
–Š‡Š‡Ž’‘ˆ•ƒ˜‹‰•‘—–‘ˆ’‹Ǧ‘‡›…ƒ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆŠ—•„ƒ†Ǥ

Illustration 5:
 –”ƒ•ˆ‡”• ͷͲͲ †‡„‡–—”‡• ‘ˆ   –‘ Š‹• ™‹ˆ‡ ™‹–Š‘—– ƒ†‡“—ƒ–‡ …‘•‹†‡”ƒ–‹‘Ǥ –‡”‡•– ‹…‘‡ ‘ –Š‡•‡
†‡„‡–—”‡•™‹ŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆǤ

INCOME FROM ASSETS TRANSFERRED TO SON’S WIFE [SECTION 64(1)(vi)]

 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 315

TRANSFER FOR IMMEDIATE OR DEFERRED BENEFIT OF SON’S WIFE [SECTION 64(1)(viii)]

›‹…‘‡ƒ”‹•‹‰ǡ†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ–‘ƒ›’‡”•‘‘”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ˆ”‘ƒ••‡–•–”ƒ•ˆ‡””‡††‹”‡…–Ž›
‘”‹†‹”‡…–Ž›ƒˆ–‡” —‡ͳǡͳͻ͹͵ǡ‘–Š‡”™‹•‡–Šƒˆ‘”ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘–‘–Š‡’‡”•‘‘”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•
„›•—…Š‹†‹˜‹†—ƒŽ•ŠƒŽŽǡ–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡‹…‘‡ˆ”‘•—…Šƒ••‡–•‹•ˆ‘”–Š‡‹‡†‹ƒ–‡‘”†‡ˆ‡””‡†„‡‡ϐ‹–
‘ˆŠ‹••‘ǯ•™‹ˆ‡„‡‹…Ž—†‡†‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆ•—…Š‹†‹˜‹†—ƒŽǤ
Explanation: ‘” –Š‡ ’—”’‘•‡ ‘ˆ …Žƒ—•‡• ȋ‹˜Ȍ ƒ† ȋ˜‹Ȍǡ ™Š‡”‡ –Š‡ ƒ••‡–• –”ƒ•ˆ‡””‡† †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž› „› ƒ
‹†‹˜‹†—ƒŽ–‘Š‹••’‘—•‡‘”•‘ǯ•™‹ˆ‡ȋŠ‡”‡ƒˆ–‡”‹–Š‹•š’Žƒƒ–‹‘”‡ˆ‡””‡†–‘ƒ•Dz–Š‡–”ƒ•ˆ‡”‡‡dzȌƒ”‡‹˜‡•–‡†„›
–Š‡–”ƒ•ˆ‡”‡‡Ǧ
ȋ‹Ȍ ‹ƒ›„—•‹‡••ǡ•—…Š‹˜‡•–‡–„‡‹‰‘–‹–Š‡ƒ–—”‡‘ˆ…‘–”‹„—–‹‘‘ˆ…ƒ’‹–ƒŽƒ•ƒ’ƒ”–‡”‹ƒϐ‹”‘”ǡƒ•
–Š‡…ƒ•‡ƒ›„‡ǡˆ‘”„‡‹‰ƒ†‹––‡†–‘–Š‡„‡‡ϐ‹–‘ˆ’ƒ”–‡”•Š‹’‹ƒϐ‹”–Šƒ–’ƒ”–‘ˆ–Š‡‹…‘‡ƒ”‹•‹‰‘—–
‘ˆ–Š‡„—•‹‡••–‘–Š‡–”ƒ•ˆ‡”‡‡‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ™Š‹…Š„‡ƒ”•–Š‡•ƒ‡’”‘’‘”–‹‘–‘–Š‡‹…‘‡‘ˆ–Š‡
–”ƒ•ˆ‡”‡‡ˆ”‘–Š‡„—•‹‡••ƒ•–Š‡˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–•ƒˆ‘”‡•ƒ‹†ƒ•‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”„‡ƒ”•
–‘–Š‡–‘–ƒŽ‹˜‡•–‡–‹–Š‡„—•‹‡••„›–Š‡–”ƒ•ˆ‡”‡‡ƒ•‘–Š‡•ƒ‹††ƒ›Ǣ
ȋ‹‹Ȍ ‹ –Š‡ ƒ–—”‡ ‘ˆ …‘–”‹„—–‹‘ ‘ˆ …ƒ’‹–ƒŽ ƒ• ƒ ’ƒ”–‡” ‹ ƒ ϐ‹”ǡ –Šƒ– ’ƒ”– ‘ˆ –Š‡ ‹–‡”‡•– ”‡…‡‹˜ƒ„Ž‡ „› –Š‡
–”ƒ•ˆ‡”‡‡ˆ”‘–Š‡ϐ‹”‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ™Š‹…Š„‡ƒ”•–Š‡•ƒ‡’”‘’‘”–‹‘–‘–Š‡‹–‡”‡•–”‡…‡‹˜ƒ„Ž‡„›
–Š‡–”ƒ•ˆ‡”‡‡ˆ”‘–Š‡ϐ‹”ƒ•–Š‡˜ƒŽ—‡‘ˆ‹˜‡•–‡–ƒˆ‘”‡•ƒ‹†ƒ•‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”„‡ƒ”•
–‘–Š‡–‘–ƒŽ‹˜‡•–‡–„›™ƒ›‘ˆ…ƒ’‹–ƒŽ…‘–”‹„—–‹‘ƒ•ƒ’ƒ”–‡”‹–Š‡ϐ‹”ƒ•‘–Š‡•ƒ‹††ƒ›ǡ
•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽ‹–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
INCOME TO SPOUSE THROUGH A THIRD PERSON [SECTION 64(1)(vii)]
Š‡”‡ƒ’‡”•‘–”ƒ•ˆ‡”••‘‡ƒ••‡–•†‹”‡…–Ž›‘”‹†‹”‡…–Ž›–‘ƒ’‡”•‘‘”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ȋ–”—•–‡‡‘”„‘†›
‘ˆ–”—•–‡‡•‘”Œ—”‹•–‹…’‡”•‘Ȍ™‹–Š‘—–ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡‹‡†‹ƒ–‡‘”†‡ˆ‡””‡†„‡‡ϐ‹–‘ˆŠ‹•‘”Š‡”
•’‘—•‡ǡƒŽŽ•—…Š‹…‘‡ƒ•ƒ”‹•‡•†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ˆ”‘ƒ••‡–•–”ƒ•ˆ‡””‡†•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡
–”ƒ•ˆ‡”‘”Ǥˆ‘Ž›ƒ’‘”–‹‘‹•”‡•‡”˜‡†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆ•’‘—•‡ƒ†ƒ’‘”–‹‘‹•—–‹Ž‹•‡†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆ‘–Š‡”•ǡ
‘Ž›–Š‡’‘”–‹‘”‡•‡”˜‡†ˆ‘”–Š‡•’‘—•‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Š‡•Šƒ”‡‘ˆ‹…‘‡‘ˆ–Š‡•’‘—•‡…ƒ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”’”‘˜‹†‡†–Š‡•’‘—•‡Šƒ•‡‹–Š‡”
”‡…‡‹˜‡†–Š‡‹…‘‡‘”–Š‡‹…‘‡Šƒ•ƒ……”—‡†–‘•’‘—•‡‘”–Š‡•’‘—•‡Šƒ•ƒ„‡‡ϐ‹…‹ƒŽ‹–‡”‡•–‹–Š‡‹…‘‡Ǥˆƒ
‹†‹˜‹†—ƒŽ…”‡ƒ–‡•ƒŽ‹ˆ‡Ǧ‹–‡”‡•–‹ƒ’”‘’‡”–›‹ˆƒ˜‘—”‘ˆƒ–Š‹”†’‡”•‘ƒ†‰”ƒ–•–Š‡”‡ƒ‹†‡”–‘Š‹••’‘—•‡ǡƒ†
•‘ Ž‘‰ ƒ• –Š‡ –Š‹”† ’‡”•‘ ‹• ƒŽ‹˜‡ǡ •Š‡ •Š‘—Ž† ‘– „‡ ‰‡––‹‰ ƒ› „‡‡ϐ‹– ‘—– ‘ˆ –”ƒ•ˆ‡””‡† ƒ••‡–ǡ •—…Š ‹…‘‡
…ƒ‘– „‡ ‹…Ž—†‡† ‹ –Š‡ ‹…‘‡ ‘ˆ –Š‡ –”ƒ•ˆ‡”‘”Ǥ ˆ Š‘™‡˜‡”ǡ –Š‡ „‡‡ϐ‹– ˆ”‘ –Š‡ ƒ••‡–• –”ƒ•ˆ‡””‡† ‹• –‘ „‡
†‡”‹˜‡†„›–Š‡–”ƒ•ˆ‡”‘”Š‹•‡Žˆǡ–Š‡–”ƒ•ˆ‡”™‘—Ž†„‡–”‡ƒ–‡†ƒ•”‡˜‘…ƒ„Ž‡ƒ†™‘—Ž†…‘•‡“—‡–Ž›ˆƒŽŽ™‹–Š‹–Š‡
’—”˜‹‡™‘ˆ‡…–‹‘͸ͳ™Š‹…Š’”‘˜‹†‡•–Šƒ––Š‡‡–‹”‡‹…‘‡ƒ”‹•‹‰ˆ”‘–Š‡ƒ••‡–••‘–”ƒ•ˆ‡””‡†•ŠƒŽŽ„‡‹…Ž—†‡†
‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Š‡”‡ ƒ –”—•– ™ƒ• …”‡ƒ–‡† „› ƒ••‡••‡‡ǯ• ‘–Š‡” ˆ‘” –Š‡ „‡‡ϐ‹– ‘ˆ –Š‡ ƒ••‡••‡‡ǡ Š‹• ™‹ˆ‡ ƒ† –Š‡ –”—•–‡‡• ™‡”‡
ƒ—–Š‘”‹•‡†–‘…ƒ””›‘„—•‹‡••ǡ–Š‡‹…‘‡ˆ”‘–Š‡„—•‹‡••™ƒ•Š‡Ž†–‘„‡‹…‘‡‘ˆ–Š‡–”—•–ƒ†–Š‡•Šƒ”‡‘ˆ
™‹ˆ‡…‘—Ž†‘–„‡ƒ††‡†–‘–Š‡‹…‘‡‘ˆ–Š‡•’‘—•‡„‡…ƒ—•‡‡‹–Š‡”–Š‡–”—•–™ƒ•…”‡ƒ–‡†„›–Š‡ƒ••‡••‡‡‘”–Š‡
„—•‹‡••†‘‡‹–Š‡’ƒ”–‡”•Š‹’ǤȏK.T Doctor v. C.I.T (1980) 124 ITR 501 (Guj.)ȐǤ
CLUBBING OF INCOME OF MINOR CHILD [SECTION 64(1A)]
ŽŽ‹…‘‡™Š‹…Šƒ”‹•‡•‘”ƒ……”—‡•–‘–Š‡‹‘”…Š‹Ž†ȋ‘–„‡‹‰ƒ‹‘”…Š‹Ž†•—ˆˆ‡”‹‰ˆ”‘ƒ›†‹•ƒ„‹Ž‹–›‘ˆ–Š‡
ƒ–—”‡•’‡…‹ϐ‹‡†‹‡…–‹‘ͺͲȌ•ŠƒŽŽ„‡…Ž—„„‡†‹–Š‡‹…‘‡‘ˆŠ‹•’ƒ”‡–Ǥ‘™‡˜‡”ǡƒ›‹…‘‡™Š‹…Š‹•†‡”‹˜‡†
„›–Š‡‹‘”ˆ”‘ƒ—ƒŽ™‘”‘”ˆ”‘ƒ›ƒ…–‹˜‹–›‹˜‘Ž˜‹‰ƒ’’Ž‹…ƒ–‹‘‘ˆŠ‹••‹ŽŽǡ–ƒŽ‡–‘”•’‡…‹ƒŽ‹•‡†‘™Ž‡†‰‡
ƒ†‡š’‡”‹‡…‡™‹ŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆŠ‹•’ƒ”‡–Ǥ —”–Š‡”ǡ–Š‡‹…‘‡‘ˆ–Š‡‹‘”•ŠƒŽŽ„‡‹…Ž—†‡†
‹ –Š‡ ‹…‘‡ ‘ˆ –Šƒ– ’ƒ”‡– ™Š‘•‡ –‘–ƒŽ ‹…‘‡ ‡š…Ž—†‹‰ ‹…‘‡ ‹…Ž—†‹„Ž‡ —†‡” –Š‹• •—„Ǧ•‡…–‹‘ ‹• ‰”‡ƒ–‡”ǡ
™Š‡”‡–Š‡ƒ””‹ƒ‰‡‘ˆ‹‘”ǯ•’ƒ”‡–••—„•‹•–•ǡ‘–Š‡”™‹•‡–Š‡‹…‘‡‘ˆ–Š‡‹‘”™‹ŽŽ„‡‹…Ž—†‹„Ž‡‹–Š‡‹…‘‡
‘ˆ–Šƒ–’ƒ”‡–™Š‘ƒ‹–ƒ‹•–Š‡‹‘”…Š‹Ž†‹–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
…‡–Š‡‹…‘‡‘ˆ–Š‡‹‘”‹•‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›‘‡’ƒ”‡–ǡ…Ž—„„‹‰‘ˆ‹…‘‡‘ˆ–Š‡‹‘”™‹–Š
–Š‡•ƒ‡’ƒ”‡–™‹ŽŽ…‘–‹—‡‹•—„•‡“—‡–›‡ƒ”•ƒŽ•‘ǡ—Ž‡••–Š‡••‡••‹‰ ˆϐ‹…‡” ‹• •ƒ–‹•ϐ‹‡†ǡ ƒˆ–‡”‰‹˜‹‰–Šƒ–
’ƒ”‡–ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†–Šƒ–‹–‹•‡…‡••ƒ”›•‘–‘†‘Ǥ
 316 Lesson 5 Ȉ EP-TL

 …ƒ•‡ –Š‡ ‹…‘‡ ‘ˆ ƒ ‹†‹˜‹†—ƒŽ ‹…Ž—†‡• ƒ› ‹…‘‡ ‘ˆ Š‹• ‹‘” …Š‹Ž† ‹ –‡”• ‘ˆ –Š‹• •‡…–‹‘ ȏ‹Ǥ‡Ǥ ‡…–‹‘
͸ͶȋͳȌȐǡ•—…Š‹†‹˜‹†—ƒŽ•ŠƒŽŽ„‡‡–‹–Ž‡†–‘‡š‡’–‹‘‘ˆ–Š‡ƒ‘—–‘ˆ•—…Š‹…‘‡‘”•ǤͳǡͷͲͲ™Š‹…Š‡˜‡”‹• Ž‡••Ǥ
INCOME FROM THE CONVERTED PROPERTY [SECTION 64(2)]
Š‡”‡ƒ‹†‹˜‹†—ƒŽǡ„‡‹‰ƒ‡„‡”‘ˆ‹†—†‹˜‹†‡† ƒ‹Ž›ǡ–”ƒ•ˆ‡”•Š‹••‡ŽˆǦƒ…“—‹”‡†’”‘’‡”–›ƒˆ–‡”͵ͳ•–
‡…‡„‡”ǡͳͻ͸ͻ–‘–Š‡ˆƒ‹Ž›ˆ‘”–Š‡…‘‘„‡‡ϐ‹–‘ˆ–Š‡ˆƒ‹Ž›ǡ‘”–Š”‘™‹‰‹–‹–‘–Š‡…‘‘•–‘…‘ˆ–Š‡
ˆƒ‹Ž›ǡ‘”–”ƒ•ˆ‡”•‹–†‹”‡…–Ž›‘”‹†‹”‡…–Ž›–‘–Š‡ˆƒ‹Ž›‘–Š‡”™‹•‡–Šƒˆ‘”ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ǡ•—…Š’”‘’‡”–›
‹• ‘™ ƒ• …‘˜‡”–‡† ’”‘’‡”–›Ǥ Š‡ ‹…‘‡ †‡”‹˜‡† ˆ”‘ –Š‡ …‘˜‡”–‡† ’”‘’‡”–› ‘” ƒ› ’ƒ”– –Š‡”‡‘ˆǡ •ŠƒŽŽ „‡
‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
‘”–Š‹••‡…–‹‘Dz’”‘’‡”–›dz‹…Ž—†‡•ƒ›‹–‡”‡•–‹’”‘’‡”–›ǡ‘˜ƒ„Ž‡‘”‹‘˜ƒ„Ž‡–Š‡’”‘…‡‡†•‘ˆ•ƒŽ‡–Š‡”‡‘ˆ
ƒ†ƒ›‘‡›‘”‹˜‡•–‡–ˆ‘”–Š‡–‹‡„‡‹‰”‡’”‡•‡–‹‰–Š‡’”‘…‡‡†•‘ˆ•ƒŽ‡–Š‡”‡‘ˆƒ†™Š‡”‡–Š‡’”‘’‡”–›
‹•…‘˜‡”–‡†‹–‘ƒ›‘–Š‡”’”‘’‡”–›„›ƒ›‡–Š‘†ǡ•—…Š‘–Š‡”’”‘’‡”–›Ǥ
Income from converted property to spouse after partition
Š‡”‡–Š‡…‘˜‡”–‡†’”‘’‡”–›Šƒ•„‡‡–Š‡•—„Œ‡…–ƒ––‡”‘ˆ–‘–ƒŽ‘”’ƒ”–‹ƒŽ’ƒ”–‹–‹‘ƒ‘‰•––Š‡‡„‡”•‘ˆ–Š‡
ˆƒ‹Ž›ǡ–Š‡‹…‘‡†‡”‹˜‡†ˆ”‘•—…Š…‘˜‡”–‡†’”‘’‡”–›ƒ•‹•”‡…‡‹˜‡†„›–Š‡•’‘—•‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”‘’ƒ”–‹–‹‘
•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǤ
Š‡‹…‘‡•‘‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽ•ŠƒŽŽ„‡‡š…Ž—†‡†ˆ”‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›‘”
•’‘—•‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Š‡‹…‘‡ˆ”‘–Š‡ƒ„‘˜‡‡–‹‘‡†‹–‡••ŠƒŽŽϐ‹”•–„‡…‘’—–‡†—†‡”–Š‡ƒ’’”‘’”‹ƒ–‡Š‡ƒ†•‹–Š‡Šƒ†•‘ˆ
–Š‡–”ƒ•ˆ‡”‡‡ƒ†ƒˆ–‡”–Šƒ–‹–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”—†‡”–Š‡Š‡ƒ†ǡDz…‘‡ˆ”‘
‘–Š‡”•‘—”…‡•dzǤ‘™‡˜‡”ǡ–Š‡‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›–”ƒ•ˆ‡””‡†–‘•’‘—•‡•ŠƒŽŽ„‡…‘’—–‡†—†‡”–Š‡Š‡ƒ†
Ǯ…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ǯ‹–Š‡Šƒ†•‘ˆ–”ƒ•ˆ‡”‘”ƒ†‘–‹–Š‡Šƒ†•‘ˆ–Š‡–”ƒ•ˆ‡”‡‡Ǥ
š’Žƒƒ–‹‘ –‘ –Š‡ –‡” Ǯ‹…‘‡ǯ —•‡† ‹ ‡…–‹‘ ͸Ͷ ‹…Ž—†‡• ǮŽ‘••ǯǤ Š‹• ƒ‡†‡– —ŽŽ‹ϐ‹‡• –Š‡ †‡…‹•‹‘ ‹
Dayalbhai Madhavji Vadera v. C.I.T. (1966) 60 ITR 551 ‘ˆ–Š‡
—Œƒ”ƒ–‹‰Š‘—”––Šƒ––Š‡–‡”Ǯ‹…‘‡ǯ—•‡†‹—„Ǧ
•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘͸Ͷ†‘‡•‘–‹…Ž—†‡ƒŽ‘••Ǥ

CLUBBING PROVISION’S SUMMARY

Nature of Transaction Clubbed in the Conditions/Exceptions Relevant Reference
Hands of
Transfer of Income ”ƒ•ˆ‡”‘”™Š‘ ””‡•’‡…–‹˜‡‘ˆǣ ͳǤ …‘‡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ
without transfer of –”ƒ•ˆ‡”•–Š‡ ‡…–‹‘ ͸Ͷ ‹…Ž—†‡• Ž‘••‡•Ǥ ȏǤ
Assets (Section 60) ‹…‘‡ ͳǤ Š‡–Š‡” •—…Š –”ƒ•ˆ‡” ‹• ‘”‹•™ƒ› Š‡––› ͳͺ͵  ͷͷͻ
”‡˜‘…ƒ„Ž‡‘”‘–Ǥ ȋȌȐ ȏƒŽ•‘ •‡‡ š’ŽǤ ȋʹȌ –‘
‡…–‹‘͸ͶȐ
ʹǤ Š‡–Š‡” –Š‡ –”ƒ•ˆ‡” ‹•
‡ˆˆ‡…–‡† „‡ˆ‘”‡ ‘” ƒˆ–‡” –Š‡ ʹǤ‡…–‹‘ ͸Ͳ †‘‡• ‘– ƒ’’Ž› ‹ˆ
…‘”’—• ‹–•‡Žˆ ‹• –”ƒ•ˆ‡””‡†Ǥ
…‘‡…‡‡– ‘ˆ …‘‡
ȏ
”ƒ†Š‹ ƒ”ƒ›ƒƒ ƒ‘ ͳ͹͵ 
ƒš…–Ǥ ͷͻ͵ȋȌȐ
Revocable transfer of ”ƒ•ˆ‡”‘”™Š‘ Ž—„„‹‰‘–ƒ’’Ž‹…ƒ„Ž‡‹ˆǣ ”ƒ•ˆ‡”Š‡Ž†ƒ•”‡˜‘…ƒ„Ž‡
Assets (Section 61) –”ƒ•ˆ‡”•–Š‡
ͳǤ”—•–Ȁ–”ƒ•ˆ‡”‹””‡˜‘…ƒ„Ž‡
••‡–•
†—”‹‰ –Š‡ Ž‹ˆ‡–‹‡ ‘ˆ
„‡‡ϐ‹…‹ƒ”‹‡•Ȁ–”ƒ•ˆ‡”‡‡Ǣ‘”
ʹǤ ”ƒ•ˆ‡” ƒ†‡ ’”‹‘” –‘
ͳǤ ˆ –Š‡”‡ ‹• ’”‘˜‹•‹‘ –‘ ”‡Ǧ
–”ƒ•ˆ‡” †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›
™Š‘Ž‡Ȁ’ƒ”– ‘ˆ ‹…‘‡Ȁƒ••‡– –‘
–”ƒ•ˆ‡”‘”Ǣ
ͳǦͶǦͳͻ͸ͳ ƒ† ‘– ”‡˜‘…ƒ„Ž‡ ʹǤ ˆ –Š‡”‡ ‹• ƒ ”‹‰Š– –‘ ”‡ƒ••—‡
ˆ‘” ƒ ’‡”‹‘† ‘ˆ ͸ ›‡ƒ”•Ǥ ’‘™‡”ǡ †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›ǡ –Š‡
”‘˜‹†‡† –Š‡ –”ƒ•ˆ‡”‘” –”ƒ•ˆ‡” ‹• Š‡Ž† ”‡˜‘…ƒ„Ž‡ ƒ†
†‡”‹˜‡• ‘ †‹”‡…– ‘” ‹†‹”‡…– ƒ…–—ƒŽ‡š‡”…‹•‡‹•‘–‡…‡••ƒ”›ȏǤ
„‡‡ϐ‹– ˆ”‘ •—…Š ‹…‘‡ ‹ ƒ‰Š„‹”‹‰Šͷ͹ͶͲͺȋȌȐ
‡‹–Š‡”…ƒ•‡Ǥ
Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 317

Nature of Transaction Clubbed in the Conditions/Exceptions Relevant Reference

Hands of

͵ǤŠ‡”‡‘ƒ„•‘Ž—–‡”‹‰Š–‹•‰‹˜‡
–‘ –”ƒ•ˆ‡”‡‡ ƒ† ƒ••‡– …ƒ ”‡˜‡”–
–‘ –”ƒ•ˆ‡”‘” ‹ ’”‡•…”‹„‡†
…‹”…—•–ƒ…‡•ǡ –”ƒ•ˆ‡” ‹• Š‡Ž†
”‡˜‘…ƒ„Ž‡Ǥ ȏ ›‘–‡†”ƒ•‹ŠŒ‹ ˜•Ǥ ǤǤ
”‹’ƒ–Š‹ʹͲͳ͸ͳͳȋȌȐ

Salary, Commission, Fees ’‘—•‡™Š‘•‡ Ž—„„‹‰ ‘– ƒ’’Ž‹…ƒ„Ž‡ ‹ˆǣ ͳǤŠ‡”‡Žƒ–‹‘•Š‹’‘ˆŠ—•„ƒ†ƒ†

or remuneration paid to –‘–ƒŽ‹…‘‡ ’‘—•‡ ’‘••‡••‡• –‡…Š‹…ƒŽ ™‹ˆ‡ —•– •—„•‹•– ƒ– –Š‡ –‹‡ ‘ˆ
spouse from a concern ȋ‡š…Ž—†‹‰ ‘” ’”‘ˆ‡••‹‘ƒŽ “—ƒŽ‹ϐ‹…ƒ–‹‘ ƒ……”—ƒŽ‘ˆ–Š‡‹…‘‡ǤȏŠ‹Ž‹’ ‘Š
in which an individual ‹…‘‡–‘„‡ ƒ† ”‡—‡”ƒ–‹‘ ‹• •‘Ž‡Ž› Žƒ•‡–Š‘ƒ•Ͷͻͻ͹ȋȌȐǤ
has a substantial interest …Ž—„„‡†Ȍ‹• ƒ––”‹„—–ƒ„Ž‡  –‘  ƒ’’Ž‹…ƒ–‹‘
ʹǤ …‘‡ ‘–Š‡” –Šƒ •ƒŽƒ”›ǡ
[Section 64 (1)(ii)] ‰”‡ƒ–‡” ‘ˆ –Šƒ– ‘™Ž‡†‰‡Ȁ
…‘‹••‹‘ǡˆ‡‡•‘””‡—‡”ƒ–‹‘
“—ƒŽ‹ϐ‹…ƒ–‹‘Ǥ
‹•‘–…Ž—„„‡†—†‡”–Š‹•…Žƒ—•‡Ǥ

Income from assets †‹˜‹†—ƒŽ Ž—„„‹‰ ‘– ƒ’’Ž‹…ƒ„Ž‡ ‹ˆǣ ͳǤ …‘‡ ‡ƒ”‡† ‘—– ‘ˆ …‘‡
transferred directly or –”ƒ•ˆ‡””‹‰–Š‡ Š‡ƒ••‡–•ƒ”‡–”ƒ•ˆ‡””‡†Ǣ ƒ”‹•‹‰ˆ”‘–”ƒ•ˆ‡””‡†ƒ••‡–•‘–
indirectly to the spouse ••‡– Ž‹ƒ„Ž‡ ˆ‘” …Ž—„„‡†Ǥ [M.S.S. Rajan
ͳǤ ‹–Šƒ ƒ‰”‡‡‡– –‘ Ž‹˜‡
without adequate ʹͷʹͳʹ͸ȋƒ†ȌȐ
ƒ’ƒ”–
consideration [Section
ʹǤ ƒ•Š ‰‹ˆ–‡† –‘ •’‘—•‡ ƒ† Š‡Ȁ
64 (1)(iv)] ʹǤ‡ˆ‘”‡ƒ””‹ƒ‰‡
•Š‡ ‹˜‡•–• –‘ ‡ƒ” ‹–‡”‡•–Ǥ
͵Ǥ …‘‡ ‡ƒ”‡† ™Š‡ [Mohini Thaper˜•ǤCIT ͺ͵ʹͲͺ
”‡Žƒ–‹‘†‘‡•‘–‡š‹•– ȋȌȐ
ͶǤ › ƒ”–ƒ ‘ˆ   ‰‹ˆ–‹‰ ͵Ǥƒ’‹–ƒŽ‰ƒ‹‘•ƒŽ‡‘ˆ’”‘’‡”–›
…‘Ǧ’ƒ”…‡ƒ”›’”‘’‡”–›–‘Š‹• ™Š‹…Š ™ƒ• ”‡…‡‹˜‡† ™‹–Š‘—–
™‹ˆ‡ǤL. Hirday Narain˜• ITO …‘•‹†‡”ƒ–‹‘ ˆ”‘ •’‘—•‡
͹ͺʹ͸ȋȌ ȏ‡˜‡–‹ƒŽ M. Sheth ˜•ǤCIT͸ͺ
ͷͲ͵ȋȌȐ
ͷǤ ”‘’‡”–› ƒ…“—‹”‡† ‘—– ‘ˆ
’‹ ‘‡›Ǥ R.B.N.J. Naidu ˜•Ǥ ͶǤ ”ƒ•ƒ…–‹‘ —•– „‡ ”‡ƒŽǤ ȏǤǤ
CIT ʹͻͳͻͶȋƒ‰ǤȌ ‘Š‹†”‘‘ͻͻͷͺ͵ȋ‡ŽŠ‹ȌȐ

Income from the assets †‹˜‹†—ƒŽ Š‡ –”ƒ•ˆ‡” •Š‘—Ž† „‡ ”‘•• –”ƒ•ˆ‡”• ƒ”‡ ƒŽ•‘ …‘˜‡”‡†
transferred to son’s wife –”ƒ•ˆ‡””‹‰–Š‡ ™‹–Š‘—– ƒ†‡“—ƒ–‡ ȏǤǤ‘–Šƒ”‹ͶͻͳͲ͹ȋȌȐ
[Section 64 (1)(vi)] ••‡– …‘•‹†‡”ƒ–‹‘Ǥ

Transfer of assets by an †‹˜‹†—ƒŽ Š‡   –”ƒ•ˆ‡”   •Š‘—Ž† „‡ ͳǤ ”ƒ•ˆ‡”‘”‡‡†‘–‡…‡••ƒ”‹Ž›

individual to a person or –”ƒ•ˆ‡””‹‰–Š‡ ™‹–Š‘—– ƒ†‡“—ƒ–‡ Šƒ˜‡ –ƒšƒ„Ž‡ ‹…‘‡ ‘ˆ Š‹• ‘™Ǥ
AOP for the immediate ••‡– …‘•‹†‡”ƒ–‹‘ ȏǤ—”—‰‡•ƒʹͶͷ͵Ͳͳȋƒ†ȌȐ
‘” †‡ˆ‡””‡† „‡‡ϐ‹– ‘ˆ
his Spouse o r Son’s ʹǤ ‹ˆ‡ ‡ƒ• Ž‡‰ƒŽŽ› ™‡††‡†
wife [Section 64(1)(vii) ™‹ˆ‡Ǥ ȏš‡…—–‘”• ‘ˆ –Š‡ ™‹ŽŽ ‘ˆ ǤǤ
& (viii)] ”‹•Šƒ›‡”͵ͺͳͶͶȋ‡”ȌȐ
 318 Lesson 5 Ȉ EP-TL

Nature of Transaction Clubbed in the Conditions/Exceptions Relevant Reference

Hands of
Income of a minor child ͳǤˆ–Š‡ Ž—„„‹‰‘–ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ǣȂ ͳǤ …‘‡ ‘—– ‘ˆ ’”‘’‡”–›
[Child includes step ƒ””‹ƒ‰‡ –”ƒ•ˆ‡””‡† ˆ‘” ‘ …‘•‹†‡”ƒ–‹‘
child, adopted child and •—„•‹•–•ǡ‹–Š‡ ͳǤ …‘‡ ‘ˆ ƒ ‹‘” …Š‹Ž† –‘ƒ‹‘”ƒ””‹‡††ƒ—‰Š–‡”ǡ•ŠƒŽŽ
minor married Šƒ†•‘ˆ–Š‡ •—ˆˆ‡”‹‰ ƒ› †‹•ƒ„‹Ž‹–› ‘– „‡ …Ž—„„‡† ‹ –Š‡ ’ƒ”‡–•ǯ
daughter] [Section 64 ’ƒ”‡–™Š‘•‡ •’‡…‹ϐ‹‡†—Ȁ•ǤͺͲ Šƒ†•Ǥȏ‡…–‹‘ʹ͹Ȑ
(1A)] –‘–ƒŽ‹…‘‡‹• ʹǤ …‘‡ ‘ ƒ……‘—– ‘ˆ ʹǤŠ‡ ’ƒ”‡– ‹ ™Š‘•‡ Šƒ†• –Š‡
‰”‡ƒ–‡”Ǣ‘”Ǣ
ƒ—ƒŽ ™‘” †‘‡ „› –Š‡ ‹‘”ǯ• ‹…‘‡ ‹• …Ž—„„‡† ‹•
ʹǤˆ–Š‡ ‹‘”…Š‹Ž† ‡–‹–Ž‡†–‘ƒ‡š‡’–‹‘—’–‘•Ǥ
ƒ””‹ƒ‰‡†‘‡• ͳǡͷͲͲ’‡”…Š‹Ž†Ǥȏ‡…–‹‘ͳͲȋ͵ʹȌȐ
͵Ǥ …‘‡ ‘ ƒ……‘—– ‘ˆ ƒ›
‘–•—„•‹•–ǡ‹
ƒ…–‹˜‹–› ‹˜‘Ž˜‹‰ ƒ’’Ž‹…ƒ–‹‘
–Š‡Šƒ†•‘ˆ
‘ˆ•‹ŽŽ•ǡ–ƒŽ‡–‘”•’‡…‹ƒŽ‹œ‡†
–Š‡’‡”•‘™Š‘
‘™Ž‡†‰‡ƒ†‡š’‡”‹‡…‡
ƒ‹–ƒ‹•–Š‡
‹‘”…Š‹Ž†Ǣ

͵Ǥ…‘‡‘…‡
‹…Ž—†‡†‹–Š‡
–‘–ƒŽ‹…‘‡‘ˆ
‡‹–Š‡”‘ˆ
’ƒ”‡–•ǡ‹–•ŠƒŽŽ
…‘–‹—‡–‘„‡
‹…Ž—†‡†‹–Š‡
Šƒ†•‘ˆ•ƒ‡
’ƒ”‡–‹–Š‡
•—„•‡“—‡–
›‡ƒ”—Ž‡••
‹••ƒ–‹•ϐ‹‡†–Šƒ–
‹–‹•‡…‡••ƒ”›
–‘†‘•‘ȋƒˆ–‡”
‰‹˜‹‰ –Šƒ–
’ƒ”‡–
‘’’‘”–—‹–›‘ˆ
„‡‹‰Š‡ƒ”†Ȍ
Income of HUF from …‘‡‹• Ž—„„‹‰ ƒ’’Ž‹…ƒ„Ž‡ ‡˜‡ ‹…–‹‘—†‡”–Š‹••‡…–‹‘—•– „‡
property converted by ‹…Ž—†‡†‹ –Š‡ ‹ˆǣ Š‡ …‘˜‡”–‡† ’”‘’‡”–› ‡š–‡†‡† –‘ …‘’—–ƒ–‹‘ ‘ˆ
the individual into HUF Šƒ†•‘ˆ ‹• •—„•‡“—‡–Ž› ’ƒ”–‹–‹‘‡†Ǣ ‹…‘‡ ƒŽ•‘Ǥ ȏǤǤ —’’—”ƒŒ ͳʹ͹
property [Section 64 (2)] ‹†‹˜‹†—ƒŽƬ‘– ‹…‘‡ †‡”‹˜‡† „› –Š‡ ͶͶ͹ȋƒ†ȌȐ
‹–Š‡Šƒ†•‘ˆ •’‘—•‡ ˆ”‘ •—…Š …‘˜‡”–‡†
 ’”‘’‡”–› ™‹ŽŽ „‡ –ƒšƒ„Ž‡ ‹
–Š‡Šƒ†•‘ˆ‹†‹˜‹†—ƒŽ

RECOVERY OF TAX
Dual Liability for Tax ǣŠ‡–ƒš‘–Š‡‹…‘‡‘ˆ–Š‡‘–Š‡”’‡”•‘™Š‹…ŠŠƒ•„‡‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ –Š‡
ƒ••‡••‡‡…ƒ‡‹–Š‡”„‡”‡…‘˜‡”‡†ˆ”‘–Š‡ƒ••‡••‡‡‘”ˆ”‘–Š‡‘–Š‡”’‡”•‘ǤŠ‡Ž‹ƒ„‹Ž‹–›‘ˆ‘–Š‡”’‡”•‘‹•Ž‹‹–‡†
–‘–Š‡’‘”–‹‘‘ˆ–Š‡–ƒšŽ‡˜‹‡†‘–Š‡ƒ••‡••‡‡™Š‹…Š‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡‹…‘‡•‘‹…Ž—†‡†Ǥ‹•Ž‹ƒ„‹Ž‹–›ƒ”‹•‡•
ƒˆ–‡”–Š‡•‡”˜‹…‡‘ˆƒ‘–‹…‡‘ˆ†‡ƒ†„›–Š‡••‡••‹‰ˆϐ‹…‡”‹–Š‹•„‡ŠƒŽˆǤ
Š‡”‡ƒ›•—…Šƒ••‡–ȋ–Š‡‹…‘‡ˆ”‘™Š‹…ŠŠƒ•„‡‡‹…Ž—†‡†‹–Šƒ–‘ˆ–Š‡ƒ••‡••‡‡Ȍ‹•Š‡Ž†Œ‘‹–Ž›„›‘”‡–Šƒ
‘‡’‡”•‘ǡ–Š‡›•ŠƒŽŽ„‡Œ‘‹–Ž›ƒ†•‡˜‡”ƒŽŽ›Ž‹ƒ„Ž‡–‘’ƒ›–Š‡–ƒš™Š‹…Š‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡‹…‘‡ˆ”‘–Š‡
ƒ••‡–••‘‹…Ž—†‡†Ǥ
Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 319

Illustration 6 :
”Šƒ”ƒ‹˜‡•–••ͳͲŽƒŠ‹ƒϐ‹š‡††‡’‘•‹–ȋ Ȍƒ–ƒ„ƒǡ‹Š‹•™‹ˆ‡ǯ•ƒ‡Ǥ–‡”‡•–‘ˆ•ǤͳŽƒŠƒ”‹•‡•‘ –Š‹•
‹…‘‡Ǥ”•Šƒ”ƒ‹˜‡•–•–Š‡‹–‡”‡•–‘’‡”‹‘†‹…„ƒ•‹•ƒ†‹–‡”‡•–ˆ‘”ƒƒ‘—–‘ˆ•ǤͷǡͲͲͲƒ”‹•‡•‘ –Š‡
‹–‡”‡•–†‡’‘•‹–‡†„›Š‡”‹„ƒǤƒŽ›œ‡–Š‡…Ž—„„‹‰’”‘˜‹•‹‘•ƒ†ϐ‹† ‘—––Š‡–ƒšƒ„‹Ž‹–›‘ˆ‹–‡”‡•–ƒ……”—‡†Ǥ
Solution:
•ǤͳŽƒŠ•‹–Š‡‘™–‡”‡•–‹…‘‡‘ ™‹ŽŽ„‡…Ž—„„‡†™‹–ŠŠ‹•ȋ”ǤŠƒ”ƒȌ‹…‘‡Ǥ–‡”‡•–‘ˆ•ǤͷǡͲͲͲ
ƒ”‘—•‡†‘—–‘ˆ˜‡•–‡–ƒ†‡„›”•ǤŠƒ”ƒ™‹ŽŽ„‡–ƒš‡†ƒ•Š‡”‘™‹…‘‡Ǥ

Illustration 7 :
‡†Š‘Ž†•ͶͲΨ‘ˆ•Šƒ”‡•‹ƒ‘’ƒ›Ǥ”•Ǥ‡†ȋƒȌ‹•‡’Ž‘›‡†‹–Š‡…‘’ƒ›ƒ•ƒ‘’ƒ›‡…”‡–ƒ”› ƒ†
‹•‰‡––‹‰•ƒŽƒ”›‘ˆ•ǤͳͷǡͲͲͲ’‡”‘–ŠǤ‘’—–‡–‘–ƒŽ‹…‘‡ƒ†–ƒš’ƒ›ƒ„Ž‡„›‡†ƒ†”•Ǥ‡†ˆ‘” –Š‡
••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵ƒ••—‹‰‘–Š‡”‹…‘‡‘ˆ‡†‹••ǤʹǡͲͲǡͲͲͲˆ”‘ƒ„—•‹‡••ǤǤ
Solution:
 –Š‡ ’”‡•‡– …ƒ•‡ǡ ”•Ǥ ‡†ǯ• •ƒŽƒ”› ‹…‘‡ ™‹ŽŽ „‡ –ƒšƒ„Ž‡ ‹ Š‡” Šƒ†• ‘Ž› ƒ• •Š‡ ‹• ‡ƒ”‹‰ –Š‡ •ƒ‡
–Š”‘—‰ŠŠ‡”’”‘ˆ‡••‹‘ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘Ǥ
Computation of Total Income and Tax Liability for Assessment Year 2022-23

Particulars Mr. Red (Rs.) Mrs. Red (Rs.)

…‘‡ˆ”‘ƒŽƒ”› ‹Ž ͳǡͺͲǡͲͲͲ
…‘‡ˆ”‘—•‹‡•• ʹǡͲͲǡͲͲͲ ‹Ž

”‘••‘–ƒŽ…‘‡ȋ‘”‘–ƒŽ…‘‡Ȍ ʹǡͲͲǡͲͲͲ ͳǡͺͲǡͲͲͲ
ƒš‹ƒ„‹Ž‹–›ȋƒ•–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†rʹǡͷͲǡͲͲͲȌǣ Nil Nil

Illustration 8:
”Ǥ ‹– ‹• „‡‡ϐ‹…‹ƒŽŽ› Š‘Ž†‹‰ ʹͳΨ ‡“—‹–› •Šƒ”‡• ‘ˆ ••‡ ‹‡”ƒŽ• ˜–Ǥ –†Ǥ ”•Ǥ ‹– ‹• ‡’Ž‘›‡† ƒ•
ƒƒ‰‡”ȋ‹ƒ……‘—–•†‡’ƒ”–‡–Ȍ‹••‡‹‡”ƒŽ•˜–Ǥ–†Ǥƒ–ƒ‘–ŠŽ›•ƒŽƒ”›‘ˆ•ǤͺͶǡͲͲͲǤ”•Ǥ‹–‹•‘–
Šƒ˜‹‰ ƒ› ‘™Ž‡†‰‡ǡ ‡š’‡”‹‡…‡ ‘” “—ƒŽ‹ϐ‹…ƒ–‹‘ ‹ –Š‡ ϐ‹‡Ž† ‘ˆ ƒ……‘—–ƒ…›Ǥ ‹ŽŽ –Š‡ ”‡—‡”ƒ–‹‘ ȋ‹Ǥ‡Ǥǡ
•ƒŽƒ”›Ȍ”‡…‡‹˜‡†„›”•Ǥ‹–„‡…Ž—„„‡†™‹–Š–Š‡‹…‘‡‘ˆ”Ǥ‹–ǫ
Solution:
–Š‹••‹–—ƒ–‹‘ǡ”Ǥ‹–‹•Šƒ˜‹‰•—„•–ƒ–‹ƒŽ‹–‡”‡•–‹••‡‹‡”ƒŽ•˜–Ǥ–†Ǥƒ†”‡—‡”ƒ–‹‘‘ˆ”•Ǥ
‹–‹•‘–Œ—•–‹ϐ‹ƒ„Ž‡ȋ‹Ǥ‡Ǥǡ•Š‡‹•‡’Ž‘›‡†™‹–Š‘—–ƒ›–‡…Š‹…ƒŽ‘”’”‘ˆ‡••‹‘ƒŽ‘™Ž‡†‰‡‘”‡š’‡”‹‡…‡Ȍƒ†ǡ
Š‡…‡ǡ•ƒŽƒ”›”‡…‡‹˜‡†„›”•Ǥ‹–ˆ”‘••‡‹‡”ƒŽ•˜–Ǥ–†Ǥ™‹ŽŽ„‡…Ž—„„‡†™‹–Š–Š‡‹…‘‡‘ˆ”Ǥ‹–
ƒ†™‹ŽŽ„‡–ƒš‡†‹–Š‡Šƒ†•‘ˆ”Ǥ‹–Ǥ

Illustration 9:
”Ǥƒ’‘‘”‰‹ˆ–‡†•ǤͺǡͶͲǡͲͲͲ–‘Š‹•™‹ˆ‡ǤŠ‡•ƒ‹†ƒ‘—–‹•‹˜‡•–‡†„›Š‹•™‹ˆ‡‹†‡„‡–—”‡•‘ˆƒ…‘’ƒ›Ǥ‹ŽŽ–Š‡
‹…‘‡ˆ”‘–Š‡†‡„‡–—”‡’—”…Šƒ•‡†„›”•Ǥƒ’‘‘”ˆ”‘‰‹ˆ–‡†‘‡›„‡…Ž—„„‡†™‹–Š–Š‡‹…‘‡‘ˆ”Ǥƒ’‘‘”ǫ
Solution:
•Ǥ ͺǡͶͲǡͲͲͲ ‹• –”ƒ•ˆ‡””‡† –‘ •’‘—•‡Ǥ —† ‹• –”ƒ•ˆ‡””‡† ˜‹ƒ ‰‹ˆ– ȋ‹Ǥ‡Ǥǡ ™‹–Š‘—– ƒ†‡“—ƒ–‡ …‘•‹†‡”ƒ–‹‘Ȍ ƒ†ǡ
Š‡…‡ǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͸ͶȋͳȌȋ‹˜Ȍ™‹ŽŽ„‡ƒ––”ƒ…–‡†ǤŠ‡’”‘˜‹•‹‘•‘ˆ…Ž—„„‹‰™‹ŽŽƒ’’Ž›‡˜‡‹ˆ–Š‡ˆ‘”
‘ˆƒ••‡–‹•…Šƒ‰‡†„›–Š‡–”ƒ•ˆ‡”‡‡Ǧ•’‘—•‡Ǥ
 –Š‹• …ƒ•‡ ƒ••‡– –”ƒ•ˆ‡””‡† ‹• ‘‡› ƒ†ǡ •—„•‡“—‡–Ž›ǡ –Š‡ ˆ‘” ‘ˆ ƒ••‡– ‹• …Šƒ‰‡† –‘ †‡„‡–—”‡•ǡ Š‡…‡ǡ
‹…‘‡ ˆ”‘ †‡„‡–—”‡• ƒ…“—‹”‡† ˆ”‘ ‘‡› ‰‹ˆ–‡† „› Š‡” Š—•„ƒ† ™‹ŽŽ „‡ …Ž—„„‡† ™‹–Š –Š‡ ‹…‘‡ ‘ˆ Š‡”
Š—•„ƒ†Ǥ Š—•ǡ ‹–‡”‡•– ‘ †‡„‡–—”‡ ”‡…‡‹˜‡† „› ”•Ǥ ƒ’‘‘” ™‹ŽŽ „‡ …Ž—„„‡† ™‹–Š –Š‡ ‹…‘‡‘ˆ”Ǥƒ’‘‘”Ǥ
 320 Lesson 5 Ȉ EP-TL

SET-OFF AND CARRY-FORWARD OF LOSSES

Š‹Ž‡ ‘‡ ‡†‡ƒ˜‘”• –‘ †‡”‹˜‡ ‹…‘‡ǡ –Š‡ ’‘••‹„‹Ž‹–› ‘ˆ ‹…—””‹‰ Ž‘••‡• …ƒ‘– „‡ ”—Ž‡† ‘—–Ǥ ƒ•‡† ‘ –Š‡
’”‹…‹’Ž‡•‘ˆƒ–—”ƒŽŒ—•–‹…‡ǡƒ•‡–Ǧ‘ˆˆ•Š‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”Ž‘••‹…—””‡†ǤŠ‡‹…‘‡–ƒšŽƒ™•‹†‹ƒ”‡…‘‰‹œ‡–Š‹•
ƒ†’”‘˜‹†‡ˆ‘”ƒ†Œ—•–‡–ƒ†—–‹Ž‹œƒ–‹‘‘ˆ–Š‡Ž‘••‡•Ǥ ‘”–Š‹•’—”’‘•‡ǡ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ…‘–ƒ‹• •’‡…‹ϐ‹…
’”‘˜‹•‹‘•ȋ‡…–‹‘•͹Ͳ–‘ͺͲȌˆ‘”–Š‡•‡–Ǧ‘ˆˆƒ†…ƒ””›Ǧˆ‘”™ƒ”†‘ˆŽ‘••‡•Ǥ
…‘‡Ǧ–ƒš‹• Ž‡˜‹‡† ‘ –Š‡–‘–ƒŽ‹…‘‡ ‘ˆ –Š‡’”‡˜‹‘—• ›‡ƒ” ‘ˆ ƒƒ••‡••‡‡ ƒ† ‹– ‹•‡…‡••ƒ”› –‘ ƒ•…‡”–ƒ‹ –Š‡
–‘–ƒŽ ‹…‘‡Ǥ —”–Š‡”ǡ Ž‘•• ‹…—””‡† „› –Š‡ ƒ••‡••‡‡ ‹• –‘ „‡ •‡–Ǧ‘ˆˆ ƒ‰ƒ‹•– ƒ› ‹…‘‡ǡ –Š‡ ‡– ”‡•—Ž– ‘ˆ –Š‡
ƒ••‡••‡‡ǯ•ƒ…–‹˜‹–‹‡•†—”‹‰–Š‡’ƒ”–‹…—Žƒ”ƒ……‘—–‹‰›‡ƒ”…ƒ‘–„‡ƒ•…‡”–ƒ‹‡†ƒ†…‘•‡“—‡–Ž›–Š‡–ƒš ’ƒ›ƒ„Ž‡
™‘—Ž†ƒŽ•‘„‡‹…ƒ’ƒ„Ž‡‘ˆ†‡–‡”‹ƒ–‹‘Ǥ
Set-Off of Losses from One Source against Income from another source under the Same Head of Income
[Section 70]
Š‡’”‘…‡••‘ˆƒ†Œ—•–‡–‘ˆŽ‘••ˆ”‘ƒ•‘—”…‡—†‡”ƒ’ƒ”–‹…—Žƒ”Š‡ƒ†‘ˆ‹…‘‡ƒ‰ƒ‹•–‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡
—†‡” –Š‡ •ƒ‡ Š‡ƒ† ‘ˆ ‹…‘‡ ‹• …ƒŽŽ‡† ‹–”ƒǦŠ‡ƒ† ƒ†Œ—•–‡–ǡ ‡Ǥ‰Ǥǡ†Œ—•–‡– ‘ˆ Ž‘•• ˆ”‘ „—•‹‡•• ƒ‰ƒ‹•–
’”‘ϐ‹–ˆ”‘„—•‹‡••Ǥ
…‘‡‘ˆƒ’‡”•‘‹•…‘’—–‡†—†‡”ϐ‹˜‡Š‡ƒ†•ǤǮ‘—”…‡•ǯ‘ˆ‹…‘‡†‡”‹˜‡†„›ƒ‹†‹˜‹†—ƒŽƒ›„‡ƒ›„—–
›‡– –Š‡› …‘—Ž† „‡ …Žƒ••‹ϐ‹‡† —†‡” –Š‡ •ƒ‡ Š‡ƒ†Ǥ ‘•‹†‡” ƒ •‹–—ƒ–‹‘ ™Š‡”‡ ƒ”‹•Š Šƒ• –™‘ ’”‘’‡”–‹‡•Ǧ ‘‡ǡ
‘……—’‹‡†„›Š‹ƒ†–Š‡‘–Š‡”ǡŽ‡–‘—–Ǥƒ”‹•Š’ƒ›•‹–‡”‡•–‘Ž‘ƒ‘ˆ•ͳǤͷͲŽƒŠ‘–Š‡’”‘’‡”–› ‘……—’‹‡†ƒ†
†‡”‹˜‡•‡–”‡–ƒŽ‹…‘‡‘ˆ•ͳǤͷͲŽƒŠˆ”‘–Š‡Ž‡–Ǧ‘—–’”‘’‡”–›Ǥ…ƒ•‡‘ˆƒ•‡ŽˆǦ‘……—’‹‡† ’”‘’‡”–›ǡ‹…‘‡‹•
…‘’—–‡†ƒ•‹Žƒ†‹–‡”‡•–‡š’‡†‹–—”‡”‡•—Ž–•‹Ž‘••ǤŠ‡Ž‘••‘ˆ•ͳǤͷͲŽƒŠ…ƒ„‡ •‡–‘ˆˆƒ‰ƒ‹•–”‡–‹…‘‡
‘ˆ•ͳǤͷͲŽƒŠǢ–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Ǯ‘—•‡’”‘’‡”–›ǯ™‹ŽŽ„‡Ǯ‹ŽǯǤ
Š—•ǡ‹‰‡‡”ƒŽǡ‹ˆ–Š‡‡–”‡•—Ž–ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”‹”‡•’‡…–‘ˆƒ›•‘—”…‡ˆƒŽŽ‹‰—†‡”ƒ›Š‡ƒ†‘ˆ‹…‘‡
‹•ƒŽ‘••ǡ–Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†–‘•‡–‘ˆˆ–Š‡ƒ‘—–‘ˆ•—…ŠŽ‘••ƒ‰ƒ‹•–Š‹•‹…‘‡ˆ”‘ƒ›‘–Š‡”•‘—”…‡—†‡”
–Š‡•ƒ‡Š‡ƒ†Ǥ
‘™‡˜‡”ǡ–Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡–Š‡exceptions to general rule:

ͳǤ Speculative Business Lossesǣ‘••ˆ”‘•’‡…—Žƒ–‹‘„—•‹‡••…ƒ‘–„‡•‡–‘ˆƒ‰ƒ‹•–’”‘ϐ‹–ˆ”‘ƒ‘Ǧ

•’‡…—Žƒ–‹‘„—•‹‡••Š‘™‡˜‡”Ž‘••ˆ”‘‘•’‡…—Žƒ–‹˜‡„—•‹‡••…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–•’‡…—Žƒ–‹‘‹…‘‡Ȍ
2. Long-term capital Lossǣ‘‰‡”ƒ’‹–ƒŽ‘••ȋȌ…ƒ‘Ž›„‡•‡–‘ˆˆƒ‰ƒ‹•–‘‰‡”ƒ’‹–ƒŽ
ƒ‹
ȋ
Ȍƒ†…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–Š‘”––‡”ƒ’‹–ƒŽ
ƒ‹ȋ
ȌŠ‘™‡˜‡”…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•–
Ȍ
3. Casual Incomeǣ‘Ž‘••…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–…ƒ•—ƒŽ‹…‘‡ǡ‹Ǥ‡Ǥǡ…‘‡ˆ”‘Ž‘––‡”‹‡•ǡ…”‘••™‘”†’—œœŽ‡•ǡ
”ƒ…‡‹…Ž—†‹‰Š‘”•‡”ƒ…‡ǡ…ƒ”†‰ƒ‡ǡƒ†ƒ›‘–Š‡”‰ƒ‡‘ˆƒ›•‘”–‘”ˆ”‘‰ƒ„Ž‹‰‘”„‡––‹‰‘ˆƒ›ˆ‘”
‘”ƒ–—”‡Ǥ‘‡š’‡•‡•…ƒ„‡…Žƒ‹‡†ƒ‰ƒ‹•–…ƒ•—ƒŽ‹…‘‡Ǥ
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 321

4. Losses from the activity of owning and maintaining race horsesǣ‘••ˆ”‘–Š‡„—•‹‡••‘ˆ‘™‹‰ƒ†

ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‹…‘‡‘–Š‡”–Šƒ‹…‘‡ˆ”‘–Š‡„—•‹‡••‘ˆ‘™‹‰
ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•Ǥ
5. Loss from an exempted source cannot be set off against taxable Incomeǣˆ‹…‘‡ˆ”‘ƒ’ƒ”–‹…—Žƒ”
•‘—”…‡‹•‡š‡’–ˆ”‘–ƒšǡ–Š‡Ž‘••ˆ”‘•—…Š•‘—”…‡…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡™Š‹…Š‹•
…Šƒ”‰‡ƒ„Ž‡ –‘ –ƒšǡ ‡Ǥ‰Ǥǡ ‰”‹…—Ž–—”ƒŽ ‹…‘‡ ‹• ‡š‡’– ˆ”‘ –ƒšǡ Š‡…‡ǡ ‹ˆ –Š‡ –ƒš’ƒ›‡” ‹…—”• Ž‘•• ˆ”‘
ƒ‰”‹…—Ž–—”ƒŽƒ…–‹˜‹–›ǡ–Š‡•—…ŠŽ‘••…ƒ‘–„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•–ƒ›‘–Š‡”–ƒšƒ„Ž‡‹…‘‡Ǥ
͸Ǥ …‘‡‘••‡•‘ˆ•’‡…‹ϐ‹‡†—•‹‡••ǣ‘••ˆ”‘„—•‹‡•••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘͵ͷ…ƒ‘–„‡•‡–‘ˆˆ
ƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡‡š…‡’–‹…‘‡ˆ”‘•’‡…‹ϐ‹‡†„—•‹‡••ȋ•‡…–‹‘͵ͷ‹•ƒ’’Ž‹…ƒ„Ž‡‹”‡•’‡…–‘ˆ
…‡”–ƒ‹•’‡…‹ϐ‹‡†„—•‹‡••‡•Ž‹‡•‡––‹‰—’ƒ…‘Ž†…Šƒ‹ˆƒ…‹Ž‹–›ǡ•‡––‹‰—’ƒ†‘’‡”ƒ–‹‰™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–›
ˆ‘”•–‘”ƒ‰‡‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡ǡ†‡˜‡Ž‘’‹‰ƒ†„—‹Ž†‹‰ƒŠ‘—•‹‰’”‘Œ‡…–•ǡ‡–…ǤȌ
Income/losses Intra-head Set off
a) Loss from Business or Profession
 ›Ž‘••ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘ȋ‘–Š‡”–Šƒ•’‡…—Žƒ–‹‘„—•‹‡••‘”Ž‘••ˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†
ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•Ȍ…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•––Š‡‹…‘‡ˆ”‘ƒ›‘–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘‹…Ž—†‹‰
–Š‡‹…‘‡ˆ”‘•’‡…—Žƒ–‹‘„—•‹‡••‘”‹…‘‡ˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•Ǥ
 ˆƒ›„—•‹‡••Šƒ•„‡‡†‹•…‘–‹—‡††—”‹‰–Š‡›‡ƒ”ǡ–Š‡Ž‘••ˆ”‘•—…Š„—•‹‡••…ƒƒŽ•‘„‡•‡–Ǧ‘ˆˆˆ”‘–Š‡
‹…‘‡‘ˆ‘–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ
 Š‡Ž‘•••—ˆˆ‡”‡†„›ƒ™Š‘ŽŽ›‘™‡†•—„•‹†‹ƒ”›…‘’ƒ›…ƒ‘–„‡•‡–Ǧ‘ˆˆ„›–Š‡’ƒ”‡–…‘’ƒ›ǡ•‹…‡„‘–Š
ƒ”‡•‡’ƒ”ƒ–‡ƒ••‡••‡‡•Ǥ‹‹Žƒ”Ž›ǡ™Š‡”‡Ž‘••‹…—””‡†„›ƒ™Š‘ŽŽ›‘™‡†•—„•‹†‹ƒ”›…‘’ƒ›‹•”‡‹„—”•‡†„›
–Š‡Š‘Ž†‹‰…‘’ƒ›ǡ–Š‡•—„•‹†‹ƒ”›…‘’ƒ›†‘‡•‘–—•‡–Š‡”‹‰Š––‘…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ–Š‡Ž‘••ǤȏC.I.T
v. Handicraft Handloom Export Corporation (1982) 133 ITR 590 (Delhi)ȐǤ
b) Loss from Speculation Business
 —…ŠŽ‘••…ƒ„‡•‡–Ǧ‘ˆˆ‘Ž›ƒ‰ƒ‹•––Š‡‹…‘‡ˆ”‘•’‡…—Žƒ–‹‘„—•‹‡••Ǥ–‹•‘–‡••‡–‹ƒŽ–Šƒ––Š‡
ƒ–—”‡ ‘ˆ –Š‡ ‘–Š‡” •’‡…—Žƒ–‹‘ –”ƒ•ƒ…–‹‘ —•– „‡ –Š‡ •ƒ‡Ǥ ’‡…—Žƒ–‹˜‡ –”ƒ•ƒ…–‹‘• ‹ †‹ˆˆ‡”‡–
…‘‘†‹–‹‡•ƒ†‹†‹ˆˆ‡”‡–ƒ”‡–•ƒ”‡–‘„‡–”‡ƒ–‡†ƒ•‘‡„—•‹‡••Ǥ‘™‡˜‡”ǡƒŽ‘••ˆ”‘ƒ‹ŽŽ‡‰ƒŽ
•’‡…—Žƒ–‹‘„—•‹‡••…ƒ‘– „‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–‹…‘‡ˆ”‘ƒ›Žƒ™ˆ—Ž•’‡…—Žƒ–‹‘ǤȏC.I.T. v. K.J. Kotecha
107ITR 101 (SC)ȐǤ‹‹Žƒ”Ž›ǡ™Š‡”‡ –Š‡ƒ••‡••‡‡‡ƒ”•…‘‹••‹‘‘•’‡…—Žƒ–‹˜‡–”ƒ•ƒ…–‹‘•ǡŠ‡‹•‘–
‡–‹–Ž‡†–‘•‡–Ǧ‘ˆˆ•’‡…—Žƒ–‹˜‡Ž‘••ƒ‰ƒ‹•–•—…Š…‘‹••‹‘ „‡…ƒ—•‡ –Š‡”‡‹• ‘ ‡Ž‡‡– ‘ˆ •’‡…—Žƒ–‹‘
‹–Š‡…‘‹••‹‘ȏC.I.T. v. Pangal VittalNayak & Co. Pvt. Ltd. (1969) 74 I.T.R. 754 (S.C.)ȐǤ›˜‹”–—‡‘ˆƒ
‡š’Žƒƒ–‹‘ –‘‡…–‹‘͹͵™Š‡”‡ƒ›’ƒ”–‘ˆ–Š‡ „—•‹‡••‘ˆƒ…‘’ƒ›ȋ‘–Š‡”–Šƒƒ…‘’ƒ›™Š‘•‡
‰”‘•• –‘–ƒŽ ‹…‘‡ …‘•‹•–• ƒ‹Ž› ‘ˆ ‹…‘‡ ™Š‹…Š ‹• …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ†•ǣ Dz–‡”‡•– ‘
•‡…—”‹–‹‡•dzǡDz…‘‡ˆ”‘‘—•‡”‘’‡”–›dzǡDzƒ’‹–ƒŽ‰ƒ‹•dzǡDz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǡ‘”ƒ…‘’ƒ›–Š‡
’”‹…‹’ƒŽ „—•‹‡•• ‘ˆ ™Š‹…Š ‹• –Š‡ „—•‹‡•• ‘ˆ „ƒ‹‰ ‘” ‰”ƒ–‹‰ ‘ˆŽ‘ƒ•ƒ†ƒ†˜ƒ…‡•Ȍ…‘•‹•–•‘ˆ–Š‡
’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•‘ˆ‘–Š‡”…‘’ƒ‹‡•ǡ•—…Š…‘’ƒ›•ŠƒŽŽˆ‘” –Š‡’—”’‘•‡‘ˆ–Š‹••‡…–‹‘ȋ‡…–‹‘
͹͵Ȍǡ„‡†‡‡‡†–‘„‡…ƒ””›‹‰‘ƒ•’‡…—Žƒ–‹‘„—•‹‡••–‘–Š‡‡š–‡––‘ ™Š‹…Š–Š‡„—•‹‡••…‘•‹•–•‘ˆ–Š‡
’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•—…Š•Šƒ”‡•Ǥ
Set-Off of Loss from One Head against Income from another Head [Section 71]
ˆ–‡” ƒ‹‰ ‹–”ƒǦŠ‡ƒ† ƒ†Œ—•–‡– ȋ‹ˆ ƒ›Ȍ –Š‡ ‡š– •–‡’ ‹• –‘ ƒ‡ ‹–‡”ǦŠ‡ƒ† ƒ†Œ—•–‡–Ǥ ˆ ‹ ƒ› ›‡ƒ”ǡ –Š‡
–ƒš’ƒ›‡”Šƒ•‹…—””‡†Ž‘••—†‡”‘‡Š‡ƒ†‘ˆ‹…‘‡ƒ†‹•Šƒ˜‹‰‹…‘‡—†‡”‘–Š‡”Š‡ƒ†‘ˆ‹…‘‡ǡ–Š‡Š‡ …ƒ
ƒ†Œ—•––Š‡Ž‘••ˆ”‘‘‡Š‡ƒ†ƒ‰ƒ‹•–‹…‘‡ˆ”‘‘–Š‡”Š‡ƒ†ǡǤ‰Ǥǡ‘••—†‡”–Š‡Š‡ƒ†‘ˆŠ‘—•‡’”‘’‡”–› –‘„‡
ƒ†Œ—•–‡†ƒ‰ƒ‹•–•ƒŽƒ”›‹…‘‡Ǥ
’‡”•‘ƒ›Šƒ˜‡˜ƒ”‹‘—••‘—”…‡•‘ˆ‹…‘‡…‘’—–‡†—†‡”†‹ˆˆ‡”‡–Š‡ƒ†•‘ˆ‹…‘‡Ǥ‘••—†‡”‘‡Š‡ƒ†‘ˆ
‹…‘‡‹•‰‡‡”ƒŽŽ›ƒŽŽ‘™‡†–‘„‡•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡—†‡”ƒ‘–Š‡”Š‡ƒ†Ǥ
‘”‹•–ƒ…‡ǡŠƒ•‘Ž›‘‡’”‘’‡”–›ǡ™Š‹…Š‹•‘……—’‹‡†„›Š‹ƒ†–Š‡Ž‘••‹••ͳǤͷͲŽƒŠǤ‡†‡”‹˜‡••ƒŽƒ”› ‘ˆ•ͳͲ
ŽƒŠ†—”‹‰–Š‡›‡ƒ”Ǥ‡”‡ǡŠ‡…ƒ•‡–‘ˆˆ–Š‡Ž‘••‘ˆ•ͳǤͷͲŽƒŠƒ‰ƒ‹•–Š‹••ƒŽƒ”›‹…‘‡„›ƒ‹‰ ƒ’’”‘’”‹ƒ–‡
†‡…Žƒ”ƒ–‹‘•–‘Š‹•‡’Ž‘›‡”ǡ–Š‡”‡„›ƒ‹‰Š‹•‡––ƒšƒ„Ž‡‹…‘‡•ͺǤͷͲŽƒŠǤ
 322 Lesson 5 Ȉ EP-TL

Š‡’”‘˜‹•‹‘‘ˆ‡…–‹‘͹ͳ”‡ƒ†•ƒ•—†‡”ǣ
ȋƒȌ Ž‘••—†‡”–Š‡Š‡ƒ†Dz…ƒ’‹–ƒŽ‰ƒ‹•dz…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡—†‡”ƒ›‘–Š‡”Š‡ƒ†Ǥ–—•–„‡•‡–‘ˆˆ
‘Ž›ƒ‰ƒ‹•–‹…‘‡ˆ”‘Dz…ƒ’‹–ƒŽ‰ƒ‹•dzǤ
ȋ„Ȍ ‘••—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•––Š‡Š‡ƒ†Dz‹…‘‡
ˆ”‘ƒŽƒ”‹‡•dzǤ
ȋ…Ȍ Š‡”‡ –Š‡ ƒ••‡••‡‡ ‹…—”• ƒ› Ž‘•• —†‡” –Š‡ Š‡ƒ† ‹…‘‡ ˆ”‘ Š‘—•‡ ’”‘’‡”–› ‹– …ƒ „‡ •‡– ‘ˆˆƒ‰ƒ‹•–
–Š‡ ƒ••‡••‡‡ǯ• ƒ› ‘–Š‡” ‹…‘‡ —†‡” ‘–Š‡” Š‡ƒ† †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ”• ™Š‡”‡ •—…Š Ž‘••‹•‘–ˆ—ŽŽ›
ƒ†Œ—•–‡†—†‡”‘–Š‡”Š‡ƒ†•‘ˆ‹…‘‡‹–Š‡•ƒ‡ƒ••‡••‡–›‡ƒ”ǡ–Š‡–Š‡„ƒŽƒ…‡ Ž‘•••ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘
„‡ …ƒ””‹‡† ˆ‘”™ƒ”† ƒ† •‡– ‘ˆˆ ‹ •—„•‡“—‡– ›‡ƒ”• •—„Œ‡…– –‘ ƒ Ž‹‹– ‘ˆ ‡‹‰Š– ƒ••‡••‡– ›‡ƒ”• ƒ‰ƒ‹•–
‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›Ǥ
 ‡…–‹‘͹ͳȋ͵Ȍ–‡”Š‡ƒ†ƒ†Œ—•–‡–‘ˆŽ‘••—†‡”–Š‡Š‡ƒ†‘—•‡”‘’‡”–›ȋ‹Ǥ‡Ǥǡƒ†Œ—•–‡–‘ˆŽ‘••—†‡”
–Š‡Š‡ƒ†‘—•‡”‘’‡”–›ƒ‰ƒ‹•–…‘‡—†‡”ƒ›‘–Š‡”Š‡ƒ†‹–Š‡•ƒ‡›‡ƒ”Ȍ…ƒ‘–‡š…‡‡† •ʹǡͲͲǡͲͲͲˆ‘”
ƒ›ƒ••‡••‡–›‡ƒ”Ǥ‡ƒ‹‹‰Ž‘••…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘„‡•‡–‘ˆˆ‹ˆ—–—”‡ƒ•’‡”’”‘˜‹•‹‘•‘ˆ‡…–‹‘
͹ͳǤȋŠ‡”‡‹•‘”‡•–”‹…–‹‘‘ˆ•ǤʹǡͲͲǡͲͲͲ‹•‡…–‹‘͹ͳȌǤ
ȋ†Ȍ ‘••‹…—””‡†„›ƒƒ••‡••‡‡ˆ”‘ƒ•‘—”…‡ǡ‹…‘‡ˆ”‘™Š‹…Š‹•‡š‡’–ǡ…ƒ‘–„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–‹…‘‡
ˆ”‘ƒ–ƒšƒ„Ž‡•‘—”…‡Ǥ
Š‡”‡ ƒ”‡ …‡”–ƒ‹ ‡š…‡’–‹‘• –‘ –Š‡ ‰‡‡”ƒŽ ”—Ž‡ –Šƒ– ‘•• —†‡” ‘‡ Š‡ƒ† ‘ˆ ‹…‘‡ ‹• ƒŽŽ‘™‡† –‘ „‡ •‡– ‘ˆˆ
ƒ‰ƒ‹•–‹…‘‡—†‡”ƒ‘–Š‡”Š‡ƒ†Ǥ
ƒȌ ‘••ˆ”‘•’‡…—Žƒ–‹˜‡„—•‹‡••…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡Ǥ‘™‡˜‡”ǡ‘Ǧ•’‡…—Žƒ–‹˜‡„—•‹‡••
Ž‘••…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡ˆ”‘•’‡…—Žƒ–‹˜‡„—•‹‡••Ǥ ‘”šƒ’Ž‡ǣ‘—•‡’”‘’‡”–›Ž‘••…ƒ„‡•‡–Ǧ‘ˆˆ
ƒ‰ƒ‹•–’‡…—Žƒ–‹˜‡…‘‡•„—–•’‡…—Žƒ–‹‘Ž‘••…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–‘—•‡’”‘’‡”–›ȌǤ
„Ȍ —•‹‡••Ž‘••…ƒ‘–„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–•ƒŽƒ”›‹…‘‡Ǥȋ–…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–‘–Š‡”‹…‘‡•ȌǤ
…Ȍ ‘••—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•ȋ‘”Ȍ…ƒ‘–„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”Š‡ƒ†Š‘™‡˜‡”‘••ˆ”‘
‘–Š‡”Š‡ƒ†•…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–ƒ’‹–ƒŽ
ƒ‹•Ǥ ‘”ƒ‹•–ƒ…‡ǡ‘—•‡”‘’‡”–›Ž‘••…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–

„—–‘”…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ǡ‹Ǥ‡ǤǡŠ‘—•‡’”‘’‡”–›‹…‘‡Ǥ
†Ȍ ‘Ž‘••…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ•—ƒŽ‹…‘‡•—…Šƒ•™‹‹‰•ˆ”‘Ž‘––‡”‹‡•ǡ…”‘••™‘”†’—œœŽ‡•ǡ”ƒ…‡‹…Ž—†‹‰
Š‘”•‡”ƒ…‡ǡ…ƒ”†‰ƒ‡ǡƒ†ƒ›‘–Š‡”‰ƒ‡‘ˆƒ›•‘”–‘”ˆ”‘‰ƒ„Ž‹‰‘”„‡––‹‰‘ˆƒ› ˆ‘”‘”ƒ–—”‡Ǥ
‡Ȍ ‘‡š’‡•‡•…ƒ„‡…Žƒ‹‡†ƒ‰ƒ‹•–…ƒ•—ƒŽ‹…‘‡Ǥ
ˆȌ ‘••ˆ”‘–Š‡„—•‹‡••‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡Ǥ
‰Ȍ ‘•• ˆ”‘ ƒ ‡š‡’–‡† •‘—”…‡ …ƒ‘– „‡ •‡– ‘ˆˆ ȋ‡Ǥ‰Ǥ Šƒ”‡ ‘ˆ Ž‘•• ‘ˆ ϐ‹”ǡ ƒ‰”‹…—Ž–—”ƒŽ ‹…‘‡ǡ
…—Ž–‹˜ƒ–‹‘‡š’‡•‡•ȌǤ
ŠȌ ‘••ˆ”‘„—•‹‡•••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘͵ͷ…ƒ‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡ȋ•‡…–‹‘͵ͷ
‹•ƒ’’Ž‹…ƒ„Ž‡ ‹”‡•’‡…–‘ˆ…‡”–ƒ‹•’‡…‹ϐ‹‡†„—•‹‡••‡•Ž‹‡•‡––‹‰—’ƒ…‘Ž†…Šƒ‹ˆƒ…‹Ž‹–›ǡ•‡––‹‰ —’ ƒ†
‘’‡”ƒ–‹‰ ™ƒ”‡Š‘—•‹‰ ˆƒ…‹Ž‹–› ˆ‘” •–‘”ƒ‰‡ ‘ˆ ƒ‰”‹…—Ž–—”ƒŽ ’”‘†—…‡ǡ †‡˜‡Ž‘’‹‰ ƒ† „—‹Ž†‹‰ Š‘—•‹‰
’”‘Œ‡…–•ǡ‡–…ǤȌ
–ƒ›„‡‘–‡†–Šƒ–„‡ˆ‘”‡ƒ‹‰‹–‡”ǦŠ‡ƒ†ƒ†Œ—•–‡–ǡ–Š‡–ƒš’ƒ›‡”Šƒ•–‘ϐ‹”•–ƒ‡‹–”ƒǦŠ‡ƒ†ƒ†Œ—•–‡–Ǥ
CARRY-FORWARD OF LOSSES
ƒ› –‹‡• ‹– ƒ› Šƒ’’‡ –Šƒ– ƒˆ–‡” ƒ‹‰ ‹–”ƒǦŠ‡ƒ† ƒ† ‹–‡”ǦŠ‡ƒ† ƒ†Œ—•–‡–•ǡ •–‹ŽŽ –Š‡ Ž‘•• ”‡ƒ‹•
—ƒ†Œ—•–‡†Ǥ —…Š —ƒ†Œ—•–‡† Ž‘•• …ƒ „‡ …ƒ””‹‡† ˆ‘”™ƒ”† –‘ ‡š– ›‡ƒ” ˆ‘” ƒ†Œ—•–‡– ƒ‰ƒ‹•– •—„•‡“—‡–
›‡ƒ”ȋ•Ȍ‹…‘‡Ǥ‡’ƒ”ƒ–‡’”‘˜‹•‹‘•Šƒ˜‡„‡‡ˆ”ƒ‡†—†‡”–Š‡…‘‡Ǧ–ƒšƒ™ˆ‘”…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘•• —†‡”
†‹ˆˆ‡”‡–Š‡ƒ†•‘ˆ‹…‘‡Ǥ‘••‡•…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡‹…‘‡‘ˆˆ‘ŽŽ‘™‹‰›‡ƒ”•’”‘˜‹†‡†–Šƒ––Š‡›Šƒ˜‡„‡‡
•—ˆˆ‡”‡†„›ƒ••‡••‡‡ƒ††‡–‡”‹‡†‹’—”•—ƒ…‡‘ˆƒ”‡–—”ϐ‹Ž‡†„›–Š‡ƒ•‡••‡‡Ǥ —”–Š‡”ǡ…ƒ””› ˆ‘”™ƒ”†‘ˆŽ‘••‡•
ȋ‘–Š‡”–ŠƒŽ‘••ˆ”‘Š‘—•‡’”‘’‡”–›ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘Ȍ‹•’‡”‹••‹„Ž‡‹ˆ–Š‡”‡–—” ‘ˆ ‹…‘‡ ˆ‘” –Š‡
›‡ƒ”ǡ ‹ ™Š‹…Š Ž‘•• ‹• ‹…—””‡†ǡ ‹• ϐ‹Ž‡† ‹ –‹‡Ǥ Š‡ Žƒ–‡ ϐ‹Ž‹‰ ‘ˆ ”‡–—” •Š‘—Ž† ‘– ‹’ƒ…– –Š‡ •–ƒ–—• ‘ˆ …ƒ””›
ˆ‘”™ƒ”†‘ˆŽ‘••‘ˆ’”‡˜‹‘—•›‡ƒ”•Ǥ
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 323

Š‡ˆ‘ŽŽ‘™‹‰Ž‘••‡•…‘—Ž†„‡…ƒ””‹‡†ˆ‘”™ƒ”†ǣ
ȋ‹Ȍ ‘••‹‘Ǧ•’‡…—Žƒ–‹‘„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ
ȋ‹‹Ȍ ‘••‹•’‡…—Žƒ–‹‘„—•‹‡••Ǥ
ȋ‹‹‹Ȍ ‘••‹–”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡–•ȏ™Š‡–Š‡”•Š‘”–Ǧ–‡”‘”Ž‘‰Ǧ–‡”ȐǤ
ȋ‹˜Ȍ ‘••ˆ”‘ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰‘ˆ”ƒ…‡Š‘”•‡•Ǥ
ȋ˜Ȍ ‘••—†‡”–Š‡Š‡ƒ†Ǯ…‘‡ˆ”‘‘—•‡”‘’‡”–›ǯǤ
‘™‡˜‡”ǡŽ‘••‡••—ˆˆ‡”‡†—†‡”–Š‡ˆ‘ŽŽ‘™‹‰Š‡ƒ†•ƒ”‡‘–ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆǣ
ȋ‹Ȍ ‘••‡•—†‡”–Š‡Š‡ƒ†Ǯ•ƒŽƒ”‹‡•ǯǤ
ȋ‹‹Ȍ ‘••‡•—†‡”–Š‡Š‡ƒ†Ǯ…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǯȋ‡š…‡’–‹‰Ž‘•••—ˆˆ‡”‡†ˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†
ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•ȌǤ
(A) Loss in Non-Speculation Business [Section 72]
– •ŠƒŽŽ „‡ •‡–Ǧ‘ˆˆ ƒ‰ƒ‹•– –Š‡ ’”‘ϐ‹–• ƒ† ‰ƒ‹•ǡ ‹ˆ ƒ›ǡ ‘ˆ ƒ› „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ …ƒ””‹‡† ‘ „› Š‹ ƒ†
ƒ••‡••ƒ„Ž‡ˆ‘”–Šƒ–ƒ••‡••‡–›‡ƒ”Ǥ
”‘–Š‹•‹–ˆ‘ŽŽ‘™•–Šƒ––Š‡Ž‘••ˆ”‘‘Ǧ•’‡…—Žƒ–‹‘„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡‹…‘‡‘ˆ–Š‡
„—•‹‡••‹™Š‹…Š‹–™ƒ••—ˆˆ‡”‡†‘”ƒ›‘–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘‡‹–Š‡”‘Ž†‘”‡™‹…Ž—†‹‰•’‡…—Žƒ–‹‘„—•‹‡••
‹…‘‡‘”ˆ”‘ƒ›‘–Š‡”Š‡ƒ†ǡ•—…Šƒ•Š‘—•‡’”‘’‡”–›ǡ‘”‘–Š‡”•‘—”…‡•ǡ‹ˆ–Š‡‹…‘‡—†‡”–Š‹• Š‡ƒ†ˆ‘”•’ƒ”–
‘ˆ–Š‡–”ƒ†‹‰ƒ…–‹˜‹–‹‡•‘ˆ–Š‡ƒ••‡••‡‡ǤȏWestern States Trading Co. (P) Ltd. v. C.I.T. (1971) 80 ITR 21 (SC)ȐǤ
Š‡Ž‘••…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡„—•‹‡••’”‘ϐ‹–•‘ˆ–Š‡›‡ƒ”’”‘˜‹†‡†•—…Š’”‘ϐ‹–•ƒ”‡ƒ•‡••ƒ„Ž‡–‘–ƒšǤˆ–Š‡’”‘ϐ‹–•
ƒ”‡‡š‡’–ˆ”‘–ƒšˆ‘”ƒ›”‡ƒ•‘ǡ‘•‡–Ǧ‘ˆˆ…ƒ„‡ƒ†‡„›–Š‡‹…‘‡Ǧ–ƒš‘ˆϐ‹…‡”ƒ‰ƒ‹•–•—…Š’”‘ϐ‹–•Ǥ
Conditions for carry forward and set-off of business loss
ȋ‹Ȍ Š‡”‹‰Š–‘ˆ…ƒ””›Ǧˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ‹•ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡•ƒ‡ƒ••‡••‡‡™Š‘Šƒ••—•–ƒ‹‡†–Š‡Ž‘••ǤŠ‘Ž†‹‰
…‘’ƒ›Š‘™‡˜‡”ǡ…ƒ‘–…Žƒ‹–‘…ƒ””›ˆ‘”™ƒ”†–Š‡Ž‘••‡•ǡ‹ˆƒ›ǡ‹…—””‡†„›‹–•™Š‘ŽŽ›‘™‡† •—„•‹†‹ƒ”›
…‘’ƒ›Ǥš…‡’–‹‘•–‘–Š‹•”—Ž‡ƒ”‡
ȋƒȌ …ƒ•‡• ‘ˆ •—……‡••‹‘ „› ‹Š‡”‹–ƒ…‡ ȏƒ Ž‘•• ‹…—””‡† „› –Š‡ ˆƒ–Š‡” ‹ –Š‡ …‘—”•‡ ‘ˆ …ƒ””›‹‰ ‘ Š‹•
„—•‹‡••…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ„›Š‹••‘ǡ‹ˆ–Š‡•‘•—……‡‡†•–‘–Š‡„—•‹‡••‘ˆŠ‹•ˆƒ–Š‡”
‘ƒ……‘—–‘ˆ–Š‡ˆƒ–Š‡”ǯ•†‡ƒ–Š„—–‘–‘–Š‡”™‹•‡Ȑ
ȋ„Ȍ  ƒ……——Žƒ–‡†„—•‹‡••Ž‘••‘ˆƒƒƒŽ‰ƒƒ–‹‰…‘’ƒ›—†‡”‡…–‹‘͹ʹ
ȋ…Ȍ –Š‡ •Šƒ”‡ ‘ˆ Ž‘•• ‘ˆ ’ƒ”–‡”•Š‹’ –ƒ‡ ‘˜‡” „› ‘‡ ‘ˆ ‹–• ’ƒ”–‡”• …ƒ ƒŽ•‘ „‡ •‡–Ǧ‘ˆˆ „› –Š‡ ’ƒ”–‡”
ȏDwarkadass Leeladhar v. CIT (1963) 47 ITR 619 (Ker.)Ȑ

 ‘™‡˜‡”ǡŽ‘••‹…—””‡†„› …ƒ‘–„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆƒˆ–‡”‹–•’ƒ”–‹–‹‘ƒ‰ƒ‹•–‹…‘‡‘ˆ ϐ‹”

ˆ‘”‡†–Š‡”‡ƒˆ–‡”„›…‡”–ƒ‹…‘’ƒ”…‡‡”•ȏKeshrichandBhanabhai v. CIT(1951) 20ITR 201 (Bom.)ȐǤ
ȋ‹‹Ȍ Š‡ Ž‘•• …ƒ „‡ …ƒ””‹‡† ˆ‘”™ƒ”† –‘ ƒ ƒš‹— ‘ˆ ‡‹‰Š– …‘•‡…—–‹˜‡ ƒ••‡••‡– ›‡ƒ”• ‹‡†‹ƒ–‡Ž›
•—……‡‡†‹‰–Š‡ƒ••‡••‡–›‡ƒ”ˆ‘”™Š‹…Š–Š‡Ž‘••™ƒ•ϐ‹”•–…‘’—–‡†Ǥ
 …ƒ•‡‘ˆƒ„—•‹‡••‘™Š‹…Š”‡Šƒ„‹Ž‹–ƒ–‹‘ƒŽŽ‘™ƒ…‡Šƒ•„‡‡ƒŽŽ‘™‡†ǡ–Š‡’”‡˜‹‘—•Ž‘••‡•ƒ”‡ ƒŽŽ‘™‡†
–‘ „‡ …ƒ””‹‡† ˆ‘”™ƒ”† –‘ –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡ „—•‹‡••™ƒ•
•‘”‡˜‹˜‡†‘””‡Ǧ‡•–ƒ„Ž‹•Š‡†ƒ†ƒ”‡ƒŽŽ‘™‡†–‘„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡’”‘ϐ‹–‘ˆ–Šƒ– ƒ••‡••‡–›‡ƒ”Ǥ›
„ƒŽƒ…‡‘ˆŽ‘••…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡•—……‡‡†‹‰•‡˜‡ƒ••‡••‡– ›‡ƒ”•Ǥ
ȋ‹‹‹Ȍ Š‡”‡ ƒ› —ƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘ ‘” …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ ‘ •…‹‡–‹ϐ‹… ”‡•‡ƒ”…Š Šƒ• „‡‡ „”‘—‰Š–
ˆ‘”™ƒ”†ƒŽ‘‰™‹–Š„—•‹‡••Ž‘••ǡ–Š‡„—•‹‡••Ž‘•••ŠƒŽŽϐ‹”•–„‡•‡–Ǧ‘ˆˆǤ
Order of Set-off of losses
…ƒ•‡™Š‡”‡’”‘ϐ‹–•ƒ”‡‹•—ˆϐ‹…‹‡––‘ƒ„•‘”„„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‡•ǡ…—””‡–†‡’”‡…‹ƒ–‹‘ƒ†…—””‡–„—•‹‡••
Ž‘••‡•ǡ–Š‡•ƒ‡•Š‘—Ž†„‡†‡†—…–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰‘”†‡”ǣ
 324 Lesson 5 Ȉ EP-TL

ȋƒȌ —””‡–•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š‡š’‡†‹–—”‡ȏ—†‡”‡…–‹‘͵ͷȋͳȌȐ
ȋ„Ȍ —””‡–‡’”‡…‹ƒ–‹‘ȏ—†‡”‡…–‹‘͵ʹȋͳȌȐ
ȋ…Ȍ ”‘—‰Š–ˆ‘”™ƒ”†„—•‹‡••Ž‘••‡•ȏ—†‡”‡…–‹‘͹ʹȋͳȌȐ
ȋ†Ȍ ƒ„•‘”„‡†ˆƒ‹Ž›’Žƒ‹‰’”‘‘–‹‘…ƒ’‹–ƒŽ‡š’‡†‹–—”‡ȏ—†‡”‡…–‹‘͵͸ȋͳȌȋ‹šȌȐ
ȋ‡Ȍ ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘ȏ—†‡”‡…–‹‘͵ʹȋʹȌȐ
ȋˆȌ ƒ„•‘”„‡†•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š‡š’‡†‹–—”‡ȏ—†‡”‡…–‹‘͵ͷȋͶȌȐ
(B) Loss in Speculation Business [Section 73]
Š‡”‡ǡˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ǡƒ›Ž‘••…‘’—–‡†‹”‡•’‡…–‘ˆƒ•’‡…—Žƒ–‹‘„—•‹‡••Šƒ•‘–„‡‡™Š‘ŽŽ› •‡–Ǧ‘ˆˆ
ƒ‰ƒ‹•––Š‡’”‘ϐ‹–•‘ˆƒ‘–Š‡”•’‡…—Žƒ–‹‘„—•‹‡••ǡ‹–•ŠƒŽŽ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡ˆ‘ŽŽ‘™‹‰ƒ••‡••‡–›‡ƒ”ƒ†
•ŠƒŽŽ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡’”‘ϐ‹–•‘ˆƒ›•’‡…—Žƒ–‹‘„—•‹‡••…ƒ””‹‡†‘„›Š‹ƒ†ƒ••‡••ƒ„Ž‡ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”Ǥ
Speculative Business
š’Žƒƒ–‹‘ –‘ •‡…–‹‘ ͹͵ ’”‘˜‹†‡• –Šƒ– ™Š‡”‡ ƒ› ’ƒ”– ‘ˆ –Š‡ „—•‹‡•• ‘ˆ ƒ …‘’ƒ› ȋ‘–Š‡” –Šƒ ƒ …‘’ƒ›
™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡…‘•‹•–•ƒ‹Ž›‘ˆ‹…‘‡™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†•Dz–‡”‡•–‘•‡…—”‹–‹‡•dzǡ
Dz…‘‡ ˆ”‘ Š‘—•‡ ’”‘’‡”–›dzǡ Dzƒ’‹–ƒŽ ‰ƒ‹•dz ƒ† Dz…‘‡ ˆ”‘ ‘–Š‡” •‘—”…‡•dzǡ ‘” ƒ …‘’ƒ› –Š‡ ’”‹…‹’ƒŽ
„—•‹‡•• ‘ˆ ™Š‹…Š ‹• –Š‡ „—•‹‡•• ‘ˆ –”ƒ†‹‰ ‹ •Šƒ”‡• ‘” „ƒ‹‰ ‘” –Š‡ ‰”ƒ–‹‰ ‘ˆ Ž‘ƒ• ƒ† ƒ†˜ƒ…‡•Ȍ
…‘•‹•–•‹–Š‡’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•‘ˆ‘–Š‡”…‘’ƒ‹‡•ǡ•—…Š…‘’ƒ›•ŠƒŽŽǡˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ
„‡†‡‡‡†–‘„‡…ƒ””›‹‰‘ƒ•’‡…—Žƒ–‹‘„—•‹‡••–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡„—•‹‡••…‘•‹•–•‘ˆ–Š‡ ’—”…Šƒ•‡ƒ†
•ƒŽ‡‘ˆ•—…Š•Šƒ”‡•Ǥ
—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘Ͷ͵†‡ϐ‹‡•–Š‡–‡”•’‡…—Žƒ–‹˜‡–”ƒ•ƒ…–‹‘ƒ•ƒ–”ƒ•ƒ…–‹‘‹™Š‹…Šƒ…‘–”ƒ…–ˆ‘”
’—”…Šƒ•‡ ‘” •ƒŽ‡ ‘ˆ ƒ› …‘‘†‹–›ǡ ‹…Ž—†‹‰ •–‘…• ƒ† •Šƒ”‡•ǡ ‹• •‡––Ž‡† ‘–Š‡”™‹•‡ –Šƒ „› ™ƒ› ‘ˆ ƒ…–—ƒŽ
†‡Ž‹˜‡”›Ǥ ‘™‡˜‡”ǡ –Š‡ ’”‘˜‹•‘ –‘ •—„Ǧ•‡…–‹‘ ȋͷȌ ‘ˆ •‡…–‹‘ Ͷ͵ ‡š‡’–•ǡ ‹–‡” ƒŽ‹ƒǡ –”ƒ•ƒ…–‹‘ ‹ ”‡•’‡…– ‘ˆ
–”ƒ†‹‰ ‹ †‡”‹˜ƒ–‹˜‡• ‘ ƒ ”‡…‘‰‹•‡† •–‘… ‡š…Šƒ‰‡ ƒ† …‘‘†‹–› †‡”‹˜ƒ–‹˜‡ ™Š‹…Š ƒ”‡ …Šƒ”‰‡ƒ„Ž‡ –‘
…‘‘†‹–›–”ƒ•ƒ…–‹‘–ƒšǡˆ”‘‹–•ƒ„‹–Ǥ

Carry forward of losses in Speculative Business

…ƒ•‡‘ˆ•’‡…—Žƒ–‹‘Ž‘••‡˜‡‹ˆ–Š‡’ƒ”–‹…—Žƒ”•’‡…—Žƒ–‹‘„—•‹‡••‹™Š‹…Š–Š‡”‡‹•Ž‘••‹•†‹•…‘–‹—‡†ǡ –Š‹•
Ž‘••…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘„‡•‡–Ǧ‘ˆˆ‹–Š‡•—……‡‡†‹‰›‡ƒ”ƒ‰ƒ‹•––Š‡’”‘ϐ‹–•‘ˆƒ›‘–Š‡”•’‡…—Žƒ–‹‘„—•‹‡••Ǥ
Š‹•Ž‘••…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘ƒƒš‹—‘ˆfour consecutive assessment years ‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰–Š‡
ƒ••‡••‡–›‡ƒ”ˆ‘”™Š‹…Š–Š‡Ž‘••™ƒ•ϐ‹”•–…‘’—–‡†Ǥ
‘™‡˜‡”ǡ–Š‡Ž‘••ˆ”‘ƒ‹ŽŽ‡‰ƒŽ•’‡…—Žƒ–‹‘„—•‹‡••‘”Ž‘••‹…—””‡†‹•’‡…—Žƒ–‹‘„—•‹‡••‹„ƒ‡†‹–‡• …ƒ
„‡ ‡‹–Š‡” •‡–Ǧ‘ˆˆ ƒ‰ƒ‹•– ‹…‘‡ ˆ”‘ ƒ› Žƒ™ˆ—Ž •’‡…—Žƒ–‹‘ „—•‹‡•• ‘” …ƒ ‹– „‡ …ƒ””‹‡† ˆ‘”™ƒ”† ˆ‘”„‡‹‰
•‡–Ǧ‘ˆˆ‹–Š‡•—„•‡“—‡–›‡ƒ”ƒ‰ƒ‹•–‹…‘‡‡˜‡ˆ”‘ƒ‹ŽŽ‡‰ƒŽ•’‡…—Žƒ–‹‘„—•‹‡••„‡…ƒ—•‡–Š‡Žƒ™ƒ••—‡•–Šƒ–ƒ›
‹ŽŽ‡‰ƒŽ„—•‹‡••†‹‡•™‹–ŠƒŽŽ‹–•Ž‘••‡•‹–Š‡•ƒ‡›‡ƒ”ȏCIT v. Kurji Jinabhai Kotecha (1977) 107 ITR 101 (SC)ȐǤ
Š‡”‡ ƒ› —ƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘ ‘” …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ ‘ •…‹‡–‹ϐ‹… ”‡•‡ƒ”…Š Šƒ• „‡‡ „”‘—‰Š– ˆ‘”™ƒ”†
ƒŽ‘‰™‹–Š•’‡…—Žƒ–‹‘Ž‘••ǡ–Š‡•’‡…—Žƒ–‹‘Ž‘•••ŠƒŽŽϐ‹”•–„‡•‡–Ǧ‘ˆˆǤ
‘‡–‹‡•–Š‡”‡ƒ›„‡„”‘—‰Š–Ǧˆ‘”™ƒ”† •’‡…—Žƒ–‹‘Ž‘••ƒ†…—””‡–›‡ƒ”ǯ•‘Ǧ•’‡…—Žƒ–‹‘ „—•‹‡••Ž‘••Ǥ
‘™ –Š‡ ’”‘„Ž‡ ƒ”‹•‡• ™Š‡–Š‡” –Š‡ „”‘—‰Š– ˆ‘”™ƒ”† •’‡…—Žƒ–‹‘ Ž‘•• •Š‘—Ž† „‡ ƒ†Œ—•–‡† ˆ‹”•– ƒ‰ƒ‹•– –Š‡
…—””‡–›‡ƒ”ǯ••’‡…—Žƒ–‹‘‹…‘‡‘”…—””‡–›‡ƒ”ǯ•‘Ǧ•’‡…—Žƒ–‹˜‡„—•‹‡••Ž‘•••Š‘—Ž†„‡•‡–Ǧ‘ˆˆˆ‹”•–ƒ‰ƒ‹•–
–Š‡…—””‡–›‡ƒ”ǯ••’‡…—Žƒ–‹˜‡‹…‘‡Ǥ……‘”†‹‰–‘–Š‡ƒ†‹‹•–”ƒ–‹˜‡‹•–”—…–‹‘•–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›
ƒŽŽ‘™–Š‡ƒ••‡••‡‡ǣ
ȋ‹Ȍ ‡‹–Š‡” –‘ ϐ‹”•– •‡–Ǧ‘ˆˆ –Š‡ •’‡…—Žƒ–‹‘ Ž‘•• …ƒ””‹‡† ˆ‘”™ƒ”† ˆ”‘ ƒ ‡ƒ”Ž‹‡” ›‡ƒ” ƒ‰ƒ‹•– –Š‡ •’‡…—Žƒ–‹‘
’”‘ϐ‹–•‘ˆ–Š‡…—””‡–›‡ƒ”ƒ†–Š‡–‘•‡–Ǧ‘ˆˆ–Š‡…—””‡–›‡ƒ”ǯ•Ž‘••‡•ƒ‰ƒ‹•–‘–Š‡”•‘—”…‡•ƒ†ƒ‰ƒ‹•– –Š‡
”‡ƒ‹‹‰’ƒ”–ǡ‹ˆƒ›ǡ‘ˆ–Š‡…—””‡–›‡ƒ”ǯ••’‡…—Žƒ–‹‘’”‘ϐ‹–•Ǣ‘”
ȋ‹‹Ȍ –‘ϐ‹”•–•‡–Ǧ‘ˆˆ–Š‡…—””‡–›‡ƒ”ǯ•Ž‘••‡•ˆ”‘‘Ǧ•’‡…—Žƒ–‹‘„—•‹‡••ƒ†‘–Š‡”•‘—”…‡•ƒ‰ƒ‹•––Š‡…—””‡–
›‡ƒ”ǯ• •’‡…—Žƒ–‹‘ ’”‘ϐ‹–• ƒ† –Š‡ –‘ •‡–Ǧ‘ˆˆ –Š‡ …ƒ””‹‡† ˆ‘”™ƒ”† •’‡…—Žƒ–‹‘ Ž‘••‡• ‘ˆ –Š‡ ‡ƒ”Ž‹‡” ›‡ƒ”
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 325

ƒ‰ƒ‹•– –Š‡ ”‡ƒ‹‹‰ ’ƒ”–ǡ ‹ˆ ƒ›ǡ ‘ˆ –Š‡ …—””‡– ›‡ƒ”ǯ• •’‡…—Žƒ–‹‘ ’”‘ϐ‹–•ǡ ™Š‹…Š‡˜‡” ‹• ƒ†˜ƒ–ƒ‰‡‘—•–‘
–Š‡ƒ••‡••‡‡Ǥ
Š‡”‡ ƒƒ••‡••‡‡Šƒ•„”‘—‰Š–ˆ‘”™ƒ”†•’‡…—Žƒ–‹˜‡Ž‘••ˆ”‘Š‹•‹†‹˜‹†—ƒŽ„—•‹‡••ƒ††—”‹‰–Š‡…—””‡–›‡ƒ”
Š‡”‡…‡‹˜‡••‘‡•’‡…—Žƒ–‹˜‡‰ƒ‹•ˆ”‘ƒϐ‹”‹™Š‹…ŠŠ‡‹•ƒ’ƒ”–‡”ǡ–Š‡„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••…ƒ„‡•‡–Ǧ‘ˆˆ
ƒ‰ƒ‹•––Š‡•’‡…—Žƒ–‹˜‡’”‘ϐ‹–•”‡…‡‹˜‡†ˆ”‘–Š‡ϐ‹”‹‹Žƒ”Ž›ǡ™Š‡”‡ƒ•’‡…—Žƒ–‹‘„—•‹‡••‹•…ƒ””‹‡†‘„›•‘Ž‡
’”‘’”‹‡–‘”ƒ†ƒˆ–‡”Š‹•†‡ƒ–Š–Š‡„—•‹‡••‹•…‘–‹—‡†„›Ž‡‰ƒŽŠ‡‹”•ˆ‘”‹‰’ƒ”–‡”•Š‹’ǡ–Š‡ϐ‹”‹•‡–‹–Ž‡†–‘
…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ•—…ŠŽ‘••ǤȏC.I.T. v. Madhukant M. Mehta (1981) 132 ITR 159 (Guj.)ȐǤ

CASE LAW
Where assessment was reopened on ground that assesse had booked contrived losses to the extent of Rs.
16.51 lakhs through NMCE platform operated by ‘R’. In view of the fact that assesse had treated said sum
ƒ• ‹…‘‡ ƒ† ‘– Ž‘••ǡ ”‡ƒ•‘ ”‡…‘”†‡† „› ••‡••‹‰ ˆϔ‹…‡” ˆ‘” ”‡‘’‡‹‰ ƒ••‡••‡– ™ƒ• ’ƒŽ’ƒ„Ž›
incorrect and, thus, impugned re-assessment proceedings were to be quashed [Assessment year 2011-12]
[in favour of assesse]
Narendrakumar Mansukhbhai Patel v. ITO [2018] (Guarat)
Facts of the Case: Š‡ƒ••‡••‡™ƒ•‡‰ƒ‰‡†‹–”ƒ†‹‰ƒ…–‹˜‹–‹‡•Ǥ ‘”–Š‡”‡Ž‡˜ƒ–›‡ƒ”ǡ–Š‡ƒ••‡••‡‡Šƒ†ϐ‹Ž‡†
”‡–—” ‘ˆ ‹…‘‡ ™Š‹…Š ™ƒ• ƒ……‡’–‡† „› –Š‡ ”‡˜‡—‡ ƒ—–Š‘”‹–‹‡• —†‡” •‡…–‹‘ ͳͶ͵ȋͳȌ ™‹–Š‘—– •…”—–‹›Ǥ
—„•‡“—‡–Ž›ǡ –Š‡ ••‡••‹‰ ˆϐ‹…‡” ”‡…‡‹˜‡† ‹ˆ‘”ƒ–‹‘ –Šƒ– ‘‡ Ǯǯǡ ƒ …‘‘†‹–› –”ƒ†‡” ™ƒ• ‹†—Ž‰‹‰ ‹
„‘‘‹‰ …‘–”‹˜‡† Ž‘••‡• „› —–‹Ž‹œ‹‰  ’Žƒ–ˆ‘”Ǥ ‡ ˆ—”–Š‡” ‘–‡†ǡ –Šƒ– –Š‡ ƒ••‡•‡‡ Šƒ† „‘‘‡† •—…Š
…‘–”‹˜‡† Ž‘••‡• –‘ –Š‡ ‡š–‡– ‘ˆ •Ǥ ͳ͸Ǥͷͳ ŽƒŠ• –Š”‘—‰Š  ’Žƒ–ˆ‘” ‘’‡”ƒ–‡† „› ǯǯǤ ‡ –Š—• ‹‹–‹ƒ–‡†
”‡ƒ••‡••‡–’”‘…‡‡†‹‰•Ǥ……‘”†‹‰–‘–Š‡ƒ••‡••‡‡ǡŠ‡Šƒ†‡˜‡”…Žƒ‹‡†Ž‘••‘ˆ•Ǥͳ͸ǤͷͳŽƒŠ•ƒ†ǡ‹ˆƒ…–ǡ
•ƒ‹†ϐ‹‰—”‡ƒ’’‡ƒ”‹‰‹Š‹•„ƒŽƒ…‡•Š‡‡–™ƒ•‘…”‡†‹–•‹†‡ǤŠ‡ƒ••‡••‡‡ˆ—”–Š‡”•—„‹––‡†–Šƒ–Š‡Šƒ†‹ˆƒ…–
”‡…‡‹˜‡†•ƒ‹†•—‘ˆ•Ǥͳ͸ǤͷͳŽƒŠ•ƒ†‘–•—ˆˆ‡”‡†•—…ŠƒŽ‘••ǡƒ•ƒŽŽ‡‰‡†Ǥ
Judgement:
‡Ž†–Šƒ–•‹…‡–Š‡”‡™ƒ•‘–Š‹‰‘”‡…‘”†•Š‘™‹‰–Šƒ–•ƒ‹†•—‘ˆ•Ǥͳ͸ǤͷͳŽƒŠ•™ƒ•ƒŽ‘••…Žƒ‹‡†„›–Š‡
ƒ••‡••‡‡ǡ”‡ƒ•‘”‡…‘”†‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”ˆ‘””‡Ǧ‘’‡‹‰ƒ••‡••‡–™ƒ•’ƒŽ’ƒ„Ž›‹…‘””‡…–ƒ†ǡ–Š—•ǡ
‹’—‰‡†”‡Ǧƒ••‡••‡–’”‘…‡‡†‹‰•™‡”‡–‘„‡“—ƒ•Š‡†Ǥ

ȋȌƒ””› ‘”™ƒ”†ƒ†‡–ˆˆ‘ˆ‘••‡•„›’‡…‹ϐ‹‡†—•‹‡••ȏ‡…–‹‘͹͵Ȑ
ȋͳȌ ›Ž‘••‘ˆƒ›•’‡…‹ϐ‹‡†„—•‹‡••‹•‡…–‹‘͵ͷ•ŠƒŽŽ‘–„‡•‡–‘ˆˆ‡š…‡’–ƒ‰ƒ‹•–’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒ›
‘–Š‡”•’‡…‹ϐ‹‡†„—•‹‡••Ǥ
ȋʹȌ Š‡”‡ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ƒ›Ž‘••…‘’—–‡†‘ˆ–Š‡•’‡…‹ϐ‹‡†„—•‹‡••Šƒ•‘–„‡‡™Š‘ŽŽ›•‡–‘ˆˆǡ–Š‡
Ž‘••‘–•‡–‘ˆˆ•ŠƒŽŽ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡ˆ‘ŽŽ‘™‹‰ƒ••‡••‡–›‡ƒ”ǡƒ†
ȋ‹Ȍ ‹–•ŠƒŽŽ„‡•‡–‘ˆˆƒ‰ƒ‹•––Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆƒ›•’‡…‹ϐ‹‡†„—•‹‡••…ƒ””‹‡†‘„›Š‹Ǣƒ†
ȋ‹‹Ȍ ‹ˆ –Š‡ Ž‘•• …ƒ‘– „‡ ™Š‘ŽŽ› •‡– ‘ˆˆǡ –Š‡ ƒ‘—– ‘ˆ Ž‘•• ‘– •‡– ‘ˆˆ •ŠƒŽŽ „‡ …ƒ””‹‡† ˆ‘”™ƒ”† –‘ –Š‡
ˆ‘ŽŽ‘™‹‰ƒ••‡••‡–›‡ƒ”ƒ†•‘‘Ǥ

(D) Set-Off and Carry Forward of Capital Losses [Section 74]

Š‡”‡ǡ‹”‡•’‡…–‘ˆƒ›ƒ••‡••‡–›‡ƒ”ǡ–Š‡‡–”‡•—Ž–‘ˆ–Š‡…‘’—–ƒ–‹‘—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ‰ƒ‹•dz‹•ƒŽ‘••
–‘–Š‡ƒ••‡••‡‡ǡ‹–…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡ˆ‘ŽŽ‘™‹‰ƒ••‡••‡–›‡ƒ”ǤŠ‡•Š‘”–Ǧ–‡”ƒ†Ž‘‰Ǧ–‡”Ž‘••‡•
•ŠƒŽŽ„‡•‡’ƒ”ƒ–‡Ž›…ƒ””‹‡†ˆ‘”™ƒ”†Ǥ…ƒ•‡‘ˆ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽŽ‘••‹–…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡ǡ‹ˆƒ›ǡ—†‡”
–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ‰ƒ‹•dzȋ™Š‡–Š‡”•Š‘”–Ǧ–‡”‘”Ž‘‰Ǧ–‡”Ȍƒ••‡••ƒ„Ž‡ˆ‘”–Šƒ–ƒ••‡••‡–›‡ƒ”‹”‡•’‡…–‘ˆƒ›
‘–Š‡”…ƒ’‹–ƒŽƒ••‡–Ǥ—–‹…ƒ•‡‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽŽ‘••ǡ‹–…ƒ„‡•‡–‘ˆˆ‘Ž›ƒ‰ƒ‹•–Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹Ǥ
Š‹Ž‡ Ž‘••‡• ‘ –”ƒ•ˆ‡” ‘ˆ …ƒ’‹–ƒŽ ƒ••‡–•ǡ ™Š‡–Š‡” •Š‘”–Ǧ–‡” ‘” Ž‘‰Ǧ–‡” …ƒ‘– „‡ •‡– ‘ˆˆ ƒ‰ƒ‹•– ƒ› ‘–Š‡”
‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡—†‡”‘–Š‡”Š‡ƒ†•‘ˆ‹…‘‡ǡ‹Ǥ‡ǤǡŠ‡ƒ†•‘–Š‡”–ŠƒǮ…ƒ’‹–ƒŽ‰ƒ‹•ǯ‹–Š‡’”‡˜‹‘—•›‡ƒ”‹
™Š‹…Š•—…ŠŽ‘••™ƒ•‹…—””‡†ǡ‹–…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘„‡•‡–‘ˆˆƒ‰ƒ‹•–…ƒ’‹–ƒŽ‰ƒ‹•‹ˆƒ›†—”‹‰–Š‡‡š–‡‹‰Š–
ƒ••‡••‡–›‡ƒ”•Ǥ
 326 Lesson 5 Ȉ EP-TL

(E) Loss on Maintenance of Race Horses [Section 74A]

Š‡”‡ƒƒ••‡••‡‡™Š‘‹•–Š‡‘™‡”‘ˆ”ƒ…‡Š‘”•‡••—•–ƒ‹•ƒŽ‘••‹–Š‡ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡
Š‘”•‡•ǡŠ‡…ƒ…ƒ””›Ǧˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ•—…ŠŽ‘••ƒ‰ƒ‹•–Š‹•‹…‘‡ȋ”‹œ‡‘‡›”‡…‡‹˜‡†‘ƒ”ƒ…‡Š‘”•‡‘””ƒ…‡
Š‘”•‡•Ȍ ˆ”‘ –Š‡ ƒ…–‹˜‹–› ‘ˆ ‘™‹‰ ƒ† ƒ‹–ƒ‹‹‰ ”ƒ…‡ Š‘”•‡• ‹ •—„•‡“—‡– ›‡ƒ”•Ǥ Š‹• Ž‘•• …ƒ „‡ …ƒ””‹‡†
ˆ‘”™ƒ”†–‘ƒƒš‹—‘ˆˆ‘—”ƒ••‡••‡–›‡ƒ”•‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰–Š‡ƒ••‡••‡–›‡ƒ”ˆ‘”™Š‹…Š–Š‡Ž‘••
™ƒ•ϐ‹”•–…‘’—–‡†Ǥ
(F) Loss Under the Head “Income From Other Sources”
š…‡’– –Š‡ Ž‘•• ˆ”‘ –Š‡ ƒ…–‹˜‹–› ‘ˆ ‘™‹‰ ƒ† ƒ‹–ƒ‹‹‰ ‘ˆ ”ƒ…‡ Š‘”•‡•ǡ –Š‡ —ƒ„•‘”„‡† Ž‘•• ˆ”‘ ‘ ‘–Š‡”
ƒ…–‹˜‹–›—†‡”–Š‡ƒ„‘˜‡Š‡ƒ†‹•’‡”‹––‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡‘ˆ•—„•‡“—‡–›‡ƒ”•Ǥ
Carry forward and set-off of accumulated business loss and unabsorbed depreciation in certain
cases of amalgamation or demerger etc. [Section 72A]
‡…–‹‘͹ʹ’”‘˜‹†‡•ˆ‘”…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹
…ƒ•‡‘ˆǣ
ȋ‹Ȍ ƒƒŽ‰ƒƒ–‹‘ȏ‡…–‹‘͹ʹȋͳȌǡȋʹȌƒ†ȋ͵ȌȐǡ‘”
ȋ‹‹Ȍ †‡‡”‰‡”ȏ‡…–‹‘͹ʹȋͶȌƒ†ȋͷȐǡ‘”
ȋ‹‹‹Ȍ ”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••ȏ‡…–‹‘͹ʹȋ͸ȌȐǤ
(i) Carry forward and set off of accumulated loss and unabsorbed depreciation in case of amalgamation
[Section 72A(1), (2) and (3)]
ȋͳȌ Š‡”‡ –Š‡”‡ Šƒ• „‡‡ ƒ ƒƒŽ‰ƒƒ–‹‘ ‘ˆ ƒ
ƒȌ …‘’ƒ›‘™‹‰ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‘”ƒ•Š‹’‘”ƒŠ‘–‡Ž™‹–Šƒ‘–Š‡”…‘’ƒ›‘”
„Ȍ ƒ ƒƒŽ‰ƒƒ–‹‘ ‘ˆ ƒ „ƒ‹‰ …‘’ƒ› ”‡ˆ‡””‡† –‘ ‹ …Žƒ—•‡ ȋ…Ȍ ‘ˆ ‡…–‹‘ ͷ ‘ˆ –Š‡ ƒ‹‰
‡‰—Žƒ–‹‘…–ǡͳͻͶͻ™‹–Šƒ•’‡…‹ϐ‹‡†„ƒ‘”
…Ȍ ‘‡‘”‘”‡’—„Ž‹…•‡…–‘”…‘’ƒ›‘”…‘’ƒ‹‡•™‹–Š‘‡‘”‘”‡’—„Ž‹…•‡…–‘”…‘’ƒ›‘”
…‘’ƒ‹‡•ǡ
†Ȍ ’—„Ž‹…•‡…–‘”…‘’ƒ›™‹–Š‘‡‘”‘”‡…‘’ƒ›‘”…‘’ƒ‹‡•ǡ‹ˆ–Š‡•Šƒ”‡’—”…Šƒ•‡ƒ‰”‡‡‡–
‡–‡”‡†‹–‘—†‡”•–”ƒ–‡‰‹…†‹•‹˜‡•–‡–”‡•–”‹…–‡†‹‡†‹ƒ–‡ƒƒŽ‰ƒƒ–‹‘‘ˆ–Š‡•ƒ‹†’—„Ž‹…
•‡…–‘” …‘’ƒ›Ǣ ƒ† –Š‡ ƒƒŽ‰ƒƒ–‹‘ ‹• …ƒ””‹‡† ‘—– ™‹–Š‹ ϐ‹˜‡ ›‡ƒ”• ˆ”‘ –Š‡ ‡† ‘ˆ –Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡”‡•–”‹…–‹‘‘ƒƒŽ‰ƒƒ–‹‘‹–Š‡•Šƒ”‡’—”…Šƒ•‡ƒ‰”‡‡‡–‡†•
’”‘˜‹†‡†–Š‡ƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆƒƒŽ‰ƒƒ–‡†…‘’ƒ›•ŠƒŽŽ‘–
„‡‘”‡–Šƒ–Š‡ƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ–Š‡’—„Ž‹…•‡…–‘”…‘’ƒ›ǡƒ•
‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡’—„Ž‹…•‡…–‘”…‘’ƒ›…‡ƒ•‡•–‘„‡‘‡ƒ•ƒ”‡•—Ž–‘ˆ•–”ƒ–‡‰‹…†‹˜‡•–‡–Ǥ
 –Š‡ǡ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•…–ǡ–Š‡ƒ……——Žƒ–‡†Ž‘••
ƒ†–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡Ž‘••‘”ǡ
ƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”
‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‘™ƒ•‡ˆˆ‡…–‡†ǡƒ†‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–”‡Žƒ–‹‰–‘•‡–‘ˆˆƒ†
…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••ƒ†ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ

ȋʹȌ ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ —„Ǧ•‡…–‹‘ ȋͳȌǡ –Š‡ ƒ……——Žƒ–‡† Ž‘•• •ŠƒŽŽ ‘– „‡ •‡– ‘ˆˆ ‘”
…ƒ””‹‡† ˆ‘”™ƒ”† ƒ† –Š‡ —ƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘ •ŠƒŽŽ ‘– „‡ ƒŽŽ‘™‡† ‹ –Š‡ ƒ••‡••‡– ‘ˆ –Š‡
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›—Ž‡••Ǧ
ȋƒȌ –Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›Ǧ
ȋ‹Ȍ Šƒ•„‡‡‡‰ƒ‰‡†‹–Š‡„—•‹‡••ǡ‹™Š‹…Š–Š‡ƒ……——Žƒ–‡†Ž‘••‘……—””‡†‘”†‡’”‡…‹ƒ–‹‘
”‡ƒ‹•—ƒ„•‘”„‡†ǡˆ‘”–Š”‡‡‘”‘”‡›‡ƒ”•Ǣ
ȋ‹‹Ȍ Šƒ• Š‡Ž† …‘–‹—‘—•Ž› ƒ• ‘ –Š‡ †ƒ–‡ ‘ˆ –Š‡ ƒƒŽ‰ƒƒ–‹‘ ƒ– Ž‡ƒ•– –Š”‡‡Ǧˆ‘—”–Š• ‘ˆ –Š‡
„‘‘˜ƒŽ—‡‘ˆϐ‹š‡†ƒ••‡–•Š‡Ž†„›‹––™‘›‡ƒ”•’”‹‘”–‘–Š‡†ƒ–‡‘ˆƒƒŽ‰ƒƒ–‹‘Ǥ
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 327

ȋ„Ȍ –Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›Ǧ
ȋ‹Ȍ Š‘Ž†•…‘–‹—‘—•Ž›ˆ‘”ƒ‹‹—’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆƒƒŽ‰ƒƒ–‹‘ƒ–
Ž‡ƒ•––Š”‡‡Ǧˆ‘—”–Š•‘ˆ–Š‡„‘‘˜ƒŽ—‡‘ˆϐ‹š‡†ƒ••‡–•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ƒ…“—‹”‡†
‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘Ǣ
ȋ‹‹Ȍ …‘–‹—‡•–Š‡„—•‹‡••‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ˆ‘”ƒ‹‹—’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•
ˆ”‘–Š‡†ƒ–‡‘ˆƒƒŽ‰ƒƒ–‹‘Ǣ
ȋ‹‹‹Ȍ ˆ—Žϐ‹Ž••—…Š‘–Š‡”…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†–‘‡•—”‡–Š‡”‡˜‹˜ƒŽ‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡
ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‘”–‘‡•—”‡–Šƒ––Š‡ƒƒŽ‰ƒƒ–‹‘‹•ˆ‘”‰‡—‹‡„—•‹‡••’—”’‘•‡Ǥ

‘•‡“—‡…‡•‹ˆ–Š‡ƒ„‘˜‡…‘†‹–‹‘•ƒ”‡‘–•ƒ–‹•ϐ‹‡†ȏ‡…–‹‘͹ʹȋ͵ȌȐǣƒ…ƒ•‡™Š‡”‡–Š‡…‘†‹–‹‘•
Žƒ‹††‘™—†‡”Žƒ—•‡ȋ„Ȍƒ„‘˜‡ƒ”‡‘–…‘’Ž‹‡†™‹–Šǡ–Š‡•‡–‘ˆˆ‘ˆŽ‘••‘”ƒŽŽ‘™ƒ…‡‘ˆ†‡’”‡…‹ƒ–‹‘ƒ†‡
‹ƒ›’”‡˜‹‘—•›‡ƒ”‹–Š‡Šƒ†•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›•ŠƒŽŽ„‡†‡‡‡†–‘„‡‹–Š‡‹…‘‡‘ˆ–Š‡
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›…Šƒ”‰‡ƒ„Ž‡–‘–ƒšˆ‘”–Š‡›‡ƒ”‹™Š‹…Š•—…Š…‘†‹–‹‘•ƒ”‡‘–…‘’Ž‹‡†™‹–ŠǤ
ȏNoteǣŠ‡…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒ•’‡”–Š‡ƒ„‘˜‡’”‘˜‹•‹‘••ŠƒŽŽ„‡
ƒŽŽ‘™‡†‘Ž›™Š‡ƒƒŽ‰ƒƒ–‹‘‹•ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ʹȋͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳȐǤ
(ii) Carry forward and set off of accumulated losses and unabsorbed depreciation in case of demerger
[Sections 72A(4) and (5]
‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ ƒ› ‘–Š‡” ’”‘˜‹•‹‘• ‘ˆ –Š‹• …– ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ †‡‡”‰‡”ǡ –Š‡
ƒ……——Žƒ–‡†Ž‘••ƒ†–Š‡ƒŽŽ‘™ƒ…‡ˆ‘”ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ–Š‡†‡‡”‰‡†…‘’ƒ›•ŠƒŽŽǦ
ȋƒȌ ™Š‡”‡•—…ŠŽ‘••‘”—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‹•†‹”‡…–Ž›”‡Žƒ–ƒ„Ž‡–‘–Š‡—†‡”–ƒ‹‰•–”ƒ•ˆ‡””‡†–‘–Š‡
”‡•—Ž–‹‰…‘’ƒ›ǡ„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‹–Š‡Šƒ†•‘ˆ–Š‡”‡•—Ž–‹‰…‘’ƒ›Ǣ
ȋ„Ȍ ™Š‡”‡•—…ŠŽ‘••‘”—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‹•‘–†‹”‡…–Ž›”‡Žƒ–ƒ„Ž‡–‘–Š‡—†‡”–ƒ‹‰•–”ƒ•ˆ‡””‡†–‘
–Š‡”‡•—Ž–‹‰…‘’ƒ›ǡ„‡ƒ’’‘”–‹‘‡†„‡–™‡‡–Š‡†‡‡”‰‡†…‘’ƒ›ƒ†–Š‡”‡•—Ž–‹‰…‘’ƒ›‹
–Š‡ •ƒ‡ ’”‘’‘”–‹‘ ‹ ™Š‹…Š –Š‡ ƒ••‡–• ‘ˆ –Š‡ —†‡”–ƒ‹‰• Šƒ˜‡ „‡‡ ”‡–ƒ‹‡† „› –Š‡ †‡‡”‰‡†
…‘’ƒ›ƒ†–”ƒ•ˆ‡””‡†–‘–Š‡”‡•—Ž–‹‰…‘’ƒ›ǡƒ†„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‹
–Š‡Šƒ†•‘ˆ–Š‡†‡‡”‰‡†…‘’ƒ›‘”–Š‡”‡•—Ž–‹‰…‘’ƒ›ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…–ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ•’‡…‹ˆ›•—…Š
…‘†‹–‹‘•ƒ•‹–…‘•‹†‡”•‡…‡••ƒ”›–‘‡•—”‡–Šƒ––Š‡†‡‡”‰‡”‹•ˆ‘”‰‡—‹‡„—•‹‡••’—”’‘•‡•Ǥ
ȏNoteǣŠ‡…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒ•’‡”–Š‡ƒ„‘˜‡’”‘˜‹•‹‘•
•ŠƒŽŽ„‡ƒŽŽ‘™‡†‘Ž›™Š‡†‡‡”‰‡”‹•ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ʹȋͳͻȌ‘ˆ–Š‡…‘‡Ǧ–ƒš …–ǤȐ

CASE LAW

‘”†‡”–‘ƒ˜ƒ‹Ž„‡‡ϔ‹–‘ˆ…Žƒ—•‡ȋƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋͺȌ‘ˆ•‡…–‹‘ͽ͸ǡƒ‹–‡ƒ…‡‘ˆ•‡’ƒ”ƒ–‡„‘‘•‘ˆ
account is not mandatory [Assessment year 2008-09]

Principal CIT v. Adani Retail Ltd. [2018] (Gujarat)

Fact of the Case:
 …ƒ•‡ ‘ˆ –Š‡ ƒ••‡••‡‡ǡ ƒ †‡‡”‰‡† …‘’ƒ›ǡ •…Š‡‡ ‘ˆ †‡‡”‰‡” ™ƒ• ƒ’’”‘˜‡† „› –Š‡ ‹‰Š ‘—”–ǡ ƒ†
–Š‡”‡—’‘ ƒŽŽ ƒ••‡••‡† ’”‘’‡”–‹‡• ƒ† Ž‹ƒ„‹Ž‹–‹‡• ‘ˆ †‡‡”‰‡† …‘’ƒ› ™‡”‡ –‘ „‡ –”ƒ•ˆ‡””‡† –‘ ”‡•—Ž–‹‰
…‘’ƒ›Ǥ––Š‡–‹‡‘ˆ†‡‡”‰‡”ǡ“—‡•–‹‘‘ˆ…ƒ””›Ǧˆ‘”™ƒ”†Ž‘••‡•‘”—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ†‡‡”‰‡†
…‘’ƒ›–‘„‡ƒ˜ƒ‹Žƒ„Ž‡–‘”‡•—Ž–ƒ–…‘’ƒ›…ƒ‡—’ˆ‘”…‘•‹†‡”ƒ–‹‘ǤŠ‡••‡••‹‰ˆϐ‹…‡””‡Œ‡…–‡†–Š‡
…Žƒ‹‘–Š‡‰”‘—†–Šƒ––Š‡ƒ••‡••‡‡Šƒ†‘–ƒ‹–ƒ‹‡†•‡’ƒ”ƒ–‡ƒ……‘—–•ǡƒ˜‹‡™™Š‹…Š–Š‡‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍ—’Š‡Ž†ǤŠ‡–”‹„—ƒŽ‘’‹‡†–Šƒ–‘•—…Š”‡“—‹”‡‡–ƒ”‘•‡‘—–‘ˆ•‡…–‹‘͹ʹȋͶȌǤ……‘”†‹‰–‘–Š‡
”‹„—ƒŽǡ‡…–‹‘͹ʹȋͶȌ”‡“—‹”‡†–Šƒ–‡š’Žƒƒ–‹‘‘ˆ–Š‡ƒ••‡••‡‡ǡ‘Š‘™„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••ƒ†—ƒ„•‘”„‡†
†‡’”‡…‹ƒ–‹‘†‹”‡…–Ž›”‡Žƒ–ƒ„Ž‡–‘—‹–•–”ƒ•ˆ‡””‡†–‘”‡•—Ž–‹‰…‘’ƒ›™‡”‡–‘„‡‡šƒ‹‡†‘‡”‹–•ƒ†ǡ‹ˆ
‘†‡ˆ‡…–•™‡”‡ˆ‘—†‹•ƒ‡ǡ‹–™ƒ•–‘„‡ƒ……‡’–‡†Ǥ
 328 Lesson 5 Ȉ EP-TL

Judgement:
‡Ž†–Šƒ–‘ˆƒ…–•ǡ–Š‡”‹„—ƒŽ”‹‰Š–Ž›…‘…Ž—†‡†–Šƒ–•–ƒ–—–‘”›’”‘˜‹•‹‘•†‘‘–…‘ƒ†–Šƒ–‹‘”†‡”–‘
ƒ˜ƒ‹Ž „‡‡ϐ‹– ‘ˆ …Žƒ—•‡ ȋƒȌ ‘ˆ •‡…–‹‘ ͹ʹȋͶȌ •‡’ƒ”ƒ–‡ „‘‘• ‘ˆ ƒ……‘—– —•– „‡ ƒ‹–ƒ‹‡†Ǥ Š‡”‡ˆ‘”‡ǡ –Š‡
‹’—‰‡†‘”†‡”’ƒ••‡†„›–Š‡”‹„—ƒŽ”‡“—‹”‹‰–Š‡••‡••‹‰ˆϐ‹…‡”–‘‡šƒ‹‡‡š’Žƒƒ–‹‘‘ˆ–Š‡ƒ••‡••‡‡
‘‡”‹–•ǡ†‹†‘–”‡“—‹”‡ƒ›‹–‡”ˆ‡”‡…‡Ǥ

(iii) Carry forward and set off of accumulated losses and unabsorbed depreciation in case of reorganisation
of business [Section 72A(6)]
Š‡”‡–Š‡”‡Šƒ•„‡‡”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••ǡ™Š‡”‡„›ǡƒϐ‹”‹••—……‡‡†‡†„›ƒ…‘’ƒ›ˆ—Žϐ‹ŽŽ‹‰–Š‡
…‘†‹–‹‘• Žƒ‹† †‘™ ‹ Žƒ—•‡ ȋš‹‹‹Ȍ ‘ˆ ‡…–‹‘ Ͷ͹ ‘” ƒ ’”‘’”‹‡–ƒ”› …‘…‡” ‹• •—……‡‡†‡† „› ƒ …‘’ƒ›
ˆ—Žϐ‹ŽŽ‹‰–Š‡…‘†‹–‹‘•Žƒ‹††‘™‹Žƒ—•‡ȋš‹˜Ȍ‘ˆ‡…–‹‘Ͷ͹ǡ–Š‡ǡ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹
ƒ›‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ–Š‡ƒ……——Žƒ–‡†Ž‘••ƒ†–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ–Š‡’”‡†‡…‡••‘”
ϐ‹”‘”–Š‡’”‘’”‹‡–ƒ”›…‘…‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡Ž‘••‘”ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘
‘ˆ–Š‡•—……‡••‘”…‘’ƒ›ˆ‘”–Š‡’—”’‘•‡‘ˆ’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š„—•‹‡••”‡‘”‰ƒ‹•ƒ–‹‘™ƒ•‡ˆˆ‡…–‡†ƒ†
‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–”‡Žƒ–‹‰–‘•‡–‘ˆˆƒ†…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••ƒ†ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ
ƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ
‡…–‹‘͹ʹȋ͸ȌǣŠ‡”‡–Š‡”‡Šƒ•„‡‡”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••™Š‡”‡„›ƒ’”‹˜ƒ–‡…‘’ƒ›‘”—Ž‹•–‡†
’—„Ž‹… …‘’ƒ› ‹• •—……‡‡†‡† „› ƒ Ž‹‹–‡† Ž‹ƒ„‹Ž‹–› ’ƒ”–‡”•Š‹’ ˆ—Žϐ‹ŽŽ‹‰ –Š‡ …‘†‹–‹‘• Žƒ‹† †‘™ ‹ –Š‡
’”‘˜‹•‘–‘…Žƒ—•‡ȋš‹‹‹„Ȍ‘ˆ•‡…–‹‘Ͷ͹ǡ–Š‡ǡ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•
…–ǡ–Š‡ƒ……——Žƒ–‡†Ž‘••ƒ†–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ–Š‡’”‡†‡…‡••‘”…‘’ƒ›ǡ•ŠƒŽŽ„‡†‡‡‡†–‘
„‡–Š‡Ž‘••‘”ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘‘ˆ–Š‡•—……‡••‘”Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š„—•‹‡••”‡‘”‰ƒ‹•ƒ–‹‘™ƒ•‡ˆˆ‡…–‡†ƒ†‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–”‡Žƒ–‹‰–‘•‡–
‘ˆˆƒ†…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••ƒ†ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ

‘•‡“—‡…‡•‹ˆ–Š‡…‘†‹–‹‘•Žƒ‹††‘™—†‡”‡…–‹‘ͺͽȋš‹‹‹Ȍǡȋš‹˜Ȍƒ†ͺͽȋš‹‹‹„Ȍƒ”‡‘–…‘’Ž‹‡†
™‹–Šȏ”‘˜‹•‘–‘‡…–‹‘ͽ͸ȋͼȌƬȋͼȌȐ

ˆƒ›‘ˆ–Š‡…‘†‹–‹‘•Žƒ‹††‘™—†‡”‡…–‹‘Ͷ͹ȋš‹‹‹Ȍƒ†ȋš‹˜Ȍƒ”‡‘–…‘’Ž‹‡†™‹–Šǡ–Š‡•‡–‘ˆˆ‘ˆŽ‘••‘”
ƒŽŽ‘™ƒ…‡‘ˆ†‡’”‡…‹ƒ–‹‘ƒ†‡‹ƒ›’”‡˜‹‘—•›‡ƒ”‹–Š‡Šƒ†•‘ˆ–Š‡•—……‡••‘”…‘’ƒ›ǡ•ŠƒŽŽ„‡†‡‡‡†
–‘„‡–Š‡‹…‘‡‘ˆ–Š‡…‘’ƒ›…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡›‡ƒ”‹™Š‹…Š•—…Š…‘†‹–‹‘•ƒ”‡‘–…‘’Ž‹‡†™‹–ŠǤ
ˆƒ›‘ˆ–Š‡…‘†‹–‹‘•Žƒ‹††‘™‹–Š‡’”‘˜‹•‘–‘…Žƒ—•‡ȋš‹‹‹„Ȍ‘ˆ•‡…–‹‘Ͷ͹ƒ”‡‘–…‘’Ž‹‡†™‹–Šǡ–Š‡•‡–
‘ˆˆ ‘ˆ Ž‘•• ‘” ƒŽŽ‘™ƒ…‡ ‘ˆ †‡’”‡…‹ƒ–‹‘ ƒ†‡ ‹ ƒ› ’”‡˜‹‘—• ›‡ƒ” ‹ –Š‡ Šƒ†• ‘ˆ –Š‡ •—……‡••‘” Ž‹‹–‡†
Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
‹–Š‡›‡ƒ”‹™Š‹…Š•—…Š…‘†‹–‹‘•ƒ”‡‘–…‘’Ž‹‡†™‹–ŠǤ
Note: “Accumulated loss” ‡ƒ••‘—…Š‘ˆ–Š‡Ž‘••‘ˆ–Š‡’”‡†‡…‡••‘”ϐ‹”‘”–Š‡’”‘’”‹‡–ƒ”›…‘…‡”‘”
–Š‡’”‹˜ƒ–‡…‘’ƒ›‘”—Ž‹•–‡†’—„Ž‹……‘’ƒ›„‡ˆ‘”‡…‘˜‡”•‹‘‹–‘Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’‘”–Š‡
ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‘”–Š‡†‡‡”‰‡†…‘’ƒ›ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ
„—•‹‡••‘”’”‘ˆ‡••‹‘dzȋ‘–„‡‹‰ƒŽ‘•••—•–ƒ‹‡†‹ƒ•’‡…—Žƒ–‹‘„—•‹‡••Ȍ™Š‹…Š•—…Š’”‡†‡…‡••‘”ϐ‹”‘”
–Š‡’”‘’”‹‡–ƒ”›…‘…‡”‘”–Š‡…‘’ƒ›‘”ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‘”†‡‡”‰‡†…‘’ƒ›ǡ™‘—Ž†Šƒ˜‡„‡‡
‡–‹–Ž‡†–‘…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͹ʹ‹ˆ–Š‡”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••‘”
…‘˜‡”•‹‘‘”ƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”Šƒ†‘––ƒ‡’Žƒ…‡Ǣ
“Unabsorbed depreciation” ‡ƒ••‘—…Š‘ˆ–Š‡ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘‘ˆ–Š‡’”‡†‡…‡••‘”ϐ‹”‘”–Š‡
’”‘’”‹‡–ƒ”› …‘…‡” ‘” –Š‡ ’”‹˜ƒ–‡ …‘’ƒ› ‘” —Ž‹•–‡† ’—„Ž‹… …‘’ƒ› „‡ˆ‘”‡ …‘˜‡”•‹‘ ‹–‘ Ž‹‹–‡†
Ž‹ƒ„‹Ž‹–› ’ƒ”–‡”•Š‹’ ‘” –Š‡ ƒƒŽ‰ƒƒ–‹‰ …‘’ƒ› ‘” –Š‡ †‡‡”‰‡† …‘’ƒ›ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ ™Š‹…Š
”‡ƒ‹•–‘„‡ƒŽŽ‘™‡†ƒ†™Š‹…Š™‘—Ž†Šƒ˜‡„‡‡ƒŽŽ‘™‡†–‘–Š‡’”‡†‡…‡••‘”ϐ‹”‘”–Š‡’”‘’”‹‡–ƒ”›…‘…‡”
‘”–Š‡…‘’ƒ›‘”ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‘”†‡‡”‰‡†…‘’ƒ›ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ—†‡”–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‹•…–ǡ‹ˆ–Š‡”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••‘”…‘˜‡”•‹‘‘”ƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”Šƒ†‘––ƒ‡’Žƒ…‡Ǥ
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 329

Carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme
of amalgamation of banking company in certain cases [section 72AA]
‡…–‹‘͹ʹ‹•‡”–‡†„›–Š‡ ‹ƒ…‡…–ǡʹͲͲͷ’”‘˜‹†‡•ˆ‘”…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••ƒ†
—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘‘ˆ„ƒ‹‰…‘’ƒ‹‡•Ǥ
Š‡”‡–Š‡”‡Šƒ•„‡‡ƒƒƒŽ‰ƒƒ–‹‘‘ˆƒ„ƒ‹‰…‘’ƒ›™‹–Šƒ›‘–Š‡”„ƒ‹‰‹•–‹–—–‹‘—†‡”ƒ•…Š‡‡
•ƒ…–‹‘‡†ƒ†„”‘—‰Š–‹–‘ˆ‘”…‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ‡…–‹‘Ͷͷ‘ˆ–Š‡ƒ‹‰
‡‰—Žƒ–‹‘…–ǡͳͻͶͻǡ–Š‡ƒ……——Žƒ–‡†Ž‘••ƒ†–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ•—…Š„ƒ‹‰…‘’ƒ›•ŠƒŽŽ„‡
†‡‡‡†–‘„‡–Š‡Ž‘••‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘‘ˆ•—…Š„ƒ‹‰‹•–‹–—–‹‘ˆ‘”–Š‡’”‡˜‹‘—•
›‡ƒ”‹™Š‹…Š–Š‡•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘™ƒ•„”‘—‰Š–‹–‘ˆ‘”…‡ƒ†‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–”‡Žƒ–‹‰–‘•‡–Ǧ‘ˆˆ
ƒ†…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••ƒ†ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ
Š‡ –‡”•ǡ Dzƒ……——Žƒ–‡† Ž‘••dzǡ Dz„ƒ‹‰ …‘’ƒ›dzǡ Dz„ƒ‹‰ ‹•–‹–—–‹‘dz ƒ† Dz—ƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘dz ˆ‘” –Š‡
’—”’‘•‡•‘ˆ–Š‹•‡…–‹‘ƒ”‡†‡ϐ‹‡†ƒ•—†‡”ǣ
ȋ‹Ȍ “accumulated loss” ‡ƒ• •‘ —…Š ‘ˆ –Š‡ Ž‘•• ‘ˆ –Š‡ ƒƒŽ‰ƒƒ–‹‰ „ƒ‹‰ …‘’ƒ› —†‡” –Š‡ Š‡ƒ†
Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzȋ‘–„‡‹‰ƒŽ‘•••—•–ƒ‹‡†‹ƒ•’‡…—Žƒ–‹‘„—•‹‡••Ȍ™Š‹…Š•—…Š
ƒƒŽ‰ƒƒ–‹‰„ƒ‹‰…‘’ƒ›ǡ™‘—Ž†Šƒ˜‡„‡‡‡–‹–Ž‡†–‘…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ—†‡”–Š‡’”‘˜‹•‹‘•
‘ˆ‡…–‹‘͹ʹǡ‹ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘Šƒ†‘––ƒ‡’Žƒ…‡Ǣ
ȋ‹‹Ȍ “banking company” •ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹Žƒ—•‡ȋ…Ȍ‘ˆ‡…–‹‘ͷ‘ˆ–Š‡ƒ‹‰
‡‰—Žƒ–‹‘…–ǡͳͻͶͻȋͳͲ‘ˆͳͻͶͻȌǢ
ȋ‹‹‹Ȍ “banking institution” •ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹—„Ǧ•‡…–‹‘ȋͳͷȌ‘ˆ‡…–‹‘Ͷͷ‘ˆ–Š‡
ƒ‹‰‡‰—Žƒ–‹‘…–ǡͳͻͶͻȋͳͲ‘ˆͳͻͶͻȌǢ
ȋ‹˜Ȍ “unabsorbed depreciation” ‡ƒ••‘—…Š‘ˆ–Š‡ƒŽŽ‘™ƒ…‡ˆ‘”†‡’”‡…‹ƒ–‹‘‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰„ƒ‹‰
…‘’ƒ› ™Š‹…Š ”‡ƒ‹• –‘ „‡ ƒŽŽ‘™‡† ƒ† ™Š‹…Š ™‘—Ž† Šƒ˜‡ „‡‡ ƒŽŽ‘™‡† –‘ •—…Š „ƒ‹‰ …‘’ƒ› ‹ˆ
ƒƒŽ‰ƒƒ–‹‘Šƒ†‘––ƒ‡’Žƒ…‡Ǥ
‘”†‡”–‘ƒ††”‡••–Š‡‹••—‡ˆƒ…‡†„›–Š‡ƒƒŽ‰ƒƒ–‡†’—„Ž‹…•‡…–‘”„ƒ•ƒ†’—„Ž‹…•‡…–‘”
‡‡”ƒŽ•—”ƒ…‡
‘’ƒ‹‡•ǡ An amendment has been made vide Finance Act, 2020 –‘ ‡š–‡† –Š‡ „‡‡ϐ‹– ‘ˆ –Š‹• •‡…–‹‘ –‘
ƒƒŽ‰ƒƒ–‹‘‘ˆǡǦ
ȋ‹Ȍ ‘‡ ‘” ‘”‡ …‘””‡•’‘†‹‰ ‡™ „ƒ ‘” „ƒ• ™‹–Š ƒ› ‘–Š‡” …‘””‡•’‘†‹‰ ‡™ „ƒ —†‡” ƒ •…Š‡‡
„”‘—‰Š–‹–‘ˆ‘”…‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”•‡…–‹‘ͻ‘ˆ–Š‡ƒ‹‰‘’ƒ‹‡•ȋ…“—‹•‹–‹‘ƒ†
”ƒ•ˆ‡”‘ˆ†‡”–ƒ‹‰•Ȍ…–ǡͳͻ͹Ͳ‘”—†‡”•‡…–‹‘ͻ‘ˆ–Š‡ƒ‹‰‘’ƒ‹‡•ȋ…“—‹•‹–‹‘ƒ†”ƒ•ˆ‡”
‘ˆ†‡”–ƒ‹‰•Ȍ…–ǡͳͻͺͲǡ‘”„‘–Šǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‘”
ȋ‹‹Ȍ ‡ ‘” ‘”‡
‘˜‡”‡– …‘’ƒ› ‘” …‘’ƒ‹‡• ™‹–Š ƒ› ‘–Š‡”
‘˜‡”‡– …‘’ƒ› —†‡” ƒ •…Š‡‡
•ƒ…–‹‘‡† ƒ† „”‘—‰Š– ‹–‘ ˆ‘”…‡ „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– —†‡” •‡…–‹‘ ͳ͸ ‘ˆ –Š‡
‡‡”ƒŽ •—”ƒ…‡
—•‹‡••ȋƒ–‹‘ƒŽ‹•ƒ–‹‘Ȍ…–ǡͳͻ͹ʹǤ
This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the
assessment year 2020-21 and subsequent assessment years.
TREATMENT OF CARRY-FORWARD OF LOSSES OF CERTAIN ASSESSEES
ȋͳȌ ƒ””›Ǧˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ‘ˆŽ‘••‡•‹…ƒ•‡‘ˆ…Šƒ‰‡‹…‘•–‹–—–‹‘‘ˆϐ‹”ȏ‡…–‹‘͹ͺȐ
 Š‡”‡ƒ…Šƒ‰‡Šƒ•‘……—””‡†‹–Š‡…‘•–‹–—–‹‘‘ˆƒϐ‹”ǡ–Š‡ϐ‹”‹•‘–‡–‹–Ž‡†–‘…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ
•‘ —…Š ‘ˆ –Š‡ Ž‘•• ’”‘’‘”–‹‘ƒ–‡ –‘ –Š‡ •Šƒ”‡ ‘ˆ ƒ ”‡–‹”‡† ‘” †‡…‡ƒ•‡† ’ƒ”–‡” ƒ• ‡š…‡‡†• Š‹• •Šƒ”‡ ‘ˆ
’”‘ϐ‹–•ǡ‹ˆƒ›ǡ‹–Š‡ϐ‹”‹”‡•’‡…–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
(2) Carry-forward and set-off of losses in case of succession of business or profession
 Š‡ƒ„—•‹‡••‘”’”‘ˆ‡••‹‘‹••—……‡‡†‡†„›ƒ‘–Š‡”’‡”•‘ǡ–Š‡„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‡•„›–Š‡’”‡†‡…‡••‘”
…ƒ „‡ •‡–Ǧ‘ˆˆ ƒ‰ƒ‹•– –Š‡ ‹…‘‡ ‡ƒ”‡† „› –Š‡ ’”‡†‡…‡••‘” „‡ˆ‘”‡ –Š‡ •—……‡••‹‘Ǥ Š‡ •—……‡••‘” ‹• ‘–
‡–‹–Ž‡†–‘…ƒ””›ˆ‘”™ƒ”†–Š‡Ž‘••‡••—•–ƒ‹‡†„›–Š‡’”‡†‡…‡••‘”ƒ†•‡––Š‡‘ˆˆƒ‰ƒ‹•––Š‡‹…‘‡‡ƒ”‡†
„›Š‹Ǥ‘™‡˜‡”ǡ–Š‡”‡‹•‡š…‡’–‹‘Ǥˆ–Š‡•—……‡••‹‘‹•„›‹Š‡”‹–ƒ…‡ǡ–Š‡Š‡‹”Ǧƒ–ǦŽƒ™‹•‡–‹–Ž‡†–‘…ƒ””›Ǧ
ˆ‘”™ƒ”† ƒ†•‡–Ǧ‘ˆˆ–Š‡Ž‘••‡••—•–ƒ‹‡†„›–Š‡’”‡†‡…‡••‘”’”‘˜‹†‡†–Š‡„—•‹‡••‹“—‡•–‹‘…‘–‹—‡•–‘
„‡…ƒ””‹‡†‘„›–Š‡•—……‡••‘”Ǥ
 330 Lesson 5 Ȉ EP-TL

(3) Carry-forward and set-off of losses of companies in which the public are not substantially interested
[Section 79]
 Š‡Ž‘••‡•‘ˆ…‘’ƒ‹‡•‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡‘–•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–Ǧ
‘ˆˆ‘Ž›‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘‹••ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ Š‡•Šƒ”‡•‘ˆ–Š‡…‘’ƒ›…ƒ””›‹‰‘–Ž‡••–Šƒͷͳ’‡”…‡–‘ˆ–Š‡˜‘–‹‰’‘™‡”™‡”‡„‡‡ϐ‹…‹ƒŽŽ›Š‡Ž†
„›–Š‡•ƒ‡’‡”•‘•‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡›‡ƒ”‘”›‡ƒ”•‹™Š‹…Š–Š‡Ž‘••™ƒ•‹…—””‡†ƒ†ƒŽ•‘‘–Š‡
Žƒ•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‹•–‘„‡ƒ†Œ—•–‡†ǤŠ‡”‡ƒ…Šƒ‰‡‹
˜‘–‹‰’‘™‡”‘ˆ‘”‡–Šƒͷͳ’‡”…‡–‘ˆ•Šƒ”‡Š‘Ž†‹‰Šƒ•‘……—””‡†„‡–™‡‡–Š‡–™‘†ƒ–‡•‡–‹‘‡†
ƒ„‘˜‡ȋ‹Ǥ‡ǤǡŽƒ•–†ƒ›‘ˆ–Š‡›‡ƒ”‘ˆ‘……—””‡…‡‘ˆŽ‘••ƒ†–Š‡Žƒ•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡
„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‹•–‘„‡ƒ†Œ—•–‡†Ȍǡ–Š‡ƒ••‡••‡‡™‹ŽŽ‘–„‡‡–‹–Ž‡†–‘–Š‡„‡‡ϐ‹–‘ˆ•‡–Ǧ‘ˆˆǤ

‘™‡˜‡”ǡ–Š‡„‡‡ϐ‹–‘ˆ•‡–Ǧ‘ˆˆ™‹ŽŽ‘–„‡†‡‹‡†‹ˆ–Š‡…Šƒ‰‡‹˜‘–‹‰’‘™‡”‹•†—‡–‘–Š‡†‡ƒ–Š‘ˆƒ•Šƒ”‡Š‘Ž†‡”
‘”‘ƒ……‘—–‘ˆ–”ƒ•ˆ‡”‘ˆ•Šƒ”‡•„›™ƒ›‘ˆ‰‹ˆ––‘ƒ›”‡Žƒ–‹˜‡‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”ƒ‹‰•—…Š‰‹ˆ–Ǥ
Š‡‡ˆˆ‡…–‘ˆ–Š‹•’”‘˜‹•‹‘‹•–Šƒ–‹ˆ–Š‡ƒŒ‘”‹–›‘ˆ–Š‡˜‘–‹‰’‘™‡”‹•‘–‹–Š‡•ƒ‡Šƒ†•„‘–Š‘–Š‡Žƒ•–
†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡Ž‘••™ƒ••—•–ƒ‹‡†„›–Š‡…Ž‘•‡Ž›ǦŠ‡Ž†…‘’ƒ›ƒ†‘–Š‡Žƒ•–†ƒ›‘ˆ
–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡•‡–‘ˆˆ‹•…Žƒ‹‡†ǡ•‡–‘ˆˆ™‹ŽŽ‘–„‡ƒŽŽ‘™‡†—†‡”‡…–‹‘͹ʹǤŠ‹•‹•‘„˜‹‘—•Ž›
–‘ˆ”—•–”ƒ–‡ƒ––‡’–•ƒ––”ƒˆϐ‹…‹‰‹Ž‘••‡•Ǥ
–Šƒ•„‡‡ˆ—”–Š‡”’”‘˜‹†‡†„› ‹ƒ…‡…–ǡͳͻͻͻ™Ǥ‡ǤˆǤͳǤͶǤʹͲͲͲ–Šƒ–„‡‡ϐ‹–‘ˆ•‡–‘ˆˆ™‹ŽŽƒŽ•‘‘–„‡†‡‹‡†
‹–Š‡…ƒ•‡™Š‡”‡ƒ›…Šƒ‰‡‹–Š‡•Šƒ”‡Š‘Ž†‹‰‘ˆƒ†‹ƒ…‘’ƒ›™Š‹…Š‹•ƒ•—„•‹†‹ƒ”›‘ˆƒˆ‘”‡‹‰
…‘’ƒ›ƒ•ƒ”‡•—Ž–‘ˆƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”‘ˆƒˆ‘”‡‹‰…‘’ƒ›•—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ–ϐ‹ˆ–›‘‡
’‡”…‡–•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰‘”†‡‡”‰‡†ˆ‘”‡‹‰…‘’ƒ›…‘–‹—‡Ǥ
–Šƒ•ˆ—”–Š‡”„‡‡’”‘˜‹†‡†„› ‹ƒ…‡…–ǡʹͲͳͺ–Šƒ–„‡‡ϐ‹–‘ˆ…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••‡••ŠƒŽŽ‘–
„‡†‡‹‡†–‘ƒ…Ž‘•‡Ž›Š‡Ž†…‘’ƒ›•‡‡‹‰‹•‘Ž˜‡…›”‡•‘Ž—–‹‘ǡ™Š‡”‡ƒ…Šƒ‰‡‹–Š‡•Šƒ”‡Š‘Ž†‹‰–ƒ‡•
’Žƒ…‡‹ƒ’”‡˜‹‘—•›‡ƒ”’—”•—ƒ––‘ƒ”‡•‘Ž—–‹‘’Žƒƒ’’”‘˜‡†—†‡”–Š‡•‘Ž˜‡…›ƒ†ƒ”—’–…›‘†‡ǡ
ʹͲͳ͸ǡƒˆ–‡”ƒˆˆ‘”†‹‰ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†–‘–Š‡Œ—”‹•†‹…–‹‘ƒŽ”‹…‹’ƒŽ‘‹••‹‘‡”‘”
‘‹••‹‘‡”Ǥ
It has further been provided by Finance Act, 2021 –Šƒ–„‡‡ϐ‹–‘ˆ…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••‡••ŠƒŽŽ
‘–„‡†‡‹‡†™Š‡”‡‹–Š‡…Šƒ‰‡‹•Šƒ”‡Š‘Ž†‹‰’ƒ––‡”Šƒ•–ƒ‡’Žƒ…‡‘ƒ……‘—–‘ˆ”‡Ž‘…ƒ–‹‘„‡–™‡‡
‘”‹‰‹ƒŽˆ—†ƒ†”‡•—Ž–ƒ–ˆ—†ǡƒ•’”‘’‘•‡†–‘„‡†‡ϐ‹‡†˜‹†‡ƒ‡†‡–•‹‡…–‹‘Ͷ͹Ǥ
(4) Carry forward and set of losses in case of eligible start-up [Section 79(b)]
 Š‹••‡…–‹‘‹•ƒ’’Ž‹…ƒ„Ž‡‹ˆˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ƒȌ Š‡ƒ••‡••‡‡‹•ƒ…‘’ƒ›‹™Š‹…Š’—„Ž‹…ƒ”‡‘–•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†Ǥ
„Ȍ –‹•ƒ‡Ž‹‰‹„Ž‡•–ƒ”–—’”‡ˆ‡””‡†—Ȁ•ͺͲǦǤ
…Ȍ ‘••‹•‹…—””‡†„›–Š‡ƒ••‡••‡‡…‘’ƒ›†—”‹‰–Š‡’‡”‹‘†‘ˆ͹›‡ƒ”•ȋ•–ƒ”–‹‰ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š
–Š‡…‘’ƒ›‹•‹…‘”’‘”ƒ–‡†ȌǤ

ˆ–Š‡ƒ„‘˜‡…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†–Š‡„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•–…—””‡–›‡ƒ”ǯ•‹…‘‡
‘Ž›‹ˆƒŽŽ–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡…‘’ƒ›ȋ™Š‘Š‡Ž†•Šƒ”‡•…ƒ””›‹‰˜‘–‹‰’‘™‡”Ȍ‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡Ž‘••™ƒ•‹…—””‡†ǡ…‘–‹—‡–‘Š‘Ž†•Šƒ”‡•‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡…—””‡–›‡ƒ”Ǥ
Exceptions ǣŠ‡ƒ„‘˜‡‡–‹‘‡†”‡•–”‹…–‹‘•ŠƒŽŽ‘–„‡ƒ’’Ž‹…ƒ„Ž‡‹ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ƒȌ Š‡”‡–Š‡…Šƒ‰‡‹–Š‡•Šƒ”‡Š‘Ž†‹‰–ƒ‡•’Žƒ…‡†—‡–‘†‡ƒ–Š‘ˆƒ•Šƒ”‡Š‘Ž†‡”‘”ƒ›•Šƒ”‡Š‘Ž†‡”‰‹ˆ–‹‰Š‹•
•Šƒ”‡•–‘Š‹•ȀŠ‡””‡Žƒ–‹˜‡Ǥ
„Ȍ ƒ””› ˆ‘”™ƒ”† ‘ˆ —ƒ„•‘”„‡† ‡’”‡…‹ƒ–‹‘ǡ —ƒ„•‘”„‡† …ƒ’‹–ƒŽ ‡š’‡†‹–—”‡ ‘ …‹‡–‹ϐ‹… ‡•‡ƒ”…Šǡ
—ƒ„•‘”„‡†…ƒ’‹–ƒŽ‡š’‡†‹–—”‡„›ƒ…‘’ƒ›‘’”‘‘–‹‘‘ˆˆƒ‹Ž›’Žƒ‹‰ƒ‘‰‹–•‡’Ž‘›‡‡•Ǥ
…Ȍ ˆ–Š‡ƒ••‡••‡‡‹•ƒ•—„•‹†‹ƒ”›‘ˆˆ‘”‡‹‰…‘’ƒ›ƒ†–Š‡ˆ‘”‡‹‰Š‘Ž†‹‰…‘’ƒ›‹•ƒƒŽ‰ƒƒ–‡†Ȁ‡”‰‡†
™‹–Šƒ‘–Š‡”ˆ‘”‡‹‰…‘’ƒ›ȋƒ†–Š‡’‡”•‘•Š‘Ž†‹‰ͷͳΨ‘”‘”‡•Šƒ”‡•‹–Š‡ƒƒŽ‰ƒƒ–‹‰Ȁ†‡‡”‰‡†
…‘’ƒ›„‡…‘‡–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†Ȁ”‡•—Ž–‹‰ˆ‘”‡‹‰…‘’ƒ›ȌǤ
 Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 331

SUBMISSION OF RETURN FOR LOSS [SECTION 80]

ƒ••‡••‡‡‹•‘–‡–‹–Ž‡†–‘…ƒ””›Ǧˆ‘”™ƒ”†ƒŽ‘••—Ž‡••Š‡Šƒ•ϐ‹Ž‡†ƒ”‡–—”‘ˆŽ‘••–‘–Š‡‡’ƒ”–‡–‹–‹‡ƒ†
‹–Š‡’”‡•…”‹„‡†ˆ‘”Ǥ–‹•‘„Ž‹‰ƒ–‘”›‘–Š‡’ƒ”–‘ˆ–Š‡ƒ••‡••‡‡–‘ϐ‹Ž‡•—…Š”‡–—”ǡ‘–Š‡”™‹•‡Š‡™‹ŽŽ„‡†‡’”‹˜‡†
‘ˆ–Š‡„‡‡ϐ‹–‘ˆ…ƒ””›Ǧˆ‘”™ƒ”†‘ˆŽ‘••‡•Ǥˆƒ…–ǡ‘Ž›–Šƒ–ƒ‘—–‘ˆŽ‘••‹•ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†Ǧˆ‘”™ƒ”†™Š‹…ŠŠƒ•
„‡‡…‘’—–‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”ƒ†‘–„›–Š‡ƒ••‡••‡‡Ǥ
‘™‡˜‡” Ž‘••‡• —†‡” –Š‡ Š‡ƒ† Ǯ…‘‡ ˆ”‘ ‘—•‡ ”‘’‡”–›ǯ ƒ† Ǯƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘ǯ •ŠƒŽŽ „‡ …ƒ””‹‡†
ˆ‘”™ƒ”†‡˜‡‹ˆ–Š‡”‡–—”‘ˆ‹…‘‡‹•ˆ—”‹•Š‡†ƒˆ–‡”–Š‡†—‡†ƒ–‡ƒ••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǤ
‡…–‹‘ͺͲ‘ˆ–Š‡…–’”‘˜‹†‡•–Šƒ–ƒŽ‘••™Š‹…ŠŠƒ•‘–„‡‡†‡–‡”‹‡†‹’—”•—ƒ…‡‘ˆ”‡–—”ϐ‹Ž‡†—Ȁ•ͳ͵ͻȋ͵Ȍ
•ŠƒŽŽ‘–„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ—Ȁ•͹ʹȋͳȌǡ͹͵ȋʹȌǡ͹ͶȋͳȌǡ͹Ͷȋ͵Ȍǡ͹ͶǤ”‡˜‹‘—•Ž›ǡ‹–†‘‡•‘–‹…Ž—†‡‡…–‹‘
͹͵™Š‹…Š’”‘˜‹†‡•–Šƒ–ƒ›Ž‘••ǡ…‘’—–‡†‹”‡•’‡…–‘ˆƒ›•’‡…‹ϐ‹‡†„—•‹‡••”‡ˆ‡””‡†–‘‹•‡…–‹‘͵ͷǤ
‡…–‹‘ͺͲ‘ˆ–Š‡…–Šƒ•„‡‡ƒ‡†‡†„› ‹ƒ…‡…–ǡʹͲͳ͸–‘’”‘˜‹†‡–Šƒ––Š‡Ž‘••†‡–‡”‹‡†—Ȁ•͹͵•ŠƒŽŽ‘–
„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ—Ž‡••‹–‹•†‡–‡”‹‡†‹’—”•—ƒ…‡‘ˆƒ”‡–—”ϐ‹Ž‡†—Ȁ•ͳ͵ͻȋ͵ȌǤ
Š‡•‡ ƒ‡†‡–• ƒ”‡ ‡ˆˆ‡…–‹˜‡ ”‡–”‘•’‡…–‹˜‡Ž› ˆ”‘ ͳ•– ’”‹Žǡ ʹͲͳ͸ ƒ† ƒ……‘”†‹‰Ž› ƒ’’Ž› ‹ ”‡Žƒ–‹‘ –‘ –Š‡
ƒ••‡••‡–›‡ƒ”ʹͲͳ͸Ǧͳ͹ƒ†•—„•‡“—‡–›‡ƒ”•Ǥ
SUMMARY OF PROVISIONS REGARDING CARRY FORWARD AND SET-OFF OF LOSSES
Set-Off of Losses [Sections 70, 71]

Loss Set-Off
ͳǤ‘••ˆ”‘‘—•‡”‘’‡”–› ȋƒȌ …‘‡ˆ”‘ƒ›‘–Š‡”‘—•‡”‘’‡”–›
ȋ„Ȍ ›‘–Š‡”Š‡ƒ†‘ˆ‹…‘‡—’–‘ƒš‹—‘ˆ•Ǥ
ʹǡͲͲǡͲͲͲ
ʹǤ‘••ˆ”‘—•‹‡••‘””‘ˆ‡••‹‘ ȋƒȌ …‘‡ˆ”‘ƒ›‘–Š‡”—•‹‡••‘””‘ˆ‡••‹‘Ǥ
ȋ„Ȍ ›‘–Š‡”Š‡ƒ†‘ˆ‹…‘‡‡š…‡’–—†‡”–Š‡Š‡ƒ†
DzƒŽƒ”‹‡•dz
͵Ǥ‘••ˆ”‘’‡…—Žƒ–‹‘ …‘‡ˆ”‘’‡…—Žƒ–‹‘

ͶǤŠ‘”–Ǧ–‡”ƒ’‹–ƒŽ‘•• ȋƒȌ Š‘”–Ǧ–‡”ƒ’‹–ƒŽ

ƒ‹
ȋ„Ȍ ‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹
ͷǤ‘‰Ǧ–‡”ƒ’‹–ƒŽ‘•• ‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹
͸Ǥ‘••ˆ”‘ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡ …‘‡ˆ”‘ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡
Š‘”•‡• Š‘”•‡•Ǥ
Carry Forward and Set-Off of Losses [Section 72]

Loss Carry Forward and Set-Off

ͳǤ‘••ˆ”‘‘—•‡”‘’‡”–› ˆ‘ŽŽ‘™‹‰‡‹‰Š–›‡ƒ”•ǡ…‘‡ˆ”‘‘—•‡”‘’‡”–›
ʹǤ‘••ˆ”‘—•‹‡••‘””‘ˆ‡••‹‘  ˆ‘ŽŽ‘™‹‰ ‡‹‰Š– ›‡ƒ”•ǡ ‹…‘‡ ˆ”‘ —•‹‡•• ‘”
”‘ˆ‡••‹‘
͵Ǥ‘••ˆ”‘’‡…—Žƒ–‹‘  ˆ‘ŽŽ‘™‹‰ ˆ‘—” ›‡ƒ”•ǡ …‘‡ ˆ”‘’‡…—Žƒ–‹‘
ͶǤŠ‘”–Ǧ–‡”ƒ’‹–ƒŽ‘•• ˆ‘ŽŽ‘™‹‰‡‹‰Š–›‡ƒ”•ǣ
ȋƒȌŠ‘”–Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹
ȋ„Ȍ‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹
ͷǤ‘‰Ǧ–‡”ƒ’‹–ƒŽ‘•• ˆ‘ŽŽ‘™‹‰‡‹‰Š–›‡ƒ”•ǡ‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹
͸Ǥ ‘•• ˆ”‘ ƒ…–‹˜‹–› ‘ˆ ‘™‹‰ ƒ† ƒ‹–ƒ‹‹‰ ”ƒ…‡ ˆ‘ŽŽ‘™‹‰ˆ‘—”›‡ƒ”•ǡ…‘‡ˆ”‘ƒ…–‹˜‹–›‘ˆ‘™‹‰
Š‘”•‡• ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•
332 Lesson 5 Ȉ EP-TL

LESSON ROUND-UP

Ȉ ‡…–‹‘•͸Ͳ–‘͸ͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–’”‘˜‹†‡–Šƒ–‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ‹†‹˜‹†—ƒŽˆ‘”Š‡
’—”’‘•‡•‘ˆƒ••‡••‡–ǡ–Š‡”‡•ŠƒŽŽ„‡‹…Ž—†‡†ƒŽŽ–Š‡‹–‡•‘ˆ‹…‘‡•’‡…‹ϐ‹‡†‹–Š‡•‡•‡…–‹‘•Ǥ
Ȉ Transfer of Income (Section 60)ǣ Š‡”‡ ƒ ’‡”•‘ –”ƒ•ˆ‡”• –‘ ƒ› ‘–Š‡” ’‡”•‘ ‹…‘‡ ȋ™Š‡–Š‡”
”‡˜‘…ƒ„Ž‡‘”‘–Ȍˆ”‘ƒƒ••‡–™‹–Š‘—––”ƒ•ˆ‡””‹‰–Šƒ–ƒ••‡–ǡ–Š‡‹…‘‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ
‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”ǤDz”ƒ•ˆ‡”dz‹…Ž—†‡•ƒ›•‡––Ž‡‡–ǡ–”—•–ǡ…‘˜‡ƒ–ǡƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–Ǥ
Ȉ Revocable TransferǣŠ‡”‡ƒ’‡”•‘–”ƒ•ˆ‡”•ƒ›ƒ••‡––‘ƒ›‘–Š‡”’‡”•‘™‹–Šƒ”‹‰Š––‘”‡˜‘‡–Š‡
–”ƒ•ˆ‡”ǡƒŽŽ‹…‘‡ƒ……”—‹‰–‘–Š‡–”ƒ•ˆ‡”‡‡ˆ”‘–Š‡ƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡
–”ƒ•ˆ‡”‘”Ǥ
Ȉ Š‡‹…‘‡—†‡””‡˜‘…ƒ„Ž‡–”ƒ•ˆ‡”‘ˆƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–”ƒ•ˆ‡”‘”‡˜‡™Š‡‘Ž›
ƒ’ƒ”–‘ˆ‹…‘‡ˆ”‘–”ƒ•ˆ‡””‡†ƒ••‡–Šƒ•„‡‡ƒ’’Ž‹‡†ˆ‘”–Š‡–”ƒ•ˆ‡”‘”Ǥ
Ȉ Irrevocable Transferǣ…ƒ•‡‘ˆƒ‹””‡˜‘…ƒ„Ž‡–”ƒ•ˆ‡”‘ˆƒ••‡–•ˆ‘”ƒ•’‡…‹ϐ‹‡†’‡”‹‘†ǡ–Š‡‹…‘‡ˆ”‘
•—…Šƒ••‡–••ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–”ƒ•ˆ‡”‘”Ǥ
Ȉ Income to spouse from a concern in which such individual has substantial interest [Section 64(1)
(ii)]ǣ ŽŽ •—…Š ‹…‘‡ ƒ• ƒ”‹•‡• †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›ǡ –‘ –Š‡ •’‘—•‡ ‘ˆ ƒ ‹†‹˜‹†—ƒŽ „› ™ƒ› ‘ˆ •ƒŽƒ”›ǡ
…‘‹••‹‘ǡ ˆ‡‡• ‘” ƒ› ‘–Š‡” ”‡—‡”ƒ–‹‘ǡ ™Š‡–Š‡” ‹ …ƒ•Š ‘” ‹† ˆ”‘ ƒ …‘…‡” ‹ ™Š‹…Š •—…Š
‹†‹˜‹†—ƒŽŠƒ•ƒ•—„•–ƒ–‹ƒŽ‹–‡”‡•–ǡ•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽǤ
Ȉ Income to spouse from the assets transferred [Section 64(1)(iv)]ǣ Š‡”‡ ƒ› ‹†‹˜‹†—ƒŽ –”ƒ•ˆ‡”•
†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ƒ›ƒ••‡–ȋ‘–Š‡”–ŠƒƒŠ‘—•‡’”‘’‡”–›Ȍ–‘–Š‡•’‘—•‡ǡ–Š‡‹…‘‡ˆ”‘•—…Šƒ••‡–
•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Ȉ Income to Son’s Wife [Section 64(1)(vi)]ǣ Š‡”‡ ƒ› ‹†‹˜‹†—ƒŽ –”ƒ•ˆ‡”•ǡ †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›ǡ ƒ›
ƒ••‡––‘Š‹•ȀŠ‡”•‘ǯ•™‹ˆ‡™‹–Š‘—–ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ǡ–Š‡‹…‘‡ˆ”‘•—…Šƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†
‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Ȉ ”ƒ•ˆ‡”ˆ‘”‡†‹ƒ–‡‘”‡ˆ‡””‡†‡‡ϐ‹–‘ˆ‘ǯ•‹ˆ‡ȏ‡…–‹‘͸ͶȋͳȌȋ˜‹‹‹ȌȐǣ›‹…‘‡ƒ”‹•‹‰ǡ
†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ–‘ƒ›’‡”•‘‘”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ˆ”‘ƒ••‡–•–”ƒ•ˆ‡””‡††‹”‡…–Ž›‘”‹†‹”‡…–Ž›
ƒˆ–‡” —‡ͳǡͳͻ͹͵ǡ‘–Š‡”™‹•‡–Šƒˆ‘”ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘–‘–Š‡’‡”•‘‘”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•„›
•—…Š‹†‹˜‹†—ƒŽ•ŠƒŽŽǡ–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡‹…‘‡ˆ”‘•—…Šƒ••‡–•‹•ˆ‘”–Š‡‹‡†‹ƒ–‡‘”†‡ˆ‡””‡†
„‡‡ϐ‹–‘ˆŠ‹••‘ǯ•™‹ˆ‡„‡‹…Ž—†‡†‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆ•—…Š‹†‹˜‹†—ƒŽǤ
Ȉ Income to spouse through a third person [Section 64(1)(vii)]ǣŠ‡”‡ƒ’‡”•‘–”ƒ•ˆ‡”••‘‡ƒ••‡–•
†‹”‡…–Ž›‘”‹†‹”‡…–Ž›–‘ƒ’‡”•‘‘”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ȋ–”—•–‡‡‘”„‘†›‘ˆ–”—•–‡‡•‘”Œ—”‹•–‹…’‡”•‘Ȍ
™‹–Š‘—–ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡‹‡†‹ƒ–‡‘”†‡ˆ‡””‡†„‡‡ϐ‹–‘ˆŠ‹•‘”Š‡”•’‘—•‡ǡƒŽŽ•—…Š‹…‘‡
ƒ•ƒ”‹•‡•†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ˆ”‘ƒ••‡–•–”ƒ•ˆ‡””‡†•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Ȉ Clubbing of Income of Minor Child [Section 64(1A)]ǣŽŽ‹…‘‡™Š‹…Šƒ”‹•‡•‘”ƒ……”—‡•–‘–Š‡‹‘”
…Š‹Ž†ȋ‘–„‡‹‰ƒ‹‘”…Š‹Ž†•—ˆˆ‡”‹‰ˆ”‘ƒ›†‹•ƒ„‹Ž‹–›‘ˆ–Š‡ƒ–—”‡•’‡…‹ϐ‹‡†‹‡…–‹‘ͺͲȌ•ŠƒŽŽ„‡
…Ž—„„‡†‹–Š‡‹…‘‡‘ˆŠ‹•’ƒ”‡–Ǥ‘™‡˜‡”ǡƒ›‹…‘‡™Š‹…Š‹•†‡”‹˜‡†„›–Š‡‹‘”ˆ”‘ƒ—ƒŽ
™‘”‘”ˆ”‘ƒ›ƒ…–‹˜‹–›‹˜‘Ž˜‹‰ƒ’’Ž‹…ƒ–‹‘‘ˆŠ‹••‹ŽŽǡ–ƒŽ‡–‘”•’‡…‹ƒŽ‹•‡†‘™Ž‡†‰‡ƒ†‡š’‡”‹‡…‡
™‹ŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆŠ‹•’ƒ”‡–Ǥ
Ȉ …ƒ•‡–Š‡‹…‘‡‘ˆƒ‹†‹˜‹†—ƒŽ‹…Ž—†‡•ƒ›‹…‘‡‘ˆŠ‹•‹‘”…Š‹Ž†‹–‡”•‘ˆ–Š‹••‡…–‹‘ȏ‹Ǥ‡Ǥ
•‡…–‹‘͸ͶȋͳȌȐǡ•—…Š‹†‹˜‹†—ƒŽ•ŠƒŽŽ„‡‡–‹–Ž‡†–‘‡š‡’–‹‘‘ˆ–Š‡ƒ‘—–‘ˆ•—…Š‹…‘‡‘”•ǤͳǡͷͲͲ
™Š‹…Š‡˜‡”‹•Ž‡••Ǥ
Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 333

Ȉ Income from the Converted Property [Section 64(2)]ǣŠ‡”‡ƒ‹†‹˜‹†—ƒŽǡ„‡‹‰ƒ‡„‡”‘ˆ‹†—

†‹˜‹†‡† ƒ‹Ž›ǡ –”ƒ•ˆ‡”• Š‹• •‡ŽˆǦƒ…“—‹”‡† ’”‘’‡”–› ƒˆ–‡” ͵ͳ•– ‡…‡„‡”ǡ ͳͻ͸ͻ –‘ –Š‡ ˆƒ‹Ž› ˆ‘” –Š‡
…‘‘„‡‡ϐ‹–‘ˆ–Š‡ˆƒ‹Ž›ǡ‘”–Š”‘™‹‰‹–‹–‘–Š‡…‘‘•–‘…‘ˆ–Š‡ˆƒ‹Ž›ǡ‘”–”ƒ•ˆ‡”•‹–†‹”‡…–Ž›‘”
‹†‹”‡…–Ž›–‘–Š‡ˆƒ‹Ž›‘–Š‡”™‹•‡–Šƒˆ‘”ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ǡ•—…Š’”‘’‡”–›‹•‘™ƒ•…‘˜‡”–‡†
’”‘’‡”–›Ǥ
Ȉ Dual Liability for TaxǣŠ‡–ƒš‘–Š‡‹…‘‡‘ˆ–Š‡‘–Š‡”’‡”•‘™Š‹…ŠŠƒ•„‡‡‹…Ž—†‡†‹–Š‡‹…‘‡
‘ˆ–Š‡ƒ••‡••‡‡…ƒ‡‹–Š‡”„‡”‡…‘˜‡”‡†ˆ”‘–Š‡ƒ••‡••‡‡‘”ˆ”‘–Š‡‘–Š‡”’‡”•‘ǤŠ‡Ž‹ƒ„‹Ž‹–›‘ˆ‘–Š‡”
’‡”•‘‹•Ž‹‹–‡†–‘–Š‡’‘”–‹‘‘ˆ–Š‡–ƒšŽ‡˜‹‡†‘–Š‡ƒ••‡••‡‡™Š‹…Š‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡‹…‘‡•‘
‹…Ž—†‡†Ǥ
Ȉ Set Off ƬCarry Forward of lossesǣ‘‡–‹‡•–Š‡ƒ••‡••‡‡‹…—”•ƒŽ‘••ˆ”‘ƒ•‘—”…‡‘ˆ‹…‘‡ƒ†
—Ž‡•••—…ŠŽ‘••‹••‡–Ǧ‘ˆˆƒ‰ƒ‹•–ƒ›‹…‘‡ǡ–Š‡‡–”‡•—Ž–‘ˆ–Š‡ƒ••‡••‡‡ǯ•ƒ…–‹˜‹–‹‡•†—”‹‰–Š‡’ƒ”–‹…—Žƒ”
ƒ……‘—–‹‰ ›‡ƒ” …ƒ‘– „‡ ƒ•…‡”–ƒ‹‡† ƒ† …‘•‡“—‡–Ž› –Š‡ –ƒš ’ƒ›ƒ„Ž‡ ™‘—Ž† ƒŽ•‘ „‡ ‹…ƒ’ƒ„Ž‡ ‘ˆ
†‡–‡”‹ƒ–‹‘Ǥ ‘”–Š‹•’—”’‘•‡ǡ–Š‡…‘‡Ǧ–ƒš…–…‘–ƒ‹••’‡…‹ϐ‹…’”‘˜‹•‹‘•ȋ‡…–‹‘•͹Ͳ–‘ͺͲȌˆ‘”
–Š‡•‡–Ǧ‘ˆˆƒ†…ƒ””›Ǧˆ‘”™ƒ”†‘ˆŽ‘••‡•Ǥ
Ȉ Set-Off of Losses from one source against Income from another source under the same Head of
Income [Section 70]ǣˆ–Š‡‡–”‡•—Ž–ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”‹”‡•’‡…–‘ˆƒ›•‘—”…‡ˆƒŽŽ‹‰—†‡”ƒ›
Š‡ƒ†‘ˆ‹…‘‡‹•ƒŽ‘••ǡ–Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†–‘•‡–‘ˆˆ–Š‡ƒ‘—–‘ˆ•—…ŠŽ‘••ƒ‰ƒ‹•–Š‹•‹…‘‡ˆ”‘
ƒ›‘–Š‡”•‘—”…‡—†‡”–Š‡•ƒ‡Š‡ƒ†Ǥ‘™‡˜‡”ǡ‘••ˆ”‘’‡…—Žƒ–‹‘—•‹‡••ǡ‘••ˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ
‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•ǡŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽŽ‘••…ƒ„‡•‡–Ǧ‘ˆˆˆ”‘ƒ›‘–Š‡”•‘—”…‡‘ˆ‹…‘‡Ǥ
Ȉ Š‡”‡ƒ›‹†‹˜‹†—ƒŽ–”ƒ•ˆ‡”•†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ƒ›ƒ••‡–ȋ‘–Š‡”–ŠƒƒŠ‘—•‡’”‘’‡”–›Ȍ–‘–Š‡•’‘—•‡ǡ
–Š‡‹…‘‡ˆ”‘•—…Šƒ••‡–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡–”ƒ•ˆ‡”‘”Ǥ
Ȉ Carry-Forward and Set-Off of Losses: ˆ‹–‹•‘–’‘••‹„Ž‡–‘•‡–Ǧ‘ˆˆ–Š‡Ž‘••‡•†—”‹‰–Š‡•ƒ‡ƒ••‡••‡–
›‡ƒ”‹™Š‹…Š–Š‡•‡‘……—””‡†ǡ•‘—…Š‘ˆ–Š‡Ž‘••ƒ•Šƒ•‘–„‡‡•‘•‡–Ǧ‘ˆˆ‘—–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰Ž‘••‡•ǡ…ƒ
„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡ˆ‘ŽŽ‘™‹‰ƒ••‡••‡–›‡ƒ”ƒ†•‘‘–‘„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•––Š‡‹…‘‡‘ˆ–Š‘•‡
›‡ƒ”•’”‘˜‹†‡†–Š‡Ž‘••‡•Šƒ˜‡„‡‡†‡–‡”‹‡†‹’—”•—ƒ…‡‘ˆƒ”‡–—”ϐ‹Ž‡†„›–Š‡ƒ•‡••‡‡ƒ†‹–‹•–Š‡
•ƒ‡ƒ••‡••‡‡™Š‘•—•–ƒ‹‡†–Š‡Ž‘••Ǥ
‘™‡˜‡”ǡŽ‘••‡••—ˆˆ‡”‡†—†‡”–Š‡ˆ‘ŽŽ‘™‹‰Š‡ƒ†•ƒ”‡‘–ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆǣ
ȋ‹Ȍ ‘••‡•—†‡”–Š‡Š‡ƒ†ǮƒŽƒ”‹‡•ǯǤ
ȋ‹‹Ȍ ‘••‡•—†‡”–Š‡Š‡ƒ†Ǯ…‘‡ˆ”‘–Š‡”‘—”…‡•ǯǤȋ‡š…‡’–‹‰Ž‘•••—ˆˆ‡”‡†ˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ
‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•ȌǤ
Ȉ Ǥ‡ǤˆǤƒ••‡••‡–›‡ƒ”ʹͲͲͲǦʹͲͲͳǡ‡…–‹‘͹ʹŠƒ•„‡‡•—„•–‹–—–‡†„›ƒ‡™•‡…–‹‘–‘’”‘˜‹†‡ˆ‘”…ƒ””›
ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹…ƒ•‡‘ˆǣ
ȋ‹Ȍ ƒƒŽ‰ƒƒ–‹‘ȏ‡…–‹‘͹ʹȋͳȌǡȋʹȌƒ†ȋ͵ȌȐǡ‘”
ȋ‹‹Ȍ †‡‡”‰‡”ȏ‡…–‹‘͹ʹȋͶȌƒ†ȋͷȐǡ‘”
ȋ‹‹‹Ȍ ”‡‘”‰ƒ‹•ƒ–‹‘‘ˆ„—•‹‡••ȏ‡…–‹‘͹ʹȋ͸ȌȐǤ
Ȉ Submission of Return for Loss (Section 80)ǣƒ••‡••‡‡‹•‘–‡–‹–Ž‡†–‘…ƒ””›Ǧˆ‘”™ƒ”†ƒŽ‘••—Ž‡••
Š‡Šƒ•ϐ‹Ž‡†ƒ”‡–—”‘ˆŽ‘••–‘–Š‡‡’ƒ”–‡–‹–‹‡ƒ†‹–Š‡’”‡•…”‹„‡†ˆ‘”Ǥ–‹•‘„Ž‹‰ƒ–‘”›‘–Š‡
’ƒ”–‘ˆ–Š‡ƒ••‡••‡‡–‘ϐ‹Ž‡•—…Š”‡–—”Ǣ‘–Š‡”™‹•‡Š‡™‹ŽŽ„‡†‡’”‹˜‡†‘ˆ–Š‡„‡‡ϐ‹–‘ˆ…ƒ””›Ǧˆ‘”™ƒ”†‘ˆ
Ž‘••‡•Ǥˆƒ…–ǡ‘Ž›–Šƒ–ƒ‘—–‘ˆŽ‘••‹•ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†Ǧˆ‘”™ƒ”†™Š‹…ŠŠƒ•„‡‡…‘’—–‡†„›–Š‡
••‡••‹‰ˆϐ‹…‡”ƒ†‘–„›–Š‡ƒ••‡••‡‡Ǥ
334 Lesson 5 Ȉ EP-TL

TEST YOURSELF

These are meant for recapitulation only. Answers to these questions are not to be submitted for evaluation.
Multiple Choice Questions “MCQs”
ͳǤ …‘‡‘ˆƒ‹‘”…Š‹Ž†ˆ”‘ƒ ‹š‡†‡’‘•‹–™‹–Šƒ„ƒǡƒ†‡‘—–‘ˆ‹…‘‡‡ƒ”‡†ˆ”‘•…Š‘Žƒ”•Š‹’ǡ ‹•
–‘„‡ǫ
ƒȌ ••‡••‡†‹–Š‡Šƒ†•‘ˆ–Š‡‹‘”…Š‹Ž†
„Ȍ Ž—„„‡†™‹–Š–Š‡‹…‘‡‘ˆ–Š‡’ƒ”‡–™Š‘•‡–‘–ƒŽ‹…‘‡„‡ˆ‘”‡•—…Š…Ž—„„‹‰‹•Š‹‰Š‡”
…Ȍ š‡’–‡†ˆ”‘–ƒš
†Ȍ Ž—„„‡†™‹–Šˆƒ–Š‡”ǯ•‹…‘‡
•™‡”ǣȋ„Ȍ

ʹǤ ƒ””‹‡†ˆ‘”™ƒ”†Ž‘••‡•‘ˆ‘”ƒŽ„—•‹‡••…ƒ„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–‘–Š‡”‹…‘‡‹•—„•‡“—‡–ƒ••‡••‡–
›‡ƒ”‡š…‡’–ǣ
ƒȌ …‘‡ˆ”‘•’‡…—Žƒ–‹‘„—•‹‡••
„Ȍ …‘‡—†‡”–Š‡Š‡ƒ†Š‘—•‡’”‘’‡”–›
…Ȍ …‘‡—†‡”–Š‡Š‡ƒ†‘–Š‡”•‘—”…‡•
†Ȍ …‘‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”‹‡•
•™‡”ǣȋ†Ȍ

͵Ǥ ”ƒ•ˆ‡”‘ˆ‹…‘‡™‹–Š‘—––”ƒ•ˆ‡”‘ˆƒ••‡–™‘—Ž†„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆǣ
ƒȌ ”ƒ•ˆ‡”‘”‘Ž›
„Ȍ ”ƒ•ˆ‡”‡‡‘Ž›
…Ȍ ‹–Š‡”–”ƒ•ˆ‡”‘”‘”–”ƒ•ˆ‡”‡‡
†Ȍ ‘–Š–”ƒ•ˆ‡”‘”ƒ†–”ƒ•ˆ‡”‡‡
•™‡”ǣȋƒȌ

ͶǤ Š‡ƒš‹—’‡”‹‘†ˆ‘”™Š‹…ŠŽ‘••‡•ˆ”‘•’‡…—Žƒ–‹˜‡„—•‹‡••…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†‹•ǣ
ƒȌ Ͷ›‡ƒ”•
„Ȍ ͺ›‡ƒ”•
…Ȍ †‡ϐ‹‹–‡Ž›
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋƒȌ

ͷǤ …‘‡‘ˆ ‹‘” Š‹Ž†ǡ ‹…Ž—†‹„Ž‡ ‹ –Š‡ ‹…‘‡ ‘ˆ Š‹•ȀŠ‡” ’ƒ”‡–• ‹…‘‡ǡ †‡†—…–‹„Ž‡ –‘ –Š‡ ‡š–‡– ‘ˆ
•—…Š‹…‘‡†‘‡•‘–‡š…‡‡†•ˆ‘”‡ƒ…Š‹‘”…Š‹Ž†ǣ
ƒȌ•ǤͷͲͲ
„Ȍ •ǤͳͲͲͲ
…Ȍ •ǤͳͷͲͲ
†Ȍ •ǤʹͲͲͲ
•™‡”ǣȋ…Ȍ
Lesson 5 Ȉ Clubbing Provisions and Set Off and/ or Carry Forward of Losses 335

͸Ǥ ƒ„•‘”„‡† †‡’”‡…‹ƒ–‹‘ ™Š‹…Š …‘—Ž† ‘– „‡ •‡– ‘ˆˆ ‹ –Š‡ ƒ••‡••‡– ›‡ƒ” ‹ ™Š‹…Š ‹– ƒ”‘•‡ǡ …ƒ „‡
…ƒ””‹‡†ˆ‘”™ƒ”†ˆ‘”ǣ
ƒȌ ͺ‡ƒ”•
„Ȍ †‡ϐ‹‹–‡‡”‹‘†
…Ȍ Ͷ‡ƒ”•
†Ȍ ͳʹ‡ƒ”•
•™‡”ǣȋ„Ȍ

͹Ǥ ‘••ˆ”‘–Š‡ƒ…–‹˜‹–›‘ˆ‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•…ƒ„‡•‡–‘ˆˆƒ‰ƒ‹•–̴̴̴̴̴̴̴̴̴̴̴̴̴‘ˆ–Š‡•ƒ‡
ƒ••‡••‡–›‡ƒ”Ǥ
ƒȌ ’‡…—Žƒ–‹‘’”‘ϐ‹–•
„Ȍ ’‡…‹ϐ‹‡†„—•‹‡••’”‘ϐ‹–•
…Ȍ ›„—•‹‡••’”‘ϐ‹–•
†Ȍ …‘‡ˆ”‘‘™‹‰ƒ†ƒ‹–ƒ‹‹‰”ƒ…‡Š‘”•‡•
•™‡”ǣȋ†Ȍ

ͺǤ ‘••ˆ”‘•’‡…‹ϐ‹‡†„—•‹‡••—†‡”‡…–‹‘͵ͷ…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†ˆ‘”ǣ
ƒȌ ͺ‡ƒ”•
„Ȍ ϐ‹‹–‡‡”‹‘†
…Ȍ Ͷ‡ƒ”•
†Ȍ ͳʹ‡ƒ”•
•™‡”ǣȋ„Ȍ

ͻǤ ˆ–Š‡Ž‘••ˆ”‘„—•‹‡••‹••ǤʹͲǡͲͲͲƒ†‹…‘‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”›‹••ǤʹǡͶͲǡͲͲͲ–Š‡–‘–ƒŽ‹…‘‡
‘ˆƒ••‡••‡‡‹•ǣ
ƒȌ •ǤʹǡͶͲǡͲͲͲ
„Ȍ •ǤʹǡʹͲǡͲͲͲ
…Ȍ •ǤʹǡͶͲǡͲͲͲƒ†…ƒ””›ˆ‘”™ƒ”†Ž‘••‘ˆ•ǤʹͲǡͲͲͲ
†Ȍ •ǤʹǡͶͲǡͲͲͲƒ†‘…ƒ””›ˆ‘”™ƒ”†Ž‘••
•™‡”ǣȋ…Ȍ

ͳͲǤ ˆ–†ǤƒƒŽ‰ƒƒ–‡•™‹–Š–†Ǥ–Š‡–Š‡ƒ……——Žƒ–‡†„—•‹‡••Ž‘••‡•ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ
–†Ǥ
ƒȌ …ƒ‘–„‡…ƒ””‹‡†ˆ‘”™ƒ”†„›–†
„Ȍ …ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†„›–†Ǥ
…Ȍ …ƒ‘–„‡…ƒ””‹‡†ˆ‘”™ƒ”†„›–†Ǥ
†Ȍ …ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†„›–†Ǥ
•™‡”ǣȋ„Ȍ
336 Lesson 5 Ȉ EP-TL

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
—„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES (Including Websites and Video Links)

Ȉ Income Tax Act, 1961: https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx

Ȉ Income Tax Rules, 1962:https://www.incometaxindia.gov.in/Pages/rules/income-tax-rules-1962. aspx
Ȉ Circulars: https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
 Deductions from Gross Total
Lesson 6 Income, Rebate and Relief
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ ‡†—…–‹‘
Ȉ Š‡–›’‡‘ˆ†‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡ˆ”‘‰”‘••–‘–ƒŽ‹…‘‡
Ȉ ‡„ƒ–‡
Ȉ ‡”‹••‹„Ž‡†‡†—…–‹‘•‹”‡•’‡…–‘ˆ’ƒ›‡–•
Ȉ ‡Ž‹‡ˆ
Ȉ ‡”‹••‹„Ž‡†‡†—…–‹‘•‹”‡•’‡…–‘ˆ‹…‘‡•
Ȉ ‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡‹–Š‡…ƒ•‡‘ˆƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›
Ȉ ”‘˜‹•‹‘”‡Žƒ–‡†–‘‡„ƒ–‡Ƭ‡Ž‹‡ˆ

Lesson Outline
Ȉ Introduction
Ȉ ’ƒ…–‘ˆ‡…–‹‘ͳͳͷȀͳͳͷ‘†‡†—…–‹‘•
Ȉ ‡†—…–‹‘•ȏ‡…–‹‘•ͺͲ–‘ͺͲȐ
Ȉ ‡„ƒ–‡ƒ†‡Ž‹‡ˆ
Ȉ 
Ȉ 
Ȉ   

Ȉ  

Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ‹…‘‡…‘’—–‡†—†‡”‡ƒ…ŠŠ‡ƒ†ƒˆ–‡”‰‹˜‹‰‡ˆˆ‡…–
–‘–Š‡’”‘˜‹•‹‘•‘ˆ…Ž—„„‹‰‘ˆ‹…‘‡ƒ†‡–Ǧˆˆ‘ˆŽ‘••‡•ǡ‹•‘™
ĥ Dz
”‘•• ‘–ƒŽ …‘‡dzǤ ‡…–‹‘ ͺͲ –‘ ͺͲ ‘ˆ –Š‡ …‘‡ –ƒš …–ǡ
ͳͻ͸ͳŽƒ›•†‘™–Š‡’”‘˜‹•‹‘”‡Žƒ–‹‰–‘–Š‡†‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡–‘
ƒ••‡••‡‡•ˆ”‘–Š‡‹”
”‘••‘–ƒŽ…‘‡Ǥ
 338 Lesson 6 Ȉ EP-TL

INTRODUCTION
Š‡…‘‡Ǧ–ƒš…–’”‘˜‹†‡•˜ƒ”‹‘—•–ƒš‡š‡’–‹‘•ƒ††‡†—…–‹‘•ǤŠ‡‹…‘‡•™Š‹…Šƒ”‡‡š‡’–ˆ”‘–ƒšǡ‹Ǥ‡Ǥǡ
™Š‹…Šƒ”‡‘–‹…Ž—†‡†‹–‘–ƒŽ‹…‘‡ƒ”‡’”‘˜‹†‡†‹‡…–‹‘•ͳͲ–‘ͳ͵‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤŠƒ’–‡”Ǧ
…‘–ƒ‹•†‡†—…–‹‘•ˆ”‘‰”‘••–‘–ƒŽ‹…‘‡—†‡”•‡…–‹‘ͺͲ–‘ͺͲ‹”‡•’‡…–‘ˆ…‡”–ƒ‹’ƒ›‡–•ǡ‹˜‡•–‡–•ǡ
‹…‘‡•ƒ†‘–Š‡”†‡†—…–‹‘•Ǥ‡†—…–‹‘Š‡Ž’•‹”‡†—…‹‰–Š‡–ƒšƒ„Ž‡‹…‘‡Ǥ–†‡…”‡ƒ•‡•–Š‡‘˜‡”ƒŽŽ–ƒšŽ‹ƒ„‹Ž‹–‹‡•
ƒ†Š‡Ž’•–‘•ƒ˜‡–ƒšǤ‘™‡˜‡”ǡ†‡’‡†‹‰‘–Š‡–›’‡‘ˆ–ƒš†‡†—…–‹‘…Žƒ‹ǡ–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘˜ƒ”‹‡•Ǥ
Š‡†‡†—…–‹‘•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›–‘–Š‡ƒ••‡••‡‡•™Š‡”‡–Š‡‰”‘••–‘–ƒŽ‹…‘‡‹•’‘•‹–‹˜‡ǤˆŠ‘™‡˜‡”ǡ–Š‡‰”‘••
–‘–ƒŽ‹…‘‡‹•‹Ž‘”‡‰ƒ–‹˜‡ǡ–Š‡“—‡•–‹‘‘ˆƒ›†‡†—…–‹‘ˆ”‘–Š‡‰”‘••–‘–ƒŽ‹…‘‡†‘‡•‘–ƒ”‹•‡Ǥ ‘”–Š‹•
’—”’‘•‡ǡ–Š‡‡š’”‡••‹‘Ǯ‰”‘••–‘–ƒŽ‹…‘‡ǯ‡ƒ•–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧƒš…–ǡ„‡ˆ‘”‡ƒ‹‰ƒ›†‡†—…–‹‘—†‡”Šƒ’–‡”ǡ‹Ǥ‡Ǥǡ–Š‡ƒ‰‰”‡‰ƒ–‡‹…‘‡
…‘’—–‡†—†‡”‡ƒ…ŠŠ‡ƒ†ǡƒˆ–‡”‰‹˜‹‰‡ˆˆ‡…––‘–Š‡’”‘˜‹•‹‘•ˆ‘”…Ž—„„‹‰‘ˆ‹…‘‡ƒ†•‡–‘ˆˆ‘ˆŽ‘••‡•ǡ‹•‘™
ĥDz
”‘••‘–ƒŽ…‘‡dzǤ‡…–‹‘•ͺͲ–‘ͺͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–Žƒ›†‘™–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–Š‡†‡†—…–‹‘•
ƒŽŽ‘™ƒ„Ž‡–‘ƒ••‡••‡‡•ˆ”‘–Š‡‹”
”‘••‘–ƒŽ…‘‡ǤŠ‡‹…‘‡ƒ”‹•‹‰ƒˆ–‡”†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ
‹•…ƒŽŽ‡†‘–ƒŽ…‘‡Ǥ

IMPACT OF SECTION 115BAC/115BAD ON DEDUCTIONS

‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”†‹˜‹†—ƒŽ•ƒ† •—Ȁ•ͳͳͷ‘ˆ–Š‡…‘‡
ƒš…–ǡͳͻ͸ͳƒ†ˆ‘”‡•‹†‡–‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡•—Ȁ•ͳͳͷ™Ǥ‡ǤˆǤʹͲʹͳǦʹʹ–‘’”‘˜‹†‡ˆ‘”…‘…‡••‹‘ƒŽ
”ƒ–‡‘ˆŽƒ„ƒ–‡•–‘„‡ƒ’’Ž‹‡†‘‘–ƒŽ…‘‡…ƒŽ…—Žƒ–‡†™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ
‡…‡ǡˆ”‘ʹͲʹͳǦʹʹ‘” ʹͲʹͲǦʹͳǡ–Š‡”‡ƒ”‡–™‘‘’‡”ƒ–‹˜‡–ƒš•›•–‡•Ȃ
ͳǤ ‡‹•–Š‡š‹•–‹‰–ƒš•›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš
”ƒ–‡•ƒ”‡ƒ•’‡”–Š‡Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
ʹǤ Š‡•‡…‘†‘‡‹••‡…–‹‘ͳͳͷȀͳͳͷ™Š‹…Š‹•ƒ’–‹‘ƒŽƒš›•–‡ƒ†—†‡”™Š‹…Šƒ›†‡†—…–‹‘•
ƒ†‡š‡’–‹‘•Šƒ˜‡‘–„‡‡ƒŽŽ‘™‡†„—–Ž‘™‡”•Žƒ„–ƒš”ƒ–‡•ƒ”‡’”‘˜‹†‡†‹–Š‡•‡…–‹‘ͳͳͷȀͳͳͷ
‹–•‡ŽˆǤ
Individual and HUF opting for concessional tax regime under section 115BAC: Š‡†‡†—…–‹‘—†‡”Šƒ’–‡”
Ǧ‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͺͲ‘”•‡…–‹‘ͺͲ Ǣ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡†‹˜‹†—ƒŽ
ƒ† ‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ
Resident Co-operative Societies opting for concessional tax regime under section 115BAD:Š‡†‡†—…–‹‘
—†‡”Šƒ’–‡”Ǧ‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͺͲ Ǣ‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡‡•‹†‡–‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›
‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ
Summary of Deductions under Chapter VI-A

Section Nature of deduction Who can claim

(1) (2) (3)
80C Ȉ ‹ˆ‡‹•—”ƒ…‡’”‡‹— †‹˜‹†—ƒŽȀ
Ȉ — ’ƒ‹† –‘™ƒ”†• ‘–‹ϐ‹‡† ƒ—‹–› ’Žƒ ‘ˆ  ‘” ‘–Š‡”
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰
‹•—”‡”ǡƒ…‘–”ƒ…–ˆ‘”ƒ†‡ˆ‡””‡†ƒ—‹–›
ˆ‘”…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡
Ȉ ‘–”‹„—–‹‘•–‘™ƒ”†•’Ž‘›‡‡•ǯ”‘˜‹†‡– —†…Š‡‡ǡ —Ȁ•ͳͳͷȌ
—„Ž‹…”‘˜‹†‡– —†……‘—–ǡƒ”‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†ǡ
ƒ ƒ’’”‘˜‡† •—’‡”ƒ—ƒ–‹‘ ˆ—†ǡ ‘–‹ϐ‹‡† —‹–ǦŽ‹‡†
‹•—”ƒ…‡’Žƒ‘ˆ—–—ƒŽ —†ǡ’ƒ”–‹…‹’ƒ–‹‘‹—‹–ǦŽ‹‡†
•—”ƒ…‡Žƒ‘ˆǡƒ›’‡•‹‘ˆ—†•‡–—’„›ƒ›—–—ƒŽ
ˆ—†™Š‹…Š‹•”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͲȋʹ͵Ȍ‘”„›–Š‡
Ȉ —„•…”‹’–‹‘–‘ƒ›‘–‹ϐ‹‡†•‡…—”‹–›ǡ‘–‹ϐ‹‡††‡’‘•‹–•…Š‡‡
‘ˆ –Š‡ ‡–”ƒŽ
‘˜‡”‡–ǡ ‘–‹ϐ‹‡† •ƒ˜‹‰• …‡”–‹ϐ‹…ƒ–‡•ǡ
‘–‹ϐ‹‡†’‡•‹‘ˆ—†•‡–—’„›ƒ–‹‘ƒŽ‘—•‹‰ƒ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 339

Section Nature of deduction Who can claim

(1) (2) (3)
Ȉ —‹–‹‘ˆ‡‡•’ƒ‹†„›ƒ‹†‹˜‹†—ƒŽ–‘ƒ›—‹˜‡”•‹–›ǡ…‘ŽŽ‡‰‡ǡ
•…Š‘‘Ž‘”‘–Š‡”‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘•‹–—ƒ–‡†‹†‹ƒǡˆ‘”
ˆ—ŽŽ–‹‡‡†—…ƒ–‹‘‘ˆƒ›ʹ‘ˆŠ‹•ȀŠ‡”…Š‹Ž†”‡
Ȉ ‡”–ƒ‹ ’ƒ›‡–• ˆ‘” ’—”…Šƒ•‡Ȁ…‘•–”—…–‹‘ ‘ˆ ”‡•‹†‡–‹ƒŽ
Š‘—•‡’”‘’‡”–›
Ȉ —„•…”‹’–‹‘ –‘ ‘–‹ϐ‹‡† •…Š‡‡• ‘ˆ ȋƒȌ ’—„Ž‹… •‡…–‘”
…‘’ƒ‹‡• ‡‰ƒ‰‡† ‹ ’”‘˜‹†‹‰ Ž‘‰Ǧ–‡” ϐ‹ƒ…‡ ˆ‘”
’—”…Šƒ•‡Ȁ…‘•–”—…–‹‘ ‘ˆ Š‘—•‡• ‹ †‹ƒ ˆ‘” ”‡•‹†‡–‹ƒŽ
’—”’‘•‡•Ȁȋ„Ȍƒ—–Š‘”‹–›…‘•–‹–—–‡†—†‡”ƒ›Žƒ™ˆ‘”•ƒ–‹•ˆ›‹‰
‡‡†ˆ‘”Š‘—•‹‰ƒ……‘‘†ƒ–‹‘‘”ˆ‘”’Žƒ‹‰ǡ†‡˜‡Ž‘’‡–
‘”‹’”‘˜‡‡–‘ˆ…‹–‹‡•ǡ–‘™•ƒ†˜‹ŽŽƒ‰‡•ǡ‘”ˆ‘”„‘–Š
Ȉ —„•…”‹’–‹‘–‘‡“—‹–›•Šƒ”‡•‘”†‡„‡–—”‡•ˆ‘”‹‰’ƒ”–‘ˆ
ƒ› ƒ’’”‘˜‡† ‡Ž‹‰‹„Ž‡ ‹••—‡ ‘ˆ …ƒ’‹–ƒŽ ƒ†‡ „› ƒ ’—„Ž‹…
…‘’ƒ› ‘” ’—„Ž‹… ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘•ǡ ƒ› —‹–• ‘ˆ ƒ›
ƒ’’”‘˜‡† —–—ƒŽ ˆ—† ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͳͲȋʹ͵Ȍǡ
‘–‹ϐ‹‡†„‘†•‹••—‡†„›–Š‡Ǥ
Ȉ ‡”†‡’‘•‹–•ˆ‘”ƒϐ‹š‡†’‡”‹‘†‘ˆ‘–Ž‡••–Šƒͷ›‡ƒ”•™‹–Š
ƒ•…Š‡†—Ž‡†„ƒ‘”’‘•–‘ˆϐ‹…‡
Ȉ ƒ …‘–”‹„—–‹‘ „› …‡–”ƒŽ ‰‘˜–Ǥ ‡’Ž‘›‡‡ –‘ ƒ •’‡…‹ϐ‹‡†
ƒ……‘—–‘ˆ–Š‡’‡•‹‘•…Š‡‡”‡ˆ‡””‡†–‘‹•‡…–‹‘ͺͲ
ˆ‘”ƒϐ‹š‡†’‡”‹‘†‘ˆ‘–Ž‡••–Šƒ–Š”‡‡›‡ƒ”•Ǣ
Ȉ ‡’‘•‹– ‹ ƒ ƒ……‘—– —†‡” –Š‡ ‡‹‘” ‹–‹œ‡ ƒ˜‹‰•
…Š‡‡—Ž‡•ǡʹͲͲͶ
80CCC ‘–”‹„—–‹‘•–‘…‡”–ƒ‹’‡•‹‘ˆ—†•‘ˆ‘”ƒ›‘–Š‡”‹•—”‡”ȋ—’ †‹˜‹†—ƒŽ
–‘•ǤͳǡͷͲǡͲͲͲȌ
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ –ƒš ”‡‰‹‡
—Ȁ•ͳͳͷȌ
80CCD Ȉ ‘–”‹„—–‹‘ –‘ ’‡•‹‘ •…Š‡‡ ‘–‹ϐ‹‡† „› ‡–”ƒŽ

‘˜‡”‡–—’–‘ͳͲΨ‘ˆ•ƒŽƒ”›Ǥ
Ȉ ‘–”‹„—–‹‘ ƒ†‡ „› ‡’Ž‘›‡” •ŠƒŽŽ ƒŽ•‘ „‡ ƒŽŽ‘™‡† ƒ•
†‡†—…–‹‘ —†‡” •‡…–‹‘ ͺͲȋʹȌ ™Š‹Ž‡ …‘’—–‹‰ –‘–ƒŽ
‹…‘‡ ‘ˆ –Š‡ ‡’Ž‘›‡‡Ǥ ‘™‡˜‡”ǡ ƒ‘—– ‘ˆ †‡†—…–‹‘
…‘—Ž†‘–‡š…‡‡†ͳͲΨ‘ˆ•ƒŽƒ”›‘ˆ–Š‡‡’Ž‘›‡‡
‘–‡ǣŠ‡ƒš‹—Ž‹‹–‘ˆ•ǤͳǡͷͲǡͲͲͲ‹•–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡
†‡†—…–‹‘–Šƒ–ƒ›„‡…Žƒ‹‡†—†‡”•‡…–‹‘•ͺͲǡͺͲƒ†
ͺͲǤ‘™‡˜‡”ǡƒ††‹–‹‘ƒŽ†‡†—…–‹‘‘ˆƒš‹—•ǤͷͲǡͲͲͲ
„‡ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͺͲȋͳ„Ȍ‘˜‡”ƒ†ƒ„‘˜‡–Š‡Ž‹‹–‘ˆ
•ǤͳǡͷͲǡͲͲͲǤ
80CCG ͷͲ ’‡” …‡– ‘ˆ ƒ‘—– ‹˜‡•–‡† „› •’‡…‹ϐ‹‡† ”‡•‹†‡– ‹†‹˜‹†—ƒŽ• ‹ ’‡…‹ϐ‹‡† ”‡•‹†‡–
‘–‹ϐ‹‡† ‡“—‹–› •ƒ˜‹‰• •…Š‡‡ ȋ•—„Œ‡…– –‘ …‡”–ƒ‹ …‘†‹–‹‘• ƒ† ‹†‹˜‹†—ƒŽ•ȋ‡™”‡–ƒ‹Ž
Ž‹‹–•Ȍȋƒš‹— †‡†—…–‹‘ǣ•ǤʹͷǡͲͲͲȌ ‹˜‡•–‘”•Ȍ
ȋ‘–˜ƒ‹Žƒ„Ž‡ ‘ ‘’–‹‰
ˆ‘” …‘…‡••‹‘ƒŽ –ƒš
”‡‰‹‡ —Ȁ• ͳͳͷȌ
340 Lesson 6 Ȉ EP-TL

Section Nature of deduction Who can claim

(1) (2) (3)
80D ‘—– ’ƒ‹† ȋ‹ ƒ› ‘†‡ ‘–Š‡” –Šƒ …ƒ•ŠȌ „› ƒ ‹†‹˜‹†—ƒŽ ‘” †‹˜‹†—ƒŽȀ
  –‘ ‘”‘–Š‡”‹•—”‡”–‘‡ˆˆ‡…–‘”‡‡’‹ˆ‘”…‡ƒ‹•—”ƒ…‡‘
–Š‡Š‡ƒŽ–Š‘ˆ•’‡…‹ϐ‹‡†’‡”•‘Ǥ ȋ‘– ˜ƒ‹Žƒ„Ž‡ ‘ ‘’–‹‰
ˆ‘” …‘…‡••‹‘ƒŽ –ƒš
ƒ›‡– –‘™ƒ”†• Š‡ƒŽ–Š •…Š‡‡ ƒ†Ȁ‘” ‘ ƒ……‘—– ‘ˆ ’”‡˜‡–‹˜‡ ”‡‰‹‡ —Ȁ• ͳͳͷȌ
Š‡ƒŽ–Š …Š‡…Ǧ—’
80DD ‡†—…–‹‘‘ˆ•Ǥ͹ͷǡͲͲͲȋ•ǤͳǡʹͷǡͲͲͲ‹…ƒ•‡‘ˆ•‡˜‡”‡†‹•ƒ„‹Ž‹–›Ȍ–‘ ‡•‹†‡–†‹˜‹†—ƒŽȀ
ƒ ”‡•‹†‡– ‹†‹˜‹†—ƒŽȀ  ™Š‡”‡ ȋƒȌ ƒ› ‡š’‡†‹–—”‡ Šƒ• „‡‡
‹…—””‡†ˆ‘” –Š‡‡†‹…ƒŽ–”‡ƒ–‡–ȋ‹…Ž—†‹‰—”•‹‰Ȍǡ–”ƒ‹‹‰ƒ† ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
”‡Šƒ„‹Ž‹–ƒ–‹‘ ‘ˆ ƒ †‡’‡†ƒ–ǡ „‡‹‰ ƒ ’‡”•‘ ™‹–Š †‹•ƒ„‹Ž‹–›ǡ ‘” ȋ„ …‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ƒ›ƒ‘—–‹•’ƒ‹†‘” †‡’‘•‹–‡†—†‡”ƒƒ’’”‘˜‡†•…Š‡‡ˆ”ƒ‡† ͳͳͷȌ
‹ –Š‹• „‡ŠƒŽˆ „› –Š‡  ‘”ƒ›‘–Š‡”‹•—”‡”‘”–Š‡†‹‹•–”ƒ–‘”
‘”–Š‡•’‡…‹ϐ‹‡†…‘’ƒ›ˆ‘”–Š‡ƒ‹–‡ƒ…‡‘ˆƒ†‡’‡†‡–ǡ„‡‹‰ƒ
’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›
80DDB š’‡•‡• ƒ…–—ƒŽŽ› ’ƒ‹† ˆ‘” ‡†‹…ƒŽ –”‡ƒ–‡– ‘ˆ •’‡…‹ϐ‹‡† †‹•‡ƒ•‡• ‡•‹†‡–†‹˜‹†—ƒŽȀ
ƒ†ƒ‹Ž‡–••—„Œ‡…––‘…‡”–ƒ‹…‘†‹–‹‘•
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80E –‡”‡•–‘Ž‘ƒ–ƒ‡ˆ”‘ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘Ȁƒ’’”‘˜‡†…Šƒ”‹–ƒ„Ž‡ †‹˜‹†—ƒŽ
‹•–‹–—–‹‘ˆ‘”’—”•—‹‰Š‹‰Š‡”‡†—…ƒ–‹‘
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80EE –‡”‡•– ’ƒ›ƒ„Ž‡ ‘ Ž‘ƒ –ƒ‡ ˆ”‘ ƒ› ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘ ˆ‘” –Š‡ †‹˜‹†—ƒŽ
’—”’‘•‡‘ˆƒ…“—‹•‹–‹‘‘ˆƒ”‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”–›
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80EEA ƒš‹…‡–‹˜‡•ˆ‘”ƒˆˆ‘”†ƒ„Ž‡Š‘—•‹‰ ŽŽƒ••‡••‡•

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80EEB ƒš‹…‡–‹˜‡•ˆ‘”‡Ž‡…–”‹…˜‡Š‹…Ž‡• ŽŽƒ••‡••‡•

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80G ‘ƒ–‹‘•–‘ …‡”–ƒ‹ƒ’’”‘˜‡† ˆ—†•ǡ –”—•–•ǡ …Šƒ”‹–ƒ„Ž‡ ‹•–‹–—–‹‘•Ȁ ŽŽƒ••‡••‡•
†‘ƒ–‹‘•ˆ‘””‡‘˜ƒ–‹‘‘””‡’ƒ‹”•‘ˆ‘–‹ϐ‹‡†–‡’Ž‡•ǡ‡–…Ǥ
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80GG ‡– ’ƒ‹† ‹ ‡š…‡•• ‘ˆ ͳͲΨ ‘ˆ –‘–ƒŽ ‹…‘‡ ˆ‘” ˆ—”‹•Š‡†Ȁ †‹˜‹†—ƒŽ•  ‘–  ”‡…‡‹˜‹‰
—ˆ—”‹•Š‡†”‡•‹†‡–‹ƒŽƒ……‘‘†ƒ–‹‘ȋ•—„Œ‡…––‘ƒš‹—‘ˆ•Ǥ ƒ› Š‘—•‡”‡–ƒŽŽ‘™ƒ…‡
ͷǡͲͲͲ’ǤǤ‘”ʹͷΨ‘ˆ–‘–ƒŽ‹…‘‡ǡ™Š‹…Š‡˜‡”‹•Ž‡••Ȍ
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 341

Section Nature of deduction Who can claim

(1) (2) (3)
80GGA ‡”–ƒ‹†‘ƒ–‹‘•ˆ‘”•…‹‡–‹ϐ‹…ǡ•‘…‹ƒŽ‘”•–ƒ–‹•–‹…ƒŽ”‡•‡ƒ”…Š‘””—”ƒŽ ŽŽ ƒ••‡••‡‡• ‘– Šƒ˜‹‰
†‡˜‡Ž‘’‡– ’”‘‰”ƒ‡ ‘” ˆ‘” …ƒ””›‹‰ ‘—– ƒ ‡Ž‹‰‹„Ž‡ ’”‘Œ‡…– ‘” ƒ› ‹…‘‡   …Šƒ”‰‡ƒ„Ž‡
•…Š‡‡ ‘”ƒ–‹‘ƒŽ”„ƒ‘˜‡”–›”ƒ†‹…ƒ–‹‘ —† —†‡” –Š‡ Š‡ƒ† Ǯ”‘ϐ‹–• ƒ†
‰ƒ‹• ‘ˆ „—•‹‡•• ‘”
’”‘ˆ‡••‹‘ǯ
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80GGB —…‘–”‹„—–‡†–‘ƒ›’‘Ž‹–‹…ƒŽ’ƒ”–›Ȁ‡Ž‡…–‘”ƒŽ–”—•– †‹ƒ…‘’ƒ›
80GGC —…‘–”‹„—–‡†–‘ƒ›’‘Ž‹–‹…ƒŽ’ƒ”–›Ȁ‡Ž‡…–‘”ƒŽ–”—•– ŽŽ ƒ••‡••‡‡•ǡ ‘–Š‡” –Šƒ
Ž‘…ƒŽ ƒ—–Š‘”‹–› ƒ†
ƒ”–‹ϐ‹…‹ƒŽ Œ—”‹†‹…ƒŽ ’‡”•‘
™Š‘ŽŽ› ‘” ’ƒ”–Ž› ˆ—†‡† „›

‘˜‡”‡–
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
For certain incomes
80-IA ”‘ϐ‹–• ƒ† ‰ƒ‹• ˆ”‘ ‹†—•–”‹ƒŽ —†‡”–ƒ‹‰• ‡‰ƒ‰‡† ‹ ŽŽƒ••‡••‡•
‹ˆ”ƒ•–”—…–—”‡ ˆƒ…‹Ž‹–›ǡ –‡Ž‡…‘—‹…ƒ–‹‘ •‡”˜‹…‡•ǡ ‹†—•–”‹ƒŽ ’ƒ”ǡ
†‡˜‡Ž‘’‡–‘ˆ’‡…‹ƒŽ …‘‘‹…‘‡ǡ’‘™‡”—†‡”–ƒ‹‰•ǡ‡–…Ǥ ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80-IAB ”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†„›—†‡”–ƒ‹‰Ȁ‡–‡”’”‹•‡ˆ”‘„—•‹‡•• ••‡••‡‡ „‡‹‰ ‡˜‡Ž‘’‡”
‘ˆ†‡˜‡Ž‘’‹‰ƒ’‡…‹ƒŽ…‘‘‹…‘‡‘–‹ϐ‹‡†‘‘”ƒˆ–‡”ͳǦͶǦʹͲͲͷ ‘ˆ 

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80-IB ”‘ϐ‹–• ƒ† ‰ƒ‹• ˆ”‘ ‹†—•–”‹ƒŽ —†‡”–ƒ‹‰•ǡ …‘Ž† •–‘”ƒ‰‡ ’Žƒ–ǡ ŽŽƒ••‡••‡•
Š‘–‡Žǡ •…‹‡–‹ϐ‹… ”‡•‡ƒ”…Š Ƭ †‡˜‡Ž‘’‡–ǡ ‹‡”ƒŽ ‘‹Ž …‘…‡”ǡ
Š‘—•‹‰ ’”‘Œ‡…–•ǡ …‘Ž† …Šƒ‹ ˆƒ…‹Ž‹–›ǡ —Ž–‹’Ž‡š –Š‡ƒ–”‡•ǡ …‘˜‡–‹‘ ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‡–”‡•ǡ•Š‹’•ǡ‡–…Ǥ …‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80-IC ”‘ϐ‹–• ƒ† ‰ƒ‹• †‡”‹˜‡† „› ƒ —†‡”–ƒ‹‰ ‘” ƒ ‡–‡”’”‹•‡ ‹ ŽŽƒ••‡••‡•
•’‡…‹ƒŽ …ƒ–‡‰‘”› –ƒ–‡• ȋ‹ƒ…ŠƒŽ ”ƒ†‡•Šǡ ––ƒ”ƒ…ŠƒŽǡ ”—ƒ…ŠƒŽ
”ƒ†‡•Šǡ••ƒǡƒ‹’—”ǡ‡‰ŠƒŽƒ›ƒǡ‹œ‘”ƒǡƒ‰ƒŽƒ†ƒ†”‹’—”ƒȌ ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80IAC ‡†—…–‹‘‹”‡•’‡…–‘ˆ‡Ž‹‰‹„Ž‡–ƒ”–Ǧ’ ŽŽƒ••‡••‡•

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80IBA ‡†—…–‹‘•‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‘—•‹‰”‘Œ‡…–• ŽŽƒ••‡••‡•

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
342 Lesson 6 Ȉ EP-TL

Section Nature of deduction Who can claim

(1) (2) (3)
80IC ’‡…‹ƒŽ ’”‘˜‹•‹‘• ‹ ”‡•’‡…– ‘ˆ …‡”–ƒ‹ —†‡”–ƒ‹‰• ‘” ‡–‡”’”‹•‡• ŽŽƒ••‡••‡•
‹ …‡”–ƒ‹•’‡…‹ƒŽ…ƒ–‡‰‘”›–ƒ–‡•
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80-ID ”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘„—•‹‡••‘ˆŠ‘–‡Ž•ƒ†…‘˜‡–‹‘…‡–‡”• ŽŽƒ••‡••‡•
‹•’‡…‹ϐ‹‡†ƒ”‡ƒ• ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80-IE ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹—†‡”–ƒ‹‰•‹‘”–Šƒ•–‡”–ƒ–‡•Ǥ ŽŽƒ••‡••‡•
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80JJA –‹”‡ ‹…‘‡ ˆ”‘ „—•‹‡•• ‘ˆ …‘ŽŽ‡…–‹‰ ƒ† ’”‘…‡••‹‰ ‘” ŽŽƒ••‡••‡•
–”‡ƒ–‹‰‘ˆ„‹‘Ǧ†‡‰”ƒ†ƒ„Ž‡ ™ƒ•–‡ ˆ‘” ‰‡‡”ƒ–‹‰ ’‘™‡”ǡ ‘” ’”‘†—…‹‰
„‹‘Ǧˆ‡”–‹Ž‹œ‡”•ǡ „‹‘Ǧ’‡•–‹…‹†‡• ‘” ‘–Š‡” „‹‘Ž‘‰‹…ƒŽ ƒ‰‡–• ‘” ˆ‘” ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
’”‘†—…‹‰ „‹‘Ǧ‰ƒ•ǡ ƒ‹‰ ’‡ŽŽ‡–• ‘” „”‹“—‡––‡• ˆ‘” ˆ—‡Ž ‘” ‘”‰ƒ‹… …‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ƒ—”‡ ͳͳͷȀͳͳͷȌ
80JJAA ††‹–‹‘ƒŽ ™ƒ‰‡• ’ƒ‹† –‘ ‡™ ”‡‰—Žƒ” ™‘”‡ ‡’Ž‘›‡† ‹ –Š‡ ••‡••‡‡Šƒ˜‹‰’”‘ϐ‹–•
’”‡˜‹‘—• ›‡ƒ”ˆ‘”͵ƒ••‡••‡–›‡ƒ”• ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘
ƒ—ˆƒ…–—”‡‘ˆ‰‘‘†•‹ƒ
ˆƒ…–‘”›
80LA ‡”–ƒ‹‹…‘‡•‘ˆ…Š‡†—Ž‡†„ƒ•Ȁ„ƒ•‹…‘”’‘”ƒ–‡†‘—–•‹†‡ …Š‡†—Ž‡†„ƒ•Ȁ„ƒ•
India ‹…‘”’‘”ƒ–‡† ‘—–•‹†‡
†‹ƒ Šƒ˜‹‰ˆˆ•Š‘”‡
ƒ‹‰‹–•‹ ƒ ’‡…‹ƒŽ
…‘‘‹… ‘‡Ȁ ‹–•‘ˆ
–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ
‡”˜‹…‡•‡–”‡

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȀͳͳͷȌ
80M ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹–‡”Ǧ…‘”’‘”ƒ–‡†‹˜‹†‡†• ‘‡•–‹…‘’ƒ›
[Inserted vide Finance Act, 2020]
80P ’‡…‹ϐ‹‡†‹…‘‡• ‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆor
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80PA ’‡…‹ϐ‹‡†‹…‘‡• ”‘†—…‡”‘’ƒ›
80QQB ‘›ƒŽ–› ‹…‘‡ ‘ˆ ƒ—–Š‘” ‘ˆ …‡”–ƒ‹ •’‡…‹ϐ‹‡† …ƒ–‡‰‘”› ‘ˆ „‘‘• ‡•‹†‡– †‹˜‹†—ƒŽ Ǧ
ȋ—’ –‘•Ǥ͵ǡͲͲǡͲͲͲȌ —–Š‘”

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 343

Section Nature of deduction Who can claim

(1) (2) (3)
80RRB ‘›ƒŽ–›‘’ƒ–‡–•—’–‘•Ǥ͵ǡͲͲǡͲͲͲ ‡•‹†‡– ‹†‹˜‹†—ƒŽ• ™Š‘
‹• ƒ ’ƒ–‡–‡‡ ƒ† ‹• ‹
”‡…‡‹’–‘ˆ‹…‘‡„›™ƒ›‘ˆ
”‘›ƒŽ–› ‹ ”‡•’‡…– ‘ˆ ƒ
’ƒ–‡– ”‡‰‹•–‡”‡† ‘ ‘”
ƒˆ–‡”ͳǦͶǦʹͲͲ͵

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80TTA –‡”‡•– ‘ †‡’‘•‹–• ‹ •ƒ˜‹‰• „ƒ ƒ……‘—–• ȋ—’ –‘ •Ǥ ͳͲǡͲͲͲ ’‡” †‹˜‹†—ƒŽ•Ȁ •
›‡ƒ”Ȍ
ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80TTB –‡”‡•–‘†‡’‘•‹–•‹…ƒ•‡‘ˆ•‡‹‘”…‹–‹œ‡•—’–‘•ǤͷͲǡͲͲͲ ‡‹‘”‹–‹œ‡†‹˜‹†—ƒŽ•

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
80U ‡†—…–‹‘ ‘ˆ •Ǥ ͹ͷǡͲͲͲǡ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ’‡”•‘ ™‹–Š •‡˜‡”‡ ‡•‹†‡– ‹†‹˜‹†—ƒŽ• ™Š‘ǡ
†‹•ƒ„‹Ž‹–›ǡ ƒŽŽ‘™ƒ„Ž‡†‡†—…–‹‘‹••ǤͳǡʹͷǡͲͲͲ at ƒ› –‹‡ †—”‹‰ –Š‡
’”‡˜‹‘—• ›‡ƒ”ǡ ‹• …‡”–‹ϐ‹‡†
„›–Š‡‡†‹…ƒŽƒ—–Š‘”‹–› –‘
„‡ ƒ ’‡”•‘ ™‹–Š†‹•ƒ„‹Ž‹–›

ȋ‘–˜ƒ‹Žƒ„Ž‡‘‘’–‹‰ˆ‘”
…‘…‡••‹‘ƒŽ–ƒš”‡‰‹‡—Ȁ•
ͳͳͷȌ
Rebates
87A ‡„ƒ–‡‘ˆ•ǤͳʹǡͷͲͲ‘”–Š‡‹…‘‡–ƒš™Š‹…Š‡˜‡”‹•Ž‡•• ‡•‹†‡– ‹†‹˜‹†—ƒŽ ™Š‘•‡
–‘–ƒŽ ‹…‘‡ †‘‡• ‘–
‡š…‡‡† ϐ‹˜‡ŽƒŠ”—’‡‡•

DEDUCTIONS

Deduction in respect of investments [Section 80C]

 344 Lesson 6 Ȉ EP-TL

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ȋƒȌƒ‹†‹˜‹†—ƒŽǢȋ„Ȍƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ˆ‘”‹˜‡•–‡–•ƒ†‡‹•’‡…‹ϐ‹‡†
ƒ••‡–••—„Œ‡…––‘ƒƒš‹—ƒ‘—–‘ˆ•ǤͳǡͷͲǡͲͲͲǤ
Š‡•’‡…‹ϐ‹‡†˜‡•–‡–•‹…Ž—†‡ǣ
ƒȌ ”‡‹—’ƒ‹†‘Ž‹ˆ‡•—”ƒ…‡’‘Ž‹…›–ƒ‡‘–Š‡Ž‹ˆ‡‘ˆƒ‹†‹˜‹†—ƒŽƒ••‡••‡‡‘”•’‘—•‡ƒ†ƒ›…Š‹Ž†
‘ˆ•—…Š‹†‹˜‹†—ƒŽǡƒ†ƒ›‡„‡”‘ˆ–Š‡‹†—†‹˜‹†‡† ƒ‹Ž›•—„Œ‡…––‘ƒƒš‹—‘ˆͳͲΨ‘ˆ–Š‡
ƒ…–—ƒŽ•—ƒ••—”‡†ǡ‹ˆ‹•—”ƒ…‡’‘Ž‹…›‹•–ƒ‡‘‘”ƒˆ–‡”ͳǤͲͶǤʹͲͳʹǤ—–‹ˆǡ‹•—”ƒ…‡’‘Ž‹…›‹•–ƒ‡‘
‘”„‡ˆ‘”‡͵ͳǤͲ͵ǤʹͲͳʹǡ–Š‡ƒš‹—Ž‹‹–‹•ʹͲΨ‘ˆƒ…–—ƒŽ•—ƒ••—”‡†Ǥ —”–Š‡”ǡ‹ˆ‹•—”ƒ…‡’‘Ž‹…›‹•
–ƒ‡‘‘”ƒˆ–‡”ͲͳǤͲͶǤʹͲͳ͵ƒ†–Š‡’‘Ž‹…›‹•‘–Š‡Ž‹ˆ‡‘ˆƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›‘”•‡˜‡”‡†‹•ƒ„‹Ž‹–›
‡–‹‘‡†‹‡…–‹‘ͺͲ‘”ƒ’‡”•‘•—ˆˆ‡”‹‰ˆ”‘ƒ†‹•‡ƒ•‡‘”ƒŽ‹‡–‡–‹‘‡†‹‡…–‹‘ͺͲǡ
–Š‡ͳͷΨ‘ˆƒ…–—ƒŽ•—ƒ••—”‡†Ǥ
 Dzactual sum assured” in relation to a life insurance policy shall mean the minimum amount assured under the
policy on happening of the insured event at any time during the term of the policy, not taking into account –
ͳǤ –Š‡˜ƒŽ—‡‘ˆƒ›’”‡‹—ƒ‰”‡‡†–‘„‡”‡–—”‡†Ǣ‘”
ʹǤ ƒ›„‡‡ϐ‹–„›™ƒ›‘ˆ„‘—•‘”‘–Š‡”™‹•‡‘˜‡”ƒ†ƒ„‘˜‡–Š‡•—ƒ…–—ƒŽŽ›ƒ••—”‡†ǡ™Š‹…Š‹•–‘„‡
‘”ƒ›„‡”‡…‡‹˜‡†—†‡”–Š‡’‘Ž‹…›„›ƒ›’‡”•‘Ǥ
„Ȍ ‘—–•’ƒ‹†–‘‡ˆˆ‡…–‘”–‘‡‡’‹ˆ‘”…‡ƒ…‘–”ƒ…–ˆ‘”ƒ‘Ǧ…——Žƒ–‹˜‡†‡ˆ‡””‡†ƒ—‹–›‘–„‡‹‰ƒ
ƒ—‹–›’Žƒ”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋŒȌ„‡Ž‘™‘–Š‡Ž‹ˆ‡‘ˆǣȋ‹Ȍ‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ–Š‡‹†‹˜‹†—ƒŽǡ
•’‘—•‡‘”ƒ›…Š‹Ž†‘ˆ•—…Š‹†‹˜‹†—ƒŽƒ†
 ‘™‡˜‡”ǡ•—…Š…‘–”ƒ…–•Š‘—Ž†‘–…‘–ƒ‹ƒ’”‘˜‹•‹‘ˆ‘”‡š‡”…‹•‡‘ˆƒ‘’–‹‘„›–Š‡‹•—”‡†–‘”‡…‡‹˜‡
…ƒ•Š’ƒ›‡–‹Ž‹‡—‘ˆ–Š‡’ƒ›‡–‘ˆ–Š‡ƒ—‹–›Ǥ
…Ȍ ‡†—…–‹‘ˆ”‘–Š‡•ƒŽƒ”›’ƒ›ƒ„Ž‡„›‘”‘„‡ŠƒŽˆ‘ˆ–Š‡
‘˜‡”‡––‘ƒ›‹†‹˜‹†—ƒŽǡ‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡…‘†‹–‹‘•‘ˆŠ‹••‡”˜‹…‡ǡˆ‘”•‡…—”‹‰–‘Š‹ƒ†‡ˆ‡””‡†ƒ—‹–›‘”ƒ‹‰’”‘˜‹•‹‘ˆ‘”Š‹•™‹ˆ‡‘”
…Š‹Ž†”‡ǡ–‘–Š‡‡š–‡–‘ˆ‘‡Ǧϐ‹ˆ–Š‘ˆ•ƒŽƒ”›Ǥ
†Ȍ ‘–”‹„—–‹‘ƒ†‡„›ƒ‹†‹˜‹†—ƒŽ–‘ƒ‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†Ǣƒƒ’’”‘˜‡†•—’‡”ƒ—ƒ–‹‘ˆ—†Ǣ
’—„Ž‹…’”‘˜‹†‡–ˆ—†Ǣƒ–‡Ǧ›‡ƒ”ƒ……‘—–‘”ƒϐ‹ˆ–‡‡Ǧ›‡ƒ”ƒ……‘—–—†‡”–Š‡‘•–ˆϐ‹…‡ƒ˜‹‰•ƒ
ȋ——Žƒ–‹˜‡‹‡‡’‘•‹–•Ȍ—Ž‡•ǡͳͻͷͻǤ
‡Ȍ —”…Šƒ•‡‘ˆ‘–‹ϐ‹‡†•‡…—”‹–‹‡•‘”†‡’‘•‹–•…Š‡‡‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ—ƒ›ƒƒ”‹††Š‹……‘—–
…Š‡‡Šƒ•„‡‡‘–‹ϐ‹‡†Ǥ
ˆȌ —„•…”‹’–‹‘ –‘ ‘–Š‡” ‘–‹ϐ‹‡† •ƒ˜‹‰• …‡”–‹ϐ‹…ƒ–‡• †‡ϐ‹‡† ‹ ‡…–‹‘ ʹȋ…Ȍ ‘ˆ –Š‡
‘˜‡”‡– ƒ˜‹‰•
‡”–‹ϐ‹…ƒ–‡•…–ǡͳͻͷͻȏ ‘”–Š‹•…Žƒ—•‡ǡƒ–‹‘ƒŽƒ˜‹‰•‡”–‹ϐ‹…ƒ–‡•ȋƬȌ‹••—‡Šƒ•„‡‡‘–‹ϐ‹‡†Ȑƒ†
‹–‡”‡•–ƒ……—”‡††‡‡‡†–‘„‡”‡‹˜‡•–‡†ƒŽ•‘“—ƒŽ‹ϐ‹‡•Ǥ
‰Ȍ ‘–”‹„—–‹‘•ƒ†‡„›ƒ‹†‹˜‹†—ƒŽ‘” ǡˆ‘”’ƒ”–‹…‹’ƒ–‹‘‹–Š‡‹–Ǧ‹‡†•—”ƒ…‡Žƒǡͳͻ͹ͳǡ
†‡‡‡†–‘Šƒ˜‡„‡‡ƒ†‡—†‡”‡…–‹‘ͳͻȋͺȌȋƒȌ‘ˆ–Š‡‹–”—•–‘ˆ†‹ƒ…–ǡͳͻ͸͵Ǥȏ ‘”–Š‹•…Žƒ—•‡ǡ
Šƒƒ”ƒ•ŠƒǦͳͻͺͻ’Žƒ‘ˆ—–—ƒŽ —†Šƒ•„‡‡‘–‹ϐ‹‡†ȐǤ
ŠȌ ‘–”‹„—–‹‘• ƒ†‡ ‹ –Š‡ ƒ‡ ‘ˆ ƒ ‹†‹˜‹†—ƒŽ ‘”   ˆ‘” ’ƒ”–‹…‹’ƒ–‹‘ ‹ ƒ› ‘–‹ϐ‹‡† ‹–Ǧ‹‡†
•—”ƒ…‡Žƒ‘ˆ–Š‡—–—ƒŽ —†Ǥ
‹Ȍ ›…‘–”‹„—–‹‘–‘‡ˆˆ‡…–‘”‡‡’‹ˆ‘”…‡ƒ›‘–‹ϐ‹‡†ƒ—‹–›’Žƒ‘ˆ–Š‡‘”ƒ›‘–Š‡”‹•—”‡”Ǥ
ŒȌ › •—„•…”‹’–‹‘ǡ –‘ ƒ› —‹–• ‘ˆ ƒ› —–—ƒŽ —† ‘” –Š‡ ‹– ”—•– ‘ˆ †‹ƒ —†‡” ƒ› ‘–‹ϐ‹‡† ’Žƒ
ˆ‘”—Žƒ–‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
Ȍ ›…‘–”‹„—–‹‘–‘ƒ›’‡•‹‘ˆ—†•‡–—’„›ƒ›—–—ƒŽ —†ƒ•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
ŽȌ —„•…”‹’–‹‘ –‘ –Š‡ ‘–‹ϐ‹‡† †‡’‘•‹– •…Š‡‡ ‘ˆ ‘” …‘–”‹„—–‹‘ –‘ ƒ› •—…Š ’‡•‹‘ ˆ—† •‡– —’ „› –Š‡
ƒ–‹‘ƒŽ ‘—•‹‰ ƒ ‡•–ƒ„Ž‹•Š‡† —†‡” ‡…–‹‘ ͵ ‘ˆ –Š‡ ƒ–‹‘ƒŽ ‘—•‹‰ ƒ …–ǡ ͳͻͺ͹Ǥ ȏ ‘” –Š‹•
…Žƒ—•‡ǡ‘‡‘ƒ……‘—–…Š‡‡‘ˆƒ–‹‘ƒŽ‘—•‹‰ƒŠƒ•„‡‡‘–‹ϐ‹‡†ȐǤ
Ȍ —„•…”‹’–‹‘’ƒ‹†–‘™ƒ”†••…Š‡‡‘ˆǣǦ
ͳȌ —„Ž‹… •‡…–‘” …‘’ƒ› ‡‰ƒ‰‡† ‹ ’”‘˜‹†‹‰ Ž‘‰ –‡” ϐ‹ƒ…‡ ˆ‘” ’—”…Šƒ•‡ ‘” …‘•–”—…–‹‘ ‘ˆ
Š‘—•‡•‹†‹ƒȋ’—„Ž‹…†‡’‘•‹–•…Š‡‡‘ˆȌǤ
ʹȌ ‘—•‹‰„‘ƒ”†…‘•–‹–—–‡†‹†‹ƒˆ‘”’Žƒ‹‰ǡ†‡˜‡Ž‘’‡–‘”‹’”‘˜‡‡–‘ˆ…‹–‹‡•‘”–‘™•Ǥ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 345

Ȍ Ž›–—‹–‹‘ˆ‡‡•ȋ‡š…Ž—†‹‰ƒ›’ƒ›‡––‘™ƒ”†•ƒ›†‡˜‡Ž‘’‡–ˆ‡‡•‘”†‘ƒ–‹‘‘”’ƒ›‡–‘ˆ•‹‹Žƒ”
ƒ–—”‡Ȍǡ™Š‡–Š‡”ƒ––Š‡–‹‡‘ˆƒ†‹••‹‘‘”–Š‡”‡ƒˆ–‡”ǡǦȋˆ‘”ˆ—ŽŽ–‹‡‡†—…ƒ–‹‘‘ˆƒ›ʹ…Š‹Ž†”‡Ȍ–‘ƒ›
—‹˜‡”•‹–›ǡ…‘ŽŽ‡‰‡ǡ•…Š‘‘Ž‘”‘–Š‡”‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘•‹–—ƒ–‡†™‹–Š‹†‹ƒǤ
‘Ȍ ‘”’—”…Šƒ•‡‘”…‘•–”—…–‹‘‘ˆƒ”‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”–›ǡ–Š‡‹…‘‡‘ˆ™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘—•‡”‘’‡”–›dzǡ™Š‡”‡•—…Š’ƒ›‡–•ƒ”‡ƒ†‡–‘™ƒ”†•‘”„›™ƒ›‘ˆǣ
‹Ǥ ƒ›‹•–ƒŽŽ‡–‘”’ƒ”–’ƒ›‡–‘ˆ–Š‡ƒ‘—–†—‡–‘™ƒ”†•–Š‡…‘•–‘ˆ–Š‡Š‘—•‡’”‘’‡”–›ƒŽŽ‘––‡†
‘”…‘•–”—…–‹‘ƒ†•ƒŽ‡‘ˆŠ‘—•‡’”‘’‡”–›‘‘™‡”•Š‹’„ƒ•‹•Ǣ‘”
‹‹Ǥ Ǧ’ƒ›‡– ‘ˆ ƒ› Ž‘ƒ –ƒ‡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ’—”…Šƒ•‡ ‘” …‘•–”—…–‹‘ ‘ˆ ”‡•‹†‡–‹ƒŽ Š‘—•‡
’”‘’‡”–›•—„Œ‡…––‘•‘‡…‘†‹–‹‘•Ǥ
’Ȍ —„•…”‹’–‹‘–‘‡“—‹–›•Šƒ”‡•‘”†‡„‡–—”‡•‘”—‹–•ˆ‘”‹‰’ƒ”–‘ˆƒ›‡Ž‹‰‹„Ž‡‹••—‡‘ˆ…ƒ’‹–ƒŽǡ‹Ǥ‡Ǥǡ‹••—‡
ƒ†‡„›ƒ…‘’ƒ›”‡‰‹•–‡”‡†‹†‹ƒ‘”ƒ’—„Ž‹…ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘‘”ƒƒ’’”‘˜‡†—–—ƒŽˆ—†ˆ‘”–Š‡
’—”’‘•‡‘ˆ†‡˜‡Ž‘’‹‰ǡƒ‹–ƒ‹‹‰ƒ†‘’‡”ƒ–‹‰ƒ‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›ƒ•†‡ϐ‹‡†‹–Š‡‡š’Žƒƒ–‹‘
–‘—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ‡…–‹‘ͺͲǦ‘”ˆ‘”‰‡‡”ƒ–‹‘ǡ‘”ˆ‘”‰‡‡”ƒ–‹‘ƒ††‹•–”‹„—–‹‘‘ˆ’‘™‡”‘”ˆ‘”
’”‘˜‹†‹‰–‡Ž‡…‘—‹…ƒ–‹‘•‡”˜‹…‡•™Š‡–Š‡”„ƒ•‹…‘”…‡ŽŽ—Žƒ”Ǥ
“Ȍ ‹š‡††‡’‘•‹–•ˆ‘”ƒ‹‹—’‡”‹‘†‘ˆͷ›‡ƒ”•‹ƒ›…Š‡†—Ž‡†ƒ•Ǥ
”Ȍ ••—„•…”‹’–‹‘–‘•—…Š„‘†•‹••—‡†„›–Š‡ƒ–‹‘ƒŽƒˆ‘”‰”‹…—Ž–—”‡ƒ†—”ƒŽ‡˜‡Ž‘’‡–ǡƒ•–Š‡
‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡•’‡…‹ˆ›‹–Š‹•„‡ŠƒŽˆǤ
•Ȍ ‘—–†‡’‘•‹–‡†‹ƒƒ……‘—–—†‡”–Š‡‡‹‘”‹–‹œ‡•ƒ˜‹‰•…Š‡‡—Ž‡•ǡʹͲͲͶǤ
–Ȍ •ϐ‹˜‡›‡ƒ”–‹‡†‡’‘•‹–‹ƒƒ……‘—–—†‡”–Š‡‘•–ˆϐ‹…‡‹‡‡’‘•‹–—Ž‡•ǡͳͻͺͳǤ
—Ȍ ƒ…‘–”‹„—–‹‘„›…‡–”ƒŽ‰‘˜–Ǥ‡’Ž‘›‡‡–‘ƒ•’‡…‹ϐ‹‡†ƒ……‘—–‘ˆ–Š‡’‡•‹‘•…Š‡‡”‡ˆ‡””‡†–‘‹•‡…–‹‘
ͺͲˆ‘”ƒϐ‹š‡†’‡”‹‘†‘ˆ‘–Ž‡••–Šƒ–Š”‡‡›‡ƒ”•Ǣƒ†–Š‡•…Š‡‡‘–‹ϐ‹‡†„›‡–”ƒŽ
‘˜‡”‡–Ǥ
˜Ȍ ‘–”‹„—–‹‘ƒ†‡„›ƒ‡–”ƒŽ
‘˜–Ǥ‡’Ž‘›‡‡–‘Š‹•‹‡”Ǧƒ……‘—–ˆ‘”ƒϐ‹š‡†’‡”‹‘†‘–Ž‡••–Šƒ
͵›‡ƒ”•Ǥȋ™Ǥ‡ǤˆǤ••‡••‡–‡ƒ”ʹͲǦʹͳȌǤ
Deduction for Contribution to Pension Fund [Section 80CCC]
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘™‹–Š”‡•’‡…––‘ƒ‘—–†‡’‘•‹–‡†„›ƒ‹†‹˜‹†—ƒŽ‘—–‘ˆŠ‹•–ƒšƒ„Ž‡‹…‘‡–‘
ƒ› ƒ—‹–› ’Žƒ ‘ˆ –Š‡ ‹ˆ‡ •—”ƒ…‡ ‘”’‘”ƒ–‹‘ ‘ˆ †‹ƒ ‘” ƒ› ‹•—”‡” ƒ’’”‘˜‡† „› –Š‡  ˆ‘” ”‡…‡‹˜‹‰
’‡•‹‘•—„Œ‡…––‘ƒƒš‹—‘ˆ•ǤͳǡͷͲǡͲͲͲǤ
‘†‡†—…–‹‘ˆ‘”–Š‹•…‘–”‹„—–‹‘™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡—Ȁ•ͺͲǤŠ‡’‡•‹‘”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡‘”Š‹•‘‹‡‡
‹•–ƒšƒ„Ž‡‹–Š‡›‡ƒ”‘ˆ”‡…‡‹’–Ǥ
ˆ–Š‡ƒ••‡‡•‡‡‘”Š‹•‘‹‡‡•—””‡†‡”•–Š‡ƒ—‹–›„‡ˆ‘”‡‹–•ƒ–—”‹–›ǡ–Š‡•—””‡†‡”˜ƒŽ—‡‹…Ž—†‹‰„‘—•Ȁ
‹–‡”‡•–‹•–ƒšƒ„Ž‡‹–Š‡›‡ƒ”‘ˆ”‡…‡‹’–Ǥ
Deduction in respect of Contribution to Pension Scheme of Central Government [Section 80CCD]
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘™‹–Š”‡•’‡…––‘‡’Ž‘›‡”•ƒ†‡’Ž‘›‡‡•…‘–”‹„—–‹‘–‘’‡•‹‘•…Š‡‡™Š‹…Š
‹•ƒ’’Ž‹…ƒ„Ž‡–‘‡™‡’Ž‘›‡‡•‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‡’Ž‘›‡†‘‘”ƒˆ–‡”ͲͳǤͲͳǤʹͲͲͶ‘”„‡‹‰ƒ‹†‹˜‹†—ƒŽ
‡’Ž‘›‡† „› ƒ› ‘–Š‡” ‡’Ž‘›‡”Ǥ – ‹• ƒ†ƒ–‘”› ˆ‘” •—…Š ‡’Ž‘›‡‡ –‘ …‘–”‹„—–‡ ͳͲΨ ‘ˆ •ƒŽƒ”› ‡˜‡”› ‘–Š
–‘™ƒ”†•–Š‡’‡•‹‘•…Š‡‡ǤͳͲΨ…‘–”‹„—–‹‘‹•”‡“—‹”‡†–‘„‡ƒ†‡„›–Š‡‡’Ž‘›‡”ƒŽ•‘ǤȏͳͶΨ‹…ƒ•‡™Š‡”‡
‡’Ž‘›‡”‹•‡–”ƒŽ
‘˜–Ǥƒ•ƒ’’”‘˜‡†„›‹‘…ƒ„‹‡–‡‡–‹‰‘͸ȀͳʹȀʹͲͳͺȐ
• ’‡” •‡…–‹‘ ͺͲ ȋͳȌǡ ‡’Ž‘›‡‡• …‘–”‹„—–‹‘ –‘™ƒ”†• –Š‡ ‘–‹ϐ‹‡† ’‡•‹‘ •…Š‡‡ ‹• †‡†—…–‹„Ž‡ǡ „—– —’–‘
ƒš‹—‘ˆͳͲΨ‘ˆ–Š‡•ƒŽƒ”›‘ˆ‡’Ž‘›‡‡Ǥ•’‡”•‡…–‹‘ͺͲȋͳȌǡƒƒ††‹–‹‘ƒŽ†‡†—…–‹‘‘ˆƒš‹—•Ǥ
ͷͲǡͲͲͲ …ƒ ƒŽ•‘ „‡ ƒ˜ƒ‹Ž‡†Ǥ Š‹• †‡†—…–‹‘ ‹• ‘—– ‘ˆ –Š‡ ˆ‘…—• ‘ˆ •‡…–‹‘ ͺͲǤ • ’‡” •‡…–‹‘ ͺͲȋʹȌ ‹ˆ –Š‡
‡’Ž‘›‡”…‘–”‹„—–‡•–‘™ƒ”†•–Š‡‘–‹ϐ‹‡†’‡•‹‘•…Š‡‡ǡ–Š‡†‡†—…–‹‘…ƒ„‡…Žƒ‹‡†„—–—’–‘ƒš‹—‘ˆ
ͳͲΨ‘ˆ–Š‡•ƒŽƒ”›‘ˆ‡’Ž‘›‡‡ȋͳͶΨ‹…ƒ•‡™Š‡”‡‡’Ž‘›‡”‹•‡–”ƒŽ
‘˜–Ǥ™Ǥ‡ǤˆǤ••‡••‡–‡ƒ”ʹͲǦʹͳȌǤŠ‹•
†‡†—…–‹‘‹•‘—–‘ˆ–Š‡ˆ‘…—•‘ˆ•‡…–‹‘ͺͲǤ
ƒŽƒ”›Š‡”‡‡ƒ•„ƒ•‹…•ƒŽƒ”›’Ž—•†‡ƒ”‡••ƒŽŽ‘™ƒ…‡ȋˆ‘”‹‰’ƒ”–Ȍ’Ž—•…‘‹••‹‘ƒ–ƒϐ‹š‡†’‡”…‡–ƒ‰‡‘ˆ
–—”‘˜‡”• ƒ…Š‹‡˜‡† „› –Š‡ ‡’Ž‘›‡‡Ǥ ‡ŽˆǦ‡’Ž‘›‡† ‹†‹˜‹†—ƒŽ• …ƒ ƒŽ•‘ …‘–”‹„—–‡ –‘  ƒ† ‹ •—…Š ƒ …ƒ•‡ǡ
ƒš‹—Ž‹‹–‘ˆ†‡†—…–‹‘‹•ʹͲΨ‘ˆŠ‹•‰”‘••–‘–ƒŽ‹…‘‡Ǥ›ƒ‘—–”‡…‡‹˜‡†ˆ”‘’‡•‹‘ˆ—†ǡ•ŠƒŽŽ„‡
–ƒšƒ„Ž‡ƒ•‹…‘‡‘ˆ–Š‡”‡…‹’‹‡–ȋƒ••‡••‡‡‘”Š‹•‘‹‡‡Ȍ‹–Š‡›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–‹•”‡…‡‹˜‡†Ǥ
 346 Lesson 6 Ȉ EP-TL

Limit on Deductions under sections 80C, 80CCC and 80CCD [Section 80CCE]
Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ†‡†—…–‹‘•—†‡”‡…–‹‘•ͺͲǡͺͲƒ†ͺͲȋͳȌ•ŠƒŽŽ‘–‹ƒ›…ƒ•‡ǡ‡š…‡‡†•Ǥ
ͳǡͷͲǡͲͲͲǤ • ’‡” •‡…–‹‘ ͺͲ ȋͳȌǡ ƒ ƒ††‹–‹‘ƒŽ †‡†—…–‹‘ ‘ˆ ƒš‹— •Ǥ ͷͲǡͲͲͲ …ƒ ƒŽ•‘ „‡ ƒ˜ƒ‹Ž‡†Ǥ Š‹•
†‡†—…–‹‘‹•‘—–‘ˆ–Š‡ˆ‘…—•‘ˆ•‡…–‹‘ͺͲǤ

Deduction in respect of Medical Insurance Premium [Section 80D]

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›–‘™ƒ”†•‡†‹…ƒŽ‹•—”ƒ…‡’”‡‹—
ƒ† ’”‡˜‡–‹˜‡ Š‡ƒŽ–Š …Š‡… —’ ‘” …‘–”‹„—–‹‘ –‘ ‡–”ƒŽ
‘˜‡”‡– ‡ƒŽ–Š …Š‡‡ ȋ
Ȍ ‘” ƒ› •…Š‡‡
‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘–Š‡Š‡ƒŽ–Š‘ˆ–Š‡ƒ••‡••‡‡ǡŠ‹•ˆƒ‹Ž›ǡ’ƒ”‡–•‘”‡„‡”•‘ˆ–Š‡ Ǥ
Š‡”‡–Š‡ƒ••‡••‡‡‹•ƒ‹†‹˜‹†—ƒŽǡ–Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ȋƒȌ –Š‡™Š‘Ž‡‘ˆ–Š‡ƒ‘—–’ƒ‹†–‘‡ˆˆ‡…–‘”–‘‡‡’‹ˆ‘”…‡ƒ‹•—”ƒ…‡‘–Š‡Š‡ƒŽ–Š‘ˆ–Š‡ƒ••‡••‡‡‘”Š‹•
ˆƒ‹Ž›‘”Dzƒ›…‘–”‹„—–‹‘ƒ†‡–‘–Š‡‡–”ƒŽ
‘˜‡”‡–‡ƒŽ–Š…Š‡‡dz‘”•—…Š‘–Š‡”•…Š‡‡ƒ•ƒ›
„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆ‘”ƒ›’ƒ›‡–ƒ†‡‘ƒ……‘—–‘ˆ’”‡˜‡–‹˜‡Š‡ƒŽ–Š
…Š‡…Ǧ—’‘ˆ–Š‡ƒ••‡••‡‡‘”Š‹•ˆƒ‹Ž›ƒ†–Š‡•—†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤʹͷǡͲͲͲǢƒ†
ȋ„Ȍ –Š‡ ™Š‘Ž‡ ‘ˆ –Š‡ ƒ‘—– ’ƒ‹† –‘ ‡ˆˆ‡…– ‘”–‘ ‡‡’ ‹ ˆ‘”…‡ ƒ ‹•—”ƒ…‡ ‘ –Š‡ Š‡ƒŽ–Š ‘ˆ –Š‡ ’ƒ”‡– ‘”
’ƒ”‡–•‘ˆ–Š‡ƒ••‡••‡‡‘”ƒ›’ƒ›‡–ƒ†‡‘ƒ……‘—–‘ˆ’”‡˜‡–‹˜‡Š‡ƒŽ–Š…Š‡…Ǧ—’‘ˆ–Š‡ƒ••‡••‡‡‘”
Š‹•ˆƒ‹Ž›ƒ•†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤʹͷǡͲͲͲǤ
ȋ…Ȍ –Š‡™Š‘Ž‡‘ˆ–Š‡ƒ‘—–’ƒ‹†‘ƒ……‘—–‘ˆ‡†‹…ƒŽ‡š’‡†‹–—”‡‹…—””‡†‘–Š‡Š‡ƒŽ–Š‘ˆ–Š‡ƒ••‡••‡‡‘”
ƒ›‡„‡”‘ˆŠ‹•ˆƒ‹Ž›ƒ•†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤͷͲǡͲͲͲǤ
ȋ†Ȍ –Š‡™Š‘Ž‡‘ˆ–Š‡ƒ‘—–’ƒ‹†‘ƒ……‘—–‘ˆ‡†‹…ƒŽ‡š’‡†‹–—”‡‹…—””‡†‘–Š‡Š‡ƒŽ–Š‘ˆƒ›’ƒ”‡–‘ˆ
–Š‡ƒ••‡••‡ǡƒ•†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤͷͲǡͲͲͲǤ
 ”‘˜‹†‡†–Šƒ–ƒ‘—–”‡ˆ‡””‡†‹ȋ…Ȍƒ†ȋ†Ȍ‹•’ƒ‹†‹”‡•’‡…–‘ˆƒ•‡‹‘”…‹–‹œ‡ƒ†‘ƒ‘—–Šƒ•„‡‡
’ƒ‹†–‘‡ˆˆ‡…–‘”–‘‡‡’‹ˆ‘”…‡ƒ•—”ƒ…‡‘–Š‡Š‡ƒŽ–Š‘ˆ•—…Š’‡”•‘Ǣ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–ƒ‰‰”‡‰ƒ–‡‘ˆƒ‘—–•’‡…‹ϐ‹‡†—†‡”ȋƒȌƒ†ȋ…Ȍ‘”ƒ‰‰”‡‰ƒ–‡‘ˆ•—•’‡…‹ϐ‹‡†—†‡”
ȋ„Ȍƒ†ȋ†Ȍ•ŠƒŽŽ‘–‡š…‡‡†•ǤͷͲǡͲͲͲǤ
Explanation : family means the spouse and dependent children of the assessee.
ƒ›‡–•ŠƒŽŽ„‡ƒ†‡„›ƒ›‘†‡ǡ‹…Ž—†‹‰…ƒ•Šǡ‹”‡•’‡…–‘ˆƒ›•—’ƒ‹†‘ƒ……‘—–‘ˆ’”‡˜‡–‹˜‡Š‡ƒŽ–Š
…Š‡…Ǧ—’ƒ†„›ƒ›‘†‡‘–Š‡”–Šƒ…ƒ•Š‹ƒŽŽ…ƒ•‡•‘–Š‡”–Šƒ’”‡˜‡–‹˜‡Š‡ƒŽ–Š…Š‡…—’Ǥ

Š‡”‡–Š‡ƒ••‡••‡‡‹•ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ–Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡ•ŠƒŽŽ„‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰
ƒ‡Ž›ǣ
ȋƒȌ ™Š‘Ž‡‘ˆ–Š‡ƒ‘—–’ƒ‹†–‘‡ˆˆ‡…–‘”–‘‡‡’‹ˆ‘”…‡ƒ‹•—”ƒ…‡‘–Š‡Š‡ƒŽ–Š‘ˆƒ›‡„‡”‘ˆ–Šƒ–
‹†——†‹˜‹†‡† ƒ‹Ž›ƒ•†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤʹͷǡͲͲͲ
ȋ„Ȍ ™Š‘Ž‡‘ˆ–Š‡ƒ‘—–’ƒ‹†‘ƒ……‘—–‘ˆ‡†‹…ƒŽ‡š’‡†‹–—”‡‹…—””‡†‘–Š‡Š‡ƒŽ–Š‘ˆƒ›•‡‹‘”…‹–‹œ‡
‡„‡”‘ˆ–Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›ƒ•†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤͷͲǡͲͲͲƒ†‘ƒ‘—–Šƒ•
„‡‡’ƒ‹†–‘‡ˆˆ‡…–‘”–‘‡‡’‹ˆ‘”…‡ƒ†‹•—”ƒ…‡‘–Š‡Š‡ƒ–Š‘ˆ•—…Šƒ’‡”•‘ǣ
”‘˜‹†‡†–Šƒ––Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡•—•’‡…‹ϐ‹‡†—†‡”–Š‡…Žƒ—•‡ȋƒȌƒ†…Žƒ—•‡ȋ„Ȍ•ŠƒŽŽ‘–‡š…‡‡†•ǤͷͲǡͲͲͲ

Explanation: For the purposes of this section,

ͳǤ ‡‹‘”…‹–‹œ‡‡ƒ•ƒ‹†‹˜‹†—ƒŽ”‡•‹†‡–‹†‹ƒ™Š‘‹•‘ˆ–Š‡ƒ‰‡‘ˆ•‹š–››‡ƒ”•‘”‘”‡ƒ–ƒ›–‹‡
†—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
ʹǤ Š‡”‡–Š‡ƒ‘—–‘ˆŠ‡ƒŽ–Š‹•—”ƒ…‡’”‡‹—‹ƒ„‘˜‡…ƒ•‡•Šƒ•„‡‡’ƒ‹†‹Ž—’•—ˆ‘”‘”‡–Šƒ
‘‡’”‡˜‹‘—•›‡ƒ”–Š‡†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”‡ƒ…Š”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ‘—–‘ˆ†‡†—…–‹‘
ˆ‘”‡ƒ…Š’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†„›†‹˜‹†‹‰Ž—’•—’”‡‹—ƒ‘—–„›—„‡”‘ˆ”‡Ž‡˜ƒ–
’”‡˜‹‘—•›‡ƒ”•Ǥ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 347

Illustration 1:

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ‹†‹˜‹†—ƒŽ‹”‡•’‡…–‘ˆ’”‡‹—’ƒ‹†–‘™ƒ”†•‡†‹…ƒŽ‹•—”ƒ…‡‘ˆŠ‹•
ˆƒ‹Ž›Ǥ ‘”–Š‡’—”’‘•‡‘ˆ‡…–‹‘ͺͲ ƒ‹Ž›‡ƒ•ǣ
ƒȌ Š‡•’‘—•‡
„Ȍ Š‡•’‘—•‡ƒ††‡’‡†‡–…Š‹Ž†”‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ
…Ȍ Š‡•’‘—•‡ƒ†ƒ›…Š‹Ž†”‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ
†Ȍ Š‡•’‘—•‡ǡ…Š‹Ž†”‡ƒ†’ƒ”‡–•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
Solution:ȋ„ȌŠ‡•’‘—•‡ƒ††‡’‡†‡–…Š‹Ž†”‡‘ˆ–Š‡ƒ••‡••‡‡Ǥ

Illustration 2:

••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹǡƒ‹†‹˜‹†—ƒŽ–ƒš’ƒ›‡”…ƒ…Žƒ‹†‡†—…–‹‘‘ˆ—’–‘̴̴̴̴̴̴̴—†‡”‡…–‹‘ͺͲ‘ˆ–Š‡
…‘‡ƒš…–ǡͳͻ͸ͳǡ‹ˆŠ‡‘”Š‹•ˆƒ‹Ž›‡„‡”•ƒ†Š‹•’ƒ”‡–•ƒ”‡͸Ͳ›‡ƒ”•‘”ƒ„‘˜‡ǣ
ƒȌ •ǤͷͲǡͲͲͲ
„Ȍ •Ǥ͸ͲǡͲͲͲ
…Ȍ •ǤͳǡͲͲǡͲͲͲ
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
Solution: (c) Rs. 1,00,000

Deduction in respect of maintenance including medical treatment of a dependent who is a person

with disability [Section 80DD]
 348 Lesson 6 Ȉ EP-TL

Š‡†‡†—…–‹‘—†‡”…Žƒ—•‡ȋ„Ȍ•ŠƒŽŽ„‡ƒŽŽ‘™‡†‘Ž›‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡ˆ—Žϐ‹ŽŽ‡†ǡƒ‡Ž›ǣǦ
ȋƒȌ –Š‡•…Š‡‡’”‘˜‹†‡•ˆ‘”’ƒ›‡–‘ˆƒ—‹–›‘”Ž—’•—ƒ‘—–ˆ‘”–Š‡„‡‡ϐ‹–‘ˆƒ†‡’‡†‡–ǡ„‡‹‰ƒ
’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›ǡ‹–Š‡‡˜‡–‘ˆ–Š‡†‡ƒ–Š‘ˆ–Š‡‹†‹˜‹†—ƒŽ‘”–Š‡‡„‡”‘ˆ–Š‡‹†——†‹˜‹†‡†
ˆƒ‹Ž›‹™Š‘•‡ƒ‡•—„•…”‹’–‹‘–‘–Š‡•…Š‡‡Šƒ•„‡‡ƒ†‡Ǣ
ȋ„Ȍ –Š‡ƒ••‡••‡‡‘‹ƒ–‡•‡‹–Š‡”–Š‡†‡’‡†‡–ǡ„‡‹‰ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›ǡ‘”ƒ›‘–Š‡”’‡”•‘‘”ƒ–”—•–
–‘”‡…‡‹˜‡–Š‡’ƒ›‡–‘Š‹•„‡ŠƒŽˆǡˆ‘”–Š‡„‡‡ϐ‹–‘ˆ–Š‡†‡’‡†‡–ǡ„‡‹‰ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›Ǥ
ˆ–Š‡†‡’‡†‡–ǡ„‡‹‰ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›ǡ’”‡†‡…‡ƒ•‡•–Š‡‹†‹˜‹†—ƒŽ‘”–Š‡‡„‡”‘ˆ–Š‡‹†——†‹˜‹†‡†
ˆƒ‹Ž›ǡƒƒ‘—–‡“—ƒŽ–‘–Š‡ƒ‘—–’ƒ‹†‘”†‡’‘•‹–‡†—†‡”Žƒ—•‡ȋ„Ȍ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡
ƒ••‡••‡‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Šƒ‘—–‹•”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡ƒ†•ŠƒŽŽƒ……‘”†‹‰Ž›„‡…Šƒ”‰‡ƒ„Ž‡
–‘–ƒšƒ•–Š‡‹…‘‡‘ˆ–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
Š‡ƒ••‡••‡‡ǡ…Žƒ‹‹‰ƒ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡ•ŠƒŽŽˆ—”‹•Šƒ…‘’›‘ˆ–Š‡…‡”–‹ϐ‹…ƒ–‡‹••—‡†„›–Š‡‡†‹…ƒŽ
ƒ—–Š‘”‹–›‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†ƒ‡”ǡƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻǡ‹”‡•’‡…–‘ˆ–Š‡
ƒ••‡••‡–›‡ƒ”ˆ‘”™Š‹…Š–Š‡†‡†—…–‹‘‹•…Žƒ‹‡†ǣ
For the purpose of this section
ȋƒȌ Dz†‡’‡†‡–dz‡ƒ•Ǧ
ȋ‹Ȍ ‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ–Š‡•’‘—•‡ǡ…Š‹Ž†”‡ǡ’ƒ”‡–•ǡ„”‘–Š‡”•ƒ†•‹•–‡”•‘ˆ–Š‡‹†‹˜‹†—ƒŽ‘”
ƒ›‘ˆ–Š‡Ǣ
ȋ‹‹Ȍ ‹–Š‡…ƒ•‡‘ˆƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡƒ‡„‡”‘ˆ–Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ†‡’‡†‡–™Š‘ŽŽ›
‘”ƒ‹Ž›‘•—…Š‹†‹˜‹†—ƒŽ‘”‹†——†‹˜‹†‡†ˆƒ‹Ž›ˆ‘”Š‹••—’’‘”–ƒ†ƒ‹–‡ƒ…‡ǡƒ†™Š‘
Šƒ•‘–…Žƒ‹‡†ƒ›†‡†—…–‹‘—†‡”‡…–‹‘ͺͲ‹…‘’—–‹‰Š‹•–‘–ƒŽ‹…‘‡ˆ‘”–Š‡ƒ••‡••‡–
›‡ƒ””‡Žƒ–‹‰–‘–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ
ȋ„Ȍ Dz†‹•ƒ„‹Ž‹–›dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋ‹Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡‡”•‘•™‹–Š‹•ƒ„‹Ž‹–‹‡•
ȋ“—ƒŽ’’‘”–—‹–‹‡•ǡ”‘–‡…–‹‘‘ˆ‹‰Š–•ƒ† —ŽŽƒ”–‹…‹’ƒ–‹‘Ȍ…–ǡͳͻͻͷȋͳ‘ˆͳͻͻ͸ȌǢ
‡†—…–‹‘‹”‡•’‡…–‘ˆ‡†‹…ƒŽ–”‡ƒ–‡–‘ˆ…‡”–ƒ‹•’‡…‹ϐ‹‡††‹•‡ƒ•‡‘”ƒ‹Ž‡–ȏ‡…–‹‘ͺͲȐ

‡…–‹‘ ͺͲ ’”‘˜‹†‡• †‡†—…–‹‘ –‘ ƒ ‹†‹˜‹†—ƒŽ ‘” ƒ ‹†— —†‹˜‹†‡† ˆƒ‹Ž›ǡ ™Š‘ ‹• ƒ ”‡•‹†‡– ‹ †‹ƒ ˆ‘”
ƒ‘—– ƒ…–—ƒŽŽ› ’ƒ‹† †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ”ǡ ˆ‘” –Š‡ ‡†‹…ƒŽ –”‡ƒ–‡– ‘ˆ •—…Š †‹•‡ƒ•‡ ‘” ƒ‹Ž‡– ƒ• ƒ› „‡
•’‡…‹ϐ‹‡†‹–Š‡”—Ž‡•ƒ†‡‹–Š‹•„‡ŠƒŽˆ„›–Š‡‘ƒ”†Ǧ
ȋƒȌ ˆ‘”Š‹•‡Žˆ‘”ƒ†‡’‡†‡–ǡ‹…ƒ•‡–Š‡ƒ••‡••‡‡‹•ƒ‹†‹˜‹†—ƒŽǢ‘”
ȋ„Ȍ ˆ‘”ƒ›‡„‡”‘ˆƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ‹…ƒ•‡–Š‡ƒ••‡••‡‡‹•ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ
•—„Œ‡…––‘ƒƒš‹—‘ˆ•ǤͶͲǡͲͲͲȋ‹…ƒ•‡‘ˆ•‡‹‘”…‹–‹œ‡•ǤͳǡͲͲǡͲͲͲȌ
‡†—…–‹‘‹•ƒŽŽ‘™‡†‘Ž›™Š‡ƒ…‡”–‹ϔ‹…ƒ–‡‹ ‘”‘ǤͷͶǦȋ‹••—‡†„›‡—”‘Ž‘‰‹•–ǡ‘…‘Ž‘‰‹•–ǡ—”‘Ž‘‰‹•–ǡŠ‡ƒ–‘Ž‘‰‹•–ǡ
‹—‘Ž‘‰‹•–‘”ƒ›•—…Š•’‡…‹ƒŽ‹•–ƒ•ƒ›„‡•’‡…‹ϔ‹‡†™‘”‹‰‹ƒ
‘˜‡”‡–‘•’‹–ƒŽȌ‹•ˆ—”‹•Š‡†Ǥ‘…‡’–‘ˆ
˜‡”›•—’‡”•‡‹‘”…‹–‹œ‡ƒ„‘Ž‹•Š‡†„› ‹ƒ…‡…–ǡ͸Ͷͷ;Ǥ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡”‡†—…‡†„›–Š‡ƒ‘—–”‡…‡‹˜‡†ǡ‹ˆƒ›ǡ—†‡”ƒ
‹•—”ƒ…‡ˆ”‘ƒ‹•—”‡”ǡ‘””‡‹„—”•‡†„›ƒ‡’Ž‘›‡”ǡˆ‘”–Š‡‡†‹…ƒŽ–”‡ƒ–‡–‘ˆ–Š‡’‡”•‘”‡ˆ‡””‡†–‘‹
Žƒ—•‡ȋƒȌ‘”Žƒ—•‡ȋ„ȌǤ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡDz†‡’‡†‡–dz‡ƒ•Ȃ
ȋƒȌ ‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ–Š‡•’‘—•‡ǡ…Š‹Ž†”‡ǡ’ƒ”‡–•ǡ„”‘–Š‡”•ƒ†•‹•–‡”•‘ˆ–Š‡‹†‹˜‹†—ƒŽǡ†‡’‡†ƒ–
™Š‘ŽŽ›‘”ƒ‹Ž›‘•—…Š‹†‹˜‹†—ƒŽˆ‘”•—’’‘”–ƒ†ƒ‹–‡ƒ…‡Ǣ
ȋ„Ȍ ‹–Š‡…ƒ•‡‘ˆƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡƒ›‡„‡”‘ˆ–Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ†‡’‡†ƒ–™Š‘ŽŽ›‘”
ƒ‹Ž›‘‹†——†‹˜‹†‡†ˆƒ‹Ž›ˆ‘”•—’’‘”–ƒ†ƒ‹–‡ƒ…‡Ǥ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 349

Illustration 3:

ƒ”‡•‹†‡–‹†‹˜‹†—ƒŽ‹…—”••Ǥ͵ͲǡͲͲͲ‡š’‡†‹–—”‡‘Š‹•‘™–”‡ƒ–‡–‘ˆƒ•’‡…‹ϐ‹‡††‹•‡ƒ•‡ƒ†•ǤͳͷǡͲͲͲ
‘‡†‹…ƒŽ–”‡ƒ–‡–‘ˆŠ‹•™‹ˆ‡‹ƒ
‘˜‡”‡–Š‘•’‹–ƒŽǤ•ǤʹǡͲͲͲ‹•”‡‹„—”•‡†„›‹•—”ƒ…‡…‘’ƒ›ˆ‘”
Š‹•™‹ˆ‡ƒ†•ǤͷǡͲͲͲƒ”‡”‡‹„—”•‡†„›Š‹•‡’Ž‘›‡”ˆ‘”Š‹Ǥ‘’—–‡–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘—†‡”•‡…–‹‘
ͺͲǫ

Solution:

Š‡ƒ‘—–‘ˆ†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ•ŠƒŽŽ„‡Ž‘™‡”‘ˆͳƒ†ʹ„‡Ž‘™Ž‡••ƒ‘—–”‡…‘˜‡”‡†ˆ”‘
‹•—”ƒ…‡…‘’ƒ›ƒ†‡’Ž‘›‡”Ǥ
ͳǤ ͵ͲǡͲͲͲΪͳͷǡͲͲͲαͶͷǡͲͲͲ
ʹǤ ͶͲǡͲͲͲ
 •ǤͶͲǡͲͲͲŽ‡••ȋʹǡͲͲͲΪͷǡͲͲͲȌα͵͵ǡͲͲͲ
‡…‡ǡ•Ǥ͵͵ǡͲͲͲ‹•–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲǤ

Illustration 4:

ˆǡƒ‹†‹˜‹†—ƒŽ‹…—”••ǤͳǡͺͲǡͲͲͲ‡š’‡†‹–—”‡‘‡†‹…ƒŽ–”‡ƒ–‡–‘ˆƒ•’‡…‹ϐ‹‡††‹•‡ƒ•‡ˆ‘”Š‹•‘–Š‡”
ȋ͸ͷ›‡ƒ”•Ȍ‹ƒŠ‘•’‹–ƒŽ”‡…‘‰‹•‡†„›Š‹‡ˆ‘‹••‹‘‡”ƒ†•ǤͺǡͲͲͲƒ”‡”‡‹„—”•‡†„›‹•—”ƒ…‡…‘’ƒ›ǡ
™Šƒ–™‹ŽŽ„‡–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘ƒ˜ƒ‹Žƒ„Ž‡–‘Š‹—†‡”•‡…–‹‘ͺͲǫ
ȋƒȌ •ǤͻʹǡͲͲͲ
ȋ„Ȍ •Ǥ͹ʹǡͲͲͲ
ȋ…Ȍ •ǤͳǡͺͲǡͲͲͲ
ȋ†Ȍ ›ƒ‘—–
Solution: (a) Rs. 92,000

Illustration 5:

ˆǡƒ‹†‹˜‹†—ƒŽ‹…—”••ǤͳǡͺͲǡͲͲͲ‡š’‡†‹–—”‡‘‡†‹…ƒŽ–”‡ƒ–‡–‘ˆƒ•’‡…‹ϐ‹‡††‹•‡ƒ•‡ˆ‘”Š‹•‰”ƒ†
‘–Š‡”ȋͺͷ›‡ƒ”•Ȍ‹ƒŠ‘•’‹–ƒŽ”‡…‘‰‹•‡†„›Š‹‡ˆ‘‹••‹‘‡”ƒ†•ǤͺǡͲͲͲƒ”‡”‡‹„—”•‡†„›‹•—”ƒ…‡
…‘’ƒ›ǡ™Šƒ–™‹ŽŽ„‡–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘ƒ˜ƒ‹Žƒ„Ž‡–‘Š‹—†‡”•‡…–‹‘ͺͲǫ
ȋƒȌ •Ǥ͸ͲǡͲͲͲ
ȋ„Ȍ •ǤͳǡͺͲǡͲͲͲ
ȋ…Ȍ •ǤͻʹǡͲͲͲ
ȋ†Ȍ 
Solution: (c) Rs. 92,000
 350 Lesson 6 Ȉ EP-TL

Illustration 6:

ƒš‹—ƒ‘—–‘ˆ†‡†—…–‹‘‹•ƒŽŽ‘™‡†—’–‘̴̴̴̴̴̴̴̴̴—Ȁ•ͺͲ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǡ–‘ƒ‹†‹˜‹†—ƒŽ
‘” ȋ‰‡„‡Ž‘™͸Ͳ›‡ƒ”•Ȍ–‘™ƒ”†•–Š‡’ƒ›‡–‘ˆ‡†‹…ƒŽ–”‡ƒ–‡–ˆ‘”…”‹–‹…ƒŽ‹ŽŽ‡••ˆ‘”Š‹•‡Žˆ‘”ˆƒ‹Ž›
‡„‡”•ǣ
ƒȌ •ǤͳǡͲͲǡͲͲͲ
„Ȍ •Ǥ͸ͲǡͲͲͲ
…Ȍ •ǤͶͲǡͲͲͲ
†Ȍ ‹Ž
Solution: (c) Rs. 40,000

Deduction in respect of repayment of loan taken for Higher Education [Section 80E]
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ‹†‹˜‹†—ƒŽˆ‘”ƒ‘—–ƒ…–—ƒŽŽ›’ƒ‹††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‘—–‘ˆŠ‹•‹…‘‡
…Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš „› ™ƒ› ‘ˆ ƒ ‹–‡”‡•– ‘ Ž‘ƒǡ –ƒ‡ „› Š‹ ˆ”‘ ƒ› ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘ ‘” ƒ› ƒ’’”‘˜‡†
…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘ˆ‘”–Š‡’—”’‘•‡‘ˆ’—”•—‹‰Š‹‰Š‡”‡†—…ƒ–‹‘‘ˆ•‡Žˆ‘”ƒ›‘ˆ–Š‡”‡Žƒ–‹˜‡ȋ‹Ǥ‡Ǥ•’‘—•‡ǡ…Š‹Ž†”‡
‘ˆ–Š‡ƒ••‡••‡‡‘”•–—†‡–ˆ‘”™Š‘–Š‡‹†‹˜‹†—ƒŽ‹•–Š‡Ž‡‰ƒŽ‰—ƒ”†‹ƒȌǤŠ‡†‡†—…–‹‘™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‹…‘’—–‹‰
–Š‡–‘–ƒŽ‹…‘‡‹”‡•’‡…–‘ˆ‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”ƒ†–Š‡•‡˜‡ƒ••‡••‡–›‡ƒ”•‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰–Š‡
‹‹–‹ƒŽ ƒ••‡••‡– ›‡ƒ” ‘” —–‹Ž –Š‡ ‹–‡”‡•– –Š‡”‡‘ ‹• ’ƒ‹† „› •—…Š ‹†‹˜‹†—ƒŽ ‹ ˆ—ŽŽǡ ™Š‹…Š‡˜‡” ‹• ‡ƒ”Ž‹‡”Ǥ Š‡
‡š’”‡••‹‘Dz‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”dz‡ƒ•–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‹™Š‹…Š–Š‡ƒ••‡••‡‡
•–ƒ”–•’ƒ›‹‰–Š‡‹–‡”‡•–‘–Š‡Ž‘ƒǤ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ–Š‡‡š’”‡••‹‘DzŠ‹‰Š‡”‡†—…ƒ–‹‘dz‹•„‡‹‰†‡ϐ‹‡†–‘‡ƒƒ›…‘—”•‡‘ˆ•–—†›
’—”•—‡† ƒˆ–‡” ’ƒ••‹‰ –Š‡ ‡‹‘” ‡…‘†ƒ”› šƒ‹ƒ–‹‘ ‘” ‹–• ‡“—‹˜ƒŽ‡– ˆ”‘ ƒ› •…Š‘‘Žǡ „‘ƒ”† ‘” —‹˜‡”•‹–›
”‡…‘‰‹•‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”–ƒ–‡
‘˜‡”‡–‘”Ž‘…ƒŽƒ—–Š‘”‹–›‘”„›ƒ›‘–Š‡”ƒ—–Š‘”‹–›ƒ—–Š‘”‹•‡†
„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”–ƒ–‡
‘˜‡”‡–‘”Ž‘…ƒŽƒ—–Š‘”‹–›–‘†‘•‘Ǥ‹‰Š‡”‡†—…ƒ–‹‘•Š‘—Ž†„‡‹†‹ƒ‘Ž›Ǥ
Š‡‡š’”‡••‹‘Dzϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘dz‹•„‡‹‰†‡ϐ‹‡†–‘‡ƒƒ„ƒ‹‰…‘’ƒ›–‘™Š‹…Š–Š‡Dzƒ‹‰‡‰—Žƒ–‹‘
…–ǡ ͳͻͶͻ ƒ’’Ž‹‡• ȋ‹…Ž—†‹‰ ƒ› „ƒ ‘” „ƒ‹‰ ‹•–‹–—–‹‘ ”‡ˆ‡””‡† –‘ ‹ ‡…–‹‘ ͷͳ ‘ˆ –Š‡ …–Ȍ ‘” ƒ› ‘–Š‡”
ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘™Š‹…Š–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ•’‡…‹ˆ›‹–Š‹•„‡ŠƒŽˆǤ
Š‡‡š’”‡••‹‘Dzƒ’’”‘˜‡†…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘dz‹•„‡‹‰†‡ϐ‹‡†–‘‡ƒƒ‹•–‹–—–‹‘•’‡…‹ϐ‹‡†‹ǡ‘”ƒ•–Š‡…ƒ•‡
ƒ›„‡ǡƒ‹•–‹–—–‹‘‡•–ƒ„Ž‹•Š‡†ˆ‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”‡…–‹‘
ͳͲȋʹ͵Ȍ‘”ƒ‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹‡…–‹‘ͺͲ
ȋʹȌȋƒȌǤ

Illustration 7:

Šƒ– ‹• –Š‡ —’’‡” Ž‹‹– ‘ˆ †‡†—…–‹‘ ȋ‹…Ž—†‹‰ ‹–‡”‡•–Ȍ ‘ Ž‘ƒǡ –ƒ‡ „› ƒ ‹†‹˜‹†—ƒŽ ˆ”‘ ƒ› ϐ‹ƒ…‹ƒŽ
‹•–‹–—–‹‘‘”ƒ›ƒ’’”‘˜‡†…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘ˆ‘”–Š‡’—”’‘•‡‘ˆ’—”•—‹‰Š‹•ȀŠ‡”Š‹‰Š‡”‡†—…ƒ–‹‘ǫ
ȋƒȌ •Ǥ ͵ͲǡͲͲͲ
ȋ„Ȍ •Ǥ ͶͲǡͲͲͲ
ȋ…Ȍ •Ǥ ͷͲǡͲͲͲ
ȋ†Ȍ ›‘—–
Solution:(d) Any Amount
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 351

Deduction in respect of interest on loan taken for Residential House Property [Section 80EE]
‡…–‹‘ ͺͲ ’”‘˜‹†‡• †‡†—…–‹‘ –‘ ƒ ‹†‹˜‹†—ƒŽ ˆ‘” ‹–‡”‡•– ’ƒ›ƒ„Ž‡ ‘ Ž‘ƒ –ƒ‡ „› Š‹ ˆ”‘ ƒ› ϐ‹ƒ…‹ƒŽ
‹•–‹–—–‹‘ˆ‘”–Š‡’—”’‘•‡‘ˆƒ…“—‹•‹–‹‘‘ˆƒ”‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘ͳ•–
†ƒ›‘ˆ’”‹ŽǡʹͲͳ͹ƒ†•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”ǡ•—„Œ‡…––‘ƒš‹—‘ˆ•ǤͷͲǡͲͲͲǤ

Š‡”‡ƒ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•ƒŽŽ‘™‡†ˆ‘”ƒ›‹–‡”‡•–ǡ†‡†—…–‹‘•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ•—…Š
‹–‡”‡•–—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‡…–ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”ƒ••‡••‡–›‡ƒ”ǤŠ‡”‡ˆ‘”‡ǡ–Š‹•†‡†—…–‹‘
‹• ‘–Š‡” –Šƒ –Š‡ †‡†—…–‹‘ —Ȁ• ʹͶȋ„Ȍ —†‡” –Š‡ Š‡ƒ† Dz…‘‡ ˆ”‘ Š‘—•‡ ’”‘’‡”–›dzǤ ˆ ‹ …ƒ•‡ǡ –Š‡ ƒ‘—– ‘ˆ
‹–‡”‡•–‡š…‡‡†••ǤͷͲǡͲͲͲ–Š‡–Š‡‹†‹˜‹†—ƒŽ…ƒ…Žƒ‹–Š‡„ƒŽƒ…‡†‡†—…–‹‘—Ȁ•ʹͶȋ„Ȍǡ‹ˆ”‡Ž‡˜ƒ–…‘†‹–‹‘•ƒ”‡
•ƒ–‹•ϐ‹‡†Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ
ƒȌ Dzϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘dz‡ƒ•ƒ„ƒ‹‰…‘’ƒ›–‘™Š‹…Š–Š‡ƒ‹‰‡‰—Žƒ–‹‘…–ǡͳͻͶͻȋͳͲ‘ˆͳͻͶͻȌ
ƒ’’Ž‹‡•‹…Ž—†‹‰ƒ›„ƒ‘”„ƒ‹‰‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͷͳ‘ˆ–Šƒ–…–‘”ƒŠ‘—•‹‰ϐ‹ƒ…‡
…‘’ƒ›Ǣ
„Ȍ DzŠ‘—•‹‰ϐ‹ƒ…‡…‘’ƒ›dz‡ƒ•ƒ’—„Ž‹……‘’ƒ›ˆ‘”‡†‘””‡‰‹•–‡”‡†‹†‹ƒ™‹–Š–Š‡ƒ‹‘„Œ‡…–‘ˆ
…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ’”‘˜‹†‹‰Ž‘‰Ǧ–‡”ϐ‹ƒ…‡ˆ‘”…‘•–”—…–‹‘‘”’—”…Šƒ•‡‘ˆŠ‘—•‡•‹†‹ƒˆ‘”
”‡•‹†‡–‹ƒŽ’—”’‘•‡•Ǥ

Illustration 8:

‹†‘—––Š‡ƒ‘—–‘ˆ†‡†—…–‹‘—†‡”‡…–‹‘ͺͲˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵™Š‡”‡ƒ‹†‹˜‹†—ƒŽ
Šƒ• ƒ’’Ž‹‡† ˆ‘” ƒ Ž‘ƒ ˆ‘” ƒ…“—‹•‹–‹‘ ‘ˆ Š‘—•‡ ’”‘’‡”–› ‘ ƒ”…Š ͳͷǡ ʹͲʹͳ ˆ‘” •Ǥ ͷͲ ŽƒŠ ƒ† –Š‡ Ž‘ƒ ‹•
•ƒ…–‹‘‡†‘ƒ›ͳͲǡʹͲʹͳˆ‘”•ǤͶͲŽƒŠ‘Ž›Ǥ‡†‘‡•‘–‘™ƒ›‘–Š‡””‡•‹†‡–‹ƒŽŠ‘—•‡’”‘’‡”–›ƒ†’ƒ›•
‹–‡”‡•–‘ˆ•Ǥ͹ͲǡͲͲͲˆ‘”’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤ
ȋƒȌ•Ǥ͹ͲǡͲͲͲ
ȋ„Ȍ•ǤͷͲǡͲͲͲ
ȋ…Ȍ
ȋ†Ȍ•ǤͶͲǡͲͲͲ
Solution: (c) Nil
 352 Lesson 6 Ȉ EP-TL

Illustration 9:

–Š‡ƒ„‘˜‡…ƒ•‡…ƒŠ‡…Žƒ‹ƒ›†‡†—…–‹‘—†‡”•‡…–‹‘ʹͶǫŠƒ–ƒ‘—–ǫ
ȋƒȌ ‡•ȋ•ǤͷͲǡͲͲͲȌ
ȋ„Ȍ ‘
ȋ…Ȍ ‡•ȋ•ǤʹͲǡͲͲͲȌ
ȋ†Ȍ ‡•ȋ•Ǥ͹ͲǡͲͲͲ‹ˆˆ—Žϐ‹ŽŽ‹‰…‘†‹‹–‘•Ȍ
‘Ž—–‹‘ǣȋ†Ȍ‡•ȋ•Ǥ͹ͲǡͲͲͲ‹ˆˆ—Žϐ‹ŽŽ‹‰…‘†‹‹–‘•Ȍ

Tax incentives for affordable housing [Section 80EEA]

‡™ ‡…–‹‘ ͺͲ ‘ˆ –Š‡ …‘‡ ƒš …–ǡ ͳͻ͸ͳ Šƒ• „‡‡ ‹–”‘†—…‡† ˜‹†‡ ‹ƒ…‡ …–ǡ ʹͲͳͻ ƒ• ’‡” ™Š‹…Š ƒ
ƒ††‹–‹‘ƒŽ –ƒš †‡†—…–‹‘ —’ –‘ ͳǤͷ ƒŠ ‹• ƒ˜ƒ‹Žƒ„Ž‡ ˆ‘” ‹–‡”‡•– ’ƒ‹† ‘ Ž‘ƒ• –ƒ‡ —’ –‘ ͵ͳ•– ƒ”…Š ʹͲʹʹ
[Amendment vide Finance Act, 2021]Ǥ–‹•ƒƒ††‹–‹‘ƒŽ„‡‡ϐ‹–‘–Š‡–‘’‘ˆ•ǤʹƒŠ„‡‡ϐ‹–‡š–‡†‡†„›
•‡…–‹‘ʹͶǤŠ‡ƒš‹—–ƒš†‡†—…–‹‘‘‹–‡”‡•–ƒ‘—–’ƒ‹†ˆ‘”Š‘‡Ž‘ƒ™‹ŽŽ„‡͵ǤͷƒŠ•ǡ‹Ǥ‡ǤǡʹƒŠ—†‡”
•‡…–‹‘ʹͶƒ†ͳǤͷƒŠ—†‡”•‡…–‹‘ͺͲǤŠ‡†‡†—…–‹‘™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž‘ƒ•–ƒ‡—’–‘͵ͳ•–ƒ”…ŠʹͲʹʹ
[Amendment vide Finance Act, 2021]ǤŠ‡„‡‡ϐ‹–™‹ŽŽ„‡‰‹˜‡‘Ž›‘–Š‡‹–‡”‡•–…‘’‘‡–‘ˆ–Š‡Š‘‡Ž‘ƒǤ
Eligibility conditions for claiming deduction
Š‹•„‡‡ϐ‹–™‹ŽŽ„‡‡š–‡†‡†‘Ž›–‘–Š‡ϐ‹”•––‹‡Š‘‡‘™‡”ǡ‹Ǥ‡Ǥǡ–Š‡ƒ••‡••‡‡•Š‘—Ž†‘–„‡‘™‡”‘ˆƒ›‘–Š‡”
Š‘—•‡ƒ––Š‡–‹‡‘ˆ•ƒ…–‹‘–‘ƒ˜ƒ‹Ž–Š‹•„‡‡ϐ‹–Ǥ
Ȉ Š‡•–ƒ’†—–›˜ƒŽ—‡‘ˆƒŠ‘‡•Š‘—Ž†„‡ͶͷƒŠ•‘”Ž‡••Ǥ
Ȉ Š‡†‡†—…–‹‘—†‡”–Š‹••…Š‡‡‹•ƒ˜ƒ‹Žƒ„Ž‡‘Ž›–‘–Š‡‹†‹˜‹†—ƒŽ•Ǥ ǡ…‘’ƒ›‘”ƒ›‘–Š‡”‹†‘ˆ
–ƒš’ƒ›‡”…ƒ‘–…Žƒ‹„‡‡ϐ‹–—†‡”–Š‹••‡…–‹‘Ǥ
Ȉ ‘”†‡”–‘…Žƒ‹–Š‹•„‡‡ϐ‹–ǡ–Š‡’”‘’‡”–›•Š‘—Ž†„‡•‡ŽˆǦ‘……—’‹‡†ƒ†ƒˆˆ‘”†ƒ„Ž‡Ǥ
Ȉ ‘…Žƒ‹–Š‹•„‡‡ϐ‹–ǡ–Š‡‹†‹˜‹†—ƒŽ—•–Šƒ˜‡–ƒ‡–Š‡Ž‘ƒˆ”‘–Š‡ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘‘”„ƒǤŠ‡
Ž‘ƒ•ƒ…–‹‘•Š‘—Ž†„‡„‡–™‡‡ͳ•–’”‹ŽǡʹͲͳͻ–‘͵ͳ•–ƒ”…ŠǡʹͲʹʹ[Amendment vide Finance Act,
2021].
Ȉ Š‹•–ƒš†‡†—…–‹‘…ƒ„‡…Žƒ‹‡†ˆ‘”„›‹†‹˜‹†—ƒŽƒ•™‡ŽŽƒ•Œ‘‹–Š‘‡Ž‘ƒ„‘””‘™‡”ǤŠ‡Œ‘‹–Š‘‡
Ž‘ƒ„‘””‘™‡”…ƒ‹†‹˜‹†—ƒŽŽ›…Žƒ‹–Š‹•„‡‡ϐ‹–Ǥ
Ȉ Š‡ƒ„‘˜‡„‡‡ϐ‹–‹•‘–ƒ’’Ž‹…ƒ„Ž‡ˆ‘”–Š‡…‘‡”…‹ƒŽ’”‘’‡”–‹‡•Ǥ
ƒš‹—ƒš‡†—…–‹‘„‡‡ϐ‹–‘‘‡‘ƒ–‡”‡•–αʹƒŠȋ‡…–‹‘ʹͶȌΪͳǤͷƒŠȋ‡…–‹‘ͺͲȌ
Example:ƒ‡•Š™‘”•‹—‡‹‘’ƒ›Ǥ‡Ž‹˜‡•‹—‡‹ƒ”‡–‡†Š‘—•‡Ǥ‡’—”…Šƒ•‡†’”‘’‡”–›‹—”ƒ–Ǥ
‹•ˆƒ–Š‡”ƒ†ˆƒ‹Ž›‡„‡”•Ž‹˜‡‹ƒ‡™Ž›’—”…Šƒ•‡†Š‘—•‡Ǥ‡‹•„—›‹‰ƒŠ‘‡ˆ‘”–Š‡ϐ‹”•––‹‡ǡ•‘Š‡…ƒ
–ƒ‡„‡‡ϐ‹–‘ˆ•‡…–‹‘ͺͲǤŠ‡…‘•–‘ˆƒŠ‘‡‹•ͶͷƒŠƒ†Ǥ‡’—”…Šƒ•‡†–Š‹•Š‘‡„›–ƒ‹‰ƒŠ‘‡Ž‘ƒ‘ˆ
ͶͲƒŠ‹ƒ›ʹͲʹͳǤ
Š‡‘–ŠŽ›‘ˆ–Š‹•’”‘’‡”–›‹••Ǥ͵͹ͲͲͲǤŠ‡–‘–ƒŽ‘ˆˆ‘” ʹͲʹͳǦʹʹ™‹ŽŽ„‡ͶǤͲ͹ƒŠǤŠ‹•‹…Ž—†‡•
’”‹…‹’ƒŽ’ƒ›‡–‘ˆͲǤ͵ƒŠƒ†͵Ǥ͹͹ƒŠ‘ˆ‹–‡”‡•–…‘’‘‡–Ǥ
•‹–‹••‡Žˆ‘……—’‹‡†Š‘—•‡ƒ†ˆ—Žϐ‹ŽŽ‹‰…‘†‹–‹‘‘ˆ•‡…–‹‘ͺͲǡƒ‡•Š…ƒ…Žƒ‹͵ǤͷƒŠƒ•–ƒš†‡†—…–‹‘
™Š‹Ž‡ϐ‹Ž‹‰…‘‡–ƒš”‡–—”Ǥ

Tax incentives for Electric Vehicles [Section 80EEB]

…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆƒƒ••‡••‡‡ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽǡ–Š‡”‡•ŠƒŽŽ„‡†‡†—…–‡†ǡ‹ƒ……‘”†ƒ…‡™‹–Šƒ†
•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ǡ‹–‡”‡•–’ƒ›ƒ„Ž‡‘Ž‘ƒ–ƒ‡„›Š‹ˆ”‘ƒ›ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ˆ‘”–Š‡
’—”’‘•‡‘ˆ’—”…Šƒ•‡‘ˆƒ‡Ž‡…–”‹…˜‡Š‹…Ž‡Ǥ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 353

Š‡ †‡†—…–‹‘ —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ •ŠƒŽŽ ‘– ‡š…‡‡† •Ǥ ͳǡͷͲǡͲͲͲ ƒ† •ŠƒŽŽ „‡ ƒŽŽ‘™‡† ‹ …‘’—–‹‰ –Š‡ –‘–ƒŽ
‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲƒ†•—„•‡“—‡–ƒ••‡••‡–
›‡ƒ”•Ǥ
Š‡ †‡†—…–‹‘ —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ •ŠƒŽŽ „‡ •—„Œ‡…– –‘ –Š‡ …‘†‹–‹‘ –Šƒ– –Š‡ Ž‘ƒ Šƒ• „‡‡ •ƒ…–‹‘‡† „› –Š‡
ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡1st day of April, 2019 and ending on the 31st day of
March, 2023.
Š‡”‡ƒ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•ƒŽŽ‘™‡†ˆ‘”ƒ›‹–‡”‡•–”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͳȌǡ†‡†—…–‹‘•ŠƒŽŽ‘–
„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ•—…Š‹–‡”‡•–—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•…–ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”ƒ••‡••‡–
›‡ƒ”Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡȂ
ȋƒȌ Dz‡Ž‡…–”‹…˜‡Š‹…Ž‡dz‡ƒ•ƒ˜‡Š‹…Ž‡™Š‹…Š‹•’‘™‡”‡†‡š…Ž—•‹˜‡Ž›„›ƒ‡Ž‡…–”‹…‘–‘”™Š‘•‡–”ƒ…–‹‘‡‡”‰›
‹• •—’’Ž‹‡† ‡š…Ž—•‹˜‡Ž› „› –”ƒ…–‹‘ „ƒ––‡”› ‹•–ƒŽŽ‡†  ‹ –Š‡ ˜‡Š‹…Ž‡ ƒ† Šƒ• •—…Š ‡Ž‡…–”‹… ”‡‰‡‡”ƒ–‹˜‡
„”ƒ‹‰•›•–‡ǡ™Š‹…Š†—”‹‰„”ƒ‹‰’”‘˜‹†‡•ˆ‘”–Š‡…‘˜‡”•‹‘‘ˆ˜‡Š‹…Ž‡‹‡–‹…‡‡”‰›‹–‘‡Ž‡…–”‹…ƒŽ
‡‡”‰›Ǣ
ȋ„Ȍ Dzϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘dz‡ƒ•ƒ„ƒ‹‰…‘’ƒ›–‘™Š‹…Š–Š‡ƒ‹‰‡‰—Žƒ–‹‘…–ǡͳͻͶͻƒ’’Ž‹‡•ǡ‘”
ƒ›„ƒ‘”„ƒ‹‰‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͷͳ‘ˆ–Šƒ–…–ƒ†‹…Ž—†‡•ƒ›†‡’‘•‹––ƒ‹‰‘Ǧ
„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›‘”ƒ•›•–‡‹…ƒŽŽ›‹’‘”–ƒ–‘Ǧ†‡’‘•‹––ƒ‹‰‘Ǧ„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›
ƒ•†‡ϐ‹‡†‹…Žƒ—•‡•ȋ‡Ȍƒ†ȋ‰Ȍ‘ˆš’Žƒƒ–‹‘Ͷ–‘•‡…–‹‘Ͷ͵Ǥ
Deduction in respect of donations to certain funds, charitable institutions, etc. [Section 80G]
‡…–‹‘ͺͲ
’”‘˜‹†‡•†‡†—…–‹‘–‘ƒŽŽƒ••‡••‡‡ǯ•ˆ‘”†‘ƒ–‹‘•–‘•’‡…‹ϐ‹‡†‘”‰ƒ‹œƒ–‹‘•‘”‹•–‹–—–‹‘•‘”ˆ—†•Ǥ
‘™‡˜‡”ǡƒ›†‘ƒ–‹‘‘ˆƒ›•—‡š…‡‡†‹‰•ǤʹǡͲͲͲ•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘—†‡”–Š‡•‡…–‹‘—Ž‡••
•—…Š•—‹•’ƒ‹†„›ƒ›‘†‡‘–Š‡”–Šƒ…ƒ•ŠǤ —”–Š‡”ǡ™Š‡”‡ƒƒ••‡••‡‡Šƒ•…Žƒ‹‡†ƒ†Šƒ•„‡‡ƒŽŽ‘™‡†ƒ›
†‡†—…–‹‘ —†‡” –Š‹• •‡…–‹‘ ‹ ”‡•’‡…– ‘ˆ ƒ› ƒ‘—– ‘ˆ †‘ƒ–‹‘ǡ –Š‡ •ƒ‡ ƒ‘—– ™‹ŽŽ ‘– ƒ‰ƒ‹ “—ƒŽ‹ˆ› ˆ‘”
†‡†—…–‹‘—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‡…–ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”ƒ••‡••‡–›‡ƒ”Ǥ‘ƒ–‹‘•‹‹†‹•‘–
‡Ž‹‰‹„Ž‡ƒ•’‡”–Š‡—’”‡‡‘—”–—Ž‹‰ȋVijaipat Singhania ˜ǤȌǤ
Š‡“—ƒ–—‘ˆ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ†‡†—…–‹‘’‡”‹••‹„Ž‡—†‡”…Žƒ—•‡•ȋȌǡȋȌǡȋȌ
ƬȋȌ‡–‹‘‡†„‡Ž‘™Ǥ‘‰‡–Š‡”ˆ‘”ȋȌƒ†ȋȌ„‡Ž‘™ǡ–Š‡”‡‹•ƒ“—ƒŽ‹ˆ›‹‰Ž‹‹–™Š‹…Š‹•ͳͲΨ‘ˆƒ†Œ—•–‡†
”‘••
‘–ƒŽ…‘‡Ǥ
†Œ—•–‡†
”‘••–‘–ƒŽ‹…‘‡‡ƒ•–Š‡Dz
”‘••‘–ƒŽ…‘‡dzƒ•”‡†—…‡†„›ǣ
‹Ǥ ‘‰Ǧ–‡”ƒ’‹–ƒŽ‰ƒ‹•ǡ‹ˆƒ›™Š‹…ŠŠƒ˜‡„‡‡‹…Ž—†‡†‹–Š‡Dz
”‘••‘–ƒŽ…‘‡dzǤ
‹‹Ǥ ŽŽ†‡†—…–‹‘•’‡”‹••‹„Ž‡—†‡”‡…–‹‘•ͺͲ–‘ͺͲ‡š…‡’–‹‰†‡†—…–‹‘—†‡”‡…–‹‘ͺͲ
Ǥ
‹‹‹Ǥ š‡’–‡†…‘‡Ǥ
‹˜Ǥ …‘‡‘ˆ•ƒ† ‘”‡‹‰‘’ƒ‹‡•—†‡”‡…–‹‘•ͳͳͷǡͳͳͷǡͳͳͷǡͳͳͷ‘”ͳͳͷǤ
(A) 100% Deduction without any qualifying limit:
ȋ‹Ȍ ƒ–‹‘ƒŽ‡ˆ‡•‡ˆ—†Ǥ
ȋ‹‹Ȍ ”‹‡ ‹‹•–‡”ǯ• ƒ–‹‘ƒŽ ”‡Ž‹‡ˆ ˆ—† ‘” –Š‡ ”‹‡ ‹‹•–‡”ǯ• ‹–‹œ‡ ••‹•–ƒ…‡ ƒ† ‡Ž‹‡ˆ ‹
‡”‰‡…›‹–—ƒ–‹‘• —†ȋ Ȍȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲȐ
ȋ‹‹‹Ȍ ”‹‡‹‹•–‡”ǯ•ƒ”–Š“—ƒ‡”‡Ž‹‡ˆˆ—†Ǥ
ȋ‹˜Ȍ ˆ”‹…ƒˆ—†Ǥ
ȋ˜Ȍ ƒ–‹‘ƒŽ”—•–ˆ‘”™‡Žˆƒ”‡‘ˆ’‡”•‘•™‹–Šƒ—–‹•ǡ…‡”‡„”ƒŽ’ƒŽ•›ǡ‡–ƒŽ”‡–ƒ”†ƒ–‹‘ƒ†—Ž–‹’Ž‡
†‹•ƒ„‹Ž‹–‹‡•Ǥ
ȋ˜‹Ȍ ƒ–‹‘ƒŽ…—Ž–—”ƒŽˆ—†•‡–—’„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
ȋ˜‹‹Ȍ Š‡Š‹‡ˆ‹‹•–‡”ǯ•”‡Ž‹‡ˆˆ—†‘”–Š‡Ž‹‡—–‡ƒ–
‘˜‡”‘”ǯ•”‡Ž‹‡ˆˆ—†Ǥ
ȋ˜‹‹‹Ȍ ƒ–‹‘ƒŽŽŽ‡••••‹•–ƒ…‡ˆ—†Ǥ
354 Lesson 6 Ȉ EP-TL

ȋ‹šȌ Š‡†Š”ƒ”ƒ†‡•ŠŠ‹‡ˆ‹‹•–‡”ǯ•›…Ž‘‡‡Ž‹‡ˆ —†ǡͳͻͻ͸Ǥ

ȋšȌ Š‡”›Ȁ‹”ˆ‘”…‡‡–”ƒŽ™‡Žˆƒ”‡ˆ—†‘”–Š‡†‹ƒƒ˜ƒŽ‡‡˜‘Ž‡–ˆ—†Ǥ
ȋš‹Ȍ ›ˆ—†•‡–—’„›ƒ–ƒ–‡
‘˜‡”‡––‘’”‘˜‹†‡‡†‹…ƒŽ”‡Ž‹‡ˆ–‘’‘‘”•Ǥ
ȋš‹‹Ȍ Š‡ƒ–‹‘ƒŽȀ–ƒ–‡Ž‘‘†–”ƒ•ˆ—•‹‘‘—…‹ŽǤ
ȋš‹‹‹Ȍ ‹Žƒƒ•Šƒ”–ƒƒ‹–‹…‘•–‹–—–‡†‹ƒ›†‹•–”‹…–Ǥ
ȋš‹˜Ȍ ›ˆ—†•‡–—’„›–Š‡–ƒ–‡
‘˜‡”‡–‘ˆ
—Œƒ”ƒ–ǡ‡š…Ž—•‹˜‡Ž›ˆ‘”’”‘˜‹†‹‰”‡Ž‹‡ˆ–‘–Š‡˜‹…–‹•
‘ˆ‡ƒ”–Š“—ƒ‡‹
—Œƒ”ƒ–Ǥ
ȋš˜Ȍ ƒŠƒ”ƒ•Š–”ƒŠ‹‡ˆ‹‹•–‡”ǯ•ƒ”–Š“—ƒ‡‡Ž‹‡ˆ —†Ǥ
ȋš˜‹Ȍ ‹˜‡”•‹–›Ȁ†—…ƒ–‹‘ƒŽ•–‹–—–‡‘ˆƒ–‹‘ƒŽ‹‡…‡ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›Ǥ
ȋš˜‹‹Ȍ ƒ–‹‘ƒŽˆ‘—†ƒ–‹‘ˆ‘”…‘—ƒŽŠƒ”‘›Ǥ
ȋš˜‹‹‹Ȍ —†ˆ‘”–‡…Š‘Ž‘‰›†‡˜‡Ž‘’‡–ƒ†ƒ’’Ž‹…ƒ–‹‘ǡ•‡–—’„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
ȋš‹šȌ ƒ–‹‘ƒŽ•’‘”–•ˆ—†•‡–—’„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
ȋššȌ ƒ–‹‘ƒŽŠ‹Ž†”‡ǯ• —†Ǥ
ȋšš‹Ȍ –Š‡ ™ƒ…ŠŠ Šƒ”ƒ– ‘•Šǡ •‡– —’ „› –Š‡ ‡–”ƒŽ
‘˜‡”‡–ǡ ‘–Š‡” –Šƒ –Š‡ •— •’‡– „› –Š‡
ƒ••‡••‡‡‹’—”•—ƒ…‡‘ˆ‘”’‘”ƒ–‡‘…‹ƒŽ‡•’‘•‹„‹Ž‹–›—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ͳ͵ͷ‘ˆ
–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵Ǥ
ȋšš‹‹Ȍ –Š‡Ž‡ƒ
ƒ‰ƒ —†ǡ•‡–—’„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ™Š‡”‡ƒ••—…Šƒ••‡••‡‡‹•ƒ”‡•‹†‡–ƒ†
•—…Š•—‹•‘–Š‡”–Šƒ–Š‡•—•’‡–„›–Š‡ƒ••‡••‡‡‹’—”•—ƒ…‡‘ˆ‘”’‘”ƒ–‡‘…‹ƒŽ‡•’‘•‹„‹Ž‹–›
—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ͳ͵ͷ‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵Ǥ
ȋšš‹‹‹Ȍ –Š‡ƒ–‹‘ƒŽ —†ˆ‘”‘–”‘Ž‘ˆ”—‰„—•‡…‘•–‹–—–‡†—†‡”•‡…–‹‘͹‘ˆ–Š‡ƒ”…‘–‹…”—‰•
ƒ†•›…Š‘–”‘’‹…—„•–ƒ…‡•…–ǡͳͻͺͷǤ
(B) 50% Deduction without any qualifying limit:
ȋ‹Ȍ ƒ™ƒŠƒ”ŽƒŽ‡Š”—‡‘”‹ƒŽ —†Ǥ
ȋ‹‹Ȍ †‹”ƒ
ƒ†Š‹‡‘”‹ƒŽ”—•–Ǥ
ȋ‹‹‹Ȍ ƒŒ‹˜
ƒ†Š‹ ‘—†ƒ–‹‘Ǥ
ȋ‹˜Ȍ ”‹‡‹‹•–‡”ǯ•”‘—‰Š–‡Ž‹‡ˆ —†Ǥ
(C) 100% Deduction subject to qualifying limit:
ȋ‹Ȍ ›•—–‘
‘˜‡”‡–‘”ƒ›ƒ’’”‘˜‡†Ž‘…ƒŽƒ—–Š‘”‹–›ǡ‹•–‹–—–‹‘‘”ƒ••‘…‹ƒ–‹‘–‘„‡—–‹Ž‹œ‡†ˆ‘”
’”‘‘–‹‰ˆƒ‹Ž›’Žƒ‹‰Ǥ
ȋ‹‹Ȍ ›•—’ƒ‹†„›–Š‡ƒ••‡••‡‡ǡ„‡‹‰ƒ…‘’ƒ›ǡ‹–Š‡’”‡˜‹‘—•›‡ƒ”ƒ•†‘ƒ–‹‘–‘†‹ƒŽ›’‹…
••‘…‹ƒ–‹‘‘”–‘ƒ›‘–Š‡”ƒ••‘…‹ƒ–‹‘‡•–ƒ„Ž‹•Š‡†‹†‹ƒƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–
ˆ‘”ǣ
Ǥ ‡˜‡Ž‘’‡–‘ˆ‹ˆ”ƒ•–”—…–—”‡ˆ‘”•’‘”–•ƒ†‰ƒ‡•Ǣ‘”
Ǥ ’‘•‘”•Š‹’‘ˆ•’‘”–•ƒ†‰ƒ‡•‹†‹ƒǤ
(D) 50% Deduction subject to qualifying limit:
ȋ‹Ȍ ‘ƒ–‹‘–‘
‘˜‡”‡–‘”ƒ›ƒ’’”‘˜‡†‘…ƒŽ—–Š‘”‹–›ǡ•–‹–—–‹‘‘”••‘…‹ƒ–‹‘–‘„‡—–‹Ž‹œ‡†
ˆ‘”ƒ›Šƒ”‹–ƒ„Ž‡’—”’‘•‡‘–Š‡”–Šƒ’”‘‘–‹‰ˆƒ‹Ž›’Žƒ‹‰Ǥ
ȋ‹‹Ȍ ›‘–Š‡” —†‘”•–‹–—–‹‘ǡ™Š‹…Š•ƒ–‹•ϐ‹‡•–Š‡…‘†‹–‹‘•‘ˆ‡…–‹‘ͺͲ
ȋͷȌǤ
ȋ‹‹‹Ȍ ‘–‹ϐ‹‡†‡’Ž‡ǡ‘•“—‡ǡ
—”—†™ƒ”ƒǡŠ—”…Š‘”ƒ›‘–Š‡”’Žƒ…‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–
–‘„‡‘ˆŠ‹•–‘”‹…ǡƒ•…Š‘”‘Ž‘‰‹…ƒŽ‘”ƒ”–‹•–‹…‹’‘”–ƒ…‡ǡˆ‘””‡‘˜ƒ–‹‘‘””‡’ƒ‹”‘ˆ•—…Š’Žƒ…‡Ǥ
ȋ‹˜Ȍ ›…‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›–Š‡‡–”ƒŽ‘”–ƒ–‡
‘˜‡”‡–•’‡…‹ϐ‹‡†—†‡”‡…–‹‘ͳͲȋʹ͸Ȍ
ˆ‘”’”‘‘–‹‰‹–‡”‡•–•‘ˆ–Š‡‡„‡”•‘ˆƒ‹‘”‹–›…‘—‹–›Ǥ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 355

ȋ˜Ȍ › ƒ—–Š‘”‹–› …‘•–‹–—–‡† ‹ †‹ƒ „› ‘” —†‡” ƒ› Žƒ™ ˆ‘” •ƒ–‹•ˆ›‹‰ –Š‡ ‡‡† ˆ‘” Š‘—•‹‰
ƒ……‘‘†ƒ–‹‘‘”ˆ‘”–Š‡’—”’‘•‡‘ˆ’Žƒ‹‰†‡˜‡Ž‘’‡–‘”‹’”‘˜‡‡–‘ˆ…‹–‹‡•ǡ–‘™•ƒ†
˜‹ŽŽƒ‰‡•‘”ˆ‘”„‘–ŠǤ

Illustration 10:

ˆ”ǤǮǯŠƒ†‹…‘‡ƒ‰ƒ‹•––Š‡ˆ‘ŽŽ‘™‹‰Š‡ƒ†•ǡ Amount (Rs.Ȍ

ƒšƒ„Ž‡•ƒŽƒ”›‹…‘‡ ͶͲǡͲͲͲ
…‘‡ˆ”‘Š‘—•‡’”‘’‡”–› ͹ͷǡͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡• ʹͲǡͲͲͲ
–‡”‡•–‘•‡…—”‹–‹‡•‘ˆ–†Ǥȋ
”‘••Ȍ ͺǡͲͲͲ
Total 1,43,000

‡ƒ†‡ˆ‘ŽŽ‘™‹‰’ƒ›‡–•ǣ Amount (Rs.)

‘–”‹„—–‹‘–‘Ǥ Ǥȋ”‡…‘‰‹•‡†Ȍ ʹǡͲͲͲ
‘ƒ–‹‘–‘–Š‡”‹‡‹‹•–‡”ǯ•ƒ–‹‘ƒŽ‡Ž‹‡ˆ —† ʹǡͷͲͲ
‘ƒ–‹‘–‘–Š‡†‹”ƒ
ƒ†Š‹‡‘”‹ƒŽ”—•– ͶǡͲͲͲ
‘ƒ–‹‘–‘ƒƒ’’”‘˜‡†ƒ••‘…‹ƒ–‹‘ˆ‘”’”‘‘–‹‰ˆƒ‹Ž›’Žƒ‹‰ ͶǡͲͲͲ
‘ƒ–‹‘–‘ƒ’’”‘˜‡†…Šƒ”‹–ƒ„Ž‡–”—•– ͳͲǡͲͲͲ

‘’—–‡”Ǥǯ•–ƒšƒ„Ž‡‹…‘‡ˆ‘”ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ

Solution:
‹•–ƒšƒ„Ž‡‹…‘‡ˆ‘”ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵™‹ŽŽ„‡…‘’—–‡†ƒ•ˆ‘ŽŽ‘™•ǣ

Particulars Amount (Rs.)

‡–‹…‘‡ˆ”‘•ƒŽƒ”› ͶͲǡͲͲͲ
…‘‡ˆ”‘Š‘—•‡’”‘’‡”–› ͹ͷǡͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡• ʹͺǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳǡͶ͵ǡͲͲͲ
Lessǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲ ʹǡͲͲͲ
Lessǣ‡†—…–‹‘’‡”‹••‹„Ž‡ǣ‘ƒ–‹‘—†‡”‡…–‹‘ͺͲ
ͳ͵ǡͷͲͲ
ȋƒ•™‘”‡†‘—–„‡Ž‘™Ȍ
ƒšƒ„Ž‡‹…‘‡ ͳǡʹ͹ǡͷͲͲ
…‘‡Ǧ–ƒš‘•Ǥͳǡʹ͹ǡͷͲͲ 
‡––ƒš’ƒ›ƒ„Ž‡ȋ‹…Ž—†‹‰‡ƒŽ–ŠƬ†—…ƒ–‹‘…‡••̷ͶΨȌ 
Noteǣ†‡”‡…–‹‘ͺͲ
–Š‡˜ƒ”‹‘—•‹–‡•‘ˆ†‘ƒ–‹‘•™‹ŽŽ„‡†‡ƒŽ–™‹–Šƒ•—†‡”ǣ
ͳǤ ”‹‡‹‹•–‡”ǯ•ƒ–‹‘ƒŽ‡Ž‹‡ˆ —††‡†—…–‹„Ž‡‹ˆ—ŽŽ™‹–Š‘—–ƒ›”‡•–”‹…–‹‘•Ǥ
ʹǤ ‘ƒ–‹‘ –‘ †‹”ƒ
ƒ†Š‹ ‡‘”‹ƒŽ ”—•– ‹• †‡†—…–‹„Ž‡ –‘ –Š‡ ‡š–‡– ‘ˆ ͷͲΨ ‘ˆ †‘ƒ–‹‘ ™‹–Š‘—– ƒ›
”‡•–”‹…–‹‘•Ǥ
͵Ǥ ‘ƒ–‹‘–‘ƒ’’”‘˜‡†ˆƒ‹Ž›’Žƒ‹‰ƒ••‘…‹ƒ–‹‘‹•†‡†—…–‹„Ž‡‹ˆ—ŽŽ•‘Ž‘‰ƒ•‹–‹•™‹–Š‹–Š‡ͳͲΨ
Ž‹‹–‹’‘•‡†„›‡…–‹‘ͺͲ
ȋͶȌǤ
ͶǤ ‘ƒ–‹‘–‘ƒƒ’’”‘˜‡†…Šƒ”‹–ƒ„Ž‡–”—•–‹•†‡†—…–‹„Ž‡–‘–Š‡–—‡‘ˆͷͲΨ•‘Ž‘‰ƒ•‹–‹•ƒŽ•‘™‹–Š‹–Š‡
Ž‹‹–‹’‘•‡†„›‡…–‹‘ͺͲ
ȋͶȌǤ
356 Lesson 6 Ȉ EP-TL

ƒŽ…—Žƒ–‹‘‘ˆ†‡†—…–‹‘—†‡”‡…–‹‘ͺͲ
ǣ

”‘••‘–ƒŽ…‘‡ ͳǡͶ͵ǡͲͲͲ
Less ǣ ‡†—…–‹‘—†‡”‡…–‹‘•ͺͲ–‘ͺͲ ʹǡͲͲͲ
†Œ—•–‡†‰”‘••–‘–ƒŽ‹…‘‡ ͳǡͶͳǡͲͲͲ

ȋ‹Ȍ‘ƒ–‹‘‘™Š‹…Š“—ƒŽ‹ˆ›‹‰Ž‹‹–‹•‘–ƒ’’Ž‹…ƒ„Ž‡ǣ
ȋȌ ŽŽ‘™‡†̷ͳͲͲΨ
”‹‡‹‹•–‡”ǯ•ƒ–‹‘ƒŽ‡Ž‹‡ˆ —† ʹǡͷͲͲ
ȋȌ ŽŽ‘™‡†̷ͷͲΨ
†‹”ƒ
ƒ†Š‹‡‘”‹ƒŽ”—•–ȋͶͲͲͲȌ ʹǡͲͲͲ
ȋ‹‹Ȍ‘ƒ–‹‘–‘™Š‹…Š“—ƒŽ‹ˆ›‹‰Ž‹‹–‹•ƒ’’Ž‹…ƒ„Ž‡ǣ

ȋͳȌ ‘”’”‘‘–‹‘‘ˆˆƒ‹Ž›’Žƒ‹‰ ͶǡͲͲͲ

ȋʹȌŠƒ”‹–ƒ„Ž‡–”—•– ͳͲǡͲͲͲ
‹‹–‡†–‘ͳͲΨ‘ˆ†Œ—•–‡†
”‘••‘–ƒŽ…‘‡ǣ ͳͶǡͲͲͲ
‹Ǥ‡Ǥǡ•ǤͳͶǡͳͲͲȀǦ‹…‡†‘ƒ–‹‘–‘ˆƒ‹Ž›’Žƒ‹‰ƒ”‡Ž‘™‡•––Šƒƒš‹—ƒŽŽ‘™ƒ„Ž‡Ǥ ͻǡͲͲͲ
Š‡”‡ˆ‘”‡ǡƒŽŽ‘™ƒ„Ž‡ƒ‘—–‹•ȋͶǡͲͲͲΪͷǡͲͲͲȌ•ǤͻǡͲͲͲȀǦ

‘–ƒŽ‡†—…–‹‘ˆ‘”‡…–‹‘ͺͲ
ͳ͵ǡͷͲͲ

CASE LAW

03.01.2017 CIT vs. Dr. Virendra Swaroop Educational Foundation Allahabad High Court
Commissioner of Income Tax cannot refuse to renew the approval u/s 80G (5) on account of the fact that
for the previous three years, the Assessee has shown surpluses.
Fact of the Case: Š‡ ƒ••‡••‡‡Ǧ–”—•– ‹• ‡‰ƒ‰‡† ‹ ‡†—…ƒ–‹‘ƒŽ ƒ…–‹˜‹–‹‡•ǤŠ‡ ‘‹••‹‘‡” ‘ˆ …‘‡ ƒš
”‡ˆ—•‡†–‘”‡‡™–Š‡ƒ’’”‘˜ƒŽ‘ˆ–Š‡ƒ••‡••‡‡—†‡”‡…–‹‘ͺͲ
ȋͷȌ‘ˆ–Š‡…‘‡ƒš…–‘ƒ……‘—–‘ˆ–Š‡ˆƒ…–
–Šƒ–ˆ‘”–Š‡’”‡˜‹‘—•–Š”‡‡›‡ƒ”•ǡ–Š‡ƒ••‡••‡‡Šƒ••Š‘™•—”’Ž—•‡•ƒ†ǡ–Š‡”‡ˆ‘”‡ǡ–Š‡†”‡™–Š‡…‘…Ž—•‹‘
–Šƒ– –Š‡ ƒ…–‹˜‹–‹‡• ‘ˆ –Š‡ ƒ••‡••‡‡ ™‡”‡ ‹ –Š‡ ƒ–—”‡ ‘ˆ …‘‡”…‹ƒŽ ‡–‡”’”‹•‡• ƒ† ‘ …Šƒ”‹–ƒ„Ž‡ ƒ…–‹˜‹–›
™Šƒ–•‘‡˜‡”™ƒ•„‡‹‰’—”•—‡†„›–Š‡ƒ••‡••‡‡Ǥ‡‹‰ƒ‰‰”‹‡˜‡†„›–Š‡‘”†‡”‘ˆ–Š‡’’‡ƒŽ•†ƒ–‡†ʹ͹ǤͳͲǤʹͲͲͻǡ
–Š‡ƒ••‡••‡‡ϐ‹Ž‡†ƒƒ’’‡ƒŽ„‡ˆ‘”‡–Š‡…‘‡ƒš’’‡ŽŽƒ–‡”‹„—ƒŽǮǯƒ†„›–Š‡‘”†‡”†ƒ–‡†ʹ͸ǤʹǤʹͲͳͲǡ
–Š‡…ƒ‡–‘–Š‡…‘…Ž—•‹‘–Šƒ––Š‡ƒ••‡••‡‡™ƒ•‡–‹–Ž‡†–‘„‡‰”ƒ–‡†ƒ”‡‡™ƒŽ—†‡”‡…–‹‘ͺͲ
ȋͷȌ‘ˆ
–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤŠ‡†‡’ƒ”–‡–’”‡ˆ‡””‡†ƒƒ’’‡ƒŽ„‡ˆ‘”‡‹‰Š‘—”–Ǥ
Š‡“—‡•–‹‘•‘ˆŽƒ™•‘—‰Š––‘„‡ƒ•™‡”‡†ƒ”‡Š‡”‡—†‡”ǣ
Dzȋ‹Ȍ ‹ˆ–Š‡…‘‡•–‘‘™–Šƒ–ƒ…–‹˜‹–‹‡•‘ˆ–Š‡ƒ••‡••‡‡ǯ•™‡”‡‘–‰‡—‹‡Ž›…Šƒ”‹–ƒ„Ž‡‘‡ǡŠ‡…ƒ
…ƒ…‡Ž–Š‡”‡‰‹•–”ƒ–‹‘‹‡š‡”…‹•‡‘ˆŠ‹•’‘™‡”•˜‡•–‡†—Ȁ•ͳʹȋ͵Ȍ‘ˆ–Š‡…–ƒ†Ǣ
ȋ‹‹Ȍ “—‡•–‹‘‘ˆ‰‡—‹‡‡••‘ˆ–Š‡…Šƒ”‹–ƒ„Ž‡–”—•–…ƒ‘–„‡‡šƒ‹‡†‹ƒ••‡••‡–’”‘…‡‡†‹‰•”ƒ–Š‡”
…ƒ„‡‡šƒ‹‡†„›–Š‡ƒ†‹…ƒ•‡‹–‹•ˆ‘—†ǡƒ–ƒ›•–ƒ‰‡ǡ–Šƒ––Š‡ƒ…–‹˜‹–‹‡•‘ˆ–Š‡–”—•–ƒ”‡‘–
‰‡—‹‡‘”–Šƒ––Š‡”‡‹•‘‡Ž‡‡–‘ˆ…Šƒ”‹–›‹–Š‡ƒ…–‹˜‹–‹‡•‘ˆ–Š‡ƒ••‡••‡‡ǡ–Š‡…ƒ™‹–Š†”ƒ™–Š‡
”‡‰‹•–”ƒ–‹‘‹‡š‡”…‹•‡‘ˆŠ‹•’‘™‡”•˜‡•–‡†—Ȁ•ͳʹȋ͵Ȍ‘ˆ–Š‡…–Ǥdz
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 357

Decision:–Šƒ•„‡‡Š‡Ž†–Šƒ–‹–‹•‡…‡••ƒ”›ˆ‘”„‡‹‰‰”ƒ–‡†ƒ…‡”–‹ϐ‹…ƒ–‡—†‡”‡…–‹‘ͺͲ
ȋͷȌ‘ˆ–Š‡…––Šƒ–
’—”’‘•‡••Š‘—Ž†„‡…Šƒ”‹–ƒ„Ž‡Ǥ‘™‡˜‡”ǡˆ”‘–Š‡ƒ–‡”‹ƒŽƒ˜ƒ‹Žƒ„Ž‡‘”‡…‘”†ǡŠ‡‹•—ƒ„Ž‡–‘•Š‘™ƒ›ƒ…–‘ˆ
–Š‡ƒ••‡••‡‡‘”ƒ›ƒ…–‹˜‹–›‘ˆ–Š‡ƒ••‡••‡‡ǡ™Š‹…Š™‘—Ž†‘–ƒ‘—––‘ƒ…Šƒ”‹–ƒ„Ž‡’—”’‘•‡™‹–Š‹–Š‡‡ƒ‹‰
‘ˆ‡…–‹‘ʹȋͳͷȌ‘ˆ–Š‡…‘‡ƒš…–ǡ™Š‹…Š”‡ƒ†•ƒ•—†‡”ǣǦ
DzŠƒ”‹–ƒ„Ž‡ ’—”’‘•‡dz ‹…Ž—†‡• ”‡Ž‹‡ˆ ‘ˆ –Š‡ ’‘‘”ǡ ‡†—…ƒ–‹‘ǡ ‡†‹…ƒŽ ”‡Ž‹‡ˆǡ ȏ’”‡•‡”˜ƒ–‹‘ ‘ˆ ‡˜‹”‘‡–
ȋ‹…Ž—†‹‰™ƒ–‡”•Š‡†ǡˆ‘”‡•–•ƒ†™‹Ž†Ž‹ˆ‡Ȍƒ†’”‡•‡”˜ƒ–‹‘‘ˆ‘—‡–•‘”’Žƒ…‡•‘”‘„Œ‡…–•‘ˆƒ”–‹•–‹…‘”
Š‹•–‘”‹…‹–‡”‡•–ǡȐƒ†–Š‡ƒ†˜ƒ…‡‡–‘ˆƒ›‘–Š‡”‘„Œ‡…–‘ˆ‰‡‡”ƒŽ’—„Ž‹…—–‹Ž‹–›Ǥdz
”‘”‡ƒ†‹‰‘ˆ–Š‡ƒ„‘˜‡†‡ϐ‹‹–‹‘ǡ‹–‹•ƒ„—†ƒ–Ž›…Ž‡ƒ”–Šƒ––Š‡™‘”†‡†—…ƒ–‹‘—–‹Ž‹•‡†‹–Š‡•‡…–‹‘•–ƒ†•
‹†‡’‡†‡–Ž›‘‹–•‘™ƒ†–‘•—‰‰‡•––Šƒ––Š‡™‘”†ƒ›„‡…‘ϐ‹‡†‡‹–Š‡”–‘–Š‡”‹…Š‘”’‘‘”‘”ƒ›‘–Š‡”
•–”ƒ–ƒ‘ˆ–Š‡•‘…‹‡–›‹•‘–ƒ……‡’–ƒ„Ž‡ǤŠ‡™‘”†‡†—…ƒ–‹‘Šƒ•„‡‡—•‡†‹‹–•™‹†‡•––‡”Ǥ–…ƒ‘–„‡…‘ϐ‹‡†
–‘ ƒ› •‡…–‹‘ǡ ‹†‡‡† ‡†—…ƒ–‹‘ ‹• •‘‡–Š‹‰ ™Š‹…Š ‹• –Š‡ „‹”–Š ”‹‰Š– ‘ˆ ‡˜‡”› ‹†‹˜‹†—ƒŽǤ ‘ …‘ϐ‹‡ ‹– –‘ ƒ
…‡”–ƒ‹‰”‘—’™‘—Ž†‘–„‡ˆƒ‹”‹˜‹‡™‘ˆ–Š‡†‡ϐ‹‹–‹‘ƒ•‰‹˜‡‹‡…–‹‘ʹȋͳͷȌ‘ˆ–Š‡…‘‡ƒš…–ƒ†‹
˜‹‡™‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͲȋʹ͵Ȍ‘ˆ–Š‡…‘‡ƒš…–Ǥ
–‹•ƒ„—†ƒ–Ž›…Ž‡ƒ”–Šƒ––Š‡ƒ••‡••‡‡™ƒ•…Ž‡ƒ”Ž›‡–‹–Ž‡†–‘„‡‰”ƒ–‡†‡š‡’–‹‘—†‡”‡…–‹‘ͺͲ
ȋͷȌ‘ˆ–Š‡
…‘‡ƒš…–ˆ‘”–Š‡…—””‡–›‡ƒ”ƒ•‹–Šƒ•„‡‡†‘‡‹–Š‡’”‡˜‹‘—•›‡ƒ”‹˜‹‡™‘ˆ–Š‡Žƒ™ƒ†‹˜‹‡™‘ˆ–Š‡
ϐ‹†‹‰•”‡…‘”†‡†Ǥ
Š‡”‡ˆ‘”‡ǡ–Š‡“—‡•–‹‘•‘ˆŽƒ™ƒ”‡ƒ•™‡”‡†‹ˆƒ˜‘—”‘ˆ–Š‡ƒ••‡••‡‡Ǥ

Deduction in respect of Rent Paid [Section 80GG]

‡…–‹‘ͺͲ

’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ‹†‹˜‹†—ƒŽˆ‘””‡–’ƒ‹†‹ˆ‹…ƒ•‡–Š‡‹†‹˜‹†—ƒŽ†‘‡•‘–”‡…‡‹˜‡‡š‡’–
—Ȁ• ͳͲȋͳ͵Ȍ ‘” ”‡– ˆ”‡‡ ƒ……‘‘†ƒ–‹‘ ˆ”‘ Š‹• ‡’Ž‘›‡”Ǥ Š‡ ƒ……‘‘†ƒ–‹‘ •Š‘—Ž† „‡ ‘……—’‹‡† „› –Š‡
ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡‘ˆŠ‹•‘™”‡•‹†‡…‡Ǥ —”–Š‡”ǡ–Š‡‹†‹˜‹†—ƒŽȀ•’‘—•‡Ȁ‹‘”…Š‹Ž†Ȁ ‘ˆ™Š‹…ŠŠ‡‘”•Š‡
‹•‡„‡”†‘‡•‘–‘™ƒ”‡•‹†‡–‹ƒŽƒ……‘‘†ƒ–‹‘ƒ–ƒ’Žƒ…‡™Š‡”‡–Š‡‹†‹˜‹†—ƒŽ”‡•‹†‡•ǡ’‡”ˆ‘”•–Š‡†—–‹‡•
‘ˆŠ‹•‘ˆϐ‹…‡‘”‡’Ž‘›‡–‘”…ƒ””‹‡•‘Š‹•‘”Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘Ǥ ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••‡…–‹‘ǡ–Š‡
‹†‹˜‹†—ƒŽ™‹ŽŽ‰‹˜‡†‡…Žƒ”ƒ–‹‘‹ ‘”ͳͲǤŠ‡ƒ‘—–‘ˆ†‡†—…–‹‘ƒ†‹••‹„Ž‡—†‡”–Š‹•‡…–‹‘‹•Ž‘™‡”‘ˆǣ
Ȉ …–—ƒŽ”‡–’ƒ‹†Ž‡••ͳͲΨ‘ˆǮ†Œ—•–‡†‘–ƒŽ…‘‡ǯǤ
Ȉ ʹͷΨ‘ˆ•—…ŠǮ†Œ—•–‡†‘–ƒŽ…‘‡ǯǤ
Ȉ ‘—–…ƒŽ…—Žƒ–‡†ƒ–•ǤͷǡͲͲͲ’ǤǤ
Š‡”‡†Œ—•–‡†‘–ƒŽ…‘‡‡ƒ•–Š‡
”‘••–‘–ƒŽ‹…‘‡ƒ•”‡†—…‡†„›Ž‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹‹ˆ‹…Ž—†‡†‹–Š‡
‰”‘••–‘–ƒŽ‹…‘‡ƒ†‹…‘‡”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͳͷ–‘ͳͳͷƒ†–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ
‘–Š‡”–Šƒ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘Ǥ

Illustration 11:

ˆ”ǤǮǯŠƒ†‹…‘‡ƒ‰ƒ‹•––Š‡ˆ‘ŽŽ‘™‹‰Š‡ƒ†•ǡ

Particulars Amount (Rs.)

”‘ˆ‡••‹‘ƒŽ‹…‘‡ ͸ǡͶͲǡͲͲͲ
…‘‡ˆ”‘
ȋ…‘˜‡”‡†—†‡”•‡…–‹‘ͳͳͳȌ ͷǡͲͲͲ
…‘‡ˆ”‘
ͳʹǡͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡• ͳͲǡͲͲͲ
‘–”‹„—–‹‘–‘ǤǤ Ǥ ͹ͲǡͲͲͲ
Payment of Rent ;ͺǡͶͶͶ
‘’—–‡”Ǥǯ•–ƒšƒ„Ž‡‹…‘‡ˆ‘”ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
 358 Lesson 6 Ȉ EP-TL

Solution:
‹•–ƒšƒ„Ž‡‹…‘‡ˆ‘”ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵™‹ŽŽ„‡…‘’—–‡†ƒ•ˆ‘ŽŽ‘™•ǣ

Particulars Amount (Rs.)

Professional income 6,40,000

…‘‡ˆ”‘…ƒ’‹–ƒŽ‰ƒ‹• ͳ͹ǡͲͲͲ

…‘‡ˆ”‘‘–Š‡”•‘—”…‡• ͳͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͸ǡ͸͹ǡͲͲͲ

Less ǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲ ȋ͹ͲǡͲͲͲȌ

Less ǣ‡†—…–‹‘—†‡”‡…–‹‘ͺͲ

ȋƒ•™‘”‡†‘—–„‡Ž‘™Ȍ ȋʹ͸ǡͲͲͲȌ
Taxable income 571,000

Working Note:
‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•†‡†—…–‹„Ž‡—†‡”•‡…–‹‘ͺͲ

Ȉ ͺͶǡͲͲͲȂȋͳͲΨ‘ˆͷǡͺͲǡͲͲͲȌαʹ͸ǡͲͲͲ
Ȉ ʹͷΨ‘ˆͷǡͺͲǡͲͲͲαͳǡͶͷǡͲͲͲǤ
Ȉ •ǤͷǡͲͲͲȗͳʹα͸ͲǡͲͲͲ
‡†—…–‹‘—†‡”‡…–‹‘ͺͲ

‹•Ž‘™‡”‘ˆ–Š”‡‡ƒ„‘˜‡•Ǥʹ͸ǡͲͲͲǤ†Œ—•–‡†‘–ƒŽ…‘‡α͸ǡ͸͹ǡͲͲͲǦͳ͹ǡͲͲͲǦ
͹ͲǡͲͲͲαͷǡͺͲǡͲͲͲǤ
‘–‡ǣˆ–Š‡••‡••‡‡‘’–‡†–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͳͷǡ†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲȀͺͲ

‹•‘–ƒ˜ƒ‹Žƒ„Ž‡Ǥ

‡†—…–‹‘ ‹ ‡•’‡…– ‘ˆ ‡”–ƒ‹ ‘ƒ–‹‘• ˆ‘” …‹‡–‹ϐ‹… ‡•‡ƒ”…Š ‘” —”ƒŽ ‡˜‡Ž‘’‡–
[Section 80GGA]
‡…–‹‘ͺͲ

’”‘˜‹†‡•ͳͲͲΨ†‡†—…–‹‘–‘ƒ›ƒ••‡••‡‡ȋ‘–Š‡”–Šƒƒƒ••‡••‡‡™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡‹…Ž—†‡•
‹…‘‡ …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† Dz’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘dzȌ ‹ ”‡•’‡…– ‘ˆ –Š‡ ˆ‘ŽŽ‘™‹‰
’ƒ›‡–•Ȁ†‘ƒ–‹‘•ǣ
ƒȌ —•’ƒ‹†–‘ƒ”‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘™Š‹…ŠŠƒ•ǡƒ•‹–•‘„Œ‡…––Š‡—†‡”–ƒ‹‰‘ˆ•…‹‡–‹ϐ‹…”‡•‡ƒ”…Šǡ‘”–‘ƒ
—‹˜‡”•‹–›ǡ…‘ŽŽ‡‰‡‘”‘–Š‡”‹•–‹–—–‹‘–‘„‡—•‡†ˆ‘”•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š™Š‡”‡•—…Šƒ••‘…‹ƒ–‹‘ǡ—‹˜‡”•‹–›ǡ
…‘ŽŽ‡‰‡‘”‹•–‹–—–‹‘Šƒ•„‡‡ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›ˆ‘”–Š‡’—”’‘•‡‘ˆ‡…–‹‘͵ͷȋͳȌȋ‹‹ȌǤ
„Ȍ ›•—’ƒ‹†„›–Š‡ƒ••‡••‡‡‹–Š‡’”‡˜‹‘—•›‡ƒ”–‘ƒ”‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘™Š‹…ŠŠƒ•ƒ•‹–•‘„Œ‡…––Š‡
—†‡”–ƒ‹‰ ‘ˆ ”‡•‡ƒ”…Š ‹ •‘…‹ƒŽ •…‹‡…‡ ‘” •–ƒ–‹•–‹…ƒŽ ”‡•‡ƒ”…Š ‘” –‘ ƒ ‹˜‡”•‹–› ‘” …‘ŽŽ‡‰‡ ‘” ‘–Š‡”
‹•–‹–—–‹‘–‘„‡—•‡†ˆ‘”•‘…‹ƒŽ•…‹‡…‡‘”•–ƒ–‹•–‹…ƒŽ”‡•‡ƒ”…Š™Š‡”‡•—…Šƒ••‘…‹ƒ–‹‘‘”—‹˜‡”•‹–›…‘ŽŽ‡‰‡
‘”‹•–‹–—–‹‘‹•ˆ‘”–Š‡–‹‡„‡‹‰ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›ˆ‘”–Š‡’—”’‘•‡‘ˆ‡…–‹‘͵ͷȋͳȌȋ‹‹‹ȌǤ
…Ȍ —• ’ƒ‹† –‘ ƒ ƒ’’”‘˜‡† ƒ••‘…‹ƒ–‹‘ ‘” ‹•–‹–—–‹‘ ™Š‹…Š Šƒ• ƒ• ‹–• ‘„Œ‡…– –Š‡ —†‡”–ƒ‹‰ ‘ˆ ƒ›
’”‘‰”ƒ‡‘ˆ”—”ƒŽ†‡˜‡Ž‘’‡–ǡ–‘„‡—•‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ…ƒ””›‹‰‘—–ƒ›’”‘‰”ƒ‡‘ˆ”—”ƒŽ
†‡˜‡Ž‘’‡–ƒ’’”‘˜‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡…–‹‘͵ͷ’”‘˜‹†‡†–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•–Š‡…‡”–‹ϐ‹…ƒ–‡
”‡ˆ‡””‡†–‘‹‡…–‹‘͵ͷȋʹȌǤ
†Ȍ —• ’ƒ‹† –‘ ƒ ƒ’’”‘˜‡† ƒ••‘…‹ƒ–‹‘ ‘” ‹•–‹–—–‹‘ ™Š‹…Š Šƒ• ƒ• ‹–• ‘„Œ‡…– –Š‡ —†‡”–ƒ‹‰ ‘ˆ ƒ›
’”‘‰”ƒ‡ ‘ˆ ”—”ƒŽ †‡˜‡Ž‘’‡– ’”‘˜‹†‡† –Š‡ ƒ••‡••‡‡ ˆ—”‹•Š‡• ƒ …‡”–‹ϐ‹…ƒ–‡ ”‡ˆ‡””‡† –‘ ‹ ‡…–‹‘
͵ͷȋʹȌǤ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 359

‡Ȍ ›•—’ƒ‹†„›–Š‡ƒ••‡••‡‡‹–Š‡’”‡˜‹‘—•›‡ƒ”–‘ƒ’—„Ž‹…•‡…–‘”…‘’ƒ›‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›‘”ƒ
ƒ••‘…‹ƒ–‹‘ ‘” ‹•–‹–—–‹‘ ƒ’’”‘˜‡† „› –Š‡ ƒ–‹‘ƒŽ ‘‹––‡‡ ˆ‘” …ƒ””›‹‰ ‘—– ƒ› ‡Ž‹‰‹„Ž‡ ’”‘Œ‡…– ‘”
•…Š‡‡ǡ’”‘˜‹†‡†–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒ…‡”–‹ϐ‹…ƒ–‡”‡ˆ‡””‡†–‘‹‡…–‹‘͵ͷȋʹȌȋƒȌǤ
ˆȌ ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• …Žƒ—•‡ǡ Ǯƒ–‹‘ƒŽ ‘‹––‡‡ǯ ‡ƒ• –Š‡ …‘‹––‡‡ …‘•–‹–—–‡† „› –Š‡ ‡–”ƒŽ

‘˜‡”‡–ˆ”‘ƒ‘‰•–’‡”•‘•‘ˆ‡‹‡…‡‹’—„Ž‹…Ž‹ˆ‡ǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”—Ž‡•ƒ†‡—†‡”
…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳƒ†Dz‡Ž‹‰‹„Ž‡’”‘Œ‡…–‘”•…Š‡‡dz‡ƒ••—…Š’”‘Œ‡…–‘”•…Š‡‡ˆ‘”’”‘‘–‹‰–Š‡
•‘…‹ƒŽƒ†‡…‘‘‹…™‡Žˆƒ”‡‘ˆǡ‘”–Š‡—’Ž‹ˆ–‘ˆǡ–Š‡’—„Ž‹…ƒ•ƒ›„‡‘–‹ϐ‹‡†„›‡–”ƒŽ
‘˜‡”‡–‘–Š‡
”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡ƒ–‹‘ƒŽ‘‹––‡‡Ǥ
‰Ȍ —• ’ƒ‹† „‡ˆ‘”‡ ’”‹Ž ͳǡ ʹͲͲʹ –‘ ƒ ƒ’’”‘˜‡† ƒ••‘…‹ƒ–‹‘ ‘” ‹•–‹–—–‹‘ ™Š‹…Š Šƒ• ƒ• ‹–• ‘„Œ‡…– –Š‡
—†‡”–ƒ‹‰‘ˆƒ›’”‘‰”ƒ‡‘ˆ…‘•‡”˜ƒ–‹‘‘ˆƒ–—”ƒŽ”‡•‘—”…‡•‘”ƒˆˆ‘”‡•–ƒ–‹‘–‘„‡—•‡†ˆ‘”…ƒ””›‹‰
‘—– ƒ› ’”‘‰”ƒ‡ ‘ˆ …‘•‡”˜ƒ–‹‘ ‘ˆ ƒ–—”ƒŽ ”‡•‘—”…‡• ‘” ‘ˆ ƒˆˆ‘”‡•–ƒ–‹‘ ƒ’’”‘˜‡† —†‡” ‡…–‹‘
͵ͷȋʹȌǤ
ŠȌ —•’ƒ‹†–‘–Š‡ƒ–‹‘ƒŽ —†ˆ‘”—”ƒŽ‡˜‡Ž‘’‡–•‡–—’ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ‘”
–Š‡’—”’‘•‡‘ˆ…ƒ””›‹‰‘—–”—”ƒŽ†‡˜‡Ž‘’‡–ǤŠ‹••‡…–‹‘ƒŽ•‘’”‘˜‹†‡•–Šƒ–™Š‡”‡†‡†—…–‹‘—†‡”
–Š‹••‡…–‹‘‹•…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†ǡ†‡†—…–‹‘™‹ŽŽ‘–„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ–Š‡•ƒ‡’ƒ›‡–—†‡”
ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‡…–ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”ƒ••‡••‡–›‡ƒ”Ǥ
‹Ȍ ›•—’ƒ‹†„›–Š‡ƒ••‡••‡‡‹–Š‡’”‡˜‹‘—•›‡ƒ”–‘–Š‡ƒ–‹‘ƒŽ”„ƒ‘˜‡”–›”ƒ†‹…ƒ–‹‘ —†•‡–—’
ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
No deduction shall be allowed under this section in respect of any sum exceeding two thousand rupees unless
such sum is paid by any mode other than cash.[Amendment vide Finance Act, 2020]

Deduction in respect of contributions given by Companies to Political Parties or an Electoral

Trust [Section 80GGB]
‡…–‹‘ͺͲ

’”‘˜‹†‡•ͳͲͲΨ†‡†—…–‹‘ˆ‘”ƒ›•—…‘–”‹„—–‡†„›ƒ†‹ƒ‘’ƒ›‹–Š‡’”‡˜‹‘—•›‡ƒ”–‘ƒ›
’‘Ž‹–‹…ƒŽ’ƒ”–›‘”–‘ƒ‡Ž‡…–‘”ƒŽ–”—•–™Š‹Ž‡…‘’—–‹‰‹–•–‘–ƒŽ‹…‘‡„›ƒ‘†‡‘–Š‡”–Šƒ…ƒ•ŠǤ

Deduction in respect of contributions given by any person to Political Parties or an Electoral

Trust [Section 80GGC]
‡…–‹‘ͺͲ

’”‘˜‹†‡•ͳͲͲΨ†‡†—…–‹‘ˆ‘”ƒ›•—…‘–”‹„—–‡†„›ƒƒ••‡••‡‡„‡‹‰ƒ›’‡”•‘–‘ƒ’‘Ž‹–‹…ƒŽ
’ƒ”–›‘”ƒ‡Ž‡…–‘”ƒŽ–”—•–‡š…‡’–Ž‘…ƒŽƒ—–Š‘”‹–›ƒ†‡˜‡”›ƒ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ’‡”•‘™Š‘ŽŽ›‘”’ƒ”–Ž›ˆ—†‡†„›–Š‡

‘˜‡”‡–™Š‹Ž‡…‘’—–‹‰‹–•–‘–ƒŽ‹…‘‡„›ƒ‘†‡‘–Š‡”–Šƒ…ƒ•ŠǤ

‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‹†—•–”‹ƒŽ—†‡”–ƒ‹‰•‘”‡–‡”’”‹•‡‡‰ƒ‰‡†‹
infrastructure development [Section 80-IA]
‡…–‹‘ͺͲ’”‘˜‹†‡•ƒ†‡†—…–‹‘–‘ƒƒ••‡••‡‡‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘ƒ›„—•‹‡••‘ˆǣ
 360 Lesson 6 Ȉ EP-TL

(1) Infrastructure facility ǣŠ‡‡–‡”’”‹•‡‹•…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ‘’‡”ƒ–‹‰ƒ›‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›™Š‹…Š

ˆ—Žϐ‹ŽŽ•–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ȋƒȌ –‹•‘™‡†„›ƒ†‹ƒ…‘’ƒ›‘”…‘•‘”–‹—‘ˆ…‘’ƒ‹‡•‘”„›ƒƒ—–Š‘”‹–›‘”ƒ„‘ƒ”†‘”ƒ…‘”’‘”ƒ–‹‘
‘”ƒ›‘–Š‡”„‘†›‡•–ƒ„Ž‹•Š‡†‘”…‘•–‹–—–‡†—†‡”ƒ›‡–”ƒŽ‘”–ƒ–‡…–”‡‰‹•–‡”‡†‹†‹ƒǢ
ȋ„Ȍ –‡–‡”•‹–‘ƒƒ‰”‡‡‡–™‹–Š–Š‡‡–”ƒŽ‘”–ƒ–‡
‘˜‡”‡–‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›‘”ƒ›‘–Š‡”•–ƒ–—–‘”›
„‘†›ˆ‘”ȋ‹Ȍ†‡˜‡Ž‘’‹‰ǡȋ‹‹Ȍ‘’‡”ƒ–‹‰ƒ†ƒ‹–ƒ‹‹‰ǡȋ‹‹‹Ȍ†‡˜‡Ž‘’‹‰ǡ‘’‡”ƒ–‹‰ƒ†ƒ‹–ƒ‹‹‰ǡƒ‡™
‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›Ǥ
ȋ…Ȍ ––”ƒ•ˆ‡”•—…Š‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›ƒˆ–‡”–Š‡’‡”‹‘†•–‹’—Žƒ–‡†‹–Š‡ƒ‰”‡‡‡––‘•—…Š
‘˜‡”‡–‘”
ƒ—–Š‘”‹–›‘”„‘†›…‘…‡”‡†Ǣ
ȋ†Ȍ –•–ƒ”–•‘’‡”ƒ–‹‰ƒ†ƒ‹–ƒ‹‹‰–Š‡‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡͳͻͻͷǤ
–Šƒ•‡–‡”‡†‹–‘ƒƒ‰”‡‡‡–™‹–Š–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›‘”ƒ›
‘–Š‡”•–ƒ–—–‘”›„‘†›ˆ‘”†‡˜‡Ž‘’‹‰ƒ•’‡…‹ƒŽ‡…‘‘‹…œ‘‡ƒ†ƒ‹–ƒ‹‹‰ƒ‡™‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›Ǥ
Š‡”‡ƒ‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›‹•–”ƒ•ˆ‡””‡†ƒˆ–‡”͵ͳǤ͵Ǥͳͻͻͻ„›ƒ‡–‡”’”‹•‡™Š‹…ŠŠƒ•†‡˜‡Ž‘’‡†‹––‘ƒ‘–Š‡”
‡–‡”’”‹•‡ˆ‘”‘’‡”ƒ–‹‰ƒ†ƒ‹–ƒ‹‹‰‹–‘‹–•„‡ŠƒŽˆǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ƒ‰”‡‡‡–™‹–Š’‡”•‘‡–‹‘‡†
‹ȋ„Ȍǡ–Š‡–”ƒ•ˆ‡”‡‡™‹ŽŽ‰‡––Š‡„‡‡ϐ‹–‘ˆ†‡†—…–‹‘ˆ‘”–Š‡—‡š’‹”‡†’‡”‹‘†Ǥ
Explanation Ǧ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Žƒ—•‡ǡDz‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›dz‡ƒ•ǣ
ȋƒȌ ƒ”‘ƒ†‹…Ž—†‹‰–‘ŽŽ”‘ƒ†ǡƒ„”‹†‰‡‘”ƒ”ƒ‹Ž•›•–‡Ǣ
ȋ„Ȍ ƒŠ‹‰Š™ƒ›’”‘Œ‡…–‹…Ž—†‹‰Š‘—•‹‰‘”‘–Š‡”ƒ…–‹˜‹–‹‡•„‡‹‰ƒ‹–‡”ƒŽ’ƒ”–‘ˆ–Š‡Š‹‰Š™ƒ›’”‘Œ‡…–Ǣ
ȋ…Ȍ ƒ™ƒ–‡”•—’’Ž›’”‘Œ‡…–ǡ™ƒ–‡”–”‡ƒ–‡–•›•–‡ǡ‹””‹‰ƒ–‹‘’”‘Œ‡…–ǡ•ƒ‹–ƒ–‹‘ƒ†•‡™‡”ƒ‰‡•›•–‡‘”•‘Ž‹†
™ƒ•–‡ƒƒ‰‡‡–•›•–‡Ǣ
ȋ†Ȍ ƒ’‘”–ǡƒ‹”’‘”–ǡ‹Žƒ†™ƒ–‡”™ƒ›‘”‹Žƒ†’‘”–Ǥ
™Ǥ‡ǤˆǤ••‡••‡–›‡ƒ”ʹͲͲͳǦͲʹǡ‹ˆ”ƒ•–”—…–—”‡ˆƒ…‹Ž‹–›•ŠƒŽŽƒŽ•‘‹…Ž—†‡™ƒ–‡”–”‡ƒ–‡–•›•–‡ƒ†•‘Ž‹†™ƒ•–‡
ƒƒ‰‡‡–•›•–‡Ǥ
Š‡„‡‡ϐ‹–‘ˆ†‡†—…–‹‘–‘Š‘—•‹‰ƒ†‘–Š‡”†‡˜‡Ž‘’‡–ƒ…–‹˜‹–‹‡•™Š‹…Šƒ”‡ƒ‹–‡”ƒŽ’ƒ”–‘ˆƒŠ‹‰Š™ƒ›’”‘Œ‡…–
•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ —…Š’”‘ϐ‹–•ƒ”‡–”ƒ•ˆ‡””‡†–‘ƒ•’‡…‹ƒŽ”‡•‡”˜‡ƒ……‘—–Ǥ
ȋ„Ȍ —…Š’”‘ϐ‹–•ƒ”‡—–‹Ž‹•‡†ˆ‘”Š‹‰Š™ƒ›’”‘Œ‡…–ǡ‡š…Ž—†‹‰Š‘—•‹‰ƒ†‘–Š‡”ƒ…–‹˜‹–‹‡•ǡ„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ
–Š”‡‡›‡ƒ”•ˆ‘ŽŽ‘™‹‰–Š‡›‡ƒ”‹™Š‹…Š–Š‡ƒ‘—–™ƒ•–”ƒ•ˆ‡””‡†–‘–Š‡”‡•‡”˜‡ƒ……‘—–Ǥ
Š‡ƒ‘—–”‡ƒ‹‹‰——–‹Ž‹•‡†•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•‹…‘‡‘ˆ–Š‡›‡ƒ”‹™Š‹…Š‹–™ƒ•–”ƒ•ˆ‡””‡†–‘–Š‡
”‡•‡”˜‡ƒ……‘—–Ǥ
(2) Telecommunication services ǣ › —†‡”–ƒ‹‰ ™Š‹…Š Šƒ• •–ƒ”–‡† ‘” •–ƒ”–• ’”‘˜‹†‹‰ –‡Ž‡…‘—‹…ƒ–‹‘
•‡”˜‹…‡•™Š‡–Š‡”„ƒ•‹…‘”…‡ŽŽ—Žƒ” ‹…Ž—†‹‰ ”ƒ†‹‘Ǧ’ƒ‰‹‰ǡ †‘‡•–‹…•ƒ–‡ŽŽ‹–‡ •‡”˜‹…‡‘”‡–™‘” ‘ˆ–”—‹‰ ƒ†
‡Ž‡…–”‘‹…†ƒ–ƒ‹–‡”…Šƒ‰‡•‡”˜‹…‡•ƒ–ƒ›–‹‡ƒˆ–‡”͵ͳǤ͵Ǥͳͻͻͷ„—–„‡ˆ‘”‡͵ͳǤ͵ǤʹͲͲͷǤ
‘‡•–‹… ƒ–‡ŽŽ‹–‡ ‡”˜‹…‡ ‡ƒ• ƒ •ƒ–‡ŽŽ‹–‡ ‘™‡† ƒ† ‘’‡”ƒ–‡† „› ƒ †‹ƒ ‘’ƒ› ˆ‘” ’”‘˜‹†‹‰
–‡Ž‡…‘—‹…ƒ–‹‘•‡”˜‹…‡•Ǥ
(3) Industrial park ǣ›—†‡”–ƒ‹‰™Š‹…Š†‡˜‡Ž‘’•ƒ•’‡…‹ƒŽ‡…‘‘‹…œ‘‡ƒ†‘’‡”ƒ–‡•ƒ‹†—•–”‹ƒŽ’ƒ”
ȋ‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ȍƒˆ–‡”͵ͳǤ͵Ǥͳͻͻ͹„—–„‡ˆ‘”‡ͳǤͶǤʹͲͲ͸ƒ†‹…ƒ•‡‘ˆǡ‹–•Š‘—Ž†„‡‰‹‘‘”
ƒˆ–‡”ͳǤͶǤʹͲͲͳ„—–„‡ˆ‘”‡ͳǤͶǤʹͲͲ͸Ǥ
Š‡”‡ƒ—†‡”–ƒ‹‰†‡˜‡Ž‘’•‹†—•–”‹ƒŽ’ƒ”ƒˆ–‡”͵ͳǤ͵Ǥͳͻͻͻƒ†–”ƒ•ˆ‡”•–Š‡‘’‡”ƒ–‹‘•ƒ†ƒ‹–‡ƒ…‡‘ˆ‹–
–‘ƒ‘–Š‡”—†‡”–ƒ‹‰ǡ–Š‡–”ƒ•ˆ‡”‡‡™‹ŽŽ‰‡––Š‡„‡‡ϐ‹–‘ˆ†‡†—…–‹‘ˆ‘”–Š‡—‡š’‹”‡†’‡”‹‘†Ǥ
‘™‡˜‡”ǡ˜‡•–‡–•ƒ†‡–‘†‡˜‡Ž‘’‹†—•–”‹ƒŽ’ƒ”Šƒ•„‡‡‡š–‡†‡†ˆ”‘͵ͳǤ͵ǤʹͲͲ͸–‘͵ͳǤ͵ǤʹͲͳͳǤ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 361

(4) Generation and distribution of power ǣ—†‡”–ƒ‹‰™Š‹…Šǣ

ȋƒȌ ‹••‡–Ǧ—’‹ƒ›’ƒ”–‘ˆ†‹ƒˆ‘”–Š‡‰‡‡”ƒ–‹‘‘”‰‡‡”ƒ–‹‘ƒ††‹•–”‹„—–‹‘‘ˆ’‘™‡”‹ˆ‹–„‡‰‹•–‘
‰‡‡”ƒ–‡’‘™‡”ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻ͵ƒ†‡†‹‰‘–Š‡
͵ͳ•–†ƒ›‘ˆƒ”…ŠʹͲͳ͹Ǥ
ȋ„Ȍ •–ƒ”–•–”ƒ•‹••‹‘‘”†‹•–”‹„—–‹‘„›Žƒ›‹‰ƒ‡–™‘”‘ˆ‡™–”ƒ•‹••‹‘‘”†‹•–”‹„—–‹‘Ž‹‡•ƒ–ƒ›
–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻͻƒ†‡†‹‰‘–Š‡͵ͳ•–†ƒ›‘ˆƒ”…ŠʹͲͳ͹Ǥ
ȋ…Ȍ —†‡”–ƒ‡• •—„•–ƒ–‹ƒŽ ”‡‘˜ƒ–‹‘ ƒ† ‘†‡”‹œƒ–‹‘ ‘ˆ –Š‡ ‡š‹•–‹‰ ‡–™‘” ‘ˆ –”ƒ•‹••‹‘ ‘”
†‹•–”‹„—–‹‘Ž‹‡•ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͶƒ†‡†‹‰‘–Š‡
͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͳ͹Ǥ
”‘˜‹†‡†–Šƒ––Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘–‘ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰—†‡”•—„Ǧ…Žƒ—•‡ȋ„Ȍ•ŠƒŽŽ„‡ƒŽŽ‘™‡†
‘Ž›‹”‡Žƒ–‹‘–‘–Š‡’”‘ϐ‹–•†‡”‹˜‡†ˆ”‘Žƒ›‹‰‘ˆ•—…Š‡–™‘”‘ˆ‡™Ž‹‡•ˆ‘”–”ƒ•‹••‹‘‘”†‹•–”‹„—–‹‘Ǥ
Quantum and period of deduction:
ȋͳȌ ‹”•–ϐ‹˜‡ƒ••‡••‡–›‡ƒ”•ǦͳͲͲΨ‘ˆ•—…Š’”‘ϐ‹–•Ǥ
ȋʹȌ ‡š–ϐ‹˜‡ƒ••‡••‡–›‡ƒ”•Ǧ…ƒ•‡‘ˆ…‘’ƒ‹‡•͵ͲΨ‘ˆ•—…Š’”‘ϐ‹–•Ǥ…ƒ•‡‘ˆ‘–Š‡”ƒ••‡••‡‡•ʹͷΨ‘ˆ
•—…Š’”‘ϐ‹–•Ǥ
Š‡†‡†—…–‹‘—†‡”ȋͶȌƒ„‘˜‡•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ –‹•‘–ˆ‘”‡†„›–Š‡•’Ž‹––‹‰—’ǡ‘”–Š‡”‡…‘•–”—…–‹‘ǡ‘ˆƒ„—•‹‡••ƒŽ”‡ƒ†›‹‡š‹•–‡…‡Ǣ
ȋ„Ȍ ‹–‹•‘–ˆ‘”‡†„›–Š‡–”ƒ•ˆ‡”–‘ƒ‡™„—•‹‡••‘ˆƒ…Š‹‡”›‘”’Žƒ–ȋ‡š…‡‡†‹‰ʹͲΨȌ’”‡˜‹‘—•Ž›—•‡†
ˆ‘”ƒ›’—”’‘•‡Ǥ
ȋͷȌ‡Ǧ…‘•–”—…–‹‘‘””‡˜‹˜ƒŽ‘ˆƒ’‘™‡”‰‡‡”ƒ–‹‰’Žƒ–
ȋƒȌ —…Š—†‡”–ƒ‹‰—•–„‡‘™‡†„›ƒ†‹ƒ‘’ƒ›ǡˆ‘”‡†„‡ˆ‘”‡͵ͲǤͳͳǤʹͲͲͷ™‹–ŠƒŒ‘”‹–›‡“—‹–›
’ƒ”–‹…‹’ƒ–‹‘„›’—„Ž‹…•‡…–‘”…‘’ƒ‹‡•ˆ‘”–Š‡’—”’‘•‡‘ˆ‡ˆ‘”…‹‰–Š‡•‡…—”‹–›‹–‡”‡•–‘ˆ–Š‡Ž‡†‡”•
–‘–Š‡…‘’ƒ›‘™‹‰–Š‡’‘™‡”‰‡‡”ƒ–‹‘’Žƒ–Ǥ
ȋ„Ȍ —…Š†‹ƒ‘’ƒ›‹•‘–‹ϐ‹‡†„‡ˆ‘”‡͵ͳǤͳʹǤʹͲͲͷ„›–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•
…Žƒ—•‡ƒ†„‡‰‹•–‘‰‡‡”ƒ–‡‘”–”ƒ•‹–‘”†‹•–”‹„—–‡’‘™‡”„‡ˆ‘”‡͵ͳǤ͵ǤʹͲͳͳȋ™Ǥ‡Ǥˆͳ•–’”‹ŽǡʹͲͲͺ„›
‹ƒ…‡…–ǡʹͲͲͻǤ
Option to claim deduction ǣŠ‡ƒ••‡••‡‡ǡƒ–Š‹•‘’–‹‘ǡ…ƒ…Žƒ‹†‡†—…–‹‘‹ƒ›–‡…‘•‡…—–‹˜‡ƒ••‡••‡–
›‡ƒ”•‘—–‘ˆϐ‹ˆ–‡‡›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š‹–„‡‰‹•‘’‡”ƒ–‹‘•Ǥ

ˆ –Š‡ ƒ••‡••‡‡ ‹• ‡‰ƒ‰‡† ‹ ‹ˆ”ƒ•–”—…–—”‡ ˆƒ…‹Ž‹–› ‡–‹‘‡† ‹ ȋ„Ȍ ƒ„‘˜‡ Š‡ …ƒ …Žƒ‹ †‡†—…–‹‘ ‹ ƒ› –‡
…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•‘—–‘ˆ–™‡–››‡ƒ”•‹•–‡ƒ†‘ˆ‘—–‘ˆϐ‹ˆ–‡‡›‡ƒ”•Ǥ

Computation of Income for Deduction ǣ ‘”–Š‡’—”’‘•‡‘ˆ…‘’—–‹‰–Š‡†‡†—…–‹‘ƒ––Š‡•’‡…‹ϐ‹‡†’‡”…‡–ƒ‰‡

ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”ƒ†ƒ›•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”ǡ
–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•™‹ŽŽ„‡…‘’—–‡†ƒ•‹ˆ•—…Š„—•‹‡••™‡”‡–Š‡‘Ž›•‘—”…‡‘ˆ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡‹ƒŽŽ–Š‡
ƒ••‡••‡–›‡ƒ”•ˆ‘”™Š‹…Š–Š‡†‡†—…–‹‘ƒ––Š‡•’‡…‹ϐ‹‡†’‡”…‡–ƒ‰‡—†‡”–Š‹••‡…–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡Ǥ

– ‡ƒ•‹ˆ–Š‡Ž‘•• ‘” ƒ› ƒŽŽ‘™ƒ…‡ ȋ‡Ǥ‰Ǥǡ †‡’”‡…‹ƒ–‹‘ ƒŽŽ‘™ƒ…‡Ȍ‘ˆ•—…Š „—•‹‡•• ‹• •‡–Ǧ‘ˆˆ ƒ‰ƒ‹•– ƒ› ‘–Š‡”
‹…‘‡‹ƒ‡ƒ”Ž‹‡”ƒ••‡••‡–›‡ƒ”–‘ϐ‹†‘—––Š‡‹…‘‡‘ˆ–Š‡…—””‡–›‡ƒ”ˆ‘”†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘–Š‡
Ž‘•••‘•‡–Ǧ‘ˆˆ•ŠƒŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡…—””‡–›‡ƒ”ǯ•‹…‘‡ƒ†‘–Š‡„ƒŽƒ…‡•‘ƒ””‹˜‡†ǡ–Š‡†‡†—…–‹‘•ŠƒŽŽ
„‡…‘’—–‡†Ǥ

Š‡”‡‰‘‘†•Š‡Ž†ˆ‘”–Š‡’—”’‘•‡‘ˆ‡Ž‹‰‹„Ž‡„—•‹‡••ƒ”‡–”ƒ•ˆ‡””‡†–‘ƒ›‘–Š‡”„—•‹‡••‘ˆ–Š‡ƒ••‡••‡‡ǡ‘”˜‹…‡Ǧ
˜‡”•ƒǡ•—…Š–”ƒ•ˆ‡”‹•”‡“—‹”‡†–‘„‡†‘‡ƒ––Š‡ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š‰‘‘†•Ǥˆ•—…Š‰‘‘†•ƒ”‡‘––”ƒ•ˆ‡””‡†ƒ–
ƒ”‡–˜ƒŽ—‡‘–Š‡†ƒ–‡‘ˆ–”ƒ•ˆ‡”ǡ–Š‡–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ•—…Š‡Ž‹‰‹„Ž‡„—•‹‡•••ŠƒŽŽ„‡”‡…‘’—–‡†ƒ•‹ˆ
–”ƒ•ˆ‡”Šƒ•„‡‡ƒ†‡ƒ––Š‡ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š‰‘‘†•ǡƒ•‘–Šƒ–†ƒ–‡Ǥ
 362 Lesson 6 Ȉ EP-TL

ˆ‹–Š‡‘’‹‹‘‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”ǡ•—…Š”‡Ǧ…‘’—–ƒ–‹‘’”‡•‡–•‡š…‡’–‹‘ƒŽ†‹ˆϐ‹…—Ž–‹‡•ǡ–Š‡••‡••‹‰ˆϐ‹…‡”
ƒ›…‘’—–‡•—…Š’”‘ϐ‹–•ƒ†‰ƒ‹•‘•—…Š”‡ƒ•‘ƒ„Ž‡„ƒ•‹•ƒ•Š‡ƒ›†‡‡ϐ‹–Ǥ

Market Value in relation to any goods or services, means

ȋ‹Ȍ –Š‡’”‹…‡–Šƒ–•—…Š‰‘‘†•‘”•‡”˜‹…‡•™‘—Ž†‘”†‹ƒ”‹Ž›ˆ‡–…Š‹–Š‡‘’‡ƒ”‡–Ǣ‘”
ȋ‹‹Ȍ –Š‡ƒ”ǯ•Ž‡‰–Š’”‹…‡ƒ•†‡ϔ‹‡†‹…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•‡…–‹‘Ϳ͸ ǡ™Š‡”‡–Š‡–”ƒ•ˆ‡”‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‹•ƒ
•’‡…‹ϔ‹‡††‘‡•–‹…–”ƒ•ƒ…–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘Ϳ͸Ǥ
Š‡”‡†‡†—…–‹‘–‘ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‘”ƒ‡–‡”’”‹•‡ˆ‘”’”‘ϐ‹–ƒ†‰ƒ‹•‹•ƒŽŽ‘™‡†—†‡”–Š‹••‡…–‹‘ˆ‘”
ƒ›ƒ••‡••‡–›‡ƒ”ǡ†‡†—…–‹‘–‘–Šƒ–‡š–‡–•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ…Šƒ’–‡”—†‡”
–Š‡Š‡ƒ†‹‰†‡†—…–‹‘•‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹…‘‡•Ǥ
Š‡†‡†—…–‹‘•ŠƒŽŽ‘–‡š…‡‡†–Š‡’”‘ϐ‹–ƒ†‰ƒ‹•‘ˆ•—…Š‡Ž‹‰‹„Ž‡„—•‹‡••‘ˆ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡Ǥ
ˆ–Š‡’”‘ϐ‹–•Š‘™ˆ‘”–Š‡‡Ž‹‰‹„Ž‡„—•‹‡••—†‡”–Š‹••‡…–‹‘ǡƒ’’‡ƒ”•–‘–Š‡ƒ••‡••‹‰‘ˆϐ‹…‡”ƒ•‘”‡–Šƒ–Š‡
‘”†‹ƒ”›’”‘ϐ‹–•™Š‹…Š‹‰Š–„‡‡š’‡…–‡†–‘ƒ”‹•‡‹•—…Š‡Ž‹‰‹„Ž‡„—•‹‡••ǡ‘™‹‰–‘•‘‡…Ž‘•‡…‘‡…–‹‘™‹–Šƒ
’‡”•‘™‹–Š™Š‘„—•‹‡••–”ƒ•ƒ…–‹‘•ƒ”‡•‘ƒ””ƒ‰‡†–‘›‹‡Ž†Š‹‰Š‡”’”‘ϐ‹–ǡ–Š‡ƒ••‡••‹‰‘ˆϐ‹…‡”ƒ›–ƒ‡–Š‡
ƒ‘—–‘ˆ’”‘ϐ‹–•ƒ•ƒ›„‡”‡ƒ•‘ƒ„Ž›†‡”‹˜‡†–Š‡”‡ˆ”‘Ǥ

Š‡”‡ ƒ› —†‡”–ƒ‹‰ ‘ˆ ƒ †‹ƒ …‘’ƒ› ™Š‹…Š ‹• ‡–‹–Ž‡† –‘ †‡†—…–‹‘ —†‡” –Š‹• •‡…–‹‘ ‹• –”ƒ•ˆ‡””‡†ǡ
„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡’‡”‹‘†‘ˆ–ƒšŠ‘Ž‹†ƒ›ǡ–‘ƒ‘–Š‡”†‹ƒ…‘’ƒ›‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”ǡ
–Š‡–Š‡†‡†—…–‹‘™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ƒ•ˆ‘ŽŽ‘™•ǣ
ȋ‹Ȍ ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒ†‹••‹„Ž‡—†‡”–Š‹••‡…–‹‘–‘–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›Ȁ†‡‡”‰‡†…‘’ƒ›
ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…ŠƒƒŽ‰ƒƒ–‹‘Ȁ†‡‡”‰‡”–ƒ‡•’Žƒ…‡Ǥ
ȋ‹‹Ȍ Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›‘””‡•—Ž–‹‰…‘’ƒ›™‹ŽŽ„‡‡–‹–Ž‡†–‘…Žƒ‹†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ˆ‘”
–Š‡—‡š’‹”‡†’‡”‹‘†‘ˆ–ƒšŠ‘Ž‹†ƒ›ȋ‹…Ž—†‹‰ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‘Ȁ†‡‡”‰‡”
–ƒ‡•’Žƒ…‡ȌǤŠ‡’”‘˜‹•‹‘•‘ˆ–Š‡•‡…–‹‘•ŠƒŽŽǡƒ•ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›–‘–Š‡ƒƒŽ‰ƒƒ–‡†‘””‡•—Ž–‹‰
…‘’ƒ›ƒ•–Š‡›™‘—Ž†Šƒ˜‡ƒ’’Ž‹‡†–‘–Š‡ƒƒŽ‰ƒƒ–‹‰‘”†‡‡”‰‡†…‘’ƒ›ƒ•‹ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘
‘”†‡‡”‰‡”Šƒ†‘––ƒ‡’Žƒ…‡Ǥ
”‘˜‹†‡†–Šƒ–‹ƒ…ƒ•‡™Š‡”‡ƒ—†‡”–ƒ‹‰†‡˜‡Ž‘’•ƒ‹†—•–”‹ƒŽ’ƒ”‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻͻ‘”ƒ
•’‡…‹ƒŽ‡…‘‘‹…œ‘‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͳƒ†–”ƒ•ˆ‡”•–Š‡‘’‡”ƒ–‹‘ƒ†ƒ‹–‡ƒ…‡‘ˆ•—…Š
‹†—•–”‹ƒŽ’ƒ”‘”•—…Š•’‡…‹ƒŽ‡…‘‘‹…œ‘‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–‘ƒ‘–Š‡”—†‡”–ƒ‹‰ȋŠ‡”‡ƒˆ–‡”‹–Š‹••‡…–‹‘
”‡ˆ‡””‡†–‘ƒ•–Š‡–”ƒ•ˆ‡”‡‡—†‡”–ƒ‹‰Ȍǡ–Š‡†‡†—…–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘•—…Š–”ƒ•ˆ‡”‡‡
—†‡”–ƒ‹‰ˆ‘”–Š‡”‡ƒ‹‹‰’‡”‹‘†‹–Š‡–‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ƒ•‹ˆ–Š‡‘’‡”ƒ–‹‘ƒ†ƒ‹–‡ƒ…‡
™‡”‡‘–•‘–”ƒ•ˆ‡””‡†–‘–Š‡–”ƒ•ˆ‡”‡‡—†‡”–ƒ‹‰Ǥ

Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹–Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ›•’‡…‹ƒŽ‡…‘‘‹…‘–‹ϐ‹‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ
’”‹ŽǡʹͲͲͷ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ…Žƒ—•‡ȋ…Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͶȌǤ

‡†—…–‹‘ ‹ ”‡•’‡…– ‘ˆ ’”‘ϐ‹– ƒ† ‰ƒ‹• „› ƒ —†‡”–ƒ‹‰ ‘” ƒ ‡–‡”’”‹•‡ ‡‰ƒ‰‡† ‹
development of Special Economic Zone [Section 80-IAB]

‡…–‹‘ͺͲ’”‘˜‹†‡•ƒ†‡†—…–‹‘–‘ƒƒ••‡••‡‡™Š‹…Š†‡˜‡Ž‘’•’‡…‹ƒŽ…‘‘‹…‘‡ȋȌǡ‘–‹ϐ‹‡†‘‘”ƒˆ–‡”
ͳǤͶǤʹͲͲͷ—†‡”–Š‡’‡…‹ƒŽ…‘‘‹…‘‡•…–ǡʹͲͲͷȋƒ††‡˜‡Ž‘’‡–‘ˆ•Š‘—Ž†„‡‰‹„‡ˆ‘”‡ͳ•–’”‹ŽǡʹͲͳ͹Ȍ
‡“—ƒŽ–‘ͳͲͲΨ‘ˆ–Š‡’”‘ϐ‹–ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘•—…Š„—•‹‡••ˆ‘”ͳͲ…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ǡ‘—–‘ˆͳͷ
›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡›‡ƒ”‹™Š‹…ŠƒŠƒ•„‡‡‘–‹ϐ‹‡†„›–Š‡…‡–”ƒŽ‰‘˜‡”‡–ǡƒ–‘’–‹‘‘ˆ–Š‡ƒ••‡••‡‡Ǥ
—…Šƒ••‡••‡™‘—Ž†‘–„‡‡Ž‹‰‹„Ž‡–‘…Žƒ‹†‡†—…–‹‘—Ȁ•ͺͲǦǤ

‡†—…–‹‘ ‹ ”‡•’‡…– ‘ˆ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ˆ”‘ …‡”–ƒ‹ ‹†—•–”‹ƒŽ —†‡”–ƒ‹‰• ‘–Š‡” –Šƒ
infrastructure development undertakings [Section 80-IB]
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒƒ••‡••‡‡™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡‹…Ž—†‡•’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘
–Š‡ˆ‘ŽŽ‘™‹‰„—•‹‡••ǤŠ‡†‡†—…–‹‘‡“—ƒŽ–‘•—…Š’‡”…‡–ƒ‰‡ƒ†ˆ‘”•—…Š—„‡”‘ˆƒ••‡••‡–›‡ƒ”•ƒ•‰‹˜‡
„‡Ž‘™ǣ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 363

‹†—•–”‹ƒŽ—†‡”–ƒ‹‰•Š‘—Ž†„‡ƒ‹Ž›‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ…‘•–”—…–‹‘‘ˆ•Š‹’•‘”‹–Š‡ƒ—ˆƒ…–—”‡
‘” ’”‘…‡••‹‰ ‘ˆ ‰‘‘†• ‘” ‹ ‹‹‰Ǥ ‘•–”—…–‹‘ ‘ˆ †ƒǡ „”‹†‰‡ǡ ”‘ƒ† ‘” „—‹Ž†‹‰ …ƒ‘– „‡ …Šƒ”ƒ…–‡”‹•‡† ƒ•
ƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘‘ˆƒ”–‹…Ž‡•Ǥ
Š‡†—•–”‹ƒŽ—†‡”–ƒ‹‰…Žƒ‹‹‰†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡŠ‘™‡˜‡”‡‡†–‘ˆ—Žϐ‹ŽŽ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ͳǤ –‹•‘–ˆ‘”‡†„›•’Ž‹––‹‰—’ǡ‘”–Š‡”‡…‘•–”—…–‹‘ǡ‘ˆƒ„—•‹‡••ƒŽ”‡ƒ†›‹‡š‹•–‡…‡ǤŠ‹•…‘†‹–‹‘‹•
‘–˜‹‘Žƒ–‡†ǡ™Š‡”‡–Š‡„—•‹‡••‹•”‡Ǧ‡•–ƒ„Ž‹•Š‡†ǡ”‡…‘•–”—…–‡†‘””‡˜‹˜‡†„›–Š‡•ƒ‡ƒ••‡••‡‡ƒˆ–‡”–Š‡
„—•‹‡••‘ˆƒ›‹†—•–”‹ƒŽ—†‡”–ƒ‹‰…ƒ””‹‡†‘„›Š‹‹†‹ƒ‹•†‹•…‘–‹—‡††—‡–‘‡š–‡•‹˜‡†ƒƒ‰‡
–‘‘”†‡•–”—…–‹‘‘ˆǡƒ›„—‹Ž†‹‰ǡƒ…Š‹‡”›ǡ’Žƒ–‘”ˆ—”‹–—”‡‘™‡†„›–Š‡ƒ••‡••‡‡ȋƒ†—•‡†ˆ‘”–Š‡
’—”’‘•‡‘ˆ•—…Š„—•‹‡••Ȍƒ•ƒ†‹”‡…–”‡•—Ž–‘ˆȋ‹ȌϐŽ‘‘†ǡ–›’Š‘‘ǡŠ—””‹…ƒ‡ǡ…›…Ž‘‡ǡ‡ƒ”–Š“—ƒ‡‘”‘–Š‡”
…‘˜—Ž•‹‘‘ˆƒ–—”‡ǡ‘”ȋ‹‹Ȍ”‹‘–‘”…‹˜‹Ž†‹•–—”„ƒ…‡ǡ‘”ȋ‹‹‹Ȍƒ……‹†‡–ƒŽϐ‹”‡‘”‡š’Ž‘•‹‘ǡ‘”ȋ‹˜Ȍƒ…–‹‘„›
ƒ›‡‡›‘”ƒ…–‹‘–ƒ‡‹…‘„ƒ–‹‰ƒ‡‡›ȋ™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–ƒ†‡…Žƒ”ƒ–‹‘‘ˆ™ƒ”ȌǤ
ʹǤ –‹•‘–ˆ‘”‡†„›–Š‡–”ƒ•ˆ‡”–‘ƒ‡™„—•‹‡••‘ˆƒ…Š‹‡”›‘”’Žƒ–’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡Ǥ
‘™‡˜‡”ǡ ’Žƒ– ƒ† ƒ…Š‹‡”›ǡ ƒŽ”‡ƒ†› —•‡†ˆ‘” ƒ› ’—”’‘•‡ǡ…ƒ „‡ –”ƒ•ˆ‡””‡† –‘ –Š‡ ‡™ ‹†—•–”‹ƒŽ
—†‡”–ƒ‹‰ǡ’”‘˜‹†‡†˜ƒŽ—‡‘ˆ•—…Š’Žƒ–ƒ†ƒ…Š‹‡”›†‘‡•‘–‡š…‡‡†ʹͲΨ‘ˆ–Š‡–‘–ƒŽ˜ƒŽ—‡‘ˆ’Žƒ–
ƒ†ƒ…Š‹‡”›‘ˆ–Š‡‡™‹†—•–”‹ƒŽ—†‡”–ƒ‹‰Ǥ
 364 Lesson 6 Ȉ EP-TL

͵Ǥ –ƒ—ˆƒ…–—”‡•‘”’”‘†—…‡•ƒ›ƒ”–‹…Ž‡‘”–Š‹‰ǡ‘–„‡‹‰ƒ›ƒ”–‹…Ž‡‘”–Š‹‰•’‡…‹ϐ‹‡†‹–Š‡Ž‹•–‹–Š‡
Ž‡˜‡–Š…Š‡†—Ž‡ǡ‘”‘’‡”ƒ–‡•‘‡‘”‘”‡…‘Ž†•–‘”ƒ‰‡’Žƒ–‘”’Žƒ–•ǡ‹ƒ›’ƒ”–‘ˆ†‹ƒǤ‘™‡˜‡”ǡƒ
•ƒŽŽ•…ƒŽ‡‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‘”ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰Ž‘…ƒ–‡†‹ƒ‹†—•–”‹ƒŽŽ›„ƒ…™ƒ”†•–ƒ–‡
•’‡…‹ϐ‹‡†‹–Š‡‹‰Š–Š…Š‡†—Ž‡•ŠƒŽŽ„‡‡Ž‹‰‹„Ž‡ˆ‘”–Š‡†‡†—…–‹‘•ǡ‡˜‡‹ˆ‹–ƒ—ˆƒ…–—”‡•‘”’”‘†—…‡•
ƒ›ƒ”–‹…Ž‡Ȁ–Š‹‰™Š‹…Š‹••’‡…‹ϐ‹‡†‹–Š‡Ž‡˜‡–Š…Š‡†—Ž‡Ǥ
ͶǤ Š‡ —†‡”–ƒ‹‰ ‡’Ž‘›• –‡ ‘” ‘”‡ ™‘”‡”• ‹ ƒ ƒ—ˆƒ…–—”‹‰ ’”‘…‡•• …ƒ””‹‡† ‘ ™‹–Š –Š‡ ƒ‹† ‘ˆ
’‘™‡” ‘” ‡’Ž‘›• –™‡–› ‘” ‘”‡ ™‘”‡”• ‹ ƒ ƒ—ˆƒ…–—”‹‰ ’”‘…‡•• …ƒ””‹‡† ‘ ™‹–Š‘—– –Š‡ ƒ‹† ‘ˆ
’‘™‡”Ǥ
I. The amount of deduction to industrial undertaking shall be as follows:

Sl. Undertaking Industrial Period within which Period of deduction %age of

No. production should start (commencing from initial ’”‘ϐ‹–
assessment year) eligible
for
deduction

(1) (2) (3) (4) (5)

ȋ‹Ȍ ›‹†—•–”‹ƒŽ—†‡”–ƒ‹‰ ͳǤͶǤͳͻͻͳ–‘͵ͳǤ͵Ǥͳͻͻͷȗ ‡ …‘•‡…—–‹˜‡ ƒ••‡••‡– ͵ͲΨ

™‡†„›ƒ…‘’ƒ› ȋ‘”ƒ›ˆ—”–Š‡”‘–‹ϐ‹‡† ›‡ƒ”•
’‡”‹‘†Ȍ
™‡†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–› ™‡Ž˜‡…‘•‡…—–‹˜‡ƒ••‡••‡– ʹͷΨ
›‡ƒ”•

›‘–Š‡”ƒ••‡••‡‡ ‡…‘•‡…—–‹˜‡ƒ••‡••‡– ʹͷΨ

›‡ƒ”•

ȗ‘™‡˜‡”™Š‡”‡‹–‹•ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰„‡‹‰ƒ•ƒŽŽ•…ƒŽ‡‹†—•–”‹ƒŽ—†‡”–ƒ‹‰ǡ‹–„‡‰‹•–‘ƒ—ˆƒ…–—”‡
‘”’”‘†—…‡ƒ”–‹…Ž‡‘”–Š‹‰•‘”–‘‘’‡”ƒ–‡‹–•…‘Ž†•–‘”ƒ‰‡’Žƒ–ȋ‘–Š‡”–Šƒ–Š‘•‡•’‡…‹ϐ‹‡†„‡Ž‘™Ȍ–Š‡’‡”‹‘†•ŠƒŽŽ
„‡…‘•–”—‡†ƒ•–Š‡’‡”‹‘†„‡‰‹‹‰‘ͳǤͶǤͻͷƒ†‡†‹‰‘͵ͳǤ͵ǤʹͲͲʹǤ

II. Industrial undertaking set up in an industrial „ƒ…™ƒ”†•–ƒ–‡•’‡…‹ϐ‹‡†‹‹‰Š–Š…Š‡†—Ž‡ȗ

™‡†„›ƒ…‘’ƒ› ͳǤͶǤͳͻͻ͵to͵ͳǤ͵ǤʹͲͲʹ ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ

ȋ‡š–‡†‡† –‘͵ͳǤ͵ǤʹͲͳʹ ‡š–ϐ‹˜‡›‡ƒ”• ͵ͲΨ
‘Ž›‹ ƬȌ
™‡†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ
‡š–•‡˜‡›‡ƒ”• ʹͷΨ
›‘–Š‡”ƒ••‡••‡‡ ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ
‡š–ϐ‹˜‡›‡ƒ”• ʹͷΨ
ȗ‘™‡˜‡”‹…ƒ•‡‘ˆ‘–‹ϐ‹‡†‹†—•–”‹‡•‹–Š‡‘”–ŠǦƒ•–‡”‡‰‹‘ǡ–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘•ŠƒŽŽ„‡Š—†”‡†
’‡”…‡–‘ˆ’”‘ϐ‹–•ˆ‘”ƒ’‡”‹‘†‘ˆ–‡ƒ••‡••‡–›‡ƒ”•Ǥ
Ǥ†—•–”‹ƒŽ—†‡”–ƒ‹‰Ž‘…ƒ–‡†‹‘–‹ϐ‹‡†‹†—•–”‹ƒŽŽ›„ƒ…™ƒ”††‹•–”‹…–•‘ˆƒ–‡‰‘”›

™‡†„›ƒ…‘’ƒ› ͳǤͳͲǤͳͻͻͶ–‘͵ͳǤ͵ǤʹͲͲͶ ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ

‡š–ϐ‹˜‡›‡ƒ”• ͵ͲΨ
™‡†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ
‡š–•‡˜‡›‡ƒ”• ʹͷΨ
›‘–Š‡”ƒ••‡••‡‡ ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ
‡š–ϐ‹˜‡›‡ƒ”• ʹͷΨ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 365

Ǥ†—•–”‹ƒŽ—†‡”–ƒ‹‰Ž‘…ƒ–‡†‹‘–‹ϐ‹‡†‹†—•–”‹ƒŽŽ›„ƒ…™ƒ”††‹•–”‹…–•‘ˆƒ–‡‰‘”›

™‡†„›ƒ…‘’ƒ› ͳǤͳͲǤͳͻͻͶ–‘͵ͳǤ͵ǤʹͲͲͶ ‹”•––Š”‡‡›‡ƒ”• ͳͲͲΨ

‡š–ϐ‹˜‡›‡ƒ”• ͵ͲΨ
™‡†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‹”•––Š”‡‡›‡ƒ”• ͳͲͲΨ
‡š–‹‡›‡ƒ”• ʹͷΨ
›‘–Š‡”ƒ••‡••‡‡ ‹”•––Š”‡‡›‡ƒ”• ͳͲͲΨ
EĞdžƚĮǀĞLJĞĂƌƐ 25%
Ǥ‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽƒŽ•‘„‡ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡…ƒ•‡‘ˆ–Š‡„—•‹‡••‘ˆƒ•Š‹’̻͹Ͷά‘ˆ–Š‡’”‘ϔ‹–•ƒ†
gains derived from such ship for a period of ten consecutive assessment years including the initial assessment year.
‘™‡˜‡”ǡ–‘…Žƒ‹†‡†—…–‹‘‹–‹•”‡“—‹”‡†–Šƒ––Š‡•Š‹’Ǧ
ȋ‹Ȍ ‹•‘™‡†„›ƒ†‹ƒ…‘’ƒ›ƒ†‹•™Š‘ŽŽ›—•‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡„—•‹‡••…ƒ””‹‡†‘„›‹–Ǥ
ȋ‹‹Ȍ ™ƒ•‘–ǡ’”‡˜‹‘—•–‘–Š‡†ƒ–‡‘ˆ‹–•ƒ…“—‹•‹–‹‘„›–Š‡†‹ƒ…‘’ƒ›ǡ‘™‡†‘”—•‡†‹†‹ƒ–‡””‹–‘”‹ƒŽ
™ƒ–‡”•„›ƒ’‡”•‘”‡•‹†‡–‹†‹ƒǤ
ȋ‹‹‹Ȍ ‹•„”‘—‰Š–‹–‘—•‡„›–Š‡†‹ƒ…‘’ƒ›ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡ͳǤͶǤͳͻͻͳƒ†
‡†‹‰‘͵ͳǤ͵ǤͳͻͻͷǤ

Sl. Type of Hotel Period within Period of deduction ”‘ϐ‹–

which (commencing from eligible
No. functioning initial assessment for
should start year) deduction
ȋ‹Ȍ ‘–‡Ž Ž‘…ƒ–‡† ‹ ƒ Š‹ŽŽ› ƒ”‡ƒ ‘”ƒ”—”ƒŽƒ”‡ƒ‘”ƒ ͳǤͶǤͳͻͻͲ–‘ ‡…‘•‡…—–‹˜‡›‡ƒ”• ͷͲΨ
’Žƒ…‡‘ˆ ’‹Ž‰”‹ƒ‰‡‘”ƒ›‘–Š‡”’Žƒ…‡ ‘–‹ϐ‹‡† „› ͵ͳǤ͵ǤͳͻͻͶ
‡–”ƒŽ
‘˜‡”‡–Šƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ ‡‡†
ˆ‘” †‡˜‡Ž‘’‡–‘ˆ‹ˆ”ƒ•–”—…–—”‡ˆ‘” –‘—”‹• ‹
ƒ› ’Žƒ…‡ ƒ† ‘–Š‡” ”‡Ž‡˜ƒ–…‘•‹†‡”ƒ–‹‘Ǥ
ȋ‹‹Ȍ ‘–‡ŽŽ‘…ƒ–‡†‹ƒŠ‹ŽŽ›ƒ”‡ƒ‘”ƒ ”—”ƒŽƒ”‡ƒ‘”ƒ’Žƒ…‡ ͳǤͶǤͳͻͻ͹ –‘ ‡…‘•‡…—–‹˜‡›‡ƒ”• ͷͲΨ
‘ˆ ’‹Ž‰”‹ƒ‰‡ ‘” ƒ› ‘–Š‡” ’Žƒ…‡ ‘–‹ϐ‹‡† „› ͵ͳǤ͵ǤʹͲͲͳ
‡–”ƒŽ
‘˜‡”‡–Ǥ ‘™‡˜‡”ǡ •—…Š Š‘–‡Ž •Š‘—Ž†
‘– „‡ Ž‘…ƒ–‡† ™‹–Š‹ —‹…‹’ƒŽ —”‹•†‹…–‹‘ ‘ˆ
ƒŽ…—––ƒǡ Š‡ƒ‹ǡ ‡ŽŠ‹ ƒ† —„ƒ‹Ǥ —…Š Š‘–‡Ž
•Š‘—Ž† Š‘™‡˜‡” „‡ ƒ’’”‘˜‡† „› –Š‡ ’”‡•…”‹„‡†
ƒ—–Š‘”‹–›Ǥ
ȋ‹‹‹Ȍ ‘–‡Ž Ž‘…ƒ–‡† ‹ ƒ› ’Žƒ…‡ ‘–Š‡” –Šƒ –Š‘•‡ ͳǤͶǤͳͻͻͳ –‘ ‡…‘•‡…—–‹˜‡›‡ƒ”• ͵ͲΨ
‡–‹‘‡†‹ȋ‹Ȍ ƒ„‘˜‡ ͵ͳǤ͵Ǥͳͻͻͷ
ȋ‹˜Ȍ ‘–‡ŽŽ‘…ƒ–‡†‹ƒ›‘–Š‡”’Žƒ…‡ ‘–Š‡”–Šƒ –Š‘•‡ ͳǤͶǤͳͻͻ͹ –‘ ‡…‘•‡…—–‹˜‡›‡ƒ”• ͵ͲΨ
‡–‹‘‡† ‹ ȋ‹Ȍ ƒ„‘˜‡Ǥ ‘™‡˜‡”ǡ •—…Š Š‘–‡Ž ͵ͳǤ͵ǤʹͲͲͳ
•Š‘—Ž† ‘–„‡Ž‘…ƒ–‡†™‹–Š‹ —‹…‹’ƒŽ —”‹•†‹…–‹‘
‘ˆ ƒŽ…—––ƒǡ Š‡ƒ‹ǡ ‡ŽŠ‹ ƒ† —„ƒ‹Ǥ
‘™‡˜‡”ǡ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•‡‡†–‘„‡•ƒ–‹•ϐ‹‡†„›ƒŠ‘–‡Ž‹‘”†‡”–‘…Žƒ‹†‡†—…–‹‘ǣ
ȋ‹Ȍ Š‡„—•‹‡••‘ˆ–Š‡Š‘–‡Ž‹•‘–ˆ‘”‡†„›–Š‡•’Ž‹––‹‰—’Ǣ‘”–Š‡”‡…‘•–”—…–‹‘‘ˆƒ„—•‹‡••ƒŽ”‡ƒ†›‹
‡š‹•–‡…‡‘”„›–Š‡–”ƒ•ˆ‡”–‘ƒ‡™„—•‹‡••‘ˆƒ„—‹Ž†‹‰’”‡˜‹‘—•Ž›—•‡†ƒ•ƒŠ‘–‡Ž‘”‘ˆƒ›ƒ…Š‹‡”›
‘”’Žƒ–’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡Ǥ
ȋ‹‹Ȍ Š‡„—•‹‡••‘ˆŠ‘–‡Ž‹•‘™‡†ƒ†…ƒ””‹‡†‘„›ƒ…‘’ƒ›”‡‰‹•–‡”‡†‹†‹ƒ™‹–Šƒ’ƒ‹†—’…ƒ’‹–ƒŽ‘ˆ
‘–Ž‡••–Šƒ•ǤͷŽƒŠ•Ǥ
ȋ‹‹‹Ȍ Š‡Š‘–‡Ž‹•ˆ‘”–Š‡–‹‡„‡‹‰ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›Ǥ›Š‘–‡Žƒ’’”‘˜‡†„‡ˆ‘”‡ͳǤͶǤͻͻ
•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’”‘˜‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••‡…–‹‘Ǥ
 366 Lesson 6 Ȉ EP-TL

Ǥ  ‡†—…–‹‘ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ› …‘’ƒ› …ƒ””›‹‰ ‘ •…‹‡–‹ϔ‹… ”‡•‡ƒ”…Š ƒ† †‡˜‡Ž‘’‡– ‹• ƒ˜ƒ‹Žƒ„Ž‡ ̻
ͷͶͶά‘ˆ–Š‡’”‘ϔ‹–•ƒ†‰ƒ‹•‘ˆ•—…Š„—•‹‡••ˆ‘”ƒ’‡”‹‘†‘ˆϔ‹˜‡ƒ••‡••‡–›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡‹‹–‹ƒŽ
assessment year. However, to claim deduction under this section, it is required that such a company -
ȋ‹Ȍ ‹•”‡‰‹•–‡”‡†‹†‹ƒǤ
ȋ‹‹Ȍ Šƒ•–Š‡ƒ‹‘„Œ‡…–‘ˆ•…‹‡–‹ϐ‹…ƒ†‹†—•–”‹ƒŽ”‡•‡ƒ”…Šƒ††‡˜‡Ž‘’‡–Ǥ
ȋ‹‹‹Ȍ ‹•ˆ‘”–Š‡–‹‡„‡‹‰ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›ƒ–ƒ›–‹‡„‡ˆ‘”‡ͳǤͶǤͳͻͻͻǤ
—”–Š‡”ǡ–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘‹–Š‡…ƒ•‡‘ˆƒ›…‘’ƒ›…ƒ””›‹‰‘•…‹‡–‹ϐ‹…”‡•‡ƒ”…Šƒ††‡˜‡Ž‘’‡–•ŠƒŽŽ
„‡Š—†”‡†’‡”…‡–‘ˆ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ•—…Š„—•‹‡••ˆ‘”ƒ’‡”‹‘†‘ˆ–‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ǡ
„‡‰‹‹‰ˆ”‘–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”ǡ‹ˆ•—…Š…‘’ƒ›Ǧ
ȋ‹Ȍ ‹•”‡‰‹•–‡”‡†‹†‹ƒǢ
ȋ‹‹Ȍ Šƒ•‹–•ƒ‹‘„Œ‡…––Š‡•…‹‡–‹ϐ‹…ƒ†‹†—•–”‹ƒŽ”‡•‡ƒ”…Šƒ††‡˜‡Ž‘’‡–Ǣ
ȋ‹‹‹Ȍ ‹•ˆ‘”–Š‡–‹‡„‡‹‰ƒ’’”‘˜‡†„›–Š‡’”‡•…”‹„‡†ƒ—–Š‘”‹–›ƒ–ƒ›–‹‡ƒˆ–‡”–Š‡͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͲͲǡ
„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲ͹Ǣ
ȋ‹˜Ȍ —Žϐ‹ŽŽ••—…Š‘–Š‡”…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Ǥ†—•–”‹ƒŽ—†‡”–ƒ‹‰’”‘†—…‹‰‘””‡ϔ‹‹‰‹‡”ƒŽ‘‹Ž‹–Š‡‘”–Šƒ•–‡”‡‰‹‘‘”‹ƒ›’ƒ”–‘ˆ†‹ƒǣ
Š‡ƒ‘—–‘ˆ†‡†—…–‹‘–‘ƒ—†‡”–ƒ‹‰•ŠƒŽŽ„‡ͳͲͲΨ‘ˆ–Š‡’”‘ϐ‹–•ˆ‘”ƒ’‡”‹‘†‘ˆ•‡˜‡…‘•‡…—–‹˜‡ƒ••‡••‡–
›‡ƒ”•ǡ‹…Ž—†‹‰–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”ǡ‹ˆ•—…Š—†‡”–ƒ‹‰ˆ—Žϐ‹Ž•ƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ȋ‹Ȍ ‹•Ž‘…ƒ–‡†‹‘”–ŠǦƒ•–‡”‡‰‹‘ƒ†Šƒ•„‡‰—‘”„‡‰‹•…‘‡”…‹ƒŽ’”‘†—…–‹‘‘ˆ‹‡”ƒŽ‘‹Ž„‡ˆ‘”‡
–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻ͹Ǣ
ȋ‹‹Ȍ ‹•Ž‘…ƒ–‡†‹ƒ›’ƒ”–‘ˆ†‹ƒƒ†Šƒ•„‡‰—‘”„‡‰‹•…‘‡”…‹ƒŽ’”‘†—…–‹‘‘ˆ‹‡”ƒŽ‘‹Ž‘‘”ƒˆ–‡”–Š‡
ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻ͹Ǣ
 ”‘˜‹†‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…Žƒ—•‡•ŠƒŽŽ‘–ƒ’’Ž›–‘„Ž‘…•Ž‹…‡•‡†—†‡”ƒ…‘–”ƒ…–ƒ™ƒ”†‡†
ƒˆ–‡” –Š‡ ͵ͳ•– †ƒ› ‘ˆ ƒ”…Šǡ ʹͲͳͳ —†‡” –Š‡ ‡™ š’Ž‘”ƒ–‹‘ ‹…‡…‹‰ ‘Ž‹…› ƒ‘—…‡† „› –Š‡

‘˜‡”‡–‘ˆ†‹ƒ˜‹†‡‡•‘Ž—–‹‘‘ǤǦͳͻͲͳͺȀʹʹȀͻͷǦ
ǤǤǡ†ƒ–‡†–Š‡ͳͲ–Š ‡„”—ƒ”›ǡͳͻͻͻ‘”
‹’—”•—ƒ…‡‘ˆƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‘”„›–Š‡‡–”ƒŽ‘”ƒ–ƒ–‡
‘˜‡”‡–‹ƒ›‘–Š‡”
ƒ‡”Ǣ
ȋ‹‹‹Ȍ ‹•‡‰ƒ‰‡†‹”‡ϐ‹‹‰‘ˆ‹‡”ƒŽ‘‹Žƒ†„‡‰‹••—…Š”‡ϐ‹‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡͳͻͻͺ„—–
‘–Žƒ–‡”–Šƒ͵ͳ•–†ƒ›‘ˆƒ”…ŠʹͲͳʹǤȋ™Ǥ‡ǤˆǤ••‡••‡–›‡ƒ”ʹͲͲͳǦͲʹȌȋ–Š‡™‘”†•Dz„—–‘–Žƒ–‡”–Šƒ–Š‡
͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͳʹdz•ŠƒŽŽ„‡‹•‡”–‡†™Ǥ‡ǤˆǤͳ•–’”‹ŽʹͲͲͻȌǢ
ȋ‹˜Ȍ ‹•‡‰ƒ‰‡†‹…‘‡”…‹ƒŽ’”‘†—…–‹‘‘ˆƒ–—”ƒŽ‰ƒ•‹„Ž‘…•Ž‹…‡•‡†—†‡”–Š‡‘—†‘ˆ„‹††‹‰ˆ‘”
ƒ™ƒ”†‘ˆ‡š’Ž‘”ƒ–‹‘…‘–”ƒ…–•ȋŠ‡”‡ƒˆ–‡””‡ˆ‡””‡†–‘ƒ•DzǦdzȌ—†‡”–Š‡‡™š’Ž‘”ƒ–‹‘‹…‡…‹‰
‘Ž‹…›ƒ‘—…‡†„›–Š‡
‘˜‡”‡–‘ˆ†‹ƒ˜‹†‡‡•‘Ž—–‹‘‘ǤǦͳͻͲͳͺȀʹʹȀͻͷǦ
ǤǤǡ†ƒ–‡†ͳͲ–Š
‡„”—ƒ”›ǡͳͻͻͻƒ†„‡‰‹•…‘‡”…‹ƒŽ’”‘†—…–‹‘‘ˆƒ–—”ƒŽ‰ƒ•‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͻǤ
ȋ˜Ȍ ‹•‡‰ƒ‰‡†‹…‘‡”…‹ƒŽ’”‘†—…–‹‘‘ˆƒ–—”ƒŽ‰ƒ•‹„Ž‘…•Ž‹…‡•‡†—†‡”–Š‡”‘—†‹ˆ„‹††‹‰ˆ‘”
ƒ™ƒ”†‘ˆ‡š’Ž‘”ƒ–‹‘…‘–”ƒ…–•ˆ‘”ƒ‘Ž‡†‡–Šƒ‡„Ž‘…•ƒ†„‡‰‹•…‘‡”…‹ƒŽ’”‘†—…–‹‘‘ˆƒ–—”ƒŽ
‰ƒ•‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽʹͲͲͻǢ
Explanationǣ ŽŽ „Ž‘…• Ž‹…‡•‡† —†‡” ƒ •‹‰Ž‡ …‘–”ƒ…–ǡ ™Š‹…Š Šƒ• „‡‡ ƒ™ƒ”†‡† —†‡” –Š‡ ‡™ š’Ž‘”ƒ–‹‘
‹…‡…‹‰ ‘Ž‹…› ƒ‘—…‡† „› –Š‡
‘˜‡”‡– ‘ˆ †‹ƒ ˜‹†‡ ‡•‘Ž—–‹‘ ‘Ǥ ǦͳͻͲͳͺȀʹʹȀͻͷǦ
ǤǤǡ †ƒ–‡†
ͳͲ–Š ‡„”—ƒ”›ǡͳͻͻͻ‘”Šƒ•„‡‡ƒ™ƒ”†‡†‹’—”•—ƒ…‡‘ˆƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‘”Šƒ•„‡‡ƒ™ƒ”†‡†
„›‡–”ƒŽ‘”ƒ–ƒ–‡
‘˜‡”‡–‹ƒ›‘–Š‡”ƒ‡”ǡ•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ•‹‰Ž‡—†‡”–ƒ‹‰Ǥ
Ǥ‡†—…–‹‘‘ˆͷͶͶά‘ˆ–Š‡’”‘ϔ‹–•‘ˆƒ—†‡”–ƒ‹‰‡‰ƒ‰‡†‹†‡˜‡Ž‘’‹‰ƒ†„—‹Ž†‹‰Š‘—•‹‰’”‘Œ‡…–•
ƒ’’”‘˜‡†„‡ˆ‘”‡–Š‡͹ͷ•–†ƒ›‘ˆƒ”…Šǡ͸ͶͶ;„›ƒŽ‘…ƒŽƒ—–Š‘”‹–›’”‘˜‹†‡†–Šƒ–ǣ
ȋƒȌ •—…Š—†‡”–ƒ‹‰Šƒ•…‘‡…‡†‘”…‘‡…‡•†‡˜‡Ž‘’‡–ƒ†…‘•–”—…–‹‘‘ˆ–Š‡Š‘—•‹‰’”‘Œ‡…–‘
‘”ƒˆ–‡”ͳ•–†ƒ›‘ˆ…–‘„‡”ǡͳͻͻͺƒ†…‘’Ž‡–‡••—…Š…‘•–”—…–‹‘Ǧ
ȋ‹Ȍ ‹…ƒ•‡™Š‡”‡ƒŠ‘—•‹‰’”‘Œ‡…–Šƒ•„‡‡ƒ’’”‘˜‡†„›–Š‡Ž‘…ƒŽƒ—–Š‘”‹–›„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡ
ʹͲͲͶǡ‘‘”„‡ˆ‘”‡͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͲͺǢ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 367

ȋ‹‹Ȍ ‹ƒ…ƒ•‡™Š‡”‡ƒŠ‘—•‹‰’”‘Œ‡…–Šƒ•„‡‡‘”ǡ‹•ƒ’’”‘˜‡†„›–Š‡Ž‘…ƒŽƒ—–Š‘”‹–›‘‘”ƒˆ–‡”–Š‡ͳ•–
†ƒ›‘ˆ’”‹ŽǡʹͲͲͶ„—–‘–Žƒ–‡”–Šƒ–Š‡͵ͳ•–ƒ”…ŠʹͲͲͷǡ™‹–Š‹ˆ‘—”›‡ƒ”•ˆ”‘–Š‡‡†‘ˆϐ‹ƒ…‹ƒŽ
›‡ƒ”‹™Š‹…Š–Š‡Š‘—•‹‰’”‘Œ‡…–‹•ƒ’’”‘˜‡†„›–Š‡Ž‘…ƒŽƒ—–Š‘”‹–›Ǣ
ȋ‹‹‹Ȍ ƒ…ƒ•‡™Š‡”‡ƒŠ‘—•‹‰’”‘Œ‡…–Šƒ•„‡‡ƒ’’”‘˜‡†„›–Š‡Ž‘…ƒŽƒ—–Š‘”‹–›‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›
‘ˆ’”‹ŽǡʹͲͲͷǡ™‹–Š‹ϐ‹˜‡›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡Š‘—•‹‰’”‘Œ‡…–‹•
ƒ’’”‘˜‡†„›–Š‡Ž‘…ƒŽƒ—–Š‘”‹–›Ǣ
ȋ„Ȍ –Š‡’”‘Œ‡…–‹•‘ˆ–Š‡•‹œ‡‘ˆƒ’Ž‘–‘ˆŽƒ†™Š‹…ŠŠƒ•‹‹—ƒ”‡ƒ‘ˆ‘‡ƒ…”‡Ǣ
ȋ…Ȍ –Š‡”‡•‹†‡–‹ƒŽ—‹–Šƒ•ƒƒš‹—„—‹Ž–Ǧ—’ƒ”‡ƒ‘ˆ‘‡–Š‘—•ƒ†•“—ƒ”‡ˆ‡‡–™Š‡”‡•—…Š”‡•‹†‡–‹ƒŽ—‹–
‹••‹–—ƒ–‡†™‹–Š‹–Š‡…‹–‹‡•‘ˆ‡ŽŠ‹‘”—„ƒ‹‘”™‹–Š‹–™‡–›Ǧϐ‹˜‡‹Ž‘‡–‡”•ˆ”‘–Š‡—‹…‹’ƒŽŽ‹‹–•
‘ˆ–Š‡•‡…‹–‹‡•ƒ†‘‡–Š‘—•ƒ†ƒ†ϐ‹˜‡Š—†”‡†•“—ƒ”‡ˆ‡‡–ƒ–ƒ›‘–Š‡”’Žƒ…‡Ǣƒ†
ȋ†Ȍ –Š‡„—‹Ž†Ǧ—’ƒ”‡ƒ‘ˆ–Š‡•Š‘’•ƒ†‘–Š‡”…‘‡”…‹ƒŽ‡•–ƒ„Ž‹•Š‡–•‹…Ž—†‡†‹–Š‡Š‘—•‹‰’”‘Œ‡…–†‘‡•
‘– ‡š…‡‡† –Š”‡‡ ‘ˆ –Š‡ ƒ‰‰”‡‰ƒ–‡ „—‹Ž–Ǧ—’ ƒ”‡ƒ ‘ˆ –Š‡ Š‘—•‹‰ ’”‘Œ‡…– ‘” ϐ‹˜‡ –Š‘—•ƒ† •“—ƒ”‡ ˆ‡‡–
™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ
ȋ‡Ȍ ‘–‘”‡–Šƒ‘‡”‡•‹†‡–‹ƒŽ—‹–‹–Š‡Š‘—•‹‰’”‘Œ‡…–‹•ƒŽŽ‘––‡†–‘ƒ›’‡”•‘‘–„‡‹‰ƒ‹†‹˜‹†—ƒŽǢ
ƒ†
ȋˆȌ ‹ƒ…ƒ•‡™Š‡”‡ƒ”‡•‹†‡–‹ƒŽ—‹–‹–Š‡Š‘—•‹‰’”‘Œ‡…–‹•ƒŽŽ‘––‡†–‘ƒ’‡”•‘„‡‹‰ƒ‹†‹˜‹†—ƒŽǡ‘‘–Š‡”
”‡•‹†‡–‹ƒŽ—‹–‹•—…ŠŠ‘—•‹‰’”‘Œ‡…–‹•ƒŽŽ‘––‡†–‘ƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•ǡ
ȋ‹Ȍ –Š‡•’‘—•‡‘”–Š‡‹‘”…Š‹Ž†”‡‘ˆ•—…Š‹†‹˜‹†—ƒŽǡ
ȋ‹‹Ȍ –Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›‹™Š‹…Š•—…Š‹†‹˜‹†—ƒŽ‹•–Š‡ƒ”–ƒǡ
ȋ‹‹‹Ȍ ƒ›’‡”•‘”‡’”‡•‡–‹‰•—…Š‹†‹˜‹†—ƒŽǡ–Š‡•’‘—•‡‘”–Š‡‹‘”…Š‹Ž†”‡‘ˆ•—…Š‹†‹˜‹†—ƒŽ‘”–Š‡
‹†——†‹˜‹†‡†ˆƒ‹Ž›‹™Š‹…Š•—…Š‹†‹˜‹†—ƒŽ‹•–Š‡ƒ”–ƒǤ
Ǥ—†”‡†’‡”…‡–‘ˆ–Š‡’”‘ϔ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†„›ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰ˆ”‘–Š‡„—•‹‡••‘ˆ•‡––‹‰
—’ƒ†‘’‡”ƒ–‹‰ƒ…‘Ž†…Šƒ‹ˆƒ…‹Ž‹–›ˆ‘”ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡•ŠƒŽŽ„‡†‡†—…–‹„Ž‡ǣ

Industrial Undertaking Period within which production Period of deduction Ψƒ‰‡‘ˆ’”‘ϐ‹–

should start (commencing from eligible for
initial assessment year) deduction
‘”ƒ…‘’ƒ› ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ

‡š–ϐ‹˜‡›‡ƒ”• ͵ͲΨ

‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–› ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ

ͳǤͶǤͳͻͻͻ–‘͵ͳǤ͵ǤʹͲͲ͵
‡š–•‡˜‡›‡ƒ”• ʹͷΨ

›‘–Š‡”ƒ••‡••‡‡ ‹”•–ϐ‹˜‡›‡ƒ”• ͳͲͲΨ

‡š–ϐ‹˜‡›‡ƒ”• ʹͷΨ

Š‡”‡ƒ›—†‡”–ƒ‹‰‘ˆƒ†‹ƒ…‘’ƒ›™Š‹…Š‹•‡–‹–Ž‡†–‘–Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•–”ƒ•ˆ‡””‡†ǡ
„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡’‡”‹‘†•’‡…‹ϐ‹‡†‹–Š‹••‡…–‹‘ǡ–‘ƒ‘–Š‡”†‹ƒ…‘’ƒ›‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘‘”
†‡‡”‰‡”Ǧ
ȋƒȌ ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒ†‹••‹„Ž‡—†‡”–Š‹••‡…–‹‘–‘–Š‡ƒƒŽ‰ƒƒ–‹‰‘”–Š‡†‡‡”‰‡†…‘’ƒ›ˆ‘”–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‘‘”–Š‡†‡‡”‰‡”–ƒ‡•’Žƒ…‡Ǣƒ†
ȋƒȌ –Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽƒ•ˆƒ”ƒ•ƒ›„‡ƒ’’Ž›–‘–Š‡ƒƒŽ‰ƒƒ–‡†‘”–Š‡”‡•—Ž–‹‰…‘’ƒ›ƒ•
–Š‡›™‘—Ž†Šƒ˜‡ƒ’’Ž‹‡†–‘–Š‡ƒƒŽ‰ƒƒ–‹‰‘”–Š‡†‡‡”‰‡†…‘’ƒ›‹ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”
Šƒ†‘––ƒ‡’Žƒ…‡Ǥ
—”–Š‡”ǡ–Š‡ƒ‘—–‘ˆ†‡†—…–‹‘‹ƒ…ƒ•‡‘ˆƒ—†‡”–ƒ‹‰†‡”‹˜‹‰’”‘ϐ‹–ˆ”‘–Š‡‹–‡‰”ƒ–‡†„—•‹‡••‘ˆŠƒ†Ž‹‰ǡ
•–‘”ƒ‰‡ ƒ† –”ƒ•’‘”–ƒ–‹‘ ‘ˆ ˆ‘‘†‰”ƒ‹•ǡ •ŠƒŽŽ „‡ Š—†”‡† ’‡” …‡– ‘ˆ –Š‡ ’”‘ϐ‹–• ƒ† ‰ƒ‹• †‡”‹˜‡† ˆ”‘ •—…Š
—†‡”–ƒ‹‰ˆ‘”ϐ‹˜‡ƒ••‡••‡–›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”ƒ†–Š‡”‡ƒˆ–‡”ǡ–™‡–›Ǧϐ‹˜‡’‡”
 368 Lesson 6 Ȉ EP-TL

…‡–ȋ‘”–Š‹”–›’‡”…‡–ǡ™Š‡”‡–Š‡ƒ••‡••‡‡‹•ƒ…‘’ƒ›Ȍ‘ˆ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘–Š‡‘’‡”ƒ–‹‘‘ˆ•—…Š
„—•‹‡•• ‹ ƒ ƒ‡” –Šƒ– –Š‡ –‘–ƒŽ ’‡”‹‘† ‘ˆ †‡†—…–‹‘ †‘‡• ‘– ‡š…‡‡† –‡ …‘•‡…—–‹˜‡ ƒ••‡••‡– ›‡ƒ”• ƒ†
•—„Œ‡…––‘ˆ—Žϐ‹ŽŽ‡–‘ˆ–Š‡…‘†‹–‹‘–Šƒ–‹–„‡‰‹•–‘‘’‡”ƒ–‡•—…Š„—•‹‡••‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͳǤ
 –Š‡ …ƒ•‡ ‘ˆ ƒ —†‡”–ƒ‹‰ ‡‰ƒ‰‡† ‹ –Š‡ ‹–‡‰”ƒ–‡† „—•‹‡•• ‘ˆ Šƒ†Ž‹‰ǡ •–‘”ƒ‰‡ ƒ† –”ƒ•’‘”–ƒ–‹‘ ‘ˆ
ˆ‘‘†‰”ƒ‹•ǡ‡ƒ•–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡—†‡”–ƒ‹‰„‡‰‹••—…Š„—•‹‡••Ǥ
VIII. Deduction in the case of any multiplex theatre
‹ˆ–›’‡”…‡–‘ˆ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹• †‡”‹˜‡†ǡˆ”‘ –Š‡„—•‹‡••‘ˆ„—‹Ž†‹‰ǡ ‘™‹‰ ƒ†‘’‡”ƒ–‹‰ ƒ—Ž–‹’Ž‡š
–Š‡ƒ–”‡ǡˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡…‘•‡…—–‹˜‡›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”‹ƒ›’Žƒ…‡Ǥ—Ž–‹’Ž‡š
–Š‡ƒ–”‡•Š‘—Ž†‘–„‡Ž‘…ƒ–‡†ƒ–ƒ’Žƒ…‡™‹–Š‹–Š‡—‹…‹’ƒŽŒ—”‹•†‹…–‹‘‘ˆ‘Žƒ–ƒǡŠ‡ƒ‹ǡ‡ŽŠ‹‘”—„ƒ‹Ǥ
—…Š—Ž–‹’Ž‡š–Š‡ƒ–”‡•Š‘—Ž†„‡…‘•–”—…–‡†ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲʹ
ƒ†‡†‹‰‘–Š‡͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͲͷǤŠ‡„—•‹‡•••Š‘—Ž†‘–„‡ˆ‘”‡†„›•’Ž‹––‹‰—’‘”–Š‡”‡…‘•–”—…–‹‘ǡ
‘ˆƒ„—•‹‡••‘”ƒ›’Žƒ–ƒ†ƒ…Š‹‡”›’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡ǡƒ†ƒ••‡••‡‡•Š‘—Ž†ˆ—”‹•ŠƒŽ‘‰™‹–Š
–Š‡”‡–—”‘ˆ‹…‘‡ǡ–Š‡”‡’‘”–‘ˆƒƒ—†‹–‹ ‘”‘ǤͳͲǤ
Ǥ‡†—…–‹‘‹–Š‡…ƒ•‡‘ˆƒ›…‘˜‡–‹‘…‡–”‡ǣ
‹ˆ–›’‡”…‡–‘ˆ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ǡ„›–Š‡ƒ••‡••‡‡ˆ”‘–Š‡„—•‹‡••‘ˆ„—‹Ž†‹‰ǡ‘™‹‰ƒ†‘’‡”ƒ–‹‰
ƒ …‘˜‡–‹‘ …‡–”‡ǡ ˆ‘” ƒ ’‡”‹‘† ‘ˆ ϐ‹˜‡ …‘•‡…—–‹˜‡ ›‡ƒ”• „‡‰‹‹‰ ˆ‘” –Š‡ ‹‹–‹ƒŽ ƒ••‡••‡– ›‡ƒ”Ǥ —…Š
…‘˜‡–‹‘…‡–”‡‹•…‘•–”—…–‡†ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲʹƒ†‡†‹‰
‘ –Š‡ ͵ͳ•– †ƒ› ‘ˆ ƒ”…Šǡ ʹͲͲͷǤ Š‡ „—•‹‡•• •Š‘—Ž† ‘– „‡ ˆ‘”‡† „› •’Ž‹––‹‰ —’ ‘” –Š‡ ”‡Ǧ…‘•–”—…–‹‘ ‘ˆ ƒ
„—•‹‡••‘”ƒ›’Žƒ–ƒ†ƒ…Š‹‡”›’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡Ǥ
ǤͷͶͶά†‡†—…–‹‘‹…ƒ•‡‘ˆƒ—†‡”–ƒ‹‰†‡”‹˜‹‰’”‘ϔ‹–•ˆ”‘–Š‡„—•‹‡••‘ˆ‘’‡”ƒ–‹‰ƒ†ƒ‹–ƒ‹‹‰
ƒŠ‘•’‹–ƒŽ‹ƒ”—”ƒŽƒ”‡ƒˆ‘”ƒ’‡”‹‘†‘ˆϔ‹˜‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡‹‹–‹ƒŽƒ••‡••‡–
year if (w.e.f. A.Y. 2005-06) -
ȋ‹Ȍ •—…ŠŠ‘•’‹–ƒŽ‹•…‘•–”—…–‡†ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†ˆ”‘ͳǤͳͲǤʹͲͲͶ–‘͵ͳǤ͵ǤʹͲͲͺǤ
ȋ‹‹Ȍ –Š‡Š‘•’‹–ƒŽŠƒ•ƒ–Ž‡ƒ•–‘‡Š—†”‡†„‡†•ˆ‘”’ƒ–‹‡–•Ǥ
ȋ‹‹‹Ȍ …‘•–”—…–‹‘ ‘ˆ Š‘•’‹–ƒŽ ‹• ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ”‡‰—Žƒ–‹‘•ǡ ˆ‘” –Š‡ –‹‡ „‡‹‰ ‹ ˆ‘”…‡ǡ ‘ˆ –Š‡ Ž‘…ƒŽ
ƒ—–Š‘”‹–›Ǣƒ†
ȋ‹˜Ȍ –Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡–Š‡”‡’‘”–‘ˆƒ—†‹–‹•—…Šˆ‘”ƒ†…‘–ƒ‹‹‰
•—…Š’ƒ”–‹…—Žƒ”•ƒ•ƒ›„‡’”‡•…”‹„‡†ƒ††—Ž›•‹‰‡†ƒ†˜‡”‹ϐ‹‡†„›ƒ…Šƒ”–‡”‡†ƒ……‘—–ƒ––Šƒ––Š‡
†‡†—…–‹‘Šƒ•„‡‡…‘””‡…–Ž›…Žƒ‹‡†Ǥ
ǤŠ‡ƒ‘—–‘ˆ†‡†—…–‹‘‹–Š‡…ƒ•‡‘ˆƒ—†‡”–ƒ‹‰†‡”‹˜‹‰’”‘ϔ‹–•ˆ”‘–Š‡„—•‹‡••‘ˆ‘’‡”ƒ–‹‰ƒ†
maintaining a hospital located anywhere in India, other than the excluded area, shall be hundred per cent of
–Š‡’”‘ϔ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘•—…Š„—•‹‡••ˆ‘”ƒ’‡”‹‘†‘ˆϔ‹˜‡…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ǡ„‡‰‹‹‰
with the initial assessment year, if -
ȋ‹Ȍ –Š‡Š‘•’‹–ƒŽ‹•…‘•–”—…–‡†ƒ†Šƒ••–ƒ”–‡†‘”•–ƒ”–•ˆ—…–‹‘‹‰ƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰
‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲͺƒ†‡†‹‰‘–Š‡͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͳ͵Ǣ
ȋ‹‹Ȍ –Š‡Š‘•’‹–ƒŽŠƒ•ƒ–Ž‡ƒ•–‘‡Š—†”‡†„‡†•ˆ‘”’ƒ–‹‡–•Ǣ
ȋ‹‹‹Ȍ –Š‡…‘•–”—…–‹‘‘ˆ–Š‡Š‘•’‹–ƒŽ‹•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”‡‰—Žƒ–‹‘•‘”„›‡ǦŽƒ™•‘ˆ–Š‡Ž‘…ƒŽƒ—–Š‘”‹–›Ǣƒ†
ȋ‹˜Ȍ –Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡ǡƒ”‡’‘”–‘ˆƒ—†‹–‹•—…Šˆ‘”ƒ†…‘–ƒ‹‹‰
•—…Š’ƒ”–‹…—Žƒ”•ǡƒ•ƒ›„‡’”‡•…”‹„‡†ǡƒ††—Ž›•‹‰‡†ƒ†˜‡”‹ˆ‹‡†„›ƒƒ……‘—–ƒ–ǡƒ•†‡ˆ‹‡†‹
–Š‡š’Žƒƒ–‹‘–‘•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ʹͺͺǡ…‡”–‹ˆ›‹‰–Šƒ––Š‡†‡†—…–‹‘Šƒ•„‡‡…‘””‡…–Ž›…Žƒ‹‡†Ǥ
Illustration
ͳǤ‡†—…–‹‘—†‡”‡…–‹‘ͺͲǦ‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ǣ
ȋƒȌ Šƒ”‹–ƒ„Ž‡”—•–
ȋ„Ȍ ‘—”ƒ†”ƒ˜‡Ž•
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 369

ȋ…Ȍ †—•–”‹ƒŽ‡•‡ƒ”…Š
ȋ†Ȍ ‘˜‡–‹‘‡–”‡
ʹǤŠ‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‰‡–•ͷͲΨ†‡†—…–‹‘‘–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘‹–•„—•‹‡••ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡
…‘•‡…—–‹˜‡›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”‹ƒ›’Žƒ…‡ǫ
ȋƒȌ —Ž–‹’Ž‡šŠ‡ƒ–”‡
ȋ„Ȍ ‘˜‡–‹‘‡–”‡
ȋ…Ȍ ‘•’‹–ƒŽ
ȋ†Ȍ Šƒ”‹–ƒ„Ž‡”—•–
Deduction in respect of eligible Start-Up [Section 80IAC]

‡…–‹‘ͺͲ’”‘˜‹†‡•ƒ†‡†—…–‹‘–‘ƒƒ••‡••‡‡ǡ„‡‹‰ƒ‡Ž‹‰‹„Ž‡•–ƒ”–Ǧ—’ǡ™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡‹…Ž—†‡•ƒ›
’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘‡Ž‹‰‹„Ž‡—•‹‡••‡“—ƒŽ–‘ͳͲͲΨ‘ˆ–Š‡’”‘ϐ‹–ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘•—…Š„—•‹‡••
ˆ‘”͵…‘•‡…—–‹˜‡ƒ••‡••‡–›‡ƒ”•ǡƒ––Š‡‘’–‹‘‘ˆ–Š‡ƒ••‡••‡‡‘—–‘ˆ–‡›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š
–Š‡‡Ž‹‰‹„Ž‡•–ƒ”–Ǧ—’‹•‹…‘”’‘”ƒ–‡†ǤŠ‡Ž‹‰‹„Ž‡–ƒ”–Ǧ—’•Š‘—Ž†‘–„‡ˆ‘”‡†„›•’Ž‹––‹‰—’ǡ‘”–Š‡”‡…‘•–”—…–‹‘ǡ
‘ˆƒ„—•‹‡••ƒŽ”‡ƒ†›‹‡š‹•–‡…‡ƒ†•Š‘—Ž†‘–ˆ‘”‡†„›–Š‡–”ƒ•ˆ‡”–‘ƒ‡™„—•‹‡••‘ˆƒ…Š‹‡”›‘”’Žƒ–
’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡Ǥ

‘™‡˜‡”ƒ›ƒ…Š‹‡”›‘”’Žƒ–„‡‹‰’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡‹•–”ƒ•ˆ‡””‡†–‘ƒ‡™„—•‹‡••ƒ†–Š‡
–‘–ƒŽ˜ƒŽ—‡‘ˆ–Š‡ƒ…Š‹‡”›‘”’Žƒ–‘”’ƒ”–•‘–”ƒ•ˆ‡””‡††‘‡•‘–‡š…‡‡†–™‡–›’‡”…‡–‘ˆ–Š‡–‘–ƒŽ˜ƒŽ—‡‘ˆ–Š‡
ƒ…Š‹‡”›‘”’Žƒ–—•‡†‹–Š‡‡™„—•‹‡••Ǥ
ȋ‹Ȍ Dz‡Ž‹‰‹„Ž‡„—•‹‡••dz‡ƒ•ƒ„—•‹‡••…ƒ””‹‡†‘—–„›ƒ‡Ž‹‰‹„Ž‡•–ƒ”–Ǧ—’‡‰ƒ‰‡†‹‹‘˜ƒ–‹‘ǡ†‡˜‡Ž‘’‡–
‘”‹’”‘˜‡‡–‘ˆ’”‘†—…–•‘”’”‘…‡••‡•‘”•‡”˜‹…‡•‘”ƒ•…ƒŽƒ„Ž‡„—•‹‡••‘†‡Ž™‹–ŠƒŠ‹‰Š’‘–‡–‹ƒŽ‘ˆ
‡’Ž‘›‡–‰‡‡”ƒ–‹‘‘”™‡ƒŽ–Š…”‡ƒ–‹‘Ǥ
ȋ‹‹Ȍ Dz‡Ž‹‰‹„Ž‡•–ƒ”–Ǧ—’dz‡ƒ•ƒ…‘’ƒ›‘”ƒŽ‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’ȋȌ‡‰ƒ‰‡†‹‡Ž‹‰‹„Ž‡„—•‹‡••
™Š‹…Šˆ—Žϐ‹Ž•–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣȂ
ȋƒȌ ‹–‹•‹…‘”’‘”ƒ–‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳ͸„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǤ
ȋ„Ȍ –Š‡–‘–ƒŽ–—”‘˜‡”‘ˆ‹–•„—•‹‡••†‘‡•‘–‡š…‡‡†—†”‡†…”‘”‡”—’‡‡•‹ƒ›‘ˆ–Š‡
’”‡˜‹‘—•›‡ƒ”•„‡‰‹‹‰ˆ”‘–Š‡›‡ƒ”‹™Š‹…Š‹–‹•‹…‘”’‘”ƒ–‡†Ǥ
ȋ…Ȍ ‹–Š‘Ž†•ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ‡Ž‹‰‹„Ž‡„—•‹‡••ˆ”‘–Š‡–‡”Ǧ‹‹•–‡”‹ƒŽ‘ƒ”†‘ˆ‡”–‹ϐ‹…ƒ–‹‘Ǥ
‡†—…–‹‘•‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘‘—•‹‰”‘Œ‡…–•ȏ‡…–‹‘ͺͲȐ
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒƒ••‡••‡‡™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡‹…Ž—†‡•ƒ›’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†
ˆ”‘–Š‡„—•‹‡••‘ˆ†‡˜‡Ž‘’‹‰ƒ†„—‹Ž†‹‰Š‘—•‹‰’”‘Œ‡…–•ǡ•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ǡ‘ˆƒƒ‘—–
‡“—ƒŽ–‘ͳͲͲΨ‘ˆ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†ˆ”‘•—…Š„—•‹‡••Ǥ
Š‘—•‹‰’”‘Œ‡…–•ŠƒŽŽ„‡ƒ’”‘Œ‡…–™Š‹…Šˆ—Žϐ‹Ž•–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ƒȌ –Š‡’”‘Œ‡…–‹•ƒ’’”‘˜‡†„›–Š‡…‘’‡–‡–ƒ—–Š‘”‹–›ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ —‡ǡʹͲͳ͸ǡ„—–‘‘”„‡ˆ‘”‡–Š‡
͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲʹʹȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͳȐǢ
„Ȍ –Š‡’”‘Œ‡…–‹•…‘’Ž‡–‡†™‹–Š‹ƒ’‡”‹‘†‘ˆͷ›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆƒ’’”‘˜ƒŽ„›–Š‡…‘’‡–‡–ƒ—–Š‘”‹–›Ǣ
…Ȍ –Š‡…ƒ”’‡–ƒ”‡ƒ‘ˆ–Š‡•Š‘’•ƒ†‘–Š‡”…‘‡”…‹ƒŽ‡•–ƒ„Ž‹•Š‡–•‹…Ž—†‡†‹–Š‡Š‘—•‹‰’”‘Œ‡…–†‘‡•
‘–‡š…‡‡†͵Ψ‘ˆ–Š‡ƒ‰‰”‡‰ƒ–‡…ƒ”’‡–ƒ”‡ƒǢ
†Ȍ –Š‡’”‘Œ‡…–‹•‘ƒ’Ž‘–‘ˆŽƒ†‡ƒ•—”‹‰‘–Ž‡••–ŠƒͳͲͲͲ•“—ƒ”‡‡–”‡•ǡ™Š‡”‡–Š‡’”‘Œ‡…–‹•Ž‘…ƒ–‡†
™‹–Š‹–Š‡…‹–‹‡•‘ˆŠ‡ƒ‹ǡ‡ŽŠ‹ǡ‘Žƒ–ƒ‘”—„ƒ‹‘”™‹–Š‹–Š‡†‹•–ƒ…‡ǡ‡ƒ•—”‡†ƒ‡”‹ƒŽŽ›ǡ‘ˆʹͷ
‹Ž‘‡–”‡•ˆ”‘–Š‡—‹…‹’ƒŽŽ‹‹–•‘ˆ–Š‡•‡…‹–‹‡•‘”ʹͲͲͲ‡–”‡•ǡ™Š‡”‡–Š‡’”‘Œ‡…–‹•Ž‘…ƒ–‡†‹ƒ›
‘–Š‡”’Žƒ…‡Ǣ
‡Ȍ –Š‡ •–ƒ’ †—–› ˜ƒŽ—‡ ‘ˆ ƒ ”‡•‹†‡–‹ƒŽ —‹– †‘‡• ‘– ‡š…‡‡† •Ǥ Ͷͷ ŽƒŠ• ‹ˆ ’”‘Œ‡…– ‹• ƒ’’”‘˜‡† ƒˆ–‡”
͵ͲȀͲͻȀʹͲͳͻǢ
 370 Lesson 6 Ȉ EP-TL

ˆȌ –Š‡…ƒ”’‡–ƒ”‡ƒ‘ˆ–Š‡”‡•‹†‡–‹ƒŽ—‹–…‘’”‹•‡†‹–Š‡Š‘—•‹‰’”‘Œ‡…–†‘‡•‘–‡š…‡‡†͵Ͳ•“—ƒ”‡‡–‡”•
ȋ͸Ͳ•“—ƒ”‡‡–‡”•‹ˆ’”‘Œ‡…–ƒ’’”‘˜‡†ƒˆ–‡”͵ͲȀͲͻȀʹͲͳͻȌǡ™Š‡”‡–Š‡’”‘Œ‡…–‹•Ž‘…ƒ–‡†™‹–Š‹–Š‡…‹–‹‡•‘ˆ
Š‡ƒ‹ǡ‡ŽŠ‹ǡ‘Žƒ–ƒ‘”—„ƒ‹‘”™‹–Š‹–Š‡†‹•–ƒ…‡ǡ‡ƒ•—”‡†ƒ‡”‹ƒŽŽ›ǡ‘ˆʹͷ‹Ž‘‡–”‡•ˆ”‘–Š‡
—‹…‹’ƒŽ Ž‹‹–• ‘ˆ –Š‡•‡ …‹–‹‡• ‘” ͸Ͳ •“—ƒ”‡ ‡–”‡• ȋ ͻͲ •“—ƒ”‡ ‡–‡”• ‹ˆ ’”‘Œ‡…– ƒ’’”‘˜‡† ƒˆ–‡”
͵ͲȀͲͻȀʹͲͳͻȌǡ™Š‡”‡–Š‡’”‘Œ‡…–‹•Ž‘…ƒ–‡†‹ƒ›‘–Š‡”’Žƒ…‡Ǣ
 “Carpet Area”‡ƒ•–Š‡‡–—•ƒ„Ž‡ϐŽ‘‘”ƒ”‡ƒ‘ˆƒƒ’ƒ”–‡–ȏ‡š…Ž—†‹‰ȋ‹Ȍ–Š‡ƒ”‡ƒ…‘˜‡”‡†„›–Š‡
‡š–‡”ƒŽ ™ƒŽŽ• ȋ‹‹Ȍ ƒ”‡ƒ• —†‡” –Š‡ •‡”˜‹…‡ •Šƒˆ–•Ȁ‡š…Ž—•‹˜‡ „ƒŽ…‘› ‘” ˜‡”ƒ†ƒŠ ƒ”‡ƒȀ‡š…Ž—•‹˜‡ ‘’‡
–‡””ƒ…‡ƒ”‡ƒǡ„—–‹…Ž—†‹‰–Š‡ƒ”‡ƒ…‘˜‡”‡†„›–Š‡‹–‡”ƒŽ’ƒ”–‹‘™ƒŽŽ‘ˆ–Š‡ƒ’ƒ”–‡–ǤȐ
Special provisions in respect of certain undertakings or enterprises in certain special category
States [Section 80-IC]
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘ˆ”‘•—…Š’”‘ϐ‹–•ƒ†‰ƒ‹•ƒ••’‡…‹ϐ‹‡†‹—„Ǧ•‡…–‹‘ȋ͵Ȍ–‘ƒƒ••‡••‡‡™Š‘•‡
‰”‘••–‘–ƒŽ‹…‘‡‹…Ž—†‡•ƒ›’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†„›ƒ—†‡”–ƒ‹‰‘”ƒ‡–‡”’”‹•‡ˆ”‘ƒ›„—•‹‡••
”‡ˆ‡””‡†–‘‹—„Ǧ•‡…–‹‘ȋʹȌǡ‹ƒ……‘”†ƒ…‡™‹–Šƒ†•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘Ǥ
ͳǤ Š‹••‡…–‹‘ƒ’’Ž‹‡•–‘ƒ›—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡ǡȂ
ȋƒȌ ™Š‹…ŠŠƒ•„‡‰—‘”„‡‰‹•–‘ƒ—ˆƒ…–—”‡‘”’”‘†—…‡ƒ›ƒ”–‹…Ž‡‘”–Š‹‰ǡ‘–„‡‹‰ƒ›ƒ”–‹…Ž‡‘”
–Š‹‰•’‡…‹ϐ‹‡†‹–Š‡Š‹”–‡‡–Š…Š‡†—Ž‡ǡƒ†—†‡”–ƒ‡••—„•–ƒ–‹ƒŽ‡š’ƒ•‹‘†—”‹‰–Š‡’‡”‹‘†
„‡‰‹‹‰Ȃ
ȋ‹Ȍ ‘ –Š‡ ʹ͵”† †ƒ› ‘ˆ ‡…‡„‡”ǡ ʹͲͲʹ ƒ† ‡†‹‰ „‡ˆ‘”‡ –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲͳʹǡ ‹ ƒ›
•’‡…‹ϐ‹‡†ƒ”‡ƒ•ǡ‹–Š‡–ƒ–‡‘ˆ‹‹Ǣ‘”
ȋ‹‹Ȍ ‘–Š‡͹–Š†ƒ›‘ˆ ƒ—ƒ”›ǡʹͲͲ͵ƒ†‡†‹‰„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳʹǡ‹ƒ›•’‡…‹ϐ‹‡†
ƒ”‡ƒ•ǡ‹–Š‡–ƒ–‡‘ˆ‹ƒ…ŠƒŽ”ƒ†‡•Š‘”–Š‡–ƒ–‡‘ˆ––ƒ”ƒ…ŠƒŽǢ‘”
ȋ‹‹‹Ȍ ‘–Š‡ʹͶ–Š†ƒ›‘ˆ‡…‡„‡”ǡͳͻͻ͹ƒ†‡†‹‰„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲ͹ǡ‹ƒ›
ȋ‹˜Ȍ •’‡…‹ϐ‹‡†ƒ”‡ƒ•ǡ‹ƒ›‘ˆ–Š‡‘”–ŠǦƒ•–‡”–ƒ–‡•Ǣ
 ’‡…‹ϐ‹‡†ƒ”‡ƒ‡ƒ•ƒ›š’‘”–”‘…‡••‹‰‘‡‘”–‡‰”ƒŽˆ”ƒ•–”—…–—”‡‡˜‡Ž‘’‡–‡–”‡‘”
†—•–”‹ƒŽ
”‘™–Š‡–”‡‘”†—•–”‹ƒŽƒ”‘”Š‡‡ƒ”ǡƒ•‘–‹ϐ‹‡†„›–Š‡‘ƒ”†‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›–Š‡…‡–”ƒŽ‰‘˜‡”‡–‹–Š‹•”‡‰ƒ”†Ǥ
ȋ„Ȍ ™Š‹…Š Šƒ• „‡‰— ‘” „‡‰‹• –‘ ƒ—ˆƒ…–—”‡ ‘” ’”‘†—…‡ ƒ› ƒ”–‹…Ž‡ ‘” –Š‹‰ǡ •’‡…‹ϐ‹‡† ‹ –Š‡
‘—”–‡‡–Š …Š‡†—Ž‡ ‘” …‘‡…‡• ƒ› ‘’‡”ƒ–‹‘ •’‡…‹ϐ‹‡† ‹ –Šƒ– …Š‡†—Ž‡ǡ ƒ† —†‡”–ƒ‡•
•—„•–ƒ–‹ƒŽ‡š’ƒ•‹‘†—”‹‰–Š‡’‡”‹‘†„‡‰‹‹‰Ȃ
ȋ‹Ȍ ‘–Š‡ʹ͵”††ƒ›‘ˆ‡…‡„‡”ǡʹͲͲʹƒ†‡†‹‰„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳʹǡ‹–Š‡–ƒ–‡
‘ˆ‹‹Ǣ‘”
ȋ‹‹Ȍ ‘–Š‡͹–Š†ƒ›‘ˆ ƒ—ƒ”›ǡʹͲͲ͵ƒ†‡†‹‰„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳʹǡ‹–Š‡–ƒ–‡‘ˆ
‹ƒ…ŠƒŽ”ƒ†‡•Š‘”–Š‡–ƒ–‡‘ˆ––ƒ”ƒ…ŠƒŽǢ‘”
ȋ‹‹‹Ȍ ‘–Š‡ʹͶ–Š†ƒ›‘ˆ‡…‡„‡”ǡͳͻͻ͹ƒ†‡†‹‰„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲ͹ǡ‹ƒ›‘ˆ–Š‡
‘”–ŠǦƒ•–‡”–ƒ–‡•Ǥ
ʹǤ Š‡†‡†—…–‹‘”‡ˆ‡””‡†–‘‹—„Ǧ•‡…–‹‘ȋͳȌ•ŠƒŽŽ„‡Ȃ
ȋ‹Ȍ ‹–Š‡…ƒ•‡‘ˆƒ›—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡”‡ˆ‡””‡†–‘‹—„Ǧ…Žƒ—•‡•ȋ‹Ȍƒ†ȋ‹‹‹Ȍ‘ˆŽƒ—•‡ȋƒȌ‘”
—„Ǧ…Žƒ—•‡ ȋ‹Ȍ ƒ† ȋ‹‹‹Ȍ ‘ˆ Žƒ—•‡ ȋ„Ȍǡ ‘ˆ —„Ǧ•‡…–‹‘ ȋʹȌǡ ͳͲͲΨ ‘ˆ •—…Š ’”‘ϐ‹–• ƒ† ‰ƒ‹• ˆ‘” –‡
ƒ••‡••‡–›‡ƒ”•…‘‡…‹‰™‹–Š–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”Ǣ
ȋ‹‹Ȍ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ› —†‡”–ƒ‹‰ ‘” ‡–‡”’”‹•‡ ”‡ˆ‡””‡† –‘ ‹ —„Ǧ…Žƒ—•‡ ȋ‹‹Ȍ ‘ˆ Žƒ—•‡ ȋƒȌ ‘” —„Ǧ
…Žƒ—•‡ȋ‹‹Ȍ‘ˆŽƒ—•‡ȋ„Ȍǡ‘ˆ—„Ǧ•‡…–‹‘ȋʹȌǡͳͲͲΨ‘ˆ•—…Š’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ‘”ϐ‹˜‡ƒ••‡••‡–›‡ƒ”•
…‘‡…‹‰™‹–Š–Š‡‹‹–‹ƒŽƒ••‡••‡–›‡ƒ”ƒ†–Š‡”‡ƒˆ–‡”ǡʹͷΨȋ‘”͵ͲΨ™Š‡”‡–Š‡ƒ••‡••‡‡‹•ƒ
…‘’ƒ›Ȍ‘ˆ–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•Ǥ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 371

͵Ǥ Š‹••‡…–‹‘ƒ’’Ž‹‡•–‘ƒ›—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡™Š‹…Šˆ—Žϐ‹Ž•ƒŽŽ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǡƒ‡Ž›ǣ
ȋ‹Ȍ ‹–‹•‘–ˆ‘”‡†„›•’Ž‹––‹‰—’ǡ‘”–Š‡”‡…‘•–”—…–‹‘ǡ‘ˆƒ„—•‹‡••ƒŽ”‡ƒ†›‹‡š‹•–‡…‡Ǣ
 ”‘˜‹†‡†–Šƒ––Š‹•…‘†‹–‹‘•ŠƒŽŽ‘–ƒ’’Ž›‹”‡•’‡…–‘ˆƒ—†‡”–ƒ‹‰™Š‹…Š‹•ˆ‘”‡†ƒ•ƒ”‡•—Ž–
‘ˆ –Š‡ ”‡Ǧ‡•–ƒ„Ž‹•Š‡–ǡ ”‡…‘•–”—…–‹‘ ‘” ”‡˜‹˜ƒŽ „› –Š‡ ƒ••‡••‡‡ ‘ˆ –Š‡ „—•‹‡•• ‘ˆ ƒ› •—…Š
—†‡”–ƒ‹‰ƒ•‹•”‡ˆ‡””‡†–‘‹‡…–‹‘͵͵ǡ‹–Š‡…‹”…—•–ƒ…‡•ƒ†™‹–Š‹–Š‡’‡”‹‘†•’‡…‹ϐ‹‡†
‹–Šƒ–•‡…–‹‘Ǣ
ȋ‹‹Ȍ ‹–‹•‘–ˆ‘”‡†„›–Š‡–”ƒ•ˆ‡”–‘ƒ‡™„—•‹‡••‘ˆƒ…Š‹‡”›‘”’Žƒ–’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›
’—”’‘•‡Ǥ
ExplanationǤȂŠ‡’”‘˜‹•‹‘•‘ˆš’Žƒƒ–‹‘•ͳƒ†ʹ–‘—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ‡…–‹‘ͺͲǦ•ŠƒŽŽƒ’’Ž›ˆ‘”
–Š‡’—”’‘•‡•‘ˆŽƒ—•‡ȋ‹‹Ȍ‘ˆ–Š‹••—„Ǧ•‡…–‹‘ƒ•–Š‡›ƒ’’Ž›ˆ‘”–Š‡’—”’‘•‡•‘ˆŽƒ—•‡ȋ‹‹Ȍ‘ˆ–Šƒ–•—„Ǧ
•‡…–‹‘Ǥ
ͶǤ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•…–ǡ‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆ
–Š‡ƒ••‡••‡‡ǡ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†—†‡”ƒ›‘–Š‡”•‡…–‹‘…‘–ƒ‹‡†‹Šƒ’–‡”‘”‹‡…–‹‘
ͳͲ‘”‡…–‹‘ͳͲǡ‹”‡Žƒ–‹‘–‘–Š‡’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ–Š‡—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡Ǥ
ͷǤ ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ –Š‹• …–ǡ ‘ †‡†—…–‹‘ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† –‘ ƒ› —†‡”–ƒ‹‰ ‘”
‡–‡”’”‹•‡—†‡”–Š‹••‡…–‹‘ǡ™Š‡”‡–Š‡–‘–ƒŽ’‡”‹‘†‘ˆ†‡†—…–‹‘‹…Ž—•‹˜‡‘ˆ–Š‡’‡”‹‘†‘ˆ†‡†—…–‹‘
—†‡”–Š‹••‡…–‹‘ǡ‘”—†‡”–Š‡•‡…‘†’”‘˜‹•‘–‘—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ‡…–‹‘ͺͲǦ‘”—†‡”‡…–‹‘ͳͲǡ
ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‡š…‡‡†•–‡ƒ••‡••‡–›‡ƒ”•Ǥ
͸Ǥ Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹—„Ǧ•‡…–‹‘ȋͷȌƒ†—„Ǧ•‡…–‹‘•ȋ͹Ȍ–‘ȋͳʹȌ‘ˆ‡…–‹‘ͺͲǦ•ŠƒŽŽǡ•‘ˆƒ”ƒ•
ƒ›„‡ǡƒ’’Ž›–‘–Š‡‡Ž‹‰‹„Ž‡—†‡”–ƒ‹‰‘”‡–‡”’”‹•‡—†‡”–Š‹••‡…–‹‘Ǥ
͹Ǥ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡǦ
ȋ‹Ȍ Dz†—•–”‹ƒŽ”‡ƒdz‡ƒ••—…Šƒ”‡ƒ•ǡ™Š‹…Š–Š‡‘ƒ”†ǡƒ›„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ
•’‡…‹ˆ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
ȋ‹‹Ȍ Dz†—•–”‹ƒŽ•–ƒ–‡dz‡ƒ••—…Š‡•–ƒ–‡•ǡ™Š‹…Š–Š‡‘ƒ”†ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ
•’‡…‹ˆ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
ȋ‹‹‹Ȍ Dz†—•–”‹ƒŽ
”‘™–Š‡–”‡dz‡ƒ••—…Š…‡–”‡•ǡ™Š‹…Š–Š‡‘ƒ”†ǡƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ

ƒœ‡––‡ǡ•’‡…‹ˆ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
ȋ‹˜Ȍ Dz†—•–”‹ƒŽƒ”dz‡ƒ••—…Š’ƒ”•ǡ™Š‹…Š–Š‡‘ƒ”†ǡƒ›„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ
•’‡…‹ˆ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
ȋ˜Ȍ Dz‹‹–‹ƒŽ ƒ••‡••‡– ›‡ƒ”dz ‡ƒ• –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡
—†‡”–ƒ‹‰‘”–Š‡‡–‡”’”‹•‡„‡‰‹•–‘ƒ—ˆƒ…–—”‡‘”’”‘†—…‡ƒ”–‹…Ž‡•‘”–Š‹‰•ǡ‘”…‘‡…‡•
‘’‡”ƒ–‹‘‘”…‘’Ž‡–‡••—„•–ƒ–‹ƒŽ‡š’ƒ•‹‘Ǣ
ȋ˜‹Ȍ Dz–‡‰”ƒ–‡† ˆ”ƒ•–”—…–—”‡ ‡˜‡Ž‘’‡– ‡–”‡dz ‡ƒ• •—…Š …‡–”‡•ǡ ™Š‹…Š –Š‡ ‘ƒ”†ǡ ƒ›ǡ „›
‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ•’‡…‹ˆ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›
–Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
ȋ˜‹‹Ȍ Dz‘”–ŠǦƒ•–‡” –ƒ–‡•dz ‡ƒ• –Š‡ –ƒ–‡• ‘ˆ ”—ƒ…ŠƒŽ ”ƒ†‡•Šǡ ••ƒǡ ƒ‹’—”ǡ ‡‰ŠƒŽƒ›ƒǡ
‹œ‘”ƒǡƒ‰ƒŽƒ†ƒ†”‹’—”ƒǢ
ȋ˜‹‹‹Ȍ Dz‘ˆ–™ƒ”‡‡…Š‘Ž‘‰›ƒ”dz‡ƒ•ƒ›’ƒ”•‡–—’‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‘ˆ–™ƒ”‡‡…Š‘Ž‘‰›
ƒ”•…Š‡‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘ˆ†‹ƒ‹–Š‡‹‹•–”›‘ˆ‘‡”…‡ƒ††—•–”›Ǣ
ȋ‹šȌ Dz•—„•–ƒ–‹ƒŽ‡š’ƒ•‹‘dz‡ƒ•‹…”‡ƒ•‡‹–Š‡‹˜‡•–‡–‹–Š‡’Žƒ–ƒ†ƒ…Š‹‡”›„›ƒ–Ž‡ƒ•–
ϐ‹ˆ–›’‡”…‡–‘ˆ–Š‡„‘‘˜ƒŽ—‡‘ˆ’Žƒ–ƒ†ƒ…Š‹‡”›ȋ„‡ˆ‘”‡–ƒ‹‰†‡’”‡…‹ƒ–‹‘‹ƒ››‡ƒ”Ȍǡƒ•
‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡•—„•–ƒ–‹ƒŽ‡š’ƒ•‹‘‹•—†‡”–ƒ‡Ǣ
ȋšȌ DzŠ‡‡ ƒ”dz ‡ƒ• •—…Š ’ƒ”•ǡ ™Š‹…Š –Š‡ ‘ƒ”†ǡ ƒ›ǡ „› ‘–‹ϐ‹…ƒ–‹‘ ‹ –Š‡ ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ
•’‡…‹ˆ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ˆ”ƒ‡†ƒ†‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
 372 Lesson 6 Ȉ EP-TL

‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘–Š‡—•‹‡••‘ˆ…‘ŽŽ‡…–‹‰ƒ†’”‘…‡••‹‰‹‘Ǧ
Degradable Waste [Section 80-JJA]
‡…–‹‘ͺͲ ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒƒ••‡••‡‡™Š‘•‡‰”‘••–‘–ƒŽ‹…‘‡‹…Ž—†‡•ƒ›’”‘ϐ‹–•ƒ†‰ƒ‹•†‡”‹˜‡†
ˆ”‘ –Š‡ „—•‹‡•• ‘ˆ …‘ŽŽ‡…–‹‰ ƒ† ’”‘…‡••‹‰ ‘” –”‡ƒ–‹‰ ‘ˆ „‹‘Ǧ†‡‰”ƒ†ƒ„Ž‡ ™ƒ•–‡ ˆ‘” ‰‡‡”ƒ–‹‰ ’‘™‡”ǡ ‘”
’”‘†—…‹‰ „‹‘Ǧˆ‡”–‹Ž‹œ‡”•ǡ „‹‘Ǧ’‡•–‹…‹†‡• ‘” ‘–Š‡” „‹‘Ž‘‰‹…ƒŽ ƒ‰‡–• ‘” ˆ‘” ’”‘†—…‹‰ „‹‘Ǧ‰ƒ•ǡ ƒ‹‰ ’‡ŽŽ‡–• ‘”
„”‹“—‡––‡ˆ‘”ˆ—‡Ž‘”‘”‰ƒ‹…ƒ—”‡ǡ‘ˆƒƒ‘—–‡“—ƒŽ–‘–Š‡™Š‘Ž‡‘ˆ•—…Š’”‘ϐ‹–ƒ†‰ƒ‹•ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡
…‘•‡…—–‹˜‡ ƒ••‡••‡– ›‡ƒ”• „‡‰‹‹‰ ™‹–Š –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š •—…Š
„—•‹‡••…‘‡…‡•Ǥ

Deduction in respect of Employment of New Workmen [Section 80-JJAA]

Š‡†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘‹•‘–ƒ˜ƒ‹Žƒ„Ž‡—Ž‡••–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•”‡’‘”–‘ˆ–Š‡ƒ……‘—–ƒ–ǡƒ•†‡ϐ‹‡†
‹–Š‡š’Žƒƒ–‹‘„‡Ž‘™•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ʹͺͺǡ„‡ˆ‘”‡–Š‡•’‡…‹ϐ‹‡††ƒ–‡”‡ˆ‡””‡†–‘‹•‡…–‹‘ͶͶ‰‹˜‹‰
•—…Š’ƒ”–‹…—Žƒ”•‹–Š‡”‡’‘”–ƒ•ƒ›„‡’”‡•…”‹„‡†[Amendment vide Finance Act, 2020]

Amount of Deduction:

ˆ–Š‡ƒˆ‘”‡‡–‹‘‡†…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ†‡†—…–‹‘‘ˆƒƒ‘—–‡“—ƒŽ–‘͵ͲΨ
‘ˆƒ††‹–‹‘ƒŽ™ƒ‰‡•’ƒ‹†–‘–Š‡‡™”‡‰—Žƒ”™‘”‡‡’Ž‘›‡†„›–Š‡ƒ••‡••‡‡‹–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”–Š”‡‡ƒ••‡••‡–
›‡ƒ”•‹…Ž—†‹‰–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š‡’Ž‘›‡–‹•’”‘˜‹†‡†Ǥ
ͳǤ††‹–‹‘ƒŽ™ƒ‰‡•‡ƒ•–Š‡™ƒ‰‡•’ƒ‹†‘”’ƒ›ƒ„Ž‡–‘‡™”‡‰—Žƒ”™‘”ƒ‡’Ž‘›‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
…ƒ•‡‘ˆƒ‡š‹•–‹‰„—•‹‡••ƒ††‹–‹‘ƒŽ‡’Ž‘›‡‡…‘•–•ŠƒŽŽǡ‹ˆǦ
ȋƒȌ Š‡”‡‹•‘‹…”‡ƒ•‡‹—„‡”‡’Ž‘›‡‡•ˆ”‘–Š‡–‘–ƒŽ—„‡”‘ˆ‡’Ž‘›‡‡•‡’Ž‘›‡†ƒ•‘–Š‡Žƒ•–
†ƒ›‘ˆ–Š‡’”‡…‡†‹‰’”‡˜‹‘—•›‡ƒ”Ǥ
ȋ„Ȍ ƒ‰‡•ƒ”‡’ƒ‹†‘–Š‡”™‹•‡–Šƒƒ……‘—–’ƒ›‡‡…Š‡“—‡Ȁƒ……‘—–’ƒ›‡‡„ƒ†”ƒˆ–Ȁ„›ƒ„ƒƒ……‘—–‘”
–Š”‘—‰Š’”‡•…”‹„‡†‡Ž‡…–”‘‹…‘†‡Ǥ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 373

…ƒ•‡‘ˆƒ‡™„—•‹‡••™ƒ‰‡•Ȁ‡‘Ž—‡–•’ƒ‹†Ȁ’ƒ›ƒ„Ž‡–‘‡’Ž‘›‡‡••ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ††‹–‹‘ƒŽ™ƒ‰‡•Ǥ
‡…‡ǡ ‹ –Š‡ ϐ‹”•– ›‡ƒ” ‘ˆ ƒ ‡™ „—•‹‡••ǡ –Š‹”–› ’‡”…‡– ‘ˆ ƒŽŽ ‡‘Ž—‡–• ’ƒ‹† ‘” ’ƒ›ƒ„Ž‡ –‘ –Š‡ ‡’Ž‘›‡‡•
‡’Ž‘›‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ
‘–‡ǣŠ‡™‘”†Ǯ ƒ…–‘”›ǯ•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋȌ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡ ƒ…–‘”‹‡•…–ǡͳͻͶͺǤ
‡‰—Žƒ”™‘”‡†‘‡•‘–‹…Ž—†‡ǣ
ȋƒȌ ƒ…ƒ•—ƒŽ™‘”ƒ
ȋ„Ȍ ƒ™‘”ƒ‡’Ž‘›‡†–Š”‘—‰Š…‘–”ƒ…–Žƒ„‘—”
ȋ…Ȍ ƒ›‘–Š‡”™‘”ƒ‡’Ž‘›‡†ˆ‘”ƒ’‡”‹‘†Ž‡••–ŠƒʹͶͲ†ƒ›•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‘”Ž‡••–ŠƒͳͷͲ
†ƒ›•ˆ‘”ƒ’’ƒ”‡Žǡˆ‘‘–™‡ƒ”ƒ†Ž‡ƒ–Š‡”‹†—•–”›Ǥ
ʹǤ ‹–Š ƒ ˜‹‡™ –‘ ‡š–‡† –Š‹• ‡’Ž‘›‡– ‰‡‡”ƒ–‹‘ ‹…‡–‹˜‡ –‘ ƒŽŽ •‡…–‘”•ǡ ƒ ƒ‡†‡– Šƒ• „‡‡ ƒ†‡ –‘
’”‘˜‹†‡–Šƒ––Š‡†‡†—…–‹‘—†‡”–Š‡•ƒ‹†’”‘˜‹•‹‘••ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ…‘•–‹…—””‡†‘ƒ›‡’Ž‘›‡‡
™Š‘•‡–‘–ƒŽ‡‘Ž—‡–•ƒ”‡Ž‡••–Šƒ‘”‡“—ƒŽ–‘–™‡–›ϐ‹˜‡–Š‘—•ƒ†”—’‡‡•’‡”‘–ŠǤ‘†‡†—…–‹‘ǡŠ‘™‡˜‡”ǡ
•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ…‘•–‹…—””‡†‘–Š‘•‡‡’Ž‘›‡‡•ǡˆ‘”™Š‘–Š‡‡–‹”‡…‘–”‹„—–‹‘—†‡”’Ž‘›‡‡•ǯ
‡•‹‘…Š‡‡‘–‹ϐ‹‡†‹ƒ……‘”†ƒ…‡™‹–Š’Ž‘›‡‡•ǯ”‘˜‹†‡– —†ƒ†‹•…‡ŽŽƒ‡‘—•”‘˜‹•‹‘•…–ǡͳͻͷʹǡ‹•
’ƒ‹†„›–Š‡
‘˜‡”‡–Ǥ
ƒȌ ˆ‘” ™Š‘ –Š‡ ‡–‹”‡ …‘–”‹„—–‹‘ —†‡” ’Ž‘›‡‡•ǯ ‡•‹‘ …Š‡‡ ‘–‹ϐ‹‡† ‹ ƒ……‘”†ƒ…‡ ™‹–Š
’Ž‘›‡‡•ǯ”‘˜‹†‡– —†ƒ†‹•…‡ŽŽƒ‡‘—•”‘˜‹•‹‘•…–ǡͳͻͷʹǡ‹•’ƒ‹†„›–Š‡
‘˜‡”‡–Ǥ
„Ȍ ‡’Ž‘›‡‡™Š‘†‘‡•‘–’ƒ”–‹…‹’ƒ–‡‹‡…‘‰‹•‡†’”‘˜‹†‡–ˆ—†Ǥ
…Ȍ ‡’Ž‘›‡‡™Š‘‹•‡’Ž‘›‡†ˆ‘”ƒ’‡”‹‘†Ž‡••–ŠƒʹͶͲ†ƒ›•ȋͳͷͲ†ƒ›•‹…ƒ•‡‘ˆƒ’’ƒ”‡Žǡˆ‘‘–™‡ƒ”ƒ†
Ž‡ƒ–Š‡”†—•–”›Ȍ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
͵Ǥ’Ž‘›‡”ǯ•…‘–”‹„—–‹‘–‘’”‘˜‹†‡–ˆ—†‘”’‡•‹‘ˆ—†‘”ƒ›‘–Š‡”ˆ—†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆ‡’Ž‘›‡‡‹•‘–
‡Ž‹‰‹„Ž‡ ˆ‘” †‡†—…–‹‘Ǥ Ž•‘ ƒ‘—– ’ƒ‹† „› ‡’Ž‘›‡” ƒ– –‹‡ ‘ˆ –‡”‹ƒ–‹‘ ‘ˆ •‡”˜‹…‡ ‘” •—’‡”ƒ—ƒ–‹‘ ‘”
˜‘Ž—–ƒ”›”‡–‹”‡‡–‡–…Ǥ‘–‡Ž‹‰‹„Ž‡ˆ‘”†‡†—…–‹‘Ǥ
ͶǤŠ‡”‡ƒ‡™‡’Ž‘›‡‡‹•‡’Ž‘›‡†ˆ‘”ƒ’‡”‹‘†Ž‡••–ŠƒʹͶͲȋ‘”ͳͷͲ†ƒ›•‹…ƒ•‡‘ˆƒ’’ƒ”‡ŽȀˆ‘‘–™‡ƒ”ȀŽ‡ƒ–Š‡”
‹†—•–”›Ȍ†—”‹‰ƒ’”‡˜‹‘—•›‡ƒ”„—–‹‡š–›‡ƒ”Š‡‹•‡’Ž‘›‡†ˆ‘”ƒ’‡”‹‘†‘ˆʹͶͲ‘”ͳͷͲ†ƒ›•ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ
–Š‡Š‡•ŠƒŽŽ†‡‡‡†–‘Šƒ˜‡„‡‡‡’Ž‘›‡†‹•—…Š‡š–›‡ƒ”ˆ‘”–Š‡’—”’‘•‡‘ˆ†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘Ǥ

Deduction in respect of certain incomes of Offshore Banking Units [Section 80LA]

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒƒ••‡••‡‡„‡‹‰ƒ•…Š‡†—Ž‡†„ƒǡ‘”ƒ›„ƒ‹…‘”’‘”ƒ–‡†„›‘”—†‡”–Š‡
Žƒ™•‘ˆƒ…‘—–”›‘—–•‹†‡†‹ƒǡˆ”‘‹…‘‡
ȋ‹Ȍ ‘ˆƒ‘ˆˆ•Š‘”‡„ƒ‹‰—‹–‹ƒ•’‡…‹ƒŽ‡…‘‘‹…œ‘‡Ǣ
ȋ‹‹Ȍ ˆ”‘–Š‡„—•‹‡••ǡ”‡ˆ‡””‡†–‘‹—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘͸‘ˆ–Š‡ƒ‹‰‡‰—Žƒ–‹‘…–ǡͳͻͶͻȋͳͲ‘ˆ
ͳͻͶͻȌǡ™‹–Šƒ—†‡”–ƒ‹‰Ž‘…ƒ–‡†‹ƒ•’‡…‹ƒŽ‡…‘‘‹…œ‘‡‘”ƒ›‘–Š‡”—†‡”–ƒ‹‰™Š‹…Š†‡˜‡Ž‘’•ǡ
†‡˜‡Ž‘’•ƒ†‘’‡”ƒ–‡•‘”‘’‡”ƒ–‡•ƒ†ƒ‹–ƒ‹•ƒ•’‡…‹ƒŽ‡…‘‘‹…œ‘‡Ǣ
ȋƒȌ ”‡…‡‹˜‡† ‹ …‘˜‡”–‹„Ž‡ ˆ‘”‡‹‰ ‡š…Šƒ‰‡ǡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ”‡‰—Žƒ–‹‘• ƒ†‡ —†‡” –Š‡
‘”‡‹‰š…Šƒ‰‡ƒƒ‰‡‡–…–ǡͳͻͻͻȋͶʹ‘ˆͳͻͻͻȌǤ
Deduction from Assessment year 2021-22

ͳͲͲΨ‘ˆ•—…Š‹…‘‡ˆ‘”ƒ› ͳͲ…‘•‡…—–‹˜‡›‡ƒ”•‘—–‘ˆͳͷ›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡›‡ƒ”‹™Š‹…Š‡…‡••ƒ”›
’‡”‹••‹‘‹•‘„–ƒ‹‡†ǡƒ––Š‡‘’–‹‘‘ˆ–Š‡ƒ••‡••‡‡Ǥ
‘†‹–‹‘•–‘„‡•ƒ–‹•ϐ‹‡†ǣ‘†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†—Ž‡••–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒŽ‘‰
™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡ǡȂ
ȋ‹Ȍ ‹–Š‡’”‡•…”‹„‡†ˆ‘”ȋ ‘”‘ǤͳͲ Ȍǡ‹Ǥ‡Ǥǡ–Š‡”‡’‘”–‘ˆƒƒ……‘—–ƒ–ƒ•†‡ϐ‹‡†‹–Š‡š’Žƒƒ–‹‘
„‡Ž‘™ —„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ ‡…–‹‘ ʹͺͺǡ …‡”–‹ˆ›‹‰ –Šƒ– –Š‡ †‡†—…–‹‘ Šƒ• „‡‡ …‘””‡…–Ž› …Žƒ‹‡† ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘Ǣƒ†
 374 Lesson 6 Ȉ EP-TL

ȋ‹‹Ȍ ƒ …‘’› ‘ˆ –Š‡ ’‡”‹••‹‘ ‘„–ƒ‹‡† —†‡” Žƒ—•‡ ȋƒȌ ‘ˆ —„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ ‡…–‹‘ ʹ͵ ‘ˆ –Š‡ ƒ‹‰
‡‰—Žƒ–‹‘…–ǡͳͻͶͻȋͳͲ‘ˆͳͻͶͻȌǡ‹…ƒ•‡‘ˆƒ‘ˆˆ•Š‘”‡ƒ‹‰‹–Ǥ
Explanation Ǧ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǣ
ȋƒȌ Dz…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋƒȌ‘ˆ–Š‡š’Žƒƒ–‹‘
„‡Ž‘™—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ‡…–‹‘ͺͲǢ
ȋ„Ȍ Dzˆˆ•Š‘”‡ƒ‹‰‹–dz‡ƒ•ƒ„”ƒ…Š‘ˆƒ„ƒ‹†‹ƒŽ‘…ƒ–‡†‹–Š‡•’‡…‹ƒŽ‡…‘‘‹…œ‘‡ƒ†Šƒ•
‘„–ƒ‹‡†–Š‡’‡”‹••‹‘—†‡”Žƒ—•‡ȋƒȌ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ʹ͵‘ˆ–Š‡ƒ‹‰‡‰—Žƒ–‹‘…–ǡ
ͳͻͶͻȋͳͲ‘ˆͳͻͶͻȌǢ
ȋ…Ȍ Dz•…Š‡†—Ž‡†„ƒdz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹Žƒ—•‡ȋ‡Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡‡•‡”˜‡ƒ
‘ˆ†‹ƒ…–ǡͳͻ͵Ͷȋʹ‘ˆͳͻ͵ͶȌǢ
ȋ†Ȍ Dz•’‡…‹ƒŽ‡…‘‘‹…œ‘‡dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹Žƒ—•‡ȋ˜‹‹‹Ȍ‘ˆ–Š‡š’Žƒƒ–‹‘ʹ–‘
‡…–‹‘ͳͲǤdz
Deduction in respect of certain inter-corporate dividends [Section 80M]
Š‡”‡–Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆƒ†‘‡•–‹……‘’ƒ›‹ƒ›’”‡˜‹‘—•›‡ƒ”‹…Ž—†‡•ƒ›‹…‘‡„›™ƒ›‘ˆ†‹˜‹†‡†•
ˆ”‘ƒ›‘–Š‡”†‘‡•–‹……‘’ƒ›‘”ƒˆ‘”‡‹‰…‘’ƒ›‘”ƒ„—•‹‡••–”—•–ǡ–Š‡”‡•ŠƒŽŽǡ‹ƒ……‘”†ƒ…‡™‹–Šƒ†
•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ǡ„‡ƒŽŽ‘™‡†‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆ•—…Š†‘‡•–‹……‘’ƒ›ǡƒ
†‡†—…–‹‘‘ˆƒƒ‘—–‡“—ƒŽ–‘•‘—…Š‘ˆ–Š‡ƒ‘—–‘ˆ‹…‘‡„›™ƒ›‘ˆ†‹˜‹†‡†•”‡…‡‹˜‡†ˆ”‘•—…Š‘–Š‡”
†‘‡•–‹……‘’ƒ›‘”ˆ‘”‡‹‰…‘’ƒ›‘”„—•‹‡••–”—•–ƒ•†‘‡•‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ†‹˜‹†‡††‹•–”‹„—–‡†„›
‹–‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡Ǥ
Š‡”‡ƒ›†‡†—…–‹‘ǡ‹”‡•’‡…–‘ˆ–Š‡ƒ‘—–‘ˆ†‹˜‹†‡††‹•–”‹„—–‡†„›–Š‡†‘‡•–‹……‘’ƒ›ǡŠƒ•„‡‡ƒŽŽ‘™‡†
—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆ•—…Šƒ‘—–‹ƒ›‘–Š‡”
’”‡˜‹‘—•›‡ƒ”Ǥ
Explanation.Ȃ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ–Š‡‡š’”‡••‹‘Dz†—‡†ƒ–‡dz‡ƒ•–Š‡†ƒ–‡‘‡‘–Š’”‹‘”–‘–Š‡
†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻǤ[Inserted vide Finance Act, 2020]

Deduction in respect of Income of Co-Operative Societies [Section 80P]

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•‹”‡•’‡…–‘ˆˆ‘ŽŽ‘™‹‰‹…‘‡•ǡ™Š‹…Šƒ”‡‹…Ž—†‡†‹
‰”‘••–‘–ƒŽ‹…‘‡ǣ
Ǥ ͳͲͲΨ‘ˆ–Š‡’”‘ϐ‹–•‘ˆƒ’”‹ƒ”›•‘…‹‡–›‡‰ƒ‰‡†‹•—’’Ž›‹‰‹Žǡ‘‹Ž•‡‡†•ǡˆ”—‹–•‘”˜‡‰‡–ƒ„Ž‡•”ƒ‹•‡†‘”
‰”‘™„›‹–•‡„‡”•–‘
Ȉ Š‡‰‘˜‡”‡–‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›Ǣ‘”
Ȉ ‰‘˜‡”‡–…‘’ƒ›‘”ƒ•–ƒ–—–‘”›…‘”’‘”ƒ–‹‘Ǣ‘”
Ȉ ˆ‡†‡”ƒŽ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ•—’’Ž›‹‰–Š‡ƒ„‘˜‡Ǧ•ƒ‹†’”‘†—…–•Ǥ

Ǥ ͳͲͲΨ‘ˆ–Š‡’”‘ϐ‹–•‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‡‰ƒ‰‡†‹ƒ›‘‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ…–‹˜‹–‹‡•ǣ
Ȉ ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ„ƒ‹‰‘”’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•–‘‹–•‡„‡”ǡ‘”
Ȉ …‘––ƒ‰‡‹†—•–”›ǡ‘”
Ȉ Š‡ƒ”‡–‹‰‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‰”‘™„›‹–•‡„‡”•ǡ‘”
Ȉ Š‡’—”…Šƒ•‡‘ˆƒ‰”‹…—Ž–—”ƒŽ‹’Ž‡‡–•ˆ‘”–Š‡’—”’‘•‡‘ˆ•—’’Ž›‹‰–Š‡–‘‹–•‡„‡”•ǡ‘”
Ȉ Š‡’”‘…‡••‹‰ǡ™‹–Š‘—––Š‡ƒ‹†‘ˆ’‘™‡”ǡ‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‘ˆ‹–•‡„‡”•ǡ‘”
Ȉ Š‡…‘ŽŽ‡…–‹˜‡†‹•’‘•ƒŽ‘ˆ–Š‡Žƒ„‘—”‘ˆ‹–•‡„‡”ǡ‘”
Ȉ ‹•Š‹‰‘”ƒŽŽ‹‡†ƒ…–‹˜‹–‹‡•ˆ‘”–Š‡’—”’‘•‡‘ˆ•—’’Ž›‹‰–Š‡–‘‹–•‡„‡”•Ǥ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 375

”‘˜‹†‡†ǡ‹–Š‡…ƒ•‡‘ˆŽƒ•––™‘–›’‡•‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•ǡ–Š‡†‡†—…–‹‘ǡ‹•ƒ˜ƒ‹Žƒ„Ž‡•—„Œ‡…––‘–Š‡
…‘†‹–‹‘ –Šƒ– –Š‡ ”—Ž‡• ƒ† „›‡ǦŽƒ™• ‘ˆ –Š‡ •‘…‹‡–› ”‡•–”‹…– –Š‡ ˜‘–‹‰ ”‹‰Š–• –‘ –Š‡ ‡„‡”• Ž‹‡ǡ –ƒ–‡

‘˜‡”‡–ǡ‘Ǧ‘’‡”ƒ–‹˜‡”‡†‹–‘…‹‡–›™Š‹…Š’”‘˜‹†‡ϐ‹ƒ…‹ƒŽƒ••‹•–ƒ…‡–‘–Š‡•‘…‹‡–›ƒ†‹†‹˜‹†—ƒŽǡ
™Š‘…‘–”‹„—–‡•–Š‡‹”Žƒ„‘—”•Ǥ
Ǥ‡ǤˆǤ ••‡••‡– ‡ƒ” ʹͲͲ͹ǦͲͺ –Š‹• ‡š‡’–‹‘ ‹• ‘– „‡ ƒ˜ƒ‹Žƒ„Ž‡ –‘ …‘Ǧ‘’‡”ƒ–‹˜‡ „ƒ• ‘–Š‡” –Šƒ ƒ
’”‹ƒ”›ƒ‰”‹…—Ž–—”ƒŽ…”‡†‹–•‘…‹‡–›‘”ƒ’”‹ƒ”›…‘Ǧ‘’‡”ƒ–‹˜‡ƒ‰”‹…—Ž–—”ƒŽƒ†”—”ƒŽ†‡˜‡Ž‘’‡–„ƒǤ
Ǥ ”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‘–Š‡”–Šƒ–Š‘•‡•’‡…‹ϐ‹‡†‹ƒ†ƒ„‘˜‡‹•‡š‡’–—’–‘–Š‡
•’‡…‹ϐ‹‡†Ž‹‹–•ǣ
Ȉ ‹•…ƒ•‡‘ˆƒ…‘•—‡”…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǧ•ǤͳǡͲͲǡͲͲͲ
Ȉ ‹•ƒ›‘–Š‡”…ƒ•‡Ǧ•ǤͷͲǡͲͲͲ

Ǥ ŽŽ’”‘ϐ‹–•„›™ƒ›‘ˆ‹–‡”‡•–‘”†‹˜‹†‡†ˆ”‘‹–•‹˜‡•–‡–™‹–Šƒ›‘–Š‡”…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǥ
Ǥ ͳͲͲΨ‘ˆ‹…‘‡‘”’”‘ϐ‹–‘ˆƒ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›ˆ”‘–Š‡Ž‡––‹‰‘ˆ‰‘†‘™•‘”™ƒ”‡Š‘—•‡ˆ‘”•–‘”ƒ‰‡ǡ
’”‘…‡••‹‰‘”ˆƒ…‹Ž‹–ƒ–‹‰–Š‡ƒ”‡–‹‰‘ˆ…‘‘†‹–‹‡•Ǥ
Ǥ …‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ‘–„‡‹‰ƒŠ‘—•‹‰•‘…‹‡–›‘”ƒ—”„ƒ…‘•—‡”••‘…‹‡–›‘”ƒ•‘…‹‡–›…ƒ””›‹‰‘
–”ƒ•’‘”–„—•‹‡••‘”ƒ•‘…‹‡–›‡‰ƒ‰‡†‹–Š‡’‡”ˆ‘”ƒ…‡‘ˆƒ›ƒ—ˆƒ…–—”‹‰‘’‡”ƒ–‹‘™‹–Š–Š‡ƒ‹†
‘ˆ’‘™‡”ǡ™Š‡”‡–Š‡‰”‘••–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†••ǤʹͲǡͲͲͲǤŠ‡ƒ‘—–‘ˆƒ›‹…‘‡„›™ƒ›‘ˆ
‹–‡”‡•–‘•‡…—”‹–‹‡•‘”ƒ›‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›…Šƒ”‰‡ƒ„Ž‡—†‡”‡…–‹‘ʹʹ™‹ŽŽƒŽ•‘„‡ƒŽŽ‘™‡†
ƒ•†‡†—…–‹‘Ǥ

CASE LAW

2017 Citizen Co-operative Society Ltd. v. Asstt. CIT Supreme Court

Š‡”‡ ƒ••‡••‡ •‘…‹‡–› ™ƒ• ‡‰ƒ‰‡† ‹ ƒ…–‹˜‹–› ‘ˆ ϔ‹ƒ…‡ „—•‹‡•• ƒ† ™ƒ• ƒŽ•‘ ‡‰ƒ‰‡† ‹ ƒ…–‹˜‹–› ‘ˆ
granting loans to general public as well, it could not be termed as co-operative society meant only for
providing credit facilities to its members, hence not entitled to deduction under section 80P [Assessment
year 2009-10] [In favour of revenue]
Fact of the Case: Š‡ƒ••‡••‡Ȁƒ’’‡ŽŽƒ–™ƒ•ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǥ ‘””‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”ʹͲͲͻǦͳͲǡ
‹– ™ƒ• †‡‹‡† –Š‡ „‡‡ˆ‹– ‘ˆ •‡…–‹‘ ͺͲ ‘ –Š‡ ‰”‘—† –Šƒ– ‹– ™ƒ• …ƒ””›‹‰ ‘ –Š‡ „ƒ‹‰ „—•‹‡•• ˆ‘”
’—„Ž‹…ƒ–Žƒ”‰‡ƒ†ˆ‘”ƒŽŽ’”ƒ…–‹…ƒŽ’—”’‘•‡•‹–™ƒ•ƒ…–‹‰Ž‹‡ƒ…‘Ǧ‘’‡”ƒ–‹˜‡„ƒ‰‘˜‡”‡†„›–Š‡ƒ‹‰
‡‰—Žƒ–‹‘…–ǡͳͻͶͻǡƒ†‹–•‘’‡”ƒ–‹‘•™‡”‡‘–…‘ˆ‹‡†–‘‹–•‡„‡”•„—––‘‘—–•‹†‡”•ƒ•™‡ŽŽǤ‡…‡ǡ
–Š‡••‡••‹‰ˆˆ‹…‡”ƒ’’Ž‹‡†•‡…–‹‘ͺͲȋͶȌ–‘†‡›†‡†—…–‹‘ƒ†™ƒ•‘ˆ–Š‡˜‹‡™–Šƒ–„‡‡ˆ‹–‘ˆ†‡†—…–‹‘ǡ
ƒ• …‘–‡’Žƒ–‡† —†‡” –Š‡ •ƒ‹† ’”‘˜‹•‹‘ ‹•ǡ inter aliaǡ ƒ†‹••‹„Ž‡ –‘ –Š‘•‡ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–‹‡• ™Š‹…Š
…ƒ””›‘„—•‹‡••‘ˆ„ƒ‹‰‘”’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•–‘‹–•‡„‡”Ǥ–™ƒ•ˆ‘—†–Šƒ––Š‡ƒ••‡••‡‡™ƒ•
…ƒ–‡”‹‰ –‘ –™‘ †‹•–‹…– …ƒ–‡‰‘”‹‡• ‘ˆ ’‡‘’Ž‡Ǥ Š‡ ˆ‹”•– …ƒ–‡‰‘”› ‹• –Šƒ– ‘ˆ ”‡•‹†‡– ‡„‡”• ‘” ‘”†‹ƒ”›
‡„‡”•Ǥ —”–Š‡”ǡ –Š‡ ƒ••‡••‡‡ Šƒ† …ƒ”˜‡† ‘—– ƒ‘–Š‡” …ƒ–‡‰‘”› ‘ˆ Ǯ‘‹ƒŽ ‡„‡”•ǯǤ Š‡”‡ ƒ”‡ –Š‘•‡
‡„‡”•™Š‘ƒ”‡ƒ‹‰†‡’‘•‹–•™‹–Š–Š‡ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡‘ˆ‘„–ƒ‹‹‰Ž‘ƒ•ǡ‡–…Ǥƒ†ǡ‹ˆƒ…–ǡ
–Š‡›ƒ”‡‘–‡„‡”•‹”‡ƒŽ•‡•‡Ǥ‘•–‘ˆ–Š‡„—•‹‡••‘ˆ–Š‡ƒ’’‡ŽŽƒ–™ƒ•™‹–Š–Š‹••‡…‘†…ƒ–‡‰‘”›‘ˆ
’‡”•‘•™Š‘Šƒ˜‡„‡‡‰‹˜‹‰†‡’‘•‹–•™Š‹…Šƒ”‡‡’–‹ˆ‹š‡††‡’‘•‹–•™‹–Šƒ‘–‹˜‡–‘‡ƒ”ƒš‹—
”‡–—”•Ǥ–‹•ƒŽ•‘ˆ‘—†–Šƒ––Š‡ƒ’’‡ŽŽƒ–‹•‡‰ƒ‰‡†‹–Š‡ƒ…–‹˜‹–›‘ˆ‰”ƒ–‹‰Ž‘ƒ•–‘‰‡‡”ƒŽ’—„Ž‹…ƒ•
™‡ŽŽǤŽŽ–Š‹•‹•†‘‡™‹–Š‘—–ƒ›ƒ’’”‘˜ƒŽˆ”‘–Š‡‡‰‹•–”ƒ”‘ˆ–Š‡•‘…‹‡–‹‡•Ǥ‹–Š‹†—Ž‰‡…‡‹••—…Š‹†
‘ˆƒ…–‹˜‹–›„›–Š‡ƒ’’‡ŽŽƒ–ǡ‹–‹•”‡ƒ”‡†„›–Š‡••‡••‹‰ˆˆ‹…‡”–Šƒ––Š‡ƒ…–‹˜‹–›‘ˆ–Š‡ƒ’’‡ŽŽƒ–‹•‹
˜‹‘Žƒ–‹‘‘ˆ–Š‡…‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡•…–Ǥ‘”‡‘˜‡”ǡ‹–‹•ƒ…‘Ǧ‘’‡”ƒ–‹˜‡…”‡†‹–•‘…‹‡–›™Š‹…Š‹•‘–‡–‹–Ž‡†
–‘†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲȋʹȌȋƒȌȋ‹Ȍ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ
Decision: Š‡—’”‡‡‘—”–„›‹’—‰‡†‘”†‡”Š‡Ž†–Šƒ––Š‡ƒ’’‡ŽŽƒ–…ƒ‘–„‡–”‡ƒ–‡†ƒ•ƒ…‘Ǧ‘’‡”ƒ–‹˜‡
•‘…‹‡–›‡ƒ–‘Ž›ˆ‘”‹–•‡„‡”•ƒ†’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•–‘‹–•‡„‡”••—…Šƒ•‘…‹‡–›…ƒ‘–…Žƒ‹–Š‡
„‡‡ϐ‹–‘ˆ•‡…–‹‘ͺͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ
 376 Lesson 6 Ȉ EP-TL

Deduction in respect of certain income of Producer Companies [Section 80PA]

ͳͲͲΨ‡†—…–‹‘‘ˆ–Š‡’”‘ϐ‹–•†‡”‹˜‡†ˆ”‘‡Ž‹‰‹„Ž‡„—•‹‡••–‘ƒ”‘†—…‡”‘’ƒ›Šƒ˜‹‰ƒ–‘–ƒŽ–—”‘˜‡”‘ˆŽ‡••
–Šƒ ‘‡ Š—†”‡† …”‘”‡ ”—’‡‡•Ǥ ‡‡ϐ‹– •ŠƒŽŽ „‡ ƒ˜ƒ‹Žƒ„Ž‡ ˆ‘” –Š‡ ’”‡˜‹‘—• ›‡ƒ” ”‡Ž‡˜ƒ– –‘ ƒ ƒ••‡••‡– ›‡ƒ”
…‘‡…‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳͻǡ„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͷǤ

ƒ…ƒ•‡™Š‡”‡–Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†ƒŽ•‘–‘†‡†—…–‹‘—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•Šƒ’–‡”ǡ–Š‡†‡†—…–‹‘
—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†™‹–Š”‡ˆ‡”‡…‡–‘–Š‡‹…‘‡ǡ‹ˆƒ›ǡƒ•”‡ˆ‡””‡†–‘‹–Š‹••‡…–‹‘‹…Ž—†‡†‹–Š‡
‰”‘••–‘–ƒŽ‹…‘‡ƒ•”‡†—…‡†„›–Š‡†‡†—…–‹‘•—†‡”•—…Š‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•Šƒ’–‡”Ǥ

Dz‡Ž‹‰‹„Ž‡„—•‹‡••dz‡ƒ•Ȃ
ȋƒȌ –Š‡ƒ”‡–‹‰‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‰”‘™„›–Š‡‡„‡”•
ȋ„Ȍ –Š‡’—”…Šƒ•‡‘ˆƒ‰”‹…—Ž–—”ƒŽ‹’Ž‡‡–•ǡ•‡‡†•ǡŽ‹˜‡•–‘…‘”‘–Š‡”ƒ”–‹…Ž‡•‹–‡†‡†ˆ‘”ƒ‰”‹…—Ž–—”‡ˆ‘”–Š‡
’—”’‘•‡‘ˆ•—’’Ž›‹‰–Š‡–‘–Š‡‡„‡”•
ȋ…Ȍ –Š‡’”‘…‡••‹‰‘ˆ–Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‘ˆ–Š‡‡„‡”•
Dz‡„‡”dzƒ†Dz”‘†—…‡”‘’ƒ›dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹•‡…–‹‘ͷͺͳ‘ˆ–Š‡‘’ƒ‹‡•…–ǡͳͻͷ͸Ǥ

Deduction in respect of Royalty Income, etc., of authors of certain books other than text books
[Section 80QQB]
‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ”‡•‹†‡–‹†‹˜‹†—ƒŽ™Š‘‹•ƒƒ—–Š‘”‘”ƒŒ‘‹–ƒ—–Š‘”‘ˆƒ„‘‘™Š‘•‡
‹…‘‡ ‹…Ž—†‡• ‹…‘‡ †‡”‹˜‡† ˆ”‘ •—…Š ’”‘ˆ‡••‹‘ǡ ”‡…‡‹˜‡† ‡‹–Š‡” ƒ• ƒ Ž—’ •— …‘•‹†‡”ƒ–‹‘ ˆ‘” –Š‡
ƒ••‹‰‡–‘”‰”ƒ–‘ˆƒ›‘ˆŠ‹•‹–‡”‡•–•‹–Š‡…‘’›”‹‰Š–‘ˆƒ›„‘‘‘””‘›ƒŽ–›‘ˆ„‘‘•‘–Š‡”–Šƒ–‡š–„‘‘•Ǥ
Š‡ ƒ‘—– ‘ˆ †‡†—…–‹‘ ‹• –Š‡ Ž‘™‡” ‘ˆ ‡Ž‹‰‹„Ž‡ ‹…‘‡ ‘” •Ǥ ͵ǡͲͲǡͲͲͲǤ Ž‹‰‹„Ž‡ ‹…‘‡ ȋ„‡ˆ‘”‡ †‡†—…–‹‰
‡š’‡†‹–—”‡‹…—””‡†Ȍ‹•Ž‘™‡”‘ˆ
ͳǤ —’•—…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡ƒ••‹‰‡–‘”‰”ƒ–
ʹǤ ‘›ƒŽ–›‘–‡š…‡‡†‹‰ͳͷΨ
͵Ǥ ˆ•—…Š‹…‘‡‹•‡ƒ”‡†‘—–•‹†‡†‹ƒǡ–Š‡’ƒ”–‘ˆ–Š‡‹…‘‡„”‘—‰Š––‘†‹ƒ‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡
™‹–Š‹͸‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‘”–Š‡‡š–‡†‡†’‡”‹‘†„›–Š‡™‹ŽŽ„‡…‘•‹†‡”‡†Ǥ
‘‘• ‡š…Ž—†‡ „”‘…Š—”‡•ǡ †‹ƒ”‹‡•ǡ ‰—‹†‡•ǡ Œ‘—”ƒŽ•ǡ ƒ‰ƒœ‹‡•ǡ ‡™•’ƒ’‡”•ǡ ’ƒ’ŠŽ‡–•ǡ –‡š– „‘‘• ˆ‘” •…Š‘‘Ž•ǡ
–”ƒ…–•ǡ …‘‡–ƒ”‹‡• ‘” ƒ› •—…Š ’—„Ž‹…ƒ–‹‘ ™Šƒ–‡˜‡” ƒ‡ ƒ› „‡Ǥ ‘ †‡†—…–‹‘ —†‡” –Š‹• •‡…–‹‘ •ŠƒŽŽ „‡
ƒŽŽ‘™‡†—Ž‡••ƒƒ••‡••‡‡ˆ—”‹•Š‡•ƒ…‡”–‹ϐ‹…ƒ–‡‹–Š‡’”‡•…”‹„‡†ˆ‘”ͳͲȀͳͲǤ

Illustration 12:
Mr. X receives royalty on books Rs. 1,00,000 at a rate of 18 percent and incurs Rs. 10, 000 as expenditure
for earning royalty. The books are covered under section 80QQB and royalty is received from abroad
and Rs. 50,000 are remitted to India till September 30, 2020. Determine deduction under section 80
QQB for the assessment year 2022-23.
Solution:
Ž‹‰‹„Ž‡‹…‘‡ȋ„‡ˆ‘”‡†‡†—…–‹‰‡š’‡†‹–—”‡‹…—””‡†Ȍ‹•Ž‘™‡”‘ˆ
ͳǤ —’•—…‘•‹†‡”ƒ–‹‘ 
ʹǤ ‘›ƒŽ–›‘–‡š…‡‡†‹‰ͳͷΨȋͳǡͲͲǡͲͲͲȀͳͺȌȗͳͷ ͺ͵ǡ͵͵Ͷ
͵Ǥ …‘‡„”‘—‰Š––‘†‹ƒ‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡ ͷͲǡͲͲͲ
Ž‹‰‹„Ž‡‹…‘‡•ǤͷͲǡͲͲͲ
š’‡†‹–—”‡‹…—””‡†•ǤͳͲǡͲͲͲ
‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ•ǤͶͲǡͲͲͲȋ•—„Œ‡…––‘ƒƒš‹—‘ˆ•Ǥ͵ǡͲͲǡͲͲͲȌǤ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 377

Deduction in respect of Royalty on Patents [Section 80RRB]

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘”‡•‹†‡–‹†‹˜‹†—ƒŽǡƒ’ƒ–‡–‡‡™Š‘‹•‹”‡…‡‹’–‘ˆ‹…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›
‹”‡•’‡…–‘ˆƒ’ƒ–‡–”‡‰‹•–‡”‡†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͲ͵—†‡”–Š‡ƒ–‡–•…–ǡͳͻ͹Ͳǡƒ†Š‹•‰”‘••–‘–ƒŽ
‹…‘‡ ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹…Ž—†‡• ”‘›ƒŽ–›ǡ •—„Œ‡…– –‘ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• •‡…–‹‘Ǥ Š‹• †‡†—…–‹‘ •ŠƒŽŽ „‡
ƒ˜ƒ‹Žƒ„Ž‡‘Ž›–‘ƒ”‡•‹†‡–‹†‹˜‹†—ƒŽ™Š‘‹•”‡‰‹•–‡”‡†ƒ•–Š‡–”—‡ƒ†ϐ‹”•–‹˜‡–‘”‹”‡•’‡…–‘ˆƒ‹˜‡–‹‘
—†‡”–Š‡ƒ–‡–•…–ǡͳͻ͹Ͳǡ‹…Ž—†‹‰–Š‡…‘Ǧ‘™‡”‘ˆ–Š‡’ƒ–‡–ǤŠ‡ƒ‘—–‘ˆ†‡†—…–‹‘‹•Ž‘™‡”‘ˆͳͲͲΨ‘ˆ
•—…Š‹…‘‡‘”•Ǥ͵ͲͲǡͲͲͲǤ…ƒ•‡ǡƒ›•—…Š‹…‘‡‹•‡ƒ”‡†ˆ”‘ƒ›•‘—”…‡•‘—–•‹†‡†‹ƒǡ•‘—…Š‘ˆ–Š‡
‹…‘‡ǡ•ŠƒŽŽ„‡–ƒ‡‹–‘ƒ……‘—–ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••‡…–‹‘ƒ•‹•„”‘—‰Š–‹–‘†‹ƒ„›ǡ‘”‘„‡ŠƒŽˆ‘ˆǡ–Š‡
ƒ••‡••‡‡‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡™‹–Š‹ƒ’‡”‹‘†‘ˆ•‹š‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š
•—…Š‹…‘‡‹•‡ƒ”‡†‘”™‹–Š‹•—…Šˆ—”–Š‡”’‡”‹‘†ƒ•–Š‡…‘’‡–‡–ƒ—–Š‘”‹–›ƒ›ƒŽŽ‘™‹–Š‹•„‡ŠƒŽˆǤ
”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ…‘’—Ž•‘”›Ž‹…‡…‡‹•‰”ƒ–‡†‹”‡•’‡…–‘ˆƒ›’ƒ–‡–—†‡”–Š‡ƒ–‡–…–ǡͳͻ͹Ͳǡ–Š‡‹…‘‡
„›™ƒ›‘ˆ”‘›ƒŽ–›ˆ‘”–Š‡’—”’‘•‡‘ˆƒŽŽ‘™‹‰†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ”‘›ƒŽ–›
—†‡”–Š‡–‡”•ƒ†…‘†‹–‹‘•‘ˆƒŽ‹…‡…‡•‡––Ž‡†„›–Š‡‘–”‘ŽŽ‡”—†‡”–Šƒ–…–ǣ
‘†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†—Ž‡••–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒ…‡”–‹ϐ‹…ƒ–‡‹–Š‡’”‡•…”‹„‡†ˆ‘”
ȋ ‘” ‘Ǥ ͳͲȌǡ †—Ž› •‹‰‡† „› –Š‡ ’”‡•…”‹„‡† ƒ—–Š‘”‹–›ǡ ƒŽ‘‰ ™‹–Š –Š‡ ”‡–—” ‘ˆ ‹…‘‡ •‡––‹‰ ˆ‘”–Š •—…Š
’ƒ”–‹…—Žƒ”•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
‘†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹”‡•’‡…–‘ˆƒ›‹…‘‡‡ƒ”‡†ˆ”‘ƒ›•‘—”…‡‘—–•‹†‡†‹ƒǡ
—Ž‡••–Š‡ƒ••‡••‡‡ˆ—”‹•Š‡•ƒ…‡”–‹ϐ‹…ƒ–‡‹–Š‡’”‡•…”‹„‡†ˆ‘”ȋ ‘”‘ǤͳͲȌǡˆ”‘–Š‡ƒ—–Š‘”‹–›‘”ƒ—–Š‘”‹–‹‡•ǡ
ƒ•ƒ›„‡’”‡•…”‹„‡†ǡƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡Ǥ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡȂ
ȋƒȌ Dz‘–”‘ŽŽ‡”dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋ„Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡ƒ–‡–•
…–ǡͳͻ͹ͲǢ
ȋ„Ȍ DzŽ—’•—dz‹…Ž—†‡•ƒƒ†˜ƒ…‡’ƒ›‡–‘ƒ……‘—–‘ˆ•—…Š”‘›ƒŽ–‹‡•™Š‹…Š‹•‘–”‡–—”ƒ„Ž‡Ǣ
ȋ…Ȍ Dz’ƒ–‡–dz‡ƒ•ƒ’ƒ–‡–ȋ‹…Ž—†‹‰ƒ’ƒ–‡–‘ˆƒ††‹–‹‘Ȍ‰”ƒ–‡†—†‡”–Š‡ƒ–‡–•…–ǡͳͻ͹ͲǢ
ȋ†Ȍ Dz’ƒ–‡–‡‡dz‡ƒ•–Š‡’‡”•‘ǡ„‡‹‰–Š‡–”—‡ƒ†ϐ‹”•–‹˜‡–‘”‘ˆ–Š‡‹˜‡–‹‘ǡ™Š‘•‡ƒ‡‹•‡–‡”‡†‘
–Š‡ ’ƒ–‡– ”‡‰‹•–‡”ƒ• –Š‡ ’ƒ–‡–‡‡ǡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ƒ–‡–• …–ǡ ͳͻ͹Ͳǡƒ† ‹…Ž—†‡•‡˜‡”›•—…Š
’‡”•‘ǡ„‡‹‰–Š‡–”—‡ƒ†ϐ‹”•–‹˜‡–‘”‘ˆ–Š‡‹˜‡–‹‘ǡ™Š‡”‡‘”‡–Šƒ‘‡’‡”•‘‹•”‡‰‹•–‡”‡†ƒ•
’ƒ–‡–‡‡—†‡”–Šƒ–…–‹”‡•’‡…–‘ˆ–Šƒ–’ƒ–‡–Ǣ
ȋ‡Ȍ Dz’ƒ–‡–‘ˆƒ††‹–‹‘dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋ“Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡
ƒ–‡–•…–ǡͳͻ͹ͲǢ
ȋˆȌ Dz’ƒ–‡–‡†ƒ”–‹…Ž‡dzƒ†Dz’ƒ–‡–‡†’”‘…‡••dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰•”‡•’‡…–‹˜‡Ž›ƒ••‹‰‡†–‘–Š‡‹…Žƒ—•‡
ȋ‘Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡ƒ–‡–•…–ǡͳͻ͹ͲǢ
ȋ‰Ȍ Dz”‘›ƒŽ–›dzǡ‹”‡•’‡…–‘ˆƒ’ƒ–‡–ǡ‡ƒ•…‘•‹†‡”ƒ–‹‘ȋ‹…Ž—†‹‰ƒ›Ž—’•—…‘•‹†‡”ƒ–‹‘„—–‡š…Ž—†‹‰
ƒ›…‘•‹†‡”ƒ–‹‘™Š‹…Š™‘—Ž†„‡–Š‡‹…‘‡‘ˆ–Š‡”‡…‹’‹‡–…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dzƒ’‹–ƒŽ‰ƒ‹•dz
‘”…‘•‹†‡”ƒ–‹‘ˆ‘”•ƒŽ‡‘ˆ’”‘†—…–ƒ—ˆƒ…–—”‡†™‹–Š–Š‡—•‡‘ˆ’ƒ–‡–‡†’”‘…‡••‘”‘ˆ–Š‡’ƒ–‡–‡†
ƒ”–‹…Ž‡ˆ‘”…‘‡”…‹ƒŽ—•‡Ȍˆ‘”Ǧ
ȋ‹Ȍ –Š‡–”ƒ•ˆ‡”‘ˆƒŽŽ‘”ƒ›”‹‰Š–•ȋ‹…Ž—†‹‰–Š‡‰”ƒ–‹‰‘ˆƒŽ‹…‡…‡Ȍ‹”‡•’‡…–‘ˆƒ’ƒ–‡–Ǣ‘”
ȋ‹‹Ȍ –Š‡‹’ƒ”–‹‰‘ˆƒ›‹ˆ‘”ƒ–‹‘…‘…‡”‹‰–Š‡™‘”‹‰‘ˆǡ‘”–Š‡—•‡‘ˆǡƒ’ƒ–‡–Ǣ‘”
ȋ‹‹‹Ȍ –Š‡—•‡‘ˆƒ›’ƒ–‡–Ǣ‘”
ȋ‹˜Ȍ –Š‡”‡†‡”‹‰‘ˆƒ›•‡”˜‹…‡•‹…‘‡…–‹‘™‹–Š–Š‡ƒ…–‹˜‹–‹‡•”‡ˆ‡””‡†–‘‹—„Ǧ…Žƒ—•‡•ȋ‹Ȍ–‘ȋ‹‹‹ȌǢ
ȋŠȌ Dz–”—‡ƒ†ϐ‹”•–‹˜‡–‘”dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹Žƒ—•‡ȋ›Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ʹ
‘ˆ–Š‡ƒ–‡–•…–ǡͳͻ͹ͲǤ
 378 Lesson 6 Ȉ EP-TL

Deduction in respect of interest on deposits in Savings Account [Section 80TTA]

‡…–‹‘ ͺͲ ’”‘˜‹†‡• †‡†—…–‹‘ –‘ ƒ ƒ••‡••‡‡ ȋ‘–Š‡” –Šƒ ”‡ˆ‡””‡† –‘ •‡…–‹‘ ͺͲȌ ‹†‹˜‹†—ƒŽ ‘” ƒ ‹†—
—†‹˜‹†‡† ˆƒ‹Ž› ™Š‘•‡ ‰”‘•• –‘–ƒŽ ‹…‘‡ ‹…Ž—†‡• ƒ› ‹…‘‡ „› ™ƒ› ‘ˆ ‹–‡”‡•– ‘ †‡’‘•‹–• ȋ‘– „‡‹‰ –‹‡
†‡’‘•‹–•Ȍ‹ƒ•ƒ˜‹‰•ƒ……‘—–™‹–ŠǦ
ȋƒȌ ƒ„ƒ‹‰…‘’ƒ›–‘™Š‹…Š–Š‡ƒ‹‰‡‰—Žƒ–‹‘…–ǡͳͻͶͻȋͳͲ‘ˆͳͻͶͻȌǡƒ’’Ž‹‡•ȋ‹…Ž—†‹‰ƒ›„ƒ
‘”„ƒ‹‰‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͷͳ‘ˆ–Šƒ–…–ȌǢ
ȋ„Ȍ ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‡‰ƒ‰‡† ‹ …ƒ””›‹‰ ‘ –Š‡ „—•‹‡•• ‘ˆ „ƒ‹‰ ȋ‹…Ž—†‹‰ ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ Žƒ†
‘”–‰ƒ‰‡„ƒ‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡Žƒ††‡˜‡Ž‘’‡–„ƒȌǢ‘”
ȋ…Ȍ ƒ‘•–ˆϐ‹…‡ƒ•†‡ϐ‹‡†‹…Žƒ—•‡ȋȌ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡†‹ƒ‘•–ˆϐ‹…‡…–ǡͳͺͻͺȋ͸‘ˆͳͺͻͺȌ
Š‡ƒš‹—ƒ‘—–‘ˆ†‡†—…–‹‘‹••ǤͳͲǡͲͲͲǤ

—”–Š‡”ǡ™Š‡”‡–Š‡‹…‘‡”‡ˆ‡””‡†–‘‹–Š‹••‡…–‹‘‹•†‡”‹˜‡†ˆ”‘ƒ›†‡’‘•‹–‹ƒ•ƒ˜‹‰•ƒ……‘—–Š‡Ž†„›ǡ‘”‘
„‡ŠƒŽˆ‘ˆǡƒϐ‹”ǡƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”ƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ǡ‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†—†‡”–Š‹••‡…–‹‘
‹”‡•’‡…–‘ˆ•—…Š‹…‘‡‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›’ƒ”–‡”‘ˆ–Š‡ϐ‹”‘”ƒ›‡„‡”‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘
‘”ƒ›‹†‹˜‹†—ƒŽ‘ˆ–Š‡„‘†›Ǥ

‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǦDz‹‡†‡’‘•‹–•dz‡ƒ•–Š‡†‡’‘•‹–•”‡’ƒ›ƒ„Ž‡‘‡š’‹”›‘ˆϐ‹š‡†’‡”‹‘†•Ǥ

Note ǣ†‡”‡…–‹‘ͳͲȋͳͷȌȋ‹Ȍǡ’‘•–‘ˆϐ‹…‡•ƒ˜‹‰•„ƒ‹–‡”‡•–‹•‡š‡’–—’–‘•Ǥ͵ǡͷͲͲǤ

Deduction in respect of interest on deposits in case of senior citizens (Section 80TTB)

Š‡”‡–Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆƒ•‡‹‘”…‹–‹œ‡ȋƒ••‡••‡‡Ȍ‹…Ž—†‡•ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘†‡’‘•‹–•™‹–Š
ƒ„ƒ‹‰…‘’ƒ›ǡƒ…‘Ǧ‘’‡”ƒ–‹˜‡„ƒ‘”‘•–ˆϐ‹…‡ǡ–Š‡”‡•ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ†‡†—…–‹‘ǣ
ȋƒȌ ‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ‘—–‘ˆ•—…Š‹…‘‡†‘‡•‘–‡š…‡‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡•ǤͷͲǡͲͲͲǡ–Š‡™Š‘Ž‡‘ˆ•—…Š
ƒ‘—–Ǣƒ†
ȋ„Ȍ ‹ƒ›‘–Š‡”…ƒ•‡ǡ•ǤͷͲǡͲͲͲǤ
‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹ˆ†‡’‘•‹–Š‡Ž†„›‘”‘„‡ŠƒŽˆ‘ˆƒϐ‹”ǡƒ‘”Ǥ
Dz‡‹‘”…‹–‹œ‡dz‡ƒ•ƒ‹†‹˜‹†—ƒŽ”‡•‹†‡–‹†‹ƒ™Š‘‹•‘ˆ–Š‡ƒ‰‡‘ˆ•‹š–››‡ƒ”•‘”‘”‡ƒ–ƒ›–‹‡†—”‹‰–Š‡
”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ

Illustration 13:

Š‡ƒš‹—ƒ‘—–‘ˆ†‡†—…–‹‘ƒŽŽ‘™‡†—Ȁ•ͺͲ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǡ™‹–Š”‡•’‡…––‘‹–‡”‡•–
‹…‘‡ˆ”‘†‡’‘•‹–•™‹–Š„ƒ•‘”’‘•–‘ˆϐ‹…‡‘”…‘Ǧ‘’‡”ƒ–‹˜‡„ƒ•‹•ǣ
ƒȌ •ǤͳͲǡͲͲͲ
„Ȍ •ǤʹͲǡͲͲͲ
…Ȍ •ǤͷͲǡͲͲͲ
†Ȍ ‹Ž
Solution: (c) Rs. 50,000

Deduction in case of a Person with Disability [Section 80U]

‡…–‹‘ͺͲ’”‘˜‹†‡•†‡†—…–‹‘–‘ƒ”‡•‹†‡–‹†‹˜‹†—ƒŽ™Š‘•—ˆˆ‡”•ˆ”‘ͶͲΨ‘”‘”‡‘ˆƒ›‘ˆ–Š‡†‹•ƒ„‹Ž‹–‹‡•ǡ
ƒ‡Ž›ǡ „Ž‹†‡••ǡ Ž‘™ ˜‹•‹‘ǡ Ž‡’”‘•›Ǧ…—”‡†ǡ Š‡ƒ”‹‰ ‹’ƒ‹”‡–ǡ Ž‘…‘‘–‘” †‹•ƒ„‹Ž‹–›ǡ ‡–ƒŽ ”‡–ƒ”†ƒ–‹‘ ƒ†
‡–ƒŽ‹ŽŽ‡••Ǥ
 Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 379

Š‡ƒ‘—–‘ˆ†‡†—…–‹‘‹••Ǥ͹ͷǡͲͲͲȋϐŽƒ–‹…ƒ•‡‘ˆ†‹•ƒ„‹Ž‹–›Ȍƒ†•ǤͳǡʹͷǡͲͲͲȋϐŽƒ–‹…ƒ•‡‘ˆ•‡˜‡”‡†‹•ƒ„‹Ž‹–›ǡ
„‡‹‰†‹•ƒ„‹Ž‹–›‘ˆƒ–Ž‡ƒ•–ͺͲΨȌǤ‘…Žƒ‹†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡƒ…‡”–‹ϐ‹…ƒ–‡‹••—‡†„›–Š‡‡†‹…ƒŽƒ—–Š‘”‹–›
ƒ—–Š‘”‹–›‹–Š‡ˆ‘”ƒ†ƒ‡”ǡƒ•ƒ›„‡’”‡•…”‹„‡†ǡ–‘„‡ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›‹•”‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†
ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻǡ‹”‡•’‡…–‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”ˆ‘”™Š‹…Š–Š‡†‡†—…–‹‘‹•
…Žƒ‹‡†Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡…‘†‹–‹‘‘ˆ†‹•ƒ„‹Ž‹–›”‡“—‹”‡•”‡ƒ••‡••‡–‘ˆ‹–•‡š–‡–ƒˆ–‡”ƒ’‡”‹‘†•–‹’—Žƒ–‡†‹–Š‡
ƒˆ‘”‡•ƒ‹† …‡”–‹ϐ‹…ƒ–‡ ‘ †‡†—…–‹‘ —†‡” –Š‹• •‡…–‹‘ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† ˆ‘” ƒ› ƒ••‡••‡– ›‡ƒ” ”‡Žƒ–‹‰ –‘ ƒ›
’”‡˜‹‘—•›‡ƒ”„‡‰‹‹‰ƒˆ–‡”–Š‡‡š’‹”›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”†—”‹‰™Š‹…Š–Š‡ƒˆ‘”‡•ƒ‹†…‡”–‹ϐ‹…ƒ–‡‘ˆ†‹•ƒ„‹Ž‹–›Šƒ†
‡š’‹”‡†ǡ —Ž‡•• ƒ ‡™ …‡”–‹ϐ‹…ƒ–‡ ‹• ‘„–ƒ‹‡† ˆ”‘ –Š‡ ‡†‹…ƒŽ ƒ—–Š‘”‹–› ‹ –Š‡ ˆ‘” ƒ† ƒ‡”ǡ ƒ• ƒ› „‡
’”‡•…”‹„‡†ǡƒ†ƒ…‘’›–Š‡”‡‘ˆ‹•ˆ—”‹•Š‡†ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻǤ
Explanation Ǧ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡȂ
ȋƒȌ Dz†‹•ƒ„‹Ž‹–›dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋ‹Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡‡”•‘•™‹–Š‹•ƒ„‹Ž‹–‹‡•
ȋ“—ƒŽ ’’‘”–—‹–‹‡•ǡ ”‘–‡…–‹‘ ‘ˆ ‹‰Š–• ƒ† —ŽŽ ƒ”–‹…‹’ƒ–‹‘Ȍ …–ǡ ͳͻͻͷ ƒ† ‹…Ž—†‡• Dzƒ—–‹•dzǡ
Dz…‡”‡„”ƒŽ’ƒŽ•›dzƒ†Dz—Ž–‹’Ž‡†‹•ƒ„‹Ž‹–‹‡•dz”‡ˆ‡””‡†–‘‹…Žƒ—•‡•ȋƒȌǡȋ…Ȍƒ†ȋŠȌ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡
ƒ–‹‘ƒŽ”—•–ˆ‘”‡Žˆƒ”‡‘ˆ‡”•‘•™‹–Š—–‹•ǡ‡”‡„”ƒŽƒŽ•›ǡ‡–ƒŽ‡–ƒ”†ƒ–‹‘ƒ†—Ž–‹’Ž‡
‹•ƒ„‹Ž‹–‹‡•…–ǡͳͻͻͻǢ
ȋ„Ȍ Dz‡†‹…ƒŽƒ—–Š‘”‹–›dz‡ƒ•–Š‡‡†‹…ƒŽƒ—–Š‘”‹–›ƒ•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ’Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡‡”•‘•
™‹–Š ‹•ƒ„‹Ž‹–‹‡• ȋ“—ƒŽ ’’‘”–—‹–‹‡•ǡ ”‘–‡…–‹‘ ‘ˆ ‹‰Š–• ƒ† —ŽŽ ƒ”–‹…‹’ƒ–‹‘Ȍ …–ǡ ͳͻͻͷǡ ‘” •—…Š
‘–Š‡” ‡†‹…ƒŽ ƒ—–Š‘”‹–› ƒ• ƒ›ǡ „› ‘–‹ϐ‹…ƒ–‹‘ǡ „‡ •’‡…‹ϐ‹‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ˆ‘” …‡”–‹ˆ›‹‰
Dzƒ—–‹•dzǡDz…‡”‡„”ƒŽ’ƒŽ•›dzǡDz—Ž–‹’Ž‡†‹•ƒ„‹Ž‹–‹‡•dzǡDz’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›dzƒ†Dz•‡˜‡”‡†‹•ƒ„‹Ž‹–›dz”‡ˆ‡””‡†
–‘‹…Žƒ—•‡•ȋƒȌǡȋ…ȌǡȋŠȌǡȋ“Ȍƒ†ȋ‘Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡ƒ–‹‘ƒŽ”—•–ˆ‘”‡Žˆƒ”‡‘ˆ‡”•‘•™‹–Š—–‹•ǡ
‡”‡„”ƒŽƒŽ•›ǡ‡–ƒŽ‡–ƒ”†ƒ–‹‘ƒ†—Ž–‹’Ž‡‹•ƒ„‹Ž‹–‹‡•…–ǡͳͻͻͻǢ
ȋ…Ȍ Dz’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›dz‡ƒ•ƒ’‡”•‘”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ–Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡‡”•‘•™‹–Š‹•ƒ„‹Ž‹–‹‡•
ȋ“—ƒŽ’’‘”–—‹–‹‡•ǡ”‘–‡…–‹‘‘ˆ‹‰Š–•ƒ† —ŽŽƒ”–‹…‹’ƒ–‹‘Ȍ…–ǡͳͻͻͷǡ‘”…Žƒ—•‡ȋŒȌ‘ˆ‡…–‹‘ʹ‘ˆ
–Š‡ƒ–‹‘ƒŽ”—•–ˆ‘”‡Žˆƒ”‡‘ˆ‡”•‘•™‹–Š—–‹•ǡ‡”‡„”ƒŽƒŽ•›ǡ‡–ƒŽ‡–ƒ”†ƒ–‹‘ƒ†—Ž–‹’Ž‡
‹•ƒ„‹Ž‹–‹‡•…–ǡͳͻͻͻǢ
ȋ†Ȍ Dz‡”•‘™‹–Š•‡˜‡”‡†‹•ƒ„‹Ž‹–›dz‡ƒ•ǣ
ȋ‹Ȍ ƒ’‡”•‘™‹–Š‡‹‰Š–›’‡”…‡–‘”‘”‡‘ˆ‘‡‘”‘”‡†‹•ƒ„‹Ž‹–‹‡•ǡƒ•”‡ˆ‡””‡†–‘‹—„Ǧ•‡…–‹‘ȋͶȌ
‘ˆ‡…–‹‘ͷ͸‘ˆ–Š‡‡”•‘•™‹–Š‹•ƒ„‹Ž‹–‹‡•ȋ“—ƒŽ’’‘”–—‹–‹‡•ǡ”‘–‡…–‹‘‘ˆ‹‰Š–•ƒ† —ŽŽ
ƒ”–‹…‹’ƒ–‹‘Ȍ…–ǡͳͻͻͷǢ‘”
ȋ‹‹Ȍ ƒ’‡”•‘™‹–Š•‡˜‡”‡†‹•ƒ„‹Ž‹–›”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‘Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡ƒ–‹‘ƒŽ”—•–ˆ‘”‡Žˆƒ”‡
‘ˆ‡”•‘•™‹–Š—–‹•ǡ‡”‡„”ƒŽƒŽ•›ǡ‡–ƒŽ‡–ƒ”†ƒ–‹‘ƒ†—Ž–‹’Ž‡‹•ƒ„‹Ž‹–‹‡•…–ǡͳͻͻͻǤ
REBATE AND RELIEF
ƒ††‹–‹‘–‘–Š‡’”‘˜‹•‹‘•ˆ‘”ƒ‰‰”‡‰ƒ–‹‘†‹•…—••‡†‡ƒ”Ž‹‡”ǡ‡…–‹‘͸͸Žƒ›•†‘™–Šƒ–‹…‘’—–‹‰–Š‡–‘–ƒŽ
‹…‘‡‘ˆƒ›ƒ••‡••‡‡ǡ–Š‡”‡•ŠƒŽŽ„‡‹…Ž—†‡†…‡”–ƒ‹‹–‡•‘ˆ‹…‘‡‘™Š‹…Š‘‹…‘‡Ǧ–ƒš‹•’ƒ›ƒ„Ž‡—†‡”
Šƒ’–‡”Ǥ……‘”†‹‰Ž›–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͺ͸™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡Ǥ

Share of Member of an Association of Persons or Body of Individuals in the Income of the

Association or Body of Individuals [Section 86]
‡…–‹‘ͺ͸’”‘˜‹†‡•–Šƒ–‘‹…‘‡–ƒš•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡„›–Š‡ƒ••‡••‡‡™Š‘‹•ƒ‡„‡”‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ
’‡”•‘•‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ȋ‘–Š‡”–Šƒǡƒ…‘’ƒ›‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‘”ƒ•‘…‹‡–›”‡‰‹•–‡”‡†—†‡”
–Š‡‘…‹‡–‹‡•‡‰‹•–”ƒ–‹‘…–ǡͳͺ͸Ͳ‘”—†‡”ƒ›Žƒ™…‘””‡•’‘†‹‰–‘–Šƒ–…–‹ˆ‘”…‡‹ƒ›’ƒ”–‘ˆ†‹ƒȌ‹
”‡•’‡…–‘ˆŠ‹••Šƒ”‡‹–Š‡‹…‘‡‘ˆ•—…Šƒ••‘…‹ƒ–‹‘‘”„‘†›…‘’—–‡†‹–Š‡ƒ‡”’”‘˜‹†‡†‹‡…–‹‘͸͹
‘ˆ–Š‡…–Ǥ
—”–Š‡”ǡ™Š‡”‡–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡‘”ƒ›Š‹‰Š‡””ƒ–‡—†‡”
ƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ–Š‡•Šƒ”‡‘ˆƒ‡„‡”…‘’—–‡†ƒ•ƒˆ‘”‡•ƒ‹†•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹Š‹•–‘–ƒŽ
‹…‘‡Ǥ‘™‡˜‡”ǡ‹ƒ›‘–Š‡”…ƒ•‡ǡ–Š‡•Šƒ”‡‘ˆƒ‡„‡”•ŠƒŽŽˆ‘”’ƒ”–‘ˆŠ‹•–‘–ƒŽ‹…‘‡Ǥ
 380 Lesson 6 Ȉ EP-TL

–‹•ƒŽ•‘’”‘˜‹†‡†–Šƒ–™Š‡”‡‘‹…‘‡Ǧ–ƒš‹•…Šƒ”‰‡ƒ„Ž‡‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›ǤŠ‡•Šƒ”‡
‘ˆƒ‡„‡”…‘’—–‡†ƒ•ƒˆ‘”‡•ƒ‹†•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•’ƒ”–‘ˆŠ‹•–‘–ƒŽ‹…‘‡ƒ†‘–Š‹‰…‘–ƒ‹‡†‹
–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›–‘–Š‡…ƒ•‡Ǥ

Rebate of Income Tax in case of certain Individuals [Section 87A]

‡…–‹‘ͺ͹’”‘˜‹†‡•”‡„ƒ–‡‘ˆ‹…‘‡–ƒš–‘”‡•‹†‡–‹†‹˜‹†—ƒŽǡ™Š‘•‡–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†•ǤͷǡͲͲǡͲͲͲǤ
Š‡ƒ‘—–‘ˆ”‡„ƒ–‡‹••ͳʹǡͷͲͲ‘”ͳͲͲΨ‘ˆ‹…‘‡–ƒš™Š‹…Š‡˜‡”‹•Ž‡••Ǥ–‹•†‡†—…–‹„Ž‡ˆ”‘‹…‘‡–ƒš„‡ˆ‘”‡
…ƒŽ…—Žƒ–‹‰Š‡ƒŽ–ŠƬ‡†—…ƒ–‹‘…‡••Ǥ

Relief when Salary is paid in Arrears or in Advance [Section 89]

‡…–‹‘ͺͻ’”‘˜‹†‡•”‡Ž‹‡ˆ–‘ƒ‹†‹˜‹†—ƒŽ™Š‘”‡…‡‹˜‡•ƒ›’‘”–‹‘‘ˆŠ‹••ƒŽƒ”›‹ƒ””‡ƒ”•‘”‹ƒ†˜ƒ…‡‘””‡…‡‹˜‡•
’”‘ϐ‹– ‹ Ž‹‡— ‘ˆ •ƒŽƒ”› †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ”Ǥ Š‡ ƒ••‡••‡‡ ƒ› ƒ’’Ž› –‘ –Š‡ ••‡••‹‰ ˆϐ‹…‡” ™Š‘ ‹• „‡‡
‡’‘™‡”‡† –‘ ‰”ƒ– ”‡Ž‹‡ˆ ‹ ƒ’’”‘’”‹ƒ–‡ …ƒ•‡• ‹ ƒ……‘”†ƒ…‡ ™‹–Š —Ž‡ ʹͳ ‘ˆ –Š‡ …‘‡Ǧ–ƒš —Ž‡•ǡ ͳͻ͸ʹǤ
‘™‡˜‡”ǡ ‘ •—…Š ”‡Ž‹‡ˆ •ŠƒŽŽ „‡ ‰”ƒ–‡† ‹ ”‡•’‡…– ‘ˆ ƒ› ƒ‘—– ”‡…‡‹˜‡† ‘” ”‡…‡‹˜ƒ„Ž‡ „› ƒ ƒ••‡••‡‡ ‘ Š‹•
˜‘Ž—–ƒ”› ”‡–‹”‡‡– ‘” –‡”‹ƒ–‹‘ ‘ˆ Š‹• •‡”˜‹…‡ǡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š ƒ› •…Š‡‡ ‘” •…Š‡‡• ‘ˆ ˜‘Ž—–ƒ”›
”‡–‹”‡‡–‘”‹–Š‡…ƒ•‡‘ˆƒ’—„Ž‹…•‡…–‘”…‘’ƒ›”‡ˆ‡””‡†–‘‹•—„…Žƒ—•‡ȋ‹Ȍ‘ˆ…Žƒ—•‡ȋͳͲȌ‘ˆ•‡…–‹‘ͳͲǡƒ
•…Š‡‡‘ˆ˜‘Ž—–ƒ”›•‡’ƒ”ƒ–‹‘ǡ‹ˆƒ‡š‡’–‹‘‹”‡•’‡…–‘ˆƒ›ƒ‘—–”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡‘•—…Š˜‘Ž—–ƒ”›
”‡–‹”‡‡–‘”–‡”‹ƒ–‹‘‘ˆŠ‹••‡”˜‹…‡‘”˜‘Ž—–ƒ”›•‡’ƒ”ƒ–‹‘Šƒ•„‡‡…Žƒ‹‡†„›–Š‡ƒ••‡••‡‡—†‡”…Žƒ—•‡
ȋͳͲȌ‘ˆ•‡…–‹‘ͳͲ‹”‡•’‡…–‘ˆ•—…Šǡ‘”ƒ›‘–Š‡”ǡƒ••‡••‡–›‡ƒ”Ǥ

Illustration 14:

”Ǥƒ™Š‘‹•ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›•—„‹––Š‡ˆ‘ŽŽ‘™‹‰‹ˆ‘”ƒ–‹‘Ǥ‘’—–‡ȋƒȌ–Š‡ƒšƒ„Ž‡…‘‡ȋ„Ȍ
–Š‡ƒšƒ›ƒ„Ž‡ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ

Particulars Amounts (Rs.)

ȋ‹Ȍ ƒŽƒ”›ȋ’‡”ƒ—Ȍ ͵ǡͲͲǡͲͲͲ
ȋ‹‹Ȍ ‡–”‡…‡‹˜‡† ͶͺǡͲͲͲ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 381

ȋ‹‹‹Ȍ ‹˜‹†‡†ˆ”‘‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–› ͳǡͲͲͲ

ȋ‹˜Ȍ –‡”‡•–‘ƒ˜‹‰•ƒ‡’‘•‹–• ͳͺǡͲͲͲ
ȋ˜Ȍ –‡”‡•–‘
‘˜‡”‡–•‡…—”‹–‹‡• ͳǡͲͲͲ
ȋ˜‹Ȍ ‹‹‰ˆ”‘‘––‡”‹‡•ȋ‰”‘••Ȍ ͷǡͲͲͲ
ȋ˜‹‹Ȍ ȋ••—‡Ȍ’—”…Šƒ•‡††—”‹‰–Š‡›‡ƒ” ͳͲǡͲͲͲ
ȋ˜‹‹‹Ȍ ‡’‘•‹–—†‡” …Š‡‡ ͵ͲǡͲͲͲ
‡‡ƒ”‡†ƒŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹‘ˆ•ǤͳͷǡͲͲͲ‘•ƒŽ‡‘ˆ‰‘Ž††—”‹‰–Š‡›‡ƒ”Ǥ
Solution:

A. Computation of Total Income Rs. Rs.

Income from Basic Salary ͵ǡͲͲǡͲͲͲ
‡••ǣ‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌȂ–ƒ†ƒ”†‡†—…–‹‘ ȋͷͲǡͲͲͲȌ
ʹǡͷͲǡͲͲͲ
Income from house property
‡–‡…‡‹˜‡† ͶͺǡͲͲͲ
Less : –ƒ–—–‘”›‡†—…–‹‘̷͵ͲΨ ȋͳͶǡͶͲͲȌ ͵͵ǡ͸ͲͲ
Capital Gains
‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹• ͳͷǡͲͲͲ
Income from other sources
‹˜‹†‡†ˆ”‘…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–› ͳǡͲͲͲ
–‡”‡•–‘•ƒ˜‹‰„ƒ†‡’‘•‹–• ͳͺǡͲͲͲ
–‡”‡•–‘
‘˜‡”‡–‡…—”‹–‹‡• ͳǡͲͲͲ
‹‹‰ˆ”‘‘––‡”‹‡• ͷǡͲͲͲ ʹͷǡͲͲͲ
Gross Total Income 3,23,600
Less :‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ
ȋ‹Ȍ†‡”•‡…–‹‘ͺͲ•ǤȋͳͲǡͲͲͲΪ͵ͲǡͲͲͲȌ ȋͶͲͲͲͲȌ
ȋ‹‹Ȍ†‡”•‡…–‹‘ͺͲ ȋͳͲǡͲͲͲȌ
ȋ‹‹‹Ȍ†‡”•‡…–‹‘ͺͲ ȋͷͲǡͲͲͲȌ ȋͳǡͲͲǡͲͲͲȌ
Total Income 2,23,600
B. Computation of Tax on Total Income
ƒš‘™‹‹‰ˆ”‘Ž‘––‡”‹‡•ȋ͵ͲΨ‘ˆ•ǤͷǡͲͲͲȌ ͳǡͷͲͲ
ƒš‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋʹͲΨ‘ˆ•ǤͳͷǡͲͲͲȌ ͵ǡͲͲͲ
ƒŽƒ…‡‘ˆ‘–ƒŽ…‘‡•ǤʹǡͲ͵ǡ͸ͲͲ ‹Ž
ƒšƒ›ƒ„Ž‡ǡ„”‹‰–‘–ƒŽ‹…‘‡„‡Ž‘™•ǤʹǡͷͲǡͲͲͲ ‹Ž

‘–‡ǣŠ‡•‘Ž—–‹‘Šƒ•„‡‡ƒ†‡ƒ••—‹‰–Š‡ƒ••‡••‡‡Šƒ•‘–‘’–‡†–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡
…‘‡–ƒš…–ǡͳͻ͸ͳǤ
382 Lesson 6 Ȉ EP-TL

Illustration 15:

ƒŠ—Ž™Š‘‹•ƒ”‡•‹†‡–‹†‹ƒǡ‹•ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›Ǥ‡’”‘˜‹†‡•–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•‘ˆŠ‹•‹…‘‡

ˆ‘”–Š‡›‡ƒ”‡†‡†͵ͳǤ͵ǤʹͲʹʹǤ

ȋƒȌ ƒŽƒ”›ˆ‘”™‘”‹‰ƒ•ƒ…ƒ„Ž‡‘’‡”ƒ–‘”ȋ’‡”‘–ŠȌ ͳͺǡͲͲͲ

ȋ„Ȍ –‡”‡•–‘‰‘˜‡”‡–•‡…—”‹–‹‡•ȋ‰”‘••Ȍ ͶͷǡͲͲͲ
ȋ…Ȍ ‹˜‹†‡†ˆ”‘†‹ƒ‘’ƒ› ͷǡͲͲͲ
ȋ†Ȍ ‘‘”ƒ”‹—ˆ”‘•…Š‘‘Ž‘ˆ‘”’Šƒƒ‰‡ˆ‘”‰‹˜‹‰Š‹••‡”˜‹…‡ ͶͻǡͲͲͲ

‡ Šƒ• †‘ƒ–‡† •Ǥ ʹͲǡͲͲͲ –‘ –Š‡ •…Š‘‘Ž ˆ‘” ‘”’Šƒƒ‰‡ ™Š‹…Š ‹• ƒ’’”‘˜‡† ƒ• ƒ …Šƒ”‹–ƒ„Ž‡ ‹•–‹–—–‹‘ ƒ†
…‘–”‹„—–‡† •Ǥ ʹǡͲͲͲ –‘ ”‹‡ ‹‹•–‡” ƒ–‹‘ƒŽ ‡Ž‹‡ˆ —†Ǥ ‡ Šƒ• ƒŽ•‘ ’ƒ‹† •Ǥ͵ǡͲͲͲ „› …”‡†‹– …ƒ”† ƒ•
’”‡‹—‘ˆ‡†‹…Žƒ‹’‘Ž‹…›Ǥ‹•ˆƒ–Š‡”‹•ƒŽ•‘ƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›ƒ†‹•†‡’‡†‡–‘Š‹ˆ‘”‡†‹…ƒŽ
–”‡ƒ–‡–ƒ†”‡Šƒ„‹Ž‹–ƒ–‹‘ǤƒŠ—Ž•’‡†••ǤͺǡͲͲͲ†—”‹‰–Š‡›‡ƒ”‘Š‹Ǥ
‘’—–‡–Š‡‘–ƒŽ…‘‡ˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵ǡƒ••—‹‰Š‡Šƒ•†‡’‘•‹–‡†•ǤʹͲǡͲͲͲ‹—„Ž‹…
”‘˜‹†‡– —†……‘—–Ǥ

Solution:

Computation of Total Income for the Assessment Year 2022-23

Income from salary Rs. Rs. Rs.

”‘••ƒŽƒ”› ʹǡͳ͸ǡͲͲͲ
Lessǣ‡†—…–‹‘ȋ–ƒ†ƒ”†Ȍ ȋͷͲǡͲͲͲȌ ͳǡ͸͸ǡͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡•
–‡”‡•–‘
‘˜‡”‡–‡…—”‹–‹‡• ͶͷǡͲͲͲ
‹˜‹†‡†ˆ”‘†‹ƒ‘’ƒ› š‡’–
‘‘”ƒ”‹— ͶͻǡͲͲͲ ͻͶǡͲͲͲ
Gross Total Income 2,60,000
Less ǣ‡†—…–‹‘•ǣ
†‡”•‡…–‹‘ͺͲ ʹͲǡͲͲͲ
ȋ‹‹Ȍ †‡”•‡…–‹‘ͺͲ ͵ǡͲͲͲ
ȋ‹‹‹Ȍ †‡”•‡…–‹‘ͺͲ ͹ͷǡͲͲͲ
ȋ‹˜Ȍ †‡”•‡…–‹‘ͺͲ ͹ͷǡͲͲͲ
ȋ˜Ȍ †‡”•‡…–‹‘ͺͲ

”‹‡‹‹•–‡”‡Ž‹‡ˆ —†ȋͳͲͲΨ‘ˆ•ǤʹǡͲͲͲȌ ʹǡͲͲͲ

”’Šƒƒ‰‡ …Š‘‘Ž ȋͷͲΨ ‘ˆ •Ǥ ͺǡ͹ͲͲȌ ͳͲΨ ‘ˆ Ͷǡ͵ͷͲ ͸ǡ͵ͷͲ ȋͳǡ͹ͻǡ͵ͷͲȌ
ͺ͹ǡͲͲͲ•Ǥȋʹǡ͸ͲǡͲͲͲǦͳǡ͹͵ǡͲͲͲȌ
Total Income 80,650

‘–‡ǣŠ‡•‘Ž—–‹‘Šƒ•„‡‡ƒ†‡ƒ••—‹‰–Š‡ƒ••‡••‡‡Šƒ•‘–‘’–‡†–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͳͷ‘ˆ
–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 383

Illustration 16:

‘ŽŽ‘™‹‰ƒ”‡–Š‡’ƒ”–‹…—Žƒ”•‘ˆ‹…‘‡‘ˆ”Ǥƒǡ™Š‘‹•͹Ͳ›‡ƒ”•‘Ž†”‡•‹†‡–‹†‹ƒǡˆ‘”–Š‡••‡••‡–›‡ƒ”
ʹͲʹʹǦʹ͵ǣ

”‘••‘–ƒŽ…‘‡•ǤͺǡͳͲǡͲͶͲ™Š‹…Š‹…Ž—†‡•Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹‘ˆ•ǤʹǡͷͷǡͲͲͲǡŠ‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹‘ˆ
•ǤͺͺǡͲͲͲǡ‹–‡”‡•–‹…‘‡‘ˆ•ǤͳʹǡͲͲͲˆ”‘•ƒ˜‹‰•„ƒ†‡’‘•‹–•™‹–Š„ƒ•Ǥ”Ǥƒ‹˜‡•–‡†‹ •Ǥ
ͳǡͶͲǡͲͲͲƒ†ƒŽ•‘’ƒ‹†ƒ‡†‹…ƒŽ‹•—”ƒ…‡’”‡‹—•Ǥ͵ͳǡͲͲͲǤ‘’—–‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ”ǤƒǤ

Solution:

Computation of Total Income for the Assessment Year 2022-23

Particulars Rs.

”‘••–‘–ƒŽ‹…‘‡ ͺǡͳͲǡͲͶͲ
Lessǣ‡†—…–‹‘•ǣ
†‡”•‡…–‹‘ͺͲ ͳǡͶͲǡͲͲͲ
†‡”•‡…–‹‘ͺͲ ͵ͳǡͲͲͲ
†‡”•‡…–‹‘ͺͲ ͳͲǡͲͲͲ
Total income 6,29,040

‘–‡ǣŠ‡•‘Ž—–‹‘Šƒ•„‡‡ƒ†‡ƒ••—‹‰–Š‡ƒ••‡••‡‡Šƒ•‘–‘’–‡†–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡
…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ

LESSON ROUND-UP

Ȉ ‡…–‹‘ ͺͲǣ ‡†—…–‹‘ ‘ Ž‹ˆ‡ ‹•—”ƒ…‡ ’”‡‹ƒǡ …‘–”‹„—–‹‘ –‘ ’”‘˜‹†‡– ˆ—†ǡ ‡–…Ǥ ƒ˜ƒ‹Žƒ„Ž‡ –‘
‹†‹˜‹†—ƒŽȀ ˆ‘”ƒƒš‹—ƒ‘—–‘ˆ•ǤͳǡͷͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘ˆ‘”…‘–”‹„—–‹‘–‘’‡•‹‘ˆ—†Ǧ˜ƒ‹Žƒ„Ž‡–‘‹†‹˜‹†—ƒŽˆ‘”ƒš‹—ƒ‘—–
‘ˆ•ǤͳͷͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‘–”‹„—–‹‘–‘’‡•‹‘•…Š‡‡‘ˆ‡–”ƒŽ
‘˜‡”‡–Ǧƒ˜ƒ‹Žƒ„Ž‡
–‘‹†‹˜‹†—ƒŽǤ

Ȉ ‡…–‹‘ͺͲǣ‹‹–‘†‡†—…–‹‘•—†‡”‡…–‹‘•ͺͲǡͺͲƒ†ͺͲǦ…ƒ‘–‡š…‡‡†•ǤͳǡͷͲǡͲͲͲǤ
††‹–‹‘ƒŽ†‡†—…–‹‘ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͺͲȋͳȌ‘ˆƒš‹—•ǤͷͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲ
ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ‹˜‡•–‡–ƒ†‡—†‡”ƒ›‡“—‹–›•ƒ˜‹‰•…Š‡‡ǣ˜ƒ‹Žƒ„Ž‡–‘
”‡•‹†‡–‹†‹˜‹†—ƒŽ•—„Œ‡…––‘ƒš‹—‘ˆ•ǤʹͷǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ‡†‹…ƒŽ‹•—”ƒ…‡’”‡‹ƒǦ˜ƒ‹Žƒ„Ž‡–‘‹†‹˜‹†—ƒŽȀ Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆƒ‹–‡ƒ…‡‹…Ž—†‹‰‡†‹…ƒŽ–”‡ƒ–‡–‘ˆƒ†‡’‡†ƒ–™Š‘‹•ƒ
’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›‘”•‡˜‡”‡†‹•ƒ„‹Ž‹–›Ǥ

Ȉ ‡…–‹‘ͺͲ”‡ƒ†™‹–Š—Ž‡ͳͳǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ‡†‹…ƒŽ–”‡ƒ–‡–ǡ‡–…Ǥǣ˜ƒ‹Žƒ„Ž‡–‘‡•‹†‡–
‹†‹˜‹†—ƒŽȀ”‡•‹†‡– Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ”‡’ƒ›‡–‘ˆŽ‘ƒ–ƒ‡ˆ‘”Š‹‰Š‡”‡†—…ƒ–‹‘ǣ˜ƒ‹Žƒ„Ž‡–‘‹†‹˜‹†—ƒŽǤ
384 Lesson 6 Ȉ EP-TL

Ȉ ‡…–‹‘ͺͲ
ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ†‘ƒ–‹‘•–‘…‡”–ƒ‹ˆ—†•ǡ…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘•ǡ‡–…Ǥ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ
ƒ••‡••‡‡••—„Œ‡…––‘ƒš‹—‘ˆͷͲΨ‘ˆ“—ƒŽ‹ˆ›‹‰ƒ‘—–ǡͳͲͲΨƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ

Ȉ ‡…–‹‘ͺͲ

ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ”‡–’ƒ‹†˜ƒ‹Žƒ„Ž‡–‘‹†‹˜‹†—ƒŽˆ‘”ƒƒš‹—‘ˆ•Ǥ͸ͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲ

ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹†‘ƒ–‹‘•ˆ‘”•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š‘””—”ƒŽ†‡˜‡Ž‘’‡–Ǥ

Ȉ ‡…–‹‘ͺͲ

ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‘–”‹„—–‹‘•‰‹˜‡„›…‘’ƒ‹‡•–‘’‘Ž‹–‹…ƒŽ’ƒ”–‹‡•Ǥ

Ȉ ‡…–‹‘ͺͲ

ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‘–”‹„—–‹‘•‰‹˜‡„›ƒ›’‡”•‘–‘’‘Ž‹–‹…ƒŽ’ƒ”–‹‡•Ǥ

Ȉ ‡…–‹‘ ͺͲǦǣ ‡†—…–‹‘ ‹ ”‡•’‡…– ‘ˆ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ˆ”‘ ‹†—•–”‹ƒŽ —†‡”–ƒ‹‰• ‘” ‡–‡”’”‹•‡
‡‰ƒ‰‡†‹‹ˆ”ƒ•–”—…–—”‡†‡˜‡Ž‘’‡–Ǥ

Ȉ ‡…–‹‘ ͺͲǦǣ ‡†—…–‹‘ ‹ ”‡•’‡…– ‘ˆ ’”‘ϐ‹– ƒ† ‰ƒ‹• „› ƒ —†‡”–ƒ‹‰ ƒ ‡–‡”’”‹•‡ ‡‰ƒ‰‡† ‹
†‡˜‡Ž‘’‡–‘ˆ’‡…‹ƒŽ…‘‘‹…‘‡Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆŽ‹‰‹„Ž‡•–ƒ”–Ǧ—’Ǥ

Ȉ ‡…–‹‘ͺͲǦǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘…‡”–ƒ‹‹†—•–”‹ƒŽ—†‡”–ƒ‹‰•‘–Š‡”–Šƒ
‹ˆ”ƒ•–”—…–—”‡†‡˜‡Ž‘’‡–—†‡”–ƒ‹‰•Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘•‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘Š‘—•‹‰’”‘Œ‡…–•Ǥ

Ȉ ‡…–‹‘ ͺͲǦǣ ’‡…‹ƒŽ ’”‘˜‹•‹‘• ‹ ”‡•’‡…– ‘ˆ …‡”–ƒ‹ —†‡”–ƒ‹‰• ‘” ‡–‡”’”‹•‡• ‹ …‡”–ƒ‹ •’‡…‹ƒŽ
…ƒ–‡‰‘”›–ƒ–‡•Ǥ

Ȉ ‡…–‹‘ͺͲǦ ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘–Š‡„—•‹‡••‘ˆ…‘ŽŽ‡…–‹‰ƒ†’”‘…‡••‹‰
„‹‘Ǧ†‡‰”ƒ†ƒ„Ž‡™ƒ•–‡Ǧ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽƒ••‡••‡‡•…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ…‘ŽŽ‡…–‹‰ƒ†’”‘…‡••‹‰
„‹‘Ǧ†‡‰”ƒ†ƒ„Ž‡™ƒ•–‡Ǥ

Ȉ ‡…–‹‘ͺͲǦ ǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ‡’Ž‘›‡–‘ˆ‡™™‘”‡Ǧ˜ƒ‹Žƒ„Ž‡–‘†‹ƒ…‘’ƒ›‘ˆ

͵ͲΨ‘ˆƒ††‹–‹‘ƒŽ™ƒ‰‡•’ƒ‹†–‘‡™”‡‰—Žƒ”™‘”‡Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹…‘‡•‘ˆˆˆ•Š‘”‡ƒ‹‰‹–•ǦͳͲͲΨ‘ˆ…‡”–ƒ‹‹…‘‡
ˆ‘”ͷ›‡ƒ”•ǡͷͲΨ‘ˆ•—…Š‹…‘‡ˆ‘”ͷ›‡ƒ”•Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹–‡”Ǧ…‘”’‘”ƒ–‡†‹˜‹†‡†•

Ȉ ‡…–‹‘ ͺͲǣ ‡†—…–‹‘ ‹ ”‡•’‡…– ‘ˆ ‹…‘‡ ‘ˆ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–‹‡• Ǧ ’‡…‹ϐ‹‡† ‹…‘‡• •—„Œ‡…– –‘
ƒ‘—–•’‡…‹ϐ‹‡†‹•—„•‡…–‹‘ȋʹȌǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‘ˆ•’‡…‹ϐ‹‡†‹…‘‡‘ˆ’”‘†—…‡”…‘’ƒ›Ǥ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ”‘›ƒŽ–›‹…‘‡ǡ‡–…Ǥǡ‘ˆƒ—–Š‘”•‘ˆ…‡”–ƒ‹„‘‘•‘–Š‡”–Šƒ–‡š–
„‘‘•Ǧ˜ƒ‹Žƒ„Ž‡–‘”‡•‹†‡–‹†‹˜‹†—ƒŽǡˆ‘”ƒƒš‹—†‡†—…–‹‘‘ˆ•Ǥ͵ǡͲͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ”‘›ƒŽ–›‘’ƒ–‡–•Ǧ˜ƒ‹Žƒ„Ž‡–‘‡•‹†‡–†‹˜‹†—ƒŽǡƒš‹—‘ˆ
•Ǥ͵ǡͲͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹”‡•’‡…–‘ˆ‹–‡”‡•–‘†‡’‘•‹–•‹•ƒ˜‹‰•ƒ……‘—–Ǧ˜ƒ‹Žƒ„Ž‡–‘†‹˜‹†—ƒŽȀ
 —’–‘•ǤͳͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‘–‹‡†‡’‘•‹–Ǧ‘•‡‹‘”…‹–‹œ‡—’–‘•ǤͷͲǡͲͲͲǤ

Ȉ ‡…–‹‘ͺͲǣ‡†—…–‹‘‹…ƒ•‡‘ˆƒ’‡”•‘™‹–Š†‹•ƒ„‹Ž‹–›Ǧ˜ƒ‹Žƒ„Ž‡–‘‡•‹†‡–‹†‹˜‹†—ƒŽ•—„Œ‡…––‘
ƒš‹—‘ˆ•ǤͳʹͷǡͲͲͲ
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 385

TEST YOURSELF

ȋŠ‡•‡ƒ”‡‡ƒ–ˆ‘””‡…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘ǤȌ

Multiple Choice Questions “MCQs”

ͳǤ ‡†—…–‹‘—Ȁ•ͺͲǡ‹”‡•’‡…–‘ˆ‹ˆ‡•—”ƒ…‡”‡‹—ǡ‘–”‹„—–‹‘–‘”‘˜‹†‡– —†‡–…Ǥǡ‹•ƒŽŽ‘™‡†
–‘ǫ
ƒȌ ›ƒ••‡••‡‡
„Ȍ ‹†‹˜‹†—ƒŽ
…Ȍ ‹†‹˜‹†—ƒŽȀ
†Ȍ ‹†‹˜‹†—ƒŽȀ ™Š‘‹•”‡•‹†‡–‹†‹ƒ
•™‡”ǣȋ†Ȍ
ʹǤ Š‡ϐŽƒ–ƒ‘—–‘ˆ†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ‹•Ǧ
ƒȌ•ǤͷͲǡͲͲͲƒ†•Ǥ͹ͷǡͲͲͲ
„Ȍ•Ǥ͹ͷǡͲͲͲƒ†•ǤͳǡͲͲǡͲͲͲ
…Ȍ•Ǥ͹ͷǡͲͲͲƒ†•ǤͳǡͳͲǡͲͲͲ
†Ȍ•Ǥ͹ͷǡͲͲͲƒ†•ǤͳǡʹͷǡͲͲͲ
•™‡”ǣȋ†Ȍ
͵Ǥ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•…‘˜‡”‡†—†‡”•‡…–‹‘ͺͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳȂ
ƒȌ ‡’ƒ›‡–‘ˆŽ‘ƒ–ƒ‡ˆ‘”Š‹‰Š‡”‡†—…ƒ–‹‘
„Ȍ ‡†‹…ƒŽ–”‡ƒ–‡–‘ˆŠƒ†‹…ƒ’’‡††‡’‡†‡–
…Ȍ ‡†‹…ƒŽ•—”ƒ…‡”‡‹—
†Ȍ ‡‹„—”•‡‡–‘ˆ‡†‹…ƒŽ‡š’‡•‡•
•™‡”ǣȋ…Ȍ
ͶǤ ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ…ƒ„‡…Žƒ‹‡†ˆ‘”‹–‡”‡•–‘Ž‘ƒˆ‘”
ƒȌ ›…‘—”•‡‘ˆŠ‹‰Š‡”‡†—…ƒ–‹‘
„Ȍ Ž›’‘•–‰”ƒ†—ƒ–‡…‘—”•‡•
…Ȍ Ž›‰”ƒ†—ƒ–‡…‘—”•‡•
†Ȍ ›…‘—”•‡‘ˆ•–—†›ƒˆ–‡”’ƒ••‹‰–Š‡‡‹‘”‡…‘†ƒ”›šƒ‹ƒ–‹‘‘”‹–•‡“—‹˜ƒŽ‡–ˆ”‘ƒ›
”‡…‘‰‹•‡†•…Š‘‘Žǡ„‘ƒ”†‘”—‹˜‡”•‹–›
•™‡”ǣȋ†Ȍ
ͷǤ ƒš‹—“—ƒŽ‹ˆ›‹‰Ž‹‹–ˆ‘”†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ‹•Ǧ
ƒȌ •Ǥ ͷͲǡͲͲͲ
„Ȍ •Ǥ ͳǡͳͲǡͲͲͲ
…Ȍ •Ǥ ͳǡͲͲǡͲͲͲ
†Ȍ •Ǥ ͳǡͷͲǡͲͲͲ
•™‡”ǣȋ†Ȍ
386 Lesson 6 Ȉ EP-TL

͸Ǥ ‡†—…–‹‘—Ȁ•ͺͲ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳ…ƒ„‡…Žƒ‹‡†„›̴̴̴̴̴̴̴̴̴̴̴

ƒȌ†‹˜‹†—ƒŽƒ† ‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
„Ȍ†‹˜‹†—ƒŽƒ† ‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳǤ
…ȌŽŽƒ••‡••‡‡
†Ȍ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣ„
͹Ǥ …‘‡ƒš…–ǡͳͻ͸ͳǡ†‡†—…–‹‘—†‡”•‡…–‹‘•ͺͲ–‘ͺͲ…ƒ‘–‡š…‡‡†̴̴̴̴̴̴̴̴̴̴
ƒȌ
”‘••–‘–ƒŽ‹…‘‡
„Ȍ ‘–ƒŽ‹…‘‡
…Ȍ …‘‡ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘
†Ȍ …‘‡ˆ”‘Š‘—•‡’”‘’‡”–›
•™‡”ǣƒ
ͺǤ ‡†—…–‹‘…ƒ„‡…Žƒ‹‡†ˆ‘”ƒ‘—–†‡’‘•‹–‡†—†‡”—ƒ›ƒ•ƒ”‹†Š‹……‘—–—†‡”•‡…–‹‘̴̴̴̴̴‘ˆ
–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
ƒȌ ͺͲ
„Ȍ ͺͲ
…Ȍ ͺͲ
†Ȍ ͺͲ
•™‡”ǣ„
ͻǤ Šƒ’–‡”Ǧ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ†‡ƒŽ•™‹–Šǣ
ƒȌ ‡†—…–‹‘
„Ȍ š‡’–‹‘
…Ȍ ƒ””›ˆ‘”™ƒ”†ƒ†•‡–Ǧ‘ˆˆ‘ˆŽ‘••‡•
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣƒ
ͳͲǤ ‘ƒ–‹‘‘ǯ•ƒ–‹‘ƒŽ‡Ž‹‡ˆ —†‹•†‡†—…–‹„Ž‡ͳͲͲΨ‘—–‘ˆ–Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ǡ
—†‡”•‡…–‹‘̴̴̴̴̴̴̴‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ
ƒȌ ͺͲ
„Ȍ ͺͲ
…Ȍ ͺͲ

†Ȍ ͺͲ

•™‡”ǣ…
Lesson 6 Ȉ‡†—…–‹‘•ˆ”‘
”‘••‘–ƒŽ…‘‡ǡ‡„ƒ–‡ƒ†‡Ž‹‡ˆ 387

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

 —–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
 —„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
 —–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 —„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES

Ȉ Income Tax Act, 1961:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š

Ȉ Income Tax Rules, 1962ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•ǦͷͿͼ͸Ǥƒ•’š
Ȉ Circulars:https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
388 Lesson 6 Ȉ EP-TL
 Computation of Total Income and
Lesson 7 Tax Liability of Various Entities

Key Concepts One Learning Objectives

Should Know
To understand
Ȉ ‹†—†‹˜‹†‡†
ƒ‹Ž‹‡•Ǯ ǯ Ȉ Š‡‘’—–ƒ–‹‘‘ˆƒšƒ–‹‘‘ˆ†‹˜‹†—ƒŽ•
Ȉ ‹” Ȉ Šƒ–‹•ƒ‹†—†‹˜‹†‡† ƒ‹Ž›Ǯ ǯǫ
Ȉ ƒ”–‡” Ȉ ‘™ …‘‡•‹–‘‡š‹•–‡…‡ǫ
Ȉ ƒ”–‡”•Š‹’ Ȉ Š‡ƒ†‘™ …ƒ„‡’ƒ”–‹–‹‘‡†ǫ
Ȉ Ž–‡”ƒ–‡‹‹— Ȉ Šƒ–ƒ”‡–Š‡ƒš‹’Ž‹…ƒ–‹‘•„‡ˆ‘”‡ƒ†ƒˆ–‡”’ƒ”–‹–‹‘‘ˆ ǫ
ƒšǮǯ
Ȉ ‘‘”‘ϐ‹– Ȉ Šƒ–‹•ƒ”–‡”•Š‹’ ‹”ǫ
Ȉ ••‘…‹ƒ–‹‘‘ˆ‡”•‘ Ȉ Šƒ–ƒ”‡–Š‡ƒš‹’Ž‹…ƒ–‹‘•‹–Š‡Šƒ†•‘ˆƒ”–‡”•ƒ† ‹”ǫ
Ǯǯ Ȉ Šƒ–ƒ”‡†‹••‹„Ž‡š’‡•‡•Ȁƒ†‹••‹„Ž‡š’‡•‡•™Š‹Ž‡
Ȉ ‘†›‘ˆ†‹˜‹†—ƒŽ …ƒŽ…—Žƒ–‹‰–Š‡‘‘”‘ϐ‹–‘ˆ–Š‡ ‹”ǫ
Ǯǯ Ȉ Šƒ–‹•‘‘”‘ϐ‹–ǫ
Ȉ ‘Ž‹–‹…ƒŽƒ”–‹‡•
Ȉ Šƒ–ƒ”‡–Š‡’”‘˜‹•‹‘•‘ˆŽ–‡”ƒ–‡‹‹—ƒšǮǯǫ
Ȉ Ž‡…–‘”ƒŽ”—•–•
Ȉ Šƒ–‹•••‘…‹ƒ–‹‘‘ˆ‡”•‘•ƒ†Š‘™‹–‹•ˆ‘”‡†ǫ
Ȉ Šƒ–‹•–Š‡‡–Š‘†‘ˆ…‘’—–ƒ–‹‘‘ˆ•Šƒ”‡‘ˆƒ‡„‡”‘ˆǫ
Ȉ Šƒ–ƒ”‡‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡•ƒ†Š‘™–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ
‘‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•‹•†‡–‡”‹‡†ǫ
Ȉ ”‘˜‹•‹‘•”‡Žƒ–‡†–‘‘Ž‹–‹…ƒŽƒ”–‹‡•
Ȉ ”‘˜‹•‹‘•”‡Žƒ–‡†–‘Ž‡…–‘”ƒŽ”—•–•
Ȉ ‡‰‹•–”ƒ–‹‘‘ˆ–”—•–—Ȁ•ͳʹȀͳʹȀͳʹ

Lesson Outline
Ȉ –”‘†—…–‹‘ Ȉ ‡™ƒšƒ–‹‘›•–‡ˆ‘”
Ȉ ‡™ƒšƒ–‹‘›•–‡ˆ‘” ‡•‹†‡–‘Ǧ‘’‡”ƒ–‹˜‡
†‹˜‹†—ƒŽƬ  ‘…‹‡–‹‡•
Ȉ ƒšƒ–‹‘‘ˆ†‹˜‹†—ƒŽ•
Ȉ ƒšƒ–‹‘‘ˆ‹†—†‹˜‹†‡†
ƒ‹Ž‹‡•Ǯ ǯ
Ȉ ”‘˜‹•‹‘•”‡Žƒ–‡†–‘‘Ž‹–‹…ƒŽ
ƒ”–‹‡•
Ȉ ”‘˜‹•‹‘•”‡Žƒ–‡†–‘
Ž‡…–‘”ƒŽ”—•–•
Ȉ ‘’—–ƒ–‹‘‘ˆ…‘‡‘ˆ–Š‡
 Ȉ ‡‰‹•–”ƒ–‹‘‘ˆ–”—•–—Ȁ•
ͳʹȀͳʹȀͳʹ
Ȉ ƒšƒ–‹‘‘ˆ ‹”•
Ȉ 
Ȉ Ž–‡”ƒ–‡‹‹—ƒšǮǯ
Ȉ 
Ȉ ƒšƒ–‹‘‘ˆ••‘…‹ƒ–‹‘‘ˆ
‡”•‘•Ȁ‘†›‘ˆ†‹˜‹†—ƒŽ Ȉ   

Ȉ ƒšƒ–‹‘‘ˆ‘Ǧ’‡”ƒ–‹˜‡ Ȉ  
‘…‹‡–‹‡•
 390 Lesson 7 Ȉ EP-TL

INTRODUCTION
…‘‡ ƒš ‹• ƒ …Šƒ”‰‡ ‘ –Š‡ ••‡••‡‡ǯ• …‘‡Ǥ …‘‡ ƒš Žƒ™ Žƒ›• †‘™ –Š‡ ’”‘˜‹•‹‘• ˆ‘” …‘’—–‹‰ –Š‡
–ƒšƒ„Ž‡‹…‘‡‘™Š‹…Š–ƒš‹•–‘„‡…Šƒ”‰‡†Ǥƒšƒ„Ž‡‹…‘‡‘ˆƒƒ••‡••‡‡•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰
ƒ‡”ǣ
ͳǤ ‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ–Š‡’‡”•‘ƒ•’‡”•‡…–‹‘͸‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳȋǮ–Š‡…–ǯȌǤ
ʹǤ ƒŽ…—Žƒ–‡–Š‡…‘‡ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ”‡•’‡…–‹˜‡‡ƒ†•‘ˆ…‘‡Ǥ‡…–‹‘ͳͶ…Žƒ••‹ϐ‹‡•–Š‡‹…‘‡
—†‡”ϐ‹˜‡Š‡ƒ†•Ǥ
ȋ‹Ȍ …‘‡ˆ”‘ƒŽƒ”‹‡•
ȋ‹‹Ȍ …‘‡ˆ”‘‘—•‡”‘’‡”–›
ȋ‹‹‹Ȍ ”‘ϐ‹–•ƒ†
ƒ‹•ˆ”‘—•‹‡••‘””‘ˆ‡••‹‘
ȋ‹˜Ȍ ƒ’‹–ƒŽ
ƒ‹•
ȋ˜Ȍ …‘‡ˆ”‘–Š‡”‘—”…‡•
͵Ǥ ‘•‹†‡”ƒŽŽ–Š‡‡†—…–‹‘•ƒ†ŽŽ‘™ƒ…‡•‰‹˜‡—†‡”–Š‡”‡•’‡…–‹˜‡Š‡ƒ†•„‡ˆ‘”‡ƒ””‹˜‹‰ƒ––Š‡‡–
—†‡”‡ƒ…ŠŠ‡ƒ†Ǥ
ͶǤ š…Ž—†‡–Š‡…‘‡•‡š‡’–—†‡”•‡…–‹‘ͳͲ‘ˆ–Š‡…–Ǥ
ͷǤ ‰‰”‡‰ƒ–‡ ‘ˆ …‘‡• …‘’—–‡† —†‡” –Š‡ ͷ Š‡ƒ†• ‘ˆ ‹…‘‡ ƒˆ–‡” ƒ’’Ž›‹‰ Ž—„„‹‰ ’”‘˜‹•‹‘• ƒ†
ƒ‹‰ƒ†Œ—•–‡–•‘ˆ•‡–‘ˆˆƒ†…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••‡•‹•‘™ƒ•
”‘••‘–ƒŽ…‘‡Ǥ
͸Ǥ ‡†—…– –Š‡”‡ˆ”‘ –Š‡ †‡†—…–‹‘• ƒ†‹••‹„Ž‡ —†‡” ‡…–‹‘• ͺͲ –‘ ͺͲǤ Š‡ „ƒŽƒ…‡ ‹• …ƒŽŽ‡† ‘–ƒŽ
…‘‡Ǥ
͹Ǥ Š‡–‘–ƒŽ‹…‘‡‹•”‘—†‡†‘ˆˆ–‘–Š‡‡ƒ”‡•–—Ž–‹’Ž‡‘ˆ—’‡‡•–‡Ǥȋ‡…–‹‘ʹͺͺȌ
ͺǤ †† ‰”‹…—Ž–—”‡ …‘‡ ȋ‹ˆ ƒ›Ȍ ‹ –Š‡ –‘–ƒŽ ‹…‘‡ …ƒŽ…—Žƒ–‡† ‹ ȋ͸Ȍ ƒ„‘˜‡Ǥ Š‡ …ƒŽ…—Žƒ–‡ –ƒš ‘ –Š‡
ƒ‰‰”‡‰ƒ–‡ƒ•‹ˆ•—…Šƒ‰‰”‡‰ƒ–‡‹…‘‡‹•–Š‡‘–ƒŽ…‘‡Ǥ
ͻǤ ƒŽ…—Žƒ–‡‹…‘‡–ƒš‘–Š‡‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ•‹…”‡ƒ•‡†„›•ǤʹǡͷͲǡͲͲͲȀ͵ǡͲͲǡͲͲͲȀͷǡͲͲǡͲͲͲƒ•
–Š‡…ƒ•‡ƒ›„‡ǡƒ•‹ˆ•—…Š‹…”‡ƒ•‡†‡–ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡™‡”‡–Š‡–‘–ƒŽ‹…‘‡Ǥ
ͳͲǤ Š‡ƒ‘—–‘ˆ‹…‘‡–ƒš†‡–‡”‹‡†—†‡”ȋͻȌƒ„‘˜‡™‹ŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡ƒ‘—–‘ˆ‹…‘‡–ƒš
†‡–‡”‹‡†—†‡”ȋͺȌƒ„‘˜‡Ǥ
ͳͳǤ ƒŽ…—Žƒ–‡‹…‘‡–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•—†‡”‡…–‹‘ͳͳʹǡͳͳʹǡͳͳͳƒ†‘‘–Š‡”‹…‘‡ƒ–•’‡…‹ϐ‹‡†
”ƒ–‡•Ǥ
ͳʹǤ Š‡„ƒŽƒ…‡‘ˆƒ‘—–‘ˆ‹…‘‡–ƒšŽ‡ˆ–ƒ•’‡”ȋͳͲȌƒ„‘˜‡’Ž—•–Š‡ƒ‘—–‘ˆ‹…‘‡–ƒšƒ–ȋͳͳȌƒ„‘˜‡
™‹ŽŽ„‡–Š‡‹…‘‡–ƒš‹”‡•’‡…–‘ˆ–Š‡–‘–ƒŽ‹…‘‡Ǥ
ͳ͵Ǥ ‡†—…––Š‡ˆ‘ŽŽ‘™‹‰ˆ”‘–Š‡ƒ‘—–‘ˆ–ƒš…ƒŽ…—Žƒ–‡†—†‡”ȋͳʹȌƒ„‘˜‡Ǥ
ȋ‹Ȍ ‡„ƒ–‡—†‡”•‡…–‹‘ͺ͹ȋ‹ˆƒ’’Ž‹…ƒ„Ž‡ȌǤ
ȋ‹‹Ȍ ƒš†‡†—…–‡†ƒ†…‘ŽŽ‡…–‡†ƒ–•‘—”…‡Ǥ
ȋ‹‹‹Ȍ †˜ƒ…‡–ƒš’ƒ‹†Ǥ
ȋ‹˜Ȍ ‘—„Ž‡–ƒšƒ–‹‘”‡Ž‹‡ˆȋ‡…–‹‘ͻͲ‘”ͻͳȌǤ
ͳͶǤ Š‡„ƒŽƒ…‡‘ˆƒ‘—–Ž‡ˆ–ƒˆ–‡”†‡†—…–‹‘‘ˆ‹–‡•‰‹˜‡‹ȋͳ͵Ȍƒ„‘˜‡ǡ•ŠƒŽŽ„‡–Š‡‡––ƒš’ƒ›ƒ„Ž‡‘”‡–
–ƒš”‡ˆ—†ƒ„Ž‡ˆ‘”–Š‡ƒ••‡••‡‡Ǥ‡––ƒš’ƒ›ƒ„Ž‡Ȁ”‡ˆ—†ƒ„Ž‡•ŠƒŽŽ„‡”‘—†‡†‘ˆˆ–‘–Š‡‡ƒ”‡•–—Ž–‹’Ž‡‘ˆ
‡”—’‡‡•ȋ‡…–‹‘ʹͺͺȌǤ
ͳͷǤ Ž‘‰™‹–Š–Š‡ƒ‘—–‘ˆ‡––ƒš’ƒ›ƒ„Ž‡ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽŠƒ˜‡–‘’ƒ›’‡ƒŽ–‹‡•‘”ϐ‹‡•ǡ‹ˆƒ›ǡ‹’‘•‡†
‘Š‹—†‡”–Š‡…‘‡Ǧ–ƒš…–Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 391

‘”…ƒŽ…—Žƒ–‹‘‘ˆ‹…‘‡ǡƒ‘—–”‡…‡‹˜‡†‹•…Žƒ••‹ϐ‹‡†—†‡”ͷŠ‡ƒ†•‘ˆ‹…‘‡Ǣ‹–‹•–Š‡–‘„‡ƒ†Œ—•–‡†™‹–Š
”‡ˆ‡”‡…‡–‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡ƒšŽƒ™•‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”Ǥ

Computation of Tax Liability Sections Amount

1. Income from Salary ͳͷ–‘ͳ͹ XXX

Less : ‡†—…–‹‘•—Ȁ•ͳ͸
‹Ǥ–ƒ†ƒ”†‡†—…–‹‘‘ˆ•ǤͷͲǡͲͲͲ‘”
”‘••ƒŽƒ”›ǡ™Š‹…Š‡˜‡”‹•Ž‘™‡”Ǥ
‹‹Ǥ–‡”–ƒ‹‡–ŽŽ‘™ƒ…‡
‹‹‹Ǥ”‘ˆ‡••‹‘ƒŽƒšƒ‹†
2. Income from House Property ʹʹ–‘ʹ͹ XXX
Less :‡†—…–‹‘—Ȁ•ʹͶ
–ƒ†ƒ”†‡†—…–‹‘
–‡”‡•–‘‘—•‡”‘’‡”–›‘ƒ
͵Ǥ…‘‡ˆ”‘”‘ϐ‹–•ƒ†
ƒ‹•ˆ”‘—•‹‡••ƒ†”‘ˆ‡••‹‘ ʹͺ–‘ͶͶ XXX

—”‘˜‡”Ȁ‡…‡‹’–•Ȁ ‡‡•ȀƒŽ‡•
Less : ‡†—…–‹‘•—Ȁ•͵Ͳ–‘͵͹ȋͳȌ
ͶǤ…‘‡ˆ”‘ƒ’‹–ƒŽ
ƒ‹• Ͷͷ–‘ͷͷ XXX
—ŽŽ˜ƒŽ—‡‘ˆ…‘•‹†‡”ƒ–‹‘
Less :‘•–‘ˆƒ…“—‹•‹–‹‘Ȁ‘•–‘ˆ’”‘˜‡‡–Ȁ”ƒ•ˆ‡”‡š’‡•‡•
Less :š‡’–‹‘—Ȁ•ͷͶȀͷͶȀͷͶ‡–…
5. Income from Other Sources ͷ͸–‘ͷͻ XXX
Income u/s 56
Less : ‡†—…–‹‘•—Ȁ•ͷ͹
Add : Ž—„„‹‰‘ˆ…‘‡ XXX
Less :‡–ˆˆƬƒ””› ‘”™ƒ”†”‘˜‹•‹‘•ǯ—†‡””‡•’‡…–‹˜‡Š‡ƒ†• ȋȌ

”‘••‘–ƒŽ…‘‡ȏ
Ȑ XXX
Less : ‡†—…–‹‘•—†‡”Šƒ’–‡” ͺͲ–‘ͺͲ ȋȌ

Total Income ȋ‘—†‡†‘ˆˆ–‘‡ƒ”‡•–•ǤͳͲ—Ȁ•ʹͺͺȌ XXX

ƒš‘‘–ƒŽ…‘‡ XXX
Add :—”…Šƒ”‰‡‘‘–ƒŽƒšȋ‹ˆƒ’’Ž‹…ƒ„Ž‡Ȍ XXX
‡••ǣ‡„ƒ–‡—Ȁ•ͺ͹ ȋȌ
††ǣͶΨ‡ƒŽ–ŠƬ†—…ƒ–‹‘‡••‘ȏ‘–ƒŽ–ƒšΪ—”…Šƒ”‰‡Ȃ‡„ƒ–‡Ȑ XXX

Net Tax Liability XXX

Less :ȋ‹ȌǤȋ‹‹ȌǤ†˜ƒ…‡ƒšȋ‹‹‹ȌǤ‡Ž‹‡ˆ—Ȁ•ͺͻ ȋȌ

ƒŽƒ…‡ƒšƒ›ƒ„Ž‡‘‡Žˆ••‡••‡–ȏ‡…–‹‘ͳͶͲȐ XXX

Less :‡Žˆ••‡••‡–ƒš’ƒ‹† XXX

ƒŽƒ…‡ƒš NIL
 392 Lesson 7 Ȉ EP-TL

  ȑͳͳͷȒ

‹ŽŽ ʹͲͳͻǦʹͲȋʹͲʹͲǦʹͳȌ–Š‡”‡™ƒ•‘Ž›‘‡”‡‰‹‡‘ˆƒšƒ–‹‘ˆ‘”†‹˜‹†—ƒŽ•ƒ† •ƒ†™‡”‡”‡“—‹”‡†
–‘ƒ’’Ž›–Š‡Žƒ„”ƒ–‡•’‡…‹ϐ‹‡†‹–Š‡—ƒŽ ‹ƒ…‡…–‘‘–ƒŽ…‘‡…‘’—–‡†ƒˆ–‡”ƒŽŽ‘™‹‰ƒ›†‡†—…–‹‘•
ƒ†‡š‡’–‹‘•Ǥ
‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”†‹˜‹†—ƒŽ•ƒ† •—Ȁ•ͳͳͷ‘ˆ–Š‡…‘‡
ƒš…–ǡͳͻ͸ͳ™Ǥ‡ǤˆǤʹͳǦʹʹ–‘’”‘˜‹†‡ˆ‘”…‘…‡••‹‘ƒŽ•Žƒ„”ƒ–‡•–‘„‡ƒ’’Ž‹‡†‘‘–ƒŽ…‘‡…ƒŽ…—Žƒ–‡†™‹–Š‘—–
…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ
‡…‡ǡˆ”‘ʹͲʹͳǦʹʹȋ‘” ʹͲʹͲǦʹͳȌǡ–Š‡”‡ƒ”‡™‘’‡”ƒ–‹˜‡ƒš›•–‡•ƒ•—†‡”ǣ
Ȉ š‹•–‹‰ƒš›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš”ƒ–‡•ƒ”‡
ƒ•’‡”–Š‡•Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
Ȉ ‡…–‹‘ͳͳͷ™Š‹…Š‹•’–‹‘ƒŽƒš›•–‡—†‡”™Š‹…Šƒ›†‡†—…–‹‘•ƒ†‡š‡’–‹‘•Šƒ˜‡„‡‡
†‹•ƒŽŽ‘™‡†„—–Ž‘™‡”•Žƒ„–ƒš”ƒ–‡•ƒ”‡’”‘˜‹†‡†‹–Š‡•‡…–‹‘ͳͳͷǤ

Š‡’”‘˜‹•‹‘”‡Žƒ–‡†–‘’–‹‘ƒŽƒš›•–‡—†‡”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳƒ”‡ƒ•—†‡”ǣ
Š‡–‘–ƒŽ‹…‘‡‘ˆƒ’‡”•‘ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡
ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ•ŠƒŽŽǡƒ––Š‡‘’–‹‘‘ˆ•—…Š’‡”•‘ǡ„‡…‘’—–‡†ƒ–
–Š‡”ƒ–‡‘ˆ–ƒš‰‹˜‡‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ„Ž‡ǡ‹ˆ–Š‡…‘†‹–‹‘•…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌƒ•‡–‹‘‡†„‡Ž‘™ƒ”‡
•ƒ–‹•ϐ‹‡†Ǥ

Sl. No. Total Income Rate of tax

ȋͳȌ ȋʹȌ (3)

ͳǤ ’–‘•ǤʹǡͷͲǡͲͲͲ ‹Ž
ʹǤ ”‘•ǤʹǡͷͲǡͲͲͳ–‘•ǤͷǡͲͲǡͲͲͲ ͷΨ
͵Ǥ ”‘•ǤͷǡͲͲǡͲͲͳ–‘•Ǥ͹ǡͷͲǡͲͲͲ ͳͲΨ
ͶǤ ”‘•Ǥ͹ǡͷͲǡͲͲͳ–‘•ǤͳͲǡͲͲǡͲͲͲ ͳͷΨ
ͷǤ ”‘•ǤͳͲǡͲͲǡͲͲͳ–‘•ǤͳʹǡͷͲǡͲͲͲ ʹͲΨ
͸Ǥ ”‘•ǤͳʹǡͷͲǡͲͲͳ–‘•ǤͳͷǡͲͲǡͲͲͲ ʹͷΨ
͹Ǥ „‘˜‡•ǤͳͷǡͲͲǡͲͲͲ ͵ͲΨ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡’‡”•‘ˆƒ‹Ž•–‘•ƒ–‹•ˆ›–Š‡…‘†‹–‹‘•…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋ2Ȍƒ•‡–‹‘‡†„‡Ž‘™‹
ƒ›’”‡˜‹‘—•›‡ƒ”ǡ–Š‡‘’–‹‘•ŠƒŽŽ„‡…‘‡‹˜ƒŽ‹†‹”‡•’‡…–‘ˆ–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Šƒ–’”‡˜‹‘—•›‡ƒ”
ƒ†‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›ǡƒ•‹ˆ–Š‡‘’–‹‘Šƒ†‘–„‡‡‡š‡”…‹•‡†ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ–
–‘–Šƒ–’”‡˜‹‘—•›‡ƒ”ǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡–Š‡‘’–‹‘‹•‡š‡”…‹•‡†—†‡”…Žƒ—•‡ȋiȌ‘ˆ•—„Ǧ•‡…–‹‘ȋ5Ȍǡ‹–Š‡‡˜‡–‘ˆˆƒ‹Ž—”‡–‘
•ƒ–‹•ˆ›–Š‡…‘†‹–‹‘•…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋ2Ȍǡ‹–•ŠƒŽŽ„‡…‘‡‹˜ƒŽ‹†ˆ‘”•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•ƒŽ•‘
ƒ†‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›ˆ‘”–Š‘•‡›‡ƒ”•ƒ……‘”†‹‰Ž›Ǥ
Conditions:
ȋͳȌŠ‡‘–ƒŽ…‘‡‘ˆ–Š‡†‹˜‹†—ƒŽ‘”‹†—†‹˜‹†‡† ƒ‹Ž›•ŠƒŽŽ„‡…‘’—–‡†ǡȄ
ȋ‹Ȍ ™‹–Š‘—– ƒ› ‡š‡’–‹‘ ‘” †‡†—…–‹‘ —†‡” –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ͳͲȋͷȌ ‘” ‡…–‹‘ ͳͲȋͳ͵Ȍ ‘”
’”‡•…”‹„‡†—Ȁ•ͳͲȋͳͶȌȋ‘–Š‡”–Šƒ–Š‘•‡ƒ•ƒ›„‡’”‡•…”‹„‡†ˆ‘”–Š‹•’—”’‘•‡Ȍ‘”—Ȁ•ͳͲȋͳ͹Ȍ‘”—Ȁ•ͳͲ
ȋ͵ʹȌ‘”•‡…–‹‘ͳͲ‘”•‡…–‹‘ͳ͸‘”‡…–‹‘ʹͶȋ„Ȍȋ‹”‡•’‡…–‘ˆ–Š‡’”‘’‡”–›”‡ˆ‡””‡†‹•‡…–‹‘ʹ͵ȋʹȌȌ
‘”•‡…–‹‘͵ʹȋͳȌȋ‹‹ƒȌ‘”•‡…–‹‘͵ʹ‘”•‡…–‹‘͵͵‘”•‡…–‹‘͵͵‘”•—„Ǧ…Žƒ—•‡ȋ‹‹Ȍ‘”•—„Ǧ…Žƒ—•‡
ȋ‹‹ƒȌ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘”•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘͵ͷ‘”•‡…–‹‘͵ͷ‘”•‡…–‹‘
͵ͷ ‘” •‡…–‹‘ ͷ͹ȋ‹‹ƒȌ ‘” —†‡” ƒ› ‘ˆ –Š‡ ’”‘˜‹•‹‘• ‘ˆ Šƒ’–‡” Ǧ ‘–Š‡” –Šƒ –Š‡ ’”‘˜‹•‹‘• ‘ˆ
•‡…–‹‘ͺͲȋʹȌ‘”•‡…–‹‘ͺͲ Ǣ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 393

ȋ‹‹Ȍ ™‹–Š‘—–•‡–‘ˆˆ‘ˆƒ›Ž‘••ǡȄ
ȋƒȌ …ƒ””‹‡†ˆ‘”™ƒ”†‘”†‡’”‡…‹ƒ–‹‘ˆ”‘ƒ›‡ƒ”Ž‹‡”ƒ••‡••‡–›‡ƒ”ǡ‹ˆ•—…ŠŽ‘••‘”†‡’”‡…‹ƒ–‹‘‹•
ƒ––”‹„—–ƒ„Ž‡–‘ƒ›‘ˆ–Š‡†‡†—…–‹‘•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹ȌǢ
ȋ„Ȍ —†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›dz™‹–Šƒ›‘–Š‡”Š‡ƒ†‘ˆ‹…‘‡Ǥ
ȋ‹‹‹Ȍ „›…Žƒ‹‹‰–Š‡†‡’”‡…‹ƒ–‹‘ǡ‹ˆƒ›ǡ—†‡”ƒ›’”‘˜‹•‹‘‘ˆ•‡…–‹‘͵ʹǡ‡š…‡’–…Žƒ—•‡ȋ‹‹ƒȌ‘ˆ•—„Ǧ•‡…–‹‘
ȋͳȌ‘ˆ–Š‡•ƒ‹†•‡…–‹‘ǡ†‡–‡”‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǣƒ†
ȋ‹˜Ȍ ™‹–Š‘—– ƒ› ‡š‡’–‹‘ ‘” †‡†—…–‹‘ ˆ‘” ƒŽŽ‘™ƒ…‡• ‘” ’‡”“—‹•‹–‡ǡ „› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†ǡ ’”‘˜‹†‡†
—†‡”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡Ǥ

ȋʹȌŠ‡Ž‘••ƒ††‡’”‡…‹ƒ–‹‘”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡‰‹˜‡ˆ—ŽŽ
‡ˆˆ‡…––‘ƒ†‘ˆ—”–Š‡”†‡†—…–‹‘ˆ‘”•—…ŠŽ‘••‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”ƒ›•—„•‡“—‡–›‡ƒ”ǣ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡”‡‹•ƒ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹”‡•’‡…–‘ˆƒ„Ž‘…‘ˆƒ••‡–•™Š‹…ŠŠƒ•‘–„‡‡‰‹˜‡
ˆ—ŽŽ‡ˆˆ‡…––‘’”‹‘”–‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ…‘””‡•’‘†‹‰ƒ†Œ—•–‡–
•ŠƒŽŽ„‡ƒ†‡–‘–Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆ•—…Š„Ž‘…‘ˆƒ••‡–•ƒ•‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲ‹–Š‡’”‡•…”‹„‡†
ƒ‡”ǡ‹ˆ–Š‡‘’–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‹•‡š‡”…‹•‡†ˆ‘”ƒ’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”
„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǤ
ȋ͵Ȍ…ƒ•‡‘ˆƒ’‡”•‘ǡŠƒ˜‹‰ƒ‹–‹–Š‡–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡ǡƒ•’‡”•‡…–‹‘ͺͲȋͳȌǡ™Š‹…Š
Šƒ•‡š‡”…‹•‡†‘’–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͷȌǡ–Š‡…‘†‹–‹‘•…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡‘†‹ϐ‹‡†–‘–Š‡
‡š–‡––Šƒ––Š‡†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡–‘•—…Š‹–•—„Œ‡…––‘ˆ—Žϐ‹Ž‡–‘ˆ–Š‡…‘†‹–‹‘•
…‘–ƒ‹‡†‹–Š‡•ƒ‹†•‡…–‹‘Ǥ
 š’Žƒƒ–‹‘ǣ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ•‡…–‹‘ǡ–Š‡–‡”Dz‹–dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡
ȋœ…Ȍ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡’‡…‹ƒŽ…‘‘‹…‘‡•…–ǡʹͲͲͷǤ
ȋͶȌ‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›—Ž‡••‘’–‹‘‹•‡š‡”…‹•‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”„›–Š‡’‡”•‘ǡȄ
ȋ‹Ȍ Šƒ˜‹‰ ‹…‘‡ ˆ”‘ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ǡ ‘ ‘” „‡ˆ‘”‡ –Š‡ †—‡ †ƒ–‡ —Ȁ• ͳ͵ͻȋͳȌ ˆ‘” ˆ—”‹•Š‹‰ –Š‡
”‡–—”•‘ˆ‹…‘‡ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–
†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡƒ†•—…Š‘’–‹‘‘…‡‡š‡”…‹•‡†•ŠƒŽŽƒ’’Ž›–‘•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•Ǣ
ȋ‹‹Ȍ Šƒ˜‹‰ ‹…‘‡ ‘–Š‡” –Šƒ –Š‡ ‹…‘‡ ”‡ˆ‡””‡† –‘ ‹ …Žƒ—•‡ ȋ‹Ȍǡ ƒŽ‘‰ ™‹–Š –Š‡ ”‡–—” ‘ˆ ‹…‘‡ –‘ „‡
ˆ—”‹•Š‡†—Ȁ•ͳ͵ͻȋͳȌˆ‘”ƒ’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”ǣ

”‘˜‹†‡†–Šƒ––Š‡‘’–‹‘—†‡”…Žƒ—•‡ȋiȌǡ‘…‡‡š‡”…‹•‡†ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”…ƒ„‡™‹–Š†”ƒ™‘Ž›‘…‡ˆ‘”ƒ
’”‡˜‹‘—•›‡ƒ”‘–Š‡”–Šƒ–Š‡›‡ƒ”‹™Š‹…Š‹–™ƒ•‡š‡”…‹•‡†ƒ†–Š‡”‡ƒˆ–‡”ǡ–Š‡’‡”•‘•ŠƒŽŽ‡˜‡”„‡‡Ž‹‰‹„Ž‡–‘
‡š‡”…‹•‡‘’–‹‘—†‡”–Š‹••‡…–‹‘ǡ‡š…‡’–™Š‡”‡•—…Š’‡”•‘…‡ƒ•‡•–‘Šƒ˜‡ƒ›‹…‘‡ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘
‹™Š‹…Š…ƒ•‡ǡ‘’–‹‘—†‡”…Žƒ—•‡ȋiiȌ•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡Ǥ
Comparison of Existing Tax System with New Optional Tax System for Individual & HUF

Details Existing System of Tax ‡™›•–‡‘ˆƒš—Ȁ•ͳͳͷ

š‡’–‹‘‹‹– Š”‡‡‡š‡’–‹‘Ž‹‹–•ƒ”‡ƒ’’Ž‹…ƒ„Ž‡ Ž› ‘‡ ‡š‡’–‹‘ Ž‹‹– ‘ˆ •ǤʹǡͷͲǡͲͲͲ
ˆ‘”…‘‡•–ƒšƒ„Ž‡ ͳȌ •Ǥ ͷǡͲͲǡͲͲͲ ˆ‘” •—’‡” •‡‹‘” …‹–‹œ‡ ƒ˜ƒ‹Žƒ„Ž‡ ‹””‡•’‡…–‹˜‡ ‘ˆ ƒ‰‡Ȁ”‡•‹†‡–‹ƒŽ
ƒ–Žƒ„ƒ–‡• ȋ‹‹—ͺͲ›‡ƒ”•Ƭ”‡•‹†‡–Ȍ •–ƒ–—•
ʹȌ•Ǥ͵ǡͲͲǡͲͲͲˆ‘”•‡‹‘”…‹–‹œ‡ȋ‹‹—
͸Ͳ ›‡ƒ”• „—– Ž‡•• –Šƒ ͺͲ ›‡ƒ”• Ƭ
”‡•‹†‡–Ȍ
͵Ȍ•ǤʹǡͷͲǡͲͲͲˆ‘”‘–Š‡”‹†‹˜‹†—ƒŽ
 394 Lesson 7 Ȉ EP-TL

Žƒ„ƒ–‡• ͵†‹ˆˆ‡”‡–•Žƒ„”ƒ–‡• ‡•Žƒ„”ƒ–‡

ͲȂʹǡͷͲǡͲͲͲǣ‹Ž Ͳ–‘ʹǡͷͲǡͲͲͲ‹Ž
εʹǡͷͲǡͲͲͲ—’–‘ͷǡͲͲǡͲͲͲǣͷΨ εʹǡͷͲǡͲͲͲ–‘ͷǡͲͲǡͲͲͲǣͷΨ
εͷǡͲͲǡͲͲͲ—’–‘ͳͲǡͲͲǡͲͲͲǣʹͲΨ εͷǡͲͲǡͲͲͲ–‘͹ǡͷͲǡͲͲͲǣͳͲΨ
εͳͲǡͲͲǡͲͲͲǣ͵ͲΨ ε͹ǡͷͲǡͲͲͲ–‘ͳͲǡͲͲǡͲͲͲǣͳͷΨ
ͲȂ͵ǡͲͲǡͲͲͲǣ‹Ž εͳͲǡͲͲǡͲͲ–‘ͳʹǡͷͲǡͲͲͲǣʹͲΨ
ε͵ǡͲͲǡͲͲͲ—’–‘ͷǡͲͲǡͲͲͲǣͷΨ εͳʹǡͷͲǡͲͲ–‘ͳͷǡͲͲǡͲͲͲǣʹͷΨ
εͷǡͲͲǡͲͲͲ—’–‘ͳͲǡͲͲǡͲͲͲǣʹͲΨ εͳͷǡͲͲǡͲͲͲǣ͵ͲΨ
εͳͲǡͲͲǡͲͲͲǣ͵ͲΨ
ͲȂͷǡͲͲǡͲͲͲǣ‹Ž
εͷǡͲͲǡͲͲͲ—’–‘ͳͲǡͲͲǡͲͲͲǣʹͲΨ
εͳͲǡͲͲǡͲͲͲǣ͵ͲΨ
’‡…‹ƒŽ”ƒ–‡•‘ˆ ˜ƒ‹Žƒ„Ž‡ ˜ƒ‹Žƒ„Ž‡
ƒš‡•‡Ǥ‰Ǥ‡…–‹‘
ͳͳͷǡͳͳʹǡͳͳʹ
‡–…Ǥ
‡„ƒ–‡—Ȁ•ͺ͹ ˜ƒ‹Žƒ„Ž‡ ˜ƒ‹Žƒ„Ž‡
Šƒ’–‡”Ǧ ˜ƒ‹Žƒ„Ž‡ ‘–ƒ˜ƒ‹Žƒ„Ž‡‡š…‡’–ͺͲȋʹȌǡͺͲ 
‡†—…–‹‘•
—”…Šƒ”‰‡ ’’Ž‹…ƒ„Ž‡ȋͳͲΨȀͳͷΨȀʹͷΨȀ͵͹ΨȌ ’’Ž‹…ƒ„Ž‡ȋͳͲΨȀͳͷΨȀʹͷΨȀ͵͹ΨȌ
‡ƒŽ–ŠƬ†—…ƒ–‹‘ ͶΨ ͶΨ
॥
‡†—…–‹‘•ƒ† ˜ƒ‹Žƒ„Ž‡ ƒ›  ‡†—…–‹‘•   Ƭ   š‡’–‹‘•   ‘–
š‡’–‹‘• ƒ˜ƒ‹Žƒ„Ž‡
‡–‘ˆˆ‘ˆȀ Ž‘••‡• ˜ƒ‹Žƒ„Ž‡ ‘– ƒŽŽ‘™‡† ‹ˆ ”‡Žƒ–‡† –‘ ‡†—…–‹‘• Ƭ
Ƭ‡’”‡…‹ƒ–‹‘ǡ ‡š‡’–‹‘•‘–ƒŽŽ‘™‡†—Ȁ•ͳͳͷ
ˆ”‘’ƒ•–’Ȁ›
‡–‘ˆˆ‘ˆ…—””‡– ˜ƒ‹Žƒ„Ž‡ ŽŽ‘™‡†š…‡’–Ž‘••‡•‘ˆ‘—•‡”‘’‡”–›
›‡ƒ”Ž‘••‡•
–‹ƒ–‹‘ ‘–”‡“—‹”‡†ƒ•‘Ž†–ƒš•›•–‡ƒ˜ƒ‹Žƒ„Ž‡„› ••‡••‡‡…ƒ‘’–ˆ‘”‡™–ƒš•›•–‡‘Ž›‹ˆ
†‡ˆƒ—Ž– –‹ƒ–‹‘‰‹˜‡‹’”‡•…”‹„‡†ƒ‡”
”‘˜‹•‹‘•‘ˆ ’’Ž‹…ƒ„Ž‡ ‘–’’Ž‹…ƒ„Ž‡
—Ȁ•ͳͳͷ 
ƒ› ‡š‡’–‹‘• Ƭ †‡†—…–‹‘• ƒ”‡ ‘– ƒŽŽ‘™‡† —†‡” –Š‡ ‡™ –ƒš •›•–‡Ǥ Š‡ ‡š‡’–‹‘• ƒ† †‡†—…–‹‘ ‘–
ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡‡™•›•–‡”‡Žƒ–‡†–‘Š‡ƒ†‘ˆ‹…‘‡ƒ”‡‰‹˜‡—†‡”–Š‡”‡•’‡…–‹˜‡…Šƒ’–‡”•Ǥ
TAXATION OF INDIVIDUALS

Illustration 1:

”‘••–‘–ƒŽ‹…‘‡‘ˆ”Ǥǡƒ–ƒš…‘•—Ž–ƒ–„ƒ•‡†ƒ–—„ƒ‹ǡ‹••ǤͳͺǡͲͲǡͲͲͲȋ‹…‘‡ˆ”‘’”‘ˆ‡••‹‘•Ǥ
ͳ͹ǡͲͲǡͲͲͲƒ†‹–‡”‡•–‘„ƒϐ‹š‡††‡’‘•‹–•ǤͳǡͲͲǡͲͲͲȌǤ‡’ƒ›••Ǥ͵ǡͲͲǡͲͲͲƒ•Š‘—•‡”‡–Ǥ‡†‡’‘•‹–••Ǥ
ͷͲǡͲͲͲ‹’—„Ž‹…’”‘˜‹†‡–ˆ—†Ǥ‘’—–‡Š‹•–ƒšƒ„Ž‡‹…‘‡ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 395

Solution :
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Computation of Taxable Income of Mr. X for the A.Y. 2022-23

Particular Amount (Rs.) Amount (Rs.)
”‘ˆ‡••‹‘ƒŽ…‘‡Ȃ
 ͳ͹ǡͲͲǡͲͲͲ
–‡”‡•–‘ƒ‡’‘•‹–Ȃ–Š‡”•‘—”…‡• ͳǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳͺǡͲͲǡͲͲͲ
Less: ‡†—…–‹‘•—†‡”Šƒ’–‡”Ǧ ȋͷͲǡͲͲͲȌ
—Ȁ•ͺͲȋ Ȍ ȋ͸ͲǡͲͲͲȌ
—Ȁ•ͺͲ

ȋ‘–‡ǦͳȌ ȋͳǡͳͲǡͲͲͲȌ
Total Income 16,90,000

Note 1:‡†—…–‹‘—Ȁ•ͺͲ

‹•Ž‡ƒ•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ƒȌ •Ǥ͸ͲǡͲͲͲȋ‹Ǥ‡Ǥǡ•ǤͷͲͲͲšͳʹ‘–Š•Ȍ
„Ȍ •ǤͶǡ͵͹ǡͷͲͲȏʹͷΨ‘ˆ–‘–ƒŽ‹…‘‡ȋ•ǤͳͺǡͲͲǡͲͲͲǦͷͲǡͲͲͲȌȐ
…Ȍ •ǤͳǡʹͷǡͲͲͲȏš…‡••‘ˆ”‡–’ƒ‹†‘˜‡”ͳͲΨ‘ˆ–‘–ƒŽ‹…‘‡ȋ•Ǥ͵ǡͲͲǡͲͲͲǦͳǡ͹ͷǡͲͲͲȌȐ

’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Computation of Taxable Income of Mr. X for the A.Y. 2022-23

Particular Amount (Rs.)

”‘ˆ‡••‹‘ƒŽ…‘‡Ȃ
 ͳ͹ǡͲͲǡͲͲͲ
–‡”‡•–‘ƒ‡’‘•‹–Ȃ–Š‡”•‘—”…‡• ͳǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳͺǡͲͲǡͲͲͲ
‡••ǣ‡†—…–‹‘•—†‡”Šƒ’–‡”Ǧ ‹Ž
Total Income 18,00,000
Note 1: ‡†—…–‹‘—Ȁ•ͺͲƬͺͲ

‘–ƒŽŽ‘™‡†

Illustration 2:
”‘ –Š‡ ˆ‘ŽŽ‘™‹‰ ’”‘ϐ‹– ƒ† Ž‘•• ƒ……‘—– ‘ˆ ‹ƒ› ˆ‘” –Š‡ ›‡ƒ” ‡†‡† ͵ͳ•– ƒ”…Š ʹͲʹʹǡ …‘’—–‡ Š‹• –‘–ƒŽ
‹…‘‡ƒ†–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ǣ

Particulars Amount Particulars Amount

Rs. Rs.
–‡”‡•–‘…ƒ’‹–ƒŽ ͳʹǡͲͲͲ
”‘••’”‘ϐ‹– ͷǡͳͲǡͲͲͲ
•—”ƒ…‡ ʹǡͲͲͲ ”‘‡”ƒ‰‡ ͵ͲǡͲͲͲ
ƒ††‡„–• ͵ͲǡͲͲͲ ƒ††‡„–•”‡…‘˜‡”‡† ͳͷǡͲͲͲ
ȋ‡ƒ”Ž‹‡”ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ȍ
‡’”‡…‹ƒ–‹‘ ͵ͶǡͲͲͲ —†”›”‡…‡‹’–• ͳͺǡͲͲͲ
†˜ƒ…‡–ƒš ʹͷǡͲͲͲ –‡”‡•– ‘ †‡„‡–—”‡• ȋ‰”‘••Ȍ ȏ
•ǤͶǡͲͲͲȐ
396 Lesson 7 Ȉ EP-TL

‡‡”ƒŽ‡š’‡•‡• ͳʹǡͲͲͲ ͶͲǡͲͲͲ
†˜‡”–‹•‡‡– ͷǡͲͲͲ
ƒŽƒ”› ȋ‹…Ž—†‹‰ •ƒŽƒ”› –‘ ‹ƒ› ͺͷǡͲͲͲ
•ǤʹͲǡͲͲͲȌ
–‡”‡•–‘Ž‘ƒ ͺǡͲͲͲ
‡–’”‘ϐ‹– ͶǡͲͲǡͲͲͲ
Total 6,13,000 Total 6,13,000
††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘ǣ
ȋ‹Ȍ Š‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡ƒ•’‡”‹…‘‡Ǧ–ƒš”—Ž‡•‹••ǤͶʹǡͲͲͲǤ
ȋ‹‹Ȍ
‡‡”ƒŽ‡š’‡•‡•‹…Ž—†‡•ǤͷǡͲͲͲ‰‹˜‡ƒ•‡ƒŽ–Š‹•—”ƒ…‡”‡‹—Ǥ
ȋ‹‹‹Ȍ ‹ƒ›’ƒ›••ǤͷǡʹͲͲƒ•’”‡‹—‘Š‹•‘™Ž‹ˆ‡‹•—”ƒ…‡’‘Ž‹…›‘ˆ•ǤͷͲǡͲͲͲ‹••—‡†‹ʹͲͳ͸Ǧͳ͹Ǥ
ȋ‹˜Ȍ ‘ƒ™ƒ•‘„–ƒ‹‡†ˆ‘”’ƒ›‡–‘ˆ‹…‘‡Ǧ–ƒšǤ
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution :
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Particulars Amount (Rs.) Amount (Rs.)

ȋȌ…‘‡ˆ”‘„—•‹‡••
‡–’”‘ϐ‹–ˆ‘”–Š‡›‡ƒ” ͶǡͲͲǡͲͲͲ
††ǣš’‡•‡•‘–ƒŽŽ‘™‡†—†‡”…‘‡–ƒš…–„—–†‡„‹–‡†–‘
ƬȀ…
–‡”‡•–‘…ƒ’‹–ƒŽȋ‘–‡ʹȌ ͳʹǡͲͲͲ
‡’”‡…‹ƒ–‹‘ƒ•’‡”„‘‘•‘ˆƒȀ… ͵ͶǡͲͲͲ
†˜ƒ…‡–ƒš ʹͷǡͲͲͲ

‡‡”ƒŽš’‡•‡• ͷǡͲͲͲ
ƒŽƒ”›–‘‹ƒ› ʹͲǡͲͲͲ
–‡”‡•–‘Ž‘ƒȋ‘–‡ʹȌ ͺǡͲͲͲ ͳǡͲͶǡͲͲͲ
‡••ǣ…‘‡‘–”‡Žƒ–‡†–‘„—•‹‡••ƒ†’”‘ˆ‡••‹‘„—–
”‡†‹–‡†–‘ƬƒȀ…
–‡”‡•–‘†‡„‡–—”‡• ͶͲǡͲͲͲ
‡†—…–‹„Ž‡‡š’‡•‡•‘–†‡„‹–‡†–‘Ƭ……‘—–
‡’”‡…‹ƒ–‹‘ƒ•’‡”…‘‡–ƒš…– ͶʹǡͲͲͲ ȋͺʹǡͲͲͲȌ
”‘ϐ‹–•ƒ†
ƒ‹•‘ˆ—•‹‡••Ƭ”‘ˆ‡••‹‘ ͶǡʹʹǡͲͲͲ
ȋȌ…‘‡ˆ”‘‘–Š‡”•‘—”…‡•–‡”‡•–‘†‡„‡–—”‡ ͶͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ȋΪȌ Ͷǡ͸ʹǡͲͲͲ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 397

‡••ǣ‡†—…–‹‘ȀͺͲȂͺͲ
ȋ‹Ȍ”‡‹—‘Ž‹ˆ‡‹•—”ƒ…‡’‘Ž‹…›ȋ—Ȁ•ͺͲȌȋ‘–‡ͳȌ ȋͷǡͲͲͲȌ
ȋ‹‹Ȍ‡ƒŽ–Š‹•—”ƒ…‡”‡‹—ȋ—Ȁ•ͺͲȌ ȋͷǡͲͲͲȌ
‘–ƒŽƒšƒ„Ž‡…‘‡ ͶǡͷʹǡͲͲͲ

Note
ͳǤ †‡”•‡…–‹‘ͺͲ†‡†—…–‹‘‘ˆŽ‹ˆ‡‹•—”ƒ…‡’”‡‹—…ƒ‘–‡š…‡‡†ͳͲΨ‘ˆ–Š‡•—ƒ••—”‡†Ǥ
ʹǤ †‡”‡…–‹‘͵͸ȋͳȌȋ‹‹‹Ȍ–‡”‡•–’ƒ‹†‘„‘””‘™‡†…ƒ’‹–ƒŽ‹•ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘Ǥ–‡”‡•–‘‘™
…ƒ’‹–ƒŽ‹•‘–†‡†—…–‹„Ž‡Ǥ‹‹Žƒ”Ž›ǡ‹–‡”‡•–‘‘‡›„‘””‘™‡†–‘’ƒ›‹…‘‡–ƒš‹‘–ƒŽŽ‘™‡†ƒ•ƒ
†‡†—…–‹‘Ǥ

’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Particulars Amount (Rs.) Amount (Rs.)

ȋȌ…‘‡ˆ”‘—•‹‡••
‡–’”‘ϐ‹–ˆ‘”–Š‡›‡ƒ” ͶǡͲͲǡͲͲͲ
††ǣš’‡•‡•‘–ƒŽŽ‘™‡†—†‡”…‘‡–ƒšƒ…–„—–†‡„‹–‡†–‘ƬȀ…
–‡”‡•–‘…ƒ’‹–ƒŽȋ‘–‡ʹȌ ͳʹǡͲͲͲ
‡’”‡…‹ƒ–‹‘ƒ•’‡”„‘‘•‘ˆȀ… ͵ͶǡͲͲͲ
†˜ƒ…‡–ƒš ʹͷǡͲͲͲ

‡‡”ƒŽš’‡•‡• ͷǡͲͲͲ
ƒŽƒ”›–‘‹ƒ› ʹͲǡͲͲͲ
–‡”‡•–‘Ž‘ƒȋ‘–‡ʹȌ ͺǡͲͲͲ ͳǡͲͶǡͲͲͲ
‡••ǣ…‘‡‘–”‡Žƒ–‡†–‘„—•‹‡••ƒ†’”‘ˆ‡••‹‘„—–”‡†‹–‡†–‘Ƭ
Ȁ…
–‡”‡•–‘†‡„‡–—”‡• ͶͲǡͲͲͲ
‡†—…–‹„Ž‡‡š’‡•‡•‘–†‡„‹–‡†–‘Ƭ……‘—–
‡’”‡…‹ƒ–‹‘ƒ•’‡”…‘‡–ƒš…–ȋ‘”‹‰‘–‡Ȍ ͶʹǡͲͲͲ ȋͺʹǡͲͲͲȌ
”‘ϐ‹–•ƒ†
ƒ‹•‘ˆ—•‹‡••Ƭ”‘ˆ‡••‹‘ ͶǡʹʹǡͲͲͲ
ȋȌ…‘‡ˆ”‘‘–Š‡”•‘—”…‡•–‡”‡•–‘†‡„‡–—”‡ ͶͲǡͲͲͲ

”‘••–‘–ƒŽ‹…‘‡ȋΪȌ Ͷǡ͸ʹǡͲͲͲ
‡••ǣ‡†—…–‹‘ȀͺͲȂͺͲ 
Total Taxable Income 4,62,000
Note:
ͳǤ ‡†—…–‹‘—Ȁ•ͺͲ‹•‘–ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͳͳͷǤ
ʹǤ †‡”‡…–‹‘͵͸ȋͳȌȋ‹‹‹Ȍ–‡”‡•–’ƒ‹†‘„‘””‘™‡†…ƒ’‹–ƒŽ‹•ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘Ǥ–‡”‡•–‘‘™
…ƒ’‹–ƒŽ‹•‘–†‡†—…–‹„Ž‡Ǥ‹‹Žƒ”Ž›ǡ‹–‡”‡•–‘‘‡›„‘””‘™‡†–‘’ƒ›‹…‘‡–ƒš‹‘–ƒŽŽ‘™‡†ƒ•ƒ
†‡†—…–‹‘Ǥ
͵Ǥ ‡’”‡…‹ƒ–‹‘—Ȁ•ͳͳͷ‹•ƒŽŽ‘™‡†‡š…‡’–††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘ƒ•’‡”’”‡•…”‹„‡†ƒ‡”Ǥ
398 Lesson 7 Ȉ EP-TL

Illustration 3:

‘” –Š‡ ••‡••‡– ‡ƒ” ʹͲʹʹǦʹ͵ǡ ”Ǥ ƒǡ ™Š‘ ‹• ͷͺ ›‡ƒ”• ‘Ž†ǡ ”‡•‹†‡– ‹ †‹ƒǡ ˆ—”‹•Š‡• –Š‡ ˆ‘ŽŽ‘™‹‰
‹ˆ‘”ƒ–‹‘ǣ

ƒ•‹…•ƒŽƒ”› •ǤͳͷͲͲͲ’
‡ƒ”‡••ŽŽ‘™ƒ…‡ȋʹͲΨˆ‘”‹‰’ƒ”–ˆ‘””‡–‹”‡‡–„‡‡ϐ‹–•Ȍ ͶͲΨ‘ˆ„ƒ•‹…•ƒŽƒ”›
‹–›‘’‡•ƒ–‘”›ŽŽ‘™ƒ…‡ •Ǥ͵ͲͲ’
•ǤʹͲͲ’’‡”…Š‹Ž†
Š‹Ž†”‡‡†—…ƒ–‹‘ƒŽŽ‘™ƒ…‡
ˆ‘”ʹ…Š‹Ž†”‡
”ƒ•’‘”–ƒŽŽ‘™ƒ…‡ •ǤʹͲͲͲ’
‘—•‡‡–ŽŽ‘™ƒ…‡ •Ǥ͸ͲͲͲ’
…–—ƒŽ”‡–’ƒ‹†ˆ‘”ƒŠ‘—•‡‹‡ŽŠ‹ •Ǥ͹ͲͲͲ’
‡–”ƒ˜‡Ž•˜‹ƒ‡ŽŠ‹‡–”‘ˆ”‘Š‹•”‡•‹†‡…‡–‘‘ˆϐ‹…‡ƒ†„ƒ…‹™Š‹…ŠŠ‡•’‡†• •ǤͳͷͲͲ’
‡†‹…ƒŽƒŽŽ‘™ƒ…‡ •ǤͳͲͲͲ’
—…ŠƒŽŽ‘™ƒ…‡ •ǤʹͲͲ’
‡‘™•ƒŠ‘—•‡’”‘’‡”–›‹—„ƒ‹™Š‘•‡…‘•–”—…–‹‘‹•…‘’Ž‡–‡†‹ʹͲͲͷƒ†™Š‹…Š‹•Ž‡–‘—–ˆ‘”•ǤͶͲǡͲͲͲ
’ǤŠ‡•–ƒ†ƒ”†”‡–ƒ•’‡”‡–‘–”‘Ž…–‹••Ǥ͵ǡͳͲǡͲͲͲǤ‡’ƒ›••Ǥ͵ʹǡͲͲͲˆ‘”—‹…‹’ƒŽ–ƒš‡•ƒ†‹–‡”‡•–
‘…ƒ’‹–ƒŽ„‘””‘™‡†ˆ‘”…‘•–”—…–‹‘‘ˆŠ‘—•‡•Ǥ͹ͷǡͲͲͲǤ —”–Š‡”ǡŠ‡‹…—”••ǤͳͲǡͲͲͲ‘”‡’ƒ‹”•‘ˆ–Š‡Š‘—•‡Ǥ
‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹••ǤʹʹͷǡͲͲͲ
Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹•ˆ‘”–Š‡›‡ƒ”•ǤͳǡͲͳǡͲͲͲȋ‘–ƒ’’Ž‹…ƒ„Ž‡ȌǤ
‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ•ǤͳʹǡͲͲͲǤ
–‡”‡•–”‡…‡‹˜‡†̷ͳͲΨ‘Ž‹•–‡††‡„‡–—”‡•‘ˆˆƒ…‡˜ƒŽ—‡ͳͶǡͲͲǡͲͲͲ
‹™ƒŽ‹
‹ˆ–‘ˆ‰‘Ž†…‘‹•”‡…‡‹˜‡†ˆ”‘ƒˆ”‹‡†Ǥƒ”‡–˜ƒŽ—‡•ǤͷͲǡͲͲͲ
Šƒ”‡‘ˆ’”‘ϐ‹–ˆ”‘ǣ

‹” ͶͲǡͲͲͲ
 ͵ͶǡͲͲͲ
…‘‡ˆ”‘‘––‡”‹‡•ȋ‰”‘••Ȍ ͷͲǡͲͲͲ

”Ǥƒ‹˜‡•–‡†‹ •ǤͳǡͷͲǡͲͲͲƒ†ƒŽ•‘’ƒ‹†ƒŽ‹ˆ‡‹•—”ƒ…‡’”‡‹—‘ˆ•ǤʹͳǡͲͲͲǤ‘ƒ–‹‘–‘ƒ–‹‘ƒŽ
‡ˆ‡…‡ —†•ǤͳͲǡͲͲͲǤ
‘’—–‡–Š‡–‘–ƒŽ‹…‘‡ƒ†ƒšŽ‹ƒ„‹Ž‹–›‘ˆ”Ǥƒˆ‘”–Š‡••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ‘Ž—–‹‘
Solution:
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
(A) Computation of Total Income

Particulars Rs. Rs.

Income from Salary
ƒ•‹…•ƒŽƒ”›ȋͳͷͲͲͲȗͳʹȌ ͳͺͲǡͲͲͲ
‡ƒ”‡••ŽŽ‘™ƒ…‡ȋͳͺͲǡͲͲͲȗͲǤͶͲȌ ͹ʹǡͲͲͲ
ȋˆ—ŽŽ›–ƒšƒ„Ž‡Ȍȋ͵ͲͲȗͳʹȌ ͵͸ͲͲ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 399

Particulars Rs. Rs.

Š‹Ž†”‡†—…ƒ–‹‘ŽŽ‘™ƒ…‡ ͶͺͲͲ
Less: š‡’– ʹͶͲͲ ʹͶͲͲ
”ƒ•’‘”–ƒŽŽ‘™ƒ…‡ ʹͶͲͲͲ
Less:š‡’–ȋš‡’–‹‘™‹–Š†”ƒ™„› ‹ƒ…‡…–ǡʹͲͳͺȌ  ʹͶͲͲͲ
‘—•‡‡–ŽŽ‘™ƒ…‡ȋ‘–‡Ȍ ͹ͶͶͲ
—…ŠŽŽ‘™ƒ…‡ ʹͶͲͲ
‡†‹…ƒŽŽŽ‘™ƒ…‡ ͳʹͲͲͲ
Less: ‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ȋ‹ƒȌ–ƒ†ƒ”†‡†—…–‹‘ ȋͷͲǡͲͲͲȌ
Taxable Salary 2,53,840
Income from house property

”‘••ƒ—ƒŽƒŽ—‡ȋ‡–‡…‡‹˜‡†ͶͲǡͲͲͲȗͳʹȌ ͶǡͺͲǡͲͲͲ
Less:—‹…‹’ƒŽƒš‡• ȋ͵ʹǡͲͲͲȌ
‡–ƒ—ƒŽƒŽ—‡ ͶǡͶͺǡͲͲͲ
Less:–ƒ†ƒ”†‡†—…–‹‘̷͵ͲΨ‘ˆͶǡͶͺǡͲͲͲ ȋͳǡ͵ͶǡͶͲͲȌ
Less: –‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡† ȋ͹ͷǡͲͲͲȌ
Income from House property 2,38,600
…‘‡ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘
‹”ȋš‡’–Ȍ 
 ȋš‡’–Ȍ 
…‘‡—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•
Long-term capital gains u/s 112 2,25,000
Š‘”––‡”ƒ’‹–ƒŽ
ƒ‹—Ȁ•ͳͳͳ 1,01,000
Income from other sources
‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ ͳʹǡͲͲͲ
–‡”‡•–”‡…‡‹˜‡†‘Ž‹•–‡††‡„‡–—”‡• ͳǡͶͲǡͲͲͲ
‹‹‰ˆ”‘‘––‡”‹‡• ͷͲǡͲͲͲ

‹ˆ–‹‹† ͷͲǡͲͲͲ ʹͷʹǡͲͲͲ

”‘••‘–ƒŽ…‘‡ 10,70,440
Less:‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ
ȋ‹Ȍ†‡”•‡…–‹‘ͺͲȋƒš‹—Ȍ ȋͳͷͲǡͲͲͲȌ
ȋ‹‹Ȍ†‡”•‡…–‹‘ͺͲ
ȋͳͲǡͲͲͲȌ
Total Income 9,10,440

ȋȌ‘’—–ƒ–‹‘‘ˆƒš‘‘–ƒŽ…‘‡

ƒš‘™‹‹‰ˆ”‘Ž‘––‡”‹‡•ȋ͵ͲΨ‘ˆ•ǤͷͲǡͲͲͲȌ ͳͷǡͲͲͲ
ƒš‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋʹͲΨ‘ˆ•ǤʹǡʹͷǡͲͲͲȌ ͶͷͲͲͲ
ƒŽƒ…‡‘ˆ‘–ƒŽ…‘‡•Ǥ͸ǡ͵ͷǡͶͶͲ ͵ͻǡͷͺͺ
‘–ƒŽ–ƒš ͻͻǡͷͺͺ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘…‡••ƒ–ͶΨ ͵ǡͻͺ͵Ǥͷʹ
‘–ƒŽŽ‹ƒ„‹Ž‹–› ͳǡͲ͵ǡͷ͹ͳǤͷʹ
Total liability (round off) 1,03,570
400 Lesson 7 Ȉ EP-TL

‘–‡•ǣ
ͳǤ ‘—•‡‡–ŽŽ‘™ƒ…‡ǣ‡ƒ•–‘ˆ–Š”‡‡‹•‡š‡’–
‹Ǥ ͷͲΨ‘ˆ–Š‡•ƒŽƒ”›ȗ„‡…ƒ—•‡–Š‡Š‘—•‡‹•‹‡ŽŠ‹αͲǤͷͲȗͳͻͶͶͲͲα•Ǥͻ͹ǡʹͲͲ
‹‹Ǥ ”‡…‡‹˜‡†α•Ǥ͹ʹǡͲͲͲ
‹‹‹Ǥ ‡–’ƒ‹†ȂͳͲΨ‘ˆ–Š‡•ƒŽƒ”›αȋ͹ͲͲͲȗͳʹȌȂͲǤͳͲȗͳͻͶͶͲͲαͺͶͲͲͲǦͳͻͶͶͲα•Ǥ͸Ͷǡͷ͸Ͳ
š‡’–‡†α•Ǥ͸Ͷǡͷ͸Ͳ
ƒšƒ„Ž‡α͹ʹǡͲͲͲȂʹͷǡ͸ͺͲα•Ǥ͹ǡͶͶͲ
ȗƒŽƒ”›Š‡”‡αƒ•‹…•ƒŽƒ”›Ϊ‡ƒ”‡••ƒŽŽ‘™ƒ…‡ȋˆ‘”‹‰’ƒ”–‘Ž›ȌαͳͺͲǡͲͲͲΪͳͺͲͲͲͲȗͲǤͶͲȗͲǤʹͲ
α•ǤͳǡͻͶǡͶͲͲ
ʹǤ Š‡ –ƒš Ž‹ƒ„‹Ž‹–› ‹• •—„Œ‡…– –‘ •‡–Ǧ‘ˆˆ ‘ˆ  ˆ‘” ™‹‹‰ ˆ”‘ Ž‘––‡”‹‡• ƒ† ‹–‡”‡•– ˆ”‘ Ž‹•–‡†
†‡„‡–—”‡•Ǥ

’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
(A) Computation of Total Income

Income from salary Rs. Rs.

ƒ•‹…•ƒŽƒ”›ȋͳͷͲͲͲȗͳʹȌ ͳͺͲǡͲͲͲ
‡ƒ”‡••ŽŽ‘™ƒ…‡ȋͳͺͲǡͲͲͲȗͲǤͶͲȌ ͹ʹǡͲͲͲ
ȋˆ—ŽŽ›–ƒšƒ„Ž‡Ȍȋ͵ͲͲȗͳʹȌ ͵͸ͲͲ
Š‹Ž†”‡†—…ƒ–‹‘ŽŽ‘™ƒ…‡ ͶͺͲͲ
Less:š‡’–  ͶͺͲͲ
”ƒ•’‘”–ƒŽŽ‘™ƒ…‡ ʹͶͲͲͲ
Less:š‡’–  ʹͶͲͲͲ
‘—•‡‡–ŽŽ‘™ƒ…‡ȋ‘–‡Ȍ ͹ʹǡͲͲͲ
—…ŠŽŽ‘™ƒ…‡ ʹͶͲͲ
‡†‹…ƒŽŽŽ‘™ƒ…‡ ͳʹͲͲͲ
Less:‡†—…–‹‘—†‡”•‡…–‹‘ͳ͸ 
Taxable Salary 3,70,800
Income from house property

”‘••ƒ—ƒŽƒŽ—‡ȋ‡–‡…‡‹˜‡†ͶͲǡͲͲͲȗͳʹȌ ͶǡͺͲǡͲͲͲ
Less:—‹…‹’ƒŽƒš‡• ȋ͵ʹǡͲͲͲȌ
‡–ƒ—ƒŽƒŽ—‡ ͶǡͶͺǡͲͲͲ
Less: –ƒ†ƒ”†‡†—…–‹‘̷͵ͲΨ‘ˆͶǡͶͺǡͲͲͲ ȋͳǡ͵ͶǡͶͲͲȌ
Less:–‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡† ȋ͹ͷǡͲͲͲȌ
Income from House property 2,38,600
…‘‡ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘
‹”ȋš‡’–Ȍ 
 ȋš‡’–Ȍ  
…‘‡—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 401

‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•—Ȁ•ͳͳʹ ʹǡʹͷǡͲͲͲ
Š‘”––‡”ƒ’‹–ƒŽ
ƒ‹—Ȁ•ͳͳͳ ͳǡͲͳǡͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡•
‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ ͳʹǡͲͲͲ
–‡”‡•–”‡…‡‹˜‡†‘Ž‹•–‡††‡„‡–—”‡• ͳǡͶͲǡͲͲͲ
‹‹‰ˆ”‘‘––‡”‹‡• ͷͲǡͲͲͲ

‹ˆ–‹‹† ͷͲǡͲͲͲ ʹͷʹǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳͳǡͺ͹ǡͶͲͲ
‡••ǣ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ 
Total Income 11,87,400

ȋȌ‘’—–ƒ–‹‘‘ˆ–ƒš‘‘–ƒŽ…‘‡

ƒš‘™‹‹‰ˆ”‘Ž‘––‡”‹‡•ȋ͵ͲΨ‘ˆ•ǤͷͲǡͲͲͲȌ ͳͷǡͲͲͲ
ƒš‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋʹͲΨ‘ˆ•ǤʹǡʹͷǡͲͲͲȌ ͶͷͲͲͲ
ƒŽƒ…‡‘ˆ‘–ƒŽ…‘‡•ǤͻǡͳʹǡͶͲͲ ͸ͳǡͺ͸Ͳ
‘–ƒŽ–ƒš ͳǡʹͳǡͺ͸Ͳ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘…‡••ƒ–ͶΨ Ͷͺ͹ͶǤͶͲ
‘–ƒŽŽ‹ƒ„‹Ž‹–› ͳǡʹ͸ǡ͹͵ͶǤͶͲ
‘–ƒŽŽ‹ƒ„‹Ž‹–›ȋ”‘—†‘ˆˆȌ 1,26,730

Notesǣ
ͳǤ š‡’–‹‘ ˆ”‘ ‘—•‡ ‡– ŽŽ‘™ƒ…‡ Ȁ Š‹Ž†”‡ †—…ƒ–‹‘ ƒŽŽ‘™ƒ…‡ǡ –ƒ†ƒ”† ‡†—…–‹‘ǡ
‡†—…–‹‘—†‡”•‡…–‹‘ͺͲƬͺͲ
‹•‘–ƒŽŽ‘™‡†
ʹǤ Š‡ –ƒš Ž‹ƒ„‹Ž‹–› ‹• •—„Œ‡…– –‘ •‡–Ǧ‘ˆˆ ‘ˆ  ˆ‘” ™‹‹‰ ˆ”‘ Ž‘––‡”‹‡• ƒ† ‹–‡”‡•– ˆ”‘ Ž‹•–‡†
†‡„‡–—”‡•Ǥ

Illustration 4:
”Ǥƒ‰‡†͸ʹ›‡ƒ”•ǡ”‡•‹†‡–‹†‹˜‹†—ƒŽˆ—”‹•Š‡•–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•”‡Ž‡˜ƒ–ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”
ʹͲʹʹǦʹ͵ǣ

”‘ϐ‹–ƒ†‘••……‘—–
Particulars Amount (Rs.) Particulars Amount (Rs.)
ƒŽƒ”‹‡• ͵ͲͲͲͲ
”‘••’”‘ϐ‹– Ͷ͵͸ͲͲͲ

‡‡”ƒŽš’‡•‡• ͶͷͲͲͲ ‘‹••‹‘ ͳʹͲͲͲͲ
ƒ†‡„–• ͳͷͲͲͲ —†”›‡…‡‹’–• ͶͲͲͲͲ
‡•‡”˜‡ˆ‘”Ž‘••‡• ͵ͲͲͲ Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹ ͵ͲͲͲͲ
•—”ƒ…‡ ͷʹͲͲ ‹•…‘—– ʹͲͲͲ
†˜‡”–‹•‡‡– ͳͲͲͲͲ ”‘ϐ‹–‘•ƒŽ‡‘ˆ‹’‘”– ͳͲͲͲͲͲ
Ž‹…‡•‡
Addǣ‘—–•–ƒ†‹‰ʹͲͲͲ ͳʹͲͲͲ
402 Lesson 7 Ȉ EP-TL

–‡”‡•–‘…ƒ’‹–ƒŽ ͶͷͲͲ
–‡”‡•–‘„ƒŽ‘ƒ ͳʹͷͲͲ
š’‡†‹–—”‡ ‘ ƒ…“—‹•‹–‹‘ ‘ˆ ’ƒ–‡– ͳ͸ͲͲͲ
ƒ† ’—––‘—•‡‘͵ͲǤͲ͸Ǥʹͳ
‡’”‡…‹ƒ–‹‘‘Žƒ– ʹͶͲͲͲ
‡’”‡…‹ƒ–‹‘‘„—‹Ž†‹‰ ͳͲͲͲͲ
‡’”‡…‹ƒ–‹‘‘ —”‹–—”‡ ͶͲͲͲ
”‘˜‹•‹‘ˆ‘”‘—–•–ƒ†‹‰
Ž‹ƒ„‹Ž‹–› ͳʹͲͲͲ
ƒšƒ–‹‘”‡•‡”˜‡ ͳʹͲͲͲ
‘••„›ϐ‹”‡‘ˆƒ’ƒ”–‘ˆ„—‹Ž†‹‰ȋ‹•—”‡†Ȍ ͺͲͲͲ
‡–’”‘ϐ‹– ͷͳͶͺͲͲ
Total 728000 Total 728000
Other information
ͳǤ ƒŽ‘ƒ‹•—•‡†ˆ‘”„—•‹‡••’—”’‘•‡•Ǥ
ʹǤ Š‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘ƒ•’‡”–ƒš”ƒ–‡•ǡ‹”‡•’‡…–‘ˆ’Žƒ–ǡ„—‹Ž†‹‰ǡˆ—”‹–—”‡ǡƒ‘—–•–‘•Ǥ
ʹͲͲͲͲǡͳʹͲͲͲǡ͹ͶͲͲ”‡•’‡…–‹˜‡Ž›Ǥ
͵Ǥ ƒŽƒ”›‹…Ž—†‡’ƒ›‡––‘ƒ”‡Žƒ–‹˜‡™Š‹…Š‹•—”‡ƒ•‘ƒ„Ž‡–‘–Š‡‡š–‡–‘ˆ•ǤͷͲͲͲǤ
ͶǤ —–‘ˆ
Ž‹ƒ„‹Ž‹–›•ǤʹͲͲͲ‹•’ƒ‹†‘ͲͶǤͲ͹Ǥʹʹƒ†•Ǥ͸ͲͲͲ‹•’ƒ‹†‘Ͳ͵ǤͳͲǤʹʹǤŠ‡„ƒŽƒ…‡‹••–‹ŽŽ
‘—–•–ƒ†‹‰Ǥ—‡†ƒ–‡‘ˆϐ‹ŽŽ‹‰–Š‡”‡–—”‘ˆ‹…‘‡‹•͵ͳǤ͹Ǥʹʹ
ͷǤ …‘‡‘ˆˆ”‘‘–Š‡”•‘—”…‡•‹••ǤʹͶͲͲͲǤ
͸Ǥ ’ƒ‹†‡†‹…ƒŽ‹•—”ƒ…‡’”‡‹—•Ǥͳ͸ͲͲͲˆ‘”Š‹•‡Žˆƒ†•Ǥͳ͸ͲͲͲˆ‘”Š‹•‘–Š‡”ȋ†‡’‡†‡–Ȍ
͹Ǥ ”‡’ƒ‹†Š‘—•‹‰Ž‘ƒ–‘–Š‡‡š–‡–‘ˆ•ǤͶͷͲͲͲǤ

‡–‡”‹‡–Š‡–ƒšƒ„Ž‡‹…‘‡ƒ†–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ”Ǥˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ƒ••—‹‰‹•‘–
ƒ’’Ž‹…ƒ„Ž‡‘
Ǥ
••—‡••‡•‡‡Šƒ•‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ
Solution:
Computation of total income of Mr. X for the AY 2022-23

Particular Rs.
”‘ϐ‹–ƒ†‰ƒ‹ˆ”‘„—•‹‡••’”‘ˆ‡••‹‘ȋ‘–‡Ȍ ͷ͵͹ͻͲͲ
…‘‡—†‡”–Š‡Š‡ƒ†…ƒ’‹–ƒŽ‰ƒ‹ȏ
Ȑ ͵ͲͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡• ʹͶͲͲͲ

”‘••‘–ƒŽ…‘‡ ͷͻͳͻͲͲ
Lessǣ‡†—…–‹‘
ͺͲ‡’ƒ›‡–‘ˆ‘—•‹‰‘ƒ ȋͶͷͲͲͲȌ
ͺͲ‡†‹…ƒŽ•—”ƒ…‡”‡‹— ȋ͵ʹͲͲͲȌ
Total Income ͷͳͶͻͲͲ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 403

Computation of Tax on Total Income

ƒš‘•Ǥ͵ͲͲͲͲͲ ‹Ž
ƒš‘•ǤʹͲͲͲͲͲ̷ͷΨ ͳͲͲͲͲ
ƒŽƒ…‡‘ˆ‘–ƒŽ…‘‡ͳͶͻͲͲ̷ʹͲΨ ʹͻͺͲ
‘–ƒŽ–ƒš ͳʹͻͺͲ
Addǣ‡ƒŽ–Šƒ††—…ƒ–‹‘…‡••ƒ–ͶΨ ͷͳͻǤʹ
‘–ƒŽŽ‹ƒ„‹Ž‹–› ͳ͵ͶͻͻǤʹ
‘–ƒŽŽ‹ƒ„‹Ž‹–›ȋ”‘—†‘ˆˆȌ ͳ͵ǡͷͲͲ

Working Note:

ƒŽ…—Žƒ–‹‘‘ˆ—•‹‡••…‘‡

Particular Rs.
”‘ϐ‹–ƒ•’‡”ƬȀ ͷͳͶͺͲͲ
Addǣƒ†‹••‹„Ž‡š’‡•‡•
‡•‡”˜‡ˆ‘”Ž‘••‡• ͵ͲͲͲ
–‡”‡•–‘…ƒ’‹–ƒŽ ͶͷͲͲ
ƒ–‡–”‹‰Š–ȏͳ͸ͲͲͲǦʹͷΨ‘ˆͳ͸ͲͲͲȐ ͳʹͲͲͲ
š…‡•••ƒŽƒ”›’ƒ‹†–‘”‡Žƒ–‹˜‡ ͷͲͲͲ
—–•–ƒ†‹‰
Ž‹ƒ„‹Ž‹–›ȏͳʹͲͲͲǦʹͲͲͲȐ ͳͲͲͲͲ
ƒšƒ–‹‘”‡•‡”˜‡ ͳʹͲͲͲ
‘••„›ϐ‹”‡‘ˆ’ƒ”–‘ˆ„—‹Ž†‹‰ ͺͲͲͲ
Less ǣ†‹••‹„Ž‡š’‡•‡•
‡’”‡…‹ƒ–‹‘ȏ͵ͻͶͲͲǦ͵ͺͲͲͲȐ ȋͳͶͲͲȌ
Less ǣ…‘‡–ƒšƒ„Ž‡—†‡”Š‡ƒ†…ƒ’‹–ƒŽ‰ƒ‹

ȋ͵ͲͲͲͲȌ
—•‹‡••…‘‡ 537900

  ȍ Ȏ

Š‡–‡”Ǯ‹†——†‹˜‹†‡†ˆƒ‹Ž›ǯŠƒ•‘–„‡‡†‡ϐ‹‡†‹–Š‡…‘‡Ǧ–ƒš…–„—–‹–‹•–”‡ƒ–‡†ƒ•ƒ•‡’ƒ”ƒ–‡‡–‹–›
‘”’‡”•‘—†‡”•‡…–‹‘ʹȋ͵ͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳˆ‘”–Š‡’—”’‘•‡‘ˆƒ••‡••‡–—†‡”–Š‡…–Ǥ†‡”
‹†— ƒ™ǡ ƒ   ‹• ƒ ˆƒ‹Ž› ™Š‹…Š …‘•‹•–• ‘ˆ ƒŽŽ ’‡”•‘• Ž‹‡ƒŽŽ› †‡•…‡†‡† ˆ”‘ ƒ …‘‘ ƒ…‡•–‘” ƒ†
‹…Ž—†‡•–Š‡‹”™‹˜‡•ƒ†—ƒ””‹‡††ƒ—‰Š–‡”•Ǥ ƒ‹ƒ†‹Šˆƒ‹Ž‹‡•‡˜‡–Š‘—‰Šƒ”‡‘–‰‘˜‡”‡†„›–Š‡‹†—
ƒ™ǡ „—– –Š‡› ƒ”‡ –”‡ƒ–‡† ƒ•   —†‡” –Š‡ …–Ǥ    …ƒ‘– „‡ …”‡ƒ–‡† —†‡” ƒ …‘–”ƒ…– ƒ† ‹• …”‡ƒ–‡†
ƒ—–‘ƒ–‹…ƒŽŽ›‹ƒ‹†— ƒ‹Ž›Ǥ”‡ƒ–‹‘‘ˆƒ ‹•ƒ
‘†Ǧ‰‹ˆ–‡†’Š‡‘‡‘•‹…‡„‹”–Š‘ˆƒ…Š‹Ž†–‘ƒƒ””‹‡†
‹†—ǡƒ—–‘ƒ–‹…ƒŽŽ›…”‡ƒ–‡•ƒ‡™ Ǥ–‹•‘–ƒ–ƒŽŽ‡…‡••ƒ”›–Šƒ–‡˜‡”› —•–Šƒ˜‡Œ‘‹–’”‘’‡”–›‘”ˆƒ‹Ž›
‹…‘‡ǤȏR. Subramania Iyer v. CIT (1955) 28, ITR, 352ȐǤ‘™‡˜‡”ǡ–‘„‡…‘‡ƒƒ••‡••‡‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡ
–Š‡”‡—•–„‡Ǯ‹…‘‡Ǧ›‹‡Ž†‹‰ǯŒ‘‹–’”‘’‡”–›‘ˆ–Š‡ˆƒ‹Ž›Ǥ
 ƒ›…‘•‹•–‘ˆƒ—„‡”‘ˆ•ƒŽŽ‡” •Ǥ•ƒŽŽ‡” Šƒ•ƒŽ‡‰ƒŽ‡š‹•–‡…‡ƒ†ƒ›„‡ƒ••‡••ƒ„Ž‡ƒ•ƒ—‹–
†‹•–‹…–ˆ”‘–Š‡ƒ’‡šŒ‘‹–ˆƒ‹Ž›‡˜‡™Š‡–Š‡„‹‰‰‡” ‹•‹’Žƒ…‡ȏCIT v. Khanna (1963) 49 ITR 232ȐǤ
 404 Lesson 7 Ȉ EP-TL

Š‡—’”‡‡‘—”–ǯ•†‡…‹•‹‘‹–Š‡…ƒ•‡‘ˆSurjit Lal Chhabra v. CIT (1975 101 ITR 776) Šƒ•…‘‡–‘•–ƒ›ƒ•‘‡‘ˆ

–Š‡Ž‡ƒ†‹‰…ƒ•‡Žƒ™•ǤŠ‡”ƒ–‹‘Žƒ‹††‘™„›–Š‡—’”‡‡‘—”–Šƒ†„‡‡ƒ’’Ž‹‡†„›–Š‡†Š”ƒ”ƒ†‡•Šǡ”‹••ƒ
ƒ†ƒ†”ƒ•‹‰Š‘—”–•ǡˆ‘ŽŽ‘™‡†„›‘„ƒ›ǡƒ–ƒǡƒ†Š›ƒ”ƒ†‡•Šƒ†‡ŽŠ‹‹‰Š‘—”–•ƒ†”‡Ž‹‡†—’‘„›–Š‡
—Œƒ„‹‰Š‘—”–Ǥ–Š‡Žƒ–‡•–…ƒ•‡ǡ–Š‡‡ŽŠ‹‹‰Š‘—”–Š‡Ž†‹Commissioner of Income-tax v. S.P. Chopra (1991,
191 ITR 455) –Šƒ––Š‡‹…‘‡ˆ”‘–Š‡ŠƒŽˆ•Šƒ”‡‘ˆ–Š‡’”‘’‡”–›Šƒ†–‘„‡–”‡ƒ–‡†ƒ•–Š‡‹†‹˜‹†—ƒŽ‹…‘‡‘ˆ–Š‡
ƒ••‡••‡‡—†‡”–Š‡’‡”•‘ƒŽŽƒ™ƒ†‘–ƒ•‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›ǤŠ‡…Šƒ”ƒ…–‡”‘ˆ–Š‡’”‘’‡”–›Šƒ†–‘„‡†‡–‡”‹‡†
‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’‡”•‘ƒŽŽƒ™‘ˆ–Š‡ƒ••‡••‡‡ƒ†‘–‘–Š‡„ƒ•‹•‘ˆŠ‘™–Š‡’”‘’‡”–›Šƒ†„‡‡–”‡ƒ–‡†„›
–Š‡”‡˜‡—‡‹”‡•’‡…–‘ˆ‡ƒ”Ž‹‡”ƒ••‡••‡–•Ǥ
•‘…‘…‡‹˜‡†‘”‹Š‹•‘–Š‡”ǯ•™‘„‹•‡“—ƒŽ‹ƒ›”‡•’‡…–•–‘ƒ•‘ƒ…–—ƒŽŽ›‹‡š‹•–‡…‡ǡ˜‹œǤǡ‹Š‡”‹–ƒ…‡ǡ
’ƒ”–‹–‹‘ǡ•—”˜‹˜‘”•Š‹’‡–…Ǥ—––Š‹•†‘…–”‹‡†‘‡•‘–ƒ’’Ž›–‘–Š‡…‘‡Ǧ–ƒš…–Ǥ‡…‡ǡƒ•‘…‘…‡‹˜‡†‹•‘–
–”‡ƒ–‡†ƒ‡„‡”‘ˆ–Š‡ǤǤ Ǥˆ‘”…‘‡Ǧ–ƒš’—”’‘•‡•ǤȏIS. Srinivasan v. C.I.T., (1966) 60, ITR, p.36 (S.C.)ȐǤ
ƒ‹ƒ†‹Š—†‹˜‹†‡†ˆƒ‹Ž‹‡•ƒ”‡ƒŽ•‘–”‡ƒ–‡†ƒ•‹†——†‹˜‹†‡†ˆƒ‹Ž‹‡•—Ž‡••ǡ—†‡”•’‡…‹ƒŽ…‹”…—•–ƒ…‡•ǡ
–Š‡ƒ••‡••‡‡…Žƒ‹•‘––‘„‡–”‡ƒ–‡†ƒ••—…ŠǤˆ•—…Š…Žƒ‹‹•ƒ†‡ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽŠƒ˜‡–‘’”‘˜‡–Šƒ––Š‡”‡‹•
•‘‡•—…Š…—•–‘‹Š‹•ˆƒ‹Ž›‘ƒ……‘—–‘ˆ™Š‹…Š‹–…ƒ‘–„‡–”‡ƒ–‡†ƒ•ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›Ǥ
‹†—†‘‡•‘–…‡ƒ•‡–‘„‡ƒ‹†—‡”‡Ž›„‡…ƒ—•‡Š‡†‡…Žƒ”‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‡’‡…‹ƒŽƒ””‹ƒ‰‡…–ǡͳͺ͹ʹǡ
–Šƒ–Š‡†‘‡•‘–’”‘ˆ‡••‹†—‡Ž‹‰‹‘Ǥ—…Šƒ‹†—†‘‡•ˆ‘”ƒǤǤ Ǥ™‹–ŠŠ‹•…Š‹Ž†”‡ˆ”‘•—…Šƒ””‹ƒ‰‡Ǥ
ȏCIT v. Partap Chand (1959), 36 ITR, 262ȐǤ ‹‹Žƒ”Ž›ǡ ƒ —•Ž‹ ˆƒ‹Ž› ‰‘˜‡”‡† „› –Š‡ ƒ”—ƒƒ–Šƒ›ƒ Žƒ™
…‘•–‹–—–‡•Ǯƒ”™ƒ†ǯ‘”ǮŠƒ˜ƒœŠ‹ǯƒ†ˆƒŽŽ•™‹–Š‹–Š‡†‡ϐ‹‹–‹‘‘ˆƒǤǤ Ǥ[V.K.P. Abdul Kadar Haji v. Ag. ITO (1967)
66, ITR, 173].
ˆƒ‹†—‰‡–•…‘˜‡”–‡†ƒ•ƒŠ”‹•–‹ƒǡ–Š‡ˆƒ‹Ž›‘ˆ•—…Šƒ’‡”•‘™‹ŽŽ‘–„‡ƒ Ǥ‘™‡˜‡”ƒ‹†—ǡƒŽ‘‰™‹–Š
Š‹••‘ȋ„›ƒ…Š”‹•–‹ƒ™‹ˆ‡Ȍ™Š‘Šƒ•„‡‡„”‘—‰Š–—’ƒ•ƒ‹†—™‹ŽŽ„‡ƒ Ǥ[CWT v. R. Sridharan (1976) 104,
ITR, 436 (S.C.)].
A Hindu Joint Family consists of two types of members:
ͳǤ Coparcenersǣ Š‡ Ž‹‡ƒŽ ƒŽ‡ †‡•…‡†ƒ–• ‘ˆ ƒ ’‡”•‘ —’ –‘ –Š‡ –Š‹”† ‰‡‡”ƒ–‹‘ ‘ˆ •—…Š ’‡”•‘ ƒ”‡
‘™ƒ•…‘’ƒ”…‡‡”•ǤŠ‡…‘’ƒ”…‡‡”•ƒ…“—‹”‡ǡ‘„‹”–Šǡ‘™‡”•Š‹’‹–Š‡ƒ…‡•–”ƒŽ’”‘’‡”–‹‡•‘ˆ•—…Š
ƒ•…‡†ƒ–ƒ†Šƒ˜‡ƒ”‹‰Š––‘…Žƒ‹’ƒ”–‹–‹‘‘ˆ•—…Š’”‘’‡”–›ƒ–ƒ›–‹‡Ǥ‘™‡˜‡”ǡ™Ǥ‡ǤˆǤͻǤͻǤʹͲͲͷ†—‡–‘
ƒ‡†‡–‘ˆ‹†——……‡••‹‘…–ǡ–Š‡†ƒ—‰Š–‡”‘ˆƒ…‘’ƒ”…‡‡”•ŠƒŽŽ„›„‹”–Š„‡…‘‡ƒ…‘’ƒ”…‡‡”‹
Š‡”‘™”‹‰Š–‹–Š‡•ƒ‡ƒ‡”ƒ•–Š‡•‘Ǥ‡…‡ǡ–Š‡†ƒ—‰Š–‡”…ƒƒŽ•‘ƒ•ˆ‘”’ƒ”–‹–‹‘Ǥ
ʹǤ Other membersǣ—…Š‡„‡”•‹…Ž—†‡™‹˜‡•‘ˆƒŽ‡‡„‡”•‘ˆ–Š‡ˆƒ‹Ž›ƒ†‘–Š‡”ƒŽ‡‡„‡”•Ǥ
‹†‘™‘”™‹†‘™•‘ˆ†‡…‡ƒ•‡†ƒŽ‡‡„‡”‘”‡„‡”•Ǥ[Gowli Buddanna v. C.I.T. (1966) 60, ITR, p. 293
(S.C.)]

‘™‡˜‡”ǡƒ—ƒ””‹‡†…‘’ƒ”…‡‡”™Š‘”‡…‡‹˜‡••Šƒ”‡‘–Š‡’ƒ”–‹–‹‘‘ˆŒ‘‹–ˆƒ‹Ž›’”‘’‡”–‹‡•ǡ…ƒ‘–ˆ‘”ƒ
‹†——†‹˜‹†‡†ˆƒ‹Ž›—Ž‡••Š‡ƒ””‹‡•Ǥˆ–‡”Š‹•ƒ””‹ƒ‰‡ǡŠ‡…ƒŠ‘Ž†–Š‡’”‘’‡”–›”‡…‡‹˜‡†ˆ”‘ˆƒ‹Ž›ƒ•
Œ‘‹–ˆƒ‹Ž›’”‘’‡”–›…‘•‹•–‹‰‘ˆŠ‹•‡Žˆƒ†Š‹•™‹ˆ‡Ǥ[C. Krishna Prasadv. C.I.T. (1974) 97, p. 493 (S.C.)].
The joint property of the HUF is managed through Kartaǣ”‘’‡”–›‘ˆ–Š‡ˆƒ‹Ž›‹•‘”†‹ƒ”‹Ž›ƒƒ‰‡†„›–Š‡
ˆƒ–Š‡”‘”‘–Š‡”•‡‹‘”‡„‡”ˆ‘”–Š‡–‹‡„‡‹‰‘ˆ–Š‡ˆƒ‹Ž›Ǥ‡‹•…ƒŽŽ‡†ƒ”–ƒǤ‘™‡˜‡”ǡ–Š‡•‡‹‘”‡„‡”ƒ›
‰‹˜‡—’Š‹•”‹‰Š–‘ˆƒƒ‰‡‡–ƒ†ƒŒ—‹‘”‡„‡”ƒ›„‡ƒ’’‘‹–‡†ƒ•ƒ”–ƒ™‹–Š–Š‡…‘•‡–‘ˆƒŽŽ‘–Š‡”
‡„‡”•Ǥȏƒ”‡†”ƒ—ƒ” Ǥ‘†‹˜Ǥȋͳͻ͹͸ȌͳͲͷǡǡͳͲͻȋǤǤȌȐǤ–Š‡ƒ„•‡…‡‘ˆƒƒŽ‡‡„‡”‹–Š‡
ˆƒ‹Ž›‘”™Š‡ƒŽŽƒŽ‡‡„‡”•ƒ”‡‹‘”•ǡƒ™‘ƒ‡„‡”…ƒ„‡–”‡ƒ–‡†ƒ•ƒƒ‰‡”‘ˆ–Š‡ˆƒ‹Ž›ˆ‘”‹…‘‡Ǧ
–ƒš’—”’‘•‡•ǤȏSmt. Champa Kumari Singhi v. Addl. Member of the Board of Revenue (1962) 46, ITR, p. 81ȐǤ
School of Hindu Lawǣ……‘”†‹‰–‘‹†—ƒ™ǡ •ƒ”‡‰‘˜‡”‡†„›–™‘•…Š‘‘Ž•˜‹œǤǡ‹–ƒ•Šƒ”ƒƒ†ƒ›ƒ„Šƒ‰ƒǤ
Mitakshara Schoolƒ’’Ž‹‡•–‘™Š‘Ž‡‘ˆ†‹ƒ‡š…‡’––Š‡•–ƒ–‡•‘ˆ‡•–‡‰ƒŽƒ†••ƒǤ
Dayabhaga Schoolƒ’’Ž‹‡•–‘–Š‡–ƒ–‡•‘ˆ‡•–‡‰ƒŽƒ†••ƒǤŠ‡†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡–™‘•…Š‘‘Ž•‹•ƒ•
—†‡”ǣ
ȋ‹Ȍ Foundationǣ–Š‡‹–ƒƒ•Šƒ”ƒ…Š‘‘Žǡ–Š‡ˆ‘—†ƒ–‹‘‘ˆƒ…‘’ƒ”…‡ƒ”›‹•Žƒ‹††‘™™Š‡ƒ…Š‹Ž†‹•„‘”
–‘–Š‡‹–ƒ•Šƒ”ƒˆƒ–Š‡”Ǥ†‡”–Š‡ƒ›ƒ„Šƒ‰ƒ•…Š‘‘Ž–Š‡ˆ‘—†ƒ–‹‘‘ˆƒ…‘’ƒ”…‡ƒ”›‹•Žƒ‹†‘–Š‡†‡ƒ–Š
‘ˆ–Š‡ˆƒ–Š‡”Ž‡ƒ˜‹‰ǡƒ••—”˜‹˜‘”•ǡ‘‡‘”‘”‡•‘•Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 405

ȋ‹‹Ȍ Right to partitionǣ‹–ƒ•Šƒ”ƒ•‘ǡ‹™Š‘–Š‡‹–‡”‡•–‹ˆƒ‹Ž›’”‘’‡”–›‹•˜‡•–‡†„›„‹”–ŠǡƒŽŽƒŽ‘‰

’‘••‡••‡•ƒ”‹‰Š––‘†‡ƒ†’ƒ”–‹–‹‘Ǥƒ›ƒ„Šƒ‰ƒ•‘ǡ‘–Š‡‘–Š‡”Šƒ†ƒ…“—‹”‡•‘‹–‡”‡•–‹–Š‡
ˆƒ‹Ž›’”‘’‡”–›„›„‹”–Šƒ†ǡ…‘•‡“—‡–Ž›ǡŠƒ•‘”‹‰Š––‘†‡ƒ†’ƒ”–‹–‹‘‘ˆ–Š‡ ’”‘’‡”–›ˆ”‘Š‹•
ˆƒ–Š‡”Ǥ
ȋ‹‹‹Ȍ Quantum of shareǣ†‡”‹–ƒ•Šƒ”ƒƒ™ǡ‡ƒ…Š…‘’ƒ”…‡‡”–ƒ‡•ƒ—†‡ϐ‹‡†•Šƒ”‡‹–Š‡…‘’ƒ”…‡ƒ”›
’”‘’‡”–›Ǥ Š‡ •Šƒ”‡ ‘ˆ –Š‡ ‡„‡”• †‡…”‡ƒ•‡• „› „‹”–Š ‹ –Š‡ ˆƒ‹Ž› ƒ† ‹…”‡ƒ•‡• —’‘ †‡ƒ–Š ‘ˆ ƒ
…‘’ƒ”…‡‡”Ǥƒ›ƒ„Šƒ‰ƒ…‘’ƒ”…‡‡”ǡ‘–Š‡‘–Š‡”Šƒ†ǡƒŽ™ƒ›•–ƒ‡•ƒ†‡ϐ‹‡†•Šƒ”‡‹–Š‡’”‘’‡”–›Ž‡ˆ–
„›Š‹•†‡…‡ƒ•‡†ˆƒ–Š‡”ǤŠ—•ǡ–Š‡Š‡‹”•‘ˆƒ†‡…‡ƒ•‡†‰‘˜‡”‡†„›–Š‡ƒ›ƒ„Šƒ‰ƒ•…Š‘‘Ž†‘‘–…‘•–‹–—–‡
ƒ ƒ—–‘ƒ–‹…ƒŽŽ›‘–Š‡†‡ƒ–Š‘ˆ–Š‡†‡…‡ƒ•‡†ƒ†…ƒ‘–„‡ƒ••‡••‡†ƒ•ƒ —Ž‡••–Š‡›Šƒ˜‡„›
—–—ƒŽ…‘•‡–ƒ‰”‡‡†–‘ˆ‘”ƒŒ‘‹–ˆƒ‹Ž›Ǥ
ȋ‹˜Ȍ
‹ˆ–‘—–‘ˆƒ…‡•–”ƒŽ’”‘’‡”–›ǣ‹–ƒ•Šƒ”ƒƒ”–ƒƒ›ƒ‡ƒ‰‹ˆ–‘ˆ‘˜ƒ„Ž‡’”‘’‡”–›‘ˆ–Š‡ˆƒ‹Ž›ǡ
‘—–‘ˆŽ‘˜‡ƒ†ƒˆˆ‡…–‹‘ǡ™‹–Š‹”‡ƒ•‘ƒ„Ž‡Ž‹‹–•Ǥ‡…ƒƒŽ•‘ƒ‡ƒ‰‹ˆ–‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–‹‡•ǡ™‹–Š‹
”‡ƒ•‘ƒ„Ž‡ Ž‹‹–• ˆ‘” ’‹‘—• ’—”’‘•‡•Ǣ ‹Ǥ‡Ǥǡ ˆ‘” …Šƒ”‹–ƒ„Ž‡ ƒ† ”‡Ž‹‰‹‘—• ’—”’‘•‡• ‘” –‘ ƒ †ƒ—‰Š–‡” ‹
ˆ—Žϐ‹Ž‡–‘ˆƒ—’–‹ƒŽ’”‘‹•‡‡–…Ǥ‘™‡˜‡”ǡƒ‰‹ˆ––‘ƒ•–”ƒ‰‡”‹•˜‘‹†Ǥ–Š‡…‘–”ƒ”›ǡƒƒ›ƒ„Šƒ‰ƒ
ˆƒ–Š‡”…ƒƒŽ‹‡ƒ–‡ƒ…‡•–”ƒŽ’”‘’‡”–›ǡ„‘–Š‘˜ƒ„Ž‡ƒ•™‡ŽŽƒ•‹‘˜ƒ„Ž‡ǡ„›•ƒŽ‡ǡ‰‹ˆ–ǡ™‹ŽŽ‘”‘–Š‡”™‹•‡
‹–Š‡•ƒ‡™ƒ›ƒ•Š‡…ƒ†‹•’‘•‡‘ˆŠ‹••‡’ƒ”ƒ–‡’”‘’‡”–›Ǥ

Position under Hindu Succession Act, 1956

Š‹• …– …ƒ‡ ‹–‘ ˆ‘”…‡ ‘ ƒ† ˆ”‘ ͳ͹–Š —‡ǡ ͳͻͷ͸Ǥ – Žƒ›• †‘™ ƒ —‹ˆ‘” ƒ† …‘’”‡Š‡•‹˜‡ •›•–‡ ‘ˆ
‹Š‡”‹–ƒ…‡ƒ†ƒ’’Ž‹‡•–‘’‡”•‘•‰‘˜‡”‡†„›–Š‡‹–ƒ•Šƒ”ƒƒ•™‡ŽŽƒ•–Š‡ƒ›ƒ„Šƒ‰ƒ…Š‘‘Ž•ǡ•—’‡”•‡†‹‰ƒ†
ƒ„”‘‰ƒ–‹‰ƒŽŽ’”‡˜‹‘—•Žƒ™‘”…—•–‘•‘”—•ƒ‰‡Šƒ˜‹‰–Š‡ˆ‘”…‡‘ˆŽƒ™Ǥ
†‡”–Š‹•…–ǡ–Š‡Š‡‹”•‘ˆƒƒŽ‡‹†—†›‹‰‹–‡•–ƒ–‡‘‘”ƒˆ–‡”ͳ͹–Š —‡ǡͳͻͷ͸ƒ”‡†‹˜‹†‡†‹–‘–Š”‡‡…Žƒ••‡•Ǥ
Žƒ••Š‡‹”•‰‡––Š‡”‹‰Š––‘–Š‡†‡…‡ƒ•‡†ǯ•’”‘’‡”–›•‹—Ž–ƒ‡‘—•Ž›–‘–Š‡‡š…Ž—•‹‘‘ˆƒŽŽ‘–Š‡”Žƒ••‡•‘ˆŠ‡‹”•Ǥ
Žƒ••”‡Žƒ–‹‘••—……‡‡†‘Ž›‹ˆ–Š‡”‡‹•‘…Žƒ••”‡Žƒ–‹‘ƒ†ǡ–Š‡Š‡‹”•‹–Š‡ϐ‹”•–‡–”›‘ˆ…Žƒ••„‡‹‰’”‡ˆ‡””‡†
–‘Š‡‹”•‹–Š‡•‡…‘†‡–”›ǡƒ†•‘‘ǡ„—–Š‡‹”•‹ƒ›‘‡‡–”›–ƒ‹‰‹‡“—ƒŽ•Šƒ”‡•ƒ‘‰•––Š‡•‡Ž˜‡•Ǥ
Š‡•–—†‡–••Š‘—Ž†‘–‡–Šƒ–‡…–‹‘Ͷ‘ˆ–Š‡‹†——……‡••‹‘…–ǡͳͻͷ͸…Ž‡ƒ”Ž›Žƒ›•†‘™–Šƒ–Dz•ƒ˜‡ƒ•‘–Š‡”™‹•‡
‡š’”‡••Ž›’”‘˜‹†‡†‹–Š‡…–ǡƒ›–‡š–ǡ”—Ž‡‘”‹–‡”’”‡–ƒ–‹‘‘ˆ‹†—ƒ™‘”ƒ›…—•–‘‘”—•ƒ‰‡ƒ•’ƒ”–‘ˆ–Šƒ–
Žƒ™‹ˆ‘”…‡‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆ–Š‡…–•ŠƒŽŽ…‡ƒ•‡–‘Šƒ˜‡‡ˆˆ‡…–™‹–Š”‡•’‡…––‘ƒ›ƒ––‡”
ˆ‘”™Š‹…Š’”‘˜‹•‹‘‹•ƒ†‡‹–Š‡…–Ǥdz†ǡ‡…–‹‘ͺ‘ˆ–Š‡‹†——……‡••‹‘…–ǡͳͻͷ͸ǡŽƒ›•†‘™–Š‡•…Š‡‡‘ˆ
•—……‡••‹‘–‘–Š‡’”‘’‡”–›‘ˆƒ‹†—†›‹‰‹–‡•–ƒ–‡ǤŠ‡•…Š‡†—Ž‡…Žƒ••‹ϐ‹‡•–Š‡Š‡‹”•‘™Š‹…Š•—…Š’”‘’‡”–›•ŠƒŽŽ
†‡˜‘Ž˜‡Ǥ
Š‡’”‡ˆ‡”‡–‹ƒŽŠ‡‹”•‘ˆ…Žƒ••ƒ”‡ƒ•—†‡”ǣ
ȋͳȌ‘ȋʹȌƒ—‰Š–‡”ȋ͵Ȍ‹†‘™ȋͶȌ‘–Š‡”ȋͷȌ‘Ȁ†ƒ—‰Š–‡”Ȁ™‹†‘™‘ˆƒ’”‡†‡…‡ƒ•‡†•‘ȋ͸Ȍ•‘Ȁ†ƒ—‰Š–‡”‘ˆƒ
’”‡†‡…‡ƒ•‡††ƒ—‰Š–‡”ȋ͹Ȍ‘Ȁ†ƒ—‰Š–‡”Ȁ™‹†‘™‘ˆƒ’”‡†‡…‡ƒ•‡†•‘‘ˆƒ’”‡†‡…‡ƒ•‡†•‘Ǥ
•‘ǯ••‘‹•‘–‡–‹‘‡†ƒ•ƒŠ‡‹”—†‡”Žƒ••‘ˆ–Š‡•…Š‡†—Ž‡ƒ†ǡ–Š‡”‡ˆ‘”‡ǡŠ‡…ƒ‘–‰‡–ƒ›”‹‰Š–‹–Š‡
’”‘’‡”–›‘ˆŠ‹•‰”ƒ†ˆƒ–Š‡”—†‡”–Š‡’”‘˜‹•‹‘ǤŠ‡”‹‰Š–‘ˆƒ•‘ǯ••‘‹Š‹•‰”ƒ†ˆƒ–Š‡”ǯ•’”‘’‡”–›†—”‹‰–Š‡
Ž‹ˆ‡–‹‡‘ˆŠ‹•ˆƒ–Š‡”™Š‹…Š‡š‹•–‡†—†‡”–Š‡‹†—ƒ™ƒ•‹ˆ‘”…‡„‡ˆ‘”‡–Š‡…–ǡ‹•‘–•ƒ˜‡†‡š’”‡••Ž›„›–Š‡…–
ƒ†ǡ–Š‡”‡ˆ‘”‡–Š‡‡ƒ”Ž‹‡”‹–‡”’”‡–ƒ–‹‘‘ˆ‹†—ƒ™‰‹˜‹‰ƒ”‹‰Š–„›„‹”–Š‹•—…Š’”‘’‡”–›Ǯ…‡ƒ•‡†–‘Šƒ˜‡‡ˆˆ‡…–ǯǤ
Š‡”‡ˆ‘”‡ǡ–Š‡’”‘’‡”–›™Š‹…Š†‡˜‘Ž˜‡•‘ƒ‹†—‘–Š‡†‡ƒ–Š‘ˆŠ‹•ˆƒ–Š‡”‹–‡•–ƒ–‡ƒˆ–‡”…‘‹‰‹–‘ˆ‘”…‡‘ˆ–Š‡
‹†——……‡••‹‘…–ǡͳͻͷ͸ǡ†‘‡•‘–…‘•–‹–—–‡ǤǤ Ǥ’”‘’‡”–›…‘•‹•–‹‰‘ˆŠ‹•‘™„”ƒ…Š‹…Ž—†‹‰Š‹••‘•Ǥ
ȏShri Vallabhdas Modani v. C.I.T. (1982) 138, ITR, p. 673ȐǤ
Š‡ŽŽƒŠƒ„ƒ†‹‰Š‘—”–ǯ•†‡…‹•‹‘•—’”ƒ‹–Š‡…ƒ•‡‘ˆŠ”‹ƒŽŽƒ„Š†ƒ•‘†ƒ‹˜Ǥ‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš
™ƒ•ˆ‘ŽŽ‘™‡†„›–Š‡†Š”ƒ”ƒ†‡•Š‹‰Š‘—”–ȋͳͻͺ͵ǡͳͶͶͳͺȌƒ†Žƒ–‡”ƒ’’”‘˜‡†„›–Š‡—’”‡‡‘—”–‹
–Š‡…ƒ•‡‘ˆ‘‹••‹‘‡”‘ˆ‡ƒŽ–ŠǦƒš˜ǤŠƒ†‡”‡ȋͳͻͺ͸ǡͳ͸ͳ͵͹ͲȌŠ‘Ž†‹‰–Šƒ–‹–‹•‘–’‘••‹„Ž‡–‘•ƒ›
–Šƒ–™Š‡ƒ•‘‹Š‡”‹–•–Š‡’”‘’‡”–›‹–Š‡•‹–—ƒ–‹‘…‘–‡’Žƒ–‡†„›–Š‡‹†——……‡••‹‘…–ǡͳͻͷ͸ǡŠ‡–ƒ‡•ƒ•
ƒ”–ƒ‘ˆŠ‹•‘™—†‹˜‹†‡†ˆƒ‹Ž›Ǥ
 406 Lesson 7 Ȉ EP-TL

COMPUTATION OF INCOME OF HINDU UNDIVIDED FAMILY ‘HUF’

…‘‡‘ˆ–Š‡ ‹•ƒ••‡••‡†ƒ•Œ‘‹–ˆƒ‹Ž›‹…‘‡‘ˆ ‹ˆ–Š‡”‡‡š‹•–•ƒ…‘Ǧ’ƒ”…‡‡”•Š‹’ƒ†Œ‘‹–’”‘’‡”–›‘ˆ
–Š‡ˆƒ‹Ž›–‹ŽŽ’ƒ”–‹–‹‘‹•…Žƒ‹‡†„›ƒ›‘ˆ‹–•…‘’ƒ”…‡‡”•Ǥ
Joint Property of the family consists of:
ȋ‹Ȍ ƒ…‡•–”ƒŽ’”‘’‡”–›™Š‹…Šƒƒ‹Š‡”‹–•ˆ”‘ƒ›‘ˆŠ‹•–Š”‡‡‹‡†‹ƒ–‡ƒŽ‡ƒ…‡•–‘”•ǡƒ‡Ž›ǡˆƒ–Š‡”ǡ
‰”ƒ†ˆƒ–Š‡”ǡ‰”‡ƒ–‰”ƒ†ˆƒ–Š‡”Ǣ
ȋ‹‹Ȍ ƒ……”‡–‹‘–Š‡”‡–‘Ǣ
ȋ‹‹‹Ȍ ƒ…“—‹•‹–‹‘™‹–ŠŒ‘‹–ˆ—†•Ǣƒ†
ȋ‹˜Ȍ •‡ŽˆǦƒ…“—‹”‡† ’”‘’‡”–› ‘ˆ ƒ› ‡„‡” –Š”‘™ „› Š‹ ‹–‘ –Š‡ …‘‘ •–‘… –‘ „‡ –”‡ƒ–‡† ƒ• ˆƒ‹Ž›
’”‘’‡”–›Ǥ–Š‡…ƒ•‡‘ˆ—•Š’ƒ‡˜‹˜ǤǤǤǤ–Š‡—’”‡‡‘—”–Šƒ•Š‡Ž†–Šƒ–ƒ‹†—ˆ‡ƒŽ‡ǡ‘–„‡‹‰ƒ
…‘’ƒ”…‡‡”ǡ…ƒ‘–„Ž‡†Š‡”•‡’ƒ”ƒ–‡’”‘’‡”–›™‹–Š ‘‹–ˆƒ‹Ž›’”‘’‡”–›Ǥ‘™‡˜‡”ǡ•Š‡…ƒƒ‡ƒ‰‹ˆ–
‘ˆŠ‡”’”‘’‡”–›‘”•‡ŽŽ–Š‡’”‘’‡”–›–‘–Š‡ˆƒ‹Ž›Ǥȏȋͳͻ͹͹ȌͳͲͻǡ’Ǥ͹͵ͲȐǤ

Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡…‘’—–‡†—†‡”–Š‡”‡Ž‡˜ƒ–Š‡ƒ†•ȋƒ•
’‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ȍƒ•‹–‹•…‘’—–‡†ˆ‘”‘–Š‡”ƒ••‡••‡‡ǯ•Ǥ…‘‡•‡š‡’–—†‡”•‡…–‹‘ͳͲ
–‘ͳ͵ƒ”‡‡š‡’–ƒ††‡†—…–‹‘•ƒŽŽ‘™ƒ„Ž‡—†‡”…Šƒ’–‡”ƒ”‡–‘„‡’”‘˜‹†‡†Ǥ‘™‡˜‡”ǡ‹–Š‹•…‘‡…–‹‘–Š‡
ˆ‘ŽŽ‘™‹‰’‘‹–•ƒ”‡™‘”–Š‘–‹‰ǣ
ȋ‹Ȍ Š‡Š‘Ž†‡”ǡ™Š‘‹•–Š‡•‡‹‘”‘•–ƒŽ‡‡„‡”‘ˆ–Š‡ˆƒ‹Ž›ǡ‘ˆƒ‹’ƒ”–‹„Ž‡‡•–ƒ–‡‹•Ž‹ƒ„Ž‡–‘–ƒš‘
‹…‘‡ˆ”‘–Šƒ–‡•–ƒ–‡‹Š‹•‹†‹˜‹†—ƒŽ…ƒ’ƒ…‹–›–Š‘—‰Š–Š‡‡•–ƒ–‡„‡Ž‘‰•–‘ Ǥ
ȋ‹‹Ȍ ‘˜‡”•‹‘ ‘ˆ •‡ŽˆǦƒ…“—‹”‡† ’”‘’‡”–› ‹–‘ Œ‘‹– ˆƒ‹Ž› ’”‘’‡”–›Ǥ ‡…–‹‘ ͸ͶȋʹȌ ’”‘˜‹†‡• –Šƒ– ™Š‡”‡ ƒ
‹†‹˜‹†—ƒŽ„‡‹‰ƒ‡„‡”‘ˆ‹†——†‹˜‹†‡†ˆƒ‹Ž›–”ƒ•ˆ‡”•Š‹••‡’ƒ”ƒ–‡’”‘’‡”–›ƒˆ–‡”͵ͳ•–‡…‡„‡”ǡ
ͳͻ͸ͻ–‘–Š‡ˆƒ‹Ž›ˆ‘”–Š‡…‘‘„‡‡ϐ‹–‘ˆ–Š‡ˆƒ‹Ž›ǡ‘–Š‡”™‹•‡–Šƒˆ‘”ƒ†‡“—ƒ–‡…‘•‹†‡”ƒ–‹‘ǡ•—…Š
’”‘’‡”–›‹•‘™ƒ•…‘˜‡”–‡†’”‘’‡”–›ǤŠ‡‹…‘‡†‡”‹˜‡†ˆ”‘–Š‡…‘˜‡”–‡†’”‘’‡”–›‘”ƒ›’ƒ”–
–Š‡”‡‘ˆ •ŠƒŽŽ „‡ ‹…Ž—†‡† ‹ –Š‡ –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ –”ƒ•ˆ‡”‘” ‹†‹˜‹†—ƒŽ ƒ† ‘– ‹ –Š‡ ‹…‘‡ ‘ˆ –Š‡
ˆƒ‹Ž›Ǥ
ȋ‹‹‹Ȍ ˆ–Š‡ˆ—†•‘ˆƒ‹†—†‹˜‹†‡†ˆƒ‹Ž›ƒ”‡‹˜‡•–‡†‹ƒ…‘’ƒ›‘”ƒϐ‹”ǡˆ‡‡•‘””‡—‡”ƒ–‹‘”‡…‡‹˜‡†
„›–Š‡‡„‡”ƒ•ƒ†‹”‡…–‘”ǡ‘”ƒ’ƒ”–‡”‹–Š‡…‘’ƒ›‘”ϐ‹”ƒ›„‡–”‡ƒ–‡†ƒ•‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›
‹…ƒ•‡–Š‡ˆ‡‡•‘””‡—‡”ƒ–‹‘‹•‡ƒ”‡†‡••‡–‹ƒŽŽ›ƒ•ƒ”‡•—Ž–‘ˆ‹˜‡•–‡–‘ˆˆ—†•Ǥ—–ǡ‹ˆ–Š‡ˆ‡‡•‘”
”‡—‡”ƒ–‹‘ ‹• ‡ƒ”‡† ‡••‡–‹ƒŽŽ› ˆ‘” •‡”˜‹…‡• ”‡†‡”‡† „› –Š‡ ‡„‡” ‹ Š‹• ’‡”•‘ƒŽ …ƒ’ƒ…‹–›ǡ –Š‡
‹…‘‡•ŠƒŽŽ…‘•–‹–—–‡–Š‡’‡”•‘ƒŽ‹…‘‡‘ˆ–Š‡‡„‡”Ǥ
ȋ‹˜Ȍ Š‡”‡ƒ‡„‡”‘ˆƒ ‹•ƒ’ƒ”–‡”‹ƒϐ‹”‘„‡ŠƒŽˆ‘ˆ–Š‡ˆƒ‹Ž›ƒ†‘’ƒ”–‹–‹‘‘ˆ–Š‡’”‘’‡”–›‘ˆ
–Š‡ˆƒ‹Ž›ǡ–Š‡•Šƒ”‡‹–Š‡ϐ‹”‹•ƒŽŽ‘––‡†–‘•—…Šƒ‡„‡”ǡ•—„•‡“—‡––‘•—…ŠƒŽŽ‘–‡–™Š‡–Š‡ϐ‹”
•‡––Ž‡•‹–•ƒ……‘—–•–Š‡™Š‘Ž‡‹…‘‡ˆ‘”–Šƒ–›‡ƒ”™‘—Ž†„‡–Š‡‹…‘‡‘ˆ–Š‡‹†‹˜‹†—ƒŽ‡„‡”ƒ†‘
’ƒ”–‘ˆ–Š‡‹…‘‡™‘—Ž†„‡ƒ††‡†–‘–Š‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›ǤȏCIT v. Ashok Bhai Chiman Bhai (1965) 56,
ITR, 42 (S.C.)ȐǤ
ȋ˜Ȍ Š‡’‡”•‘ƒŽ‡ƒ”‹‰ǡ‹…Ž—†‹‰‹…‘‡ˆ”‘•‡Žˆƒ…“—‹”‡†’”‘’‡”–›‘ˆƒ‡„‡”‘ˆ–Š‡ ǡ‡˜‡–Š‘—‰Š
Š‡Šƒ••‘•ǡ™‘—Ž†‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›Ǥ—…Š‹…‘‡•ŠƒŽŽ„‡ƒ••‡••‡†ƒ•‹…‘‡
‘ˆ–Šƒ–‹†‹˜‹†—ƒŽǤȏKalyanji Vithal Das v. CIT (1937) 5 ITR 90 (PC)ȐǤ
ȋ˜‹Ȍ ›•—’ƒ‹†„›ƒ –‘ƒ‡„‡”‘ˆ–Š‡ˆƒ‹Ž›‘—–‘ˆ‹–•‹…‘‡‹•‘–†‡†—…–‹„Ž‡‹…‘’—–‹‰–Š‡
‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›Ǥ‘™‡˜‡”ǡ•—…Šƒ‘—–™‹ŽŽ‘–„‡‹…Ž—†‡†‹–Š‡‹…‘‡‘ˆ•—…Š‹†‹˜‹†—ƒŽ™Š‡–Š‡”
–Š‡ˆƒ‹Ž›Šƒ†’ƒ‹†–ƒš‘‹–•‹…‘‡‘”‘–ȏ‡…–‹‘ͳͲȋʹȌȐǤ
ȋ˜‹‹Ȍ ˆƒ›”‡—‡”ƒ–‹‘‹•’ƒ‹†„›–Š‡‹†—†‹˜‹†‡†ˆƒ‹Ž›–‘–Š‡ƒ”–ƒ‘”ƒ›‘–Š‡”‡„‡”ˆ‘”•‡”˜‹…‡•
”‡†‡”‡†„›Š‹‹…‘†—…–‹‰ˆƒ‹Ž›ǯ•„—•‹‡••ǡ–Š‡”‡—‡”ƒ–‹‘‹•†‡†—…–‹„Ž‡‹ˆ”‡—‡”ƒ–‹‘‹•ȋƒȌ
’ƒ‹† —†‡” ƒ ˜ƒŽ‹† ƒ† „‘ƒ ϐ‹†‡ ƒ‰”‡‡‡–Ǣ ȋ„Ȍ ‹ –Š‡ ‹–‡”‡•– ‘ˆǡ ƒ† ‡š’‡†‹‡– ˆ‘”ǡ –Š‡ „—•‹‡•• ‘ˆ
ˆƒ‹Ž›Ǣƒ†ȋ…Ȍ‰‡—‹‡ƒ†‘–‡š…‡••‹˜‡ǤJugal Kishore Baldeo Sahai v. CIT [1967] 63 ITR 238 (SC).
ȋ˜‹‹‹Ȍˆ•ƒŽƒ”›‹•’ƒ‹†„›–Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›–‘‹–•ƒ”–ƒˆ‘”Ž‘‘‹‰ƒˆ–‡”‹–•‹–‡”‡•–‹ϐ‹”•‹™Š‹…Š‹–
‹•’ƒ”–‡”–Š”‘—‰Š•ƒ‹†ƒ”–ƒǡ•—…Š•ƒŽƒ”›‹•ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘ǦCIT v. Prakash Chand Agarwal [1982]
11 Taxman 55 (MP).
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 407

ȋ‹šȌ …‘‡ˆ”‘Ǯ•–”‹†Šƒǯ‹•‘–‹…Ž—†‹„Ž‡‹–Š‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›Ǥ”‘’‡”–›†‡”‹˜‡†„›ƒ™‘ƒˆ”‘
Š‡”ˆƒ–Š‡”‘”„”‘–Š‡”‘”Š—•„ƒ†‘”ƒ›‘–Š‡””‡Žƒ–‹˜‡‡‹–Š‡”„‡ˆ‘”‡‘”ƒˆ–‡”Š‡”ƒ””‹ƒ‰‡‹•‘™ƒ•
Ǯ•–”‹†ŠƒǯǤ
ȋšȌ †‡”–Š‡ƒ›ƒ„Šƒ‰ƒ…Š‘‘Ž‘ˆŽƒ™ǡƒ••–ƒ–‡†‹ƒ’”‡…‡†‹‰’ƒ‰‡ǡ‘•‘Šƒ•ƒ›”‹‰Š–‹–Š‡ƒ…‡•–”ƒŽ
’”‘’‡”–›†—”‹‰–Š‡Ž‹ˆ‡–‹‡‘ˆŠ‹•ˆƒ–Š‡”Ǥˆǡ–Š‡”‡ˆ‘”‡ǡ–Š‡ˆƒ–Š‡”†‘‡•‘–Šƒ˜‡ƒ›„”‘–Š‡”ƒ•ƒ…‘’ƒ”…‡‡”ǡ
‹…‘‡ƒ”‹•‹‰ˆ”‘ƒ…‡•–”ƒŽ’”‘’‡”–›‹•–ƒšƒ„Ž‡ƒ•Š‹•‹†‹˜‹†—ƒŽ‹…‘‡Ǥ

ƒ”–‹–‹‘‘ˆƒ‹†—†‹˜‹†‡† ƒ‹Ž›ȏ‡…–‹‘ͳ͹ͳȐ

Ǯƒ”–‹–‹‘ǯ•‹‰‹ϐ‹‡•†‹˜‹•‹‘‘ˆ’”‘’‡”–›Ǥ–Š‡…ƒ•‡•‘ˆ’”‘’‡”–›…ƒ’ƒ„Ž‡‘ˆ’Š›•‹…ƒŽ†‹˜‹•‹‘ǡ•Šƒ”‡‘ˆ‡ƒ…Š‡„‡”
‹• †‡–‡”‹‡† „› ƒ‹‰ ’Š›•‹…ƒŽ †‹˜‹•‹‘ –Š‡”‡‘ˆǤ – —•– „‡ ‘–‡† –Šƒ– ƒ †‹˜‹•‹‘ ‘ˆ ‹…‘‡ ™‹–Š‘—– ’Š›•‹…ƒŽ
†‹˜‹•‹‘‘ˆ’”‘’‡”–›†‘‡•‘–ƒ‘—––‘’ƒ”–‹–‹‘ǤŠ‡”‡ǡŠ‘™‡˜‡”ǡ–Š‡’”‘’‡”–›‹•‘–…ƒ’ƒ„Ž‡‘ˆ’Š›•‹…ƒŽ†‹˜‹•‹‘ǡ
’ƒ”–‹–‹‘‹’Ž‹‡••—…Š†‹˜‹•‹‘ƒ•–Š‡’”‘’‡”–›ƒ›ƒ†‹–Ǥ
Who is entitled to share on partition
Š‘—‰Š‘Ž›…‘’ƒ”…‡‡”•…ƒ†‡ƒ†’ƒ”–‹–‹‘ǡ‘…‡–Š‡’ƒ”–‹–‹‘–ƒ‡•‡ˆˆ‡…–ǡ–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•ƒ”‡‡–‹–Ž‡†
–‘ƒ•Šƒ”‡ǣ
ȋƒȌ ƒŽŽ…‘’ƒ”…‡‡”•Ǣ
ȋ„Ȍ ƒ•‘‹–Š‡™‘„‘ˆŠ‹•‘–Š‡”ƒ––Š‡–‹‡‘ˆ’ƒ”–‹–‹‘Ǣ
ȋ…Ȍ ‘–Š‡”ǡ™Š‘‰‡–•ƒ‡“—ƒŽ•Šƒ”‡‹ˆ–Š‡’ƒ”–‹–‹‘–ƒ‡•’Žƒ…‡ƒ‘‰Š‡”•‘•ƒˆ–‡”–Š‡†‡ƒ–Š‘ˆŠ‡”Š—•„ƒ†Ǣ
ƒ†
ȋ†Ȍ ™‹ˆ‡ǡ™Š‘‰‡–•ƒ•Šƒ”‡‡“—ƒŽ–‘–Šƒ–‘ˆƒ•‘ƒ––Š‡–‹‡‘ˆƒ’ƒ”–‹–‹‘„‡–™‡‡ˆƒ–Š‡”ƒ†•‘•Ǥ

Assessment after partition (Section 171)

‡…–‹‘ͳ͹ͳƒ’’Ž‹‡•–‘ƒ ™Š‹…Š‹•ƒ••‡••‡†ƒ••—…ŠǤŠ‡”‡ˆ‘”‡ǡ‹ˆ‹…ƒ•‡ƒˆƒ‹Ž›‹•‘–ƒ••‡••‡†ƒ•ƒŠ‹†—
—†‹˜‹†‡†ˆƒ‹Ž›–Š‹••‡…–‹‘†‘‡•‘–ƒ’’Ž›ǤŒ‘‹–ˆƒ‹Ž›ǡ‘…‡ƒ••‡••‡†ƒ•ƒ ǡ…‘–‹—‡•–‘„‡ƒ••‡••‡†ƒ•
•—…Š–‹ŽŽ‘‡‘”‘”‡…‘’ƒ”…‡‡”•…Žƒ‹’ƒ”–‹–‹‘Ǥ—…Š…Žƒ‹—•–„‡ƒ†‡„›–Š‡…‘’ƒ”…‡‡”•„‡ˆ‘”‡–Š‡ƒ••‡••‡–
‘ˆ–Š‡‹…‘‡‘ˆ–Š‡ ˆ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”‹•…‘’Ž‡–‡†Ǥ–Š‡”‡…‡‹’–‘ˆ•—…Šƒ…Žƒ‹ǡ–Š‡••‡••‹‰
ˆϐ‹…‡”—•–ƒ‡ƒ‹“—‹”›ƒˆ–‡”‰‹˜‹‰†—‡‘–‹…‡–‘–Š‡‡„‡”•ƒ†”‡…‘”†ƒϐ‹†‹‰™Š‡–Š‡”–Š‡”‡Šƒ•„‡‡
ƒ’ƒ”–‹–‹‘ƒ†ǡ‹ˆ•‘ǡ–Š‡†ƒ–‡‘ˆ–Š‡’ƒ”–‹–‹‘ǤŠ‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›ˆ”‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”–‘–Š‡
†ƒ–‡‘ˆ’ƒ”–‹–‹‘‹•ƒ••‡••‡†ƒ•‹…‘‡‘ˆ–Š‡ ƒ†ˆ”‘–Š‡‡š–†ƒ–‡‘ˆ–Š‡’ƒ”–‹–‹‘–‘–Š‡†ƒ–‡‘ˆ…Ž‘•‡‘ˆ–Š‡
’”‡˜‹‘—• ›‡ƒ”ǡ ƒ• –Š‡ ‹†‹˜‹†—ƒŽ ‹…‘‡ ‘ˆ –Š‡ ”‡…‹’‹‡–Ǧ‡„‡”•Ǥ ˆ –Š‡ ”‡…‹’‹‡– ‡„‡” ˆ‘”• ƒ‘–Š‡”  
ƒŽ‘‰™‹–ŠŠ‹•™‹ˆ‡ƒ†•‘ȋ•Ȍǡ–Š‡‹…‘‡‘ˆ–Š‡’”‘’‡”–›™Š‹…Š™ƒ••—„Œ‡…––‘’ƒ”–‹–‹‘‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡
Šƒ†•‘ˆ–Š‡‡™ǤǤ Ǥ
A partition of the HUF can be both total and partial
Š‡”‡ –Š‡ ‡–‹”‡ Œ‘‹– ˆƒ‹Ž› ’”‘’‡”–› ‹• †‹˜‹†‡† ƒ‘‰ ƒŽŽ …‘’ƒ”…‡‡”• ƒ† –Š‡ ˆƒ‹Ž› …‡ƒ•‡• –‘ ‡š‹•– ƒ• ƒ
—†‹˜‹†‡†ˆƒ‹Ž›ǡ–Š‡’ƒ”–‹–‹‘‹•–‘–ƒŽǤ’ƒ”–‹ƒŽ’ƒ”–‹–‹‘ƒ›„‡ƒ•”‡‰ƒ”†•ǣȋƒȌ–Š‡’‡”•‘•…‘•–‹–—–‹‰–Š‡Œ‘‹–
ˆƒ‹Ž›ǡ‘”ȋ„Ȍ–Š‡’”‘’‡”–‹‡•„‡Ž‘‰‹‰–‘–Š‡Œ‘‹–ˆƒ‹Ž›ǡ‘”ȋ…Ȍ„‘–ŠǤ…ƒ•‡‘ˆ’ƒ”–‹ƒŽ’ƒ”–‹–‹‘ǡ•‘‡…‘’ƒ”…‡‡”•
…‘–‹—‡ƒ•ƒŒ‘‹–ˆƒ‹Ž›‘”•‘‡’”‘’‡”–‹‡•…‘–‹—‡ƒ•ƒŒ‘‹–‡•–ƒ–‡ƒ•ƒ‰ƒ‹•–•‘‡…‘’ƒ”…‡‡”•‘”’”‘’‡”–‹‡•
™Š‹…Š•‡’ƒ”ƒ–‡ˆ”‘ ǤŠ‡†‡˜‹…‡‘ˆ’ƒ”–‹ƒŽ’ƒ”–‹–‹‘Šƒ•„‡‡—•‡†ƒ•ƒ‡†‹—ˆ‘””‡†—…–‹‘‘ˆ’”‘’‡”–ƒš
Ž‹ƒ„‹Ž‹–›Ǥ‘…—”„•—…Šƒ’”ƒ…–‹…‡ǡ–Š‡ ‹ƒ…‡ȋ‘ǤʹȌ…–ǡͳͻͺͲ‹•‡”–‡†—„Ǧ•‡…–‹‘ͻ‹‡…–‹‘ͳ͹ͳ™Š‹…ŠŽƒ›•
†‘™ –Šƒ– ’ƒ”–‹ƒŽ ’ƒ”–‹–‹‘• ‘ˆ  • ƒ••‡••‡† ƒ• •—…Š ȋ‹‘ ‘ˆ †‹ƒ ˜•  ƒŽŽ‹ƒ’’ƒ ͳͻͻͻ   ʹ͸ͺͻȌǡ
‡ˆˆ‡…–‡†ƒˆ–‡”͵ͳ•–‡…‡„‡”ǡͳͻ͹ͺ™‹ŽŽ‘–„‡”‡…‘‰‹•‡†ˆ‘”–ƒš’—”’‘•‡•Ǥ
Š‡’”‘˜‹•‹‘•ƒ†‡„›—„Ǧ•‡…–‹‘ȋͻȌ‹‡…–‹‘ͳ͹ͳƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ
ȋ‹Ȍ ƒ…ƒ•‡™Š‡”‡ƒ’ƒ”–‹ƒŽ’ƒ”–‹–‹‘‘ˆƒ Šƒ•–ƒ‡’Žƒ…‡ƒˆ–‡”͵ͳǤͳʹǤͳͻ͹ͺǡ‘…Žƒ‹‘ˆ•—…Š’ƒ”–‹–‹‘™‹ŽŽ
„‡‡“—‹”‡†‹–‘ƒ†–Š‡••‡••‹‰ˆϐ‹…‡”™‹ŽŽ‘–”‡…‘”†ƒϐ‹†‹‰ƒ•–‘™Š‡–Š‡”–Š‡”‡Šƒ•„‡‡ƒ’ƒ”–‹–‹‘
‘ˆ–Š‡ˆƒ‹Ž›’”‘’‡”–›Ǥ —”–Š‡”ǡƒ›ϐ‹†‹‰”‡‰ƒ”†‹‰’ƒ”–‹ƒŽ’ƒ”–‹–‹‘”‡…‘”†‡†—†‡”‡…–‹‘ͳ͹ͳȋ͵Ȍ™‹ŽŽ
„‡—ŽŽƒ†˜‘‹†ƒ†‘ˆ‘Ž‡‰ƒŽ‡ˆˆ‡…–Ǥ
408 Lesson 7 Ȉ EP-TL

ȋ‹Ȍ —…Šˆƒ‹Ž›™‹ŽŽ…‘–‹—‡–‘„‡ƒ••‡••‡†ƒ•‹ˆ‘•—…Š’ƒ”–‹ƒŽ’ƒ”–‹–‹‘Šƒ•–ƒ‡’Žƒ…‡ǡ‹Ǥ‡Ǥǡ–Š‡’”‘’‡”–›‘”
•‘—”…‡‘ˆ‹…‘‡™‹ŽŽ„‡†‡‡‡†–‘…‘–‹—‡–‘„‡Ž‘‰–‘–Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›ƒ†‘‡„‡”™‹ŽŽ
„‡†‡‡‡†–‘Šƒ˜‡•‡’ƒ”ƒ–‡†ˆ”‘–Š‡ˆƒ‹Ž›Ǥ
ȋ‹Ȍ ƒ…Š‡„‡”‘”‰”‘—’‘ˆ‡„‡”•‘ˆ•—…Šˆƒ‹Ž›™‹ŽŽ„‡Œ‘‹–Ž›ƒ†•‡˜‡”ƒŽŽ›Ž‹ƒ„Ž‡ˆ‘”ƒ›–ƒšǡ‹–‡”‡•–ǡ
’‡ƒŽ–›ǡϐ‹‡‘”‘–Š‡”•—’ƒ›ƒ„Ž‡—†‡”–Š‡…–„›–Š‡ˆƒ‹Ž›ǡ™Š‡–Š‡”„‡ˆ‘”‡‘”ƒˆ–‡”•—…Š’ƒ”–‹–‹‘ǤŠ‡
•‡˜‡”ƒŽŽ‹ƒ„‹Ž‹–›‘ˆƒ›‡„‡”‘”‰”‘—’‘ˆ‡„‡”•‘ˆ•—…Šˆƒ‹Ž›™‹ŽŽ„‡…‘’—–‡†ƒ……‘”†‹‰–‘–Š‡
’‘”–‹‘‘ˆ–Š‡Œ‘‹–ˆƒ‹Ž›’”‘’‡”–›ƒŽŽ‘––‡†–‘Š‹‘•—…Š’ƒ”–‹ƒŽ’ƒ”–‹–‹‘ǤŠ‹•ƒ‡†‡–Šƒ•…‘‡
‹–‘ˆ‘”…‡™‹–Š‡ˆˆ‡…–ˆ”‘’”‹ŽͳǡͳͻͺͲƒ†Šƒ•ǡƒ……‘”†‹‰Ž›ǡ„‡‡ƒ’’Ž‹…ƒ„Ž‡™‹–Š‡ˆˆ‡…–ˆ”‘ƒ••‡••‡–
›‡ƒ”ͳͻͺͲǦͺͳƒ†‘™ƒ”†•Ǥ

Illustration 5ǣ
ƒƒŠƒ”Ƭ‘• ǡ”—‹‰ƒ‰Š—˜‡‡”‡’ƒ”–‡–ƒŽ–‘”‡•…‘•‹•–•‘ˆƒ”–ƒǡŠ‹•™‹ˆ‡ǡ–™‘•‘•ƒ†
†ƒ—‰Š–‡”Ǥ‘–Š–Š‡•‘•™Š‘ƒ”‡Šƒ˜‹‰’”‘ˆ‡••‹‘ƒŽȀ–‡…Š‹…ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘•ƒ•ƒŠƒ”–‡”‡†……‘—–ƒ–ƒ†ƒ•
ƒ —–‘‘„‹Ž‡ ‰‹‡‡” •–ƒ”–‡† ‹ ’ƒ”–‡”•Š‹’ǡ ƒ ‰ƒ”ƒ‰‡ ˆ‘” –Š‡ ”‡’ƒ‹”‹‰ ‘ˆ ‘–‘” …ƒ”•ǡ ™‹–Š ƒ …Ž‡ƒ”
—†‡”•–ƒ†‹‰ –Šƒ– –Š‡ –‡…Š‹…ƒŽ •‹†‡ ‘ˆ –Š‡ „—•‹‡•• „‡ Ž‘‘‡† ƒˆ–‡” „› –Š‡ ‰‹‡‡” ™Š‹Ž‡ –Š‡ ‰‡‡”ƒŽ
ƒ†‹‹•–”ƒ–‹‘ƒ†ϐ‹ƒ…‡’ƒ”–„‡–ƒ‡…ƒ”‡„›–Š‡Šƒ”–‡”‡†……‘—–ƒ–ǤŠ‡›Šƒ†–ƒ‡ƒ‹–‡”‡•–Ǧˆ”‡‡
Ž‘ƒ‘ˆ•ǤͷǡͲͲǡͲͲͲˆ”‘–Š‡ ˆ‘”•–ƒ”–‹‰–Š‡˜‡–—”‡ǤŠ‡„—•‹‡••‘ˆ‰ƒ”ƒ‰‡”‡•—Ž–‡†‹ƒ‡–’”‘ϐ‹–‘ˆ•Ǥ
ͳͷǡͲͲǡͲͲͲˆ‘”–Š‡›‡ƒ”‡†‡†͵ͳǤͲ͵ǤʹͲʹʹǤŠ‡••‡••‹‰ˆϐ‹…‡”’”‘’‘•‡•–‘ƒ••‡••–Š‡‹…‘‡ˆ”‘–Š‡„—•‹‡••
‘ˆ‘–‘”‰ƒ”ƒ‰‡‹–Š‡Šƒ†•‘ˆ Ǥšƒ‹‡–Š‡˜ƒŽ‹†‹–›‘ˆ–Š‡’”‘’‘•‹–‹‘‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”‹–Š‡Ž‹‰Š–
‘ˆƒ†‡…‹†‡†…ƒ•‡Žƒ™Ǥ
Solution:
Š‡ˆƒ…–•‘ˆ–Š‡…ƒ•‡ƒ”‡•‹‹Žƒ”–‘–Šƒ–‘ˆ–Š‡…ƒ•‡‘ˆCIT v. Charan Dass Khanna & Sons (1980) 123 ITR 194,
™Š‡”‡–Š‡‡ŽŠ‹‹‰Š‘—”–‘„•‡”˜‡†–Šƒ–‹ˆ–Š‡‹˜‡•–‡–ƒ†‡„›–Š‡ ‹–Š‡„—•‹‡•••–ƒ”–‡†„›–Š‡
…‘’ƒ”…‡‡”•’Žƒ›•ƒ‹‘””‘Ž‡ƒ†‹–‹•’”‹ƒ”‹Ž›–Š‡’‡”•‘ƒŽ‡ˆˆ‘”–•ǡ•’‡…‹ƒŽ‹œ‡†•‹ŽŽƒ†‡–‡”’”‹•‡‘ˆ–Š‡
‹†‹˜‹†—ƒŽ…‘’ƒ”…‡‡”•™Š‹…Š”‡•—Ž–‡†‹•‡––‹‰—’‘ˆƒ‡™„—•‹‡••ƒ†‡ƒ”‹‰‘ˆ‰‘‘†•’”‘ϐ‹–•ǡ–Š‡‹–ƒ›
‘–‡••‡–‹ƒŽŽ›„‡•ƒ‹†–Šƒ––Š‡‹…‘‡„‡Ž‘‰•–‘–Š‡ Ǥ
Š‡—’”‡‡‘—”–Šƒ•ƒŽ•‘•—’’‘”–‡†–Š‹•˜‹‡™‹–Š‡…ƒ•‡‘ˆK.S. Subbiah Pillai v. CIT (1999) 237 ITR 11 ƒ†
Š‡Ž† –Šƒ– ™Š‡”‡ –Š‡ ”‡—‡”ƒ–‹‘ ƒ† …‘‹••‹‘ ‡ƒ”‡† „› –Š‡ ƒ”–ƒ ™‡”‡ ‘ ƒ……‘—– ‘ˆ –Š‡ ’‡”•‘ƒŽ
“—ƒŽ‹ϐ‹…ƒ–‹‘•ƒ†‡š‡”–‹‘•ƒ†‘–‘ƒ……‘—–‘ˆ–Š‡‹˜‡•–‡–‘ˆ–Š‡ˆƒ‹Ž›ˆ—†•ǡ•—…Š‹…‘‡…ƒ‘–„‡
–”‡ƒ–‡†ƒ•‹…‘‡‘ˆ–Š‡ Ǥ
Š—•ǡ‹–Š‡‰‹˜‡…ƒ•‡ǡ’”‘ϐ‹–•™‡”‡‡ƒ”‡†’”‹ƒ”‹Ž›„‡…ƒ—•‡‘ˆ–Š‡•’‡…‹ƒŽ‹œ‡†•‹ŽŽ•ƒ…“—‹”‡†„›„‘–Š–Š‡
’ƒ”–‡”•‹–Š‡‹””‡•’‡…–‹˜‡ϐ‹‡Ž†•ƒ†—•‡†‹–Š‡„—•‹‡••‘ˆ‘–‘”‰ƒ”ƒ‰‡ǤŠ‡‹‹–‹ƒŽ…ƒ’‹–ƒŽ–ƒ‡ˆ”‘–Š‡
 ƒ•‹–‡”‡•–ˆ”‡‡Ž‘ƒǡ‘ˆ…‘—”•‡ǡŠƒ•‹–•”‘Ž‡„—–‹–‹•‡˜‡”–Š‡Ž‡••ƒ‹‘”‘‡ǤŠ‡”‡ˆ‘”‡ǡ–Š‡‹…‘‡ˆ”‘
–Š‡„—•‹‡•••‡–—’„›–Š‡„”‘–Š‡”•‹•ƒ••‡••ƒ„Ž‡‹–Š‡‹”‹†‹˜‹†—ƒŽŠƒ†•ƒ†‘–ƒ•–Š‡‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›Ǥ
—”–Š‡”ǡ–Š‡’”‘’‘•‹–‹‘‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”–‘–ƒš–Š‡’”‘ϐ‹–•‘ˆ–Š‡„—•‹‡••‘ˆ‘–‘”‰ƒ”ƒ‰‡‡ƒ”‡†„›–Š‡
–™‘•‘•‹–Š‡Šƒ†•‘ˆ–Š‡ ‹•‘–˜ƒŽ‹†Ǥ

Illustration 6:
ƒȋͷͻ›‡ƒ”•Ȍƒ†Š‹•–™‘„”‘–Š‡”•ȋƒ‡•Šȋͷ͹›‡ƒ”•Ȍƒ†‘‡•ŠȋͷͲ›‡ƒ”•Ȍƒ”‡‡‰ƒ‰‡†‹ˆƒ‹Ž›„—•‹‡••
‘ˆ…—Ž–‹˜ƒ–‹‘‘ˆ™Š‡ƒ–Ǥƒ•–›‡ƒ”–Š‡›Šƒ†Ž‘••‡•–‘–Š‡‡š–‡–‘ˆ•ǤͳʹǡͲͲͲ„—––Š‹•›‡ƒ”ǡ†—‡–‘‰‘‘†•‡ƒ•‘–Š‡
—•‹‡••‡ƒ”‡†ƒ”‘ϐ‹–‘ˆ•ǤʹǡʹͲǡͲͲͲǤ
Š‡ˆƒ‹Ž›‘™•ƒŠ‘—•‡’”‘’‡”–›ǡ–Š‡—‹…‹’ƒŽ˜ƒŽ—ƒ–‹‘‘ˆ™Š‹…Š‹••ǤʹͺͲͲͲͲƒ†–Š‡ƒ”‡–”‡–‘ˆ•‹‹Žƒ”
’”‘’‡”–›‹••ǤʹǡͺͷǡͲͲͲǤŠ‡•–ƒ†ƒ”†”‡–ƒ•’‡”‡–‘–”‘Ž…–‹••Ǥ͵ǡͷͲǡͲͲͲǤŠ‡ˆƒ‹Ž›’ƒ›••ǤͶͺǡͲͲͲ
ˆ‘”—‹…‹’ƒŽ–ƒš‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‘—–‘ˆ™Š‹…Š•ǤʹͲǡͲͲͲ’‡”–ƒ‹•–‘‡ƒ”Ž‹‡”›‡ƒ”™Š‹…Š…‘—Ž†‘–„‡
’ƒ‹††—‡–‘„—•‹‡••Ž‘••Ǥ–‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡†ˆ‘””‡’ƒ›‹‰‘”‹‰‹ƒŽŽ‘ƒˆ‘”…‘•–”—…–‹‘‘ˆŠ‘—•‡•Ǥ
͹ͷǡͲͲͲǤ —”–Š‡”ǡ–Š‡”‡–ƒŽ‹…‘‡‘ˆ–Š‡’”‘’‡”–›‹••Ǥ͵ǡͳͲǡͲͲͲǤ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 409

Dividend received from Indian Company X Ltd. Rs. 12,000.

Interest received on listed debentures Rs.8,10,000 (net).
Compute the total income and Tax liability of the family X (HUF) for the Assessment year 2022-23.
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷǤ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷǤ
Solution:
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Computation of Total Income of X (HUF) for the Assessment Year 2022-23

Income from House Property (Rs.)

”‘••ƒ—ƒŽƒŽ—‡ ͵ǡͳͲǡͲͲͲ
Lessǣ—‹…‹’ƒŽƒš‡• ȋͶͺǡͲͲͲȌ
‡–ƒ—ƒŽƒŽ—‡ ʹǡ͸ʹǡͲͲͲ
Lessǣ–ƒ†ƒ”†‡†—…–‹‘̷͵ͲΨ‘ˆʹǡ͸ʹǡͲͲͲ ȋ͹ͺǡ͸ͲͲȌ
Lessǣ–‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡† ȋ͹ͷǡͲͲͲȌ
…‘‡ˆ”‘‘—•‡’”‘’‡”–› 1,08,400
Income from Business/Profession
‰”‹…—Ž–—”ƒŽ‹…‘‡ȋš‡’–Ȍ 
Income from other sources
‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ ͳʹǡͲͲͲ
–‡”‡•–‘Ž‹•–‡††‡„‡–—”‡• ͻǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ 10,20,400
‡••ǣ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ 
Total Income 10,20,400
Note: Š‡•Šƒ”‡‘ˆƒ”–ƒƒ†‘–Š‡”…‘’ƒ”…‡‡”•‹–Š‡’”‘ϐ‹–•‘ˆ ™‹ŽŽ„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋʹȌ
Computation of tax on Total Income of X (HUF) for the Assessment Year 2022-23

Particulars Amount
ȋƒȌ ‰”‹…—Ž–—”ƒŽ‹…‘‡ȋʹǡʹͲǡͲͲͲǦͳʹǡͲͲͲȌ ʹǡͲͺǡͲͲͲ
ȋ„Ȍ ‘Ǧƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ ͳͲǡʹͲǡͶͲͲ
ȋ…Ȍ ‘–ƒŽ‘ˆȋƒȌƒ†ȋ„Ȍ ͳʹǡʹͺǡͶͲͲ
(d) Tax payable on (c) 1,81,020
ƒš‘ϐ‹”•–ʹǡͷͲǡͲͲͲ
ƒš‘‡š–ʹͷͲǡͲͲͲ̷ͷΨα•ǤͳʹǡͷͲͲ
ƒš‘‡š–ͷͲͲǡͲͲͲ̷ʹͲΨα•ǤͳͲͲǡͲͲͲ
ƒš‘”‡ƒ‹‹‰‹…‘‡•ǤʹǡʹͺǡͶͲͲ̷͵ͲΨα͸ͺǡͷʹͲ
ȋ‡Ȍ ‘–ƒŽ‘ˆƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ†„ƒ•‹…‡š‡’–‹‘Ž‹‹– ͶǡͷͺǡͲͲͲ
ȋˆȌ ƒš’ƒ›ƒ„Ž‡‘ȋ‡Ȍȋ•’‡”•Žƒ„”ƒ–‡•Ȍ ͳͲǡͶͲͲ
ȋ‰Ȍ ‡––ƒš’ƒ›ƒ„Ž‡αȋ†ȌǦȋˆȌ ͳǡ͹Ͳǡ͸ʹͲ
ȋŠȌ ††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘…‡••‘ˆͶΨ‘•Ǥͳ͹Ͳ͸ʹͲ ͸ǡͺʹͶ
ȋ‹Ȍ ‘–ƒŽ–ƒšȋ”‘—†‘ˆˆȌ ͳǡ͹͹ǡͶͶͲ
410 Lesson 7 Ȉ EP-TL

’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Computation of Total Income of X (HUF) for the Assessment Year 2022-23

Income from House Property (Rs.)

”‘••ƒ—ƒŽƒŽ—‡ ͵ǡͳͲǡͲͲͲ
‡••ǣ—‹…‹’ƒŽƒš‡• ͶͺǡͲͲͲ
‡–ƒ—ƒŽƒŽ—‡ ʹǡ͸ʹǡͲͲͲ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘̷͵ͲΨ‘ˆʹǡ͸ʹǡͲͲͲ ͹ͺǡ͸ͲͲ
‡••ǣ–‡”‡•–‘…ƒ’‹–ƒŽ„‘””‘™‡† ͹ͷǡͲͲͲ
…‘‡ˆ”‘‘—•‡’”‘’‡”–› ͳǡͲͺǡͶͲͲ
…‘‡ˆ”‘—•‹‡••Ȁ”‘ˆ‡••‹‘ (Rs.)
‰”‹…—Ž–—”ƒŽ‹…‘‡ȋš‡’–Ȍ 
Income from other sources
‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ ͳʹǡͲͲͲ
–‡”‡•–‘Ž‹•–‡††‡„‡–—”‡• ͻǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳͲǡʹͲǡͶͲͲ
‡••ǣ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ 
Total Income 10,20,400
Note ǣŠ‡•Šƒ”‡‘ˆƒ”–ƒƒ†‘–Š‡”…‘’ƒ”…‡‡”•‹–Š‡’”‘ϐ‹–•‘ˆ ™‹ŽŽ„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋʹȌǤ
Computation of Tax on Total Income of X (HUF) for the Assessment Year 2022-23

Particulars Amount
ȋƒȌ ‰”‹…—Ž–—”ƒŽ‹…‘‡ȋʹǡʹͲǡͲͲͲǦͳʹǡͲͲͲȌ ʹǡͲͺǡͲͲͲ
ȋ„Ȍ ‘Ǧƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ ͳͲǡʹͲǡͶͲͲ
ȋ…Ȍ ‘–ƒŽ‘ˆȋƒȌƒ†ȋ„Ȍ ͳʹǡʹͺǡͶͲͲ
ȋ†Ȍ ƒš’ƒ›ƒ„Ž‡‘ȋ…Ȍ ͳǡʹͲǡ͸ͲͲ
ƒš‘ϐ‹”•–ʹǡͷͲǡͲͲͲ
ƒš‘‡š–ʹǡͷͲǡͲͲͲ̷ͷΨα•ǤͳʹǡͷͲͲ
ƒš‘‡š–ʹǡͷͲǡͲͲͲ̷ͳͲΨα•ǤʹͷǡͲͲͲ
ƒš‘‡š–ʹǡͷͲǡͲͲͲ̷ͳͷΨα•Ǥ͵͹ǡͷͲͲ
ƒš‘‡š–ʹǡʹͺǡͲͲͲ̷ʹͲΨα•ǤͶͷǡ͸ͲͲ
ȋ‡Ȍ ‘–ƒŽ‘ˆƒ‰”‹…—Ž–—”ƒŽ‹…‘‡ƒ†„ƒ•‹…‡š‡’–‹‘Ž‹‹– ͶǡͷͺǡͲͲͲ
ȋˆȌ ƒš’ƒ›ƒ„Ž‡‘ȋ‡Ȍȋ•’‡”•Žƒ„Ȍ ͳͲǡͶͲͲ
ȋ‰Ȍ ‡––ƒš’ƒ›ƒ„Ž‡αȋ†ȌǦȋˆȌ ͳǡͳͲǡʹͲͲ
ȋŠȌ ††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘…‡••‘ˆͶΨ‘•ǤͳǡͳͲǡʹͲͲ ͶǡͶͲͺ
ȋ‹Ȍ ‘–ƒŽ–ƒšȋ”‘—†‘ˆˆȌ ͳǡͳͶǡ͸ͳͲ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 411

Illustration 7:
ƒǡ͸͸›‡ƒ”•‹•–Š‡ƒ”–ƒ‘ˆƒ ™‹–ŠŠ‹•–™‘•‘•ƒ‡•Šȋ͵ͻ›‡ƒ”•Ȍƒ†‘‡•Šȋʹͷ›‡ƒ”•ȌǤŠ‡ˆƒ‹Ž›
‘™•ƒŠ‘—•‡’”‘’‡”–›ǡ–Š‡”‡–ƒŽ‹…‘‡‘ˆ–Š‡•ƒ‡‹••Ǥ͵ǡͳͲǡͲͲͲǤ ƒ‹Ž›„—•‹‡••’”‘ϐ‹–••ǤʹǡͺͲǡͲͲͲǤ‘‰Ǧ
–‡”…ƒ’‹–ƒŽ‰ƒ‹••ǤʹͷǡͲͲͲƒ†•Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹•ˆ‘”–Š‡›‡ƒ”•ǤͳͳǡͲͲͲȋƒ’’Ž‹…ƒ„Ž‡ȌǤ‹˜‹†‡†
”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ•ǤͳʹǡͲͲͲǤ–‡”‡•–”‡…‡‹˜‡†‘Ž‹•–‡††‡„‡–—”‡••ǤͺǡͲͲͲȋ‰”‘••Ȍƒ
‹˜‡•–‡†‹ •ǤͳǡͷͲǡͲͲͲ‘—–‘ˆˆƒ‹Ž›ˆ—†•ƒ†”‡…‡‹˜‡†•Šƒ”‡‘ˆ’”‘ϐ‹–•ˆ”‘ƒϐ‹”‹™Š‹…ŠŠ‡”‡’”‡•‡–‡†
 „‡‹‰ƒ”–ƒǤƒ‰‹ˆ–••ǤͳǡͲͲǡͲͲͲ–‘ˆƒ‹Ž›ǤƒŽƒ”›‹…‘‡‘ˆƒ‡•Š•Ǥ͸ǡͲͲǡͲͲͲ–‡”‡•–‘
‘˜‡”‡–
‡…—”‹–‹‡••ǤͳͲǡͲͲͲȋ‰”‘••Ȍ‘—–‘ˆ‘™ˆ—†•‘ˆƒǤ
‘’—–‡ –Š‡ –‘–ƒŽ ‹…‘‡ ƒ† ƒš Ž‹ƒ„‹Ž‹–› ‘ˆ –Š‡ ˆƒ‹Ž›  ȋ Ȍ ƒ† ƒǡ ƒ‡•Š ƒ† ‘‡•Š ˆ‘” –Š‡
••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ••—‡ƒ••‡•‡‡•Šƒ˜‡‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ
Solution:
Computation of Total Income of X (HUF) for the Assessment Year 2022-23

Income from house property Amount (Rs.)

‡– ͵ǡͳͲǡͲͲͲ
‡••ǣ–ƒ†ƒ”†‡†—…–‹‘̷͵ͲΨ ͻ͵ǡͲͲͲ
…‘‡ˆ”‘‘—•‡’”‘’‡”–› ʹǡͳ͹ǡͲͲͲ
Income from Business/Profession
—•‹‡••”‘ϐ‹–• ʹǡͺͲǡͲͲͲ
 ‹”ȋš‡’–Ȍ 
…‘‡—†‡”–Š‡Š‡ƒ†ƒ’‹–ƒŽ
ƒ‹•
‘‰Ǧ–‡”ƒ’‹–ƒŽ
ƒ‹ ʹͷǡͲͲͲ
Š‘”––‡”ƒ’‹–ƒŽ
ƒ‹ ͳͳǡͲͲͲ
Income from other sources
‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‹ƒ‘’ƒ›–†Ǥ ͳʹǡͲͲͲ
–‡”‡•–”‡…‡‹˜‡†‘Ž‹•–‡††‡„‡–—”‡• ͺǡͲͲͲ

‹ˆ–ȋš‡’–Ȍ 

”‘••‘–ƒŽ…‘‡ 5,53,000
Lessǣ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ–‘ͺͲ
†‡”•‡…–‹‘ͺͲȋƒš‹—Ȍ ͳǡͷͲǡͲͲͲ
Total Income 4,03,000
Note ǣŠ‡•Šƒ”‡‘ˆƒ”–ƒƒ†‘–Š‡”…‘’ƒ”…‡‡”•‹–Š‡’”‘ϐ‹–•‘ˆ ™‹ŽŽ„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋʹȌ
Computation of tax on Total Income of HUF for the assessment year 2022-23

ƒš‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋʹͲΨ‘ˆ•ǤʹͷǡͲͲͲȌ ͷǡͲͲͲ
ƒš‘•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋͳͷΨ‘ˆ•ǤͳͳǡͲͲͲȌ ͳǡ͸ͷͲ
ƒŽƒ…‡‘ˆ‘–ƒŽ…‘‡•Ǥ͵ǡ͸͹ǡͲͲͲ ͷǡͺͷͲ
‘–ƒŽ–ƒš ͳʹǡͷͲͲ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘…‡••ƒ–ͶΨ ͷͲͲ
Total liability (round off) 13,000

Note ǣŠ‡•Šƒ”‡‘ˆƒ”–ƒƒ†‘–Š‡”…‘’ƒ”…‡‡”•‹–Š‡’”‘ϐ‹–•‘ˆ ™‹ŽŽ„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋʹȌ

 412 Lesson 7 Ȉ EP-TL

Computation of taxable income of Ram, Ramesh and Somesh for the assessment year 2022-23

Particulars Ram Ramesh Somesh

ƒŽƒ”›…‘‡ ͸ǡͲͲǡͲͲͲ
—•‹‡••…‘‡ǣ
”‘ϐ‹–•Šƒ”‡‹ š‡’– š‡’– š‡’–
…‘‡ˆ”‘‘–Š‡”•‘—”…‡•
–‡”‡•–‘
‘˜‡”‡–‡…—”‹–‹‡• ͳͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ 10,000 6,00,000
Deductions u/s 80C to 80U
Taxable Income 10,000 6,00,000
Tax liability NIL 33,800 NIL

TAXATION OF FIRMS
†‡” ‡…–‹‘ ʹȋʹ͵Ȍ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–ǡ –Š‡ –‡”• Dzϐ‹”dzǡ Dz’ƒ”–‡”dzǡ ƒ† Dz’ƒ”–‡”•Š‹’dz Šƒ˜‡ –Š‡ ‡ƒ‹‰•
”‡•’‡…–‹˜‡Ž›ƒ••‹‰‡†–‘–Š‡‹–Š‡†‹ƒƒ”–‡”•Š‹’…–ǡͳͻ͵ʹƒ†‹‹–‡†‹ƒ„‹Ž‹–›ƒ”–‡”•Š‹’…–ǡʹͲͲͺǤ
Š‡‡š’”‡••‹‘Dz’ƒ”–‡”dzƒŽ•‘‹…Ž—†‡•ƒ‹‘”™Š‘Šƒ•„‡‡ƒ†‹––‡†–‘–Š‡„‡‡ϐ‹–•‘ˆ’ƒ”–‡”•Š‹’ƒ†ƒ’ƒ”–‡”
‘ˆƒ‹‹–‡†‹ƒ„‹Ž‹–›ƒ”–‡”•Š‹’…–ǡʹͲͲͺǤ‘™‡˜‡”ƒ‹‘”…ƒ‘–˜ƒŽ‹†Ž›‡–‡”‹–‘ƒ›’ƒ”–‡”•Š‹’ƒ•ƒǮˆ—ŽŽ
’ƒ”–‡”ǯ™‹–Š‘–Š‡”’‡”•‘•„—–Š‡…ƒ„‡ƒ†‹––‡†–‘–Š‡„‡‡ϐ‹–•‘ˆ’ƒ”–‡”•Š‹’‘Ž›Ǥ
Œ‘‹–‹†—ˆƒ‹Ž›ƒ••—…Š…ƒ‘–„‡ƒ’ƒ”–‡”‹ƒϐ‹”Ǥ‘™‡˜‡”ǡ–Š”‘—‰Š‹–•ƒ”–ƒ‹–ƒ›‡–‡”‹–‘ƒ˜ƒŽ‹†
’ƒ”–‡”•Š‹’™‹–Šƒ–Š‹”†’‡”•‘‘”™‹–Šƒ‡„‡”‘ˆ–Š‡—†‹˜‹†‡†ˆƒ‹Ž›‹Š‹•‹†‹˜‹†—ƒŽ…ƒ’ƒ…‹–›Ǥ•—…Šƒ…ƒ•‡ǡ
–Š‡ƒ”–ƒ‘……—’‹‡•ƒ†—ƒŽ’‘•‹–‹‘Ǥ–Š‡’ƒ”–‡”•Š‹’Š‡ˆ—…–‹‘•‹Š‹•‹†‹˜‹†—ƒŽ…ƒ’ƒ…‹–›Ǣ‘–Š‡”‡Žƒ–‹‘•–‘
‘–Š‡”‡„‡”•‘ˆ–Š‡‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ‹Š‹•”‡’”‡•‡–ƒ–‹˜‡…ƒ’ƒ…‹–›Ǥ
‹…‘”’‘”ƒ–‡†…‘’ƒ›„‡‹‰ƒŽ‡‰ƒŽ’‡”•‘ƒ›ˆ‘”ƒ’ƒ”–‡”•Š‹’™‹–Šƒ‹†‹˜‹†—ƒŽ‘”™‹–Šƒ‘–Š‡”…‘’ƒ›Ǥ
…‘•‹†‡”‹‰–Š‡ƒš‹——„‡”‘ˆ’ƒ”–‡”•…‘’”‹•‹‰ƒϐ‹”ǡ–Š‡…‘’ƒ›™‹ŽŽ„‡…‘•‹†‡”‡†ƒ•‘‡’‡”•‘
‘Ž›Ǥ
 ’ƒ”–‡”•Š‹’ ϐ‹” ƒ• •—…Š ‹• ‘– ‡–‹–Ž‡† –‘ ‡–‡” ‹–‘ ƒ ’ƒ”–‡”•Š‹’ ™‹–Š ƒ‘–Š‡” ϐ‹”ǡ ǤǤ Ǥǡ ‹†‹˜‹†—ƒŽǡ ‘” ƒ
…‘’ƒ›Ǥ‘™‡˜‡”ǡ‹–•’ƒ”–‡”•‹–Š‡‹”‹†‹˜‹†—ƒŽ…ƒ’ƒ…‹–›…ƒ‡–‡”‹–‘ƒ‘–Š‡”’ƒ”–‡”•Š‹’Ǥ
••‡••‡–ƒ•ƒ ‹”ȏ‡…–‹‘ͳͺͶȐ
• ’‡” –Š‡ •…Š‡‡ǡ ƒ ’ƒ”–‡”•Š‹’ ϐ‹” ‹ –Š‡ ϐ‹”•– ƒ••‡••‡– ›‡ƒ” •ŠƒŽŽ „‡ ƒ••‡••‡† ƒ• ƒ ϐ‹” ‹ˆ –Š‡ ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ͳǤ Š‡’ƒ”–‡”•Š‹’‹•‡˜‹†‡…‡†„›ƒ‹•–”—‡–ǡ‹Ǥ‡Ǥǡ’ƒ”–‡”•Š‹’†‡‡†™Š‹…Š‹•–‘„‡‹™”‹–‹‰…‘–ƒ‹‹‰
‡…‡••ƒ”›…Žƒ—•‡•Ǥ
ʹǤ Š‡‹†‹˜‹†—ƒŽ•Šƒ”‡•‘ˆ–Š‡’ƒ”–‡”•ƒ••’‡…‹ϐ‹‡†‹–Šƒ–‹•–”—‡–ȋ‹…Ž—†‹‰Š‘™–Š‡Ž‘••™‹ŽŽ„‡„‘”‡
„›ƒŒ‘”’ƒ”–‡”•‹…ƒ•‡‘ˆƒ‹‘”ƒ†‹––‡†ˆ‘”„‡‡ϐ‹–•‘Ž›ȌǤ
͵Ǥ …‘’›‘ˆ–Š‡’ƒ”–‡”•Š‹’†‡‡†…‡”–‹ϐ‹‡†„›ƒŽŽ–Š‡’ƒ”–‡”•‘”–Š‡‹”†—Ž›ƒ—–Š‘”‹œ‡†ƒ‰‡–•ǡ‹™”‹–‹‰
ȋ‘–Š‡”–Šƒ–Š‡‹‘”•Ȍ‹••—„‹––‡†ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡‹”‡•’‡…–‘ˆ™Š‹…Šƒ••‡••‡–ƒ•ƒ
ϐ‹”‹•ϐ‹”•–•‘—‰Š–Ǥ

Š‡”‡–Š‡”‡–—”‹•ƒ†‡ƒˆ–‡”–Š‡†‹••‘Ž—–‹‘‘ˆ–Š‡ϐ‹”ǡ–Š‡…‘’›‘ˆ–Š‡’ƒ”–‡”•Š‹’†‡‡†•Š‘—Ž†„‡…‡”–‹ϐ‹‡†‹
™”‹–‹‰„›ƒŽŽ’‡”•‘•ȋ‡š…Ž—†‹‰‹‘”•Ȍ™Š‘™‡”‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡‹–•†‹••‘Ž—–‹‘ƒ†„›
–Š‡Ž‡‰ƒŽ”‡’”‡•‡–ƒ–‹˜‡‘ˆƒ›†‡…‡ƒ•‡†’ƒ”–‡”Ǥ
Š‡ ƒ ϐ‹” ‹• ƒ••‡••‡† ƒ• •—…Š ˆ‘” ƒ› ƒ••‡••‡– ›‡ƒ”ǡ ‹– •ŠƒŽŽ „‡ ƒ••‡••‡† ‹ –Š‡ •ƒ‡ …ƒ’ƒ…‹–› ˆ‘” ‡˜‡”›
•—„•‡“—‡–›‡ƒ”‹ˆ–Š‡”‡‹•‘…Šƒ‰‡‹–Š‡…‘•–‹–—–‹‘‘ˆ–Š‡ϐ‹”‘”‹–Š‡•Šƒ”‡•‘ˆ’ƒ”–‡”•ƒ•‡˜‹†‡…‡†„›–Š‡
’ƒ”–‡”•Š‹’†‡‡†‘–Š‡„ƒ•‹•‘ˆ™Š‹…Šƒ••‡••‡–ƒ•ƒϐ‹”™ƒ•ϐ‹”•–•‘—‰Š–Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 413

Š‡”‡ƒ›•—…Š…Šƒ‰‡Šƒ•–ƒ‡’Žƒ…‡‹–Š‡’”‡˜‹‘—•›‡ƒ”ǡ–Š‡ϐ‹”•ŠƒŽŽˆ—”‹•Šƒ…‡”–‹ϐ‹‡†…‘’›‘ˆ–Š‡”‡˜‹•‡†
‹•–”—‡–‘ˆ’ƒ”–‡”•Š‹’ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘•—…Š’”‡˜‹‘—•›‡ƒ”Ǥ
†‘‹‰•‘ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͺͶ™‹ŽŽƒ’’Ž›–‘–Š‡ϐ‹”Ǥ —”–Š‡”ǡƒ›…Šƒ‰‡‹”‡—‡”ƒ–‹‘‘”‹–‡”‡•–
–‘’ƒ”–‡”•‹•–‘„‡‘–‹ϐ‹‡†‹–Š‡•ƒ‡ƒ‡”–‘…‘’Ž›™‹–Š•‡…–‹‘ͶͲȋ„ȌǤ
‹”…—•–ƒ…‡•™Š‡”‡–Š‡ϐ‹”™‹ŽŽ„‡ƒ••‡••‡†ƒ•ƒϐ‹”„—–•ŠƒŽŽ‘–„‡‡Ž‹‰‹„Ž‡ˆ‘”†‡†—…–‹‘‘ƒ……‘—–‘ˆ‹–‡”‡•–ǡ
•ƒŽƒ”›ǡ„‘—•ǡ‡–…Ǥ
Š‡”‡–Š‡ϐ‹”Ǧ
ȋƒȌ ˆƒ‹Ž•–‘ƒ‡–Š‡”‡–—””‡“—‹”‡†—†‡”‡…–‹‘ͳ͵ͻȋͳȌƒ†Šƒ•‘–ƒ†‡ƒ”‡–—”‘””‡˜‹•‡†”‡–—”—†‡”
‡…–‹‘ͳ͵ͻȋͶȌ‘”ͳ͵ͻȋͷȌǡ‘”
ȋ„Ȍ ˆƒ‹Ž•–‘…‘’Ž›™‹–ŠƒŽŽ–Š‡–‡”•‘ˆƒ‘–‹…‡‹••—‡†—†‡”‡…–‹‘ͳͶʹȋͳȌ‘”ˆƒ‹Ž•–‘…‘’Ž›™‹–Šƒ†‹”‡…–‹‘
‹••—‡†—†‡”‡…–‹‘ͳͶʹȋʹȌǡ‘”
ȋ…Ȍ Šƒ˜‹‰ƒ†‡ƒ”‡–—”ǡˆƒ‹Ž•–‘…‘’Ž›™‹–ŠƒŽŽ–Š‡–‡”•‘ˆƒ‘–‹…‡‹••—‡†—†‡”‡…–‹‘ͳͶ͵ȋʹȌǡ
ȋ†Ȍ †‘‡•‘–…‘’Ž›™‹–Š–Š”‡‡…‘†‹–‹‘•‡–‹‘‡†ƒ„‘˜‡—Ȁ•ͳͺͶǤ

–Š‡ –Š‡ ϐ‹” •ŠƒŽŽ ‘– „‡ ‡Ž‹‰‹„Ž‡ ˆ‘” ƒ› †‡†—…–‹‘ ‘ ƒ……‘—– ‘ˆ ‹–‡”‡•– –‘ ƒ ’ƒ”–‡” ƒ† ”‡—‡”ƒ–‹‘ –‘ ƒ
™‘”‹‰’ƒ”–‡”ƒŽ–Š‘—‰Š–Š‡•ƒ‡‹•‡–‹‘‡†‹–Š‡’ƒ”–‡”•Š‹’†‡‡†Ǥ
Computation of Income and Tax thereon of Firm
Š‡ ‹…‘‡ ‘ˆ –Š‡ ϔ‹” •ŠƒŽŽ „‡ …‘’—–‡† ƒ• ’‡” –Š‡ ‘”ƒŽ ’”‘˜‹•‹‘• ‘ˆ –Š‡ …– —†‡” ˜ƒ”‹‘—• Š‡ƒ†• ‘ˆ ‹…‘‡
excluding incomes exempt from tax and deductions under section 80 as applicable.
Rate of Tax: –Š‡…ƒ•‡‘ˆƒϐ‹”™Š‹…Š‹•ƒ••‡••ƒ„Ž‡ƒ••—…Šȋ‹Ǥ‡Ǥǡƒ•ƒϐ‹”Ȍǡ–ƒš‹•…Šƒ”‰‡ƒ„Ž‡‘‹–•–‘–ƒŽ‹…‘‡ƒ–
–Š‡”ƒ–‡‘ˆ͵ͲΨǤ
Surcharge ̷ͳʹΨ•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡‡š…‡‡†••Ǥͳ…”‘”‡Ǥ
Health and Education Cess •ŠƒŽŽ „‡ ƒ††‡† ƒ• ͶΨ ‘ˆ –ƒš ’Ž—• •—”…Šƒ”‰‡Ǥ ‘™‡˜‡”ǡ ϐ‹” ƒ†  ‹• •—„Œ‡…– –‘
Ž–‡”ƒ–‡‹‹—ƒšǮǯ—†‡”•‡…–‹‘ͳͳͷ ȋ†‹•…—••‡†‹†‡–ƒ‹ŽŽƒ–‡”‹–Š‹•…Šƒ’–‡”ȌǤ
ƒ”–‡”•Š‹’‹•‘– ƒ •‡’ƒ”ƒ–‡‡–‹–› †‹•–‹…–ˆ”‘–Š‡’ƒ”–‡”•ǡ„—– ˆ‘”–ƒš ’—”’‘•‡•ƒ ’ƒ”–‡”•Š‹’‹•–ƒš‡† ƒ•ƒ
•‡’ƒ”ƒ–‡‡–‹–›ƒ†–Š‡”‡ˆ‘”‡–‘–ƒŽ‹…‘‡™‹ŽŽ„‡…‘’—–‡†—†‡”˜ƒ”‹‘—•Š‡ƒ†•‘ˆ‹…‘‡Ǥ’ƒ”–‡”•Š‹’ϐ‹”‹•
ƒŽ•‘‡–‹–Ž‡†ˆ‘”†‡†—…–‹‘•—†‡”•‡…–‹‘͵Ͳ–‘͵ͺˆ‘”‡š’‡†‹–—”‡•‹…—””‡†Ǥ‘™‡˜‡”ǡˆ‘”’ƒ›‡–‘ˆ”‡—‡”ƒ–‹‘
–‘’ƒ”–‡”•ƒ†‹–‡”‡•–‘…ƒ’‹–ƒŽƒ”‡ƒŽŽ‘™‡†•—„Œ‡…––‘…‘†‹–‹‘•Žƒ‹††‘™—†‡”•‡…–‹‘ͶͲȋ„ȌǤ
‡…–‹‘ ͶͲȋ„Ȍǡ …‘–ƒ‹• –Š‡ ˆ‘ŽŽ‘™‹‰ …‘†‹–‹‘• ™Š‹…Š ‡‡† –‘ „‡ …‘’Ž‹‡† ™‹–Š ™Š‹Ž‡ ƒ‹‰ ’ƒ›‡– ‘ˆ
”‡—‡”ƒ–‹‘ƒ†‹–‡”‡•–‘„‘””‘™‡†…ƒ’‹–ƒŽ–‘–Š‡’ƒ”–‡”•ǣ
ȋ‹Ȍ ƒ›‡– ‘ˆ •ƒŽƒ”›ǡ „‘—•ǡ …‘‹••‹‘ ‘” ”‡—‡”ƒ–‹‘ „› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡† –‘ ƒ ‘Ǧ™‘”‹‰
’ƒ”–‡”•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ—…Š’ƒ›‡–•ƒ”‡ƒŽŽ‘™‡†‘Ž›–‘™‘”‹‰’ƒ”–‡”•‹ˆ‹–‹•
ƒ—–Š‘”‹•‡†„›–Š‡’ƒ”–‡”•Š‹’†‡‡†ƒ†ƒ”‡‹ƒ……‘”†ƒ…‡™‹–Š’ƒ”–‡”•Š‹’†‡‡†ǤŽ•‘ǡ•—…Š’ƒ›‡–•
•Š‘—Ž†’‡”–ƒ‹–‘–Š‡’‡”‹‘†ƒˆ–‡”–Š‡’ƒ”–‡”•Š‹’†‡‡†Ǥ
ȋ‹‹Ȍ –‡”‡•–’ƒ›ƒ„Ž‡–‘ƒ’ƒ”–‡”ǡƒ—–Š‘”‹•‡†„›–Š‡’ƒ”–‡”•Š‹’†‡‡†ˆ‘”’‡”‹‘†ƒˆ–‡”–Š‡’ƒ”–‡”•Š‹’†‡‡†
•ŠƒŽŽ„‡ƒŽŽ‘™ƒ„Ž‡ƒ•†‡†—…–‹‘•—„Œ‡…––‘ƒƒš‹—‘ˆͳʹΨ’ǤƒǤˆ–Š‡’ƒ”–‡”•Š‹’†‡‡†’”‘˜‹†‡•ˆ‘”
‹–‡”‡•– ƒ– Ž‡•• –Šƒ ͳʹΨ ’Ǥƒǡ –Š‡ †‡†—…–‹‘ ‘ˆ ‹–‡”‡•– •ŠƒŽŽ „‡ ƒŽŽ‘™‡† –‘ –Š‡ ‡š–‡– ’”‘˜‹†‡† „› –Š‡
’ƒ”–‡”•Š‹’†‡‡†Ǥ
ȋ‹‹‹Ȍ –Š‡’ƒ›‡–‘ˆ”‡—‡”ƒ–‹‘–‘™‘”‹‰’ƒ”–‡”ǡƒŽ–Š‘—‰Šƒ—–Š‘”‹•‡†„›’ƒ”–‡”•Š‹’†‡‡†Š‘™‡˜‡”‹–‹•
•—„Œ‡…––‘ƒš‹—‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰Ž‹‹–•Ǥ

Uniform limits for both Professional Firms and Non-Professional Firms:

–Š‡ϐ‹”•–•Ǥ͵ǡͲͲǡͲͲͲ‘ˆ–Š‡„‘‘Ǧ’”‘ϐ‹–‘”‹…ƒ•‡‘ˆƒ •Ǥ ͳǡͷͲǡͲͲͲ ‘” ͻͲΨ ‘ˆ –Š‡ „‘‘Ǧ’”‘ϐ‹–ǡ ™Š‹…Š‡˜‡” ‹•
Ž‘••Ǥ ‘”‡Ǥ
–Š‡„ƒŽƒ…‡‘ˆ–Š‡„‘‘Ǧ’”‘ϐ‹– ͸ͲΨ‘ˆ–Š‡„‘‘’”‘ϐ‹–•Ǥ
 414 Lesson 7 Ȉ EP-TL

‡ƒ‹‰‘ˆ‘‘”‘ϐ‹–ȏš’Žƒƒ–‹‘͵–‘•‡…–‹‘ͶͲȋ„ȌȐ
‘‘Ǧ’”‘ϐ‹–dz‡ƒ•–Š‡‡–’”‘ϐ‹–ǡƒ••Š‘™‹–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ƒ†ƒ‡–Š‡ƒ††‹–‹‘•ƒ††‡†—…–‹‘•
ƒ•’‡”•‡…–‹‘ʹͺ–‘ͶͶ‡š’Žƒ‹‡†—†‡”–Š‡Š‡ƒ†‹…‘‡ˆ”‘—•‹‡••ƒ†”‘ˆ‡••‹‘‹…”‡ƒ•‡†„›–Š‡ƒ‰‰”‡‰ƒ–‡
ƒ‘—–‘ˆ–Š‡”‡—‡”ƒ–‹‘’ƒ‹†‘”’ƒ›ƒ„Ž‡–‘ƒŽŽ–Š‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”‹ˆ•—…Šƒ‘—–Šƒ•„‡‡†‡†—…–‡†™Š‹Ž‡
…‘’—–‹‰–Š‡‡–’”‘ϐ‹–Ǥ–‡”‡•–’ƒ‹†Ȁ’ƒ›ƒ„Ž‡–‘’ƒ”–‡”•‹‡š…‡••‘ˆͳʹΨ•ŠƒŽŽƒŽ•‘„‡†‹•ƒŽŽ‘™‡†ƒ•’‡”•‡…–‹‘
ͶͲȋ„ȌǤ
Šƒ‰‡‹‘•–‹–—–‹‘‘ˆƒ ‹”ȏ‡…–‹‘ͳͺ͹Ȑ
Š‡”‡ƒ––Š‡–‹‡‘ˆƒ‹‰ƒƒ••‡••‡–—†‡”‡…–‹‘ͳͶ͵‘”‡…–‹‘ͳͶͶ‘ˆ–Š‡…–‹–‹•ˆ‘—†–Šƒ–ƒ…Šƒ‰‡Šƒ•
‘……—””‡†‹–Š‡…‘•–‹–—–‹‘‘ˆƒϐ‹”ǡ–Š‡ƒ••‡••‡–™‹ŽŽ„‡ƒ†‡‘–Š‡ϐ‹”ƒ•…‘•–‹–—–‡†ƒ––Š‡–‹‡‘ˆƒ‹‰
–Š‡ƒ••‡••‡–Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘–Š‡”‡‹•ƒ…Šƒ‰‡‹–Š‡…‘•–‹–—–‹‘‘ˆƒϐ‹”‹ˆǣ
ȋƒȌ ‘‡ ‘” ‘”‡ ‘ˆ –Š‡ ’ƒ”–‡”• …‡ƒ•‡ –‘ „‡ ’ƒ”–‡”• ‘” ‘‡ ‘” ‘”‡ ‡™ ’ƒ”–‡”• ƒ”‡ ƒ†‹––‡†ǡ ‹ •—…Š
…‹”…—•–ƒ…‡•–Šƒ–‘‡‘”‘”‡‘ˆ–Š‡’‡”•‘•™Š‘™‡”‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”„‡ˆ‘”‡–Š‡…Šƒ‰‡…‘–‹—‡
ƒ•’ƒ”–‡”‘”’ƒ”–‡”•ƒˆ–‡”–Š‡…Šƒ‰‡ȋ–Š‹•…Žƒ—•‡ǡŠ‘™‡˜‡”ǡ•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ…ƒ•‡™Š‡”‡–Š‡ϐ‹”‹•
†‹••‘Ž˜‡†‘–Š‡†‡ƒ–Š‘ˆƒ›‘ˆ‹–•’ƒ”–‡”•Ȍ‘”
ȋ„Ȍ ™Š‡”‡ƒŽŽ–Š‡’ƒ”–‡”•…‘–‹—‡™‹–Šƒ…Šƒ‰‡‹–Š‡‹””‡•’‡…–‹˜‡•Šƒ”‡•‘”‹–Š‡•Šƒ”‡•‘ˆ•‘‡‘ˆ–Š‡Ǥ

‘••‡•‘ˆ‡‰‹•–‡”‡† ‹”•ȏ‡…–‹‘͹ͷȐ
Š‡”‡–Š‡ƒ••‡••‡‡‹•ƒϐ‹”ǡƒ›Ž‘••‹”‡Žƒ–‹‘–‘–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ
’”‹Žǡͳͻͻʹǡ™Š‹…Š…‘—Ž†‘–„‡•‡–‘ˆˆƒ‰ƒ‹•–ƒ›‘–Š‡”‹…‘‡‘ˆ–Š‡ϐ‹”ƒ†™Š‹…ŠŠƒ†„‡‡ƒ’’‘”–‹‘‡†–‘ƒ
’ƒ”–‡”‘ˆ–Š‡ϐ‹”„—–…‘—Ž†‘–„‡•‡–‘ˆˆ„›•—…Š’ƒ”–‡”’”‹‘”–‘–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘–Š‡ͳ•–†ƒ›
‘ˆ’”‹Žǡͳͻͻ͵ǡ–Š‡ǡ•—…ŠŽ‘•••ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘„‡•‡–‘ˆˆƒ‰ƒ‹•––Š‡‹…‘‡‘ˆ–Š‡ϐ‹”•—„Œ‡…––‘–Š‡…‘†‹–‹‘
–Šƒ––Š‡’ƒ”–‡”…‘–‹—‡•‹–Š‡•ƒ‹†ϐ‹”ƒ†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ˆ‘”•‡–‘ˆˆ—†‡”•‡…–‹‘•͹Ͳǡ͹ͳǡ͹ʹǡ͹͵ǡ͹Ͷƒ†
͹ͶǤ
ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆŽ‘••‡•‹…ƒ•‡‘ˆ…Šƒ‰‡‹…‘•–‹–—–‹‘‘ˆϐ‹”‘”‘•—……‡••‹‘
ȏ‡…–‹‘͹ͺȋͳȌȐ
Š‡”‡ƒ…Šƒ‰‡Šƒ•‘……—””‡†‹–Š‡…‘•–‹–—–‹‘‘ˆƒϐ‹”‘ƒ……‘—–‘ˆ†‡ƒ–Š‘””‡–‹”‡‡–ǡ–Š‡ϐ‹”‹•‘–‡–‹–Ž‡†
–‘…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ•‘—…Š‘ˆ–Š‡Ž‘••ƒ•‹•’”‘’‘”–‹‘ƒ–‡–‘–Š‡•Šƒ”‡‘ˆƒ†‡…‡ƒ•‡†‘””‡–‹”‡†’ƒ”–‡”‹
–Š‡ϐ‹”‹”‡•’‡…–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
‡–Š‘†‘ˆ…‘’—–ƒ–‹‘‘ˆƒ‘—–‘––‘„‡ƒŽŽ‘™‡†–‘„‡•‡–‘ˆˆƒ†…ƒ””‹‡†ˆ‘”™ƒ”†
–‡’ͳǣ–Š‡›‡ƒ”‘ˆ…Šƒ‰‡ϐ‹”•–ƒ•…‡”–ƒ‹–Š‡•Šƒ”‡‘ˆ‘—–‰‘‹‰’ƒ”–‡”‹–Š‡’”‘ϐ‹–‘”Ž‘••‘ˆ–Š‡ϐ‹”Ǥ
–‡’ʹǣ‘’—–‡•Šƒ”‡‘ˆŽ‘••‘ˆ–Š‡‘—–‰‘‹‰’ƒ”–‡”ˆ‘”‡ƒ…Š‘ˆ–Š‡’”‡…‡†‹‰›‡ƒ”•ˆ”‘™Š‹…Š–Š‡Ž‘••‹•…ƒ””‹‡†
ˆ‘”™ƒ”†Ǥ
–‡’͵ǣ‘—–‘–ƒŽŽ‘™‡†–‘„‡•‡–‘ˆˆƒ†…ƒ””‹‡†ˆ‘”™ƒ”†ǣ
ȋ‹Ȍ —‘ˆȏ‘—–•…‘’—–‡†‹–‡’•ȋͳȌƒ†ȋʹȌ™Š‡”‡–Š‡”‡‹•Ž‘••‹–Š‡›‡ƒ”‘ˆ…Šƒ‰‡ȐǤ
ȋ‹‹Ȍ ‹ˆˆ‡”‡…‡‘ˆȏ‘—–•…‘’—–‡†‹–‡’•ȋͳȌƒ†ȋʹȌ‹…ƒ•‡‘ˆ’”‘ϐ‹–‹–Š‡›‡ƒ”‘ˆ…Šƒ‰‡ȐǤ

Carry forward of unabsorbed depreciation

ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒ†—ƒ„•‘”„‡†…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘•…‹‡–‹ϐ‹…”‡•‡ƒ”…Š…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†„›–Š‡
”‡…‘•–‹–—–‡†ϐ‹”ȋ™‹–Š‘—–†‡†—…–‹‰•Šƒ”‡‘ˆ–Š‡‘—–‰‘‹‰’ƒ”–‡”Ȍƒ•–Š‡•‡ƒ”‡‘–…‘˜‡”‡†—†‡”•‡…–‹‘͹ͺǤ
Assessment of Partners
•’‡”‡…–‹‘ͳͲȋʹȌ‘ˆ–Š‡…–ǡƒ›’‡”•‘™Š‘‹•ƒ’ƒ”–‡”‘ˆƒϐ‹”™Š‹…Š‹•ƒ••‡••‡†ƒ••—…ŠǡŠ‹••Šƒ”‡‹–Š‡
–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”™‹ŽŽ‘–„‡‹…Ž—†‡†‹…‘’—–‹‰Š‹•–‘–ƒŽ‹…‘‡Ǥƒ”–‡”‹…Ž—†‡•ƒ‹‘”ƒ†‹––‡†–‘–Š‡
„‡‡ϐ‹–•‘ˆ’ƒ”–‡”•Š‹’ƒ•’‡”‡…–‹‘ʹȋʹ͵Ȍ‘ˆ–Š‡…–Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 415

—”–Š‡”ǡ–Š‡‡š’Žƒƒ–‹‘ –‘—„Ǧ…Žƒ—•‡ȋʹȌ’”‘˜‹†‡•–Šƒ––Š‡•Šƒ”‡‘ˆƒ’ƒ”–‡”‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”
ƒ••‡••‡†ƒ•ƒϐ‹”•ŠƒŽŽ„‡ƒƒ‘—–™Š‹…Š„‡ƒ”•–‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•–Š‡ƒ‘—–
‘ˆŠ‹••Šƒ”‡‹–Š‡’”‘ϐ‹–•‘ˆ–Š‡ϐ‹”ȋ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’ƒ”–‡”•Š‹’†‡‡†Ȍ„‡ƒ”•–‘•—…Š’”‘ϐ‹–•Ǥ
 –‡”• ‘ˆ ƒ ˆ‘”—Žƒǡ –Š‡ ƒ‘—– ‡š‡’– ™‘—Ž† „‡ǣ ƒ”–‡”• •Šƒ”‡ ‹ –Š‡ ’”‘ϐ‹– ‘ˆ –Š‡ ϐ‹” ვ •Š‘™ ‹ –Š‡
’ƒ”–‡”•Š‹’†‡‡†‘–ƒŽ”‘ϐ‹–•‘ˆ–Š‡ ‹”š‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”Ǥ
›‹–‡”‡•–ǡ•ƒŽƒ”›ǡ„‘—•ǡ…‘‹••‹‘‘””‡—‡”ƒ–‹‘„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†™Š‹…Š‹•†—‡–‘‘””‡…‡‹˜‡†„›ƒ
’ƒ”–‡” ‘ˆ ƒ ϐ‹” ˆ”‘ –Š‡ ϐ‹” ™‹ŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ‹ –Š‡ Šƒ†• ‘ˆ –Š‡ ’ƒ”–‡” ȋ–‘ –Š‡ ‡š–‡– ƒŽŽ‘™‡† ƒ•
†‡†—…–‹‘–‘–Š‡ϐ‹”Ȍ—†‡”–Š‡Š‡ƒ†Dz’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzǤ‘™‡˜‡”ǡ‹ˆ•—…Š•ƒŽƒ”›ǡ‹–‡”‡•–ǡ
„‘—•ǡ…‘‹••‹‘‘””‡—‡”ƒ–‹‘ȋ‘”ƒ›’ƒ”––Š‡”‡‘ˆȌŠƒ•‘–„‡‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘ƒ•’‡”‡…–‹‘ͶͲȋ„Ȍ
‹–Š‡Šƒ†•‘ˆ–Š‡ϐ‹”ǡ–Š‡ƒ‘—–‘–ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘•ŠƒŽŽ‘–„‡…Šƒ”‰‡†–‘–ƒš‹–Š‡Šƒ†•‘ˆ’ƒ”–‡”•Ǥ
—”–Š‡”ǡ†‡†—…–‹‘•—†‡”‡…–‹‘•͵ʹ–‘͵͹…ƒ„‡…Žƒ‹‡†„›ƒ’ƒ”–‡”ˆ”‘ƒ›‹…‘‡™Š‡”‡ƒ›‡š’‡†‹–—”‡
™ƒ•‹…—””‡†–‘‡ƒ”•—…Š‹…‘‡Ǥ
—……‡••‹‘‘ˆ‘‡ϐ‹”„›ƒ‘–Š‡”ϐ‹”ȏ‡…–‹‘ͳͺͺȐ
Š‡ƒŽŽ–Š‡’ƒ”–‡”•‹–Š‡’”‡†‡…‡••‘”ϐ‹”ƒ”‡”‡’Žƒ…‡†„›‡™’ƒ”–‡”•‹–Š‡•—……‡••‘”ϐ‹”ǡ‹–‹•‘™ƒ•
•—……‡••‹‘‘ˆ‘‡ϐ‹”„›ƒ‘–Š‡”ϐ‹”Ǥˆƒϐ‹”‹•†‹••‘Ž˜‡†ƒ†•‘‡‘ˆ–Š‡’ƒ”–‡”•–ƒ‡‘˜‡”–Š‡ϐ‹”ǯ•„—•‹‡••
‘”…ƒ””›‘ƒ•‹‹Žƒ”„—•‹‡••™‹–Š‘”™‹–Š‘—–‡™’ƒ”–‡”•ǡ‹–™‘—Ž†„‡ƒ…ƒ•‡‘ˆ•—……‡••‹‘„›ƒ‡™ϐ‹”ȋ͸ʹǤǤǤ
͹ͷȌǤ
CIT v. K.H. Chambers (1965) 55 ITR 674ǡ–Š‡—’”‡‡‘—”–Žƒ‹††‘™–Š‡ˆ‘ŽŽ‘™‹‰”‡“—‹•‹–‡•‘ˆ•—……‡••‹‘ǣ
ȋ‹Ȍ Š‡”‡‹•ƒ…Šƒ‰‡‘ˆ‘™‡”•Š‹’Ǥ
ȋ‹‹Ȍ Š‡™Š‘Ž‡„—•‹‡••‹•–”ƒ•ˆ‡””‡†Ǥ
ȋ‹‹Ȍ —„•–ƒ–‹ƒŽŽ›–Š‡‹†‡–‹–›ƒ†–Š‡…‘–‹—‹–›‘ˆ–Š‡„—•‹‡••ƒ”‡’”‡•‡”˜‡†Ǥ

Š‡”‡–Š‡’ƒ”–‡”•Š‹’†‡‡††‘‡•‘–’”‘˜‹†‡•’‡…‹ϐ‹…ƒŽŽ›ˆ‘”…‘–‹—ƒ…‡‘ˆ–Š‡ϐ‹”‘–Š‡†‡ƒ–Š‘ˆƒ’ƒ”–‡”ǡ
–Š‡”‡™‘—Ž†„‡‘…Šƒ‰‡‹…‘•–‹–—–‹‘‘ˆ–Š‡ϐ‹”„—–‹–™‘—Ž†„‡ƒ…ƒ•‡‘ˆ•—……‡••‹‘ǤȏAddl. CIT v. Thyagasundara
Mudaliar (1981) 127 ITR 520ȐǤ
Š‡”‡ƒϐ‹”‹••—……‡‡†‡†„›ƒ‘–Š‡”ϐ‹”ǡ•‡’ƒ”ƒ–‡ƒ••‡••‡–•ƒ”‡ƒ†‡‘–Š‡’”‡†‡…‡••‘”ƒ†•—……‡••‘”ϐ‹”•
”‡•’‡…–‹˜‡Ž›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳ͹ͲǤ‡…–‹‘ͳ͹Ͳ’”‘˜‹†‡•–Šƒ––Š‡’”‡†‡…‡••‘”•ŠƒŽŽ„‡
ƒ••‡••‡†‹”‡•’‡…–‘ˆ–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡•—……‡••‹‘–‘‘’Žƒ…‡—’–‘–Š‡†ƒ–‡‘ˆ•—……‡••‹‘
ƒ†–Š‡•—……‡••‘”•ŠƒŽŽ„‡ƒ••‡••‡†‹”‡•’‡…–‘ˆ–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ƒˆ–‡”–Š‡†ƒ–‡‘ˆ•—……‡••‹‘Ǥˆ–Š‡
’”‡†‡…‡••‘”…ƒ‘–„‡ˆ‘—†ǡ‘”–Š‡–ƒšƒ••‡••‡†‘–Š‡’”‡†‡…‡••‘”…ƒ‘–„‡”‡…‘˜‡”‡†ˆ”‘Š‹ˆ‘”–Š‡’”‡˜‹‘—•
›‡ƒ”ȋ‹™Š‹…Š–Š‡•—……‡••‹‘–‘‘’Žƒ…‡Ȍƒ†–Š‡’”‡˜‹‘—•›‡ƒ”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰•—…Š’”‡˜‹‘—•›‡ƒ”ǡ–Š‡
—”‡ƒŽ‹•‡†–ƒš’ƒ›ƒ„Ž‡„›–Š‡’”‡†‡…‡••‘”•ŠƒŽŽ„‡”‡…‘˜‡”‡†ˆ”‘–Š‡•—……‡••‘”Ǥ
‘™‡˜‡”ǡ–Š‡•—……‡••‘”ϐ‹”‹•‡–‹–Ž‡†–‘”‡…‘˜‡”ˆ”‘–Š‡’”‡†‡…‡••‘”ϐ‹”ƒ›–ƒš’ƒ‹†„›‹–‘„‡ŠƒŽˆ‘ˆ–Š‡
ˆ‘”‡”Ǥˆƒ›–ƒš‹•†—‡ƒ‰ƒ‹•–ƒ›’ƒ”–‡”‘ˆ–Š‡’”‡†‡…‡••‘”ϐ‹”ǡ‹–…ƒ‘–„‡”‡…‘˜‡”‡†ˆ”‘–Š‡•—……‡••‘”ϐ‹”Ǥ
 ‘‹–ƒ†‡˜‡”ƒŽ‹ƒ„‹Ž‹–‹‡•‘ˆƒ”–‡”•ˆ‘”ƒšƒ›ƒ„Ž‡„› ‹”ȏ‡…–‹‘ͳͺͺȐ
‡…–‹‘ ͳͺͺ ’”‘˜‹†‡• –Šƒ– ‡˜‡”› ’‡”•‘ ™Š‘ ™ƒ•ǡ †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ”ǡ ƒ ’ƒ”–‡” ‘ˆ ƒ ϐ‹”ǡ ƒ† –Š‡ Ž‡‰ƒŽ
”‡’”‡•‡–ƒ–‹˜‡‘ˆƒ›•—…Š’‡”•‘™Š‘‹•†‡…‡ƒ•‡†ǡ•ŠƒŽŽ„‡Œ‘‹–Ž›ƒ†•‡˜‡”ƒŽŽ›Ž‹ƒ„Ž‡ƒŽ‘‰™‹–Š–Š‡ϐ‹”ˆ‘”–Š‡
ƒ‘—–‘ˆ–ƒšǡ’‡ƒŽ–›‘”‘–Š‡”•—’ƒ›ƒ„Ž‡„›–Š‡ϐ‹”ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”–‘™Š‹…Š•—…Š’”‡˜‹‘—•›‡ƒ”‹•
”‡Ž‡˜ƒ–ǡƒ†ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ…‘‡Ǧ–ƒš…–ǡ•‘ˆƒ”ƒ•ƒ›„‡ǡ•ŠƒŽŽƒ’’Ž›–‘–Š‡ƒ••‡••‡–‘ˆ•—…Š–ƒš‘”
‹’‘•‹–‹‘‘”Ž‡˜›‘ˆ•—…Š’‡ƒŽ–›‘”‘–Š‡”•—Ǥ
 ‹”‹••‘Ž˜‡†‘”—•‹‡••‹•…‘–‹—‡†ȏ‡…–‹‘ͳͺͻȐ
Š‡”‡ƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘„›ƒϐ‹”Šƒ•„‡‡†‹•…‘–‹—‡†‘”™Š‡”‡ƒϐ‹”‹•†‹••‘Ž˜‡†ǡ–Š‡
ƒ••‡••‡–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”•ŠƒŽŽ„‡ƒ†‡ƒ•‹ˆ‘•—…Š†‹•…‘–‹—ƒ…‡‘”†‹••‘Ž—–‹‘Šƒ†–ƒ‡’Žƒ…‡
ƒ† ƒŽŽ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡ …–ǡ ‹…Ž—†‹‰ –Š‡ ’”‘˜‹•‹‘• ”‡Žƒ–‹‰ –‘ ’‡ƒŽ–› ‘” ƒ› ‘–Š‡” •— ȋ‹–‡”‡•–ǡ ϐ‹‡Ȍ
…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡…–ǡ•ŠƒŽŽƒ’’Ž›Ǥ‘•‡“—‡–Ž›ǡ‡˜‡”›’‡”•‘™Š‘™ƒ•ƒ’ƒ”–‡”‘ˆ–Š‡ϐ‹”ƒ––Š‡–‹‡‘ˆ
†‹•…‘–‹—ƒ…‡ ‘ˆ „—•‹‡•• ‘” †‹••‘Ž—–‹‘ ‘ˆ –Š‡ ϐ‹” ƒ† Ž‡‰ƒŽ ”‡’”‡•‡–ƒ–‹˜‡ ‘ˆ –Š‡ †‡…‡ƒ•‡† ’ƒ”–‡” •ŠƒŽŽ „‡
Œ‘‹–Ž›ƒ†•‡˜‡”ƒŽŽ›Ž‹ƒ„Ž‡–‘–Š‡ƒ‘—–‘ˆ–ƒš’‡ƒŽ–›ƒ†ƒ›‘–Š‡”•—ǤŠ‡”‡–Š‡†‹••‘Ž—–‹‘‘”†‹•…‘–‹—ƒ…‡
 416 Lesson 7 Ȉ EP-TL

‘ˆ„—•‹‡••–ƒ‡•’Žƒ…‡ƒˆ–‡”ƒ›’”‘…‡‡†‹‰•‹”‡•’‡…–‘ˆƒƒ••‡••‡–›‡ƒ”Šƒ˜‡…‘‡…‡†ǡ–Š‡’”‘…‡‡†‹‰•
ƒ›„‡…‘–‹—‡†ƒ‰ƒ‹•––Š‡’ƒ”–‡”•‘”Ž‡‰ƒŽ”‡’”‡•‡–ƒ–‹˜‡‘ˆƒ†‡…‡ƒ•‡†’ƒ”–‡”ˆ”‘–Š‡•–ƒ‰‡ƒ–™Š‹…Š–Š‡
’”‘…‡‡†‹‰••–‘‘†ƒ––Š‡–‹‡‘ˆ•—…Š†‹••‘Ž—–‹‘‘”†‹•…‘–‹—ƒ…‡Ǥ
Š—•ǡ‡˜‡”›’ƒ”–‡”‘ˆ–Š‡ϐ‹”ƒ†–Š‡Ž‡‰ƒŽ”‡’”‡•‡–ƒ–‹˜‡‘ˆ–Š‡†‡…‡ƒ•‡†’ƒ”–‡”‹•Ž‹ƒ„Ž‡–‘’ƒ›–Š‡–ƒš™Š‹…Š‹•
ƒŽ”‡ƒ†›†—‡‘”ƒ›Šƒ˜‡„‡…‘‡†—‡ƒˆ–‡”–Š‡†‹••‘Ž—–‹‘ǡ‹””‡•’‡…–‹˜‡‘ˆŠ‹•‹–‡”‡•–‹–Š‡ϐ‹”Ǥ
‘™‡˜‡”ǡ‹ˆ–Š‡”‡™ƒ•ƒ›‹””‡…‘˜‡”ƒ„Ž‡ƒ‘—–ƒ––Š‡–‹‡‘ˆ†‹••‘Ž—–‹‘‘”†‹•…‘–‹—ƒ…‡‘ˆ„—•‹‡••ƒ†Žƒ–‡”
‘‹–™ƒ•”‡…‘˜‡”‡†„›–Š‡’ƒ”–‡”•ǡ–Š‡’ƒ”–‡”••ŠƒŽŽ’‡”•‘ƒŽŽ›’ƒ›–Š‡–ƒš‘–Š‡‹”•Šƒ”‡•‘”‡…‘˜‡”‡†Ǥ
ȍȎȑͳͳͷ Ȓ
Š‡’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ ͳͳͷ ƒ”‡ ƒ’’Ž‹…ƒ„Ž‡ –‘ ƒŽŽ ƒ••‡••‡‡•‡š…‡’– …‘’ƒ‹‡• ™Š‡”‡–Š‡ ”‡‰—Žƒ” ‹…‘‡ –ƒš
’ƒ›ƒ„Ž‡ˆ‘”ƒ’”‡˜‹‘—•›‡ƒ”‹•Ž‡••–Šƒ–Š‡ƒŽ–‡”ƒ–‡‹‹—–ƒš’ƒ›ƒ„Ž‡ˆ‘”•—…Š’”‡˜‹‘—•›‡ƒ”–Š‡–Š‡ƒ†Œ—•–‡†
–‘–ƒŽ‹…‘‡•ŠƒŽŽ†‡‡‡†–‘„‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Šƒ–’‡”•‘ˆ‘”•—…Š’”‡˜‹‘—•›‡ƒ”ƒ†‹–•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›
‹…‘‡–ƒš‘•—…Šƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡̷ͳͺǤͷΨ’Ž—•‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨǤ
ͳʹΨ•—”…Šƒ”‰‡‹ˆ†Œ—•–‡†‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”‘”‡š…‡‡†•ͳ…”‘”‡’Ž—•ͶΨ‡ƒŽ–ŠƬ†—…ƒ–‹‘…‡••‹
ƒŽŽ…ƒ•‡•Ǥ…ƒ•‡‘ˆ‹†‹˜‹†—ƒŽ•—”…Šƒ”‰‡™‹ŽŽ„‡ͳͲΨ‹ˆ†Œ—•–‡†‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”‘”‡š…‡‡†•ͷͲƒ…•
ƒ†ͳͷΨ‹ˆ‹–‡š…‡‡†•ͳ…”‘”‡ƒ†ʹͷΨ‹ˆ‹–‡š…‡‡†•ʹ…”‘”‡•ƒ†͵͹Ψ‹ˆ‹–‡š…‡‡†•ͷ…”‘”‡•Ǥ
–‹•ˆ—”–Š‡”’”‘˜‹†‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ—†‡”Šƒ’–‡”Ǧ•ŠƒŽŽ‘Ž›ƒ’’Ž›–‘ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†—
—†‹˜‹†‡†ˆƒ‹Ž›‘”ƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”ƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ȋ™Š‡–Š‡”‹…‘”’‘”ƒ–‡†‘”‘–Ȍ‘”ƒƒ”–‹ϐ‹…‹ƒŽ
Œ—”‹†‹…ƒŽ’‡”•‘‹ˆ–Š‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡‘ˆ•—…Š’‡”•‘‡š…‡‡†•twenty lakh rupees.
‘™‡˜‡”ǡ‹•Ž‡˜‹‡†̷ͻΨ‹…ƒ•‡‘ˆƒ‘Ǧ…‘”’‘”ƒ–‡ƒ••‡••‡‡„‡‹‰ƒ—‹–Ž‘…ƒ–‡†‹–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ
‡”˜‹…‡•‡–”‡ƒ††‡”‹˜‹‰‹–•‹…‘‡•‘Ž‡Ž›‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡Ǥ—”…Šƒ”‰‡ƒ†…‡••ƒ•ƒ’’Ž‹…ƒ„Ž‡
™‹ŽŽƒŽ•‘„‡Ž‡˜‹‡†Ǥȋ’’Ž‹…ƒ„Ž‡ˆ”‘••‡••‡–‡ƒ”ʹͲʹͲǦʹͳȌ
Š‡ ”‡‰—Žƒ” ‹…‘‡ –ƒš ’ƒ›ƒ„Ž‡ •ŠƒŽŽ „‡ –Š‡ ‹…‘‡Ǧ–ƒš ’ƒ›ƒ„Ž‡ ˆ‘” ƒ ’”‡˜‹‘—• ›‡ƒ” „› ƒ ’‡”•‘ ‘–Š‡” –Šƒ ƒ
…‘’ƒ›‘Š‹•–‘–ƒŽ‹…‘‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ǧ
ǡ‹Ǥ‡Ǥǡ•‡…–‹‘ͳͳͷ –‘ͳͳͷ Ǥ
†Œ—•–‡†–‘–ƒŽ‹…‘‡•ŠƒŽŽ„‡–Š‡–‘–ƒŽ‹…‘‡„‡ˆ‘”‡‰‹˜‹‰‡ˆˆ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ǧƒ•‹…”‡ƒ•‡†
„›–Š‡†‡†—…–‹‘•…Žƒ‹‡†—†‡”ƒ›•‡…–‹‘ͺͲ–‘‡…–‹‘ͺͲȋ‘–Š‡”–Šƒ•‡…–‹‘ͺͲȌ‹…Ž—†‡†‹Šƒ’–‡”
Ǧ—†‡”–Š‡Š‡ƒ†‹‰DzǦ‡†—…–‹‘•‹”‡•’‡…–‘ˆ…‡”–ƒ‹‹…‘‡•dzƒ††‡†—…–‹‘…Žƒ‹‡†—†‡”•‡…–‹‘ͳͲǤ
—”–Š‡”ǡ–‘–ƒŽ‹…‘‡•ŠƒŽŽ„‡‹…”‡ƒ•‡†„›–Š‡†‡†—…–‹‘…Žƒ‹‡†—†‡”•‡…–‹‘͵ͷˆ‘”’—”’‘•‡‘ˆ…‘’—–ƒ–‹‘
‘ˆƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡ǤŠ‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡—†‡”•‡…–‹‘͵ʹǡƒ•‹ˆ‘†‡†—…–‹‘—Ȁ•͵ͷ‹
”‡•’‡…–‘ˆ•—…Šƒ••‡–•™ƒ•ƒŽŽ‘™‡†ǡ•ŠƒŽŽŠ‘™‡˜‡”ǡ„‡”‡†—…‡†‹…‘’—–‹‰–Š‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡Ǥ

Particulars (Rs.)
ƒšƒ„Ž‡‹…‘‡‘ˆ–Š‡–ƒš’ƒ›‡” XXXX
Add ǣ‘—–‘ˆ†‡†—…–‹‘…Žƒ‹‡†—†‡”•‡…–‹‘ͺͲ–‘ͺͲȋ‡š…‡’–ͺͲȌ XXXX
Add ǣ ‘—– ‘ˆ †‡†—…–‹‘ …Žƒ‹‡† —†‡” •‡…–‹‘ ͵ͷ ȋƒ• ”‡†—…‡† „› –Š‡ ƒ‘—– ‘ˆ XXXX
†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͵ʹȌ
Add ǣ‘—–‘ˆ†‡†—…–‹‘…Žƒ‹‡†—†‡”•‡…–‹‘ͳͲ XXXX
†Œ—•–‡†–‘–ƒŽ‹…‘‡ XXXX

Š‡’”‘˜‹•‹‘•…ƒ„‡•—ƒ”‹œ‡†ƒ•ǣ
ͳǤ ˆ”‡‰—Žƒ”‹…‘‡–ƒš’ƒ›ƒ„Ž‡‹•‘”‡–Šƒ‘”‡“—ƒŽ–‘–Š‡ƒŽ–‡”ƒ–‡‹‹—–ƒšȋͳͺǤͷΨ’Ž—•‡ƒŽ–Šƒ†
†—…ƒ–‹‘…‡••̷ͶΨ‘ˆƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡Ȍǡ–Š‡”‡‰—Žƒ”‹…‘‡–ƒš’ƒ›ƒ„Ž‡‹•–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ–Š‡
ƒ••‡••‡‡Ǥ
ʹǤ ˆ”‡‰—Žƒ”‹…‘‡–ƒš’ƒ›ƒ„Ž‡‹•Ž‡••–Šƒ–Š‡ƒŽ–‡”ƒ–‡‹‹—–ƒšȋͳͺǤͷΨ’Ž—•‡ƒŽ–Šƒ††—…ƒ–‹‘
…‡••̷ͶΨ‘ˆƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡Ȍǡ–Š‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡‹•–Š‡†‡‡‡†‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”
–Šƒ–›‡ƒ”ƒ†ƒŽ–‡”ƒ–‡‹‹—–ƒš‹•–Š‡–ƒšŽ‹ƒ„‹Ž‹–›Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 417

‘™‡˜‡”ǡ‹–‹•ƒŽ•‘’”‘˜‹†‡†–Šƒ––Š‡…”‡†‹–ˆ‘”–ƒšȋ–ƒš…”‡†‹–Ȍ’ƒ‹†„›ƒ’‡”•‘‘ƒ……‘—–‘ˆ—†‡”Šƒ’–‡”
Ǧ•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘–Š‡‡š–‡–‘ˆ–Š‡‡š…‡••‘ˆ–Š‡’ƒ‹†‘˜‡”–Š‡”‡‰—Žƒ”‹…‘‡Ǧ–ƒšǤŠ‹•–ƒš…”‡†‹–•ŠƒŽŽ
„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†—’–‘–Š‡ϐ‹ˆ–‡‡ƒ••‡••‡–›‡ƒ”•‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰–Š‡ƒ••‡••‡–›‡ƒ”
ˆ‘”™Š‹…Š•—…Š…”‡†‹–„‡…‘‡•ƒŽŽ‘™ƒ„Ž‡ƒ†•‡–‘ˆˆƒ‰ƒ‹•–”‡‰—Žƒ”–ƒšŽ‹ƒ„‹Ž‹–›Ǥ‘–Š‡”™‘”†•ǡ‹–•ŠƒŽŽ„‡ƒŽŽ‘™‡†
–‘„‡•‡–‘ˆˆˆ‘”ƒƒ••‡••‡–›‡ƒ”‹™Š‹…Š–Š‡”‡‰—Žƒ”‹…‘‡Ǧ–ƒš‡š…‡‡†•–Š‡ǡ–‘–Š‡‡š–‡–‘ˆ–Š‡‡š…‡••‘ˆ
–Š‡”‡‰—Žƒ”‹…‘‡Ǧ–ƒš‘˜‡”–Š‡Ǥ
Š‡ƒ‘—–‘ˆ…”‡†‹–•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡•—„•‡“—‡–›‡ƒ”–‘–Š‡‡š–‡–•—…Š
…”‡†‹– ”‡Žƒ–‡• –‘ –Š‡ †‹ˆˆ‡”‡…‡ „‡–™‡‡ –Š‡ ƒ‘—–• ‘ˆ ˆ‘”‡‹‰ –ƒš …”‡†‹– ȋ Ȍ ƒŽŽ‘™‡† ƒ‰ƒ‹•–  ƒ† 
ƒŽŽ‘™ƒ„Ž‡ƒ‰ƒ‹•––Š‡–ƒš…‘’—–‡†—†‡””‡‰—Žƒ”’”‘˜‹•‹‘•‘ˆ–Š‡…–Ǥ
˜‡”›’‡”•‘–‘™Š‹…Š–Š‹••‡…–‹‘ƒ’’Ž‹‡••ŠƒŽŽ‘„–ƒ‹ƒ”‡’‘”–ǡ„‡ˆ‘”‡–Š‡•’‡…‹ϐ‹‡††ƒ–‡”‡ˆ‡””‡†–‘‹•‡…–‹‘
ͶͶǡ‹•—…Šˆ‘”ƒ•ƒ›„‡’”‡•…”‹„‡†ǡˆ”‘ƒƒ……‘—–ƒ–”‡ˆ‡””‡†–‘‹–Š‡š’Žƒƒ–‹‘„‡Ž‘™•—„Ǧ•‡…–‹‘ȋʹȌ
‘ˆ•‡…–‹‘ʹͺͺǡ…‡”–‹ˆ›‹‰–Šƒ––Š‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡ƒ†–Š‡ƒŽ–‡”ƒ–‡‹‹—–ƒšŠƒ˜‡„‡‡…‘’—–‡†‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”ƒ†ˆ—”‹•Š•—…Š”‡’‘”–„›–Šƒ–†ƒ–‡Ǥȏ•‡”–‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
ŽŽ‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‡…–ǡŽ‹‡ƒ†˜ƒ…‡–ƒšǡ‹–‡”‡•–—Ȁ•ʹ͵ͶȀȀ•ŠƒŽŽƒ’’Ž›–‘ƒ••‡••‡‡™Š‘‹•Ž‹ƒ„Ž‡–‘’ƒ›
Ǥ
Š‡’”‘˜‹•‹‘•‘ˆ•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ’‡”•‘™Š‘Šƒ•‡š‡”…‹•‡†–Š‡‘’–‹‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͳͷ‘”
•‡…–‹‘ͳͳͷǤȏ ‹ƒ…‡…–ǡʹͲʹͲȐ

Illustration 8
ǡƒ†ƒ”‡–Š‡’ƒ”–‡”•ˆ‘”͵ǣʹǣͳ•Šƒ”‡”‡•’‡…–‹˜‡Ž›ǡ‹ƒϐ‹”‡‰ƒ‰‡†‹‡†‹…ƒŽ’”‘ˆ‡••‹‘Ǥ‘’—–‡–Š‡
–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”ˆ‘”–Š‡›‡ƒ”‡†‡†͵ͳ•–ƒ”…ŠǡʹͲʹʹǣ

Particular Rs. Particular Rs.

ˆϐ‹…‡š’‡•‡• ͳͷǡͶͲͲ
”‘••”‘ϐ‹– ͶͲǡͲͲͲ
…‘‡ƒš ͳǡͲͲͲ ‡–‘•• ͺǡ͹ͲͲ
ƒŽƒ”›–‘ ͷǡͲͲͲ ‡–‘•• ͷǡͺͲͲ
ƒŽƒ”›–‘ ͶǡͲͲͲ ‡–‘•• ʹǡͻͲͲ
ƒŽƒ”›–‘ ͳͲǡͲͲͲ
ͳͲǡͲͲͲ
ͳʹǡͲͲͲ
Total 57,400 Total 57,400

Solution:

‘’—–ƒ–‹‘‘ˆ‘‘”‘ϐ‹–‘ˆ–Š‡ ‹” Rs. Rs. Rs.

‡–‘••ƒ•’‡”ƬȀ… ȋͳ͹ǡͶͲͲȌ
Addǣƒ†‹••‹„Ž‡š’‡•‡•ǣ
…‘‡Ǧ–ƒš ͳǡͲͲͲ
ƒŽƒ”›–‘’ƒ”–‡”•ǣ
 ͷǡͲͲͲ
 ͶǡͲͲͲ
 ͳͲǡͲͲͲ ͳͻǡͲͲͲ
‘—•–‘’ƒ”–‡”•
 ͳͲǡͲͲͲ
 ͳʹǡͲͲͲ ʹʹǡͲͲͲ ͶʹǡͲͲͲ
‘‘”‘ϐ‹– 24,600
418 Lesson 7 Ȉ EP-TL

Permissible Remuneration to Partners

ͻͲΨ‘ˆϐ‹”•–•Ǥ͵ǡͲͲǡͲͲͲ‘ˆ‘‘Ǧ’”‘ϐ‹–‘”•ǤͳǡͷͲǡͲͲͲ™Š‹…Š‡˜‡”‹•‘”‡ǡ‹•ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ‡”‡–Š‡
’‡”‹••‹„Ž‡”‡—‡”ƒ–‹‘…‘‡•–‘•ǤͳǡͷͲǡͲͲͲǡ„—–ƒ•–Š‡’ƒ”–‡”•Šƒ˜‡…Žƒ‹‡†•ǤͶͳǡͲͲͲ‘Ž›ǡŠ‡…‡–Š‡
‡–‹”‡ƒ‘—–™‹ŽŽ„‡ƒŽŽ‘™‡†Ǥ
‘’—–ƒ–‹‘‘ˆ–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”

‘‘”‘ϐ‹– 24,600
‡••ǣƒŽƒ”›–‘ƒ”–‡”• ͳͻǡͲͲͲ
‘—•–‘ƒ”–‡”• ʹʹǡͲͲͲ ȋͶͳǡͲͲͲȌ
‘••‘ˆ–Š‡ ‹” ȋͳ͸ǡͶͲͲȌ
Noteǣ‘••‘ˆ–Š‡ϐ‹”™‹ŽŽ„‡…ƒ””‹‡†ˆ‘”™ƒ”†„›–Š‡ϐ‹”–‘–Š‡‡š–›‡ƒ”ȋ•ȌǤ

Illustration 9
ǡƒ†ƒ”‡’ƒ”–‡”••Šƒ”‹‰’”‘ϐ‹–•ƒ†Ž‘••‡•‹–Š‡”ƒ–‹‘‘ˆʹǣͳǣͳ”‡•’‡…–‹˜‡Ž›ǤŠ‡‹”•—ƒ”‹•‡†”‘ϐ‹–
ƒ†‘••Ȁ…ˆ‘”–Š‡›‡ƒ”‡†‹‰͵ͳ•–ƒ”…ŠǡʹͲʹʹ‹•ƒ’’‡†‡†„‡Ž‘™ǣ
Particulars Amount Rs. Particulars Amount Rs.
ˆϐ‹…‡•ƒŽƒ”‹‡• ͷǡ͸ͺͲ
”‘••”‘ϐ‹– ͸Ͳǡͷ͹Ͳ
‡Ž‡’Š‘‡ƒ†‡Ž‡‰”ƒ ʹǡͲͲͲ ‡–”‡…‡‹˜‡† ͸ǡͲͲͲ
–‡”‡•–‘Ž‘ƒˆ”‘ ʹǡͲͲͲ –‡”‡•–‘•‡…—”‹–‹‡• ͶǡͲͲͲ
‘…ƒŽ–ƒš‡•ȋŽ‡–‘—–’”‘’‡”–›Ȍ ͳǡͲͲͲ
ƒŽƒ”›–‘ ͵ǡͲͲͲ
‘‹••‹‘–‘’ƒ”–‡”•
 ͶǡͲͲͲ
 ͷǡͲͲͲ
 ͸ǡͲͲͲ
‘ŽŽ‡…–‹‘…Šƒ”‰‡•‘ˆ‹–‡”‡•–‘•‡…—”‹–‹‡• ͷͲ
ƒ††‡„–•”‡•‡”˜‡ ͳǡͲͲͲ
‡–”‘ϐ‹––‘’ƒ”–‡”•ǣ
 ʹͲǡͶʹͲ
 ͳͲǡʹͳͲ
 ͳͲǡʹͳͲ
‘–ƒŽ ͹Ͳǡͷ͹Ͳ ‘–ƒŽ ͹Ͳǡͷ͹Ͳ
‘’—–‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ƒ†–ƒšŽ‹ƒ„‹Ž‹–›–Š‡”‡‘Ǥ–‡”‡•–’ƒ‹†–‘
Šƒ•„‡‡…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆʹͲΨ’ǤƒǤ
Solution:
‘’—–ƒ–‹‘‘ˆ‘‘Ǧ”‘ϐ‹–

Particulars Rs. Rs.

‡–…‘‡ƒ•’‡”ƬȀ… ͶͲǡͺͶͲ
Addǣƒ†‹••‹„Ž‡‹–‡•Ǧ
‘…ƒŽ–ƒš‡•ȋ‘Ž‡–‘—–’”‘’‡”–›Ȍ ͳͲͲͲ
ƒŽƒ”›–‘ȋƒ”–‡”Ȍ ͵ͲͲͲ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 419

‘‹••‹‘–‘’ƒ”–‡”• ͳͷǡͲͲͲ
‘ŽŽ‡…–‹‘…Šƒ”‰‡• ͷͲ
ƒ††‡„–•”‡•‡”˜‡ ͳǡͲͲͲ ʹͲǡͲͷͲ
͸ͲǡͺͻͲ
‡••ǣ–Š‡”…‘‡•Ǧ
‡–”‡…‡‹˜‡† ȋ͸ǡͲͲͲȌ
–‡”‡•–‘•‡…—”‹–‹‡• ȋͶǡͲͲͲȌ ȋͳͲǡͲͲͲȌ
‘‘”‘ϐ‹– ͷͲǡͺͻͲ

ƒš‹—”‡—‡”ƒ–‹‘’ƒ›ƒ„Ž‡–‘’ƒ”–‡”•
‡”‡•ǤͳǡͷͲǡͲͲͲ™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•ƒš‹—”‡—‡”ƒ–‹‘Ǥ—–ƒ•–Š‡’ƒ”–‡”•Šƒ˜‡†”ƒ™‘Ž›•ǤͳͺǡͲͲͲ
„›™ƒ›‘ˆ•ƒŽƒ”›ƒ†…‘‹••‹‘ǡ–Š‡‡–‹”‡ƒ‘—–™‹ŽŽ„‡ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘Ǥ
‘’—–ƒ–‹‘‘ˆ‘–ƒŽ…‘‡‘ˆ–Š‡ ‹”ȏ••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵Ȑ

Particulars Rs. Rs.

‘‘”‘ϐ‹–ǣ ͷͲǡͺͻͲ
Less ǣƒŽƒ”›ƒ†…‘‹••‹‘–‘’ƒ”–‡”• ȋͳͺǡͲͲͲȌ
Ȃƒšƒ„Ž‡—•‹‡••”‘ϐ‹– ͵ʹǡͺͻͲ
Ȃ…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›
‡–”‡…‡‹˜‡† ͸ǡͲͲͲ
Less ǣ—‹…‹’ƒŽ–ƒš‡• ȋͳǡͲͲͲȌ
‡–ƒ†Œ—•–‡†ƒ—ƒŽ˜ƒŽ—‡ȋȌ ͷǡͲͲͲ
Less ǣ‡’ƒ‹”•ȋ͵ͲΨ‘ˆȌ—Ȁ•ʹͶ ȋͳǡͷͲͲȌ
…‘‡ˆ”‘‘—•‡”‘’‡”–› ͵ͷͲͲ
Ȃ…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǣ
–‡”‡•–‘‡…—”‹–‹‡• ͶǡͲͲͲ
‡••ǣ‘ŽŽ‡…–‹‘…Šƒ”‰‡• ȋͷͲȌ ͵ǡͻͷͲ

”‘••‘–ƒŽ…‘‡ȋ͵ʹǡͺͻͲΪ͵ǡͷͲͲΪ͵ǡͻͷͲȌ ͶͲǡ͵ͶͲ

Š‡ϐ‹”™‹ŽŽŠƒ˜‡–‘’ƒ›–ƒš‘•ǤͶͲǡ͵ͶͲ̷͵ͲΨǡ™Š‹…Š…‘‡•–‘•ǤͳʹǡͳͲʹ’Ž—•Š‡ƒŽ–Šƒ†‡†—…ƒ–‹‘…‡••̷
ͶΨ‘ͳʹǡͳͲʹƒ‹‰–Š‡–‘–ƒŽŽ‹ƒ„‹Ž‹–›ƒ••Ǥͳʹǡͷͺ͸Ǥ

Illustration 10:
‘’—–‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ–Š‡ϐ‹”Ƭ‘Ǥˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵…‘•‹†‡”‹‰–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘
ͳͳͷ ǤŠ‡„—•‹‡••‹…‘‡‘ˆ–Š‡ϐ‹”‹••ǤʹͳǡͲͲǡͷͲͲ„‡ˆ‘”‡†‡†—…–‹‘—†‡”•‡…–‹‘͵ʹƒ†„‡ˆ‘”‡†‡†—…–‹‘
—†‡”•‡…–‹‘͵ͷ•ǤͳͳǡͲͲǡͲͲͲǡ„‡…ƒ—•‡‘ˆ™Š‹…Š†‡’”‡…‹ƒ–‹‘‘ˆ•ǤͶͲǡͲͲͲ…ƒ‘–„‡…Žƒ‹‡†Ǥ‡†—…–‹‘
—†‡”•‡…–‹‘ͺͲ•ǤͳǡͲͲǡͲͲͲǤ‘ƒ–‹‘’ƒ‹†–‘ƒ’‘Ž‹–‹…ƒŽ’ƒ”–›•ǤͺͷǡͲͲͲǤ
Solution:

Particulars Rs.

Ǧ—•‹‡••…‘‡ȋ•ǤʹͳǡͲͲǡͷͲͲŽ‡••ͳͳǡͲͲǡͲͲͲȌ ͳͲǡͲͲǡͷͲͲ
‡••‡†—…–‹‘•
†‡”•‡…–‹‘ͺͲ ͳǡͲͲǡͲͲͲ
420 Lesson 7 Ȉ EP-TL

†‡”•‡…–‹‘ͺͲ

 ͺͷǡͲͲͲ
‡–…‘‡ ͺǡͳͷǡͷͲͲ
ƒš‘•ǤͺǡͳͷǡͷͲͲ̷͵ͲΨ ʹǡͶͶǡ͸ͷͲ
Add ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͻ͹ͺ͸
ƒšŽ‹ƒ„‹Ž‹–› ʹǡͷͶǡͶ͵͸
†Œ—•–‡†–‘–ƒŽ‹…‘‡ƒ†ƒŽ–‡”ƒ–‡‹‹—–ƒšˆ‘”–Š‡’—”’‘•‡‘ˆ•‡…–‹‘ͳͳͷ 
‡–…‘‡ ͺǡͳͷǡͷͲͲ
††ǣ†‡”•‡…–‹‘ͺͲ ͳǡͲͲǡͲͲͲ
††ǣ—†‡”•‡…–‹‘͵ͷȋ•ǤͳͳǡͲͲǡͲͲͲŽ‡••ͶͲǡͲͲͲȌ ͳͲǡ͸ͲǡͲͲͲ
†Œ—•–‡†–‘–ƒŽ‹…‘‡ ͳͻǡ͹ͷǡͷͲͲ
‘•Ǥͳͻǡ͹ͷǡͷͲͲ̷ͳͺǤͷΨ ͵ǡ͸ͷǡͶ͸͹
Addǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͳͶǡ͸ͳͺ
Ž‹ƒ„‹Ž‹–› ͵ǡͺͲǡͲͺͷ
Ž‹ƒ„‹Ž‹–›ȋ”‘—†‘ˆˆȌ ͵ǡͺͲǡͲͻͲ
ƒš’ƒ›ƒ„Ž‡‹••Ǥ͵ǡͺͲǡͲͻͲ„‡‹‰Š‹‰Š‡”‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›•ǤʹǡͷͶǡͶ͵͸ƒ†•Ǥ͵ǡͺͲǡͲͻͲǤ

Illustration 11:
Income & Expenditure A/c of Lawyers & Co. for the year ending March 31, 2022

Particulars Amount (Rs.) Particulars Amount (Rs.)

‘š’‡•‡• ͳǡͷͲǡͲͲͲ ›”‘ˆ‡••‹‘ƒŽ‡…‡‹’–• ͵ǡͺͲǡͲͲͲ
‘‡’”‡…‹ƒ–‹‘ ʹͲǡͲͲͲ ›–Š‡”ˆ‡‡• ͻͲǡͲͲͲ
‘‡—‡”ƒ–‹‘–‘’ƒ”–‡”• ͳǡͷͲǡͲͲͲ
–‡”‡•–‘ƒ’‹–ƒŽ–‘’ƒ”–‡”•̷ ʹͲ’‡”…‡– ʹͲǡͲͲͲ
‘‡–”‘ϐ‹– ͳǡ͵ͲǡͲͲͲ
Total 4,70,000 Total 4,70,000
Other Information:
ͳǤ š’‡•‡•‹…Ž—†‡•ǤͳͺǡͲͲͲƒ†•ǤͳʹǡͲͲͲ’ƒ‹†‹…ƒ•Šƒ•„”‘‡”ƒ‰‡–‘ƒ•‹‰Ž‡’ƒ”–›‘ƒ•‹‰Ž‡†ƒ›Ǥ
ʹǤ ‡’”‡…‹ƒ–‹‘…ƒŽ…—Žƒ–‡†ƒ•’‡”•‡…–‹‘͵ʹ‹••ǤͶͲǡͲͲͲǤ
Compute the Total Income of the Firm.
Solution:

Computation of Total Income of Lawyers & Co. for A. Y. 2022-23

Particulars Amount Rs.

‡–’”‘ϐ‹–ƒ•’‡”’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—– ͳǡ͵ͲǡͲͲͲ
††ǣš’‡•‡•‘–ƒŽŽ‘™ƒ„Ž‡
‡…–‹‘ͶͲȋ͵ȌǦƒ•Š’ƒ›‡–•–‘ƒ„”‘‡”‡š…‡‡†‹‰•ǤͳͲǡͲͲͲȋ‘–‡ͳȌ ͵ͲǡͲͲͲ
‡…–‹‘ ͶͲȋ„ȌǦš…‡•• ‹–‡”‡•– ‘ …ƒ’‹–ƒŽ –‘ ’ƒ”–‡”• ʹͲΨǦͳʹΨǡ‹Ǥ‡Ǥǡ ͺǡͲͲͲ ͵ͺǡͲͲͲ
ȋʹͲͲͲͲȗͺȀʹͲȌȋ‘–‡ʹȌ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 421

Add ǣ‡—‡”ƒ–‹‘–‘’ƒ”–‡”•†‡„‹–‡†–‘’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—– ͳǡͷͲǡͲͲͲ

Less ǣ‡’”‡…‹ƒ–‹‘—Ȁ•͵ʹȋ•ǤͶͲǡͲͲͲǦ•ǤʹͲǡͲͲͲ†‡„‹–‡†‹’”‘ϐ‹–ƒ†Ž‘•• ȋʹͲǡͲͲͲȌ
ƒ……‘—–Ȍ
‘‘’”‘ϐ‹–ȋ‘–‡͵Ȍ ʹǡͻͺǡͲͲͲ
ƒš‹—’‡”‹••‹„Ž‡”‡—‡”ƒ–‹‘ȋŠ‹‰Š‡”‘ˆ–Š‡–™‘ǣ ȋ‹Ǥ‡ǤǡͻͲ’‡”…‡–‘ˆ ʹǡ͸ͺǡʹͲͲ
•ǤʹǡͻͺǡͲͲͲ‘”•ǤͳǡͷͲǡͲͲͲȌ
…–—ƒŽȋ—„Œ‡…––‘ƒ…–—ƒŽȌ ͳǡͷͲǡͲͲͲ ȋͳǡͷͲǡͲͲͲȌ
—•‹‡••…‘‡‘ˆ–Š‡ ‹” ͳǡͶͺǡͲͲͲ
ƒš‹ƒ„‹Ž‹–›ȋ͵ͲΨ‘ˆͳǡͶͺǡͲͲͲȌ ͶͶǡͶͲͲ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͳǡ͹͹͸
Total Tax Liability 46,176
Notes :
ͳǤ •’‡”•‡…–‹‘ͶͲȋ͵Ȍ‘ˆ–Š‡…–ǡ‹ˆ–Š‡ƒ‰‰”‡‰ƒ–‡’ƒ›‡–ƒ†‡ȋ‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡
…Š‡“—‡Ȁ†”ƒˆ–Ȍ–‘–Š‡•ƒ‡’‡”•‘†—”‹‰ƒ†ƒ›‡š…‡‡†••ǤͳͲǡͲͲͲȀǦ–Š‡‡–‹”‡ƒ‘—–‘ˆ•—…Š’ƒ›‡–
‹•†‹•ƒŽŽ‘™‡†Ǥ
ʹǤ •’‡”•‡…–‹‘ͶͲȋ„Ȍ‘ˆ–Š‡…–ǡ‹ˆ–Š‡‹–‡”‡•–’ƒ›ƒ„Ž‡–‘–Š‡’ƒ”–‡”•‡š…‡‡†••‹’Ž‡‹–‡”‡•–‘ˆͳʹΨ
’‡”ƒ—ǡ–Š‡‡š…‡••ƒ‘—–‹•‘–†‡†—…–‹„Ž‡Ǥ
͵Ǥ Š‡”‡—‡”ƒ–‹‘’ƒ‹†–‘–Š‡™‘”‹‰’ƒ”–‡”•…ƒ‘–‡š…‡‡†–Š‡’‡”‹••‹„Ž‡Ž‹‹–••’‡…‹ϐ‹‡†—†‡”
•‡…–‹‘ͶͲȋ„Ȍ‘ˆ–Š‡…–Ǥ

Illustration 12:
”Ǥǡ…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ‘’‡”ƒ–‹‰ƒ™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–›ˆ‘”•–‘”ƒ‰‡‘ˆ•—‰ƒ”ǡŠƒ•ƒ–‘–ƒŽ‹…‘‡‘ˆ•Ǥ
ͺͲŽƒŠǤ…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡ǡŠ‡Šƒ†…Žƒ‹‡††‡†—…–‹‘—†‡”•‡…–‹‘͵ͷ–‘–Š‡–—‡‘ˆ•Ǥ͹ͲŽƒŠ
‘‹˜‡•–‡–‹„—‹Ž†‹‰ȋ‘ͳǤͶǤʹͲʹͳȌˆ‘”‘’‡”ƒ–‹‰–Š‡™ƒ”‡Š‘—•‹‰ˆƒ…‹Ž‹–›ˆ‘”•–‘”ƒ‰‡‘ˆ•—‰ƒ”Ǥ‘’—–‡Š‹•
–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”ǤǤʹͲʹʹǦʹ͵ǤŠ‘™–Š‡…ƒŽ…—Žƒ–‹‘•‘ˆŽ–‡”ƒ–‡‹‹—ƒšƒŽ•‘Ǥ
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Solution:
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Computation of Tax payable by Mr. X for AY 2022-23
Computation of Normal Tax

Particulars Amount (Rs. in lakh)

ƒšŽ‹ƒ„‹Ž‹–›—†‡”–Š‡‘”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ ʹʹǤͳʹͷ
††ǣ—”…Šƒ”‰‡̷ͳͲΨ‘ˆ‘–ƒŽ‹…‘‡εͷͲŽƒ…• ʹǤʹͳʹͷ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ‘ˆʹͶǤ͵͵͹ͷ ͲǤͻ͹͵ͷ
Total Tax Liability 25.311
422 Lesson 7 Ȉ EP-TL

Computation of Alternate Minimum Tax

Particulars Amount (Rs. in lakh)

†Œ—•–‡†‘–ƒŽ…‘‡ ͺͲǤͲͲ
††ǣ‡†—…–‹‘—†‡”•‡…–‹‘͵ͷ ͹ͲǤͲͲ
‡••ǣ‡’”‡…‹ƒ–‹‘—†‡”•‡…–‹‘͵ʹ ȋ͹ǤͲͲȌ
†Œ—•–‡†‘–ƒŽ…‘‡ ͳͶ͵ǤͲͲ
̷ͳͺǤͷΨ ʹ͸ǤͶ͸
—”…Šƒ”‰‡̷ͳͷΨȋ•‹…‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡ε•ǤͳͲͲŽƒŠȌ ͵Ǥͻ͹
ƒš ͵ͲǤͶ͵
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͳǤʹͳ͹
Total tax Liability 31.647

‹…‡–Š‡”‡‰—Žƒ”‹…‘‡–ƒš’ƒ›ƒ„Ž‡‹•Ž‡••–Šƒ–Š‡’ƒ›ƒ„Ž‡ǡ–Š‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡‘ˆ•ǤͳͶ͵ŽƒŠ•
•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ”Ǥƒ†–ƒš‹•’ƒ›ƒ„Ž‡̷ͳͺǤͷΨ–Š‡”‡‘ˆ’Ž—••—”…Šƒ”‰‡̷ͳͷΨƒ†
…‡••̷ͶΨǤŠ‡”‡ˆ‘”‡ǡ–ƒšŽ‹ƒ„‹Ž‹–›‹•͵ͳǤ͸Ͷ͹ŽƒŠ•Ǥ
‘™‡˜‡”ǡ”Ǥ™‘—Ž†„‡‡Ž‹‰‹„Ž‡ˆ‘”…”‡†‹–‹ͳͷ•—„•‡“—‡–›‡ƒ”•–‘–Š‡‡š–‡–‘ˆ†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡
ƒ†‘”ƒŽƒšǡ‹Ǥ‡Ǥ•Ǥǡ͸Ǥ͵͵͸ŽƒŠ•Ǥ
’–‹‘ʹǣ••‡••‡‡‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ

Computation of Tax payable by Mr. X for AY 2022-23 Computation of Normal Tax

Particulars Amount (Rs. in lakh)

ƒšŽ‹ƒ„‹Ž‹–›—†‡”–Š‡‘”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ ʹͳǤ͵͹ͷ
††ǣ—”…Šƒ”‰‡̷ͳͲΨ‘ˆ‘–ƒŽ‹…‘‡εͷͲŽƒ…• ʹǤͳ͵͹ͷ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ‘ˆʹ͵Ǥͷͳʹͷ ͲǤͻͶͲͷ
Total Tax Liability 24.453

Note:Ž–‡”ƒ–‡‹‹—ƒš‹•‘–ƒ’’Ž‹…ƒ„Ž‡‹ˆƒ••‡••‡‡…‘˜‡”‡†—Ȁ•ͳͳͷ

Illustration 13:
”ǤǡͶʹ›‡ƒ”•ǡƒ†”ǤǡͷͲ›‡ƒ”•ǡƒ”‡‡“—ƒŽ’ƒ”–‡”•‹ƒ’ƒ”–‡”•Š‹’ϐ‹”ƒ†‘Ǥ‡‰ƒ‰‡†‹ˆ—”‹–—”‡
„—•‹‡••Ǥ ”‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‘ˆ–Š‡ϐ‹”…‘’—–‡‡–‹…‘‡ƒ†–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ–Š‡ϐ‹”ƒ•™‡ŽŽƒ•
–Š‡’ƒ”–‡”ǯ•ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ
”‘ϐ‹–ƒ†‘••……‘—–
For the year ending March 31, 2022

Particulars Amount (Rs.) Particulars Amount (Rs.)

‘•–‘ˆ‰‘‘†••‘Ž† ͷǡͳͲǡͲͲͲ ƒŽ‡• ͳǡͻͲǡͲͲͲͲ

ƒŽƒ”›–‘•–ƒˆˆ ͸ǡͲͲǡͲͲͲ ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹ ͳǡͲͲǡͲͲͲ
‡’”‡…‹ƒ–‹‘ ͳǡʹͲǡͲͲͲ ‘––‡”›’”‹œ‡ ͵ͷǡͲͲͲ
‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡ ͶͲǡͲͲͲ –Š‡”„—•‹‡••”‡…‡‹’–• ͳǡͶ͹ǡͲͲͲ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 423

‡—‡”ƒ–‹‘ –‘ ’ƒ”–‡”•  ʹǡͲͲǡͲͲͲ

ͳͶͲͲͲͲ
͸ͲͲͲͲ
–Š‡”š’‡•‡• ʹǡͳͲǡͲͲͲ
–‡”‡•–‘…ƒ’‹–ƒŽ̷ʹͲΨ
Ͷ͵ͲͲͲ
͸ͲͲͲͲ ͳͲǡ͵ͲͲͲ
”‘˜‹•‹‘ˆ‘”„ƒ††‡„–• ͳͲǡͲͲͲ
‡–’”‘ϐ‹– ͵ǡͺͻǡͲͲͲ
‘–ƒŽ ʹǡͳͺǡʹͲͲͲ ‘–ƒŽ ʹǡͳͺǡʹͲͲͲ

Other Information
1) Remuneration and interest to partners is paid as per partnership deed
2) Depreciation as per income tax rules Rs. 100000
3) Firm paid bonus to employees Rs. 20,400 relating to last year on 15-12-2020.
4) Other expenses include donation to approved charitable institution for the purpose of family planning Rs.
45,000.
5) Fees for technical services are paid out of India wherein TDS rules apply. Tax has been deducted at source
on time on 31 July, 2021 but it is deposited to Government 21 days late on 28 August, 2021.
ͼȌ Š‡ϔ‹”…‘’Ž‹‡•™‹–Š…‘†‹–‹‘•‘ˆ•‡…–‹‘ͷ;ͺƒ†ͺͶȋ„Ȍ
7) Income and investments of Mr. A and Mr. B are as follows:

Particulars Mr. A (Rs.) ”Ǥȋ•ǤȌ

–‡”‡•–‘
‘˜‡”‡–‡…—”‹–‹‡• ͸ͲǡͲͲͲ ͷ͸ǡͲͲͲ
–‡”‡•–‘ƒ‡’‘•‹–ȋ‰”‘••Ȍ ͶǡͷͲͲ ͷǡͲͲͲ
‹˜‹†‡†ˆ”‘†‹ƒ‘’ƒ› ʹͲǡͲͲͲ ʹʹǡͲͲͲ
‘–”‹„—–‹‘–‘ ͳǡͲͲǡͲͲͲ ͳǡͳͲǡͲͲͲ
–‡”‡•–‘Ž‹•–‡†‡„‡–—”‡•ȋ‡–Ȍ ͸ǡ͵ͲͲ ͸ǡ͵ͲͲ
8) Mr. A received gift of Rs. 80,000 from a friend.
9) Assessee has not opted for section 115BAC

Solution:
‘’—–ƒ–‹‘‘ˆ‘–ƒŽ…‘‡‘ˆƒ†‘Ǥˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

ƒŽ…—Žƒ–‹‘‘ˆ—•‹‡••…‘‡

Particulars Amount (Rs.)

‡–”‘ϐ‹–ƒ•’‡”ƬȀ ͵ǡͺͻǡͲͲͲ
Addǣƒ†‹••‹„Ž‡š’‡•‡•
š…‡••†‡’”‡…‹ƒ–‹‘ȏͳʹͲͲͲͲǦͳͲͲͲͲͲȐ ʹͲǡͲͲͲ
‡—‡”ƒ–‹‘–‘’ƒ”–‡”• ʹǡͲͲǡͲͲͲ
–‡”‡•–‘…ƒ’‹–ƒŽ‹‡š…‡••‘ˆͳʹΨ’ǤƒǤ
424 Lesson 7 Ȉ EP-TL

ǣͶ͵ͲͲͲȗͺȀʹͲαͳ͹ʹͲͲ
ǣ͸ͲͲͲͲȗͺȀʹͲαʹͶͲͲͲ ͶͳǡʹͲͲ
”‘˜‹•‹‘ˆ‘”„ƒ††‡„–• ͳͲǡͲͲͲ
‘ƒ–‹‘• ͶͷǡͲͲͲ
Lessǣ†‹••‹„Ž‡š’‡•‡•
‘—•–‘‡’Ž‘›‡‡• ȋʹͲǡͶͲͲȌ
Lessǣ…‘‡–ƒšƒ„Ž‡—†‡”Š‡ƒ†…ƒ’‹–ƒŽ‰ƒ‹ƒ†‘–Š‡”•‘—”…‡•

ȋͳǡͲͲǡͲͲͲȌ
‘––‡”›’”‹œ‡ ȋ͵ͷǡͲͲͲȌ
‘‘’”‘ϐ‹– ͷǡͶͻǡͺͲͲ
Lessǣ‡—‡”ƒ–‹‘–‘’ƒ”–‡”•
 ‹”•–͵ǡͲͲǡͲͲͲ‘ˆ„‘‘’”‘ϐ‹–̷ͻͲΨ αʹǡ͹ͲǡͲͲͲ
ƒŽƒ…‡ʹǡ͵ͶǡͺͲͲ̷͸ͲΨ αͳǡͶͲǡͺͺͲ
ͶǡͳͲǡͺͺͲ‘”•ǤʹǡͲͲǡͲͲͲ™Š‹…Š‡˜‡”‹•Ž‡•• ȋʹǡͲͲǡͲͲͲȌ
—•‹‡••…‘‡ ͵ǡͶͻǡͺͲͲ
…‘‡—†‡”–Š‡Š‡ƒ†…ƒ’‹–ƒŽ‰ƒ‹ȏ
Ȑ ͳǡͲͲǡͲͲͲ
…‘‡ˆ”‘‘–Š‡”•‘—”…‡•
‘––‡”›’”‹œ‡͵ͷǡͲͲͲȗͳͲͲȀ͹Ͳ ͷͲǡͲͲͲ

”‘••–‘–ƒŽ‹…‘‡ ͶǡͻͻǡͺͲͲ
‡••ǣ‡†—…–‹‘—Ȁ•ͺͲ
ͺͲ
ȏͳͲͲΨ‘ˆͶͷǡͲͲͲ‘”ͳͲΨ‘ˆȓͶǡͻͻǡͺͲͲȂͳǡͲͲǡͲͲͲȔȐ ȋ͵ͻǡͻͺͲȌ
Taxable Income 4,59,820

Šƒ”‡‘ˆƒ†‹–Š‡‹…‘‡‘ˆ–Š‡ϐ‹”•ǤʹǡʹͻǡͻͳͲȋͶǡͷͻǡͺʹͲȀʹȌ
‘’—–ƒ–‹‘‘ˆƒš‘‘–ƒŽ…‘‡‘ˆƒ†‘Ǥˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

ƒš‘™‹‹‰ˆ”‘Ž‘––‡”‹‡•ȋ͵ͲΨ‘ˆ•ǤͷͲǡͲͲͲȌ ͳͷǡͲͲͲ
ƒš‘Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ȋʹͲΨ‘ˆ•ǤͳǡͲͲǡͲͲͲȌ ʹͲǡͲͲͲ
ƒŽƒ…‡‘ˆ‘–ƒŽ…‘‡͵ǡͲͻǡͺʹͲ̷͵ͲΨ ͻʹǡͻͶ͸
‘–ƒŽ–ƒš ͳǡʹ͹ǡͻͶ͸
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͷǡͳͳͺ
Total liability 1,33,064

•Ǥͳǡ͵͵ǡͲ͸Ͳȋ”‘—†‘ˆˆǡ•—„Œ‡…––‘•‡–‘ˆˆ‘ˆˆ‘”™‹‹‰ˆ”‘Ž‘––‡”‹‡•Ȍ

Computation of Taxable Income of partners for the Assessment Year 2022-23

Particulars A (Rs.) ȋ•ǤȌ

—•‹‡••ƒŽƒ”›
‡—‡”ƒ–‹‘ ͳǡͶͲǡͲͲͲ ͸ͲǡͲͲͲ
–‡”‡•–‘…ƒ’‹–ƒŽ ʹͷǡͺͲͲ ͵͸ǡͲͲͲ
”‘ϐ‹–•Šƒ”‡‹ϐ‹” š‡’– š‡’–
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 425

…‘‡ˆ”‘‘–Š‡”•‘—”…‡•
–‡”‡•–‘
‘˜‡”‡–•‡…—”‹–‹‡• ͸ͲǡͲͲͲ ͷ͸ǡͲͲͲ
–‡”‡•–‘ƒ†‡’‘•‹–• ͶǡͷͲͲ ͷǡͲͲͲ
‹˜‹†‡†ˆ”‘†‹ƒ…‘’ƒ‹‡• ʹͲǡͲͲͲ ʹʹǡͲͲͲ
–‡”‡•–‘Ž‹•–‡††‡„‡–—”‡•ȋ͸ǡ͵ͲͲȗͳͲͲȌȀͻͲ ͹ǡͲͲͲ ͹ǡͲͲͲ

‹ˆ–ˆ”‘ƒˆ”‹‡† ͺͲǡͲͲͲ Ǧ

”‘••‘–ƒŽ…‘‡ ͵ǡ͵͹ǡͺͲͲ ͳǡͺ͸ǡͲͲͲ
‡†—…–‹‘•—Ȁ•ͺͲǦͺͲ ͳǡͲͲǡͲͲͲ ͳǡͳͲǡͲͲͲ
ƒšƒ„Ž‡…‘‡ ʹǡ͵͹ǡͺͲͲ ͹͸ǡͲͲͲ
ƒšŽ‹ƒ„‹Ž‹–›  
TDS amounting to Rs. 700 to be claimed for refund

Illustration 14:
”ǤȋͶͲ›‡ƒ”•Ȍƒ†”ǤȋͶͻ›‡ƒ”•Ȍƒ”‡‡“—ƒŽ’ƒ”–‡”•‹ƒϐ‹”‘ˆŠƒ”–‡”‡†……‘—–ƒ–•ǡ‘Ǥ’”‹Žͳǡ
ʹͲʹͳ–Š‡›ƒ‡†‡†–Š‡‹”’ƒ”–‡”•Š‹’†‡‡†ƒ†’”‘˜‹†‡†ˆ‘”•ƒŽƒ”›ƒ†‹–‡”‡•––‘’ƒ”–‡”•ƒ•ˆ‘ŽŽ‘™•ǣ

Particulars Amount (Rs.)

ƒŽƒ”›–‘ ʹǡͷͲǡͲͲͲ’ǤƒǤ
ƒŽƒ”›–‘ ͵ǡͲͲǡͲͲͲ’ǤƒǤ
–‡”‡•––‘ƒ† ʹͶΨ’ǤƒǤ
”‘–Š‡‹…‘‡ƒ†‡š’‡†‹–—”‡ƒ……‘—–‘ˆ–Š‡ϐ‹”…‘’—–‡‡–‹…‘‡ƒ†–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ–Š‡ϐ‹”ƒ•™‡ŽŽƒ•
–Š‡’ƒ”–‡”ǯ•ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵Ǥ••‡•‡‡Šƒ•‘–‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷǤ
Income and Expenditure Account
For the year ending March 31, 2022

Particulars Amount (Rs.) Particulars Amount (Rs.)

ˆϐ‹…‡‡š’‡•‡• ʹǡͷͳǡͲͲͲ ‡…‡‹’–•ˆ”‘…Ž‹‡–• ͺǡͶͲǡͲͲͲ
ƒŽƒ”›–‘•–ƒˆˆ ͺʹǡͲͲͲ –‡”‡•–‘†”ƒ™‹‰• ͵ǡͷͲͲ
…‘‡ƒš ͵ͻǡͲͲͲ
ƒŽƒ”›–‘ ʹǡͷͲǡͲͲͲ
ƒŽƒ”›–‘ ͵ǡͲͲǡͲͲͲ
–‡”‡•– ‘ Ž‘ƒ –‘ ‹‘” •‘ ‘ˆ ̷ͳͷΨ ͸ǡͲͲͲ
–‡”‡•–‘…ƒ’‹–ƒŽ̷ʹͶΨ
ͳ͹ͲͲͲ
ͳͻͲͲͲ ͵͸ǡͲͲͲ
‡–’”‘ϐ‹– ͳǡͳͶǡͷͲͲ
Total 843500 Total 8,43,500

–Š‡”ˆ‘”ƒ–‹‘
ͳȌ ˆϐ‹…‡‡š’‡•‡•‹…Ž—†‡‡š’‡•‡•‘–†‡†—…–‹„Ž‡—†‡”•‡…–‹‘•͵Ͳ–‘͵͹•ǤͶͺǡͲͲͲǤ
ʹȌ Š‡ϐ‹”†‘‡•‘–…‘’Ž›™‹–Š…‘†‹–‹‘•‘ˆ•‡…–‹‘ͳͺͶƒ†ͶͲȋ„Ȍ
͵Ȍ Š‡ϐ‹”•‡ŽŽ•ƒ…ƒ’‹–ƒŽƒ••‡–‘—‰—•–ͳͲǡʹͲʹͳƒ†
‘–Š‡•ƒ‡ƒ‘—–•–‘•ǤͷǡͷͲǡͲͲͲǤ
426 Lesson 7 Ȉ EP-TL

ͶȌ Š‡ϐ‹”Šƒ•”‡…‡‹˜‡†ˆ—†•ˆ”‘‹‘”•‘‘ˆƒ•Ž‘ƒǤ
ͷȌ …‘‡ƒ†‹˜‡•–‡–•‘ˆ”Ǥƒ†”Ǥƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

Particulars Mr. A (Rs.) ”Ǥȋ•ǤȌ

˜‡•–‡–‹ͷΨ
‘˜‡”‡–‘ƒ ͳʹǡͲͲǡͲͲͲ ͳͳǡʹͲǡͲͲͲ
–‡”‡•–ˆ”‘‘•–‘ˆϐ‹…‡•ƒ˜‹‰•„ƒ ͶǡͷͲͲ ͷǡͲͲͲ
‡†‹…ƒŽ•—”ƒ…‡”‡‹— ͳʹǡͲͲͲ ͳͷǡͲͲͲ
‹˜‹†‡†ˆ”‘ ‘”‡‹‰‘’ƒ‹‡• ͶͲǡͲͲͲ ͵ͲǡͲͲͲ

Solution:

‘’—–ƒ–‹‘‘ˆ‘–ƒŽ…‘‡‘ˆƒ†‘Ǥˆ‘”–Š‡••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵

ƒŽ…—Žƒ–‹‘‘ˆ—•‹‡••…‘‡

Particulars Rs.
‡–”‘ϐ‹–ƒ•’‡”ƬȀ ͳǡͳͶǡͷͲͲ
Addǣƒ†‹••‹„Ž‡š’‡•‡•
…‘‡ƒš ͵ͻǡͲͲͲ
ƒŽƒ”›–‘ ʹǡͷͲǡͲͲͲ
ƒŽƒ”›–‘ ͵ǡͲͲǡͲͲͲ
–‡”‡•–‘…ƒ’‹–ƒŽ‹‡š…‡••‘ˆͳʹΨ’ǤƒǤ
ǣͳ͹ͲͲͲȗͳʹȀʹͶͺǡͷͲͲ
ǣͳͻͲͲͲȗͳʹȀʹͶͻǡͷͲͲ ͳͺǡͲͲͲ
‘‘’”‘ϐ‹– ͹ǡʹͳǡͷͲͲ
Lessǣ‡—‡”ƒ–‹‘–‘’ƒ”–‡”•ȋ‘–ƒŽŽ‘™‡†ƒ•…‘†‹–‹‘• ‘ˆ•‡…–‹‘ͳͺͶƬͶͲȋ„Ȍƒ”‡‘– 
‡–Ȍ
—•‹‡••…‘‡ ͹ǡʹͳǡͷͲͲ
ƒšƒ„Ž‡…‘‡ ͹ǡʹͳǡͷͲͲ

Šƒ”‡‘ˆƒ†‹–Š‡‹…‘‡‘ˆ–Š‡ϐ‹”•Ǥ͹ǡʹͳǡͷͲͲȀʹα͵ǡ͸Ͳǡ͹ͷͲ
Computation of tax on Total Income for the Assessment Year 2022-23

ƒš‘•Ǥ͹ǡʹͳǡͷͲͲ̷͵ͲΨ ʹǡͳ͸ǡͶͷͲ
††ǣ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͺǡ͸ͷͺ
‘–ƒŽŽ‹ƒ„‹Ž‹–› ʹǡʹͷǡͳͲͺ
‘–ƒŽȋ”‘—†‘ˆˆȌ ʹǡʹͷǡͳͳͲ

Computation of taxable income of partners for the Assessment Year 2022-23

Particulars A 
—•‹‡••ƒŽƒ”›
‡—‡”ƒ–‹‘ Ȃ Ȃ
–‡”‡•–‘…ƒ’‹–ƒŽ Ȃ Ȃ
”‘ϐ‹–•Šƒ”‡‹ϐ‹” š‡’– š‡’–
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 427

…‘‡ˆ”‘‘–Š‡”•‘—”…‡•
–‡”‡•–‘
‘˜‡”‡–‘ƒȋͷΨ‘ˆͳʹǡͲͲǡͲͲͲǢͷΨ‘ˆͳͳǡʹͲǡͲͲͲȌ ͸ͲǡͲͲͲ ͷ͸ǡͲͲͲ
–‡”‡•–‘‘•–‘ˆϐ‹…‡•ƒ˜‹‰•„ƒȋ‡š‡’–—’–‘•Ǥ͵ͷͲͲ—Ȁ•ͳͲȋͳͷȌȋ‹Ȍ ͳǡͲͲͲ ͳǡͷͲͲ
‹˜‹†‡†ˆ”‘ ‘”‡‹‰…‘’ƒ‹‡• ͶͲǡͲͲͲ ͵ͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ ͳǡͲͳǡͲͲͲ ͺ͹ǡͷͲͲ
‡†—…–‹‘•—Ȁ•ͺͲ
ͺͲ‡†‹…Žƒ‹•—”ƒ…‡ ͳʹǡͲͲͲ ͳͷǡͲͲͲ
ƒšƒ„Ž‡…‘‡ ͺͻǡͲͲͲ ͹ʹǡͷͲͲ
ƒšŽ‹ƒ„‹Ž‹–›  

  Ȁ 

Ǯ••‘…‹ƒ–‹‘‘ˆ‡”•‘•ǯŠƒ•‘–„‡‡†‡ϐ‹‡†‹–Š‡…‘‡Ǧ–ƒš…–Ǥ‘™‡˜‡”‹–Š‡…ƒ•‡‘ˆCIT v. Indira
Balkrishna [(1960) 39 ITR 546Ȑ–Š‡—’”‡‡‘—”–Šƒ•†‡ϐ‹‡†‹–ƒ•ǣ
DzAssociation of Personsdz‡ƒ•ƒƒ••‘…‹ƒ–‹‘‹™Š‹…Š–™‘‘”‘”‡’‡”•‘•Œ‘‹‹ˆ‘”ƒ…‘‘’—”’‘•‡‘”
…‘‘ƒ…–‹‘–‘’”‘†—…‡‹…‘‡ǡ’”‘ϐ‹–•‘”‰ƒ‹•Ǥ
ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ƒ›…‘•‹•–‘ˆ‘Ǧ‹†‹˜‹†—ƒŽ•ȋ‘’ƒ‹‡•ǡ ‹”•ǡ ‘‹– ƒ‹Ž‹‡•ȌȏIpoth v. CIT (1968)67
ITR 106 (S.C.)ȐǤ‹‘”…ƒŒ‘‹ƒ‹ˆŠ‹•Žƒ™ˆ—Ž‰—ƒ”†‹ƒ‰‹˜‡•Š‹•…‘•‡–ǤȏMurugesan & Bros. v. CIT (1973) 88
ITR 432 (SC)ȐǤ
’’Ž›‹‰–Š‡”ƒ–‹‘Žƒ‹††‘™„›–Š‡—’”‡‡‘—”–‹–Š‡…ƒ•‡‘ˆG Murugesan and Bros. v. Commissioner of Income-
tax (1973, 88 ITR 432)ǡ–Š‡‡”ƒŽƒ‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆ‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš˜Ǥ
‘‡ŽƒŽƒŽƒ†‡”‹
ǤƒŽƒŽȋͳͻͻͲǡͳͺͶʹͶͺȌ–Šƒ–‹‘”†‡”–‘ƒ…“—‹”‡–Š‡•–ƒ–—•‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǡ–Š‡’‡”•‘•—•–Œ‘‹
‹ƒ…‘‘’—”’‘•‡‘”ƒ…–‹‘ƒ†–Š‡‘„Œ‡…–‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘—•–„‡–‘’”‘†—…‡‹…‘‡Ǥ–‹•‘–‡‘—‰Š–Šƒ–
–Š‡’‡”•‘•”‡…‡‹˜‡–Š‡‹…‘‡Œ‘‹–Ž›Ǥ
‘” –Š‡ ˆ‘”ƒ–‹‘ ‘ˆ ƒ ǡ –Š‡ ƒ••‘…‹ƒ–‹‘ ‡‡† ‘– ‡…‡••ƒ”‹Ž› „‡ ‘ –Š‡ „ƒ•‹• ‘ˆ ƒ …‘–”ƒ…–ǡ …‘•‡– ƒ†
—†‡”•–ƒ†‹‰ƒ›„‡’”‡•—‡†ȏShanmugham & Co. v. CIT(1971) 81 ITR 310 (S.C.)ȐǤ
’’Ž›‹‰–Š‡”ƒ–‹‘Žƒ‹††‘™„›–Š‡—’”‡‡‘—”–‹–Š‡…ƒ•‡‘ˆN.V. Shanmugham & Co. v. Commissioner of Income-
tax (1971, 81 ITR 310) –Š‡ƒŽ…—––ƒ‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆ
‘’ƒŽŠƒ†‡˜Ǥ…‘‡Ǧ–ƒšˆϔ‹…‡”ƒ†‘–Š‡”•
(1977, 109 ITR 820) –Šƒ–ƒƒ••‡••‡–‘ˆ„—•‹‡••‹…‘‡Šƒ•–‘„‡†‘‡‹–Š‡Šƒ†•‘ˆ”‡…‡‹˜‡”•ƒ†‹•—…Šƒ
ƒ••‡••‡–ǡ–Š‡”‡…‡‹˜‡”•ƒ”‡‡˜‡”ƒ••‡••‡†ƒ•‹†‡’‡†‡–‡ƒ”‡”•‘ˆ‹…‘‡ǤŠ‡‹…‘‡‹–Š‡Šƒ†•‘ˆ–Š‡
”‡…‡‹˜‡”‹•ƒ••‡••ƒ„Ž‡‹–Š‡Ž‹‡ƒ‡”ƒ†–‘–Š‡•ƒ‡‡š–‡–ƒ•‹–™‘—Ž†Šƒ˜‡„‡‡ƒ••‡••‡†‘–Š‡”‡ƒŽ‘™‡”•Ǥ
‘™‡˜‡”ǡ …‘Ǧ‘™‡”•ǡ …‘ǦŠ‡‹”• ‘” …‘ǦŽ‡‰ƒ–‡‡• †‘ ‘– …‘•–‹–—–‡ ƒ  ‹ ”‡•’‡…– ‘ˆ –Š‡ ‹…‘‡ ‘ˆ –Š‡ Œ‘‹– ‘”
…‘‘ƒ••‡–„›”‡ƒ•‘‘Ž›‘ˆ–Š‡‹”Œ—”ƒŽ”‡Žƒ–‹‘•Š‹’Ǥ—–‹ˆ–Š‡›™”‹–‡–Š‡•‡Ž˜‡•™‹–Š–Š‡‘„Œ‡…–‹˜‡‘ˆ‡ƒ”‹‰
‹…‘‡–Š‡›…‘•–‹–—–‡ƒˆ‘”ƒ••‡••‡–’—”’‘•‡•ǤȏEstate of Mohamed Rowther v. CIT (1963, 49 ITR 39)ȐǤ
‡…–‹‘ ʹ͸ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …– ’”‘˜‹†‡• –Šƒ– ™Š‡”‡ ’”‘’‡”–› …‘•‹•–‹‰ ‘ˆ „—‹Ž†‹‰ ‘” „—‹Ž†‹‰• ƒ† Žƒ†•
ƒ’’—”–‡ƒ––Š‡”‡–‘‹•‘™‡†„›–™‘‘”‘”‡’‡”•‘•‹†‡ϐ‹‹–‡ƒ†ƒ•…‡”–ƒ‹ƒ„Ž‡•Šƒ”‡•ǡ•—…Š’‡”•‘••ŠƒŽŽ‘–ǡ
‹”‡•’‡…–‘ˆ•—…Š’”‘’‡”–›„‡ƒ••‡••‡†ƒ•ƒǡ„—–‘–Š‡‹””‡•’‡…–‹˜‡•Šƒ”‡‘ˆ‹…‘‡–Š‡”‡ˆ”‘Ǥ
‘”†‡”–‘…‘•–‹–—–‡ƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǡ–Š‡”‡—•–„‡Œ‘‹‹‰–‘‰‡–Š‡”‹ƒ…‘‘’—”’‘•‡‘”‹ƒ…‘‘
ƒ…–‹‘ǡ–Š‡‘„Œ‡…–‘ˆ™Š‹…Š‹•–‘’”‘†—…‡‹…‘‡ǡ’”‘ϐ‹–•ƒ†‰ƒ‹•ǤŠ‘—‰Šƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•‹•‘–‹†‡–‹…ƒŽ™‹–Š
ƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǡ–Š‡›Šƒ˜‡•‘‡•‹‹Žƒ”‹–‹‡•Ǥƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ƒ›…‘•‹•–‘ˆ‘Ǧ‹†‹˜‹†—ƒŽ•
ƒŽ•‘„—–ƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•Šƒ•–‘…‘•‹•–‘Ž›‘ˆŠ—ƒ„‡‹‰•ǤŠ‡™‘”†Ǯ„‘†›ǯ™‘—Ž†”‡“—‹”‡ƒƒ••‘…‹ƒ–‹‘ˆ‘”
•‘‡…‘‘’—”’‘•‡‘”ˆ‘”ƒ…‘‘…ƒ—•‡‘”–Š‡”‡—•–„‡—‹–›—†‡”•‘‡…‘‘–‹‡‘”‘……—’ƒ–‹‘Ǥ
‡”‡…‘ŽŽ‡…–‹‘‘ˆ‹†‹˜‹†—ƒŽ•™‹–Š‘—–ƒ…‘‘–‹‡‘”…‘‘ƒ‹†…ƒ‘–„‡–ƒ‡–‘„‡ƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•
ˆƒ‹Ž‹‰—†‡”‡…–‹‘ʹȋ͵ͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤȏ‡‡CIT v. Deghamwala Estates (1980, 121 ITR 684)ȐǤ
 428 Lesson 7 Ȉ EP-TL

ƒš‹ƒ„‹Ž‹–›‘ˆ••‘…‹ƒ–‹‘‘ˆ‡”•‘•Ȁ‘†›‘ˆ†‹˜‹†—ƒŽ•
‹–Š ‡ˆˆ‡…– ˆ”‘ ƒ••‡••‡– ›‡ƒ” ͳͻͺͻǦͻͲǡ –Š‡ ˆ‘ŽŽ‘™‹‰ ’”‘˜‹•‹‘• ƒ”‡ ƒ’’Ž‹…ƒ„Ž‡ –‘ ƒ••‡••‡‡• ‘–Š‡” –Šƒ
…‘’ƒ‹‡•ǡ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•ƒ†•‘…‹‡–‹‡•”‡‰‹•–‡”‡†—†‡”–Š‡‘…‹‡–‹‡•‡‰‹•–”ƒ–‹‘…–ǡͳͺ͸Ͳ‘”ƒ›Žƒ™
…‘””‡•’‘†‹‰–‘–Šƒ–…–‹ˆ‘”…‡‹ƒ›’ƒ”–‘ˆ†‹ƒǤ
ȋͳȌ –‡”‡•– ’ƒ‹† „› –Š‡  –‘ ƒ ‡„‡” ™‹ŽŽ ‘– „‡ ƒŽŽ‘™‡† ƒ• †‡†—…–‹‘ ˆ”‘ –Š‡ ‹…‘‡ ‘ˆ –Š‡ 
ȏȋ‡…–‹‘ͶͲȋ„ƒȌȐǤ…ƒ•‡•™Š‡”‡‹–‡”‡•–‹•’ƒ‹†„›–Š‡–‘ƒ›‡„‡”ǡ™Š‘Šƒ•ƒŽ•‘’ƒ‹†‹–‡”‡•––‘
–Š‡ǡ–Š‡ƒ‘—–‘ˆ‹–‡”‡•–ǡ–Šƒ–™‹ŽŽ„‡†‹•ƒŽŽ‘™‡†ǡ‹•–Š‡ƒ‘—–‘ˆ‹–‡”‡•–’ƒ‹†„›–Š‡–‘–Š‡
‡„‡”Ž‡••–Š‡ƒ‘—–‘ˆ‹–‡”‡•–’ƒ‹†–‘–Š‡„›–Š‡‡„‡”ȏȋš’Žƒƒ–‹‘ͳ–‘•‡…–‹‘ͶͲȋ„ƒȌȐǤ
ȋʹȌ …ƒ•‡•™Š‡”‡ƒ‹†‹˜‹†—ƒŽ‹•ƒ‡„‡”‘ˆƒ‹ƒ”‡’”‡•‡–ƒ–‹˜‡…ƒ’ƒ…‹–›ǡƒ›‹–‡”‡•–’ƒ‹†„›–Š‡
–‘•—…Š‹†‹˜‹†—ƒŽ‘”„›•—…Š‹†‹˜‹†—ƒŽ–‘–Š‡ǡ‘–Š‡”™‹•‡–Šƒ‹ƒ”‡’”‡•‡–ƒ–‹˜‡…ƒ’ƒ…‹–›™‹ŽŽ
‘–„‡•—„Œ‡…––‘†‹•ƒŽŽ‘™ƒ…‡—†‡”‡š’Žƒƒ–‹‘ʹȋ‹Ȍ–‘‡…–‹‘ͶͲȋ„ƒȌǤ
ȋ͵Ȍ –Š‡…ƒ•‡•‘ˆ‹–‡”‡•–’ƒ‹†„›–‘•—…Š‹†‹˜‹†—ƒŽ‘”„›•—…Š‹†‹˜‹†—ƒŽ–‘–Š‡‹ƒ”‡’”‡•‡–ƒ–‹˜‡
…ƒ’ƒ…‹–›ƒ›‹–‡”‡•–’ƒ‹†„›–Š‡–‘–Š‡’‡”•‘”‡’”‡•‡–‡†„›•—…Š’‡”•‘‘”˜‹…‡˜‡”•ƒǡ™‹ŽŽ‘–„‡
ƒŽŽ‘™‡†—†‡”‡…–‹‘ͶͲȋ„ƒȌȏš’Žƒƒ–‹‘ʹȋ‹‹Ȍ–‘‡…–‹‘ͶͲȋ„ƒȌȐǤ
ȋͶȌ š’Žƒƒ–‹‘ ͵ –‘ ‡…–‹‘ ͶͲȋ„ƒȌ ˆ—”–Š‡” ’”‘˜‹†‡• –Šƒ– ™Š‡”‡ ƒ ‹†‹˜‹†—ƒŽ ‹• ƒ ‡„‡” ‘ˆ –Š‡ 
‘–Š‡”™‹•‡–Šƒƒ•‡„‡”‹ƒ”‡’”‡•‡–ƒ–‹˜‡…ƒ’ƒ…‹–›ǡƒ›‹–‡”‡•–’ƒ‹†„›–Š‡–‘•—…Š‹†‹˜‹†—ƒŽ
™‹ŽŽ‘–„‡†‹•ƒŽŽ‘™‡†‹ˆ–Š‡‹–‡”‡•–‹•”‡…‡‹˜‡†„›Š‹‘„‡ŠƒŽˆ‘ˆƒ›‘–Š‡”’‡”•‘Ǥ
ȋͷȌ ›•ƒŽƒ”›ǡ„‘—•ǡ…‘‹••‹‘‘””‡—‡”ƒ–‹‘ȋ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†Ȍ’ƒ‹†„›–Š‡–‘ƒ‡„‡”
™‹ŽŽ‘–„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘Ǥ

‡…–‹‘ͳ͸͹ƒ‡•–Š‡ˆ‘ŽŽ‘™‹‰’”‘˜‹•‹‘•ƒ•”‡‰ƒ”†•–Š‡‹…‹†‡…‡‘ˆ…Šƒ”‰‡‘ˆ–ƒš‘–Š‡ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•Ǥ
A. Where Shares of Members are Determinate
 –Š‹• …ƒ•‡ǡ –ƒš ‹• …Šƒ”‰‡ƒ„Ž‡ ‘ –Š‡ ‹…‘‡ ‘ˆ –Š‡ ƒ••‘…‹ƒ–‹‘ ‘ˆ ’‡”•‘• ƒ– –Š‡ •ƒ‡ ”ƒ–‡ ƒ• ƒ’’Ž‹…ƒ„Ž‡ –‘ ƒ
‹†‹˜‹†—ƒŽǤ‘™‡˜‡”ǡ™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›‡„‡”‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”
ȋ‡š…Ž—†‹‰Š‹••Šƒ”‡‘ˆ‹…‘‡ˆ”‘–Š‡ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•Ȍ‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘
–ƒš‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ–ƒš™‹ŽŽ„‡…Šƒ”‰‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡‘ˆ
͵ͲΨǡ‹Ǥ‡Ǥǡ–Š‡Š‹‰Š‡•–•Žƒ„ƒ’’Ž‹…ƒ„Ž‡–‘ƒ‹†‹˜‹†—ƒŽǤ
‘”‡•‘ǡ™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›‡„‡”‘ˆ–Š‡ǡ‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”‘”‘–‹–‡š…‡‡†•–Š‡ƒš‹—
ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ–ƒ”ƒ–‡Š‹‰Š‡”–Šƒ–Š‡ƒš‹—
ƒ”‰‹ƒŽ”ƒ–‡ȋ‡Ǥ‰Ǥˆ‘”‡‹‰…‘’ƒ›Ȍǡ–ƒš™‹ŽŽ„‡…Šƒ”‰‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ–•—…ŠŠ‹‰Š‡””ƒ–‡ˆ‘”–Šƒ–
’‘”–‹‘‘ˆ–Š‡‹…‘‡‘ˆ™Š‹…Š”‡Žƒ–‡•–‘–Š‡•Šƒ”‡‘ˆ•—…Š‡„‡”ƒ†–Š‡„ƒŽƒ…‡‘ˆ‹…‘‡ƒ–ƒƒš‹—
ƒ”‰‹ƒŽ”ƒ–‡‘ˆ–ƒšǤ
Noteǣ
ͳǤ ‘‡‹…‘‡•ƒ”‡–ƒšƒ„Ž‡ƒ–•’‡…‹ƒŽ”ƒ–‡•Ǥ
ʹǤ ”‘˜‹•‹‘•‘ˆƒŽ–‡”ƒ–‡‹‹—–ƒš—†‡”•‡…–‹‘ͳͳͷ –‘ͳͳͷ •ŠƒŽŽƒ’’Ž›Ǥ

Illustration 15:
”Ǥǡ”Ǥƒ†ƒˆ‘”‡‹‰…‘’ƒ›–†Ǥƒ”‡‡„‡”•‘ˆƒ•Šƒ”‹‰’”‘ϐ‹–•ƒ†Ž‘••‡•‹–Š‡”ƒ–‹‘‘ˆʹǣʹǣͳǤ
Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡‹••ǤʹǡͷͲǡͲͲͲ‹…Ž—†‹‰Ž‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹••ǤͶͲǡͲͲͲǤƒŽ…—Žƒ–‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ
–Š‡ˆ‘”ʹͲʹʹǦʹ͵Ǥ
Solutionǣ ‘”‡‹‰‘’ƒ›–†Ǥ‹•–ƒšƒ„Ž‡ƒ–ƒ”ƒ–‡Š‹‰Š‡”–Šƒƒš‹—ƒ”‰‹ƒŽ”ƒ–‡ȋ‹Ǥ‡ǤǡͶͲΨȌ

ƒš‘
ͶͲǡͲͲͲƒ–ʹͲΨ ͺǡͲͲͲ
ƒš‘•Šƒ”‡‘ˆ–†ǤȋʹǡͳͲǡͲͲͲȗͶͲΨȗͳȀͷȌ ͳ͸ǡͺͲͲ
ƒŽƒ…‡ ȋʹǡͳͲǡͲͲͲ ͷͲǡͶͲͲ
ȗͶͲΨȗͳȀͷȌ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 429

‘–ƒŽƒš ͹ͷǡʹͲͲ
††‡••ȋͶΨȌ ͵ǡͲͲͺ
ƒšŽ‹ƒ„‹Ž‹–› ͹ͺǡʹͲͺ
‘–ƒŽ ͹ͺǡʹͳͲȋ”‘—†‘ˆˆȌ

ǤWhere the Shares of the Members are Indeterminate

–Š‹•…ƒ•‡ǡ–ƒš™‹ŽŽ„‡…Šƒ”‰‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡ǡ–Šƒ–‹•ǡ–Š‡”ƒ–‡‘ˆ–ƒš
ƒ•™‡ŽŽƒ••—”…Šƒ”‰‡ǡ‹ˆƒ›ǡƒ’’Ž‹…ƒ„Ž‡–‘–Š‡Š‹‰Š‡•–•Žƒ„‘ˆ‹…‘‡‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽƒ••’‡…‹ϐ‹‡†‹–Š‡
‹ƒ…‡…–‘ˆ–Š‡”‡Ž‡˜ƒ–›‡ƒ”Ǥ‘™‡˜‡”ǡ‹ˆ‹…‘‡‘ˆƒ›‡„‡”‘ˆ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ–ƒ”ƒ–‡Š‹‰Š‡”–Šƒ
ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡ǡ–Š‡–Š‡”ƒ–‡‘ˆ–ƒšˆ‘”–Š‡‡–‹”‡‹…‘‡‘ˆ•ŠƒŽŽ„‡•—…ŠŠ‹‰Š‡””ƒ–‡Ǥ
Š‡ ‹†‹˜‹†—ƒŽ •Šƒ”‡• ‘ˆ –Š‡ ‡„‡”• ‹ –Š‡ ™Š‘Ž‡ ‘” ƒ› ’ƒ”– ‘ˆ –Š‡ ‹…‘‡ ‘ˆ –Š‡  ™‹ŽŽ „‡ †‡‡‡† –‘ „‡
‹†‡–‡”‹ƒ–‡‘”—‘™‹ˆ•—…Š•Šƒ”‡•ƒ”‡‹†‡–‡”‹ƒ–‡‘”—‘™‘–Š‡†ƒ–‡‘ˆˆ‘”ƒ–‹‘‘ˆ–Š‡ǡ‘”ƒ–
ƒ›–‹‡–Š‡”‡ƒˆ–‡”Ǥ
‡–Š‘†‘ˆ‘’—–‹‰Šƒ”‡‘ˆƒ‡„‡”‘ˆ••‘…‹ƒ–‹‘‘ˆ‡”•‘•Ȁ‘†›‘ˆ†‹˜‹†—ƒŽ•ȏ‡…–‹‘͸͹Ȑ
‡…–‹‘͸͹•‡‡•–‘’”‘˜‹†‡ˆ‘”–Š‡‡–Š‘†‘ˆ…‘’—–‹‰ƒ‡„‡”ǯ••Šƒ”‡‹–Š‡‹…‘‡‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ
’‡”•‘• ‘” ƒ „‘†› ‘ˆ ‹†‹˜‹†—ƒŽ•ǡ ™Š‡”‡‹ –Š‡ •Šƒ”‡• ‘ˆ –Š‡ ‡„‡”• ƒ”‡ †‡–‡”‹ƒ–‡ǡ ‹ –Š‡ •ƒ‡ ƒ‡” ƒ•
’”‘˜‹†‡†ˆ‘”‹—„Ǧ•‡…–‹‘•ȋͳȌ–‘ȋ͵Ȍ‘ˆ‡…–‹‘͸͹ˆ‘”…‘’—–‹‰ƒ’ƒ”–‡”ǯ••Šƒ”‡‹ƒϐ‹”Ǥ
Š‹••‡…–‹‘Žƒ›•†‘™–Š‡ˆ‘ŽŽ‘™‹‰‡–Š‘†•‘ˆ…‘’—–‹‰–Š‡‡„‡”ǯ••Šƒ”‡ǣ
ȋƒȌ ›‹–‡”‡•–ǡ•ƒŽƒ”›ǡ„‘—•ǡ…‘‹••‹‘‘””‡—‡”ƒ–‹‘ǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†ǡ’ƒ‹†–‘ƒ›‡„‡”
‹”‡•’‡…–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›ƒ†–Š‡
„ƒŽƒ…‡ƒ•…‡”–ƒ‹‡†ƒ†ƒ’’‘”–‹‘‡†ƒ‘‰–Š‡‡„‡”•‹–Š‡’”‘’‘”–‹‘‹™Š‹…Š–Š‡›ƒ”‡‡–‹–Ž‡†–‘
•Šƒ”‡–Š‡‹…‘‡‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›Ǥ
ȋ„Ȍ Š‡”‡–Š‡ƒ‘—–ƒ’’‘”–‹‘‡†–‘ƒ‡„‡”—†‡”ȋƒȌŠ‡”‡‹ƒ„‘˜‡‹•ƒ’”‘ϐ‹–ǡƒ›‹–‡”‡•–ǡ•ƒŽƒ”›ǡ„‘—•ǡ
…‘‹••‹‘ ‘” ”‡—‡”ƒ–‹‘ ’ƒ‹† –‘ –Š‡ ‡„‡” „› –Š‡  ‹ ”‡•’‡…– ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” •ŠƒŽŽ „‡
ƒ††‡†–‘–Šƒ–ƒ‘—–Ǧ–Š‡”‡•—Ž–•ŠƒŽŽ…‘•–‹–—–‡–Š‡‡„‡”ǯ••Šƒ”‡‹–Š‡‹…‘‡‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”
„‘†›Ǥ
ȋ…ȌŠ‡”‡–Š‡ƒ‘—–ƒ’’‘”–‹‘‡†–‘ƒ‡„‡”—†‡”ȋƒȌ‹•ƒŽ‘••ǡƒ›‹–‡”‡•–ǡ•ƒŽƒ”›ǡ„‘—•ǡ…‘‹••‹‘‘”
”‡—‡”ƒ–‹‘ƒˆ‘”‡•ƒ‹†’ƒ‹†–‘–Š‡‡„‡”„›–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›‹”‡•’‡…–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
•ŠƒŽŽ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•––Šƒ–ƒ‘—–ǡ–Š‡”‡•—Ž–•ŠƒŽŽ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•––Šƒ–ƒ‘—–ǡƒ†–Š‡”‡•—Ž–•ŠƒŽŽ
„‡–”‡ƒ–‡†ƒ•–Š‡‡„‡”ǯ••Šƒ”‡‹–Š‡‹…‘‡‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘”„‘†›Ǥ
Notes:
ȋͳȌ Š‡ •Šƒ”‡ ‘ˆ ‡ƒ…Š ‡„‡” ‘ˆ Ȁ •ŠƒŽŽ „‡ ƒ’’‘”–‹‘‡† —†‡” –Š‡ ˜ƒ”‹‘—• Š‡ƒ†• ‘ˆ ‹…‘‡ ƒ• ‹•
†‡–‡”‹‡†™Š‹Ž‡…‘’—–‹‰–Š‡‹…‘‡‘ˆ–Š‡ȀǤ
ȋʹȌ ‡†—…–‹‘•—†‡”•‡…–‹‘ͺͲ–‘–Š‡‡š–‡–ƒŽŽ‘™‡†–‘Ȁ•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘–Š‡‡„‡”•Ǥ

ƒšƒ–‹‘‘ˆ•Šƒ”‡‘ˆ‹…‘‡‘ˆƒ‡„‡”‘ˆȀ
‡…–‹‘ͺ͸”‡Žƒ–‡•–‘•Šƒ”‡•‘ˆ‡„‡”•‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”ƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•‹–Š‡‹…‘‡‘ˆ–Š‡
ƒ••‘…‹ƒ–‹‘‘”„‘†›ǤŠ‹••‡…–‹‘’”‘˜‹†‡•–Šƒ–‹ˆ–Š‡ƒ••‡••‡‡‹•ƒ‡„‡”‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”ƒ„‘†›‘ˆ
‹†‹˜‹†—ƒŽ•ȋ‘–Š‡”–Šƒƒ…‘’ƒ›‘”ƒ‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‘”ƒ‘…‹‡–›”‡‰‹•–‡”‡†—†‡”–Š‡‘…‹‡–‹‡•‡‰‹•–”ƒ–‹‘
…–ǡͳͺ͸Ͳǡ‘”ƒ›Žƒ™…‘””‡•’‘†‹‰–‘–Šƒ–…–‹ˆ‘”…‡‹ƒ›’ƒ”–‘ˆ†‹ƒȌǡŠ‹••Šƒ”‡‹–Š‡‹…‘‡‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘
‘”„‘†›ǡ…‘’—–‡†‹–Š‡ƒ‡”’”‘˜‹†‡†‹‡…–‹‘͸͹•ŠƒŽŽ‘–„‡Ž‹ƒ„Ž‡–‘–ƒšǤ
—”–Š‡”ǡŠ‡–ƒšƒ„‹Ž‹–›‘ˆ•Šƒ”‡‘ˆ‹…‘‡‘ˆƒ‡„‡”‘ˆȀ†‡’‡†•‘–Š‡”ƒ–‡ƒ–™Š‹…Š‹…‘‡‘ˆ•—…Š
Ȁ‹•–ƒšƒ„Ž‡ǣ
 430 Lesson 7 Ȉ EP-TL

ͳǤ Š‡”‡Ȁ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘‹–•–‘–ƒŽ‹…‘‡ƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡‘”ƒ›Š‹‰Š‡””ƒ–‡ǡ

–Š‡•Šƒ”‡‘ˆ–Š‡‡„‡”•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹Š‹•–‘–ƒŽ‹…‘‡Ǥ
ʹǤ Š‡”‡Ȁ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘‹–•–‘–ƒŽ‹…‘‡ƒ––Š‡”ƒ–‡ƒ’’Ž‹…ƒ„Ž‡–‘‹†‹˜‹†—ƒŽ•ȋ‘”ƒŽ”ƒ–‡Ȍ
ƒ†–ƒš‹•’ƒ‹†ǡ•Šƒ”‡‘ˆ‹…‘‡‘ˆƒ‡„‡”•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•’ƒ”–‘ˆŠ‹•–‘–ƒŽ‹…‘‡ƒ†
”‡„ƒ–‡—†‡”•‡…–‹‘ͺ͸•ŠƒŽŽ„‡…Žƒ‹‡†Ǥ
͵Ǥ Š‡”‡Ȁ‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘‹–•–‘–ƒŽ‹…‘‡ƒ––Š‡”ƒ–‡ƒ’’Ž‹…ƒ„Ž‡–‘‹†‹˜‹†—ƒŽ•ȋ‘”ƒŽ”ƒ–‡Ȍ
ƒ†‘–ƒš‹•…Šƒ”‰‡ƒ„Ž‡ǡ•Šƒ”‡‘ˆ‹…‘‡‘ˆƒ‡„‡”•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•’ƒ”–‘ˆŠ‹•–‘–ƒŽ‹…‘‡
ƒ†‘”‡„ƒ–‡—†‡”•‡…–‹‘ͺ͸•ŠƒŽŽ„‡…Žƒ‹‡†Ǥ

••‡••‡–‹…ƒ•‡‘ˆ‹••‘Ž—–‹‘‘ˆƒ••‘…‹ƒ–‹‘‘ˆ‡”•‘•ȏ‡…–‹‘ͳ͹͹Ȑ
Š‡”‡ƒ›„—•‹‡••‘”’”‘ˆ‡••‹‘…ƒ””‹‡†‘„›ƒŠƒ•„‡‡†‹•…‘–‹—‡†‘”ƒ‹•†‹••‘Ž˜‡†ǡ–Š‡••‡••‹‰
ˆϐ‹…‡”•ŠƒŽŽƒ‡ƒƒ••‡••‡–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ•‹ˆ‘•—…Š†‹•…‘–‹—ƒ…‡‘”†‹••‘Ž—–‹‘Šƒ†
–ƒ‡’Žƒ…‡ǡƒ†ƒŽŽ’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ‹…Ž—†‹‰–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–Š‡Ž‡˜›‘ˆ’‡ƒŽ–›‘”ƒ›‘–Š‡”•—
…Šƒ”‰‡ƒ„Ž‡—†‡”ƒ›’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–•ŠƒŽŽƒ’’Ž›Ǥ
˜‡”› ’‡”•‘ ™Š‘ ™ƒ• ƒ– –Š‡ –‹‡ ‘ˆ •—…Š †‹•…‘–‹—ƒ…‡ ‘” †‹••‘Ž—–‹‘ ƒ ‡„‡” ‘ˆ –Š‡  ƒ† –Š‡ Ž‡‰ƒŽ
”‡’”‡•‡–ƒ–‹˜‡‘ˆƒ›•—…Š’‡”•‘™Š‘‹•†‡…‡ƒ•‡†ǡ•ŠƒŽŽŒ‘‹–Ž›ƒ†•‡˜‡”ƒŽŽ›„‡Ž‹ƒ„Ž‡ˆ‘”–Š‡ƒ‘—–‘ˆ–ƒšǡ’‡ƒŽ–›
‘”‘–Š‡”•—’ƒ›ƒ„Ž‡Ǥ
Š‡”‡•—…Š†‹•…‘–‹—ƒ…‡‘”†‹••‘Ž—–‹‘–ƒ‡•’Žƒ…‡ƒˆ–‡”ƒ›’”‘…‡‡†‹‰‹”‡•’‡…–‘ˆƒƒ••‡••‡–›‡ƒ”Šƒ˜‡
…‘‡…‡†ǡ –Š‡ ’”‘…‡‡†‹‰• ƒ› „‡ …‘–‹—‡† ƒ‰ƒ‹•– –Š‡ ‡„‡”• ˆ”‘ –Š‡ •–ƒ‰‡ ƒ– ™Š‹…Š –Š‡ ’”‘…‡‡†‹‰•
•–‘‘†ƒ––Š‡–‹‡‘ˆ•—…Š†‹•…‘–‹—ƒ…‡‘”†‹••‘Ž—–‹‘Ǥ
 ǧ
‡ƒ‹‰ȏ‡…–‹‘ʹȋͳͲȌȐ
Ǯ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›ǯ‡ƒ•ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›”‡‰‹•–‡”‡†—†‡”–Š‡‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡•…–ǡͳͻͳʹǡ‘”—†‡”
ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‹ƒ›•–ƒ–‡ˆ‘”–Š‡”‡‰‹•–”ƒ–‹‘‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•ǤŠ‡…‘‡‘ˆ–Š‡
…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‹•…‘’—–‡†‹–Š‡•ƒ‡ƒ‡”ƒ•’”‘˜‹†‡†ˆ‘”‘–Š‡”ƒ••‡••‡•Ǥ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‹•
‡–‹–Ž‡†–‘–Š‡†‡†—…–‹‘•ˆ”‘‹–•‰”‘••–‘–ƒŽ‹…‘‡—Ȁ•ͺͲ
ǡͺͲ

ǡͺͲ

ǡͺͲǡͺͲǦǡͺͲ ƒ†ͺͲǤ

 ”‡‰‹‘ƒŽ ”—”ƒŽ „ƒ ȋ–‘ ™Š‹…Š ’”‘˜‹•‹‘• ‘ˆ –Š‡ ‡‰‹‘ƒŽ —”ƒŽ ƒ …–ǡ ͳͻ͹͸ǡ ƒ’’Ž›Ȍ ‹• †‡‡‡† –‘ „‡ ƒ …‘Ǧ
‘’‡”ƒ–‹˜‡•‘…‹‡–›ȏ‹”…—Žƒ”‘Ǥ͵ͳͻ†ƒ–‡†ͳͳǤͳǤͳͻͺʹȐǤ
Computation of Income of Co-operative Societies
Š‡‹…‘‡‘ˆƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‹•…‘’—–‡†‹–Š‡•ƒ‡ƒ‡”ƒ•’”‘˜‹†‡†ˆ‘”‘–Š‡”ƒ••‡••‡‡ǯ•—†‡”–Š‡
…–Ǥ Š‡ ’”‘˜‹•‹‘• —†‡” ˜ƒ”‹‘—• Š‡ƒ†• ‘ˆ ‹…‘‡ǡ …Ž—„„‹‰ ‘ˆ ‹…‘‡•ǡ •‡– ‘ˆˆ ƒ† „”‘—‰Š– ˆ‘”™ƒ”† Ž‘••‡•ǡ
†‡†—…–‹‘•—†‡”•‡…–‹‘ͺͲ•ŠƒŽŽƒ’’Ž›Ǥ
—”–Š‡”ǡ –Š‡ •—„•‹†› ‰‹˜‡ „› –Š‡ ‰‘˜‡”‡– –‘ ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ˆ‘” ‡‡–‹‰ ƒƒ‰‡”‹ƒŽ ‡š’‡•‡• ƒ†
ƒ†‹••‹‘ˆ‡‡…‘ŽŽ‡…–‡†„›–Š‡•‘…‹‡–›‹•–”‡ƒ–‡†ƒ•”‡˜‡—‡”‡…‡‹’–ƒ†Ž‹ƒ„Ž‡–‘–ƒšǤȏLudhiana Central Co- operative
Consumers’ Stores Ltd. v. C.I.T (1980) 122, I.T.R. 942ȐǤŠ‡”‡‹•ǡŠ‘™‡˜‡”†‹ˆˆ‡”‡…‡‘ˆ‘’‹‹‘™‹–Š”‡‰ƒ”†–‘–ƒš
–”‡ƒ–‡–‘ˆǮ•—„•‹†›ǯ”‡…‡‹˜‡†ˆ”‘–Š‡
‘˜‡”‡–Ǥ‹•–‹‰—‹•Š‹‰–Š‡”ƒ–‹‘Žƒ‹††‘™„›–Š‡—Œƒ„Ƭƒ”›ƒƒ
‹‰Š‘—”–‹–Š‡…ƒ•‡‘ˆLudhiana Central Co-operative Consumers’ Stores Ltd.Commissioner of Income-tax (1980,
122 ITR 942)ǡ–Š‡—Œƒ„Ƭƒ”›ƒƒ‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆCommissioner of Income-tax v. Jindal Brothers Rice
Mills (1989, 179 ITR 470) –Šƒ–†‡’”‡…‹ƒ–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‘–Š‡…‘•–‘ˆ–Š‡ƒ…Š‹‡”›‘”’Žƒ–”‡†—…‡†„›–Š‡ƒ‘—–
‘ˆ –Š‡ •—„•‹†› ƒ• ƒ…–—ƒŽ …‘•– •–ƒ†• ”‡†—…‡† „› –Š‡ ’‡”…‡–ƒ‰‡ ƒŽŽ‘™‡† „› –Š‡ •—„•‹†›Ǥ Š‘—‰Š –Š‹• …ƒ•‡ ™ƒ•
ˆ‘ŽŽ‘™‡†„›‹–‹–Š‡…ƒ•‡‘ˆCommissioner of Income-tax v. Janak Steel Tubes (Pvt.) Ltd. (1989, 179 ITR 536) ȋ–Š‡
…ƒ’‹–ƒŽ•—„•‹†›•Š‘—Ž†„‡†‡†—…–‡†ˆ”‘–Š‡˜ƒŽ—‡‘ˆ’Žƒ–ƒ†ƒ…Š‹‡”›Ȍ„—–Šƒ†„‡‡†‹••‡–‡†ˆ”‘„›–Š‡
‘„ƒ›ǡƒ†”ƒ•ƒ†ƒŒƒ•–Šƒ‹‰Š‘—”–•‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ȋ‹Ȍ Srinivas Industries v. Commissioner of Income-tax (1991, 188 ITR 22)ǣŠ‡ƒ†”ƒ•‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡
•—„•‹†›”‡ƒŽŽ›’ƒ”–‘‘–Š‡…Šƒ”ƒ…–‡”‘ˆ…ƒ•Š‰”ƒ–‡š’‡†ƒ„Ž‡ˆ‘”ƒ›’—”’‘•‡Ǧ…‘•‡“—‡–Ž›ǡ–Š‡ƒ‘—–
‘ˆ•—„•‹†›‰”ƒ–‡†…‘—Ž†‘–„‡†‡†—…–‡†ˆ”‘–Š‡…ƒ’‹–ƒŽ…‘•–‘ˆ–Š‡ƒ…Š‹‡”›Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 431

ȋ‹‹Ȍ Commissioner of Income-tax v. Elys Plastics Pvt. Ltd. (1991, 188 ITR 11) –Š‡‘„ƒ›‹‰Š‘—”–Š‡Ž†–Šƒ–
–Š‡•—„•‹†‹‡•™‡”‡‘–†‡†—…–‹„Ž‡‹…‘’—–‹‰–Š‡…‘•–‘ˆ’Žƒ–ƒ†ƒ…Š‹‡”›ˆ‘”’—”’‘•‡•‘ˆƒŽŽ‘™‹‰
†‡’”‡…‹ƒ–‹‘Ǥ
ȋ‹‹‹Ȍ Commissioner of Income-tax v. Ambica Electrolytic Capacitors (P) Ltd. and others (1991, 191 ITR494) –Š‡
ƒŒƒ•–Šƒ‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡•—„•‹†›‘”‹˜‡•–‡–•—„•‹†›‰‹˜‡„›–Š‡
‘˜‡”‡–…ƒ‘–„‡
†‡†—…–‡†ˆ”‘–Š‡ƒ…–—ƒŽ…‘•–ˆ‘”’—”’‘•‡•‘ˆ‹˜‡•–‡–‘”†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡Ǥ

Rates of Income-tax on Co-operative Society

Š‡”ƒ–‡•‘ˆ‹…‘‡Ǧ–ƒšƒ’’Ž‹…ƒ„Ž‡–‘ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹʹǦʹ͵ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

ͳǤŠ‡”‡–Š‡–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†•ǤͳͲǡͲͲͲ ͳͲΨ‘ˆ–‘–ƒŽ‹…‘‡
ʹǤ Š‡”‡ –Š‡ –‘–ƒŽ ‹…‘‡ ‡š…‡‡†• •Ǥ ͳͲǡͲͲͲ „—– •Ǥ ͳǡͲͲͲ ’Ž—• ʹͲΨ ‘ˆ –Š‡ ƒ‘—– „› ™Š‹…Š ‹…‘‡
–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†••ǤʹͲǡͲͲͲǤ ‡š…‡‡†••ǤͳͲǡͲͲͲ
͵ǤŠ‡”‡–Š‡–‘–ƒŽ‹…‘‡‡š…‡‡†••ǤʹͲǡͲͲͲ •Ǥ ͵ǡͲͲͲ ’Ž—• ͵ͲΨ ‘ˆ –Š‡ ƒ‘—– „› ™Š‹…Š ‹…‘‡
‡š…‡‡†••ǤʹͲǡͲͲͲ

Health and Education Cess @ 4%.

Surcharge̷ͳʹΨ•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡‡š…‡‡†••Ǥͳ…”‘”‡
Note ǣ
ͳǤ ‘‡‹…‘‡•ƒ”‡–ƒšƒ„Ž‡ƒ–•’‡…‹ƒŽ”ƒ–‡•Ǥ
ʹǤ ”‘˜‹•‹‘•‘ˆƒŽ–‡”ƒ–‡‹‹—–ƒš—†‡”•‡…–‹‘ͳͳͷ –‘ͳͳͷ •ŠƒŽŽƒ’’Ž›Ǥ

‡†—…–‹‘‹”‡•’‡…–‘ˆ…‘‡‘ˆ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡•ȏ‡…–‹‘ͺͲȐ
‡…–‹‘ͺͲ’”‘˜‹†‡•ˆ‘”…‡”–ƒ‹†‡†—…–‹‘•ˆ”‘–Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆƒ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›ǤŠ‡•‡†‡†—…–‹‘•ƒ”‡ǣ
ȋƒȌ –Š‡…ƒ•‡‘ˆ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›‡‰ƒ‰‡†‹ǣ
ȋ‹Ȍ –Š‡„—•‹‡••‘ˆƒ‹‰‘”’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•–‘‹–•‡„‡”•ǡ‘”
ȋ‹‹Ȍ ƒ…‘––ƒ‰‡‹†—•–”›ǡ‘”
ȋ‹‹‹Ȍ –Š‡ƒ”‡–‹‰‘ˆ–Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‰”‘™„›‹–•‡„‡”•ǡ‘”
ȋ‹˜Ȍ –Š‡’—”…Šƒ•‡‘ˆƒ‰”‹…—Ž–—”ƒŽ‹’Ž‡‡–•ǡ•‡‡†•ǡŽ‹˜‡•–‘…‘”‘–Š‡”ƒ”–‹…Ž‡•‹–‡†‡†ˆ‘”ƒ‰”‹…—Ž–—”‡
ˆ‘”’—”’‘•‡‘ˆ•—’’Ž›‹‰–Š‡–‘‹–•‡„‡”•ǡ‘”
ȋ˜Ȍ –Š‡’”‘…‡••‹‰ǡ™‹–Š‘—––Š‡ƒ‹†‘ˆ’‘™‡”ǡ‘ˆ–Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‘ˆ‹–•‡„‡”•ǡ‘”
ȋ˜‹Ȍ –Š‡…‘ŽŽ‡…–‹˜‡†‹•’‘•ƒŽ‘ˆ–Š‡Žƒ„‘—”‘ˆ‹–•‡„‡”•ǡ‘”
ȋ˜‹‹Ȍ ϐ‹•Š‹‰‘”ƒŽŽ‹‡†ƒ…–‹˜‹–‹‡•ǡ‹Ǥ‡Ǥǡ…ƒ–…Š‹‰ǡ…—”‹‰ǡ’”‘…‡••‹‰ǡ’”‡•‡”˜‹‰ǡ•–‘”‹‰‘”ƒ”‡–‹‰‘ˆϐ‹•Š
‘”–Š‡’—”…Šƒ•‡‘ˆƒ–‡”‹ƒŽ•ƒ†‡“—‹’‡–‹…‘‡…–‹‘–Š‡”‡™‹–Šˆ‘”–Š‡’—”’‘•‡‘ˆ•—’’Ž›‹‰
–Š‡–‘‹–•‡„‡”•ǡ
 –Š‡™Š‘Ž‡‘ˆ–Š‡ƒ‘—–‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••ƒ––”‹„—–ƒ„Ž‡–‘ƒ›‘‡‘”‘”‡‘ˆ•—…Šƒ…–‹˜‹–‹‡•
•ŠƒŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡‰”‘••–‘–ƒŽ‹…‘‡’”‘˜‹†‡†–Šƒ–‹–Š‡…ƒ•‡‘ˆƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ˆƒŽŽ‹‰
—†‡” —„Ǧ…Žƒ—•‡ ȋ˜‹Ȍ ‘” ȋ˜‹‹Ȍǡ –Š‡ ”—Ž‡• ƒ† „›‡ǦŽƒ™• ‘ˆ –Š‡ •‘…‹‡–› ”‡•–”‹…– –Š‡ ˜‘–‹‰ ”‹‰Š–• –‘ –Š‡
ˆ‘ŽŽ‘™‹‰…Žƒ••‡•‘ˆ‹–•‡„‡”•ǣ
ȋ‹Ȍ –Š‡‹†‹˜‹†—ƒŽ•™Š‘…‘–”‹„—–‡–Š‡‹”Žƒ„‘—”‘”…ƒ””›‘–Š‡ϐ‹•Š‹‰‘”ƒŽŽ‹‡†ƒ…–‹˜‹–‹‡•Ǣ
ȋ‹‹Ȍ –Š‡…‘Ǧ‘’‡”ƒ–‹˜‡…”‡†‹–•‘…‹‡–‹‡•™Š‹…Š’”‘˜‹†‡ϐ‹ƒ…‹ƒŽƒ••‹•–ƒ…‡–‘–Š‡•‘…‹‡–›Ǣ
ȋ‹‹‹Ȍ –Š‡–ƒ–‡
‘˜‡”‡–Ǥ
ȋ„Ȍ –Š‡…ƒ•‡‘ˆ’”‹ƒ”›…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‡‰ƒ‰‡†‹•—’’Ž›‹‰‹Žǡ‘‹Ž•‡‡†•ǡˆ”—‹–•ǡ˜‡‰‡–ƒ„Ž‡•”ƒ‹•‡†
‘”‰”‘™„›‹–•‡„‡”•–‘
 432 Lesson 7 Ȉ EP-TL

ȋ‹Ȍ ƒˆ‡†‡”ƒŽ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‡‰ƒ‰‡†‹•—’’Ž›‹‰–Š‡ƒ„‘˜‡‡–‹‘‡†’”‘†—…–•Ǣ‘”
ȋ‹‹Ȍ ƒ
‘˜‡”‡–‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›Ǣ‘”
ȋ‹‹‹Ȍ ƒ
‘˜‡”‡–‘’ƒ›‘”ƒ‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ‡–”ƒŽǡ–ƒ–‡‘”ƒ”‘˜‹…‹ƒŽ
…–ȋ„‡‹‰ƒ…‘’ƒ›‘”…‘”’‘”ƒ–‹‘‡‰ƒ‰‡†‹•—’’Ž›‹‰–Š‡ƒ„‘˜‡‡–‹‘‡†’”‘†—…–•–‘–Š‡
’—„Ž‹…ȌǤ
 –Š‡ ™Š‘Ž‡ ‘ˆ –Š‡ ƒ‘—– ‘ˆ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ‘ˆ •—…Š „—•‹‡•• •ŠƒŽŽ „‡ †‡†—…–‡† ˆ”‘ –Š‡ ‰”‘•• –‘–ƒŽ
‹…‘‡Ǥ
 –Š‡…ƒ•‡‘ˆƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‡‰ƒ‰‡†‹ƒ…–‹˜‹–‹‡•‘–Š‡”–Šƒ–Š‘•‡•’‡…‹ϐ‹‡†‹…Žƒ—•‡•ȋƒȌ‘”ȋ„Ȍ
‡‹–Š‡” ‹†‡’‡†‡–Ž› ‘ˆǡ ‘” ‹ ƒ††‹–‹‘ –‘ǡ ’”‘ϐ‹–• ƒ† ‰ƒ‹• ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ ƒ…–‹˜‹–‹‡• ‡–‹‘‡† ƒ–
…Žƒ—•‡•ȋƒȌƒ†ȋ„Ȍ†‡†—…–‹‘ˆ”‘–Š‡‰”‘••–‘–ƒŽ‹…‘‡™‹ŽŽ„‡ƒŽŽ‘™‡†–‘–Š‡‡š–‡–‘ˆ•ǤͷͲǡͲͲͲǤ
ȋ…Ȍ Š‡”‡•—…Š…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‹•ƒ‘•—‡”•ǯ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›ǡ–Š‡†‡†—…–‹‘•ŠƒŽŽ„‡•ǤͳǡͲͲǡͲͲͲǤ
ȋ†Ȍ –Š‡…ƒ•‡‘ˆ‡˜‡”›…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ–Š‡™Š‘Ž‡‘ˆ–Š‡‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘”†‹˜‹†‡†•†‡”‹˜‡†
ˆ”‘‹–•‹˜‡•–‡–•™‹–Šƒ›‘–Š‡”…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›•ŠƒŽŽ„‡†‡†—…–‡†ˆ”‘–Š‡‰”‘••–‘–ƒŽ‹…‘‡Ǥ
ȋ‡Ȍ –Š‡…ƒ•‡‘ˆ‡˜‡”›…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ–Š‡™Š‘Ž‡‘ˆ–Š‡‹…‘‡†‡”‹˜‡†„›–Š‡•‘…‹‡–›ˆ”‘–Š‡Ž‡––‹‰
‘ˆ‰‘†‘™•‘”™ƒ”‡Š‘—•‡•ˆ‘”•–‘”ƒ‰‡ǡ’”‘…‡••‹‰‘”ˆƒ…‹Ž‹–ƒ–‹‰–Š‡ƒ”‡–‹‰‘ˆ…‘‘†‹–‹‡••ŠƒŽŽ„‡
†‡†—…–‡†ˆ”‘‹–•‰”‘••–‘–ƒŽ‹…‘‡Ǥ
ȋˆȌ –Š‡…ƒ•‡‘ˆ‡˜‡”›…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ‘–„‡‹‰ƒŠ‘—•‹‰•‘…‹‡–›‘”ƒ—”„ƒ…‘•—‡”•ǯ•‘…‹‡–›ǡ‘”ƒ
•‘…‹‡–› …ƒ””›‹‰ ‘ –”ƒ•’‘”– „—•‹‡•• ‘” ƒ •‘…‹‡–› ‡‰ƒ‰‡† ‹ –Š‡ ’‡”ˆ‘”ƒ…‡ ‘ˆ ƒ› ƒ—ˆƒ…–—”‹‰
‘’‡”ƒ–‹‘•™‹–Š–Š‡ƒ‹†‘ˆ’‘™‡”ǡ™Š‡”‡–Š‡‰”‘••–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†•ǤʹͲǡͲͲͲ–Š‡ƒ‘—–‘ˆ
ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘•‡…—”‹–‹‡•‘”ƒ›‹…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›•ŠƒŽŽ„‡†‡†—…–‡†ˆ”‘
–Š‡‰”‘••–‘–ƒŽ‹…‘‡Ǥ

Urban Consumers’ Co-operative Society

 —”„ƒ …‘•—‡”•ǯ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‡ƒ• ƒ •‘…‹‡–› ˆ‘” –Š‡ „‡‡ϐ‹– ‘ˆ …‘•—‡”•ǡ ™‹–Š‹ –Š‡ Ž‹‹–• ‘ˆ ƒ
—‹…‹’ƒŽ…‘”’‘”ƒ–‹‘ǡ—‹…‹’ƒŽ‹–›ǡ‘–‹ϐ‹‡†ƒ”‡ƒ•…‘‹––‡‡ǡ–‘™ƒ”‡ƒǡ‘”…ƒ–‘‡–ȏš’Žƒƒ–‹‘–‘‡…–‹‘
ͺͲȋʹȌȐǤ
Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›‹”‡Žƒ–‹‘–‘ƒ›…‘‘’‡”ƒ–‹˜‡„ƒ‘–Š‡”–Šƒƒ’”‹ƒ”›ƒ‰”‹…—Ž–—”ƒŽ
…”‡†‹–•‘…‹‡–›‘”ƒ’”‹ƒ”›…‘‘’‡”ƒ–‹˜‡ƒ‰”‹…—Ž–—”ƒŽƒ†”—”ƒŽ†‡˜‡Ž‘’‡–„ƒǤ
Other points
Ȉ ‘—–”‡…‡‹˜‡†ˆ‘”Ž‡––‹‰‘ˆ‰‘†‘™•ǡ‹…‹†‡–ƒŽ•‡”˜‹…‡•‘ˆ–ƒ‹‰†‡Ž‹˜‡”›‘ˆ•–‘…ƒ–”ƒ‹ŽǦŠ‡ƒ†ƒ†
–”ƒ•’‘”–‹‰‹––‘‰‘†‘™•™‡”‡ƒŽ•‘”‡†‡”‡†ƒ†ƒ‘—–”‡…‡‹˜‡†™ƒ•†‡•…”‹„‡†ƒ•Ǯ…‘‹••‹‘ǯ™ƒ•
™Š‘ŽŽ›‡š‡’–ǤI.T. v. South Arcot District Co-operative Marketing Society Ltd. (1989) 43 Taxman 328/176
ITR 117 (SC).
Ȉ …‘‡ˆ”‘‰‹‹‰ƒ†’”‡••‹‰‘ˆ…‘––‘‹•‡š‡’–ǤBroach Distt. Co-operative Cotton Sales, Ginning &
Pressing Society Ltd. v. CIT (1989) 177 ITR 418/44 Taxman 439 (SC).
Ȉ Š‡”‡ ƒ••‡••‡‡ǡ ƒ ƒ’‡š …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–›ǡ †‡”‹˜‡† ȋ‹Ȍ ‹–‡”‡•– ‘ …ƒ•Š •‡…—”‹–› ˆ—”‹•Š‡† „› ‹– ˆ‘”
…ƒ””›‹‰‘•—‰ƒ”ƒ‰‡…›„—•‹‡••ǡƒ†ȋ‹‹Ȍ‹–‡”‡•–‘–‡’‘”ƒ”›Ž‘ƒ•‰‹˜‡„›‹–ˆ‘”ϐ‹ƒ…‹‰•—‰ƒ”
„—•‹‡••ǡ™Š‹Ž‡ˆ‘”‡”‹–‡”‡•–™ƒ•‘–‡š‡’–ǡŽƒ––‡”™ƒ•‡š‡’–—†‡”‡…–‹‘ͳͶȋ͵Ȍȋ‹‹‹Ȍ‘ˆ–Š‡ͳͻʹʹ
…–ǡCIT v. U.P. Co-operative Federation Ltd. (1989) 176 ITR 435/43 Taxman 20 (SC).
Ȉ ‘—–‘ˆ•—„•‹†›”‡…‡‹˜‡†„›ƒ••‡••‡‡ˆ”‘ƒ–‹‘ƒŽ‘Ǧ‘’‡”ƒ–‹˜‡‡˜‡Ž‘’‡–‘”’Ǥ–‘™ƒ”†•Ž‘••
‹…—””‡†‘ƒ……‘—–‘ˆ’”‹…‡ϐŽ—…–—ƒ–‹‘“—ƒŽ‹ϐ‹‡•ˆ‘”†‡†—…–‹‘—†‡”‡…–‹‘ͺͳȋͳȌȋ…ȌǦCIT v. Punjab
State Co-operative Supply & Marketing Federation Ltd. (1989) 46 Taxman 156 (Punj. & Har.).
Ȉ ”‘’‘”–‹‘ƒ–‡ ‡š’‡†‹–—”‡ ”‡Žƒ–‹‰ –‘ •—…Š „—•‹‡•• ƒ…–‹˜‹–‹‡• ‘ˆ ƒ••‡••‡‡ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ƒ• ƒ”‡
…‘–‡’Žƒ–‡†„›‡…–‹‘ͺͲȋʹȌ‹•‘––‘„‡†‹•ƒŽŽ‘™‡†ǤBaghapurana Co-operative Marketing Society Ltd.
v. CIT (1989) 178 ITR, 653/44 Taxman 92 (Punj. & Har.).
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 433

Ȉ –Š‡…ƒ•‡•‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡ǡ–Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡ƒ”‡–‡†„›ƒ••‡••‡‡…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›
‡‡†‘–Šƒ˜‡„‡‡’”‘†—…‡†„›ƒ••‡••‡‡ǯ•‡„‡”•ǦCIT v. Punjab State Co-operative Supply & Marketing
Federation Ltd. (1989) 46 Taxman 156 (Punj. & Har.).
Ȉ Š‡‡š’”‡••‹‘Ǯ–Š‡ƒ”‡–‹‰‘ˆ–Š‡ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‘ˆ‹–•‡„‡”•‡ƒ•–Šƒ–ƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡
•Š‘—Ž†„‡‘™‡†„›‹–•‡„‡”•ǡ™Š‡–Š‡”•—’’Ž‹‡†„›–Š‡ȋ–Šƒ–‹•ǡ–Š‡‡„‡”•Ȍ‘”’—”…Šƒ•‡†ˆ”‘–Š‡
ƒ”‡– ‘” ƒ…“—‹”‡† ˆ”‘ ƒ› ‘–Š‡” ’”‘†—…‡”Ǥ C.I.T. v. Haryana State Co-operative Supply & Marketing
Federation Ltd. (1989) 79 CTR (Punj. & Har.) 94.
Ȉ Š‘”–Ǧ–‡” …ƒŽŽ †‡’‘•‹–• ƒ”‡ ‹˜‡•–‡– ™‹–Š‹ –Š‡ ‡ƒ‹‰ ‘ˆ ‡…–‹‘ ͺͲȋʹȌȋ†ȌǤ CIT v. Haryana Co-
operative Sugar Mills Ltd. (1989) 46 Taxman 28 (Punj. & Har.).

Assessment of Co-operative Societies

Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡–Š‡’”‘˜‹•‹‘•™Š‹…Šƒ”‡•’‡…‹ϐ‹…ƒŽŽ›ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡ƒ••‡••‡–‘ˆ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡•Ǥ
(I) Co-operative Housing Society: †‡” ‡…–‹‘ ʹ͹ȋ‹‹‹Ȍǡ ƒ ‡„‡” ‘ˆ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–›ǡ …‘’ƒ› ‘”
‘–Š‡”ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•–‘™Š‘ƒ„—‹Ž†‹‰‘”’ƒ”––Š‡”‡‘ˆ‹•ƒŽŽ‘––‡†‘”Ž‡ƒ•‡†—†‡”ƒŠ‘—•‡„—‹Ž†‹‰
•…Š‡‡‘ˆ–Š‡•‘…‹‡–›ǡ…‘’ƒ›‘”ƒ••‘…‹ƒ–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡‘™‡”‘ˆ–Šƒ–
„—‹Ž†‹‰‘”’ƒ”––Š‡”‡‘ˆǤ
 Žƒ—•‡ȋ‹‹‹ƒȌˆ—”–Š‡”’”‘˜‹†‡•–Šƒ–ƒ’‡”•‘™Š‘‹•ƒŽŽ‘™‡†–‘–ƒ‡‘””‡–ƒ‹’‘••‡••‹‘‘ˆƒ›„—‹Ž†‹‰‘”
’ƒ”––Š‡”‡‘ˆ‹’ƒ”–’‡”ˆ‘”ƒ…‡‘ˆƒ…‘–”ƒ…–‘ˆ–Š‡ƒ–—”‡”‡ˆ‡””‡†–‘‹‡…–‹‘ͷ͵‘ˆ–Š‡”ƒ•ˆ‡”‘ˆ
”‘’‡”–›…–ǡͳͺͺʹ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‘™‡”‘ˆ–Šƒ–„—‹Ž†‹‰‘”’ƒ”––Š‡”‡‘ˆǢƒ†
 •’‡”Žƒ—•‡ȋ‹‹‹„Ȍǡƒ’‡”•‘™Š‘ƒ…“—‹”‡•ƒ›”‹‰Š–•ȋ‡š…Ž—†‹‰ƒ›”‹‰Š–•„›™ƒ›‘ˆƒŽ‡ƒ•‡ˆ”‘‘–Š
–‘‘–Š‘”ˆ‘”ƒ’‡”‹‘†‘–‡š…‡‡†‹‰‘‡›‡ƒ”Ȍ‹‘”™‹–Š”‡•’‡…––‘ƒ›„—‹Ž†‹‰‘”’ƒ”––Š‡”‡‘ˆǡ„›
˜‹”–—‡‘ˆƒ›•—…Š–”ƒ•ƒ…–‹‘ƒ•‹•”‡ˆ‡””‡†–‘‹Žƒ—•‡ȋˆȌ‘ˆ‡…–‹‘ʹ͸ͻǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡
‘™‡”‘ˆ–Šƒ–„—‹Ž†‹‰‘”’ƒ”––Š‡”‡‘ˆǤ
 Žƒ—•‡ȋˆȌ‘ˆ‡…–‹‘ʹ͸ͻǡ‹–ƒ›„‡‘–‡†ǡ†‡ϐ‹‡•Dz–”ƒ•ˆ‡”dzˆ‘”–Š‡’—”’‘•‡•‘ˆŠƒ’–‡”Ǧ‘ˆ–Š‡
…‘‡Ǧ–ƒš…–ǡ†‡ƒŽ‹‰™‹–Š’—”…Šƒ•‡„›‡–”ƒŽ
‘˜‡”‡–‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–‹‡•‹…‡”–ƒ‹…ƒ•‡•
‘ˆ–”ƒ•ˆ‡”Ǥ
ȋȌ ”‘ϐ‹–• ƒ†
ƒ‹• ‘ˆ ‘Ǧ‘’‡”ƒ–‹˜‡ ‘…‹‡–› ˆ”‘ •—”ƒ…‡ —•‹‡•• ȏ‡…–‹‘ ͶͶȐǣ Š‡ ’”‘ϐ‹–• ƒ†
‰ƒ‹•‘ˆƒ›„—•‹‡••‘ˆ‹•—”ƒ…‡…ƒ””‹‡†‘„›ƒ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›•ŠƒŽŽ„‡…‘’—–‡†‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡”—Ž‡•…‘–ƒ‹‡†‹–Š‡ ‹”•–…Š‡†—Ž‡Ǥ
 –Š‹•…‘‡…–‹‘ǡ–Š‡ ‹”•–…Š‡†—Ž‡ƒ†—Ž‡͸‘ˆ–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡͳͻ͸ʹ’”‘˜‹†‡•ƒ•—†‡”ǣ
 Š‡ ’”‘ϐ‹–• ‘ˆ ‘ǦŽ‹ˆ‡ ‹•—”ƒ…‡ „—•‹‡••ǡ ‡Ǥ‰Ǥǡ ‹”‡ ‹•—”ƒ…‡ „—•‹‡••ǡ ƒ”‹‡ ‹•—”ƒ…‡ „—•‹‡••ǡ
‰‡‡”ƒŽ ‹•—”ƒ…‡ „—•‹‡•• ‡–…Ǥ •ŠƒŽŽ „‡ –Š‡ ’”‘ϐ‹–• †‹•…Ž‘•‡† „› –Š‡ ƒ—ƒŽ ƒ……‘—–• ”‡“—‹”‡† –‘ „‡
’”‡’ƒ”‡†—†‡”–Š‡•—”ƒ…‡…–ǡͳͻ͵ͺ•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰ƒ†Œ—•–‡–•ǣ
(i) ˆ•—…Š’”‘ϐ‹–•ƒ”‡ƒ””‹˜‡†ƒ–ƒˆ–‡”†‡†—…–‹‰ƒ›‡š’‡†‹–—”‡‘”ƒŽŽ‘™ƒ…‡™Š‹…Š‹•‘–ƒ†‹••‹„Ž‡
—†‡”‡…–‹‘•͵Ͳ–‘Ͷ͵‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ•—…Š‡š’‡†‹–—”‡‘”ƒŽŽ‘™ƒ…‡•ŠƒŽŽ„‡ƒ††‡†„ƒ…
–‘–Š‡’”‘ϐ‹–•Ǥ
(ii) Š‡”‡•‡”˜‡ˆ‘”—‡š’‹”‡†”‹•••ŠƒŽŽ„‡ƒŽŽ‘™‡†ƒ•ƒ†‡†—…–‹‘–‘–Š‡ˆ‘ŽŽ‘™‹‰‡š–‡–ǣ
ȋƒȌ ™Š‡”‡–Š‡‹•—”ƒ…‡„—•‹‡••”‡Žƒ–‡•–‘ϐ‹”‡‹•—”ƒ…‡‘”‹•…‡ŽŽƒ‡‘—•‹•—”ƒ…‡ǦͷͲΨ‘ˆ
–Š‡‡–’”‡‹—‹…‘‡‘ˆ•—…Š„—•‹‡••‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ
ȋ„Ȍ ™Š‡”‡ –Š‡ ‹•—”ƒ…‡ „—•‹‡•• ”‡Žƒ–‡• –‘ ƒ”‹‡ ‹•—”ƒ…‡ǡ ͳͲͲΨ ‘ˆ –Š‡ ‡– ’”‡‹—
‹…‘‡‘ˆ•—…Š„—•‹‡••‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ

Ǯ‡–’”‡‹—‹…‘‡ǯ‡ƒ•–Š‡ƒ‘—–‘ˆ’”‡‹—”‡…‡‹˜‡†ǡƒ•”‡†—…‡†„›–Š‡ƒ‘—–‘ˆ”‡Ǧ‹•—”ƒ…‡’”‡‹—•
’ƒ‹††—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
–Š‡…‘–‡š–‘ˆ…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ƒ”‡™‘”–Š‘–‹‰Ǥ
ȋͳȌ Š‡”‡–Š‡…”‡†‹–ˆƒ…‹Ž‹–›‹•‡š–‡†‡†–‘‡„‡”•‘ˆ–Š‡•‘…‹‡–›„›˜‹”–—‡‘ˆ•ƒŽ‡‘ˆ‰‘‘†•–‘–Š‡„›…‘•—‡”•ǯ
…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡ–Š‡‡š‡’–‹‘‹•‘–ƒ˜ƒ‹Žƒ„Ž‡ǤŠ‡–Š‡•‘…‹‡–›•‡ŽŽ•‰‘‘†•‘…”‡†‹––‘‹–•‡„‡”•ǡ
 434 Lesson 7 Ȉ EP-TL

•—…Š–”ƒ•ƒ…–‹‘…ƒ‘–„‡…‘•–”—‡†ƒ•ƒ…”‡†‹–•‘…‹‡–›–‘™Š‹…Š–Š‡„‡‡ϐ‹–‘ˆ‡…–‹‘ͺͲȋʹȌȋƒȌȋ‹Ȍ…ƒ„‡
‡š–‡†‡†ǤȏRodier Mill Employees’ Co-operative Stores Ltd. v. CIT (1982) 135 ITR 355ȐǤ
 ‘ŽŽ‘™‹‰ –Š‡ ”ƒ–‹‘ Žƒ‹† †‘™ „› –Š‡ ƒ†”ƒ• ‹‰Š ‘—”– ‹ –Š‡ …ƒ•‡ ‘ˆ Rodier Mill Employees’ Co-operative
Stores Ltd. v. Commissioner of Income-tax (1982, 135 ITR 355)ǡ–Š‡‡”ƒŽƒ‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆ‡”ƒŽƒ
‘Ǧ‘’‡”ƒ–‹˜‡‘•—‡”• ‡†‡”ƒ–‹‘–†Ǥ˜Ǥ‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšȋͳͻͺͺǡͳ͹ͲͶͷͷȌ–Šƒ––Š‡™‘”†•
Ǯ’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•ǯǡ‘……—””‹‰‹‡…–‹‘ͺͲȋʹȌȋƒȌȋ‹Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ•Š‘—Ž†„‡…‘•–”—‡†
ƒ••‹‹Žƒ”–‘ǡ‘”ƒ‹–‘–Š‡Ǯ…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ„ƒ‹‰ǯǡ’”‡…‡†‹‰–Š‡™‘”†•Dz‘”’”‘˜‹†‹‰…”‡†‹–
ˆƒ…‹Ž‹–‹‡•dz ‹ –Š‡ •ƒ‡ •—„Ǧ•‡…–‹‘Ǥ Š‡ ™‘”†• Ǯ’”‘˜‹†‹‰ …”‡†‹– ˆƒ…‹Ž‹–‹‡• –‘ ‹–• ‡„‡”•ǯ ‡ƒ• ’”‘˜‹†‹‰
…”‡†‹–„›™ƒ›‘ˆŽ‘ƒ•ƒ†‘–•‡ŽŽ‹‰‰‘‘†•‘…”‡†‹–Ǥ
ȋʹȌ Š‡”‡ •‘…‹‡–› ’—”…Šƒ•‡• ƒ—–‘Ǧ”‹…•Šƒ™• ƒ† •‡ŽŽ• –Š‡ –‘ ‡„‡”• ‘ Š‹”‡Ǧ’—”…Šƒ•‡ǡ ‹– ‹• ‘– ’”‘˜‹†‹‰
…”‡†‹–ˆƒ…‹Ž‹–›–‘‡„‡”•ƒ†‘–‡–‹–Ž‡†–‘‡š‡’–‹‘ȏC.I.T. v. Madras Auto Rickshaw Drivers’ Co-operative
Society (1983) 143 ITR 981ȐǤ–Š‹•…ƒ•‡‹–™ƒ•Š‡Ž†–Šƒ––Š‡–ƒš”‡Ž‹‡ˆ—†‡”‡…–‹‘ͺͲȋʹȌȋƒȌȋ‹Ȍ‘ˆ–Š‡…‘‡Ǧ
–ƒš…–ǡ‹•ƒ‰”ƒ–‘––‘ƒ…ƒ–‡‰‘”›‘ˆ‹…‘‡„—––‘ƒ…ƒ–‡‰‘”›‘ˆƒ••‡••‡‡•ƒ‡Ž›ǡƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›
ƒ•™‡”‹‰–Š‡†‡•…”‹’–‹‘‘ˆƒ•‘…‹‡–›‡‰ƒ‰‡†‹…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•–‘‹–•
‡„‡”•Ǥˆ–Š‡•‘…‹‡–›‹“—‡•–‹‘†‘‡•‘–ƒ•™‡”–‘–Š‹•†‡•…”‹’–‹‘ǡ‹–‹•‘–‡–‹–Ž‡†–‘–Š‡”‡Ž‹‡ˆǤ
ȋ͵Ȍ Bihar State Co-operative Bank Ltd. v. C.I.T. [(1960) 39 I.T.R. 114] –Š‡—’”‡‡‘—”–Šƒ•Š‡Ž†–Šƒ–‹ˆƒ…‘Ǧ
‘’‡”ƒ–‹˜‡•‘…‹‡–›…ƒ””›‹‰‘„ƒ‹‰„—•‹‡••‹˜‡•–•‹–•…‹”…—Žƒ–‹‰…ƒ’‹–ƒŽ‹•—…Šƒƒ‡”–Šƒ–‹–‹•”‡ƒ†‹Ž›
ƒ˜ƒ‹Žƒ„Ž‡ǡ–Š‡‹–‡”‡•–‘•—…Š‹˜‡•–‡–•ŠƒŽŽ…‘•–‹–—–‡‹…‘‡ˆ”‘„ƒ‹‰„—•‹‡••ƒ†–Š‡”‡ˆ‘”‡•ŠƒŽŽ
„‡‡š‡’–‹–Š‡Šƒ†•‘ˆ–Š‡…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǥ
ȋͶȌ –‡”‡•– ”‡…‡‹˜‡† ‘
‘˜‡”‡– ‡…—”‹–‹‡• Š‡Ž† „› …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ƒ• ‹–• •–‘…Ǧ‹Ǧ–”ƒ†‡ “—ƒŽ‹ϐ‹‡• ˆ‘”
†‡†—…–‹‘ˆ”‘‰”‘••–‘–ƒŽ‹…‘‡Ǥ—––Š‡†‡†—…–‹‘‹•‹ƒ’’Ž‹…ƒ„Ž‡–‘‹–‡”‡•–”‡…‡‹˜‡†ˆ”‘
‘˜‡”‡–
‡…—”‹–‹‡•Š‡Ž†ƒ•‹˜‡•–‡–•Ǥ[CIT v. Bombay State Co-operative Bank Ltd. (1968) 70 ITR 86 (S.C.)]Ǥ
 Š‡ƒ†Š›ƒ”ƒ†‡•Š‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆM.P. State Co-operative Bank Ltd. v. Addl. Commissioner of
Income-tax (1979, 119 ITR 327) –Šƒ–‹…‘‡ˆ”‘‹˜‡•–‡–‘ˆ”‡•‡”˜‡…ƒ’‹–ƒŽ‹•‡…—”‹–‹‡•™ƒ•‘–ƒ’ƒ”–‘ˆ
–Š‡ ‹…‘‡ ˆ”‘ „ƒ‹‰ „—•‹‡•• ƒ† †‹† ‘– “—ƒŽ‹ˆ› ˆ‘” ‡š‡’–‹‘Ǥ ‹‹Žƒ”Ž›ǡ –Š‡ ‹–‡”‡•– ‹…‘‡ ˆ”‘
‹˜‡•–‡–‘ˆ’”‘˜‹†‡–ˆ—†‹…‘‡†‹†‘–ˆ‘”’ƒ”–‘ˆ–Š‡‹…‘‡ˆ”‘–Š‡„ƒ‹‰„—•‹‡••ƒ††‹†‘–
“—ƒŽ‹ˆ›ˆ‘”‡š‡’–‹‘—†‡”‡…–‹‘ͺͲȋ‹ȌȋƒȌȋ‘™‡…–‹‘ͺͲȌǤ‹•–‹‰—‹•Š‹‰–Š‡”ƒ–‹‘Žƒ‹††‘™‹–Š‹•…ƒ•‡ǡ
–Š‡ƒ†Š›ƒ”ƒ†‡•Š‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆCommissioner of Income-tax v. Bhopal Co-operative Central
Bank Ltd. (1987, 164 ITR 713) –Šƒ––Š‡•‡…—”‹–›†‡’‘•‹–•ƒ†‡ƒ”‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ƒ‹‰‡‰—Žƒ–‹‘
…–ǡ ͳͻͶͻ ƒ† ‹–‡”‡•– ‹…‘‡ ”‡…‡‹˜‡† ‘ †‡’‘•‹–• ˆ‘”‡† ’ƒ”– ‘ˆ ‹…‘‡ ˆ”‘ „—•‹‡•• ‘ˆ „ƒ‹‰ ƒ†
‡š‡’–—†‡”‡…–‹‘ͺͲȋʹȌȋ‹Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ
 Š‡ŽŽƒŠƒ„ƒ†‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆAddl. Commissioner of Income-tax v. U.P. Co-operative Cane Union
(1978, 114 ITR 70) –Šƒ–•‡ŽŽ‹‰‰‘‘†•‘…”‡†‹–™ƒ•‘Ž›ƒ‘†‡‘ˆ…ƒ””›‹‰‘„—•‹‡••Ǥ–†‹†‘–„‡…‘‡ƒ
„—•‹‡•• ‘ˆ ’”‘˜‹†‹‰ …”‡†‹– ˆƒ…‹Ž‹–›Ǥ ‘ŽŽ‘™‹‰ –Š‹• …ƒ•‡ǡ –Š‡ ŽŽƒŠƒ„ƒ† ‹‰Š ‘—”– Š‡Ž† ‹ –Š‡ …ƒ•‡ ‘ˆ
Commissioner of Income-tax v. U.P. Co-operative Cane Union Federation Ltd. (1980, 122 ITR 913) –Šƒ– –Š‡
‡š’”‡••‹‘ Ǯ’”‘˜‹†‹‰ …”‡†‹– ˆƒ…‹Ž‹–‹‡•ǯ ‹ ‡…–‹‘ ͺͲȋʹȌȋƒȌȋ‹Ȍ ™‘—Ž† …‘’”‡Š‡† –Š‡ „—•‹‡•• ‘ˆ Ž‡†‹‰
‘‡› ‘ ‹–‡”‡•–Ǥ – ™‘—Ž† ƒŽ•‘ …‘’”‡Š‡† –Š‡ „—•‹‡•• ‘ˆ Ž‡†‹‰ •‡”˜‹…‡• ‘ ’”‘ϐ‹– ˆ‘” ‰—ƒ”ƒ–‡‡‹‰
’ƒ›‡–•„‡…ƒ—•‡‰—ƒ”ƒ–‡‡‹‰’ƒ›‡–‹•ƒ•—…Šƒ’ƒ”–‘ˆ„ƒ‹‰„—•‹‡••ˆ‘”ƒˆˆ‘”†‹‰…”‡†‹–ˆƒ…‹Ž‹–›ƒ•
ƒ†˜ƒ…‹‰Ž‘ƒ•Ǥ
 ‘™‡˜‡”ǡ™Š‡”‡ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Š‘Ž†••‡…—”‹–‹‡•ƒ•’‡””‡“—‹”‡‡–•‘ˆƒ‹‰‡‰—Žƒ–‹‘…–ƒ†
†‹”‡…–‹‘•‘ˆ–Š‡ǡ–Š‡†‡†—…–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡‘•—…Š‹–‡”‡•–‹…‘‡Ǥ‹‹Žƒ”Ž›ǡ•—„•‹†›ˆ”‘
‘˜‡”‡–
ˆ‘”‘’‡‹‰‡™„”ƒ…Š‡•ƒ†‰‹˜‹‰Ž‘ƒ•–‘’‘‘”‡”•‡…–‹‘•ƒ–Ž‘™‡””ƒ–‡‘ˆ‹–‡”‡•–ǡ‹•‹…‘‡ƒ––”‹„—–ƒ„Ž‡
–‘„ƒ‹‰„—•‹‡••ȏCIT v. Madurai District Central Co-operative Bank Ltd. (1984) 148 ITR 196ȐǤ
ȋͷȌ Š‡…‘‡‡ƒ”‡†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ„ƒ‹‰ƒ†’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•
–‘‹–•‡„‡”•ˆ”‘…‘‹••‹‘ƒ†„”‘‡”ƒ‰‡„›†‡ƒŽ‹‰‹„‹ŽŽ•‘ˆ‡š…Šƒ‰‡ǡ•—„•‹†›ˆ”‘
‘˜‡”‡–ǡ
ƒ†‹••‹‘ ˆ‡‡ ˆ”‘ ‡„‡”•ǡ ‹…‹†‡–ƒŽ …Šƒ”‰‡• ƒ† ϐ‹ƒ…‹ƒŽ ’‡ƒŽ–‹‡• ‹• ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ „—•‹‡•• ‘ˆ
„ƒ‹‰‘ˆ’”‘˜‹†‹‰…”‡†‹–ˆƒ…‹Ž‹–‹‡•–‘‹–•‡„‡”•ƒ†Š‡…‡†‡†—…–‹„Ž‡—†‡”‡…–‹‘ͺͲȋʹȌȋƒȌ
ȋ‹Ȍ ȏCIT v. Dhar Central Co-operative Bank (1984) 149 ITR 438 (MP)ȐǤ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 435

 ‘ŽŽ‘™‹‰‹–•†‡…‹•‹‘‹–Š‡…ƒ•‡‘ˆCommissioner of Income-tax v. Dhar Central Co-operative Bank (1984,

149 ITR 438)ǡ–Š‡ƒ†Š›ƒ”ƒ†‡•Š‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆCommissioner of Income-tax v. Bhopal
Co- operative Central Bank Ltd. (1988, 172 ITR 423) –Šƒ–ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ
„ƒ‹‰‹•‡–‹–Ž‡†–‘‡š‡’–‹‘‹”‡•’‡…–‘ˆ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡ…‘‹••‹‘ǡ•—„•‹†›ǡ†‘ƒ–‹‘ƒ†
Ž‘…‡””‡–Ǥ‰ƒ‹ǡ–Š‡•ƒ‹††‡…‹•‹‘™ƒ•ˆ‘ŽŽ‘™‡†„›‹–‹–Š‡…ƒ•‡‘ˆMadhya Pradesh Rajya Sahakari Bank
v. Commissioner of Income-tax (1988, 174 ITR 150) Š‘Ž†‹‰–Šƒ––Š‡‹…‘‡ˆ”‘…‘‹••‹‘ǡ‡š…Šƒ‰‡
ƒ†‘–Š‡”‹•…‡ŽŽƒ‡‘—•‹…‘‡™ƒ•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡„—•‹‡••‘ˆ„ƒ‹‰ƒ†–Šƒ––Š‡ƒ••‡••‡‡™ƒ•
‡–‹–Ž‡†–‘‡š‡’–‹‘—†‡”‡…–‹‘ͺͳȋ‘™ͺͲȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ‹”‡•’‡…––Š‡”‡‘ˆǤ
ȋ͸Ȍ •‘…‹‡–›™Š‹…Š„—›•ƒ†•‡ŽŽ•’”‘†—…–•‘ˆ‘–Š‡”•‘…‹‡–‹‡•‘”‹†‹˜‹†—ƒŽ•‹•‘–‡–‹–Ž‡†–‘‡š‡’–‹‘ǤŠ‡”‡ƒ
•‘…‹‡–›ƒ—ˆƒ…–—”‡•ƒ†•‡ŽŽ•‹–•‘™’”‘†—…–•‘”–Š‡’”‘†—…–•‘ˆ‹–•‡„‡”•ǡ•—…Š•‘…‹‡–›‹•‡–‹–Ž‡†–‘
‡š‡’–‹‘Ǥ‡…‡ǡ–Š‡‡–”ƒŽ‘––ƒ‰‡†—•–”‹‡•’‘”‹—ǡ‡™‡ŽŠ‹ǡ‹•‘–‡–‹–Ž‡†–‘‡š‡’–‹‘—†‡”
‡…–‹‘ͺͲȏAddl. C.I.T. v. Indian Co-operative Union Ltd. (1982) 134 ITR 108 (Delhi)ȐǤ
 ˆ–Š‡‰‘†‘™‘”™ƒ”‡Š‘—•‡‹•Ž‡–ˆ‘”ƒ’—”’‘•‡‘–Š‡”–Šƒ•–‘”ƒ‰‡ǡ’”‘…‡••‹‰‘ˆˆƒ…‹Ž‹–ƒ–‹‰–Š‡ƒ”‡–‹‰‘ˆ
…‘‘†‹–‹‡•ǡ–Š‡‹…‘‡†‡”‹˜‡†–Š‡”‡ˆ”‘„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›™‘—Ž†‘–„‡†‡†—…–‹„Ž‡—†‡”‡…–‹‘
ͺͲǤC.I.T. v. Ahmedabad Maskati Cloth Dealers Co-operative Warehouses Society Ltd. [(1986) 162 ITR 142
(Guj.)Ȑ‹–™ƒ•ƒŽ•‘Š‡Ž†–Šƒ–•Š‘’•‹™Š‹…Š™Š‘Ž‡•ƒŽ‡‘””‡–ƒ‹Ž„—•‹‡••‹…Ž‘–Š‹•…ƒ””‹‡†‘…ƒ‘–…‘‡
™‹–Š‹–Š‡‡ƒ‹‰‘ˆǮ‰‘†‘™•ǯ‘”Ǯ™ƒ”‡Š‘—•‡•ǯǤ
 Š‡
—Œƒ”ƒ– ‹‰Š ‘—”–ǯ• †‡…‹•‹‘ ‹ –Š‡ …ƒ•‡ ‘ˆ Commissioner of Income-tax v. Ahmedabad Maskati Cloth
Dealers Co-operative Warehouses Society Ltd. (1986, 162 ITR 142) Šƒ†•‹…‡„‡‡ƒ’’”‘˜‡†„›–Š‡—’”‡‡
‘—”–‹–Š‡…ƒ•‡‘ˆ‘—–Š”…‘–‹•–”‹…–‘Ǧ‘’‡”ƒ–‹˜‡ƒ”‡–‹‰‘…‹‡–›–†Ǥȋ‹ˆ”ƒȌǤŠ‡
—Œƒ”ƒ–‹‰Š‘—”–
Šƒ†ǡ‹–‡”ƒŽ‹ƒǡŠ‡Ž†–Šƒ––Š‡™‘”†•ˆƒ…‹Ž‹–ƒ–‹‰–Š‡ƒ”‡–‹‰‘ˆ…‘‘†‹–‹‡•ǯ™‘—Ž†‘–Ž‡†…‘Ž‘—”–‘–Š‡
™‘”†•Ǯ‰‘†‘™•‘”™ƒ”‡Š‘—•‡•ǯ•‘ƒ•–‘‡Žƒ”‰‡–Š‡‹”‡ƒ‹‰Ǥ
 ǧȑͳͳͷȒ
‹ŽŽ ʹͲͳͻǦʹͲȋʹͲʹͲǦʹͳȌ–Š‡”‡™ƒ•‘Ž›‘‡”‡‰‹‡‘ˆƒšƒ–‹‘ˆ‘”‘‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•ƒ†™‡”‡”‡“—‹”‡†
–‘ƒ’’Ž›–Š‡Žƒ„”ƒ–‡ȋ—’–‘ͳͲǡͲͲͲǡ‡š–ͳͲǡͲͲͲƬ„ƒŽƒ…‡‘˜‡”ʹͲǡͲͲͲȌ•’‡…‹ϐ‹‡†‹–Š‡—ƒŽ ‹ƒ…‡…–‘‘–ƒŽ
…‘‡…‘’—–‡†ƒˆ–‡”ƒŽŽ‘™‹‰ƒ›†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ǤΪ•—”…Šƒ”‰‡̷ͳʹΨ‹ˆ‘–ƒŽ…‘‡εͳ…”‘”‡Ϊ
ͶΨ ‹ƒ…‡…–ǡʹͲʹͲŠƒ•‹–”‘†—…‡†ƒ‡™’–‹‘ƒŽƒš›•–‡ˆ‘”‘‘’‡”ƒ–‹˜‡•‘…‹‡–›—Ȁ•ͳͳͷ‘ˆ–Š‡
…‘‡ƒš…–ǡͳͻ͸ͳ™Ǥ‡ǤˆǤʹͲʹͳǦʹʹ–‘’”‘˜‹†‡ˆ‘”ϐŽƒ–”ƒ–‡‘ˆƒš‘ˆʹʹΨΪͳͲΨϐŽƒ–•—”…Šƒ”‰‡ΪͶΨ–‘„‡
ƒ’’Ž‹‡†‘‘–ƒŽ…‘‡…ƒŽ…—Žƒ–‡†™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ƒ†‡š‡’–‹‘•Ǥ‡…‡ǡˆ”‘ʹͲʹͳǦ
ʹʹȋ‘” ʹͲʹͲǦʹͳȌǡ–Š‡”‡ƒ”‡–™‘‘’‡”ƒ–‹˜‡–ƒš•›•–‡•ƒ•—†‡”ǣ
Ȉ š‹•–‹‰ƒš›•–‡™Š‡”‡ƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡†‡†—…–‹‘•ƒ†‡š‡’–‹‘•ƒ”‡ƒŽŽ‘™‡†ƒ†–Š‡–ƒš”ƒ–‡•ƒ”‡
ƒ•’‡”–Š‡Žƒ„”ƒ–‡•‘ˆ–ƒš•’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǤ
Ȉ ‡…–‹‘ͳͳͷ™Š‹…Š‹•ƒ’–‹‘ƒŽƒš›•–‡ƒ†—†‡”™Š‹…Šƒ›†‡†—…–‹‘•ƒ†‡š‡’–‹‘•Šƒ˜‡
„‡‡†‹•ƒŽŽ‘™‡†„—–ϐŽƒ––ƒš”ƒ–‡‘ˆʹʹΨ‹•’”‘˜‹†‡†‹–Š‡•‡…–‹‘ͳͳͷ‹–•‡ŽˆǤ

‘ŽŽ‘™‹‰•‡…–‹‘ͳͳͷ‹•‡”–‡†„›–Š‡ ‹ƒ…‡…–ǡʹͲʹͲǡ™Ǥ‡ǤˆǤͳ•–’”‹ŽʹͲʹͳǣ
Š‡…‘‡Ǧ–ƒš’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ’‡”•‘ǡ„‡‹‰ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›”‡•‹†‡–‹†‹ƒǡˆ‘”
ƒ›’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ•ŠƒŽŽǡƒ––Š‡
‘’–‹‘‘ˆ•—…Š’‡”•‘ǡ„‡…‘’—–‡†ƒ––Š‡”ƒ–‡‘ˆʹʹΨǡ‹ˆ–Š‡…‘†‹–‹‘•‡–‹‘‡†„‡Ž‘™ƒ”‡•ƒ–‹•ϐ‹‡†Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡’‡”•‘ˆƒ‹Ž•–‘•ƒ–‹•ˆ›–Š‡…‘†‹–‹‘•‹…‘’—–‹‰‹–•‹…‘‡‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ–Š‡
‘’–‹‘ •ŠƒŽŽ „‡…‘‡ ‹˜ƒŽ‹† ‹ ”‡•’‡…– ‘ˆ –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Šƒ– ’”‡˜‹‘—• ›‡ƒ” ƒ† •—„•‡“—‡–
ƒ••‡••‡– ›‡ƒ”• ƒ† ‘–Š‡” ’”‘˜‹•‹‘• ‘ˆ –Š‡ …– •ŠƒŽŽ ƒ’’Ž›ǡ ƒ• ‹ˆ –Š‡ ‘’–‹‘ Šƒ† ‘– „‡‡ ‡š‡”…‹•‡† ˆ‘” –Š‡
ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Šƒ–’”‡˜‹‘—•›‡ƒ”ƒ†•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•Ǥ
Conditions:
ȋͳȌ ‘”–Š‡’—”’‘•‡•‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌǡ–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›•ŠƒŽŽ„‡…‘’—–‡†ǣ
ȋ‹Ȍ ™‹–Š‘—–ƒ›†‡†—…–‹‘—Ȁ•ͳͲ‘”—Ȁ•͵ʹȋͳȌȋ‹‹ƒȌ‘”—Ȁ•͵ʹ‘”—Ȁ•͵͵‘”—Ȁ•͵͵‘”•—„Ǧ
…Žƒ—•‡ȋ‹‹Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹ƒȌ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘”•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘
͵ͷ‘”—Ȁ•͵ͷ‘”—Ȁ•͵ͷ‘”—†‡”ƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ǧ‘–Š‡”–Šƒ•‡…ͺͲ Ǣ
436 Lesson 7 Ȉ EP-TL

ȋ‹‹Ȍ ™‹–Š‘—–•‡–‘ˆˆ‘ˆƒ›Ž‘••…ƒ””‹‡†ˆ‘”™ƒ”†‘”†‡’”‡…‹ƒ–‹‘ˆ”‘ƒ›‡ƒ”Ž‹‡”ƒ••‡••‡–›‡ƒ”ǡ‹ˆ
•—…ŠŽ‘••‘”†‡’”‡…‹ƒ–‹‘‹•ƒ––”‹„—–ƒ„Ž‡–‘ƒ›‘ˆ–Š‡†‡†—…–‹‘•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹ȌǢƒ†
ȋ‹‹‹Ȍ „›…Žƒ‹‹‰–Š‡†‡’”‡…‹ƒ–‹‘ǡ‹ˆƒ›ǡ—Ȁ•͵ʹǡ‘–Š‡”–Šƒ—Ȁ•͵ʹȋͳȌȋ‹‹ƒȌǡ†‡–‡”‹‡†‹•—…Šƒ‡”
ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋʹȌ Š‡Ž‘••ƒ††‡’”‡…‹ƒ–‹‘”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡‰‹˜‡
ˆ—ŽŽ‡ˆˆ‡…––‘ƒ†‘ˆ—”–Š‡”†‡†—…–‹‘ˆ‘”•—…ŠŽ‘••‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”ƒ›•—„•‡“—‡–
›‡ƒ”ǣ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡”‡‹•ƒ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹”‡•’‡…–‘ˆƒ„Ž‘…‘ˆƒ••‡–™Š‹…ŠŠƒ•‘–„‡‡
‰‹˜‡ˆ—ŽŽ‡ˆˆ‡…––‘’”‹‘”–‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ…‘””‡•’‘†‹‰
ƒ†Œ—•–‡–•ŠƒŽŽ„‡ƒ†‡–‘–Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆ•—…Š„Ž‘…‘ˆƒ••‡–•ƒ•‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲ
‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ‹ˆ–Š‡‘’–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‹•‡š‡”…‹•‡†ˆ‘”ƒ’”‡˜‹‘—•›‡ƒ”
”‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǤ
ȋ͵Ȍ …ƒ•‡‘ˆƒ’‡”•‘ǡŠƒ˜‹‰ƒ‹–‹–Š‡–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡ǡƒ•”‡ˆ‡””‡†–‘‹•—„Ǧ
•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͺͲǡ™Š‹…ŠŠƒ•‡š‡”…‹•‡†‘’–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͷȌǡ–Š‡…‘†‹–‹‘•…‘–ƒ‹‡†
‹ •—„Ǧ•‡…–‹‘ ȋʹȌ •ŠƒŽŽ „‡ ‘†‹ϐ‹‡† –‘ –Š‡ ‡š–‡– –Šƒ– –Š‡ †‡†—…–‹‘ —†‡” –Š‡ •ƒ‹† •‡…–‹‘ •ŠƒŽŽ „‡
ƒ˜ƒ‹Žƒ„Ž‡–‘•—…Š‹–•—„Œ‡…––‘ˆ—Žϐ‹Ž‡–‘ˆ–Š‡…‘†‹–‹‘•…‘–ƒ‹‡†‹–Šƒ–•‡…–‹‘Ǥ
Explanationǣ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ•‡…–‹‘ǡ–Š‡–‡”Dz‹–dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹
…Žƒ—•‡ȋœ…Ȍ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡’‡…‹ƒŽ…‘‘‹…‘‡•…–ǡʹͲͲͷǤ
ȋͶȌ ‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›—Ž‡••‘’–‹‘‹•‡š‡”…‹•‡†„›–Š‡’‡”•‘‹•—…Šƒ‡”ƒ•
ƒ›„‡’”‡•…”‹„‡†‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻˆ‘”ˆ—”‹•Š‹‰
–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”ƒˆ–‡”–Š‡
ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳƒ†•—…Š‘’–‹‘‘…‡‡š‡”…‹•‡†•ŠƒŽŽƒ’’Ž›–‘•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•ǣ
 ”‘˜‹†‡† –Šƒ– ‘…‡ –Š‡ ‘’–‹‘ Šƒ• „‡‡ ‡š‡”…‹•‡† ˆ‘” ƒ› ’”‡˜‹‘—• ›‡ƒ”ǡ ‹– …ƒ‘– „‡ •—„•‡“—‡–Ž›
™‹–Š†”ƒ™ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”’”‡˜‹‘—•›‡ƒ”Ǥ

Illustration 16:
‡ŽŠ‹‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›†‡”‹˜‡†–Š‡ˆ‘ŽŽ‘™‹‰‹…‘‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ͲͳǤͶǤʹͲʹͳ–‘͵ͳǤ͵ǤʹͲʹʹǦ
••‡••‡–‡ƒ”ʹͲʹʹǦʹ͵Ǥ

ȋͳȌ ƒ”‡–‹‰‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‘ˆ‹–•‡„‡”• ͳͲǡͲͲͲ

ȋʹȌ –‡”‡•– ˆ”‘ ‡„‡”• ‘ †‡Žƒ›‡† ’ƒ›‡– ‘ˆ –Š‡ ’”‹…‡ ‘ˆ ‰‘‘†•’—”…Šƒ•‡† ͳǡͲͲͲ
ȋ͵Ȍ ”‘…‡••‹‰ȋ™‹–Š‘—–ƒ‹†‘ˆ’‘™‡”Ȍ‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡‘ˆ‹–• ‡„‡”• ͺǡͲͲͲ
ȋͶȌ —’’Ž›‹‰‹Ž–‘–Š‡
‘˜‡”‡–ȋ”ƒ‹•‡†„›‹–•‡„‡”•Ȍ ͳͷǡͲͲͲ
ȋͷȌ ‰‡…›„—•‹‡•• ʹͷǡͲͲͲ
ȋ͸Ȍ ‹˜‹†‡†•ˆ”‘‘–Š‡”‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–‹‡• ͳͷǡͲͲͲ
ȋ͹Ȍ …‘‡ˆ”‘Ž‡––‹‰‘ˆ‰‘†‘™• ʹͲǡͲͲͲ
ȋͺȌ …‘‡ˆ”‘‘—•‡”‘’‡”–› ͵ͲǡͲͲͲ

‘’—–‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡‡ŽŠ‹‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›Ǥ
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 437

Solution:
’–‹‘ͳǣ••‡••‡‡Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Computation of total income of Delhi Co-operative Society

Particulars Amount (Rs.) Amount (Rs.)

Income from House Property ͵ͲǡͲͲͲ
‡––‹‰‘ˆ‰‘†‘™• ʹͲǡͲͲͲ ͷͲǡͲͲͲ
…‘‡ˆ”‘—•‹‡••
ƒ”‡–‹‰‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…– ͳͲǡͲͲͲ
”‘…‡••‹‰‘ˆ‰‘‘†• ͺǡͲͲͲ
—’’Ž›‹‰‹Ž ͳͷǡͲͲͲ
‰‡…›„—•‹‡•• ʹͷǡͲͲͲ ͷͺǡͲͲͲ
Income from other sources
–‡”‡•–ˆ”‘‡„‡”• ͳǡͲͲͲ
‹˜‹†‡†• ͳͷǡͲͲͲ ͳ͸ǡͲͲͲ

”‘••…‘‡ ͳǡʹͶǡͲͲͲ
Deductions under Section 80P
‡––‹‰‘ˆ‰‘†‘™• ʹͲǡͲͲͲ
ƒ”‡–‹‰‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…‡ ͳͲǡͲͲͲ
”‘…‡••‹‰‘ˆ‰‘‘†• ͺǡͲͲͲ
—’’Ž›‹‰‹Ž ͳͷǡͲͲͲ
‰‡…›„—•‹‡•• ʹͷǡͲͲͲ
‹˜‹†‡†• ͳͷǡͲͲͲ ȋͻ͵ǡͲͲͲȌ
Total income 31,000

Notes:
ȋͳȌ –‡”‡•–ˆ”‘‡„‡”••ǤͳǡͲͲͲ‹•‘–†‡†—…–‹„Ž‡ƒ•‹–‹•‘–ˆ”‘–Š‡…”‡†‹–ˆƒ…‹Ž‹–‹‡•’”‘˜‹†‡†–‘–Š‡
‡„‡”ƒ†ˆ‘”–Š‹•’—”’‘•‡•‘…‹‡–›…ƒ‘–„‡•ƒ‹†–‘„‡ƒ…”‡†‹–•‘…‹‡–›ȏRodier Mill Employees’ Co-
operative Stores Ltd. v. CIT (1982) 135 ITR 355ȐǤ
ȋʹȌ Š‡ ‰”‘•• –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ •‘…‹‡–› ‡š…‡‡†• •Ǥ ʹͲǡͲͲͲ Š‡…‡ †‡†—…–‹‘ ”‡‰ƒ”†‹‰ ‹…‘‡ ˆ”‘
Š‘—•‡’”‘’‡”–›‹•‘–ƒ˜ƒ‹Žƒ„Ž‡Ǥ
’–‹‘ʹǣ••‡••‡‡Šƒ•‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
Computation of total income of Delhi Co-operative Society

Particulars Amount (Rs.) Amount (Rs.)

Income from House Property ͵ͲǡͲͲͲ
‡––‹‰‘ˆ‰‘†‘™• ʹͲǡͲͲͲ ͷͲǡͲͲͲ
…‘‡ˆ”‘—•‹‡••
ƒ”‡–‹‰‘ˆƒ‰”‹…—Ž–—”ƒŽ’”‘†—…– ͳͲǡͲͲͲ
”‘…‡••‹‰‘ˆ‰‘‘†• ͺǡͲͲͲ
—’’Ž›‹‰‹Ž ͳͷǡͲͲͲ
 438 Lesson 7 Ȉ EP-TL

‰‡…›„—•‹‡•• ʹͷǡͲͲͲ ͷͺǡͲͲͲ

Income from other sources
–‡”‡•–ˆ”‘‡„‡”• ͳǡͲͲͲ
‹˜‹†‡†• ͳͷǡͲͲͲ ͳ͸ǡͲͲͲ

”‘••…‘‡ ͳǡʹͶǡͲͲͲ
Deductions under Section 80P 
Total income 1,24,000

Notes:
ȋͳȌ –‡”‡•–ˆ”‘‡„‡”••ǤͳǡͲͲͲ‹•‘–†‡†—…–‹„Ž‡ƒ•‹–‹•‘–ˆ”‘–Š‡…”‡†‹–ˆƒ…‹Ž‹–‹‡•’”‘˜‹†‡†–‘–Š‡
‡„‡”ƒ†ˆ‘”–Š‹•’—”’‘•‡•‘…‹‡–›…ƒ‘–„‡•ƒ‹†–‘„‡ƒ…”‡†‹–•‘…‹‡–›ȏ‘†‹‡”‹ŽŽ’Ž‘›‡‡•ǯ‘Ǧ
‘’‡”ƒ–‹˜‡–‘”‡•–†Ǥ˜ǤȋͳͻͺʹȌͳ͵ͷ͵ͷͷȐǤ
ȋʹȌ Š‡ ‰”‘•• –‘–ƒŽ ‹…‘‡ ‘ˆ –Š‡ •‘…‹‡–› ‡š…‡‡†• •Ǥ ʹͲǡͲͲͲ Š‡…‡ †‡†—…–‹‘ ”‡‰ƒ”†‹‰ ‹…‘‡ ˆ”‘
Š‘—•‡’”‘’‡”–›‹•‘–ƒ˜ƒ‹Žƒ„Ž‡Ǥ
ȋ͵Ȍ ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ‹•‘–ƒŽŽ‘™‡†—Ȁ•ͳͳͷ

ȑͳ͵Ȓ

‘Political Party’ ‡ƒ• ƒ ƒ••‘…‹ƒ–‹‘ ‘” „‘†› ‘ˆ ‹†‹˜‹†—ƒŽ …‹–‹œ‡• ‘ˆ †‹ƒ ”‡‰‹•–‡”‡† ™‹–Š –Š‡ Ž‡…–‹‘
‘‹••‹‘‘ˆ†‹ƒƒ•ƒ’‘Ž‹–‹…ƒŽ’ƒ”–›ƒ†‹…Ž—†‡•ƒ’‘Ž‹–‹…ƒŽ’ƒ”–›†‡‡‡†–‘„‡”‡‰‹•–‡”‡†™‹–Š–Šƒ–Ž‡…–‹‘
‘‹••‹‘‘ˆ†‹ƒǤ
‘Ž‹–‹…ƒŽ’ƒ”–‹‡•ƒ”‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš‘–Š‡‹”‹…‘‡ƒ†–Š‡›ƒ”‡ƒ••‡••‡†ƒ•Ǯƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǯǤ‘™‡˜‡”ǡ
–Š‡‹…‘‡†‡”‹˜‡†„›–Š‡•‡’ƒ”–‹‡•ƒ•‹…‘‡„›™ƒ›‘ˆ˜‘Ž—–ƒ”›…‘–”‹„—–‹‘•ǡ…‘‡ˆ”‘‘—•‡”‘’‡”–›Ǣ
ƒ†…‘‡ˆ”‘–Š‡”‘—”…‡•‘”ƒ’‹–ƒŽ
ƒ‹•ƒ”‡‡š‡’–•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
ȋ‹Ȍ –Š‡’ƒ”–›‡‡’•ƒ†ƒ‹–ƒ‹••—…Š„‘‘•‘ˆƒ……‘—–ƒ†‘–Š‡”†‘…—‡–•ƒ•™‘—Ž†‡ƒ„Ž‡–Š‡••‡••‹‰
ˆϐ‹…‡”–‘’”‘’‡”Ž›†‡†—…‡–Š‡‹…‘‡Ǣ
ȋ‹‹Ȍ ‹”‡•’‡…–‘ˆ‡ƒ…Š•—…Š˜‘Ž—–ƒ”›…‘–”‹„—–‹‘‹‡š…‡••‘ˆǯ•ǤʹͲǡͲͲͲǡ–Š‡’ƒ”–›‡‡’•ƒ†ƒ‹–ƒ‹•ƒ
”‡…‘”†‘ˆ–Š‡…‘–”‹„—–‹‘•ƒ†ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ–Š‡’‡”•‘•™Š‘Šƒ˜‡ƒ†‡•—…Š…‘–”‹„—–‹‘Ǣ
ƒ†–Š‡ƒ……‘—–•‘ˆ–Š‡’ƒ”–›ƒ”‡ƒ—†‹–‡†„›ƒŠƒ”–‡”‡†……‘—–ƒ–‘”‘–Š‡”“—ƒŽ‹ϐ‹‡†ƒ……‘—–ƒ–Ǥ
ȋ‹‹‹Ȍ ‘†‘ƒ–‹‘‘ˆ•ǤʹͲͲͲ‘”‘”‡…ƒ„‡”‡…‡‹˜‡†„›ƒ‘Ž‹–‹…ƒŽƒ”–›‘–Š‡”™‹•‡–Šƒ„›ƒƒ……‘—–’ƒ›‡‡
…Š‡“—‡Ȁ†”ƒˆ–Ȁ–Š”‘—‰Šƒ„ƒƒ……‘—–‘”–Š”‘—‰Š‡Ž‡…–‘”ƒŽ„‘†•Ǥ

‡–—”‘ˆ‹…‘‡—†‡”•‡…–‹‘ͳ͵ͻȋͶȌ•Š‘—Ž†„‡ϐ‹Ž‡†„›–Š‡‘Ž‹–‹…ƒŽƒ”–›‘‘”„‡ˆ‘”‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ
”‡–—”—Ȁ•ͳ͵ͻȋͳȌǡ‘–Š‡”™‹•‡‡š‡’–‹‘—†‡”•‡…–‹‘ͳ͵™‹ŽŽ‘–„‡‰‹˜‡Ǥ
Š‡Š‹‡ˆš‡…—–‹˜‡ˆϐ‹…‡”‘ˆ–Š‡’‘Ž‹–‹…ƒŽ’ƒ”–›‹•”‡“—‹”‡†–‘ϐ‹Ž‡ƒ”‡–—”‘ˆ‹…‘‡‹ˆ–Š‡–‘–ƒŽ‹…‘‡ȋ…‘’—–‡†
—†‡”–Š‹•…–™‹–Š‘—–‰‹˜‹‰‡ˆˆ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳ͵Ȍ‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–
…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšǤ–Š‹•…‘‡…–‹‘ǡ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳ͵ͻȋͳȌ•ŠƒŽŽƒ’’Ž›Ǥ
ELECTORAL TRUST
ǮŽ‡…–‘”ƒŽ”—•–ǯ‡ƒ•ƒ–”—•–•‘ƒ’’”‘˜‡†„›–Š‡‘ƒ”†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡ƒ†‡‹–Š‹•”‡‰ƒ”†„›
–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
‘Ž—–ƒ”›…‘–”‹„—–‹‘•”‡…‡‹˜‡†„›ƒŽ‡…–‘”ƒŽ”—•–ȏ‡…–‹‘ͳ͵Ȑ
›˜‘Ž—–ƒ”›…‘–”‹„—–‹‘•”‡…‡‹˜‡†„›ƒ‡Ž‡…–‘”ƒŽ–”—•–•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•
›‡ƒ”‘ˆ•—…Š‡Ž‡…–‘”ƒŽ–”—•–ǡ‹ˆǦ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 439

ȋƒȌ •—…Š‡Ž‡…–‘”ƒŽ–”—•–†‹•–”‹„—–‡•–‘ƒ›’‘Ž‹–‹…ƒŽ’ƒ”–›ǡ”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ʹͻ‘ˆ–Š‡‡’”‡•‡–ƒ–‹‘
‘ˆ–Š‡‡‘’Ž‡…–ǡͳͻͷͳǡ†—”‹‰–Š‡•ƒ‹†’”‡˜‹‘—•›‡ƒ”ǡ‹‡–›Ǧϐ‹˜‡’‡”…‡–‘ˆ–Š‡ƒ‰‰”‡‰ƒ–‡†‘ƒ–‹‘•
”‡…‡‹˜‡† „› ‹– †—”‹‰ –Š‡ •ƒ‹† ’”‡˜‹‘—• ›‡ƒ” ƒŽ‘‰ ™‹–Š –Š‡ •—”’Ž—•ǡ ‹ˆ ƒ› „”‘—‰Š– ˆ‘”™ƒ”† ˆ”‘ ƒ›
‡ƒ”Ž‹‡”’”‡˜‹‘—•›‡ƒ”Ǣƒ†
ȋ„Ȍ •—…Š‡Ž‡…–‘”ƒŽ–”—•–ˆ—…–‹‘•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”—Ž‡•ƒ†‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ

Tax Exemptions for Charitable Trusts and Institutions

Trust ǣ ‡…–‹‘ ͵ ‘ˆ –Š‡ †‹ƒ ”—•–• …– †‡ϐ‹‡• ƒ –”—•– –‘ ‡ƒ Dzƒ ‘„Ž‹‰ƒ–‹‘ ƒ‡š‡† –‘ –Š‡ ‘™‡”•Š‹’ ‘ˆ
’”‘’‡”–›ƒ†ƒ”‹•‹‰‘—–‘ˆƒ…‘ϐ‹†‡…‡”‡’‘•‡†‹ƒ†ƒ……‡’–‡†„›–Š‡‘™‡”ǡ‘”†‡…Žƒ”‡†ƒ†ƒ……‡’–‡†„›Š‹ˆ‘”
–Š‡„‡‡ϐ‹–‘ˆƒ‘–Š‡”ƒ†–Š‡‘™‡”dzǤ
Institutionǣ‘”‰ƒ‹•ƒ–‹‘™‹–Šƒ…‘•–‹–—–‹‘…‘’‘•‡†‘ˆƒ”‡•‹†‡–ǡ‹…‡Ǧ”‡•‹†‡–ǡ‡…”‡–ƒ”›ǡ‘‹––‡‡
‡„‡”• ƒ† ‘”†‹ƒ”› ‡„‡”•ǡ ‹• ‘™ ƒ• ƒ •–‹–—–‹‘Ǥ Š‡ ƒ…–‹˜‹–‹‡• ‘ˆ –Š‡ ‹•–‹–—–‹‘ ƒ† ‹–• ‘ˆϐ‹…‡• ƒ”‡
”‡‰—Žƒ–‡†„›”—Ž‡•ƒ†„›‡ǦŽƒ™•‘ˆ–Š‡‹•–‹–—–‹‘Ǥ—‹˜‡”•‹–›‘”ƒŠƒ„‡”‘ˆ‘‡”…‡‹•ƒ•–‹–—–‹‘Ǥ
Charitable purposeǣ Š‡ –‡” Ǯ…Šƒ”‹–ƒ„Ž‡ ’—”’‘•‡ǯ Šƒ• „‡‡ †‡ϐ‹‡† ‹ –Š‹• …– ‹ ƒ ™‹†‡” •‡•‡ –Šƒ ™Šƒ– ‹•
…‘‘Ž›—†‡”•–‘‘†Ǥ……‘”†‹‰–‘‡…–‹‘ʹȋͳͷȌ‘ˆ–Š‡…–ǡ‹–‹…Ž—†‡•”‡Ž‹‡ˆ‘ˆ–Š‡’‘‘”ǡ‡†—…ƒ–‹‘ǡ›‘‰ƒ‡†‹…ƒŽ
”‡Ž‹‡ˆǡ’”‡•‡”˜ƒ–‹‘‘ˆ‡˜‹”‘‡–ȋ‹…Ž—†‹‰™ƒ–‡”•Š‡†•ǡˆ‘”‡•–•ƒ†™‹Ž†Ž‹ˆ‡Ȍƒ†’”‡•‡”˜ƒ–‹‘‘ˆ‘—‡–•‘”
’Žƒ…‡•‘”‘„Œ‡…–•‘ˆƒ”–‹•–‹…‘”Š‹•–‘”‹…‹–‡”‡•–ƒ†ƒ†˜ƒ…‡‡–‘ˆƒ›‘–Š‡”‘„Œ‡…–‘ˆ‰‡‡”ƒŽ’—„Ž‹…—–‹Ž‹–›‘–
‹˜‘Ž˜‹‰–Š‡…ƒ””›‹‰‘‘ˆƒ›ƒ…–‹˜‹–›ˆ‘”’”‘ϐ‹–Ǥ
‘”†‡”–‘“—ƒŽ‹ˆ›ˆ‘”–ƒš‡š‡’–‹‘•–Š‡…Šƒ”‹–›—•–„‡‘ˆƒ’—„Ž‹……Šƒ”ƒ…–‡”ǡƒ†–Š‡–”—•–‘”‹•–‹–—–‹‘•Š‘—Ž†
‘–„‡…”‡ƒ–‡†‘”‡•–ƒ„Ž‹•Š‡†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆƒ›’ƒ”–‹…—Žƒ””‡Ž‹‰‹‘—•…‘—‹–›‘”…ƒ•–‡ǡ‹ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘
‹•‡•–ƒ„Ž‹•Š‡†ˆ‘”–Š‡„‡‡ϐ‹–‘ˆ–Š‡‡„‡”‘ˆƒ…Ž—„‘”‡’Ž‘›‡‡•‘ˆƒˆƒ…–‘”›ǡ‹–™‘—Ž†‘–„‡ƒ’—„Ž‹……Šƒ”‹–ƒ„Ž‡
–”—•–Ǥ‹†‡‹”…—Žƒ”‘Ǥ͵ͻͷ†ƒ–‡†‡’–ǤʹͶǡͳͻͺͶ’”‘‘–‹‘‘ˆ•’‘”–•ƒ†‰ƒ‡•‹•…‘•‹†‡”‡†–‘„‡ƒ…Šƒ”‹–ƒ„Ž‡
’—”’‘•‡™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘ʹȋͳͷȌǤ……‘”†‹‰Ž›ƒƒ••‘…‹ƒ–‹‘‘”‹•–‹–—–‹‘ǡ‡‰ƒ‰‡†‹–Š‡’”‘‘–‹‘
‘ˆ•’‘”–•‘”‰ƒ‡•…ƒ…Žƒ‹‡š‡’–‹‘—†‡”‡…–‹‘ͳͳǡ‡˜‡‹ˆ‹–‹•‘–ƒ’’”‘˜‡†—†‡”‡…–‹‘ͳͲȋʹ͵ȌǤ
”‘˜‹†‡†–Šƒ––Š‡ƒ†˜ƒ…‡‡–‘ˆƒ›‘–Š‡”‘„Œ‡…–‘ˆ‰‡‡”ƒŽ’—„Ž‹…—–‹Ž‹–›•ŠƒŽŽ‘–„‡ƒ…Šƒ”‹–ƒ„Ž‡’—”’‘•‡ǡ‹ˆ‹–
‹˜‘Ž˜‡•–Š‡…ƒ””›‹‰‘‘ˆƒ›ƒ…–‹˜‹–›‹–Š‡ƒ–—”‡‘ˆ–”ƒ†‡ǡ…‘‡”…‡‘”„—•‹‡••ǡ‘”ƒ›ƒ…–‹˜‹–›‘ˆ”‡†‡”‹‰
ƒ›•‡”˜‹…‡‹”‡Žƒ–‹‘–‘ƒ›–”ƒ†‡ǡ…‘‡”…‡‘”„—•‹‡••ǡˆ‘”ƒ…‡••‘”ˆ‡‡‘”ƒ›‘–Š‡”…‘•‹†‡”ƒ–‹‘ǡ‹””‡•’‡…–‹˜‡
‘ˆ–Š‡ƒ–—”‡‘ˆ—•‡‘”ƒ’’Ž‹…ƒ–‹‘ǡ‘””‡–‡–‹‘ǡ‘ˆ–Š‡‹…‘‡ˆ”‘•—…Šƒ…–‹˜‹–›ǡ—Ž‡••Ǧ
ȋ‹Ȍ •—…Šƒ…–‹˜‹–›‹•—†‡”–ƒ‡‹–Š‡…‘—”•‡‘ˆƒ…–—ƒŽ…ƒ””›‹‰‘—–‘ˆ•—…Šƒ†˜ƒ…‡‡–‘ˆƒ›‘–Š‡”‘„Œ‡…–‘ˆ
‰‡‡”ƒŽ’—„Ž‹…—–‹Ž‹–›Ǣƒ†
ȋ‹‹Ȍ –Š‡ƒ‰‰”‡‰ƒ–‡”‡…‡‹’–•ˆ”‘•—…Šƒ…–‹˜‹–›‘”ƒ…–‹˜‹–‹‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ†‘‘–‡š…‡‡†–™‡–›’‡”
…‡–‘ˆ–Š‡–‘–ƒŽ”‡…‡‹’–•ǡ‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘—†‡”–ƒ‹‰•—…Šƒ…–‹˜‹–›‘”ƒ…–‹˜‹–‹‡•ǡ‘ˆ–Šƒ–’”‡˜‹‘—•
›‡ƒ”Ǣ

…‘‡‘––‘„‡‹…Ž—†‡†‹–Š‡‘–ƒŽ…‘‡ȏ‡…–‹‘ͳͳȋͳȌȐ
……‘”†‹‰–‘‡…–‹‘ͳͳȋͳȌǡ–Š‡ˆ‘ŽŽ‘™‹‰‹–‡•‘ˆ‹…‘‡ƒ”‡‘––‘„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•
›‡ƒ”‘ˆ–Š‡ƒ••‡••‡‡™Š‘‹•‹”‡…‡‹’–‘ˆ–Š‡•ƒ‡ǣ
(i) Income derived from property held under trust wholly for charitable or religious purposes: …‘‡
†‡”‹˜‡†ˆ”‘’”‘’‡”–›Š‡Ž†—†‡”–”—•–™Š‘ŽŽ›ˆ‘”…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡••ŠƒŽŽ„‡‡š‡’––‘–Š‡
‡š–‡– –‘ ™Š‹…Š •—…Š ‹…‘‡ ‹• ƒ’’Ž‹‡† ˆ‘” •—…Š ’—”’‘•‡• ‹ †‹ƒ ƒ† ™Š‡”‡ ƒ› •—…Š ‹…‘‡ ‹•
ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ˆ‘”ƒ’’Ž‹…ƒ–‹‘–‘•—…Š’—”’‘•‡•‹†‹ƒǡ–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡‹…‘‡•‘
ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–‹•‘–‹‡š…‡••‘ˆͳͷΨ‘ˆ–Š‡‹…‘‡ˆ”‘•—…Š’”‘’‡”–›Ǥ
(ii) Income derived from property held under trust in part only for charitable or religious purposes:
…‘‡†‡”‹˜‡†ˆ”‘’”‘’‡”–›Š‡Ž†—†‡”–”—•–‹’ƒ”–‘Ž›ˆ‘”…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡••ŠƒŽŽ„‡
‡š‡’–ǤŠ‹•‡š‡’–‹‘™‘—Ž†ǡŠ‘™‡˜‡”ǡ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›ˆ‘”–”—•–•…”‡ƒ–‡†„‡ˆ‘”‡ͳǤͶǤͳͻ͸ʹǤ —”–Š‡”ǡ
™Š‡”‡ƒ›•—…Š‹…‘‡‹•ϐ‹ƒŽŽ›•‡–ƒ’ƒ”–ˆ‘”ƒ’’Ž‹…ƒ–‹‘–‘•—…Š’—”’‘•‡•‹†‹ƒǡ•ŠƒŽŽ„‡‡š‡’––‘–Š‡
‡š–‡––‘™Š‹…Š–Š‡‹…‘‡•‘•‡–ƒ’ƒ”–‹•‘–‹‡š…‡••‘ˆͳͷΨ‘ˆ–Š‡‹…‘‡ˆ”‘•—…Š’”‘’‡”–›Ǥ
 440 Lesson 7 Ȉ EP-TL

(iii) Income from property held under trust created on or after 1.4.1952: ˆ‘”ƒ…Šƒ”‹–ƒ„Ž‡’—”’‘•‡™Š‹…Š
–‡†•–‘’”‘‘–‡‹–‡”ƒ–‹‘ƒŽ™‡Žˆƒ”‡‹™Š‹…Š†‹ƒ‹•‹–‡”‡•–‡†•ŠƒŽŽ„‡‡š‡’––‘–Š‡‡š–‡––‘™Š‹…Š
•—…Š‹…‘‡‹•ƒ’’Ž‹‡†ˆ‘”•—…Š…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•‘—–•‹†‡†‹ƒǤ
(iv) Income from property held under trust created before 1.4.1952 ˆ‘”…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡•
•ŠƒŽŽ „‡ ‡š‡’– –‘ –Š‡ ‡š–‡– –‘ ™Š‹…Š •—…Š ‹…‘‡ ‹• ƒ’’Ž‹‡† ˆ‘” •—…Š ’—”’‘•‡• ‘—–•‹†‡ †‹ƒǤ Š‹•
‡š‡’–‹‘‹•ǡŠ‘™‡˜‡”ǡ•—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•Šƒ•ǡ„›ƒ‰‡‡”ƒŽ‘”
•’‡…‹ƒŽ‘”†‡”ǡ‹••—‡†ƒ†‹”‡…–‹‘‹‡‹–Š‡”‘ˆ–Š‡ƒ„‘˜‡–™‘…ƒ•‡•–Šƒ––Š‡‹…‘‡‹“—‡•–‹‘™‘—Ž†‘–„‡
‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’‡”•‘‹”‡…‡‹’–‘ˆ•—…Š‹…‘‡Ǥ
(v) Income in the form of voluntary contributions ƒ†‡™‹–Šƒ•’‡…‹ϐ‹…†‹”‡…–‹‘–Šƒ––Š‡›•ŠƒŽŽˆ‘”’ƒ”–‘ˆ–Š‡
…‘”’—•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘•ŠƒŽŽ„‡ˆ—ŽŽ›‡š‡’–Ǥ

Explanation:
”‡•’‡…–‘ˆ‹–‡•ȋ‹Ȍƒ†ȋ‹‹Ȍƒ„‘˜‡ǣ
ȋͳȌ  …‘’—–‹‰ –Š‡ ͳͷΨ ‘ˆ –Š‡ ‹…‘‡ ™Š‹…Š ƒ› „‡ ƒ……——Žƒ–‡† ‘” •‡– ƒ’ƒ”–ǡ ƒ› •—…Š ˜‘Ž—–ƒ”›
…‘–”‹„—–‹‘•ƒ•ƒ”‡”‡ˆ‡””‡†–‘‹‡…–‹‘ͳʹȋ†‡ƒŽ–™‹–ŠŽƒ–‡”‹–Š‹•Šƒ’–‡”Ȍ•ŠƒŽŽ„‡†‡‡‡†–‘„‡’ƒ”–
‘ˆ–Š‡‹…‘‡Ǥ
ȋʹȌ ˆǡ‹–Š‡’”‡˜‹‘—•›‡ƒ”ǡ–Š‡‹…‘‡ƒ’’Ž‹‡†–‘…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡•‹†‹ƒˆƒŽŽ••Š‘”–‘ˆͺͷΨ
‘ˆ–Š‡‹…‘‡†‡”‹˜‡††—”‹‰–Šƒ–›‡ƒ”ˆ”‘’”‘’‡”–›Š‡Ž†—†‡”–”—•–ǡ„›ƒ›ƒ‘—–‘ƒ……‘—–‘ˆȋ‹Ȍ
‘–”‡…‡‹˜‹‰–Š‡‹…‘‡†—”‹‰–Šƒ–›‡ƒ”ǡ‘”ȋ‹‹Ȍˆ‘”ƒ›‘–Š‡””‡ƒ•‘ǡ–Š‡ǣ
ȋƒȌ …ƒ•‡”‡ˆ‡””‡†–‘‹ȋ‹Ȍǡ•‘—…Š‘ˆ–Š‡‹…‘‡ƒ’’Ž‹‡†–‘•—…Š’—”’‘•‡‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•
›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡‹•”‡…‡‹˜‡†‘”†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰ƒ•†‘‡•
‘–‡š…‡‡†–Š‡•ƒ‹†ƒ‘—–•ŠƒŽŽ„‡†‡‡‡†–‘„‡‹…‘‡ƒ’’Ž‹‡†–‘•—…Š’—”’‘•‡•†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•†‡”‹˜‡†Ǣƒ†–Š‡‹…‘‡•‘†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’Ž‹‡†
•ŠƒŽŽ ‘– „‡ –ƒ‡ ‹–‘ ƒ……‘—– ‹ …ƒŽ…—Žƒ–‹‰ –Š‡ ƒ‘—– ‘ˆ ‹…‘‡ ƒ’’Ž‹‡† –‘ •—…Š ’—”’‘•‡•
†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡‹•”‡…‡‹˜‡†‘”†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹‡†‹ƒ–‡Ž›
ˆ‘ŽŽ‘™‹‰ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
ȋƒȌ  …ƒ•‡ ”‡ˆ‡””‡† –‘ ‹ ȋ‹‹Ȍǡ •‘ —…Š ‘ˆ –Š‡ ‹…‘‡ ƒ’’Ž‹‡† –‘ •—…Š ’—”’‘•‡• ‹ †‹ƒ †—”‹‰ –Š‡
’”‡˜‹‘—•›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•†‡”‹˜‡†ƒ•†‘‡•
‘–‡š…‡‡†–Š‡•ƒ‹†ƒ‘—–•ŠƒŽŽ„‡†‡‡‡†–‘„‡‹…‘‡ƒ’’Ž‹‡†–‘•—…Š’—”’‘•‡•†—”‹‰–Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•†‡”‹˜‡†Ǣƒ†–Š‡‹…‘‡•‘†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’Ž‹‡†
•ŠƒŽŽ ‘– „‡ –ƒ‡ ‹–‘ ƒ……‘—– ‹ …ƒŽ…—Žƒ–‹‰ –Š‡ ƒ‘—– ‘ˆ ‹…‘‡ ƒ’’Ž‹‡† –‘ •—…Š ’—”’‘•‡•
†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•†‡”‹˜‡†Ǥ

›ƒ‘—–…”‡†‹–‡†‘”’ƒ‹†ǡ‘—–‘ˆ‹…‘‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ”‡ƒ†™‹–Šš’Žƒƒ–‹‘ͳǡ–‘ƒ›
‘–Š‡”–”—•–‘”‹•–‹–—–‹‘”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹǡ„‡‹‰…‘–”‹„—–‹‘™‹–Šƒ•’‡…‹ϐ‹…†‹”‡…–‹‘–Šƒ––Š‡›•ŠƒŽŽ
ˆ‘”’ƒ”–‘ˆ–Š‡…‘”’—•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ǡ•ŠƒŽŽ‘–„‡–”‡ƒ–‡†ƒ•ƒ’’Ž‹…ƒ–‹‘‘ˆ‹…‘‡ˆ‘”…Šƒ”‹–ƒ„Ž‡‘”
”‡Ž‹‰‹‘—•’—”’‘•‡•Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ†‡–‡”‹‹‰–Š‡ƒ‘—–‘ˆƒ’’Ž‹…ƒ–‹‘‘ˆ‹…‘‡ǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͲȋƒȌȋ‹ƒȌ”‡Žƒ–‹‰–‘
͵ͲΨ†‹•ƒŽŽ‘™ƒ…‡ˆ‘”‘†‡†—…–‹‘‘ˆƒ†•‡…–‹‘ͶͲȋ͵Ȍƒ†ͶͲȋ͵Ȍ”‡Žƒ–‹‰–‘’ƒ›‡–‡š…‡‡†‹‰•Ǥ
ͳͲǡͲͲͲǡ•ŠƒŽŽǡ—–ƒ–‹•—–ƒ†‹•ǡƒ’’Ž›ƒ•–Š‡›ƒ’’Ž›‹…‘’—–‹‰–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•
ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz
Š‡”‡ ƒ› ‹…‘‡ ƒ• †‹•…—••‡† ‹ ȋƒȌ ƒ† ȋ„Ȍ ƒ„‘˜‡ ‹• ‘– ƒ’’Ž‹‡† –‘ …Šƒ”‹–ƒ„Ž‡ ‘” ”‡Ž‹‰‹‘—• ’—”’‘•‡• ‹ †‹ƒ
™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡ǡ–Š‡•—…Š‹…‘‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’‡”•‘‹”‡…‡‹’––Š‡”‡‘ˆǣ
ȋƒȌ In case of not receiving the income:—…Š‹…‘‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•”‡…‡‹˜‡†Ǥ
ȋ„Ȍ In any other case: —…Š ‹…‘‡ •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ –Š‡ ‹…‘‡ ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹‡†‹ƒ–‡Ž›
ˆ‘ŽŽ‘™‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•†‡”‹˜‡†ȏŽƒ—•‡ȋͳȌȐǤ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 441

ƒ’‹–ƒŽ
ƒ‹•ȏ‡…–‹‘ͳͳȋͳȌȐ
1. Asset held wholly for religious purposes or charitable purposes
 ‘‡–‹‡• ƒ …ƒ’‹–ƒŽ ƒ••‡– Š‡Ž† —†‡” –”—•– ™Š‘ŽŽ› ˆ‘” …Šƒ”‹–ƒ„Ž‡ ‘” ”‡Ž‹‰‹‘—• ’—”’‘•‡• ‹• –”ƒ•ˆ‡””‡†
”‡•—Ž–‹‰‹ƒ…ƒ’‹–ƒŽ‰ƒ‹ǤŠ‡‡–…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘•—…Š–”ƒ•ˆ‡”ƒ›„‡—–‹Ž‹•‡†™Š‘ŽŽ›‘”‹
’ƒ”–‹ƒ…“—‹”‹‰ƒ‘–Š‡”…ƒ’‹–ƒŽƒ••‡––‘„‡•‘Š‡Ž†™Š‘ŽŽ›ˆ‘””‡Ž‹‰‹‘—•‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•Ǥ•—…Š
…ƒ•‡•–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’Ž‹‡†ˆ‘”…Šƒ”‹–ƒ„Ž‡‘”
”‡Ž‹‰‹‘—•’—”’‘•‡•–‘–Š‡‡š–‡–•–ƒ–‡†Š‡”‡‹„‡Ž‘™ǣ
ȋ‹Ȍ Š‡”‡–Š‡™Š‘Ž‡‘ˆ–Š‡‡–…‘•‹†‡”ƒ–‹‘‹•—–‹Ž‹•‡†ˆ‘”ƒ…“—‹”‹‰–Š‡‡™…ƒ’‹–ƒŽƒ••‡–•ǡ•‘—…Š
‘ˆ–Š‡…ƒ’‹–ƒŽ‰ƒ‹•Ǥ
ȋ‹‹Ȍ Š‡”‡‘Ž›ƒ’ƒ”–‘ˆ–Š‡‡–…‘•‹†‡”ƒ–‹‘‹•—–‹Ž‹•‡†ˆ‘”ƒ…“—‹”‹‰–Š‡‡™…ƒ’‹–ƒŽƒ••‡–ǡ•‘—…Š
‘ˆ–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ•‹•‡“—ƒŽ–‘–Š‡ƒ‘—–„›™Š‹…Š–Š‡ƒ‘—–•‘—–‹Ž‹•‡†‡š…‡‡†•–Š‡…‘•–‘ˆ–Š‡
–”ƒ•ˆ‡””‡†ƒ••‡–Ǥ

Example 1ǣ…Šƒ”‹–ƒ„Ž‡–”—•–Šƒ†ƒ…ƒ’‹–ƒŽƒ••‡––Š‡…‘•–‘ˆ™Š‹…Š™ƒ••ǤͺͲǡͲͲͲƒ†‹–•‘Ž†–Š‡•ƒ‡ˆ‘”
•ǤͳǡͲͲǡͲͲͲǤŠ‡™Š‘Ž‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘ǡ‹Ǥ‡Ǥǡ•ǤͳǡͲͲǡͲͲͲ™‹ŽŽ„‡‡š‡’–ˆ”‘…ƒ’‹–ƒŽ‰ƒ‹•–ƒš‹ˆƒ
‡™…ƒ’‹–ƒŽƒ••‡–‹•„‘—‰Š–ˆ‘”•ǤͳǡͲͲǡͲͲͲǤ
Example 2ǣˆƒ–”—•–Šƒ†ƒ…ƒ’‹–ƒŽƒ••‡–…‘•–‹‰•ǤͳǡͲͲǡͲͲͲƒ†•‘Ž†–Š‡•ƒ‡ˆ‘”•ǤͳǡͷͲǡͲͲͲƒ†–Š‡
„‘—‰Š–ƒ…ƒ’‹–ƒŽƒ••‡–ˆ‘”•Ǥͳǡ͵ͲǡͲͲͲǡ–Š‡–Š‡™‘”‹‰™‹ŽŽ„‡ƒ•ˆ‘ŽŽ‘™•ǣ

Particulars Rs.
ƒŽ‡’”‘…‡‡†•‘ˆ‘Ž†ƒ••‡– ͳǡͷͲǡͲͲͲ
‘•–‘ˆ–Š‡‘Ž†ƒ••‡– ȋͳǡͲͲǡͲͲͲȌ
ƒ’‹–ƒŽ‰ƒ‹ ͷͲǡͲͲͲ
‘•–‘ˆ–Š‡‡™ƒ••‡– ͳǡ͵ͲǡͲͲͲ
‘•–‘ˆ–Š‡‘Ž†ƒ••‡– ȋͳǡͲͲǡͲͲͲȌ
ƒ’‹–ƒŽ‰ƒ‹—–‹Ž‹•‡† ͵ͲǡͲͲͲ
ƒ’‹–ƒŽ‰ƒ‹–ƒšƒ„Ž‡ ʹͲǡͲͲͲ
2. Assets held partly for religious or charitable purposes
 –‹•“—‹–‡’‘••‹„Ž‡–Šƒ–ƒ…ƒ’‹–ƒŽƒ••‡–‹•Š‡Ž†„›ƒ–”—•–’ƒ”–Ž›ˆ‘””‡Ž‹‰‹‘—•‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•ǤŠ‡”‡
•—…Šƒ…ƒ’‹–ƒŽƒ••‡–‹•–”ƒ•ˆ‡””‡†ƒ†–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡‡–…‘•‹†‡”ƒ–‹‘‹•—–‹Ž‹•‡†ˆ‘”ƒ…“—‹”‹‰
ƒ‘–Š‡”…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡ƒ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”•ŠƒŽŽ„‡†‡‡‡†
–‘Šƒ˜‡„‡‡ƒ’’Ž‹‡†–‘…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡•–‘–Š‡‡š–‡–•’‡…‹ϐ‹‡†Š‡”‡—†‡”ǣ
ȋ‹Ȍ ™Š‡”‡–Š‡™Š‘Ž‡‘ˆ–Š‡‡–…‘•‹†‡”ƒ–‹‘‹•—–‹Ž‹•‡†‹ƒ…“—‹”‹‰–Š‡‡™…ƒ’‹–ƒŽƒ••‡–ǡ–Š‡™Š‘Ž‡‘ˆ
–Š‡ƒ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ•—…Š…ƒ’‹–ƒŽ‰ƒ‹Ǣ
ȋ‹‹Ȍ ‹ƒ›‘–Š‡”…ƒ•‡ǡ•‘—…Š‘ˆ–Š‡ƒ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽ‰ƒ‹ƒ•‹•‡“—ƒŽ–‘–Š‡ƒ‘—–ǡ‹ˆ
ƒ›ǡ„›™Š‹…Š–Š‡ƒ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ–Š‡ƒ‘—–—–‹Ž‹•‡†ˆ‘”ƒ…“—‹”‹‰–Š‡‡™ƒ••‡–‡š…‡‡†•–Š‡
ƒ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ–Š‡…‘•–‘ˆ–Š‡–”ƒ•ˆ‡””‡†ƒ••‡–Ǥ

Dzš’Žƒƒ–‹‘dz–‘‡…–‹‘ͳͳȋͳȌ’”‘˜‹†‡•ǣ
Ǯ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘ǯ‡ƒ•–Š‡ˆ”ƒ…–‹‘™Š‹…Š”‡’”‡•‡–•–Š‡‡š–‡––‘™Š‹…Š–Š‡‹…‘‡†‡”‹˜‡†ˆ”‘
–Š‡…ƒ’‹–ƒŽƒ••‡––”ƒ•ˆ‡””‡†™ƒ•‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡•—…Š–”ƒ•ˆ‡”ƒ’’Ž‹…ƒ„Ž‡–‘…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•
’—”’‘•‡•Ǥ
Ǯ‘•– ‘ˆ –Š‡ –”ƒ•ˆ‡””‡† ƒ••‡–ǯ ‡ƒ• –Š‡ ƒ‰‰”‡‰ƒ–‡ ‘ˆ –Š‡ …‘•– ‘ˆ ƒ…“—‹•‹–‹‘ ȋƒ• ƒ•…‡”–ƒ‹‡† ˆ‘” –Š‡
’—”’‘•‡•‘ˆ‡…–‹‘Ͷͺƒ†Ͷͻ‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–™Š‹…Š‹•–Š‡•—„Œ‡…–‘ˆ–Š‡–”ƒ•ˆ‡”ƒ†–Š‡…‘•–‘ˆƒ›
‹’”‘˜‡‡––Š‡”‡–‘™‹–Š‹–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘–Šƒ–‡š’”‡••‹‘‹•—„Ǧ…Žƒ—•‡ȋ„Ȍ‘ˆ…Žƒ—•‡ȋͳȌ‘ˆ
‡…–‹‘ͷͷǤ
Ǯ‡–…‘•‹†‡”ƒ–‹‘ǯ‡ƒ•–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆ–Š‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†‘”ƒ……”—‹‰ƒ•ƒ”‡•—Ž–‘ˆ–Š‡–”ƒ•ˆ‡”
‘ˆ–Š‡…ƒ’‹–ƒŽƒ••‡–ƒ•”‡†—…‡†„›ƒ›‡š’‡†‹–—”‡‹…—””‡†™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›‹…‘‡…–‹‘™‹–Š
•—…Š–”ƒ•ˆ‡”Ǥ
 442 Lesson 7 Ȉ EP-TL

Illustration 17

–”—•–Šƒ•ƒ…ƒ’‹–ƒŽƒ••‡–…‘•–‹‰•ǤʹǡͲͲǡͲͲͲƒ†ͳȀʹ‘ˆ‹–•‹…‘‡‹•—–‹Ž‹•‡†ˆ‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡Ǥ–‹••‘Ž†
ˆ‘”•Ǥ͵ǡͷͲǡͲͲͲǤˆ–Š‡–”—•–„—›•ƒ‘–Š‡”…ƒ’‹–ƒŽƒ••‡–ˆ‘”•Ǥ͵ǡͷͲǡͲͲͲ–Š‡ƒ’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ–Š‡…ƒ’‹–ƒŽ
‰ƒ‹†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’Ž‹‡†ˆ‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡Ǥ—’’‘•‹‰–Šƒ––Š‡–”—•–„—›•ƒ‘–Š‡”ƒ••‡–ˆ‘”•Ǥ
ʹǡͻͲǡͲͲͲǤ
Solution:

Particulars Rs.
ƒŽ‡’”‘…‡‡†•‘ˆƒ’‹–ƒŽƒ••‡– ͵ǡͷͲǡͲͲͲ
‘•–‘ˆ–Š‡ƒ••‡–•‘Ž† ʹǡͲͲǡͲͲͲ
ƒ’‹–ƒŽ‰ƒ‹‘–”ƒ•ˆ‡”‘ˆ…ƒ’‹–ƒŽƒ••‡– ͳǡͷͲǡͲͲͲ
’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‹Ǥ‡ǤͳȀʹ ͹ͷǡͲͲͲ
‘–Š‡”ƒ••‡–’—”…Šƒ•‡† ʹǡͻͲǡͲͲͲ
’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘—–‹Ž‹•‡†ȋͳȀʹ‘ˆ•ǤʹǡͻͲǡͲͲͲȌ ͳǡͶͷǡͲͲͲ
’’”‘’”‹ƒ–‡ˆ”ƒ…–‹‘‘ˆ–Š‡‘”‹‰‹ƒŽ…ƒ’‹–ƒŽƒ••‡–
ͳȀʹ‘ˆ•ǤʹǡͲͲǡͲͲͲ ȋͳǡͲͲǡͲͲͲȌ
ƒ’‹–ƒŽ‰ƒ‹—–‹Ž‹•‡† ͶͷǡͲͲͲ
ƒ’‹–ƒŽ‰ƒ‹‘–—–‹Ž‹•‡† ͵ͲǡͲͲͲ

……——Žƒ–‹‘•‘ˆ…‘‡ȏ‡…–‹‘ͳͳȋʹȌȐ
Š‹Ž‡†‡ƒŽ‹‰™‹–Š‡…–‹‘ͳͳ‹–Šƒ•„‡‡•–ƒ–‡†–Šƒ–ƒ……——Žƒ–‹‘‘ˆ‹…‘‡ˆ”‘–”—•–’”‘’‡”–›Š‡Ž†ˆ‘”…Šƒ”‹–ƒ„Ž‡
’—”’‘•‡‹•’‡”‹••‹„Ž‡—’–‘ͳͷ’‡”…‡–‘–Š‡‰”‘••”‡…‡‹’–•™‹–Š‘—–ƒ––”ƒ…–‹‰ƒ›Ž‹ƒ„‹Ž‹–›–‘–ƒšǤŠ‡”‡–Š‡
„ƒŽƒ…‡ͺͷ’‡”…‡–‘ˆ–Š‡‹…‘‡‹•‘–ƒ’’Ž‹‡†‘”‹•‘–†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’Ž‹‡†–‘…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•
’—”’‘•‡•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ•—…Š‹…‘‡•‘ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡
–‘–ƒŽ‹…‘‡‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡ˆ—Žϐ‹ŽŽ‡†ǣ
ȋƒȌ •—…Š’‡”•‘ˆ—”‹•Š‡•ƒ•–ƒ–‡‡–‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†‹–Š‡’”‡•…”‹„‡†ƒ‡”–‘–Š‡••‡••‹‰
ˆϐ‹…‡”ǡ•–ƒ–‹‰–Š‡’—”’‘•‡ˆ‘”™Š‹…Š–Š‡‹…‘‡‹•„‡‹‰ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ƒ†–Š‡’‡”‹‘†ˆ‘”
™Š‹…Š–Š‡‹…‘‡‹•–‘„‡ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ǡ™Š‹…Š•ŠƒŽŽ‹‘…ƒ•‡‡š…‡‡†ϐ‹˜‡›‡ƒ”•Ǣ
ȋ„Ȍ –Š‡‘‡›•‘ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–‹•‹˜‡•–‡†‘”†‡’‘•‹–‡†‹–Š‡ˆ‘”•‘”‘†‡••’‡…‹ϐ‹‡†‹•—„Ǧ
•‡…–‹‘ȋͷȌǢ
ȋ…Ȍ –Š‡•–ƒ–‡‡–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌ‹•ˆ—”‹•Š‡†‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†—†‡”•—„Ǧ•‡…–‹‘
ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ͻˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ǣ

”‘˜‹†‡†–Šƒ–‹…‘’—–‹‰–Š‡’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ–Š‡’‡”‹‘††—”‹‰™Š‹…Š–Š‡‹…‘‡
…‘—Ž†‘–„‡ƒ’’Ž‹‡†ˆ‘”–Š‡’—”’‘•‡ˆ‘”™Š‹…Š‹–‹••‘ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ǡ†—‡–‘ƒ‘”†‡”‘”‹Œ—…–‹‘‘ˆƒ›
…‘—”–ǡ•ŠƒŽŽ„‡‡š…Ž—†‡†Ǥ
Explanation ǣ›ƒ‘—–…”‡†‹–‡†‘”’ƒ‹†ǡ‘—–‘ˆ‹…‘‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌǡ
”‡ƒ†™‹–Š–Š‡š’Žƒƒ–‹‘–‘–Šƒ–•—„Ǧ•‡…–‹‘ǡ™Š‹…Š‹•‘–ƒ’’Ž‹‡†ǡ„—–‹•ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ǡ–‘ƒ›–”—•–‘”
‹•–‹–—–‹‘”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹ‘”–‘ƒ›ˆ—†‘”‹•–‹–—–‹‘‘”–”—•–‘”ƒ›—‹˜‡”•‹–›‘”‘–Š‡”‡†—…ƒ–‹‘ƒŽ
‹•–‹–—–‹‘‘”ƒ›Š‘•’‹–ƒŽ‘”‘–Š‡”‡†‹…ƒŽ‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹˜Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ˜Ȍ‘”•—„Ǧ…Žƒ—•‡
ȋ˜‹Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ˜‹ƒȌ‘ˆ…Žƒ—•‡ȋʹ͵Ȍ‘ˆ•‡…–‹‘ͳͲǡ•ŠƒŽŽ‘–„‡–”‡ƒ–‡†ƒ•ƒ’’Ž‹…ƒ–‹‘‘ˆ‹…‘‡ˆ‘”…Šƒ”‹–ƒ„Ž‡‘”
”‡Ž‹‰‹‘—•’—”’‘•‡•ǡ‡‹–Š‡”†—”‹‰–Š‡’‡”‹‘†‘ˆƒ……——Žƒ–‹‘‘”–Š‡”‡ƒˆ–‡”Ǥ
– ‹• ‹’‘”–ƒ– –‘ ‘–‡ –Šƒ– –‘ …Žƒ‹ ‡š‡’–‹‘ •—„Œ‡…– –‘ ‡…–‹‘ ͳͳȋʹȌ ‹– ‹• ‡‘—‰Š –‘ ‹˜‡•– ‹
‘˜‡”‡–
•‡…—”‹–‹‡•‡–…Ǥǡ‘Ž›–Šƒ–’ƒ”–‘ˆ–Š‡—•’‡–„ƒŽƒ…‡™Š‹…ŠˆƒŽŽ•‘˜‡”ƒ†ƒ„‘˜‡ͳͷΨ‘ˆ–Š‡–‘–ƒŽ‹…‘‡†‡”‹˜‡†
ˆ”‘–Š‡’”‘’‡”–›Š‡Ž†—†‡”–”—•–[C.I.T. v. H.H. Marthanda Varma Elayaraja of Travancore Trust and others (1981)
129 I.T.R. 191 (Ker.)]Ǥ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 443

‡…–‹‘ͳͳȋ͵Ȍ’”‘˜‹†‡•–Šƒ–ǣ
ȋ‹Ȍ ‹ˆ–Š‡‹…‘‡ƒ……——Žƒ–‡†ˆ‘”–Š‡•’‡…‹ϐ‹…’—”’‘•‡—†‡”‡…–‹‘ͳͳȋʹȌ‹•ƒ’’Ž‹‡†–‘’—”’‘•‡•‘–Š‡”–Šƒ
…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•ǡ‘”…‡ƒ•‡•–‘„‡ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ˆ‘”ƒ’’Ž‹…ƒ–‹‘–Š‡”‡–‘ǡ‹–™‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡
–‘–ƒšƒ•‹…‘‡‘ˆ–Šƒ–›‡ƒ”Ǥ —”–Š‡”ǡ•—…Šƒ……——Žƒ–‡†‹…‘‡™‹ŽŽ„‡…‘‡Ž‹ƒ„Ž‡–‘„‡–ƒš‡†‹ˆǡ
ȋ‹‹Ȍ ‹–…‡ƒ•‡•–‘”‡ƒ‹‹˜‡•–‡†‹ƒ›•‡…—”‹–›‘”†‡’‘•‹–‡†‹–Š‡ƒ‡”’”‘˜‹†‡†—†‡”‡…–‹‘ͳͳȋͷȌǡ‘”
ȋ‹‹‹Ȍ ‹–‹•‘–—–‹Ž‹•‡†ˆ‘”–Š‡’—”’‘•‡ˆ‘”™Š‹…Š‹–‹••‘ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–†—”‹‰–Š‡•’‡…‹ϐ‹‡†’‡”‹‘†ǡ‘”
‹–Š‡›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡‡š’‹”›–Š‡”‡‘ˆǢ
ȋ‹˜Ȍ ‹•…”‡†‹–‡†‘”’ƒ‹†–‘ƒ›–”—•–‘”‹•–‹–—–‹‘”‡‰‹•–‡”‡†—†‡”‡…–‹‘ͳʹ‘”–‘ƒ›ˆ—†‘”‹•–‹–—–‹‘
‘” –”—•– ‘” ƒ› —‹˜‡”•‹–› ‘” ‘–Š‡” ‡†—…ƒ–‹‘ƒŽ ‹•–‹–—–‹‘ ‘” ƒ› Š‘•’‹–ƒŽ ‘” ‘–Š‡” ‡†‹…ƒŽ ‹•–‹–—–‹‘
”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹˜Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ˜Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ˜‹Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ˜‹ƒȌ‘ˆ…Žƒ—•‡ȋʹ͵Ȍ‘ˆ
‡…–‹‘ͳͲǤ

‹–•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š‹–…‡ƒ•‡•–‘”‡ƒ‹•‘‹˜‡•–‡†‘”†‡’‘•‹–‡†‘”‹•
‘–•‘—–‹Ž‹•‡†ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
‡…–‹‘ͳͳȋ͵Ȍ’”‘˜‹†‡•–Šƒ–™Š‡”‡†—‡–‘…‹”…—•–ƒ…‡•„‡›‘†–Š‡…‘–”‘Ž‘ˆ–Š‡’‡”•‘‹”‡…‡‹’–‘ˆ–Š‡‹…‘‡ǡ
ƒ›‹…‘‡‹˜‡•–‡†‘”†‡’‘•‹–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͳȋʹȌ…ƒ‘–„‡ƒ’’Ž‹‡†ˆ‘”–Š‡
’—”’‘•‡ˆ‘”™Š‹…Š‹–™ƒ•ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ǡ‘ƒƒ’’Ž‹…ƒ–‹‘ƒ†‡–‘Š‹‹–Š‹•
„‡ŠƒŽˆƒŽŽ‘™•—…Š’‡”•‘–‘ƒ’’Ž›•—…Š‹…‘‡ˆ‘”•—…Š‘–Š‡”…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡‹†‹ƒǡƒ•‹••’‡…‹ϐ‹‡†
„›–Š‡’‡”•‘‹–Š‡ƒ’’Ž‹…ƒ–‹‘•—„Œ‡…–ˆ—”–Š‡”–‘–Š‡…‘†‹–‹‘–Šƒ–‹–‹•‹…‘ˆ‘”‹–›™‹–Š–Š‡‘„Œ‡…–•‘ˆ–Š‡–”—•–Ǥ
”‘˜‹†‡†–Šƒ––Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ‘–ƒŽŽ‘™ƒ’’Ž‹…ƒ–‹‘‘ˆ•—…Š‹…‘‡„›™ƒ›‘ˆ’ƒ›‡–‘”…”‡†‹–ƒ†‡ˆ‘”
–Š‡’—”’‘•‡•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ†Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ͳͳǤ
‘”–Š‡’—”’‘•‡•‘ˆ‡…–‹‘ͳͳǡǮ’”‘’‡”–›Š‡Ž†—†‡”–”—•–ǯ‹…Ž—†‡•ƒ„—•‹‡••—†‡”–ƒ‹‰•‘Š‡Ž†ƒ†™Š‡”‡ƒ
…Žƒ‹‹•ƒ†‡–Šƒ––Š‡‹…‘‡‘ˆƒ›•—…Š—†‡”–ƒ‹‰•ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’‡”•‘•‹
”‡…‡‹’––Š‡”‡‘ˆǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽŠƒ˜‡’‘™‡”–‘†‡–‡”‹‡–Š‡‹…‘‡‘ˆ•—…Š—†‡”–ƒ‹‰‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–”‡Žƒ–‹‰–‘ƒ••‡••‡–ƒ†™Š‡”‡ƒ›‹…‘‡•‘†‡–‡”‹‡†‹•‹‡š…‡••
‘ˆ–Š‡‹…‘‡ƒ••Š‘™‹–Š‡ƒ……‘—–•‘ˆ–Š‡—†‡”–ƒ‹‰ǡ•—…Š‡š…‡•••ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ’’Ž‹‡†–‘’—”’‘•‡•
‘–Š‡”–Šƒ…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•Ǥ
”‘˜‹†‡†–Šƒ––Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ‘–ƒŽŽ‘™ƒ’’Ž‹…ƒ–‹‘‘ˆ•—…Š‹…‘‡„›™ƒ›‘ˆ’ƒ›‡–‘”…”‡†‹–ƒ†‡ˆ‘”
–Š‡’—”’‘•‡•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ†Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ‡…–‹‘ͳͳǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‹…ƒ•‡–Š‡–”—•–‘”‹•–‹–—–‹‘ǡ™Š‹…ŠŠƒ•‹˜‡•–‡†‘”†‡’‘•‹–‡†‹–•‹…‘‡‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ…Žƒ—•‡ȋ„Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋʹȌǡ‹•†‹••‘Ž˜‡†ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒŽŽ‘™ƒ’’Ž‹…ƒ–‹‘‘ˆ•—…Š
‹…‘‡ˆ‘”–Š‡’—”’‘•‡•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ†Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋ͵Ȍ‹–Š‡›‡ƒ”‹™Š‹…Š•—…Š–”—•–‘”‹•–‹–—–‹‘™ƒ•
†‹••‘Ž˜‡†Ǥ
—„Ǧ•‡…–‹‘ȋͶȌƒ••—„•–‹–—–‡†„› ‹ƒ…‡…–ǡͳͻͻͳ™‹–Š‡ˆˆ‡…–ˆ”‘ͳǤͶǤͳͻͻʹ•–ƒ–‡•–Šƒ–—„Ǧ•‡…–‹‘•ȋͳȌ‘”‘”ȋ͵Ȍ
‘”ȋ͵Ȍ‘ˆ‡…–‹‘ͳͳ•ŠƒŽŽ‘–ƒ’’Ž›‹”‡Žƒ–‹‘–‘ƒ›„—•‹‡••‹…‘‡‘ˆƒ–”—•–‘”‹•–‹–—–‹‘—Ž‡••–Š‡„—•‹‡••
‹• ‹…‹†‡–ƒŽ –‘ –Š‡ ƒ––ƒ‹‡– ‘ˆ –Š‡ ‘„Œ‡…–‹˜‡• ‘ˆ –Š‡ –”—•– ‘” ‹•–‹–—–‹‘ ƒ† •‡’ƒ”ƒ–‡ „‘‘• ‘ˆ ƒ……‘—–• ƒ”‡
ƒ‹–ƒ‹‡†„›•—…Š–”—•–‘”‹•–‹–—–‹‘‹”‡•’‡…–‘ˆ•—…Š„—•‹‡••Ǥ
‘”•ƒ†‘†‡•‘ˆ˜‡•–‡–ȏ‡…–‹‘ͳͳȋͷȌȐ
Š‡ˆ‘”•ƒ†‘†‡•ˆ‘”‹˜‡•–‹‰ˆ—†•‘ˆ…Šƒ”‹–ƒ„Ž‡ƒ†”‡Ž‹‰‹‘•–”—•–•ƒ†‹•–‹–—–‹‘•ƒ”‡‰‹˜‡Š‡”‡—†‡”ǣ
ȋ‹Ȍ ˜‡•–‡–‹•ƒ˜‹‰…‡”–‹ϐ‹…ƒ–‡•ƒ•†‡ϐ‹‡†‹…Žƒ—•‡ȋ…Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡
‘˜‡”‡–ƒ˜‹‰•‡”–‹ϐ‹…ƒ–‡•
…–ǡ ͳͻͷͻǡ ƒ† ƒ› ‘–Š‡” •‡…—”‹–‹‡• ‘” …‡”–‹ϐ‹…ƒ–‡• ‹••—‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– —†‡” –Š‡ ƒŽŽ
ƒ˜‹‰•…Š‡‡•‘ˆ–Šƒ–
‘˜‡”‡–Ǥ˜‡•–‡–•‹†‹”ƒ‹ƒ•ƒ–”ƒƒ†‹•ƒ‹ƒ•ƒ–”ƒƒŽ•‘“—ƒŽ‹ˆ›
ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‹•‡…–‹‘Ǣ
ȋ‹‹Ȍ †‡’‘•‹–‹ƒ›ƒ……‘—–™‹–Š–Š‡‘•–ˆϐ‹…‡ƒ˜‹‰•ƒǢ
ȋ‹‹‹Ȍ †‡’‘•‹–‹ƒ›ƒ……‘—–™‹–Šƒ•…Š‡†—Ž‡†„ƒ‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‡‰ƒ‰‡†‹…ƒ””›‹‰‘–Š‡„—•‹‡••
‘ˆ„ƒ‹‰ȋ‹…Ž—†‹‰ƒ…‘Ǧ‘’‡”ƒ–‹˜‡Žƒ†‘”–‰ƒ‰‡„ƒ‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡Žƒ††‡˜‡Ž‘’‡–„ƒȌǢ
444 Lesson 7 Ȉ EP-TL

Explanation ǣ–Š‹•…Žƒ—•‡ǡDz•…Š‡†—Ž‡†„ƒdz‡ƒ•–Š‡–ƒ–‡ƒ‘ˆ†‹ƒ…‘•–‹–—–‡†—†‡”–Š‡–ƒ–‡

ƒ‘ˆ†‹ƒ…–ǡͳͻͷͷǡƒ•—„•‹†‹ƒ”›„ƒƒ•†‡ϐ‹‡†‹–Š‡–ƒ–‡ƒ‘ˆ†‹ƒȋ—„•‹†‹ƒ”›ƒ•Ȍ…–ǡ
ͳͻͷͻǡƒ…‘””‡•’‘†‹‰‡™„ƒ…‘•–‹–—–‡†—†‡”‡…–‹‘͵‘ˆ–Š‡ƒ‹‰‘’ƒ‹‡•ȋ…“—‹•‹–‹‘ƒ†
”ƒ•ˆ‡” ‘ˆ †‡”–ƒ‹‰•Ȍ …–ǡ ͳͻ͹Ͳǡ ‘” —†‡” ‡…–‹‘ ͵ ‘ˆ –Š‡ ƒ‹‰ ‘’ƒ‹‡• ȋ…“—‹•‹–‹‘ ƒ†
”ƒ•ˆ‡”‘ˆ†‡”–ƒ‹‰…–ǡͳͻͺͲǡ‘”ƒ›‘–Š‡”„ƒ„‡‹‰ƒ„ƒ‹…Ž—†‡†‹–Š‡‡…‘†…Š‡†—Ž‡–‘–Š‡
‡•‡”˜‡ƒ‘ˆ†‹ƒ…–ǡͳͻ͵ͶǢ
ȋ‹˜Ȍ ˜‡•–‡–‹—‹–•‘ˆ–Š‡‹–”—•–‘ˆ†‹ƒ‡•–ƒ„Ž‹•Š‡†—†‡”–Š‡‹–”—•–‘ˆ†‹ƒ…–ǡͳͻ͸͵Ǥ
ȋ˜Ȍ ˜‡•–‡–‹ƒ›•‡…—”‹–›ˆ‘”‘‡›…”‡ƒ–‡†ƒ†‹••—‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–Ǣ
ȋ˜‹Ȍ ‹˜‡•–‡– ‹ †‡„‡–—”‡• ‹••—‡† „›ǡ ‘” ‘ „‡ŠƒŽˆ ‘ˆǡ ƒ› …‘’ƒ› ‘” …‘”’‘”ƒ–‹‘ „‘–Š –Š‡ ’”‹…‹’ƒŽ
™Š‡”‡‘ˆƒ†–Š‡‹–‡”‡•–™Š‡”‡‘ƒ”‡ˆ—ŽŽ›ƒ†—…‘†‹–‹‘ƒŽŽ›‰—ƒ”ƒ–‡‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”
„›ƒ–ƒ–‡
‘˜‡”‡–Ǣ
ȋ˜‹‹Ȍ ‹˜‡•–‡–‘”†‡’‘•‹–‹ƒ›’—„Ž‹…•‡…–‘”…‘’ƒ›Ǣ
 ”‘˜‹†‡†–Šƒ– ™Š‡”‡ ƒ ‹˜‡•–‡– ‘” †‡’‘•‹– ‹ ƒ› ’—„Ž‹… •‡…–‘” …‘’ƒ› Šƒ• „‡‡ ƒ†‡ ƒ† •—…Š
’—„Ž‹…•‡…–‘”…‘’ƒ›…‡ƒ•‡•–‘„‡ƒ’—„Ž‹…•‡…–‘”…‘’ƒ›ǣ
ȋȌ •—…Š‹˜‡•–‡–ƒ†‡‹–Š‡•Šƒ”‡•‘ˆ•—…Š…‘’ƒ›•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ‹˜‡•–‡–ƒ†‡
—†‡”–Š‹•…Žƒ—•‡ˆ‘”ƒ’‡”‹‘†‘ˆ–Š”‡‡›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š’—„Ž‹…•‡…–‘”…‘’ƒ›
…‡ƒ•‡•–‘„‡ƒ’—„Ž‹…•‡…–‘”…‘’ƒ›Ǣ
 ˜‡•–‡– ‹ †‡„– ‹•–”—‡–• ‹••—‡† „› ƒ† ‹ˆ”ƒ•–”—…–—”‡ ‹ƒ…‡ ‘’ƒ› ”‡‰‹•–‡”‡† ™‹–Š
Ǥ
ȋ„Ȍ •—…Š‘–Š‡”‹˜‡•–‡–‘”†‡’‘•‹–•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ‹˜‡•–‡–‘”†‡’‘•‹–ƒ†‡—†‡”–Š‹•
…Žƒ—•‡ˆ‘”–Š‡’‡”‹‘†—’–‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š‹˜‡•–‡–‘”†‡’‘•‹–„‡…‘‡•”‡’ƒ›ƒ„Ž‡„›
•—…Š…‘’ƒ›Ǣ
ȋ˜‹‹‹Ȍ †‡’‘•‹–•™‹–Š‘”‹˜‡•–‡–‹ƒ›„‘†•‹••—‡†„›ƒϐ‹ƒ…‹ƒŽ…‘”’‘”ƒ–‹‘™Š‹…Š‹•‡‰ƒ‰‡†‹’”‘˜‹†‹‰
Ž‘‰Ǧ–‡”ϐ‹ƒ…‡ˆ‘”‹†—•–”‹ƒŽ†‡˜‡Ž‘’‡–‹†‹ƒƒ†™Š‹…Š‹•‡Ž‹‰‹„Ž‡ˆ‘”†‡†—…–‹‘—†‡”…Žƒ—•‡
ȋ˜‹‹‹Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘͵͸Ǣ
ȋ‹šȌ †‡’‘•‹–•™‹–Š‘”‹˜‡•–‡–‹ƒ›„‘†•‹••—‡†„›ƒ’—„Ž‹……‘’ƒ›ˆ‘”‡†ƒ†”‡‰‹•–‡”‡†‹†‹ƒ™‹–Š
–Š‡ƒ‹‘„Œ‡…–‘ˆ…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ’”‘˜‹†‹‰Ž‘‰Ǧ–‡”ϐ‹ƒ…‡‘”…‘•–”—…–‹‘‘”’—”…Šƒ•‡‘ˆ
Š‘—•‡• ‹ †‹ƒ ˆ‘” ”‡•‹†‡–‹ƒŽ ’—”’‘•‡• ƒ† ™Š‹…Š ‹• ƒ’’”‘˜‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ˆ‘” –Š‡
’—”’‘•‡•‘ˆ…Žƒ—•‡ȋ˜‹‹‹Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘͵͸Ǣ
ȋ‹šƒȌ †‡’‘•‹–•™‹–Š‘”‹˜‡•–‡–‹ƒ›„‘†•‹••—‡†„›ƒ’—„Ž‹……‘’ƒ›ˆ‘”‡†ƒ†”‡‰‹•–‡”‡†‹†‹ƒ™‹–Š
–Š‡ƒ‹‘„Œ‡…–‘ˆ…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ’”‘˜‹†‹‰Ž‘‰Ǧ–‡”ϐ‹ƒ…‡ˆ‘”—”„ƒ‹ˆ”ƒ•–”—…–—”‡‹
†‹ƒǤ
Explanationǣ ‘”–Š‡’—”’‘•‡‘ˆ–Š‹•…Žƒ—•‡ǣ
ȋƒȌ DzŽ‘‰Ǧ–‡”ϐ‹ƒ…‡dz‡ƒ•ƒ›Ž‘ƒ‘”ƒ†˜ƒ…‡™Š‡”‡–Š‡–‡”•—†‡”™Š‹…Š‘‡›•ƒ”‡Ž‘ƒ‡†
‘”ƒ†˜ƒ…‡†’”‘˜‹†‡ˆ‘””‡’ƒ›‡–ƒŽ‘‰™‹–Š‹–‡”‡•––Š‡”‡‘ˆ†—”‹‰ƒ’‡”‹‘†‘ˆ‘–Ž‡••–Šƒϐ‹˜‡
›‡ƒ”•Ǣ
ȋ„Ȍ Dz’—„Ž‹……‘’ƒ›dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹‡…–‹‘͵‘ˆ–Š‡‘’ƒ‹‡•…–ǡͳͻͷ͸Ǣ
ȋ…Ȍ Dz—”„ƒ ‹ˆ”ƒ•–”—…–—”‡dz ‡ƒ• ƒ ’”‘Œ‡…– ˆ‘” ’”‘˜‹†‹‰ ’‘–ƒ„Ž‡ ™ƒ–‡” •—’’Ž›ǡ •ƒ‹–ƒ–‹‘ ƒ†
•‡™‡”ƒ‰‡ǡ†”ƒ‹ƒ‰‡ǡ•‘Ž‹†™ƒ•–‡ƒƒ‰‡‡–ǡ”‘ƒ†•ǡ„”‹†‰‡•ƒ†ϐŽ›‘˜‡”•‘”—”„ƒ–”ƒ•’‘”–Ǥ
ȋšȌ ˜‡•–‡–‹‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ
ExplanationǣDz‘˜ƒ„Ž‡’”‘’‡”–›dz†‘‡•‘–‹…Ž—†‡ƒ›ƒ…Š‹‡”›‘”’Žƒ–ȋ‘–Š‡”–Šƒƒ…Š‹‡”›‘”
’Žƒ–‹•–ƒŽŽ‡†‹ƒ„—‹Ž†‹‰ˆ‘”–Š‡…‘˜‡‹‡–‘……—’ƒ–‹‘‘ˆ–Š‡„—‹Ž†‹‰Ȍ‡˜‡–Š‘—‰Šƒ––ƒ…Š‡†–‘ǡ‘”
’‡”ƒ‡–Ž›ˆƒ•–‡‡†–‘ǡƒ›–Š‹‰ƒ––ƒ…Š‡†–‘–Š‡‡ƒ”–ŠǢ
ȋš‹Ȍ †‡’‘•‹–•™‹–Š–Š‡†—•–”‹ƒŽ‡˜‡Ž‘’‡–ƒ‘ˆ†‹ƒ‡•–ƒ„Ž‹•Š‡†—†‡”–Š‡†—•–”‹ƒŽ‡˜‡Ž‘’‡–
ƒ‘ˆ†‹ƒ…–ǡͳͻ͸ͶǢ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 445

ȋš‹‹Ȍ ƒ›‘–Š‡”ˆ‘”‘”‘†‡‘ˆ‹˜‡•–‡–‘”†‡’‘•‹–ƒ•ƒ›„‡’”‡•…”‹„‡†‹…Ž—†‹‰‹˜‡•–‡–•‹—‹–•‘ˆ
—–—ƒŽ —†ƒ†”ƒ•ˆ‡”‘ˆ‡’‘•‹–•–‘—„Ž‹………‘—–‘ˆ†‹ƒǤ

Š‡”‡ƒ›‹…‘‡‹•”‡“—‹”‡†–‘„‡ƒ’’Ž‹‡†‘”ƒ……——Žƒ–‡†‘”•‡–ƒ’ƒ”–ˆ‘”ƒ’’Ž‹…ƒ–‹‘ǡ–Š‡ǡˆ‘”•—…Š’—”’‘•‡•–Š‡
‹…‘‡•ŠƒŽŽ„‡†‡–‡”‹‡†™‹–Š‘—–ƒ›†‡†—…–‹‘‘”ƒŽŽ‘™ƒ…‡„›™ƒ›‘ˆ†‡’”‡…‹ƒ–‹‘‘”‘–Š‡”™‹•‡‹”‡•’‡…–‘ˆ
ƒ›ƒ••‡–ǡƒ…“—‹•‹–‹‘‘ˆ™Š‹…ŠŠƒ•„‡‡…Žƒ‹‡†ƒ•ƒƒ’’Ž‹…ƒ–‹‘‘ˆ‹…‘‡—†‡”–Š‹••‡…–‹‘‹–Š‡•ƒ‡‘”ƒ›
‘–Š‡”’”‡˜‹‘—•›‡ƒ”ȏ‡…–‹‘ͳͳȋ͸ȌȐǤ
Š‡”‡ƒ–”—•–‘”ƒ‹•–‹–—–‹‘Šƒ•„‡‡‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘—†‡”…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳʹ‘”
Šƒ•‘„–ƒ‹‡†”‡‰‹•–”ƒ–‹‘ƒ–ƒ›–‹‡—†‡”•‡…–‹‘ͳʹƒ†–Š‡•ƒ‹†”‡‰‹•–”ƒ–‹‘‹•‹ˆ‘”…‡ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”ǡ
–Š‡ǡ‘–Š‹‰…‘–ƒ‹‡†‹•‡…–‹‘ͳͲȏ‘–Š‡”–Šƒ…Žƒ—•‡ȋͳȌƒ†…Žƒ—•‡ȋʹ͵Ȍ–Š‡”‡‘ˆȐ•ŠƒŽŽ‘’‡”ƒ–‡–‘‡š…Ž—†‡ƒ›
‹…‘‡†‡”‹˜‡†ˆ”‘–Š‡’”‘’‡”–›Š‡Ž†—†‡”–”—•–ˆ”‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’‡”•‘‹”‡…‡‹’––Š‡”‡‘ˆˆ‘”–Šƒ–
’”‡˜‹‘—•›‡ƒ”ȏ‡…–‹‘ͳͳȋ͸ȌȐǤ
…‘‡‘ˆ”—•–•‘”•–‹–—–‹‘•ˆ”‘‘–”‹„—–‹‘•ȏ‡…–‹‘ͳʹȐ
Š‡‹…‘‡‘ˆƒ–”—•–„›™ƒ›‘ˆ˜‘Ž—–ƒ”›…‘–”‹„—–‹‘•™‘—Ž†ƒŽ•‘„‡–”‡ƒ–‡†ˆ‘”ƒŽŽ’—”’‘•‡•ƒ•‹…‘‡†‡‡‡†–‘
Šƒ˜‡„‡‡†‡”‹˜‡†„›–Š‡–”—•–ˆ”‘’”‘’‡”–›Š‡Ž†„›‹–—†‡”–”—•–‡š…‡’–ǡŠ‘™‡˜‡”ǡ‹…ƒ•‡™Š‡”‡–Š‡˜‘Ž—–ƒ”›
…‘–”‹„—–‹‘‹•”‡…‡‹˜‡†™‹–Šƒ•’‡…‹ϐ‹…†‹”‡…–‹‘–Šƒ–‹–•ŠƒŽŽˆ‘”’ƒ”–‘ˆ–Š‡…‘”’—•‘ˆ–Š‡–”—•–Ǥ•ƒ”‡•—Ž–ǡ˜‘Ž—–ƒ”›
…‘–”‹„—–‹‘”‡…‡‹˜‡†„›ƒ–”—•–•Š‘—Ž†ƒŽ•‘„‡ƒ’’Ž‹‡†ˆ‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•„‡ˆ‘”‡–Š‡‡†‘ˆ–Š‡ƒ……‘—–‹‰›‡ƒ”
‘”™‹–Š‹͵‘–Š•ˆ‘ŽŽ‘™‹‰•‘–Šƒ–‹…‘‡Ǧ–ƒš‡š‡’–‹‘…‘—Ž†„‡ƒ˜ƒ‹Ž‡†‘ˆǤ‘™‡˜‡”ǡ˜‘Ž—–ƒ”›…‘–”‹„—–‹‘•
…‘—Ž†„‡ƒ……——Žƒ–‡†ˆ‘”ˆ—–—”‡‘„Ž‹‰ƒ–‹‘ˆ‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•‹–Š‡•ƒ‡ƒ‡”ƒ••’‡…‹ϐ‹‡†‡ƒ”Ž‹‡”Ǥ
Š‡˜ƒŽ—‡‘ˆƒ›•‡”˜‹…‡•ǡ„‡‹‰‡†‹…ƒŽ‘”‡†—…ƒ–‹‘ƒŽ•‡”˜‹…‡•ǡƒ†‡ƒ˜ƒ‹Žƒ„Ž‡„›ƒ›…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•–”—•–
”—‹‰ƒŠ‘•’‹–ƒŽ‘”‡†‹…ƒŽ‹•–‹–—–‹‘‘”ƒ‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘ǡ–‘ƒ›’‡”•‘”‡ˆ‡””‡†–‘‹Žƒ—•‡ȋƒȌ‘”
Žƒ—•‡ȋ„Ȍ‘”Žƒ—•‡ȋ…Ȍ‘”Žƒ—•‡ȋ……Ȍ‘”Žƒ—•‡ȋ†Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ‡…–‹‘ͳ͵ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡‹…‘‡
‘ˆ •—…Š –”—•– ‘” ‹•–‹–—–‹‘ †‡”‹˜‡† ˆ”‘ ’”‘’‡”–› Š‡Ž† —†‡” –”—•– ™Š‘ŽŽ› ˆ‘” …Šƒ”‹–ƒ„Ž‡ ‘” ”‡Ž‹‰‹‘—• ’—”’‘•‡•
†—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š •—…Š •‡”˜‹…‡• ƒ”‡ •‘ ’”‘˜‹†‡† ƒ† •ŠƒŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ ‹…‘‡Ǧ–ƒš
‘–™‹–Š•–ƒ†‹‰–Š‡’”‘˜‹•‹‘•‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͳͳǤ
Explanationǣ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ•‡…–‹‘ǡ–Š‡‡š’”‡••‹‘Dz˜ƒŽ—‡dz•ŠƒŽŽ„‡–Š‡˜ƒŽ—‡‘ˆƒ›„‡‡ϐ‹–‘”ˆƒ…‹Ž‹–›
‰”ƒ–‡†‘”’”‘˜‹†‡†ˆ”‡‡‘ˆ…‘•–‘”ƒ–…‘…‡••‹‘ƒŽ”ƒ–‡–‘ƒ›’‡”•‘”‡ˆ‡””‡†–‘‹Žƒ—•‡ȋƒȌ‘”Žƒ—•‡‘”Žƒ—•‡
ȋ…Ȍ‘”Žƒ—•‡ȋ……Ȍ‘”Žƒ—•‡ȋ†Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ‡…–‹‘ͳ͵Ǥ
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹‡…–‹‘ͳͳǡƒ›ƒ‘—–‘ˆ†‘ƒ–‹‘”‡…‡‹˜‡†„›–Š‡–”—•–‘”‹•–‹–—–‹‘‹
–‡”•‘ˆŽƒ—•‡ȋ†Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ͺͲ
™Š‹…ŠŠƒ•„‡‡—–‹Ž‹•‡†ˆ‘”’—”’‘•‡•‘–Š‡”–Šƒ’”‘˜‹†‹‰
”‡Ž‹‡ˆ–‘–Š‡˜‹…–‹•‘ˆ‡ƒ”–Š“—ƒ‡‹
—Œƒ”ƒ–‘”™Š‹…Š”‡ƒ‹•——–‹Ž‹•‡†‹–‡”•‘ˆ—„Ǧ•‡…–‹‘ͷȋȌ‘ˆ‡…–‹‘
ͺͲ
‹”‡•’‡…–‘ˆ™Š‹…Šƒ……‘—–•‘ˆ‹…‘‡ƒ†‡š’‡†‹–—”‡Šƒ˜‡‘–„‡‡”‡†‡”‡†–‘–Š‡ƒ—–Š‘”‹–›’”‡•…”‹„‡†
—†‡”…Žƒ—•‡ȋ˜Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ–Šƒ–•‡…–‹‘ǡ‹–Š‡ƒ‡”•’‡…‹ϐ‹‡†‹–Šƒ–…Žƒ—•‡ǡƒ†‘––”ƒ•ˆ‡””‡†–‘–Š‡
”‹‡‹‹•–‡”ǯ•ƒ–‹‘ƒŽ‡Ž‹‡ˆ —†‘‘”„‡ˆ‘”‡–Š‡͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͲͶ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ
–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†•ŠƒŽŽƒ……‘”†‹‰Ž›„‡…Šƒ”‰‡†–‘–ƒšǤ

 
Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘• ͳͳ ƒ† ͳʹ •ŠƒŽŽ ‘– ƒ’’Ž› ‹ ”‡Žƒ–‹‘ –‘ ƒ› –”—•– ‘” ‹•–‹–—–‹‘ —Ž‡•• –Š‡ ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ƒ”‡ˆ—Žϐ‹ŽŽ‡†ǣ
ͳǤ Š‡’‡”•‘‹”‡…‡‹’–‘ˆ–Š‡‹…‘‡Šƒ•ƒ†‡ƒƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘‹
–Š‡ ’”‡•…”‹„‡† ˆ‘” ƒ† ƒ‡” –‘ –Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” ƒ† •—…Š –”—•– ‘”
‹•–‹–—–‹‘‹•”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹǢ
ʹǤ –Š‡’‡”•‘‹”‡…‡‹’–‘ˆ–Š‡‹…‘‡Šƒ•ƒ†‡ƒƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ǡƒ†
•—„•‡“—‡–Ž›ǡ ‹– Šƒ• ƒ†‘’–‡† ‘” —†‡”–ƒ‡ ‘†‹ϐ‹…ƒ–‹‘• ‘ˆ –Š‡ ‘„Œ‡…–• ™Š‹…Š †‘ ‘– …‘ˆ‘” –‘ –Š‡
…‘†‹–‹‘•‘ˆ”‡‰‹•–”ƒ–‹‘ǡ‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†ƒ‡”ǡ™‹–Š‹ƒ’‡”‹‘†‘ˆ͵Ͳ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ
•ƒ‹†ƒ†‘’–‹‘‘”‘†‹ϐ‹…ƒ–‹‘ǡ–‘–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ†•—…Š–”—•–‘”‹•–‹–—–‹‘
‹•”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹǢ
͵Ǥ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†ƒ„‘˜‡ǡ–Š‡’‡”•‘‹”‡…‡‹’–‘ˆ–Š‡‹…‘‡Šƒ•ƒ†‡ƒƒ’’Ž‹…ƒ–‹‘
‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†ƒ‡”–‘–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡˆ‘””‡‰‹•–”ƒ–‹‘‘ˆ
–Š‡–”—•–‘”‹•–‹–—–‹‘ǣ
 446 Lesson 7 Ȉ EP-TL

ȋ‹Ȍ ™Š‡”‡–Š‡–”—•–‘”‹•–‹–—–‹‘‹•”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹȏƒ•‹–•–‘‘†‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡‹–•
ƒ‡†‡– „› –Š‡ ‹ƒ…‡ ȋ‘Ǥ ʹȌ …–ǡ ͳͻͻ͸ ‘” —†‡” •‡…–‹‘ ͳʹǡ ȏƒ• ‹– •–‘‘† ‹‡†‹ƒ–‡Ž›
„‡ˆ‘”‡‹–•ƒ‡†‡–„›–Š‡ ‹ƒ…‡…–ǡʹͲʹͲȐ™‹–Š‹–Š”‡‡‘–Š•ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‹•
…Žƒ—•‡Šƒ•…‘‡‹–‘ˆ‘”…‡Ǣ
ȋ‹‹Ȍ ™Š‡”‡–Š‡–”—•–‘”‹•–‹–—–‹‘‹•”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹƒ†–Š‡’‡”‹‘†‘ˆ–Š‡•ƒ‹†”‡‰‹•–”ƒ–‹‘
‹•†—‡–‘‡š’‹”‡ǡƒ–Ž‡ƒ•–•‹š‘–Š•’”‹‘”–‘‡š’‹”›‘ˆ–Š‡•ƒ‹†’‡”‹‘†Ǣ
ȋ‹‹‹Ȍ ™Š‡”‡–Š‡–”—•–‘”‹•–‹–—–‹‘Šƒ•„‡‡’”‘˜‹•‹‘ƒŽŽ›”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹǡƒ–Ž‡ƒ•–•‹š
‘–Š• ’”‹‘” –‘ ‡š’‹”› ‘ˆ ’‡”‹‘† ‘ˆ –Š‡ ’”‘˜‹•‹‘ƒŽ ”‡‰‹•–”ƒ–‹‘ ‘” ™‹–Š‹ •‹š ‘–Š• ‘ˆ
…‘‡…‡‡–‘ˆ‹–•ƒ…–‹˜‹–‹‡•ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǣ
ȋ‹˜Ȍ ™Š‡”‡”‡‰‹•–”ƒ–‹‘‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘Šƒ•„‡…‘‡‹‘’‡”ƒ–‹˜‡†—‡–‘–Š‡ϐ‹”•–’”‘˜‹•‘–‘
•—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ•‡…–‹‘ͳͳǡƒ–Ž‡ƒ•–•‹š‘–Š•’”‹‘”–‘–Š‡…‘‡…‡‡–‘ˆ–Š‡ƒ••‡••‡–
›‡ƒ”ˆ”‘™Š‹…Š–Š‡•ƒ‹†”‡‰‹•–”ƒ–‹‘‹••‘—‰Š––‘„‡ƒ†‡‘’‡”ƒ–‹˜‡Ǣ
ȋ˜Ȍ ™Š‡”‡–Š‡–”—•–‘”‹•–‹–—–‹‘Šƒ•ƒ†‘’–‡†‘”—†‡”–ƒ‡‘†‹ϐ‹…ƒ–‹‘•‘ˆ–Š‡‘„Œ‡…–•™Š‹…Š†‘‘–
…‘ˆ‘”–‘–Š‡…‘†‹–‹‘•‘ˆ”‡‰‹•–”ƒ–‹‘ǡ™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡•ƒ‹†
ƒ†‘’–‹‘‘”‘†‹ϐ‹…ƒ–‹‘Ǣ
ȋ˜‹Ȍ ‹ƒ›‘–Š‡”…ƒ•‡ǡƒ–Ž‡ƒ•–‘‡‘–Š’”‹‘”–‘–Š‡…‘‡…‡‡–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘
–Š‡ ƒ••‡••‡– ›‡ƒ” ˆ”‘ ™Š‹…Š –Š‡ •ƒ‹† ”‡‰‹•–”ƒ–‹‘ ‹• •‘—‰Š–ǡ ƒ† •—…Š –”—•– ‘” ‹•–‹–—–‹‘ ‹•
”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹǢȏŽƒ—•‡ȋƒ…Ȍ‹•‡”–‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
ȋͶȌ Š‡”‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ƒ•…‘’—–‡†—†‡”–Š‹•…–™‹–Š‘—–‰‹˜‹‰‡ˆˆ‡…––‘–Š‡
’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͳƒ†•‡…–‹‘ͳʹ‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ
–ƒš‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ–Š‡ƒ……‘—–•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ˆ‘”–Šƒ–›‡ƒ”Šƒ˜‡„‡‡ƒ—†‹–‡†„›ƒ
ƒ……‘—–ƒ–ƒ•†‡ϐ‹‡†‹–Š‡š’Žƒƒ–‹‘–‘•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ʹͺͺƒ†–Š‡’‡”•‘‹”‡…‡‹’–‘ˆ–Š‡
‹…‘‡ˆ—”‹•Š‡•ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”–Š‡”‡’‘”–‘ˆ•—…Š
ƒ—†‹–‹–Š‡’”‡•…”‹„‡†ˆ‘”†—Ž›•‹‰‡†ƒ†˜‡”‹ϐ‹‡†„›•—…Šƒ……‘—–ƒ–ƒ†•‡––‹‰ˆ‘”–Š•—…Š’ƒ”–‹…—Žƒ”•
ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋͷȌ Š‡’‡”•‘‹”‡…‡‹’–‘ˆ–Š‡‹…‘‡Šƒ•ˆ—”‹•Š‡†–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‹ƒ……‘”†ƒ…‡
™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ͳ͵ͻǡ™‹–Š‹–Š‡–‹‡ƒŽŽ‘™‡†—†‡”–Šƒ–•‡…–‹‘Ǥ

Š‡”‡ƒƒ’’Ž‹…ƒ–‹‘Šƒ•„‡‡ƒ†‡ǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•ͳͳƒ†ͳʹ•ŠƒŽŽƒ’’Ž›‹”‡Žƒ–‹‘–‘–Š‡‹…‘‡‘ˆ
•—…Š–”—•–‘”‹•–‹–—–‹‘ˆ”‘–Š‡ƒ••‡••‡–›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š•—…Šƒ’’Ž‹…ƒ–‹‘
‹•ƒ†‡Ǥ
ȏ”‘˜‹†‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•ͳͳƒ†ͳʹ•ŠƒŽŽƒ’’Ž›–‘ƒ–”—•–‘”‹•–‹–—–‹‘ǡ™Š‡”‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹•
ƒ†‡—†‡”Ȅ
ȋƒȌ •—„Ǧ…Žƒ—•‡ ȋ‹Ȍ ‘ˆ …Žƒ—•‡ ȋƒ…Ȍ ‘ˆ •—„Ǧ•‡…–‹‘ ȋͳȌǡ ˆ”‘ –Š‡ ƒ••‡••‡– ›‡ƒ” ˆ”‘ ™Š‹…Š •—…Š –”—•– ‘”
‹•–‹–—–‹‘™ƒ•‡ƒ”Ž‹‡”‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘Ǣ
ȋ„Ȍ •—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ…Žƒ—•‡ȋƒ…Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌǡˆ”‘–Š‡ϐ‹”•–‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”•ˆ‘”™Š‹…Š‹–™ƒ•
’”‘˜‹•‹‘ƒŽŽ›”‡‰‹•–‡”‡†ǣȏ•‡”–‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ

”‘˜‹†‡†–Šƒ–™Š‡”‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‰”ƒ–‡†–‘–Š‡–”—•–‘”‹•–‹–—–‹‘—†‡”•‡…–‹‘ͳʹ‘”•‡…–‹‘ͳʹǡ
–Š‡ǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•ͳͳƒ†ͳʹ•ŠƒŽŽƒ’’Ž›‹”‡•’‡…–‘ˆƒ›‹…‘‡†‡”‹˜‡†ˆ”‘’”‘’‡”–›Š‡Ž†—†‡”
–”—•– ‘ˆ ƒ› ƒ••‡••‡– ›‡ƒ” ’”‡…‡†‹‰ –Š‡ ƒˆ‘”‡•ƒ‹† ƒ••‡••‡– ›‡ƒ”ǡ ˆ‘” ™Š‹…Š ƒ••‡••‡– ’”‘…‡‡†‹‰• ƒ”‡
’‡†‹‰„‡ˆ‘”‡–Š‡••‡••‹‰ˆϐ‹…‡”ƒ•‘–Š‡†ƒ–‡‘ˆ•—…Š”‡‰‹•–”ƒ–‹‘ƒ†–Š‡‘„Œ‡…–•ƒ†ƒ…–‹˜‹–‹‡•‘ˆ•—…Š–”—•–
‘”‹•–‹–—–‹‘”‡ƒ‹–Š‡•ƒ‡ˆ‘”•—…Š’”‡…‡†‹‰ƒ••‡••‡–›‡ƒ”ǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‘ƒ…–‹‘—†‡”•‡…–‹‘ͳͶ͹•ŠƒŽŽ„‡–ƒ‡„›–Š‡••‡••‹‰ˆϐ‹…‡”‹…ƒ•‡‘ˆ•—…Š–”—•–‘”
‹•–‹–—–‹‘ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”’”‡…‡†‹‰–Š‡ƒˆ‘”‡•ƒ‹†ƒ••‡••‡–›‡ƒ”‘Ž›ˆ‘”‘Ǧ”‡‰‹•–”ƒ–‹‘‘ˆ•—…Š–”—•–
‘”‹•–‹–—–‹‘ˆ‘”–Š‡•ƒ‹†ƒ••‡••‡–›‡ƒ”
—Ž‡ͳ͹‘ˆ–Š‡…‘‡Ǧ–ƒš—Ž‡•ǡͳͻ͸ʹ’”‘˜‹†‡•–Šƒ–ƒƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‘ˆƒ–”—•–•ŠƒŽŽ„‡ƒ†‡‹
†—’Ž‹…ƒ–‡‹ ‘”‘ǤͳͲƒ†•ŠƒŽŽ„‡ƒ……‘’ƒ‹‡†„›–Š‡ˆ‘ŽŽ‘™‹‰†‘…—‡–•ǣ
 Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 447

ȋ‹Ȍ ™Š‡”‡–Š‡–”—•–‹•…”‡ƒ–‡†‘”–Š‡‹•–‹–—–‹‘‹•‡•–ƒ„Ž‹•Š‡†—†‡”ƒ‹•–”—‡–ǡ–Š‡‹•–”—‡–‹‘”‹‰‹ƒŽ
–‘‰‡–Š‡”™‹–Šƒ…‘’›–Š‡”‡‘ˆƒ†™Š‡”‡‹–‹•…”‡ƒ–‡†‘–Š‡”™‹•‡–Šƒ—†‡”ƒ‹•–”—‡–ǡ–Š‡†‘…—‡–
‡˜‹†‡…‹‰–Š‡…”‡ƒ–‹‘‘ˆ–Š‡–”—•–‘”–Š‡‡•–ƒ„Ž‹•Š‡–‘ˆ–Š‡‹•–‹–—–‹‘–‘‰‡–Š‡”™‹–Š‘‡…‘’›–Š‡”‡‘ˆǤ
Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›ƒ……‡’–ƒ…‡”–‹ϐ‹‡†…‘’›‹•–‡ƒ†‘ˆ–Š‡‘”‹‰‹ƒŽ™Š‡”‡
–Š‡‘”‹‰‹ƒŽ…ƒ‘–„‡…‘˜‡‹‡–Ž›’”‘†—…‡†Ǥ
ȋ‹‹Ȍ ™Š‡”‡–Š‡–”—•–‹•‹‡š‹•–‡…‡†—”‹‰ƒ››‡ƒ”‘”›‡ƒ”•’”‹‘”–‘–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘
ˆ‘””‡‰‹•–”ƒ–‹‘‹•ƒ†‡ǡ–™‘…‘’‹‡•‡ƒ…Š‘ˆ–Š‡ƒ……‘—–•‘ˆ–Š‡–”—•–ˆ‘”–Š‡–Š”‡‡›‡ƒ”•ȋ‹‡†‹ƒ–‡Ž›Ȍ
’”‡…‡†‹‰–Š‡›‡ƒ”•‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”™Š‹…Š–Š‡ƒ……‘—–•Šƒ˜‡„‡‡ƒ†‡Ǧ—’Ǥ

”‘…‡†—”‡ˆ‘”‡‰‹•–”ƒ–‹‘ȏ‡…–‹‘ͳʹȐ
‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ —‡ǡʹͲʹͲǤȏ•‡”–‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
–‡”•‘ˆ‡…–‹‘ͳʹǡ‘”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘ǡ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”
•ŠƒŽŽ…ƒŽŽˆ‘”•—…Š†‘…—‡–•‘”‹ˆ‘”ƒ–‹‘ˆ”‘–Š‡–”—•–‘”‹•–‹–—–‹‘ƒ•Š‡–Š‹•‡…‡••ƒ”›‹‘”†‡”–‘•ƒ–‹•ˆ›
Š‹•‡Žˆƒ„‘—––Š‡‰‡—‹‡‡••‘ˆƒ…–‹˜‹–‹‡•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ƒ†ƒ›ƒŽ•‘ƒ‡•—…Š‹“—‹”‹‡•ƒ•Š‡ƒ›
†‡‡‡…‡••ƒ”›‹–Š‹•„‡ŠƒŽˆǤ‡Šƒ•–‘‡‹–Š‡”‰”ƒ–‘”†‡…Ž‹‡”‡‰‹•–”ƒ–‹‘™‹–Š‹•‹š‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡
‘–Š ‹ ™Š‹…Š –Š‡ ƒ’’Ž‹…ƒ–‹‘ ™ƒ• ”‡…‡‹˜‡†Ǥ ˆ ‘ ‘”†‡” ‹• ’ƒ••‡† ™‹–Š‹ –Š‡ •ƒ‹† •‹š ‘–Š• –Š‡ ‹– •ŠƒŽŽ „‡
†‡‡‡†–Šƒ––Š‡–”—•–Šƒ•„‡‡”‡‰‹•–‡”‡†Ǥ
Š‡”‡–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡ƒ…–‹˜‹–‹‡•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ƒ”‡‘–
‰‡—‹‡‘”ƒ”‡‘–…ƒ””‹‡†‘—–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‘„Œ‡…–•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘–Š‡–Š‡…‘‹••‹‘‡”ƒ›
’ƒ••ƒ‘”†‡”‹™”‹–‹‰ˆ‘”–Š‡…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘‰”ƒ–‡†—†‡”•‡…–‹‘ͳʹ‘”—†‡”•‡…–‹‘ͳʹƒˆ–‡”
‰‹˜‹‰ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
—”–Š‡”ǡ™Š‡”‡ƒ–”—•–‘”ƒ‹•–‹–—–‹‘Šƒ•„‡‡‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘‘”Šƒ•‘„–ƒ‹‡†”‡‰‹•–”ƒ–‹‘ƒ–ƒ›–‹‡—†‡”
•‡…–‹‘ͳʹƒ†•—„•‡“—‡–Ž›‹–‹•‘–‹…‡†–Šƒ––Š‡ƒ…–‹˜‹–‹‡•‘ˆ–Š‡–”—•–‘”–Š‡‹•–‹–—–‹‘ƒ”‡„‡‹‰…ƒ””‹‡†‘—–‹ƒ
ƒ‡”–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•ͳͳƒ†ͳʹ†‘‘–ƒ’’Ž›–‘‡š…Ž—†‡‡‹–Š‡”™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡‹…‘‡‘ˆ
•—…Š–”—•–‘”‹•–‹–—–‹‘†—‡–‘‘’‡”ƒ–‹‘‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵ǡ–Š‡ǡ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”–Š‡
‘‹••‹‘‡”ƒ›„›ƒ‘”†‡”‹™”‹–‹‰…ƒ…‡Ž–Š‡”‡‰‹•–”ƒ–‹‘‘ˆ•—…Š–”—•–‘”‹•–‹–—–‹‘Ǥ
‘™‡˜‡”–Š‡”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ‘–„‡…ƒ…‡ŽŽ‡†—†‡”–Š‹••—„Ǧ•‡…–‹‘ǡ‹ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘’”‘˜‡•–Šƒ––Š‡”‡
™ƒ•ƒ”‡ƒ•‘ƒ„Ž‡…ƒ—•‡ˆ‘”–Š‡ƒ…–‹˜‹–‹‡•–‘„‡…ƒ””‹‡†‘—–‹–Š‡•ƒ‹†ƒ‡”Ǥ
”‘…‡†—”‡ˆ‘” ”‡•Š‡‰‹•–”ƒ–‹‘ȏ‡…–‹‘ͳʹȐ
ȋͳȌ Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡ‘”‡…‡‹’–‘ˆƒƒ’’Ž‹…ƒ–‹‘ƒ†‡—†‡”…Žƒ—•‡ȋƒ…Ȍ‘ˆ•—„Ǧ
•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳʹǡ•ŠƒŽŽǡȄ
ȋƒȌ ™Š‡”‡ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ‹• ƒ†‡ —†‡” •—„Ǧ…Žƒ—•‡ ȋ‹Ȍ ‘ˆ –Š‡ •ƒ‹† …Žƒ—•‡ǡ ’ƒ•• ƒ ‘”†‡” ‹ ™”‹–‹‰
”‡‰‹•–‡”‹‰–Š‡–”—•–‘”‹•–‹–—–‹‘ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•Ǣ
ȋ„Ȍ ™Š‡”‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡—†‡”•—„Ǧ…Žƒ—•‡ȋ‹‹Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ‹˜Ȍ‘”•—„Ǧ
…Žƒ—•‡‘ˆ–Š‡•ƒ‹†…Žƒ—•‡ǡȄ
ȋ‹Ȍ …ƒŽŽˆ‘”•—…Š†‘…—‡–•‘”‹ˆ‘”ƒ–‹‘ˆ”‘–Š‡–”—•–‘”‹•–‹–—–‹‘‘”ƒ‡•—…Š‹“—‹”‹‡•
ƒ•Š‡–Š‹•‡…‡••ƒ”›‹‘”†‡”–‘•ƒ–‹•ˆ›Š‹•‡Žˆƒ„‘—–Ȅ
ȋȌ –Š‡‰‡—‹‡‡••‘ˆƒ…–‹˜‹–‹‡•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘Ǣƒ†
ȋȌ –Š‡…‘’Ž‹ƒ…‡‘ˆ•—…Š”‡“—‹”‡‡–•‘ˆƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡„›
–Š‡–”—•–‘”‹•–‹–—–‹‘ƒ•ƒ”‡ƒ–‡”‹ƒŽˆ‘”–Š‡’—”’‘•‡‘ˆƒ…Š‹‡˜‹‰‹–•‘„Œ‡…–•Ǣƒ†
ȋ‹‹Ȍ ƒˆ–‡”•ƒ–‹•ˆ›‹‰Š‹•‡Žˆƒ„‘—––Š‡‘„Œ‡…–•‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘ƒ†–Š‡‰‡—‹‡‡••‘ˆ
‹–•ƒ…–‹˜‹–‹‡•—†‡”‹–‡ȋȌǡƒ†…‘’Ž‹ƒ…‡‘ˆ–Š‡”‡“—‹”‡‡–•—†‡”‹–‡ȋȌǡ‘ˆ•—„Ǧ
…Žƒ—•‡ȋ‹ȌǡȄ
ȋȌ ’ƒ••ƒ‘”†‡”‹™”‹–‹‰”‡‰‹•–‡”‹‰–Š‡–”—•–‘”‹•–‹–—–‹‘ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•Ǣ
ȋȌ ‹ˆŠ‡‹•‘–•‘•ƒ–‹•ϐ‹‡†ǡ’ƒ••ƒ‘”†‡”‹™”‹–‹‰”‡Œ‡…–‹‰•—…Šƒ’’Ž‹…ƒ–‹‘ƒ†ƒŽ•‘
…ƒ…‡ŽŽ‹‰‹–•”‡‰‹•–”ƒ–‹‘ƒˆ–‡”ƒˆˆ‘”†‹‰ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǣ
 448 Lesson 7 Ȉ EP-TL

ȋ…Ȍ ™Š‡”‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡—†‡”•—„Ǧ…Žƒ—•‡ȋ˜‹Ȍ‘ˆ–Š‡•ƒ‹†…Žƒ—•‡ǡ’ƒ••ƒ‘”†‡”‹™”‹–‹‰
’”‘˜‹•‹‘ƒŽŽ›”‡‰‹•–‡”‹‰–Š‡–”—•–‘”‹•–‹–—–‹‘ˆ‘”ƒ’‡”‹‘†‘ˆ–Š”‡‡›‡ƒ”•ˆ”‘–Š‡ƒ••‡••‡–
›‡ƒ”ˆ”‘™Š‹…Š–Š‡”‡‰‹•–”ƒ–‹‘‹••‘—‰Š–ǡƒ†•‡†ƒ…‘’›‘ˆ•—…Š‘”†‡”–‘–Š‡–”—•–‘”‹•–‹–—–‹‘Ǥ
ȋʹȌ ŽŽ ƒ’’Ž‹…ƒ–‹‘•ǡ ’‡†‹‰ „‡ˆ‘”‡ –Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” ‘ ™Š‹…Š ‘ ‘”†‡” Šƒ•
„‡‡’ƒ••‡†—†‡”…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳʹ„‡ˆ‘”‡–Š‡†ƒ–‡‘™Š‹…Š–Š‹••‡…–‹‘Šƒ•
…‘‡‹–‘ˆ‘”…‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒƒ’’Ž‹…ƒ–‹‘ƒ†‡—†‡”•—„Ǧ…Žƒ—•‡ȋ˜‹Ȍ‘ˆ…Žƒ—•‡ȋƒ…Ȍ‘ˆ•—„Ǧ
•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳʹ‘–Šƒ–†ƒ–‡Ǥ
ȋ͵Ȍ Š‡‘”†‡”—†‡”…Žƒ—•‡ȋƒȌǡ•—„Ǧ…Žƒ—•‡ȋ‹‹Ȍ‘ˆ…Žƒ—•‡ȋ„Ȍƒ†…Žƒ—•‡ȋ…Ȍǡ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ•ŠƒŽŽ„‡’ƒ••‡†ǡ
‹•—…Šˆ‘”ƒ†ƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ„‡ˆ‘”‡‡š’‹”›‘ˆ–Š‡’‡”‹‘†‘ˆ–Š”‡‡‘–Š•ǡ•‹š‘–Š•
ƒ†‘‡‘–Šǡ”‡•’‡…–‹˜‡Ž›ǡ…ƒŽ…—Žƒ–‡†ˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘™ƒ•”‡…‡‹˜‡†Ǥ
ȋͶȌ Š‡”‡”‡‰‹•–”ƒ–‹‘‘ˆƒ–”—•–‘”ƒ‹•–‹–—–‹‘ Šƒ•„‡‡‰”ƒ–‡†—†‡”…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ
•‡…–‹‘ƒ†•—„•‡“—‡–Ž›ǡ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡ƒ…–‹˜‹–‹‡•‘ˆ
•—…Š–”—•–‘”‹•–‹–—–‹‘ƒ”‡‘–‰‡—‹‡‘”ƒ”‡‘–„‡‹‰…ƒ””‹‡†‘—–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‘„Œ‡…–•‘ˆ–Š‡
–”—•–‘”‹•–‹–—–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡŠ‡•ŠƒŽŽ’ƒ••ƒ‘”†‡”‹™”‹–‹‰…ƒ…‡ŽŽ‹‰–Š‡”‡‰‹•–”ƒ–‹‘‘ˆ•—…Š
–”—•–‘”‹•–‹–—–‹‘ƒˆ–‡”ƒˆˆ‘”†‹‰ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
ȋͷȌ ‹–Š‘—–’”‡Œ—†‹…‡–‘–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋͶȌǡ™Š‡”‡”‡‰‹•–”ƒ–‹‘‘ˆƒ–”—•–‘”ƒ‹•–‹–—–‹‘Šƒ•
„‡‡‰”ƒ–‡†—†‡”…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌƒ†•—„•‡“—‡–Ž›ǡ‹–‹•‘–‹…‡†–Šƒ–Ȅ
ȋƒȌ –Š‡ƒ…–‹˜‹–‹‡•‘ˆ–Š‡–”—•–‘”–Š‡‹•–‹–—–‹‘ƒ”‡„‡‹‰…ƒ””‹‡†‘—–‹ƒƒ‡”–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ
•‡…–‹‘•ͳͳƒ†ͳʹ†‘‘–ƒ’’Ž›–‘‡š…Ž—†‡‡‹–Š‡”™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡‹…‘‡‘ˆ•—…Š–”—•–‘”
‹•–‹–—–‹‘†—‡–‘‘’‡”ƒ–‹‘‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͵Ǣ‘”
ȋ„Ȍ –Š‡–”—•–‘”‹•–‹–—–‹‘Šƒ•‘–…‘’Ž‹‡†™‹–Š–Š‡”‡“—‹”‡‡–‘ˆƒ›‘–Š‡”Žƒ™ǡƒ•”‡ˆ‡””‡†–‘‹
‹–‡ȋȌ‘ˆ•—„Ǧ…Žƒ—•‡ȋ‹Ȍ‘ˆ…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌǡƒ†–Š‡‘”†‡”ǡ†‹”‡…–‹‘‘”†‡…”‡‡ǡ„›
™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†ǡ Š‘Ž†‹‰ –Šƒ– •—…Š ‘Ǧ…‘’Ž‹ƒ…‡ Šƒ• ‘……—””‡†ǡ Šƒ• ‡‹–Š‡” ‘– „‡‡
†‹•’—–‡†‘”Šƒ•ƒ––ƒ‹‡†ϐ‹ƒŽ‹–›ǡ–Š‡ǡ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”–Š‡‘‹••‹‘‡”ƒ›ǡ„›
ƒ‘”†‡”‹™”‹–‹‰ǡƒˆ–‡”ƒˆˆ‘”†‹‰ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ǡ…ƒ…‡Ž–Š‡”‡‰‹•–”ƒ–‹‘
‘ˆ•—…Š–”—•–‘”‹•–‹–—–‹‘ǤȐ
ȏ‡…–‹‘ͳʹ•‡”–‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
Levy of tax where the charitable institution ceases to exist or converts into a non-charitable organization
‡…–‹‘•ͳͳƒ†ͳʹ‘ˆ–Š‡…–’”‘˜‹†‡ˆ‘”‡š‡’–‹‘–‘–”—•–•‘”‹•–‹–—–‹‘•‹”‡•’‡…–‘ˆ‹…‘‡†‡”‹˜‡†ˆ”‘
’”‘’‡”–›Š‡Ž†—†‡”–”—•–ƒ†˜‘Ž—–ƒ”›…‘–”‹„—–‹‘•ǡ•—„Œ‡…––‘˜ƒ”‹‘—•…‘†‹–‹‘•…‘–ƒ‹‡†‹–Š‡•ƒ‹†•‡…–‹‘•Ǥ
Š‡’”‹ƒ”›…‘†‹–‹‘ˆ‘”‰”ƒ–‘ˆ‡š‡’–‹‘‹•–Šƒ––Š‡‹…‘‡†‡”‹˜‡†ˆ”‘’”‘’‡”–›Š‡Ž†—†‡”–”—•–•Š‘—Ž†„‡
ƒ’’Ž‹‡†ˆ‘”–Š‡…Šƒ”‹–ƒ„Ž‡’—”’‘•‡•ǡƒ†™Š‡”‡•—…Š‹…‘‡…ƒ‘–„‡ƒ’’Ž‹‡††—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‹–Šƒ•–‘„‡
ƒ……——Žƒ–‡† ƒ† ‹˜‡•–‡† ‹ –Š‡ ‘†‡• ’”‡•…”‹„‡† ƒ† ƒ’’Ž‹‡† ˆ‘” •—…Š ’—”’‘•‡• ‹ ƒ……‘”†ƒ…‡ ™‹–Š ˜ƒ”‹‘—•
…‘†‹–‹‘• ’”‘˜‹†‡† ‹ –Š‡ •‡…–‹‘Ǥ ˆ –Š‡ ƒ……——Žƒ–‡† ‹…‘‡ ‹• ‘– ƒ’’Ž‹‡† ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ …‘†‹–‹‘•
’”‘˜‹†‡†‹–Š‡•ƒ‹†•‡…–‹‘™‹–Š‹ƒ•’‡…‹ϐ‹‡†–‹‡ǡ–Š‡•—…Š‹…‘‡‹•†‡‡‡†–‘„‡–ƒšƒ„Ž‡‹…‘‡‘ˆ–Š‡–”—•–
‘”–Š‡‹•–‹–—–‹‘Ǥ‡…–‹‘ͳʹ’”‘˜‹†‡•ˆ‘””‡‰‹•–”ƒ–‹‘‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘™Š‹…Š‡–‹–Ž‡•–Š‡–‘„‡ƒ„Ž‡–‘
‰‡– –Š‡ „‡‡ϐ‹– ‘ˆ •‡…–‹‘• ͳͳ ƒ† ͳʹǤ – ƒŽ•‘ ’”‘˜‹†‡• –Š‡ …‹”…—•–ƒ…‡• —†‡” ™Š‹…Š –Š‡ ”‡‰‹•–”ƒ–‹‘ …ƒ „‡
…ƒ…‡ŽŽ‡†Ǥ‡…–‹‘ͳ͵‘ˆ–Š‡…–’”‘˜‹†‡•ˆ‘”–Š‡…‹”…—•–ƒ…‡•—†‡”™Š‹…Š‡š‡’–‹‘—†‡”•‡…–‹‘ͳͳ‘”ͳʹ‹
”‡•’‡…–‘ˆ™Š‘Ž‡‘”’ƒ”–‘ˆ‹…‘‡™‘—Ž†‘–„‡ƒ˜ƒ‹Žƒ„Ž‡–‘ƒ–”—•–‘”‹•–‹–—–‹‘Ǥ
 •‘…‹‡–› ‘” ƒ …‘’ƒ› ‘” ƒ –”—•– ‘” ƒ ‹•–‹–—–‹‘ …ƒ””›‹‰ ‘ …Šƒ”‹–ƒ„Ž‡ ƒ…–‹˜‹–› ƒ› ˜‘Ž—–ƒ”‹Ž› ™‹† —’ ‹–•
ƒ…–‹˜‹–‹‡•ƒ††‹••‘Ž˜‡‘”ƒ›ƒŽ•‘‡”‰‡™‹–Šƒ›‘–Š‡”…Šƒ”‹–ƒ„Ž‡‘”‘Ǧ…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘ǡ‘”‹–ƒ›…‘˜‡”–
‹–‘ƒ‘Ǧ…Šƒ”‹–ƒ„Ž‡‘”‰ƒ‹œƒ–‹‘Ǥ•—…Šƒ•‹–—ƒ–‹‘ǡ–Š‡‡š‹•–‹‰Žƒ™†‘‡•‘–’”‘˜‹†‡ƒ›…Žƒ”‹–›ƒ•–‘Š‘™–Š‡
ƒ••‡–•‘ˆ•—…Šƒ…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘•ŠƒŽŽ„‡†‡ƒŽ–™‹–ŠǤ
‘”†‡”–‘‡•—”‡–Šƒ––Š‡‹–‡†‡†’—”’‘•‡‘ˆ‡š‡’–‹‘ƒ˜ƒ‹Ž‡†„›–”—•–‘”‹•–‹–—–‹‘‹•ƒ…Š‹‡˜‡†ǡƒ‡™…Šƒ’–‡”
Šƒ•„‡‡‹–”‘†—…‡†–Šƒ–’”‘˜‹†‡•ˆ‘”Ž‡˜›‘ˆƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš‹…ƒ•‡‘ˆ…‘˜‡”•‹‘‹–‘ǡ‘”‡”‰‡”™‹–Šǡƒ›
‘Ǧ…Šƒ”‹–ƒ„Ž‡ ˆ‘” ‘” ‘ –”ƒ•ˆ‡” ‘ˆ ƒ••‡–• ‘ˆ ƒ …Šƒ”‹–ƒ„Ž‡ ‘”‰ƒ‹œƒ–‹‘ ‘ ‹–• †‹••‘Ž—–‹‘ –‘ ƒ ‘Ǧ …Šƒ”‹–ƒ„Ž‡
‹•–‹–—–‹‘ǤŠ‡‡Ž‡‡–•‘ˆ–Š‡”‡‰‹‡ƒ”‡—†‡”ǣ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 449

ȋ‹Ȍ Š‡ƒ……”‡–‹‘‹‹…‘‡ȋƒ……”‡–‡†‹…‘‡Ȍ‘ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘•ŠƒŽŽ„‡–ƒšƒ„Ž‡‘…‘˜‡”•‹‘‘ˆ
–”—•–‘”‹•–‹–—–‹‘‹–‘ƒˆ‘”‘–‡Ž‹‰‹„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘—Ȁ•ͳʹ‘”‘‡”‰‡”‹–‘ƒ‡–‹–›‘–Šƒ˜‹‰
•‹‹Žƒ”‘„Œ‡…–•ƒ†”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ͳʹ‘”‘‘Ǧ†‹•–”‹„—–‹‘‘ˆƒ••‡–•‘†‹••‘Ž—–‹‘–‘ƒ›
…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘”‡‰‹•–‡”‡†—Ȁ•ͳʹ‘”ƒ’’”‘˜‡†—†‡”•‡…–‹‘ͳͲȋʹ͵Ȍ™‹–Š‹ƒ’‡”‹‘†‘ˆ–™‡Ž˜‡
‘–Š•ˆ”‘†‹••‘Ž—–‹‘Ǥ
ȋ‹‹Ȍ ……”‡–‡†‹…‘‡•ŠƒŽŽ„‡ƒ‘—–‘ˆƒ‰‰”‡‰ƒ–‡‘ˆ–‘–ƒŽƒ••‡–•ƒ•”‡†—…‡†„›–Š‡Ž‹ƒ„‹Ž‹–›ƒ•‘–Š‡•’‡…‹ϐ‹‡†
†ƒ–‡Ǥ Š‡ ‡–Š‘† ‘ˆ ˜ƒŽ—ƒ–‹‘ ‹• ’”‘’‘•‡† –‘ „‡ ’”‡•…”‹„‡† ‹ ”—Ž‡•Ǥ Š‡ ƒ••‡– ƒ† –Š‡ Ž‹ƒ„‹Ž‹–› ‘ˆ –Š‡
…Šƒ”‹–ƒ„Ž‡‘”‰ƒ‹•ƒ–‹‘™Š‹…ŠŠƒ˜‡„‡‡–”ƒ•ˆ‡””‡†–‘ƒ‘–Š‡”…Šƒ”‹–ƒ„Ž‡‘”‰ƒ‹•ƒ–‹‘™‹–Š‹•’‡…‹ϐ‹‡†
–‹‡™‹ŽŽ„‡‡š…Ž—†‡†™Š‹Ž‡…ƒŽ…—Žƒ–‹‰ƒ……”‡–‡†‹…‘‡Ǥ
ȋ‹‹‹Ȍ Š‡–ƒšƒ–‹‘‘ˆƒ……”‡–‡†‹…‘‡•ŠƒŽŽ„‡ƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡Ǥ
ȋ‹˜Ȍ Š‹•Ž‡˜›•ŠƒŽŽ„‡‹ƒ††‹–‹‘–‘ƒ›‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡Šƒ†•‘ˆ–Š‡‡–‹–›Ǥ
ȋ˜Ȍ Š‹•–ƒš•ŠƒŽŽ„‡ϐ‹ƒŽ–ƒšˆ‘”™Š‹…Š‘…”‡†‹–…ƒ„‡–ƒ‡„›–Š‡–”—•–‘”‹•–‹–—–‹‘‘”ƒ›‘–Š‡”’‡”•‘ǡ
ƒ†Ž‹‡ƒ›‘–Š‡”ƒ††‹–‹‘ƒŽ–ƒšǡ‹–•ŠƒŽŽ„‡Ž‡˜‹ƒ„Ž‡‡˜‡‹ˆ–Š‡–”—•–‘”‹•–‹–—–‹‘†‘‡•‘–Šƒ˜‡ƒ›‘–Š‡”
‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
ȋ˜‹Ȍ …ƒ•‡‘ˆˆƒ‹Ž—”‡‘ˆ’ƒ›‡–‘ˆ–ƒš™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡ǡƒ•‹’Ž‡‹–‡”‡•–̷ͳΨ’‡”‘–Š‘”’ƒ”–
‘ˆ‹–•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡ˆ‘”–Š‡’‡”‹‘†‘ˆ‘Ǧ’ƒ›‡–Ǥ
ȋ˜‹‹Ȍ ‘”–Š‡’—”’‘•‡‘ˆ”‡…‘˜‡”›‘ˆ–ƒšƒ†‹–‡”‡•–ǡ–Š‡’”‹…‹’ƒŽ‘ˆϐ‹…‡”‘”–Š‡–”—•–‡‡ƒ†–Š‡–”—•–‘”–Š‡
‹•–‹–—–‹‘•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ••‡••‡‡‹†‡ˆƒ—Ž–ƒ†ƒŽŽ’”‘˜‹•‹‘•”‡Žƒ–‡†–‘–Š‡”‡…‘˜‡”›‘ˆ–ƒš‡•
•ŠƒŽŽƒ’’Ž›Ǥ —”–Š‡”ǡ–Š‡”‡…‹’‹‡–‘ˆƒ••‡–•‘ˆ–Š‡–”—•–ǡ™Š‹…Š‹•‘–ƒ…Šƒ”‹–ƒ„Ž‡‘”‰ƒ‹•ƒ–‹‘ǡ•ŠƒŽŽƒŽ•‘„‡
Ž‹ƒ„Ž‡–‘„‡Š‡Ž†ƒ•ƒ••‡••‡‡‹†‡ˆƒ—Ž–‹…ƒ•‡‘ˆ‘Ǧ’ƒ›‡–‘ˆ–ƒšƒ†‹–‡”‡•–Ǥ‘™‡˜‡”ǡ–Š‡”‡…‹’‹‡–ǯ•
Ž‹ƒ„‹Ž‹–›•ŠƒŽŽ„‡Ž‹‹–‡†–‘–Š‡‡š–‡–‘ˆ–Š‡ƒ••‡–•”‡…‡‹˜‡†Ǥ

LESSON ROUND-UP

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Š‡ –‡” Ǯ‹†— —†‹˜‹†‡† ˆƒ‹Ž›ǯ Šƒ• ‘– „‡‡ †‡ϐ‹‡† ‹ –Š‡ …‘‡Ǧ–ƒš …–Ǥ ‘™‡˜‡”ǡ ‹ ‰‡‡”ƒŽ
’ƒ”Žƒ…‡‹–‡ƒ•ƒ—†‹˜‹†‡†ˆƒ‹Ž›‘ˆ‹†—•Ǥ”‡ƒ–‹‘‘ˆƒ ‹•ƒ
‘†Ǧ‰‹ˆ–‡†’Š‡‘‡‘Ǥ••‘‘
ƒ•ƒƒ””‹‡†‹†—‰‡–•ƒ…Š‹Ž†ǡƒ‡™ …‘‡•‹–‘‡š‹•–‡…‡Ǥ–‹•‘–ƒ–ƒŽŽ‡…‡••ƒ”›–Šƒ– ‡˜‡”› 
—•–Šƒ˜‡Œ‘‹–’”‘’‡”–›‘”ˆƒ‹Ž›‹…‘‡Ǥ

Ȉ ‹†— ‘‹– ƒ‹Ž›…‘•‹•–•‘ˆ‘’ƒ”…‡‡”•Ƭ‡„‡”•Ǥ

Ȉ Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆ–Š‡ˆƒ‹Ž›ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡…‘’—–‡†—†‡”–Š‡”‡Ž‡˜ƒ–
Š‡ƒ†•ȋƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ȍƒ•‹–‹•…‘’—–‡†ˆ‘”‘–Š‡”ƒ••‡••‡‡•Ǥ

Ȉ Ǯƒ”–‹–‹‘ǯ•‹‰‹ϐ‹‡• †‹˜‹•‹‘ ‘ˆ ’”‘’‡”–›Ǥ  –Š‡ …ƒ•‡• ‘ˆ ’”‘’‡”–› …ƒ’ƒ„Ž‡ ‘ˆ ’Š›•‹…ƒŽ †‹˜‹•‹‘ǡ •Šƒ”‡ ‘ˆ
‡ƒ…Š ‡„‡” ‹• †‡–‡”‹‡† „› ƒ‹‰ ’Š›•‹…ƒŽ †‹˜‹•‹‘ –Š‡”‡‘ˆǤ – —•– „‡ ‘–‡† –Šƒ– ƒ †‹˜‹•‹‘ ‘ˆ
‹…‘‡™‹–Š‘—–’Š›•‹…ƒŽ†‹˜‹•‹‘‘ˆ’”‘’‡”–›†‘‡•‘–ƒ‘—––‘’ƒ”–‹–‹‘Ǥ

Ȉ ƒ”–‡”•Š‹’ ‹”ǣ†‡”‡…–‹‘ʹȋʹ͵Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ–Š‡–‡”•Dzϐ‹”dzǡDz’ƒ”–‡”dzǡƒ†Dz’ƒ”–‡”•Š‹’dz

Šƒ˜‡ –Š‡ ‡ƒ‹‰• ”‡•’‡…–‹˜‡Ž› ƒ••‹‰‡† –‘ –Š‡ ‹ –Š‡ †‹ƒ ƒ”–‡”•Š‹’ …–ǡ ͳͻ͵ʹ ƒ† ‹‹–‡†
‹ƒ„‹Ž‹–›ƒ”–‡”•Š‹’…–ǡʹͲͲͺǤ

Ȉ •’‡”–Š‡•…Š‡‡ǡƒ’ƒ”–‡”•Š‹’ϐ‹”•ŠƒŽŽ„‡ƒ••‡••‡†ƒ•ƒϐ‹”‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ

Ǧ Š‡’ƒ”–‡”•Š‹’‹•‡˜‹†‡…‡†„›ƒ‹•–”—‡–‹Ǥ‡Ǥ’ƒ”–‡”•Š‹’†‡‡†Ǥ

Ǧ Š‡‹†‹˜‹†—ƒŽ•Šƒ”‡•‘ˆ–Š‡’ƒ”–‡”•ƒ”‡•’‡…‹ϐ‹‡†‹–Šƒ–‹•–”—‡–Ǥ

Ǧ …‘’›‘ˆ–Š‡’ƒ”–‡”•Š‹’†‡‡†…‡”–‹ϐ‹‡†„›ƒŽŽ–Š‡’ƒ”–‡”•‹™”‹–‹‰ȋ‘–Š‡”–Šƒ–Š‡‹‘”•Ȍ‹•
•—„‹––‡†ƒŽ‘‰™‹–Š–Š‡”‡–—”‘ˆ‹…‘‡‹”‡•’‡…–‘ˆ™Š‹…Šƒ••‡••‡–ƒ•ƒϐ‹”‹•ϐ‹”•–•‘—‰Š–Ǥ
450 Lesson 7 Ȉ EP-TL

Ȉ •’‡”‡…–‹‘ͳͲȋʹȌ‘ˆ–Š‡…–ǡƒ›’‡”•‘™Š‘‹•ƒ’ƒ”–‡”‘ˆƒϐ‹”™Š‹…Š‹•ƒ••‡••‡†ƒ••—…ŠǡŠ‹••Šƒ”‡
‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ϐ‹”™‹ŽŽ‘–„‡‹…Ž—†‡†‹…‘’—–‹‰Š‹•–‘–ƒŽ‹…‘‡Ǥƒ”–‡”‹…Ž—†‡•ƒ‹‘”
ƒ†‹––‡†–‘–Š‡„‡‡ϐ‹–•‘ˆ’ƒ”–‡”•Š‹’ƒ•’‡”‡…–‹‘ʹȋʹ͵Ȍ‘ˆ–Š‡…–Ǥ

Ȉ Š‡ƒŽŽ–Š‡’ƒ”–‡”•‹–Š‡’”‡†‡…‡••‘”ϐ‹”ƒ”‡”‡’Žƒ…‡†„›‡™’ƒ”–‡”•‹–Š‡•—……‡••‘”ϐ‹”ǡ‹–‹•
‘™ƒ••—……‡••‹‘‘ˆ‘‡ϐ‹”„›ƒ‘–Š‡”ϐ‹”Ǥˆƒϐ‹”‹•†‹••‘Ž˜‡†ƒ†•‘‡‘ˆ–Š‡’ƒ”–‡”•–ƒ‡
‘˜‡”–Š‡ϐ‹”ǯ•„—•‹‡••‘”…ƒ””›‘ƒ•‹‹Žƒ”„—•‹‡••™‹–Š‘”™‹–Š‘—–‡™’ƒ”–‡”•ǡ‹–™‘—Ž†„‡ƒ…ƒ•‡
‘ˆ•—……‡••‹‘„›ƒ‡™ϐ‹”Ǥ

Ȉ Š‡”‡ƒ…Šƒ‰‡Šƒ•‘……—””‡†‹–Š‡…‘•–‹–—–‹‘‘ˆƒϐ‹”‘ƒ……‘—–‘ˆ†‡ƒ–Š‘””‡–‹”‡‡–ǡ–Š‡ϐ‹”‹•
‘–‡–‹–Ž‡†–‘…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ•‘—…Š‘ˆ–Š‡Ž‘••’”‘’‘”–‹‘ƒ–‡–‘–Š‡•Šƒ”‡‘ˆƒ”‡–‹”‡†‘”
†‡…‡ƒ•‡†’ƒ”–‡”ƒ•‡š…‡‡†•Š‹••Šƒ”‡‘ˆ’”‘ϐ‹–•ǡ‹ˆƒ›ǡ‹–Š‡ϐ‹”‹”‡•’‡…–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ

Ȉ Ž–‡”ƒ–‡ ‹‹— ƒšǣ ”‘ –Š‡ ƒ••‡••‡– ›‡ƒ” ʹͲͳʹǦͳ͵ ‘™ƒ”†•ǡ ™Š‡”‡ –Š‡ ”‡‰—Žƒ” ‹…‘‡ –ƒš
’ƒ›ƒ„Ž‡ˆ‘”ƒ’”‡˜‹‘—•›‡ƒ”„›ƒ’‡”•‘‘–Š‡”–Šƒƒ…‘’ƒ›‹•Ž‡••–Šƒ–Š‡ƒŽ–‡”ƒ–‡ ‹‹—–ƒš
’ƒ›ƒ„Ž‡ˆ‘”•—…Š’”‡˜‹‘—•›‡ƒ”–Š‡–Š‡ƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡–‘–ƒŽ‹…‘‡‘ˆ•—…Š
’‡”•‘ˆ‘”•—…Š’”‡˜‹‘—•›‡ƒ”ƒ†‹–•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›‹…‘‡–ƒš‘•—…Šƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡̷
ͳͺǤͷΨΪ’Ž—•Š‡ƒŽ–Šƒ†‡†—…ƒ–‹‘…‡••ȋȌ̷ͶΨǤ‹•ƒ’’Ž‹…ƒ„Ž‡‹ˆƒ†Œ—•–‡†–‘–ƒŽ‹…‘‡‡š…‡‡†•
•ǤʹͲŽƒŠǤ

Ȉ ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ǣDz••‘…‹ƒ–‹‘‘ˆ’‡”•‘•dz‡ƒ•ƒƒ••‘…‹ƒ–‹‘‹™Š‹…Š–™‘‘”‘”‡’‡”•‘•Œ‘‹
‹ƒ…‘‘’—”’‘•‡‘”…‘‘ƒ…–‹‘–‘’”‘†—…‡‹…‘‡ǡ’”‘ϐ‹–•‘”‰ƒ‹•Ǥ

Ȉ ‘”–Š‡ˆ‘”ƒ–‹‘‘ˆƒ–Š‡ƒ••‘…‹ƒ–‹‘‡‡†‘–‡…‡••ƒ”‹Ž›„‡‘–Š‡„ƒ•‹•‘ˆƒ…‘–”ƒ…–ǡ…‘•‡– ƒ†
—†‡”•–ƒ†‹‰ƒ›„‡’”‡•—‡†Ǥ

Ȉ ‡…–‹‘ͳ͸͹ƒ‡•–Š‡ˆ‘ŽŽ‘™‹‰’”‘˜‹•‹‘•ƒ•”‡‰ƒ”†•–Š‡‹…‹†‡…‡‘ˆ…Šƒ”‰‡‘ˆ–ƒš‘–Š‡ƒ••‘…‹ƒ–‹‘ ‘ˆ
’‡”•‘•Ǥ

Ȉ Š‡”‡ •Šƒ”‡• ‘ˆ ‡„‡”• ƒ”‡ †‡–‡”‹ƒ–‡ǡ –ƒš ‹• …Šƒ”‰‡ƒ„Ž‡ ‘ –Š‡ ‹…‘‡ ‘ˆ –Š‡ƒ••‘…‹ƒ–‹‘‘ˆ
’‡”•‘•ƒ––Š‡•ƒ‡”ƒ–‡ƒ•ƒ’’Ž‹…ƒ„Ž‡–‘ƒ‹†‹˜‹†—ƒŽǤ‘™‡˜‡”ǡ™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡ ‘ˆƒ›‡„‡”‘ˆ
–Š‡ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ȋ‡š…Ž—†‹‰Š‹••Šƒ”‡‘ˆ‹…‘‡ˆ”‘ –Š‡ ƒ••‘…‹ƒ–‹‘ ‘ˆ
’‡”•‘•Ȍ ‡š…‡‡†• –Š‡ ƒš‹— ƒ‘—– ‘– …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ‹†‹˜‹†—ƒŽǡ–ƒš™‹ŽŽ„‡
…Šƒ”‰‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡‘ˆ͵ͲΨǡ‹Ǥ‡Ǥǡ–Š‡Š‹‰Š‡•–•Žƒ„ƒ’’Ž‹…ƒ„Ž‡
–‘ƒ‹†‹˜‹†—ƒŽǤ

Ȉ Š‡”‡–Š‡•Šƒ”‡•‘ˆ–Š‡‡„‡”•ƒ”‡‹†‡–‡”‹ƒ–‡ǡ–ƒš™‹ŽŽ„‡…Šƒ”‰‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡
ƒ––Š‡ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡ǡ–Šƒ–‹•ǡ–Š‡”ƒ–‡‘ˆ–ƒšƒ•™‡ŽŽƒ••—”…Šƒ”‰‡ǡ‹ˆƒ›ǡƒ’’Ž‹…ƒ„Ž‡–‘–Š‡Š‹‰Š‡•–
•Žƒ„‘ˆ‹…‘‡‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽƒ••’‡…‹ϐ‹‡†‹–Š‡ ‹ƒ…‡…–‘ˆ–Š‡”‡Ž‡˜ƒ–›‡ƒ”

Ȉ ‡…–‹‘ ͸͹ •‡‡• –‘ ’”‘˜‹†‡ ˆ‘” –Š‡ ‡–Š‘† ‘ˆ …‘’—–‹‰ ƒ ‡„‡”ǯ• •Šƒ”‡ ‹ –Š‡ ‹…‘‡ ‘ˆ ƒ
ƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”ƒ„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ǡ™Š‡”‡‹–Š‡•Šƒ”‡•‘ˆ–Š‡‡„‡”•ƒ”‡†‡–‡”‹ƒ–‡ǡ ‹
–Š‡•ƒ‡ƒ‡”ƒ•’”‘˜‹†‡†ˆ‘”‹—„Ǧ•‡…–‹‘•ȋͳȌ–‘ȋ͵Ȍ‘ˆ‡…–‹‘͸͹ˆ‘”…‘’—–‹‰ƒ’ƒ”–‡”ǯ• •Šƒ”‡
‹ƒϐ‹”Ǥ

Ȉ ‘Ǧ‘’‡”ƒ–‹˜‡ ‘…‹‡–› ‡ƒ• ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ”‡‰‹•–‡”‡† —†‡” –Š‡ ‘Ǧ‘’‡”ƒ–‹˜‡ ‘…‹‡–‹‡• …–ǡ
ͳͻͳʹǡ‘”—†‡”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‹ƒ›–ƒ–‡ˆ‘”–Š‡”‡‰‹•–”ƒ–‹‘‘ˆ…‘Ǧ‘’‡”ƒ–‹˜‡
•‘…‹‡–‹‡•Ǥ

Ȉ Š‡ ‹…‘‡ ‘ˆ ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‹• …‘’—–‡† ‹ –Š‡ •ƒ‡ ƒ‡” ƒ• ’”‘˜‹†‡† ˆ‘” ‘–Š‡”
ƒ••‡••‡‡•Ǥ

Ȉ ‡…–‹‘ͺͲ’”‘˜‹†‡•ˆ‘”…‡”–ƒ‹†‡†—…–‹‘•ˆ”‘–Š‡‰”‘••–‘–ƒŽ‹…‘‡‘ˆƒ‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›Ǥ

Ȉ ‡™ƒŽ–‡”ƒ–‹˜‡ƒš•›•–‡‹•‹–”‘†—…‡†ˆ‘”…‘‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•™Ǥ‡ǤˆǤȀʹͳȀʹʹ—Ȁ•ͳͳͷǤ
Lesson 7 Ȉ Computation of Total Income and Tax Liability of Various Entities 451

TEST YOURSELF
ȋThese are meant for recapitulation only. Answers to these questions are not to be submitted for evaluation.Ȍ
—Ž–‹’Ž‡Š‘‹…‡—‡•–‹‘•Dz•dz
ͳǤ Ž–‡”ƒ–‹˜‡ ‹‹— ƒš ȋȌ ‹• ƒ’’Ž‹…ƒ„Ž‡ ‹ˆ ƒ†Œ—•–‡† ‘–ƒŽ …‘‡ ‘ˆ ‹†‹˜‹†—ƒŽǡǡ ƒ”–‹ϐ‹…‹ƒŽ
Œ—”‹•–‹…’‡”•‘ǡ ‹”‡–…Ǥ‡š…‡‡†•ǣ
ȋƒȌ ͳͷŽƒŠ•
ȋƒȌ ʹͲŽƒŠ•
ȋƒȌ ʹͷŽƒŠ•
ȋƒȌ ͳͲŽƒŠ•
•™‡”ǣȋ„Ȍ
ʹǤ Šƒ”‡‹–Š‡’”‘ϐ‹–•‘ˆ–Š‡ϐ‹”‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ’ƒ”–‡”—†‡”–Š‡Š‡ƒ†ǣ
ȋƒȌ ƒŽƒ”›
ȋ„Ȍ —•‹‡••Ƭ”‘ˆ‡••‹‘
ȋ…Ȍ …‘‡ˆ”‘‘–Š‡”•‘—”…‡•
ȋ†Ȍ š‡’–ˆ”‘–ƒš
•™‡”ǣȋ†Ȍ
͵Ǥ ƒŽƒ”›ǡˆ‡‡•ǡ„‘—•”‡…‡‹˜‡†„›ƒ’ƒ”–‡”ˆ”‘–Š‡ϐ‹”‹•ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ’ƒ”–‡”—†‡”–Š‡
Š‡ƒ†ǣ
ȋƒȌ ƒŽƒ”›
ȋ„Ȍ —•‹‡••Ƭ”‘ˆ‡••‹‘
ȋ…Ȍ …‘‡ˆ”‘‘–Š‡”•‘—”…‡•
ȋ†Ȍ š‡’–ˆ”‘–ƒš
•™‡”ǣȋ„Ȍ
ͶǤ …‘‡‡ƒ”‡†ˆ”‘•ƒŽ‡‘ˆDz–”‹†Šƒdz‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆǣ
ȋƒȌ 
ȋ„Ȍ —•„ƒ†‘ˆ•—…Š™‘ƒ
ȋ…Ȍ —…Š™‘ƒŠ‡”•‡Žˆ
ȋ†Ȍ ‘‡‘ˆƒ„‘˜‡
•™‡”ǣȋ…Ȍ
ͷǤ ‡”•‘ƒŽ‡ƒ”‹‰‹…Ž—†‹‰‹…‘‡ˆ”‘‡Žˆ…“—‹”‡†”‘’‡”–›‘ˆƒ‡„‡”‘ˆ–Š‡ ‹•‹…Ž—†‡†‹
…‘‡‘ˆǣ
ȋƒȌ  ‹…‘‡
ȋ„Ȍ ‘ǯ•‹…‘‡
ȋ…Ȍ †‹˜‹†—ƒŽǯ•‹…‘‡
ȋ†Ȍ ‘‡‘ˆ–Š‡•‡
•™‡”ǣȋ…Ȍ
452 Lesson 7 Ȉ EP-TL

  



Ȉ Direct Taxes Law and Practice

—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
—„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES (Including Websites and Video Links)

Ȉ Income Tax Act, 1961:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š

Ȉ Income Tax Rules, 1962:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•Ǧͳͻ͸ʹǤƒ•’š
Ȉ Circulars: Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϐ‹…ƒ–‹‘•Ǥƒ•’š
 Žƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš
Lesson 8 …‹†‡…‡‘‘’ƒ‹‡•
Key Concepts One Learning Objectives
Should Know
‘—†‡”•–ƒ†
Ȉ †‹ƒ‘’ƒ› Ȉ Šƒ–ƒ”‡–Š‡…‘•–‹–—–‹‘ƒŽ’”‘˜‹•‹‘•ˆ‘”‘’ƒ‹‡•™‹–Š”‡‰ƒ”†–‘
Ȉ ‘‡•–‹…‘’ƒ› …‘‡–ƒšǫ
Ȉ Š‡’”‘˜‹•‹‘•”‡Žƒ–‡†–‘‘‡•–‹…ƒ† ‘”‡‹‰‘’ƒ‹‡•
Ȉ ‘”‡‹‰‘’ƒ›
Ȉ Š‡–Š‡’”‘˜‹•‹‘•‘ˆ‹‹—Ž–‡”ƒ–‡ƒšǮǯ•ŠƒŽŽ„‡
Ȉ ‹‹—Ž–‡”ƒ–‡ ƒ’’Ž‹…ƒ„Ž‡ǫ
ƒš Ȉ ”‘˜‹•‹‘”‡Žƒ–‡†–‘“—ƒŽ‹œƒ–‹‘‡˜›
Ȉ ƒ”„‘”‡†‹– Ȉ ’‡…‹ϐ‹…’”‘˜‹•‹‘•”‡Žƒ–‡†–‘ǣ
Ȉ “—ƒŽ‹œƒ–‹‘‡˜› ‘ —›„ƒ…‘ˆŠƒ”‡•
‘ ‘˜‡”•‹‘‘ˆƒ†‹ƒ”ƒ…Š‘ˆƒ ‘”‡‹‰‘’ƒ›‹–‘ƒ
Ȉ —›„ƒ… †‹ƒ•—„•‹†‹ƒ”›…‘’ƒ›
Ȉ ƒŽ‰ƒƒ–‹‘ ‘ ƒš‘…‘‡†‹•–”‹„—–‡†„›•’‡…‹ϐ‹‡†…‘’ƒ›‘”—–—ƒŽ —†
Ȉ ‡”‰‡”• ‘ ƒšƒ–‹‘ƒ•’‡…–•”‡Žƒ–‡†–‘‘˜‡”•‹‘‘ˆ‘’ƒ›‹–‘ƒ
‘ ƒšŽ‹ƒ„‹Ž‹–›‘ˆ‘’ƒ›‹–Š‡‡˜‡–‘ˆŽ‹“—‹†ƒ–‹‘
Ȉ ‡Ǧ‡”‰‡”•
‘ ƒšƒ–‹‘ƒ•’‡…–•‘ˆŠƒ”‡”‡‹—
‘ ƒšƒ–‹‘ƒ•’‡…–•‘ˆƒŽ‰ƒƒ–‹‘ǡ‡”‰‡”•ƒ†‡Ǧ‡”‰‡”•

Lesson Outline
Ȉ ƒ…‰”‘—†Ƭ›’‡•‘ˆ Ȉ ƒšƒ–‹‘ƒ•’‡…–•”‡Žƒ–‡†–‘
‘’ƒ‹‡• ‘˜‡”•‹‘‘ˆ‘’ƒ›‹–‘ƒ
Ȉ ƒš…‹†‡…‡‘‘’ƒ‹‡• 
Ȉ ‹‹—Ž–‡”ƒ–‡ƒšǮǯ Ȉ ƒšŽ‹ƒ„‹Ž‹–›‘ˆ‘’ƒ›‹–Š‡
‡˜‡–‘ˆŽ‹“—‹†ƒ–‹‘
Ȉ ”‡†‹–
Ȉ ƒšƒ–‹‘‘ˆŠƒ”‡”‡‹—
Ȉ ƒšƒ–‹‘‘ˆ‹˜‹†‡†
Ȉ ƒšƒ–‹‘ƒ•’‡…–•‘ˆ
Ȉ ƒ”„‘”‡†‹–
ƒŽ‰ƒƒ–‹‘ǡ‡”‰‡”•ƒ†
Ȉ —›„ƒ…‘ˆŠƒ”‡• ‡Ǧ‡”‰‡”•
Ȉ ‘˜‡”•‹‘‘ˆƒ†‹ƒ”ƒ…Š Ȉ 
‘ˆƒˆ‘”‡‹‰…‘’ƒ›‹–‘ƒ
Ȉ 
†‹ƒ•—„•‹†‹ƒ”›…‘’ƒ›
Ȉ   

Ȉ ƒš‘…‘‡†‹•–”‹„—–‡†„›
•’‡…‹ϐ‹‡†…‘’ƒ›‘”—–—ƒŽ Ȉ  
Fund
Ȉ “—ƒŽ‹œƒ–‹‘‡˜›

Income tax being direct tax is a major source of revenue for the Central
Government. The entire amount of income tax collected by the Central

‘˜‡”‡– ‹• …Žƒ••‹ϔ‹‡† —†‡” –Š‡ Š‡ƒ†ǣ ȋƒȌ ‘”’‘”ƒ–‹‘ ƒš ȋƒš ‘ –Š‡
‹…‘‡ ‘ˆ –Š‡ …‘’ƒ‹‡•Ȍ ƒ† ȋ„Ȍ …‘‡ ƒš ȋƒš ‘ ‹…‘‡ ‘ˆ –Š‡ ‘Ǧ
…‘”’‘”ƒ–‡ƒ••‡••‡•ȌǤ
 454 Lesson 8 Ȉ EP-TL

Regulatory Framework
‡…–‹‘• …‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
‡…–‹‘ʹȋʹ͸Ȍ †‹ƒ‘’ƒ›
‡…–‹‘ʹȋʹ͸Ȍ ˆ”ƒ•–”—…–—”ƒŽƒ’‹–ƒŽ‘’ƒ›
‡…–‹‘ʹȋʹʹȌ ‘‡•–‹…‘’ƒ›
‡…–‹‘ʹȋʹ͵Ȍ ‘”‡‹‰‘’ƒ›
‡…–‹‘͸ȋ͵Ȍ ‡•‹†‡–‹ƒŽ–ƒ–—•‘ˆ‘’ƒ›
‡…–‹‘ͳͳͷ ƒš‘…‘‡‘ˆ…‡”–ƒ‹ƒ—ˆƒ…–—”‹‰‘‡•–‹…‘’ƒ‹‡•
‡…–‹‘ͳͳͷ ƒš‘…‘‡‘ˆ…‡”–ƒ‹‘‡•–‹…‘’ƒ‹‡•
‡…–‹‘ͳͳͷ ƒš‘…‘‡‘ˆ‡™ƒ—ˆƒ…–—”‹‰‘‡•–‹…‘’ƒ‹‡•
‡…–‹‘ͳͳͷ  ‹‹—Ž–‡”ƒ–‡ƒš
‡…–‹‘ͳͳͷ  ”‡†‹–
ƒšƒ„‹Ž‹–› ‘ˆ ‹˜‹†‡† …‘‡ ‘ˆ ƒ †‹ƒ …‘’ƒ› ˆ”‘ ƒ ’‡…‹ϐ‹‡† ‘”‡‹‰
‡…–‹‘ͳͳͷ
‘’ƒ›
‡…–‹‘ͳͳͷ
ƒ”„‘”‡†‹–


Ƭ 
‡ˆ‘”‡™‡„‡‰‹–‘‡šƒ‹‡ƒ†—†‡”•–ƒ†–Š‡–ƒšƒ„‹Ž‹–›ƒ†–ƒš‹…‹†‡…‡‘…‘’ƒ‹‡•ǡ™‡—•–—†‡”•–ƒ†–Š‡
‡ƒ‹‰‘ˆ…‘’ƒ›ƒ†‹–•–›’‡•–Šƒ–ƒ”‡‹‡š‹•–‡…‡–‘†ƒ›’‘•––Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵Ǥ
‡ƒ‹‰‘ˆ‘’ƒ›ǣ
•’‡”•‡…–‹‘ʹȋͳ͹Ȍǡ…‘’ƒ›‡ƒ•ǣ
ȋͳȌ ›†‹ƒ…‘’ƒ›ƒ•†‡ϐ‹‡†‹•‡…–‹‘ʹȋʹ͸Ȍǡ‘”
ȋʹȌ ›„‘†›…‘”’‘”ƒ–‡‹…‘”’‘”ƒ–‡†„›‘”—†‡”–Š‡Žƒ™•‘ˆƒ…‘—–”›‘—–•‹†‡†‹ƒǡ‹Ǥ‡Ǥǡƒ›ˆ‘”‡‹‰…‘’ƒ›ǡ‘”
ȋ͵Ȍ ›‹•–‹–—–‹‘ǡƒ••‘…‹ƒ–‹‘‘”„‘†›™Š‹…Š™ƒ•ƒ••‡••‡†ƒ•ƒ…‘’ƒ›ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”—†‡”–Š‡
…‘‡Ǧ–ƒš…–ǡͳͻʹʹ‘”™ƒ•ƒ••‡••‡†—†‡”–Š‹•ƒ…–ƒ•ƒ…‘’ƒ›ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”…‘‡…‹‰
‘‘”„‡ˆ‘”‡ͳǤͶǤͳͻ͹Ͳǡ‘”
ȋͶȌ › ‹•–‹–—–‹‘ǡ ƒ••‘…‹ƒ–‹‘ ‘” „‘†›ǡ ™Š‡–Š‡” ‹…‘”’‘”ƒ–‡† ‘” ‘– ƒ† ™Š‡–Š‡” †‹ƒ ‘” ‘Ǧ†‹ƒǡ
™Š‹…Š‹•†‡…Žƒ”‡†„›ƒ‰‡‡”ƒŽ‘”•’‡…‹ƒŽ‘”†‡”‘ˆ–‘„‡ƒ…‘’ƒ›Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• 455

†‹ƒ‘’ƒ›

‡…–‹‘ʹȋʹ͸Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ†‡ϐ‹‡•–Š‡‡š’”‡••‹‘Ǯ†‹ƒ‘’ƒ›ǯƒ•ƒ…‘’ƒ›ˆ‘”‡†ƒ†”‡‰‹•–‡”‡†

—†‡”–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ƒ†–Š‡”‡‰‹•–‡”‡†‘ˆϐ‹…‡‘”–Š‡’”‹…‹’ƒŽ‘ˆϐ‹…‡•Š‘—Ž†„‡‹†‹ƒƒ†‹–ƒŽ•‘‹…Ž—†‡•ǣ
ȋƒȌ ƒ…‘’ƒ›ˆ‘”‡†ƒ†”‡‰‹•–‡”‡†—†‡”ƒ›Žƒ™”‡Žƒ–‹‰–‘…‘’ƒ‹‡•ˆ‘”‡”Ž›‹ˆ‘”…‡‹ƒ›’ƒ”–‘ˆ
†‹ƒȏ‘–Š‡”–Šƒ ƒ—ƒ†ƒ•Š‹”ǡƒ†–Š‡‹‘‡””‹–‘”‹‡••’‡…‹ϐ‹‡†‹ȋ†Ȍ„‡Ž‘™ȐǢ
ȋ„Ȍ ƒ›…‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ‡–”ƒŽǡ–ƒ–‡‘””‘˜‹…‹ƒŽ…–Ǣ
ȋ…Ȍ ƒ›‹•–‹–—–‹‘ǡƒ••‘…‹ƒ–‹‘‘”„‘†›™Š‹…Š‹•†‡…Žƒ”‡†„›–Š‡‘ƒ”†–‘„‡ƒ…‘’ƒ›—†‡”‡…–‹‘ʹȋͳ͹Ȍ
‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǢ
ȋ†Ȍ ‹–Š‡…ƒ•‡‘ˆƒ›‘ˆ–Š‡‹‘‡””‹–‘”‹‡•‘ˆƒ†”ƒƒ†ƒ‰ƒ”ƒ˜‡Ž‹ǡ
‘ƒǡƒƒƒ†‹—ƒ†‘†‹…Š‡””›ǡ
ƒ…‘’ƒ›ˆ‘”‡†ƒ†”‡‰‹•–‡”‡†—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‹–Šƒ–‹‘‡””‹–‘”›Ǣ
”‘˜‹†‡† –Šƒ– –Š‡ ”‡‰‹•–‡”‡† ‘”ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ ’”‹…‹’ƒŽ ‘ˆϐ‹…‡ ‘ˆ –Š‡ …‘’ƒ›ǡ …‘”’‘”ƒ–‹‘ǡ ‹•–‹–—–‹‘ǡ
ƒ••‘…‹ƒ–‹‘‘”„‘†›‹ƒŽŽ…ƒ•‡•‹•‹†‹ƒǤ
”‘ –Š‡ ƒ„‘˜‡ †‡ϐ‹‹–‹‘ǡ ‹– ƒ› „‡ •‡‡ –Šƒ– •–ƒ–—–‘”› …‘”’‘”ƒ–‹‘• ƒ• ™‡ŽŽ ƒ• ‰‘˜‡”‡– …‘’ƒ‹‡• ƒ”‡
ƒ—–‘ƒ–‹…ƒŽŽ›–”‡ƒ–‡†ƒ•†‹ƒ…‘’ƒ‹‡•ˆ‘”’—”’‘•‡•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤŠ‡†‡ϐ‹‹–‹‘‘ˆƒ†‹ƒ
…‘’ƒ›Šƒ•„‡‡•’‡…‹ϐ‹…ƒŽŽ›‰‹˜‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ„‡…ƒ—•‡‘ˆ–Š‡ˆƒ…––Šƒ–†‹ƒ…‘’ƒ‹‡•ƒ”‡
‡–‹–Ž‡†–‘…‡”–ƒ‹•’‡…‹ƒŽ–ƒš„‡‡ϐ‹–•—†‡”–Š‹•…–Ǥ–—•–„‡‘–‡†–Šƒ–ƒŽŽ…‘’ƒ‹‡•ˆƒŽŽ‹‰™‹–Š‹–Š‡†‡ϐ‹‹–‹‘
‰‹˜‡‹‡…–‹‘ʹȋͳ͹Ȍ‘ˆ–Š‡…–ƒ”‡‘–‡…‡••ƒ”‹Ž›†‹ƒ…‘’ƒ‹‡•™Š‡”‡ƒ•ƒŽŽ†‹ƒ…‘’ƒ‹‡•ƒ”‡…‘’ƒ‹‡•
™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘ʹȋͳ͹Ȍ‘ˆ–Š‡…–Ǥ

ˆ”ƒ•–”—…–—”ƒŽ…ƒ’‹–ƒŽ…‘’ƒ›‹•†‡ϐ‹‡†—†‡”‡…–‹‘ʹȋʹ͸Ȍ
Ȉ –‡ƒ•ƒ…‘’ƒ›™Š‹…Šƒ‡•‹˜‡•–‡–•„›™ƒ›‘ˆƒ…“—‹”‹‰•Šƒ”‡•‘”
Ȉ ”‘˜‹†‹‰Ž‘‰Ǧ–‡”ϐ‹ƒ…‡–‘ƒ›‡–‡”’”‹•‡‘”—†‡”–ƒ‹‰™Š‘ŽŽ›‡‰ƒ‰‡†‹–Š‡„—•‹‡••”‡ˆ‡””‡†–‘
‹‡…–‹‘ͺͲǦȋͶȌ‘”‡…–‹‘ͺͲǦȋͳȌ‘”
Ȉ —†‡”–ƒ‹‰†‡˜‡Ž‘’‹‰ƒ†„—‹Ž†‹‰ƒŠ‘—•‹‰’”‘Œ‡…–”‡ˆ‡””‡†–‘‹‡…–‹‘ͺͲǦȋͳͲȌ‘”
Ȉ ’”‘Œ‡…–ˆ‘”…‘•–”—…–‹‰ƒŠ‘–‡Ž‘ˆ‘–Ž‡••–Šƒ–Š”‡‡Ǧ•–ƒ”…ƒ–‡‰‘”›ƒ•…Žƒ••‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–
‘”ƒ’”‘Œ‡…–ˆ‘”…‘•–”—…–‹‰ƒŠ‘•’‹–ƒŽ™‹–Šƒ–Ž‡ƒ•–‘‡ǦŠ—†”‡†„‡†•ˆ‘”’ƒ–‹‡–•Ǥ
‘‡•–‹…‘’ƒ›
‡…–‹‘ʹȋʹʹȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǡ†‡ϐ‹‡•Ȃ
Ȉ ‘‡•–‹……‘’ƒ›ƒ•ƒ†‹ƒ…‘’ƒ›‘”
Ȉ ›‘–Š‡”…‘’ƒ›™Š‹…Šǡ‹”‡•’‡…–‘ˆ‹–•‹…‘‡Ž‹ƒ„Ž‡–‘–ƒš—†‡”–Š‡…‘‡ƒš…–ǡŠƒ•ƒ†‡–Š‡
’”‡•…”‹„‡† ƒ””ƒ‰‡‡–• ˆ‘” –Š‡ †‡…Žƒ”ƒ–‹‘ ƒ† ’ƒ›‡– ™‹–Š‹ †‹ƒǡ ‘ˆ –Š‡ †‹˜‹†‡†• ȋ‹…Ž—†‹‰
†‹˜‹†‡†•‘’”‡ˆ‡”‡…‡•Šƒ”‡•Ȍ’ƒ›ƒ„Ž‡‘—–‘ˆ•—…Š‹…‘‡Ǥ
”‘–Š‹•†‡ϐ‹‹–‹‘ǡ‹–‹•…Ž‡ƒ”–Šƒ–Ȃ
Ȉ ŽŽ†‹ƒ…‘’ƒ‹‡•ƒ”‡†‘‡•–‹……‘’ƒ‹‡•™Š‹Ž‡
Ȉ ŽŽ†‘‡•–‹……‘’ƒ‹‡•‡‡†‘–‡…‡••ƒ”‹Ž›„‡†‹ƒ…‘’ƒ‹‡•Ǥ‘–Š‡”™‘”†•ǡƒ‘Ǧ†‹ƒ…‘’ƒ›
™‘—Ž†„‡…‘•‹†‡”‡†ƒ•ƒ†‘‡•–‹……‘’ƒ›‹ˆ‹–ƒ‡•–Š‡’”‡•…”‹„‡†ƒ””ƒ‰‡‡–•ˆ‘”–Š‡†‡…Žƒ”ƒ–‹‘
ƒ†’ƒ›‡–‘ˆ†‹˜‹†‡†•‹†‹ƒ‘™Š‹…Š–ƒš‹•†‡†—…–‹„Ž‡—†‡”‡…–‹‘ͳͻͶǤ
†‡”—Ž‡ʹ͹‘ˆ…‘‡–ƒš”—Ž‡•ǡ–Š‡’”‡•…”‹„‡†ƒ””ƒ‰‡‡–•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ
ȋ‹Ȍ –Š‡•Šƒ”‡”‡‰‹•–‡”‘ˆ–Š‡…‘’ƒ›…‘…‡”‡†ǡˆ‘”ƒŽŽ‹–••Šƒ”‡Š‘Ž†‡”•ǡ•ŠƒŽŽ„‡”‡‰—Žƒ”Ž›ƒ‹–ƒ‹‡†
ƒ–‹–•’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••™‹–Š‹†‹ƒ‹”‡•’‡…–‘ˆƒ›ƒ••‡••‡–›‡ƒ”ˆ”‘ƒ†ƒ–‡‘–Žƒ–‡”
–Šƒ–Š‡ϐ‹”•–†ƒ›‘ˆ’”‹Ž‘ˆ•—…Š›‡ƒ”Ǣ
ȋ‹‹Ȍ –Š‡ ‰‡‡”ƒŽ ‡‡–‹‰ ˆ‘” ’ƒ••‹‰ –Š‡ ƒ……‘—–• ‘ˆ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ƒ••‡••‡– ›‡ƒ”
†‡…Žƒ”‹‰ƒ›†‹˜‹†‡†•‹”‡•’‡…––Š‡”‡‘ˆ•ŠƒŽŽ„‡Š‡Ž†‘Ž›ƒ–ƒ’Žƒ…‡™‹–Š‹†‹ƒǢ
ȋ‹‹‹Ȍ –Š‡†‹˜‹†‡†•†‡…Žƒ”‡†ǡ‹ˆƒ›ǡ•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡‘Ž›™‹–Š‹†‹ƒ–‘ƒŽŽ•Šƒ”‡Š‘Ž†‡”•Ǥ
 Ͷͷ͸ Lesson 8 Ȉ EP-TL

 ‘”‡‹‰‘’ƒ›
‡…–‹‘ʹȋʹ͵Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–†‡ϐ‹‡•Ȃ
Ȉ ‘”‡‹‰…‘’ƒ›ƒ•ƒ…‘’ƒ›ǡ™Š‹…Šǡ‹•‘–ƒ†‘‡•–‹……‘’ƒ›Ǥ
Ȉ ‘™‡˜‡”ǡƒŽŽ‘Ǧ†‹ƒ…‘’ƒ‹‡•ƒ”‡‘–‡…‡••ƒ”‹Ž›ˆ‘”‡‹‰…‘’ƒ‹‡•Ǥˆƒ‘Ǧ†‹ƒ…‘’ƒ›Šƒ•
ƒ†‡–Š‡’”‡•…”‹„‡†ƒ””ƒ‰‡‡–•ˆ‘”†‡…Žƒ”ƒ–‹‘ƒ†’ƒ›‡–•‘ˆ†‹˜‹†‡†•™‹–Š‹†‹ƒǡ•—…Šƒ‘Ǧ
†‹ƒ…‘’ƒ›—•–„‡–”‡ƒ–‡†ƒ•ƒDz†‘‡•–‹……‘’ƒ›dzƒ†‘–ƒ•ƒDzˆ‘”‡‹‰…‘’ƒ›dzǤ
‘’ƒ›‹™Š‹…Š’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†ȋ™‹†‡Ž›ǦŠ‡Ž†…‘’ƒ›Ȍ

‡…–‹‘ ʹȋͳͺȌ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …– †‡ϐ‹‡• –Š‡ ‡š’”‡••‹‘ Dz…‘’ƒ› ‹ ™Š‹…Š –Š‡ ’—„Ž‹… ƒ”‡ •—„•–ƒ–‹ƒŽŽ›
‹–‡”‡•–‡†dzǤ
…‘’ƒ›‹••ƒ‹†–‘„‡‘‡‹™Š‹…Š’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǡƒ‡Ž›Ǧ
ȋ‹Ȍ …‘’ƒ›‘™‡†„›
‘˜‡”‡–ȀȂˆ‹–‹•ƒ…‘’ƒ›‘™‡†„›–Š‡
‘˜‡”‡–ȋ‡‹–Š‡”…‡–”ƒŽ
‘”•–ƒ–‡„—–‘–ˆ‘”‡‹‰Ȍ‘”–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ‘”‹™Š‹…Š‘–Ž‡••–ŠƒͶͲ’‡”…‡–‘ˆ–Š‡•Šƒ”‡•ǡ
™Š‡–Š‡”•‹‰Ž›‘”–ƒ‡–‘‰‡–Š‡”ǡƒ”‡Š‡Ž†„›–Š‡
‘˜‡”‡–‘”–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ‘”ƒ…‘”’‘”ƒ–‹‘
‘™‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒǢ‘”
ȋ‹‹Ȍ ‡…–‹‘ͺ…‘’ƒ›Ȃˆ‹–‹•ƒ…‘’ƒ›™Š‹…Š‹•”‡‰‹•–‡”‡†—†‡”‡…–‹‘ͺ‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵Ǣ‘”
ȋ‹‹‹Ȍ …‘’ƒ›Šƒ˜‹‰‘•Šƒ”‡…ƒ’‹–ƒŽ†‡…Žƒ”‡†„›Ȃˆ‹–‹•ƒ…‘’ƒ›ǡŠƒ˜‹‰‘•Šƒ”‡…ƒ’‹–ƒŽƒ†
‹ˆǡ Šƒ˜‹‰ ”‡‰ƒ”† –‘ ‹–• ‘„Œ‡…–•ǡ –Š‡ ƒ–—”‡ ƒ† …‘’‘•‹–‹‘ ‘ˆ ‹–• ‡„‡”•Š‹’ ƒ† ‘–Š‡” ”‡Ž‡˜ƒ–
…‘•‹†‡”ƒ–‹‘•ǡ‹–‹•†‡…Žƒ”‡†„›ƒ‘”†‡”‘ˆ–Š‡‘ƒ”†ȋȌ–‘„‡ƒ…‘’ƒ›‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡
•—„•–ƒ–‹ƒŽŽ› ‹–‡”‡•–‡†Ǥ ‘™‡˜‡”ǡ •—…Š ƒ …‘’ƒ› •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ ‘‡ ‹ ™Š‹…Š –Š‡ ’—„Ž‹… ƒ”‡
•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†‘Ž›ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”ȋ•Ȍƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡†‡…Žƒ”ƒ–‹‘Ǣ‘”
ȋ‹˜Ȍ ‹†Š‹Ȁ—–—ƒŽ‡‡ϐ‹–‘…‹‡–›Ȃˆ‹–‹•—–—ƒŽ„‡‡ϐ‹–ϐ‹ƒ…‡ƒ…‘’ƒ›™Š‹…Š…ƒ””‹‡•‘ǡƒ•‹–•’”‹…‹’ƒŽ
„—•‹‡••ǡ–Š‡„—•‹‡••‘ˆƒ……‡’–ƒ…‡‘ˆ†‡’‘•‹–•ˆ”‘‹–•‡„‡”•ƒ†™Š‹…Š‹•†‡…Žƒ”‡†„›–Š‡‡–”ƒŽ

‘˜‡”‡–—†‡”‡…–‹‘ͶͲ͸‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵–‘„‡ƒ‹†Š‹‘”—–—ƒŽ‡‡ϐ‹–‘…‹‡–›Ǣ‘”
ȋ˜Ȍ …‘’ƒ›‘™‡†„›‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›Ȃˆ‹–‹•ƒ…‘’ƒ›‹™Š‹…Š•Šƒ”‡•…ƒ””›‹‰‘–Ž‡••–ŠƒͷͲ
’‡”…‡–‘ˆ–Š‡˜‘–‹‰’‘™‡”Šƒ˜‡„‡‡ƒŽŽ‘––‡†—…‘†‹–‹‘ƒŽŽ›–‘‘”ƒ…“—‹”‡†—…‘†‹–‹‘ƒŽŽ›„›ǡƒ†ƒ”‡
–Š”‘—‰Š‘—––Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”„‡‡ϐ‹…‹ƒŽŽ›Š‡Ž†„›ǡ‘‡‘”‘”‡…‘‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•Ǣ‘”
ȋ˜‹Ȍ ‹•–‡†‘’ƒ›Ȃˆ‹–‹•ƒ…‘’ƒ›™Š‹…Š‹•‘–ƒ’”‹˜ƒ–‡…‘’ƒ›ƒ•†‡ϐ‹‡†‹‘’ƒ‹‡•…–ǡƒ†
‡“—‹–›•Šƒ”‡•‘ˆ–Š‡…‘’ƒ›ȋ‘–„‡‹‰•Šƒ”‡•‡–‹–Ž‡†–‘ƒϐ‹š‡†”ƒ–‡‘ˆ†‹˜‹†‡†™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–
ƒˆ—”–Š‡””‹‰Š––‘’ƒ”–‹…‹’ƒ–‡‹–Š‡’”‘ϐ‹–•ǡ‹Ǥ‡Ǥǡ’”‡ˆ‡”‡…‡•Šƒ”‡•Ȍ™‡”‡ǡƒ•‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡”‡Ž‡˜ƒ–
’”‡˜‹‘—•›‡ƒ”ǡŽ‹•–‡†‹ƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡‹†‹ƒǢ
ȋ˜‹‹Ȍ —„Ž‹……‘’ƒ›‘™‡†„›
‘˜–Ǥƒ†Ȁ‘”’—„Ž‹…Ž‹‹–‡†…‘’ƒ›Ȃˆ‹–‹•ƒ…‘’ƒ›™Š‹…Š‹•‘–ƒ
’”‹˜ƒ–‡ …‘’ƒ› ™‹–Š‹ –Š‡ ‡ƒ‹‰ ‘ˆ –Š‡ ‘’ƒ‹‡• …–ǡ ƒ† –Š‡ •Šƒ”‡• ‹ –Š‡ …‘’ƒ› ȋ‘– „‡‹‰
•Šƒ”‡•‡–‹–Ž‡†–‘ƒϐ‹š‡†”ƒ–‡‘ˆ†‹˜‹†‡†™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–ƒˆ—”–Š‡””‹‰Š––‘’ƒ”–‹…‹’ƒ–‡‹’”‘ϐ‹–•Ȍ
…ƒ””›‹‰‘–Ž‡••–ŠƒͷͲ’‡”…‡–ȋͶͲ’‡”…‡–‹…ƒ•‡‘ˆƒ‹†—•–”‹ƒŽ…‘’ƒ›Ȍ‘ˆ–Š‡˜‘–‹‰’‘™‡”Šƒ˜‡
„‡‡ ƒŽŽ‘––‡† —…‘†‹–‹‘ƒŽŽ› –‘ǡ ‘” ƒ…“—‹”‡† —…‘†‹–‹‘ƒŽŽ› „›ǡ ƒ† ™‡”‡ –Š”‘—‰Š‘—– –Š‡ ”‡Ž‡˜ƒ–
ƒ……‘—–‹‰›‡ƒ”„‡‡ϐ‹…‹ƒŽŽ›Š‡Ž†„›ȋƒȌ–Š‡
‘˜‡”‡–ǡ‘”ȋ„Ȍƒ…‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›ƒ‡–”ƒŽ‘”
–ƒ–‡‘””‘˜‹…‹ƒŽ…–ǡ‘”ȋ…Ȍƒ›…‘’ƒ›‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†‘”ƒ™Š‘ŽŽ›
‘™‡†•—„•‹†‹ƒ”›…‘’ƒ›Ǥ
‘–‡Ȃ

†—•–”‹ƒŽ‘’ƒ›‡ƒ•ƒ†‹ƒ…‘’ƒ›™Š‡”‡„—•‹‡••…‘•‹•–•ƒ‹Ž›‹–Š‡…‘•–”—…–‹‘‘ˆ•Š‹’•‘”‹
–Š‡ƒ—ˆƒ…–—”‡‘”’”‘…‡••‹‰‘ˆ‰‘‘†•‘”‹‹‹‰‘”‹–Š‡‰‡‡”ƒ–‹‘‘”†‹•–”‹„—–‹‘‘ˆ‡Ž‡…–”‹…‹–›‘”ƒ›‘–Š‡”
ˆ‘”‘ˆ’‘™‡”Ǥ
–ƒ›„‡‘–‡†–Šƒ–ǡƒ’—„Ž‹……‘’ƒ›—†‡”–Š‡‘’ƒ‹‡•…–ǡ‡‡†‘–‡…‡••ƒ”‹Ž›ˆƒŽŽ™‹–Š‹–Š‡‡ƒ‹‰‘ˆƒ
…‘’ƒ›‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ„‡…ƒ—•‡ƒ’—„Ž‹……‘’ƒ›
—†‡”–Š‡‘’ƒ‹‡•…–ǡƒ›„‡…‘•‹†‡”‡†ƒ•‘‡‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡‘–•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†—†‡”–Š‡
…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳƒˆ–‡”…‘•‹†‡”‹‰–Š‡ƒ–—”‡ƒ†‡š–‡–‘ˆ•Šƒ”‡Š‘Ž†‹‰Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͷ͹

ŽŽ—•–”ƒ–‹‘ͳǣ
–ƒ–‡™‹–Š”‡ƒ•‘™Š‡–Š‡”‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•‘’ƒ‹‡•ƒ”‡™‹†‡Ž›Š‡Ž†‘”…Ž‘•‡Ž›Š‡Ž†ǣ
ȋƒȌ Š‡•Šƒ”‡•‘ˆ”‹˜ƒ–‡‹‹–‡†ƒ”‡Š‡Ž†ƒ•ˆ‘ŽŽ‘™•ǣ
‹ …‘”’‘”ƒ–‹‘‘™‡†„› ͳͷΨ
‹‹ ‡–”ƒŽ
‘˜–Ǥ ͳͺΨ
‹‹‹ ǤǤǤ ͳͲΨ
‹˜ ”Ǥƒƒ ʹͺΨ
˜ ”ǤŠ—˜ƒ ʹ͹Ψ
ȋ„Ȍ ͺͷΨ‡“—‹–›•Šƒ”‡•‘ˆ”‘‰”‡••‹˜‡”‹˜ƒ–‡‹‹–‡†™‡”‡Š‡Ž†„›–Š‡’—„Ž‹…ƒ†‹–•ƒˆˆƒ‹”•†—”‹‰–Š‡
”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”™‡”‡…‘–”‘ŽŽ‡†„›•‡˜‡’‡”•‘•Ǥ
‘Ž—–‹‘ǣ
ȋƒȌ Šƒ”‡•Š‡Ž†„›
‘˜–Ǥǡƒ†‘”’‘”ƒ–‹‘‘™‡†„›αͳͺΨΪͳͲΨΪͳͷΨαͶ͵ΨǤ
 ••Šƒ”‡•Š‡Ž†„›
ƒŽ‘‰™‹–Šƒ”‡‘”‡–ŠƒͶͲΨǡ–Š‡”‡ˆ‘”‡ǡ˜–Ǥ–†Ǥ‹•ƒ
‘˜–Ǥƒ”–‹…‹’ƒ–‹‰
…‘’ƒ›Ǥ‡…‡‹–‹•ƒ…‘’ƒ›‹™Š‹…Š—„Ž‹…‹••—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†ǡ‹Ǥ‡Ǥǡ™‹†‡Ž›Š‡Ž†Ǥ
ȋ„Ȍ •‘‡‘ˆ–Š‡…”‹–‡”‹ƒ‡–‹‘‡†‹‡…–‹‘ʹȋͳͺȌƒ”‡‡–‹…ƒ•‡‘ˆ”‘‰”‡••‹˜‡˜–Ǥ–†Ǥȋ•—…Šƒ•

‘˜–Ǥƒ”–‹…‹’ƒ–‹‰ǡ‡…–‹‘ͺ‘’ƒ›‘”‹†Š‹‡–…ǤȌ–Š‡”‡ˆ‘”‡ǡ‹–‹•ƒ…Ž‘•‡Ž›Š‡Ž†…‘’ƒ›Ǥ

Ž‘•‡Ž›Š‡Ž†…‘’ƒ›

‘’ƒ›‹™Š‹…Š–Š‡’—„Ž‹…‹•‘–•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†‹•‘™ƒ•ƒ…Ž‘•‡Ž›Š‡Ž†…‘’ƒ›Ǥ
Š‡†‹•–‹…–‹‘„‡–™‡‡ƒ…Ž‘•‡Ž›Š‡Ž†ƒ†™‹†‡Ž›Š‡Ž†…‘’ƒ›‹••‹‰‹ϐ‹…ƒ–ˆ”‘–Š‡ˆ‘ŽŽ‘™‹‰˜‹‡™’‘‹–•Ǥ
ȋ‹Ȍ ‡…–‹‘ʹȋʹʹȌȋ‡Ȍǡ™Š‹…Š†‡‡•…‡”–ƒ‹’ƒ›‡–•ƒ•†‹˜‹†‡†ǡ‹•ƒ’’Ž‹…ƒ„Ž‡‘Ž›–‘–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆƒ
…Ž‘•‡Ž›ǦŠ‡Ž†…‘’ƒ›Ǣƒ†
ȋ‹‹Ȍ …Ž‘•‡Ž›Š‡Ž†…‘’ƒ›‹•ƒŽŽ‘™‡†–‘…ƒ””›ˆ‘”™ƒ”†‹–•„—•‹‡••Ž‘••‡•‘Ž›‹ˆ–Š‡…‘†‹–‹‘••’‡…‹ϐ‹‡†‹
‡…–‹‘͹ͻƒ”‡•ƒ–‹•ϐ‹‡†Ǥ

Š‡‹…‹†‡…‡‘ˆ…‘‡–ƒš†‡’‡†•—’‘–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆƒ…‘’ƒ›‹†‹ƒ†—”‹‰–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•
›‡ƒ”Ǥ‘’ƒ›ƒ›„‡‡‹–Š‡””‡•‹†‡–‘”‘Ǧ”‡•‹†‡–‹†‹ƒǡ‹Ǥ‡Ǥǡ…‘’ƒ›…ƒ‘–„‡‘”†‹ƒ”›‘”‘–Ǧ‘”†‹ƒ”›
”‡•‹†‡–Ǥ
……‘”†‹‰–‘‡…–‹‘͸ȋ͵Ȍ‘ˆ–Š‡…–ǡƒ…‘’ƒ›‹••ƒ‹†–‘„‡”‡•‹†‡–‹†‹ƒȋ”‡•‹†‡–…‘’ƒ›Ȍ‹ƒ›’”‡˜‹‘—•
›‡ƒ”ǡ‹ˆǣ
ȋ‹Ȍ –‹•ƒ†‹ƒ…‘’ƒ›Ǣ‘”
ȋ‹‹Ȍ –•’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡ƒƒ‰‡‡–ǡȋȌǡ‹–Šƒ–›‡ƒ”ǡ‹•‹†‹ƒǤ
ˆƒ›‘ˆ–Š‡ƒ„‘˜‡–™‘–‡•–•‹••ƒ–‹•ϐ‹‡†–Š‡…‘’ƒ›™‘—Ž†„‡ƒ”‡•‹†‡–…‘’ƒ›‹†‹ƒ†—”‹‰–Šƒ–’”‡˜‹‘—•›‡ƒ”Ǥ
ˆ‘”‡‹‰…‘’ƒ›‹•”‡•‹†‡–‹†‹ƒ‹ˆ‹–•Žƒ…‡‘ˆˆˆ‡…–‹˜‡ƒƒ‰‡‡–ȋȌ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹•‹
†‹ƒǤ ‘”–Š‹•’—”’‘•‡ǡ–Š‡Žƒ…‡‘ˆˆˆ‡…–‹˜‡ƒƒ‰‡‡–‡ƒ•ƒ’Žƒ…‡™Š‡”‡‡›ƒƒ‰‡‡–ƒ†…‘‡”…‹ƒŽ
†‡…‹•‹‘•–Šƒ–ƒ”‡‡…‡••ƒ”›ˆ‘”–Š‡…‘†—…–‘ˆ–Š‡„—•‹‡••‘ˆƒ‡–‹–›ƒ•ƒ™Š‘Ž‡ƒ”‡ǡ‹•—„•–ƒ…‡ƒ”‡ƒ†‡Ǥ
……‘”†‹‰–‘‡…–‹‘ͷȋͳȌ‘ˆ–Š‡…–ǡ–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›’”‡˜‹‘—•›‡ƒ”‘ˆƒ”‡•‹†‡–…‘’ƒ›™‘—Ž†…‘•‹•–‘ˆǣ
ȋ‹Ȍ …‘‡ ”‡…‡‹˜‡† ‘” †‡‡‡† –‘ „‡ ”‡…‡‹˜‡† ‹ †‹ƒ †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” „› ‘” ‘ „‡ŠƒŽˆ ‘ˆ •—…Š
…‘’ƒ›Ǣ
ȋ‹‹Ȍ …‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•‘”‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡–‘‹–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ
 Ͷͷͺ Lesson 8 Ȉ EP-TL

ȋ‹‹‹Ȍ …‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•–‘‹–‘—–•‹†‡†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ

– ‹• ‹’‘”–ƒ– –‘ ‘–‡ –Šƒ– —†‡” …Žƒ—•‡ ȋ‹‹‹Ȍ ‘Ž› ‹…‘‡ ƒ……”—‹‰ ‘” ƒ”‹•‹‰ ‘—–•‹†‡ †‹ƒ ‹• ‹…Ž—†‡†Ǥ …‘‡
†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡‘—–•‹†‡†‹ƒ‹•‘–‹…Ž—†‹„Ž‡‹–Š‡Šƒ†•‘ˆ”‡•‹†‡–•Ǥ‡…‡ǡ‡–†‹˜‹†‡†•”‡…‡‹˜‡†
ˆ”‘ˆ‘”‡‹‰…‘’ƒ‹‡•ƒ”‡‹…Ž—†‹„Ž‡‹‹…‘‡ƒ†‘––Š‡‰”‘••†‹˜‹†‡†•ȏ˜ǤŠƒ™ƒŽŽƒ…‡Ƭ‘Ǥ–†ǤȋͳͻͺͳȌ
ͳ͵ʹͶ͸͸ȐǤ
–Š‹•…‘–‡š–ǡ–Š‡ƒŽ…—––ƒ‹‰Š‘—”–Šƒ†ˆ‘ŽŽ‘™‡†–Š‡—’”‡‡‘—”–ǯ•†‡…‹•‹‘‹‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš
˜ǤŽ‹˜‡•—”ƒ…‡‘Ǥ–†Ǥȋͳͻ͹ͺȌŠ‘Ž†‹‰–Šƒ––Š‡ƒ••‡••‡‡…‘—Ž†„‡•ƒ‹†–‘Šƒ˜‡’ƒ‹†…‘‡ƒš‹Ǥǡ„›†‡†—…–‹‘
‘”‘–Š‡”™‹•‡ǡ‹”‡•’‡…–‘ˆ–Š‡‡–†‹˜‹†‡†•‘ƒ•–‘„‡‡Ž‹‰‹„Ž‡ˆ‘””‡Ž‹‡ˆ…‘–‡’Žƒ–‡†„›‡…–‹‘Ͷͻ‘ˆ–Š‡†‹ƒ
…‘‡ ƒš …–ǡ ͳͻʹʹǤ ‘ŽŽ‘™‹‰ –Š‡ —’”‡‡ ‘—”–ǯ• †‡…‹•‹‘ǡ –Š‡ ‘„ƒ› ‹‰Š ‘—”– Š‡Ž† ‹ –Š‡ …ƒ•‡ ‘ˆ
‘‹••‹‘‡”‘ˆ…‘‡–ƒš˜Ǥƒ–ƒŠ‡‹…ƒŽ•–†Ǥȋͳͻͺ͸Ȍ–Šƒ––Š‡ƒ••‡••‡‡™ƒ•‡–‹–Ž‡†–‘†‘—„Ž‡–ƒšƒ–‹‘”‡Ž‹‡ˆ
—†‡” ‡…–‹‘ ͻͳ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–ǡ ͳͻ͸ͳ ‹ ”‡•’‡…– ‘ˆ †‹˜‹†‡†• ˆ”‘ –Š‡ ‹–‡† ‹‰†‘Ǥ ‘ŽŽ‘™‹‰ ‹–•
†‡…‹•‹‘‹–Š‡…ƒ•‡‘ˆŠƒ™ƒŽŽƒ…‡Ƭ‘Ǥ–†Ǥȋ•—’”ƒȌǡ–Š‡ƒŽ…—––ƒ‹‰Š‘—”–Š‡Ž†‹–Š‡…ƒ•‡‘ˆ–Š‡•ƒ‡ƒ••‡••‡‡
ȋͳͻͺ͵Ȍ–Šƒ–†‹˜‹†‡†•ˆ”‘ˆ‘”‡‹‰…‘’ƒ‹‡•ƒ”‡–‘„‡ƒ••‡••‡†‘–‘–Š‡‰”‘••ƒ‘—–‘ˆ–Š‡†‹˜‹†‡†•„—–‘
–Š‡‰”‘••ƒ‘—–‘ˆ–Š‡†‹˜‹†‡†•Ž‡••–ƒš†‡†—…–‡†–Š‡”‡ˆ”‘‹ˆ‘”‡‹‰…‘—–”‹‡•Ǥ‘–Š‡”™‘”†•ǡ‘Ž›–Š‡‡–
ˆ‘”‡‹‰†‹˜‹†‡†•ƒ”‡–‘„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ”‡•‹†‡–ƒ••‡••‡‡—†‡”‡…–‹‘ͷȋͳȌȋ…Ȍ‘ˆ–Š‡…‘‡Ǧ
–ƒš…–ǡͳͻ͸ͳǤ
†‡”‡…–‹‘ͷȋʹȌ‘ˆ–Š‡…–ǡ–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›’”‡˜‹‘—•›‡ƒ”‘ˆ‘Ǧ”‡•‹†‡–…‘’ƒ›™‘—Ž†…‘•‹•–‘ˆǣ
ȋ‹Ȍ …‘‡”‡…‡‹˜‡†‘”†‡‡‡†–‘„‡”‡…‡‹˜‡†‹†‹ƒ‹–Š‡’”‡˜‹‘—•›‡ƒ”„›‘”‘„‡ŠƒŽˆ‘ˆ•—…Š…‘’ƒ›Ǣ
ȋ‹‹Ȍ …‘‡™Š‹…Šƒ……”—‡•‘”ƒ”‹•‡•‘”‹•†‡‡‡†–‘ƒ……”—‡‘”ƒ”‹•‡–‘‹–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
Š‡†‡…‹•‹‘‘ˆ–Š‡—’”‡‡‘—”–‹–Š‡…ƒ•‡‘ˆ–ƒ†ƒ”†”‹—’Š‘–‘”‘Ǥ–†Ǥ˜Ǥȋͳͻͻ͵Ȍ–‘–Š‡‡ˆˆ‡…––Šƒ–
™Š‡ ƒ †‹ƒ ”‡•‹†‡– ’ƒ••‡• ƒ ‡–”› …”‡†‹–‹‰ ƒ ‘Ǧ”‡•‹†‡– ™‹–Š ƒ‘—– ’ƒ›ƒ„Ž‡ –‘ Š‹ǡ –Šƒ– ™‘—Ž†
–ƒ–ƒ‘—––‘–Š‡Žƒ––‡””‡…‡‹˜‹‰‹…‘‡‹†‹ƒǡ‹•Šƒ˜‹‰‰”ƒ˜‡…‘•‡“—‡…‡•Ǥ–Š‹•…ƒ•‡ǡ–Š‡”‘›ƒŽ–›’ƒ›ƒ„Ž‡–‘
‘Ǧ”‡•‹†‡–‹’‘—†•–‡”Ž‹‰™ƒ•…”‡†‹–‡†–‘–Š‡‘Ǧ”‡•‹†‡–•ƒ……‘—–•‹–Š‡„‘‘•‘ˆ–Š‡ƒ••‡••‡‡ǤŠ‡—’”‡‡
‘—”–Š‡Ž†–Šƒ––Š‡’Ž‡ƒ–‘ƒ……‡’–”‘›ƒŽ–›‹…‘‡‹ǤǤ™ƒ•‹ƒ–‡”‹ƒŽ„‡…ƒ—•‡–Š‡ƒ‘—–™ƒ•ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”–Š‡
—•‡‘ˆ–Š‡‘Ǧ”‡•‹†‡–‹†‹ƒ‹ƒ›ƒ‡”Š‡Ž‹‡†Ǥ‡…‡ǡ–Š‡‹…‘‡™ƒ•”‡…‡‹˜‡†‹†‹ƒǤ–Š‡™ƒ‡‘ˆ–Š‹•
†‡…‹•‹‘ǡ‘Ǧ”‡•‹†‡–•™Š‘Šƒ˜‡ƒŽŽƒŽ‘‰„‡‡Š‡Ž†–‘„‡‘–Ž‹ƒ„Ž‡–‘†‹ƒ…‘‡Ǧ–ƒš‹ˆ–Š‡…‘–”ƒ…–™ƒ••‹‰‡†
‘—–•‹†‡†‹ƒǡ‡š‡…—–‡†‘—–•‹†‡†‹ƒƒ†’ƒ‹†ˆ‘”‘—–•‹†‡†‹ƒ…‘—Ž†™‡ŽŽˆƒŽŽ‹–‘–Š‡†‹ƒǦ–ƒš‡–ǡ•Š‘—Ž†–Š‡‹”
…Ž‹‡–•Ȁ…—•–‘‡”•…”‡†‹––Š‡ˆ‘”–Š‡ƒ‘—–†—‡„‡ˆ‘”‡ƒ‹‰’ƒ›‡–•–‘–Š‡‘—–•‹†‡†‹ƒǤ‘–Š‡”™‘”†•ǡ
ƒ‘Ǧ”‡•‹†‡–ǯ•–ƒšŽ‹ƒ„‹Ž‹–›†‡’‡†•—’‘–Š‡ƒ……‘—–‹‰‡–”›’ƒ••‡†„›Š‹•…Ž‹‡–…—•–‘‡”Ǥ

‘”’‘”ƒ–‡ƒšƒ–‡•

Domestic Company Assessment Year 2022-23

Ȉ Š‡”‡ ‹– Šƒ• ‘’–‡† ˆ‘” ‡…–‹‘ ͳͳͷ ȏ‘–Š‡” –Šƒ –Š‘•‡ ‘’–‡†
—†‡”•‡…–‹‘ͳͳͷƒ†•‡…–‹‘ͳͳͷȐ
ʹͷΨ
ȏŠ‹•”‡‰‹‡•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›ˆ‘”–Š‡ƒ—ˆƒ…–—”‹‰…‘’ƒ‹‡•‹
…‘”’‘”ƒ–‡†‹†‹ƒ‘‘”ƒˆ–‡”ͲͳǦͲ͵ǦʹͲͳ͸Ǥ

Ȉ Š‡”‡‹–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
ȏŠ‹•„‡‡ϐ‹–•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡™Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›‹•
ʹʹΨ
…‘’—–‡†™‹–Š‘—–…Žƒ‹‹‰•’‡…‹ϐ‹‡††‡†—…–‹‘•ǡ‹…‡–‹˜‡•ǡ‡š‡’–‹‘•
ƒ†ƒ††‹–‹‘ƒŽ†‡’”‡…‹ƒ–‹‘ƒ˜ƒ‹Žƒ„Ž‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ǤȐ

Ȉ Š‡”‡‹–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷ
ȏŠ‹• ”‡‰‹‡ •ŠƒŽŽ „‡ ƒ˜ƒ‹Žƒ„Ž‡ ‘Ž› ˆ‘” –Š‡ ƒ—ˆƒ…–—”‹‰…‘’ƒ‹‡•
ͳͷΨ
‹…‘”’‘”ƒ–‡† ‹ †‹ƒ ‘ ‘” ƒˆ–‡” ͲͳǦͳͲǦʹͲͳͻǤ ‡…‡ǡ‘Ž†…‘’ƒ‹‡•™‹ŽŽ
‘–„‡ƒ„Ž‡–‘–ƒ‡–Š‡„‡‡ϐ‹–‘ˆ–Š‹••‡…–‹‘ǤȐ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͷͻ

Ȉ Š‡”‡‹–Šƒ•‘–‘’–‡†ˆ‘”‡…–‹‘ͳͳͷƒ†–Š‡‘–ƒŽ—”‘˜‡”‘”

”‘••”‡…‡‹’–•‘ˆ–Š‡…‘’ƒ›‹–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲͳͻǦʹͲ†‘‡•‘– ʹͷΨ
‡š…‡‡†•ͶͲͲ…”‘”‡”—’‡‡•

Ȉ ›‘–Š‡”†‘‡•–‹……‘’ƒ› ͵ͲΨ

 ‘”‡‹‰‘’ƒ› ͶͲΨ

††ǣ
ƒȌ—”…Šƒ”‰‡ǣ
‘‡•–‹…‘’ƒ›ǣŠ‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒš•ŠƒŽŽ„‡‹…”‡ƒ•‡†„›ƒ•—”…Šƒ”‰‡ƒ––Š‡”ƒ–‡‘ˆ͹Ψ‘ˆ•—…Š–ƒšǡ
™Š‡”‡–‘–ƒŽ‹…‘‡‡š…‡‡†•‘‡…”‘”‡”—’‡‡•„—–‘–‡š…‡‡†‹‰–‡…”‘”‡”—’‡‡•ƒ†ƒ––Š‡”ƒ–‡‘ˆͳʹΨ‘ˆ•—…Š–ƒšǡ
™Š‡”‡ –‘–ƒŽ ‹…‘‡ ‡š…‡‡†• –‡ …”‘”‡ ”—’‡‡•Ǥ ‘™‡˜‡”ǡ –Š‡ ”ƒ–‡ ‘ˆ •—”…Šƒ”‰‡ ‹ …ƒ•‡ ‘ˆ ƒ …‘’ƒ› ‘’–‹‰ ˆ‘”
–ƒšƒ„‹Ž‹–›—†‡”‡…–‹‘ͳͳͷ‘”‡…–‹‘ͳͳͷ•ŠƒŽŽ„‡ͳͲΨ‹””‡•’‡…–‹˜‡‘ˆƒ‘—–‘ˆ–‘–ƒŽ‹…‘‡Ǥ
‘”‡‹‰‘’ƒ›ǣŠ‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒš•ŠƒŽŽ„‡‹…”‡ƒ•‡†„›ƒ•—”…Šƒ”‰‡ƒ––Š‡”ƒ–‡‘ˆʹΨ‘ˆ•—…Š–ƒšǡ™Š‡”‡
–‘–ƒŽ‹…‘‡‡š…‡‡†•‘‡…”‘”‡”—’‡‡•„—–‘–‡š…‡‡†‹‰–‡…”‘”‡”—’‡‡•ƒ†ƒ––Š‡”ƒ–‡‘ˆͷΨ‘ˆ•—…Š–ƒšǡ™Š‡”‡
–‘–ƒŽ‹…‘‡‡š…‡‡†•–‡…”‘”‡”—’‡‡•Ǥ
—”…Šƒ”‰‡‘…‘‡–ƒš‹…ƒ•‡‘ˆ†‹ˆˆ‡”‡–…‘’ƒ‹‡•‹••—ƒ”‹œ‡†ƒ•—†‡”ǣ

›’‡‘ˆ‘’ƒ› ͳͲ”‘”‡•ε‘–ƒŽ…‘‡εͳ”‘”‡ ‘–ƒŽ…‘‡εͳͲ”‘”‡

‘‡•–‹…‘’ƒ› ͹Ψ ͳʹΨ
‘”‡‹‰‘’ƒ› ʹΨ ͷΨ
‘’ƒ›‘’–‹‰ˆ‘”–ƒšƒ„‹Ž‹–›—†‡”‡…–‹‘
Žƒ–ͳͲΨ‹””‡•’‡…–‹˜‡‘ˆƒ‘—–‘ˆ–‘–ƒŽ‹…‘‡
ͳͳͷȀͳͳͷ

„Ȍ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••ǣŠ‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒšƒ†–Š‡ƒ’’Ž‹…ƒ„Ž‡•—”…Šƒ”‰‡ǡ•ŠƒŽŽ„‡ˆ—”–Š‡”‹…”‡ƒ•‡†
„›Š‡ƒŽ–Šƒ†‡†—…ƒ–‹‘…‡••…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆͶΨ‘ˆ•—…Š‹…‘‡Ǧ–ƒšƒ†•—”…Šƒ”‰‡Ǥ

ƒš‘…‘‡‘ˆ…‡”–ƒ‹ƒ—ˆƒ…–—”‹‰‘‡•–‹…‘’ƒ‹‡•ȏ‡…–‹‘ͳͳͷȐ
…‘‡Ǧ–ƒš’ƒ›ƒ„Ž‡„›†‘‡•–‹……‘’ƒ›ǡ™Ǥ‡ǤˆǤʹͲͳ͹Ǧͳͺǡ•ŠƒŽŽǡƒ–‹–•‘’–‹‘ǡ„‡…‘’—–‡†̷ʹͷΨǡ‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ ‘’ƒ›Šƒ•„‡‡•‡–Ǧ—’Ƭ”‡‰‹•–‡”‡†‘‘”ƒˆ–‡”ͲͳǦͲ͵ǦʹͲͳ͸Ǣ
ȋ„Ȍ ‘’ƒ› ‹• ‘Ž› ‡‰ƒ‰‡† ‹ „—•‹‡•• ‘ˆ ƒ—ˆƒ…–—”‡Ȁ’”‘†—…–‹‘ ‘ˆ ƒ› ƒ”–‹…Ž‡Ȁ–Š‹‰ ƒ† ”‡•‡ƒ”…Š ‹
”‡Žƒ–‹‘–‘ǡ‘”†‹•–”‹„—–‹‘‘ˆǡ•—…Šƒ”–‹…Ž‡‘”–Š‹‰ƒ—ˆƒ…–—”‡†Ǣ
ȋ…Ȍ ‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›Šƒ•„‡‡…‘’—–‡†ǣ
ȋ‹Ȍ ™‹–Š‘—–ƒ›†‡†—…–‹‘
Ȉ —Ȁ•ͳͲ‘”
Ȉ —Ȁ•͵ʹȋͳȌȋ‹‹ƒȌ‘”
Ȉ —Ȁ•͵ʹ‘”—Ȁ•͵ʹ‘”
Ȉ —Ȁ•͵͵‘”—Ȁ•͵͵‘”
Ȉ —Ȁ•͵ͷȋͳȌȋ‹‹Ȍȋ‹‹ƒȌȋ‹‹‹Ȍ‘”—Ȁ•͵ͷȋʹȌȋʹȌ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•ͺͲ–‘ͺͲȋ’”‘ϐ‹–„ƒ•‡†Ȍ‘–Š‡”–Šƒ—Ȁ•ͺͲ Ǣ
 Ͷ͸Ͳ Lesson 8 Ȉ EP-TL

ȋ‹‹Ȍ ™‹–Š‘—–•‡–‘ˆˆ‘ˆƒ›Ž‘••…Ȁˆˆ”‘ƒ›‡ƒ”Ž‹‡”‹ˆ•—…ŠŽ‘••‹•ƒ––”‹„—–ƒ„Ž‡–‘ƒ›‘ˆ–Š‡†‡†—…–‹‘•
”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹ȌǢƒ†
ȋ‹‹‹Ȍ †‡’”‡…‹ƒ–‹‘—Ȁ•͵ʹǡ‘–Š‡”–Šƒ…Žƒ—•‡ȋ‹‹ƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ–Š‡•ƒ‹†•‡…–‹‘ǡ‹•†‡–‡”‹‡†‹
–Š‡ƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Š‡Ž‘••”‡ˆ‡””‡†ƒ•ƒ„‘˜‡•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡ƒŽ”‡ƒ†›‰‹˜‡ˆ—ŽŽ‡ˆˆ‡…––‘ƒ†‘ˆ—”–Š‡”†‡†—…–‹‘ˆ‘”
•—…ŠŽ‘•••ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”ƒ›•—„•‡“—‡–›‡ƒ”Ǥ
‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›—Ž‡••‘’–‹‘‹•‡š‡”…‹•‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”‘‘”„‡ˆ‘”‡†—‡
†ƒ–‡ —Ȁ• ͳ͵ͻȋͳȌ ˆ‘” ˆ—”‹•Š‹‰ –Š‡ ϐ‹”•– ‘ˆ ”‡–—”• ‘ˆ ‹…‘‡ ™Š‹…Š –Š‡ ’‡”•‘ ‹• ”‡“—‹”‡† –‘ ˆ—”‹•Š —†‡” –Š‡
’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǣ
”‘˜‹†‡†–Šƒ–‘…‡–Š‡‘’–‹‘Šƒ•„‡‡‡š‡”…‹•‡†ˆ‘”ƒ›’Ȁ›ǡ‹–…ƒ‘–„‡•—„•‡“—‡–Ž›™‹–Š†”ƒ™ˆ‘”–Š‡•ƒ‡‘”
ƒ›‘–Š‡”’Ȁ›Ǥ
”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– ™Š‡”‡ –Š‡ ’‡”•‘ ‡š‡”…‹•‡• ‘’–‹‘ —Ȁ• ͳͳͷǡ –Š‡ ‘’–‹‘ —†‡” –Š‹• •‡…–‹‘ ƒ› „‡
™‹–Š†”ƒ™Ǥ

ƒš‘‹…‘‡‘ˆ…‡”–ƒ‹‘‡•–‹…‘’ƒ‹‡•ȏ‡…–‹‘ͳͳͷȐ
Š‡…‘‡Ǧ–ƒš’ƒ›ƒ„Ž‡‘ˆ†‘‡•–‹……‘’ƒ›ǡ™Ǥ‡ǤˆǤʹͲȀʹͳǡ•ŠƒŽŽǡƒ–‘’–‹‘‘ˆ•—…Š’‡”•‘ǡ„‡…‘’—–‡†̷ʹʹΨǡ
‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǡ’”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡’‡”•‘ˆƒ‹Ž•–‘•ƒ–‹•ˆ›•’‡…‹ϐ‹‡†…‘†‹–‹‘•‹ƒ›
’Ȁ›ǡ–Š‡‘’–‹‘•ŠƒŽŽ„‡…‘‡‹˜ƒŽ‹†‹”‡•’‡…–‘ˆ–Šƒ–’Ȁ›ƒ†•—„•‡“—‡–›‡ƒ”•ƒ†‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‡…–•ŠƒŽŽ
ƒ’’Ž›ǡƒ•‹ˆ–Š‡‘’–‹‘Šƒ†‘–„‡‡‡š‡”…‹•‡†ˆ‘”–Š‡ƒ†•—„•‡“—‡–›‡ƒ”•Ǥ
ȋͳȌ –Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›•ŠƒŽŽ„‡…‘’—–‡†ǣ
ȋ‹Ȍ ™‹–Š‘—–ƒ›†‡†—…–‹‘
Ȉ —Ȁ•ͳͲ‘”
Ȉ —Ȁ•͵ʹȋͳȌȋ‹‹ƒȌ‘”
Ȉ —Ȁ•͵ʹ‘”—Ȁ•͵ʹ‘”
Ȉ —Ȁ•͵͵‘”—Ȁ•͵͵‘”
Ȉ —Ȁ•͵ͷȋͳȌȋ‹‹Ȍȋ‹‹ƒȌȋ‹‹‹Ȍ‘”—Ȁ•͵ͷȋʹȌȋʹȌ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•͵ͷ‘”
Ȉ —Ȁ•ͺͲ–‘ͺͲȋ’”‘ϐ‹–„ƒ•‡†Ȍ‘–Š‡”–Šƒ—Ȁ•ͺͲ Ǣ

ȋ‹‹Ȍ ™‹–Š‘—–•‡–‘ˆˆ‘ˆƒ›Ž‘••…Ȁˆ‘”†‡’”‡…‹ƒ–‹‘ˆ”‘ƒ›‡ƒ”Ž‹‡”›‡ƒ”ǡ‹ˆ•—…ŠŽ‘••‘”†‡’”‡…‹ƒ–‹‘‹•
ƒ––”‹„—–ƒ„Ž‡–‘ƒ›‘ˆƒ„‘˜‡†‡†—…–‹‘•Ǣ
ȋ‹‹‹Ȍ ™‹–Š‘—–•‡–‘ˆˆ‘ˆƒ›Ž‘••‘”ƒŽŽ‘™ƒ…‡ˆ‘”—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘†‡‡‡†—Ȁ•͹ʹǡ‹ˆ•—…ŠŽ‘••
‘”†‡’”‡…‹ƒ–‹‘‹•ƒ––”‹„—–ƒ„Ž‡–‘ƒ›‘ˆ–Š‡†‡†—…–‹‘•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹ȌǢƒ†ȋ‹˜ȌǢ
ȋ‹˜Ȍ „›…Žƒ‹‹‰–Š‡†‡’”‡…‹ƒ–‹‘ǡ‹ˆƒ›ǡ—Ȁ•͵ʹǡ‡š…‡’–…Žƒ—•‡ȋ‹‹ƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ–Š‡•ƒ‹†•‡…–‹‘ǡ
†‡–‡”‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Š‡Ž‘••ƒ††‡’”‡…‹ƒ–‹‘”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹‹Ȍƒ†…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡
‰‹˜‡ˆ—ŽŽ‡ˆˆ‡…––‘ƒ†‘ˆ—”–Š‡”†‡†—…–‹‘ˆ‘”•—…ŠŽ‘••‘”†‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”ƒ›•—„•‡“—‡–›‡ƒ”ǣ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡”‡‹•ƒ†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹”‡•’‡…–‘ˆƒ„Ž‘…‘ˆƒ••‡–™Š‹…ŠŠƒ•‘–„‡‡‰‹˜‡ˆ—ŽŽ
‡ˆˆ‡…––‘’”‹‘”–‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲǡ…‘””‡•’‘†‹‰ƒ†Œ—•–‡–•ŠƒŽŽ„‡
ƒ†‡–‘–Š‡™”‹––‡†‘™˜ƒŽ—‡‘ˆ•—…Š„Ž‘…‘ˆƒ••‡–•ƒ•‘–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳͻ‹–Š‡’”‡•…”‹„‡†ƒ‡”ǡ‹ˆ
–Š‡‘’–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‹•‡š‡”…‹•‡†ˆ‘”ƒ’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”„‡‰‹‹‰‘–Š‡
ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲǤ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͸ͳ

…ƒ•‡‘ˆƒ’‡”•‘ǡŠƒ˜‹‰‹–‹–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡ǡ—Ȁ•ͺͲǡ™Š‹…ŠŠƒ•‡š‡”…‹•‡†‘’–‹‘

—†‡” •—„Ǧ•‡…–‹‘ ȋͷȌǡ †‡†—…–‹‘ —†‡” •‡…–‹‘ ͺͲ •ŠƒŽŽ „‡ ƒ˜ƒ‹Žƒ„Ž‡ –‘ •—…Š ‹– •—„Œ‡…– –‘ ˆ—Žϐ‹Ž‡– ‘ˆ –Š‡
…‘†‹–‹‘•…‘–ƒ‹‡†‹–Š‡•ƒ‹†•‡…–‹‘Ǥ
‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›—Ž‡••–Š‡‘’–‹‘‹•‡š‡”…‹•‡†„›–Š‡’‡”•‘‹–Š‡’”‡•…”‹„‡†ƒ‡”
‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†—Ȁ•ͳ͵ͻȋͳȌˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”•‘ˆ‹…‘‡ˆ‘”Ȁ…‘‡…‹‰ʹͲȀʹͳƒ†
•—…Š‘’–‹‘‘…‡‡š‡”…‹•‡†•ŠƒŽŽƒ’’Ž›–‘•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•ǣ
”‘˜‹†‡†–Šƒ–‹…ƒ•‡‘ˆƒ’‡”•‘ǡ™Š‡”‡–Š‡‘’–‹‘‡š‡”…‹•‡†„›‹–—†‡”•‡…–‹‘ͳͳͷŠƒ•„‡‡”‡†‡”‡†‹˜ƒŽ‹†
†—‡–‘˜‹‘Žƒ–‹‘‘ˆ…‘†‹–‹‘•…‘–ƒ‹‡†—Ȁ•ͳͳͷȋʹȌǡ•—…Š’‡”•‘ƒ›‡š‡”…‹•‡‘’–‹‘—†‡”–Š‹••‡…–‹‘ǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‘…‡–Š‡‘’–‹‘Šƒ•„‡‡‡š‡”…‹•‡†ˆ‘”ƒ›’”‡˜‹‘—•›‡ƒ”ǡ‹–…ƒ‘–„‡•—„•‡“—‡–Ž›™‹–Š†”ƒ™
ˆ‘”–Š‡•ƒ‡‘”ƒ›‘–Š‡”’”‡˜‹‘—•›‡ƒ”Ǥ

ƒš‘…‘‡‘ˆ‡™ƒ—ˆƒ…–—”‹‰‘‡•–‹…‘’ƒ‹‡•ȏ‡…–‹‘ͳͳͷȐ
›†‘‡•–‹…ƒ—ˆƒ…–—”‹‰…‘’ƒ›Šƒ•ƒ‘’–‹‘–‘’ƒ›–ƒšƒ–ͳͷΨǡ•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›Šƒ•„‡‡…‘’—–‡†ǡȄ
ȋ‹Ȍ ™‹–Š‘—–ƒ›†‡†—…–‹‘—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͲ‘”…Žƒ—•‡ȋ‹‹ƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵ʹ
‘”•‡…–‹‘͵ʹ‘”•‡…–‹‘͵͵‘”•‡…–‹‘͵͵‘”•—„Ǧ…Žƒ—•‡ȋ‹‹Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹ƒȌ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ
‘ˆ •—„Ǧ•‡…–‹‘ ȋͳȌ ‘” •—„Ǧ•‡…–‹‘ ȋʹȌ ‘” •—„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ •‡…–‹‘ ͵ͷ ‘” •‡…–‹‘ ͵ͷ ‘” •‡…–‹‘
͵ͷ‘”•‡…–‹‘͵ͷ‘”—†‡”ƒ›’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ǧ—†‡”–Š‡Š‡ƒ†‹‰DzǤȄ‡†—…–‹‘•‹
”‡•’‡…–‘ˆ…‡”–ƒ‹‹…‘‡•dz‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͺͲ Ǣ
ȋ‹‹Ȍ ™‹–Š‘—–•‡–‘ˆˆ‘ˆƒ›Ž‘••‘”ƒŽŽ‘™ƒ…‡ˆ‘”—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘†‡‡‡†•‘—†‡”•‡…–‹‘͹ʹǡ‹ˆ•—…Š
Ž‘•• ‘” †‡’”‡…‹ƒ–‹‘ ‹• ƒ––”‹„—–ƒ„Ž‡ –‘ ƒ› ‘ˆ –Š‡ †‡†—…–‹‘• ”‡ˆ‡””‡† –‘ ƒ„‘˜‡Ǣ ƒ† „› …Žƒ‹‹‰ –Š‡
†‡’”‡…‹ƒ–‹‘ǡ‹ˆƒ›ǡ—†‡”ƒ›’”‘˜‹•‹‘‘ˆ•‡…–‹‘͵ʹǡ‡š…‡’–…Žƒ—•‡ȋ‹‹ƒȌ‘ˆ•—„Ǧ•‡…–‹‘‘ˆ–Š‡•ƒ‹†•‡…–‹‘ǡ
†‡–‡”‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
‘™‡˜‡”ǡŽ‘••‡•ƒ††‡’”‡…‹ƒ–‹‘™‘—Ž†„‡†‡‡‡†–Šƒ–ˆ—ŽŽ‡ˆˆ‡…–Šƒ•ƒŽ”‡ƒ†›„‡‡‰‹˜‡ƒ†‘ˆ—”–Š‡”†‡†—…–‹‘
•ŠƒŽŽ„‡ƒŽŽ‘™‡†ˆ‘”ƒ›•—„•‡“—‡–›‡ƒ”•Ǥ
—…Š‘’ƒ›ǣǦ
ȋͳȌ •‹…‘”’‘”ƒ–‡†‘‘”ƒˆ–‡”ͳ•–…–‘„‡”ʹͲͳͻǡƒ†Šƒ•…‘‡…‡†ƒ—ˆƒ…–—”‹‰‘”’”‘†—…–‹‘‘ˆƒ”–‹…Ž‡
‘”–Š‹‰‘‘”„‡ˆ‘”‡͵ͳƒ”…ŠʹͲʹ͵Ǥ
ȋʹȌ •‘–ˆ‘”‡†„›•’Ž‹––‹‰—’‘””‡…‘•–”—…–‹‘‘ˆ„—•‹‡••ƒŽ”‡ƒ†›‹‡š‹•–‡…‡ȋ‡š…‡’–‹‘’”‘˜‹†‡†ˆ‘”
—†‡”–ƒ‹‰ˆ‘”‡†ƒ•ƒ”‡•—Ž–‘ˆ”‡‡•–ƒ„Ž‹•Š‡–ǡ”‡…‘•–”—…–‹‘‘””‡˜‹˜ƒŽ‘ˆ„—•‹‡••”‡ˆ‡””‡†–‘‹
•‡…–‹‘͵͵‘ˆ–Š‡…–ȌǤ
ȋ͵Ȍ ‘‡•‘–—•‡ƒ›„—‹Ž†‹‰’”‡˜‹‘—•Ž›—•‡†ƒ•ƒŠ‘–‡Ž‘”…‘˜‡–‹‘…‡–”‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹”‡•’‡…–
‘ˆ™Š‹…Š†‡†—…–‹‘—†‡”•‡…–‹‘ͺͲǦŠƒ•„‡‡…Žƒ‹‡†ƒ†ƒŽŽ‘™‡†Ǥ
ȋͶȌ •‘–‡‰ƒ‰‡†‹ƒ›„—•‹‡••‘–Š‡”–Šƒ–Š‡ƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘‘ˆƒƒ”–‹…Ž‡‘”–Š‹‰ƒ†”‡•‡ƒ”…Š
‹”‡Žƒ–‹‘–‘‘”†‹•–”‹„—–‹‘‘ˆƒ”–‹…Ž‡‘”–Š‹‰ƒ—ˆƒ…–—”‡†‘”’”‘†—…‡†„›‹–Ǥ
š’Žƒƒ–‹‘ ͳǣ ‘” –Š‡ ’—”’‘•‡• ‘ˆ ƒ„‘˜‡ǡ ƒ› ƒ…Š‹‡”› ‘” ’Žƒ– ™Š‹…Š ™ƒ• —•‡† ‘—–•‹†‡ †‹ƒ „› ƒ› ‘–Š‡”
’‡”•‘•ŠƒŽŽ‘–„‡”‡‰ƒ”†‡†ƒ•ƒ…Š‹‡”›‘”’Žƒ–’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›’—”’‘•‡ǡ‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡
ˆ—Žϐ‹ŽŽ‡†ǡƒ‡Ž›ǣȄ
ȋȌ •—…Šƒ…Š‹‡”›‘”’Žƒ–™ƒ•‘–ǡƒ–ƒ›–‹‡’”‡˜‹‘—•–‘–Š‡†ƒ–‡‘ˆ–Š‡‹•–ƒŽŽƒ–‹‘—•‡†‹†‹ƒǢ
ȋȌ •—…Šƒ…Š‹‡”›‘”’Žƒ–‹•‹’‘”–‡†‹–‘†‹ƒˆ”‘ƒ›…‘—–”›‘—–•‹†‡†‹ƒǢƒ†
ȋȌ ‘†‡†—…–‹‘‘ƒ……‘—–‘ˆ†‡’”‡…‹ƒ–‹‘‹”‡•’‡…–‘ˆ•—…Šƒ…Š‹‡”›‘”’Žƒ–Šƒ•„‡‡ƒŽŽ‘™‡†‘”‹•
ƒŽŽ‘™ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›’‡”•‘ˆ‘”ƒ›’‡”‹‘†’”‹‘”
–‘–Š‡†ƒ–‡‘ˆ–Š‡‹•–ƒŽŽƒ–‹‘‘ˆƒ…Š‹‡”›‘”’Žƒ–„›–Š‡’‡”•‘Ǥ
š’Žƒƒ–‹‘ʹǣŠ‡”‡‹–Š‡…ƒ•‡‘ˆƒ’‡”•‘ǡƒ›ƒ…Š‹‡”›‘”’Žƒ–‘”ƒ›’ƒ”––Š‡”‡‘ˆ’”‡˜‹‘—•Ž›—•‡†ˆ‘”ƒ›
’—”’‘•‡‹•’—––‘—•‡„›–Š‡…‘’ƒ›ƒ†–Š‡–‘–ƒŽ˜ƒŽ—‡‘ˆ•—…Šƒ…Š‹‡”›‘”’Žƒ–‘”’ƒ”––Š‡”‡‘ˆ†‘‡•‘–‡š…‡‡†
 Ͷ͸ʹ Lesson 8 Ȉ EP-TL

ʹͲΨ‘ˆ–Š‡–‘–ƒŽ˜ƒŽ—‡‘ˆ–Š‡ƒ…Š‹‡”›‘”’Žƒ–—•‡†„›–Š‡…‘’ƒ›ǡ–Š‡ǡˆ‘”–Š‡’—”’‘•‡•‘ˆ•—„Ǧ…Žƒ—•‡ǡ–Š‡
…‘†‹–‹‘•’‡…‹ϐ‹‡†–Š‡”‡‹•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡…‘’Ž‹‡†™‹–ŠǢ
š’Žƒƒ–‹‘ǣ ‘”–Š‡”‡‘˜ƒŽ‘ˆ†‘—„–•ǡ‹–‹•Š‡”‡„›…Žƒ”‹ϐ‹‡†–Šƒ––Š‡„—•‹‡••‘ˆƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘‘ˆƒ›
ƒ”–‹…Ž‡‘”–Š‹‰”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ„Ȍ•ŠƒŽŽ‘–‹…Ž—†‡„—•‹‡••‘ˆǡȄ
ȋ‹Ȍ †‡˜‡Ž‘’‡–‘ˆ…‘’—–‡”•‘ˆ–™ƒ”‡‹ƒ›ˆ‘”‘”‹ƒ›‡†‹ƒǢ
ȋ‹‹Ȍ ‹‹‰Ǣ
ȋ‹‹‹Ȍ …‘˜‡”•‹‘‘ˆƒ”„Ž‡„Ž‘…•‘”•‹‹Žƒ”‹–‡•‹–‘•Žƒ„•Ǣ
ȋ‹˜Ȍ „‘––Ž‹‰‘ˆ‰ƒ•‹–‘…›Ž‹†‡”Ǣ
ȋ˜Ȍ ’”‹–‹‰‘ˆ„‘‘•‘”’”‘†—…–‹‘‘ˆ…‹‡ƒ–‘‰”ƒ’Šϐ‹ŽǢ‘”
ȋ˜‹Ȍ ƒ›‘–Š‡”„—•‹‡••ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǢƒ†
Š‡‘’–‹‘‡‡†•–‘„‡‡š‡”…‹•‡†„‡ˆ‘”‡–Š‡†—‡†ƒ–‡ƒ•’‡”•‡…–‹‘ͳ͵ͻȋͳȌˆ‘”ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”
ƒ›’”‡˜‹‘—•›‡ƒ”•–ƒ”–‹‰ˆ”‘ʹͲʹͲǦʹͳ‘”•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•Ǥˆ‘…‡–Š‡‘’–‹‘‹•‡š‡”…‹•‡†…ƒ‘–
„‡™‹–Š†”ƒ™ˆ‘”–Š‡•ƒ‡‘”•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”•Ǥ
”‘˜‹•‹‘••‹‹Žƒ”–‘•‡…–‹‘ͺͲȋͳͲȌ‘ˆ–Š‡…–ƒ”‡ƒ†‡ƒ’’Ž‹…ƒ„Ž‡ˆ‘”–”ƒ•ƒ…–‹‘•„‡–™‡‡…‘‡…–‡†’ƒ”–‹‡•
™Š‹…ŠŠƒ•–Š‡‡ˆˆ‡…–‘ˆ’”‘†—…‹‰‘”‡–Šƒ‘”†‹ƒ”›’”‘ϐ‹––Šƒ–‹‰Š–„‡‡š’‡…–‡†–‘ƒ”‹•‡Ǥ
‘‡•–‹…–”ƒ•ˆ‡”’”‹…‹‰’”‘˜‹•‹‘•—†‡”•‡…–‹‘ͻʹ‘ˆ–Š‡…–‹•„‡‹‰ƒ†‡ƒ’’Ž‹…ƒ„Ž‡–‘•—…Š–”ƒ•ƒ…–‹‘•Ǥ
Š‡…‘””‡•’‘†‹‰ƒ‡†‡–Šƒ•„‡‡ƒ†‡‹•‡…–‹‘ͻʹ‘ˆ–Š‡…––‘…‘•‹†‡”•—…Š–”ƒ•ƒ…–‹‘•ƒ••’‡…‹ϐ‹‡†
†‘‡•–‹…–”ƒ•ƒ…–‹‘•‹‘”†‡”–‘„”‹‰‹–™‹–Š‹–Š‡ƒ„‹–‘ˆ–”ƒ•ˆ‡”’”‹…‹‰’”‘˜‹•‹‘•Ǥ

ȋȌ
‡…–‹‘ ͳͳͷ  ™Š‹…Š ™ƒ• ƒ •’‡…‹ƒŽ ’”‘˜‹•‹‘ ƒ’’Ž‹…ƒ„Ž‡ –‘ ƒ …‘’ƒ› ‹ˆ ‹–• –‘–ƒŽ ‹…‘‡ ƒ• …‘’—–‡† —†‡” –Š‡
…‘‡ƒš…–™ƒ•Ž‡••–Šƒ–Š‹”–›’‡”…‡–‘ˆ‹–•„‘‘’”‘ϐ‹–™ƒ•‹–”‘†—…‡†™‹–Š‡ˆˆ‡…–ˆ”‘ͳǤͶǤͳͻͺͺ„—–™ƒ•
†‹•…‘–‹—‡†™‹–Š‡ˆˆ‡…–ˆ”‘ͳǤͶǤͳͻͻͳǤ–™ƒ•”‡˜‹˜‡†ƒ•‡…–‹‘ͳͳͷ ™‹–Š‡ˆˆ‡…–ˆ”‘ͳǤͶǤͳͻͻ͹ƒ•ƒ’”‘˜‹•‹‘
†‡‡‹‰ –‘–ƒŽ ‹…‘‡ ‡“—ƒŽ –‘ ͵ͲΨ ‘ˆ „‘‘ ’”‘ϐ‹– ‘ˆ …‘’ƒ‹‡• ”‡ˆ‡””‡† –‘ ‡ƒ”Ž‹‡”Ǥ Š‹• ’”‘˜‹•‹‘ ™ƒ• ƒŽ•‘
†‹•…‘–‹—‡†™‹–Š‡ˆˆ‡…–ˆ”‘ͳǤͶǤʹͲͲͳ„—–™ƒ••—„•–‹–—–‡†„›‡…–‹‘ͳͳͷ ‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡•ƒ‡†ƒ–‡ǤŠ‹•
’”‘˜‹•‹‘‹„‹„‡•–Š‡…‘…‡’–‘ˆ‹‹—Ž–‡”ƒ–‡ƒšǤ
‡…‡ǡ–Š‡‡™’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͳͷ ™‡”‡‹•‡”–‡†™Š‹…Šƒ”‡•‹’Ž‡”‹ƒ’’Ž‹…ƒ–‹‘Ǥ
……‘”†‹‰–‘–Š‹••‡…–‹‘ǡ‹ˆ–Š‡‹…‘‡–ƒš’ƒ›ƒ„Ž‡„›ƒ…‘’ƒ›‘‹–•–‘–ƒŽ‹…‘‡ƒ•…‘’—–‡†—†‡”–Š‡
‘”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡ƒš…–‹”‡•’‡…–‘ˆƒ›’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”ǡ‹•
Ž‡••–ŠƒͳͷΨ‘ˆ•—…Š„‘‘’”‘ˆ‹–’Ž—••—”…Šƒ”‰‡’Ž—•‡†—…ƒ–‹‘…‡••–Š‡•—…Š„‘‘’”‘ˆ‹–•ŠƒŽŽ„‡–”‡ƒ–‡†
ƒ•–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›ƒ†–Š‡–ƒš’ƒ›ƒ„Ž‡ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”•ŠƒŽŽ„‡†‡‡‡†–‘„‡
ͳͷΨ ȋƒ†† •—”…Šƒ”‰‡ ƒ† …‡••Ȍ ‘ˆ •—…Š „‘‘ ’”‘ˆ‹–Ǥ Š‹• ‘Ǧ ƒ„•‘Ž—–‡ ’”‘˜‹•‹‘ ™‹ŽŽ ‘˜‡””‹†‡ ƒ› ‘–Š‡”
’”‘˜‹•‹‘‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ǥ
Š—•ǡ™Š‡”‡–Š‡…‘‡Ǧ–ƒš’ƒ›ƒ„Ž‡‹•Ž‡••–ŠƒͳͷΨ‘ˆ‘‘”‘ϐ‹–ǡ•—…Š„‘‘’”‘ϐ‹–™‹ŽŽ„‡†‡‡‡†–‘„‡–‘–ƒŽ
…‘‡ƒ†…‘‡Ǧ–ƒš™‹ŽŽ„‡’ƒ›ƒ„Ž‡̷ͳͷΨ‘•—…Š‘‘”‘ϐ‹–ǤȏͻΨ‘ˆ„‘‘’”‘ϐ‹–•ǡ‹…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡
‹•ƒ—‹–Ž‘…ƒ–‡†‹ƒ–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡ƒ††‡”‹˜‡•‹–•‹…‘‡•‘Ž‡Ž›‹…‘˜‡”–‹„Ž‡
ˆ‘”‡‹‰‡š…Šƒ‰‡Ȑ
”‡’ƒ”ƒ–‹‘‘ˆ”‘ϐ‹–ƒ†‘••Ȁ…ƒ•’‡”–Š‡…Š‡†—Ž‡‘ˆ‘’ƒ‹‡•…–ʹͲͳ͵ǣ
—…Š…‘’ƒ›ƒ••‡••‡‡Šƒ•–‘’”‡’ƒ”‡–Š‡”‘ϐ‹–Ƭ‘••Ȁ…‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ…Š‡†—Ž‡‘ˆ–Š‡
‘’ƒ‹‡•…–ǡʹͲͳ͵Ǥ
‘™‡˜‡”ǡ™Š‹Ž‡’”‡’ƒ”‹‰–Š‡ƒ—ƒŽƒ……‘—–•‹…Ž—†‹‰’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–Ǧ
ȋƒȌ –Š‡ƒ……‘—–‹‰’‘Ž‹…‹‡•Ǣ
ȋ„Ȍ –Š‡ƒ……‘—–‹‰•–ƒ†ƒ”†•ˆ‘ŽŽ‘™‡†ˆ‘”’”‡’ƒ”‹‰•—…Šƒ……‘—–•‹…Ž—†‹‰’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–•Ǣƒ†
ȋ…Ȍ –Š‡‡–Š‘†ƒ†”ƒ–‡•ƒ†‘’–‡†ˆ‘”…ƒŽ…—Žƒ–‹‰–Š‡†‡’”‡…‹ƒ–‹‘ǡ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͸͵

•ŠƒŽŽ„‡–Š‡•ƒ‡ƒ•Šƒ˜‡„‡‡ƒ†‘’–‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ’”‡’ƒ”‹‰•—…Šƒ……‘—–•‹…Ž—†‹‰’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–
ƒ† Žƒ‹† „‡ˆ‘”‡ –Š‡ …‘’ƒ› ƒ– ‹–• ƒ—ƒŽ ‰‡‡”ƒŽ ‡‡–‹‰Ǥ —– ™Š‡”‡ –Š‡ …‘’ƒ› Šƒ• ƒ†‘’–‡† ‘” ƒ†‘’–• –Š‡
Dzϐ‹ƒ…‹ƒŽ›‡ƒ”dzǡ™Š‹…Š‹•†‹ˆˆ‡”‡–ˆ”‘–Š‡’”‡˜‹‘—•›‡ƒ”—†‡”–Š‡…‘‡ƒš…–ǡȋƒȌǡȋ„Ȍƒ†ȋ…Ȍƒˆ‘”‡•ƒ‹†•ŠƒŽŽ
…‘””‡•’‘† –‘ –Š‡ ƒ……‘—–‹‰ ’‘Ž‹…‹‡•ǡ ƒ……‘—–‹‰ •–ƒ†ƒ”†• ƒ† –Š‡ ‡–Š‘† ƒ† ”ƒ–‡• ˆ‘” …ƒŽ…—Žƒ–‹‰ –Š‡
†‡’”‡…‹ƒ–‹‘ ™Š‹…Š Šƒ˜‡ „‡‡ ƒ†‘’–‡† ˆ‘” ’”‡’ƒ”‹‰ •—…Š ƒ……‘—–• ‹…Ž—†‹‰ ’”‘ϐ‹– ƒ† Ž‘•• ƒ……‘—– ˆ‘” •—…Š
ϐ‹ƒ…‹ƒŽ›‡ƒ”‘”’ƒ”–‘ˆ•—…Šϐ‹ƒ…‹ƒŽ›‡ƒ”ˆƒŽŽ‹‰™‹–Š‹–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”Ǥ

š…‡’–‹‘–‘…‘’ƒ‹‡•‹Ǥ‡Ǥ•—”ƒ…‡ǡƒ‹‰‘”Ž‡…–”‹…‹–›ˆ‘”’”‡’ƒ”ƒ–‹‘‘ˆƒ……‘—–•ǣ

•’‡”•‡…–‹‘ͳͳͷ ǡ‡˜‡”›…‘’ƒ›‹•”‡“—‹”‡†–‘’”‡’ƒ”‡‹–•ƒ……‘—–•ƒ•’‡”…Š‡†—Ž‡‘ˆ–Š‡‘’ƒ‹‡•…–ǡ

ʹͲͳ͵Ǥ‘™‡˜‡”ǡƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘’ƒ‹‡•…–ǡ…‡”–ƒ‹…‘’ƒ‹‡•ǡ‡Ǥ‰Ǥǡ•—”ƒ…‡ǡƒ‹‰‘”Ž‡…–”‹…‹–›
‘’ƒ›ǡƒ”‡ƒŽŽ‘™‡†–‘’”‡’ƒ”‡–Š‡‹”’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘••’‡…‹ϐ‹‡†‹–Š‡‹”
”‡‰—Žƒ–‘”›…–•Ǥ
‘”†‡”–‘ƒŽ‹‰–Š‡’”‘˜‹•‹‘•‘ˆ…‘‡Ǧ–ƒš…–™‹–Š–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ǡ™‹–Š‡ˆˆ‡…–ˆ”‘ƒ••‡••‡–›‡ƒ”
ʹͲͳ͵ǦͳͶǡ•‡…–‹‘ͳͳͷ Šƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ––Š‡…‘’ƒ‹‡•™Š‹…Šƒ”‡‘–”‡“—‹”‡†–‘’”‡’ƒ”‡–Š‡‹”
’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡…Š‡†—Ž‡‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ǡ’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–
’”‡’ƒ”‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‹””‡‰—Žƒ–‘”›…–••ŠƒŽŽ„‡–ƒ‡ƒ•ƒ„ƒ•‹•ˆ‘”…‘’—–‹‰–Š‡„‘‘
’”‘ϐ‹–—†‡”•‡…–‹‘ͳͳͷ Ǥ
”‘–Š‡ƒ„‘˜‡‹–…ƒ„‡‘„•‡”˜‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘‡˜‡”›…‘’ƒ›™Š‡–Š‡”’—„Ž‹…‘”
’”‹˜ƒ–‡ƒ†™Š‡–Š‡”†‹ƒ‘”ˆ‘”‡‹‰Ǥ‘™‡˜‡”’”‘˜‹•‹‘•ŠƒŽŽ‘–ƒ’’Ž›–‘ǣ
ȋ‹Ȍ ƒ›‹…‘‡ƒ”‹•‹‰–‘ƒ…‘’ƒ›ˆ”‘Ž‹ˆ‡‹•—”ƒ…‡„—•‹‡••Ǥ
ȋ‹‹Ȍ ƒ’‡”•‘™Š‘Šƒ•‡š‡”…‹•‡†–Š‡‘’–‹‘”‡ˆ‡””‡†–‘—†‡”•‡…–‹‘•ͳͳͷ‘”ͳͳͷǤ
ȋ‹‹‹Ȍ ƒ›•Š‹’’‹‰‹…‘‡ƒ”‹•‹‰–‘ƒ…‘’ƒ›Ž‹ƒ„Ž‡–‘–‘ƒ‰‡–ƒšƒ–‹‘Ǥ
ȋ‹˜Ȍ ƒˆ‘”‡‹‰…‘’ƒ›”‡•‹†‡–‘ˆƒ…‘—–”›™‹–Š™Š‹…Š†‹ƒŠƒ•ƒ‘—„Ž‡ƒšƒ–‹‘˜‘‹†ƒ…‡‰”‡‡‡–
ȋȌƒ†•—…Š…‘’ƒ›†‘‡•‘–Šƒ˜‡ƒ’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǤ
ȋ˜Ȍ –Š‡ˆ‘”‡‹‰…‘’ƒ›‹•ƒ”‡•‹†‡–‘ˆƒ…‘—–”›™‹–Š™Š‹…Š†‹ƒ†‘‡•‘–Šƒ˜‡ƒƒ‰”‡‡‡–ȋȌƒ†
•—…Š…‘’ƒ›‹•‘–”‡“—‹”‡†–‘•‡‡”‡‰‹•–”ƒ–‹‘—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡”‡Žƒ–‹‰–‘
…‘’ƒ‹‡•Ǥ
ȋ˜‹Ȍ ƒˆ‘”‡‹‰…‘’ƒ›ǡ™Š‘•‡–‘–ƒŽ‹…‘‡…‘’”‹•‡•‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ƒ”‹•‹‰ˆ”‘„—•‹‡••”‡ˆ‡””‡†–‘‹
•‡…–‹‘ͶͶǡͶͶǡͶͶǡ‘”ͶͶƒ†•—…Š‹…‘‡Šƒ•„‡‡‘ˆˆ‡”‡†–‘–ƒšƒ––Š‡”ƒ–‡••’‡…‹ϐ‹‡†‹
–Š‘•‡•‡…–‹‘•Ǥ
—‡ –‘ ƒ’’Ž‹…ƒ„‹Ž‹–› ‘ˆ †  ‡…–‹‘ ͳͳͷ  Šƒ• „‡‡ ƒ‡†‡† –‘ …ƒŽ…—Žƒ–‡  ‹ …ƒ•‡ ‘ˆ †  …‘’Ž‹ƒ–
…‘’ƒ‹‡•Ǥ ‘ŽŽ‘™‹‰ƒ”‡•–‡’•ˆ‘”…‘’—–ƒ–‹‘‘ˆ„‘‘’”‘ϐ‹–Ǧ
–‡’ͳǣ ‹†‘—––Š‡‡–’”‘ϐ‹–ȏ„‡ˆ‘”‡‘–Š‡”…‘’”‡Š‡•‹˜‡‹…‘‡ȋȌȐƒ•’‡”•–ƒ–‡‡–‘ˆ’”‘ϐ‹–ƒ†Ž‘••‘ˆ–Š‡
…‘’ƒ›Ǥ
–‡’ʹǣƒ‡ƒ†Œ—•–‡–•™Š‹…Šƒ”‡‰‹˜‡‹‡š‹•–‹‰’”‘˜‹•‹‘•—†‡”•‡…–‹‘ͳͳͷ ȋʹȌǤ
–‡’͵ǣƒ‡•’‡…‹ϐ‹…ƒ†Œ—•–‡–•‹–Š‡…ƒ•‡‘ˆ†‡‡”‰‡”ƒ•‰‹˜‡„›‡™•—„Ǧ•‡…–‹‘ʹ–‘•‡…–‹‘ͳͳͷ Ǥ
–‡’Ͷǣƒ‡ˆ—”–Š‡”ƒ†Œ—•–‡–•’‡”–ƒ‹‹‰–‘‹–‡•–Šƒ–™‹ŽŽ„‡’‡”ƒ‡–Ž›”‡…‘”†‡†‹”‡•‡”˜‡•ȋ‹Ǥ‡Ǥǡ‡˜‡”
–‘„‡”‡…Žƒ••‹ϐ‹‡†–‘–Š‡•–ƒ–‡‡–‘ˆ’”‘ϐ‹–ƒ†Ž‘••ȌǤ

–‡’•–‘ƒŽ…—Žƒ–‡‘‘”‘ϐ‹–
–‡’ͳǣ ‹†‘—–‡–’”‘ϐ‹–ȋ„‡ˆ‘”‡‘–Š‡”…‘’”‡Š‡•‹˜‡‹…‘‡Ȍƒ••Š‘™‹’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ȋ’”‡’ƒ”‡†‹
ƒ……‘”†ƒ…‡™‹–Š’”‘˜‹•‹‘•‘ˆ…Š‡†—Ž‡‘ˆ‘’ƒ‹‡•…–ǡʹͲͳ͵Ǥ
–‡’ʹǣ†Œ—•–‡–•–‘„‡ƒ†‡–‘–Š‡‡–”‘ϐ‹–‹–‡’ͳƒ•‰‹˜‡‹‡š‹•–‹‰’”‘˜‹•‹‘•—†‡”‡…–‹‘ͳͳͷ ȋͳȌǦ
‘ŽŽ‘™‹‰ƒ‘—–••ŠƒŽŽ„‡ƒ††‡†Ǣ‹ˆ†‡„‹–‡†–‘”‘ϐ‹–ƒ†‘••……‘—–ǣ
ȋƒȌ …‘‡ƒšƒ‹†‘”ƒ›ƒ„Ž‡ǣŠ‡ƒ‘—–‘ˆ…‘‡–ƒš’ƒ‹†‘”’ƒ›ƒ„Ž‡ǡƒ†–Š‡’”‘˜‹•‹‘–Š‡”‡‘ˆǢ
Ͷ͸Ͷ Lesson 8 Ȉ EP-TL

Š‡ƒ‘—–‘ˆ‹…‘‡Ǧ–ƒš•ŠƒŽŽ‹…Ž—†‡ǣ
ȋ‹Ȍ ƒ›–ƒš‘†‹•–”‹„—–‡†’”‘ϐ‹–•—†‡”‡…–‹‘ͳͳͷǦ‘”‘†‹•–”‹„—–‡†‹…‘‡—†‡”•‡…–‹‘ͳͳͷǢ
ȏ‘–ƒ’’Ž‹…ƒ„Ž‡™Ǥ‡ǤˆǤͲͳǦͲͶǦʹͲʹͲȐ
ȋ‹‹Ȍ ƒ›‹–‡”‡•–…Šƒ”‰‡†—†‡”–Š‹•…–Ǣƒ†
ȋ‹‹‹Ȍ —”…Šƒ”‰‡
ȋ‹˜Ȍ ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••ȏȋš’Žƒƒ–‹‘ʹ–‘•‡…–‹‘ͳͳͷ ȌȐǤ
Š‡ƒ‘—–‘ˆ…‘‡–ƒš•ŠƒŽŽ‘–‹…Ž—†‡ˆ‘ŽŽ‘™‹‰–ƒš‡•ǣ
ȋ‹Ȍ ǡƒ‹‰…ƒ•Š–”ƒ•ƒ…–‹‘–ƒšǡ‰‹ˆ––ƒšǡ†‹”‡…––ƒš‡•
ȋ‹‹Ȍ –‡”‡•–ǡ’‡ƒŽ–›ǡϐ‹‡ǡ•—”…Šƒ”‰‡ǡŠ‡ƒŽ–Šƒ†‡†—…ƒ–‹‘…‡••‘ƒ„‘˜‡–ƒš‡•Ǥ
ȋ„Ȍ ‡•‡”˜‡ǣŠ‡ƒ‘—–•…ƒ””‹‡†–‘ƒ›”‡•‡”˜‡•ǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†Ǣ‘”
ȋ…Ȍ ”‘˜‹•‹‘ˆ‘”—ƒ•…‡”–ƒ‹‡†Ž‹ƒ„‹Ž‹–›ǣŠ‡ƒ‘—–‘”ƒ‘—–••‡–ƒ•‹†‡–‘’”‘˜‹•‹‘•ƒ†‡ˆ‘”‡‡–‹‰
Ž‹ƒ„‹Ž‹–‹‡•ǡ‘–Š‡”–Šƒƒ•…‡”–ƒ‹‡†Ž‹ƒ„‹Ž‹–‹‡•ǡȋ‹Ǥ‡Ǥǡ—ƒ•…‡”–ƒ‹‡†Ž‹ƒ„‹Ž‹–‹‡•ȌǢ‘”
ȋ†Ȍ ”‘˜‹•‹‘ˆ‘”‘••‡•‘ˆ—„•‹†‹ƒ”›‘’ƒ‹‡•ǣŠ‡ƒ‘—–„›™ƒ›‘ˆ’”‘˜‹•‹‘ˆ‘”Ž‘••‡•‘ˆ•—„•‹†‹ƒ”›
…‘’ƒ‹‡•Ǣ‘”
ȋ‡Ȍ ‹˜‹†‡†’ƒ‹†‘”’”‘’‘•‡†ǣŠ‡ƒ‘—–‘”ƒ‘—–•‘ˆ†‹˜‹†‡†•’ƒ‹†‘”’”‘’‘•‡†Ǣ‘”
ȋˆȌ š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡–‘•‡…–‹‘ͳͲǡ•‡…–‹‘ͳͳƒ†•‡…–‹‘ͳʹǣ–Š‡ƒ‘—–‘”ƒ‘—–•‘ˆ‡š’‡†‹–—”‡
”‡Žƒ–ƒ„Ž‡–‘ƒ›‹…‘‡•–‘™Š‹…Š‡…–‹‘ͳͲ‘”‡…–‹‘ͳͳ‘”‡…–‹‘ͳʹƒ’’Ž›Ǥ
ȋˆƒȌ š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡–‘•Šƒ”‡‹‹…‘‡‘ˆǡǣ–Š‡ƒ‘—–‘”ƒ‘—–•‘ˆ‡š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡
–‘ǡ‹…‘‡ǡ„‡‹‰•Šƒ”‡‘ˆ–Š‡ƒ••‡••‡‡•‹–Š‡‹…‘‡‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ǡ
‘™Š‹…Š‘‹…‘‡Ǧ–ƒš‹•’ƒ›ƒ„Ž‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͺ͸Ǣ‘”
ȋϐ„Ȍ š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡–‘‹…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘ƒƒ••‡••‡‡•ǡ„‡‹‰ƒ ‘”‡‹‰‘’ƒ›ǣŠ‡
ƒ‘—–‘”ƒ‘—–•‘ˆ‡š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡–‘‹…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘ƒƒ••‡••‡‡•ǡ„‡‹‰ƒˆ‘”‡‹‰
…‘’ƒ›ǡˆ”‘ǡǦ
Ȉ –Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰‘–”ƒ•ƒ…–‹‘•‹•‡…—”‹–‹‡•Ǣ‘”
Ȉ –Š‡‹–‡”‡•–ǡ†‹˜‹†‡†ǡ”‘›ƒŽ–›‘”ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ––Š‡”ƒ–‡‘””ƒ–‡•
•’‡…‹ϐ‹‡†‹Šƒ’–‡”ȋ‹Ǥ‡Ǥǡ‡…–‹‘ͳͳͷ–‘ͳͳͷȌ

 ‹ˆ–Š‡‹…‘‡Ǧ–ƒš’ƒ›ƒ„Ž‡–Š‡”‡‘‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‘”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ‘–Š‡”–Šƒ–Š‡
’”‘˜‹•‹‘•‰‘˜‡”‹‰ǡ‹•ƒ–ƒ”ƒ–‡Ž‡••–Šƒ–Š‡”ƒ–‡•’‡…‹ϐ‹‡†‹‡…–‹‘ͳͳͷ ȋͳȌ‹Ǥ‡ǤǡͳͷΨǢ‘”
ȋˆ…Ȍ ‘–‹‘ƒŽŽ‘••‘–”ƒ•ˆ‡”‘ˆƒƒ’‹–ƒŽ••‡–ȂŠ‡ƒ‘—–”‡’”‡•‡–‹‰‘–‹‘ƒŽŽ‘••‘–”ƒ•ˆ‡”‘ˆƒ
…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰•Šƒ”‡‘”ƒ•’‡…‹ƒŽ’—”’‘•‡˜‡Š‹…Ž‡–‘ƒ„—•‹‡••–”—•–‹‡š…Šƒ‰‡‘ˆ—‹–•ƒŽŽ‘––‡†„›
–Š‡–”—•–”‡ˆ‡””‡†–‘‹•‡…–‹‘Ͷ͹ȋš˜‹‹Ȍ”
Ȉ –Š‡ƒ‘—–”‡’”‡•‡–‹‰‘–‹‘ƒŽŽ‘••”‡•—Ž–‹‰ˆ”‘ƒ›…Šƒ‰‡‹…ƒ””›‹‰ƒ‘—–‘ˆ•ƒ‹†
—‹–•‘”
Ȉ –Š‡ƒ‘—–‘ˆŽ‘••‘–”ƒ•ˆ‡”‘ˆ—‹–•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋš˜‹‹Ȍ‘ˆ•‡…–‹‘Ͷ͹™Š‡–Š‡”‘”‘–‹–
ƒ’’‡ƒ”•‹’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–Ǥ

ȋˆ†Ȍ š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡–‘…‘‡„›™ƒ›‘ˆ‘›ƒŽ–›ǣŠ‡ƒ‘—–‘”ƒ‘—–•‘ˆ‡š’‡†‹–—”‡”‡Žƒ–ƒ„Ž‡

–‘‹…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›‹”‡•’‡…–‘ˆ’ƒ–‡–…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”•‡…–‹‘ͳͳͷ Ǣ
ȋ‰Ȍ ‡’”‡…‹ƒ–‹‘ǣŠ‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘
ȋŠȌ ‡ˆ‡””‡†ƒšƒ†”‘˜‹•‹‘•ǣŠ‡ƒ‘—–‘ˆ†‡ˆ‡””‡†–ƒšƒ†’”‘˜‹•‹‘•–Š‡”‡‘ˆ
ȋ‹Ȍ ”‘˜‹•‹‘ˆ‘”†‹‹—–‹‘‹–Š‡˜ƒŽ—‡‘ˆƒ›••‡–ǣŠ‡ƒ‘—–‘”ƒ‘—–••‡–ƒ•‹†‡ƒ•’”‘˜‹•‹‘ˆ‘”
†‹‹—–‹‘‹–Š‡˜ƒŽ—‡‘ˆƒ›ƒ••‡–‡Ǥ‰Ǥǡ’”‘˜‹•‹‘ˆ‘”„ƒ†ƒ††‘—„–ˆ—Ž†‡„–•ƒ†’”‘˜‹•‹‘ˆ‘”‹’ƒ‹”‡–
Ž‘••‡•Ǥ
ȋŒȌ ‘—–•–ƒ†‹‰‹‡˜ƒŽ—ƒ–‹‘‡•‡”˜‡ǣŠ‡ƒ‘—–•–ƒ†‹‰‹”‡˜ƒŽ—ƒ–‹‘”‡•‡”˜‡”‡Žƒ–‹‰–‘”‡˜ƒŽ—‡†
ƒ••‡–‘–Š‡”‡–‹”‡‡–‘”†‹•’‘•ƒŽ‘ˆ•—…Šƒ••‡–‹ˆ•—…Š’”‘ϐ‹–‹•‘–…”‡†‹–‡†–‘’”‘ˆ‹–ƒ†Ž‘••ƒ……‘—–Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͸ͷ

ȋȌ ‘—–‘ˆ‰ƒ‹‘–”ƒ•ˆ‡”‘ˆ’‡…‹ϐ‹‡†‹–•ǣ–Š‡ƒ‘—–‘ˆ‰ƒ‹‘–”ƒ•ˆ‡”‘ˆ—‹–•”‡ˆ‡””‡†–‘‹
…Žƒ—•‡ȋš˜‹‹Ȍ‘ˆ•‡…–‹‘Ͷ͹…‘’—–‡†„›–ƒ‹‰‹–‘ƒ……‘—––Š‡ǣ
Ȉ …‘•–‘ˆ–Š‡•Šƒ”‡•‡š…Šƒ‰‡†™‹–Š—‹–•”‡ˆ‡””‡†–‘‹–Š‡•ƒ‹†…Žƒ—•‡‘”
Ȉ –Š‡…ƒ””›‹‰ƒ‘—–‘ˆ–Š‡•Šƒ”‡•ƒ––Š‡–‹‡‘ˆ‡š…Šƒ‰‡™Š‡”‡•—…Š•Šƒ”‡•ƒ”‡…ƒ””‹‡†ƒ–ƒ˜ƒŽ—‡
‘–Š‡”–Šƒ–Š‡…‘•––Š”‘—‰Š’”‘ϐ‹–‘”Ž‘••ƒ……‘—–ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ

‘—–•–‘„‡†‡†—…–‡†ˆ”‘‡–’”‘ϐ‹–‡–‹‘‡†‹–‡’ͳȂ
ȋ‹Ȍ ‘—–™‹–Š†”ƒ™ˆ”‘ƒ›‡•‡”˜‡•‘””‘˜‹•‹‘•ǣŠ‡ƒ‘—–™‹–Š†”ƒ™ˆ”‘ƒ›”‡•‡”˜‡•‘”
’”‘˜‹•‹‘•‹ˆƒ›•—…Šƒ‘—–‹•…”‡†‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–Ǣ
 ”‘˜‹†‡†–Šƒ–ǡ™Š‡”‡–Š‹••‡…–‹‘‹•ƒ’’Ž‹…ƒ„Ž‡–‘ƒ••‡••‡‡•‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡ–Š‡ƒ‘—–™‹–Š†”ƒ™
ˆ”‘”‡•‡”˜‡•…”‡ƒ–‡†‘”’”‘˜‹•‹‘•ƒ†‡‹ƒ’”‡˜‹‘—•›‡ƒ””‡Ž‡˜ƒ––‘–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰
‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹Žǡͳͻͻ͹•ŠƒŽŽ‘–„‡”‡†—…‡†ˆ”‘–Š‡„‘‘’”‘ϐ‹–—Ž‡••–Š‡„‘‘’”‘ϐ‹–‘ˆ
•—…Š ›‡ƒ” Šƒ• „‡‡ ‹…”‡ƒ•‡† „› –Š‘•‡ ”‡•‡”˜‡• ‘” ’”‘˜‹•‹‘• ȋ‘—– ‘ˆ ™Š‹…Š –Š‡ •ƒ‹† ƒ‘—– ™ƒ•
™‹–Š†”ƒ™Ȍ—†‡”–Š‹•š’Žƒƒ–‹‘‘”š’Žƒƒ–‹‘„‡Ž‘™•‡…‘†’”‘˜‹•‘–‘‡…–‹‘ͳͳͷ ǡƒ•–Š‡…ƒ•‡
ƒ›„‡Ǣ‘”
 ‘–Š‡”™‘”†•ǡ‹ˆƒ‘—–‹•™‹–Š†”ƒ™ˆ”‘’”‘˜‹•‹‘•Ȁ”‡•‡”˜‡‘–ƒŽŽ‘™‡†ƒ•†‡†—…–‹‘‡ƒ”Ž‹‡”ǡ‹–™‹ŽŽ
‘–„‡ƒ††‡†ȋ–ƒš‡†Ȍƒ‰ƒ‹ǢŠ‘™‡˜‡”ǡ‹ƒ›‘–Š‡”…ƒ•‡–Š‡™‹–Š†”ƒ™ƒŽ™‹ŽŽ„‡–ƒš‡†Ǥ
ȋ‹‹Ȍ …‘‡–‘™Š‹…Šƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͲ‘”‡…–‹‘ͳͳ‘”‡…–‹‘ͳʹǣ–Š‡ƒ‘—–‘ˆ‹…‘‡–‘
™Š‹…Šƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͲ‘”‡…–‹‘ͳͳ‘”‡…–‹‘ͳʹƒ’’Ž›ǡ‹ˆƒ›•—…Šƒ‘—–‹•…”‡†‹–‡†
–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–Ǣ‘”
ȋ‹‹ƒȌ ‡’”‡…‹ƒ–‹‘ȋ‡š…Ž—†‹‰”‡˜ƒŽ—ƒ–‹‘ȌǣŠ‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘†‡„‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–
ȋ‡š…Ž—†‹‰–Š‡†‡’”‡…‹ƒ–‹‘‘ƒ……‘—–‘ˆ”‡˜ƒŽ—ƒ–‹‘‘ˆƒ••‡–•ȌǢ‘”
ȋ‹‹„Ȍ ‘—–™‹–Š†”ƒ™ˆ”‘‡˜ƒŽ—ƒ–‹‘‡•‡”˜‡ǣŠ‡ƒ‘—–™‹–Š†”ƒ™ˆ”‘”‡˜ƒŽ—ƒ–‹‘”‡•‡”˜‡ƒ†
…”‡†‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ǡ–‘–Š‡‡š–‡–‹–†‘‡•‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ†‡’”‡…‹ƒ–‹‘‘
ƒ……‘—–‘ˆ”‡˜ƒŽ—ƒ–‹‘‘ˆƒ••‡–•”‡ˆ‡””‡†–‘‹Žƒ—•‡ȋ‹‹ƒȌǢ‘”
ȋ‹‹…Ȍ Šƒ”‡‘ˆ–Š‡ƒ••‡••‡‡•‹–Š‡…‘‡‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ǣŠ‡ƒ‘—–
‘ˆ‹…‘‡ǡ„‡‹‰–Š‡•Šƒ”‡‘ˆ–Š‡ƒ••‡••‡‡•‹–Š‡‹…‘‡‘ˆƒƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•ǡ
‘™Š‹…Š‘‹…‘‡Ǧ–ƒš‹•’ƒ›ƒ„Ž‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͺ͸ǡ‹ˆƒ›ǡ•—…Šƒ‘—–‹•
…”‡†‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–Ǣ‘”
ȋ‹‹†Ȍ …‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘ƒ••‡••‡‡•ǡ„‡‹‰ƒˆ‘”‡‹‰…‘’ƒ›ǣŠ‡ƒ‘—–‘ˆ‹…‘‡ƒ……”—‹‰‘”
ƒ”‹•‹‰–‘ƒ••‡••‡‡•ǡ„‡‹‰ƒˆ‘”‡‹‰…‘’ƒ›ǡˆ”‘ǡǦ
ȋȌ –Š‡…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰‘–”ƒ•ƒ…–‹‘•‹•‡…—”‹–‹‡•Ǣ‘”
ȋȌ –Š‡‹–‡”‡•–ǡ†‹˜‹†‡†ǡ”‘›ƒŽ–›‘”ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ––Š‡”ƒ–‡‘””ƒ–‡•
•’‡…‹ϐ‹‡†‹Šƒ’–‡”ǡȋ‹Ǥ‡Ǥǡ—†‡”•‡…–‹‘ͳͳͷ–‘ͳͳͷȌ
 ‹ˆ •—…Š ‹…‘‡ ‹• …”‡†‹–‡† –‘ –Š‡ ’”‘ϐ‹– ƒ† Ž‘•• ƒ……‘—– ƒ† –Š‡ ‹…‘‡Ǧ–ƒš ’ƒ›ƒ„Ž‡ –Š‡”‡‘ ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡‘”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ‘–Š‡”–Šƒ–Š‡’”‘˜‹•‹‘•‘ˆǡ‹•ƒ–ƒ”ƒ–‡Ž‡••
–Šƒ–Š‡”ƒ–‡•’‡…‹ϐ‹‡†‹•‡…–‹‘ͳͳͷ ȋͳȌ‹Ǥ‡ǤǡͳͷΨǢ‘”
ȋ‹‹‡Ȍ ‘–‹‘ƒŽ‰ƒ‹‘–”ƒ•ˆ‡”‘ˆƒƒ’‹–ƒŽ••‡–ǣŠ‡ƒ‘—–”‡’”‡•‡–‹‰ǣ
ȋȌ ‘–‹‘ƒŽ‰ƒ‹‘–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–ǡ„‡‹‰•Šƒ”‡‘ˆƒ•’‡…‹ƒŽ’—”’‘•‡˜‡Š‹…Ž‡–‘ƒ„—•‹‡••
–”—•–‹‡š…Šƒ‰‡‘ˆ—‹–•ƒŽŽ‘––‡†„›–Šƒ––”—•–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋš˜‹‹Ȍ‘ˆ•‡…–‹‘Ͷ͹Ǣ‘”
ȋȌ ‘–‹‘ƒŽ‰ƒ‹”‡•—Ž–‹‰ˆ”‘ƒ›…Šƒ‰‡‹…ƒ””›‹‰ƒ‘—–‘ˆ•ƒ‹†—‹–•Ǣ‘”
ȋȌ ‰ƒ‹‘–”ƒ•ˆ‡”‘ˆ—‹–•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋš˜‹‹Ȍ‘ˆ•‡…–‹‘Ͷ͹ǡ‹ˆƒ›ǡ…”‡†‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†
Ž‘••ƒ……‘—–Ǣ‘”
ȋ‹‹ˆȌ ‘—–‘ˆŽ‘••‘–”ƒ•ˆ‡”‘ˆ’‡…‹ϐ‹‡†‹–•ǣŠ‡ƒ‘—–‘ˆŽ‘••‘–”ƒ•ˆ‡”‘ˆ—‹–•”‡ˆ‡””‡†–‘‹
…Žƒ—•‡ȋš˜‹‹Ȍ‘ˆ•‡…–‹‘Ͷ͹…‘’—–‡†„›–ƒ‹‰‹–‘ƒ……‘—––Š‡…‘•–‘ˆ–Š‡•Šƒ”‡•‡š…Šƒ‰‡†™‹–Š—‹–•
”‡ˆ‡””‡†–‘‹–Š‡•ƒ‹†…Žƒ—•‡‘”–Š‡…ƒ””›‹‰ƒ‘—–‘ˆ–Š‡•Šƒ”‡•ƒ––Š‡–‹‡‘ˆ‡š…Šƒ‰‡™Š‡”‡•—…Š
•Šƒ”‡•ƒ”‡…ƒ””‹‡†ƒ–ƒ˜ƒŽ—‡‘–Š‡”–Šƒ–Š‡…‘•––Š”‘—‰Š’”‘ϐ‹–‘”Ž‘••ƒ……‘—–ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǣ
 Ͷ͸͸ Lesson 8 Ȉ EP-TL

ȋ‹‹‰Ȍ…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›‹”‡•’‡…–‘ˆ’ƒ–‡–ǣŠ‡ƒ‘—–‘ˆ‹…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›‹”‡•’‡…–‘ˆ
’ƒ–‡–…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”•‡…–‹‘ͳͳͷ Ǣ‘”
ȋ‹‹ŠȌ ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒ†„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••ǣ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘
ƒ†Ž‘••„”‘—‰Š–ˆ‘”™ƒ”†‹…ƒ•‡‘ˆǣ
Ȉ ƒ …‘’ƒ›ǡ ƒ† ‹–• •—„•‹†‹ƒ”› ƒ† –Š‡ •—„•‹†‹ƒ”› ‘ˆ •—…Š •—„•‹†‹ƒ”›ǡ ™Š‡”‡ǡ –Š‡ ”‹„—ƒŽǡ ‘ ƒ
ƒ’’Ž‹…ƒ–‹‘‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”•‡…–‹‘ʹͶͳ‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵Šƒ•
•—•’‡†‡† –Š‡ ‘ƒ”† ‘ˆ ‹”‡…–‘”• ‘ˆ •—…Š …‘’ƒ› ƒ† Šƒ• ƒ’’‘‹–‡† ‡™ †‹”‡…–‘”• ™Š‘ ƒ”‡
‘‹ƒ–‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”•‡…–‹‘ʹͶʹ‘ˆ–Š‡•ƒ‹†…–Ǣ
Ȉ –Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒ†„”‘—‰Š–ˆ‘”™ƒ”†Ž‘••‹…ƒ•‡‘ˆƒ…‘ƒ‰ƒ‹•–
™Š‘ ƒ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” …‘”’‘”ƒ–‡ ‹•‘Ž˜‡…› ”‡•‘Ž—–‹‘ ‹• ƒ†‹––‡† —†‡” –Š‡ •‘Ž˜‡…› ƒ†
ƒ”—’–…›‘†‡ǡʹͲͳ͸Ǥ

 –ƒ›„‡‘–‡†–Šƒ–Ž‘••†‘‡•‘–‹…Ž—†‡†‡’”‡…‹ƒ–‹‘Ǥ
 …‘’ƒ›™‘—Ž†„‡ƒ•—„•‹†‹ƒ”›‘ˆƒ‘–Š‡”…‘’ƒ›‹ˆ•—…Š‘–Š‡”…‘’ƒ›Š‘Ž†•‘”‡–ŠƒŠƒŽˆ‹–Š‡
‘‹ƒŽ˜ƒŽ—‡‘ˆ‡“—‹–›•Šƒ”‡…ƒ’‹–ƒŽ‘ˆ–Š‡…‘’ƒ›Ǥ
ȋ‹‹‹Ȍ Š‡ƒ‘—–‘ˆŽ‘••„”‘—‰Š–ˆ‘”™ƒ”†‘”—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ǡ™Š‹…Š‡˜‡”‹•Ž‡••ǡƒ•’‡”„‘‘•
‘ˆƒ……‘—–Ǥ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Žƒ—•‡ǡ–Š‡Ž‘•••ŠƒŽŽ‘–‹…Ž—†‡†‡’”‡…‹ƒ–‹‘ǤŠ‡”‡ˆ‘”‡ǡ‹ƒ…ƒ•‡
™Š‡”‡ƒƒ••‡••‡‡•Šƒ••Š‘™’”‘ϐ‹–‹ƒ›‡ƒ”ǡ„—–ƒˆ–‡”ƒ†Œ—•–‡–‘ˆ†‡’”‡…‹ƒ–‹‘‹–”‡•—Ž–•’”‘ϐ‹–‘”Ž‘••ǡ
‘ ƒ†Œ—•–‡– ‹ „‘‘ ’”‘ϐ‹– ‹• ƒŽŽ‘™‡†Ǣ ‘” ȋ‹ …ƒ•‡ ‘ˆ ƒ …‘’ƒ› ‘–Š‡” –Šƒ …‘’ƒ› —†‡” ‰‘‹‰
‹•‘Ž˜‡…›’”‘…‡‡†‹‰•—†‡”•‘Ž˜‡…›ƒ†ƒ”—’–…›‘†‡ǡʹͲͳ͸Ȍ
ȋ‹˜Ȍ ”‘ϐ‹–•‘ˆ‹…†—•–”‹ƒŽ‘’ƒ›ǣŠ‡ƒ‘—–‘ˆ’”‘ϐ‹–•‘ˆ•‹…‹†—•–”‹ƒŽ…‘’ƒ›ˆ‘”–Š‡ƒ••‡••‡–
›‡ƒ” …‘‡…‹‰ ‘ ƒ† ˆ”‘ –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –Š‡ •ƒ‹†
…‘’ƒ›Šƒ•„‡…‘‡ƒ•‹…‹†—•–”‹ƒŽ…‘’ƒ›—†‡”—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͳ͹‘ˆ–Š‡‹…†—•–”‹ƒŽ
‘’ƒ‹‡•ȋ’‡…‹ƒŽ”‘˜‹•‹‘•Ȍ…–ǡͳͻͺͷƒ†‡†‹‰™‹–Š–Š‡ƒ••‡••‡–›‡ƒ”†—”‹‰™Š‹…Š–Š‡‡–‹”‡
‡–™‘”–Š‘ˆ•—…Š…‘’ƒ›„‡…‘‡•‡“—ƒŽ–‘‘”‡š…‡‡†•–Š‡ƒ……——Žƒ–‡†Ž‘••‡•ǤDz‡–‘”–Šdz•ŠƒŽŽŠƒ˜‡
–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹Žƒ—•‡ȋ‰ƒȌ‘ˆ—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘͵‘ˆ–Š‡‹…†—•–”‹ƒŽ‘’ƒ‹‡•
ȋ’‡…‹ƒŽ”‘˜‹•‹‘•Ȍ…–ǡͳͻͺͷǤ
ȋ˜Ȍ ‡ˆ‡””‡†ƒšǣŠ‡ƒ‘—–‘ˆ†‡ˆ‡””‡†–ƒšǡ‹ˆƒ›•—…Šƒ‘—–‹•…”‡†‹–‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–Ǥ
‘’—–ƒ–‹‘‘ˆ‘‘”‘ϐ‹–ˆ‘”†…‘’Ž‹ƒ–‘’ƒ‹‡•ǣ

Š‡ ‡–”ƒŽ
‘˜‡”‡– Šƒ• ‘–‹ϐ‹‡† –Š‡ †‹ƒ ……‘—–‹‰ –ƒ†ƒ”†• ȋ† Ȍ ™Š‹…Š ƒ”‡ …‘˜‡”‰‡† ™‹–Š
–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡’‘”–‹‰–ƒ†ƒ”†•ȋ Ȍƒ†’”‡•…”‹„‡†–Š‡‘’ƒ‹‡•ȋ†‹ƒ……‘—–‹‰–ƒ†ƒ”†•Ȍ
—Ž‡•ǡʹͲͳͷ™Š‹…ŠŽƒ›†‘™–Š‡”‘ƒ†ƒ’ˆ‘”‹’Ž‡‡–ƒ–‹‘‘ˆ–Š‡•‡†Ǥ
•–Š‡„‘‘’”‘ϐ‹–„ƒ•‡†‘†…‘’Ž‹ƒ–ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–•‹•Ž‹‡Ž›–‘„‡†‹ˆˆ‡”‡–ˆ”‘–Š‡„‘‘
’”‘ϐ‹– „ƒ•‡† ‘ ‡š‹•–‹‰ †‹ƒ
ǡ •—„Ǧ•‡…–‹‘• ȋʹȌǡ ȋʹȌ ƒ† ȋʹȌ ‘ˆ •‡…–‹‘ ͳͳͷ  ’”‘˜‹†‡• –Š‡
ˆ”ƒ‡™‘” ˆ‘” …‘’—–ƒ–‹‘ ‘ˆ „‘‘ ’”‘ϐ‹– ˆ‘” †  …‘’Ž‹ƒ– …‘’ƒ‹‡• ‹ –Š‡ ›‡ƒ” ‘ˆ ƒ†‘’–‹‘ ƒ†
–Š‡”‡ƒˆ–‡”Ǥ
‘†…‘’Ž‹ƒ–ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–ȏ‡…–‹‘ͳͳͷ ȋʹȌȐ
…ƒ•‡‘ˆƒ…‘’ƒ›™Š‘•‡ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–•ƒ”‡†”ƒ™—’‹…‘’Ž‹ƒ…‡™‹–Š–Š‡†‹ƒ……‘—–‹‰
–ƒ†ƒ”†•ȋ†•Ȍ•’‡…‹ϐ‹‡†‹‡š—”‡–‘–Š‡‘’ƒ‹‡•ȋ†‹ƒ……‘—–‹‰–ƒ†ƒ”†•Ȍ—Ž‡•ǡʹͲͳͷǡ
–Š‡ˆ‘ŽŽ‘™‹‰ƒ††‹–‹‘ƒŽƒ†Œ—•–‡–••ŠƒŽŽ„‡†‘‡–‘–Š‡„‘‘’”‘ϐ‹–ƒ•…‘’—–‡†ƒ„‘˜‡‹’‘‹–‘Ǥȋ‹‹‹Ȍƒ•
’‡”•‡…–‹‘ͳͳͷ ȋʹȌ”‡ƒ†™‹–Šš’Žƒƒ–‹‘ͳȂ
ȋƒȌ ‹…”‡ƒ•‡† „› ƒŽŽ ƒ‘—–• …”‡†‹–‡† –‘ ‘–Š‡” …‘’”‡Š‡•‹˜‡ ‹…‘‡ ‹ –Š‡ •–ƒ–‡‡– ‘ˆ ’”‘ϐ‹– ƒ† Ž‘••
—†‡”–Š‡Š‡ƒ†Dz–‡•–Šƒ–™‹ŽŽ‘–„‡”‡Ǧ…Žƒ••‹ϐ‹‡†–‘’”‘ϐ‹–‘”Ž‘••dzǢ
ȋ„Ȍ †‡…”‡ƒ•‡†„›ƒŽŽƒ‘—–•†‡„‹–‡†–‘‘–Š‡”…‘’”‡Š‡•‹˜‡‹…‘‡‹–Š‡•–ƒ–‡‡–‘ˆ’”‘ϐ‹–ƒ†Ž‘••—†‡”
–Š‡Š‡ƒ†Dz–‡•–Šƒ–™‹ŽŽ‘–„‡”‡Ǧ…Žƒ••‹ϐ‹‡†–‘’”‘ϐ‹–‘”Ž‘••dzǢ
 ‘™‡˜‡”ǡ‘ƒ†Œ—•–‡–•ŠƒŽŽ„‡ƒ†‡™Š‡”‡–Š‡ƒ‘—–…”‡†‹–‡†‘”†‡„‹–‡†–‘‘–Š‡”…‘’”‡Š‡•‹˜‡
‹…‘‡—†‡”–Š‡Š‡ƒ†Dz–‡•–Šƒ–™‹ŽŽ‘–„‡”‡Ǧ…Žƒ••‹ϐ‹‡†–‘’”‘ϐ‹–‘”Ž‘••dzǡ‹”‡•’‡…–‘ˆȂ
Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͸͹

ȋ‹Ȍ ‡˜ƒŽ—ƒ–‹‘•—”’Ž—•ˆ‘”ƒ••‡–•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡†‹ƒ……‘—–‹‰–ƒ†ƒ”†•ͳ͸ƒ†

†‹ƒ……‘—–‹‰–ƒ†ƒ”†•͵ͺǢ‘”
ȋ‹‹Ȍ
ƒ‹• ‘” Ž‘••‡• ˆ”‘ ‹˜‡•–‡–• ‹ ‡“—‹–› ‹•–”—‡–• †‡•‹‰ƒ–‡† ƒ– ˆƒ‹” ˜ƒŽ—‡ –Š”‘—‰Š
‘–Š‡”…‘’”‡Š‡•‹˜‡‹…‘‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡†‹ƒ……‘—–‹‰–ƒ†ƒ”†•ͳͲͻǤȏ ‹”•–
’”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌȐ
 ‘™‡˜‡”ǡ–Š‡„‘‘’”‘ϐ‹–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‹™Š‹…Š•—…Šƒ••‡–‘”‹˜‡•–‡–‹•”‡–‹”‡†ǡ
†‹•’‘•‡†ǡ ”‡ƒŽ‹•‡† ‘” ‘–Š‡”™‹•‡ –”ƒ•ˆ‡””‡†ǡ •ŠƒŽŽ „‡ ‹…”‡ƒ•‡† ‘” †‡…”‡ƒ•‡†ǡ ƒ• –Š‡ …ƒ•‡
ƒ›„‡ǡ„›–Š‡ƒ‘—–‘”–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•ƒ•”‡ˆ‡””‡†–‘‹–Š‡ϐ‹”•–’”‘˜‹•‘ˆ‘”
–Š‡ ’”‡˜‹‘—• ›‡ƒ” ‘” ƒ› ‘ˆ –Š‡ ’”‡…‡†‹‰ ’”‡˜‹‘—• ›‡ƒ”• ƒ† ”‡Žƒ–ƒ„Ž‡ –‘ •—…Š ƒ••‡– ‘”
‹˜‡•–‡–ȏ‡…‘†’”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌȐ
 Š‡  ‹…Ž—†‡• …‡”–ƒ‹ ‹–‡• –Šƒ– ™‹ŽŽ ’‡”ƒ‡–Ž› „‡ ”‡…‘”†‡† ‹ ”‡•‡”˜‡• ƒ† Š‡…‡ ‡˜‡” „‡
”‡…Žƒ••‹ϐ‹‡†–‘•–ƒ–‡‡–‘ˆ’”‘ϐ‹–ƒ†Ž‘••‹…Ž—†‡†‹…‘’—–ƒ–‹‘‘ˆ„‘‘’”‘ϐ‹–Ǥ ‘ŽŽ‘™‹‰‹–‡••ŠƒŽŽ
„‡‹…Ž—†‡†‹–Š‡„‘‘’”‘ϐ‹–•ˆ‘”–Š‡’—”’‘•‡•ƒ•‡š’Žƒ‹‡†—†‡”ǣ
ͳǤ Šƒ‰‡• ‹ ”‡˜ƒŽ—ƒ–‹‘ •—”’Ž—• ‘ˆ ”‘’‡”–›ǡ Žƒ– ‘” “—‹’‡– ȋȌ ƒ† –ƒ‰‹„Ž‡
ƒ••‡–•ȋ†ͳ͸ƒ†͵ͺȌ
Ȉ ‡˜ƒŽ—ƒ–‹‘”‡•‡”˜‡…”‡†‹–‡†‘”†‡„‹–‡†–‘•ŠƒŽŽ‘–„‡ƒ†Œ—•–‡†‹–Š‡„‘‘’”‘ϐ‹–•‹
–Š‡›‡ƒ”‹™Š‹…Š‹–‹•†‡„‹–‡†‘”…”‡†‹–‡†Ǥȏ ‹”•–’”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌȐ
Ȉ –•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡„‘‘’”‘ϐ‹–‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡••‡–Ȁ˜‡•–‡–‹•”‡–‹”‡†ǡ
†‹•’‘•‡†ǡ”‡ƒŽ‹œ‡†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†Ǥȏ‡…‘†”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌȐ

ʹǤ
ƒ‹•ƒ†Ž‘••‡•ˆ”‘˜‡•–‡–•‹‡“—‹–›‹•–”—‡–•†‡•‹‰ƒ–‡†ƒ–ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š
ȋ†ͳͲͻȌǤ
Ȉ
ƒ‹‘”Ž‘••ˆ”‘•—…Š˜‡•–‡–•†‡„‹–‡†Ȁ…”‡†‹–‡†–‘•ŠƒŽŽ‘–„‡ƒ†Œ—•–‡†‹„‘‘
’”‘ϐ‹–•‹–Š‡›‡ƒ”‹™Š‹…Š‹–‹•…”‡†‹–‡†Ȁ†‡„‹–‡†Ǥ ‹”•–’”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌǤ
Ȉ – •ŠƒŽŽ „‡ ƒ†Œ—•–‡† ‹ „‘‘ ’”‘ϐ‹–• ‹ –Š‡ ›‡ƒ” ‹ ™Š‹…Š ‹˜‡•–‡– ‹• ”‡–‹”‡†Ȁ†‹•’‘•‡†Ȁ
”‡ƒŽ‹œ‡†Ǥȏ‡…‘†’”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌȐ

͵Ǥ ‡Ǧ‡ƒ•—”‡‡–•‘ˆ‡ϐ‹‡†‡‡ϐ‹–Žƒ•ȋ†ͳͻȌǦ–•ŠƒŽŽ„‡ƒ†Œ—•–‡†‹„‘‘’”‘ϐ‹–•

‡˜‡”››‡ƒ”‹™Š‹…Š•—…Š”‡Ǧ‡ƒ•—”‡‡–‰ƒ‹ȀŽ‘••ƒ”‹•‡•Ǥ
ͶǤ ›‘–Š‡”–‡Ǧ–™‹ŽŽ„‡ƒ†Œ—•–‡†‹„‘‘’”‘ϐ‹–•‡˜‡”››‡ƒ”‹™Š‹…Š•—…Š’”‘ϐ‹–ȀŽ‘••ƒ”‹•‡•Ǥ
ȋ…Ȍ …”‡ƒ•‡† „› ƒ‘—–• ‘” ƒ‰‰”‡‰ƒ–‡ ‘ˆ –Š‡ ƒ‘—–• †‡„‹–‡† –‘ –Š‡ •–ƒ–‡‡– ‘ˆ ’”‘ˆ‹– ƒ† Ž‘•• ‘
†‹•–”‹„—–‹‘‘ˆ‘Ǧ…ƒ•Šƒ••‡–•–‘•Šƒ”‡Š‘Ž†‡”•‹ƒ†‡‡”‰‡”‹ƒ……‘”†ƒ…‡™‹–Š’’‡†‹š‘ˆ–Š‡
†‹ƒ……‘—–‹‰–ƒ†ƒ”†•ͳͲǢ
ȋ…Ȍ ‡…”‡ƒ•‡† „› ƒŽŽ ƒ‘—–• ‘” ƒ‰‰”‡‰ƒ–‡ ‘ˆ –Š‡ ƒ‘—–• …”‡†‹–‡† –‘ –Š‡ •–ƒ–‡‡– ‘ˆ ’”‘ϐ‹– ƒ† Ž‘•• ‘
†‹•–”‹„—–‹‘‘ˆ‘Ǧ…ƒ•Šƒ••‡–•–‘•Šƒ”‡Š‘Ž†‡”•‹ƒ†‡‡”‰‡”‹ƒ……‘”†ƒ…‡™‹–Š’’‡†‹š‘ˆ–Š‡†‹ƒ
……‘—–‹‰–ƒ†ƒ”†•ͳͲǢ
 •’‡”’’‡†‹š‘ˆ†ͳͲƒ›†‹•–”‹„—–‹‘‘ˆ‘Ǧ…ƒ•Šƒ••‡–•–‘•Šƒ”‡Š‘Ž†‡”•‹…ƒ•‡‘ˆ†‡‡”‰‡”
•ŠƒŽŽ„‡ƒ……‘—–‡†ƒ–ˆƒ‹”˜ƒŽ—‡ƒ†–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡…ƒ””›‹‰˜ƒŽ—‡ƒ†ˆƒ‹”˜ƒŽ—‡‘ˆ•—…Šƒ••‡–•‹•
ƒ†Œ—•–‡†‹’”‘ϐ‹–ƒ†Ž‘••Ǥ
 ‡•‡”˜‡•‘ˆ•—…Š…‘’ƒ›ƒ”‡†‡„‹–‡†™‹–Šˆƒ‹”˜ƒŽ—‡‘ˆƒ••‡–•–‘”‡…‘”††‹•–”‹„—–‹‘‘ˆDz†‡‡‡††‹˜‹†‡†dz
–‘ •Šƒ”‡Š‘Ž†‡”•Ǥ ‹…‡ •—…Š †‹ˆˆ‡”‡…‡ „‡–™‡‡ ˆƒ‹” ˜ƒŽ—‡ ƒ† …ƒ””›‹‰ ƒ‘—– ‹• ‹…Ž—†‡† ‹ ”‡–ƒ‹‡†
‡ƒ”‹‰•ǡ–Š‡”‡ˆ‘”‡ǡ•—…Š†‹ˆˆ‡”‡…‡ƒ”‹•‹‰‘†‡‡”‰‡”•ŠƒŽŽ„‡‡š…Ž—†‡†ˆ”‘„‘‘’”‘ϐ‹–•Ǥ
 —„Ǧ•‡…–‹‘ ȋʹȌ •–ƒ–‡• –Šƒ– ‹ †‡‡”‰‡”ǡ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ”‡•—Ž–‹‰ …‘’ƒ›ǡ –Š‡ ’”‘’‡”–› ƒ† –Š‡
Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡—†‡”–ƒ‹‰‘”—†‡”–ƒ‹‰•„‡‹‰”‡…‡‹˜‡†„›‹–ƒ”‡”‡…‘”†‡†ƒ–˜ƒŽ—‡•†‹ˆˆ‡”‡–ˆ”‘
˜ƒŽ—‡•ƒ’’‡ƒ”‹‰‹–Š‡„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡†‡‡”‰‡†…‘’ƒ›‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡†‡‡”‰‡”ǡƒ›
…Šƒ‰‡ ‹ •—…Š ˜ƒŽ—‡ •ŠƒŽŽ „‡ ‹‰‘”‡† ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ …‘’—–ƒ–‹‘ ‘ˆ „‘‘ ’”‘ϐ‹– ‘ˆ –Š‡ ”‡•—Ž–‹‰
…‘’ƒ›—†‡”–Š‹••‡…–‹‘Ǥ
 ‘ϐ‹”•––‹‡ƒ†‘’–‹‘ȏ‡…–‹‘ͳͳͷ ȋʹȌȐǣ
 …ƒ•‡‘ˆ†…‘’Ž‹ƒ–…‘’ƒ›ǡ–Š‡„‘‘’”‘ϐ‹–‘ˆ–Š‡›‡ƒ”‘ˆ…‘˜‡”‰‡…‡ƒ†‡ƒ…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰
Ͷ͸ͺ Lesson 8 Ȉ EP-TL

ˆ‘—” ’”‡˜‹‘—• ›‡ƒ”•ǡ •ŠƒŽŽ „‡ ˆ—”–Š‡” ‹…”‡ƒ•‡† ‘” †‡…”‡ƒ•‡†ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ „› ‘‡ ϐ‹ˆ–Š ‘ˆ –Š‡
–”ƒ•‹–‹‘ƒ‘—–Ǥ
 ‘–‡ǣ
  –Š‡ ϐ‹”•– ›‡ƒ” ‘ˆ ƒ†‘’–‹‘ ‘ˆ † ǡ –Š‡ …‘’ƒ‹‡• ™‘—Ž† ’”‡’ƒ”‡ †  ϐ‹ƒ…‹ƒŽ •–ƒ–‡‡– ˆ‘”
”‡’‘”–‹‰›‡ƒ”™‹–Šƒ…‘’ƒ”ƒ–‹˜‡ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–ˆ‘”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰›‡ƒ”Ǥ•’‡”†ͳͲͳǡ
ƒ…‘’ƒ›™‘—Ž†ƒ‡ƒŽŽ†ƒ†Œ—•–‡–•‘–Š‡‘’‡‹‰†ƒ–‡‘ˆ–Š‡…‘’ƒ”ƒ–‹˜‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ǤŠ‡
‡–‹–› ‹• ƒŽ•‘ ”‡“—‹”‡† –‘ ’”‡•‡– ƒ ‡“—‹–› ”‡…‘…‹Ž‹ƒ–‹‘ „‡–™‡‡ ’”‡˜‹‘—• †‹ƒ
 ƒ† † 
ƒ‘—–•ǡ„‘–Š‘–Š‡‘’‡‹‰†ƒ–‡‘ˆ’”‡…‡†‹‰›‡ƒ”ƒ•™‡ŽŽƒ•‘–Š‡…Ž‘•‹‰†ƒ–‡‘ˆ–Š‡’”‡…‡†‹‰›‡ƒ”Ǥ
 ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–ƒ–‹‘‘ˆ„‘‘’”‘ϐ‹–•‘ˆ–Š‡›‡ƒ”‘ˆƒ†‘’–‹‘ƒ†ˆ‘”ƒ†Œ—•–‡–•ǡ–Š‡ƒ‘—–•
ƒ†Œ—•–‡†ƒ•‘–Š‡‘’‡‹‰†ƒ–‡‘ˆ–Š‡ϐ‹”•–›‡ƒ”‘ˆƒ†‘’–‹‘•ŠƒŽŽ„‡…‘•‹†‡”‡†Ǥ
 ‘”‡šƒ’Ž‡ǡ…‘’ƒ‹‡•™Š‹…Šƒ†‘’–†™‹–Š‡ˆˆ‡…–ˆ”‘ͳ’”‹ŽʹͲͳ͸ƒ”‡”‡“—‹”‡†–‘’”‡’ƒ”‡–Š‡‹”
ϐ‹ƒ…‹ƒŽ •–ƒ–‡‡–• ˆ‘” –Š‡ ›‡ƒ” ʹͲͳ͸Ǧͳ͹ƒ• ’‡” –Š‡ ”‡“—‹”‡‡–• ‘ˆ † Ǥ —…Š …‘’ƒ‹‡• ƒ”‡ ƒŽ•‘
”‡“—‹”‡†–‘’”‡’ƒ”‡ƒ‘’‡‹‰„ƒŽƒ…‡•Š‡‡–ƒ•‘ˆͳ•–’”‹ŽʹͲͳͷƒ†”‡•–ƒ–‡–Š‡ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–•ˆ‘”
–Š‡…‘’ƒ”ƒ–‹˜‡’‡”‹‘†ʹͲͳͷǦͳ͸Ǥ
 •—…Šƒ…ƒ•‡ǡ–Š‡ϐ‹”•––‹‡ƒ†‘’–‹‘ƒ†Œ—•–‡–•ƒ•‘ˆ͵ͳƒ”…ŠʹͲͳ͸•ŠƒŽŽ„‡…‘•‹†‡”‡†ˆ‘”…‘’—–ƒ–‹‘
‘ˆŽ‹ƒ„‹Ž‹–›ˆ‘”’”‡˜‹‘—•›‡ƒ”ʹͲͳ͸Ǧͳ͹ȋ••‡••‡–›‡ƒ”ʹͲͳ͹ǦͳͺȌƒ†–Š‡”‡ƒˆ–‡”Ǥ
 —”–Š‡”ǡ‹–Š‹•…ƒ•‡ǡ–Š‡ϐ‹˜‡›‡ƒ”•’‡”‹‘†•ŠƒŽŽ„‡’”‡˜‹‘—•›‡ƒ”•ʹͲͳ͸Ǧͳ͹ǡʹͲͳ͹ǦͳͺǡʹͲͳͺǦͳͻǡʹͲͳͻǦʹͲ
ƒ†ʹͲʹͲǦʹͳǤ
 ‘™‡˜‡”ǡ–Š‡„‘‘’”‘ϐ‹–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒ••‡–‘”‹˜‡•–‡–”‡ˆ‡””‡†–‘‹•—„…Žƒ—•‡•
 –‘ ȋȌ ‘ˆ …Žƒ—•‡ ȋ‹‹‹Ȍ ‘ˆ –Š‡ š’Žƒƒ–‹‘ ‹• ”‡–‹”‡†ǡ †‹•’‘•‡†ǡ ”‡ƒŽ‹•‡† ‘” ‘–Š‡”™‹•‡ –”ƒ•ˆ‡””‡† •ŠƒŽŽ „‡
‹…”‡ƒ•‡†‘”†‡…”‡ƒ•‡†ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ„›–Š‡ƒ‘—–‘ˆ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•”‡ˆ‡””‡†–‘‹
–Š‡•ƒ‹†•—„Ǧ…Žƒ—•‡”‡Žƒ–ƒ„Ž‡–‘•—…Šƒ••‡–‘”‹˜‡•–‡–ǣȏ ‹”•–’”‘˜‹•‘–‘•‡…–‹‘ͳͳͷ ȋʹȌȐ
 —”–Š‡”ǡ–Š‡„‘‘’”‘ϐ‹–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ˆ‘”‡‹‰‘’‡”ƒ–‹‘”‡ˆ‡””‡†–‘‹•—„…Žƒ—•‡ȋ Ȍ‘ˆ
…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ–Š‡š’Žƒƒ–‹‘‹•†‹•’‘•‡†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†ǡ•ŠƒŽŽ„‡‹…”‡ƒ•‡†‘”†‡…”‡ƒ•‡†ǡƒ•–Š‡
…ƒ•‡ƒ›„‡ǡ„›–Š‡ƒ‘—–‘ˆ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•”‡ˆ‡””‡†–‘‹–Š‡•ƒ‹†•—„Ǧ…Žƒ—•‡”‡Žƒ–ƒ„Ž‡–‘
•—…Šˆ‘”‡‹‰‘’‡”ƒ–‹‘•Ǥȏ‡…‘†’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋʹȌȐ
 ‡ƒ‹‰‘ˆ…‡”–ƒ‹–‡”•ȏš’Žƒƒ–‹‘–‘‡…–‹‘ͳͳͷ ȋʹȌȐ
ͳǤ ‡ƒ”‘ˆ‘˜‡”‰‡…‡ǣ–Š‡’”‡˜‹‘—•›‡ƒ”™‹–Š‹™Š‹…Š–Š‡…‘˜‡”‰‡…‡†ƒ–‡ˆƒŽŽ•Ǥ
ʹǤ ‘˜‡”‰‡…‡ ƒ–‡ǣ –Š‡ ϐ‹”•– †ƒ› ‘ˆ –Š‡ ϐ‹”•– †‹ƒ ……‘—–‹‰ –ƒ†ƒ”†• ”‡’‘”–‹‰ ’‡”‹‘† ƒ•
†‡ϐ‹‡†‹–Š‡†ͳͲͳǤ
͵Ǥ ”ƒ•‹–‹‘‘—–ǣ–Š‡ƒ‘—–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•ƒ†Œ—•–‡†‹‘–Š‡”‡“—‹–›ȋ‡š…Ž—†‹‰
…ƒ’‹–ƒŽ ”‡•‡”˜‡ ƒ† •‡…—”‹–‹‡• ’”‡‹— ”‡•‡”˜‡Ȍ ‘ …‘˜‡”‰‡…‡ †ƒ–‡ „—– ‘– ‹…Ž—†‹‰ –Š‡
ˆ‘ŽŽ‘™‹‰ǣ
ȋȌ ‘—– ‘” ƒ‰‰”‡‰ƒ–‡ ‘ˆ –Š‡ ƒ‘—–• ƒ†Œ—•–‡† ‹ –Š‡ ‘–Š‡” …‘’”‡Š‡•‹˜‡ ‹…‘‡ ‘ –Š‡
…‘˜‡”‰‡…‡†ƒ–‡™Š‹…Š•ŠƒŽŽ„‡•—„•‡“—‡–Ž›”‡Ǧ…Žƒ••‹ϐ‹‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••Ǣ
ȋȌ ‡˜ƒŽ—ƒ–‹‘•—”’Ž—•ˆ‘”ƒ••‡–•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡†‹ƒ……‘—–‹‰–ƒ†ƒ”†•ͳ͸ƒ†
†‹ƒ……‘—–‹‰–ƒ†ƒ”†•͵ͺƒ†Œ—•–‡†‘–Š‡…‘˜‡”‰‡…‡†ƒ–‡Ǣ
ȋȌ
ƒ‹• ‘” Ž‘••‡• ˆ”‘ ‹˜‡•–‡–• ‹ ‡“—‹–› ‹•–”—‡–• †‡•‹‰ƒ–‡† ƒ– ˆƒ‹” ˜ƒŽ—‡ –Š”‘—‰Š
‘–Š‡” …‘’”‡Š‡•‹˜‡ ‹…‘‡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ †‹ƒ ……‘—–‹‰ –ƒ†ƒ”†• ͳͲͻ
ƒ†Œ—•–‡†‘–Š‡…‘˜‡”‰‡…‡†ƒ–‡Ǣ
ȋȌ †Œ—•–‡–• ”‡Žƒ–‹‰ –‘ ‹–‡• ‘ˆ ’”‘’‡”–›ǡ ’Žƒ– ƒ† ‡“—‹’‡– ƒ† ‹–ƒ‰‹„Ž‡ ƒ••‡–•
”‡…‘”†‡†ƒ–ˆƒ‹”˜ƒŽ—‡ƒ•†‡‡‡†…‘•–‹ƒ……‘”†ƒ…‡™‹–Š’ƒ”ƒ‰”ƒ’Š•ͷƒ†͹‘ˆ–Š‡†‹ƒ
……‘—–‹‰–ƒ†ƒ”†•ͳͲͳ‘–Š‡…‘˜‡”‰‡…‡†ƒ–‡Ǣ
ȋȌ †Œ—•–‡–•”‡Žƒ–‹‰–‘‹˜‡•–‡–•‹•—„•‹†‹ƒ”‹‡•ǡŒ‘‹–˜‡–—”‡•ƒ†ƒ••‘…‹ƒ–‡•”‡…‘”†‡†
ƒ– ˆƒ‹” ˜ƒŽ—‡ ƒ• †‡‡‡† …‘•– ‹ ƒ……‘”†ƒ…‡ ™‹–Š ’ƒ”ƒ‰”ƒ’Š ͳͷ ‘ˆ –Š‡ †‹ƒ ……‘—–‹‰
–ƒ†ƒ”†•ͳͲͳ‘–Š‡…‘˜‡”‰‡…‡†ƒ–‡Ǣƒ†
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͸ͻ

ȋ Ȍ †Œ—•–‡–• ”‡Žƒ–‹‰ –‘ …——Žƒ–‹˜‡ –”ƒ•Žƒ–‹‘ †‹ˆˆ‡”‡…‡• ‘ˆ ƒ ˆ‘”‡‹‰ ‘’‡”ƒ–‹‘ ‹
ƒ……‘”†ƒ…‡™‹–Š’ƒ”ƒ‰”ƒ’Šͳ͵‘ˆ–Š‡†‹ƒ……‘—–‹‰–ƒ†ƒ”†•ͳͲͳ‘–Š‡…‘˜‡”‰‡…‡
†ƒ–‡Ǥȏ…Žƒ—•‡ȋ‹‹‹ȌȐ
”ƒ•‹–‹‘ƒŽ†Œ—•–‡–•ǣƒŽ›•‹•
ȋ‹Ȍ Š‡ƒ†Œ—•–‡–•ƒ”‹•‹‰‘ƒ……‘—–‘ˆ–”ƒ•‹–‹‘–‘†ˆ”‘‡š‹•–‹‰†‹ƒ
ƒ”‡”‡“—‹”‡†–‘„‡
”‡…‘”†‡††‹”‡…–Ž›‹–Š‡”“—‹–›ƒ––Š‡†ƒ–‡‘ˆ–”ƒ•‹–‹‘–‘†ǤŠ‡•‡ƒ†Œ—•–‡–•Šƒ•–‘„‡ƒ†‡‹
–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ
ȋƒȌ Š‡„‘‘’”‘ϐ‹–‘ˆ–Š‡›‡ƒ”‘ˆ…‘˜‡”‰‡…‡ƒ†–Š‡ˆ‘ŽŽ‘™‹‰ˆ‘—”’”‡˜‹‘—•›‡ƒ”••ŠƒŽŽ„‡‹…”‡ƒ•‡†
‘”†‡…”‡ƒ•‡†™‹–Š–Š‡–”ƒ•‹–‹‘ƒŽƒ†Œ—•–‡–•”‡…‘”†‡††‹”‡…–Ž›‹–Š‡”“—‹–›‡š…Ž—†‹‰…ƒ’‹–ƒŽ
”‡•‡”˜‡ƒ†•‡…—”‹–‹‡•’”‡‹—”‡•‡”˜‡ƒ†‡š…Ž—†‹‰–Š‡ƒ‘—–•”‡ˆ‡””‡†‹ȋȌ–‘ȋ Ȍȋ‹–Š‡
†‡ϐ‹‹–‹‘‘ˆ”ƒ•‹–‹‘‘—–Ȍǡ‘–Š‡…‘˜‡”‰‡…‡†ƒ–‡Ǥ
ȋ„Ȍ Š‘•‡ƒ†Œ—•–‡–•”‡…‘”†‡†‹‘–Š‡”…‘’”‡Š‡•‹˜‡‹…‘‡”‡ˆ‡””‡†‹ȋȌƒ„‘˜‡ȋ‹–Š‡†‡ϐ‹‹–‹‘
‘ˆ”ƒ•‹–‹‘‘—–Ȍƒ†™Š‹…Š™‘—Ž†•—„•‡“—‡–Ž›„‡”‡…Žƒ••‹ϐ‹‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ǡ•ŠƒŽŽ„‡
‹…Ž—†‡†‹„‘‘’”‘ϐ‹–•‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡•‡ƒ”‡”‡…Žƒ••‹ϐ‹‡†–‘–Š‡’”‘ϐ‹–ƒ†Ž‘••ǡ–Š‡”‡ˆ‘”‡
–Š‡•‡ƒ‘—–•ƒ”‡‡š…Ž—†‡†ˆ”‘–Š‡–”ƒ•‹–‹‘ƒ‘—–Ǥ
ȋ…Ȍ Š‘•‡ ƒ†Œ—•–‡–• ”‡…‘”†‡† ‹ ‘–Š‡” …‘’”‡Š‡•‹˜‡ ‹…‘‡ ”‡ˆ‡””‡† ‹ ȋȌ ƒ† ȋȌ ȋ‹ –Š‡
†‡ϐ‹‹–‹‘‘ˆ”ƒ•‹–‹‘‘—–Ȍƒ„‘˜‡ƒ†™Š‹…Š™‘—Ž†‡˜‡”„‡•—„•‡“—‡–Ž›”‡…Žƒ••‹ϐ‹‡†–‘–Š‡
’”‘ϐ‹–ƒ†Ž‘•••ŠƒŽŽ„‡‹…Ž—†‡†‹„‘‘’”‘ϐ‹–•ƒ••’‡…‹ϐ‹‡†Š‡”‡—†‡”ǣ
‹Ǥ Šƒ‰‡•‹”‡˜ƒŽ—ƒ–‹‘•—”’Ž—•‘ˆ”‘’‡”–›ǡŽƒ–‘”“—‹’‡–ȋȌƒ†–ƒ‰‹„Ž‡ƒ••‡–•ȋ†
ͷͼƒ†͹;ȌȂ–•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡„‘‘’”‘ϐ‹–‹–Š‡›‡ƒ”‹™Š‹…Š–Š‡••‡–Ȁ˜‡•–‡–
‹•”‡–‹”‡†ǡ†‹•’‘•‡†ǡ”‡ƒŽ‹œ‡†‘”‘–Š‡”™‹•‡–”ƒ•ˆ‡””‡†Ǥ
‹‹Ǥ Gains and losses from Investments in equity instruments designated at fair value through OCI
ȋ†ͷͶͿȌȂ–•ŠƒŽŽ„‡ƒ†Œ—•–‡†‹„‘‘’”‘ϐ‹–•‹–Š‡›‡ƒ”‹™Š‹…Š‹˜‡•–‡–‹•”‡–‹”‡†Ȁ
†‹•’‘•‡†Ȁ”‡ƒŽ‹œ‡†Ǥ
‹‹‹Ǥ ‡Ǧ‡ƒ•—”‡‡–•‘ˆ†‡ϔ‹‡†„‡‡ϔ‹–’Žƒ•ȋ†ͷͿȌȂ–•ŠƒŽŽ„‡ƒ†Œ—•–‡†‹„‘‘’”‘ϐ‹–•
‡“—ƒŽŽ›‘˜‡”ƒ’‡”‹‘†‘ˆͷ›‡ƒ”••–ƒ”–‹‰ˆ”‘–Š‡›‡ƒ”‘ˆϐ‹”•––‹‡ƒ†‘’–‹‘‘ˆ†Ǥ
‹˜Ǥ Any other Item Ȃ–•ŠƒŽŽ„‡ƒ†Œ—•–‡†‹„‘‘’”‘ϐ‹–•‡“—ƒŽŽ›‘˜‡”ƒ’‡”‹‘†‘ˆͷ›‡ƒ”••–ƒ”–‹‰
ˆ”‘–Š‡›‡ƒ”‘ˆϐ‹”•––‹‡ƒ†‘’–‹‘‘ˆ†Ǥ
ȋ†Ȍ Š‡‘–Š‡”ƒ†Œ—•–‡–•”‡ˆ‡””‡†‹ȋȌǡȋȌƒ†ȋ Ȍȋ‹–Š‡†‡ϐ‹‹–‹‘‘ˆ”ƒ•‹–‹‘‘—–Ȍƒ„‘˜‡
•ŠƒŽŽ„‡ƒ†‡‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ
‹Ǥ ”‘’‡”–›ǡ Žƒ– ƒ† “—‹’‡– ȋȌ ƒ† ‹–ƒ‰‹„Ž‡ ƒ••‡–• ƒ– ˆƒ‹” ˜ƒŽ—‡ ƒ• †‡‡‡†
…‘•–ȏ”‡ˆ‡””‡†‹ȋȌȋ‹–Š‡†‡ϐ‹‹–‹‘‘ˆ”ƒ•‹–‹‘‘—–Ȍƒ„‘˜‡Ȑ
 ‡–‹–›ƒ›—•‡ˆƒ‹”˜ƒŽ—‡‹‹–•‘’‡‹‰†ƒŽƒ…‡Š‡‡–ƒ•†‡‡‡†…‘•–ˆ‘”ƒ‹–‡
‘ˆ‘”ƒ‹–ƒ‰‹„Ž‡ƒ••‡–ƒ•‡–‹‘‡†‹’ƒ”ƒ‰”ƒ’Š•ͷƒ†͹‘ˆ†ͳͲͳǤ•—…Š
…ƒ•‡•–Š‡–”‡ƒ–‡–•ŠƒŽŽ„‡ƒ•—†‡”Ȃ
Ȉ Š‡‡š‹•–‹‰’”‘˜‹•‹‘•ˆ‘”…‘’—–ƒ–‹‘‘ˆ„‘‘’”‘ϐ‹–•—†‡”•‡…–‹‘ͳͳͷ ‘ˆ–Š‡
…– ’”‘˜‹†‡ –Šƒ– ‹ …ƒ•‡ ‘ˆ ”‡˜ƒŽ—ƒ–‹‘ ‘ˆ ƒ••‡–•ǡ ƒ› ‹’ƒ…– ‘ ƒ……‘—– ‘ˆ •—…Š
”‡˜ƒŽ—ƒ–‹‘•ŠƒŽŽ„‡‹‰‘”‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–ƒ–‹‘‘ˆ„‘‘’”‘ϐ‹–•Ǥ —”–Š‡”ǡ
–Š‡ƒ†Œ—•–‡–•‹”‡–ƒ‹‡†‡ƒ”‹‰•‘ϐ‹”•––‹‡ƒ†‘’–‹‘™‹–Š”‡•’‡…––‘‹–‡•‘ˆ
ƒ†–ƒ‰‹„Ž‡ƒ••‡–••ŠƒŽŽ„‡‹‰‘”‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ…‘’—–ƒ–‹‘‘ˆ„‘‘
’”‘ϐ‹–•Ǥ
Ȉ ‡’”‡…‹ƒ–‹‘•ŠƒŽŽ„‡…‘’—–‡†‹‰‘”‹‰–Š‡ƒ‘—–‘ˆƒˆ‘”‡•ƒ‹†”‡–ƒ‹‡†‡ƒ”‹‰•
ƒ†Œ—•–‡–Ǥ
 ‹‹Žƒ”Ž›ǡ ‰ƒ‹ȀŽ‘•• ‘ ”‡ƒŽ‹œƒ–‹‘Ȁ †‹•’‘•ƒŽȀ ”‡–‹”‡‡– ‘ˆ •—…Š ƒ••‡–• •ŠƒŽŽ „‡ …‘’—–‡†
‹‰‘”‹‰–Š‡ƒˆ‘”‡•ƒ‹†”‡–ƒ‹‡†‡ƒ”‹‰•ƒ†Œ—•–‡–Ǥ
Ͷ͹Ͳ Lesson 8 Ȉ EP-TL

‹‹Ǥ ˜‡•–‡–•‹•—„•‹†‹ƒ”‹‡•ǡŒ‘‹–˜‡–—”‡•ƒ†ƒ••‘…‹ƒ–‡•ƒ–ˆƒ‹”˜ƒŽ—‡ƒ•†‡‡‡†…‘•–
ȏ”‡ˆ‡””‡†‹ȋȌȋ‹–Š‡†‡ϐ‹‹–‹‘‘ˆ”ƒ•‹–‹‘‘—–Ȍƒ„‘˜‡Ȑ
 ‡–‹–›ƒ›—•‡ˆƒ‹”˜ƒŽ—‡‹‹–•‘’‡‹‰†ƒŽƒ…‡Š‡‡–ƒ•†‡‡‡†…‘•–ˆ‘”‹˜‡•–‡–
‹ƒ•—„•‹†‹ƒ”›ǡŒ‘‹–˜‡–—”‡‘”ƒ••‘…‹ƒ–‡‹‹–••‡’ƒ”ƒ–‡ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–•ƒ•‡–‹‘‡†‹
’ƒ”ƒ‰”ƒ’Šͳͷ‘ˆ†ͳͲͳǤ•—…Š…ƒ•‡•”‡–ƒ‹‡†‡ƒ”‹‰•ƒ†Œ—•–‡–•ŠƒŽŽ„‡‹…Ž—†‡†
‹–Š‡„‘‘’”‘ϐ‹–ƒ––Š‡–‹‡‘ˆ”‡ƒŽ‹•ƒ–‹‘‘ˆ•—…Š‹˜‡•–‡–Ǥ
‹‹‹Ǥ ——Žƒ–‹˜‡ –”ƒ•Žƒ–‹‘ †‹ˆˆ‡”‡…‡• ȏ”‡ˆ‡””‡† ‹ ȋ Ȍ ȋ‹ –Š‡ †‡ϐ‹‹–‹‘ ‘ˆ ”ƒ•‹–‹‘
‘—–Ȍƒ„‘˜‡Ȑ
Ȉ ‡–‹–›ƒ›‡Ž‡…–ƒ…Š‘‹…‡™Š‡”‡„›–Š‡…——Žƒ–‹˜‡–”ƒ•Žƒ–‹‘†‹ˆˆ‡”‡…‡•ˆ‘”ƒŽŽ
ˆ‘”‡‹‰‘’‡”ƒ–‹‘•ƒ”‡†‡‡‡†–‘„‡œ‡”‘ƒ––Š‡†ƒ–‡‘ˆ–”ƒ•‹–‹‘–‘†Ǥ —”–Š‡”ǡ
–Š‡ ‰ƒ‹ ‘” Ž‘•• ‘ ƒ •—„•‡“—‡– †‹•’‘•ƒŽ ‘ˆ ƒ› ˆ‘”‡‹‰ ‘’‡”ƒ–‹‘ •ŠƒŽŽ ‡š…Ž—†‡
–”ƒ•Žƒ–‹‘ †‹ˆˆ‡”‡…‡• –Šƒ– ƒ”‘•‡ „‡ˆ‘”‡ –Š‡ †ƒ–‡ ‘ˆ –”ƒ•‹–‹‘ –‘ †  ƒ† •ŠƒŽŽ
‹…Ž—†‡‘Ž›–Š‡–”ƒ•Žƒ–‹‘†‹ˆˆ‡”‡…‡•ƒˆ–‡”–Š‡†ƒ–‡‘ˆ–”ƒ•‹–‹‘Ǥ
Ȉ •—…Š…ƒ•‡•ǡ–‘‡•—”‡–Šƒ–•—…Š——Žƒ–‹˜‡–”ƒ•Žƒ–‹‘†‹ˆˆ‡”‡…‡•‘–Š‡†ƒ–‡‘ˆ
–”ƒ•‹–‹‘™Š‹…ŠŠƒ˜‡„‡‡–”ƒ•ˆ‡””‡†–‘”‡–ƒ‹‡†‡ƒ”‹‰•ǡƒ”‡–ƒ‡‹–‘ƒ……‘—–ǡ
–Š‡•‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡„‘‘’”‘ϐ‹–•ƒ––Š‡–‹‡‘ˆ†‹•’‘•ƒŽ‘ˆˆ‘”‡‹‰‘’‡”ƒ–‹‘•
ƒ•‡–‹‘‡†‹’ƒ”ƒ‰”ƒ’ŠͶͺ‘ˆ†ʹͳǤ
ȋ‹‹Ȍ ŽŽ‘–Š‡”ƒ†Œ—•–‡–•–‘”‡–ƒ‹‡†‡ƒ”‹‰•ȋ”‡…‘”†‡†ƒ•‘–Š‡”‡“—‹–›Ȍƒ––Š‡–‹‡‘ˆ–”ƒ•‹–‹‘ȋ‹…Ž—†‹‰
ˆ‘” ‡šƒ’Ž‡ǡ ‡…‘‹••‹‘‹‰ ‹ƒ„‹Ž‹–›ǡ ••‡– ”‡–‹”‡‡– ‘„Ž‹‰ƒ–‹‘•ǡ ‘”‡‹‰ ‡š…Šƒ‰‡ …ƒ’‹–ƒŽ‹•ƒ–‹‘Ȁ
†‡…ƒ’‹–ƒŽ‹œƒ–‹‘ǡ‘””‘™‹‰…‘•–•ƒ†Œ—•–‡–•‡–…ǤȌ•ŠƒŽŽ„‡‹…Ž—†‡†‹„‘‘’”‘ϐ‹–•ǡ‡“—ƒŽŽ›‘˜‡”ƒ’‡”‹‘†
‘ˆϐ‹˜‡›‡ƒ”••–ƒ”–‹‰ˆ”‘–Š‡›‡ƒ”‘ˆϐ‹”•––‹‡ƒ†‘’–‹‘‘ˆ†Ǥ
ȋ‹‹‹Ȍ ‡…–‹‘ͳͳͷ ‘ˆ–Š‡…–ƒŽ”‡ƒ†›’”‘˜‹†‡•ˆ‘”ƒ†Œ—•–‡–•‘ƒ……‘—–‘ˆ†‡ˆ‡””‡†–ƒšƒ†‹–•’”‘˜‹•‹‘Ǥ
›†‡ˆ‡””‡†–ƒšƒ†Œ—•–‡–•”‡…‘”†‡†‹‡•‡”˜‡•ƒ†—”’Ž—•‘ƒ……‘—–‘ˆ–”ƒ•‹–‹‘–‘†•ŠƒŽŽ
ƒŽ•‘„‡‹‰‘”‡†Ǥ
Š‡ˆ‘ŽŽ‘™‹‰’‘‹–••Š‘—Ž†ƒŽ•‘„‡‘–‡†‹–Š‹•…‘–‡š–ǣ
ͳǤ ‘••‡•ƒ†—ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†ȋ‡…–‹‘ͳͳͷ ȋ͵ȌȌ
 ”‘˜‹•‹‘•‘ˆ—†‡”‡…–‹‘ͳͳͷ ȋͳȌ•ŠƒŽŽ‘–ƒˆˆ‡…––Š‡†‡–‡”‹ƒ–‹‘‘ˆ–Š‡ƒ‘—–•—ƒ„•‘”„‡†
†‡’”‡…‹ƒ–‹‘—†‡”‡…–‹‘͵ʹȋʹȌǡ„—•‹‡••Ž‘••—Ȁ•͹ʹȋͳȌǡ•’‡…—Žƒ–‹‘Ž‘••—Ȁ•͹͵ǡ…ƒ’‹–ƒŽŽ‘••—Ȁ•͹Ͷƒ†
Ž‘••—Ȁ• ͹Ͷ‹ ”‡Žƒ–‹‘ –‘ –Š‡ ”‡Ž‡˜ƒ– ’”‡˜‹‘—•›‡ƒ” –‘ „‡ …ƒ””‹‡†ˆ‘”™ƒ”† –‘ –Š‡ •—„•‡“—‡– ›‡ƒ” ‘”
›‡ƒ”•Ǥ‘–Š‡”™‘”†•ǡ–Š‡•‡ƒ”‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†‹—•—ƒŽƒ‡”Ǥ
ʹǤ ‡’‘”–ˆ”‘ƒŠƒ”–‡”‡†……‘—–ƒ––‘„‡•—„‹––‡†ȏ‡…–‹‘ͳͳͷ ȋͶȌȐ
 ˜‡”›…‘’ƒ›–‘™Š‹…Š–Š‹••‡…–‹‘ƒ’’Ž‹‡•ǡ•ŠƒŽŽˆ—”‹•Šƒ”‡’‘”–‹–Š‡’”‡•…”‹„‡†ˆ‘”ˆ”‘ƒŠƒ”–‡”‡†
……‘—–ƒ–ƒ•†‡ϐ‹‡†‹–Š‡š’Žƒƒ–‹‘„‡Ž‘™‡…–‹‘ʹͺͺȋʹȌǡ…‡”–‹ˆ›‹‰–Šƒ––Š‡„‘‘’”‘ϐ‹–Šƒ•„‡‡
…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘‘‘”„‡ˆ‘”‡–Š‡•’‡…‹ϐ‹‡††ƒ–‡”‡ˆ‡””‡†–‘‹
•‡…–‹‘ͶͶȋ‹Ǥ‡Ǥǡ‘‡‘–Š’”‹‘”–‘†—‡†ƒ–‡ˆ‘”ϐ‹Ž‹‰”‡–—”‘ˆ‹…‘‡‘”‹”‡•’‘•‡–‘ƒ‘–‹…‡‡…–‹‘
ͳͶʹȋͳȌȋ‹ȌǤ
͵Ǥ ŽŽ‘–Š‡”’”‘˜‹•‹‘•–‘„‡ƒ’’Ž‹…ƒ„Ž‡ƒ•—•—ƒŽȏ‡…–‹‘ͳͳͷ ȋͷȌȐ
 ƒ˜‡ƒ•‘–Š‡”™‹•‡’”‘˜‹†‡†‹–Š‹••‡…–‹‘ǡƒŽŽ‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘•—…Š…‘’ƒ‹‡•ǡ
‹Ǥ‡ǤǡƒŽŽ–Š‡’”‘˜‹•‹‘••—…Šƒ•†˜ƒ…‡–ƒšǡ–‡”‡•–—†‡”‡…–‹‘ʹ͵Ͷǡʹ͵Ͷƒ†ʹ͵Ͷǡ’‡ƒŽ–›‡–…•ŠƒŽŽ
ƒŽ•‘ƒ’’Ž›–‘•—…Š…‘’ƒ‹‡•Ǥ
ͶǤ ‘Ǧƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆȏ‡…–‹‘ͳͳͷ ȋͷȌȐǣŠ‡’”‘˜‹•‹‘‘ˆ—Ȁ•ͳͳͷ •ŠƒŽŽ‘–ƒ’’Ž›–‘ǣ
Ȉ ‘ƒ›‹…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘ƒ…‘’ƒ›ˆ”‘Ž‹ˆ‡‹•—”ƒ…‡„—•‹‡••”‡ˆ‡””‡†–‘‹•‡…–‹‘
ͳͳͷǤ
Ȉ …‘’ƒ›™Š‘Šƒ•‡š‡”…‹•‡†–Š‡‘’–‹‘—Ȁ•ͳͳͷ‘”•‡…–‹‘ͳͳͷǤ
ͷǤ ’’Ž‹…ƒ„‹Ž‹–›‘ˆ”‘˜‹•‹‘•–‘‡–‡”’”‹•‡•ƒ††‡˜‡Ž‘’‡”•ǣŠ‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ƒ”‡
ƒ’’Ž‹…ƒ„Ž‡–‘‡–‡”’”‹•‡•ƒ†‡˜‡Ž‘’‡”•ˆ”‘ʹͲͳʹǦͳ͵Ǥ
Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͹ͳ

͸Ǥ ƒ–‡‘ˆ‹…ƒ•‡‘ˆƒ—‹–Ž‘…ƒ–‡†‹–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡‡–”‡

 ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹‡…–‹‘ͳͳͷ ȋͳȌǡ™Š‡”‡–Š‡ƒ••‡••‡‡”‡ˆ‡””‡†–‘–Š‡”‡‹ǡ‹•ƒ—‹–
Ž‘…ƒ–‡†‹ƒ–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡ƒ††‡”‹˜‡•‹–•‹…‘‡•‘Ž‡Ž›‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰
‡š…Šƒ‰‡ǡ–Š‡”ƒ–‡‘ˆ•ŠƒŽŽ„‡ͻΨ‹•–‡ƒ†‘ˆͳͷΨ‘ˆ‘‘”‘ϐ‹–•Ǥ
͹Ǥ ‡…–‹‘ͳͳͷ ȋʹȌ
 –Š‡…ƒ•‡‘ˆƒƒ••‡••‡‡„‡‹‰ƒ…‘’ƒ›ǡ™Š‡”‡–Š‡”‡‹•ƒ‹…”‡ƒ•‡‹„‘‘’”‘ϐ‹–‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
†—‡–‘‹…‘‡‘ˆ’ƒ•–›‡ƒ”‘”›‡ƒ”•‹…Ž—†‡†‹–Š‡„‘‘’”‘ϐ‹–‘ƒ……‘—–‘ˆƒƒ†˜ƒ…‡’”‹…‹‰ƒ‰”‡‡‡–
‡–‡”‡†‹–‘„›–Š‡ƒ••‡••‡‡—†‡”•‡…–‹‘ͻʹ‘”‘ƒ……‘—–‘ˆ•‡…‘†ƒ”›ƒ†Œ—•–‡–”‡“—‹”‡†–‘„‡
ƒ†‡—†‡”•‡…–‹‘ͻʹǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽǡ‘ƒƒ’’Ž‹…ƒ–‹‘ƒ†‡–‘Š‹‹–Š‹•„‡ŠƒŽˆ„›–Š‡
ƒ•••‡••‡‡ǡ ”‡…‘’—–‡ –Š‡ „‘‘ ’”‘ϐ‹– ‘ˆ –Š‡ ’ƒ•– ›‡ƒ” ‘” ›‡ƒ”• ƒ† –ƒš ’ƒ›ƒ„Ž‡ǡ ‹ˆ ƒ›ǡ „› –Š‡ ƒ••‡••‡‡
†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”—†‡”•—„Ǧ•‡…–‹‘ȋͳȌǡ‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†ƒ†–Š‡’”‘˜‹•‹‘•
‘ˆ•‡…–‹‘ͳͷͶ•ŠƒŽŽǡ•‘ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›ƒ†–Š‡’‡”‹‘†‘ˆˆ‘—”›‡ƒ”••’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ–Šƒ–
•‡…–‹‘•ŠƒŽŽ„‡”‡…‘‡†ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡•ƒ‹†ƒ’’Ž‹…ƒ–‹‘‹•”‡…‡‹˜‡†„›–Š‡
••‡••‹‰ˆϐ‹…‡”Ǥ
ͺǤ ’’Ž‹…ƒ„‹Ž‹–›‘ˆ’”‘˜‹•‹‘•‘ˆƒ’’Ž‹…ƒ„Ž‡–‘ ‘”‡‹‰‘’ƒ‹‡•
 ‹…‡ Ǯ…‘’ƒ›ǯ †‡ϐ‹‡† —Ȁ• ʹȋͳ͹Ȍ ‹…Ž—†‡• ƒ› „‘†› …‘”’‘”ƒ–‡ ‹…‘”’‘”ƒ–‡† —†‡” –Š‡ Žƒ™• ‘—–•‹†‡
†‹ƒǡ•‘ˆ‘”‡‹‰…‘’ƒ‹‡•ƒ”‡ƒŽ•‘Ž‹ƒ„Ž‡–‘‹”‡•’‡…–‘ˆ–Š‡‹”‹…‘‡‹†‹ƒǤ‘™‡˜‡”ǡˆ‘”‡‹‰
…‘’ƒ‹‡••ŠƒŽŽ‘–Ž‹ƒ„Ž‡—Ȁ•ͳͳͷ ™‹–Š‘—–’Š›•‹…ƒŽ’”‡•‡…‡Ǥ
 Š‡—–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰ȋDzdzȌŠƒ•†‡Ž‹˜‡”‡†ƒ”—Ž‹‰‹–Š‡…ƒ•‡‘ˆ‹‡†‹ƒ–†Ǥ™Š‡”‡‹–
Š‘Ž†• –Šƒ– –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ ͳͳͷ  ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–ǡ ͳͻ͸ͳ ȋDz–Š‡ …–dzȌ Ž‡˜›‹‰ ‹‹—
Ž–‡”ƒ–‡ƒšȋDzdzȌ‘–Š‡„‘‘’”‘ϐ‹–‘ˆƒ‘’ƒ›™‘—Ž†‘–ƒ’’Ž›–‘ƒ ‘”‡‹‰‘’ƒ›‘–Šƒ˜‹‰
ƒ›’Š›•‹…ƒŽ’”‡•‡…‡‹†‹ƒǤ–Š‹•…ƒ•‡ǡ–Š‡†‹•–‹‰—‹•Š‡†‹–•‡ƒ”Ž‹‡””—Ž‹‰‘ˆͳͻͻͺ™Š‡”‡‹‹–Šƒ†
Š‡Ž†–Šƒ–ƒˆ‘”‡‹‰…‘’ƒ›™‘—Ž†„‡•—„Œ‡…––‘’”‘˜‹•‹‘•ǤŠ‡…”‹–‹…ƒŽˆƒ…–‘”ˆ‘”†‹•–‹‰—‹•Š‹‰™ƒ•
‘ –Š‡ „ƒ•‹• –Šƒ– ‹ –Š‡ ‡ƒ”Ž‹‡” ”—Ž‹‰ –Š‡ ƒ’’Ž‹…ƒ– Šƒ† ƒ ’”‘Œ‡…– ‘ˆϐ‹…‡ ‹ †‹ƒǡ ™Š‹…Š …‘•–‹–—–‡† ƒ
‡”ƒ‡–•–ƒ„Ž‹•Š‡–ƒ†™ƒ•’”‡’ƒ”‹‰‹–•ϐ‹ƒ…‹ƒŽ•–ƒ–‡‡–•ƒ•”‡“—‹”‡†—†‡”†‹ƒ‘’ƒ‹‡•
…–ǡͳͻͷ͸Ǥ‘”†‡”–‘…‘’Ž›™‹–Š–Š‡”‡“—‹”‡‡–‘ˆ’”‘˜‹•‹‘•”‡‰ƒ”†‹‰’”‡’ƒ”‹‰”‘ϐ‹–Ƭ‘••
……‘—– ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡ †‹ƒ ‘’ƒ‹‡• …–ǡ ‹– ‹• ‡••‡–‹ƒŽ –Šƒ– –Š‡ ˆ‘”‡‹‰
…‘’ƒ›•Š‘—Ž†Šƒ˜‡ƒ’Žƒ…‡‘ˆ„—•‹‡••™‹–Š‹†‹ƒǤ‹‹Žƒ”˜‹‡™Šƒ•„‡‡—’Š‡Ž†„›‹–Š‡”‡…‡–”—Ž‹‰
‘ˆ”ƒšƒ‹”ƒ…‹ϐ‹…–†Ǥǡ”‡ȏʹͲͳͲȐȋȌ
 —”–Š‡”ǡ ‹ …ƒ•‡‘ˆƒ ˆ‘”‡‹‰ …‘’ƒ› ƒ› ‹…‘‡…Šƒ”‰‡ƒ„Ž‡ ƒ– ƒ ”ƒ–‡ Ž‘™‡”–Šƒ –Š‡ ”ƒ–‡ •’‡…‹ϐ‹‡†‹
•‡…–‹‘ͳͳͷ •ŠƒŽŽ„‡”‡†—…‡†ˆ”‘–Š‡„‘‘’”‘ϐ‹–•ƒ†–Š‡…‘””‡•’‘†‹‰‡š’‡†‹–—”‡™‹ŽŽ„‡ƒ††‡†
„ƒ…Ǥ
 ‹–Šƒ˜‹‡™–‘’”‘˜‹†‡…‡”–ƒ‹–›‹–ƒšƒ–‹‘‘ˆˆ‘”‡‹‰…‘’ƒ‹‡•ǡƒƒ‡†‡–Šƒ•„‡‡ƒ†‡˜‹†‡
‹ƒ…‡…–ǡʹͲͳ͸•‘ƒ•–‘’”‘˜‹†‡–Šƒ–™‹–Š‡ˆˆ‡…–ˆ”‘ͲͳǤͲͶǤʹͲͲͳǡ–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͳͷ 
•ŠƒŽŽ‘–„‡ƒ’’Ž‹…ƒ„Ž‡–‘ƒˆ‘”‡‹‰…‘’ƒ›‹ˆǦ
Ȉ –Š‡ƒ••‡••‡‡‹•ƒ”‡•‹†‡–‘ˆƒ…‘—–”›‘”ƒ•’‡…‹ϐ‹‡†–‡””‹–‘”›™‹–Š™Š‹…Š†‹ƒŠƒ•ƒƒ‰”‡‡‡–
”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͻͲ‘”–Š‡‡–”ƒŽ
‘˜‡”‡–Šƒ•ƒ†‘’–‡†ƒ›ƒ‰”‡‡‡–
—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͻͲƒ†–Š‡ƒ••‡••‡‡•†‘‡•‘–Šƒ˜‡ƒ’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹
†‹ƒ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—…Š‰”‡‡‡–Ǣ‘”
Ȉ –Š‡ƒ••‡••‡‡‹•ƒ”‡•‹†‡–‘ˆƒ…‘—–”›™‹–Š™Š‹…Š†‹ƒ†‘‡•‘–Šƒ˜‡ƒƒ‰”‡‡‡–‘ˆ–Š‡ƒ–—”‡
”‡ˆ‡””‡†ƒ„‘˜‡ƒ†–Š‡ƒ••‡••‡‡‹•‘–”‡“—‹”‡†–‘•‡‡”‡‰‹•–”ƒ–‹‘—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰
‹ˆ‘”…‡”‡Žƒ–‹‰–‘…‘’ƒ‹‡•Ǥ
 ‘”–Š‡”‡‘˜ƒŽ‘ˆ†‘—„–•ǡ‹–‹•Š‡”‡„›…Žƒ”‹ϐ‹‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ‘–„‡ƒ’’Ž‹…ƒ„Ž‡
ƒ†•ŠƒŽŽ„‡†‡‡‡†‡˜‡”–‘Šƒ˜‡„‡‡ƒ’’Ž‹…ƒ„Ž‡–‘ƒƒ••‡••‡‡ǡ„‡‹‰ƒˆ‘”‡‹‰…‘’ƒ›ǡ™Š‡”‡‹–•–‘–ƒŽ
‹…‘‡…‘’”‹•‡••‘Ž‡Ž›‘ˆ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘„—•‹‡••”‡ˆ‡””‡†–‘‹•‡…–‹‘ͶͶ‘”•‡…–‹‘ͶͶ‘”
•‡…–‹‘ͶͶ‘”•‡…–‹‘ͶͶƒ†•—…Š‹…‘‡Šƒ•„‡‡‘ˆˆ‡”‡†–‘–ƒšƒ––Š‡”ƒ–‡••’‡…‹ϐ‹‡†‹–Š‘•‡
•‡…–‹‘•Ǥ
 Ͷ͹ʹ Lesson 8 Ȉ EP-TL

ͻǤ Š‡–Š‡”••‡••‹‰‘ˆϐ‹…‡”Šƒ•–Š‡’‘™‡”–‘‡šƒ‹‡…‘””‡…–‡••‘ˆ‡–’”‘ϐ‹–•Š‘™‹’”‘ϐ‹–ƒ†
Ž‘••……‘—–ȏ’‘ŽŽ‘›”‡•–†ǤǤȋʹͲͲʹȌʹͷͷʹ͹͵ȋȌȐ
 Š‡†‘‡•‘–Šƒ˜‡–Š‡’‘™‡”–‘“—‡•–‹‘…‘””‡…–‡••‘ˆƬȀ…’”‡’ƒ”‡†„›ƒ••‡••‡‡ƒ†…‡”–‹ϐ‹‡†„›
–Š‡•–ƒ–—–‘”›ƒ—†‹–‘”•‘ˆ–Š‡…‘’ƒ›ƒ•Šƒ˜‹‰„‡‡’”‡’ƒ”‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆƒ”–•
ƒ†‘ˆ…Š‡†—Ž‡–‘–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ǤŠ‡†‘‡•‘–Šƒ˜‡–Š‡Œ—”‹•†‹…–‹‘–‘‰‘„‡Š‹†–Š‡
‡–’”‘ϐ‹–•Š‘™‹–Š‡ƬȀ…‡š…‡’––‘–Š‡‡š–‡–’”‘˜‹†‡†‹–Š‡š’Žƒƒ–‹‘ͳ–‘‡…–‹‘ͳͳͷ Ǥ
 –Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•••‡••‹‰‘ˆϐ‹…‡”Šƒ•’‘™‡”–‘”‡™‘”‘””‡™”‹–‡–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ǣ
Ȉ Š‡”‡–Š‡’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–•—„‹––‡†‹•‘–ƒ•’‡”ƒ”–ƒ†‘ˆ…Š‡†—Ž‡‘ˆ‘’ƒ‹‡•
…–ǡʹͲͳ͵Ǥ
Ȉ Š‡”‡ƒ……‘—–‹‰’‘Ž‹…‹‡•‘”ƒ……‘—–‹‰•–ƒ†ƒ”†•‘””ƒ–‡‘ˆ†‡’”‡…‹ƒ–‹‘ƒ†‘’–‡†ƒ”‡†‹ˆˆ‡”‡–
ˆ”‘–Š‘•‡ƒ†‘’–‡†ˆ‘”–Š‡’”‘ϐ‹–ƒ†Ž‘••’”‡’ƒ”‡†ˆ‘”–Š‡
Ǥ

ȏͳͳͷ Ȑ

”‡†‹–ˆ‘”–ƒš‡•’ƒ‹†ƒ•’‡”‡…–‹‘ͳͳͷ ‹‡ƒ”Ž‹‡”›‡ƒ”•ȋ‹™Š‹…ŠŽ‹ƒ„‹Ž‹–›™ƒ•‘”‡–Šƒ–ƒšŽ‹ƒ„‹Ž‹–›ƒ•
’‡” ‘”ƒŽ ’”‘˜‹•‹‘• ‘ˆ –Š‡ …–Ȍ ‹• ƒ˜ƒ‹Žƒ„Ž‡ ‹ –Š‡ ••‡••‡– ›‡ƒ” ‹ ™Š‹…Š ƒš ’ƒ›ƒ„Ž‡ ‘ –Š‡ –‘–ƒŽ ‹…‘‡
…‘’—–‡†—†‡”–Š‡‘”ƒŽ’”‘˜‹•‹‘•‘ˆ–Š‹•…–‹•‘”‡–Šƒ–ƒš’ƒ›ƒ„Ž‡—Ȁ•ͳͳͷ ˆ‘”–Šƒ–••‡••‡–›‡ƒ”Ǥ
”‡†‹––‘„‡•‡–‘ˆˆ‹ƒα‡‰—Žƒ”…‘‡–ƒšǦ‹‹—ƒŽ–‡”ƒ–‡–ƒš
ƒ””‹‡† ‘”™ƒ”†‘ˆ”‡†‹–
”‡†‹–‘ˆ‹”‡•’‡…–‘ˆ–ƒš‡š…‡••’ƒ‹†—†‡”‡…–‹‘ͳͳͷ ™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ƒ†‹–…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†ˆ‘”
ͳͷ••‡••‡–‡ƒ”••—……‡‡†‹‰–Š‡ƒ••‡••‡–›‡ƒ”‹™Š‹…Š–Š‡…”‡†‹–„‡…ƒ‡ƒŽŽ‘™ƒ„Ž‡Ǥ
Š‡ƒ‘—–‘ˆ…”‡†‹–•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†–‘–Š‡•—„•‡“—‡–›‡ƒ”–‘–Š‡‡š–‡–•—…Š
…”‡†‹– ”‡Žƒ–‡• –‘ –Š‡ †‹ˆˆ‡”‡…‡ „‡–™‡‡ –Š‡ ƒ‘—– ‘ˆ ˆ‘”‡‹‰ –ƒš …”‡†‹– ȋ Ȍ ƒŽŽ‘™‡† ƒ‰ƒ‹•–  ƒ† 
ƒŽŽ‘™ƒ„Ž‡ƒ‰ƒ‹•––Š‡–ƒš…‘’—–‡†—†‡””‡‰—Žƒ”’”‘˜‹•‹‘•‘ˆ–Š‡…–Ǥ
…ƒ•‡‘ˆ…‘˜‡”•‹‘‘ˆƒ…‘’ƒ›‹–‘ǡ”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡Šƒ†•‘ˆ…‘’ƒ›•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘Ǥ

ŽŽ—•–”ƒ–‹‘ʹǣ
—„‡”‘ˆ›‡ƒ”•ˆ‘”™Š‹…Š…”‡†‹–‘ˆ‡š…‡••’ƒ‹†—†‡”•‡…–‹‘ͳͳͷ …ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†‹•Ȃ
ȋƒȌ ͹••‡••‡–›‡ƒ”• ȋ„Ȍ ͺ••‡••‡–›‡ƒ”•
ȋ…Ȍ ͳͷ••‡••‡–›‡ƒ”• ȋ†Ȍ ͻ••‡••‡–›‡ƒ”•Ǥ

‘Ž—–‹‘ǣȋ…Ȍ ͳͷ••‡••‡–›‡ƒ”•

ŽŽ—•–”ƒ–‹‘͵ǣ
†‘‡•–‹…‘’ƒ›ǡ–†Ǥǡˆ—”‹•Š‡•–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•‹”‡•’‡…–‘ˆʹͲʹʹǦʹ͵ƒ†•‘Ž‹…‹–•›‘—”
ƒ†˜‹…‡‘–Š‡ƒ’’Ž‹…ƒ–‹‘‘ˆ‡…–‹‘ͳͳͷ Ǥ‘—ƒ”‡ƒŽ•‘”‡“—‹”‡†–‘…‘’—–‡–Š‡–‘–ƒŽ‹…‘‡–ƒš’ƒ›ƒ„Ž‡Ǥ

ƒ”–‹…—Žƒ”• ‘—–ȋ•ǤȌ

”‘ϐ‹–•ƒ•’‡”Ƭ……‘—–ƒ•’‡”‘’ƒ‹‡•…–ǡʹͲͳ͵ ͳǡͻͷǡͲͲǡͲͲͲ

Š‹•‹…Ž—†‡•ǣ

ƒȌ š…‡••”‡ƒŽ‹œ‡†‘•ƒŽ‡‘ˆŽƒ†Š‡Ž†ƒ•‹˜‡•–‡– ͵ͲǡͲͲǡͲͲͲ
Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͹͵

„Ȍ ‡’”‡…‹ƒ–‹‘‘„ƒ•‹• ͳǡͲͲǡͲͲǡͲͲͲ

…Ȍ ”‘˜‹•‹‘ˆ‘”Ž‘••‡•‘ˆ•—„•‹†‹ƒ”‹‡• ͸ͲǡͲͲǡͲͲͲ

‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡’‡”…‘‡ƒš—Ž‡•ǡͳͻ͸ʹ ͳǡͷͲǡͲͲǡͲͲͲ


‘•ƒŽ‡‘ˆŽƒ†‡–‹‘‡†ƒ„‘˜‡ ͶͲǡͲͲǡͲͲͲ

ȀˆŽ‘••‡• ͷͲǡͲͲǡͲͲͲ

ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘ ͸ͲǡͲͲǡͲͲͲ

Š‡‘’ƒ›Šƒ•ƒŽ•‘”‡’”‡•‡–‡†–‘›‘—–Šƒ––Š‡‡š…‡••”‡ƒŽ‹œ‡†‘•ƒŽ‡‘ˆŽƒ†…ƒ‘–ˆ‘”’ƒ”–‘ˆ–Š‡„‘‘
’”‘ϐ‹–•—Ȁ•ͳͳͷ Ǥ‘—™‹ŽŽŠƒ˜‡–‘†‡ƒŽ™‹–Š–Š‡‹••—‡ƒ••—‹‰–Šƒ––Š‡‘Ǥ‹•‘–”‡“—‹”‡†–‘…‘’Ž›™‹–Š†Ǥ
ǤŠ‡ƒ—ƒŽ–—”‘˜‡”‘ˆ–†Ǥ™ƒ•ͶͲ”‘”‡•Ǥ
‘Ž—–‹‘ǣ

C‘’—–ƒ–‹‘‘ˆ‘–ƒŽ…‘‡’‡”…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ

ƒ”–‹…—Žƒ”• ‘—–ȋ•ǤȌ ‘—–ȋ•ǤȌ

‡–”‘ϐ‹–’‡”Ƭ……‘—– ͳǡͻͷǡͲͲǡͲͲͲ
‡••ǣ š…‡••”‡ƒŽ‹œ‡†‘•ƒŽ‡‘ˆŽƒ†ȋ–”‡ƒ–‡†•‡’ƒ”ƒ–‡Ž›Ȍ ͵ͲǡͲͲǡͲͲͲ
ͳǡ͸ͷǡͲͲǡͲͲͲ
††ǣ ‡’”‡…‹ƒ–‹‘‘ƒ•‹• ͳǡͲͲǡͲͲǡͲͲͲ

”‘˜‹•‹‘•ˆ‘”Ž‘••‡•‘ˆ•—„•‹†‹ƒ”‹‡• ͸ͲǡͲͲǡͲͲͲ

ͳǡ͸ͲǡͲͲǡͲͲͲ
‘–ƒŽ ͵ǡʹͷǡͲͲǡͲͲͲ
‡••ǣ ‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ„Ž‡’‡”…‘‡Ǧ–ƒš…– ȋͳǡͷͲǡͲͲǡͲͲͲȌ

—•‹‡••…‘‡ ͳǡ͹ͷǡͲͲǡͲͲͲ

‡••ǣ ‡–Ǧ‘ˆˆ‘ˆȀ Ž‘••‡• ȋͷͲǡͲͲǡͲͲͲȌ
‡–—•‹‡••…‘‡ ͳǡʹͷǡͲͲǡͲͲͲ
ƒ’‹–ƒŽ
ƒ‹• ͶͲǡͲͲǡͲͲͲ
‘–ƒŽ…‘‡ ͳǡ͸ͷǡͲͲǡͲͲͲ

‡••ǣ ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘ ͸ͲǡͲͲǡͲͲͲ

‘–ƒŽ…‘‡’‡”ƒ•…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ ͳǡͲͷǡͲͲǡͲͲͲ

‘’—–ƒ–‹‘‘ˆ‘‘”‘ϐ‹–—Ȁ•ͳͳͷ 
ƒ”–‹…—Žƒ”• ‘—–ȋ•ǤȌ ‘—–ȋ•ǤȌ
‡–”‘ϐ‹–’‡”Ƭ……‘—– ͳǡͻͷǡͲͲǡͲͲͲ
††ǣ ‡’”‡…‹ƒ–‹‘‘ƒ•‹• ͳǡͲͲǡͲͲǡͲͲͲ
Ͷ͹Ͷ Lesson 8 Ȉ EP-TL

”‘˜‹•‹‘•ˆ‘”Ž‘••‡•‘ˆ•—„•‹†‹ƒ”‹‡• ͸ͲǡͲͲǡͲͲͲ ͳǡ͸ͲǡͲͲǡͲͲͲ

͵ǡͷͷǡͲͲǡͲͲͲ

‡••ǣ ‡’”‡…‹ƒ–‹‘ ȋͳǡͲͲǡͲͲǡͲͲͲȌ

—•‹‡••…‘‡ ʹǡͷͷǡͲͲǡͲͲͲ

‡••ǣ Ȁˆ—•‹‡••‘••ƒ•‹–ǯ•Ž‡••–Šƒƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘ ȋͷͲǡͲͲǡͲͲͲȌ

‘‘”‘ϐ‹–• ʹǡͲͷǡͲͲǡͲͲͲ

ȋƒȌ ‘–‡ –Šƒ– –Š‡ ’”‘ϔ‹– ‘ •ƒŽ‡ ‘ˆ Žƒ† Š‡Ž† ƒ• ‹˜‡•–‡– ‹• ‘– ‡š…Ž—†‡† ˆ”‘ –Š‡ Ƭ ˆ‘” ’—”’‘•‡• ‘ˆ
…‘’—–‹‰–Š‡‘‘”‘ϔ‹–•Ǥ 
ȋ„Ȍ ‘–‡–Šƒ––Š‡Ž‡ƒ•–‘ˆ–Š‡ȀˆŽ‘••ƒ†–Š‡ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘‹•”‡†—…‡†–‘…‘’—–‡‘‘”‘ϔ‹–•Ǥ

…‘‡ƒš‹ƒ„‹Ž‹–›—†‡”‘”ƒŽ”‘˜‹•‹‘•

ƒš‹ƒ„‹Ž‹–›̷ʹͷΨƒ•–Š‡—”‘˜‡”‹•δͶͲͲ”‘”‡• ʹ͸ǡʹͷǡͲͲͲ

††ǣ —”…Šƒ”‰‡̷͹Ψƒ•–Š‡…‘‡‹•εͳ”Ǥ ͳǡͺ͵ǡ͹ͷͲ

‘–ƒŽ ƒšƒ›ƒ„Ž‡ ʹͺǡͲͺǡ͹ͷͲ

††ǣ ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͳǡͳʹǡ͵ͷͲ

‘–ƒŽ …‘‡ƒš‹ƒ„‹Ž‹–› ʹͻǡʹͳǡͳͲͲ

…‘‡ƒš‹ƒ„‹Ž‹–›’‡””‘˜‹•‹‘•

ͳͷΨ‘ˆ‘‘”‘ϐ‹–• ͵Ͳǡ͹ͷǡͲͲͲ

††ǣ —”…Šƒ”‰‡̷͹Ψƒ•–Š‡…‘‡‹•εͳ”Ǥ ʹǡͳͷǡʹͷͲ

‘–ƒŽƒšƒ›ƒ„Ž‡ ͵ʹǡͻͲǡʹͷͲ

††ǣ ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͳǡ͵ͳǡ͸ͳͲ

‘–ƒŽ…‘‡ƒš‹ƒ„‹Ž‹–› ͵Ͷǡʹͳǡͺ͸Ͳ

‘–‡ǣ
ȋƒȌ ‹…‡ͳͷΨ‘ˆ„‘‘’”‘ϐ‹–•‡š…‡‡†•–Š‡–ƒš’ƒ›ƒ„Ž‡’‡”…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǡ–Š‡„‘‘’”‘ϐ‹–™‘—Ž†„‡
†‡‡‡† –‘ „‡ –Š‡ –‘–ƒŽ ‹…‘‡ ƒ† –Š‡ –ƒš ’ƒ›ƒ„Ž‡ ‘ •—…Š –‘–ƒŽ ‹…‘‡ǡ ™Š‹…Š ‹•  ͵Ͷǡʹͳǡͺ͸Ͳ
ȋ”‘—†‡†‘ˆˆȌ™‘—Ž†„‡…‘‡–Š‡Ž‹ƒ„‹Ž‹–›ˆ‘”ʹͲʹʹǦʹ͵ˆ‘”–Š‡‘’ƒ›Ǥ
ȋ„Ȍ ‹–Š”‡‰ƒ”†•–‘–Š‡…‘’ƒ›ǯ•”‡’”‡•‡–ƒ–‹‘ǡ‹”‡•’‡…–‘ˆ–Š‡…ƒ’‹–ƒŽ‰ƒ‹•ǡ™Š‡–Š‡”Ž‹ƒ„Ž‡ˆ‘”„‘‘
’”‘ϐ‹––ƒš—Ȁ•ͳͳͷ ǡ‹–ƒ›„‡‘–‡†–Šƒ–•‹…‡–Š‡‡š…‡••”‡ƒŽ‹•‡†‘•ƒŽ‡‘ˆŽƒ†™Š‹…Š™ƒ•Š‡Ž†ƒ•
‹˜‡•–‡–ǡŠƒ•„‡‡‹…Ž—†‡†‹–Š‡‡–’”‘ϐ‹–…‘’—–‡†’‡”…ŠǤ‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ǡ‹–
•ŠƒŽŽˆ‘”’ƒ”–‘ˆ‘‘”‘ϐ‹–•ȋ‘„ƒ› —†‰‡‡–‹˜•Ǥ‡‡ƒ›ƒŽ˜‡•–‡–‘˜––†ǤȌ
Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͹ͷ

ŽŽ—•–”ƒ–‹‘Ͷǣ
‘ƒ–†Ǥǡƒ”‡•‹†‡–‘Ǥǡ‡ƒ”‡†ƒ’”‘ϐ‹–‘ˆͳͷǡͲͲǡͲͲͲȀǦƒˆ–‡”†‡„‹–Ȁ…”‡†‹–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–•ǣ
–‡•†‡„‹–‡†
ƒȌ ”‘˜‹•‹‘•ˆ‘”–Š‡Ž‘••‡•‘ˆ—„•‹†‹ƒ”‹‡•Ǣ͹ͲǡͲͲͲ
„Ȍ ”‘˜‹•‹‘ˆ‘”†‘—„–ˆ—Ž†‡„–•Ǣ͹ͷǡͲͲͲ
…Ȍ ”‘˜‹•‹‘ˆ‘”…‘‡ƒšǢͳͲͷǡͲͲͲ
†Ȍ ”‘˜‹•‹‘ˆ‘”
”ƒ–—‹–›„ƒ•‹•ƒ…–—ƒ”‹ƒŽ˜ƒŽ—ƒ–‹‘ǢʹͲͲǡͲͲͲ
‡Ȍ ‡’”‡…‹ƒ–‹‘Ǣ͵͸ͲǡͲͲͲ
ˆȌ –‡”‡•––‘ ‹ƒ…‹ƒŽ•–‹–—–‹‘ȋ—’ƒ‹†„‡ˆ‘”‡ϐ‹Ž‹‰‘ˆ”‡–—”ȌǢͳͲͲǡͲͲͲ
‰Ȍ ‡ƒŽ–›ˆ‘”‹ˆ”ƒ…–‹‘‘ˆŽƒ™ǢͷͲǡͲͲͲ
–‡•…”‡†‹–‡†
ƒȌ ”‘ϐ‹–•ˆ”‘—‹–ȋ•Ȍ‡•–ƒ„Ž‹•Š‡†‹ǢͷͲͲǡͲͲͲ
„Ȍ Šƒ”‡‹‹…‘‡‘ˆƒƒ•ƒ‡„‡”Ǣͳ͹ͷǡͲͲͲ
…Ȍ ‘‰‡”ƒ’‹–ƒŽ
ƒ‹•Ǣ͵ͲͲǡͲͲͲ
–Š‡”ˆ‘”ƒ–‹‘
ƒȌ ‡’”‡…‹ƒ–‹‘‹…Ž—†‡•ͳͷͲǡͲͲͲ‘ƒ……‘—–‘ˆ”‡˜ƒŽ—ƒ–‹‘‘ˆϐ‹š‡†ƒ••‡–•
„Ȍ ‡’”‡…‹ƒ–‹‘’‡”…‘‡ƒš—Ž‡•‹•ʹͺͲǡͲͲͲ
…Ȍ ƒŽƒ…‡‘ˆƬ……‘—–‘–Š‡ƒ••‡–••‹†‡‘ˆȀƒ•ƒ–͵ͳ•–ƒ”…ŠǡʹͲʹͲ™ƒ•ͳͲǡͲͲǡͲͲͲǢ‘ˆ™Š‹…Š
–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘™ƒ•ͶͲͲǡͲͲͲ
†Ȍ ƒ’‹–ƒŽ
ƒ‹•Šƒ•„‡‡‹˜‡•–‡†‹•’‡…‹ϐ‹‡†ƒ••‡–•—Ȁ•ͷͶ
‡Ȍ Š‡ǡ‘ˆ™Š‹…Š–Š‡‘Ǥ‹•ƒ‡„‡”Šƒ•’ƒ‹†–Š‡–ƒšƒ–ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡
ˆȌ ”‘˜‹•‹‘ˆ‘”…‘‡ƒš‹…Ž—†‡•ͶͷǡͲͲͲƒ•‹–‡”‡•–
‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡—Ȁ•ͳͳͷ ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳˆ‘”ʹͲʹʹǦʹ͵ǡƒ••—‹‰–Šƒ––Š‡
‘Ǥ‹•‘–”‡“—‹”‡†–‘…‘’Ž›™‹–ŠǤ
‘Ž—–‹‘ǣ

‘’—–ƒ–‹‘‘ˆ‘‘”‘ϐ‹–—Ȁ•ͳͳͷ 
ƒ”–‹…—Žƒ”• ‘—–ȋ•ǤȌ ‘—–ȋ•ǤȌ
‡–”‘ϐ‹–’‡”Ƭ……‘—– ͳͷǡͲͲǡͲͲͲ
††ǣ ”‘˜‹•‹‘•ˆ‘”•—„•‹†‹ƒ”‹‡•ǯŽ‘••‡• ͹ͲǡͲͲͲ
”‘˜‹•‹‘ˆ‘”†‘—„–ˆ—Ž†‡„–• ͹ͷǡͲͲͲ
”‘˜‹•‹‘ˆ‘”…‘‡ƒš ͳǡͲͷǡͲͲͲ
‡’”‡…‹ƒ–‹‘ ͵ǡ͸ͲǡͲͲͲ
͸ǡͳͲǡͲͲͲ
ʹͳǡͳͲǡͲͲͲ
‡••ǣ Šƒ”‡‹‹…‘‡‘ˆƒ ͳǡ͹ͷǡͲͲͲ
‡’”‡…‹ƒ–‹‘ȋ‡š…ŽǤ‡˜ƒŽǤ‘—–•Ȍ ʹǡͳͲǡͲͲͲ
ƒ„•‘”„‡†—•‹‡••‘••‡• ͶǡͲͲǡͲͲͲ
ȋ͹ǡͺͷǡͲͲͲȌ
 Ͷ͹͸ Lesson 8 Ȉ EP-TL

‘‘”‘ϐ‹–• ͳ͵ǡʹͷǡͲͲͲ
‹ƒ„‹Ž‹–›̷ͳͷΨ ͳͻǡͺ͹ǡͷͲ
††ǣ ‡ƒŽ–Šƒ††—…ƒ–‹‘‡••̷ͶΨ ͹ǡͻͷͲ
‹ƒ„‹Ž‹–›ȋ”‘—†‡†‘ˆˆȌ ʹͲǡ͸͹ͲͲ

‘–‡ǣ
ͳǤ –‡”‡•––‘ ǯ•Ȁƒ•™Š‹…Šƒ”‡—’ƒ‹†’”‹‘”–‘ϐ‹Ž‹‰‘ˆ”‡–—”ƒ†’‡ƒŽ–‹‡•ƒ”‡‘–•’‡…‹ϐ‹‡†‹–‡•—Ȁ•
ͳͳͷ ƒ†Š‡…‡‘–ƒ††‡†„ƒ…
ʹǤ ”‘˜‹•‹‘ˆ‘”
”ƒ–—‹–›‹ƒ„‹Ž‹–›„ƒ•‡†‘ƒ…–—ƒ”‹ƒŽ˜ƒŽ—ƒ–‹‘‹•ƒƒ•…‡”–ƒ‹‡†Ž‹ƒ„‹Ž‹–›ƒ†Š‡…‡•Š‘—Ž†‘–
„‡ƒ††‡†„ƒ…–‘ƒ•…‡”–ƒ‹„‘‘’”‘ϐ‹–•ȋ˜•Ǥ…ŠŒƒ› ‘”‰‹‰•Ǥ–†ǤȌ
͵Ǥ ƒ’‹–ƒŽ
ƒ‹•”‡ϐŽ‡…–‡†‹–Š‡Ƭ™‹ŽŽˆ‘”ƒ’ƒ”–‘ˆ–Š‡„‘‘’”‘ϐ‹–•‡˜‡‹ˆ–Š‡‹˜‡•–‡–•—Ȁ•ͷͶŠƒ˜‡
„‡‡ƒ†‡ǤŠ‡”‡ˆ‘”‡ǡ–Š‡•‡…ƒ‘–„‡”‡†—…‡†Ǥȋ˜•Ǥ‡‡ƒ›ŽƒŽ˜‡•–‡–‘ǤǤ–†Ȍ
ͶǤ Šƒ”‡‘ˆ–Š‡ǯ•‹…‘‡ƒ•ƒ‡„‡”‹•”‡†—…‡†ƒ•–Š‡Šƒ•ƒŽ”‡ƒ†›’ƒ‹†–Š‡–ƒšƒ–ƒš‹—ƒ”‰‹ƒŽ”ƒ–‡

ŽŽ—•–”ƒ–‹‘ͷǣ
Š‡–ƒ„Ž‡„‡Ž‘™Š‹‰ŠŽ‹‰Š–•ƒ†‡š’Žƒ‹•–Š‡‘†—•‘ˆ”‡†‹–ǡƒ†Š‘™‹–‹•—–‹Ž‹•‡†ƒ†…ƒ””‹‡†ˆ‘”™ƒ”†Ǥ

Ȁ

‘”ƒŽƒš
Ǥ ‹ƒ„‹Ž‹–›ȋȌ ƒšƒ›ƒ„Ž‡ ”‡†‹–—–‹Ž‹•‡† ”‡†‹–…Ȁˆ
‹ƒ„‹Ž‹–›
ʹͲͲͻǦͳͲ ͳͲͲ ͵ͲͲ ͵ͲͲ Ǧ ʹͲͲ
ʹͲͳͲǦͳͳ ͳʹͲ ͻͲ ͳʹͲ ͵Ͳ ͳ͹Ͳ
ʹͲͳͳǦͳʹ ͳͷͲ ͳͳͲ ͳͷͲ ͶͲ ͳ͵Ͳ
ʹͲͳʹǦͳ͵ ͳͺͲ ʹͲͲ ʹͲͲ Ǧ ͳͷͲ
ʹͲͳ͵ǦͳͶ ʹͲͲ ͳͻͲ ʹͲͲ ͳͲ ͳͶͲ
ʹͲͳͶǦͳͷ ͵ͲͲ ʹͺͲ ͵ͲͲ ʹͲ ͳʹͲ
ʹͲͳͷǦͳ͸ ʹͷͲ ʹ͵Ͳ ʹͷͲ ʹͲ ͳͲͲ
ʹͲͳ͸Ǧͳ͹ ʹʹͷ ͳ͹ͷ ʹʹͷ ͷͲ ͷͲ
ʹͲͳ͹Ǧͳͺ ʹͷͲ ʹͶͲ ʹͷͲ ͳͲ ͶͲ
ʹͲͳͺǦͳͻ ʹ͹ͷ ʹ͹Ͳ ʹ͹ͷ ͷ ͵ͷ
ʹͲͳͻǦʹͲ ͵ͷͲ ͵ͳͷ ͵ͷͲ ͵ͷ Ͳ

 

‹˜‹†‡†‹•–”‹„—–‹‘ƒšǮǯȏ‡…–‹‘ͳͳͷǦȐǣ–‹•ƒ–ƒš‘†‹˜‹†‡†ȋ‹–‡”‹‘”ϐ‹ƒŽȌ†‡…Žƒ”‡†ǡ†‹•–”‹„—–‡†
‘”’ƒ‹†„›ƒ…‘’ƒ›ȋ™Š‡–Š‡”‘—–‘ˆ…—””‡–‘”ƒ……——Žƒ–‡†’”‘ϐ‹–•ȌǤ‹˜‹†‡††‹•–”‹„—–‹‘–ƒš‹•‹ƒ††‹–‹‘–‘
‹…‘‡ –ƒš ‘ –‘–ƒŽ ‹…‘‡Ǥ ‡” Dz‹˜‹†‡†dz Šƒ• –Š‡ •ƒ‡ ‡ƒ‹‰ ƒ• †‡ϐ‹‡† —†‡” •‡…–‹‘ ʹȋʹʹȌǤ Š‹• –ƒš ‹•
ƒ’’Ž‹…ƒ„Ž‡‘‘‡•–‹…‘’ƒ›‘Ž›Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͹͹

Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͳͷǦȋͳȌ•ŠƒŽŽ‘–„‡ƒ’’Ž‹…ƒ„Ž‡™Ǥ‡ǤˆǤ’”‹ŽͳǡʹͲʹͲƒ•†‹˜‹†‡†•ŠƒŽŽ‘™–ƒšƒ„Ž‡
‹–Š‡Šƒ†•‘ˆ–Š‡”‡…‹’‹‡–ȏ•ƒ‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐǤ
Š‡ ‹ƒ…‡…–ǡʹͲʹͲŠƒ•ƒ„‘Ž‹•Š‡†–Š‡ƒ†‘˜‡–‘–Š‡…Žƒ••‹…ƒŽ•›•–‡‘ˆ–ƒšƒ–‹‘™Š‡”‡‹†‹˜‹†‡†•ƒ”‡
–ƒš‡†‹–Š‡Šƒ†•‘ˆ–Š‡‹˜‡•–‘”•ǤŠ‡”‡ˆ‘”‡ǡ–Š‡’”‘˜‹•‹‘‘ˆ‡…–‹‘ͳͳͷǦ•ŠƒŽŽ‘–„‡ƒ’’Ž‹…ƒ„Ž‡‹ˆ–Š‡†‹˜‹†‡†
‹•†‹•–”‹„—–‡†‘ ‘”ƒˆ–‡” ͲͳǦͲͶǦʹͲʹͲǤŠ—•ǡ‹ˆ–Š‡ †‹˜‹†‡† ‹•†‹•–”‹„—–‡†‘ ‘”ƒˆ–‡” ͲͳǦͲͶǦʹͲʹͲ–Š‡ †‘‡•–‹…
…‘’ƒ‹‡••ŠƒŽŽ‘–Ž‹ƒ„Ž‡–‘’ƒ›ƒ†ǡ…‘•‡“—‡–Ž›ǡ•Šƒ”‡Š‘Ž†‡”••ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš‘•—…Š†‹˜‹†‡†
‹…‘‡Ǥ•†‹˜‹†‡†™‘—Ž†‘™„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”ǡ˜ƒ”‹‘—•’”‘˜‹•‹‘•‘ˆ–Š‡…–Šƒ˜‡„‡‡
”‡˜‹˜‡†•—…Šƒ•ƒŽŽ‘™ƒ„‹Ž‹–›‘ˆ‡š’‡•‡•ˆ”‘†‹˜‹†‡†‹…‘‡ǡ†‡†—…–‹„‹Ž‹–›‘ˆ–ƒšˆ”‘†‹˜‹†‡†‹…‘‡ǡ–”‡ƒ–‡–
‘ˆ‹–‡”Ǧ…‘”’‘”ƒ–‡†‹˜‹†‡†ǡ‡–…Ǥ
–‡”Ǧ…‘”’‘”ƒ–‡‹˜‹†‡†”‡Ž‹‡ˆǣ•–Š‡–ƒšƒ„‹Ž‹–›‘ˆ†‹˜‹†‡†Šƒ•„‡‡•Š‹ˆ–‡†ˆ”‘…‘’ƒ‹‡•–‘•Šƒ”‡Š‘Ž†‡”•
™Ǥ‡ǤˆǤͲͳǤͲͶǤʹͲʹͲǡ–Š‡
‘˜‡”‡–Šƒ•‹–”‘†—…‡†ƒ‡™•‡…–‹‘ͺͲ—†‡”–Š‡…––‘”‡‘˜‡–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–
™Š‡”‡ ƒ †‘‡•–‹… …‘’ƒ› ”‡…‡‹˜‡• ƒ †‹˜‹†‡† ˆ”‘ ƒ‘–Š‡” †‘‡•–‹… …‘’ƒ›Ǥ ‘™‡˜‡”ǡ ‘–Š‹‰ Šƒ• „‡‡
’”‡•…”‹„‡†™Š‡”‡ƒ†‘‡•–‹……‘’ƒ›”‡…‡‹˜‡•†‹˜‹†‡†ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›ƒ†ˆ—”–Š‡”†‹•–”‹„—–‡–Š‡•ƒ‡
–‘‹–••Šƒ”‡Š‘Ž†‡”•Ǥȏ•ƒ‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
Š‡–ƒšƒ„‹Ž‹–›‹•—…Š…ƒ•‡••ŠƒŽŽ„‡ƒ•—†‡”ǣ
Domestic company receives dividend from another domestic companyǣŠ‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͺͲ”‡‘˜‡•
–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–„›’”‘˜‹†‹‰–Šƒ–‹–‡”Ǧ…‘”’‘”ƒ–‡†‹˜‹†‡†•ŠƒŽŽ„‡”‡†—…‡†ˆ”‘–‘–ƒŽ‹…‘‡‘ˆ…‘’ƒ›”‡…‡‹˜‹‰
–Š‡†‹˜‹†‡†‹ˆ•ƒ‡‹•ˆ—”–Š‡”†‹•–”‹„—–‡†–‘•Šƒ”‡Š‘Ž†‡”•‘‡‘–Š’”‹‘”–‘–Š‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”Ǥ
‘‡•–‹……‘’ƒ›”‡…‡‹˜‡•†‹˜‹†‡†ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›ǣ‹˜‹†‡†”‡…‡‹˜‡†„›ƒ†‘‡•–‹……‘’ƒ›ˆ”‘
ƒˆ‘”‡‹‰…‘’ƒ›ǡ‹™Š‹…Š•—…Š†‘‡•–‹……‘’ƒ›Šƒ•ʹ͸Ψ‘”‘”‡‡“—‹–›•Šƒ”‡Š‘Ž†‹‰ǡ‹•–ƒšƒ„Ž‡ƒ–ƒ”ƒ–‡‘ˆ
ͳͷΨ’Ž—•—”…Šƒ”‰‡ƒ†‡ƒŽ–Šƒ††—…ƒ–‹‘‡••—†‡”‡…–‹‘ͳͳͷǤ—…Š–ƒš•ŠƒŽŽ„‡…‘’—–‡†‘ƒ‰”‘••
„ƒ•‹•™‹–Š‘—–ƒŽŽ‘™‹‰†‡†—…–‹‘ˆ‘”ƒ›‡š’‡†‹–—”‡Ǥ
‹˜‹†‡†”‡…‡‹˜‡†„›ƒ†‘‡•–‹……‘’ƒ›ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›ǡ‹™Š‹…Š‡“—‹–›•Šƒ”‡Š‘Ž†‹‰‘ˆ•—…Š†‘‡•–‹…
…‘’ƒ›‹•Ž‡••–Šƒʹ͸Ψǡ‹•–ƒšƒ„Ž‡ƒ–‘”ƒŽ–ƒš”ƒ–‡ǤŠ‡†‘‡•–‹……‘’ƒ›…ƒ…Žƒ‹†‡†—…–‹‘ˆ‘”ƒ›‡š’‡•‡
‹…—””‡†„›‹–ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡ƒ”‹‰•—…Š†‹˜‹†‡†‹…‘‡Ǥ
ƒšƒ„‹Ž‹–›‘ˆ‹˜‹†‡†…‘‡‘ˆƒ†‹ƒ…‘’ƒ›ˆ”‘ƒ’‡…‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ›ȏ‡…–‹‘
ͳͳͷȐ
‹˜‹†‡†…‘‡‘ˆƒ†‹ƒ…‘’ƒ›‘—–‘ˆ†‹˜‹†‡††‡…Žƒ”‡†ǡ†‹•–”‹„—–‡†‘”’ƒ‹†„›ƒ•’‡…‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ›
‹•–ƒšƒ„Ž‡̷ͳͷΨǤ‘†‡†—…–‹‘‹”‡•’‡…–‘ˆƒ›‡š’‡†‹–—”‡‘”ƒŽŽ‘™ƒ…‡•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘–Š‡ƒ••‡••‡‡•—†‡”
ƒ›’”‘˜‹•‹‘‘ˆ–Š‹•…–‹…‘’—–‹‰‹–•‹…‘‡„›™ƒ›‘ˆ†‹˜‹†‡†•Ǥ
Dz’‡…‹ϐ‹‡† ‘”‡‹‰ ‘’ƒ›dz ‡ƒ• ƒ ˆ‘”‡‹‰ …‘’ƒ› ‹ ™Š‹…Š –Š‡ †‹ƒ …‘’ƒ› Š‘Ž†• ʹ͸Ψ ‘” ‘”‡ ‹
‘‹ƒŽ˜ƒŽ—‡‘ˆ–Š‡‡“—‹–›•Šƒ”‡…ƒ’‹–ƒŽ‘ˆ…‘’ƒ›Ǥ

ŽŽ—•–”ƒ–‹‘͸ǣ
–†Ǥƒ†‹ƒ‘’ƒ›”‡…‡‹˜‡††‹˜‹†‡†‘ˆ•ǤͳͷŽƒŠ•ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›‹™Š‹…Š‹–Š‘Ž†•ʹͺΨ‹
‘‹ƒŽ˜ƒŽ—‡‘ˆ–Š‡‡“—‹–›•Šƒ”‡…ƒ’‹–ƒŽ‘ˆ–Š‡…‘’ƒ›Ǥ–†Ǥ‹…—””‡†‡š’‡†‹–—”‡‘ˆ•ǤͲǤʹͷŽƒŠ•‘‡ƒ”‹‰
–Š‹•‹…‘‡Ǥšƒ‹‡–Š‡–ƒšƒ„‹Ž‹–›‘ˆ–Š‡†‹˜‹†‡†—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ
‘Ž—–‹‘
†‡”•‡…–‹‘ͳͳͷǡ†‹˜‹†‡†”‡…‡‹˜‡†„›ƒ†‹ƒ…‘’ƒ›ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›‹™Š‹…Š‹–Š‘Ž†•ʹ͸Ψ
‘”‘”‡‹‘‹ƒŽ˜ƒŽ—‡‘ˆ–Š‡‡“—‹–›•Šƒ”‡…ƒ’‹–ƒŽ‘ˆ–Š‡…‘’ƒ›ǡ™‘—Ž†„‡•—„Œ‡…––‘ƒ…‘…‡••‹‘ƒŽ–ƒš”ƒ–‡
‘ˆͳͷΨ’Ž—••—”…Šƒ”‰‡ƒ†…‡••ǡƒ•ƒ‰ƒ‹•––Š‡–ƒš”ƒ–‡‘ˆ͵ͲΨƒ’’Ž‹…ƒ„Ž‡–‘‘–Š‡”‹…‘‡‘ˆƒ†‘‡•–‹……‘’ƒ›Ǥ
Š‹•”ƒ–‡‘ˆͳͷΨ’Ž—••—”…Šƒ”‰‡ƒ†…‡••™‘—Ž†„‡ƒ’’Ž‹‡†‘‰”‘••†‹˜‹†‡†ǡ‹–Š‡•‡•‡ǡ–Šƒ–‘‡š’‡†‹–—”‡
™‘—Ž†„‡ƒŽŽ‘™ƒ„Ž‡‹”‡•’‡…–‘ˆ•—…Š†‹˜‹†‡†ǤŠ‡”‡ˆ‘”‡ǡ†‹˜‹†‡†‘ˆ•ǤͳͷŽƒŠ•”‡…‡‹˜‡†„›–†Ǥˆ”‘ƒ
ˆ‘”‡‹‰ …‘’ƒ›ǡ ‹ ™Š‹…Š ‹– Š‘Ž†• ʹͺΨ ‹ ‘‹ƒŽ ˜ƒŽ—‡ ‘ˆ ‡“—‹–› •Šƒ”‡ …ƒ’‹–ƒŽ ‘ˆ –Š‡ …‘’ƒ›ǡ ™‘—Ž† „‡
•—„Œ‡…––‘–ƒš̷ͳͷΨ—†‡”•‡…–‹‘ͳͳͷǤ—…Š†‹˜‹†‡†™‘—Ž†„‡–ƒšƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”
•‘—”…‡•dzǤ‘†‡†—…–‹‘‹•ƒŽŽ‘™ƒ„Ž‡‹”‡•’‡…–‘ˆ•ǤͲǤʹͷŽƒŠ••’‡–‘‡ƒ”‹‰–Š‹•‹…‘‡Ǥ
 Ͷ͹ͺ Lesson 8 Ȉ EP-TL

Š‡ ‹ƒ…‡ȋ‘ǤʹȌ…–ǡʹͲͳͶ‡š–‡†‡†–Š‡„‡‡ϐ‹–‘ˆ…‘…‡••‹‘ƒŽ”ƒ–‡‘ˆ–ƒšƒ–‹‘̷ͳͷΨ‘‰”‘••†‹˜‹†‡†
”‡…‡‹˜‡†„›†‹ƒ…‘’ƒ‹‡•ˆ”‘•’‡…‹ϐ‹‡†ˆ‘”‡‹‰…‘’ƒ‹‡•™‹–Š‘—–Ž‹‹–‹‰‹––‘ƒ’ƒ”–‹…—Žƒ”ƒ••‡••‡–
›‡ƒ”ǡ‹‘”†‡”–‘‡…‘—”ƒ‰‡†‹ƒ…‘’ƒ‹‡•–‘”‡’ƒ–”‹ƒ–‡ˆ‘”‡‹‰†‹˜‹†‡†•‹–‘–Š‡…‘—–”›Ǥ

ƒšƒ„‹Ž‹–›‘ˆ‹˜‹†‡†‹Šƒ†•‘ˆ‡…‹’‹‡–ǣ‡…–‹‘ͳͲȋ͵ͶȌǡ™Š‹…Š’”‘˜‹†‡•ƒ‡š‡’–‹‘–‘–Š‡•Šƒ”‡Š‘Ž†‡”•
‹”‡•’‡…–‘ˆ†‹˜‹†‡†‹…‘‡ǡ‹•™‹–Š†”ƒ™ˆ”‘••‡••‡–‡ƒ”ʹͲʹͳǦʹʹǤŠ—•ǡ†‹˜‹†‡†”‡…‡‹˜‡††—”‹‰–Š‡
ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͲǦʹͳƒ†‘™ƒ”†••ŠƒŽŽ‘™„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”•Ǥ‘•‡“—‡–Ž›ǡ‡…–‹‘
ͳͳͷ™Š‹…Š’”‘˜‹†‡•ˆ‘”–ƒšƒ„‹Ž‹–›‘ˆ†‹˜‹†‡†‹‡š…‡••‘ˆ•ǤͳͲŽƒŠŠƒ•‘”‡Ž‡˜ƒ…‡ƒ•–Š‡‡–‹”‡ƒ‘—–‘ˆ
†‹˜‹†‡†•ŠƒŽŽ„‡–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”Ǥ
Š‡ –ƒšƒ„‹Ž‹–› ‘ˆ †‹˜‹†‡† ƒ† –ƒš ”ƒ–‡ –Š‡”‡‘ •ŠƒŽŽ †‡’‡† —’‘ ƒ› ˆƒ…–‘”• Ž‹‡ ”‡•‹†‡–‹ƒŽ •–ƒ–—• ‘ˆ –Š‡
•Šƒ”‡Š‘Ž†‡”•ǡ ”‡Ž‡˜ƒ– Š‡ƒ† ‘ˆ ‹…‘‡Ǥ  …ƒ•‡ ‘ˆ ƒ ‘”‡•‹†‡– •Šƒ”‡Š‘Ž†‡”ǡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‘—„Ž‡ ƒšƒ–‹‘
˜‘‹†ƒ…‡ ‰”‡‡‡–• ȋ•Ȍ ƒ† —Ž–‹Žƒ–‡”ƒŽ •–”—‡– ȋȌ •ŠƒŽŽ ƒŽ•‘ …‘‡ ‹–‘ ’Žƒ›Ǥ ȏ• ƒ‡†‡† „›
‹ƒ…‡…–ǡʹͲʹͲȐ

ȏͳͳͷ

Ȑ
Š‡”‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡•‹…Ž—†‡•ƒ›‹…‘‡ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆ…ƒ”„‘…”‡†‹––Š‡•—…Š‹…‘‡
•ŠƒŽŽ„‡–ƒšƒ„Ž‡ƒ–…‘…‡••‹‘ƒŽ”ƒ–‡‘ˆͳͲΨȋΪΪȌ‘–Š‡‰”‘••ƒ‘—–‘ˆ•—…Š‹…‘‡Ǥ‘‡š’‡†‹–—”‡‘”
ƒŽŽ‘™ƒ…‡‹”‡•’‡…–‘ˆ•—…Š‹…‘‡•ŠƒŽŽ„‡ƒŽŽ‘™‡†Ǥ

Ǧ 
‡˜›‘ˆƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš̷ʹͲΨ‘—›„ƒ…‘ˆŠƒ”‡•ȏ‡…–‹‘ͳͳͷȐ
Š‡ ‹ƒ…‡ȋ‘ǤʹȌ…–ǡʹͲͳͻŠƒ•‡š–‡†‡†–Š‡Ž‡˜›‘ˆƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš‘„—›„ƒ…–‘ƒŽŽ…‘’ƒ‹‡•‹…Ž—†‹‰
Ž‹•–‡† …‘’ƒ‹‡• ™‹–Š ‡ˆˆ‡…– ˆ”‘ ͲͷǤͲ͹ǤʹͲͳͻǤ Š—•ǡ Š‡”‡ƒˆ–‡”ǡ  …ƒ•‡ ‘ˆ „—›„ƒ… ‘ˆ •Šƒ”‡• ȋ™Š‡–Š‡” Ž‹•–‡† ‘”
—Ž‹•–‡†Ȍ„›†‘‡•–‹……‘’ƒ‹‡•ǡƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš̷ʹͲΨȋ’Ž—••—”…Šƒ”‰‡̷ͳʹΨƒ†…‡••̷ͶΨȌ‹•Ž‡˜‹ƒ„Ž‡
‹–Š‡Šƒ†•‘ˆ–Š‡…‘’ƒ›Ǥ
‘•‡“—‡–Ž›ǡ–Š‡‹…‘‡ƒ”‹•‹‰–‘–Š‡•Šƒ”‡Š‘Ž†‡”•‹”‡•’‡…–‘ˆ•—…Š„—›„ƒ…‘ˆ•Šƒ”‡•„›–Š‡†‘‡•–‹……‘’ƒ›
™‘—Ž†„‡‡š‡’–—†‡”•‡…–‹‘ͳͲȋ͵ͶȌǡ•‹…‡–Š‡†‘‡•–‹……‘’ƒ›‹•Ž‹ƒ„Ž‡–‘’ƒ›ƒ††‹–‹‘ƒŽ‹…‘‡Ǧ–ƒš‘–Š‡
„—›„ƒ…‘ˆ•Šƒ”‡•Ǥ
–‡ƒ•ƒ††‹–‹‘ƒŽ‹…‘‡–ƒš‹•ƒ’’Ž‹…ƒ„Ž‡–‘ƒŽŽ…‘’ƒ‹‡•ǡ™Š‡–Š‡”Ž‹•–‡†‘”—Ž‹•–‡†ǡ™‹–Š‡ˆˆ‡…–ˆ”‘ͷ–Š —Ž›ǡ
ʹͲͳͻǡ‘™‡˜‡”ǡ–Š‡’”‘˜‹•‹‘‘ˆ–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›–‘•—…Š„—›‘ˆ•Šƒ”‡•„‡‹‰–Š‡•Šƒ”‡•Ž‹•–‡†‘
”‡…‘‰‹œ‡† •–‘… ‡š…Šƒ‰‡ ‹ ”‡•’‡…– ‘ˆ ™Š‹…Š ’—„Ž‹… ƒ‘—…‡‡– Šƒ• „‡‡ ƒ†‡ „‡ˆ‘”‡ ͷ–Š —Ž›ǡ ʹͲͳͻ ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆȋ—›ƒ…ˆ‡…—”‹–‹‡•Ȍ‡‰—Žƒ–‹‘ʹͲͳͺƒ†‡—†‡”–Š‡…–ǡͳͻͻʹƒ•
ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡Ǥ
Note: Prior to 05.07.2019, additional income-tax was attracted only in case of buy-back of unlisted shares by
domestic companies. Consequently, only holders of unlisted shares were entitled to exemption under section
10(34A).
ƒšƒ–‹‘’”‘˜‹•‹‘•‹”‡•’‡…–‘ˆ„—›„ƒ…‡ˆˆ‡…–‡†‘‘”ƒˆ–‡”ͷǤ͹ǤʹͲͳͻ

I II III 

—›„ƒ…‘ˆ•Šƒ”‡• —›„ƒ…‘ˆ•Šƒ”‡•„›ƒ —›„ƒ…‘ˆ•’‡…‹ϐ‹‡†

ƒšƒ„‹Ž‹–›‹–Š‡Šƒ†•‘ˆ ȋŽ‹•–‡†‘”—Ž‹•–‡†Ȍ„› …‘’ƒ›ǡ ‘–Š‡” –Šƒ ƒ •‡…—”‹–‹‡• „› ƒ›
†‘‡•–‹……‘’ƒ‹‡• †‘‡•–‹……‘’ƒ› …‘’ƒ›

—„Œ‡…––‘ƒ††‹–‹‘ƒŽ ‘– •—„Œ‡…– –‘ –ƒš ‹ –Š‡ ‘–•—„Œ‡…–– ‘ –ƒš‹–Š‡

‘’ƒ›
‹…‘‡Ǧ–ƒš̷ʹ͵Ǥʹͻ͸ΨǤ Šƒ†• ‘ˆ–Š‡…‘’ƒ›Ǥ Šƒ†•‘ˆ–Š‡…‘’ƒ›Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷ͹ͻ

Šƒ”‡Š‘Ž†‡”ȀŠ‘Ž†‡”ˆ …‘‡ƒ”‹•‹‰ –‘ …‘‡ƒ”‹•‹‰–‘ …‘‡ ƒ”‹•‹‰ –‘ Š‘Ž†‡”

•’‡…‹ϐ‹‡†•‡…—”‹–‹‡• •Šƒ”‡Š‘Ž†‡”•‡š‡’– •Šƒ”‡Š‘Ž†‡”–ƒšƒ„Ž‡ ‘ˆ•’‡…‹ϐ‹‡†•‡…—”‹–‹‡•
—†‡”•‡…–‹‘ͳͲȋ͵ͶȌ –ƒšƒ„Ž‡ƒ•…ƒ’‹–ƒŽ‰ƒ‹•
•…ƒ’‹–ƒŽ‰ƒ‹•—Ȁ•Ͷ͸ —Ȁ•Ͷ͸Ǥ

—…Š–ƒš•Š‘—Ž†„‡’ƒ‹†–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–™‹–Š‹ͳͶ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆƒ›
…‘•‹†‡”ƒ–‹‘ˆ‘”•—…Š„—›„ƒ…–‘–Š‡•Šƒ”‡Š‘Ž†‡”
‡ƒ‹‰‘ˆ„—›„ƒ…ƒ††‹•–”‹„—–‡†…‘‡ǣ
ͳǤ —›„ƒ…ǣ—”…Šƒ•‡„›ƒ…‘’ƒ›‘ˆ‹–•‘™•Šƒ”‡•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆƒ›Žƒ™ˆ‘”–Š‡
–‹‡„‡‹‰‹ˆ‘”…‡–‘…‘’ƒ‹‡•ȏ…Žƒ—•‡ȋ‹Ȍ‘ˆš’Žƒƒ–‹‘–‘•‡…–‹‘ͳͳͷȐ
ʹǤ ‹•–”‹„—–‡†…‘‡ǣŠ‡…‘•‹†‡”ƒ–‹‘’ƒ‹†„›–Š‡…‘’ƒ›‘„—›Ǧ„ƒ…‘ˆ•Šƒ”‡•ƒ•”‡†—…‡†„›–Š‡
ƒ‘—–™Š‹…Š™ƒ•”‡…‡‹˜‡†„›–Š‡…‘’ƒ›ˆ‘”‹••—‡‘ˆ•—…Š•Šƒ”‡•ǡ†‡–‡”‹‡†‹–Š‡ƒ‡”ƒ•ƒ›
„‡’”‡•…”‹„‡†ȏ…Žƒ—•‡ȋ‹‹Ȍ‘ˆš’Žƒƒ–‹‘–‘•‡…–‹‘ͳͳͷȐ
‹ƒ„‹Ž‹–›‘ˆ‹’Ž‡–‡”‡•–‘ƒ……‘—–‘ˆ‘Ǧ’ƒ›‡–‘ˆ–ƒš™‹–Š‹–‹‡ȏ‡…–‹‘ͳͳͷȐ
Š‡ ’”‹…‹’ƒŽ ‘ˆϐ‹…‡” ‘ˆ –Š‡ †‘‡•–‹… …‘’ƒ› ƒ† –Š‡ …‘’ƒ› ™‹ŽŽ „‡ Ž‹ƒ„Ž‡ –‘ ’ƒ› •‹’Ž‡ ‹–‡”‡•– ‘ •—…Š
ƒ††‹–‹‘ƒŽ–ƒš™Š‹…ŠŠƒ•‘–„‡‡’ƒ‹†‹–‹‡Ǥ
—…Š‹–‡”‡•–‹•Ž‡˜‹ƒ„Ž‡̷ͳΨˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆ–Š‡‘–Š‘•—…Šƒ‘—–‘ˆ–ƒš‘–’ƒ‹†Ȁ•Š‘”–’ƒ‹†ǡˆ‘”
–Š‡’‡”‹‘†„‡‰‹‹‰–Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ƒˆ–‡”–Š‡Žƒ•–†ƒ–‡‘™Š‹…Š•—…Š–ƒš™ƒ•’ƒ›ƒ„Ž‡ƒ†‡†‹‰™‹–Š–Š‡
†ƒ–‡™Š‡‹–™ƒ•ƒ…–—ƒŽŽ›’ƒ‹†Ǥ
••‡••‡‡‹‡ˆƒ—Ž–ȏ‡…–‹‘ͳͳͷȐ
Š‡’”‹…‹’ƒŽ‘ˆϐ‹…‡”‘ˆ–Š‡†‘‡•–‹……‘’ƒ›ƒ†–Š‡…‘’ƒ›™‘—Ž†„‡†‡‡‡†–‘„‡ƒƒ••‡••‡‡•‹†‡ˆƒ—Ž–‹ˆ
•—…Šƒ††‹–‹‘ƒŽ–ƒš‹•‘–’ƒ‹†–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–™‹–Š‹–Š‡•’‡…‹ϐ‹‡†–‹‡Ǥ•—…Šƒ…ƒ•‡
Š‡…‡ǡƒŽŽ’”‘˜‹•‹‘•‘ˆ…‘ŽŽ‡…–‹‘ƒ†”‡…‘˜‡”›‘ˆ–Š‡‹…‘‡–ƒš™‘—Ž†ƒ’’Ž›Ǥ
‘…”‡†‹–‘”†‡†—…–‹‘•ŠƒŽŽ„‡…Žƒ‹‡†
Š‡ƒ††‹–‹‘ƒŽ‹…‘‡–ƒš’ƒ›ƒ„Ž‡„›–Š‡…‘’ƒ›•ŠƒŽŽ„‡–Š‡ϐ‹ƒŽ’ƒ›‡–‘ˆ–ƒš‘•—…Š‹…‘‡Ǥ‘…”‡†‹–‘”
†‡†—…–‹‘•ŠƒŽŽ„‡…Žƒ‹‡†„›–Š‡…‘’ƒ›‘”ƒ›’‡”•‘‹”‡•’‡…–‘ˆ•—…Š–ƒš’ƒ‹†Ǥ

ƒ•‡–—†›
–†ǤǢƒ†‘‡•–‹……‘’ƒ›’—”…Šƒ•‡•‹–•‘™—Ž‹•–‡†•Šƒ”‡•ǡ‘ͳͶ–Š…–‘„‡”ǡʹͲʹͳǤŠ‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡
„—›„ƒ…ƒ‘—–‡†–‘ͷͲǡͲͲǡͲͲͲǡ™Š‹…Š™ƒ•’ƒ‹†–Š‡˜‡”›•ƒ‡†ƒ›ǤŠ‡ƒ‘—–”‡…‡‹˜‡†„›–Š‡…‘’ƒ›ʹ
›‡ƒ”•ƒ‰‘ǡˆ‘”–Š‡‹••—‡‘ˆ•—…Š•Šƒ”‡•™ƒ•ʹ͹ǡͲͲǡͲͲͲǤ
Š‡–ƒš‘•—…Š„—›„ƒ…™ƒ•†‡’‘•‹–‡†„›–Š‡…‘’ƒ›–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‘ʹ͹–Š ‡„”—ƒ”›ǡʹͲʹʹǤ
‘—ƒ”‡”‡“—‹”‡†–‘…‘’—–‡–Š‡–ƒšƒ†–Š‡‹–‡”‡•–’ƒ›ƒ„Ž‡Ǥ
‘Ž—–‹‘

ƒ”–‹…—Žƒ”• ‘—–ȋ•ǤȌ

—›ƒ…‘•‹†‡”ƒ–‹‘ ͷͲǡͲͲǡͲͲͲ

‡••ǣ ‘•–‘ˆŠƒ”‡• ʹ͹ǡͲͲǡͲͲͲ

‡–’ƒ‹†ˆ‘”„—›Ǧ„ƒ… ʹ͵ǡͲͲǡͲͲͲ

ƒš’ƒ›ƒ„Ž‡ Ͷǡ͸ͲǡͲͲͲ

Surcharge 55,200
 ͶͺͲ Lesson 8 Ȉ EP-TL

‡••ȋ‘ƒšΪȌ̷ͶΨ ʹͲǡ͸Ͳͺ

‘–ƒŽƒ††‹–‹‘ƒŽ–ƒš’ƒ›ƒ„Ž‡ ͷǡ͵ͷǡͺͲͺ

††‹–‹‘ƒŽƒšƒ›ƒ„Ž‡ȋ”‘—†‡†‘ˆˆȌ ͷǡ͵ͷǡͺͳͲ

–‡”‡•–’ƒ›ƒ„Ž‡ ʹͳǡͶ͵ʹ

‘–‡ǣŠ‡–ƒšŠƒ†–‘„‡†‡’‘•‹–‡†–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–™‹–Š‹ͳͶ†ƒ›•‘ˆ–Š‡’ƒ›‡–‘ˆ„—›Ǧ
„ƒ……‘•‹†‡”ƒ–‹‘ǡ‹Ǥ‡Ǥǡ‘‘”„‡ˆ‘”‡ʹͺ–Š…–‘„‡”ǡʹͲʹͳǤ‘™‡˜‡”ǡ–Š‡–ƒš™ƒ•†‡’‘•‹–‡†‘ʹ͹–Š ‡„”—ƒ”›ǡʹͲʹʹ
ƒ†Š‡…‡‹–‡”‡•–ˆ‘”Ͷ‘–Š•̷ͳΨ’‡”‘–Š‹•ƒ’’Ž‹…ƒ„Ž‡Ǥ

   



Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ƒ’’Ž›–‘ƒˆ‘”‡‹‰…‘’ƒ›‡‰ƒ‰‡†‹–Š‡„ƒ‹‰„—•‹‡••‹†‹ƒǡ–Š”‘—‰Š‹–•
„”ƒ…Š•‹–—ƒ–‡†‹†‹ƒǡƒ†™Š‹…Š‹•…‘˜‡”–‡†‹–‘ƒ†‹ƒ—„•‹†‹ƒ”›‘’ƒ›‹ƒ……‘”†ƒ…‡™‹–Š–Š‡•…Š‡‡
ˆ”ƒ‡†„›Ǥ
ˆ–Š‡…‘†‹–‹‘•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ”‡•ƒ–‹•ϐ‹‡†ǡ–Š‡–Š‡ƒ’‹–ƒŽ
ƒ‹•ƒ”‹•‹‰ˆ”‘•—…Š…‘˜‡”•‹‘
™‘—Ž†‘–ƒ––”ƒ…–ƒ›–ƒš‹–Š‡ƒ••‡••‡–›‡ƒ””‡Žƒ–‹‰–‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š…‘˜‡”•‹‘–ƒ‡•’Žƒ…‡Ǥ
‘™‡˜‡”ǡ‹ˆ–Š‡…‘†‹–‹‘•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ”‡‘–…‘’Ž‹‡†™‹–Šǡ–Š‡ǡƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•
…–™‘—Ž†ƒ’’Ž›–‘„‘–Š–Š‡ ‘”‡‹‰‘’ƒ›ƒ†–Š‡†‹ƒ—„•‹†‹ƒ”›ǡ™‹–Š‘—–ƒ›„‡‡ϐ‹–Ȁ‡š‡’–‹‘Ȁ”‡Ž‹‡ˆ
—†‡”–Š‡…–Ǥ
††‹–‹‘ƒŽŽ›ǡ‹ˆ–Š‡”‡Šƒ•„‡‡ƒ›„‡‡ϐ‹–ǡ”‡Ž‹‡ˆ‘”‡š‡’–‹‘‰”ƒ–‡†–‘–Š‡ ‘”‡‹‰—„•‹†‹ƒ”›‘”†‹ƒ—„•‹†‹ƒ”›ǡ
‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡƒ†–Š‡”‡ƒˆ–‡”ǡ–Š‡”‡‹•ƒˆƒ‹Ž—”‡–‘…‘’Ž›™‹–Š–Š‡…‘†‹–‹‘••‘‘–‹ϐ‹‡†ǡ–Š‡•—…Š„‡‡ϐ‹–Ȁ
‡š‡’–‹‘Ȁ”‡Ž‹‡ˆ™‘—Ž†„‡†‡‡‡†–‘Šƒ˜‡„‡‡™”‘‰Ž›ƒŽŽ‘™‡†Ǥ•—…Šƒ…ƒ•‡ǡ–Š‡••‡••‹‰ˆϐ‹…‡”‹•ƒŽŽ‘™‡†
–‘ ”‡…‘’—–‡ –Š‡ ‹…‘‡ ‘ˆ –Š‡ ƒ••‡••‡‡• ˆ‘” –Š‡ •ƒ‹† ”‡˜‹‘—• ‡ƒ” ƒ† ƒ‡ –Š‡ ‡…‡••ƒ”› ƒ‡†‡–Ǥ Š‡
’”‘˜‹•‹‘•‘ˆ”‡…–‹ϐ‹…ƒ–‹‘•ŠƒŽŽƒ’’Ž›ƒ†–Š‡ˆ‘—”Ǧ›‡ƒ”’‡”‹‘†™‹–Š‹™Š‹…Š•—…Š”‡…–‹ϐ‹…ƒ–‹‘—•–„‡ƒ†‡ǡŠƒ•–‘
„‡”‡…‘‡†ˆ”‘–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ˆƒ‹Ž—”‡–‘…‘’Ž›™‹–Š–Š‡…‘†‹–‹‘•–ƒ‡’Žƒ…‡Ǥ

  

‡…–‹‘ͳͳͷȋʹȌ
›ƒ‘—–‘ˆ‹…‘‡†‹•–”‹„—–‡†„›ƒ—–—ƒŽ —†ǡ–‘‹–•—‹–Š‘Ž†‡”•ƒˆ–‡”ͳ•–’”‹ŽǡʹͲͲ͵„—–‘‘”„‡ˆ‘”‡͵ͳ
ƒ”…Šǡ ʹͲʹͲ •ŠƒŽŽ „‡ …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ƒ† –Š‡ —–—ƒŽ —† „‡…‘‡• Ž‹ƒ„Ž‡ –‘ ’ƒ› ƒ††‹–‹‘ƒŽ –ƒš ‘ •—…Š
†‹•–”‹„—–‹‘Ǥ‡…–‹‘ͳͲȋ͵ͷȌǡ™Š‹…Š’”‘˜‹†‡•ƒ‡š‡’–‹‘–‘–Š‡—‹–Š‘Ž†‡”‹”‡•’‡…–‘ˆ‹…‘‡†‹•–”‹„—–‡†„›ƒ
—–—ƒŽ —†ǡ‹•™‹–Š†”ƒ™ˆ”‘••‡••‡–‡ƒ”ʹͲʹͳǦʹͲǤŠ—•ǡƒ›‹…‘‡†‹•–”‹„—–‡†„›ƒ—–—ƒŽ —†”‡…‡‹˜‡†
†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͲǦʹͳƒ†‘™ƒ”†••ŠƒŽŽ‘–„‡–ƒš‡†—†‡”•‡…–‹‘ͳͳͷƒ†•ŠƒŽŽ‘™„‡–ƒšƒ„Ž‡‹
–Š‡Šƒ†•‘ˆ–Š‡‹–Š‘Ž†‡”•Ǥȏ•ƒ‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
‡…–‹‘ͳͳͷ
Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–•‘ˆ–Š‡‹…‘‡†‹•–”‹„—–‡†„›–Š‡—–—ƒŽ —†ǡ™‹ŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›
•‹’Ž‡‹–‡”‡•–‘•—…Šƒ††‹–‹‘ƒŽ–ƒš™Š‹…ŠŠƒ•‘–„‡‡’ƒ‹†‹–‹‡Ǥ
—…Š‹–‡”‡•–‹•Ž‡˜‹ƒ„Ž‡̷ͳΨˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆ–Š‡‘–Š‘•—…Šƒ‘—–‘ˆ–ƒš‘–’ƒ‹†Ȁ•Š‘”–’ƒ‹†ǡˆ‘”
–Š‡’‡”‹‘†„‡‰‹‹‰–Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ƒˆ–‡”–Š‡Žƒ•–†ƒ–‡‘™Š‹…Š•—…Š–ƒš™ƒ•’ƒ›ƒ„Ž‡ƒ†‡†‹‰™‹–Š–Š‡
†ƒ–‡™Š‡‹–™ƒ•ƒ…–—ƒŽŽ›’ƒ‹†Ǥ
‡…–‹‘ͳͳͷ
Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–•‘ˆ–Š‡‹…‘‡†‹•–”‹„—–‡†„›–Š‡—–—ƒŽ —†ǡ™‹ŽŽ„‡†‡‡‡†–‘
„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–‹ˆ•—…Šƒ††‹–‹‘ƒŽ–ƒš‹•‘–’ƒ‹†–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ•—…Šƒ…ƒ•‡
Š‡…‡ǡƒŽŽ’”‘˜‹•‹‘•‘ˆ…‘ŽŽ‡…–‹‘ƒ†”‡…‘˜‡”›‘ˆ–Š‡–ƒš™‘—Ž†ƒ’’Ž›Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͺͳ



Š‡”ƒ’‹†‰”‘™–Š‘ˆ–Š‡‹ˆ‘”ƒ–‹‘ƒ†…‘—‹…ƒ–‹‘–‡…Š‘Ž‘‰›Šƒ•”‡•—Ž–‡†‹•—„•–ƒ–‹ƒŽ‡š’ƒ•‹‘‘ˆ–Š‡
•—’’Ž›ƒ†’”‘…—”‡‡–‘ˆ†‹‰‹–ƒŽ‰‘‘†•ƒ†•‡”˜‹…‡•‰Ž‘„ƒŽŽ›ǡ‹…Ž—†‹‰†‹ƒǡƒ†–Š‡†‹‰‹–ƒŽ‡…‘‘›‹•‰”‘™‹‰
ƒ–ƒ’’”‘š‹ƒ–‡Ž›ͳͲΨ’‡”ƒ—ǡˆƒ•–‡”–Šƒ–Š‡‡…‘‘›ƒ•ƒ™Š‘Ž‡Ǥ
Š‡•‡‡™„—•‹‡••‘†‡Ž•Šƒ˜‡„”‘—‰Š–ƒŽ‘‰™‹–Š–Š‡•‡Ž˜‡•ǡ…ŠƒŽŽ‡‰‡•ǤŠ‡–›’‹…ƒŽ‹••—‡•Ȁ…‘…‡”•ƒ”‘—†
–ƒšƒ–‹‘˜‹•ǦǦ˜‹•‡Ǧ…‘‡”…‡ƒ”‡ǣ
ƒȌ †‹ˆϐ‹…—Ž–› ‹ …Šƒ”ƒ…–‡”‹œ‹‰ –Š‡ ƒ–—”‡ ‘ˆ ’ƒ›‡– ƒ† ‡•–ƒ„Ž‹•Š‹‰ ƒ Ž‹ Ȁ ‡š—• „‡–™‡‡ –ƒšƒ„Ž‡
–”ƒ•ƒ…–‹‘ǡƒ…–‹˜‹–›ƒ†–ƒš‹‰Œ—”‹•†‹…–‹‘Ǥ
„Ȍ –Š‡†‹ˆϐ‹…—Ž–›‹Ž‘…ƒ–‹‰–Š‡–”ƒ•ƒ…–‹‘ǡƒ…–‹˜‹–›ƒ†‹†‡–‹ˆ›‹‰–Š‡–ƒš’ƒ›‡”Ǥ
Š‡”‰ƒ‹œƒ–‹‘ˆ‘”…‘‘‹…‘‘’‡”ƒ–‹‘ƒ†‡˜‡Ž‘’‡–ȋȌǡŠƒ•”‡…‘‡†‡†•‡˜‡”ƒŽ‘’–‹‘•–‘–ƒ…Ž‡
–Š‡•‡…ŠƒŽŽ‡‰‡•Ǥ
‘”†‡”–‘ƒ††”‡••–Š‡•‡…ŠƒŽŽ‡‰‡•ǡŠƒ’–‡”‘ˆ–Š‡ ‹ƒ…‡…–ǡʹͲͳ͸–‹–Ž‡†Dz“—ƒŽ‹œƒ–‹‘‡˜›dz’”‘˜‹†‡•ˆ‘”
ƒ‡“—ƒŽ‹œƒ–‹‘Ž‡˜›‘ˆ͸Ψ‘–Š‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”•’‡…‹ϐ‹‡†•‡”˜‹…‡•ǡ”‡…‡‹˜‡†Ȁ”‡…‡‹˜ƒ„Ž‡„›ƒ‘Ǧ
”‡•‹†‡–ǡ ‘– Šƒ˜‹‰ ’‡”ƒ‡– ‡•–ƒ„Ž‹•Š‡– ‹ †‹ƒǡ ˆ”‘ ƒ ”‡•‹†‡– ‹ †‹ƒǡ ™Š‘ …ƒ””‹‡• ‘—– „—•‹‡•• Ȁ
’”‘ˆ‡••‹‘ǡ‘”ˆ”‘ƒ‘Ǧ”‡•‹†‡–™Š‘Šƒ•ƒ’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǤ
•ƒ‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲǡƒ‡“—ƒŽ‹œƒ–‹‘Ž‡˜›‘ˆʹΨ•ŠƒŽŽ„‡…Šƒ”‰‡†‘‘”ƒˆ–‡”ͲͳǤͲͶǤʹͲʹͲ‘–Š‡
…‘•‹†‡”ƒ–‹‘„›ƒ‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”ˆ”‘‡Ǧ…‘‡”…‡•—’’Ž›ƒ†‡‘”’”‘˜‹†‡†„›‹–ǣ
ƒǤ –‘ƒ’‡”•‘”‡•‹†‡–‹†‹ƒǢ
„Ǥ –‘ƒ‘Ǧ”‡•‹†‡–‹–Š‡•’‡…‹ϐ‹‡†…‹”…—•–ƒ…‡•ƒ•”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋ͵ȌǢ
…Ǥ –‘ƒ’‡”•‘™Š‘„—›••—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š—•‹‰‹–‡”‡–’”‘–‘…‘Žƒ††”‡••Ž‘…ƒ–‡†‹†‹ƒǤ
Š‡”‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”‡ƒ•ƒ‘Ǧ”‡•‹†‡–™Š‘‘™•ǡ‘’‡”ƒ–‡•‘”ƒƒ‰‡•†‹‰‹–ƒŽ‘”‡Ž‡…–”‘‹…ˆƒ…‹Ž‹–›
‘”’Žƒ–ˆ‘”ˆ‘”‘Ž‹‡•ƒŽ‡‘ˆ‰‘‘†•‘”‘Ž‹‡’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•‘”„‘–ŠǤ
†‡Ǧ…‘‡”…‡•—’’Ž›‘”•‡”˜‹…‡•‡ƒ•Ǧ
ȋ‹Ȍ ‘Ž‹‡•ƒŽ‡‘ˆ‰‘‘†•‘™‡†„›–Š‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”Ǣ
ȋ‹‹Ȍ ‘Ž‹‡’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•’”‘˜‹†‡†„›–Š‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”Ǣ
ȋ‹‹‹Ȍ ‘Ž‹‡•ƒŽ‡‘ˆ‰‘‘†•‘”’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•‘”„‘–Šǡˆƒ…‹Ž‹–ƒ–‡†„›–Š‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”Ǣ
ȋ‹˜Ȍ ƒ›…‘„‹ƒ–‹‘‘ˆƒ…–‹˜‹–‹‡•Ž‹•–‡†‹…Žƒ—•‡ȋ‹Ȍǡȋ‹‹Ȍ‘”…Žƒ—•‡ȋ‹‹‹ȌǤ
Š‡‡“—ƒŽ‹•ƒ–‹‘Ž‡˜›•ŠƒŽŽ‘–„‡…Šƒ”‰‡†‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ƒǤ ™Š‡”‡–Š‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”ƒ‹‰‘”’”‘˜‹†‹‰‘”ˆƒ…‹Ž‹–ƒ–‹‰‡Ǧ…‘‡”…‡•—’’Ž›‘”•‡”˜‹…‡•Šƒ•ƒ
’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒƒ†•—…Š‡Ǧ…‘‡”…‡•—’’Ž›‘”•‡”˜‹…‡•‹•‡ˆˆ‡…–‹˜‡Ž›…‘‡…–‡†™‹–Š
•—…Š’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–Ǣ
„Ǥ ™Š‡”‡–Š‡‡“—ƒŽ‹•ƒ–‹‘Ž‡˜›‹•Ž‡˜‹ƒ„Ž‡̷͸Ψ—†‡”…‘•‹†‡”ƒ–‹‘ˆ‘”•’‡…‹ϐ‹‡†•‡”˜‹…‡•Ǣ
…Ǥ •ƒŽ‡•ǡ–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‘ˆ–Š‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”ˆ”‘–Š‡‡Ǧ…‘‡”…‡
•—’’Ž›‘”•‡”˜‹…‡•ƒ†‡‘”’”‘˜‹†‡†‘”ˆƒ…‹Ž‹–ƒ–‡†‹•Ž‡••–Šƒʹ”‘”‡”—’‡‡•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
Š‡‡“—ƒŽ‹•ƒ–‹‘Ž‡˜›ǡ•ŠƒŽŽ„‡’ƒ‹†„›‡˜‡”›‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ‘”–Š‡
“—ƒ”–‡”‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‡†‹‰™‹–Š–Š‡†ƒ–‡•’‡…‹ϐ‹‡†‹…‘Ž—ȋʹȌ‘ˆ–Š‡ƒ„Ž‡„‡Ž‘™„›–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†
‹–Š‡…‘””‡•’‘†‹‰‡–”›‹…‘Ž—ȋ͵Ȍ‘ˆ–Š‡•ƒ‹†ƒ„Ž‡ǣ

Ǥ‘Ǥ ƒ–‡‘ˆ‡†‹‰‘ˆ–Š‡“—ƒ”–‡”‘ˆϐ‹ƒ…‹ƒŽ›‡ƒ” —‡†ƒ–‡‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ͳ ͵Ͳ–Š —‡ ͹–Š —Ž›
ʹ ͵Ͳ–Š‡’–‡„‡” ͹–Š…–‘„‡”
͵ ͵ͳ•–‡…‡„‡” ͹–Š ƒ—ƒ”›
Ͷ ͵ͳ•–ƒ”…Š ͵ͳ•–ƒ”…Š
 Ͷͺʹ Lesson 8 Ȉ EP-TL

‡ˆ‡”–‘–Š‡–ƒ„Ž‡„‡Ž‘™–‘—†‡”•–ƒ†–Š‡˜ƒ”‹‘—•’ƒ”ƒ‡–‡”•ƒ†ƒ•’‡…–•‹˜‘Ž˜‡†Ǥ

‡…–‹‘ —„Œ‡…– ”‘˜‹•‹‘•

ͳ͸͸ ‡”•‘ ”‡•’‘•‹„Ž‡ ˆ‘” ˜‡”›’‡”•‘„‡‹‰ƒ”‡•‹†‡–‹†‹ƒǡ™Š‘…ƒ””‹‡•‘—–„—•‹‡••Ȁ’”‘ˆ‡••‹‘ǡ‘”
†‡†—…–‹‘‘ˆ‡“—ƒŽ‹œƒ–‹‘Ž‡˜› ƒ ‘Ǧ”‡•‹†‡– ™Š‘ Šƒ• ƒ ’‡”ƒ‡– ‡•–ƒ„Ž‹•Š‡– ‹ †‹ƒ •ŠƒŽŽ †‡†—…–
‡“—ƒŽ‹œƒ–‹‘Ž‡˜›ˆ”‘–Š‡ƒ‘—–’ƒ‹†Ȁ’ƒ›ƒ„Ž‡–‘ƒ‘Ǧ”‡•‹†‡–‹”‡•’‡…–‘ˆ
–Š‡•’‡…‹ϐ‹‡†•‡”˜‹…‡Ǥ
ƒ–‡ ͸Ψ‘ˆ–Š‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”ƒ•’‡…‹ϐ‹‡†•‡”˜‹…‡ǡ”‡…‡‹˜‡†Ȁ”‡…‡‹˜ƒ„Ž‡
„›ƒ‘Ǧ”‡•‹†‡–ǡ‘–Šƒ˜‹‰’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǡˆ”‘ƒ”‡•‹†‡–
‹†‹ƒǡ™Š‘…ƒ””‹‡•‘—–„—•‹‡••Ȁ’”‘ˆ‡••‹‘ǡ‘”ˆ”‘ƒ‘Ǧ”‡•‹†‡–™Š‘Šƒ•
ƒ’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǡ”‘—†‡†‘ˆˆ–‘–Š‡‡ƒ”‡•––‡”—’‡‡•Ǥ

Š”‡•Š‘Ž† “—ƒŽ‹œƒ–‹‘‡˜›‹•†‡†—…–‹„Ž‡‹ˆ–Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”ƒ
‹‡Ǧ’‡”‹‘†
‘˜‡”‡–„›–Š‡͹–Š‘ˆˆ‘ŽŽ‘™‹‰
‘•‡“—‡…‡‘ˆˆƒ‹Ž—”‡
‘˜‡”‡–ǡ –Š‡ “—ƒŽ‹œƒ–‹‘ ‡˜› „› ͹–Š ‘ˆ –Š‡
ͳ͸͹ —”‹•Š‹‰–Š‡•–ƒ–‡‡–
—‡‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰
•’‡…‹ϐ‹‡†•‡”˜‹…‡‹ƒ’”‡˜‹‘—•›‡ƒ”‡š…‡‡†•ͳͲͲǡͲͲͲǤ
Š‡“—ƒŽ‹œƒ–‹‘‡˜›•‘†‡†—…–‡††—”‹‰ƒ›…ƒŽ‡†ƒ”‘–Š•ŠƒŽŽ„‡’ƒ‹†„›
‡˜‡”›ƒ••‡••‡‡–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘–ŠǤ
›ƒ••‡••‡‡™Š‘ˆƒ‹Ž•–‘†‡†—…–ǡ™‘—Ž†ƒ›™ƒ›…‘–‹—‡–‘„‡Ž‹ƒ„Ž‡–‘’ƒ›–‘
–Š‡ …”‡†‹– ‘ˆ –Š‡ ‡–”ƒŽ
ˆ‘ŽŽ‘™‹‰‘–ŠǤ
˜‡”›ƒ••‡••‡‡•ŠƒŽŽǡ™‹–Š‹–Š‡–‹‡’”‡•…”‹„‡†ƒˆ–‡”–Š‡‡†‘ˆ–Š‡ ǡ•—„‹–ƒ
•–ƒ–‡‡–‹–Š‡’”‡•…”‹„‡† ‘”͓ͳǡ‘‘”„›͵Ͳ–Š
–Š‡ ǡ•‡––‹‰ˆ‘”–ŠƒŽŽ†‡–ƒ‹Ž•ˆ‘”•’‡…‹ϐ‹‡†•‡”˜‹…‡•’‡”–ƒ‹‹‰–‘–Šƒ– Ǥ

‡˜‹•‡†–ƒ–‡‡– ˆ –Š‡ ƒ••‡••‡‡ ‘–‹…‡• ‘‹••‹‘• Ȁ ‡””‘”• Ȁ ™”‘‰ †‡–ƒ‹Ž•ǡ Š‡ …ƒ ˆ—”‹•Š ƒ
”‡˜‹•‡†•–ƒ–‡‡–„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆʹ›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ ‹™Š‹…Š
–Š‡•’‡…‹ϐ‹‡†•‡”˜‹…‡™ƒ•’”‘˜‹†‡†Ǥ
‘–‹…‡ „› –Š‡ ••‡••‹‰ Š‡”‡ƒ›ƒ••‡••‡‡Šƒ•ˆƒ‹Ž‡†–‘ϐ‹Ž‡–Š‡•–ƒ–‡‡–™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡ǡ
ˆϐ‹…‡”ȋǤǤȌ –Š‡ǤǤ‹•‡’‘™‡”‡†–‘‹••—‡ƒ‘–‹…‡…ƒŽŽ‹‰ˆ‘”–Š‡•–ƒ–‡‡–ƒ†‹™Š‹…Š
…ƒ•‡–Š‡•–ƒ–‡‡–Šƒ•–‘„‡ˆ—”‹•Š‡†™‹–Š‹͵Ͳ†ƒ›•‘ˆ†ƒ–‡‘ˆ•‡”˜‹‰‘ˆ•—…Š
‘–‹…‡Ǥ
ͳ͸ͺ ”‘…‡••‹‰‘ˆ–Š‡–ƒ–‡‡– Š‡•–ƒ–‡‡–•ŠƒŽŽ„‡’”‘…‡••‡†ǡƒ†–Š‡ƒ‘—–’ƒ›ƒ„Ž‡ƒŽ‘‰™‹–Š‹–‡”‡•–‹ˆ
ƒ›ǡ•ŠƒŽŽ„‡…‘’—–‡†–‘™ƒ”†•–Š‡“—ƒŽ‹œƒ–‹‘‡˜›ǤŠ‡‡–ƒ‘—–’ƒ›ƒ„Ž‡
„›‘””‡ˆ—†ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡Šƒ•–‘„‡™‘”‡†‘—–ƒ†ƒ‹–‹ƒ–‹‘—•–„‡
•‡”˜‡†—’‘–Š‡ƒ••‡••‡‡Ǥ‘™‡˜‡”ǡ‘‹–‹ƒ–‹‘‹•–‘„‡•‡–ƒˆ–‡”–Š‡‡š’‹”›
‘ˆ‘‡›‡ƒ”ǡˆ”‘–Š‡‡†‘ˆ–Š‡ ‹™Š‹…Š–Š‡•–ƒ–‡‡–‹•ˆ—”‹•Š‡†Ǥ
ͳ͸ͻ ‡…–‹ϐ‹…ƒ–‹‘‘ˆ‹•–ƒ‡ ‹–Šƒ˜‹‡™–‘”‡…–‹ˆ›‹‰ƒ‹•–ƒ‡ƒ’’ƒ”‡–‘–Š‡”‡…‘”†ǡ–Š‡ǤǤƒ›ƒ‡†
–Š‡‹–‹ƒ–‹‘ƒ†•—…Š‹–‹ƒ–‹‘—•–„‡ƒ‡†‡†™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡
‡†‘ˆ–Š‡ ‹™Š‹…Š–Š‡‹–‹ƒ–‹‘•‘—‰Š––‘„‡ƒ‡†‡†™ƒ•‹••—‡†Ǥ

ͳ͹Ͳ –‡”‡•–‘†‡Žƒ›‡†’ƒ›‡–• ˜‡”›ƒ••‡••‡‡™Š‘ˆƒ‹Ž•–‘†‡’‘•‹––‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ

‘˜‡”‡–ǡ–Š‡
ƒ’’Ž‹…ƒ„Ž‡ “—ƒŽ‹œƒ–‹‘ ‡˜›ǡ ™‹–Š‹ ͹–Š ‘ˆ –Š‡ ‘–Š ˆ‘ŽŽ‘™‹‰ –Š‡ ‘–Š ‹
™Š‹…Š‹–™ƒ•†‡†—…–‡†ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›–‡”‡•–̷ͳΨ‘ˆ•—…Š
Ž‡˜›ˆ‘”‡˜‡”›‘–ŠȀ’ƒ”–‘ˆ–Š‡‘–Š‘ˆ†‡Žƒ›Ǥ
ͳ͹ͳ ‡ƒŽ–› ˆ –Š‡ ƒ••‡••‡‡ ˆƒ‹Ž• –‘ †‡†—…– –Š‡ “—ƒŽ‹œƒ–‹‘ ‡˜›ǡ ‹ ƒ††‹–‹‘ –‘ –Š‡
“—ƒŽ‹œƒ–‹‘ ‡˜› ƒ† –‡”‡•–ǡ ’‡ƒŽ–› ‡“—ƒŽ –‘ –Š‡ ƒ‘—– ‘ˆ “—ƒŽ‹œƒ–‹‘
‡˜›–Šƒ–Š‡ˆƒ‹Ž‡†–‘†‡†—…–™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡Ǥ
ˆ–Š‡ƒ••‡••‡‡ˆƒ‹Ž•–‘”‡‹––Š‡“—ƒŽ‹œƒ–‹‘‡˜›•‘†‡†—…–‡†–‘–Š‡…”‡†‹–‘ˆ
–Š‡
‘˜‡”‡–„›͹–Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‘–Šǡƒ’‡ƒŽ–›‘ˆͳͲͲͲ’‡”†ƒ›
™‘—Ž†„‡Ž‡˜‹ƒ„Ž‡ǡ•—„Œ‡…––‘ƒƒš‹—‘ˆ–Š‡‡“—ƒŽ‹œƒ–‹‘Ž‡˜›–Šƒ–Š‡™ƒ•–‘
†‡†—…–Ǥ
172 ‡ƒŽ–›ˆ‘”†‡Žƒ›‹ ˆ–Š‡ƒ••‡••‡‡ˆƒ‹Ž•–‘ˆ—”‹•Š–Š‡•–ƒ–‡‡–™‹–Š‹͵Ͳ–Š —‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ ǡ
ˆ—”‹•Š‹‰–Š‡•–ƒ–‡‡– ‘”™‹–Š‹͵Ͳ†ƒ›•‘ˆ–Š‡‘–‹…‡•‡”˜‡†„›–Š‡ǤǤǡƒ’‡ƒŽ–›‘ˆͳͲͲ’‡”†ƒ›
‹•Ž‡˜‹ƒ„Ž‡‘–Š‡ƒ••‡••‡‡Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͺ͵

ƒ••‡••‡‡ƒ‰‰”‹‡˜‡†„›ƒ‘”†‡”‘ˆ–Š‡ǤǤǡƒ›ƒ’’‡ƒŽ–‘–Š‡‘‹••‹‘‡”‘ˆ…‘‡ƒšȋ’’‡ƒŽ•Ȍ™‹–Š‹͵Ͳ
†ƒ›•‘ˆ”‡…‡‹’–‘ˆ†ƒ–‡‘ˆ‘”†‡”Ǥƒ••‡••‡‡ƒ‰‰”‹‡˜‡†„›ƒ‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”ǡƒ›ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡
”‹„—ƒŽ™‹–Š‹͸Ͳ†ƒ›•‘ˆ”‡…‡‹’–‘ˆ†ƒ–‡‘ˆ‘”†‡”Ǥ

ŽŽ—•–”ƒ–‹‘͹ǣ
 –†Ǥ‹•‹–Š‡„—•‹‡••‘ˆƒ—ˆƒ…–—”‡ƒ†•ƒŽ‡‘ˆˆ‘”ƒŽƒ’’ƒ”‡Ž•ƒ†‹‘”†‡”–‘‡š’ƒ†‹–•ˆ‘‘–’”‹–•
‰Ž‘„ƒŽŽ›ǡŠƒ•Žƒ—…Š‡†ƒƒ••‹˜‡‘Ž‹‡…ƒ’ƒ‹‰Ǥ ‘”–Š‡’—”’‘•‡‘ˆ–Š‡‘Ž‹‡ƒ†˜‡”–‹•‡‡–•ǡ‹–—–‹Ž‹œ‡†–Š‡
•‡”˜‹…‡•‘ˆ
–†ǡ„ƒ•‡†‘—–‘ˆ‹‰ƒ’‘”‡Ǥ—”‹‰–Š‡ǡ –†Ǥ’ƒ‹†ƒ…‘•‹†‡”ƒ–‹‘‘ˆʹͲǡͲͲǡͲͲͲ–‘

–†Ǥˆ‘”•—…Š•‡”˜‹…‡•Ǥ
–ƒ‹Ž–Š‡‹’Ž‹…ƒ–‹‘•‹ˆǣ
ƒȌ
–†ǤŠƒ•‘’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǤ
„Ȍ
–†ǤŠƒ•ƒ’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǤ
‘Ž—–‹‘ǣ
ƒȌ …ƒ•‡
–†ǤŠƒ•‘’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǡ–Š‡…‘•‹†‡”ƒ–‹‘’ƒ‹†–‘
–†Ǥ„› 
–†Ǥ™‘—Ž†ƒ––”ƒ…–“—ƒŽ‹œƒ–‹‘‡˜›–‘„‡†‡†—…–‡†̷͸ΨǤ‡…‡ǡͳʹͲǡͲͲͲŠƒ•–‘„‡†‡†—…–‡†„›
  –†Ǥƒ††‡’‘•‹–‡†–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–™‹–Š‹͹–Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‘–ŠǤ
‘Ǧ†‡†—…–‹‘‘ˆ‡“—ƒŽ‹œƒ–‹‘Ž‡˜›™‘—Ž†ƒ––”ƒ…–ƒ†‹•ƒŽŽ‘™ƒ…‡—Ȁ•ͶͲȋƒȌȋ‹„Ȍ‘ˆͳͲͲΨ‘ˆ–Š‡ƒ‘—–
’ƒ‹†ǡ™Š‹Ž‡…‘’—–‹‰„—•‹‡••‹…‘‡Ǥ
„Ȍ …ƒ•‡
–†ǤŠƒ•ƒ’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǡ“—ƒŽ‹œƒ–‹‘‡˜›™‘—Ž†‘–„‡ƒ––”ƒ…–‡†Ǥ
Š‡”‡ˆ‘”‡ –†Ǥ‡‡†‘–†‡†—…–“—ƒŽ‹œƒ–‹‘‡˜›ˆ”‘–Š‡’ƒ›‡–‘ˆ…‘•‹†‡”ƒ–‹‘–‘
–†Ǥ
‘™‡˜‡”ǡ–ƒšŠƒ•–‘„‡†‡†—…–‡†—Ȁ•ͳͻͷ‹”‡•’‡…–‘ˆ•—…Š’ƒ›‡–•–‘™ƒ”†•Ǥ‘Ǧ†‡†—…–‹‘‘ˆ
™‘—Ž†ƒ––”ƒ…–ƒ†‹•ƒŽŽ‘™ƒ…‡—Ȁ•ͶͲȋƒȌȋ‹Ȍ‘ˆͳͲͲΨ‘ˆ–Š‡ƒ‘—–’ƒ‹†ǡ™Š‹Ž‡…‘’—–‹‰„—•‹‡••
‹…‘‡Ǥ

 

Š‡ˆ‘ŽŽ‘™‹‰•ŠƒŽŽ‘–„‡”‡‰ƒ”†‡†ƒ•Dz–”ƒ•ˆ‡”dzǡƒ†–Š‡”‡ˆ‘”‡ǡ‘…ƒ’‹–ƒŽ‰ƒ‹•ŠƒŽŽƒ”‹•‡‘–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ ›–”ƒ•ˆ‡”‘ˆƒ…ƒ’‹–ƒŽƒ••‡–‘”‹–ƒ‰‹„Ž‡ƒ••‡–„›ƒ’”‹˜ƒ–‡…‘’ƒ›‘”—Ž‹•–‡†’—„Ž‹……‘’ƒ›–‘ƒ
Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’Ǥ
Ȉ ›–”ƒ•ˆ‡”‘ˆƒ•Šƒ”‡‘”•Šƒ”‡•Š‡Ž†‹–Š‡…‘’ƒ›„›ƒ•Šƒ”‡Š‘Ž†‡”ƒ•ƒ”‡•—Ž–‘ˆ…‘˜‡”•‹‘‘ˆ–Š‡
…‘’ƒ›‹–‘ƒŽ‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷ͸‘”•‡…–‹‘ͷ͹
‘ˆ–Š‡‹‹–‡†‹ƒ„‹Ž‹–›ƒ”–‡”•Š‹’…–ǡʹͲͲͺǤ
Š‡„‡Ž‘™‡–‹‘‡†…‘†‹–‹‘•™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡–‘ƒ˜ƒ‹Ž–Š‡‡š‡’–‹‘Ǥ

Ǥ‘Ǥ ‘†‹–‹‘ š’Žƒƒ–‹‘

ƒǤ ••‡–•ƒ†‹ƒ„‹Ž‹–‹‡•
„Ǥ Šƒ”‡Š‘Ž†‡”•Ȁƒ’‹–ƒŽ
‘–”‹„—–‹‘Ȁ”‘ϐ‹–Šƒ”‹‰
ƒ–‹‘•‘…‘˜‡”•‹‘
…Ǥ ‘‘–Š‡”„‡‡ϐ‹––‘–Š‡
•Šƒ”‡Š‘Ž†‡”•
ŽŽ –Š‡ ƒ••‡–• ƒ† Ž‹ƒ„‹Ž‹–‹‡• ‘ˆ –Š‡ …‘’ƒ› ‹‡†‹ƒ–‡Ž› „‡ˆ‘”‡ –Š‡
…‘˜‡”•‹‘ „‡…‘‡ –Š‡ ƒ••‡–• ƒ† Ž‹ƒ„‹Ž‹–‹‡• ‘ˆ –Š‡ Ž‹‹–‡† Ž‹ƒ„‹Ž‹–›
’ƒ”–‡”•Š‹’Ǥ
ŽŽ–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡…‘’ƒ›‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡…‘˜‡”•‹‘
„‡…‘‡–Š‡’ƒ”–‡”•‘ˆ–Š‡Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’Ǥ
Š‡…ƒ’‹–ƒŽ…‘–”‹„—–‹‘ƒ†’”‘ϐ‹–•Šƒ”‹‰”ƒ–‹‘‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”•
‹–Š‡Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’ƒ”‡‹–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•–Š‡‹”
•Šƒ”‡Š‘Ž†‹‰‹–Š‡…‘’ƒ›‘–Š‡†ƒ–‡‘ˆ…‘˜‡”•‹‘Ǥ
Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡…‘’ƒ›†‘‘–”‡…‡‹˜‡ƒ›…‘•‹†‡”ƒ–‹‘‘”
„‡‡ϐ‹–ǡ†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ‹ƒ›ˆ‘”‘”ƒ‡”ǡ‘–Š‡”–Šƒ„›
™ƒ›‘ˆ•Šƒ”‡‹’”‘ϐ‹–ƒ†…ƒ’‹–ƒŽ…‘–”‹„—–‹‘‹–Š‡Ž‹‹–‡†Ž‹ƒ„‹Ž‹–›
’ƒ”–‡”•Š‹’Ǥ
 ͶͺͶ Lesson 8 Ȉ EP-TL

†Ǥ ”‘ϐ‹– •Šƒ”‹‰ ”ƒ–‹‘ ƒˆ–‡” Š‡ ƒ‰‰”‡‰ƒ–‡ ‘ˆ –Š‡ ’”‘ϐ‹– •Šƒ”‹‰ ”ƒ–‹‘ ‘ˆ –Š‡ •Šƒ”‡Š‘Ž†‡”• ‘ˆ –Š‡
…‘˜‡”•‹‘ …‘’ƒ› ‹ –Š‡ Ž‹‹–‡† Ž‹ƒ„‹Ž‹–› ’ƒ”–‡”•Š‹’ •ŠƒŽŽ ‘– „‡ Ž‡•• –Šƒ
ͷͲΨ ƒ– ƒ› –‹‡ †—”‹‰ –Š‡ ’‡”‹‘† ‘ˆ ϐ‹˜‡ ›‡ƒ”• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ
…‘˜‡”•‹‘Ǥ
‡Ǥ —”‘˜‡”‹‹– Š‡ –‘–ƒŽ •ƒŽ‡•ǡ –—”‘˜‡” ‘” ‰”‘•• ”‡…‡‹’–• ‹ –Š‡ „—•‹‡•• ‘ˆ –Š‡
…‘’ƒ› ‹ ƒ› ‘ˆ –Š‡ –Š”‡‡ ’”‡˜‹‘—• ›‡ƒ”• ’”‡…‡†‹‰ –Š‡ ’”‡˜‹‘—•
›‡ƒ” ‹ ™Š‹…Š –Š‡ …‘˜‡”•‹‘ –ƒ‡• ’Žƒ…‡ †‘‡• ‘– ‡š…‡‡† ͸Ͳ ŽƒŠ
”—’‡‡•Ǥ
‡ƒǤ ƒŽ—‡ ‘ˆ ƒ••‡–• ȋ•‡”–‡† „› Š‡–‘–ƒŽ˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–•ƒ•ƒ’’‡ƒ”‹‰‹–Š‡„‘‘•‘ˆƒ……‘—–‘ˆ
‹ƒ…‡‹ŽŽʹͲͳ͸Ȍ –Š‡…‘’ƒ›‹ƒ›‘ˆ–Š‡–Š”‡‡’”‡˜‹‘—•›‡ƒ”•’”‡…‡†‹‰–Š‡’”‡˜‹‘—•
›‡ƒ” ‹ ™Š‹…Š –Š‡ …‘˜‡”•‹‘ –ƒ‡• ’Žƒ…‡ †‘‡• ‘– ‡š…‡‡† ͷ …”‘”‡
”—’‡‡•Ǥ
ˆǤ ……——Žƒ–‡†’”‘ϐ‹–ȋ”‡•‡”˜‡•Ȍ ‘ƒ‘—–‹•’ƒ‹†ǡ‡‹–Š‡”†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ–‘ƒ›’ƒ”–‡”‘—–‘ˆ
„ƒŽƒ…‡‘ˆƒ……——Žƒ–‡†’”‘ϐ‹–•–ƒ†‹‰‹–Š‡ƒ……‘—–•‘ˆ–Š‡…‘’ƒ›
‘ –Š‡ †ƒ–‡ ‘ˆ …‘˜‡”•‹‘ ˆ‘” ƒ ’‡”‹‘† ‘ˆ ͵ ›‡ƒ”• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ
…‘˜‡”•‹‘Ǥ
š‡’–‹‘•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‘Ž›‹ˆ–Š‡…‘˜‡”•‹‘•ƒ–‹•ϐ‹‡•ƒŽŽ–Š‡„‡Ž‘™‡–‹‘‡†…‘†‹–‹‘•Ȃ
Ȉ Š‡ƒ„‘˜‡‡š‡’–‹‘‹•Ž‹‹–‡†–‘…ƒ’‹–ƒŽƒ••‡–•ƒ†‘–ƒ›‘–Š‡”ƒ••‡–•Ž‹‡‹˜‡–‘”›Ǥ
Ȉ Š‡Ž‹‹–‘–—”‘˜‡”‹•–‘”‡•–”‹…––Š‡–ƒš„‡‡ϐ‹–‘ˆ–Š‹•…Žƒ—•‡–‘•ƒŽŽ‡”‡–‹–‹‡•™Š‹…Š™‹ŽŽ”‡†‡”ƒ„‹‰
•‡…–‹‘‘ˆ…‘’ƒ‹‡•™‹ŽŽ‹‰–‘…‘˜‡”–ƒ•‹‡Ž‹‰‹„Ž‡Ǥ
Ȉ ‹œ‡‘ˆƒ••‡–•‹•ƒƒ††‹–‹‘ƒŽ’ƒ”ƒ‡–‡”–‘Œ—†‰‡–Š‡‡Ž‹‰‹„‹Ž‹–›‘ˆ–Š‡…‘’ƒ›–‘…Žƒ‹„‡‡ϐ‹–Ǥ
Š‡”‡ ƒ› ‘ˆ –Š‡ …‘†‹–‹‘• •’‡…‹ϐ‹‡† ƒ„‘˜‡ ƒ”‡ ‘– …‘’Ž‹‡† ™‹–Šǡ ‡š‡’–‹‘ ˆ”‘ …ƒ’‹–ƒŽ ‰ƒ‹• •ŠƒŽŽ ‘– „‡
ƒ˜ƒ‹Žƒ„Ž‡ǤŠ‡…‘†‹–‹‘••Š‘—Ž†„‡•ƒ–‹•ϐ‹‡†ƒ––Š‡–‹‡‘ˆ…‘˜‡”•‹‘Ǥ
Š‡”‡ ƒ› ‘ˆ –Š‡ …‘†‹–‹‘• •’‡…‹ϐ‹‡† ƒ„‘˜‡ ƒ”‡ ‘– …‘’Ž‹‡† ™‹–Šǡ ‡š‡’–‹‘ ˆ”‘ …ƒ’‹–ƒŽ ‰ƒ‹• •ŠƒŽŽ ‘– „‡
ƒ˜ƒ‹Žƒ„Ž‡ǤŠ‡…‘†‹–‹‘••Š‘—Ž†„‡•ƒ–‹•ϐ‹‡†ƒ––Š‡–‹‡‘ˆ…‘˜‡”•‹‘Ǥ††‹–‹‘ƒŽŽ›ǡ…‘†‹–‹‘•ȋ†Ȍƒ†ȋˆȌ•Š‘—Ž†„‡
•ƒ–‹•ϐ‹‡†ˆ‘””‡•’‡…–‹˜‡’‡”‹‘†•’‡…‹ϐ‹‡†–Š‡”‡‹Ǥ
Š‡”‡„‡‡ϐ‹–‹•–ƒ‡—†‡”•‡…–‹‘Ͷ͹ȋš‹‹‹„Ȍƒ––Š‡–‹‡‘ˆ…‘˜‡”•‹‘ǡƒ†•—„•‡“—‡–Ž›–Š‡”‡‹•‘Ǧ…‘’Ž‹ƒ…‡
‘ˆ…‘†‹–‹‘ȋ†Ȍ‘”ȋˆȌǡ„‡‡ϐ‹–ƒ˜ƒ‹Ž‡†•ŠƒŽŽ„‡…Šƒ”‰‡†–‘–ƒš‹–Š‡ƒ‡”•’‡…‹ϐ‹‡†„‡Ž‘™Ȃ
Ȉ ƒ’‹–ƒŽ
ƒ‹•‡š‡’–‡†‘ˆ–Š‡’”‡†‡…‡••‘”…‘’ƒ›™‹ŽŽ„‡…‘‡‹…‘‡‘ˆ„›™ƒ›‘ˆ…ƒ’‹–ƒŽ‰ƒ‹‹
–Š‡›‡ƒ”‹™Š‹…Š‘Ǧ…‘’Ž‹ƒ…‡–ƒ‡•’Žƒ…‡ǡƒ†
Ȉ ƒ’‹–ƒŽ
ƒ‹•‡š‡’–‡†‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”‘ˆ–Š‡’”‡†‡…‡••‘”…‘’ƒ›‘–”ƒ•ˆ‡”‘ˆ•Šƒ”‡•ƒ––Š‡–‹‡
‘ˆ…‘˜‡”•‹‘•ŠƒŽŽ„‡…‘‡‹…‘‡„›™ƒ›‘ˆ…ƒ’‹–ƒŽ‰ƒ‹‹–Š‡›‡ƒ”‹™Š‹…Š‘Ǧ…‘’Ž‹ƒ…‡–ƒ‡•’Žƒ…‡Ǥ
–Š‡”‡Ž‡˜ƒ–‘‹–•ǣ
Ȉ ‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ–Š‡ƒ••‡–ǣŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡…‘•–‘ˆƒ…“—‹•‹–‹‘‘ˆ’”‡†‡…‡••‘”…‘’ƒ›Ǥ
Ȉ ‘•–‘ˆ’”‘˜‡‡–ǣ›…‘•–‹…—””‡†‘‹’”‘˜‡‡–‘ˆ–Š‡ƒ••‡–•„›”‡†‡…‡••‘”‘’ƒ›ƒ†
•ŠƒŽŽ„‡–Š‡…‘•–‘ˆ‹’”‘˜‡‡–Ǥ
Ȉ ‡”‹‘†‘ˆŠ‘Ž†‹‰‘ˆƒ••‡–ǣ•’‡”‡…–‹‘ʹȋͶʹȌȋ„Ȍǡˆ‘”–Š‡’—”’‘•‡‘ˆ†‡–‡”‹‹‰’‡”‹‘†‘ˆŠ‘Ž†‹‰‘ˆ
…ƒ’‹–ƒŽƒ••‡–ˆ‘”†‡–‡”‹‹‰ƒ–—”‡‘ˆ…ƒ’‹–ƒŽ‰ƒ‹ǡ’‡”‹‘†ˆ‘”™Š‹…Š–Š‡ƒ••‡–™ƒ•Š‡Ž†„›’”‡†‡…‡••‘”
…‘’ƒ›•ŠƒŽŽ„‡‹…Ž—†‡†Ǥ
Noteǣ…”‡†‹–‘ˆ–Š‡…‘’ƒ›‹•‘–ƒŽŽ‘™‡†–‘„‡…ƒ””‹‡†ˆ‘”™ƒ”†‹–Š‡Šƒ†•‘ˆ‘…‘˜‡”•‹‘‘ˆ…‘’ƒ›
‹–‘Ǥ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͺͷ

  

Š‡–ƒ„Ž‡Ȁ†‹ƒ‰”ƒ„‡Ž‘™‡š’Žƒ‹–Š‡˜ƒ”‹‘—•ƒ•’‡…–•–Šƒ–”‡“—‹”‡…ƒ”‡ˆ—Ž”‡ƒ†‹‰ƒ†‡˜ƒŽ—ƒ–‹‘Ǥ

‡›‘‹–•
‡…–‹‘ͳ͹ͺ
Ȉ –‹Ž–Š‡Ž‹“—‹†ƒ–‘””‡…‡‹˜‡•–Š‡‹–‹ƒ–‹‘‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›ǡŠ‡‹•‘–’‡”‹––‡†–‘’ƒ”–™‹–Š–Š‡ƒ••‡–•‘ˆ–Š‡
‘’ƒ›Ǥ
Ȉ ˆ–Š‡ǤǤˆƒ‹Ž•–‘‘–‹ˆ›–Š‡–ƒšŽ‹ƒ„‹Ž‹–›™‹–Š‹–Š‡͵‘–Š•ǯ–‹‡’‡”‹‘†ǡ–Š‡–Š‡†‡ƒ†‘ˆƒ†‡„›–Š‡
ǤǤƒˆ–‡”–Š‡‡š’‹”›‘ˆ–Š‡•–ƒ–—–‘”›’‡”‹‘†ǡ‘ˆ͵‘–Š•ˆƒŽŽ•‘—–•‹†‡–Š‡•…‘’‡‘ˆ’”‡ˆ‡”‡–‹ƒŽ’ƒ›‡–
™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…Ǥͷ͵Ͳ‘ˆ–Š‡…–ƒ†Š‡…‡ǡ•—…Š–ƒšŽ‹ƒ„‹Ž‹–›–Š‡ƒ••—‡•–Š‡•ƒ‡’”‡ˆ‡”‡…‡ǡ
‹Ǥ‡Ǥǡ”ƒ•’ƒ”‹’ƒ••—™‹–Š–Š‡…Žƒ‹•‘ˆ‘”†‹ƒ”›…”‡†‹–‘”•Ǥ
Ȉ  …ƒ•‡ –Š‡ Ž‹“—‹†ƒ–‘” ˆƒ‹Ž• –‘ ‘–‹ˆ› Š‹• ƒ’’‘‹–‡–ǡ ‘” ’ƒ”–• ™‹–Š ƒ› ƒ••‡–• ‘ˆ –Š‡ ‘’ƒ› ‹
…‘–”ƒ˜‡–‹‘™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡•‡…–‹‘ǡŠ‡™‹ŽŽ„‡’‡”•‘ƒŽŽ›Ž‹ƒ„Ž‡ˆ‘”–Š‡’ƒ›‡–‘ˆ–ƒš™Š‹…Š
‘–Š‡”™‹•‡–Š‡…‘’ƒ›™ƒ•Ž‹ƒ„Ž‡–‘’ƒ›Ǥ
‡…–‹‘ʹʹͲ
Ȉ Š‡‡”ƒŽƒ‹‰Š‘—”–Šƒ•Š‡Ž†–Šƒ–ƒ‘’ƒ›‹‹“—‹†ƒ–‹‘…ƒ‘–„‡†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹
†‡ˆƒ—Ž–‘–Š‡•ƒ‡ˆ‘‘–‹‰ƒ•ƒ›‘–Š‡”ƒ••‡••‡‡ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡…–‹‘ʹͲͲ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ
„‡…ƒ—•‡–Š‡‘’ƒ›‹•—†‡”–Š‡…‘–”‘Ž‘ˆƒ‹“—‹†ƒ–‘”ǡ™Š‘ƒ…–•ƒ••—…Šǡ‹ƒ……‘”†ƒ…‡–‘–Š‡‘’ƒ‹‡•
…–Ǥ‡…‡ǡŠ‡…ƒ‘–„‡‡“—ƒ–‡†–‘„‡ƒ†‡ˆƒ—Ž–‡”ƒ†–Š‡”‡ƒˆ–‡”ƒ•‡†–‘’ƒ›–Š‡‹–‡”‡•–—Ȁ•ʹʹͲ‘”
’‡ƒŽ–›—Ȁ•ʹʹͳǤ
Ȉ –‹••‡––Ž‡†Žƒ™–Šƒ–ƒDz…‘’ƒ›‹Ž‹“—‹†ƒ–‹‘dz‹•‘––Š‡•ƒ‡‹†‘ˆƒ••‡••‡‡ƒ•ƒDz™‘”‹‰…‘’ƒ›dzǤ
–‡”‡•–…Žƒ‹‹”‡•’‡…–‘ˆ–ƒš†—‡ˆ”‘–Š‡…‘’ƒ›ǡ’”‹‘”–‘–Š‡†ƒ–‡‘ˆ™‹†‹‰—’ǡ‹•‘–‡–‹–Ž‡†–‘
’”‹‘”‹–›—Ȁ•ͷ͵Ͳ‘ˆ–Š‡‘’ƒ‹‡•…–Ǥ
Ȉ Š‡‹‰Š‘—”–‘ˆ‡”ƒŽƒŠ‡Ž†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ‘’ƒ‹‡•…–ƒ”‡•’‡…‹ƒŽƒ†–Š‘•‡‘ˆ–Š‡…‘‡ƒš
…–ƒ”‡‰‡‡”ƒŽƒ†‹ˆ–Š‡”‡‹•ƒƒ’’ƒ”‡– …‘ϐŽ‹…–„‡–™‡‡–Š‡–™‘‡ƒ…–‡–•ǡ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡
‘’ƒ‹‡•…–•ŠƒŽŽ’”‡˜ƒ‹ŽǤ
‡…–‹‘ͳ͵ͻ
Ȉ ˆ–Š‡…‘’ƒ›ˆƒ‹Ž•–‘ϐ‹Ž‡–Š‡”‡–—”ǡ•—…Š‡˜‡–—ƒŽ‹–‹‡•…‘—Ž†„‡•‡”‹‘—•‹ƒ–—”‡ƒ•–Š‡…‘’ƒ›ƒ›–Š‡
Ž‘•‡‹–•‡š‡’–‹‘•ƒ†–Š‡–ƒšŽ‹ƒ„‹Ž‹–‹‡•ƒ›–Š‡‹–‡”ˆ‡”‡™‹–Šƒ†ƒ†˜‡”•‡Ž›ƒˆˆ‡…––Š‡…Žƒ‹•‘ˆ‹–•…”‡†‹–‘”•Ǥ
 Ͷͺ͸ Lesson 8 Ȉ EP-TL

–—•–„‡‘–‡†–Šƒ–—Ȁ•Ͷ͸ǡ™Š‡”‡–Š‡ƒ••‡–•‘ˆ–Š‡‘’ƒ›ƒ”‡†‹•–”‹„—–‡†–‘–Š‡Šƒ”‡Š‘Ž†‡”•ǡ‘‹–•Ž‹“—‹†ƒ–‹‘ǡ
•—…Š†‹•–”‹„—–‹‘™‹ŽŽ‘–„‡”‡‰ƒ”†‡†ƒ•ƒ–”ƒ•ˆ‡”˜‹•ǦǦ˜‹•ƒ’‹–ƒŽ
ƒ‹•Ǥ

‹ƒ„‹Ž‹–›‘ˆ‹”‡…–‘”•ƬŠƒ”‡Š‘Ž†‡”•
Ȉ ‡…–‹‘ͳ͹ͻ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ˆƒ•–‡•–Š‡†‹”‡…–‘”•‘ˆƒ’”‹˜ƒ–‡…‘’ƒ›™‹–Šƒ’‡”•‘ƒŽŽ‹ƒ„‹Ž‹–›‹–Š‡
‡˜‡–‘ˆ‘Ǧ”‡…‘˜‡”›‘ˆ‹–•–ƒš†—‡•ǤŠ‹•Ž‹ƒ„‹Ž‹–›‹•DzŒ‘‹–ƒ†•‡˜‡”ƒŽdzǤ
Ȉ ‡…–‹‘ ʹȋʹʹȌȋ…Ȍ ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–ǡ ƒ› †‹•–”‹„—–‹‘ ƒ†‡ –‘ –Š‡ •Šƒ”‡Š‘Ž†‡”• ‘ˆ –Š‡ …‘’ƒ› ‘
Ž‹“—‹†ƒ–‹‘ǡ–‘–Š‡‡š–‡––‘™Š‹…Š–Š‡†‹•–”‹„—–‹‘‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡ƒ……——Žƒ–‡†’”‘ϐ‹–•‘ˆ–Š‡…‘’ƒ›
‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡Ž‹“—‹†ƒ–‹‘ǡ™Š‡–Š‡”…ƒ’‹–ƒŽ‹œ‡†‘”‘–ǡ™‘—Ž†„‡†‡‡‡†–‘„‡†‹˜‹†‡†
 
ͳǤ‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ•–ƒ–‡•–Šƒ–Ȃ
Ȉ ™Š‡”‡ƒ…‘’ƒ›ǡ‘–„‡‹‰ƒ…‘’ƒ›‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†ǡ
Ȉ ”‡…‡‹˜‡•‹ƒ›’”‡˜‹‘—•›‡ƒ”ǡˆ”‘ƒ›’‡”•‘„‡‹‰ƒ”‡•‹†‡–ǡ
Ȉ ƒ›…‘•‹†‡”ƒ–‹‘ˆ‘”‹••—‡‘ˆ•Šƒ”‡•–Šƒ–‡š…‡‡†•–Š‡ˆƒ…‡˜ƒŽ—‡‘ˆ•—…Š•Šƒ”‡•ǡ
Ȉ –Š‡ƒ‰‰”‡‰ƒ–‡…‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†ˆ‘”•—…Š•Šƒ”‡•ƒ•‡š…‡‡†•–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡ȋ Ȍ‘ˆ–Š‡•Šƒ”‡•ǡ
•ŠƒŽŽ„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš—†‡”–Š‡Š‡ƒ†Dz…‘‡ˆ”‘‘–Š‡”•‘—”…‡•dzǤ
…ƒ•‡‘ˆ‹••—‡‘ˆ•Šƒ”‡•ƒ–’”‡‹—„›Ž‹•–‡†…‘’ƒ‹‡•ǡ•Šƒ”‡’”‡‹—‹•‘–…‘•‹†‡”‡†ƒ•‹…‘‡Ǥ‘™‡˜‡”ǡ‹
…ƒ•‡‘ˆ—ǦŽ‹•–‡†…‘’ƒ‹‡•ǡ’”‡‹—…ƒ„‡…‘•‹†‡”‡†ƒ•‹…‘‡‹…ƒ•‡–Š‡’”‹…‡…Šƒ”‰‡†ƒ––Š‡–‹‡‘ˆ‹••—‡‘ˆ
•Šƒ”‡‹•‘”‡–Šƒˆƒ…‡˜ƒŽ—‡ȋ–Šƒ–‹•ƒ–’”‡‹—Ȍƒ†‹•ƒŽ•‘Š‹‰Š‡”–Šƒˆƒ‹”ƒ”‡–˜ƒŽ—‡Ǥ
”‘˜‹†‡†–Šƒ––Š‹•…Žƒ—•‡•ŠƒŽŽ‘–ƒ’’Ž›™Š‡”‡–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”‹••—‡‘ˆ•Šƒ”‡•‹•”‡…‡‹˜‡†ǣ
ȋ‹Ȍ „›ƒ˜‡–—”‡…ƒ’‹–ƒŽ—†‡”–ƒ‹‰ˆ”‘ƒ˜‡–—”‡…ƒ’‹–ƒŽ…‘’ƒ›‘”ƒ˜‡–—”‡…ƒ’‹–ƒŽˆ—†Ǣ‘”ȋ‹‹Ȍ„›ƒ…‘’ƒ›
ˆ”‘ƒ…Žƒ••‘”…Žƒ••‡•‘ˆ’‡”•‘•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǤ
—Ž‡ͳͳ
Š‡”—Ž‡•’”‡•…”‹„‡•‡’ƒ”ƒ–‡ˆ”ƒ‡™‘”ˆ‘”“—‘–‡†ƒ†—“—‘–‡†•‡…—”‹–‹‡•‹–Š‡…‘–‡š–‘ˆ†‡–‡”‹ƒ–‹‘‘ˆ Ǥ
Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͺ͹

ŽŽ—•–”ƒ–‹‘ͺǣ
Š‡ ˆ‘ŽŽ‘™‹‰ †‡–ƒ‹Ž• ‘ˆ –Š‡ •Šƒ”‡• ‹••—‡† „› –Š‡ ˆ‘ŽŽ‘™‹‰ …Ž‘•‡Ž› Š‡Ž† …‘’ƒ‹‡• ƒ”‡ ƒ˜ƒ‹Žƒ„Ž‡Ǥ ‘— ƒ”‡
”‡“—‹”‡†–‘ƒ†˜‹•‡–Š‡‘’ƒ›‘–Š‡ƒ’’Ž‹…ƒ„‹Ž‹–›‘”‘–Š‡”™‹•‡‘ˆ‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„ȌǤ

‘ˆŠƒ”‡• ‘ˆŠƒ”‡• ••—‡”‹…‡ ’’Ž‹…ƒ„‹Ž‹–›Ƭ

‘’ƒ› ‘Ǥ‘ˆŠƒ”‡•
ȋȌ ȋȌ ȋȌ Šƒ”‰‡ƒ„Ž‡ƒš
ȋȌ–†Ǥ ͳͲͲͲͲ ͳͲͲ ͳʹͲ ͳ͵Ͳ ‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„Ȍ
ƒ––”ƒ…–‡†ƒ•–Š‡
•Šƒ”‡•ƒ”‡‹••—‡†ƒ–
’”‡‹—Ǥ
ͳͲͲͲͲȋͳ͵ͲǦ
ͳʹͲȌα
ͳͲͲǡͲͲͲ™‘—Ž†„‡
…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
—†‡”–Š‡Š‡ƒ†
Dz…‘‡ˆ”‘‘–Š‡”
•‘—”…‡•dz
ȋȌ–†Ǥ ʹͲͲͲͲ ͳͲͲ ͳʹͲ ͳͳͲ ‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„Ȍ
ƒ––”ƒ…–‡†ƒ•–Š‡
•Šƒ”‡•ƒ”‡‹••—‡†ƒ–
’”‡‹—Ǥ
‘™‡˜‡”ǡ‘ƒ‘—–
‹•…Šƒ”‰‡ƒ„Ž‡–‘–ƒšƒ•
–Š‡••—‡”‹…‡‹•δ
–Š‡ 
 Ͷͺͺ Lesson 8 Ȉ EP-TL

ȋȌ–†Ǥ ͵ͲͲͲͲ ͳͲͲ ͻͲ ͻͺ ‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„Ȍ

ƒ”‡‘–ƒ––”ƒ…–‡†ƒ•
–Š‡•Šƒ”‡•ƒ”‡‘–
‹••—‡†ƒ–’”‡‹—ǡ
”ƒ–Š‡”ƒ–ƒ†‹•…‘—–
‘ ǡ‡˜‡–Š‘—‰Š
–Š‡‹••—‡’”‹…‡‹•ε

ȋȌ–†Ǥ ͶͲͲͲͲ ͳͲͲ ͻͲ ͳͳͲ ‡…–‹‘ͷ͸ȋʹȌȋ˜‹‹„Ȍ
ƒ––”ƒ…–‡†ƒ•–Š‡
•Šƒ”‡•ƒ”‡‹••—‡†ƒ–
’”‡‹—Ǥ
ͶͲͲͲͲȋͳͳͲǦͻͲȌα
ͺͲͲǡͲͲͲ™‘—Ž†
„‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒš
—†‡”–Š‡Š‡ƒ†
Dz…‘‡ˆ”‘–Š‡”
‘—”…‡•dz

 

ǡ


‡…–‹‘ʹȋͳȌ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǡ†‡ϐ‹‡•–Š‡–‡”DzƒƒŽ‰ƒƒ–‹‘dzƒ•ˆ‘ŽŽ‘™•ǣ
DzƒŽ‰ƒƒ–‹‘‹”‡Žƒ–‹‘–‘‘’ƒ‹‡•ǡ‡ƒ•–Š‡‡”‰‡”‘ˆ‘‡‘”‘”‡…‘’ƒ‹‡•™‹–Šƒ‘–Š‡”…‘’ƒ›‘”
–Š‡‡”‰‡”‘ˆ–™‘‘”‘”‡…‘’ƒ‹‡•–‘ˆ‘”‘‡…‘’ƒ›ǡ–Š‡…‘’ƒ‹‡•™Š‹…Š•‘‡”‰‡„‡‹‰”‡ˆ‡””‡†–‘ƒ•
–Š‡ DzƒƒŽ‰ƒƒ–‹‰ …‘’ƒ›dz ƒ† –Š‡ …‘’ƒ› ™‹–Š ™Š‹…Š –Š‡› ‡”‰‡ ‘” ™Š‹…Š ‹• ˆ‘”‡† ƒ• ƒ ”‡•—Ž– ‘ˆ –Š‡
‡”‰‡”ǡ„‡‹‰”‡ˆ‡””‡†–‘ƒ•–Š‡DzƒƒŽ‰ƒƒ–‡†…‘’ƒ›dzǡ‹•—…Šƒƒ‡”–Šƒ–ǣ
ƒȌ ƒŽŽ–Š‡’”‘’‡”–›‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ȋ‹‡•Ȍ„‡ˆ‘”‡–Š‡ƒƒŽ‰ƒƒ–‹‘„‡…‘‡–Š‡’”‘’‡”–›‘ˆ–Š‡
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›„›˜‹”–—‡‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘
„Ȍ ƒŽŽ–Š‡Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ȋ‹‡•Ȍ„‡ˆ‘”‡–Š‡ƒƒŽ‰ƒƒ–‹‘„‡…‘‡–Š‡Ž‹ƒ„‹Ž‹–‹‡•‘ˆ
–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›„›˜‹”–—‡‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘
…Ȍ •Šƒ”‡Š‘Ž†‡”•Š‘Ž†‹‰‘–Ž‡••–Šƒ͵ȀͶ–Š•‹˜ƒŽ—‡‘ˆ–Š‡•Šƒ”‡•‹–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›„‡…‘‡
•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›„›˜‹”–—‡‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘
 ‘–Š‡”™‹•‡ –Šƒ ƒ• ƒ ”‡•—Ž– ‘ˆ –Š‡ ƒ…“—‹•‹–‹‘ ‘ˆ –Š‡ ’”‘’‡”–› ‘ˆ ‘‡ …‘’ƒ› „› ƒ‘–Š‡” …‘’ƒ›
’—”•—ƒ––‘–Š‡’—”…Šƒ•‡‘ˆ•—…Š’”‘’‡”–›„›–Š‡‘–Š‡”…‘’ƒ›‘”ƒ•ƒ”‡•—Ž–‘ˆ–Š‡†‹•–”‹„—–‹‘‘ˆ•—…Š
’”‘’‡”–›–‘–Š‡‘–Š‡”…‘’ƒ›ƒˆ–‡”–Š‡™‹†‹‰—’‘ˆ–Š‡ϐ‹”•–‡–‹‘‡†…‘’ƒ›Ǥ

—•‹‡••‘••‡•Ƭƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘
•’‡…‹ƒŽ’”‘˜‹•‹‘‹•ƒ†‡™Š‹…Š”‡Žƒš‡•–Š‡’”‘˜‹•‹‘”‡Žƒ–‹‰–‘…ƒ””›‹‰ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆ‘ˆƒ……——Žƒ–‡†
„—•‹‡••Ž‘••ƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‹…‡”–ƒ‹…ƒ•‡•‘ˆƒƒŽ‰ƒƒ–‹‘ǤŠ‡”‡–Š‡”‡Šƒ•„‡‡ƒ
ƒƒŽ‰ƒƒ–‹‘‘ˆƒ…‘’ƒ›‘™‹‰ƒ‹†—•–”‹ƒŽ—†‡”–ƒ‹‰‘”ƒ•Š‹’‘”ƒŠ‘–‡Ž™‹–Šƒ‘–Š‡”…‘’ƒ›ǡ‘”ƒ
ƒƒŽ‰ƒƒ–‹‘ ‘ˆ ƒ „ƒ‹‰ …‘’ƒ› ™‹–Š ƒ •’‡…‹ϐ‹‡† „ƒǡ –Š‡ –Š‡ ƒ……——Žƒ–‡† Ž‘••‡• ‘” –Š‡ —ƒ„•‘”„‡†
†‡’”‡…‹ƒ–‹‘‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡Ž‘••‘”–Š‡—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘‘ˆ–Š‡
ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ˆ‘”–Š‡‹™Š‹…Š–Š‡–”ƒ•ˆ‡”™ƒ•‡ˆˆ‡…–‡†Ǥ‘•‡“—‡–Ž›ǡ–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›…ƒ
…ƒ””›ˆ‘”™ƒ”†•—…ŠŽ‘••ˆ‘”ͺǯ•‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰–Š‡”‡Ž‡˜ƒ–‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‘™ƒ•‡ˆˆ‡…–‡†Ǥ

‘™‡˜‡”ǡ–Š‡ƒ„‘˜‡”‡Žƒšƒ–‹‘••ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†‹ˆǣ
ƒȌ –Š‡ ƒƒŽ‰ƒƒ–‡† …‘’ƒ› ‹• ‡‰ƒ‰‡† ‹ –Š‡ „—•‹‡•• ‹ ™Š‹…Š –Š‡ ƒ……——Žƒ–‡† Ž‘•• ‘” †‡’”‡…‹ƒ–‹‘
”‡ƒ‹•—ƒ„•‘”„‡†ˆ‘”εα͵›‡ƒ”•Ǣ
 Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͺͻ

„Ȍ –Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›Šƒ•Š‡Ž†…‘–‹—‘—•Ž›ƒ•‘†ƒ–‡‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‘εα͵ȀͶ–Š•‘ˆ–Š‡„‘‘
˜ƒŽ—‡‘ˆϐ‹š‡†ƒ••‡–•ʹ›‡ƒ”•’”‹‘”–‘–Š‡†ƒ–‡‘ˆƒƒŽ‰ƒƒ–‹‘Ǣ
…Ȍ –Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›Š‘Ž†•…‘–‹—‘—•Ž›ˆ‘”εαͷ›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆƒƒŽ‰ƒƒ–‹‘ǡεα͵ȀͶ–Š•‘ˆ
–Š‡„‘‘˜ƒŽ—‡‘ˆϐ‹š‡†ƒ••‡–•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›•‘ƒ…“—‹”‡†Ǣ
†Ȍ –Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›…‘–‹—‡•–Š‡„—•‹‡••‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ˆ‘”εαͷ›‡ƒ”•ˆ”‘–Š‡
†ƒ–‡‘ˆƒƒŽ‰ƒƒ–‹‘Ǥ
ˆƒ›‘ˆ–Š‡ƒ„‘˜‡…‘†‹–‹‘•ƒ”‡‘–…‘’Ž‹‡†™‹–Šǡ–Š‡–Š‡•‡–‘ˆˆ‘ˆŽ‘••Ȁ†‡’”‡…‹ƒ–‹‘ǡƒ†‡‹ƒ›ǡ‹–Š‡
Šƒ†•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡‹…‘‡‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›…Šƒ”‰‡ƒ„Ž‡–‘
–ƒšˆ‘”–Š‡›‡ƒ”‘ˆ‘Ǧ…‘’Ž‹ƒ…‡Ǥ

ƒ’‹–ƒŽ
ƒ‹•
†‡”‡…–‹‘Ͷ͹ȋ˜‹Ȍƒ†ȋ˜‹‹Ȍ–”ƒ•ˆ‡”†‘‡•‘–‹…Ž—†‡ƒ›–”ƒ•ˆ‡”‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘‘ˆƒ…ƒ’‹–ƒŽƒ••‡–
„›–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›‹ˆ–Š‡Žƒ––‡”‹•ƒ†‹ƒ…‘’ƒ›Ǥ ”‘–Š‡ƒ••‡••‡–
›‡ƒ”ͳͻͻ͵ǦͻͶǡƒ›–”ƒ•ˆ‡”‘ˆ•Šƒ”‡•‹ƒ†‹ƒ…‘’ƒ›Š‡Ž†„›ƒˆ‘”‡‹‰…‘’ƒ›–‘ƒ‘–Š‡”ˆ‘”‡‹‰…‘’ƒ›
‹’—”•—ƒ…‡‘ˆƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘„‡–™‡‡–Š‡–™‘ˆ‘”‡‹‰…‘’ƒ‹‡•™‹ŽŽ‘–„‡”‡‰ƒ”†‡†ƒ•ƒ–”ƒ•ˆ‡”ˆ‘”
–Š‡’—”’‘•‡‘ˆŽ‡˜›‹‰–ƒš‘…ƒ’‹–ƒŽ‰ƒ‹•Š‹•’”‘˜‹•‹‘™‹ŽŽƒ’’Ž›‹ˆεαʹͷΨ‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰
…‘’ƒ›…‘–‹—‡–‘”‡ƒ‹•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡ƒƒŽ‰ƒƒ–‡†ˆ‘”‡‹‰…‘’ƒ›ƒ†•—…Š–”ƒ•ˆ‡”†‘‡•‘–ƒ––”ƒ…–
–ƒš‹–Š‡…‘—–”›‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‹••‹–—ƒ–‡†Ǥ
—”–Š‡”ǡ–Š‡–‡”Dz–”ƒ•ˆ‡”dz†‘‡•‘–‹…Ž—†‡ƒ›–”ƒ•ˆ‡”„›ƒ•Šƒ”‡Š‘Ž†‡”‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘ǡ‘ˆƒ…ƒ’‹–ƒŽ
ƒ••‡–ǡ„‡‹‰•Šƒ”‡•Š‡Ž†„›Š‹‹–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›ǡ‹ˆ–Š‡–”ƒ•ˆ‡”‹•ƒ†‡‹…‘•‹†‡”ƒ–‹‘‘ˆƒŽŽ‘–‡–
–‘Š‹ǡ•Šƒ”‡•‹–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǡƒ†–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›‹•ƒ†‹ƒ‘’ƒ›Ǥ˜‡ǡ’‡”•‡ǡ
ƒƒŽ‰ƒƒ–‹‘†‘‡•ǯ–‡–ƒ‹Ž‡š…Šƒ‰‡‘””‡Ž‹“—‹•Š‡–‘ˆƒ••‡–•ǡƒ†Š‡…‡ǡ…ƒ’‹–ƒŽ‰ƒ‹•–ƒš‹•‘–ƒ––”ƒ…–‡†ǤŠ‡
•ƒ‡™ƒ•—’Š‡Ž†‹–Š‡…ƒ•‡˜•Ǥƒ•‹ƒŽƒ‡Ǥ‘™‡˜‡”ǡ–Š‡„‡‡ϐ‹–†‘‡•ǯ–…‘–‹—‡‹ˆ–Š‡•Šƒ”‡Š‘Ž†‡”•‘ˆ
ƒƒŽ‰ƒƒ–‹‰ …‘’ƒ›ƒ”‡ƒŽŽ‘––‡†•‘‡–Š‹‰‘”‡–Šƒ–Š‡•Šƒ”‡‹–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǡ˜‹œǤǡ„‘†•Ȁ
†‡„‡–—”‡•‡–…Ǥƒ•–Š‹•™ƒ•—’Š‡Ž†‹–Š‡…ƒ•‡‘ˆ˜•Ǥ
ƒ—–ƒƒ”ƒ„Šƒ‹”—•–Ǥ

”‡Ž‹‹ƒ”›š’‡•‡•
Š‡„‡‡ϐ‹–‘ˆƒ‘”–‹œƒ–‹‘‘ˆ’”‡Ž‹‹ƒ”›‡š’‡•‡•—†‡”•‡…–‹‘͵ͷƒ”‡‘”†‹ƒ”‹Ž›ƒ˜ƒ‹Žƒ„Ž‡Ȃ
Ȉ Ž›–‘–Š‡ƒ••‡••‡‡™Š‘‹…—””‡†–Š‡‡š’‡†‹–—”‡Ǥ
Ȉ ‘™‡˜‡”ǡ–Š‡„‡‡ϐ‹–™‹ŽŽ‘–„‡Ž‘•–‹…ƒ•‡–Š‡—†‡”–ƒ‹‰‘ˆƒ†‹ƒ…‘’ƒ›™Š‹…Š‹•‡–‹–Ž‡†–‘–Š‡
ƒ‘”–‹œƒ–‹‘‹•–”ƒ•ˆ‡””‡†–‘ƒ‘–Š‡”†‹ƒ…‘’ƒ›‹ƒ•…Š‡‡‘ˆƒƒŽ‰ƒƒ–‹‘™‹–Š‹–Š‡ͳͲ›‡ƒ”•Ȁ
ͷǦ›‡ƒ”’‡”‹‘†‘ˆƒ‘”–‹œƒ–‹‘Ǥ
Ȉ Ž–Šƒ–‡˜‡–ǡ–Š‡†‡†—…–‹‘‹”‡•’‡…–‘ˆ’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡ƒƒŽ‰ƒƒ–‹‘–ƒ‡•’Žƒ…‡ƒ†–Š‡
ˆ‘ŽŽ‘™‹‰’”‡˜‹‘—•›‡ƒ”™‹–Š‹–Š‡ͳͲ›‡ƒ”•Ȁͷ›‡ƒ”•’‡”‹‘†™‹ŽŽ„‡ƒŽŽ‘™‡†–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›
ƒ†‘––‘–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›Ǥ
ƒ’‹–ƒŽš’‡†‹–—”‡‘…‹‡–‹ϐ‹…‡•‡ƒ”…ŠƬ‘™ǦŠ‘™
…ƒ•‡‘ˆƒƒƒŽ‰ƒƒ–‹‘ǡ‹ˆ–Š‡ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›Ȃ
Ȉ –”ƒ•ˆ‡”•–‘–Š‡ƒƒŽ‰ƒƒ–‡†…‘’ƒ›ǡ™Š‹…Š‹•ƒ†‹ƒ…‘’ƒ›ǡ
Ȉ ƒ›ƒ••‡–”‡’”‡•‡–‹‰…ƒ’‹–ƒŽ‡š’‡†‹–—”‡‘•…‹‡–‹ϐ‹…”‡•‡ƒ”…Šǡ
Ȉ ’”‘˜‹•‹‘ ‘ˆ •‡…–‹‘ ͵ͷ ™‘—Ž† ƒ’’Ž› –‘ –Š‡ ƒƒŽ‰ƒƒ–‡† …‘’ƒ› ƒ• –Š‡› ™‘—Ž† Šƒ˜‡ ƒ’’Ž‹‡† –‘
ƒƒŽ‰ƒƒ–‹‰…‘’ƒ›‹ˆ–Š‡Žƒ––‡”Šƒ†‘––”ƒ•ˆ‡””‡†–Š‡ƒ••‡–ǤŠ‡•ƒ‡’”‹…‹’Ž‡ƒ’’Ž‹‡•‹‡••‡…‡
ˆ‘”–Š‡‡š’‡†‹–—”‡‘‘™ǦŠ‘™Ǥ
š’‡†‹–—”‡‘ƒŽ‰ƒƒ–‹‘
‡…–‹‘͵ͷ’”‘˜‹†‡•–Šƒ–Ȃ
Ȉ ™Š‡”‡ƒƒ••‡••‡‡„‡‹‰ƒ†‹ƒ…‘’ƒ›ǡ
ͶͻͲ Lesson 8 Ȉ EP-TL

Ȉ ‹…—”•ƒ›‡š’‡†‹–—”‡ǡ
Ȉ ™Š‘ŽŽ›ƒ†‡š…Ž—•‹˜‡Ž›ˆ‘”–Š‡’—”’‘•‡•‘ˆƒƒŽ‰ƒƒ–‹‘‘”†‡‡”‰‡”‘ˆƒ—†‡”–ƒ‹‰ǡ–Š‡ƒ••‡••‡‡
•ŠƒŽŽ„‡ƒŽŽ‘™‡†ǡ
Ȉ ƒ†‡†—…–‹‘‘ˆƒƒ‘—–‡“—ƒŽ–‘‘‡Ǧϐ‹ˆ–Š‘ˆ•—…Š‡š’‡†‹–—”‡ˆ‘”‡ƒ…Š‘ˆ–Š‡ϐ‹˜‡•—……‡••‹˜‡’”‡˜‹‘—•
›‡ƒ”•„‡‰‹‹‰™‹–Š–Š‡‹™Š‹…Š•—…ŠƒƒŽ‰ƒƒ–‹‘Ȁ†‡‡”‰‡”–ƒ‡•’Žƒ…‡Ǥ

Ǧ

Ȉ ”–‹…Ž‡͵͸͸ȋ͸Ȍ‘ˆ–Š‡‘•–‹–—–‹‘†‡ϐ‹‡•…‘”’‘”ƒ–‡–ƒšǤ
Ȉ •’‡”•‡…–‹‘ʹȋͳ͹Ȍ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ‘’ƒ›‡ƒ•ƒ›†‹ƒ‘’ƒ›ǡ‘”ƒ›„‘†›…‘”’‘”ƒ–‡
‹…‘”’‘”ƒ–‡†„›‘”—†‡”–Š‡Žƒ™•‘ˆƒ…‘—–”›‘—–•‹†‡†‹ƒǡ‘”ƒ›‹•–‹–—–‹‘ǡƒ••‘…‹ƒ–‹‘‘”„‘†›™Š‹…Š
‹•‘”™ƒ•ƒ••‡••ƒ„Ž‡‘”™ƒ•ƒ••‡••‡†ƒ•ƒ…‘’ƒ›ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”—†‡”–Š‡†‹ƒ…‘‡ƒš
…–ǡͳͻʹʹ‘”™ƒ•ƒ••‡••‡†—†‡”–Š‹•…–ǡƒ•ƒ…‘’ƒ›ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘‘”„‡ˆ‘”‡
’”‹Žͳǡͳͻ͹ͲǢ‘”ƒ›‹•–‹–—–‹‘ǡƒ••‘…‹ƒ–‹‘‘”„‘†›ǡ™Š‡–Š‡”‹…‘”’‘”ƒ–‡†‘”‘–ƒ†™Š‡–Š‡”†‹ƒ‘”
‘Ǧ†‹ƒǡ™Š‹…Š‹•†‡…Žƒ”‡†„›‰‡‡”ƒŽ‘”•’‡…‹ƒŽ‘”†‡”‘ˆ–Š‡–‘„‡ƒ…‘’ƒ›Ǥ
Ȉ ‘’ƒ‹‡•—†‡”–Š‡…‘‡Ǧ–ƒš…–ƒ”‡…‘’ƒ‹‡•‹™Š‹…Š–Š‡’—„Ž‹…ƒ”‡•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†ƒŽ•‘
”‡ˆ‡””‡†–‘ƒ•™‹†‡Ž›ǦŠ‡Ž†…‘’ƒ‹‡•ƒ†…‘’ƒ‹‡•‹™Š‹…Š’—„Ž‹…ƒ”‡‘–•—„•–ƒ–‹ƒŽŽ›‹–‡”‡•–‡†ƒ†
ƒŽ•‘”‡ˆ‡””‡†–‘ƒ•…Ž‘•‡Ž›Š‡Ž†…‘’ƒ›Ǥ
Ȉ ‹‹—Ž–‡”ƒ–‡ƒšȋDzdzȌ‘–Š‡„‘‘’”‘ϐ‹–‘ˆƒ‘’ƒ›™‘—Ž†‘–ƒ’’Ž›–‘ƒ ‘”‡‹‰‘’ƒ›
‘–Šƒ˜‹‰ƒ›’Š›•‹…ƒŽ’”‡•‡…‡‹†‹ƒǤ
Ȉ ‡…–‹‘ͳͳͷ’”‘˜‹†‡•ˆ‘”–ƒš‹‰ˆ‘”‡‹‰†‹˜‹†‡†•”‡…‡‹˜‡†ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›ƒ––Š‡”ƒ–‡‘ˆͳͷΨ
’Ž—••—”…Šƒ”‰‡̷͹Ψƒ†Š‡ƒŽ–Šƒ†‡†—…ƒ–‹‘…‡••̷ͶΨǤ



ȋŠ‡•‡ƒ”‡‡ƒ–ˆ‘””‡…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘ǤȌ

—Ž–‹’Ž‡Š‘‹…‡—‡•–‹‘•Dz•dz
ͳǤ ƒš…”‡†‹–‹”‡•’‡…–‘ˆ’ƒ‹†ƒ•’‡”•‡…–‹‘ͳͳͷ ™‹ŽŽ„‡ƒŽŽ‘™‡†‘Ž›‹–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š
–Š‡–ƒš’ƒ›ƒ„Ž‡‘–Š‡–‘–ƒŽ‹…‘‡ƒ––Š‡‘”ƒŽ”ƒ–‡‹•Ȃ
ȋƒȌ ‘”‡–Šƒ–Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”•‡…–‹‘ͳͳͷ 
ȋ„Ȍ ‡••–Šƒ–Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”•‡…–‹‘ͳͳͷ 
ȋ…Ȍ “—ƒŽ–‘–Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”•‡…–‹‘ͳͳͷ 
ȋ†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡Ǥ
•™‡”ǣȋƒȌ‘”‡–Šƒ–Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”•‡…–‹‘ͳͳͷ 
ʹǤ ‡–”‘–†Ǥǡƒ†‘‡•–‹……‘’ƒ›ǡ‹•ƒ••‡••‡†™‹–Šƒ–‘–ƒŽ‹…‘‡‘ˆ•ǤͳͳǤʹͷ…”‘”‡ǤŠ‡•—”…Šƒ”‰‡
’ƒ›ƒ„Ž‡„›–Š‡…‘’ƒ›•ŠƒŽŽ„‡ƒ––Š‡”ƒ–‡‘ˆȂ
ȋƒȌʹΨȋ„ȌͷΨ
ȋ…ȌͳͲΨȋ†ȌͳʹΨǤ
•™‡”ǣȋ†ȌͳʹΨ
Lesson 8 ȈŽƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒš…‹†‡…‡‘‘’ƒ‹‡• Ͷͻͳ

͵Ǥ ‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘†‘‡•–‹……‘’ƒ›™‹ŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡•Šƒ”‡Š‘Ž†‡”ƒ†
™‹ŽŽ„‡…Šƒ”‰‡†–‘–ƒšƒ–Ȃ
ȋƒȌͳͷΨȋ„ȌͳͺǤͷΨ
ȋ…Ȍ͵ͲΨȋ†Ȍ‘”ƒŽ•Žƒ„”ƒ–‡‘ˆ–ƒšƒ•ƒ’’Ž‹…ƒ„Ž‡–‘ƒ••‡••‡‡Ǥ
•™‡”ǣȋ†Ȍ‘”ƒŽ•Žƒ„”ƒ–‡‘ˆ–ƒšƒ•ƒ’’Ž‹…ƒ„Ž‡–‘ƒ••‡••‡‡
ͶǤ ”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͳͷ ƒ”‡ƒ’’Ž‹…ƒ„Ž‡‹…ƒ•‡‘ˆȂ
ȋƒȌ ‘‡•–‹……‘’ƒ‹‡•‘Ž›ȋ„Ȍ ‘”‡‹‰…‘’ƒ‹‡•‘Ž›
ȋ…Ȍ ŽŽ…‘’ƒ‹‡•  ȋ†Ȍ Ž‘•‡Ž›Š‡Ž†…‘’ƒ‹‡•Ǥ
•™‡”ǣȋ…ȌŽŽ…‘’ƒ‹‡•Ǥ
ͷǤ ‘”…‘’—–‹‰–Š‡‘‘”‘ϐ‹–—†‡”•‡…–‹‘ͳͳͷ ǡ™Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•‘–ƒ††‡†„ƒ…–‘–Š‡
’”‘ϐ‹–•ǫ
ȋƒȌ …‘‡Ǧƒš
ȋ„Ȍ ”‘˜‹•‹‘ˆ‘”ƒš
ȋ…Ȍ ‹˜‹†‡†‹•–”‹„—–‹‘ƒšȀͳͳͷǦ
ȋ†Ȍ ‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒš
•™‡”ǣȋ†Ȍ‡…—”‹–‹‡•”ƒ•ƒ…–‹‘ƒš
͸Ǥ ”Ǥ
ƒƒ’ƒ–Š›ƒ”‡•‹†‡–‹†‹˜‹†—ƒŽ”‡…‡‹˜‡†•ǤͳʹŽƒŠ•†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͲǦʹͳ„›™ƒ›‘ˆ
†‹˜‹†‡†ˆ”‘†‘‡•–‹……‘’ƒ‹‡•ǤŠ‡ƒ’’Ž‹…ƒ„Ž‡”ƒ–‡‘ˆ†‹˜‹†‡††‹•–”‹„—–‹‘–ƒš—†‡”‡…–‹‘ͳͳͷǦ
‘–Š‡†‹˜‹†‡††‡…Žƒ”‡†•ŠƒŽŽ„‡ǣ
ȋƒȌ ͳͲǤͶΨ ȋ„Ȍ ͵ͳǤʹΨ
ȋ…Ȍ ‹Ž  ȋ†Ȍ ͳͷǤ͸ͲΨ
•™‡”ǣȋ…Ȍ‹Ž
͹Ǥ †‘‡•–‹……‘’ƒ›™Š‘•‡–—”‘˜‡”ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲͳͺǦͳͻ•ǤͶʹͲ…”‘”‡•Ǣˆ‘”’”‡˜‹‘—•›‡ƒ”
ʹͲͳͻǦʹͲ•Ǥ͵ͺͲ…”‘”‡ƒ†ˆ‘”’”‡˜‹‘—•›‡ƒ”ʹͲʹͲǦʹͳ•ǤͳʹͲ…”‘”‡•Ǥ–•–‘–ƒŽ‹…‘‡ȋ…‘’—–‡†Ȍˆ‘”–Š‡
ƒ••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹ‹••Ǥ͵Ͳ…”‘”‡•ǤŠ‡”ƒ–‡‘ˆ‹…‘‡–ƒšƒ’’Ž‹…ƒ„Ž‡ˆ‘”•—…Š…‘’ƒ›ȋ™‹–Š‘—–
…‡••Ȍ‹•ǣ
ȋƒȌ ͵ͲΨ ȋ„ ʹʹΨ
ȋ…Ȍ ͳͷΨ ȋ†Ȍ ʹͷΨ
•™‡”ǣȋ†ȌʹͷΨ
ͺǤ ˜–Ǥ–†ǤŠƒ•ƒ„—•‹‡••Ž‘••‘ˆ•ǤͳͲŽƒŠǤŠ‡”‡‹•—‡š’Žƒ‹‡†•Šƒ”‡ƒ’’Ž‹…ƒ–‹‘‘‡›–‘–Š‡
–—‡‘ˆ•ǤʹͷŽƒŠǤŠ‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡…‘’ƒ›™‹ŽŽ„‡ǣ
ȋƒȌ •ǤͳͷŽƒŠ ȋ„Ȍ •Ǥ͵ͷŽƒŠ
ȋ…Ȍ •ǤʹͷŽƒŠ ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ
ͻǤ ”‘˜‹•‹‘•‘ˆ‹‹—Ž–‡”ƒ–‡ƒšȋȌƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡…‘’ƒ‹‡•™Š‹…Šƒ”‡ǣ
ȋ‹Ȍ †‹ƒ…‘’ƒ‹‡•
ȋ‹‹Ȍ ‘”‡‹‰…‘’ƒ‹‡•‹…‡”–ƒ‹•‹–—ƒ–‹‘•
ȋ‹‹‹Ȍ 
Ͷͻʹ Lesson 8 Ȉ EP-TL

ȋƒȌ ȋ‹Ȍƒ†ȋ‹‹‹Ȍ ȋ„Ȍ ȋ‹Ȍƒ†ȋ‹‹Ȍ

ȋ…Ȍ ŽŽ–Š‡–Š”‡‡ȋ†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ„Ȍ
ͳͲǤ ‘”†‡”–‘„‡‡–‹–Ž‡†–‘…‘…‡••‹‘ƒŽ”ƒ–‡‘ˆ–ƒšˆ‘”†‹˜‹†‡†”‡…‡‹˜‡†ˆ”‘ƒˆ‘”‡‹‰…‘’ƒ›ǡ–Š‡
†‹ƒ…‘’ƒ›•Š‘—Ž†Šƒ˜‡–Š‡ˆ‘ŽŽ‘™‹‰‹‹—•Šƒ”‡Š‘Ž†‹‰‹•—…Šˆ‘”‡‹‰…‘’ƒ›Ȃ
ȋƒȌ ͳͲΨ ȋ„Ȍ ʹͷΨ
ȋ…Ȍ ʹ͸Ψ ȋ†Ȍ ͷͳΨǤ
•™‡”ǣȋ…Ȍʹ͸Ψ
ͳͳǤ †‹ƒ…‘’ƒ›Šƒ˜‹‰͵ͲΨ˜‘–‹‰’‘™‡”‹ƒˆ‘”‡‹‰…‘’ƒ›”‡…‡‹˜‡††‹˜‹†‡†‘ˆ•ǤͳͲŽƒŠ
ˆ”‘–Š‡ˆ‘”‡‹‰…‘’ƒ›ǤŠ‡†‹˜‹†‡†•‘”‡…‡‹˜‡†„›–Š‡†‹ƒ…‘’ƒ›‹•Ȃ
ȋƒȌ š‡’–   ȋ„Ȍ ƒšƒ„Ž‡̷ͳͷΨ
ȋ…Ȍ ƒšƒ„Ž‡ƒ––Š‡”‡‰—Žƒ””ƒ–‡• ȋ†Ȍ ƒšƒ„Ž‡̷ʹͲΨǤ
•™‡”ǣȋ„Ȍƒšƒ„Ž‡̷ͳͷΨǤ

  



Ȉ ‹”‡…–ƒš‡•ƒ™ƒ†”ƒ…–‹…‡
—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ
Ȉ ‹”‡…–ƒš‡•‡ƒ†›‡…‘‡”™‹–ŠƒšŽƒ‹‰
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
—„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES

Ȉ …‘‡ƒš…–ǡͳͻ͸ͳǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š
Ȉ …‘‡ƒš—Ž‡•ǡͳͻ͸ʹǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•ǦͷͿͼ͸Ǥƒ•’š
Ȉ ‹”…—Žƒ”•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
Lesson 9 Procedural Compliance
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ 
Ȉ Šƒ–‹•–ƒš†‡†—…–‡†ƒ–•‘—”…‡ƒ†–ƒš…‘ŽŽ‡…–‡†ƒ–•‘—”…‡ǫ
Ȉ 
Ȉ Šƒ–ƒ”‡–Š‡”ƒ–‡•‘ˆƒ†—†‡”˜ƒ”‹‘—•’”‘˜‹•‹‘‘ˆ
Ȉ  –Š‡…‘‡ƒš…–ǡͳͻ͸ͳǫ
Ȉ  Ȉ Š‡†—‡†ƒ–‡•ˆ‘”’ƒ›‡–‘ˆƒ†
Ȉ †˜ƒ…‡ƒš Ȉ Šƒ–‹•†˜ƒ…‡ƒšƒ†‡Žˆ••‡••‡–ƒšǫ
Ȉ ‡Žˆ••‡••‡–ƒš Ȉ Š‡†—‡†ƒ–‡•ˆ‘”’ƒ›‡–‘ˆ†˜ƒ…‡ƒšƒ†‡Žˆ
••‡••‡–ƒš
Ȉ ‡˜‹•‡†‡–—”
Ȉ Š‡’”‘˜‹•‹‘•”‡Žƒ–‡†–‘‡–—”•ǡ‹‰ƒ–—”‡ƬǦ ‹Ž‹‰
Ȉ ‡Žƒ–‡†‡–—”
Ȉ ‡‡ƒ†–‡”‡•–
Ȉ ‡ˆ‡…–‹˜‡‡–—”
Ȉ ‘ŽŽ‡…–‹‘ƒ†‡…‘˜‡”›‘ˆƒš
Ȉ ‡ˆ—†•

Lesson Outline
Ȉ ‡”ƒ‡–……‘—–—„‡” Ȉ –‡”‡•–‘ˆ„‡Žƒ–‡†
Ǯǯ ’ƒ›‡–‘ˆ…‘‡ƒš
Ȉ ƒš‡†—…–‹‘……‘—– ȏ‡…–‹‘ʹʹͲȋʹȌȐ
—„‡”Ǯǯ Ȉ –‡”‡•–ˆ‘”†‡ˆƒ—Ž–‹
Ȉ ƒ›‡–‘ˆƒš ˆ—”‹•Š‹‰‡–—”‘ˆ
…‘‡ȏ‡…–‹‘ʹ͵ͶȐ
Ȉ ƒš‡†—…–‹‘ƒ–‘—”…‡
Ǯǯ
Ȉ ƒš‘ŽŽ‡…–‹‘ƒ–‘—”…‡Ǯǯ
Ȉ ‹‡‹‹–ˆ‘”†‡’‘•‹–‹‰‘ˆ
Ȉ –‡”‡•–ˆ‘”†‡ˆƒ—Ž–‹
’ƒ›‡–‘ˆ†˜ƒ…‡ƒš
ȏ‡…–‹‘ʹ͵ͶȐ
Ȉ –‡”‡•–ˆ‘”†‡ˆ‡”‡–‘ˆ

†˜ƒ…‡ƒšȏ‡…–‹‘
Ȉ  ‘”• ʹ͵ͶȐ
Ȉ Šƒ”– Ȉ ‡‡•ˆ‘”†‡Žƒ›‹
Ȉ ‹‹—–Š”‡•Š‘Ž†Ž‹‹– ˆ—”‹•Š‹‰”‡–—”•‘ˆ
—’–‘™Š‹…Š‘– ‹…‘‡
ƒ’’Ž‹…ƒ„Ž‡ Ȉ ‘ŽŽ‡…–‹‘Ƭ‡…‘˜‡”›‘ˆƒš
Ȉ †˜ƒ…‡ƒš Ȉ ‡ˆ—†•
Ȉ ‡ŽˆǦ••‡••‡–ƒšǮǯ Ȉ ƒ•‡ƒ™
Ȉ ‡–—”• Ȉ 
Ȉ ‹‰‹‰‘ˆ‡–—”• Ȉ 
Ȉ ‡‡ƒ†‹–‡”‡•– Ȉ   

Ȉ  
494 Lesson 9 Ȉ EP-TL

Regulatory Framework

Sections Income Tax Act, 1961

‡…–‹‘ͳ͵ͻ ‡”ƒ‡–……‘—–—„‡”

‡…–‹‘ͳ͵ͻ —‘–‹‰‘ˆƒ†Šƒƒ”—„‡”
‡…–‹‘ͳͻʹ ‘ƒŽƒ”›

‡…–‹‘ͳͻʹ ‘”‡ƒ–—”‡‹–Š†”ƒ™ƒŽˆ”‘’Ž‘›‡‡•ǯ”‘˜‹†‡– —†…Š‡‡ȋ Ȍ

‡…–‹‘ͳͻ͵ ‘–‡”‡•–‘‡…—”‹–‹‡•
‡…–‹‘ͳͻͶ ‘‹˜‹†‡†
‡…–‹‘ͳͻͶ ‘–‡”‡•–‘–Š‡”–Šƒ–‡”‡•–‘‡…—”‹–‹‡•
‡…–‹‘ͳͻͶ ‘‹‹‰•ˆ”‘‘––‡”‹‡•‘””‘••™‘”†—œœŽ‡•
‡…–‹‘ͳͻͶ ‘‹‹‰•ˆ”‘‘”•‡ƒ…‡•
‡…–‹‘ͳͻͶ ‘ƒ›‡––‘‡•‹†‡–‘–”ƒ…–‘”‘”—„Ǧ…‘–”ƒ…–‘”
‡…–‹‘ͳͻͶ ‘•—”ƒ…‡‘‹••‹‘
‡…–‹‘ͳͻͶ ‘ƒ›‡–‹”‡•’‡…–‘ˆ‹ˆ‡•—”ƒ…‡’‘Ž‹…›
‡…–‹‘ͳͻͶ ‘ƒ›‡––‘ƒ‘Ǧ”‡•‹†‡–•’‘”–•‡Ȁ•’‘”–•ƒ••‘…‹ƒ–‹‘
‡…–‹‘ͳͻͶ ‘ƒ›‡–‹”‡•’‡…–‘ˆ‡’‘•‹–•—†‡”ƒ–‹‘ƒŽƒ˜‹‰•…Š‡‡‡–…Ǥ
‡…–‹‘ͳͻͶ
‘‘‹••‹‘‘•ƒŽ‡‘ˆŽ‘––‡”›–‹…‡–•
‡…–‹‘ͳͻͶ ‘‘‹••‹‘‘””‘‡”ƒ‰‡
‡…–‹‘ͳͻͶ ‘‡–
‡…–‹‘ͳͻͶǦ ‘ƒ›‡–‘–”ƒ•ˆ‡”‘ˆ…‡”–ƒ‹‹‘˜ƒ„Ž‡’”‘’‡”–›‘–Š‡”–Šƒƒ‰”‹…—Ž–—”ƒŽŽƒ†
‡…–‹‘ͳͻͶ ‘’ƒ›‡–‘ˆ‡–„›…‡”–ƒ‹†‹˜‹†—ƒŽ•Ȁ
‡…–‹‘ͳͻͶǦ ‘ ‘‹–‡˜‡Ž‘’‡–”‘Œ‡…–
‡…–‹‘ͳͻͶ ‘”‘ˆ‡••‹‘ƒŽƒ†‡…Š‹…ƒŽ ‡‡•
‡…–‹‘ͳͻͶ ‘…‘‡‹”‡•’‡…–‘ˆ—‹–•
‡…–‹‘ͳͻͶ ‘ƒ›‡–‘ˆ‘’‡•ƒ–‹‘‘ƒ…“—‹•‹–‹‘‘ˆƒ’‹–ƒŽ••‡–
‡…–‹‘ͳͻͶ ‘…‘‡„›™ƒ›‘ˆ‹–‡”‡•–ˆ”‘‹ˆ”ƒ•–”—…–—”‡†‡„–ˆ—†
‡…–‹‘ͳͻͶ ‘…‘‡„›™ƒ›‘ˆ‹–‡”‡•–ˆ”‘†‹ƒ…‘’ƒ›‡‰ƒ‰‡†‹…‡”–ƒ‹—•‹‡••
‡…–‹‘ͳͻͶ ‘…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘…‡”–ƒ‹„‘†•ƒ†
‘˜‡”‡–•‡…—”‹–‹‡•
‡…–‹‘ͳͻͶ ‘ƒ›‡–„›†‹˜‹†—ƒŽȀ –‘…‘–”ƒ…–‘”•ƒ†’”‘ˆ‡••‹‘ƒŽ•
‡…–‹‘ͳͻͶ ‘…ƒ•Š™‹–Š†”ƒ™ƒŽ–‘†‹•…‘—”ƒ‰‡…ƒ•Š–”ƒ•ƒ…–‹‘•
‡…–‹‘ͳͻͶ ‘ƒ›‡–•‘ˆ…‡”–ƒ‹•—•„›‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”–‘‡Ǧ…‘‡”…‡’ƒ”–‹…‹’ƒ–
‡…–‹‘ͳͻͶ ‡†—…–‹‘‘ˆƒš‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‡‹‘”‹–‹œ‡

‡…–‹‘ͳͻͶ ‘’ƒ›‡–‘ˆ…‡”–ƒ‹•—ˆ‘”’—”…Šƒ•‡‘ˆ
‘‘†•

‡…–‹‘ͳͻͷ ‘ƒ›‡–•‘ˆ‘–Š‡”•—•–‘‘Ǧ‡•‹†‡–•
Lesson 9 Ȉ Procedural Compliance 495

‡…–‹‘ͳͻͷ …‘‡’ƒ›ƒ„Ž‡Dz‡–‘ˆƒš
–‡”‡•– ‘” †‹˜‹†‡† ‘” ‘–Š‡” •—• ’ƒ›ƒ„Ž‡ –‘
‘˜‡”‡–ǡ ‡•‡”˜‡ ƒ ‘” …‡”–ƒ‹
‡…–‹‘ͳͻ͸
…‘”’‘”ƒ–‹‘•
‡…–‹‘ͳͻ͸ ‘…‘‡ˆ”‘—‹–•–‘‘ˆˆ•Š‘”‡ˆ—†
‡…–‹‘ͳͻ͸ ‘…‘‡ˆ”‘ˆ‘”‡‹‰…—””‡…›„‘†•‘”•Šƒ”‡•‘ˆ†‹ƒ‘’ƒ›
‡…–‹‘ͳͻ͸ ‘…‘‡‘ˆ ‘”‡‹‰•–‹–—–‹‘ƒŽ˜‡•–‘”•ˆ”‘•‡…—”‹–‹‡•
‡…–‹‘ͳͻ͹ ‘†‡†—…–‹‘–‘„‡ƒ†‡‹…‡”–ƒ‹…ƒ•‡•
‡…–‹‘ʹͲ͵ ‡”–‹ϐ‹…ƒ–‡‘ˆ–ƒš†‡†—…–‡†
‡…–‹‘ʹͲͳ ‘•‡“—‡…‡‹–Š‡‡˜‡–‘ˆ†‡ˆƒ—Ž–
‡…–‹‘ʹͲ͸ ƒš‘ŽŽ‡…–‹‘ƒ–‘—”…‡ȋȌ
‡…–‹‘ʹͲ͸ š‡’–‹‘–‘‘Ǧ‡•‹†‡–•ˆ”‘”‡“—‹”‡‡–‘ˆˆ—”‹•Š‹‰
‡…–‹‘ ʹͲ͸ Ȁ
Ȁˆ‘”‘Ǧϐ‹Ž‡”•‘ˆ…‘‡ƒš‡–—”
ʹͲ͸
‡…–‹‘ͳ͵ͻȋͳȌ ‡–—”‘ˆ…‘‡
‡…–‹‘ͳ͵ͻȋ͵Ȍ ‡–—”‘ˆ‘••
‡…–‹‘ͳ͵ͻȋͶȌ ‡Žƒ–‡†‡–—”
‡…–‹‘ͳ͵ͻȋͶȌ ‡–—”‘ˆ…‘‡‘ˆ…Šƒ”‹–ƒ„Ž‡–”—•–ƒ†‹•–‹–—–‹‘•
‡…–‹‘ͳ͵ͻȋͶȌ ‡–—”‘ˆ…‘‡‘ˆ‘Ž‹–‹…ƒŽƒ”–›
‡…–‹‘ͳ͵ͻȋͶȌ ‡–—”‘ˆ…‘‡‘ˆ’‡…‹ϐ‹‡†••‘…‹ƒ–‹‘Ȁ•–‹–—–‹‘•
‡…–‹‘ͳ͵ͻȋͷȌ ‡˜‹•‡†‡–—”
‡…–‹‘ͳ͵ͻȋͻȌ ‡ˆ‡…–‹˜‡‡–—”
‡…–‹‘ͳͶͲ ‹‰‹‰‘ˆ‡–—”
‡…–‹‘ͳ͵ͻ …Š‡‡–‘ˆƒ…‹Ž‹–ƒ–‡•—„‹••‹‘‘ˆ”‡–—”•–Š”‘—‰Š–ƒš”‡–—”’”‡’ƒ”‡”•
‡…–‹‘ʹ͵Ͷ –‡”‡•–ˆ‘”†‡ˆƒ—Ž–‹ˆ—”‹•Š‹‰‡–—”‘ˆ…‘‡
‡…–‹‘ʹ͵Ͷ –‡”‡•–ˆ‘”†‡ˆƒ—Ž–‹’ƒ›‡–‘ˆ†˜ƒ…‡ƒš
‡…–‹‘ʹ͵Ͷ –‡”‡•–ˆ‘”†‡ˆ‡”‡–‘ˆ†˜ƒ…‡ƒš
‡…–‹‘ʹ͵Ͷ ‡‡•ˆ‘”‡Žƒ›‹ —”‹•Š‹‰‡–—”‘ˆ…‘‡

The Tax on income is collected in four ways- Tax Deduction at source (TDS), or Tax Collection at source
(TCS), Advance Tax, direct payment of Income Tax by the assessee on self-assessment basis and payment
ƒˆ–‡”–Š‡ƒ••‡••‡–‹•ƒ†‡„›–Š‡••‡••‹‰ˆϔ‹…‡”Ǥ
 496 Lesson 9 Ȉ EP-TL

PERMANENT ACCOUNT NUMBER [SECTION 139A]

˜‡”› ’‡”•‘ǡ ™Š‘ Šƒ• ‘– „‡‡ ƒŽŽ‘––‡† ƒ› ’‡”ƒ‡– ƒ……‘—– —„‡”ǡ ‹• ‘„Ž‹‰‡† –‘ ‘„–ƒ‹ ’‡”ƒ‡–
ƒ……‘—–—„‡”ǡ‹ˆǢ
Ȉ ‹ˆ Š‹• –‘–ƒŽ ‹…‘‡ ƒ••‡••ƒ„Ž‡ †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‡š…‡‡†• –Š‡ ƒš‹— ƒ‘—– ™Š‹…Š ‹• ‘–
…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘”
Ȉ ƒ› ’‡”•‘ …ƒ””›‹‰ ‘ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ™Š‘•‡ –‘–ƒŽ •ƒŽ‡• –—”‘˜‡” ‘” ‰”‘•• ”‡…‡‹’–• ƒ”‡ ‘” ‹•
Ž‹‡Ž›–‘‡š…‡‡†•ǤͷǡͲͲǡͲͲͲ‹ƒ›’”‡˜‹‘—•›‡ƒ”‘”
Ȉ ‹•”‡“—‹”‡†–‘ˆ—”‹•Šƒ”‡–—”‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻȋͶȌǡ‹Ǥ‡Ǥǡ–”—•–Ȁ…Šƒ”‹–ƒ„Ž‡‹•–‹–—–‹‘•Ǥ
Ȉ ˜‡”›‘Ǧ‹†‹˜‹†—ƒŽ”‡•‹†‡–’‡”•‘•ȋ‡–‹–›Ȍƒ†’‡”•‘•ƒ••‘…‹ƒ–‡†™‹–Š–Š‡•ŠƒŽŽƒ’’Ž›ˆ‘”‹ˆ–Š‡
ϐ‹ƒ…‹ƒŽ –”ƒ•ƒ…–‹‘ ‡–‡”‡† ‹–‘ „› –Š‡ †—”‹‰ –Š‡ ϐ‹ƒ…‹ƒŽ ›‡ƒ” ‡š…‡‡†• •Ǥ ʹǡͷͲǡͲͲͲǤ ‡”•‘•
ƒ••‘…‹ƒ–‡† ™‹–Š •—…Š ”‡•‹†‡– ‡–‹–› ‹…Ž—†‡• ‡˜‡”› ƒƒ‰‹‰ †‹”‡…–‘”ǡ †‹”‡…–‘”ǡ ’ƒ”–‡”ǡ –”—•–‡‡ǡ ƒ—–Š‘”ǡ
ˆ‘—†‡”ǡƒ”–ƒǡ…Š‹‡ˆ‡š‡…—–‹˜‡‘ˆϐ‹…‡”ǡ’”‹…‹’ƒŽ‘ˆϐ‹…‡”‘”‘ˆϐ‹…‡„‡ƒ”‡”‘ˆ•—…Š‡–‹–›Ǥ
Ȉ ›’‡”•‘™Š‘‹–‡†•–‘‡–‡”‹–‘•—…Š–”ƒ•ƒ…–‹‘ƒ•ƒ›„‡’”‡•…”‹„‡†„›‹–Š‡‹–‡”‡•–‘ˆ
”‡˜‡—‡Ǥ

‡•‹†‡•ƒ„‘˜‡…ƒ•‡•ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒŽ•‘ƒŽŽ‘–ƒ’‡”ƒ‡–ƒ……‘—–—„‡”–‘ƒ›‘–Š‡”’‡”•‘„›™Š‘
–ƒš‹•’ƒ›ƒ„Ž‡Ǥ›‘–Š‡”’‡”•‘ƒ›ƒŽ•‘ƒ’’Ž›ˆ‘”ƒ’‡”ƒ‡–ƒ……‘—–—„‡”Ǥ
Instant PAN : Šƒ•Žƒ—…Š‡†ƒ‡™ˆ—…–‹‘ƒŽ‹–›‘–Š‡‡Ǧϐ‹Ž‹‰’‘”–ƒŽ™Š‹…ŠƒŽŽ‘–•ƒ–‘–Š‡‹†‹˜‹†—ƒŽ
ƒ••‡••‡‡ ‘ –Š‡ „ƒ•‹• ‘ˆ Š‹• ƒ†Šƒƒ” —„‡”Ǥ Š‹• ˆƒ…‹Ž‹–› …ƒ „‡ —•‡† „› ƒ ƒ••‡••‡‡ ‘Ž› ‹ˆ –Š‡ ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ƒ”‡ˆ—Žϐ‹ŽŽ‡†ǣ
ȋƒȌ ‡Šƒ•‡˜‡”„‡‡ƒŽŽ‘––‡†ƒ
ȋ„Ȍ ‹•‘„‹Ž‡—„‡”‹•Ž‹‡†™‹–ŠŠ‹•ƒ†Šƒƒ”—„‡”
ȋ…Ȍ ‹•…‘’Ž‡–‡†ƒ–‡‘ˆ„‹”–Š‹•ƒ˜ƒ‹Žƒ„Ž‡‘–Š‡ƒ†Šƒƒ”…ƒ”†
ȋ†Ȍ ‡•Š‘—Ž†‘–„‡ƒ‹‘”‘–Š‡†ƒ–‡‘ˆƒ’’Ž‹…ƒ–‹‘ˆ‘”Ǥ

‡”ƒ‡–……‘—–—„‡”ȋȌ‹•ƒ–‡Ǧ†‹‰‹–ƒŽ’Šƒ—‡”‹…—„‡”ǡ‹••—‡†‹–Š‡ˆ‘”‘ˆƒŽƒ‹ƒ–‡†…ƒ”†ǡ „›
–Š‡…‘‡ƒš‡’ƒ”–‡–ǤŠ‡•–”—…–—”‡‘ˆ–Š‡–‡…Šƒ”ƒ…–‡”•‘ˆ‹•ƒ•—†‡”ǣ
ȋƒȌ Š‡ϐ‹”•––Š”‡‡…Šƒ”ƒ…–‡”•”‡’”‡•‡––Š‡ƒŽ’Šƒ„‡–‹…•‡”‹‡•”—‹‰ˆ”‘–‘Ǥ
ȋ„Ȍ Š‡ ˆ‘—”–Š …Šƒ”ƒ…–‡” ‘ˆ  ”‡’”‡•‡–• –Š‡ •–ƒ–—• ‘ˆ –Š‡  Š‘Ž†‡”ǡ ‹Ǥ‡Ǥǡ Dzdz •–ƒ†• ˆ‘” †‹˜‹†—ƒŽǢ
Dzdz •–ƒ†• ˆ‘” ‘’ƒ›Ǣ Dzdz •–ƒ†• ˆ‘” ‹†— †‹˜‹†‡† ƒ‹Ž› ȋ ȌǢ Dzdz •–ƒ†• ˆ‘”••‘…‹ƒ–‹‘‘ˆ
‡”•‘•ȋȌǢDzdz•–ƒ†•ˆ‘”‘†›‘ˆ†‹˜‹†—ƒŽ•ȋȌǢDz
dz•–ƒ†•ˆ‘”
‘˜‡”‡–‰‡…›Ǣdz dz•–ƒ†•
ˆ‘” ”–‹ϐ‹…‹ƒŽ —”‹†‹…ƒŽ ‡”•‘Ǣ Dzdz •–ƒ†• ˆ‘” ‘…ƒŽ —–Š‘”‹–›Ǣ Dz dz •–ƒ†• ˆ‘” ‹”Ȁ ‹‹–‡† ‹ƒ„‹Ž‹–›
ƒ”–‡”•Š‹’ƒ† Dzdz•–ƒ†•ˆ‘””—•–Ǥ
ȋ…Ȍ ‹ˆ–Š…Šƒ”ƒ…–‡”‘ˆ”‡’”‡•‡–•–Š‡ϐ‹”•–…Šƒ”ƒ…–‡”‘ˆ–Š‡Š‘Ž†‡”ǯ•Žƒ•–ƒ‡Ȁ•—”ƒ‡‹…ƒ•‡‘ˆƒ
‹†‹˜‹†—ƒŽǤ  …ƒ•‡ ‘ˆ ‘Ǧ‹†‹˜‹†—ƒŽ  Š‘Ž†‡”• ϐ‹ˆ–Š …Šƒ”ƒ…–‡” ”‡’”‡•‡–• –Š‡ ϐ‹”•– …Šƒ”ƒ…–‡” ‘ˆ 
Š‘Ž†‡”ǯ•ƒ‡Ǥ
ȋ†Ȍ ‡š–ˆ‘—”…Šƒ”ƒ…–‡”•ƒ”‡•‡“—‡–‹ƒŽ—„‡”•”—‹‰ˆ”‘ͲͲͲͳ–‘ͻͻͻͻǤ
ȋ‡Ȍ ƒ•–…Šƒ”ƒ…–‡”ǡ‹Ǥ‡Ǥǡ–Š‡–‡–Š…Šƒ”ƒ…–‡”‹•ƒƒŽ’Šƒ„‡–‹……Š‡…†‹‰‹–Ǥ

 ‡ƒ„Ž‡• –Š‡ †‡’ƒ”–‡– –‘ Ž‹ ƒŽŽ –”ƒ•ƒ…–‹‘• ‘ˆ –Š‡ Dz’‡”•‘dz ™‹–Š –Š‡ †‡’ƒ”–‡–Ǥ Š‡•‡ –”ƒ•ƒ…–‹‘•
‹…Ž—†‡–ƒš’ƒ›‡–•ǡȀ…”‡†‹–•ǡ”‡–—”•‘ˆ‹…‘‡ǡ•’‡…‹ϐ‹‡†–”ƒ•ƒ…–‹‘•ǡ…‘””‡•’‘†‡…‡ǡƒ†•‘‘Ǥǡ
–Š—•ǡƒ…–•ƒ•ƒ‹†‡–‹ϐ‹‡”ˆ‘”–Š‡Dz’‡”•‘dz™‹–Š–Š‡–ƒš†‡’ƒ”–‡–Ǥ
 ™ƒ• ‹–”‘†—…‡† –‘ ˆƒ…‹Ž‹–ƒ–‡ Ž‹‹‰ ‘ˆ ˜ƒ”‹‘—• †‘…—‡–•ǡ ‹…Ž—†‹‰ ’ƒ›‡– ‘ˆ –ƒš‡•ǡ ƒ••‡••‡–ǡ –ƒš
†‡ƒ†ǡ –ƒš ƒ””‡ƒ”• ‡–…Ǥ ”‡Žƒ–‹‰ –‘ ƒ ƒ••‡••‡‡ǡ –‘ ˆƒ…‹Ž‹–ƒ–‡ ‡ƒ•› ”‡–”‹‡˜ƒŽ ‘ˆ ‹ˆ‘”ƒ–‹‘ ƒ† –‘ ˆƒ…‹Ž‹–ƒ–‡
ƒ–…Š‹‰ ‘ˆ ‹ˆ‘”ƒ–‹‘ ”‡Žƒ–‹‰ –‘ ‹˜‡•–‡–ǡ ”ƒ‹•‹‰ ‘ˆ Ž‘ƒ• ƒ† ‘–Š‡” „—•‹‡•• ƒ…–‹˜‹–‹‡• ‘ˆ –ƒš’ƒ›‡”•
…‘ŽŽ‡…–‡†–Š”‘—‰Š˜ƒ”‹‘—••‘—”…‡•ǡ„‘–Š‹–‡”ƒŽƒ•™‡ŽŽƒ•‡š–‡”ƒŽǡˆ‘”†‡–‡…–‹‰ƒ†…‘„ƒ–‹‰–ƒš‡˜ƒ•‹‘ƒ†
™‹†‡‹‰‘ˆ–ƒš„ƒ•‡Ǥ
 Lesson 9 Ȉ Procedural Compliance 497

Inter-changeability of PAN & Aadhaar and mandatory quoting in prescribed transactions

‘‡•—”‡‡ƒ•‡‘ˆ…‘’Ž‹ƒ…‡ǡ‹–‹•’”‘˜‹†‡†ˆ‘”‹–‡”Ǧ…Šƒ‰‡ƒ„‹Ž‹–›‘ˆ™‹–Š–Š‡ƒ†Šƒƒ”—„‡”Ǥ……‘”†‹‰Ž› –Š‡
’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳ͵ͻ™‡”‡ƒ‡†‡†•‘ƒ•–‘’”‘˜‹†‡–Šƒ–ǡǦ
ȋ‹Ȍ ‡˜‡”›’‡”•‘™Š‘‹•”‡“—‹”‡†–‘ˆ—”‹•Š‘”‹–‹ƒ–‡‘”“—‘–‡Š‹•—†‡”–Š‡…–ǡƒ†™Š‘ǡŠƒ•‘–„‡‡
ƒŽŽ‘––‡†ƒ„—–’‘••‡••‡•–Š‡ƒ†Šƒƒ”—„‡”ǡƒ›ˆ—”‹•Š‘”‹–‹ƒ–‡‘”“—‘–‡Š‹•ƒ†Šƒƒ” —„‡”‹
Ž‹‡—‘ˆǡƒ†•—…Š’‡”•‘•ŠƒŽŽ„‡ƒŽŽ‘––‡†ƒ‹–Š‡’”‡•…”‹„‡†ƒ‡”Ǣ
ȋ‹‹Ȍ ‡˜‡”› ’‡”•‘ ™Š‘ Šƒ• „‡‡ ƒŽŽ‘––‡† ƒ ǡ ƒ† ™Š‘ Šƒ• Ž‹‡† Š‹• ƒ†Šƒƒ” —„‡” —†‡” •‡…–‹‘
ͳ͵ͻǡƒ›ˆ—”‹•Š‘”‹–‹ƒ–‡‘”“—‘–‡Š‹•ƒ†Šƒƒ”—„‡”‹Ž‹‡—‘ˆƒǤ

Process to apply for PAN

…‘‡ƒš‡’ƒ”–‡–Šƒ•ƒ—–Š‘”‹•‡†ˆ”ƒ•–”—…–—”‡‡…Š‘Ž‘‰›ƒ†‡”˜‹…‡•‹‹–‡†ȋȌƒ†ƒ–‹‘ƒŽ
‡…—”‹–‹‡• ‡’‘•‹–‘”› ‹‹–‡† ȋȌ –‘ •‡–Ǧ—’ ƒ† ƒƒ‰‡  ‡”˜‹…‡ ‡–‡”•Ǥ  ƒ†  Šƒ˜‡
‡•–ƒ„Ž‹•Š‡†‡”˜‹…‡‡–‡”•ƒ† ƒ…‹Ž‹–ƒ–‹‘‡–‡”•ƒ–˜ƒ”‹‘—•’Žƒ…‡•‹ƒŒ‘”…‹–‹‡•‘ˆ†‹ƒȋŠ‡”‡‹ƒˆ–‡”
”‡ˆ‡””‡†–‘ƒ•ƒ’’Ž‹…ƒ–‹‘…‡–‡”•‘ˆȀȌǤ
Š—•ǡ ƒ ’‡”•‘ ™‹•Š‹‰ –‘ ‘„–ƒ‹…ƒƒ’’Ž›ˆ‘”„›•—„‹––‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”ȋ ‘”ͶͻȀͶͻȌ
ƒŽ‘‰™‹–Š–Š‡”‡Žƒ–‡††‘…—‡–•ƒ†’”‡•…”‹„‡†ˆ‡‡•ƒ––Š‡ƒ’’Ž‹…ƒ–‹‘…‡–‡”‘ˆ‘”Ǥ‘Ž‹‡
ƒ’’Ž‹…ƒ–‹‘…ƒƒŽ•‘„‡ƒ†‡ˆ”‘–Š‡™‡„•‹–‡‘ˆ‘”Ǥ

Quoting of PAN
–•ŠƒŽŽ„‡–Š‡†—–›‘ˆ‡˜‡”›’‡”•‘™Š‘Šƒ•„‡‡ƒŽŽ‘––‡†’‡”ƒ‡–ƒ……‘—–—„‡”–‘“—‘–‡•—…Š—„‡” ‹ƒŽŽ
Š‹• ”‡–—”• ‘” …‘””‡•’‘†‡…‡ ™‹–Š …‘‡ –ƒš ƒ—–Š‘”‹–‹‡•ǡ “—‘–‡ •—…Š —„‡”• ‹ ƒŽŽ …ŠƒŽŽƒ• ˆ‘” –Š‡ ’ƒ›‡–
‘ˆƒ›•—ǡ“—‘–‡•—…Š—„‡”‹ƒŽŽ†‘…—‡–•’‡”–ƒ‹‹‰–‘•—…Š–”ƒ•ƒ…–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†„›–Š‡‘ƒ”†‹
–Š‡‹–‡”‡•–‘ˆ”‡˜‡—‡Ǥ
‘™“—‘–‹‰‹•…‘’—Ž•‘”›‹–Š‡ˆ‘ŽŽ‘™‹‰–”ƒ•ƒ…–‹‘•ǣ
ȋƒȌ ƒŽ‡Ȁ’—”…Šƒ•‡‘ˆƒ›‹‘˜ƒ„Ž‡’”‘’‡”–›˜ƒŽ—‡†ƒ–•ǤͳͲŽƒŠ•‘”‘”‡ǡ˜ƒŽ—‡†„›–Š‡•–ƒ’˜ƒŽ—ƒ–‹‘
ƒ—–Š‘”‹–›—†‡”•‡…–‹‘ͷͲƒ–ƒƒ‘—–‡š…‡‡†‹‰•ǤͳͲŽƒŠ•Ǥ
ȋ„Ȍ ƒŽ‡Ȁ—”…Šƒ•‡‘ˆ‘–‘”˜‡Š‹…Ž‡‘”ƒ˜‡Š‹…Ž‡ȋ‡š…Ž—†‹‰–™‘™Š‡‡Ž‡†˜‡Š‹…Ž‡ǡ‹…Ž—•‹˜‡‘ˆƒ›†‡–ƒ…Šƒ„Ž‡
•‹†‡Ǧ…ƒ”Šƒ˜‹‰ƒ‡š–”ƒ™Š‡‡ŽȌ™Š‹…Š”‡“—‹”‡•”‡‰‹•–”ƒ–‹‘—†‡”‘–‘”‡Š‹…Ž‡•…–ǡͳͻͺͺǤ
ȋ…Ȍ ‹‡†‡’‘•‹–‡š…‡‡†‹‰•ǤͷͲǡͲͲͲ™‹–ŠƒƒȀƒ‹‰‘’ƒ›Ȁƒ‹‰•–‹–—–‹‘Ǥ
ȋ†Ȍ ‡’‘•‹–‡š…‡‡†‹‰•ǤͷͲǡͲͲͲ‹‘•–ˆϐ‹…‡ƒ˜‹‰•ƒǤ
ȋ‡Ȍ ‘–”ƒ…–ˆ‘”•ƒŽ‡Ȁ’—”…Šƒ•‡‘ˆ•‡…—”‹–‹‡•‡š…‡‡†‹‰•ǤͳŽƒŠǤ
ȋˆȌ ’‡‹‰ƒƒ……‘—–ȏ‘–„‡‹‰–‹‡†‡’‘•‹–‡–‹‘‡†‹ȋ…ȌȐ™‹–ŠƒƒȀƒ‹‰‘’ƒ›Ȁƒ‹‰
•–‹–—–‹‘Ǥ
ȋ‰Ȍ ’’Ž‹…ƒ–‹‘ˆ‘”‹•–ƒŽŽƒ–‹‘‘ˆƒ–‡Ž‡’Š‘‡…‘‡…–‹‘‹…Ž—†‹‰‘„‹Ž‡’Š‘‡Ǥ
ȋŠȌ ƒ›‡–•–‘Š‘–‡Ž•‘ˆ„‹ŽŽ•‡š…‡‡†‹‰•ǤͷͲǡͲͲͲƒ–ƒ›‘‡–‹‡Ǥ
ȋ‹Ȍ ƒ›‡–‹…ƒ•Šˆ‘”’—”…Šƒ•‡‘ˆ„ƒ†”ƒˆ–•‘”’ƒ›‘”†‡”•‘”„ƒ‡”ǯ•…Š‡“—‡ˆ‘”ƒƒ‘—–‘ˆ•ǤͷͲǡͲͲͲ
‘”‘”‡†—”‹‰ƒ›‘‡†ƒ›Ǥ
ȋŒȌ ‡’‘•‹–‹…ƒ•Šƒ‰‰”‡‰ƒ–‹‰•ǤͷͲǡͲͲͲ†—”‹‰ƒ›‘‡†ƒ›Ǥ
ȋȌ ƒ›‡–‹…ƒ•Š‹…‘‡…–‹‘™‹–Š–”ƒ˜‡Ž–‘ƒ›ˆ‘”‡‹‰…‘—–”›‘ˆƒƒ‘—–‡š…‡‡†‹‰•ǤͷͲǡͲͲͲƒ–ƒ›
‘‡–‹‡Ǥ
ȋŽȌ ƒ‹‰ƒƒ’’Ž‹…ƒ–‹‘–‘ƒ›„ƒ‹‰…‘’ƒ›‘”–‘ƒ›‘–Š‡”…‘’ƒ›‘”‹•–‹–—–‹‘ˆ‘”‹••—‡‘ˆƒ…”‡†‹–
‘”†‡„‹–…ƒ”†Ǥ
ȋȌ ƒ›‡–‘ˆƒƒ‘—–‘ˆ•ǤͷͲǡͲͲͲ‘”‘”‡–‘ƒ—–—ƒŽ —†ˆ‘”’—”…Šƒ•‡‘ˆ‹–•—‹–•Ǥ
ȋȌ ƒ›‡–‘ˆ•ǤͷͲǡͲͲͲ‘”‘”‡–‘ƒ…‘’ƒ›ˆ‘”ƒ…“—‹”‹‰•Šƒ”‡•‘”†‡„‡–—”‡•‘”„‘†•‹••—‡†„›‹–Ǥ
 498 Lesson 9 Ȉ EP-TL

ȋ‘Ȍ ƒ›‡–‘ˆ•ǤͷͲǡͲͲͲ‘”‘”‡–‘ˆ‘”ƒ…“—‹”‹‰„‘†•‹••—‡†„›‹–Ǥ

ȋ’Ȍ ƒ›‡–‘ˆƒƒ‘—–‘ˆ•ǤͷͲǡͲͲͲ‘”‘”‡ƒ•Ž‹ˆ‡‹•—”ƒ…‡’”‡‹—–‘ƒ‹•—”‡”Ǥ
ȋ“Ȍ ƒ›‡––‘ƒ†‡ƒŽ‡”
ȋ‹Ȍ ‘ˆƒƒ‘—–‘ˆ•ǤͷŽƒŠ‘”‘”‡ƒ–ƒ›‘‡–‹‡ǡ‘”
ȋ‹‹Ȍ ƒ‰ƒ‹•–ƒ„‹ŽŽˆ‘”ƒƒ‘—–‘ˆ•ǤͷŽƒŠ‘”‘”‡ˆ‘”’—”…Šƒ•‡‘ˆ„—ŽŽ‹‘‘”Œ‡™‡ŽŽ‡”›Ǥ
ȋ”Ȍ ƒ›‡–ƒ•Ž‹ˆ‡‹•—”ƒ…‡’”‡‹—–‘ƒ‹•—”‡”‘ˆ•ǤͷͲǡͲͲͲ‘”‘”‡Ǥ
ȋ•Ȍ ƒŽ‡ ‘” ’—”…Šƒ•‡ǡ „› ƒ› ’‡”•‘ ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘ˆ ƒ› ƒ–—”‡ ‘–Š‡” –Šƒ –Š‘•‡ •’‡…‹ϐ‹‡† ƒ„‘˜‡ Ǧ
‘—–‡š…‡‡†‹‰–™‘ŽƒŠ”—’‡‡•ǡ’‡”–”ƒ•ƒ…–‹‘Ǥ

˜‡”› ’‡”•‘ǡ ”‡…‡‹˜‹‰ ƒ› †‘…—‡– ”‡Žƒ–‹‰ –‘ –Š‡ ’”‡•…”‹„‡† –”ƒ•ƒ…–‹‘•ǡ •ŠƒŽŽ ‡•—”‡ –Šƒ– –Š‡ ’‡”ƒ‡–
ƒ……‘—– —„‡” Šƒ• „‡‡ †—Ž› “—‘–‡† ‹ –Š‡ †‘…—‡–Ǥ Š‡ ‘ƒ”† Šƒ• „‡‡ ‡’‘™‡”‡† –‘ ƒ‡ ”—Ž‡• ‹
”‡Žƒ–‹‘–‘–Š‡ˆ‘”ƒ†–Š‡ƒ‡”‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”–Š‡ƒŽŽ‘–‡–‘ˆƒ’‡”ƒ‡–ƒ……‘—–—„‡” ƒ†
–Š‡ ’ƒ”–‹…—Žƒ”• ™Š‹…Š •—…Š ƒ’’Ž‹…ƒ–‹‘ ™‹ŽŽ …‘–ƒ‹ǡ ’”‡•…”‹„‹‰ –Š‡ …ƒ–‡‰‘”‹‡• ‘ˆ –”ƒ•ƒ…–‹‘• ƒ† –Š‡
…ƒ–‡‰‘”‹‡•‘ˆ†‘…—‡–•’‡”–ƒ‹‹‰–‘„—•‹‡••‘”’”‘ˆ‡••‹‘‹™Š‹…Š–Š‡’‡”ƒ‡–ƒ……‘—–—„‡”••ŠƒŽŽŠƒ˜‡
–‘„‡“—‘–‡†„›‡˜‡”›’‡”•‘Ǥ
Š‡ ‡š’”‡••‹‘ Dz••‡••‹‰ ˆϐ‹…‡”dz Šƒ• „‡‡ †‡ϐ‹‡† –‘ ‹…Ž—†‡ ƒ ‹…‘‡ –ƒš ƒ—–Š‘”‹–› –‘ ™Š‘ –Š‡ Œ‘„ ‘ˆ
ƒŽŽ‘––‹‰’‡”ƒ‡–ƒ……‘—–—„‡”•Šƒ•„‡‡ƒ••‹‰‡†Ǥ

Quoting of AADHAAR NUMBER [Section 139AA]

”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ƒ’’Ž‹…ƒ„Ž‡ˆ”‘’”‹ŽͳǡʹͲͳ͹ƒ”‡ƒ•—†‡”ǣ
 Lesson 9 Ȉ Procedural Compliance 499

Note : The provisions of this section are not applicable to such person or class or classes of persons or state or part of
•–ƒ–‡ǡƒ•ƒ›„‡‘–‹ϔ‹‡†„›–Š‡‡–”ƒŽ
‘˜–Ǥ
‡”•‘•™Š‘ƒ”‡‘–”‡“—‹”‡†–‘“—‘–‡ƒ†Šƒ”—„‡”‘””‘Ž‡–‹ƒ’’Ž‹…ƒ–‹‘ˆ‘”ˆ‘”ƒŽŽ‘–‡–‘ˆ
ƒ†‹”‡–—”‘ˆ‹…‘‡ȏ‘–‹ϐ‹…ƒ–‹‘‘Ǥ͵͹ȀʹͲͳ͹†ƒ–‡†ͳͳǤͲͷǤʹͲͳ͹Ȑ
Š‡‡–”ƒŽ
‘˜‡”‡–Šƒ•ǡ˜‹†‡–Š‹•‘–‹ϐ‹…ƒ–‹‘‡ˆˆ‡…–‹˜‡ˆ”‘ͲͳǤͲ͹ǤʹͲͳ͹ǡ‘–‹ϐ‹‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘
ͳ͵ͻ”‡Žƒ–‹‰–‘“—‘–‹‰‘ˆƒ†Šƒ”—„‡”™‘—Ž†‘–ƒ’’Ž›–‘ƒ‹†‹˜‹†—ƒŽ™Š‘†‘‡•‘–’‘••‡••–Š‡ƒ†Šƒ”
—„‡”‘””‘Ž‡–ƒ†‹•ǣ
ȋ‹Ȍ ”‡•‹†‹‰‹–Š‡–ƒ–‡•‘ˆ••ƒǡ ƒ—Ƭƒ•Š‹”ƒ†‡‰ŠƒŽƒ›ƒǢ
ȋ‹‹Ȍ ƒ‘Ǧ”‡•‹†‡–ƒ•’‡”…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǢ
ȋ‹‹‹Ȍ ‘ˆ–Š‡ƒ‰‡‘ˆͺͲ›‡ƒ”•‘”‘”‡ƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ
ȋ˜‹Ȍ ‘–ƒ…‹–‹œ‡‘ˆ†‹ƒǤ

ƒ‹Ž—”‡ –‘ ‹–‹ƒ–‡ƒ†Šƒƒ”—„‡”™‘—Ž†Ž‡ƒ†–‘–Š‡„‡‹‰‹‘’‡”ƒ–‹˜‡Ǥ……‘”†‹‰Ž›Šƒ•‘–‹ϐ‹‡†–Š‡

ƒ‡”‹™Š‹…Š–Š‡™‹ŽŽ„‡…‘‡‹‘’‡”ƒ–‹˜‡‹ˆ‘–Ž‹‡†–‘ƒ†Šƒƒ”™‹–Š‹–Š‡•’‡…‹ϐ‹‡††—‡†ƒ–‡Ǥˆ–Š‡
„‡…‘‡•‹‘’‡”ƒ–‹˜‡ǡ‹–™‹ŽŽ„‡†‡‡‡†–Šƒ––Š‡™ƒ•‘–ˆ—”‹•Š‡†‘”‹–‹ƒ–‡†™Š‡”‡˜‡””‡“—‹”‡†ƒ†ƒŽŽ–Š‡
…‘•‡“—‡…‡•‘ˆ‘Ǧˆ—”‹•Š‹‰‘ˆ™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡‹†‹˜‹†—ƒŽǤ‘™‡˜‡”ǡ–Š‡’‡”•‘…ƒ”‡ƒ…–‹˜ƒ–‡Š‹•
„›•—„•‡“—‡–Ž›‹–‹ƒ–‹‰Š‹•ƒ†Šƒƒ”–‘–Š‡‡’ƒ”–‡–Ǥ
Power Delegated to Central Government
Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ•’‡…‹ˆ›ǡƒ›…Žƒ••‘”…Žƒ••‡•‘ˆ’‡”•‘•„›™Š‘
–ƒš‹•’ƒ›ƒ„Ž‡—†‡”–Š‹•…–‘”ƒ›–ƒš‘”†—–›‹•’ƒ›ƒ„Ž‡—†‡”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‹…Ž—†‹‰
‹’‘”–‡”•ƒ†‡š’‘”–‡”•™Š‡–Š‡”ƒ›–ƒš‹•’ƒ›ƒ„Ž‡„›–Š‡‘”‘–ƒ†•—…Š’‡”•‘••ŠƒŽŽǡ™‹–Š‹•—…Š–‹‡ƒ•
‡–‹‘‡†‹–Šƒ–‘–‹ϐ‹…ƒ–‹‘ǡƒ’’Ž›–‘–Š‡••‡••‹‰ˆϐ‹…‡”ˆ‘”–Š‡ƒŽŽ‘–‡–‘ˆƒ’‡”ƒ‡–ƒ……‘—–—„‡”Ǥ
Penalty for not complying with provisions relating to PAN or Aadhaar
‡ƒŽ–›‘ˆ•ǤͳͲǡͲͲͲ‹•‹’‘•ƒ„Ž‡—Ȁ•ʹ͹ʹˆ‘”ˆƒ‹Ž—”‡–‘…‘’Ž›™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳ͵ͻǡ‹Ǥ‡Ǥˆƒ‹Ž—”‡–‘
‘„–ƒ‹ǡ“—‘–‡ǡ‘”ƒ—–Š‡–‹…ƒ–‡‘”Š‘Ž†‹‰‘ˆ‘”‡–Šƒ‘‡Ǥ”‡…‹•‡Ž›ƒ•—†‡”ǣ
ƒǤ ˆƒ••‡••‡‡ˆƒ‹Ž•–‘“—‘–‡‘”‹–‹ƒ–‡Š‹•‘”ƒ†Šƒƒ”‘”“—‘–‡•‘”‹–‹ƒ–‡•‹˜ƒŽ‹†‘”ƒ†Šƒƒ”Ǥ
„Ǥ ˆƒ••‡••‡‡ˆƒ‹Ž•–‘“—‘–‡‘”ƒ—–Š‡–‹…ƒ–‡Š‹•‘”ƒ†Šƒƒ”‹•’‡…‹ϐ‹‡†–”ƒ•ƒ…–‹‘•Ǥ
…Ǥ ˆ”‡…‡‹˜‡”ȋ‹Ǥ‡Ǥǡ„ƒ•ǡϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ‡–…ǤȌ‘ˆ†‘…—‡–•‹”‡•’‡…–‘ˆ•’‡…‹ϐ‹‡†–”ƒ•ƒ…–‹‘•ˆƒ‹Ž•–‘
‡•—”‡–Šƒ––Š‡‘”ƒ†Šƒƒ”ƒ”‡†—Ž›“—‘–‡†ƒ†ƒ—–Š‡–‹…ƒ–‡†ǤǤ

TAX DEDUCTION ACCOUNT NUMBER (TAN)

—„‡”‹•ƒͳͲ‹‰‹–Ž’Šƒ—‡”‹…—„‡”ƒ†‹•—•‡†ƒ•ƒƒ„„”‡˜‹ƒ–‹‘ˆ‘”ƒš‡†—…–‹‘ƒ†‘ŽŽ‡…–‹‘
……‘—–—„‡”Ǥ˜‡”›••‡••‡‡Ž‹ƒ„Ž‡–‘†‡†—…––ƒšƒ–•‘—”…‡ȋȌ‘””‡“—‹”‡†–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡ȋȌ‹•
”‡“—‹”‡† –‘ ƒ’’Ž› ˆ‘” ƒ  ‘Ǥ ƒ† •ŠƒŽŽ “—‘–‡ –Š‹• —„‡” ‹ ƒŽŽ  ‡–—”•ǡ  ƒ›‡–• ƒ† ƒ› ‘–Š‡”
…‘—‹…ƒ–‹‘”‡‰ƒ”†‹‰™‹–Š–Š‡…‘‡ƒš‡’ƒ”–‡–Ǥ
•’‡”‡…–‹‘ʹͲ͵‘ˆ–Š‡…‘‡ƒš…–ͳͻ͸ͳǡ‹–‹•ƒ†ƒ–‘”›ˆ‘”ƒŽŽƒ••‡‡•‡‡ǯ•Ž‹ƒ„Ž‡–‘†‡†—…––‘“—‘–‡–Š‹•
—„‡”‹ƒŽŽ…‘—‹…ƒ–‹‘•”‡‰ƒ”†‹‰™‹–Š–Š‡…‘‡ƒš‡’ƒ”–‡–ƒ†ˆƒ‹Ž—”‡–‘†‘•‘ƒ––”ƒ…–•ƒ
’‡ƒŽ–›‘ˆ•ͳͲǡͲͲͲ—Ȁ•ʹ͹ʹǤ
–”—…–—”‡‘ˆǣ‘ˆ–Š‡–‘–ƒŽͳͲ†‹‰‹–—„‡”ǡϐ‹”•–Ͷ†‹‰‹–•‘ˆƒ”‡ƒŽ’Šƒ„‡–•ǡ–Š‡‡š–ͷ†‹‰‹–•‘ˆƒ”‡
—‡”‹…ƒ†Žƒ•–†‹‰‹–‹•ƒ”ƒ†‘ƒŽ’Šƒ„‡–Ǥ
‹”•–͵ƒŽ’Šƒ„‡–•‘ˆ”‡’”‡•‡––Š‡Œ—”‹•†‹…–‹‘…‘†‡ǡͶ–ŠƒŽ’Šƒ„‡–‹•–Š‡‹‹–‹ƒŽ‘ˆ–Š‡ƒ‡‘ˆ–Š‡Š‘Ž†‡”
™Š‘…ƒ„‡ƒ…‘’ƒ›ǡϐ‹”ǡ‹†‹˜‹†—ƒŽǡ‡–…Ǥ ‘”‡šƒ’Ž‡ǡƒŽŽ‘––‡†–‘”ǤƒŠ‡•Š‘ˆ‡ŽŠ‹ƒ›ƒ’’‡ƒ”ƒ•—†‡”ǣ
DEL M 12345 L
Steps for making TAN application
—„‡”…ƒ„‡ƒ’’Ž‹‡†ˆ‘”‘Ž‹‡ƒ•™‡ŽŽƒ•‘ˆϐŽ‹‡Ǥ ‘”ƒ‹‰ƒ’’Ž‹…ƒ–‹‘‘Ž‹‡ǡƒ’‡”•‘•ŠƒŽŽϐ‹Ž‡
Š‹•ƒ’’Ž‹…ƒ–‹‘‹ ‘”‘ǤͶͻ‘–Š‡ˆ‘ŽŽ‘™‹‰™‡„•‹–‡‘ˆ
 500 Lesson 9 Ȉ EP-TL

Step – I
Vis‹–Š––’•ǣȀȀ–‹Ǥ–‹Ǥ•†ŽǤ…‘Ȁ–ƒȀ‹†‡šǤŠ–Žƒ†•‡Ž‡…–DzŽ‹‡’’Ž‹…ƒ–‹‘ˆ‘”ȋ ‘”ͺͿȌdz
Step – II
‡Ž‡…–ƒ–‡‰‘”›‘ˆ‡†—…–‘”•ˆ”‘–Š‡†”‘’†‘™‡—ƒ†…Ž‹…‘Dz‡Ž‡…–—––‘dz
Step – III
‹ŽŽ‘—––Š‡”‡“—‹•‹–‡†‡–ƒ‹Ž•‘–Š‡ˆ‘”
Step – IV
ˆ –Š‡ †ƒ–ƒ •—„‹––‡† „› ƒ’’Ž‹…ƒ– ˆƒ‹Ž• ‹ ƒ› ˆ‘”ƒ– Ž‡˜‡Ž ˜ƒŽ‹†ƒ–‹‘ǡ ƒ ”‡•’‘•‡ ‹†‹…ƒ–‹‰ –Š‡ ‡””‘”ȋ•Ȍ ™‹ŽŽ „‡
†‹•’Žƒ›‡†‘–Š‡•…”‡‡
Step – V
‘”•‡‡†–‘„‡”‡Ǧ•—„‹––‡†ƒˆ–‡””‡…–‹ˆ›‹‰–Š‡‡””‘”ȋ•Ȍ
Step - VI
…ƒ•‡ˆ‘”Ž‡˜‡Ž‡””‘”ȋ•Ȍ†‘‘–‡š‹•–ƒ…‘ϐ‹”ƒ–‹‘•…”‡‡™‹–Š†ƒ–ƒϐ‹ŽŽ‡†„›–Š‡ƒ’’Ž‹…ƒ–™‹ŽŽ„‡†‹•’Žƒ›‡†
Step – VII
…ƒ•‡ƒ’’Ž‹…ƒ–”‡“—‹”‡•ƒ›ƒ‡†‡––‘–Š‡†ƒ–ƒ†‹•’Žƒ›‡†‹–Š‡…‘ϐ‹”ƒ–‹‘•…”‡‡ǡ‹–ƒ›…Š‘‘•‡–Š‡‡†‹–
‘’–‹‘
Step – VIII
…ƒ•‡–Š‡†‹•’Žƒ›‡†‹ˆ‘”ƒ–‹‘‹•…‘””‡…–ǡƒ’’Ž‹…ƒ–•ŠƒŽŽ…Š‘‘•‡–Š‡…‘ϐ‹”‘’–‹‘
Step – IX
•—……‡••ˆ—Ž’ƒ›‡–‘ˆ ‡‡•ȋ‹…ƒ•‡–Š‡‘†‡‘ˆ’ƒ›‡–‹•‘–Š‡”–Šƒ‘”Š‡“—‡Ȍƒƒ…‘™Ž‡†‰‡–•Ž‹’™‹ŽŽ
„‡‰‡‡”ƒ–‡†
Step – X
’’Ž‹…ƒ–•ŠƒŽŽ•ƒ˜‡ƒ†’”‹––Š‡ƒ…‘™Ž‡†‰‡–ƒ†•‡†‹––‘ƒŽ‘‰™‹–Š”‡“—‹•‹–‡†‘…—‡–•ƒ–
‡Ǧ
‘˜‡”ƒ…‡ˆ”ƒ•–”—…–—”‡‹‹–‡†ǡͷ–ŠϐŽ‘‘”ǡƒ–”‹–‡”Ž‹‰ǡŽ‘–‘Ǥ͵Ͷͳǡ—”˜‡›‘Ǥ
997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016
Š‡‡˜‡Ž‘’‡•Š‘—Ž†„‡•—’‡”•…”‹„‡†ƒ•Ǯ Ǧ…‘™Ž‡†‰‡–—„‡”ǯȋ‡Ǥ‰ǤǮ
Ǧͺͺ͵ͲͳͲʹͲͲͲͲʹͶͶǯȌǤ
PAYMENT OF TAX
Š‡”‡ƒ”‡–™‘‘†‡•‘ˆ’ƒ›‡–‘ˆ†‹”‡…––ƒš‡•ȋ‹Ȍ’Š›•‹…ƒŽ‘†‡ǡ‹Ǥ‡Ǥǡ’ƒ›‡–„›ˆ—”‹•Š‹‰–Š‡Šƒ”†…‘’›‘ˆ –Š‡
…ŠƒŽŽƒƒ––Š‡†‡•‹‰ƒ–‡†„ƒǢƒ†ȋ‹‹Ȍ‡Ǧ’ƒ›‡–‘†‡ǡ‹Ǥ‡Ǥǡƒ‹‰’ƒ›‡–„›—•‹‰–Š‡‡Ž‡…–”‘‹…‘†‡Ǥ
– ‹• …‘’—Ž•‘”› ˆ‘” –Š‡ ˆ‘ŽŽ‘™‹‰ –ƒš’ƒ›‡”• –‘ ’ƒ› –ƒš —•‹‰ –Š‡ ‡Ǧ’ƒ›‡– ‘†‡ ‘Ž› ȋ‹Ǥ‡Ǥǡ —•‹‰ ‹–‡”‡–
„ƒ‹‰ˆƒ…‹Ž‹–›ȌǤ‘–Š‡”™‘”†•ǡˆ‘ŽŽ‘™‹‰’‡”•‘•…ƒ‘–—•‡–Š‡’Š›•‹…ƒŽ‘†‡‘ˆ’ƒ›‡–‘ˆ–ƒšƒ†Šƒ˜‡–‘ ’ƒ›
–Š‡–ƒš‡Ž‡…–”‘‹…ƒŽŽ›—•‹‰–Š‡‡Ǧ’ƒ›‡–ˆƒ…‹Ž‹–›ǣ
ƒǤ ŽŽ…‘’ƒ‹‡•
„Ǥ ŽŽ–ƒš’ƒ›‡”•‘–Š‡”–Šƒ…‘’ƒ›™Š‘ƒ”‡Ž‹ƒ„Ž‡–‘‰‡––Š‡‹”ƒ……‘—–•ƒ—†‹–‡†ƒ•’‡”•‡…–‹‘ͶͶǤ

TAX DEDUCTED AT SOURCE (TDS)

…‘‡ƒš…–’”‘˜‹†‡•ˆ‘”•…‘’‡‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ’‡”•‘…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘ƒƒ—ƒŽ„ƒ•‹•ǤŠ‡ –ƒš
Ž‹ƒ„‹Ž‹–›‹•†‡–‡”‹‡†ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ƒ†•—…Š–ƒšŽ‹ƒ„‹Ž‹–›‹•†‹•…Šƒ”‰‡†˜‹†‡ ƒ›‘ˆ
–Š‡ˆ‘ŽŽ‘™‹‰‘†‡•ǣ
 Lesson 9 Ȉ Procedural Compliance 501

Tax
ƒš ‡Žˆ ƒš‘
Deducted ‘ŽŽ‡…–‡†ƒ– ‡‰—Žƒ”
†˜ƒ…‡ƒš ••‡••‡–
at Source ‘—”…‡ȋȌ ƒšȋȌ ••‡••‡–
(TDS)

A brief discussion about the various ways by which income tax is collected by the Government is
given below :
Tax Deducted at Source (TDS) ‹• ƒ ‘‡ ‘ˆ –Š‡ ‘†‡ ‘” ‡…Šƒ‹• ‘ˆ …‘ŽŽ‡…–‹‰ ‹…‘‡ –ƒš —†‡” –Š‡ †‹ƒ
…‘‡ƒš…–‘ˆͳͻ͸ͳ‹Ǥ‡ǤǮ–Š‡…–ǯǤ•’‡”–Š‡’”‘˜‹•‹‘‘ˆ•‡…–‹‘ͳͻͳ‘ˆ–Š‡…–ǡ‘–™‹–Š•–ƒ†‹‰–Š‡”‡‰—Žƒ”ƒ••‡••‡–
‹”‡•’‡…–‘ˆƒ›‹…‘‡–ƒ‡’Žƒ…‡‹ƒ•—„•‡“—‡–›‡ƒ”…ƒŽŽ‡†ƒ•ƒ••‡••‡–›‡ƒ”ǡ„—–‹…ƒ•‡‘ˆ…‡”–ƒ‹•’‡…‹ϐ‹‡†‹…‘‡ǡ
–ƒš‹•†‡†—…–‡†ƒ–•‘—”…‡„›–Š‡’ƒ›‡”ƒ––Š‡’”‡•…”‹„‡†”ƒ–‡ƒ––Š‡–‹‡‘ˆƒ……”—ƒŽ‘”’ƒ›‡–‘ˆ•—…Š‹…‘‡•–‘–Š‡
’ƒ›‡‡ǤŠ‡–ƒš•‘†‡†—…–‡†‹•”‡“—‹”‡†–‘„‡†‡’‘•‹–‡†™‹–Š–Š‡‰‘˜‡”‡–™‹–Š‹–Š‡•’‡…‹ϐ‹‡†–‹‡Ž‹‹–Ǥ
Š‡…‘…‡’–‘ˆ™ƒ•‹–”‘†—…‡†™‹–Šƒƒ‹–‘…‘ŽŽ‡…––ƒšˆ”‘–Š‡˜‡”›•‘—”…‡‘ˆ‹…‘‡ƒ•’‡”™Š‹…Šǡƒ’‡”•‘
ȋ†‡†—…–‘”Ȍ™Š‘‹•Ž‹ƒ„Ž‡–‘ƒ‡’ƒ›‡–‘ˆ•’‡…‹ϐ‹‡†ƒ–—”‡–‘ƒ›‘–Š‡”’‡”•‘ȋ†‡†—…–‡‡Ȍ•ŠƒŽŽ†‡†—…––ƒšƒ–
•‘—”…‡ƒ†”‡‹––Š‡•ƒ‡‹–‘–Š‡ƒ……‘—–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–ǤŠ‡†‡†—…–‡‡ˆ”‘™Š‘•‡‹…‘‡ǡ–ƒšŠƒ•
„‡‡†‡†—…–‡†ƒ–•‘—”…‡™‘—Ž†„‡‡–‹–Ž‡†–‘‰‡–…”‡†‹–‘ˆ–Š‡ƒ‘—–•‘†‡†—…–‡†‘–Š‡„ƒ•‹•‘ˆ ‘”ʹ͸‘”
…‡”–‹ϐ‹…ƒ–‡‹••—‡†„›–Š‡†‡†—…–‘”Ǥ
ƒš†‡†—…–‡†ƒ–•‘—”…‡ȋȌ‹•ƒ‹†‹”‡…–‡…Šƒ‹•‘ˆ…‘ŽŽ‡…–‹‰–ƒš™Š‹…Š…‘„‹‡•–™‹…‘…‡’–•‘ˆDz’ƒ› ƒ•
›‘— ‡ƒ”dz ƒ† Dz…‘ŽŽ‡…– ƒ• ‹– ‹• „‡‹‰ ‡ƒ”‡†Ǥdz –• ˜ƒŽ—‡ Ž‹‡• ‹ –Š‡ ˆƒ…– –Šƒ– ‹– ’”‘˜‹†‡• –Š‡
‘˜‡”‡– ™‹–Š ƒ
…‘–‹—‘—•ϐŽ‘™‘ˆˆ—†•ƒ†ƒ––Š‡•ƒ‡–‹‡‡ƒ•‡•–Š‡„—”†‡‘–Š‡–ƒš’ƒ›‡”Ǥ
–‹•ƒƒ‰‡†„›–Š‡‡–”ƒŽ‘ƒ”†ˆ‘”‹”‡…–ƒš‡•ȋȌƒ†‹•’ƒ”–‘ˆ–Š‡‡’ƒ”–‡–‘ˆ‡˜‡—‡ƒƒ‰‡† „›
†‹ƒ‡˜‡—‡‡”˜‹…‡ȋȌǤ

Objectives of Tax Deducted at Source

Š‡”‡ ƒ”‡ ˜ƒ”‹‘—• ‘„Œ‡…–‹˜‡ ‘ˆ ‹–”‘†—…‹‰ –Š‡  ’”‘˜‹•‹‘ —†‡” –Š‡ …–Ǥ ‡ ‹• ƒŽ•‘ –‘ ƒ‡ •—”‡ –Šƒ– –ƒš
’ƒ›‡–‹•‘–ƒ˜‘‹†‡†„›—•…”—’—Ž‘—•‹…‘‡–ƒšƒ••‡••‡•ƒ†–Š‡‰‘˜‡”‡–”‡…‡‹˜‡•‹–•ƒ…–—ƒŽ•Šƒ”‡‘ˆ –ƒš‡•Ǥ
Š‡”‡ˆ‘”‡ǡ–‘ƒ…Š‹‡˜‡–Š‹•‰‘ƒŽǡ–Š‡”‡•’‘•‹„‹Ž‹–›‘ˆ†‡†—…–‹‘ƒ††‡’‘•‹–‹‘‘ˆ’ƒ”–‘ˆ–Š‡–ƒš‡•™ƒ•’—–‘–Š‡’ƒ›‡”
”ƒ–Š‡”–Šƒ–Š‡”‡…‡‹˜‡”‘ˆ’ƒ›‡–•‘ˆ†‹ˆˆ‡”‡–ƒ–—”‡Ǥ
Š‡„ƒ•‹…‘„Œ‡…–‹˜‡‘ˆ‹–”‘†—…‹‰–ƒš†‡†—…–‡†ƒ–•‘—”…‡’”‘˜‹•‹‘—†‡”–Š‡…–ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

Scheme of Tax Deduction at Source

Š‡ ‘„Ž‹‰ƒ–‹‘ –‘ †‡†—…–Ȁ…‘ŽŽ‡…– –ƒš ƒ– •‘—”…‡ ‹• —’‘ –Š‡ ’‡”•‘ ”‡•’‘•‹„Ž‡ ˆ‘” ’ƒ›‹‰ –Š‡ ‹…‘‡Ȁƒ‘—–
™Š‹…Š‹••—„Œ‡…––‘ǤŠ‡”‡ˆ‘”‡•—…Š’‡”•‘ǡ‹Ǥ‡Ǥǡ–Š‡’ƒ›‡”‹•”‡“—‹”‡†–‘ˆ‘ŽŽ‘™–Š‡’”‘…‡†—”‡ˆ‘”†‡†—…–‹‰Ȁ
 502 Lesson 9 Ȉ EP-TL

…‘ŽŽ‡…–‹‰–ƒšƒ–•‘—”…‡‡–‹‘‡†ƒ•—†‡”ǣ
Step – 1
Š‡’ƒ›‡”Šƒ•–‘ƒ’’Ž›ˆ‘”–ƒš†‡†—…–‹‘ƒ……‘—–—„‡”ȋȌ‹ ‘”‘ǦͶͻǤ
Step – 2
‡‹•–‘†‡†—…––ƒšˆ”‘–Š‡‹…‘‡Ȁ’ƒ›‡–‡–‹‘‡†‹–Š‡˜ƒ”‹‘—••‡…–‹‘•ǡ‹Ǥ‡Ǥǡ‡…–‹‘ͳͻʹ–‘ͳͻ͸Ǥ
Step – 3
Š‡ ƒ‘—– •‘ †‡†—…–‡†Ȁ…‘ŽŽ‡…–‡† •Š‘—Ž† „‡ †‡’‘•‹–‡† ™‹–Š‹ –Š‡ ”‡“—‹•‹–‡ •–‹’—Žƒ–‡† –‹‡ –‘ –Š‡ …”‡†‹– ‘ˆ
…‡–”ƒŽ‰‘˜‡”‡–Ǥ
Step – 4
Š‡ ’ƒ›‡” •Š‘—Ž† ’”‡’ƒ”‡  ‡–—” •–ƒ–‡‡–• ˆ‘” ‡˜‡”› “—ƒ”–‡” ƒ† ϐ‹Ž‡ –Š‡ •ƒ‡ ™‹–Š –Š‡ ƒ—–Š‘”‹–›
†‡•‹‰ƒ–‡†„›–Š‡…‘‡Ǧƒš†‡’ƒ”–‡–ȋ‹–Š‹•…ƒ•‡Ȍ‹•—…Šˆ‘”ƒ†˜‡”‹ϐ‹‡†‹•—…Šƒ‡”ƒ•ƒ› „‡
’”‡•…”‹„‡†Ǥ
Step – 5
ƒ•–Ž›ǡ–Š‡’ƒ›‡‡•Š‘—Ž†„‡‹••—‡†…‡”–‹ϐ‹…ƒ–‡‘ˆ–ƒš†‡†—…–‹‘Ȁ…‘ŽŽ‡…–‡†ƒ–•‘—”…‡™‹–Š‹–Š‡•’‡…‹ϐ‹‡††ƒ–‡ǤŠ‡
…‡”–‹ϐ‹…ƒ–‡–‘„‡†‘™Ž‘ƒ†‡†ˆ”‘–ƒš’‘”–ƒŽǤ
Žƒ”‹ϐ‹…ƒ–‹‘”‡‰ƒ”†‹‰‘
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍ…‘’‘‡–…‘’”‹•‡†‹’ƒ›‡–•ƒ†‡–‘
”‡•‹†‡–•ȏ‹”…—Žƒ”‘Ǥʹ͵ȀʹͲͳ͹†ƒ–‡†ͳͻǤͲ͹ǤʹͲͳ͹Ȑ
‹–Š–Š‡‡™•›•–‡ˆ‘”–ƒšƒ–‹‘‘ˆ•‡”˜‹…‡•—†‡”–Š‡
”‡‰‹‡™Ǥ‡ǤˆǤͲͳǤͲ͹ǤʹͲͳ͹ǡ–Š‡Šƒ•…Žƒ”‹ϐ‹‡†–Šƒ–
™Š‡”‡˜‡”‹–‡”•‘ˆ–Š‡ƒ‰”‡‡‡–‘”…‘–”ƒ…–„‡–™‡‡–Š‡’ƒ›‡”ƒ†–Š‡’ƒ›‡‡ǡ–Š‡…‘’‘‡–‘ˆǮ
‘•‡”˜‹…‡•ǯ
…‘’”‹•‡†‹–Š‡ƒ‘—–’ƒ›ƒ„Ž‡–‘ƒ”‡•‹†‡–‹•‹†‹…ƒ–‡†•‡’ƒ”ƒ–‡Ž›ǡ–ƒš•ŠƒŽŽ„‡†‡†—…–‡†ƒ–•‘—”…‡‘–Š‡ƒ‘—–
’ƒ‹†‘”’ƒ›ƒ„Ž‡™‹–Š‘—–‹…Ž—†‹‰•—…ŠǮ
‘•‡”˜‹…‡•ǯ…‘’‘‡–Ǥ

•ŠƒŽŽ‹…Ž—†‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒšǡ‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒšǡ–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš
ƒ†‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒšǤ
‡…–‹‘•ͳͻʹ–‘ʹͲ͸‘ˆ–Š‡…‘‡Ǧ–ƒš…–Žƒ›†‘™–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡ǤŠ‡
provisions in respect of different incomes are as follows:
Salary [Section 192]
‡’Ž‘›‡”’ƒ›‹‰ƒ›‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Ǯ•ƒŽƒ”›ǯ‹•”‡•’‘•‹„Ž‡ˆ‘”†‡†—…–‹‰‘ƒƒ˜‡”ƒ‰‡
”ƒ–‡‘ˆ‹…‘‡–ƒš„ƒ•‡†‘–Š‡’”‡˜ƒ‹Ž‹‰”ƒ–‡†—”‹‰–Š‡’ƒ”–‹…—Žƒ” ‹ƒ…‹ƒŽ‡ƒ”„›…‘•‹†‡”‹‰–Š‡‡•–‹ƒ–‡†
…‘‡ ‘ˆ ƒ••‡••‡‡Ǥ ……‘”†‹‰Ž› ƒŽŽ ‡’Ž‘›‡”• ƒ‹‰ •—…Š ’ƒ›‡–• Ž‹‡ †‹˜‹†—ƒŽǡ  ǡ ƒ”–‡”•Š‹’ ‹”•ǡ
‘’ƒ‹‡•ǡ‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–‹‡•ǡ–”—•–ǡƒ†ƒ”–‹ϐ‹…‹ƒŽŒ—†‹…‹ƒŽ’‡”•‘•ƒ”‡Ž‹ƒ„Ž‡–‘†‡†—…–Ǥ
Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡–Š‡’”‡Ǧ”‡“—‹•‹–‡•ˆ‘”†‡†—…–‹‘—Ȁ•ͳͻʹ

Š‡”‡‡š‹•–ƒ‡’Ž‘›‡”Ȃ‡’Ž‘›‡‡”‡Žƒ–‹‘•Š‹’„‡–™‡‡†‡†—…–‘”ƒ†
1 †‡†—…–‡‡ƒ†–Š‡’ƒ›‡–‹•‹–Š‡ƒ–—”‡‘ˆ•ƒŽƒ”›

›’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰’ƒ›‡––‘”‡•‹†‡–Ȁ‘Ǧ”‡•‹†‡–
2 ‡’Ž‘›‡‡•

3 ƒ›ƒ‡–‹•ƒ†‡„›–Š‡‡’Ž‘›‡”–‘–Š‡‡’Ž‘›‡‡

Š‡‹…‘‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”‹‡•‹•ƒ„‘˜‡–Š‡ƒš‹—ƒ‘—–‘–
4 …Šƒ”‰‡ƒ„Ž‡–‘–ƒš
 Lesson 9 Ȉ Procedural Compliance 503

Š‡†‡†—…–‹‘•Š‘—Ž†„‡ƒ†‡ƒ––Š‡–‹‡‘ˆƒ‹‰’ƒ›‡–ƒ†‘–‘™Š‡‹–„‡…‘‡•†—‡‘”‘„Ž‹‰ƒ–‹‘ƒ”‹•‡•Ǥ
1
Š‡‡’Ž‘›‡”‹•”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡‘–Š‡ƒ‘—–’ƒ›ƒ„Ž‡„›ƒ’’Ž›‹‰–Š‡ƒ˜‡”ƒ‰‡”ƒ–‡‘ˆ ‹…‘‡
–ƒšǤ˜‡”ƒ‰‡”ƒ–‡‘ˆ…‘‡–ƒš‹•…ƒŽ…—Žƒ–‡†‘–Š‡„ƒ•‹•‘ˆ”ƒ–‡•‹ˆ‘”…‡ˆ‘”–Š‡’ƒ”–‹…—Žƒ”ˆ‹ƒ…‹ƒŽ‡ƒ” ‹™Š‹…Š
’ƒ›‡–‹•ƒ†‡ǤŠ‡”ƒ–‡˜ƒ”‹‡•ˆ‘”’‡”•‘•—†‡”˜ƒ”‹‘—••Žƒ„”ƒ–‡ǡƒ›˜ƒ”›‹†‹ˆˆ‡”‡–ˆ‹ƒ…‹ƒŽ›‡ƒ”ƒ†
†‡’‡†•‘–‘–ƒŽ…‘‡‡ƒ”‹‰•ƒ†ƒ˜ƒ‹Žƒ„Ž‡†‡†—…–‹‘•’‡”›‡ƒ”Ǥ
Deferring TDS in respect of income pertaining to Employee Stock Option Plan (ESOP) of start ups: ‘”
–Š‡’—”’‘•‡•‘ˆ†‡†—…–‹‰‘”’ƒ›‹‰–ƒš—†‡”•‡…–‹‘ͳͻʹǡƒ’‡”•‘ǡ„‡‹‰ƒ‡Ž‹‰‹„Ž‡•–ƒ”–Ǧ—’”‡ˆ‡””‡†–‘‹•‡…–‹‘
ͺͲǦǡ”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰ƒ›‹…‘‡–‘–Š‡ƒ••‡••‡‡„‡‹‰’‡”“—‹•‹–‡‘ˆ–Š‡ƒ–—”‡•’‡…‹ϐ‹‡†‹ ‡…–‹‘ ͳ͹ȋʹȌ
ȋ˜‹Ȍǡ ‹Ǥ‡Ǥǡ •™‡ƒ– ‡“—‹–› •Šƒ”‡•Ȁǡ‹ ƒ› ’”‡˜‹‘—• ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ƒ••‡••‡– ›‡ƒ”ǡ „‡‰‹‹‰‘‘”ƒˆ–‡”
–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ•ŠƒŽŽ†‡†—…–‘”’ƒ›ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–ƒš‘•—…Š‹…‘‡ ™‹–Š‹ͳͶ†ƒ›•Ȅ
ȋ‹Ȍ ƒˆ–‡”–Š‡‡š’‹”›‘ˆˆ‘”–›Ǧ‡‹‰Š–‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”Ǣ‘”
ȋ‹‹Ȍ ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡•ƒŽ‡‘ˆ•—…Š•’‡…‹ϐ‹‡†•‡…—”‹–›‘”•™‡ƒ–‡“—‹–›•Šƒ”‡„›–Š‡ƒ••‡••‡‡Ǣ‘”
ȋ‹‹‹Ȍ ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡ƒ••‡••‡‡…‡ƒ•‹‰–‘„‡–Š‡‡’Ž‘›‡‡‘ˆ–Š‡’‡”•‘ǡ

™Š‹…Š‡˜‡”‹•–Š‡‡ƒ”Ž‹‡•–ǡ‘–Š‡„ƒ•‹•‘ˆ”ƒ–‡•‹ˆ‘”…‡ˆ‘”–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡•ƒ‹†•’‡…‹ϐ‹‡†•‡…—”‹–›‘”
•™‡ƒ–‡“—‹–›•Šƒ”‡‹•ƒŽŽ‘––‡†‘”–”ƒ•ˆ‡””‡†Ǥ[As amended by Finance Act, 2020]
Rate of deduction of tax : •’‡”‡…–‹‘ ͳͻʹǡ–Š‡‡’Ž‘›‡” ‹•”‡“—‹”‡†–‘ †‡†—…––ƒšƒ–•‘—”…‡ ‘–Š‡ƒ‘—–
’ƒ›ƒ„Ž‡ƒ––Š‡ƒ˜‡”ƒ‰‡”ƒ–‡‘ˆ‹…‘‡–ƒšǤŠ‹•Šƒ•–‘„‡…‘’—–‡†‘–Š‡„ƒ•‹•‘ˆ”ƒ–‡•‹ˆ‘”…‡ˆ‘”–Š‡ϐ‹ƒ…‹ƒŽ‡ƒ”‹
™Š‹…Š ’ƒ›‡– ‹• ƒ†‡Ǥ ƒš ‘ •ƒŽƒ”› ‹• –‘ „‡ †‡†—…–‡† ƒˆ–‡” ‹…Ž—†‹‰ •—”…Šƒ”‰‡ ‹ˆ ƒ’’Ž‹…ƒ„Ž‡ ƒ† Š‡ƒŽ–ŠƬ
‡†—…ƒ–‹‘…‡••ǡ‹Ǥ‡Ǥǡ
‘ƒŽƒ”›α•–‹ƒ–‡†–‘–ƒŽ–ƒšŽ‹ƒ„‹Ž‹–›†—”‹‰–Š‡Ǥ”Ǥ
  ‘Ǥ‘ˆ‘–Š•‘ˆ‡’Ž‘›‡–†—”‹‰–Š‡Ǥ”Ǥ

Rate of deduction of tax : •’‡”‡…–‹‘ͳͻʹǡ–Š‡‡’Ž‘›‡”‹•”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡‘–Š‡ƒ‘—–

’ƒ›ƒ„Ž‡ƒ––Š‡ƒ˜‡”ƒ‰‡”ƒ–‡‘ˆ‹…‘‡–ƒšǤŠ‹•Šƒ•–‘„‡…‘’—–‡†‘–Š‡„ƒ•‹•‘ˆ”ƒ–‡•‹ˆ‘”…‡ˆ‘”–Š‡ϐ‹ƒ…‹ƒŽ‡ƒ”‹
™Š‹…Š ’ƒ›‡– ‹• ƒ†‡Ǥ ƒš ‘ •ƒŽƒ”› ‹• –‘ „‡ †‡†—…–‡† ƒˆ–‡” ‹…Ž—†‹‰ •—”…Šƒ”‰‡ ‹ˆ ƒ’’Ž‹…ƒ„Ž‡ ƒ† Š‡ƒŽ–ŠƬ
‡†—…ƒ–‹‘…‡••Ǥ
TDS on simultaneous employment with more than one employer or on change of employment :  …ƒ•‡•
™Š‡”‡‹ǡ †—”‹‰ –Š‡ ϐ‹ƒ…‹ƒŽ ›‡ƒ”ǡ ƒ ƒ••‡••‡‡ ‹• ‡’Ž‘›‡† •‹—Ž–ƒ‡‘—•Ž› —†‡” ‘”‡ –Šƒ ‘‡ ‡’Ž‘›‡”ǡ ‘”
™Š‡”‡Š‡Šƒ•Š‡Ž†•—……‡••‹˜‡Ž›‡’Ž‘›‡–—†‡”‘”‡–Šƒ‘‡‡’Ž‘›‡”ǡŠ‡ƒ›ˆ—”‹•Š–‘–Š‡’‡”•‘”‡•’‘•‹„Ž‡
ˆ‘”ƒ‹‰–Š‡’ƒ›‡–ȋ„‡‹‰‘‡‘ˆ–Š‡•ƒ‹†‡’Ž‘›‡”•ƒ•–Š‡ƒ••‡••‡‡ƒ›ǡŠƒ˜‹‰”‡‰ƒ”†–‘–Š‡…‹”…—•–ƒ…‡•
‘ˆŠ‹•…ƒ•‡ǡ…Š‘‘•‡Ȍǡ†‡–ƒ‹Ž•‘ˆ–Š‡‹…‘‡—†‡”–Š‡Š‡ƒ†DzƒŽƒ”‹‡•dz†—‡‘””‡…‡‹˜‡†„›Š‹ˆ”‘–Š‡‘–Š‡”‡’Ž‘›‡”
‘”‡’Ž‘›‡”•ǡ–Š‡–ƒš†‡†—…–‡†ƒ–•‘—”…‡–Š‡”‡ˆ”‘ƒ†–Š‡”‡—’‘–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–
”‡ˆ‡””‡†–‘ƒ„‘˜‡•ŠƒŽŽ–ƒ‡‹–‘ƒ……‘—––Š‡†‡–ƒ‹Ž••‘ˆ—”‹•Š‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆƒ‹‰–Š‡†‡†—…–‹‘Ǥ
Š‡ ’‡”•‘ ”‡•’‘•‹„Ž‡ ˆ‘” ƒ‹‰ –Š‡ ’ƒ›‡– …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‡ Š‡ƒ† •ƒŽƒ”› •ŠƒŽŽǡ ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ
‡•–‹ƒ–‹‰‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡‘”…‘’—–‹‰–ƒš†‡†—…–‹„Ž‡ǡ‘„–ƒ‹ˆ”‘–Š‡ƒ••‡••‡‡–Š‡‡˜‹†‡…‡‘”’”‘‘ˆ‘”
’ƒ”–‹…—Žƒ”•‘ˆ’”‡•…”‹„‡†…Žƒ‹•ȋ‹…Ž—†‹‰…Žƒ‹ˆ‘”•‡–Ǧ‘ˆˆ‘ˆŽ‘••Ȍ—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–‹•—…Šˆ‘”ƒ†
ƒ‡”ƒ•’”‡•…”‹„‡†‹–Š‹•”‡‰ƒ”†Ǥ
Payment of tax by employer on non-monetary perquisite :‡…–‹‘•ͳͻʹȋͳȌƒ†ͳͻʹȋͳȌ‘ˆ–Š‡…‘‡ƒš
…–ǡ‡ƒ„Ž‡–Š‡‡’Ž‘›‡”ƒ–Š‹•‘’–‹‘ǡ–‘ƒ‡’ƒ›‡–‘ˆ–Š‡‡–‹”‡–ƒš‘”ƒ’ƒ”–‘ˆ–Š‡–ƒš†—‡‘‘Ǧ‘‡–ƒ”›
’‡”“—‹•‹–‡• ‰‹˜‡ –‘ –Š‡ ‡’Ž‘›‡‡Ǥ Š‡ –ƒš ’ƒ›ƒ„Ž‡ ‹• –‘ „‡ †‡–‡”‹‡† ƒ– –Š‡ ƒ˜‡”ƒ‰‡ ”ƒ–‡ ‘ˆ –Š‡ ‹…‘‡ –ƒš
…‘’—–‡† ‘ –Š‡ „ƒ•‹• ‘ˆ ”ƒ–‡• ‹ ˆ‘”…‡ ƒ† –Š‡ ’ƒ›‡– ™‹ŽŽ Šƒ˜‡ –‘ „‡ ƒ†‡ ™Š‡ •—…Š –ƒš ™ƒ• ‘–Š‡”™‹•‡
†‡†—…–‹„Ž‡ǡ‹Ǥ‡Ǥǡƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†•ƒŽƒ”‹‡•ǡ–‘–Š‡‡’Ž‘›‡‡Ǥ —”–Š‡”ǡ–Š‡
–ƒš•‘’ƒ‹†•ŠƒŽŽ„‡†‡‡‡†–‘„‡–Š‡ƒ†‡ˆ”‘–Š‡•ƒŽƒ”›‘ˆ–Š‡‡’Ž‘›‡‡Ǥ‘™‡˜‡”ǡƒ•’‡”’”‘˜‹•‘–‘•‡…–‹‘
ͳͻͺǡ–ƒš•‘’ƒ‹†™‹ŽŽ‘–„‡†‡‡‡†–‘„‡‹…‘‡‘ˆ–Š‡‡’Ž‘›‡‡Ǥ
TDS where the salary paid is net of tax ǣŠ‡”‡–Š‡‡’Ž‘›‡‡‡–‡”•‹–‘ƒƒ‰”‡‡‡–‘”ƒƒ””ƒ‰‡‡–ƒ•’‡”
™Š‹…Š–Š‡–ƒš…Šƒ”‰‡ƒ„Ž‡‘–Š‡‹…‘‡‹•„‘”‡„›–Š‡‡’Ž‘›‡”–Š‡ˆ‘”–Š‡’—”’‘•‡‘ˆ†‡†—…–‹‘‘ˆ–ƒšǡ–Š‡
‹…‘‡‹•–‘„‡‹…”‡ƒ•‡†–‘•—…Šƒƒ‘—–ƒ•™‘—Ž†ǡƒˆ–‡”†‡†—…–‹‘‘ˆ–ƒš–Š‡”‡‘„‡‡“—ƒŽ–‘–Š‡‡–ƒ‘—–
 504 Lesson 9 Ȉ EP-TL

’ƒ›ƒ„Ž‡ƒ•’‡”–Š‡ƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–ȋ‡…–‹‘ͳͻͷȌǤ‘™‡˜‡”ǡ–Š‹•’”‘˜‹•‹‘‹•‘–ƒ’’Ž‹…ƒ„Ž‡™Š‡”‡–Š‡
‡’Ž‘›‡”Šƒ•ƒ†‡’ƒ›‡–‘ˆ–ƒš‘‘Ǧ‘‡–ƒ”›’‡”“—‹•‹–‡•ƒ•’”‘˜‹†‡†‹•‡…–‹‘ͳͻʹȋͳȌǤ
Salary paid in Foreign Currency [Rule 26 & 115] ǣ ‘”–Š‡’—”’‘•‡‘ˆ†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡‘ƒ›‹…‘‡
’ƒ›ƒ„Ž‡‹ˆ‘”‡‹‰…—””‡…›ǡ–Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡ˆ‘”–Š‡…ƒŽ…—Žƒ–‹‘‘ˆ–Š‡˜ƒŽ—‡‹”—’‡‡•‘ˆ•—…Š‹…‘‡’ƒ›ƒ„Ž‡–‘
ƒƒ••‡••‡‡‘—–•‹†‡†‹ƒ•ŠƒŽŽ„‡–Š‡–‡Ž‡‰”ƒ’Š‹…–”ƒ•ˆ‡”„—›‹‰”ƒ–‡‘ˆ•—…Š…—””‡…›ƒ•‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡
–ƒš‹•”‡“—‹”‡†–‘„‡†‡†—…–‡†ƒ–•‘—”…‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”„›–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰
•—…Š‹…‘‡Ǥ
–ƒ›„‡‘–‡†–Šƒ––Š‹•”—Ž‡‹•ƒ’’Ž‹…ƒ„Ž‡‘Ž›ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆǤ‘™‡˜‡”ǡ‹…‘’—–‹‰–Š‡•ƒŽƒ”›‹…‘‡ǡ
–Š‡”ƒ–‡‘ˆ…‘˜‡”•‹‘–‘„‡ƒ’’Ž‹‡†‹•–Š‡–‡Ž‡‰”ƒ’Š‹…–”ƒ•ˆ‡”„—›‹‰”ƒ–‡‘–Š‡Žƒ•–†ƒ›‘ˆ‘–Š‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰–Š‡‘–Š‹™Š‹…Š–Š‡•ƒŽƒ”›‹•†—‡‘”‹•’ƒ‹†‹ƒ†˜ƒ…‡‘”ƒ””‡ƒ”•ȋ—Ž‡ͳͳͷȌǤ
Dz‡Ž‡‰”ƒ’Š‹…–”ƒ•ˆ‡”„—›‹‰”ƒ–‡ȋȌdzǡ‡ƒ•–Š‡”ƒ–‡‘””ƒ–‡•‘ˆ‡š…Šƒ‰‡ƒ†‘’–‡†„›–Š‡–ƒ–‡ƒ‘ˆ†‹ƒǤ
Issue of Form 16 & Form 12 BA ǣŠ‡†‡†—…–‡†–‘„‡†‡’‘•‹–‡†–‘
‘˜‡”‡–ƒ†ƒ ͳ͸•Š‘—Ž†„‡
‹••—‡†–‘‡’Ž‘›‡‡•ǤŠ‡‡’Ž‘›‡‡•…Žƒ‹–Š‡ƒ‘—–™Š‹Ž‡•—„‹––‹‰–ƒš”‡–—”ƒ‰ƒ‹•––Š‡–‘–ƒŽ–ƒš’ƒ›ƒ„Ž‡Ǥ
Š‡…—–Ǧ‘ˆˆ†ƒ–‡ˆ‘”‹••—‹‰ ‘”ͳ͸‹•͵ͳ•–ƒ›‘ˆ–Š‡‡š– ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–ƒš‹•†‡†—…–‡†Ǥ
’ƒ”–ˆ”‘‹••—‡‘ˆˆ‘”ͳ͸ ‘”ǡ ‘”ͳʹ‹•ƒŽ•‘‹••—‡†–Šƒ–…‘–ƒ‹•†‡–ƒ‹Ž•‘ˆ’‡”“—‹•‹–‡•Ƭ”‘ϐ‹–‹Ž‹‡—‘ˆ
•ƒŽƒ”›…Šƒ”‰‡ƒ„Ž‡—†‡”•‡…–‹‘ͳ͹ȋ͵Ȍ‘ˆ–Š‡…–Ǥ
•’‡”—Ž‡ʹ͸ǡƒ‡’Ž‘›‡‡•ŠƒŽŽˆ—”‹•Š–‘‡’Ž‘›‡”‡˜‹†‡…‡‘”’ƒ”–‹…—Žƒ”•‘ˆ–Š‡…Žƒ‹•ƒ†‡‹ ‘”‘Ǥͳʹ
ˆ‘”–Š‡’—”’‘•‡‘ˆ‡•–‹ƒ–‹‘‘ˆŠ‹•‹…‘‡ƒ†Ǥ
Premature withdrawal from Employees’ Provident Fund Scheme (EPFS) [Section 192A]
‹–Š†”ƒ™ƒŽ‘ˆ–Š‡ƒ……——Žƒ–‡†„ƒŽƒ…‡Ž›‹‰‹ƒ‡…‘‰‹•‡†”‘˜‹†‡– —†ȋ Ȍƒ……‘—–ǡ‹•‡š‡’–ˆ”‘–ƒš‹ˆ
–Š‡‡’Ž‘›‡‡”‡†‡”•…‘–‹—‘—••‡”˜‹…‡™‹–Š–Š‡‡’Ž‘›‡”ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•‘”‘”‡Ǥ…ƒ•‡‘ˆ…‡••ƒ–‹‘
‘ˆ‡’Ž‘›‡–ǡ‹ˆ–Š‡‡’Ž‘›‡‡–ƒ‡•—’ƒ‡’Ž‘›‡–™‹–Šƒ‘–Š‡”‡’Ž‘›‡”ƒ†–Š‡ƒ……——Žƒ–‡†„ƒŽƒ…‡‹
Š‡”ȀŠ‹•   ƒ……‘—– ‹• –”ƒ•ˆ‡””‡† –‘ Š‡”ȀŠ‹•   ƒ……‘—– ƒ‹–ƒ‹‡† „› •—…Š ‘–Š‡” ‡’Ž‘›‡”ǡ –Š‡ ƒŽ•‘ –Š‡
‡š‡’–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡ƒ†–Š‡•ƒ‡‹•‘–Ž‹ƒ„Ž‡ˆ‘”–ƒšǤ
 …ƒ•‡ –Š‡ ƒ„‘˜‡ ‡–‹‘‡† …‘†‹–‹‘• ƒ”‡ ‘– •ƒ–‹•ϐ‹‡†ǡ –Š‡ ƒ……——Žƒ–‡† „ƒŽƒ…‡ †—‡ –‘ –Š‡ ‡’Ž‘›‡‡ ‹•
–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ–Š‡‡’Ž‘›‡‡Ǥ•—…Šƒ…ƒ•‡ǡ–ƒš‹•”‡“—‹”‡†–‘„‡…ƒŽ…—Žƒ–‡†„›”‡Ǧ…‘’—–‹‰–Š‡–ƒšŽ‹ƒ„‹Ž‹–›
‘ˆ–Š‡›‡ƒ”•ˆ‘”™Š‹…Š–Š‡…‘–”‹„—–‹‘–‘ Šƒ•„‡‡ƒ†‡ǡ„›–”‡ƒ–‹‰–Š‡•ƒ‡ƒ•…‘–”‹„—–‹‘–‘—”‡…‘‰‹•‡†
’”‘˜‹†‡–ˆ—†Ǥ
Š‡–”—•–‡‡•‘ˆƒ ƒ”‡”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡‘•—…Šƒ……——Žƒ–‡†„ƒŽƒ…‡ƒ––Š‡–‹‡‹–‹•’ƒ‹†ǡ ƒ•‹ˆ
•—…Š™‹–Š†”ƒ™ƒ‘—–™‡”‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†ƒŽƒ”‹‡•Ǥ‘™‡˜‡”ǡ‘ˆ–‡ǡ–Š‡–”—•–‡‡•†‹† ‘–Šƒ˜‡
–Š‡”‡“—‹•‹–‡‹ˆ‘”ƒ–‹‘–‘„‡‹ƒ’‘•‹–‹‘–‘…‘’—–‡–Š‡…‘””‡…–Ž›Ǥ‹–Šƒ˜‹‡™–‘•‹’Ž‹ˆ›–Š‡ ’”‘…‡••‘ˆ
†‡†—…–‹‘‹•—…Š…ƒ•‡•ǡ‡…–‹‘ͳͻʹ’”‘˜‹†‡•–Šƒ––”—•–‡‡•‘ˆ ••ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ –Š‡ƒ……——Žƒ–‡†
„ƒŽƒ…‡†—‡–‘–Š‡‡’Ž‘›‡‡ǡ†‡†—…––ƒšƒ–•‘—”…‡ƒ––Š‡”ƒ–‡‘ˆͳͲΨǡ™Š‡”‡–Š‡ƒ‰‰”‡‰ƒ–‡ ™‹–Š†”ƒ™ƒŽ‹••Ǥ
ͷͲǡͲͲͲ‘”‘”‡Ǥ
– –Š‡ •ƒ‡ –‹‡ǡ ‹ˆ –Š‡ …‘…‡”‡† ‡’Ž‘›‡‡ ˆƒ‹Ž• –‘ ˆ—”‹•Š Š‡”ȀŠ‹• ’‡”ƒ‡– ƒ……‘—– —„‡” ȋȌ –‘ –Š‡
’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”†‡†—…–‹‰•—…Š–ƒšǡ–Š‡–ƒš•ŠƒŽŽ„‡†‡†—…–‡†ƒ––Š‡”ƒ–‡‘ˆʹͲΨƒ•’‡”‡…–‹‘ʹͲ͸Ǥ–Šƒ•
ƒŽ•‘„‡‡’”‘˜‹†‡†–Šƒ––ƒš•ŠƒŽŽ‘–„‡†‡†—…–‡†‹ˆ–Š‡‡’Ž‘›‡‡ˆ—”‹•Š‡•–‘–Š‡’ƒ›‡”ƒ•‡ŽˆǦ†‡…Žƒ”ƒ–‹‘ ‹ –Š‡
’”‡•…”‹„‡† ‘”‘Ǥͳͷ
Ȁͳͷǡ†‡…Žƒ”‹‰–Šƒ––Š‡–ƒš‘Š‡”ȀŠ‹•‡•–‹ƒ–‡†–‘–ƒŽ‹…‘‡‘ˆ–Š‡”‡Ž‡˜ƒ– ’”‡˜‹‘—•
›‡ƒ”™‘—Ž†„‡‹ŽǤ

Interest on Securities [Section 193]

Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘•‡…—”‹–‹‡••ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ
…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›‹••—‡‘ˆƒ…Š‡“—‡
‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”†‡†—…–‹…‘‡Ǧ–ƒšƒ––Š‡”ƒ–‡•‹ˆ‘”…‡‘–Š‡ƒ‘—–‘ˆ–Š‡
‹–‡”‡•–’ƒ›ƒ„Ž‡Ǥ
”‡†‹–‘ˆƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‘•‡…—”‹–‹‡•–‘ƒ›ƒ……‘—–ǡ™Š‡–Š‡”…ƒŽŽ‡†Dz–‡”‡•–’ƒ›ƒ„Ž‡ƒ……‘—–dz‘”
Dz—•’‡•‡ƒ……‘—–dz‘”„›ƒ›‘–Š‡”ƒ‡‹–Š‡„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡’‡”•‘Ž‹ƒ„Ž‡–‘’ƒ›•—…Š‹…‘‡ǡ‹•ǡˆ‘”–Š‡
 Lesson 9 Ȉ Procedural Compliance 505

’—”’‘•‡•‘ˆ‡…–‹‘ͳͻ͵ǡ†‡‡‡†–‘„‡…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡’ƒ›‡‡ƒ†ƒ––”ƒ…–•ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ–Š‡’”‘˜‹•‹‘•
‘ˆ‡…–‹‘ͳͻ͵Ǥ
‘™‡˜‡”ǡ–ƒš•ŠƒŽŽ‘–„‡†‡†—…–‡†ˆ”‘–Š‡‹–‡”‡•–‘–Š‡ˆ‘ŽŽ‘™‹‰•‡…—”‹–‹‡•ǣ
ȋ‹Ȍ ‡„‡–—”‡• ‹••—‡† „› ‘Ǧ‘’‡”ƒ–‹˜‡ ‘…‹‡–› ȋ‹…Ž—†‹‰ ‘Ǧ‘’‡”ƒ–‹˜‡ ƒ† ‘”–‰ƒ‰‡ ƒ• ‘” ‘Ǧ‘’‡”ƒ–‹˜‡
ƒ†‡˜‡Ž‘’‡– ƒ•Ȍ‘”ƒ›‘–Š‡”‹•–‹–—–‹‘ ‘”ƒ—–Š‘”‹–› ƒ•–Š‡‡–”ƒŽ
‘˜‡”‡– ƒ›•’‡…‹ˆ›
‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡Ǥ
ȋ‹‹Ȍ
‘Ž† „‘†• ’”‘˜‹†‡† –Š‡ ƒ••‡••‡‡ ‹• ƒ ”‡•‹†‡– ‹†‹˜‹†—ƒŽ ƒ† –Š‡ ‘‹ƒŽ ˜ƒŽ—‡ ‘ˆ –Š‡ „‘†• †‹† ‘–
‡š…‡‡†•ǤͳͲǡͲͲͲƒ–ƒ›–‹‡†—”‹‰–Š‡’‡”‹‘†–‘™Š‹…Š–Š‡‹–‡”‡•–”‡Žƒ–‡•
‘Ž†‡’‘•‹–‘†Ǧͳͻͻͻ
†‡ƒ–‡”‹ƒŽ‹•‡†‘†•Ǥ
ȋ‹‹‹Ȍ ‡…—”‹–‹‡•‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‘”–ƒ–‡
‘˜‡”‡–Ǥ
ȋ‹˜Ȍ –‡”‡•– ’ƒ‹† ‘” ’ƒ›ƒ„Ž‡ –‘ ƒ ‹†‹˜‹†—ƒŽǡ   –Š”‘—‰Š ƒ……‘—– ’ƒ›‡‡ …Š‡“—‡ —’–‘ •Ǥ ͷǡͲͲͲ ‘
†‡„‡–—”‡•Ž‹•–‡†Ȁ—Ž‹•‡†‹–‡”‡•–‘†‡ƒ–‡”‹ƒŽ‹•‡†•‡…—”‹–‹‡•Ǥ

 …ƒ „‡ ƒ†‡ ƒ– –Š‡ –‹‡ ‘ˆ ’ƒ›‡– ‘” ƒ– –Š‡ –‹‡ ‘ˆ …”‡†‹– –‘ –Š‡ ƒ……‘—– ‘ˆ –Š‡ ’ƒ›‡‡ ‘” –”ƒ•ˆ‡” –‘
‹–‡”‡•–’ƒ›ƒ„Ž‡ƒ‘—–‘”•—•’‡•‡ƒ……‘—–ǡ™Š‹…Š‡˜‡”…‘‡•‡ƒ”Ž‹‡”ǤŠ‡‹†‡–‹–›‘ˆ–Š‡’‡”•‘‹™Š‘•‡ Šƒ†
‹–‹•‹…Ž—†‹„Ž‡Šƒ˜‡–‘„‡‹†‡–‹ϐ‹‡†Ǥƒ•‡Žƒ™ǣȏ˜ǤȋʹͲͲ͸ȌͳͲͶͻ͹ȀͳͲͶʹ͵Ͳȋ—„ƒ‹ȌȐǤ

Rate of TDS :
Š‡”ƒ–‡‘ˆ‘–‡”‡•–‘•‡…—”‹–‹‡•‹•ͳͲΨǤ‘Š‡ƒŽ–Šƒ†‡†—…ƒ–‹‘…‡•••ŠƒŽŽ„‡ƒ††‡†–‘–Š‡”ƒ–‡ǤŠ‡”ƒ–‡‘ˆ
•ŠƒŽŽ„‡ʹͲΨ‹ˆ‹•‘–“—‘–‡†„›–Š‡’ƒ›‡‡Ǥ

TDS on Dividend [Section 194]

Š‡ ‘’ƒ› †‡…Žƒ”‹‰ ƒ† ’ƒ›‹‰ †‹˜‹†‡† ‘ •Šƒ”‡• „› ƒ› ‘†‡ ‹ †‹ƒ ‹• ”‡“—‹”‡† –‘ †‡†—…–  —†‡”
•‡…–‹‘ͳͻͶƒ––Š‡”ƒ–‡‘ˆͳͲΨǡ‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†Ȃ
ȋƒȌ Š‡†‹˜‹†‡†‹•’ƒ‹†–‘–Š‡•Šƒ”‡Š‘Ž†‡”™Š‘‹•”‡•‹†‡–‹†‹ƒǢƒ†
ȋ„Ȍ Š‡†‹˜‹†‡†…‘˜‡”‡†™‹–Š‹–Š‡‡ƒ‹‰‘ˆŽƒ—•‡ȋƒȌ–‘ȋ‡Ȍ•‡…–‹‘ʹȋʹʹȌǡƒ•†‹˜‹†‡†‹•‘™–ƒšƒ„Ž‡ ‹
–Š‡Šƒ†•‘ˆ”‡…‹’‹‡–•Šƒ”‡Š‘Ž†‡”Ǥ

”‘˜‹†‡†–Šƒ–‘•—…Š†‡†—…–‹‘•ŠƒŽŽ„‡ƒ†‡‹–Š‡…ƒ•‡‘ˆƒ•Šƒ”‡Š‘Ž†‡”ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽǡ‹ˆ–Š‡†‹˜‹†‡†‹•
’ƒ‹†„›–Š‡…‘’ƒ›„›ȏƒ›‘†‡‘–Š‡”–Šƒ…ƒ•ŠȐƒ†–Š‡ƒ‘—–‘ˆ•—…Š†‹˜‹†‡††‹•–”‹„—–‡†‘”’ƒ‹††—”‹‰–Š‡
ϐ‹ƒ…‹ƒŽ›‡ƒ”†‘‡•‘–‡š…‡‡†•ǤͷǡͲͲͲǤȏ•ƒ‡†‡†„› ‹ƒ…‡…–ǡʹͲʹͲȐ
–‹•‹’‘”–ƒ––‘‘–‡–Šƒ––Š‡†‹˜‹†‡†”‡ˆ‡””‡†ƒ„‘˜‡…‘˜‡”•–Š‡†‹˜‹†‡†•‘’”‡ˆ‡”‡…‡•Šƒ”‡•ƒŽ•‘Ǥ
‡…–‹‘ͳͻͶ‘ˆ–Š‡…–ƒ‡†‡†–‘’”‘˜‹†‡ˆ‘”‡š‡’–‹‘™‹–Š”‡•’‡…––‘™‹–ŠŠ‘Ž†‹‰–ƒš‘†‹˜‹†‡†’ƒ‹†„›ƒ
ȏƒ•”‡ˆ‡””‡†–‘‹š’Žƒƒ–‹‘–‘‡…–‹‘ͳͲȋʹ͵ Ȍ‘ˆ–Š‡…–Ȑ–‘ƒ„—•‹‡••–”—•–ȏƒ•†‡ϐ‹‡†—†‡”‡…–‹‘ʹȋͳ͵Ȍ
‘ˆ–Š‡…–Ȑ‘”ƒ›‘–Š‡”’‡”•‘ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‹ˆϐ‹…‹ƒŽ
ƒœ‡––‡Ǥȏ‡†‡–˜‹†‡
Finance Act, 2021]

Interest other than Interest on Securities [Section 194A]

›’‡”•‘‘–„‡‹‰ƒ‹†‹˜‹†—ƒŽ‘”ƒǤǤ Ǥ™Š‘‹•”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ƒ›‹…‘‡„›™ƒ› ‘ˆ
‹–‡”‡•–‘–Š‡”–Šƒ‹–‡”‡•–‘•‡…—”‹–‹‡•ƒ‘—–‹‰–‘‘”‡–Šƒ•ǤͷǡͲͲͲ‘”•ǤͶͲǡͲͲͲ‘”•ǤͷͲǡͲͲͲ ‹…ƒ•‡‘ˆ
•‡‹‘” …‹–‹œ‡ ™Ǥ‡ǤˆǤ ͲͳǤͲͶǤʹͲͳͺ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ •ŠƒŽŽǡ ƒ– –Š‡ –‹‡ ‘ˆ …”‡†‹–‹‰ –‘ –Š‡ ’ƒ›‡‡ ‘” ƒ– –Š‡–‹‡‘ˆ
’ƒ›‡–‘ˆ–Š‡‹–‡”‡•–ǡ†‡†—…––ƒšƒ––Š‡’”‡•…”‹„‡†”ƒ–‡•Ǥ
‘™‡˜‡”ǡƒ‹†‹˜‹†—ƒŽ‘”ƒ ǡ™Š‘•‡–‘–ƒŽ•ƒŽ‡•ǡ‰”‘••”‡…‡‹’–•‘”–—”‘˜‡”ˆ”‘–Š‡„—•‹‡••‘”’”‘ˆ‡••‹‘ …ƒ””‹‡†
‘„›Š‹‡š…‡‡†••Ǥͷ…”‘”‡‹…ƒ•‡‘ˆ„—•‹‡••ƒ†•ǤͷͲŽƒŠ•‹…ƒ•‡‘ˆƒ’”‘ˆ‡••‹‘†—”‹‰–Š‡ ϐ‹ƒ…‹ƒŽ›‡ƒ”
‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡ƒˆ‘”‡•ƒ‹†ƒ‘—–‹•…”‡†‹–‡†‘”’ƒ‹†ǡ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘†‡†—…–
–ƒš—†‡”•‡…–‹‘ͳͻͶǤ

Rate of Tax :
ȋ‹Ȍ ͳͲΨǡ‘•—”…Šƒ”‰‡ǡ‘”•ŠƒŽŽ„‡ƒ††‡†Ǥ
506 Lesson 9 Ȉ EP-TL

ȋ‹‹Ȍ Š‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ
‘™‡˜‡”ǡ–Š‡–ƒš•ŠƒŽŽ‘–„‡†‡†—…–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ȋ‹Ȍ Š‡”‡ –Š‡ ’ƒ›‡‡ ‹• ƒ „ƒ‹‰ ‘’ƒ›ǡ ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ‡‰ƒ‰‡† ‹ …ƒ””›‹‰ ‘ –Š‡ „—•‹‡•• ‘ˆ
„ƒ‹‰ ‘” ƒ› †‡’‘•‹– ™‹–Š ’‘•– ‘ˆϐ‹…‡ —†‡” ƒ› •…Š‡‡ ˆ”ƒ‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ†
‘–‹ϐ‹‡†„› ‹–‹–Š‹•„‡ŠƒŽˆǡƒ†–Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—– ‘ˆ‹–‡”‡•–…”‡†‹–‡†‘”’ƒ‹††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ
›‡ƒ”†‘‡•‘–‡š…‡‡†•ǤͶͲǡͲͲͲ‘”•ǤͷͲǡͲͲͲ‹…ƒ•‡‘ˆ•‡‹‘”…‹–‹œ‡Ǥ
ȋ‹‹Ȍ Š‡”‡–Š‡’ƒ›‡‡‹•‘–Š‡”–Šƒ–Š‡ȋ‹Ȍƒ„‘˜‡ƒ†–Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ‹–‡”‡•–’ƒ‹†‘”…”‡†‹–‡††‘‡• ‘–
‡š…‡‡†•ǤͷǡͲͲͲǤ
 Š‡ ƒˆ‘”‡•ƒ‹† Ž‹‹–• ™‡”‡ …‘’—–‡† ™‹–Š ”‡ˆ‡”‡…‡ –‘ –Š‡ ‹…‘‡ …”‡†‹–‡† ‘” ’ƒ‹† „› ƒ „”ƒ…Š ‘ˆ –Š‡
„ƒ‹‰…‘’ƒ›‘”–Š‡…‘‘’‡”ƒ–‹˜‡•‘…‹‡–›ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥƒ›„ƒ†‡’‘•‹–‘”•ƒ˜‘‹†‡† ˆ”‘
‹–‡”‡•–‘„ƒϐ‹š‡††‡’‘•‹–•„›•’Ž‹––‹‰–Š‡‹”†‡’‘•‹–•ƒ‘‰•–†‹ˆˆ‡”‡–„”ƒ…Š‡•‘ˆ–Š‡•ƒ‡„ƒǤ
‹–Šƒ˜‹‡™–‘…—”„‹‰–Š‹•’”ƒ…–‹…‡ǡ’”‘˜‹•‘–‘‡…–‹‘ͳͻͶȋ͵Ȍ’”‘˜‹†‡•–Šƒ–—†‡”‡…–‹‘ ͳͻͶ™‹ŽŽ
„‡™‹–Š”‡ˆ‡”‡…‡–‘‹…‘‡…”‡†‹–‡†‘”’ƒ‹†„›–Š‡„ƒ•ƒ•ƒ™Š‘Ž‡ȋ‹–Š‘•‡…ƒ•‡•™Š‡”‡ …‘”‡„ƒ‹‰
•‘Ž—–‹‘•Šƒ˜‡„‡‡ƒ†‘’–‡†„›–Š‡…‘…‡”‡†„ƒȌǤ
ȋ‹‹‹Ȍ Š‡”‡ –Š‡ ‹–‡”‡•– …”‡†‹–‡† ‘” ’ƒ‹† –‘ ƒ „ƒ‹‰ …‘’ƒ›ǡ ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› †‘‹‰ „ƒ‹‰
„—•‹‡••ǡ ‹ƒ…‹ƒŽ‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›ƒ‡–”ƒŽ‘”–ƒ–‡…–ǡ–Š‡‹ˆ‡•—”ƒ…‡‘”’‘”ƒ–‹‘‘ˆ†‹ƒǡ
–Š‡‹–”—•–‘ˆ†‹ƒǡƒ›…‘’ƒ›‘”…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›…ƒ””›‹‰‘–Š‡‹•—”ƒ…‡„—•‹‡•• ƒ†ƒ›
‘–Š‡”‹•–‹–—–‹‘™Š‹…Š–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›‘–‹ˆ›‹–Š‹•„‡ŠƒŽˆǤ
ȋ‹˜Ȍ –‡”‡•–…”‡†‹–‡†‘”’ƒ‹†„›ƒϐ‹”–‘‹–•’ƒ”–‡”•Ǥ
ȋ˜Ȍ –‡”‡•– …”‡†‹–‡† ‘” ’ƒ‹† „› ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ’ƒ‹† „› ƒ …‘Ǧ‘’‡”ƒ–‹˜‡ •‘…‹‡–› ȋ‘–Š‡” –Šƒ ƒ …‘Ǧ
‘’‡”ƒ–‹˜‡„ƒȌ–‘ƒ‡„‡”–Š‡”‡‘ˆ‘”–‘•—…Š‹…‘‡…”‡†‹–‡†‘”’ƒ‹†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‘”–‘ ƒ›
‘–Š‡”…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǥ
ȋ˜‹Ȍ Š‡”‡‹–‡”‡•–…”‡†‹–‡†‘”’ƒ‹†‹”‡•’‡…–‘ˆ†‡’‘•‹–•—†‡”ƒ›•…Š‡‡ˆ”ƒ‡†„›‡–”ƒŽ
‘˜‡”‡–Ǥ
ȋ˜‹‹Ȍ –‡”‡•–…”‡†‹–‡†‘”’ƒ‹†‹”‡•’‡…–‘ˆ†‡’‘•‹–•‘–Š‡”–Šƒ–‹‡†‡’‘•‹–•™‹–Šƒ„ƒ‹‰…‘’ƒ›–‘™Š‹…Š
–Š‡ƒ‹‰‡‰—Žƒ–‹‘…–ǡͳͻͶͻƒ’’Ž‹‡•Ǥ
ȋ˜‹‹‹Ȍ …‘‡…”‡†‹–‡†‘”’ƒ‹†‹”‡•’‡…–‘ˆ†‡’‘•‹–•™‹–Šƒ’”‹ƒ”›ƒ‰”‹…—Ž–—”ƒŽ…”‡†‹–•‘…‹‡–›‘”…‘‘’‡”ƒ–‹˜‡
•‘…‹‡–›‡‰ƒ‰‡†‹…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ„ƒ‹‰‹…Ž—†‹‰ƒ…‘‘’‡”ƒ–‹˜‡Žƒ†‘”–‰ƒ‰‡„ƒ‘”ƒ
…‘‘’‡”ƒ–‹˜‡Žƒ††‡˜‡Ž‘’‡–„ƒǤ
ȋ‹šȌ …‘‡…”‡†‹–‡†‘”’ƒ‹†„›–Š‡‡–”ƒŽ
‘˜‡”‡–—†‡”…‘‡ƒš…–ǡͳͻ͸ͳ‘”†‹ƒ…‘‡ƒš…–ǡ
ͳͻʹʹ‘”–Š‡•–ƒ–‡—–›…–ǡͳͻͷ͵‘”–Š‡‘’ƒ‹‡•ȋ”‘ϐ‹–•Ȍ—”–ƒšƒš…–ǡͳͻ͸ͶǤ
ȋšȌ …‘‡™Š‹…Š‹•’ƒ‹†‘”’ƒ›ƒ„Ž‡„›ƒ‹ˆ”ƒ•–”—…–—”‡…ƒ’‹–ƒŽ…‘’ƒ›‘”‹ˆ”ƒ•–”—…–—”‡…ƒ’‹–ƒŽˆ—†‘”ƒ
’—„Ž‹…•‡…–‘”…‘’ƒ›‹”‡Žƒ–‹‘–‘ƒœ‡”‘…‘—’‘„‘†‹••—‡†„›•—…Š…‘’ƒ›‘”ˆ—†‘”’—„Ž‹…•‡…–‘”
…‘’ƒ›Ǥ
ȋš‹Ȍ ‘•—…Š‹…‘‡…”‡†‹–‡†‘”’ƒ‹†„›™ƒ›‘ˆ‹–‡”‡•–‘–Š‡…‘’‡•ƒ–‹‘ƒ‘—–ƒ™ƒ”†‡†„›–Š‡‘–‘”
……‹†‡–•Žƒ‹•”‹„—ƒŽǤ
ȋš‹ƒȌ ‘•—…Š‹…‘‡’ƒ‹†„›™ƒ›‘ˆ‹–‡”‡•–‘–Š‡…‘’‡•ƒ–‹‘ƒ‘—–ƒ™ƒ”†‡†„›–Š‡‘–‘”……‹†‡–•
Žƒ‹•”‹„—ƒŽ™Š‡”‡–Š‡ƒ‘—–‘ˆ•—…Š‹…‘‡‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‘ˆ
•—…Š‹…‘‡’ƒ‹††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”†‘‡•‘–‡š…‡‡†ϐ‹ˆ–›–Š‘—•ƒ†”—’‡‡•Ǥ
ȋš‹‹Ȍ ‘ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋʹ͵ Ȍ‘ˆ•‡…–‹‘ͳͲǤ
ȋš‹‹‹Ȍ –‡”‡•–’ƒ‹†‘”’ƒ›ƒ„Ž‡„›ƒ‹ˆ”ƒ•–”—…–—”‡…ƒ’‹–ƒŽ…‘’ƒ›‘”‹ˆ”ƒ•–”—…–—”‡…ƒ’‹–ƒŽˆ—†‘”ƒ’—„Ž‹…
•‡…–‘” …‘’ƒ› ‘” •…Š‡†—Ž‡† „ƒ ‹ ”‡Žƒ–‹‘ –‘ ƒ œ‡”‘ …‘—’‘ „‘† ‹••—‡† „› –Š‡Ǥ – ‹• ‘™
’”‘’‘•‡† –‘ ™‹†‡ –Š‡ •…‘’‡ ‘ˆ –Š‡ ƒ„‘˜‡ ‡š‡’–‹‘ –‘ ‹…Ž—†‡ ‹–‡”‡•– ’ƒ‹† ‘” ’ƒ›ƒ„Ž‡ „› ƒ
‹ˆ”ƒ•–”—…–—”‡ †‡„– ˆ—† ‹ ”‡Žƒ–‹‘ –‘ ƒ œ‡”‘ …‘—’‘ „‘† ‹••—‡† „› •—…Š ˆ—†Ǥ [Amended vide
Finance Act, 2021]
 Lesson 9 Ȉ Procedural Compliance 507

‘•—ƒ”‹•‡ǡ‘–ƒš‹•”‡“—‹”‡†–‘„‡†‡†—…–‡†‹ˆƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ‹–‡”‡•–…”‡†‹–‡†‘”’ƒ‹†–‘–Š‡’ƒ›‡‡‹
”‡•’‡…–‘ˆ–‹‡†‡’‘•‹–†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”†‘‡•ǯ–‡š…‡‡†–Š‡ˆ‘ŽŽ‘™‹‰Ž‹‹–ǣ

Threshold limit if Payee is

Payer
‡‹‘”‹–‹œ‡ –Š‡”•
ƒ‹‰‘’ƒ› ͷͲǡͲͲͲ ͶͲǡͲͲͲ
‘Ǧ‘’‡”ƒ–‹˜‡‘…‹‡–›‡‰ƒ‰‡†‹„ƒ‹‰—•‹‡•• ͷͲǡͲͲͲ ͶͲǡͲͲͲ
‘•–ˆϐ‹…‡ ͷͲǡͲͲͲ ͶͲǡͲͲͲ
ƒ›‘–Š‡”…ƒ•‡ ͷǡͲͲͲ ͷǡͲͲͲ

Š‡…‡‹Ž‹‰Ž‹‹–ƒ••’‡…‹ϐ‹‡†ƒ„‘˜‡•ŠƒŽŽ‘–„‡…‘’—–‡†„”ƒ…ŠǦ™‹•‡‹ˆ•—…Š„ƒ‹‰…‘’ƒ›‘”…‘Ǧ‘’‡”ƒ–‹˜‡
•‘…‹‡–› ‘” ’—„Ž‹… …‘’ƒ› Šƒ• ƒ†‘’–‡† ‘”‡ ƒ‹‰ ‘Ž—–‹‘• ȋȌǤ ‘” –Š‡ ƒ„‘˜‡ ’—”’‘•‡• Dz–‹‡ †‡’‘•‹–•dz
‡ƒ•†‡’‘•‹–•‹…Ž—†‹‰”‡…—””‹‰†‡’‘•‹–•”‡’ƒ›ƒ„Ž‡‘–Š‡‡š’‹”›‘ˆϐ‹š‡†’‡”‹‘†•Ǥ
Š‡”‡•’‘•‹„Ž‡’‡”•‘ƒ›ǡƒ––Š‡–‹‡‘ˆƒ‹‰ƒ›†‡†—…–‹‘‹…”‡ƒ•‡‘””‡†—…‡–Š‡ƒ‘—––‘„‡†‡†—…–‡†ˆ‘”
–Š‡’—”’‘•‡‘ˆƒ†Œ—•–‹‰ƒ›‡š…‡••‘”†‡ϐ‹…‹‡…›ƒ”‹•‹‰‘—–‘ˆƒ›’”‡˜‹‘—•†‡†—…–‹‘•‘”ˆƒ‹Ž—”‡–‘†‡†—…–†—”‹‰
–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
‘–‡ǣ Š‡“—‡ †‹•…‘—–‡† …Šƒ”‰‡• ƒ”‡ †‹ˆˆ‡”‡– ˆ”‘ ‹–‡”‡•– ’ƒ›‡–• ƒ† ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ͳͻͶ ƒ”‡ ‘–
ƒ––”ƒ…–‡†Ǥ˜ǤǤǤƒ„—ƒŠȋʹͲͲ͵Ȍͺ͸ʹͺ͵ȋƒ†ǤȌ
‘–‡ǣ›…‘‡…”‡†‹–‡†‘”’ƒ‹†„›‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ȋ‘–Š‡”–Šƒƒ…‘Ǧ‘’‡”ƒ–‹˜‡„ƒȌ–‘ƒ‡„‡”–Š‡”‡‘ˆ‘”
–‘•—…Š‹…‘‡…”‡†‹–‡†‘”’ƒ‹†„›ƒ…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›–‘ƒ›‘–Š‡”…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›ƒ†ƒ›‹…‘‡…”‡†‹–‡†
‘”’ƒ‹†‘†‡’‘•‹–•™‹–Šƒ’”‹ƒ”›ƒ‰”‹…—Ž–—”ƒŽ…”‡†‹–•‘…‹‡–›‘”ƒ’”‹ƒ”›…”‡†‹–•‘…‹‡–›ƒ•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ˜Ȍ
‘”…Žƒ—•‡ȋ˜‹‹ƒȌ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘†‡†—…–ǡ‹ˆȂ
ȋƒȌ –Š‡–‘–ƒŽ•ƒŽ‡•ǡ‰”‘••”‡…‡‹’–•‘”–—”‘˜‡”‘ˆ–Š‡…‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›‡š…‡‡†•ͷͲ”‘”‡”—’‡‡•†—”‹‰
–Š‡ˆ‹ƒ…‹ƒŽ›‡ƒ”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡‹–‡”‡•–‹•…”‡†‹–‡†‘”’ƒ‹†Ǣƒ†
ȋ„Ȍ –Š‡ƒ‘—–‘ˆ‹–‡”‡•–ǡ‘”–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‘ˆ•—…Š‹–‡”‡•–ǡ…”‡†‹–‡†‘”’ƒ‹†ǡ‘”‹•Ž‹‡Ž›–‘„‡
…”‡†‹–‡† ‘” ’ƒ‹†ǡ †—”‹‰ –Š‡ ϐ‹ƒ…‹ƒŽ ›‡ƒ” ‹• ‘”‡ –Šƒ ͷͲǡͲͲͲ ”—’‡‡• ‹ …ƒ•‡ ‘ˆ ’ƒ›‡‡ „‡‹‰ ƒ •‡‹‘”
…‹–‹œ‡ƒ†ͶͲǡͲͲͲ”—’‡‡•‹ƒ›‘–Š‡”…ƒ•‡Ǥ[Amended by Finance Act, 2020]

Winnings from Lotteries or Crossword Puzzles [Section 194B]

Š‡ ’‡”•‘ ”‡•’‘•‹„Ž‡ ˆ‘” ’ƒ›‹‰ –‘ ƒ› ’‡”•‘ ƒ› ‹…‘‡ „› ™ƒ› ‘ˆ ™‹‹‰• ˆ”‘ Ž‘––‡”‹‡• ‘” …”‘••™‘”†
’—œœŽ‡•‘”…ƒ”†‰ƒ‡ƒ†‘–Š‡”‰ƒ‡‘ˆƒ›•‘”–ǡƒƒ‘—–‡š…‡‡†‹‰•ǤͳͲǡͲͲͲ•ŠƒŽŽ†‡†—…––ƒšƒ––Š‡’”‡•…”‹„‡†
”ƒ–‡•ƒ––Š‡–‹‡‘ˆ•—…Š’ƒ›‡–ƒ†ƒ•–ƒ–‡‡–‹ ‘”‘Ǥʹ͸Šƒ•–‘„‡ϐ‹Ž‡†„›–Š‡‡†‘ˆ–Š‡‘–Š‘ˆ —‡ˆƒŽŽ‹‰
‹–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
Rate of Tax :
Š‡’”‡•…”‹„‡†”ƒ–‡‹•͵ͲΨǤ‘•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†Ǥ
Important Points:
ȋ‹Ȍ Š‡–Š‡’”‹œ‡‹•‰‹˜‡’ƒ”–Ž›‹…ƒ•Šƒ†’ƒ”–Ž›‹‹†ǡ‹…‘‡Ǧ–ƒš™‹ŽŽ„‡†‡†—…–‡†ˆ”‘…ƒ•Š’”‹œ‡™‹–Š
”‡ˆ‡”‡…‡–‘–Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ–Š‡…ƒ•Š’”‹œ‡ƒ†–Š‡˜ƒŽ—‡‘ˆ–Š‡’”‹œ‡‹‹†Ǥ
ȋ‹‹Ȍ ƒš•ŠƒŽŽ„‡†‡†—…–‡†ˆ”‘˜ƒŽ—‡‘ˆ–Š‡’”‹œ‡‘‡›‰‹˜‡‘Ž›‹‹†Ǥ
ȋ‹‹‹Ȍ Š‡–Š‡’”‹œ‡‹•‰‹˜‡‹‹•–ƒŽŽ‡–•ǡ–Š‡–ƒš™‹ŽŽ„‡†‡†—…–‡†‘Ž›ƒ––Š‡–‹‡‘ˆƒ…–—ƒŽ’ƒ›‡–‘ˆ‡ƒ…Š
‹•–ƒŽŽ‡–Ǥ
ȋ‹˜Ȍ …‘‡Ǧ–ƒš‹•†‡†—…–‹„Ž‡ˆ”‘–Š‡‹…‘‡„›™ƒ›‘ˆ„‘—•‘”…‘‹••‹‘’ƒ‹†–‘Ž‘––‡”›ƒ‰‡–‘”•‡ŽŽ‡”•
‘ˆŽ‘––‡”›–‹…‡–•‘–Š‡•ƒŽ‡•ƒ†‡„›–Š‡—†‡”‡…–‹‘ͳͻͶǤ
”‹œ‡•™‘„›Ž‘––‡”›ƒ‰‡–—†‡”Dz—…›†‹’†”ƒ™•dzƒ”‡Ž‘––‡”‹‡•ˆ‘”–Š‡’—”’‘•‡•‘ˆ†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡Ǥ
 508 Lesson 9 Ȉ EP-TL

Winnings from Horse Races [Section 194BB]

…‘‡Ǧ–ƒšŠƒ•–‘„‡†‡†—…–‡†ƒ–•‘—”…‡ˆ”‘ƒ›‹…‘‡„›™ƒ›‘ˆ™‹‹‰•ˆ”‘Š‘”•‡”ƒ…‡•ƒ–”ƒ–‡‘ˆ͵ͲΨǤ
‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡™‹ŽŽ„‡ƒ†‡‘Ž›‹…ƒ•‡•™Š‡”‡–Š‡‹…‘‡„›™ƒ›‘ˆ™‹‹‰•ˆ”‘Š‘”•‡”ƒ…‡•
–‘„‡’ƒ‹†–‘ƒ’‡”•‘‡š…‡‡†••ǤͳͲǡͲͲͲǤŠ‡‘„Ž‹‰ƒ–‹‘–‘†‡†—…––ƒšƒ–•‘—”…‡™‹ŽŽƒ’’Ž›‘Ž›™Š‡”‡•—…Š
™‹‹‰•ƒ”‡’ƒ‹†„›ƒ„‘‘ƒ‡”‘”ƒ’‡”•‘–‘™Š‘ƒŽ‹…‡…‡Šƒ•„‡‡‰”ƒ–‡†„›–Š‡
‘˜‡”‡–—†‡”
ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ˆ‘”Š‘”•‡”ƒ…‹‰‹ƒ›”ƒ…‡…‘—”•‡‘”ˆ‘”ƒ””ƒ‰‹‰ˆ‘”™ƒ‰‡”‹‰‘”„‡––‹‰
‹ƒ›”ƒ…‡…‘—”•‡Ǥ

Rate of Tax :
Š‡’”‡•…”‹„‡†”ƒ–‡‹•͵ͲΨǤ‘•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†Ǥ

Payment to Resident Contractor or Sub-contractor [Section 194C]

›’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰ƒ›•—–‘”‡•‹†‡–…‘–”ƒ…–‘”ˆ‘”…ƒ””›‹‰‘—–ƒ›™‘”ȋ‹…Ž—†‹‰•—’’Ž› ‘ˆ
Žƒ„‘—”ˆ‘”…ƒ””›‹‰‘—–ƒ›™‘”Ȍ‹’—”•—ƒ…‡‘ˆƒ…‘–”ƒ…–•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š•—–‘–Š‡ƒ……‘—–
‘ˆ–Š‡…‘–”ƒ…–‘”‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ› ‘–Š‡”‘†‡ǡ
™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘Ǥ
Rate of Tax :
ȋ‹Ȍ ͳΨ™Š‡”‡–Š‡’ƒ›‡–‹•„‡‹‰ƒ†‡‘”…”‡†‹–‹•„‡‹‰‰‹˜‡–‘ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž›Ǣ
ȋ‹‹Ȍ ʹΨ™Š‡”‡–Š‡’ƒ›‡–‹•„‡‹‰ƒ†‡‘”…”‡†‹–‹•„‡‹‰‰‹˜‡–‘ƒ’‡”•‘‘–Š‡”–Šƒƒ‹†‹˜‹†—ƒŽ‘”ƒ
‹†——†‹˜‹†‡†ˆƒ‹Ž›ǡ‘ˆ•—…Š•—ƒ•‹…‘‡Ǧ–ƒš‘‹…‘‡…‘’”‹•‡†–Š‡”‡‹Ǥ
Ȉ ‘•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†Ǥ
Ȉ Š‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ
†‡”–Š‡ˆ‘ŽŽ‘™‹‰…‹”…—•–ƒ…‡•ǡ—Ȁ•ͳͻͶ‹•‘–”‡“—‹”‡†–‘„‡†‡†—…–‡†Ȃ
ƒǤ Š‡ƒ‘—–’ƒ‹†‘”…”‡†‹–‡†–‘–Š‡…‘–”ƒ…–‘”‹ƒ•‹‰Ž‡…‘–”ƒ…–†‘‡•ǯ–‡š…‡‡†•͵ͲǡͲͲͲǤ
„Ǥ Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–’ƒ‹†‘”…”‡†‹–‡††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”†‘‡•ǯ–‡š…‡‡†•ǤͳǡͲͲǡͲͲͲǤ
…Ǥ Š‡ƒ‘—–’ƒ‹†Ȁ…”‡†‹–‡†–‘–Š‡ƒ……‘—–‘ˆ–Š‡…‘–”ƒ…–‘”‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆŠ‹”‹‰ǡ’Ž›‹‰ ‘”
Ž‡ƒ•‹‰‰‘‘†•…ƒ””‹ƒ‰‡ǡ™Š‡”‡–Š‡…‘–”ƒ…–‘”†‘‡•ǯ–‘™‘”‡–ŠƒͳͲ‰‘‘†•…ƒ””‹ƒ‰‡ƒ–ƒ›–‹‡†—”‹‰
–Š‡’”‡˜‹‘—•›‡ƒ”ǤŠ‡‘–”ƒ…–‘”‹•”‡“—‹”‡†–‘ˆ—”‹•Š–Š‡†‡…Žƒ”ƒ–‹‘ƒŽ‘‰™‹–Š–Š‡–‘–Š‡ ‡†—…–‘”Ǥ
†Ǥ Š‡ ƒ‘—– ‹• ’ƒ‹† ‘” …”‡†‹–‡† –‘ –Š‡ …‘–”ƒ…–‘” „› ƒ ‹†‹˜‹†—ƒŽ Ȁ   ˆ‘” …ƒ””›‹‰ ‘—– ™‘” ‹ –Š‡
ƒ–—”‡‘ˆ’‡”•‘ƒŽ—•‡Ǥ
ExplanationǦ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡǦ
ȋ‹Ȍ › ’‡”•‘ǡ „‡‹‰ ƒ ‹†‹˜‹†—ƒŽ ‘” ƒ ‹†— —†‹˜‹†‡† ˆƒ‹Ž› ‘” ƒ ƒ••‘…‹ƒ–‹‘ ‘ˆ ’‡”•‘• ‘” ƒ „‘†› ‘ˆ
‹†‹˜‹†—ƒŽ•ǡ‹ˆ•—…Š’‡”•‘ǡǦ
ȋƒȌ ‹•‘–…‘˜‡”‡†ƒ„‘˜‡Ǣƒ†
ȋ„Ȍ  ‹•Ž‹ƒ„Ž‡–‘ƒ—†‹–‘ˆƒ……‘—–•—†‡”…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ‘ˆ•‡…–‹‘ͶͶ†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š•—…Š•—‹•…”‡†‹–‡†‘”’ƒ‹†–‘–Š‡ƒ……‘—–‘ˆ–Š‡
…‘–”ƒ…–‘”Ǣ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘†‡†—…–‹…‘‡–ƒšˆ”‘•—…Š•—’ƒ‹†‘”…”‡†‹–‡†Ǥ
ȋ‹‹Ȍ “contract” •ŠƒŽŽ‹…Ž—†‡•—„Ǧ…‘–”ƒ…–Ǣ
ȋ‹‹‹Ȍ “work”•ŠƒŽŽ‹…Ž—†‡Ǧ
ȋƒȌ ƒ†˜‡”–‹•‹‰Ǣ
ȋ„Ȍ „”‘ƒ†…ƒ•–‹‰ ƒ† –‡Ž‡…ƒ•–‹‰ ‹…Ž—†‹‰ ’”‘†—…–‹‘ ‘ˆ ’”‘‰”ƒ‡• ˆ‘” •—…Š „”‘ƒ†…ƒ•–‹‰ ‘”
–‡Ž‡…ƒ•–‹‰Ǣ
ȋ…Ȍ …ƒ””‹ƒ‰‡‘ˆ‰‘‘†•‘”’ƒ••‡‰‡”•„›ƒ›‘†‡‘ˆ–”ƒ•’‘”–‘–Š‡”–Šƒ„›”ƒ‹Ž™ƒ›•Ǣ
 Lesson 9 Ȉ Procedural Compliance 509

ȋ†Ȍ …ƒ–‡”‹‰Ǣ
ȋ‡Ȍ ƒ—ˆƒ…–—”‹‰‘”•—’’Ž›‹‰ƒ’”‘†—…–ƒ……‘”†‹‰–‘–Š‡”‡“—‹”‡‡–‘”•’‡…‹ϐ‹…ƒ–‹‘‘ˆƒ…—•–‘‡”
„›—•‹‰ƒ–‡”‹ƒŽ’—”…Šƒ•‡†ˆ”‘•—…Š…—•–‘‡”‘”‹–•ƒ••‘…‹ƒ–‡ǡ„‡‹‰ƒ’‡”•‘’Žƒ…‡†•‹‹Žƒ”Ž›
‹”‡Žƒ–‹‘–‘•—…Š…—•–‘‡”ƒ•‹•–Š‡’‡”•‘’Žƒ…‡†‹”‡Žƒ–‹‘–‘–Š‡ƒ••‡••‡‡—†‡”–Š‡’”‘˜‹•‹‘•
…‘–ƒ‹‡†‹…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͶͲ„—–†‘‡•‘–‹…Ž—†‡ƒ—ˆƒ…–—”‹‰‘”
•—’’Ž›‹‰ƒ’”‘†—…–ƒ……‘”†‹‰–‘–Š‡”‡“—‹”‡‡–‘”•’‡…‹ϐ‹…ƒ–‹‘‘ˆƒ…—•–‘‡”„›—•‹‰ƒ–‡”‹ƒŽ
’—”…Šƒ•‡†ˆ”‘ƒ’‡”•‘ǡ‘–Š‡”–Šƒ•—…Š…—•–‘‡”‘”ƒ••‘…‹ƒ–‡‘ˆ•—…Š…—•–‘‡”Ǥ

Insurance Commission [Section 194D]

› ’‡”•‘ ”‡•’‘•‹„Ž‡ ˆ‘” ’ƒ›‹‰ –‘ƒ”‡•‹†‡–ƒ›‹…‘‡„›™ƒ›‘ˆ…‘‹••‹‘‘”‘–Š‡”™‹•‡ˆ‘”•‘Ž‹…‹–‹‰‘”
’”‘…—”‹‰ ‹•—”ƒ…‡ „—•‹‡•• ȋ‹…Ž—†‹‰ …‘–‹—ƒ…‡ ‘” ”‡‡™ƒŽ ‘ˆ ’‘Ž‹…‹‡•Ȍ •ŠƒŽŽǡ ƒ– –Š‡ –‹‡ ‘ˆ …”‡†‹–‹‰ –Š‡
ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘Ǥ‘†‡†—…–‹‘
•ŠƒŽŽ„‡ƒ†‡ˆ”‘–Š‡ƒ‘—–‘ˆƒ›•—…”‡†‹–‡†‘”’ƒ‹†–‘ǡ‹ˆ•—…Š•—†‘‡•‘–‡š…‡‡†•ǤͳͷǡͲͲͲ‘”‹…ƒ•‡
’ƒ›‡‡ Šƒ• ˆ—”‹•Š‡† •‡Žˆ †‡…Žƒ”ƒ–‹‘ —†‡” ‘” ͳͷ
 Ȁ ‘” ͳͷ †‡…Žƒ”‹‰ –Šƒ– –Š‡ –ƒš ‘ Š‹• ‡•–‹ƒ–‡† –‘–ƒŽ
‹…‘‡ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”™‘—Ž†„‡‹ŽǤ

Rate of Tax :
Š‡’”‡•…”‹„‡†”ƒ–‡‹•ͷΨˆ‘” ‡•‹†‡–’‡”•‘‘–Š‡”–Šƒƒ†‘‡•–‹……‘’ƒ›ƒ†ͳͲΨˆ‘”‘‡•–‹…‘’ƒ›Ǥ ‘
•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†ǤŠ‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡† ™‹–Š‡ˆˆ‡…–
ˆ”‘ͳ•–’”‹ŽʹͲͳͲ̷ʹͲΨǤ

Payment in respect of Life Insurance Policy [Section 194DA]

› ’‡”•‘ ”‡•’‘•‹„Ž‡ ˆ‘” ’ƒ›‹‰ –‘ ƒ ”‡•‹†‡– ƒ› •— —†‡” ƒ Ž‹ˆ‡ ‹•—”ƒ…‡ ’‘Ž‹…›ǡ ‹…Ž—†‹‰ –Š‡ •—
ƒŽŽ‘…ƒ–‡†„›™ƒ›‘ˆ„‘—•‘•—…Š’‘Ž‹…›ǡ‘–Š‡”–Šƒ–Š‡ƒ‘—–‘–‹…Ž—†‹„Ž‡‹–Š‡–‘–ƒŽ‹…‘‡—†‡”…Žƒ—•‡ ȋͳͲȌ
‘ˆ•‡…–‹‘ͳͲǡ•ŠƒŽŽƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆǡ†‡†—…–‹…‘‡Ǧ–ƒš‘‹…‘‡…‘’‘‡–‘ˆ–Š‡•—’ƒ‹†„›–Š‡
’‡”•‘Ǥ

Rate of Tax :
Š‡’”‡•…”‹„‡†”ƒ–‡‘ˆ–ƒš–‘„‡†‡†—…–‡†ƒ–•‘—”…‡‹•ͳΨ‘ˆ–Š‡•—’ƒ‹†—’–‘͵ͳǤͲͺǤʹͲͳͻƒ†™Ǥ‡ǤˆǤͲͳǤͲͻǤʹͲͳͻ̷ͷΨ‘ˆ
–Š‡‹…‘‡…‘’”‹•‡†‹–Š‡•—’ƒ‹†ǤŠ‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ
”‘˜‹†‡†–Šƒ–‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒ†‡™Š‡”‡ǣ
ƒǤ ƒ‰‰”‡‰ƒ–‡ƒ‘—–‘ˆ•—…Š’ƒ›‡–ƒ†‡–‘–Š‡’ƒ›‡‡‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”‹•Ž‡••–Šƒ•ǤͳŽƒŠǤ
„Ǥ Ž‹ˆ‡‹•—”ƒ…‡’‘Ž‹…›“—ƒŽ‹ϐ‹‡•ˆ‘”‡š‡’–‹‘—†‡”•‡…–‹‘ͳͲȋͳͲȌǤ
…Ǥ ‹…ƒ•‡’ƒ›‡‡Šƒ•ˆ—”‹•Š‡†•‡Žˆ†‡…Žƒ”ƒ–‹‘—†‡” ‘”ͳͷ
Ȁ ‘”ͳͷ†‡…Žƒ”‹‰–Šƒ––Š‡–ƒš‘Š‹•
‡•–‹ƒ–‡†–‘–ƒŽ‹…‘‡ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”™‘—Ž†„‡‹ŽǤ

Payment to a non-resident sportsmen / sports association [Section 194E]

Š‡”‡ƒ›’‡”•‘”‡•’‘•‹„Ž‡–‘’ƒ›ƒ›‹…‘‡ƒ•”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͳͷ–‘–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•Ȃ
ƒǤ ‘Ǧ”‡•‹†‡–•’‘”–•ƒȋ‹…Ž—†‹‰ƒƒ–ŠŽ‡–‡ȌǢ‘”
„Ǥ ‡–‡”–ƒ‹‡”™Š‘‹•‘–ƒ…‹–‹œ‡‘ˆ†‹ƒǢ‘”
…Ǥ ‘Ǧ”‡•‹†‡–•’‘”–•ƒ••‘…‹ƒ–‹‘Ȁ‹•–‹–—–‹‘Ǥ

—…Š’‡”•‘ƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š
‘”„›‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ•ŠƒŽŽ†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘ƒ––Š‡
”ƒ–‡‘ˆʹͲΨΪ—”…Šƒ”‰‡ǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ΪͶΨǤ
…‘‡—•–„‡‡ƒ”‡†„›•’‘”–•’‡”•‘ƒ•”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͳͷ„›™ƒ›‘ˆǣ
ƒǤ ’ƒ”–‹…‹’ƒ–‹‘‹†‹ƒ‹ƒ›‰ƒ‡ȋ‡š…Ž—†‹‰ƒ›…ƒ”†‰ƒ‡‘”‘–Š‡”‰ƒ‡•‘ˆ‰ƒ„Ž‹‰‘”„‡––‹‰•Ȍ‘”
•’‘”–•Ǣ‘”
 510 Lesson 9 Ȉ EP-TL

„Ǥ ƒ†˜‡”–‹•‡‡–Ǣ‘”
…Ǥ …‘–”‹„—–‹‘‘ˆƒ”–‹…Ž‡•”‡Žƒ–‹‰–‘ƒ›‰ƒ‡‘”•’‘”–‹†‹ƒ‹‡™•’ƒ’‡”•ǡƒ‰ƒœ‹‡•‘”Œ‘—”ƒŽ•

ƒ›‡–‹”‡•’‡…–‘ˆ‡’‘•‹–•—†‡”ƒ–‹‘ƒŽƒ˜‹‰•…Š‡‡‡–…Ǥȏ‡…–‹‘ͳͻͶȐ
Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ›’‡”•‘ƒ›ƒ‘—–‹”‡•’‡…–‘ˆ†‡’‘•‹–—†‡”ƒ–‹‘ƒŽƒ˜‹‰…Š‡‡ƒ•
”‡ˆ‡””‡†–‘‹‡…–‹‘ͺͲȋʹȌȋƒȌ•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆǡ†‡†—…–‹…‘‡Ǧ–ƒšƒ––Š‡”ƒ–‡‘ˆͳͲΨǤ‘
†‡†—…–‹‘•ŠƒŽŽǡŠ‘™‡˜‡”ǡ„‡ƒ†‡—†‡”‡…–‹‘ͳͻͶ™Š‡”‡–Š‡ƒ‘—–‘ˆ•—…Š’ƒ›‡–‘”–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ
•—…Š’ƒ›‡––‘–Š‡’ƒ›‡‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹•Ž‡••–Šƒ•ǤʹǡͷͲͲǤ —”–Š‡”ǡ‘–Š‹‰…‘–ƒ‹‡†‹‡…–‹‘
ͳͻͶ•ŠƒŽŽƒ’’Ž›–‘–Š‡’ƒ›‡–‘ˆ–Š‡•ƒ‹†ƒ‘—––‘–Š‡Š‡‹”•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
Rate of Tax :
Š‡’”‡•…”‹„‡†”ƒ–‡‹•ͳͲΨǤ‘•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†ǤŠ‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ
–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ

Commission on Sale of lottery tickets [Section 194G]

›’‡”•‘’ƒ›‹‰ƒ›‹…‘‡„›™ƒ›‘ˆ…‘‹••‹‘ǡ”‡—‡”ƒ–‹‘‘”’”‹œ‡ȋ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†Ȍ‘Ž‘––‡”›
–‹…‡–• ‘ ƒ‘—–• ‡š…‡‡†‹‰ •Ǥ ͳͷǡͲͲͲ •ŠƒŽŽ †‡†—…– ‹…‘‡Ǧ–ƒš ƒ– –Š‡ ”ƒ–‡ ‘ˆ ͷΨǤ ‘ •—”…Šƒ”‰‡ǡ …‡•• •ŠƒŽŽ „‡
ƒ††‡†ǤŠ‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨ‹””‡•’‡…–‹˜‡‘ˆ–Š‡ˆƒ…–
™Š‡–Š‡”–Š‡’ƒ›‡–‹•ƒ†‡‹…ƒ•Š‘”„›–Š‡‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǤŠ‡’”‘˜‹•‹‘•‘ˆ
‡…–‹‘ͳͻͶ
Šƒ˜‡„‡‡‡š–‡†‡†–‘ƒ›ƒ……‘—–ǡ™Š‡–Š‡”…ƒŽŽ‡†Ǯ•—•’‡•‡ƒ……‘—–ǯ‘”„›ƒ›‘–Š‡”ƒ‡‹–Š‡
„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡’‡”•‘Ž‹ƒ„Ž‡–‘’ƒ›Ǥ

Commission or Brokerage [Section 194H]

›’‡”•‘ǡ‘–„‡‹‰ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†—†‹˜‹†‡† ƒ‹Ž›ǡ™Š‘‹•”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ƒ›
‹…‘‡„›™ƒ›‘ˆ…‘‹••‹‘ȋ‘–„‡‹‰‹•—”ƒ…‡…‘‹••‹‘”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͻͶȌ‘”„”‘‡”ƒ‰‡ǡƒ†‹
…ƒ•‡‘ˆ†‹˜‹†—ƒŽȀ ǡ™Š‘•‡–‘–ƒŽ•ƒŽ‡•Ȁ‰”‘••”‡…‡‹’–•‘”–—”‘˜‡”‹–Š‡‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”
‡š…‡‡†•–Š‡‘‡–ƒ”›Ž‹‹–ƒ••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͶͶǡ•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–
‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ•—…Š‹…‘‡‹…ƒ•Š‘”„›–Š‡‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”
‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘ƒ––Š‡”ƒ–‡‘ˆͷΨǤ‘•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†ǤŠ‡
–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ
”‘˜‹†‡†–Šƒ–‘†‡†—…–‹‘••ŠƒŽŽ„‡ƒ†‡—†‡”–Š‹••‡…–‹‘‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ‘—–‘ˆ•—…Š‹…‘‡‘”ǡƒ•
–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‘ˆ•—…Š‹…‘‡…”‡†‹–‡†‘”’ƒ‹†‘”Ž‹‡Ž›–‘„‡…”‡†‹–‡†‘”’ƒ‹†
†—”‹‰–Š‡ˆ‹ƒ…‹ƒŽ›‡ƒ”–‘–Š‡ƒ……‘—–‘ˆǡ‘”–‘ǡ–Š‡’ƒ›‡‡ǡ†‘‡•‘–‡š…‡‡†•ǤͳͷǡͲͲͲǤ

Rent [Section 194-I]

›’‡”•‘‘–Š‡”–Šƒƒ‹†‹˜‹†—ƒŽ‘”ƒ ™Š‘‹•”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ƒ›‹…‘‡„›™ƒ›‘ˆ
”‡–‹•”‡“—‹”‡†–‘†‡†—…––ƒšˆ”‘”‡–‹ˆ•—…Š”‡–‹•‹‡š…‡••‘ˆ•ǤʹǡͶͲǡͲͲͲˆ‘”‡ƒ…Š…‘Ǧ‘™‡”’‡”ˆ‹ƒ…‹ƒŽ
›‡ƒ”Ǥƒš‹•–‘„‡†‡†—…–‡†̷ʹΨˆ‘”—•‡‘ˆƒ›ƒ…Š‹‡”›‘”’Žƒ–‘”‡“—‹’‡–Ǣƒ†̷ͳͲΨˆ‘”–Š‡—•‡‘ˆƒ›
Žƒ†‘”„—‹Ž†‹‰ȋ‹…Ž—†‹‰ˆƒ…–‘”›„—‹Ž†‹‰Ȍ‘”ˆ—”‹–—”‡‘”ˆ‹––‹‰•‘•—”…Šƒ”‰‡ǡ…‡•••ŠƒŽŽ„‡ƒ††‡†ǤŠ‡
–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ
Explanation ǣ ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••‡…–‹‘ǣ
ȋ‹Ȍ Dz”‡–dz‡ƒ•ƒ›’ƒ›‡–ǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†ǡ—†‡”ƒ›Ž‡ƒ•‡ǡ•—„ǦŽ‡ƒ•‡ǡ–‡ƒ…›‘”ƒ›‘–Š‡”
ƒ‰”‡‡‡–‘”ƒ””ƒ‰‡‡–ˆ‘”–Š‡—•‡‘ˆƒ›Žƒ†‘”ƒ›„—‹Ž†‹‰ȋ‹…Ž—†‹‰ˆƒ…–‘”›„—‹Ž†‹‰Ȍǡ–‘‰‡–Š‡”™‹–Š
ˆ—”‹–—”‡ǡϐ‹––‹‰•ƒ†–Š‡Žƒ†ƒ’’—”–‡ƒ––Š‡”‡–‘ǡ™Š‡–Š‡”‘”‘–•—…Š„—‹Ž†‹‰‹•‘™‡†„›–Š‡’ƒ›‡‡Ǥ
ȋ‹‹Ȍ ™Š‡”‡ƒ›‹…‘‡‹•…”‡†‹–‡†–‘ƒ›ƒ……‘—–ǡ™Š‡–Š‡”…ƒŽŽ‡†Dz•—•’‡•‡ƒ……‘—–dz‘”„›‘–Š‡”ƒ‡ǡ‹–Š‡
„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡’‡”•‘Ž‹ƒ„Ž‡–‘’ƒ›•—…Š‹…‘‡ǡ•—…Š…”‡†‹–‹‰•ŠƒŽŽ„‡†‡‡‡†–‘„‡…”‡†‹–‘ˆ
•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡ƒ†–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ

†‹˜‹†—ƒŽȀ ǡ™Š‘•‡–‘–ƒŽ•ƒŽ‡•Ȁ‰”‘••”‡…‡‹’–•‘”–—”‘˜‡”‹–Š‡‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”‡š…‡‡†•
–Š‡‘‡–ƒ”›Ž‹‹–ƒ••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͶͶǡƒ”‡ƒŽ•‘”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡Ǥ
 Lesson 9 Ȉ Procedural Compliance 511

Circumstances, wherein, TDS is not deductible under section 194-I

ƒǤ Š‡ƒ‰‰”‡‰ƒ–‡ƒ‘—–’ƒ‹†Ȁ’ƒ›ƒ„Ž‡†—”‹‰–Š‡ ‹ƒ…‹ƒŽ‡ƒ”†‘‡•ǯ–‡š…‡‡†–Š‡–Š”‡•Š‘Ž†‡š‡’–‹‘
Ž‹‹–‘ˆ•ǤʹǡͶͲǡͲͲͲǤ
„Ǥ Š‡’ƒ›‡”Ȁ–‡ƒ–‹•ƒ‹†‹˜‹†—ƒŽ‘” ™Š‘‹•‘–Ž‹ƒ„Ž‡–‘–ƒšƒ—†‹–ƒ•’‡”•‡…–‹‘ͶͶǤ
…Ǥ …ƒ•‡’ƒ›‡‡Šƒ•ˆ—”‹•Š‡†•‡Žˆ†‡…Žƒ”ƒ–‹‘—†‡” ‘”ͳͷ
Ȁ ‘”ͳͷ†‡…Žƒ”‹‰–Šƒ––Š‡–ƒš‘Š‹•
‡•–‹ƒ–‡†–‘–ƒŽ‹…‘‡ˆ‘”–Š‡”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”™‘—Ž†„‡‹ŽǤ
†Ǥ ‡–‹•’ƒ‹†Ȁ’ƒ›ƒ„Ž‡–‘ƒ
‘˜‡”‡–ƒ‰‡…›Ǥ
‡Ǥ Šƒ”‹‰‘ˆ’”‘…‡‡†•„‡–™‡‡ƒ ‹Ž‹•–”‹„—–‘”ƒ†šŠ‹„‹–‘”‘™‹‰–Š‡…‹‡ƒ–Š‡ƒ–”‡Ǥ

ƒ›‡–ƒ†‡–‘Ƭ ƒ‰‡–ƒ”‡”‡‰ƒ”†‡†ƒ•’ƒ›‡–ƒ†‡ˆ‘”…ƒ””›‹‰‘—–™‘”—†‡”‡…–‹‘ͳͻͶ‹•–‡ƒ†‘ˆ
–”‡ƒ–‹‰‹–ƒ•”‡–Ǧƒ–‹‘ƒŽƒƒ•‘‹…†‹ƒȋȌ–†Ǥ˜ǤCIT (TDS) (2005) 35 OT 16 DelǤ
ƒ›‡–ˆ‘”ƒ†˜‡”–‹•‡‡–ˆ‘”„‘ƒ”†‹‰•‹–‡‹•†‡ƒŽ–—†‡”‡…–‹‘ͳͻͶǤǦ˜Ǥ‘•Šƒ—„Ž…‹–›ȋǤȌ–†Ǥ ȋ͸ͶͶͻȌͺͻ
OT 105 MumǤ
ƒ†‹‰ƒ†ƒ”‹‰ ‡‡”‡…‡‹˜‡†„›‹”’‘”–—–Š‘”‹–‹‡•‹•–”‡ƒ–‡†ƒ•”‡–ƒ•™ƒ•†‡…‹†‡†‹–Š‡…ƒ•‡United Airlines
˜Ǥȋ͸ͶͶͼȌͷͻ͸ƒšƒͻͷͼ‡ŽǤ
No requirement to deduct tax at source under section 194-I on remittance of Passenger Service Fees by an
‹”Ž‹‡–‘ƒ‹”’‘”–’‡”ƒ–‘”ȏ‹”…—Žƒ”‘ǤʹͳȀʹͲͳ͹ǡ†ƒ–‡†ͳʹǤͲ͸ǤʹͲͳ͹Ȑ
–Š‡‹••—‡‘ˆ™Š‡–Š‡”’ƒ›‡–‘ˆ’ƒ••‡‰‡”•‡”˜‹…‡ˆ‡‡•ȋ Ȍ„›ƒƒ‹”Ž‹‡–‘ƒ‹”’‘”–’‡”ƒ–‘”“—ƒŽ‹ϐ‹‡•ƒ•
”‡––‘ƒ––”ƒ…–—†‡”•‡…–‹‘ͳͻͶǦǡ–Š‡‘„ƒ›‹‰Š‘—”–”‡Ž‹‡†‘–Š‡’‡š‘—”–”—Ž‹‰‹ ƒ’ƒ‹”Ž‹‡•ƒ†
‹‰ƒ’‘”‡‹”Ž‹‡•…ƒ•‡ǡ™Š‡”‡‹‹–™ƒ•‘„•‡”˜‡†–Šƒ––Š‡’”‹ƒ”›”‡“—‹”‡‡–ˆ‘”ƒ›’ƒ›‡––‘“—ƒŽ‹ˆ›ƒ•”‡–
‹•–Šƒ––Š‡’ƒ›‡–—•–„‡ˆ‘”–Š‡—•‡‘ˆŽƒ†ƒ†„—‹Ž†‹‰ƒ†‡”‡‹…‹†‡–ƒŽ—•‡‘ˆ–Š‡•ƒ‡™Š‹Ž‡’”‘˜‹†‹‰
‘–Š‡”ˆƒ…‹Ž‹–‹‡•ƒ†•‡”˜‹…‡™‘—Ž†‘–ƒ‡‹–ƒ’ƒ›‡–ˆ‘”—•‡‘ˆŽƒ†ƒ†„—‹Ž†‹‰‘Ž›•‘ƒ•–‘ƒ––”ƒ…–•‡…–‹‘ͳͻͶǦǤ
Payment on transfer of certain Immovable Property other than Agricultural land [Section 194-IA]
›’‡”•‘ǡ„‡‹‰ƒ–”ƒ•ˆ‡”‡‡ǡ”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰ȋ‘–Š‡”–Šƒ–Š‡’‡”•‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͻͶȌ–‘ƒ
”‡•‹†‡––”ƒ•ˆ‡”‘”ƒ›•—„›™ƒ›‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”–”ƒ•ˆ‡”‘ˆƒ›‹‘˜ƒ„Ž‡’”‘’‡”–›ȋ‘–Š‡”–Šƒƒ‰”‹…—Ž–—”ƒŽ
Žƒ†Ȍǡ•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š•—–‘–Š‡ƒ……‘—–‘ˆ–Š‡–”ƒ•ˆ‡”‘”‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ•—…Š•—
‹…ƒ•Š‘”„›‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–ƒƒ‘—–‡“—ƒŽ–‘‘‡
’‡”…‡–ȋͳΨȌ‘ˆ•—…Š•—ƒ•‹…‘‡Ǧ–ƒš–Š‡”‡‘Ǥ
‘†‡†—…–‹‘•ŠƒŽŽ„‡ƒ†‡™Š‡”‡–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆƒ‹‘˜ƒ„Ž‡’”‘’‡”–›‹•Ž‡••–ŠƒͷͲŽƒŠ
”—’‡‡•Ǥ
ȋƒȌ Dzƒ‰”‹…—Ž–—”ƒŽ Žƒ†dz ‡ƒ• ƒ‰”‹…—Ž–—”ƒŽ Žƒ† ‹ †‹ƒǡ ‘– „‡‹‰ ƒ Žƒ† •‹–—ƒ–‡ ‹ ƒ› ƒ”‡ƒ ”‡ˆ‡””‡† –‘ ‹
‹–‡•ȋƒȌƒ†ȋ„Ȍ‘ˆ•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ…Žƒ—•‡ȋͳͶȌ‘ˆ•‡…–‹‘ʹǢ
ȋ„Ȍ Dz‹‘˜ƒ„Ž‡’”‘’‡”–›dz‡ƒ•ƒ›Žƒ†ȋ‘–Š‡”–Šƒƒ‰”‹…—Ž–—”ƒŽŽƒ†Ȍ‘”ƒ›„—‹Ž†‹‰‘”’ƒ”–‘ˆƒ„—‹Ž†‹‰Ǥ

Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ʹͲ͵•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ’‡”•‘”‡“—‹”‡†–‘†‡†—…––ƒš‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‹••‡…–‹‘Ǥ
Š‡–‡”Ǯ…‘•‹†‡”ƒ–‹‘ˆ‘”‹‘˜ƒ„Ž‡’”‘’‡”–›ǯ•ŠƒŽŽ‹…Ž—†‡ƒŽŽ…Šƒ”‰‡•‘ˆ–Š‡ƒ–—”‡‘ˆ…Ž—„‡„‡”•Š‹’ˆ‡‡ǡ…ƒ”
’ƒ”‹‰ˆ‡‡ǡ‡Ž‡…–”‹…‹–›ƒ†™ƒ–‡”ˆƒ…‹Ž‹–›ˆ‡‡•ǡƒ‹–‡ƒ…‡ˆ‡‡ǡƒ†˜ƒ…‡ˆ‡‡‘”ƒ›‘–Š‡”…Šƒ”‰‡•‘ˆ•‹‹Žƒ”ƒ–—”‡ǡ
™Š‹…Šƒ”‡‹…‹†‡–ƒŽ–‘–”ƒ•ˆ‡”‘ˆ–Š‡‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ

Procedure to be followed for Depositing of Tax

When we talk abo—–ǡ‹–‹•ƒ‰‡‡”ƒŽ’”‡•—’–‹‘–Šƒ––Š‡‡†—…–‘”‘ˆ–ƒš‹•Ž‹ƒ„Ž‡–‘‘„–ƒ‹ȋƒš‡†—…–‹‘

ƒ†‘ŽŽ‡…–‹‘……‘—–—„‡”Ȍǡ„—–•‡…–‹‘ͷͿͺǦ‹•ƒ‡š…‡’–‹‘–‘–Š‡•ƒ‡Ǥ‘–Š‡”™‘”†•ǡ—†‡”•‡…–‹‘ͷͿͺǦ
–Š‡‡†—…–‘”ȋ–”ƒ•ˆ‡”‡‡Ȍ†‘‡•ǯ–‡‡†–‘‘„–ƒ‹Ǥ
•’‡”•‡…–‹‘ͷͿͺǦǡ‡˜‡”›’‡”•‘ȋ‡˜‡‹†‹˜‹†—ƒŽ•Ȍƒ‹‰ƒ’ƒ›‡–ˆ‘”…‘•‹†‡”ƒ–‹‘‘ˆƒ‹‘˜ƒ„Ž‡’”‘’‡”–›ǡ
not including agricultural land, will withhold tax @ 1% of the transƒ…–‹‘ƒ‘—–Ǥ
 512 Lesson 9 Ȉ EP-TL

•’‡”‘–‹ϔ‹…ƒ–‹‘‘Ǥ͹ͿȀ͸Ͷͷ͹†ƒ–‡†͹ͷƒ›ǡ͸Ͷͷ͹–Š‡ˆ‘ŽŽ‘™‹‰–Š‹‰•™‡”‡ƒ†‡…Ž‡ƒ”ǣ
ͳǤ ‡’‘•‹–‹‰‘ˆ™‹–ŠŠ‘Ž†‹‰–ƒš
ʹǤ ••—ƒ…‡‘ˆ…‡”–‹ϐ‹…ƒ–‡•ˆ‘”•—…Š–ƒš
͵Ǥ ‹Ž‹‰ƒ”‡–—”‘ˆ™‹–ŠŠ‘Ž†‹‰–ƒš

Š‡ˆ‘ŽŽ‘™‹‰’”‘…‡†—”‡‹•ˆ‘ŽŽ‘™‡†ǣ
Š‡ƒ‘—–†‡†—…–‡†—†‡”•‡…–‹‘ͷͿͺǦ•ŠƒŽŽ„‡†‡’‘•‹–‡†™‹–Š–Š‡‡–”ƒŽ
‘˜‡”‡–™‹–Š‹ͽ†ƒ›•ˆ”‘–Š‡‡†
‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡ƒ‘—–™ƒ•†‡†—…–‡†Ǥ ‘”‡šƒ’Ž‡ǡ‹ˆƒ‘—–‹•†‡†—…–‡†‘ͷͻ–Š —‡ǡ–Š‡ƒ‘—–•ŠƒŽŽ
„‡’ƒ‹†–‘–Š‡…”‡†‹–‘ˆ‡–”ƒŽ
‘˜‡”‡–„›ͽ–Š —Ž›Ǥ
’ƒ›‡–ƒ†‡—Ȁ•ͷͿͺǦ‹•–‘„‡‡…‡••ƒ”‹Ž›ƒ……‘’ƒ‹‡†„›ƒ…ŠƒŽŽƒǦ…—Ǧ•–ƒ–‡‡–‹ ‘”‘Ǥ͸ͼǤ
Š‡ ƒ‘—– •ŠƒŽŽ „‡ †‡’‘•‹–‡† ‡Ž‡…–”‘‹…ƒŽŽ› ™‹–Š‹ –Š‡ –‹‡ •’‡…‹ϔ‹‡† ƒ„‘˜‡ ™‹–Š –Š‡  ‘” –Š‡  ‘” ƒ› ‘–Š‡”
ƒ—–Š‘”‹œ‡† „ƒǤ ‡†—…–‘” ‹• Ž‹ƒ„Ž‡ –‘ ˆ—”‹•Š –Š‡ …‡”–‹ϔ‹…ƒ–‡ ‘ˆ –Š‡ –ƒš †‡†—…–‡† ƒ– •‘—”…‡ ‹ ‘” ‘Ǥ ͷͼ –‘ –Š‡
†‡†—…–‡‡™‹–Š‹ͷͻ†ƒ›•ˆ”‘–Š‡†—‡†ƒ–‡‘ˆˆ—”‹•Š‹‰ ‘”‘Ǥ͸ͼǤ†‡†—…–‘”•ŠƒŽŽ’”‘˜‹†‡ƒ…‡”–‹ϔ‹…ƒ–‡‹
‘”ͷͼ™Š‹…Š‹•–‘„‡‰‡‡”ƒ–‡†‘Ž‹‡ˆ”‘–Š‡™‡„’‘”–ƒŽǤ

TDS on payment of Rent by certain Individuals/HUF [Section 194IB]

•’‹–‡‘ˆƒŽ”‡ƒ†›‡š‹•–‹‰•‹‹Žƒ”’”‘˜‹•‹‘•ˆ‘”–ƒš†‡†—…–‹‘‘’ƒ›‡–‘ˆ”‡–—†‡”•‡…–‹‘ͳͻͶǡ–Š‹••‡…–‹‘
‹•ƒ’’Ž‹…ƒ„Ž‡–‘ƒ†‹˜‹†—ƒŽȀ ǡ™Š‘•‡ƒ……‘—–•ƒ”‡‘–Ž‹ƒ„Ž‡–‘ƒ—†‹–—Ȁ•ͶͶ‹’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”ǡ
”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–”‡–‘ˆŽƒ†‘”„—‹Ž†‹‰‹‡š…‡••‘ˆ•ǤͷͲǡͲͲͲ’‡”‘–Š‘”’ƒ”–‘ˆ‘–ŠǤ
‹•–‘„‡†‡†—…–‡†‘Ž›ƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ”‡–ȋˆ‘”–Š‡Žƒ•–‘–Š‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‘”Žƒ•–‘–Š‘ˆ
–‡ƒ…›‹ˆ–Š‡’”‘’‡”–›‹•˜ƒ…ƒ–‡††—”‹‰–Š‡›‡ƒ”Ȍ–‘–Š‡ƒ……‘—–‘ˆ’ƒ›‡‡‘”–Š‡’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›
…Š‡“—‡Ȁ†”ƒˆ–ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
ƒš‹•–‘„‡†‡†—…–‡†ƒ–”ƒ–‡‘ˆͷΨ‘ˆ–Š‡”‡–’ƒ‹†Ȁ…”‡†‹–‡††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥˆ‘ˆ”‡…‹’‹‡–‹•‘–
ƒ˜ƒ‹Žƒ„Ž‡ǡ–Š‡–ƒš‹•–‘„‡†‡†—…–‡†ƒ–”ƒ–‡‘ˆʹͲΨ„—–‹–…ƒ‘–‡š…‡‡†”‡–’ƒ›ƒ„Ž‡ˆ‘”Žƒ•–‘–Š‘ˆ–Š‡’”‡˜‹‘—•
›‡ƒ”‘”Žƒ•–‘–Š‘ˆ–‡ƒ…›Ǥ
‘–ƒš–‘„‡†‡†—…–‡†‹ˆ”‡–‹••ͷͲǡͲͲͲ‘”Ž‡••’‡”‘–Š‘”™Š‡”‡–Š‡‹†‹˜‹†—ƒŽ‘” ‹•…‘˜‡”‡†—Ȁ•ͳͻͶǤŠ‡
•ƒ‹††‹˜‹†—ƒŽ‘” ȋ‡†—…–‘”Ȁ–‡ƒ–Ȍ†‘‡•ǯ–‡‡†–‘‘„–ƒ‹ˆ‘”•—…Š†‡†—…–‹‘‘ˆ–ƒš—Ȁ•ͳͻͶƒ•–Š‡
’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ʹͲ͵ȋ’‡”–ƒ‹‹‰–‘Ȍ•ŠƒŽŽ‘–ƒ’’Ž›Ǥ
‡…–‹‘ ʹͲ͸ ‘ˆ –Š‡ …– ’”‘˜‹†‡• –Šƒ– ‹ˆ ‡”ƒ‡– ……‘—– —„‡” ȋȌ ‹• ‘– ˆ—”‹•Š‡† „› –Š‡ ’ƒ›‡‡ǡ –Š‡
™‹–ŠŠ‘Ž†‹‰–ƒš”ƒ–‡™‘—Ž†„‡ʹͲΨ‘”–Š‡”ƒ–‡‹ˆ‘”…‡ǡ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ
–‹•‘™’”‘˜‹†‡†–‘ƒ‡†‡…–‹‘ͳͻͶ–‘‹…Ž—†‡–Š‡‡™Ž›‹•‡”–‡†‡…–‹‘ʹͲ͸ǡ’”‘˜‹†‹‰ˆ‘”Š‹‰Š‡””ƒ–‡
ˆ‘”ˆ‘”–Š‡‘Ǧϐ‹Ž‡”•‘ˆ‹…‘‡Ǧ–ƒš”‡–—”Ǥ

TDS at on Joint Development Project [Section 194-IC]

‹•–‘„‡†‡†—…–‡†̷ͳͲΨ—†‡”–Š‹••‡…–‹‘„›ƒ›’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰ƒ›•—„›™ƒ›‘ˆ…‘•‹†‡”ƒ–‹‘
ȋ‘–„‡‹‰‹‹†Ȍ–‘ƒ”‡•‹†‡–ȋ‹Ǥ‡Ǥǡ†‹˜‹†—ƒŽȀ ‘Ž›Ȍ—†‡”ƒ ‘‹–‡˜‡Ž‘’‡–”‘Œ‡…–ƒ•”‡ˆ‡””‡†—†‡”
•‡…–‹‘ͶͷȋͷȌǤ
†‡”•‡…–‹‘ͶͷȋͷȌ–Š‡”‡•Š‘—Ž†„‡•’‡…‹ϐ‹…ƒ‰”‡‡‡–‡–‡”‡†‹–‘„›–Š‡ƒ••‡••‡‡ǡ„‡‹‰ƒ†‹˜‹†—ƒŽȀ 
™‹–Š–Š‡†‡˜‡Ž‘’‡”Ǥ
ƒš‹•†‡†—…–ƒ„Ž‡ƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š•—–‘–Š‡ƒ……‘—–‘ˆƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š
‘”„›‹••—‡‘ˆƒ…Š‡“—‡Ȁ†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǤŠ”‡•Š‘Ž†Ž‹‹–‹•‹ŽǤ
Note Ǧ ‘‹–‡˜‡Ž‘’‡–‰”‡‡‡–‡ƒ•ƒ”‡‰‹•–‡”‡†ƒ‰”‡‡‡–‹™Š‹…Šƒ’‡”•‘‘™‹‰Žƒ†‘”„—‹Ž†‹‰‘”
„‘–Šǡƒ‰”‡‡•–‘ƒŽŽ‘™ƒ‘–Š‡”’‡”•‘–‘†‡˜‡Ž‘’ƒ”‡ƒŽ‡•–ƒ–‡’”‘Œ‡…–‘•—…ŠŽƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡ‹…‘•‹†‡”ƒ–‹‘
‘ˆ•Šƒ”‡ǡ„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Š‹•—…Š’”‘Œ‡…–ǡ™Š‡–Š‡”™‹–Š‘”™‹–Š‘—–’ƒ›‡–‘ˆ’ƒ”–‘ˆ…‘•‹†‡”ƒ–‹‘
‹…ƒ•ŠǤ
 Lesson 9 Ȉ Procedural Compliance 513

Professional and Technical Fees [Section 194J]

›’‡”•‘‘–Š‡”–Šƒƒ‹†‹˜‹†—ƒŽ‘”ƒ ™Š‘‹•”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ˆ‘ŽŽ‘™‹‰‹…‘‡ǣ
ͳǤ ‡‡•ˆ‘”’”‘ˆ‡••‹‘ƒŽ•‡”˜‹…‡•ǡȋǡǡǡƒ™›‡”•ǡǡƒŽŽϐ‹Ž‹†—•–”‹‡•Ȍ
ʹǤ ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•ǡȋ‰‹‡‡”•ǡ”…Š‹–‡…–•Ȍ
͵Ǥ ‘›ƒŽ–›
ͶǤ ‘Ǧ…‘’‡–‹‰ˆ‡‡••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ʹͺȋ˜Ȍ
ͷǤ ‡—‡”ƒ–‹‘‘”ˆ‡‡•‘”…‘‹••‹‘’ƒ‹†–‘ƒ†‹”‡…–‘”‘ˆƒ…‘’ƒ›ȋ‘–„‡‹‰•ƒŽƒ”‹‡•…Šƒ”‰‡ƒ„Ž‡—Ȁ•
ͳͷȌǤ‡Ǥ‰Ǥ‘ƒ”†•‹––‹‰ˆ‡‡•Ǥ
•ŠƒŽŽ†‡†—…––ƒšƒ–•‘—”…‡̷ͳͲΨǤ‘™‡˜‡”ǡ‘•ŠƒŽŽ„‡†‡†—…–‡†‹ˆǣ
ƒǤ –Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ•—…Šˆ‡‡•‰‹˜‡–‘ƒ’‡”•‘‹•Ž‹‡Ž›–‘„‡—’–‘ƒƒ‘—–‘ˆ•Ǥ͵ͲǡͲͲͲ‹–Š‡’”‡˜‹‘—•
›‡ƒ”Ǥ
„Ǥ ™Š‡”‡’”‘ˆ‡••‹‘ƒŽ•‡”˜‹…‡•”‡†‡”‡†ƒ”‡ˆ‘”–Š‡’‡”•‘ƒŽ’—”’‘•‡‘ˆ–Š‡‹†‹˜‹†—ƒŽȀ ”‡…‹’‹‡–•Ǥ
 Š‡–Š‡’ƒ›‡‡†‘‡•‘–ˆ—”‹•ŠŠ‹•–‘†‡†—…–‘”ǡ–ƒš™‹ŽŽ„‡†‡†—…–‡†̷ʹͲΨǤ
•ŠƒŽŽ„‡†‡†—…–‡†ƒ–”ƒ–‡‘ˆʹΨ‹…ƒ•‡‘ˆǣ
ƒǤ ’ƒ›‡–Ȁ…”‡†‹––‘ƒ’‡”•‘‡‰ƒ‰‡†‘Ž›‹–Š‡„—•‹‡••‘ˆ‘’‡”ƒ–‹‘‘ˆ…ƒŽŽ…‡–”‡Ǥ
„Ǥ ˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•ȋ‘–„‡‹‰’”‘ˆ‡••‹‘ƒŽ•‡”˜‹…‡•Ȍ‘””‘›ƒŽ–›™Š‡”‡•—…Š”‘›ƒŽ–›‹•‹–Š‡ƒ–—”‡
‘ˆ…‘•‹†‡”ƒ–‹‘ˆ‘”•ƒŽ‡ǡ†‹•–”‹„—–‹‘‘”‡šŠ‹„‹–‹‘‘ˆ…‹‡ƒ–‘‰”ƒ’Š‹…ϐ‹Ž•ƒ†–‡’‡”…‡–‘ˆ•—…Š•—
‹‘–Š‡”…ƒ•‡•Ǥ[As amended by Finance Act, 2020]

Income in respect of Units [Section 194K]

›’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ƒ›‹…‘‡‹”‡•’‡…–‘ˆȄ
ȋƒȌ —‹–•‘ˆƒ—–—ƒŽ —†•’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͳͲȋʹ͵ȌǢ‘”
ȋ„Ȍ —‹–•ˆ”‘–Š‡†‹‹•–”ƒ–‘”‘ˆ–Š‡•’‡…‹ϐ‹‡†—†‡”–ƒ‹‰Ǣ‘”
ȋ…Ȍ —‹–•ˆ”‘–Š‡•’‡…‹ϐ‹‡†…‘’ƒ›ǡ

•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡ȋ‘”…”‡†‹–‡†‹–‘ƒ›•—•’‡•‡ƒ……‘—–Ȍ‘”ƒ–
–Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ„›ƒ›‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘ƒ–ͳͲΨǣ
”‘˜‹†‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›Ȅ
ȋ‹Ȍ ™Š‡”‡–Š‡ƒ‘—–‘ˆ•—…Š‹…‘‡‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‘ˆ•—…Š‹…‘‡
…”‡†‹–‡†‘”’ƒ‹†‘”Ž‹‡Ž›–‘„‡…”‡†‹–‡†‘”’ƒ‹††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”„›–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”
ƒ‹‰–Š‡’ƒ›‡––‘–Š‡ƒ……‘—–‘ˆǡ‘”–‘ǡ–Š‡’ƒ›‡‡†‘‡•‘–‡š…‡‡†ͷǡͲͲͲ”—’‡‡•Ǣ‘”
ȋ‹‹Ȍ ‹ˆ–Š‡‹…‘‡‹•‘ˆ–Š‡ƒ–—”‡‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•Ǥ

‘–‡ǣŠ‡–‡”•Dz†‹‹•–”ƒ–‘”dzǡDz•’‡…‹ϐ‹‡†…‘’ƒ›dzƒ†Dz•’‡…‹ϐ‹‡†—†‡”–ƒ‹‰dzƒ”‡ƒ•”‡ˆ‡””‡†–‘‹•‡…–‹‘ʹ‘ˆ
–Š‡‹–”—•–‘ˆ†‹ƒȋ”ƒ•ˆ‡”‘ˆ†‡”–ƒ‹‰ƒ†‡’‡ƒŽȌ…–ǡʹͲͲʹ
Payment of Compensation on acquisition of Capital Asset [Section 194LA]
–ƒ’’Ž‹‡•–‘ƒ›’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ”‡•‹†‡–ƒ›•—„‡‹‰‹–Š‡ƒ–—”‡‘ˆ…‘’‡•ƒ–‹‘‘”
‡Šƒ…‡†…‘’‡•ƒ–‹‘‘”…‘•‹†‡”ƒ–‹‘‘”‡Šƒ…‡†…‘•‹†‡”ƒ–‹‘‘ƒ……‘—–‘ˆ…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘‘ˆ
ƒ›ƒ••‡–—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡Ǥ—…Š’‡”•‘ǡƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ•—…Š•—‹…ƒ•Š‘”
„›‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ•ŠƒŽŽ†‡†—…–ƒƒ‘—–‡“—ƒŽ–‘ͳͲΨ
ƒ† ‘ •—”…Šƒ”‰‡ǡ …‡•• •ŠƒŽŽ „‡ ƒ††‡†Ǥ Š‡ –Š‡ ’ƒ›‡‡ †‘‡• ‘– ˆ—”‹•Š Š‹•  –‘ †‡†—…–‘”ǡ –ƒš ™‹ŽŽ „‡
†‡†—…–‡† ̷ ʹͲΨ ‘ˆ •—…Š •— ƒ• ‹…‘‡ –ƒš ‘ ‹…‘‡ …‘’”‹•‡† –Š‡”‡‹Ǥ ‘™‡˜‡”ǡ ‘ †‡†—…–‹‘ •ŠƒŽŽ „‡
ƒ†‡™Š‡”‡–Š‡ƒ‘—–‘ˆ•—…Š’ƒ›‡–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ•—…Š’ƒ›‡–•†—”‹‰–Š‡ˆ‹ƒ…‹ƒŽ›‡ƒ”†‘‡•‘–
‡š…‡‡†•ǤʹǤͷƒŠǤ
 514 Lesson 9 Ȉ EP-TL

‘•ŠƒŽŽ„‡†‡†—…–‡†—†‡”–Š‹••‡…–‹‘‹”‡•’‡…–‘ˆ’ƒ›‡–ƒ†‡‹”‡•’‡…–‘ˆƒ›ƒ™ƒ”†Ȁƒ‰”‡‡‡–ƒ†‡
™Š‹…ŠŠƒ•„‡‡‡š‡’–‡†ˆ”‘Ž‡˜›‘ˆ‹…‘‡–ƒš—†‡”‡…–‹‘ͻ͸ȋ‡š…‡’––Š‘•‡ƒ†‡—†‡”•‡…–‹‘‘ˆ 
ȋ‹‰Š––‘ ƒ‹”‘’‡•ƒ–‹‘ƒ†”ƒ•’ƒ”‡…›‹ƒ†…“—‹•‹–‹‘ǡ‡Šƒ„‹Ž‹–ƒ–‹‘ƒ†‡•‡––Ž‡‡–Ȍ…–Ǥ
Income by way of interest from infrastructure debt fund [Section 194LB]
Š‡”‡ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‹•’ƒ›ƒ„Ž‡–‘ƒ‘Ǧ”‡•‹†‡–ǡ‘–„‡‹‰ƒ…‘’ƒ›ǡ‘”–‘ƒˆ‘”‡‹‰…‘’ƒ›ǡ„›
ƒ‹ˆ”ƒ•–”—…–—”‡†‡„–ˆ—†”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋͶ͹Ȍ‘ˆ•‡…–‹‘ͳͲǡ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–
•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›
‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘̷ͷΨΪ—”…Šƒ”‰‡ǡ
‹ˆƒ’’Ž‹…ƒ„Ž‡ΪǤ
Income from Units of a Business Trust [Section 194LBA]
Š‡”‡ ƒ› †‹•–”‹„—–‡† ‹…‘‡ ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͳͳͷǡ „‡‹‰ ‘ˆ –Š‡ ƒ–—”‡ ”‡ˆ‡””‡† –‘ ‹ …Žƒ—•‡ ȋʹ͵  ‘”
ʹ͵ Ȍ‘ˆ•‡…–‹‘ͳͲǡ‹•’ƒ›ƒ„Ž‡„›ƒ„—•‹‡••–”—•––‘‹–•—‹–Š‘Ž†‡”„‡‹‰ƒ”‡•‹†‡–ǡ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”
ƒ‹‰–Š‡’ƒ›‡–•ŠƒŽŽƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š’ƒ›‡––‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡–
–Š‡”‡‘ˆ‹…ƒ•Š‘”„›–Š‡‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš
–Š‡”‡‘ƒ––Š‡”ƒ–‡‘ˆͳͲΨǤ
…ƒ•‡–Š‡—‹–Š‘Ž†‡”‹•ƒ‘Ǧ”‡•‹†‡–ǡ‘–„‡‹‰ƒ…‘’ƒ›‘”ƒˆ‘”‡‹‰…‘’ƒ›ǡ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”
ƒ‹‰–Š‡’ƒ›‡–‘ˆ•—…Š†‹•–”‹„—–‡†‹–‡”‡•–‹…‘‡ǡ•ŠƒŽŽƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š’ƒ›‡––‘–Š‡ƒ……‘—–
‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›–Š‡‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ
™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘ƒ––Š‡”ƒ–‡‘ˆͷΨΪ—”…Šƒ”‰‡ǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ΪǤ‘™‡˜‡”™Š‡”‡
•—…Š†‹˜‹†‡†‹…‘‡”‡…‡‹˜‡†‘””‡…‡‹˜ƒ„Ž‡ˆ”‘’‡…‹ƒŽ—”’‘•‡‡Š‹…Ž‡ȋȌǡ–Š‡”ƒ–‡‘ˆ•ŠƒŽŽ„‡ͳͲΨΪ
—”…Šƒ”‰‡ǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ΪǤ
Income by way of interest from Indian company engaged in certain Business [Section 194LC]
Š‡”‡ƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–‹•’ƒ›ƒ„Ž‡–‘ƒ‘Ǧ”‡•‹†‡–ǡ‘–„‡‹‰ƒ…‘’ƒ›‘”–‘ƒˆ‘”‡‹‰…‘’ƒ›
„›ƒ•’‡…‹ˆ‹‡†…‘’ƒ›‘”ƒ„—•‹‡••–”—•–ǡ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–ǡ•ŠƒŽŽƒ––Š‡–‹‡
‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›‹••—‡‘ˆƒ
…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…––Š‡‹…‘‡Ǧ–ƒš–Š‡”‡‘̷ͷΨΪ—”…Šƒ”‰‡ǡ
‹ˆƒ’’Ž‹…ƒ„Ž‡ΪǤ
Š‡‹–‡”‡•–•ŠƒŽŽ„‡–Š‡‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–’ƒ›ƒ„Ž‡„›–Š‡•’‡…‹ϐ‹‡†…‘’ƒ›ǡ
ȋ‹Ȍ ‹”‡•’‡…–‘ˆ‘‹‡•„‘””‘™‡†„›‹–‹ˆ‘”‡‹‰…—””‡…›ˆ”‘ƒ•‘—”…‡‘—–•‹†‡†‹ƒǡ
ȋƒȌ —†‡”ƒŽ‘ƒƒ‰”‡‡‡–ƒ–ƒ›–‹‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ —Ž›ǡʹͲͳʹ„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ
—Ž›ǡʹͲʹ͵Ǣ‘”
ȋ„Ȍ „›™ƒ›‘ˆ‹••—‡‘ˆŽ‘‰Ǧ–‡”‹ˆ”ƒ•–”—…–—”‡„‘†•ƒ–ƒ›–‹‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ —Ž›ǡʹͲͳʹ
„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡʹͲͳͶǢ‘”
ȋ…Ȍ „›™ƒ›‘ˆ‹••—‡‘ˆƒ›Ž‘‰Ǧ–‡”„‘†‹…Ž—†‹‰Ž‘‰Ǧ–‡”‹ˆ”ƒ•–”—…–—”‡„‘†ƒ–ƒ›–‹‡‘‘”
ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡʹͲͳͶ„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ —Ž›ǡʹͲʹ͵ǡƒ•ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ

‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǤ
ȋ‹‹Ȍ ‹”‡•’‡…–‘ˆ‘‹‡•„‘””‘™‡†„›‹–ˆ”‘ƒ•‘—”…‡‘—–•‹†‡†‹ƒ„›™ƒ›‘ˆ‹••—‡‘ˆ”—’‡‡†‡‘‹ƒ–‡†
„‘†„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ —Ž›ǡʹͲʹ͵Ǥ
ȋ‹‹‹Ȍ ‹”‡•’‡…–‘ˆ‘‹‡•„‘””‘™‡†„›‹–ˆ”‘ƒ•‘—”…‡‘—–•‹†‡†‹ƒ„›™ƒ›‘ˆ‹••—‡‘ˆƒ›Ž‘‰Ǧ–‡”„‘†‘”
”—’‡‡†‡‘‹ƒ–‡†„‘†‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲ„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ —Ž›ǡʹͲʹ͵ǡ™Š‹…Š
‹•Ž‹•–‡†‘Ž›‘ƒ”‡…‘‰‹•‡†•–‘…‡š…Šƒ‰‡Ž‘…ƒ–‡†‹ƒ›–‡”ƒ–‹‘ƒŽ ‹ƒ…‹ƒŽ‡”˜‹…‡•‡–”‡Ǥ
ȋ‹˜Ȍ –‘–Š‡‡š–‡––‘™Š‹…Š•—…Š‹–‡”‡•–†‘‡•‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ‹–‡”‡•–…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡ƒ’’”‘˜‡†„›
–Š‡‡–”ƒŽ
‘˜‡”‡–‹–Š‹•„‡ŠƒŽˆǢŠƒ˜‹‰”‡‰ƒ”†–‘–Š‡–‡”•‘ˆ–Š‡Ž‘ƒ‘”–Š‡„‘†ƒ†‹–•”‡’ƒ›‡–Ǥ
ȋƒȌ Dzˆ‘”‡‹‰…—””‡…›dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋȌ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡ ‘”‡‹‰
 Lesson 9 Ȉ Procedural Compliance 515

š…Šƒ‰‡ƒƒ‰‡‡–…–ǡͳͻͻͻȋͶʹ‘ˆͳͻͻͻȌǢ
ȋ„Ȍ Dz•’‡…‹ϐ‹‡†…‘’ƒ›dz‡ƒ•ƒ†‹ƒ…‘’ƒ›Ǥ

Income by way of interest on certain bonds and Government securities [Section 194LD]
›’‡”•‘™Š‘‹•”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ’‡”•‘„‡‹‰ƒ ‘”‡‹‰•–‹–—–‹‘ƒŽ˜‡•–‘”‘”ƒ—ƒŽ‹ϐ‹‡† ‘”‡‹‰
˜‡•–‘”ǡƒ›‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ–
–Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ•—…Š‹…‘‡‹…ƒ•Š‘”„›–Š‡‹••—‡‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•
‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš̷ͷΨΪ—”…Šƒ”‰‡ǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ΪǤ
Š‡‹…‘‡„›™ƒ›‘ˆ‹–‡”‡•–•ŠƒŽŽ„‡–Š‡‹–‡”‡•–’ƒ›ƒ„Ž‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ —‡ǡʹͲͳ͵„—–„‡ˆ‘”‡–Š‡͵Ͳ–Š
†ƒ›‘ˆ —‡ǡʹͲʹͲ‹”‡•’‡…–‘ˆ‹˜‡•–‡–ƒ†‡„›–Š‡’ƒ›‡‡‹Ȃ
ȋ‹Ȍ ƒ”—’‡‡†‡‘‹ƒ–‡†„‘†‘ˆƒ†‹ƒ…‘’ƒ›Ǣ‘”
ȋ‹‹Ȍ ƒ
‘˜‡”‡–•‡…—”‹–›Ǥ

‘™‡˜‡”ǡ–Š‡”ƒ–‡‘ˆ‹–‡”‡•–‹”‡•’‡…–‘ˆ„‘†”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹Ȍ•ŠƒŽŽ‘–‡š…‡‡†–Š‡”ƒ–‡ƒ•ƒ›„‡‘–‹ϐ‹‡†
„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
ȋƒȌ Dz ‘”‡‹‰ •–‹–—–‹‘ƒŽ ˜‡•–‘”dz •ŠƒŽŽ Šƒ˜‡ –Š‡ ‡ƒ‹‰ ƒ••‹‰‡† –‘ ‹– ‹ …Žƒ—•‡ ȋƒȌ ‘ˆ –Š‡ š’Žƒƒ–‹‘ –‘
section 115AD;
ȋ„Ȍ Dz
‘˜‡”‡– •‡…—”‹–›dz •ŠƒŽŽ Šƒ˜‡ –Š‡ ‡ƒ‹‰ ƒ••‹‰‡† –‘ ‹– ‹ …Žƒ—•‡ ȋ„Ȍ ‘ˆ •‡…–‹‘ ͸ ‘ˆ –Š‡ ‡…—”‹–‹‡•
‘–”ƒ…–•ȋ‡‰—Žƒ–‹‘Ȍ…–ǡͷͿͻͼȋͺ͸‘ˆͷͿͻͼȌǢ
ȋ…Ȍ Dz—ƒŽ‹ϔ‹‡† ‘”‡‹‰˜‡•–‘”dz•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹–Š‡‹”…—Žƒ”ǡ‘Ǥ‹”ȀȀ ȀͷͺȀ͸Ͷͷͷǡ
†ƒ–‡†–Š‡Ϳ–Š—‰—•–ǡ͸Ͷͷͷǡƒ•ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡ǡ‹••—‡†„›–Š‡‡…—”‹–‹‡•ƒ†š…Šƒ‰‡‘ƒ”†‘ˆ
India, under section 11 of the Secu”‹–‹‡•ƒ†š…Šƒ‰‡‘ƒ”†‘ˆ†‹ƒ…–ǡͷͿͿ͸ȋͷͻ‘ˆͷͿͿ͸ȌǤ

Payment by Individual/HUF to Contractors and Professionals [Section 194M]

›•—‘”–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ•—•ȋ‡š…‡‡†•ͷͲŽƒ…•‹ƒ›‡ƒ”Ȍ’ƒ‹†‘”…”‡†‹–‡†‹ƒ›‡ƒ”„›†‹˜‹†—ƒŽȀ ȋ™Š‘
ƒ”‡‘–”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡—†‡”•‡…–‹‘ͳͻͶǡͳͻͶƒ†ͳͻͶ ‘ˆ–Š‡…–Ȍ–‘…‘–”ƒ…–‘”•‘”’”‘ˆ‡••‹‘ƒŽ•
‘ƒ……‘—–‘ˆ…‘–”ƒ…–—ƒŽ™‘”‘”’”‘ˆ‡••‹‘ƒŽˆ‡‡•ƒ”‡”‡“—‹”‡†–‘†‡†—…–ƒ––Š‡”ƒ–‡‘ˆͷΨǤ‘†‡’‘•‹––Š‡–ƒš
†‡†—…–‡†ǡƒ••‡••‡‡•ŠƒŽŽ‘–„‡”‡“—‹”‡†–‘‘„–ƒ‹ƒš†‡†—…–‹‘……‘—–—„‡”ȋȌǤ
TDS on Cash Withdrawal to discourage Cash Transactions [Section 194N]
Ǥ–‘„‡†‡†—…–‡†ˆ”‘™‹–Š†”ƒ™ƒŽ‡š…‡‡†‹‰•Ǥͳ”‘”‡
˜‡”›’‡”•‘ǡ„‡‹‰ƒ„ƒ‹‰…‘’ƒ›‹…Ž—†‹‰ƒ›…‘Ǧ‘’‡”ƒ–‹˜‡„ƒ‘”ƒ’‘•–‘ˆϐ‹…‡™Š‘‹•”‡•’‘•‹„Ž‡ˆ‘”
’ƒ›‹‰ ƒ› •—ǡ „‡‹‰ –Š‡ ƒ‰‰”‡‰ƒ–‡ ‘ˆ ƒ‘—–• ‹ …ƒ•Š ‡š…‡‡†‹‰ •Ǥ ͳ …”‘”‡ †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ”ǡ –‘ ƒ›
’‡”•‘ȋ”‡…‹’‹‡–Ȍˆ”‘‘‡‘”‘”‡ƒ……‘—–•ƒ‹–ƒ‹‡†„›–Š‡”‡…‹’‹‡–™‹–Š‹–•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ
•—…Š•—ǡ†‡†—…–ʹΨ‘ˆ•—…Š•—ǡƒ•‹…‘‡Ǧ–ƒšǤ
Ǥ–‘„‡†‡†—…–‡†ˆ”‘™‹–Š†”ƒ™ƒŽ‡š…‡‡†‹‰•ǤʹͲƒ…•ǡ‹ˆ–Š‡”‡…‹’‹‡–Šƒ•‘–ˆ—”‹•Š‡†
–Š‡”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡Žƒ•–͵••‡••‡–›‡ƒ”•Ǥ
…ƒ•‡‘ˆƒ”‡…‹’‹‡–™Š‘Šƒ•‘–ϐ‹Ž‡†–Š‡”‡–—”•‘ˆ‹…‘‡ˆ‘”ƒŽŽ‘ˆ–Š‡͵ƒ••‡••‡–›‡ƒ”•”‡Ž‡˜ƒ––‘–Š‡–Š”‡‡
’”‡˜‹‘—•›‡ƒ”•ǡˆ‘”™Š‹…Š–Š‡–‹‡Ž‹‹––‘ϐ‹Ž‡”‡–—”‘ˆ‹…‘‡—†‡”•‡…–‹‘ͳ͵ͻȋͳȌŠƒ•‡š’‹”‡†ǡ‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡’ƒ›‡–‘ˆ–Š‡•—‹•ƒ†‡–‘Š‹ǡ–Š‡’”‘˜‹•‹‘‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ
ƒ’’Ž›™‹–Š–Š‡‘†‹ϐ‹…ƒ–‹‘–Šƒ–Ȅ

Ǥ‘Ǥ Aggregate Cash withdrawal Limit during the Previous Year Rate of TDS

ͳǤ š…‡‡†••ǤʹͲƒ…•„—–†‘‡•‘–‡š…‡‡†•Ǥͳ”‘”‡ ʹΨ

ʹǤ š…‡‡†••Ǥͳ”‘”‡ ͷΨ
 516 Lesson 9 Ȉ EP-TL

”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– –Š‡ ‡–”ƒŽ

‘˜‡”‡– ƒ› •’‡…‹ˆ› ‹ …‘•—Ž–ƒ–‹‘ ™‹–Š –Š‡ ‡•‡”˜‡ ƒ ‘ˆ †‹ƒǡ „›
‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ–Š‡”‡…‹’‹‡–‹™Š‘•‡…ƒ•‡”‡†—…‡†”ƒ–‡‘ˆʹΨ•ŠƒŽŽ‘–ƒ’’Ž›ǡ‹ˆ•—…Š”‡…‹’‹‡–
•ƒ–‹•ϐ‹‡•–Š‡…‘†‹–‹‘••’‡…‹ϐ‹‡†‹•—…Š‘–‹ϐ‹…ƒ–‹‘Ǥ
”‘˜‹†‡† –Šƒ– ‘–Š‹‰ …‘–ƒ‹‡† ‹ –Š‹• •—„Ǧ•‡…–‹‘ •ŠƒŽŽ ƒ’’Ž› –‘ ƒ› ’ƒ›‡– ƒ†‡ –‘
‘˜‡”‡–ǡ „ƒ‹‰
…‘’ƒ›ǡ…‘‘’‡”ƒ–‹˜‡•‘…‹‡–›‡‰ƒ‰‡†‹…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ„ƒ‹‰ǡ’‘•–‘ˆϐ‹…‡ǡ„ƒ‹‰…‘””‡•’‘†‡–•
ƒ†™Š‹–‡Žƒ„‡Ž‘’‡”ƒ–‘”•Ǥ
Payments of certain sums by e- commerce operator to e- commerce participant [Section194-O]
Š‡”‡ƒ›•ƒŽ‡‘ˆ‰‘‘†•‘”’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•„›ƒ‡•‹†‡–‡Ǧ…‘‡”…‡’ƒ”–‹…‹’ƒ–ȋšƒ’Ž‡ǦŽ‘—†–ƒ‹ŽȌ‹•
ˆƒ…‹Ž‹–ƒ–‡† „› ƒ ‡Ǧ…‘‡”…‡ ‘’‡”ƒ–‘” ȋšƒ’Ž‡Ǧ ƒœ‘Ȁ Ž‹’ƒ”–Ȍ ȏ™Š‡”‡‹ ’ƒ›‡– ƒ†‡ „› ƒ ’—”…Šƒ•‡” ‘ˆ
‰‘‘†•‘””‡…‹’‹‡–‘ˆ•‡”˜‹…‡•†‹”‡…–Ž›–‘ƒ‡Ǧ…‘‡”…‡’ƒ”–‹…‹’ƒ–‹•ƒŽ•‘‹…Ž—†‡†Ȑ–Š”‘—‰Š‹–•†‹‰‹–ƒŽ‘”‡Ž‡…–”‘‹…
ˆƒ…‹Ž‹–›‘”’Žƒ–ˆ‘”ȋ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†Ȍǡ•—…Š‡Ǧ‘‡”…‡‘’‡”ƒ–‘”•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆƒ‘—–‘ˆ
•ƒŽ‡‘”•‡”˜‹…‡•–‘–Š‡ƒ……‘—–‘ˆƒ‡Ǧ…‘‡”…‡’ƒ”–‹…‹’ƒ–‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ–‘•—…Š‡Ǧ…‘‡”…‡
’ƒ”–‹…‹’ƒ–„›ƒ›‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–ƒ––Š‡”ƒ–‡‘ˆͳΨ‘ˆ–Š‡‰”‘••ƒ‘—–‘ˆ•—…Š•ƒŽ‡•‘”
•‡”˜‹…‡•‘”„‘–ŠǤ‘‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”•—†‡”•‡…–‹‘ͳͻͶǦ‹•ƒ’’Ž‹…ƒ„Ž‡ˆ”‘ͳ•–…–‘„‡”ǡʹͲʹͲǤ
Ǧ…‘‡”…‡’ƒ”–‹…‹’ƒ–„‡‹‰ƒ”‡•‹†‡–‹†‹˜‹†—ƒŽ‘” ǣ‘†‡†—…–‹‘ˆ‘”‡Ǧ…‘‡”…‡’ƒ”–‹…‹’ƒ–ǡ„‡‹‰
ƒ ‹†‹˜‹†—ƒŽ ‘”   ™Š‘ Šƒ• ˆ—”‹•Š‡† Š‹•  ‘” ƒ†Šƒƒ” –‘ –Š‡ ‡Ǧ…‘‡”…‡ ‘’‡”ƒ–‘” ƒ† ™Š‡”‡ –Š‡ ‰”‘••
ƒ‘—– ‘ˆ •—…Š •ƒŽ‡ ‘” •‡”˜‹…‡• †—”‹‰ –Š‡ ’”‡˜‹‘—• ›‡ƒ” †‘‡• ‘– ‡š…‡‡† ͷ ƒŠ ”—’‡‡•Ǥ ˆ –Š‡ ‡Ǧ‘‡”…‡
’ƒ”–‹…‹’ƒ– †‘‡• ‘– ˆ—”‹•Š Š‹•  ‘” ƒ†Šƒƒ”ǡ  —•– „‡ †‡†—…–‡† ƒ– –Š‡ ”ƒ–‡ ‘ˆ ͷΨǡ ƒ• ’‡” ’”‘˜‹•‹‘• ‘ˆ
‡…–‹‘ʹͲ͸Ǥ
›†‡†—…–‡†‘”™Š‹…Š‹•‘–Ž‹ƒ„Ž‡–‘†‡†—…–‹‘—†‡”–Š‹••‡…–‹‘ǡ•ŠƒŽŽ‘–„‡Ž‹ƒ„Ž‡–‘–ƒš†‡†—…–‹‘ƒ–
•‘—”…‡—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•Šƒ’–‡”Ǥ
•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ›ƒ‘—–”‡…‡‹˜‡†„›ƒ‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”ˆ‘”Š‘•–‹‰ƒ†˜‡”–‹•‡‡–•‘”’”‘˜‹†‹‰
ƒ›‘–Š‡”•‡”˜‹…‡•™Š‹…Šƒ”‡‘–‹…‘‡…–‹‘™‹–Š–Š‡•ƒŽ‡‘”•‡”˜‹…‡•Ǥ
‘Ǧ”‡•‹†‡–‡Ǧ‘‡”…‡’ƒ”–‹…‹’ƒ–•ƒ”‡‡š‡’–‡†ˆ”‘–Š‡•…‘’‡‘ˆ–Š‹••‡…–‹‘Ǥ
‡†—…–‹‘‘ˆ–ƒš‹…ƒ•‡‘ˆ’‡…‹ϐ‹‡†‡‹‘”‹–‹œ‡ȏ‡…–‹‘ͳͻͶȐ
‡…–‹‘ͳͻͶ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳŠƒ•„‡‡‹•‡”–‡†˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͳ™Š‹…Š’”‘˜‹†‡•ˆ‘””‡Žƒšƒ–‹‘
ˆ”‘ˆ—”‹•Š‹‰Ȁϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡–‘ƒ•‡‹‘”…‹–‹œ‡‹–Š‡›‡ƒ”‹™Š‹…Š–ƒšŠƒ•„‡‡†‡†—…–‡†„›–Š‡
•’‡…‹ϐ‹‡†„ƒƒˆ–‡”‰‹˜‹‰‡ˆˆ‡…––‘–Š‡†‡†—…–‹‘ƒŽŽ‘™ƒ„Ž‡—†‡”Šƒ’–‡”‘ˆ–Š‡…–ƒ†”‡„ƒ–‡—†‡”‡…–‹‘
ͺ͹‘ˆ–Š‡…–Ǥ‡‹‘”…‹–‹œ‡•‡‡†–‘•ƒ–‹•ˆ›–Š‡„‡Ž‘™”‡“—‹”‡‡–•ˆ‘”ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆ–Š‡•ƒ‹†‡…–‹‘ǣ
Ȉ ‡•‹†‡–‹†‹ƒ
Ȉ ‰‡†͹ͷ›‡ƒ”•‘”‘”‡†—”‹‰ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”
Ȉ ‘‹…‘‡‘–Š‡”–Šƒ’‡•‹‘ƒ†‹–‡”‡•–‹…‘‡ˆ”‘–Š‡•ƒ‡•’‡…‹ϐ‹‡†„ƒ‹™Š‹…ŠŠ‡‹•”‡…‡‹˜‹‰
Š‹•’‡•‹‘‹…‘‡
Ȉ —”‹•Š‡• ƒ †‡…Žƒ”ƒ–‹‘ –‘ –Š‡ •’‡…‹ϐ‹‡† „ƒ …‘–ƒ‹‹‰ ’ƒ”–‹…—Žƒ”•ǡ ‹ •—…Š ˆ‘” ƒ† ˜‡”‹ϐ‹‡† ‹ •—…Š
ƒ‡”ǡƒ•ƒ›„‡’”‡•…”‹„‡†

TDS on payment of certain sum for Purchase of Goods [Section 194Q]

‡…–‹‘ͳͻͶ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳŠƒ•„‡‡‹•‡”–‡†˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͳ–‘’”‘˜‹†‡ˆ‘”™‹–ŠŠ‘Ž†‹‰–ƒš
ƒ––Š‡”ƒ–‡‘ˆͲǤͳΨ‘’ƒ›‡–ƒ†‡„›ƒ„—›‡”–‘ƒ’‡”•‘”‡•‹†‡–‹†‹ƒˆ‘”’—”…Šƒ•‡‘ˆ‰‘‘†•‡š…‡‡†‹‰ͷͲŽƒŠ
‹ƒ’”‡˜‹‘—•›‡ƒ”ǤŠ‡„—›‡”‹•”‡“—‹”‡†–‘™‹–ŠŠ‘Ž†–ƒšƒ––Š‡”ƒ–‡‘ˆͲǤͳΨ‘–Š‡•—‡š…‡‡†‹‰ͷͲŽƒŠǤ
Š‡š’Žƒƒ–‹‘–‘–Š‡‡…–‹‘ͳͻͶȋͳȌ‘ˆ–Š‡…–•‡‡•–‘†‡ϐ‹‡–Š‡–‡”Ǯ„—›‡”ǯ–‘‡ƒƒ’‡”•‘™Š‘•‡–‘–ƒŽ
•ƒŽ‡•ǡ‰”‘••”‡…‡‹’–•‘”–—”‘˜‡”ˆ”‘–Š‡„—•‹‡••…ƒ””‹‡†‘„›Š‹‡š…‡‡†•ͳͲ…”‘”‡ǡ†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡’—”…Šƒ•‡‘ˆ‰‘‘†•‹•…ƒ””‹‡†‘—–Ǥ
Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›–‘ƒ–”ƒ•ƒ…–‹‘‘™Š‹…Šǣ–ƒš‹•†‡†—…–‹„Ž‡—†‡”ƒ›‘ˆ–Š‡’”‘˜‹•‹‘•
‘ˆ –Š‡ …–Ǣ ƒ† –ƒš ‹• …‘ŽŽ‡…–‹„Ž‡ —†‡” –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ʹͲ͸ ȏ‘–Š‡” –Šƒ ƒ –”ƒ•ƒ…–‹‘ …‘˜‡”‡† —†‡”
‡…–‹‘ʹͲ͸ȋͳȌ‘ˆ–Š‡…–Ȑ
 Lesson 9 Ȉ Procedural Compliance 517

–‹•ƒŽ•‘’”‘˜‹†‡†–‘…‘•‡“—‡–‹ƒŽŽ›ƒ‡†‡…–‹‘ʹͲ͸ȋͳȌƒ†‹•‡”–•‡…‘†’”‘˜‹•‘ǤŠ‡•‡…‘†’”‘˜‹•‘•ŠƒŽŽ
’”‘˜‹†‡–Šƒ–™Š‡”‡–Š‡–ƒš‹•”‡“—‹”‡†–‘„‡†‡†—…–‡†—†‡”‡…–‹‘ͳͻͶƒ†‡”ƒ‡–……‘—–—„‡”ȋȌ
‹•‘–’”‘˜‹†‡†ǡ–Š‡•ŠƒŽŽ„‡ƒ––Š‡”ƒ–‡‘ˆͷΨǤ
Payments of other sums to Non-Residents [Section 195]
›’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ‘Ǧ”‡•‹†‡–‘”ˆ‘”‡‹‰…‘’ƒ›ƒ›‹–‡”‡•–‘”ƒ›‘–Š‡”•—…Šƒ”‰‡ƒ„Ž‡
–‘‹…‘‡Ǧ–ƒš‹†‹ƒǡ‘–„‡‹‰•ƒŽƒ”‹‡•ǡ•ŠƒŽŽƒ––Š‡–‹‡‘ˆ’ƒ›‡–ǡ†‡†—…––ƒšƒ––Š‡”ƒ–‡•‹ˆ‘”…‡Ǥ
–Š‡…ƒ•‡‘ˆ‹–‡”‡•–’ƒ›ƒ„Ž‡„›–Š‡‰‘˜‡”‡–‘”ƒ’—„Ž‹…•‡…–‘”„ƒ‘”ƒ’—„Ž‹…ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘™‹–Š‹–Š‡
‡ƒ‹‰‘ˆ‡…–‹‘ͳͲȋʹ͵Ȍǡ†‡†—…–‹‘‘ˆ–ƒš•ŠƒŽŽ„‡ƒ†‡‘Ž›ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ‹…ƒ•Š‘”„›‹••—‡
‘ˆƒ…Š‡“—‡‘”†”ƒˆ–‘”„›ƒ›‘–Š‡”‘†‡Ǥ
”‡†‹–‘ˆƒ›ƒ‘—––‘Ǯ—•’‡•‡……‘—–ǯ‘”ƒ›‘–Š‡”ƒ……‘—–‹–Š‡„‘‘•‘ˆƒ……‘—–‘ˆ–Š‡’‡”•‘Ž‹ƒ„Ž‡–‘’ƒ›
•—…Š‹…‘‡‹•ƒŽ•‘†‡‡‡†–‘„‡Ǯ…”‡†‹–ǯ‘ˆ–Š‡‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡ƒ†ƒ‡•–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•
•‡…–‹‘ƒ’’Ž‹…ƒ„Ž‡–‘•—…Š…ƒ•‡•Ǥ
ˆ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”•—…Š’ƒ›‡–•ǡˆ‡‡Ž•–Šƒ––Š‡™Š‘Ž‡ƒ‘—–™‘—Ž†‘–„‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡‹–Š‡
…ƒ•‡‘ˆ”‡…‹’‹‡–Š‡ƒ›ƒ‡ƒƒ’’Ž‹…ƒ–‹‘–‘–Š‡••‡••‹‰ˆϐ‹…‡”–‘†‡–‡”‹‡–Š‡…Šƒ”‰‡ƒ„Ž‡’‘”–‹‘ƒ†Š‡
•ŠƒŽŽ †‡†—…– –ƒš ‘ –Š‡ •— •‘ †‡–‡”‹‡†Ǥ —”–Š‡”ǡ –Š‡ ƒ••‡••‡‡ ƒ› ƒ’’Ž› –‘ –Š‡ ••‡••‹‰ ˆϐ‹…‡” –‘ ‰”ƒ– ƒ
…‡”–‹ϐ‹…ƒ–‡ˆ‘”‡‹–Š‡”‘†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡‘”†‡†—…–‹‘ƒ–ƒŽ‘™‡””ƒ–‡Ǥˆ–Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡ
Š‡…ƒ‹••—‡ƒ…‡”–‹ϐ‹…ƒ–‡ƒ……‘”†‹‰Ž›ƒ†–Š‡…‡”–‹ϐ‹…ƒ–‡•ŠƒŽŽ”‡ƒ‹‹ˆ‘”…‡–‹ŽŽ–Š‡‡š’‹”›‘ˆ–Š‡’‡”‹‘†•’‡…‹ϐ‹‡†
–Š‡”‡‹‘”‹–•…ƒ…‡ŽŽƒ–‹‘„›–Š‡••‡••‹‰‘ˆϐ‹…‡”™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
Š‡”‡’ƒ›‡”‹•”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰ƒ›•—–‘ƒ‘”‡•‹†‡–…ƒƒ‡ƒƒ’’Ž‹…ƒ–‹‘‹•—…Šˆ‘”ƒ†ƒ‡”
–‘–Š‡••‡••‹‰ˆϐ‹…‡”ǡ–‘†‡–‡”‹‡–Š‡’‘”–‹‘‘ˆ•—…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‹•—…Šƒ‡”ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ƒ›‡–ƒ†‡„›†‹ƒ…‘’ƒ›–‘ǤǤ‘’ƒ›ˆ‘”—•‡‘ˆ‹–•†ƒ–ƒ„ƒ•‡‹•‘–•—„Œ‡…–‡†–‘—†‡”‡…–‹‘ͳͻͷ
‘ˆ–Š‡…‘‡ƒš…–ǤǦȏ–†Ǥ˜ǤǤǤǤȋ͸ͶͶͻȌͿͺͿȋƒ‰ǤȌȐǤ
Rate of TDS under Section 195 ǣƒ–‡•’”‡•…”‹„‡†—†‡”–Š‡…–Šƒ˜‡–‘„‡‹…”‡ƒ•‡†„›•—”…Šƒ”‰‡ƒ†Š‡ƒŽ–Šƒ†
‡†—…ƒ–‹‘…‡••ƒ––Š‡’”‡•…”‹„‡†”ƒ–‡Ǥˆ–Š‡’ƒ›‡–‹•„‡‹‰ƒ†‡ƒ•’‡””ƒ–‡•ǡ–Š‡–Š‡”‡‹•‘‡‡†–‘ƒ††
•—”…Šƒ”‰‡ƒ†…‡••ǤŠ‡”ƒ–‡•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

Particulars TDS Rates

…‘‡‹”‡•’‡…–‘ˆ‹˜‡•–‡–ƒ†‡„›ƒ ʹͲΨ

…‘‡„›–Š‡™ƒ›‘ˆŽ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹•‹‡…–‹‘ͳͳͷ‹…ƒ•‡‘ˆƒ ͳͲΨ

…‘‡„›™ƒ›‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹• ͳͲΨ

Š‘”–‡”ƒ’‹–ƒŽ‰ƒ‹•—†‡”•‡…–‹‘ͳͳͳ ͳͷΨ

›‘–Š‡”‹…‘‡„›™ƒ›‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹• ʹͲΨ

–‡”‡•–’ƒ›ƒ„Ž‡‘‘‡›„‘””‘™‡†‹ ‘”‡‹‰—””‡…› ʹͲΨ

…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›’ƒ›ƒ„Ž‡„›
‘˜‡”‡–‘”ƒ†‹ƒ…‘…‡” ͳͲΨ

…‘‡„›™ƒ›‘ˆ”‘›ƒŽ–›ǡ‘–„‡‹‰”‘›ƒŽ–›‘ˆ–Š‡ƒ–—”‡”‡ˆ‡””‡†–‘„‡’ƒ›ƒ„Ž‡„›
‘˜‡”‡–‘”ƒ ͳͲΨ
†‹ƒ…‘…‡”
…‘‡„›™ƒ›‘ˆˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›ƒ„Ž‡„›
‘˜‡”‡–‘”ƒ†‹ƒ…‘…‡” ͳͲΨ

›‘–Š‡”‹…‘‡ ͵ͲΨ

ƒ›‡–‘ˆ†‹˜‹†‡†–‘ƒ‘Ǧ”‡•‹†‡–•Šƒ”‡Š‘Ž†‡”„›†‘‡•–‹……‘’ƒ› ʹͲΨ
 518 Lesson 9 Ȉ EP-TL

Income payable “Net of Tax” [Section 195A]

 ƒ …ƒ•‡ ‘–Š‡” –Šƒ –Šƒ– ”‡ˆ‡””‡† –‘ ‹ •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ͳͻʹǡ ™Š‡”‡ —†‡” ƒ ƒ‰”‡‡‡– ‘” ‘–Š‡”
ƒ””ƒ‰‡‡–ǡ–Š‡–ƒš…Šƒ”‰‡ƒ„Ž‡‘ƒ›‹…‘‡”‡ˆ‡””‡†–‘‹–Š‡ˆ‘”‡‰‘‹‰’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”‹•–‘„‡„‘”‡
„›–Š‡’‡”•‘„›™Š‘–Š‡‹…‘‡‹•’ƒ›ƒ„Ž‡ǡ–Š‡ǡˆ‘”–Š‡’—”’‘•‡•‘ˆ†‡†—…–‹‘‘ˆ–ƒš—†‡”–Š‘•‡’”‘˜‹•‹‘•
•—…Š‹…‘‡•ŠƒŽŽ„‡‹…”‡ƒ•‡†–‘•—…Šƒ‘—–ƒ•™‘—Ž†ǡƒˆ–‡”†‡†—…–‹‘‘ˆ–ƒš–Š‡”‡‘ƒ––Š‡”ƒ–‡•‹ˆ‘”…‡ˆ‘”–Š‡
ϐ‹ƒ…‹ƒŽ ›‡ƒ” ‹ ™Š‹…Š •—…Š ‹…‘‡ ‹• ’ƒ›ƒ„Ž‡ǡ „‡ ‡“—ƒŽ –‘ –Š‡ ‡– ƒ‘—– ’ƒ›ƒ„Ž‡ —†‡” •—…Š ƒ‰”‡‡‡– ‘”
ƒ””ƒ‰‡‡–Ǥ
Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations
[Section 196]
‡…–‹‘ͳͻ͸’”‘˜‹†‡•–Šƒ–‘†‡†—…–‹‘‘ˆ–ƒš•ŠƒŽŽ„‡ƒ†‡ȋ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‡ˆ‘”‡‰‘‹‰
’”‘˜‹•‹‘•‘ˆŠƒ’–‡”Ȍ„›ƒ›’‡”•‘ˆ”‘ƒ›•—•’ƒ›ƒ„Ž‡–‘ǣ
ȋ‹Ȍ –Š‡
‘˜‡”‡–Ǣ‘”
ȋ‹‹Ȍ –Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒǢ‘”
ȋ‹‹‹Ȍ ƒ…‘”’‘”ƒ–‹‘‡•–ƒ„Ž‹•Š‡†„›‘”—†‡”ƒ‡–”ƒŽ…–™Š‹…Š‹•ǡ—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ǡ
‡š‡’–ˆ”‘‹…‘‡Ǧ–ƒš‘‹–•‹…‘‡Ǣ‘”
ȋ‹˜Ȍ ƒ—–—ƒŽ —†•’‡…‹ϐ‹‡†—†‡”‡…–‹‘ͳͲȋʹ͵ȌǢ
™Š‡”‡•—…Š•—‹•’ƒ›ƒ„Ž‡–‘‹–„›™ƒ›‘ˆ‹–‡”‡•–‘”†‹˜‹†‡†‹”‡•’‡…–‘ˆƒ›•‡…—”‹–‹‡•‘”•Šƒ”‡•‘™‡†„›‹–‘”
‹™Š‹…Š‹–Šƒ•ˆ—ŽŽ„‡‡ϐ‹…‹ƒŽ‹–‡”‡•–ǡ‘”ƒ›‘–Š‡”‹…‘‡ƒ……”—‹‰‘”ƒ”‹•‹‰–‘‹–Ǥ
Š‡”‡‹–Š‡…ƒ•‡‘ˆƒ›‹…‘‡‘ˆƒ›’‡”•‘ǡ–Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡’‡”•‘
Œ—•–‹ϐ‹‡•–Š‡†‡†—…–‹‘‘ˆ‹…‘‡Ǧ–ƒšƒ–ƒ›Ž‘™‡””ƒ–‡‘”‘†‡†—…–‹‘‘ˆ‹…‘‡Ǧ–ƒšǡŠ‡•ŠƒŽŽǡ‘ƒƒ’’Ž‹…ƒ–‹‘
ƒ†‡„›–Š‡ƒ••‡••‡‡‹–Š‹•„‡ŠƒŽˆǡ‰‹˜‡–‘Š‹•—…Š…‡”–‹ϐ‹…ƒ–‡ƒ•ƒ›„‡ƒ’’”‘’”‹ƒ–‡ǤŠ‡”‡•—…Š…‡”–‹ϐ‹…ƒ–‡‹•
‰‹˜‡ǡ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–Š‡‹…‘‡•ŠƒŽŽǡ—–‹Ž•—…Š…‡”–‹ϐ‹…ƒ–‡‹•…ƒ…‡ŽŽ‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”ǡ
†‡†—…–‹…‘‡Ǧ–ƒšƒ––Š‡”ƒ–‡••’‡…‹ϐ‹‡†‹–Š‡…‡”–‹ϐ‹…ƒ–‡‘”†‡†—…–‘–ƒšǡƒ•–Š‡…ƒ•‡ƒ›„‡ȏ‡…–‹‘ͳͻ͹ȐǤ
‹–Š‡ˆˆ‡…–ˆ”‘ͳ•– ƒ—ƒ”›ʹͲͳ͵ǡ‘–ƒš•ŠƒŽŽ„‡†‡†—…–‡†‘–Š‡ˆ‘ŽŽ‘™‹‰’ƒ›‡–•™Š‡”‡•—…Š’ƒ›‡–‹•ƒ†‡
„›ƒ’‡”•‘–‘ƒ„ƒŽ‹•–‡†‹–Š‡‡…‘†…Š‡†—Ž‡–‘–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ…–ǡͳͻ͵Ͷǡ‡š…Ž—†‹‰ƒˆ‘”‡‹‰„ƒǢ
Tax shall not be deducted on payments related to :

Bank guarantee
commission; &
Cash
management
credit card or service charges;
debit card
commission for depository
transaction charges on
between the maintenance of
merchant deMat accounts;
establishment &
acquirer bank.
Tax shall not be
deducted on
payments related to

Charges for
Clearing charges warehousing
(MICR charges); services for
commodities;

underwriting
service charges;
 Lesson 9 Ȉ Procedural Compliance 519

Income from units to offshore fund [Section 196B]

……‘”†‹‰–‘‡…–‹‘ͳͻ͸–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–‹”‡•’‡…–‘ˆ—‹–•”‡ˆ‡””‡†–‘‹‡…–‹‘
ͳͳͷ‘”„›™ƒ›‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆ•—…Š—‹–•‹•’ƒ›ƒ„Ž‡–‘ƒ‘ˆˆ•Š‘”‡ˆ—†
•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ„›ƒ›‘†‡ǡ
™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒš–Š‡”‡‘ƒ––Š‡”ƒ–‡‘ˆͳͲΨΪ—”…Šƒ”‰‡ǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ΪͶΨǤ
Income from foreign currency bonds or shares of Indian Company [Section 196C]
‡…–‹‘ͳͻ͸’”‘˜‹†‡•ˆ‘”ƒ†‡†—…–‹‘‘ˆ‹…‘‡Ǧ–ƒšƒ––Š‡”ƒ–‡‘ˆ–‡’‡”…‡–ˆ”‘–Š‡‹–‡”‡•–‹…‘‡‘”†‹˜‹†‡†
‹…‘‡‹”‡•’‡…–‘ˆ„‘†•‘”•Šƒ”‡•”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͳͷ‘”„›™ƒ›‘ˆŽ‘‰Ǧ–‡”…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘
–Š‡–”ƒ•ˆ‡”‘ˆ•—…Š„‘†‘”•Šƒ”‡…ƒ’‹–ƒŽ–‘ƒ‘Ǧ”‡•‹†‡–Ǥ
Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰•—…Š’ƒ›‡–•ŠƒŽŽƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡
’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆ„›ƒ›‘†‡™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ†‡†—…––Š‡‹…‘‡Ǧ–ƒš–Š‡”‡‘̷ͳͲΨΪ
—”…Šƒ”‰‡ǡ‹ˆƒ’’Ž‹…ƒ„Ž‡ΪͶΨǤ
Income of Foreign Institutional Investors from securities [Section 196D]
……‘”†‹‰–‘‡…–‹‘ͳͻ͸ǡ™Š‡”‡ƒ›‹…‘‡‹”‡•’‡…–‘ˆ•‡…—”‹–‹‡•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌ‘ˆ—„Ǧ•‡…–‹‘‘ˆ
‡…–‹‘ͳͳͷ‹•’ƒ›ƒ„Ž‡–‘ƒ ‘”‡‹‰•–‹–—–‹‘ƒŽ˜‡•–‘”ǡ–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡–•ŠƒŽŽǡ
ƒ––Š‡–‹‡‘ˆ…”‡†‹–‘ˆ•—…Š‹…‘‡–‘–Š‡ƒ……‘—–‘ˆ–Š‡’ƒ›‡‡‘”ƒ––Š‡–‹‡‘ˆ’ƒ›‡––Š‡”‡‘ˆǡ™Š‹…Š‡˜‡”‹•
‡ƒ”Ž‹‡”ǡ†‡†—…–‹…‘‡Ǧ–ƒšƒ––Š‡”ƒ–‡‘ˆʹͲΨǤ
Ž•‘‘†‡†—…–‹‘‘ˆ–ƒš•ŠƒŽŽ„‡ƒ†‡ˆ”‘ƒ›‹…‘‡„›™ƒ›‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‹•‹‰ˆ”‘–Š‡–”ƒ•ˆ‡”‘ˆ•‡…—”‹–‹‡•
”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͳͷ’ƒ›ƒ„Ž‡–‘ƒ ‘”‡‹‰•–‹–—–‹‘ƒŽ˜‡•–‘”Ǥ
‡™’”‘˜‹•‘‹•‹•‡”–‡†–‘‡…–‹‘ͳͻ͸™Š‹…Š’”‘˜‹†‡•–Šƒ–‹…ƒ•‡‘ˆƒ’ƒ›‡‡–‘™Š‘ƒƒ‰”‡‡‡–—†‡”
‡…–‹‘ͻͲȋͳȌ‘”‡…–‹‘ͻͲȋͳȌƒ’’Ž‹‡•ƒ†•—…Š’ƒ›‡‡Šƒ•ˆ—”‹•Š‡†–Š‡–ƒš”‡•‹†‡…›…‡”–‹ϐ‹…ƒ–‡ȋȌ”‡ˆ‡””‡†
–‘‹‡…–‹‘ͻͲȋͶȌ‘”‡…–‹‘ͻͲȋͶȌ‘ˆ–Š‡…–ǡ–Š‡–Š‡–ƒš•ŠƒŽŽ„‡†‡†—…–‡†ƒ––Š‡”ƒ–‡‘ˆʹͲΨ‘”–Š‡”ƒ–‡‘””ƒ–‡•
‘ˆ‹…‘‡Ǧ–ƒš’”‘˜‹†‡†‹•—…Šƒ‰”‡‡‡–ˆ‘”•—…Š‹…‘‡ǡ™Š‹…Š‡˜‡”‹•Ž‘™‡”Ǥ[Amendment vide Finance Act,
2021]
RATIONALIZATION OF TAX DEDUCTION AT SOURCE PROVISIONS RELATING TO PAYMENTS BY
CATEGORY-I AND CATEGORY-II ALTERNATE INVESTMENT FUNDS TO ITS INVESTORS
Š‡ ‹ƒ…‡…–ǡʹͲͳͷŠƒ†‹•‡”–‡†ƒ•’‡…‹ƒŽ–ƒšƒ–‹‘”‡‰‹‡‹”‡•’‡…–‘ˆƒ–‡‰‘”›Ǧƒ†Ž–‡”ƒ–‹˜‡˜‡•–‡–
—†•ȋ‹˜‡•–‡–ˆ—†Ȍ”‡‰‹•–‡”‡†™‹–ŠǤŠ‡•’‡…‹ƒŽ–ƒšƒ–‹‘”‡‰‹‡‹•‹–‡†‡†–‘‡•—”‡–ƒš’ƒ••–Š”‘—‰Š
•–ƒ–—•‹”‡•’‡…–‘ˆ–Š‡•‡‹˜‡•–‡–ˆ—†•™Š‹…Šƒ”‡…‘ŽŽ‡…–‹˜‡‹˜‡•–‡–˜‡Š‹…Ž‡•ǤŠ‡•’‡…‹ƒŽ”‡‰‹‡‹•…‘–ƒ‹‡†
‹•‡…–‹‘•ͳͲȋʹ͵ ȌǡͳͲȋʹ͵ Ȍǡͳͳͷƒ†ͳͻͶ‘ˆ–Š‡…–Ǥ†‡”–Š‹•”‡‰‹‡ǡ–Š‡‹…‘‡‘ˆ–Š‡‹˜‡•–‡–
ˆ—†ȋ‘–„‡‹‰‹–Š‡ƒ–—”‡‘ˆ„—•‹‡••‹…‘‡Ȍ‹•‡š‡’–‹–Š‡Šƒ†•‘ˆ‹˜‡•–‡–ˆ—†„—–‹…‘‡”‡…‡‹˜‡†„›
–Š‡‹˜‡•–‘”ˆ”‘–Š‡‹˜‡•–‡–ˆ—†ȋ‘–Š‡”–Šƒ‹…‘‡™Š‹…Š‹•–ƒš‡†ƒ––Š‡Ž‡˜‡Ž‘ˆ‹˜‡•–‡–ˆ—†Ȍ‹•–ƒšƒ„Ž‡
‹–Š‡Šƒ†•‘ˆ‹˜‡•–‘”ǤŠ‡–ƒšƒ–‹‘‹–Š‡Šƒ†•‘ˆ‹˜‡•–‘”•‹•‹–Š‡•ƒ‡ƒ‡”ƒ†‹–Š‡•ƒ‡’”‘’‘”–‹‘ƒ•
‹– ™‘—Ž† Šƒ˜‡ „‡‡ǡ Šƒ† –Š‡ ‹˜‡•–‘” ”‡…‡‹˜‡† •—…Š ‹…‘‡ †‹”‡…–Ž› ƒ† ‘– –Š”‘—‰Š –Š‡ ‹˜‡•–‡– ˆ—†Ǥ Š‡
‡š‹•–‹‰’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͻͶ’”‘˜‹†‡•–Šƒ–‹”‡•’‡…–‘ˆƒ›‹…‘‡…”‡†‹–‡†‘”’ƒ‹†„›–Š‡‹˜‡•–‡–
ˆ—†–‘‹–•‹˜‡•–‘”ǡƒ–ƒš†‡†—…–‹‘ƒ–•‘—”…‡ȋȌ•ŠƒŽŽ„‡ƒ†‡„›–Š‡‹˜‡•–‡–ˆ—†̷ͳͲΨ‘ˆ–Š‡‹…‘‡Ǥ
†‡”•‡…–‹‘ͳͻ͹‘ˆ–Š‡…–ǡˆƒ…‹Ž‹–›ˆ‘”…‡”–‹ϐ‹…ƒ–‡ˆ‘”†‡†—…–‹‘‘ˆ–ƒšƒ–Ž‘™‡””ƒ–‡‘”‘†‡†—…–‹‘‹•ƒ˜ƒ‹Žƒ„Ž‡‹
”‡•’‡…–‘ˆ•‡…–‹‘•‡—‡”ƒ–‡†–Š‡”‡‹ǡ‹ˆ–Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––‘–ƒŽ‹…‘‡‘ˆ–Š‡”‡…‹’‹‡–Œ—•–‹ϐ‹‡•
‹••—‡‘ˆ•—…Š…‡”–‹ϐ‹…ƒ–‡ǡ•‡…–‹‘ͳͻͶ‹•…—””‡–Ž›‘–‹…Ž—†‡†‹–Š‹•’”‘˜‹•‹‘Ǥ
–Šƒ•„‡‡”‡’”‡•‡–‡†–Šƒ––Š‡‡š‹•–‹‰”‡‰‹‡Šƒ•…”‡ƒ–‡†…‡”–ƒ‹†‹ˆϐ‹…—Ž–‹‡•ǤŠ‡‘Ǧ”‡•‹†‡–‹˜‡•–‘”‹•
‘–ƒ„Ž‡–‘…Žƒ‹„‡‡ϐ‹–‘ˆŽ‘™‡”‘””ƒ–‡‘ˆ–ƒšƒ–‹‘™Š‹…Š‹•ƒ˜ƒ‹Žƒ„Ž‡–‘Š‹—†‡”–Š‡”‡Ž‡˜ƒ–‘—„Ž‡ƒšƒ–‹‘
˜‘‹†ƒ…‡‰”‡‡‡–ȋȌǡƒ††‡†—…–‹‘‘ˆ–ƒš̷ͳͲΨ‹•–‘„‡—†‡”–ƒ‡ƒ†ƒ–‘”‹Ž›‡˜‡‹ˆ—†‡”ǡ–Š‡
‹…‘‡‹•‘––ƒšƒ„Ž‡‹†‹ƒǤŠ‡”‡‹•‘ˆƒ…‹Ž‹–›ˆ‘”ƒ›‹˜‡•–‘”–‘ƒ’’”‘ƒ…Š–Š‡••‡••‹‰ˆϐ‹…‡”ˆ‘”•‡‡‹‰
…‡”–‹ϐ‹…ƒ–‡ˆ‘”ƒ–ƒŽ‘™‡”‘””ƒ–‡‹”‡•’‡…–‘ˆ†‡†—…–‹‘•ƒ†‡—†‡”•‡…–‹‘ͳͻͶǤ
‘”†‡”–‘”ƒ–‹‘ƒŽ‹•‡–Š‡”‡‰‹‡‹”‡•’‡…–‘ˆ’ƒ›‡–•ƒ†‡„›–Š‡‹˜‡•–‡–ˆ—†•–‘‹–•‹˜‡•–‘”•ǡ•‡…–‹‘
ͳͻͶ‘ˆ–Š‡…–Šƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ––Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”ƒ‹‰–Š‡’ƒ›‡––‘–Š‡‹˜‡•–‘”
 520 Lesson 9 Ȉ EP-TL

•ŠƒŽŽ†‡†—…–‹…‘‡Ǧ–ƒš—†‡”•‡…–‹‘ͳͻͶƒ––Š‡”ƒ–‡‘ˆͳͲΨ™Š‡”‡–Š‡’ƒ›‡‡‹•ƒ”‡•‹†‡–ƒ†ƒ––Š‡”ƒ–‡•‹
ˆ‘”…‡ ™Š‡”‡ –Š‡ ’ƒ›‡‡ ‹• ƒ ‘Ǧ”‡•‹†‡– ȋ‘– „‡‹‰ ƒ …‘’ƒ›Ȍ ‘” ƒ ˆ‘”‡‹‰ …‘’ƒ›Ǥ —”–Š‡”ǡ ‹– ‹• ’”‘˜‹†‡† –‘
ƒ‡†•‡…–‹‘ͳͻ͹–‘‹…Ž—†‡•‡…–‹‘ͳͻͶ‹–Š‡Ž‹•–‘ˆ•‡…–‹‘•ˆ‘”™Š‹…Šƒ…‡”–‹ϐ‹…ƒ–‡ˆ‘”†‡†—…–‹‘‘ˆ–ƒšƒ–
Ž‘™‡””ƒ–‡‘”‘†‡†—…–‹‘‘ˆ–ƒš…ƒ„‡‘„–ƒ‹‡†Ǥ‘•‡“—‡–‹ƒŽ…Šƒ‰‡•ƒ”‡ƒŽ•‘ƒ†‡–‘–Š‡†‡ϐ‹‹–‹‘‘ˆDz”ƒ–‡•
‹ˆ‘”…‡dz•‘ƒ•–‘‹…Ž—†‡•‡…–‹‘ͳͻͶ‹‹–Ǥ
Š‡•‡ƒ‡†‡–•™‹ŽŽ–ƒ‡‡ˆˆ‡…–ˆ”‘ͳ•– —‡ǡʹͲͳ͸Ǥ
No deduction to be made in certain cases [Section 197A]
‡…–‹‘ͳͻ͹’”‘˜‹†‡•–Šƒ–‘†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡‹•–‘„‡ƒ†‡ˆ”‘ȋ‹Ȍ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡȋ‹‹Ȍ†‹˜‹†‡†•ǡƒ†
ȋ‹‹‹Ȍ’ƒ›‡–•‹”‡•’‡…–‘ˆ†‡’‘•‹–•—†‡”ǡ‡–…Ǥ‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ
ȋ‹Ȍ Š‡”‡…‹’‹‡–‘ˆ•—…Š‹…‘‡‹•ƒ‹†‹˜‹†—ƒŽƒ†”‡•‹†‡–‹†‹ƒǤ
ȋ‹‹Ȍ —…Š ’‡”•‘ ˆ—”‹•Š‡• ƒ †‡…Žƒ”ƒ–‹‘ ‹ ™”‹–‹‰ ‹ †—’Ž‹…ƒ–‡ǡ ‹ –Š‡ ’”‡•…”‹„‡† ˆ‘” ƒ† ˜‡”‹ϐ‹‡† ‹ –Š‡
’”‡•…”‹„‡†ƒ‡”ǡ–‘–Š‡’ƒ›‡”‘ˆ•—…Š‹…‘‡–‘–Š‡‡ˆˆ‡…––Šƒ––Š‡–ƒš‘Š‹•‡•–‹ƒ–‡†–‘–ƒŽ‹…‘‡‘ˆ
–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š‹…‘‡‹•–‘„‡‹…Ž—†‡†ˆ‘”…‘’—–‹‰Š‹•–‘–ƒŽ‹…‘‡™‹ŽŽ„‡‹ŽǤ

—„Ǧ•‡…–‹‘ͳͻ͹ȋͳȌ’”‘˜‹†‡•–Šƒ–‹…ƒ•‡‘ˆ‹–‡”‡•–‘–Š‡”–Šƒ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡƒ†‡…Žƒ”ƒ–‹‘”‡ˆ‡””‡†–‘
ƒ„‘˜‡…ƒ„‡ˆ—”‹•Š‡†„›ƒ›’‡”•‘ȋ‘–Š‡”–Šƒƒ…‘’ƒ›‘”ƒϐ‹”ȌǤ
Š‡’ƒ›‡”‘ˆ–Š‡ƒˆ‘”‡•ƒ‹†‹…‘‡™‹ŽŽ†‡Ž‹˜‡”–‘Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš‘‡…‘’›‘ˆ
–Š‡†‡…Žƒ”ƒ–‹‘ȋ”‡…‡‹˜‡†ˆ”‘–Š‡”‡…‹’‹‡–‘ˆ‹…‘‡Ȍ‘‘”„‡ˆ‘”‡–Š‡͹–Š†ƒ›‘ˆ–Š‡‘–Š‡š–ˆ‘ŽŽ‘™‹‰–Š‡
‘–Š‹™Š‹…Š–Š‡†‡…Žƒ”ƒ–‹‘‹•ˆ—”‹•Š‡†ǤˆŠ‡ˆƒ‹Ž•–‘†‘•‘Š‡™‹ŽŽ„‡Ž‹ƒ„Ž‡–‘ƒ’‡ƒŽ–›‘ˆƒƒ‘—–™Š‹…Š•ŠƒŽŽ
‘–„‡Ž‡••–Š‡‘‡Š—†”‡†”—’‡‡•„—–™Š‹…Šƒ›‡š–‡†–‘–™‘Š—†”‡†”—’‡‡•ˆ‘”‡˜‡”›†ƒ›†—”‹‰™Š‹…Š–Š‡
†‡ˆƒ—Ž–…‘–‹—‡•Ǥ
‡”–‹ϐ‹…ƒ–‡‘ˆ–ƒš†‡†—…–‡†ȏ‡…–‹‘ʹͲ͵Ȑ
Š‡’‡”•‘™Š‘†‡†—…–•–ƒšŠƒ•–‘‹••—‡ƒ…‡”–‹ϐ‹…ƒ–‡‹–Š‡’”‡•…”‹„‡†ˆ‘”–‘–Š‡’‡”•‘ˆ”‘™Š‘•‡’ƒ›‡–•
†‡†—…–‹‘Šƒ•„‡‡ƒ†‡ǡ•Š‘™‹‰–Š‡”‡‹–Š‡’ƒ”–‹…—Žƒ”•‘ˆ’ƒ›‡–ǡ–Š‡†ƒ–‡‘ˆ–ƒš†‡†—…–‡†ƒ–•‘—”…‡ƒ†–Š‡
†ƒ–‡‘ˆ‹–•…”‡†‹––‘–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ–‹•‘–Š‡„ƒ•‹•‘ˆ–Š‹•…‡”–‹ϐ‹…ƒ–‡–Šƒ––Š‡’ƒ›‡‡…ƒ…Žƒ‹…”‡†‹–ˆ‘”
–ƒš’ƒ‹†‘Š‹•„‡ŠƒŽˆƒ†…ƒ…Žƒ‹”‡ˆ—†ǡ‹ˆƒ›ǡ†—‡–‘Š‹‘–Š‡„ƒ•‹•‘ˆ–ƒšŽ‹ƒ„‹Ž‹–›ˆ‘”–Š‡”‡Ž‡˜ƒ–›‡ƒ”Ǥ
Consequence in the event of default [Section 201]
Š‡”‡ƒ›’‡”•‘ǡ‹…Ž—†‹‰–Š‡’”‹…‹’ƒŽ‘ˆϐ‹…‡”‘ˆƒ…‘’ƒ›ǡ
ȋƒȌ ™Š‘‹•”‡“—‹”‡†–‘†‡†—…–ƒ›•—‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–Ǣ‘”
ȋ„Ȍ ”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͻʹǡ„‡‹‰ƒ‡’Ž‘›‡”ǡ

†‘‡•‘–†‡†—…–ǡ‘”†‘‡•‘–’ƒ›ǡ‘”ƒˆ–‡”•‘†‡†—…–‹‰ˆƒ‹Ž•–‘’ƒ›ǡ–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡–ƒšǡƒ•”‡“—‹”‡†„›
‘”—†‡”–Š‹•…–ǡ–Š‡ǡ•—…Š’‡”•‘ǡ•ŠƒŽŽǡ™‹–Š‘—–’”‡Œ—†‹…‡–‘ƒ›‘–Š‡”…‘•‡“—‡…‡•™Š‹…ŠŠ‡ƒ›‹…—”ǡ„‡
†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–‹”‡•’‡…–‘ˆ•—…Š–ƒšǣ
‘™‡˜‡”ǡƒ›’‡”•‘ǡ‹…Ž—†‹‰–Š‡’”‹…‹’ƒŽ‘ˆϐ‹…‡”‘ˆƒ…‘’ƒ›ǡ™Š‘ˆƒ‹Ž•–‘†‡†—…––Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡
–ƒš‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”‘–Š‡•—’ƒ‹†–‘ƒ”‡•‹†‡–‘”‘–Š‡•—…”‡†‹–‡†–‘–Š‡
ƒ……‘—–‘ˆƒ”‡•‹†‡–•ŠƒŽŽ‘–„‡†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–‹”‡•’‡…–‘ˆ•—…Š–ƒš‹ˆ•—…Š’ƒ›‡‡Ǥ
ȋ‹Ȍ Šƒ•ˆ—”‹•Š‡†Š‹•”‡–—”‘ˆ‹…‘‡—†‡”•‡…–‹‘ͳ͵ͻǢ
ȋ‹‹Ȍ Šƒ•–ƒ‡‹–‘ƒ……‘—–•—…Š•—ˆ‘”…‘’—–‹‰‹…‘‡‹•—…Š”‡–—”‘ˆ‹…‘‡Ǣƒ†
ȋ‹‹‹Ȍ Šƒ•’ƒ‹†–Š‡–ƒš†—‡‘–Š‡‹…‘‡†‡…Žƒ”‡†„›Š‹‹•—…Š”‡–—”‘ˆ‹…‘‡ǡƒ†–Š‡’‡”•‘ˆ—”‹•Š‡• ƒ
…‡”–‹ϐ‹…ƒ–‡–‘–Š‹•‡ˆˆ‡…–ˆ”‘ƒƒ……‘—–ƒ–‹ˆ‘”ʹ͸Ǥ

‘’‡ƒŽ–›•ŠƒŽŽ„‡…Šƒ”‰‡†—†‡”•‡…–‹‘ʹʹͳˆ”‘•—…Š’‡”•‘ǡ—Ž‡••–Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ–•—…Š
’‡”•‘ǡ™‹–Š‘—–‰‘‘†ƒ†•—ˆϐ‹…‹‡–”‡ƒ•‘•ǡŠƒ•ˆƒ‹Ž‡†–‘†‡†—…–ƒ†’ƒ›•—…Š–ƒšǤ
‘‘”†‡”•ŠƒŽŽ„‡ƒ†‡†‡‡‹‰ƒ’‡”•‘–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–ˆ‘”ˆƒ‹Ž—”‡–‘†‡†—…––Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ
–Š‡–ƒšˆ”‘ƒ’‡”•‘”‡•‹†‡–‹†‹ƒǡƒ–ƒ›–‹‡ƒˆ–‡”–Š‡‡š’‹”›‘ˆ•‡˜‡›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
‹™Š‹…Š’ƒ›‡–‹•ƒ†‡‘”…”‡†‹–‹•‰‹˜‡Ǥ
 Lesson 9 Ȉ Procedural Compliance 521

ˆƒ’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡ˆƒ‹Ž•–‘†‡†—…––Š‡ƒ’’”‘’”‹ƒ–‡–ƒš‘”ǡƒˆ–‡”ƒ‹‰–Š‡†—‡†‡†—…–‹‘
ˆƒ‹Ž•–‘†‡’‘•‹–‹–‹–‘–Š‡
‘˜‡”‡––”‡ƒ•—”›ǡŠ‡•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–ƒ†•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘ǣ
ȋ‹Ȍ ƒ›‡–‘ˆ–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡–ƒšƒ•†—‡Ǣ
ȋ‹‹Ȍ –‡”‡•–ƒ––Š‡”ƒ–‡‘ˆͳΨ’‡”‘–Š‘”’ƒ”–‘ˆ–Š‡‘–Š‘–Š‡–ƒšˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š–ƒš™ƒ•
†‡†—…–‹„Ž‡–‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š–ƒš‹•†‡†—…–‡†Ǣƒ†
ȋ‹‹‹Ȍ –‡”‡•–ƒ––Š‡”ƒ–‡‘ˆͳǤͷΨ’‡”‘–Š‘”’ƒ”–‘ˆ–Š‡‘–Š‘–Š‡–ƒšˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š–ƒš™ƒ•
†‡†—…–‡†–‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š–ƒš‹•ƒ…–—ƒŽŽ›’ƒ‹†Ǣ
 ‘™‡˜‡”ǡ‹…ƒ•‡ƒ›’‡”•‘ǡ‹…Ž—†‹‰–Š‡’”‹…‹’ƒŽ‘ˆϐ‹…‡”‘ˆƒ…‘’ƒ›ˆƒ‹Ž•–‘†‡†—…––Š‡™Š‘Ž‡‘”ƒ›
’ƒ”–‘ˆ–Š‡–ƒš‘–Š‡•—’ƒ‹†–‘ƒ”‡•‹†‡–‘”‘–Š‡•—…”‡†‹–‡†–‘–Š‡ƒ……‘—–‘ˆƒ”‡•‹†‡–„—–‹•‘–
†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–ǡ–Š‡‹–‡”‡•–•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š–ƒš™ƒ•
†‡†—…–‹„Ž‡–‘–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ”‡–—”‘ˆ‹…‘‡„›•—…Š”‡•‹†‡–Ǥ
ȋ‹˜Ȍ ‡ƒŽ–›™Š‹…Šƒ›„‡ƒ•Š‹‰Šƒ•–Š‡ƒ‘—–‘ˆ–Š‡–ƒš‹†‡ˆƒ—Ž–ǡŠ‘™‡˜‡”ǡ‘’‡ƒŽ–›•ŠƒŽŽ„‡…Šƒ”‰‡†
—†‡”‡…–‹‘ʹʹͳˆ”‘•—…Š’‡”•‘—Ž‡••–Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ–•—…Š’‡”•‘Šƒ•ǡ™‹–Š‘—–
‰‘‘†ƒ†•—ˆϐ‹…‹‡–”‡ƒ•‘•ǡˆƒ‹Ž‡†–‘†‡†—…–ƒ†’ƒ›–Š‡–ƒšǢƒ†
ȋ˜Ȍ ”‘•‡…—–‹‘Ǧ™Š‡”‡–Š‡ƒ‘—–‘ˆ–ƒš™Š‹…Š–Š‡”‡•’‘•‹„Ž‡’‡”•‘Šƒ•ˆƒ‹Ž‡†–‘†‡†—…–‘”’ƒ›‡š…‡‡†•
•ǤͳǡͲͲǡͲͲͲŠ‡•ŠƒŽŽ„‡’—‹•Šƒ„Ž‡™‹–Š”‹‰‘”‘—•‹’”‹•‘‡–ˆ‘”ƒ–‡”‘–Ž‡••–Šƒ͸‘–Š•„—–
™Š‹…Šƒ›„‡‡š–‡†‡†–‘͹›‡ƒ”•ƒ†™‹–Šϐ‹‡Ǥƒ›‘–Š‡”…ƒ•‡ǡŠ‡•ŠƒŽŽ„‡’—‹•Š‡†™‹–Šƒ”‹‰‘”‘—•
‹’”‹•‘‡–‘ˆƒ–‡”‘ˆ‘–Ž‡••–Šƒ͵‘–Š•„—–™Š‹…Šƒ›„‡‡š–‡†‡†–‘͵›‡ƒ”•ƒ†™‹–Šϐ‹‡Ǥ

Š‡”‡–Š‡ƒ‘—–‘ˆ–ƒšŠƒ•‘–„‡‡†‡’‘•‹–‡†ƒˆ–‡”‹–‹•†‡†—…–‡†ǡ–Š‡ƒ‘—–‘ˆ–ƒš–‘‰‡–Š‡”™‹–Š–Š‡‹–‡”‡•–
•ŠƒŽŽ„‡ƒ…Šƒ”‰‡—’‘ƒŽŽ–Š‡ƒ••‡–•‘ˆ–Š‡’‡”•‘Ǥ
Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡™‹ŽŽ‰‹˜‡–Š‡Ž‹•–‘ˆˆ‘”•‘ˆ…‡”–‹ϐ‹…ƒ–‡•–‘„‡‹••—‡†ƒ†‡…‡••ƒ”›ˆ‘”–‘„‡ϐ‹Ž‡†™‹–Š••‡••‹‰
ˆϐ‹…‡”„›–Š‡’‡”•‘•†‡†—…–‹‰–Š‡–ƒšƒ–•‘—”…‡Ǥ

‘”‘Ǥ‘ˆ ‘”‘Ǥ‘ˆ”‡–—”
Categories of payment –‘„‡ϐ‹Ž‡†™‹–Š
‡”–‹ϐ‹…ƒ–‡ ••‡••‹‰ˆϐ‹…‡”

(1) (2) (3)

ȋƒȌ ƒŽƒ”‹‡• ͳʹǡͳ͸ǡ ʹͶ

ͳ͸
ȋ„Ȍ –‡”‡•–‘‡…—”‹–‹‡•ȋ
‘˜‡”‡–Ȍ ͳ͸ ʹ͸

ȋ…Ȍ –‡”‡•–‘‡…—”‹–‹‡•ȋ‘–Š‡”•Ȍ ͳ͸ ʹ͸

ȋ†Ȍ –‡”‡•–‘–Š‡”–Šƒ–‡”‡•–‘‡…—”‹–‹‡• ͳ͸ ʹ͸

ȋ‡Ȍ ‹˜‹†‡†• ͳ͸ ʹ͸

ȋˆȌ ‹‹‰•ˆ”‘‘––‡”‹‡•Ȁ”‘••™‘”†’—œœŽ‡• ͳ͸ ʹ͸

ȋ‰Ȍ ‹‹‰•ˆ”‘‘”•‡ƒ…‡• ͳ͸ ʹ͸

ȋŠȌ ƒ›‡–•–‘…‘–”ƒ…–‘”•Ȁ—„Ǧ…‘–”ƒ…–‘”• ͳ͸ ʹ͸

ȋ‹Ȍ •—”ƒ…‡…‘‹••‹‘ ͳ͸ ʹ͸

ȋŒȌ ‘Ǧ”‡•‹†‡–•’‘”–•‡‘”•’‘”–•ƒ••‘…‹ƒ–‹‘ ͳ͸ ʹ͸

ȋȌ ƒ–‹‘ƒŽƒ˜‹‰•…Š‡‡‡–…Ǥ ͳ͸ ʹ͸

 522 Lesson 9 Ȉ EP-TL

ȋŽȌ …‘‡‘”‡’—”…Šƒ•‡‘ˆ—‹–•„›—–—ƒŽˆ—†•‘” ͳ͸ ʹ͸

‘‹••‹‘ǡ ‡—‡”ƒ–‹‘ ‘” ‡™ƒ”† ‘ •ƒŽ‡ ‘ˆ Ž‘––‡”› ͳ͸ ʹ͸
ȋȌ
–‹…‡–•

ȋȌ ƒ›‡––‘‘Ǧ”‡•‹†‡– ͳ͸ ʹ͹

ȋ‘Ȍ ‘”‡‹‰…‘’ƒ›„‡‹‰—‹–Š‘Ž†‡”•‘ˆ—–—ƒŽˆ—† ͳ͸ ʹ͹

‹–•Š‡Ž†„›‘ˆˆ•Š‘”‡ˆ—†ƒ†‹…‘‡ˆ”‘ˆ‘”‡‹‰…—””‡…› ͳ͸ ʹ͹

ȋ’Ȍ
„‘†•

ȋ“Ȍ ‡– ͳ͸ ʹ͸

ȋ”Ȍ ‘‹••‹‘ ȋ‘– „‡‹‰ ‹•—”ƒ…‡ …‘‹••‹‘Ȍ ‘” ͳ͸ ʹ͸

„”‘‡”ƒ‰‡
ȋ•Ȍ ‡‡ˆ‘”’”‘ˆ‡••‹‘ƒŽ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡• ͳ͸ ʹ͸

TAX COLLECTION AT SOURCE (TCS) [SECTION 206C]

ƒš…‘ŽŽ‡…–‡†ƒ–•‘—”…‡ȋȌ‹•–Š‡–ƒš…‘ŽŽ‡…–‡†„›ƒ•‡ŽŽ‡”™Š‹…ŠŠ‡…‘ŽŽ‡…–•ˆ”‘–Š‡„—›‡”ƒ––Š‡–‹‡‘ˆ•ƒŽ‡Ǥƒš
‹•–‘„‡…‘ŽŽ‡…–‡†ƒ–•‘—”…‡‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
Case 1 : Sale of :
Particulars Rate of TCS

Ǥ Ž…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘ȋ‘–Š‡”–Šƒ†‹ƒƒ†‡ˆ‘”‡‹‰Ž‹“—‘”Ȍ ͳΨǤ

Ǥ †‹ƒƒ†‡ˆ‘”‡‹‰Ž‹“—‘” ͳΨ

Ǥ ‡†—Ž‡ƒ˜‡• ͷΨ

Ǥ ‹„‡”‘„–ƒ‹‡†—†‡”–Š‡ˆ‘”‡•–Ž‡ƒ•‡ ʹǤͷΨ

Ǥ ‹„‡”‘„–ƒ‹‡†„›ƒ›‘†‡‘–Š‡”–Šƒ—†‡”ˆ‘”‡•–Ž‡ƒ•‡ ʹǤͷΨ

Ǥ ›‘–Š‡”ˆ‘”‡•–’”‘†—…‡‘–„‡‹‰–‹„‡”‘”–‡†—Ž‡ƒ˜‡• ʹǤͷΨ

Ǥ …”ƒ’ ͳΨ

Ǥ ‹‡”ƒŽ•ǡ„‡‹‰…‘ƒŽ‘”Ž‹‰‹–‡‘”‹”‘‘”‡ ͳΨ

Case 2 :
Grant of lease/license of :
ƒ”‹‰Ž‘–ǡ–‘ŽŽ’Žƒœƒǡ‹‹‰ƒ†“—ƒ””›‹‰ȋ‘–Š‡”–Šƒ‹‹‰ƒ†“—ƒ””›‹‰‘ˆ‹‡”‘‹Žǡ’‡–”‘Ž‡—ƒ†ƒ–—”ƒŽ

ƒ•Ǥ̷ʹΨǤ
Case 3 :
Sale of :
‘–‘”˜‡Š‹…Ž‡‘ˆ–Š‡˜ƒŽ—‡‡š…‡‡†‹‰•ͳͲǡͲͲǡͲͲͲ™Š‡–Š‡”’ƒ›‡–‹•”‡…‡‹˜‡†‹…Š‡“—‡‘”„›ƒ›‘–Š‡”‘†‡Ǥ
̷ͳΨ
 Lesson 9 Ȉ Procedural Compliance 523

Case 4:
Authorised dealer receiving from a buyer for remittance out of India and seller of an overseas tour program
package from a buyer •ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ†‡„‹–‹‰–Š‡ƒ‘—–’ƒ›ƒ„Ž‡„›–Š‡„—›‡”‘”ƒ––Š‡–‹‡‘ˆ”‡…‡‹’–‘ˆ
•—…Šƒ‘—–ˆ”‘–Š‡•ƒ‹†„—›‡”ǡ„›ƒ›‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ…‘ŽŽ‡…–ˆ”‘–Š‡„—›‡”(As amended by Finance
Act, 2020 this ™‹ŽŽ„‡‡ˆˆ‡…–‹˜‡ˆ”‘ͳ•–…–‘„‡”ǡʹͲʹͲȌ:
ƒǤ ̷ͷΨˆ‘”ƒ‘—–‡š…‡‡†‹‰•Ǥ͹ƒ…•‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”ƒ†‹•ˆ‘”ƒ’—”’‘•‡‘–Š‡”–Šƒ’—”…Šƒ•‡‘ˆ
‘˜‡”•‡ƒ• –‘—” ’”‘‰”ƒ ’ƒ…ƒ‰‡Ǥ Š‡ –‘—” ‘’‡”ƒ–‘” •ŠƒŽŽ …‘ŽŽ‡…–  ‘ –Š‡ ‡–‹”‡ •— ƒ• –Š‡”‡ ‹• ‘
–Š”‡•Š‘Ž†Ž‹‹–ˆ‘”Š‹Ǥ
„Ǥ ̷ ͲǤͷΨ ‹ˆ –Š‡ ƒ‘—– ‡š…‡‡†‹‰ •Ǥ ͹ ƒ…• „‡‹‰ ”‡‹––‡† ‘—– ‹• ƒ Ž‘ƒ ‘„–ƒ‹‡† ˆ”‘ ƒ› ϐ‹ƒ…‹ƒŽ
‹•–‹–—–‹‘ƒ•†‡ϐ‹‡†‹•‡…–‹‘ͺͲǡˆ‘”–Š‡’—”’‘•‡‘ˆ’—”•—‹‰ƒ›‡†—…ƒ–‹‘Ǥ
…Ǥ ̷ͳͲΨ‹ˆ‘‘”ƒ†Šƒƒ”‹•ˆ—”‹•Š‡†Ǥ

Case 5:
A seller, who receives consideration for sale of any goods ‘ˆ–Š‡ƒ‰‰”‡‰ƒ–‡˜ƒŽ—‡‡š…‡‡†‹‰•ǤͷͲƒ…•‹ƒ›
’”‡˜‹‘—•›‡ƒ”ǡ‘–Š‡”–Šƒ–Š‡‰‘‘†•„‡‹‰‡š’‘”–‡†‘—–‘ˆ†‹ƒ‘”‰‘‘†•…‘˜‡”‡†‡Ž•‡™Š‡”‡—†‡”–Š‹••‡…–‹‘ǡƒ–
–Š‡–‹‡‘ˆ”‡…‡‹’–‘ˆ•—…Šƒ‘—–ǡ…‘ŽŽ‡…–ˆ”‘–Š‡„—›‡”̷ͲǤͳΨ‘ˆ–Š‡•ƒŽ‡…‘•‹†‡”ƒ–‹‘‡š…‡‡†‹‰•ͷͲ
ƒ…•Ǥ(As amended by Finance Act, 2020)
̷ͳͲΨ‹ˆ‘‘”ƒ†Šƒƒ”‹•ˆ—”‹•Š‡†„›–Š‡„—›‡”Ǥ
Notes : -
ͳǤ …ƒ•‡ͳǡƒš‹•–‘„‡…‘ŽŽ‡…–‡†„›•‡ŽŽ‡”ˆ”‘„—›‡”Ǥ‡ŽŽ‡”‹…Ž—†‡•‡˜‡”›’‡”•‘„—–†‘‡•‘–‹…Ž—†‡ƒ
‹†‹˜‹†—ƒŽ‘” ȋ™Š‘•‡ƒ……‘—–•ƒ”‡‘–”‡“—‹”‡†–‘„‡ƒ—†‹–‡†—†‡”•‡…–‹‘ͶͶȋƒȌȀȋ„Ȍ†—”‹‰–Š‡
ϐ‹ƒ…‹ƒŽ›‡ƒ”’”‡…‡†‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š•ƒŽ‡‹•ƒ†‡ȌǤ
—›‡”†‘‡•‘–‹…Ž—†‡ǣ
ƒǤ  ’—„Ž‹… •‡…–‘” …‘’ƒ›ǡ –Š‡ ‡–”ƒŽ
‘˜–Ǥǡ ƒ –ƒ–‡
‘˜–Ǥǡ ƒ† ƒ „ƒ••›ǡ ƒ ‹‰Š ‘‹••‹‘ǡ
‡‰ƒ–‹‘ǡ‘‹••‹‘ǡ‘•—Žƒ–‡ƒ†–Š‡–”ƒ†‡”‡’”‡•‡–ƒ–‹‘ǡ‘ˆƒˆ‘”‡‹‰•–ƒ–‡ƒ†ƒ…Ž—„Ǣ‘”
„Ǥ „—›‡”‹–Š‡”‡–ƒ‹Ž•ƒŽ‡‘ˆ•—…Š‰‘‘†•’—”…Šƒ•‡†„›Š‹ˆ‘”’‡”•‘ƒŽ…‘•—’–‹‘Ǥ
ʹǤ …ƒ•‡ͳǡ–ƒšŠƒ•–‘„‡…‘ŽŽ‡…–‡†„›–Š‡•‡ŽŽ‡”ƒ––Š‡–‹‡‘ˆ†‡„‹–‹‰–Š‡ƒ‘—–’ƒ›ƒ„Ž‡„›–Š‡„—›‡”–‘
–Š‡ƒ……‘—–‘ˆ„—›‡”‘”ƒ––Š‡–‹‡‘ˆ”‡…‡‹’–‘ˆ•—…Šƒ‘—–ˆ”‘–Š‡„—›‡”‹…ƒ•Š‘”‹••—‡‘ˆ…Š‡“—‡Ȁ
†”ƒˆ–ǡ‘”ƒ›‘–Š‡”‘†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
͵Ǥ …ƒ•‡ͳǡ
‘‘†•’—”…Šƒ•‡†ˆ‘”„‡‹‰—•‡†‹ƒ—ˆƒ…–—”‹‰Ȁ’”‘…‡••‹‰‹•‘–•—„Œ‡…––‘Ǥ ‘”–Š‹•’—”’‘•‡
„—›‡”Šƒ•–‘‰‹˜‡†‡…Žƒ”ƒ–‹‘‹†—’Ž‹…ƒ–‡–‘•‡ŽŽ‡”‹ˆ‘”‘Ǥʹ͹Ǥ‡…Žƒ”ƒ–‹‘™‹–Š‘—–‹•‘–ƒŽ‹†Ǥ
ͶǤ …ƒ•‡ʹǡ‹ˆŽ‹…‡•‡‡‘”Ž‡••‡‡‹•ƒ’—„Ž‹…•‡…–‘”…‘’ƒ›–Š‡‹•‘–ƒ’’Ž‹…ƒ„Ž‡Ǥ
ͷǤ …ƒ•‡͵ǡˆ‘ŽŽ‘™‹‰’‘‹–••Š‘—Ž†„‡‘–‡†ǣ
ƒȌ Š‹•…ƒ•‡‹•ƒ’’Ž‹…ƒ„Ž‡‹…ƒ•‡‘ˆ•ƒŽ‡‘ˆ‘–‘”˜‡Š‹…Ž‡•‹”‡–ƒ‹Ž•ƒŽ‡•ƒ†‘–‹…ƒ•‡‘ˆ•ƒŽ‡•„›
ƒ—ˆƒ…–—”‡”•–‘†‡ƒŽ‡”•Ȁ†‹•–”‹„—–‘”•Ǥ
„Ȍ Š‹•…ƒ•‡‹•‘–ƒ’’Ž‹…ƒ„Ž‡™Š‡”‡„—›‡”‹•–Š‡‡–”ƒŽȀ–ƒ–‡
‘˜–Ǥǡƒ„ƒ••›Ȁ‹‰Š‘‹••‹‘Ȁ
‘•—Žƒ–‡Ȁ”ƒ†‡”‡’”‡•‡–ƒ–‹‘‘ˆˆ‘”‡‹‰
‘˜–ǤǡŽ‘…ƒŽƒ—–Š‘”‹–›‘”ƒ’—„Ž‹…•‡…–‘”…‘’ƒ›™Š‹…Š
‹•‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ…ƒ””›‹‰‘ˆ’ƒ••‡‰‡”•Ǥ
͸Ǥ …ƒ•‡ͶǡŠ‡ƒ—–Š‘”‹•‡††‡ƒŽ‡”•ŠƒŽŽ‘–…‘ŽŽ‡…––Š‡•—‘ƒƒ‘—–‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡•—Šƒ•
„‡‡…‘ŽŽ‡…–‡†„›–Š‡•‡ŽŽ‡”Ǥ”‘˜‹•‹‘•‘ˆ–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›ǡ‹ˆ–Š‡„—›‡”‹•Ž‹ƒ„Ž‡–‘†‡†—…–
–ƒšƒ–•‘—”…‡—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•…–ƒ†Šƒ•†‡†—…–‡†•—…Šƒ‘—–Ǥ
͹Ǥ …ƒ•‡ͷǡˆ‘ŽŽ‘™‹‰’‘‹–••Š‘—Ž†„‡‘–‡†ǣ
ƒȌ Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›ǡ‹ˆ–Š‡„—›‡”‹•Ž‹ƒ„Ž‡–‘†‡†—…––ƒšƒ–•‘—”…‡—†‡”
ƒ›‘–Š‡”’”‘˜‹•‹‘‘ˆ–Š‹•…–‘–Š‡‰‘‘†•’—”…Šƒ•‡†„›Š‹ˆ”‘–Š‡•‡ŽŽ‡”ƒ†Šƒ•†‡†—…–‡†
•—…Šƒ‘—–Ǥ
 524 Lesson 9 Ȉ EP-TL

„Ȍ —›‡” †‘‡• ‘– ‹…Ž—†‡ ‡–”ƒŽ

‘˜‡”‡–ǡ ƒ –ƒ–‡
‘˜‡”‡–ǡ ƒ Ž‘…ƒŽ ƒ—–Š‘”‹–› ƒ ’‡”•‘
‹’‘”–‹‰‰‘‘†•‹–‘†‹ƒǤ
…Ȍ ‡ŽŽ‡”‡ƒ•ƒ’‡”•‘™Š‘•‡–‘–ƒŽ•ƒŽ‡•ǡ‰”‘••”‡…‡‹’–•‘”–—”‘˜‡”ˆ”‘–Š‡„—•‹‡••…ƒ””‹‡†‘„›
Š‹‡š…‡‡†ͳͲ”‘”‡”—’‡‡•†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹
™Š‹…Š–Š‡•ƒŽ‡‘ˆ‰‘‘†•‹•…ƒ””‹‡†‘—–Ǥ

Requirement to Furnish PAN by Collectee [Section 206CC]

Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘ƒ”‡ƒ•—†‡”Ǧ
‘ŽŽ‡…–‡‡•ŠƒŽŽˆ—”‹•ŠŠ‹•–‘–Š‡’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”…‘ŽŽ‡…–‹‰•—…Š–ƒšƒ–•‘—”…‡Ǥˆ‹•‘–‹–‹ƒ–‡†ǡ
–ƒš•ŠƒŽŽ„‡…‘ŽŽ‡…–‡†ƒ––™‹…‡–Š‡‘”ƒŽ”ƒ–‡‘”ƒ––Š‡”ƒ–‡‘ˆͳͲΨǡ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ
ȋ‹Ȍ ‡…Žƒ”ƒ–‹‘ϐ‹Ž‡†—†‡”•‡…–‹‘ʹͲ͸ȋͳȌ•ŠƒŽŽ‘–„‡˜ƒŽ‹†—Ž‡••–Š‡’‡”•‘ϐ‹Ž‹‰–Š‡†‡…Žƒ”ƒ–‹‘ˆ—”‹•Š‡•
Š‹•‹•—…Š†‡…Žƒ”ƒ–‹‘Ǥ
ȋ‹‹Ȍ ‘™‡”–ƒš…‘ŽŽ‡…–‹‘…‡”–‹ϐ‹…ƒ–‡•ŠƒŽŽ‘–„‡‰”ƒ–‡†—Ž‡••ƒ’’Ž‹…ƒ–‹‘‹ ‘”‘Ǥͳ͵„›–Š‡…‘ŽŽ‡…–‡‡
…‘–ƒ‹•Š‹•Ǥ
ȋ‹‹‹Ȍ Š‡…‘ŽŽ‡…–‡‡•ŠƒŽŽˆ—”‹•ŠŠ‹•–‘–Š‡…‘ŽŽ‡…–‘”ƒ†„‘–Š•ŠƒŽŽ‹†‹…ƒ–‡–Š‡•ƒ‡‹ƒŽŽ…‘””‡•’‘†‡…‡ǡ
„‹ŽŽ•ƒ†˜‘—…Š‡”•‡š…Šƒ‰‡†„‡–™‡‡–Š‡Ǥ
ȋ‹˜Ȍ Š‡”‡–Š‡’”‘˜‹†‡†„›–Š‡…‘ŽŽ‡…–‡‡‹•‹˜ƒŽ‹†‘”‹–†‘‡•‘–„‡Ž‘‰–‘–Š‡…‘ŽŽ‡…–‡‡ǡ‹–•ŠƒŽŽ„‡†‡‡‡†
–Šƒ–Šƒ•‘–„‡‡ˆ—”‹•Š‡†–‘–Š‡…‘ŽŽ‡…–‘”Ǥ

Š‡•‡’”‘˜‹•‹‘•ƒ”‡‘–ƒ’’Ž‹…ƒ„Ž‡–‘ƒ‘”‡•‹†‡–™Š‘†‘‡•‘–Šƒ˜‡ƒ›’‡”ƒ‡–‡•–ƒ„Ž‹•Š‡–‹†‹ƒǤ
Ȁˆ‘”‘Ǧϐ‹Ž‡”•‘ˆ…‘‡ƒš‡–—”ȏ‡…–‹‘ʹͲ͸ȀʹͲ͸Ȑ
‡…–‹‘ʹͲ͸ƒ†‡…–‹‘ʹͲ͸Šƒ•„‡‡‹•‡”–‡†–‘’”‘˜‹†‡ˆ‘”ƒŠ‹‰Š‡””ƒ–‡‘ˆ™‹–ŠŠ‘Ž†‹‰–ƒšȀ…‘ŽŽ‡…–‹‘‘ˆ
–ƒšˆ‘”–ƒš’ƒ›‡”•‘–ˆ—”‹•Š‹‰Ȁϐ‹Ž‹‰”‡–—”‘ˆ‹…‘‡Ǥ
‡…–‹‘ʹͲ͸‹•’”‘’‘•‡†–‘ƒ’’Ž›‘ƒ›•—’ƒ‹†‘”’ƒ›ƒ„Ž‡‘”…”‡†‹–‡†„›ƒ†‡†—…–‡‡–‘ƒ•’‡…‹ˆ‹‡†’‡”•‘
ȋ‘–Š‡” –Šƒ ƒ› •— ™Š‡”‡ –ƒš ‹• ”‡“—‹”‡† –‘ „‡ ™‹–ŠŠ‡Ž† —†‡” ‡…–‹‘ ͳͻʹǡ ‡…–‹‘ ͳͻʹǡ ‡…–‹‘ ͳͻͶǡ
‡…–‹‘ ͳͻͶǡ ‡…–‹‘ ͳͻͶ ‘” ‡…–‹‘ ͳͻͶ ‘ˆ –Š‡ …–ȌǤ Š‡ ™‹–ŠŠ‘Ž†‹‰ –ƒš ”ƒ–‡ •ŠƒŽŽ „‡Š‹‰Š‡”‘ˆ–Š‡
„‡Ž‘™ǣ
Ȉ ƒ––™‹…‡–Š‡”ƒ–‡•’‡…‹ϐ‹‡†‹–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘‘ˆ–Š‡…–Ǣ‘”
Ȉ ƒ––™‹…‡–Š‡”ƒ–‡‘””ƒ–‡•‹ˆ‘”…‡Ǣ
Ȉ ‘”ƒ––Š‡”ƒ–‡‘ˆͷΨǤ

‡…–‹‘ ʹͲ͸ ™‹ŽŽ „‡ ƒ’’Ž‹‡† ‘ ƒ› •— ‘” ƒ‘—– ”‡…‡‹˜‡† „› ƒ …‘ŽŽ‡…–‡‡ ˆ”‘ ƒ •’‡…‹ϐ‹‡† ’‡”•‘Ǥ Š‡ –ƒš
…‘ŽŽ‡…–‹‘”ƒ–‡‹–Š‡•ƒ‹†‡…–‹‘•ŠƒŽŽ„‡Š‹‰Š‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ –™‹…‡–Š‡”ƒ–‡•’‡…‹ϐ‹‡†‹–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘‘ˆ–Š‡…–Ǣ‘”
Ȉ –Š‡”ƒ–‡‘ˆͷΨǤ

—”–Š‡”ǡ ‹ˆ –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ʹͲ͸ ȏ”‡“—‹”‡‡– –‘ ˆ—”‹•Š ‡”ƒ‡– ……‘—– —„‡” ȋȐ ‘”
‡…–‹‘ʹͲ͸ȋ”‡“—‹”‡‡––‘ˆ—”‹•Š„›…‘ŽŽ‡…–‡‡Ȍƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘ƒǮ•’‡…‹ˆ‹‡†’‡”•‘ǯ‹ƒ††‹–‹‘–‘
–Š‡•ƒ‹†‡…–‹‘•ǡ–Šƒ–‹•ǡ‡…–‹‘ʹͲ͸ƒ†‡…–‹‘ʹͲ͸ǡ–Š‡–ƒš•ŠƒŽŽ„‡†‡†—…–‡†Ȁ…‘ŽŽ‡…–‡†ƒ–Š‹‰Š‡”‘ˆ
–Š‡–™‘”ƒ–‡•’”‘˜‹†‡†‹–Š‡ƒ„‘˜‡‡…–‹‘•ȋʹͲ͸ȀʹͲ͸Ȍƒ†‹‡…–‹‘ʹͲ͸‘”‡…–‹‘ʹͲ͸‘ˆ–Š‡
…–Ǥ
Š‡–‡”Ǯ•’‡…‹ϐ‹‡†’‡”•‘ǯ‡ƒ•ƒ’‡”•‘ǣ
Ȉ ™Š‘ Šƒ• ‘– ϐ‹Ž‡† –Š‡ ”‡–—”• ‘ˆ ‹…‘‡ ˆ‘” ’”‡…‡†‹‰ –™‘ ƒ••‡••‡– ›‡ƒ”• ‹‡†‹ƒ–‡Ž› ’”‹‘” –‘ –Š‡
’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š –ƒš ‹• ”‡“—‹”‡† –‘ „‡ †‡†—…–‡† ƒ† ˆ‘” ™Š‹…Š –Š‡ –‹‡ Ž‹‹– ‘ˆ ϐ‹Ž‹‰ ”‡–—” ‘ˆ
‹…‘‡—†‡”‡…–‹‘ͳ͵ͻȋͳȌŠƒ•‡š’‹”‡†Ǣƒ†
 Lesson 9 Ȉ Procedural Compliance 525

Ȉ –Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–ƒš†‡†—…–‡†ƒ–•‘—”…‡ƒ†–ƒš…‘ŽŽ‡…–‡†ƒ–•‘—”…‡‹•ͷͲǡͲͲͲ‘”‘”‡‹‡ƒ…Š‘ˆ–Š‡•‡
–™‘’”‡˜‹‘—•›‡ƒ”•Ǥ
ȗŠ‡ –‡” Ǯ•’‡…‹ϐ‹‡† ’‡”•‘ǯ •ŠƒŽŽ ‘– ‹…Ž—†‡ ƒ ‘Ǧ”‡•‹†‡– ™Š‘ †‘‡• ‘– Šƒ˜‡ ƒ ’‡”ƒ‡– ‡•–ƒ„Ž‹•Š‡– ‹
†‹ƒǤ
TIME LIMIT FOR DEPOSITING OF TDS

”Ǥ‘Ǥ Month ‘Ǧ

‘˜–Ǥ‡†—…–‘”• Government Deductors

ͳǤ ’”‹Ž–‘ ͹–Š ‘ˆ –Š‡ ‡š– ‘–Š ‹ Ȉ ƒ‡†ƒ›‹…ƒ•‡•†‡’‘•‹–‡†™‹–Š‘—–…ŠƒŽŽƒ‘Ǥ

‡„”—ƒ”› ™Š‹…Š  ‹• †‡†—…–‡† ʹͺͳǤ
Ȉ ͹–Š ‘ˆ –Š‡ ‡š– ‘–Š ‹ ™Š‹…Š  ‹• †‡†—…–‡† ‹
…ƒ•‡•†‡’‘•‹–‡†™‹–Š…ŠƒŽŽƒ
ʹǤ ƒ”…Š ͵Ͳ–Š’”‹Ž‘ˆ‡š– Ȉ ƒ‡†ƒ›‹…ƒ•‡•†‡’‘•‹–‡†™‹–Š‘—–…ŠƒŽŽƒ‘Ǥ
ϐ‹ƒ…‹ƒŽ›‡ƒ” ʹͺͳǤ
Ȉ ͹–Š ‘ˆ –Š‡ ‡š– ‘–Š ‹ ™Š‹…Š  ‹• †‡†—…–‡† ‹
…ƒ•‡•†‡’‘•‹–‡†™‹–Š…ŠƒŽŽƒ

Note ǣ›•—†‡†—…–‡†—Ȁ•ͳͻͶ•ŠƒŽŽ„‡’ƒ‹†–‘–Š‡…”‡†‹–‘ˆ–Š‡…‡–”ƒŽ‰‘˜‡”‡–™‹–Š‹ƒ’‡”‹‘†‘ˆ͵Ͳ†ƒ›•

ˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡†‡†—…–‹‘‹•ƒ†‡ƒ†•ŠƒŽŽ„‡ƒ……‘’ƒ‹‡†„›ƒ…ŠƒŽŽƒǦ…—Ǧ•–ƒ–‡‡–
‹ ‘”‘Ǥʹ͸Ǥ
Š‡—‡†ƒ–‡–‘•—„‹– ‘”ʹͶ
‡š–‡†‡†ˆ”‘ͳͲ†ƒ›•‘ˆ–Š‡‡†‘ˆ–Š‡”‡Ž‡˜ƒ–‘–Š–‘
Ȉ ͵Ͳ–Š†ƒ›‘ˆ’”‹Ž™Š‡”‡–Š‡•–ƒ–‡‡–”‡Žƒ–‡•–‘–Š‡‘–Š‘ˆƒ”…ŠǢƒ†
Ȉ ͳͷ†ƒ›•ˆ”‘–Š‡‡†‘ˆ”‡Ž‡˜ƒ–‘–ŠǤ

–‹•ˆ—”‹•Š‡†‡Ž‡…–”‘‹…ƒŽŽ›—†‡”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘”‡Ž‡…–”‘‹…ƒŽŽ›ƒŽ‘‰™‹–Š–Š‡˜‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡•–ƒ–‡‡–Ǥ
••—‡‘ˆ‡”–‹ϐ‹…ƒ–‡
˜‡”›’‡”•‘†‡†—…–‹‰–ƒšƒ–•‘—”…‡‹•”‡“—‹”‡†ƒ•’‡”‡…–‹‘ʹͲ͵–‘ˆ—”‹•Šƒ…‡”–‹ϐ‹…ƒ–‡–‘–Š‡’ƒ›‡‡–‘–Š‡‡ˆˆ‡…–
–Šƒ––ƒšŠƒ•„‡‡†‡†—…–‡†ƒŽ‘‰™‹–Š…‡”–ƒ‹‘–Š‡”’ƒ”–‹…—Žƒ”•ǤŠ‹•…‡”–‹ϐ‹…ƒ–‡‹•—•—ƒŽŽ›…ƒŽŽ‡†–Š‡…‡”–‹ϐ‹…ƒ–‡Ǥ
˜‡–Š‡„ƒ•†‡†—…–‹‰–ƒšƒ––Š‡–‹‡‘ˆ’ƒ›‡–‘ˆ’‡•‹‘ƒ”‡”‡“—‹”‡†–‘‹••—‡•—…Š…‡”–‹ϐ‹…ƒ–‡•Ǥ…ƒ•‡‘ˆ
‡’Ž‘›‡‡•”‡…‡‹˜‹‰•ƒŽƒ”›‹…‘‡‹…Ž—†‹‰’‡•‹‘ǡ–Š‡…‡”–‹ϐ‹…ƒ–‡Šƒ•–‘„‡‹••—‡†‹ ‘”‘Ǥͳ͸ǤƒŽŽ‘–Š‡”
…ƒ•‡•ǡ–Š‡…‡”–‹ϐ‹…ƒ–‡‹•–‘„‡‹••—‡†‹ ‘”ͳ͸ǤŠ‡…‡”–‹ϐ‹…ƒ–‡‹•–‘„‡‹••—‡†‹–Š‡†‡†—…–‘”ǯ•‘™•–ƒ–‹‘‡”›Ǥ
‘™‡˜‡”ǡ–Š‡”‡‹•‘‘„Ž‹‰ƒ–‹‘–‘‹••—‡…‡”–‹ϐ‹…ƒ–‡‹…ƒ•‡‘ˆ–ƒšƒ–•‘—”…‡‹•‘–†‡†—…–‡†Ȁ†‡†—…–‹„Ž‡„›˜‹”–—‡
‘ˆ…Žƒ‹•‘ˆ‡š‡’–‹‘•Ȁ†‡†—…–‹‘•Ǥ
—‡ƒ–‡ˆ‘”••—‡‘ˆ‡”–‹ϐ‹…ƒ–‡
ͳ͸ǣ͵ͳ•–ƒ›‘ˆ–Š‡‡š– ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–ƒš‹•†‡†—…–‡†Ǥ
ͳ͸ǣ‹–Š‹ͳͷ†ƒ›•ˆ”‘†—‡†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡•–ƒ–‡‡–‘ˆ–ƒš†‡†—…–‡†—†‡””—Ž‡͵ͳ

Quarter ended Due date of Form 16A

͵Ͳ–Š —‡ ͳͷ–Š—‰—•–

͵Ͳ–Š‡’–‡„‡” ͳͷ–Š‘˜‡„‡”

͵ͳ•–‡…‡„‡” ͳͷ–Š ‡„”—ƒ”›

͵ͳ•–ƒ”…Š ͳͷ–Š —‡

Form 16B : ‹–Š‹ͳͷ†ƒ›•ˆ”‘†—‡†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡…ŠƒŽŽƒ…—•–ƒ–‡‡–‹ ‘”ʹ͸Ǥ

 526 Lesson 9 Ȉ EP-TL

••—‡‘ˆ—’Ž‹…ƒ–‡‡”–‹ϐ‹…ƒ–‡
Š‡”‡–Š‡‘”‹‰‹ƒŽ…‡”–‹ˆ‹…ƒ–‡‹•Ž‘•–ǡ–Š‡†‡†—…–‡‡…ƒƒ’’”‘ƒ…Š–Š‡†‡†—…–‘”ˆ‘”‹••—‡‘ˆƒ†—’Ž‹…ƒ–‡
…‡”–‹ˆ‹…ƒ–‡Ǥ Š‡ †‡†—…–‘” ƒ› ‹••—‡ ƒ †—’Ž‹…ƒ–‡ …‡”–‹ˆ‹…ƒ–‡ ‹ ‘” ‘Ǥ ͳ͸ ‘” ‘” ͳ͸ ƒ• –Š‡ …ƒ•‡ ƒ› „‡Ǥ
‘™‡˜‡”•—…Šƒ…‡”–‹ˆ‹…ƒ–‡Šƒ•–‘„‡…‡”–‹ˆ‹‡†ƒ•†—’Ž‹…ƒ–‡„›–Š‡†‡†—…–‘”Ǥ —”–Š‡”ǡ–Š‡†‡†—…–‘”ƒ›ǡƒ–Š‹•
‘’–‹‘ǡ—•‡†‹‰‹–ƒŽ•‹‰ƒ–—”‡•–‘ƒ—–Š‡–‹…ƒ–‡•—…Š…‡”–‹ˆ‹…ƒ–‡•Ǥ…ƒ•‡‘ˆ‹••—‡‘ˆ•—…Š…‡”–‹ˆ‹…ƒ–‡•–Š‡†‡†—…–‘”
•ŠƒŽŽ‡•—”‡–Šƒ–
ƒȌ Š‡ ’”‘˜‹•‹‘• ‘ˆ •—„Ǧ”—Ž‡ ȋʹȌ ‘ˆ —Ž‡ ͵ͳ ”‡‰ƒ”†‹‰ •’‡…‹ϐ‹…ƒ–‹‘ ‘ˆ ǡ  ‘ˆ †‡†—…–‡‡‡ „‘‘
‹†‡–‹ϐ‹…ƒ–‹‘—„‡”ǢŠƒŽŽƒ‹†‡–‹ϐ‹…ƒ–‹‘—„‡”Ǣ”‡…‡‹’–—„‡”‘ˆ”‡Ž‡˜ƒ–“—ƒ”–‡”Ž›•–ƒ–‡‡–•
‡–…Ǥƒ”‡…‘’Ž‹‡†™‹–ŠǢ
„Ȍ …‡–Š‡…‡”–‹ϐ‹…ƒ–‡‹•†‹‰‹–ƒŽŽ›•‹‰‡†ǡ–Š‡…‘–‡–•‘ˆ–Š‡…‡”–‹ϐ‹…ƒ–‡•ƒ”‡‘–ƒ‡†ƒ„Ž‡–‘…Šƒ‰‡Ǣƒ†
…Ȍ Š‡…‡”–‹ϐ‹…ƒ–‡•Šƒ˜‡ƒ…‘–”‘Ž—„‡”ƒ†ƒŽ‘‰‘ˆ•—…Š…‡”–‹ϐ‹…ƒ–‡•‹•ƒ‹–ƒ‹‡†„›–Š‡†‡†—…–‘”Ǥ

TDS FORMS
›’‡”•‘†‡†—…–‹‰ƒ›•—‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ˆ‘”‡‰‘‹‰’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”•ŠƒŽŽ’ƒ›™‹–Š‹–Š‡
’”‡•…”‹„‡†–‹‡ǡ–Š‡•—•‘†‡†—…–‡†–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ•–Š‡‘ƒ”†–†‹”‡…–•Ǥ —”–Š‡”ǡ
“—ƒ”–‡”Ž›‡–—”‹•”‡“—‹”‡†–‘„‡ˆ‹Ž‡†„›–Š‡ƒ••‡••‡‡™Š‘Šƒ•†‡†—…–‡†–Š‡Ǥ‡–—”•‹…Ž—†‡
ˆ‹‡Ž†•Ž‹‡‘Ǥǡƒ›‡–ǡƒ‘—–†‡†—…–‡†ǡ–›’‡‘ˆ’ƒ›‡–ǡ‘Ǥ‡–…Ǥ

‘”‘Ǥ Particulars
Form 24Q –ƒ–‡‡–ˆ‘”–ƒš†‡†—…–‡†ƒ–•‘—”…‡ˆ”‘•ƒŽƒ”‹‡•
Form 26Q –ƒ–‡‡–ˆ‘”–ƒš†‡†—…–‡†ƒ–•‘—”…‡‘ƒŽŽ’ƒ›‡–•‡š…‡’–•ƒŽƒ”‹‡•
–ƒ–‡‡– ˆ‘” †‡†—…–‹‘ ‘ˆ –ƒš ˆ”‘ ‹–‡”‡•–ǡ †‹˜‹†‡†ǡ ‘” ƒ› ‘–Š‡” •— ’ƒ›ƒ„Ž‡ –‘ ‘Ǧ
Form 27Q
”‡•‹†‡–•
Form 27EQ –ƒ–‡‡–‘ˆ…‘ŽŽ‡…–‹‘‘ˆ–ƒšƒ–•‘—”…‡
‘” •‡…–‹‘ ͳͻͶ•‡’ƒ”ƒ–‡ ”‡–—” ‹• ‘– ”‡“—‹”‡†ǡ …ŠƒŽŽƒ …— ”‡–—” –‘ „‡ ϐ‹Ž‡† ‘ ‘”
Form 26QB ʹ͸ –‘ „‡ †‡’‘•‹–‡† ™‹–Š‹ ƒ ’‡”‹‘† ‘ˆ ͵Ͳ †ƒ›• ˆ”‘ –Š‡ ‡† ‘ˆ –Š‡ ‘–Š‹™Š‹…Š–Š‡
†‡†—…–‹‘‹•ƒ†‡Ǥ

Š‡“—ƒ”–‡”Ž›”‡–—”•–ƒ–‡‡–••Š‘—Ž†„‡ƒ……‘’ƒ‹‡†„›ƒ•‹‰‡†˜‡”‹ϐ‹…ƒ–‹‘‹ ‘”‘Ǥʹ͹Ǥ ‘”ʹ͹‹•ƒ

…‘–”‘Ž…Šƒ”–‘ˆ“—ƒ”–‡”Ž›•–ƒ–‡‡–•–‘„‡ϐ‹Ž‡†„›†‡†—…–‘”•Ȁ…‘ŽŽ‡…–‘”•ƒŽ‘‰™‹–Š“—ƒ”–‡”Ž›•–ƒ–‡‡–•Ǥ–‹•
ƒ•—ƒ”›‘ˆ”‡–—”•™Š‹…Š…‘–ƒ‹•…‘–”‘Ž–‘–ƒŽ•‘ˆǮƒ‘—–’ƒ‹†ǯƒ†Ǯ‹…‘‡–ƒš†‡†—…–‡†ƒ–•‘—”…‡ǯǤ
TDS Return
 ”‡–—” ‘ˆ  ‹• ƒ …‘’”‡Š‡•‹˜‡ •–ƒ–‡‡– …‘–ƒ‹‹‰ †‡–ƒ‹Ž• ‘ˆ ’ƒ›‡– ƒ†‡ ƒ† –ƒš‡• †‡†—…–‡† –Š‡”‡‘
ƒŽ‘‰™‹–Š‘–Š‡”’”‡•…”‹„‡††‡–ƒ‹Ž•Ǥ•’‡”•‡…–‹‘ʹͲͲȋ͵Ȍ‘ˆ–Š‡…–ǡ–Š‡—‡ƒ–‡ˆ‘”ϐ‹Ž‹‰‡–—”ȋ„‘–Š‘Ž‹‡
ƒ•™‡ŽŽƒ•’Š›•‹…ƒŽȌ‹•ƒ•ˆ‘ŽŽ‘™•ǣ

Quarter ended Due Date for Form 24Q Form 27Q Form 27EQ
& Form 26Q
’”‹Ž–‘ —‡ ͵ͳ•– —Ž› ͵ͳ•– —Ž› ͳͷ–Š —Ž›
—Ž›–‘‡’– ͵ͳ•–…– ͵ͳ•–…– ͳͷ–Š…–
…––‘‡… ͵ͳ•– ƒ ͵ͳ•– ƒ ͳͷ–Š ƒ
ƒ–‘ƒ”…Š ͵ͳ•–ƒ› ͵ͳ•–ƒ› ͳͷ–Šƒ›

Note ǣ Ǯ‹Žǯ  ”‡–—” ‹• ‘– ƒ†ƒ–‘”›ǡ Š‘™‡˜‡” –‘ ˆƒ…‹Ž‹–ƒ–‡ –Š‡ †‡†—…–‘”• ƒ† —’†ƒ–‡ †ƒ–ƒ ‰‘˜‡”‡– Šƒ•
’”‘˜‹†‡†ƒˆƒ…‹Ž‹–›ˆ‘”†‡…Žƒ”‹‰‹Ž”‡–—”Ǥ
Š‡•–ƒ–‡‡–ƒ›„‡ˆ—”‹•Š‡†‹ƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”•ƒ‡Ž›ǣ
 Lesson 9 Ȉ Procedural Compliance 527

ƒȌ ƒ’‡”ˆ‘”
„Ȍ Ž‡…–”‘‹…ƒŽŽ›ǡ—†‡”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘…‡†—”‡•ǡˆ‘”ƒ–•ƒ†•–ƒ†ƒ”†••’‡…‹ϐ‹‡†
—†‡”•—„Ǧ”—Ž‡ȋͷȌ‘ˆ—Ž‡͵ͳ
…Ȍ Ž‡…–”‘‹…ƒŽŽ›ǡƒŽ‘‰™‹–Š–Š‡˜‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡•–ƒ–‡‡–‹ ‘”ʹ͹‘”˜‡”‹ϐ‹‡†–Š”‘—‰Šƒ‡Ž‡…–”‘‹…
’”‘…‡••‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘…‡†—”‡•ǡˆ‘”ƒ–•ƒ†•–ƒ†ƒ”†••’‡…‹ϐ‹‡†—†‡”•—„Ǧ”—Ž‡ȋͷȌ‘ˆ—Ž‡͵ͳ
–‹•–‘„‡‘–‡†–Šƒ–‹…ƒ•‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰“—ƒ”–‡”Ž›ǡ•–ƒ–‡‡–•ƒ”‡–‘„‡†‡Ž‹˜‡”‡†‡Ž‡…–”‘‹…ƒŽŽ›Ǣ
ƒȌ ˜‡”›
‘˜‡”‡–†‡†—…–‘”ǡ
„Ȍ ‘”’‘”ƒ–‡†‡†—…–‘”ǡ
…Ȍ Š‡ †‡†—…–‘” ‹• ƒ ’‡”•‘ ”‡“—‹”‡† –‘ ‰‡– Š‹• ƒ……‘—–• ƒ—†‹–‡† —†‡” •‡…Ǥ ͶͶ  ‹ –Š‡ ‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ‘”
†Ȍ Š‡—„‡”‘ˆ†‡†—…–‡‡ǯ•”‡…‘”†•‹ƒ•–ƒ–‡‡–ˆ‘”ƒ›“—ƒ”–‡”‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹•–™‡–›‘”‘”‡Ǥ

—…Š“—ƒ”–‡”Ž›•–ƒ–‡‡–•ƒ”‡–‘„‡†‡Ž‹˜‡”‡†‡Ž‡…–”‘‹…ƒŽŽ›—†‡”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘”‡Ž‡…–”‘‹…ƒŽŽ›™‹–Š˜‡”‹ϐ‹…ƒ–‹‘
‘ˆ •–ƒ–‡‡– ‹ ˆ‘” ʹ͹ ‘” ˜‡”‹ϐ‹‡† –Š”‘—‰Š ƒ ‡Ž‡…–”‘‹… ’”‘…‡•• ‹ ƒ……‘”†ƒ…‡ ™‹–Š ˆ‘”ƒ– ƒ† ’”‘…‡†—”‡
•’‡…‹ϐ‹‡† ‹ ”—Ž‡ ͵ͳȋͷȌǤ —”–Š‡”ǡ ƒ †‡…Žƒ”ƒ–‹‘ ‹ ‘” ʹ͹ ‹• ƒŽ•‘ –‘ „‡ •—„‹––‡† ‹ ’ƒ’‡” ˆ‘”ƒ–Ǥ —ƒ”–‡”Ž›
•–ƒ–‡‡–•ƒ”‡ƒŽ•‘–‘„‡ϐ‹Ž‡†„›•—…Š†‡†—…–‘”•‹‡Ž‡…–”‘‹…ˆ‘”ƒ–™‹–Š–Š‡‡Ǧ–‡”‡†‹ƒ”›ƒ–ƒ›‘ˆ–Š‡
ƒ…‹Ž‹–ƒ–‹‘‡–”‡•ǡ’ƒ”–‹…—Žƒ”•‘ˆ™Š‹…Šƒ”‡ƒ˜ƒ‹Žƒ„Ž‡ƒ–™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹ƒ†ƒ–Š––’ǣȀȀ–‹Ǥ•†ŽǤ…‘
’‡”•‘‘–Š‡”–Šƒƒ†‡†—…–‘”•’‡…‹ϐ‹‡†ƒ„‘˜‡ƒ›ƒ–Š‹•‘’–‹‘†‡Ž‹˜‡”–Š‡“—ƒ”–‡”Ž›•–ƒ–‡‡–•‡Ž‡…–”‘‹…ƒŽŽ›‹
…‘’—–‡”‡†‹ƒƒ•’”‘˜‹†‡†ƒ„‘˜‡Ǥ‘™‡˜‡”ǡ‹–‹•‘–ƒ†ƒ–‘”›ˆ‘”‹––‘†‘•‘Ǥ
–‹•ƒ†ƒ–‘”›ˆ‘”–Š‡†‡†—…–‘”–‘“—‘–‡–Š‡ˆ‘ŽŽ‘™‹‰‹“—ƒ”–‡”Ž›•–ƒ–‡‡–•ǣ
Ȉ 
Ȉ ‘ˆ–Š‡†‡†—…–‘”ȋ‡š…‡’–™Š‡”‡†‡†—…–‘”‹•ƒ‘ˆϐ‹…‡‘ˆ–Š‡‰‘˜‡”‡–Ȍ
Ȉ ‘ˆƒŽŽ–Š‡†‡†—…–‡‡•
Ȉ ƒ”–‹…—Žƒ”• ‘ˆ –ƒš ’ƒ‹† –‘ –Š‡ ‡–”ƒŽ
‘˜‡”‡– ‹…Ž—†‹‰ ‘‘ †‡–‹ϐ‹…ƒ–‹‘ —„‡” ‘” ŠƒŽŽƒ
†‡–‹ϐ‹…ƒ–‹‘—„‡”ƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Ȉ ƒ”–‹…—Žƒ”•‘ˆƒ‘—–’ƒ‹†‘”…”‡†‹–‡†‘™Š‹…Š–ƒš™ƒ•‘–†‡†—…–‡†‹˜‹‡™‘ˆ‹••—‡‘ˆ…‡”–‹ϐ‹…ƒ–‡‘ˆ‘
†‡†—…–‹‘‘ˆ–ƒš—Ȁ•ͳͻ͹„›–Š‡ƒ••‡••‹‰‘ˆϐ‹…‡”–‘–Š‡’ƒ›‡‡

Refund of TDS
…ƒ•‡‘ˆ‡š…‡••†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡ǡ…Žƒ‹‘ˆ”‡ˆ—†‘ˆ•—…Š‡š…‡••…ƒ„‡ƒ†‡„›–Š‡†‡†—…–‘”ǤŠ‡
‡š…‡••ƒ‘—– ‹•”‡ˆ—†ƒ„Ž‡ ƒ•’‡”’”‘…‡†—”‡ Žƒ‹† †‘™ ˆ‘””‡ˆ—† ‘ˆ™Š‡”‡‹–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡
ƒ…–—ƒŽ’ƒ›‡–ƒ†‡„›–Š‡†‡†—…–‘”ƒ†–Š‡–ƒš†‡†—…–‹„Ž‡ƒ–•‘—”…‡ǡ™‹ŽŽ„‡–”‡ƒ–‡†ƒ•–Š‡‡š…‡••’ƒ›‡–ƒ†‡Ǥ
…ƒ•‡•—…Š‡š…‡••’ƒ›‡–‹•†‹•…‘˜‡”‡†„›–Š‡†‡†—…–‘”†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”…‘…‡”‡†ǡ–Š‡’”‡•‡–•›•–‡
’‡”‹–•…”‡†‹–‘ˆ–Š‡‡š…‡••’ƒ›‡–‹–Š‡“—ƒ”–‡”Ž›•–ƒ–‡‡–‘ˆ‘ˆ–Š‡‡š–“—ƒ”–‡”†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
…ƒ•‡ǡ–Š‡†‡†—…–‹‘‘ˆ•—…Š‡š…‡••ƒ‘—–‹•ƒ†‡„‡›‘†–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”…‘…‡”‡†ǡ•—…Š…Žƒ‹…ƒ„‡ƒ†‡
–‘–Š‡••‡••‹‰ˆϐ‹…‡”ȋȌ…‘…‡”‡†Ǥ‘™‡˜‡”ǡ‘…Žƒ‹‘ˆ”‡ˆ—†…ƒ„‡ƒ†‡ƒˆ–‡”–™‘›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ
ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–ƒš™ƒ•†‡†—…–‹„Ž‡ƒ–•‘—”…‡Ǥ
TDS CHART FY 2021-22 “AY 2022-23”
CATEGORY A - WHEN RECIPIENT IS RESIDENT

TDS (SC : Nil, EC :

Nature of payment
Nil, SHEC : Nil)
Section 192 -ƒ›‡–‘ˆ•ƒŽƒ”›ǣ‘”ƒŽ•Žƒ„”ƒ–‡•ƒ”‡ƒ’’Ž‹…ƒ„Ž‡Ϊ—”…Šƒ”‰‡ƒ•ƒ’’Ž‹…ƒ„Ž‡Ϊ̷ͶΨ

Section 192A Ǧƒ›‡–‘ˆ–ƒšƒ„Ž‡ƒ……——Žƒ–‡†„ƒŽƒ…‡‘ˆ’”‘˜‹†‡– ˆ—† ͳͲΨ

528 Lesson 9 Ȉ EP-TL

Section 193 -–‡”‡•–‘•‡…—”‹–‹‡•ǣ ͳͲΨ

ƒȌ ›†‡„‡–—”‡•Ȁ•‡…—”‹–‹‡•ˆ‘”‘‡›‹••—‡†„›‘”‘„‡ŠƒŽˆ‘ˆƒ›Ž‘…ƒŽƒ—–Š‘”‹–›Ȁ
•–ƒ–—–‘”›…‘”’‘”ƒ–‹‘
„Ȍ Ž‹•–‡††‡„‡–—”‡•‘ˆƒ…‘’ƒ›
…Ȍ ƒ›•‡…—”‹–›‘ˆ–Š‡‡–”ƒŽ‘”–ƒ–‡
‘˜‡”‡–
†Ȍ ƒ›‘–Š‡”‹–‡”‡•–‘•‡…—”‹–‹‡•ȋ‹…Ž—†‹‰‹–‡”‡•–‘‘ǦŽ‹•–‡††‡„‡–—”‡•Ȍ
Section 194 -‹˜‹†‡† ͳͲΨ

Section 194A - –‡”‡•–‘–Š‡”–Šƒ‹–‡”‡•–‘•‡…—”‹–‹‡• ͳͲΨ

Section 194B -‹‹‰•ˆ”‘Ž‘––‡”›‘”…”‘••™‘”†’—œœŽ‡‘”…ƒ”†‰ƒ‡‘”‘–Š‡”‰ƒ‡‘ˆ ͵ͲΨ
ƒ›•‘”–
Section 194BB -‹‹‰•ˆ”‘Š‘”•‡”ƒ…‡• ͵ͲΨ
Section 194C - ƒ›‡–‘”…”‡†‹––‘ƒ”‡•‹†‡–…‘–”ƒ…–‘”Ȁ•—„Ǧ…‘–”ƒ…–‘”
ƒȌ ’ƒ›‡–Ȁ…”‡†‹––‘ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž› ͳΨ
„Ȍ ’ƒ›‡–Ȁ…”‡†‹––‘ƒ›’‡”•‘‘–Š‡”–Šƒƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž› ʹΨ
Section 194D - •—”ƒ…‡…‘‹••‹‘ ͷΨ
Section 194DA Ǧƒ›‡–‹”‡•’‡…–‘ˆŽ‹ˆ‡‹•—”ƒ…‡’‘Ž‹…› ͷΨ
Section 194EE - ƒ›‡–‹”‡•’‡…–‘ˆ†‡’‘•‹–•—†‡”ƒ–‹‘ƒŽƒ˜‹‰•…Š‡‡ǡͳͻͺ͹ ͳͲΨ

Section 194F -ƒ›‡–‘ƒ……‘—–‘ˆ”‡’—”…Šƒ•‡‘ˆ—‹–•‘ˆ ‘” ʹͲΨ

Section 194G -‘‹••‹‘‘•ƒŽ‡‘ˆŽ‘––‡”›–‹…‡–• ͷΨ

Section 194H -‘‹••‹‘‘”„”‘‡”ƒ‰‡ ͷΨ

Section 194-I Ȃ‡– 

ƒȌ”‡–‘ˆ’Žƒ–ƒ†ƒ…Š‹‡”› ʹΨ
„Ȍ”‡–‘ˆŽƒ†‘”„—‹Ž†‹‰‘”ˆ—”‹–—”‡‘”ϐ‹––‹‰ ͳͲΨ
Section 194IA - ƒ›‡–Ȁ…”‡†‹–‘ˆ…‘•‹†‡”ƒ–‹‘–‘ƒ”‡•‹†‡––”ƒ•ˆ‡”‘”ˆ‘”–”ƒ•ˆ‡”‘ˆƒ› ͳΨ
‹‘˜ƒ„Ž‡’”‘’‡”–›ȋ‘–Š‡”–Šƒ”—”ƒŽƒ‰”‹…—Ž–—”ƒŽŽƒ†ȌǦ

Section 194IB Ǧƒ›‡–‘ˆ”‡–„›ƒ‹†‹˜‹†—ƒŽ‘” ‘–•—„Œ‡…–‡† –‘–ƒšƒ—†‹– —†‡” ͷΨ

‡…–‹‘ͶͶ
Section 194IC Ǧ ƒ›‡– —†‡” ‘‹–‡˜‡Ž‘’‡–‰”‡‡‡– –‘ ƒ ”‡•‹†‡–‹†‹˜‹†—ƒŽ‘” ͳͲΨ
 ™Š‘–”ƒ•ˆ‡”•Žƒ†‘”„—‹Ž†‹‰ƒ•’‡”•—…Š ƒ‰”‡‡‡–
Section 194J Ǧ ”‘ˆ‡••‹‘ƒŽ ˆ‡‡•ǡ ”‘›ƒŽ–› ‘” ”‡—‡”ƒ–‹‘ –‘ ƒ †‹”‡…–‘” ȋʹΨ ‹ˆ ’ƒ›‡‡ ‹• ͳͲΨ
‡‰ƒ‰‡†‹–Š‡„—•‹‡••‘ˆ…ƒŽŽ…‡–‡”Ȍ

Section 194K Ȃ…‘‡‘—‹–•‘–Š‡”–Šƒƒ’‹–ƒŽ

ƒ‹• ͳͲΨ

Section 194LA Ǧƒ›‡–‘ˆ…‘’‡•ƒ–‹‘‘ƒ…“—‹•‹–‹‘‘ˆ…‡”–ƒ‹ ‹‘˜ƒ„Ž‡’”‘’‡”–› ͳͲΨ

Section 194LBA(1) Ǧ ƒ›‡– ‘ˆ –Š‡ ƒ–—”‡ ”‡ˆ‡””‡† –‘ ‹ •‡…–‹‘ ͳͲȋʹ͵ Ȍ ‘” •‡…–‹‘ ͳͲΨ
ͳͲȋʹ͵ ȌȋƒȌȋ™‹–Š‡ˆˆ‡…–ˆ”‘ —‡ͳǡʹͲͳ͸Ȍ‘”•‡…–‹‘ͳͲȋʹ͵ Ȍ„›„—•‹‡••–”—•––‘”‡•‹†‡–
—‹–Š‘Ž†‡”•

Section 194LBB Ǧ ƒ›‡– ‹ ”‡•’‡…– ‘ˆ —‹–• ‘ˆ ‹˜‡•–‡– ˆ—†•’‡…‹ϐ‹‡†‹•‡…–‹‘ ͳͲΨ
ͳͳͷ
Lesson 9 Ȉ Procedural Compliance 529

Section 194LBC(1) Ǧƒ›‡– ‹”‡•’‡…–‘ˆƒ ‹˜‡•–‡–‹ƒ•‡…—”‹–‹•ƒ–‹‘–”—•–•’‡…‹ϐ‹‡†

‹ …Žƒ—•‡ ȋ†Ȍ ‘ˆ –Š‡ š’Žƒƒ–‹‘ ‘……—””‹‰ ƒˆ–‡” •‡…–‹‘ ͳͳͷȋ™‹–Š ‡ˆˆ‡…– ˆ”‘ —‡ ͳǡ
ʹͲͳ͸ȌǦ ʹͷΨ
Ȉ ‹ˆ”‡…‹’‹‡–‹•ƒ‹†‹˜‹†—ƒŽ‘”ƒ‹†——†‹˜‹†‡†ˆƒ‹Ž› ͵ͲΨ
Ȉ ‹ˆ”‡…‹’‹‡–‹•ƒ›‘–Š‡”’‡”•‘

Section 194 LC Ȃ–‡”‡•––‘‘‡•‹†‡– ͷΨ

Section 194 LD Ȃ–‡”‡•–‘ƒ†
‘˜‡”‡–•‡…—”‹–‹‡• ͷΨ
Section 194 M Ȃƒ›‡––‘‘–”ƒ…–‘”„›†‹˜‹†—ƒŽȀ ȋ‘„ƒ•‡†Ȍ ͷΨ
Section 194 N Ȃƒ•Š™‹–Š†”ƒ™ƒŽˆ”‘„ƒȀ‘•–‘ˆϐ‹…‡ ʹΨ‘”ͷΨ
Section 194 O Ȃƒ›‡––‘‡Ǧ…‘‡”…‡ƒ”–‹…‹’ƒ–„› ͳΨ
‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”
Section 194 P Ȃ‡†—…–‹‘‘ˆ–ƒš„›•’‡…‹ϐ‹‡†„ƒ‹…ƒ•‡‘ˆ‡‹‘”‹–‹œ‡Šƒ˜‹‰ƒ‰‡‘ˆ͹ͷ ƒš‘‘–ƒŽ
‘”‘”‡ ‹…‘‡̷‹ˆ‘”…‡
Section 194 Q –ƒ›‡–‘ˆ…‡”–ƒ‹•—ˆ‘”—”…Šƒ•‡‘ˆ
‘‘†• ͲǤͳΨ

CATEGORY B - WHEN RECIPIENT IS NON-RESIDENT OR FOREIGN COMPANY

Aggregate If recipient is If recipient is non-resident If recipient is non-

payment or credit non-resident …‘Ǧ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ȁϐ‹” domestic company
subject to TDS Individual/HUF/
†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ AOP/BOI/
year 2021-22 ”–‹ϐ‹…‹ƒŽ
juridical person
•ǤͻͶ More than More •Ǥͷ More •Ǥͷ More More
lakh or •ǤͻͶ –Šƒ•Ǥͷ crore or –Šƒ•Ǥ crore or –Šƒ•Ǥ –Šƒ•Ǥ
less lakh but crore less 1 crore less 1 crore 10 Crore
but not
not more more
–Šƒ•Ǥͷ –Šƒ•Ǥ
crore 10 crore

—”…Šƒ”‰‡”ƒ–‡ ǣ‹Ž ǣͳͲΨ ǣͳͷΨ ǣ‹Ž ǣͳʹΨ ǣ‹Ž ǣʹΨ ǣͷΨ

ƒ–—”‡‘ˆ’ƒ›‡–ȋ‹…Ž—•‹˜‡‘ˆǣ”ƒ–‡ƒ•ƒ’’Ž‹…ƒ„Ž‡ǡǣͺάȌ

Section 192 ‘”ƒŽ Ǧ Ǧ Ǧ Ǧ Ǧ Ǧ Ǧ

ƒ›‡–‘ˆ•ƒŽƒ”› ƒš ƒ–‡
’Ž—•ǡ
ƒ†

Section 192A ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ Ǧ Ǧ Ǧ Ǧ Ǧ
ƒ›‡–‘ˆ–ƒšƒ„Ž‡
ƒ……——Žƒ–‡†„ƒŽƒ…‡
‘ˆ’”‘˜‹†‡–ˆ—†
530 Lesson 9 Ȉ EP-TL

Section 194B ͵ͳǤʹͲΨ ͵ͶǤ͵ʹΨ ͵ͷǤͺͺΨ ͵ͳǤʹͲΨ ͵ͶǤͻͶΨ ͵ͳǤʹͲΨ ͵ͳǤͺʹΨ ͵ʹǤ͹͸Ψ
‹‹‰ ˆ”‘ Ž‘––‡”›
‘” …”‘••™‘”† ’—œœŽ‡
‘”…ƒ”†‰ƒ‡‘”‘–Š‡”
‰ƒ‡‘ˆƒ›•‘”–
Section 194BB- Win- 31.20% 34.32% 35.88% 31.20% 34.94% 31.20% 31.82% 32.76%
ning from horse races

Section 194E ʹͲǤͺΨ ʹʹǤͺͺΨ ʹ͵ǤͻʹΨ ʹͲǤͺͲΨ ʹ͵ǤʹͻΨ ʹͲǤͺͲΨ ʹͳǤʹͳΨ ʹͳǤͺͶΨ
ƒ›‡––‘ƒ‘Ǧ
”‡•‹†‡–ˆ‘”‡‹‰
…‹–‹œ‡•’‘”–•ƒȀ
‡–‡”–ƒ‹‡”‘”
‘Ǧ”‡•‹†‡–•’‘”–•
ƒ••‘…‹ƒ–‹‘
Section 194EE ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ     
ƒ›‡–‹”‡•’‡…– ‘ˆ
†‡’‘•‹–• —†‡”
ƒ–‹‘ƒŽƒ˜‹‰
…Š‡‡ǡͳͻͺ͹
Section 194F ʹͲǤͺͲΨ ʹʹǤͺͺΨ ʹ͵ǤͻʹΨ     
‡Ǧ’—”…Šƒ•‡‘ˆ—‹–•
‘ˆ  ‘”
Section 194G ͷǤʹͲΨ ͷǤ͹ʹΨ ͷǤͻͺΨ ͷǤʹͲΨ ͷǤͺʹΨ ͷǤʹͲΨ ͷǤ͵ͲΨ ͷǤͶ͸Ψ
‘‹••‹‘ ‘ •ƒŽ‡
‘ˆŽ‘––‡”›–‹…‡–•
Section 194LBǦ ͷǤʹͲΨ ͷǤ͹ʹΨ ͷǤͻͺΨ ͷǤʹͲΨ ͷǤͺʹΨ ͷǤʹͲΨ ͷǤ͵ͲΨ ͷǤͶ͸Ψ
ƒ›‡–Ȁ…”‡†‹–„›
™ƒ›‘ˆ‹–‡”‡•–„›
‹ˆ”ƒ•–”—…–—”‡†‡„–
ˆ—†
Section 194LBA (2) ͷǤʹͲΨ ͷǤ͹ʹΨ ͷǤͻͺΨ ͷǤʹͲΨ ͷǤͺʹΨ ͷǤʹͲΨ ͷǤ͵ͲΨ ͷǤͶ͸Ψ
ƒ›‡–‘ˆ–Š‡ ƒ–—”‡
”‡ˆ‡””‡† –‘ ‹ ‡…–‹‘
ͳͲȋʹ͵ Ȍȏ‘”ȋ™‹–Š
‡ˆˆ‡…–ˆ”‘ —‡ͳǡ
ʹͲͳ͸Ȍsection
10(23FC(a)] by
„—•‹‡••–”—•––‘—‹–
Š‘Ž†‡”•
Section 194LBA(3) ͵ͳǤʹͲΨ ͵ͶǤ͵ʹΨ ͵ͷǤͺͺΨ ͵ͳǤʹͲΨ ͵ͶǤͻͶΨ ͶͳǤ͸ͲΨ ͶʹǤͶ͵Ψ Ͷ͵Ǥ͸ͺΨ
ƒ›‡– ‘ˆ –Š‡
ƒ–—”‡”‡ˆ‡””‡†–‘‹
•‡…–‹‘ͳͲȋʹ͵ Ȍ„›
„—•‹‡•• –”—•– –‘
—‹– Š‘Ž†‡”•
Section 194LBB ͵ͳǤʹͲΨ ͵ͶǤ͵ʹΨ ͵ͷǤͺͺΨ ͵ͳǤʹͲΨ ͵ͶǤͻͶΨ ͶͳǤ͸ͲΨ ͶʹǤͶ͵Ψ Ͷ͵Ǥ͸ͺΨ
ƒ›‡–‹”‡•’‡…– ‘ˆ
—‹–• ‘ˆ ‹˜‡•–‡–
ˆ—† •’‡…‹ϐ‹‡† ‹ ‡…Ǥ
ͳͳͷ
Lesson 9 Ȉ Procedural Compliance 531

Section 194LBC(2)Ǧ ͵ͳǤʹͲΨ ͵ͶǤ͵ʹΨ ͵ͷǤͺͺΨ ͵ͳǤʹͲΨ ͵ͶǤͻͶΨ ͶͳǤ͸ͲΨ ͶʹǤͶ͵Ψ Ͷ͵Ǥ͸ͺΨ
ƒ›‡–‹”‡•’‡…–‘ˆ
ƒ‹˜‡•–‡–‹ƒ
•‡…—”‹–‹•ƒ–‹‘–”—•–
•’‡…‹ϐ‹‡†‹…Žƒ—•‡ȋ†Ȍ
‘ˆ–Š‡š’Žƒƒ–‹‘
‘……—””‹‰ƒˆ–‡”•‡…–‹‘
ͳͳͷȋ™‹–Š‡ˆˆ‡…–
ˆ”‘ —‡ͳǡʹͲͳ͸Ȍ

Section 194LCǦ ͷǤʹͲΨ ͷǤ͹ʹΨ ͷǤͻͺΨ ͷǤʹͲΨ ͷǤͺʹΨ ͷǤʹͲΨ ͷǤ͵ͲΨ ͷǤͶ͸Ψ
ƒ›‡–Ȁ…”‡†‹–‘ˆ
‹–‡”‡•– „› ƒ †‹ƒ
•’‡…‹ϐ‹‡†…‘’ƒ›‘
ˆ‘”‡‹‰…—””‡…›
ƒ’’”‘˜‡† Ž‘ƒȀŽ‘‰Ǧ
–‡”‹ˆ”ƒ•–”—…–—”‡
„‘†• ȋ™‹–Š ‡ˆˆ‡…–
ˆ”‘…–‘„‡”ͳǡʹͲͳͶǡ
ƒ›„‘†Ȍˆ”‘
‘—–•‹†‡†‹ƒ

Section 194LDǦ ͷǤʹͲΨ ͷǤ͹ʹΨ ͷǤͻͺΨ ͷǤʹͲΨ ͷǤͺʹΨ ͷǤʹͲΨ ͷǤ͵ͲΨ ͷǤͶ͸Ψ
–‡”‡•–‘ƒ”—’‡‡
†‡‘‹ƒ–‡†„‘†‘ˆ
ƒ†‹ƒ…‘’ƒ›‘”

‘˜‡”‡–•‡…—”‹–›
ȋˆ”‘ —‡ͳǡʹͲͳ͵Ȍ

Section 195 Ǧ
ƒ›‡–Ȁ…”‡†‹–‘ˆ
‘–Š‡”•—–‘ƒ
‘Ǧ”‡•‹†‡–ǣ

ƒȌ…‘‡‘ˆˆ‘”‡‹‰ ʹͲǤͺͲΨ ʹʹǤͺͺΨ ʹ͵ǤͻʹΨ     

‡š…Šƒ‰‡ƒ••‡–•
’ƒ›ƒ„Ž‡–‘ƒ†‹ƒ
…‹–‹œ‡

„Ȍ‹…‘‡„›™ƒ›‘ˆ ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͳͲǤͶͲΨ ͳͲǤ͸ͲΨ ͳͲǤͻʹΨ

Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ
‰ƒ‹•”‡ˆ‡””‡†–‘‹
•‡…–‹‘ͳͳͷ‘”
•‡…–‹‘ͳͳʹȋͳȌȋ…Ȍȋ‹‹‹Ȍ

…Ȍ•Š‘”–Ǧ–‡”…ƒ’‹–ƒŽ ͳͷǤ͸ͲΨ ͳ͹Ǥͳ͸Ψ ͳ͹ǤͻͶΨ ͳͷǤ͸ͲΨ ͳ͹ǤͶ͹Ψ ͳͷǤ͸ͲΨ ͳͷǤͻͳΨ ͳ͸Ǥ͵ͺΨ

‰ƒ‹•—†‡”•‡…–‹‘
ͳͳͳ

†Ȍƒ›‘–Š‡”Ž‘‰Ǧ ʹͲǤͺͲΨ ʹʹǤͺͺΨ ʹ͵ǤͻʹΨ ʹͲǤͺͲΨ ʹ͵ǤʹͻΨ ʹͲǤͺͲΨ ʹͳǤʹͳΨ ʹͳǤͺͶΨ

–‡”…ƒ’‹–ƒŽ‰ƒ‹•
ȏ‘–„‡‹‰…‘˜‡”‡†„›
•‡…–‹‘ͳͲȋ͵͵Ȍǡ
ͳͲȋ͵͸ȌȐ
532 Lesson 9 Ȉ EP-TL

‡Ȍ‹…‘‡„›™ƒ›‘ˆ ʹͲǤͺͲΨ ʹʹǤͺͺΨ ʹ͵ǤͻʹΨ ʹͲǤͺͲΨ ʹ͵ǤʹͻΨ ʹͲǤͺͲΨ ʹͳǤʹͳΨ ʹͳǤͺͶΨ

‹–‡”‡•–’ƒ›ƒ„Ž‡„›

‘˜‡”‡–Ȁ†‹ƒ
…‘…‡”‘‘‡›
„‘””‘™‡†‘”†‡„–
‹…—””‡†„›

‘˜‡”‡–‘”†‹ƒ
…‘…‡”‹ˆ‘”‡‹‰
…—””‡…›‘–„‡‹‰
‹–‡”‡•–”‡ˆ‡””‡†–‘‹
•‡…–‹‘ͳͻͶ‘”
‡…–‹‘ͳͻͶ
ˆȌ”‘›ƒŽ–›ȏ•‡‡‘–‡ͷȐ ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͳͲǤͶͲΨ ͳͲǤ͸ͲΨ ͳͲǤͻʹΨ

‰Ȍ”‘›ƒŽ–›ȏ‘–„‡‹‰
”‘›ƒŽ–›‘ˆ–Š‡ƒ–—”‡
”‡ˆ‡””‡†–‘‹ȋˆȌ
•—’”ƒȐȏ•‡‡‘–‡͸ȐȂ
Ȉ™Š‡”‡–Š‡ ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͷʹǤͲͲΨ ͷ͵ǤͲͶΨ ͷͶǤ͸Ψ
ƒ‰”‡‡‡–‹•ƒ†‡
ƒˆ–‡”ƒ”…Š͵ͳǡͳͻ͸ͳ
„—–„‡ˆ‘”‡’”‹Žͳǡ
ͳͻ͹͸
™Š‡”‡–Š‡ƒ‰”‡‡‡– ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͳͲǤͶͲΨ ͳͲǤ͸ͲΨ ͳͲǤͻʹΨ
‹•ƒ†‡‘‘”ƒˆ–‡”
’”‹Žͳǡͳͻ͹͸

ŠȌˆ‡‡•ˆ‘”–‡…Š‹…ƒŽ
•‡”˜‹…‡•ȏ•‡‡‘–‡͹ȐȂ
™Š‡”‡–Š‡ƒ‰”‡‡‡– ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͷʹǤͲͲΨ ͷ͵ǤͲͶΨ ͷͶǤ͸Ψ
‹•ƒ†‡ƒˆ–‡” ‡„”—ƒ”›
ʹͻǡͳͻ͸Ͷ „—– „‡ˆ‘”‡
’”‹Žͳǡͳͻ͹͸
‹Ȍƒ›‘–Š‡”‹…‘‡ ͵ͳǤʹͲΨ ͵ͶǤ͵ʹΨ ͵ͷǤͺͺΨ ͵ͳǤʹͲΨ ͵ͶǤͻͶΨ ͶͳǤ͸ͲΨ ͶʹǤͶ͵Ψ Ͷ͵Ǥ͸ͺΨ

Section 196B ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͳͲǤͶͲΨ ͳͲǤ͸ͲΨ ͳͲǤͻʹΨ
Ǧƒ›‡–Ȁ…”‡†‹–‘ˆ
‹…‘‡ ˆ”‘ —‹–•
ȋ‹…Ž—†‹‰ Ž‘‰Ǧ–‡”
…ƒ’‹–ƒŽ‰ƒ‹•‘
–”ƒ•ˆ‡”‘ˆ•—…Š—‹–•Ȍ
–‘ƒ‘ˆˆ•Š‘”‡ˆ—†
Section 196C Ǧ ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͳͲǤͶͲΨ ͳͲǤ͸ͲΨ ͳͲǤͻʹΨ
ƒ›‡–Ȁ…”‡†‹–‘ˆ
‹–‡”‡•– ‘ˆ ˆ‘”‡‹‰
…—””‡…›„‘†•‘”

 ȋ‹…Ž—†‹‰
Ž‘‰Ǧ–‡”…ƒ’‹–ƒŽ
‰ƒ‹• ‘ –”ƒ•ˆ‡” ‘ˆ
•—…Š „‘†•Ȍ ȋ‘–
„‡‹‰ †‹˜‹†‡†
”‡ˆ‡””‡†‹ •‡…–‹‘
ͳͳͷǦȌ
 Lesson 9 Ȉ Procedural Compliance 533

Section 196D Ǧ ͳͲǤͶͲΨ ͳͳǤͶͶΨ ͳͳǤͻ͸Ψ ͳͲǤͶͲΨ ͳͳǤ͸ͶΨ ͳͲǤͶͲΨ ͳͲǤ͸ͲΨ ͳͲǤͻʹΨ
ƒ›‡–Ȁ…”‡†‹–‘ˆ
‹…‘‡ˆ”‘•‡…—”‹–‹‡•
ȋ‘– „‡‹‰ †‹˜‹†‡†ǡ
•Š‘”–Ǧ–‡”‘”Ž‘‰Ǧ
–‡” …ƒ’‹–ƒŽ‰ƒ‹Ȍ–‘
‘”‡‹‰ •–‹–—–‹‘ƒŽ
˜‡•–‘”•

Notes :
ͳȌ †‡”•‡…–‹‘•ͳͻʹ–ƒš‹•†‡†—…–‹„Ž‡ˆ”‘•ƒŽƒ”›ǤŠ‡’ƒ›‡”•ŠƒŽŽ…ƒŽ…—Žƒ–‡•ƒŽƒ”›–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ
”‡…‹’‹‡–ǤŠ‡ƒ‘—–•‘†‡–‡”‹‡†‹••—„Œ‡…––‘–ƒš†‡†—…–‹‘—†‡”•‡…–‹‘•ͳͻʹǤ†‡”•‡…–‹‘•ͳͻʹǡ
–ƒš‹•†‡†—…–‹„Ž‡‘–ƒšƒ„Ž‡ƒ……——Žƒ–‡†„ƒŽƒ…‡‘ˆ’”‘˜‹†‡–ˆ—†Ǥ†‡”•‡…–‹‘ͳͻͷǡ–ƒš‹•†‡†—…–‹„Ž‡
‘Ž›‹ˆ‹…‘‡‹•–ƒšƒ„Ž‡‹–Š‡Šƒ†•‘ˆ”‡…‹’‹‡–‹†‹ƒǤƒ›‘–Š‡”…ƒ•‡ǡ‰”‘••’ƒ›‡–‹••—„Œ‡…––‘
–ƒš†‡†—…–‹‘Ǥ
ʹȌ ƒ–‡‰‘”›ǡ–ƒš‹•†‡†—…–‹„Ž‡ƒ––Š‡ƒ„‘˜‡”ƒ–‡•‘”–Š‡”ƒ–‡••’‡…‹ϐ‹‡†‹‘—„Ž‡ƒšƒ–‹‘˜‘‹†ƒ…‡
‰”‡‡‡–• ‡–‡”‡† ‹–‘ „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– —†‡” •‡…–‹‘ ͻͲ ȋ™Š‹…Š‡˜‡” ‹• Ž‘™‡”Ȍ ȏ•‡…–‹‘
ʹȋ͵͹Ȍȋ‹‹‹ȌȐǤ
͵Ȍ ƒš‹•‘–†‡†—…–‹„Ž‡—†‡”•‡…–‹‘ͳͻʹǡ•‡…–‹‘ͳͻ͵ǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶǦǡ‘”ͳͻͶ‹ˆ–Š‡
”‡…‹’‹‡–ƒ‡•ƒ†‡…Žƒ”ƒ–‹‘‹ ‘”‘Ǥͳͷ
Ȁͳͷ—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͻ͹Ǥ
ͶȌ †‡”•‡…–‹‘ͳͻ͹–Š‡”‡…‹’‹‡–…ƒƒ’’Ž›–‘–Š‡••‡••‹‰ˆϐ‹…‡”‹ ‘”‘Ǥͳ͵–‘‰‡–ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ
Ž‘™‡”Ȁ‘–ƒš†‡†—…–‹‘ǤŠ‹•„‡‡ϐ‹–‹•ǡŠ‘™‡˜‡”ǡ‘–ƒ˜ƒ‹Žƒ„Ž‡‹ˆ–ƒš‹•†‡†—…–‹„Ž‡—†‡”•‡…–‹‘ͳͻʹǡ
•‡…–‹‘ͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶ ǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻ͸ǡͳͻ͸‘”ͳͻ͸Ǥ
ͷȌ ‘›ƒŽ–›’ƒ›ƒ„Ž‡„›
‘˜‡”‡–‘”ƒ†‹ƒ…‘…‡”‹’—”•—ƒ…‡‘ˆƒƒ‰”‡‡‡–ƒ†‡„›‘Ǧ”‡•‹†‡–
™‹–Š–Š‡
‘˜‡”‡–‘”–Š‡†‹ƒ…‘…‡”ƒˆ–‡”ƒ”…Š͵ͳǡͳͻ͹͸ǡ™Š‡”‡•—…Š”‘›ƒŽ–›‹•‹…‘•‹†‡”ƒ–‹‘
ˆ‘”–Š‡–”ƒ•ˆ‡”‘ˆƒŽŽ‘”ƒ›”‹‰Š–•ȋ‹…Ž—†‹‰–Š‡‰”ƒ–‹‰‘ˆƒŽ‹…‡…‡Ȍ‹”‡•’‡…–‘ˆ…‘’›”‹‰Š–‹ƒ›
„‘‘ ‘ ƒ •—„Œ‡…– ”‡ˆ‡””‡† –‘ ‹ –Š‡ ˆ‹”•– ’”‘˜‹•‘ –‘ •‡…–‹‘ ͳͳͷȋͳȌ –‘ –Š‡ †‹ƒ …‘…‡” ‘” ‹
”‡•’‡…– ‘ˆ …‘’—–‡” •‘ˆ–™ƒ”‡ ”‡ˆ‡””‡† –‘ ‹ –Š‡ •‡…‘† ’”‘˜‹•‘ –‘ •‡…–‹‘ ͳͳͷȋͳȌǡ –‘ ƒ ’‡”•‘
”‡•‹†‡–‹†‹ƒǤ
͸Ǥ ‘– „‡‹‰ ”‘›ƒŽ–› ‘ˆ –Š‡ ƒ–—”‡ ”‡ˆ‡””‡† –‘ ƒ„‘˜‡ǡ ’ƒ›ƒ„Ž‡ „›
‘˜‡”‡– ‘” ƒ †‹ƒ …‘…‡” ‹
’—”•—ƒ…‡‘ˆƒƒ‰”‡‡‡–ƒ†‡„›‘Ǧ”‡•‹†‡–™‹–Š–Š‡
‘˜‡”‡–‘”–Š‡†‹ƒ…‘…‡”ƒ†™Š‡”‡
•—…Šƒ‰”‡‡‡–‹•™‹–Šƒ†‹ƒ…‘…‡”ǡ–Š‡ƒ‰”‡‡‡–‹•ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”™Š‡”‡
‹–”‡Žƒ–‡•–‘ƒ––‡”‹…Ž—†‡†‹–Š‡‹†—•–”‹ƒŽ’‘Ž‹…›ǡ–Š‡ƒ‰”‡‡‡–‹•‹ƒ……‘”†ƒ…‡™‹–Š–Šƒ–’‘Ž‹…›Ǥ
͹Ǥ ‡‡•ˆ‘”–‡…Š‹…ƒŽ•‡”˜‹…‡•’ƒ›ƒ„Ž‡„›
‘˜‡”‡–‘”ƒ†‹ƒ…‘…‡”‹’—”•—ƒ…‡‘ˆƒƒ‰”‡‡‡–
ƒ†‡„›‘Ǧ”‡•‹†‡–™‹–Š–Š‡
‘˜‡”‡–‘”–Š‡†‹ƒ…‘…‡”ƒ†™Š‡”‡•—…Šƒ‰”‡‡‡–‹•™‹–Š
ƒ†‹ƒ…‘…‡”ǡ–Š‡ƒ‰”‡‡‡–‹•ƒ’’”‘˜‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”™Š‡”‡‹–”‡Žƒ–‡•–‘ƒ––‡”
‹…Ž—†‡†‹–Š‡‹†—•–”‹ƒŽ’‘Ž‹…›ǡ–Š‡ƒ‰”‡‡‡–‹•‹ƒ……‘”†ƒ…‡™‹–Š–Šƒ–’‘Ž‹…›Ǥ

MINIMUM THRESHOLD LIMIT UPTO WHICH TDS NOT APPLICABLE

”Ǥ
Particular Section Threshold limit
‘Ǥ
ͳǤ ‘ †‡†—…–‹‘ ‘ˆ –ƒš ƒ– •‘—”…‡ ˆ”‘ ͳͻʹ ˆ‡––ƒšƒ„Ž‡‹…‘‡‹•Ž‡••–Šƒƒš‹—ƒ‘—–
•ƒŽƒ”‹‡• ™Š‹…Š ‹• ‘– …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ȋ•Ǥ ʹǡͷͲǡͲͲͲ ˆ‘” ƒ
‹†‹˜‹†—ƒŽǡ •Ǥ ͵ǡͲͲǡͲͲͲ ˆ‘” ‡‹‘” ‹–‹œ‡• ƒ† •Ǥ
ͷǡͲͲǡͲͲͲ ˆ‘” —’‡” ‡‹‘” ‹–‹œ‡•Ȍ ” ƒ• ’‡” ‡™
ƒš ‡‰‹‡ Žƒ„ ƒ–‡ ‹ˆ –Š‡ ƒ••‡••‡‡ Šƒ• ‘’–‡† ˆ‘”
‡…–‹‘ͳͳͷ
534 Lesson 9 Ȉ EP-TL

ͳǤ ‘ˆ”‘’ƒ›‡–‘ˆ’”‘˜‹†‡–ˆ—† ͳͻʹ ˆƒ‘—–’ƒ‹†‹•Ž‡••–Šƒ•ǤͷͲǡͲͲͲ

ƒ……‘—–‘ˆƒ‡’Ž‘›‡‡
ʹǤ ‘  ˆ”‘ ‹–‡”‡•– ’ƒ‹† ‘ ͳͻ͵ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
†‡„‡–—”‡•‹••—‡†„›ƒ…‘’ƒ› ‹ †‘‡•‘–‡š…‡‡†•ǤͷǡͲͲͲ
™Š‹…Š ’—„Ž‹… ƒ”‡ •—„•–ƒ–‹ƒŽŽ›
‹–‡”‡•–‡†Ǥ ”‘˜‹†‡† ‹–‡”‡•– ‹• ’ƒ‹†
„› ƒ……‘—– ’ƒ›‡‡ …Š‡“—‡ –‘ ”‡•‹†‡–
‹†‹˜‹†—ƒŽ‘”

͵Ǥ ‘  ˆ”‘ ‹–‡”‡•– ‘ ͺΨ ƒ˜‹‰ ͳͻ͵ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ȋƒšƒ„Ž‡Ȍ‘†•ʹͲͲ͵’ƒ‹†–‘ƒ †‘‡•‘–‡š…‡‡†•ǤͳͲǡͲͲͲ
”‡•‹†‡–’‡”•‘•

͵Ǥ ‘  ˆ”‘ ‹–‡”‡•– ‘ ͸ǤͷΨ

‘Ž† ͳͻ͵ ˆƒ†‡…Žƒ”ƒ–‹‘‹•ƒ†‡–Šƒ––Š‡‘‹ƒŽ˜ƒŽ—‡‘ˆ
„‘†•ǡ ͳͻ͹͹ ‘” ͹Ψ
‘Ž† „‘†•ǡ ͳͻͺͲ •—…Š„‘†•†‹†‘–‡š…‡‡†•ǤͳͲǡͲͲͲƒ–ƒ›–‹‡
’ƒ‹†–‘”‡•‹†‡–‹†‹˜‹†—ƒŽ †—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”

ͶǤ ‘ˆ”‘†‹˜‹†‡†’ƒ‹†„›ƒ……‘—– ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

’ƒ›‡‡…Š‡“—‡–‘”‡•‹†‡–’‡”•‘• †‘‡•‘–‡š…‡‡†•ǤͷǡͲͲͲ

ͷǤ ‘  ˆ”‘ ‹–‡”‡•– ‘–Š‡” –Šƒ ‘ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

•‡…—”‹–‹‡•’ƒ‹†„›ƒ„ƒ‹‰…‘’ƒ› †‘‡•‘–‡š…‡‡†•ǤͶͲǡͲͲͲǤ•ǤͷͲǡͲͲͲ‹…ƒ•‡‘ˆ
‘”…‘Ǧ‘’‡”ƒ–‹˜‡„ƒ‘–‹‡†‡’‘•‹–• ‡‹‘”‹–‹œ‡Ǥ

͸Ǥ ‘ ˆ”‘ ‹–‡”‡•– ‘ †‡’‘•‹– ™‹–Š ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ƒ’‘•–‘ˆϐ‹…‡—†‡”‡‹‘”‹–‹œ‡• †‘‡•‘–‡š…‡‡†•ǤͷͲǡͲͲͲ
ƒ˜‹‰…Š‡‡—Ž‡•ǡʹͲͲͶ

͹Ǥ ‘  ˆ”‘ ‹–‡”‡•– ‘–Š‡” –Šƒ ‘ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

•‡…—”‹–‹‡•ȋ‹ƒ›‘–Š‡”…ƒ•‡Ȍ †‘‡•‘–‡š…‡‡†•ǤͷǡͲͲͲ

ͺǤ ‘ˆ”‘‹–‡”‡•–‘…‘’‡•ƒ–‹‘ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ƒ™ƒ”†‡†„›‘–‘”……‹†‡–Žƒ‹• †‘‡•‘–‡š…‡‡†•ǤͷͲǡͲͲͲ
”‹„—ƒŽ
ͻǤ ‘ ˆ”‘‘––‡”›Ȁ”‘••‘”† ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
—œœŽ‡• †‘‡•‘–‡š…‡‡†•ǤͳͲǡͲͲͲ

ͳͲǤ ‘ˆ”‘™‹‹‰•ˆ”‘Š‘”•‡ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

”ƒ…‡• †‘‡•‘–‡š…‡‡†•ǤͳͲǡͲͲͲ
ͳͳǤ ‘ ˆ”‘ •— ’ƒ‹†‘” ’ƒ›ƒ„Ž‡ –‘ ͳͻͶ ˆ•—’ƒ‹†‘”’ƒ›ƒ„Ž‡–‘ƒ…‘–”ƒ…–‘”‹ƒ•‹‰Ž‡
…‘–”ƒ…–‘” ’ƒ›‡–†‘‡•‘–‡š…‡‡†•Ǥ͵ͲǡͲͲͲ
ˆ•—’ƒ‹†‘”’ƒ›ƒ„Ž‡–‘…‘–”ƒ…–‘”‹ƒ‰‰”‡‰ƒ–‡ †‘‡•
‘–‡š…‡‡†•ǤͳǡͲͲǡͲͲͲ†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ͳʹǤ ‘  ˆ”‘ ‹•—”ƒ…‡ …‘‹••‹‘ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ” †‘‡•‘–‡š…‡‡†•ǤͳͷǡͲͲͲ
ͳʹ ‘  ˆ”‘ •— ’ƒ›ƒ„Ž‡ —†‡” ƒ Ž‹ˆ‡ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
‹•—”ƒ…‡ƒ’‘Ž‹…‡ȋ‹…Ž—†‹‰„‘—•Ȍ–‘ƒ †‘‡•‘–‡š…‡‡†•ǤͳŽƒŠ
”‡•‹†‡–’‡”•‘
Lesson 9 Ȉ Procedural Compliance 535

ͳ͵Ǥ ‘  ˆ”‘ ’ƒ›‡–• ƒ†‡ ‘—– ‘ˆ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
†‡’‘•‹–•—†‡” †‘‡•‘–‡š…‡‡†•ǤʹǡͷͲͲ

ͳͶǤ ‘ˆ”‘…‘‹••‹‘’ƒ‹†‘ ͳͻͶ

ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
Ž‘––‡”›–‹…‡–• †‘‡•‘–‡š…‡‡†•ǤͳͷǡͲͲͲ

ͳͷǤ ‘  ˆ”‘ ’ƒ›‡– ‘ˆ …‘‹••‹‘ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

‘”„”‘‡”ƒ‰‡ †‘‡• ‘– ‡š…‡‡† •Ǥ ͳͷǡͲͲͲǤ —”–Š‡” ‘ –ƒš –‘ „‡
†‡†—…–‡† ˆ”‘ …‘‹••‹‘ ’ƒ›ƒ„Ž‡ „› Ȁ
–‘–Š‡‹” ”ƒ…Š‹•‡‡•Ǥ
ͳ͸Ǥ ‘  ˆ”‘ ’ƒ›‡– ‘ˆ ”‡– ‹ ͳͻͶǦ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
”‡•’‡…–‘ˆŽƒ† Ƭ„—‹Ž†‹‰ǡˆ—”‹–—”‡ ‘” †‘‡•‘–‡š…‡‡†•ǤʹǡͶͲǡͲͲͲ
ϐ‹––‹‰•‘”’Žƒ–ƒ†ƒ…Š‹‡”›

ͳ͹Ǥ ‘ˆ”‘’ƒ›‡–‘ˆ…‘•‹†‡”ƒ–‹‘ ͳͻͶǦ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ˆ‘”’—”…Šƒ•‡‘ˆƒ‹‘˜ƒ„Ž‡’”‘’‡”–› †‘‡•‘–‡š…‡‡†•ǤͷͲƒŠ•
ȋ‘–Š‡”–Šƒƒ‰”‹…—Ž–—”‡Žƒ†Ȍ

ͳ͹Ǥ ‘‘’ƒ›‡–‘ˆ”‡–‘ˆƒ›Žƒ† ͳͻͶǦ ˆƒ‘—–‘ˆ”‡–†‘‡•‘–‡š…‡‡†•ǤͷͲǡͲͲͲˆ‘”ƒ

‘” „—‹Ž†‹‰ ‘” „‘–Š „› ƒ ‹†‹˜‹†—ƒŽȀ ‘–Š‘”’ƒ”–‘ˆƒ‘–ŠǤ
 ȏ™Š‘•‡„‘‘•‘ˆƒ……‘—–ƒ”‡‘–
”‡“—‹”‡† –‘ „‡ ƒ—†‹–‡† —†‡” •‡…–‹‘
ͶͶȐ–‘”‡•‹†‡–’‡”•‘Ǥ

ͳͺǤ ‘ˆ”‘’ƒ›‡–‘ˆ’”‘ˆ‡••‹‘ƒŽ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”

ˆ‡‡•ǡ –‡…Š‹…ƒŽ ˆ‡‡•ǡ ”‘›ƒŽ–› ƒ† †‘‡•‘–‡š…‡‡†•Ǥ͵ͲǡͲͲͲ
†‹”‡…–‘”•ǯ”‡—‡”ƒ–‹‘
ͳͻ ‘ˆ‘”‹…‘‡‘—‹–•‘–Š‡”–Šƒ ͳͻͶ ˆ•—…Š‹…‘‡†‘‡•‘–‡š…‡‡†•ǤͷǡͲͲͲ
…ƒ’‹–ƒŽ‰ƒ‹
ʹͲǤ ‘ˆ”‘’ƒ›‡–‘ˆ…‘’‡•ƒ–‹‘ ͳͻͶ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
‘…‘’—Ž•‘”›ƒ…“—‹•‹–‹‘‘ˆ †‘‡•‘–‡š…‡‡†•ǤʹǡͷͲǡͲͲͲ
‹‘˜ƒ„Ž‡ ’”‘’‡”–› ȋ‘–Š‡” –Šƒ
‰”‹…—Ž–—”ƒŽƒ†Ȍ
ʹͳǤ —”‹•Š‹‰ ‘ˆ “—ƒ”–‡”Ž› ”‡–—” ‹ ʹͲ͸ ˆƒ‘—–’ƒ‹†‘”’ƒ›ƒ„Ž‡†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
”‡•’‡…– ‘ˆ ’ƒ›‡– ‘ˆ ‹–‡”‡•– ȋ‘–Š‡” †‘‡•‘–‡š…‡‡†ǣ
–Šƒ‹–‡”‡•–‘•‡…—”‹–‹‡•Ȍ–‘”‡•‹†‡–• •ǤͳͲǡͲͲͲ ™Š‡”‡ ’ƒ›‡” ‹• „ƒ‹‰ …‘’ƒ› ‘”…‘Ǧ
™‹–Š‘—–†‡†—…–‹‘‘ˆ–ƒš ‘’‡”ƒ–‹˜‡•‘…‹‡–›Ǣ
•ǤͷǡͲͲͲ‹‘–Š‡”…ƒ•‡

ʹʹǤ ƒ›‡– –‘ ‘–”ƒ…–‘” „› †‹˜‹†—ƒŽ Ȁ ͳͻͶ ˆ–Š‡’ƒ›‡–†‘‡•‘–‡š…‡‡†•ǤͷͲǡͲͲǡͲͲͲ

 ȋ‘„ƒ•‡†Ȍ
ʹ͵Ǥ ƒ•Š™‹–Š†”ƒ™ƒŽˆ”‘„ƒȀ‘•–‘ˆϐ‹…‡ ͳͻͶ ˆ …ƒ•Š ™‹–Š†”ƒ™ƒŽ ‡š…‡‡†‹‰ •Ǥ ͳ …”‘”‡ †—”‹‰
–Š‡ ’”‡˜‹‘—• ›‡ƒ” ƒ† Ž‹‹– ‘ˆ •ǤʹͲ ƒ…• ™Š‡”‡
”‡…‹’‹‡–Šƒ•‘–ϐ‹Ž‡†–Š‡”‡–—”•‘ˆ‹…‘‡ˆ‘”ƒŽŽ
‘ˆ–Š‡Žƒ•–͵ƒ••‡••‡–›‡ƒ”•
ʹͶ ƒ›‡–‘ˆ…‡”–ƒ‹•—ˆ‘”’—”…Šƒ•‡‘ˆ ͳͻͶ ƒ›‡–‘ˆ…‡”–ƒ‹•—ˆ‘”’—”…Šƒ•‡‘ˆ
‘‘†•ƒ†‡

‘‘†• „›ƒ„—›‡”–‘ƒ’‡”•‘”‡•‹†‡–‹†‹ƒ‡š…‡‡†‹‰
•ǤͷͲŽƒŠ•Ǥ
 536 Lesson 9 Ȉ EP-TL

E-TDS Return
•’‡”‡…–‹‘ʹͲ͸‘ˆ–Š‡…‘‡ƒš…–‘”’‘”ƒ–‡ƒ†
‘˜‡”‡–†‡†—…–‘”•ƒ”‡…‘’—Ž•‘”‹Ž›”‡“—‹”‡†–‘ϐ‹Ž‡
–Š‡‹””‡–—”–Š”‘—‰Š‡Ž‡…–”‘‹…‡†‹ƒǤ‘™‡˜‡”ǡˆ‘”‘–Š‡”†‡†—…–”‘•ϐ‹Ž‹‰‘ˆ‡Ǧ”‡–—”‹•‘’–‹‘ƒŽƒ†‡Ǧ
”‡–—”•Š‘—Ž†„‡ϐ‹Ž‡†—†‡”‡…–‹‘ʹͲ͸‘ˆ–Š‡…‘‡ƒš…–‹ƒ……‘”†ƒ…‡™‹–Šƒ•…Š‡‡†ƒ–‡†ʹ͸–Š—‰—•–ǡ
ʹͲͲ͵ˆ‘”‡Ž‡…–”‘‹…ϐ‹Ž‹‰‘ˆ”‡–—”˜‹†‡‹”…—Žƒ”‘Ǥͺ†ƒ–‡†ͳͻǤͲͻǤʹͲͲ͵ǤŠ‡Šƒ•ƒ’’‘‹–‡†–Š‡
‹”‡…–‘”
‡‡”ƒŽ‘ˆ…‘‡ƒšȋ›•–‡•Ȍƒ•‡Ǧϐ‹Ž‹‰ƒ†‹‹•–”ƒ–‘”ˆ‘”–Š‡’—”’‘•‡‘ˆ‡Ž‡…–”‘‹…ϐ‹Ž‹‰‘ˆ”‡–—”•‘ˆ
…Š‡‡ǡʹͲͲ͵ǤŠƒ•ƒŽ•‘ƒ’’‘‹–‡†ƒ–‹‘ƒŽ‡…—”‹–‹‡•‡’‘•‹–‘”›‹‹–‡†ȋȌƒ•‡Ǧ‹–‡”‡†‹ƒ–‘”›Ǥ
Ǧ”‡–—”…ƒ„‡ϐ‹Ž‡†ƒ–ƒ›‘ˆ–Š‡Ǧ ‘’‡‡†„›–Š‡‡Ǧ‹–‡”‡†‹ƒ–‘”›ˆ‘”–Š‹•’—”’‘•‡ǤŠ‡†—‡†ƒ–‡
ˆ‘”ϐ‹Ž‹‰“—ƒ”–‡”Ž›”‡–—”„‘–Š‡Ž‡…–”‘‹…ƒ†…‘˜‡–‹‘ƒŽˆ‘””‡ƒ‹•–Š‡•ƒ‡Ǥ

Exemption to Non-Residents from requirement of furnishing PAN U/S 206AA

”‡•‡–Ž›”‡“—‹”‡‡–‘ˆˆ—”‹•Š‹‰‘ˆƒ•’‡”‡…–‹‘ʹͲ͸‹•ƒŽ•‘ƒ’’Ž‹…ƒ„Ž‡–‘‘Ǧ”‡•‹†‡–ƒ••‡••‡‡ƒŽ•‘Ǥ
‡…–‹‘ʹͲ͸Šƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ–’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›–‘‘Ǧ”‡•‹†‡–ǡ‘–
„‡‹‰ƒ…‘’ƒ›ǡ‘”–‘ƒˆ‘”‡‹‰…‘’ƒ›ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ADVANCE TAX
Š‡…‘’—–ƒ–‹‘‘ˆƒ†˜ƒ…‡–ƒšŽ‹ƒ„‹Ž‹–›ǡ—†‡”†‹ˆˆ‡”‡–•‹–—ƒ–‹‘•ǡ‹•–‘„‡†‘‡ƒ•ˆ‘ŽŽ‘™•ǣ
‡…–‹‘ʹͲ͹Ǧʹͳͻ‘ˆ–Š‡…‘‡ƒš…–†‡ƒŽ•™‹–Š–Š‡‹••—‡•”‡Žƒ–‹‰–‘ƒ†˜ƒ…‡’ƒ›‡–‘ˆ–ƒšǤƒ†˜ƒ…‡’ƒ›‡–
‘ˆ–ƒšǡ–Š‡ƒ••‡••‡‡Šƒ•–‘’ƒ›–ƒš‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”‘‡•–‹ƒ–‡†‹…‘‡™Š‹…Š‹•–‘„‡ƒ••‡••‡†‹–Š‡•—„•‡“—‡–
ƒ••‡••‡–›‡ƒ”Ǥ–ˆ‘ŽŽ‘™•–Š‡†‘…–”‹‡‘™ƒ•’ƒ›ƒ•›‘—‡ƒ”•…Š‡‡Ǥ
–‹•‘„Ž‹‰ƒ–‘”›ˆ‘”ƒƒ••‡••‡‡–‘’ƒ›ƒ†˜ƒ…‡–ƒš™Š‡”‡–Š‡ƒ†˜ƒ…‡–ƒš’ƒ›ƒ„Ž‡‹••ǤͳͲǡͲͲͲ‘”‘”‡ȋ‡…–‹‘
ʹͲͺȌǤ
‘”†‡”–‘”‡†—…‡–Š‡…‘’Ž‹ƒ…‡„—”†‡‘•‡‹‘”…‹–‹œ‡•‡š‡’–‹‘ˆ”‘’ƒ›‡–‘ˆƒ†˜ƒ…‡–ƒš•‡…–‹‘ʹͲ͹
Šƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ–”‡•‹†‡–‹†‹˜‹†—ƒŽǦ
ȋͳȌ ‘–Šƒ˜‹‰ƒ›‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzƒ†
ȋʹȌ ‘ˆƒ‰‡͸Ͳ›‡ƒ”•‘”‘”‡‡‡†‘–’ƒ›ƒ†˜ƒ…‡–ƒšƒ†ƒ”‡ƒŽŽ‘™‡†–‘†‹•…Šƒ”‰‡–Š‡‹”–ƒšŽ‹ƒ„‹Ž‹–›ȋ‘–Š‡”
–ŠƒȌ„›’ƒ›‡–‘ˆ•‡ŽˆǦƒ••‡••‡––ƒšǤ
 Lesson 9 Ȉ Procedural Compliance 537

Due Dates for Payment of Advance Tax

Particulars In case of all assessee

‘”„‡ˆ‘”‡ —‡ͳͷ‘ˆ–Š‡”‡˜‹‘—•›‡ƒ” ’–‘ͳͷΨ‘ˆ–Š‡†˜ƒ…‡ƒš†—‡

‘”„‡ˆ‘”‡‡’–‡„‡”ͳͷ‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
‘”„‡ˆ‘”‡‡…‡„‡”ͳͷ‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
‘”„‡ˆ‘”‡ƒ”…Šͳͷ‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”
’–‘ ͶͷΨ ‘ˆ –Š‡ †˜ƒ…‡ ƒš †—‡ ƒ• ”‡†—…‡† „›
ƒ‘—–’ƒ‹†‹‡ƒ”Ž‹‡”‹•–ƒŽ‡–•
’–‘ ͹ͷΨ ‘ˆ –Š‡ †˜ƒ…‡ ƒš †—‡ ƒ• ”‡†—…‡† „›
ƒ‘—–’ƒ‹†‹‡ƒ”Ž‹‡”‹•–ƒŽ‡–•
’–‘ ͳͲͲΨ ‘ˆ –Š‡ †˜ƒ…‡ ƒš †—‡ ƒ• ”‡†—…‡† „›
ƒ‘—–’ƒ‹†‹‡ƒ”Ž‹‡”‹•–ƒŽ‡–•

›’ƒ›‡–‘ˆƒ†˜ƒ…‡–ƒš’ƒ›ƒ„Ž‡ƒ†‡„‡ˆ‘”‡ƒ”…Š͵ͳ•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ†˜ƒ…‡–ƒš’ƒ‹††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
Amendment to section 211 :  ƒ••‡••‡‡ ȋ™Š‘ †‡…Žƒ”‡• Š‹• ‹…‘‡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š ’”‡•—’–‹˜‡ –ƒšƒ–‹‘
”‡‰‹‡—†‡”•‡…–‹‘ͶͶȌ•ŠƒŽŽƒŽ•‘„‡Ž‹ƒ„Ž‡–‘’ƒ›ƒ†˜ƒ…‡–ƒš‹‘‡‹•–ƒŽ‡–‘‘”„‡ˆ‘”‡ƒ”…Šͳͷ‘ˆ–Š‡
ϐ‹ƒ…‹ƒŽ‡ƒ”Ǥ
Note : Š‡ƒ„‘˜‡’”‘˜‹•‹‘ƒŽ•‘ƒ’’Ž‹‡•ˆ‘”ƒ†˜ƒ…‡–ƒš‹”‡•’‡…–‘ˆ’”‡•—’–‹˜‡‹…‘‡—Ȁ•ͶͶ
…ƒ•‡‘ˆ’—„Ž‹…Š‘Ž‹†ƒ›‘”„ƒŠ‘Ž‹†ƒ›ǡ†ƒ–‡‘ˆ’ƒ›‡–ƒ—–‘ƒ–‹…ƒŽŽ›ˆƒŽŽ•‹–Š‡‡š–™‘”‹‰†ƒ›ƒ†ˆ‘”–Šƒ–
†‡Žƒ›ǡ‹–‡”‡•–‹•‘–…Šƒ”‰‡†—†‡”‡…–‹‘•ʹ͵Ͷƒ†ʹ͵Ͷ
ƒš–‘„‡…‘’—–‡†ƒ––Š‡’”‡˜ƒ‹Ž‹‰”ƒ–‡‘–Š‡…—””‡–‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ǡ‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
Payment of advance tax in case of capital gains/casual income/ dividend income (other than
deemed dividend as per Section 2(22)(e) [Proviso to section 234C]

ȋͳȌ †˜ƒ…‡ –ƒš ‹• ’ƒ›ƒ„Ž‡ „› ƒ ƒ••‡••‡‡‘ Š‹•Ȁ‹–• –‘–ƒŽ ‹…‘‡ǡ ™Š‹…Š ‹…Ž—†‡• …ƒ’‹–ƒŽ ‰ƒ‹• ƒ† …ƒ•—ƒŽ
‹…‘‡Ž‹‡‹…‘‡ˆ”‘Ž‘––‡”‹‡•ǡ…”‘••™‘”†’—œœŽ‡•‡–…Ǥ‘”‹˜‹†‡†…‘‡ȋ†‹˜‹†‡†‹…‘‡ȋ‘–Š‡”
–Šƒ†‡‡‡††‹˜‹†‡†ƒ•’‡”‡…–‹‘ʹȋʹʹȌȋ‡ȌǤ
ȋʹȌ ‹…‡‹–‹•‘–’‘••‹„Ž‡ˆ‘”–Š‡ƒ••‡••‡‡–‘‡•–‹ƒ–‡Š‹•…ƒ’‹–ƒŽ‰ƒ‹•ǡ‹…‘‡ˆ”‘Ž‘––‡”‹‡•ǡ‡–…ǡƒ††‹˜‹†‡†
‹…‘‡ȋ‘–Š‡”–Šƒ†‡‡‡††‹˜‹†‡†ƒ•’‡”‡…–‹‘ʹȋʹʹȌȋ‡Ȍǡ‹–Šƒ•„‡‡’”‘˜‹†‡†–Šƒ–‹ˆƒ›•—…Š‹…‘‡
ƒ”‹•‡•ƒˆ–‡”–Š‡†—‡†ƒ–‡ˆ‘”ƒ›‹•–ƒŽŽ‡–ǡ–Š‡ǡ–Š‡‡–‹”‡ƒ‘—–‘ˆ–ƒš’ƒ›ƒ„Ž‡ȋƒˆ–‡”…‘•‹†‡”‹‰–ƒš
†‡†—…–‡†ƒ–•‘—”…‡Ȍ‘•—…Š…ƒ’‹–ƒŽ‰ƒ‹•‘”…ƒ•—ƒŽ‹…‘‡•Š‘—Ž†„‡’ƒ‹†‹–Š‡”‡ƒ‹‹‰‹•–ƒŽŽ‡–•
‘ˆƒ†˜ƒ…‡–ƒš™Š‹…Šƒ”‡†—‡Ǥ
ȋ͵Ȍ Š‡”‡‘•—…Š‹•–ƒŽŽ‡–‹•†—‡ǡ–Š‡‡–‹”‡–ƒš•Š‘—Ž†„‡’ƒ‹†„›͵ͳ•–ƒ”…Š‘ˆ–Š‡”‡Ž‡˜ƒ–ϐ‹ƒ…‹ƒŽ
›‡ƒ”Ǥ
ȋͶȌ ‘‹–‡”‡•–Ž‹ƒ„‹Ž‹–›—†‡”•‡…–‹‘ʹ͵Ͷ™‘—Ž†ƒ”‹•‡‹ˆ–Š‡‡–‹”‡–ƒšŽ‹ƒ„‹Ž‹–›‹••‘’ƒ‹†Ǥ

Adjustment of Advance Tax

†‡”‡…–‹‘ʹͳͻǡ–Š‡–‘–ƒŽƒ†˜ƒ…‡–ƒš’ƒ‹†„›ƒƒ••‡••‡‡‘–Š‡”–Šƒˆ‘”‹–‡”‡•–„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•––Š‡–‘–ƒŽ–ƒš
Ž‹ƒ„‹Ž‹–›…‘’—–‡†—†‡””‡‰—Žƒ”ƒ••‡••‡–Ǥ
†‡”‡…–‹‘ʹ͵Ͷ‘ˆ–Š‡…–™Š‡”‡ƒƒ••‡••‡‡ǡ™Š‘‹•Ž‹ƒ„Ž‡–‘’ƒ›ƒ†˜ƒ…‡–ƒšǡ—†‡”‡…–‹‘ʹͲͺŠƒ•ˆƒ‹Ž‡†–‘
’ƒ›•—…Š–ƒš‘”™Š‡”‡–Š‡ƒ†˜ƒ…‡–ƒš’ƒ‹†—†‡”‡…–‹‘ʹͳͲ‹•Ž‡••–ŠƒͻͲΨ‘ˆ–Š‡ƒ••‡••‡†–ƒšǡŠ‡•ŠƒŽŽ„‡Ž‹ƒ„Ž‡
–‘’ƒ›‹–‡”‡•–̷ͳΨˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆ–Š‡‘–ŠǤ
••‡••‡‡Šƒ•–‘’ƒ›ƒ†˜ƒ…‡–ƒš‡˜‡‹”‡•’‡…–‘ˆ„‘‘’”‘ϐ‹––ƒš—†‡”‡…–‹‘ͳͳͷ ‘–Š‡”™‹•‡‹–‹•Ž‹ƒ„Ž‡ˆ‘”
‹–‡”‡•–—†‡”‡…–‹‘•ʹ͵Ͷƒ†ʹ͵ͶǤ
– ‹• ‹† ‘ˆ ƒ†ƒ–‘”› ’ƒ›‡– ‘ˆ –ƒšǡ ƒ••‡••‡† „› –Š‡ ƒ••‡••‡‡ Š‹•‡Žˆ ‘ ‹…‘‡ „‡ˆ‘”‡ …‘’Ž‡–‹‘ ‘ˆ –Š‡
‹ƒ…‹ƒŽ‡ƒ”Ǥ
 538 Lesson 9 Ȉ EP-TL

‘Ž‡‘ˆ••‡••‹‰ˆϐ‹…‡”‹”‡Žƒ–‹‘–‘†˜ƒ…‡ƒ›‡–‘ˆƒš

Š‡ ƒ••‡••‡‡…ƒ ’ƒ› ƒ†˜ƒ…‡ –ƒš ƒ– ƒ ”ƒ–‡ Ž‘™‡” –Šƒ ƒ••‡••‡– ƒ†‡ „› –Š‡  ƒ† –Š‡ †‡’ƒ”–‡– …ƒ‘–
‘„Œ‡…––‘•—…Šƒ••‡••‡–ǡ„—––Š‡ƒ••‡••‡‡Šƒ•–‘ˆ—”‹•ŠŠ‹•‘™‡•–‹ƒ–‡‘ˆŽ‘™‡”…—””‡–‹…‘‡‹ ‘”‘Ǥ
ʹͺǦ—Œƒ„”ƒ…–‘”•–†Ǥ˜ǤȋʹͲͲͶȌͳ͵͹ƒšƒʹͳͳȋ—Œƒ„Ƭƒ”›ƒƒȌǤ
‘”Š‹‰Š‡”‡•–‹ƒ–‡ƒ†‡„›–Š‡ƒ••‡••‡‡ǡ ‘”ʹͺ‹•‘–”‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†Ǥ
Š‡™‹ŽŽϐ‹†‘—––Š‡…—””‡–‹…‘‡‘–Š‡ˆ‘ŽŽ‘™‹‰„ƒ•‹•ǣ
ȋ‹Ȍ ‘–ƒŽ ‹…‘‡‘ˆ–Š‡ Žƒ–‡•– ’”‡˜‹‘—•›‡ƒ” ‹ ”‡•’‡…– ‘ˆ ™Š‹…Š –Š‡ ƒ••‡••‡‡Šƒ•„‡‡ ƒ••‡••‡†„› ™ƒ› ‘ˆ
”‡‰—Žƒ”ƒ••‡••‡–Ǣ
ȋ‹‹Ȍ Š‡ –‘–ƒŽ ‹…‘‡ ”‡–—”‡† „› –Š‡ ƒ••‡••‡‡ ˆ‘” ƒ› ’”‡˜‹‘—• ›‡ƒ” •—„•‡“—‡– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ˆ‘”
™Š‹…Š”‡‰—Žƒ”ƒ••‡••‡–‹•ƒ†‡Ǥ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǣ

…ƒ”‡˜‹•‡Š‹•‘”†‡”’ƒ••‡†—†‡”‡…–‹‘ʹͳͲȋ͵Ȍȏ‡…–‹‘ʹͳͲȋͶȌȐǤ
ˆƒˆ–‡”ƒ‹‰–Š‡‘”†‡”—†‡”•‡…–‹‘ʹͳͲȋ͵Ȍǡ„—–„‡ˆ‘”‡ͳ•–ƒ”…Š‘ˆ–Š‡”‡Ž‡˜ƒ–ˆ‹ƒ…‹ƒŽ›‡ƒ”ƒ”‡–—”Šƒ•
„‡‡ˆ—”‹•Š‡†„›–Š‡ƒ••‡••‡‡ǡȋ„Ȍƒ”‡‰—Žƒ”ƒ••‡••‡–‘ˆ–Š‡ƒ••‡••‡‡‹•ƒ†‡ǡ‹”‡•’‡…–‘ˆƒŽƒ–‡”’”‡˜‹‘—•
›‡ƒ”ǡˆ‘”ƒŠ‹‰Š‡”ˆ‹‰—”‡ǡ–Š‡–Š‡••‡••‹‰‘ˆˆ‹…‡”ƒ›”‡˜‹•‡‘”ƒ‡†Š‹•‘”†‡”Ǥ
”‡…‡‹’–‘ˆ–Š‡‘”†‡”–Š‡ƒ••‡••‡‡Šƒ•–‘’ƒ›–Š‡ƒ†˜ƒ…‡–ƒšƒ……‘”†‹‰Ž›Ǥ
Lesson 9 Ȉ Procedural Compliance 539

Illustration 1 :
ƒŽ…—Žƒ–‡†˜ƒ…‡ƒšƒ›ƒ„Ž‡„›”Ǥ”—ˆ”‘–Š‡ˆ‘ŽŽ‘™‹‰‡•–‹ƒ–‡†‹…‘‡•ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǣ
Ȉ —•‹‡••…‘‡ǣ•ǤͶǡ͹ͷǡͲͲͲǢ
Ȉ ‡–ˆ”‘Š‘—•‡’”‘’‡”–›ǣ•Ǥ͵͸ǡͲͲͲ’‡”‘–ŠǢ
Ȉ —‹…‹’ƒŽ–ƒš‡•ǣ•Ǥʹ͹ǡͲͲͲǢ
Ȉ ‹‹‰ˆ”‘‰ƒ‡•ǣ•Ǥ͹ͲǡͲͲͲȋ‡–‘ˆȌǢ
Ȉ ‹ˆ‡‹•—”ƒ…‡’”‡‹—’ƒ‹†ˆ‘”Š‹•‡Žˆȋ•—ƒ••—”‡†ǣ•ǤͷǡͲͲǡͲͲͲȌǣ•Ǥ͵ͲǡͲͲͲǤ

Solution:
‘’—–ƒ–‹‘ ‘ˆ †˜ƒ…‡ ƒš ’ƒ›ƒ„Ž‡ „› ”Ǥ ”— Ǧ ”‡˜‹‘—• ‡ƒ” ʹͲʹͳǦʹʹ ȋ••‡••‡– ‡ƒ”
2022-23)
Step 1 ǣ‘’—–‡•–‹ƒ–‡†‘–ƒŽ…‘‡ˆ‘”–Š‡›‡ƒ”ǣ

Particulars •Ǥ •Ǥ

…‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ǣ

”‘••—ƒŽƒŽ—‡ȏ‡–ƒŽ…‘‡ȋ͵͸ǡͲͲͲšͳʹȌȐ Ͷǡ͵ʹǡͲͲͲ

Less : —‹…‹’ƒŽ–ƒš‡•’ƒ‹†„›‘™‡” ȋʹ͹ǡͲͲͲȌ

‡–—ƒŽƒŽ—‡ȋȌ ͶǡͲͷǡͲͲͲ
Less :–ƒ†ƒ”†‡†—…–‹‘̷͵ͲΨ‘ˆ ȋͳǡʹͳǡͷͲͲȌ ʹǡͺ͵ǡͷͲͲ
”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ—•‹‡••‘””‘ˆ‡••‹‘ Ͷǡ͹ͷǡͲͲͲ

…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǣ
‹‹‰ˆ”‘‰ƒ‡•ȋ‰”‘••Ȍȏ͹ͲͲͲͲšͳͲͲȋͳͲͲΨǦ͵ͲΨȐ ͳǡͲͲǡͲͲͲ

”‘••‘–ƒŽ…‘‡ȋ
Ȍ ͺǡͷͺǡͷͲͲ
‡••ǣ‡†—…–‹‘•—†‡”‡…–‹‘ͺͲ ȋ͵ͲǡͲͲͲȌ
Total Income 8,28,500

Step 2 ǣ‘’—–ƒ–‹‘•–‹ƒ–‡†‘ˆƒš‹ƒ„‹Ž‹–›ƒ††˜ƒ…‡ƒšƒ›ƒ„Ž‡

Particulars •Ǥ •Ǥ

ƒš‘ǣ

‹‹‰ˆ”‘
ƒ‡•̷͵ͲΨȏͳǡͲͲǡͲͲͲš͵ͲΨȐ ͵ͲǡͲͲͲ

ƒŽƒ…‡…‘‡̷Žƒ„ƒ–‡ȏͳʹǡͷͲͲΪʹͲΨ‘ˆȋ͹ǡʹͺǡͷͲͲǦͷǡͲͲǡͲͲͲȌȐ ͷͺǡʹͲͲ

ƒšƒ›ƒ„Ž‡ ͺͺǡʹͲͲ

Add ǣ—”…Šƒ”‰‡ǡ‹ˆƒ› ‹Ž

Add ǣ‡••̷ͶΨ ͵ǡͷʹͺ
ƒš‹ƒ„‹Ž‹–› ͻͳǡ͹ʹͺ
540 Lesson 9 Ȉ EP-TL

‡••ǣ ȋ͵ͲǡͲͲͲȌ
†˜ƒ…‡ƒš‹ƒ„‹Ž‹–› ͸ͳǡ͹ʹͺ
Advance Tax (Rounded off) 61,730

Step 3 ǣ†˜ƒ…‡ƒš•–ƒŽ‡–•Ǧ†˜ƒ…‡–ƒš‹•’ƒ›ƒ„Ž‡ƒ•ˆ‘ŽŽ‘™•ǣ

Upto % (Rate) ——Žƒ–‹˜‡ȋ•ǤȌ Each Instalment

ȋ•ǤȌ
ͳͷǤͲ͸ǤʹͲʹͳ ͳͷ ͻǡʹͷͻȏ͸ͳǡ͹͵ͲšͳͷΨȐ ͻǡʹͷͻ
ͳͷǤͲͻǤʹͲʹͳ Ͷͷ ʹ͹ǡ͹͹ͺȏ͸ͳǡ͹͵ͲšͶͷΨȐ ͳͺǡͷͳͻ
ͳͷǤͳʹǤʹͲʹͳ ͹ͷ Ͷ͸ǡʹͻ͹ȏ͸ͳǡ͹͵Ͳš͹ͷΨȐ ͳͺǡͷͳͻ
ͳͷǤͲ͵ǤʹͲʹʹ ͳͲͲ ͸ͳǡ͹͵Ͳȏ͸ͳǡ͹͵ͲšͳͲͲΨȐ ͳͷǡͶ͵͵

Note: ••—‹‰ƒ••‡••‡‡Šƒ•‘’–‡†ˆ‘”•‡…–‹‘ͳͳͷ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǤ

Illustration 2 :
‡† –†Ǥ ȋƒ †‹ƒ …‘’ƒ›Ȍ Šƒ• ‡•–‹ƒ–‡† ‹–• ‹…‘‡ ˆ‘” ’”‡˜‹‘—• ›‡ƒ” ʹͲʹͳǦʹʹǤ ƒŽ…—Žƒ–‡ ƒ†˜ƒ…‡ –ƒš
’ƒ›ƒ„Ž‡„›‹–ˆ”‘–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ —•‹‡••…‘‡ǣ•ǤͳͲǡͺͲǡͲͲͲǢ
Ȉ …‘‡ˆ”‘Š‘—•‡’”‘’‡”–›ȋƒˆ–‡”†‡†—…–‹‘—†‡”•‡…–‹‘ʹͶȌǣ•Ǥ͹ǡʹͲǡͲͲͲǢ
Ȉ ‘‰–‡”…ƒ’‹–ƒŽ‰ƒ‹ȋ
Ȍ‘–”ƒ•ˆ‡”‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–›‘ͳ•–‘˜‡„‡”ǡʹͲʹͳǣ•Ǥ͵ǡ͸ͲǡͲͲͲǢ
Ȉ –‡”‡•–‘„ƒ†‡’‘•‹–•ȋ‘–Š‡”–Šƒ•ƒ˜‹‰„ƒƒ……‘—–Ȍǣ•ǤͶͷǡͲͲͲǤǢ
Ȉ ‘„—•‹‡••‹…‘‡ƒ†‹–‡”‡•–™ƒ••Ǥ͸ͲǡͲͲͲǢ
Ȉ ‡†—…–‹‘—†‡”•‡…–‹‘ͺͲ
‹••ǤͳǡͲͲǡͲͲͲǤ

Solution:
‘’—–ƒ–‹‘‘ˆƒ†˜ƒ…‡–ƒš’ƒ›ƒ„Ž‡„›‡†–†Ǥˆ‘””‡˜‹‘—•‡ƒ”ʹͲʹͳǦʹʹȋ••‡••‡–‡ƒ”
2022-23) :
Step 1 ǣ‘’—–‡•–‹ƒ–‡†–‘–ƒŽ‹…‘‡ˆ‘”–Š‡›‡ƒ”ǣ

Particulars •Ǥ

”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ—•‹‡••‘””‘ˆ‡••‹‘ ͳͲǡͺͲǡͲͲͲ

…‘‡ˆ”‘Š‘—•‡’”‘’‡”–› ͹ǡʹͲǡͲͲͲ


͵ǡ͸ͲǡͲͲͲ

…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ǣ

–‡”‡•–‘„ƒ†‡’‘•‹–• ͶͷǡͲͲͲ

”‘••‘–ƒŽ…‘‡ȋ
Ȍ ʹʹǡͲͷǡͲͲͲ
‡••ǣ ‡†—…–‹‘•—†‡”‡…–‹‘ͺͲ
ȋͳǡͲͲǡͲͲͲȌ
Total Income 21,05,000
 Lesson 9 Ȉ Procedural Compliance 541

Step 2 ǣ ‘’—–ƒ–‹‘ ‘ˆ •–‹ƒ–‡† ƒš ‹ƒ„‹Ž‹–› ƒ† †˜ƒ…‡ ƒš ƒ›ƒ„Ž‡ ȋ– ‹• ’”‡•—‡† –Šƒ– ‡† –† ‹• ƒ
”‡‰—Žƒ”…‘’ƒ›™Š‹…Š‹•‘–•ƒ–‹•ˆ›‹‰–Š‡…‘†‹–‹‘•‘ˆͳͳͷǡͳͳͷƒ†ͳͳͷƒ†‹–•–—”‘˜‡”Ȁ
”‘••
”‡…‡‹’–•†—”‹‰Ǥ”ǤʹͲͳͻǦʹͲ‡š…‡‡†••ͶͲͲ”‘”‡•ǡŠ‡…‡”ƒ–‡‘ˆ–ƒš‹•–ƒ‡ƒ•͵ͲΨȌ

Particulars •Ǥ •Ǥ

Tax on ǣ

̷ʹͲΨȋ͵ǡ͸ͲǡͲͲͲšʹͲΨȌ ͹ʹǡͲͲͲ
ƒŽƒ…‡…‘‡̷͵ͲΨȏȋʹͳǡͲͷǡͲͲͲǦ͵ǡ͸ͲǡͲͲͲȌš͵ͲΨȐ ͷǡʹ͵ǡͷͲͲ ͷǡͻͷǡͷͲͲ
Add ǣ—”…Šƒ”‰‡ǡ‹ˆƒ› ‹Ž
Add ǣ‡••̷ͶΨ ʹ͵ǡͺʹͲ
ƒš‹ƒ„‹Ž‹–› ͸ǡͳͻǡ͵ʹͲ
‡••ǣ ȋ͸ͲǡͲͲͲȌ
†˜ƒ…‡ƒš‹ƒ„‹Ž‹–› ͷǡͷͻǡ͵ʹͲ
†˜ƒ…‡ƒšȋ”‘—†‡†‘ˆˆȌ ͷǡͷͻǡ͵ʹͲ

Step 3 ǣ†˜ƒ…‡ƒš•–ƒŽ‡–•Ǧ†˜ƒ…‡ƒš‹•’ƒ›ƒ„Ž‡ƒ•ˆ‘ŽŽ‘™•ǣ

Note ǣ†˜ƒ…‡ƒš‹•’ƒ›ƒ„Ž‡„›ƒŽŽ••‡••‡‡‹ˆ‘—”‹•–ƒŽŽ‡–•†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ǡ‹Ǥ‡Ǥǡ„›ͳͷ–Š —‡
ȋͳͷΨȌǡͳͷ–Š‡’–‡„‡”ȋͶͷΨȌǡͳͷ–Š‡…‡„‡”ȋ͹ͷΨȌƒ†ͳͷ–Šƒ”…ŠȋͳͲͲΨȌǤ‘™‡˜‡”ǡ‹…ƒ•‡‘ˆ
ƒ”‹•‹‰
ƒˆ–‡”‘‡‘”‘”‡‹•–ƒŽŽ‡–•ǡƒ†˜ƒ…‡–ƒš‘‹•–ƒŽŽ‡–•’”‹‘”–‘†ƒ–‡‘ˆ
…ƒ„‡’ƒ‹†™‹–Š‘—–‹…Ž—†‹‰
–ƒš ‘ 
 ƒ† ƒ†˜ƒ…‡ –ƒš ‘ ‹•–ƒŽŽ‡–• ƒˆ–‡” 
 —•– „‡ ’ƒ‹† ‹ –Š‡ ”‡ƒ‹‹‰ ‹•–ƒŽŽ‡–• ‘ –Š‡
ƒ‘—–‘ˆ–‘–ƒŽ–ƒšŽ‹ƒ„‹Ž‹–›‹…Ž—†‹‰–Šƒ–‘
Ǥ
Š‡”‡ˆ‘”‡ǡ‹–Š‹•…ƒ•‡ǡƒ†˜ƒ…‡–ƒš’ƒ›ƒ„Ž‡„›ͳ•–ƒ†ʹ†‹•–ƒŽŽ‡–™‘—Ž†„‡„ƒ•‡†‘ƒš‡š…Ž—†‹‰ƒš‘

ƒ†ƒ†˜ƒ…‡–ƒš’ƒ›ƒ„Ž‡„›͵”†ƒ†Ͷ–Š‹•–ƒŽŽ‡–™‘—Ž†„‡„ƒ•‡†‘–ƒš‹…Ž—†‹‰–ƒš‘
Ǥ
ƒš‡š…Ž—†‹‰–ƒš‘
ǣ•Ǥͷǡʹ͵ǡͷͲͲΪ‡••̷ͶΨα•ǤͷǡͶͶǡͶͶͲǦ•Ǥ͸ͲǡͲͲͲα•ǤͶǡͺͶǡͶͶͲ

Upto Cumulative Ψ ——Žƒ–‹˜‡ȋ•ǤȌ ƒ…Š‹•–ƒŽŽ‡–ȋ•ǤȌ

ͳͷǤͲ͸ǤʹͲʹͳ ͳͷ ͹ʹǡ͸͸͸ȏͶǡͺͶǡͶͶͲšͳͷΨȐ ͹ʹǡ͸͸͸
ͳͷǤͲͻǤʹͲʹͳ Ͷͷ ʹǡͳ͹ǡͻͻͺȏͶǡͺͶǡͶͶͲšͶͷΨȐ ͳǡͶͷǡ͵͵ʹ
ͳͷǤͳʹǤʹͲʹͳ ͹ͷ ͶǡͳͻǡͶͻͲȏͷǡͷͻǡ͵ʹͲš͹ͷΨȐ ʹǡͲͳǡͶͻʹ
ͳͷǤͲ͵ǤʹͲʹʹ ͳͲͲ ͷǡͷͻǡ͵ʹͲ ͳǡ͵ͻǡͺ͵Ͳ
ȏͷǡͷͻǡ͵ʹͲšͳͲͲΨȐ

SELF-ASSESSMENT TAX (SAT)

‡Žˆƒ••‡••‡––ƒš‡ƒ•–ƒš’ƒ‹†„›–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ•‡Žˆƒ••‡••‡–„‡ˆ‘”‡ϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ…‘‡Ǥ
‡Žˆ••‡••‡–‹••‹’Ž›ƒ’”‘…‡••™Š‡”‡ƒ’‡”•‘Š‹•‡Žˆƒ••‡••‡•Š‹•–ƒšŽ‹ƒ„‹Ž‹–›Š‹•‡Žˆ‘–Š‡‹…‘‡‡ƒ”‡†
†—”‹‰ –Š‡ ’ƒ”–‹…—Žƒ” ’”‡˜‹‘—• ›‡ƒ” ƒ† •—„‹–• …‘‡ ƒš ‡–—” –‘ –Š‡ †‡’ƒ”–‡–Ǥ ˜‡”› ’‡”•‘ǡ „‡ˆ‘”‡
ˆ—”‹•Š‹‰”‡–—”—†‡”•‡…–‹‘•ͳ͵ͻȋ”‡–—”‘ˆ‹…‘‡ȌǡͳͶʹȋͳȌǡͳͶͺȋ‹••—‡‘ˆ‘–‹…‡™Š‡”‡‹…‘‡Šƒ•‡•…ƒ’‡†
ƒ••‡••‡–Ȍƒ†ͳͷ͵ȋ••‡••‡–‹…ƒ•‡‘ˆ•‡ƒ”…Š‘””‡“—‹•‹–‹‘Ȍ•ŠƒŽŽƒ‡•‡Žˆƒ••‡••‡–‘ˆŠ‹•‹…‘‡ƒ†
’ƒ›–Š‡–ƒšǡ‹ˆ†—‡‘–Š‡„ƒ•‹•‘ˆ•—…Šƒ••‡••‡–ǤŠ‡–‘–ƒŽ–ƒš’ƒ›ƒ„Ž‡‹•…ƒŽ…—Žƒ–‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡
ƒ••‡••‡‡ƒˆ–‡”…‘•‹†‡”‹‰–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–ǣ
ȋ‹Ȍ –Š‡ƒ‘—–‘ˆ–ƒšƒŽ”‡ƒ†›’ƒ‹†—†‡”ƒ›’”‘˜‹•‹‘‘ˆ–Š‹•…–Ǣ
 542 Lesson 9 Ȉ EP-TL

ȋ‹‹Ȍ ƒ›–ƒš†‡†—…–‡†‘”…‘ŽŽ‡…–‡†ƒ–•‘—”…‡Ǣ
ȋ‹‹‹Ȍ ƒ›”‡Ž‹‡ˆ‘ˆ–ƒš‘”†‡†—…–‹‘‘ˆ–ƒš…Žƒ‹‡†—†‡”•‡…–‹‘ͻͲ‘”•‡…–‹‘ͻͳ‘ƒ……‘—–‘ˆ–ƒš’ƒ‹†‹ƒ
…‘—–”›‘—–•‹†‡†‹ƒǢ
ȋ‹˜Ȍ ƒ›”‡Ž‹‡ˆ‘ˆ–ƒš…Žƒ‹‡†—†‡”•‡…–‹‘ͻͲ‘ƒ……‘—–‘ˆ–ƒš’ƒ‹†‹ƒ›•’‡…‹ϐ‹‡†–‡””‹–‘”›‘—–•‹†‡†‹ƒ
”‡ˆ‡””‡†–‘‹–Šƒ–•‡…–‹‘Ǣƒ†
ȋ˜Ȍ ƒ›–ƒš…”‡†‹–…Žƒ‹‡†–‘„‡•‡–‘ˆˆ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͳͷ ‘”•‡…–‹‘ͳͳͷ Ǥ

…ƒ•‡‘ˆ†‡Žƒ›‹ˆ—”‹•Š‹‰‘ˆ”‡–—”‘ˆ‹…‘‡•‡Žˆƒ••‡••‡––ƒš•ŠƒŽŽƒŽ•‘‹…Ž—†‡‹–‡”‡•–ˆ‘”†‡Žƒ›ƒ†ˆ‡‡ˆ‘”
†‡Žƒ›—†‡”•‡…–‹‘ʹ͵Ͷ Ǥ
—…Š †‡–‡”‹‡† ˜ƒŽ—‡ ‘ˆ –ƒš ƒŽ‘‰ ™‹–Š –Š‡ ‹–‡”‡•– ’ƒ›ƒ„Ž‡ —†‡” ƒ› ’”‘˜‹•‹‘ ‘ˆ –Š‹• …– ˆ‘” ƒ› †‡Žƒ› ‹
ˆ—”‹•Š‹‰–Š‡”‡–—”‘”ƒ›†‡ˆƒ—Ž–‘”†‡Žƒ›‹’ƒ›‡–‘ˆƒ†˜ƒ…‡–ƒš‹•’ƒ‹†„‡ˆ‘”‡ˆ—”‹•Š‹‰–Š‡”‡–—”ƒ†–Š‡
’”‘‘ˆ‘ˆ’ƒ›‡–‘ˆ•—…Š–ƒš‹•ƒ––ƒ…Š‡†™‹–Š–Š‡”‡–—”Ǥ—…Šƒ‘—–’ƒ‹†„‡ˆ‘”‡ˆ—”‹•Š‹‰‘ˆ”‡–—”‹•‘™ƒ•
‡Žˆ••‡••‡–ƒšǤ
RETURNS
Return of Income [Section 139 (1)]
Š‡’”‘…‡†—”‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ˆ‘”ƒ‹‰ƒƒ••‡••‡–‘ˆ‹…‘‡„‡‰‹•™‹–Š–Š‡ϐ‹Ž‹‰‘ˆƒ”‡–—”‘ˆ
‹…‘‡Ǥ‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…–…‘–ƒ‹•–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–Š‡ˆ—”‹•Š‹‰‘ˆƒ”‡–—”‘ˆ‹…‘‡Ǥ
……‘”†‹‰–‘–Šƒ–•‡…–‹‘ǡ‹–‹••–ƒ–—–‘”‹Ž›‘„Ž‹‰ƒ–‘”›ˆ‘”
ȋƒȌ ‡˜‡”›’‡”•‘„‡‹‰ƒ…‘’ƒ›‘”ƒϐ‹”‘”
ȋƒȌ „‡‹‰ƒ’‡”•‘‘–Š‡”–Šƒƒ…‘’ƒ›‘”ϐ‹”–‘ˆ—”‹•Šƒ”‡–—”‘ˆŠ‹•–‘–ƒŽ‹…‘‡‘”–Š‡–‘–ƒŽ‹…‘‡‘ˆ
ƒ›‘–Š‡”’‡”•‘‹”‡•’‡…–‘ˆ™Š‹…ŠŠ‡‹•ƒ••‡••ƒ„Ž‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡ‹ƒŽŽ…ƒ•‡•™Š‡”‡Š‹•–‘–ƒŽ
‹…‘‡‘”–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›‘–Š‡”’‡”•‘ˆ‘”™Š‹…ŠŠ‡‹•Ž‹ƒ„Ž‡–‘„‡ƒ••‡••‡†„‡ˆ‘”‡…Žƒ‹‹‰ƒ›
†‡†—…–‹‘—†‡”…Šƒ’–‡”Ǧ‡š…‡‡†•ƒ†„‡ˆ‘”‡…Žƒ‹‹‰‡š‡’–‹‘„‡‡ϐ‹–•—†‡”•‡…–‹‘•ͷͶǡͷͶǡ
ͷͶǡͷͶǡͷͶ ǡͷͶ
ǡͷͶ
ƒ†ͷͶ
ǡ‹ƒ›”‡Ž‡˜ƒ–’”‡˜‹‘—•›‡ƒ”ǡ–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–
…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšǤ

–•Š‘—Ž†„‡‘„Ž‹‰ƒ–‘”›ˆ‘”–Š‡ϐ‹”‘”‘’ƒ›–‘ϐ‹Ž‡”‡–—”‘ˆ‹…‘‡‹‡˜‡”›…ƒ•‡Ǥ —”–Š‡”ǡ‹”‡•’‡…–‘ˆ‹†‹˜‹†—ƒŽǡ
 ǡǡǡ”–‹ϐ‹…‹ƒŽŒ—”‹†‹…ƒŽ‡”•‘ǡϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡•ŠƒŽŽ„‡…‘’—Ž•‘”›‹ˆ–Š‡‹”–‘–ƒŽ‹…‘‡„‡ˆ‘”‡
ƒŽŽ‘™‹‰†‡†—…–‹‘•—†‡”•‡…–‹‘•ͳͲǡͳͲǡͳͲ‘”…Šƒ’–‡”Ǧ‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–
…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡–ƒšǤ
‘’—Ž•‘”›ϐ‹Ž‹‰‘ˆ…‘‡ƒš”‡–—”‹”‡Žƒ–‹‘–‘••‡–•Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒ
–‹•ƒ†ƒ–‘”›–‘ϐ‹Ž‡ƒ”‡–—”‘ˆ‹…‘‡™Š‡”‡ƒ’‡”•‘ǡ„‡‹‰ƒ”‡•‹†‡–‘–Š‡”–Šƒ‘–‘”†‹ƒ”‹Ž›”‡•‹†‡–‹†‹ƒ
ƒ†™Š‘†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Šƒ•ƒ›ƒ••‡–‘”‹•ƒ„‡‡ϐ‹…‹ƒŽ‘™‡”‘ˆƒ›ƒ••‡–‘”‹•ƒ„‡‡ϐ‹…‹ƒ”›‘ˆƒ›ƒ••‡–
ȋ‹…Ž—†‹‰ƒ›ϐ‹ƒ…‹ƒŽ‹–‡”‡•–‹ƒ›‡–‹–›ȌŽ‘…ƒ–‡†‘—–•‹†‡†‹ƒ‘”•‹‰‹‰ƒ—–Š‘”‹–›‹ƒ›ƒ……‘—–Ž‘…ƒ–‡†
‘—–•‹†‡†‹ƒǤ
•—…Šƒ…ƒ•‡ǡ‹–‹•‹ƒ–‡”‹ƒŽ–Šƒ––Š‡–ƒšƒ„Ž‡‹…‘‡‹•Ž‡••–Šƒ–Š‡ƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ
Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡„‡‡ϐ‹…‹ƒŽ‘™‡”•Š‹’ƒ†„‡‡ϐ‹…‹ƒ”›Šƒ•„‡‡…Žƒ”‹ϐ‹‡†„›™ƒ›‘ˆƒ‡š’Žƒƒ–‹‘™Š‹…Š
•—‰‰‡•–•–Šƒ–Dz„‡‡ϐ‹…‹ƒŽ‘™‡”dz‹”‡•’‡…–‘ˆƒƒ••‡–‡ƒ•ƒ‹†‹˜‹†—ƒŽ™Š‘Šƒ•’”‘˜‹†‡†ǡ†‹”‡…–Ž›‘”‹†‹”‡…–Ž›ǡ
…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡ƒ••‡–ˆ‘”–Š‡‹‡†‹ƒ–‡‘”ˆ—–—”‡„‡‡ϐ‹–ǡ†‹”‡…–‘”‹†‹”‡…–ǡ‘ˆŠ‹•‡Žˆ‘”ƒ›‘–Š‡”’‡”•‘ƒ†
Dz„‡‡ϐ‹…‹ƒ”›dz‹”‡•’‡…–‘ˆƒƒ••‡–‡ƒ•ƒ‹†‹˜‹†—ƒŽ™Š‘†‡”‹˜‡•„‡‡ϐ‹–ˆ”‘–Š‡ƒ••‡–†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”
ƒ†–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”•—…Šƒ••‡–Šƒ•„‡‡’”‘˜‹†‡†„›ƒ›’‡”•‘‘–Š‡”–Šƒ•—…Š„‡‡ϐ‹…‹ƒ”›Ǥ
’‡”•‘•ŠƒŽŽ„‡ƒ†ƒ–‘”‹Ž›”‡“—‹”‡†–‘ϐ‹Ž‡Š‹•”‡–—”‘ˆ‹…‘‡ǡȂ
ȋ‹Ȍ ‹ˆ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Šƒ•†‡’‘•‹–‡†ƒƒ‘—–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‡š…‡‡†‹‰‘‡…”‘”‡
”—’‡‡•‹‘‡‘”‘”‡…—””‡–ƒ……‘—–ƒ‹–ƒ‹‡†™‹–Šƒ„ƒ‹‰…‘’ƒ›‘”ƒ…‘Ǧ‘’‡”ƒ–‹˜‡„ƒǢ‘”
ȋ‹‹Ȍ Šƒ•‹…—””‡†‡š’‡†‹–—”‡‘ˆƒƒ‘—–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‡š…‡‡†‹‰–™‘ŽƒŠ”—’‡‡•ˆ‘”Š‹•‡Žˆ
‘”ƒ›‘–Š‡”’‡”•‘ˆ‘”–”ƒ˜‡Ž–‘ƒˆ‘”‡‹‰…‘—–”›Ǣ‘”
 Lesson 9 Ȉ Procedural Compliance 543

ȋ‹‹‹Ȍ Šƒ•‹…—””‡†‡š’‡†‹–—”‡‘ˆƒƒ‘—–‘”ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡ƒ‘—–•‡š…‡‡†‹‰‘‡ŽƒŠ”—’‡‡•–‘™ƒ”†•
…‘•—’–‹‘‘ˆ‡Ž‡…–”‹…‹–›Ǣ‘”
ȋ‹˜Ȍ ˆ—Žϐ‹Ž••—…Š‘–Š‡”’”‡•…”‹„‡†…‘†‹–‹‘•ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ

—‡†ƒ–‡ˆ‘”ϐ‹Ž‹‰”‡–—”‘ˆ‹…‘‡
Š‡ ƒ••‡••‡‡ ‹• ‘„Ž‹‰‡† –‘ ˜‘Ž—–ƒ”‹Ž› ϐ‹Ž‡ –Š‡ ”‡–—” ‘ˆ ‹…‘‡ ™‹–Š‘—– ™ƒ‹–‹‰ ˆ‘” –Š‡ ‘–‹…‡ ‘ˆ –Š‡ ••‡••‹‰
ˆϐ‹…‡”…ƒŽŽ‹‰ˆ‘”–Š‡ϐ‹Ž‹‰‘ˆ–Š‡”‡–—”Ǥ
Š‡†—‡†ƒ–‡ˆ‘”ϐ‹Ž‹‰‘ˆ–Š‡”‡–—”„›ƒƒ••‡••‡‡‹ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›‘–Š‡”’‡”•‘‹”‡•’‡…–‘ˆ™Š‹…ŠŠ‡‹•
ƒ••‡••ƒ„Ž‡‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǡ•ŠƒŽŽ„‡ƒ•ˆ‘ŽŽ‘™•ǣ
ȋƒȌ ͵ͳ•–†ƒ›‘ˆ…–‘„‡”‘ˆ–Š‡••‡••‡–‡ƒ”ǡ™Š‡”‡–Š‡ƒ••‡••‡‡‹•Ǧ
ȋ‹Ȍ ƒ…‘’ƒ›ǡ
ȋ‹‹Ȍ ƒ’‡”•‘ǡ‘–Š‡”–Šƒƒ…‘’ƒ›™Š‘•‡ƒ……‘—–•ƒ”‡”‡“—‹”‡†–‘„‡ƒ—†‹–‡†—†‡”–Š‡…‘‡Ǧ–ƒš
…–‘”ƒ›‘–Š‡”Žƒ™ǡˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ǡ
ȋ‹‹‹Ȍ ƒ’ƒ”–‡”‘ˆƒϐ‹”™Š‘•‡ƒ……‘—–•ƒ”‡”‡“—‹”‡†–‘„‡ƒ—†‹–‡†—†‡”–Š‹•…–‘”—†‡”ƒ›Žƒ™ˆ‘”
–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ǤǤ
ȋ„Ȍ ͵Ͳ–Š†ƒ›‘ˆ‘˜‡„‡”‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”ǡ‹–Š‡…ƒ•‡‘ˆƒƒ••‡••‡‡™Š‘‹•”‡“—‹”‡†–‘ˆ—”‹•Šƒ”‡’‘”–
”‡ˆ‡””‡†–‘‹•‡…–‹‘ͻʹǤ
ȋ…Ȍ ͵ͳ•–†ƒ›‘ˆ —Ž›‘ˆ–Š‡••‡••‡–‡ƒ”ǡ‹–Š‡…ƒ•‡‘ˆƒ›‘–Š‡”ƒ••‡••‡‡Ǥ

Amendment vide Finance Act, 2021

ͳǤ †‹˜‹†—ƒŽ ƒ† •’‘—•‡ governed by Portuguese Civil Code of 1860 and Tax Audit applicability:
‡…–‹‘ͳ͵ͻŠƒ•„‡‡ƒ‡†‡†•‘ƒ•–‘ƒŽ‹‰–Š‡†—‡†ƒ–‡•‘ˆϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡ˆ‘”–Š‡ƒ••‡••‡‡
™‹–ŠŠ‹•ȀŠ‡”•’‘—•‡ǡ‹…ƒ•‡–Š‡’”‘˜‹•‹‘•‘ˆ–ƒš ƒ—†‹–ƒ”‡ƒ’’Ž‹…ƒ„Ž‡ǡ ƒ†–Š‡›ƒ”‡‰‘˜‡”‡†„›–Š‡
‘”–—‰—‡•‡ ‹˜‹Ž ‘†‡ ‘ˆ ͳͺ͸Ͳ ƒ† ‡…–‹‘ ͷ ‹• ƒ’’Ž‹…ƒ„Ž‡Ǥ  –Š‡ ‡”•–™Š‹Ž‡ ’”‘˜‹•‹‘• –Š‡”‡ ™ƒ• ƒ
‹•ƒ–…Š™Š‡”‡„›–Š‡•’‘—•‡Šƒ†–‘ϐ‹Ž‡Š‹•ȀŠ‡””‡–—”‡ƒ”Ž‹‡”„›͵ͳ —Ž›ƒ†–Š‡ƒ••‡••‡‡™ƒ•”‡“—‹”‡†
–‘ †‘ •‘ „› ͵ͳ …–‘„‡”ǡ ‹ˆ –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ͶͶ ™‡”‡ ƒ’’Ž‹…ƒ„Ž‡Ǥ Š—•ǡ –Š‡ †—‡ †ƒ–‡ ‘ˆ ͵ͳ•–
…–‘„‡”™‘—Ž†‘™„‡ƒ’’Ž‹…ƒ„Ž‡–‘„‘–Š–Š‡•ƒ‹†ƒ••‡••‡‡ƒ•™‡ŽŽƒ•Š‹•ȀŠ‡”•’‘—•‡ǡ‹ˆ‡‹–Š‡”‘‡‘ˆ–Š‡
‹•”‡“—‹”‡†–‘‰‡–Š‹•ȀŠ‡”„‘‘•ƒ—†‹–‡†Ǥ
ʹǤ ‹”ȋ…ƒ•‡•™Š‡”‡ͻʹƒ’’Ž‹…ƒ„Ž‡ȌƬƒ”–‡”ǣŠ‡‡ƒ”Ž‹‡”’”‘˜‹•‹‘•ˆ‘”ϐ‹Ž‹‰‘ˆ”‡–—”‘ˆ‹…‘‡Šƒ†
ƒ‹•ƒ–…Š‹…ƒ•‡–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͻʹ™‡”‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡ϐ‹”ƒ•–Š‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰”‡–—”
‘ˆ‹…‘‡™ƒ•͵ͳ•–…–‘„‡”ˆ‘”–Š‡’ƒ”–‡”•„—–͵Ͳ–Š‘˜‡„‡”ˆ‘”–Š‡ϐ‹”Ǥ–‹•’”‘’‘•‡†–‘ƒŽ‹‰–Š‡
†—‡†ƒ–‡‘ˆϐ‹Ž‹‰‡–—”‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻ–‘͵Ͳ–Š‘˜‡„‡”ǡˆ‘”–Š‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”–‘
™Š‘–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͻʹƒ”‡ƒ’’Ž‹…ƒ„Ž‡Ǥ

Ǧϐ‹Ž‹‰‘ˆ‡–—”
‹Ž‹‰‘ˆ…‘‡ƒš‡–—”•‹•ƒŽ‡‰ƒŽ‘„Ž‹‰ƒ–‹‘‘ˆ‡˜‡”›’‡”•‘™Š‘–‘–ƒŽ‹…‘‡ˆ‘”–Š‡’”‡˜‹‘—•›‡ƒ”‡š…‡‡†•–Š‡
‡š‡’–‹‘ Ž‹‹– ’”‘˜‹†‡† —†‡” –Š‡ …‘‡ ƒš …–ǡ ͳͻ͸ͳǤ Š‡ …‘‡ ƒš ‡’ƒ”–‡– Šƒ• ‹–”‘†—…‡† ‘ Ž‹‡
ˆƒ…‹Ž‹–›‹ƒ††‹–‹‘–‘…‘˜‡–‹‘ƒŽ‡–Š‘†–‘ϐ‹Ž‡”‡–—”‘ˆ‹…‘‡ǤŠ‡’”‘…‡••‘ˆ‡Ž‡…–”‘‹…ƒŽŽ›ϐ‹Ž‹‰‘ˆ…‘‡ƒš
”‡–—”–Š”‘—‰Š–Š‡‘†‡‘ˆ‹–‡”‡–ƒ……‡••‹•…ƒŽŽ‡†‡Ǧϐ‹Ž‹‰‘ˆ”‡–—”Ǥ–‹•ƒ†ƒ–‘”›–‘ϐ‹Ž‡–Š‡‹…‘‡–ƒš”‡–—”•
‘Ž‹‡ˆ‘”ƒŽŽ–Š‡”‡‰‹•–‡”‡†–ƒš’ƒ›‡”•ǡ‘™‡˜‡”ǡ’ƒ’‡””‡–—”•…ƒ„‡ϐ‹Ž‡†„›–Š‘•‡™Š‘ƒ”‡ƒ„‘˜‡ͺͲ›‡ƒ”•‘ˆƒ‰‡
ƒ††‘‘–Šƒ˜‡ƒ›‹…‘‡ˆ”‘”‡‰—Žƒ”„—•‹‡••‘”’”‘ˆ‡••‹‘ǤŠ‡‘Ž›‘„Ž‹‰ƒ–‹‘ˆ‘”–Š‡—•‡”‘ˆ–Š‹•ˆƒ…‹Ž‹–›‹•
–‘Šƒ˜‡ƒ—„‡”ǤŠ‡”‡ƒ”‡†‹ˆˆ‡”‡–ˆ‘”•ˆ”‘Ǧ–‘Ǧ͹ˆ‘”‡Ǧϐ‹Ž‹‰‘ˆ”‡–—”•ǤŠ‡”‡‹•ƒ’”‘˜‹•‹‘
‡Ǧϐ‹Ž‹‰ˆ‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡„›–Š‡ƒ••‡••‡‡Ǥ
 544 Lesson 9 Ȉ EP-TL

ITR
Form Applicability
No
ͳ  ‘‡ ’ƒ‰‡ •‹’Ž‹ϐ‹‡†  ͳ ȋ Ȍ …ƒ „‡ ϐ‹Ž‡† „› ƒ ‹†‹˜‹†—ƒŽ ™Š‘ ‹• ”‡•‹†‡– ‘–Š‡” –Šƒ ‘–
‘”†‹ƒ”‹Ž›”‡•‹†‡–ǡŠƒ˜‹‰‹…‘‡ˆ”‘•ƒŽƒ”‹‡•ǡ ‘‡Š‘—•‡’”‘’‡”–›ǡ‹…‘‡ˆ”‘‘–Š‡”•‘—”…‡•ȋ‹–‡”‡•–
‡–…ǤȌǤƒ†Šƒ˜‹‰–‘–ƒŽ‹…‘‡—’–‘•ǤͷͲŽƒŠƒ†ƒ‰”‹…—Ž–—”ƒŽ‹…‘‡—’–‘•Ǥͷ–Š‘—•ƒ†ȋ‘–ˆ‘”ƒ
‹†‹˜‹†—ƒŽ ™Š‘ ‹• ‡‹–Š‡” ‹”‡…–‘” ‹ ƒ …‘’ƒ› ‘” Šƒ• ‹˜‡•–‡† ‹ —Ž‹•–‡† ‡“—‹–› •Šƒ”‡• ‘” ‹ …ƒ•‡•
™Š‡”‡Šƒ•„‡‡†‡†—…–‡†—Ȁ•ͳͻͶ‘”‹ˆ‹…‘‡Ǧ–ƒš‹•†‹ˆˆ‡”‡†‘
ʹ †‹˜‹†—ƒŽ•ƒ† •‘–Šƒ˜‹‰‹…‘‡ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘•ŠƒŽŽ„‡‡Ž‹‰‹„Ž‡–‘ϐ‹Ž‡ʹǤ

͵ †‹˜‹†—ƒŽ•ƒ† •Šƒ˜‹‰‹…‘‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dzŠƒ˜‡–‘
ϐ‹Ž‡͵Ǥ
Ͷ ‘”†‹˜‹†—ƒŽ•ǡ •ƒ† ‹”•ȋ‘–Š‡”–ŠƒȌ„‡‹‰ƒ‡•‹†‡–Šƒ˜‹‰‘–ƒŽ…‘‡—’–‘•ǤͷͲŽƒŠ•
ƒ†Šƒ˜‹‰‹…‘‡ˆ”‘—•‹‡••ƒ†”‘ˆ‡••‹‘™Š‹…Š‹•…‘’—–‡†—†‡”•‡…–‹‘•ͶͶǡͶͶ‘”
ͶͶ ȋ‘– ˆ‘” ƒ †‹˜‹†—ƒŽ ™Š‘ ‹• ‡‹–Š‡” ‹”‡…–‘” ‹ ƒ …‘’ƒ› ‘” Šƒ• ‹˜‡•–‡† ‹ Ž‹•–‡† “—‹–›
Šƒ”‡•‘”‹ˆ‹…‘‡Ǧ–ƒš‹•†‹ˆˆ‡”‡†‘ȌǤ
ͷ ͷ…ƒ„‡—•‡†„›’‡”•‘•‘–Š‡”–Šƒ‹†‹˜‹†—ƒŽǡ ǡ …‘’ƒ› ƒ† ’‡”•‘ϐ‹Ž‹‰ ‘”͹Ǥ

͸ ͸…ƒ„‡—•‡†„›…‘’ƒ‹‡•‘–Š‡”–Šƒ…‘’ƒ‹‡•…Žƒ‹‹‰‡š‡’–‹‘—†‡”•‡…–‹‘ͳͳǤ

͹  ͹ …ƒ „‡ —•‡† „› ’‡”•‘• ‹…Ž—†‹‰ …‘’ƒ‹‡• ”‡“—‹”‡† –‘ ˆ—”‹•Š ”‡–—” —†‡” •‡…–‹‘•
ͳ͵ͻȋͶȌ‘”ͳ͵ͻȋͶȌ‘”ͳ͵ͻȋͶȌ‘”ͳ͵ͻȋͶȌǤ

ŽŽ–Š‡•‡ ‘”•ƒ”‡–‘„‡ϐ‹Ž‡†‡Ž‡…–”‘‹…ƒŽŽ›Ǥ‘™‡˜‡”ǡ™Š‡”‡”‡–—”‹•ˆ—”‹•Š‡†‹ ‘”Ǧͳȋ Ȍ‘”Ǧ

Ͷȋ
Ȍǡ–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•Šƒ˜‡ƒ‘’–‹‘–‘ϐ‹Ž‡”‡–—”‹’ƒ’‡”ˆ‘”ǣ
Ȉ ƒ†‹˜‹†—ƒŽ‘ˆ–Š‡ƒ‰‡‘ˆͺͲ›‡ƒ”•‘”‘”‡ƒ–ƒ›–‹‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǣ‘”
Ȉ ƒ†‹˜‹†—ƒŽ‘” ™Š‘•‡‹…‘‡†‘‡•‘–‡š…‡‡†ϐ‹˜‡ŽƒŠ”—’‡‡•ƒ†™Š‘Šƒ•‘–…Žƒ‹‡†ƒ›”‡ˆ—†
‹–Š‡‡–—”‘ˆ…‘‡Ǥ

Bulk Filing of Return, an option to furnish return to employer

†‡”•…Š‡‡‘ˆ—Ž ‹Ž‹‰‘ˆ‡–—”ǡƒ›’‡”•‘ǡ„‡‹‰ƒ‹†‹˜‹†—ƒŽ™Š‘‹•‹”‡…‡‹’–‘ˆ‹…‘‡…Šƒ”‰‡ƒ„Ž‡—†‡”
–Š‡ Š‡ƒ† DzƒŽƒ”‹‡•dz ƒ›ǡ ƒ– Š‹• ‘’–‹‘ǡ ˆ—”‹•Š ƒ ”‡–—” ‘ˆ Š‹• ‹…‘‡ ˆ‘” ƒ› ’”‡˜‹‘—• ›‡ƒ” –‘ Š‹• ‡’Ž‘›‡”ǡ ‹
ƒ……‘”†ƒ…‡™‹–Š•—…Š•…Š‡‡ƒ•ƒ›„‡•’‡…‹ϐ‹‡†„›–Š‡‘ƒ”†‹–Š‹•„‡ŠƒŽˆǤŠ‡‡’Ž‘›‡”•ŠƒŽŽˆ—”‹•ŠƒŽŽ”‡–—”•
‘ˆ‹…‘‡”‡…‡‹˜‡†„›Š‹‘‘”„‡ˆ‘”‡–Š‡†—‡†ƒ–‡ǡ‹•—…Šˆ‘”ȋ‹…Ž—†‹‰‘ƒϐŽ‘’’›ǡ†‹•‡––‡ǡƒ‰‡–‹……ƒ”–”‹†‰‡
–ƒ’‡ǡǦ‘”ƒ›‘–Š‡”…‘’—–‡””‡ƒ†ƒ„Ž‡‡†‹ƒȌƒ†ƒ‡”ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Šƒ–•…Š‡‡ǡƒ†‹•—…Š
…ƒ•‡ǡƒ›‡’Ž‘›‡‡™Š‘Šƒ•ϐ‹Ž‡†ƒ”‡–—”‘ˆŠ‹•‹…‘‡–‘Š‹•‡’Ž‘›‡”•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡ˆ—”‹•Š‡†ƒ”‡–—”
‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻȋͳȌƒ†–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ
‘™‡˜‡”ǡ–Š‡ˆ‘ŽŽ‘™‹‰”‡–—”•‘ˆ‡’Ž‘›‡‡•…ƒ‘–„‡•—„‹––‡†—†‡”–Š‡ƒ„‘˜‡•…Š‡‡•ǣ
ȋ‹Ȍ ”‡–—”‘ˆƒ›‡ƒ”‘–Š‡”–Šƒ–Š‡…—””‡–›‡ƒ”Ǣ
ȋ‹‹Ȍ ”‡–—”™‹–Š‘—–Ǣ
ȋ‹‹‹Ȍ ”‡–—”—†‡”Ž‘…ƒ••‡••‡–Ǣ
ȋ‹˜Ȍ ”‡–—”‘ˆƒ‡’Ž‘›‡‡Šƒ˜‹‰‘”‡–Šƒ‘‡‡’Ž‘›‡”Ǥ

Power to Central Government

‡…–‹‘ͳ͵ͻȋͳȌ‡’‘™‡”•–Š‡‡–”ƒŽ
‘˜‡”‡––‘‡š‡’–ƒ›…Žƒ••‘”…Žƒ••‡•‘ˆ’‡”•‘•ˆ”‘–Š‡”‡“—‹”‡‡–
‘ˆˆ—”‹•Š‹‰ƒ”‡–—”‘ˆ‹…‘‡„›‹••—‡‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡Ǥ
 Lesson 9 Ȉ Procedural Compliance 545

Return of Loss [Section 139(3)]

Š‹••‡…–‹‘”‡“—‹”‡•–Š‡ƒ••‡••‡‡–‘ϐ‹Ž‡ƒ”‡–—”‘ˆŽ‘••‹–Š‡ƒ‡”ƒ†™‹–Š‹–Š‡•ƒ‡–‹‡Ž‹‹–•ƒ•”‡“—‹”‡†
ˆ‘”ƒ”‡–—”‘ˆ‹…‘‡—Ȁ•ͳ͵ͻȋͳȌǤ‡…–‹‘ͺͲ”‡“—‹”‡•ƒ†ƒ–‘”›ϐ‹Ž‹‰‘ˆ”‡–—”‘ˆŽ‘••—Ȁ•ͳ͵ͻȋ͵Ȍ‘‘”„‡ˆ‘”‡–Š‡
†—‡†ƒ–‡•’‡…‹ϐ‹‡†—Ȁ•ͳ͵ͻȋͳȌˆ‘”…ƒ””›ˆ‘”™ƒ”†‘ˆŽ‘••—†‡”–Š‡Š‡ƒ†Ǯ’”‘ϐ‹–•ƒ†‰ƒ‹•ˆ”‘„—•‹‡••‘”’”‘ˆ‡••‹‘ǯ
‘”Ž‘••ˆ”‘ƒ‹–‡ƒ…‡‘ˆ”ƒ…‡Š‘”•‡•‘”—†‡”–Š‡Š‡ƒ†Ǯƒ’‹–ƒŽ‰ƒ‹•ǯǤ‘™‡˜‡”ǡŽ‘••—†‡”–Š‡Š‡ƒ†Dz…‘‡
ˆ”‘Š‘—•‡’”‘’‡”–›dzƒ•—†‡”•‡…–‹‘͹ͳƒ†—ƒ„•‘”„‡††‡’”‡…‹ƒ–‹‘—†‡”•‡…–‹‘͵ʹ…ƒ„‡…ƒ””‹‡†ˆ‘”™ƒ”†
ˆ‘”•‡–Ǧ‘ˆˆ‡˜‡–Š‘—‰Š”‡–—”‘ˆŽ‘••Šƒ•„‡‡ϐ‹Ž‡†ƒˆ–‡”–Š‡†—‡†ƒ–‡ǤŽ‡••–Š‡ƒ••‡••‡‡ϐ‹Ž‡•ƒ”‡–—”‘ˆŽ‘••‹
–Š‡ƒ‡”ƒ†™‹–Š‹–Š‡•ƒ‡–‹‡Ž‹‹–•ƒ•”‡“—‹”‡†ˆ‘”ƒ”‡–—”‘ˆ‹…‘‡ǡ–Š‡ƒ••‡••‡‡™‘—Ž†‘–„‡‡–‹–Ž‡†
–‘…ƒ””›ˆ‘”™ƒ”†–Š‡Ž‘••ˆ‘”„‡‹‰•‡–‘ˆˆƒ‰ƒ‹•–‹…‘‡‹–Š‡•—„•‡“—‡–›‡ƒ”Ǥ
Belated Return [Section 139(4)]
›’‡”•‘™Š‘Šƒ•‘–ϐ‹Ž‡†–Š‡”‡–—”™‹–Š‹–Š‡–‹‡ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͳ͵ͻȋͳȌƒ›ϐ‹Ž‡ƒ„‡Žƒ–‡†”‡–—”ƒ–
ƒ›–‹‡„‡ˆ‘”‡–Š‡͵ͳ•–‡…‡„‡”‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”‘”„‡ˆ‘”‡–Š‡…‘’Ž‡–‹‘‘ˆ–Š‡ƒ••‡••‡–ǡ
™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
‘ŽŽ‘™‹‰ƒ”‡–Š‡…‘•‡“—‡…‡•‘ˆ†‡Žƒ›‹ϐ‹Ž‹‰–Š‡”‡–—”‘ˆ‹…‘‡ǣ
ƒǤ ‘••ȋ‘–Š‡”–ŠƒŠ‘—•‡’”‘’‡”–›Ž‘••Ȁ—ƒ„•‘”„‡†‡’”‡…‹ƒ–‹‘Ȍ…ƒ‘–„‡…ƒ””‹‡†ˆ‘”™ƒ”†Ǥ
„Ǥ ‡˜›‘ˆ‹–‡”‡•–ˆ‘”Žƒ–‡ϐ‹Ž‹‰—†‡”•‡…–‹‘ʹ͵ͶǤ
…Ǥ ‡˜›‘ˆˆ‡‡—†‡”•‡…–‹‘ʹ͵Ͷ Ǥ
†Ǥ š‡’–‹‘•—†‡”•‡…–‹‘•ͳͲǡͳͲǡƒ”‡‘–ƒ˜ƒ‹Žƒ„Ž‡Ǥ
‡Ǥ ‡†—…–‹‘—†‡”ƒ”–Ǧ‘ˆŠƒ’–‡”Ǧ•ŠƒŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡Ǥ

Example : ‘”–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǡ”Ǥ†‹†‘–ϐ‹Ž‡–Š‡”‡–—”‘ˆ‹…‘‡‘–Š‡†—‡†ƒ–‡Ǥƒ”Ǥϐ‹Ž‡–Š‡
”‡–—”‘ˆ‹…‘‡ƒˆ–‡”–Š‡†—‡†ƒ–‡ǫ
‘””‡…–ƒ•™‡”Ǥ‡•ǡ•’‡”•‡…–‹‘ͳ͵ͻȋͶȌǡ”Ǥ…ƒϐ‹Ž‡†ƒ„‡Žƒ–‡†”‡–—”Ǥ”Ǥƒ›ϐ‹Ž‡–Š‡”‡–—”‘ˆ‹…‘‡ƒ–ƒ›
–‹‡‘‘”„‡ˆ‘”‡͵ͳ•–‘ˆ‡…‡„‡”ǡʹͲʹʹǤ
Return of Income of charitable trust and institutions [Section 139(4A)]
—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ‡…–‹‘ͳ͵ͻƒŽ•‘ƒ‡•‹–‹…—„‡–‘ˆDz‡˜‡”›’‡”•‘‹”‡…‡‹’–‘ˆ‹…‘‡†‡”‹˜‡†ˆ”‘’”‘’‡”–›
Š‡Ž† —†‡” –”—•– ‘” ‘–Š‡” Ž‡‰ƒŽ ‘„Ž‹‰ƒ–‹‘ ™Š‘ŽŽ› ˆ‘” …Šƒ”‹–ƒ„Ž‡ ‘” ”‡Ž‹‰‹‘—• ’—”’‘•‡• ‘” ‹ ’ƒ”– ‘Ž› ˆ‘” •—…Š
’—”’‘•‡•‘”‘ˆ‹…‘‡„‡‹‰˜‘Ž—–ƒ”›…‘–”‹„—–‹‘•™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘ʹȋʹͶȌȋ‹‹ƒȌdz–‘ˆ—”‹•Šƒ”‡–—”
‘ˆ‹…‘‡‹…ƒ•‡–Š‡–‘–ƒŽ‹…‘‡‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ
—”–Š‡”ǡ‘‡™Š‘‹•ƒ••‡••ƒ„Ž‡ƒ•ƒ”‡’”‡•‡–ƒ–‹˜‡ƒ••‡••‡‡ˆ‘”–Š‡”‡…‡‹’–‘ˆ‹…‘‡†‡”‹˜‡†ˆ”‘’”‘’‡”–›Š‡Ž†
—†‡””—•–‘”‘–Š‡”Ž‡‰ƒŽ‘„Ž‹‰ƒ–‹‘™Š‘ŽŽ›ˆ‘”…Šƒ”‹–ƒ„Ž‡‘””‡Ž‹‰‹‘—•’—”’‘•‡•‘”‹’ƒ”–‘Ž›ˆ‘”•—…Š’—”’‘•‡•
‘”‘ˆ‹…‘‡„‡‹‰˜‘Ž—–ƒ”›…‘–”‹„—–‹‘••ŠƒŽŽˆ—”‹•Šƒ”‡–—”‘ˆ‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹–Š‡’”‡•…”‹„‡†
ˆ‘”ƒ†‰‡–‹–˜‡”‹ϐ‹‡†‹•—…Šƒ‡”ƒ•’”‡•…”‹„‡†—†‡”‡…–‹‘ͳ͵ͻȋͳȌǡ‹ˆ–Š‡–‘–ƒŽ‹…‘‡ȋ™‹–Š‘—–‰‹˜‹‰‡ˆˆ‡…–
–‘–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘•ͳͳƒ†ͳʹȌ‡š…‡‡†•–Š‡ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǤ
Return of Income of Political Party [Section 139(4B)]
–‹•ƒŽ•‘‹…—„‡–‘–Š‡’‘Ž‹–‹…ƒŽ’ƒ”–‹‡•–‘ϐ‹Ž‡–Š‡‹””‡–—”‘ˆ‹…‘‡ȏ‹ˆ–Š‡‹…‘‡ȋ™‹–Š‘—–‰‹˜‹‰‡ˆˆ‡…––‘–Š‡
’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳ͵Ȍ‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–‘–…Šƒ”‰‡ƒ„Ž‡–‘–ƒšȐǡ†—Ž›•‹‰‡†„›–Š‡Š‹‡ˆš‡…—–‹˜‡
ˆϐ‹…‡”‘ˆ–Š‡’ƒ”–›Ǥ
‡–—”‘ˆ…‘‡‘ˆ’‡…‹ϐ‹‡†••‘…‹ƒ–‹‘Ȁ•–‹–—–‹‘•ȏ‡…–‹‘ͳ͵ͻȋͶȌȐ
‘ŽŽ‘™‹‰’‡”•‘•ƒ”‡”‡“—‹”‡†–‘ϐ‹Ž‡–Š‡”‡–—”ǣ
ȋƒȌ ‡•‡ƒ”…Šƒ••‘…‹ƒ–‹‘”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͲȋʹͳȌǢ
ȋ„Ȍ ‡™•ƒ‰‡…›”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͲȋʹʹȌǢ
ȋ…Ȍ ƒ••‘…‹ƒ–‹‘‘”‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͲȋʹ͵ȌǢ
ȋ†Ȍ ‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͲȋʹ͵ȌǢ
 546 Lesson 9 Ȉ EP-TL

ȋ‡Ȍ ˆ—†‘”‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹˜Ȍ‘”–”—•–‘”‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ˜Ȍ‘”ƒ›
—‹˜‡”•‹–›‘”‘–Š‡”‡†—…ƒ–‹‘ƒŽ‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹‹‹ƒ„Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹‹ƒ†Ȍ‘”•—„Ǧ
…Žƒ—•‡ȋ˜‹Ȍ‘”ƒ›Š‘•’‹–ƒŽ‘”‘–Š‡”‡†‹…ƒŽ‹•–‹–—–‹‘”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋ‹‹‹ƒ…Ȍ‘”•—„Ǧ…Žƒ—•‡ȋ‹‹‹ƒ‡Ȍ
‘”•—„Ǧ…Žƒ—•‡ȋ˜‹ƒȌ‘ˆ…Žƒ—•‡ȋʹ͵Ȍ‘ˆ•‡…–‹‘ͳͲǢ
ȋ‡ƒȌ —–—ƒŽ —†”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋʹ͵Ȍ‘ˆ•‡…–‹‘ͳͲǢ
ȋ‡„Ȍ •‡…—”‹–‹•ƒ–‹‘–”—•–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋʹ͵Ȍ‘ˆ•‡…–‹‘ͳͲǢ
ȋ‡…Ȍ ˜‡–—”‡…ƒ’‹–ƒŽ…‘’ƒ›‘”˜‡–—”‡…ƒ’‹–ƒŽˆ—†”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋʹ͵ Ȍ‘ˆ•‡…–‹‘ͳͲǢ
ȋˆȌ –”ƒ†‡—‹‘”‡ˆ‡””‡†–‘‹‡…–‹‘ͳͲȋʹͶȌȋƒȌ‘”ͳͲȋʹͶȌȋ„ȌǢ
ȋ‰Ȍ „‘†›‘”ƒ—–Š‘”‹–›‘”‘ƒ”†‘””—•–‘”‘‹••‹‘‹•‡…–‹‘ͳͲȋͶ͸ȌǢ
ȋŠȌ ‹ˆ”ƒ•–”—…–—”‡†‡„–ˆ—†”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͲȋͶ͹Ȍ‘”—–—ƒŽ —†‘”‡…—”‹–‹•ƒ–‹‘”—•–‘”˜‡–—”‡
…ƒ’‹–ƒŽ…‘’ƒ›‘”˜‡–—”‡…ƒ’‹–ƒŽˆ—†Ǥ

…‘’‡ ‘ˆ ‡…–‹‘ ͳ͵ͻȋͶȌ ‹• ‡š’ƒ†‡† –‘ ‹…Ž—†‡ ƒ ƒ••‡••‡‡ ™Š‘ “—ƒŽ‹ϐ‹‡• –‘ ‡š‡’–‹‘ —†‡” •‡…–‹‘
ͳͲȋʹ͵Ȍǡȋʹ͵Ȍǡȋʹ͵Ȍǡȋʹ͵ȌǡȋʹͻȌǤ
Š‡ ƒ„‘˜‡ ’‡”•‘• •ŠƒŽŽǡ ‹ˆ –Š‡ –‘–ƒŽ ‹…‘‡ǡ ™‹–Š‘—– ‰‹˜‹‰ ‡ˆˆ‡…– –‘ –Š‡ ’”‘˜‹•‹‘• ‘ˆ ‡…–‹‘ ͳͲǡ ‡š…‡‡†• –Š‡
ƒš‹—ƒ‘—–™Š‹…Š‹•‘–…Šƒ”‰‡ƒ„Ž‡–‘‹…‘‡Ǧ–ƒšǡˆ—”‹•Šƒ”‡–—”‘ˆ•—…Š‹…‘‡‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”‹–Š‡
’”‡•…”‹„‡†ˆ‘”ƒ†˜‡”‹ϐ‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”ƒ†•‡––‹‰ˆ‘”–Š•—…Š‘–Š‡”’ƒ”–‹…—Žƒ”•ƒ•ƒ›„‡’”‡•…”‹„‡†
ƒ†ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽǡ•‘ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›ƒ•‹ˆ‹–™‡”‡ƒ”‡–—””‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†—†‡”
‡…–‹‘ͳ͵ͻȋͳȌdzǤ
Revised Return [Section 139(5)]
ƒ••‡••‡‡™Š‘‹•”‡“—‹”‡†–‘ϐ‹Ž‡ƒ”‡–—”‘ˆ‹…‘‡‹•‡–‹–Ž‡†–‘”‡˜‹•‡–Š‡”‡–—”‘ˆ‹…‘‡‘”‹‰‹ƒŽŽ›ϐ‹Ž‡†„›
Š‹–‘ƒ‡•—…Šƒ‡†‡–•ǡƒ††‹–‹‘•‘”…Šƒ‰‡•ƒ•ƒ›„‡ˆ‘—†‡…‡••ƒ”›„›Š‹Ǥ—…Šƒ”‡˜‹•‡†”‡–—”
ƒ›„‡ϐ‹Ž‡†„›–Š‡ƒ••‡••‡‡ƒ–ƒ›–‹‡
Ȉ „‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡͵ͳ•–‡…‡„‡”‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”
Ȉ „‡ˆ‘”‡–Š‡…‘’Ž‡–‹‘‘ˆƒ••‡••‡–™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ

‡˜‹•‡†”‡–—”…ƒ„‡ˆ—”–Š‡””‡˜‹•‡†—’–‘ƒ›—„‡”‘ˆ–‹‡•ǡ™‹–Š‹–Š‡’”‡•…”‹„‡†’‡”‹‘†Ǥ
Defective Return [Section 139(9)]
ˆ–Š‡••‡••‹‰ˆϐ‹…‡”…‘•‹†‡”•–Šƒ––Š‡”‡–—”‘ˆ‹…‘‡ˆ—”‹•Š‡†„›–Š‡ƒ••‡••‡‡‹•†‡ˆ‡…–‹˜‡ǡŠ‡ƒ›‹–‹ƒ–‡
–Š‡†‡ˆ‡…––‘–Š‡ƒ••‡••‡‡ƒ†‰‹˜‡Š‹ƒ‘’’‘”–—‹–›–‘”‡…–‹ˆ›–Š‡†‡ˆ‡…–™‹–Š‹ͳͷ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—…Š
‹–‹ƒ–‹‘‘”™‹–Š‹•—…Šˆ—”–Š‡”’‡”‹‘†ƒ•ƒ›„‡ƒŽŽ‘™‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”‘–Š‡”‡“—‡•–‘ˆ–Š‡ƒ••‡••‡‡Ǥ
ˆ–Š‡ƒ••‡••‡‡ˆƒ‹Ž•–‘”‡…–‹ˆ›–Š‡†‡ˆ‡…–™‹–Š‹–Š‡ƒˆ‘”‡•ƒ‹†’‡”‹‘†ǡ–Š‡”‡–—”•ŠƒŽŽ„‡†‡‡‡†–‘„‡‹˜ƒŽ‹†ƒ†
ˆ—”–Š‡”‹–•ŠƒŽŽ„‡†‡‡‡†–Šƒ––Š‡ƒ••‡••‡‡Šƒ†ˆƒ‹Ž‡†–‘ˆ—”‹•Š–Š‡”‡–—”Ǥ‘™‡˜‡”ǡ™Š‡”‡–Š‡ƒ••‡••‡‡”‡…–‹ϐ‹‡•
–Š‡†‡ˆ‡…–ƒˆ–‡”–Š‡‡š’‹”›‘ˆ–Š‡ƒˆ‘”‡•ƒ‹†’‡”‹‘†„—–„‡ˆ‘”‡–Š‡ƒ••‡••‡–‹•ƒ†‡ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›
…‘†‘‡–Š‡†‡Žƒ›ƒ†–”‡ƒ––Š‡”‡–—”ƒ•ƒ˜ƒŽ‹†”‡–—”Ǥ
ˆ –Š‡ •‡Žˆ ƒ••‡••‡– –ƒš ‹• ‘– ’ƒ‹† ‘ ‘” „‡ˆ‘”‡ –Š‡ †ƒ–‡ ‘ˆ ˆ—”‹•Š‹‰ –Š‡ ”‡–—” ‘ˆ ‹…‘‡ǡ ”‡–—” •ŠƒŽŽ „‡
…‘•‹†‡”‡†ƒ•†‡ˆ‡…–‹˜‡”‡–—”Ǥ
”‡–—”‘ˆ‹…‘‡•ŠƒŽŽ„‡”‡‰ƒ”†‡†ƒ•ƒ†‡ˆ‡…–‹˜‡”‡–—”—Ž‡••ƒŽŽ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡ˆ—Žϐ‹ŽŽ‡†ǣ
ȋƒȌ –Š‡ ƒ‡š—”‡•ǡ •–ƒ–‡‡–• ƒ† …‘Ž—• ‹ –Š‡ ”‡–—” ‘ˆ ‹…‘‡ ”‡Žƒ–‹‰ –‘ …‘’—–ƒ–‹‘ ‘ˆ ‹…‘‡
…Šƒ”‰‡ƒ„Ž‡—†‡”‡ƒ…ŠŠ‡ƒ†‘ˆ‹…‘‡ǡ…‘’—–ƒ–‹‘‘ˆ‰”‘••–‘–ƒŽ‹…‘‡ƒ†–‘–ƒŽ‹…‘‡Šƒ˜‡„‡‡
†—Ž›ϐ‹ŽŽ‡†‹Ǣ
ȋ„Ȍ –Š‡”‡–—”‹•ƒ……‘’ƒ‹‡†„›ƒ•–ƒ–‡‡–•Š‘™‹‰–Š‡…‘’—–ƒ–‹‘‘ˆ–ƒš’ƒ›ƒ„Ž‡‘–Š‡„ƒ•‹•‘ˆ”‡–—”
ƒ•™‡ŽŽƒ•–Š‡”‡’‘”–‘ˆƒ—†‹–‘„–ƒ‹‡†—†‡”‡…–‹‘ͶǢ
ȋ„„Ȍ –Š‡”‡–—”‹•ƒ……‘’ƒ‹‡†„›–Š‡”‡’‘”–‘ˆ–Š‡ƒ—†‹–”‡ˆ‡””‡†–‘‹•‡…–‹‘ͶͶǡ‘”ǡ™Š‡”‡–Š‡”‡’‘”–Šƒ•
„‡‡ ˆ—”‹•Š‡† ’”‹‘” –‘ –Š‡ ˆ—”‹•Š‹‰ ‘ˆ –Š‡ ”‡–—”ǡ „› ƒ …‘’› ‘ˆ •—…Š ”‡’‘”– –‘‰‡–Š‡” ™‹–Š ’”‘‘ˆ ‘ˆ
ˆ—”‹•Š‹‰–Š‡”‡’‘”–Ǣ
 Lesson 9 Ȉ Procedural Compliance 547

ȋ…Ȍ –Š‡”‡–—”‹•ƒ……‘’ƒ‹‡†„›’”‘‘ˆ‘ˆǣ
ȋ‹Ȍ –Š‡ –ƒšǡ ‹ˆ ƒ›ǡ …Žƒ‹‡† –‘ Šƒ˜‡ „‡‡ †‡†—…–‡† ƒ– •‘—”…‡ ƒ† –Š‡ ƒ†˜ƒ…‡ –ƒš ƒ† –ƒš ‘ •‡ŽˆǦ
ƒ••‡••‡–ǡ‹ˆƒ›ǡ…Žƒ‹‡†–‘Šƒ˜‡„‡‡’ƒ‹†Ǣ
ȋ‹‹Ȍ –Š‡ ƒ‘—– ‘ˆ …‘’—Ž•‘”› †‡’‘•‹–ǡ ‹ˆ ƒ›ǡ …Žƒ‹‡† –‘ Šƒ˜‡ „‡‡ ƒ†‡ ȋŠ‡ •…Š‡‡ Šƒ• „‡‡
ƒ„‘Ž‹•Š‡†™Ǥ‡ǤˆǤͳǤͶǤͳͻͺͷȌǤ

—–ƒ”‡–—”•ŠƒŽŽ‘–„‡…ƒŽŽ‡††‡ˆ‡…–‹˜‡™Š‡”‡‹–‹•‘–ƒ……‘’ƒ‹‡†„›’”‘‘ˆ‘ˆ–Š‡–ƒšǡ‹ˆƒ›ǡ…Žƒ‹‡†–‘Šƒ˜‡„‡‡
†‡†—…–‡†ƒ–•‘—”…‡ǡ‹ˆǣ
ȋƒȌ ƒ…‡”–‹ϐ‹…ƒ–‡ˆ‘”–ƒš†‡†—…–‡†™ƒ•‘–ˆ—”‹•Š‡†—†‡”‡…–‹‘ʹͲ͵–‘–Š‡’‡”•‘ˆ—”‹•Š‹‰Š‹•”‡–—”‘ˆ
‹…‘‡Ǣ
ȋ„Ȍ •—…Š…‡”–‹ϐ‹…ƒ–‡‹•’”‘†—…‡†™‹–Š‹ƒ’‡”‹‘†‘ˆ–™‘›‡ƒ”••’‡…‹ϐ‹‡†—†‡”—„Ǧ•‡…–‹‘ȋͳͶȌ‘ˆ‡…–‹‘ͳͷͷǤ
ȋ†Ȍ ™Š‡”‡–Š‡”‡‰—Žƒ”„‘‘•‘ˆƒ……‘—–ƒ”‡ƒ‹–ƒ‹‡†„›–Š‡ƒ••‡••‡‡ǡ–Š‡”‡–—”‹•ƒ……‘’ƒ‹‡†„›…‘’‹‡•‘ˆǣ
ȋ‹Ȍ ƒ—ˆƒ…–—”‹‰ ƒ……‘—–ǡ –”ƒ†‹‰ ƒ……‘—–ǡ ’”‘ϐ‹– ƒ† Ž‘•• ƒ……‘—– ‘” ‹…‘‡ ƒ† ‡š’‡†‹–—”‡
ƒ……‘—–‘”ƒ›•‹‹Žƒ”ƒ……‘—–ƒ†„ƒŽƒ…‡•Š‡‡–Ǣ
ȋ‹‹Ȍ ‹–Š‡…ƒ•‡‘ˆ’”‘’”‹‡–ƒ”›„—•‹‡••‘”’”‘ˆ‡••‹‘ǡ–Š‡’‡”•‘ƒŽƒ……‘—–‘ˆ–Š‡’”‘’”‹‡–‘”Ǣ‹–Š‡…ƒ•‡
‘ˆ ƒ ϐ‹”ǡ ƒ••‘…‹ƒ–‹‘ ‘ˆ ’‡”•‘• ‘” „‘†› ‘ˆ ‹†‹˜‹†—ƒŽ•ǡ ’‡”•‘ƒŽ ƒ……‘—–• ‘ˆ –Š‡ ’ƒ”–‡”• ‘”
‡„‡”•Ǣ ƒ† ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ’ƒ”–‡” ‘” ‡„‡” ‘ˆ ƒ ϐ‹”ǡ ƒ••‘…‹ƒ–‹‘ ‘ˆ ’‡”•‘• ‘” „‘†› ‘ˆ
‹†‹˜‹†—ƒŽ•ǡƒŽ•‘Š‹•’‡”•‘ƒŽƒ……‘—–‹–Š‡ϐ‹”ǡƒ••‘…‹ƒ–‹‘‘ˆ’‡”•‘•‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•Ǥ
ȋ‡Ȍ ™Š‡”‡–Š‡ƒ……‘—–•‘ˆ–Š‡ƒ••‡••‡‡Šƒ˜‡„‡‡ƒ—†‹–‡†ǡ–Š‡”‡–—”‹•ƒ……‘’ƒ‹‡†„›…‘’‹‡•‘ˆ–Š‡ƒ—†‹–‡†
’”‘ϐ‹–ƒ†Ž‘••ƒ……‘—–ƒ†„ƒŽƒ…‡•Š‡‡–ƒ†ƒ—†‹–‘”•ǯ”‡’‘”–Ǣƒ†™Š‡”‡ƒƒ—†‹–‘ˆ…‘•–ƒ……‘—–•‘ˆ–Š‡
ƒ••‡••‡‡•Šƒ•„‡‡…‘†—…–‡†—†‡”‡…–‹‘ʹ͵͵‘ˆ–Š‡‘’ƒ‹‡•…–ǡͳͻͷ͸ƒŽ•‘–Š‡”‡’‘”–—†‡”–Šƒ–
•‡…–‹‘Ǥ
ȋˆȌ ™Š‡”‡”‡‰—Žƒ”ƒ……‘—–•ƒ”‡‘–ƒ‹–ƒ‹‡†„›–Š‡ƒ••‡••‡‡ǡ–Š‡”‡–—”‹•ƒ……‘’ƒ‹‡†„›ƒ•–ƒ–‡‡–
‹†‹…ƒ–‹‰–Š‡ƒ‘—–•‘ˆ–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•ǡ‰”‘••’”‘ϐ‹–ǡ‡š’‡•‡•ƒ†‡–’”‘ϐ‹–‘ˆ–Š‡„—•‹‡••
‘”’”‘ˆ‡••‹‘ƒ†–Š‡„ƒ•‹•‘ˆ™Š‹…Š•—…Šƒ‘—–•Šƒ˜‡„‡‡…‘’—–‡†ǡƒ†ƒŽ•‘†‹•…Ž‘•‹‰–Š‡ƒ‘—–•
‘ˆ–‘–ƒŽ•—†”›†‡„–‘”•ǡ•—†”›…”‡†‹–‘”•ǡ•–‘…Ǧ‹Ǧ–”ƒ†‡ƒ†…ƒ•Š„ƒŽƒ…‡ƒ•ƒ––Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ

Note ǣƒ›‘ˆ–Š‡ƒ„‘˜‡’ƒ”–‹…—Žƒ”•ƒ”‡‘™”‡“—‹”‡†–‘„‡‹…‘”’‘”ƒ–‡†ƒ•’ƒ”–‘ˆ–Š‡”‡Ž‡˜ƒ–”‡–—”ˆ‘”ǡˆ‘”
‡šƒ’Ž‡†‡–ƒ‹Ž•‘ˆ–ƒš†‡†—…–‡†ƒ–•‘—”…‡ǡƒ‘—–‘ˆ–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•‡–…Ǥ
”‡–—”‘ˆ‹…‘‡‹•”‡‰ƒ”†‡†ƒ•†‡ˆ‡…–‹˜‡—Ž‡••–Š‡•‡Žˆƒ••‡••‡––ƒš–‘‰‡–Š‡”™‹–Š‹–‡”‡•–ǡ‹ˆƒ›ǡ’ƒ›ƒ„Ž‡‹
ƒ……‘”†ƒ…‡™‹–Š•‡…–‹‘ͳͶͲŠƒ•„‡‡’ƒ‹†‘‘”„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ”‡–—”Ǥ
‡…–‹‘ͳ͵ͻȋͻȌ‘ˆ–Š‡…–Šƒ•„‡‡ƒ‡†‡†–‘’”‘˜‹†‡–Šƒ–ƒ”‡–—”™Š‹…Š‹•‘–Š‡”™‹•‡˜ƒŽ‹†™‘—Ž†‘–„‡–”‡ƒ–‡†
†‡ˆ‡…–‹˜‡ ‡”‡Ž› „‡…ƒ—•‡ •‡Žˆ ƒ••‡••‡– –ƒš ƒ† ‹–‡”‡•– ’ƒ›ƒ„Ž‡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘
ͳͶͲǡŠƒ•‘–„‡‡’ƒ‹†‘‘”„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ–Š‡”‡–—”Ǥ
‡…–‹‘ͳ͵ͻȋͻȌ™Š‹…Š”‡Žƒ–‡•–‘…ƒ•‡•ȋƒ•‡–‹‘‡†ƒ„‘˜‡’‘‹–‘Ǥƒ–‘ˆȌ™Š‡”‡–Š‡‡–—”‘ˆ‹…‘‡™‘—Ž†„‡
…‘•‹†‡”‡†ƒ•†‡ˆ‡…–‹˜‡ǡ•‘ƒ•–‘‰”ƒ––Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•ȋȌǡ–Š‡’‘™‡”•–‘†‡…Žƒ”‡•—…Š…Žƒ••‡•
‘ˆƒ••‡••‡‡•ƒ•‡š…Ž—†‡†‘”‡š…Ž—†‡†™‹–Š‘†‹ϐ‹…ƒ–‹‘•ƒ•–Š‡…ƒ•‡ƒ›„‡ǡˆ”‘–Š‡•ƒ‹†…‘†‹–‹‘•—†‡”™Š‹…Šƒ
”‡–—”‘ˆ‹…‘‡ƒ›„‡…‘•‹†‡”‡†ƒ•ƒ†‡ˆ‡…–‹˜‡”‡–—”Ǥ[Amended vide Finance Act, 2021]

SIGNING OF RETURNS [SECTION 140]

Š‡”‡–—”‘ˆ‹…‘‡—•–„‡˜‡”‹ϐ‹‡†ǣ
ȋƒȌ –Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ
ȋ‹Ȍ „›–Š‡‹†‹˜‹†—ƒŽŠ‹•‡ŽˆǢ
ȋ‹‹Ȍ ™Š‡”‡Š‡‹•ƒ„•‡–ˆ”‘†‹ƒǡ„›–Š‡‹†‹˜‹†—ƒŽŠ‹•‡Žˆ‘”„›•‘‡’‡”•‘†—Ž›ƒ—–Š‘”‹•‡†„›Š‹
‹–Š‹•„‡ŠƒŽˆǢ
ȋ‹‹‹Ȍ ™Š‡”‡ Š‡ ‹• ‡–ƒŽŽ› ‹…ƒ’ƒ…‹–ƒ–‡† ˆ”‘ ƒ––‡†‹‰ –‘ Š‹• ƒˆˆƒ‹”•ǡ „› Š‹• ‰—ƒ”†‹ƒ ‘” ƒ› ‘–Š‡”
’‡”•‘…‘’‡–‡––‘ƒ…–‘Š‹•„‡ŠƒŽˆǢƒ†
 548 Lesson 9 Ȉ EP-TL

ȋ‹˜Ȍ ™Š‡”‡ǡˆ‘”ƒ›‘–Š‡””‡ƒ•‘ǡ‹–‹•‘–’‘••‹„Ž‡ˆ‘”–Š‡‹†‹˜‹†—ƒŽ–‘˜‡”‹ˆ›–Š‡”‡–—”ǡ„›ƒ›’‡”•‘
†—Ž›ƒ—–Š‘”‹•‡†„›Š‹‹–Š‹•„‡ŠƒŽˆǣ
 ”‘˜‹†‡†–Šƒ–‹ƒ…ƒ•‡”‡ˆ‡””‡†–‘‹—„Ǧ…Žƒ—•‡ȋ‹‹Ȍ‘”ȋ‹˜Ȍǡ–Š‡’‡”•‘˜‡”‹ˆ›‹‰–Š‡”‡–—”Š‘Ž†•ƒ
˜ƒŽ‹†’‘™‡”‘ˆƒ––‘”‡›ˆ”‘–Š‡‹†‹˜‹†—ƒŽ–‘†‘•‘ǡ™Š‹…Š•ŠƒŽŽ„‡ƒ––ƒ…Š‡†–‘–Š‡”‡–—”ǣ
ȋ„Ȍ ‹–Š‡…ƒ•‡‘ˆƒǤǤ Ǥ„›–Š‡ƒ”–ƒǡƒ†ǡ™Š‡”‡–Š‡ƒ”–ƒ‹•ƒ„•‡–ˆ”‘†‹ƒ‘”‡–ƒŽŽ›‹…ƒ’ƒ…‹–ƒ–‡†
ˆ”‘ƒ––‡†‹‰–‘Š‹•ƒˆˆƒ‹”•ǡ„›ƒ›‘–Š‡”ƒ†—Ž–‡„‡”‘ˆ•—…Šˆƒ‹Ž›Ǣ
ȋ…Ȍ ‹–Š‡…ƒ•‡‘ˆƒŽ‘…ƒŽƒ—–Š‘”‹–›ǡ–Š‡”‹…‹’ƒŽˆϐ‹…‡”–Š‡”‡‘ˆǢ
ȋ†Ȍ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ ϐ‹”ǡ „› ƒƒ‰‹‰ ’ƒ”–‡” –Š‡”‡‘ˆ ‘” ™Š‡”‡ ˆ‘” ƒ› —ƒ˜‘‹†ƒ„Ž‡ …‹”…—•–ƒ…‡• •—…Š
ƒƒ‰‹‰’ƒ”–‡”‹•‘–ƒ„Ž‡–‘˜‡”‹ˆ›–Š‡”‡–—”ǡ‘”™Š‡”‡–Š‡”‡‹•‘ƒƒ‰‹‰’ƒ”–‡”ƒ••—…Šǡ„›ƒ›
’ƒ”–‡”–Š‡”‡‘ˆǡ‘–„‡‹‰ƒ‹‘”Ǣ
ȋ‡Ȍ ‹–Š‡…ƒ•‡‘ˆƒŽ‹‹–‡†Ž‹ƒ„‹Ž‹–›’ƒ”–‡”•Š‹’ǡ„›–Š‡†‡•‹‰ƒ–‡†’ƒ”–‡”–Š‡”‡‘ˆǡ‘”™Š‡”‡ˆ‘”ƒ›—ƒ˜‘‹†ƒ„Ž‡
”‡ƒ•‘•—…Š†‡•‹‰ƒ–‡†’ƒ”–‡”‹•‘–ƒ„Ž‡–‘˜‡”‹ˆ›–Š‡”‡–—”ǡ‘”™Š‡”‡–Š‡”‡‹•‘†‡•‹‰ƒ–‡†’ƒ”–‡”ƒ•
•—…Šǡ„›ƒ›’ƒ”–‡”Ǣ
ȋˆȌ ‹–Š‡…ƒ•‡‘ˆƒ›‘–Š‡”ƒ••‘…‹ƒ–‹‘ǡ„›ƒ›‡„‡”‘ˆ–Š‡ƒ••‘…‹ƒ–‹‘‘””‹…‹’ƒŽˆϐ‹…‡”–Š‡”‡‘ˆǢ
ȋ‰Ȍ ‹–Š‡…ƒ•‡‘ˆƒ›‘–Š‡”’‡”•‘ǡ„›–Šƒ–’‡”•‘‘”•‘‡’‡”•‘…‘’‡–‡––‘ƒ…–‘Š‹•„‡ŠƒŽˆǢ
ȋŠȌ ‹–Š‡…ƒ•‡‘ˆƒ…‘’ƒ›Ǣ„›–Š‡ƒƒ‰‹‰†‹”‡…–‘”–Š‡”‡‘ˆǡ‘”™Š‡”‡ˆ‘”ƒ›—ƒ˜‘‹†ƒ„Ž‡”‡ƒ•‘•—…Š
ƒƒ‰‹‰†‹”‡…–‘”‹•‘–ƒ„Ž‡–‘˜‡”‹ˆ›–Š‡”‡–—”‘”™Š‡”‡–Š‡”‡‹•‘ƒƒ‰‹‰†‹”‡…–‘”ǡ„›ƒ›†‹”‡…–‘”
–Š‡”‡‘ˆǤ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡…‘’ƒ›‹•‘–”‡•‹†‡–‹†‹ƒǡ–Š‡”‡–—”ƒ›„‡˜‡”‹ϐ‹‡†„›ƒ’‡”•‘™Š‘Š‘Ž†•ƒ
˜ƒŽ‹†’‘™‡”‘ˆƒ––‘”‡›ˆ”‘•—…Š…‘’ƒ›–‘†‘•‘ǡ™Š‹…Š•ŠƒŽŽ„‡ƒ––ƒ…Š‡†–‘–Š‡”‡–—”ǣ
•‘Ž˜‡…›’”‘ˆ‡••‹‘ƒŽ–‘˜‡”‹ˆ›–Š‡”‡–—”‘ˆ‹…‘‡™Š‡”‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”‘”’‘”ƒ–‡•‘Ž˜‡…›Šƒ•„‡‡ƒ†‹––‡†Ǥ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–Ȃ
ȋƒȌ ™Š‡”‡–Š‡…‘’ƒ›‹•„‡‹‰™‘—†—’ǡ™Š‡–Š‡”—†‡”–Š‡‘”†‡”‘ˆƒ…‘—”–‘”‘–Š‡”™‹•‡ǡ‘”™Š‡”‡ƒ›
’‡”•‘Šƒ•„‡‡ƒ’’‘‹–‡†ƒ•–Š‡”‡…‡‹˜‡”‘ˆƒ›ƒ••‡–•‘ˆ–Š‡…‘’ƒ›ǡ–Š‡”‡–—”•ŠƒŽŽ„‡˜‡”‹ϐ‹‡†„›–Š‡
Ž‹“—‹†ƒ–‘””‡ˆ‡””‡†–‘‹—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͳ͹ͺǢ
ȋ„Ȍ ™Š‡”‡ –Š‡ ƒƒ‰‡‡– ‘ˆ –Š‡ …‘’ƒ› Šƒ• „‡‡ –ƒ‡ ‘˜‡” „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ‘” ƒ› –ƒ–‡

‘˜‡”‡–—†‡”ƒ›Žƒ™ǡ–Š‡”‡–—”‘ˆ–Š‡…‘’ƒ›•ŠƒŽŽ„‡˜‡”‹ϐ‹‡†„›–Š‡”‹…‹’ƒŽˆϐ‹…‡”–Š‡”‡‘ˆǢ
ȋ‹Ȍ ‹–Š‡…ƒ•‡‘ˆƒ’‘Ž‹–‹…ƒŽ’ƒ”–›”‡ˆ‡””‡†Ǧ–‘‹—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ‡…–‹‘ͳ͵ͻǡ„›–Š‡Š‹‡ˆš‡…—–‹˜‡
ˆϐ‹…‡”‘ˆ•—…Š’ƒ”–›™Š‡–Š‡”•—…ŠŠ‹‡ˆš‡…—–‹˜‡ˆϐ‹…‡”‹•‘™ƒ••‡…”‡–ƒ”›‘”„›ƒ›‘–Š‡”
†‡•‹‰ƒ–‹‘Ǥ

Scheme to facilitate submission of returns through tax return preparers [Section 139B]
‡…–‹‘ͳ͵ͻ’”‘˜‹†‡•–Šƒ–ˆ‘”–Š‡’—”’‘•‡‘ˆ‡ƒ„Ž‹‰ƒ›•’‡…‹ϐ‹‡†…Žƒ••‘”…Žƒ••‡•‘ˆ’‡”•‘•–‘’”‡’ƒ”‡ƒ†
ˆ—”‹•Š”‡–—”•‘ˆ‹…‘‡ǡ–Š‡‘ƒ”†ƒ›ǡ„›™ƒ›‘ˆ‘–‹ϐ‹…ƒ–‹‘ǡˆ”ƒ‡ƒ•…Š‡‡’”‘˜‹†‹‰–Šƒ–•—…Š’‡”•‘•ƒ›
ˆ—”‹•Š–Š‡‹””‡–—”•‘ˆ‹…‘‡–Š”‘—‰Šƒƒš”‡–—”’”‡’ƒ”‡”ƒ—–Š‘”‹œ‡†–‘ƒ…–ƒ••—…Š—†‡”–Š‡•…Š‡‡ǤŠ‹•
•…Š‡‡‹•‘–ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ƒ…‘’ƒ›‘”ƒ’‡”•‘™Š‘‹•”‡“—‹”‡†–‘—†‡”‰‘ƒǮ–ƒšƒ—†‹–ǯ‘”Ǯƒ—†‹–—†‡”ƒ›
‘–Š‡”Žƒ™ǯǤ
–Šƒ•„‡‡ˆ—”–Š‡”’”‘˜‹†‡†–Šƒ––Š‡…Š‡‡ˆ”ƒ‡†—†‡”–Š‡•ƒ‹†•‡…–‹‘•ŠƒŽŽ•’‡…‹ˆ›–Š‡ƒ‡”‹™Š‹…Š–Š‡
ƒš”‡–—”’”‡’ƒ”‡”•ŠƒŽŽƒ••‹•––Š‡’‡”•‘•ˆ—”‹•Š‹‰–Š‡”‡–—”‘ˆ‹…‘‡ǡƒ†•ŠƒŽŽƒŽ•‘ƒˆϐ‹šŠ‹••‹‰ƒ–—”‡‘
•—…Š”‡–—”Ǥ
ƒš”‡–—”’”‡’ƒ”‡”ƒ›„‡ƒ‹†‹˜‹†—ƒŽ‘–Š‡”–Šƒƒ’‡”•‘”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‹‹Ȍ‘”…Žƒ—•‡ȋ‹‹‹Ȍ‘”…Žƒ—•‡‘ˆ
•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ʹͺͺ‘”ƒ‡’Ž‘›‡‡‘ˆ–Š‡•’‡…‹ϐ‹‡†…Žƒ••‘”…Žƒ••‡•‘ˆ’‡”•‘•ǡ™Š‘Šƒ•„‡‡ƒ—–Š‘”‹œ‡†
–‘ƒ…–ƒ•ƒƒš”‡–—”’”‡’ƒ”‡”—†‡”–Š‹•…Š‡‡Ǥ
‘–Š‡”™‘”†•ǡ–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•ƒ”‡‘–ƒ—–Š‘”‹œ‡†–‘ƒ…–ƒ•ƒš”‡–—”’”‡’ƒ”‡”ǣ
Ȉ ƒ›‘ˆϐ‹…‡”‘ˆƒ•…Š‡†—Ž‡†„ƒ‹™Š‹…Š–Š‡ƒ••‡••‡‡ƒ‹–ƒ‹•ƒ…—””‡–ƒ……‘—–‘”Šƒ•”‡‰—Žƒ”†‡ƒŽ‹‰•Ǥ
 Lesson 9 Ȉ Procedural Compliance 549

Ȉ Ž‡‰ƒŽ’”ƒ…–‹–‹‘‡”Ǣ‘”
Ȉ …Šƒ”–‡”‡†ƒ……‘—–ƒ–Ǥ

†—…ƒ–‹‘ƒŽ“—ƒŽ‹ϐ‹…ƒ–‹‘ˆ‘”ƒš‡–—””‡’ƒ”‡”•ȋȌ‘–‹ϐ‹‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘ǤͶȀʹͲͳͺǡ
dated 19- 01-2018 :
‹†‹˜‹†—ƒŽǡ™Š‘Š‘Ž†•ƒ„ƒ…Š‡Ž‘”†‡‰”‡‡ˆ”‘ƒ”‡…‘‰‹•‡††‹ƒ‹˜‡”•‹–›‘”‹•–‹–—–‹‘ǡ‘”Šƒ•’ƒ••‡†–Š‡
‹–‡”‡†‹ƒ–‡ Ž‡˜‡Ž ‡šƒ‹ƒ–‹‘ …‘†—…–‡† „› –Š‡ •–‹–—–‡ ‘ˆ Šƒ”–‡”‡† ……‘—–ƒ–• ‘ˆ †‹ƒ ‘” –Š‡ •–‹–—–‡ ‘ˆ
‘’ƒ›‡…”‡–ƒ”‹‡•‘ˆ†‹ƒ‘”–Š‡•–‹–—–‡‘ˆ‘•–……‘—–ƒ–•‘ˆ†‹ƒǡ•ŠƒŽŽ„‡‡Ž‹‰‹„Ž‡–‘ƒ…–ƒ•Ǥ
Š‡ …Š‡‡ ‘–‹ϐ‹‡† —†‡” –Š‡ •ƒ‹† •‡…–‹‘ •ŠƒŽŽ ’”‘˜‹†‡ –Š‡ ƒ‡” ‹ ™Š‹…Š ƒ ƒš ”‡–—” ’”‡’ƒ”‡” •ŠƒŽŽ „‡
ƒ—–Š‘”‹œ‡†ǡ–Š‡‡†—…ƒ–‹‘ƒŽƒ†‘–Š‡”“—ƒŽ‹ϐ‹…ƒ–‹‘•–‘„‡’‘••‡••‡†ǡƒ†–Š‡–”ƒ‹‹‰ƒ†‘–Š‡”…‘†‹–‹‘•”‡“—‹”‡†
–‘„‡ˆ—Žϐ‹ŽŽ‡†ǡ„›ƒ’‡”•‘–‘ƒ…–ƒ•ƒƒš”‡–—”’”‡’ƒ”‡”ǡ–Š‡…‘†‡‘ˆ…‘†—…–ˆ‘”–Š‡ƒš”‡–—”’”‡’ƒ”‡”ǡ–Š‡†—–‹‡•
ƒ†‘„Ž‹‰ƒ–‹‘•‘ˆ–Š‡ƒš”‡–—”’”‡’ƒ”‡”ǡ–Š‡ƒ‡”‹™Š‹…Š–Š‡ƒ—–Š‘”‹œƒ–‹‘ƒ›„‡™‹–Š†”ƒ™ƒ†ƒ›‘–Š‡”
ƒ––‡”™Š‹…Š‹•”‡“—‹”‡†–‘„‡‘”ƒ›„‡•’‡…‹ϐ‹‡†Ǥ
FEE AND INTEREST
Interest for belated payment of Income-Tax [Section 220(2)]
ƒ••‡••‡‡‹•Ž‹ƒ„Ž‡–‘’ƒ›‹–‡”‡•–̷ͳΨˆ‘”‡˜‡”›‘–Š‘”’ƒ”––Š‡”‡‘ˆ…‘’”‹•‡†‹–Š‡’‡”‹‘†‹–‡”˜‡‹‰
„‡–™‡‡–Š‡‡š’‹”›‘ˆ͵Ͳ†ƒ›•™Ǥ‡ǤˆǤ•‡”˜‹‰‘ˆ–Š‡‘–‹…‡‘ˆ†‡ƒ†ƒ†ƒ…–—ƒŽ’ƒ›‡–‘ˆ–ƒšˆ‘”–Š‡†‡Žƒ›‹
ƒ‹‰–Š‡’ƒ›‡–‘ˆ–ƒš†‡ƒ†‡†„‡›‘†͵Ͳ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ–Š‡†‡ƒ†‘–‹…‡Ǥ
—„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ ‡…–‹‘ ʹʹͲǡ ‡’‘™‡”• –Š‡ ‘ƒ”† –‘ ”‡†—…‡ ‘” ™ƒ‹˜‡ –Š‡ ƒ‘—– ‘ˆ ‹–‡”‡•– ’ƒ›ƒ„Ž‡ „› ƒ
ƒ••‡••‡‡—†‡”–Š‡ƒ„‘˜‡•‡…–‹‘‘–Š‡”‡…‘‡†ƒ–‹‘ƒ†‡„›–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹–Š‹•
„‡ŠƒŽˆǤŠ‡‘ƒ”†ǯ•‘”†‡”™‹ŽŽ„‡’ƒ••‡†‘Ž›—’‘•ƒ–‹•ˆƒ…–‹‘–Šƒ–ǣ
ȋƒȌ –Š‡’ƒ›‡–‘ˆ•—…Š‹–‡”‡•–Šƒ•…ƒ—•‡†‘”™‘—Ž†…ƒ—•‡‰‡—‹‡Šƒ”†•Š‹’–‘–Š‡ƒ••‡••‡‡Ǣ
ȋ„Ȍ –Š‡ †‡ˆƒ—Ž– ‹ –Š‡ ’ƒ›‡– ‘ˆ –Š‡ ƒ‘—– ‘ ™Š‹…Š ‹–‡”‡•– Šƒ• „‡‡ ’ƒ‹† ‘” ™ƒ• ’ƒ›ƒ„Ž‡ ™ƒ• †—‡ –‘
…‹”…—•–ƒ…‡•„‡›‘†–Š‡…‘–”‘Ž‘ˆ–Š‡ƒ••‡••‡‡Ǣƒ†
ȋ…Ȍ –Š‡ƒ••‡••‡‡Šƒ•…‘Ǧ‘’‡”ƒ–‡†‹ƒ›‡“—‹”›”‡Žƒ–‹‰–‘–Š‡ƒ••‡••‡–‘”ƒ›’”‘…‡‡†‹‰ˆ‘””‡…‘˜‡”›‘ˆ
ƒ›ƒ‘—–†—‡ˆ”‘Š‹Ǥ

”‘˜‹†‡†–Šƒ––Š‡‘”†‡”ƒ……‡’–‹‰‘””‡Œ‡…–‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘‘ˆ–Š‡ƒ••‡••‡‡ǡ‡‹–Š‡”‹ˆ—ŽŽ‘”‹’ƒ”–ǡ•ŠƒŽŽ„‡’ƒ••‡†
™‹–Š‹ƒ’‡”‹‘†‘ˆ–™‡Ž˜‡‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘‹•”‡…‡‹˜‡†Ǥ —”–Š‡”‘‘”†‡”
”‡Œ‡…–‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘ǡ‡‹–Š‡”‹ˆ—ŽŽ‘”‹’ƒ”–ǡ•ŠƒŽŽ„‡’ƒ••‡†—Ž‡••–Š‡ƒ••‡••‡‡Šƒ•„‡‡‰‹˜‡ƒ‘’’‘”–—‹–›
‘ˆ„‡‹‰Š‡ƒ”†Ǥ
Interest for default in furnishing Return of Income [Section 234A]
…ƒ•‡•™Š‡”‡ƒ”‡–—”‘‹…‘‡‹•ˆ—”‹•Š‡†ƒˆ–‡”–Š‡†—‡†ƒ–‡‘”‹•‘–ˆ—”‹•Š‡†ƒ–ƒŽŽǡ–Š‡ƒ••‡••‡‡Šƒ•–‘’ƒ›
•‹’Ž‡‹–‡”‡•–ƒ––Š‡”ƒ–‡‘ˆͳΨ’‡”…‡–ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆ–Š‡‘–Š‘ˆ†‡ˆƒ—Ž–‘–Š‡ƒ‘—–‘ˆ–ƒš‘
–Š‡–‘–ƒŽ‹…‘‡ƒ•†‡–‡”‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͳͶ͵ǡƒ†™Š‡”‡ƒ”‡‰—Žƒ”ƒ••‡••‡–‹•ƒ†‡ǡ‘
–Š‡ƒ‘—–‘ˆ–Š‡–ƒš‘”–Š‡–‘–ƒŽ‹…‘‡†‡–‡”‹‡†—†‡””‡‰—Žƒ”ƒ••‡••‡–‘””‡†—…‡†„›ƒƒ‘—–‘ˆȋͳȌ
ƒ†˜ƒ…‡–ƒš‹ˆ’ƒ‹†ǢȋʹȌƒ›ȀǢȋ͵Ȍƒ›”‡Ž‹‡ˆ—†‡”‡…–‹‘•ͻͲǡͻͲǢȋͶȌƒ›†‡†—…–‹‘—†‡”‡…–‹‘•ͻͳǢ
ȋͷȌƒ›–ƒš…”‡†‹–—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳͳͷ ȋ͸Ȍ‡Ž‹‡ˆȀ•ͺͻǤ
Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡‹–‡”‡•–‹•’ƒ›ƒ„Ž‡…‘‡…‡•ˆ”‘–Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡†—‡†ƒ–‡ˆ‘”ϐ‹Ž‹‰
–Š‡”‡–—”ƒ†‡†‹‰‘–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ–Š‡”‡–—”ǤŠ‡”‡–Š‡”‡–—”‹•‘–ˆ—”‹•Š‡†ǡ–Š‡‹–‡”‡•–™‹ŽŽ„‡
’ƒ›ƒ„Ž‡ˆ”‘–Š‡†—‡†ƒ–‡ˆ‘”ϐ‹Ž‹‰–Š‡”‡–—”–‹ŽŽ–Š‡†ƒ–‡‘ˆ…‘’Ž‡–‹‘‘ˆƒ••‡••‡–Ǥ
Interest for default in payment of Advance Tax [Section 234B]
Š‡”‡–Š‡ƒ••‡••‡‡ǡŽ‹ƒ„Ž‡–‘’ƒ›ƒ†˜ƒ…‡–ƒšǡŠƒ•‘–”‡‹––‡†–Š‡•ƒ‡‘”™Š‡”‡–Š‡ƒ†˜ƒ…‡–ƒš’ƒ‹†‹•Ž‡••–Šƒ
ͻͲΨ‘ˆƒ••‡••‡†–ƒšǤ
‡Šƒ•–‘’ƒ›•‹’Ž‡‹–‡”‡•–‘ƒ••‡••‡†–ƒš‡ƒ•–Š‡–ƒš‘–Š‡–‘–ƒŽ‹…‘‡†‡–‡”‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ
‘ˆ•‡…–‹‘ͳͶ͵ƒ†™Š‡”‡ƒ”‡‰—Žƒ”ƒ••‡••‡–‹•ƒ†‡ǡ–Š‡–ƒš‘–Š‡–‘–ƒŽ‹…‘‡†‡–‡”‹‡†—†‡”•—…Š”‡‰—Žƒ”
 550 Lesson 9 Ȉ EP-TL

ƒ••‡••‡–ƒ•”‡†—…‡†„›–Š‡ƒ‘—–‘ˆȋͳȌƒ†˜ƒ…‡–ƒšǡ‹ˆƒ›’ƒ‹†ǢȋʹȌƒ›ȀǢȋ͵Ȍƒ›”‡Ž‹‡ˆ—†‡”‡…–‹‘•
ͻͲǡͻͲǢȋͶȌƒ›†‡†—…–‹‘—†‡”‡…–‹‘ͻͳǢȋͷȌƒ›–ƒš…”‡†‹–—†‡”’”‘˜‹•‹‘‘ˆ‡…–‹‘ͳͳͷ ȋ͸Ȍ‡Ž‹‡ˆȀ•ͺͻ
̷ͳΨ’‡”…‡–ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆ‘–Šˆ”‘ͳ•–†ƒ›’”‹Ž‡š–ˆ‘ŽŽ‘™‹‰•—…Šϐ‹ƒ…‹ƒŽ›‡ƒ”–‘–Š‡†ƒ–‡‘ˆ
†‡–‡”‹ƒ–‹‘‘ˆ–‘–ƒŽ‹…‘‡—†‡”•‡…–‹‘ͳͶ͵ȋͳȌƒ†™Š‡”‡ƒ”‡‰—Žƒ”ƒ••‡••‡–‹•ƒ†‡ǡ–‘–Š‡†ƒ–‡‘ˆ•—…Š
”‡‰—Žƒ”ƒ••‡••‡–Ǥ
…ƒ•‡•™Š‡”‡–Š‡ƒ••‡••‡‡Šƒ•’ƒ‹†–ƒš‘–Š‡„ƒ•‹•‘ˆ•‡Žˆƒ••‡••‡–—†‡”‡…–‹‘ͳͶͲǡ„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆ
…‘’Ž‡–‹‘‘ˆƒ”‡‰—Žƒ”ƒ••‡••‡–ǡ–Š‡‹–‡”‡•–‹•…ƒŽ…—Žƒ–‡†‘ƒ„‘˜‡„ƒ•‹•—’–‘–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ–ƒš—†‡”
‡…–‹‘ͳͶͲƒ†ǡ–Š‡–Š‡”‡ƒˆ–‡”ǡ‘–Š‡ƒ‘—–„›™Š‹…Š–Š‡ƒ†˜ƒ…‡–ƒšƒ†–ƒš’ƒ‹†—†‡”‡…–‹‘ͳͶͲˆƒŽŽ•Š‘”–
‘ˆƒ†˜ƒ…‡–ƒšǤ
–Š‡…ƒ•‡•‘ˆ‡Šƒ…‡‡–‘””‡†—…–‹‘‘ˆ–Š‡ƒ‘—–‘™Š‹…Š‹–‡”‡•–™ƒ•’ƒ›ƒ„Ž‡—†‡”‡…–‹‘ͳͶ͹ȋ‹…‘‡
‡•…ƒ’‹‰ƒ••‡••‡–Ȍ‘”‡…–‹‘ͳͷ͵Ǣ‡…–‹‘ͳͷͶȋ”‡…–‹ϐ‹…ƒ–‹‘‘ˆ‹•–ƒ‡ȌǢ‡…–‹‘ͳͷͷȋ‘–Š‡”ƒ‡†‡–•‘
…‘’Ž‡–‡†ƒ••‡••‡–‘ˆƒ’ƒ”–‡”‹ƒϐ‹”Ǣ‡„‡”‘ˆƒ‘”„‘†›‘ˆ‹†‹˜‹†—ƒŽ•‡–…ǤȌǢ‡…–‹‘ʹͷͲȋƒ’’‡ƒŽȌǢ
‡…–‹‘ʹͷͶȋ‘”†‡”•‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽȌǢ‡…–‹‘ʹ͸Ͳȋ‡…‹•‹‘‘ˆ‹‰Š‘—”–‘”—’”‡‡‘—”–‘–Š‡…ƒ•‡
•–ƒ–‡†Ǣ‡…–‹‘ʹ͸ʹȋŠ‡ƒ”‹‰„‡ˆ‘”‡—’”‡‡‘—”–ȌǢ‡…–‹‘ʹ͸͵ȋ”‡˜‹•‹‘‘ˆ‘”†‡”•’”‡Œ—†‹…‹ƒŽ–‘”‡˜‡—‡ȌǢ‡…–‹‘
ʹ͸Ͷ ȋ‡˜‹•‹‘ ‘ˆ ‘”†‡”•ȌǢ ‘” ʹͶͷȋͶȌ ȏ‘”†‡” ‘ˆ –Š‡ ‡––Ž‡‡– ‘‹••‹‘ǡ –Š‡ ‹–‡”‡•– •ŠƒŽŽ „‡ ‹…”‡ƒ•‡† ‘”
”‡†—…‡†…‘””‡•’‘†‹‰Ž›ǤŠ‡”‡–Š‡‹–‡”‡•–Šƒ•ƒŽ”‡ƒ†›„‡‡’ƒ‹†–‘–Š‡ƒ••‡••‡‡ǡƒ‘–‹…‡‘ˆ†‡ƒ†ǡ…ƒŽŽ‹‰ˆ‘”
’ƒ›‡–‘ˆ•—…Šƒ‘—–ǡŠƒ•–‘„‡•‡”˜‡†‘–Š‡ƒ••‡••‡‡„›–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ—…Š‘–‹…‡‘ˆ†‡ƒ†•ŠƒŽŽ„‡
†‡‡‡†–‘„‡ƒ‘”†‡”—†‡”‡…–‹‘ͳͷ͸‘ˆ–Š‡…–Ǥ

Interest for deferment of Advance Tax [Section 234C]

ˆ–Š‡ƒ••‡••‡‡™Š‘‹•Ž‹ƒ„Ž‡–‘’ƒ›ƒ†˜ƒ…‡–ƒš—†‡”‡…–‹‘ʹͲͺŠƒ•ˆƒ‹Ž‡†–‘’ƒ›•—…Š–ƒš‘”Šƒ•—†‡”‡•–‹ƒ–‡†
–Š‡‹•–ƒŽ‡–•‘ˆƒ†˜ƒ…‡–ƒšǡŠ‡Šƒ•–‘’ƒ›‹–‡”‡•–ƒ•ˆ‘ŽŽ‘™•ǣ
ȋ‹Ȍ ˆƒ†˜ƒ…‡–ƒš’ƒ‹†‘‘”„‡ˆ‘”‡ͳͷ —‡‹•Ž‡••–ŠƒͳͷΨ‘ˆ–ƒš†—‡‘–‘–ƒŽ‹…‘‡†‡…Žƒ”‡†‹–Š‡”‡–—”‘”
ˆƒ†˜ƒ…‡–ƒš’ƒ‹†‘‘”„‡ˆ‘”‡ͳͷ‡’–‡„‡”‹•Ž‡••–ŠƒͶͷΨ‘ˆ–ƒš†—‡‘–‘–ƒŽ‹…‘‡†‡…Žƒ”‡†‹–Š‡
”‡–—”ϐ‹Ž‡†„›–Š‡ƒ••‡••‡‡‘”ˆƒ†˜ƒ…‡–ƒš’ƒ‹†‘‘”„‡ˆ‘”‡ͳͷ‡…‡„‡”‹•Ž‡••–Šƒ͹ͷΨ‘ˆ–ƒš†—‡‘
–‘–ƒŽ‹…‘‡†‡…Žƒ”‡†‹–Š‡”‡–—”–Š‡ƒ••‡••‡‡•ŠƒŽŽ’ƒ›•‹’Ž‡‹–‡”‡•–̷ͳΨ’‡”‘–Šˆ‘”ƒ’‡”‹‘†‘ˆ
–Š”‡‡‘–Š•‘–Š‡ƒ‘—–‘ˆ–Š‡•Š‘”–ˆƒŽŽˆ”‘ͳͷΨǡͶͷΨǡƒ†͹ͷΨ‘ˆ–Š‡–ƒš†—‡‘–Š‡”‡–—”‡†‹…‘‡Ǥ
ȋ‹‹Ȍ ˆƒ†˜ƒ…‡–ƒš’ƒ‹†‘‘”„‡ˆ‘”‡ƒ”…Šͳͷ‹•Ž‡••–ŠƒͳͲͲΨ‘ˆ–ƒš†—‡‘–‘–ƒŽ‹…‘‡†‡…Žƒ”‡†‹–Š‡”‡–—”ǡ
ƒ•”‡†—…‡†„›–ƒš†‡†—…–‡†ƒ–•‘—”…‡ǡ•‹’Ž‡‹–‡”‡•–‹•’ƒ›ƒ„Ž‡̷ͳΨ’‡”‘–Š‘–Š‡ƒ‘—–‘ˆ•Š‘”–ˆƒŽŽ
ˆ”‘–Š‡–ƒš†—‡‘–Š‡”‡–—”‡†‹…‘‡†‡…Žƒ”‡†Ǥ
 ”‘˜‹†‡†–Šƒ–‹ˆ–Š‡ƒ†˜ƒ…‡–ƒš’ƒ‹†„›–Š‡ƒ••‡••‡‡‘–Š‡…—””‡–‹…‘‡ǡ‘‘”„‡ˆ‘”‡–Š‡ͳͷ–Š†ƒ›‘ˆ —‡
‘”–Š‡ͳͷ–Š†ƒ›‘ˆ‡’–‡„‡”ǡ‹•‘–Ž‡••–ŠƒͳͷΨ‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡͶͷΨ‘ˆ–Š‡–ƒš†—‡‘–Š‡”‡–—”‡†
‹…‘‡ǡ–Š‡ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽ‘–„‡Ž‹ƒ„Ž‡–‘’ƒ›ƒ›‹–‡”‡•–‘–Š‡ƒ‘—–‘ˆ–Š‡•Š‘”–ˆƒŽŽ‘–Š‘•‡†ƒ–‡•Ǥ
‡Ž‹‰‹„Ž‡ƒ••‡••‡‡‹”‡•’‡…–‘ˆ–Š‡‡Ž‹‰‹„Ž‡„—•‹‡••”‡ˆ‡””‡†–‘‹•‡…–‹‘ͶͶǡ™Š‘‹•Ž‹ƒ„Ž‡–‘’ƒ›ƒ†˜ƒ…‡–ƒš
—†‡”•‡…–‹‘ʹͲͺŠƒ•ˆƒ‹Ž‡†–‘’ƒ›•—…Š–ƒš‘”–Š‡ƒ†˜ƒ…‡–ƒš’ƒ‹†„›–Š‡ƒ••‡••‡‡‘‹–•…—””‡–‹…‘‡‘‘”
„‡ˆ‘”‡–Š‡ͳͷ–Š†ƒ›‘ˆƒ”…Š‹•Ž‡••–Šƒ–Š‡–ƒš†—‡‘–Š‡”‡–—”‡†‹…‘‡ǡ–Š‡ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›
•‹’Ž‡‹–‡”‡•–ƒ––Š‡”ƒ–‡‘ˆͳΨ‘–Š‡ƒ‘—–‘ˆ–Š‡•Š‘”–ˆƒŽŽˆ”‘–Š‡–ƒš†—‡‘–Š‡”‡–—”‡†‹…‘‡Ǥ

Amendment to Section 234C(1) ǣ  ”‡•’‡…– ‘ˆ ƒ ƒ••‡••‡‡ ȋ™Š‘ †‡…Žƒ”‡• Š‹• ‹…‘‡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š
’”‡•—’–‹˜‡–ƒšƒ–‹‘”‡‰‹‡—†‡”•‡…–‹‘ͶͶȌǡ‹–‡”‡•–—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡Ž‡˜‹‡†ǡ‹ˆ–Š‡ƒ†˜ƒ…‡–ƒš
’ƒ‹†‘‘”„‡ˆ‘”‡ƒ”…Šͳͷǡ‹•Ž‡••–Šƒ–Š‡–ƒš†—‡‘–Š‡”‡–—”‡†‹…‘‡Ǥ
Š‡ˆ‘ŽŽ‘™‹‰‡š’Žƒƒ–‹‘•ŠƒŽŽ„‡•—„•–‹–—–‡†™Ǥ‡ǤˆǤͳǤͶǤʹͲͲ͹ǡƒ‡Ž›ǣ
Dzš’Žƒƒ–‹‘ǣ–Š‹••‡…–‹‘Dz–ƒš†—‡‘–Š‡”‡–—”‡†‹…‘‡dz‡ƒ•–Š‡–ƒš…Šƒ”‰‡ƒ„Ž‡‘–Š‡–‘–ƒŽ‹…‘‡†‡…Žƒ”‡†
in the return of income furnished by the assessee for the assessment year commencing on the 1st day of April immediately
ˆ‘ŽŽ‘™‹‰–Š‡ϔ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡ƒ†˜ƒ…‡–ƒš‹•’ƒ‹†‘”’ƒ›ƒ„Ž‡ǡƒ•”‡†—…‡†„›–Š‡ƒ‘—–‘ˆǡǦȋͷȌƒ›Ȁ
ȋ͸Ȍƒ›”‡Ž‹‡ˆ‘ˆ–ƒš—†‡”‡…–‹‘ͿͶ‘”ͿͶȋ͹Ȍƒ›†‡†—…–‹‘—†‡”‡…–‹‘ͿͷȋͺȌƒ›–ƒš…”‡†‹–—Ȁ•ͷͷͻ Ǥdz
Provided–Šƒ–‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽƒ’’Ž›–‘ƒ›•Š‘”–ˆƒŽŽ‹–Š‡’ƒ›‡–‘ˆ–Š‡–ƒš†—‡‘–Š‡
”‡–—”‡†‹…‘‡™Š‡”‡•—…Š•Š‘”–ˆƒŽŽ‹•‘ƒ……‘—–‘ˆ—†‡”Ǧ‡•–‹ƒ–‡‘”ˆƒ‹Ž—”‡–‘‡•–‹ƒ–‡
 Lesson 9 Ȉ Procedural Compliance 551

ȋaȌ –Š‡ƒ‘—–‘ˆ…ƒ’‹–ƒŽ‰ƒ‹•Ǣ‘”
ȋbȌ ‹…‘‡‘ˆ–Š‡ƒ–—”‡”‡ˆ‡””‡†–‘‹•—„Ǧ…Žƒ—•‡ȋixȌ‘ˆ…Žƒ—•‡ȋ͸ͺȌ‘ˆ•‡…–‹‘ʹǢ‘”
ȋcȌ ‹…‘‡—†‡”–Š‡Š‡ƒ†Dz”‘ϐ‹–•ƒ†‰ƒ‹•‘ˆ„—•‹‡••‘”’”‘ˆ‡••‹‘dz‹…ƒ•‡•™Š‡”‡–Š‡‹…‘‡ƒ……”—‡•‘”
ƒ”‹•‡•—†‡”–Š‡•ƒ‹†Š‡ƒ†ˆ‘”–Š‡ϐ‹”•––‹‡Ǣ‘”
ȋdȌ ‹…‘‡‘ˆ–Š‡ƒ–—”‡”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͳͷǡ

ƒ†–Š‡ƒ••‡••‡‡Šƒ•’ƒ‹†–Š‡™Š‘Ž‡‘ˆ–Š‡ƒ‘—–‘ˆ–ƒš’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ‹…‘‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋaȌ‘”
…Žƒ—•‡ȋbȌ‘”…Žƒ—•‡ȋcȌ‘”…Žƒ—•‡ȋdȌǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡŠƒ†•—…Š‹…‘‡„‡‡ƒ’ƒ”–‘ˆ–Š‡–‘–ƒŽ‹…‘‡ǡƒ•’ƒ”–‘ˆ
–Š‡”‡ƒ‹‹‰‹•–ƒŽ‡–•‘ˆƒ†˜ƒ…‡–ƒš™Š‹…Šƒ”‡†—‡‘”™Š‡”‡‘•—…Š‹•–ƒŽ‡–•ƒ”‡†—‡ǡ„›–Š‡͵ͳ•–†ƒ›‘ˆ
ƒ”…Š‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ǣ
Fees for Delay in Furnishing Return of Income [Section 234F]
‘ŽŽ‘™‹‰ƒ”‡–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘Ǧ
ȋ‹Ȍ ˆ‡‡‘ˆ•ǤͷǡͲͲͲ•ŠƒŽŽ„‡Ž‡˜‹‡†‹ˆ‡–—”‘ˆ‹…‘‡‹•ϐ‹Ž‡†ƒˆ–‡”–Š‡†—‡†ƒ–‡‘ˆ”‡–—”—Ȁ•ͳ͵ͻȋͳȌ„—–‘
‘”„‡ˆ‘”‡͵ͳ•–‡…‡„‡”‘ˆ–Š‡••‡••‡–‡ƒ”Ǥ
ȋ‹‹Ȍ ˆ‡‡‘ˆ•ǤͳͲǡͲͲͲ•ŠƒŽŽ„‡’ƒ‹†‹…ƒ•‡”‡–—”‹•‘–ϐ‹Ž‡†—’Ǧ–‘͵ͳ•–‡…‡„‡”‘ˆ–Š‡••‡••‡–‡ƒ”Ǥ
ȋ‹‹‹Ȍ …ƒ•‡•™Š‡”‡–Š‡–‘–ƒŽ‹…‘‡†‘‡•‘–‡š…‡‡†•ͷǡͲͲǡͲͲͲǡ–Š‡ˆ‡‡ƒ‘—–•ŠƒŽŽ‘–‡š…‡‡†•ǤͳǡͲͲͲǤ

COLLECTION AND RECOVERY OF TAX

Notice of Demand [Section 156] [Rules 15, 38, Forms 7, 28]

Š‡ƒ›–ƒšǡ‹–‡”‡•–’‡ƒŽ–›ǡϐ‹‡‘”ƒ›‘–Š‡”•—‹•’ƒ›ƒ„Ž‡‹…‘•‡“—‡…‡‘ˆƒ›‘”†‡”’ƒ••‡†—†‡”–Š‹•…–ǡ
–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ•‡”˜‡—’‘–Š‡ƒ••‡••‡‡ƒ‘–‹…‡‘ˆ†‡ƒ†‹–Š‡’”‡•…”‹„‡†ˆ‘”•’‡…‹ˆ›‹‰–Š‡•—•‘
’ƒ›ƒ„Ž‡Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ›•—‹•†‡–‡”‹‡†–‘„‡’ƒ›ƒ„Ž‡„›–Š‡ƒ••‡••‡‡‘”ȏ–Š‡†‡†—…–‘”‘”–Š‡…‘ŽŽ‡…–‘”—†‡”
•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͶ͵‘”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͲͲ‘”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͲ͸Ȑǡ–Š‡‹–‹ƒ–‹‘
—†‡”–Š‘•‡•—„Ǧ•‡…–‹‘••ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ‘–‹…‡‘ˆ†‡ƒ†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘Ǥ
Intimation of loss [Section 157]
Š‡‹–Š‡…‘—”•‡‘ˆ–Š‡ƒ••‡••‡–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘ˆƒ›ƒ••‡••‡‡ǡ‹–‹•‡•–ƒ„Ž‹•Š‡†–Šƒ–ƒŽ‘••Šƒ•–ƒ‡’Žƒ…‡
™Š‹…Š –Š‡ ƒ••‡••‡‡ ‹• ‡–‹–Ž‡† –‘ Šƒ˜‡ …ƒ””‹‡† ˆ‘”™ƒ”† ƒ† •‡– ‘ˆˆ ƒ‰ƒ‹•– –Š‡ ‹…‘‡ ‹ •—„•‡“—‡– ›‡ƒ”•ǡ –Š‡
••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ‘–‹ˆ›–‘–Š‡ƒ••‡••‡‡„›ƒ‘”†‡”‹™”‹–‹‰–Š‡ƒ‘—–‘ˆ–Š‡Ž‘••ƒ•…‘’—–‡†„›Š‹ˆ‘”
–Š‡’—”’‘•‡•‘ˆ…ƒ””›ˆ‘”™ƒ”†ƒ†•‡–‘ˆˆǤ
Assessee in Default
Š‡ƒ‘—–•’‡…‹ϐ‹‡†‹–Š‡‘–‹…‡‘ˆ†‡ƒ†•ŠƒŽŽ„‡’ƒ‹†™‹–Š‹͵Ͳ†ƒ›•‘ˆ–Š‡•‡”˜‹…‡‘ˆ–Š‡‘–‹…‡ƒ––Š‡’Žƒ…‡
ƒ†–‘–Š‡’‡”•‘‡–‹‘‡†‹–Š‡‘–‹…‡Ǥˆ–Š‡••‡••‹‰ˆϐ‹…‡”Šƒ•ƒ›”‡ƒ•‘–‘„‡Ž‹‡˜‡–Šƒ–‹–™‹ŽŽ„‡†‡–”‹‡–ƒŽ
–‘”‡˜‡—‡‹ˆ–Š‡ˆ—ŽŽ’‡”‹‘†‘ˆ͵Ͳ†ƒ›•‹•ƒŽŽ‘™‡†Š‡ƒ›ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ–Š‡ ‘‹–‘‹••‹‘‡””‡†—…‡
–Š‡’‡”‹‘†ƒ•Š‡–Š‹•ϐ‹–ȋ‡…–‹‘ʹʹͲȌǤ
 552 Lesson 9 Ȉ EP-TL

ˆ–Š‡ƒ‘—–•’‡…‹ϐ‹‡†‹–Š‡‘–‹…‡‘ˆ†‡ƒ†‹•‘–’ƒ‹†™‹–Š‹–Š‡’‡”‹‘†‡–‹‘‡†‹–Š‡‘–‹…‡ǡ–Š‡ƒ••‡••‡‡
•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›•‹’Ž‡‹–‡”‡•–ƒ–‘‡’‡”…‡–ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆƒ‘–Š…‘’”‹•‡†‹–Š‡’‡”‹‘†
…‘‡…‹‰ˆ”‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‡‡†‘ˆ–Š‡͵Ͳ†ƒ›•‘”•Š‘”–‡”’‡”‹‘†ǡƒ•ƒŽŽ‘™‡†ǡƒ†‡†‹‰
™‹–Š–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ–Š‡–ƒšǤˆ–Š‡ƒ••‡••‡‡‹•‘–‹ƒ’‘•‹–‹‘–‘’ƒ›–Š‡ƒ‘—–‹–Š‡’”‡•…”‹„‡†–‹‡ǡŠ‡
ƒ›•—„‹–ƒƒ’’Ž‹…ƒ–‹‘–‘–Š‡••‡••‹‰ˆϐ‹…‡”„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡†—‡†ƒ–‡‘ˆ–Š‡’ƒ›‡–Ǥ”‡…‡‹’–‘ˆ
•—…Šƒ’’Ž‹…ƒ–‹‘ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›‡š–‡†–Š‡–‹‡ˆ‘”’ƒ›‡–‘”ƒŽŽ‘™’ƒ›‡–„›‹•–ƒŽ‡–•ǡ•—„Œ‡…–
–‘•—…Š…‘†‹–‹‘•ƒ•Š‡ƒ›–Š‹ϐ‹––‘‹’‘•‡Ǥˆ–Š‡ƒ‘—–‹•‘–’ƒ‹†ƒ•‡–‹‘‡†ƒ„‘˜‡ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡
†‡‡‡†–‘„‡‹†‡ˆƒ—Ž–ƒ†•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›‹ƒ††‹–‹‘–‘–Š‡ƒ‘—–‘ˆ–Š‡ƒ””‡ƒ”•ƒ†–Š‡ƒ‘—–‘ˆ‹–‡”‡•–ǡ
„›™ƒ›‘ˆ’‡ƒŽ–›•—…Šƒ‘—–ƒ•–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›†‹”‡…–Ǥ–Š‡…ƒ•‡‘ˆ…‘–‹—‹‰†‡ˆƒ—Ž–ǡŠ‡•ŠƒŽŽ„‡
Ž‹ƒ„Ž‡–‘’ƒ›•—…Šˆ—”–Š‡”ƒ‘—–ƒ•–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ǡˆ”‘–‹‡–‘–‹‡ǡ†‹”‡…–Ǥ‘™‡˜‡”ǡ–Š‡–‘–ƒŽƒ‘—–
‘ˆ’‡ƒŽ–›•ŠƒŽŽ‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ–ƒš‹ƒ””‡ƒ”•Ǥ
Š‡”‡ƒƒ••‡••‡‡‹•‹†‡ˆƒ—Ž–‘”‹•†‡‡‡†–‘„‡‹†‡ˆƒ—Ž–‹ƒ‹‰ƒ’ƒ›‡–‘ˆ–ƒšǡ–Š‡ƒš‡…‘˜‡”›ˆϐ‹…‡”
ƒ›†”ƒ™—’—†‡”Š‹••‹‰ƒ–—”‡ƒ•–ƒ–‡‡–‹–Š‡’”‡•…”‹„‡†ˆ‘”•’‡…‹ˆ›‹‰–Š‡ƒ‘—–‘ˆƒ””‡ƒ”•†—‡ˆ”‘–Š‡
ƒ••‡••‡‡ƒ†•ŠƒŽŽ’”‘…‡‡†–‘”‡…‘˜‡”ˆ”‘•—…Šƒ••‡••‡‡–Š‡ƒ‘—–•’‡…‹ϐ‹‡†‹–Š‡…‡”–‹ϐ‹…ƒ–‡ȋ„‡‹‰–Š‡•–ƒ–‡‡–
”‡ˆ‡””‡†–‘ƒ„‘˜‡Ȍ„›‘‡‘”‘”‡‘ˆ–Š‡‘†‡•‡–‹‘‡†„‡Ž‘™ǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”—Ž‡•Žƒ‹††‘™‹–Š‡
‡…‘†…Š‡†—Ž‡Ǥ
ȋȌ ƒ––ƒ…Š‡–ƒ†•ƒŽ‡‘ˆ–Š‡ƒ••‡••‡‡ǯ•‘˜ƒ„Ž‡‘”‹‘˜ƒ„Ž‡’”‘’‡”–›Ǣ
ȋ‹Ȍ ƒ””‡•–‘ˆ–Š‡ƒ••‡••‡‡ƒ†Š‹•†‡–‡–‹‘‹’”‹•‘Ǣƒ†
ȋ‹‹Ȍ ƒ’’‘‹–‹‰ƒ”‡…‡‹˜‡”ˆ‘”–Š‡ƒƒ‰‡‡–‘ˆ–Š‡ƒ••‡••‡‡ǯ•‘˜ƒ„Ž‡ƒ†‹‘˜ƒ„Ž‡’”‘’‡”–‹‡•
ȋ‡…–‹‘ʹʹʹȌǤ
ȋȌ Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒŽ•‘”‡…‘˜‡”–Š‡–ƒš„›ƒ›‘‡‘”‘”‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‘†‡•‘ˆ”‡…‘˜‡”›ǣ
ȋ‹Ȍ ƒ––ƒ…Š‡–‘ˆ•ƒŽƒ”›Ǣ
ȋ‹‹Ȍ ‰ƒ”‹•Š‡‡‘”†‡”ˆ”‘ƒ…‘—”–Ǣ
ȋ‹‹‹Ȍ •ƒŽ‡‘ˆ‘˜ƒ„Ž‡’”‘’‡”–›ȋ‡…–‹‘ʹʹ͸ȌǤ
ȋȌ Š”‘—‰Š–ƒ–‡
‘˜‡”‡–ȋ‡…–‹‘ʹʹ͹ȌǢ
ȋȌ ’—”•—ƒ…‡‘ˆƒ‰”‡‡‡–™‹–Šˆ‘”‡‹‰…‘—–”‹‡•ȋ‡…–‹‘ʹʹͺȌǢ
ȋȌ ›•—‹–‘”—†‡”‘–Š‡”Žƒ™ȋ‡…–‹‘ʹ͵ʹȌǤ

Note ǣ ‘”†‡–ƒ‹Ž•’Ž‡ƒ•‡”‡ˆ‡”–‘–Š‡”‡Ž‡˜ƒ–•‡…–‹‘•‘ˆ–Š‡…–Ǥ
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌǡ–Š‡”‹…‹’ƒŽŠ‹‡ˆ‘‹••‹‘‡”‘”Š‹‡ˆ‘‹••‹‘‡”
‘””‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›”‡†—…‡‘”™ƒ‹˜‡–Š‡ƒ‘—–‘ˆ‹–‡”‡•–’ƒ‹†‘”’ƒ›ƒ„Ž‡„›ƒ
ƒ••‡••‡‡—†‡”–Š‡•ƒ‹†•—„Ǧ•‡…–‹‘‹ˆŠ‡‹••ƒ–‹•ϐ‹‡†–Šƒ–Ǧ
ȋ‹Ȍ ’ƒ›‡–‘ˆ•—…Šƒ‘—–Šƒ•…ƒ—•‡†‘”™‘—Ž†…ƒ—•‡‰‡—‹‡Šƒ”†•Š‹’–‘–Š‡ƒ••‡••‡‡Ǣ
ȋ‹‹Ȍ †‡ˆƒ—Ž–‹–Š‡’ƒ›‡–‘ˆ–Š‡ƒ‘—–‘™Š‹…Š‹–‡”‡•–Šƒ•„‡‡’ƒ‹†‘”™ƒ•’ƒ›ƒ„Ž‡—†‡”–Š‡
•ƒ‹†•—„Ǧ•‡…–‹‘™ƒ•†—‡–‘…‹”…—•–ƒ…‡•„‡›‘†–Š‡…‘–”‘Ž‘ˆ–Š‡ƒ••‡••‡‡Ǣƒ†
ȋ‹‹‹Ȍ –Š‡ƒ••‡••‡‡Šƒ•…‘Ǧ‘’‡”ƒ–‡†‹ƒ›‹“—‹”›”‡Žƒ–‹‰–‘–Š‡ƒ••‡••‡–‘”ƒ›’”‘…‡‡†‹‰ˆ‘”–Š‡
”‡…‘˜‡”›‘ˆƒ›ƒ‘—–†—‡ˆ”‘Š‹Ǥ

”‘˜‹†‡†–Šƒ––Š‡‘”†‡”ƒ……‡’–‹‰‘””‡Œ‡…–‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘‘ˆ–Š‡ƒ••‡••‡‡ǡ‡‹–Š‡”‹ˆ—ŽŽ‘”‹’ƒ”–ǡ•ŠƒŽŽ„‡’ƒ••‡†
™‹–Š‹ƒ’‡”‹‘†‘ˆ–™‡Ž˜‡‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘‹•”‡…‡‹˜‡†ǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‘‘”†‡””‡Œ‡…–‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘ǡ‡‹–Š‡”‹ˆ—ŽŽ‘”‹’ƒ”–ǡ•ŠƒŽŽ„‡’ƒ••‡†—Ž‡••–Š‡ƒ••‡••‡‡
Šƒ•„‡‡‰‹˜‡ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ”‘˜‹†‡†ƒŽ•‘–Šƒ–™Š‡”‡ƒ›ƒ’’Ž‹…ƒ–‹‘‹•’‡†‹‰ƒ•‘–Š‡ͳ•–†ƒ›
‘ˆ —‡ǡʹͲͳ͸ǡ–Š‡‘”†‡”•ŠƒŽŽ„‡’ƒ••‡†‘‘”„‡ˆ‘”‡–Š‡͵ͳ•–†ƒ›‘ˆƒ›ǡʹͲͳ͹Ǥ
REFUNDS [SECTION 237 TO SECTION 245]
‡ˆ—†‡ƒ•Dz–‘”‡’ƒ›dz‘””‡•–‘”‡™Šƒ–™ƒ•–ƒ‡—†‡”–Š‡‹…‘‡Ǧ–ƒšŽƒ™Ǥ‡ˆ—†•ƒ”‹•‡‹–Š‘•‡…ƒ•‡•™Š‡”‡
–Š‡ƒ‘—–‘ˆ–ƒš’ƒ‹†„›ƒ’‡”•‘‘”‘Š‹•„‡ŠƒŽˆ‹•‰”‡ƒ–‡”–Šƒ–Š‡ƒ‘—–™‹–Š™Š‹…ŠŠ‡‹•’”‘’‡”Ž›…Šƒ”‰‡ƒ„Ž‡
ˆ‘”–Šƒ–›‡ƒ”Ǥ†‡”–Š‡ˆ‘ŽŽ‘™‹‰…‹”…—•–ƒ…‡•–Š‡”‡ˆ—†•ƒ›„‡…‘‡†—‡ǣ
 Lesson 9 Ȉ Procedural Compliance 553

ȋ‹Ȍ Š‡–ƒš†‡†—…–‡†ƒ–•‘—”…‡‹•Š‹‰Š‡”–Šƒ–Š‡ƒ‘—–‘ˆ–ƒš’ƒ›ƒ„Ž‡ǡƒ•†‡–‡”‹‡†‘”‡‰—Žƒ”ƒ••‡••‡–Ǣ
ȋ‹‹Ȍ Š‡ƒ‘—–‘ˆƒ†˜ƒ…‡–ƒš’ƒ‹†‘”–ƒš’ƒ‹†‘–Š‡„ƒ•‹•‘ˆ•‡ŽˆǦƒ••‡••‡–‡š…‡‡†•–Š‡–ƒš’ƒ›ƒ„Ž‡ƒ•
†‡–‡”‹‡†‘”‡‰—Žƒ”ƒ••‡••‡–Ǣ
ȋ‹‹‹Ȍ Š‡–ƒš†‡–‡”‹‡†ƒ†’ƒ‹†‘–Š‡„ƒ•‹•‘ˆ”‡‰—Žƒ”ƒ••‡••‡–‰‡–•”‡†—…‡†ƒ•ƒ”‡•—Ž–‘ˆ”‡…–‹ϐ‹…ƒ–‹‘‘ˆ
‹•–ƒ‡™Š‹…ŠŠƒ†…”‡’–‹–Š‡ƒ••‡••‡–‘”‹•”‡†—…‡†‹ƒ’’‡ƒŽ‘””‡˜‹•‹‘Ǣ
ȋ‹˜Ȍ Š‡•ƒ‡‹…‘‡‹•–ƒš‡†‹†‹ƒƒ†‹ƒˆ‘”‡‹‰…‘—–”›ƒ†–Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†–‘†‘—„Ž‡–ƒšƒ–‹‘”‡Ž‹‡ˆǤ

‘”…Žƒ‹‹‰”‡ˆ—†‹–‹•‡…‡••ƒ”›–Šƒ––Š‡‹…‘‡‹”‡•’‡…–‘ˆ™Š‹…Š”‡ˆ—†‘ˆ–ƒš‹•„‡‹‰…Žƒ‹‡†—•–Šƒ˜‡„‡‡
‹…Ž—†‡†‹Š‹•–‘–ƒŽ‹…‘‡ƒ•’‡”–Š‡”‡–—”‘ˆ…‘‡Ǥ
˜‡”›…Žƒ‹ˆ‘””‡ˆ—†—†‡”–Š‹•…Šƒ’–‡”•ŠƒŽŽ„‡ƒ†‡‹–Š‡’”‡•…”‹„‡† ‘”ȋ‘Ǥ͵ͲȌ™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡
Žƒ•–†ƒ›‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”–‘™Š‹…Š–Š‡…Žƒ‹‹•”‡Žƒ–‡†Ǥˆ–Š‡ƒ••‡••‡‡Šƒ•‘–ϐ‹Ž‡†–Š‡”‡–—”‘ˆ‹…‘‡Š‡
—•–ϐ‹Ž‡–Š‡”‡–—”ƒŽ‘‰™‹–Š–Š‡…‡”–‹ϐ‹…ƒ–‡‘ˆ–ƒš†‡†—…–‡†ƒ–•‘—”…‡ǡ…ŠƒŽŽƒ•ˆ‘”’ƒ›‡–‘ˆ–ƒšǡ•ƒŽƒ”›…‡”–‹ϐ‹…ƒ–‡
ƒ†Ȁ‘”–ƒš’ƒ‹†‹ƒˆ‘”‡‹‰…‘—–”›ǤŠ‡†‹˜‹†‡†™ƒ””ƒ–•ƒ†‘–Š‡”…‡”–‹ϐ‹…ƒ–‡•Š‘—Ž†„‡ϐ‹Ž‡†‹‘”‹‰‹ƒŽǡ†—Ž›
•‹‰‡†„›–Š‡ƒ••‡••‡‡ǡ–‘‡˜‹†‡…‡–Š‡‘™‡”•Š‹’‘ˆ•Šƒ”‡•‡–…Ǥǡˆ”‘™Š‹…Š–Š‡‹…‘‡‹•†‡”‹˜‡†Ǥˆǡˆ‘”•‘‡
”‡ƒ•‘ǡ–Š‡‘”‹‰‹ƒŽ…‡”–‹ϐ‹…ƒ–‡•ƒ”‡‘––”ƒ…‡ƒ„Ž‡ǡ†—’Ž‹…ƒ–‡•‹••—‡†„›–Š‡…‘…‡”‡†…‘’ƒ‹‡•ƒ›„‡ˆ—”‹•Š‡†Ǥ
‘™‡˜‡”ǡ‹•—…Š…ƒ•‡•ƒ‹†‡‹–›„‘†•–ƒ–‹‰–Šƒ––Š‡‘”‹‰‹ƒŽ…‡”–‹ϐ‹…ƒ–‡ƒ”‡‘––”ƒ…‡ƒ„Ž‡ƒ†‘”‡ˆ—†‹
”‡•’‡…–‘ˆ•—…Š™ƒ””ƒ–•Šƒ†ƒŽ”‡ƒ†›„‡‡…Žƒ‹‡†ǡ•Š‘—Ž†ƒŽ•‘ƒ……‘’ƒ›–Š‡…Žƒ‹Ǥ†‡‹–›„‘†•Š‘—Ž†„‡‘
ƒ•–ƒ’’ƒ’‡”‘ˆ–Š‡’”‡•…”‹„‡†˜ƒŽ—‡†‡’‡†‹‰—’‘–Š‡ƒ‘—–‘ˆ–ƒš†‡†—…–‹‘Ǥ
Š‡”‡ ”‡ˆ—† ƒ”‹•‡• ‘ …‘’Ž‡–‹‘ ‘ˆ ƒ••‡••‡– ‘ ƒ……‘—– ‘ˆ ‡š…‡•• ’ƒ›‡–• ‘ˆ ƒ†˜ƒ…‡ –ƒš ‘” ‘ •‡ŽˆǦ
ƒ••‡••‡–‘”‹–”‡•—Ž–•‘ƒ……‘—–‘ˆ”‡†—…–‹‘‹ƒ’’‡ƒŽǡ”‡˜‹•‹‘‘””‡…–‹ϐ‹…ƒ–‹‘‘ˆ‹•–ƒ‡•ǡ‘ˆ‘”ƒŽƒ’’Ž‹…ƒ–‹‘
ˆ‘””‡ˆ—†‹•”‡“—‹”‡†ǤŠ‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ‰”ƒ–•—…Š”‡ˆ—†‘Š‹•‘™Ǥ‘™‡˜‡”ǡ™Š‡”‡ƒƒ••‡••‡–‹•
•‡–ƒ•‹†‡‘”…ƒ…‡ŽŽ‡†„›˜‹”–—‡‘ˆ•—…Šƒ‘”†‡”ƒ†ƒ‘”†‡”‘ˆˆ”‡•Šƒ••‡••‡–‹•†‹”‡…–‡†–‘„‡ƒ†‡ǡ–Š‡”‡ˆ—†
‹ˆƒ›ǡ•ŠƒŽŽ„‡…‘‡†—‡‘Ž›‘–Š‡ƒ‹‰‘ˆˆ”‡•Šƒ••‡••‡–Ǥ…ƒ•‡•™Š‡”‡–Š‡ƒ••‡••‡–‹•ƒ—ŽŽ‡†ǡ–Š‡
”‡ˆ—†•ŠƒŽŽ„‡…‘‡†—‡‘Ž›‘ˆ–Š‡ƒ‘—–‘ˆ–ƒš’ƒ‹†‹‡š…‡••‘ˆ–Š‡–ƒš…Šƒ”‰‡ƒ„Ž‡‘–Š‡–‘–ƒŽ‹…‘‡”‡–—”‡†
„›–Š‡ƒ••‡••‡‡ȋ‡…–‹‘ʹͶͲȌǤ
‘™‡˜‡”ǡ–Š‡ƒ••‡••‹‰‘ˆϐ‹…‡”‹•ƒ—–Š‘”‹•‡†–‘ƒ†‹–ƒ„‡Žƒ–‡†”‡ˆ—†…Žƒ‹•—„Œ‡…––‘•ƒ–‹•ˆ›‹‰–Š‡ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ǣ
ȋƒȌ –Š‡”‡ˆ—†ƒ”‹•‹‰ƒ•ƒ–ƒš†‡†—…–‡†ƒ–•‘—”…‡—†‡”‡…–‹‘ͳͻʹǡͳͻ͵ǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶǡͳͻͶƒ†
ͳͻͷ‘”ƒ•ƒ”‡•—Ž–‘ˆ‡š…‡••ƒ†˜ƒ…‡–ƒš’ƒ›‡–•—†‡”‡…–‹‘ʹͲͺǡ†‘‡•‘–‡š…‡‡†•ǤͳͲǡͲͲͲǢ
ȋ„Ȍ –Š‡”‡–—”‡†‹…‘‡‹•‘–ƒŽ‘••ǡ™Š‡”‡–Š‡ƒ••‡••‡‡…Žƒ‹•–Š‡„‡‡ϐ‹–‘ˆ…ƒ””›ˆ‘”™ƒ”†‘ˆ–Š‡Ž‘••Ǣ
ȋ…Ȍ –Š‡”‡ˆ—†…Žƒ‹‡†‹•‘–•—’’Ž‡‡–ƒ”›‹ƒ–—”‡ǡ‹Ǥ‡Ǥǡƒ…Žƒ‹ˆ‘”ƒ††‹–‹‘ƒŽƒ‘—–‘ˆ”‡ˆ—†ƒˆ–‡”–Š‡
…‘’Ž‡–‹‘‘ˆ–Š‡‘”‹‰‹ƒŽƒ••‡••‡–ˆ‘”–Š‡•ƒ‡›‡ƒ”Ǣƒ†
ȋ†Ȍ –Š‡‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡‹•‘–ƒ••‡••ƒ„Ž‡‹–Š‡Šƒ†•‘ˆƒ›‘–Š‡”’‡”•‘—†‡”ƒ›’”‘˜‹•‹‘•‘ˆ–Š‡
…–Ǥ

Whom to apply for refund?

Žƒ‹ˆ‘””‡ˆ—†•Š‘—Ž†„‡’”‡ˆ‡””‡†–‘–Š‡••‡••‹‰ˆϐ‹…‡”Šƒ˜‹‰Œ—”‹•†‹…–‹‘–‘ƒ••‡••–Š‡ƒ••‡••‡‡Ǥ
„‹‰‰‡”–‘™•Ž‹‡‡ŽŠ‹ǡ—„ƒ‹ǡ‘Žƒ–ƒǡŠ‡ƒ‹ǡ•‡’ƒ”ƒ–‡‡ˆ—†‹”…Ž‡•Šƒ˜‡„‡‡‘’‡‡†–‘•‡––Ž‡”‡ˆ—†
…ƒ•‡•Ǥ‘™‡˜‡”ǡ–Š‡•‡…‹”…Ž‡••‡––Ž‡”‡ˆ—†…ƒ•‡•™Š‡”‡‹…‘‡‹•”‡•–”‹…–‡†–‘Ǯ–Š‡”‘—”…‡•ǯǤ
Who is entitled to refund?
›‘‡‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘•…ƒƒ’’Ž›ˆ‘”–Š‡”‡ˆ—†ǣ
ȋ‹Ȍ ™‡”‘ˆ–Š‡‹…‘‡™Š‘Šƒ•ƒ†‡‡š…‡••’ƒ›‡–Ǣ
ȋ‹‹Ȍ Š‡”‡–Š‡‹…‘‡‘ˆƒ’‡”•‘‹•‹…Ž—†‡†‹–Š‡Šƒ†•‘ˆƒ‘–Š‡”ǡ‘Ž›–Š‡Žƒ––‡”‹•‡–‹–Ž‡†–‘”‡ˆ—†Ǣ
ȋ‹‹‹Ȍ …ƒ•‡‘ˆ†‡ƒ–Š‘ˆ–Š‡ƒ••‡••‡‡ǡŠ‹•Ž‡‰ƒŽ”‡’”‡•‡–ƒ–‹˜‡Ǣ
ȋ‹˜Ȍ …ƒ•‡‘ˆ‹•‘Ž˜‡…›‘ˆ–Š‡ƒ••‡••‡‡Ǧ–Š‡”‡…‡‹˜‡”Ǣ
ȋ˜Ȍ …ƒ•‡‘ˆŽ‹“—‹†ƒ–‹‘‘ˆƒ…‘’ƒ›Ǧ–Š‡Ž‹“—‹†ƒ–‘”‘ˆ–Š‡…‘’ƒ›Ǣ
 554 Lesson 9 Ȉ EP-TL

ȋ˜‹Ȍ …ƒ•‡‘ˆ‹‘”‘”‹…ƒ’ƒ„Ž‡ƒ••‡••‡‡Ǧ–Š‡‰—ƒ”†‹ƒ‘ˆ–Š‡‹‘”‘”‹…ƒ’ƒ„Ž‡Ǣ
ȋ˜‹‹Ȍ …ƒ•‡‘ˆ‘Ǧ”‡•‹†‡–ƒ••‡••‡‡ǦŠ‹•ƒ‰‡–’”‘˜‹†‡†Š‡Šƒ•„‡‡†—Ž›ƒ—–Š‘”‹•‡†„›–Š‡’”‹…‹’ƒŽǢƒ†
ȋ˜‹‹‹Ȍ …ƒ•‡‘ˆ†‹••‘Ž˜‡†’ƒ”–‡”•Š‹’ϐ‹”Ǧƒ›’ƒ”–‡”’”‘˜‹†‡†Š‡Šƒ•„‡‡†—Ž›ƒ—–Š‘”‹•‡†„›ƒŽŽ‘–Š‡”‡šǦ
’ƒ”–‡”•‘ˆ–Š‡ϐ‹”Ǥ

Issue of Refund
ˆ–Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡”‡ˆ—†…Žƒ‹‹•…‘’Ž‡–‡ƒ†‹‘”†‡”ǡŠ‡•ŠƒŽŽ…‘’Ž‡–‡–Š‡ƒ••‡••‡–
ƒ†‹••—‡ƒ”‡ˆ—†˜‘—…Š‡”’ƒ›ƒ„Ž‡ƒ––Š‡‡•‡”˜‡ƒ‘”–Š‡–ƒ–‡ƒ‘”ƒ›–”‡ƒ•—”›ǤŠ‡”‡ˆ—†˜‘—…Š‡”‹•
‡…ƒ•Šƒ„Ž‡Ž‹‡ƒ›‘–Š‡”…Š‡“—‡ǡ™‹–Š‹–Š”‡‡‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡Ǥˆ–Š‡ƒ••‡••‡‡ˆƒ‹Ž•–‘‡…ƒ•Š‹–™‹–Š‹
–Š‡’”‡•…”‹„‡†–‹‡ȋ͵‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡ȌǡŠ‡•Š‘—Ž†•‡†‹––‘–Š‡••‡••‹‰ˆϐ‹…‡”™Š‘™‹ŽŽ…ƒ…‡Ž‹–
ƒ†‹••—‡ƒˆ”‡•Š‘‡Ǥˆ–Š‡ƒ’’Ž‹…ƒ–‹•ƒ”‡•‹†‡–ƒ†–Š‡ƒ‘—–‘ˆ”‡ˆ—†‹••ƒŽŽǡ–Š‡ƒ‘—–ƒ›„‡•‡–„›
‘‡›‘”†‡”ƒ–
‘˜‡”‡–…‘•–ǤŠ‡”‡–Š‡ƒ••‡••‡‡‹•ƒ‘Ǧ”‡•‹†‡–ǡ‰‡‡”ƒŽŽ›ƒƒ”ƒˆ–‹••‡–ƒ–Š‹•…‘•–Ǥ
Adjustment of Refund
ŽŽ”‡ˆ—†•ƒ›‘–„‡•‡––Ž‡†„›ƒ…–—ƒŽ’ƒ›‡–•ǤŠ‡”‡˜‡”‹–‹•ˆ‘—†–Šƒ––ƒšˆ‘”•‘‡‘–Š‡”›‡ƒ”•ȋ‡‹–Š‡”‡ƒ”Ž‹‡”
‘”•—„•‡“—‡––‘–Š‡›‡ƒ”–‘™Š‹…Š–Š‡”‡ˆ—†”‡Žƒ–‡•Ȍƒ”‡‘—–•–ƒ†‹‰ƒ‰ƒ‹•––Š‡ƒ••‡••‡‡ǡ–Š‡”‡ˆ—††—‡ƒ›„‡
ƒ†Œ—•–‡†ƒ‰ƒ‹•––Š‡‘—–•–ƒ†‹‰†‡ƒ†ƒ†–Š‡„ƒŽƒ…‡ǡ‹ˆƒ›ǡ”‡ˆ—†‡†–‘Š‹Ǥ‘™‡˜‡”ǡ–Š‡ƒ‘—–…ƒ„‡
ƒ†Œ—•–‡†‘Ž›ƒˆ–‡”‰‹˜‹‰ƒ‹–‹ƒ–‹‘‹™”‹–‹‰–‘–Š‡ƒ••‡••‡‡‘ˆ–Š‡ƒ…–‹‘’”‘’‘•‡†–‘„‡–ƒ‡ˆ‘”–Š‡’—”’‘•‡Ǥ
Interest on Refunds
‡…–‹‘ʹͶͶǡ’”‘˜‹†‡•–Šƒ–™Š‡”‡ǡ‹’—”•—ƒ…‡‘ˆƒ›‘”†‡”’ƒ••‡†—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ”‡ˆ—†‘ˆƒ›
ƒ‘—–„‡…‘‡•†—‡–‘–Š‡ƒ••‡••‡‡ǡŠ‡•ŠƒŽŽ„‡‡–‹–Ž‡†–‘”‡…‡‹˜‡ǡ‹ƒ††‹–‹‘–‘–Š‡•ƒ‹†ƒ‘—–ǡ•‹’Ž‡‹–‡”‡•–
–Š‡”‡‘…ƒŽ…—Žƒ–‡†‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ
ȋƒȌ Š‡”‡–Š‡”‡ˆ—†‹•‘—–‘ˆƒ›–ƒš…‘ŽŽ‡…–‡†ƒ–•‘—”…‡—†‡”‡…–‹‘ʹͲ͸‘”’ƒ‹†„›™ƒ›‘ˆƒ†˜ƒ…‡–ƒš‘”
–”‡ƒ–‡†ƒ•’ƒ‹†—†‡”‡…–‹‘ͳͻͻǡ†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ƒ••‡••‡–›‡ƒ”ǡ
‹–‡”‡•–…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆ‘‡ŠƒŽˆ’‡”…‡–ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆƒ‘–Š…‘’”‹•‡†‹–Š‡
’‡”‹‘†ˆ”‘ͳ•–†ƒ›‘ˆ’”‹Ž‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”–‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡”‡ˆ—†‹•‰”ƒ–‡†Ǥ—–ǡ‹ˆ–Š‡
ƒ‘—–‘ˆ”‡ˆ—†•‹•Ž‡••–Šƒ–‡’‡”…‡–‘ˆ–Š‡–ƒšƒ•†‡–‡”‹‡†‘”‡‰—Žƒ”ƒ••‡••‡–ǡ‘‹–‡”‡•–
•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡Ǥ
ȋ„Ȍ ™Š‡”‡–Š‡”‡ˆ—†‹•‘—–‘ˆƒ›–ƒš’ƒ‹†—†‡”•‡…–‹‘ͳͶͲǡ•—…Š‹–‡”‡•–•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆ
‘‡ǦŠƒŽˆ’‡”…‡–ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–‘ˆƒ‘–Š…‘’”‹•‡†‹–Š‡’‡”‹‘†ǡˆ”‘–Š‡†ƒ–‡‘ˆˆ—”‹•Š‹‰
‘ˆ”‡–—”‘ˆ‹…‘‡‘”’ƒ›‡–‘ˆ–ƒšǡ™Š‹…Š‡˜‡”‹•Žƒ–‡”ǡ–‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡”‡ˆ—†‹•‰”ƒ–‡†Ǥ
 ‘™‡˜‡”ǡ ‘ ‹–‡”‡•– •ŠƒŽŽ „‡ ’ƒ›ƒ„Ž‡ ‹ˆ –Š‡ ƒ‘—– ‘ˆ ”‡ˆ—† ‹• Ž‡•• –Šƒ –‡ ’‡”…‡– ‘ˆ –Š‡ –ƒš ƒ•
†‡–‡”‹‡†—†‡”—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͳͶ͵‘””‡‰—Žƒ”ƒ••‡••‡–Ǥ
ȋ…Ȍ ƒ›‘–Š‡”…ƒ•‡ǡ•—…Š‹–‡”‡•–Šƒ•–‘„‡…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆ‘‡ŠƒŽˆ’‡”…‡–ˆ‘”‡˜‡”›‘–Š‘”’ƒ”–
‘ˆƒ‘–Š…‘’”‹•‡†‹–Š‡’‡”‹‘†‘”’‡”‹‘†•ˆ”‘–Š‡†ƒ–‡‘”†ƒ–‡•‘ˆ’ƒ›‡–‘ˆ–Š‡–ƒš‘”’‡ƒŽ–›–‘
–Š‡†ƒ–‡‘™Š‹…Š–Š‡”‡ˆ—†‹•‰”ƒ–‡†ȋŠ‡Dz†ƒ–‡‘ˆ’ƒ›‡–‘ˆ–ƒš‘”’‡ƒŽ–›dz‡ƒ•–Š‡†ƒ–‡‘ƒ†
ˆ”‘™Š‹…Š–Š‡ƒ‘—–‘ˆ–ƒš‘”’‡ƒŽ–›Ǣ•’‡…‹ϐ‹‡†‹–Š‡†‡ƒ†‘–‹…‡—†‡”‡…–‹‘ͳͷ͸‹•’ƒ‹†‹
‡š…‡••‘ˆ•—…Š†‡ƒ†ȌǤ
ȋ†Ȍ Š‡”‡ƒ”‡ˆ—†ƒ”‹•‡•‘—–‘ˆƒ’’‡ƒŽ‡ˆˆ‡…–„‡‹‰†‡Žƒ›‡†„‡›‘†–Š‡–‹‡’”‡•…”‹„‡†—†‡”•—„Ǧ•‡…–‹‘‘ˆ
•‡…–‹‘ͳͷ͵ǡ–Š‡ƒ••‡••‡‡•ŠƒŽŽ„‡‡–‹–Ž‡†–‘”‡…‡‹˜‡ǡ‹ƒ††‹–‹‘–‘–Š‡‹–‡”‡•–’ƒ›ƒ„Ž‡—†‡”•—„Ǧ•‡…–‹‘
ȋͳȌ‘ˆ•‡…–‹‘ʹͶͶǡƒƒ††‹–‹‘ƒŽ‹–‡”‡•–‘•—…Š”‡ˆ—†ƒ‘—–…ƒŽ…—Žƒ–‡†̷͵Ψ’‡”ƒ—ǡˆ‘”–Š‡
’‡”‹‘†„‡‰‹‹‰ˆ”‘–Š‡†ƒ–‡ˆ‘ŽŽ‘™‹‰–Š‡†ƒ–‡‘ˆ‡š’‹”›‘ˆ–Š‡–‹‡ƒŽŽ‘™‡†—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ
•‡…–‹‘ ͳͷ͵ –‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š –Š‡ ”‡ˆ—† ‹• ‰”ƒ–‡†Ǥ – ‹• …Žƒ”‹ϐ‹‡† –Šƒ– ‹ …ƒ•‡• ™Š‡”‡ ‡š–‡•‹‘ ‹•
‰”ƒ–‡†„›–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”„›‹˜‘‹‰’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘
ͳͷ͵ǡ–Š‡’‡”‹‘†‘ˆƒ††‹–‹‘ƒŽ‹–‡”‡•–ǡ‹ˆƒ›ǡ•ŠƒŽŽ„‡‰‹ˆ”‘–Š‡‡š’‹”›‘ˆ•—…Š‡š–‡†‡†’‡”‹‘†Ǥ
ȋ‡Ȍ Š‡ƒ••‡••‡‡‹•‘–‡–‹–Ž‡†–‘ƒ›‹–‡”‡•–‘”‡ˆ—†™Š‡”‡ƒ†‡Žƒ›‹’ƒ›‡––Š‡”‡‘ˆ–ƒ‡•’Žƒ…‡ˆ‘”
”‡ƒ•‘•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡Ǥ›“—‡•–‹‘ƒ•–‘–Š‡’‡”‹‘†–‘„‡‡š…Ž—†‡†Šƒ•–‘„‡†‡…‹†‡†„›–Š‡
Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”™Š‘•‡†‡…‹•‹‘–Š‡”‡‘•ŠƒŽŽ„‡ϐ‹ƒŽǤ
 Lesson 9 Ȉ Procedural Compliance 555

ȋˆȌ –Š‡‡˜‡–‘ˆ‹…”‡ƒ•‡‘””‡†—…–‹‘‘ˆ–Š‡ƒ‘—–‘™Š‹…Š–Š‡‹–‡”‡•–‹•’ƒ›ƒ„Ž‡ȋƒ•ƒ…‘•‡“—‡…‡‘ˆƒ
‘”†‡”—Ȁ•ͳͶ͵ȋ͵ȌǢͳͶͶǢͳͶ͹ǢͳͷͶǢͳͷͷǢʹͷͲǢʹͷͶǢʹ͸ͲǢʹ͸ʹǢʹ͸͵Ǣʹ͸ͶǢ‘”ʹͶͷȋͶȌǡ‹–‡”‡•–’ƒ›ƒ„Ž‡‹•–‘„‡
‹…”‡ƒ•‡†‘””‡†—…‡†ƒ……‘”†‹‰Ž›Ǥ–Š‡…ƒ•‡‘ˆ•—„•‡“—‡–”‡†—…–‹‘‘ˆ–Š‡‹–‡”‡•–ǡ–Š‡••‡••‹‰ˆϐ‹…‡”Šƒ•
–‘•‡”˜‡ƒ†‡ƒ†‘–‹…‡‘–Š‡ƒ••‡••‡‡”‡“—‹”‹‰Š‹–‘’ƒ›„ƒ…•—…Šƒ‘—–ƒ•Šƒ•„‡‡’ƒ‹†‹‡š…‡••Ǥ

Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽƒ’’Ž›‹”‡•’‡…–‘ˆƒ••‡••‡–•ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”…‘‡…‹‰‘–Š‡ͳ•–
†ƒ›‘ˆ’”‹Žǡͳͻͺͻƒ†•—„•‡“—‡–›‡ƒ”•Ǥ‘™‡˜‡”ǡ‹”‡•’‡…–‘ˆƒ••‡••‡–‘ˆˆ”‹‰‡„‡‡ϐ‹–•ǡ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•
—„Ǧ•‡…–‹‘•ŠƒŽŽŠƒ˜‡‡ˆˆ‡…–ƒ•‹ˆˆ‘”–Š‡ϐ‹‰—”‡•Dzͳͻͺͻdzǡ–Š‡ϐ‹‰—”‡•DzʹͲͲ͸dzŠƒ†„‡‡•—„•–‹–—–‡†Ǥ
New Section 244A(1B) ǣŠ‹••‡…–‹‘’”‘˜‹†‡•–Šƒ–™Š‡”‡”‡ˆ—†‘ˆƒ›ƒ‘—–„‡…‘‡•†—‡–‘–Š‡†‡†—…–‘”ǡ•—…Š
’‡”•‘•ŠƒŽŽ„‡‡–‹–Ž‡†–‘”‡…‡‹˜‡ǡ‹ƒ††‹–‹‘–‘–Š‡”‡ˆ—†ǡ•‹’Ž‡‹–‡”‡•–‘•—…Š”‡ˆ—†ƒ–”ƒ–‡‘ˆͲǤͷΨ’‡”
‘–Š‘”’ƒ”–‘ˆ‘–ŠǤ–‡”‡•–™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š…Žƒ‹ˆ‘””‡ˆ—†‹•ƒ†‡‹–Š‡’”‡•…”‹„‡†
ˆ‘”–‘–Š‡†ƒ–‡‘™Š‹…Š”‡ˆ—†‹•‰”ƒ–‡†ǤŠ‡”‡”‡ˆ—†ƒ”‹•‡•‘ƒ……‘—–‘ˆ‰‹˜‹‰‡ˆˆ‡…––‘ƒƒ’’‡ŽŽƒ–‡‘”†‡”
—†‡”•‡…–‹‘ʹͷͲȀʹͷͶȀʹ͸ʹǡ‹–‡”‡•–™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ˆ”‘–Š‡†ƒ–‡‘ˆ†‡’‘•‹–‘ˆ–‘–Š‡†ƒ–‡‘™Š‹…Š”‡ˆ—†
‹•‰”ƒ–‡†Ǥ‘™‡˜‡”ǡ‹–‡”‡•–•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ˆ‘”–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡†‡Žƒ›ȋ‹–Š‡’”‘…‡‡†‹‰•”‡•—Ž–‹‰‹
–Š‡”‡ˆ—†Ȍ‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡†‡†—…–‘”Ǥ
‘™‡˜‡”ǡ ™Š‡”‡ –Š‡ ’”‘…‡‡†‹‰• ”‡•—Ž–‹‰ ‹ –Š‡ ”‡ˆ—† ƒ”‡ †‡Žƒ›‡† ˆ‘” ”‡ƒ•‘• ƒ––”‹„—–ƒ„Ž‡ –‘ –Š‡ ƒ••‡••‡‡ǡ
™Š‡–Š‡”™Š‘ŽŽ›‘”’ƒ”–Ž›ǡ–Š‡’‡”‹‘†‘ˆ†‡Žƒ›•‘ƒ––”‹„—–ƒ„Ž‡–‘Š‹•ŠƒŽŽ„‡‡š…Ž—†‡†ƒ•’‡”–Š‡†‡…‹•‹‘–ƒ‡„›
–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”ȋŠ‹•†‡…‹•‹‘–Š‡”‡‘•ŠƒŽŽ„‡ϐ‹ƒŽȌǤ
New Section 241A ǣ Š‹• •‡…–‹‘ ’”‘˜‹†‡• –Šƒ– ˆ‘” –Š‡ ”‡–—”• ˆ—”‹•Š‡† ˆ‘” ƒ••‡••‡– ›‡ƒ” ʹͲͳ͹Ǧͳͺ ȋ‘” ƒ›
•—„•‡“—‡– ›‡ƒ”Ȍǡ ™Š‡”‡ ”‡ˆ—† ‹• †—‡ –‘ –Š‡ ƒ••‡••‡‡ —†‡” •‡…–‹‘ ͳͶ͵ȋͳȌ ƒ† –Š‡ ƒ••‡••‹‰ ‘ˆϐ‹…‡” ‹• ‘ˆ –Š‡
‘’‹‹‘–Šƒ––Š‡‰”ƒ–‘ˆ”‡ˆ—†ƒ›ƒ†˜‡”•‡Ž›‡ˆˆ‡…––Š‡”‡…‘˜‡”›‘ˆ”‡˜‡—‡ǡŠ‡ƒ›ǡˆ‘”–Š‡”‡ƒ•‘•–‘„‡”‡…‘”†‡†
‹™”‹–‹‰ƒ†™‹–Š’”‡˜‹‘—•ƒ’’”‘˜ƒŽ‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡ™‹–ŠŠ‘Ž†–Š‡”‡ˆ—†—’–‘
–Š‡†ƒ–‡‘™Š‹…Š–Š‡ƒ••‡••‡–‹•ƒ†‡Ǥ

CASE LAWS
ͳǤ ͲͻǤͲ͸ǤʹͲͳ͹ Binoy Viswam v. Union of India Supreme Court

Provision Mandating Quoting of Aadhaar for IT Returns & PAN is valid

Fact of the Case: ‡…‡–Ž›ǡ ‡…–‹‘ ͳ͵ͻ ™ƒ• ‹…‘”’‘”ƒ–‡† ‹ –Š‡ …‘‡ ƒš …– ˜‹†‡ ‹ƒ…‡ …–ǡ ʹͲͳ͹
”‡“—‹”‹‰ƒ†ƒ–‘”›“—‘–‹‰‘ˆƒ†Šƒƒ”‘”‡”‘Ž‡–‘ˆƒ†Šƒƒ”ƒ’’Ž‹…ƒ–‹‘ˆ‘”ˆ‘”ϐ‹Ž‹‰‘ˆ‹…‘‡–ƒš
”‡–—”•ƒ†ƒ‹‰ƒ’’Ž‹…ƒ–‹‘ˆ‘”ƒŽŽ‘–‡–‘ˆȋ‡”ƒ‡–……‘—–—„‡”Ȍ™‹–Š‡ˆˆ‡…–ˆ”‘ —Ž›ͳʹͲͳ͹Ǥ
ƒ•’‡”–Š‡’”‘˜‹•‹‘ǡ‘Ǧ‡”‘Ž‡–‘ˆƒ†Šƒƒ”„› —Ž›ʹͲͳ͹™‘—Ž†”‡†‡”–Š‡‘ˆ–Š‡†‡ˆƒ—Ž–‹‰‹†‹˜‹†—ƒŽ
‹˜ƒŽ‹†ǡƒ––”ƒ…–‹‰•‡”‹‘—•…‘•‡“—‡…‡•—†‡”–Š‡…‘‡ƒš—Ž‡•Ǥ
 —„‡” ‘ˆ ’‡–‹–‹‘• ™‡”‡ ϐ‹Ž‡† „‡ˆ‘”‡ –Š‡ ‘’Ǧ‘—”– …ŠƒŽŽ‡‰‹‰ –Š‡ ˜‹”‡• ‘ˆ –Š‡ ƒ„‘˜‡ ’”‘˜‹•‹‘Ǥ Š‡
’‡–‹–‹‘‡”•…‘–‡†‡†–Šƒ––Š‡‡™’”‘˜‹•‹‘Dz…‘’‡ŽŽ‹‰dz–ƒš’ƒ›‡”•–‘Ž‹–Š‡‹”ƒ†Šƒƒ”ƒ”†–‘‹ʹͲͳͷǡ
–Š‡ ƒ†Šƒƒ” Dz™ƒ• ‘– ƒ†ƒ–‘”›dz ˆ‘” ƒŽŽ –Š‡ …‹–‹œ‡•Ǥ – ™ƒ• Š‡Ž† –Šƒ– ƒ†Šƒƒ” •Š‘—Ž† „‡ ˜‘Ž—–ƒ”› ƒ† ‘
„‡‡ϐ‹–•…ƒ„‡†‡‹‡†ˆ‘”™ƒ–‘ˆ‹–ǤŠ‡’‡–‹–‹‘‡”ǡ–Š‡”‡ˆ‘”‡ǡ…‘–‡†‡†–Šƒ––Š‡•…Š‡‡‹–•‡Žˆǡ™ƒ•˜‘Ž—–ƒ”›
ƒ†–Š‡…ƒ”†‹•–‘„‡‘„–ƒ‹‡†‘Ž›‘–Š‡…‘•‡–‘ˆ–Š‡‹†‹˜‹†—ƒŽǤ
Š‡ „‡…Š …‘…—””‡† ™‹–Š –Š‡ ƒ”‰—‡– ‘ˆ –Š‡
‘˜‡”‡– –Šƒ– –Š‡ ’”‹ƒ”› ’—”’‘•‡ ‘ˆ ‹–”‘†—…‹‰ –Š‹•
’”‘˜‹•‹‘™ƒ•–‘–ƒ‡…ƒ”‡‘ˆ–Š‡’”‘„Ž‡‘ˆ—Ž–‹’Ž‡…ƒ”†•‘„–ƒ‹‡†‹ϐ‹…–‹–‹‘—•ƒ‡•Ǥ
Š‹Ž‡ƒ……‡’–‹‰–Š‹•…‘–‡–‹‘ǡ —•–‹…‡Ǥ‹”‹•ƒ‹†–Šƒ–’‡‘’Ž‡™Š‘†‘‘–Šƒ˜‡ƒ†Šƒƒ”ƒ”†ƒ”‡‘–„‘—†
–‘ƒ’’Ž›ˆ‘”‹––‹ŽŽ–Š‡˜‡”†‹…–‘ˆ–Š‡‘•–‹–—–‹‘‡…ŠǤ–™ƒ•…Žƒ”‹ϐ‹‡†–Šƒ–Dzƒ••‡••‡•™Š‘ƒ”‡‘–ƒ†Šƒƒ”…ƒ”†
Š‘Ž†‡”•ƒ††‘‘–…‘’Ž›™‹–Š–Š‡’”‘˜‹•‹‘‘ˆ‡…–‹‘ͳ͵ͻȋʹȌǡ–Š‡‹”…ƒ”†•„‡‘––”‡ƒ–‡†ƒ•‹˜ƒŽ‹†ˆ‘”–Š‡
–‹‡„‡‹‰Ǥdz‘™‡˜‡”ǡ’‡‘’Ž‡™Š‘Šƒ˜‡ƒ†Šƒƒ”—•–Ž‹‹–™‹–Šƒ”†•‹…‡‹–‹•‡…‡••ƒ”›–‘’”‡˜‡–ˆƒ‡
…ƒ”†•Ǥ
Judgement:  ‹‘› ‹•™ƒ ˜Ǥ ‹‘ ‘ˆ †‹ƒǡ ƒ –™‘ǦŒ—†‰‡ „‡…Š ‘ˆ –Š‡ —’”‡‡ ‘—”– —’Š‡Ž† –Š‡
…‘•–‹–—–‹‘ƒŽ˜ƒŽ‹†‹–›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…‘‡ƒš…–™Š‹…Šƒ†ƒ–‡•“—‘–‹‰‘ˆ
ƒ†Šƒƒ”ˆ‘”‡–—”•Ǥ
556 Lesson 9 Ȉ EP-TL

ʹǤ March 2, 2021 Engineering Analysis Centre of Excellence Private Limited Supreme Court
(Appellant) vs. CIT (Respondent)

Amount paid by resident Indian end-users/distributors to non-resident computer software

manufacturers/suppliers, as consideration for the resale/use of computer software through EULAs
distribution agreements, is not payment of royalty for the use of copyright in computer software, and
that the same does not give rise to any income taxable in India; as a result of which the persons are not
Ž‹ƒ„Ž‡–‘†‡†—…–ƒ›—†‡”•‡…–‹‘ͳͻͷ‘ˆ–Š‡…‘‡ƒš…–Ǥ

Fact of the Case:Š‡ƒ’’‡ŽŽƒ–ǡ‰‹‡‡”‹‰ƒŽ›•‹•‡–”‡‘ˆš…‡ŽŽ‡…‡˜–Ǥ–†ǤȋȌǡ‹•ƒ”‡•‹†‡–†‹ƒ

‡†Ǧ—•‡” ‘ˆ •Š”‹Ǧ™”ƒ’’‡† …‘’—–‡” •‘ˆ–™ƒ”‡ǡ †‹”‡…–Ž› ‹’‘”–‡† ˆ”‘ –Š‡ ‹–‡† –ƒ–‡• ‘ˆ ‡”‹…ƒǤ Š‡
••‡••‹‰ˆϐ‹…‡”„›ƒ‘”†‡”†ƒ–‡†ͳͷǤͲͷǤʹͲͲʹǡƒˆ–‡”ƒ’’Ž›‹‰”–‹…Ž‡ͳʹȋ͵Ȍ‘ˆ–Š‡‘—„Ž‡ƒšƒ–‹‘˜‘‹†ƒ…‡
‰”‡‡‡–ȋȌǡ„‡–™‡‡†‹ƒƒ†ǡƒ†—’‘ƒ’’Ž›‹‰•‡…–‹‘ͻȋͳȌȋ˜‹Ȍ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ
ȋ…–Ȍǡ ˆ‘—† –Šƒ– ™Šƒ– ™ƒ• ‹ ˆƒ…– –”ƒ•ˆ‡””‡† ‹ –Š‡ –”ƒ•ƒ…–‹‘ „‡–™‡‡ –Š‡ ’ƒ”–‹‡• ™ƒ• …‘’›”‹‰Š– ™Š‹…Š
ƒ––”ƒ…–‡†–Š‡’ƒ›‡–‘ˆ”‘›ƒŽ–›ƒ†–Š—•ǡ‹–™ƒ•”‡“—‹”‡†–Šƒ––ƒš„‡†‡†—…–‡†ƒ–•‘—”…‡„›–Š‡†‹ƒ‹’‘”–‡”
ƒ†‡†Ǧ—•‡”ǡǤ‹…‡–Š‹•™ƒ•‘–†‘‡ˆ‘”„‘–Š–Š‡ƒ••‡••‡–›‡ƒ”•ǡ™ƒ•Š‡Ž†Ž‹ƒ„Ž‡–‘’ƒ›–Š‡ƒ‘—–
‘ˆ•ǤͳǡͲ͵ǡͷͶǡ͹ͺͶ–Šƒ–‹–Šƒ†‘–†‡†—…–‡†ƒ•ǡƒŽ‘‰™‹–Š‹–‡”‡•–—†‡”•‡…–‹‘ʹͲͳȋͳȌ‘ˆ–Š‡…–ƒ‘—–‹‰
–‘•Ǥͳͷǡ͹͸ǡͷ͸͹ǤŠ‡ƒ’’‡ƒŽ„‡ˆ‘”‡–Š‡‘‹••‹‘‡”‘ˆ…‘‡ƒšȋȌ™ƒ•†‹•‹••‡†„›ƒ‘”†‡”†ƒ–‡†
ʹ͵ǤͲͳǤʹͲͲͶǤ ‘™‡˜‡”ǡ –Š‡ ƒ’’‡ƒŽ „‡ˆ‘”‡ –Š‡ …‘‡ ƒš ’’‡ŽŽƒ–‡ ”‹„—ƒŽ ȋȌ •—……‡‡†‡† ˜‹†‡ ƒ ‘”†‡”
†ƒ–‡†ʹͷǤͳͳǤʹͲͲͷǤ

ƒ’’‡ƒŽ™ƒ•ƒ†‡ˆ”‘–Š‡‘”†‡”‘ˆ–Š‡–‘–Š‡‹‰Š‘—”–‘ˆƒ”ƒ–ƒƒ„›–Š‡‡˜‡—‡ǤŠ‡‹‰Š

‘—”–Š‡Ž†–Šƒ–•‹…‡‘ƒ’’Ž‹…ƒ–‹‘—†‡”•‡…–‹‘ͳͻͷȋʹȌ‘ˆ–Š‡…–Šƒ†„‡‡ƒ†‡ǡ–Š‡”‡•‹†‡–†‹ƒ
‹’‘”–‡”•„‡…ƒ‡Ž‹ƒ„Ž‡–‘†‡†—…––ƒšƒ–•‘—”…‡ǡ™‹–Š‘—–‘”‡ǡ—†‡”•‡…–‹‘ͳͻͷȋͳȌ‘ˆ–Š‡…–Ǥ

Order/ Judgment: Š‡DzŽ‹…‡•‡dz–Šƒ–‹•‰”ƒ–‡†˜‹†‡–Š‡‡†—•‡”Ž‹…‡•‡ƒ‰”‡‡‡–Ǯǯǡ‹•‘–ƒŽ‹…‡•‡‹

–‡”• ‘ˆ •‡…–‹‘ ͵Ͳ ‘ˆ –Š‡ ‘’›”‹‰Š– …–ǡ ™Š‹…Š –”ƒ•ˆ‡”• ƒ ‹–‡”‡•– ‹ ƒŽŽ ‘” ƒ› ‘ˆ –Š‡ ”‹‰Š–• …‘–ƒ‹‡† ‹
•‡…–‹‘•ͳͶȋƒȌƒ†ͳͶȋ„Ȍ‘ˆ–Š‡‘’›”‹‰Š–…–ǡ„—–‹•ƒDzŽ‹…‡•‡dz™Š‹…Š‹’‘•‡•”‡•–”‹…–‹‘•‘”…‘†‹–‹‘•ˆ‘”–Š‡
—•‡‘ˆ…‘’—–‡”•‘ˆ–™ƒ”‡ǤŠ‡•†‘‘–‰”ƒ–ƒ›•—…Š”‹‰Š–‘”‹–‡”‡•––‘”‡’”‘†—…‡–Š‡…‘’—–‡”•‘ˆ–™ƒ”‡Ǥ
 ’‘‹– ‘ˆ ˆƒ…–ǡ •—…Š ”‡’”‘†—…–‹‘ ‹• ‡š’”‡••Ž› ‹–‡”†‹…–‡†ǡ ƒ† ‹– ‹• ƒŽ•‘ ‡š’”‡••Ž› •–ƒ–‡† –Šƒ– ‘ ˜‡•–‹‰‡ ‘ˆ
…‘’›”‹‰Š–‹•ƒ–ƒŽŽ–”ƒ•ˆ‡””‡†ǡ‡‹–Š‡”–‘–Š‡†‹•–”‹„—–‘”‘”–‘–Š‡‡†Ǧ—•‡”Ǥ

—”–Š‡”ǡ™Šƒ–‹•DzŽ‹…‡•‡†dz„›–Š‡ˆ‘”‡‹‰ǡ‘Ǧ”‡•‹†‡–•—’’Ž‹‡”–‘–Š‡†‹•–”‹„—–‘”ƒ†”‡•‘Ž†–‘–Š‡”‡•‹†‡–
‡†Ǧ—•‡”ǡ‘”†‹”‡…–Ž›•—’’Ž‹‡†–‘–Š‡”‡•‹†‡–‡†Ǧ—•‡”ǡ‹•‹ˆƒ…––Š‡•ƒŽ‡‘ˆƒ’Š›•‹…ƒŽ‘„Œ‡…–™Š‹…Š…‘–ƒ‹•ƒ
‡„‡††‡†…‘’—–‡”’”‘‰”ƒ‡ǡƒ†‹•–Š‡”‡ˆ‘”‡ǡƒ•ƒŽ‡‘ˆ‰‘‘†•Ǥ

—”–Š‡”ǡ‰‹˜‡–Š‡†‡ϐ‹‹–‹‘‘ˆ”‘›ƒŽ–‹‡•…‘–ƒ‹‡†‹”–‹…Ž‡ͳʹ‘ˆ–Š‡•ǡ‹–‹•…Ž‡ƒ”–Šƒ––Š‡”‡‹•‘‘„Ž‹‰ƒ–‹‘
‘ –Š‡ ’‡”•‘• ‡–‹‘‡† ‹ •‡…–‹‘ ͳͻͷ ‘ˆ –Š‡ …‘‡ ƒš …– –‘ †‡†—…– –ƒš ƒ– •‘—”…‡ǡ ƒ• –Š‡ †‹•–”‹„—–‹‘
ƒ‰”‡‡‡–•Ȁ•‹–Š‡ˆƒ…–•‘ˆ–Š‡•‡…ƒ•‡•†‘‘–…”‡ƒ–‡ƒ›‹–‡”‡•–‘””‹‰Š–‹•—…Š†‹•–”‹„—–‘”•Ȁ‡†Ǧ—•‡”•ǡ
™Š‹…Š™‘—Ž†ƒ‘—––‘–Š‡—•‡‘ˆ‘””‹‰Š––‘—•‡ƒ›…‘’›”‹‰Š–ǤŠ‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹–Š‡…‘‡ƒš…–
ȋ•‡…–‹‘ͻȋͳȌȋ˜‹ȌǡƒŽ‘‰™‹–Š‡š’Žƒƒ–‹‘•ʹƒ†Ͷ–Š‡”‡‘ˆȌǡ™Š‹…Š†‡ƒŽ™‹–Š”‘›ƒŽ–›ǡ‘–„‡‹‰‘”‡„‡‡ϐ‹…‹ƒl to
–Š‡ƒ••‡••‡‡•ǡŠƒ˜‡‘ƒ’’Ž‹…ƒ–‹‘‹–Š‡ˆƒ…–•‘ˆ–Š‡•‡…ƒ•‡•Ǥ

Š‡ ƒ‘—–• ’ƒ‹† „› ”‡•‹†‡– †‹ƒ ‡†Ǧ—•‡”•Ȁ†‹•–”‹„—–‘”• –‘ ‘Ǧ”‡•‹†‡– …‘’—–‡” •‘ˆ–™ƒ”‡
ƒ—ˆƒ…–—”‡”•Ȁ•—’’Ž‹‡”•ǡ ƒ• …‘•‹†‡”ƒ–‹‘ ˆ‘” –Š‡ ”‡•ƒŽ‡Ȁ—•‡ ‘ˆ –Š‡ …‘’—–‡” •‘ˆ–™ƒ”‡ –Š”‘—‰Š •Ȁ
†‹•–”‹„—–‹‘ƒ‰”‡‡‡–•ǡ‹•‘––Š‡’ƒ›‡–‘ˆ”‘›ƒŽ–›ˆ‘”–Š‡—•‡‘ˆ…‘’›”‹‰Š–‹–Š‡…‘’—–‡”•‘ˆ–™ƒ”‡ǡ
ƒ†–Šƒ––Š‡•ƒ‡†‘‡•‘–‰‹˜‡”‹•‡–‘ƒ›‹…‘‡–ƒšƒ„Ž‡‹†‹ƒǡƒ•ƒ”‡•—Ž–‘ˆ™Š‹…Š–Š‡’‡”•‘•”‡ˆ‡””‡†
–‘‹•‡…–‹‘ͳͻͷ‘ˆ–Š‡…–™‡”‡‘–Ž‹ƒ„Ž‡–‘†‡†—…–ƒ›—†‡”•‡…–‹‘ͳͻͷ‘ˆ–Š‡…–Ǥ
Lesson 9 Ȉ Procedural Compliance 557

LESSON ROUND-UP

Ȉ Š‡…‘‡Ǧ–ƒš…–’”‘˜‹†‡•ˆ‘”…‘ŽŽ‡…–‹‘ƒ†”‡…‘˜‡”›‘ˆ‹…‘‡Ǧ–ƒš‹–Š‡ˆ‘ŽŽ‘™‹‰™ƒ›•ǡƒ‡Ž›ǡ

ȋ‹Ȍ †‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡‹”‡•’‡…–‘ˆ‹…‘‡„›™ƒ›‘ˆ•ƒŽƒ”‹‡•ǡ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡ‹–‡”‡•–
‘–Š‡”–Šƒ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡ™‹‹‰•ˆ”‘Ž‘––‡”‹‡•ƒ†…”‘••™‘”†’—œœŽ‡•ǡ™‹‹‰•ˆ”‘
Š‘”•‡Ǧ”ƒ…‡ǡ ‹•—”ƒ…‡ …‘‹••‹‘ǡ †‹˜‹†‡†•ǡ ’ƒ›‡– –‘ …‘–”ƒ…–‘”• ‘” •—„…‘–”ƒ…–‘”• ƒ†
’ƒ›‡–•–‘‘Ǧ”‡•‹†‡–•Ǣ

ȋ‹‹Ȍ ƒ†˜ƒ…‡’ƒ›‡–‘ˆ‹…‘‡Ǧ–ƒš„‡ˆ‘”‡–Š‡ƒ••‡••‡–„›–Š‡ƒ••‡••‡‡Š‹•‡ŽˆǢ

ȋ‹‹‹Ȍ †‹”‡…–’ƒ›‡–‘ˆ‹…‘‡Ǧ–ƒš„›–Š‡ƒ••‡••‡‡‘•‡ŽˆǦƒ••‡••‡–Ǣƒ†

ȋ‹˜Ȍ ƒˆ–‡”–Š‡ƒ••‡••‡–‹•ƒ†‡„›–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ

Ȉ ‡…–‹‘•ͳͻʹ–‘ʹͲ͸‘ˆ–Š‡…‘‡Ǧ–ƒš…–Žƒ›†‘™–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡Ǥ

Ȉ ‡…–‹‘ͳͻ͹’”‘˜‹†‡•–Šƒ–‘†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡‹•–‘„‡ƒ†‡ˆ”‘ȋ‹Ȍ‹–‡”‡•–‘•‡…—”‹–‹‡•ǡȋ‹‹Ȍ
†‹˜‹†‡†•ǡƒ†ȋ‹‹‹Ȍ’ƒ›‡–•‹”‡•’‡…–‘ˆ†‡’‘•‹–•—†‡”ǡ‡–…Ǥ‹ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǣ

ȋƒȌ Š‡”‡…‹’‹‡–‘ˆ•—…Š‹…‘‡‹•ƒ‹†‹˜‹†—ƒŽƒ†”‡•‹†‡–‹†‹ƒǤ

ȋ„Ȍ —…Š’‡”•‘ˆ—”‹•Š‡•ƒ†‡…Žƒ”ƒ–‹‘‹™”‹–‹‰‹†—’Ž‹…ƒ–‡ǡ‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†˜‡”‹ϐ‹‡†‹–Š‡
’”‡•…”‹„‡†ƒ‡”ǡ–‘–Š‡’ƒ›‡”‘ˆ•—…Š‹…‘‡–‘–Š‡‡ˆˆ‡…––Šƒ––Š‡–ƒš‘Š‹•‡•–‹ƒ–‡†–‘–ƒŽ‹…‘‡‘ˆ
–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š‹…‘‡‹•–‘„‡‹…Ž—†‡†ˆ‘”…‘’—–‹‰Š‹•–‘–ƒŽ‹…‘‡™‹ŽŽ„‡‹ŽǤ

Ȉ ‡…–‹‘ʹͲ͹Ǧʹͳͻ‘ˆ–Š‡…‘‡ƒš…–†‡ƒŽ•™‹–Š–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘ƒ†˜ƒ…‡’ƒ›‡–‘ˆ–ƒšǤƒ†˜ƒ…‡

’ƒ›‡–‘ˆ–ƒšǡ–Š‡ƒ••‡••‡‡Šƒ•–‘’ƒ›–ƒš‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”—†‡”‡•–‹ƒ–‡†‹…‘‡™Š‹…Š‹•–‘„‡–ƒš‡†
‹–Š‡•—„•‡“—‡–ƒ••‡••‡–›‡ƒ”Ǥ–ˆ‘ŽŽ‘™•–Š‡†‘…–”‹‡‘™ƒ•’ƒ›ƒ•›‘—‡ƒ”•…Š‡‡Ǥ–‹•‘„Ž‹‰ƒ–‘”›
ˆ‘”ƒƒ••‡••‡‡–‘’ƒ›ƒ†˜ƒ…‡–ƒš™Š‡”‡–Š‡ƒ†˜ƒ…‡–ƒš’ƒ›ƒ„Ž‡‹••ǤͳͲǡͲͲͲ‘”‘”‡ȏȋ‡…–‹‘ʹͲͺȌȐǤ

Ȉ ‹Ž‹‰‘ˆ‡–—”ǣŠ‡’”‘…‡†—”‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ˆ‘”ƒ‹‰ƒƒ••‡••‡–‘ˆ‹…‘‡„‡‰‹•
™‹–Š–Š‡ϐ‹Ž‹‰‘ˆƒ”‡–—”‘ˆ‹…‘‡Ǥ‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…–…‘–ƒ‹•–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–Š‡
ˆ—”‹•Š‹‰‘ˆƒ”‡–—”‘ˆ‹…‘‡Ǥ

Ȉ Ǧ ‹Ž‹‰‘ˆ‡–—”ǣŠ‡…‘‡ƒš‡’ƒ”–‡–Šƒ•‹–”‘†—…‡†‘Ž‹‡ˆƒ…‹Ž‹–›‹ƒ††‹–‹‘–‘…‘˜‡–‹‘ƒŽ
‡–Š‘† –‘ ϐ‹Ž‡ ”‡–—” ‘ˆ ‹…‘‡Ǥ Š‡ ’”‘…‡•• ‘ˆ ‡Ž‡…–”‘‹…ƒŽŽ› ϐ‹Ž‹‰ ‘ˆ …‘‡ ƒš ”‡–—” –Š”‘—‰Š –Š‡
‘†‡‘ˆ‹–‡”‡–ƒ……‡••‹•…ƒŽŽ‡†‡Ǧϐ‹Ž‹‰‘ˆ”‡–—”Ǥ

Ȉ ‡”ƒ‡–……‘—–—„‡”ǣ˜‡”›’‡”•‘ǡ™Š‘Šƒ•‘–„‡‡ƒŽŽ‘––‡†ƒ›’‡”ƒ‡–ƒ……‘—–—„‡”ǡ‹•
‘„Ž‹‰‡†–‘‘„–ƒ‹’‡”ƒ‡–ƒ……‘—–—„‡”ǡ‹ˆǢ

ȋƒȌ ‹ˆŠ‹•–‘–ƒŽ‹…‘‡ƒ••‡••ƒ„Ž‡†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”‡š…‡‡†•–Š‡ƒš‹—ƒ‘—–™Š‹…Š‹•‘–
…Šƒ”‰‡ƒ„Ž‡–‘–ƒš‘”

ȋ„Ȍ ƒ›’‡”•‘…ƒ””›‹‰‘„—•‹‡••‘”’”‘ˆ‡••‹‘™Š‘•‡–‘–ƒŽ•ƒŽ‡•–—”‘˜‡”‘”‰”‘••”‡…‡‹’–•ƒ”‡‘”‹•
Ž‹‡Ž›–‘‡š…‡‡†•ǤͷǡͲͲǡͲͲͲ‹ƒ›’”‡˜‹‘—•›‡ƒ”‘”

ȋ…Ȍ ‹•”‡“—‹”‡†–‘ˆ—”‹•Šƒ”‡–—”‘ˆ‹…‘‡—†‡”‡…–‹‘ͳ͵ͻǤ

Ȉ ‡ˆ—† ‡ƒ• Dz–‘ ”‡’ƒ›dz ‘” ”‡•–‘”‡ ™Šƒ– ™ƒ• –ƒ‡ —†‡” –Š‡ ‹…‘‡Ǧ–ƒš Žƒ™Ǥ ‡ˆ—†• ƒ”‹•‡ ‹ –Š‘•‡
…ƒ•‡•™Š‡”‡–Š‡ƒ‘—–‘ˆ–ƒš’ƒ‹†„›ƒ’‡”•‘‘”‘Š‹•„‡ŠƒŽˆ‹•‰”‡ƒ–‡”–Šƒ–Š‡ƒ‘—–™‹–Š™Š‹…ŠŠ‡
‹•’”‘’‡”Ž›…Šƒ”‰‡ƒ„Ž‡ˆ‘”–Šƒ–›‡ƒ”Ǥ
558 Lesson 9 Ȉ EP-TL

TEST YOURSELF

ȋŠ‡•‡ƒ”‡‡ƒ–ˆ‘””‡Ǧ…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘ǤȌ
Multiple Choice Questions “MCQs”
ͳǤ ”Ǥ‹Ž™Š‘‹•ƒ‘Ǧ”‡•‹†‡–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Šƒ•’ƒ‹†…‘•—Ž–ƒ…›ˆ‡‡•‘ˆ•ǤͷͲŽƒŠ•
–‘–†ǡƒ‘Ǧ”‡•‹†‡–ˆ‘”‡‹‰…‘’ƒ›‹…‘‡…–‹‘–‘ƒ’”‘Œ‡…–ȀŽ‹ƒ‹•‘‘ˆϐ‹…‡‹†‹ƒǤ†‡”™Š‹…Š
•‡…–‹‘”Ǥ‹Ž‹•”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡‘–Š‡ƒ„‘˜‡’ƒ›‡–ǫ
ƒȌ ‡…–‹‘ͳͻͶ ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳ
„Ȍ ‡…–‹‘ͳͻͷ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳ
…Ȍ ‘‹•”‡“—‹”‡†–‘„‡†‡†—…–‡†
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ„Ȍ
ʹǤ –‡”‡•–‘†‡ˆ‡”‡–‘ˆƒ†˜ƒ…‡–ƒš‹•Ž‡˜‹‡†—†‡”•‡…–‹‘ǣ
ƒȌ ‡…–‹‘ʹ͵Ͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
„Ȍ ‡…–‹‘ʹ͵Ͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
…Ȍ ‡…–‹‘ʹ͵Ͷ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
†Ȍ ‡…–‹‘ʹͲͳ‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳ
•™‡”ǣȋ…Ȍ
͵Ǥ Š‡‡”–‹ϐ‹…ƒ–‡‹••—‡†„›ƒ‡’Ž‘›‡”–‘Š‹•‡’Ž‘›‡‡•‹…ƒ•‡‘ˆ•ƒŽƒ”›‹…‘‡‹•
ƒȌ ‘”ͳ͸
„Ȍ ‘”ʹ͸
…Ȍ ‘”ʹ͸
†Ȍ ‘”ʹ͸
•™‡”ǣȋƒȌ
ͶǤ —‘–‹‰‘ˆ‹•…‘’—Ž•‘”›‹™Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ƒȌ ‡’‘•‹–‡š…‡‡†‹‰•ǤͷͲǡͲͲͲ‹‘•–ˆϐ‹…‡ƒ˜‹‰•ƒ
„Ȍ ƒ›‡–•–‘Š‘–‡Ž•‘ˆ„‹ŽŽ•‘ˆ•ǤͷͲǡͲͲͲƒ–ƒ›‘‡–‹‡
…Ȍ ‘–ŠDzdzƒ†Dzdz
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋƒȌ
ͷǤ ‘”ƒ‹‰ƒ’’Ž‹…ƒ–‹‘‘Ž‹‡ǡƒ’‡”•‘•ŠƒŽŽϐ‹Ž‡Š‹•ƒ’’Ž‹…ƒ–‹‘‹ ‘”‘Ǥ
ƒȌ Ͷͻ
„Ȍ Ͷͻ
…Ȍ Ͷͻ
†Ȍ Ͷͻ
•™‡”ǣȋ…Ȍ
Lesson 9 Ȉ Procedural Compliance 559

LIST OF FURTHER READINGS

Ȉ Direct Taxes Law and Practice

 —–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
 —„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
 —–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
 —„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES (Including Websites and Video Links)

Ȉ Income Tax Act, 1961:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁƒ…–•Ȁ‹…‘‡Ǧ–ƒšǦƒ…–Ǥƒ•’š

Ȉ Income Tax Rules, 1962:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ”—Ž‡•Ȁ‹…‘‡Ǧ–ƒšǦ”—Ž‡•Ǧͳͻ͸ʹƒ•’š
Ȉ Circulars:Š––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ…‹”…—Žƒ”•Ǥƒ•’š
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϐ‹…ƒ–‹‘•Ǥƒ•’š
560 Lesson 9 Ȉ EP-TL
Lesson 10 Assessment, Appeals & Revision
Key Concepts One Learning Objectives
Should Know To understand:
Ȉ ••‡••‡– Ȉ Š‡˜ƒ”‹‘—•…‘‡Ǧ–ƒš—–Š‘”‹–‹‡•ǡ–Š‡‹”‘™‡”•ǡ —…–‹‘•ǡ
Ȉ ƒ…‡Ž‡•• —”‹•†‹…–‹‘ƒ†‘–”‘Ž
••‡••‡– Ȉ Šƒ–‹•••‡••‡–ǫ
Ȉ ‡Žˆ••‡••‡– Ȉ ›’‡•‘ˆ••‡••‡–
Ȉ …”—–‹› Ȉ Šƒ–‹•Ǧ••‡••‡–ǫ
••‡••‡– Ȉ Šƒ–‹• ƒ…‡Ž‡••••‡••‡–ǫ
Ȉ ‡•– —†‰‡‡– Ȉ Š‡…ƒ‘”†‡”ˆ‘”‡Ǧ••‡••‡–„‡‹••—‡†ǫ
••‡••‡– Ȉ Šƒ–ƒ”‡–Š‡’”‘˜‹•‹‘•ˆ‘”ϐ‹Ž‹‰’’‡ƒŽ•ǫ
Ȉ …‘‡•…ƒ’‹‰ Ȉ Šƒ–‹•–Š‡’”‘…‡†—”‡–‘ϐ‹Ž‡ƒƒ’’Ž‹…ƒ–‹‘„‡ˆ‘”‡–Š‡
••‡••‡– ’’‡ŽŽƒ–‡—–Š‘”‹–›ǫ
Ȉ Š‡‘”†‡”‘ˆ’’‡ƒŽ…ƒ„‡”‡˜‹•‡†ǫ
Ȉ ’’‡ƒŽ
Ȉ Šƒ–‹•–Š‡‰”‘—†ƒ†“—ƒ–—‘ˆ’‡ƒŽ–‹‡•‹’‘•‡†ǫ
Ȉ ƒ…‡Ž‡••’’‡ƒŽ
Ȉ ‡˜‹•‹‘
Ȉ Ǧ‡ƒŽ–›
Lesson Outline
Ȉ –”‘†—…–‹‘ ‘ ‘™‡”•‘ˆ–Š‡‘‹••‹‘‡”
Ȉ …‘‡ƒš—–Š‘”‹–‹‡• ȋ’’‡ƒŽ•Ȍ
ȋ’’‘‹–‡–ƒ†‘–”‘ŽȌ Ȉ ƒ…‡Ž‡••’’‡ƒŽ•
Ȉ —”‹•†‹…–‹‘‘ˆ…‘‡ƒš Ȉ ’’‡ƒŽ„‡ˆ‘”‡’’‡ŽŽƒ–‡”‹„—ƒŽ
—–Š‘”‹–‹‡• ‘ ’’‡ƒŽƒ„Ž‡‘”†‡”•
Ȉ ‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒšȋȌ ‘ ”‘…‡†—”‡ˆ‘”ϐ‹Ž‹‰’’‡ƒŽ
Ȉ ••‡••‡– ‘ ”†‡”‘ˆ’’‡ŽŽƒ–‡”‹„—ƒŽ
Ȉ Ǧ••‡••‡–• ‘ ”‘…‡†—”‡‘ˆ’’‡ŽŽƒ–‡”‹„—ƒŽ
Ȉ ƒ…‡Ž‡••••‡••‡– Ȉ ’’‡ƒŽ‡ˆ‘”‡‹‰Š‘—”–
Ȉ …‘‡•…ƒ’‹‰••‡••‡– Ȉ ’’‡ƒŽ‡ˆ‘”‡—’”‡‡‘—”–
Ȉ ••‡••‡–‹…ƒ•‡‘ˆ‡ƒ”…Š Ȉ ‡˜‹•‹‘‘ˆ‘”†‡”•„›
‘”‡“—‹•‹–‹‘ ‘‹••‹‘‡”‘ˆ…‘‡ƒš
Ȉ ‹‡‹‹–ˆ‘”…‘’Ž‡–‹‘‘ˆ Ȉ ‡˜‹•‹‘‘ˆ‘”†‡”•’”‡Œ—†‹…‹ƒŽ–‘
••‡••‡–‘”‡Ǧ••‡••‡– –Š‡‹–‡”‡•–‘ˆ‡˜‡—‡
Ȉ ’’‡ƒŽ Ȉ ‡˜‹•‹‘‘ˆ‘”†‡”•‹–Š‡–‡”‡•–
Ȉ ’’‡ƒŽ„‡ˆ‘”‡‘‹••‹‘‡” ‘ˆ••‡••‡‡
ȋ’’‡ƒŽ•Ȍ Ȉ ‹”…—•–ƒ…‡•‹™Š‹…Š‘
‘ ’’‡ƒŽƒ„Ž‡”†‡”„‡ˆ‘”‡ ”‡˜‹•‹‘…ƒ„‡ƒ†‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ Ȉ ˆˆ‡…‡ƒ†‡ƒŽ–‹‡•
‘ ‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘–‘ Ȉ ˆˆ‡…‡ƒ†”‘•‡…—–‹‘
’”‡ˆ‡”ƒ’’‡ƒŽ Ȉ Ǧ
‘ ƒ›‡–‘ˆ–ƒš„‡ˆ‘”‡ Ȉ 
ϐ‹Ž‹‰’’‡ƒŽ Ȉ   

‘ ”‘…‡†—”‡ˆ‘”ϐ‹Ž‹‰ƒ Ȉ  
’’‡ƒŽ
562 Lesson 10 Ȉ EP-TL

Regulatory Framework
Sections Income-tax Act, 1961
‡…–‹‘ͳͳ͸ …‘‡Ǧ–ƒš—–Š‘”‹–‹‡•
‡…–‹‘ͳͳ͹ ’’‘‹–‡–‘ˆ…‘‡Ǧ–ƒš—–Š‘”‹–‹‡•
‡…–‹‘ͳͳͺ ‘–”‘Ž‘ˆ…‘‡Ǧ–ƒš—–Š‘”‹–‹‡•
‡…–‹‘ͳͳͻ •–”—…–‹‘•–‘—„‘”†‹ƒ–‡—–Š‘”‹–‹‡•
‡…–‹‘ͳʹͲ —”‹•†‹…–‹‘‘ˆ…‘‡Ǧ–ƒš—–Š‘”‹–‹‡•
‡…–‹‘ͳͶͲ ‡Žˆ••‡••‡–
‡…–‹‘ͳͶʹ “—‹”›„‡ˆ‘”‡••‡••‡–
‡…–‹‘ͳͶʹ •–‹ƒ–‹‘‘ˆƒŽ—‡‘ˆƒ••‡–•„›ƒŽ—ƒ–‹‘ˆϐ‹…‡”
‡…–‹‘ͳͶʹ ƒ…‡Ž‡••“—‹”›ƒ†ƒŽ—ƒ–‹‘
‡…–‹‘ͳͶ͵ȋͳȌ —ƒ”›••‡••‡–
‡…–‹‘ͳͶ͵ȋʹȌ …”—–‹›••‡••‡–
‡…–‹‘ͳͶͶ ‡•– —†‰‡‡–••‡••‡–
‡…–‹‘ͳͶͶ ƒ…‡Ž‡••••‡••‡–
‡…–‹‘ͳͶ͹ …‘‡•…ƒ’‹‰••‡••‡–‘”‡Ǧ••‡••‡–
‡…–‹‘ͳͶͺ ••—‡‘ˆ‘–‹…‡™Š‡”‡‹…‘‡Šƒ••…ƒ’‡†••‡••‡–
‡…–‹‘ͳͶͺ ‘†—…–‹‰‹“—‹”›ǡ’”‘˜‹†‹‰‘’’‘”–—‹–›„‡ˆ‘”‡‹••—‡‘ˆ‘–‹…‡—Ȁ•ͳͶͺ
‡…–‹‘ͳͷͳ ƒ…‡Ž‡••••‡••‡–‘ˆ…‘‡•…ƒ’‹‰••‡••‡–
‡…–‹‘ͳͷ͵ ••‡••‡–‹…ƒ•‡‘ˆ‡ƒ”…Š‘”‡“—‹•‹–‹‘
‡…–‹‘ͳͷ͵ ‹‡Ž‹‹–ˆ‘”…‘’Ž‡–‹‘‘ˆ••‡••‡–•ƒ†‡Ǧƒ••‡••‡–•
‡…–‹‘ʹͶ͸ ’’‡ƒŽƒ„Ž‡‘”†‡”„‡ˆ‘”‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ
‡…–‹‘ʹͶͻȋͳȌ ”‘…‡†—”‡ˆ‘”ϐ‹Ž‹‰‘ˆ’’‡ƒŽ–‘‘‹••‹‘‡”’’‡ƒŽ•
‡…–‹‘ʹͷͲȋ͸Ȍ ƒ…‡Ž‡••’’‡ƒŽ
‡…–‹‘ʹͷͳ ‘™‡”•‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ
‡…–‹‘ʹͷʹ ’’‡ŽŽƒ–‡”‹„—ƒŽ
‡…–‹‘ʹͷ͵ȋͳȌǡȋʹȌ ’’‡ƒŽƒ„Ž‡”†‡”•–‘’’‡ŽŽƒ–‡”‹„—ƒŽ
‡…–‹‘ʹͷ͵ȋ͵ȌǡȋͶȌƬȋ͸ȌȐ ”‘…‡†—”‡ˆ‘”ϐ‹Ž‹‰ƒ’’‡ƒŽ–‘’’‡ŽŽƒ–‡”‹„—ƒŽ
‡…–‹‘ʹͷͶ ”†‡”‘ˆ’’‡ŽŽƒ–‡”‹„—ƒŽ
‡…–‹‘ʹͷͷ ”‘…‡†—”‡‘ˆ’’‡ŽŽƒ–‡”‹„—ƒŽ
‡…–‹‘ʹ͸Ͳ ’’‡ƒŽ–‘‹‰Š‘—”–
‡…–‹‘ʹ͸ͳ ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–
‡…–‹‘ʹ͸͵ ‡˜‹•‹‘‘ˆ‘”†‡”•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–‘ˆ‡˜‡—‡
‡…–‹‘ʹ͸Ͷ ‡˜‹•‹‘‘ˆ‘”†‡”•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–‘ˆ••‡••‡‡
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͸͵

INTRODUCTION
Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–…‘–ƒ‹‡†‹‡…–‹‘•ͳͳ͸–‘ͳ͵͸•’‡…‹ˆ›‹…‘‡–ƒšƒ—–Š‘”‹–‹‡•ǡ–Š‡’”‘…‡†—”‡
”‡Žƒ–‹‰–‘–Š‡ƒ’’‘‹–‡–‘ˆ–Š‡˜ƒ”‹‘—•‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•ǡ–Š‡‹”’‘™‡”•ǡˆ—…–‹‘•ǡŒ—”‹•†‹…–‹‘ƒ†…‘–”‘ŽǤ
Š‡’”‘…‡†—”‡—†‡”–Š‡…‘‡Ǧ–ƒš…–ˆ‘”ƒ‹‰ƒƒ••‡••‡–‘ˆ‹…‘‡„‡‰‹•™‹–Š–Š‡ϐ‹Ž‹‰‘ˆƒ”‡–—”‘ˆ
‹…‘‡Ǥ‡…–‹‘ͳ͵ͻ‘ˆ–Š‡…–…‘–ƒ‹•–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–Š‡ˆ—”‹•Š‹‰‘ˆƒ”‡–—”‘ˆ‹…‘‡Ǥ
–Š‡„ƒ•‹•‘ˆ”‡–—”‘ˆ‹…‘‡–Š‡‹…‘‡–ƒšƒ—–Š‘”‹–›ƒ‡•–Š‡ƒ••‡••‡–Ǥ
Š‡ …‘‡Ǧ–ƒš …– ’”‘˜‹†‡• ˆ‘” ˜ƒ”‹‘—• ”‡‡†‹‡• –‘ ƒ ƒ••‡••‡‡ ‘ …‘’Ž‡–‹‘ ‘ˆ –Š‡ ƒ••‡••‡–Ǥ Š‡ ƒ‹
”‡‡†‹‡• ƒ˜ƒ‹Žƒ„Ž‡ –‘ ƒ ƒ••‡••‡‡ ‘ …‘’Ž‡–‹‘ ‘ˆ –Š‡ ƒ••‡••‡– ƒ”‡ ’’‡ƒŽ•ǡ ‡˜‹•‹‘ǡ ƒ† ‡…–‹ϐ‹…ƒ–‹‘Ǥ ŽŽ
–Š‡•‡”‡‡†‹‡•™‘”‹†‹ˆˆ‡”‡–ƒ”‡ƒ•Ǥ‘™‡˜‡”ǡ•–”‹…–Ž›•’‡ƒ‹‰–Š‡”‡‡†‹‡•ƒ”‡‘–ƒŽ–‡”ƒ–‹˜‡–‘‡ƒ…Š‘–Š‡”
„—–ƒ––‹‡•‘”‡–Šƒ‘‡”‡‡†‹ƒŽ’”‘…‡‡†‹‰ƒ›„‡—•‡†ƒ•…‘’Ž‹‡–ƒ”›–‘‡ƒ…Š‘–Š‡”•‘ƒ•–‘ƒ…Š‹‡˜‡–Š‡
„‡•–”‡•—Ž–•Ǥ
Š‡”‹‰Š––‘ƒ’’‡ƒŽƒ”‹•‡•™Š‡”‡–Š‡–ƒš’ƒ›‡”‹•ƒ‰‰”‹‡˜‡†„›–Š‡‘”†‡”’ƒ••‡†„›–Š‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›ǤŠ‡”‡
–Š‡ ••‡••‹‰ ˆϐ‹…‡” ƒ……‡’–• –Š‡ ”‡–—” ϐ‹Ž‡† „› –Š‡ –ƒš ’ƒ›‡” ƒ† ’ƒ••‡• ƒ ‘”†‡” ƒ‹‰ ‘ ‘†‹ϐ‹…ƒ–‹‘ǡ ƒ
ƒ’’‡ƒŽ†‘‡•‘–Ž‹‡ƒ‰ƒ‹•––Šƒ–‘”†‡”ƒ•–Š‡–ƒš’ƒ›‡”…ƒ‘–„‡•ƒ‹†–‘„‡ƒ‰‰”‹‡˜‡†‘ˆ–Šƒ–‘”†‡”Ǥ
INCOME-TAX AUTHORITIES (APPOINTMENT AND CONTROL) [SECTION 116 TO 119A]
Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡–Š‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•™Š‘ƒ”‡•–ƒ–—–‘”‹Ž›‡’‘™‡”‡†–‘ƒ†‹‹•–‡”–Š‡Žƒ™‘ˆ…‘‡ƒšǣ
‹Ǥ Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•ǡ…‘•–‹–—–‡†—†‡”–Š‡‡–”ƒŽ‘ƒ”†•‘ˆ‡˜‡—‡…–ǡͳͻ͸͵
‹‹Ǥ ”‹…‹’ƒŽ‹”‡…–‘”
‡‡”ƒŽ‘ˆ…‘‡Ǧ–ƒš‘””‹…‹’ƒŽŠ‹‡ˆ‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
‹‹‹Ǥ ‹”‡…–‘”•Ǧ
‡‡”ƒŽ‘ˆ…‘‡Ǧ–ƒš‘”Š‹‡ˆ‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
‹˜Ǥ ”‹…‹’ƒŽ‹”‡…–‘”‘ˆ…‘‡Ǧ–ƒš‘””‹…‹’ƒŽ‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
˜Ǥ ‹”‡…–‘”•‘ˆ…‘‡Ǧ–ƒš‘”‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš‘”‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒšȋ’’‡ƒŽ•Ȍ
˜‹Ǥ ††‹–‹‘ƒŽ‹”‡…–‘”•‘ˆ…‘‡Ǧ–ƒš‘”††‹–‹‘ƒŽ‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
˜‹‹Ǥ ‘‹–‹”‡…–‘”•‘ˆ…‘‡ƒš‘” ‘‹–‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
˜‹‹‹Ǥ ‡’—–›‹”‡…–‘”•‘ˆ…‘‡Ǧ–ƒš‘”‡’—–›‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
‹šǤ ••‹•–ƒ–‹”‡…–‘”•‘ˆ…‘‡Ǧ–ƒš‘”••‹•–ƒ–‘‹••‹‘‡”•‘ˆ…‘‡Ǧ–ƒš
šǤ …‘‡Ǧ–ƒšˆϐ‹…‡”•
š‹Ǥ ƒš‡…‘˜‡”›ˆϐ‹…‡”•
š‹‹Ǥ …‘‡Ǧ–ƒš•’‡…–‘”•
Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–…‘–ƒ‹‡†‹‡…–‹‘•ͳͳ͸–‘ͳ͵͸•’‡…‹ˆ›‹…‘‡–ƒšƒ—–Š‘”‹–‹‡•ǡ–Š‡’”‘…‡†—”‡
”‡Žƒ–‹‰–‘–Š‡ƒ’’‘‹–‡–‘ˆ–Š‡˜ƒ”‹‘—•‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•ǡ–Š‡‹”’‘™‡”•ǡˆ—…–‹‘•ǡŒ—”‹•†‹…–‹‘ƒ†…‘–”‘ŽǤ
ƒ††‹–‹‘–‘–Š‡˜ƒ”‹‘—•’”‘˜‹•‹‘•…‘–ƒ‹‡†‹–Š‡•‡•‡…–‹‘•ǡ–Š‡…‘‡Ǧ–ƒš‡’ƒ”–‡–ˆ‘ŽŽ‘™•–Š‡•›•–‡‘ˆ
ˆ—…–‹‘ƒŽƒŽŽ‘…ƒ–‹‘ƒ††‹•–”‹„—–‹‘‘ˆ™‘”™‹–Šƒ˜‹‡™–‘•’‡…‹ƒŽ‹œ‹‰ƒ†…‘…‡–”ƒ–‹‰‹–Š‡˜ƒ”‹‘—•ƒ”‡ƒ•‘ˆ
‹…‘‡Ǧ–ƒšƒ••‡••‡–ǡ’”‘…‡†—”‡ǡ…‘ŽŽ‡…–‹‘ǡ”‡…‘˜‡”›ǡ”‡ˆ—†ǡƒ’’‡ƒŽ•ǡ‡–…Ǥ
‘”ƒŽŽ’—”’‘•‡•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ–Š‡…‘‡ƒšƒ—–Š‘”‹–‹‡•ƒ”‡˜‡•–‡†™‹–Š–Š‡˜ƒ”‹‘—•’‘™‡”•™Š‹…Šƒ”‡
˜‡•–‡†‹ƒ‘—”–‘ˆƒ™—†‡”–Š‡‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡™Š‹Ž‡–”›‹‰ƒ•—‹–‹”‡•’‡…–‘ˆƒ›…ƒ•‡Ǥ‘”‡’ƒ”–‹…—Žƒ”Ž›ǡ
–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ƒ†–Š‡’‘™‡”•‰”ƒ–‡†–‘–Š‡–ƒšƒ—–Š‘”‹–‹‡•—†‡”–Š‡…‘†‡™‘—Ž†‹
”‡•’‡…–‘ˆǣ
 ͷ͸Ͷ Lesson 10 Ȉ EP-TL

‹•…‘˜‡”›ƒ†
‹•’‡…–‹‘

••—‹‰…‘‹••‹‘• ˆ‘”…‹‰–Š‡ƒ––‡†ƒ…‡ǡ
ƒ†•—‘• ‹…Ž—†‹‰ƒ›‘ˆϐ‹…‡”‘ˆƒ
„ƒƒ†‡šƒ‹‹‰

‘ŽŽ‡…–‹‰…‡”–ƒ‹ ‘’‡ŽŽ‹‰–Š‡’”‘†—…–‹‘
‹ˆ‘”ƒ–‹‘ȏ‡…–‹‘ ‘ˆ„‘‘•‘ˆƒ……‘—–•ƒ†
ͳ͵͵Ȑ –Š‡†‘…—‡–•

˜‡”›‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ‹˜‹Ž‘—”–ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡…–‹‘ͳͻͷƒ†Šƒ’–‡”‘ˆ
–Š‡‘†‡‘ˆ”‹‹ƒŽ”‘…‡†—”‡ǡͳͻ͹͵ǤŠ‡’‘™‡”•‰”ƒ–‡†ƒ”‡‰‡‡”ƒŽŽ›“—ƒ•‹ǦŒ—†‹…‹ƒŽǤ’ƒ”–‹…—Žƒ”ǡ–Š‡’‘™‡”•‘ˆ
…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•”‡Žƒ–‡–‘†‹•…‘˜‡”›ǡ’”‘†—…–‹‘‘ˆ‡˜‹†‡…‡‡–…Ǥǡ•‡ƒ”…Š‡•ƒ†•‡‹œ—”‡•ǡƒ’’Ž‹…ƒ–‹‘‘ˆ”‡–ƒ‹‡†
ƒ••‡–•ǡ’‘™‡”–‘…ƒŽŽˆ‘”‹ˆ‘”ƒ–‹‘ˆ”‘˜ƒ”‹‘—•’ƒ”–‹‡•ǡƒ—–Š‘”‹–‹‡•ƒ†„‘†‹‡•ǡ’‘™‡”•‘ˆ•—”˜‡›ǡ’‘™‡”•”‡Žƒ–‹‰
–‘–Š‡‹•’‡…–‹‘‘ˆ–Š‡”‡‰‹•–‡”•‘ˆ…‘’ƒ‹‡•‡–…Ǥ —”–Š‡”ǡƒŽŽ’”‘…‡‡†‹‰•—†‡”–Š‡…‘‡Ǧ–ƒš…–„‡ˆ‘”‡ƒ›
‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›—•–„‡†‡‡‡†–‘„‡Œ—†‹…‹ƒŽ’”‘…‡‡†‹‰•™‹–Š‹–Š‡‡ƒ‹‰‘ˆ‡…–‹‘•ͳͻ͵ƒ†ʹʹͺƒ†
ˆ‘”–Š‡’—”’‘•‡•‘ˆ‡…–‹‘ͳͻ͸‘ˆ–Š‡†‹ƒ‡ƒŽ‘†‡Ǥ ‘”ƒ†‡–ƒ‹Ž‡†–—†›‘ˆ–Š‡˜ƒ”‹‘—•’‘™‡”•ǡˆ—…–‹‘•ǡ
Œ—”‹•†‹…–‹‘ǡ‡–…Ǥǡ‘ˆ–Š‡†‹ˆˆ‡”‡–…Žƒ••‡•‘ˆ‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•ƒ†–Š‡‰‡‡”ƒŽ•…Š‡‡‘ˆƒ†‹‹•–”ƒ–‹‘‘ˆ–Š‡
…‘‡Ǧ–ƒš…–ǡ•–—†‡–•ƒ›”‡ˆ‡”–‘–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–Ǥ

Appointment and Control of Income-tax Authorities [Section 117 & 118]

‹Ǥ ‡…–‹‘ ͳͳ͹ ‡’‘™‡”• –Š‡ ‡–”ƒŽ
‘˜‡”‡– –‘ ƒ’’‘‹– •—…Š ’‡”•‘• ƒ• ‹– –Š‹• ϐ‹– –‘ „‡ ‹…‘‡Ǧ–ƒš
ƒ—–Š‘”‹–‹‡•Ǥ
‹‹Ǥ – ƒ› ƒŽ•‘ ƒ—–Š‘”‹•‡ –Š‡ ‘ƒ”† ‘” ƒ ”‹…‹’ƒŽ ‹”‡…–‘”
‡‡”ƒŽ ‘” ‹”‡…–‘”
‡‡”ƒŽǡ ƒ ”‹…‹’ƒŽ Š‹‡ˆ
‘‹••‹‘‡” ‘” Š‹‡ˆ ‘‹••‹‘‡” ‘” ƒ ”‹…‹’ƒŽ ‹”‡…–‘” ‘” ‹”‡…–‘” ‘” ƒ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘”
‘‹••‹‘‡”–‘ƒ’’‘‹–‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•„‡Ž‘™–Š‡”ƒ‘ˆƒ••‹•–ƒ–‘‹••‹‘‡”‘”‡’—–›
‘‹••‹‘‡”Ǥ
‹‹‹Ǥ ‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›ƒ—–Š‘”‹•‡†„›–Š‡ƒ›ƒ’’‘‹–•—…Š‡š‡…—–‹˜‡‘”‹‹•–‡”‹ƒŽ•–ƒˆˆƒ•ƒ›„‡
‡…‡••ƒ”›–‘ƒ••‹•–‹–‹–Š‡‡š‡…—–‹‘‘ˆ‹–•ˆ—…–‹‘•Ǥ
‹˜Ǥ ‡…–‹‘ ͳͳͺ ƒ—–Š‘”‹•‡• –Š‡  –‘ ƒŽ•‘ †‹”‡…–ǡ „› ™ƒ› ‘ˆ ‘–‹ϐ‹…ƒ–‹‘ǡ –Šƒ– ƒ› …‘‡Ǧ–ƒš ƒ—–Š‘”‹–› ‘”
ƒ—–Š‘”‹–‹‡••ŠƒŽŽ„‡•—„‘”†‹ƒ–‡–‘•—…Š‘–Š‡”‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›‘”ƒ—–Š‘”‹–‹‡•ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†Ǥ

Instructions to Subordinate Authorities [Section 119]

Š‡‘ƒ”†‹•‡’‘™‡”‡†–‘‹••—‡‘”†‡”•ǡ‹•–”—…–‹‘•ƒ††‹”‡…–‹‘•–‘‹–••—„‘”†‹ƒ–‡ƒ—–Š‘”‹–‹‡•ˆ”‘–‹‡–‘
–‹‡ǤŠ‡‘ƒ”†ƒ›ƒŽ•‘‹••—‡‰—‹†‡Ž‹‡ǡ’”‹…‹’Ž‡•‘”’”‘…‡†—”‡•–‘„‡ˆ‘ŽŽ‘™‡†„›‹–•…‘‡–ƒšƒ—–Š‘”‹–‹‡•ƒ†
‹ˆ ‹– ‹• ‹ –Š‡ ‹–‡”‡•– ‘ˆ ’—„Ž‹…ǡ –Š‡ –Š‡ •ƒ‡ ƒ› „‡ ’—„Ž‹•Š‡† ƒ† …‹”…—Žƒ–‡†Ǥ Š‡ ‘ƒ”† ƒŽ•‘ ‡’‘™‡”‡† –‘
ƒ—–Š‘”‹œ‡ƒ›‹…‘‡–ƒšƒ—–Š‘”‹–›–‘ƒ†‹–ƒƒ’’Ž‹…ƒ–‹‘ˆ‘”ƒ›…Žƒ‹‘ˆ‡š‡’–‹‘ǡ†‡†—…–‹‘ǡ”‡ˆ—†‘”ƒ›
‘–Š‡””‡Ž‹‡ˆ—†‡”–Š‹•ƒ…–ƒ††‡ƒŽ™‹–Š–Š‡•ƒ‡‹ˆ‹–™ƒ•‰‡—‹‡Ž›‘—–‘ˆ–Š‡–ƒš’ƒ›‡”…‘–”‘ŽǤ
Tax payer’s Charter [Section 119A]
The CBDT shall adopt and declare a tax payer’s charter and issue orders, directions, instructions and guidelines to
other Income tax authorities for the administration of such Charter.
 Lesson 10 ȈAssessment, Appeals & Revision 565

JURISDICTION OF INCOME-TAX AUTHORITIES [SECTION 120]

i. Income-tax authorities to exercise powers in accordance with CBDT directions [Section 120(1)]:Š‡
‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡••ŠƒŽŽ‡š‡”…‹•‡ƒŽŽ‘”ƒ›‘ˆ–Š‡’‘™‡”•ƒ†’‡”ˆ‘”ƒŽŽ‘”ƒ›‘ˆ–Š‡ˆ—…–‹‘•…‘ˆ‡””‡†
‘ǡ‘”ƒ••‹‰‡†–‘ǡ•—…Šƒ—–Š‘”‹–‹‡•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡†‹”‡…–‹‘•‹••—‡†„›–Š‡ˆ‘”–Š‡‡š‡”…‹•‡‘ˆ
•—…Š’‘™‡”•ƒ†’‡”ˆ‘”ƒ…‡‘ˆ–Š‡ˆ—…–‹‘•„›ƒŽŽ‘”ƒ›‘ˆ–Š‘•‡ƒ—–Š‘”‹–‹‡•Ǥ
ii. Deemed directions under section 120(1) by CBDT [Explanation to section 120(1)]: › ‹…‘‡Ǧ–ƒš
ƒ—–Š‘”‹–›ǡ „‡‹‰ ƒ ƒ—–Š‘”‹–› Š‹‰Š‡” ‹ ”ƒǡ ƒ› ‡š‡”…‹•‡ –Š‡ ’‘™‡”• ƒ† ’‡”ˆ‘” –Š‡ ˆ—…–‹‘• ‘ˆ –Š‡
‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›Ž‘™‡”‹”ƒǡ‹ˆ•‘†‹”‡…–‡†„›–Š‡Ǥ—…Š†‹”‡…–‹‘‹••—‡†„›–Š‡•ŠƒŽŽ„‡
†‡‡‡†–‘„‡ƒ†‹”‡…–‹‘‹••—‡†—†‡”–Š‡•ƒ‹†•‡…–‹‘ͳʹͲȋͳȌǤ
iii. CBDT may authorize income-tax authorities to exercise powers/perform functions:Š‡†‹”‡…–‹‘•‘ˆ
–Š‡‘ƒ”†ƒ›ƒ—–Š‘”‹•‡ƒ›‘–Š‡”‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›–‘‹••—‡‘”†‡”•‹™”‹–‹‰ˆ‘”–Š‡‡š‡”…‹•‡‘ˆ–Š‡
’‘™‡”• ƒ† ’‡”ˆ‘”ƒ…‡ ‘ˆ –Š‡ ˆ—…–‹‘• „› ƒŽŽ ‘” ƒ› ‘ˆ –Š‡ ‘–Š‡” ‹…‘‡Ǧ–ƒš ƒ—–Š‘”‹–‹‡• ™Š‘ ƒ”‡
•—„‘”†‹ƒ–‡–‘‹–Ǥ
iv. Criteria for issue of directions [Section 120(3)]:‹••—‹‰•—…Š†‹”‡…–‹‘•ǡ–Š‡‘ƒ”†ƒ›Šƒ˜‡”‡‰ƒ”†–‘
–Š‡ˆ‘ŽŽ‘™‹‰…”‹–‡”‹ƒǣ
ȋƒȌ ‡””‹–‘”‹ƒŽƒ”‡ƒǤ
ȋ„Ȍ ‡”•‘•‘”…Žƒ••‡•‘ˆ’‡”•‘•Ǥ
ȋ…Ȍ …‘‡•‘”…Žƒ••‡•‘ˆ‹…‘‡•Ǥ
ȋ†Ȍ ƒ•‡•‘”…Žƒ••‡•‘ˆ…ƒ•‡•Ǥ
v. CBDT authorisation assigning functions [Section 120(4)]: Š‡ƒ›ƒ—–Š‘”‹•‡ƒ›”‹…‹’ƒŽ‹”‡…–‘”

‡‡”ƒŽ‘”‹”‡…–‘”
‡‡”ƒŽ‘””‹…‹’ƒŽ‹”‡…–‘”‘”‹”‡…–‘”‘ˆ…‘‡Ǧ–ƒš–‘’‡”ˆ‘”•—…Šˆ—…–‹‘•‘ˆƒ›
‘–Š‡”‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›ƒ•ƒ›„‡ƒ••‹‰‡†–‘Š‹Ǥ—…Šƒ—–Š‘”‹•ƒ–‹‘ƒ›„‡–Š”‘—‰Šƒ‰‡‡”ƒŽ‘”•’‡…‹ƒŽ
‘”†‡”Ǥ
CENTRAL BOARD OF DIRECT TAXES [CBDT]

Appointment and Working of the Board

Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•™ƒ•ƒ•–ƒ–—–‘”›„‘†›…”‡ƒ–‡†—†‡”–Š‡‡–”ƒŽ‘ƒ”†•‘ˆ‡˜‡—‡…–ǡͳͻ͸͵
ȏ‡…–‹‘ʹȋͳʹȌȐǤŠ‡‘ƒ”†‹‹–•™‘”‹‰‹•…Ž‘•‡Ž›ƒ••‘…‹ƒ–‡†™‹–Š–Š‡‹‹•–”›‘ˆ ‹ƒ…‡ǤŠ‡‘ƒ”†…‘•‹•–•‘ˆƒ
…Šƒ‹”ƒƒ†•‹š‡„‡”•ǡƒŽŽ‘ˆ™Š‘ƒ”‡‡šǦ‘ˆϐ‹…‹‘’‡…‹ƒŽ‡…”‡–ƒ”›–‘–Š‡
‘˜‡”‡–‘ˆ†‹ƒǤ

Jurisdiction
–‹•–Š‡–‘’‘•–‡š‡…—–‹˜‡ƒ—–Š‘”‹–›‹–Š‡•’Š‡”‡‘ˆ‹”‡…–ƒš‡•Ǥ–•’‘™‡”•‘ˆƒ†‹‹•–”ƒ–‹‘•—’‡”˜‹•‹‘ƒ†
…‘–”‘Ž‡š–‡†‘˜‡”–Š‡™Š‘Ž‡†‡’ƒ”–‡–Ǥ
Power
(i) Power to make Rulesǣ – Šƒ• –Š‡ ’‘™‡” –‘ ƒ‡ ”—Ž‡• ȋ‡…–‹‘ ʹͻͷȌǡ •—„Œ‡…– –‘ –Š‡ ƒ’’”‘˜ƒŽ ‘ˆ ‡–”ƒŽ

‘˜‡”‡–ǡˆ‘”…ƒ””›‹‰‘—––Š‡’—”’‘•‡•‘ˆ–Š‹•…–ǤŠ‡—Ž‡•ƒ›„‡ƒ†‡ˆ‘”™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ†‹ƒǤ
(ii) To issue instructions [Section 119(1)]ǣ – ƒ› ‹••—‡ ‘”†‡”•ǡ ‹•–”—…–‹‘• ƒ† †‹”‡…–‹‘• –‘ ‹…‘‡ –ƒš
ƒ—–Š‘”‹–‹‡•ˆ‘”–Š‡’”‘’‡”ƒ†‹‹•–”ƒ–‹‘‘ˆ–Š‹•…–ƒ†•—…Šƒ—–Š‘”‹–‹‡•ƒ†ƒŽŽ‘–Š‡”’‡”•‘•‡’Ž‘›‡†‹
–Š‡‡š‡…—–‹‘‘ˆ–Š‡…–•ŠƒŽŽ‘„•‡”˜‡ƒ†ˆ‘ŽŽ‘™–Š‡•ƒ‡Ǥ‘™‡˜‡”ǡ‘•—…Š‘”†‡”•ǡ‹•–”—…–‹‘•‘”†‹”‡…–‹‘•
•ŠƒŽŽ„‡‹••—‡†•‘ƒ•–‘ǣ
Ȉ ”‡“—‹”‡ƒ›‹…‘‡–ƒšƒ—–Š‘”‹–›–‘ƒ‡ƒ’ƒ”–‹…—Žƒ”ƒ••‡••‡–‘”–‘†‹•’‘•‡‘ˆƒ’ƒ”–‹…—Žƒ”…ƒ•‡‹
ƒ’ƒ”–‹…—Žƒ”ƒ‡”Ǣ‘”
Ȉ –‡”ˆ‡”‡™‹–Š–Š‡†‹•…”‡–‹‘‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽȌ‹–Š‡‡š‡”…‹•‡‘ˆŠ‹•ƒ’’‡ŽŽƒ–‡ˆ—…–‹‘•Ǥ
(iii) Power to issue orders, guidelines, procedures [Section 119(2)(a)]: –ƒ›ǡ‹ˆ‹–…‘•‹†‡”•‹–‡…‡••ƒ”›‘”
‡š’‡†‹‡– •‘ –‘ †‘ǡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ’”‘’‡” ƒ† ‡ˆϐ‹…‹‡– ƒƒ‰‡‡– ‘ˆ –Š‡ ™‘” ‘ˆ ƒ••‡••‡– ƒ†
…‘ŽŽ‡…–‹‘‘ˆ”‡˜‡—‡ǡ‹••—‡ǡˆ”‘–‹‡–‘–‹‡ǡ‰‡‡”ƒŽ‘”•’‡…‹ƒŽ‘”†‡”•‹”‡•’‡…–‘ˆƒ›…Žƒ••‘ˆ‹…‘‡‘”
 566 Lesson 10 Ȉ EP-TL

ˆ”‹‰‡„‡‡ϐ‹–‘”…Žƒ••‘ˆ…ƒ•‡•ǡ•‡––‹‰ˆ‘”–Š†‹”‡…–‹‘•‘”‹•–”—…–‹‘•ȋ‘–„‡‹‰’”‡Œ—†‹…‹ƒŽ–‘ƒ••‡••‡‡•Ȍƒ•
–‘–Š‡‰—‹†‡Ž‹‡•ǡ’”‹…‹’Ž‡•‘”’”‘…‡†—”‡•–‘„‡ˆ‘ŽŽ‘™‡†„›‹–••—„‘”†‹ƒ–‡•‹‡š‡…—–‹‘‘ˆ–Š‡‹”†—–‹‡•Ǥ›
•—…Š‘”†‡”•ƒ›ǡˆ–Š‡‘ƒ”†‹•‘ˆ–Š‡‘’‹‹‘–Šƒ–‹–‹•‡…‡••ƒ”›‹–Š‡’—„Ž‹…‹–‡”‡•–•‘–‘†‘ǡ„‡’—„Ž‹•Š‡†
ƒ†…‹”…—Žƒ–‡†ˆ‘”‰‡‡”ƒŽ‹ˆ‘”ƒ–‹‘Ǥ
(iv) Power to relax certain provisions [Section 119(2)(a)]ǣŠ‡‘ƒ”†‹•‡’‘™‡”‡†–‘”‡Žƒš–Š‡’”‘˜‹•‹‘•
”‡Žƒ–‹‰–‘–Š‡…Šƒ”‰‡‘ˆ‹–‡”‡•–ˆ‘”†‡ˆƒ—Ž–•‹†‡†—…–‹‘‘ˆ–ƒšƒ–•‘—”…‡ǡ‘”’ƒ›‡–‘ˆ•—…Š–ƒšȏ—†‡”
‡…–‹‘ ʹͲͳȋͳȌȐ ‘” ’ƒ›‡– ‘ˆ ƒ†˜ƒ…‡ –ƒš ȋ‡…–‹‘ ʹͳͳȌ ‘” ‹–‡”‡•– ˆ‘” †‡ˆƒ—Ž–• ‹ ˆ—”‹•Š‹‰ ”‡–—”
ȋ‡…–‹‘ʹ͵ͶȌ‘”‹–‡”‡•–ˆ‘”†‡ˆƒ—Ž–•‹’ƒ›‡–‘ˆƒ†˜ƒ…‡–ƒšȋ—†‡”‡…–‹‘ʹ͵Ͷ‘”‡…–‹‘ʹ͵ͶȌ‘”
ƒ••‡••‡–ƒ†”‡…‘˜‡”›‘ˆ–ƒš‡–…Ǥ–Š‡”’”‘˜‹•‹‘•ǡ‹ƒ’’”‘’”‹ƒ–‡…ƒ•‡•ǡ‘ƒ”†ƒ›”‡Žƒš–Š‡’”‘˜‹•‹‘•‘ˆ
•‡…–‹‘•ƒ”‡ͳͳͷǡͳͳͷǡͳͳͷǡͳͳͷǡͳͳͷ ǡͳͳͷ
ǡͳͳͷǡͳͳͷ ǡͳͳͷǡͳ͵ͻǡͳͶ͵ǡͳͶͶǡͳͶ͹ǡͳͶͺǡ
ͳͷͶǡͳͷͷǡͳͷͺ ǡʹͳͳǡʹ͵Ͷǡʹ͹Ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳƒ†ʹ͹͵Ǥ
 Š‡ ‘ƒ”† ‹• ƒŽ•‘ ‡’‘™‡”‡† –‘ ”‡Žƒš –Š‡ ’”‘˜‹•‹‘• ”‡Žƒ–‹‰ –‘ –Š‡ …‘’—–ƒ–‹‘ ‘ˆ –‘–ƒŽ ‹…‘‡ ƒ†
†‡†—…–‹‘•–‘„‡ƒ†‡‹…‘’—–‹‰–‘–ƒŽ‹…‘‡‹…ƒ•‡•‘ˆ‰‡—‹‡Šƒ”†•Š‹’Ǥ–…ƒ„‡†‘‡„›ƒ‰‡‡”ƒŽ‘”
•’‡…‹ƒŽ‘”†‡”ƒ†ˆ‘””‡ƒ•‘•–‘„‡•’‡…‹ϐ‹‡†–Š‡”‡‹Ǥ
(v) Power to admit belated refund application ǣ‘ƒ˜‘‹†‰‡—‹‡Šƒ”†•Š‹’‹ƒ›…ƒ•‡‘”…Žƒ••‘ˆ…ƒ•‡•ǡ–Š‡
‘ƒ”† ƒ› ƒ—–Š‘”‹•‡ ƒ› ‹…‘‡Ǧ–ƒš ƒ—–Š‘”‹–›ǡ ‘– „‡‹‰ ‘‹••‹‘‡” ȋ’’‡ƒŽ•Ȍ –‘ ƒ†‹– „‡Žƒ–‡†
ƒ’’Ž‹…ƒ–‹‘‘”…Žƒ‹ˆ‘”ƒ›‡š‡’–‹‘ǡ†‡†—…–‹‘ǡ”‡ˆ—†‘”ƒ›‘–Š‡””‡Ž‹‡ˆȏ‡…–‹‘ͳͳͻȋʹȌȋ„ȌȐǤ
(vi) Power to decide jurisdiction ǣŠ‡‘ƒ”†‹•‡’‘™‡”‡†–‘†‡…‹†‡Œ—”‹•†‹…–‹‘ƒŽƒ––‡”•‘ˆƒ›‹…‘‡Ǧ–ƒš
ƒ—–Š‘”‹–›ƒ†ƒ••‹‰–‘–Š‡•—…Šˆ—…–‹‘•ƒ•ƒ”‡–‘„‡’‡”ˆ‘”‡†„›–Š‡ȋ‡…–‹‘ͳʹͲȌǤ
(vii) Power to disclose Information: Š‡‘ƒ”†ƒ›†‹•…Ž‘•‡‹ˆ‘”ƒ–‹‘”‡Žƒ–‹‰–‘ƒ›ƒ••‡••‡‡ǡ–‘ƒ›‘ˆϐ‹…‡”ǡ
ƒ—–Š‘”‹–›ǡ‘”„‘†›’‡”ˆ‘”‹‰ƒ›ˆ—…–‹‘•—†‡”ƒ›–ƒšŽƒ™”‡Žƒ–‹‰–‘–Š‡‹’‘•‹–‹‘‘ˆƒ›–ƒšǡ†—–›‘”
…‡•• ‘” †‡ƒŽ‹‰ ‹ ˆ‘”‡‹‰ ‡š…Šƒ‰‡ —†‡” ‘”‡‹‰ š…Šƒ‰‡ ƒƒ‰‡‡– …–ǡ ͳͻͻͻǡ ‹ˆ ‹– …‘•‹†‡”• •—…Š
†‹•…Ž‘•—”‡‹’—„Ž‹…‹–‡”‡•–ǤŠ‡‘ƒ”†ƒ›ƒŽ•‘ƒ—–Š‘”‹•‡ƒ›‘–Š‡”‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›–‘†‹•…Ž‘•‡•—…Š
‹ˆ‘”ƒ–‹‘ȋ‡…–‹‘ͳ͵ͺȌǤŠ‡’”‘˜‹•‹‘‹•‹–‡†‡†–‘ˆƒ…‹Ž‹–ƒ–‡‡š…Šƒ‰‡‘ˆ‹ˆ‘”ƒ–‹‘ƒ„‘—––ƒš‡˜ƒ†‡”•Ǥ
”‹…‹’ƒŽ‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”‘ˆ…‘‡Ǧƒš
Š‡”‹…‹’ƒŽ‹”‡…–‘”Ȃ
‡‡”ƒŽŠƒ•–Š‡ˆ‘ŽŽ‘™‹‰’‘™‡”•ǣ
‘ƒ’’‘‹–ƒ‹…‘‡Ǧ–ƒš
ƒ—–Š‘”‹–›„‡Ž‘™–Š‡”ƒ‘ˆƒ
••‹•–ƒ–‘‹••‹‘‡”
[Section 117
‘ƒ‡ƒ›‡“—‹”› ‘†‡Ž‡‰ƒ–‡–Š‡’‘™‡”•
‘ˆ••‡••‹‰ˆϐ‹…‡”–‘
[Section 135]
‘‹–‘‹••‹‘‡”
[Section 120]

‘”‡“—‹•‹–‹‘ ‘–”ƒ•ˆ‡”…ƒ•‡•
„‘‘•‘ˆ [Section 127]
ƒ……‘—–Ȁƒ••‡–•‡–…Ǥ
[Section 132A]

‡ƒ”…Šƒ†‡‹œ—”‡ “—‹”›‹–‘…‘…‡ƒŽ‡–
[Section 132(1)] [Section 131(1A)]
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͸͹

(a) To appoint an income-tax authority below the rank of an Assistant Commissioner [Section 117] ǣˆ•‘
ƒ—–Š‘”‹•‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”ƒ›ƒ’’‘‹–ƒ‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›
„‡Ž‘™–Š‡”ƒ‘ˆ••‹•–ƒ–‘‹••‹‘‡”Ǥ
ȋ„Ȍ ‘ †‡Ž‡‰ƒ–‡ –Š‡ ’‘™‡”• ‘ˆ ••‡••‹‰ ˆϐ‹…‡” –‘ ‘‹– ‘‹••‹‘‡” ȏ‡…–‹‘ ͳʹͲȐǣ Š‡”‡ ‹”‡…–‘”Ǧ

‡‡”ƒŽ‘”‹”‡…–‘”‹••‘ƒ—–Š‘”‹•‡†„›–Š‡‘ƒ”†ǡŠ‡ƒ›†‡Ž‡‰ƒ–‡–Š‡’‘™‡”•ƒ†ˆ—…–‹‘•‘ˆ–Š‡••‡••‹‰
ˆϐ‹…‡”–‘ ‘‹–‘‹••‹‘‡”Ǥ
(c) To transfer cases [Section 127] ǣŠ‡‹”‡…–‘”Ǧ
‡‡”ƒŽƒ›–”ƒ•ˆ‡”ƒ›…ƒ•‡ˆ”‘‘‡‘”‘”‡••‡••‹‰
ˆϐ‹…‡”••—„‘”†‹ƒ–‡–‘Š‹–‘ƒ›‘–Š‡”••‡••‹‰ˆϐ‹…‡”ƒŽ•‘•—„‘”†‹ƒ–‡–‘Š‹Ǥ
(d) Enquiry into concealment [Section 131(1A)] ǣˆ–Š‡‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”‘”‡’—–›‹”‡…–‘”‘”
••‹•–ƒ–‹”‡…–‘”ȋ™Ǥ‡ǤˆǤͳǤ͸ǤͳͻͺͺȌŠƒ•”‡ƒ•‘–‘•—•’‡…––Šƒ–ƒ›‹…‘‡Šƒ•„‡‡…‘…‡ƒŽ‡†ǡ‘”‹•Ž‹‡Ž›–‘
„‡…‘…‡ƒŽ‡†ǡ„›ƒ›’‡”•‘‘”…Žƒ••‘ˆ’‡”•‘•ǡ™‹–Š‹Š‹•Œ—”‹•†‹…–‹‘ǡŠ‡‹•‡’‘™‡”‡†–‘ƒ‡ƒ›‡“—‹”›
‘”‹˜‡•–‹‰ƒ–‹‘”‡Žƒ–‹‰–Š‡”‡–‘‘–™‹–Š•–ƒ†‹‰–Šƒ–‘’”‘…‡‡†‹‰•™‹–Š”‡•’‡…––‘•—…Š’‡”•‘‘”…Žƒ••‘ˆ
’‡”•‘•ƒ”‡’‡†‹‰„‡ˆ‘”‡Š‹ȏ‡…–‹‘ͳ͵ͳȋͳȌȐǤ
(e) Search and Seizure [Section 132(1)] ǣŠ‡”‡–Š‡‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”‘”Š‹‡ˆ‘‹••‹‘‡”‘”
‘‹••‹‘‡”‹…‘•‡“—‡…‡‘ˆ‹ˆ‘”ƒ–‹‘‹Š‹•’‘••‡••‹‘Šƒ•”‡ƒ•‘–‘„‡Ž‹‡˜‡–Šƒ–ȋƒȌƒ›’‡”•‘–‘
™Š‘‘–‹…‡Šƒ•„‡‡‹••—‡†‹”‡•’‡…–‘ˆ†‹•…‘˜‡”›ƒ†‹•’‡…–‹‘‡–…Ǥȏ—†‡”‡…–‹‘ͳ͵ͳȋͳȌȐ‘”ȋ„Ȍƒ›
’‡”•‘–‘™Š‘‘–‹…‡Šƒ•„‡‡‹••—‡†–‘’”‘†—…‡ƒ……‘—–•‘”†‘…—‡–•ȏ—†‡”‡…–‹‘ͳͶʹȋͳȌȐǡŠƒ•ˆƒ‹Ž‡†
–‘ †‘ •‘ ˆƒ” Š‡ ‹• ‘– Ž‹‡Ž› –‘ ’”‘†—…‡ •—…Š ƒ……‘—–• ‘” †‘…—‡–•ǡ ‘” ƒ› ’‡”•‘ ‹• ‹ ’‘••‡••‹‘ ‘ˆ
—†‹•…Ž‘•‡†‹…‘‡‘”’”‘’‡”–›ǡŠ‡‹•‡’‘™‡”‡†ȏ—†‡”‡…–‹‘ͳ͵ʹȋͳȌȐ–‘ƒ—–Š‘”‹•‡ƒ›‡’—–›‹”‡…–‘”ǡ
‡’—–› ‘‹••‹‘‡”ǡ ••‹•–ƒ– ‹”‡…–‘” ȋ••‹•–ƒ– ‘‹••‹‘‡” ™Ǥ‡ǤˆǤͳǤͶǤͳͻͺͻȌ ‘” ••‡••‹‰ ˆϐ‹…‡” –‘
‡–‡”ƒ†•‡ƒ”…Šƒ›„—‹Ž†‹‰ǡ’Žƒ…‡ǡ˜‡••‡Žǡ˜‡Š‹…Ž‡‘”ƒ‹”…”ƒˆ–ǡ™Š‡”‡Š‡Šƒ•”‡ƒ•‘–‘•—•’‡…–ƒ„‘—––Š‡‹”
ƒ˜ƒ‹Žƒ„‹Ž‹–› ƒ† •‡‹œ‡ ƒ› •—…Š „‘‘• ‘ˆ ƒ……‘—–•ǡ ‘–Š‡” †‘…—‡–•ǡ ‘‡›ǡ „—ŽŽ‹‘ǡ Œ‡™‡ŽŽ‡”› ‘” ‘–Š‡”
˜ƒŽ—ƒ„Ž‡ƒ”–‹…Ž‡‘”–Š‹‰ˆ‘—†ƒ•ƒ”‡•—Ž–‘ˆ•—…Š•‡ƒ”…ŠǤ
 Š‡Dz”‡ƒ•‘–‘„‡Ž‹‡˜‡‘””‡ƒ•‘–‘•—•’‡…–dz–‘ˆ‘”‹••—‹‰™ƒ””ƒ–‘ˆƒ—–Š‘”‹œƒ–‹‘‘ˆ•‡ƒ”…ŠȀ•‡‹œ—”‡•ŠƒŽŽ
‘–„‡†‹•…Ž‘•‡†–‘ƒ›’‡”•‘‘”ƒ—–Š‘”‹–›‘”’’‡ŽŽƒ–‡”‹„—ƒŽǤ‡†‡––‘•‡…–‹‘ͳ͵ʹȋͳȌ™‹ŽŽ–ƒ‡
‡ˆˆ‡…–ˆ”‘’”‹Žͳǡͳͻ͸ʹƒ†ƒ‡†‡––‘•‡…–‹‘ͳ͵ʹȋͳȌƒ†ͳ͵ʹȋͳȌˆ”‘…–‘„‡”ͳǡͳͻ͹ͷǤ
(f) To requisition books of account/Assets etc. [Section 132A] ǣŠ‡”‡ƒ›„‘‘•‘ˆƒ……‘—–‘”†‘…—‡–•
Šƒ˜‡ „‡‡ –ƒ‡ ‹–‘ …—•–‘†› „› ƒ› ‘ˆϐ‹…‡” ‘” ƒ—–Š‘”‹–› —†‡” ƒ› ‘–Š‡” Žƒ™ ȋ‡Ǥ‰Ǥǡ „› ‘‹••‹‘‡” ‘”
—•–‘•ǡƒŽ‡•ƒš‘‹••‹‘‡”‡–…ǤȌƒ†–Š‡‹”‡…–‘”
‡‡”ƒŽ‘”‹”‡…–‘”‘”–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”
‘‹••‹‘‡”ǡ‹…‘•‡“—‡…‡‘ˆ‹ˆ‘”ƒ–‹‘‹Š‹•’‘••‡••‹‘ǡŠƒ•”‡ƒ•‘–‘„‡Ž‹‡˜‡–Šƒ–ȋ‹Ȍƒ›’‡”•‘ǡ
”‡“—‹”‡†–‘’”‘†—…‡•—…Šƒ……‘—–•Ȁ†‘…—‡–•’”‹‘”–‘–Š‡‹”ƒ…“—‹•‹–‹‘—†‡”ƒ›‘–Š‡”Žƒ™ǡŠƒ•ˆƒ‹Ž‡†–‘†‘
•‘ǡ ‘” ȋ‹‹Ȍ •—…Š ƒ……‘—–• ‘” †‘…—‡–• ™‹ŽŽ „‡ —•‡ˆ—Ž ˆ‘” ƒ› ’”‘…‡‡†‹‰ —†‡” ‹…‘‡Ǧ–ƒš Žƒ™ „—– •—…Š
’‡”•‘™‘—Ž†‘–’”‘†—…‡–Š‡‘–Š‡‹””‡–—”„›–Š‡‘ˆϐ‹…‡”‘”ƒ—–Š‘”‹–›—†‡”ƒ›‘–Š‡”Žƒ™ǡ‘”ȋ‹‹‹Ȍƒ›
ƒ••‡–•”‡’”‡•‡–‹…‘‡‘”’”‘’‡”–›™Š‹…ŠŠƒ•‘–„‡‡ǡ‘”™‘—Ž†‘–Šƒ˜‡„‡‡†‹•…Ž‘•‡†„›ƒ›’‡”•‘
ˆ”‘™Š‘•‡’‘••‡••‹‘‘”…‘–”‘Ž•—…Šƒ••‡–•Šƒ˜‡„‡‡–ƒ‡‹–‘…—•–‘†›„›ƒ›‘ˆϐ‹…‡”‘”ƒ—–Š‘”‹–›—†‡”
ƒ› ‘–Š‡” Žƒ™ǡ Š‡ ƒ› ƒ—–Š‘”‹•‡ ƒ› ‡’—–› ‹”‡…–‘”ǡ ‡’—–› ‘‹••‹‘‡”ǡ ••‹•–ƒ– ‹”‡…–‘”ǡ ••‹•–ƒ–
‘‹••‹‘‡”‘”…‘‡Ǧ–ƒšˆϐ‹…‡”–‘”‡“—‹”‡•—…Š‘ˆϐ‹…‡”‘”ƒ—–Š‘”‹–›—†‡”ƒ›‘–Š‡”Žƒ™–‘†‡Ž‹˜‡”•—…Š
„‘‘• ‘ˆ ƒ……‘—– ‘” †‘…—‡–• ‘” •—…Š ƒ••‡–• –‘ –Š‡ ”‡“—‹•‹–‹‘‹‰ ‘ˆϐ‹…‡” —†‡” ‹…‘‡Ǧ–ƒš Žƒ™Ǥ  ƒ
”‡“—‹•‹–‹‘„‡‹‰ƒ†‡ǡ•—…Š‘ˆϐ‹…‡”‘”ƒ—–Š‘”‹–›—†‡”ƒ›‘–Š‡”Žƒ™‹•”‡“—‹”‡†–‘†‡Ž‹˜‡”•—…Š„‘‘•‘ˆ
ƒ……‘—–•‘”†‘…—‡–•‘”ƒ••‡–•–‘–Š‡”‡“—‹•‹–‹‘‹‰‘ˆϐ‹…‡”‡‹–Š‡”ˆ‘”–Š™‹–Š‘”ƒˆ–‡”•—…Š–‹‡™Š‡‹–‹•‘
Ž‘‰‡”‡…‡••ƒ”›–‘”‡–ƒ‹–Š‡‹Š‹•…—•–‘†›Ǥ
 Š‡Dz”‡ƒ•‘–‘„‡Ž‹‡˜‡‘””‡ƒ•‘–‘•—•’‡…–dz–‘ˆ‘”‹••—‹‰™ƒ””ƒ–‘ˆƒ—–Š‘”‹œƒ–‹‘‘ˆ•‡ƒ”…ŠȀ•‡‹œ—”‡•ŠƒŽŽ
‘–„‡†‹•…Ž‘•‡†–‘ƒ›’‡”•‘‘”ƒ—–Š‘”‹–›‘”’’‡ŽŽƒ–‡”‹„—ƒŽǤ‡†‡––‘•‡…–‹‘ͳ͵ʹȋͳȌ™‹ŽŽ–ƒ‡
‡ˆˆ‡…–ˆ”‘’”‹Žͳǡͳͻ͸ʹƒ†ƒ‡†‡––‘•‡…–‹‘ͳ͵ʹȋͳȌƒ†ͳ͵ʹȋͳȌˆ”‘…–‘„‡”ͳǡͳͻ͹ͷǤ
(g) To make any enquiry [Section 135]ǣŠ‡‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”‹•…‘’‡–‡––‘ƒ‡ƒ›‡“—‹”›
—†‡”–Š‹•…–Ǥ
 ͷ͸ͺ Lesson 10 Ȉ EP-TL

Power of Chief Commissioner or Commissioner of Income-Tax

Powers of Chief Commissioner or Commissioner of Income-Tax

‘ƒ’’‘‹–ƒ‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›„‡Ž‘™–Š‡”ƒ‘ˆ••‹•–ƒ–‘‹••‹‘‡”[Section 117]

‘†‡Ž‡‰ƒ–‡–Š‡’‘™‡”•‘ˆ••‡••‹‰ˆϐ‹…‡”–‘‡’—–›‘‹••‹‘‡”[Section 120]

‘–”ƒ•ˆ‡”…ƒ•‡[Section 127]

‘™‡””‡‰ƒ”†‹‰†‹•…‘˜‡”›ǡ’”‘†—…–‹‘‘ˆ‡˜‹†‡…‡‡–…Ǥ[Section 131]

‡ƒ”…Šƒ†•‡‹œ—”‡[Section 132]

‘”‡“—‹•‹–‹‘„‘‘•‘ˆƒ……‘—–•‡–…Ǥ[Section 132A]

‘™‡”‘ˆ•—”˜‡›[Section 133A]

‘ƒ‡ƒ›‡“—‹”›[Section 135]

‹•…Ž‘•—”‡‘ˆ‹ˆ‘”ƒ–‹‘”‡•’‡…–‹‰ƒ••‡••‡‡•[Section 138]

‘•ƒ…–‹‘”‡‘’‡‹‰‘ˆ–Š‡ƒ••‡••‡–ƒˆ–‡”–Š‡‡š’‹”›‘ˆˆ‘—”›‡ƒ”•[Section 151(2)]

‘ƒ’’”‘˜‡™‹–ŠŠ‘Ž†‹‰‘ˆ”‡ˆ—†‹…‡”–ƒ‹…ƒ•‡•[Section 241]

‡–Ǧ‘ˆˆ‘ˆ”‡ˆ—†ƒ‰ƒ‹•–ƒ””‡ƒ”•‘ˆ–ƒš[Section 245]

‘†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘’”‡ˆ‡”ƒ’’‡ƒŽ–‘–Š‡”‹„—ƒŽƒ‰ƒ‹•–ǤǤǤǯ•‘”†‡”[Section 253(2)]

‘”‡˜‹•‡ƒ›‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”™Š‹…Š‹•’”‡Œ—†‹…‹ƒŽ–‘”‡˜‡—‡[Section 263]

‡˜‹•‹‘ ‘ˆ ƒ› ‘”†‡” ’ƒ••‡† „› ƒ •—„‘”†‹ƒ–‡ ƒ—–Š‘”‹–› ‘ ƒ’’Ž‹…ƒ–‹‘ „› –Š‡ ƒ••‡••‡‡ ‘” •—‘
‘–—[Section 264]

Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‘ˆ…‘‡–ƒšŠƒ•–Š‡ˆ‘ŽŽ‘™‹‰’‘™‡”•ǣ
(i) To appoint an income-tax authority below the rank of Assistant Commissioner [Section 117] ǣˆ•‘
ƒ—–Š‘”‹•‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡƒŠ‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›ƒ’’‘‹–ƒ‹…‘‡Ǧ–ƒš
ƒ—–Š‘”‹–›„‡Ž‘™–Š‡”ƒ‘ˆ••‹•–ƒ–‘‹••‹‘‡”Ǥ
ȋ‹‹Ȍ ‘ †‡Ž‡‰ƒ–‡ –Š‡ ’‘™‡”• ‘ˆ ••‡••‹‰ ˆϐ‹…‡” –‘ ‡’—–› ‘‹••‹‘‡” ȏ‡…–‹‘ ͳʹͲȐ ǣ Š‡”‡ Š‹‡ˆ
‘‹••‹‘‡”‘”‘‹••‹‘‡”‹••‘ƒ—–Š‘”‹•‡†„›–Š‡‘ƒ”†ǡŠ‡ƒ›†‡Ž‡‰ƒ–‡–Š‡’‘™‡”•ƒ†ˆ—…–‹‘•‘ˆ
–Š‡••‡••‹‰ˆϐ‹…‡”–‘ ‘‹–‹”‡…–‘”‘” ‘‹–‘‹••‹‘‡”Ǥ
(iii) To transfer case [Section 127] ǣŠ‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹•‡’‘™‡”‡†–‘–”ƒ•ˆ‡”ƒ›
…ƒ•‡ˆ”‘ƒ›••‡••‹‰ˆϐ‹…‡”•–‘ƒ›‘–Š‡”••‡••‹‰ˆϐ‹…‡”‘”••‡••‹‰ˆϐ‹…‡”•Ǥ
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͸ͻ

(iv) Power regarding discovery, production of evidence etc. [Section 131] ǣ Š‡ Š‹‡ˆ ‘‹••‹‘‡” ‘”
‘‹••‹‘‡”Šƒ•–Š‡•ƒ‡’‘™‡”•ƒ•ƒ”‡˜‡•–‡†‹ƒ‘—”–—†‡”–Š‡‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡‹”‡•’‡…–‘ˆ
†‹•…‘˜‡”›ƒ†‹•’‡…–‹‘ǡ…‘’‡ŽŽ‹‰’”‘†—…–‹‘‘ˆ„‘‘•‘ˆƒ……‘—–•ƒ†‘–Š‡”†‘…—‡–•ȋ”‡Žƒ–‹‰–‘ƒ›
’‡”‹‘†Ȍǡ ‹••—‹‰ …‘‹••‹‘• ‡ˆ‘”…‹‰ –Š‡ ƒ––‡†ƒ…‡ ‘ˆ ƒ› ’‡”•‘ǡ ‹…Ž—†‹‰ ƒ› ‘ˆϐ‹…‡” ‘ˆ ƒ „ƒ‹‰
…‘’ƒ›ƒ†‡šƒ‹‹‰Š‹‘‘ƒ–ŠǤ
 Š‡‘‹••‹‘‡”ƒ›‹’‘—†‘””‡–ƒ‹ƒ›„‘‘•‘ˆƒ……‘—–•‘”‘–Š‡”†‘…—‡–•’”‘†—…‡†„‡ˆ‘”‡Š‹
ˆ‘”•—…Š–‹‡ƒ•Š‡–Š‹•ϐ‹–ȏ‡…–‹‘ͳ͵ͳȋ͵ȌȐǤŠ‡”‡•—…Š’‘™‡”‹•‡š‡”…‹•‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”ǡŠ‡Šƒ•
–‘”‡…‘”†”‡ƒ•‘•„‡ˆ‘”‡‹’‘—†‹‰–Š‡„‘‘•‘ˆƒ……‘—–•‘”†‘…—‡–•ǤŠ‡••‡••‹‰ˆϐ‹…‡”‘”••‹•–ƒ–
‘‹••‹‘‡”…ƒ‘–”‡–ƒ‹–Š‡„‘‘•‘ˆƒ……‘—–•Ȁ†‘…—‡–•ˆ‘”ƒ’‡”‹‘†‡š…‡‡†‹‰ͳͷ†ƒ›•™‹–Š‘—–’”‹‘”
ƒ’’”‘˜ƒŽ‘ˆ–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‘‹••‹‘‡”ȏ‡…–‹‘ͳ͵ͳȋ͵ȌȐǤ
(v) Search and seizure [Section 132] ǣ ‹‡ ‹”‡…–‘”Ǧ
‡‡”ƒŽ ‘” ‹”‡…–‘”ǡ –Š‡ Š‹‡ˆ ‘‹••‹‘‡” ‘”
‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšŠƒ•ƒŽ•‘‰‘––Š‡’‘™‡”•‘ˆ•‡ƒ”…Šƒ†•‡‹œ—”‡Ǥ
(vi) To requisition books of accounts etc. [Section 132A] ǣ‹‡‹”‡…–‘”Ǧ
‡‡”ƒŽ‘”‹”‡…–‘”‘ˆ…‘‡Ǧ–ƒšǡ
–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹•ƒŽ•‘˜‡•–‡†™‹–Š–Š‡’‘™‡”–‘”‡“—‹•‹–‹‘„‘‘•‘ˆƒ……‘—–•Ǥ
(vii) Power of survey [Section 133A] ǣ…‘‡Ǧ–ƒšƒ—–Š‘”‹–›ƒ›‡–‡”ǡƒˆ–‡”•—”‹•‡ƒ†„‡ˆ‘”‡•—•‡–ǡƒ›
‘ˆϐ‹…‡ǡ ‘” ƒ› ‘–Š‡” ’Žƒ…‡ ȋ™Š‡”‡ „—•‹‡•• ‘” ’”‘ˆ‡••‹‘ ‹• …ƒ””‹‡† ‘ ‘” ™Š‡”‡ ƒ› „‘‘• ‘ˆ ƒ……‘—–•Ȁ
†‘…—‡–•ǡ…ƒ•Šǡ•–‘…•‘”‘–Š‡”˜ƒŽ—ƒ„Ž‡ƒ”–‹…Ž‡•”‡Žƒ–‹‰–‘„—•‹‡••ƒ”‡‡’–Ȍǡˆ‘”–Š‡’—”’‘•‡‘ˆ˜‡”‹ˆ›‹‰
™Š‡–Š‡”–ƒšŠƒ•„‡‡†‡†—…–‡†‘”…‘ŽŽ‡…–‡†ƒ–•‘—”…‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•Ǥ”‘˜‹†‡†
–Šƒ–•—…Š’Žƒ…‡‹•™‹–Š‹–Š‡Ž‹‹–•‘ˆ–Š‡ƒ”‡ƒƒ••‹‰‡†–‘Š‹ǡ‘”ƒ›’Žƒ…‡‹”‡•’‡…–‘ˆ™Š‹…ŠŠ‡‹•ƒ—–Š‘”‹•‡†
ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘„›•—…Š‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›™Š‘‹•ƒ••‹‰‡†–Š‡ƒ”‡ƒ™‹–Š‹™Š‹…Š•—…Š
’Žƒ…‡‹••‹–—ƒ–‡†Ǥ
 ‡ƒ›ƒŽ•‘”‡“—‹”‡–Š‡†‡†—…–‘”‘”–Š‡…‘ŽŽ‡…–‘”‘”ƒ›‘–Š‡”’‡”•‘™Š‘ƒ›ƒ––Šƒ––‹‡ƒ†’Žƒ…‡„‡ƒ––‡†‹‰
‹ƒ›ƒ‡”–‘•—…Š™‘”–‘ƒˆˆ‘”†Š‹–Š‡‡…‡••ƒ”›ˆƒ…‹Ž‹–›–‘‹•’‡…–•—…Š„‘‘•‘ˆƒ……‘—–‘”‘–Š‡”†‘…—‡–•
ƒ˜ƒ‹Žƒ„Ž‡ƒ–•—…Š’Žƒ…‡ǡƒ†–‘ˆ—”‹•Š•—…Š‹ˆ‘”ƒ–‹‘ƒ•Š‡ƒ›”‡“—‹”‡‹”‡Žƒ–‹‘–‘•—…Šƒ––‡”Ǥ
 Š‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›ƒ…–‹‰—†‡”–Š‹••‡…–‹‘ƒ›ƒŽ•‘’Žƒ…‡ƒ”•‘ˆ‹†‡–‹ϐ‹…ƒ–‹‘ǡ‹’‘—†‘””‡–ƒ‹
‹Š‹•…—•–‘†›„‘‘•‘ˆƒ……‘—–‘”‘–Š‡”†‘…—‡–•‹•’‡…–‡†„›Š‹ǡƒ‡‹˜‡–‘”›‘ˆƒ”–‹…Ž‡•˜‡”‹ϐ‹‡†‘”
”‡…‘”†–Š‡•–ƒ–‡‡–‘ˆƒ›’‡”•‘Ǥ”‘˜‹†‡†–Šƒ–•—…Š‹’‘—†‹‰•ŠƒŽŽ„‡†‘‡‘Ž›ƒˆ–‡””‡…‘”†‹‰–Š‡
”‡ƒ•‘• ˆ‘” †‘‹‰ •‘ ƒ† –Š‡ ’‡”‹‘† ‘ˆ ”‡–‡–‹‘ ȋ™‹–Š‘—– ‘„–ƒ‹‹‰ –Š‡ ƒ’’”‘˜ƒŽ ‘ˆ –Š‡ ”‹…‹’ƒŽ Š‹‡ˆ
‘‹••‹‘‡”‘”–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”–Š‡”‹…‹’ƒŽ‹”‡…–‘”
‡‡”ƒŽ‘”–Š‡‹”‡…–‘”
‡‡”ƒŽ‘”–Š‡
”‹…‹’ƒŽ‘‹••‹‘‡”‘”–Š‡‘‹••‹‘‡”‘”–Š‡”‹…‹’ƒŽ‹”‡…–‘”‘”–Š‡‹”‡…–‘”–Š‡”‡‘ˆǡƒ•–Š‡…ƒ•‡
ƒ›„‡Ȍ•ŠƒŽŽ‘–‡š…‡‡†ƒ’‡”‹‘†‘ˆϐ‹ˆ–‡‡†ƒ›•ȋ‡š…Ž—•‹˜‡‘ˆŠ‘Ž‹†ƒ›•ȌǤ
 Š‡”‡ƒƒ••‡••‡‡‹…—”•ƒ‘•–‡–ƒ–‹‘—•‡š’‡†‹–—”‡‘ƒ›ˆ—…–‹‘ǡ…‡”‡‘›ǡ–Š‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›
‹•‡’‘™‡”‡†–‘…‘ŽŽ‡…–‹ˆ‘”ƒ–‹‘ƒ„‘—–•—…Š‡š’‡†‹–—”‡ˆ”‘–Š‡ƒ••‡••‡‡‘”ƒ›‘–Š‡”’‡”•‘™Š‘‹•
Ž‹‡Ž›–‘’‘••‡••‹ˆ‘”ƒ–‹‘‹–Š‹•…‘‡…–‹‘ƒ†ƒ›”‡…‘”†–Š‡‹”•–ƒ–‡‡–™Š‹…Šƒ›„‡—•‡†–Š‡”‡ƒˆ–‡”
ƒ•ƒ‡˜‹†‡…‡ǤŠ‹•ƒ›„‡†‘‡ƒ––‹‡•—…Šˆ—…–‹‘‘”…‡”‡‘›‹•‘˜‡”Ǥ
 Ǯ›Žƒ…‡ǯ–‘‹…Ž—†‡ƒ›’Žƒ…‡ƒ–™Š‹…Šƒƒ…–‹˜‹–›ˆ‘”…Šƒ”‹–ƒ„Ž‡’—”’‘•‡‹•…ƒ””‹‡†‘Ǥ
(viii) To make any enquiry [Section 135] ǣŠ‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹•…‘’‡–‡––‘ƒ‡ƒ›
‡“—‹”›—†‡”–Š‹•…–Ǥ
(ix) Disclosure of information respecting assessees [Section 138] ǣŠ‡”‡ƒ’‡”•‘ƒ‡•ƒƒ’’Ž‹…ƒ–‹‘–‘
–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”‹–Š‡’”‡•…”‹„‡†ˆ‘”ˆ‘”ƒ›‹ˆ‘”ƒ–‹‘”‡Žƒ–‹‰–‘ƒ›ƒ••‡••‡‡
‹”‡•’‡…–‘ˆƒ›ƒ••‡••‡–ǡŠ‡ƒ›ˆ—”‹•Š–Š‡‹ˆ‘”ƒ–‹‘ƒ•‡†ˆ‘”‹”‡•’‡…–‘ˆ–Šƒ–ƒ••‡••‡–‹ˆŠ‡
•ƒ–‹•ϐ‹‡†–Šƒ–•—…Š†‹•…Ž‘•—”‡‹•‹’—„Ž‹…‹–‡”‡•–Ǥ
(x) To sanction reopening of the assessment after the expiry of four years [Section 151(2)] ǣŠ‡ƒ••‡••‡–
‘ˆƒ‹…‘‡™Š‹…ŠŠƒ•‡•…ƒ’‡†ƒ••‡••‡–…ƒ„‡”‡‘’‡‡†ƒˆ–‡”–Š‡‡š’‹”›‘ˆˆ‘—”›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ
–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”‘Ž›‹ˆ–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”Šƒ••ƒ…–‹‘‡†•—…Š”‡‘’‡‹‰Ǥ
(xi) To approve withholding of refund in certain cases [Section 241] ǣ Š‡”‡ ƒ› ’”‘…‡‡†‹‰ ‹• ’‡†‹‰
ƒ‰ƒ‹•––Š‡ƒ••‡••‡‡•ƒ†–Š‡••‡••‹‰ˆϐ‹…‡”‹•‘ˆ–Š‡‘’‹‹‘–Šƒ––Š‡‰”ƒ–‘ˆ–Š‡”‡ˆ—†ƒ›ƒ†˜‡”•‡Ž›
ƒˆˆ‡…––Š‡”‡˜‡—‡ǡ–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›ƒ—–Š‘”‹•‡–Š‡••‡••‹‰ˆϐ‹…‡”–‘™‹–ŠŠ‘Ž†
–Š‡”‡ˆ—†–‹ŽŽ•—…Š–‹‡ƒ•–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›†‡–‡”‹‡Ǥ
 ͷ͹Ͳ Lesson 10 Ȉ EP-TL

(xii) Set-off of refund against arrears of tax [Section 245]ǣ Š‡ Š‹‡ˆ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” ‹•
‡’‘™‡”‡†–‘•‡–‘ˆˆ–Š‡ƒ‘—–‘ˆ”‡ˆ—†‘”ƒ›’ƒ”––Š‡”‡‘ˆ†—‡–‘ƒ›’‡”•‘ƒ‰ƒ‹•––Š‡ƒ””‡ƒ”•‘ˆ–Š‡
–ƒš†—‡ˆ”‘•—…Š’‡”•‘Ǥ›‹–‹ƒ–‹‘‹™”‹–‹‰–‘–Š‹•‡ˆˆ‡…–•Š‘—Ž†„‡‰‹˜‡–‘•—…Š’‡”•‘Ǥ
ȋš‹‹‹Ȍ ‘†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘’”‡ˆ‡”ƒ’’‡ƒŽ–‘–Š‡”‹„—ƒŽƒ‰ƒ‹•–ǤǤǤǯ•‘”†‡”ȏ‡…–‹‘ʹͷ͵ȋʹȌȐ
ǣŠ‡‘‹••‹‘‡”ƒ›ǡ‹ˆŠ‡‘„Œ‡…–•–‘ƒ›‘”†‡”’ƒ••‡†„›ƒ‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍǡ†‹”‡…––Š‡••‡••‹‰
ˆϐ‹…‡”–‘ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ‰ƒ‹•––Š‡‘”†‡”Ǥ
ȋš‹˜Ȍ ‘”‡˜‹•‡ƒ›‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”™Š‹…Š‹•’”‡Œ—†‹…‹ƒŽ–‘”‡˜‡—‡ȏ‡…–‹‘ʹ͸͵ȐǣŠ‡
‘‹••‹‘‡”ƒ›”‡˜‹•‡ƒ›‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”™Š‹…Š‹•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–‘”
”‡˜‡—‡Ǥ
(xv) Revision of any order passed by a subordinate authority on application by the assessee or suo motu
[Section 264]ǣŠ‡‘‹••‹‘‡”ƒ›”‡˜‹•‡‡‹–Š‡”‘Š‹•‘™‘–‹‘‘”‘ƒƒ’’Ž‹…ƒ–‹‘ƒ†‡„›–Š‡
ƒ••‡••‡‡™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡ˆ‘”•—…Š”‡˜‹•‹‘ǡƒ›‘”†‡”’ƒ••‡†„›ƒƒ—–Š‘”‹–›•—„‘”†‹ƒ–‡–‘Š‹Ǥ
‡ƒ›’ƒ•••—…Š‘”†‡”–Š‡”‡‘ǡ‘–„‡‹‰ƒ‘”†‡”’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡ƒ•Š‡ƒ›–Š‹ϐ‹–Ǥ
  ǧȍȎ

Š‡‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšȋ’’‡ƒŽ•Ȍ‹•ƒƒ’’‡ŽŽƒ–‡ƒ—–Š‘”‹–›Ǥ–‹•˜‡•–‡†™‹–Š–Š‡Œ—†‹…‹ƒŽ’‘™‡”•ǣ

1. Power regarding discovery, production of evidence [Section 131]ǣ ‹‡ Š‹‡ˆ ‘‹••‹‘‡” ‘”
‘‹••‹‘‡”ǡ –Š‡ ’‘™‡” ”‡‰ƒ”†‹‰ †‹•…‘˜‡”›ǡ ’”‘†—…–‹‘ ‘ˆ ‡˜‹†‡…‡ ‡–…Ǥǡ …ƒ ƒŽ•‘ „‡ ‡š‡”…‹•‡† „› –Š‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤ
2. Power to call for information [Section 133] ǣ Š‡ ‘‹••‹‘‡” ‘ˆ …‘‡Ǧ–ƒš ȋ’’‡ƒŽ•Ȍ ƒ›ǡ ˆ‘” –Š‡
’—”’‘•‡•‘ˆ–Š‹•…–ǣ
ȋƒȌ ”‡“—‹”‡ƒ›ϐ‹”–‘ˆ—”‹•ŠŠ‹™‹–Šƒ”‡–—”‘ˆ–Š‡ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ–Š‡’ƒ”–‡”•‘ˆ–Š‡ϐ‹”
ƒ†–Š‡‹””‡•’‡…–‹˜‡•Šƒ”‡•Ǣ
ȋ„Ȍ ”‡“—‹”‡ƒ›‹†—†‹˜‹†‡† ƒ‹Ž›–‘ˆ—”‹•ŠŠ‹™‹–Šƒ”‡–—”‘ˆ–Š‡ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ–Š‡
ƒƒ‰‡”ƒ†–Š‡‡„‡”•‘ˆ–Š‡ˆƒ‹Ž›Ǣ
ȋ…Ȍ ”‡“—‹”‡ƒ›’‡”•‘™Š‘Š‡Šƒ•”‡ƒ•‘–‘„‡Ž‹‡˜‡–‘„‡ƒ–”—•–‡‡ǡ‰—ƒ”†‹ƒ‘”ƒ‰‡–ǡ–‘ˆ—”‹•ŠŠ‹
™‹–Šƒ”‡–—”‘ˆ–Š‡ƒ‡•‘ˆ–Š‡’‡”•‘•ˆ‘”‘”‘ˆ™Š‘Š‡‹•–”—•–‡‡ǡ‰—ƒ”†‹ƒ‘”ƒ‰‡–ǡƒ†‘ˆ–Š‡‹”
ƒ††”‡••‡•Ǣ
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͹ͳ

ȋ†Ȍ ”‡“—‹”‡ƒ›ƒ••‡••‡‡–‘ˆ—”‹•Šƒ•–ƒ–‡‡–‘ˆ–Š‡ƒ‡•ƒ†ƒ††”‡••‡•‘ˆƒŽŽ’‡”•‘•–‘™Š‘Š‡Šƒ•
’ƒ‹† ‹ ƒ› ’”‡˜‹‘—• ›‡ƒ” ”‡–ǡ ‹–‡”‡•–ǡ …‘‹••‹‘ǡ ”‘›ƒŽ–› ‘” „”‘‡”ƒ‰‡ǡ ‘” ƒ› ƒ—‹–› –‘‰‡–Š‡”
™‹–Š’ƒ”–‹…—Žƒ”•‘ˆ•—…Š’ƒ›‡–•ƒ†‡Ǣ
ȋ‡Ȍ ”‡“—‹”‡ƒ›†‡ƒŽ‡”ǡ„”‘‡”‘”ƒ‰‡–‘”ƒ›’‡”•‘…‘…‡”‡†‹–Š‡ƒƒ‰‡‡–‘ˆƒ•–‘…‘”‘‘†‹–›
š…Šƒ‰‡–‘ˆ—”‹•Šƒ•–ƒ–‡‡–‘ˆ–Š‡ƒ‡•ƒ†ƒ††”‡••‡•‘ˆƒŽŽ’‡”•‘•–‘™Š‘Š‡‘”–Š‡š…Šƒ‰‡
Šƒ•’ƒ‹†ƒ›•—‹…‘‡…–‹‘™‹–Š–Š‡–”ƒ•ˆ‡”ǡ™Š‡–Š‡”„›™ƒ›‘ˆ•ƒŽ‡ǡ‡š…Šƒ‰‡‘”‘–Š‡”™‹•‡ǡ‘ˆ
ƒ••‡–•ǡ‘”‘™Š‘•‡„‡ŠƒŽˆ‘”ˆ”‘™Š‘Š‡‘”–Š‡š…Šƒ‰‡Šƒ•”‡…‡‹˜‡†ƒ›•—…Š•—ǡ–‘‰‡–Š‡”™‹–Š
’ƒ”–‹…—Žƒ”•‘ˆƒŽŽ•—…Š’ƒ›‡–•ƒ†”‡…‡‹’–•Ǣ
ȋˆȌ ”‡“—‹”‡ ƒ› ’‡”•‘ǡ ‹…Ž—†‹‰ ƒ „ƒ‹‰ …‘’ƒ› ‘” ƒ› ‘ˆϐ‹…‡” –Š‡”‡‘ˆǡ –‘ ˆ—”‹•Š ‹ˆ‘”ƒ–‹‘ ‹
”‡Žƒ–‹‘–‘•—…Š’‘‹–‘”ƒ–‡”‘”–‘ˆ—”‹•Š•–ƒ–‡‡–•‘ˆƒ……‘—–•ƒ†ƒˆˆƒ‹”•˜‡”‹ϐ‹‡†‹–Š‡•’‡…‹ϐ‹‡†
ƒ‡”ǡ‰‹˜‹‰•—…Š‹ˆ‘”ƒ–‹‘ƒ•ƒ›„‡”‡“—‹”‡†„›Š‹Ǥ
Amendment to First Proviso to Section 133 ǣ™Ǥ‡ǤˆǤ’”‹ŽͳǡʹͲͳ͹’‘™‡”‹”‡•’‡…–‘ˆ‹“—‹”›‘”’”‘…‡‡†‹‰
—†‡”–Š‡…–ǡƒ›ƒŽ•‘„‡‡š‡”…‹•‡†„›–Š‡ ‘‹–‹”‡…–‘”ǡ‡’—–›‹”‡…–‘”ƒ†••‹•–ƒ–‹”‡…–‘”Ǥ
Amendment to Second Proviso to Section 133 ǣ™Ǥ‡ǤˆǤ’”‹ŽͳǡʹͲͳ͹ ‘‹–‹”‡…–‘”ǡ‡’—–›‹”‡…–‘”ƒ›
‡š‡”…‹•‡–Š‡’‘™‡”•‹”‡•’‡…–‘ˆ•—…Š‹“—‹”›ǡ™‹–Š‘—–•‡‡‹‰’”‹‘”ƒ’’”‘˜ƒŽ‘ˆŠ‹‰Š‡”ƒ—–Š‘”‹–‹‡•Ǥ
Amendment to Section 133C ǣ‡…–‹‘ͳ͵͵Šƒ•„‡‡ƒ‡†‡†–‘‡’‘™‡”•–‘ƒ‡ƒ•…Š‡‡ˆ‘”
…‡–”ƒŽ‹•‡† ‹••—ƒ…‡ ‘ˆ ‘–‹…‡ …ƒŽŽ‹‰ ˆ‘” ‹ˆ‘”ƒ–‹‘ ƒ† †‘…—‡–• ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ˜‡”‹ϐ‹…ƒ–‹‘ ‘ˆ
‹ˆ‘”ƒ–‹‘ ‹ ‹–• ’‘••‡••‹‘ǡ ’”‘…‡••‹‰ ‘ˆ •—…Š †‘…—‡–• ƒ† ƒ‹‰ ‘—–…‘‡ ‘ˆ –Š‡”‡‘ˆ ƒ˜ƒ‹Žƒ„Ž‡ –‘
ƒ••‡••‹‰‘ˆϐ‹…‡”ˆ‘”‡…‡••ƒ”›ƒ…–‹‘ǡ‹ˆƒ›Ǥ
3. Power to inspect register of companies [Section 134] ǣŠ‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ›‹•’‡…–ƒ†ǡ‹ˆ
‡…‡••ƒ”›ǡ –ƒ‡ …‘’‹‡• ‘” …ƒ—•‡ …‘’‹‡• –‘ „‡ –ƒ‡ǡ ‘ˆ ƒ› ”‡‰‹•–‡” ‘ˆ ‡„‡”•ǡ †‡„‡–—”‡ Š‘Ž†‡”• ‘”
‘”–‰ƒ‰‡‡•‘ˆƒ›…‘’ƒ›‘”‘ˆƒ›‡–”›‹•—…Š”‡‰‹•–‡”ǤŠ‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ›ƒŽ•‘ƒ—–Š‘”‹œ‡
ȋ‹™”‹–‹‰Ȍƒ›’‡”•‘•—„‘”†‹ƒ–‡–‘Š‹–‘‹•’‡…–ƒ†ǡ‹ˆ‡…‡••ƒ”›ǡ–ƒ‡…‘’‹‡•‘””‡‰‹•–‡”•ƒ•ƒˆ‘”‡•ƒ‹†Ǥ
4. Set-off of refund against arrears of tax [Section 245] ǣŠ‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‹•‡’‘™‡”‡†–‘•‡–
‘ˆˆ –Š‡ ƒ‘—– ‘ˆ ”‡ˆ—† ‘” ƒ› ’ƒ”– –Š‡”‡‘ˆ †—‡ –‘ ƒ› ’‡”•‘ ƒ‰ƒ‹•– –Š‡ ƒ””‡ƒ”• ‘ˆ –ƒš †—‡ ˆ”‘ •—…Š
’‡”•‘Ǥ–‹ƒ–‹‘‹™”‹–‹‰–‘–Š‹•‡ˆˆ‡…–•Š‘—Ž†„‡‰‹˜‡–‘•—…Š’‡”•‘Ǥ
5. Disposal of appeal [Section 251] ǣ†‹•’‘•‹‰‘ˆƒƒ’’‡ƒŽǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌŠƒ•–Š‡ˆ‘ŽŽ‘™‹‰
’‘™‡”•ǣ
ȋƒȌ ‹ƒƒ’’‡ƒŽƒ‰ƒ‹•–ƒ‘”†‡”‘ˆƒ••‡••‡–Š‡ƒ›…‘ϐ‹”ǡ”‡†—…‡ǡ‡Šƒ…‡‘”ƒ—Ž–Š‡ƒ••‡••‡–ǡ
‘”Š‡ƒ›•‡–ƒ•‹†‡–Š‡ƒ••‡••‡–ƒ†”‡ˆ‡”„ƒ…–‘–Š‡••‡••‹‰ˆϐ‹…‡”ˆ‘”ƒ‹‰ƒˆ”‡•Šƒ••‡••‡–
‹ƒ……‘”†ƒ…‡™‹–Š•—…Š†‹”‡…–‹‘•ƒ•‰‹˜‡„›Š‹Ǥ
ȋ„Ȍ ‹ƒƒ’’‡ƒŽƒ‰ƒ‹•–ƒ‘”†‡”‹’‘•‹‰ƒ’‡ƒŽ–›ǡŠ‡ƒ›…‘ϐ‹”‘”…ƒ…‡Ž•—…Š‘”†‡”‘”˜ƒ”›‹–•‘ƒ•
‡‹–Š‡”–‘‡Šƒ…‡‘””‡†—…‡–Š‡’‡ƒŽ–›Ǥ
ȋ…Ȍ ‹ƒ›‘–Š‡”…ƒ•‡ǡŠ‡ƒ›’ƒ•••—…Š‘”†‡”‹ƒ’’‡ƒŽ•ƒ•Š‡–Š‹•ϐ‹–Ǥ
 –ƒ›„‡‘–‡†–Šƒ–ƒƒ••‡••‡–‘”ƒ’‡ƒŽ–›…ƒ‘–„‡‡Šƒ…‡†‘”–Š‡ƒ‘—–‘ˆ”‡ˆ—†…ƒ‘–„‡”‡†—…‡†
—Ž‡••–Š‡ƒ’’‡ŽŽƒ–Šƒ†ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ•Š‘™‹‰…ƒ—•‡ƒ‰ƒ‹•–•—…Š‡Šƒ…‡‡–‘””‡†—…–‹‘Ǥ
6. Imposition of penalty [Section 271]ǣŠ‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ›‹’‘•‡’‡ƒŽ–›ˆ‘”‘–’”‘†—…‹‰
–Š‡„‘‘•‘ˆƒ……‘—–•‘”‘–Š‡”†‘…—‡–•ȏ‡…–‹‘ͳͶʹȋͳȌȐ‘”ˆ‘”…‘…‡ƒŽ‡–‘ˆ‹…‘‡ȏ‡…–‹‘ʹ͹ͳȐǤ
ASSESSMENT
˜‡”›ƒ••‡••‡‡Šƒ•–‘•—„‹–Š‹•‹…‘‡†‡–ƒ‹Ž•–‘‹…‘‡–ƒš†‡’ƒ”–‡–„›ϐ‹Ž‹‰Š‹•‹…‘‡–ƒš”‡–—”Ǥ…‡
–Š‡”‡–—”‘ˆ‹…‘‡‹•ϐ‹Ž‡†„›ƒƒ••‡••‡‡ǡ–Š‡˜‡”›‡š–•–‡’‹•–Š‡’”‘…‡••‹‰‘ˆ–Š‡‹…‘‡–ƒš”‡–—”„›–Š‡
‹…‘‡ –ƒš †‡’ƒ”–‡–Ǥ Š‹Ž‡ ’”‘…‡••‹‰ǡ †‡’ƒ”–‡– ˜‡”‹ϐ‹‡• ƒ† ‡šƒ‹‡• –Š‡ …‘””‡…–‡•• ‘ˆ –Š‡ ‹…‘‡
†‡–ƒ‹Ž•’”‘˜‹†‡†„›ƒ••‡••‡‡ǤŠ‹•’”‘…‡••‘ˆ‡šƒ‹‹‰–Š‡‹…‘‡–ƒš”‡–—”„›–Š‡…‘‡ƒš‡’ƒ”–‡–‹•
…ƒŽŽ‡†Dz••‡••‡–dzƒ†‹…Ž—†‡•”‡Ǧƒ••‡••‡–ƒ†„‡•–Œ—†‰‡–ƒ••‡••‡–—†‡”•‡…–‹‘ͳͶͶǤ

Self Assessment [Section 140A]

‡Žˆƒ••‡••‡–‹•–Š‡ϐ‹”•–•–‡’‹–Š‡’”‘…‡••‘ˆƒ••‡••‡–•Ǥ‡Žˆ••‡••‡–‹••‹’Ž›ƒ’”‘…‡••™Š‡”‡ƒ’‡”•‘
Š‹•‡Žˆƒ••‡••‡•Š‹•–ƒšŽ‹ƒ„‹Ž‹–›‘–Š‡‹…‘‡‡ƒ”‡††—”‹‰–Š‡’ƒ”–‹…—Žƒ”’”‡˜‹‘—•›‡ƒ”ƒ†•—„‹–•…‘‡ƒš
 ͷ͹ʹ Lesson 10 Ȉ EP-TL

‡–—”–‘–Š‡†‡’ƒ”–‡–Ǥ˜‡”›’‡”•‘ǡ„‡ˆ‘”‡ˆ—”‹•Š‹‰”‡–—”—†‡”•‡…–‹‘•ͳ͵ͻȋ”‡–—”‘ˆ‹…‘‡ȌǡͳͶʹȋͳȌǡ
ͳͶͺȋ‹••—‡‘ˆ‘–‹…‡™Š‡”‡‹…‘‡Šƒ•‡•…ƒ’‡†ƒ••‡••‡–Ȍƒ†ͳͷ͵ȋ••‡••‡–‹…ƒ•‡‘ˆ•‡ƒ”…Š‘””‡“—‹•‹–‹‘Ȍ
•ŠƒŽŽ ƒ‡ •‡Žˆ ƒ••‡••‡– ‘ˆ Š‹• ‹…‘‡ ƒ† ’ƒ› –Š‡ –ƒšǡ ‹ˆ †—‡ ‘ –Š‡ „ƒ•‹• ‘ˆ •—…Š ƒ••‡••‡–Ǥ Š‡ –‘–ƒŽ –ƒš
’ƒ›ƒ„Ž‡‹•…ƒŽ…—Žƒ–‡†‘–Š‡–‘–ƒŽ‹…‘‡‘ˆ–Š‡ƒ••‡••‡‡ƒˆ–‡”…‘•‹†‡”‹‰–Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–ǣ
ȋ‹Ȍ –Š‡ƒ‘—–‘ˆ–ƒšƒŽ”‡ƒ†›’ƒ‹†—†‡”ƒ›’”‘˜‹•‹‘‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳǢ
ȋ‹‹Ȍ ƒ›–ƒš†‡†—…–‡†‘”…‘ŽŽ‡…–‡†ƒ–•‘—”…‡Ǣ
ȋ‹‹‹Ȍ ƒ›”‡Ž‹‡ˆ‘ˆ–ƒš‘”†‡†—…–‹‘‘ˆ–ƒš…Žƒ‹‡†—†‡”•‡…–‹‘ͻͲ‘”•‡…–‹‘ͻͳ‘ƒ……‘—–‘ˆ–ƒš’ƒ‹†‹ƒ…‘—–”›
‘—–•‹†‡†‹ƒǢ
ȋ‹˜Ȍ ƒ›”‡Ž‹‡ˆ‘ˆ–ƒš…Žƒ‹‡†—†‡”•‡…–‹‘ͻͲ‘ƒ……‘—–‘ˆ–ƒš’ƒ‹†‹ƒ›•’‡…‹ϐ‹‡†–‡””‹–‘”›‘—–•‹†‡†‹ƒ
”‡ˆ‡””‡†–‘‹–Šƒ–•‡…–‹‘Ǣ
ȋ˜Ȍ ƒ›–ƒš…”‡†‹–…Žƒ‹‡†–‘„‡•‡–‘ˆˆ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͳͷ ‘”•‡…–‹‘ͳͳͷ Ǣ
ȋ˜‹Ȍ ƒ›”‡Ž‹‡ˆ‘ˆ–ƒš…Žƒ‹‡†—Ȁ•ͺͻǢ
ȋ˜‹‹Ȍ ƒ›–ƒš‘”‹–‡”‡•–’ƒ›ƒ„Ž‡ƒ•’‡”’”‘˜‹•‹‘‘ˆ•‡…–‹‘ͳͻͳȋʹȌǤ
…ƒ•‡‹†‡Žƒ›‹ˆ—”‹•Š‹‰‘ˆ”‡–—”‘ˆ‹…‘‡ǡ•‡Žˆƒ••‡••‡––ƒš•ŠƒŽŽƒŽ•‘‹…Ž—†‡‹–‡”‡•–ˆ‘”†‡Žƒ›ƒ†ˆ‡‡ˆ‘”
†‡Žƒ›‹ϐ‹Ž‹‰”‡–—”—†‡”•‡…–‹‘ʹ͵Ͷ Ǥ
‡…‡ǡ–Š‹•‹•ƒƒ••‡••‡–„›–Š‡ƒ••‡••‡‡Š‹•‡Žˆ…ƒŽŽ‡†Dz‡Žˆ••‡••‡–dz„‡ˆ‘”‡ϐ‹Ž‹‰‘ˆŠ‹•‹…‘‡–ƒš”‡–—”ǡ
•‘–Šƒ–™‘”‘ˆ‹…‘‡–ƒš†‡’ƒ”–‡–„‡…ƒ‡‡ƒ•›Ǥ

Inquiry before Assessment [Section 142]

1. Issue of notice to the assessee to submit return (if not submitted earlier)ǣ Š‡ ’”‘˜‹•‹‘• …‘–ƒ‹‡† ‹
•‡…–‹‘ͳͶʹȋͳȌȋ‹Ȍ’”‘˜‹†‡–Šƒ–‹ƒ…ƒ•‡™Š‡”‡ƒ’‡”•‘Šƒ•‘–ƒ†‡ƒ”‡–—”‘ˆŠ‹•‹…‘‡„‡ˆ‘”‡–Š‡‡†‘ˆ–Š‡
”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›•‡”˜‡ƒ‘–‹…‡ƒˆ–‡”–Š‡‡†‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”
—†‡”•ƒ‹†•—„Ǧ•‡…–‹‘”‡“—‹”‹‰•—…Š’‡”•‘–‘ˆ—”‹•ŠŠ‹•”‡–—”‘ˆ‹…‘‡Ǥ
Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒ•–‘’”‘†—…‡ǡ‘”…ƒ—•‡–‘„‡’”‘†—…‡†ǡ•—…Šƒ……‘—–•‘”†‘…—‡–•ƒ†–‘ˆ—”‹•Š‹
™”‹–‹‰ƒ†˜‡”‹ϐ‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”‹ˆ‘”ƒ–‹‘‹•—…Šˆ‘”ƒ†‘•—…Š’‘‹–•‘”ƒ––‡”•ȋ‹…Ž—†‹‰ƒ
•–ƒ–‡‡–‘ˆƒŽŽƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡ƒ••‡••‡‡ǡ™Š‡–Š‡”‹…Ž—†‡†‹–Š‡ƒ……‘—–•‘”‘–ȌǤ‘™‡˜‡”ǡ–Š‡’”‡˜‹‘—•
ƒ’’”‘˜ƒŽ‘ˆ–Š‡ ‘‹–‘‹••‹‘‡”•ŠƒŽŽ„‡‘„–ƒ‹‡†„‡ˆ‘”‡”‡“—‹”‹‰–Š‡ƒ••‡••‡‡–‘ˆ—”‹•Šƒ•–ƒ–‡‡–‘ˆƒŽŽ
ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‘–‹…Ž—†‡†‹–Š‡ƒ……‘—–•Ǥ —”–Š‡”ǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ‘–”‡“—‹”‡–Š‡’”‘†—…–‹‘‘ˆ
ƒ›ƒ……‘—–•”‡Žƒ–‹‰–‘ƒ’‡”‹‘†‘”‡–Šƒ–Š”‡‡›‡ƒ”•’”‹‘”–‘–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
2. Make Inquiry and give opportunity of being heard u/s 142(2)ǣ ‘”–Š‡’—”’‘•‡‘ˆ‘„–ƒ‹‹‰ˆ—ŽŽ‹ˆ‘”ƒ–‹‘
‹”‡•’‡…–‘ˆ–Š‡‹…‘‡‘”Ž‘••‘ˆƒ›’‡”•‘ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒ‡•—…Š‹“—‹”›ƒ•Š‡…‘•‹†‡”•‡…‡••ƒ”›Ǥ
3. Give direction to get books of accounts audited u/s 142(2A) to (2D) ǣ ƒ˜‹‰ ”‡‰ƒ”† –‘ –Š‡ ƒ–—”‡ ƒ†
…‘’Ž‡š‹–›‘ˆ–Š‡ƒ……‘—–•˜‘Ž—‡‘ˆ–Š‡ƒ……‘—–•ǡ†‘—„–•ƒ„‘—––Š‡…‘””‡…–‡••‘ˆ–Š‡ƒ……‘—–•ǡ—Ž–‹’Ž‹…‹–›‘ˆ
–”ƒ•ƒ…–‹‘‹–Š‡ƒ……‘—–•‘”•’‡…‹ƒŽ‹•‡†ƒ–—”‡‘ˆ„—•‹‡••ƒ…–‹˜‹–›‘ˆ–Š‡ƒ••‡••‡‡ƒ†–Š‡‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡ǡ
ƒ••‡••‹‰‘ˆϐ‹…‡”‹•‘ˆ–Š‡‘’‹‹‘–Šƒ–‹–‹•‡…‡••ƒ”›–‘‘”†‡”ˆ‘”–Š‡ƒ—†‹–ǡ–Š‡™‹–Š–Š‡’”‡˜‹‘—•ƒ’’”‘˜ƒŽ‘ˆ–Š‡
Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›†‹”‡…–ƒƒ••‡••‡‡–‘‰‡–Š‹•ƒ……‘—–•ƒ—†‹–‡†„›
ƒƒ……‘—–ƒ–‡˜‡‹ˆ–Š‡ƒ……‘—–•Šƒ˜‡‡ƒ”Ž‹‡”„‡‡ƒ—†‹–‡†Ǥ
Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ‘–†‹”‡…––Š‡ƒ••‡••‡‡–‘‰‡––Š‡ƒ……‘—–•ƒ—†‹–‡†—Ž‡••–Š‡ƒ••‡••‡‡Šƒ•„‡‡‰‹˜‡ƒ
”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
˜‡”›”‡’‘”–—†‡”•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡ˆ—”‹•Š‡†„›–Š‡ƒ••‡••‡‡–‘–Š‡••‡••‹‰ˆϐ‹…‡”™‹–Š‹–Š‡’‡”‹‘†ƒ•
•’‡…‹ϐ‹‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ
‘™‡˜‡”ǡ–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ǡsuo motuǡ‘”‘ƒƒ’’Ž‹…ƒ–‹‘ƒ†‡‹–Š‹•„‡ŠƒŽˆ„›–Š‡ƒ••‡••‡‡ƒ†ˆ‘”ƒ›
‰‘‘†ƒ†•—ˆϐ‹…‹‡–”‡ƒ•‘ǡ‡š–‡†–Š‡•ƒ‹†’‡”‹‘†„›•—…Šˆ—”–Š‡”’‡”‹‘†‘”’‡”‹‘†•ƒ•Š‡–Š‹•ϐ‹–„—–•ŠƒŽŽ‘–
‡š…‡‡†ͳͺͲ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡†‹”‡…–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋʹȌ‹•”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡Ǥ
Š‡‡š’‡•‡•‘ˆǡƒ†‹…‹†‡–ƒŽ–‘ǡ•—…Šƒ—†‹–ȋ‹…Ž—†‹‰–Š‡”‡—‡”ƒ–‹‘‘ˆ–Š‡……‘—–ƒ–Ȍ•ŠƒŽŽ„‡†‡–‡”‹‡†
„› –Š‡ ”‹…‹’ƒŽ Š‹‡ˆ ‘‹••‹‘‡” ‘” Š‹‡ˆ ‘‹••‹‘‡” ‘” ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” ‹
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͹͵

ƒ……‘”†ƒ…‡™‹–Š•—…Š‰—‹†‡Ž‹‡•ƒ•ƒ›„‡’”‡•…”‹„‡†ƒ†–Š‡‡š’‡•‡••‘†‡–‡”‹‡†•ŠƒŽŽ„‡’ƒ‹†„›–Š‡‡–”ƒŽ

‘˜‡”‡–Ǥ
•–‹ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆƒ••‡–•„›ƒŽ—ƒ–‹‘ˆϐ‹…‡”ȏ‡…–‹‘ͳͶʹȐ
ͳǤ Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ǡˆ‘”–Š‡’—”’‘•‡•‘ˆƒ••‡••‡–‘””‡ƒ••‡••‡–ǡƒ‡ƒ”‡ˆ‡”‡…‡–‘ƒƒŽ—ƒ–‹‘
ˆϐ‹…‡”–‘‡•–‹ƒ–‡–Š‡˜ƒŽ—‡ǡ‹…Ž—†‹‰ˆƒ‹”ƒ”‡–˜ƒŽ—‡ǡ‘ˆƒ›ƒ••‡–ǡ’”‘’‡”–›‘”‹˜‡•–‡–ƒ†•—„‹–ƒ
…‘’›‘ˆ”‡’‘”––‘Š‹Ǥ
ʹǤ Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ƒ‡ƒ”‡ˆ‡”‡…‡–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ™Š‡–Š‡”‘”‘–Š‡
‹••ƒ–‹•ϐ‹‡†ƒ„‘—––Š‡…‘””‡…–‡••‘”…‘’Ž‡–‡‡••‘ˆ–Š‡ƒ……‘—–•‘ˆ–Š‡ƒ••‡••‡‡Ǥ
͵Ǥ Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”ǡ‘ƒ”‡ˆ‡”‡…‡ƒ†‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌǡ•ŠƒŽŽǡˆ‘”–Š‡’—”’‘•‡‘ˆ‡•–‹ƒ–‹‰–Š‡
˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–ǡ’”‘’‡”–›‘”‹˜‡•–‡–ǡŠƒ˜‡ƒŽŽ–Š‡’‘™‡”•–Šƒ–Š‡Šƒ•—†‡”•‡…–‹‘͵ͺ‘ˆ–Š‡‡ƒŽ–ŠǦ
–ƒš…–ǡͳͻͷ͹Ǥ
ͶǤ Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”•ŠƒŽŽǡ‡•–‹ƒ–‡–Š‡˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–ǡ’”‘’‡”–›‘”‹˜‡•–‡–ƒˆ–‡”–ƒ‹‰‹–‘ƒ……‘—–
•—…Š‡˜‹†‡…‡ƒ•–Š‡ƒ••‡••‡‡ƒ›’”‘†—…‡ƒ†ƒ›‘–Š‡”‡˜‹†‡…‡‹Š‹•’‘••‡••‹‘‰ƒ–Š‡”‡†ǡƒˆ–‡”‰‹˜‹‰ƒ
‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†–‘–Š‡ƒ••‡••‡‡Ǥ
ͷǤ Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”ƒ›‡•–‹ƒ–‡–Š‡˜ƒŽ—‡‘ˆ–Š‡ƒ••‡–ǡ’”‘’‡”–›‘”‹˜‡•–‡––‘–Š‡„‡•–‘ˆŠ‹•Œ—†‰‡–ǡ
‹ˆ–Š‡ƒ••‡••‡‡†‘‡•‘–…‘Ǧ‘’‡”ƒ–‡‘”…‘’Ž›™‹–ŠŠ‹•†‹”‡…–‹‘•Ǥ
͸Ǥ Š‡ ƒŽ—ƒ–‹‘ ˆϐ‹…‡” •ŠƒŽŽ •‡† ƒ …‘’› ‘ˆ –Š‡ ”‡’‘”– ‘ˆ –Š‡ ‡•–‹ƒ–‡ ƒ†‡ —†‡” •—„Ǧ•‡…–‹‘ ȋͶȌ ‘” •—„Ǧ
•‡…–‹‘ȋͷȌǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–‘–Š‡••‡••‹‰ˆϐ‹…‡”ƒ†–Š‡ƒ••‡••‡‡ǡ™‹–Š‹ƒ’‡”‹‘†‘ˆ•‹š‘–Š•ˆ”‘
–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Šƒ”‡ˆ‡”‡…‡‹•ƒ†‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌǤ
͹Ǥ Š‡••‡••‹‰ˆϐ‹…‡”ƒ›ǡ‘”‡…‡‹’–‘ˆ–Š‡”‡’‘”–ˆ”‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”ǡƒ†ƒˆ–‡”‰‹˜‹‰–Š‡ƒ••‡••‡‡ƒ
‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ǡ–ƒ‡‹–‘ƒ……‘—–•—…Š”‡’‘”–‹ƒ‹‰–Š‡ƒ••‡••‡–‘””‡ƒ••‡••‡–Ǥ
DzƒŽ—ƒ–‹‘ˆϐ‹…‡”dzŠƒ•–Š‡•ƒ‡‡ƒ‹‰ƒ•‹…Žƒ—•‡ȋ”Ȍ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡‡ƒŽ–ŠǦ–ƒš…–ǡͳͻͷ͹Ǥ
Faceless Inquiry and Valuation [Section 142B]
‡…–‹‘ͳͶʹŠƒ•„‡‡‹•‡”–‡†™‹–Š‡ˆˆ‡…–ˆ”‘ͳ•–‘˜‡„‡”ǡʹͲʹͲ–‘‡’‘™‡”–Š‡‡–”ƒŽ
‘˜‡”‡––‘‘–‹ˆ›
–Š‡•…Š‡‡ˆ‘”ˆƒ…‡Ž‡••’”‘…‡••‡•ˆ‘”‡Ž‹‹ƒ–‹‰’Š›•‹…ƒŽ‹–‡”ˆƒ…‡Ǥ
Faceless Scheme [Section 142B(1)]ǣŠ‡‡–”ƒŽ
‘˜‡”‡–‹•‡’‘™‡”‡†–‘ƒ‡ƒ•…Š‡‡ȋˆƒ…‡Ž‡••‡“—‹”›
ƒ†˜ƒŽ—ƒ–‹‘•…Š‡‡Ȍ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡‘ˆϐ‹…‹ƒŽ‰ƒœ‡––‡ˆ‘”–Š‡’—”’‘•‡‘ˆǣ
ȋƒȌ ••—‡‘–‹…‡—Ȁ•ͳͶʹȋͳȌ‘”
ȋ„Ȍ ƒ‹‰‡“—‹”›–‘‘„–ƒ‹ˆ—ŽŽ‹ˆ‘”ƒ–‹‘‹”‡•’‡…–‘‹…‘‡‘”Ž‘••‘ˆƒ›’‡”•‘—Ȁ•ͳͶʹȋʹȌ‘”
ȋ…Ȍ †‹”‡…–‹‰–Š‡ƒ••‡••‡‡–‘‰‡–Š‹•ƒ……‘—–•ƒ—†‹–‡†„›ƒƒ……‘—–ƒ–—Ȁ•ͳͶʹȋʹȌ‘”
ȋ†Ȍ ƒ‹‰ƒ”‡ˆ‡”‡…‡–‘–Š‡˜ƒŽ—ƒ–‹‘‘ˆϐ‹…‡”–‘‡•–‹ƒ–‡–Š‡˜ƒŽ—‡‘ˆƒ›ƒ••‡–ǡ’”‘’‡”–›‘”‹˜‡•–‡–—Ȁ•
ͳͶʹǤ
Š‡‘„Œ‡…–‹˜‡‘ˆ–Š‡•…Š‡‡‹•–‘‹’ƒ”–‰”‡ƒ–‡”‡ˆϐ‹…‹‡…›ǡ–”ƒ•’ƒ”‡…›ƒ†ƒ……‘—–ƒ„‹Ž‹–›„›
ȋƒȌ ‡Ž‹‹ƒ–‹‰ –Š‡ ‹–‡”ˆƒ…‡ „‡–™‡‡ –Š‡ ‹…‘‡Ǧ–ƒš ƒ—–Š‘”‹–› ‘” ƒŽ—ƒ–‹‘ ˆϐ‹…‡” ƒ† –Š‡ ƒ••‡••‡‡ ‘” ƒ›
’‡”•‘–‘–Š‡‡š–‡––‡…Š‘Ž‘‰‹…ƒŽŽ›ˆ‡ƒ•‹„Ž‡Ǣ
ȋ„Ȍ ‘’–‹‹•‹‰—–‹Ž‹•ƒ–‹‘‘ˆ–Š‡”‡•‘—”…‡•–Š”‘—‰Š‡…‘‘‹‡•‘ˆ•…ƒŽ‡ƒ†ˆ—…–‹‘ƒŽ•’‡…‹ƒŽ‹•ƒ–‹‘Ǣ
ȋ…Ȍ ‹–”‘†—…‹‰ƒ–‡ƒǦ„ƒ•‡†‹••—ƒ…‡‘ˆ‘–‹…‡‘”ƒ‹‰‘ˆ‡“—‹”‹‡•‘”‹••—ƒ…‡‘ˆ†‹”‡…–‹‘•‘”˜ƒŽ—ƒ–‹‘
™‹–Š†›ƒ‹…Œ—”‹•†‹…–‹‘Ǥ
Summary Assessment [Section 143(1)]
—ƒ”›ƒ••‡••‡–‹•–Š‡ƒ••‡••‡–™‹–Š‘—–…ƒŽŽ‹‰–Š‡ƒ••‡••‡‡ƒ†™‹–Š‘—–Š—ƒ‹–‡”˜‡–‹‘Ǥ••‡••‡–
—†‡” •‡…–‹‘ ͳͶ͵ȋͳȌ ‹• Ž‹‡ ’”‡Ž‹‹ƒ”› …Š‡…‹‰ ‘ˆ –Š‡ ‹…‘‡ –ƒš ”‡–—”Ǥ †‡” –Š‹• ƒ••‡••‡– ‘ †‡–ƒ‹Ž‡†
•…”—–‹› ‘ˆ ‹…‘‡ –ƒš ”‡–—” ‹• …ƒ””‹‡† ‘—– „—– –‘–ƒŽ ‹…‘‡ ‘” Ž‘•• ‹• …‘’—–‡† ƒˆ–‡” ƒ‹‰ –Š‡ ˆ‘ŽŽ‘™‹‰
ƒ†Œ—•–‡–•ȋ‹ˆƒ›Ȍǡƒ‡Ž›
 ͷ͹Ͷ Lesson 10 Ȉ EP-TL

‹Ǥ ƒ›ƒ”‹–Š‡–‹…ƒŽ‡””‘”‹–Š‡”‡–—”Ǣ‘”
‹‹Ǥ ƒ‹…‘””‡…–…Žƒ‹ǡ‹ˆ•—…Š‹…‘””‡…–…Žƒ‹‹•ƒ’’ƒ”‡–ˆ”‘ƒ›‹ˆ‘”ƒ–‹‘‹–Š‡”‡–—”Ǣ‘”
‹‹‹Ǥ †‹•ƒŽŽ‘™ƒ…‡‘ˆŽ‘••…Žƒ‹‡†ǡ‹ˆ”‡–—”‘ˆ–Š‡’”‡˜‹‘—•›‡ƒ”ˆ‘”™Š‹…Š•‡–Ǧ‘ˆˆ‘ˆŽ‘••‹•…Žƒ‹‡†™ƒ•ˆ—”‹•Š‡†
„‡›‘†–Š‡†—‡†ƒ–‡•’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǢ‘”
‹˜Ǥ †‹•ƒŽŽ‘™ƒ…‡‘ˆ‡š’‡†‹–—”‡‹†‹…ƒ–‡†‹–Š‡ƒ—†‹–”‡’‘”–„—–‘––ƒ‡‹–‘ƒ……‘—–‹…‘’—–‹‰–Š‡–‘–ƒŽ
‹…‘‡‹–Š‡”‡–—”Ǣ‘”
˜Ǥ †‹•ƒŽŽ‘™ƒ…‡‘ˆ†‡†—…–‹‘…Žƒ‹‡†—Ȁ•ͳͲǡͺͲ–‘ͺͲǦǡ‹ˆ–Š‡”‡–—”‹•ˆ—”‹•Š‡†„‡›‘†–Š‡†—‡†ƒ–‡
•’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͳ͵ͻȋͳȌǢ‘”
˜‹Ǥ ƒ††‹–‹‘‘ˆ‹…‘‡ƒ’’‡ƒ”‹‰‹ ‘”ʹ͸™Š‹…ŠŠƒ•‘–„‡‡‹…Ž—†‡†‹…‘’—–‹‰–Š‡–‘–ƒŽ‹…‘‡‹–Š‡
”‡–—”Ǥ ‘™‡˜‡”ǡ ‘ •—…Š ƒ†Œ—•–‡– •ŠƒŽŽ „‡ ƒ†‡ —Ž‡•• ƒ ‹–‹ƒ–‹‘ ‹• ‰‹˜‡ –‘ –Š‡ ƒ••‡••‡‡ ‘ˆ •—…Š
ƒ†Œ—•–‡–‡‹–Š‡”‹™”‹–‹‰‘”‹‡Ž‡…–”‘‹…‘†‡Ǥ
ˆ–‡”ƒ‹‰–Š‡ƒˆ‘”‡•ƒ‹†ƒ†Œ—•–‡–•ǡ‹…‘‡–ƒš†‡’ƒ”–‡–•‡†•ƒ‹–‹ƒ–‹‘—†‡”•‡…–‹‘ͳͶ͵ȋͳȌ‹™Š‹…Š
…‘’ƒ”ƒ–‹˜‡‹…‘‡–ƒš…‘’—–ƒ–‹‘ȏ‹Ǥ‡Ǥǡƒ•’”‘˜‹†‡†„›ƒƒ••‡••‡‡‹‹…‘‡–ƒš”‡–—”ƒ†ƒ•…‘’—–‡†—Ȁ•
ͳͶ͵ȋͳȌȐǡ™Š‹…Š•‡”˜‡•ƒ•†‡ƒ†‘–‹…‡‹ˆ–Š‡”‡‹•ƒ–ƒšŽ‹ƒ„‹Ž‹–›‘–Š‡”™‹•‡•‹’Ž›ƒ‹–‹ƒ–‹‘ƒ„‘—–’”‘…‡••‹‰‘ˆ
”‡–—”‘ˆ‹…‘‡Ǥ
Time limit for intimation under section 143(1) : ‘‹–‹ƒ–‹‘ˆ‘”–ƒš‘”‹–‡”‡•–†—‡—†‡”•‡…–‹‘ͳͶ͵ȋͳȌ•ŠƒŽŽ
„‡•‡–ƒˆ–‡”–Š‡‡š’‹”›‘ˆ9 monthsˆ”‘–Š‡‡†‘ˆϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š”‡–—”‘ˆ‹…‘‡‹•ƒ†‡Ǥ[The time
limit for sending an intimation has been reduced from 1 year to 9 months vide Finance Act, 2021]
šƒ’Ž‡ǣ ‘”–Š‡ƒ••‡••‡–›‡ƒ”ʹͲʹͳǦʹʹǡ”ǤƒŒƒϐ‹Ž‡•–Š‡‘ʹͷ–Š —Ž›ʹͲʹͳǤ–‹ƒ–‹‘—†‡”•‡…–‹‘
ͳͶ͵ȋͳȌƒ›„‡•‡–—’–‘͵ͳ•–‡…‡„‡”ǡʹͲʹͳǤ
Processing under section 143(1) be mandated before Assessmentǣ†‡”–Š‡‡š‹•–‹‰’”‘˜‹•‹‘‘ˆ•—„Ǧ•‡…–‹‘
ȋͳȌ‘ˆ•‡…–‹‘ͳͶ͵ǡ’”‘…‡••‹‰‘ˆƒ”‡–—”‹•‘–‡…‡••ƒ”›™Š‡”‡ƒ‘–‹…‡Šƒ•„‡‡‹••—‡†–‘–Š‡ƒ••‡••‡‡—†‡”
•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ–Š‡•ƒ‹†•‡…–‹‘Ǥƒ‡†‡–Šƒ•„‡‡ƒ†‡‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ–Š‡…––‘’”‘˜‹†‡–Šƒ–
„‡ˆ‘”‡ƒ‹‰ƒƒ••‡••‡–—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ͳͶ͵ǡƒ”‡–—”•ŠƒŽŽ„‡’”‘…‡••‡†—†‡”•—„Ǧ•‡…–‹‘
ȋͳȌ‘ˆ•‡…–‹‘ͳͶ͵Ǥ

Scrutiny (Regular) Assessment [Section 143(2) & (3)]

Š‡”‡ƒ”‡–—”Šƒ•„‡‡ƒ†‡—†‡”‡…–‹‘ͳ͵ͻǡ‘”‹”‡•’‘•‡–‘ƒ‘–‹…‡—†‡”—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘
ͳͶʹǡ –Š‡ ••‡••‹‰ ˆϐ‹…‡” •ŠƒŽŽǡ ‹ˆ Š‡ …‘•‹†‡”• ‡…‡••ƒ”› ‘” ‡š’‡†‹‡– –‘ ‡•—”‡ –Šƒ– –Š‡ ƒ••‡••‡‡ Šƒ• ‘–
—†‡”•–ƒ–‡†–Š‡‹…‘‡‘”Šƒ•‘–…‘’—–‡†‡š…‡••‹˜‡Ž‘••‘”Šƒ•‘–—†‡”’ƒ‹†–Š‡–ƒš‹ƒ›ƒ‡”ǡ•‡”˜‡‘
–Š‡ƒ••‡••‡‡ƒ‘–‹…‡”‡“—‹”‹‰Š‹ǡ‘ƒ†ƒ–‡–‘„‡•’‡…‹ϐ‹‡†–Š‡”‡‹ǡ‡‹–Š‡”–‘ƒ––‡†Š‹•‘ˆϐ‹…‡‘”–‘’”‘†—…‡ǡ‘”
…ƒ—•‡–‘„‡’”‘†—…‡†–Š‡”‡ǡƒ›‡˜‹†‡…‡‘™Š‹…Š–Š‡ƒ••‡••‡‡ƒ›”‡Ž›‹•—’’‘”–‘ˆ–Š‡”‡–—”ǣ
”‘˜‹†‡†–Šƒ–‘‘–‹…‡—†‡”•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡•‡”˜‡†‘–Š‡ƒ••‡••‡‡ƒˆ–‡”–Š‡‡š’‹”›‘ˆ͵‘–Š•ˆ”‘–Š‡
‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡”‡–—”‹•ˆ—”‹•Š‡†Ǥ[The time limit for serving notice has been reduced
from 6 months to 3 months vide Finance Act, 2021]
–Š‡†ƒ›•’‡…‹ϐ‹‡†‹–Š‡‘–‹…‡‹••—‡†—†‡”—„Ǧ•‡…–‹‘ȋʹȌǡ‘”ƒ••‘‘ƒˆ–‡”™ƒ”†•ƒ•ƒ›„‡ǡƒˆ–‡”Š‡ƒ”‹‰•—…Š
‡˜‹†‡…‡ƒ•–Š‡ƒ••‡••‡‡ƒ›’”‘†—…‡ƒ†•—…Š‘–Š‡”‡˜‹†‡…‡ƒ•–Š‡••‡••‹‰ˆϐ‹…‡”ƒ›”‡“—‹”‡‘•’‡…‹ϐ‹‡†
’‘‹–•ǡƒ†ƒˆ–‡”–ƒ‹‰‹–‘ƒ……‘—–ƒŽŽ”‡Ž‡˜ƒ–ƒ–‡”‹ƒŽ™Š‹…ŠŠ‡Šƒ•‰ƒ–Š‡”‡†ǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽǡ„›ƒ
‘”†‡”‹™”‹–‹‰ǡƒ‡ƒƒ••‡••‡–‘ˆ–Š‡–‘–ƒŽ‹…‘‡‘”Ž‘••‘ˆ–Š‡ƒ••‡••‡‡ǡƒ††‡–‡”‹‡–Š‡•—’ƒ›ƒ„Ž‡„›
Š‹‘””‡ˆ—†‘ˆƒ›ƒ‘—–†—‡–‘Š‹‘–Š‡„ƒ•‹•‘ˆ•—…Šƒ••‡••‡–Ǥ

Best Judgment Assessment [Section 144]

Š‡••‡••‹‰ˆϐ‹…‡”ǡƒˆ–‡”–ƒ‹‰‹–‘ƒ……‘—–ƒŽŽ”‡Ž‡˜ƒ–ƒ–‡”‹ƒŽ™Š‹…ŠŠ‡Šƒ•‰ƒ–Š‡”‡†ǡƒ†ƒˆ–‡”‰‹˜‹‰–Š‡
ƒ••‡••‡‡ ƒ ‘’’‘”–—‹–› ‘ˆ „‡‹‰ Š‡ƒ”†ǡ ƒ‡• –Š‡ ƒ••‡••‡– ‘ˆ –Š‡ –‘–ƒŽ ‹…‘‡ ‘” Ž‘•• –‘ –Š‡ „‡•– ‘ˆ Š‹•
Œ—†‰‡–ƒ††‡–‡”‹‡–Š‡•—’ƒ›ƒ„Ž‡„›–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ•—…Šƒ••‡••‡–‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
Ȉ ˆƒ›’‡”•‘ˆƒ‹Ž•–‘ƒ‡–Š‡”‡–—””‡“—‹”‡†—†‡”•‡…–‹‘ͳ͵ͻȋͳȌƒ†Šƒ•‘–ƒ†‡ƒ”‡–—”‘”ƒ”‡˜‹•‡†
”‡–—”—†‡”•‡…–‹‘ͳ͵ͻȋͶȌ‘”ͳ͵ͻȋͷȌǡ‘”
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͹ͷ

Ȉ Š‡ƒ’‡”•‘ˆƒ‹Ž•–‘…‘’Ž›™‹–ŠƒŽŽ–Š‡–‡”•‘ˆƒ‘–‹…‡‹••—‡†—†‡”•‡…–‹‘ͳͶʹȋͳȌ‘”ˆƒ‹Ž•–‘…‘’Ž›
™‹–Šƒ†‹”‡…–‹‘‹••—‡†—†‡”•‡…–‹‘ͳͶʹȋʹȌˆ‘”‰‡––‹‰–Š‡ƒ……‘—–•ƒ—†‹–‡†ǡ‘”
Ȉ ˆ ƒ› ’‡”•‘ Šƒ˜‹‰ ƒ†‡ ƒ ”‡–—”ǡ ˆƒ‹Ž• –‘ …‘’Ž› ™‹–Š ƒŽŽ –Š‡ –‡”• ‘ˆ ƒ ‘–‹…‡ ‹••—‡† —†‡” •‡…–‹‘
ͳͶ͵ȋʹȌǤ
 ”‹‘”–‘–Š‡’”‘…‡‡†‹‰•ǡ–Š‡•Š‘—Ž†‹••—‡ƒ•Š‘™…ƒ—•‡‘–‹…‡–‘–Š‡ƒ••‡••‡‡Ǥ‘™‡˜‡”‹ˆ–Š‡ƒ••‡••‡‡
Šƒ•ƒŽ”‡ƒ†›‹••—‡†‘–‹…‡—†‡”•‡…–‹‘ͳͶʹȋͳȌȋ‹Ȍƒ†–Š‡ƒ••‡••‡‡Šƒ•‘–…‘’Ž‹‡†™‹–Š–Š‡–‡”•–Š‡
…ƒ’”‘…‡‡†ˆ—”–Š‡”™‹–Š‘—–‹••—‹‰ƒ•Š‘™…ƒ—•‡‘–‹…‡Ǥ
 —”–Š‡”  …ƒ‘– ƒ••‡•• –Š‡ ‹…‘‡ „‡Ž‘™ ”‡–—”‡† ‹…‘‡ ƒ† …ƒ‘– ƒ••‡•• Ž‘••‡• Š‹‰Š‡” –Šƒ –Š‡
”‡–—”‡†Ž‘••‡•Ǥ”‡ˆ—†…ƒ‘–„‡‰”ƒ–‡†—†‡”•‡…–‹‘ͳͶͶǤ
 Š‡ ƒ••‡••‹‰ ‘ˆϐ‹…‡” …ƒ ƒŽ•‘ ”‡Œ‡…– –Š‡ ƒ……‘—–• „‘‘ —†‡” •‡…–‹‘ ͳͶͷ ƒ† …ƒ ƒ‡ „‡•– Œ—†‰‡–
ƒ••‡••‡–—†‡”•‡…–‹‘ͳͶͶ‹ˆǣ
Ȉ Š‡ƒ……‘—–•„‘‘•ƒ”‡‹…‘””‡…–ǡˆƒŽ•‡‘”‹…‘’Ž‡–‡Ǥ
Ȉ ˆ–Š‡ƒ……‘—–‹‰‡–Š‘†‡’Ž‘›‡†‹••—…Š–Šƒ––Š‡’”‘ϐ‹–…ƒ‘–„‡†‡”‹˜‡†ˆ”‘‹–…‘””‡…–Ž›Ǥ
Ȉ Š‡”‡–Š‡‡–Š‘†‘ˆƒ……‘—–‹‰ƒ†‘’–‡†„›–Š‡ƒ••‡••‡‡‹•‘–ˆ‘ŽŽ‘™‡†„›Š‹”‡‰—Žƒ”Ž›‘”‹…‘‡Šƒ•‘–
„‡‡…‘’—–‡†‹ƒ……‘”†ƒ…‡™‹–Š‘–‹ϐ‹‡†•–ƒ†ƒ”†•Ǥ
Ȉ ˆ –Š‡ ƒ••‡••‡‡ Šƒ• ‘– ˆ‘ŽŽ‘™‡† –Š‡ ‹…‘‡ …‘’—–ƒ–‹‘ ƒ† †‹•…Ž‘•—”‡ •–ƒ†ƒ”†• ‘–‹ϐ‹‡† „› –Š‡
‰‘˜‡”‡–Ǥ
E-ASSESSMENTS
Š‡ ‹ƒ…‡…–ǡʹͲͳͺŠƒ•‹•‡”–‡†ƒ‡™•—„Ǧ•‡…–‹‘ȋ͵Ȍ‹‡…–‹‘ͳͶ͵–Šƒ––Š‡‡–”ƒŽ
‘˜–Ǥƒ›ƒ‡ƒ•…Š‡‡
ˆ‘”–Š‡’—”’‘•‡‘ˆƒ‹‰ƒ••‡••‡–•‘ƒ•–‘‹’ƒ”–‰”‡ƒ–‡”‡ˆϐ‹…‹‡…›ǡ–”ƒ•’ƒ”‡…›ƒ†ƒ……‘—–ƒ„‹Ž‹–›„›ǣ
ȋƒȌ Ž‹‹ƒ–‹‰–Š‡‹–‡”ˆƒ…‡„‡–™‡‡–Š‡••‡••‹‰ˆϐ‹…‡”ƒ†–Š‡ƒ••‡••‡‡‹–Š‡…‘—”•‡‘ˆ’”‘…‡‡†‹‰–‘–Š‡
‡š–‡––‡…Š‘Ž‘‰‹…ƒŽŽ›ˆ‡ƒ•‹„Ž‡Ǥ
ȋ„Ȍ ’–‹‹•‹‰—–‹Ž‹œƒ–‹‘‘ˆ–Š‡”‡•‘—”…‡•–Š”‘—‰Š‡…‘‘‹‡•‘ˆ•…ƒŽ‡ƒ†ˆ—…–‹‘ƒŽ•’‡…‹ƒŽ‹œƒ–‹‘Ǥ
ȋ…Ȍ –”‘†—…‹‰ƒ–‡ƒǦ„ƒ•‡†ƒ••‡••‡–™‹–Š†›ƒ‹…Œ—”‹•†‹…–‹‘Ǥ
• ’ƒ”– ‘ˆ ‡Ǧ‰‘˜‡”ƒ…‡ ‹‹–‹ƒ–‹˜‡ –‘ ˆƒ…‹Ž‹–ƒ–‡ …‘†—…– ‘ˆ ƒ••‡••‡– ’”‘…‡‡†‹‰• ‡Ž‡…–”‘‹…ƒŽŽ›ǡ …‘‡Ǧ–ƒš
†‡’ƒ”–‡– Šƒ• Žƒ—…Š‡† ǮǦ”‘…‡‡†‹‰ǯ ˆƒ…‹Ž‹–›Ǥ †‡” –Š‹• ‹‹–‹ƒ–‹˜‡ǡ  Šƒ• ƒ†‡ ‹– ƒ†ƒ–‘”› ˆ‘” –Š‡ –ƒš
‘ˆϐ‹…‡”•–‘–ƒ‡”‡…‘—”•‡‘ˆ‡Ž‡…–”‘‹……‘—‹…ƒ–‹‘•ˆ‘”ƒŽŽŽ‹‹–‡†ƒ†…‘’Ž‡–‡•…”—–‹›ǤŠ‡Šƒ†‹••—‡†
–Š‡ ‹•–”—…–‹‘• ƒ† ‘–‹…‡ ˆ‘”ƒ–• ˆ‘” …‘†—…–‹‰ •…”—–‹› ƒ••‡••‡–• ‡Ž‡…–”‘‹…ƒŽŽ›Ǥ • ’‡” –Š‡ ‹•–”—…–‹‘ǡ
‡š…‡’– •‡ƒ”…Š ”‡Žƒ–‡† ƒ••‡••‡–•ǡ ƒŽŽ •…”—–‹› ƒ••‡••‡–• •ŠƒŽŽ „‡ …‘†—…–‡† ‘Ž› –Š”‘—‰Š –Š‡ ǮǦ”‘…‡‡†‹‰ǯ
ˆ—…–‹‘ƒŽ‹–›ƒ˜ƒ‹Žƒ„Ž‡ƒ–‡Ǧϐ‹Ž‹‰™‡„•‹–‡‘ˆ…‘‡Ǧ–ƒš‡’ƒ”–‡–Ǥ
ƒ‡†‡–Šƒ•„‡‡ƒ†‡‹•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ͳͶ͵‘ˆ–Š‡…––‘ǡǦ
ȋ‹Ȍ ‡š’ƒ†–Š‡•…‘’‡•‘ƒ•–‘‹…Ž—†‡–Š‡”‡ˆ‡”‡…‡‘ˆ•‡…–‹‘ͳͶͶ‘ˆ–Š‡…–”‡Žƒ–‹‰–‘„‡•–Œ—†‰‡‡–ƒ••‡••‡–
‹–Š‡•ƒ‹†•—„Ǧ•‡…–‹‘Ǣ
ȋ‹‹Ȍ ’”‘˜‹†‡–Šƒ–‡–”ƒŽ
‘˜‡”‡–ƒ›‹••—‡ƒ›†‹”‡…–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ–Š‡•ƒ‹†•‡…–‹‘—’–‘
͵ͳ•–ƒ”…ŠǡʹͲʹʹǤ
Š‹•ƒ‡†‡–™‹ŽŽ–ƒ‡‡ˆˆ‡…–ˆ”‘ͳ•–’”‹ŽǡʹͲʹͲǤ

FACELESS ASSESSMENT [SECTION 144B]

Š‡ ƒšƒ–‹‘ ƒ† –Š‡” ƒ™• ȋ‡Žƒšƒ–‹‘ ƒ† ‡†‡– ‘ˆ ‡”–ƒ‹ ”‘˜‹•‹‘•Ȍ …–ǡ ʹͲʹͲ Šƒ• ‹–”‘†—…‡†
ˆƒ…‡Ž‡•• ƒ••‡••‡– —†‡” •‡…–‹‘ ͳͶͶ ™Ǥ‡ǤˆǤ ͳ•– ’”‹Žǡ ʹͲʹͳǤ Dz ƒ…‡Ž‡•• ƒ••‡••‡–dz ‡ƒ• –Š‡ ƒ••‡••‡–
’”‘…‡‡†‹‰• …‘†—…–‡† ‡Ž‡…–”‘‹…ƒŽŽ› ‹ Ǯ‡Ǧ”‘…‡‡†‹‰ǯ ˆƒ…‹Ž‹–› –Š”‘—‰Š ƒ••‡••‡‡ǯ• ”‡‰‹•–‡”‡† ƒ……‘—– ‹
†‡•‹‰ƒ–‡†’‘”–ƒŽǤ
Procedure for Faceless Assessment [Section 144B(1)]Ǧ‡…–‹‘ͳͶͶȋͳȌ’”‘˜‹†‡•–Šƒ–ƒ••‡••‡–—†‡”•‡…–‹‘
ͳͶ͵ȋ͵Ȍǡ‹Ǥ‡Ǥǡ”‡‰—Žƒ”ƒ••‡••‡–Ȁ•…”—–‹›ƒ••‡••‡–‘”„‡•–Œ—†‰‡–ƒ••‡••‡–—†‡”•‡…–‹‘ͳͶͶ‹”‡•’‡…–‘ˆ
•—…Š–‡””‹–‘”‹ƒŽƒ”‡ƒ‘”’‡”•‘•‘”…Žƒ••‡•‘ˆ’‡”•‘•‘”‹…‘‡•‘”…Žƒ••‘ˆ‹…‘‡•‘”…ƒ•‡•‘”…Žƒ••‘ˆ…ƒ•‡•ǡƒ•
•’‡…‹ϐ‹‡†„›–Š‡—†‡”•‡…–‹‘ͳͶͶȋʹȌǡŠƒ•–‘„‡ƒ†‡‹ˆƒ…‡Ž‡••ƒ‡”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡ˆ‘ŽŽ‘™‹‰
’”‘…‡†—”‡ǣ
ͷ͹͸ Lesson 10 Ȉ EP-TL

Clause Provision
ȋ‹Ȍ Serving of Notice:Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–‡–”‡ȋ ȌŠƒ•–‘•‡”˜‡ƒ‘–‹…‡‘
–Š‡ƒ••‡••‡‡—†‡”•‡…–‹‘ͳͶ͵ȋʹȌ
ȋ‹‹Ȍ Filing of response to the notice by the Assessee:Š‡ƒ••‡••‡‡‹•”‡“—‹”‡†–‘ϐ‹Ž‡Š‹•”‡•’‘•‡
–‘–Š‡‘–‹…‡™‹–Š‹ͳͷ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ–Š‡‘–‹…‡–‘–Š‡ Ǥ
ȋ‹‹‹Ȍ Intimation by NFAC to the Assessee:Š‡ Šƒ•–‘‹–‹ƒ–‡–Š‡ƒ••‡••‡‡–Šƒ–ƒ••‡••‡–‹
Š‹•…ƒ•‡™‘—Ž†„‡…‘’Ž‡–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘…‡†—”‡Žƒ‹††‘™—†‡”–Š‹••‡…–‹‘‹
–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•Ȃ

Ȉ Š‡”‡–Š‡ƒ••‡••‡‡Šƒ•ˆ—”‹•Š‡†Š‹•”‡–—”‘ˆ‹…‘‡—†‡”•‡…–‹‘ͳ͵ͻǢ‘”‹”‡•’‘•‡
–‘ ƒ ‘–‹…‡ ‹••—‡† —†‡” •‡…–‹‘ ͳͶʹȋͳȌǢ ‘” ‹ ”‡•’‘•‡ –‘ ‘–‹…‡ ‹••—‡† —†‡” •‡…–‹‘
ͳͶͺȋͳȌƒ†ƒ‘–‹…‡—†‡”•‡…–‹‘ͳͶ͵ȋʹȌŠƒ•„‡‡‹••—‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”‘”–Š‡
’”‡•…”‹„‡†‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǣ‘”
Ȉ Š‡”‡ƒ••‡••‡‡Šƒ•‘–ˆ—”‹•Š‡†Š‹•”‡–—”‘ˆ‹…‘‡‹”‡•’‘•‡–‘ƒ‘–‹…‡‹••—‡†—†‡”
•‡…–‹‘ͳͶʹȋͳȌ„›–Š‡••‡••‹‰ˆϐ‹…‡”‘”—†‡”•‡…–‹‘ͳͶͺȋͳȌƒ†ƒ‘–‹…‡—†‡”•‡…–‹‘
ͳͶʹȋͳȌŠƒ•„‡‡‹••—‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”
ȋ‹˜Ȍ ••‹‰‹‰–Š‡•‡Ž‡…–‡†…ƒ•‡–‘ƒ•’‡…‹ϐ‹…ƒ••‡••‡–—‹–ǣŠ‡ Šƒ•–‘ƒ••‹‰–Š‡…ƒ•‡
•‡Ž‡…–‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆˆƒ…‡Ž‡••ƒ••‡••‡–—†‡”–Š‹••‡…–‹‘–‘ƒ•’‡…‹ϐ‹…ƒ••‡••‡–—‹–
‹ƒ›‘‡‡‰‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–‡–”‡ȋ Ȍ–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡
ȋȌǤ
ȋ˜Ȍ Request by Assessment Unit to NFAC for obtaining information/conducting enquiry:Š‡”‡
ƒ…ƒ•‡‹•ƒ••‹‰‡†–‘–Š‡ƒ••‡••‡–—‹–ǡ‹–ƒ›ƒ‡ƒ”‡“—‡•––‘–Š‡ ˆ‘”ǣ
Ȉ ‘„–ƒ‹‹‰•—…Šˆ—”–Š‡”‹ˆ‘”ƒ–‹‘ǡ†‘…—‡–•‘”‡˜‹†‡…‡ˆ”‘–Š‡ƒ••‡••‡‡‘”ƒ›‘–Š‡”
’‡”•‘ǡƒ•‹–ƒ›•’‡…‹ˆ›Ǣ
Ȉ …‘†—…–‹‰‘ˆ…‡”–ƒ‹‡“—‹”›‘”˜‡”‹ϐ‹…ƒ–‹‘„›˜‡”‹ϐ‹…ƒ–‹‘—‹–Ǣƒ†
Ȉ •‡‡‹‰–‡…Š‹…ƒŽƒ••‹•–ƒ…‡ˆ”‘–Š‡–‡…Š‹…ƒŽ—‹–Ǥ
ȋ˜‹Ȍ Notice or requisition to the assessee or any other person for obtaining the information:
Š‡ Šƒ•–‘‹••—‡ƒ’’”‘’”‹ƒ–‡‘–‹…‡‘””‡“—‹•‹–‹‘–‘–Š‡ƒ••‡••‡‡‘”ƒ›‘–Š‡”’‡”•‘ˆ‘”
‘„–ƒ‹‹‰–Š‡‹ˆ‘”ƒ–‹‘ǡ†‘…—‡–•‘”‡˜‹†‡…‡”‡“—‹•‹–‹‘‡†„›–Š‡ƒ••‡••‡–—‹–Ǥ
ȋ˜‹‹Ȍ ••‡••‡‡–‘ϐ‹Ž‡”‡•’‘•‡–‘–Š‡‘–‹…‡™‹–Š‹•’‡…‹ϐ‹‡†–‹‡ǣŠ‡ƒ••‡••‡‡™‘—Ž†„‡”‡“—‹”‡†
–‘ϐ‹Ž‡”‡•’‘•‡–‘–Š‡‘–‹…‡™‹–Š‹–Š‡–‹‡•’‡…‹ϐ‹‡†–Š‡”‡‹‘”•—…Š–‹‡ƒ•ƒ›„‡‡š–‡†‡†‘
–Š‡„ƒ•‹•‘ˆƒƒ’’Ž‹…ƒ–‹‘‹–Š‹•”‡‰ƒ”†ǡ–‘–Š‡ Ǥ
ȋ˜‹‹‹Ȍ ‡“—‡•–ˆ‘”…‘†—…–‹‰‹“—‹”›‘”˜‡”‹ϐ‹…ƒ–‹‘–‘„‡ƒ••‹‰‡†–‘‡”‹ϐ‹…ƒ–‹‘‹–„› ǣ
Š‡”‡ƒ”‡“—‡•–ˆ‘”…‘†—…–‹‰‘ˆ…‡”–ƒ‹‡“—‹”›‘”˜‡”‹ϐ‹…ƒ–‹‘„›–Š‡˜‡”‹ϐ‹…ƒ–‹‘—‹–Šƒ•„‡‡
ƒ†‡„›–Š‡ƒ••‡••‡–—‹–ǡ–Š‡”‡“—‡•–™‘—Ž†„‡ƒ••‹‰‡†„›–Š‡ –‘ƒ˜‡”‹ϐ‹…ƒ–‹‘—‹–‹
ƒ›‘‡‡‰‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–‡–”‡–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡Ǥ
ȋ‹šȌ Request for seeking technical assistance to be assigned to Technical Unit by NFAC:Š‡”‡ƒ
”‡“—‡•–ˆ‘”•‡‡‹‰–‡…Š‹…ƒŽƒ••‹•–ƒ…‡ˆ”‘–Š‡–‡…Š‹…ƒŽ—‹–Šƒ•„‡‡ƒ†‡„›–Š‡ƒ••‡••‡–
—‹–ǡ–Š‡”‡“—‡•–™‘—Ž†„‡ƒ••‹‰‡†„›–Š‡ –‘ƒ–‡…Š‹…ƒŽ—‹–‹ƒ›‘‡‡‰‹‘ƒŽ ƒ…‡Ž‡••
••‡••‡–‡–”‡–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡Ǥ
ȋšȌ ‡’‘”–”‡…‡‹˜‡†ˆ”‘–Š‡‡”‹ϐ‹…ƒ–‹‘‹–Ȁ‡…Š‹…ƒŽ‹––‘„‡•‡––‘••‡••‡–‹–ǣ
Š‡ Šƒ•–‘•‡†–Š‡”‡’‘”–”‡…‡‹˜‡†ˆ”‘–Š‡˜‡”‹ϐ‹…ƒ–‹‘—‹–‘”–Š‡–‡…Š‹…ƒŽ—‹––‘–Š‡
…‘…‡”‡†ƒ••‡••‡–—‹–Ǥ
ȋš‹Ȍ Serving notice u/s 144 for failure on the part of the assessee to comply with notice seeking
information / direction:Š‡”‡–Š‡ƒ••‡••‡‡ˆƒ‹Ž•–‘…‘’Ž›™‹–Š–Š‡‘–‹…‡•‡‡‹‰‹ˆ‘”ƒ–‹‘
‘” ‡˜‹†‡…‡ ‘” ‘–‹…‡ ‹••—‡† —†‡” •‡…–‹‘ ͳͶʹȋͳȌ ‘” ™‹–Š ƒ †‹”‡…–‹‘ ‹••—‡† —†‡” •‡…–‹‘
ͳͶʹȋʹȌˆ‘”•’‡…‹ƒŽƒ—†‹–ǡ–Š‡ Šƒ•–‘•‡”˜‡—’‘•—…Šƒ••‡••‡‡ƒ‘–‹…‡—†‡”•‡…–‹‘ͳͶͶ
‰‹˜‹‰Š‹ƒ‘’’‘”–—‹–›–‘•Š‘™Ǧ…ƒ—•‡ǡ‘ƒ†ƒ–‡ƒ†–‹‡–‘„‡•’‡…‹ϐ‹‡†‹–Š‡‘–‹…‡ǡ™Š›–Š‡
ƒ••‡••‡–‹Š‹•…ƒ•‡•Š‘—Ž†‘–„‡…‘’Ž‡–‡†–‘–Š‡„‡•–‘ˆ‹–•Œ—†‰‡–Ǥ
Lesson 10 ȈAssessment, Appeals & Revision ͷ͹͹

Clause Provision
ȋš‹‹Ȍ ••‡••‡‡–‘ϐ‹Ž‡”‡•’‘•‡–‘ƒ‘–‹…‡—†‡”•‡…–‹‘ͳͶͶǣŠ‡ƒ••‡••‡‡Šƒ•–‘ǡ™‹–Š‹–Š‡–‹‡
•’‡…‹ϐ‹‡† ‹ –Š‡ ‘–‹…‡ ‘” •—…Š –‹‡ ƒ• ƒ› „‡ ‡š–‡†‡† ‘ –Š‡ „ƒ•‹• ‘ˆ ƒ ƒ’’Ž‹…ƒ–‹‘ ‹ –Š‹•
”‡‰ƒ”†ǡϐ‹Ž‡Š‹•”‡•’‘•‡–‘–Š‡ Ǥ
ȋš‹‹‹Ȍ –‹ƒ–‹‘ –‘ ••‡••‡– ‹–ǡ ‘ˆ ˆƒ‹Ž—”‡ ‘ –Š‡ ’ƒ”– ‘ˆ –Š‡ ƒ••‡••‡‡ –‘ ϐ‹Ž‡ ”‡•’‘•‡ –‘
notice issued u/s 144:Š‡”‡–Š‡ƒ••‡••‡‡ˆƒ‹Ž•–‘ϐ‹Ž‡”‡•’‘•‡–‘–Š‡‘–‹…‡™‹–Š‹–Š‡–‹‡
•’‡…‹ϐ‹‡†–Š‡”‡‹‘”™‹–Š‹–Š‡‡š–‡†‡†–‹‡ǡ‹ˆƒ›ǡ–Š‡ Šƒ•–‘‹–‹ƒ–‡•—…Šˆƒ‹Ž—”‡–‘–Š‡
ƒ••‡••‡–—‹–Ǥ
ȋš‹˜Ȍ Making of draft assessment order by the Assessment Unit:Š‡ƒ••‡••‡–—‹–Šƒ•–‘ǡƒˆ–‡”
–ƒ‹‰‹–‘ƒ……‘—–ƒŽŽ–Š‡”‡Ž‡˜ƒ–ƒ–‡”‹ƒŽƒ˜ƒ‹Žƒ„Ž‡‘–Š‡”‡…‘”†‘”ǡ‹ƒ…ƒ•‡™Š‡”‡‹–‹ƒ–‹‘
ˆ‘”ˆƒ‹Ž—”‡–‘”‡•’‘†–‘‘–‹…‡‹•”‡…‡‹˜‡†ˆ”‘–Š‡ ǡƒ‡‹™”‹–‹‰ǡƒ†”ƒˆ–ƒ••‡••‡–
‘”†‡”–‘–Š‡„‡•–‘ˆ‹–•Œ—†‰‡–ǡ‡‹–Š‡”ƒ……‡’–‹‰–Š‡‹…‘‡‘”•—’ƒ›ƒ„Ž‡„›ǡ‘”•—”‡ˆ—†ƒ„Ž‡
–‘ǡ–Š‡ƒ••‡••‡‡ƒ•’‡”Š‹•”‡–—”‘”ƒ‹‰˜ƒ”‹ƒ–‹‘–‘–Š‡•ƒ‹†‹…‘‡‘”•—ǡƒ†•‡†ƒ…‘’›
‘ˆ•—…Š‘”†‡”–‘–Š‡ Ǥ
ȋš˜Ȍ Details of penalty proceedings to be mentioned in draft assessment orderǣŠ‹Ž‡ƒ‹‰
†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡ–Š‡ƒ••‡••‡–—‹–Šƒ•–‘ƒŽ•‘’”‘˜‹†‡†‡–ƒ‹Ž•‘ˆ–Š‡’‡ƒŽ–›’”‘…‡‡†‹‰•
–‘„‡‹‹–‹ƒ–‡†–Š‡”‡‹ǡ‹ˆƒ›Ǥ
ȋš˜‹Ȍ Examination of draft assessment order by the NFACǣ Šƒ•–‘‡šƒ‹‡–Š‡†”ƒˆ–ƒ••‡••‡–
‘”†‡”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”‹•ƒƒ‰‡‡–•–”ƒ–‡‰›•’‡…‹ϐ‹‡†„›–Š‡ǡ‹…Ž—†‹‰„›™ƒ›
‘ˆƒƒ—–‘ƒ–‡†‡šƒ‹ƒ–‹‘–‘‘Žǡ™Š‡”‡—’‘‹–ƒ›†‡…‹†‡–‘ǣ
Ȉ ϐ‹ƒŽ‹•‡ –Š‡ ƒ••‡••‡–ǡ ‹ …ƒ•‡ ‘ ˜ƒ”‹ƒ–‹‘ ’”‡Œ—†‹…‹ƒŽ –‘ –Š‡ ‹–‡”‡•– ‘ˆ ƒ••‡••‡‡ ‹•
’”‘’‘•‡†ǡƒ•’‡”–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”ƒ†•‡”˜‡ƒ…‘’›‘ˆ•—…Š‘”†‡”ƒ†‘–‹…‡ˆ‘”
‹‹–‹ƒ–‹‰ ’‡ƒŽ–› ’”‘…‡‡†‹‰•ǡ ‹ˆ ƒ›ǡ –‘ –Š‡ ƒ••‡••‡‡ǡ ƒŽ‘‰ ™‹–Š –Š‡ †‡ƒ† ‘–‹…‡ǡ
•’‡…‹ˆ›‹‰–Š‡•—’ƒ›ƒ„Ž‡„›ǡ‘””‡ˆ—†‘ˆƒ›ƒ‘—–†—‡–‘ǡ–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ
•—…Šƒ••‡••‡–Ǣ‘”
Ȉ ’”‘˜‹†‡ƒ‘’’‘”–—‹–›–‘–Š‡ƒ••‡••‡‡ǡ‹…ƒ•‡ƒ›˜ƒ”‹ƒ–‹‘’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–‘ˆ
ƒ••‡••‡‡ ‹• ’”‘’‘•‡†ǡ „› •‡”˜‹‰ ƒ ‘–‹…‡ …ƒŽŽ‹‰ —’‘ Š‹ –‘ •Š‘™Ǧ…ƒ—•‡ ƒ• –‘ ™Š› –Š‡
’”‘’‘•‡†˜ƒ”‹ƒ–‹‘•Š‘—Ž†‘–„‡ƒ†‡Ǣ‘”
Ȉ ƒ••‹‰–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”–‘ƒ”‡˜‹‡™—‹–‹ƒ›‘‡‡‰‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–
‡–”‡ǡ–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡ǡˆ‘”…‘†—…–‹‰”‡˜‹‡™‘ˆ•—…Š‘”†‡”Ǥ
ȋš˜‹‹Ȍ Review of the draft assessment order by Review Unit:Š‡”‡˜‹‡™—‹–™‘—Ž†…‘†—…–”‡˜‹‡™
‘ˆ–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡””‡ˆ‡””‡†–‘‹–„›–Š‡ ™Š‡”‡—’‘‹–ƒ›†‡…‹†‡–‘ǣ
Ȉ …‘…—”™‹–Š–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”ƒ†‹–‹ƒ–‡–Š‡ ƒ„‘—–•—…Š…‘…—””‡…‡Ǣ‘”
Ȉ •—‰‰‡•– •—…Š ˜ƒ”‹ƒ–‹‘ǡ ƒ• ‹– ƒ› †‡‡ ϐ‹–ǡ ‹ –Š‡ †”ƒˆ– ƒ••‡••‡– ‘”†‡” ƒ† •‡† ‹–•
•—‰‰‡•–‹‘•–‘–Š‡ Ǥ
ȋš˜‹‹‹Ȍ Procedure to be followed by NFAC on receiving concurrence from Review Unit:Š‡ ǡ
—’‘”‡…‡‹˜‹‰–Š‡…‘…—””‡…‡‘ˆ–Š‡”‡˜‹‡™—‹–ǡŠƒ•–‘ˆ‘ŽŽ‘™–Š‡’”‘…‡†—”‡Žƒ‹††‘™‹•—„Ǧ
…Žƒ—•‡ȋƒȌ‘”ȋ„Ȍ‘ˆ…Žƒ—•‡ȋš˜‹ȌǤ
ȋš‹šȌ Procedure to be followed by NFAC on receiving suggestion for variations from Review Unit:
’‘”‡…‡‹˜‹‰•—‰‰‡•–‹‘•ˆ‘”˜ƒ”‹ƒ–‹‘ˆ”‘–Š‡”‡˜‹‡™—‹–ǡ–Š‡ Šƒ•–‘ƒ••‹‰–Š‡…ƒ•‡–‘
ƒƒ••‡••‡–—‹–ǡ‘–Š‡”–Šƒ–Š‡ƒ••‡••‡–—‹–™Š‹…ŠŠƒ•ƒ†‡–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡ
–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡Ǥ
ȋššȌ Assessment Unit to send Final draft assessment order to NFAC: ˆ–‡” …‘•‹†‡”‹‰ –Š‡
˜ƒ”‹ƒ–‹‘••—‰‰‡•–‡†„›–Š‡”‡˜‹‡™—‹–ǡ–Š‡ƒ••‡••‡–—‹–Šƒ•–‘•‡†–Š‡ϐ‹ƒŽ†”ƒˆ–ƒ••‡••‡–
‘”†‡”–‘–Š‡ Ǥ
ȋšš‹Ȍ P”‘…‡†—”‡–‘„‡ˆ‘ŽŽ‘™‡†„› ‘”‡…‡‹˜‹‰ϐ‹ƒŽ†”ƒˆ–ƒ••‡••‡–‘”†‡”ǣ’‘”‡…‡‹˜‹‰
–Š‡ϐ‹ƒŽ†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡ–Š‡ Šƒ•–‘ˆ‘ŽŽ‘™–Š‡’”‘…‡†—”‡Žƒ‹††‘™‹•—„Ǧ…Žƒ—•‡ȋƒȌ
‘”ȋ„Ȍ‘ˆ…Žƒ—•‡ȋš˜‹ȌǤ
ȋšš‹‹Ȍ Furnishing of response by the assessee to show cause notice: Š‡ ƒ••‡••‡‡ ƒ›ǡ ‹ ƒ …ƒ•‡
™Š‡”‡ •Š‘™Ǧ…ƒ—•‡ ‘–‹…‡ Šƒ• „‡‡ •‡”˜‡† —’‘ Š‹ǡ ˆ—”‹•Š Š‹• ”‡•’‘•‡ –‘ –Š‡   ‘ ‘”
„‡ˆ‘”‡–Š‡†ƒ–‡ƒ†–‹‡•’‡…‹ϐ‹‡†‹–Š‡‘–‹…‡‘”™‹–Š‹–Š‡‡š–‡†‡†–‹‡ǡ‹ˆƒ›Ǥ
ͷ͹ͺ Lesson 10 Ȉ EP-TL

Clause Provision
ȋšš‹‹‹Ȍ Procedure on receipt / non-receipt of response from the assessee: Š‡”‡‘”‡•’‘•‡–‘–Š‡
•Š‘™Ǧ…ƒ—•‡‘–‹…‡‹•”‡…‡‹˜‡†Ȃ•—…Šƒ…ƒ•‡ǡ–Š‡ Šƒ•–‘Ǧ

Ȉ ‹ƒ…ƒ•‡™Š‡”‡–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”‘”–Š‡ϐ‹ƒŽ†”ƒˆ–ƒ••‡••‡–‘”†‡”‹•‹”‡•’‡…–
‘ˆ ƒ ‡Ž‹‰‹„Ž‡ ƒ••‡••‡‡ ƒ† ’”‘’‘•‡• –‘ ƒ‡ ƒ› ˜ƒ”‹ƒ–‹‘ ™Š‹…Š ‹• ’”‡Œ—†‹…‹ƒŽ –‘ –Š‡
‹–‡”‡•– ‘ˆ •ƒ‹† ƒ••‡••‡‡ǡ ˆ‘”™ƒ”† –Š‡ †”ƒˆ– ƒ••‡••‡– ‘”†‡” ‘” ϐ‹ƒŽ †”ƒˆ– ƒ••‡••‡–
‘”†‡”–‘•—…Šƒ••‡••‡‡Ǣ‘”
Ȉ ‹ƒ›‘–Š‡”…ƒ•‡ǡϐ‹ƒŽ‹•‡–Š‡ƒ••‡••‡–ƒ•’‡”–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”‘”–Š‡ϐ‹ƒŽ
†”ƒˆ– ƒ••‡••‡– ‘”†‡” ƒ† •‡”˜‡ ƒ …‘’› ‘ˆ •—…Š ‘”†‡” ƒ† ‘–‹…‡ ˆ‘” ‹‹–‹ƒ–‹‰ ’‡ƒŽ–›
’”‘…‡‡†‹‰•ǡ ‹ˆ ƒ›ǡ –‘ –Š‡ ƒ••‡••‡‡ǡ ƒŽ‘‰ ™‹–Š –Š‡ †‡ƒ† ‘–‹…‡ǡ •’‡…‹ˆ›‹‰ –Š‡ •—
’ƒ›ƒ„Ž‡„›ǡ‘””‡ˆ—†‘ˆƒ›ƒ‘—–†—‡–‘ǡ–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ•—…Šƒ••‡••‡–Ǣ
Ȉ  ƒ› ‘–Š‡” …ƒ•‡ǡ –Š‡   Šƒ• –‘ •‡† –Š‡ ”‡•’‘•‡ ”‡…‡‹˜‡† ˆ”‘ –Š‡ ƒ••‡••‡‡ –‘ –Š‡
ƒ••‡••‡–—‹–Ǥ
ȋšš‹˜Ȍ Assessment Unit to make revised draft assessment order: ˆ–‡” –ƒ‹‰ ‹–‘ ƒ……‘—– –Š‡
”‡•’‘•‡ˆ—”‹•Š‡†„›–Š‡ƒ••‡••‡‡ǡ–Š‡ƒ••‡••‡–—‹–Šƒ•–‘ƒ‡ƒ”‡˜‹•‡††”ƒˆ–ƒ••‡••‡–
‘”†‡”ƒ†•‡†‹––‘–Š‡ Ǥ
ȋšš˜Ȍ Procedure on receipt of revised draft assessment order by NFAC:’‘”‡…‡‹˜‹‰–Š‡”‡˜‹•‡†
†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡ–Š‡ Šƒ•–‘Ȃ

Ȉ ‹…ƒ•‡–Š‡˜ƒ”‹ƒ–‹‘•’”‘’‘•‡†‹–Š‡”‡˜‹•‡††”ƒˆ–ƒ••‡••‡–‘”†‡”ƒ”‡‘–’”‡Œ—†‹…‹ƒŽ–‘
–Š‡‹–‡”‡•–‘ˆ–Š‡ƒ••‡••‡‡‹…‘’ƒ”‹•‘–‘–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”‘”–Š‡ϐ‹ƒŽ†”ƒˆ–
ƒ••‡••‡–‘”†‡”ǡƒ†Ȅ
ȋƒȌ‹…ƒ•‡–Š‡”‡˜‹•‡††”ƒˆ–ƒ••‡••‡–‘”†‡”‹•‹”‡•’‡…–‘ˆƒ‡Ž‹‰‹„Ž‡ƒ••‡••‡‡ƒ†
–Š‡”‡ ‹• ƒ› ˜ƒ”‹ƒ–‹‘ ’”‡Œ—†‹…‹ƒŽ –‘ –Š‡ ‹–‡”‡•– ‘ˆ –Š‡ ƒ••‡••‡‡ ’”‘’‘•‡† ‹ †”ƒˆ–
ƒ••‡••‡–‘”†‡”‘”–Š‡ϐ‹ƒŽ†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡˆ‘”™ƒ”†–Š‡•ƒ‹†”‡˜‹•‡††”ƒˆ–
ƒ••‡••‡–‘”†‡”–‘•—…Šƒ••‡••‡‡Ǣ
ȋ„Ȍ‹ƒ›‘–Š‡”…ƒ•‡ǡϐ‹ƒŽ‹•‡–Š‡ƒ••‡••‡–ƒ•’‡”–Š‡”‡˜‹•‡††”ƒˆ–ƒ••‡••‡–‘”†‡”
ƒ†•‡”˜‡ƒ…‘’›‘ˆ•—…Š‘”†‡”ƒ†‘–‹…‡ˆ‘”‹‹–‹ƒ–‹‰’‡ƒŽ–›’”‘…‡‡†‹‰•ǡ‹ˆƒ›ǡ–‘
–Š‡ƒ••‡••‡‡ǡƒŽ‘‰™‹–Š–Š‡†‡ƒ†‘–‹…‡ǡ•’‡…‹ˆ›‹‰–Š‡•—’ƒ›ƒ„Ž‡„›ǡ‘””‡ˆ—†
‘ˆƒ›ƒ‘—–†—‡–‘ǡ–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ•—…Šƒ••‡••‡–Ǣ
Ȉ ‹…ƒ•‡–Š‡˜ƒ”‹ƒ–‹‘•’”‘’‘•‡†‹–Š‡”‡˜‹•‡††”ƒˆ–ƒ••‡••‡–‘”†‡”ƒ”‡’”‡Œ—†‹…‹ƒŽ–‘–Š‡
‹–‡”‡•– ‘ˆ –Š‡ ƒ••‡••‡‡ ‹ …‘’ƒ”‹•‘ –‘ –Š‡ †”ƒˆ– ƒ••‡••‡– ‘”†‡” ‘” –Š‡ ϐ‹ƒŽ †”ƒˆ–
ƒ••‡••‡–‘”†‡”ǡ’”‘˜‹†‡ƒ‘’’‘”–—‹–›–‘–Š‡ƒ••‡••‡‡ǡ„›•‡”˜‹‰ƒ‘–‹…‡…ƒŽŽ‹‰—’‘
Š‹–‘•Š‘™Ǧ…ƒ—•‡ƒ•–‘™Š›–Š‡’”‘’‘•‡†˜ƒ”‹ƒ–‹‘•Š‘—Ž†‘–„‡ƒ†‡Ǥ
 •—…Š …ƒ•‡ǡ –Š‡ ’”‘…‡†—”‡ Žƒ‹† †‘™ ‹ Žƒ—•‡• ȋšš‹‹‹Ȍǡ ȋšš‹˜Ȍ ƒ† ȋšš˜Ȍ ™‘—Ž† ƒ’’Ž›
mutatis mutandis–‘•—…Š‘–‹…‡”‡ˆ‡””‡†–‘ƒ„‘˜‡ǤȏŽƒ—•‡ȋšš˜‹ȌȐǤ
ȋšš˜‹Ȍ Ž‹‰‹„Ž‡ƒ••‡••‡‡ϐ‹Ž‡Š‹•ƒ……‡’–ƒ…‡‘ˆ–Š‡˜ƒ”‹ƒ–‹‘•–‘–Š‡ ǣŠ‡ƒ••‡••‡‡Šƒ•–‘ϐ‹Ž‡Š‹•
ƒ……‡’–ƒ…‡–‘–Š‡ ™‹–Š”‡•’‡…––‘ƒ›˜ƒ”‹ƒ–‹‘’”‘’‘•‡†‹†”ƒˆ–ƒ••‡••‡–‘”†‡”‘”–Š‡
ϐ‹ƒŽƒ••‡••‡–‘”†‡”™‹–Š‹–Š‡’‡”‹‘†‘ˆ͵Ͳ†ƒ›•‘ˆ–Š‡”‡…‡‹’–‘ˆ–Š‡†”ƒˆ–‘”†‡”ƒ••’‡…‹ϐ‹‡†
—†‡”•‡…–‹‘ͳͶͶȋʹȌǤ

ȋšš˜‹‹Ȍ Finalisation of assessment by NFAC upon receipt of acceptance from eligible assessee or
where no objections are received from eligible assessee: ’‘”‡…‡‹’–‘ˆ–Š‡ƒ……‡’–ƒ…‡ˆ”‘
–Š‡‡Ž‹‰‹„Ž‡ƒ••‡••‡‡‘”‹ˆ‘‘„Œ‡…–‹‘•ƒ”‡”‡…‡‹˜‡†ˆ”‘–Š‡‡Ž‹‰‹„Ž‡ƒ••‡••‡‡™‹–Š‹–Š‡͵Ͳ†ƒ›•
’‡”‹‘†ƒ••’‡…‹ϐ‹‡†—†‡”•‡…–‹‘ͳͶͶȋʹȌǡ–Š‡ Šƒ•–‘’”‘…‡‡†–‘ϐ‹ƒŽ‹•‡–Š‡ƒ••‡••‡–
™‹–Š‹–Š‡–‹‡ƒŽŽ‘™‡†—†‡”•‡…–‹‘ͳͶͶȋͶȌǡ‹Ǥ‡Ǥǡͳ‘–Šˆ”‘–Š‡‡†‘ˆ‘–Š‹™Š‹…Š–Š‡
ƒ……‡’–ƒ…‡‹•”‡…‡‹˜‡†‘”’‡”‹‘†‘ˆ͵Ͳ†ƒ›•ˆ‘”ϐ‹Ž‹‰‘„Œ‡…–‹‘‡š’‹”‡•ǤŠ‡ Šƒ•–‘•‡”˜‡ƒ
…‘’›‘ˆ•—…Š‘”†‡”ƒ†‘–‹…‡ˆ‘”‹‹–‹ƒ–‹‰’‡ƒŽ–›’”‘…‡‡†‹‰•ǡ‹ˆƒ›ǡ–‘–Š‡ƒ••‡••‡‡ǡƒŽ‘‰™‹–Š
–Š‡†‡ƒ†‘–‹…‡ǡ•’‡…‹ˆ›‹‰–Š‡•—’ƒ›ƒ„Ž‡„›ǡ‘””‡ˆ—†‘ˆƒ›ƒ‘—–†—‡–‘ǡ–Š‡ƒ••‡••‡‡
‘–Š‡„ƒ•‹•‘ˆ•—…Šƒ••‡••‡–Ǥ
 Lesson 10 ȈAssessment, Appeals & Revision ͷ͹ͻ

Clause Provision
ȋšš˜‹‹‹Ȍ NFAC to forward directions of DRP to Assessment Unit:Š‡”‡–Š‡‡Ž‹‰‹„Ž‡ƒ••‡••‡‡ϐ‹Ž‡•Š‹•
‘„Œ‡…–‹‘• ™‹–Š –Š‡ ‹•’—–‡ ‡•‘Ž—–‹‘ ƒ‡Žǡ –Š‡   Šƒ• –‘ǡ —’‘ ”‡…‡‹’– ‘ˆ –Š‡ †‹”‡…–‹‘•
‹••—‡† „› –Š‡ ‹•’—–‡ ‡•‘Ž—–‹‘ ƒ‡Ž —†‡” •‡…–‹‘ ͳͶͶȋͷȌǡ ˆ‘”™ƒ”† •—…Š †‹”‡…–‹‘• –‘ –Š‡
…‘…‡”‡†••‡••‡–‹–Ǥ
ȋšš‹šȌ Assessment Unit to prepare a draft assessment order:…‘ˆ‘”‹–›‘ˆ–Š‡†‹”‡…–‹‘•‹••—‡†
„›–Š‡—†‡”•‡…–‹‘ͳͶͶȋͷȌǡ–Š‡••‡••‡–‹–Šƒ•–‘’”‡’ƒ”‡ƒ†”ƒˆ–ƒ••‡••‡–‘”†‡”
‹ƒ……‘”†ƒ…‡™‹–Š•‡…–‹‘ͳͶͶȋͳ͵Ȍƒ†•‡†ƒ…‘’›‘ˆ•—…Š‘”†‡”–‘–Š‡ Ǥ
ȋšššȌ Finalisation of assessment by the NFAC:’‘”‡…‡‹’–‘ˆ–Š‡†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡ–Š‡ 
™‘—Ž† ϐ‹ƒŽ‹•‡ –Š‡ ƒ••‡••‡– ™‹–Š‹ –Š‡ –‹‡ ƒŽŽ‘™‡† —†‡” •‡…–‹‘ ͳͶͶȋͳ͵Ȍǡ ‹Ǥ‡Ǥǡ ™‹–Š‹ ͳ
‘–Šˆ”‘–Š‡‡†‘ˆ‘–Š‹™Š‹…Š†‹”‡…–‹‘‹•”‡…‡‹˜‡†ƒ†•‡”˜‡ƒ…‘’›‘ˆ•—…Š‘”†‡”ƒ†
‘–‹…‡ˆ‘”‹‹–‹ƒ–‹‰’‡ƒŽ–›’”‘…‡‡†‹‰•ǡ‹ˆƒ›ǡ–‘–Š‡ƒ••‡••‡‡ǡƒŽ‘‰™‹–Š–Š‡†‡ƒ†‘–‹…‡ǡ
•’‡…‹ˆ›‹‰–Š‡•—’ƒ›ƒ„Ž‡„›ǡ‘””‡ˆ—†‘ˆƒ›ƒ‘—–†—‡–‘ǡ–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ•—…Š
ƒ••‡••‡–Ǥ
ȋššš‹Ȍ Transfer of electronic records of the case to the jurisdictional AO after completion of
assessment:ˆ–‡”…‘’Ž‡–‹‘‘ˆƒ••‡••‡–ǡ–Š‡ •Š‘—Ž†–”ƒ•ˆ‡”ƒŽŽ–Š‡‡Ž‡…–”‘‹…”‡…‘”†•
‘ˆ–Š‡…ƒ•‡–‘–Š‡••‡••‹‰ˆϐ‹…‡”Šƒ˜‹‰Œ—”‹•†‹…–‹‘‘˜‡”–Š‡•ƒ‹†…ƒ•‡ˆ‘”•—…Šƒ…–‹‘ƒ•ƒ›„‡
”‡“—‹”‡†—†‡”–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǤ
NFAC/RFACs/AUs/VUs/Rus to be set up for the purpose of faceless assessment [Section 144B(3)]- ‘”–Š‡
’—”’‘•‡‘ˆˆƒ…‡Ž‡••ƒ••‡••‡–ǡ–Š‡ǡƒ›•‡–—’–Š‡ˆ‘ŽŽ‘™‹‰‡–‡”•ƒ†‹–•ƒ†•’‡…‹ˆ›–Š‡‹””‡•’‡…–‹˜‡
Œ—”‹•†‹…–‹‘ǣ
ƒ–‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–
‡–‡”ȋ Ȍ
‡‰‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–
‡–‡”ȋ Ȍ
••‡••‡–‹–•ȋ•Ȍ
‡”‹ϐ‹…ƒ–‹‘‹–•ȋ•Ȍ
‡…Š‹…ƒŽ‹–•ȋ•Ȍ
‘ˆƒ…‹Ž‹–ƒ–‡–Š‡…‘†—…–‘ˆˆƒ…‡Ž‡••ƒ••‡••‡–’”‘…‡‡†‹‰•‹ƒ…‡–”ƒŽ‹•‡†
ƒ‡”ǡ   –‘ „‡ •‡– —’ǡ ™Š‹…Š •ŠƒŽŽ „‡ ˜‡•–‡† ™‹–Š –Š‡ Œ—”‹•†‹…–‹‘ –‘
ƒ‡ˆƒ…‡Ž‡••ƒ••‡••‡–Ǥ
‘ ˆƒ…‹Ž‹–ƒ–‡ –Š‡ …‘†—…– ‘ˆ ˆƒ…‡Ž‡•• ƒ••‡••‡– ’”‘…‡‡†‹‰• ‹ –Š‡ …ƒ†”‡
…‘–”‘ŽŽ‹‰ ”‡‰‹‘ ‘ˆ ƒ ”‹…‹’ƒŽ Š‹‡ˆ ‘‹••‹‘‡”ǡ  • –‘ „‡ •‡– —’ǡ
™Š‹…Š•ŠƒŽŽ„‡˜‡•–‡†™‹–Š–Š‡Œ—”‹•†‹…–‹‘–‘ƒ‡ˆƒ…‡Ž‡••ƒ••‡••‡–Ǥ
‘ˆƒ…‹Ž‹–ƒ–‡–Š‡…‘†—…–‘ˆˆƒ…‡Ž‡••ƒ••‡••‡–ǡ••‡••‡–‹–•ǡƒ•†‡‡‡†
‡…‡••ƒ”›ǡ ƒ› „‡ •‡– —’ –‘ ’‡”ˆ‘” –Š‡ ˆ—…–‹‘ ‘ˆ ƒ‹‰ ƒ••‡••‡–ǡ
™Š‹…Š‹…Ž—†‡•
Ȉ ‹†‡–‹ϐ‹…ƒ–‹‘‘ˆ’‘‹–•‘”‹••—‡•ƒ–‡”‹ƒŽˆ‘”–Š‡†‡–‡”‹ƒ–‹‘‘ˆƒ›
Ž‹ƒ„‹Ž‹–›ȋ‹…Ž—†‹‰”‡ˆ—†Ȍ—†‡”–Š‡…–ǡ
Ȉ •‡‡‹‰‹ˆ‘”ƒ–‹‘‘”…Žƒ”‹ϐ‹…ƒ–‹‘‘’‘‹–•‘”‹••—‡••‘‹†‡–‹ϐ‹‡†ǡ
Ȉ ƒƒŽ›•‹•‘ˆ–Š‡ƒ–‡”‹ƒŽˆ—”‹•Š‡†„›–Š‡ƒ••‡••‡‡‘”ƒ›‘–Š‡”’‡”•‘ǡƒ†
Ȉ •—…Š‘–Š‡”ˆ—…–‹‘•ƒ•ƒ›„‡”‡“—‹”‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆƒ‹‰
ˆƒ…‡Ž‡••ƒ••‡••‡–Ǥ
‘ˆƒ…‹Ž‹–ƒ–‡–Š‡…‘†—…–‘ˆˆƒ…‡Ž‡••ƒ••‡••‡–ǡ‡”‹ϐ‹…ƒ–‹‘‹–•ȋ•Ȍƒ•
†‡‡‡† ‡…‡••ƒ”›ǡ ƒ› „‡ •‡– —’ –‘ ’‡”ˆ‘” –Š‡ ˆ—…–‹‘ ‘ˆ ˜‡”‹ϐ‹…ƒ–‹‘ǡ
™Š‹…Š‹…Ž—†‡•
Ȉ ‡“—‹”›ǡ …”‘•• ˜‡”‹ϐ‹…ƒ–‹‘ǡ ‡šƒ‹ƒ–‹‘ ‘ˆ „‘‘• ‘ˆ ƒ……‘—–ǡ
‡šƒ‹ƒ–‹‘‘ˆ™‹–‡••‡•ƒ†”‡…‘”†‹‰‘ˆ•–ƒ–‡‡–•ǡƒ†
Ȉ •—…Š‘–Š‡”ˆ—…–‹‘•ƒ•ƒ›„‡”‡“—‹”‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ˜‡”‹ϐ‹…ƒ–‹‘Ǥ
‘ ˆƒ…‹Ž‹–ƒ–‡ –Š‡ …‘†—…– ‘ˆ ˆƒ…‡Ž‡•• ƒ••‡••‡–ǡ ‡…Š‹…ƒŽ ‹–• ȋ•Ȍ ƒ•
†‡‡‡† ‡…‡••ƒ”›ǡ ƒ› „‡ •‡– —’ –‘ ’‡”ˆ‘” –Š‡ ˆ—…–‹‘ ‘ˆ ’”‘˜‹†‹‰
–‡…Š‹…ƒŽ ƒ••‹•–ƒ…‡ ™Š‹…Š ‹…Ž—†‡• ƒ› ƒ••‹•–ƒ…‡ ‘” ƒ†˜‹…‡ ‘ Ž‡‰ƒŽǡ
ƒ……‘—–‹‰ǡ ˆ‘”‡•‹…ǡ ‹ˆ‘”ƒ–‹‘ –‡…Š‘Ž‘‰›ǡ ˜ƒŽ—ƒ–‹‘ǡ –”ƒ•ˆ‡” ’”‹…‹‰ǡ
†ƒ–ƒ ƒƒŽ›–‹…•ǡ ƒƒ‰‡‡– ‘” ƒ› ‘–Š‡” –‡…Š‹…ƒŽ ƒ––‡” ™Š‹…Š ƒ› „‡
”‡“—‹”‡†‹ƒ’ƒ”–‹…—Žƒ”…ƒ•‡‘”ƒ…Žƒ••‘ˆ…ƒ•‡•ǡ—†‡”–Š‹••‡…–‹‘Ǥ
 ͷͺͲ Lesson 10 Ȉ EP-TL

‡˜‹‡™‹–•ȋ•Ȍ ‘ ˆƒ…‹Ž‹–ƒ–‡ –Š‡ …‘†—…– ‘ˆ ˆƒ…‡Ž‡•• ƒ••‡••‡–ǡ ‡˜‹‡™ ‹–• ȋ•Ȍ ƒ•
†‡‡‡†‡…‡••ƒ”›ǡƒ›„‡•‡–—’–‘’‡”ˆ‘”–Š‡ˆ—…–‹‘‘ˆ”‡˜‹‡™‘ˆ–Š‡
†”ƒˆ–ƒ••‡••‡–‘”†‡”ǡ™Š‹…Š‹…Ž—†‡•…Š‡…‹‰Ǧ
Ȉ ™Š‡–Š‡” –Š‡ ”‡Ž‡˜ƒ– ƒ† ƒ–‡”‹ƒŽ ‡˜‹†‡…‡ Šƒ• „‡‡ „”‘—‰Š– ‘
”‡…‘”†ǡ
Ȉ ™Š‡–Š‡”–Š‡”‡Ž‡˜ƒ–’‘‹–•‘ˆˆƒ…–ƒ†Žƒ™Šƒ˜‡„‡‡†—Ž›‹…‘”’‘”ƒ–‡†
‹–Š‡†”ƒˆ–‘”†‡”ǡ
Ȉ ™Š‡–Š‡”–Š‡‹••—‡•‘™Š‹…Šƒ††‹–‹‘‘”†‹•ƒŽŽ‘™ƒ…‡•Š‘—Ž†„‡ƒ†‡
Šƒ˜‡„‡‡†‹•…—••‡†‹–Š‡†”ƒˆ–‘”†‡”ǡ
Ȉ ™Š‡–Š‡” –Š‡ ƒ’’Ž‹…ƒ„Ž‡ Œ—†‹…‹ƒŽ †‡…‹•‹‘• Šƒ˜‡ „‡‡ …‘•‹†‡”‡† ƒ†
†‡ƒŽ–™‹–Š‹–Š‡†”ƒˆ–‘”†‡”ǡ
Ȉ ˆ‘”ƒ”‹–Š‡–‹…ƒŽ…‘””‡…–‡••‘ˆ˜ƒ”‹ƒ–‹‘•’”‘’‘•‡†ǡ‹ˆƒ›ǡƒ†
Ȉ •—…Š‘–Š‡”ˆ—…–‹‘•ƒ•ƒ›„‡”‡“—‹”‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ”‡˜‹‡™Ǥ

INCOME ESCAPING ASSESSMENT [SECTION 147]

ˆƒ›‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšǡ‹–Š‡…ƒ•‡‘ˆƒƒ••‡••‡‡ǡŠƒ•‡•…ƒ’‡†ƒ••‡••‡–ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”ǡ–Š‡
••‡••‹‰ˆϐ‹…‡”ƒ›ǡ•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•ͳͶͺ–‘ͳͷ͵ǡƒ••‡••‘””‡ƒ••‡•••—…Š‹…‘‡‘””‡…‘’—–‡
–Š‡Ž‘••‘”–Š‡†‡’”‡…‹ƒ–‹‘ƒŽŽ‘™ƒ…‡‘”ƒ›‘–Š‡”ƒŽŽ‘™ƒ…‡‘”†‡†—…–‹‘ˆ‘”•—…Šƒ••‡••‡–›‡ƒ”ȋŠ‡”‡ƒˆ–‡”‹
–Š‹••‡…–‹‘ƒ†‹•‡…–‹‘•ͳͶͺ–‘ͳͷ͵”‡ˆ‡””‡†–‘ƒ•–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”ȌǤ
š’Žƒƒ–‹‘Ǧ ‘”–Š‡’—”’‘•‡‘ˆƒ••‡••‡–‘””‡ƒ••‡••‡–‘””‡Ǧ…‘’—–ƒ–‹‘—†‡”–Š‹••‡…–‹‘ǡ–Š‡••‡••‹‰
ˆϐ‹…‡”ƒ›ƒ••‡••‘””‡ƒ••‡••–Š‡‹…‘‡‹”‡•’‡…–‘ˆƒ›‹••—‡ǡ™Š‹…ŠŠƒ•‡•…ƒ’‡†ƒ••‡••‡–ǡƒ†•—…Š‹••—‡
…‘‡•–‘Š‹•‘–‹…‡•—„•‡“—‡–Ž›‹–Š‡…‘—”•‡‘ˆ–Š‡’”‘…‡‡†‹‰•—†‡”–Š‹••‡…–‹‘ǡ‹””‡•’‡…–‹˜‡‘ˆ–Š‡ˆƒ…––Šƒ––Š‡
’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͶͺŠƒ˜‡‘–„‡‡…‘’Ž‹‡†™‹–ŠǤ

Issue of notice where income has Escaped Assessment [Section 148]

‡ˆ‘”‡ƒ‹‰–Š‡ƒ••‡••‡–ǡ”‡ƒ••‡••‡–‘””‡Ǧ…‘’—–ƒ–‹‘—†‡”•‡…–‹‘ͳͶ͹ǡƒ†•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ
•‡…–‹‘ͳͶͺǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ•‡”˜‡‘–Š‡ƒ••‡••‡‡ƒ‘–‹…‡ǡƒŽ‘‰™‹–Šƒ…‘’›‘ˆ–Š‡‘”†‡”’ƒ••‡†ǡ‹ˆ
”‡“—‹”‡†ǡ—†‡”…Žƒ—•‡ȋ†Ȍ‘ˆ•‡…–‹‘ͳͶͺǡ”‡“—‹”‹‰Š‹–‘ˆ—”‹•Š™‹–Š‹•—…Š’‡”‹‘†ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹•—…Š
‘–‹…‡ǡƒ”‡–—”‘ˆŠ‹•‹…‘‡‘”–Š‡‹…‘‡‘ˆƒ›‘–Š‡”’‡”•‘‹”‡•’‡…–‘ˆ™Š‹…ŠŠ‡‹•ƒ••‡••ƒ„Ž‡—†‡”–Š‹•…–
†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”…‘””‡•’‘†‹‰–‘–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”ǡ‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†˜‡”‹ϐ‹‡†‹–Š‡
’”‡•…”‹„‡†ƒ‡”ƒ†•‡––‹‰ˆ‘”–Š•—…Š‘–Š‡”’ƒ”–‹…—Žƒ”•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǣƒ†–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–
•ŠƒŽŽǡ•‘ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›ƒ……‘”†‹‰Ž›ƒ•‹ˆ•—…Š”‡–—”™‡”‡ƒ”‡–—””‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†—†‡”•‡…–‹‘ͳ͵ͻǣ
”‘˜‹†‡†–Šƒ–‘‘–‹…‡—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡‹••—‡†—Ž‡••–Š‡”‡‹•‹ˆ‘”ƒ–‹‘™‹–Š–Š‡••‡••‹‰ˆϐ‹…‡”
™Š‹…Š•—‰‰‡•–•–Šƒ––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšŠƒ•‡•…ƒ’‡†ƒ••‡••‡–‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”–Š‡”‡Ž‡˜ƒ–
ƒ••‡••‡–›‡ƒ”ƒ†–Š‡••‡••‹‰ˆϐ‹…‡”Šƒ•‘„–ƒ‹‡†’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ–Š‡•’‡…‹ϐ‹‡†ƒ—–Š‘”‹–›–‘‹••—‡•—…Š‘–‹…‡Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ƒ†•‡…–‹‘ͳͶͺǡ–Š‡‹ˆ‘”ƒ–‹‘™‹–Š–Š‡••‡••‹‰ˆϐ‹…‡”™Š‹…Š•—‰‰‡•–•–Šƒ–
–Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšŠƒ•‡•…ƒ’‡†ƒ••‡••‡–‡ƒ•ǣ
ȋ‹Ȍ ƒ›‹ˆ‘”ƒ–‹‘ϐŽƒ‰‰‡†‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡
”‹•ƒƒ‰‡‡–•–”ƒ–‡‰›ˆ‘”—Žƒ–‡†„›–Š‡‘ƒ”†ˆ”‘–‹‡–‘–‹‡Ǣ
ȋ‹‹Ȍ ƒ›ϐ‹ƒŽ‘„Œ‡…–‹‘”ƒ‹•‡†„›–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”
‡‡”ƒŽ‘ˆ†‹ƒ–‘–Š‡‡ˆˆ‡…––Šƒ––Š‡ƒ••‡••‡–‹
–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”Šƒ•‘–„‡‡ƒ†‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‹•…–Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ™Š‡”‡ǡȄ
ȋ‹Ȍ ƒ•‡ƒ”…Š‹•‹‹–‹ƒ–‡†—†‡”•‡…–‹‘ͳ͵ʹ‘”„‘‘•‘ˆƒ……‘—–ǡ‘–Š‡”†‘…—‡–•‘”ƒ›ƒ••‡–•ƒ”‡”‡“—‹•‹–‹‘‡†
—†‡”•‡…–‹‘ͳ͵ʹǡ‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡Ǣ‘”
ȋ‹‹Ȍ ƒ •—”˜‡› ‹• …‘†—…–‡† —†‡” •‡…–‹‘ ͳ͵͵ǡ ‘–Š‡” –Šƒ —†‡” •—„Ǧ•‡…–‹‘ ȋʹȌ ‘” •—„Ǧ•‡…–‹‘ ȋͷȌ ‘ˆ –Šƒ–
•‡…–‹‘ǡ‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡Ǣ‘”
 Lesson 10 ȈAssessment, Appeals & Revision ͷͺͳ

ȋ‹‹‹Ȍ –Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡ
–Šƒ–ƒ›‘‡›ǡ„—ŽŽ‹‘ǡŒ‡™‡ŽŽ‡”›‘”‘–Š‡”˜ƒŽ—ƒ„Ž‡ƒ”–‹…Ž‡‘”–Š‹‰ǡ•‡‹œ‡†‘””‡“—‹•‹–‹‘‡†—†‡”•‡…–‹‘
ͳ͵ʹ‘”•‡…–‹‘ͳ͵ʹ‹…ƒ•‡‘ˆƒ›‘–Š‡”’‡”•‘‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǡ„‡Ž‘‰•–‘–Š‡ƒ••‡••‡‡Ǣ‘”
ȋ‹˜Ȍ –Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡ–Šƒ–
ƒ›„‘‘•‘ˆƒ……‘—–‘”†‘…—‡–•ǡ•‡‹œ‡†‘””‡“—‹•‹–‹‘‡†—†‡”•‡…–‹‘ͳ͵ʹ‘”•‡…–‹‘ͳ͵ʹ‹…ƒ•‡‘ˆƒ›
‘–Š‡” ’‡”•‘ ‘ ‘” ƒˆ–‡” –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲʹͳǡ ’‡”–ƒ‹• ‘” ’‡”–ƒ‹ –‘ǡ ‘” ƒ› ‹ˆ‘”ƒ–‹‘ …‘–ƒ‹‡†
–Š‡”‡‹ǡ”‡Žƒ–‡–‘ǡ–Š‡ƒ••‡••‡‡ǡ
–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡‹ˆ‘”ƒ–‹‘™Š‹…Š•—‰‰‡•–•–Šƒ––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšŠƒ•
‡•…ƒ’‡†ƒ••‡••‡–‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡ˆ‘”–Š‡–Š”‡‡ƒ••‡••‡–›‡ƒ”•‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ƒ••‡••‡–
›‡ƒ””‡Ž‡˜ƒ––‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š–Š‡•‡ƒ”…Š‹•‹‹–‹ƒ–‡†‘”„‘‘•‘ˆƒ……‘—–ǡ‘–Š‡”†‘…—‡–•‘”ƒ›
ƒ••‡–•ƒ”‡”‡“—‹•‹–‹‘‡†‘”•—”˜‡›‹•…‘†—…–‡†‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡‘”‘‡›ǡ„—ŽŽ‹‘ǡŒ‡™‡ŽŽ‡”›‘”‘–Š‡”
˜ƒŽ—ƒ„Ž‡ƒ”–‹…Ž‡‘”–Š‹‰‘”„‘‘•‘ˆƒ……‘—–‘”†‘…—‡–•ƒ”‡•‡‹œ‡†‘””‡“—‹•‹–‹‘‡†‹…ƒ•‡‘ˆƒ›‘–Š‡”’‡”•‘Ǥ
Conducting inquiry, providing opportunity before issue of notice under section 148 [Section 148A]
Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽǡ„‡ˆ‘”‡‹••—‹‰ƒ›‘–‹…‡—†‡”•‡…–‹‘ͳͶͺǣ
ȋƒȌ …‘†—…–ƒ›‡“—‹”›ǡ‹ˆ”‡“—‹”‡†ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ•’‡…‹ϐ‹‡†ƒ—–Š‘”‹–›ǡ™‹–Š”‡•’‡…––‘–Š‡‹ˆ‘”ƒ–‹‘
™Š‹…Š•—‰‰‡•–•–Šƒ––Š‡‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšŠƒ•‡•…ƒ’‡†ƒ••‡••‡–Ǣ
ȋ„Ȍ ’”‘˜‹†‡ ƒ ‘’’‘”–—‹–› ‘ˆ „‡‹‰ Š‡ƒ”† –‘ –Š‡ ƒ••‡••‡‡ǡ ™‹–Š –Š‡ ’”‹‘” ƒ’’”‘˜ƒŽ ‘ˆ •’‡…‹ϐ‹‡† ƒ—–Š‘”‹–›ǡ „›
•‡”˜‹‰—’‘Š‹ƒ‘–‹…‡–‘•Š‘™…ƒ—•‡™‹–Š‹•—…Š–‹‡ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡‘–‹…‡ǡ„‡‹‰‘–Ž‡••
–Šƒ•‡˜‡†ƒ›•ƒ†„—–‘–‡š…‡‡†‹‰–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Š‘–‹…‡‹•‹••—‡†ǡ‘”•—…Š–‹‡ǡ
ƒ•ƒ›„‡‡š–‡†‡†„›Š‹‘–Š‡„ƒ•‹•‘ˆƒƒ’’Ž‹…ƒ–‹‘‹–Š‹•„‡ŠƒŽˆǡƒ•–‘™Š›ƒ‘–‹…‡—†‡”•‡…–‹‘ͳͶͺ
•Š‘—Ž†‘–„‡‹••—‡†‘–Š‡„ƒ•‹•‘ˆ‹ˆ‘”ƒ–‹‘™Š‹…Š•—‰‰‡•–•–Šƒ–‹…‘‡…Šƒ”‰‡ƒ„Ž‡–‘–ƒšŠƒ•‡•…ƒ’‡†
ƒ••‡••‡–‹Š‹•…ƒ•‡ˆ‘”–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”ƒ†”‡•—Ž–•‘ˆ‡“—‹”›…‘†—…–‡†ǡ‹ˆƒ›ǡƒ•’‡”…Žƒ—•‡ȋƒȌǢ
ȋ…Ȍ …‘•‹†‡”–Š‡”‡’Ž›‘ˆƒ••‡••‡‡ˆ—”‹•Š‡†ǡ‹ˆƒ›ǡ‹”‡•’‘•‡–‘–Š‡•Š‘™Ǧ…ƒ—•‡‘–‹…‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ„ȌǢ
ȋ†Ȍ †‡…‹†‡ǡ‘–Š‡„ƒ•‹•‘ˆƒ–‡”‹ƒŽƒ˜ƒ‹Žƒ„Ž‡‘”‡…‘”†‹…Ž—†‹‰”‡’Ž›‘ˆ–Š‡ƒ••‡••‡‡ǡ™Š‡–Š‡”‘”‘–‹–‹•ƒϐ‹–
…ƒ•‡–‘‹••—‡ƒ‘–‹…‡—†‡”•‡…–‹‘ͳͶͺǡ„›’ƒ••‹‰ƒ‘”†‡”ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ•’‡…‹ϐ‹‡†ƒ—–Š‘”‹–›ǡ
™‹–Š‹‘‡‘–Šˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡”‡’Ž›”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ…Ȍ‹•”‡…‡‹˜‡†„›Š‹ǡ‘”
™Š‡”‡‘•—…Š”‡’Ž›‹•ˆ—”‹•Š‡†ǡ™‹–Š‹‘‡‘–Šˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–‹‡‘”‡š–‡†‡†
–‹‡ƒŽŽ‘™‡†–‘ˆ—”‹•Šƒ”‡’Ž›ƒ•’‡”…Žƒ—•‡ȋ„Ȍ‡š’‹”‡•ǣ
”‘˜‹†‡†–Šƒ––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž›‹ƒ…ƒ•‡™Š‡”‡ǡȄ
ȋƒȌ ƒ•‡ƒ”…Š‹•‹‹–‹ƒ–‡†—†‡”•‡…–‹‘ͳ͵ʹ‘”„‘‘•‘ˆƒ……‘—–ǡ‘–Š‡”†‘…—‡–•‘”ƒ›ƒ••‡–•ƒ”‡”‡“—‹•‹–‹‘‡†
—†‡”•‡…–‹‘ͳ͵ʹ‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͳǢ‘”
ȋ„Ȍ –Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”
–Šƒ–ƒ›‘‡›ǡ„—ŽŽ‹‘ǡŒ‡™‡ŽŽ‡”›‘”‘–Š‡”˜ƒŽ—ƒ„Ž‡ƒ”–‹…Ž‡‘”–Š‹‰ǡ•‡‹œ‡†‹ƒ•‡ƒ”…Š—†‡”•‡…–‹‘ͳ͵ʹ‘”
”‡“—‹•‹–‹‘‡† —†‡” •‡…–‹‘ ͳ͵ʹǡ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ› ‘–Š‡” ’‡”•‘ ‘ ‘” ƒˆ–‡” –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲʹͳǡ
„‡Ž‘‰•–‘–Š‡ƒ••‡••‡‡Ǣ‘”
ȋ…Ȍ –Š‡••‡••‹‰ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡ™‹–Š–Š‡’”‹‘”ƒ’’”‘˜ƒŽ‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”
–Šƒ–ƒ›„‘‘•‘ˆƒ……‘—–‘”†‘…—‡–•ǡ•‡‹œ‡†‹ƒ•‡ƒ”…Š—†‡”•‡…–‹‘ͳ͵ʹ‘””‡“—‹•‹–‹‘‡†—†‡”•‡…–‹‘
ͳ͵ʹǡ ‹ …ƒ•‡ ‘ˆ ƒ› ‘–Š‡” ’‡”•‘ ‘ ‘” ƒˆ–‡” –Š‡ ͳ•– †ƒ› ‘ˆ ’”‹Žǡ ʹͲʹͳǡ ’‡”–ƒ‹• ‘” ’‡”–ƒ‹ –‘ǡ ‘” ƒ›
‹ˆ‘”ƒ–‹‘…‘–ƒ‹‡†–Š‡”‡‹ǡ”‡Žƒ–‡–‘ǡ–Š‡ƒ••‡••‡‡Ǥ
š’Žƒƒ–‹‘ǣ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ•’‡…‹ϐ‹‡†ƒ—–Š‘”‹–›‡ƒ•–Š‡•’‡…‹ϐ‹‡†ƒ—–Š‘”‹–›”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͷͳǤ
Faceless Assessment of Income Escaping Assessment [Section 151A]
‡…–‹‘ͳͷͳŠƒ•„‡‡‹•‡”–‡†™‹–Š‡ˆˆ‡…–ˆ”‘ͳ•–‘˜‡„‡”ǡʹͲʹͲ„›–Š‡ƒšƒ–‹‘ƒ†–Š‡”ƒ™•ȋ‡Žƒšƒ–‹‘
ƒ†‡†‡–‘ˆ‡”–ƒ‹”‘˜‹•‹‘•Ȍ…–ǡʹͲʹͲǡ–‘’”‘˜‹†‡ˆ‘”ˆƒ…‡Ž‡••ƒ••‡••‡–‘ˆ‹…‘‡‡•…ƒ’‹‰ƒ••‡••‡–Ǥ
ƒ…‡Ž‡••••‡••‡–…Š‡‡ˆ‘”‹…‘‡‡•…ƒ’‹‰ƒ••‡••‡–ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ‘”–Š‡
’—”’‘•‡•‘ˆƒ••‡••‡–ǡ”‡ƒ••‡••‡–‘””‡Ǧ…‘’—–ƒ–‹‘—†‡”•‡…–‹‘ͳͶ͹‘”‹••—ƒ…‡‘ˆ‘–‹…‡—†‡”•‡…–‹‘
ͳͶͺ‘”•ƒ…–‹‘ˆ‘”‹••—‡‘ˆ•—…Š‘–‹…‡—†‡”•‡…–‹‘ͳͷͳǡ•‘ƒ•–‘‹’ƒ”–‰”‡ƒ–‡”‡ˆϐ‹…‹‡…›ǡ–”ƒ•’ƒ”‡…›ƒ†
ƒ……‘—–ƒ„‹Ž‹–›„›Ȅ
 ͷͺʹ Lesson 10 Ȉ EP-TL

ȋƒȌ ‡Ž‹‹ƒ–‹‰ –Š‡ ‹–‡”ˆƒ…‡ „‡–™‡‡ –Š‡ ‹…‘‡Ǧ–ƒš ƒ—–Š‘”‹–› ƒ† –Š‡ ƒ••‡••‡‡ ‘” ƒ› ‘–Š‡” ’‡”•‘ –‘ –Š‡
‡š–‡––‡…Š‘Ž‘‰‹…ƒŽŽ›ˆ‡ƒ•‹„Ž‡Ǣ
ȋ„Ȍ ‘’–‹‹•‹‰—–‹Ž‹•ƒ–‹‘‘ˆ–Š‡”‡•‘—”…‡•–Š”‘—‰Š‡…‘‘‹‡•‘ˆ•…ƒŽ‡ƒ†ˆ—…–‹‘ƒŽ•’‡…‹ƒŽ‹•ƒ–‹‘Ǣ
ȋ…Ȍ ‹–”‘†—…‹‰ƒ–‡ƒǦ„ƒ•‡†ƒ••‡••‡–ǡ”‡ƒ••‡••‡–ǡ”‡Ǧ…‘’—–ƒ–‹‘‘”‹••—ƒ…‡‘”•ƒ…–‹‘‘ˆ‘–‹…‡™‹–Š
†›ƒ‹…Œ—”‹•†‹…–‹‘Ǥ
ASSESSMENT IN CASE OF SEARCH OR REQUISITION [SECTION 153A]
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•‡…–‹‘ͳ͵ͻǡ•‡…–‹‘ͳͶ͹ǡ•‡…–‹‘ͳͶͺǡ•‡…–‹‘ͳͶͻǡ•‡…–‹‘ͳͷͳƒ†•‡…–‹‘
ͳͷ͵ǡ‹–Š‡…ƒ•‡‘ˆƒ’‡”•‘™Š‡”‡ƒ•‡ƒ”…Š‹•‹‹–‹ƒ–‡†—†‡”•‡…–‹‘ͳ͵ʹ‘”„‘‘•‘ˆƒ……‘—–ǡ‘–Š‡”†‘…—‡–•‘”
ƒ›ƒ••‡–•ƒ”‡”‡“—‹•‹–‹‘‡†—†‡”•‡…–‹‘ͳ͵ʹƒˆ–‡”–Š‡͵ͳ•–†ƒ›‘ˆƒ›ǡʹͲͲ͵„—–‘‘”„‡ˆ‘”‡–Š‡͵ͳ•–†ƒ›‘ˆ
ƒ”…ŠǡʹͲʹͳǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽƒ••‡••‘””‡ƒ••‡••–Š‡–‘–ƒŽ‹…‘‡‘ˆ•‹šƒ••‡••‡–›‡ƒ”•‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰–Š‡ƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•—…Š•‡ƒ”…Š‹•…‘†—…–‡†‘””‡“—‹•‹–‹‘‹•ƒ†‡Ǥ

‘–‹…‡ˆ‘”ϐ‹Ž‹‰”‡–—”ȏ‡…–‹‘ͳͷ͵ȋͳȌȋƒȌȐ

Š‡…‘…‡”‡†ƒ••‡••‹‰‘ˆϐ‹…‡”…ƒ‹••—‡‘–‹…‡ˆ‘”͸’”‡…‡†‹‰ƒ••‡••‡–›‡ƒ”•ƒ†ˆ‘”Dz–Š‡”‡Ž‡˜ƒ–ƒ••‡••‡–
›‡ƒ”‘”›‡ƒ”•dzǤ ‘”–Š‹•’—”’‘•‡Dz”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”dz•ŠƒŽŽ‡ƒƒƒ••‡••‡–›‡ƒ”’”‡…‡†‹‰–Š‡ƒ••‡••‡–
›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡ ’”‡˜‹‘—• ›‡ƒ” ‹ ™Š‹…Š •‡ƒ”…Š ‹• …‘†—…–‡† ‘” ”‡“—‹•‹–‹‘ ‹• ƒ†‡ ™Š‹…Š ˆƒŽŽ• „‡›‘† ͸
ƒ••‡••‡– ›‡ƒ”• „—– ‘– Žƒ–‡” –Šƒ ͳͲ ƒ••‡••‡– ›‡ƒ”• ˆ”‘ –Š‡ ‡† ‘ˆ –Š‡ ƒ••‡••‡– ›‡ƒ” ”‡Ž‡˜ƒ– –‘ –Š‡
’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•‡ƒ”…Š‹•…‘†—…–‡†Ǥ‘™‡˜‡”ǡˆ‘”–Š‡Dz”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”dz‘–‹…‡…ƒ„‡‹••—‡†‹ˆǦ
Ȉ Š‡ƒ••‡••‹‰‘ˆϐ‹…‡”Šƒ•‹Š‹•’‘••‡••‹‘„‘‘•‘ˆƒ……‘—–•‘”‘–Š‡”†‘…—‡–•‘”‡˜‹†‡…‡™Š‹…Š”‡˜‡ƒŽ
–Šƒ––Š‡‹…‘‡™Š‹…ŠŠƒ•‡•…ƒ’‡†ƒ••‡••‡–ƒ‘—–•–‘ȋ‘”Ž‹‡Ž›–‘ƒ‘—–Ȍ–‘•ǤͷͲŽƒŠ•ȋ‘”‘”‡Ȍ‹
‘‡›‡ƒ”‘”‹ƒ‰‰”‡‰ƒ–‡‹–Š‡”‡Ž‡˜ƒ–Ͷƒ••‡••‡–›‡ƒ”•ˆƒŽŽ‹‰„‡›‘†͸ƒ••‡••‡–›‡ƒ”•Ǥ
Ȉ —…Š‹…‘‡‡•…ƒ’‹‰ƒ••‡••‡–‹–Š‡ˆ‘”‘ˆƒ••‡–ǡȋˆ‘”–Š‹•’—”’‘•‡Dzƒ••‡–dz•ŠƒŽŽ‹…Ž—†‡‹‘˜‡ƒ„Ž‡
Ȉ ’”‘’‡”–›„‡‹‰Žƒ†‘”„—‹Ž†‹‰‘”„‘–Šǡ•Šƒ”‡•ƒ†•‡…—”‹–‹‡•ǡŽ‘ƒ•ƒ†ƒ†˜ƒ…‡•ǡ†‡’‘•‹–•‹„ƒƒ……‘—–ȌǢ
Ȉ Š‡‹…‘‡‡•…ƒ’‹‰ƒ••‡••‡–‘”’ƒ”––Š‡”‡‘ˆ”‡Žƒ–‡•–‘•—…Š›‡ƒ”‘”›‡ƒ”•Ǣƒ†
Ȉ ‡ƒ”…Š—†‡”•‡…–‹‘ͳ͵ʹ‹•‹‹–‹ƒ–‡†‘””‡“—‹•‹–‹‘—†‡”•‡…–‹‘ͳ͵ʹ‹•ƒ†‡‘‘”ƒˆ–‡”’”‹ŽͳǡʹͲͳ͹Ǥ
…‘‡–ƒšƒ—–Š‘”‹–‹‡•ƒ”‡‘–”‡“—‹”‡†–‘†‹•…Ž‘•‡”‡ƒ•‘ˆ‘”…‘†—…–‹‰•‡ƒ”…Š„‡ˆ‘”‡ƒ›’‡”•‘ǡƒ—–Š‘”‹–›‘”
”‹„—ƒŽ ˆ‘” •—…Š ͸ ƒ••‡••‡– ›‡ƒ” ƒ• ’‡” ƒ‡†‡† •‡…–‹‘ ͳ͵ʹǤ ‘™‡˜‡”ǡ –Š‹• …‘…‡••‹‘ ‹• ‘– ƒ˜ƒ‹Žƒ„Ž‡ ‹
”‡•’‡…–‘ˆDz”‡Ž‡˜ƒ–ƒ••‡••‡–›‡ƒ”‘”›‡ƒ”•dz„‡›‘†•—…Š͸ƒ••‡••‡–›‡ƒ”•Ǥ

Separate Assessment for Six Assessment Year

Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽƒ••‡••‘””‡ƒ••‡••–Š‡–‘–ƒŽ‹…‘‡‘ˆ‡ƒ…Š‘ˆ•—…Š•‹šƒ••‡••‡–›‡ƒ”•ȏ”‘˜‹•‘ͳ–‘
•‡…–‹‘ͳͷ͵ȋͳȌȐǤ
Time limit of completion of Assessment of 6 Assessment Years [Section 153B(1)(a)]
Š‡••‡••‹‰‘ˆϐ‹…‡”•ŠƒŽŽƒ‡ƒ‘”†‡”‘ˆƒ••‡••‡–‘””‡Ǧƒ••‡••‡–‹”‡•’‡…–‘ˆ‡ƒ…Šƒ••‡••‡–›‡ƒ”ˆƒŽŽ‹‰
™‹–Š‹•‹šƒ••‡••‡–›‡ƒ”•—†‡”•‡…–‹‘ͳͷ͵ȏ••‡••‡–‹…ƒ•‡‘ˆ•‡ƒ”…Š‘””‡“—‹•‹–‹‘Ȑ™‹–Š‹ƒ’‡”‹‘†‘ˆͳʹ
‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡Žƒ•–‘ˆ–Š‡ƒ—–Š‘”‹œƒ–‹‘ˆ‘”•‡ƒ”…Š—†‡”•‡…–‹‘ͳ͵ʹȏ•‡ƒ”…Š
ƒ†•‡‹œ—”‡Ȑ‘”ˆ‘””‡“—‹•‹–‹‘—†‡”•‡…–‹‘ͳ͵ʹȏ‘™‡”•–‘”‡“—‹•‹–‹‘„‘‘•‘ˆƒ……‘—–•Ȑ™ƒ•‡š‡…—–‡††—”‹‰
–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”…‘‡…‹‰‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲͳͻǤ
Where the search was executed and during the course of proceedings for the assessment or re-assessment, a
reference under section 92CA(1) is made, the period for making an order of assessment or reassessment shall be
extended by 12 months.

‹‡Ž‹‹–‘ˆ…‘’Ž‡–‹‘‘ˆƒ••‡••‡–‘ˆƒ••‡••‡–›‡ƒ””‡Ž‡˜ƒ––‘–Š‡’”‡˜‹‘—•›‡ƒ”‹™Š‹…Š•‡ƒ”…Š‹•
…‘†—…–‡†‘””‡“—‹•‹–‹‘‹•ƒ†‡ȏ‡…–‹‘ͳͷ͵ȋͳȌȋ„ȌȐ

Time limit of completion of assessment in respect of the assessment year relevant to the previous year in which
search is conducted under section 132 or requisition is made under section 132A within a period of 12 months
ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡Žƒ•–ƒ—–Š‘”‹œƒ–‹‘•ˆ‘”•‡ƒ”…Š—†‡”•‡…–‹‘ͳ͵ʹ‘”ˆ‘””‡“—‹•‹–‹‘
—†‡”•‡…–‹‘ͳ͵ʹ™ƒ•‡š‡…—–‡††—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”…‘‡…‹‰‘‘”ƒˆ–‡”ͳ•–’”‹ŽǡʹͲͳͻǤ
…ƒ•‡ƒ••‡••‡–Šƒ•ƒ”‡ˆ‡”‡…‡–‘•‡…–‹‘ͻʹȋͳȌǡ–Š‡–Š‡ƒ„‘˜‡’‡”‹‘†•ŠƒŽŽ„‡‡š–‡†‡†„›ͳʹ‘–Š•Ǥ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͺ͵

TIME LIMIT FOR COMPLETION OF ASSESSMENTS AND RE-ASSESSMENTS [SECTION 153]

(1) As per Section 153(1), the time limit for making assessment under section 143(3) [Scrutiny Assessment]
and Section 144 [best judgment assessment] is:-
ȋƒȌ ‹–Š‹ ʹͳ ‘–Š• ˆ”‘ –Š‡ ‡† ‘ˆ –Š‡ ƒ••‡••‡– ›‡ƒ” ‹ ™Š‹…Š –Š‡ ‹…‘‡ ™ƒ• ϐ‹”•– ƒ••‡••ƒ„Ž‡Ǥ ȏ ‘”
ƒ••‡••‡–›‡ƒ”ʹͲͳ͹Ǧͳͺ‘”„‡ˆ‘”‡Ȑ
ȋ„Ȍ ͳͺ‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•ϐ‹”•–ƒ••‡••ƒ„Ž‡Ǥȏˆ‘”ƒ••‡••‡–
›‡ƒ”ʹͲͳͺǦͳͻȐ
ȋ…Ȍ ͳʹ‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•ϐ‹”•–ƒ••‡••ƒ„Ž‡ȏ••‡••‡–›‡ƒ”
ʹͲʹͲǦʹͳƬʹͲʹͳǦʹʹȐ
ȋ†Ȍ ͻ‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡ƒ••‡••‡–›‡ƒ”‹™Š‹…Š–Š‡‹…‘‡™ƒ•ϐ‹”•–ƒ••‡••ƒ„Ž‡ȏ••‡••‡–›‡ƒ”
ʹͲʹʹǦʹ͵ƒ†‘™ƒ”†•Ȑ
‘–‡ǣˆ”‡ˆ‡”‡…‡‹•ƒ†‡–‘”ƒ•ˆ‡””‹…‹‰ˆϐ‹…‡”ȋȌǡ–Š‡’‡”‹‘†ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”ƒ••‡••‡–•ŠƒŽŽ„‡‡š–‡†‡†
„›ͳʹ‘–Š•Ǥ
(2) As per Section 153(2), the time limit for making assessment under section 147 [Income Escaping
Assessment ] is:-
ȋƒȌ ‹–Š‹ ͻ ‘–Š• ˆ”‘ –Š‡ ‡† ‘ˆ–Š‡ ϐ‹ƒ…‹ƒŽ ›‡ƒ” ‹ ™Š‹…Š –Š‡ ‘–‹…‡ —†‡”•‡…–‹‘ͳͶͺ™ƒ• •‡”˜‡† ȋ‹ˆ
‘–‹…‡‹••‡”˜‡†„‡ˆ‘”‡ͲͳǦͲͶǦʹͲͳͻȌǤ
ȋ„Ȍ ͳʹ‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š‘–‹…‡—†‡”•‡…–‹‘ͳͶͺ‹••‡”˜‡†ȋ‹ˆ‘–‹…‡‹••‡”˜‡†
‘‘”ƒˆ–‡”ͲͳǦͲͶǦʹͲͳͻȌǤ
‘–‡ǣˆ”‡ˆ‡”‡…‡‹•ƒ†‡–‘”ƒ•ˆ‡””‹…‹‰ˆϐ‹…‡”ǡ–Š‡’‡”‹‘†ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”ƒ••‡••‡–•ŠƒŽŽ„‡‡š–‡†‡†„›
ͳʹ‘–Š•Ǥ
Section 153(2A) deals with assessment where original assessment has been cancelled or set aside by the
Appellate Authority under section 250 (Procedure in hearing), 254 (Order of Appellate Tribunal) or by
Commissioner of Income Tax under section 263 (Revision of Orders, Prejudicial to Revenue), 264 (Revision
of Orders in favour of Assessee) ǣŠ‡‹‡Ž‹‹–ˆ‘”…‘’Ž‡–‹‘‘ˆ••‡••‡–Ȁ‡Ǧ••‡••‡–‹•ͳʹ‘–Š•ˆ”‘
‡†‘ˆ–Š‡ ‹ƒ…‹ƒŽ‡ƒ”‹™Š‹…ŠȂ
ȋƒȌ —…Š‘”†‡”‘ˆ•‡–ƒ•‹†‡‘”…ƒ…‡ŽŽ‹‰–Š‡‘”†‡”‹•’ƒ••‡†„›–Š‡’’‡ŽŽƒ–‡—–Š‘”‹–›—†‡”•‡…–‹‘ʹͷͲ‘”ʹͷͶ
”‡…‡‹˜‡†„›‘‹••‹‘‡”‘ˆ…‘‡ƒšǤ
ȋ„Ȍ ”†‡”—†‡”•‡…–‹‘ʹ͸͵‘”ʹ͸Ͷ™ƒ•’ƒ••‡†„›–Š‡‘‹••‹‘‡”‘ˆ…‘‡ƒšǤ
‘™‡˜‡”ǡ‹ˆ”‡ˆ‡”‡…‡™ƒ•ƒ†‡–‘”ƒ•ˆ‡””‹…‹‰ˆϐ‹…‡”—†‡”•‡…–‹‘ͻʹȋͳȌ†—”‹‰–Š‡…‘—”•‡‘ˆ’”‘…‡‡†‹‰
•—…Š’‡”‹‘†•ŠƒŽŽ„‡‡š–‡†‡†„›ͳʹ‘–Š•ˆ‘”…‘’Ž‡–‹‘‘ˆƒ••‡••‡–Ǥ
NoteǣŠ‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ…ƒ‘–…ƒ…‡Ž‘”•‡–ƒ•‹†‡–Š‡••‡••‡–ƒ†”‡ˆ‡”–Š‡…ƒ•‡–‘–Š‡••‡••‹‰
ˆϐ‹…‡”ˆ‘”ˆ”‡•Šƒ••‡••‡–Ǥ‘™‡˜‡”ǡ‹–…ƒ„‡•‡–ƒ•‹†‡„›‘”‘‹••‹‘‡”—†‡”•‡…–‹‘ʹ͸͵‘”ʹ͸ͶǤ
ȋͶȌŠ‡”‡‡ˆˆ‡…––‘ƒ‘”†‡”—†‡”•‡…–‹‘ʹͷͲ‘”•‡…–‹‘ʹͷͶ‘”•‡…–‹‘ʹ͸Ͳ‘”•‡…–‹‘ʹ͸ʹ‘”•‡…–‹‘ʹ͸͵‘”
•‡…–‹‘ʹ͸Ͷ‹•–‘„‡‰‹˜‡„›–Š‡••‡••‹‰ˆϐ‹…‡”ǡ™Š‘ŽŽ›‘”’ƒ”–Ž›ǡ‘–Š‡”™‹•‡–Šƒ„›ƒ‹‰ƒˆ”‡•Šƒ••‡••‡–‘”
”‡ƒ••‡••‡–ǡ•—…Š‡ˆˆ‡…–•ŠƒŽŽ„‡‰‹˜‡™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š”‡‡‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š‘”†‡”
—†‡”•‡…–‹‘ʹͷͲ‘”•‡…–‹‘ʹͷͶ‘”•‡…–‹‘ʹ͸Ͳ‘”•‡…–‹‘ʹ͸ʹ‹•”‡…‡‹˜‡†„›–Š‡”‹…‹’ƒŽŠ‹‡ˆ‘‹••‹‘‡”‘”
Š‹‡ˆ‘‹••‹‘‡”‘””‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡‘”†‡”—†‡”•‡…–‹‘ʹ͸͵
‘”•‡…–‹‘ʹ͸Ͷ‹•’ƒ••‡†„›–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǣ
”‘˜‹†‡†–Šƒ–™Š‡”‡‹–‹•‘–’‘••‹„Ž‡ˆ‘”–Š‡••‡••‹‰ˆϐ‹…‡”–‘‰‹˜‡‡ˆˆ‡…––‘•—…Š‘”†‡”™‹–Š‹–Š‡ƒˆ‘”‡•ƒ‹†’‡”‹‘†ǡ
ˆ‘””‡ƒ•‘•„‡›‘†Š‹•…‘–”‘Žǡ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‘”‡…‡‹’–‘ˆ•—…Š”‡“—‡•–‹™”‹–‹‰
ˆ”‘–Š‡••‡••‹‰ˆϐ‹…‡”ǡ‹ˆ•ƒ–‹•ϐ‹‡†ǡƒ›ƒŽŽ‘™ƒƒ††‹–‹‘ƒŽ’‡”‹‘†‘ˆ•‹š‘–Š•–‘‰‹˜‡‡ˆˆ‡…––‘–Š‡‘”†‡”Ǥ
ȋͷȌ ‡…–‹‘ ͳͷ͵ȋͶȌ †‡ƒŽ• ™‹–Š –Š‡ …ƒ•‡• ™Š‡”‡ ƒ› ”‘…‡‡†‹‰ ‹‹–‹ƒ–‡† ‘” ‘”†‡” ‘ˆ ƒ••‡••‡–Ȁ”‡Ǧƒ••‡••‡–
ƒ†‡ —†‡” ͳͷ͵ȋͳȌ ȏ”‡Žƒ–‹‰ –‘ ƒ••‡••‡– ‘ˆ •‡ƒ”…Š …ƒ•‡•Ȑ Šƒ• „‡‡ ƒ—ŽŽ‡† ‹ ƒ ƒ’’‡ƒŽ ‘” ‹ ‘–Š‡” Ž‡‰ƒŽ
’”‘…‡‡†‹‰•ƒ†ƒ••‡••‡–Ȁ”‡Ǧƒ••‡••‡–”‡Žƒ–‹‰–‘ƒ••‡••‡–›‡ƒ”™Š‹…Š™ƒ•ƒ„ƒ‹–‡†Šƒ•„‡‡”‡˜‹˜‡†ǣ
 ͷͺͶ Lesson 10 Ȉ EP-TL

•—…Š…ƒ•‡–Š‡–‹‡Ž‹‹–ˆ‘”…‘’Ž‡–‹‘‘ˆ••‡••‡–Ȁ‡Ǧ••‡••‡–‹•ͳ›‡ƒ”ˆ”‘‡†‘ˆ–Š‡‘–Š‘ˆ•—…Š
”‡˜‹˜ƒŽ ‘” ™‹–Š‹ –Š‡ –‹‡ •’‡…‹ϐ‹‡† ‹ •‡…–‹‘ ͳͷ͵ ‘” •‡…–‹‘ ͳͷ͵ȋͳȌ ȏ’”‡•…”‹„‡ –‹‡ Ž‹‹– ˆ‘” …‘’Ž‡–‹‘ ‘ˆ
ƒ••‡••‡–—†‡”•‡…–‹‘ͳͷ͵Ȑ™Š‹…Š‡˜‡”‹•Žƒ–‡”Ǥ

Computation of Period of limitation

…‘’—–‹‰–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘ˆ‘”–Š‹•’—”’‘•‡ǡ–Š‡–‹‡–ƒ‡‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡••ŠƒŽŽ„‡‡š…Ž—†‡†ǣ
ȋ‹Ȍ –Š‡–‹‡–ƒ‡‹”‡Ǧ‘’‡‹‰–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡’”‘…‡‡†‹‰‘”‹‰‹˜‹‰ƒ‘’’‘”–—‹–›–‘–Š‡ƒ••‡••‡‡
–‘„‡”‡ǦŠ‡ƒ”†—†‡”•‡…–‹‘ͳʹͻǢ
ȋ‹‹Ȍ –Š‡’‡”‹‘††—”‹‰™Š‹…Š–Š‡ƒ••‡••‡–’”‘…‡‡†‹‰‹••–ƒ›‡†„›ƒ‘”†‡”‘”‹Œ—…–‹‘‘ˆƒ›…‘—”–Ǣ
ȋ‹‹‹Ȍ –Š‡’‡”‹‘†…‘‡…‹‰ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡••‡••‹‰ˆϐ‹…‡”†‹”‡…–•–Š‡ƒ••‡••‡‡–‘‰‡–Š‹•ƒ……‘—–•
ƒ—†‹–‡†—†‡”•‡…–‹‘ͳͶʹȋʹȌƒ†‡†‹‰™‹–Š–Š‡Žƒ•–†ƒ–‡‘™Š‹…Š–Š‡ƒ••‡••‡‡‹•”‡“—‹”‡†–‘ˆ—”‹•Šƒ
”‡’‘”–‘ˆ•—…Šƒ—†‹–‘”™Š‡”‡•—…Š†‹”‡…–‹‘‹•…ŠƒŽŽ‡‰‡†„‡ˆ‘”‡ƒ…‘—”–ǡ‡†‹‰™‹–Š–Š‡†ƒ–‡‘™Š‹…Š‘”†‡”
‹••‡––‹‰ƒ•‹†‡–Š‡†ƒ–‡‘™Š‹…Š•—…Š†‹”‡…–‹‘‹•”‡…‡‹˜‡†„›–Š‡‘‹••‹‘‡”Ǣ
ȋ‹˜Ȍ –Š‡ ’‡”‹‘† ȋ‘– ‡š…‡‡†‹‰ ͸Ͳ †ƒ›•Ȍ …‘‡…‹‰ ˆ”‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š –Š‡ †‡…Žƒ”ƒ–‹‘ —†‡” ‡…–‹‘
ͳͷͺȋͳȌ‹•”‡…‡‹˜‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”ƒ†‡†‹‰™‹–Š–Š‡†ƒ–‡‘™Š‹…Š–Š‡‘”†‡”–Š‡”‡—†‡”‹•ƒ†‡
„›Š‹Ǣ
ȋ˜Ȍ ™Š‡”‡ ƒ ƒ’’Ž‹…ƒ–‹‘ ƒ†‡ „‡ˆ‘”‡ –Š‡ …‘‡Ǧ–ƒš ‡––Ž‡‡– ‘‹••‹‘ ‹• ”‡Œ‡…–‡† „› ‹–ǡ –Š‡ ’‡”‹‘†
…‘‡…‹‰ˆ”‘–Š‡†ƒ–‡‘™Š‹…Šƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡ƒ†‡†‹‰™‹–Š–Š‡†ƒ–‡‘™Š‹…Š–Š‡‘”†‡”‹•
”‡…‡‹˜‡†„›–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”Ǥ
ȋ˜‹Ȍ –Š‡ ’‡”‹‘† …‘‡…‹‰ ˆ”‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š ƒ ƒ’’Ž‹…ƒ–‹‘ ‹• ƒ†‡ „‡ˆ‘”‡ –Š‡ —–Š‘”‹–› ˆ‘” †˜ƒ…‡
—Ž‹‰•—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͶͷƒ†‡†‹‰™‹–Š–Š‡†ƒ–‡‘™Š‹…Š–Š‡‘”†‡””‡Œ‡…–‹‰–Š‡
ƒ’’Ž‹…ƒ–‹‘‹•”‡…‡‹˜‡†„›–Š‡‘‹••‹‘‡”—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ʹͶͷǢ‘”
ȋ˜‹‹Ȍ –Š‡ ’‡”‹‘† …‘‡…‹‰ ˆ”‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š ƒ ƒ’’Ž‹…ƒ–‹‘ ‹• ƒ†‡ „‡ˆ‘”‡ –Š‡ —–Š‘”‹–› ˆ‘” †˜ƒ…‡
—Ž‹‰• —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ʹͶͷ ƒ† ‡†‹‰ ™‹–Š –Š‡ †ƒ–‡ ‘ ™Š‹…Š –Š‡ ƒ†˜ƒ…‡ ”—Ž‹‰
’”‘‘—…‡†„›‹–‹•”‡…‡‹˜‡†„›–Š‡‘‹••‹‘‡”—†‡”•—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ•‡…–‹‘ʹͶͷǢ‘”
ȋ˜‹‹‹Ȍ –Š‡ ’‡”‹‘† …‘‡…‹‰ ˆ”‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š ”‡ˆ‡”‡…‡ ‘” ϐ‹”•– ‘ˆ –Š‡ ”‡ˆ‡”‡…‡• ˆ‘” –Š‡ ‡š…Šƒ‰‡ ‘ˆ
‹ˆ‘”ƒ–‹‘‹•ƒ†‡„›–Š‡ƒ—–Š‘”‹–›…‘’‡–‡–—†‡”ƒƒ‰”‡‡‡–”‡ˆ‡””‡†–‘‹•‡…–‹‘ͻͲ‘”•‡…–‹‘ͻͲ
ƒ† ‡†‹‰ ™‹–Š –Š‡ †ƒ–‡ ‘ ™Š‹…Š –Š‡ ‹ˆ‘”ƒ–‹‘ ”‡“—‡•–‡† ‹• Žƒ•– ”‡…‡‹˜‡† „› –Š‡ …‘‹••‹‘‡” ‘” ƒ
’‡”‹‘†‘ˆ‘‡›‡ƒ”™Š‹…Š‡˜‡”‹•Ž‡••Ǣ‘”
Š‡’‡”‹‘†…‘‡…‹‰ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡••‡••‹‰ˆϐ‹…‡”ƒ‡•ƒ”‡ˆ‡”‡…‡–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”
—†‡”•‡…–‹‘ͳͶʹƒ†‡†‹‰™‹–Š–Š‡†ƒ–‡‘™Š‹…Š–Š‡”‡’‘”–‘ˆ–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”‹•”‡…‡‹˜‡†„›–Š‡••‡••‹‰
ˆϐ‹…‡”Ǥ
APPEAL
An appeal is a complaint to a superior authority of an injustice done by inferior authority. The party
complaining is called “Appellant” and the other party is known as “Respondent”
Š‡”‹‰Š––‘ƒ’’‡ƒŽ—•–„‡‰‹˜‡„›‡š’”‡••‡ƒ…–‡–‹–Š‡…–ǤŠ‡”‡ˆ‘”‡ǡ‹…ƒ•‡–Š‡”‡‹•‘’”‘˜‹•‹‘‹–Š‡…–
ˆ‘”ϐ‹Ž‹‰ƒƒ’’‡ƒŽ”‡‰ƒ”†‹‰ƒ’ƒ”–‹…—Žƒ”ƒ––‡”ǡ‘ƒ’’‡ƒŽ•ŠƒŽŽŽ‹‡ǤŠ‡”‹‰Š––‘ƒ’’‡ƒŽƒ”‹•‡•™Š‡”‡–Š‡–ƒš’ƒ›‡”
‹•ƒ‰‰”‹‡˜‡†„›–Š‡‘”†‡”’ƒ••‡†„›–Š‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›Ǥ‘™‡˜‡”ǡ™Š‡”‡–Š‡••‡••‹‰ˆˆ‹…‡”ƒ……‡’–•
–Š‡”‡–—”ˆ‹Ž‡†„›–Š‡–ƒš’ƒ›‡”ƒ†’ƒ••‡•ƒ‘”†‡”ƒ‹‰‘‘†‹ˆ‹…ƒ–‹‘ǡƒƒ’’‡ƒŽ†‘‡•‘–Ž‹‡ƒ‰ƒ‹•–
–Šƒ–‘”†‡”ƒ•–Š‡–ƒš’ƒ›‡”…ƒ‘–„‡•ƒ‹†–‘„‡ƒ‰‰”‹‡˜‡†‘ˆ–Šƒ–‘”†‡”Ǥ‹‹Žƒ”Ž›ǡ™Š‡”‡ƒƒ’’‡ŽŽƒ–‡ƒ—–Š‘”‹–›
ƒ……‡’–•–Š‡…‘–‡–‹‘‘ˆ–Š‡–ƒš’ƒ›‡”ƒ†ƒŽŽ‘™•–Š‡ƒ’’‡ƒŽǡ–Š‡”‡‹•‘ˆ—”–Š‡”ƒ’’‡ƒŽ„›–Š‡ƒ••‡••‡‡ƒ‰ƒ‹•–
–Šƒ–‘”†‡”Ǥ
Š‡ƒ••‡••‡‡ƒ›’”‡ˆ‡”ƒƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”•‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍǡ‹
ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ”‡Ž‡˜ƒ– ’”‘˜‹•‹‘• —†‡” ‡…–‹‘ ʹͶ͸ ƒ† ƒ’’‡ƒŽ ƒ‰ƒ‹•– –Š‡ ‘”†‡” ‘ˆ –Š‡ ‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍ …ƒ „‡ ’”‡ˆ‡””‡† „› –Š‡ ••‡••‡‡ ‘” –Š‡ ‘‹••‹‘‡” ‘ˆ …‘‡ ƒš ƒ† •—…Š ƒ’’‡ƒŽ Ž‹‡• ™‹–Š –Š‡
’’‡ŽŽƒ–‡”‹„—ƒŽǤ
Š‡ ‹ƒ…‡ ȋ‘ǤʹȌ …–ǡ ͳͻͻͺ Šƒ• ƒ‡†‡† –Š‡ ’”‘˜‹•‹‘• ”‡‰ƒ”†‹‰ ”‡‡†› ƒ‰ƒ‹•– ‘”†‡” ‘ˆ ”‹„—ƒŽǤ Š‡”‡
 Lesson 10 ȈAssessment, Appeals & Revision ͷͺͷ

‡ƒ”Ž‹‡”–Š‡ƒ••‡••‡‡‘”–Š‡ǡ‹ˆ‘–•ƒ–‹•ϐ‹‡†™‹–Š–Š‡‘”†‡”‘ˆ”‹„—ƒŽǡ…‘—Ž†‘Ž›”‡“—‡•––Š‡”‹„—ƒŽ–‘”‡ˆ‡”
–Šƒ– ƒ––‡” –‘ –Š‡ ‹‰Š ‘—”–Ǥ ˆ–‡” ͳǤͳͲǤͻͺ ƒ• ’”‘˜‹†‡† „› ‹ƒ…‡ ȋ‘ǤʹȌ …–ǡ ͳͻͻͺ –Š‡ ƒ••‡••‡‡ ‘”  ‹ˆ ‘–
•ƒ–‹•ϐ‹‡†™‹–Š–Š‡‘”†‡”‘ˆ–Š‡–”‹„—ƒŽ…ƒƒ’’‡ƒŽ†‹”‡…–Ž›–‘–Š‡‹‰Š‘—”–ǡ‹ˆ‹‰Š‘—”–‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡…ƒ•‡
‹˜‘Ž˜‡ƒ•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™ƒ†‹ˆ–Š‡ƒ••‡••‡‡‘”‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš‹•‘–•ƒ–‹•ϐ‹‡†™‹–Š–Š‡
‘”†‡”’ƒ••‡†„›–Š‡‹‰Š‘—”––Š‡›ƒ›ϐ‹Ž‡ƒƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ–Š‡‹‰Š‘—”––‘–Š‡—’”‡‡‘—”–Ǥ
‘™‡˜‡”ǡ ‹– •Š‘—Ž† „‡ ‘–‡† –Šƒ– ‹ –Š‡ …ƒ•‡ ‘ˆ “—‡•–‹‘ ‘ˆ ˆƒ…– –”‹„—ƒŽ ‹• –Š‡ ϐ‹ƒŽ Ƭ „‹†‹‰ ƒ—–Š‘”‹–› ƒ† ‹–•
†‡…‹•‹‘‹•ϐ‹ƒŽǤ
APPEALABLE ORDERS BEFORE COMMISSIONER (APPEALS)
’’‡ƒŽƒ„Ž‡‘”†‡”„‡ˆ‘”‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍȏ‡…–‹‘ʹͶ͸Ȑ
APPEALABLE ORDERS BEFORE COMMISSIONER (APPEALS)
› ƒ••‡••‡‡ ‘” ƒ› †‡†—…–‘” ‘” ƒ› …‘ŽŽ‡…–‘” ƒ‰‰”‹‡˜‡† „› ƒ› ‘ˆ –Š‡ ˆ‘ŽŽ‘™‹‰ ‘”†‡”• ƒ› ƒ’’‡ƒŽ –‘ –Š‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍǣ
ȋƒȌ ƒ‰ƒ‹•–ƒ‘”†‡”’ƒ••‡†„›ƒ ‘‹–‘‹••‹‘‡”—†‡”Žƒ—•‡ȋ‹‹Ȍ‘ˆ—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ‡…–‹‘ͳͳͷ‘”ƒ
‘”†‡” ƒ‰ƒ‹•– –Š‡ ƒ••‡••‡‡ ™Š‡”‡ Š‡ †‡‹‡• Š‹• Ž‹ƒ„‹Ž‹–› –‘ „‡ ƒ••‡••‡† —†‡” –Š‡ …‘‡ ƒš …–ǡ ‘” ƒ
‹–‹ƒ–‹‘ —†‡” •‡…–‹‘ ͳͶ͵ ȋͳȌ ‘” ȋͳȌ ‘” •‡…–‹‘ ʹͲͲȋͳȌ ‘” •‡…–‹‘ ʹͲ͸ȋͳȌǡ ™Š‡”‡ –Š‡ ƒ••‡••‡‡ ‘”
†‡†—…–‘” ‘” …‘ŽŽ‡…–‘” ‘„Œ‡…–• –‘ ƒ‹‰ ‘ˆ ƒ†Œ—•–‡– ‘” ƒ› ‘”†‡” ‘ˆ ƒ••‡••‡– —†‡” •‡…–‹‘ ͳͶ͵ȋ͵Ȍ
‡š…‡’–ƒ‘”†‡”’ƒ••‡†‹’—”•—ƒ…‡‘ˆ†‹”‡…–‹‘•‘ˆ‹•’—–‡‡•‘Ž—–‹‘ƒ‡Ž‘”‡…–‹‘ͳͶͶ™Š‡”‡ƒ••‡••‡‡
‘„Œ‡…––‘–Š‡ƒ‘—–‘ˆ‹…‘‡ƒ••‡••‡†‘”ƒ‘—–‘ˆ–ƒš†‡–‡”‹‡†‘”ƒ‘—–‘ˆŽ‘••…‘’—–‡†‘”•–ƒ–—•
—†‡”™Š‹…ŠŠ‡‹•ƒ••‡••‡†Ǣ
ȋ„Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”‘ˆƒ••‡••‡–ǡ”‡Ǧƒ••‡••‡–‘””‡Ǧ…‘’—–ƒ–‹‘—†‡”‡…–‹‘ͳͶ͹‡š…‡’–ƒ‘”†‡”’ƒ••‡†
‹’—”•—ƒ…‡‘ˆ†‹”‡…–‹‘•‘ˆ†‹•’—–‡”‡•‘Ž—–‹‘’ƒ‡Ž‘”‡…–‹‘ͳͷͲǢ
ȋ„ƒȌ ƒ‘”†‡”‘ˆƒ••‡••‡–‘””‡ƒ••‡••‡–—†‡”‡…–‹‘ͳͷ͵‡š…‡’–ƒ‘”†‡”’ƒ••‡†‹’—”•—ƒ…‡‘ˆ†‹”‡…–‹‘•
‘ˆ†‹•’—–‡”‡•‘Ž—–‹‘’ƒ‡ŽǢ
ȋ„„Ȍ ƒ‘”†‡”‘ˆƒ••‡••‡–‘””‡Ǧƒ••‡••‡–—†‡”•‡…–‹‘ͻʹȋ͵ȌǢ
ȋ…Ȍ ƒ‰ƒ‹•– ƒ ‘”†‡” ‘ˆ ”‡…–‹ϐ‹…ƒ–‹‘ ‘ˆ ‹•–ƒ‡ —†‡” ‡…–‹‘ ͳͷͶ ‘” ‡…–‹‘ ͳͷͷ Šƒ˜‹‰ ‡ˆˆ‡…– ‘ˆ ‡Šƒ…‹‰
ƒ••‡••‡–‘””‡†—…‹‰”‡ˆ—†‘”‘”†‡””‡ˆ—•‹‰–‘ƒŽŽ‘™…Žƒ‹ƒ†‡„›ƒ••‡••‡‡—†‡”–Š‡•‡•‡…–‹‘•Ǣ
ȋƒ†Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”—†‡”‡…–‹‘ͳ͸͵–”‡ƒ–‹‰–Š‡ƒ••‡••‡‡ƒ•–Š‡ƒ‰‡–‘ˆƒ‘Ǧ”‡•‹†‡–Ǣ
ȋ‡Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”—†‡”‡…–‹‘ͳ͹ͲȋʹȌ‘”ͳ͹Ͳȋ͵Ȍ”‡Žƒ–‹‰–‘•—……‡••‹‘‘ˆ„—•‹‡••‘–Š‡”™‹•‡‘†‡ƒ–ŠǢ
ȋˆȌ ƒ‰ƒ‹•–ƒ‘”†‡”ƒ†‡—†‡”‡…–‹‘ͳ͹ͳǢ
ȋ‰Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”—†‡”‡…–‹‘ͳͺͷǢ
ȋŠȌ ƒ‰ƒ‹•–ƒ‘”†‡”…ƒ…‡ŽŽ‹‰–Š‡”‡‰‹•–”ƒ–‹‘‘ˆϐ‹”—†‡”•‡…–‹‘ͳͺ͸ȋͳȌ‘”ȋʹȌǢ
ȋ‹Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”—†‡”‡…–‹‘ʹ͵͹Ǣ
ȋŒȌ ƒ‰ƒ‹•–ƒ‘”†‡”—†‡”‡…–‹‘ʹͲͳ‘”ʹͲ͸ȋȌȋȌǢ
ȋȌ ’‡”•‘†‡‡‡†–‘„‡ƒƒ••‡••‡‡‹†‡ˆƒ—Ž–ˆ‘”‘–…‘ŽŽ‡…–‹‰–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–ƒš‘”ƒˆ–‡”…‘ŽŽ‡…–‹‰
–Š‡–ƒšǡˆƒ‹Ž‹‰–‘’ƒ›–Š‡•ƒ‡ǡƒ›ƒ’’‡ƒŽ„‡ˆ‘”‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‘‘”ƒˆ–‡”’”‹ŽͳǡʹͲͲ͹Ǥ
ȋŽȌ ƒ‰ƒ‹•–ƒ‘”†‡”‹’‘•‹‰ƒ’‡ƒŽ–›—†‡”‡…–‹‘ʹʹͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳ ǡʹ͹ͳ ǡʹ͹ʹǡ
‡…–‹‘ʹ͹ʹǡʹ͹ʹǡʹ͹ʹ‘”‡…–‹‘ʹ͹͵Ǣ
ȋȌ ƒ‘”†‡”‘ˆ‹’‘•‹‰‘”‡Šƒ…‹‰’‡ƒŽ–›—†‡”‡…–‹‘ʹ͹ͷȋͳȌǢ
ȋȌ ƒ‰ƒ‹•–ƒ‘”†‡”‘ˆƒ••‡••‡–ƒ†‡„›ƒƒ••‡••‹‰‘ˆϐ‹…‡”—†‡”…Žƒ—•‡ȋ…Ȍ‘ˆ‡…–‹‘ͳͷͺǡ‹”‡•’‡…–‘ˆ
•‡ƒ”…Š‹‹–‹ƒ–‡†—†‡”‡…–‹‘ͳ͵ʹ‘”„‘‘•‘ˆƒ……‘—–ǡ‘–Š‡”†‘…—‡–•‘”ƒ›ƒ••‡–•”‡“—‹•‹–‹‘‡†—†‡”
‡…–‹‘ͳ͵ʹǢ
ȋ‘Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”‹’‘•‹‰ƒ’‡ƒŽ–›—†‡”—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ͳͷͺ Ǣ
ȋ’Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”‹’‘•‹‰’‡ƒŽ–›—†‡”‡…–‹‘ʹ͹ͳ‘”‡…–‹‘ʹ͹ͳǢ
ȋ“Ȍ ƒ‰ƒ‹•– ƒ ‘”†‡” ƒ†‡ „› ƒ ‘‹– ‘‹••‹‘‡” ‹’‘•‹‰ ƒ ’‡ƒŽ–› —†‡” ‡…–‹‘ ʹ͹ͳǡ ‡…–‹‘ ʹ͹ͳǡ
‡…–‹‘ʹ͹ͳ‘”‡…–‹‘ʹ͹ͳǢ
 ͷͺ͸ Lesson 10 Ȉ EP-TL

ȋ”Ȍ ƒ‰ƒ‹•– ƒ ‘”†‡” ƒ†‡ „› ƒ ‘‹– ‘‹••‹‘‡” ‹’‘•‹‰ ƒ ’‡ƒŽ–› —†‡” ‡…–‹‘ ʹ͹ʹ ƒ† „› ƒ ‘‹–
‘‹••‹‘‡”‘” ‘‹–‹”‡…–‘”—†‡”‡…–‹‘ʹ͹ͻǢ
ȋ•Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”‹’‘•‹‰ƒ’‡ƒŽ–›—†‡”Šƒ’–‡”‘ˆ…‘‡Ǧ–ƒš…–Ǣ
ȋ–Ȍ ƒ‰ƒ‹•–ƒ‘”†‡”ƒ†‡„›ƒ••‡••‹‰ˆϐ‹…‡”‘–Š‡”–Šƒƒ ‘‹–‘‹••‹‘‡”—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•
…–ǡ‹…ƒ•‡‘ˆ•’‡…‹ϐ‹‡†’‡”•‘‘”…Žƒ••‡•‘ˆ’‡”•‘•Ǥ
Š‡”‡ƒ’‡”•‘Šƒ•†‡†—…–‡†ƒ†’ƒ‹†–ƒš‹ƒ……‘”†ƒ…‡™‹–Š‡…–‹‘ͳͻͷƒ†ʹͲͲ‹”‡•’‡…–‘ˆƒ›•—ȋ‘–Š‡”
–Šƒ‹–‡”‡•–Ȍ…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡…–Š‡‹•‡–‹–Ž‡†–‘’”‡ˆ‡”ƒƒ’’‡ƒŽ—†‡”‡…–‹‘ʹͶͺ–‘„‡†‡…Žƒ”‡†‘–Ž‹ƒ„Ž‡
–‘†‡†—…––ƒšǤ‘–Š‡”™‘”†•ǡ–Š‡”‹‰Š––‘ƒ’’‡ƒŽ—†‡”‡…–‹‘ʹͶͺ‹•…‘†‹–‹‘ƒŽƒ†…ƒ„‡‡š‡”…‹•‡†‘Ž›‹ˆ–ƒš‹•
†‡†—…–‡†ƒ–•‘—”…‡ƒ†’ƒ‹†–‘–Š‡
‘˜‡”‡–Ǥ
‡…–‹‘ʹͶͺ’”‘˜‹†‡•–Šƒ–™Š‡”‡—†‡”ƒƒ‰”‡‡‡–‘”‘–Š‡”ƒ””ƒ‰‡‡–ǡ–Š‡–ƒš†‡†—…–‹„Ž‡‘ƒ›‹…‘‡ȋ‘–
„‡‹‰‹–‡”‡•–Ȍ—†‡”‡…–‹‘ͳͻͷ‹•–‘„‡„‘”‡„›–Š‡’ƒ›‡”ȋ‹Ǥ‡ǤǡDz‡–‘ˆ–ƒšdzƒ””ƒ‰‡‡–Ȍƒ†•—…Š’‡”•‘Šƒ˜‹‰
’ƒ‹† •—…Š –ƒš –‘ –Š‡ …”‡†‹– ‘ˆ –Š‡ ‡–”ƒŽ
‘˜‡”‡–ǡ …Žƒ‹• –Šƒ– ‘ –ƒš ™ƒ• ”‡“—‹”‡† –‘ „‡ †‡†—…–‡† ‘ •—…Š
‹…‘‡ǡŠ‡ƒ›ƒ’’‡ƒŽ–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍˆ‘”ƒ†‡…Žƒ”ƒ–‹‘–Šƒ–‘–ƒš™ƒ•†‡†—…–‹„Ž‡‘•—…Š‹…‘‡Ǥ
Forms and Fees
Š‡ƒ’’‡ƒŽ•Š‘—Ž†„‡ϐ‹Ž‡†‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†˜‡”‹ϐ‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”Ǥ…ƒ•‡‘ˆƒƒ’’‡ƒŽƒ†‡
–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡͳͻͻͺǡ‹–•ŠƒŽŽ„‡ƒ……‘’ƒ‹‡†„›ƒˆ‡‡•‹””‡•’‡…–‹˜‡
‘ˆ–Š‡†ƒ–‡‘ˆ‹‹–‹ƒ–‹‘‘ˆ–Š‡ƒ••‡••‡–’”‘…‡‡†‹‰•ǤŠ‡”ƒ–‡•‘ˆˆ‡‡•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ

Sl No Assessed Income Fees

ͳ Rs. 1,00,000 or less Rs. 250
2 More than Rs. 1,00,000 but not more than Rs. 2,00,000 Rs. 500
͵ More than Rs. 2,00,000 Rs. 1000
Ͷ Any other case Rs. 250

‘” ‘Ǥ ͵ͷ ‹• –Š‡ ’”‡•…”‹„‡† ˆ‘” ȏ—†‡” —Ž‡ ͶͷȋͳȌȐ ‘ˆ –Š‡ ƒ’’‡ƒŽǤ Š‡ ˆ‘” ‘ˆ ƒ’’‡ƒŽǡ –Š‡ ‰”‘—†• ƒ† –Š‡
˜‡”‹ϐ‹…ƒ–‹‘ƒ’’‡†‡†–‘–Š‡ˆ‘”•Š‘—Ž†„‡•‹‰‡†ȏ—Ž‡ͶͷȋʹȌȐƒ•’‡”’”‘˜‹•‹‘•ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡•‹‰‹‰‘ˆ”‡–—”
—†‡”‡…–‹‘ͳͶͲǤ
‘”‘Ǥ͵ͷ”‡“—‹”‡•–Šƒ––Š‡‡‘”ƒ†—‘ˆƒ’’‡ƒŽǡ•–ƒ–‡‡–‘ˆˆƒ…–•ƒ†–Š‡‰”‘—†•‘ˆ–Š‡ƒ’’‡ƒŽ—•–„‡‹
†—’Ž‹…ƒ–‡ƒ†•Š‘—Ž†„‡ƒ……‘’ƒ‹‡†„›ƒ…‘’›‘ˆ–Š‡‘”†‡”ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–ƒ†–Š‡‘–‹…‡‘ˆ†‡ƒ†‹‘”‹‰‹ƒŽǡ
‹ˆƒ›Ǥ

PERIOD OF LIMITATION TO PREFER AN APPEAL [SECTION 249(2)]

Š‡ƒ’’‡ƒŽŠƒ•–‘„‡’”‡•‡–‡†™‹–Š‹–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘ƒ•‰‹˜‡„‡Ž‘™ǣ
1. Appeal by person denying liability to deduct tax in respect of payments payable to non-resident or a
foreign company [Section 249(2)(a)] ǣŠ‡”‡–Š‡ƒ’’‡ƒŽ”‡Žƒ–‡•–‘ƒ›–ƒš†‡†—…–‡†ƒ–•‘—”…‡ˆ”‘’ƒ›‡–
ƒ†‡ –‘ ƒ ‘Ǧ”‡•‹†‡–ǡ ȋ‘–Š‡” –Šƒ ƒ …‘’ƒ›Ȍ ‘” –‘ ƒ ˆ‘”‡‹‰ …‘’ƒ›ǡ ƒ› ‹–‡”‡•–ǡ ‘–Š‡” –Šƒ ‹–‡”‡•– ‘
•‡…—”‹–‹‡•‘”ƒ›‘–Š‡”•—…Šƒ”‰‡ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…‘‡Ǧ–ƒš…–ȋ‘–„‡‹‰•ƒŽƒ”‹‡•Ȍǡ™‹–Š‹͵Ͳ
†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ–ƒš†‡†—…–‡†ƒ–•‘—”…‡–‘–Š‡…”‡†‹–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
2. Appeal against assessment to penalty [Section 249(2)(b)] ǣŠ‡”‡–Š‡ƒ’’‡ƒŽ”‡Žƒ–‡•–‘ƒ›ƒ••‡••‡–‘”
’‡ƒŽ–›‘”†‡”–Š‡ƒ’’‡ƒŽ•Šƒ˜‡–‘„‡’”‡•‡–‡†™‹–Š‹͵Ͳ†ƒ›•‘ˆ–Š‡†ƒ–‡‘ˆ•‡”˜‹…‡‘ˆ–Š‡‘–‹…‡‘ˆ†‡ƒ†”‡Žƒ–‹‰
–‘–Šƒ–ƒ••‡••‡–‘”’‡ƒŽ–›‘”†‡”Ǥ
3. Other appeals [Section 249(2)(c)] ǣƒ›‘–Š‡”…ƒ•‡ǡ–Š‡ƒ’’‡ƒŽŠƒ•–‘„‡’”‡•‡–‡†™‹–Š‹͵Ͳ†ƒ›•‘ˆ–Š‡†ƒ–‡
‘™Š‹…Š‹–‹ƒ–‹‘‘ˆ–Š‡‘”†‡”•‘—‰Š––‘„‡ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–‹••‡”˜‡†‘–Š‡ƒ’’‡ŽŽƒ–Ǥ
…‘’—–‹‰–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘ˆ‘”ƒƒ’’‡ƒŽ‘”ƒƒ’’Ž‹…ƒ–‹‘ǡ–Š‡†ƒ›‘™Š‹…Š–Š‡‘”†‡”‹••‡”˜‡†Šƒ•–‘„‡
‡š…Ž—†‡†Ǥˆ–Š‡ƒ••‡••‡‡™ƒ•‘–ˆ—”‹•Š‡†™‹–Šƒ…‘’›‘ˆ–Š‡‘”†‡”ƒŽ‘‰™‹–Š–Š‡‘–‹…‡‘ˆ–Š‡‘”†‡”ǡ‘”†‡ƒ†ǡ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͺ͹

–Š‡–‹‡”‡“—‹”‡†ˆ‘”‘„–ƒ‹‹‰ƒ…‘’›‘ˆ•—…Š‘”†‡”‹•ƒŽ•‘–‘„‡‡š…Ž—†‡†ƒ†–Š‡†ƒ–‡™‹ŽŽ„‡‡š–‡†‡†„›–Šƒ–
’‡”‹‘†Ǥ–ƒ›„‡‘–‡†–Šƒ–‡˜‡™Š‡”‡–Š‡ƒ••‡••‡‡Šƒ•‘–„‡‡•—’’Ž‹‡†™‹–Š…‘’›‘ˆ–Š‡‘”†‡”…‘…‡”‡†ǡ–Š‡
–‹‡–ƒ‡‹ƒ‹‰ƒƒ’’Ž‹…ƒ–‹‘™Š‹…Š†‘‡•‘–…‘’Ž›™‹–ŠƒŽŽ–Š‡Ž‡‰ƒŽ”‡“—‹”‡‡–•…ƒ‘–„‡‡š…Ž—†‡†
—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ʹ͸ͺǤˆ–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”‘„–ƒ‹‹‰–Š‡…‘’›‘ˆ–Š‡‘”†‡”Šƒ•‘–„‡‡’”‘’‡”Ž›
•–ƒ’‡†‘”Šƒ•„‡‡ƒ†‡„›ƒ’‡”•‘‘–ƒ—–Š‘”‹•‡†–‘†‘•‘ǡ–Š‡–‹‡™Š‹…ŠŠƒ•‡Žƒ’•‡†„‡–™‡‡–Š‡ƒ‹‰‘ˆ
–Š‡ ‹˜ƒŽ‹† ƒ’’Ž‹…ƒ–‹‘ ƒ† ’—––‹‰ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ‹ ‘”†‡” ™‘—Ž† ‘– „‡ ‡š…Ž—†‡† ‹ …‘’—–‹‰ –Š‡ ’‡”‹‘† ‘ˆ
Ž‹‹–ƒ–‹‘Ǥ
ˆƒ›ƒ’’‡ƒŽ‹•ϐ‹Ž‡†ƒˆ–‡”–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘ǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ›ƒ†‹––Š‡ƒ’’‡ƒŽƒˆ–‡”–Š‡•ƒ‹†
’‡”‹‘† ‹ˆ Š‡ ‹• •ƒ–‹•ϐ‹‡† –Šƒ– –Š‡ ƒ’’‡ŽŽƒ– Šƒ† •—ˆϐ‹…‹‡– …ƒ—•‡ ˆ‘” ‘– ’”‡•‡–‹‰ –Š‡ ƒ’’‡ƒŽ ™‹–Š‹ –Šƒ– ’‡”‹‘†
ȏ‡…–‹‘ʹͶͻȋ͵ȌȐǤ—…Š†‡Žƒ›‡†ƒ’’‡ƒŽ•—•–„‡ƒ……‘’ƒ‹‡†„›ƒ…‘†‘ƒ–‹‘’‡–‹–‹‘•Š‘™‹‰ƒ†‡š’Žƒ‹‹‰–Š‡
”‡ƒ•‘Ȁ…ƒ—•‡‘ˆ–Š‡ƒ’’‡ŽŽƒ–ˆ‘”‘–„‡‹‰ƒ„Ž‡–‘ϐ‹Ž‡–Š‡ƒ’’‡ƒŽ™‹–Š‹–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘ƒ†’”ƒ›‹‰ˆ‘”
…‘†‡ƒ–‹‘‘ˆ–Š‡†‡Žƒ›ǤŠ‡’‘™‡”–‘…‘†‘‡–Š‡†‡Žƒ›‹•†‹•…”‡–‹‘ƒ”›ƒ†–Š‡†‹•…”‡–‹‘—•–„‡Œ—†‹…‹‘—•Ž›
‡š‡”…‹•‡†ǤŠ‡†‹•…”‡–‹‘‹•–‘„‡‡š‡”…‹•‡†™Š‡”‡•—ˆϐ‹…‹‡–…ƒ—•‡ˆ‘”‘–’”‡•‡–‹‰–Š‡ƒ’’‡ƒŽ™‹–Š‹–Š‡–‹‡‹•
ƒ†‡‘—–„›–Š‡ƒ’’‡ŽŽƒ–ǤŠ‡’‡”‹‘†ˆ‘”ϐ‹Ž‹‰ƒƒ’’‡ƒŽ…ƒ‘–„‡‡š–‡†‡†•‹’Ž›„‡…ƒ—•‡–Š‡ƒ’’‡ŽŽƒ–ǯ•…ƒ•‡
‹•Šƒ”†ƒ†…ƒŽŽ•ˆ‘”•›’ƒ–Š›‘”‡”‡Ž›‘—–‘ˆ„‡‡˜‘Ž‡…‡–‘–Š‡’ƒ”–›•‡‡‹‰”‡Ž‹‡ˆǤŠ‡•—ˆϐ‹…‹‡–…ƒ—•‡—•–„‡
ƒ…ƒ—•‡™Š‹…Š‹•„‡›‘†–Š‡…‘–”‘Ž‘ˆ–Š‡’ƒ”–›•‡‡‹‰–Š‡…‘†‘ƒ–‹‘‘ˆ–Š‡†‡Žƒ›ǤŽŽ‡••‹••—ˆϐ‹…‹‡–…ƒ—•‡ǡ‹ˆ‹–
…ƒ„‡•Š‘™–Šƒ––Š‡ƒ™ƒ•—––‡”Ž›†‹•ƒ„Ž‡†–‘ƒ––‡†–‘ƒ›†—–›ǤŠ‡…ƒ—•‡ˆ‘”†‡Žƒ›‹ϐ‹Ž‹‰–Š‡ƒ’’‡ƒŽ™Š‹…Šǡ
„› †—‡ …ƒ”‡ ƒ† ƒ––‡–‹‘ …‘—Ž† Šƒ˜‡ „‡‡ ƒ˜‘‹†‡† …ƒ‘– „‡ ƒ •—ˆϐ‹…‹‡– …ƒ—•‡Ǥ ‡‰Ž‹‰‡…‡ ‘ –Š‡ ’ƒ”– ‘ˆ –Š‡
•‡”˜ƒ–•‘”ƒ‰‡–‡–”—•–‡†™‹–Š–Š‡ϐ‹Ž‹‰‘ˆ–Š‡ƒ’’‡ƒŽ…ƒ‘–„‡…‘•‹†‡”‡†ƒ•ƒ•—ˆϐ‹…‹‡–…ƒ—•‡ǤŠ‡…Šƒ‰‡‘ˆ
Ž‡‰ƒŽ•‹–—ƒ–‹‘„”‘—‰Š–ƒ„‘—–„›ƒ†‡…‹•‹‘‘ˆ–Š‡—’”‡‡‘—”–ƒ›„‡˜ƒŽ‹†‰”‘—†ˆ‘”…‘†‘‹‰†‡Žƒ›ǤŠ‡
™‘”†• Dz•—ˆϐ‹…‹‡– …ƒ—•‡dz •Š‘—Ž† ”‡…‡‹˜‡ ƒ Ž‹„‡”ƒŽ ‹–‡”’”‡–ƒ–‹‘ •‘ ƒ• –‘ ƒ†˜ƒ…‡ •—„•–ƒ–‹ƒŽ Œ—•–‹…‡ ™Š‡”‡ ‘
‡‰Ž‹‰‡…‡‘”‹ƒ…–‹‘‘”™ƒ–‘ˆ„‘ƒϐ‹†‡‹•‹’—–ƒ„Ž‡–‘–Š‡ƒ’’Ž‹…ƒ–Ǥ
ƒ’’‡ƒŽ’”‡•‡–‡†ƒˆ–‡”–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘‹••–‹ŽŽƒDzƒ’’‡ƒŽdzƒ†ƒ‘”†‡”†‹•‹••‹‰‹–ƒ•–‹‡„ƒ””‡†‹•‘‡
’ƒ••‡† ‹ ƒ’’‡ƒŽ ȏ—†‡” ‡…–‹‘ ʹͷͲ ƒ† ‘– —†‡” ‡…–‹‘ ʹͶͻȋ͵ȌȐǤ  ƒ’’‡ƒŽ Ž‹‡• –Š‡”‡ˆ”‘ –‘ –Š‡ ’’‡ŽŽƒ–‡
”‹„—ƒŽƒ†–Š‡”‡ƒˆ–‡”–‘–Š‡‹‰Š‘—”–‘ƒ“—‡•–‹‘‘ˆŽƒ™Ǥ
”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– ™Š‡”‡ ƒ ƒ’’Ž‹…ƒ–‹‘ Šƒ• „‡‡ ƒ†‡ —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ʹ͹Ͳǡ –Š‡ ’‡”‹‘†
„‡‰‹‹‰ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡ǡ–‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡‘”†‡””‡Œ‡…–‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘
‹••‡”˜‡†‘–Š‡ƒ••‡••‡‡ǡ•ŠƒŽŽ„‡‡š…Ž—†‡†Ǥ
PAYMENT OF TAX BEFORE FILING APPEAL [SECTION 249(4)]
‘ƒ’’‡ƒŽƒ‰ƒ‹•–ƒ›‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”…ƒ„‡ƒ†‹––‡†„›–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ—Ž‡••
PAYMENT OF TAX BEFORE FILING APPEAL [SECTION 249(4)]
ƒ––Š‡–‹‡‘ˆϐ‹Ž‹‰‘ˆ–Š‡ƒ’’‡ƒŽ–Š‡ƒ••‡••‡‡Šƒ•’ƒ‹†–ƒš†—‡‘–Š‡‹…‘‡”‡–—”‡†„›Š‹ǡ‘”™Š‡”‡–Š‡ƒ••‡••‡‡
Šƒ• ‘– ˆ—”‹•Š‡† –Š‡ ”‡–—” ‘ˆ ‹…‘‡ǡ Š‡ Šƒ• ’ƒ‹† ƒ ƒ‘—– ‡“—ƒŽ –‘ –Š‡ ƒ‘—– ‘ˆ ƒ†˜ƒ…‡ –ƒš ™Š‹…Š ™ƒ•
’ƒ›ƒ„Ž‡„›Š‹Ǥˆ–Š‡ƒ’’‡ŽŽƒ–™ƒ–•‡š‡’–‹‘ˆ”‘–Š‡’ƒ›‡–‘ˆ•—…Š–ƒšŠ‡Šƒ•–‘ƒ‡ƒƒ’’Ž‹…ƒ–‹‘–‘–Š‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ™Š‘‹•‡’‘™‡”‡†–‘™ƒ‹˜‡–Š‹•”‡“—‹”‡‡–‹ƒ’’”‘’”‹ƒ–‡…ƒ•‡•‹ˆŠ‡‹••ƒ–‹•ϐ‹‡†–Šƒ–
–Š‡”‡ƒ”‡‰‘‘†ƒ†•—ˆϐ‹…‹‡–”‡ƒ•‘•ˆ‘”†‘‹‰•‘Ǥ•—…Š…ƒ•‡•ǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‹•”‡“—‹”‡†–‘”‡…‘”†
•—…Š”‡ƒ•‘•‹™”‹–‹‰Ǥ–ƒ›„‡‘–‡†–Šƒ–…‘‡Ǧ–ƒšŽƒ™”‡“—‹”‡•‘Ž›–Š‡’ƒ›‡–‘ˆ–ƒš„‡ˆ‘”‡–Š‡ϐ‹Ž‹‰‘ˆ–Š‡
ƒ’’‡ƒŽ ƒ†‘– –Š‡’ƒ›‡– ‘ˆƒ› ’‡ƒŽ–› ‘”ƒ› ‘–Š‡”•—’ƒ›ƒ„Ž‡ „› –Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ–Š‡‘”†‡”
ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–Ǥ
PROCEDURE FOR FILING AN APPEAL [SECTION 250]
‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ•ŠƒŽŽϐ‹šƒ†ƒ›ƒ†’Žƒ…‡ˆ‘”–Š‡Š‡ƒ”‹‰‘ˆ–Š‡ƒ’’‡ƒŽƒ†•ŠƒŽŽ‰‹˜‡‘–‹…‡‘ˆ–Š‡•ƒ‡–‘
PROCEDURE IN APPEAL [SECTION 250]
–Š‡ƒ’’‡ŽŽƒ–ƒ†–‘–Š‡••‡••‹‰ˆϐ‹…‡”ƒ‰ƒ‹•–™Š‘•‡‘”†‡”–Š‡ƒ’’‡ƒŽ‹•’”‡ˆ‡””‡†Ǥ
Š‡ˆ‘ŽŽ‘™‹‰•ŠƒŽŽŠƒ˜‡–Š‡”‹‰Š––‘„‡Š‡ƒ”†ƒ––Š‡Š‡ƒ”‹‰‘ˆ–Š‡ƒ’’‡ƒŽǣ
ȋƒȌ Š‡ƒ’’‡ŽŽƒ–ǡ‡‹–Š‡”‹’‡”•‘‘”„›ƒƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
ȋ„Ȍ Š‡••‡••‹‰ˆϐ‹…‡”ǡ‡‹–Š‡”‹’‡”•‘‘”„›ƒ”‡’”‡•‡–ƒ–‹˜‡Ǥ
Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ•ŠƒŽŽŠƒ˜‡–Š‡’‘™‡”–‘ƒ†Œ‘—”–Š‡Š‡ƒ”‹‰‘ˆ–Š‡ƒ’’‡ƒŽ•ˆ”‘–‹‡–‘–‹‡Ǥ‡ƒ›ǡ
„‡ˆ‘”‡†‹•’‘•‹‰‘ˆƒ›ƒ’’‡ƒŽǡƒ‡•—…Šˆ—”–Š‡”‡“—‹”›ƒ•Š‡†‡‡•ϐ‹–ǡ‘”ƒ›†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘
ƒ‡ˆ—”–Š‡”‡“—‹”›ƒ†”‡’‘”–ƒ•Š‡†‡‡•ϐ‹–ǡ‘”ƒ›†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘ƒ‡ˆ—”–Š‡”‡“—‹”›ƒ†
”‡’‘”––Š‡”‡•—Ž–‘ˆ–Š‡•ƒ‡–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤ
 ͷͺͺ Lesson 10 Ȉ EP-TL

Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ›ǡƒ––Š‡Š‡ƒ”‹‰‘ˆƒƒ’’‡ƒŽǡƒŽŽ‘™–Š‡ƒ’’‡ŽŽƒ––‘‰‘‹–‘ƒ›‰”‘—†‘ˆƒ’’‡ƒŽ
‘–•’‡…‹ϐ‹‡†‹–Š‡‰”‘—†•‘ˆƒ’’‡ƒŽ‹ˆŠ‡‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡‘‹••‹‘‘ˆ–Šƒ–‰”‘—†ˆ”‘–Š‡ˆ‘”‘ˆƒ’’‡ƒŽ™ƒ•
‘– ™‹ŽŽˆ—Ž ‘” —”‡ƒ•‘ƒ„Ž‡Ǥ ‹• ‘”†‡” †‹•’‘•‹‰ ‘ˆ –Š‡ ƒ’’‡ƒŽ •ŠƒŽŽ „‡ ‹ ™”‹–‹‰ ƒ† •ŠƒŽŽ •–ƒ–‡ –Š‡ ’‘‹–• ˆ‘”
†‡–‡”‹ƒ–‹‘ǡ–Š‡†‡…‹•‹‘–Š‡”‡‘ƒ†–Š‡”‡ƒ•‘•ˆ‘”–Š‡†‡…‹•‹‘Ǥ‡˜‡”›ƒ’’‡ƒŽǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽȌǡ
™Š‡”‡‹–‹•’‘••‹„Ž‡ǡƒ›Š‡ƒ”ƒ††‡…‹†‡•—…Šƒ’’‡ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆ‘‡›‡ƒ”ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”
‹ ™Š‹…Š •—…Š ƒ’’‡ƒŽ ‹• ϐ‹Ž‡† „‡ˆ‘”‡ Š‹ ‘‹••‹‘‡” ȋ’’‡ƒŽȌ —†‡” ‡…–‹‘ ʹͶ͸ȋͳȌǤ  –Š‡ †‹•’‘•ƒŽ ‘ˆ –Š‡
ƒ’’‡ƒŽǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ•ŠƒŽŽ…‘—‹…ƒ–‡–Š‡‘”†‡”’ƒ••‡†„›Š‹–‘–Š‡ƒ••‡••‡‡ƒ†–‘–Š‡Š‹‡ˆ
‘‹••‹‘‡”‘”‘‹••‹‘‡”Ǥ
’’‡ƒŽ „› …‘‡ –ƒš †‡’ƒ”–‡– •ŠƒŽŽ „‡ ϐ‹Ž‡† „‡ˆ‘”‡ ƒ’’‡ŽŽƒ–‡ ”‹„—ƒŽǡ ‹‰Š ‘—”– ƒ† —’”‡‡ ‘—”– ‘Ž›
™Š‡”‡–Š‡–ƒš‡ˆˆ‡…–‘ˆƒ’’‡ƒŽ‡š…‡‡†•–Š‡ˆ‘ŽŽ‘™‹‰‘‡–ƒ”›Ž‹‹–•ǣ

’’‡ƒŽ‹…‘‡–ƒšƒ––‡” ‘‡–ƒ”›‹‹–

‡ˆ‘”‡ ͷͲǡͲͲǡͲͲͲ
‡ˆ‘”‡‹‰Š‘—”– ͳǡͲͲǡͲͲǡͲͲͲ
‡ˆ‘”‡—’”‡‡‘—”– ʹǡͲͲǡͲͲǡͲͲͲ

E-Appeal: ‡†‡–Šƒ•„‡‡ƒ†‡˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲ„›‹•‡”–‹‰•—„Ǧ•‡…–‹‘ʹͷͲȋ͸Ȍ‘ˆ–Š‡…‘‡Ǧ

–ƒš…–ǡͳͻ͸ͳ–‘’”‘˜‹†‡–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ ’‘™‡”‹‰‡–”ƒŽ
‘˜‡”‡––‘‘–‹ˆ›ƒ‡Ǧƒ’’‡ƒŽ•…Š‡‡ˆ‘”†‹•’‘•ƒŽ‘ˆƒ’’‡ƒŽ•‘ƒ•–‘‹’ƒ”–‰”‡ƒ–‡”
‡ˆϐ‹…‹‡…›ǡ–”ƒ•’ƒ”‡…›ƒ†ƒ……‘—–ƒ„‹Ž‹–›Ǥ
Ȉ Ž‹‹ƒ–‹‰–Š‡‹–‡”ˆƒ…‡„‡–™‡‡–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ†–Š‡ƒ’’‡ŽŽƒ–‹–Š‡…‘—”•‡‘ˆƒ’’‡ŽŽƒ–‡
’”‘…‡‡†‹‰•–‘–Š‡‡š–‡––‡…Š‘Ž‘‰‹…ƒŽŽ›ˆ‡ƒ•‹„Ž‡Ǥ
Ȉ ’–‹‹œ‹‰—–‹Ž‹œƒ–‹‘‘ˆ–Š‡”‡•‘—”…‡•–Š”‘—‰Š‡…‘‘‹‡•‘ˆ•…ƒŽ‡ƒ†ˆ—…–‹‘ƒŽ•’‡…‹ƒŽ‹•ƒ–‹‘Ǥ
Ȉ –”‘†—…‹‰ƒƒ’’‡ŽŽƒ–‡•›•–‡™‹–Š†›ƒ‹…Œ—”‹•†‹…–‹‘‹™Š‹…Šƒ’’‡ƒŽ•ŠƒŽŽ„‡†‹•’‘•‡†‘ˆ„›‘‡‘”
‘”‡‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤ
–ƒŽ•‘‡’‘™‡”‡†–Š‡‡–”ƒŽ
‘˜‡”‡–ǡˆ‘”–Š‡’—”’‘•‡‘ˆ‰‹˜‹‰‡ˆˆ‡…––‘–Š‡•…Š‡‡ƒ†‡—†‡”–Š‡’”‘’‘•‡†
•—„Ǧ•‡…–‹‘ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ–‘†‹”‡…––Šƒ–ƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–”‡Žƒ–‹‰–‘Œ—”‹•†‹…–‹‘
ƒ† ’”‘…‡†—”‡ ‘ˆ †‹•’‘•ƒŽ ‘ˆ ƒ’’‡ƒŽ •ŠƒŽŽ ‘– ƒ’’Ž› ‘” •ŠƒŽŽ ƒ’’Ž› ™‹–Š •—…Š ‡š…‡’–‹‘•ǡ ‘†‹ϐ‹…ƒ–‹‘• ƒ†
ƒ†ƒ’–ƒ–‹‘•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘Ǥ—…Š†‹”‡…–‹‘•ƒ”‡–‘„‡‹••—‡†‘‘”„‡ˆ‘”‡͵ͳ•–ƒ”…ŠʹͲʹʹǤ
–‹•’”‘’‘•‡†–Šƒ–‡˜‡”›‘–‹ϐ‹…ƒ–‹‘‹••—‡†•ŠƒŽŽ„‡”‡“—‹”‡†–‘„‡Žƒ‹†„‡ˆ‘”‡‡ƒ…Š‘—•‡‘ˆƒ”Ž‹ƒ‡–Ǥ

This amendment will take effect from 1st April, 2020

FACELESS APPEAL [SECTION 250(6B)]

Š‹•…Š‡‡ƒ›„‡…ƒŽŽ‡†–Š‡ ƒ…‡Ž‡••’’‡ƒŽ…Š‡‡ǡʹͲʹͲǤŠ‡ƒ’’‡ƒŽ—†‡”–Š‹•…Š‡‡•ŠƒŽŽ„‡†‹•’‘•‡†‘ˆ‹
”‡•’‡…–‘ˆ•—…Š–‡””‹–‘”‹ƒŽƒ”‡ƒ‘”’‡”•‘•‘”…Žƒ••‘ˆ’‡”•‘•‘”‹…‘‡•‘”…Žƒ••‘ˆ‹…‘‡•‘”…ƒ•‡•‘”…Žƒ••‘ˆ
…ƒ•‡•ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†„›–Š‡‘ƒ”†Ǥ

File Appeal

–ƒš’ƒ›‡”…ƒϐ‹Ž‡ƒƒ’’‡ƒŽ–Š”‘—‰ŠŠ‹•”‡‰‹•–‡”‡†ƒ……‘—–‘–Š‡…‘‡ƒš‡Ǧϐ‹Ž‹‰’‘”–ƒŽǤ

Processing of Appeal

Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽƒ••‹‰–Š‡ƒ’’‡ƒŽ–‘ƒ•’‡…‹ϐ‹…ƒ’’‡ƒŽ—‹–‹ƒ›‘‡‡‰‹‘ƒŽ ƒ…‡Ž‡••

’’‡ƒŽ‡–”‡–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡Ǥ
Ȉ ˆ–Š‡ƒ’’‡ŽŽƒ–Šƒ•ϐ‹Ž‡†–Š‡ƒ’’‡ƒŽƒˆ–‡”–Š‡‡š’‹”ƒ–‹‘‘ˆ–Š‡–‹‡•’‡…‹ϐ‹‡†‹•‡…–‹‘ʹͶͻ‘ˆ–Š‡…‘‡Ǧ–ƒš
…–ǡ–Š‡ƒ’’‡ƒŽ—‹–ƒˆ–‡”–Š‡˜‡”‹ϐ‹…ƒ–‹‘™‹ŽŽƒ†‹––Š‡‘””‡Œ‡…––Š‡ƒ’’‡ƒŽǡ—†‡”‹–‹ƒ–‹‘–‘–Š‡ƒ–‹‘ƒŽ
ƒ…‡Ž‡••’’‡ƒŽ‡–”‡Ǥ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͺͻ

Ȉ ˆ–Š‡ƒ’’‡ŽŽƒ–Šƒ•ƒ’’Ž‹‡†ˆ‘”‡š‡’–‹‘ˆ”‘–Š‡‘’‡”ƒ–‹‘‘ˆ…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ʹͶͻ
‘ˆ–Š‡…‘‡Ǧ–ƒš…–ǡ–Š‡ƒ’’‡ƒŽ—‹–™‹ŽŽƒ†‹––Š‡ƒ’’‡ƒŽƒ†‡š‡’––Š‡–ƒš’ƒ›‡”ˆ”‘–Š‡‘’‡”ƒ–‹‘ƒ›
‰‘‘†ƒ†•—ˆϐ‹…‹‡–”‡ƒ•‘™‹ŽŽ„‡”‡…‘”†‡†‹™”‹–‹‰Ǣ
Š‡ ƒ–‹‘ƒŽ ƒ…‡Ž‡•• ’’‡ƒŽ ‡–”‡ ™‹ŽŽ ‹–‹ƒ–‡ –Š‡ ƒ†‹••‹‘ ‘” ”‡Œ‡…–‹‘ ‘ˆ –Š‡ ƒ’’‡ƒŽǡ –‘ –Š‡ ƒ’’‡ŽŽƒ–
ȋ–ƒš’ƒ›‡”ȌǤˆ –Š‡ ƒ’’‡ƒŽ ‹•ƒ†‹––‡†ǡ –Š‡ ƒ’’‡ƒŽ —‹– ™‹ŽŽ ”‡“—‡•– –Š‡ ƒ–‹‘ƒŽ ƒ…‡Ž‡•• ’’‡ƒŽ ‡–”‡ –‘ ‘„–ƒ‹
ˆ—”–Š‡”‹ˆ‘”ƒ–‹‘ǡƒ†‘…—‡–ˆ”‘–Š‡ƒ’’‡ŽŽƒ–ǤŠ‡ƒ’’‡ŽŽƒ–‡‡†–‘ϐ‹Ž‡ƒ”‡•’‘•‡–‘–Š‡‘–‹…‡™‹–Š‹–Š‡
†ƒ–‡ƒ†–‹‡•’‡…‹ϐ‹‡†ǡ™‹–Š–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡Ǥ
Š‡ƒ–‹‘ƒŽ‡Ǧ••‡••‡–‡–”‡‘”–Š‡••‡••‹‰ˆϐ‹…‡”™‹ŽŽˆ—”‹•Šƒ”‡’‘”–‹”‡•’‘•‡–‘–Š‡‘–‹…‡™‹–Š‹–Š‡
†ƒ–‡ƒ†–‹‡’”‡•…”‹„‡†–‘–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡Ǥˆ–Š‡”‡•’‘•‡‹•ϐ‹Ž‡†„›–Š‡ƒ’’‡ŽŽƒ–‘”ƒ”‡’‘”–
‹•ˆ—”‹•Š‡†„›–Š‡ƒ–‹‘ƒŽ‡Ǧ••‡••‡–‡–”‡ǡ–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽ•‡†•—…Š”‡•’‘•‡–‘
–Š‡ƒ’’‡ƒŽ—‹–Ǥ

Filing of Additional ground of Appeal

Š‡ƒ’’‡ŽŽƒ–…ƒϐ‹Ž‡ƒ††‹–‹‘ƒŽ‰”‘—†•‘ˆƒ’’‡ƒŽǡ•’‡…‹ˆ›‹‰–Š‡”‡ƒ•‘ˆ‘”–Š‡‘‹••‹‘‘ˆ‰”‘—†‹–Š‡ƒ’’‡ƒŽ
ϐ‹Ž‡†„›Š‹ǤŠ‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽ‹–‹ƒ–‡–Š‡ƒ†‹••‹‘‘””‡Œ‡…–‹‘‘ˆ–Š‡ƒ††‹–‹‘ƒŽ‰”‘—†ǡ
–‘–Š‡ƒ’’‡ŽŽƒ–„ƒ•‡†‘–Š‡˜‡”‹ϐ‹…ƒ–‹‘”‡’‘”–•—„‹––‡†„›–Š‡ƒ–‹‘ƒŽ‡Ǧ••‡••‡–‡–”‡‘”–Š‡••‡••‹‰
ˆϐ‹…‡”ƒ†–Š‡ƒ’’‡ƒŽ—‹–Ǥ
Š‡ƒ’’‡ŽŽƒ–™‹ŽŽϐ‹Ž‡ƒ††‹–‹‘ƒŽ‡˜‹†‡…‡ǡ‘–Š‡”–Šƒ–Š‡‡˜‹†‡…‡’”‘†—…‡†„›Š‹†—”‹‰’”‘…‡‡†‹‰•„‡ˆ‘”‡–Š‡
ƒ–‹‘ƒŽ‡Ǧ••‡••‡–‡–”‡‘”–Š‡••‡••‹‰ˆϐ‹…‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹•—…Šˆ‘”ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†„›–Š‡
ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡ǡ•’‡…‹ˆ›‹‰–Š‡”‡‹ƒ•–‘Š‘™Š‹•…ƒ•‡‹•…‘˜‡”‡†„›–Š‡‡š…‡’–‹‘ƒŽ…‹”…—•–ƒ…‡•
•’‡…‹ϐ‹‡†‹•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡Ͷ͸‘ˆ–Š‡—Ž‡•Ǥ

Processing of Additional Evidence

Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽ•‡†–Š‡ƒ††‹–‹‘ƒŽ‡˜‹†‡…‡–‘–Š‡ƒ–‹‘ƒŽ‡Ǧ••‡••‡–‡–”‡‘”–Š‡
••‡••‹‰ˆϐ‹…‡”ˆ‘”ˆ—”‹•Š‹‰ƒ”‡’‘”–™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡Ǥˆ–‡”–Š‡˜‡”‹ϐ‹…ƒ–‹‘ǡ–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••
’’‡ƒŽ ‡–”‡ ™‹ŽŽ ‹–‹ƒ–‡ –Š‡ ƒ†‹••‹‘ ‘” ”‡Œ‡…–‹‘ ‘ˆ ƒ††‹–‹‘ƒŽ ‡˜‹†‡…‡ –‘ –Š‡ ƒ’’‡ŽŽƒ– ƒ† –Š‡ ƒ–‹‘ƒŽ
‡Ǧ••‡••‡–‡–”‡‘”–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ
Ȉ ˆ–Š‡ƒ’’‡ƒŽ—‹–‹–‡†•–‘‡Šƒ…‡ƒƒ••‡••‡–‘”ƒ’‡ƒŽ–›‘””‡†—…‡–Š‡ƒ‘—–‘ˆ”‡ˆ—†ǡ–Š‡ƒ’’‡ƒŽ
—‹–™‹ŽŽ’”‡’ƒ”‡ƒ•Š‘™Ǧ…ƒ—•‡‘–‹…‡…‘–ƒ‹‹‰–Š‡”‡ƒ•‘•ˆ‘”–Š‡‡Šƒ…‡‡–‘””‡†—…–‹‘ǡƒ†•‡†
•—…Š‘–‹…‡–‘–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡
Ȉ Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽ•‡”˜‡–Š‡‘–‹…‡—’‘–Š‡ƒ’’‡ŽŽƒ–ǤŠ‡ƒ’’‡ŽŽƒ–‡‡†•–‘ϐ‹Ž‡Š‹•
”‡•’‘•‡–‘–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡Ǥ
Ȉ ˆƒ”‡•’‘•‡‹•ϐ‹Ž‡†„›–Š‡ƒ’’‡ŽŽƒ–ǡ–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽ•‡†•—…Šƒ”‡•’‘•‡–‘–Š‡
ƒ’’‡ƒŽ—‹–ƒ†‹ˆ‘”–Š‡ƒ’’‡ŽŽƒ–Ǥ
Preparation of Draft Order

Š‡ƒ’’‡ƒŽ—‹–™‹ŽŽ’”‡’ƒ”‡ƒ†”ƒˆ–‘”†‡”ƒˆ–‡”˜‡”‹ˆ›‹‰ƒŽŽ–Š‡”‡Ž‡˜ƒ–ƒ–‡”‹ƒŽƒ˜ƒ‹Žƒ„Ž‡‘–Š‡”‡…‘”†ǡ‹…Ž—†‹‰
–Š‡”‡•’‘•‡ϐ‹Ž‡†ǡ”‡’‘”–ˆ—”‹•Š‡†„›–Š‡ƒ–‹‘ƒŽ‡Ǧ••‡••‡–‡–”‡ǤŠ‡†”ƒˆ–‘”†‡”™‹ŽŽ„‡•‡––‘–Š‡ƒ–‹‘ƒŽ
ƒ…‡Ž‡••’’‡ƒŽ‡–”‡ƒŽ‘‰™‹–Š–Š‡†‡–ƒ‹Ž•‘ˆ–Š‡’‡ƒŽ–›’”‘…‡‡†‹‰•Ǥ
Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡•ŠƒŽŽ—’‘”‡…‡‹’–‘ˆ–Š‡†”ƒˆ–‘”†‡”ǡ™‹ŽŽ•‡†–Š‡†‡–ƒ‹Ž••—…Šƒ•–Š‡ƒ‰‰”‡‰ƒ–‡
ƒ‘—–‘ˆ–ƒšǡ’‡ƒŽ–›ǡ‹–‡”‡•–ǡ‹…Ž—†‹‰•—”…Šƒ”‰‡ƒ†…‡••ǡ’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ‹••—‡•†‹•’—–‡†‹ƒ’’‡ƒŽ–‘–Š‡
‡‰‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡–Š”‘—‰Šƒƒ—–‘ƒ–‡†ƒŽŽ‘…ƒ–‹‘•›•–‡ǡˆ‘”…‘†—…–‹‰ƒ”‡˜‹‡™‘ˆ–Š‡‘”†‡”Ǥ

Finalization of the Appeal

‡‰‹‘ƒŽ ƒ…‡Ž‡•• ’’‡ƒŽ ‡–”‡ ™‹ŽŽ ϐ‹ƒŽ‹œ‡ –Š‡ ƒ’’‡ƒŽ ƒ• ’‡” –Š‡ †”ƒˆ– ‘”†‡” ƒ† •‡† –Š‡ †”ƒˆ– ‘”†‡” –‘ ƒ
ƒ’’‡ƒŽ‹‰—‹–ˆ‘”ˆ—”–Š‡”’”‘…‡••‹‰Ǥˆ–‡”‡šƒ‹ƒ–‹‘‘ˆ–Š‡†”ƒˆ–‘”†‡”ǡ–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡™‹ŽŽ
ϐ‹ƒŽ‹œ‡ –Š‡ ƒ’’‡ƒŽ —’‘ ”‡…‡‹’– ‘ˆ –Š‡ ”‡˜‹•‡† †”ƒˆ– ‘”†‡” ƒ† ’ƒ•• –Š‡ ƒ’’‡ƒŽ ‘”†‡”Ǥ ƒ–‹‘ƒŽ ƒ…‡Ž‡•• ’’‡ƒŽ
‡–”‡™‹ŽŽ…‘—‹…ƒ–‡–Š‡ƒ’’‡ƒŽ‘”†‡”–‘–Š‡ƒ’’‡ŽŽƒ–ȋ–ƒš’ƒ›‡”ȌǤ
 ͷͻͲ Lesson 10 Ȉ EP-TL

Faceless Appeal Centres

‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Š‡‡ǡ–Š‡‘ƒ”†ƒ›•‡–—’Ǧ
‹Ǥ ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡–‘ˆƒ…‹Ž‹–ƒ–‡–Š‡…‘†—…–‘ˆ‡Ǧƒ’’‡ƒŽ’”‘…‡‡†‹‰•‹ƒ…‡–”ƒŽ‹•‡†ƒ‡”ǡ
™Š‹…Š•ŠƒŽŽ„‡˜‡•–‡†™‹–Š–Š‡Œ—”‹•†‹…–‹‘–‘†‹•’‘•‡ƒ’’‡ƒŽ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…Š‡‡Ǣ
‹‹Ǥ ‡‰‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡•ƒ•‹–ƒ›†‡‡‡…‡••ƒ”›–‘ˆƒ…‹Ž‹–ƒ–‡–Š‡…‘†—…–‘ˆ‡Ǧƒ’’‡ƒŽ’”‘…‡‡†‹‰•ǡ
™Š‹…Š•ŠƒŽŽ„‡˜‡•–‡†™‹–Š–Š‡Œ—”‹•†‹…–‹‘–‘†‹•’‘•‡ƒ’’‡ƒŽ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…Š‡‡Ǣ
‹‹‹Ǥ ’’‡ƒŽ —‹–•ǡ ƒ• ‹– ƒ› †‡‡ ‡…‡••ƒ”› –‘ ˆƒ…‹Ž‹–ƒ–‡ –Š‡ …‘†—…– ‘ˆ ‡Ǧƒ’’‡ƒŽ ’”‘…‡‡†‹‰•ǡ –‘ ’‡”ˆ‘” –Š‡
ˆ—…–‹‘‘ˆ†‹•’‘•‹‰ƒ’’‡ƒŽǡ™Š‹…Š‹…Ž—†‡•ƒ†‹––‹‰ƒ††‹–‹‘ƒŽ‰”‘—†•‘ˆƒ’’‡ƒŽǡƒ‹‰•—…Šˆ—”–Š‡”
‹“—‹”›ƒ•–Š‹•ϐ‹–ǡ†‹”‡…–‹‰–Š‡ȏƒ–‹‘ƒŽ ƒ…‡Ž‡••••‡••‡–‡–”‡Ȑ‘”–Š‡••‡••‹‰ˆϐ‹…‡”ǡƒ•–Š‡…ƒ•‡
ƒ› „‡ǡ ˆ‘” ƒ‹‰ ˆ—”–Š‡” ‹“—‹”›ǡ •‡‡‹‰ ‹ˆ‘”ƒ–‹‘ ‘” …Žƒ”‹ϐ‹…ƒ–‹‘ ‘ ƒ†‹––‡† ‰”‘—†• ‘ˆ ƒ’’‡ƒŽǡ
’”‘˜‹†‹‰‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†–‘–Š‡ƒ’’‡ŽŽƒ–ǡƒƒŽ›•‹•‘ˆ–Š‡ƒ–‡”‹ƒŽˆ—”‹•Š‡†„›–Š‡ƒ’’‡ŽŽƒ–ǡ
”‡˜‹‡™‘ˆ†”ƒˆ–‘”†‡”ǡƒ†•—…Š‘–Š‡”ˆ—…–‹‘•ƒ•ƒ›„‡”‡“—‹”‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Š‡‡Ǣ
ƒ†•’‡…‹ˆ›–Š‡‹””‡•’‡…–‹˜‡Œ—”‹•†‹…–‹‘Ǥ
ŽŽ …‘—‹…ƒ–‹‘ „‡–™‡‡ –Š‡ ƒ’’‡ƒŽ —‹– ƒ† –Š‡ ƒ’’‡ŽŽƒ– ‘” ƒ› ‘–Š‡” ’‡”•‘ ‘” –Š‡ ȏƒ–‹‘ƒŽ ƒ…‡Ž‡••
••‡••‡–‡–”‡Ȑ‘”–Š‡••‡••‹‰ˆϐ‹…‡”™‹–Š”‡•’‡…––‘–Š‡‹ˆ‘”ƒ–‹‘‘”†‘…—‡–•‘”‡˜‹†‡…‡‘”ƒ›‘–Š‡”
†‡–ƒ‹Ž•ǡƒ•ƒ›„‡‡…‡••ƒ”›—†‡”–Š‹•…Š‡‡•ŠƒŽŽ„‡–Š”‘—‰Š–Š‡ƒ–‹‘ƒŽ ƒ…‡Ž‡••’’‡ƒŽ‡–”‡Ǥ
POWERS OF THE COMMISSIONER (APPEALS) [SECTION 251]
†‹•’‘•‹‰‘ˆƒƒ’’‡ƒŽǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ•ŠƒŽŽŠƒ˜‡–Š‡ˆ‘ŽŽ‘™‹‰’‘™‡”•ǣ
ͳǤ ƒƒ’’‡ƒŽƒ‰ƒ‹•–ƒ‘”†‡”‘ˆƒ••‡••‡–ǡŠ‡ƒ›…‘ϐ‹”ǡ”‡†—…‡ǡ‡Šƒ…‡‘”ƒ—Ž–Š‡ƒ••‡••‡–Ǥ
ʹǤ ƒƒ’’‡ƒŽƒ‰ƒ‹•–ƒ‘”†‡”‹’‘•‹‰ƒ’‡ƒŽ–›ǡŠ‡ƒ›…‘ϐ‹”‘”…ƒ…‡Ž•—…Š‘”†‡”‘”˜ƒ”›‹–•‘ƒ•–‘
‡‹–Š‡”‡Šƒ…‡‘””‡†—…‡–Š‡’‡ƒŽ–›Ǥ
͵Ǥ ƒ›‘–Š‡”…ƒ•‡ǡŠ‡ƒ›’ƒ•••—…Š‘”†‡”•‹–Š‡ƒ’’‡ƒŽƒ•Š‡†‡‡•ϐ‹–Ǥ
Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ•ŠƒŽŽ‘–‡Šƒ…‡ƒƒ••‡••‡–‘”ƒ’‡ƒŽ–›‘””‡†—…‡–Š‡ƒ‘—–‘ˆ”‡ˆ—†—Ž‡••
–Š‡ƒ’’‡ŽŽƒ–Šƒ•Šƒ†ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ•Š‘™‹‰…ƒ—•‡ƒ‰ƒ‹•–•—…Š‡Šƒ…‡‡–‘””‡†—…–‹‘Ǥ
Š‹Ž‡ †‹•’‘•‹‰ ƒ ƒ’’‡ƒŽǡ –Š‡ ‘‹••‹‘‡” ȋ’’‡ƒŽ•Ȍ ƒ› …‘•‹†‡” ƒ† †‡…‹†‡ –Š‡ ˆƒ…–• ƒ”‹•‹‰ ‘—– ‘ˆ –Š‡
’”‘…‡‡†‹‰•™Š‹…Š‹”‡•’‡…–‘ˆ‘”†‡”ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–™‡”‡…ƒ””‹‡†‘–™‹–Š•–ƒ†‹‰–Šƒ–•—…Šƒ––‡”™ƒ•‘–
”ƒ‹•‡†„‡ˆ‘”‡–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ„›–Š‡ƒ’’‡ŽŽƒ–Ǥ
ƒƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆƒ••‡••‡–‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡’”‘…‡‡†‹‰•„‡ˆ‘”‡–Š‡‡––Ž‡‡–‘‹••‹‘
ƒ„ƒ–‡•—†‡”–Š‡•‡…–‹‘ʹͶͷǡ–Š‡‘‹••‹‘‡”ȋƒ’’‡ƒŽ•Ȍ…ƒ…‘ϐ‹”ǡ”‡†—…‡ǡ‡Šƒ…‡‘”ƒ—Ž–Š‡ƒ••‡••‡–
ƒˆ–‡”–ƒ‹‰‹–‘…‘•‹†‡”ƒ–‹‘‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰Ǧ
ͳǤ –Š‡ƒ–‡”‹ƒŽƒ†‘–Š‡”‹ˆ‘”ƒ–‹‘’”‘†—…‡†„›–Š‡ƒ••‡••‡‡„‡ˆ‘”‡–Š‡‡––Ž‡‡–‘‹••‹‘
ʹǤ –Š‡”‡•—Ž–•‘ˆ–Š‡‡“—‹”›Š‡Ž†„›–Š‡‡––Ž‡‡–‘‹••‹‘
͵Ǥ –Š‡‡˜‹†‡…‡”‡…‘”†‡†„›–Š‡‡––Ž‡‡–…‘‹••‹‘‹–Š‡…‘—”•‡‘ˆ’”‘…‡‡†‹‰•„‡ˆ‘”‡‹–
ͶǤ •—…Š‘–Š‡”ƒ–‡”‹ƒŽƒ•ƒ›„‡„”‘—‰Š–‘Š‹•”‡…‘”†Ǥ
APPELLATE TRIBUNAL [SECTION 252]
Š‡ ‡–”ƒŽ
‘˜‡”‡– •ŠƒŽŽ …‘•–‹–—–‡ ƒ ’’‡ŽŽƒ–‡ ”‹„—ƒŽ …‘•‹•–‹‰ ‘ˆ ƒ• ƒ› Œ—†‹…‹ƒŽ ƒ† ƒ……‘—–ƒ–
‡„‡”•ƒ•‹––Š‹•ϐ‹––‘‡š‡”…‹•‡–Š‡’‘™‡”•ƒ††‹•…Šƒ”‰‡–Š‡ˆ—…–‹‘•…‘ˆ‡””‡†‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ„›
–Š‹•…–ǤŠ‡‹•…‘•–‹–—–‡†ƒ†™‘”•—†‡”–Š‡‹‹•–”›‘ˆƒ™Ǥ–‹•–Š—•ƒ„‘†›‘—–•‹†‡–Š‡ƒ†‹‹•–”ƒ–‹˜‡
…‘–”‘Ž‘ˆ–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•Ǥ
Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ‹•‘–ƒ…‘‡Ǧ–ƒš—–Š‘”‹–›‹–Š‡•‡•‡‘ˆ„‡‹‰ƒ‹–‡‰”ƒŽ’ƒ”–‘ˆ–Š‡†‡’ƒ”–‡–Ǥ
–Š‡ …‘–”ƒ”›ǡ „› ‹–• …‘•–‹–—–‹‘ǡ ’‘™‡”• ƒ† Œ—”‹•†‹…–‹‘ǡ ‘– –‘ •’‡ƒ ‘ˆ –Š‡ ƒ‡” ‘ˆ –Š‡‹” ”‡…”—‹–‡–ǡ –Š‡
”‹„—ƒŽ‹•ƒ‹†‡’‡†‡–ƒ”„‹–”ƒŽ–”‹„—ƒŽǤŠ‡’”‘…‡‡†‹‰•„‡ˆ‘”‡‹–ƒ”‡ƒ†˜‹•‘”›Ǥ–Šƒ•ƒŽ•‘–Š‡–”ƒ’’‹‰•‘ˆƒ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͻͳ

Œ—†‹…‹ƒŽ„‘†›‹–Š‡•‡•‡–Šƒ–‹–Šƒ•–‘†‡ƒŽ™‹–Š–Š‡‡’ƒ”–‡–‘–Š‡‘‡•‹†‡ǡƒ†–Š‡ƒ••‡••‡‡‘–Š‡‘–Š‡”‹
ƒ•—…Šƒ•–Š‡›ˆƒ…‡‡ƒ…Š‘–Š‡”ƒ•‘’’‘•‹‰’ƒ”–‹‡•Ǥ•—…Šƒ•‹–—ƒ–‹‘–Š‡”‹„—ƒŽŠƒ•–‘†‡…‹†‡‘Ž›–Š‘•‡‹••—‡•
™Š‹…Šƒ”‡’”‘’‡”Ž›”ƒ‹•‡†„‡ˆ‘”‡‹–„›–Š‡‘‡‘”–Š‡‘–Š‡”’ƒ”–›‹–Š‡ƒ’’‡ƒŽ‘”‹–Š‡…”‘••‘„Œ‡…–‹‘•Ǥ†‡”–Š‡
…–ǡ –Š‡ ”‹„—ƒŽ Šƒ• ‰‘– –‘ †‡…‹†‡ ƒ ƒ’’‡ƒŽ ƒ† ‘– ‡”‡Ž› ‰‹˜‡ ‹– ƒ †‹•’‘•ƒŽ „› †‹•‹••‹‰ ‹– ˆ‘” †‡ˆƒ—Ž– ‘ˆ
ƒ’’‡ƒ”ƒ…‡ǤŠ‹•ǡŠ‘™‡˜‡”ǡ†‘‡•‘–‡ƒ–Šƒ––Š‡”‹„—ƒŽŠƒ•‰‘––‘–ƒ‡—’‘–Š‡•‡Ž˜‡•–Š‡”‡•’‘•‹„‹Ž‹–›‘ˆ
ϐ‹†‹‰ˆƒ…–•‘”’‘‹–•‘ˆŽƒ™™Š‹…Šƒ”‡‘–—”‰‡†„›–Š‡‡’ƒ”–‡–‘”–Š‡ƒ••‡••‡‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǤCIT v. A. C.
Paul (1983) 142 ITA 811 (Mad.).
Š‡”‹„—ƒŽ‹•–Š‡ϐ‹ƒŽ—–Š‘”‹–›ƒ†‘”†‹ƒ”‹Ž›ǡ‹ˆƒˆ–‡”…‘•‹†‡”‹‰–Š‡ƒ––‡”•‹–Š‡’”‘’‡”’‡”•’‡…–‹˜‡ƒ†
ƒˆ–‡”•—”˜‡›‹‰ƒŽŽƒ–‡”‹ƒŽ™Š‹…Š‹•ƒ˜ƒ‹Žƒ„Ž‡–‘‹–ǡ–Š‡”‹„—ƒŽƒ””‹˜‡•ƒ–•‘‡…‘…Ž—•‹‘‘‡™ƒ›‘”–Š‡‘–Š‡”ǡ
–Šƒ–…‘…Ž—•‹‘™‘—Ž†Šƒ˜‡–‘„‡”‡•’‡…–‡†ǡ—Ž‡••‹–…ƒ„‡”‡‰ƒ”†‡†ƒ•‹’‘••‹„Ž‡‘”’‡”˜‡”•‡ǤCIT v. Lalchand
Bhabutmal Jain (1985) 151 ITR 360 (Bom.)Ǥ
APPEALABLE ORDERS [SECTION 253(1) AND (2)]
›ƒ••‡••‡‡ƒ‰‰”‹‡˜‡†„›ƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‘”†‡”•ƒ›ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ‰ƒ‹•–•—…Š‘”†‡”Ǥ
ͳǤ ‘”†‡”’ƒ••‡†„›‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ—†‡”‡…–‹‘ͳͷͶ‘”†‡”‹‰ƒ”‡…–‹ϐ‹…ƒ–‹‘‘ˆ‹•–ƒ‡ǡ‘”—†‡”
‡…–‹‘ʹͷͲ‹…‘‡…–‹‘™‹–Š–Š‡†‹•’‘•ƒŽ‘ˆƒƒ’’‡ƒŽ‘”‡…–‹‘ʹ͹ͳ‹’‘•‹‰ƒ’‡ƒŽ–›ˆ‘”ˆƒ‹Ž—”‡–‘
ˆ—”‹•Š”‡–—”‡–…Ǥ‘”•‡…–‹‘ʹ͹Ͳȏ‹•‡”–‡†˜‹†‡ ‹ƒ…‡…–ǡʹͲͳ͸Ȑ‘”‡…–‹‘•ʹ͹ͳ‘”ʹ͹ʹǤ
ʹǤ  ‘”†‡” ’ƒ••‡† „› ƒ ƒ••‡••‹‰ ‘ˆϐ‹…‡” —†‡” Žƒ—•‡ ȋ…Ȍ ‘ˆ ‡…–‹‘ ͳͷͺǡ ‹ ”‡•’‡…– ‘ˆ •‡ƒ”…Š ‹‹–‹ƒ–‡†
—†‡”‡…–‹‘ͳ͵ʹ‘”„‘‘•‘ˆƒ……‘—–‘–Š‡”†‘…—‡–•‘”ƒ›ƒ••‡–•”‡“—‹•‹–‹‘‡†—†‡”‡…–‹‘ͳ͵ʹǡ
ƒˆ–‡”–Š‡͵Ͳ–Š†ƒ›‘ˆ —‡ǡͳͻͻͷ„—–„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ ƒ—ƒ”›ǡͳͻͻ͹Ǥ
͵Ǥ ‘”†‡”’ƒ••‡†„›ƒ”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”—†‡”‡…–‹‘ͳʹ”‡Žƒ–‹‰–‘”‡‰‹•–”ƒ–‹‘
‘ˆ –”—•– ‘” —†‡” ‡…–‹‘ ʹ͸͵ ”‡Žƒ–‹‰ –‘ ”‡˜‹•‹‘ ‘ˆ ‘”†‡”• ’”‡Œ—†‹…‹ƒŽ –‘ ”‡˜‡—‡ ‘” —†‡” ‡…–‹‘ ʹ͹ʹ
’‡ƒŽ–› ˆ‘” ˆƒ‹Ž—”‡ –‘ ƒ•™‡” “—‡•–‹‘ǡ •‹‰ •–ƒ–‡‡–•ǡ ƒŽŽ‘™ ‹•’‡…–‹‘ ‡–…Ǥǡ ‘ ‘” —†‡” ‡…–‹‘ ͳͷͶ
”‡…–‹ˆ›‹‰ƒ‹•–ƒ‡ǡ‘”ƒ‘”†‡”’ƒ••‡†„›ƒŠ‹‡ˆ‘‹••‹‘‡”ǡ‘”ƒ‹”‡…–‘”
‡‡”ƒŽ‘”ƒ†‹”‡…–‘”—†‡”
‡…–‹‘ʹ͹ʹǤ
ͶǤ ‘”†‡”’ƒ••‡†„›ƒ••‡••‹‰ˆϐ‹…‡”—†‡”—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ‡…–‹‘ͳͳͷǤ
ͷǤ ‘”†‡”’ƒ••‡†„›ƒ••‡••‹‰ˆϐ‹…‡”—†‡”•‡…–‹‘ͳͶ͵ȋ͵Ȍ‘”•‡…–‹‘ͳͶ͹‘”•‡…–‹‘ͳͷ͵‘”•‡…–‹‘ͳͷ͵
™‹–Š–Š‡ƒ’’”‘˜ƒŽ‘ˆ–Š‡…‘‹••‹‘‡”‘”ƒ‘”†‡”’ƒ••‡†—†‡”•‡…–‹‘ͳͷͶ‘”•‡…–‹‘ͳͷͷǤ
͸Ǥ ‘”†‡”’ƒ••‡†„›ƒ••‡••‹‰ˆϐ‹…‡”—†‡”•‡…–‹‘ͳͶ͵ȋ͵Ȍ‘”•‡…–‹‘ͳͶ͹‘”•‡…–‹‘ͳͷ͵‘”•‡…–‹‘ͳͷ͵
™‹–Š–Š‡ƒ’’”‘˜ƒŽ‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ•”‡ˆ‡””‡†–‘•‡…–‹‘ͳͶͶȋͳʹȌ‘”ƒ
‘”†‡”’ƒ••‡†—†‡”•‡…–‹‘ͳͷͶ‘”•‡…–‹‘ͳͷͷ‹”‡•’‡…–‘ˆ•—…Š‘”†‡”Ǥ
͹Ǥ  ‘”†‡” ’ƒ••‡† „› –Š‡ ’”‡•…”‹„‡† ƒ—–Š‘”‹–› —†‡” •—„Ǧ…Žƒ—•‡ ȋ˜‹Ȍ ‘” •—„Ǧ…Žƒ—•‡ ȋ˜‹ƒȌ ‘ˆ …Žƒ—•‡ ȋʹ͵Ȍ ‘ˆ
•‡…–‹‘ͳͲǤ
ͺǤ ‘”†‡”’ƒ••‡†„›’”‡•…”‹„‡†ƒ—–Š‘”‹–›—†‡”•‡…–‹‘ͳͲȋʹ͵Ȍȋ‹˜Ȍƒ†ͳͲȋʹ͵Ȍȋ˜Ȍ•ŠƒŽŽƒŽ•‘„‡ƒ’’‡ƒŽƒ„Ž‡
„‡ˆ‘”‡–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǤ
ͻǤ ‘”†‡”’ƒ••‡†‘ˆ’‡ƒŽ–›—†‡”•‡…–‹‘ʹ͹ͳ ƒ•‹’‘•‡†„›‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤ
Š‡‘‹••‹‘‡”ƒ›ǡ‹ˆŠ‡‘„Œ‡…–•–‘ƒ›‘”†‡”’ƒ••‡†„›‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ—†‡”‡…–‹‘ͳͷͶ‘”ʹͷͲǡ
†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ‰ƒ‹•––Š‡‘”†‡”Ǥ

PROCEDURE FOR FILING APPEAL [SECTION 253(3), (4)&(6)]

˜‡”›ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ•ŠƒŽŽ„‡ϐ‹Ž‡†™‹–Š‹•‹š–›†ƒ›•‘ˆ–Š‡†ƒ–‡‘™Š‹…Š–Š‡ǡ‘”†‡”•‘—‰Š––‘
PROCEDURE FOR FILING APPEAL [SECTION 253(3), (4)&(6)]
„‡ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–‹•…‘—‹…ƒ–‡†–‘–Š‡ƒ••‡••‡‡‘”–‘–Š‡‘‹••‹‘‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Š‡••‡••‹‰ˆϐ‹…‡”‘”–Š‡ƒ••‡••‡‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‘”‡…‡‹’–‘ˆ‘–‹…‡–Šƒ–ƒƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ–Š‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌŠƒ•„‡‡’”‡ˆ‡””‡†„›–Š‡‘–Š‡”’ƒ”–›ƒ›ǡ‘–™‹–Š•–ƒ†‹‰–Šƒ–Š‡ƒ›‘–Šƒ˜‡ƒ’’‡ƒŽ‡†
ƒ‰ƒ‹•– •—…Š ‘”†‡” ‘” ƒ› ’ƒ”– –Š‡”‡‘ˆǡ ™‹–Š‹ –Š‹”–› †ƒ›• ‘ˆ –Š‡ ”‡…‡‹’– ‘ˆ ‘–‹…‡ǡ ϐ‹Ž‡ ƒ ‡‘”ƒ†— ‘ˆ …”‘••Ǧ
‘„Œ‡…–‹‘•ǡ˜‡”‹ϐ‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”ǡƒ‰ƒ‹•–ƒ›’ƒ”–‘ˆ–Š‡‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ†•—…Š
‡‘”ƒ†—•ŠƒŽŽ„‡†‹•’‘•‡†‘ˆ„›–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ•‹ˆ‹–™‡”‡ƒƒ’’‡ƒŽ’”‡•‡–‡†™‹–Š‹–Š‡•’‡…‹ϐ‹‡†’‡”‹‘†Ǥ
 ͷͻʹ Lesson 10 Ȉ EP-TL

Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ›ƒ†‹–ƒƒ’’‡ƒŽ‘”’‡”‹––Š‡ϐ‹Ž‹‰‘ˆƒ‡‘”ƒ†—‘ˆ…”‘••Ǧ‘„Œ‡…–‹‘•ƒˆ–‡”–Š‡
‡š’‹”›‘ˆ–Š‡”‡Ž‡˜ƒ–’‡”‹‘†‹ˆ‹–‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡”‡™ƒ••—ˆϐ‹…‹‡–…ƒ—•‡ˆ‘”‘–’”‡•‡–‹‰‹–™‹–Š‹–Šƒ–’‡”‹‘†Ǥ
ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ•ŠƒŽŽ„‡‹–Š‡’”‡•…”‹„‡†ˆ‘”ƒ†•ŠƒŽŽ„‡˜‡”‹ϐ‹‡†‹–Š‡’”‡•…”‹„‡†ƒ‡”
ƒ†•ŠƒŽŽǡ‹…ƒ•‡‘ˆƒƒ’’‡ƒŽƒ†‡‘‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡͳͻͻͺǡ‹””‡•’‡…–‹˜‡‘ˆ–Š‡†ƒ–‡‘ˆ‹‹–‹ƒ–‹‘‘ˆ
–Š‡ƒ••‡••‡–’”‘…‡‡†‹‰•„‡ƒ……‘’ƒ‹‡†„›ƒϐ‹‡‘ˆǣ
ȋƒȌ •ǤͷͲͲ™Š‡”‡–Š‡ƒ••‡••‡†‹…‘‡ȀŽ‘••‹•ͳǡͲͲǡͲͲͲ”—’‡‡•‘”Ž‡••Ǥ
ȋ„Ȍ •ǤͳǡͷͲͲ™Š‡”‡–Š‡ƒ••‡••‡†‹…‘‡ȀŽ‘••‹•‘”‡–Šƒ‘‡Š—†”‡†–Š‘—•ƒ†”—’‡‡•„—–‘–‘”‡–Šƒ–™‘
Š—†”‡†–Š‘—•ƒ†”—’‡‡•Ǥ
ȋ…Ȍ ‡’‡”…‡–‘ˆ–Š‡ƒ••‡••‡†‹…‘‡ǡ•—„Œ‡…––‘ƒƒš‹—‘ˆ–‡–Š‘—•ƒ†”—’‡‡•™Š‡”‡–Š‡ƒ••‡••‡†‹…‘‡
‹•‘”‡–Šƒ–™‘Š—†”‡†–Š‘—•ƒ†”—’‡‡•ǡ
ȋ†Ȍ •ǤͷͲͲ‹ƒ›‘–Š‡”…ƒ•‡ǡ‡š…‡’–‹…ƒ•‡‘ˆƒƒ’’‡ƒŽϐ‹Ž‡†„›–Š‡†‡’ƒ”–‡–‘”ƒ‡‘”ƒ†—‘ˆ…”‘••Ǧ
‘„Œ‡…–‹‘•Ǥ
ƒ’’Ž‹…ƒ–‹‘ˆ‘”•–ƒ›‘ˆ†‡ƒ†Šƒ•–‘„‡ƒ……‘’ƒ‹‡†„›ƒˆ‡‡‘ˆ•ǤͷͲͲǤ
ƒ‹‰ƒƒ’’‡ƒŽ–‘–Š‡”‹„—ƒŽǡ–Š‡ˆ‘ŽŽ‘™‹‰†‘…—‡–••ŠƒŽŽ„‡•‡–‹–”‹’Ž‹…ƒ–‡Ǥ
ȋƒȌ Š‡‡‘”ƒ†—‘ˆƒ’’‡ƒŽǤ
ȋ„Ȍ Š‡‰”‘—†•‘ˆƒ’’‡ƒŽǤ
ȋ…Ȍ ‘’›‘ˆ–Š‡‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤ
ȋ†Ȍ ‘’›‘ˆ–Š‡‰”‘—†•‘ˆƒ’’‡ƒŽƒ†•–ƒ–‡‡–‘ˆˆƒ…–•ϐ‹Ž‡†„‡ˆ‘”‡–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤ
ȋ‡Ȍ ‘’›‘ˆ–Š‡‘”†‡”‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ
ȋˆȌ ŠƒŽŽƒˆ‘”’ƒ›‡–‘ˆ”‡“—‹•‹–‡ˆ‡‡Ǥ
Š‡”‡–Š‡ƒ’’‡ŽŽƒ–†‡•‹”‡•–‘”‡ˆ‡”–‘ƒ›†‘…—‡–•‘”‡˜‹†‡…‡Š‡‹•’‡”‹––‡†–‘ϐ‹Ž‡–Š‡•ƒ‡™‹–Š”‹„—ƒŽ‹
–Š‡ˆ‘”‘ˆƒ’ƒ’‡”„‘‘™‹–Š‹‘‡‘–Šˆ”‘–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰–Š‡ƒ’’‡ƒŽǤŠ‘—‰Š–Š‡’”‡•…”‹„‡†’‡”‹‘†‹‘‡
‘–Šǡ‹–™‹ŽŽ„‡’”‡ˆ‡”ƒ„Ž‡–‘ϐ‹Ž‡–Š‡•ƒ‡ƒŽ‘‰™‹–Š–Š‡ƒ’’‡ƒŽǤŠ‡”‡ƒƒ’’‡ŽŽƒ–‡‘”†‡”„›–Š‡‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍ‹•’ƒ••‡†ƒ•ƒ…‘•‘Ž‹†ƒ–‡†‘”†‡”ˆ‘”ƒ—„‡”‘ˆ›‡ƒ”•ǡƒ’’‡ƒŽ•–‘–Š‡”‹„—ƒŽ•ŠƒŽŽ„‡ϐ‹Ž‡†•‡’ƒ”ƒ–‡Ž›
ˆ‘”‡ƒ…Š›‡ƒ”Ǥ
Procedure when in an appeal by revenue an identical question of law is pending before Supreme
Court [Section 158AA]
‡™•‡…–‹‘ͳͷͺ‹•‹•‡”–‡†‹–Š‡…‘‡Ǧ–ƒš…–„› ‹ƒ…‡…–ǡʹͲͳͷ”‡Žƒ–‹‰–‘’”‘…‡†—”‡™Š‡‹ƒƒ’’‡ƒŽ
„›”‡˜‡—‡‘ƒ‹†‡–‹…ƒŽ“—‡•–‹‘‘ˆŽƒ™‹•’‡†‹‰„‡ˆ‘”‡—’”‡‡‘—”–Ǥ—„Ǧ•‡…–‹‘ȋͳȌ•‡‡•–‘’”‘˜‹†‡–Šƒ–
™Š‡”‡–Š‡‘‹••‹‘‡”‘””‹…‹’ƒŽ‘‹••‹‘‡”‹•‘ˆ–Š‡‘’‹‹‘–Šƒ–ƒ›“—‡•–‹‘‘ˆŽƒ™ƒ”‹•‹‰‹–Š‡…ƒ•‡‘ˆ
ƒƒ••‡••‡‡ˆ‘”ƒ›ƒ••‡••‡–›‡ƒ”‹•‹†‡–‹…ƒŽ™‹–Šƒ“—‡•–‹‘‘ˆŽƒ™ƒ”‹•‹‰‹Š‹•…ƒ•‡ˆ‘”ƒ‘–Š‡”ƒ••‡••‡–
›‡ƒ”™Š‹…Š‹•’‡†‹‰„‡ˆ‘”‡–Š‡—’”‡‡‘—”–ǡŠ‡ƒ›ǡ‹•–‡ƒ†‘ˆ†‹”‡…–‹‰–Š‡
••‡••‹‰ˆϐ‹…‡”–‘ϐ‹Ž‡ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǡ†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘ƒ‡ƒƒ’’Ž‹…ƒ–‹‘–‘–Š‡
’’‡ŽŽƒ–‡”‹„—ƒŽǡ•–ƒ–‹‰–Šƒ–ƒƒ’’‡ƒŽ‘–Š‡“—‡•–‹‘‘ˆŽƒ™ƒ”‹•‹‰‹–Š‡”‡Ž‡˜ƒ–…ƒ•‡ƒ›„‡ϐ‹Ž‡†™Š‡–Š‡
†‡…‹•‹‘‘–Š‡“—‡•–‹‘‘ˆŽƒ™„‡…‘‡•ϐ‹ƒŽ‹–Š‡‘–Š‡”…ƒ•‡Ǥ
—„Ǧ•‡…–‹‘ȋʹȌ•‡‡•–‘’”‘˜‹†‡–Šƒ––Š‡‘‹••‹‘‡”‘””‹…‹’ƒŽ‘‹••‹‘‡”•ŠƒŽŽ†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”
–‘ƒ‡ƒƒ’’Ž‹…ƒ–‹‘—†‡”•—„•‡…–‹‘ȋͳȌ‘Ž›‹ˆƒƒ……‡’–ƒ…‡‹•”‡…‡‹˜‡†ˆ”‘–Š‡ƒ••‡••‡‡–‘–Š‡‡ˆˆ‡…––Šƒ––Š‡
“—‡•–‹‘‘ˆŽƒ™‹–Š‡‘–Š‡”…ƒ•‡‹•‹†‡–‹…ƒŽ–‘–Šƒ–ƒ”‹•‹‰‹–Š‡”‡Ž‡˜ƒ–…ƒ•‡Ǣƒ†‹…ƒ•‡‘•—…Šƒ……‡’–ƒ…‡‹•
”‡…‡‹˜‡†ǡ–Š‡‘‹••‹‘‡”‘””‹…‹’ƒŽ‘‹••‹‘‡”•ŠƒŽŽ’”‘…‡‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†
‹•‡…–‹‘ʹͷ͵ȋʹȌ‘”•‡…ʹͷ͵ȋʹȌǤ
—„Ǧ•‡…–‹‘ȋ͵Ȍ•‡‡•–‘’”‘˜‹†‡–Šƒ–™Š‡”‡–Š‡‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͳȌ
‹•‘–‹…‘ˆ‘”‹–›™‹–Š–Š‡ϐ‹ƒŽ†‡…‹•‹‘‘–Š‡“—‡•–‹‘‘ˆŽƒ™‹–Š‡‘–Š‡”…ƒ•‡ǡ–Š‡‘‹••‹‘‡”‘””‹…‹’ƒŽ
‘‹••‹‘‡”ƒ›†‹”‡…––Š‡••‡••‹‰ˆϐ‹…‡”–‘ƒ’’‡ƒŽ–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ‰ƒ‹•–•—…Š‘”†‡”ƒ†ǡ•ƒ˜‡ƒ•
‘–Š‡”™‹•‡’”‘˜‹†‡†‹–Š‹••‡…–‹‘ǡƒŽŽ‘–Š‡”’”‘˜‹•‹‘•‘ˆƒ”–‘ˆ…Šƒ’–‡”•ŠƒŽŽƒ’’Ž›ƒ……‘”†‹‰Ž›Ǥ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͻ͵

ORDER OF APPELLATE TRIBUNAL [SECTION 254]

Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ›ǡƒˆ–‡”‰‹˜‹‰„‘–Š–Š‡’ƒ”–‹‡•–‘ƒ’’‡ƒŽƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ǡ’ƒ•••—…Š‘”†‡”•
–Š‡”‡‘ƒ•‹–ƒ›–Š‹ϐ‹–Ǥ
Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ›ǡƒ–ƒ›–‹‡™‹–Š‹•‹š‘–Š•ˆ”‘–Š‡‡†‘ˆ‘–Š‹™Š‹…Š–Š‡‘”†‡”™ƒ•’ƒ••‡†ǡ
™‹–Šƒ˜‹‡™–‘”‡…–‹ˆ›‹‰ƒ›‹•–ƒ‡ƒ’’ƒ”‡–ˆ”‘–Š‡”‡…‘”†ǡƒ‡†ƒ›‘”†‡”’ƒ••‡†„›‹–ƒ†•ŠƒŽŽƒ‡•—…Š
ƒ‡†‡–‹ˆ–Š‡‹•–ƒ‡‹•„”‘—‰Š––‘‹–•‘–‹…‡„›–Š‡ƒ••‡••‡‡‘”–Š‡••‡••‹‰ˆϐ‹…‡”Ǥ—–ǡƒ›ƒ‡†‡–
™Š‹…ŠŠƒ•–Š‡‡ˆˆ‡…–‘ˆ‡Šƒ…‹‰ƒƒ••‡••‡–‘””‡†—…‹‰ƒ”‡ˆ—†‘”‘–Š‡”™‹•‡‹…”‡ƒ•‹‰–Š‡Ž‹ƒ„‹Ž‹–›‘ˆ–Š‡
ƒ••‡••‡‡•ŠƒŽŽ‘–„‡ƒ†‡—Ž‡••–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽŠƒ•‰‹˜‡‘–‹…‡–‘–Š‡–‘–Š‡ƒ••‡••‡‡‘ˆ‹–•‹–‡–‹‘–‘
†‘•‘ƒ†Šƒ•ƒŽŽ‘™‡†–Š‡ƒ••‡••‡‡ƒ”‡ƒ•‘ƒ„Ž‡‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
Š‡”‹„—ƒŽǯ•†‡…‹•‹‘™‘—Ž†Šƒ˜‡„‹†‹‰‡ˆˆ‡…–™‹–Š‹–Š‡Œ—”‹•†‹…–‹‘ƒ†Šƒ•ƒ’‡”•—ƒ•‹˜‡˜ƒŽ—‡‘—–•‹†‡‹–•
Œ—”‹•†‹…–‹‘Ǥ
—„Ǧ•‡…–‹‘ȋʹȌ’”‘˜‹†‡•–Šƒ–‹‡˜‡”›ƒ’’‡ƒŽǡ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǡ™Š‡”‡‹–‹•’‘••‹„Ž‡ƒ›Š‡ƒ”ƒ††‡…‹†‡
•—…Šƒ’’‡ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆˆ‘—”›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š•—…Šƒ’’‡ƒŽ‹•ϐ‹Ž‡†—†‡”
‡…–‹‘ ʹͷ͵ȋͳȌǤ —„Ǧ•‡…–‹‘ ȋʹȌ ’”‘˜‹†‡• –Šƒ– –Š‡ …‘•– ‘ˆ ƒ› ƒ’’‡ƒŽ –‘ –Š‡ ’’‡ŽŽƒ–‡ ”‹„—ƒŽ •ŠƒŽŽ „‡ ƒ– –Š‡
†‹•…”‡–‹‘‘ˆ–Š‡”‹„—ƒŽǤ
‡…–‹‘ʹͷͶȋʹȌ’‡”–ƒ‹‹‰–‘•–ƒ›‘ˆ†‡ƒ†„›–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽŠƒ•„‡‡‘†‹ϐ‹‡†ƒ•ˆ‘ŽŽ‘™•ǣ
ͳǤ ‹–‹ƒŽŽ›–Š‡”‹„—ƒŽ…ƒ’ƒ••ƒ‘”†‡”‘ˆ–Š‡•–ƒ›‘Ž›ˆ‘”ƒ’‡”‹‘†‘–‡š…‡‡†‹‰ͳͺͲ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ
–Š‡‘”†‡”•–ƒ›‹‰–Š‡†‡ƒ†ȏ•—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡ƒ••‡••‡‡†‡’‘•‹–•‘–Ž‡••–Šƒ–™‡–›’‡”
…‡–‘ˆ–Š‡ƒ‘—–‘ˆ–ƒšǡ‹–‡”‡•–ǡˆ‡‡ǡ’‡ƒŽ–›ǡ‘”ƒ›‘–Š‡”•—’ƒ›ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ‘”
ˆ—”‹•Š‡••‡…—”‹–›‘ˆ‡“—ƒŽƒ‘—–‹”‡•’‡…––Š‡”‡‘ˆȂ‹•‡”–‡†˜‹†‡ ‹ƒ…‡…–ǡʹͲʹͲȐǤ
ʹǤ Š‡”‹„—ƒŽ•ŠƒŽŽ†‹•’‘•‡‘ˆƒ’’‡ƒŽ™‹–Š‹–Š‡ƒˆ‘”‡•ƒ‹†’‡”‹‘†Ǥ
͵Ǥ ˆƒ’’‡ƒŽ‹•‘–†‹•’‘•‡†‘ˆ™‹–Š‹–Š‡ƒˆ‘”‡•ƒ‹†’‡”‹‘†ǡ–Š‡’‡”‹‘†‘ˆ•–ƒ›ƒ›„‡‡š–‡†‡†ǤŠ‡–‘–ƒŽ’‡”‹‘†
‘ˆ•–ƒ›…ƒ‘–„‡‘”‡–Šƒ͵͸ͷ†ƒ›•”‡…‘‡†ˆ”‘–Š‡„‡‰‹‹‰‘ˆ–Š‡’‡”‹‘†Ǥš–‡•‹‘‹•’‘••‹„Ž‡‘Ž›
‹ˆƒ••‡••‡‡ƒ‡•ƒƒ’’Ž‹…ƒ–‹‘ƒ†Šƒ•…‘’Ž‹‡†™‹–Š–Š‡…‘†‹–‹‘”‡ˆ‡””‡†–‘‹–Š‡ϐ‹”•–’”‘˜‹•‘ƒ†
†‡Žƒ›‹•‘–ƒ––”‹„—–ƒ„Ž‡–‘ƒ••‡••‡‡
ͶǤ ’’‡ƒŽ•ŠƒŽŽ„‡†‹•’‘•‡†‘ˆ„›–Š‡”‹„—ƒŽ™‹–Š‹–Š‡‡š–‡†‡†’‡”‹‘†Ǥ
ͷǤ ˆƒ’’‡ƒŽ‹•‘–†‹•’‘•‡†‘ˆ™‹–Š‹–Š‡‡š–‡†‡†’‡”‹‘†‘”’‡”‹‘†•ǡ–Š‡‘”†‡”‘ˆ•–ƒ›•ŠƒŽŽ•–ƒ†˜ƒ…ƒ–‡†ƒˆ–‡”
–Š‡‡š’‹”›‘ˆ•—…Š’‡”‹‘†‘”’‡”‹‘†•Ǥ
Š‡ ’’‡ŽŽƒ–‡ ”‹„—ƒŽ •ŠƒŽŽ •‡† ƒ …‘’› ‘ˆ ƒ› ‘”†‡”• ’ƒ••‡† —†‡” –Š‹• •‡…–‹‘ –‘ –Š‡ ƒ••‡••‡‡ ƒ† –‘ –Š‡
‘‹••‹‘‡”Ǥ“—‡•–‹‘‘ˆˆƒ…–ǡ–Š‡‘”†‡”’ƒ••‡†„›–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ‘ƒ’’‡ƒŽ•ŠƒŽŽ„‡ϐ‹ƒŽǤ‘”†‡”
ƒ†‡ „› –Š‡ ’’‡ŽŽƒ–‡ ”‹„—ƒŽ •ŠƒŽŽ „‡ •—ˆϐ‹…‹‡–Ž› …‘’”‡Š‡•‹˜‡ ƒ† •‡ŽˆǦ…‘–ƒ‹‡†Ǥ – •Š‘—Ž† „‡ ’‘••‹„Ž‡ –‘
ƒ•…‡”–ƒ‹ˆ”‘–Š‡‘”†‡”ƒŽŽ–Š‡”‡Ž‡˜ƒ–ˆƒ…–•ƒ†–Š‡“—‡•–‹‘•ƒ”‹•‹‰‘–Š‡ƒ’’‡ƒŽǤ–•Š‘—Ž†ƒŽ•‘†‹•…Ž‘•‡™Šƒ–
™‡”‡–Š‡…‘–‡–‹‘•‘ˆ–Š‡’ƒ”–‹‡•ƒ†•Š‘—Ž†•–ƒ–‡™Š›ƒ†ˆ‘”™Šƒ–”‡ƒ•‘•–Š‘•‡…‘–‡–‹‘•™‡”‡”‡’‡ŽŽ‡†Ǥ
†‡”‡…–‹‘ʹͷͶȋͳȌǡ–Š‡”‹„—ƒŽƒ›ǡƒˆ–‡”‰‹˜‹‰„‘–Š’ƒ”–‹‡•–‘–Š‡ƒ’’‡ƒŽƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ǡ’ƒ••
•—…ŠǦ‘”†‡”•–Š‡”‡‘ƒ•‹–†‡‡•ϐ‹–Ǥ
‘Ž‹‹–ƒ–‹‘Šƒ•„‡‡’Žƒ…‡†‘–Š‡’‘™‡”•‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‘”–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ—†‡”‡…–‹‘
ʹͷͳȋͳȌ ‘” ʹͷͶȋͳȌǤ Š‡ ‘Ž› Ž‹‹–ƒ–‹‘ ‘ –Š‡‹” ƒ’’‡ŽŽƒ–‡ Œ—”‹•†‹…–‹‘ ‹• –Šƒ– –Š‡› …ƒ‘– ‰‘ ‹–‘ –Š‡ “—‡•–‹‘ ‘ˆ
’”‘’”‹‡–›‘ˆƒ‡šǦ’ƒ”–‡’”‘…‡‡†‹‰‘”ƒ„‡•–Œ—†‰‡–ƒ••‡••‡–ǤŠ‡“—ƒ–—‘ˆƒ••‡••‡–ǡ–Š‡“—ƒ–—‘ˆ
–ƒš‘”–Š‡“—‡•–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘‘ˆƒϐ‹”…ƒƒŽ™ƒ›•„‡‰‘‡‹–‘Ǥ‹•Š——ƒ”
—’–ƒ˜Ǥȋͳͻͺ͵ȌͳͶ͵ͳ͸ͻ
ȋŽŽȌǤ‘™‡˜‡”ǡ–Š‡’‘™‡”‘ˆ•–ƒ›‹•‘–Ž‹‡Ž›–‘„‡‡š‡”…‹•‡†‹ƒ”‘—–‹‡™ƒ›‘”ƒ•ƒƒ––‡”‘ˆ…‘—”•‡‹˜‹‡™‘ˆ–Š‡
•’‡…‹ƒŽƒ–—”‡‘ˆ–ƒšƒ–‹‘ƒ†”‡˜‡—‡Žƒ™•ǤŽ›™Š‡ƒ•–”‘‰’”‹ƒˆƒ…‹‡…ƒ•‡‹•ƒ†‡‘—–ǡ–Š‡”‹„—ƒŽ™‹ŽŽ
…‘•‹†‡”™Š‡–Š‡”–‘•–ƒ›–Š‡”‡…‘˜‡”›’”‘…‡‡†‹‰•Ǥ–ƒ›™‹ŽŽ„‡‰”ƒ–‡†‘Ž›‹†‡•‡”˜‹‰ƒ†ƒ’’”‘’”‹ƒ–‡…ƒ•‡•
ƒ†™Š‡”‡–Š‡”‹„—ƒŽ‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡‡–‹”‡’—”’‘•‡‘ˆ–Š‡ƒ’’‡ƒŽ™‹ŽŽ„‡ˆ”—•–”ƒ–‡†‘””‡†‡”‡†—‰ƒ–‘”›„›
ƒŽŽ‘™‹‰–Š‡”‡…‘˜‡”›’”‘…‡‡†‹‰•–‘…‘–‹—‡†—”‹‰–Š‡†‡’‡†‡…›‘ˆ–Š‡ƒ’’‡ƒŽ„‡ˆ‘”‡‹–Ǥ
‡…–‹‘ʹͷͶȋͳȌ‡’‘™‡”•–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ–‘‰‹˜‡‹–•†‡…‹•‹‘‘–Š‡‰”‘—†•—”‰‡†ƒ†‹–…ƒ’ƒ••ƒ’’”‘’”‹ƒ–‡
‘”†‡”•Ǥ–‹•‘–‘’‡–‘–Š‡”‹„—ƒŽ‹–•‡Žˆ–‘”ƒ‹•‡ƒ‰”‘—†‘”’‡”‹––Š‡’ƒ”–›™Š‘Šƒ†‘–ƒ’’‡ƒŽ‡†–‘”ƒ‹•‡ƒ
‰”‘—†™Š‹…Š™‹ŽŽ™‘”ƒ†˜‡”•‡Ž›‘–Š‡ƒ’’‡ŽŽƒ–•Ǥ
 ͷͻͶ Lesson 10 Ȉ EP-TL

†‡”‡…–‹‘ʹͷͶȋʹȌǡ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽŠƒ•‰‘–ƒ’Ž‡’‘™‡”–‘”‡…–‹ˆ›ƒ‹•–ƒ‡ƒ’’ƒ”‡–ˆ”‘”‡…‘”†•—‘
‘–—Ǥˆ–Š‡‹•–ƒ‡‹•„”‘—‰Š––‘–Š‡‘–‹…‡‘ˆ–Š‡”‹„—ƒŽ„›–Š‡’ƒ”–‹‡•–‘–Š‡ƒ’’‡ƒŽǡ–Š‡”‹„—ƒŽ‹•‡’‘™‡”‡†
–‘”‡…–‹ˆ›–Š‡•ƒ‡ǤAddl. CIT v. ITAT (1983) 139 ITR 615 (AP).
”‘–Š‡••‡••‡–›‡ƒ”ʹͲͲͻǦͳͲȋ™Ǥ‡ǤˆǤͳǤͳͲǤʹͲͲͺȌǡ–Š‡–Š‹”†’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋʹȌ’”‘˜‹†‡•–Šƒ–‹ˆ•—…Š
ƒ’’‡ƒŽ‹•‘–†‡…‹†‡†™‹–Š‹–Š‡’‡”‹‘†ƒŽŽ‘™‡†‘”‹‰‹ƒŽŽ›‘”–Š‡’‡”‹‘†••‘‡š–‡†‡†‘”ƒŽŽ‘™‡†ǡ–Š‡‘”†‡”‘ˆ•–ƒ›
•ŠƒŽŽ•–ƒ†˜ƒ…ƒ–‡†ƒˆ–‡”‡š’‹”›‘ˆ•—…Š’‡”‹‘†‘”’‡”‹‘†•Ǥ
Š‡‹–‡–‹‘„‡Š‹†–Š‡•‡’”‘˜‹•‹‘•Šƒ•„‡‡˜‡”›…Ž‡ƒ”–Šƒ––Š‡’’‡ŽŽƒ–‡–”‹„—ƒŽ…ƒ‘–‰”ƒ–•–ƒ›‡‹–Š‡”—†‡”
–Š‡‘”‹‰‹ƒŽ‘”†‡”‘”ƒ›‘–Š‡”•—„•‡“—‡–‘”†‡”ǡ„‡›‘†–Š‡’‡”‹‘†‘ˆ͵͸ͷ†ƒ›•‹ƒ‰‰”‡‰ƒ–‡Ǥ
ˆ–Š‡”‹„—ƒŽ‹•—ƒ„Ž‡–‘†‡…‹†‡–Š‡ƒ’’‡ƒŽ‘–Š‡„ƒ•‹•‘ˆƒ–‡”‹ƒŽ•„‡ˆ‘”‡‹–ǡ‹–ƒ›ƒ†‹–ˆ”‡•Š‡˜‹†‡…‡ƒ†
†‡…‹†‡–Š‡ƒ’’‡ƒŽǤ–ƒ›ƒŽ•‘‡‡’–Š‡ƒ’’‡ƒŽ’‡†‹‰ƒ††‹”‡…–ƒ›‘‡‘ˆ–Š‡•—„‘”†‹ƒ–‡ƒ—–Š‘”‹–‹‡•–‘ƒ•…‡”–ƒ‹
ˆ—”–Š‡”ˆƒ…–•Ǥ
PROCEDURE OF APPELLATE TRIBUNAL [SECTION 255]
Š‡’‘™‡”•ƒ†ˆ—…–‹‘•‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽƒ›„‡‡š‡”…‹•‡†ƒ††‹•…Šƒ”‰‡†„›„‡…Š‡•…‘•–‹–—–‡†„›–Š‡
”‡•‹†‡– ‘ˆ –Š‡ ’’‡ŽŽƒ–‡ ”‹„—ƒŽ ˆ”‘ ƒ‘‰•– –Š‡ ‡„‡”• –Š‡”‡‘ˆǤ Š‡ „‡…Š •ŠƒŽŽ …‘•‹•– ‘ˆ ‘‡ Œ—†‹…‹ƒŽ
‡„‡”ƒ†‘‡ƒ……‘—–ƒ–‡„‡”Ǥ
Š‡”‡•‹†‡–‘”ƒ›‘–Š‡”‡„‡”‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǡƒ—–Š‘”‹•‡†‹–Š‹•„‡ŠƒŽˆ„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ
ƒ›ǡ•‹––‹‰•‹‰Ž›ǡ†‹•’‘•‡‘ˆƒ›…ƒ•‡™Š‹…ŠŠƒ•„‡‡ƒŽŽ‘––‡†–‘–Š‡‡…Š‘ˆ™Š‹…ŠŠ‡‹•ƒ‡„‡”ƒ†™Š‹…Š
’‡”–ƒ‹•–‘ƒƒ••‡••‡‡™Š‘•‡ǡ–‘–ƒŽ‹…‘‡ƒ•…‘’—–‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”‹–Š‡…ƒ•‡†‘‡•‘–‡š…‡‡†•Ǥ
ͷͲǡͲͲǡͲͲͲȏ‡†‡–˜‹†‡ ‹ƒ…‡…–ǡʹͲͳ͸ȐǤŠ‡”‡•‹†‡–ƒ›ǡˆ‘”–Š‡†‹•’‘•ƒŽ‘ˆƒ›’ƒ”–‹…—Žƒ”…ƒ•‡ǡ…‘•–‹–—–‡
ƒ’‡…‹ƒŽ‡…Š…‘•‹•–‹‰‘ˆ–Š”‡‡‘”‘”‡‡„‡”•ǡ‘‡‘ˆ™Š‘•ŠƒŽŽ‡…‡••ƒ”‹Ž›„‡ƒŒ—†‹…‹ƒŽ‡„‡”ƒ†‘‡
ƒƒ……‘—–ƒ–‡„‡”Ǥ
ˆ–Š‡‡„‡”•‘ˆƒ‡…Š†‹ˆˆ‡”‹‘’‹‹‘‘ƒ›’‘‹–ǡ–Š‡’‘‹–•ŠƒŽŽ„‡†‡…‹†‡†ƒ……‘”†‹‰–‘–Š‡‘’‹‹‘‘ˆ–Š‡
ƒŒ‘”‹–›‹ˆ–Š‡”‡‹•ƒƒŒ‘”‹–›Ǥ—–‹ˆ–Š‡‡„‡”•ƒ”‡‡“—ƒŽŽ›†‹˜‹†‡†ǡ–Š‡›•ŠƒŽŽ•–ƒ–‡–Š‡’‘‹–‘”’‘‹–•‘™Š‹…Š
–Š‡›†‹ˆˆ‡”ƒ†–Š‡…ƒ•‡•ŠƒŽŽ„‡”‡ˆ‡””‡†„›–Š‡”‡•‹†‡–‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽˆ‘”Š‡ƒ”‹‰‘•—…Š’‘‹–‘”
’‘‹–• „› ‘‡ ‘” ‘”‡ ‘ˆ –Š‡ ‘–Š‡” ‡„‡”• ‘ˆ –Š‡ ’’‡ŽŽƒ–‡ ”‹„—ƒŽǤ —…Š ’‘‹– ‘” ’‘‹–• •ŠƒŽŽ „‡ †‡…‹†‡†
ƒ……‘”†‹‰–‘–Š‡‘’‹‹‘‘ˆ–Š‡ƒŒ‘”‹–›‘ˆ–Š‡‡„‡”•‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ™Š‘Šƒ˜‡Š‡ƒ”†–Š‡…ƒ•‡‹…Ž—†‹‰
–Š‘•‡™Š‘ϐ‹”•–Š‡ƒ”†‹–Ǥ
Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ•ŠƒŽŽŠƒ˜‡–Š‡’‘™‡”–‘”‡‰—Žƒ–‡‹–•‘™’”‘…‡†—”‡ƒ†–Š‡’”‘…‡†—”‡‘ˆ‡…Š‡•–Š‡”‡‘ˆ‹
ƒŽŽƒ––‡”•ƒ”‹•‹‰‘—–‘ˆ–Š‡‡š‡”…‹•‡‘ˆ‹–•’‘™‡”•‘”‘ˆ–Š‡†‹•…Šƒ”‰‡‘ˆ‹–•ˆ—…–‹‘•‹…Ž—†‹‰–Š‡’Žƒ…‡•ƒ–™Š‹…Š
–Š‡‡…Š‡••ŠƒŽŽŠ‘Ž†–Š‡‹”•‹––‹‰•Ǥ
Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ•ŠƒŽŽŠƒ˜‡ǡˆ‘”–Š‡’—”’‘•‡‘ˆ†‹•…Šƒ”‰‹‰‹–•ˆ—…–‹‘•ǡƒŽŽ–Š‡’‘™‡”•™Š‹…Šƒ”‡˜‡•–‡†‹
–Š‡…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•—†‡”‡…–‹‘ͳ͵ͳǡƒ†ƒ›’”‘…‡‡†‹‰„‡ˆ‘”‡–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ•ŠƒŽŽ„‡†‡‡‡†–‘
„‡ƒŒ—†‹…‹ƒŽ’”‘…‡‡†‹‰ƒ†ˆ‘”–Š‡’—”’‘•‡‘ˆ‡…–‹‘ͳͻ͸‘ˆ–Š‡†‹ƒ‡ƒŽ‘†‡ǡ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ•ŠƒŽŽ„‡
†‡‡‡†–‘„‡ƒ‹˜‹Ž‘—”–ˆ‘”ƒŽŽ’—”’‘•‡•‘ˆ‡…–‹‘ͳͻͷƒ†Šƒ’–‡”‘ˆ–Š‡‘†‡‘ˆ”‹‹ƒŽ”‘…‡†—”‡Ǥ
Š‡ ’’‡ŽŽƒ–‡ ”‹„—ƒŽ ‹• ƒ ϐ‹ƒŽ ˆƒ…– ϐ‹†‹‰ ƒ—–Š‘”‹–› ƒ† ‹ˆ ‹– ƒ””‹˜‡• ƒ– ‹–• ‘™ …‘…Ž—•‹‘• ‘” ˆƒ…–• ƒˆ–‡” –Š‡
…‘•‹†‡”ƒ–‹‘‘ˆ–Š‡‡˜‹†‡…‡„‡ˆ‘”‡‹–ǡ–Š‡‘—”–™‹ŽŽ‘–‹–‡”ˆ‡”‡Ǥ–‹•‡…‡••ƒ”›ǡŠ‘™‡˜‡”ǡ–Šƒ–‡˜‡”›ˆƒ…–Ǯˆ‘”ǯƒ†
Ǯƒ‰ƒ‹•–ǯ–Š‡ƒ••‡••‡‡—•–Šƒ˜‡„‡‡…‘•‹†‡”‡†™‹–Š†—‡…ƒ”‡ƒ†–Š‡”‹„—ƒŽ—•–Šƒ˜‡‰‹˜‡‹–•ϐ‹†‹‰‹ƒ
ƒ‡”™Š‹…Š™‘—Ž†Šƒ˜‡…Ž‡ƒ”Ž›‹†‹…ƒ–‡†™Šƒ–™‡”‡–Š‡“—‡•–‹‘•™Š‹…Šƒ”‘•‡ˆ‘”†‡–‡”‹ƒ–‹‘ǡ™Šƒ–™ƒ•–Š‡
‡˜‹†‡…‡’”‘ƒ†…‘–”ƒ‹”‡‰ƒ”†–‘‡ƒ…Š‘‡‘ˆ–Š‡ǡƒ†™Šƒ–™‡”‡–Š‡ϐ‹†‹‰•”‡ƒ…Š‡†‘–Š‡‡˜‹†‡…‡‘
”‡…‘”†„‡ˆ‘”‡‹–Ǥ

APPEAL BEFORE HIGH COURT

‡…–‹‘•ʹ͸Ͳƒ†ʹ͸Ͳƒ”‡‹•‡”–‡†™Ǥ‡ǤˆǤ…–‘„‡”ͳǡͳͻͻͺǤ‡…–‹‘ʹ͸Ͳ’”‘˜‹†‡•–Šƒ–ƒƒ’’‡ƒŽ•ŠƒŽŽŽ‹‡–‘–Š‡
APPEAL BEFORE HIGH COURT
‹‰Š‘—”–ˆ”‘‡˜‡”›‘”†‡”’ƒ••‡†‹ƒ’’‡ƒŽ„›–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ‹ˆ–Š‡‹‰Š‘—”–‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡…ƒ•‡
‹˜‘Ž˜‡•ƒ•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™Ǥ
Š‡ Š‹‡ˆ ‘‹••‹‘‡” ‘” –Š‡ ‘‹••‹‘‡” ‘” ƒ ƒ••‡••‡‡ ƒ‰‰”‹‡˜‡† „› ƒ› ‘”†‡” ’ƒ••‡† „› –Š‡ ’’‡ŽŽƒ–‡
”‹„—ƒŽƒ›ϐ‹Ž‡ƒƒ’’‡ƒŽ–‘–Š‡‹‰Š‘—”–ƒ†•—…Šƒ’’‡ƒŽ•ŠƒŽŽ„‡ϐ‹Ž‡†™‹–Š‹ͳʹͲ†ƒ›•‘ˆ–Š‡†ƒ–‡‘™Š‹…Š–Š‡
‘”†‡”ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–‹•”‡…‡‹˜‡†„›–Š‡ƒ••‡••‡‡‘”–Š‡Š‹‡ˆ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ†•ŠƒŽŽ„‡ϐ‹Ž‡†‹
–Š‡ˆ‘”‘ˆ‡‘”ƒ†—‘ˆƒ’’‡ƒŽ’”‡…‹•‡Ž›•–ƒ–‹‰–Š‡•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™‹˜‘Ž˜‡†Ǥ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͻͷ

ˆ–Š‡‹‰Š‘—”–‹••ƒ–‹•ϐ‹‡†–Šƒ–ƒ•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™‹•‹˜‘Ž˜‡†‹ƒ›…ƒ•‡ǡ‹–•ŠƒŽŽˆ‘”—Žƒ–‡–Šƒ–“—‡•–‹‘Ǥ
Š‡ ƒ’’‡ƒŽ •ŠƒŽŽ „‡ Š‡ƒ”† ‘Ž› ‘ –Š‡ “—‡•–‹‘ •‘ ˆ‘”—Žƒ–‡†ǡ ƒ† –Š‡ ”‡•’‘†‡–• •ŠƒŽŽ ƒ– –Š‡ Š‡ƒ”‹‰ ‘ˆ –Š‡
ƒ’’‡ƒŽǡ„‡ƒŽŽ‘™‡†–‘ƒ”‰—‡–Šƒ––Š‡…ƒ•‡†‘‡•‘–‹˜‘Ž˜‡•—…Š“—‡•–‹‘Ǥ‘™‡˜‡”ǡ–Š‡‹‰Š‘—”–ƒ›ˆ‘””‡ƒ•‘•
–‘„‡”‡…‘”†‡†ǡŠ‡ƒ”–Š‡ƒ’’‡ƒŽ‘ƒ›‘–Š‡”•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™‘–ˆ‘”—Žƒ–‡†„›‹–ǡ‹ˆ‹–‹••ƒ–‹•ϐ‹‡†–Šƒ–
–Š‡…ƒ•‡‹˜‘Ž˜‡••—…Š“—‡•–‹‘Ǥ
Š‡‹‰Š‘—”–•ŠƒŽŽ†‡…‹†‡–Š‡“—‡•–‹‘‘ˆŽƒ™•‘ˆ‘”—Žƒ–‡†ƒ††‡Ž‹˜‡”•—…ŠŒ—†‰‡––Š‡”‡‘…‘–ƒ‹‹‰–Š‡
‰”‘—†•‘™Š‹…Š•—…Š†‡…‹•‹‘‹•ˆ‘—†‡†ƒ†ƒ›ƒ™ƒ”†•—…Š…‘•–ƒ•‹–†‡‡•ϐ‹–Ǥ
Š‡‹‰Š‘—”–ƒ›†‡–‡”‹‡ƒ›‹••—‡™Š‹…ŠŠƒ•‘–„‡‡†‡–‡”‹‡†„›–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ‘”Šƒ•„‡‡
™”‘‰Ž›†‡–‡”‹‡†„›–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ‘•—…Š•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™Ǥ
Š‡”‡–Š‡‹‰Š‘—”–†‡Ž‹˜‡”•ƒŒ—†‰‡–‹ƒƒ’’‡ƒŽϐ‹Ž‡†„‡ˆ‘”‡‹–—†‡”‡…–‹‘ʹ͸Ͳǡ‡ˆˆ‡…–•ŠƒŽŽ„‡‰‹˜‡–‘–Š‡
‘”†‡”’ƒ••‡†‘–Š‡ƒ’’‡ƒŽ„›–Š‡••‡••‹‰ˆϐ‹…‡”‘–Š‡„ƒ•‹•‘ˆƒ…‡”–‹ϐ‹‡†…‘’›‘ˆŒ—†‰‡–ȏ‡…–‹‘ʹ͸ͲȋͳȌȐǤ
‡…–‹‘ʹ͸Ͳ’”‘˜‹†‡•–Šƒ–ƒƒ’’‡ƒŽϐ‹Ž‡†—†‡”‡…–‹‘ʹ͸Ͳ•ŠƒŽŽ„‡Š‡ƒ”†„›ƒ„‡…Š‘ˆ‘–Ž‡••–Šƒ–™‘Œ—†‰‡•
‘ˆ–Š‡‹‰Š‘—”–ƒ†•ŠƒŽŽ„‡†‡…‹†‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡‘’‹‹‘•—…Š —†‰‡•‘”–Š‡ƒŒ‘”‹–›ǡ‹ˆƒ›ǤŠ‡”‡ǡ
Š‘™‡˜‡”ǡ–Š‡”‡‹•‘•—…ŠƒŒ‘”‹–›ǡ–Š‡’ƒ”–‘ˆŽƒ™—’‘™Š‹…Š–Š‡›†‹ˆˆ‡”•ŠƒŽŽ„‡”‡ˆ‡””‡†–‘‘‡‘”‘”‡‘ˆ–Š‡
—†‰‡•‘ˆ–Š‡‹‰Š‘—”–ƒ†•ŠƒŽŽ„‡†‡…‹†‡†ƒ……‘”†‹‰–‘–Š‡‘’‹‹‘‘ˆ–Š‡ƒŒ‘”‹–›‘ˆ–Š‡ —†‰‡•™Š‘Šƒ˜‡Š‡ƒ”†
–Š‡…ƒ•‡‹…Ž—†‹‰–Š‘•‡™Š‘ϐ‹”•–Š‡ƒ”†‹–Ǥ
Š‡‹‰Š‘—”–ƒŽ•‘Šƒ•’‘™‡”–‘•–ƒ›ƒ’”‘…‡‡†‹‰ˆ‘””‡…‘˜‡”›‘ˆ†‡ƒ†ƒ”‹•‹‰‘—–‘ˆ–Š‡ƒ••‡••‡–‘”†‡”
’‡†‹‰†‹•’‘•ƒŽ‘ˆƒ’’‡ƒŽǤ
APPEAL BEFORE SUPREME COURT [SECTION 261]
Š‡ƒ‰‰”‹‡˜‡†’ƒ”–›‹•‡–‹–Ž‡†–‘ƒ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–ƒ‰ƒ‹•––Š‡Œ—†‰‡–†‡Ž‹˜‡”‡†„›–Š‡‹‰Š‘—”–‘
–Š‡”‡ˆ‡”‡…‡ƒ’’Ž‹…ƒ–‹‘ƒ†‡–‘‹–„›–Š‡”‹„—ƒŽȋ—†‡”‡…–‹‘ʹͷ͸Ȍƒ‰ƒ‹•–ƒ‘”†‡”ƒ†‡—†‡”‡…–‹‘ʹͷͶ
„‡ˆ‘”‡–Š‡ͳ•–†ƒ›‘ˆ…–‘„‡”ǡͳͻͻͺ‘”ƒƒ’’‡ƒŽƒ†‡–‘‹‰Š‘—”–‹”‡•’‡…–‘ˆƒ‘”†‡”’ƒ••‡†—†‡”‡…–‹‘ʹͷͶ
‘‘”ƒˆ–‡”–Šƒ–†ƒ–‡’”‘˜‹†‡†–Š‡‹‰Š‘—”–…‡”–‹ϐ‹‡•–Š‡…ƒ•‡–‘„‡ϐ‹–ˆ‘”ƒ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–ǤŠ‡”‹‰Š–
‘ˆƒ’’‡ƒŽ‹•ǡ–Š‡”‡ˆ‘”‡ǡ…‘†‹–‹‘ƒŽƒ†ƒ›„‡ƒ˜ƒ‹Ž‡†‘ˆ‘Ž›‹ˆ–Š‡‹‰Š‘—”–‰‹˜‡•ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ•—…Šϐ‹–‡••Ǥ
Š‡‹‰Š‘—”–…‘—Ž†…‡”–‹ˆ›–Š‡…ƒ•‡ƒ•ƒϐ‹–‘‡ˆ‘”ƒ’’‡ƒŽƒ†‰”ƒ–Ž‡ƒ˜‡–‘–Š‡—’”‡‡‘—”–‹ˆƒ•—„•–ƒ–‹ƒŽ
“—‡•–‹‘‘ˆŽƒ™‹•‹˜‘Ž˜‡†‘”‹ˆ–Š‡“—‡•–‹‘‹•Ž‹‡Ž›–‘…‘‡—’‹•—……‡••‹˜‡›‡ƒ”‘”‹ˆ–Š‡“—‡•–‹‘‹•‘–Š‡”™‹•‡‘ˆ
‰”‡ƒ–’—„Ž‹…‘”’”‹˜ƒ–‡‹’‘”–ƒ…‡Ǥ
ƒ’’Ž‹…ƒ–‹‘‘ˆϐ‹–‡••ˆ‘”ƒ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–Šƒ•–‘„‡ƒ†‡™‹–Š‹͸Ͳ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‹‰Š
‘—”–ǯ•Œ—†‰‡–ȋ—†‡””–‹…Ž‡ͳ͵ʹ‘ˆ–Š‡…Š‡†—Ž‡–‘–Š‡‹‹–ƒ–‹‘…–ǡͳͻ͸͵ȌǤŠ‡–‹‡”‡“—‹”‡†ˆ‘”–ƒ‹‰ƒ
…‡”–‹ϐ‹‡†…‘’›‘ˆ–Š‡‹‰Š‘—”–ǯ•Œ—†‰‡–‹•–‘„‡‡š…Ž—†‡†‹…‘’—–‹‰•—…Š’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘Ǥ
ˆ–Š‡‹‰Š‘—”–”‡ˆ—•‡•–‘…‡”–‹ˆ›ƒ…ƒ•‡–‘„‡ϐ‹–ˆ‘”ƒ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–ǡƒƒ’’Ž‹…ƒ–‹‘ƒ›„‡ƒ†‡–‘
–Š‡—’”‡‡‘—”–ȋ—†‡””–‹…Ž‡ͳ͵͸‘ˆ–Š‡‘•–‹–—–‹‘Ȍˆ‘”•’‡…‹ƒŽŽ‡ƒ˜‡–‘ƒ’’‡ƒŽƒ‰ƒ‹•––Š‡†‡…‹•‹‘‘ˆ–Š‡
‹‰Š‘—”–Ǥ
Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺ”‡Žƒ–‹‰–‘–Š‡ƒ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–ƒ”‡ƒ’’Ž‹…ƒ„Ž‡‹–Š‡
…ƒ•‡‘ˆƒ’’‡ƒŽ•—†‡”‡…–‹‘ʹ͸ͳ‹–Š‡•ƒ‡ƒ‡”ƒ•–Š‡›ƒ”‡ƒ’’Ž‹…ƒ„Ž‡‹–Š‡…ƒ•‡‘ˆƒ’’‡ƒŽ•ˆ”‘†‡…”‡‡•‘ˆ
ƒ‹‰Š‘—”–ȏ‡…–‹‘ʹ͸ʹȋͳȌȐǤ
Š‡”‡ –Š‡ Œ—†‰‡– ‘ˆ –Š‡ ‹‰Š ‘—”– ‹• …Šƒ‰‡† ‘” ”‡˜‡”•‡† ‹ –Š‡ ƒ’’‡ƒŽǡ ‡ˆˆ‡…– ‹• ‰‹˜‡ –‘ –Š‡ ‘”†‡” ‘ˆ –Š‡
—’”‡‡‘—”–ȏ‡…–‹‘ʹ͸ʹȋ͵ȌȐǤŠ‡Žƒ™†‡…Žƒ”‡†„›–Š‡—’”‡‡‘—”–‹•„‹†‹‰‘ƒŽŽ…‘—”–•™‹–Š‹–Š‡–‡””‹–‘”›
‘ˆ†‹ƒ—†‡””–‹…Ž‡ͳͶͳ‘ˆ–Š‡‘•–‹–—–‹‘Ǥ
–Š‡”‡…‡‹’–‘ˆƒ…‘’›‘ˆŒ—†‰‡–ǡ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽŠƒ•–‘’ƒ•••—…Š‘”†‡”•ƒ•ƒ”‡‡…‡••ƒ”›–‘†‹•’‘•‡‘ˆ
–Š‡…ƒ•‡…‘ˆ‘”ƒ„Ž›–‘•—…ŠŒ—†‰‡–Ǥ
‘ƒ™ƒ”†–Š‡…‘•–‘ˆƒƒ’’‡ƒŽ‹•ƒ––Š‡†‹•…”‡–‹‘–Š‡—’”‡‡‘—”–ȏ‡…–‹‘ʹ͸ʹȋʹȌȐǤ–™‘—Ž†„‡‘’‡–‘–Š‡‘—”–
‘––‘ƒ™ƒ”†…‘•–•‡˜‡–‘–Š‡’ƒ”–›™Š‹…ŠŠƒ••—……‡‡†‡†‹–Š‡ƒ’’‡ƒŽ„‡ˆ‘”‡‹–Ǥˆ–Š‡—’”‡‡‘—”–ƒ™ƒ”†•…‘•–•
–‘ƒ’ƒ”–›ƒ†–Š‡’ƒ”–›Šƒ•‘–…‘’Ž‹‡†™‹–Š–Š‡‘”†‡”ǡƒ’‡–‹–‹‘ƒ›„‡ƒ†‡–‘–Š‡ƒ’’”‘’”‹ƒ–‡‹‰Š‘—”–ˆ‘”
‡š‡…—–‹‘‘ˆ–Š‡‘”†‡”‘ˆ–Š‡—’”‡‡‘—”–ȋ‡…–‹‘ʹ͸͸ȌǤŠ‡‹‰Š‘—”–ƒ›–”ƒ•‹––Š‡‘”†‡”ˆ‘”‡š‡…—–‹‘–‘
ƒ›…‘—”–•—„‘”†‹ƒ–‡–‘‹–ȋ‡…–‹‘ʹ͸͸ȌǤ
 ͷͻ͸ Lesson 10 Ȉ EP-TL

‡…–‹‘ʹͷ͹‡ƒ„Ž‡•–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ–‘ƒ‡ƒ†‹”‡…–”‡ˆ‡”‡…‡–‘–Š‡—’”‡‡‘—”–‹ˆ–Š‡”‹„—ƒŽ‹•‘ˆ–Š‡
‘’‹‹‘–Šƒ–ǡ‘ƒ……‘—–‘ˆƒ…‘ϐŽ‹…–‹–Š‡†‡…‹•‹‘‘ˆ‹‰Š‘—”–‹”‡•’‡…–‘ˆƒ›’ƒ”–‹…—Žƒ”“—‡•–‹‘‘ˆŽƒ™ǡ‹–‹•
‡š’‡†‹‡––Šƒ–ƒ”‡ˆ‡”‡…‡•Š‘—Ž†„‡ƒ†‡†‹”‡…–Ž›–‘–Š‡Š‹‰Š‡•–…‘—”–Ǥ

SUMMARY OF APPEALS
1. Appeal to CIT(Appeals) [Section 246A to Section 251]
Ȉ ’’‡ƒŽ…ƒ„‡ƒ†‡„›••‡••‡‡‘Ž›ȋ ‹”•–’’‡ƒŽ‡…–‹‘ʹͶ͸Ȍ
Ȉ ‹–Š‹͵Ͳ†ƒ›•‘ˆ’ƒ›‡–‘ˆ‘”•‡”˜‹…‡‘ˆ‘–‹…‡‘ˆ†‡ƒ†‘”‘”†‡”Ǥ‡Žƒ›ƒ›„‡…‘†‘‡†
Ȉ ‘•—ˆϐ‹…‹‡–…ƒ—•‡„‡‡•Š‘™Ǥ
Ȉ ’’‡ƒŽ‹•–‘„‡ƒ†‡‹†—’Ž‹…ƒ–‡‹ ‘”‘Ǥ͵ͷǤ
Ȉ ’’‡ƒŽ•Š‘—Ž†„‡†‹•’‘•‡†™‹–Š‹ͳ›‡ƒ”ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Šƒ’’‡ƒŽ™ƒ•ƒ†‡Ǥ
2. Appeal to ITAT [Section 252-255]
Ȉ ’’‡ƒŽ…ƒ„‡ƒ†‡„›ƒ••‡••‡‡‘”‡’ƒ”–‡–Ǥȋ‡…‘†ƒ’’‡ƒŽ‡…–‹‘ʹͷ͵Ȍ
Ȉ ’’‡ƒŽ…ƒƒŽ•‘„‡ƒ†‡—†‡”ˆ‘ŽŽ‘™‹‰•‹–—ƒ–‹‘•ǣ
ȋƒȌ ’’‡ƒŽƒ‰ƒ‹•–”‡˜‹•‹‘‘”†‡”—†‡”•‡…–‹‘ʹ͸͵Ǥ
ȋ„Ȍ ‰ƒ‹•––Š‡‘”†‡”’ƒ••‡†™‹–Š’”‡˜‹‘—•ƒ’’”‘˜ƒŽ‘”—†‡”•‡…–‹‘ͳͳͷȋͳȌ‘”‘–Š‡
†‹”‡…–‹‘‘ˆ–Š‡‹•’—–‡‡•‘Ž—–‹‘ƒ‡ŽǤ
ȋ…Ȍ ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”’ƒ••‡†„›”‡ˆ—•‹‰–‘‰”ƒ–”‡‰‹•–”ƒ–‹‘—†‡”‡…–‹‘ͳʹ‘”
”‡ˆ—•‹‰–‘‰”ƒ–ƒ’’”‘˜ƒŽ—†‡”•‡…–‹‘ͺͲ
Ǥ
Ȉ ’’‡ƒŽ•Š‘—Ž†„‡ƒ†‡™‹–Š‹͸Ͳ†ƒ›•‘ˆ…‘—‹…ƒ–‹‘‘ˆ‘”†‡”–‘••‡••‡‡‘”Ǥ‡Žƒ›ƒ›„‡
…‘†‘‡†‘•—ˆϐ‹…‹‡–…ƒ—•‡„‡‹‰•Š‘™Ǥ
Ȉ ’’‡ƒŽ•ŠƒŽŽ„‡ƒ†‡‹”‹’Ž‹…ƒ–‡‹ ‘”‘Ǥ͵͸Ǥ
Ȉ ‹•’‘•ƒŽ‘ˆƒ’’‡ƒŽ–‘„‡ƒ†‡™‹–Š‹Ͷ›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š•—…Šƒ’’‡ƒŽ
™ƒ•ƒ†‡Ǥ
3. Appeal to High Court [Section 260A-260B]
Ȉ ’’‡ƒŽƒ›„‡ƒ†‡„›••‡••‡‡‘”‡’ƒ”–‡–Ǥ
Ȉ ’’‡ƒŽ•Š‘—Ž†„‡ƒ†‡™‹–Š‹ͳʹͲ†ƒ›•‘ˆ”‡…‡‹’–‘ˆ‘”†‡”‘ˆǤ‡Žƒ›ƒ›„‡…‘†‘‡†‘•—ˆϐ‹…‹‡–
…ƒ—•‡„‡‹‰•Š‘™„›ƒ’’‡ŽŽƒ–Ǥ
Ȉ ‘”‘ˆƒ’’‡ƒŽ•ŠƒŽŽ„‡ƒ•’‡”‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺƒ†–‹‡Ž‹‹–ˆ‘”†‹•’‘•ƒŽ‘ˆƒ’’‡ƒŽ•ŠƒŽŽ
ƒŽ•‘„‡ƒ•’‡”‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺǤ
4. Appeal to Supreme Court: [Section 261-262]
Ȉ ’’‡ƒŽƒ›„‡ƒ†‡„‡••‡••‡‡‘”‡’ƒ”–‡–Ǥ
Ȉ ’’‡ƒŽ‹•–‘„‡ƒ†‡™‹–Š‹ͻͲ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ‘”†‡”‘ˆ‹‰Š‘—”–Ǥȋ•’‡”‘†‡‘ˆ
‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺȌǤ‡Žƒ›ƒ›„‡…‘†‘‡†ƒ•’‡”‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺǤ
Ȉ ‘”‘ˆƒ’’‡ƒŽ•ŠƒŽŽ„‡ƒ•’‡”‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺƒ†–‹‡Ž‹‹–ˆ‘”†‹•’‘•ƒŽ‘ˆƒ’’‡ƒŽ•ŠƒŽŽ
ƒŽ•‘„‡ƒ•’‡”‘†‡‘ˆ‹˜‹Ž”‘…‡†—”‡ǡͳͻͲͺǤ

REVISIONS
REVISION BY THE COMMISSIONER OF INCOME TAX [SECTIONS 263 AND 264]
Š‡”‹‰Š––‘ϐ‹Ž‡•—…Šƒ’’‡ƒŽ•ƒ‰ƒ‹•––Š‡‘”†‡”•‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”‹•‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡‡’ƒ”–‡–Ǥ–‹•ˆ‘”
–Š‹•”‡ƒ•‘–Šƒ––Š‡‘‹••‹‘‡”Šƒ•„‡‡˜‡•–‡†™‹–Š”‡˜‹•‹‘ƒŽ’‘™‡”•—†‡”‡…–‹‘ʹ͸͵ǡ™Š‡”‡–Š‡‘”†‡”‘ˆ
–Š‡••‡••‹‰ˆϐ‹…‡”‹•‡””‘‡‘—•‹•‘ˆƒ”ƒ•‹–‹•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡Ǥ—–•—…Š”‡˜‹•‹‘ƒŽ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͻ͹

’‘™‡”…ƒ„‡‡š‡”…‹•‡†‘Ž›‹”‡•’‡…–‘ˆ‘”†‡”•™Š‹…Šƒ”‡‘––Š‡•—„Œ‡…–ƒ––‡”‘ˆƒ’’‡ƒŽ•ǤŠ‡”‡ƒ•‘‹•–Šƒ–‘…‡
ƒƒ••‡••‡–‘”†‡”‹•ƒ’’‡ƒŽ‡†ƒ‰ƒ‹•–ǡ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌŠƒ•‰‘––Š‡’‘™‡”•–‘‡Šƒ…‡–Š‡ƒ••‡••‡–
—†‡”‡…–‹‘ʹ͸͵ƒ†ƒ”‹‰Š–‘ˆƒ’’‡ƒŽ—’–‘–Š‡”‹„—ƒŽ‹•’”‘˜‹†‡†–‘–Š‡ƒ••‡••‡‡ƒ‰ƒ‹•––Š‡‘”†‡”•‘ˆ–Š‡
••‡••‹‰ˆϐ‹…‡”Ǥ–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš…ƒ”‡˜‹•‡ƒ‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰
ˆϐ‹…‡”ǣ

REVISION OF ORDERS PREJUDICIAL TO THE INTEREST OF REVENUE [SECTION 263]

Š‡‡’ƒ”–‡–Šƒ•‘”‹‰Š–‘ˆƒ’’‡ƒŽ–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍƒ‰ƒ‹•–ƒ›‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰
ˆϐ‹…‡”ǤŠ‡”‡ˆ‘”‡ǡ–Š‡‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšŠƒ•„‡‡‡’‘™‡”‡†–‘”‡˜‹•‡•—…Š‘”†‡”•‘ˆ–Š‡••‡••‹‰
ˆϐ‹…‡”ƒ•ƒ”‡’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–‘ˆ–Š‡”‡˜‡—‡Ǥ—…Š’‘™‡”ǡŠ‘™‡˜‡”ǡ‹••—„Œ‡…––‘…‡”–ƒ‹…‘†‹–‹‘•ƒ•
‰‹˜‡„‡Ž‘™ǣ
Š‡”‹…‹’ƒŽŠ‹‡ˆ‘‹••‹‘‡”‘”Š‹‡ˆ‘‹••‹‘‡”‘””‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›…ƒŽŽˆ‘”
ƒ†‡šƒ‹‡–Š‡”‡…‘”†‘ˆƒ›’”‘…‡‡†‹‰—†‡”–Š‹•…–ǡƒ†‹ˆŠ‡…‘•‹†‡”•–Šƒ–ƒ›‘”†‡”’ƒ••‡†–Š‡”‡‹„›–Š‡
••‡••‹‰ˆϐ‹…‡”‹•‡””‘‡‘—•‹•‘ˆƒ”ƒ•‹–‹•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡ǡŠ‡ƒ›ǡƒˆ–‡”‰‹˜‹‰–Š‡
ƒ••‡••‡‡ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ƒ†ƒˆ–‡”ƒ‹‰‘”…ƒ—•‹‰–‘„‡ƒ†‡•—…Š‹“—‹”›ƒ•Š‡†‡‡•‡…‡••ƒ”›ǡ
’ƒ•••—…Š‘”†‡”–Š‡”‡‘ƒ•–Š‡…‹”…—•–ƒ…‡•‘ˆ–Š‡…ƒ•‡Œ—•–‹ˆ›ǡ‹…Ž—†‹‰ƒ‘”†‡”‡Šƒ…‹‰‘”‘†‹ˆ›‹‰–Š‡
ƒ••‡••‡–ǡ‘”…ƒ…‡ŽŽ‹‰–Š‡ƒ••‡••‡–ƒ††‹”‡…–‹‰ƒˆ”‡•Šƒ••‡••‡–Ǥ
‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽ„‡†‡‡‡†–‘„‡‡””‘‡‘—•‹•‘ˆƒ”ƒ•‹–‹•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•
‘ˆ–Š‡”‡˜‡—‡ǡ‹ˆǡ‹–Š‡‘’‹‹‘‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ǡȂ
ȋƒȌ –Š‡‘”†‡”‹•’ƒ••‡†™‹–Š‘—–ƒ‹‰‹“—‹”‹‡•‘”˜‡”‹ϐ‹…ƒ–‹‘™Š‹…Š•Š‘—Ž†Šƒ˜‡„‡‡ƒ†‡Ǣ
ȋ„Ȍ –Š‡‘”†‡”‹•’ƒ••‡†ƒŽŽ‘™‹‰ƒ›”‡Ž‹‡ˆ™‹–Š‘—–‹“—‹”‹‰‹–‘–Š‡…Žƒ‹Ǣ
ȋ…Ȍ –Š‡‘”†‡”Šƒ•‘–„‡‡ƒ†‡‹ƒ……‘”†ƒ…‡™‹–Šƒ›‘”†‡”ǡ†‹”‡…–‹‘‘”‹•–”—…–‹‘‹••—‡†„›–Š‡‘ƒ”†—†‡”
•‡…–‹‘ͳͳͻǢ‘”
ȋ†Ȍ –Š‡‘”†‡”Šƒ•‘–„‡‡’ƒ••‡†‹ƒ……‘”†ƒ…‡™‹–Šƒ›†‡…‹•‹‘™Š‹…Š‹•’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡ǡ”‡†‡”‡†
„›–Š‡Œ—”‹•†‹…–‹‘ƒŽ‹‰Š‘—”–‘”—’”‡‡‘—”–‹–Š‡…ƒ•‡‘ˆ–Š‡ƒ••‡••‡‡‘”ƒ›‘–Š‡”’‡”•‘Ǥ
Š‡–‡”Dz”‡…‘”†dz•ŠƒŽŽ‹…Ž—†‡ƒ†•ŠƒŽŽ„‡†‡‡‡†ƒŽ™ƒ›•–‘Šƒ˜‡‹…Ž—†‡†ƒŽŽ”‡…‘”†•”‡Žƒ–‹‰–‘ƒ›’”‘…‡‡†‹‰
—†‡”–Š‹•…–ƒ˜ƒ‹Žƒ„Ž‡ƒ––Š‡–‹‡‘ˆ‡šƒ‹ƒ–‹‘„›–Š‡”‹…‹’ƒŽŠ‹‡ˆ‘‹••‹‘‡”‘”Š‹‡ˆ‘‹••‹‘‡”‘”
”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”Ǥ
…ƒ•‡–Š‡‘”†‡””‡ˆ‡””‡†–‘ƒ„‘˜‡Šƒ•„‡‡–Š‡•—„Œ‡…–ƒ––‡”‘ˆƒ›ƒ’’‡ƒŽǡ–Š‡’‘™‡”•‘ˆ–Š‡”‹…‹’ƒŽŠ‹‡ˆ
‘‹••‹‘‡”‘”Š‹‡ˆ‘‹••‹‘‡”‘””‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”Ǣ•ŠƒŽŽ‡š–‡†ƒ†•ŠƒŽŽƒŽ™ƒ›•
„‡†‡‡‡†–‘Šƒ˜‡‡š–‡†‡†–‘•—…Šƒ––‡”•ƒ•Šƒ†‘–„‡‡…‘•‹†‡”‡†ƒ††‡…‹†‡†‹•—…Šƒ’’‡ƒŽǤ
 ͷͻͺ Lesson 10 Ȉ EP-TL

‘‘”†‡”•ŠƒŽŽ„‡ƒ†‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌƒˆ–‡”–Š‡‡š’‹”›‘ˆ–™‘›‡ƒ”•ˆ”‘–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‹
™Š‹…Š–Š‡‘”†‡”•‘—‰Š––‘„‡”‡˜‹•‡†™ƒ•’ƒ••‡†Ǥ
…‘’—–‹‰–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘ˆ‘”–Š‡’—”’‘•‡•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌǡ–Š‡–‹‡–ƒ‡‹‰‹˜‹‰ƒ‘’’‘”–—‹–›–‘
–Š‡ƒ••‡••‡‡–‘„‡”‡Š‡ƒ”†—†‡”–Š‡’”‘˜‹•‘–‘•‡…–‹‘ͳʹͻƒ†ƒ›’‡”‹‘††—”‹‰™Š‹…Šƒ›’”‘…‡‡†‹‰—†‡”–Š‹•
•‡…–‹‘‹••–ƒ›‡†„›ƒ‘”†‡”‘”‹Œ—…–‹‘‘ˆƒ›…‘—”–•ŠƒŽŽ„‡‡š…Ž—†‡†Ǥ
–ƒ›„‡‘–‡†–Šƒ––Š‡Ž‹‹–‘ˆ–™‘›‡ƒ”•†‘‡•‘–ƒ’’Ž›–‘ƒ”‡˜‹•‹‘ƒŽ‘”†‡”™Š‹…ŠŠƒ†„‡‡’ƒ••‡†‹…‘•‡“—‡…‡•
‘ˆ‘”–‘‰‹˜‡‡ˆˆ‡…––‘ǡƒ›ϐ‹†‹‰‘”†‹”‡…–‹‘…‘–ƒ‹‡†‹ƒ‘”†‡”‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǡ–Š‡‹‰Š‘—”–‘”–Š‡
—’”‡‡‘—”–Ǥ—…Š”‡˜‹•‹‘ƒŽ‘”†‡”ƒ›„‡’ƒ••‡†ƒ–ƒ›–‹‡ȏ‡…–‹‘ʹ͸͵ȋ͵ȌȐǤ
Š‡ ™‘”† Dz‡””‘‡‘—•dz ‹…Ž—†‡• …ƒ•‡• ™Š‡”‡ –Š‡”‡ Šƒ• „‡‡ ƒ ˆƒ‹Ž—”‡ –‘ ƒ‡ –Š‡ ‡…‡••ƒ”› ‡“—‹”‹‡•Ǥ Š‡
‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšƒ›…‘•‹†‡”ƒ‘”†‡”‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”–‘„‡‡””‘‡‘—•‘–‘Ž›‹ˆ‹–…‘–ƒ‹•
•‘‡ƒ’’ƒ”‡–‡””‘”‘ˆ”‡ƒ•‘‹‰‘”‘ˆŽƒ™‘”‘ˆˆƒ…–‘–Š‡ˆƒ…‡‘ˆ‹–„—–ƒŽ•‘„‡…ƒ—•‡‹–‹•ƒ•–‡”‡‘–›’‡‘”†‡”™Š‹…Š
•‹’Ž›ƒ……‡’–•™Šƒ––Š‡ƒ••‡••‡‡Šƒ••–ƒ–‡†‹Š‹•”‡–—”ƒ†ˆƒ‹Ž•–‘ƒ‡‡“—‹”‹‡•™Š‹…Šƒ”‡…ƒŽŽ‡†ˆ‘”‹–Š‡
…‹”…—•–ƒ…‡•‘ˆ–Š‡…ƒ•‡ǤŠ‡••‡••‹‰ˆϐ‹…‡”‹•‘–‘Ž›ƒƒ†Œ—†‹…ƒ–‘”„—–ƒŽ•‘ƒ‹˜‡•–‹‰ƒ–‘”Ǥ‡…ƒ‘–”‡ƒ‹
’ƒ••‹˜‡‹–Š‡ˆƒ…‡‘ˆƒ”‡–—”™Š‹…Š‹•ƒ’’ƒ”‡–Ž›‹‘”†‡”„—–…ƒŽŽ•ˆ‘”ˆ—”–Š‡”‡“—‹”›Ǥ–‹•Š‹•†—–›–‘ƒ•…‡”–ƒ‹–Š‡
–”—–Š‘ˆ–Š‡ˆƒ…–••–ƒ–‡†‹”‡–—”™Š‡–Š‡…‹”…—•–ƒ…‡•‘ˆ–Š‡…ƒ•‡ƒ”‡•—…Šƒ•–‘’”‘˜‘‡‡“—‹”›Ǥ
Š‡™‘”†•Dz’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•‘ˆ”‡˜‡—‡dzƒ’’‡ƒ”‹‰—†‡”‡…–‹‘ʹ͸͵ȋͳȌŠƒ˜‡‘–„‡‡†‡ϐ‹‡†‹–Š‡
…–ǡ„—––Š‡›—•–‡ƒ–Šƒ– –Š‡‘”†‡”‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”‹••—…Šǡ–Šƒ– ‹–‹•‘–‹ƒ……‘”†ƒ…‡™‹–ŠŽƒ™ ‹
…‘•‡“—‡…‡™Š‡”‡‘ˆ–Š‡Žƒ™ˆ—Ž”‡˜‡—‡†—‡–‘–Š‡–ƒ–‡Šƒ•‘–„‡‡”‡ƒŽ‹•‡†‘”…ƒ‘–„‡”‡ƒŽ‹•‡†ǤŠ‡ŽŽƒŠƒ„ƒ†
‹‰Š ‘—”–•ǯ †‡…‹•‹‘ ‹ Commissioner of Income-tax v. Sunder Lal ȋͳͻ͹Ͷǡ ͻ͸  ͵ͳͲȌ ™ƒ• ˆ‘ŽŽ‘™‡† „› ‹– ‹
Commissioner of Income-tax v. Kashi Nath & Co. 1988, 170 ITR 28ȌŠ‘Ž†‹‰–Šƒ––Š‡’‘™‡”‘ˆ–Š‡‘‹••‹‘‡”‘ˆ
‹…‘‡Ǧ–ƒš—†‡”‡…–‹‘ʹ͸͵‘ˆ–Š‡…‘‡Ǧ–ƒš…–‹•“—ƒ•‹ǦŒ—†‹…‹ƒŽ‹…Šƒ”ƒ…–‡”Ǥ‡—•–‰‹˜‡”‡ƒ•‘•‹•—’’‘”–
‘ˆŠ‹•…‘…Ž—•‹‘–Šƒ––Š‡ƒ••‡••‡–‘”†‡”‹•‡””‘‡‘—•‹•‘ˆƒ”ƒ•‹–‹•’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•‘ˆ–Š‡‡˜‡—‡Ǥ
ˆŠ‡†‘‡•‘–‰‹˜‡–Š‡”‡ƒ•‘•ǡ–Š‡‘”†‡”…ƒ„‡˜‹–‹ƒ–‡†Ǥ ‘”‡šƒ’Ž‡ǡ‹ˆ–Š‡‘‹••‹‘‡”‹•‘ˆ–Š‡‘’‹‹‘–Šƒ––Š‡
••‡••‹‰ ˆϐ‹…‡” Šƒ† ƒŽŽ‘™‡† †‡†—…–‹‘• ‹ ‡š…‡•• ‘ˆ ™Šƒ– –Š‡› ™‡”‡ †—‡ ‹ ƒ ’ƒ”–‹…—Žƒ” …ƒ•‡ǡ •—…Š ‘”†‡” ‹•
‡””‘‡‘—•ƒ†’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡Ǥ‡…‡ǡ‹–ƒ›„‡”‡˜‹•‡†„›–Š‡‘‹••‹‘‡”‘ˆ…‘‡ƒšǤ
Malabar Industrial Co. Ltd. v. Commissioner Income Tax (1992,198 ITR 611) –Š‡‡”ƒŽƒ‹‰Š‘—”–Š‡Ž†–Šƒ––Š‡
™‘”†•Ǯ’”‡Œ—†‹…‹ƒŽ–‘–Š‡‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡ǯƒ”‡‘ˆ™‹†‡‹’‘”–ƒ†–Š‡›•Š‘—Ž†‘–„‡Ž‹‹–‡†–‘ƒ…ƒ•‡™Š‡”‡
–Š‡‘”†‡”’ƒ••‡†„›–Š‡…‘‡Ǧ–ƒšˆϐ‹…‡”ȋ‘™••‡••‹‰ˆϐ‹…‡”Ȍ…ƒ„‡…‘•‹†‡”‡†–‘„‡‘‡’”‡Œ—†‹…‹ƒŽ–‘–Š‡
”‡˜‡—‡ ƒ†‹‹•–”ƒ–‹‘ ƒ• •—…ŠǤ Š‡ “—‡•–‹‘ ™Š‡–Š‡” ƒ ‘”†‡” ‘ˆ –Š‡ …‘‡Ǧ–ƒš ˆϐ‹…‡” ‹• ’”‡Œ—†‹…‹ƒŽ –‘ –Š‡
‹–‡”‡•–•‘ˆ”‡˜‡—‡™‘—Ž††‡’‡†‘–Š‡ˆƒ…–•‘ˆ‡ƒ…Š…ƒ•‡ƒ†–Š‡”‡…ƒ„‡‘—‹˜‡”•ƒŽˆ‘”—Žƒƒ’’Ž‹…ƒ„Ž‡–‘
ϐ‹†‹‰‘—–ƒ›•—…Š’”‡Œ—†‹…‹ƒŽ‡””‘”ǤŠ‡‹‰Š‘—”–ˆ‘ŽŽ‘™‡†–Š‡”—Ž‡Žƒ‹††‘™„›–Š‡—’”‡‡‘—”–‹Tara Devi
Aggarwal v. CIT (1973, 88 ITR 523) „—–†‹••‡–‡†ˆ”‘–Š‡”—Ž‡Žƒ‹††‘™„›–Š‡ƒ†”ƒ•‹‰Š‘—”–‹Venkatakrishna
Rice Co. v. CIT (1987, 163 ITR 129)Ǥ
Š‡‘‹••‹‘‡”…ƒ”‡˜‹•‡ƒ‘”†‡”’ƒ••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”‘Ž›‹ˆ‹–‹•‡””‘‡‘—•ƒ†’”‡Œ—†‹…‹ƒŽ–‘–Š‡
‹–‡”‡•–• ‘ˆ –Š‡ ”‡˜‡—‡Ǣ ‹ˆ –Š‡ ‘”†‡” •‘—‰Š– –‘ „‡ ”‡˜‹•‡† ‹• ‘– ’”‡Œ—†‹…‹ƒŽ –‘ –Š‡ ‹–‡”‡•– ‘ˆ –Š‡ ”‡˜‡—‡ –Š‡
‘‹••‹‘‡” Šƒ• ‘ Œ—”‹•†‹…–‹‘ –‘ ”‡˜‹•‡ ‹–Ǥ Š‡ ˆƒ‹Ž—”‡ ‘ˆ –Š‡ ••‡••‹‰ ˆϐ‹…‡” –‘ †‡ƒŽ ™‹–Š –Š‡ …Žƒ‹ ‘ˆ –Š‡
ƒ••‡••‡‡‹–Š‡ƒ••‡••‡–‘”†‡”ƒ›„‡ƒ‡””‘”ǡ„—–ƒ‡””‘‡‘—•‘”†‡”„›‹–•‡Žˆ‹•‘–‡‘—‰Š–‘‰‹˜‡Œ—”‹•†‹…–‹‘
–‘–Š‡‘‹••‹‘‡”–‘”‡˜‹•‡‹–—†‡”‡…–‹‘ʹ͸͵Ǥ–—•–„‡ˆ—”–Š‡”•Š‘™–Šƒ––Š‡‘”†‡”™ƒ•’”‡Œ—†‹…‹ƒŽ–‘–Š‡
‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡Ǥ
REVISION OF ORDER IN THE INTEREST OF ASSESSEE [SECTION 264]
ƒ‰‰”‹‡˜‡†ƒ••‡••‡‡Šƒ•Š‹•‘”ƒŽ”‹‰Š–‘ˆƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ–Š‡••‡••‹‰ˆϐ‹…‡”–‘‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍ—†‡”‡…–‹‘ʹͶ͸ƒ†–Š‡”‡ƒˆ–‡”–‘–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ—†‡”‡…–‹‘ʹͷ͵Ǥ —”–Š‡”ǡ‡ƒ…Šƒ†‡˜‡”›
‘”†‡” ‘ˆ –Š‡ ••‡••‹‰ ˆϐ‹…‡” ‹• ‘– ƒ’’‡ƒŽƒ„Ž‡ –‘ –Š‡ ƒ’’‡ŽŽƒ–‡ ƒ—–Š‘”‹–‹‡• —†‡” ‡…–‹‘• ʹͶ͸ ƒ† ʹͷ͵Ǥ Š‡
ƒ••‡••‡‡ƒ›•‡‡Œ—•–‹…‡‹•—…Š…ƒ•‡•„›ƒ‹‰ƒƒ’’Ž‹…ƒ–‹‘—†‡”•‡…–‹‘ʹ͸Ͷ–‘–Š‡‘‹••‹‘‡”‘ˆ…‘‡
ƒšǤ ‘”‡šƒ’Ž‡ǡ”‡˜‹•‹‘Ž‹‡•–‘–Š‡‘‹••‹‘‡”ƒ‰ƒ‹•––Š‡Ž‡˜›‘ˆ’‡ƒŽ‹–‡”‡•–ˆ‘”‘–ˆ—”‹•Š‹‰–Š‡”‡–—”
‘ˆ–‘–ƒŽ‹…‘‡™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡ƒ‰ƒ‹•–™Š‹…Š‘ƒ’’‡ƒŽŠƒ•„‡‡’”‘˜‹†‡†Ǥ
Š‡ ”‡˜‹•‹‘ƒŽ ‘”†‡” ’ƒ••‡† —†‡” ‡…–‹‘ ʹ͸Ͷ …ƒ‘– „‡ ’”‡Œ—†‹…‹ƒŽ –‘ –Š‡ ‹–‡”‡•– ‘ˆ –Š‡ ƒ••‡••‡‡Ǥ Š‡ ™Š‘Ž‡
•—„Œ‡…–ƒ––‡”‹•†‹•…—••‡†„‡Ž‘™Ǧ
 Lesson 10 ȈAssessment, Appeals & Revision ͷͻͻ

1. Revision of order of subordinate authority only [Section 264(1) and Explanation 2]

Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‘ˆ…‘‡ƒšƒ›”‡˜‹•‡ƒ›‘”†‡”‘ˆƒƒ—–Š‘”‹–›•—„‘”†‹ƒ–‡–‘
Š‹Ǥ ‡’—–› ‘‹••‹‘‡”ǡ …‘‡ ƒš ˆϐ‹…‡”• ƒ† •’‡…–‘”• ‘ˆ …‘‡ ƒš ƒ”‡ •—„‘”†‹ƒ–‡ –‘ –Š‡ ”‹…‹’ƒŽ
‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ……‘”†‹‰–‘‡…–‹‘ͳͳͺǤ
2. Suo motu Revision [Section 264(1) and (2)]
Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›ǡ•—‘‘–—…ƒŽŽˆ‘”–Š‡”‡…‘”†‘ˆƒ›’”‘…‡‡†‹‰—†‡”–Š‹•…–‹
™Š‹…Šƒ›ǡ‘”†‡”Šƒ•„‡‡’ƒ••‡†„›ƒ›ƒ—–Š‘”‹–›•—„‘”†‹ƒ–‡–‘Š‹Ǥ‡ƒ›ƒ‡•—…Š‡“—‹”›ƒ†ƒ›’ƒ••
•—…Š‘”†‡”ƒ•Š‡–Š‹•ϐ‹–„—–•—…Š‘”†‡”…ƒ‘–„‡’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡ȏ‡…–‹‘ʹ͸ͶȋͳȌȐǤ‡ƒ›ƒ…–‹•—…Š
…‹”…—•–ƒ…‡•™‹–Š‘—–‘–‹…‡–‘–Š‡ƒ••‡••‡‡ƒ†™‹–Š‘—–‰‹˜‹‰Š‹ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ—…Š‡š‡”…‹•‡
‘ˆ–Š‡ƒ—–Š‘”‹–›‹•ƒ’—”‡Ž›†‡’ƒ”–‡–ƒŽƒˆˆƒ‹”ƒ†–Š‡ƒ••‡••‡‡ƒ›‘™‘–Š‹‰ƒ„‘—––Š‹•ǤŠ‹Ž‡ƒ…–‹‰•—‘
‘–—ǡ–Š‡‘‹••‹‘‡”ƒ›”‡˜‹•‡–Š‡‘”†‡”‘ˆŠ‹••—„‘”†‹ƒ–‡ƒ—–Š‘”‹–›™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡
‘”†‡”•‘—‰Š––‘„‡”‡˜‹•‡†ȏ‡…–‹‘ʹ͸ͶȋʹȌȐǤˆ–Š‡‘”†‡”Šƒ•„‡‡ƒ†‡‘”‡–Šƒ‘‡›‡ƒ”„ƒ…ǡ•—…Š‘”†‡”…ƒ‘–
„‡”‡˜‹•‡†„›Š‹Ǥ
–‹•‘„Ž‹‰ƒ–‘”›‘–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”–‘’ƒ••ƒ‘”†‡”—†‡”‡…–‹‘ʹ͸Ͷ™‹–Š‹ƒ’‡”‹‘†
‘ˆ‘‡›‡ƒ”ˆ”‘–Š‡‡†‘ˆϐ‹ƒ…‹ƒŽ›‡ƒ”‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡ˆ‘””‡˜‹•‹‘Ǥ…‘’—–‹‰–Š‡’‡”‹‘†‘ˆ
Ž‹‹–ƒ–‹‘ǡ –Š‡ –‹‡ –ƒ‡ ‹ ‰‹˜‹‰ ƒ ‘’’‘”–—‹–› –‘ –Š‡ ƒ••‡••‡‡ –‘ „‡ ”‡ǦŠ‡ƒ”† ȋ—†‡” ‡…–‹‘ ͳʹͻȌ ƒ† ƒ›
’‡”‹‘††—”‹‰™Š‹…Šƒ›’”‘…‡‡†‹‰—†‡”–Š‹•‡…–‹‘‹••–ƒ›‡†„›ƒ‘”†‡”‘”‹Œ—…–‹‘‘ˆƒ›…‘—”–‹•‡š…Ž—†‡†Ǥ
Š‘—‰Šƒ‘”†‡”Šƒ•ǡ–‘„‡’ƒ••‡†™‹–Š‹‘‡›‡ƒ”ǡƒ‘”†‡”‹”‡˜‹•‹‘ƒ›„‡’ƒ••‡†ƒ–ƒ›–‹‡‹…‘•‡“—‡…‡
‘ˆ‘”–‘‰‹˜‡‡ˆˆ‡…––‘ƒ›ϐ‹†‹‰•‘”†‹”‡…–‹‘•…‘–ƒ‹‡†‹ƒ‘”†‡”‘ˆ–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǡ‹‰Š‘—”–‘”–Š‡
—’”‡‡‘—”–Ǥ
3. Revision on application of the Assessee [Section 264(1), (3) & (5)]
Š‡ƒ••‡••‡‡‹•‡–‹–Ž‡†–‘ƒ‡ƒƒ’’Ž‹…ƒ–‹‘–‘–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšˆ‘”
–Š‡”‡˜‹•‹‘‘ˆƒ›‘”†‡”’ƒ••‡†„›ƒƒ—–Š‘”‹–›•—„‘”†‹ƒ–‡–‘Š‹Ǥ—…Šƒƒ’’Ž‹…ƒ–‹‘…ƒ„‡ƒ†‡™‹–Š‹‘‡
›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡‘”†‡”‹“—‡•–‹‘™ƒ•…‘—‹…ƒ–‡†–‘Š‹‘”ˆ”‘–Š‡†ƒ–‡‘™Š‹…ŠŠ‡‘–Š‡”™‹•‡
…ƒ‡ –‘ ‘™ ‘ˆ ‹–ǡ ™Š‹…Š‡˜‡” ‹• ‡ƒ”Ž‹‡” ȏ‡…–‹‘ ʹ͸Ͷȋ͵ȌȐǤ Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” ‹•
‡’‘™‡”‡†–‘ƒ†‹–ƒ„‡Žƒ–‡†ƒ’’Ž‹…ƒ–‹‘‹ˆŠ‡‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡ƒ••‡••‡‡™ƒ•’”‡˜‡–‡†„›•—ˆϐ‹…‹‡–…ƒ—•‡ˆ”‘
ƒ‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡Ǥ
Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡˜‹•‹‘„›–Š‡ƒ••‡••‡‡‹•ƒŽ™ƒ›•–‘„‡ƒ……‘’ƒ‹‡†„›ƒˆ‡‡‘ˆ•ǤͷͲͲȏ‡…–‹‘ʹ͸ͶȋͷȌȐǤ
”‡…‡‹’–‘ˆ–Š‡”‡˜‹•‹‘ƒ’’Ž‹…ƒ–‹‘ǡ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›…ƒŽŽˆ‘”–Š‡”‡…‘”†Ǥ‡ƒ›
ƒ‡•—…Š‡“—‹”›ƒ†’ƒ•••—…Š‘”†‡”ƒ•Š‡†‡‡•ϐ‹–Ǥ—…Šƒ‘”†‡”•Š‘—Ž†‘–„‡’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡
ȏ‡…–‹‘ʹ͸ͶȋͳȌȐǤ
Š‡”‡ ƒ”‡ –™‘ ‹’‘”–ƒ– ’‘‹–• ‘ˆ †‹•–‹…–‹‘ „‡–™‡‡ –Š‡ …ƒ•‡•ǣ ȋ‹Ȍ ™Š‡”‡ –Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘”
‘‹••‹‘‡”ƒ‡• •—‘ ‘–— ”‡˜‹•‹‘Ǣ ƒ† ȋ‹‹Ȍ™Š‡”‡ Š‡ ƒ‡• ƒ ”‡˜‹•‹‘ ‘ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ‘ˆ –Š‡ ƒ••‡••‡‡Ǥ
Š‹Ž‡ƒ…–‹‰•—‘‘–—ǡŠ‡…ƒ’ƒ••–Š‡”‡˜‹•‹‘ƒŽ‘”†‡”‘Ž›™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡‘”†‡”•‘—‰Š––‘„‡
”‡˜‹•‡†ǤŠ‡”‡‹•‘•—…Š–‹‡Ž‹‹– ™Š‡ –Š‡”‡˜‹•‹‘ƒŽ ‘”†‡”‹•’ƒ••‡†‘–Š‡„ƒ•‹•‘ˆƒ’’Ž‹…ƒ–‹‘ ϐ‹Ž‡†„› –Š‡
ƒ••‡••‡‡Ǥ…‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡™‹–Š‹–Š‡’‡”‹‘†‘ˆŽ‹‹–ƒ–‹‘’”‡•…”‹„‡†–Š‡”‡ˆ‘”ǡ‘”ƒˆ–‡”–Š‡…‘†‘ƒ–‹‘
‘ˆ†‡Žƒ›ǡ–Š‡‘”†‡”ƒ›„‡’ƒ••‡†ƒ–ƒ›–‹‡–Š‡”‡ƒˆ–‡”Ǥ‡…‘†Ž›ǡ™Š‹Ž‡ƒ…–‹‰•—‘‘–—ǡ–Š‡‘‹••‹‘‡”ƒ…–•‹
–Š‡‡š‡”…‹•‡‘ˆŠ‹•ƒ†‹‹•–”ƒ–‹˜‡Œ—”‹•†‹…–‹‘ƒ†ǡŠ‡…‡ǡŠ‡‹•‘–„‘—†–‘‰‹˜‡ƒŠ‡ƒ”‹‰–‘–Š‡ƒ••‡••‡‡Ǥˆƒ…–
–Š‡”‡˜‹‡™‹•’—”‡Ž›ƒ†‡’ƒ”–‡–ƒŽƒˆˆƒ‹”‹•—…Š…ƒ•‡•Ǥ–Š‡‘–Š‡”Šƒ†ǡ™Š‡Š‡‹•‘˜‡†„›–Š‡ƒ••‡••‡‡ˆ‘”
–Š‡•ƒ‹†’—”’‘•‡•ǡ–Š‡Œ—”‹•†‹…–‹‘…‘ˆ‡””‡†‘Š‹‹•ƒŒ—†‹…‹ƒŽ‘‡ƒ†ǡŠ‡…‡ǡŠ‡—•–‰‹˜‡ƒ‘’’‘”–—‹–›–‘–Š‡
ƒ••‡••‡‡–‘’—–ˆ‘”™ƒ”†Š‹•…ƒ•‡Ǥ
4. Nature of the order [Section 264]
Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” ƒ› ’ƒ•• •—…Š ‘”†‡” ƒ• Š‡ –Š‹• ϐ‹– ’”‘˜‹†‡† •—…Š ‘”†‡” ‹• ‘–
’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡ǤŠ‹•‹••‘™Š‡–Š‡”–Š‡‘‹••‹‘‡”ƒ…–••—‘‘–—ǡ‘”‘–Š‡”‡˜‹•‹‘ƒ’’Ž‹…ƒ–‹‘‘ˆ–Š‡
ƒ••‡••‡‡Ǥ‘”†‡”‘ˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”’ƒ••‡†‹”‡˜‹•‹‘…ƒ„‡•ƒ‹†–‘„‡’”‡Œ—†‹…‹ƒŽ
–‘–Š‡ƒ••‡••‡‡‘Ž›™Š‡Š‡‹•ǡƒ•ƒ”‡•—Ž–‘ˆ‹–ǡ’Žƒ…‡†‹ƒ†‹ˆˆ‡”‡–ƒ†™‘”•‡’‘•‹–‹‘–Šƒ–Šƒ–‹™Š‹…ŠŠ‡™ƒ•
’Žƒ…‡†„›–Š‡‘”†‡”—†‡””‡˜‹‡™Ǥˆ–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‡ˆˆ‡…–•ƒ”‡†—…–‹‘‘ˆ‹…‘‡
—†‡”‘‡Š‡ƒ†ƒ†ƒ‹…”‡ƒ•‡—†‡”ƒ‘–Š‡”„—–ǡ‘–Š‡™Š‘Ž‡”‡†—…‡•–Š‡ƒ••‡••‡–ǡŠ‹•‘”†‡”…ƒ‘–„‡•ƒ‹†
 ͸ͲͲ Lesson 10 Ȉ EP-TL

–‘„‡’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡ǤŠ‘—‰Š–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”ƒ›‘–…Šƒ‰‡–Š‡‘”†‡”‘ˆ
–Š‡•—„‘”†‹ƒ–‡ƒ—–Š‘”‹–›–‘–Š‡’”‡Œ—†‹…‡‘ˆ–Š‡ƒ••‡••‡‡ǡŠ‡ƒ›‘–‰‹˜‡–Š‡”‡Ž‹‡ˆƒ•‡†ˆ‘”„›–Š‡ƒ••‡••‡‡Ǥ
‘”†‡” ‘ˆ –Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡” ‘” ‘‹••‹‘‡” †‡…Ž‹‹‰ –‘ ‹–‡”ˆ‡”‡ ™‹–Š –Š‡ ‘”†‡” ‘ˆ –Š‡ •—„‘”†‹ƒ–‡
ƒ—–Š‘”‹–›…ƒ‘–„‡†‡‡‡†–‘„‡ƒ‘”†‡”’”‡Œ—†‹…‹ƒŽ–‘–Š‡ƒ••‡••‡‡ȋš’Žƒƒ–‹‘ͳ–‘‡…–‹‘ʹ͸ͶȌǤŠ‡’‘™‡”–‘
’ƒ•••—…Š‘”†‡”•ƒ•Š‡†‡‡•ϐ‹–‹•‘–ƒƒ”„‹–”ƒ”›‘‡–‘„‡‡š‡”…‹•‡†ƒ……‘”†‹‰–‘Š‹•ˆƒ…›Ǥ‡—•–ƒ…–ƒ……‘”†‹‰
–‘–Š‡”—Ž‡•‘ˆ”‡ƒ•‘ƒ†Œ—•–‹…‡ǡ‘–ƒ……‘”†‹‰–‘’”‹˜ƒ–‡‘’‹‹‘ǡƒ……‘”†‹‰–‘Žƒ™‘–Š—‘—”Ǥ‹•†‹•…”‡–‹‘‹•
‘––‘„‡ƒ”„‹–”ƒ”›ǡ˜ƒ‰—‡ƒ†ˆƒ…‹ˆ—Žǡ„—–Ž‡‰ƒŽƒ†”‡‰—Žƒ”Ǥ–‹•ƒ’‘™‡”…‘—’Ž‡†™‹–Š†—–›–‘‡š‡”…‹•‡‹–‹–Š‡
‹–‡”‡•–‘ˆŒ—•–‹…‡–‘–Š‡ƒ••‡••‡‡Ǥ
CIRCUMSTANCES IN WHICH NO REVISION CAN BE MADE [SECTION 264(4)]
Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒš…ƒ‘–”‡˜‹•‡–Š‡‘”†‡”‘ˆŠ‹••—„‘”†‹ƒ–‡ƒ—–Š‘”‹–›‹
–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ͳǤ ˆ–Š‡‘”†‡”‹•ƒ’’‡ƒŽƒ„Ž‡–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍǡ•—…Š‘”†‡”…ƒ‘–„‡”‡˜‹•‡†—–‹Ž–Š‡–‹‡™‹–Š‹
™Š‹…Š•—…Šƒ’’‡ƒŽƒ›„‡ƒ†‡‡š’‹”‡•Ǥˆƒƒ’’‡ƒŽŠƒ•„‡‡ƒ†‡–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍǡ–Š‡
”‡˜‹•‹‘ƒŽ’‘™‡”…ƒ‘–„‡‡š‡”…‹•‡†™Š‹Ž‡–Š‡ƒ’’‡ƒŽ‹•’‡†‹‰„—–‹–ƒ›„‡‡š‡”…‹•‡†ƒˆ–‡”–Š‡ƒ’’‡ƒŽŠƒ•
„‡‡†‹•’‘•‡†‘ˆǤŠ‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍˆ‘”–Š‡’—”’‘•‡‘ˆ‡…–‹‘ʹ͸Ͷ‹•ƒƒ—–Š‘”‹–›•—„‘”†‹ƒ–‡–‘
–Š‡‘‹••‹‘‡”‘ˆ…‘‡Ǧ–ƒšǤ‡…‡ǡ–Š‡‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ…ƒ„‡”‡˜‹•‡†Ǥ
ʹǤ ˆ–Š‡‘”†‡”‹•ƒ’’‡ƒŽƒ„Ž‡–‘–Š‡‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‘”–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǡ”‡˜‹•‹‘ƒŽ’‘™‡”…ƒ‘–
„‡‡š‡”…‹•‡†—–‹Ž–Š‡–‹‡™‹–Š‹™Š‹…Š•—…Šƒ’’‡ƒŽƒ›„‡ƒ†‡‡š’‹”‡•Ǥ—–ǡ‹•—…Š…ƒ•‡•ǡ‹ˆ–Š‡ƒ••‡••‡‡
™ƒ‹˜‡•Š‹•”‹‰Š–‘ˆƒ’’‡ƒŽǡ–Š‡‘‹••‹‘‡”ƒ›”‡˜‹•‡–Š‡‘”†‡”‡˜‡„‡ˆ‘”‡–Š‡–‹‡ˆ‘”ƒ’’‡ƒŽŠƒ•‡š’‹”‡†Ǥ
—–‘…‡–Š‡‘”†‡”Šƒ•„‡‡ƒ†‡–Š‡•—„Œ‡…–‘ˆƒƒ’’‡ƒŽ–Š‡”‡˜‹•‹‘ƒŽ’‘™‡”•…‘‡–‘ƒ‡†Ǥ‘”†‡”
…ƒ„‡•ƒ‹†–‘„‡ƒ†‡–Š‡Dz•—„Œ‡…–‘ˆƒƒ’’‡ƒŽdz‘Ž›™Š‡‹–‹•–Š‡•—„Œ‡…–‘ˆƒ‡ˆˆ‡…–‹˜‡ƒ’’‡ƒŽǤˆ–Š‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‘”–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽ”‡ˆ—•‡•–‘‡–‡”–ƒ‹ƒƒ’’‡ƒŽ‘–Š‡‰”‘—†–Šƒ–‹–‹•–‹‡
„ƒ””‡†ǡ ‘” ‰”ƒ–• ’‡”‹••‹‘ –‘ –Š‡ ƒ’’‡ŽŽƒ– –‘ ™‹–Š†”ƒ™ –Š‡ ƒ’’‡ƒŽǡ –Š‡ ‘”†‡” …ƒ‘– „‡ •ƒ‹† –‘ „‡ –Š‡
Dz•—„Œ‡…–‘ˆƒƒ’’‡ƒŽdzƒ†–Š‡ƒ••‡••‡‡™‘—Ž†„‡‡–‹–Ž‡†–‘ƒ’’Ž›–‘–Š‡‘‹••‹‘‡”ˆ‘””‡˜‹•‹‘Ǥ
Remedy against the Revisional Order
‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”’ƒ••‡†—†‡”‡…–‹‘ʹ͸Ͷ‹•‘–ƒ’’‡ƒŽƒ„Ž‡–‘–Š‡”‹„—ƒŽǤ‘”†‘‡•ƒ”‡ˆ‡”‡…‡Ž‹‡
ƒ‰ƒ‹•–•—…Šƒ‘”†‡”–‘–Š‡‹‰Š‘—”–•‹…‡ƒ”‡ˆ‡”‡…‡–‘–Š‡‹‰Š‘—”–Ž‹‡•‘Ž›ƒ‰ƒ‹•–ƒ‘”†‡”’ƒ••‡†„›–Š‡
”‹„—ƒŽǤ‹…‡–Š‡‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”‹•Œ—†‹…‹ƒŽ‘”“—ƒ•‹ǦŒ—†‹…‹ƒŽ‹…Šƒ”ƒ…–‡”ǡ‹–‹•™‹–Š‹–Š‡ƒ„‹–‘ˆ–Š‡
‹‰Š‘—”–ǯ•Œ—”‹•†‹…–‹‘—†‡””–‹…Ž‡ʹʹ͸‘ˆ–Š‡‘•–‹–—–‹‘ƒ†ƒ’‡–‹–‹‘ˆ‘”ƒ™”‹–‘ˆ…‡”–‹‘”ƒ”‹–‘“—ƒ•Šƒ
—Œ—•–‘”‹ŽŽ‡‰ƒŽ‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”‹•ƒ‹–ƒ‹ƒ„Ž‡Ǥ

OFFENCES AND PENALTIES

 ƒ••‡••‡‡ •Š‘—Ž† ‘–‡ –Šƒ– …‘’Ž‹ƒ…‡ ™‹–Š Ž‡‰ƒŽ ˆ‘”ƒŽ‹–‹‡• ‹• Ž‡•• …‘•–Ž› –Šƒ –Š‡ ’ƒ›‡– ‘ˆ ’‡ƒŽ–‹‡• ‘”
‹–‡”‡•– ‘ –ƒš †—‡•Ǥ Š‡”‡ ƒ”‡ •‡˜‡”ƒŽ ˆ‘”ƒŽ‹–‹‡• –‘ „‡ …‘’Ž‹‡† ™‹–Š –‘ ƒ˜‘‹† ƒ› ’‡ƒŽ–›Ǥ  –Š‹• …‘‡…–‹‘ǡ
”‡ˆ‡”‡…‡ƒ›„‡ƒ†‡–‘–Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡•—ƒ”‹œ‹‰–Š‡†‡ˆƒ—Ž–•ƒ†’‡ƒŽ–‹‡•–Š‡”‡ˆ‘”Ǥ
Šƒ’–‡”•ƒ†‘ˆ…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǡ…‘–ƒ‹˜ƒ”‹‘—•’”‘˜‹•‹‘•‡’‘™‡”‹‰ƒ…‘‡Ǧ–ƒš—–Š‘”‹–›
–‘Ž‡˜›’‡ƒŽ–›‹…ƒ•‡‘ˆ…‡”–ƒ‹†‡ˆƒ—Ž–•ǤŠ‡˜ƒ”‹‘—•–›’‡•‘ˆ’‡ƒŽ–‹‡•ƒ”‡„”‹‡ˆŽ›†‡•…”‹„‡†‹–Š‡–ƒ„Ž‡‰‹˜‡
„‡Ž‘™ǣ

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ͳͶͲȋ͵Ȍ ƒ‹Ž—”‡–‘’ƒ›–Š‡•‡Žˆƒ••‡••‡– –ƒš‘” —…Š ƒ‘—– ƒ• –Š‡ ƒš‹ƒ””‡ƒ”• ••‡••‹‰
‹–‡”‡•–ƒ†ˆ‡‡‘”’ƒ”– –Š‡”‡‘ˆ ‘” ••‡••‹‰ˆϐ‹…‡”ƒ› ˆϐ‹…‡”
„‘–Š —†‡” ‡…–‹‘ ͳͶͲȋͳȌ ‹’‘•‡
ͳͷͺ  ‡–‡”‹ƒ–‹‘‘ˆ—†‹•…Ž‘•‡† ‹…‘‡ ‹‹— ͳͲͲΨ ‘ˆ ƒš‹—͵ͲͲΨ‘ˆ ••‡••‹‰
‘ˆ„Ž‘…’‡”‹‘† –ƒšŽ‡˜‹ƒ„Ž‡ ‹ ”‡•’‡…– –ƒšŽ‡˜‹ƒ„Ž‡‹ ˆϐ‹…‡”‘”
‘ˆ —†‹•…Ž‘•‡†‹…‘‡ ”‡•’‡…–‘ˆ ‘‹••‹‘‡”
—†‹•…Ž‘•‡†‹…‘‡ ȋ’’‡ƒŽ•Ȍ
Lesson 10 ȈAssessment, Appeals & Revision ͸Ͳͳ

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ʹʹͳȋͳȌ ƒ‹Ž—”‡ –‘ ƒ‡ ’ƒ›‡– ‘ˆ –ƒšƒ† —…Š ƒ‘—– ƒ• –Š‡ ƒš‹ƒ””‡ƒ”• Ǧ†‘Ǧ
‹–‡”‡•–’ƒ›ƒ„Ž‡—†‡” ‡…–‹‘ ʹʹͲȋʹȌ ••‡••‹‰ ˆϐ‹…‡” ƒ›
™‹–Š‹ –Š‡ ’”‡•…”‹„‡†–‹‡Ž‹‹– ‹’‘•‡
ʹ͵Ͷ ƒ‹Ž—”‡ –‘ ϐ‹Ž‡ •–ƒ–‡‡– ™‹–Š‹ –‹‡ ‡‡• ‘ˆ •Ǥ ʹͲͲ ’‡” ‘—– ‘ˆ –ƒš ǦǦǦ
’”‡•…”‹„‡† ‹ •‡…–‹‘ ʹͲͲȋ͵Ȍ ‘” ‹ †ƒ› †—”‹‰ ™Š‹…Š †‡†—…–‹„Ž‡‘”
’”‘˜‹•‘–‘•‡…–‹‘ʹͲ͸ȋ͵Ȍ ˆƒ‹Ž—”‡…‘–‹—‡• …‘ŽŽ‡…–‹„Ž‡
ʹ͵Ͷ ƒ‹Ž—”‡ –‘ ϐ‹Ž‡ ‹…‘‡ –ƒš ”‡–—” ‡‡• ‘ˆ •ǤͷǡͲͲͲ‹ˆ ǦǦǦǦǦ ǦǦǦ
™‹–Š‹ –Š‡ –‹‡ ƒ• ‡–‹‘‡† —†‡” ”‡–—”‹•ˆ—”‹•Š‡†‘
•‡…–‹‘ͳ͵ͻ ‘”„‡ˆ‘”‡͵ͳ•–
‡…‡„‡”‘ˆ
••‡••‡–‡ƒ” ‡‡•
‘ˆ •ǤͳͲǡͲͲͲ‹ƒ›
‘–Š‡”…ƒ•‡
Note: ‡‡• ‘ˆ •Ǥ
ͳǡͲͲͲ‹ˆ–‘–ƒŽ‹…‘‡‘ˆ
–Š‡’‡”•‘†‘‡•‘–
‡š…‡‡† •ǤͷǡͲͲǡͲͲͲ
ʹ͹Ͳ ‡ƒŽ–› ˆ‘” —†‡” ”‡’‘”–‹‰ ƒ† ͷͲΨ ‘ˆ –ƒš ’ƒ›ƒ„Ž‡ ǦǦǦǦǦǦǦ ••‡••‹‰
‹•”‡’‘”–‹‰‘ˆ…‘‡ ‘ —†‡””‡’‘”–‡† ˆϐ‹…‡”‘”
‹…‘‡ȋʹͲͲΨ‹…ƒ•‡ ‘‹••‹‘‡”
‘ˆ‹•”‡’‘”–‹‰‘ˆ ȋ’’‡ƒŽ•Ȍ
‹…‘‡Ȍ
ʹ͹ͳȋͳȌ ƒ‹Ž—”‡ –‘ …‘’Ž› ™‹–Šǣ ȋ‹Ȍ ƒ ‘–‹…‡ •ǤͳͲǡͲͲͲ’‡”ˆƒ‹Ž—”‡ •ǤͳͲǡͲͲͲ’‡” ••‡••‹‰
ȋ„Ȍ —†‡” ‡…–‹‘• ͳͳͷȋʹȌǢ ͳͳͷǢ ˆƒ‹Ž—”‡ ˆϐ‹…‡”
ͳͶʹȋͳȌǢ ͳͶ͵ȋʹȌ ‘”ǡ ȋ‹‹Ȍ ƒ †‹”‡…–‹‘
—†‡”‡…–‹‘ͳͶʹȋʹȌ
Note: Š‹••‡…–‹‘•ŠƒŽŽ‘–ƒ’’Ž› –‘ƒ†
‹ ”‡Žƒ–‹‘–‘ ƒ› ƒ••‡••‡– ˆ‘” –Š‡ 
…‘‡…‹‰‘‘”ƒˆ–‡”ͳǤͶǤʹͲͳ͹
ʹ͹ͳȋͳȌ ‘…‡ƒŽ‡– ‘ˆ –Š‡ ’ƒ”–‹…—Žƒ”• ‘ˆ ͳͲͲΨ ‘ˆ –ƒš •‘—‰Š– ͵ͲͲΨ‘ˆ–Š‡ ••‡••‹‰
ȋ…Ȍ ‹…‘‡ ‘” ˆ—”‹•Š‹‰ ‘ˆ ‹ƒ……—”ƒ–‡ –‘„‡‡˜ƒ†‡† ƒ‘—–‘ˆ –ƒš ˆϐ‹…‡”‘”
’ƒ”–‹…—Žƒ”•‘ˆ‹…‘‡Ǥ •‘—‰Š– –‘ „‡ ‘‹••‹‘‡”
Note: Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• •‡…–‹‘ ‡˜ƒ†‡† ȋ’’‡ƒŽ•Ȍ
•ŠƒŽŽ ‘– ƒ’’Ž› –‘ ƒ† ‹ ”‡Žƒ–‹‘–‘
ƒ›ƒ••‡••‡–ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”
…‘‡…‹‰‘ ‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ
’”‹ŽǡʹͲͳ͹
ʹ͹ͳȋͶȌ ‹•–”‹„—–‹‘ ‘ˆ ’”‘ϐ‹– „› ”‡‰‹•–‡”‡† ’–‘ͳͷͲΨ‘ˆ Ǧ†‘Ǧ ••‡••‹‰
ϐ‹”‘–Š‡”™‹•‡–Šƒ‹ƒ……‘”†ƒ…‡™‹–Š †‹ˆˆ‡”‡…‡„‡–™‡‡ ˆϐ‹…‡”‘”
’ƒ”–‡”•Š‹’ †‡‡† ƒ† ƒ• ƒ ”‡•—Ž– ‘ˆ –ƒš‘’ƒ”–‡”ǯ• ‘‹••‹‘‡”
™Š‹…Š ’ƒ”–‡” Šƒ• ”‡–—”‡† ‹…‘‡ ‹…‘‡ ƒ••‡••‡†ƒ† ȋ’’‡ƒŽ•Ȍ
„‡Ž‘™ –Š‡ ”‡ƒŽ ‹…‘‡ –ƒš‘ ”‡–—”‡†
Note: Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• •‡…–‹‘ ‹…‘‡‹ ƒ††‹–‹‘–‘
•ŠƒŽŽ ‘– ƒ’’Ž› –‘ ƒ† ‹ ”‡Žƒ–‹‘–‘ –ƒš’ƒ›ƒ„Ž‡
ƒ›ƒ••‡••‡–ˆ‘”–Š‡ƒ••‡••‡–›‡ƒ”
…‘‡…‹‰‘ ‘”ƒˆ–‡”–Š‡ͳ•–†ƒ›‘ˆ
’”‹ŽǡʹͲͳ͹
͸Ͳʹ Lesson 10 Ȉ EP-TL

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ʹ͹ͳ ƒ‹Ž—”‡ –‘ ‡‡’ǡ ƒ‹–ƒ‹ ‘” ”‡–ƒ‹ •ǤʹͷǡͲͲͲ •ǤʹͷǡͲͲͲ ••‡••‹‰
„‘‘•‘ˆƒ……‘—–‡–…Ǥƒ•”‡“—‹”‡† —†‡” ˆϐ‹…‡”‘”
‡…–‹‘ͶͶ ‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍ
ʹ͹ͳ ƒ‹Ž—”‡ –‘ ‡‡’ ƒ† ƒ‹–ƒ‹ •— ‡“—ƒŽ –‘ ʹΨ ǦǦǦǦǦǦ Ǧ†‘Ǧ
‹ˆ‘”ƒ–‹‘ƒ††‘…—‡– ‹”‡•’‡…–‘ˆ ‘ˆ–Š‡˜ƒŽ—‡‘ˆ‡ƒ…Š
‹–‡”ƒ–‹‘ƒŽ –”ƒ•ƒ…–‹‘ ‘” •’‡…‹ϐ‹‡† ‹–‡”Ǧ ƒ–‹‘ƒŽ
†‘‡•–‹… –”ƒ•ƒ…–‹‘ ‘” ˆƒ‹Ž• –‘ ”‡’‘”– –”ƒ•ƒ…–‹‘ ‘”
•—…Š –”ƒ•ƒ…–‹‘• ‘” ƒ‹–ƒ‹• ‘” •’‡…‹ϐ‹‡††‘‡•–‹…
ˆ—”‹•Š‡• ƒ ‹…‘””‡…– ‹ˆ‘”ƒ–‹‘ ‘” –”ƒ•ƒ…–‹‘Ǥ
†‘…—‡–Ǥ •ǤͷǡͲͲǡͲͲͲ
ȏˆ ƒ› ’‡”•‘ ˆƒ‹Ž• –‘ ˆ—”‹•Š –Š‡
‹ˆ‘”ƒ–‹‘ ƒ† –Š‡ †‘…—‡– ƒ•
”‡“—‹”‡† —†‡” •—„Ǧ•‡…–‹‘  ȋͶȌ ‘ˆ
•‡…–‹‘ ͻʹǡ –Š‡ ’”‡•…”‹„‡† ‹…‘‡Ǧ
–ƒš ƒ—–Š‘”‹–› ”‡ˆ‡””‡† –‘ ‹–Š‡•ƒ‹†
•—„Ǧ•‡…–‹‘ƒ›†‹”‡…––Šƒ–•—…Š’‡”•‘ ǦǦǦǦǦǦ
•ŠƒŽŽ’ƒ›ǡ„›™ƒ› ‘ˆ ’‡ƒŽ–›ǡ ƒ •— ‘ˆ
ϐ‹˜‡ Š—†”‡† –Š‘—•ƒ† ”—’‡‡•Ǥ
‡†‡– ˜‹†‡ ‹ƒ…‡ …–ǡ ʹͲͳ͸
™Ǥ‡ǤˆǤͳ•– ’”‹ŽǡʹͲͳ͹Ȑ
ʹ͹ͳ †‹•…Ž‘•‡† ‹…‘‡ ˆ‘—† †—”‹‰ ͳͲΨ ‘ˆ ǦǦǦǦǦǦ ••‡••‹‰
•‡ƒ”…Š ™Š‡”‡ •‡ƒ”…Š Šƒ• „‡‡ —†‹•…Ž‘•‡†…‘‡Ǥ ˆϐ‹…‡”
‹‹–‹ƒ–‡†ǣ ͳͲΨǡ ʹͲΨ ‘” ͸ͲΨ
‘‘”„‡ˆ‘”‡ͳǤ͹ǤʹͲͳʹ ‘ˆ—†‹•…Ž‘•‡†
‘ ‘” ƒˆ–‡” ͳǤ͹ǤʹͲͳʹ „—– „‡ˆ‘”‡ ‹…‘‡ǡ ƒ•–Š‡…ƒ•‡
ͳͷǤͳʹǤʹͲͳ͸ ƒ›„‡Ǥ
‘‘”ƒˆ–‡”ͳͷǤͳʹǤʹͲͳ͸ ͵ͲΨ ‘” ͸ͲΨ ‘ˆ
—†‹•…Ž‘•‡†‹…‘‡ǡƒ•
–Š‡…ƒ•‡ƒ›„‡Ǥ
ʹ͹ͳ ‡ƒŽ–› ™Š‡”‡ ‹…‘‡ ‹…Ž—†‡• ƒ› ͳͲΨ‘ˆ–ƒš’ƒ›ƒ„Ž‡‘ ǦǦǦǦ ••‡••‹‰
‹…‘‡ ”‡ˆ‡””‡† –‘ ‹ ‡…–‹‘ ͸ͺǡ —†‹•…Ž‘•‡†‹…‘‡ ˆϐ‹…‡”
‡…–‹‘ ͸ͻǡ ‡…–‹‘ ͸ͻǡ‡…–‹‘ ͸ͻǡ
‡…–‹‘ ͸ͻ ‘” ‡…–‹‘͸ͻǤ
ʹ͹ͳ ƒ‹Ž—”‡ –‘ ‰‡– ƒ……‘—–• ƒ—†‹–‡†—†‡” ‡ǦŠƒŽˆ ’‡” …‡– ‘ˆ •ǤͳǡͷͲǡͲͲͲ ••‡••‹‰
‡…–‹‘ ͶͶ ‘” ˆ—”‹•Š ƒ—†‹– ”‡’‘”– ‘–ƒŽ ƒŽ‡•ǡ —”‘˜‡” ˆϐ‹…‡”
ƒŽ‘‰ ™‹–Š ”‡–—” ‘ˆ ‹…‘‡ ‘”
”‘••‡…‡‹’–•
ʹ͹ͳ ƒ‹Ž—”‡  –‘  ˆ—”‹•Š  ”‡’‘”–  —†‡” •ǤͳǡͲͲǡͲͲͲ Ȅ Ǧ†‘Ǧ
‡…–‹‘ͻʹ
ʹ͹ͳ ƒ‹Ž—”‡ –‘ †‡†—…– –ƒš ƒ– •‘—”…‡ ‘”  •— ‡“—ƒŽ –‘ –Š‡ Ǧ†‘Ǧ
ˆƒ‹Ž—”‡ –‘ ’ƒ› ™Š‘ŽŽ› ‘” ’ƒ”–Ž›–Š‡ –ƒš ƒ‘—– ‘ˆ –ƒš
—Ȁ• ͳͳͷǦȋʹȌ ‘” •‡…‘† ’”‘˜‹•‘ –‘ ‘‹––‡† –‘ „‡
‡…–‹‘ͳͻͶǦ †‡†—…–‡†‘”’ƒ‹†
ʹ͹ͳ ƒ‹Ž—”‡–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡ ͳͲͲΨ ‘ˆ –ƒš •‘—‰Š– Ȅ ’‘•‡†„›
–‘ –Š‡ ‘‹–
„‡…‘ŽŽ‡…–‡† ‘‹••‹‘‡”
Lesson 10 ȈAssessment, Appeals & Revision ͸Ͳ͵

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ʹ͹ͳ ƒ‹‰ƒ›Ž‘ƒ‘”†‡’‘•‹–‘”•’‡…‹ϐ‹‡†  •— ‡“—ƒŽ –‘ –Š‡ Ǧ†‘Ǧ
•—‹…‘–”ƒ˜‡–‹‘‘ˆ‡…–‹‘ʹ͸ͻǤ ƒ‘—– ‘ˆ Ž‘ƒ ‘”
Dz’‡…‹ϐ‹‡† •—dz ‡ƒ• ƒ› •— ‘ˆ †‡’‘•‹– ‘” •’‡…‹ϐ‹‡†
‘‡›”‡…‡‹˜ƒ„Ž‡ǡ™Š‡–Š‡”ƒ• ƒ†˜ƒ…‡ ƒ‘—– •‘ –ƒ‡ ‘”
‘”‘–Š‡”™‹•‡ǡ‹”‡Žƒ–‹‘ –‘–”ƒ•ˆ‡”‘ˆ ƒ……‡’–‡†
ƒ ‹‘˜ƒ„Ž‡ ’”‘’‡”–›ǡ ™Š‡–Š‡” ‘”
‘––Š‡ –”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡Ǥ
ʹ͹ͳ ‡…‡‹˜‹‰ ‘ˆ ƒ ƒ‘—–  ‘ˆ •Ǥ  •— ‡“—ƒŽ –‘ –Š‡ ’‘•‡†„›
ʹǡͲͲǡͲͲͲ ‘” ‘”‡ ‘–Š‡”™‹•‡ –Šƒ ƒ ƒ‘—–‘ˆ•—…Š”‡…‡‹’–Ǥ –Š‡ ‘‹–
Ȁ… ’ƒ›‡‡ …Š‡“—‡Ȁ †”ƒˆ–Ȁǡ ‹ ‘™‡˜‡”ǡ’‡ƒŽ–›•ŠƒŽŽ ‘‹••‹‘‡”
…‘–”ƒ˜‡–‹‘‘ˆ’”‘˜‹•‹‘•‘ˆSection ‘–„‡‹’‘•‡†ǡ‹ˆ•—…Š
269ST ’‡”•‘ ’”‘˜‡• –Šƒ–
–Š‡”‡ ™‡”‡ ‰‘‘† ƒ†
•—ˆϐ‹…‹‡– ”‡ƒ•‘• ˆ‘”
–Š‡…‘–”ƒ˜‡–‹‘Ǥ
ʹ͹ͳ ƒ‹Ž—”‡–‘’”‘˜‹†‡ˆƒ…‹Ž‹–›ˆ‘” ƒ……‡’–Ǧ •ǤͷǡͲͲͲ”—’‡‡• ’‘•‡†
‹‰ ’ƒ›‡– –Š”‘—‰Š ’”‡•…”‹„‡† ˆ‘” ‡˜‡”›†ƒ›‘ˆ „›–Š‡
‡Ž‡…–”‘‹… ‘†‡• ‘ˆ ’ƒ›‡– ƒ• ”‡Ǧ †‡ˆƒ—Ž– ‘‹–
ˆ‡””‡† –‘ ‹ •‡…–‹‘ ʹ͸ͻ ȋ™Ǥ‡ǤˆǤ ‘‹•Ǧ
ͳǤͳͳǤʹͲͳͻȌ •‹‘‡”
ʹ͹ͳ ‡’ƒ›‡–        ‘ˆ        †‡’‘•‹– ‘”  •— ‡“—ƒŽ –‘ –Š‡ Ǧ†‘Ǧ
•’‡…‹ϐ‹‡† ƒ†˜ƒ…‡ ‹ …‘–”ƒ˜‡–‹‘ ‘ˆ ƒ‘—– ‘ˆ †‡’‘•‹– ‘”
‡…–‹‘ ʹ͸ͻǤ Dz’‡…‹ϐ‹‡† ƒ†˜ƒ…‡dz •’‡…‹ϐ‹‡†ƒ‘—–
‡ƒ• ƒ› •— ‘ˆ ‘‡› ‹ –Š‡
ƒ–—”‡ ‘ˆ ƒ†˜ƒ…‡ǡ „› ™Šƒ–‡˜‡” ƒ‡
…ƒŽŽ‡†ǡ ‹ ”‡Žƒ–‹‘ –‘ –”ƒ•ˆ‡” ‘ˆ ƒ
‹‘˜ƒ„Ž‡ ’”‘’‡”–›ǡ ™Š‡–Š‡” ‘” ‘–
–”ƒ•ˆ‡”–ƒ‡•’Žƒ…‡Ǥ
ʹ͹ͳ  ƒ‹Ž—”‡  –‘  —”‹•Š   –ƒ–‡‡– ‘ˆ •ǤͷͲͲ’‡”†ƒ›†—”‹‰
‹ƒ…‹ƒŽ ”ƒ•ƒ…–‹‘ ‘” ‡’‘”–ƒ„Ž‡ ™Š‹…Š •—…Š ˆƒ‹Ž—”‡
……‘—– ‹ ‡…–‹‘ʹͺͷȋʹȌ …‘–‹—‡• Rs. ͳͲͲͲ
ƒ‹Ž—”‡ –‘ —”‹•Š—ƒŽˆ‘”ƒ–‹‘ ’‡” †ƒ› †—”‹‰ –Š‡
‡–—”‹‡…–‹‘ ʹͺͷȋͷȌ ˆƒ‹Ž—”‡ …‘–‹—‡•
„ ‡ ‰ ‹   ‹  ‰
‹‡†‹ƒ–‡Ž› ƒˆ–‡” –Š‡
‡š’‹”› ‘ˆ –‹‡ ’‡”‹‘†
•’‡…‹ϐ‹‡† ‹ –Š‡
‘–‹…‡ ‘ˆ ˆ—”‹•Š‹‰
”‡–—”

ʹ͹ͳ  —”‹•Š‹‰‘ˆ‹ƒ……—”ƒ–‡ ‹ˆ‘”ƒ–‹‘‹ •ǤͷͲǡͲͲͲ ƒ‹Ž—”‡ –‘ ’”‡•…”‹„‡†‹…‘‡

•–ƒ–‡‡–‘ˆϐ‹ƒ…‹ƒŽ –”ƒ•ƒ…–‹‘‘” ˆ—”‹•Šƒ—ƒŽ Ǧ–ƒš ƒ—–Š‘”‹–›
”‡’‘”–ƒ„Ž‡ƒ……‘—–Ǥ ‹ˆ‘”ƒ–‹‘ ”‡–—”
ƒ‹Ž—”‡–‘ˆ—”‹•Šƒ—ƒŽ ‹ˆ‘”ƒ–‹‘ ™‹–Š‹–Š‡’‡”‹‘†
”‡–—”™‹–Š‹–Š‡’‡”‹‘† •’‡…‹ϐ‹‹‘–‹…‡ •’‡…‹ϐ‹‡† ‹ ‘–‹…‡
—Ȁ•ʹͺͷȋͷȌ —Ȁ•ʹͺͷȋͷȌ
͸ͲͶ Lesson 10 Ȉ EP-TL

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ʹ͹ͳ  ‡…–‹‘ ͻ ’”‘˜‹†‡• –Šƒ– ˆ—† •Ǥ •ǤͷǡͲͲǡͲͲͲ
ͷǡͲͲǡͲͲͲ ƒƒ‰‡‡– ƒ…–‹˜‹–› …ƒ””‹‡†
‘—– „› ƒ ‡Ž‹‰‹„Ž‡ ‘ˆˆ•Š‘”‡‹˜‡•–‡–
ˆ—†–Š”‘—‰Šƒ ‡Ž‹‰‹„Ž‡ ˆ—† ƒƒ‰‡”
ƒ…–‹‰ ‘ „‡ŠƒŽˆ ‘ˆ •—…Š ˆ—† •ŠƒŽŽ
‘– …‘•–‹–—–‡ „—•‹‡•• …‘‡…–‹‘ ‹
†‹ƒ ȋ•—„Œ‡…– –‘ …‡”–ƒ‹ …‘†‹–‹‘•ȌǤ
Š‡ ’”‘˜‹•‹‘ ”‡“—‹”‡• –Šƒ– ‡Ž‹‰‹„Ž‡
‹˜‡•–‡– ˆ—† •ŠƒŽŽ ˆ—”‹•Š ™‹–Š‹
ͻͲ †ƒ›• ˆ”‘ –Š‡ ‡† ‘ˆ –Š‡ ϐ‹ƒ…‹ƒŽ
›‡ƒ” ƒ •–ƒ–‡‡–ǡ ‹ ”‡•’‡…– ‘ˆ ‹–•
ƒ…–‹˜‹–‹‡• ‹ ƒ ϐ‹ƒ…‹ƒŽ ›‡ƒ”ǡ  ‹ –Š‡
’”‡•…”‹„‡† ˆ‘” …‘–ƒ‹‹‰
‹ˆ‘”ƒ–‹‘ ”‡Žƒ–‹‰ –‘ ˆ—Žϐ‹Ž‡– ‘ˆ
•’‡…‹ϐ‹‡† …‘†‹–‹‘• ƒ† •—…Š ‘–Š‡”
‹ˆ‘”ƒ–‹‘‘”†‘…—‡–• ƒ•ƒ›„‡
’”‡•…”‹„‡†Ǥ ‡ƒŽ–› –‘ „‡ Ž‡˜‹‡† ‹ˆ
‹˜‡•–‡–ˆ—†ˆƒ‹Ž‡† –‘…‘’Ž›™‹–Š
–Š‡”‡“—‹”‡‡–Ǥ
ʹ͹ͳ  ƒ‹Ž—”‡ –‘ ˆ—”‹•Š ”‹‰‡ ‡‡ϐ‹– •ǤͳͲͲ’‡”†ƒ›ˆ‘” –Š‡
‡–—” ȋ  ‹• ‘– ƒ’’Ž‹…ƒ„Ž‡ ˆ”‘ †ƒ›•‘ˆ†‡ˆƒ—Ž–
–Š‡ʹͲͳͲǦͳͳ‘™ƒ”†•Ȍ
ʹ͹ͳ
ƒ‹Ž—”‡–‘ˆ—”‹•Š ‹ˆ‘”ƒ–‹‘‘” •—‡“—ƒŽ–‘ ʹΨ ”ƒ•ˆ‡””‹…‹‰
†‘…—‡–‹”‡•’‡…–‘ˆ ‹–‡”ƒ–‹‘ƒŽ ‘ˆ –Š‡ ˜ƒŽ—‡ ‘ˆ‡ƒ…Š ˆϐ‹…‡”ƒ•”‡ˆ‡””‡†
–”ƒ•ƒ…–‹‘‘” •’‡…‹ϐ‹‡††‘‡•–‹… ‹–‡”ƒ–‹‘ƒŽ –‘‹‡…–‹‘ ͻʹ
–”ƒ•ƒ…–‹‘—†‡”‡…–‹‘ͻʹȋ͵ȌǤ –”ƒ•ƒ…–‹‘‘”
•’‡…‹ϐ‹‡††‘‡•–‹…
–”ƒ•ƒ…–‹‘Ǥ
ʹ͹ͳ
 ‡…–‹‘ ʹͺͷ ’”‘˜‹†‡• ˆ‘” ”‡’‘”–‹‰ ȋƒȌƒ•—‡“—ƒŽ–‘ʹΨ
„›ƒ†‹ƒ…‘…‡”‹ˆˆ‘ŽŽ‘™‹‰–™‘
…‘†‹–‹‘• ƒ”‡ •ƒ–‹•ϐ‹‡†ǣ
ȋƒȌ Šƒ”‡• ‘” ‹–‡”‡•– ‹ ƒ ˆ‘”‡‹‰
…‘’ƒ› ‘” ‡–‹–› †‡”‹˜‡ •—„•–ƒ–‹ƒŽ
˜ƒŽ—‡ǡ †‹”‡…–Ž› ‘” ‹†‹”‡…–Ž›ǡ ˆ”‘
‘ˆ˜ƒŽ—‡‘ˆ–”ƒ•ƒ…–‹‘
‹”‡•’‡…–‘ˆ™Š‹…Š•—…Š
ˆƒ‹Ž—”‡Šƒ•–ƒ‡’Žƒ…‡ǡ
‹ˆ •—…Š –”ƒ•ƒ…–‹‘
Šƒ†‡ˆˆ‡…– ‘ˆǡ †‹”‡…–Ž›
ƒ••‡–• Ž‘…ƒ–‡† ‹ †‹ƒǢƒ† ‘” ‹†‹”‡…–Ž›ǡ
–”ƒ•ˆ‡””‹‰ ”‹‰Š– ‘ˆ
ȋ„Ȍ—…Šˆ‘”‡‹‰…‘’ƒ›‘”‡–‹–›Š‘Ž†•
ƒƒ‰‡‡– ‘”
•—…Šƒ••‡–•‹†‹ƒ–Š”‘—‰Š ‘” ‹ •—…Š
…‘–”‘Ž ‹ ”‡Žƒ–‹‘ –‘
†‹ƒ …‘…‡”Ǥ  –Š‹• …ƒ•‡ǡ–Š‡†‹ƒ
–Š‡†‹ƒ…‘…‡”Ǣ
‡–‹–› •ŠƒŽŽ ˆ—”‹•Š –Š‡ ’”‡•…”‹„‡†
‹ˆ‘”ƒ–‹‘ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ȋ„Ȍƒ•—‘ˆ•ǤͷǡͲͲͲ
†‡–‡”‹ƒ–‹‘ ‘ˆ ƒ› ‹…‘‡ ƒ……”—‹‰ ‹ƒ›‘–Š‡”…ƒ•‡Ǥ
‘” ƒ”‹•‹‰ ‹ †‹ƒ —†‡” ‡…–‹‘ ͻȋͳȌ
ȋ‹ȌǤ  …ƒ•‡ ‘ˆ ƒ› ˆƒ‹Ž—”‡ǡ –Š‡ †‹ƒ
…‘…‡”•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›’‡ƒŽ–›Ǥ
Lesson 10 ȈAssessment, Appeals & Revision ͸Ͳͷ

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ʹ͹ͳ
 ͳǤ ƒ‹Ž—”‡ –‘ ˆ—”‹•Š ”‡’‘”– —†‡” •Ǥ ͷǡͲͲͲ ’‡” †ƒ›
•‡…–‹‘ʹͺ͸ȋʹȌ —’–‘ ͵Ͳ †ƒ›• ƒ† •Ǥ
ʹǤ ƒ‹Ž—”‡ –‘ ’”‘†—…‡ –Š‡ ‹ˆ‘”ƒ–‹‘ ͳͷǡͲͲͲ’‡”†ƒ›„‡›‘†
ƒ† †‘…—‡–•  ™‹–Š‹ –Š‡ ’‡”‹‘† ͵Ͳ†ƒ›•Ǥ
ƒŽŽ‘™‡†—†‡”•‡…–‹‘ ʹ͹ͳ
ȋ͸Ȍ •Ǥ ͷǡͲͲͲ ˆ‘” ‡˜‡”›
͵Ǥ ƒ‹Ž—”‡–‘ˆ—”‹•Š”‡’‘”–‘”ˆƒ‹Ž—”‡ –‘ †ƒ› †—”‹‰ ™Š‹…Š –Š‡
’”‘†—…‡ ‹ˆ‘”ƒ–‹‘Ȁ†‘…—‡–•—†‡” ˆƒ‹Ž—”‡…‘–‹—‡•Ǥ
•‡…–‹‘ ʹͺ͸ ‡˜‡ ƒˆ–‡” •‡”˜‹‰ ‘”†‡” ͵Ǥ•ǤͷͲǡͲͲͲˆ‘”‡˜‡”›
—†‡”•‡…–‹‘ ʹ͹ͳ
ȋͳȌ‘”ʹ͹ͳ
ȋʹȌ †ƒ› ˆ‘” ™Š‹…Š •—…Š
ͶǤ ƒ‹Ž—”‡–‘‹ˆ‘”ƒ„‘—– ‹ƒ……—”ƒ…›‹ ˆƒ‹Ž—”‡ …‘–‹—‡•
”‡’‘”– ˆ—”‹•Š —†‡”•‡…–‹‘ʹͺ͸ȋʹȌ” „‡‰‹‹‰ ˆ”‘ –Š‡
ˆ—”‹•Š‹‰ ‘ˆ ‹ƒ……—”ƒ–‡ ‹ˆ‘”ƒ–‹‘ ‘” †ƒ–‡ ‘ˆ •‡”˜‹‰ •—…Š
†‘…—‡– ‹ ”‡•’‘•‡ –‘ ‘–‹…‡‹••—‡† ‘”†‡”Ǥ
—†‡”•‡…–‹‘ʹͺ͸ȋ͸ȌǤ •ǤͷǡͲͲǡͲͲͲǤ
ʹ͹ͳ ƒ‹Ž• –‘ ˆ—”‹•Š •–ƒ–‡‡– ™‹–Š‹ –Š‡ •ǤͳͲǡͲͲͲ •ǤͳǡͲͲǡͲͲͲ ••‡••‹‰
–‹‡’”‡•…”‹„‡†‹•—„Ǧ•‡…–‹‘ ˆϐ‹…‡”
ȋ͵Ȍ ‘ˆ •‡…–‹‘ ʹͲͲ ‘” ’”‘˜‹•‘ –‘
•‡…–‹‘ʹͲ͸ȋ͵Ȍ‘”ˆ—”‹•Š‡•‹…‘””‡…–
‹ˆ‘”ƒ–‹‘Ǥ
‘™‡˜‡”ǡ ‘ ’‡ƒŽ–› •ŠƒŽŽ „‡ ’ƒ›ƒ„Ž‡‹ˆ
–ƒšƒŽ‘‰™‹–Š‹–‡”‡•–Šƒ•„‡‡†‡’‘•‹–‡†
ƒ† –Š‡ •–ƒ–‡‡– Šƒ• „‡‡ ˆ—”‹•Š‡†
™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡–‹‡’”‡•…”‹„‡†Ǥ
ʹ͹ͳǦ • ’‡” •‡…–‹‘ ͳͻͷȋ͸Ȍ ‘ˆ –Š‡ …–ǡ ƒ› •ǤͳͲͲǡͲͲͲ ••‡••‹‰
’‡”•‘”‡•’‘•‹„Ž‡ˆ‘”’ƒ›‹‰–‘ƒ‘Ǧ ˆϐ‹…‡”
”‡•‹†‡– ‘” –‘ ƒ ˆ‘”‡‹‰ …‘’ƒ›ǡ ƒ›
•— ȋ™Š‡–Š‡” ‘” ‘– …Šƒ”‰‡ƒ„Ž‡ –‘
–ƒšȌǡ •ŠƒŽŽ ˆ—”‹•Š –Š‡ ‹ˆ‘”ƒ–‹‘
”‡Žƒ–‹‰–‘•—…Š’ƒ›‡–‹ ‘”ͳͷ
ƒ† ͳͷǤ ‡ƒŽ–› •ŠƒŽŽ „‡ Ž‡˜‹‡† ‹
…ƒ•‡‘ˆƒ›ˆƒ‹Ž—”‡Ǥ
ʹ͹ͳ —”‹•Š‹‰ ‹…‘””‡…– ‹ˆ‘”ƒ–‹‘ ‹ ƒ •ǤͳͲǡͲͲͲˆ‘” ‡ƒ…Š Š‡ƒ••‡••‹‰
”‡’‘”– ‘” …‡”–‹ϐ‹…ƒ–‡  —†‡” –Š‡ •—…Š ”‡’‘”– ‘” ‘ˆϐ‹…‡”‘ˆ–Š‡
’”‘˜‹•‹‘• ‘ˆ –Š‹• …– ȋ‘” ”—Ž‡• ƒ†‡ …‡”–‹ϐ‹…ƒ–‡Ǥ‘™‡˜‡”ǡ‹ˆ …‘‹••‹‘‡”
–Š‡”‡—†‡”Ȍ„›ƒŠƒ”–‡”‡† ……‘—–ƒ– –Š‡…‘…‡”‡†’‡”•‘ ȋ’’‡ƒŽ•Ȍ
‘”ƒ‡”…Šƒ–ƒ‡” ‘” ƒ ‡‰‹•–‡”‡† ’”‘˜‡•–Šƒ– –Š‡”‡™ƒ•
ƒŽ—‡”Ǥ ”‡ƒ•‘ƒ„Ž‡ …ƒ—•‡ ˆ‘”
–Š‡ ƒˆ‘”‡•ƒ‹† ˆƒ‹Ž—”‡ǡ
–Š‡ ’‡ƒŽ–› •ŠƒŽŽ
‘– „‡‹’‘•ƒ„Ž‡Ǥ
ʹ͹ʹȋͳȌ ‡ˆ—•ƒŽ ‘” ˆƒ‹Ž—”‡ „› Ž‡‰ƒŽŽ› „‹†‹‰ •Ǥ ͳͲǡͲͲͲˆ‘”‡ƒ…Š
’‡”•‘ ‹ ”‡•’‡…– ‘ˆ •—„Œ‡…–ƒ––‡”‘ˆ ˆƒ‹Ž—”‡Ȁ†‡ˆƒ—Ž–Ǥ
ƒ••‡••‡–ǡ–‘ǣ
ƒ•™‡” “—‡•–‹‘• •‹‰ •–ƒ–‡‡–
ƒ––‡† –‘ ‰‹˜‡ ‡˜‹†‡…‡ ‘” ’”‘†—…‡
„‘‘• ‘ˆ ƒ……‘—–ǡ ‡–…Ǥǡ ‹ …‘’Ž‹ƒ…‡
™‹–Š•—‘• —†‡”•‡…–‹‘ͳ͵ͳȋͳȌ
…‘’Ž› ™‹–Š ‘–‹…‡• —Ȁ•
ͳͶʹȋͳȌȀͳͶ͵ȋʹȌ ‘” ˆƒ‹Ž—”‡ –‘ …‘’Ž›
™‹–Š†‹”‡…–‹‘‹••—‡†—Ȁ•ͳͶʹȋʹȌǤ
 ͸Ͳ͸ Lesson 10 Ȉ EP-TL

Section Type of Default Quantum of Penalty Levied by

(Authority)
Minimum Penalty Maximum Penalty
ͳ 2 ͵ Ͷ 5
ʹ͹ʹȋʹȌ ƒ‹Ž—”‡ –‘ …‘’Ž› ™‹–Š ƒ ‘–‹…‡ ‹••—‡† •Ǥ ͳͲͲ ˆ‘” ‡˜‡”› †ƒ› ‘‹–‹”‡…–‘”
—†‡” ‡…–‹‘ ͻͶǡ –‘ ‰‹˜‡ ‘–‹…‡ ‘ˆ ‘ˆ†‡ˆƒ—Ž– ‘” ‘‹–
†‹•…‘–‹—ƒ…‡ ‘ˆ „—•‹‡••Ȁ ’”‘ˆ‡••‹‘ ‘‹••‹‘‡”
—†‡” ‡…–‹‘ ͳ͹͸ȋ͵ȌǢ ˆƒ‹Ž• –‘ ˆ—”‹•Š ȋŠ‹‡ˆ
”‡–—”•Ȁ•–ƒ–‡‡–••’‡…‹ϐ‹‡† ‘‹••‹‘‡”
‹ ‡…–‹‘• ͳ͵͵ǡ ʹͲ͸ǡ ʹͲ͸ǡ‘” ʹͺͷǢ ‘”
ˆƒ‹Ž• –‘ ƒŽŽ‘™ ‹•’‡…–‹‘ ‘ˆ ‘‹••‹‘‡”
‹…ƒ•‡‘ˆ
ȋ‹Ȍ ”‡‰‹•–‡” ‡–‹‘‡† ‹ ‡…–‹‘ ͳ͵Ͷǡ
†‡ˆƒ—Ž–—†‡”
‘” ȋ‹‹Ȍ ‡–”› ‹ •—…Š ”‡‰‹•–‡”ǡ ‘” ȋ‹‹‹Ȍ
‡…–‹‘ͳͻ͹Ȍ
ƒŽŽ‘™ …‘’‹‡• –Š‡”‡‘ˆ –‘ „‡ –ƒ‡ǡ ˆƒ‹Ž•
–‘ ˆ—”‹•Š ”‡–—” ‘ˆ ‹…‘‡ —†‡”
‡…–‹‘ ͳ͵ͻȋͶȌ ‘”ǡ ˆƒ‹Ž• –‘ †‡Ž‹˜‡”
†‡…Žƒ”ƒ–‹‘ —†‡” ‡…–‹‘ͳͻ͹Ǣˆƒ‹Ž•–‘
ˆ—”‹•Š …‡”–‹ϐ‹ —†‡” ‡…–‹‘ ʹͲ͵ ‘”
•‡…–‹‘ ʹͲ͸ǡ ˆƒ‹Ž• –‘ †‡†—…– ƒ† ’ƒ›
–ƒš —†‡” ‡…–‹‘ ʹʹ͸Ǣ ˆƒ‹Ž• –‘ †‡†—…–
‘” ’ƒ› –ƒš —Ȁ• ͳͻʹȋʹȌǡ ˆƒ‹Ž•–‘†‡Ž‹˜‡”ƒ
…‘’›‘ˆ†‡…Žƒ”ƒ–‹‘ —Ȁ• ʹͲ͸ȋͳȌǢ ˆƒ‹Ž•
–‘ †‡Ž‹˜‡” –Š‡ …‘’› ‘ˆ •–ƒ–‡‡– ™‹–Š‹
–Š‡ –‹‡ •’‡…‹ϐ‹‡†  —Ȁ• ʹͲͲȋ͵Ȍ ‘” –Š‡
’”‘˜‹•‘ –‘ ʹͲ͸ȋ͵ȌǢ ˆƒ‹Ž• –‘ †‡Ž‹˜‡”
™‹–Š‹ –Š‡–‹‡•’‡…‹ϐ‹‡† —Ȁ•ʹͲ͸ȋͳȌǤ
‘™‡˜‡”ǡ ‘ ’‡ƒŽ–› •ŠƒŽŽ „‡ ’ƒ›ƒ„Ž‡
™Š‡”‡ •–ƒ–‡‡– ”‡“—‹”‡† —Ȁ• ʹͲͲȋ͵Ȍ
‘” ’”‘˜‹•‘ –‘ •‡…–‹‘ ʹͲ͸ȋ͵Ȍ ‘ ‘”
ƒˆ–‡”ͳ•– —Ž›ʹͲͳʹǤ
ʹ͹ʹ ƒ‹Ž—”‡ ‹…‘’Ž‹ƒ…‡™‹–Š ‡…–‹‘ › ƒ‘—– •—„Œ‡…– •ǤͳǡͲͲͲ ‘‹–‘‹•Ǧ
ͳ͵͵ –‘ ƒ ƒš‹— ‘ˆ •‹‘‡”Ȁ••––
•ǤͳǡͲͲͲ ‹”‡…–‘”Ȁ
••‡••‹‰
ˆϐ‹…‡”
ʹ͹ʹ ƒ‹Ž—”‡–‘…‘’Ž›™‹–Š’”‘˜‹•‹‘• •Ǥ ͳͲǡͲͲͲˆ‘”‡ƒ…Š Ȅ Ȅ
”‡Žƒ–‹‰–‘‘”ƒ†Šƒ” ƒ• ”‡ˆ‡””‡† †‡ˆƒ—Ž–
–‘ ‹ •‡…–‹‘ ͳ͵ͻȀͳ͵ͻȋͷȌȋ…ȌȀȋͷȌȀ
ȋͷȌ
ʹ͹ʹ ƒ‹Ž—”‡ ‹…‘’Ž‹ƒ…‡™‹–Š ‡…–‹‘ •Ǥ ͳͲǡͲͲͲˆ‘”‡ƒ…Š Ȅ ••‡••‹‰
ʹ͵Ͳ ˆƒ‹Ž—”‡Ȁ†‡ˆƒ—Ž– ˆϐ‹…‡”
ʹ͹ʹ ƒ‹Ž—”‡–‘…‘’Ž›™‹–Š‡…–‹‘ •ǤͳͲǡͲͲͲ Ȅ Ȅ
ʹͲ͸ȋȌ
Note ǣǣ‘’‡ƒŽ–›‹•‹’‘•ƒ„Ž‡ˆ‘”ƒ›ˆƒ‹Ž—”‡—†‡”•‡…–‹‘•ʹ͹ͳȋͳȌȋ„Ȍǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡ
ʹ͹ͳǡʹ͹ͳǡʹ͹ͳǡʹ͹ͳ ǡʹ͹ͳ ǡʹ͹ͳ ǡʹ͹ͳ ǡʹ͹ͳ
ǡʹ͹ͳ
ǡʹ͹ͳ
ǡʹ͹ͳǡʹ͹ͳǦǡʹ͹ʹȋͳȌȋ…Ȍ‘”ȋ†Ȍǡʹ͹ʹȋʹȌǡ
ʹ͹ʹȋͳȌǡʹ͹ʹǡʹ͹ʹȋͳȌǡʹ͹ʹȋͳȌǡʹ͹ʹȋͳȌǡʹ͹͵ȋͳȌȋ„Ȍǡʹ͹͵ȋʹȌȋ„Ȍƒ†ʹ͹͵ȋʹȌȋ…Ȍ‹ˆ–Š‡’‡”•‘‘”ƒ••‡••‡‡
’”‘˜‡•–Šƒ––Š‡”‡™ƒ•”‡ƒ•‘ƒ„Ž‡…ƒ—•‡ˆ‘”•—…Šˆƒ‹Ž—”‡ȋ•‡…–‹‘ʹ͹͵ȌǤ
‡…–‹‘ ʹ͹͵ ’”‘˜‹†‡• –Šƒ– ƒ ’‡”•‘ ƒ› ƒ‡ ƒ’’Ž‹…ƒ–‹‘ –‘ –Š‡ ”‹…‹’ƒŽ ‘‹••‹‘‡”Ȁ‘‹••‹‘‡” ˆ‘”
‰”ƒ–‹‰ ‹—‹–› ˆ”‘ ’‡ƒŽ–›ǡ ‹ˆ ȋƒȌ Š‡ Šƒ• ƒ†‡ ƒ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” •‡––Ž‡‡– —†‡” •‡…–‹‘ ʹͶͷ ƒ† –Š‡
 Lesson 10 ȈAssessment, Appeals & Revision ͸Ͳ͹

’”‘…‡‡†‹‰• ˆ‘” •‡––Ž‡‡– Šƒ˜‡ ƒ„ƒ–‡†Ǣ ƒ† ȋ„Ȍ ’‡ƒŽ–› ’”‘…‡‡†‹‰ Šƒ˜‡ „‡‡ ‹‹–‹ƒ–‡† —†‡” –Š‹• …–Ǥ Š‡
ƒ’’Ž‹…ƒ–‹‘•ŠƒŽŽ‘–„‡ƒ†‡ƒˆ–‡”–Š‡‹’‘•‹–‹‘‘ˆ’‡ƒŽ–›ƒˆ–‡”ƒ„ƒ–‡‡–Ǥ
Š‡ ‘”†‡” —†‡” •—„Ǧ•‡…–‹‘ ȋ͵Ȍǡ ‡‹–Š‡” ƒ……‡’–‹‰ ‘” ”‡Œ‡…–‹‰ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ‹ ˆ—ŽŽ ‘” ‹ ’ƒ”–ǡ •ŠƒŽŽ „‡ ’ƒ••‡†
™‹–Š‹ƒ’‡”‹‘†‘ˆ–™‡Ž˜‡‘–Š•ˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡ƒ’’Ž‹…ƒ–‹‘—†‡”–Š‡•ƒ‹†•—„Ǧ•‡…–‹‘‹•
”‡…‡‹˜‡†„›–Š‡”‹…‹’ƒŽ‘‹••‹‘‡”‘”–Š‡‘‹••‹‘‡”ǣ
”‘˜‹†‡†–Šƒ–‘‘”†‡””‡Œ‡…–‹‰–Š‡ƒ’’Ž‹…ƒ–‹‘ǡ‡‹–Š‡”‹ˆ—ŽŽ‘”‹’ƒ”–ǡ•ŠƒŽŽ„‡’ƒ••‡†—Ž‡••–Š‡ƒ••‡••‡‡Šƒ•
„‡‡‰‹˜‡ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡ƒ›ƒ’’Ž‹…ƒ–‹‘‹•’‡†‹‰ƒ•‘–Š‡ͳ•–†ƒ›‘ˆ —‡ǡʹͲͳ͸ǡ–Š‡‘”†‡”•ŠƒŽŽ„‡’ƒ••‡†‘
‘”„‡ˆ‘”‡–Š‡͵ͳ•–†ƒ›‘ˆƒ›ǡʹͲͳ͹Ǥ

Provision for E-Penalty [Section 274(2A)]

Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ› ‘–‹ˆ› ƒ ‡Ǧ•…Š‡‡ ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ‹’‘•‹‰ ’‡ƒŽ–› •‘ ƒ• –‘ ‹’ƒ”– ‰”‡ƒ–‡”
‡ˆϐ‹…‹‡…›ǡ–”ƒ•’ƒ”‡…›ƒ†ƒ……‘—–ƒ„‹Ž‹–›„›ǡȄ
ȋƒȌ ‡Ž‹‹ƒ–‹‰–Š‡‹–‡”ˆƒ…‡„‡–™‡‡–Š‡••‡••‹‰ˆϐ‹…‡”ƒ†–Š‡ƒ••‡••‡‡‹–Š‡…‘—”•‡‘ˆ’”‘…‡‡†‹‰•–‘–Š‡
‡š–‡––‡…Š‘Ž‘‰‹…ƒŽŽ›ˆ‡ƒ•‹„Ž‡Ǣ
ȋ„Ȍ ‘’–‹‹•‹‰—–‹Ž‹•ƒ–‹‘‘ˆ–Š‡”‡•‘—”…‡•–Š”‘—‰Š‡…‘‘‹‡•‘ˆ•…ƒŽ‡ƒ†ˆ—…–‹‘ƒŽ•’‡…‹ƒŽ‹•ƒ–‹‘Ǣ
ȋ…Ȍ ‹–”‘†—…‹‰ƒ‡…Šƒ‹•ˆ‘”‹’‘•‹‰‘ˆ’‡ƒŽ–›™‹–Š†›ƒ‹…Œ—”‹•†‹…–‹‘‹™Š‹…Š’‡ƒŽ–›•ŠƒŽŽ„‡‹’‘•‡†
„›‘‡‘”‘”‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–‹‡•Ǥ
–ƒŽ•‘‡’‘™‡”–Š‡‡–”ƒŽ
‘˜‡”‡–ǡˆ‘”–Š‡’—”’‘•‡‘ˆ‰‹˜‹‰‡ˆˆ‡…––‘–Š‡•…Š‡‡ƒ†‡—†‡”–Š‡•—„Ǧ•‡…–‹‘ǡ
ˆ‘”‹••—‹‰‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ–‘†‹”‡…––Šƒ–ƒ›‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–”‡Žƒ–‹‰–‘Œ—”‹•†‹…–‹‘
ƒ†’”‘…‡†—”‡‘ˆ‹’‘•‹‰’‡ƒŽ–›•ŠƒŽŽ‘–ƒ’’Ž›‘”•ŠƒŽŽƒ’’Ž›™‹–Š•—…Š‡š…‡’–‹‘•ǡ‘†‹ϐ‹…ƒ–‹‘•ƒ†ƒ†ƒ’–ƒ–‹‘•
ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘Ǥ—…Š†‹”‡…–‹‘•ƒ”‡–‘„‡‹••—‡†‘‘”„‡ˆ‘”‡͵ͳ•–ƒ”…ŠǡʹͲʹʹǤ–‹•ˆ—”–Š‡”
’”‘˜‹†‡†–Šƒ–‡˜‡”›‘–‹ϐ‹…ƒ–‹‘‹••—‡†•ŠƒŽŽ„‡”‡“—‹”‡†–‘„‡Žƒ‹†„‡ˆ‘”‡‡ƒ…Š‘—•‡‘ˆƒ”Ž‹ƒ‡–Ǥ
This amendment will take effect from 1st April, 2020.
Rationalisation of Penalty Provisions
Š‡‡š‹•–‹‰’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘Ž‡˜›‘ˆ’‡ƒŽ–›—Ȁ•ʹ͹ͳȋͳȌȋ…Ȍ†—‡–‘…‘…‡ƒŽ‡–‘ˆ‹…‘‡‘”ˆ—”‹•Š‹‰‘ˆ
‹ƒ……—”ƒ–‡’ƒ”–‹…—Žƒ”•‘ˆ‹…‘‡„›–Š‡–ƒš’ƒ›‡”‹•–‘„‡”‡’Žƒ…‡†„›ƒ‡™•‡…–‹‘ʹ͹Ͳ…ƒ–‡‰‘”‹œ‹‰–Š‡†‡ˆƒ—Ž–•
‹–‘–™‘…ƒ–‡‰‘”‹‡•˜‹œǤǡ—†‡”Ǧ”‡’‘”–‹‰‘ˆ‹…‘‡ƒ†‹•”‡’‘”–‹‰‘ˆ‹…‘‡Ǥ

Under-reporting of Income Mis-reporting of Income

Ȉ –Š‡ ‹…‘‡ ƒ••‡••‡† ‹• ‰”‡ƒ–‡” –Šƒ –Š‡ ‹…‘‡ ‘Ǧ”‡…‘”†‹‰ ‘ˆ ‹˜‡•–‡–• ‹ „‘‘• ‘ˆ
†‡–‡”‹‡†‹–Š‡”‡–—”’”‘…‡••‡†—†‡”…Žƒ—•‡ȋƒȌ ‘ˆ ƒ……‘—–Ǥ
•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͶ͵Ǣ
Ȉ –Š‡ ‹…‘‡ ƒ••‡••‡† ‹• ‰”‡ƒ–‡” –Šƒ –Š‡ ƒš‹— …Žƒ‹‹‰ ‘ˆ ‡š’‡†‹–—”‡ ‘– •—„•–ƒ–‹ƒ–‡† „›
ƒ‘—– ‘– …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒšǡ ™Š‡”‡ ‘ ”‡–—” ‘ˆ ‡˜‹†‡…‡Ǥ
‹…‘‡Šƒ•„‡‡ˆ—”‹•Š‡†Ǣ
ͻ the income reassessed is greater than the income assessed recording of false entry in books of account.
or reassessed immediately before such re- assessment;
–Š‡ ƒ‘—– ‘ˆ †‡‡‡† –‘–ƒŽ ‹…‘‡ ƒ••‡••‡† ‘””‡ƒ••‡••‡† ‹•”‡’”‡•‡–ƒ–‹‘‘”•—’’”‡••‹‘‘ˆˆƒ…–•Ǥ
ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘
ͳͳͷ ‘”ͳͳͷ ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹•‰”‡ƒ–‡”–Šƒ–Š‡ †‡‡‡†
–‘–ƒŽ ‹…‘‡ †‡–‡”‹‡† ‹ –Š‡ ”‡–—” ’”‘…‡••‡† —†‡”
…Žƒ—•‡ȋƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ •‡…–‹‘ͳͶ͵Ǣ
–Š‡ ƒ‘—– ‘ˆ †‡‡‡†  –‘–ƒŽ  ‹…‘‡  ƒ••‡••‡† ƒ• ’‡” –Š‡ ˆƒ‹Ž—”‡  –‘  ”‡…‘”†  ƒ›  ”‡…‡‹’–  ‹  „‘‘•  ‘ˆ
’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ ͳͳͷ  ‘” ͳͳͷ  ‹• ‰”‡ƒ–‡” –Šƒ –Š‡ ƒ……‘—– Šƒ˜‹‰ƒ„‡ƒ”‹‰‘–‘–ƒŽ‹…‘‡Ǥ
ƒš‹— ƒ‘—– ‘– …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒšǡ ™Š‡”‡ ‘ ”‡–—” ‘ˆ
‹…‘‡Šƒ•„‡‡ϐ‹Ž‡†Ǣ
 ͸Ͳͺ Lesson 10 Ȉ EP-TL

–Š‡‹…‘‡ƒ••‡••‡†‘””‡ƒ••‡••‡†Šƒ•–Š‡‡ˆˆ‡…–‘ˆ”‡†—…‹‰–Š‡ ˆƒ‹Ž—”‡–‘”‡’‘”–ƒ›‹–‡”ƒ–‹‘ƒŽ–”ƒ•ƒ…–‹‘
Ž‘••‘”…‘˜‡”–‹‰•—…ŠŽ‘••‹–‘‹…‘‡Ǥ ‘” †‡‡‡† ‹–‡”ƒ–‹‘ƒŽ –”ƒ•ƒ…–‹‘ —†‡”
Šƒ’–‡”Ǥ
‹ˆ –‘–ƒŽ ‹…‘‡ ”‡ƒ••‡••‡† ƒ• ’‡” •‡…–‹‘ ͳͳͷ  ‘” •‡…–‹‘
ͳͳͷ  ȋ ‘” Ȍ ‹• ‰”‡ƒ–‡” –Šƒ †‡‡‡† –‘–ƒŽ ‹…‘‡
ƒ••‡••‡†Ȁ ”‡ƒ••‡••‡† —†‡”  ‘” –Š‡  ‹‡†‹ƒ–‡Ž›
„‡ˆ‘”‡•—…Š”‡ƒ••‡••‡–Ǥ
Š‡”ƒ–‡‘ˆ’‡ƒŽ–›•ŠƒŽŽ„‡ϐ‹ˆ–›’‡”…‡–‘ˆ–Š‡–ƒš’ƒ›ƒ„Ž‡‘—†‡”Ǧ”‡’‘”–‡†‹…‘‡Ǥ‘™‡˜‡”‹ƒ…ƒ•‡™Š‡”‡
—†‡””‡’‘”–‹‰‘ˆ‹…‘‡”‡•—Ž–•ˆ”‘‹•”‡’‘”–‹‰‘ˆ‹…‘‡„›–Š‡ƒ••‡••‡‡ǡ–Š‡’‡”•‘•ŠƒŽŽ„‡Ž‹ƒ„Ž‡ˆ‘”’‡ƒŽ–›
ƒ––Š‡”ƒ–‡‘ˆ–™‘Š—†”‡†’‡”…‡–‘ˆ–Š‡–ƒš’ƒ›ƒ„Ž‡‘•—…Š‹•”‡’‘”–‡†‹…‘‡Ǥ
Š‡•‡ƒ‡†‡–•‡ˆˆ‡…–‹˜‡ˆ”‘ͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲͳ͹ƒ†ƒ……‘”†‹‰Ž›ƒ’’Ž›‹”‡Žƒ–‹‘–‘ƒ••‡••‡–›‡ƒ”ʹͲͳ͹Ǧ
ʹͲͳͺƒ†•—„•‡“—‡–›‡ƒ”•Ǥ‘•‡“—‡–‹ƒŽƒ‡†‡–•Šƒ†ƒŽ•‘„‡‡ƒ†‡‹•‡…–‹‘•ͳͳͻǡʹͷ͵ǡʹ͹ͳǡʹ͹ͳǡ
ʹ͹ͳǡʹ͹͵ƒ†ʹ͹ͻ–‘’”‘˜‹†‡”‡ˆ‡”‡…‡–‘‡™Ž›‹•‡”–‡†•‡…–‹‘ʹ͹ͲǤ

OFFENCES AND PROCECUTION

Rigorous Imprisonment

Section Nature of Default Minimum Period Maximum Period

ʹ͹ͷ ‡ƒŽ‹‰ ™‹–Š •‡‹œ‡† ƒ••‡–• ‹ › ’‡”‹‘† —’ –‘ ʹ ›‡ƒ”• ʹ›‡ƒ”•ƒ†ϐ‹‡
…‘–”ƒ˜‡–‹‘ ‘ˆ –Š‡ ‘”†‡” ƒ†‡ „› ƒ†ϐ‹‡
–Š‡‘ˆϐ‹…‡”…‘†—…–‹‰•‡ƒ”…Š
ʹ͹ͷ ƒ‹Ž—”‡–‘…‘’Ž›™‹–Š–Š‡’”‘˜‹•‹‘ › ’‡”‹‘† —’ –‘ ʹ ›‡ƒ”• ʹ›‡ƒ”•ƒ†ϐ‹‡
‘ˆ•‡…–‹‘ͳ͵ʹȋŽȌȋ‹‹„Ȍ ƒ†ϐ‹‡
ʹ͹͸ ‡‘˜ƒŽǡ …‘…‡ƒŽ‡–ǡ –”ƒ•ˆ‡” ‘” › ’‡”‹‘† —’ –‘ ʹ ›‡ƒ”• ʹ›‡ƒ”•ƒ†ϐ‹‡
†‡Ž‹˜‡”›‘ˆ’”‘’‡”–›–‘–ƒš”‡…‘˜‡”› ƒ†ϐ‹‡
ʹ͹͸ ƒ‹Ž—”‡–‘…‘’Ž›™‹–Š–Š‡’”‘˜‹•‹‘• › ’‡”‹‘† —’ –‘ ʹ ›‡ƒ”• ʹ›‡ƒ”•
‘ˆ•‡…–‹‘ͳ͹ͺȋͳȌƬȋ͵Ȍ„›Ž‹“—‹†ƒ–‘” „—–‘–Ž‡••–Šƒ͸‘–Š•
‘ˆƒ…‘’ƒ› ‹ ƒ„•‡…‡ ‘ˆ •’‡…‹ƒŽ ƒ†
ƒ†‡“—ƒ–‡”‡ƒ•‘•
ʹ͹͸ ƒ‹Ž—”‡–‘…‘’Ž›™‹–Š’”‘˜‹•‹‘•‘ˆ ͸‘–Š•ƒ†ϐ‹‡ ʹ›‡ƒ”•ƒ†ϐ‹‡
•‡…–‹‘•ʹ͸ͻǡʹ͸ͻƒ†ʹ͸ͻ
ʹ͹͸ ƒ‹Ž—”‡ –‘ ’ƒ› –ƒš –‘ –Š‡ ͵‘–Š•ƒ†ϐ‹‡ ͹›‡ƒ”•ƒ†ϐ‹‡

‘˜‡”‡–ǯ• –”‡ƒ•—”› ‘” ˆƒ‹Ž—”‡ –‘
’ƒ›–‘–Š‡
‘˜‡”‡––ƒš’ƒ›ƒ„Ž‡ „›
Š‹ ƒ• ”‡“—‹”‡† „› •‡…–‹‘ ͳͳͷǦ ͲȋʹȌ
‘” •‡…‘† ’”‘˜‹•‘ –‘ •‡…–‹‘ͳͻͶ
ʹ͹͸ ƒ‹Ž—”‡ –‘ ’ƒ› –‘ –Š‡
‘˜‡”‡–ǡ ͵‘–Š•ƒ†ϐ‹‡ ͹›‡ƒ”•ƒ†ϐ‹‡
–ƒš…‘ŽŽ‡…–‡†—Ȁ•ʹͲ͸

ʹ͹͸ȋͳȌ ‹ŽŽˆ—Ž ƒ––‡’– –‘ ‡˜ƒ†‡ –ƒš ’‡ƒŽ–› ˆ  –ƒš  ‡˜ƒ†‡†  ‡š…‡‡†• ˆ –ƒš ‡˜ƒ†‡† ‡š…‡‡†• •Ǥ
‘” ‹–‡”‡•– ‹’‘•ƒ„Ž‡ ‘” under •Ǥ ʹͷǡ ͲͲǡͲͲͲǡ–Š‡ ˆ‘” ͸ ʹͷǡͲͲǡͲͲͲǡ ͹ ›‡ƒ”• Ƭ ϐ‹‡Ǣ
reports his income —†‡”–Š‡…–Ǥ ‘–Š•Ƭ ϐ‹‡Ǣ ‘–Š‡”™‹•‡ ‘–Š‡”™‹•‡ʹ›‡ƒ”•ƒ†ϐ‹‡Ǥ
͵‘–Š•ƒ†ϐ‹‡Ǥ
ʹ͹͸ȋʹȌ ‹ŽŽˆ—Žƒ––‡’––‘‡˜ƒ†‡–Š‡’ƒ›‡– ͵‘–Š•ƒ†ϐ‹‡ ʹ›‡ƒ”•ƒ†ϐ‹‡
‘ˆƒ›–ƒšǡ’‡ƒŽ–›‘”‹–‡”‡•–
 Lesson 10 ȈAssessment, Appeals & Revision ͸Ͳͻ

ʹ͹͸ ‹ŽŽˆ—Žˆƒ‹Ž—”‡–‘ϐ‹Ž‡”‡–—”‘ˆ‹…‘‡ ˆ–ƒš ‡˜ƒ†‡† ‡š…‡‡†••Ǥ ˆ –ƒš ‡˜ƒ†‡† ‡š…‡‡†• •Ǥ

‹–‹‡—Ȁ•ͳ͵ͻȋͳȌǡ‘”‹‡•’‘•‡–‘ ʹͷǡͲͲǡͲͲͲ Ƭ ͸ ‘–Š• ʹͷǡͲͲǡͲͲͲǡ ͹ ›‡ƒ”• Ƭ ϐ‹‡Ǣ
‘–‹…‡ —Ȁ•ǤͳͶʹȋͳȌ ‘” •‡…–‹‘ ƒ† ϐ‹‡ƒ›‘–Š‡”…ƒ•‡ǡ ‘–Š‡”™‹•‡ʹ›‡ƒ”•ƒ†ϐ‹‡
ͳͶͺȋ‘Ǧ ‘‰‹œƒ„Ž‡ ƒ• ’‡” ‡…–‹‘ ͵‘–Š•ƒ†ϐ‹‡Ǥ
ʹ͹ͻȌ ‘–‡ǣ‘’”‘•‡…—–‹‘‹ˆǣ
(‹Ȍ –Š‡ ”‡–—” ‹• ϐ‹Ž‡†
„‡ˆ‘”‡ –Š‡ ‡š’‹”‡ ‘ˆ –Š‡
ƒ••‡••‡–›‡ƒ”Ǣ‘”
ȋ‹‹Ȍ –Š‡ –ƒš ’ƒ›ƒ„Ž‡ ‘
”‡‰—Žƒ” ƒ••‡••‡–ǡ ƒ•
”‡†—…‡† „›  ƒ†
ƒ†˜ƒ…‡–ƒš†‘‡•‘–
‡š…‡‡†•ǤͳͲǡͲͲͲ
ʹ͹͸ ‹Žˆ—Žˆƒ‹Ž—”‡–‘ˆ—”‹•Š‹†—‡–‹‡• ͵‘–Š•ƒ†ϐ‹‡ ͵‘–Š•ƒ†ϐ‹‡
–Š‡ ”‡–—” ‘ˆ –‘–ƒŽ ‹…‘‡ ™Š‹…Š ‹•
”‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†—Ȁ•ǤͳͷͺǤ
ʹ͹͸ ‹Žˆ—Ž ˆƒ‹Ž—”‡ –‘ ’”‘†—…‡„‘‘•‘ˆ › ’‡”‹‘† —’–‘ ͳ ›‡ƒ” ͳ›‡ƒ”ƒ†ϐ‹‡
ƒ……‘—– ƒ† †‘…—‡–• —Ȁ•ǤͳͶʹȋͳȌ ƒ†ϐ‹‡
‘” ™‹Žˆ—Ž ˆƒ‹Ž—”‡ –‘ …‘’Ž› ™‹–Š ƒ
†‹”‡…–‹‘–‘‰‡––Š‡ƒ……‘—–• ƒ—†‹–‡†
—Ȁ•ǤͳͶʹȋʹȌ
ʹ͹͹ ƒ‹‰ƒˆƒŽ•‡•–ƒ–‡‡–‹ ˆ  –ƒš  ‡˜ƒ†‡†  ‡š…‡‡†• ˆ –ƒš ‡˜ƒ†‡† ‡š…‡‡†• •Ǥ
˜‡”‹ϐ‹…ƒ–‹‘ ‘” †‡Ž‹˜‡”‹‰ ƒ ˆƒŽ•‡ •ǤʹͷǡͲͲǡͲͲͲǢ͸‘–Š•Ƭ ʹͷǡͲͲǡͲͲͲǡ ͹ ›‡ƒ”• Ƭ ϐ‹‡Ǣ
ƒ……‘—–‘”•–ƒ–‡‡–ȋ‘Ǧ ϐ‹‡Ǣ ‘–Š‡”™‹•‡ ͵ ‘–Š• ‘–Š‡”™‹•‡ʹ›‡ƒ”•ƒ†ϐ‹‡Ǥ
…‘‰‹œƒ„Ž‡ƒ•’‡”‡…Ǥʹ͹ͻȌ ƒ†ϐ‹‡Ǥ
ʹ͹ͺ „‡–‡––‘ƒ‡ƒˆƒŽ•‡•–ƒ–‡‡– ˆ –ƒš ‡˜ƒ†‡† ‡š…‡‡†••Ǥ ˆ –ƒš ‡˜ƒ†‡† ‡š…‡‡†• •Ǥ
‘” †‡…Žƒ”ƒ–‹‘Ǥ ȋ‘Ǧ…‘‰‹œƒ„Ž‡ ƒ• ͳǡͲͲǡͲͲͲǢ͸‘–Š•Ǣ ʹͷǡͲͲǡͲͲͲǡ ͹ ›‡ƒ”•Ǣ ‘–Š‡”™‹•‡
’‡”ǡ‡…Ǥʹ͹ͻȌ ‘–Š‡”™‹•‡ ͵ ‘–Š• ƒ† ʹ ›‡ƒ”•ƒ†ϐ‹‡
ϐ‹‡Ǥ
ʹ͹ͺ —‹•Š‡–ˆ‘”•‡…‘†ƒ† ͸‘–Š•ˆ‘”‡˜‡”›‘ˆˆ‡…‡ ͹›‡ƒ”ˆ‘”‡˜‡”›‘ˆˆ‡…‡ƒ†
•—„•‡“—‡–‘ˆˆ‡…‡•—Ȁ•ʹ͹͸ǡ ƒ†ϐ‹‡ ϐ‹‡
ʹ͹͸ȋͳȌǡʹ͹͸ǡʹ͹͹‘”ʹ͹ͺ
ʹͺͲȋͳȌ ‹•…Ž‘•—”‡ ‘ˆ ’ƒ”–‹…—Žƒ”• „› ’—„Ž‹… ’–‘͸‘–Š•ȋ•‹’Ž‡Ȁ ͸‘–Š•ƒ†ϐ‹‡
•‡”˜ƒ–• ‹ …‘–”ƒ˜‡–‹‘ ‘ˆ •‡…–‹‘
ͳ͵ͺȋʹȌȏ”‘•‡…—–‹‘–‘„‡‹•–‹–—–‡† ”‹‰‘”‘—•Ȍƒ†ϐ‹‡
™‹–Š ’”‡˜‹‘—• •ƒ…–‹‘ ‘ˆ ‡–”ƒŽ

‘˜‡”‡–—†‡”•‡…–‹‘ʹͺͲȋʹȌȐ

No punishment if proved that there was reasonable cause for failure [Section 278AA]
ˆ –Š‡”‡ ‹•ƒ ”‡ƒ•‘ƒ„Ž‡ …ƒ—•‡ǡ ‹– …ƒ „‡ ‘ˆˆ‡”‡† ƒ• ƒ †‡ˆ‡•‡ ƒ‰ƒ‹•– ’‡ƒŽ–›ǡ ’”‘•‡…—–‹‘ǡ‡–…Ǥ › ˆƒ‹Ž—”‡ —†‡”
•‡…–‹‘ʹ͹͸ǡʹ͹͸‘”ʹ͹͸‹•‘–’—‹•Šƒ„Ž‡‹ˆŠ‡’”‘˜‡•–Šƒ––Š‡”‡™ƒ•”‡ƒ•‘ƒ„Ž‡…ƒ—•‡ˆ‘”•—…Šˆƒ‹Ž—”‡Ǥ
‡ƒ•‘ƒ„Ž‡…ƒ—•‡…ƒ„‡”‡ƒ•‘ƒ„Ž›•ƒ‹†–‘„‡ƒ…ƒ—•‡™Š‹…Š’”‡˜‡–•ƒƒ‘ˆƒ˜‡”ƒ‰‡‹–‡ŽŽ‹‰‡…‡ƒ†‘”†‹ƒ”›
’”—†‡…‡ǡƒ…–‹‰—†‡”‘”ƒŽ…‹”…—•–ƒ…‡•ǡ™‹–Š‘—–‡‰Ž‹‰‡…‡‘”‹ƒ…–‹‘‘”™ƒ–‘ˆ„‘ƒϐ‹†‡•Ǥ
Ǯ‡ƒ•‘ƒ„Ž‡…ƒ—•‡ǯƒ•ƒ’’Ž‹‡†–‘Š—ƒƒ…–‹‘‹•–Šƒ–™Š‹…Š™‘—Ž†…‘•–”ƒ‹’‡‘’Ž‡‘ˆƒ˜‡”ƒ‰‡‹–‡ŽŽ‹‰‡…‡ƒ†
‘”†‹ƒ”› ’”—†‡…‡Ǥ – ‡ƒ• ƒ Š‘‡•– „‡Ž‹‡ˆ ˆ‘—†‡† —’‘ ”‡ƒ•‘ƒ„Ž‡ ‰”‘—†•ǡ ‘ˆ –Š‡ ‡š‹•–‡…‡ ‘ˆ ƒ •–ƒ–‡ ‘ˆ
…‹”…—•–ƒ…‡•ǡ™Š‹…Šǡƒ••—‹‰–Š‡–‘„‡–”—‡ǡ™‘—Ž†”‡ƒ•‘ƒ„Ž›Ž‡ƒ†ƒ›‘”†‹ƒ”›’”—†‡–ƒ†…ƒ—–‹‘—•ƒǡ
’Žƒ…‡†‹–Š‡’‘•‹–‹‘‘ˆ–Š‡’‡”•‘…‘…‡”‡†ǡ–‘…‘‡–‘–Š‡…‘…Ž—•‹‘–Šƒ––Š‡•ƒ‡™ƒ•–Š‡”‹‰Š––Š‹‰–‘†‘Ǥ
 ͸ͳͲ Lesson 10 Ȉ EP-TL

Immunity from Penalty and Prosecution [Section 270AA]

••‡••‡‡ƒ›ƒ‡ƒƒ’’Ž‹…ƒ–‹‘–‘–Š‡••‡••‹‰ˆϐ‹…‡”ˆ‘”‰”ƒ–‘ˆ‹—‹–›ˆ”‘‹’‘•‹–‹‘‘ˆ’‡ƒŽ–›—Ȁ•
ʹ͹Ͳƒ†‹‹–‹ƒ–‹‘‘ˆ’”‘…‡‡†‹‰•—Ȁ•ʹ͹͸‹ˆǣǦ
Ȉ ƒšƒ†‹–‡”‡•–’ƒ›ƒ„Ž‡ƒ•’‡”ƒ••‡••‡–‘””‡ƒ••‡••‡–‘”†‡”’ƒ‹†™‹–Š‹–Š‡’‡”‹‘†•’‡…‹ϐ‹‡†‹•—…Š
‘–‹…‡‘ˆ†‡ƒ†ƒ†‘ƒ’’‡ƒŽ’”‡ˆ‡””‡†ƒ‰ƒ‹•–ƒ••‡••‡–‘””‡ƒ••‡••‡–‘”†‡”Ǥ
Ȉ ’’Ž‹…ƒ–‹‘•ŠƒŽŽ„‡ƒ†‡™‹–Š‹‘‡‘–Šˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡‘”†‡”‹•”‡…‡‹˜‡†‹–Š‡
ˆ‘”ƒ†ƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Ȉ ”†‡”—Ȁ•ʹ͹Ͳ•ŠƒŽŽ„‡’ƒ••‡†„›ƒˆ–‡”‡š’‹”›‘ˆ–‹‡ƒŽŽ‘™‡†ˆ‘”ϐ‹Ž‹‰‘ˆƒ’’‡ƒŽ„‡ˆ‘”‡ȋȌǤ
Ȉ ‘‹—‹–›‹ˆ’‡ƒŽ–›’”‘…‡‡†‹‰•‹•‹‹–‹ƒ–‡†ˆ‘”‹•”‡’‘”–‹‰‘ˆ‹…‘‡Ǥ
Ȉ ”†‡”ƒ……‡’–‹‰‘””‡Œ‡…–‹‰ƒ’’Ž‹…ƒ–‹‘–‘„‡ƒ†‡™‹–Š‹ƒ’‡”‹‘†‘ˆ‘‡‘–Šˆ”‘–Š‡‡†‘ˆ–Š‡‘–Š
‹™Š‹…Š•—…Šƒ’’Ž‹…ƒ–‹‘‹•”‡…‡‹˜‡†Ǥ…ƒ•‡‘ˆ”‡Œ‡…–‹‘ǡƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†–‘ƒ••‡••‡‡Ǥ”†‡”‘ˆ
•ŠƒŽŽ„‡ϐ‹ƒŽǤ
Ȉ ‘ƒ’’‡ƒŽ•ŠƒŽŽŽ‹‡ƒ‰ƒ‹•–ƒ••‡••‡–‘””‡ƒ••‡••‡–‘”†‡”™Š‡”‡ƒ’’Ž‹…ƒ–‹‘—Ȁ•ʹ͹ͲŠƒ•„‡‡ƒ……‡’–‡†Ǥ
Ȉ …ƒ•‡‹ˆƒ’’Ž‹…ƒ–‹‘‹•”‡Œ‡…–‡†ǡ–Š‡–Š‡’‡”‹‘†„‡‰‹‹‰ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š•—…Šƒ’’Ž‹…ƒ–‹‘‹•ƒ†‡
–‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š –Š‡ ‘”†‡” ”‡Œ‡…–‹‰ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ‹• •‡”˜‡† ‘ –Š‡ ƒ••‡••‡‡ •ŠƒŽŽ „‡ ‡š…Ž—†‡† ˆ‘”
…ƒŽ…—Žƒ–‹‘‘ˆ–Š‡–‹‡’‡”‹‘†ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”ϐ‹Ž‹‰ƒ’’‡ƒŽ„‡ˆ‘”‡ȋȌƒ‰ƒ‹•–ƒ••‡••‡–‘””‡ƒ••‡••‡–
‘”†‡”Ǥ
‡†‡– ‡ˆˆ‡…–‹˜‡ ˆ”‘ ͲͳǤͲͶǤʹͲͳ͹ ƒ† ƒ……‘”†‹‰Ž› ƒ’’Ž› ‹ ”‡Žƒ–‹‘ –‘ ƒ••‡••‡– ›‡ƒ” ʹͲͳ͹ǦʹͲͳͺ ƒ†
•—„•‡“—‡–›‡ƒ”•Ǥ
Provision for Bank Guarantee [Section 281B]
Ȉ ‡…–‹‘ʹͺͳ‘ˆ–Š‡…–Šƒ•„‡‡ƒ‡†‡†•‘ƒ•–‘’”‘˜‹†‡–Šƒ–••‡••‹‰ˆϐ‹…‡”Ǯǯ•ŠƒŽŽ”‡˜‘‡’”‘˜‹•‹‘ƒŽ
ƒ––ƒ…Š‡–‘ˆ’”‘’‡”–›ƒ†‡—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ–Š‡ƒˆ‘”‡•ƒ‹†•‡…–‹‘‹ƒ…ƒ•‡™Š‡”‡–Š‡ƒ••‡••‡‡
ˆ—”‹•Š‡•ƒ„ƒ‰—ƒ”ƒ–‡‡ˆ”‘ƒ•…Š‡†—Ž‡†„ƒǡˆ‘”ƒƒ‘—–‘–Ž‡••–Šƒ–Š‡ˆƒ‹”ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š
’”‘˜‹•‹‘ƒŽŽ›ƒ––ƒ…Š‡†’”‘’‡”–›‘”ˆ‘”ƒƒ‘—–™Š‹…Š‹••—ˆϐ‹…‹‡––‘’”‘–‡…––Š‡‹–‡”‡•–•‘ˆ–Š‡”‡˜‡—‡Ǥ
Ȉ ‘†‡–‡”‹‡–Š‡ ‘ˆ–Š‡’”‘’‡”–›ǡ–Š‡ƒ›ǡƒ‡ƒ”‡ˆ‡”‡…‡–‘–Š‡ƒŽ—ƒ–‹‘ˆϐ‹…‡”ǡ™Š‘ƒ›„‡
”‡“—‹”‡†–‘•—„‹––Š‡”‡’‘”–‘ˆ–Š‡‡•–‹ƒ–‡‘ˆ–Š‡’”‘’‡”–›–‘–Š‡™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•ˆ”‘–Š‡
†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ•—…Š”‡ˆ‡”‡…‡Ǥ
Lesson 10 ȈAssessment, Appeals & Revision ͸ͳͳ

LESSON ROUND-UP
Ȉ ›’‡•‘ˆ••‡••‡–
Ȉ ‡Žˆ••‡••‡–
Ȉ —ƒ”›••‡••‡–
Ȉ ‡‰—Žƒ”••‡••‡–
Ȉ ‡•– —†‰‡–••‡••‡–
Ȉ …‘‡•…ƒ’‹‰••‡••‡–‘”‡Ǧ••‡••‡–
Ȉ ‡Žˆƒ••‡••‡–‹•–Š‡ϐ‹”•–•–‡’‹–Š‡’”‘…‡••‘ˆƒ••‡••‡–•Ǥ‡Žˆ••‡••‡–‹••‹’Ž›ƒ’”‘…‡••™Š‡”‡ƒ
’‡”•‘ Š‹•‡Žˆ ƒ••‡••‡• Š‹• –ƒš Ž‹ƒ„‹Ž‹–› ‘ –Š‡ ‹…‘‡ ‡ƒ”‡† †—”‹‰ –Š‡ ’ƒ”–‹…—Žƒ” ’”‡˜‹‘—• ›‡ƒ” ƒ†
•—„‹–•…‘‡ƒš‡–—”–‘–Š‡†‡’ƒ”–‡–Ǥ
Ȉ †‡” •—ƒ”› ƒ••‡••‡–ǡ ••‡••‹‰ ˆϐ‹…‡” …‘’Ž‡–‡• –Š‡ ƒ••‡••‡– ™‹–Š‘—– ’ƒ••‹‰ ƒ ”‡‰—Žƒ”
ƒ••‡••‡–‘”†‡”ǤŠ‡••‡••‹‰ˆϐ‹…‡”‹••—‡ƒƒ…‘™Ž‡†‰‡‡–Ȁ‹–‹ƒ–‹‘—†‡”•‡…–‹‘ͳͶ͵ȋͳȌ‘ˆ–ƒš
’ƒ›ƒ„Ž‡ ‘” ”‡ˆ—†ƒ„Ž‡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ ‘ –Š‡ „ƒ•‹• ‘ˆ ‡–—” ‘ˆ …‘‡ ϐ‹Ž‡† „› –Š‡ ƒ••‡••‡‡ —†‡”
•‡…–‹‘ͳ͵ͻ‘”‹”‡•’‘•‡–‘ƒ‘–‹…‡‹••—‡†—†‡”•‡…–‹‘ͳͶʹȋͳȌǤ
Ȉ Š‡”‡ ƒ ”‡–—” Šƒ• „‡‡ ƒ†‡ —†‡” ‡…–‹‘ ͳ͵ͻǡ ‘” ‹ ”‡•’‘•‡ –‘ ƒ ‘–‹…‡ —†‡” •—„Ȃ•‡…–‹‘ ȋͳȌ ‘ˆ
‡…–‹‘ͳͶʹǡ–Š‡••‡••‹‰ˆϐ‹…‡”•ŠƒŽŽǡ‹ˆŠ‡…‘•‹†‡”•‡…‡••ƒ”›‘”‡š’‡†‹‡––‘‡•—”‡–Šƒ––Š‡ƒ••‡••‡‡
Šƒ•‘–—†‡”•–ƒ–‡†–Š‡‹…‘‡‘”Šƒ•‘–…‘’—–‡†‡š…‡••‹˜‡Ž‘••‘”Šƒ•‘–—†‡”’ƒ‹†–Š‡–ƒš‹ƒ›
ƒ‡”ǡ•‡”˜‡‘–Š‡ƒ••‡••‡‡ƒ‘–‹…‡”‡“—‹”‹‰Š‹ǡ‘ƒ†ƒ–‡–‘„‡•’‡…‹ϐ‹‡†–Š‡”‡‹ǡ‡‹–Š‡”–‘ƒ––‡†Š‹•
‘ˆϐ‹…‡‘”–‘’”‘†—…‡ǡ‘”…ƒ—•‡–‘„‡’”‘†—…‡†–Š‡”‡ǡƒ›‡˜‹†‡…‡‘™Š‹…Š–Š‡ƒ••‡••‡‡ƒ›”‡Ž›‹•—’’‘”–
‘ˆ–Š‡”‡–—”Ǥ
Ȉ ‡•– —†‰‡–••‡••‡–ǣŠ‡••‡••‹‰ˆϐ‹…‡”ǡƒˆ–‡”–ƒ‹‰‹–‘ƒ……‘—–ƒŽŽ”‡Ž‡˜ƒ–ƒ–‡”‹ƒŽ™Š‹…ŠŠ‡
Šƒ•‰ƒ–Š‡”‡†ǡƒ†ƒˆ–‡”‰‹˜‹‰–Š‡ƒ••‡••‡‡ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†ǡƒ‡•–Š‡ƒ••‡••‡–‘ˆ–Š‡–‘–ƒŽ
‹…‘‡‘”Ž‘••–‘–Š‡„‡•–‘ˆŠ‹•Œ—†‰‡–ƒ††‡–‡”‹‡–Š‡•—’ƒ›ƒ„Ž‡„›–Š‡ƒ••‡••‡‡‘–Š‡„ƒ•‹•‘ˆ
•—…Šƒ••‡••‡–Ǥ
Ȉ Š‡”‹‰Š––‘ƒ’’‡ƒŽ—•–„‡‰‹˜‡„›‡š’”‡••‡ƒ…–‡–‹–Š‡…–ǤŠ‡”‡ˆ‘”‡ǡ‹…ƒ•‡–Š‡”‡‹•‘’”‘˜‹•‹‘
‹–Š‡…–ˆ‘”ϐ‹Ž‹‰ƒƒ’’‡ƒŽ”‡‰ƒ”†‹‰ƒ’ƒ”–‹…—Žƒ”ƒ––‡”ǡ‘ƒ’’‡ƒŽ•ŠƒŽŽŽ‹‡ǤŠ‡”‹‰Š––‘
Ȉ ƒ’’‡ƒŽƒ”‹•‡•™Š‡”‡–Š‡–ƒš’ƒ›‡”‹•ƒ‰‰”‹‡˜‡†„›–Š‡‘”†‡”’ƒ••‡†„›–Š‡‹…‘‡Ǧ–ƒšƒ—–Š‘”‹–›Ǥ
Ȉ Š‡ ƒ••‡••‡‡ ƒ› ’”‡ˆ‡” ƒ ƒ’’‡ƒŽ ƒ‰ƒ‹•– –Š‡ ‘”†‡”• ‘ˆ –Š‡ ••‡••‹‰ ˆϐ‹…‡” –‘ –Š‡ ‘‹••‹‘‡”
ȋ’’‡ƒŽ•Ȍǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡”‡Ž‡˜ƒ–’”‘˜‹•‹‘•—†‡”‡…–‹‘ʹͶ͸ƒ†ƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ–Š‡
‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ…ƒ„‡’”‡ˆ‡””‡†„›–Š‡••‡••‡‡‘”–Š‡‘‹••‹‘‡”‘ˆ…‘‡ƒšƒ†•—…Š
ƒ’’‡ƒŽŽ‹‡•™‹–Š–Š‡’’‡ŽŽƒ–‡”‹„—ƒŽǤ
Ȉ Š‡‡–”ƒŽ
‘˜‡”‡–•ŠƒŽŽ…‘•–‹–—–‡ƒ’’‡ŽŽƒ–‡”‹„—ƒŽ…‘•‹•–‹‰‘ˆƒ•ƒ›Œ—†‹…‹ƒŽƒ†ƒ……‘—–ƒ–
‡„‡”• ƒ• ‹– –Š‹• ϐ‹– –‘ ‡š‡”…‹•‡ –Š‡ ’‘™‡”• ƒ† †‹•…Šƒ”‰‡ –Š‡ ˆ—…–‹‘• …‘ˆ‡””‡† ‘ –Š‡ ’’‡ŽŽƒ–‡
”‹„—ƒŽ„›–Š‹•…–Ǥ
Ȉ ‡…–‹‘ʹ͸Ͳ’”‘˜‹†‡•–Šƒ–ƒƒ’’‡ƒŽ•ŠƒŽŽŽ‹‡–‘–Š‡‹‰Š‘—”–ˆ”‘‡˜‡”›‘”†‡”’ƒ••‡†‹ƒ’’‡ƒŽ„›–Š‡
’’‡ŽŽƒ–‡”‹„—ƒŽ‹ˆ–Š‡‹‰Š‘—”–‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡…ƒ•‡‹˜‘Ž˜‡•ƒ•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™Ǥ
Ȉ Š‡ƒ‰‰”‹‡˜‡†’ƒ”–›‹•‡–‹–Ž‡†–‘ƒ’’‡ƒŽ–‘–Š‡—’”‡‡‘—”–ƒ‰ƒ‹•––Š‡Œ—†‰‡–†‡Ž‹˜‡”‡†„›–Š‡‹‰Š
‘—”–Ǥ
Ȉ Šƒ’–‡”•  ƒ†  ‘ˆ …‘‡Ǧ–ƒš …–ǡ ͳͻ͸ͳǡ …‘–ƒ‹ ˜ƒ”‹‘—• ’”‘˜‹•‹‘• ‡’‘™‡”‹‰ ƒ …‘‡Ǧ –ƒš
—–Š‘”‹–›–‘Ž‡˜›’‡ƒŽ–›‹…ƒ•‡‘ˆ…‡”–ƒ‹†‡ˆƒ—Ž–•Ǥ
͸ͳʹ Lesson 10 Ȉ EP-TL

TEST YOURSELF
(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation)
Multiple Choice Questions (MCQs)
ͳǤŠ‡ƒ’’‡ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ’’‡ŽŽƒ–‡”‹„—ƒŽ…ƒ„‡ϐ‹Ž‡†–‘‹‰Š‘—”–ǣ
ȋƒȌˆ‘”ƒ›ƒ––‡”‹–Š‡‘”†‡”
ȋ„Ȍ‘Ž›‹ˆƒ›“—‡•–‹‘‘ˆˆƒ…–‹•‹˜‘Ž˜‡†
ȋ…Ȍ‘Ž›‹ˆƒ›•—„•–ƒ–‹ƒŽ“—‡•–‹‘‘ˆŽƒ™‹•‹˜‘Ž˜‡†
ȋ†Ȍ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣ…
ʹǤ’’‡ƒŽ–‘‹‰Š‘—”–ƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ‹•–‘„‡ϐ‹Ž‡†™‹–Š‹ƒ’‡”‹‘†‘ˆǦǦǦǦǦǦǦǦǦˆ”‘–Š‡†ƒ–‡‘
™Š‹…Š–Š‡ǯ•‘”†‡”‹•…‘—‹…ƒ–‡†–‘–Š‡–ƒš’ƒ›‡”
ȋƒȌ͵Ͳƒ›•
ȋ„Ȍ͸Ͳƒ›•
ȋ…ȌͻͲƒ›•
ȋ†ȌͳʹͲƒ›•
•™‡”ǣ†
͵Ǥ…‘‡ƒš—–Š‘”‹–›„‡Ž‘™–Š‡”ƒ‘ˆ‡’—–›‘‹••‹‘‡”‘ˆ…‘‡ƒšǣ
ȋƒȌ‹•ƒ’’‘‹–‡†„›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•
ȋ„Ȍ  ƒ› „‡ ƒ’’‘‹–‡† „› –Š‡ ‘ƒ”†Ȁ‹”‡…–‘”
‡‡”ƒŽȀŠ‹‡ˆ ‘‹••‹‘‡”Ȁ‹”‡…–‘”Ȁ‘‹••‹‘‡” ‹ˆ
ƒ—–Š‘”‹•‡†„›‘ƒ”†
ȋ…Ȍ‹•ƒ’’‘‹–‡†‘Ž›„›–Š‡‡–”ƒŽ
‘˜–Ǥ
ȋ†Ȍ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣ„
ͶǤŠ‡ƒ••‡••‡‡…ƒ‘„Œ‡…––‘–Š‡Œ—”‹•†‹…–‹‘‘ˆ••‡••‹‰ˆϐ‹…‡”ǡ‹ˆ‘”‡–—”‹•ϐ‹Ž‡†ǣ
ȋƒȌ™‹–Š‹͵‘–Š•‘ˆ‘–‹…‡—Ȁ•ͳͶʹȋͳȌ‘”ͳͶͺˆ‘”ϐ‹Ž‹‰–Š‡”‡–—”‘ˆ‹…‘‡‘”–‹‡ƒŽŽ‘™‡†–‘•Š‘™
…ƒ—•‡™Š›„‡•–Œ—†‰‡–ƒ••‡••‡–—Ȁ•ͳͶͶ•Š‘—Ž†‘–„‡ƒ†‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
ȋ„Ȍ™‹–Š‹‘‡‘–Š‘ˆ‘–‹…‡—Ȁ•ͳͶʹȋͳȌ‘”ͳͶͺˆ‘”ϐ‹Ž‹‰–Š‡”‡–—”‘ˆ…‘‡‘”–‹‡ƒŽŽ‘™‡†–‘•Š‘™
…ƒ—•‡—Ȁ•ͳͶͶ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
ȋ…Ȍ™‹–Š‹–Š‡–‹‡ƒŽŽ‘™‡†‹‘–‹…‡—Ȁ•ͳͶʹȋͳȌ‘”ͳͶͺˆ‘”ϐ‹Ž‹‰”‡–—”‘ˆ…‘‡‘”–‹‡ƒŽŽ‘™‡†–‘•Š‘™
…ƒ—•‡—Ȁ•ͳͶͶ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
†Ȍ‘‡‘ˆ–Š‡ƒ„‘˜‡Ǥ
•™‡”ǣ…
ͷǤŠ‡”‡–‘–ƒŽ‹…‘‡ƒ••‡••‡†„›–Š‡••‡••‹‰ˆϐ‹…‡”™ƒ••ǤͶǡͷͲǡͲͲͲƒ†–Š‡ƒ••‡••‡‡™‹•Š‡•–‘ϐ‹Ž‡ƒ
ƒ’’‡ƒŽ–‘…‘‡ƒš’’‡ŽŽƒ–‡”‹„—ƒŽƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ‘‹••‹‘‡”ȋ’’‡ƒŽ•ȌǤŠ‡ˆ‡‡ˆ‘”ϐ‹Ž‹‰
•—…Šƒ’’‡ƒŽ•ŠƒŽŽ„‡ǣ
ƒȌ•ǤͳǡͷͲͲ
„Ȍ•ǤʹǡͷͲͲ
…Ȍ•ǤͶǡͷͲͲ
†Ȍ•ǤͳͲǡͲͲͲ
•™‡”ǣ…
Lesson 10 ȈAssessment, Appeals & Revision ͸ͳ͵

LIST OF FUTHER READINGS

Ȉ Direct Taxes Law and Practice
—–Š‘”ǣ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
—„Ž‹•Š‡”ǣƒšƒ
Ȉ Direct Taxes Ready Reckoner with Tax Planning
—–Š‘”ǣ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
—„Ž‹•Š‡”ǣ‘Ž–‡”•Ž—™‡”

OTHER REFERENCES
Ȉ Income Tax Act, 1961:https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
Ȉ Income Tax Rules, 1962: https://www.incometaxindia.gov.in/Pages/rules/income-tax-rules-1962. aspx
Ȉ Circulars: https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
Ȉ ‘–‹ϐ‹…ƒ–‹‘•ǣŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š
͸ͳͶ Lesson 10 Ȉ EP-TL
 Concept of Indirect Taxes at a
Lesson 11 Glance
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ CBIC
Ȉ ˜‡”˜‹‡™‘ˆ†‹”‡…–ƒšƒ–‹‘
Ȉ

Ȉ †‹‹•–”ƒ–‹‘—†‡”†‹”‡…–ƒšƒ–‹‘”‡‰‹‡
Ȉ †‹”‡…–ƒš
Ȉ ‘•–‹–—–‹‘ƒŽƒ‡†‡–•”‡“—‹”‡†–‘”‘ŽŽ‘—–

Ȉ  Ȉ š‹•–‹‰›•–‡‘ˆ†‹”‡…–ƒšƒ–‹‘
Ȉ 
 Ȉ ˜‡”˜‹‡™‘ˆ’”‡˜‹‘—•†‹”‡…–ƒšƒ–‹‘”‡‰‹‡
Ȉ 

Ȉ 

Ȉ 

Ȉ
‘—…‹Ž

Lesson Outline
Ȉ Background
Ȉ ‘•–‹–—–‹‘ƒŽ‘™‡”•‘ˆƒšƒ–‹‘
Ȉ †‹”‡…–ƒš‡•‹†‹ƒȂ˜‡”˜‹‡™
Ȉ ”‡
ƒš–”—…–—”‡ƒ†‡ϐ‹…‹‡…‹‡•
Ȉ †‹‹•–”ƒ–‹‘‘ˆ†‹”‡…–ƒšƒ–‹‘‹†‹ƒ
Ȉ š‹•–‹‰ƒš–”—…–—”‡
Ȉ 
Ȉ

Ȉ 
Ȉ   

Ȉ  
 616 Lesson 11 Ȉ EP-TL

BACKGROUND
ƒšƒ–‹‘‹•‘‡‘ˆ–Š‡‡••‡–‹ƒŽƒ††‡…‹•‹˜‡‡Ž‡‡–•‹–Š‡™‘”‹‰‘ˆƒ…Š‹‡”›‘ˆƒƒ–‹‘Ǥ–ˆ‘”•ƒ“—‹–‡••‡–‹ƒŽ
’ƒ”–‘ˆ†‡˜‡Ž‘’‡–‘ˆƒ›…‘—–”›ǤŠ‡”‡˜‡—‡–Šƒ–‹•…‘ŽŽ‡…–‡†‹–Š‡ˆ‘”‘ˆ–ƒš‡•‹•—•‡†ˆ‘”’”‘˜‹†‹‰‰‘‘†•
ƒ†•‡”˜‹…‡•ˆ‘”’—„Ž‹…—–‹Ž‹–›•—…Šƒ•‹ˆ”ƒ•–”—…–—”‡ǡ–”ƒ•’‘”–ƒ–‹‘ǡˆƒ…‹Ž‹–‹‡•Ž‹‡”ƒ‹•Š‡Ž–‡”•ƒ†…‘‘ƒ”‡ƒ•ǡ
•ƒ‹–ƒ–‹‘ƒ†ƒŽŽ‘–Š‡”•—…Šƒ‡‹–‹‡•™Š‹…Šƒ”‡’”‘˜‹†‡†„›–Š‡‰‘˜‡”‡–‘ˆ–Š‡…‘—–”›Ǥ
–ƒš…ƒ„‡•ƒ‹†–‘„‡ƒ‘Ǧ’‡ƒŽǡ›‡–…‘’—Ž•‘”›–”ƒ•ˆ‡”‘ˆ”‡•‘—”…‡•ˆ”‘–Š‡’”‹˜ƒ–‡–‘–Š‡’—„Ž‹…•‡…–‘”Ž‡˜‹‡†
‘–Š‡„ƒ•‹•‘ˆƒ’”‡†‡–‡”‹‡†…”‹–‡”‹ƒǤƒš‡•ƒ”‡…‘ŽŽ‡…–‡†ˆ‘”•‡”˜‹‰–Š‡’”‹ƒ”›’—”’‘•‡‘ˆ’”‘˜‹†‹‰•—ˆϐ‹…‹‡–
”‡˜‡—‡•–‘–Š‡–ƒ–‡ƒ†Šƒ˜‡„‡…‘‡ƒ‡…Šƒ‹•–Š”‘—‰Š™Š‹…Š–Š‡•‘…‹ƒŽƒ†‡…‘‘‹…‘„Œ‡…–‹˜‡•‘ˆƒ™‡Žˆƒ”‡
•–ƒ–‡ …‘—Ž† „‡ ƒ…Š‹‡˜‡†Ǥ ˜‡”› ƒ‘—– –Šƒ– ‹• …‘ŽŽ‡…–‡† ‹• …‘–”‹„—–‡† –‘™ƒ”†• ’”‘˜‹†‹‰ „‡––‡” ‹ˆ”ƒ•–”—…–—”‡
ˆƒ…‹Ž‹–‹‡•ˆ‘”’—„Ž‹…ƒ–Žƒ”‰‡ǤŠ‡•ƒ‡‹•ƒŽ•‘—–‹Ž‹œ‡†–‘™ƒ”†•”—”ƒŽ”‡˜‹˜ƒŽƒ†•‘…‹ƒŽ™‡ŽŽǦ„‡‹‰‘ˆ‰‡‡”ƒŽ’—„Ž‹…Ǥ
ƒšƒ–‹‘•›•–‡‹•‹•–”—‡–ƒŽ‹”‡‘˜‹‰’‘˜‡”–›ƒ†‹‡“—ƒŽ‹–›ˆ”‘–Š‡•‘…‹‡–›Ǥ–Š‡‘–Š‡”Šƒ†ǡ–ƒš”‡ˆ‘”
‹•ˆ—†ƒ‡–ƒŽ‡“—‹’‡–‹•–”ƒ–‡‰›†‡˜‡Ž‘’‡–ƒ‹‹‰ƒ–Š‘Ž‹•–‹…‰”‘™–Š‘ˆ–Š‡•‘…‹‡–›ǤŠ—•ǡ–Š‡‹’‘”–ƒ…‡‘ˆ
ƒ‡ˆϐ‹…‹‡––ƒš•›•–‡ƒ†”‡ˆ‘”•‹–ƒš•›•–‡…ƒ‘–„‡—†‡”‹‡†Ǥ

GST HISTORY IN INDIA

 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 617

Š‡”‡ƒ”‡–™‘–›’‡•‘ˆ–ƒš‡•Ž‡˜‹‡†‹†‹ƒǡ‹Ǥ‡Ǥǡ‹”‡…––ƒšǡ™Š‹…Š‹•Ž‡˜‹‡††‹”‡…–Ž›‘‹…‘‡ǡ’”‘ˆ‡••‹‘ǡ‡–…Ǥǡ‘ˆƒ
‹†‹˜‹†—ƒŽƒ†™Š‡”‡–Š‡–ƒš„—”†‡…ƒ‘–„‡’ƒ••‡†‘–‘ƒ›‘–Š‡”’‡”•‘Ǥ†‹”‡…––ƒšǡ‘–Š‡‘–Š‡”Šƒ†ǡ‹•‘–
’ƒ‹†‘–Š‡†‹”‡…–‹…‘‡‘ˆƒ‹†‹˜‹†—ƒŽ’‡”•‘„—–‹•Ž‡˜‹‡†‹†‹”‡…–Ž›‘–Š‡—Ž–‹ƒ–‡…‘•—‡”‘ˆ‰‘‘†•ƒ†
•‡”˜‹…‡•ˆ‘”…‘•—’–‹‘‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ‡…‡ǡ–Š‡ˆ‘”‡”‹•Ž‡˜‹‡†‘–Š‡‹…‘‡™Š‹Ž‡Žƒ––‡”‹•Ž‡˜‹‡†‘
–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ‹†‹”‡…––ƒš‡•ǡ‹‡†‹ƒ–‡„—”†‡‹•‘‘‡’‡”•‘ƒ†—Ž–‹ƒ–‡„—”†‡‹•‘•‘‡‘–Š‡”
’‡”•‘‹Ǥ‡Ǥǡ–Š‡’‡”•‘™Š‘—Ž–‹ƒ–‡Ž›…‘•—‡•Ǥ

‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍ™ƒ•”‘ŽŽ‡†‘—–‹†‹ƒ™‹–Š‡ˆˆ‡…–ˆ”‘ͳst —Ž›ǡʹͲͳ͹Ǥ
‹•‘‡‘ˆ–Š‡‰”‡ƒ–‡•––ƒš
”‡ˆ‘”•‹†‹ƒǤ––”ƒ•ˆ‘”•–Š‡•›•–‡‘ˆ–ƒšƒ–‹‘ƒ†–ƒšƒ†‹‹•–”ƒ–‹‘‹–‘ƒ†‹‰‹–ƒŽ™‘”Ž†„›ƒ†‘’–‹‰–Š‡
Žƒ–‡•–‹ˆ‘”ƒ–‹‘–‡…Š‘Ž‘‰›Ǥ‹–Š–Š‡‹–”‘†—…–‹‘‘ˆ
ǡ†‹ƒŠƒ•Œ‘‹‡†–Š‡…Ž—„‘ˆ†‡˜‡Ž‘’‡†ƒ†’”‘‰”‡••‹‰
ƒ–‹‘•™Š‹…Šƒ”‡ƒŽ”‡ƒ†›Šƒ˜‹‰ƒ…‘‘–ƒš‘‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ

Following are some of the distinctions between direct and indirect taxes:

DIRECT TAXES INDIRECT TAXES

Š‡•‡ƒ”‡ƒ‹Ž›‘‹…‘‡ǡ™‡ƒŽ–Šǡ’”‘ˆ‡••‹‘‡–…Ǥ ‘ˆ Š‡•‡ ƒ”‡ …‘•—’–‹‘ „ƒ•‡† –ƒš‡• ‘ ‰‘‘†• ƒ†
’‡”•‘•Ǥ •‡”˜‹…‡•Ǥ
ƒš’ƒ›‡”’ƒ›•–ƒš‡•†‹”‡…–Ž›–‘‰‘˜‡”‡–Ǥ ƒš’ƒ›‡”’ƒ›•–ƒš‡•‹†‹”‡…–Ž›–Š”‘—‰Š‹–‡”‡†‹ƒ”‹‡•
Ž‹‡‹’‘”–‡”•ǡ•—’’Ž‹‡”•‡–…Ǥ
‹”‡…––ƒš‡•„‡…‘‡’ƒ›ƒ„Ž‡ƒˆ–‡”–Š‡„‡‡ϐ‹–Ȁ‹…‘‡ †‹”‡…– –ƒš‡• ƒ”‡ ’ƒ›ƒ„Ž‡ ‡˜‡ „‡ˆ‘”‡ –Š‡ ‰‘‘†•Ȁ
”‡ƒ…Š‡•–Š‡–ƒš’ƒ›‡”Ǥ •‡”˜‹…‡•”‡ƒ…Š–Š‡–ƒš’ƒ›‡”Ǥ
 618 Lesson 11 Ȉ EP-TL

…‘‡–ƒšǡ…‘”’‘”ƒ–‹‘–ƒšƒ”‡ƒ‹•‘—”…‡•‘ˆ†‹”‡…––ƒšǤ —•–‘•ƒ†
ƒ”‡ƒŒ‘”‹†‹”‡…––ƒš‡•‹†‹ƒǤ

†‹˜‹†—ƒŽ•ǡ  •ǡ ϐ‹”• ƒ† …‘’ƒ‹‡• ƒ”‡ –Š‡ ƒš †Ǧ…‘•—‡” ‘ˆ –Š‡ ‰‘‘†• ƒ† •‡”˜‹…‡• „‡ƒ” –Š‡
’ƒ›‡”•Ǥ ϐ‹ƒŽ„—”†‡‘ˆ–ƒšǤ
‹”‡…–ƒš‹•’”‘‰”‡••‹˜‡‹ƒ–—”‡‹Ǥ‡Ǥǡ‹–•”ƒ–‡‹…”‡ƒ•‡• †‹”‡…–ƒš‹•”‡‰”‡••‹˜‡‹ƒ–—”‡‹Ǥ‡Ǥǡ‹–•”ƒ–‡†‡…”‡ƒ•‡•
™‹–Š–ƒš’ƒ›‡”ǯ•‹…‘‡Ǥ ™‹–Š‹…”‡ƒ•‡‹‹…‘‡Ǥ
‰‘˜‡”•‹”‡…–ƒš‡•‹†‹ƒǤ ‰‘˜‡”•†‹”‡…–ƒš‡•‹†‹ƒǤ

CONSTITUTIONAL POWERS OF TAXATION

‘•–‹–—–‹‘ ‘ˆ †‹ƒ ‹• –Š‡ •—’”‡‡ Žƒ™ ‘ˆ †‹ƒǤ – Žƒ›• †‘™ –Š‡ ˆ”ƒ‡™‘” †‡ϐ‹‹‰ ˆ—†ƒ‡–ƒŽ ’‘Ž‹–‹…ƒŽ
’”‹…‹’Ž‡•ǡ ‡•–ƒ„Ž‹•Š‡• –Š‡ •–”—…–—”‡ǡ ’”‘…‡†—”‡•ǡ ’‘™‡”• ƒ† †—–‹‡• ‘ˆ ‰‘˜‡”‡– ‹•–‹–—–‹‘• ƒ† •‡–• ‘—–
ˆ—†ƒ‡–ƒŽ ”‹‰Š–•ǡ †‹”‡…–‹˜‡ ’”‹…‹’Ž‡• ƒ† –Š‡ †—–‹‡• ‘ˆ …‹–‹œ‡•Ǥ ‘•–‹–—–‹‘ ‘ˆ †‹ƒ –Š—• Žƒ›• †‘™ –Š‡
ˆ‘—†ƒ–‹‘„”‹…ˆ‘”ƒ””ƒ‰‹‰–Š‡’‘™‡”•ǡ†—–‹‡•ƒ†–Š‡•—’”‡ƒ…›–‘Ž‡‰‹•Žƒ–‡ƒŽŽŽƒ™•‘ˆ†‹ƒǤŠ‡ƒ—–Š‘”‹–›–‘
Ž‡˜›ƒ–ƒš‹•Š‡…‡†‡”‹˜‡†ˆ”‘–Š‡‘•–‹–—–‹‘‘ˆ†‹ƒǤ
”–‹…Ž‡ʹͶ͸‘ˆ–Š‡†‹ƒ‘•–‹–—–‹‘ǡŽƒ›•†‘™–Š”‡‡–›’‡•‘ˆŽ‹•–•ƒ††‹•–”‹„—–‡•Ž‡‰‹•Žƒ–‹˜‡’‘™‡”•‹…Ž—†‹‰
–ƒšƒ–‹‘ǡ„‡–™‡‡–Š‡ƒ”Ž‹ƒ‡–‘ˆ†‹ƒƒ†–Š‡–ƒ–‡‡‰‹•Žƒ–—”‡•Ǥ–Žƒ›•†‘™–Š‡•—„Œ‡…–ƒ––‡”•™‹–Š”‡•’‡…–
–‘™Š‹…Š‘Ž›–Š‡ƒ”Ž‹ƒ‡–…ƒƒ‡”—Ž‡•ǡ™Š‡”‡–Š‡–ƒ–‡‡‰‹•Žƒ–—”‡•…ƒ‡š…Ž—•‹˜‡Ž›Žƒ›†‘™–Š‡”—Ž‡•ƒ†ƒ
‘…—””‡–‹•–™Š‡”‡„›„‘–Š–Š‡ƒ”Ž‹ƒ‡–ƒ•™‡ŽŽƒ•–ƒ–‡‡‰‹•Žƒ–—”‡•…ƒŽ‡‰‹•Žƒ–‡ǤŠ—•ǡ–Š‡‘•–‹–—–‹‘‘ˆ
†‹ƒƒŽŽ‘…ƒ–‡•–Š‡’‘™‡”–‘Ž‡˜›˜ƒ”‹‘—•–ƒš‡•„‡–™‡‡–Š‡‡–”‡ƒ†–Š‡•–ƒ–‡•Ǥ
”‘ƒ†Ž›ǡ–Š‡’”‡˜‹‘—•‹†‹”‡…––ƒš”‡‰‹‡…‘•‹•–‡†‘ˆ‡–”ƒŽƒ†–ƒ–‡Žƒ™•Ǥ ‘”–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ‡–”ƒŽ
š…‹•‡ǡ—•–‘•ƒ†‡”˜‹…‡–ƒš™‡”‡–Š‡–Š”‡‡ƒ‹…‘’‘‡–•‘ˆ‹†‹”‡…––ƒš‡•ǤŠ‹Ž‡ˆ‘”–ƒ–‡
‘˜‡”‡–ǡ
ƒŽ—‡††‡†ƒšȋȌƒ†‡–”ƒŽƒŽ‡•ƒšȋȌ™‡”‡–Š‡ƒŒ‘”–ƒš‡•ƒŽ‘‰™‹–Š…–”‘‹ǡ–‡”–ƒ‹‡–ƒš‡–…Ǥ
ƒšƒ–‹‘‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•™ƒ•‰‘˜‡”‡†—†‡”•‡’ƒ”ƒ–‡Ž‡‰‹•Žƒ–—”‡•Ǥ”‡•’‡…–‘ˆ‰‘‘†•ǡ–Š‡‡–”‡Šƒ†–Š‡
’‘™‡”•–‘Ž‡˜›–ƒš‘–Š‡ƒ—ˆƒ…–—”‡‘ˆ‰‘‘†•ȋ‡š…‡’–ƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘ǡ‘’‹—ǡƒ”…‘–‹…•
‡–…ǤȌ™Š‹Ž‡–Š‡•–ƒ–‡•Šƒ†–Š‡’‘™‡”•–‘Ž‡˜›–ƒš‘–Š‡•ƒŽ‡‘ˆ‰‘‘†•Ǥ–Š‡…ƒ•‡‘ˆ‹–‡”Ǧ•–ƒ–‡•ƒŽ‡•ǡ–Š‡‡–”‡Šƒ†
–Š‡’‘™‡”–‘Ž‡˜›ƒ–ƒšȋ‡–”ƒŽƒŽ‡•ƒšȌ„—–ǡ–Š‡–ƒš™ƒ•…‘ŽŽ‡…–‡†ƒ†”‡–ƒ‹‡†‡–‹”‡Ž›„›–Š‡•–ƒ–‡•Ǥ•ˆƒ”ƒ•
•‡”˜‹…‡• ™‡”‡ …‘…‡”‡†ǡ ‹– ™ƒ• –Š‡ ‡–”‡ ƒŽ‘‡ –Šƒ– ™ƒ• ‡’‘™‡”‡† –‘ Ž‡˜› •‡”˜‹…‡ –ƒš ‰‘˜‡”‡† „› –Š‡
‹ƒ…‡…–Ǥ
–”‘†—…–‹‘‘ˆ–Š‡ƒŽ—‡††‡†ƒšȋȌ™ƒ•…‘•‹†‡”‡†–‘„‡ƒƒŒ‘”•–‡’ƒ†ƒ‡••‡–‹ƒŽ„”‡ƒ–Š”‘—‰Š‹–Š‡
ϐ‹‡Ž†‘ˆ‹†‹”‡…––ƒš‡•ǤŽ–Š‘—‰Š’”‹ƒ”‹Ž›™ƒ••—……‡••ˆ—Žǡ–Š‡”‡™‡”‡…‡”–ƒ‹•Š‘”–…‘‹‰•‹–Š‡•–”—…–—”‡‘ˆ
ǤŠ‡”‡ƒ•‘•ˆ‘”•—…Š•Š‘”–…‘‹‰•™ƒ•–Šƒ––Š‡”‡™ƒ•ƒ‘•ƒ‹…‘ˆ–ƒš‡•„‡‹‰Ž‡˜‹‡†‘‰‘‘†•ƒ†•‡”˜‹…‡•ǡ
•—…Š ƒ• Ž—š—”› –ƒšǡ ‡–‡”–ƒ‹‡– –ƒšǡ ‡–…Ǥǡ ™Š‹…Š ™‡”‡ ‘– •—„•—‡† ‹ –Š‡  –Š‡”‡„› ƒ”‰‹ƒŽ‹œ‹‰ –Š‡
„‡‡ˆ‹–• ‘ˆ …‘’”‡Š‡•‹˜‡ –ƒš …”‡†‹– ‡…Šƒ‹•Ǥ —”–Š‡” –‘ –Š‹•ǡ ƒ› ‘–Š‡” –ƒš‡• ™‡”‡ Ž‡˜‹‡† „› „‘–Š –Š‡
‡–”ƒŽ
‘˜‡”‡–ƒ†–Š‡–ƒ–‡
‘˜‡”‡–‘’”‘†—…–‹‘ǡƒ—ˆƒ…–—”‡ƒ††‹•–”‹„—–‹˜‡–”ƒ†‡ǡ™Š‡”‡‘
•‡–Ǧ‘ˆˆ™ƒ•ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡ˆ‘”‘ˆ‹’—––ƒš…”‡†‹–ǤŠ‡•‡–ƒš‡•ƒ††‡†–‘–Š‡…‘•–‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ†Ž‡†
–‘–ƒš‘–ƒš‹Ǥ‡Ǥǡ…ƒ•…ƒ†‹‰‘ˆ–ƒš‡•ƒ†–Š‡‡”•–™Š‹Ž‡‹†‹”‡…––ƒš”‡‰‹‡™ƒ•‹‡ˆˆ‡…–‹˜‡–‘”‡‘˜‡–Š‹•…ƒ•…ƒ†‹‰
‡ˆˆ‡…–‘ˆ–ƒš‡•Ǥ
Š‡•‡–ƒš‡•™‡”‡„‡‹‰Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†‡š…Ž—•‹˜‡Ž›—†‡”–Š‡‹””‡•’‡…–‹˜‡‡–”‹‡•‹‹‘ƒ†–ƒ–‡Ž‹•–•ƒ•
†‡ƒ”…ƒ–‡†„›”–‹…Ž‡ʹͶ͸Ǥ

‘‘†•Ƭ‡”˜‹…‡•ƒšȋ
Ȍ”‡‰‹‡‘ˆ‹†‹”‡…––ƒš‡•„”‘—‰Š–ƒ•‹‰Ž‡–ƒš™Š‹…Š
™ƒ•Ž‡˜‹‡†‘•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™‹–Š…‘…—””‡–Œ—”‹•†‹…–‹‘ Š‡‘•–‹–—–‹‘‘ˆ†‹ƒŠƒ•„‡‡
‘ˆ‡–”‡ƒ†•–ƒ–‡•ǤŠ‹•Ž‡†–‘„”‹‰‹‰ƒ„‘—–ƒ‡†‡–•‹–Š‡‘•–‹–—–‹‘ ƒ‡†‡†„›–Š‡‘•–‹–—–‹‘ȋ‡
•‘–Šƒ––Š‡›ƒ›•‹—Ž–ƒ‡‘—•Ž›Ž‡˜›ƒ†…‘ŽŽ‡…–
‘‘†•Ƭ‡”˜‹…‡•ƒšǤ —†”‡† ƒ† ‹”•– ‡†‡–Ȍ
…–ǡʹͲͳ͸ˆ‘”–Š‹•’—”’‘•‡Ǥ
‘ „”‹‰ ‘—–
 Žƒ™• ‰‘˜‡”‹‰ ‰‘‘†• ƒ† •‡”˜‹…‡•ǡ ”–‹…Ž‡ ʹͶ͸ Šƒ• „‡‡
‹•‡”–‡† –‘ ‡ƒ„Ž‡ Ž‡˜› ‘ˆ –ƒš ‘ ‰‘‘†• ƒ† •‡”˜‹…‡• •‹—Ž–ƒ‡‘—•Ž› „‘–Š „›
‡–”‡ƒ†•–ƒ–‡•Ȁ—‹‘–‡””‹–‘”‹‡•Ǥ
 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 619

Goods and Services Tax Council

 ‘—…‹Ž ‹• ƒ …‘•–‹–—–‹‘ƒŽ „‘†› ˆ‘” ƒ‹‰ ”‡…‘‡†ƒ–‹‘• –‘ –Š‡ ‹‘ ƒ† –ƒ–‡

‘˜‡”‡–‘‹••—‡•”‡Žƒ–‡†–‘
‘‘†•ƒ†‡”˜‹…‡•ƒšǤŠ‡
‘—…‹Ž‹•…Šƒ‹”‡†„›–Š‡‹‘
‹ƒ…‡ ‹‹•–‡” ƒ† ‘–Š‡” ‡„‡”• ƒ”‡ –Š‡ ‹‘ –ƒ–‡ ‹‹•–‡” ‘ˆ ‡˜‡—‡ ‘” ‹ƒ…‡ ƒ†
‹‹•–‡”•‹Ǧ…Šƒ”‰‡‘ˆ ‹ƒ…‡‘”ƒšƒ–‹‘‘ˆƒŽŽ–Š‡–ƒ–‡•Ǥ–‹•–Š‡‡›†‡…‹•‹‘ƒ‹‰„‘†›Ǥ

Structure of GST Council

Š‡•–”—…–—”‡‘ˆ–Š‡
‘—…‹Ž‹•†‡–‡”‹‡†„›”–‹…Ž‡ʹ͹ͻȋͳȌ‘ˆ–Š‡ƒ‡†‡†‘•–‹–—–‹‘‘ˆ†‹ƒǤŠ‹•”–‹…Ž‡
•–ƒ–‡•–Šƒ––Š‡
‘—…‹Ž•Š‘—Ž†„‡…‘•–‹–—–‡†„›–Š‡”‡•‹†‡–‘ˆ†‹ƒ™‹–Š‹ƒ’‡”‹‘†‘ˆ͸Ͳ†ƒ›•‘ˆ–Š‡‹…‡’–‹‘
‘ˆ”–‹…Ž‡ʹ͹ͻǤŠ‡”–‹…Ž‡•–ƒ–‡•–Šƒ–
‘—…‹Ž•Š‘—Ž†„‡Œ‘‹–ˆ‘”—‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ•™‡ŽŽƒ•–Š‡
–ƒ–‡
‘˜‡”‡–•Ǥ–™‘—Ž†…‘•‹•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‡„‡”•Ȃ
Ȉ Š‡Šƒ‹”’‡”•‘‘ˆ–Š‡…‘—…‹Ž™‘—Ž†„‡–Š‡‹‘ ‹ƒ…‡‹‹•–‡”‘ˆ–Š‡…‘—–”›Ǥ
Ȉ Š‡‹‘‹‹•–‡”‘ˆ–ƒ–‡™‘—Ž†„‡ƒ‡„‡”‘ˆ–Š‡
‘—…‹ŽǤ‡Ȁ•Š‡™‘—Ž†„‡‹…Šƒ”‰‡‘ˆ‡˜‡—‡‘ˆ
‹ƒ…‡Ǥ
Ȉ Š‡‡„‡”•‘ˆ–Š‡
‘—…‹Ž™‘—Ž†„‡–Š‡‹‹•–‡”™Š‘‹•‹…Šƒ”‰‡‘ˆϐ‹ƒ…‡‘”–ƒšƒ–‹‘‘”ƒ›‘–Š‡”
‹‹•–‡”ƒ•‘‹ƒ–‡†„›–Š‡”‡•’‡…–‹˜‡–ƒ–‡
‘˜‡”‡–•Ǥƒ…Š–ƒ–‡
‘˜‡”‡–™‘—Ž†‘‹ƒ–‡‘‡
‹‹•–‡”–‘ƒ…–ƒ•ƒ‡„‡”‘ˆ–Š‡
‘—…‹ŽǤ

GST Council Recommendations :

Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒš‘—…‹Ž•ŠƒŽŽƒ‡”‡…‘‡†ƒ–‹‘•–‘–Š‡‹‘ƒ†–Š‡–ƒ–‡•‘Ȅ
‘ –Š‡–ƒš‡•ǡ…‡••‡•ƒ†•—”…Šƒ”‰‡•Ž‡˜‹‡†„›–Š‡‹‘ǡ–Š‡–ƒ–‡•ƒ†–Š‡Ž‘…ƒŽ„‘†‹‡•™Š‹…Šƒ›„‡
•—„•—‡†‹–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšǢ
‘ –Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–Šƒ–ƒ›„‡•—„Œ‡…–‡†–‘ǡ‘”‡š‡’–‡†ˆ”‘–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšǢ
‘ ‘†‡Ž
‘‘†•ƒ†‡”˜‹…‡•ƒšƒ™•ǡ’”‹…‹’Ž‡•‘ˆŽ‡˜›ǡƒ’’‘”–‹‘‡–‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒš
Ž‡˜‹‡† ‘ •—’’Ž‹‡• ‹ –Š‡ …‘—”•‡ ‘ˆ ‹–‡”Ǧ–ƒ–‡ –”ƒ†‡ ‘” …‘‡”…‡ —†‡” ƒ”–‹…Ž‡ ʹ͸ͻ ƒ† –Š‡
’”‹…‹’Ž‡•–Šƒ–‰‘˜‡”–Š‡’Žƒ…‡‘ˆ•—’’Ž›Ǣ
‘ –Š‡–Š”‡•Š‘Ž†Ž‹‹–‘ˆ–—”‘˜‡”„‡Ž‘™™Š‹…Š‰‘‘†•ƒ†•‡”˜‹…‡•ƒ›„‡‡š‡’–‡†ˆ”‘‰‘‘†•ƒ†
•‡”˜‹…‡•–ƒšǢ
‘ –Š‡”ƒ–‡•‹…Ž—†‹‰ϐŽ‘‘””ƒ–‡•™‹–Š„ƒ†•‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšǢ
‘ ƒ› •’‡…‹ƒŽ ”ƒ–‡ ‘” ”ƒ–‡• ˆ‘” ƒ •’‡…‹ϐ‹‡† ’‡”‹‘†ǡ –‘ ”ƒ‹•‡ ƒ††‹–‹‘ƒŽ ”‡•‘—”…‡• †—”‹‰ ƒ› ƒ–—”ƒŽ
…ƒŽƒ‹–›‘”†‹•ƒ•–‡”Ǣ
‘ •’‡…‹ƒŽ ’”‘˜‹•‹‘ ™‹–Š ”‡•’‡…– –‘ –Š‡ –ƒ–‡• ‘ˆ ”—ƒ…ŠƒŽ ”ƒ†‡•Šǡ ••ƒǡ ƒ— ƒ† ƒ•Š‹”ǡ
ƒ‹’—”ǡ‡‰ŠƒŽƒ›ƒǡ‹œ‘”ƒǡƒ‰ƒŽƒ†ǡ‹‹ǡ”‹’—”ƒǡ‹ƒ…ŠƒŽ”ƒ†‡•Šƒ†––ƒ”ƒŠƒ†Ǣƒ†
‘ ƒ›‘–Š‡”ƒ––‡””‡Žƒ–‹‰–‘–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšǡƒ•–Š‡‘—…‹Žƒ›†‡…‹†‡Ǣ
Ȉ Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒš‘—…‹Ž•ŠƒŽŽ”‡…‘‡†–Š‡†ƒ–‡‘™Š‹…Š–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒš„‡
Ž‡˜‹‡†‘’‡–”‘Ž‡—…”—†‡ǡŠ‹‰Š•’‡‡††‹‡•‡Žǡ‘–‘”•’‹”‹–ȋ…‘‘Ž›‘™ƒ•’‡–”‘ŽȌǡƒ–—”ƒŽ‰ƒ•ƒ†
ƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡ŽǤ
Ȉ Š‹Ž‡ †‹•…Šƒ”‰‹‰ –Š‡ ˆ—…–‹‘• …‘ˆ‡””‡† „› –Š‹• ƒ”–‹…Ž‡ǡ –Š‡
‘‘†• ƒ† ‡”˜‹…‡• ƒš ‘—…‹Ž •ŠƒŽŽ „‡
‰—‹†‡†„›–Š‡‡‡†ˆ‘”ƒŠƒ”‘‹œ‡†•–”—…–—”‡‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšƒ†ˆ‘”–Š‡†‡˜‡Ž‘’‡–‘ˆƒ
Šƒ”‘‹œ‡†ƒ–‹‘ƒŽƒ”‡–ˆ‘”‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ
Ȉ ‡ǦŠƒŽˆ ‘ˆ –Š‡ –‘–ƒŽ —„‡” ‘ˆ ‡„‡”• ‘ˆ –Š‡
‘‘†• ƒ† ‡”˜‹…‡• ƒš ‘—…‹Ž •ŠƒŽŽ …‘•–‹–—–‡ –Š‡
“—‘”—ƒ–‹–•‡‡–‹‰•Ǥ
 620 Lesson 11 Ȉ EP-TL

POWER TO REMOVE DIFFICULTIES

‡…–‹‘ʹͲ‰‹˜‡•’‘™‡”•–‘–Š‡”‡•‹†‡––‘”‡‘˜‡†‹ˆϐ‹…—Ž–‹‡•Ǥˆƒ›†‹ˆϐ‹…—Ž–›ƒ”‹•‡•‹‰‹˜‹‰‡ˆˆ‡…––‘–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‡‘•–‹–—–‹‘ƒ•ƒ‡†‡†„›–Š‹•…–ȋ‹…Ž—†‹‰ƒ›†‹ˆϐ‹…—Ž–›‹”‡Žƒ–‹‘–‘–Š‡–”ƒ•‹–‹‘ˆ”‘–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‡‘•–‹–—–‹‘ƒ•–Š‡›•–‘‘†‹‡†‹ƒ–‡Ž›„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆƒ••‡–‘ˆ–Š‡”‡•‹†‡––‘–Š‹•…––‘–Š‡’”‘˜‹•‹‘•
‘ˆ –Š‡ ‘•–‹–—–‹‘• ƒ• ƒ‡†‡† „› –Š‹• …–Ȍǡ –Š‡ ”‡•‹†‡– ƒ›ǡ „› ‘”†‡”ǡ ƒ‡ •—…Š ’”‘˜‹•‹‘•ǡ ‹…Ž—†‹‰ ƒ›
ƒ†ƒ’–ƒ–‹‘‘”‘†‹ϐ‹…ƒ–‹‘‘ˆƒ›’”‘˜‹•‹‘‘ˆ–Š‡‘•–‹–—–‹‘ƒ•ƒ‡†‡†„›–Š‹•…–‘”Žƒ™ǡƒ•ƒ’’‡ƒ”–‘–Š‡
”‡•‹†‡––‘„‡‡…‡••ƒ”›‘”‡š’‡†‹‡–ˆ‘”–Š‡’—”’‘•‡‘ˆ”‡‘˜‹‰–Š‡†‹ˆϐ‹…—Ž–›Ǥ‘•—…Š‘”†‡”•ŠƒŽŽ„‡ƒ†‡ƒˆ–‡”
–Š‡‡š’‹”›‘ˆ–Š”‡‡›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆ•—…Šƒ••‡–Ǥ˜‡”›‘”†‡”•ŠƒŽŽǡƒ••‘‘ƒ•ƒ›„‡ƒˆ–‡”‹–‹•ƒ†‡ǡ„‡Žƒ‹†
„‡ˆ‘”‡‡ƒ…Š‘—•‡‘ˆƒ”Ž‹ƒ‡–Ǥ

List of insertions done in the Constitution of India

INDIRECT TAXES IN INDIA – AN OVERVIEW

–Š‡‡”•–™Š‹Ž‡”‡‰‹‡‘ˆ‹†‹”‡…––ƒš‡•ǡ‰‘‘†•™‡”‡•—„Œ‡…––‘–ƒš„›„‘–Š‹Ǥ‡Ǥǡ–Š‡‡–”‡ƒ•™‡ŽŽƒ•–Š‡–ƒ–‡•Ǥ’
–‘ –Š‡ ƒ—ˆƒ…–—”‡ •–ƒ‰‡ǡ ‡–”ƒŽ
‘˜‡”‡– ™ƒ• …‘ŽŽ‡…–‹‰ ‡š…‹•‡ †—–› ‡š…‡’– ˆ‘” ‘ ƒŽ…‘Š‘Ž ˆ‘” Š—ƒ
…‘•—’–‹‘ǡ ƒ”…‘–‹…• ƒ† ƒ”…‘–‹… †”—‰•ǡ ‡–…Ǥ ‘ ™Š‹…Š •–ƒ–‡ ‡š…‹•‡ ™ƒ• „‡‹‰ ‹’‘•‡†Ǥ ˜‡ ƒˆ–‡” –Š‡
‹’Ž‡‡–ƒ–‹‘‘ˆ
ǡ•–ƒ–‡•…‘–‹—‡–‘Ž‡˜›–ƒš‘ˆ•–ƒ–‡‡š…‹•‡†—–›ƒ†•ƒŽ‡•–ƒš‘Ž‹“—‘”•Ǥ–ƒ–‡•Šƒ˜‡‡š…Ž—•‹˜‡
’‘™‡”•–‘…‘ŽŽ‡…––ƒš‘„‘–Š‹–”ƒ•–ƒ–‡ƒ†‹–‡”•–ƒ–‡•ƒŽ‡•Ǥ
‡”˜‹…‡–ƒš™ƒ•Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†„›‹‘
‘˜‡”‡–‡š…Ž—•‹˜‡Ž›ǤŠ‡”‡™‡”‡’Ž‡–›‘ˆ–ƒš‡•…‘ŽŽ‡…–‡†„›–ƒ–‡
‰‘˜‡”‡–•‘˜ƒ”‹‘—••—„Œ‡…–•Ž‹‡Ž—š—”›–ƒšǡ’—”…Šƒ•‡–ƒšǡ‡–”›–ƒšƒ†•‘‘Ǥ
‹ŽŽͳͻͺ͹ǡ‡–”ƒŽš…‹•‡™ƒ•…‘ŽŽ‡…–‡†‘–Š‡‰”‘••˜ƒŽ—‡™Š‹…Š”‡•—Ž–‡†‹…ƒ•…ƒ†‹‰‡ˆˆ‡…–Ǥ•…Š‡‡™ƒ•
‹–”‘†—…‡†–‘”‡†—…‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–Ǥ…Š‡‡™ƒ•”‡’Žƒ…‡†„›”‡†‹–•…Š‡‡™ƒ•‡š–‡†‡†–‘
•‡”˜‹…‡–ƒšŽƒ–‡”‘Ǥ —”–Š‡”ǡ‡–”‡™ƒ•ƒ„Ž‡–‘…‘˜‹…‡–Š‡•–ƒ–‡•–‘‹–”‘†—…‡‘Ž‘…ƒŽ•ƒŽ‡•ǤŠ‡’”‘…‡••
…‘–‹—‡†ˆ”‘ʹͲͲ͵–‘ʹͲͲͺ„›™Š‹…ŠƒŽŽ–Š‡•–ƒ–‡•‹†‹ƒ„‡…ƒ‡•–ƒ–‡•ǤʹͲͲ͵ǡƒ”›ƒƒ™ƒ•–Š‡‘Ž›•–ƒ–‡
–‘‹–”‘†—…‡ǤʹͲͲͷǡƒŒ‘”‹–›‘ˆ–Š‡•–ƒ–‡•‹–”‘†—…‡†ǡ–Š‡”‡•–ˆ‘ŽŽ‘™‡†‹–Š‡Žƒ–‡”›‡ƒ”•Ǥ
 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 621

The following diagram summarizes the erstwhile indirect taxation in India:

Tax Collection VII Schedule-

Tax Tax Law Taxable Event Constitution of
authority
India

Customs Act,
Import/ export Central Govt. 83
1962

Central Excise Manufacture/

Central Excise Central Govt. 84
Act, 1944

Central Sales Central sales

Tax tax Act, 1956
Interstate sale State Govt . 92A

Finance Act,
Service Tax Taxable service Central Govt. 97
1994

Sale within the

VAT State VAT Act State Govt. 54 of state list
state

Basic summary of Goods & Services Tax

Ȉ Š‡ϐ‹”•–…‘—–”›–‘‹’Ž‡‡–
‘‘†•Ƭ‡”˜‹…‡•ƒš™ƒ• ”ƒ…‡‹ƒ•‡ƒ”Ž›ƒ•ͳͻͷͶǤ
Ȉ †‹ƒŠƒ•–Š‡Š‹‰Š‡•––ƒš•Žƒ„‹–Š‡™‘”Ž†‹Ǥ‡ǤǡʹͺΨǡ‡š–‘Ž›–‘”‰‡–‹ƒ™Š‹…Š‹•ƒ–ʹ͹ΨǤ
Ȉ Ž‘•–ͳ͸Ͳ…‘—–”‹‡•ƒ”‘—†–Š‡™‘”Ž†ˆ‘ŽŽ‘™–Š‹••…Š‡‡‘ˆ‹†‹”‡…––ƒšƒ–‹‘Ǥ
Ȉ †‹ƒ
Šƒ•ˆ‘—””ƒ–‡•–”—…–—”‡ǡ˜‹œǤͷΨǡͳʹΨǡͳͺΨƒ†ʹͺΨ™‹–Š…‡••‘•‹‰‘‘†•ƒ†Ž—š—”›–‡•Ǥ
Ȉ Š‡”‡‹•ƒ•’‡…‹ƒŽ”ƒ–‡‘ˆ͵Ψ‘’”‡…‹‘—•‡–ƒŽ•Ž‹‡‰‘Ž†Ǥ
Ȉ
‹•…‘˜‡”‡†—†‡”ϐ‹˜‡Ž‡‰‹•Žƒ–‹‘•‹Ǥ‡Ǥǡ‡–”ƒŽ
…–ǡ–ƒ–‡
…–ǡ–‡‰”ƒ–‡†
…–ǡ‹‘‡””‹–‘”›

…–ƒ†
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–Ǥ
Ȉ –‡‰”ƒ–‡†
ǡ‘’‡•ƒ–‹‘‡••ƒ†‡–”ƒŽ
ƒ”‡…Šƒ”‰‡†„›‡–”ƒŽ
‘˜‡”‡–Ǥ
Ȉ ŽŽ–ƒšƒ–‹‘’‘Ž‹…‹‡•ƒ†–Š‡‹”‹’Ž‡‡–ƒ–‹‘ƒ”‡„ƒ•‡†‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹Ž
Ȉ Š‡–ƒšƒ„Ž‡‡˜‡–—†‡”
‹••—’’Ž›Ǥ
Ȉ
‹ŽŽ™ƒ•‹–”‘†—…‡†—†‡”ͳʹʹnd‘•–‹–—–‹‘ƒŽ‡†‡–‹ŽŽǡ„—–’ƒ••‡†—†‡”ͳͲͳ•–‡†‡–
…–ǡʹͲͳ͸Ǥ
Ȉ ••ƒ™ƒ•–Š‡ϐ‹”•–•–ƒ–‡–‘”ƒ–‹ˆ›
‹ŽŽ„—–‡Žƒ‰ƒƒ™ƒ•–Š‡ϐ‹”•–•–ƒ–‡–‘’ƒ••–ƒ–‡
‹ŽŽǤ
Ȉ
‘—…‹Ž™ƒ•…‘•–‹–—–‡†™‹–Š‹–•Š‡ƒ†“—ƒ”–‡”•‹‡ŽŠ‹ǤŠ‡‹‘ ‹ƒ…‡‹‹•–‡”‹•–Š‡Šƒ‹”’‡”•‘Ǥ
Ȉ –ƒ–‡ ‹ƒ…‡‹‹•–‡”•ƒ”‡‡„‡”•‘ˆ
‘—…‹ŽǤ
Ȉ ͳst —Ž›‹•‘„•‡”˜‡†ƒ•–Š‡
†ƒ›Ǥ
Ȉ Š‡–Š”‡•Š‘Ž†Ž‹‹–ˆ‘”•ƒŽ‡‘ˆ
‘‘†•—†‡”
‹••ǤͶͲƒŠ•ǡˆ‘”•‘‡•’‡…‹ƒŽ…ƒ–‡‰‘”›•–ƒ–‡•‹–‹••ǤʹͲ
ƒŠ•Ǥ
Ȉ Š‡”‡‹•ƒ•’‡…‹ƒŽ’—”’‘•‡˜‡Š‹…Ž‡…ƒŽŽ‡†
™Š‹…Š…ƒ–‡”•–Š‡‡‡†•‘ˆ
Ǥ
…‘‡•—†‡”‘’ƒ‹‡•
 622 Lesson 11 Ȉ EP-TL

…–ǡ ʹͲͳ͵ ™‹–Š …‘„‹‡† •–ƒ‡ ‘ˆ ‡–”ƒŽ ƒ† –ƒ–‡

‘˜‡”‡–• ‹• ͶͻΨǤ Š‡ ”‡•– ‹• …‘–”‹„—–‡† „› 
‹ƒ…‡™‹–ŠͳͳΨƒ†ƒǡ ǡ ƒƒ†–”ƒ–‡‰‹…˜‡•–‡–‘”’‘”ƒ–‹‘™‹–ŠͳͲΨ
‡ƒ…ŠǤ
Ȉ Š‡
 ‘—…‹Ž ”‡…‘‡†‡† ƒ —‹ˆ‘” ’‘Ž‹…› ‘ ‡Ǧ™ƒ› „‹ŽŽ ™Š‹…Š ‹• „‡‹‰ ‹’Ž‡‡–‡† ƒŽŽ ‘˜‡” –Š‡
…‘—–”›ǤŠ‹•–‘–ƒŽŽ›‡Ž‹‹ƒ–‡•–Š‡…Š‡…’‘•–•›•–‡„”‡ƒ‹‰–Š‡‡–”›„ƒ””‹‡”•ƒ†”‡†—…‹‰„‘––Ž‡‡…•
‹–”ƒ•’‘”–ƒ–‹‘Ǥ
Ȉ
‘—…‹ŽŠƒ•ƒŽ•‘”‡˜‹‡™‡†–Š‡”ƒ–‡•–”—…–—”‡‘ˆ
‘‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ–ƒŽ•‘”‡…‘‡†‡†”‡†—…–‹‘
‘ˆ”ƒ–‡•‘…ƒ•‡•‘ˆ‡”‹–Ǥ
PRE GST TAX STRUCTURE & DEFICIENCIES
Š‡”‡ƒ”‡˜ƒ”‹‘—•‡…‘‘‹…ˆƒ…–‘”•‹–‡”ƒŽƒ•™‡ŽŽƒ•‡š–‡”ƒŽ†—‡–‘™Š‹…Š”‡ˆ‘”•‹–ƒš•›•–‡„‡…‘‡‡…‡••ƒ”›Ǥ
••—‡‘ˆ”‡ˆ‘”•‹†‹ƒ–ƒš•›•–‡Šƒ•ƒŽ™ƒ›•„‡‡ƒ’”‹‘”‹–›ˆ‘”ƒŽŽ–Š‡ƒ†‹‹•–”ƒ–‹˜‡ƒ…Š‹‡”›‡˜‡ƒ––Š‡
Š‹‰Š‡•–’‘Ž‹…›ˆ‘”—•‹–Š‡…‘—–”›Ǥ–‡‰”ƒ–‹‘‘ˆ†‘‡•–‹…‡…‘‘›™‹–Š™‘”Ž†‡…‘‘›ƒ‡•‹–†‡•‹”ƒ„Ž‡Ǥ
”‡˜‹‘—••–”—…–—”‡‘ˆ‹†‹”‡…––ƒšƒ–‹‘‹†‹ƒŠƒ†•‘‡…ŠƒŽŽ‡‰‡•™Š‹…Š‡‡†‡†–‘„‡ƒ††”‡••‡†Ǥ‘‡‘ˆ–Š‡
…ŠƒŽŽ‡‰‡•—†‡”–Š‡’”‡˜‹‘—•‹†‹”‡…––ƒš•–”—…–—”‡…‘—Ž†„‡ƒ––”‹„—–‡†–‘ǣ
Ȉ ‡–”ƒŽš…‹•‡™Š‡”‡‹–Š‡”‡™‡”‡˜ƒ”‹ƒ„Ž‡”ƒ–‡•—†‡”š…‹•‡—–›•—…Šƒ•ʹΨ™‹–Š‘—–ǡ͸ΨǡͳͲΨǡ
ͳͺΨǡʹͶΨǡʹ͹Ψǡ…‘—’Ž‡†™‹–Š—Ž–‹’Ž‡˜ƒŽ—ƒ–‹‘•›•–‡ƒ†˜ƒ”‹‘—•‡š‡’–‹‘•Ǥ
Ȉ ™Š‡”‡†‹ˆˆ‡”‡–•–ƒ–‡•™‡”‡…Šƒ”‰‹‰ƒ–†‹ˆˆ‡”‡–”ƒ–‡•ǡ™Š‹…Š™‡”‡”‡•—Ž–‹‰‹‹„ƒŽƒ…‡‘ˆ–”ƒ†‡
„‡–™‡‡–Š‡•–ƒ–‡•Ǥ
Ȉ Ž•‘ǡ—†‡”ǡ–Š‡”‡™ƒ•ƒŽƒ…‘ˆ—‹ˆ‘”‹–›‹–‡”•‘ˆ”‡‰‹•–”ƒ–‹‘ǡ†—‡†ƒ–‡‘ˆ’ƒ›‡–ǡ”‡–—”ϐ‹Ž‹‰
ƒ••‡••‡– ’”‘…‡†—”‡•ǡ ”‡ˆ—† ‡…Šƒ‹•ǡ ƒ’’‡ŽŽƒ–‡ ’”‘…‡•• ‡–…Ǥǡ –Š—• …‘’Ž‹…ƒ–‹‰ –Š‡ …‘’Ž‹ƒ…‡
‡…Šƒ‹•Ǥ ‘”‡šƒ’Ž‡ǣ„—•‹‡••‡•–ƒ„Ž‹•Š‡–Šƒ˜‹‰‘ˆϐ‹…‡•‹†‹ˆˆ‡”‡–•–ƒ–‡•™‡”‡”‡“—‹”‡†–‘ˆ‘ŽŽ‘™
–Š‡Žƒ™•‘ˆ–Š‡”‡•’‡…–‹˜‡•–ƒ–‡•Ǥ
Ȉ ”‡•’‡…–‘ˆ–ƒšƒ–‹‘‘ˆ‰‘‘†•ǡ™ƒ•…‘ϐ‹‡†–‘–Š‡ƒ—ˆƒ…–—”‹‰•–ƒ‰‡ƒ††‹†‘–‡š–‡†–‘–Š‡
†‹•–”‹„—–‹‘…Šƒ‹„‡›‘†–Š‡ˆƒ…–‘”›‰ƒ–‡Ǥ••—…Šǡ’ƒ‹†‘‰‘‘†•…‘—Ž†‘–„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•––ƒ–‡
’ƒ›ƒ„Ž‡‘•—„•‡“—‡–•ƒŽ‡‘ˆ‰‘‘†•ǤŠ‹•™ƒ•–”—‡„‘–Šˆ‘”…‘ŽŽ‡…–‡†‘†‘‡•–‹…ƒŽŽ›’”‘†—…‡†
‰‘‘†•ƒ•™‡ŽŽƒ•–Šƒ–…‘ŽŽ‡…–‡†ƒ•ƒ††‹–‹‘ƒŽ†—–›‘ˆ…—•–‘•‘‹’‘”–‡†‰‘‘†•Ǥ
Ȉ  …‘’”‹•‡† ‘ˆ •‡˜‡”ƒŽ …‘’‘‡–• ‹ –Š‡ ƒ–—”‡ ‘ˆ …‡••‡• ƒ† •—”…Šƒ”‰‡• •—…Š ƒ• –Š‡ ƒ–‹‘ƒŽ
ƒŽƒ‹–›‘–‹‰‡…›—–›ȋȌǡ‡†—…ƒ–‹‘ƒ†•‡…‘†ƒ”›ƒ†Š‹‰Š‡”‡†—…ƒ–‹‘…‡••ǡƒ††‹–‹‘ƒŽ†—–›‘ˆ
‡š…‹•‡‘–‘„ƒ……‘ƒ†–‘„ƒ……‘’”‘†—…–•‡–…ǤŠ‹•—Ž–‹’Ž‹…‹–›‘ˆ†—–‹‡•…‘’Ž‹…ƒ–‡†–Š‡–ƒš•–”—…–—”‡ƒ†‘ˆ–‡
—•‡†–‘‘„•–”—…––Š‡•‘‘–ŠϐŽ‘™‘ˆ–ƒš…”‡†‹–Ǥ
Ȉ Š‹Ž‡ ‹’—– –ƒš …”‡†‹– ‘ˆ  ‘” ƒ††‹–‹‘ƒŽ †—–› ‘ˆ …—•–‘• ’ƒ‹† ‘ ‰‘‘†• ™ƒ• ƒ˜ƒ‹Žƒ„Ž‡ –‘ •‡”˜‹…‡
’”‘˜‹†‡”•’ƒ›‹‰‡”˜‹…‡ƒšǡ–Š‡›™‡”‡—ƒ„Ž‡–‘‡—–”ƒŽ‹œ‡–Š‡–ƒ–‡‘”‘–Š‡”–ƒ–‡–ƒš‡•’ƒ‹†‘–Š‡‹”
’—”…Šƒ•‡‘ˆ‰‘‘†•Ǥ
Ȉ –ƒ–‡™ƒ•’ƒ›ƒ„Ž‡‘–Š‡˜ƒŽ—‡‘ˆ‰‘‘†•‹…Ž—•‹˜‡‘ˆ’ƒ‹†ƒ––Š‡ƒ—ˆƒ…–—”‹‰•–ƒ‰‡ƒ†–Š—•–Š‡
Ž‹ƒ„‹Ž‹–›‘ˆƒ†‡ƒŽ‡”ƒŽ™ƒ›•—•‡†–‘‰‡–‹ϐŽƒ–‡†™‹–Š‘—–…‘’‡•ƒ–‘”›•‡–Ǧ‘ˆˆǤ
Ȉ –‡”Ǧ–ƒ–‡•ƒŽ‡‘ˆ‰‘‘†•™ƒ•Ž‹ƒ„Ž‡–‘–Š‡‡–”ƒŽƒŽ‡•ƒšȋȌŽ‡˜‹‡†„›–Š‡‡–”‡ƒ†…‘ŽŽ‡…–‡†„›–Š‡
•–ƒ–‡•ǤŠ‹•™ƒ•ƒ‘”‹‰‹Ǧ„ƒ•‡†–ƒšƒ†…‘—Ž†‘–„‡•‡–Ǧ‘ˆˆƒ‰ƒ‹•–‹ƒ›•‹–—ƒ–‹‘•Ǥ
Ȉ –ƒ–‡ƒ†™‡”‡‘–†‹”‡…–Ž›ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡‹’‘”–‘ˆ‰‘‘†•‘™Š‹…Š’‡…‹ƒŽ††‹–‹‘ƒŽ—–‹‡•
ȋȌ ‘ˆ …—•–‘• ™‡”‡ Ž‡˜‹‡† ƒ– ƒ —‹ˆ‘” ”ƒ–‡ ‘ˆ ͶΨ „› –Š‡ ‡–”‡Ǥ ’—– –ƒš …”‡†‹– ‘ˆ •—…Š †—–‹‡• ™ƒ•
ƒ˜ƒ‹Žƒ„Ž‡‘Ž›–‘–Š‘•‡‡–‹–‹‡•™Š‘™‡”‡ƒ—ˆƒ…–—”‹‰‡š…‹•ƒ„Ž‡‰‘‘†•Ǥ–Š‡”‹’‘”–‡”•Šƒ†–‘…Žƒ‹”‡ˆ—†
‘ˆ–Š‹•†—–›ƒ•ƒ†™Š‡–Š‡›’ƒ›‘•—„•‡“—‡–•ƒŽ‡•Ǥ
Ȉ  †‡ƒŽ‡”• ™‡”‡ —ƒ„Ž‡ –‘ •‡–Ǧ‘ˆˆ ƒ› ‡”˜‹…‡ ƒš –Šƒ– –Š‡› ’ƒ‹† ‘ ’”‘…—”‡‡– ‘ˆ –ƒšƒ„Ž‡ ‹’—–
•‡”˜‹…‡•Ǥ
Ȉ –ƒ–‡
‘˜‡”‡–•ƒŽ•‘Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†ƒ˜ƒ”‹‡–›‘ˆ‘–Š‡”‹†‹”‡…––ƒš‡••—…Šƒ•Ž—š—”›–ƒšǡ‡–‡”–ƒ‹‡–
–ƒšǡ‡–”›–ƒš‡–…Ǥˆ‘”™Š‹…Š‘•‡–Ǧ‘ˆˆ™ƒ•ƒ˜ƒ‹Žƒ„Ž‡Ǥ
 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 623

CENTRAL TAXES
š…‹•‡ǡ•‡”˜‹…‡–ƒš‡–…Ǥ

STATE TAXES LOCAL BODY

ƒŽ—‡††‡†ƒšǡ TAXES
‡–”ƒŽƒŽ‡•ƒš ”‘’‡”–›–ƒšǡ
‡–…Ǥ —‹…‹’ƒŽ–ƒš‡•‡–…Ǥ

‘ŽŽ‘™‹‰…ƒ„‡•—ƒ”‹œ‡†ƒ•ƒŒ‘””‡ƒ•‘•ˆ‘”‹’Ž‡‡–ƒ–‹‘‘ˆƒ‡™‹†‹”‡…––ƒš”‡‰‹‡ǣ
ȋƒȌ Plethora of taxesǣŠ‡”‡™‡”‡˜ƒ”‹‘—•‹†‹”‡…––ƒš‡•‹†‹ƒ‹‡š‹•–‡…‡’”‹‘”–‘‹–”‘†—…–‹‘‘ˆ
ǤŠ‡”‡
™ƒ•ƒ–Š”‡‡–‹‡”•›•–‡‘ˆ–ƒš…‘ŽŽ‡…–‹‘‹†‹ƒǣ
ȋ‹Ȍ ƒš‡•Ž‡˜‹‡†„›‡–”ƒŽ
‘˜‡”‡–‹Ǥ‡Ǥ—•–‘•—–‹‡•ǡ‡–”ƒŽš…‹•‡—–‹‡•ǡ‡”˜‹…‡–ƒšǡƒ††‹–‹‘ƒŽ
†—–‹‡•‘ˆš…‹•‡‡–…Ǥ
ȋ‹‹Ȍ –ƒ–‡š…‹•‡ǡǡǡ–”›–ƒšǡ‡–‡”–ƒ‹‡––ƒšǡŽ—š—”›–ƒš‡–…Ǥƒ”‡Ž‡˜‹‡†„›–Š‡–ƒ–‡
‘˜‡”‡–•Ǥ
ȋ‹‹‹Ȍ ‘…ƒŽ‘†‹‡•Ž‡˜›–ƒš‡•Ž‹‡ǣ‡–‡”–ƒ‹‡––ƒšǡ…–”‘‹ǡ’”‘’‡”–›–ƒšǡŽ‘…ƒŽ„‘†›–ƒšǡ‡–…Ǥ
ȋ„Ȍ Plenty of Taxable Eventsǣƒš‡•™‡”‡Ž‡˜‹‡†ƒ–˜ƒ”‹‘—••–ƒ‰‡•‘˜ƒ”‹‘—•–ƒšƒ„Ž‡‡˜‡–•„›†‹ˆˆ‡”‡–ƒ—–Š‘”‹–‹‡•
‘–Š‡•ƒ‡•—„Œ‡…–ƒ––‡”‘”–”ƒ•ƒ…–‹‘Ǥ ‘”‡šƒ’Ž‡ǡš…‹•‡†—–›™ƒ•Ž‡˜‹‡†ƒ–…‡–”ƒŽŽ‡˜‡Ž‘ƒ—ˆƒ…–—”‡Ǥ
‡”˜‹…‡ –ƒš ™ƒ• Ž‡˜‹‡† ‘ –”ƒ•’‘”– ƒ† ‘–Š‡” ‹…‹†‡–ƒŽ •‡”˜‹…‡• ƒ‰ƒ‹ „› ‡–”ƒŽ
‘˜‡”‡–Ǥ ƒŽ‡• –ƒš
ȋȀȌ™ƒ•…‘ŽŽ‡…–‡†„›–Š‡–ƒ–‡
‘˜‡”‡–‘•ƒŽ‡Ǥ–”›–ƒš™ƒ•…‘ŽŽ‡…–‡†„›–ƒ–‡
‘˜‡”‡–‘
–Š‡ ‡–”› ‘ˆ ‰‘‘†• ‹ –Š‡ •–ƒ–‡Ǥ …–”‘‹ ™ƒ• …‘ŽŽ‡…–‡† „› —‹…‹’ƒŽ ƒ—–Š‘”‹–‹‡• ™Š‡ –Š‡ ‰‘‘†• ‡–‡” –Š‡
—‹…‹’ƒŽƒ”‡ƒǤŠ‡•ƒ‡‰‘‘†•™‡”‡„‡‹‰•—„Œ‡…–‡†–‘˜ƒ”‹‡–‹‡•‘ˆ–ƒš‡•‘˜ƒ”‹‡–›‘ˆ–ƒšƒ„Ž‡‡˜‡–•Ž‹‡
‡–”›ǡ–”ƒ•’‘”–ǡƒ—ˆƒ…–—”‡ǡ•ƒŽ‡ƒ†•‘‘Ǥ‘•–‘ˆ–Š‡–ƒš‡•™‡”‡Šƒ˜‹‰…ƒ•…ƒ†‹‰‡ˆˆ‡…–ƒ•–Š‡”‡™ƒ•‘
„‡‡ϐ‹–‘ˆ‹’—––ƒš…”‡†‹–Ǥ
ȋ…Ȍ Double taxationǣƒ•‹‰Ž‡–”ƒ•ƒ…–‹‘ǡ—Ž–‹’Ž‡–ƒš‡•™‡”‡„‡‹‰‹’‘•‡†ǡ‘ˆ–‡„›†‹ˆˆ‡”‡–ƒ—–Š‘”‹–‹‡•Ǥ
‘”‡Ǥ‰Ǥˆ‘”ƒ•–ƒ›‹ƒŠ‘–‡Ž‹‡ŽŠ‹ǡ›‘—Šƒ†–‘’ƒ›Ž—š—”›–ƒšƒ•™‡ŽŽƒ••‡”˜‹…‡–ƒšǤ‡”˜‹…‡–ƒš™ƒ•…‘ŽŽ‡…–‡†
„›‡–”ƒŽ
‘˜‡”‡–ƒ†ƒ’’Ž‹…ƒ„Ž‡Ž‘…ƒŽ–ƒš‡•„›–ƒ–‡
‘˜‡”‡–Ǥ
ȋ†Ȍ Multiplicity of compliancesǣ ƒ›‡– ‘ˆ –ƒš –‘ ˜ƒ”‹‘—• ƒ—–Š‘”‹–‹‡•ǡ †‹ˆˆ‡”‡– †—‡ †ƒ–‡•ǡ ƒ••‡••‡–ǡ ”‡ˆ—†
’”‘…‡••ƒ–˜ƒ”‹‘—•Ž‡˜‡Ž•ƒ†‡–Š‡–ƒšƒ–‹‘•›•–‡‘”‡…‘’Ž‡šƒ†Ž‡†–‘ƒ‹…”‡ƒ•‡‹…‘’Ž‹ƒ…‡…‘•–Ǥ
—”–Š‡”ǡ–Š‡”‡™ƒ•‹„—‹Ž–…ƒ•…ƒ†‹‰‡ˆˆ‡…–‘ˆ–ƒš‡•†—‡–‘ǣ
ȋ‹Ȍ Lack of Cross-utilization facility between goods and servicesǣƒš‡•’ƒ‹†‘’”‘…—”‡‡–‘ˆ‹’—–’—”…Šƒ•‡•
™‡”‡‘–ƒŽŽ‘™‡†–‘„‡•‡–‘ˆˆƒ‰ƒ‹•–‘—–’—––ƒš’ƒ›ƒ„Ž‡‘•‡”˜‹…‡•ƒ†˜‹…‡˜‡”•ƒǤ
ȋ‹‹Ȍ Non-availability of set off arrangement against other State or Central Government leviesǣ’ƒ‹†‹‘‡•–ƒ–‡
™ƒ•‘–ƒ˜ƒ‹Žƒ„Ž‡ƒ••‡–‘ˆˆƒ‰ƒ‹•–•ƒŽ‡•–ƒš’ƒ›ƒ„Ž‡‹ƒ‘–Š‡”•–ƒ–‡Ǥ‹‹Žƒ”Ž›ǡ…‡–”ƒŽ–ƒš‡•™‡”‡‘–ƒ˜ƒ‹Žƒ„Ž‡
ƒ•…”‡†‹––‘•‡–‘ˆˆƒ‰ƒ‹•––Š‡–ƒš‡•’ƒ›ƒ„Ž‡ƒ––Š‡•–ƒ–‡Ž‡˜‡Žƒ†˜‹…‡˜‡”•ƒǤǤ‰Ǥǡš…‹•‡†—–›ƒ†•‡”˜‹…‡–ƒš
’ƒ‹†‘‰‘‘†•…‘—Ž†‘–„‡—•‡†–‘’ƒ›‘”Ǥ–Š‡•ƒ‡™ƒ›ǡ”‡†‹–ȋȌ…‘—Ž†‘–„‡—•‡†–‘’ƒ›
‡š…‹•‡†—–›‘”•‡”˜‹…‡–ƒšǤ
 624 Lesson 11 Ȉ EP-TL

Plethora of
Taxes

No inter
state-Centre Numerable
set off Taxable Events

Problems of
Previous
Regime

No cross
Double
utilisation
Taxation
between goods
& services

Multiplicity of
Compliances

ADMINISTRATION OF INDIRECT TAXATION IN INDIA

Framework of GST
†‹ƒ‹•ƒˆ‡†‡”ƒŽ…‘—–”›™Š‡”‡„‘–Š–Š‡‡–”‡ƒ†–Š‡•–ƒ–‡•Šƒ˜‡„‡‡ƒ••‹‰‡†–Š‡’‘™‡”•–‘Ž‡˜›ƒ†…‘ŽŽ‡…–
–ƒš‡•–Š”‘—‰Š”‡•’‡…–‹˜‡Ž‡‰‹•Žƒ–‹‘•Ǥ‘–Š–Š‡Ž‡˜‡Ž•‘ˆ
‘˜‡”‡–‹Ǥ‡Ǥǡƒ–‡–”‡ƒ†ƒ––Š‡–ƒ–‡Ž‡˜‡ŽǡŠƒ˜‡†‹•–‹…–
”‡•’‘•‹„‹Ž‹–‹‡•–‘’‡”ˆ‘”ƒ……‘”†‹‰–‘–Š‡†‹˜‹•‹‘‘ˆ’‘™‡”•’”‡•…”‹„‡†‹–Š‡‘•–‹–—–‹‘Ǥ†—ƒŽ
‹•–Š—•
‹’Ž‡‡–‡†‡‡’‹‰‹‹†–Š‡‘•–‹–—–‹‘ƒŽ”‡“—‹”‡‡–‘ˆϐ‹•…ƒŽˆ‡†‡”ƒŽ‹•Ǥ
Ž‘‰™‹–Š–Š‡ƒ‡†‡–‹–Š‡‘•–‹–—–‹‘ǡ–‘‡’‘™‡”–Š‡‡–”‡ƒ†–Š‡•–ƒ–‡•–‘Ž‡˜›ƒ†…‘ŽŽ‡…––Š‡
ǡ
ˆ‘—”Ž‡‰‹•Žƒ–‹‘•™‡”‡‰‹˜‡ƒ••‡–„›–Š‡”‡•‹†‡–‘’”‹ŽͳʹǡʹͲͳ͹ǡ™Š‹…Š‹…Ž—†‡ǣ
Ȉ Š‡‡–”ƒŽ
…–ǡʹͲͳ͹Ǣ
Ȉ Š‡–‡‰”ƒ–‡†
…–ǡʹͲͳ͹Ǣ
Ȉ Š‡
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹Ǣƒ†
Ȉ Š‡‹‘‡””‹–‘”›
…–ǡʹͲͳ͹Ǥ

Goods &
Services Tax

GST
Central GST Integrated GST Union Territory (Compensation to
Act, 2017 Act, 2017 GST Act, 2017 States) Act, 2017
 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 625

ADMINISTRATIVE MECHANISM AT THE CENTRAL LEVEL

‹‹•–”›‘ˆ ‹ƒ…‡

‡˜‡—‡‡’ƒ”–‡–

CBIC

‡‰‹‘•

‘‡•

‘‹••‹‘‡”ƒ–‡•

‹˜‹•‹‘•

AUTHORITY HEADED BY
‹‹•–”›‘ˆ ‹ƒ…‡ ‹‘ ‹ƒ…‡‹‹•–‡”
‡˜‡—‡‡’ƒ”–‡– ‡˜‡—‡‡…”‡–ƒ”›
ȋ‡–”ƒŽ‘ƒ”†‘ˆ†‹”‡…–ƒš‡•Ƭ—•–‘•Ȍ Šƒ‹”ƒƒ†‡„‡”•
‡‰‹‘• ”‹…‹’ƒŽŠ‹‡ˆ‘‹••‹‘‡”•
‘‡• Š‹‡ˆ‘‹••‹‘‡”•
‘‹••‹‘‡”ƒ–‡• ‘‹••‹‘‡”•Ȁ”‹…‹’ƒŽ‘‹••‹‘‡”•
‹˜‹•‹‘• ‹˜‹•‹‘ƒŽ‘ˆϐ‹…‡”•Ȁ‡’—–›‘‹••‹‘‡”‡–…Ǥ

‘—…‹Ž‹•–Š‡ƒ’‡š„‘†›ˆ‘”ƒ‹‰”‡…‘‡†ƒ–‹‘•‘˜ƒ”‹‘—•‹••—‡•”‡Žƒ–‹‰–‘’‘Ž‹…›ƒ‹‰ǡˆ‘”—Žƒ–‹‘
‘ˆ’”‹…‹’Ž‡•ǡ‹’Ž‡‡–ƒ–‹‘‘ˆ’‘Ž‹…‹‡•—†‡”
‘‘†•ƒ†‡”˜‹…‡•ƒš”‡‰‹‡Ǥ
†‹‹•–”ƒ–‹‘ƒ†”‘…‡†—”ƒŽ•’‡…–•‘ˆ
‘‘†•ƒ†‡”˜‹…‡•–ƒšƒ”‡ƒ†‹‹•–‡”‡†„›–Š‡‡–”ƒŽ‘ƒ”†‘ˆ†‹”‡…–
ƒš‡•Ƭ—•–‘•ȋȌ™Š‹…Š‹•—†‡”–Š‡…‘–”‘Ž‘ˆ–Š‡‡’ƒ”–‡–‘ˆ‡˜‡—‡ǡ‹‹•–”›‘ˆ ‹ƒ…‡Ǥ

EXISTING TAX STRUCTURE

Passage of GST in India

‘‘†•Ƭ‡”˜‹…‡•ƒš‹•’”‡˜ƒŽ‡–‹ƒŽ‘•–ͳ͸Ͳ…‘—–”‹‡•ƒ”‘—†–Š‡™‘”Ž†ƒ† ”ƒ…‡™ƒ•–Š‡ϐ‹”•–…‘—–”›–‘
‹–”‘†—…‡–Š‡•ƒ‡‹ͳͻͷͶǤŠ‡Œ‘—”‡›–‘‹–”‘†—…–‹‘‘ˆ
‹†‹ƒŠƒ•„‡‡Ž‘‰ƒ†‹•ƒ”‡•—Ž–‘ˆŽƒ”‰‡”•‡…–‹‘•‘ˆ
–Š‡•‘…‹‡–›ǡ’ƒ”–‹…—Žƒ”Ž›ǡ–”ƒ†‡ƒ†‹†—•–”›ƒ†–Š‡ˆ‘”‡‹‰‡•–ƒ„Ž‹•Š‡–•™Š‘Šƒ˜‡„—•‹‡••‹–‡”‡•–•‹†‹ƒǤ
‘ƒ††”‡••–Š‡ƒ‘ƒŽ‹‡•‹–Š‡’”‡˜‹‘—•†‹”‡…––ƒš•›•–‡ǡ–Š‡ƒŒ’ƒ›‡‡‰‘˜‡”‡–’”‘’‘•‡†…‘’”‡Š‡•‹˜‡
–ƒšƒ–‹‘‘‰‘‘†•ƒ†•‡”˜‹…‡•‹ —Ž›ͳ͹ǡʹͲͲͲǤ–‡–”—•–‡†–Š‡Œ‘„–‘ƒ…‘‹––‡‡•‡–—’ƒ†Š‡ƒ†‡†„›–Š‡–Š‡
‡•–‡‰ƒŽ ‹ƒ…‡‹‹•–‡”–‘†‡•‹‰ƒ
‘†‡ŽǤ
Š‡–Š‡
‘˜‡”‡–‘ˆ†‹ƒ•‡–—’–Š‡’‘™‡”‡†‘‹––‡‡‘ˆ–ƒ–‡ ‹ƒ…‡‹‹•–‡”•™‹–Š–Š‡‘ǯ„Ž‡–ƒ–‡
‹ƒ…‡‹‹•–‡”•‘ˆ‡•–‡‰ƒŽǡƒ”ƒ–ƒƒǡƒ†Š›ƒ”ƒ†‡•ŠǡƒŠƒ”ƒ•Š–”ƒǡ—Œƒ„ǡ––ƒ””ƒ†‡•Šǡ
—Œƒ”ƒ–ǡ‡ŽŠ‹
ƒ†‡‰ŠƒŽƒ›ƒƒ•‡„‡”•ǡ‹–Šƒ†–Š‡ˆ‘ŽŽ‘™‹‰‘„Œ‡…–‹˜‡•ǣ
Ȉ –‘‘‹–‘”–Š‡‹’Ž‡‡–ƒ–‹‘‘ˆ—‹ˆ‘”ϐŽ‘‘””ƒ–‡•‘ˆ•ƒŽ‡•–ƒš„›–ƒ–‡•ƒ†‹‘‡””‹–‘”‹‡•Ǣ
Ȉ –‘‘‹–‘”–Š‡’Šƒ•‹‰‘—–‘ˆ–Š‡•ƒŽ‡•Ǧ–ƒš„ƒ•‡†‹…‡–‹˜‡•…Š‡‡•Ǣ
 626 Lesson 11 Ȉ EP-TL

Ȉ –‘†‡…‹†‡‹Ž‡•–‘‡•ƒ†‡–Š‘†•‘ˆ–ƒ–‡•–‘•™‹–…Š‘˜‡”–‘Ǣƒ†
Ȉ –‘‘‹–‘””‡ˆ‘”•‹–Š‡‡–”ƒŽƒŽ‡•ƒš•›•–‡‡š‹•–‹‰‹–Š‡…‘—–”›Ǥ
—„•‡“—‡–Ž›ǡ‘ǯ„Ž‡–ƒ–‡ ‹ƒ…‡‹‹•–‡”•‘ˆ••ƒǡƒ‹Žƒ†—ǡ ƒ—Ƭƒ•Š‹”ǡ Šƒ”Šƒ†ƒ†ƒŒƒ•–Šƒ
™‡”‡ƒŽ•‘‘–‹ϐ‹‡†ƒ•–Š‡‡„‡”•‘ˆ–Š‡’‘™‡”‡†‘‹––‡‡Ǥ
 —‰—•– ͳʹǡ ʹͲͲͶǡ –Š‡
‘˜‡”‡– ‘ˆ †‹ƒ †‡…‹†‡† –‘ ”‡…‘•–‹–—–‡ –Š‡ ’‘™‡”‡† ‘‹––‡‡ ™‹–Š ƒŽŽ –Š‡
‘ǯ„Ž‡–ƒ–‡ ‹ƒ…‡Ȁƒšƒ–‹‘‹‹•–‡”•ƒ•‹–•‡„‡”•Ǥƒ–‡”‘ǡ‹–™ƒ•†‡…‹†‡†–‘”‡‰‹•–‡”–Š‡„‘†›ƒ•ƒ‘…‹‡–›
—†‡”–Š‡‘…‹‡–‹‡•‡‰‹•–”ƒ–‹‘…–ǡͳͺ͸ͲǤ
Šƒ•„‡‡‹–Š‡’‹’‡Ž‹‡ˆ‘”ƒŽ‘‰–‹‡ǡˆ‘”‹–•‹’Ž‡‡–ƒ–‹‘Ǥ
‡”‡‹•ƒ„”‹‡ˆϐŽƒ•Š„ƒ…‡–‹‘‹‰–Š‡‡›‹Ž‡•–‘‡•‘ˆ–Š‡Œ‘—”‡›‘ˆ
‹†‹ƒǣ
(i) 2003ǣŠ‡‡Žƒ”ƒ• ‘”…‡‘†‹”‡…–ƒšŠƒ†•—‰‰‡•–‡†ƒ…‘’”‡Š‡•‹˜‡
‘‘†•ƒ†‡”˜‹…‡•ƒš„ƒ•‡†
‘’”‹…‹’Ž‡Ǥ
(ii) February, 2007ǣƒ‘—…‡‡–™ƒ•ƒ†‡„›–Š‡–Š‡‘ǯ„Ž‡‹‘ ‹ƒ…‡‹‹•–‡”‹–Š‡‡–”ƒŽ
—†‰‡–ȋʹͲͲ͹ǦͲͺȌ–‘–Š‡‡ˆˆ‡…––Šƒ–
™‘—Ž†„‡‹–”‘†—…‡†™‹–Š‡ˆˆ‡…–ˆ”‘’”‹ŽͲͳǡʹͲͳͲǤ
(iii) September, 2009ǣ Š‡ ’‘™‡”‡† ‘‹––‡‡ ȋȌ †‡…‹†‡† –‘ …‘•–‹–—–‡ ƒ ‘”‹‰
”‘—’ …‘•‹•–‹‰ ‘ˆ
”‹…‹’ƒŽ‡…”‡–ƒ”‹‡•Ȁ‡…”‡–ƒ”‹‡•ȋ ‹ƒ…‡Ȁƒšƒ–‹‘Ȍƒ†‘‹••‹‘‡”•‘ˆ”ƒ†‡ƒš‡•‘ˆƒŽŽ–ƒ–‡•Ȁ•
–‘‰‹˜‡–Š‡‹””‡…‘‡†ƒ–‹‘•‘ǣ
Ȉ –Š‡…‘‘†‹–‹‡•ƒ†•‡”˜‹…‡•–Šƒ–•Š‘—Ž†„‡‡’–‹–Š‡‡š‡’–‡†Ž‹•–Ǣ
Ȉ –Š‡”—Ž‡•ƒ†’”‹…‹’Ž‡•‘ˆ–ƒš‹‰–Š‡–”ƒ•ƒ…–‹‘•‘ˆ•‡”˜‹…‡•‹…Ž—†‹‰–Š‡–”ƒ•ƒ…–‹‘•‹‹–‡”Ǧ–ƒ–‡
•‡”˜‹…‡•Ǣƒ†
Ȉ ϐ‹ƒŽ‹œƒ–‹‘‘ˆ–Š‡‘†‡Ž•—‰‰‡•–‡†ˆ‘”‹–‡”Ǧ•–ƒ–‡–”ƒ•ƒ…–‹‘Ȁ‘˜‡‡–‘ˆ‰‘‘†•‹…Ž—†‹‰•–‘…Ǣ
Ȉ –”ƒ•ˆ‡”•‹…‘•—Ž–ƒ–‹‘™‹–Š–Š‡–ƒ–‡ƒ‘ˆ†‹ƒƒ†•‘‡‘–Š‡”ƒ–‹‘ƒŽ‹œ‡†„ƒ•Ǥ

(iv) November, 2009ǣ ƒ•‡† ‘ ‹’—–• ˆ”‘

‘˜‡”‡–ȋ•Ȍ ‘ˆ ‡–”‡ ƒ† –ƒ–‡•ǡ ’‘™‡”‡† ‘‹––‡‡
”‡Ž‡ƒ•‡†‹–• ‹”•–‹•…—••‹‘ƒ’‡”‘
Ǥ
(v) March, 2011ǣ Š‡ ‘•–‹–—–‹‘ ȋ‡ —†”‡† ƒ† ‹ˆ–‡‡–Š ‡†‡–Ȍ ‹ŽŽǡ ʹͲͳͳ –‘ ‰‹˜‡ …‘…—””‡–
–ƒš‹‰’‘™‡”•–‘–Š‡‹‘ƒ†–ƒ–‡•™ƒ•‹–”‘†—…‡†‹‘ƒ„ŠƒǤŠ‡‹ŽŽ•—‰‰‡•–‡†–Š‡…”‡ƒ–‹‘‘ˆ
‘‘†•
ƒ†‡”˜‹…‡•ƒš‘—…‹Žƒ†ƒ
‘‘†•ƒ†‡”˜‹…‡•ƒš‹•’—–‡‡––Ž‡‡–—–Š‘”‹–›ǤŠ‡‹ŽŽ™ƒ•Žƒ’•‡†‹
ʹͲͳͶƒ†™ƒ•”‡’Žƒ…‡†™‹–Š–Š‡‘•–‹–—–‹‘ȋͳʹʹnd‡†‡–Ȍ‹ŽŽǡʹͲͳͶǤ
(vi) November, 2012ǣDz‘‹––‡‡‘
‡•‹‰dzǡ…‘•‹•–‹‰‘ˆ–Š‡‘ˆϐ‹…‹ƒŽ•‘ˆ–Š‡
‘˜‡”‡–‘ˆ†‹ƒǡ–ƒ–‡

‘˜‡”‡–•ƒ†’‘™‡”‡†‘‹––‡‡ȋȌ™ƒ•…‘•–‹–—–‡†Ǥ
(vii) January, 2013ǣŠ‡’‘™‡”‡†‘‹––‡‡†‡Ž‹„‡”ƒ–‡†‘–Š‡’”‘’‘•‡††‡•‹‰‹…Ž—†‹‰–Š‡‘•–‹–—–‹‘
ȋͳͳͷ–ŠȌ‡†‡–‹ŽŽƒ†•—„‹––‡†–Š‡”‡’‘”–Ǥƒ•‡†‘–Š‹•‡’‘”–ǡ–Š‡
Ȉ ”‡…‘‡†‡†…‡”–ƒ‹…Šƒ‰‡•‹–Š‡‘•–‹–—–‹‘‡†‡–‹ŽŽƒ††‡…‹†‡†–‘…‘•–‹–—–‡–Š”‡‡
Ȉ „‡Ž‘™‡–‹‘‡†‘‹––‡‡•‘ˆˆϐ‹…‡”•–‘†‹•…—••ƒ†‡’‘”–‘˜ƒ”‹‘—•ƒ•’‡…–•‘ˆ
ǣ
Ȉ ‘‹––‡‡‘Žƒ…‡‘ˆ—’’Ž›—Ž‡•ƒ†‡˜‡—‡‡—–”ƒŽƒ–‡•Ǣ
Ȉ ‘‹––‡‡‘†—ƒŽ…‘–”‘Žǡ–Š”‡•Š‘Ž†ƒ†‡š‡’–‹‘•Ǣ
Ȉ ‘‹––‡‡‘
ƒ†
‘‹’‘”–•Ǥ

(viii) March, 2013ǣ‘–ˆ‘”’”‘ϐ‹–ǡ‘Ǧ

‘˜‡”‡–ǡ’”‹˜ƒ–‡Ž‹‹–‡†…‘’ƒ›™ƒ•‹…‘”’‘”ƒ–‡†‹–Š‡ƒ‡‘ˆ

‘‘†•ƒ†‡”˜‹…‡•ƒš‡–™‘”ȋ
Ȍƒ••’‡…‹ƒŽ’—”’‘•‡˜‡Š‹…Ž‡•‡–—’„›–Š‡
‘˜‡”‡–’”‹ƒ”‹Ž›–‘
’”‘˜‹†‡  ‹ˆ”ƒ•–”—…–—”‡ ƒ† •‡”˜‹…‡• –‘ –Š‡ ‡–”ƒŽ ƒ† –ƒ–‡
‘˜‡”‡–ȋ•Ȍǡ –ƒš ’ƒ›‡”• ƒ† ‘–Š‡”
•–ƒ‡Š‘Ž†‡”•ˆ‘”‹’Ž‡‡–ƒ–‹‘‘ˆ
Ǥ
(ix) August, 2013ǣ Š‡ ƒ”Ž‹ƒ‡–ƒ”› –ƒ†‹‰ ‘‹––‡‡ •—„‹––‡† ‹–• ‡’‘”– –‘ –Š‡ ‘ ƒ„ŠƒǤ Š‡
”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡’‘™‡”‡†‘‹––‡‡ƒ†–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡ƒ”Ž‹ƒ‡–ƒ”›–ƒ†‹‰
‘‹––‡‡ ™‡”‡ ‡šƒ‹‡† „› –Š‡ ‹‹•–”› ‹ …‘•—Ž–ƒ–‹‘ ™‹–Š –Š‡ ‡‰‹•Žƒ–‹˜‡ ‡’ƒ”–‡–Ǥ ‘•– ‘ˆ –Š‡
”‡…‘‡†ƒ–‹‘• ƒ†‡ „› –Š‡ ’‘™‡”‡† ‘‹––‡‡ ƒ† –Š‡ ƒ”Ž‹ƒ‡–ƒ”› –ƒ†‹‰ ‘‹––‡‡ ™‡”‡
ƒ……‡’–‡†ƒ†–Š‡”ƒˆ–‡†‡–‹ŽŽ™ƒ••—‹–ƒ„Ž›”‡˜‹•‡†Ǥ
(x) September, 2013ǣŠ‡ϐ‹ƒŽ †”ƒˆ– ‘•–‹–—–‹‘ƒŽ ‡†‡– ‹ŽŽ ‹…‘”’‘”ƒ–‹‰ –Š‡ ƒ„‘˜‡ •–ƒ–‡† …Šƒ‰‡•
™ƒ••‡––‘–Š‡’‘™‡”‡†‘‹––‡‡ȋȌˆ‘”…‘•‹†‡”ƒ–‹‘Ǥ
 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 627

(xi) November, 2013ǣŠ‡‘…‡ƒ‰ƒ‹ƒ†‡…‡”–ƒ‹”‡…‘‡†ƒ–‹‘•‘–Š‡‹ŽŽƒˆ–‡”‹–•‡‡–‹‰‹Š‹ŽŽ‘‰Ǥ

‡”–ƒ‹”‡…‘‡†ƒ–‹‘•‘ˆ™Š‹…Š™‡”‡‹…‘”’‘”ƒ–‡†‹–Š‡†”ƒˆ–‘•–‹–—–‹‘ȋͳͳͷ–Š‡†‡–Ȍ‹ŽŽƒ†
–Š‡”‡˜‹•‡††”ƒˆ–™ƒ•ƒ‰ƒ‹•‡––‘ˆ‘”‹–•…‘•‹†‡”ƒ–‹‘Ǥ
(xii) June, 2014ǣŠ‡†”ƒˆ–‘•–‹–—–‹‘‡†‡–‹ŽŽ‹ƒ”…ŠǡʹͲͳͶ™ƒ••‡––‘–Š‡’‘™‡”‡†‘‹––‡‡
ƒˆ–‡”ƒ’’”‘˜ƒŽ‘ˆ–Š‡‡™
‘˜‡”‡–Ǥ
(xiii) December, 2014ǣŠ‡‘•–‹–—–‹‘ȋ‡—†”‡†ƒ†™‡–›Ǧ‡…‘†‡†‡–Ȍ‹ŽŽǡʹͲͳͶ•‡‡‹‰–‘
ƒ‡†–Š‡‘•–‹–—–‹‘–‘‹–”‘†—…‡
ƒ†•—„•—‡•–ƒ–‡ƒŽ—‡††‡†ƒšǡ…–”‘‹ƒ†‡–”›–ƒšǡŽ—š—”›–ƒšǡ‡–…Ǥ
™ƒ•‹–”‘†—…‡†‹–Š‡‘ƒ„Šƒ‘‡…‡„‡”ͳͻǡʹͲͳͶ„›–Š‡‘ǯ„Ž‡‹‹•–‡”‘ˆ ‹ƒ…‡ǡ”Ǥ”— ƒ‹–Ž‡›Ǥ
(xiv) May, 2015ǣ‘•–‹–—–‹‘‡†‡–ȋͳʹʹndȌ‹ŽŽ™ƒ•’ƒ••‡†„›‘ƒ„Šƒ‘ƒ›Ͳ͸ǡʹͲͳͷǤ
(xv) May, 2015ǣƒŒ›ƒƒ„Šƒǡ‹ŽŽ™ƒ•”‡ˆ‡””‡†–‘ƒʹͳǦ‡„‡”‡Ž‡…–‘‹––‡‡‘ˆƒŒ›ƒƒ„ŠƒǤ
(xvi) July, 2015ǣ‡Ž‡…–‘‹––‡‡•—„‹––‡†‹–•”‡’‘”––‘ƒŒ›ƒƒ„Šƒ‘ —Ž›ʹʹǡʹͲͳͷǤ
(xvii) June, 2016ǣ —‡ͳͶǡʹͲͳ͸ǡ–Š‡‹‹•–”›‘ˆ ‹ƒ…‡”‡Ž‡ƒ•‡††”ƒˆ–‘†‡ŽŽƒ™‘
‹’—„Ž‹…†‘ƒ‹ˆ‘”
˜‹‡™•ƒ†•—‰‰‡•–‹‘Ǥ
(xviii) August, 2016ǣ—‰—•–Ͳ͵ǡʹͲͳ͸ǡ–Š‡‘•–‹–—–‹‘ȋͳʹʹnd‡†‡–Ȍ‹ŽŽǡʹͲͳͶ™ƒ•’ƒ••‡†„›ƒŒ›ƒ
ƒ„Šƒ™‹–Š…‡”–ƒ‹ƒ‡†‡–•Ǥ
(xix) August, 2016ǣŠ‡…Šƒ‰‡•ƒ†‡„›ƒŒ›ƒƒ„Šƒ™‡”‡—ƒ‹‘—•Ž›’ƒ••‡†„›‘ƒ„Šƒǡ‘—‰—•–ͲͺǡʹͲͳ͸Ǥ
(xx) September, 2016ǣŠ‡‹ŽŽ™ƒ•ƒ†‘’–‡†„›ƒŒ‘”‹–›‘ˆ–ƒ–‡‡‰‹•Žƒ–—”‡•™Š‡”‡‹ƒ’’”‘˜ƒŽ‘ˆƒ–Ž‡ƒ•–ͷͲΨ‘ˆ
–Š‡–ƒ–‡••‡„Ž‹‡•™ƒ•”‡“—‹”‡†Ǥ
(xxi) September, 2016ǣ ‹ƒŽƒ••‡–‘ˆ‘ǯ„Ž‡”‡•‹†‡–‘ˆ†‹ƒ™ƒ•‰‹˜‡‘ͺ–Š‡’–‡„‡”ǡʹͲͳ͸Ǥ
(xxii) April, 2017ǣƒ”Ž‹ƒ‡–’ƒ••‡†–Š‡ˆ‘ŽŽ‘™‹‰ˆ‘—”„‹ŽŽ•ǣ
Ȉ ‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍ‹ŽŽǤ
Ȉ –‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍ‹ŽŽǤ
Ȉ ‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍ‹ŽŽǤ
Ȉ
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ‹ŽŽǤ
(xxiii) April, 2017ǣ”‡•‹†‡–ǯ•ƒ••‡–™ƒ•‰‹˜‡–‘ˆ‘—”‡›Ž‡‰‹•Žƒ–‹‘•‘
‘‘†•ƒ†‡”˜‹…‡•–ƒšǤ
(xxiv) July, 2017ǣ
„‡…ƒ‡ƒ”‡ƒŽ‹–›Ǥ
Š‡…—””‡–•–ƒ–—•‘ˆ
ƒ™•ƒ••‡†‹†‹ƒ‹•ƒ•—†‡”ǣ

The law Purpose

Š‡ ‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡ ʹͲͳ͹ȋ
…–Ȍ ‘ Ž‡˜›ǡ …‘ŽŽ‡…– 
 ‘ ‹–”ƒǦ•–ƒ–‡ •—’’Ž‹‡• ƒ† ˆ‘”
‘–Š‡” ƒ––‡”•
Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ ȋ
 ‘ Ž‡˜›ǡ …‘ŽŽ‡…– 
 ‘ ‹–‡”Ǧ•–ƒ–‡ •—’’Ž‹‡• ƒ† ˆ‘”
…–Ȍ ‘–Š‡” ƒ––‡”•
Š‡ ‹‘ ‡””‹–‘”›
‘‘†• ƒ† ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹ ‘ Ž‡˜›ǡ …‘ŽŽ‡…– 
 ‘ ‹–”ƒǦ •—’’Ž‹‡• ƒ† ˆ‘”
ȋ
…–Ȍ ‘–Š‡” ƒ––‡”•

ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍƒš…–ǡʹͲͳ͹ ‘…‘’‡•ƒ–‡•–ƒ–‡•ˆ‘”–Š‡Ž‘••‘ˆ”‡˜‡—‡‹ˆƒ›†—‡
to ‹–”‘†—…–‹‘‘ˆ

Š‡ –ƒ–‡•
‘‘†• ƒ† ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹ȋ
…–Ȍ ‘ Ž‡˜›ǡ …‘ŽŽ‡…– 
 ‘ ‹–”ƒǦ•–ƒ–‡ •—’’Ž‹‡• ƒ† ˆ‘”
‘–Š‡” ƒ––‡”•

GST in India

‹•‘‡‘ˆ–Š‡„‹‰‰‡•––ƒšƒ–‹‘”‡ˆ‘”•‘ˆ‹†‡’‡†‡–†‹ƒ™‹–Š–Š‡‘„Œ‡…–‹˜‡‘ˆ‹–‡‰”ƒ–‹‰–ƒ–‡‡…‘‘‹‡•Ǥ

ǡ –Š‡ ‘•– Š‹•–‘”‹… ‹†‹”‡…– –ƒš ”‡ˆ‘”ǡ ‹• ‹’Ž‡‡–‡† ™‹–Š –Š‡ ƒ‹ ‘ˆ ‡Šƒ…‹‰ –Š‡ ‘˜‡”ƒŽŽ ‰”‘™–Š ‘ˆ –Š‡
ƒ–‹‘ ƒŽ‘‰ ™‹–Š •—’’‘”–‹‰ –Š‡ ƒ‡ ‹ †‹ƒ ‹‹–‹ƒ–‹˜‡Ǥ – ƒ‹• ƒ– …”‡ƒ–‹‰ ƒ •‹‰Ž‡ǡ —‹ϐ‹‡† †‹ƒ ƒ”‡–
–Š”‘—‰Š‘—––Š‡ƒ–‹‘Ǥ–‹•ƒ…‘’”‡Š‡•‹˜‡†‡•–‹ƒ–‹‘„ƒ•‡†‹†‹”‡…––ƒšŽ‡˜›‘‰‘‘†•ƒ•™‡ŽŽƒ••‡”˜‹…‡•ƒ––Š‡
ƒ–‹‘ƒŽŽ‡˜‡ŽǤ–•ƒ‹‘„Œ‡…–‹˜‡‹•–‘…‘•‘Ž‹†ƒ–‡—Ž–‹’Ž‡‹†‹”‡…––ƒšŽ‡˜‹‡•‹–‘ƒ•‹‰Ž‡–ƒš–Š—••—„•—‹‰ƒ
 628 Lesson 11 Ȉ EP-TL

ƒ””ƒ› ‘ˆ –ƒš Ž‡˜‹‡•ǡ ‘˜‡”…‘‹‰ –Š‡ Ž‹‹–ƒ–‹‘• ‘ˆ ’”‡˜‹‘—•

‹†‹”‡…– –ƒš •–”—…–—”‡ǡ ƒ† …”‡ƒ–‹‰ ‡ˆϐ‹…‹‡…‹‡• ‹ –ƒš ”–‹…Ž‡ ͵͸͸ȋͳʹȌ ‘ˆ –Š‡ ‘•–‹–—–‹‘ ƒ•
ƒ†‹‹•–”ƒ–‹‘Ǥ ƒ‡†‡† „› ͳͲͳ•– ‘•–‹–—–‹‘ƒŽ
‡†‡– …–ǡ ʹͲͳ͸ †‡ϐ‹‡• –Š‡
‘‘†•

‹•ƒ…‘•—’–‹‘„ƒ•‡†–ƒš™Š‹…Š‹•Ž‡˜‹‡†‘–Š‡„ƒ•‹•‘ˆ ƒ†‡”˜‹…‡•–ƒšȋ
Ȍƒ•ƒ–ƒš‘•—’’Ž›‘ˆ
Dz‡•–‹ƒ–‹‘’”‹…‹’Ž‡ǤdzŠ‡…‘…‡’–”‡Žƒ–‡•–‘–ƒš‹‰–Š‡•—’’Ž› ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‡š…‡’–•—’’Ž›‘ˆ
‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ƒ– –Š‡ ’‘‹– ‘ˆ …‘•—’–‹‘Ǥ – ‹• ƒ ƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘Ǥ‘ǡ
…‘’”‡Š‡•‹˜‡ –ƒš ”‡‰‹‡ …‘˜‡”‹‰ „‘–Š ‰‘‘†• ƒ† •‡”˜‹…‡•ǡ ƒŽ…‘Š‘Žˆ‘”Š—ƒ…‘•—’–‹‘‹•‡’–‘—–
ƒ†‹•…‘ŽŽ‡…–‡†‘˜ƒŽ—‡Ǧƒ††‡†ƒ–‡ƒ…Š•–ƒ‰‡‘ˆ–Š‡•—’’Ž›…Šƒ‹Ǥ ‘ˆ
 „› ™ƒ› ‘ˆ †‡ϐ‹‹–‹‘ ‘ˆ
 ‹ –Š‡
—”–Š‡”ǡ
’ƒ‹†‘–Š‡’”‘…—”‡‡–‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•…ƒ …‘•–‹–—–‹‘Ǥ
„‡•‡–‘ˆˆƒ‰ƒ‹•––Šƒ–’ƒ›ƒ„Ž‡‘–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǥ
‹’Ž›’—–ǡ
‘‘†•ƒ†‡”˜‹…‡•ƒš‹•ƒ–ƒšŽ‡˜‹‡†‘‰‘‘†•ƒ† —”–Š‡”ǡ ƒ• ’‡” ”–‹…Ž‡ ʹ͹ͻ ȋͷȌ ‘ˆ –Š‡
•‡”˜‹…‡•‹’‘•‡†ƒ–‡ƒ…Š’‘‹–‘ˆ•—’’Ž›Ǥ
‹•ƒƒ–‹‘ƒŽŽ‡˜‡Ž ‘•–‹–—–‹‘ǡ ϐ‹˜‡ ’‡–”‘Ž‡— ’”‘†—…–• ˜‹œǤ
–ƒš„ƒ•‡†‘˜ƒŽ—‡ƒ††‡†’”‹…‹’Ž‡Œ—•–Ž‹‡–ƒ–‡Ž‡˜‡Ž™Š‹…Š ’‡–”‘Ž‡—…”—†‡ǡ‘–‘”•’‹”‹–ȋ’‡–”‘ŽȌǡŠ‹‰Š
™ƒ•Ž‡˜‹‡†ƒ•–ƒš‘•ƒŽ‡‘ˆ‹–”ƒǦ•–ƒ–‡‰‘‘†•Ǥ •’‡‡† †‹‡•‡Žǡ ƒ–—”ƒŽ ‰ƒ• ƒ† ƒ˜‹ƒ–‹‘
Š‡‡••‡…‡‘ˆ
‹•‹”‡‘˜‹‰–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–•‹Ǥ‡Ǥǡ–ƒš –—”„‹‡ˆ—‡ŽŠƒ˜‡–‡’‘”ƒ”‹Ž›„‡‡‡’–‘—–
‘–ƒš‘ˆ„‘–Š‡–”ƒŽƒ†–ƒ–‡–ƒš‡•„›ƒŽŽ‘™‹‰•‡––‹‰Ǧ‘ˆˆ‘ˆ ƒ†
‘—…‹Ž•ŠƒŽŽ†‡…‹†‡–Š‡†ƒ–‡ˆ”‘
–ƒš‡•–Š”‘—‰Š‘—––Š‡˜ƒŽ—‡…Šƒ‹ǡ”‹‰Š–ˆ”‘–Š‡‘”‹‰‹ƒŽ’”‘†—…‡” ™Š‹…Š –Š‡› •ŠƒŽŽ „‡ ‹…Ž—†‡† ‹
Ǥ
ƒ†•‡”˜‹…‡’”‘˜‹†‡”ǯ•’‘‹–—’–‘–Š‡…‘•—‡”Ž‡˜‡ŽǤ
‹•ƒ ††‹–‹‘ƒŽŽ›ǡ–Š‘—‰Šǡ‡Ž‡…–”‹…‹–›Šƒ•‘–„‡‡
ƒŒ‘”‹’”‘˜‡‡–‘˜‡”‡š‹•–‹‰•›•–‡‘ˆƒ††‹•Œ‘‹–‡† ‡š’Ž‹…‹–Ž› ‡š…Ž—†‡† ˆ”‘
 „—– ‹– ‹•
‡”˜‹…‡ ƒš —•Š‡”‹‰ ƒ …‘ŽŽ‡…–‹˜‡ ‰ƒ‹ ˆ‘” ‹†—•–”›ǡ –”ƒ†‡ ƒ† …‘•‹†‡”‡† ƒ• ‹Ž ”ƒ–‡† ‹
 ƒ†
…‘‘…‘•—‡”•ƒ•™‡ŽŽƒ•ˆ‘”–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ† …‘–‹—‡• –‘ „‡ …Šƒ”‰‡† ™‹–Š ’”‡Ǧ

–Š‡ –ƒ–‡
‘˜‡”‡–• ƒ– Žƒ”‰‡Ǥ
ǡ ƒ• ƒ ™‡ŽŽǦ†‡•‹‰‡† ˜ƒŽ—‡ –ƒš‡• ‹Ǥ‡Ǥ ‡Ž‡…–”‹…‹–› †—–› „› –Š‡ –ƒ–‡
ƒ††‡†–ƒš‘ƒŽŽ‰‘‘†•ƒ†•‡”˜‹…‡•ǡ‹•–Š‡‘•–‡Ž‡‰ƒ–‡–Š‘†
‘˜‡”‡–•Ǥ
–‘‡Ž‹‹ƒ–‡†‹•–‘”–‹‘•ƒ†–‘–ƒš…‘•—’–‹‘Ǥ

Š‡ˆ‘ŽŽ‘™‹‰•—„Œ‡…–ƒ––‡”•‡’–‘—–•‹†‡–Š‡’—”˜‹‡™‘ˆ
Ǥ••—…Š–Š‡•‡ƒ”‡–ƒš‡†—†‡”–Š‡‡š‹•–‹‰Žƒ™•‘ˆ
…‡–”‡ƒ†•–ƒ–‡•ƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ

Ž…‘Š‘Žˆ‘”Š—ƒ
…‘•—’–‹‘

–‡”–ƒ‹‡––ƒš ‡–”‘Ž‡—”‘†—…–•ǣ
…‘ŽŽ‡…–‡†„›Ž‘…ƒŽ ’‡–”‘Ž‡—…”—†‡ǡ‘–‘”
„‘†‹‡• •’‹”‹–ȋ’‡–”‘ŽȌǡŠ‹‰Š•’‡‡†
†‹‡•‡Žǡƒ–—”ƒŽ‰ƒ•ƒ†
ƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡Ž

‘–‘”˜‡Š‹…Ž‡•–ƒš Ž‡…–”‹…‹–›

”‘’‡”–›–ƒš‡•ǡ•—…Š
ƒ••–ƒ’†—–›

‘„ƒ……‘ƒ†–‘„ƒ……‘’”‘†—…–•™‘—Ž†„‡•—„Œ‡…––‘
Ǥƒ††‹–‹‘ǡ–Š‡‡–”‡™‘—Ž†Šƒ˜‡–Š‡’‘™‡”–‘Ž‡˜›‡–”ƒŽ
š…‹•‡†—–›‘–Š‡•‡’”‘†—…–•Ǥ
 Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 629

Š‡ˆ‘ŽŽ‘™‹‰–ƒš‡•Šƒ˜‡„‡‡•—„•—‡†—†‡”
ǣ

Central Taxes State Taxes

‡–”ƒŽš…‹•‡—–› –ƒ–‡

—–‹‡•‘ˆš…‹•‡
ȋ‡†‹…‹ƒŽƒ†‘‹Ž‡– ‡–”ƒŽƒŽ‡•ƒš
”‡’ƒ”ƒ–‹‘•Ȍ

††‹–‹‘ƒŽ—–‹‡•
‘ˆš…‹•‡ȋ
‘‘†•‘ˆ —”…Šƒ•‡ƒš
’‡…‹ƒŽ
’‘”–ƒ…‡Ȍ

††‹–‹‘ƒŽ—–‹‡•‘ˆ
š…‹•‡ȋ‡š–‹Ž‡•ƒ† —š—”›ƒš
‡š–‹Ž‡”‘†—…–•Ȍ

††‹–‹‘ƒŽ—–‹‡•‘ˆ
—•–‘• –”›ƒš
ȋ…‘‘Ž›‘™ ȋŽŽˆ‘”•Ȍ
ƒ•Ȍ

’‡…‹ƒŽ††‹–‹‘ƒŽ –‡”–ƒ‹‡–ƒš
—–›‘ˆ—•–‘• ȋ‡š…‡’––Š‘•‡
Ž‡˜‹‡†„›–Š‡Ž‘…ƒŽ
ȋȌ
„‘†‹‡•Ȍ

ƒš‡•‘
‡”˜‹…‡ƒš
ƒ†˜‡”–‹•‡‡–•

‡••‡•ƒ†•—”Ǧ ƒš‡•‘Ž‘––‡”‹‡•ǡ
…Šƒ”‰‡•‹•‘ˆƒ”ƒ• „‡––‹‰ƒ†
–Š‡›”‡Žƒ–‡–‘•—’’Ž› ‰ƒ„Ž‹‰
‘ˆ‰‘‘†•‘”•‡”˜‹…‡•

–ƒ–‡…‡••‡•ƒ†
•—”…Šƒ”‰‡•‹•‘ˆƒ”
ƒ•–Š‡›”‡Žƒ–‡–‘
•—’’Ž›‘ˆ‰‘‘†•‘”
•‡”˜‹…‡•
 630 Lesson 11 Ȉ EP-TL

Models of GST
Š‡’”‹…‹’Ž‡•‘ˆ
ƒ”‡Žƒ”‰‡Ž›…‘‘‹ƒŽ‘•–ƒŽŽ–Š‡…‘—–”‹‡•Ǥ‘™‡˜‡”ǡ–Š‡”‡ƒ”‡•‹‰‹ϐ‹…ƒ–†‹ˆˆ‡”‡…‡•‹
–Š‡‹’Ž‡‡–ƒ–‹‘‘ˆ–Š‡•ƒ‡†‡’‡†‹‰‘…‘–‹—‡†‡š‹•–‡…‡‘ˆ‡š‡’–‹‘•ƒ†•’‡…‹ƒŽƒ””ƒ‰‡‡–•–‘‡‡–
•’‡…‹ϐ‹… ’‘Ž‹…› ‘„Œ‡…–‹˜‡•Ǥ Š‡ ’‘‹– ‘ˆ †‹ˆˆ‡”‡…‡ ƒŽ•‘ ƒ”‹•‡• ˆ”‘ †‹ˆˆ‡”‡…‡• ‘ˆ ƒ’’”‘ƒ…Š‡• ‹ –Š‡ †‡ϐ‹‹‰ –Š‡
Œ—”‹•†‹…–‹‘‘ˆ…‘•—’–‹‘ƒ†Š‡…‡‘ˆ–Š‡–ƒšƒ–‹‘Ǥ‘”‡‘˜‡”ǡ–Š‡”‡ƒ”‡ƒ—„‡”‘ˆ˜ƒ”‹ƒ–‹‘•‹–Š‡ƒ’’Ž‹…ƒ–‹‘
‘ˆ
ƒŽ‘‰™‹–Š†‹ˆˆ‡”‡–‹–‡”’”‡–ƒ–‹‘‘ˆ–Š‡•ƒ‡‘”•‹‹Žƒ”…‘…‡’–•ǡ†‹ˆˆ‡”‡–ƒ’’”‘ƒ…Š‡•–‘–‹‡‘ˆ•—’’Ž›
ƒ†‹–•‹–‡”ƒ…–‹‘™‹–Š’Žƒ…‡‘ˆ•—’’Ž›ǡ†‹ˆˆ‡”‡–†‡ϐ‹‹–‹‘•‘ˆ•‡”˜‹…‡•ƒ†‹–ƒ‰‹„Ž‡•ƒ†‹…‘•‹•–‡––”‡ƒ–‡–
‘ˆ‹š‡†•—’’Ž‹‡•ǡƒ”‘—†–Š‡™‘”Ž†Ǥ
‹ˆˆ‡”‡–…‘—–”‹‡•ˆ‘ŽŽ‘™†‹ˆˆ‡”‡–‘†‡Ž‘ˆ
„ƒ•‡†—’‘–Š‡‹”‘™Ž‡‰‹•Žƒ–‹˜‡ƒ†ƒ†‹‹•–”ƒ–‹˜‡•–”—…–—”‡ƒ†
–Š‡‹””‡“—‹”‡‡–•Ǥ‘‡‘ˆ–Š‡•‡‘†‡Ž•ƒ”‡ǣ
Ȉ —•–”ƒŽ‹ƒ‘†‡Ž™Š‡”‡‹ǡ–ƒš‹•…‘ŽŽ‡…–‡†„›–Š‡‡–”‡ƒ††‹•–”‹„—–‡†–‘–Š‡–ƒ–‡•Ǥ
Ȉ ƒƒ†‹ƒ‘†‡Ž™Š‡”‡‹–Š‡”‡ƒ”‡–Š”‡‡˜ƒ”‹ƒ–•‘ˆ–ƒš‡•Ǥ
Ȉ ‡Žƒ”ǦŠƒŠ‘†‡Ž„ƒ•‡†‘ƒƒ†ƒ‘†‡Ž™Š‡”‡‹–ƒš‡•ƒ”‡…‘ŽŽ‡…–‡†„›–Š‡‡–”‡Š‘™‡˜‡”ǡ–™‘Ǧ†‹ˆˆ‡”‡–
”ƒ–‡•‘ˆ–ƒšƒ”‡–‘„‡Ž‡˜‹‡†„›–Š‡‡–”‡ƒ†–Š‡–ƒ–‡•Ǥƒ†
Ȉ ƒ‰…Š‹Ǧ‘††ƒ” ‘†‡Ž ™Š‹…Š ‡˜‹•ƒ‰‡• ƒ …‘„‹ƒ–‹‘ ‘ˆ ‡–”ƒŽ š…‹•‡ǡ ‡”˜‹…‡ ƒš ƒ†  –‘ ƒ‡ ‹– ƒ
…‘‘„ƒ•‡‘ˆ
–‘„‡Ž‡˜‹‡†„‘–Š„›–Š‡‡–”‡ƒ†–Š‡–ƒ–‡••‡’ƒ”ƒ–‡Ž›Ǥ
‘•–Ž›ƒŽŽ‘˜‡”–Š‡™‘”Ž†ǡƒ›…‘—–”‹‡•ˆ‘ŽŽ‘™ƒ—‹ϐ‹‡†
”‡‰‹‡Ǥ‘™‡˜‡”ǡ…‘•‹†‡”‹‰–Š‡ˆ‡†‡”ƒŽƒ–—”‡‘ˆ
†‹ƒ‘•–‹–—–‹‘ǡ†—ƒŽ‘†‡Ž‘ˆ
™ƒ•”‡“—‹”‡†ǡ’”‘’‘•‡†ƒ†Ž‡˜‹‡†Ǥ†—ƒŽ‘†‡Ž‘ˆ
ǡ™Š‡”‡–Š‡’‘™‡”
–‘Ž‡˜›–ƒš‡•‹••—„Œ‡…–‹˜‡Ž›†‹•–”‹„—–‡†„‡–™‡‡‡–”‡ƒ†–ƒ–‡•ǡ
‹•Ž‡˜‹‡†„›„‘–Šǡ–Š‡‡–”‡ƒ•™‡ŽŽƒ•–Š‡
–ƒ–‡•ƒ†–Š‡”‡ƒ”‡•‡’ƒ”ƒ–‡Ž‡˜‹‡•‹–Š‡ˆ‘”‘ˆ‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍǡ–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•
ƒš ȋ
Ȍ ƒ† –‡‰”ƒ–‡†
‘‘†• ƒ† ‡”˜‹…‡• ƒš ȋ
Ȍ ‡ƒ„Ž‹‰ –Š‡ –ƒš …”‡†‹– ƒ…”‘•• –Š‡•‡ –Š”‡‡ ˜ƒ”‹ƒ–• ‘ˆ
–ƒš‡•Ǥ—””‡–Ž›ǡ”ƒœ‹Žƒ†ƒƒ†ƒƒŽ•‘ˆ‘ŽŽ‘™†—ƒŽ
‘†‡ŽǤ
Š‡†‹ƒ
•›•–‡Šƒ•‹–•‘™—‹“—‡‡••‹ƒ›™ƒ›•Ǥ’ƒ”–ˆ”‘†‹ƒǡ”ƒœ‹Ž‹•–Š‡‘Ž›…‘—–”›‹–Š‡
™‘”Ž†™Š‹…Šˆ‘ŽŽ‘™•ƒ•‹‹Žƒ”†—ƒŽ
›•–‡Ǥ†‹ƒǡ
Šƒ•„‡‡”‘ŽŽ‡†‘—–ƒ•ƒ—‹ˆ‘”–ƒšƒ–‹‘•›•–‡ƒŽŽ
ƒ…”‘••–Š‡ƒ–‹‘„›”‡‘˜‹‰‡–”›„ƒ””‹‡”•„‡–™‡‡•–ƒ–‡•Ǥ
ƒƒ†ƒǡ–Š‘—‰Š
•…Š‡‡…Ž‘•‡Ž›”‡•‡„Ž‡•–Šƒ–‘ˆ†‹ƒǡ‹–ˆƒ‹Ž‡†–‘ƒ…Š‹‡˜‡…‘•‡•—•ƒ‘‰•–ƒ–‡•Ǥ•ƒ
”‡•—Ž––Š‡
™ƒ•ƒ†‡‘’–‹‘ƒŽ‘–ƒ†ƒ–‘”›Ǥ–ƒ–‡•ƒ”‡ˆ”‡‡–‘ƒ†‘’–‘””‡Œ‡…–
Ǥ†‹ƒǡ
‹•—‹ˆ‘”Ž›
ƒ’’Ž‹…ƒ„Ž‡ƒŽŽ‘˜‡”†‹ƒ‹…Ž—†‹‰–Š‡–ƒ–‡‘ˆ ƒ—ƒ†ƒ•Š‹”Ǥ

LESSON ROUND-UP

Ȉ Š‡”‡ƒ”‡–™‘–›’‡•‘ˆ–ƒš‡•‹Ǥ‡Ǥǡ‹”‡…––ƒšƒ††‹”‡…–ƒšǤ
Ȉ ”‡˜‹‘—• †‹”‡…– –ƒš Žƒ™• …‘•‹•–‡† ‘ˆ ˜ƒ”‹‘—• –ƒš‡• ƒ– ‡–”ƒŽ ƒ† –ƒ–‡ Ž‡˜‡Ž ‹…Ž—†‹‰ ǡ š…‹•‡ǡ
‡”˜‹…‡ƒšƒ†Ž‹‡Ǥ
Ȉ ”‡˜‹‘—••–”—…–—”‡‘ˆ‹†‹”‡…––ƒšƒ–‹‘‹†‹ƒŠƒ†•‘‡…ŠƒŽŽ‡‰‡•™Š‹…Š‡‡†‡†–‘„‡ƒ††”‡••‡†Ǥ
Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒš”‡‰‹‡‘ˆ‹†‹”‡…––ƒš‡•„”‘—‰Š–ƒ•‹‰Ž‡–ƒš™Š‹…Š™ƒ•Ž‡˜‹‡†‘•—’’Ž›‘ˆ‰‘‘†•
‘”•‡”˜‹…‡•‘”„‘–Š™‹–Š…‘…—””‡–Œ—”‹•†‹…–‹‘‘ˆ‡–”‡ƒ†•–ƒ–‡•Ǥ
Ȉ ƒ”‹‘—•‘•–‹–—–‹‘ƒŽƒ‡†‡–•„‡…ƒ‡‡…‡••ƒ”›–‘‡ƒ„Ž‡…‡–”‡ƒ†•–ƒ–‡•–‘Ž‡˜›
•‹—Ž–ƒ‡‘—•Ž›Ǥ
Ȉ  Š‹‰Š ’‘™‡”‡† ˆ‡†‡”ƒŽ „‘†› …ƒŽŽ‡†
 ‘—…‹Ž Šƒ• „‡‡ ‡•–ƒ„Ž‹•Š‡† —†‡” ”–‹…Ž‡ ʹ͹ͻ ‘ˆ –Š‡
‘•–‹–—–‹‘‘ˆ†‹ƒǤ
Ȉ 
‘—…‹Ž…‘•‹•–‹‰‘ˆ”‡’”‡•‡–ƒ–‹˜‡•ˆ”‘–Š‡‡–”‡ƒ•™‡ŽŽƒ•–ƒ–‡Šƒ•„‡‡ˆ‘”—Žƒ–‡†—†‡”
–Š‡
ƒ™‘ˆ‹†‹”‡…––ƒš‡•ǤŠ‡‘—…‹Ž™‹ŽŽƒ‡”‡…‘‡†ƒ–‹‘•–‘–Š‡‹‘ƒ†–Š‡–ƒ–‡•‘

‘‘†•ƒ†‡”˜‹…‡ƒšŽƒ™•ǡ‘ƒ›‘–Š‡”ƒ––‡””‡Žƒ–‹‰–‘
Ǥ
Ȉ ƒ”‹‘—•‡™”–‹…Ž‡•™‡”‡‹•‡”–‡†ƒ†‘Ž†‘‡•‘‹––‡†ƒ†
™ƒ•„‘—‰Š–‹„›‘•–‹–—–‹‘ȋͳͲͳ•–Ȍ
‡†‡–…–ǡʹͲͳ͸Ǥ
Lesson 11 Ȉ‘…‡’–‘ˆ†‹”‡…–ƒš‡•ƒ–ƒ
Žƒ…‡ 631

GLOSSARY

GST Council:
…‘—…‹Ž‹•ƒƒ’‡š‡„‡”…‘‹––‡‡—†‡”
ǡ•‡–—’–‘‘†‹ˆ›ǡ”‡…‘…‹Ž‡ƒ†’”‘…—”‡
ƒ›Žƒ™‘””‡‰—Žƒ–‹‘’‡”–ƒ‹‹‰–‘–Š‡
‘‘†•ƒ†‡”˜‹…‡–ƒš‹†‹ƒǤŠ‡‘—…‹Ž‡‡–•ƒ–ƒ
†‡•–‹‡††ƒ–‡–‘–ƒ‡—’‹••—‡•’‡”–ƒ‹‹‰–‘–Š‡‡ˆ‘”…‡‡–‘ˆ–Š‡Žƒ™ǡ†‹•…—••‡•ƒ––‡”•ƒ–
Šƒ†ƒ†–ƒ‡ƒ…–‹‘•Ǥ
IGST: –‹•–Š‡‹–‡‰”ƒ–‡†–ƒšŽ‡˜‹‡†„›–Š‡‡–”‡‘–Š‡‹–‡”•–ƒ–‡–”ƒ•ƒ…–‹‘•‘ˆ–ƒšƒ„Ž‡‰‘‘†•ƒ†
•‡”˜‹…‡•Ǥ
SGST: –‹•–Š‡
Ž‡˜‹‡†„›–Š‡–ƒ–‡
‘˜‡”‡–‘–Š‡‹–”ƒ•–ƒ–‡–”ƒ•ƒ…–‹‘•‘ˆ–ƒšƒ„Ž‡‰‘‘†•ƒ†
•‡”˜‹…‡•Ǥ

TEST YOURSELF

(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)

Multiple Choice Questions (MCQs)

1. Š‡
‘—…‹Ž™ƒ•‡•–ƒ„Ž‹•Š‡†—†‡”ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ‘ˆ–Š‡‘•–‹–—–‹‘Ǥ

ƒȌ ”–‹…Ž‡ʹ͸ͻ

„Ȍ ”–‹…Ž‡͵͸ͺ

…Ȍ ”–‹…Ž‡ʹͺ͸

†Ȍ ”–‹…Ž‡ʹ͹ͻ

•™‡”ǣȋ†Ȍ

2.
‘–Š‡•‡‰‘‘†•™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡ǡ™Š‡”‡…‘‡†‡†„›–Š‡
‘—…‹ŽǤ

ƒȌ ‡–”‘Ž‡—”—†‡

„Ȍ ‹‰Š’‡‡†‹‡•‡Ž

…Ȍ ‘–‘”’‹”‹–

†Ȍ ŽŽ‘ˆ–Š‡„‘˜‡

•™‡”ǣȋ†Ȍ

3. Š‡ϐ‹”•–…‘—–”›–‘‹’Ž‡‡–
™ƒ•̴̴̴̴̴̴̴̴Ǥ

ƒȌ ”ƒ…‡

„Ȍ
‡”ƒ›

…Ȍ ”‰‡–‹ƒ

†Ȍ —•–”ƒŽ‹ƒ

•™‡”ǣȋƒȌ
632 Lesson 11 Ȉ EP-TL

4.
…ƒ‡‹–‘ˆ‘”…‡„›–Š‡̴̴̴̴̴̴‘•–‹–—–‹‘ƒŽ‡†‡–…–Ǥ

ƒȌ ͳͳͲ

„Ȍ ͳͲͳ

…Ȍ ͳͳͳ

†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡

•™‡”ǣȋ„Ȍ

5. ̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴…‘–ƒ‹•–Š‡’‘™‡”–‘ƒ‡Žƒ™•™‹–Š”‡•’‡…––‘
„›‹‘ƒ†–ƒ–‡
‘˜‡”‡–Ǥ

ƒȌ ”–‹…Ž‡ʹͷͶ

„Ȍ ”–‹…Ž‡ʹͶ͸

…Ȍ ”–‹…Ž‡ʹͶ͸

†Ȍ ”–‹…Ž‡ʹ͸Ͷ

•™‡”ǣȋ…Ȍ

LIST OF FURTHER READINGS

Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒšǡƒ™•ǡ‘…‡’–•ƒ†’ƒ…–ƒŽ›•‹•ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽƬƒŒ‡‡˜
ƒŽŠ‘–”ƒ
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›
Ȉ …‘’Ž‡–‡‰—‹†‡–‘
‘‘†•Ƭ‡”˜‹…‡•ƒš‡ƒ†›‡…‘‡”‹Ƭ ‘”ƒ–ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜
‰ƒ”™ƒŽƬƒŒ‡‡˜ƒŽŠ‘–”ƒ
Ȉ ƒ”‡…–•‘ˆ


OTHER REFERENCES

Ȉ Š––’ǣȀȀ‰•–…‘—…‹ŽǤ‰‘˜Ǥ‹
Ȉ Š––’•ǣȀȀ™™™Ǥ‰•–Ǥ‰‘˜Ǥ‹Ȁ
Ȉ Š––’•ǣȀȀ™™™Ǥ…„‹…Ǥ‰‘˜Ǥ‹ȀŠ–†‘…•Ǧ…„‡…Ȁ‰•–Ȁ‹†‡šǦ‡‰Ž‹•Š
 Basics of Goods and Services
Lesson 12 Tax
Key Concepts One Learning Objectives Regulatory
Should Know
To understand Framework
Ȉ —’’Ž›
Ȉ ‘…‡’–•‘ˆ
 ͳǤ ‡–”ƒŽ
‘‘†• ƒ† ‡”˜‹…‡• ƒš
Ȉ ‘•‹†‡”ƒ–‹‘
Ȉ ‡•–‹ƒ–‹‘”‹…‹’Ž‡ …–ǡ2017
Ȉ 

Ȉ —ƒŽ
‘†‡Ž
Ȉ 
 Section Deals with
Ȉ —–•‹†‡–Š‡•…‘’‡‘ˆ

Ȉ ‘’‘•‹–‹‘ ‡…–‹‘ʹȋ͵ͲȌ ‡ϐ‹‹–‹‘‘ˆ
Ȉ ƒ•‹……ƒŽ…—Žƒ–‹‘‘ˆ
 ‘’‘•‹–‡—’’Ž›
…Š‡‡
Ȉ ‡ƒ‹‰‘ˆ‡Žƒ–‡† ‡…–‹‘ʹȋ͹ͶȌ ‡ϐ‹‹–‹‘‘ˆ‹š‡†
Ȉ ‘’‘•‹–‡—’’Ž› —’’Ž›
’‡”•‘•ƒ††‹•–‹…–
Ȉ ‹š‡†—’’Ž› ’‡”•‘ ‡…–‹‘͹ ‡ƒ‹‰ƒ†…‘’‡
‘ˆ—’’Ž›
Ȉ ‘…‡’–‘ˆ—’’Ž›
‡…–‹‘ͳͲ ‘’‘•‹–‹‘
Ȉ ‘’‘•‹–‡—’’Ž›ƒ† …Š‡‡
‹š‡†—’’Ž› ‡…–‹‘ͳͳ ‘™‡”–‘‰”ƒ–
‡š‡’–‹‘ˆ”‘–ƒš
Ȉ ‘’‘•‹–‹‘…Š‡‡
‡…–‹‘ͳͷ ƒŽ—‡‘ˆƒšƒ„Ž‡
Ȉ ‘”™ƒ”†Šƒ”‰‡ —’’Ž›
‡…Šƒ‹•ƒ†‡˜‡”•‡ ‡…–‹‘ʹͷ ”‘…‡†—”‡ˆ‘”
Šƒ”‰‡‡…Šƒ‹• ‡‰‹•–”ƒ–‹‘

Lesson Outline
Ȉ ƒ•‹……‘…‡’–•ƒ†‘˜‡”˜‹‡™‘ˆ

Ȉ ‡‰—Žƒ–‘”› ”ƒ‡™‘”
Ȉ
‘†‡Ž
Ȉ ‘•–‹–—–‹‘ƒŽ ”ƒ‡™‘”‘ˆ

Ȉ ƒšƒ„Ž‡˜‡–
Ȉ ƒŽ…—Žƒ–‹‘‘ˆ

Ȉ ‘…‡’–‘ˆ•—’’Ž›‹…Ž—†‹‰…‘’‘•‹–‡ƒ†‹š‡†•—’’Ž›
Ȉ ‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆƒš
Ȉ ‘’‘•‹–‹‘…Š‡‡Ƭ‡˜‡”•‡Šƒ”‰‡
Ȉ š‡’–‹‘•—†‡”

Ȉ 
Ȉ

Ȉ 
Ȉ   

 634 Lesson 12 Ȉ EP-TL

BASIC CONCEPTS AND OVERVIEW OF GOODS AND SERVICES TAX

‡ƒ‹‰‘ˆ


 ‹• ƒ •‹‰Ž‡ǡ —‹ϐ‹‡† –ƒš ‘ ‡˜‡”› ˜ƒŽ—‡Ǧƒ††ǡ ”‹‰Š– ˆ”‘ Destination Based Tax:
ƒ—ˆƒ…–—”‡ –‘ •ƒŽ‡ Ȁ …‘•—’–‹‘ ‘ˆ ‰‘‘†• Ȁ •‡”˜‹…‡•Ǥ ‡…‡ǡ
‡•–‹ƒ–‹‘ ƒ•‡† ƒš ‹• –Š‡ –ƒš „ƒ•‡† ‘
™‹–Š–Š‡ƒ†˜‡–‘ˆ
ǡ–Š‡Ž‡‰ƒ…›–ƒš‡•‘ƒ—ˆƒ…–—”‡ȋš…‹•‡Ȍǡ
†‡•–‹ƒ–‹‘‘”…‘•—’–‹‘‘ˆ–Š‡‰‘‘†•‘”
–‡”Ǧ–ƒ–‡ •ƒŽ‡• ȋȌǡ –”ƒǦ–ƒ–‡ •ƒŽ‡• ȋȌ ƒ† ‡”˜‹…‡ ƒš
•‡”˜‹…‡•Ǥ – ‹• †‹ˆˆ‡”‡– ˆ”‘ ‘”‹‰‹ „ƒ•‡†
Šƒ˜‡„‡‡•—„•—‡†ǤŠ‡”‡Šƒ•„‡‡ƒ’ƒ”ƒ†‹‰•Š‹ˆ–‹–Š‡™ƒ›
–ƒšƒ–‹‘ „‡…ƒ—•‡ ‘”‹‰‹ „ƒ•‡† –ƒš ‹• Ž‡˜‹‡†
–Š‡–ƒš‹•„‡‹‰Ž‡˜‹‡†Ǥ‡Šƒ˜‡‘™‘˜‡†ˆ”‘•‘—”…‡„ƒ•‡†–‘
™Š‡”‡‰‘‘†•‘”•‡”˜‹…‡•ƒ”‡’”‘†—…‡†Ǥ
†‡•–‹ƒ–‹‘Ǧ„ƒ•‡†–ƒšƒ–‹‘ǡ™‹–Š
…‘‹‰‹–‘ˆ‘”ƒ›Ǥ‡…‡

‹•ƒŽ•‘Žƒ„‡ŽŽ‡†ƒ•ƒ†‡•–‹ƒ–‹‘Ǧ„ƒ•‡†Ȁ…‘•—’–‹‘Ǧ„ƒ•‡†–ƒšǤ
Continuous chain of tax credits

ƒŽ•‘†‘‡•ƒ™ƒ›™‹–Š–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–•‘ˆ–ƒšƒ–‹‘ǡ„›’”‘˜‹†‹‰ƒ…‘’”‡Š‡•‹˜‡ƒ†…‘–‹—‘—•…Šƒ‹‘ˆ
–ƒš…”‡†‹–•ǡ‡†–‘‡†ƒ†–ƒš‹‰‘Ž›–Š‡˜ƒŽ—‡Ǧƒ††‡†ƒ–‡˜‡”›•–ƒ‰‡ǤŠ‡ϐ‹ƒŽ–ƒš‹•„‘”‡„›–Š‡‡†…‘•—‡”ǡƒ•
ƒŽŽ–Š‡’ƒ”–‹‡•‹–Š‡‹–‡”‹…ƒ‡š–‹‰—‹•Š–Š‡‹””‡•’‡…–‹˜‡…‘ŽŽ‡…–‹‘•ƒ‰ƒ‹•––Š‡‹””‡•’‡…–‹˜‡Ž‹ƒ„‹Ž‹–‹‡•ƒ†–Š‡–ƒš
ƒŽ”‡ƒ†›’ƒ‹†„›–Š‡ȋ’—–ƒš”‡†‹–ȌǤ

GST MODEL
Dual GST Model:
†‹ƒŠƒ•ƒ†‘’–‡†ƒ†—ƒŽ
‘†‡Žǡ‹Ǥ‡Ǥǡ™Š‡”‡–Š‡–ƒš‹•‹’‘•‡†…‘…—””‡–Ž›„›–Š‡‡–”‡ƒ†–Š‡–ƒ–‡•Ǥ ‘”ƒ
‹–”ƒǦ–ƒ–‡•ƒŽ‡ǡ–Š‡
‹•‡“—ƒŽŽ›†‹˜‹†‡†„‡–™‡‡–Š‡‡–”‡ƒ†–Š‡–ƒ–‡ȋ
Ϊ
Ȍǡƒ†ˆ‘”‹–‡”Ǧ–ƒ–‡•ƒŽ‡•ǡ
–Š‡
‹•…‘ŽŽ‡…–‡†„›–Š‡‡–”‡ȋ
ȌǤ
CGST/SGST/UTGST/IGST
Ȉ
 ‹• ƒ †‡•–‹ƒ–‹‘Ǧ„ƒ•‡† –ƒš ƒ’’Ž‹…ƒ„Ž‡ ‘ ƒŽŽ –”ƒ•ƒ…–‹‘•ǡ ‹˜‘Ž˜‹‰ •—’’Ž› ‘ˆ ‰‘‘†•Ȁ•‡”˜‹…‡• ˆ‘” ƒ
…‘•‹†‡”ƒ–‹‘ǡƒ†…‘’”‹•‡•‘ˆCentral Goods & Services Tax (CGST)ǡŽ‡˜‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ
ƒ†State Goods and Services Tax (SGST)ǡŽ‡˜‹‡†„›–Š‡–ƒ–‡
‘˜‡”‡–Ǣ
Ȉ Union Territory Goods and Services Tax (UTGST) Ž‡˜‹‡†„›‹‘‡””‹–‘”‹‡•ǡ‘‹–”ƒǦ–ƒ–‡•—’’Ž‹‡•‘ˆ
–ƒšƒ„Ž‡‰‘‘†•Ƭ•‡”˜‹…‡•Ǥ–‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ–ƒšƒ„Ž‡‰‘‘†•Ȁ•‡”˜‹…‡•ƒ”‡•—„Œ‡…––‘–‡‰”ƒ–‡†
‘‘†•Ƭ
‡”˜‹…‡•ƒšȋ
Ȍǡ™Š‹…Š‹•Ž‡˜‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ†‹•‡“—ƒŽ–‘
Ϊ
Ǥ

Legislative Framework:
Š‡
‹•Ž‡˜‹‡†—†‡”–Š‡
…–ǡʹͲͳ͹Ǥ
‹•Ž‡˜‹‡†—†‡”–Š‡
…–ǡʹͲͳ͹ƒ†–Š‹•‹•ƒ’’Ž‹…ƒ„Ž‡–‘
‹‘‡””‹–‘”‹‡•ǡ‹Ǥ‡Ǥǡ†ƒƒƬ‹…‘„ƒ”•Žƒ†•ǡƒ•Šƒ†™‡‡’ǡƒ†”ƒƬƒ‰ƒ”ƒ˜‡Ž‹ƒ†ƒƒƬ‹—ȋ™Ǥ‡ǤˆǤ
ʹ͸ǤͲͳǤʹͲʹͲȌǡŠƒ†‹‰ƒ”Šǡ ƒ—Ƭƒ•Š‹”ȋ™Ǥ‡ǤˆǤ͵ͳǤͳͲǤʹͲͳͻȌǡƒ†ƒŠȋ™Ǥ‡ǤˆǤ͵ͳǤͳͲǤʹͲͳͻȌǡ
ƒ–‹‘ƒŽƒ’‹–ƒŽ‡””‹–‘”›‘ˆ‡ŽŠ‹ƒ†—†—…Š‡””›ȋ‡ƒ”Ž‹‡”‘†‹…Š‡””›ȌǤ
‹•Ž‡˜‹‡†—†‡”–Š‡”‡•’‡…–‹˜‡•–ƒ–‡
Ž‡‰‹•Žƒ–‹‘•Ǥ ƒ— Ƭ ƒ•Š‹” Ƭ ƒ†ƒŠ Šƒ• „‡‡ ƒ†‡ —‹‘ –‡””‹–‘”‹‡•Ǥ Š‡ ”‡‘”‰ƒ‹œƒ–‹‘ –‘‘ ‡ˆˆ‡…– ˆ”‘
…–‘„‡”͵ͳǡʹͲͳͻǤƒ†”ƒƬƒ‰ƒ”ƒ˜‡Ž‹ƬƒƒƬ‹—ƒ”‡‡”‰‡†‹–‘ƒ•‹‰Ž‡‹‘‡””‹–‘”›Ǥ

CGST
Intra-State
SGST
GST

Inter-State IGST
 Lesson 12 Ȉ Basics of Goods and Services Tax 635

CONSTITUTIONAL FRAMEWORK OF GOODS & SERVICES TAX

‘™‡” –‘ Ž‡˜›
‘‘†• ƒ† ‡”˜‹…‡• ƒš ȋ
Ȍǡ Šƒ• „‡‡ …‘ˆ‡””‡† „› ”–‹…Ž‡ ʹͶ͸ ‘ˆ –Š‡ ‘•–‹–—–‹‘Ǥ Š‹• ™ƒ•
‹–”‘†—…‡†ǡ „› –Š‡ ‘•–‹–—–‹‘ ȋͳͲͳ•– ‡†‡–Ȍ …–ǡ ʹͲͳ͸Ǥ
 ‹• Ž‡˜‹‡† ‘ ƒŽŽ ‰‘‘†• ƒ† •‡”˜‹…‡• ‡š…‡’–
ƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘ƒ†’‡–”‘Ž‡—…”—†‡ǡ†‹‡•‡Žǡ’‡–”‘Žǡ ƒ†ƒ–—”ƒŽ‰ƒ•Ǥ
Presently not taxable under GST
”‡•’‡…–‘ˆ–Š‡‰‘‘†••Š‘™‹†‹ƒ‰”ƒǡ–Š‡’”‘˜‹•‹‘•ƒ”‘—†…Šƒ”‰‡ƒ„‹Ž‹–›‘ˆ
™‘—Ž†ƒ’’Ž›ˆ”‘–Š‡†ƒ–‡
™Š‡”‡…‘‡†‡†„›–Š‡
‘—…‹ŽǤ

Central
Excise
Duty

Š‡”‡ˆ‘”‡ǡ‡–”ƒŽš…‹•‡—–›…‘–‹—‡•–‘„‡Ž‡˜‹‡†‘ƒ—ˆƒ…–—”‡Ȁ’”‘†—…–‹‘ǡ‘ˆ‡–”‘Ž‡—”—†‡ǡ‹‰Š
’‡‡† ‹‡•‡Žǡ ‡–”‘Žǡ ƒ–—”ƒŽ
ƒ• ƒ† ˜‹ƒ–‹‘ —”„‹‡ —‡Ž ƒ† ‹–‡”Ǧ–ƒ–‡Ȁ‹–”ƒǦ–ƒ–‡ •ƒŽ‡ ‘ˆ –Š‡ •ƒ‡ ‹•
•—„Œ‡…––‘ȀǤ
Alcoholic Liquor for human consumption:
–ƒ–‡š…‹•‡—–›…‘–‹—‡•–‘„‡Ž‡˜‹‡†‘ƒ—ˆƒ…–—”‡Ȁ’”‘†—…–‹‘‘ˆƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘
ƒ†‹–‡”–ƒ–‡•ƒŽ‡‘ˆ–Š‡•ƒ‡‹••—„Œ‡…––‘Ȁ”‡•’‡…–‹˜‡Ž›Ǥ
Tobacco:

‹•Ž‡˜‹ƒ„Ž‡‘–‘„ƒ……‘Ǥ‘™‡˜‡”ǡ—‹‘‰‘˜‡”‡–Šƒ•”‡–ƒ‹‡†–Š‡’‘™‡”–‘Ž‡˜›‡š…‹•‡†—–‹‡•‘–‘„ƒ……‘ƒ†
–‘„ƒ……‘’”‘†—…–•ƒ—ˆƒ…–—”‡†‹†‹ƒǤ‡…‡‘„ƒ……‘ƒ––”ƒ…–•„‘–Šš…‹•‡ƒ†
Ǥ
Outside the scope of GST
‡–”‘Ž‡—”‘†—…–•ƒ†Ž…‘Š‘Ž‹…‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘‹•‡’–‘—–•‹†‡–Š‡ƒ„‹–‘ˆ
Ǥ††‹–‹‘ƒŽŽ›ǡ
–Š‘—‰Šǡ‡Ž‡…–”‹…‹–›Šƒ•‘–„‡‡‡š’Ž‹…‹–Ž›‡š…Ž—†‡†ˆ”‘
„—–‹–‹•…‘•‹†‡”‡†ƒ•‹Ž”ƒ–‡†‹
ƒ†…‘–‹—‡•
–‘„‡…Šƒ”‰‡†™‹–Š’”‡Ǧ
–ƒš‡•ǡ‹Ǥ‡Ǥǡ‡Ž‡…–”‹…‹–›†—–›„›–Š‡–ƒ–‡
‘˜‡”‡–•Ǥ
TAXABLE EVENT
Š‡…”—š‘ˆƒ›–ƒšƒ–‹‘•›•–‡‹•–Š‡‹…‹†‡…‡ǡ‹Ǥ‡Ǥǡ–Š‡’‘‹–ƒ–™Š‹…Š–Š‡Ž‹ƒ„‹Ž‹–›–‘…Šƒ”‰‡–ƒšƒ”‹•‡•ǡƒ†–Šƒ–
‡˜‡–‹•‘‡…Žƒ–‡†ƒ•–Š‡–ƒšƒ„Ž‡‡˜‡–Ǥ
 636 Lesson 12 Ȉ EP-TL

‘‘†• ƒ† ‡”˜‹…‡• ƒšǡ ™‹–Š ‹–• ‹–”‘†—…–‹‘ ƒ† ‹ –Š‡ ’”‘…‡•• ‘ˆ
•—„•—‹‰ –Š‡ ‘–Š‡” …–•ǡ Šƒ• ‘˜‡”…‘‡ ƒ› •Š‘”–…‘‹‰• ‘ˆ –Š‡
Ž‡‰ƒ…›•›•–‡–‘‘ǡ‘‡‘ˆ–Š‡„‡‹‰ǡ–Š‡†‡ϐ‹‹–‹‘‘ˆ–ƒšƒ„Ž‡‡˜‡–ǤŠ‡ Š‡ –ƒšƒ„Ž‡ ‡˜‡– ‹
 ‹• –Š‡
—Ž–‹–—†‡‘ˆ–ƒšŽƒ™•–Šƒ–’”‡˜ƒ‹Ž‡†‡ƒ”Ž‹‡”ǡ–Šƒ–‹•‡–”ƒŽš…‹•‡ǡƒŽ‡• —’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•”ƒ–Š‡”
ƒšǡ ‡”˜‹…‡ ƒšǡ  ‡–…Ǥǡ ™‡”‡ ’”‘‡ –‘ ƒ„‹‰—‹–› ƒ† …‘–”‘˜‡”•‹‡• –Šƒ•ƒŽ‡ǡƒ—ˆƒ…–—”‡ǡ’”‘†—…–‹‘
™Š‹…Š Šƒ• „‡‡ ‘˜‡”…‘‡ –‘ ƒ ‰”‡ƒ– ‡š–‡– „› –Š‡ …‘’”‡Š‡•‹˜‡ ‘ˆ‰‘‘†•ƒ†’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•Ǥ
ƒ’’”‘ƒ…Šƒ††‡ϐ‹‹–‹‘ƒ•Žƒ‹††‘™„›
Ǥ

Šƒ•‡’–‹–‘–‘Ž›•‹’Ž‡ǡ„—–ƒŽ•‘”‘„—•–ǡ„›•–ƒ–‹‰–Šƒ––Š‡‡–‹”‡
˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•ƒ”‡–ƒš‡†‹ƒ‹–‡‰”ƒ–‡†ƒ‡”Ǥ

CALCULATION OF GST

…ƒ„‡…ƒŽ…—Žƒ–‡†•‹’Ž›„›—Ž–‹’Ž›‹‰–Š‡ƒšƒ„Ž‡ƒ‘—–„›
”ƒ–‡Ǥˆ
Ƭ
Ȁ
‹•–‘„‡ƒ’’Ž‹‡†
–Š‡
ƒ†
„‘–Šƒ‘—–•ƒ”‡ŠƒŽˆ‘ˆ–Š‡–‘–ƒŽ
ƒ‘—–Ǥ
Goods and Services Tax = Taxable Amount x GST Rate
ˆ›‘—Šƒ˜‡–Š‡ƒ‘—–™Š‹…Š‹•ƒŽ”‡ƒ†›‹…Ž—†‹‰–Š‡
–Š‡›‘—…ƒ…ƒŽ…—Žƒ–‡–Š‡
‡š…Ž—†‹‰ƒ‘—–„›
„‡Ž‘™ˆ‘”—Žƒǣ
GST excluding amount = GST including amount / (1+ GST rate/100)
For example, GST including amount of a product in UP is Rs. 1180 and GST rate is 18%.

‡š…Ž—†‹‰ƒ‘—–αͳͳͺͲȀȋͳΪͳͺȀͳͲͲȌαͳͳͺͲȀͳǤͳͺαͳͲͲͲ
‹•…ƒŽ…—Žƒ–‡†‘–Š‡–”ƒ•ƒ…–‹‘ƒ‘—–ƒ†
‘–‘–Š‡Ǥ‘ǡ
‹••ǤͳͺͲǢ
‹••ǤͻͲƒ†
‹••ǤͻͲǤ
DEFINITIONS

¾ Goods [Section 2(52) of CGST Act, 2017]

Dz
‘‘†•ǯǯ‡ƒ•ǣ
9 every kind of movable property other than money and securities
9 „—–‹…Ž—†‡•
9 ƒ…–‹‘ƒ„Ž‡…Žƒ‹•ǡ‰”‘™‹‰…”‘’•ǡ‰”ƒ••ƒ†–Š‹‰•ƒ––ƒ…Š‡†–‘‘”ˆ‘”‹‰’ƒ”–‘ˆ–Š‡Žƒ†™Š‹…Šƒ”‡ƒ‰”‡‡†
–‘„‡•‡˜‡”‡†„‡ˆ‘”‡•—’’Ž›‘”—†‡”ƒ…‘–”ƒ…–‘ˆ•—’’Ž›Ǥ
¾ Money [Section 2(75) of CGST Act, 2017]
 ƒ•†‡ϐ‹‡†‹‡…–‹‘ʹȋ͹ͷȌDz‘‡›‡ƒ•†‹ƒŽ‡‰ƒŽ–‡†‡”‘”ƒ›ˆ‘”‡‹‰…—””‡…›ǡ…Š‡“—‡ǡ’”‘‹••‘”›
‘–‡ǡ„‹ŽŽ‘ˆ‡š…Šƒ‰‡ǡŽ‡––‡”‘ˆ…”‡†‹–ǡ†”ƒˆ–ǡ’ƒ›‘”†‡”ǡ–”ƒ˜‡ŽŽ‡”…Š‡“—‡ǡ‘‡›‘”†‡”ǡ’‘•–ƒŽ‘”‡Ž‡…–”‘‹…
”‡‹––ƒ…‡‘”ƒ›‘–Š‡”‹•–”—‡–”‡…‘‰‹œ‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ™Š‡—•‡†ƒ•…‘•‹†‡”ƒ–‹‘–‘
•‡––Ž‡ƒ‘„Ž‹‰ƒ–‹‘‘”‡š…Šƒ‰‡™‹–Š†‹ƒŽ‡‰ƒŽ–‡†‡”‘ˆƒ‘–Š‡”†‡‘‹ƒ–‹‘„—–•ŠƒŽŽ‘–‹…Ž—†‡ƒ›
…—””‡…›–Šƒ–‹•Š‡Ž†ˆ‘”‹–•—‹•ƒ–‹…˜ƒŽ—‡̶Ǥ
¾ Securities [Section 2(90) of CGST Act, 2017]

“securities” •ŠƒŽŽŠƒ˜‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹•—„Ǧ•‡…–‹‘ȋŠȌ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡‡…—”‹–‹‡•‘–”ƒ…–•ȋ‡‰—Žƒ–‹‘Ȍ
…–ǡͳͻͷ͸ȋͶʹ‘ˆͳͻͷ͸Ȍdz
†‡”‡…–‹‘ʹȋŠȌ‘ˆDz‡…—”‹–‹‡•dz‹…Ž—†‡Ȅ
Ȉ •Šƒ”‡•ǡ•…”‹’•ǡ•–‘…•ǡ„‘†•ǡ†‡„‡–—”‡•ǡ†‡„‡–—”‡•–‘…‘”‘–Š‡”ƒ”‡–ƒ„Ž‡•‡…—”‹–‹‡•‘ˆƒŽ‹‡ƒ–—”‡‹
‘”‘ˆƒ›‹…‘”’‘”ƒ–‡†…‘’ƒ›‘”‘–Š‡”„‘†›…‘”’‘”ƒ–‡Ǣ
Ȉ †‡”‹˜ƒ–‹˜‡Ǣ
Ȉ ‹–•‹••—‡†„›ƒ›‘ŽŽ‡…–‹˜‡˜‡•–‡–…Š‡‡–‘–Š‡‹˜‡•–‘”•‹•—…Š•…Š‡‡Ǣ
Ȉ ‡…—”‹–›”‡…‡‹’–ƒ•†‡ϐ‹‡†‹‡…–‹‘ʹȋœ‰Ȍ‘ˆ–Š‡‡…—”‹–‹•ƒ–‹‘ƒ†‡…‘•–”—…–‹‘‘ˆ ‹ƒ…‹ƒŽ••‡–•ƒ†
ˆ‘”…‡‡–‘ˆ‡…—”‹–›–‡”‡•–…–ǡʹͲͲʹǢ
 Lesson 12 Ȉ Basics of Goods and Services Tax 637

Ȉ ‹–•‘”ƒ›‘–Š‡”•—…Š‹•–”—‡–•‹••—‡†–‘–Š‡‹˜‡•–‘”•—†‡”ƒ›—–—ƒŽˆ—†•…Š‡‡Ǣ
Ȉ
‘˜‡”‡–‡…—”‹–‹‡•Ǣ
Ȉ —…Š‘–Š‡”‹•–”—‡–•ǡ”‹‰Š–•‘”‹–‡”‡•––Š‡”‡‹•ŠƒŽŽ„‡†‡…Žƒ”‡†„›–Š‡‰‘˜‡”‡––‘„‡•‡…—”‹–‹‡•„‡
†‡…Žƒ”‡†„›–Š‡‰‘˜‡”‡––‘„‡•‡…—”‹–‹‡•Ǥ

¾ Actionable Claim

‡…–‹‘ʹȋͳȌ‘ˆ
…–•–ƒ–‡•–Šƒ–ƒ…–‹‘ƒ„Ž‡…Žƒ‹••ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰ƒ••‹‰‡†–‘‹–‹•‡…–‹‘͵‘ˆ”ƒ•ˆ‡”‘ˆ
”‘’‡”–›…–ǡͳͺͺʹ.
•’‡”•‡…–‹‘͵‘ˆƒ„‘˜‡ƒ…–ǡƒ…–‹‘ƒ„Ž‡…Žƒ‹‡ƒ•ƒ…Žƒ‹•–‘ƒ›†‡„–ǡ‘–Š‡”–Šƒƒ†‡„–•‡…—”‡†„›‘”–‰ƒ‰‡
‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–›‘”„›Š›’‘–Š‡…ƒ–‹‘‘”’Ž‡†‰‡‘ˆ‘˜ƒ„Ž‡’”‘’‡”–›ǡ‘”„›ƒ›„‡‡ϐ‹…‹ƒŽ‹–‡”‡•–‹‘˜ƒ„Ž‡
’”‘’‡”–›ǡ‡‹–Š‡”ƒ…–—ƒŽ‘”…‘•–”—…–‹˜‡ǡ‘ˆ…Žƒ‹ƒ–ǡ™Š‹…Š–Š‡…‹˜‹Ž…‘—”–•”‡…‘‰‹•‡ƒ•ƒˆˆ‘”†‹‰‰”‘—†ˆ‘””‡Ž‹‡ˆǡ
™Š‡–Š‡”•—…Š†‡„–‘”„‡‡ϐ‹…‹ƒŽ‹–‡”‡•–„‡‡š‹•–‡–ǡƒ……”—‹‰ǡ…‘†‹–‹‘ƒŽ‘”…‘–‹‰‡–Ǥ
¾ “Services’’[Section 2(102) of CGST Act 2017] :‡ƒ•
Ȉ ƒ›–Š‹‰‘–Š‡”–Šƒ‰‘‘†•ǡ‘‡›ƒ†•‡…—”‹–‹‡•„—–‹…Ž—†‡•
Ȉ ƒ…–‹˜‹–‹‡•”‡Žƒ–‹‰–‘–Š‡—•‡‘ˆ‘‡›‘”
Ȉ ‹–•…‘˜‡”•‹‘„›…ƒ•Š‘”„›ƒ›‘–Š‡”‘†‡ǡ
Ȉ ˆ”‘ ‘‡ ˆ‘”ǡ …—””‡…› ‘” †‡‘‹ƒ–‹‘ǡ –‘ ƒ‘–Š‡” ˆ‘”ǡ …—””‡…› ‘” †‡‘‹ƒ–‹‘ ˆ‘” ™Š‹…Š ƒ
•‡’ƒ”ƒ–‡…‘•‹†‡”ƒ–‹‘‹•…Šƒ”‰‡†Ǣ
Explanation 1‡”˜‹…‡•‹…Ž—†‡–”ƒ•ƒ…–‹‘•‹‘‡›„—–†‘‡•‘–‹…Ž—†‡‘‡›ƒ†•‡…—”‹–‹‡•Ǥ‡ƒ‹‰
–Š‡”‡„›–Šƒ–‹ˆ–”ƒ•ƒ…–‹‘‹•†‘‡™‹–Š‘—–ƒ›•‡’ƒ”ƒ–‡…Šƒ”‰‡Ȁ…‘•‹†‡”ƒ–‹‘‘•‡”˜‹…‡Ǥ
Explanation 2—––”ƒ•ƒ…–‹‘‹‘‡›”‡Žƒ–‹‰–‘–Š‡—•‡‘ˆ‘‡›‘”‹–•…‘˜‡”•‹‘„›…ƒ•Š‘”„›ƒ›
‘–Š‡”‘†‡ǡˆ”‘‘‡ˆ‘”ǡ…—””‡…›‘”†‡‘‹ƒ–‹‘ǡ–‘ƒ‘–Š‡”ˆ‘”ǡ…—””‡…›‘”†‡‘‹ƒ–‹‘for which
a separate consideration is charged then it is service.

Consideration [Section 2(31) of CGST Act 2017]

‡…–‹‘ʹȋ͵ͳȌǮconsiderationǮ‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‹…Ž—†‡•ȂȂ
ȋƒȌ ƒ›’ƒ›‡–ƒ†‡‘”–‘„‡ƒ†‡ǡ™Š‡–Š‡”‹‘‡›‘”‘–Š‡”™‹•‡ǡ‹”‡•’‡…–‘ˆǡ‹”‡•’‘•‡–‘ǡ‘”ˆ‘”–Š‡
‹†—…‡‡–‘ˆǡ–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ™Š‡–Š‡”„›–Š‡”‡…‹’‹‡–‘”„›ƒ›‘–Š‡”’‡”•‘„—–
•ŠƒŽŽ‘–‹…Ž—†‡ƒ›•—„•‹†›‰‹˜‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–Ǣ
ȋ„Ȍ –Š‡ ‘‡–ƒ”› ˜ƒŽ—‡ ‘ˆ ƒ› ƒ…– ‘” ˆ‘”„‡ƒ”ƒ…‡ǡ ‹ ”‡•’‡…– ‘ˆǡ ‹ ”‡•’‘•‡ –‘ǡ ‘” ˆ‘” –Š‡ ‹†—…‡‡– ‘ˆǡ –Š‡
•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ™Š‡–Š‡”„›–Š‡”‡…‹’‹‡–‘”„›ƒ›‘–Š‡”’‡”•‘„—–•ŠƒŽŽ‘–‹…Ž—†‡ƒ›
•—„•‹†›‰‹˜‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘”ƒ–ƒ–‡
‘˜‡”‡–Ǥ
 ”‘˜‹†‡†–Šƒ–ƒ†‡’‘•‹–‰‹˜‡‹”‡•’‡…–‘ˆ–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•ŠƒŽŽ‘–„‡…‘•‹†‡”‡†ƒ•
’ƒ›‡–ƒ†‡ˆ‘”•—…Š•—’’Ž›—Ž‡••–Š‡•—’’Ž‹‡”ƒ’’Ž‹‡••—…Š†‡’‘•‹–ƒ•…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡•ƒ‹†•—’’Ž›Ǣ

Business [Section 2(17) of CGST Act 2017]

Dz—•‹‡••dz‹…Ž—†‡•Ȃ
ȋƒȌ ƒ› –”ƒ†‡ǡ …‘‡”…‡ǡ ƒ—ˆƒ…–—”‡ǡ ’”‘ˆ‡••‹‘ǡ ˜‘…ƒ–‹‘ǡ ƒ†˜‡–—”‡ǡ ™ƒ‰‡” ‘” ƒ› ‘–Š‡” •‹‹Žƒ” ƒ…–‹˜‹–›ǡ
™Š‡–Š‡”‘”‘–‹–‹•ˆ‘”ƒ’‡…—‹ƒ”›„‡‡ϐ‹–Ǣ
ȋ„Ȍ ƒ›ƒ…–‹˜‹–›‘”–”ƒ•ƒ…–‹‘‹…‘‡…–‹‘™‹–Š‘”‹…‹†‡–ƒŽ‘”ƒ…‹ŽŽƒ”›–‘ȋƒȌƒ„‘˜‡Ǣ
ȋ…Ȍ ƒ›ƒ…–‹˜‹–›‘”–”ƒ•ƒ…–‹‘‹–Š‡ƒ–—”‡‘ˆȋƒȌƒ„‘˜‡ǡ™Š‡–Š‡”‘”‘––Š‡”‡‹•˜‘Ž—‡ǡˆ”‡“—‡…›ǡ…‘–‹—‹–›‘”
”‡‰—Žƒ”‹–›‘ˆ•—…Š–”ƒ•ƒ…–‹‘Ǣ
ȋ†Ȍ •—’’Ž›‘”ƒ…“—‹•‹–‹‘‘ˆ‰‘‘†•‹…Ž—†‹‰…ƒ’‹–ƒŽƒ••‡–•ƒ†•‡”˜‹…‡•‹…‘‡…–‹‘™‹–Š…‘‡…‡‡–‘”
…Ž‘•—”‡‘ˆ„—•‹‡••Ǣ
ȋ‡Ȍ ’”‘˜‹•‹‘„›ƒ…Ž—„ǡƒ••‘…‹ƒ–‹‘ǡ•‘…‹‡–›ǡ‘”ƒ›•—…Š„‘†›ȋˆ‘”ƒ•—„•…”‹’–‹‘‘”ƒ›‘–Š‡”…‘•‹†‡”ƒ–‹‘Ȍ‘ˆ
–Š‡ˆƒ…‹Ž‹–‹‡•‘”„‡‡ϐ‹–•–‘‹–•‡„‡”•ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǣ
 638 Lesson 12 Ȉ EP-TL

ȋˆȌ ƒ†‹••‹‘ǡˆ‘”ƒ…‘•‹†‡”ƒ–‹‘ǡ‘ˆ’‡”•‘•–‘ƒ›’”‡‹•‡•Ǣƒ†
ȋ‰Ȍ •‡”˜‹…‡••—’’Ž‹‡†„›ƒ’‡”•‘ƒ•–Š‡Š‘Ž†‡”‘ˆƒ‘ˆϐ‹…‡™Š‹…ŠŠƒ•„‡‡ƒ……‡’–‡†„›Š‹‹–Š‡…‘—”•‡‘”
ˆ—”–Š‡”ƒ…‡‘ˆŠ‹•–”ƒ†‡ǡ’”‘ˆ‡••‹‘‘”˜‘…ƒ–‹‘Ǣ
ȋŠȌ •‡”˜‹…‡•’”‘˜‹†‡†„›ƒ”ƒ…‡…Ž—„„›™ƒ›‘ˆ–‘–ƒŽ‹œƒ–‘”‘”ƒŽ‹…‡•‡–‘„‘‘ƒ‡”‹•—…Š…Ž—„Ǣ
ȋ‹Ȍ ›ƒ…–‹˜‹–›‘”–”ƒ•ƒ…–‹‘—†‡”–ƒ‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡƒ–ƒ–‡
‘˜‡”‡–‘”ƒ›Ž‘…ƒŽƒ—–Š‘”‹–›
‹™Š‹…Š–Š‡›ƒ”‡‡‰ƒ‰‡†ƒ•’—„Ž‹…ƒ—–Š‘”‹–‹‡•Ǥ

CONCEPT OF SUPPLY
(a) Generic meaning of ‘supply’: —’’Ž› ‹…Ž—†‡• ƒŽŽ ˆ‘”• ‘ˆ •—’’Ž› ȋ‰‘‘†• ƒ† Ȁ ‘” •‡”˜‹…‡•Ȍ ƒ† ‹…Ž—†‡•
ƒ‰”‡‡‹‰–‘•—’’Ž›™Š‡–Š‡•—’’Ž›‹•ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘ƒ†‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••ȋƒ•†‡ϐ‹‡†
—†‡”‡…–‹‘͹‘ˆ–Š‡…–ȌǤ–•’‡…‹ϐ‹…ƒŽŽ›’”‘˜‹†‡•ˆ‘”–Š‡‹…Ž—•‹‘‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ͺ…Žƒ••‡•‘ˆ–”ƒ•ƒ…–‹‘•ǣ
(i) Sale
 ƒŽ‡ ‹• ƒ Žƒ™ˆ—Žǡ ’‡”ƒ‡– ƒ† ƒ„•‘Ž—–‡ –”ƒ•ˆ‡” ‘ˆ ‘™‡”•Š‹’ ‘ˆ ’”‘’‡”–› ‹ ‰‘‘†• ˆ‘” ‘‡›
…‘•‹†‡”ƒ–‹‘—†‡”ƒ˜ƒŽ‹†…‘–”ƒ…–•—…Š–Šƒ–‘”‹‰Š–•ƒ”‡Ž‡ˆ–„‡Š‹†™‹–Š–Š‡–”ƒ•ˆ‡”‘”Ǣ
(ii) Transfer
 ”ƒ•ˆ‡”‹•–‘Žƒ™ˆ—ŽŽ›…‘˜‡›’”‘’‡”–›ˆ”‘‘‡’‡”•‘–‘ƒ‘–Š‡”Ǥ‡”‡ǡ…‘•‡–‘ˆ–”ƒ•ˆ‡”‘”ƒ†
…ƒ’ƒ…‹–› ‘ˆ –”ƒ•ˆ‡”‡‡ ‡‡† ‘– „‡ ’”‡•‡– ƒŽ–Š‘—‰Š ƒŽŽ ‘–Š‡” ‹‰”‡†‹‡–• ‘ˆ ƒ Žƒ™ˆ—Ž …‘–”ƒ…– ƒ”‡
‹…—„‡–Ǣ
(iii) Barter
 ƒ”–‡”‹•™Š‡”‡–Š‡…‘•‹†‡”ƒ–‹‘‹•‹–Š‡ˆ‘”‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ȋƒ†‘–‹‘‡›Ȍˆ‘”ƒ•ƒŽ‡‘”
–”ƒ•ˆ‡”Ǥ‘‹‰‡‡”ƒŽǡ„ƒ”–‡”‹•‹–•‡Žˆ‘–ƒ•—’’Ž›„—––Š‡ˆ‘”–Šƒ–…‘•‹†‡”ƒ–‹‘–ƒ‡•Ǥ—–ǡ™Š‡
„ƒ”–‡”‹•…ƒŽŽ‡†‘‡‘ˆ–Š‡ˆ‘”•‘ˆ•—’’Ž›ǡ‹–…‘˜‡”•‘–Š‡”ˆ‘”•‘ˆ•—’’Ž›™Š‘•‡…‘•‹†‡”ƒ–‹‘‹•‘Ǧ
‘‡–ƒ”›ǤŠ‡”‡ˆ‘”‡ǡ„ƒ”–‡”™‹ŽŽ‹˜‘Ž˜‡–™‘•—’’Ž‹‡•ƒ†‘–‘‡Ǥƒ…Š‘ˆ–Š‡•‡•—’’Ž‹‡•™‘—Ž†‡‡†
–‘„‡‡šƒ‹‡†ˆ‘”‹–•”‡•’‡…–‹˜‡–ƒšƒ„‹Ž‹–›Ǣ
(iv) Exchange
 š…Šƒ‰‡ ‹• ™Š‡”‡ …‘•‹†‡”ƒ–‹‘ ‹• •–‹ŽŽ ‘– ‹ ‘‡› „—– ‹ –Š‡ ˆ‘” ‘ˆ ‹‘˜ƒ„Ž‡ ’”‘’‡”–› (CIT v.
Motors and General Stores Pvt Ltd AIR 1968 SC 200)Ǥ‹‹Žƒ”–‘„ƒ”–‡”ǡ‡š…Šƒ‰‡ƒŽ•‘‹˜‘Ž˜‡•–™‘•—’’Ž‹‡•Ǥ

‹˜‡–Šƒ–Žƒ†ƒ†ȋ…‘’Ž‡–‡†Ȍ„—‹Ž†‹‰‹•‡š…Ž—†‡†ˆ”‘•—’’Ž›ǡ‡š…Šƒ‰‡™‘—Ž†„‡–Š‡•—’’Ž›™Š‘•‡
…‘•‹†‡”ƒ–‹‘‹•‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ†–Š‡‘„Œ‡…–‘ˆ•—’’Ž›‹–•‡Žˆƒ›„‡‘ˆ‰‘‘†•‘”‘ˆ•‡”˜‹…‡•Ǣ
(v) License
 ‹…‡•‡‹••‹‹Žƒ”–‘Ž‡ƒ•‡‡š…‡’––Šƒ–’‘••‡••‹‘‹•‘––”ƒ•ˆ‡””‡†„—–‡”‡’‡”‹••‹‘–‘‡–‡”ƒ†
—•‡ –Š‡ ’”‘’‡”–› ȋ‘˜ƒ„Ž‡ ‘” ‹‘˜ƒ„Ž‡Ȍ ‹• ƒŽŽ‘™‡† ƒŽ‘‰ ™‹–Š ƒŽŽ ‘–Š‡” ‹‰”‡†‹‡–• ‘ˆ ƒ Ž‡ƒ•‡Ǥ
—’’Ž‹‡”‘ˆƒŽ‹…‡•‡”‡–ƒ‹•’‘••‡••‹‘‘ˆ–Š‡’”‘’‡”–›†—”‹‰–Š‡–‡”‘ˆŽ‹…‡•‡™‹–Š‘—–”‹‰Š––‘—•‡
ȋ‹ˆŽ‹…‡•‡’”‡…Ž—†‡•Œ‘‹–—•‡ȌǤ†ƒˆ–‡”‡š’‹”›‘ˆ–Š‡–‡”‘ˆŽ‹…‡•‡‘”‘–‡”‹ƒ–‹‘‘ˆŽ‹…‡•‡ǡ–Š‡
Ž‹…‡•‡‡™‹ŽŽ„‡ƒ–”‡•’ƒ••‡”Ǣ
(vi) Rental
 ‡–ƒŽ‹•Ž‡ƒ•‡‹”‡•’‡…–‘ˆ‘˜ƒ„Ž‡’”‘’‡”–›Ǥ†•‹…‡”‡…—””‹‰’ƒ›‡–‹Ž‡ƒ•‡ȋ‘ˆ‹‘˜ƒ„Ž‡
’”‘’‡”–›Ȍ‹•…ƒŽŽ‡†”‡–ƒŽǡ–”ƒ•ˆ‡”‘ˆ’‘••‡••‹‘™‹–Š—•‡””‹‰Š–•ˆ‘””‡…—””‹‰’ƒ›‡–‘ˆ…‘•‹†‡”ƒ–‹‘
‹•‹–‡”…Šƒ‰‡ƒ„Ž›ƒ’’Ž‹‡†ˆ‘”‘˜ƒ„Ž‡ƒ†‹‘˜ƒ„Ž‡’”‘’‡”–›Ǣ
(vii) Lease
 ‡ƒ•‡‹•™Š‡”‡’‘••‡••‹‘‹•–”ƒ•ˆ‡””‡†ƒŽ‘‰™‹–Š–Š‡”‹‰Š––‘—•‡‹‘˜ƒ„Ž‡’”‘’‡”–›™‹–Šƒ†—–›
–‘…ƒ”‡ǡ’”‘–‡…–ƒ†”‡–—”•—„Œ‡…––‘‘”ƒŽ™‡ƒ”ƒ†–‡ƒ”ƒŽ‘‰ˆ‘”…‘•‹†‡”ƒ–‹‘‹–Š‡ˆ‘”‘ˆ‘Ǧ
”‡…—””‹‰’”‡‹—‘Ž›‘”ƒŽ‘‰™‹–Š”‡…—””‹‰”‡–Ǥ••‡…‡‘ˆŽ‡ƒ•‡„‡‹‰†‡Ž‹˜‡”›‘ˆ’‘••‡••‹‘
ƒŽ‘‰™‹–Š—•‡””‹‰Š–•‹•–Š‡”‡ƒ•‘Ž‡ƒ•‡‹•ƒŽ•‘—•‡†‹–Š‡…‘–‡š–‘ˆ‘˜ƒ„Ž‡’”‘’‡”–›ȋ—†‡”–Š‡
‡ƒ”Ž‹‡”Žƒ™•ȌǤ—’’Ž‹‡”‘ˆƒŽ‡ƒ•‡†‘‡•‘–Šƒ˜‡’‘••‡••‹‘Š‡…‡‘–‡Œ‘›–Š‡”‹‰Š––‘—•‡„—–”‡–ƒ‹•
”‹‰Š––‘”‡’‘••‡••ƒˆ–‡”–‡”‘ˆŽ‡ƒ•‡Ǥ‡ƒ•‡‹•†‹•…—••‡†ϐ‹”•––‘…‘–”ƒ•–‹–™‹–Š”‡–ƒŽƒ†Ž‹…‡•‡Ǣ
 Lesson 12 Ȉ Basics of Goods and Services Tax 639

(viii) Disposal
 ‹•’‘•ƒŽ‹••ƒŽ‡‘”–”ƒ•ˆ‡”„—–’”‘’‡”–›–Šƒ–†‘‡•‘–’‘••‡••‡”…Šƒ–ƒ„Ž‡™ƒ””ƒ–›Ǥ”–‹…Ž‡•–Šƒ–ƒ”‡
‘–‡”…Šƒ–ƒ„Ž‡ƒ”‡‘–Ǯϐ‹–ˆ‘”•ƒŽ‡ǯ„—––”ƒ†‡†‘‡•–ƒ‡’Žƒ…‡ˆ‘”–Š‡”‡ƒ•‘–Šƒ––Š‡•—’’Ž‹‡”†‹•’‘•‡•
–Š‡ƒ”–‹…Ž‡™‹–Š‘—–ƒ•…”‹„‹‰ƒ›™‘”–Š„—––Š‡”‡…‹’‹‡–ƒ……‡’–•–Š‡ƒ”–‹…Ž‡ˆ‘”•‘‡‹–”‹•‹…™‘”–Š
–Šƒ–Š‡‹•ƒ„Ž‡–‘‡š–”ƒ…–‘”‘„–ƒ‹Ǥ

—’’Ž›‹•–Š‡’‘‹–‘ˆ–ƒšƒ–‹‘‘”–Š‡–ƒšƒ„Ž‡‡˜‡–—†‡”
‘‘†•Ƭ‡”˜‹…‡•ƒšǤŠ‡‡ƒ‹‰ƒ†•…‘’‡‘ˆ•—’’Ž›‹
–‡”•‘ˆ•‡…–‹‘͹‘ˆ–Š‡
…–ʹͲͳ͹‹•ƒ•—†‡”ǣ
ͳǤ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…–ǡ–Š‡‡š’”‡••‹‘Dz•—’’Ž›dz‹…Ž—†‡•ȂȂ
ȋƒȌ ƒŽŽˆ‘”•‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•—…Šƒ••ƒŽ‡ǡ–”ƒ•ˆ‡”ǡ„ƒ”–‡”ǡ‡š…Šƒ‰‡ǡŽ‹…‡…‡ǡ”‡–ƒŽǡ
Ž‡ƒ•‡‘”†‹•’‘•ƒŽƒ†‡‘”ƒ‰”‡‡†–‘„‡ƒ†‡ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘„›ƒ’‡”•‘‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡
‘ˆ„—•‹‡••Ǣ
ȋ„Ȍ ‹’‘”–‘ˆ•‡”˜‹…‡•ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘™Š‡–Š‡”‘”‘–‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǣ ƒ†
ȋ…Ȍ –Š‡ƒ…–‹˜‹–‹‡••’‡…‹ϐ‹‡†‹…Š‡†—Ž‡ǡƒ†‡‘”ƒ‰”‡‡†–‘„‡ƒ†‡™‹–Š‘—–ƒ…‘•‹†‡”ƒ–‹‘Ǣ
(1A) Where certain activities or transactions constitute a supply in accordance with the provisions of sub-
section (1), they shall be treated either as supply of goods or supply of services as referred to in
Schedule II.
ʹǤ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌǡȂȂ
ȋƒȌ ƒ…–‹˜‹–‹‡•‘”–”ƒ•ƒ…–‹‘••’‡…‹ϐ‹‡†‹…Š‡†—Ž‡Ǣ‘”
ȋ„Ȍ •—…Šƒ…–‹˜‹–‹‡•‘”–”ƒ•ƒ…–‹‘•—†‡”–ƒ‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡƒ–ƒ–‡
‘˜‡”‡–‘”ƒ›Ž‘…ƒŽ
ƒ—–Š‘”‹–›‹™Š‹…Š–Š‡›ƒ”‡‡‰ƒ‰‡†ƒ•’—„Ž‹…ƒ—–Š‘”‹–‹‡•ǡƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡
”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ•ŠƒŽŽ„‡–”‡ƒ–‡†‡‹–Š‡”ƒ•ƒ•—’’Ž›‘ˆ‰‘‘†•‘”ƒ•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ
͵Ǥ —„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆsub-sections (1), (1A) and (2), –Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•
‘ˆ–Š‡‘—…‹Žǡ•’‡…‹ˆ›ǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ–Š‡–”ƒ•ƒ…–‹‘•–Šƒ–ƒ”‡–‘„‡–”‡ƒ–‡†ƒ•Ȅ
ȋƒȌ ƒ•—’’Ž›‘ˆ‰‘‘†•ƒ†‘–ƒ•ƒ•—’’Ž›‘ˆ•‡”˜‹…‡•Ǣ‘”
ȋ„Ȍ ƒ•—’’Ž›‘ˆ•‡”˜‹…‡•ƒ†‘–ƒ•ƒ•—’’Ž›‘ˆ‰‘‘†•Ǥ
 Š‡‡ƒ‹‰ƒ†•…‘’‡‘ˆ•—’’Ž›‹–‡”•‘ˆ•‡…–‹‘͹…ƒ„‡—†‡”•–‘‘†™‹–Š–Š‡Š‡Ž’‘ˆˆ‘ŽŽ‘™‹‰’ƒ”ƒ‡–‡”•ǣ
ͳȌ —’’Ž›•Š‘—Ž†„‡‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǥ›–Š‹‰™Š‹…Š‹•‘–‰‘‘†•Ȁ•‡”˜‹…‡•ȋŽ‹‡‘‡›ǡ•‡…—”‹–‹‡•
‡–…ǤȌ†‘‡•‘–ƒ––”ƒ…–
Ǥ
Ȉ –—•–„‡”‡‹–‡”ƒ–‡†–Šƒ–‘Ž›‘˜ƒ„Ž‡’”‘’‡”–›‹•…‘•–”—‡†ƒ•‰‘‘†•
Ȉ ƒ”–‡”•ƒ†‡š…Šƒ‰‡•™‘—Ž†„‡Ž‡˜‹ƒ„Ž‡–‘

Ȉ ‹…‡…‡•ǡŽ‡ƒ•‡•ǡ”‡–ƒŽ•™‹–Š‘”™‹–Š‘—––”ƒ•ˆ‡”‘ˆ–Š‡”‹‰Š––‘—•‡ƒ”‡…‘•‹†‡”‡†ƒ••—’’Ž›ƒ†
Ž‡˜‹ƒ„Ž‡–‘
Ǥ
ʹȌ —’’Ž›•Š‘—Ž†„‡ƒ†‡ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘™Š‹…Š…‘—Ž†„‡‹–Š‡ˆ‘”‘ˆ‘‡›‘”‘–Š‡”™‹•‡
Ȉ —’’Ž›‹…Ž—†‡•–Š‡ϐŽ‘™‘ˆ‘‡›ˆ”‘ƒ͵”†’ƒ”–›‹Ž‹‡—‘ˆ‘„‡ŠƒŽˆ‘ˆ–Š‡”‡…‹’‹‡–
Ȉ ‡’‘•‹–‹•‘–…‘•‹†‡”ƒ–‹‘—Ž‡•••’‡…‹ϐ‹…ƒŽŽ›ƒ’’Ž‹‡†–‘„›–Š‡•—’’Ž‹‡”
 Donation received by charitable institutions from individual donors without quid pro-quo:
An important feature of consideration is quid pro-quo [something in return]. Donation received by
charitable institutions. Donations received by the charitable orgnisation are treated as consideration
only if there exist quid pro quo, i.e, there is an obligation on part of recipient of the donation or gift to
do anything (supply a service).
 †‹˜‹†—ƒŽ†‘‘”•’”‘˜‹†‡ϐ‹ƒ…‹ƒŽŠ‡Ž’‘”ƒ›‘–Š‡”•—’’‘”–‹–Š‡ˆ‘”‘ˆ†‘ƒ–‹‘‘”‰‹ˆ––‘‹•–‹–—–‹‘•
•—…Šƒ•”‡Ž‹‰‹‘—•‹•–‹–—–‹‘•ǡ…Šƒ”‹–ƒ„Ž‡‘”‰ƒ‹•ƒ–‹‘•ǡ•…Š‘‘Ž•ǡŠ‘•’‹–ƒŽ•ǡ‘”’Šƒƒ‰‡•ǡ‘Ž†ƒ‰‡Š‘‡•‡–…ǤŠ‡
”‡…‹’‹‡–‹•–‹–—–‹‘•’Žƒ…‡ƒƒ‡’Žƒ–‡‘”•‹‹Žƒ”•—…Šƒ…‘™Ž‡†‰‡‡–‹–Š‡‹”’”‡‹•‡•–‘‡š’”‡••–Š‡
‰”ƒ–‹–—†‡Ǥ
 640 Lesson 12 Ȉ EP-TL

 Š‡–Š‡ƒ‡‘ˆ–Š‡†‘‘”‹•†‹•’Žƒ›‡†‹”‡…‹’‹‡–‹•–‹–—–‹‘’”‡‹•‡•ǡ‹•—…Šƒƒ‡”ǡ™Š‹…Š…ƒ„‡
•ƒ‹†–‘„‡ƒ‡š’”‡••‹‘‘ˆ‰”ƒ–‹–—†‡ƒ†’—„Ž‹…”‡…‘‰‹–‹‘‘ˆ†‘‘”ǯ•ƒ…–‘ˆ’Š‹Žƒ–Š”‘’›ƒ†‹•‘–ƒ‹‡†ƒ–
‰‹˜‹‰’—„Ž‹…‹–›–‘–Š‡†‘‘”‹•—…Šƒ‡”–Šƒ–‹–™‘—Ž†„‡ƒƒ†˜‡”–‹•‹‰‘”’”‘‘–‹‘‘ˆŠ‹•„—•‹‡••ǡ
–Š‡‹–…ƒ„‡•ƒ‹†–Šƒ––Š‡”‡‹•‘•—’’Ž›‘ˆ•‡”˜‹…‡ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘ȋ‹–Š‡ˆ‘”‘ˆ†‘ƒ–‹‘ȌǤŠ‡”‡‹•‘
‘„Ž‹‰ƒ–‹‘ (quid pro quo) on ’ƒ”– ‘ˆ ”‡…‹’‹‡– ‘ˆ –Š‡ †‘ƒ–‹‘ ‘” ‰‹ˆ– –‘ †‘ ƒ›–Š‹‰ ȋ•—’’Ž› ƒ •‡”˜‹…‡ȌǤ
Š‡”‡ˆ‘”‡ǡ–Š‡”‡‹•‘
Ž‹ƒ„‹Ž‹–›‘•—…Š…‘•‹†‡”ƒ–‹‘Ǥ
͵Ȍ —’’Ž›•Š‘—Ž†„‡ƒ†‡‹–Š‡…‘—”•‡‘ˆˆ‘”–Š‡ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǥ
Ȉ ›•—’’Ž›ƒ†‡ˆ‘”’‡”•‘ƒŽ…‘•—’–‹‘‹’‡”•‘ƒŽ…ƒ’ƒ…‹–›†‘‡•‘–ƒ––”ƒ…–
Ǥ
Ȉ —’’Ž›•Š‘—Ž†„‡ƒ†‡„›ƒ–ƒšƒ„Ž‡’‡”•‘Ǥ
Ȉ —’’Ž›„‡–™‡‡„‘–Š‘Ǧ–ƒšƒ„Ž‡’ƒ”–‹‡•‹•‘–Ž‡˜‹ƒ„Ž‡–‘
Ǥ
Ȉ —’’Ž›…‘—Ž†„‡ƒ†‡–‘ƒ‘Ǧ–ƒšƒ„Ž‡’‡”•‘ƒŽ•‘Ǥ
Ȉ –ƒšƒ„Ž‡’‡”•‘‹•‘‡™Š‘‹•”‡‰‹•–‡”‡†‹•Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†—†‡”–Š‡…–Ǥ

Activities without consideration treated as deemed supply

Schedule I:
Š‡”‡ƒ”‡ƒˆ‡™–”ƒ•ƒ…–‹‘•™Š‹…Šǡ‡˜‡™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ƒ”‡…‘•–”—‡†ƒ••—’’Ž›ǡƒŽ•‘‘™ƒ•†‡‡‡†
•—’’Ž‹‡•ƒ••’‡…‹ϐ‹‡†‹…Š‡†—Ž‡ǣ

‡”ƒ‡– –”ƒ•ˆ‡” ‘” †‹•’‘•ƒŽ ‘ˆ „—•‹‡•• ƒ••‡–• ™Š‡”‡

‹’—––ƒš…”‡†‹–Šƒ•„‡‡ƒ˜ƒ‹Ž‡†‘•—…Šƒ••‡–•

—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Š„‡–™‡‡”‡Žƒ–‡†’‡”•‘•‘”
„‡–™‡‡ †‹•–‹…– ’‡”•‘• ƒ• •’‡…‹ϐ‹‡† ‹ •‡…–‹‘ ʹͷǡ ™Š‡
ƒ†‡‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••ǣ
”‘˜‹†‡† –Šƒ– ‰‹ˆ–• ‘– ‡š…‡‡†‹‰ ϐ‹ˆ–› –Š‘—•ƒ† ”—’‡‡• ‹
˜ƒŽ—‡‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”„›ƒ‡’Ž‘›‡”–‘ƒ‡’Ž‘›‡‡•ŠƒŽŽ
‘–„‡–”‡ƒ–‡†ƒ••—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ

—’’Ž›‘ˆ‰‘‘†•„›ƒ’”‹…‹’ƒŽ–‘Š‹•ƒ‰‡–™Š‡”‡–Š‡ƒ‰‡–
—†‡”–ƒ‡•–‘•—’’Ž›•—…Š‰‘‘†•‘„‡ŠƒŽˆ‘ˆ–Š‡’”‹…‹’ƒŽ

—’’Ž›‘ˆ‰‘‘†•„›ƒƒ‰‡––‘Š‹•’”‹…‹’ƒŽ™Š‡”‡–Š‡ƒ‰‡–
—†‡”–ƒ‡•–‘”‡…‡‹˜‡•—…Š‰‘‘†•‘„‡ŠƒŽˆ‘ˆ–Š‡’”‹…‹’ƒŽ

’‘”–‘ˆ•‡”˜‹…‡•„›ƒ’‡”•‘ˆ”‘ƒ”‡Žƒ–‡†’‡”•‘‘”ˆ”‘
ƒ›‘ˆŠ‹•‘–Š‡”‡•–ƒ„Ž‹•Š‡–•‘—–•‹†‡†‹ƒ

•’‡”…Š‡†—Ž‡ǡ‹–Š‡ˆ‘ŽŽ‘™‹‰ˆ‘—”…ƒ•‡•ǡƒ…–‹˜‹–‹‡•ƒ†‡™‹–Š‘—–…‘•‹†‡”ƒ–‹‘™‹ŽŽ„‡–”‡ƒ–‡†ƒ••—’’Ž›—†‡”
•‡…–‹‘͹‘ˆ–Š‡
…–ǣ
 Lesson 12 Ȉ Basics of Goods and Services Tax 641

(1) Permanent transfer or disposal of business assets where input tax credit has been availed on such
assets. [Para 1 of Schedule I]:
 ‘”†‡”–‘“—ƒŽ‹ˆ›ƒ••—’’Ž›—†‡”–Š‹•’ƒ”ƒǡˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•‡‡†–‘„‡•ƒ–‹•ϐ‹‡†ǣ
Ȉ Š‡”‡—•–„‡ƒ†‹•’‘•ƒŽ‘”–”ƒ•ˆ‡”‘ˆ„—•‹‡••ƒ••‡–•Ǥ
Ȉ ”ƒ•ˆ‡”Ȁ†‹•’‘•ƒŽ—•–„‡’‡”ƒ‡–Ǥ
Ȉ —•–Šƒ˜‡„‡‡ƒ˜ƒ‹Ž‡†‘•—…Š„—•‹‡••ƒ••‡–•Ǥ
(2) Supply of goods or services or both between related persons or between distinct persons as•’‡…‹ϐ‹‡†
in section 25 [Para 2 of Schedule I]:
 Š‡ †‡‡‡† •—’’Ž‹‡• …‘˜‡”‡† ‹ –Š‹• ’ƒ”ƒ‰”ƒ’Š ƒ”‡ „ƒ•‡† ‘ ƒ ”‡Žƒ–‹‘•Š‹’ „‡–™‡‡ –Š‡ •—’’Ž‹‡” ƒ†
”‡…‹’‹‡–ǤŠ‡”‡Žƒ–‹‘•Š‹’…‘˜‡”‡†—†‡”–Š‹•’ƒ”ƒ‰”ƒ’Šƒ•”‡Žƒ–‡†’‡”•‘•†‡ϐ‹‡†„›™ƒ›‘ˆƒ‡š’Žƒƒ–‹‘
–‘‡…–‹‘ͳͷƒ††‹•–‹…–’‡”•‘•‹–‡”•‘ˆ‡…–‹‘ʹͷȋͶȌƒ†ʹͷȋͷȌ‘ˆ–Š‡…–Ǥ
Meaning of Related Person:
‡”•‘•‹…Ž—†‹‰Ž‡‰ƒŽ’‡”•‘ƒ”‡†‡‡‡†ƒ•”‡Žƒ–‡†’‡”•‘•‹ˆǣ
Ȉ —…Š’‡”•‘•ƒ”‡‘ˆϐ‹…‡”•Ȁ†‹”‡…–‘”•‘ˆ‘‡ƒ‘–Š‡”ǯ•„—•‹‡••
Ȉ „—•‹‡••‡•Ž‡‰ƒŽŽ›”‡…‘‰‹•‡†ƒ•’ƒ”–‡”•
Ȉ —…Š’‡”•‘•ƒ”‡‡’Ž‘›‡”Ƭ‡’Ž‘›‡‡
Ȉ –Š‹”†’‡”•‘…‘–”‘Ž•Ȁ‘™•ȀŠ‘Ž†•ȋ†‹”‡…–Ž›Ȁ‹†‹”‡…–Ž›ȌηʹͷΨ˜‘–‹‰•–‘…Ȁ•Šƒ”‡•‘ˆ„‘–Š‘ˆ–Š‡
Ȉ ‡‘ˆ–Š‡…‘–”‘Ž•ȋ†‹”‡…–Ž›Ȁ‹†‹”‡…–Ž›Ȍ–Š‡‘–Š‡”
Ȉ –Š‹”†’‡”•‘…‘–”‘Ž•ȋ†‹”‡…–Ž›Ȁ‹†‹”‡…–Ž›Ȍ„‘–Š‘ˆ–Š‡
Ȉ —…Š’‡”•‘•–‘‰‡–Š‡”…‘–”‘Žȋ†‹”‡…–Ž›Ȁ‹†‹”‡…–Ž›Ȍƒ–Š‹”†’‡”•‘
Ȉ —…Š’‡”•‘•ƒ”‡‡„‡”•‘ˆ–Š‡•ƒ‡ˆƒ‹Ž›
Ȉ ‡‘ˆ–Š‡‹•–Š‡•‘Ž‡ƒ‰‡–Ȁ•‘Ž‡†‹•–”‹„—–‘”Ȁ•‘Ž‡…‘…‡••‹‘ƒ‹”‡‘ˆ–Š‡‘–Š‡”Ǥ
Meaning of Distinct Person [Section 25]
 ‡…–‹‘ʹͷȋͶȌ‘ˆ–Š‡
…–ǣ’‡”•‘™Š‘Šƒ•‘„–ƒ‹‡†Ȁ‹•”‡“—‹”‡†–‘‘„–ƒ‹‘”‡–Šƒ‘‡”‡‰‹•–”ƒ–‹‘ǡ
™Š‡–Š‡”‹‘‡–ƒ–‡Ȁ‹‘–‡””‹–‘”›‘”‘”‡–Šƒ‘‡–ƒ–‡Ȁ‹‘–‡””‹–‘”›•ŠƒŽŽǡ‹”‡•’‡…–‘ˆ‡ƒ…Š•—…Š
”‡‰‹•–”ƒ–‹‘ǡ„‡–”‡ƒ–‡†ƒ•†‹•–‹…–’‡”•‘•Ǥ
 ‡…–‹‘ʹͷȋͷȌ‘ˆ–Š‡
…–ǣŠ‡”‡ƒ’‡”•‘™Š‘Šƒ•‘„–ƒ‹‡†‘”‹•”‡“—‹”‡†–‘‘„–ƒ‹”‡‰‹•–”ƒ–‹‘‹ƒ
–ƒ–‡ ‘” ‹‘ –‡””‹–‘”› ‹ ”‡•’‡…– ‘ˆ ƒ ‡•–ƒ„Ž‹•Š‡–ǡ Šƒ• ƒ ‡•–ƒ„Ž‹•Š‡– ‹ ƒ‘–Š‡” –ƒ–‡ ‘” ‹‘
–‡””‹–‘”›ǡ–Š‡•—…Š‡•–ƒ„Ž‹•Š‡–••ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•‡•–ƒ„Ž‹•Š‡–•‘ˆ†‹•–‹…–’‡”•‘•Ǥ
 –ƒ›ƒŽ•‘„‡‘–‡†–Šƒ–ƒ‰‹ˆ–‡‡†‘–ƒŽ™ƒ›•„‡‹–‡”•‘ˆ‰‘‘†•Ǥ•‡”˜‹…‡…ƒƒŽ•‘…‘•–‹–—–‡ƒ‰‹ˆ–ǡ•—…Š
ƒ•‰‹ˆ–˜‘—…Š‡”•ˆ‘”ƒ„‡ƒ—–›–”‡ƒ–‡–Ǥ
 —‡•–‹‘™Š‹…Šƒ”‹•‡•–Šƒ–‹•‘™Šƒ–˜ƒŽ—‡™‹ŽŽ–Š‡
Ž‹ƒ„‹Ž‹–›„‡…ƒŽ…—Žƒ–‡†‹…ƒ•‡–Š‡‰‹ˆ–ƒ‘—–‡š…‡‡†•
•ǤͷͲǡͲͲͲȀǦǤ Ž–Š‘—‰Š ‹– ‹• ‘– ‡š’”‡••Ž› ‡–‹‘‡† ‹ –Š‡
 …–Ǥ —– ƒ ”‡ƒ•‘ƒ„Ž‡ …‘•–”—…–‹‘ …ƒ „‡
†”ƒ™–Šƒ–
•ŠƒŽŽ„‡Ž‡˜‹‡†‘–Š‡™Š‘Ž‡ƒ‘—–‹…ƒ•‡–Š‡‰‹ˆ–ƒ‘—–‡š…‡‡†••ǤͷͲǡͲͲͲȀǦǤ
(3) Principal – Agent [Para 3 of Schedule I]:
 —’’Ž›‘ˆ‰‘‘†•„›ƒ’”‹…‹’ƒŽ–‘Š‹•ƒ‰‡–ƒ†˜‹…‡Ǧ˜‡”•ƒǡ™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ǡ™Š‡”‡–Š‡ƒ‰‡–—†‡”–ƒ‡•
–‘•—’’Ž›•—…Š‰‘‘†•‘„‡ŠƒŽˆ‘ˆ–Š‡’”‹…‹’ƒŽƒ†˜‹…‡Ǧ˜‡”•ƒǡ‹•…‘•‹†‡”‡†ƒ••—’’Ž›Ǥ
Šƒ•…Žƒ”‹ϐ‹‡†„›™ƒ›‘ˆ‹”…—Žƒ”‘Ǥͷ͹Ȁ͵ͳȀʹͲͳͺǦ
Ǥ
…‘’‡‘ˆ”‹…‹’ƒŽǦƒ‰‡–”‡Žƒ–‹‘•Š‹’‹–Š‡…‘–‡š–‘ˆ…Š‡†—Ž‡‘ˆ–Š‡
…–Ǥ
 642 Lesson 12 Ȉ EP-TL

Example 1:
”Ǥƒ’’‘‹–•”Ǥ–‘’”‘…—”‡…‡”–ƒ‹‰‘‘†•ˆ”‘–Š‡ƒ”‡–Ǥ”Ǥ‹†‡–‹ϐ‹‡•˜ƒ”‹‘—••—’’Ž‹‡”•™Š‘…ƒ’”‘˜‹†‡
–Š‡‰‘‘†•ƒ•†‡•‹”‡†„›”Ǥǡƒ†ƒ••–Š‡•—’’Ž‹‡”ȋ”ǤȌ–‘•‡†–Š‡‰‘‘†•ƒ†‹••—‡–Š‡‹˜‘‹…‡†‹”‡…–Ž›–‘”Ǥ
Ǥ–Š‹••…‡ƒ”‹‘ǡ”Ǥ‹•‘Ž›ƒ…–‹‰ƒ•–Š‡
ǡƒ†Šƒ•‹‘™ƒ›‹˜‘Ž˜‡†Š‹•‡Žˆ‹–Š‡
•—’’Ž›‘””‡…‡‹’–‘ˆ–Š‡‰‘‘†•Ǥ‡…‡ǡ‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ”Ǥ‹•‘–ƒƒ‰‡–‘ˆ”Ǥ
ˆ‘”•—’’Ž›‘ˆ‰‘‘†•‹–‡”•‘ˆ…Š‡†—Ž‡Ǥ
Example 2:
Ȁ•ǡƒ„ƒ‹‰…‘’ƒ›ǡƒ’’‘‹–•”Ǥȋƒ—…–‹‘‡‡”Ȍ–‘ƒ—…–‹‘…‡”–ƒ‹‰‘‘†•ǤŠ‡ƒ—…–‹‘‡‡”ƒ””ƒ‰‡•ˆ‘”
–Š‡ƒ—…–‹‘ƒ†‹†‡–‹ϐ‹‡•–Š‡’‘–‡–‹ƒŽ„‹††‡”•Ǥ
Š‡Š‹‰Š‡•–„‹†‹•ƒ……‡’–‡†ƒ†–Š‡‰‘‘†•ƒ”‡•‘Ž†–‘–Š‡Š‹‰Š‡•–„‹††‡”„›Ȁ•ǤŠ‡‹˜‘‹…‡ˆ‘”–Š‡•—’’Ž›
‘ˆ–Š‡‰‘‘†•‹•‹••—‡†„›Ȁ•–‘–Š‡•—……‡••ˆ—Ž„‹††‡”Ǥ
–Š‹••…‡ƒ”‹‘ǡ–Š‡ƒ—…–‹‘‡‡”‹•‡”‡Ž›’”‘˜‹†‹‰–Š‡ƒ—…–‹‘‡‡”‹‰•‡”˜‹…‡•™‹–Š‘”‘Ž‡’Žƒ›‡†‹–Š‡•—’’Ž›
‘ˆ–Š‡‰‘‘†•Ǥ˜‡‹–Š‹••…‡ƒ”‹‘ǡ‹•‘–ƒƒ‰‡–‘ˆȀ•ˆ‘”–Š‡•—’’Ž›‘ˆ‰‘‘†•‹–‡”•‘ˆƒ”ƒ͵Ǥ‘ˆ
…Š‡†—Ž‡
Example 3:
”Ǥǡƒƒ”–‹•–ǡƒ’’‘‹–•”Ǥȋƒ—…–‹‘‡‡”Ȍ–‘ƒ—…–‹‘Š‹•’ƒ‹–‹‰Ǥ”Ǥƒ””ƒ‰‡•ˆ‘”–Š‡ƒ—…–‹‘ƒ†‹†‡–‹ϐ‹‡•
–Š‡’‘–‡–‹ƒŽ„‹††‡”•ǤŠ‡Š‹‰Š‡•–„‹†‹•ƒ……‡’–‡†ƒ†–Š‡’ƒ‹–‹‰‹••‘Ž†–‘–Š‡Š‹‰Š‡•–„‹††‡”ǤŠ‡‹˜‘‹…‡ˆ‘”
–Š‡ •—’’Ž› ‘ˆ –Š‡ ’ƒ‹–‹‰ ‹• ‹••—‡† „› ”Ǥ  ‘ –Š‡ „‡ŠƒŽˆ ‘ˆ ”Ǥ  „—– ‹ Š‹• ‘™ ƒ‡ ƒ† –Š‡ ’ƒ‹–‹‰ ‹•
†‡Ž‹˜‡”‡†–‘–Š‡•—……‡••ˆ—Ž„‹††‡”Ǥ–Š‹••…‡ƒ”‹‘ǡ”Ǥ‹•‘–‡”‡Ž›’”‘˜‹†‹‰ƒ—…–‹‘‡‡”‹‰•‡”˜‹…‡•ǡ„—–‹•
ƒŽ•‘•—’’Ž›‹‰–Š‡’ƒ‹–‹‰‘„‡ŠƒŽˆ‘ˆ”Ǥ–‘–Š‡„‹††‡”ǡƒ†Šƒ•–Š‡ƒ—–Š‘”‹–›–‘–”ƒ•ˆ‡”–Š‡–‹–Ž‡‘ˆ–Š‡
’ƒ‹–‹‰‘„‡ŠƒŽˆ‘ˆ”ǤǤŠ‹••…‡ƒ”‹‘‹•…‘˜‡”‡†—†‡”…Š‡†—Ž‡Ǥ

Import of Services [Para 4 of Schedule I]

’‘”–‘ˆ•‡”˜‹…‡•„›ƒ’‡”•‘ˆ”‘ƒ”‡Žƒ–‡†’‡”•‘‘”ˆ”‘Š‹•‡•–ƒ„Ž‹•Š‡–•Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒǡ™‹–Š‘—–
…‘•‹†‡”ƒ–‹‘ǡ‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡•••ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•Dz•—’’Ž›dzǤ
Schedule II:
…Š‡†—Ž‡‘ˆ–Š‡‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹Ž‹•–•ƒ…–‹˜‹–‹‡•‘”–”ƒ•ƒ…–‹‘•™Š‹…Šƒ”‡–‘„‡–”‡ƒ–‡†ƒ•
•—’’Ž›‘ˆ‰‘‘†•‘”•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ

Form of Supply Description

Supply of Goods ”ƒ•ˆ‡”‘ˆ–‹–Ž‡‹‰‘‘†•Ǥ
Example:‘ˆ‡ŽŠ‹†‡ƒŽ•‹Ž‡…–”‘‹…
‘‘†•Ǥ‡–”ƒ•ˆ‡”•–Š‡–‹–Ž‡‘ˆƒ–‡Ž‡˜‹•‹‘
•‡– ˆ‘” ƒ ƒ‰”‡‡† …‘•‹†‡”ƒ–‹‘ –‘  ‘ˆ ‡ŽŠ‹ ‹
ƒǤ ʹͲʹͲǤ  –Š‡ ‰‹˜‡ …ƒ•‡ǡ –Š‡
–”ƒ•ˆ‡”‘ˆ–‹–Ž‡‹–‡Ž‡˜‹•‹‘•ŠƒŽŽ„‡…‘•‹†‡”‡†ƒ••—’’Ž›‘ˆ‰‘‘†•Ǥ
Supply of Goods ”ƒ•ˆ‡”‘ˆ–‹–Ž‡‹‰‘‘†•—†‡”ƒƒ‰”‡‡‡–™Š‡”‡’”‘’‡”–›‹‰‘‘†•’ƒ••‡•ƒ–
ƒˆ—–—”‡†ƒ–‡‘’ƒ›‡–‘ˆˆ—ŽŽ…‘•‹†‡”ƒ–‹‘Ǥ
Example: †‡”ƒ•…Š‡‡‘ˆϐ‹ƒ…‡ǡƒ•—’’Ž‹‡”‘ˆƒ…ƒ”‰‹˜‡•–Š‡’‘••‡••‹‘‘ˆ
…ƒ”–‘–Š‡„—›‡”‹ƒ”…ŠʹͲʹͲǤ‡ǡƒ‰”‡‡•–‘–”ƒ•ˆ‡”–Š‡‘™‡”•Š‹’‘ˆ–Š‡…ƒ”–‘
–Š‡„—›‡”‹—‰—•–ʹͲʹͲ—’‘’ƒ›‡–‘ˆˆ—ŽŽ…‘•‹†‡”ƒ–‹‘‘ˆ•Ǥʹ͸ǡ͸ͲǡͲͲͲ‹
‹•–ƒŽ‡–• ƒ• ƒ‰”‡‡†Ǥ Š‡ ƒˆ‘”‡•ƒ‹† –”ƒ•ƒ…–‹‘ •ŠƒŽŽ „‡ –”‡ƒ–‡† ƒ• •—’’Ž› ‘ˆ
‰‘‘†•Ǥ
Lesson 12 Ȉ Basics of Goods and Services Tax
Supply of Goods
Supply of Goods
Supply of Services
Supply of Services
ƒ ʹͲʹͲǤ Š‡ ƒˆ‘”‡•ƒ‹† Ž‡ƒ•‡ ‘ˆ Žƒ†
Supply of Services
643
‡”ƒ‡––”ƒ•ˆ‡”‘”†‹•’‘•ƒŽ‘ˆ‰‘‘†•ˆ‘”‹‰’ƒ”–‘ˆ„—•‹‡••ƒ••‡–•„›‘”
—†‡”–Š‡†‹”‡…–‹‘•‘ˆ–Š‡’‡”•‘…ƒ””›‹‰‘–Š‡„—•‹‡••™Š‡–Š‡”‘”‘–ˆ‘”
…‘•‹†‡”ƒ–‹‘Ǥ
Example :
‹•…ƒ””›‹‰‘–Š‡„—•‹‡••‘ˆ…‘•—‡”†—”ƒ„Ž‡’”‘†—…–•Ǥ‡†‹•’‘•‡†‘ˆƒ
†‡ˆ‡…–‹˜‡”‡ˆ”‹‰‡”ƒ–‘”ˆ‘”•ǤͷͲǡͲͲͲ–‘™Š‡”‡ƒ•‹–•‘”ƒŽ’”‹…‡‹••Ǥ͵ǡͷͲǡͲͲͲǤ
ˆ‘”‡•ƒ‹††‹•’‘•ƒŽ•ŠƒŽŽ„‡…‘•‹†‡”‡†ƒ••—’’Ž›‘ˆ‰‘‘†•„›Ǥ
›‰‘‘†•ˆ‘”‹‰ƒ’ƒ”–‘ˆ„—•‹‡••ƒ••‡–•™‹ŽŽ„‡†‡‡‡†–‘„‡–”ƒ•ˆ‡””‡†‹
ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••ǡ„‡ˆ‘”‡ƒ›’‡”•‘…‡ƒ•‡•–‘„‡ƒ–ƒšƒ„Ž‡’‡”•‘Ǥ
Exception
Ȉ Š‡„—•‹‡••‹•–”ƒ•ˆ‡””‡†ƒ•ƒ‰‘‹‰…‘…‡”
Ȉ Š‡„—•‹‡••‹•…ƒ””‹‡†‘„›ƒ’‡”•‘ƒŽ”‡’”‡•‡–ƒ–‹˜‡™Š‘‹•†‡‡‡†–‘
„‡ƒ–ƒšƒ„Ž‡’‡”•‘Ǥ
—’’Ž› ‘ˆ ‰‘‘†• „› ƒ› —‹…‘”’‘”ƒ–‡† ƒ••‘…‹ƒ–‹‘ ‘” „‘†› ‘ˆ ’‡”•‘• –‘ ƒ
‡„‡”–Š‡”‡‘ˆˆ‘”…ƒ•Šǡ†‡ˆ‡””‡†’ƒ›‡–‘”‘–Š‡”˜ƒŽ—ƒ„Ž‡…‘•‹†‡”ƒ–‹‘Ǥ
›–”ƒ•ˆ‡”‘ˆ”‹‰Š–‹‰‘‘†•‘”—†‹˜‹†‡†•Šƒ”‡‹‰‘‘†•™‹–Š‘—––”ƒ•ˆ‡”‘ˆ–‹–Ž‡Ǥ
Example: –”ƒ•ˆ‡”•”‹‰Š––‘—•‡‘ˆƒ‰‡‡”ƒ–‘”ˆ‘”ƒ’‡”‹‘†‘ˆʹ‘–Š•ˆ‘”ƒ
ƒ‰”‡‡† …‘•‹†‡”ƒ–‹‘ –‘  ‹ ‡„ǡ ʹͲʹͲǤ Š‡ ˆ‘”‡‰‘‹‰ –”ƒ•ˆ‡” ‘ˆ ‰‡‡”ƒ–‘”
™‹–Š‘—––”ƒ•ˆ‡”‘ˆ–‹–Ž‡‹‰‡‡”ƒ–‘”•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ•—’’Ž›‘ˆ•‡”˜‹…‡Ǥ
›Ž‡ƒ•‡ǡ–‡ƒ…›ǡ‡ƒ•‡‡–ǡŽ‹…‡…‡–‘‘……—’›Žƒ†Ǥ
Example:–Š‡‘™‡”‘ˆƒ•’‡…‹ϐ‹…’‹‡…‡‘ˆŽƒ†‹‡ŽŠ‹ǡŽ‡ƒ•‡•–Š‡•ƒ‡–‘ˆ‘”
‘‡ ›‡ƒ” ˆ‘” ƒ ƒ‰”‡‡† …‘•‹†‡”ƒ–‹‘ ‹
•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ
› Ž‡ƒ•‡ ‘” Ž‡––‹‰ ‘—– ‘ˆ –Š‡ „—‹Ž†‹‰ ‹…Ž—†‹‰ ƒ …‘‡”…‹ƒŽǡ ‹†—•–”‹ƒŽ ‘”
”‡•‹†‡–‹ƒŽ…‘’Ž‡šˆ‘”„—•‹‡••‘”…‘‡”…‡ǡ‡‹–Š‡”™Š‘ŽŽ›‘”’ƒ”–Ž›Ǥ
›–”‡ƒ–‡–‘”’”‘…‡••™Š‹…Š‹•ƒ’’Ž‹‡†–‘ƒ‘–Š‡”’‡”•‘ǯ•‰‘‘†•Ǥ
Example:‹•ƒƒ—ˆƒ…–—”‡”‘ˆ‰‘‘†•Ǥ‡•‡†•Š‹•‰‘‘†•ˆ‘”–Š‡’—”’‘•‡‘ˆ
Supply of Services
ƒ—ƒ”› ʹͲʹͲ ƒ† –Š‡”‡ƒˆ–‡” …‘’—–‡” ‹•
Supply of Services
Supply of Services
•’‡…‹ƒŽ ’ƒ…ƒ‰‹‰ –‘  ‘ Œ‘„ ™‘”Ǥ  –Š‡ ‰‹˜‡ …ƒ•‡ǡ –Š‡ ƒ…–‹˜‹–› ‘ˆ •’‡…‹ƒŽ
’ƒ…‹‰„›•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ••—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ —”–Š‡”ǡ‹–•ŠƒŽŽ„‡‹ƒ–‡”‹ƒŽ
™Š‡–Š‡”—•‡•Š‹•‘™’ƒ…‹‰ƒ–‡”‹ƒŽ‘”–Š‡•ƒ‡‹•’”‘˜‹†‡†„›Ǥ
Š‡”‡ǡ„›‘”—†‡”–Š‡†‹”‡…–‹‘‘ˆƒ’‡”•‘…ƒ””›‹‰‘ƒ„—•‹‡••ǡ‰‘‘†•Š‡Ž†
ƒ•ƒ••‡–•‘”—•‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ„—•‹‡••ƒ”‡’—–ˆ‘”ƒ›’”‹˜ƒ–‡—•‡‘”ƒ†‡
ƒ˜ƒ‹Žƒ„Ž‡–‘ƒ›’‡”•‘ˆ‘”ƒ›—•‡‘–Š‡”–Šƒˆ‘”–Š‡’—”’‘•‡‘ˆ„—•‹‡••ǡƒ––Š‡
†‹”‡…–‹‘ ‘ˆ –Š‡ ’‡”•‘ …ƒ””›‹‰ ‘ –Š‡ „—•‹‡••ǡ ™Š‡–Š‡” ‘” ‘– ˆ‘” ƒ
…‘•‹†‡”ƒ–‹‘Ǥ
Example:†‡ƒŽ•‹Š‘‡ƒ’’Ž‹ƒ…‡•Ž‹‡™ƒ•Š‹‰ƒ…Š‹‡•ǡ”‡ˆ”‹‰‡”ƒ–‘”ǡ‡–…Ǥ‡
—•‡•…‘’—–‡”•‹Š‹••Š‘’•ˆ‘”‡‡’‹‰–”ƒ…‘ˆ‹˜‡–‘”›ƒ†ˆ‘”‘–Š‡”„—•‹‡••
’—”’‘•‡•Ǥ—–‘ˆʹ…‘’—–‡”•ǡ–ƒ‡•Š‘‡‘‡…‘’—–‡”–‘„‡—•‡†„›Š‹••‘
ˆ‘” Š‹• •–—†‹‡• †—”‹‰ –Š‡ ‘–Š ‘ˆ
„”‘—‰Š–„ƒ…–‘–Š‡•Š‘™”‘‘‘ˆǤŠ‡ƒˆ‘”‡•ƒ‹†’”‹˜ƒ–‡—•‡‘ˆƒ…‘’—–‡”„›
ȀŠ‹••‘•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒǮ•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥǯ
‡–‹‰‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ
‘•–”—…–‹‘‘ˆƒ…‘’Ž‡šǡ„—‹Ž†‹‰ǡ…‹˜‹Ž•–”—…–—”‡‘”ƒ’ƒ”––Š‡”‡‘ˆǡ‹…Ž—†‹‰ƒ
…‘’Ž‡š‘”„—‹Ž†‹‰‹–‡†‡†ˆ‘”•ƒŽ‡–‘ƒ„—›‡”ǡ™Š‘ŽŽ›‘”’ƒ”–Ž›ǡ‡š…‡’–™Š‡”‡
–Š‡ ‡–‹”‡ …‘•‹†‡”ƒ–‹‘ Šƒ• „‡‡ ”‡…‡‹˜‡† ƒˆ–‡” ‹••—ƒ…‡ ‘ˆ …‘’Ž‡–‹‘
…‡”–‹ϐ‹…ƒ–‡ǡ ™Š‡”‡ ”‡“—‹”‡†ǡ „› –Š‡ …‘’‡–‡– ƒ—–Š‘”‹–› ‘” ƒˆ–‡” ‹–• ϐ‹”•–
‘……—’ƒ–‹‘ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
 644 Lesson 12 Ȉ EP-TL

Supply of Services ‡’‘”ƒ”›–”ƒ•ˆ‡”‘”’‡”‹––‹‰–Š‡—•‡‘”‡Œ‘›‡–‘ˆƒ›‹–‡ŽŽ‡…–—ƒŽ’”‘’‡”–›

”‹‰Š–Ǥ
Supply of Services ‡˜‡Ž‘’‡– †‡•‹‰ǡ ’”‘‰”ƒ‹‰ǡ …—•–‘‹•ƒ–‹‘ǡ ƒ†ƒ’–ƒ–‹‘ǡ —’‰”ƒ†ƒ–‹‘ǡ
‡Šƒ…‡‡–ǡ‹’Ž‡‡–ƒ–‹‘‘ˆ‹ˆ‘”ƒ–‹‘–‡…Š‘Ž‘‰›•‘ˆ–™ƒ”‡.
Supply of Services ‰”‡‡‹‰ –‘ –Š‡ ‘„Ž‹‰ƒ–‹‘ –‘ ”‡ˆ”ƒ‹ ˆ”‘ ƒ ƒ…–ǡ ‘” –‘ –‘Ž‡”ƒ–‡ ƒ ƒ…– ‘” ƒ
•‹–—ƒ–‹‘ǡ‘”–‘†‘ƒƒ…–Ǥ
Example:
™Š‘‹•‹–‡”‡•–‡†‹–ƒ‹‰Ž‘ƒˆ”‘•‘‡„ƒ„—–†‘‡•‘–Šƒ˜‡ƒ›…‘ŽŽƒ–‡”ƒŽ
•‡…—”‹–›ǡƒ’’”‘ƒ…Š‡•™Š‘ƒ‰”‡‡•–‘‘”–‰ƒ‰‡Š‹•’”‘’‡”–›ƒ•…‘ŽŽƒ–‡”ƒŽ•‡…—”‹–›
–‘ –Š‡ „ƒ ˆ‘” ƒ†˜ƒ…‹‰ Ž‘ƒ –‘  Ǥ …Šƒ”‰‡• •‘‡…‘•‹†‡”ƒ–‹‘ ˆ”‘  ˆ‘”
’”‘˜‹†‹‰•—…Š…‘ŽŽƒ–‡”ƒŽ•‡…—”‹–›Ǥ‘•‹†‡”ƒ–‹‘”‡…‡‹˜‡†„›•ŠƒŽŽ„‡…‘˜‡”‡†
—†‡”–Š‡•…‘’‡‘ˆ–Š‹•‡–”›ƒ†•ŠƒŽŽ„‡•—„Œ‡…––‘–ƒšƒ•ƒ•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ
Supply of Services ”ƒ•ˆ‡”‘ˆ–Š‡”‹‰Š––‘—•‡ƒ›‰‘‘†•ˆ‘”ƒ›’—”’‘•‡ȋ™Š‡–Š‡”‘”‘–ˆ‘”ƒ
•’‡…‹ϐ‹‡†’‡”‹‘†Ȍˆ‘”…ƒ•Šǡ†‡ˆ‡””‡†’ƒ›‡–‘”‘–Š‡”˜ƒŽ—ƒ„Ž‡…‘•‹†‡”ƒ–‹‘Ǥ
Supply of Services ‘”•‘–”ƒ…–ƒ•†‡ϐ‹‡†—†‡”‡…–‹‘ʹȋͳͳͻȌǤ
—’’Ž›‘ˆ‰‘‘†•ǡƒ•ƒ’ƒ”–‘ˆƒ›•‡”˜‹…‡‘”‹ƒ›ƒ‡”ǡ„‡‹‰ˆ‘‘†‘”ƒ›‘–Š‡”
ƒ”–‹…Ž‡ ˆ‘” Š—ƒ …‘•—’–‹‘ ‘” ƒ› †”‹ ȋ‘–Š‡” –Šƒ ƒŽ…‘Š‘Ž‹… Ž‹“—‘” ˆ‘”
Š—ƒ…‘•—’–‹‘Ȍǡ™Š‡”‡•—…Š•—’’Ž›‘”•‡”˜‹…‡‹•ˆ‘”…ƒ•Š†‡ˆ‡””‡†’ƒ›‡–
‘”‘–Š‡”˜ƒŽ—ƒ„Ž‡…‘•‹†‡”ƒ–‹‘Ǥ

Schedule III:
Š‡”‡ƒ”‡ƒˆ‡™ƒ…–‹˜‹–‹‡•™Š‹…Šƒ”‡•’‡…‹ϐ‹…ƒŽŽ›‘––‘„‡…‘•‹†‡”‡†ƒ•—’’Ž›Ǥ…Š‡†—Ž‡–‘
…–ǡʹͲͳ͹Ž‹•–•
†‘™–Š‡ˆ‘ŽŽ‘™‹‰ƒ…–‹˜‹–‹‡•™Š‹…Š•ŠƒŽŽ„‡–”‡ƒ–‡†‡‹–Š‡”ƒ••—’’Ž›‘ˆ‰‘‘†•‘”•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ

Services from
Employee to Employer
Duties performed by any
Supply of goods by the consignee person as a Chairperson or a
to any other person, by Member or a Director in a
endorsement of documents of body established by the
title to the goods, after the goods Central Government or a State
have been dispatched from the Government or local
port of origin located outside authority and who is not
India but before clearance for deemed as an employee
home consumption before the commencement of
this clause

Functions performed by
Supply of warehoused goods to Members of Parliament,
any person before clearance for Members of State
home consumption. Legislature, Members of
Note: “warehoused goods” shall Panchayats, Members of
have the same meaning as Municipalities and
assigned to it in the Customs Act, Members of other local
1962 authorities

Duties performed by
any person who holds
any post in pursuance
Supply of goods from a place of the provisions of the
in the non-taxable territory to Constitution in that
another place in the non- capacity
taxable territory without such
goods entering into India
Services by any
Court ribunal
Note : he term
Court includes
Actionable claims, District Court, igh
other than lottery, Court Supreme
Court
betting and gambling.
Funeral, burial,
Sale of land and,
crematorium or
sub ect to clause b of
mortuary including
paragraph of
transportation of the
Schedule II, sale of
deceased
building
 Lesson 12 Ȉ Basics of Goods and Services Tax 645

Š‡”‡ƒ”‡…‡”–ƒ‹ƒ…–‹˜‹–‹‡•™Š‹…Šƒ”‡‹–‡•‘–…‘˜‡”‡†—†‡”
ǤŠ‡›ƒ”‡„‡›‘†–Š‡•…‘’‡‘ˆ
ǡ‹Ǥ‡Ǥǡ
™‹ŽŽ
‘–ƒ’’Ž›‘–Š‡ǤŠ‡•‡ƒ”‡…Žƒ••‹ϐ‹‡†—†‡”…Š‡†—Ž‡‘ˆ–Š‡
…–ƒ•Dz‡‹–Š‡”‰‘‘†•‘”•‡”˜‹…‡•dzǤ
¾ Services by an employee to the employer in relation to his employment
 ‡Žƒ–‡†’ƒ”–‹‡•‹…Ž—†‡‡’Ž‘›‡”Ǧ‡’Ž‘›‡‡™Š‹…Š”ƒ‹•‡†ƒ›…‘…‡”•™Š‡–Š‡”‡’Ž‘›‡–‘™ƒ––”ƒ…–‡†

Ǥ Š‹• …Žƒ”‹ϐ‹…ƒ–‹‘ Šƒ• „‡‡ „”‘—‰Š– ‹ –‘ …Žƒ”‹ˆ› ™Š‡–Š‡”
 ‹• ‘– ƒ’’Ž‹…ƒ„Ž‡ ‘ ‡’Ž‘›‡–Ǥ 
‡’Ž‘›‡‡™‹ŽŽ•–‹ŽŽ’ƒ›‹…‘‡–ƒš‘•ƒŽƒ”›‡ƒ”‡†Ǥ
 Ž›‡”˜‹…‡•–Šƒ–ƒ”‡’”‘˜‹†‡†„›–Š‡‡’Ž‘›‡‡–‘–Š‡‡’Ž‘›‡”‹–Š‡…‘—”•‡‘ˆ‡’Ž‘›‡–ƒ”‡‘—–•‹†‡–Š‡
”‡ƒŽ ‘ˆ •—’’Ž›Ǥ ‘™‡˜‡”ǡ •‡”˜‹…‡• ’”‘˜‹†‡† ‘—–•‹†‡ –Š‡ ƒ„‹– ‘ˆ ‡’Ž‘›‡– ˆ‘” ƒ …‘•‹†‡”ƒ–‹‘ ™‘—Ž†
“—ƒŽ‹ˆ›ƒ••—’’Ž›Ǥ
¾ Services by any Court including District Court, High Court and Supreme Court
‘—”–•‘””‹„—ƒŽ‡•–ƒ„Ž‹•Š‡†—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡™‹ŽŽ‘–„‡…Šƒ”‰‡ƒ„Ž‡–‘
Ǥ
¾ Duties performed by:
Ȉ Š‡‡„‡”•‘ˆƒ”Ž‹ƒ‡–ǡ–ƒ–‡‡‰‹•Žƒ–—”‡ǡƒ…Šƒ›ƒ–•ǡ—‹…‹’ƒŽ‹–‹‡•ƒ†‘–Š‡”Ž‘…ƒŽƒ—–Š‘”‹–‹‡•
Ȉ ›’‡”•‘™Š‘Š‘Ž†•ƒ›’‘•–‹’—”•—ƒ…‡‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘•–‹–—–‹‘‹–Šƒ–…ƒ’ƒ…‹–›
Ȉ ›’‡”•‘ƒ•ƒŠƒ‹”’‡”•‘Ȁ‡„‡”Ȁ‹”‡…–‘”‹ƒ„‘†›‡•–ƒ„Ž‹•Š‡†„›–Š‡‡–”ƒŽ‰‘˜‡”‡–‘”
–ƒ–‡
‘˜‡”‡–‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›ƒ†™Š‘‹•‘–†‡‡‡†ƒ•ƒ‡’Ž‘›‡‡„‡ˆ‘”‡–Š‡…‘‡…‡‡–
‘ˆ–Š‹•…Žƒ—•‡Ǥ
¾ Services of a funeral, burial, crematorium or mortuary including transportation of the deceased
Š‡”‡ƒ”‡‘–ƒš‡•‘ˆ—‡”ƒŽ•‡”˜‹…‡•ˆ‘”ƒ›”‡Ž‹‰‹‘Ǥ
¾ Sale of land and subject to paragraph 5(b) of Schedule II, sale of building
‘•–”—…–‹‘‘ˆƒ‡™„—‹Ž†‹‰‹••—„Œ‡…––‘
ȋ„‡‹‰™‘”•…‘–”ƒ…–ȌǤ
¾ Actionable claims (other than lottery, betting and gambling)
 …–‹‘ƒ„Ž‡Žƒ‹•ǯ‡ƒ•…Žƒ‹•™Š‹…Š…ƒ„‡‡ˆ‘”…‡†‘Ž›„›ƒŽ‡‰ƒŽƒ…–‹‘‘”ƒ•—‹–ǡ‡šƒ’Ž‡ƒ„‘‘†‡„–ǡ
„‹ŽŽ‘ˆ‡š…Šƒ‰‡ǡ’”‘‹••‘”›‘–‡Ǥ„‘‘†‡„–ȋ†‡„–‘”Ȍ‹•‘–‰‘‘†•„‡…ƒ—•‡‹–…ƒ„‡–”ƒ•ˆ‡””‡†ƒ•’‡”
”ƒ•ˆ‡” ‘ˆ ”‘’‡”–› …– „—– …ƒ‘– „‡ •‘Ž†Ǥ ‹ŽŽ ‘ˆ ‡š…Šƒ‰‡ǡ ’”‘‹••‘”› ‘–‡ …ƒ „‡ –”ƒ•ˆ‡””‡† —†‡”
‡‰‘–‹ƒ„Ž‡•–”—‡–•…–„›†‡Ž‹˜‡”›‘”‡†‘”•‡‡–„—–…ƒ‘–„‡•‘Ž†Ǥ
 …–‹‘ƒ„Ž‡…Žƒ‹•ƒ”‡‡‹–Š‡”’”‘†—…–•‘”•‡”˜‹…‡•ǤŠ‡›…ƒ„‡…‘•‹†‡”‡†ƒ••‘‡–Š‹‰‹Ž‹‡—‘ˆ‘‡›Ǥ
‘
™‹ŽŽ‘–ƒ’’Ž›‘–Š‡•‡Ǥ
 ‘––‡”›ǡ„‡––‹‰ƒ†‰ƒ„Ž‹‰ƒ––”ƒ…–ʹͺΨ
Ǥ
¾ Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory
without such goods entering into India.
¾ Supply in Customs port before Home consumption
ȋƒȌ —’’Ž›‘ˆ™ƒ”‡Š‘—•‡†‰‘‘†•–‘ƒ›’‡”•‘„‡ˆ‘”‡…Ž‡ƒ”ƒ…‡ˆ‘”Š‘‡…‘•—’–‹‘Ǣ
ȋ„Ȍ —’’Ž›‘ˆ‰‘‘†•„›–Š‡…‘•‹‰‡‡–‘ƒ›‘–Š‡”’‡”•‘ǡ„›ƒ‡†‘”•‡‡–‘ˆ†‘…—‡–•‘ˆ–‹–Ž‡–‘–Š‡
‰‘‘†•ǡƒˆ–‡”–Š‡‰‘‘†•Šƒ˜‡„‡‡†‹•’ƒ–…Š‡†ˆ”‘–Š‡’‘”–‘ˆ‘”‹‰‹Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒ„—–„‡ˆ‘”‡
…Ž‡ƒ”ƒ…‡ˆ‘”Š‘‡…‘•—’–‹‘Ǥ

COMPOSITE & MIXED SUPPLY

ˆ–‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–‘‰‡–Š‡”ƒ”‡•—’’Ž‹‡†‹…‘„‹ƒ–‹‘ƒ†–Šƒ–ǯ•™Š‡‹–ƒ›‘–„‡•‹’Ž‡‡‘—‰Š
–‘†‹•–‹‰—‹•Š•—’’Ž‹‡•ƒ†‹†‡–‹ˆ›–Š‡•‡’ƒ”ƒ–‡Ž›ǡƒ•‡ƒ…Š‘ˆ–Š‡ƒ›ƒ––”ƒ…–ƒ†‹ˆˆ‡”‡–”ƒ–‡‘ˆ–ƒš„—–‹••‘Ž†ƒ•
‘‡’ƒ…ƒ‰‡Ǥ
 646 Lesson 12 Ȉ EP-TL

Composite Supply
‡…–‹‘ʹȋ͵ͲȌ†‡ˆ‹‡†Dz…‘’‘•‹–‡•—’’Ž›dzƒ•ƒ•—’’Ž›ƒ†‡„›ƒ–ƒšƒ„Ž‡’‡”•‘–‘ƒ”‡…‹’‹‡–…‘•‹•–‹‰‘ˆ–™‘
‘”‘”‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‘”ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ™Š‹…Šƒ”‡ƒ–—”ƒŽŽ›„—†Ž‡†
ƒ† •—’’Ž‹‡† ‹ …‘Œ—…–‹‘ ™‹–Š ‡ƒ…Š ‘–Š‡” ‹ –Š‡ ‘”†‹ƒ”› …‘—”•‡‘ˆ „—•‹‡••ǡ ‘‡ ‘ˆ ™Š‹…Š ‹• ƒ ’”‹…‹’ƒŽ
•—’’Ž›Ǣ
Š‡ˆ‡ƒ–—”‡•‘ˆƒ…‘’‘•‹–‡•—’’Ž›ƒ”‡ǣ
ƒȌ ™‘‘”‘”‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Š™Š‹…Šƒ”‡•—’’Ž‹‡†‹…‘Œ—…–‹‘™‹–Š‡ƒ…Š‘–Š‡”Ǥ
„Ȍ Š‡›ƒ”‡ƒ–—”ƒŽŽ›„—†Ž‡†Ǥ
…Ȍ •‹‰Ž‡’”‹…‡‹•…Šƒ”‰‡†ˆ‘”–Š‡•—’’Ž›Ǥ
†Ȍ ‡‘ˆ–Š‡•—’’Ž‹‡•™‹–Š‹–Š‡’ƒ…ƒ‰‡‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ•ƒ’”‹…‹’ƒŽ•—’’Ž›Ǥ

Mixed Supply
†‡”‡…–‹‘ʹȋ͹ͶȌ‘ˆ
…–ǡʹͲͳ͹ǡDz‹š‡†•—’’Ž›dz‡ƒ•–™‘‘”‘”‡‹†‹˜‹†—ƒŽ•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ǡ
‘”ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡƒ†‡‹…‘Œ—…–‹‘™‹–Š‡ƒ…Š‘–Š‡”„›ƒ–ƒšƒ„Ž‡’‡”•‘ˆ‘”ƒ•‹‰Ž‡’”‹…‡™Š‡”‡•—…Š
•—’’Ž›†‘‡•‘–…‘•–‹–—–‡ƒ…‘’‘•‹–‡•—’’Ž›ǤŠ‡ˆ‡ƒ–—”‡•‘ˆƒ‹š‡†•—’’Ž›ƒ”‡ǣ
ƒȌ ™‘‘”‘”‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Š™Š‹…Šƒ”‡•—’’Ž‹‡†‹…‘Œ—…–‹‘™‹–Š‡ƒ…Š‘–Š‡”
„Ȍ Š‡›ƒ”‡†‡Ž‹„‡”ƒ–‡Ž›„—†Ž‡†
…Ȍ •‹‰Ž‡’”‹…‡‹•…Šƒ”‰‡†ˆ‘”–Š‡•—’’Ž›
†Ȍ ‘‡‘ˆ–Š‡•—’’Ž‹‡•™‹–Š‹–Š‡’ƒ…ƒ‰‡‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ•ƒ’”‹…‹’ƒŽ•—’’Ž›

S. Issue Žƒ”‹ϐ‹…ƒ–‹‘
No.
1. Supply of books, pamphlets, brochures, envelopes, –Š‡…ƒ•‡‘ˆ’”‹–‹‰‘ˆ„‘‘•ǡ’ƒ’ŠŽ‡–•ǡ
ƒ—ƒŽ”‡’‘”–•ǡŽ‡ƒϐŽ‡–•ǡ…ƒ”–‘•ǡ„‘š‡•‡–…Ǥ’”‹–‡† „”‘…Š—”‡•ǡ ƒ—ƒŽ ”‡’‘”–•ǡ ƒ† –Š‡ Ž‹‡ǡ
with logo, design, name, address or other contents ™Š‡”‡ ‘Ž› …‘–‡– ‹• •—’’Ž‹‡† „› –Š‡
supplied by the recipient of such printed goods, ’—„Ž‹•Š‡”‘”–Š‡’‡”•‘™Š‘‘™•–Š‡—•ƒ‰‡
are composite supplies and the question, whether ”‹‰Š–• –‘ –Š‡ ‹–ƒ‰‹„Ž‡ ‹’—–• ™Š‹Ž‡ –Š‡
such supplies constitute supply of goods or ’Š›•‹…ƒŽ ‹’—–• ‹…Ž—†‹‰ ’ƒ’‡” —•‡† ˆ‘”
services would be determined on the basis of what ’”‹–‹‰ „‡Ž‘‰ –‘ –Š‡ ’”‹–‡”ǡ •—’’Ž› ‘ˆ
constitutes the principal supply. ’”‹–‹‰ ȏ‘ˆ –Š‡ …‘–‡– •—’’Ž‹‡† „› –Š‡
”‡…‹’‹‡– ‘ˆ •—’’Ž›Ȑ ‹• –Š‡ ’”‹…‹’ƒŽ •—’’Ž›
”‹…‹’ƒŽ•—’’Ž›Šƒ•„‡‡†‡ϐ‹‡†‹‡…–‹‘ʹȋͻͲȌ‘ˆ ƒ†–Š‡”‡ˆ‘”‡•—…Š•—’’Ž‹‡•™‘—Ž†…‘•–‹–—–‡
–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒ••—’’Ž› •—’’Ž›‘ˆ•‡”˜‹…‡ˆƒŽŽ‹‰—†‡”Š‡ƒ†‹‰ͻͻͺͻ‘ˆ
‘ˆ‰‘‘†•‘”•‡”˜‹…‡•™Š‹…Š…‘•–‹–—–‡•–Š‡’”‡†‘‹ƒ– –Š‡•…Š‡‡‘ˆ…Žƒ••‹ϐ‹…ƒ–‹‘‘ˆ•‡”˜‹…‡•Ǥ
‡Ž‡‡–‘ˆƒ…‘’‘•‹–‡•—’’Ž›ƒ†–‘™Š‹…Šƒ›‘–Š‡”
…ƒ•‡‘ˆ•—’’Ž›‘ˆ’”‹–‡†‡˜‡Ž‘’‡•ǡŽ‡––‡”
•—’’Ž› ˆ‘”‹‰ ’ƒ”– ‘ˆ –Šƒ– …‘’‘•‹–‡ •—’’Ž› ‹•
…ƒ”†•ǡ ’”‹–‡† „‘š‡•ǡ –‹••—‡•ǡ ƒ’‹•ǡ ™ƒŽŽ
ƒ…‹ŽŽƒ”›Ǥ
’ƒ’‡” ‡–…Ǥ ˆƒŽŽ‹‰ —†‡” Šƒ’–‡” Ͷͺ ‘” Ͷͻǡ
’”‹–‡†™‹–Š†‡•‹‰ǡŽ‘‰‘‡–…Ǥ•—’’Ž‹‡†„›–Š‡
”‡…‹’‹‡– ‘ˆ ‰‘‘†• „—– ƒ†‡ —•‹‰ ’Š›•‹…ƒŽ
‹’—–• ‹…Ž—†‹‰ ’ƒ’‡” „‡Ž‘‰‹‰ –‘ –Š‡
’”‹–‡”ǡ’”‡†‘‹ƒ–•—’’Ž›‹•–Šƒ–‘ˆ‰‘‘†•
ƒ† –Š‡ •—’’Ž› ‘ˆ ’”‹–‹‰ ‘ˆ –Š‡ …‘–‡–
ȏ•—’’Ž‹‡† „› –Š‡ ”‡…‹’‹‡– ‘ˆ •—’’Ž›Ȑ ‹•
ƒ…‹ŽŽƒ”›–‘–Š‡’”‹…‹’ƒŽ•—’’Ž›‘ˆ‰‘‘†•ƒ†
–Š‡”‡ˆ‘”‡ •—…Š •—’’Ž‹‡• ™‘—Ž† …‘•–‹–—–‡
•—’’Ž› ‘ˆ ‰‘‘†• ˆƒŽŽ‹‰ —†‡” ”‡•’‡…–‹˜‡
Š‡ƒ†‹‰•‘ˆŠƒ’–‡”Ͷͺ‘”Ͷͻ‘ˆ–Š‡—•–‘•
ƒ”‹ˆˆǤ
 Lesson 12 Ȉ Basics of Goods and Services Tax 647

2. Š‡–Š‡” ”‡–”‡ƒ†‹‰ ‘ˆ –›”‡• ‹• ƒ •—’’Ž› ‘ˆ ‰‘‘†• ‘” ”‡–”‡ƒ†‹‰‘ˆ–›”‡•ǡ™Š‹…Š‹•ƒ…‘’‘•‹–‡
•‡”˜‹…‡•ǫ •—’’Ž›ǡ –Š‡ ’”‡Ǧ†‘‹ƒ– ‡Ž‡‡– ‹• –Š‡
’”‘…‡•• ‘ˆ ”‡–”‡ƒ†‹‰ ™Š‹…Š ‹• ƒ •—’’Ž› ‘ˆ
•‡”˜‹…‡Ǥ —„„‡” —•‡† ˆ‘” ”‡–”‡ƒ†‹‰ ‹• ƒ
ƒ…‹ŽŽƒ”› •—’’Ž›Ǥ Š‹…Š ’ƒ”– ‘ˆ ƒ …‘’‘•‹–‡
•—’’Ž› ‹• –Š‡ ’”‹…‹’ƒŽ •—’’Ž›ǡ —•– „‡
†‡–‡”‹‡†‡‡’‹‰‹˜‹‡™–Š‡ƒ–—”‡‘ˆ–Š‡
•—’’Ž› ‹˜‘Ž˜‡†Ǥ ƒŽ—‡ ƒ› „‡ ‘‡ ‘ˆ –Š‡
‰—‹†‹‰ˆƒ…–‘”•‹–Š‹•†‡–‡”‹ƒ–‹‘ǡ„—–‘–
–Š‡ •‘Ž‡ ˆƒ…–‘”Ǥ Š‡ ’”‹ƒ”› “—‡•–‹‘ –Šƒ–
•Š‘—Ž† „‡ ƒ•‡† ‹• ™Šƒ– ‹• –Š‡ ‡••‡–‹ƒŽ
ƒ–—”‡ ‘ˆ –Š‡ …‘’‘•‹–‡ •—’’Ž› ƒ† ™Š‹…Š
‡Ž‡‡–‘ˆ–Š‡•—’’Ž›‹’ƒ”–•–Šƒ–‡••‡–‹ƒŽ
ƒ–—”‡–‘–Š‡…‘’‘•‹–‡•—’’Ž›Ǥ

—’’Ž› ‘ˆ ”‡–”‡ƒ†‡† –›”‡•ǡ ™Š‡”‡ –Š‡ ‘Ž†

–›”‡• „‡Ž‘‰ –‘ –Š‡ •—’’Ž‹‡” ‘ˆ ”‡–”‡ƒ†‡†
–›”‡•ǡ ‹• ƒ •—’’Ž› ‘ˆ ‰‘‘†• ȋ”‡–”‡ƒ†‡† –›”‡•
—†‡” Š‡ƒ†‹‰ ͶͲͳʹ ‘ˆ –Š‡ —•–‘• ƒ”‹ˆˆ
ƒ––”ƒ…–‹‰
̷ʹͺΨȌ
͵Ǥ Š‡–Š‡””‹‘”‹–›‡…–‘”‡†‹‰‡”–‹ϐ‹…ƒ–‡•ȋ•Ȍ  ‡•‡”˜‡ ƒ ‘ˆ †‹ƒ  ‘ ǡ ‹–
ƒ”‡ ‘—–•‹†‡ –Š‡ ’—”˜‹‡™ ‘ˆ
 ƒ† –Š‡”‡ˆ‘”‡ ‘– Šƒ• „‡‡ ‡–‹‘‡† –Šƒ–  ƒ› „‡
–ƒšƒ„Ž‡ǫ …‘•–”—‡† –‘ „‡ ‹ –Š‡ ƒ–—”‡ ‘ˆ ‰‘‘†•ǡ
†‡ƒŽ‹‰ ‹ ™Š‹…Š Šƒ• „‡‡ ‘–‹ˆ‹‡† ƒ• ƒ
’‡”‹••‹„Ž‡ ƒ…–‹˜‹–› —†‡” •‡…–‹‘ ͸ȋͳȌ ‘ˆ
–Š‡ ƒ‹‰ ‡‰—Žƒ–‹‘ …–ǡ ͳͻͶͻ ˜‹†‡

‘˜‡”‡– ‘ˆ †‹ƒ ‘–‹ˆ‹…ƒ–‹‘ †ƒ–‡†
Ͷ–Š ‡„”—ƒ”›ǡʹͲͳ͸Ǥƒ”‡‘–•‡…—”‹–‹‡•Ǥ
 ƒ”‡ ƒ‹ –‘ ˆ”‡‡Ž› –”ƒ†‡ƒ„Ž‡ †—–›
•…”‹’•ǡ‡‡™ƒ„Ž‡‡”‰›‡”–‹ˆ‹…ƒ–‡•ǡ
Ž‹…‡•‡ ‘” ”‡’Ž‡‹•Š‡– Ž‹…‡•‡ǡ ™Š‹…Š
ƒ––”ƒ…–‡†Ǥ


–Š‡”‡‹•‘‡š‡’–‹‘–‘–”ƒ†‹‰‹
•ǤŠ—•ǡ•ƒ”‡–ƒšƒ„Ž‡ƒ•‰‘‘†•ƒ–
•–ƒ†ƒ”†”ƒ–‡‘ˆͳͺΨ—†‡”–Š‡”‡•‹†—ƒ”›
Ǥ‘ǤͶͷ͵‘ˆ…Š‡†—Ž‡‘ˆ‘–‹ˆ‹…ƒ–‹‘‘Ǥ
ͳȀʹͲͳ͹Ǧ‡–”ƒŽƒšȋƒ–‡ȌǤ
’ƒ›ƒ„Ž‡‘
–Š‡…‡”–‹ˆ‹…ƒ–‡•™‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡ƒ•–‘
–Š‡„ƒ„—›‹‰–Š‡…‡”–‹ˆ‹…ƒ–‡•Ǥ

LEVY & COLLECTION OF TAX

‹•Ž‡˜‹‡†ƒ––Š‡’‘‹–‘ˆ•—’’Ž›ǡ–Šƒ–‹•ƒ––Š‡–‹‡ƒ†’Žƒ…‡‘ˆ•—’’Ž›ƒ†–Šƒ–ǯ•™Š‡–Š‡Ž‹ƒ„‹Ž‹–›–‘…Šƒ”‰‡

ƒ”‹•‡•Ǥ
•‡š’Žƒ‹‡†—†‡”‡…–‹‘ͳͷ–‘‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•–ƒš…–ǡʹͲͳ͹ǡ•—…Š
™‘—Ž†„‡Ž‡˜‹‡†‘–Š‡–”ƒ•ƒ…–‹‘
˜ƒŽ—‡Ǥ
Rates (Goods)
ƒ–‡•ƒ”‡„”‘ƒ†Ž›ͲǤʹͷΨǡ͵ΨǡͷΨǡͳʹΨǡͳͺΨƒ†ʹͺΨƒ†–Šƒ–‹••’Ž‹–‹–‘
ƒ†
‡“—ƒŽŽ›ˆ‘”–”ƒǦ–ƒ–‡
•ƒŽ‡•ƒ†ˆ—ŽŽ›Ž‡˜‹ƒ„Ž‡ƒ•
ˆ‘”–‡”Ǧ–ƒ–‡•ƒŽ‡Ǥ
 648 Lesson 12 Ȉ EP-TL

Rates (Services)
ƒ–‡•ƒ”‡„”‘ƒ†Ž›ͷΨǡͳʹΨǡͳͺΨƒ†ʹͺΨƒ†–Šƒ–‹••’Ž‹–‹–‘
ƒ†
‡“—ƒŽŽ›ˆ‘”–”ƒǦ–ƒ–‡•ƒŽ‡•ƒ†ˆ—ŽŽ›
Ž‡˜‹ƒ„Ž‡ƒ•
ˆ‘”–‡”Ǧ–ƒ–‡•ƒŽ‡Ǥ

COMPOSITION SCHEME
‡…–‹‘ ͳͲ ‘ˆ –Š‡ 
 …–ǡ ʹͲͳ͹ …‘–ƒ‹• –Š‡ ’”‘˜‹•‹‘•
”‡‰ƒ”†‹‰ …‘’‘•‹–‹‘ Ž‡˜›Ǥ Š‡ ‘„Œ‡…–‹˜‡ ‘ˆ –Š‡ •…Š‡‡ ‹• –‘ ƒŽŽ –ƒš ’ƒ›‡”•ǡ ™Š‘ Šƒ˜‡ ƒ ƒ—ƒŽ
„”‹‰ ƒ„‘—– •‹’Ž‹…‹–› ƒ† –‘ ”‡†—…‡ …‘’Ž‹ƒ…‡ …‘•– ˆ‘” –Š‡ –—”‘˜‡”‘ˆŽ‡••–Šƒ•ǤͳǤͷ…”‘”‡ȋƒ’’Ž‹…ƒ„Ž‡
•ƒŽŽ–ƒš’ƒ›‡”•Ǥ ˆ”‘ ͳ•– ’”‹Ž ʹͲͳͻ ‘™ƒ”†•Ȍ ‹ –Š‡
Š‡ ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” ™‘—Ž† ‹…Ž—†‡ ˜ƒŽ—‡ ‘ˆ ƒŽŽ ‘—–™ƒ”† ’”‡…‡†‹‰ ‹ƒ…‹ƒŽ‡ƒ”ȋ Ȍƒ”‡‡Ž‹‰‹„Ž‡–‘
•—’’Ž‹‡•ǡ‹Ǥ‡Ǥǣ ‘’– ˆ‘” –Š‹• •…Š‡‡ ‹Ǥ‡Ǥǡ ‘’‘•‹–‹‘ ‡˜›Ǥ
‘”–Š‡•–ƒ–‡•ƒ‡Ž›ȋ‹Ȍ”—ƒ…ŠƒŽ”ƒ†‡•Š
‹Ȍ ƒšƒ„Ž‡•—’’Ž‹‡•
ȋ‹‹Ȍ ƒ‹’—”ǡ ȋ‹‹‹Ȍ ‡‰ŠƒŽƒ›ƒǡ ȋ‹˜Ȍ ‹œ‘”ƒǡ
‹‹Ȍ š‡’–•—’’Ž‹‡• ȋ˜Ȍƒ‰ƒŽƒ†ǡȋ˜‹Ȍ‹‹ǡȋ˜‹‹Ȍ”‹’—”ƒǡȋ˜‹‹‹Ȍ
‹‹‹Ȍ ‡”‘Ǧ”ƒ–‡†•—’’Ž‹‡•ȋ‹Ǥ‡Ǥǡš’‘”–•Ȍ ––ƒ”ƒŠƒ† ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” Ž‹‹– •ŠƒŽŽ
„‡•Ǥ͹ͷŽƒŠǤ
‹˜Ȍ –‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ’‡”•‘•Šƒ˜‹‰–Š‡•ƒ‡„‡
…‘’—–‡†‘ƒŽŽ†‹ƒ„ƒ•‹•„—–‡š…Ž—†‡•
ͳǤ 
Ȁ
Ȁ
Ȁ
Ȁ‡••ǡ
ʹǤ ƒŽ—‡‘ˆ‹™ƒ”†•—’’Ž‹‡•‘™Š‹…Š–ƒš‹•’ƒ›ƒ„Ž‡—†‡””‡˜‡”•‡…Šƒ”‰‡Ǥ
Š‡‡˜‡”•‡Šƒ”‰‡‡…Šƒ‹••—’’Ž‹‡•ƒ”‡‘–‹…Ž—†‡†Š‡”‡ǡƒ•–Š‡•‡™‘—Ž†„‡ƒ††‡†–‘–Š‡–—”‘˜‡”‘ˆ–Š‡
—”‡‰‹•–‡”‡†•—’’Ž‹‡”Ǥ

Conditions & Restrictions

ͳȌ Š‡•—’’Ž‹‡”™Š‘‘’–•ˆ‘”‘’‘•‹–‹‘‡˜›…ƒ‘–”ƒ‹•‡–ƒš‹˜‘‹…‡Ǣ
ʹȌ Š‡”‡ˆ‘”‡ǡ–Š‡›‡‡†‘–…‘ŽŽ‡…–ƒ›–ƒš‘•—’’Ž›Ǣ
͵Ȍ ‡…‡ǡ–Š‡”‡…‹’‹‡–‘ˆ•—…Š•—’’Ž‹‡•…ƒǯ–…Žƒ‹ƒ›’—–ƒš”‡†‹–ȋȌ‘•—’’Ž‹‡•ˆ”‘•—…Š•—’’Ž‹‡”•
™Š‘Šƒ˜‡‘’–‡†ˆ‘”‘’‘•‹–‹‘‡˜›Ǣ
ͶȌ ‹‹Žƒ”Ž›ǡ‡˜‡–Š‡›–Š‡•‡Ž˜‡•…ƒ‘–…Žƒ‹ƒ›‘–Š‡‹™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•Ǣ
ͷȌ ’‡”•‘‘’–‹‰ˆ‘”–Š‡•…Š‡‡•ŠƒŽŽ‡–‹‘‘–Š‡‹˜‘‹…‡•‹••—‡†–Šƒ–Š‡Šƒ•‘’–‡†ˆ‘”•—…Š•…Š‡‡Ǣ
͸Ȍ ‡•ŠƒŽŽƒŽ•‘‡–‹‘Dz…‘’‘•‹–‹‘–ƒšƒ„Ž‡’‡”•‘dz‘‡˜‡”›‘–‹…‡„‘ƒ”††‹•’Žƒ›‡†ƒ––Š‡’Žƒ…‡‘ˆ„—•‹‡••Ǣ
͹Ȍ Š‡ˆ‘ŽŽ‘™‹‰…ƒ‘–‘’–ˆ‘”…‘’‘•‹–‹‘Ž‡˜›ǣ
ƒȌ —’’Ž‹‡”‘ˆ•‡”˜‹…‡••ƒ˜‡ƒ•’”‘˜‹†‡†‹•‡…–‹‘ͳͲȋͳȌǤ
„Ȍ —’’Ž‹‡”‘ˆ‰‘‘†•™Š‹…Šƒ”‡‘–Ž‡˜‹ƒ„Ž‡–‘–ƒšǤ
…Ȍ —’’Ž‹‡”‘ˆ–‡”Ǧ–ƒ–‡‘—–™ƒ”†•—’’Ž‹‡•‘ˆ‰‘‘†•ȏŠ‡”‡‹•‘”‡•–”‹…–‹‘‘…‘’‘•‹–‹‘•—’’Ž‹‡”–‘
”‡…‡‹˜‡‹–‡”Ǧ–ƒ–‡‹™ƒ”†•—’’Ž‹‡•‘ˆ‰‘‘†•ƒ•ƒŽ•‘–‘ƒ‡‹–‡”Ǧ–ƒ–‡‹™ƒ”†ƒ†‘—–™ƒ”†•—’’Ž›‘ˆ
•‡”˜‹…‡•ȐǤ
†Ȍ ‡”•‘•—’’Ž›‹‰‰‘‘†•–Š”‘—‰Šƒ‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”™Š‘‹•”‡“—‹”‡†–‘…‘ŽŽ‡…––ƒšƒ–
•‘—”…‡—†‡”•‡…–‹‘ͷʹǤ
‡Ȍ ƒ—ˆƒ…–—”‡”•‘ˆ‹…‡Ǧ…”‡ƒǡ’ƒƒ•ƒŽƒ–‘„ƒ……‘ƒ†ƒ‡”ƒ–‡†™ƒ–‡”•Ǥ
ˆȌ …ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘ƒ†‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘Ǥ

Rates
Š‡–ƒš”ƒ–‡’”‡•…”‹„‡†ˆ‘”†‹ˆˆ‡”‡–…ƒ–‡‰‘”‹‡•‘ˆ”‡‰‹•–‡”‡†’‡”•‘•—†‡”–Š‡•…Š‡‡‹•ƒ•ˆ‘ŽŽ‘™•ǣ
 Lesson 12 Ȉ Basics of Goods and Services Tax 649

S. Total Tax
Registered Person CGST Rate SGST Rate
NO. Rate
1. ƒ—ˆƒ…–—”‡”•ȋ‘–Š‡”–Šƒ ͲǤͷΨ ‘ˆ –Š‡ –—”‘˜‡” ‹ –Š‡ ͲǤͷΨ‘ˆ–Š‡ ͳΨ
ƒ—ˆƒ…–—”‡”•‘ˆ‰‘‘†•ƒ•ƒ›„‡ –ƒ–‡Ȁ‹‘–‡””‹–‘”› –—”‘˜‡”‹–Š‡
‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–ǡ‹Ǥ‡Ǥǡ‹…‡ –ƒ–‡Ȁ‹‘
…”‡ƒǡ’ƒƒ•ƒŽƒǡ–‘„ƒ……‘ƒ† –‡””‹–‘”›
ƒ‡”ƒ–‡†™ƒ–‡”•Ȍ
2. ‡•–ƒ—”ƒ–‡”˜‹…‡•ǡ ‹Ǥ‡Ǥǡ•—’’Ž‹‡”• ‘ˆ ʹǤͷΨ ‘ˆ –Š‡ –—”‘˜‡” ‹ –Š‡ ʹǤͷΨ‘ˆ–Š‡ ͷΨ
ˆ‘‘†Ȁ †”‹ ˆ‘” Š—ƒ …‘•—’–‹‘ –ƒ–‡Ȁ‹‘–‡””‹–‘”› –—”‘˜‡”‹–Š‡
ȋ‘–Š‡” –Šƒ ƒŽ…‘Š‘Ž‹…Ž‹“—‘—”ˆ‘” –ƒ–‡Ȁ‹‘
Š—ƒ…‘•—’–‹‘Ȍ –‡””‹–‘”›
͵Ǥ ”ƒ†‡”• ‘” ƒ›‘–Š‡”•—’’Ž‹‡”‡Ž‹‰‹„Ž‡ ͲǤͷΨ‘ˆ–Š‡–—”‘˜‡”‘ˆ ͲǤͷΨ‘ˆ–Š‡ ͳΨ
ˆ‘” …‘’‘•‹–‹‘Ž‡˜› •—’’Ž‹‡•‘ˆ‰‘‘†• –—”‘˜‡”‘ˆ
ƒ†•‡”˜‹…‡•‹–Š‡–ƒ–‡‘” •—’’Ž‹‡•
‹‘–‡””‹–‘”› ‘ˆ‰‘‘†•ƒ†
•‡”˜‹…‡•‹–Š‡–ƒ–‡
‘”‹‘–‡””‹–‘”›

—”‘˜‡” ‹ …ƒ•‡ ‘ˆ –”ƒ†‡”• Šƒ• „‡‡ †‡ϐ‹‡† ƒ• Ǯ—”‘˜‡” ‘ˆ –ƒšƒ„Ž‡ •—’’Ž‹‡• ‘ˆ ‰‘‘†• ƒ† •‡”˜‹…‡•ǯǤ Š—•ǡ ˆ‘”
–”ƒ†‡”•ǡ‡š‡’–‡†•—’’Ž‹‡•™‘—Ž†‘–„‡ƒ††‡†‹–Š‡–—”‘˜‡”ˆ‘”–Š‡’—”’‘•‡‘ˆŽ‡˜›‘ˆͳΨ‘’‘•‹–‹‘Ž‡˜›Ǥ
‡‡ϐ‹–ˆ‘”ƒ”‰‹ƒŽ•—’’Ž›‘ˆ•‡”˜‹…‡•ƒŽ‘‰™‹–Š–Š‡•—’’Ž›‘ˆ‰‘‘†•‘””‡•–ƒ—”ƒ–•‡”˜‹…‡•
—†ƒ‡–ƒŽŽ›ǡ–Š‡…‘’‘•‹–‹‘•…Š‡‡…ƒ„‡ƒ˜ƒ‹Ž‡†‹”‡•’‡…–‘ˆ‰‘‘†•ƒ†‘Ž›‘‡•‡”˜‹…‡ƒ‡Ž›ǡ”‡•–ƒ—”ƒ–
•‡”˜‹…‡Ǥ‘™‡˜‡”ǡ–Š‡”‡ƒ”‡…ƒ•‡•™Š‡”‡ƒƒ—ˆƒ…–—”‡”Ȁ–”ƒ†‡”‹•ƒŽ•‘‡‰ƒ‰‡†‹•—’’Ž›‘ˆ•‡”˜‹…‡•‘–Š‡”–Šƒ
”‡•–ƒ—”ƒ–•‡”˜‹…‡–Š‘—‰Š–Š‡’‡”…‡–ƒ‰‡‘ˆ•—…Š•—’’Ž›‘ˆ•‡”˜‹…‡•‹•˜‡”›•ƒŽŽƒ•…‘’ƒ”‡†–‘–Š‡•—’’Ž‹‡•‘ˆ
‰‘‘†•ǤŠ‡”‡ƒ›ƒŽ•‘„‡…ƒ•‡•™Š‡”‡ƒ”‡•–ƒ—”ƒ–•‡”˜‹…‡’”‘˜‹†‡”‹•ƒŽ•‘‡‰ƒ‰‡†‹•—’’Ž›‹‰ƒ•ƒŽŽ’‡”…‡–ƒ‰‡
‘ˆ‘–Š‡”•‡”˜‹…‡•Ǥ
‹–Šƒ˜‹‡™–‘‡ƒ„Ž‡•—…Š–ƒš’ƒ›‡”•–‘ƒ˜ƒ‹Ž‘ˆ–Š‡„‡‡ϐ‹–‘ˆ…‘’‘•‹–‹‘•…Š‡‡ǡ•‡…‘†’”‘˜‹•‘–‘•‡…–‹‘ͳͲȋͳȌ
’‡”‹–•ƒ”‰‹ƒŽ•—’’Ž›‘ˆ•‡”˜‹…‡•ȏ‘–Š‡”–Šƒ”‡•–ƒ—”ƒ–•‡”˜‹…‡•Ȑˆ‘”ƒ•’‡…‹ϐ‹‡†˜ƒŽ—‡ƒŽ‘‰™‹–Š–Š‡•—’’Ž›‘ˆ
‰‘‘†•ƒ†Ȁ‘””‡•–ƒ—”ƒ–•‡”˜‹…‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǤŠ‹••’‡…‹ϐ‹‡†˜ƒŽ—‡‹•–Š‡˜ƒŽ—‡‘–‡š…‡‡†‹‰ǣ
ȋƒȌ ͳͲΨ‘ˆ–Š‡–—”‘˜‡”‹ƒ–ƒ–‡Ȁ‹‘–‡””‹–‘”›‹–Š‡’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”
Or
ȋ„Ȍ •Ǥͷƒ…•

™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ

For example: ”Ǥƒ‹•‡‰ƒ‰‡†‹•—’’Ž›‘ˆ‰‘‘†•Ǥ‹•ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”‹’”‡…‡†‹‰ ‹••ǤͺͲŽƒŠǤ‹…‡

Š‹•ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”‹–Š‡’”‡…‡†‹‰ †‘‡•‘–‡š…‡‡†•ǤͳǤͷ…”‘”‡ǡŠ‡‹•‡Ž‹‰‹„Ž‡ˆ‘”…‘’‘•‹–‹‘•…Š‡‡
‹…—””‡– Ǥ —”–Š‡”ǡ‹…—””‡– ǡŠ‡…ƒ•—’’Ž›•‡”˜‹…‡•ȏ‘–Š‡”–Šƒ”‡•–ƒ—”ƒ–•‡”˜‹…‡•Ȑ—’–‘ƒ˜ƒŽ—‡‘–
‡š…‡‡†‹‰ǣ
ȋƒȌ ͳͲΨ‘ˆ•ǤͺͲƒ…•‹Ǥ‡Ǥǡ•Ǥͺƒ…•
Or
ȋ„Ȍ •Ǥͷƒ…•

™Š‹…Š‡˜‡”‹•Š‹‰Š‡”ǤŠ—•ǡŠ‡…ƒ•—’’Ž›•‡”˜‹…‡•—’–‘ƒ˜ƒŽ—‡‘ˆ•ǤͺŽƒŠ‹…—””‡– Ǥˆ–Š‡˜ƒŽ—‡‘ˆ•‡”˜‹…‡•

•—’’Ž‹‡† ‡š…‡‡†• •Ǥ ͺ ŽƒŠǡ Š‡ „‡…‘‡• ‹‡Ž‹‰‹„Ž‡ ˆ‘” –Š‡ …‘’‘•‹–‹‘ •…Š‡‡ ƒ† Šƒ• –‘ ‘’– ‘—– ‘ˆ –Š‡
…‘’‘•‹–‹‘•…Š‡‡
 650 Lesson 12 Ȉ EP-TL

New scheme of Composition: Section 10(2A)

•™‡Šƒ˜‡ƒŽ”‡ƒ†›•‡‡–Šƒ–’”‹ƒ”‹Ž›ǡ–Š‡…‘’‘•‹–‹‘•…Š‡‡‹•ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ‰‘‘†•ƒ†‘Ž›‘‡•‡”˜‹…‡
ƒ‡Ž›ǡ”‡•–ƒ—”ƒ–•‡”˜‹…‡Ǥ —”–Š‡”™‹–Š–Š‡•—’’Ž›‘ˆ‰‘‘†•ƒ†Ȁ‘””‡•–ƒ—”ƒ–•‡”˜‹…‡Ǥ‘™‡˜‡”ǡƒ’‡”•‘‡‰ƒ‰‡†
‡š…Ž—•‹˜‡Ž›‹•—’’Ž›‘ˆ•‡”˜‹…‡•‘–Š‡”–Šƒ”‡•–ƒ—”ƒ–•‡”˜‹…‡‹•‘–‡Ž‹‰‹„Ž‡ˆ‘”–Š‡…‘’‘•‹–‹‘•…Š‡‡Ǥ
‘”†‡”–‘’”‘˜‹†‡„‡‡ϐ‹––‘•—…Š•—’’Ž‹‡”•ǡƒ•…Š‡‡–‘’ƒ›–ƒšƒ––Š‡…‘…‡••‹‘ƒŽ”ƒ–‡Šƒ•„‡‡ˆ‘”—Žƒ–‡†
’”‹ƒ”‹Ž›ˆ‘”•ƒŽŽ•‡”˜‹…‡’”‘˜‹†‡”•Ž‹‡•ƒŽ‘•–›Ž‹•–ǡ–ƒ‹Ž‘”•‡–…Ǥ™Š‘ƒ”‡‘–‘–Š‡”™‹•‡‡Ž‹‰‹„Ž‡ˆ‘”…‘’‘•‹–‹‘
•…Š‡‡Ǥ
Composition scheme for service providers
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰–‘–Š‡…‘–”ƒ”›…‘–ƒ‹‡†‹–Š‹•…–ǡ„—–•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘•ȋ͵Ȍ
ƒ†ȋͶȌ‘ˆ•‡…–‹‘ͻǡƒ”‡‰‹•–‡”‡†’‡”•‘ǡ‘–‡Ž‹‰‹„Ž‡–‘‘’––‘’ƒ›–ƒš—†‡”•—„Ǧ•‡…–‹‘ȋͳȌƒ†•—„Ǧ•‡…–‹‘
ȋʹȌǡ™Š‘•‡ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”‹–Š‡’”‡…‡†‹‰ˆ‹ƒ…‹ƒŽ›‡ƒ”†‹†‘–‡š…‡‡†ˆ‹ˆ–›ŽƒŠ”—’‡‡•ǡƒ›‘’––‘’ƒ›ǡ
‹Ž‹‡—‘ˆ–Š‡–ƒš’ƒ›ƒ„Ž‡„›Š‹—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͻǡƒƒ‘—–‘ˆ–ƒš…ƒŽ…—Žƒ–‡†ƒ–•—…Š”ƒ–‡ƒ•
ƒ›„‡’”‡•…”‹„‡†ǡ„—–‘–‡š…‡‡†‹‰–Š”‡‡’‡”…‡–Ǥ‘ˆ–Š‡–—”‘˜‡”‹–ƒ–‡‘”–—”‘˜‡”‹‹‘–‡””‹–‘”›ǡ‹ˆŠ‡
‹•‘–ǦǦ
ȋƒȌ ‡‰ƒ‰‡† ‹ ƒ‹‰ ƒ› •—’’Ž› ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ™Š‹…Š ƒ”‡ ‘– Ž‡˜‹ƒ„Ž‡ –‘ –ƒš —†‡” –Š‹• …–Ǣ †‡”
…‘’‘•‹–‹‘•…Š‡‡ǡ”‡•–”‹…–‹‘‹•‘Ž›‘•—’’Ž›‘ˆ‰‘‘†•‘–Ž‡˜‹ƒ„Ž‡–‘–ƒšǢ
ȋ„Ȍ ‡‰ƒ‰‡†‹ƒ‹‰ƒ›‹–‡”Ǧ–ƒ–‡‘—–™ƒ”†•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǣ†‡”…‘’‘•‹–‹‘•…Š‡‡–Š‡
”‡•–”‹…–‹‘‹•‘Ž›‘ƒ‹‰‹–‡”Ǧ–ƒ–‡‘—–™ƒ”†•—’’Ž›‘ˆ‰‘‘†•ƒ†‘–‘‹–‡”Ǧ–ƒ–‡‘—–™ƒ”†•—’’Ž›‘ˆ
•‡”˜‹…‡•Ǣ
ȋ…Ȍ ‡‰ƒ‰‡†‹ƒ‹‰ƒ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•–Š”‘—‰Šƒ‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”™Š‘‹•”‡“—‹”‡†
–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡—†‡”•‡…–‹‘ͷʹǢ
ȋ†Ȍ ƒƒ—ˆƒ…–—”‡”‘ˆ‘–‹ϐ‹‡†‰‘‘†•ȏ‹…‡…”‡ƒǡ’ƒƒ•ƒŽƒǡ–‘„ƒ……‘ƒ†ƒ‡”ƒ–‡†™ƒ–‡”•Ȑ‘”•—’’Ž‹‡”‘ˆ•—…Š
•‡”˜‹…‡•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹ŽǢƒ†
ȋ‡Ȍ ƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘‘”ƒ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘Ǥ

”‘˜‹†‡†–Šƒ–™Š‡”‡‘”‡–Šƒ‘‡”‡‰‹•–‡”‡†’‡”•‘‹•Šƒ˜‹‰–Š‡•ƒ‡‡”ƒ‡–……‘—–—„‡”‹••—‡†—†‡”
–Š‡…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳǡ–Š‡”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‘–„‡‡Ž‹‰‹„Ž‡–‘‘’–ˆ‘”–Š‡•…Š‡‡—†‡”–Š‹••—„Ǧ•‡…–‹‘
—Ž‡••ƒŽŽ•—…Š”‡‰‹•–‡”‡†’‡”•‘•‘’––‘’ƒ›–ƒš—†‡”–Š‹••—„Ǧ•‡…–‹‘Ǥdz
…‘’—–‹‰ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”‹‘”†‡”–‘†‡–‡”‹‡‡Ž‹‰‹„‹Ž‹–›‘ˆƒ”‡‰‹•–‡”‡†’‡”•‘–‘’ƒ›–ƒš—†‡”ƒ›‘ˆ–Š‡
…‘’‘•‹–‹‘•…Š‡‡•ǡ–Š‡‡š’”‡••‹‘Dzƒ‰‰”‡‰ƒ–‡–—”‘˜‡”dz•ŠƒŽŽ‹…Ž—†‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž‹‡•ƒ†‡„›•—…Š’‡”•‘
ˆ”‘–Š‡ͳ•–†ƒ›‘ˆ’”‹Ž‘ˆƒϐ‹ƒ…‹ƒŽ›‡ƒ”—’–‘–Š‡†ƒ–‡™Š‡Š‡„‡…‘‡•Ž‹ƒ„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–ǡ
„—–•ŠƒŽŽ‘–‹…Ž—†‡–Š‡˜ƒŽ—‡‘ˆ‡š‡’–•—’’Ž›‘ˆ•‡”˜‹…‡•’”‘˜‹†‡†„›™ƒ›‘ˆ‡š–‡†‹‰†‡’‘•‹–•ǡŽ‘ƒ•‘”ƒ†˜ƒ…‡•
‹•‘ˆƒ”ƒ•–Š‡…‘•‹†‡”ƒ–‹‘‹•”‡’”‡•‡–‡†„›™ƒ›‘ˆ‹–‡”‡•–‘”†‹•…‘—–Ǥ
‘”–Š‡’—”’‘•‡•‘ˆ†‡–‡”‹‹‰–Š‡–ƒš’ƒ›ƒ„Ž‡„›ƒ’‡”•‘—†‡”–Š‹••‡…–‹‘ǡ–Š‡‡š’”‡••‹‘Dz–—”‘˜‡”‹–ƒ–‡‘”
–—”‘˜‡”‹‹‘–‡””‹–‘”›dz•ŠƒŽŽ‘–‹…Ž—†‡–Š‡˜ƒŽ—‡‘ˆˆ‘ŽŽ‘™‹‰•—’’Ž‹‡•ǡƒ‡Ž›•—’’Ž‹‡•ˆ”‘–Š‡ϐ‹”•–†ƒ›‘ˆ
’”‹Ž‘ˆƒϐ‹ƒ…‹ƒŽ›‡ƒ”—’–‘–Š‡†ƒ–‡™Š‡•—…Š’‡”•‘„‡…‘‡•Ž‹ƒ„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–Ǣƒ†‡š‡’–
•—’’Ž› ‘ˆ •‡”˜‹…‡• ’”‘˜‹†‡† „› ™ƒ› ‘ˆ ‡š–‡†‹‰ †‡’‘•‹–•ǡ Ž‘ƒ• ‘” ƒ†˜ƒ…‡• ‹ •‘ ˆƒ” ƒ• –Š‡ …‘•‹†‡”ƒ–‹‘ ‹•
”‡’”‡•‡–‡†„›™ƒ›‘ˆ‹–‡”‡•–‘”†‹•…‘—–Ǥǯ
Š‡
—†‡”‘’‘•‹–‹‘…Š‡‡‹•‘–…‘ŽŽ‡…–‡†ˆ”‘–Š‡”‡…‹’‹‡–•Ȁ…—•–‘‡”•Ǣ–Š‹•‹••‹’Ž›ƒˆƒ…‹Ž‹–›ˆ‘”
Šƒ••Ž‡ˆ”‡‡…‘’Ž‹ƒ…‡—†‡”
ǤŠ‡…‘’‘•‹–‹‘Ž‡˜›‹ˆ‘’–‡†‹•ƒ’’Ž‹…ƒ„Ž‡—†‡”‘‡ǡƒ†–Š‡‹–‹•ƒ’’Ž‹…ƒ„Ž‡
ˆ‘”ƒŽŽ„—•‹‡••‡•—†‡”–Šƒ–ǡ‘”‘‡ǤŠ‹•‹’Ž‹‡•ǡ–Šƒ–‹–‹•‘–ƒŽŽ‘™‡†ˆ‘”•‘‡„—•‹‡••‡•—†‡”‘”ƒŽ
Ž‡˜›ƒ†•‘‡—†‡”…‘’‘•‹–‹‘Ž‡˜›Ǥ

…‡ –Š‡ –—”‘˜‡” „”‡ƒ…Š‡• –Š‡ –Š”‡•Š‘Ž†ǡ –Š‡ …‘’‘•‹–‹‘ Ž‡˜› ‹• •™‹–…Š‡† ‘ˆˆ ƒ† –Š‡ ‘”ƒŽ Ž‡˜› ‹•
ƒ’’Ž‹…ƒ„Ž‡Ǥ
 Lesson 12 Ȉ Basics of Goods and Services Tax 651

Illustration 1
ǡƒ–”ƒ†‡”™Š‘Šƒ•ƒ”‡˜‡—‡‘ˆͷͲǡͲͲǡͲͲͲ‹…Ž—•‹˜‡‘ˆ
̷ͷΨŠƒ•’—”…Šƒ•‡•ƒ‘—–‹‰–‘ͶͲǡͲͲǡͲͲͲ
ȋ
̷ͷΨ‡š–”ƒȌǤ‘‘Ǧ‡‡’‹‰ƒ†
…‘’Ž‹ƒ…‡…‘•–•ƒ”‡ʹǡͷͲǡͲͲͲƒ†‘–Š‡”ƒ†‹‹•–”ƒ–‹˜‡…‘•–•ƒ”‡
ͷͲǡͲͲͲǤ‡‘™™ƒ–•–‘•™‹–…Š–‘‘’‘•‹–‹‘‡˜›Ǥ‘—ƒ”‡”‡“—‡•–‡†–‘ƒ†˜‹•‡‹›‘—”…ƒ’ƒ…‹–›ƒ•ƒ
…‘•—Ž–ƒ–Ǥ

Normal Levy Composition Levy

‡˜‡—‡ ͷͲǡͲͲǡͲͲͲ ‡˜‡—‡ ͷͲǡͲͲǡͲͲͲ
‡••ǣ
 ʹǡ͵ͺǡͲͻͷ ‡••ǣ
 
‡–‡˜‡—‡ Ͷ͹ǡ͸ͳǡͻͲͷ ‡–‡˜‡—‡ ͷͲǡͲͲǡͲͲͲ
‡••ǣ—”…Šƒ•‡• ͶͲǡͲͲǡͲͲͲ ‡••ǣ—”…Šƒ•‡• ͶʹǡͲͲǡͲͲͲ
‘‘‡‡’‹‰ ʹǡͷͲǡͲͲͲ ‘‘‡‡’‹‰ ͳǡͲͲǡͲͲͲ
–Š‡”‘•–• ͷͲǡͲͲͲ –Š‡”‘•–• ͷͲǡͲͲͲ

‹ƒ„‹Ž‹–› ͷͲǡͲͲͲ
”‘ϐ‹– 4,61,905 ”‘ϐ‹– 6,00,000
ƒ›ƒ„Ž‡ ʹǡ͵ͺǡͲͻͷ GST Liability 50,000
 ʹǡͲͲǡͲͲͲ ȋͳΨ‘ˆ—”‘˜‡”Ȍ
GST Liability 38,095
Cash Flow 4,23,810 Cash Flow 6,00,000
Notes:
1.
Ž‹ƒ„‹Ž‹–›™‘—Ž†ǯ–‡š‹•–‹ˆŠ‡‘’–•ˆ‘”…‘’‘•‹–‹‘Ž‡˜›ƒ†–Š‡–”ƒ†‡”…ƒ‘™…Šƒ”‰‡–Š‡ˆ—ŽŽƒ‘—–
™Š‹…ŠŠ‡™ƒ•…Šƒ”‰‹‰‹…Ž—•‹˜‡‘ˆ
‡ƒ”Ž‹‡”
ʹǤ ‘”‘”ƒŽŽ‡˜›ǡ–Š‡
‹…Ž—†‡†‹•ƒŽ‡•‹•ͷͲǡͲͲǡͲͲͲȗͷȀͳͲͷ
͵Ǥ Š‡‹•ƒ˜ƒ‹Žƒ„Ž‡‹…ƒ•‡‘ˆ‘”ƒŽŽ‡˜›ƒ†‘–…‘’‘•‹–‹‘Ž‡˜›
ͶǤ ‡…‡ǡ–Š‡–ƒš‡•ȋ‹’—–Ȍƒ”‡ƒ’ƒ”–‘ˆ’—”…Šƒ•‡…‘•–•ƒ†–Š‡‘—–’—–‹•̷ͳΨ‘ˆ–Š‡–—”‘˜‡”‹…ƒ•‡‘ˆ
‘’‘•‹–‹‘‡˜›

‹…‡–Š‡„‘‘‡‡’‹‰…‘•–•ƒ”‡•—„•–ƒ–‹ƒŽŽ›Ž‘™‡”‹…ƒ•‡‘ˆ…‘’‘•‹–‹‘Ž‡˜›ǡ–Š‡’”‘ϐ‹–•ƒ†…ƒ•ŠϐŽ‘™•ƒ”‡
Š‹‰Š‡”ƒ†Š‡…‡–Š‡–”ƒ†‡”•Š‘—Ž†„‡ƒ†˜‹•‡†–‘•™‹–…Š–‘‘’‘•‹–‹‘‡˜›Ǥ

Composition Rules [Chapter II, CGST Rules, 2017]

Šƒ’–‡”‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš—Ž‡•ǡʹͲͳ͹•’‡…‹ˆ›‘’‘•‹–‹‘—Ž‡•™Š‹…ŠŽƒ›†‘™–Š‡…‘†‹–‹‘•
ƒ†”‡•–”‹…–‹‘•‘ˆ…‘’‘•‹–‹‘Ž‡˜›ǤŠ‡’‡”•‘‡š‡”…‹•‹‰–Š‡‘’–‹‘–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ•ŠƒŽŽ…‘’Ž›™‹–Š
–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǡƒ‡Ž›ǣ

Ȉ Š‡‹•‡‹–Š‡”ƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘‘”ƒ‘Ǧ”‡•‹†‡––ƒš„Ž‡’‡”•‘
a.

Ȉ –Š‡‰‘‘†•Š‡Ž†‹•–‘…„›Š‹‘–Š‡ƒ’’‘‹–‡††ƒ›Šƒ˜‡‘–„‡‡’—”…Šƒ•‡†‹–Š‡…‘—”•‡
‘ˆ‹–‡”–ƒ–‡–”ƒ†‡‘”…‘‡”…‡‘”‹’‘”–‡†ˆ”‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒ‘””‡…‡‹˜‡†ˆ”‘
Š‹•„”ƒ…Š•‹–—ƒ–‡†‘—–•‹†‡–Š‡–ƒ–‡‘”ˆ”‘Š‹•ƒ‰‡–‘”’”‹…‹’ƒŽ‘—–•‹†‡–Š‡–ƒ–‡ǡ™Š‡”‡
b. –Š‡‘’–‹‘‹•‡š‡”…‹•‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡͵
 652 Lesson 12 Ȉ EP-TL

Ȉ –Š‡‰‘‘†•Š‡Ž†‹•–‘…„›Š‹Šƒ˜‡‘–„‡‡’—”…Šƒ•‡†ˆ”‘ƒ—”‡‰‹•–‡”‡†•—’’Ž‹‡”ƒ†
™Š‡”‡’—”…Šƒ•‡†ǡŠ‡’ƒ›•–Š‡–ƒš—†‡”•‡…–‹‘ͻȋͶȌ
c.

Ȉ Š‡•ŠƒŽŽ’ƒ›–ƒš—†‡”•‡…–‹‘ͻȋ͵Ȍ‘”ͻȋͶȌ‘‹™ƒ”†•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š
d.

Ȉ Š‡™ƒ•‘–‡‰ƒ‰‡†‹–Š‡ƒ—ˆƒ…–—”‡‘ˆ‰‘‘†•ƒ•‘–‹ϐ‹‡†—†‡”…Žƒ—•‡ȋ‡Ȍ‘ˆ•—„Ǧ•‡…–‹‘
ȋʹȌ‘ˆ•‡…–‹‘ͳͲǡ†—”‹‰–Š‡’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”
e.

Ȉ Š‡•ŠƒŽŽ‡–‹‘–Š‡™‘”†•̶…‘’‘•‹–‹‘–ƒšƒ„Ž‡’‡”•‘ǡ‘–‡Ž‹‰‹„Ž‡–‘…‘ŽŽ‡…––ƒ…š‘
•—’’Ž‹‡•̶ƒ––Š‡–‘’‘ˆ–Š‡„‹ŽŽ‘ˆ•—’’Ž›‹••—‡†„›Š‹ǡ‹Ǥ‡Ǥǡ‹…‡…”‡ƒǡ’ƒƒ•ƒŽƒƒ†
f. –‘„ƒ……‘Ȍ

Ȉ Š‡•ŠƒŽŽ‡–‹‘–Š‡™‘”†•̶…‘’‘•‹–‹‘–ƒšƒ„Ž‡’‡”•‘̶‘‡˜‡”›‘–‹…‡‘”•‹‰„‘ƒ”†
†‹•’Žƒ›‡†ƒ–ƒ’”‘‹‡–’Žƒ…‡ƒ–Š‹•’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••ƒ†ƒ–‡˜‡”›ƒ††‹–‹‘ƒŽ
g. ’Žƒ…‡‘”’Žƒ…‡•‘ˆ„—•‹‡••

Intimation for composition levy [Rule 3]

ȋͳȌ ›’‡”•‘™Š‘Šƒ•„‡‡‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘‘ƒ’”‘˜‹•‹‘ƒŽ„ƒ•‹•—†‡”…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡
ʹͶƒ†™Š‘‘’–•–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲǡ•ŠƒŽŽ‡Ž‡…–”‘‹…ƒŽŽ›ϐ‹Ž‡ƒ‹–‹ƒ–‹‘‹FORM GST CMP-01,
†—Ž›•‹‰‡†‘”˜‡”‹ϐ‹‡†–Š”‘—‰Š‡Ž‡…–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘…‘†‡ǡ‘–Š‡…‘‘’‘”–ƒŽǡ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Š
ƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǡ’”‹‘”–‘–Š‡ƒ’’‘‹–‡††ƒ›ǡ„—–‘–Žƒ–‡”–Šƒ–Š‹”–›†ƒ›•
ƒˆ–‡”–Š‡•ƒ‹††ƒ›ǡ‘”•—…Šˆ—”–Š‡”’‡”‹‘†ƒ•ƒ›„‡‡š–‡†‡†„›–Š‡‘‹••‹‘‡”‹–Š‹•„‡ŠƒŽˆǣ
 ”‘˜‹†‡†–Šƒ– ™Š‡”‡–Š‡‹–‹ƒ–‹‘‹FORM GST CMP-01 ‹•ϐ‹Ž‡†ƒˆ–‡”–Š‡ƒ’’‘‹–‡††ƒ›ǡ–Š‡”‡‰‹•–‡”‡†
’‡”•‘•ŠƒŽŽ‘–…‘ŽŽ‡…–ƒ›–ƒšˆ”‘–Š‡ƒ’’‘‹–‡††ƒ›„—–•ŠƒŽŽ‹••—‡„‹ŽŽ‘ˆ•—’’Ž›ˆ‘”•—’’Ž‹‡•ƒ†‡ƒˆ–‡”
–Š‡•ƒ‹††ƒ›Ǥ
ȋʹȌ ›’‡”•‘™Š‘ƒ’’Ž‹‡•ˆ‘””‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡ͺƒ›‰‹˜‡ƒ‘’–‹‘–‘’ƒ›–ƒš—†‡”
•‡…–‹‘ͳͲ‹ƒ”–‘ˆFORM GST REG-01ǡ™Š‹…Š•ŠƒŽŽ„‡…‘•‹†‡”‡†ƒ•ƒ‹–‹ƒ–‹‘–‘’ƒ›–ƒš—†‡”–Š‡
•ƒ‹†•‡…–‹‘Ǥ
ȋ͵Ȍ ›”‡‰‹•–‡”‡†’‡”•‘™Š‘‘’–•–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ•ŠƒŽŽ‡Ž‡…–”‘‹…ƒŽŽ›ϐ‹Ž‡ƒ‹–‹ƒ–‹‘‹ 

 ǦͲʹǡ †—Ž› •‹‰‡† ‘” ˜‡”‹ϐ‹‡† –Š”‘—‰Š ‡Ž‡…–”‘‹… ˜‡”‹ϐ‹…ƒ–‹‘ …‘†‡ǡ ‘ –Š‡ …‘‘ ’‘”–ƒŽǡ ‡‹–Š‡”
†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǡ’”‹‘”–‘–Š‡…‘‡…‡‡–‘ˆ–Š‡
ϐ‹ƒ…‹ƒŽ›‡ƒ”ˆ‘”™Š‹…Š–Š‡‘’–‹‘–‘’ƒ›–ƒš—†‡”–Š‡ƒˆ‘”‡•ƒ‹†•‡…–‹‘‹•‡š‡”…‹•‡†ƒ†•ŠƒŽŽˆ—”‹•Š–Š‡
•–ƒ–‡‡–‹ 
ǦͲ͵‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ”—Ž‡ȋͶȌ‘ˆ”—Ž‡ͶͶ™‹–Š‹ƒ’‡”‹‘†‘ˆ
ȋ͸ͲȌ•‹š–›†ƒ›•ˆ”‘–Š‡…‘‡…‡‡–‘ˆ–Š‡”‡Ž‡˜ƒ–ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
ȋ͵Ȍ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ”—Ž‡•ȋͳȌǡȋʹȌƒ†ȋ͵Ȍǡƒ’‡”•‘™Š‘Šƒ•„‡‡‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘
‘ƒ’”‘˜‹•‹‘ƒŽ„ƒ•‹•—†‡””—Ž‡ʹͶ‘”™Š‘Šƒ•„‡‡‰”ƒ–‡†…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘ˆ
”—Ž‡ͳͲƒ›‘’––‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ™‹–Š‡ˆˆ‡…–ˆ”‘–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡‘–Š‹‡†‹ƒ–‡Ž›•—……‡‡†‹‰
–Š‡ ‘–Š ‹ ™Š‹…Š Š‡ ϐ‹Ž‡ ƒ ‹–‹ƒ–‹‘ ‹ 
 ǦͲʹǡ ‘ –Š‡ …‘‘ ’‘”–ƒŽ ‡‹–Š‡” †‹”‡…–Ž› ‘”
–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǡ‘‘”„‡ˆ‘”‡–Š‡͵ͳ•–†ƒ›‘ˆƒ”…ŠǡʹͲͳͺǡƒ†
 Lesson 12 Ȉ Basics of Goods and Services Tax 653

•ŠƒŽŽˆ—”‹•Š–Š‡•–ƒ–‡‡–‹ 
ǦͲ͵‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ”—Ž‡ȋͶȌ‘ˆ”—Ž‡ͶͶ
™‹–Š‹ƒ’‡”‹‘†‘ˆ‘‡Š—†”‡†ƒ†‡‹‰Š–›†ƒ›•ˆ”‘–Š‡†ƒ›‘™Š‹…Š•—…Š’‡”•‘…‘‡…‡•–‘’ƒ›–ƒš
—†‡”•‡…–‹‘ͳͲǣ
 ”‘˜‹†‡†–Šƒ––Š‡•ƒ‹†’‡”•‘••ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘ˆ—”‹•Š–Š‡†‡…Žƒ”ƒ–‹‘‹ 
Ǧͳƒˆ–‡”–Š‡
•–ƒ–‡‡–‹ 
ǦͲ͵Šƒ•„‡‡ˆ—”‹•Š‡†Ǥ
ȋͶȌ ›’‡”•‘™Š‘ϐ‹Ž‡•ƒ‹–‹ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌ–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ•ŠƒŽŽˆ—”‹•Š–Š‡†‡–ƒ‹Ž•‘ˆ
•–‘…ǡ ‹…Ž—†‹‰ –Š‡ ‹™ƒ”† •—’’Ž› ‘ˆ ‰‘‘†• ”‡…‡‹˜‡† ˆ”‘ —”‡‰‹•–‡”‡† ’‡”•‘•ǡ Š‡Ž† „› Š‹ ‘ –Š‡ †ƒ›
’”‡…‡†‹‰–Š‡†ƒ–‡ˆ”‘™Š‹…ŠŠ‡‘’–•–‘’ƒ›–ƒš—†‡”–Š‡•ƒ‹†•‡…–‹‘ǡ‡Ž‡…–”‘‹…ƒŽŽ›ǡ‹ 
ǦͲ͵ǡ
‘–Š‡…‘‘’‘”–ƒŽǡ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǡ™‹–Š‹ƒ
’‡”‹‘†‘ˆͳͺͲ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡‘’–‹‘ˆ‘”…‘’‘•‹–‹‘Ž‡˜›‹•‡š‡”…‹•‡†‘”™‹–Š‹•—…Šˆ—”–Š‡”
’‡”‹‘†ƒ•ƒ›„‡‡š–‡†‡†„›–Š‡‘‹••‹‘‡”‹–Š‹•„‡ŠƒŽˆǤ
ȋͷȌ ›‹–‹ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘”•—„Ǧ”—Ž‡ȋ͵Ȍ‘”•—„Ǧ”—Ž‡ȋ͵Ȍ‹”‡•’‡…–‘ˆƒ›’Žƒ…‡‘ˆ„—•‹‡••‹ƒ›
–ƒ–‡‘”‹‘–‡””‹–‘”›•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ‹–‹ƒ–‹‘‹”‡•’‡…–‘ˆƒŽŽ‘–Š‡”’Žƒ…‡•‘ˆ„—•‹‡••”‡‰‹•–‡”‡†
‘–Š‡•ƒ‡‡”ƒ‡–……‘—–—„‡”Ǥ

Effective date for composition levy [Rule 4]

ȋͳȌ Š‡‘’–‹‘–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ•ŠƒŽŽ„‡‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡„‡‰‹‹‰‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ǡ™Š‡”‡–Š‡
‹–‹ƒ–‹‘‹•ϐ‹Ž‡†—†‡”•—„Ǧ”—Ž‡ȋ͵Ȍ‘ˆ”—Ž‡͵ƒ†–Š‡ƒ’’‘‹–‡††ƒ›™Š‡”‡–Š‡‹–‹ƒ–‹‘‹•ϐ‹Ž‡†—†‡”•—„Ǧ
”—Ž‡‘ˆ–Š‡•ƒ‹†”—Ž‡Ǥ
ȋʹȌ Š‡‹–‹ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋʹȌ‘ˆ”—Ž‡͵ǡ•ŠƒŽŽ„‡…‘•‹†‡”‡†‘Ž›ƒˆ–‡”–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘–Š‡
ƒ’’Ž‹…ƒ–ƒ†Š‹•‘’–‹‘–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ•ŠƒŽŽ„‡‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡†ƒ–‡ϐ‹š‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌ
‘”ȋ͵Ȍ‘ˆ”—Ž‡ͳͲǤ

Validity of composition levy [Rule 6]

ȋͳȌ Š‡ ‘’–‹‘ ‡š‡”…‹•‡† „› ƒ ”‡‰‹•–‡”‡† ’‡”•‘ –‘ ’ƒ› –ƒš —†‡” •‡…–‹‘ ͳͲ •ŠƒŽŽ ”‡ƒ‹ ˜ƒŽ‹† •‘ Ž‘‰ ƒ• Š‡
•ƒ–‹•ϐ‹‡•ƒŽŽ–Š‡…‘†‹–‹‘•‡–‹‘‡†‹–Š‡•ƒ‹†•‡…–‹‘ƒ†—†‡”–Š‡•‡”—Ž‡•Ǥ
ȋʹȌ Š‡’‡”•‘”‡ˆ‡””‡†–‘‹•—„Ǧ”—Ž‡ȋͳȌ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒš—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͻˆ”‘–Š‡†ƒ›
Š‡…‡ƒ•‡•–‘•ƒ–‹•ˆ›ƒ›‘ˆ–Š‡…‘†‹–‹‘•‡–‹‘‡†‹•‡…–‹‘ͳͲ‘”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”ƒ†•ŠƒŽŽ
‹••—‡–ƒš‹˜‘‹…‡ˆ‘”‡˜‡”›–ƒšƒ„Ž‡•—’’Ž›ƒ†‡–Š‡”‡ƒˆ–‡”ƒ†Š‡•ŠƒŽŽƒŽ•‘ϐ‹Ž‡ƒ‹–‹ƒ–‹‘ˆ‘”™‹–Š†”ƒ™ƒŽ
ˆ”‘–Š‡•…Š‡‡‹FORM GST CMP-04 ™‹–Š‹•‡˜‡†ƒ›•‘ˆ–Š‡‘……—””‡…‡‘ˆ•—…Š‡˜‡–Ǥ
ȋ͵Ȍ Š‡”‡‰‹•–‡”‡†’‡”•‘™Š‘‹–‡†•–‘™‹–Š†”ƒ™ˆ”‘–Š‡…‘’‘•‹–‹‘•…Š‡‡•ŠƒŽŽǡ„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆ•—…Š
™‹–Š†”ƒ™ƒŽǡϐ‹Ž‡ƒƒ’’Ž‹…ƒ–‹‘‹ 
ͲͶǡ†—Ž›•‹‰‡†‘”˜‡”‹ϐ‹‡†–Š”‘—‰Š‡Ž‡…–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘
…‘†‡ǡ‡Ž‡…–”‘‹…ƒŽŽ›‘–Š‡…‘‘’‘”–ƒŽǤ
ȋͶȌ Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”Šƒ•”‡ƒ•‘•–‘„‡Ž‹‡˜‡–Šƒ––Š‡”‡‰‹•–‡”‡†’‡”•‘™ƒ•‘–‡Ž‹‰‹„Ž‡–‘’ƒ›–ƒš—†‡”
•‡…–‹‘ͳͲ‘”Šƒ•…‘–”ƒ˜‡‡†–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–‘”’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”ǡŠ‡ƒ›‹••—‡ƒ‘–‹…‡–‘
•—…Š’‡”•‘‹ 
ǦͲͷ–‘•Š‘™…ƒ—•‡™‹–Š‹ϐ‹ˆ–‡‡†ƒ›•‘ˆ–Š‡”‡…‡‹’–‘ˆ•—…Š‘–‹…‡ƒ•–‘™Š›
–Š‡‘’–‹‘–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ•ŠƒŽŽ‘–„‡†‡‹‡†Ǥ
ȋͷȌ ’‘”‡…‡‹’–‘ˆ–Š‡”‡’Ž›–‘–Š‡•Š‘™…ƒ—•‡‘–‹…‡‹••—‡†—†‡”•—„Ǧ”—Ž‡ȋͶȌˆ”‘–Š‡”‡‰‹•–‡”‡†’‡”•‘‹

ǦͲ͸ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ‹••—‡ƒ‘”†‡”‹ 
ǦͲ͹™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•
‘ˆ–Š‡”‡…‡‹’–‘ˆ•—…Š”‡’Ž›ǡ‡‹–Š‡”ƒ……‡’–‹‰–Š‡”‡’Ž›ǡ‘”†‡›‹‰–Š‡‘’–‹‘–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲˆ”‘
–Š‡†ƒ–‡‘ˆ–Š‡‘’–‹‘‘”ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡‡˜‡–…‘…‡”‹‰•—…Š…‘–”ƒ˜‡–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
ȋ͸Ȍ ˜‡”› ’‡”•‘ ™Š‘ Šƒ• ˆ—”‹•Š‡† ƒ ‹–‹ƒ–‹‘ —†‡” •—„Ǧ”—Ž‡ ȋʹȌ ‘” ϐ‹Ž‡† ƒ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ™‹–Š†”ƒ™ƒŽ
—†‡”•—„Ǧ”—Ž‡ȋ͵Ȍ‘”ƒ’‡”•‘‹”‡•’‡…–‘ˆ™Š‘ƒ‘”†‡”‘ˆ™‹–Š†”ƒ™ƒŽ‘ˆ‘’–‹‘Šƒ•„‡‡’ƒ••‡†‹ 

ǦͲ͹—†‡”•—„”—Ž‡ȋͷȌǡƒ›‡Ž‡…–”‘‹…ƒŽŽ›ˆ—”‹•Šƒ––Š‡…‘‘’‘”–ƒŽǡ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ
ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǡƒ•–ƒ–‡‡–‹ 
Ͳͳ…‘–ƒ‹‹‰†‡–ƒ‹Ž•‘ˆ–Š‡
•–‘…‘ˆ‹’—–•ƒ†‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…„›Š‹‘–Š‡†ƒ–‡‘
™Š‹…Š–Š‡‘’–‹‘‹•™‹–Š†”ƒ™‘”†‡‹‡†ǡ™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡ˆ”‘™Š‹…Š–Š‡‘’–‹‘
‹•™‹–Š†”ƒ™‘”ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡‘”†‡”’ƒ••‡†‹ 
ǦͲ͹ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
 654 Lesson 12 Ȉ EP-TL

ȋ͹Ȍ › ‹–‹ƒ–‹‘ ‘” ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ™‹–Š†”ƒ™ƒŽ —†‡” •—„Ǧ”—Ž‡ ȋʹȌ ‘” ȋ͵Ȍ ‘” †‡‹ƒŽ ‘ˆ –Š‡ ‘’–‹‘ –‘ ’ƒ› –ƒš
—†‡”•‡…–‹‘ͳͲ‹ƒ……‘”†ƒ…‡™‹–Š•—„Ǧ”—Ž‡ȋͷȌ‹”‡•’‡…–‘ˆƒ›’Žƒ…‡‘ˆ„—•‹‡••‹ƒ›–ƒ–‡‘”‹‘
–‡””‹–‘”›ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ‹–‹ƒ–‹‘‹”‡•’‡…–‘ˆƒŽŽ‘–Š‡”’Žƒ…‡•‘ˆ„—•‹‡••”‡‰‹•–‡”‡†‘–Š‡•ƒ‡
‡”ƒ‡–……‘—–—„‡”Ǥ

List of Forms related to Composition Scheme

Šƒ’–‡”‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš—Ž‡•ǡʹͲͳ͹•’‡…‹ˆ›‘’‘•‹–‹‘—Ž‡•™Š‹…ŠŽƒ›†‘™–Š‡ˆ‘”•–‘„‡
•—„‹––‡†„›ƒ’‡”•‘‘’–‹‰–‘„‡ƒ‘’‘•‹–‹‘‡ƒŽ‡”—†‡”‡…–‹‘ͳͲ‘ˆ–Š‡…–ǤŠ‡ˆ‘ŽŽ‘™‹‰‹•–Š‡Ž‹•–‘ˆ
ˆ‘”••’‡…‹ϐ‹‡†‹”‡Žƒ–‹‘–‘ƒ‘’‘•‹–‹‘‡ƒŽ‡”Ǥ

Form
S. No. Description Due date
Required
1.
ǦͲͳ –‹ƒ–‹‘ –‘ ’ƒ› –ƒš —†‡” •‡…–‹‘ ͳͲ ”‹‘” –‘ ƒ’’‘‹–‡† †ƒ–‡ ‘” ™‹–Š‹ ͵Ͳ
ȋŽ› ˆ‘” ’‡”•‘• ”‡‰‹•–‡”‡† —†‡” –Š‡ †ƒ›• ‘ˆ –Š‡ ƒ’’‘‹–‡† †ƒ–‡ ‘” •—…Š
‡š‹•–‹‰ Žƒ™ ‹‰”ƒ–‹‰ ‘ –Š‡ ƒ’’‘‹–‡† ˆ—”–Š‡” ’‡”‹‘† ƒ• ƒ› „‡ ‡š–‡†‡†
†ƒ›Ȍ „›–Š‡‘‹••‹‘‡”‹–Š‹•„‡ŠƒŽˆǤ
2.
ǦͲʹ –‹ƒ–‹‘ –‘ ’ƒ› –ƒš —†‡” •‡…–‹‘ ͳͲ ”‹‘” –‘ …‘‡…‡‡– ‘ˆ ϐ‹ƒ…‹ƒŽ
ȋ ‘”’‡”•‘•”‡‰‹•–‡”‡†—†‡”–Š‡…–Ȍ ›‡ƒ”ˆ‘”™Š‹…Š–Š‡•…Š‡‡‹•‘’–‡†ˆ‘”

͵Ǥ
ǦͲ͵ –‹ƒ–‹‘ ‘ˆ †‡–ƒ‹Ž• ‘ˆ •–‘… ƒ† ‹™ƒ”† ‹–Š‹ͻͲ†ƒ›•‘ˆ‡š‡”…‹•‡‘ˆ‘’–‹‘
•—’’Ž‹‡•ˆ”‘—”‡‰‹•–‡”‡†’‡”•‘
ͶǤ
ǦͲͶ –‹ƒ–‹‘Ȁ’’Ž‹…ƒ–‹‘ ˆ‘” ™‹–Š†”ƒ™ƒŽ ‹–Š‹͹†ƒ›•‘ˆ‘……—””‡…‡‘ˆ‡˜‡–
ˆ”‘…‘’‘•‹–‹‘•…Š‡‡
ͷǤ
ǦͲͷ Š‘™…ƒ—•‡‘–‹…‡‘…‘–”ƒ˜‡–‹‘‘ˆ”—Ž‡• …‘–”ƒ˜‡–‹‘
‘”ƒ…–„›’”‘’‡”‘ˆϐ‹…‡”
6.
ǦͲ͸ ‡’Ž›–‘–Š‡‘–‹…‡–‘•Š‘™…ƒ—•‡ ‹–Š‹ ͳͷ †ƒ›• ˆ”‘ •‡”˜‹…‡ ‘ˆ •—…Š
‘–‹…‡
7.
ǦͲ͹ ”†‡”ˆ‘”ƒ……‡’–ƒ…‡Ȁ”‡Œ‡…–‹‘‘ˆ”‡’Ž› –‘ ‹–Š‹͵Ͳ†ƒ›•
•Š‘™…ƒ—•‡‘–‹…‡

LIABILITY TO PAY GST

Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›
™‘—Ž††‡’‡†‘–Š‡‡…Šƒ‹•–Š‡–”ƒ•ƒ…–‹‘ƒŽ‹‰•–‘ǡƒ•—†‡”ǣ
a) Forward Charge Mechanism
 ‘”™ƒ”†…Šƒ”‰‡‘”†‹”‡…–…Šƒ”‰‡‹•–Š‡‡…Šƒ‹•™Š‡”‡–Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•‹•Ž‹ƒ„Ž‡–‘’ƒ›–ƒšǤ
‘”‹•–ƒ…‡ǡ‹ˆƒ‘’ƒ›‡…”‡–ƒ”›’”‘˜‹†‡†ƒ•‡”˜‹…‡–‘Š‹•…Ž‹‡–ǡ–Š‡•‡”˜‹…‡–ƒš™‹ŽŽ„‡’ƒ›ƒ„Ž‡„›–Š‡
‘’ƒ›‡…”‡–ƒ”›Ǥ‡”‡–Š‡•—’’Ž‹‡”‹•”‡‰‹•–‡”‡†—†‡”
ǡŠ‡‹••—‡•ƒ–ƒš‹˜‘‹…‡ǡ…‘ŽŽ‡…–•–Š‡
ƒ†
’ƒ›•‹––‘–Š‡
‘˜‡”‡–Ǥ
b) Reverse Charge Mechanism

‡‡”ƒŽŽ›ǡ–Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹•Ž‹ƒ„Ž‡–‘’ƒ›
Ǥ‘™‡˜‡”ǡ‹•’‡…‹ϐ‹……ƒ•‡•Ž‹‡‹’‘”–•ƒ†
‘–Š‡” ‘–‹ϐ‹‡† •—’’Ž‹‡•ǡ –Š‡ Ž‹ƒ„‹Ž‹–› ƒ› „‡ …ƒ•– ‘ –Š‡ ”‡…‹’‹‡– —†‡” –Š‡ ”‡˜‡”•‡ …Šƒ”‰‡ ‡…Šƒ‹•Ǥ
‡˜‡”•‡Šƒ”‰‡‡ƒ•–Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›–ƒš‹•‘–Š‡”‡…‹’‹‡–‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹•–‡ƒ†‘ˆ–Š‡
•—’’Ž‹‡”‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‹”‡•’‡…–‘ˆ‘–‹ϐ‹‡†…ƒ–‡‰‘”‹‡•‘ˆ•—’’Ž›Ǥ‡”‡–Š‡•—’’Ž‹‡”‹•‘–”‡‰‹•–‡”‡†
—†‡”
ǡŠ‡…‡ǡŠ‡…ƒ‘–‹••—‡ƒ–ƒš‹˜‘‹…‡ǡƒ†–Š‡”‡ˆ‘”‡–Š‡”‡…‹’‹‡–’ƒ›•–Š‡
‘–Š‡•—’’Ž›‘
„‡ŠƒŽˆ‘ˆ–Š‡•—’’Ž‹‡”ǡ†‹”‡…–Ž›–‘–Š‡
‘˜‡”‡–Ǥ
 –—•–„‡‘–‡†ƒŽ–Š‘—‰Šǡ–Šƒ–’—–ƒš”‡†‹–…ƒ„‡ƒ˜ƒ‹Ž‡†‹„‘–Š–Š‡ƒ„‘˜‡•…‡ƒ”‹‘•ǡ•—„Œ‡…––‘–Š‡
ˆ—Žϐ‹Ž‡–‘ˆ…‘†‹–‹‘•ˆ‘”ƒ˜ƒ‹Ž‹‰’—–ƒš”‡†‹–Ǥ
 Lesson 12 Ȉ Basics of Goods and Services Tax 655

 …ƒ•‡‘ˆǦ…‘‡”…‡ǡ–Š‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”•ǡ™Š‘ƒ”‡ƒ†ƒ–‘”‹Ž›”‡“—‹”‡†–‘”‡‰‹•–‡”™‹–Š
ǡ…‘ŽŽ‡…–
–ƒšƒ–•‘—”…‡ƒ–ƒ•’‡…‹ϐ‹‡†’‡”…‡–ƒ‰‡ƒ†’ƒ›–Š‡•ƒ‡–‘–Š‡
‘˜‡”‡–Ǥ

EXEMPTIONS UNDER GOODS & SERVICES TAX

‘˜‡”‡–•‘ˆˆ‡”‡š‡’–‹‘•™Š‹…Šƒ”‡„ƒ•‡†‘‰‘‘†•ƒ†•‡”˜‹…‡•…‘•—‡†„›Ž‘™‹…‘‡’‡‘’Ž‡ǡ’‡‘’Ž‡
Ž‹˜‹‰‹†‹•ƒ†˜ƒ–ƒ‰‡†”‡‰‹‘•ƒ†•‘‘Ǥ‡–”ƒŽ
‘˜‡”‡–Šƒ•–Š‡’‘™‡”–‘‰”ƒ–‡š‡’–‹‘‘‰‘‘†•ƒ†Ȁ‘”
•‡”˜‹…‡•‹–Š‡’—„Ž‹…‹–‡”‡•–‰‡‡”ƒŽŽ›‘”„›•’‡…‹ƒŽ‘”†‡”Ǥ

‡‡”ƒŽ‡š‡’–‹‘‹•‰”ƒ–‡†„›‘–‹ϐ‹…ƒ–‹‘ƒ†‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ’‡”•‘•Ǥ–ƒ›„‡ƒ„•‘Ž—–‡‘”…‘†‹–‹‘ƒŽǤ—…Š
‡š‡’–‹‘ƒ›„‡–‘–ƒŽ‘”’ƒ”–‹ƒŽǤ
’‡…‹ϐ‹…ǡƒŽ•‘‘™ƒ•ad hoc‡š‡’–‹‘‹•‰”ƒ–‡†–‘’‡”•‘•—†‡”…‹”…—•–ƒ…‡•‘ˆƒ‡š…‡’–‹‘ƒŽƒ–—”‡„›ƒ
special order …‘—‹…ƒ–‡†–‘–Š‡’ƒ”–›•‡‡‹‰‡š‡’–‹‘Ǥšƒ’Ž‡ǣ…Šƒ”‹–ƒ„Ž‡ǡ‡†—…ƒ–‹‘ƒŽǡ•…‹‡–‹ϐ‹…ǡ”‡•‡ƒ”…Šǡ
†‡ˆ‡…‡’—”’‘•‡‡–…Ǥ
‡–”ƒŽ
‘˜‡”‡–ƒŽ•‘Šƒ•–Š‡’‘™‡”–‘‹–‡”’”‡–„›ƒ‡š’Žƒƒ–‹‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘–‹ϐ‹…ƒ–‹‘‘”‘”†‡”ƒ–
ƒŽƒ–‡”†ƒ–‡„—–™‹–Š‹‘‡›‡ƒ”™Š‹…ŠŠƒ•”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…–Ǥ

Central or State Government, based on the recommendation of the Council ‡…–‹‘ͳͳȋ͵Ȍ

‘ˆ
…–ǡ
2017

–ƒš„Ž‡‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•‘ˆƒ›•’‡…‹ϐ‹‡††‡•…”‹’–‹‘ ‘•‹†‡”•‹–‡…‡••ƒ”›

••ƒ–‹•ϐ‹‡†–Šƒ–‹•‡…‡••ƒ”›ǡ‹
–Š‡’—„Ž‹…‹–‡”‡•– ‡…–‹‘ͳͳȋʹȌ For the purpose of clarifying the
‡…–‹‘ͳͳȋͳȌ
‘ˆ
…–ǡ ‘ˆ
…–ǡ scope or applicability of A or B
2017 2017

›‘–‹ϐ‹…ƒ–‹‘Ǧ By Special Order-B

›‘–‹ϐ‹…ƒ–‹‘
š‡’–
‡‡”ƒŽŽ› š‡’–

Ȉ „•‘Ž—–‡Ž› •‡”–ƒ‡š’Žƒƒ–‹‘‹‘”ǡƒ•
†‡”‡š…‡’–‹‘ƒŽ
ȋ‘–‘’–‹‘ƒŽȌǣ –Š‡…ƒ•‡ƒ›„‡ǡ™‹–Š‹ͳ›‡ƒ”
…‹”…—•–ƒ…‡•ǡ
‘” ȋ—…Š…Žƒ”‹ϐ‹…ƒ–‹‘–‘Šƒ˜‡
‡š’Ž‹…‹–Ž›•’‡…‹ϐ‹‡†‹
”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…–Ȍ
Ȉ —„Œ‡…––‘ •—…Š”†‡”
…‘†‹–‹‘•

Ȉ Š‘Ž‡ƒšǣ‘”
Ȉ ƒ”––ƒš Š‘Ž‡ƒš

Power to grant exemption from tax [Section 11 of CGST Act, 2017]

ȋͳȌ Š‡”‡ –Š‡
‘˜‡”‡– ‹• •ƒ–‹•ϐ‹‡† –Šƒ– ‹– ‹• ‡…‡••ƒ”› ‹ –Š‡ ’—„Ž‹… ‹–‡”‡•– •‘ –‘ †‘ǡ ‹– ƒ›ǡ ‘ –Š‡
”‡…‘‡†ƒ–‹‘• ‘ˆ –Š‡ ‘—…‹Žǡ „› ‘–‹ϐ‹…ƒ–‹‘ǡ ‡š‡’– ‰‡‡”ƒŽŽ›ǡ ‡‹–Š‡” ƒ„•‘Ž—–‡Ž› ‘” •—„Œ‡…– –‘ •—…Š
…‘†‹–‹‘•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†–Š‡”‡‹ǡ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘ˆƒ›•’‡…‹ϐ‹‡††‡•…”‹’–‹‘ˆ”‘–Š‡™Š‘Ž‡
‘”ƒ›’ƒ”–‘ˆ–Š‡–ƒšŽ‡˜‹ƒ„Ž‡–Š‡”‡‘™‹–Š‡ˆˆ‡…–ˆ”‘•—…Š†ƒ–‡ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹•—…Š‘–‹ϐ‹…ƒ–‹‘Ǥ
ȋʹȌ Š‡”‡ –Š‡
‘˜‡”‡– ‹• •ƒ–‹•ϐ‹‡† –Šƒ– ‹– ‹• ‡…‡••ƒ”› ‹ –Š‡ ’—„Ž‹… ‹–‡”‡•– •‘ –‘ †‘ǡ ‹– ƒ›ǡ ‘ –Š‡
”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›•’‡…‹ƒŽ‘”†‡”‹‡ƒ…Š…ƒ•‡ǡ—†‡”…‹”…—•–ƒ…‡•‘ˆƒ‡š…‡’–‹‘ƒŽƒ–—”‡
–‘„‡•–ƒ–‡†‹•—…Š‘”†‡”ǡ‡š‡’–ˆ”‘’ƒ›‡–‘ˆ–ƒšƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘™Š‹…Š–ƒš‹•Ž‡˜‹ƒ„Ž‡Ǥ
ȋ͵Ȍ Š‡
‘˜‡”‡–ƒ›ǡ‹ˆ‹–…‘•‹†‡”•‡…‡••ƒ”›‘”‡š’‡†‹‡–•‘–‘†‘ˆ‘”–Š‡’—”’‘•‡‘ˆ…Žƒ”‹ˆ›‹‰–Š‡•…‘’‡
‘”ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆƒ›‘–‹ϐ‹…ƒ–‹‘‹••—‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘”‘”†‡”‹••—‡†—†‡”•—„Ǧ•‡…–‹‘ȋʹȌǡ‹•‡”–
 656 Lesson 12 Ȉ EP-TL

ƒ‡š’Žƒƒ–‹‘‹•—…Š‘–‹ϐ‹…ƒ–‹‘‘”‘”†‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ„›‘–‹ϐ‹…ƒ–‹‘ƒ–ƒ›–‹‡™‹–Š‹‘‡›‡ƒ”‘ˆ
‹••—‡‘ˆ–Š‡‘–‹ϐ‹…ƒ–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘”‘”†‡”—†‡”•—„Ǧ•‡…–‹‘ȋʹȌǡƒ†‡˜‡”›•—…Š‡š’Žƒƒ–‹‘
•ŠƒŽŽŠƒ˜‡‡ˆˆ‡…–ƒ•‹ˆ‹–Šƒ†ƒŽ™ƒ›•„‡‡–Š‡’ƒ”–‘ˆ–Š‡ϐ‹”•–•—…Š‘–‹ϐ‹…ƒ–‹‘‘”‘”†‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ

ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ™Š‡”‡ƒ‡š‡’–‹‘‹”‡•’‡…–‘ˆƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šˆ”‘
–Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡–ƒšŽ‡˜‹ƒ„Ž‡–Š‡”‡‘Šƒ•„‡‡‰”ƒ–‡†ƒ„•‘Ž—–‡Ž›ǡ–Š‡”‡‰‹•–‡”‡†’‡”•‘•—’’Ž›‹‰•—…Š
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•ŠƒŽŽ‘–…‘ŽŽ‡…––Š‡–ƒšǡ‹‡š…‡••‘ˆ–Š‡‡ˆˆ‡…–‹˜‡”ƒ–‡ǡ‘•—…Š•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•
‘”„‘–ŠǤ
‹•–‹…–‹‘•„‡–™‡‡
‡‡”ƒŽš‡’–‹‘ƒ†’‡…‹ϐ‹…ȋ’‡…‹ƒŽ”†‡”Ȍš‡’–‹‘

General Exemption [Section 11(1) of CGST Act, 2017] Exemption By Special Order [Section 11(2) of CGST
Act, 2017]

Š‹•‹•‰”ƒ–‡†„›ƒ‘–‹ϐ‹…ƒ–‹‘ Š‹•‹•‰”ƒ–‡†„›ƒ•’‡…‹ƒŽ‘”†‡”
Š‹•‹•‰‘‘†•Ȁ•‡”˜‹…‡••’‡…‹ϐ‹…Ǥ›•—’’Ž‹‡”•—’’Ž›‹‰ Š‹• ‹•’‡”•‘•’‡…‹ϐ‹…ƒ†’—”’‘•‡•’‡…‹ϐ‹…ǤŠ‡‰‘‘†•
–Š‡•‡ ‘–‹ϐ‹‡† ‰‘‘†• ‘” •‡”˜‹…‡• …ƒ ‡Œ‘› –Š‡ ƒ”‡ ‰‡‡”ƒŽŽ› …Šƒ”‰‡ƒ„Ž‡ „—– ‡š‡’–‡† ‹ •’‡…‹ƒŽ
‡š‡’–‹‘ …‹”…—•–ƒ…‡• ƒ† Š‡…‡ ‘– ƒ˜ƒ‹Žƒ„Ž‡ –‘ ƒŽŽ ’‡”•‘•
‰‡‡”ƒŽŽ›
– ƒ› „‡ ƒ„•‘Ž—–‡ ‘” …‘†‹–‹‘ƒŽǤ ˆ ƒ„•‘Ž—–‡ǡ –Š‡ ‘•—…Š†‹•–‹…–‹‘
•—’’Ž‹‡” Šƒ• –‘ ƒ˜ƒ‹Ž ‹– ƒ† Š‡ …ƒ …‘ŽŽ‡…– –ƒš ‘Ž› ƒ–
‡ˆˆ‡…–‹˜‡”ƒ–‡•Ǥ
–ƒ›„‡’ƒ”–‹ƒŽ‘”–‘–ƒŽ –‹•ƒŽ™ƒ›•–‘–ƒŽ

‘–Š–Š‡‡š‡’–‹‘•ƒ”‡‰”ƒ–‡†‹–Š‡’—„Ž‹…‹–‡”‡•–ƒ†„‘–Š…ƒ„‡‡š’Žƒ‹‡†™‹–Š‹‘‡›‡ƒ”‘ˆ‹••—‡„›–Š‡
‰‘˜‡”‡–ǤŽŽ–Š‡‡š‡’–‹‘•ƒ”‡„ƒ•‡†‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹ŽǤ
‡…–‹‘͸‘ˆ–Š‡
…–ǡʹͲͳ͹ƒŽ•‘…‘–ƒ‹••‹‹Žƒ”’”‘˜‹•‹‘•ƒ†‡š‡’–‹‘‘ˆ
‹•‰”ƒ–‡†‘‹–‡”–ƒ–‡
•—’’Ž›Ǥ
Exemptions under GST
š‡’–•—’’Ž›Šƒ•„‡‡†‡ϐ‹‡†ƒ••—’’Ž›‘ˆƒ›‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡ™Š‹…Šƒ––”ƒ…–ƒ”ƒ–‡‘ˆ–ƒšǡ‘”™Š‹…Š
ƒ›„‡™Š‘ŽŽ›‡š‡’–ˆ”‘–ƒšǡƒ†–Š‡”‡ˆ‘”‡‹…Ž—†‡•‘Ǧ–ƒšƒ„Ž‡•—’’Ž‹‡•Ǥ
••‡–‹ƒŽ‰‘‘†•Ȁ•‡”˜‹…‡•ǡŠƒ˜‡„‡‡‡š‡’–‡†ǡ•‘‡‘ˆ–Š‡‡›‘‡•ƒ”‡ǣ
ƒȌ „”ƒ†‡†ƒ––ƒȀ„‡•ƒȀƒ‹†ƒ
„Ȍ ‹Ž
…Ȍ ‰‰•
†Ȍ —”†
‡Ȍ ”‡•Š˜‡‰‡–ƒ„Ž‡•
ˆȌ ‡ƒŽ–Š…ƒ”‡Ƭ
‰Ȍ †—…ƒ–‹‘
ŠȌ ‡”˜‹…‡•„›–Š‡
‘˜‡”‡–ȋ‡š…‡’–‘•–ˆϐ‹…‡ǡ–”ƒ•’‘”–‘ˆ‰‘‘†•Ȁ’ƒ••‡‰‡”•‡–…ǤȌ
‹Ȍ ‡”˜‹…‡•„›
ŒȌ ‡”˜‹…‡•„›Ȁ 
Ȍ ‡”˜‹…‡•„›ǡǤ
Lesson 12 Ȉ Basics of Goods and Services Tax 657

Difference between Nil Rated, Exempt, Zero Rated and Non-GST supplies

Supply Name Description

‡”‘ƒ–‡† š’‘”–•
—’’Ž‹‡•ƒ†‡–‘‘”‡˜‡Ž‘’‡”•Ǥ
‹Žƒ–‡† —’’Ž‹‡•–Šƒ–Šƒ˜‡ƒ†‡…Žƒ”‡†”ƒ–‡‘ˆͲΨ
Ǥ
Example: ƒŽ–ǡ‰”ƒ‹•ǡŒƒ‰‰‡”›‡–…Ǥ
š‡’– —’’Ž‹‡•ƒ”‡–ƒšƒ„Ž‡„—–†‘‘–ƒ––”ƒ…–
ƒ†ˆ‘”™Š‹…Š…ƒ‘–„‡…Žƒ‹‡†Ǥ
Example: ”‡•Š‹Žǡ ”‡•Šˆ”—‹–•ǡ—”†ǡ”‡ƒ†‡–…Ǥ
‘Ǧ
 Š‡•‡•—’’Ž‹‡•†‘‘–…‘‡—†‡”–Š‡’—”˜‹‡™‘ˆ
Žƒ™Ǥ
Example:Ž…‘Š‘Žˆ‘”Š—ƒ…‘•—’–‹‘ǡ‡–”‘Ž‡–…Ǥ

LESSON ROUND-UP

Ȉ
†‘‡•ƒ™ƒ›™‹–Š–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–•‘ˆ–ƒšƒ–‹‘ǡ„›’”‘˜‹†‹‰ƒ…‘’”‡Š‡•‹˜‡ƒ†…‘–‹—‘—•…Šƒ‹
‘ˆ–ƒš…”‡†‹–•ǡ‡†–‘‡†ƒ†–ƒš‹‰‘Ž›–Š‡˜ƒŽ—‡Ǧƒ††ƒ–‡˜‡”›•–ƒ‰‡Ǥ
Ȉ †‹ƒŠƒ•ƒ†‘’–‡†ƒ†—ƒŽ
‘†‡Žǡ‹Ǥ‡Ǥǡ™Š‡”‡–Š‡–ƒš‹•‹’‘•‡†…‘…—””‡–Ž›„›–Š‡‡–”‡ƒ†–Š‡
–ƒ–‡•Ǥ ‘”ƒ‹–”ƒǦ–ƒ–‡•ƒŽ‡ǡ–Š‡
‹•‡“—ƒŽŽ›†‹˜‹†‡†„‡–™‡‡–Š‡‡–”‡ƒ†–Š‡–ƒ–‡ȋ
Ϊ
Ȍǡ
ƒ†ˆ‘”‹–‡”Ǧ–ƒ–‡•ƒŽ‡•ǡ–Š‡
‹•…‘ŽŽ‡…–‡†„›–Š‡‡–”‡ȋ
ȌǤ
Ȉ Š‡‡š‡’–‹‘•ˆ”‘
ƒ”‡–Š‘•‡–Šƒ–Šƒ˜‡„‡‡‡’–‘—–‘ˆ•…‘’‡ƒ†Šƒ˜‡„‡‡‘–‹ϐ‹‡†•‡’ƒ”ƒ–‡Ž›Ǥ
Ȉ Š‡–ƒšƒ„Ž‡‡˜‡–‹••—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘ǡ†—”‹‰–Š‡…‘—”•‡‘ˆ„—•‹‡••Ȁˆ‘”
ˆ—”–Š‡”ƒ…‡ ‘ˆ „—•‹‡•• „› ƒ –ƒšƒ„Ž‡ ’‡”•‘ǡ ƒ† ‡š…‡’–‹‘• –‘ –Š‹• Šƒ˜‡ „‡‡ •‡– ‘—– ‹ –Š‡ •‡’ƒ”ƒ–‡
•…Š‡†—Ž‡•Ǥ
Ȉ ‡›†‹ˆˆ‡”‡…‡•„‡–™‡‡ƒ…‘’‘•‹–‡Ƭ‹š‡†•—’’Ž›ƒ”‡–Šƒ––Š‡•—’’Ž‹‡•™‹–Š‹ƒ…‘’‘•‹–‡•—’’Ž›ƒ”‡
ƒ–—”ƒŽŽ› „—†Ž‡† ™Š‡”‡ƒ• ™‹–Š‹ ƒ ‹š‡† •—’’Ž› ƒ”‡ †‡Ž‹„‡”ƒ–‡Ž› „—†Ž‡† ƒ† –Šƒ– ‹ –Š‡ …‘’‘•‹–‡
•—’’Ž›ǡ–Š‡’”‹…‹’ƒŽ•—’’Ž›‹•†‹•…‡”‹„Ž‡ǡ™Š‡”‡ƒ•–Šƒ–‹•ǯ––Š‡…ƒ•‡‹ƒ‹š‡†•—’’Ž›Ǥ

GLOSSARY

Ȉ Taxable Event: Š‡–ƒšƒ„Ž‡‡˜‡–—†‡”

•ŠƒŽŽ„‡–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†‡ˆ‘”
…‘•‹†‡”ƒ–‹‘‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••ǤŠ‡–ƒšƒ„Ž‡‡˜‡–•—†‡”–Š‡‡š‹•–‹‰‹†‹”‡…––ƒšŽƒ™•
•—…Šƒ•ƒ—ˆƒ…–—”‡ǡ•ƒŽ‡ǡ‘”’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡••ŠƒŽŽ•–ƒ†•—„•—‡†‹–Š‡–ƒšƒ„Ž‡‡˜‡–‘™ƒ•Ǯ•—’’Ž›ǯǤ
Ȉ Composite supply ‹•ƒ•—’’Ž›…‘•‹•–‹‰‘ˆ–™‘‘”‘”‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘”
ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ™Š‹…Šƒ”‡„—†Ž‡†‹ƒ–—”ƒŽ…‘—”•‡ƒ†ƒ”‡•—’’Ž‹‡†‹…‘Œ—…–‹‘™‹–Š‡ƒ…Š
‘–Š‡”‹–Š‡‘”†‹ƒ”›…‘—”•‡‘ˆ„—•‹‡••ƒ†™Š‡”‡‘‡‘ˆ™Š‹…Š‹•ƒ’”‹…‹’ƒŽ•—’’Ž›Ǥ ‘”‡šƒ’Ž‡ǡ™Š‡
ƒ…‘•—‡”„—›•ƒ–‡Ž‡˜‹•‹‘•‡–ƒ†Š‡ƒŽ•‘‰‡–•™ƒ””ƒ–›ƒ†ƒƒ‹–‡ƒ…‡…‘–”ƒ…–™‹–Š–Š‡ǡ–Š‹•
•—’’Ž› ‹• ƒ …‘’‘•‹–‡ •—’’Ž›Ǥ  –Š‹• ‡šƒ’Ž‡ǡ •—’’Ž› ‘ˆ  ‹• –Š‡ ’”‹…‹’ƒŽ •—’’Ž›ǡ ™ƒ””ƒ–› ƒ†
ƒ‹–‡ƒ…‡•‡”˜‹…‡ƒ”‡ƒ…‹ŽŽƒ”›Ǥ
Ȉ Mixed Supply‡ƒ•–™‘‘”‘”‡‹†‹˜‹†—ƒŽ•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ
ƒ†‡‹…‘Œ—…–‹‘™‹–Š‡ƒ…Š‘–Š‡”„›ƒ–ƒšƒ„Ž‡’‡”•‘ˆ‘”ƒ•‹‰Ž‡’”‹…‡™Š‡”‡•—…Š•—’’Ž›†‘‡•‘–
…‘•–‹–—–‡ ƒ …‘’‘•‹–‡ •—’’Ž›Ǥ ‘” ‡šƒ’Ž‡ǡ ƒ •—’’Ž› ‘ˆ ’ƒ…ƒ‰‡ …‘•‹•–‹‰ ‘ˆ …ƒ‡† ˆ‘‘†•ǡ •™‡‡–•ǡ
…Š‘…‘Žƒ–‡•ǡ …ƒ‡•ǡ †”› ˆ”—‹–•ǡ ƒ‡”ƒ–‡† †”‹ ƒ† ˆ”—‹– Œ—‹…‡ ™Š‡ •—’’Ž‹‡† ˆ‘” ƒ •‹‰Ž‡ ’”‹…‡ ‹• ƒ ‹š‡†
•—’’Ž›Ǥƒ…Š‘ˆ–Š‡•‡‹–‡•…ƒ„‡•—’’Ž‹‡†•‡’ƒ”ƒ–‡Ž›ƒ†‹–‹•‘–†‡’‡†‡–‘ƒ›‘–Š‡”Ǥ–•ŠƒŽŽ‘–„‡
ƒ‹š‡†•—’’Ž›‹ˆ–Š‡•‡‹–‡•ƒ”‡•—’’Ž‹‡†•‡’ƒ”ƒ–‡Ž›Ǥ
658 Lesson 12 Ȉ EP-TL

TEST YOURSELF
(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
Multiple Choice Questions (MCQs)
1. Š‡ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ •—’’Ž› ™‹ŽŽ „‡ …Šƒ”‰‡† ƒ– –Š‡ ”ƒ–‡ ƒ’’Ž‹…ƒ„Ž‡ –‘ –Š‡ •—’’Ž› –Šƒ–
ƒ––”ƒ…–•–Š‡Š‹‰Š‡•–”ƒ–‡‘ˆ–ƒšˆ”‘™‹–Š‹–Š‡…‘•‘Ž‹†ƒ–‡†’ƒ…ƒ‰‡
ƒȌ ‹š‡†
„Ȍ ‘’‘•‹–‡
…Ȍ ”‹…‹’ƒŽ
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋƒȌ
2. ›Ž‡ƒ•‡ǡ–‡ƒ…›ǡ‡ƒ•‡‡–ǡŽ‹…‡…‡–‘‘……—’›Žƒ†Ȃ
ƒȌ —’’Ž›‘ˆ‡”˜‹…‡•
„Ȍ —’’Ž›‘ˆ
‘‘†•
…Ȍ ›‘ˆ–Š‡„‘˜‡
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣƒ
͵Ǥ  ̴̴̴̴̴̴̴̴̴̴Ž‹•–•†‘™–Š‡ƒ…–‹˜‹–‹‡•™Š‹…Š•ŠƒŽŽ„‡–”‡ƒ–‡†‡‹–Š‡”ƒ••—’’Ž›‘ˆ‰‘‘†•‘”•—’’Ž›‘ˆ
•‡”˜‹…‡•Ǥ
ƒȌ …Š‡†—Ž‡
„Ȍ …Š‡†—Ž‡
…Ȍ …Š‡†—Ž‡
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ…Ȍ
4. ‡…–‹‘ͳͲ‘ˆ–Š‡
…–ǡʹͲͳ͹…‘–ƒ‹•’”‘˜‹•‹‘•”‡Žƒ–‡†–‘̴̴̴̴̴̴̴Ǥ
ƒȌ ”‘…‡†—”‡ˆ‘””‡‰‹•–”ƒ–‹‘
„Ȍ ‘’‘•‹–‹‘…Š‡‡
…Ȍ ‡ƒ‹‰ƒ†…‘’‡‘ˆ—’’Ž›
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ„Ȍ
5. ƒšƒ„Ž‡‡˜‡–—†‡”
‹•̴̴̴̴̴̴̴̴̴̴Ǥ
ƒȌ —’’Ž›
„Ȍ ƒ—ˆƒ…–—”‡
…Ȍ —”…Šƒ•‡
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋƒȌ

LIST OF FURTHER READINGS

Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒšǡƒ™•ǡ‘…‡’–•ƒ†’ƒ…–ƒŽ›•‹•ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽƬƒŒ‡‡˜
ƒŽŠ‘–”ƒǤ
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›Ǥ
Ȉ  …‘’Ž‡–‡ ‰—‹†‡ –‘
‘‘†• Ƭ ‡”˜‹…‡• ƒš ‡ƒ†› ‡…‘‡” ‹  Ƭ  ‘”ƒ–Ǧ Ž‘‘•„—”› Ȃ ”Ǥ ƒŒ‹˜
‰ƒ”™ƒŽƬƒŒ‡‡˜ƒŽŠ‘–”ƒǤ
 Concept of Time, Value and
Lesson 13 Place of Taxable Supply
Key Concepts One Learning Objectives Regulatory
Should Know
To understand Framework
Ȉ —’’Ž› 1. Central Goods and Services
Ȉ ƒ”‹‘—•…‘…‡’–•”‡Žƒ–‹‰
Ȉ ƒšƒ„Ž‡˜‡– Tax Act, 2017
–‘•—’’Ž›‘ˆ‰‘‘†•ƒ†
Ȉ –”ƒǦ–ƒ–‡—’’Ž› •‡”˜‹…‡• Section Deals with
‡…–‹‘͹ …‘’‡‘ˆ—’’Ž›
Ȉ –‡”Ǧ–ƒ–‡—’’Ž› Ȉ Š‡ƒ–—”‡‘ˆ•—’’Ž›ƒ•–‘
‹–”ƒƒ†‹–‡”•–ƒ–‡ ‡…–‹‘ͳʹ ‹‡‘ˆ—’’Ž›‘ˆ
‘‘†•
Ȉ ”ƒ•ƒ…–‹‘ƒŽ—‡ ‡…–‹‘ͳ͵ ‹‡‘ˆ—’’Ž›‘ˆ‡”˜‹…‡•
Ȉ Žƒ…‡‘ˆ•—’’Ž›
‡…–‹‘ͳͶ ‹‡‘ˆ—’’Ž›‹…ƒ•‡‘ˆ
Ȉ ‹‡‘ˆ•—’’Ž›ƒ† …Šƒ‰‡‹”ƒ–‡
Ȉ ƒŽ—‡‘ˆ•—’’Ž›ƒ†–Š‡ ‡…–‹‘ͳͷ ƒŽ—‡‘ˆ—’’Ž›
”‡Žƒ–‡†—Ž‡• 2. Integrated Goods and
Services Tax Act, 2017
Section Deals with
‡…–‹‘͹ –‡”Ǧ–ƒ–‡—’’Ž›
‡…–‹‘ͺ –”ƒǦ–ƒ–‡—’’Ž›
‡…–‹‘ͻ —’’Ž‹‡• ‹ ‡””‹–‘”‹ƒŽ
ƒ–‡”•
‡…–‹‘ͳͲ Žƒ…‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•
‡…–‹‘ͳͳ Žƒ…‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•
‹’‘”–‡†‹–‘ǡ‘”
‡š’‘”–‡†ˆ”‘†‹ƒ
‡…–‹‘ͳʹ Žƒ…‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•
™Š‡”‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”
ƒ†”‡…‹’‹‡–‹•‹†‹ƒ
‡…–‹‘ͳ͵ Žƒ…‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•
™Š‡”‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”
‘” Ž‘…ƒ–‹‘ ‘ˆ ”‡…‹’‹‡– ‹•
‘—–•‹†‡†‹ƒ

Lesson Outline
Ȉ ‘…‡’–‘ˆ—’’Ž›
Ȉ ‡‰—Žƒ–‘”› ”ƒ‡™‘”
Ȉ ƒ•‹……‘…‡’–•”‡Žƒ–‹‰–‘ƒ–—”‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ƒ†
•‡”˜‹…‡•
Ȉ Žƒ…‡‘ˆ—’’Ž›‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•
Ȉ ”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–‹‡‘ˆ•—’’Ž›
Ȉ ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•
Ȉ 
Ȉ 
Ȉ   

 660 Lesson 13 Ȉ EP-TL

CONCEPT OF SUPPLY
—’’Ž›‡ƒ•–‘ƒ‡•‘‡–Š‹‰ƒ˜ƒ‹Žƒ„Ž‡–‘•‘‡‘‡™Š‘‡‡†•
ƒšƒ„Ž‡ ‡˜‡– ‡ƒ• ƒ ‡˜‡– ‘” •‹–—ƒ–‹‘
‹–ǤŠ‡˜ƒ”‹‘—•–ƒšƒ„Ž‡‡˜‡–•‹’”‡Ǧ
”‡‰‹‡•—…Šƒ•’—”…Šƒ•‡ǡ
™Š‹…Š‰‹˜‡•”‹•‡–‘–ƒšŽ‹ƒ„‹Ž‹–›Ǥ
•ƒŽ‡ǡƒ—ˆƒ…–—”‹‰ǡ•‡”˜‹…‡ǡ‡–”›–ƒš‡–…ǤŠƒ˜‡„‡‡•—„•—‡†‹
—’’Ž›Ǥ —’’Ž› ‹…Ž—†‡• •ƒŽ‡•ǡ „ƒ”–‡” –”ƒ•ˆ‡”ǡ ‡š…Šƒ‰‡ǡ Ž‹…‡•‡ǡ ƒšƒ„Ž‡‡˜‡–—†‡”
‹•—’’Ž›‘ˆ
‘‘†•
”‡–ƒŽǡ Ž‡ƒ•‡ ƒ† †‹•’‘•ƒŽǤ ˆ ƒ ’‡”•‘ —†‡”–ƒ‡• ƒ› ‘ˆ –Š‡•‡ ‘”‡”˜‹…‡•‘”„‘–Šˆ‘”‘•‹†‡”ƒ–‹‘Ǥ
–”ƒ•ƒ…–‹‘• †—”‹‰ –Š‡ …‘—”•‡ ‘” ˆ—”–Š‡”ƒ…‡ ‘ˆ „—•‹‡•• ˆ‘”
…‘•‹†‡”ƒ–‹‘Ǥ–‹•ƒŽŽ‡†—’’Ž›ǤŠ‡…‘’‡‘ˆ•—’’Ž›Šƒ•„‡‡‰‹˜‡—†‡”‡…–‹‘͹‘ˆ–Š‡
…–ǡʹͲͳ͹Ǥ
‹‡‘ˆ•—’’Ž›•‹‰‹ϐ‹‡•–Š‡’‘‹–‘ˆŽ‡˜›ƒ†˜ƒŽ—‡‘ˆ•—’’Ž›†‡–‡”‹‡•˜ƒŽ—‡‘™Š‹…Š
‹•’ƒ›ƒ„Ž‡Ǥ
For more details about Supply: Please read Lesson 12 – Basics of Goods and Services Tax of this book.
Nature of Supply [Section 7 to 9 of Integrated Goods & Services Tax Act, 2017]

‘‘†•ƒ†‡”˜‹…‡•ƒšȋ
Ȍ‡˜‹•ƒ‰‡•–™‘–›’‡•‘ˆ•—’’Ž›ǡ‹–”ƒǦ–ƒ–‡ƒ†‹–‡”Ǧ–ƒ–‡Ǥ†‡”
—’’Ž›‘ˆ
‘‘†•
‘”‡”˜‹…‡•™‹–Š‹–Š‡•ƒ‡•–ƒ–‡‘”‹‘‡””‹–‘”›‹•…ƒŽŽ‡†‹–”ƒǦ–ƒ–‡—’’Ž›ǤŠ‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•
ˆ”‘‘‡•–ƒ–‡–‘ƒ‘–Š‡”‹•–‡”‡†ƒ•‹–‡”Ǧ–ƒ–‡•—’’Ž›—†‡”
ǤŠ‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡‹ŽŽ—•–”ƒ–‡•–Š‡’”‹…‹’Ž‡•–‘
„‡ƒ’’Ž‹‡†ˆ‘”†‡–‡”‹‹‰™Š‡–Š‡”ƒ•—’’Ž›‹•‹–”ƒǦ•–ƒ–‡‘”‹–‡”Ǧ•–ƒ–‡Ǥ–—†‡–•ƒ›‘–‡–Šƒ–‹–‹•‹’‘”–ƒ––‘
‘™™Š‡–Š‡”ƒ‰‹˜‡•—’’Ž›‹•‹–‡”Ǧ–ƒ–‡‘”‹–”ƒǦ–ƒ–‡ƒ•–Š‡–ƒš‘”–ƒš‡•’ƒ›ƒ„Ž‡ƒ”‡†‹ˆˆ‡”‡–‹‡ƒ…Š…ƒ•‡Ǥ ‘”
‡šƒ’Ž‡ǡ
‹•’ƒ›ƒ„Ž‡ˆ‘”‹–‡”Ǧ–ƒ–‡•—’’Ž›ƒ†
Ϊ
‹•’ƒ›ƒ„Ž‡ˆ‘”‹–”ƒǦ–ƒ–‡•—’’Ž›Ǥ
‡…–‹‘͹‘ˆ–Š‡
…–ǡʹͲͳ͹†‡ƒŽ•™‹–Š–Š‡•‹–—ƒ–‹‘•™Š‡”‡ƒ•—’’Ž›‹•…ƒ–‡‰‘”‹œ‡†ƒ•‹–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ—…Š
•‹–—ƒ–‹‘•ƒ”‡–ƒ„—Žƒ–‡†ƒ•—†‡”Ȃ

Transaction Type Goods Services Nature of

supply
Domestic
—’’Ž›‘ˆ‰‘‘†•ȏ‡…–‹‘͹ȋͳȌȐ‘”•—’’Ž›‘ˆ•‡”˜‹…‡• –™‘†‹ˆˆ‡”‡––ƒ–‡•Ǣ –‡”Ǧ–ƒ–‡
ȏ‡…–‹‘ ͹ȋ͵ȌȐ ™Š‡”‡ Ž‘…ƒ–‹‘ ‘ˆ –Š‡ •—’’Ž‹‡” ƒ† –™‘†‹ˆˆ‡”‡–‹‘–‡””‹–‘”‹‡•Ǣ‘”
–Š‡’Žƒ…‡‘ˆ•—’’Ž›ƒ”‡‹ ƒ–ƒ–‡ƒ†ƒ‹‘–‡””‹–‘”›

Imports
—’’Ž›‘ˆ’‘”–‡†‰‘‘†•‹–‘–Š‡–‡””‹–‘”›‘ˆ†‹ƒ –‡”Ǧ–ƒ–‡
–‹ŽŽ –Š‡› …”‘•• –Š‡ …—•–‘• ˆ”‘–‹‡”• ‘ˆ †‹ƒ
ȏ‡…–‹‘͹ȋʹȌȐ
ȏ ‘”‡šǤ‹‰Š‡ƒƒŽ‡•Ȑ
—’’Ž› ‘ˆ •‡”˜‹…‡ ‹’‘”–‡† ‹–‘ –Š‡ –‡””‹–‘”› ‘ˆ –‡”Ǧ–ƒ–‡
†‹ƒȏ‡…–‹‘͹ȋͶȌȐ

Exports and other scenarios

—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǡǦ –‡”Ǧ–ƒ–‡
—’’Ž›
Š‡”‡–Š‡•—’’Ž‹‡”‹•Ž‘…ƒ–‡†‹†‹ƒƒ†–Š‡’Žƒ…‡‘ˆ
•—’’Ž› ‹•‘—–•‹†‡†‹ƒ

–‘ ‘” „› ƒ ’‡…‹ƒŽ …‘‘‹… ‘‡ †‡˜‡Ž‘’‡” ‘” ƒ

’‡…‹ƒŽ…‘‘‹…‘‡ȋȌ—‹–

‹ –Š‡ –ƒšƒ„Ž‡ –‡””‹–‘”›ǡ ‘– „‡‹‰ ƒ ‹–”ƒǦ–ƒ–‡

•—’’Ž›ƒ†‘–…‘˜‡”‡†‡Ž•‡™Š‡”‡‹–Š‹••‡…–‹‘
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 661

‡…–‹‘ͺ‘ˆ–Š‡
…–†‡ƒŽ•™‹–Š–Š‡•‹–—ƒ–‹‘•™Š‡”‡ƒ•—’’Ž›‹•…ƒ–‡‰‘”‹œ‡†ƒ•‹–”ƒǦ–ƒ–‡•—’’Ž›Ǥ—…Š•‹–—ƒ–‹‘•
ƒ”‡–ƒ„—Žƒ–‡†ƒ•—†‡”Ȃ

Intra State Supply

Supply of Goods [Section 8(1)] Services [Section 8(2)] Nature of Supply
Š‡”‡Ž‘…ƒ–‹‘‘ˆ–Š‡ •ƒ‡–ƒ–‡‘”•ƒ‡‹‘‡””‹–‘”› –”ƒǦ–ƒ–‡
•—’’Ž‹‡” ƒ† –Š‡ ’Žƒ…‡ ‘ˆ
•—’’Ž›ƒ”‡‹

••‡–‹ƒŽŽ›ǡ‹ˆ–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹•™‹–Š‹–Š‡•ƒ‡•–ƒ–‡ǡ‹–‹•ƒ–”ƒǦ–ƒ–‡•—’’Ž›ǡƒ†
‹ˆ–Š‡•‡ƒ”‡‹†‹ˆˆ‡”‡–•–ƒ–‡•ǡ–Š‡–Šƒ–‹•–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ
What is not intra-State supply?
ȋ‹Ȍ —’’Ž›‘ˆ‰‘‘†•–‘ƒ†„›†‡˜‡Ž‘’‡”‘”ƒ—‹–ȏ‡˜‡‹ˆ–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ƒ†”‡…‹’‹‡–ƒ”‡‹–Š‡
•ƒ‡•–ƒ–‡‘”—‹‘–‡””‹–‘”›Ȑ
ȋ‹‹Ȍ —’’Ž›‘ˆ‹’‘”–‡†‰‘‘†•‹–‘–Š‡–‡””‹–‘”›‘ˆ†‹ƒ–‹ŽŽ–Š‡›…”‘••–Š‡…—•–‘•ˆ”‘–‹‡”•‘ˆ†‹ƒȏˆ‘”‡šƒ’Ž‡
‹‰Š‡ƒƒŽ‡•Ȑ
ȋ‹‹‹Ȍ —’’Ž‹‡•ƒ†‡–‘ƒ–‘—”‹•––‹ŽŽ–Š‡›…”‘••–Š‡…—•–‘ˆ”‘–‹‡”•‘ˆ†‹ƒǤ
ƒ”Ž‹‡”ǡ’—”…Šƒ•‡•ƒ†‡„›ˆ‘”‡‹‰–‘—”‹•–•‹†‹ƒ™‡”‡…Šƒ”‰‡ƒ„Ž‡–‘ȀǤ‘™—†‡”
”‡‰‹‡ǡ
’ƒ‹†
‘‰‘‘†•–ƒ‡‘—–‘ˆ†‹ƒ„›ƒˆ‘”‡‹‰–‘—”‹•–™‹ŽŽ„‡–”‡ƒ–‡†ƒ–’ƒ”™‹–Š‡š’‘”–•ƒ†–ƒš’ƒ‹†ǡ‹ˆƒ›ǡ•ŠƒŽŽ„‡
”‡ˆ—†‡†—†‡”–Š‡
…–ǡʹͲͳ͹ǤŠ‹•’”ƒ…–‹…‡‹•–‘…‘ˆ‘”–‘‰Ž‘„ƒŽ–ƒšƒ–‹‘’‘Ž‹…‹‡•Ǥ
Š‡ˆ‘ŽŽ‘™‹‰•—’’Ž‹‡•™‹ŽŽ„‡–”‡ƒ–‡†ƒ•–‡”Ǧ–ƒ–‡•—’’Ž‹‡•ǣ
ȋ‹Ȍ —’’Ž‹‡•”‡…‡‹˜‡†‹‘‡•–‹…ƒ”‹ˆˆ”‡ƒˆ”‘—‹–Ž‘…ƒ–‡†‹‘‹†ƒǤ
ȋ‹‹Ȍ —’’Ž‹‡•ƒ†‡–‘†‡˜‡Ž‘’‡”‹ƒ†Žƒˆ”‘Š‡†ƒ„ƒ†Ǥ
ȋ‹‹‹Ȍ
‘‘†•‹’‘”–‡†ˆ”‘ ”ƒ…‡Ǥ
ȋ‹˜Ȍ
‘‘†• •‘Ž† „› –Š‡ ‹’‘”–‡” Ž‘…ƒ–‡† ‹ ‘‹†ƒ –‘ ƒ ’‡”•‘ Ž‘…ƒ–‡† ‹ —†Š‹ƒƒ „‡ˆ‘”‡ –Š‡ „‹ŽŽ ‘ˆ ‡–”› ˆ‘”
…Ž‡ƒ”ƒ…‡ˆ”‘–Š‡…—•–‘•ƒ”‡ƒ‹•ϐ‹Ž‡†„›–Š‡‹’‘”–‡”Ǥ
ȋ˜Ȍ —’’Ž‹‡”‹•‹‡ŽŠ‹ƒ†•—’’Ž›‹•ƒ†‡‹™‹–œ‡”Žƒ†Ǥ
ȋ˜‹Ȍ —’’Ž‹‡”‹•™‹–Š‹ƒŒƒ•–Šƒƒ†•—’’Ž›‹•ƒ†‡‹—Œƒ„ǡ’Žƒ…‡‘ˆ•—’’Ž›„‡‹‰—Œƒ„Ǥ
ȋ˜‹‹Ȍ —’’Ž‹‡”‹•‹Šƒ†‹‰ƒ”ŠȋȌƒ†•—’’Ž›‹•ƒ†‡‹‹ƒ…ŠƒŽ”ƒ†‡•ŠǤ

ƒ‡•–ƒ–‡ǣ‹–”ƒǦ–ƒ–‡•—’’Ž›

‹ˆˆ‡”‡–•–ƒ–‡•ǣ‹–‡”Ǧ–ƒ–‡•—’’Ž›
 662 Lesson 13 Ȉ EP-TL

Supply in Territorial Waters [Section 9 IGST Act, 2017]

‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‹•…–Ȃ
ȋƒȌ ™Š‡”‡–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡•—’’Ž‹‡”‹•‹–Š‡–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ•—…Š•—’’Ž‹‡”Ǣ‘”
ȋƒȌ ™Š‡”‡–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹•‹–Š‡–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›ǡ
•ŠƒŽŽǡˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…–ǡ„‡†‡‡‡†–‘„‡‹–Š‡…‘ƒ•–ƒŽ–ƒ–‡‘”‹‘–‡””‹–‘”›™Š‡”‡–Š‡‡ƒ”‡•–’‘‹–‘ˆ
–Š‡ƒ’’”‘’”‹ƒ–‡„ƒ•‡Ž‹‡‹•Ž‘…ƒ–‡†Ǥ
Š‡‡š’”‡••‹‘–‡””‹–‘”‹ƒŽ™ƒ–‡”•Šƒ˜‡‘–„‡‡†‡ϐ‹‡†—†‡”–Š‡
Žƒ™Ǥ–•Š‘—Ž†„‡—†‡”•–‘‘†ƒ•–Š‡ƒ”‡ƒ—’–‘
ͳʹƒ—–‹…ƒŽ‹Ž‡•ˆ”‘„ƒ•‡Ž‹‡‘ˆ•‡ƒ…‘ƒ•–‹–‘–Š‡•‡ƒǤ
Note: 1ƒ—–‹…ƒŽ‹Ž‡αͳǤͺͷ͵ƒ’’”‘š‹ƒ–‡Ž›
ˆ–Š‡•—’’Ž‹‡”‹•‹–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”‘”‹ˆ–Š‡•—’’Ž›‹•‹–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǡ–Š‡’Žƒ…‡‘ˆ
•—’’Ž‹‡••ŠƒŽŽ„‡–ƒ‡ƒ•–Š‡…‘ƒ•–ƒŽ•–ƒ–‡‘”‹‘‡””‹–‘”›…Ž‘•‡•––‘–Š‡„ƒ•‡Ž‹‡Ǥ
Example 1:—’’‘•‡–Š‡”‡‹•ƒ•—’’Ž›ˆ”‘–Š‡–‡””‹–‘”‹ƒŽ™ƒ–‡”•™Š‡”‡–Š‡•—’’Ž‹‡”‹•Ž‘…ƒ–‡†ƒ†–Š‡‡ƒ”‡•–„ƒ•‡
Ž‹‡‹•ƒ–ƒ†Žƒǡ
—Œƒ”ƒ–•–ƒ–‡ǡ–Š‡–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹••ƒ‹†–‘„‡‹
—Œƒ”ƒ–Ǥ
Example 2:‘‡‰‘‘†•™‡”‡•—’’Ž‹‡†–‘ƒϐ‹•Š‹‰–”ƒ™Ž‡”Ž‘…ƒ–‡†‹–‡””‹–‘”‹ƒŽ™ƒ–‡”•‡ƒ”ƒƒǡƒ’ƒ”–‘ˆ‹‘
‡””‹–‘”›‘ˆ—†—…Š‡””›Ǥ‹…‡–Š‡‡ƒ”‡•–„ƒ•‡Ž‹‡‹•ƒ–ƒƒǡ’Žƒ…‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡‹‘‡””‹–‘”›‘ˆ
—†—…Š‡””›Ǥˆ–Š‡•—’’Ž‹‡”‹•Ž‘…ƒ–‡†‹—†—…Š‡””›ǡ‹–•ŠƒŽŽ„‡ƒ‹–”ƒǦ–ƒ–‡•—’’Ž›Ǥˆ–Š‡•—’’Ž‹‡”‹•Ž‘…ƒ–‡†‹
Š‡ƒ‹ǡ‹–‹•ƒ‹–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ
PLACE OF SUPPLY
• •—…Šǡ –Š‡ ‡š’”‡••‹‘ Ǯ’Žƒ…‡ ‘ˆ •—’’Ž›ǯ Šƒ• ‘– „‡‡ †‡ϐ‹‡† ‹ …–ǡ Š‘™‡˜‡”ǡ –Š‡ …‘ŽŽ‡…–‹˜‡ ”‡ƒ†‹‰ ‘ˆ ˜ƒ”‹‘—•
’”‘˜‹•‹‘ƒ‡•—•—†‡”•–ƒ†–Š‡’—”’‘•‡ƒ†”‡Ž‡˜ƒ…‡–Š‡”‡‘ˆ‹–Š‡
Žƒ™ǤŠ‡’”‹‡’—”’‘•‡‘ˆ’Žƒ…‡‘ˆ
•—’’Ž›‹•–‘†‡–‡”‹‡™Š‡–Š‡”ƒ•—’’Ž›‹•‹–”ƒǦ–ƒ–‡‘”‹–‡”Ǧ–ƒ–‡ƒ†…‘•‡“—‡–‹ƒŽŽ›–‘†‡–‡”‹‡™Š‡–Š‡”

–‘ „‡ …Šƒ”‰‡† ‘” 
Ϊ
 ‘” 
 –‘ „‡ …Šƒ”‰‡†Ǥ – ‹• ƒŽ•‘ ”‡Ž‡˜ƒ– ˆ‘” –Š‡ ƒ—–Š‘”‹–‹‡• –‘ †‡–‡”‹‡ ™Š‹…Š
–ƒ–‡Ȁ‹‘‡””‹–‘”›™‹ŽŽ‰‡––Š‡–ƒš”‡˜‡—‡Ǥ
Place of Supply of Goods other than supply of goods imported into, or exported from India
[Section 10 of IGST Act, 2017]
‡…–‹‘ͳͲ’”‡•…”‹„‡•–Š‡’”‘˜‹•‹‘•ˆ‘”†‡–‡”‹‹‰–Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‹†‘‡•–‹…–”ƒ•ƒ…–‹‘•ǤŠ‡ϐ‹˜‡
”—Ž‡•ǡ‡ƒ…Š…‘˜‡”‹‰ƒ—‹“—‡•…‡ƒ”‹‘ǡƒ”‡ƒ•—†‡”ǣ

Situation Place of Supply of Goods

 —’’Ž› ‹˜‘Ž˜‡• ‘˜‡‡– ‘ˆ ‰‘‘†• ™Š‡–Š‡” „› –Š‡ ‘…ƒ–‹‘‘ˆ–Š‡‰‘‘†•ƒ––Š‡–‹‡ƒ–™Š‹…Š
•—’’Ž‹‡” ‘” –Š‡”‡…‹’‹‡–‘”„›ƒ›‘–Š‡”’‡”•‘ǡ –Š‡ ‘˜‡‡– ‘ˆ ‰‘‘†• –‡”‹ƒ–‡• ˆ‘”
†‡Ž‹˜‡”›–‘–Š‡”‡…‹’‹‡–Ǥ
 WŠ‡”‡ –Š‡ ‰‘‘†• ƒ”‡ †‡Ž‹˜‡”‡† „› –Š‡ •—’’Ž‹‡” –‘ ƒ –Š‡ •ƒ‹† –Š‹”† ’‡”•‘ Šƒ• ”‡…‡‹˜‡† –Š‡
”‡…‹’‹‡– ‘” ƒ› ‘–Š‡” ’‡”•‘ ‘ –Š‡ †‹”‡…–‹‘ ‘ˆ ƒ ‰‘‘†• ƒ† –Š‡ ’Žƒ…‡ ‘ˆ •—’’Ž› ‘ˆ •—…Š
–Š‹”†’‡”•‘ǡ™Š‡–Š‡”ƒ…–‹‰ƒ•ƒ ƒ‰‡– ‘” ‘–Š‡”™‹•‡ǡ ‰‘‘†• •ŠƒŽŽ „‡ –Š‡ ’”‹…‹’ƒŽ ’Žƒ…‡ ‘ˆ
„‡ˆ‘”‡ ‘”†—”‹‰‘˜‡‡–‘ˆ‰‘‘†•ǡ‡‹–Š‡”„› ™ƒ› ‘ˆ „—•‹‡•• ‘ˆ–Š‹”†’ƒ”–›Ǥ
–”ƒ•ˆ‡” ‘ˆ †‘…—‡–•‘ˆ–‹–Ž‡–‘–Š‡‰‘‘†•‘”‘–Š‡”™‹•‡ǡ
‹– •ŠƒŽŽ„‡†‡‡‡†–Šƒ–ǡ
 Š‡”‡–Š‡•—’’Ž›†‘‡• ‘– ‹˜‘Ž˜‡ ‘˜‡‡–‘ˆ ‰‘‘†•ǡ Ž‘…ƒ–‹‘ ‘ˆ •—…Š ‰‘‘†• ƒ– –Š‡ –‹‡ ‘ˆ
™Š‡–Š‡” „› –Š‡•—’’Ž‹‡”‘”–Š‡”‡…‹’‹‡–ǡ †‡Ž‹˜‡”›–‘–Š‡”‡…‹’‹‡–Ǥ
 Š‡”‡ –Š‡ ‰‘‘†• ƒ”‡ ƒ••‡„Ž‡† ‘”‹•–ƒŽŽ‡†ƒ–•‹–‡ǡ ’Žƒ…‡‘ˆ•—…Šƒ••‡„Ž›‘”‹•–ƒŽŽƒ–‹‘Ǥ
 —’’Ž› ‘ „‘ƒ”† ƒ …‘˜‡›ƒ…‡ ‹…Ž—†‹‰ ƒ ˜‡••‡Žǡ ƒ Ž‘…ƒ–‹‘™Š‡”‡‰‘‘†•ƒ”‡–ƒ‡‘„‘ƒ”†Ǥ
ƒ‹”…”ƒˆ–ǡ ƒ –”ƒ‹‘”ƒ‘–‘”˜‡Š‹…Ž‡ǡ
Š‡”‡’Žƒ…‡‘ˆ•—’’Ž›…ƒ‘–„‡†‡–‡”‹‡†ǡ‹–‹•†‡–‡”‹‡†ƒ•’‡”—Ž‡•Ǥ
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 663

Illustration 1

”Ǥ‘ˆ—„ƒ‹•‡ŽŽ•”‡ˆ”‹‰‡”ƒ–‘”•–‘Ȁ•‘ˆŠ‡†ƒ„ƒ†Ǥ
Š‡ ’Žƒ…‡ ‘ˆ •—’’Ž› ™‘—Ž† „‡
—Œƒ”ƒ–Ǥ ‹…‡ –Š‡ Ž‘…ƒ–‹‘ ‘ˆ •—’’Ž‹‡” ȋƒŠƒ”ƒ•Š–”ƒȌ ƒ† –Š‡ ’Žƒ…‡ ‘ˆ •—’’Ž›
ȋ
—Œƒ”ƒ–Ȍƒ”‡‹†‹ˆˆ‡”‡–•–ƒ–‡•ǡ
™‘—Ž†„‡…Šƒ”‰‡†ǡ„‡‹‰‹–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ
Illustration 2
Šƒ˜‹‰”‡‰‹•–‡”‡†’Žƒ…‡‘ˆ„—•‹‡••ƒ–—‡ǡ’Žƒ…‡†ƒ‘”†‡”‘–†Ǥ‹‡™‡ŽŠ‹ǡˆ‘”†‡Ž‹˜‡”‹‰ƒ’ƒ”…‡Ž–‘
™Š‘™ƒ•ƒ–ƒ•‹Ǥ
–Š‹•…ƒ•‡ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒŠƒ”ƒ•Š–”ƒȏˆ‘”–”ƒ•ƒ…–‹‘„‡–™‡‡–†Ǥƒ†ȐǤ‹…‡–Š‡Ž‘…ƒ–‹‘
‘ˆ•—’’Ž‹‡”ȋ‡™‡ŽŠ‹Ȍƒ†’Žƒ…‡‘ˆ•—’’Ž›ȋƒŠƒ”ƒ•Š–”ƒȌƒ”‡†‹ˆˆ‡”‡–ǡ
™‘—Ž†„‡…Šƒ”‰‡†Ǥ
‘™‡˜‡”ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›ˆ‘”ƒ•‡…‘†Ž‡‰‘ˆ–Š‡–”ƒ•ƒ…–‹‘‹Ǥ‡Ǥ„‡–™‡‡ƒ†–†Ǥ™‘—Ž†„‡†‡–‡”‹‡†
—†‡”…‡ƒ”‹‘Ǯǯǡ™Š‹…Š•ŠƒŽŽ„‡ƒŠƒ”ƒ•Š–”ƒǡ…‘•‹†‡”‹‰–Šƒ––Š‡‘˜‡‡–‘ˆ‰‘‘†•–‡”‹ƒ–‡•ƒ–ƒ•‹Ǥ
‡”‡ǡ•‹…‡–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ȋ—‡ȀƒŠƒ”ƒ•Š–”ƒȌƒ†’Žƒ…‡‘ˆ•—’’Ž›ȋƒ•‹ȀƒŠƒ”ƒ•Š–”ƒȌƒ”‡‹–Š‡
•ƒ‡•–ƒ–‡ǡ
Ϊ
™‘—Ž†„‡…Šƒ”‰‡†Ǥ
Illustration 3

”‹‹˜ƒ•ƒˆ”‘ƒ‰ƒŽ‘”‡–”ƒ˜‡ŽŽ‡†–‘Š‡ƒ‹ˆ‘”ƒ˜ƒ…ƒ–‹‘ƒ†’—”…Šƒ•‡†ƒŽƒ’–‘’ˆ”‘”‘ƒƒ–Š‡ƒ‹Ǥ
–Š‹•…ƒ•‡ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒ‹Žƒ†—ƒ†•‹…‡–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ƒ†’Žƒ…‡‘ˆ•—’’Ž›ƒ”‡
•ƒ‡ǡ
Ϊ
™‘—Ž†„‡…Šƒ”‰‡†ǡ„‡‹‰ƒ‹–”ƒǦ–ƒ–‡•—’’Ž›Ǥ
Illustration 4

—”›ƒƒ”ƒ›ƒˆ”‘ ƒ•Š‡†’—”‘”†‡”‡†ƒƒ…Š‹‡–‘„‡‹•–ƒŽŽ‡†‹Š‹•ˆƒ…–‘”›ƒ– ƒ•Š‡†’—”ǤŠ‡•—’’Ž‹‡”ǡ

ˆ”‘‘Žƒ–ƒǡ•‘—”…‡†–Š‡’ƒ”–•ˆ”‘˜ƒ”‹‘—••–ƒ–‡•ƒ…”‘••–Š‡…‘—–”›ƒˆ–‡”™Š‹…Š–Š‡ƒ…Š‹‡™ƒ••—……‡••ˆ—ŽŽ›
‹•–ƒŽŽ‡†ƒ–Š‹•ˆƒ…–‘”›ƒ– ƒ•Š‡†’—”Ǥ
 –Š‹• …ƒ•‡ǡ –Š‡ ’Žƒ…‡ ‘ˆ •—’’Ž› ™‘—Ž† „‡ ƒ•Š‡†’—” ȋ Šƒ”Šƒ†ȌǤ ‹…‡ –Š‡ Ž‘…ƒ–‹‘ ‘ˆ –Š‡ •—’’Ž‹‡” ȋ‡•–
‡‰ƒŽȌƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›ȋ Šƒ”Šƒ†Ȍƒ”‡†‹ˆˆ‡”‡–ǡ
™‘—Ž†„‡…Šƒ”‰‡†Ǥ
Illustration 5
‘™”ƒŠȂ‡™‡ŽŠ‹ƒŒ†Šƒ‹š’”‡•••—’’Ž‹‡•ˆ‘‘†™Š‹…Š™ƒ•–ƒ‡‘„‘ƒ”†ƒ–—‰ƒŽ•ƒ”ƒ‹‹––ƒ””ƒ†‡•ŠǤ
Š‡ ’Žƒ…‡ ‘ˆ •—’’Ž› ‘ˆ ˆ‘‘† ˆ‘” ƒ –”ƒ•ƒ…–‹‘ „‡–™‡‡ –Š‡ •—’’Ž‹‡” ‘ˆ ˆ‘‘† ƒ† –Š‡ ”ƒ‹Ž™ƒ›• ™‘—Ž† „‡ ––ƒ”
”ƒ†‡•ŠǤ
‘™‡˜‡”ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆˆ‘‘†ˆ‘”ƒ–”ƒ•ƒ…–‹‘„‡–™‡‡”ƒ‹Ž™ƒ›•ƒ†–Š‡’ƒ••‡‰‡”•™‘—Ž†„‡†‡–‡”‹‡†
—†‡” ‡…–‹‘ ͳʹ ‘ˆ –Š‡ 
 …– ƒ• •—…Š •—’’Ž› ™‘—Ž† „‡ –”‡ƒ–‡† ƒ• ƒ…‹ŽŽƒ”› –‘ –Š‡ •—’’Ž› ‘ˆ ’ƒ••‡‰‡”
–”ƒ•’‘”–ƒ–‹‘•‡”˜‹…‡Ǥ

Place of supply in case of import into, export from India [Section 11 of IGST Act, 2017]
…ƒ•‡‘ˆ‹’‘”–‘ˆ‰‘‘†•ǡ’Žƒ…‡‘ˆ•—’’Ž›‹•Ž‘…ƒ–‹‘‘ˆ‹’‘”–‡”Ǥ
…ƒ•‡‘ˆ‡š’‘”–‘ˆ‰‘‘†•ǡ’Žƒ…‡‘ˆ•—’’Ž›‹•–Š‡Ž‘…ƒ–‹‘‘—–•‹†‡†‹ƒǤ

Place of supply of services [Section 12 & 13 of IGST Act, 2017]

Section 12: Š‡”‡„‘–Š‘…ƒ–‹‘‘ˆ—’’Ž‹‡”ƒ†‘…ƒ–‹‘‘ˆ‡…‹’‹‡–ƒ”‡Ž‘…ƒ–‡†‹†‹ƒ

Services Place of Supply

Recipient is Registered Recipient is Unregistered
Section 12(2):
‡‡”ƒŽ”‹…‹’Ž‡ Ž‘…ƒ–‹‘‘ˆ”‡…‹’‹‡– Ž‘…ƒ–‹‘ ‘ˆ ”‡…‹’‹‡– ‹ˆ ƒ††”‡•• ‘ ”‡…‘”†•
‡š‹•–•‘”Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ǡ‹‘–Š‡”…ƒ•‡•
664 Lesson 13 Ȉ EP-TL

Section 12(3):š…‡’–‹‘Ȁ’‡…‹ƒŽ…ƒ•‡•Ȃ Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡–Š‡Ž‘…ƒ–‹‘™Š‡”‡–Š‡‹‘˜ƒ„Ž‡’”‘’‡”–›

‘” „‘ƒ– ‘” ˜‡••‡Žǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ ‹• Ž‘…ƒ–‡† ‘” ‹–‡†‡† –‘ „‡
ȋƒȌ ‹”‡…–Ž› ‹ ”‡Žƒ–‹‘ –‘ ƒ ‹‘˜ƒ„Ž‡ Ž‘…ƒ–‡†ǣ
’”‘’‡”–›ǡ ‹…Ž—†‹‰ •‡”˜‹…‡• ’”‘˜‹†‡† „›
ƒ”…Š‹–‡…–•ǡ‹–‡”‹‘”†‡…‘”ƒ–‘”•ǡ•—”˜‡›‘”•ǡ ”‘˜‹†‡†–Šƒ–‹ˆ–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡‹‘˜ƒ„Ž‡’”‘’‡”–›‘”„‘ƒ–‘”
‡‰‹‡‡”• ƒ† ‘–Š‡” ”‡Žƒ–‡† ‡š’‡”–• ‘” ˜‡••‡Ž‹•Ž‘…ƒ–‡†‘”‹–‡†‡†–‘„‡Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒǡ–Š‡’Žƒ…‡‘ˆ
‡•–ƒ–‡ƒ‰‡–•ǡƒ›•‡”˜‹…‡’”‘˜‹†‡†„›™ƒ› •—’’Ž›•ŠƒŽŽ„‡–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡”‡…‹’‹‡–Ǥ
‘ˆ ‰”ƒ– ‘ˆ ”‹‰Š–• –‘ —•‡ ‹‘˜ƒ„Ž‡ ˆ–Š‡‹‘˜ƒ„Ž‡’”‘’‡”–›‘”„‘ƒ–‘”˜‡••‡Žǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹•
’”‘’‡”–› ‘” ˆ‘” …ƒ””›‹‰ ‘—– ‘” …‘Ǧ Ž‘…ƒ–‡†ƒ–‘”‡–Šƒ‘‡•–ƒ–‡‘”—‹‘–‡””‹–‘”›ǡ˜ƒŽ—‡•ŠƒŽŽ„‡–ƒ‡
‘”†‹ƒ–‹‘‘ˆ…‘•–”—…–‹‘™‘”Ǣ‘” ’”‘’‘”–‹‘ƒ–‡Ž› ƒ• ’‡” …‘–”ƒ…– ‘” ƒ‰”‡‡‡– ‡–‡”‡† ‹–‘ ‹ –Š‹•
ȋ„Ȍ ‘†‰‹‰ ƒ……‘‘†ƒ–‹‘ „› ƒ Š‘–‡Žǡ ”‡‰ƒ”†‘”‹–Š‡ƒ„•‡…‡‘ˆ•—…Š…‘–”ƒ…–‘”ƒ‰”‡‡‡–ǡƒ•’‡”—Ž‡•Ǥ
‹ǡ ‰—‡•– Š‘—•‡ǡ Š‘‡ •–ƒ›ǡ …Ž—„ ‘”
…ƒ’•‹–‡ǡ „› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†ǡ ƒ†
‹…Ž—†‹‰ƒŠ‘—•‡„‘ƒ–‘”ƒ›‘–Š‡”˜‡••‡ŽǢ
‘”
ȋ…Ȍ ……‘‘†ƒ–‹‘ ‹ ƒ› ‹‘˜ƒ„Ž‡
’”‘’‡”–› ˆ‘” ‘”‰ƒ‹•‹‰ ƒ› ƒ””‹ƒ‰‡ ‘”
”‡…‡’–‹‘ ‘” ƒ––‡”• ”‡Žƒ–‡† –Š‡”‡–‘ǡ
‘ˆϐ‹…‹ƒŽǡ •‘…‹ƒŽǡ …—Ž–—”ƒŽǡ ”‡Ž‹‰‹‘—• ‘”
„—•‹‡•• ˆ—…–‹‘ ‹…Ž—†‹‰ •‡”˜‹…‡•
’”‘˜‹†‡† ‹ ”‡Žƒ–‹‘ –‘ •—…Š ˆ—…–‹‘ ƒ–
•—…Š’”‘’‡”–›Ǣ‘”
ȋ†Ȍ…‹ŽŽƒ”›•‡”˜‹…‡•”‡ˆ‡””‡†–‘‹…Žƒ—•‡•
ȋƒȌǡȋ„Ȍƒ†ȋ…ȌǤ
Section 12(4) : ‡ƒ—–›–”‡ƒ–‡–ǡϐ‹–‡••ǡ Žƒ…‡‘ˆƒ…–—ƒŽ’‡”ˆ‘”ƒ…‡‘ˆ•‡”˜‹…‡
”‡•–ƒ—”ƒ–ƒ†…ƒ–‡”‹‰•‡”˜‹…‡•ǡ’‡”•‘ƒŽ
‰”‘‘‹‰ǡ Š‡ƒŽ–Š •‡”˜‹…‡ ‹…Ž—†‹‰
…‘•‡–‹…ƒ†’Žƒ•–‹…•—”‰‡”›Ǥ
Section 12(5) : ”ƒ‹‹‰ Ƭ ‡”ˆ‘”ƒ…‡ ‘…ƒ–‹‘‘ˆ”‡…‹’‹‡– ‘…ƒ–‹‘‘ˆƒ…–—ƒŽ’‡”ˆ‘”ƒ…‡
’’”ƒ‹•ƒŽǤ
Section 12(6) : †‹••‹‘ –‘ …—Ž–—”ƒŽǡ Žƒ…‡ ™Š‡”‡ –Š‡ ‡˜‡– ‹• ƒ…–—ƒŽŽ› Š‡Ž† ‘” ™Š‡”‡ –Š‡ ’ƒ” ‘” •—…Š
ƒ”–‹•–‹…ǡ •’‘”–‹‰ǡ •…‹‡–‹ϐ‹…ǡ ‡†—…ƒ–‹‘ƒŽǡ ‘–Š‡”’Žƒ…‡‹•Ž‘…ƒ–‡†
‡–‡”–ƒ‹‡–‡˜‡–ǡƒ—•‡‡–’ƒ”‘”
ƒ› ‘–Š‡” ’Žƒ…‡ ƒ† •‡”˜‹…‡• ƒ…‹ŽŽƒ”›
–Š‡”‡–‘Ǥ
Section 12(7) : ‘…ƒ–‹‘‘ˆ•—…Š Ȉ ‘…ƒ–‹‘™Š‡”‡–Š‡‡˜‡–‹•ƒ…–—ƒŽŽ›Š‡Ž†
’‡”•‘ Ȉ ‘…ƒ–‹‘ ‘ˆ ”‡…‹’‹‡– ‹ˆ –Š‡ ‡˜‡– ‹• Š‡Ž†
ȋƒȌ ”‰ƒ‹œƒ–‹‘ ‘ˆ ƒ …—Ž–—”ƒŽǡ ƒ”–‹•–‹…ǡ ‘—–•‹†‡†‹ƒ
•’‘”–‹‰ǡ •…‹‡–‹ϐ‹…ǡ ‡†—…ƒ–‹‘ƒŽ ‘”
‡–‡”–ƒ‹‡– ‡˜‡– ‹…Ž—†‹‰ •—’’Ž› ‘ˆ
•‡”˜‹…‡• ‹ ”‡Žƒ–‹‘ –‘ ƒ …‘ˆ‡”‡…‡ǡ ˆƒ‹”ǡ
‡šŠ‹„‹–‹‘ǡ…‡Ž‡„”ƒ–‹‘‘”•‹‹Žƒ”‡˜‡–•Ǣ‘”
ȋ„Ȍ…‹ŽŽƒ”›–‘‘”‰ƒ‹•ƒ–‹‘‘ˆƒ›‘ˆ–Š‡
‡˜‡–•‘”‡”˜‹…‡•”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌǡ
‘”ƒ••‹‰‹‰‘ˆ•’‘•‘”•Š‹’‘ˆ•—…Š‡˜‡–•Ǥ
ˆ –Š‡ ‡˜‡– ‹• Š‡Ž† ‹ ‘”‡ –Šƒ ‘‡ •–ƒ–‡ ‘” —‹‘ –‡””‹–‘”› ƒ†
ƒ …‘•‘Ž‹†ƒ–‡†ƒ‘—–‹•…Šƒ”‰‡†ˆ‘”•—’’Ž›‘ˆ•‡”˜‹…‡•”‡Žƒ–‹‰–‘
•—…Š ‡˜‡–ǡ’Žƒ…‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡†‡–‡”‹‡†ˆ‘””‡•’‡…–‹˜‡˜ƒŽ—‡
ƒ••‹‰‡† –‘‡ƒ…Š•–ƒ–‡‘”—‹‘–‡””‹–‘”›‘’”‘’‘”–‹‘ƒ–‡„ƒ•‹•Ǥ
Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 665

Services Status of Recipient

Registered Unregistered
Section 12(8) : ”ƒ•’‘”–‘ˆ‰‘‘†•ǡ ‹…Ž—†‹‰ ‘…ƒ–‹‘‘ˆ”‡…‹’‹‡– ‘…ƒ–‹‘™Š‡”‡‰‘‘†•ƒ”‡Šƒ†‡†‘˜‡”ˆ‘”
‘—”‹‡”Ȁƒ‹ŽǤ –”ƒ•’‘”–ƒ–‹‘Ǥ
™Š‡”‡–Š‡–”ƒ•’‘”–ƒ–‹‘‘ˆ‰‘‘†•‹•–‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒǡ–Š‡
’Žƒ…‡ ‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡’Žƒ…‡‘ˆ†‡•–‹ƒ–‹‘‘ˆ•—…Š‰‘‘†•
Section 12(9) : ”ƒ•’‘”–ƒ–‹‘‘ˆ’ƒ••‡‰‡”•Ǥ ‘…ƒ–‹‘‘ˆ”‡…‹’‹‡– Žƒ…‡™Š‡”‡–Š‡’ƒ••‡‰‡”‡„ƒ”•‘–Š‡
…‘˜‡›ƒ…‡ˆ‘”ƒ…‘–‹—‘—•Œ‘—”‡›Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡”‹‰Š––‘’ƒ••ƒ‰‡‹•
‰‹˜‡ ˆ‘” ˆ—–—”‡ —•‡ ƒ† –Š‡ ’‘‹– ‘ˆ
‡„ƒ”ƒ–‹‘ ‹• ‘– ‘™ ƒ– –Š‡ –‹‡ ‘ˆ
‹••—‡ ‘ˆ ”‹‰Š– –‘ ’ƒ••ƒ‰‡ǡ –Š‡ ’Žƒ…‡ ‘ˆ
•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•ŠƒŽŽ„‡†‡–‡”‹‡†
‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ
•‡…–‹‘ȋʹȌǤ
ExplanationȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ
•‡…–‹‘ǡ–Š‡”‡–—”Œ‘—”‡›•ŠƒŽŽ„‡–”‡ƒ–‡†
ƒ•ƒ•‡’ƒ”ƒ–‡Œ‘—”‡›ǡ‡˜‡‹ˆ–Š‡”‹‰Š––‘
’ƒ••ƒ‰‡ˆ‘”‘™ƒ”†ƒ†”‡–—”Œ‘—”‡›‹•
‹••—‡†ƒ––Š‡•ƒ‡–‹‡Ǥ

Section 12(10) :  „‘ƒ”† ƒ …‘˜‡›ƒ…‡ ‘…ƒ–‹‘ ‘ˆ ϐ‹”•–ǡ •…Š‡†—Ž‡† ’‘‹– ‘ˆ †‡’ƒ”–—”‡ ‘ˆ –Šƒ–
‹…Ž—†‹‰ ƒ ˜‡••‡Žǡ ƒ ƒ‹”…”ƒˆ–ǡ ƒ –”ƒ‹ ‘” ƒ …‘˜‡›ƒ…‡ ˆ‘”–Š‡Œ‘—”‡›Ǥ
‘–‘”˜‡Š‹…Ž‡Ǥ

Section 12(11) :‡Ž‡…‘—‹…ƒ–‹‘•‡”˜‹…‡•

‹…Ž—†‹‰ †ƒ–ƒ –”ƒ•ˆ‡”ǡ „”‘ƒ† …ƒ•–‹‰ǡ …ƒ„Ž‡
ƒ††‹”‡…––‘Š‘‡–‡Ž‡˜‹•‹‘•‡”˜‹…‡•–‘ƒ›
’‡”•‘•ŠƒŽŽǡǦ
ȋƒȌ ϐ‹š‡† –‡Ž‡…‘—‹…ƒ–‹‘ Ž‹‡ǡ Ž‡ƒ•‡† Žƒ…‡‘ˆ•—…Š‹•–ƒŽŽƒ–‹‘
…‹”…—‹–•ǡ ‹–‡”‡– Ž‡ƒ•‡† …‹”…—‹–ǡ …ƒ„Ž‡ ‘”
†‹•Šƒ–‡ƒǡ
ȋ„Ȍ‘„‹Ž‡…‘‡…–‹‘ˆ‘”–‡Ž‡…‘—‹…ƒ–‹‘ Ž‘…ƒ–‹‘‘ˆ„‹ŽŽ‹‰ƒ††”‡••‘ˆ”‡…‹’‹‡–‘ˆ•‡”˜‹…‡•‘–Š‡”‡…‘”†
ƒ† ‹–‡”‡– •‡”˜‹…‡• ’”‘˜‹†‡† ‘ ’‘•–Ǧ ‘ˆ–Š‡ •—’’Ž‹‡”‘ˆ•‡”˜‹…‡•Ǣ
’ƒ‹†„ƒ•‹•ǡ

ȋ…Ȍ‘„‹Ž‡…‘‡…–‹‘ˆ‘”–‡Ž‡…‘—‹…ƒ–‹‘ǡ
‹–‡”‡– •‡”˜‹…‡ ƒ† †‹”‡…– –‘ Š‘‡
–‡Ž‡˜‹•‹‘ •‡”˜‹…‡• ƒ”‡ ’”‘˜‹†‡† ‘ ’”‡Ǧ
’ƒ›‡–„ƒ•‹•–Š”‘—‰Šƒ˜‘—…Š‡”‘”ƒ›
‘–Š‡”‡ƒ•ǡ
††”‡•• ‘ˆ •‡ŽŽ‹‰ ƒ‰‡–ǡ ‘” ”‡Ǧ •‡ŽŽ‡” ‘” †‹•–”‹„—–‘” ƒ• ’‡” –Š‡
”‡…‘”†‘ˆ–Š‡•—’’Ž‹‡”ƒ––Š‡–‹‡‘ˆ•—’’Ž›Ǣ‘”
–Š‡Ž‘…ƒ–‹‘™Š‡”‡•—…Š’”‡Ǧ’ƒ›‡–‹•”‡…‡‹˜‡†‘”•—…Š˜‘—…Š‡”•
ƒ”‡•‘Ž†Ǣ

ȋ‹Ȍ –Š”‘—‰Šƒ•‡ŽŽ‹‰ƒ‰‡–‘”ƒ”‡Ǧ•‡ŽŽ‡”
‘”ƒ†‹•–”‹„—–‘”‘ˆ•—„•…”‹„‡”‹†‡–‹–›
‘†—Ž‡…ƒ”†‘””‡Ǧ…Šƒ”‰‡˜‘—…Š‡”ǡ
ȋ‹‹Ȍ „›ƒ›’‡”•‘–‘–Š‡ϐ‹ƒŽ•—„•…”‹„‡”ǡ
666 Lesson 13 Ȉ EP-TL

ȋ†Ȍ‘–Š‡”…ƒ•‡• ††”‡•• ‘ˆ ”‡…‹’‹‡– ƒ• ’‡” ”‡…‘”†•Ǥ ˆ ƒ††”‡•• ‹• ‘– ƒ˜ƒ‹Žƒ„Ž‡ǡ ’Žƒ…‡ ‘ˆ
•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•Ǥ

”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–ƒ•’‡”–Š‡”‡…‘”†•‘ˆ–Š‡
•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•‹•‘–ƒ˜ƒ‹Žƒ„Ž‡ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡Ž‘…ƒ–‹‘‘ˆ
–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•Ǥ

”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‹ˆ•—…Š’”‡Ǧ’ƒ‹†•‡”˜‹…‡‹•ƒ˜ƒ‹Ž‡†‘”–Š‡”‡…Šƒ”‰‡‹•
ƒ†‡–Š”‘—‰Š‹–‡”‡–„ƒ‹‰‘”‘–Š‡”‡Ž‡…–”‘‹…‘†‡‘ˆ’ƒ›‡–ǡ–Š‡
Ž‘…ƒ–‹‘‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•‡”˜‹…‡•‘–Š‡”‡…‘”†‘ˆ–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•
•ŠƒŽŽ„‡–Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•Ǥ
Explanation:Ǧ Š‡”‡ Ž‡ƒ•‡† …‹”…—‹– ‹• ‹•–ƒŽŽ‡† ‹ ‘”‡ –Šƒ ‘‡ •–ƒ–‡Ȁ—‹‘ –‡””‹–‘”› ƒ† ƒ …‘•‘Ž‹†ƒ–‡†
ƒ‘—– ‹• …Šƒ”‰‡† ˆ‘” •—’’Ž› ‘ˆ •‡”˜‹…‡• ”‡Žƒ–‹‰ –‘ •—…Š …‹”…—‹– ’Žƒ…‡ ‘ˆ •—’’Ž› •ŠƒŽŽ „‡ †‡–‡”‹‡† ˆ‘”
”‡•’‡…–‹˜‡˜ƒŽ—‡ƒ••‹‰‡†–‘‡ƒ…Š•–ƒ–‡‘”—‹‘–‡””‹–‘”›‘’”‘’‘”–‹‘ƒ–‡„ƒ•‹•ƒ•’‡”…‘–”ƒ…–Ǥ
Section 12(12) : ƒ‹‰ Ƭ ‘–Š‡” ‘…ƒ–‹‘ ‘ˆ ”‡…‹’‹‡– ‹ˆ ƒ††”‡•• ‡š‹•–• ‘ ”‡…‘”†• ‘ˆ •—’’Ž‹‡” ‘” ‡Ž•‡ǡ
‹ƒ…‹ƒŽ •‡”˜‹…‡• ‹…Ž—†‹‰ –‘… Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”Ǥ
„”‘‹‰•‡”˜‹…‡•–‘ƒ›’‡”•‘
Section 12(13) : •—”ƒ…‡•‡”˜‹…‡• ‘…ƒ–‹‘‘ˆ”‡…‹’‹‡– ‘…ƒ–‹‘ ‘ˆ ”‡…‹’‹‡– ‘ˆ •‡”˜‹…‡• ƒ• ‘ –Š‡
”‡…‘”†•‘ˆ–Š‡•—’’Ž‹‡”Ǥ
Section 12(14) : ƒ†˜‡”–‹•‡‡– Žƒ…‡ ‘ˆ •—’’Ž› •ŠƒŽŽ „‡ –ƒ‡ ƒ• „‡‹‰ ‹ ‡ƒ…Š ‘ˆ •—…Š–ƒ–‡• ‘” ‹‘
•‡”˜‹…‡•–‘–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ –‡””‹–‘”‹‡•ƒ†–Š‡˜ƒŽ—‡‘ˆ•—…Š•—’’Ž‹‡••’‡…‹ϐ‹…–‘‡ƒ…Š–ƒ–‡‘”‹‘
ƒ –ƒ–‡
‘˜‡”‡–ǡ ƒ •–ƒ–—–‘”› –‡””‹–‘”› •ŠƒŽŽ „‡ ‹ ’”‘’‘”–‹‘ –‘ –Š‡ ƒ‘—– ƒ––”‹„—–ƒ„Ž‡ –‘ •‡”˜‹…‡•
„‘†›‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›‡ƒ–ˆ‘” ’”‘˜‹†‡† „› ™ƒ› ‘ˆ †‹••‡‹ƒ–‹‘ ‹ –Š‡ ”‡•’‡…–‹˜‡ –ƒ–‡• ‘” ‹‘
–Š‡ –ƒ–‡• ‘” ‹‘ –‡””‹–‘”‹‡• –‡””‹–‘”‹‡• ƒ• ƒ› „‡ †‡–‡”‹‡† ‹ –‡”• ‘ˆ –Š‡ …‘–”ƒ…– ‘” ƒ‰”‡‡‡–
‹†‡–‹ϐ‹‡† ‹ –Š‡ …‘–”ƒ…– ‘” ‡–‡”‡†‹–‘‹–Š‹•”‡‰ƒ”†‘”ǡ‹–Š‡ƒ„•‡…‡‘ˆ•—…Š…‘–”ƒ…–‘”ƒ‰”‡‡‡–ǡ
ƒ‰”‡‡‡–•ŠƒŽŽ„‡ ‘•—…Š‘–Š‡”„ƒ•‹•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ

Illustrations
ͳǤ ”Ǥ‹•ƒ‘’ƒ›‡…”‡–ƒ”›”‡‰‹•–‡”‡†ƒ–—„ƒ‹ƒ†–”ƒ˜‡Ž•–‘ƒ‰ƒŽ‘”‡ˆ‘”„—•‹‡••’—”’‘•‡ƒ†
•–ƒ›•ƒ–ƒŠ‘–‡Ž–Š‡”‡Ǥ
 –Š‹•…ƒ•‡ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒ‰ƒŽ‘”‡Ȁƒ”ƒ–ƒƒ‹Ǥ‡Ǥ’Žƒ…‡‘ˆ‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ
ʹǤ  ‘•—Ž–ƒ–• ȋ”‡‰‹•–‡”‡† ƒ– ƒ‰ƒŽ‘”‡Ȍ ’”‘˜‹†‡• –”ƒ‹‹‰ –‘ ‹–• …Ž‹‡–ǯ• ‡’Ž‘›‡‡• ƒ– —„ƒ‹Ǥ Š‡
…Ž‹‡–•ƒ”‡”‡‰‹•–‡”‡†ƒ–Š‡ƒ‹Ǥ
 –Š‹•…ƒ•‡ǡ‹ˆ–Š‡…Ž‹‡–ȋ”‡…‹’‹‡–Ȍ‹•”‡‰‹•–‡”‡†ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡–Š‡Ž‘…ƒ–‹‘‘ˆ”‡…‹’‹‡–ǡ
–Šƒ–‹•Š‡ƒ‹ȋƒ‹Žƒ†—Ȍƒ†…‘•‡“—‡–Ž›
™‘—Ž†„‡…Šƒ”‰‡†ƒ•–Š‡Ž‘…ƒ–‹‘‘ˆ—’’Ž‹‡”ȋ–ƒ–‡
‘ˆ ƒ”ƒ–ƒƒȌ ƒ† –Š‡ Žƒ…‡ ‘ˆ —’’Ž› ȋ–ƒ–‡ ‘ˆ ƒ‹Ž ƒ†—Ȍ ƒ”‡ †‹ˆˆ‡”‡–Ǥ ȋ”ƒ‹‹‰ Ƭ ‡”ˆ‘”ƒ…‡
’’”ƒ‹•ƒŽ‡”˜‹…‡•Ȍ
͵Ǥ  –Š‡ ƒ„‘˜‡ ‡šƒ’Ž‡ǡ ‹ˆ –Š‡ …Ž‹‡– ™ƒ• —”‡‰‹•–‡”‡†ǡ –Š‡ ’Žƒ…‡ ‘ˆ •—’’Ž› ™‘—Ž† Šƒ˜‡ „‡‡ —„ƒ‹Ȁ
ƒŠƒ”ƒ•Š–”ƒƒ†ƒ‰ƒ‹
™‘—Ž†„‡…Šƒ”‰‡†Ǥȋ”ƒ‹‹‰Ƭ‡”ˆ‘”ƒ…‡’’”ƒ‹•ƒŽ‡”˜‹…‡•Ȍ
ͶǤ ƒ†Šƒ‹•ƒ”‡•‹†‡–‘ˆ—„ƒ‹ƒ†–”ƒ˜‡ŽŽ‡†–‘ƒ‰ƒŽ‘”‡ˆ‘”ƒ˜ƒ…ƒ–‹‘ƒ†„‘‘‡†–‹…‡–•ˆ‘”ƒ‡˜‡–
ƒ––Š‡™ƒ–‡”’ƒ”Ǥ
 –Š‹•…ƒ•‡ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒ‰ƒŽ‘”‡Ȁƒ”ƒ–ƒƒȋ†‹••‹‘–‘‡˜‡–•ȌǤ
ͷǤ ”Ǥ„ƒ•‡†‹Š‡†ƒ„ƒ†ǡ•‘Ž‹…‹–•–Š‡•‡”˜‹…‡•‘ˆƒ‡˜‡–ƒƒ‰‡‡–…‘’ƒ›„ƒ•‡†‹‡™‡ŽŠ‹ǡ
ˆ‘”Š‹•†ƒ—‰Š–‡”ǯ•ƒ””‹ƒ‰‡ǤŠ‡›’Žƒˆ‘”ƒ†‡•–‹ƒ–‹‘™‡††‹‰ƒ–ƒ’ƒŽƒ…‡‹†ƒ‹’—”Ǥ
 –Š‹•…ƒ•‡ǡ‹ˆ”Ǥ‹•”‡‰‹•–‡”‡†ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡Š‡†ƒ„ƒ†ȋ
—Œƒ”ƒ–Ȍƒ†
™‘—Ž†„‡
…Šƒ”‰‡†ǡ„—–‹ˆŠ‡‹•—”‡‰‹•–‡”‡†–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡†ƒ‹’—”ȋƒŒƒ•–ŠƒȌƒ†
™‘—Ž†„‡
…Šƒ”‰‡†Ǥ
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 667

͸Ǥ ƒ‰‡†”ƒ—ƒ”‹•”‡Ž‘…ƒ–‹‰ˆ”‘ƒ‰ƒŽ‘”‡–‘Š‡ƒ‹ƒ†…ƒŽŽ•ˆ‘”’ƒ…‡”•ƒ†‘˜‡”•ˆ‘”’ƒ…‹‰
ƒ†”‡Ž‘…ƒ–‹‘ƒ†•Š‹’’‹‰‘ˆŠ‘—•‡Š‘Ž†‡ˆˆ‡…–•Ǥ
 –Š‹•…ƒ•‡–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒ‰ƒŽ‘”‡ȋ–”ƒ•’‘”–ƒ–‹‘•‡”˜‹…‡•ȌǤ••—‹‰–Š‡’ƒ…‡”•ƒ”‡
ƒŽ•‘ˆ”‘ƒ‰ƒŽ‘”‡ǡ
Ϊ
™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡Ǥ
͹Ǥ ƒ”—„‘‘•ƒ”‘—†–”‹’ˆ‘”ȂȂȂȂǡ™‹–Šƒ•–‘’‘˜‡”ƒ–ƒ‰ƒŽ‘”‡ǤŠ‡–‹…‡–•
ƒ”‡„‘‘‡†™‹–Šƒƒ‰ƒŽ‘”‡„ƒ•‡†ƒ‹”Ž‹‡Ǥ
 –Š‹•…ƒ•‡ǡ–Š‹•™‘—Ž†„‡–”‡ƒ–‡†ƒ•ƒ…‘–‹—‘—•Œ‘—”‡›™‹–Šƒ•–‘’‘˜‡”Ǥ ‘”–Š‡ϐ‹”•–Ž‡‰ǡ–Š‡’Žƒ…‡‘ˆ
•—’’Ž›™‘—Ž†„‡Š‡†ƒ„ƒ†ƒ†•‹…‡–Š‡‘…ƒ–‹‘‘ˆ—’’Ž‹‡”ȋȌƒ†–Š‡Žƒ…‡‘ˆ—’’Ž›ȋȌƒ”‡
†‹ˆˆ‡”‡–ǡ
™‘—Ž†„‡…Šƒ”‰‡†Ǥ ‘”–Š‡•‡…‘†Ž‡‰‘ˆ–Š‡Œ‘—”‡›ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒ‰ƒŽ‘”‡ǡ
ƒ†•‹…‡–Š‡‘…ƒ–‹‘‘ˆ—’’Ž‹‡”ȋȌƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›ƒ”‡•ƒ‡ǡ
Ϊ
™‘—Ž†„‡…Šƒ”‰‡†Ǥ
ȋƒ••‡‰‡””ƒ•’‘”–ƒ–‹‘‡”˜‹…‡•ȌǤ
ͺǤ ‹Š‹Žǡˆ”‘‘Žƒ–ƒǡ‰‡–•ƒŒ‘„ƒ–—„ƒ‹ƒ†Š‡‰‡–•ƒŽƒ†Ž‹‡…‘‡…–‹‘†‘‡ƒ–—„ƒ‹Ǥ
 –Š‹•…ƒ•‡ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡—„ƒ‹ǤˆŠ‡™‘—Ž†Šƒ˜‡–ƒ‡ƒ’‘•–Ǧ’ƒ‹†…‘‡…–‹‘ǡƒ†
’”‘˜‹†‡†–Š‡‹ŽŽ‹‰††”‡••‘ˆ‘Žƒ–ƒǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†Šƒ˜‡„‡‡‘Žƒ–ƒǤ
ͻǤ ”‹›ƒǡ ƒ —”‡‰‹•–‡”‡† ’‡”•‘ǡ ˆ”‘ ‡™ ‡ŽŠ‹ǡ Šƒ• ƒ ƒ……‘—– ™‹–Š ƒ ƒ ƒ– ‡™ ‡ŽŠ‹Ǥ Š‡ ‹• ‘ ƒ
˜ƒ…ƒ–‹‘‹ƒ‹‹–ƒŽǡƒ†˜‹•‹–•ƒ„ƒˆ‘”‰‡––‹‰ƒ‡ƒ†”ƒˆ–ƒ†‡Ǥ
 –Š‹•…ƒ•‡ǡ•‹…‡–Š‡ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡”‡…‘”†•‘ˆ–Š‡•—’’Ž‹‡”ǡ–Š‡’Žƒ…‡‘ˆ
•—’’Ž›™‘—Ž†„‡‡™‡ŽŠ‹Ǥ
 …ƒ•‡•Š‡™‡––‘ƒ„”ƒ…Šƒ–ƒ‹‹–ƒŽˆ‘”ƒ˜ƒ‹Ž‹‰…—””‡…›‡š…Šƒ‰‡•‡”˜‹…‡•™Š‹…Š‹•ǯ–Ž‹‡†–‘Š‡”
ƒ……‘—–‹‡™‡ŽŠ‹ǡ–Š‡ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–™‘—Ž†‘–„‡ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡”‡…‘”†•‘ˆ–Š‡•—’’Ž‹‡”ǡ
ƒ†Š‡…‡–Š‡’Žƒ…‡‘ˆ•—’’Ž›™‘—Ž†„‡ƒ‹‹–ƒŽǤ

Section 13 – Where location of supplier or location of recipient is outside India

Section 13(2) General scenario [where the situation does not fall in any of the cases spelt in Section 13(3)
to Section 13(12) - ‘…ƒ–‹‘‘ˆ”‡…‹’‹‡–Ǥ‘™‡˜‡”ǡ’Žƒ…‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ǡ‹ˆŽ‘…ƒ–‹‘‘ˆ
”‡…‹’‹‡–‹•‘–ƒ˜ƒ‹Žƒ„Ž‡Ǥ
Section 13(3)
Ȉ Š‡”‡ǡ•‡”˜‹…‡‹•‹”‡Žƒ–‹‘–‘‰‘‘†•”‡“—‹”‡†–‘„‡ƒ†‡’Š›•‹…ƒŽŽ›ƒ˜ƒ‹Žƒ„Ž‡by the recipient of services –‘
–Š‡ •—’’Ž‹‡” ‘ˆ •‡”˜‹…‡• , or to a person acting on behalf of the supplier of services in order to provide the
services: Ǧ‘…ƒ–‹‘‘ˆƒ…–—ƒŽ’‡”ˆ‘”ƒ…‡Ǥ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡•—…Š•‡”˜‹…‡•ƒ”‡’”‘˜‹†‡†ˆ”‘ƒ”‡‘–‡Ž‘…ƒ–‹‘„›™ƒ›‘ˆ‡Ž‡…–”‘‹…‡ƒ•ǡ–Š‡’Žƒ…‡
‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡Ž‘…ƒ–‹‘™Š‡”‡‰‘‘†•ƒ”‡•‹–—ƒ–‡†ƒ––Š‡–‹‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•Ǥ
Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of
goods which are temporarily imported into India for repairs or for any other treatment or process and are
exported after such repairs or treatment or process without being put to any use in India, other than that which
is required for such repairs or treatment or process.
Ȉ Š‡”‡ǡ•‡”˜‹…‡‹•‹”‡Žƒ–‹‘–‘ƒ‹†‹˜‹†—ƒŽ, represented either as the recipient of services or a person acting
on behalf of the recipient, ™Š‹…Š”‡“—‹”‡•’Š›•‹…ƒŽ’”‡•‡…‡‘ˆthe recipient or the person acting on his behalf,
with the supplier for the supply of services.
Section 13(4) Services in relation to Immovable Property, including services supplied in this regard by experts
and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called,
grant of rights to use immovable property, services for carrying out or co- ordination of construction work, including
that of architects or interior decorators: Location of such property.
Section 13(5) Admission to/organization of ƒ…—Ž–—”ƒŽǡƒ”–‹•–‹…ǡ•’‘”–‹‰ǡ•…‹‡–‹ϔ‹…ǡ‡†—…ƒ–‹‘ƒŽ‘”‡–‡”–ƒ‹‡–
event, or a celebration, conference, fair, exhibition or similar events, and of services ancillary to such admission or
organisation: Location where event is actually held.
 668 Lesson 13 Ȉ EP-TL

Section 13(6)‡”˜‹…‡•…‘˜‡”‡†—†‡”‡…–‹‘ͳ͵ȋ͵Ȍǡ‡…–‹‘ͳ͵ȋͶȌƒ†‡…–‹‘ͳ͵ȋͷȌ’”‘˜‹†‡†ƒ–—Ž–‹’Ž‡Ž‘…ƒ–‹‘•
ƒ†‘‡‘”‘”‡Ž‘…ƒ–‹‘ˆƒŽŽ•‹–ƒšƒ„Ž‡–‡””‹–‘”›ǣLocation in the taxable territory.
Section 13(7) Multi locations involving more than one State/UT: Proportional to value for services separately
collected or determined in terms of the contract or agreement entered into in this regard in each State/UT or, in the
absence of such contract or agreement, on such other basis as may be prescribed.
Section 13(8)ƒ‹‰…‘’ƒ›ǡ‘”ƒϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ‘”ƒ‘Ǧ„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›–‘ƒ……‘—–Š‘Ž†‡”•ǡ
‹–‡”‡†‹ƒ”›•‡”˜‹…‡•ƒ†Š‹”‹‰‘ˆ‡ƒ•‘ˆ–”ƒ•’‘”–‹…Ž—†‹‰›ƒ–…Š•„—–‡š…Ž—†‹‰ƒ‹”…”ƒˆ–‘”˜‡••‡Ž, up to a
period of one month. ǦLocation of supplier.
Section 13(9) Goods transport other than mail/courier: ‡•–‹ƒ–‹‘‘ˆ
‘‘†•Ǥ
Section 13(10) Passenger transport services: ‘…ƒ–‹‘™Š‡”‡–Š‡’ƒ••‡‰‡”‡„ƒ”•‘–Š‡…‘˜‡›ƒ…‡ˆ‘”ƒ
…‘–‹—‘—•Œ‘—”‡›Ǥ
Section 13(11) Services on board a conveyance during the course of a passenger transport operation, including
services intended to be wholly or substantially consumed while on board,: ‹”•–•…Š‡†—Ž‡†’‘‹–‘ˆ†‡’ƒ”–—”‡‘ˆ–Šƒ–
…‘˜‡›ƒ…‡ˆ‘”–Š‡Œ‘—”‡›Ǥ
Section 13 (12) on line information and database excess or retrieval services shall be the : ‘…ƒ–‹‘ ‘ˆ
”‡…‹’‹‡–‘ˆ•‡”˜‹…‡•Ǥ
…ƒ•‡‘ˆƒ†˜‡”–‹•‡‡–•‘˜‡”‹–‡”‡–ǡ–Š‡ƒ†˜‡”–‹•‡‡–•‡”˜‹…‡•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡’”‘˜‹†‡†ƒŽŽ‘˜‡”
†‹ƒǤ Š—•ǡ –Š‡ ˜ƒŽ—‡ ‘ˆ •—…Š •‡”˜‹…‡ ™‹ŽŽ „‡ ƒ’’‘”–‹‘‡† ƒ‘‰•– ƒŽŽ –ƒ–‡• ƒ† •ǡ ‘ˆ †‹ƒǤ Š‡ ƒ‘—–
ƒ––”‹„—–ƒ„Ž‡–‘–Š‡˜ƒŽ—‡‘ˆƒ†˜‡”–‹•‡‡–•‡”˜‹…‡†‹••‡‹ƒ–‡†‹ƒ–ƒ–‡Ȁ•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†‘–Š‡„ƒ•‹•‘ˆ–Š‡
‹–‡”‡–•—„•…”‹„‡”•‹•—…Š–ƒ–‡ȀǤ
Section 13(13) :‘”†‡”–‘’”‡˜‡–†‘—„Ž‡–ƒšƒ–‹‘‘”‘Ǧ–ƒšƒ–‹‘‘ˆ–Š‡•—’’Ž›‘ˆƒ•‡”˜‹…‡‘”ˆ‘”–Š‡—‹ˆ‘”
ƒ’’Ž‹…ƒ–‹‘‘ˆ”—Ž‡•–Š‡
‘˜‡”‡–•ŠƒŽŽŠƒ˜‡–Š‡’‘™‡”–‘‘–‹ˆ›ƒ›†‡•…”‹’–‹‘‘ˆ•‡”˜‹…‡‘”…‹”…—•–ƒ…‡‹
™Š‹…Š–Š‡’Žƒ…‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡’Žƒ…‡‘ˆ‡ˆˆ‡…–‹˜‡—•‡ƒ†‡Œ‘›‡–‘ˆƒ•‡”˜‹…‡Ǥ
1. Research and Development services related to pharmaceutical sector:

Nature of
S.No. General Description of Supply Place of Supply
Supply
ͳǤ –‡‰”ƒ–‡† Š‹• ’”‘…‡•• ‹˜‘Ž˜‡• †‹•…‘˜‡”› ƒ† Š‡ ”‡•‡ƒ”…Š ƒ† †‡˜‡Ž‘’‡–
†‹•…‘˜‡”›ƒ† †‡˜‡Ž‘’‡–‘ˆ‘Ž‡…—Ž‡•„›’Šƒ”ƒ…‡—–‹…ƒŽ •‡”˜‹…‡•”‡Žƒ–‡†–‘’Šƒ”ƒ…‡—–‹…ƒŽ•‡…–‘”
†‡˜‡Ž‘’‡– •‡…–‘” ˆ‘” ‡†‹…‹ƒŽ —•‡Ǥ Š‡ •–‡’• ‹…Ž—†‡ ƒ••’‡…‹ϐ‹‡†‹‘Ž—ȋʹȌƒ†ȋ͵Ȍˆ”‘
ʹǤ –‡‰”ƒ–‡† †‡•‹‰‹‰ ‘ˆ …‘’‘—†ǡ ‡˜ƒŽ—ƒ–‹‘ ‘ˆ –Š‡ ŽǤ‘Ǥͳ–‘ͳͲ‹–Š‡ƒ„Ž‡„›ƒ’‡”•‘
†‡˜‡Ž‘’‡– †”—‰ ‡–ƒ„‘Ž‹•ǡ „‹‘Ž‘‰‹…ƒŽ ƒ…–‹˜‹–›ǡ Ž‘…ƒ–‡† ‹ –ƒšƒ„Ž‡ –‡””‹–‘”› –‘ ƒ ’‡”•‘
ƒ—ˆƒ…–—”‡ ‘ˆ –ƒ”‰‡– …‘’‘—†•ǡ •–ƒ„‹Ž‹–› Ž‘…ƒ–‡†‹–Š‡‘Ǧ–ƒšƒ„Ž‡–‡””‹–‘”›ǤŠ‡
•–—†›ƒ†Ž‘‰Ǧ–‡”–‘š‹…‘Ž‘‰›‹’ƒ…–Ǥ ’Žƒ…‡ ‘ˆ •—’’› •ŠƒŽŽ „‡ –Š‡ Ž‘…ƒ–‹‘ ‘ˆ
”‡…‹’‹‡– ‘ˆ •‡”˜‹…‡• •—„Œ‡…– –‘ –Š‡
ˆ—Žϐ‹ŽŽ‡–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
͵Ǥ ˜ƒŽ—ƒ–‹‘‘ˆ Š‹• ‹• ‹ ˜‹˜‘ ”‡•‡ƒ”…Š ȋ‹Ǥ‡Ǥ ™‹–Š‹ –Š‡ ȋ‹Ȍ —’’Ž› ‘ˆ •‡”˜‹…‡• ˆ”‘ –Š‡ –ƒšƒ„Ž‡
–Š‡‡ˆϐ‹…ƒ…›‘ˆ ƒ‹ƒŽȌ ƒ† ‹˜‘Ž˜‡• †‡˜‡Ž‘’‡– ‘ˆ –‡””‹–‘”› ƒ”‡ ’”‘˜‹†‡† ƒ• ’‡” ƒ …‘–”ƒ…–
‡™…Š‡‹…ƒŽȀ …—•–‘‹œ‡† ƒ‹ƒŽ ‘†‡Ž †‹•‡ƒ•‡• ƒ† „‡–™‡‡ –Š‡ •‡”˜‹…‡ ’”‘˜‹†‡” Ž‘…ƒ–‡† ‹
„‹‘Ž‘‰‹…ƒŽ ƒ†‹‹•–”ƒ–‹‘‘ˆ‘˜‡Ž…Š‡‹…ƒŽ‹†‘•‡•–‘ –ƒšƒ„Ž‡ –‡””‹–‘”› ƒ† •‡”˜‹…‡ ”‡…‹’‹‡–
‡–‹–‹‡•‹ ƒ‹ƒŽ• –‘ ‡˜ƒŽ—ƒ–‡ –Š‡ ‰‡‡ ƒ† ’”‘–‡‹ Ž‘…ƒ–‡†‹‘Ǧ–ƒšƒ„Ž‡–‡””‹–‘”›Ǥ
ƒ‹ƒŽ‘†‡Ž• ‡š’”‡••‹‘ ‹ ”‡•’‘•‡ –‘ †‹•‡ƒ•‡Ǥ 
‘ˆ†‹•‡ƒ•‡ —–•Š‡ŽŽǡ –Š‹• ’”‘…‡•• –”‹‡• –‘ †‹•…‘˜‡” ‹ˆ ƒ
‘˜‡Ž …Š‡‹…ƒŽ ‡–‹–› –Šƒ– …ƒ ”‡†—…‡ ‘”
‘†‹ˆ› –Š‡ •‡˜‡”‹–› ‘ˆ †‹•‡ƒ•‡•Ǥ Š‡ ‘˜‡Ž
…Š‡‹…ƒŽ‹••—’’Ž‹‡†„›–Š‡•‡”˜‹…‡”‡…‹’‹‡–
Ž‘…ƒ–‡†‹‘Ǧ–ƒšƒ„Ž‡–‡””‹–‘”›Ǥ
Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 669

ͶǤ ˜ƒŽ—ƒ–‹‘‘ˆ Š‹•‹•‹˜‹–”‘”‡•‡ƒ”…Šȋ‹Ǥ‡Ǥ‘—–•‹†‡–Š‡ƒ‹ƒŽȌǤ
ȋ‹‹Ȍ —…Š •—’’Ž› ‘ˆ •‡”˜‹…‡•
„‹‘Ž‘‰‹…ƒŽƒ…–‹˜‹–›‘ˆ  ƒ••ƒ› ‹• ϐ‹”•– †‡˜‡Ž‘’‡† ƒ† –Š‡ –Š‡ ‘˜‡Ž
ˆ—Žϐ‹ŽŽ• ƒŽŽ ‘–Š‡” …‘†‹–‹‘• ‹
‘˜‡Ž…Š‡‹…ƒŽȀ …Š‡‹…ƒŽ ‹• •—’’Ž‹‡† „› –Š‡ •‡”˜‹…‡ ”‡…‹’‹‡–
–Š‡ †‡ϐ‹‹–‹‘ ‘ˆ ‡š’‘”– ‘ˆ
„‹‘Ž‘‰‹…ƒŽ‡–‹–‹‡•‹ Ž‘…ƒ–‡†‹‘Ǧ–ƒšƒ„Ž‡–‡””‹–‘”›ƒ†‹•‡˜ƒŽ—ƒ–‡†‹
•‡”˜‹…‡•ǡ ‡š…‡’– •—„Ǧ …Žƒ—•‡
‹Ǧ˜‹–”‘ƒ••ƒ›• –Š‡ƒ••ƒ›—†‡”‘’–‹‹œ‡†…‘†‹–‹‘•Ǥ ȋ‹‹‹Ȍ ’”‘˜‹†‡† ƒ– …Žƒ—•‡ ȋ͸Ȍ ‘ˆ
ͷǤ ”—‰‡–ƒ„‘Ž‹• Š‹•’”‘…‡••‹˜‘Ž˜‡•‹˜‡•–‹‰ƒ–‹‘™Š‡–Š‡”ƒ‡™ ‡…–‹‘ʹ‘ˆ–‡‰”ƒ–‡†
‘‘†•
ƒ† …‘’‘—† •›–Š‡•‹œ‡† „› •—’’Ž‹‡” …ƒ „‡ ƒ† ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹
’Šƒ”ƒ…‘‹‡–‹…•‘ˆ †‡˜‡Ž‘’‡†ƒ•‡™†”—‰–‘–”‡ƒ–Š—ƒ†‹•‡ƒ•‡•‹ ȋͳ͵‘ˆʹͲͳ͹ȌǤ
‡™…Š‡‹…ƒŽ ”‡•’‡…– ‘ˆ •‘Ž—„‹Ž‹–›ǡ •–ƒ„‹Ž‹–› ‹ „‘†› ϐŽ—‹†•ǡ
‡–‹–‹‡• •–ƒ„‹Ž‹–›‹Ž‹˜‡”–‹••—‡ƒ†‹–•–‘š‹…‡ˆˆ‡…–‘„‘†›
–‹••—‡•Ǥ”‘‹•‹‰…‘’‘—†•ƒ”‡ˆ—”–Š‡”‡˜ƒŽ—ƒ–‡†
‹ƒ‹ƒŽ‡š’‡”‹‡–•—•‹‰”ƒ–ƒ†‹…‡Ǥ
͸Ǥ ƒˆ‡–›••‡••‡–Ȁ ƒˆ‡–› ƒ••‡••‡– ‹˜‘Ž˜‡• ‡˜ƒŽ—ƒ–‹‘ ‘ˆ ‡™
‘š‹…‘Ž‘‰› …Š‡‹…ƒŽ ‡–‹–‹‡• ‹ Žƒ„‘”ƒ–‘”› ”‡•‡ƒ”…Š ƒ‹ƒŽ
‘†‡Ž• –‘ •—’’‘”– ϐ‹Ž‹‰ ‘ˆ ‹˜‡•–‹‰ƒ–‹‘ƒŽ ‡™
†”—‰ ƒ† ‡™ †”—‰ ƒ’’Ž‹…ƒ–‹‘Ǥ ‘š‹…‘Ž‘‰› –‡ƒ
ƒƒŽ›•‡•–Š‡’‘–‡–‹ƒŽ–‘š‹…‹–›‘ˆƒ†”—‰–‘‡ƒ„Ž‡
ˆƒ•–ƒ†‡ˆˆ‡…–‹˜‡†”—‰†‡˜‡Ž‘’‡–Ǥ
͹Ǥ –ƒ„‹Ž‹–›–—†‹‡• –ƒ„‹Ž‹–› •–—†‹‡• ƒ”‡ …‘†—…–‡† –‘ •—’’‘”–
ˆ‘”—Žƒ–‹‘ǡ†‡˜‡Ž‘’‡–ǡ•ƒˆ‡–›ƒ†‡ˆϐ‹…ƒ…›‘ˆƒ
‡™†”—‰Ǥ–‹•ƒŽ•‘†‘‡–‘ƒ•…‡”–ƒ‹–Š‡“—ƒŽ‹–›ƒ†
•Š‡Žˆ Ž‹ˆ‡ ‘ˆ –Š‡ †”—‰ ‹ –Š‡‹” ‹–‡†‡† ’ƒ…ƒ‰‹‰
…‘ϐ‹‰—”ƒ–‹‘Ǥ
ͺǤ ‹‘Ǧ‡“—‹˜ƒŽ‡…‡ƒ† ‹‘Ǧ‡“—‹˜ƒŽ‡…‡ ‹• ƒ –‡” ‹ ’Šƒ”ƒ…‘‹‡–‹…•
‹‘Ǧƒ˜ƒ‹Žƒ„‹Ž‹–› —•‡† –‘ ƒ••‡•• –Š‡ ‡š’‡…–‡† ‹ ˜‹˜‘ „‹‘Ž‘‰‹…ƒŽ
–—†‹‡• ‡“—‹˜ƒŽ‡…‡ ‘ˆ –™‘ ’”‘’”‹‡–ƒ”› ’”‡’ƒ”ƒ–‹‘• ‘ˆ ƒ
†”—‰Ǥˆ–™‘’”‘†—…–•ƒ”‡•ƒ‹†–‘„‡„‹‘‡“—‹˜ƒŽ‡–
‹–‡ƒ•–Šƒ––Š‡›™‘—Ž†„‡‡š’‡…–‡†–‘„‡ǡˆ‘”ƒŽŽ
‹–‡–•ƒ†’—”’‘•‡•ǡ–Š‡•ƒ‡Ǥ‹‘Ǧƒ˜ƒ‹Žƒ„‹Ž‹–›‹•
ƒ‡ƒ•—”‡‡–‘ˆ–Š‡”ƒ–‡ƒ†‡š–‡––‘™Š‹…Šƒ
–Š‡”ƒ’‡—–‹…ƒŽŽ›ƒ…–‹˜‡…Š‡‹…ƒŽ‹•ƒ„•‘”„‡†ˆ”‘ƒ
†”—‰ ’”‘†—…– ‹–‘ –Š‡ •›•–‡‹… …‹”…—Žƒ–‹‘ ƒ†
„‡…‘‡•ƒ˜ƒ‹Žƒ„Ž‡ƒ––Š‡•‹–‡‘ˆƒ…–‹‘Ǥ
ͻǤ Ž‹‹…ƒŽ–”‹ƒŽ• Š‡ †”—‰• –Šƒ– ƒ”‡ †‡˜‡Ž‘’‡† ˆ‘” Š—ƒ
…‘•—’–‹‘ ™‘—Ž† —†‡”‰‘ Š—ƒ –‡•–‹‰ –‘
…‘ϐ‹”‹–•—–‹Ž‹–›ƒ†•ƒˆ‡–›„‡ˆ‘”‡„‡‹‰”‡‰‹•–‡”‡†
ˆ‘”ƒ”‡–‹‰ǤŠ‡…Ž‹‹…ƒŽ–”‹ƒŽ•Š‡Ž’‹…‘ŽŽ‡…–‹‘‘ˆ
‹ˆ‘”ƒ–‹‘”‡Žƒ–‡†–‘†”—‰•’”‘ϐ‹Ž‡‹Š—ƒ„‘†›
•—…Šƒ•ƒ„•‘”’–‹‘ǡ†‹•–”‹„—–‹‘ǡ‡–ƒ„‘Ž‹•ǡ
ͳͲǤ ‹‘ƒƒŽ›–‹…ƒŽ ‹‘ ƒƒŽ›•‹• ‹• ƒ •—„Ǧ†‹•…‹’Ž‹‡ ‘ˆ ƒƒŽ›–‹…ƒŽ
•–—†‹‡• …Š‡‹•–”›…‘˜‡”‹‰–Š‡“—ƒ–‹–ƒ–‹˜‡‡ƒ•—”‡‡–
‘ˆ †”—‰• ƒ† –Š‡‹” ‡–ƒ„‘Ž‹–‡•ǡ ƒ† „‹‘Ž‘‰‹…ƒŽ
‘Ž‡…—Ž‡•‹—ƒ–—”ƒŽŽ‘…ƒ–‹‘•‘”…‘…‡–”ƒ–‹‘•
ƒ†ƒ…”‘‘Ž‡…—Ž‡•ǡ’”‘–‡‹•ǡǡŽƒ”‰‡‘Ž‡…—Ž‡
†”—‰•ƒ†‡–ƒ„‘Ž‹–‡•‹„‹‘Ž‘‰‹…ƒŽ•›•–‡•Ǥ

2. B2B maintenance, repair and overhaul services of aircrafts or aircraft engines/components/parts:

S. No. Description of Services or circumstances Place of Supply

ͳǤ —’’Ž› ‘ˆ ƒ‹–‡ƒ…‡ǡ ”‡’ƒ‹” ‘” ‘˜‡”Šƒ—Ž •‡”˜‹…‡ ‹ ”‡•’‡…– ‘ˆ Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡••ŠƒŽŽ
ƒ‹”…”ƒˆ–•ǡ ƒ‹”…”ƒˆ– ‡‰‹‡• ƒ† ‘–Š‡” ƒ‹”…”ƒˆ– …‘’‘‡–• ‘” ’ƒ”–• „‡ –Š‡ Ž‘…ƒ–‹‘ ‘ˆ –Š‡ ”‡…‹’‹‡– ‘ˆ
•—’’Ž‹‡†–‘ƒ’‡”•‘ˆ‘”—•‡‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǥ •‡”˜‹…‡Ǥ
 670 Lesson 13 Ȉ EP-TL

Žƒ”‹ϐ‹…ƒ–‹‘regarding determination of place of supply in certain cases:

1. Services provided by PortsȂ
 – ‹• Š‡”‡„› …Žƒ”‹ϐ‹‡† –Šƒ– •—…Š •‡”˜‹…‡• ƒ”‡ ƒ…‹ŽŽƒ”› –‘ ‘” ”‡Žƒ–‡† –‘ …ƒ”‰‘ Šƒ†Ž‹‰ •‡”˜‹…‡• ƒ† ƒ”‡ ‘–
”‡Žƒ–‡†–‘‹‘˜ƒ„Ž‡’”‘’‡”–›Ǥ……‘”†‹‰Ž›ǡ–Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•™‹ŽŽ„‡†‡–‡”‹‡†ƒ•’‡”–Š‡
’”‘˜‹•‹‘•…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ͳʹ‘”•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ͳ͵‘ˆ–Š‡
…–ǡƒ•–Š‡
…ƒ•‡ƒ›„‡ǡ†‡’‡†‹‰—’‘–Š‡–‡”•‘ˆ–Š‡…‘–”ƒ…–„‡–™‡‡–Š‡•—’’Ž‹‡”ƒ†”‡…‹’‹‡–‘ˆ•—…Š•‡”˜‹…‡•Ǥ
2. Services rendered on goods temporarily imported in India
 Žƒ…‡‘ˆ•—’’Ž›‹…ƒ•‡‘ˆ’‡”ˆ‘”ƒ…‡„ƒ•‡†•‡”˜‹…‡•‹•–‘„‡†‡–‡”‹‡†ƒ•’‡”–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹
…Žƒ—•‡ȋƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ‡…–‹‘ͳ͵‘ˆ–Š‡
…–ƒ†‰‡‡”ƒŽŽ›–Š‡’Žƒ…‡‘ˆ•‡”˜‹…‡•‹•™Š‡”‡–Š‡
•‡”˜‹…‡•ƒ”‡ƒ…–—ƒŽŽ›’‡”ˆ‘”‡†Ǥ—–ƒ‡š…‡’–‹‘Šƒ•„‡‡…ƒ”˜‡†‘—–‹…ƒ•‡‘ˆ•‡”˜‹…‡••—’’Ž‹‡†‹”‡•’‡…–
‘ˆ‰‘‘†•™Š‹…Šƒ”‡–‡’‘”ƒ”‹Ž›‹’‘”–‡†‹–‘†‹ƒˆ‘””‡’ƒ‹”•‘”ˆ‘”ƒ›‘–Š‡”–”‡ƒ–‡–‘”’”‘…‡••ƒ†ƒ”‡
‡š’‘”–‡†ƒˆ–‡”•—…Š”‡’ƒ‹”•‘”–”‡ƒ–‡–‘”’”‘…‡••™‹–Š‘—–„‡‹‰’—––‘ƒ›—•‡‹†‹ƒǡ‘–Š‡”–Šƒ–Šƒ–
™Š‹…Š ‹• ”‡“—‹”‡† ˆ‘” •—…Š ”‡’ƒ‹”• ‘” –”‡ƒ–‡– ‘” ’”‘…‡••Ǥ  …ƒ•‡ ‘ˆ …—––‹‰ ƒ† ’‘Ž‹•Š‹‰ ƒ…–‹˜‹–› ‘
—’‘Ž‹•Š‡††‹ƒ‘†•™Š‹…Šƒ”‡–‡’‘”ƒ”‹Ž›‹’‘”–‡†‹–‘†‹ƒƒ”‡‘–’—––‘ƒ›—•‡‹†‹ƒǡ–Š‡’Žƒ…‡‘ˆ
•—’’Ž›™‘—Ž†„‡†‡–‡”‹‡†ƒ•’‡”–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ‡…–‹‘ͳ͵‘ˆ–Š‡
…–Ǥ
3. Place of supply in case of software/design services related to Electronics Semi-conductor and Design
Manufacturing (ESDM) industry
 —„‡”‘ˆ…‘’ƒ‹‡•–Šƒ–ƒ”‡’ƒ”–‘ˆ–Š‡‰”‘™‹‰Ž‡…–”‘‹…•‡‹…‘†—…–‘”ƒ†‡•‹‰ƒ—ˆƒ…–—”‹‰
ȋȌ‹†—•–”›‹†‹ƒƒ”‡‡‰ƒ‰‡†‹–Š‡’”‘…‡••‘ˆ†‡˜‡Ž‘’‹‰•‘ˆ–™ƒ”‡ƒ††‡•‹‰‹‰‹–‡‰”ƒ–‡†…‹”…—‹–•
‡Ž‡…–”‘‹…ƒŽŽ› ˆ‘” …—•–‘‡”• Ž‘…ƒ–‡† ‘˜‡”•‡ƒ•Ǥ Š‡ …Ž‹‡–Ȁ…—•–‘‡” ‡Ž‡…–”‘‹…ƒŽŽ› ’”‘˜‹†‡• †‹ƒ
†‡˜‡Ž‘’‡–ƒ††‡•‹‰…‘’ƒ‹‡•™‹–Š†‡•‹‰”‡“—‹”‡‡–•ƒ†–‡ŽŽ‡…–—ƒŽ”‘’‡”–›„Ž‘…•ȋDz„Ž‘…•dzǡ
”‡—•ƒ„Ž‡—‹–•‘ˆ•‘ˆ–™ƒ”‡Ž‘‰‹…ƒ††‡•‹‰Žƒ›‘—–•–Šƒ–…ƒ„‡…‘„‹‡†–‘ˆ‘”‡™‡”†‡•‹‰•ȌǤƒ•‡†‘
–Š‡•‡ǡ–Š‡†‹ƒ…‘’ƒ›†‹‰‹–ƒŽŽ›‹–‡‰”ƒ–‡•–Š‡˜ƒ”‹‘—•„Ž‘…•–‘†‡˜‡Ž‘’–Š‡•‘ˆ–™ƒ”‡ƒ†–Š‡•‹Ž‹…‘‘”
Šƒ”†™ƒ”‡†‡•‹‰ǤŠ‡•‡†‡•‹‰•ƒ”‡…‘—‹…ƒ–‡†ƒ„”‘ƒ†ȋ‹‹†—•–”›•–ƒ†ƒ”†‡Ž‡…–”‘‹…ˆ‘”ƒ–•Ȍ‡‹–Š‡”
–‘–Š‡…—•–‘‡”‘”ȋ‘„‡Š‡•–‘ˆ–Š‡…—•–‘‡”Ȍƒƒ—ˆƒ…–—”‹‰ˆƒ…‹Ž‹–›ˆ‘”–Š‡ƒ—ˆƒ…–—”‡‘ˆŠƒ”†™ƒ”‡
„ƒ•‡†‘•—…Š†‡•‹‰•Ǥ
  ƒ††‹–‹‘ǡ –Š‡ •‘ˆ–™ƒ”‡ †‡˜‡Ž‘’‡† ‹• ƒŽ•‘ ‹–‡‰”ƒ–‡† —’‘ ‘” …—•–‘‹œ‡† –‘ –Š‹• Šƒ”†™ƒ”‡Ǥ  •‘‡
‘……ƒ•‹‘•ǡ•ƒ’Ž‡•‘ˆ•—…Š’”‘–‘–›’‡Šƒ”†™ƒ”‡ƒ”‡–Š‡’”‘˜‹†‡†„ƒ…–‘–Š‡†‹ƒ†‡˜‡Ž‘’‡–ƒ††‡•‹‰
…‘’ƒ‹‡•–‘–‡•–ƒ†˜ƒŽ‹†ƒ–‡–Š‡•‘ˆ–™ƒ”‡ƒ††‡•‹‰–Šƒ–Šƒ•„‡‡†‡˜‡Ž‘’‡†–‘‡•—”‡–Šƒ–‹–‹•‡””‘”ˆ”‡‡Ǥ
Š‡–”ƒ†‡Šƒ•”‡“—‡•–‡†…Žƒ”‹ϐ‹…ƒ–‹‘‘™Š‡–Š‡”’”‘˜‹•‹‘‘ˆŠƒ”†™ƒ”‡’”‘–‘–›’‡•ƒ†•ƒ’Ž‡•ƒ†–‡•–‹‰–Š‡”‡‘
Ž‡†•–Š‡•‡•‡”˜‹…‡•–Š‡…Šƒ”ƒ…–‡”‘ˆ’‡”ˆ‘”ƒ…‡Ǧ„ƒ•‡†•‡”˜‹…‡•‹”‡•’‡…–‘ˆDz‰‘‘†•”‡“—‹”‡†–‘„‡ƒ†‡’Š›•‹…ƒŽŽ›
ƒ˜ƒ‹Žƒ„Ž‡„›–Š‡”‡…‹’‹‡––‘–Š‡’”‘˜‹†‡”dzǤ
Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘†‡–‡”‹ƒ–‹‘‘ˆ’Žƒ…‡‘ˆ•—’’Ž›ƒ•…‘–ƒ‹‡†‹–Š‡ Integrated Goods & Services Tax
Act, 2017Šƒ˜‡„‡‡‡šƒ‹‡†Ǥ‘”†‡”–‘‡•—”‡—‹ˆ‘”‹–›‹–Š‡‹’Ž‡‡–ƒ–‹‘‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡Žƒ™ǡ
–Š‡‘ƒ”†ǡ‹‡š‡”…‹•‡‘ˆ‹–•’‘™‡”•…‘ˆ‡””‡†„›•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͸ͺ‘ˆ–Š‡Central Goods & Services
Tax Act, 2017…Žƒ”‹ˆ‹‡•–Š‡•ƒ‡ƒ•„‡Ž‘™Ǥ
 …‘–”ƒ…–• ™Š‡”‡ •‡”˜‹…‡ ’”‘˜‹†‡” ‹• ‹˜‘Ž˜‡† ‹ ƒ …‘’‘•‹–‡ •—’’Ž› ‘ˆ •‘ˆ–™ƒ”‡ †‡˜‡Ž‘’‡– ƒ† †‡•‹‰ ˆ‘”
‹–‡‰”ƒ–‡†…‹”…—‹–•‡Ž‡…–”‘‹…ƒŽŽ›ǡ–‡•–‹‰‘ˆ•‘ˆ–™ƒ”‡‘•ƒ’Ž‡’”‘–‘–›’‡Šƒ”†™ƒ”‡‹•‘ˆ–‡ƒƒ…‹ŽŽƒ”›•—’’Ž›ǡ
™Š‡”‡ƒ•ǡ…Š‹’†‡•‹‰Ȁ•‘ˆ–™ƒ”‡†‡˜‡Ž‘’‡–‹•–Š‡’”‹…‹’ƒŽ•—’’Ž›‘ˆ–Š‡•‡”˜‹…‡’”‘˜‹†‡”ǤŠ‡•‡”˜‹…‡’”‘˜‹†‡”‹•
‘–‹˜‘Ž˜‡†‹•‘ˆ–™ƒ”‡–‡•–‹‰ƒŽ‘‡ƒ•ƒ•‡’ƒ”ƒ–‡•‡”˜‹…‡ǤŠ‡–‡•–‹‰‘ˆ•‘ˆ–™ƒ”‡Ȁ†‡•‹‰‹•ƒ‹‡†ƒ–‹’”‘˜‹‰
–Š‡“—ƒŽ‹–›‘ˆ•‘ˆ–™ƒ”‡Ȁ†‡•‹‰ƒ†‹•ƒƒ…‹ŽŽƒ”›ƒ…–‹˜‹–›ǤŠ‡‡–‹”‡ƒ…–‹˜‹–›‡‡†•–‘„‡˜‹‡™‡†ƒ•‘‡•—’’Ž›ƒ†
ƒ……‘”†‹‰Ž›–”‡ƒ–‡†ˆ‘”–Š‡’—”’‘•‡•‘ˆ–ƒšƒ–‹‘Ǥ”–‹ϐ‹…‹ƒŽ˜‹˜‹•‡…–‹‘‘ˆ–Š‡…‘–”ƒ…–‘ˆƒ…‘’‘•‹–‡•—’’Ž›‹•‘–
’”‘˜‹†‡†‹Žƒ™ǤŠ‡•‡…ƒ•‡•ƒ”‡ˆƒ…–„ƒ•‡†ƒ†‡ƒ…Š…ƒ•‡•Š‘—Ž†„‡‡šƒ‹‡†ˆ‘”–Š‡ƒ–—”‡‘ˆ•—’’Ž›…‘–”ƒ…–‡†Ǥ
Š‡”‡ˆ‘”‡ǡ‹–‹•…Žƒ”‹ϐ‹‡†–Šƒ––Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ•‘ˆ–™ƒ”‡Ȁ†‡•‹‰„›•—’’Ž‹‡”Ž‘…ƒ–‡†‹–ƒšƒ„Ž‡–‡””‹–‘”›–‘•‡”˜‹…‡
”‡…‹’‹‡–Ž‘…ƒ–‡†‹non-taxable territory„›—•‹‰•ƒ’Ž‡’”‘–‘–›’‡Šƒ”†™ƒ”‡Ȁ–‡•–‹–•‹ƒ…‘’‘•‹–‡•—’’Ž›ǡ
™Š‡”‡•—…Š–‡•–‹‰‹•ƒƒ…‹ŽŽƒ”›•—’’Ž›ǡ‹•–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡•‡”˜‹…‡”‡…‹’‹‡–ƒ•’‡”‡…–‹‘ͳ͵ȋʹȌ‘ˆ–Š‡
…–Ǥ
”‘˜‹•‹‘•‘ˆ‡…–‹‘ͳ͵ȋ͵ȌȋƒȌ‘ˆ
…–†‘‘–ƒ’’Ž›•‡’ƒ”ƒ–‡Ž›ˆ‘”†‡–‡”‹‹‰–Š‡’Žƒ…‡‘ˆ•—’’Ž›ˆ‘”ƒ…‹ŽŽƒ”›
•—’’Ž›‹•—…Š…ƒ•‡•Ǥ
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 671

TIME OF SUPPLY
Concept of Time: ‹‡‹•–Š‡‡••‡…‡‘ˆŽ‡˜›Ǥƒš‹•‹’‘•‡†™Š‡–Š‡•—’’Ž›‹•ƒ†‡Ǥ‡…‡‹–‹•‹’‘”–ƒ––‘
†‡–‡”‹‡–Š‡–‹‡‘ˆ•—’’Ž›Ǥ…‡–‹‡‘ˆ•—’’Ž›‹•†‡–‡”‹‡†ǡŽ‡˜›‹•ϐ‹š‡†ƒ†–‘„‡†‹•…Šƒ”‰‡†‘–Š‡†—‡†ƒ–‡Ǥ
‹‡‘ˆ•—’’Ž›‡ƒ•–Š‡’‘‹–‹–‹‡™Š‡‰‘‘†•Šƒ˜‡„‡‡†‡‡‡†–‘„‡•—’’Ž‹‡†‘”•‡”˜‹…‡•Šƒ˜‡„‡‡†‡‡‡†
–‘„‡’”‘˜‹†‡†ǤŠ‡–‹‡‘ˆ•—’’Ž›‡ƒ„Ž‡•—•–‘†‡–‡”‹‡–Š‡”ƒ–‡‘ˆ–ƒšǡ˜ƒŽ—‡ǡƒ††—‡†ƒ–‡•ˆ‘”’ƒ›‡–‘ˆ–ƒš‡•Ǥ
†‡”
ǡ–Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›–ƒšƒ”‹•‡•ƒ––Š‡–‹‡‘ˆ•—’’Ž›Ǥ
…–ǡʹͲͳ͹•–ƒ–‡•’”‘˜‹•‹‘•–‘†‡–‡”‹‡–‹‡‘ˆ
•—’’Ž›‘ˆ‰‘‘†•—†‡”•‡…–‹‘ͳʹƒ†–‹‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•—†‡”•‡…–‹‘ͳ͵‘ˆ–Š‡…–ǤŠ‡’”‘˜‹•‹‘•”‡Žƒ–‹‰
–‘–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ”‡„”‘ƒ†Ž›…‡–‡”‡†ƒ”‘—†–Š‡ˆ‘ŽŽ‘™‹‰…ƒ–‡‰‘”‹‡•ǡƒ•‡š’Žƒ‹‡†„›
–Š‡†‹ƒ‰”ƒ„‡Ž‘™ǣ

Time of Supply of Goods [Section 12 of CGST Act, 2017]

Section 12(1) : Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›–ƒš‘‰‘‘†••ŠƒŽŽƒ”‹•‡ƒ––Š‡–‹‡‘ˆ•—’’Ž›ǡƒ•†‡–‡”‹‡†‹ƒ……‘”†ƒ…‡ ™‹–Š –Š‡
’”‘˜‹•‹‘•‘ˆ–Š‹••‡…–‹‘Ǥ
Section 12(2) :
Forward Charge Mechanism
Š‡’”‘˜‹•‹‘•™‹–Š”‡•’‡…––‘–‹‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•—†‡”–Š‡ˆ‘”™ƒ”†…Šƒ”‰‡‡…Šƒ‹•…ƒ„‡†‡’‹…–‡†ƒ•
—†‡”ǡ–Š‡–‹‡‘ˆ•—’’Ž›™‘—Ž†„‡–Š‡‡ƒ”Ž‹‡•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰†ƒ–‡•„‡Ž‘™ǡ„—––Š‹•—•–„‡”‡ƒ†‹…‘Œ—…–‹‘
™‹–Š–Š‡‘–Š‡”‡›’‘‹–•‡–‹‘‡†„‡Ž‘™ǣ

Date of Issue of Invoice

Due date for Issue of Invoice

Š‡†—‡†ƒ–‡‘ˆ–Š‡‹˜‘‹…‡…ƒ„‡†‡…‹’Š‡”‡†ˆ”‘‡…–‹‘͵ͳȋͳȌ‘ˆ–Š‡…–™Š‹…Š‡–‹‘•–Šƒ––Š‡˜‘‹…‡—•–
„‡‹••—‡†Ǥ

S. No. Description Invoice must be issued

1. Š‡”‡–Š‡•—’’Ž›‹˜‘Ž˜‡•‘˜‡‡–‘ˆ–Š‡‰‘‘†• Ȁ„‡ˆ‘”‡ƒ––Š‡–‹‡‘ˆ”‡‘˜ƒŽ‘ˆ–Š‡‰‘‘†•
2. Š‡”‡–Š‡•—’’Ž›†‘‡•ǯ–‹˜‘Ž˜‡–Š‡‘˜‡‡–‘ˆ–Š‡ Ȁ„‡ˆ‘”‡ –Š‡ †‡Ž‹˜‡”› ‘ˆ –Š‡ ‰‘‘†• –‘ –Š‡
‰‘‘†• ”‡…‹’‹‡–
 672 Lesson 13 Ȉ EP-TL

3. …ƒ•‡‘ˆƒ…‘–‹—‘—••—’’Ž›‘ˆ‰‘‘†• ‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ‹••—ƒ…‡‘ˆ’‡”‹‘†‹…ƒŽ
•–ƒ–‡‡–Ȁ”‡…‡‹’–‘ˆ’‡”‹‘†‹…ƒŽ’ƒ›‡–
4.
‘‘†••—’’Ž‹‡†‘Dzƒ’’”‘˜ƒŽˆ‘”•ƒŽ‡Ȁ”‡–—”„ƒ•‹• ‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ•—’’Ž›‘”͸‘–Š•
ˆ”‘–Š‡†ƒ–‡‘ˆ”‡‘˜ƒŽǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”

Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–™‘—Ž†„‡…‘•‹†‡”‡†–‘„‡–Š‡‡ƒ”Ž‹‡”‘ˆǢ
ƒǤ ƒ–‡‘ˆ…”‡†‹–‹–Š‡‡–‹–›ǯ•„ƒƒ……‘—–ǡƒ•”‡ϐŽ‡…–‡†‹–Š‡„ƒ•–ƒ–‡‡–
„Ǥ ƒ–‡‘™Š‹…Š–Š‡’ƒ›‡–‹•”‡…‘”†‡†‹–Š‡„‘‘•‘ˆƒ……‘—–•‘ˆ–Š‡•—’’Ž‹‡”Ǥ
Note: ƒ–‡ ‘ˆ ”‡…‡‹’– ‘ˆ ƒ›‡– ‹• …—””‡–Ž› ‘– ”‡Ž‡˜ƒ– ˆ‘” †‡–‡”‹‹‰ –‹‡ ‘ˆ •—’’Ž› ‹ …ƒ•‡ ‘ˆ ‰‘‘†• ƒ•
‘–‹ϐ‹…ƒ–‹‘‘Ǥ͸͸ȀʹͲͳ͹Ǧ†ƒ–‡†ͳͷǦͳͳǦʹͲͳ͹Šƒ•’”‡•…”‹„‡†–Š‡–‹‡‘ˆ•—’’Ž›ˆ‘”‰‘‘†•ƒ••’‡…‹ϐ‹‡†‹•‡…–‹‘ͳʹȋʹȌ
ȋƒȌ‘ˆ–Š‡
…–‹Ǥ‡Ǥƒ–‡‘ˆ‹••—‡‘ˆ˜‘‹…‡‘”–Š‡Žƒ•–†ƒ–‡ˆ‘”‹••—ƒ…‡‘ˆ‹˜‘‹…‡ƒ•’‡”‡…–‹‘͵ͳ
…–Ǥ
‡…–‹‘ ͵ͳȋͶȌ ‘ˆ –Š‡ …– ’”‘˜‹†‡• –Šƒ– ‹ …ƒ•‡ ‘ˆ …‘–‹—‘—• •—’’Ž› ‘ˆ ‰‘‘†•ǡ ™Š‡”‡ •—……‡••‹˜‡ •–ƒ–‡‡–• ‘ˆ
ƒ……‘—–•‘”•—……‡••‹˜‡’ƒ›‡–•ƒ”‡‹˜‘Ž˜‡†ǡ–Š‡‹˜‘‹…‡•ŠƒŽŽ„‡‹••—‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‡ƒ…Š•—…Š•–ƒ–‡‡–
‹•‹••—‡†‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‡ƒ…Š•—…Š’ƒ›‡–‹•”‡…‡‹˜‡†Ǥ
—”–Š‡”ǡ‹–Šƒ•„‡‡’”‘˜‹†‡†ǡ‹ˆ–Š‡”‡‹•ƒ‡š…‡••’ƒ›‡–”‡…‡‹˜‡†ǡ—’–‘ͳͲͲͲȀǦǢ–Š‡•—’’Ž‹‡”…ƒ…Š‘‘•‡–‘–ƒ‡
–Š‡†ƒ–‡‘ˆ–Š‡‹˜‘‹…‡‹••—‡†™‹–Š”‡•’‡…––‘•—…Š‡š…‡••ƒ‘—–ǡƒ•–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ˆ‘”•—…Š‡š…‡••˜ƒŽ—‡Ǥ

Illustration 6

–†Ǥ•—’’Ž‹‡†‰‘‘†•–‘–†Ǥǡ—†‡”ƒ…‘–”ƒ…–ˆ‘”–Š‡‰‘‘†•–‘„‡†‡Ž‹˜‡”‡†–‘–Š‡ˆƒ…–‘”›‘ˆ–†ǤŠ‡
‰‘‘†•™‡”‡”‡‘˜‡†ˆ”‘–Š‡ˆƒ…–‘”›‘ˆ–†Ǥ‘ͻ–Š‡’–‡„‡”ǡʹͲʹͳƒ†–Š‡‰‘‘†•™‡”‡†‡Ž‹˜‡”‡†–‘–Š‡
ˆƒ…–‘”›‘ˆ‘ͳͷ–Š‡’–‡„‡”ǡʹͲʹͳǤ
Š‡‹˜‘‹…‡™ƒ•‹••—‡†‘ͳͺ–Š‡’–‡„‡”ǡʹͲʹͳƒ†–Š‡’ƒ›‡–™ƒ•…”‡†‹–‡†–‘ǯ•ƒȀ…‘ʹͲ–Š…–‘„‡”ǡ
ʹͲʹͳƒŽ–Š‘—‰Š–Š‡‡–”›‹–Š‡„‘‘•™ƒ•ƒ†‡‘ͳͻ–Š‡’–‡„‡”ǡʹͲʹͳ™Š‡–Š‡…Š‡“—‡™ƒ•”‡…‡‹˜‡†Ǥ
Ž‡ƒ•‡ƒ†˜‹•‡‘–Š‡‹‡‘ˆ—’’Ž›Ǥ
‘Ž—–‹‘ǣ–Š‡ƒ„‘˜‡…ƒ•‡ǡ–Š‡”‡Ž‡˜ƒ–†ƒ–‡•ƒ”‡ƒ•—†‡”ǣ
Ȉ ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡ǣͳͺ–Š‡’–‡„‡”ǡʹͲʹͳǤ
Ȉ —‡†ƒ–‡ˆ‘”‹••—‡‘ˆ‹˜‘‹…‡ǣͻ–Š‡’–‡„‡”ǡʹͲʹͳȋƒ•–Š‡•—’’Ž›‹˜‘Ž˜‡†‘˜‡‡–‘ˆ‰‘‘†•ȌǤ
Ȉ ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–ǣͳͻ–Š‡’–‡„‡”ǡʹͲʹͳȋ‡ƒ”Ž‹‡”‘ˆ–Š‡‡–”›‹–Š‡„‘‘•ƒ†–Š‡…”‡†‹–‹–Š‡
„ƒƒȀ…Ȍȏƒ–‡‘ˆ’ƒ›‡–‘–”‡Ž‡˜ƒ–‹–‡”•‘ˆ‘–‹ϐ‹…ƒ–‹‘‘Ǥ͸͸ȀʹͲͳ͹Ǧ†ƒ–‡†ͳͷǤͳͳǤʹͲͳ͹Ȑ
‡…‡ǡ–Š‡–‹‡‘ˆ•—’’Ž›™‹ŽŽ„‡ͻ–Š‡’–‡„‡”ǡʹͲʹͳǤ
Reverse Charge Mechanism [Section 12(3)]

Š‡–‹‡‘ˆ•—’’Ž›—†‡”–Š‡Dz”‡˜‡”•‡…Šƒ”‰‡‡…Šƒ‹•dz‹•–Š‡‡ƒ”Ž‹‡•–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
ƒȌ ƒ–‡‘ˆ”‡…‡‹’–‘ˆ‰‘‘†•
„Ȍ ͵Ͳ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‹˜‘‹…‡
…Ȍ ƒ–‡‘ˆ’ƒ›‡–ǡ™Š‹…Š‹•–Š‡‡ƒ”Ž‹‡”‘ˆ–Š‡†ƒ–‡‘ˆ†‡„‹–‹–Š‡„ƒƒ……‘—–ƒ•”‡ϐŽ‡…–‡†‹–Š‡„ƒ
•–ƒ–‡‡–ƒ†–Š‡†ƒ–‡‘ˆ”‡…‘”†‹‰–Š‡’ƒ›‡–‹–Š‡„‘‘•‘ˆƒ……‘—–ǡ„›–Š‡”‡…‹’‹‡–Ǥ
‡˜‡”•‡…Šƒ”‰‡‹…ƒ•‡‘ˆ‰‘‘†•ƒ›ƒ”‹•‡‡‹–Š‡”—†‡”‡…–‹‘ͻȋ͵Ȍ‘”‡…–‹‘ͻȋͶȌ‘ˆ–Š‡
…–Ǥ‡…–‹‘
ͻȋ͵Ȍ ‡’‘™‡”• –Š‡ ‹••—ƒ…‡ ‘ˆ ‘–‹ˆ‹…ƒ–‹‘ „› –Š‡
‘˜‡”‡– —†‡” ™Š‹…Š –Š‡ –ƒš ™‹ŽŽ „‡ ’ƒ‹† „› –Š‡
”‡…‹’‹‡– ‘ˆ ‰‘‘†• ƒ• ’‡” ”‡˜‡”•‡ …Šƒ”‰‡ ‡…Šƒ‹•Ǥ ‘–‹ˆ‹…ƒ–‹‘ ‘Ǥ ͶȀʹͲͳ͹Ǧ ‡–”ƒŽ ƒš ȋƒ–‡Ȍ †ƒ–‡†
ʹͺǤͲ͸ǤʹͲͳ͹ƒ•ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡’”‘˜‹†‡•–Š‡Ž‹•–‘ˆ‰‘‘†•™Š‹…Š™‹ŽŽ„‡•—„Œ‡…––‘”‡˜‡”•‡…Šƒ”‰‡
‡…Šƒ‹••—„Œ‡…––‘–Š‡…ƒ–‡‰‘”›‘ˆ•—’’Ž‹‡”ƒ†”‡…‹’‹‡–•’‡…‹ˆ‹‡†–Š‡”‡‹ǤŠ‡•‡‰‘‘†•‹…Ž—†‡…ƒ•Š‡™
Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 673

—–•ȋ‘–•Š‡ŽŽ‡†‘”’‡‡Ž‡†Ȍǡ„‹†‹™”ƒ’’‡”Ž‡ƒ˜‡•ȋ–‡†—Ȍǡ–‘„ƒ……‘Ž‡ƒ˜‡•ǡ”ƒ™…‘––‘ǡ•‹Ž›ƒ”ǡ•—’’Ž›‘ˆ
Ž‘––‡”›‡–…Ǥ
Illustration 7

”Ǥǡƒƒ‰”‹…—Ž–—”‹•–•—’’Ž‹‡•”ƒ™…‘––‘ȋ—†‡””‡˜‡”•‡…Šƒ”‰‡Ȍ–‘”Ǥ™Š‘ƒ—ˆƒ…–—”‡•…‘––‘•Š‹”–•ǤŠ‡
†ƒ–‡™‹•‡–—”‘—–‘ˆ‡˜‡–•‹•‰‹˜‡„‡Ž‘™ǣ
ͲͳǤͲͶǤʹͲʹͳǦ”Ǥƒ’’”‘ƒ…Š‡•”Ǥƒ†’Žƒ…‡•ƒ‘”†‡”ˆ‘”ͳ–‘‘ˆ…‘––‘
ͳͲǤͲͷǤʹͲʹͳǦ”Ǥ”‡…‡‹˜‡•–Š‡‰‘‘†•
ͳͷǤͲͷǤʹͲʹͳǦ”Ǥ‹••—‡•ƒ‹˜‘‹…‡
ʹͲǤͲͷǤʹͲʹͳǦ”Ǥƒ‡•ƒ’ƒ›‡–„›…Š‡“—‡ƒ†ƒ……‘”†‹‰Ž›”‡…‘”†•‹–‹Š‹•„‘‘•‘ˆƒ……‘—–•ǤʹͷǤͲͷǤʹͲʹͳǦ
Š‡’ƒ›‡–‰‡–•†‡„‹–‡†ˆ”‘”Ǥǯ•„ƒƒ……‘—–
–Š‹•…ƒ•‡ǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡‡ƒ”Ž‹‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰†ƒ–‡•ǣ
ƒȌ –Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ‰‘‘†•‹Ǥ‡ǤͳͲǤͲͷǤʹͲʹͳ
„Ȍ –Š‡†ƒ–‡‘ˆ’ƒ›‡–ƒ•”‡…‘”†‡†‹–Š‡„‘‘•‘ˆ”Ǥ‹Ǥ‡ǤʹͲǤͲͷǤʹͲʹͳ‘”–Š‡†ƒ–‡™Š‡–Š‡’ƒ›‡–‰‡–•
†‡„‹–‡†‹–Š‡„‘‘•‘ˆ–Š‡”‡…‹’‹‡–‹Ǥ‡ǤʹͷǤͲͷǤʹͲʹͳ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”
…Ȍ –Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡ǡ‹Ǥ‡ǤͳͷǤͲͷǤʹͲʹͳΪ͵Ͳ†ƒ›•Ϊ
ͳ†ƒ›αͳͷǤͲ͸ǤʹͲʹͳ
Š‡”‡ˆ‘”‡ǡ–Š‡–‹‡‘ˆ•—’’Ž›™‹ŽŽ„‡ͳͲǤͲͷǤʹͲʹͳǤ
Vouchers [Section (4)]

Š‡–‹‡‘ˆ•—’’Ž›˜‹•ǦǦ˜‹•˜‘—…Š‡”•‹•†‡–‡”‹‡†ƒ•—†‡”ǣ
ƒȌ Š‡”‡–Š‡•—’’Ž›‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ––Š‡–‹‡‘ˆ–Š‡‹••—‡‘ˆ–Š‡˜‘—…Š‡”ǡ–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ–Š‡˜‘—…Š‡”
™‘—Ž†„‡…‘•–”—‡†ƒ•–Š‡–‹‡‘ˆ•—’’Ž›ǡ
„Ȍ Š‡”‡–Š‡•—’’Ž›‹•‘–‹†‡–‹ϐ‹ƒ„Ž‡ƒ––Š‡–‹‡‘ˆ‹••—‡‘ˆ–Š‡˜‘—…Š‡”ǡ–Š‡†ƒ–‡‘ˆ”‡†‡’–‹‘‘ˆ–Š‡
˜‘—…Š‡”™‘—Ž†„‡…‘•–”—‡†ƒ•–Š‡–‹‡‘ˆ•—’’Ž›Ǥ
‘—…Š‡”•ƒ”‡‹•–”—‡–•–Šƒ–…ƒ„‡‡š…Šƒ‰‡†ƒ•’ƒ›‡–ˆ‘”‰‘‘†•Ȁ•‡”˜‹…‡•ǡ‘ˆ–Š‡†‡•‹‰ƒ–‡†˜ƒŽ—‡–Š‡”‡‹Ǥ
‡…‡ǡ’‡”†‡ϐ‹‹–‹‘ǡ–Š‡•‡ƒ”‡‹•–”—‡–•ǡ–Šƒ––Š‡’‘–‡–‹ƒŽ•—’’Ž‹‡”•ǡƒ”‡‘„Ž‹‰‡†–‘ƒ……‡’–ƒ•…‘•‹†‡”ƒ–‹‘
‹Ž‹‡—‘ˆ–Š‡‰‘‘†•Ȁ•‡”˜‹…‡••‘•—’’Ž‹‡†ǡ‹’ƒ”–‘”ˆ—ŽŽǤŠ‡•‡˜‘—…Š‡”••‡–‘—–…Ž‡ƒ”Ž›ǡ–Š‡–‡”•Ƭ…‘†‹–‹‘•‘ˆ
—•‡ǡ˜ƒŽ‹†‹–›ǡ‰‘‘†•Ȁ•‡”˜‹…‡•…‘˜‡”‡†ǡ‹†‡–‹–›‘ˆ–Š‡’‘–‡–‹ƒŽ•—’’Ž‹‡”•‡–…Ǥ
Illustration 8

–†Ǥǡ‡–‡”•‹–‘ƒƒ””ƒ‰‡‡–™‹–ŠDz—•Š—’’‹‡•dzǡ„—›•–Š‡˜‘—…Š‡”•ǡ–Š‡•‡˜‘—…Š‡”•™‡”‡‹••—‡†‘
ͳͶ–Š‡…‡„‡”ǡʹͲʹͲǤŠ‡‘’ƒ›–Š‡†‹•–”‹„—–‡•–Š‡•‡˜‘—…Š‡”•™‹–Š†‡‘‹ƒ–‹‘ͶǡͲͲͲȀǦ–‘ƒŽŽ‹–•
‡’Ž‘›‡‡• ‘ ʹͶ–Š ‡…‡„‡”ǡ ʹͲʹͲ ˜ƒŽ‹† —–‹Ž ͵ͳ•– ƒ—ƒ”›ǡ ʹͲʹͳ ǡ •‘ –Šƒ– –Š‡› …ƒ —•‡ –Š‡•‡ ˜‘—…Š‡”• ˆ‘”
„—›‹‰•Š‘‡•‘ˆ–Š‡‹”…Š‘‹…‡ǤŠ‡‡’Ž‘›‡‡•ƒ‡–Š‡‘•–‘ˆ‹–ƒ†”‡†‡‡–Š‡•‡˜‘—…Š‡”•‘–Š‡‡™‡ƒ”ǯ•ǡ
‹Ǥ‡Ǥǡ‘ͳ•– ƒ—ƒ”›ǡʹͲʹͳǤ–Š‹•…ƒ•‡ǡ–Š‡•—’’Ž›‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ––Š‡’‘‹–‘ˆ‹••—‡‘ˆ–Š‡˜‘—…Š‡”ƒ†Š‡…‡–Š‡
–‹‡‘ˆ•—’’Ž›™‘—Ž†„‡…‘•–”—‡†ƒ•ͳͶ–Š‡…‡„‡”ǡʹͲʹͲǤ
Illustration 9

‹•Šƒ„—›•ƒ˜‘—…Š‡”ˆ”‘Š‘’’‡”•–‘’ˆ‘”ͳͲǡͲͲͲƒ†‰‹ˆ–•‹––‘ƒ”—‘ͳͶ–Š ‡„”—ƒ”›ǤŠ‡˜‘—…Š‡”

™ƒ•˜ƒŽ‹†—–‹Žʹͻ–Š ‡„”—ƒ”›Ǥƒ”—”‡†‡‡•–Š‡˜‘—…Š‡”•ƒ––Š‡‡ƒ”„›Š‘’’‡”•–‘’•–‘”‡‘ʹͻ–Š ‡„”—ƒ”›Ǥ
•™‡”ǣ–Š‹•…ƒ•‡ǡ–Š‡•—’’Ž›™ƒ•‘–‹†‡–‹ϐ‹ƒ„Ž‡ƒ––Š‡’‘‹–‘ˆ‹••—‡‘ˆ–Š‡˜‘—…Š‡”ƒ•ƒ”—™ƒ•‘’‡–‘
’—”…Šƒ•‡ ƒ›–Š‹‰ ˆ”‘ Š‘’’‡”• –‘’ǡ –Š‡”‡ˆ‘”‡ –Š‡ –‹‡ ‘ˆ •—’’Ž› ™‘—Ž† „‡ …‘•–”—‡† ƒ• –Š‡ †ƒ–‡ ‘ˆ
”‡†‡’–‹‘‘ˆ–Š‡˜‘—…Š‡”ǡ–Šƒ–‹•ʹͻ–Š ‡„”—ƒ”›Ǥ
 674 Lesson 13 Ȉ EP-TL

All other instances [Section 12(5)]

ƒŽŽ‘–Š‡”‹•–ƒ…‡•ǡ–Š‡–‹‡‘ˆ•—’’Ž›ƒ•’‡”‡…–‹‘ͳʹȋͷȌ‹•ϐ‹š‡†ƒ•—†‡”ǣ
ƒȌ —‡Ǧ†ƒ–‡ˆ‘”ϐ‹Ž‹‰’‡”‹‘†‹…”‡–—”•‘”
„Ȍ ‘–Š‡”…ƒ•‡•ǡ–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ

‡…–‹‘ͳʹȋ͸ȌŠ‡–‹‡‘ˆ•—’’Ž›–‘–Š‡‡š–‡–‹–”‡Žƒ–‡•–‘ƒƒ††‹–‹‘‹–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›„›™ƒ›‘ˆ‹–‡”‡•–ǡ
Žƒ–‡ˆ‡‡‘”’‡ƒŽ–›ˆ‘”†‡Žƒ›‡†’ƒ›‡–‘ˆƒ›…‘•‹†‡”ƒ–‹‘•ŠƒŽŽ„‡–Š‡†ƒ–‡‘™Š‹…Š–Š‡•—’’Ž‹‡””‡…‡‹˜‡•
•—…Šƒ††‹–‹‘‹˜ƒŽ—‡Ǥ

Time of supply of services [Section 13 of CGST Act, 2017]

‡…–‹‘ͳ͵…‘˜‡”•–Š‡–‹‡‘ˆ•—’’Ž›ˆ‘”•‡”˜‹…‡•ǡƒ•‡–‹‘‡†ƒ„‘˜‡ǡ—†‡” ‘”™ƒ”†Šƒ”‰‡‡…Šƒ‹•ǡ‡˜‡”•‡
Šƒ”‰‡‡…Šƒ‹•ǡ‘—…Š‡”•ƒ†ƒŽŽ‘–Š‡”‹•–ƒ…‡•Ǥ
Forward Charge Mechanism [Section 13(2)]
Ȉ …ƒ•‡•™Š‡”‡–Š‡‹˜‘‹…‡Šƒ•„‡‡‹••—‡†‘–‹‡ǡƒ•’‡”‡…–‹‘͵ͳǡ‡ƒ”Ž‹‡”‘ˆ–Š‡†ƒ–‡‘ˆ‹˜‘‹…‡ƒ†–Š‡
†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–ǡ
‘ ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–™‘—Ž†„‡–Š‡‡ƒ”Ž‹‡”‘ˆ–Š‡†ƒ–‡‘ˆ…”‡†‹–‹–Š‡„ƒƒ……‘—–‘”–Š‡†ƒ–‡‘ˆ
‡–”›‹–Š‡„‘‘•‘ˆƒ……‘—–ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
Ȉ  …ƒ•‡•™Š‡”‡ –Š‡ ‹˜‘‹…‡ Šƒ• ‘– „‡‡ ‹••—‡†‘ –‹‡ǡ ’‡” ‡…–‹‘ ͵ͳǡ ‡ƒ”Ž‹‡” ‘ˆ –Š‡ †ƒ–‡ ‘ˆ ’”‘˜‹•‹‘‘ˆ
•‡”˜‹…‡ƒ†–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–ǡ
‘ ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–™‘—Ž†„‡–Š‡‡ƒ”Ž‹‡”‘ˆ–Š‡†ƒ–‡‘ˆ…”‡†‹–‹–Š‡„ƒƒ……‘—–‘”–Š‡†ƒ–‡‘ˆ
‡–”›‹–Š‡„‘‘•‘ˆƒ……‘—–ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
Ȉ ‡…–‹‘͵ͳƒ†ƒ–‡•–Šƒ––Š‡–‹‡Ž‹‹–ˆ‘”‹••—‡‘ˆ‹˜‘‹…‡‹•–Šƒ––Š‡‹˜‘‹…‡—•–„‡‹••—‡†‡‹–Š‡”„‡ˆ‘”‡–Š‡
’”‘˜‹•‹‘ ‘ˆ •‡”˜‹…‡ǡ ‘” ™‹–Š‹ ͵Ͳ †ƒ›• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ •—’’Ž› ‘ˆ •‡”˜‹…‡ ȋͶͷ †ƒ›• ˆ‘”   …‘’ƒ‹‡• Ƭ
 ǯ•ȌǤ
Ȉ  …ƒ•‡ ‘ˆ ‹•—”ƒ…‡ …‘’ƒ‹‡•Ȁ„ƒ‹‰ …‘’ƒ‹‡•Ȁϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘• ‹…Ž—†‹‰  •Ȁ–‡Ž‡…‘
…‘’ƒ‹‡•Ȁ‘–‹ϐ‹‡† •—’’Ž‹‡” ‘ˆ •‡”˜‹…‡• ƒ‹‰ –ƒšƒ„Ž‡ •—’’Ž‹‡• „‡–™‡‡ †‹•–‹…– ’‡”•‘ ƒ• •’‡…‹ϐ‹‡† ‹
•‡…–‹‘ʹͷǡ‹˜‘‹…‡ƒ›„‡‹••—‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ”‡…‘”†‹‰•—…Š•—’’Ž›‹–Š‡„‘‘•‘ˆƒ……‘—–‘”
„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡“—ƒ”–‡”†—”‹‰™Š‹…Š–Š‡•—’’Ž›™ƒ•ƒ†‡Ǥ
Ȉ ††‹–‹‘ƒŽŽ›ǡ™Š‡”‡–Š‡•—’’Ž›‹˜‘Ž˜‡•…‘–‹—‘—••—’’Ž›‘ˆ•‡”˜‹…‡•ǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†‘Ȁ„‡ˆ‘”‡
–Š‡†—‡†ƒ–‡‘ˆ’ƒ›‡–ȋ™Š‡”‡–Š‡…‘–”ƒ…–•’‡…‹ϐ‹‡•–Š‡†ƒ–‡Ȍ‘Ȁ„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆƒ…–—ƒŽ”‡…‡‹’–‘ˆ
’ƒ›‡–ȋ™Š‡”‡–Š‡†—‡†ƒ–‡‹•‘–ƒ•…‡”–ƒ‹ƒ„Ž‡ˆ”‘–Š‡‘–”ƒ…–Ȍ‘Ȁ„‡ˆ‘”‡–Š‡†ƒ–‡‘ˆ…‘’Ž‡–‹‘‘ˆ
‹Ž‡•–‘‡‡˜‡–™Š‡”‡–Š‡’ƒ›‡–‹•Ž‹‡†–‘…‘’Ž‡–‹‘‘ˆƒ‹Ž‡•–‘‡‡˜‡–Ǥ

Illustration 10
‡–‡”‹‡–Š‡–‹‡‘ˆ•—’’Ž›ˆ”‘–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ǣ

ͳͷ–Š…–‘„‡” Š‡ƒ””‹ƒ‰‡ŠƒŽŽ™ƒ•ϐ‹š‡†ƒ†–Š‡ƒ†˜ƒ…‡‘ˆʹͷͲͲͲ™ƒ•’ƒ‹†ȋƒ‘—–ƒ‰”‡‡†

™ƒ•ͳͲͲǡͲͲͲȌ
ʹͲ–Š…–‘„‡” ˜‘‹…‡‹••—‡†ˆ‘”ʹͷͲͲͲ
͵Ͳ–Š‘˜‡„‡” Š‡ƒ””‹ƒ‰‡…‡”‡‘›–‘‘’Žƒ…‡‹–Š‡ŠƒŽŽ
ͳͶ–Š‡…‡„‡” Š‡‹˜‘‹…‡ ™ƒ• ‹••—‡†ˆ‘” „ƒŽƒ…‡ ͹ͷͲͲͲ‹†‹…ƒ–‹‰ Ƭƒ†Œ—•–‹‰ –Š‡ ƒ†˜ƒ…‡
’ƒ‹†‡ƒ”Ž‹‡”
͵ͳ•–‡…‡„‡” Š‡„ƒŽƒ…‡’ƒ›‡–™ƒ•”‡…‡‹˜‡†

–Š‡ƒ„‘˜‡…ƒ•‡ǡ–Š‡‹˜‘‹…‡™ƒ•‹••—‡†™‹–Š‹–Š‡’”‡•…”‹„‡†–‹‡ȋ–Šƒ–‹•™‹–Š‹͵Ͳ†ƒ›•‘ˆ–Š‡‡˜‡–Ȍƒ†
Š‡…‡–Š‡–‹‡‘ˆ•—’’Ž›™‘—Ž†„‡–Š‡‡ƒ”Ž‹‡”‘ˆǣ
Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 675

ƒȌ Š‡†ƒ–‡‘ˆ‹˜‘‹…‡ǣ™Š‹…Š‹•ͳͶ–Š‡…‡„‡”ƒ†
„Ȍ Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–ǣ™Š‹…Š‹•͵ͳ•–‡…‡„‡”

Š‡”‡ˆ‘”‡ǡˆ‘”–Š‡ƒ‘—–‘ˆ͹ͷͲͲͲǡ–Š‡–‹‡‘ˆ•—’’Ž›™‘—Ž†„‡ͳͶ–Š‡…‡„‡”Ǥ ‘”–Š‡ƒ†˜ƒ…‡‘ˆ

ʹͷͲͲͲǡ–Š‡†ƒ–‡‘ˆ’ƒ›‡–’”‡…‡†‡•–Š‡‹˜‘‹…‡ƒ†Š‡…‡–Š‡–‹‡‘ˆ•—’’Ž›ˆ‘”–Šƒ–ƒ‘—–™‘—Ž†„‡ͳͷ–Š
…–‘„‡”Ǥ

•’‡”‡…–‹‘ͳ͵ȋʹȌǡ‹ˆ–Š‡”‡‹•ƒ‡š…‡••’ƒ›‡–”‡…‡‹˜‡†ǡ—’–‘ͳͲͲͲȀǦǢ–Š‡•—’’Ž‹‡”…ƒ…Š‘‘•‡–‘–ƒ‡
–Š‡†ƒ–‡‘ˆ–Š‡‹˜‘‹…‡‹••—‡†™‹–Š”‡•’‡…––‘•—…Š‡š…‡••ƒ‘—–ǡƒ•–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•ˆ‘”•—…Š
‡š…‡••˜ƒŽ—‡Ǥ

Reverse Charge Mechanism [Section 13(3)]

Š‡–‹‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•—†‡”–Š‡”‡˜‡”•‡…Šƒ”‰‡‡…Šƒ‹•™‘—Ž†„‡–Š‡‡ƒ”Ž‹‡•–‘ˆǣ
ƒȌ ͸Ͳ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‹˜‘‹…‡Ƭ
„Ȍ ƒ–‡‘ˆ’ƒ›‡–ǡ™Š‹…Š‹•–Š‡‡ƒ”Ž‹‡”‘ˆ–Š‡†ƒ–‡‘ˆ†‡„‹–‹–Š‡„ƒƒ……‘—–ƒ•”‡ϐŽ‡…–‡†‹–Š‡„ƒ
•–ƒ–‡‡–ƒ†–Š‡†ƒ–‡‘ˆ”‡…‘”†‹‰–Š‡’ƒ›‡–‹–Š‡„‘‘•‘ˆƒ……‘—–ǡ„›–Š‡”‡…‹’‹‡–

…ƒ•‡‘ˆ–”ƒ•ƒ…–‹‘•„‡–™‡‡Ǯƒ••‘…‹ƒ–‡†‡–‡”’”‹•‡•ǯ™Š‡”‡–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡‹•Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒǡ
–Š‡†ƒ–‡‘ˆ”‡…‘”†‹‰–Š‡•—’’Ž›‹–Š‡„‘‘•‘ˆ–Š‡”‡…‹’‹‡–‘”–Š‡†ƒ–‡‘ˆ’ƒ›‡–™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ǡ™‹ŽŽ„‡
–Š‡–‹‡‘ˆ•—’’Ž›Ǥ
Illustration 11
”Ǥ’”‘˜‹†‡•Ž‡‰ƒŽ•‡”˜‹…‡•ƒ•ƒƒ†˜‘…ƒ–‡–‘”Ǥ™Š‹…ŠˆƒŽŽ—†‡””‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǥ
ͳͲǤͲͶǤʹͲʹͲȂŠ‡•‡”˜‹…‡•ƒ”‡’”‘˜‹†‡†–‘”ǤͳʹǤͲͶǤʹͲʹͲȂ”Ǥ‹••—‡•ƒ‹˜‘‹…‡–‘”Ǥ
ͳͲǤͲ͹ǤʹͲʹͲȂŠ‡’ƒ›‡–‹•ƒ†‡„›”Ǥ–Š”‘—‰Šƒ…Š‡“—‡ƒ†”‡…‘”†‡†‹Š‹•„‘‘•‘ˆƒ……‘—–•ͳͷǤͲ͹ǤʹͲʹͲ
ȂŠ‡’ƒ›‡–‰‡–•†‡„‹–‡†ˆ”‘”Ǥǯ•„ƒƒ……‘—–
–Š‹•…ƒ•‡ǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡‡ƒ”Ž‹‡”‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰†ƒ–‡•ǣ
Š‡†ƒ–‡‘ˆ’ƒ›‡–‹Ǥ‡ǤͳͲǤͲ͹ǤʹͲʹͲȋ‡ƒ”Ž‹‡”‘ˆͳͲǤͲ͹ǤʹͲʹͲƒ†ͳͷǤͲ͹ǤʹͲʹͲȌ
Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ˆ‘ŽŽ‘™‹‰•‹š–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡‹Ǥ‡ǤͳʹǤͲ͸ǤʹͲʹͲȋͳʹǤͲͶǤʹͲʹͲΪ͸Ͳ†ƒ›•
Ϊͳ†ƒ›ȌǤ
Š‡”‡ˆ‘”‡ǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡ͳʹǤͲ͸ǤʹͲʹͲǤ
Vouchers [Section 13(4)]
Š‡ –‡”ǡ Dz˜‘—…Š‡”•dz Šƒ• „‡‡ ‡š’Žƒ‹‡† ‡ƒ”Ž‹‡” ‹ –Š‡ …Šƒ’–‡”Ǥ Š‡ –‹‡ ‘ˆ •—’’Ž› ‘ˆ ˜‘—…Š‡”• –Šƒ– ƒ”‡
‡š…Šƒ‰‡ƒ„Ž‡ˆ‘”•‡”˜‹…‡•ǡ‹•ƒ•—†‡”ǣ
ƒȌ ‹ˆ–Š‡•—’’Ž›‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ––Š‡’‘‹–‘ˆ‹••—‡ǡ–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ˜‘—…Š‡”
„Ȍ –Š‡†ƒ–‡‘ˆ”‡†‡’–‹‘‘ˆ˜‘—…Š‡”‹ƒŽŽ‘–Š‡”…ƒ•‡•Ǥ
All other instances [Section 13(5)]
ƒŽŽ‘–Š‡”‹•–ƒ…‡•ǡ–Š‡–‹‡‘ˆ•—’’Ž›’‡”‡…–‹‘ͳ͵ȋͷȌ‹•ϐ‹š‡†ƒ•—†‡”ǣ
ƒȌ —‡Ǧ†ƒ–‡ˆ‘”ϐ‹Ž‹‰’‡”‹‘†‹…”‡–—”•‘”
„Ȍ ‘–Š‡”…ƒ•‡•ǡ–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ
Ǥ
‡…–‹‘ͳ͵ȋ͸ȌŠ‡–‹‡‘ˆ•—’’Ž›–‘–Š‡‡š–‡–‹–”‡Žƒ–‡•–‘ƒƒ††‹–‹‘‹–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›„›™ƒ›‘ˆ‹–‡”‡•–ǡ
Žƒ–‡ˆ‡‡‘”’‡ƒŽ–›ˆ‘”†‡Žƒ›‡†’ƒ›‡–‘ˆƒ›…‘•‹†‡”ƒ–‹‘•ŠƒŽŽ„‡–Š‡†ƒ–‡‘™Š‹…Š–Š‡•—’’Ž‹‡””‡…‡‹˜‡•
•—…Šƒ††‹–‹‘‹˜ƒŽ—‡Ǥ
 676 Lesson 13 Ȉ EP-TL

Time of Supply in case of change in rate of tax [Section 14 of CGST Act, 2017]
‡…–‹‘ͳͶ‘ˆ–Š‡
…–ǡʹͲͳ͹†‡ϐ‹‡•–Š‡–‹‡‘ˆ•—’’Ž›ǡ™Š‡”‡–Š‡”‡‹•ƒ…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ–ƒš‹”‡•’‡…–‘ˆ
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ

Section 14(a)ǣ…ƒ•‡–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠŠƒ˜‡„‡‡•—’’Ž‹‡†„‡ˆ‘”‡–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ

•—’’Ž›…ƒ„‡†‡–‡”‹‡†ƒ•ˆ‘ŽŽ‘™•ǣ
ͳǤ ™Š‡”‡–Š‡‹˜‘‹…‡ˆ‘”–Š‡•ƒ‡Šƒ•„‡‡‹••—‡†ƒ†–Š‡’ƒ›‡–‹•ƒŽ•‘”‡…‡‹˜‡†ƒˆ–‡”–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ
–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–‘”–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡ǡ™Š‹…Š‡˜‡”‹•
‡ƒ”Ž‹‡”Ǣ‘”
ʹǤ ™Š‡”‡–Š‡‹˜‘‹…‡Šƒ•„‡‡‹••—‡†’”‹‘”–‘–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒš„—–’ƒ›‡–‹•”‡…‡‹˜‡†ƒˆ–‡”–Š‡…Šƒ‰‡
‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡Ǣ‘”
͵Ǥ ™Š‡”‡–Š‡’ƒ›‡–Šƒ•„‡‡”‡…‡‹˜‡†„‡ˆ‘”‡–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ„—––Š‡‹˜‘‹…‡ˆ‘”–Š‡•ƒ‡‹•‹••—‡†
ƒˆ–‡”–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–Ǥ

In case the goods or services or both have been supplied

before the change in rate of tax [Section 14(a)]

Š‡ǡ–Š‡–‹‡•—’’Ž›
…ƒ„‡†‡–‡”‹‡†

™Š‡”‡–Š‡‹˜‘‹…‡ˆ‘”–Š‡ ™Š‡”‡–Š‡‹˜‘‹…‡Šƒ• ™Š‡”‡–Š‡’ƒ›‡–Šƒ•„‡‡

•ƒ‡Šƒ•„‡‡‹••—‡† „‡‡‹••—‡†’”‹‘”–‘–Š‡ ”‡…‡‹˜‡†„‡ˆ‘”‡–Š‡…Šƒ‰‡
ƒ†–Š‡’ƒ›‡–‹•ƒŽ•‘ …Šƒ‰‡‹”ƒ–‡‘ˆ–ƒš„—– ‹”ƒ–‡‘ˆ–ƒšǡ„—––Š‡‹˜‘‹…‡
”‡…‡‹˜‡†ƒˆ–‡”–Š‡…Šƒ‰‡ ’ƒ›‡–‹•”‡…‡‹˜‡†ƒˆ–‡” ˆ‘”–Š‡•ƒ‡‹•‹••—‡†ƒˆ–‡”
‹”ƒ–‡‘ˆ–ƒšǡ –Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ –Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒš

–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ
–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ
„‡–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ
’ƒ›‡–
‹˜‘‹…‡
–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ
„‡–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘
’ƒ›‡–



–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ
‹˜‘‹…‡

WHICHEVER IS EARLIER
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 677

Section 14(b)ǣ…ƒ•‡–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠŠƒ˜‡„‡‡•—’’Ž‹‡†ƒˆ–‡”–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ

•—’’Ž›…ƒ„‡†‡–‡”‹‡†ƒ•ˆ‘ŽŽ‘™•ǣ
ͳǤ ™Š‡”‡–Š‡’ƒ›‡–‹•”‡…‡‹˜‡†ƒˆ–‡”–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒš„—––Š‡‹˜‘‹…‡Šƒ•„‡‡‹••—‡†’”‹‘”–‘–Š‡
…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–Ǣ‘”
ʹǤ ™Š‡”‡–Š‡‹˜‘‹…‡Šƒ•„‡‡‹••—‡†ƒ†’ƒ›‡–‹•”‡…‡‹˜‡†„‡ˆ‘”‡–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›
•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–‘”†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡ǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǣ‘”
͵Ǥ ™Š‡”‡ –Š‡ ‹˜‘‹…‡ Šƒ• „‡‡ ‹••—‡† ƒˆ–‡” –Š‡ …Šƒ‰‡ ‹ ”ƒ–‡ ‘ˆ –ƒš „—– –Š‡ ’ƒ›‡– ‹• ”‡…‡‹˜‡† „‡ˆ‘”‡ –Š‡
…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡Ǥ
”‘˜‹†‡†–Šƒ––Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ’ƒ›‡–•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ…”‡†‹–‹–Š‡„ƒƒ……‘—–‹ˆ•—…Š…”‡†‹–‹–Š‡„ƒ
ƒ……‘—–‹•ƒˆ–‡”ˆ‘—”™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ…Šƒ‰‡‹–Š‡”ƒ–‡‘ˆ–ƒšǤ
…ƒ•‡–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠŠƒ˜‡„‡‡•—’’Ž‹‡†ƒˆ–‡”–Š‡…Šƒ‰‡‹”ƒ–‡‘ˆ–ƒšǡ–Š‡–‹‡‘ˆ•—’’Ž›…ƒ„‡
†‡–‡”‹‡†ƒ•ˆ‘ŽŽ‘™•Ǣ
VALUE OF TAXABLE SUPPLY [SECTION 15 OF CGST ACT, 2017]
–—†‡–•—•–Šƒ˜‡—†‡”•–‘‘†–Š‡…‘…‡’–‘ˆ•—’’Ž›ǡ’Žƒ…‡‘ˆ•—’’Ž›ƒ†–‹‡‘ˆ•—’’Ž›Ǥ…‡ǡ‹–‹•‡•–ƒ„Ž‹•Š‡†–Šƒ–
–Š‡—†‡”Ž›‹‰–”ƒ•ƒ…–‹‘…‘•–‹–—–‡••—’’Ž›‹–‡”•‘ˆ‡…–‹‘͹‘ˆ–Š‡
…–ǡƒ’‡”•‘‹•Ž‹ƒ„Ž‡–‘’ƒ›–ƒš
—Ž‡••–Š‡–”ƒ•ƒ…–‹‘‹•‡š‡’–‡†ǤŠ‡–Š‡”–‘’ƒ›
Ϊ
Ȁ
‘”
ǡ‹•†‡–‡”‹‡†„›–Š‡’Žƒ…‡‘ˆ
•—’’Ž›ǤŠ‡–‘’ƒ›–Š‡–ƒš‹•†‡–‡”‹‡†„›–Š‡–‹‡‘ˆ•—’’Ž›Ǥ’‘”‡ƒ…Š‹‰–Š‹••–ƒ‰‡ǡ‹–‹•‡••‡–‹ƒŽ–‘‘™–Š‡
“—ƒ–—‘ˆ–ƒš–‘„‡’ƒ‹†ǤƒŽ—‡‘ˆ•—’’Ž›ƒ†”ƒ–‡‘ˆƒ’’Ž‹…ƒ„Ž‡–ƒšƒ”‡’”‡Ǧ”‡“—‹•‹–‡•–‘…ƒŽ…—Žƒ–‡–Š‡–ƒšŽ‹ƒ„‹Ž‹–›Ǥ
–Š‹••‡…–‹‘ǡ™‡™‹ŽŽ•–—†›–Š‡ˆƒ…‡–•‘ˆ˜ƒŽ—ƒ–‹‘ǡ–”ƒ•ƒ…–‹‘˜ƒŽ—‡ǡ‹…Ž—•‹‘•ƒ†‡š…Ž—•‹‘•–Š‡”‡ˆ”‘Ǥ
‡…–‹‘ͳͷ‘ˆ–Š‡
…–™Š‡”‡ƒ†‹…‘Œ—…–‹‘™‹–ŠŠƒ’–‡”ǣ‡–‡”‹ƒ–‹‘‘ˆƒŽ—‡‘ˆ—’’Ž›‘ˆ–Š‡

”—Ž‡•ǡ•–ƒ–‡•–Šƒ––Š‡˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•—’’Ž›—†‡”
‹•–Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡Ǥ”ƒ•ƒ…–‹‘˜ƒŽ—‡‹•†‡ϐ‹‡†ƒ•–Š‡
’”‹…‡ƒ…–—ƒŽŽ›’ƒ‹†‘”’ƒ›ƒ„Ž‡ˆ‘”–Š‡•ƒ‹†•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ™Š‡”‡–Š‡•—’’Ž‹‡”ƒ†–Š‡”‡…‹’‹‡–
‘ˆ–Š‡•—’’Ž›ƒ”‡‘–”‡Žƒ–‡†ǡƒ†–Š‡’”‹…‡‹•–Š‡•‘Ž‡…‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡•—’’Ž›Ǥȏ‡…–‹‘ͳͷȋͳȌȐ
‡…–‹‘ͳͷ‹•‡“—ƒŽŽ›ƒ’’Ž‹…ƒ„Ž‡–‘‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•—†‡”
Ǥ
Transaction value means

’”‹…‡ƒ…–—ƒŽŽ›’ƒ‹†Ȁ ™Š‡”‡•—’’Ž‹‡”ƒ† –Š‡’”‹…‡‹•–Š‡•‘Ž‡

’ƒ›ƒ„Ž‡ˆ‘”•—’’Ž›‘ˆ ”‡…‹’‹‡–‘ˆ•—’’Ž›ƒ”‡ …‘•‹†‡”ƒ–‹‘ˆ‘”–Š‡
‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Š ‘–”‡Žƒ–‡†ƒ† •—’’Ž›

Inclusions in determination of Value of Supply [Section 15(2)]

ȋƒȌ ƒ›–ƒš‡•ǡ†—–‹‡•ǡ…‡••ǡˆ‡‡•ƒ†…Šƒ”‰‡•Ž‡˜‹‡†—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡‘–Š‡”–Šƒ–Š‹•…–ǡ
–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡ–Š‡‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ƒ†–Š‡
‘‘†•ƒ†
‡”˜‹…‡•ƒšȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡ‹ˆ…Šƒ”‰‡†•‡’ƒ”ƒ–‡Ž›„›–Š‡•—’’Ž‹‡”Ǣ
ȋ„Ȍ ƒ›ƒ‘—––Šƒ––Š‡•—’’Ž‹‡”‹•Ž‹ƒ„Ž‡–‘’ƒ›‹”‡Žƒ–‹‘–‘•—…Š•—’’Ž›„—–™Š‹…ŠŠƒ•„‡‡‹…—””‡†„›–Š‡
”‡…‹’‹‡–‘ˆ–Š‡•—’’Ž›ƒ†‘–‹…Ž—†‡†‹–Š‡’”‹…‡ƒ…–—ƒŽŽ›’ƒ‹†‘”’ƒ›ƒ„Ž‡ˆ‘”–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
ȋ…Ȍ ‹…‹†‡–ƒŽ‡š’‡•‡•ǡ‹…Ž—†‹‰…‘‹••‹‘ƒ†’ƒ…‹‰ǡ…Šƒ”‰‡†„›–Š‡•—’’Ž‹‡”–‘–Š‡”‡…‹’‹‡–‘ˆƒ•—’’Ž›
ƒ†ƒ›ƒ‘—–…Šƒ”‰‡†ˆ‘”ƒ›–Š‹‰†‘‡„›–Š‡•—’’Ž‹‡”‹”‡•’‡…–‘ˆ–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”
„‘–Šƒ––Š‡–‹‡‘ˆǡ‘”„‡ˆ‘”‡†‡Ž‹˜‡”›‘ˆ‰‘‘†•‘”•—’’Ž›‘ˆ•‡”˜‹…‡•Ǣ
ȋ†Ȍ ‹–‡”‡•–‘”Žƒ–‡ˆ‡‡‘”’‡ƒŽ–›ˆ‘”†‡Žƒ›‡†’ƒ›‡–‘ˆƒ›…‘•‹†‡”ƒ–‹‘ˆ‘”ƒ›•—’’Ž›Ǣƒ†
ȋ‡Ȍ •—„•‹†‹‡• †‹”‡…–Ž› Ž‹‡† –‘ –Š‡ ’”‹…‡ ‡š…Ž—†‹‰ •—„•‹†‹‡• ’”‘˜‹†‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ† –ƒ–‡

‘˜‡”‡–•Ǥ
Explanation.Ȃ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ•‡…–‹‘ǡ–Š‡ƒ‘—–‘ˆ•—„•‹†›•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ
–Š‡•—’’Ž‹‡”™Š‘”‡…‡‹˜‡•–Š‡•—„•‹†›Ǥ
 678 Lesson 13 Ȉ EP-TL

Exclusions in determination of Value of Supply [Section 15(3)]

ȋƒȌ ›†‹•…‘—–™Š‹…Š‹•‰‹˜‡„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ–Š‡•—’’Ž›‹ˆ•—…Š†‹•…‘—–Šƒ•„‡‡†—Ž›”‡…‘”†‡†‹–Š‡
‹˜‘‹…‡‹••—‡†‹”‡•’‡…–‘ˆ•—…Š•—’’Ž›Ǣƒ†
ȋ„Ȍ ƒ›†‹•…‘—–‰‹˜‡ƒˆ–‡”–Š‡•—’’Ž›Šƒ•„‡‡ƒˆˆ‡…–‡†ǡ‹ˆȂ
Ȉ •—…Š†‹•…‘—–™ƒ•‘™ƒ†ƒ‰”‡‡†ƒ––Š‡–‹‡‘ˆ•—’’Ž›ǡ–Šƒ–‹•ǡ‡•–ƒ„Ž‹•Š‡†‹–‡”•‘ˆƒƒ‰”‡‡‡–
‡–‡”‡†‹–‘ƒ–‘”„‡ˆ‘”‡–Š‡–‹‡‘ˆ•—…Š•—’’Ž›ƒ†•’‡…‹ϐ‹…ƒŽŽ›Ž‹‡†–‘”‡Ž‡˜ƒ–‹˜‘‹…‡•Ǣƒ†
Ȉ ‹’—––ƒš…”‡†‹–ƒ•‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡†‹•…‘—–‘–Š‡„ƒ•‹•‘ˆ†‘…—‡–‹••—‡†„›–Š‡•—’’Ž‹‡”Šƒ•
„‡‡”‡˜‡”•‡†„›–Š‡”‡…‹’‹‡–‘ˆ–Š‡•—’’Ž›Ǥ
Š‡”‡–Š‡˜ƒŽ—‡‘ˆ–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š…ƒ‘–„‡†‡–‡”‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌǡ–Š‡•ƒ‡
•ŠƒŽŽ„‡†‡–‡”‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ[Section 15(4)]
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌ‘”•—„Ǧ•‡…–‹‘ȋͶȌǡ–Š‡˜ƒŽ—‡‘ˆ•—…Š•—’’Ž‹‡•ƒ•ƒ›„‡
‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Ž•ŠƒŽŽ„‡†‡–‡”‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡
’”‡•…”‹„‡†Ǥ[Section 15(5)]
‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…–’‡”•‘••ŠƒŽŽ„‡deemed to be “related persons” ‹ˆȂ
ȋ‹Ȍ •—…Š’‡”•‘•ƒ”‡‘ˆϐ‹…‡”•‘”†‹”‡…–‘”•‘ˆ‘‡ƒ‘–Š‡”ǯ•„—•‹‡••‡•Ǣ
ȋ‹‹Ȍ •—…Š’‡”•‘•ƒ”‡Ž‡‰ƒŽŽ›”‡…‘‰‹œ‡†’ƒ”–‡”•‹„—•‹‡••Ǣ
ȋ‹‹‹Ȍ •—…Š’‡”•‘•ƒ”‡‡’Ž‘›‡”ƒ†‡’Ž‘›‡‡Ǣ
ȋ‹˜Ȍ ƒ›’‡”•‘†‹”‡…–Ž›‘”‹†‹”‡…–Ž›‘™•ǡ …‘–”‘Ž•‘”Š‘Ž†•–™‡–›Ǧϐ‹˜‡’‡”…‡–‘”‘”‡‘ˆ–Š‡‘—–•–ƒ†‹‰
˜‘–‹‰•–‘…‘”•Šƒ”‡•‘ˆ„‘–Š‘ˆ–Š‡Ǣ
ȋ˜Ȍ ‘‡‘ˆ–Š‡†‹”‡…–Ž›‘”‹†‹”‡…–Ž›…‘–”‘Ž•–Š‡‘–Š‡”Ǣ
ȋ˜‹Ȍ „‘–Š‘ˆ–Š‡ƒ”‡†‹”‡…–Ž›‘”‹†‹”‡…–Ž›…‘–”‘ŽŽ‡†„›ƒ–Š‹”†’‡”•‘Ǣ
ȋ˜‹‹Ȍ –‘‰‡–Š‡”–Š‡›†‹”‡…–Ž›‘”‹†‹”‡…–Ž›…‘–”‘Žƒ–Š‹”†’‡”•‘Ǣ‘”
ȋ˜‹‹‹Ȍ –Š‡›ƒ”‡‡„‡”•‘ˆ–Š‡•ƒ‡ˆƒ‹Ž›Ǣ
Š‡–‡”Dz’‡”•‘dzƒŽ•‘‹…Ž—†‡•Ž‡‰ƒŽ’‡”•‘•ƒ†’‡”•‘•™Š‘ƒ”‡ƒ••‘…‹ƒ–‡†‹–Š‡„—•‹‡••‘ˆ‘‡ƒ‘–Š‡”‹–Šƒ–
‘‡‹•–Š‡•‘Ž‡ƒ‰‡–‘”•‘Ž‡†‹•–”‹„—–‘”‘”•‘Ž‡…‘…‡••‹‘ƒ‹”‡ǡŠ‘™•‘‡˜‡”†‡•…”‹„‡†ǡ‘ˆ–Š‡‘–Š‡”ǡ•ŠƒŽŽ„‡†‡‡‡†
–‘„‡”‡Žƒ–‡†Ǥ

‘ˆϐ‹…‡”•‘”†‹”‡…–‘”•
‘ˆ‘‡ƒ‘–Š‡”ǯ•
‡„‡”•‘ˆ–Š‡ „—•‹‡••‡• Ž‡‰ƒŽŽ›”‡…‘‰‹œ‡†
•ƒ‡ˆƒ‹Ž› ’ƒ”–‡”•‹„—•‹‡••

†‹”‡…–Ž›‘” Related ‡’Ž‘›‡”ƒ†

‹†‹”‡…–Ž›…‘–”‘Ž Persons ‡’Ž‘›‡‡
ƒ–Š‹”†’‡”•‘

†‹”‡…–Ž›‘”‹†‹”‡…–Ž›
†‹”‡…–Ž›‘” ‘™•ǡ…‘–”‘Ž•‘”
‹†‹”‡…–Ž› Š‘Ž†•–™‡–›Ǧϐ‹˜‡’‡”
…‘–”‘ŽŽ‡†„›ƒ †‹”‡…–Ž›‘” …‡–‘”‘”‡‘ˆ–Š‡
–Š‹”†’‡”•‘ ‹†‹”‡…–Ž›…‘–”‘Ž• ‘—–•–ƒ†‹‰˜‘–‹‰
–Š‡‘–Š‡” •–‘…‘”•Šƒ”‡•‘ˆ
„‘–Š‘ˆ–Š‡
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 679

VALUATION RULES : CHAPTER IV, CGST RULES, 2017

Rule 27: Value of supply of goods or services where the consideration is not wholly in money
Š‡”‡–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹•ˆ‘”ƒ…‘•‹†‡”ƒ–‹‘‘–™Š‘ŽŽ›‹‘‡›ǡ–Š‡˜ƒŽ—‡‘ˆ–Š‡•—’’Ž›•ŠƒŽŽǦ

ȋƒȌ „‡–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š•—’’Ž›Ǣ
ȋ„Ȍ ‹ˆ–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‹•‘–ƒ˜ƒ‹Žƒ„Ž‡—†‡”…Žƒ—•‡ȋƒȌǡ„‡–Š‡•—–‘–ƒŽ‘ˆ…‘•‹†‡”ƒ–‹‘‹‘‡›ƒ†ƒ›
•—…Šˆ—”–Š‡”ƒ‘—–‹‘‡›ƒ•‹•‡“—‹˜ƒŽ‡––‘–Š‡…‘•‹†‡”ƒ–‹‘‘–‹‘‡›ǡ‹ˆ•—…Šƒ‘—–‹•‘™ƒ–
–Š‡–‹‡‘ˆ•—’’Ž›Ǣ
ȋ…Ȍ ‹ˆ–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‹•‘–†‡–‡”‹ƒ„Ž‡—†‡”…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍǡ„‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”
•‡”˜‹…‡•‘”„‘–Š‘ˆŽ‹‡‹†ƒ†“—ƒŽ‹–›Ǣ
ȋ†Ȍ ‹ˆ–Š‡˜ƒŽ—‡‹•‘–†‡–‡”‹ƒ„Ž‡—†‡”…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋ„Ȍ‘”…Žƒ—•‡ȋ…Ȍǡ„‡–Š‡•—–‘–ƒŽ‘ˆ…‘•‹†‡”ƒ–‹‘
‹‘‡›ƒ†•—…Šˆ—”–Š‡”ƒ‘—–‹‘‡›–Šƒ–‹•‡“—‹˜ƒŽ‡––‘…‘•‹†‡”ƒ–‹‘‘–‹‘‡›ƒ•†‡–‡”‹‡†
„›–Š‡ƒ’’Ž‹…ƒ–‹‘‘ˆ”—Ž‡͵Ͳ‘””—Ž‡͵ͳ‹–Šƒ–‘”†‡”Ǥ
For example :
ͳǤ Š‡”‡ƒ‡™’Š‘‡‹••—’’Ž‹‡†ˆ‘”–™‡–›–Š‘—•ƒ†”—’‡‡•ƒŽ‘‰™‹–Š–Š‡‡š…Šƒ‰‡‘ˆƒ‘Ž†’Š‘‡ƒ†‹ˆ
–Š‡’”‹…‡‘ˆ–Š‡‡™’Š‘‡™‹–Š‘—–‡š…Šƒ‰‡‹•–™‡–›Ǧˆ‘—”–Š‘—•ƒ†”—’‡‡•ǡ–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡
‡™’Š‘‡‹•–™‡–›Ǧˆ‘—”–Š‘—•ƒ†”—’‡‡•Ǥ
ʹǤ Š‡”‡ƒŽƒ’–‘’‹••—’’Ž‹‡†ˆ‘”ˆ‘”–›–Š‘—•ƒ†”—’‡‡•ƒŽ‘‰™‹–Š–Š‡„ƒ”–‡”‘ˆƒ’”‹–‡”–Šƒ–‹•ƒ—ˆƒ…–—”‡†
„›–Š‡”‡…‹’‹‡–ƒ†–Š‡˜ƒŽ—‡‘ˆ–Š‡’”‹–‡”‘™ƒ––Š‡–‹‡‘ˆ•—’’Ž›‹•ˆ‘—”–Š‘—•ƒ†”—’‡‡•„—––Š‡‘’‡
ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡Žƒ’–‘’‹•‘–‘™ǡ–Š‡˜ƒŽ—‡‘ˆ–Š‡•—’’Ž›‘ˆ–Š‡Žƒ’–‘’‹•ˆ‘”–›Ǧˆ‘—”–Š‘—•ƒ†”—’‡‡•Ǥ
Analysis: Š‡”‡ǡ–Š‡…‘•‹†‡”ƒ–‹‘ˆ‘”ƒ•—’’Ž›‹•‘–™Š‘ŽŽ›‹‘‡›ȏ™Š‹…Š‡ƒ•–Š‡”‡‹•’‘”–‹‘‘ˆ…‘•‹†‡”ƒ–‹‘
’ƒ›ƒ„Ž‡ ‹ ‹†Ȑǡ ‘’‡ ƒ”‡– ˜ƒŽ—‡ ‘ˆ –Š‡ —†‡”Ž›‹‰ ‰‘‘†• ‘” •‡”˜‹…‡• •ŠƒŽŽ „‡ –Š‡ ˜ƒŽ—‡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ
…ƒŽ…—Žƒ–‹‰ –ƒš Ž‹ƒ„‹Ž‹–›Ǥ ‘™‡˜‡”ǡ ™Š‡”‡ǡ ‘’‡ ƒ”‡– ˜ƒŽ—‡ ‹• ƒŽ•‘ ‘– ƒ˜ƒ‹Žƒ„Ž‡ǡ –Š‡ ‘‡ ƒ› ‘‡–‹œ‡ –Š‡
…‘•‹†‡”ƒ–‹‘™Š‹…Š‹•‹‹†ƒ†ƒ††‹–Š‡…‘•‹†‡”ƒ–‹‘‹‘‡›–‘ƒ””‹˜‡ƒ––Š‡˜ƒŽ—‡‘ˆ•—’’Ž›Ǥ…ƒ•‡ǡ–Š‡
‡–Š‘†‘Ž‘‰‹‡•…ƒ‘–„‡ƒ’’Ž‹‡†ǡ–Š‡ǡ‘‡ƒ›ϐ‹†–Š‡˜ƒŽ—‡‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘ˆŽ‹‡‹†‘”“—ƒŽ‹–›ƒ†ƒ†‘’–
•—…Š˜ƒŽ—‡Ǥƒ›‘ˆ–Š‡ƒ„‘˜‡‡–Š‘†‘Ž‘‰‹‡•ƒ”‡‘–ƒ’’Ž‹…ƒ„Ž‡ǡ—Ž‡͵Ͳƒ†—Ž‡͵ͳ„‡ƒ’’Ž‹‡†–‘ƒ””‹˜‡ƒ––Š‡
˜ƒŽ—‡‘ˆƒ††‹–‹‘ƒŽ…‘•‹†‡”ƒ–‹‘‘–‹‘‡›–‘ϐ‹ƒŽŽ›ƒ””‹˜‡ƒ––Š‡˜ƒŽ—‡‘ˆ•—’’Ž›Ǥ
Rule 28: Value of supply of goods or services or both between distinct or related persons, other
than through an agent
Š‡˜ƒŽ—‡‘ˆ–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š„‡–™‡‡†‹•–‹…–’‡”•‘•ƒ••’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋͶȌƒ†ȋͷȌ
‘ˆ•‡…–‹‘ʹͷ‘”™Š‡”‡–Š‡•—’’Ž‹‡”ƒ†”‡…‹’‹‡–ƒ”‡”‡Žƒ–‡†ǡ‘–Š‡”–Šƒ™Š‡”‡–Š‡•—’’Ž›‹•ƒ†‡–Š”‘—‰Šƒƒ‰‡–ǡ
•ŠƒŽŽ
ȋƒȌ „‡–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š•—’’Ž›Ǣ
ȋ„Ȍ ‹ˆ–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‹•‘–ƒ˜ƒ‹Žƒ„Ž‡ǡ„‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘ˆŽ‹‡‹†ƒ†“—ƒŽ‹–›Ǣ
ȋ…Ȍ ‹ˆ–Š‡˜ƒŽ—‡‹•‘–†‡–‡”‹ƒ„Ž‡—†‡”…Žƒ—•‡ȋƒȌ‘”ȋ„Ȍǡ„‡–Š‡˜ƒŽ—‡ƒ•†‡–‡”‹‡†„›–Š‡ƒ’’Ž‹…ƒ–‹‘‘ˆ”—Ž‡
͵Ͳ‘””—Ž‡͵ͳǡ‹–Šƒ–‘”†‡”
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡‰‘‘†•ƒ”‡‹–‡†‡†ˆ‘”ˆ—”–Š‡”•—’’Ž›ƒ••—…Š„›–Š‡”‡…‹’‹‡–ǡ–Š‡˜ƒŽ—‡•ŠƒŽŽǡƒ––Š‡‘’–‹‘
‘ˆ–Š‡•—’’Ž‹‡”ǡ„‡ƒƒ‘—–‡“—‹˜ƒŽ‡––‘‹‡–›’‡”…‡–‘ˆ–Š‡’”‹…‡…Šƒ”‰‡†ˆ‘”–Š‡•—’’Ž›‘ˆ‰‘‘†•‘ˆŽ‹‡‹†
ƒ†“—ƒŽ‹–›„›–Š‡”‡…‹’‹‡––‘Š‹•…—•–‘‡”‘–„‡‹‰ƒ”‡Žƒ–‡†’‡”•‘ǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡–Š‡”‡…‹’‹‡–‹•‡Ž‹‰‹„Ž‡ˆ‘”ˆ—ŽŽ‹’—––ƒš…”‡†‹–ǡ–Š‡˜ƒŽ—‡†‡…Žƒ”‡†‹–Š‡‹˜‘‹…‡•ŠƒŽŽ
„‡†‡‡‡†–‘„‡–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•‘”•‡”˜‹…‡•Ǥ
Analysis: Š‡”‡–Š‡•—’’Ž‹‡”ƒ†”‡…‹’‹‡–ƒ”‡”‡Žƒ–‡†‘”†‹•–‹…–ǡ–Š‡•–ƒ–—–‡„‘‘”‡ˆ—•‡•–Š‡ƒ……‡’––Š‡–”ƒ•ƒ…–‹‘
˜ƒŽ—‡ ƒ• –Š‡”‡ ‹•‡˜‡”›’‘••‹„‹Ž‹–› ‘ˆ…‘ŽŽ—•‹‘ –‘ ”‡†—…‡ –Š‡˜ƒŽ—‡Ǥ Š—•ǡ—Ž‡ ʹͺ’”‘˜‹†‡•ˆ‘”ƒ†‘’–‹‘‘ˆ‘’‡
ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡•ƒ‡•—’’Ž›‘”‹ˆ‘–ƒ˜ƒ‹Žƒ„Ž‡ǡ‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•‘ˆŽ‹‡‹†ƒ†“—ƒŽ‹–›ǤŠ‡”‡
 680 Lesson 13 Ȉ EP-TL

–Š‡”‡…‹’‹‡–‹–‡†•–‘ƒ‡ˆ—”–Š‡”•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ǡ–Š‡’”‘˜‹•‹‘’‡”‹–•–Š‡•—’’Ž‹‡”–‘˜ƒŽ—‡–Š‡
‰‘‘†•ƒ–ͻͲΨ‘ˆ–Š‡’”‹…‡‹–‡†‡†–‘„‡…Šƒ”‰‡†„›–Š‡”‡…‹’‹‡–™Š‹Ž‡ƒ‹‰ˆ—”–Š‡”•—’’Ž›Ǥ–‹•ƒŽ•‘’”‘˜‹†‡†
–Šƒ–™Š‡”‡–Š‡”‡…‹’‹‡–‹•‡Ž‹‰‹„Ž‡–‘ƒ˜ƒ‹Žˆ—ŽŽ‹’—––ƒš…”‡†‹–ǡ–Š‡˜ƒŽ—‡ǡ™Šƒ–‡˜‡”ǡ‹•†‡…Žƒ”‡†„›–Š‡•—’’Ž‹‡”ǡ•ŠƒŽŽ
„‡ƒ……‡’–‡†ƒ•–Š‡…‘””‡…–˜ƒŽ—‡Ǥ
Rule 29: Value of supply of goods made or received through an agent
Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•„‡–™‡‡–Š‡’”‹…‹’ƒŽƒ†Š‹•ƒ‰‡–•ŠƒŽŽǡ
ȋƒȌ „‡–Š‡‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•„‡‹‰•—’’Ž‹‡†ǡ‘”ƒ––Š‡‘’–‹‘‘ˆ–Š‡•—’’Ž‹‡”ǡ„‡‹‡–›’‡”…‡–Ǥ‘ˆ
–Š‡’”‹…‡…Šƒ”‰‡†ˆ‘”–Š‡•—’’Ž›‘ˆ‰‘‘†•‘ˆŽ‹‡‹†ƒ†“—ƒŽ‹–›„›–Š‡”‡…‹’‹‡––‘Š‹•…—•–‘‡”‘–„‡‹‰ƒ
”‡Žƒ–‡†’‡”•‘ǡ™Š‡”‡–Š‡‰‘‘†•ƒ”‡‹–‡†‡†ˆ‘”ˆ—”–Š‡”•—’’Ž›„›–Š‡•ƒ‹†”‡…‹’‹‡–Ǥ
For exampleǣ’”‹…‹’ƒŽ•—’’Ž‹‡•‰”‘—†—––‘Š‹•ƒ‰‡–ƒ†–Š‡ƒ‰‡–‹••—’’Ž›‹‰‰”‘—†—–•‘ˆŽ‹‡‹†
ƒ†“—ƒŽ‹–›‹•—„•‡“—‡–•—’’Ž‹‡•ƒ–ƒ’”‹…‡‘ˆϐ‹˜‡–Š‘—•ƒ†”—’‡‡•’‡”“—‹–ƒŽ‘–Š‡†ƒ›‘ˆ–Š‡•—’’Ž›Ǥ
‘–Š‡”‹†‡’‡†‡–•—’’Ž‹‡”‹••—’’Ž›‹‰‰”‘—†—–•‘ˆŽ‹‡‹†ƒ†“—ƒŽ‹–›–‘–Š‡•ƒ‹†ƒ‰‡–ƒ––Š‡’”‹…‡
‘ˆˆ‘—”–Š‘—•ƒ†ϐ‹˜‡Š—†”‡†ƒ†ϐ‹ˆ–›”—’‡‡•’‡”“—‹–ƒŽǤŠ‡˜ƒŽ—‡‘ˆ–Š‡•—’’Ž›ƒ†‡„›–Š‡’”‹…‹’ƒŽ•ŠƒŽŽ
„‡ˆ‘—”–Š‘—•ƒ†ϐ‹˜‡Š—†”‡†ƒ†ϐ‹ˆ–›”—’‡‡•’‡”“—‹–ƒŽ‘”™Š‡”‡Š‡‡š‡”…‹•‡•–Š‡‘’–‹‘ǡ–Š‡˜ƒŽ—‡•ŠƒŽŽ
„‡ͻͲ’‡”…‡–‘ˆϐ‹˜‡–Š‘—•ƒ†”—’‡‡•‹Ǥ‡Ǥǡˆ‘—”–Š‘—•ƒ†ϐ‹˜‡Š—†”‡†”—’‡‡•’‡”“—‹–ƒŽǤ
ȋƒȌ ™Š‡”‡ –Š‡ ˜ƒŽ—‡ ‘ˆ ƒ •—’’Ž› ‹• ‘– †‡–‡”‹ƒ„Ž‡ —†‡” …Žƒ—•‡ ȋƒȌǡ –Š‡ •ƒ‡ •ŠƒŽŽ „‡ †‡–‡”‹‡† „› –Š‡
ƒ’’Ž‹…ƒ–‹‘‘ˆ”—Ž‡͵Ͳ‘””—Ž‡͵ͳ‹–Šƒ–‘”†‡”Ǥ
Rule 30: Value of supply of goods or services or both based on cost
Š‡”‡–Š‡˜ƒŽ—‡‘ˆƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‹•‘–†‡–‡”‹ƒ„Ž‡„›ƒ›‘ˆ–Š‡’”‡…‡†‹‰”—Ž‡•‘ˆ–Š‹•
Šƒ’–‡”ǡ–Š‡˜ƒŽ—‡•ŠƒŽŽ„‡‘‡Š—†”‡†ƒ†–‡’‡”…‡–‘ˆ–Š‡…‘•–‘ˆ’”‘†—…–‹‘‘”ƒ—ˆƒ…–—”‡‘”–Š‡…‘•–‘ˆ
ƒ…“—‹•‹–‹‘‘ˆ•—…Š‰‘‘†•‘”–Š‡…‘•–‘ˆ’”‘˜‹•‹‘‘ˆ•—…Š•‡”˜‹…‡•Ǥ
Rule 31: Residual method for determination of value of supply of goods or services or both
WŠ‡”‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š…ƒ‘–„‡†‡–‡”‹‡†—†‡””—Ž‡•ʹ͹–‘͵Ͳǡ–Š‡•ƒ‡•ŠƒŽŽ
„‡†‡–‡”‹‡†—•‹‰”‡ƒ•‘ƒ„Ž‡‡ƒ•…‘•‹•–‡–™‹–Š–Š‡’”‹…‹’Ž‡•ƒ†–Š‡‰‡‡”ƒŽ’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͳͷƒ†
–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”ǣ
”‘˜‹†‡†–Šƒ–‹–Š‡…ƒ•‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•ǡ–Š‡•—’’Ž‹‡”ƒ›‘’–ˆ‘”–Š‹•”—Ž‡ǡ‹‰‘”‹‰”—Ž‡͵ͲǤ
Rule 31A: Value of supply in case of lottery, betting, gambling and horse racing
ͳǤ ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• Šƒ’–‡”ǡ –Š‡ ˜ƒŽ—‡ ‹ ”‡•’‡…– ‘ˆ •—’’Ž‹‡•
•’‡…‹ϐ‹‡†„‡Ž‘™•ŠƒŽŽ„‡†‡–‡”‹‡†‹–Š‡ƒ‡”’”‘˜‹†‡†Š‡”‡‹ƒˆ–‡”Ǥ
ʹǤ Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆŽ‘––‡”›•ŠƒŽŽ„‡†‡‡‡†–‘„‡ͳͲͲȀͳʹͺ‘ˆ–Š‡ˆƒ…‡˜ƒŽ—‡‘ˆ–‹…‡–‘”‘ˆ–Š‡’”‹…‡ƒ•
‘–‹ϐ‹‡†‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡„›–Š‡”‰ƒ‹•‹‰–ƒ–‡ǡ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ
 š’Žƒƒ–‹‘ǣǦ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ”—Ž‡ǡ–Š‡‡š’”‡••‹‘Dz”‰ƒ‹•‹‰–ƒ–‡dzŠƒ•–Š‡•ƒ‡‡ƒ‹‰ƒ•
ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋˆȌ‘ˆ•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡ʹ‘ˆ–Š‡‘––‡”‹‡•ȋ‡‰—Žƒ–‹‘Ȍ—Ž‡•ǡʹͲͳͲǤ
͵Ǥ Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆƒ…–‹‘ƒ„Ž‡…Žƒ‹‹–Š‡ˆ‘”‘ˆ…Šƒ…‡–‘™‹‹„‡––‹‰ǡ‰ƒ„Ž‹‰‘”Š‘”•‡”ƒ…‹‰‹ƒ
”ƒ…‡…Ž—„•ŠƒŽŽ„‡ͳͲͲΨ‘ˆ–Š‡ˆƒ…‡˜ƒŽ—‡‘ˆ–Š‡„‡–‘”–Š‡ƒ‘—–’ƒ‹†‹–‘–Š‡–‘–ƒŽ‹•ƒ–‘”Ǥ
Rule 32: Determination of value in respect of certain supplies
ͳǤ ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• Šƒ’–‡”ǡ –Š‡ ˜ƒŽ—‡ ‹ ”‡•’‡…– ‘ˆ •—’’Ž‹‡•
•’‡…‹ϐ‹‡†„‡Ž‘™•ŠƒŽŽǡƒ––Š‡‘’–‹‘‘ˆ–Š‡•—’’Ž‹‡”ǡ„‡†‡–‡”‹‡†‹–Š‡ƒ‡”’”‘˜‹†‡†Š‡”‡‹ƒˆ–‡”
ʹǤ Š‡ ˜ƒŽ—‡ ‘ˆ •—’’Ž› ‘ˆ •‡”˜‹…‡• ‹ ”‡Žƒ–‹‘ –‘ –Š‡ ’—”…Šƒ•‡ ‘” •ƒŽ‡ ‘ˆ ˆ‘”‡‹‰ …—””‡…›ǡ ‹…Ž—†‹‰ ‘‡›
…Šƒ‰‹‰ǡ•ŠƒŽŽ„‡†‡–‡”‹‡†„›–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǡƒ‡Ž›ǣǦ
ȋƒȌ ˆ‘”ƒ…—””‡…›ǡ™Š‡‡š…Šƒ‰‡†ˆ”‘ǡ‘”–‘ǡ†‹ƒ—’‡‡•ǡ–Š‡˜ƒŽ—‡•ŠƒŽŽ„‡‡“—ƒŽ–‘–Š‡†‹ˆˆ‡”‡…‡‹
–Š‡„—›‹‰”ƒ–‡‘”–Š‡•‡ŽŽ‹‰”ƒ–‡ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ†–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ”‡ˆ‡”‡…‡”ƒ–‡ˆ‘”
–Šƒ–…—””‡…›ƒ––Šƒ––‹‡ǡ—Ž–‹’Ž‹‡†„›–Š‡–‘–ƒŽ—‹–•‘ˆ…—””‡…›ǣ
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 681

 ”‘˜‹†‡†–Šƒ–‹…ƒ•‡™Š‡”‡–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒ”‡ˆ‡”‡…‡”ƒ–‡ˆ‘”ƒ…—””‡…›‹•‘–ƒ˜ƒ‹Žƒ„Ž‡ǡ–Š‡
˜ƒŽ—‡•ŠƒŽŽ„‡‘‡’‡”…‡–‘ˆ–Š‡‰”‘••ƒ‘—–‘ˆ†‹ƒ—’‡‡•’”‘˜‹†‡†‘””‡…‡‹˜‡†„›–Š‡’‡”•‘
…Šƒ‰‹‰–Š‡‘‡›ǣ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‹…ƒ•‡™Š‡”‡‡‹–Š‡”‘ˆ–Š‡…—””‡…‹‡•‡š…Šƒ‰‡†‹•†‹ƒ—’‡‡•ǡ–Š‡˜ƒŽ—‡
•ŠƒŽŽ„‡‡“—ƒŽ–‘‘‡’‡”…‡–‘ˆ–Š‡Ž‡••‡”‘ˆ–Š‡–™‘ƒ‘—–•–Š‡’‡”•‘…Šƒ‰‹‰–Š‡‘‡›™‘—Ž†
Šƒ˜‡”‡…‡‹˜‡†„›…‘˜‡”–‹‰ƒ›‘ˆ–Š‡–™‘…—””‡…‹‡•‹–‘†‹ƒ—’‡‡‘–Šƒ–†ƒ›ƒ––Š‡”‡ˆ‡”‡…‡
”ƒ–‡’”‘˜‹†‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒǤ
 ”‘˜‹†‡†ƒŽ•‘–Šƒ–ƒ’‡”•‘•—’’Ž›‹‰–Š‡•‡”˜‹…‡•ƒ›‡š‡”…‹•‡–Š‡‘’–‹‘–‘ƒ•…‡”–ƒ‹–Š‡˜ƒŽ—‡‹
–‡”•‘ˆ…Žƒ—•‡ȋ„Ȍˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”ƒ†•—…Š‘’–‹‘•ŠƒŽŽ‘–„‡™‹–Š†”ƒ™†—”‹‰–Š‡”‡ƒ‹‹‰
’ƒ”–‘ˆ–Šƒ–ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ
ȋ„Ȍ ƒ––Š‡‘’–‹‘‘ˆ–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•ǡ–Š‡˜ƒŽ—‡‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆˆ‘”‡‹‰…—””‡…›ǡ‹…Ž—†‹‰
‘‡›…Šƒ‰‹‰ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡
ȋ‹Ȍ ‘‡’‡”…‡–‘ˆ–Š‡‰”‘••ƒ‘—–‘ˆ…—””‡…›‡š…Šƒ‰‡†ˆ‘”ƒƒ‘—–—’–‘‘‡ŽƒŠ”—’‡‡•ǡ
•—„Œ‡…––‘ƒ‹‹—ƒ‘—–‘ˆ–™‘Š—†”‡†ƒ†ϐ‹ˆ–›”—’‡‡•Ǣ
ȋ‹‹Ȍ ‘‡–Š‘—•ƒ†”—’‡‡•ƒ†ŠƒŽˆ‘ˆƒ’‡”…‡–‘ˆ–Š‡‰”‘••ƒ‘—–‘ˆ…—””‡…›‡š…Šƒ‰‡†ˆ‘”ƒ
ƒ‘—–‡š…‡‡†‹‰‘‡ŽƒŠ”—’‡‡•ƒ†—’–‘–‡ŽƒŠ”—’‡‡•Ǣƒ†
ȋ‹‹‹Ȍ ϐ‹˜‡ –Š‘—•ƒ† ƒ† ϐ‹˜‡ Š—†”‡† ”—’‡‡• ƒ† ‘‡ –‡–Š ‘ˆ ƒ ’‡” …‡– ‘ˆ –Š‡ ‰”‘•• ƒ‘—– ‘ˆ
…—””‡…›‡š…Šƒ‰‡†ˆ‘”ƒƒ‘—–‡š…‡‡†‹‰–‡ŽƒŠ”—’‡‡•ǡ•—„Œ‡…––‘ƒƒš‹—ƒ‘—–‘ˆ
•‹š–›–Š‘—•ƒ†”—’‡‡•Ǥ
͵Ǥ Š‡˜ƒŽ—‡‘ˆ–Š‡•—’’Ž›‘ˆ•‡”˜‹…‡•‹”‡Žƒ–‹‘–‘„‘‘‹‰‘ˆ–‹…‡–•ˆ‘”–”ƒ˜‡Ž„›ƒ‹”’”‘˜‹†‡†„›ƒƒ‹”–”ƒ˜‡Ž
ƒ‰‡–•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒƒ‘—–…ƒŽ…—Žƒ–‡†ƒ––Š‡”ƒ–‡‘ˆϐ‹˜‡’‡”…‡–‘ˆ–Š‡„ƒ•‹…ˆƒ”‡‹–Š‡…ƒ•‡‘ˆ
†‘‡•–‹…„‘‘‹‰•ǡƒ†ƒ––Š‡”ƒ–‡‘ˆ–‡’‡”…‡–‘ˆ–Š‡„ƒ•‹…ˆƒ”‡‹–Š‡…ƒ•‡‘ˆ‹–‡”ƒ–‹‘ƒŽ„‘‘‹‰•‘ˆ
’ƒ••ƒ‰‡ˆ‘”–”ƒ˜‡Ž„›ƒ‹”Ǥ
ExplanationǤǦ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ”—Ž‡ǡ–Š‡‡š’”‡••‹‘Dz„ƒ•‹…ˆƒ”‡dz‡ƒ•–Šƒ–’ƒ”–‘ˆ–Š‡ƒ‹”ˆƒ”‡‘
™Š‹…Š…‘‹••‹‘‹•‘”ƒŽŽ›’ƒ‹†–‘–Š‡ƒ‹”–”ƒ˜‡Žƒ‰‡–„›–Š‡ƒ‹”Ž‹‡•Ǥ
ͶǤ Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•‹”‡Žƒ–‹‘–‘Ž‹ˆ‡‹•—”ƒ…‡„—•‹‡•••ŠƒŽŽ„‡ǡǦ
ȋƒȌ –Š‡‰”‘••’”‡‹—…Šƒ”‰‡†ˆ”‘ƒ’‘Ž‹…›Š‘Ž†‡””‡†—…‡†„›–Š‡ƒ‘—–ƒŽŽ‘…ƒ–‡†ˆ‘”‹˜‡•–‡–ǡ‘”
•ƒ˜‹‰•‘„‡ŠƒŽˆ‘ˆ–Š‡’‘Ž‹…›Š‘Ž†‡”ǡ‹ˆ•—…Šƒƒ‘—–‹•‹–‹ƒ–‡†–‘–Š‡’‘Ž‹…›Š‘Ž†‡”ƒ––Š‡–‹‡‘ˆ
•—’’Ž›‘ˆ•‡”˜‹…‡Ǣ
ȋ„Ȍ ‹…ƒ•‡‘ˆ•‹‰Ž‡’”‡‹—ƒ—‹–›’‘Ž‹…‹‡•‘–Š‡”–ŠƒȋƒȌ–‡’‡”…‡–‘ˆ•‹‰Ž‡’”‡‹—…Šƒ”‰‡†ˆ”‘
–Š‡’‘Ž‹…›Š‘Ž†‡”Ǣ‘”
ȋ…Ȍ ‹ƒŽŽ‘–Š‡”…ƒ•‡•ǡ–™‡–›Ǧϐ‹˜‡’‡”…‡–‘ˆ–Š‡’”‡‹—…Šƒ”‰‡†ˆ”‘–Š‡’‘Ž‹…›Š‘Ž†‡”‹–Š‡ϐ‹”•–›‡ƒ”
ƒ†–™‡Ž˜‡ƒ†ƒŠƒŽˆ’‡”…‡–‘ˆ–Š‡’”‡‹—…Šƒ”‰‡†ˆ”‘–Š‡’‘Ž‹…›Š‘Ž†‡”‹•—„•‡“—‡–›‡ƒ”•ǣ
 ”‘˜‹†‡†–Šƒ–‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••—„Ǧ”—Ž‡•ŠƒŽŽƒ’’Ž›™Š‡”‡–Š‡‡–‹”‡’”‡‹—’ƒ‹†„›–Š‡
’‘Ž‹…›Š‘Ž†‡”‹•‘Ž›–‘™ƒ”†•–Š‡”‹•…‘˜‡”‹Ž‹ˆ‡‹•—”ƒ…‡Ǥ
ͷǤ Š‡”‡ƒ–ƒšƒ„Ž‡•—’’Ž›‹•’”‘˜‹†‡†„›ƒ’‡”•‘†‡ƒŽ‹‰‹„—›‹‰ƒ†•‡ŽŽ‹‰‘ˆ•‡…‘†Šƒ†‰‘‘†•‹Ǥ‡Ǥǡ—•‡†
‰‘‘†•ƒ••—…Š‘”ƒˆ–‡”•—…Š‹‘”’”‘…‡••‹‰™Š‹…Š†‘‡•‘–…Šƒ‰‡–Š‡ƒ–—”‡‘ˆ–Š‡‰‘‘†•ƒ†™Š‡”‡‘
‹’—––ƒš…”‡†‹–Šƒ•„‡‡ƒ˜ƒ‹Ž‡†‘–Š‡’—”…Šƒ•‡‘ˆ•—…Š‰‘‘†•ǡ–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›•ŠƒŽŽ„‡–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡
–Š‡•‡ŽŽ‹‰’”‹…‡ƒ†–Š‡’—”…Šƒ•‡’”‹…‡ƒ†™Š‡”‡–Š‡˜ƒŽ—‡‘ˆ•—…Š•—’’Ž›‹•‡‰ƒ–‹˜‡ǡ‹–•ŠƒŽŽ„‡‹‰‘”‡†ǣ
 ”‘˜‹†‡†–Šƒ––Š‡’—”…Šƒ•‡˜ƒŽ—‡‘ˆ‰‘‘†•”‡’‘••‡••‡†ˆ”‘ƒ†‡ˆƒ—Ž–‹‰„‘””‘™‡”ǡ™Š‘‹•‘–”‡‰‹•–‡”‡†ǡˆ‘”
–Š‡ ’—”’‘•‡ ‘ˆ ”‡…‘˜‡”› ‘ˆ ƒ Ž‘ƒ ‘”†‡„– •ŠƒŽŽ „‡ †‡‡‡†–‘ „‡ –Š‡ ’—”…Šƒ•‡ ’”‹…‡‘ˆ •—…Š ‰‘‘†•„› –Š‡
†‡ˆƒ—Ž–‹‰„‘””‘™‡””‡†—…‡†„›ϐ‹˜‡’‡”…‡–ƒ‰‡’‘‹–•ˆ‘”‡˜‡”›“—ƒ”–‡”‘”’ƒ”––Š‡”‡‘ˆǡ„‡–™‡‡–Š‡†ƒ–‡‘ˆ
’—”…Šƒ•‡ƒ†–Š‡†ƒ–‡‘ˆ†‹•’‘•ƒŽ„›–Š‡’‡”•‘ƒ‹‰•—…Š”‡’‘••‡••‹‘Ǥ
͸Ǥ Š‡˜ƒŽ—‡‘ˆƒ–‘‡ǡ‘”ƒ˜‘—…Š‡”ǡ‘”ƒ…‘—’‘ǡ‘”ƒ•–ƒ’ȋ‘–Š‡”–Šƒ’‘•–ƒ‰‡•–ƒ’Ȍ™Š‹…Š‹•”‡†‡‡ƒ„Ž‡
ƒ‰ƒ‹•–ƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•ŠƒŽŽ„‡‡“—ƒŽ–‘–Š‡‘‡›˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”
„‘–Š”‡†‡‡ƒ„Ž‡ƒ‰ƒ‹•–•—…Š–‘‡ǡ˜‘—…Š‡”ǡ…‘—’‘ǡ‘”•–ƒ’Ǥ
 682 Lesson 13 Ȉ EP-TL

͹Ǥ Š‡˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•‡”˜‹…‡•’”‘˜‹†‡†„›•—…Š…Žƒ••‘ˆ•‡”˜‹…‡’”‘˜‹†‡”•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–ǡ
‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡƒ•”‡ˆ‡””‡†–‘‹’ƒ”ƒ‰”ƒ’Šʹ‘ˆ…Š‡†—Ž‡‘ˆ–Š‡•ƒ‹†…–„‡–™‡‡
†‹•–‹…–’‡”•‘•ƒ•”‡ˆ‡””‡†–‘‹•‡…–‹‘ʹͷǡ™Š‡”‡‹’—––ƒš…”‡†‹–‹•ƒ˜ƒ‹Žƒ„Ž‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡Ǥ
Rule 33: Value of supply of services in case of pure agent
‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‹• Šƒ’–‡”ǡ –Š‡ ‡š’‡†‹–—”‡ ‘” …‘•–• ‹…—””‡† „› ƒ
•—’’Ž‹‡”ƒ•ƒ’—”‡ƒ‰‡–‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•—’’Ž›•ŠƒŽŽ„‡‡š…Ž—†‡†ˆ”‘–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›ǡ‹ˆƒŽŽ–Š‡ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ǡƒ‡Ž›ǡǦ
ȋ‹Ȍ –Š‡•—’’Ž‹‡”ƒ…–•ƒ•ƒ’—”‡ƒ‰‡–‘ˆ–Š‡”‡…‹’‹‡–‘ˆ–Š‡•—’’Ž›ǡ™Š‡Š‡ƒ‡•–Š‡’ƒ›‡––‘–Š‡–Š‹”†’ƒ”–›
‘ƒ—–Š‘”‹œƒ–‹‘„›•—…Š”‡…‹’‹‡–Ǣ
ȋ‹‹Ȍ –Š‡’ƒ›‡–ƒ†‡„›–Š‡’—”‡ƒ‰‡–‘„‡ŠƒŽˆ‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•—’’Ž›Šƒ•„‡‡•‡’ƒ”ƒ–‡Ž›‹†‹…ƒ–‡†‹–Š‡
‹˜‘‹…‡‹••—‡†„›–Š‡’—”‡ƒ‰‡––‘–Š‡”‡…‹’‹‡–‘ˆ•‡”˜‹…‡Ǣƒ†
ȋ‹‹‹Ȍ –Š‡•—’’Ž‹‡•’”‘…—”‡†„›–Š‡’—”‡ƒ‰‡–ˆ”‘–Š‡–Š‹”†’ƒ”–›ƒ•ƒ’—”‡ƒ‰‡–‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•—’’Ž›ƒ”‡‹
ƒ††‹–‹‘–‘–Š‡•‡”˜‹…‡•Š‡•—’’Ž‹‡•‘Š‹•‘™ƒ……‘—–Ǥ
ExplanationǦ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•”—Ž‡ǡ–Š‡‡š’”‡••‹‘Dz’—”‡ƒ‰‡–dz‡ƒ•ƒ’‡”•‘™Š‘ǡ
ȋƒȌ ‡–‡”•‹–‘ƒ…‘–”ƒ…–—ƒŽƒ‰”‡‡‡–™‹–Š–Š‡”‡…‹’‹‡–‘ˆ•—’’Ž›–‘ƒ…–ƒ•Š‹•’—”‡ƒ‰‡––‘‹…—”‡š’‡†‹–—”‡
‘”…‘•–•‹–Š‡…‘—”•‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
ȋ„Ȍ ‡‹–Š‡”‹–‡†•–‘Š‘Ž†‘”Š‘Ž†•ƒ›–‹–Ž‡–‘–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•‘’”‘…—”‡†‘”•—’’Ž‹‡†ƒ•’—”‡
ƒ‰‡–‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•—’’Ž›Ǣ
ȋ…Ȍ †‘‡•‘–—•‡ˆ‘”Š‹•‘™‹–‡”‡•–•—…Š‰‘‘†•‘”•‡”˜‹…‡••‘’”‘…—”‡†Ǣƒ†
ȋ†Ȍ ”‡…‡‹˜‡•‘Ž›–Š‡ƒ…–—ƒŽƒ‘—–‹…—””‡†–‘’”‘…—”‡•—…Š‰‘‘†•‘”•‡”˜‹…‡•‹ƒ††‹–‹‘–‘–Š‡ƒ‘—–”‡…‡‹˜‡†
ˆ‘”•—’’Ž›Š‡’”‘˜‹†‡•‘Š‹•‘™ƒ……‘—–Ǥ
For exampleǣ‘”’‘”ƒ–‡•‡”˜‹…‡• ‹”‹•‡‰ƒ‰‡†–‘Šƒ†Ž‡–Š‡Ž‡‰ƒŽ™‘”’‡”–ƒ‹‹‰–‘–Š‡‹…‘”’‘”ƒ–‹‘‘ˆ
‘’ƒ›Ǥ–Š‡”–Šƒ‹–••‡”˜‹…‡ˆ‡‡•ǡƒŽ•‘”‡…‘˜‡”•ˆ”‘ǡ”‡‰‹•–”ƒ–‹‘ˆ‡‡ƒ†ƒ’’”‘˜ƒŽˆ‡‡ˆ‘”–Š‡ƒ‡‘ˆ–Š‡
…‘’ƒ›’ƒ‹†–‘–Š‡‡‰‹•–”ƒ”‘ˆ‘’ƒ‹‡•ǤŠ‡ˆ‡‡•…Šƒ”‰‡†„›–Š‡‡‰‹•–”ƒ”‘ˆ‘’ƒ‹‡•ˆ‘”–Š‡”‡‰‹•–”ƒ–‹‘
ƒ†ƒ’’”‘˜ƒŽ‘ˆ–Š‡ƒ‡ƒ”‡…‘’—Ž•‘”‹Ž›Ž‡˜‹‡†‘Ǥ‹•‡”‡Ž›ƒ…–‹‰ƒ•ƒ’—”‡ƒ‰‡–‹–Š‡’ƒ›‡–‘ˆ–Š‘•‡
ˆ‡‡•ǤŠ‡”‡ˆ‘”‡ǡǯ•”‡…‘˜‡”›‘ˆ•—…Š‡š’‡•‡•‹•ƒ†‹•„—”•‡‡–ƒ†‘–’ƒ”–‘ˆ–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›ƒ†‡„›–‘Ǥ
Rule 34: Rate of exchange of currency, other than Indian rupees, for determination of value
ȋͳȌ Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡‰‘‘†••ŠƒŽŽ„‡–Š‡ƒ’’Ž‹…ƒ„Ž‡”ƒ–‡‘ˆ‡š…Šƒ‰‡ƒ•
‘–‹ϐ‹‡†„›–Š‡‘ƒ”†—†‡”•‡…–‹‘ͳͶ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹˆ‘”–Š‡†ƒ–‡‘ˆ–‹‡‘ˆ•—’’Ž›‘ˆ•—…Š‰‘‘†•
‹–‡”•‘ˆ•‡…–‹‘ͳʹ‘ˆ–Š‡…–Ǥ
ȋʹȌ Š‡”ƒ–‡‘ˆ‡š…Šƒ‰‡ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•‡”˜‹…‡••ŠƒŽŽ„‡–Š‡ƒ’’Ž‹…ƒ„Ž‡”ƒ–‡‘ˆ‡š…Šƒ‰‡
†‡–‡”‹‡†ƒ•’‡”–Š‡‰‡‡”ƒŽŽ›ƒ……‡’–‡†ƒ……‘—–‹‰’”‹…‹’Ž‡•ˆ‘”–Š‡†ƒ–‡‘ˆ–‹‡‘ˆ•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•
‹–‡”•‘ˆ•‡…–‹‘ͳ͵‘ˆ–Š‡…–Ǥ
Rule 35: Value of supply inclusive of integrated tax, Central tax, State tax, Union territory tax
Š‡”‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‹•‹…Ž—•‹˜‡‘ˆ‹–‡‰”ƒ–‡†–ƒš‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ‹‘–‡””‹–‘”›
–ƒšǡ–Š‡–ƒšƒ‘—–•ŠƒŽŽ„‡†‡–‡”‹‡†‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǡƒ‡Ž›ǡȂ
ƒšƒ‘—–αȋƒŽ—‡‹…Ž—•‹˜‡‘ˆ–ƒš‡•–ƒš”ƒ–‡‹Ψ‘ˆ
‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ
ǡ
‘”
Ȍ
ίȋͳͲͲΪ•—‘ˆ–ƒš”ƒ–‡•ǡƒ•ƒ’’Ž‹…ƒ„Ž‡ǡ‹ΨȌ
ExplanationǦ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”ǡ–Š‡‡š’”‡••‹‘•ǡ
ȋƒȌ Dz‘’‡ƒ”‡–˜ƒŽ—‡dz‘ˆƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‡ƒ•–Š‡ˆ—ŽŽ˜ƒŽ—‡‹‘‡›ǡ‡š…Ž—†‹‰–Š‡
‹–‡‰”ƒ–‡†–ƒšǡ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ‹‘–‡””‹–‘”›–ƒšƒ†–Š‡…‡••’ƒ›ƒ„Ž‡„›ƒ’‡”•‘‹ƒ–”ƒ•ƒ…–‹‘ǡ
™Š‡”‡–Š‡•—’’Ž‹‡”ƒ†–Š‡”‡…‹’‹‡–‘ˆ–Š‡•—’’Ž›ƒ”‡‘–”‡Žƒ–‡†ƒ†–Š‡’”‹…‡‹•–Š‡•‘Ž‡…‘•‹†‡”ƒ–‹‘ǡ–‘
‘„–ƒ‹•—…Š•—’’Ž›ƒ––Š‡•ƒ‡–‹‡™Š‡–Š‡•—’’Ž›„‡‹‰˜ƒŽ—‡†‹•ƒ†‡Ǣ
 Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 683

ȋ„Ȍ Dz•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘ˆŽ‹‡‹†ƒ†“—ƒŽ‹–›dz‡ƒ•ƒ›‘–Š‡”•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”
„‘–Šƒ†‡—†‡”•‹‹Žƒ”…‹”…—•–ƒ…‡•–Šƒ–ǡ‹”‡•’‡…–‘ˆ–Š‡…Šƒ”ƒ…–‡”‹•–‹…•ǡ“—ƒŽ‹–›ǡ“—ƒ–‹–›ǡˆ—…–‹‘ƒŽ
…‘’‘‡–•ǡƒ–‡”‹ƒŽ•ǡƒ†–Š‡”‡’—–ƒ–‹‘‘ˆ–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šϐ‹”•–‡–‹‘‡†ǡ‹•–Š‡•ƒ‡ƒ•ǡ‘”
…Ž‘•‡Ž›‘”•—„•–ƒ–‹ƒŽŽ›”‡•‡„Ž‡•ǡ–Šƒ–•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ

Illustration 16
‹•Šƒ–‡”’”‹•‡•Šƒ†ƒ†‡•—’’Ž‹‡•‘ˆ͹ͷͲǡͲͲͲ–‘‡‡ƒ›‡”˜‹…‡•ǤŠ‡”‡™ƒ•ƒ–ƒšŽ‡˜‹‡†„›—‹…‹’ƒŽ
—–Š‘”‹–‹‡•‘•—…Š•ƒŽ‡‘ˆ͹ͷǡͲͲͲȀǦǤ
ƒ†
…Šƒ”‰‡ƒ„Ž‡‘–Š‡•—’’Ž›™ƒ•͵͹ͷͲͲȀǦǤƒ…‹‰…Šƒ”‰‡•ǡ
‘–‹…Ž—†‡†‹–Š‡’”‹…‡ƒ„‘˜‡ƒ‘—–‡†–‘ͳͷǡͲͲͲǤ

‹•Šƒ –‡”’”‹•‡• ”‡…‡‹˜‡† ƒ •—„•‹†› ‘ˆ  ͵ͲǡͲͲͲȀǦ ˆ”‘ ƒ 

 ‘ –Š‡ •ƒŽ‡ ‘ˆ •—…Š ‰‘‘†•ǡ ƒ† –Š‡ ’”‹…‡
‡–‹‘‡†ƒ„‘˜‡‹•ƒˆ–‡”–ƒ‹‰‹–‘ƒ……‘—––Š‡•—„•‹†›Ǥ

‹•…‘—–‘ˆˆ‡”‡†‹•̷ͳΨƒ†–Šƒ–ǯ•‡–‹‘‡†‘–Š‡˜‘‹…‡Ǥ

‡–‡”‹‡–Š‡ƒŽ—‡‘ˆ—’’Ž›Ǥ

”‹…‡Šƒ”‰‡† ͹ǡͷͲǡͲͲͲ
††ǣ ƒš…Šƒ”‰‡†„›—‹…‹’ƒŽ—–Š‘”‹–‹‡• ͹ͷǡͲͲͲ
ƒ…‹‰Šƒ”‰‡• ͳͷǡͲͲͲ
—„•‹†›ˆ”‘
 ͵ͲǡͲͲͲ
‘–ƒŽƒˆ–‡”ƒŽŽ‹…Ž—•‹‘• ͺǡ͹ͲǡͲͲͲ
‡••ǣ ‹•…‘—–̷ͳΨ ͹ǡͷͲͲ
Notes

ͳǤ 
ƒ†
‹•‘–‹…Ž—†‡†‹–Š‡†‡–‡”‹ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆ•—’’Ž›ǡ”ƒ–Š‡”–ƒš‡†’‘•–†‡–‡”‹ƒ–‹‘‘
–Š‡•ƒ‡Ǥ

ʹǤ —„•‹†›•‹…‡”‡…‡‹˜‡†ˆ”‘ƒ‘Ǧ‰‘˜‡”‡–ƒŽ„‘†›‹•ƒ††‡†„ƒ…–‘†‡–‡”‹‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›

͵Ǥ ‹•…‘—–‘„ƒ•‹…’”‹…‡‹•ƒ‡š…Ž—•‹‘Ǥ

LESSON ROUND-UP

Ȉ Š‡–Š‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹•™‹–Š‹–Š‡•ƒ‡•–ƒ–‡ǡ‹–‹•ƒ‹–”ƒǦ•–ƒ–‡—’’Ž›ǡ
ƒ†‹ˆ–Š‡•‡ƒ”‡‹†‹ˆˆ‡”‡–•–ƒ–‡•ǡ–Š‡–Šƒ–‹•‹–‡”Ǧ•–ƒ–‡•—’’Ž›Ǥ
Ȉ ‘…‘ˆ‘”™‹–Š‹–‡”ƒ–‹‘ƒŽ•–ƒ†ƒ”†•ǡ
’ƒ‹†‘‰‘‘†•–ƒ‡‘—–‘ˆ†‹ƒ„›ƒˆ‘”‡‹‰–‘—”‹•–™‹ŽŽ„‡
”‡ˆ—†‡†—†‡”
…–ǡʹͲͳ͹Ǥ
Ȉ Žƒ…‡‘ˆ•—’’Ž›‹•‹’‘”–ƒ––‘†‡–‡”‹‡–Š‡ƒ–—”‡‘ˆ•ƒŽ‡ȋ‹–‡”Ǧ•–ƒ–‡ǡ‹–”ƒǦ•–ƒ–‡ǡ‹’‘”–‘”‡š’‘”–Ȍƒ†
–Š‡–ƒ–‡™Š‡”‡•–ƒ–‡…‘’‘‡–‘ˆ
™‹ŽŽƒ……”—‡Ǥ
Ȉ ‘‹–‘ˆ–ƒšƒ–‹‘‡ƒ•–Š‡’‘‹–‹–‹‡™Š‡‰‘‘†•Šƒ˜‡„‡‡†‡‡‡†–‘„‡•—’’Ž‹‡†‘”•‡”˜‹…‡•Šƒ˜‡
„‡‡†‡‡‡†–‘„‡’”‘˜‹†‡†Ǥ
Ȉ ‘—…Š‡”•ƒ”‡‹•–”—‡–•–Šƒ–…ƒ„‡‡š…Šƒ‰‡†ƒ•’ƒ›‡–ˆ‘”‰‘‘†•Ȁ•‡”˜‹…‡•ǡ‘ˆ–Š‡†‡•‹‰ƒ–‡†˜ƒŽ—‡
–Š‡”‡‹Ǥ
Ȉ ‡…–‹‘͵ͳƒ†ƒ–‡•–Šƒ––Š‡–‹‡Ž‹‹–ˆ‘”‹••—‡‘ˆ‹˜‘‹…‡‹•–Šƒ––Š‡‹˜‘‹…‡—•–„‡‹••—‡†‡‹–Š‡”„‡ˆ‘”‡
–Š‡’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡ǡ‘”™‹–Š‹͵Ͳ†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡ȋͶͷ†ƒ›•ˆ‘” …‘’ƒ‹‡•
Ƭ •ȌǤ
684 Lesson 13 Ȉ EP-TL

Ȉ ‡…–‹‘ͳͷ‘ˆ–Š‡
…–ǡʹͲͳ͹™Š‡”‡ƒ†‹…‘Œ—…–‹‘™‹–Š‡–‡”‹ƒ–‹‘‘ˆƒŽ—‡‘ˆ—’’Ž›‘ˆ–Š‡

”—Ž‡•ǡ•–ƒ–‡•–Šƒ––Š‡˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•—’’Ž›—†‡”
‹•–Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡Ǥ
Ȉ Š‡ –‡” Dz’‡”•‘dz ƒŽ•‘ ‹…Ž—†‡• Ž‡‰ƒŽ ’‡”•‘• ƒ† ’‡”•‘• ™Š‘ ƒ”‡ ƒ••‘…‹ƒ–‡† ‹ –Š‡ „—•‹‡•• ‘ˆ ‘‡
ƒ‘–Š‡”‹–Šƒ–‘‡‹•–Š‡•‘Ž‡ƒ‰‡–‘”•‘Ž‡†‹•–”‹„—–‘”‘”•‘Ž‡…‘…‡••‹‘ƒ‹”‡ǡŠ‘™•‘‡˜‡”†‡•…”‹„‡†ǡ‘ˆ
–Š‡‘–Š‡”ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡”‡Žƒ–‡†Ǥ

TEST YOURSELF

(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
Multiple Choice Questions (MCQs)
ͳǤ ‘•—Ž–ƒ–•ǡ”‡‰‹•–‡”‡†ƒ–‡ŽŠ‹’”‘˜‹†‡•
–”ƒ‹‹‰–‘‡’Ž‘›‡‡•‘ˆƒƒŒƬ‘Ǥƒ–‘‹†ƒǡ––ƒ”
”ƒ†‡•ŠǤƒƒŒƬ‘Ǥ‹•—”‡‰‹•–‡”‡†—†‡”
…–Ǥ–Š‹•…ƒ•‡ǡ™Š‹…Š‹•–Š‡’Žƒ…‡‘ˆ•—’’Ž›ǫ
ƒȌ ––ƒ””ƒ†‡•Š
„Ȍ ‡ŽŠ‹
…Ȍ ›‘ˆ–Š‡„‘˜‡
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋƒȌ
ʹǤ Š‹…Š•‡…–‹‘‘ˆ
…–ʹͲͳ͹†‡ƒŽ•™‹–Š‹‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ǫ
ƒȌ ‡…–‹‘ͳͳ
„Ȍ ‡…–‹‘ͳʹ
…Ȍ ‡…–‹‘ͳͷ
†Ȍ ‡…–‹‘͹
•™‡”ǣȋ„Ȍ
͵Ǥ Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‹•…‘•‹†‡”‡†ƒ•‹–‡”Ǧ–ƒ–‡—’’Ž›ǫ
ƒȌ —’’Ž‹‡•”‡…‡‹˜‡†ˆ”‘—‹–‹‘‹†ƒ–‘‘‡•–‹…ƒ”‹ˆˆ”‡ƒ
„Ȍ —’’Ž‹‡•ƒ†‡–‘†‡˜‡Ž‘’‡”‹ƒ†Žƒˆ”‘‡”ƒŽƒ
…Ȍ
‘‘†•‹’‘”–‡†ˆ”‘ ”ƒ…‡
†Ȍ ŽŽ‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ†Ȍ
ͶǤ ”ǤŠƒ‹”›ƒŠƒ˜‹‰ƒ”‡‰‹•–‡”‡†’Žƒ…‡‘ˆ„—•‹‡••‹ ƒ‹’—”ǡ’Žƒ…‡†ƒ‘”†‡”–‘–†Ǥ‹‡™‡ŽŠ‹ǡˆ‘”
†‡Ž‹˜‡”‹‰ƒ’ƒ”…‡Ž–‘”Ǥ—…›™Š‘‹•ƒ–ƒ’—”ǤŠƒ–™‹ŽŽ„‡–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹–Š‡’”‡•‡–…ƒ•‡ǫ
ƒȌ ƒ‹’—”
„Ȍ ‡™‡ŽŠ‹
…Ȍ ƒ’—”
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋƒȌ
Lesson 13 Ȉ Concept of Time, Value and Place of Taxable Supply 685

ͷǤ Šƒ–™‹ŽŽ„‡–Š‡˜ƒŽ—‡‘ˆ‰‘‘†•ǡ‹ˆ…‘•‹†‡”ƒ–‹‘’ƒ‹†‹•‘–™Š‘ŽŽ›‹‘‡›ƒ†‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ
•—…Š‰‘‘†•ƒ”‡ƒŽ•‘‘™ǫ
ƒȌ …–—ƒŽ˜ƒŽ—‡’ƒ‹†‹‘‡›
„Ȍ ’‡ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š‰‘‘†•
…Ȍ ͻͲΨ‘ˆ‘’‡ƒ”‡–˜ƒŽ—‡‘ˆ•—…Š‰‘‘†•
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ„Ȍ

LIST OF FURTHER READINGS

Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒšǡƒ™•ǡ‘…‡’–•ƒ†’ƒ…–ƒŽ›•‹•ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽƬƒŒ‡‡˜
ƒŽŠ‘–”ƒ
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›
Ȉ  …‘’Ž‡–‡ ‰—‹†‡ –‘
‘‘†• Ƭ ‡”˜‹…‡• ƒš ‡ƒ†› ‡…‘‡” ‹  Ƭ  ‘”ƒ–Ǧ Ž‘‘•„—”› Ȃ ”Ǥ ƒŒ‹˜
‰ƒ”™ƒŽƬƒŒ‡‡˜ƒŽŠ‘–”ƒ
Ȉ –—†‡–•ƒ›ƒŽ•‘˜‹•‹–DzŠ––’ǣȀȀ…„‹…Ǥ‰‘˜Ǥ‹Ȁdzˆ‘””‡‰—Žƒ”—’†ƒ–‡•‘
Žƒ™Ǥ
686 Lesson 13 Ȉ EP-TL
 Input Tax Credit and Computation
Lesson 14 of GST Liability
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ 
Ȉ ‘…‡’–‘ˆ
Ȉ 
Ȉ Ž‘…‡†”‡†‹–• Ȉ ’’‘”–‹‘‡–‘ˆ”‡†‹–ƒ†Ž‘…‡†”‡†‹–•
Ȉ ’—–ƒš Ȉ
‘‘†••‡––‘ ‘„‘”‡”
Ȉ ‘„‘”‡”
Ȉ ‹•–”‹„—–‹‘‘ˆ„›

Ȉ ‘’—–ƒ–‹‘‘ˆ
ƒ†ƒ––‡”•‹…‹†‡–ƒŽ–Š‡”‡–‘

Lesson Outline
Ȉ –”‘†—…–‹‘‘ˆ’—–ƒš”‡†‹–
Ȉ ‡‰—Žƒ–‘”› ”ƒ‡™‘”
Ȉ ’’‘”–‹‘‡–‘ˆ”‡†‹–ƒ†Ž‘…‡†”‡†‹–•
Ȉ
‘‘†••‡––‘ ‘„‘”‡”
Ȉ ’—–‡”˜‹…‡‹•–”‹„—–‘”
Ȉ ‘’—–ƒ–‹‘‘ˆ
‹ƒ„‹Ž‹–›
Ȉ 
Ȉ

Ȉ 
 688 Lesson 14 Ȉ EP-TL

Regulatory Framework
‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹

Section Deals with

‡…–‹‘ʹȋ͸ʹȌ ’—–ƒš
‡…–‹‘ʹȋ͸͵Ȍ ’—–ƒš”‡†‹–
‡…–‹‘ʹȋ͸ͳȌ ’—–‡”˜‹…‡‹•–”‹„—–‘”
‡…–‹‘ʹȋ͸ͺȌ ‘„‘”
‡…–‹‘ͳ͸ Ž‹‰‹„‹Ž‹–›ƒ†‘†‹–‹‘•ˆ‘”–ƒ‹‰
‡…–‹‘ͳ͹ ’’‘”–‹‘‡–‘ˆ”‡†‹–ƒ†Ž‘…‡†”‡†‹–•
‡…–‹‘ͳͺ ˜ƒ‹Žƒ„‹Ž‹–›‘ˆ”‡†‹–‹•’‡…‹ƒŽ…‹”…—•–ƒ…‡•
‡…–‹‘ͳͻ ƒ‹‰’—–ƒš”‡†‹–‹”‡•’‡…–‘ˆ’—–•ƒ†ƒ’‹–ƒŽ
‘‘†••‡–ˆ‘” ‘„‘”
‡…–‹‘ʹͲ ƒ‡”‘ˆ†‹•–”‹„—–‹‘‘ˆ…”‡†‹–„›’—–‡”˜‹…‡‹•–”‹„—–‘”
‡…–‹‘ʹͳ ƒ‡”‘ˆ”‡…‘˜‡”›‘ˆ…”‡†‹–†‹•–”‹„—–‡†‹‡š…‡••
‡…–‹‘͵ͻ —”‹•Š‹‰‘ˆ‡–—”•
‡…–‹‘Ͷͳ Žƒ‹‘ˆ‹’—––ƒš…”‡†‹–ƒ†’”‘˜‹•‹‘ƒŽƒ……‡’–ƒ…‡–Š‡”‡‘ˆ
‡…–‹‘Ͷͻ ƒ›‡–‘ˆ–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ƒ†‘–Š‡”ƒ‘—–•
‡…–‹‘Ͷͻ –‹Ž‹•ƒ–‹‘‘ˆ‹’—––ƒš…”‡†‹–•—„Œ‡…––‘…‡”–ƒ‹…‘†‹–‹‘•
‡…–‹‘Ͷͻ ”†‡”‘ˆ—–‹Ž‹•ƒ–‹‘‘ˆ‹’—––ƒš…”‡†‹–

INTRODUCTION OF INPUT TAX CREDIT

ƒš‡•’ƒ‹†‘‹™ƒ”†•—’’Ž›‘ˆ‹’—–•ǡ…ƒ’‹–ƒŽ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ”‡…ƒŽŽ‡†‹’—––ƒš‡•ǤŠ‡•‡ƒ›„‡–‡‰”ƒ–‡†

ǡ‡–”ƒŽ
ǡ–ƒ–‡
‘”‹‘‡””‹–‘”›
Ǥƒš‡•’ƒ‹†—†‡””‡˜‡”•‡…Šƒ”‰‡‡…Šƒ‹•ƒ”‡ƒŽ•‘‹’—––ƒš‡•Ǥ
Š‡…”‡†‹–‘ˆ–Š‡ƒ„‘˜‡–ƒš‡•‹•…ƒŽŽ‡†‹’—––ƒš…”‡†‹–ǡ–Šƒ–‹•ǡ–Š‡–ƒš‡•’ƒ‹†‘‹’—–•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡ƒ•ƒ•‡–‘ˆˆ
ƒ‰ƒ‹•––Š‡–ƒš‡•’ƒ›ƒ„Ž‡‘‘—–™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•Ǥ

…–ǡʹͲͳ͹…‘–ƒ‹•–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘’—–ƒš”‡†‹–ȋȌǡ‹–•ƒ˜ƒ‹Ž‡–ǡ—–‹Ž‹œƒ–‹‘ƒ†…‘†‹–‹‘•
ƒ†”‡•–”‹…–‹‘•ƒ––ƒ…Š‡†–Š‡”‡™‹–ŠǤ
‡ϐ‹‹–‹‘•ǣ

Section 2(52) “Input”‡ƒ•ƒ›‰‘‘†•‘–Š‡”–Šƒ…ƒ’‹–ƒŽ‰‘‘†•—•‡†‘”‹–‡†‡†–‘„‡—•‡†„›ƒ•—’’Ž‹‡”‹–Š‡

…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǥ

Section 2(62) “input tax”‹”‡Žƒ–‹‘–‘ƒ”‡‰‹•–‡”‡†’‡”•‘ǡ‡ƒ•–Š‡‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒš‘”

‹‘‡””‹–‘”›–ƒš…Šƒ”‰‡†‘ƒ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†‡–‘Š‹ƒ†‹…Ž—†‡•Ȃ
ȋƒȌ –Š‡‹–‡‰”ƒ–‡†‰‘‘†•ƒ†•‡”˜‹…‡•–ƒš…Šƒ”‰‡†‘‹’‘”–‘ˆ‰‘‘†•Ǣ
ȋ„Ȍ –Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘•ȋ͵Ȍƒ†ȋͶȌ‘ˆ•‡…–‹‘ͻǢ
ȋ…Ȍ –Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘•ȋ͵Ȍƒ†ȋͶȌ‘ˆ•‡…–‹‘ͷ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†
‡”˜‹…‡•ƒš…–Ǣ
ȋ†Ȍ –Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘•ȋ͵Ȍƒ†ȋͶȌ‘ˆ•‡…–‹‘ͻ‘ˆ–Š‡”‡•’‡…–‹˜‡–ƒ–‡
‘‘†•
ƒ†‡”˜‹…‡•ƒš…–Ǣ‘”
ȋ‡Ȍ –Š‡–ƒš’ƒ›ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘•ȋ͵Ȍƒ†ȋͶȌ‘ˆ•‡…–‹‘͹‘ˆ–Š‡‹‘‡””‹–‘”›
‘‘†•
ƒ†‡”˜‹…‡•ƒš…–ǡ„—–does not‹…Ž—†‡–Š‡–ƒš’ƒ‹†—†‡”–Š‡…‘’‘•‹–‹‘Ž‡˜›Ǣ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 689

Section 2(63) “input tax credit”‡ƒ•–Š‡…”‡†‹–‘ˆ‹’—––ƒšǢ

’—–ƒš”‡†‹–ȋȌ‹•…‘•‹†‡”‡†ƒ•ƒ…‘”‡”•–‘‡‘ˆ
Ǥ–Š‡’”‡˜‹‘—•–ƒš”‡‰‹‡ǡ–Š‡”‡™ƒ•‘Ǧƒ˜ƒ‹Žƒ„‹Ž‹–›
‘ˆ…”‡†‹–ƒ–˜ƒ”‹‘—•’‘‹–•‹•—’’Ž›…Šƒ‹ǡŽ‡ƒ†‹‰–‘ƒ…ƒ•…ƒ†‹‰‡ˆˆ‡…–‘ˆ–ƒšǡ‹Ǥ‡Ǥǡ–ƒš‘–ƒšƒ†–Š‡”‡ˆ‘”‡‹…”‡ƒ•‹‰
–Š‡…‘•–‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ǤŠ‹•ϐŽƒ™Šƒ•„‡‡”‡‘˜‡†—†‡”
ƒ†ƒ•‡ƒŽ‡••ϐŽ‘™‘ˆ…”‡†‹––Š”‘—‰Š‘—––Š‡
˜ƒŽ—‡…Šƒ‹‹•–Š‡”‡ˆ‘”‡ƒ˜ƒ‹Žƒ„Ž‡…‘•‡“—‡–Ž›†‘‹‰ƒ™ƒ›™‹–Š–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–‘ˆ–ƒš‡•Ǥ
‘ƒ˜ƒ‹Ž–Š‡„‡‡ϐ‹–‘ˆǡ‹–‹•”‡“—‹”‡†–Šƒ––Š‡’‡”•‘ƒ˜ƒ‹Ž‹‰•—…Š„‡‡ϐ‹–‹•”‡‰‹•–‡”‡†—†‡”
Ǥ—”‡‰‹•–‡”‡†
’‡”•‘‹•‘–‡Ž‹‰‹„Ž‡–‘–ƒ‡–Š‡„‡‡ϐ‹–‘ˆǤ‡…–‹‘ͳͷͷǡ‘ˆ–Š‡
…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ–™Š‡”‡ƒ›’‡”•‘
…Žƒ‹•–Šƒ–Š‡‹•‡Ž‹‰‹„Ž‡ˆ‘”‹’—––ƒš…”‡†‹–—†‡”–Š‹•…–ǡ–Š‡„—”†‡‘ˆ’”‘˜‹‰•—…Š…Žƒ‹•ŠƒŽŽŽ‹‡‘•—…Š’‡”•‘Ǥ
‡…–‹‘ʹȋͳͻȌDzƒ’‹–ƒŽ‰‘‘†•dz‡ƒ•‰‘‘†•ǡ–Š‡˜ƒŽ—‡‘ˆ™Š‹…Š‹•…ƒ’‹–ƒŽ‹•‡†‹–Š‡„‘‘•‘ˆƒ……‘—–•‘ˆ–Š‡’‡”•‘
…Žƒ‹‹‰–Š‡…”‡†‹–ƒ†™Š‹…Šƒ”‡—•‡†‘”‹–‡†‡†–‘„‡—•‡†‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǥ
Section 2(53Ȍ Dz’—– •‡”˜‹…‡dz ‡ƒ• ƒ› •‡”˜‹…‡ —•‡† ‘” ‹–‡†‡† –‘ „‡ —•‡† „› ƒ •—’’Ž‹‡” ‹ –Š‡ …‘—”•‡ ‘”
ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǣ
‡…–‹‘ʹȋͺʹȌ Dz—–’—– –ƒšdz ‹”‡Žƒ–‹‘ –‘ƒ–ƒšƒ„Ž‡’‡”•‘ǡ‡ƒ•–Š‡
…Šƒ”‰‡ƒ„Ž‡ —†‡”–Š‡…–‘–ƒšƒ„Ž‡
•—’’Ž›‘ˆ‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•„›Š‹‘”Š‹•ƒ‰‡–ƒ†‡š…Ž—†‡•–ƒš’ƒ›ƒ„Ž‡„›Š‹‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǥ
Section 49(5) ‘ˆ–Š‡
…–ǡʹͲͳ͹’”‘˜‹†‡•ˆ‘”—–‹Ž‹œƒ–‹‘‘ˆ‹Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ˆ‘”’ƒ›‡–‘ˆ
Ǥ

Eligibility and Conditions for taking Input Tax Credit [Section 16]
Eligibility:ȏ‡‰‹•–”ƒ–‹‘—†‡”
ƒ†•ƒ‰‡ˆ‘”—•‹‡••—”’‘•‡‹•ƒ†ƒ–‘”›Ȑ
(1) ˜‡”›registered person•ŠƒŽŽǡ
Ȉ —„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†ƒ†ǡ‹–Š‡ƒ‡”ǡƒ••’‡…‹ϐ‹‡†‹
•‡…–‹‘Ͷͻǡ
Ȉ ‡‡–‹–Ž‡†–‘–ƒ‡…”‡†‹–‘ˆ‹’—––ƒš…Šƒ”‰‡†‘ǡ
Ȉ ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–‘Š‹ǡ

Ȉ Š‹…Šƒ”‡used or intended to be used in the course or furtherance of his businessǡƒ†

Ȉ Š‡•ƒ‹†ƒ‘—–•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‘ˆ•—…Š’‡”•‘Ǥ

Conditions for Taking ITC

(2) ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‹••‡…–‹‘ǡ‘”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ„‡‡–‹–Ž‡†–‘–Š‡…”‡†‹–‘ˆƒ›
‹’—––ƒš‹”‡•’‡…–‘ˆƒ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–‘Š‹—Ž‡••ǡ
‘••‡••‹‘‘ˆƒš˜‘‹…‡‘”†‡„‹–‘–‡‘”‘–Š‡”†‘…—‡–•
ȋƒȌ Š‡‹•‹’‘••‡••‹‘‘ˆƒ–ƒš‹˜‘‹…‡‘”†‡„‹–‘–‡‹••—‡†„›ƒ•—’’Ž‹‡””‡‰‹•–‡”‡†—†‡”–Š‹•…–ǡ‘”•—…Š
‘–Š‡”tax paying documents ƒ•ƒ›„‡’”‡•…”‹„‡†Ǣ
…ƒ„‡ƒ˜ƒ‹Ž‡†‘–Š‡„ƒ•‹•‘ˆƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰†‘…—‡–•ǣ
‹Ȍ ˜‘‹…‡‹••—‡†„›–Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•Ǣ
‹Ȍ ˜‘‹…‡‹••—‡†„›–Š‡”‡…‹’‹‡–”‡…‡‹˜‹‰‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•ˆ”‘—”‡‰‹•–‡”‡†•—’’Ž‹‡”ƒŽ‘‰
™‹–Š’”‘‘ˆ‘ˆ’ƒ›‡–‘ˆ–ƒšǡ‹…ƒ•‡‘ˆ”‡˜‡”•‡…Šƒ”‰‡Ǣ
‹‹‹Ȍ ‡„‹–‘–‡‹••—‡†„›–Š‡•—’’Ž‹‡”Ǣ
‹˜Ȍ ‹ŽŽ‘ˆ‡–”›‘”•‹‹Žƒ”†‘…—‡–’”‡•…”‹„‡†—†‡”–Š‡—•–‘•…–ǡͳͻ͸ʹǢ
˜Ȍ ‡˜‹•‡†‹˜‘‹…‡Ǣ
˜‹Ȍ ‘…—‡–‹••—‡†„›–Š‡‹’—–•‡”˜‹…‡†‹•–”‹„—–‘”Ǥ
 690 Lesson 14 Ȉ EP-TL

‘–‡–‘ˆ‘…—‡–ǣ
Š‡†‘…—‡–•‘–Š‡„ƒ•‹•‘ˆ™Š‹…Š‹•„‡‹‰–ƒ‡•Š‘—Ž†…‘–ƒ‹ƒ–Ž‡ƒ•––Š‡ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ǣ
Ȉ ‘—–‘ˆ–ƒš…Šƒ”‰‡†Ǣ
Ȉ ‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǣ
Ȉ ‘–ƒŽ˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•Ǣ
Ȉ
‘ˆ–Š‡•—’’Ž‹‡”ƒ†”‡…‹’‹‡–Ǣ
Ȉ Žƒ…‡‘ˆ•—’’Ž›‹…ƒ•‡‘ˆ‹–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ
•’‡”•‡…–‹‘ͳ͸ȋʹȌȋaaȌ–Š‡†‡–ƒ‹Ž•‘ˆ–Š‡‹˜‘‹…‡‘”†‡„‹–‘–‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋaȌŠƒ•„‡‡ˆ—”‹•Š‡†„›–Š‡
•—’’Ž‹‡”‹–Š‡•–ƒ–‡‡–‘ˆ‘—–™ƒ”†•—’’Ž‹‡•ƒ†•—…Š†‡–ƒ‹Ž•Šƒ˜‡„‡‡…‘—‹…ƒ–‡†–‘–Š‡”‡…‹’‹‡–‘ˆ•—…Š
‹˜‘‹…‡‘”†‡„‹–‘–‡‹–Š‡ƒ‡”•’‡…‹ϐ‹‡†—†‡”•‡…–‹‘͵͹Ǥ
‘–‘„‡–ƒ‡‘–ƒš’ƒ‹†–‘™ƒ”†•†‡ƒ†‹˜‘Ž˜‹‰ˆ”ƒ—†ǡ™‹ŽŽˆ—Ž‹•”‡’”‡•‡–ƒ–‹‘‘”•—’’”‡••‹‘‘ˆˆƒ…–•
ȏ—Ž‡͵͸ȋ͵ȌȐ

Restriction on ITC on invoices/debit notes not uploaded by supplier in his GSTR-1

[Rule 36 ȋͶȌ”‡ƒ†™‹–Š…‹”…—Žƒ”‘Ǥͳʹ͵ȀͶʹȀʹͲͳͻ
†ƒ–‡†ͳͳǤͳͳǤʹͲͳͻȐǣ
Ȉ Š‡ …‘†‹–‹‘• ƒ† ‡Ž‹‰‹„‹Ž‹–› ˆ‘” –Š‡  –Šƒ– ƒ› „‡ ƒ˜ƒ‹Ž‡† „› –Š‡ ”‡…‹’‹‡– ‹• ‰‘˜‡”‡† ƒ• ’‡” –Š‡
’”‘˜‹•‹‘•‘ˆŠƒ’–‡”‘ˆ–Š‡
…–ƒ†–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”ǤŠ‹•„‡‹‰ƒ‡™’”‘˜‹•‹‘ǡ–Š‡
”‡•–”‹…–‹‘ ‹• ‘– ‹’‘•‡† –Š”‘—‰Š –Š‡ …‘‘ ’‘”–ƒŽ ƒ† ‹– ‹• –Š‡ ”‡•’‘•‹„‹Ž‹–› ‘ˆ –Š‡ –ƒš’ƒ›‡” –Šƒ–
…”‡†‹–‹•ƒ˜ƒ‹Ž‡†‹–‡”•‘ˆ–Š‡•ƒ‹†”—Ž‡ƒ†–Š‡”‡ˆ‘”‡ǡ–Š‡ƒ˜ƒ‹Ž‡–‘ˆ”‡•–”‹…–‡†…”‡†‹–‹–‡”•‘ˆ•—„Ǧ
”—Ž‡ȋͶȌ‘ˆ”—Ž‡͵͸‘ˆ
—Ž‡••ŠƒŽŽ„‡†‘‡‘•‡ŽˆǦƒ••‡••‡–„ƒ•‹•„›–Š‡–ƒš’ƒ›‡”•Ǥƒ”‹‘—•‹••—‡•
”‡Žƒ–‹‰–‘‹’Ž‡‡–ƒ–‹‘‘ˆ–Š‡•ƒ‹†•—„Ǧ”—Ž‡ƒ†–Š‡…Žƒ”‹ϐ‹…ƒ–‹‘‘‡ƒ…Š‘ˆ–Š‡•‡’‘‹–•‹•ƒ•—†‡”ǣǦ

S. Issues Žƒ”‹ϐ‹…ƒ–‹‘
No.
ͳǤ Šƒ–ƒ”‡–Š‡‹˜‘‹…‡•Ȁ†‡„‹–‘–‡• Š‡ ”‡•–”‹…–‹‘ ‘ˆ ƒ˜ƒ‹Ž‡– ‘ˆ  ‹• ‹’‘•‡† ‘Ž›
‘™Š‹…Š–Š‡”‡•–”‹…–‹‘—†‡””—Ž‡ ‹ ”‡•’‡…– ‘ˆ –Š‘•‡ ‹˜‘‹…‡• Ȁ †‡„‹– ‘–‡•ǡ †‡–ƒ‹Ž• ‘ˆ
͵͸ȋͶȌ‘ˆ–Š‡
—Ž‡••ŠƒŽŽƒ’’Ž›ǫ ™Š‹…Š ƒ”‡ ”‡“—‹”‡† –‘ „‡ —’Ž‘ƒ†‡† „› –Š‡ •—’’Ž‹‡”•
—†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ͵͹ ƒ† ™Š‹…Š Šƒ˜‡
‘– „‡‡ —’Ž‘ƒ†‡†Ǥ Š‡”‡ˆ‘”‡ǡ –ƒš’ƒ›‡”• ƒ› ƒ˜ƒ‹Ž
ˆ—ŽŽ‹”‡•’‡…–‘ˆ
’ƒ‹†‘‹’‘”–ǡ†‘…—‡–•
‹••—‡†—†‡”ǡ…”‡†‹–”‡…‡‹˜‡†ˆ”‘‡–…Ǥ™Š‹…Š
ƒ”‡‘—–•‹†‡–Š‡ƒ„‹–‘ˆ•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵͹ǡ
ʹǤ Š‡–Š‡”–Š‡•ƒ‹†”‡•–”‹…–‹‘‹•–‘
„‡…ƒŽ…—Žƒ–‡†•—’’Ž‹‡”™‹•‡‘”‘
…‘•‘Ž‹†ƒ–‡†„ƒ•‹•ǫ
’”‘˜‹†‡†–Šƒ–‡Ž‹‰‹„‹Ž‹–›…‘†‹–‹‘•ˆ‘”ƒ˜ƒ‹Ž‡–‘ˆ
ƒ”‡‡–‹”‡•’‡…–‘ˆ–Š‡•ƒ‡ǤŠ‡”‡•–”‹…–‹‘‘ˆ”—Ž‡
͵͸ȋͶȌ ™‹ŽŽ „‡ ƒ’’Ž‹…ƒ„Ž‡ ‘Ž› ‘ –Š‡ ‹˜‘‹…‡• Ȁ †‡„‹–
‘–‡•‘™Š‹…Š…”‡†‹–‹•ƒ˜ƒ‹Ž‡†ƒˆ–‡”ͲͻǤͳͲǤʹͲͳͻǤ
Š‡ ”‡•–”‹…–‹‘ ‹’‘•‡† ‹• ‘– •—’’Ž‹‡” ™‹•‡Ǥ Š‡
…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡—†‡”•—„Ǧ”—Ž‡ȋͶȌ‘ˆ”—Ž‡͵͸‹•Ž‹‡†
–‘ –‘–ƒŽ ‡Ž‹‰‹„Ž‡ …”‡†‹– ˆ”‘ ƒŽŽ •—’’Ž‹‡”• ƒ‰ƒ‹•– ƒŽŽ
•—’’Ž‹‡• ™Š‘•‡ †‡–ƒ‹Ž• Šƒ˜‡ „‡‡ —’Ž‘ƒ†‡† „› –Š‡
•—’’Ž‹‡”•Ǥ —”–Š‡”ǡ–Š‡…ƒŽ…—Žƒ–‹‘™‘—Ž† „‡„ƒ•‡†‘
‘Ž› –Š‘•‡ ‹˜‘‹…‡• ™Š‹…Š ƒ”‡ ‘–Š‡”™‹•‡ ‡Ž‹‰‹„Ž‡ ˆ‘”
Ǥ ……‘”†‹‰Ž›ǡ –Š‘•‡ ‹˜‘‹…‡• ‘ ™Š‹…Š  ‹• ‘–
ƒ˜ƒ‹Žƒ„Ž‡ —†‡” ƒ› ‘ˆ –Š‡ ’”‘˜‹•‹‘ ȋ•ƒ› —†‡” •—„Ǧ
•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ͳ͹Ȍ™‘—Ž†‘–„‡…‘•‹†‡”‡†ˆ‘”
…ƒŽ…—Žƒ–‹‰ͳͲ’‡”…‡–‘ˆ–Š‡‡Ž‹‰‹„Ž‡…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability
͵Ǥ 
Ǧʹ „‡‹‰ ƒ †›ƒ‹… Š‡ƒ‘—–‘ˆ‹’—––ƒš…”‡†‹–‹”‡•’‡…–‘ˆ–Š‡‹˜‘‹…‡•
†‘…—‡–ǡ™Šƒ–™‘—Ž†„‡–Š‡ƒ‘—–
‘ˆ‹’—––ƒš…”‡†‹––Šƒ–‹•ƒ†‹••‹„Ž‡
–‘ –Š‡ –ƒš’ƒ›‡”• ˆ‘” ƒ ’ƒ”–‹…—Žƒ” –ƒš
’‡”‹‘† ‹ ”‡•’‡…– ‘ˆ ‹˜‘‹…‡• Ȁ †‡„‹–
‘–‡• ™Š‘•‡ †‡–ƒ‹Ž• Šƒ˜‡ ‘– „‡‡
—’Ž‘ƒ†‡†„›–Š‡•—’’Ž‹‡”•ǫ
Ǧͳ‘ˆ–Š‡•—’’Ž‹‡”•ˆ‘”–Š‡•ƒ‹†–ƒš’‡”‹‘†Ǥ
ʹƒ•ƒ˜ƒ‹Žƒ„Ž‡‘–Š‡†—‡
Ǧͳ—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ
691
Ȁ †‡„‹– ‘–‡• ™Š‘•‡ †‡–ƒ‹Ž• Šƒ˜‡ ‘– „‡‡ —’Ž‘ƒ†‡†
„› –Š‡ •—’’Ž‹‡”• •ŠƒŽŽ ‘– ‡š…‡‡† ͷΨ ‘ˆ –Š‡ ‡Ž‹‰‹„Ž‡
‹’—––ƒš…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡”‡…‹’‹‡–‹”‡•’‡…–‘ˆ
‹˜‘‹…‡•‘”†‡„‹–‘–‡•–Š‡†‡–ƒ‹Ž•‘ˆ™Š‹…ŠŠƒ˜‡„‡‡
—’Ž‘ƒ†‡† „› –Š‡ •—’’Ž‹‡”• —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ
•‡…–‹‘͵͹ƒ•‘–Š‡†—‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ–Š‡”‡–—”•‹

Š‡–ƒš’ƒ›‡”ƒ›Šƒ˜‡–‘ƒ•…‡”–ƒ‹–Š‡•ƒ‡ˆ”‘Š‹•
ƒ—–‘’‘’—Žƒ–‡† 
†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ 
•‡…–‹‘͵͹Ǥ

ͶǤ ‘™—…Šƒ”‡‰‹•–‡”‡†–ƒš’ƒ›‡” —„Ǧ”—Ž‡ ȋͶȌ ‘ˆ ”—Ž‡ ͵͸ ’”‡•…”‹„‡• –Šƒ– –Š‡  –‘ „‡
…ƒ ƒ˜ƒ‹Ž ‹ Š‹• 
Ǧ͵ ‹ ƒ ƒ˜ƒ‹Ž‡† „› ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ‹ ”‡•’‡…– ‘ˆ ‹˜‘‹…‡•
‘–Š‹…ƒ•‡–Š‡†‡–ƒ‹Ž•‘ˆ•‘‡‘ˆ ‘” †‡„‹– ‘–‡•ǡ –Š‡ †‡–ƒ‹Ž• ‘ˆ ™Š‹…Š Šƒ˜‡ ‘– „‡‡
–Š‡‹˜‘‹…‡•Šƒ˜‡‘–„‡‡—’Ž‘ƒ†‡† —’Ž‘ƒ†‡† „› –Š‡ •—’’Ž‹‡”• —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ
„› –Š‡ •—’’Ž‹‡”• —†‡” •—„Ǧ•‡…–‹‘ •‡…–‹‘͵͹ǡ•ŠƒŽŽ‘–‡š…‡‡†ͷ’‡”…‡–Ǥ‘ˆ–Š‡‡Ž‹‰‹„Ž‡
ȋͳȌ‘ˆ•‡…–‹‘͵͹Ǥ …”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ‹˜‘‹…‡•‘”†‡„‹–‘–‡•–Š‡
†‡–ƒ‹Ž•‘ˆ™Š‹…ŠŠƒ˜‡„‡‡—’Ž‘ƒ†‡†„›–Š‡•—’’Ž‹‡”•
—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵͹Ǥ
ͷǤ Š‡…ƒ„ƒŽƒ…‡„‡…Žƒ‹‡†‹ Š‡„ƒŽƒ…‡ƒ›„‡…Žƒ‹‡†„›–Š‡–ƒš’ƒ›‡”‹ƒ›
…ƒ•‡ƒ˜ƒ‹Ž‡–‘ˆ‹•”‡•–”‹…–‡†ƒ• ‘ˆ–Š‡•—……‡‡†‹‰‘–Š•’”‘˜‹†‡††‡–ƒ‹Ž•‘ˆ”‡“—‹•‹–‡
’‡”–Š‡’”‘˜‹•‹‘•‘ˆ”—Ž‡͵͸ȋͶȌǫ ‹˜‘‹…‡• ƒ”‡ —’Ž‘ƒ†‡† „› –Š‡ •—’’Ž‹‡”•Ǥ ‡ …ƒ …Žƒ‹
’”‘’‘”–‹‘ƒ–‡ƒ•ƒ†™Š‡†‡–ƒ‹Ž•‘ˆ•‘‡‹˜‘‹…‡•
ƒ”‡—’Ž‘ƒ†‡†„›–Š‡•—’’Ž‹‡”•’”‘˜‹†‡†–Šƒ–…”‡†‹–‘
‹˜‘‹…‡•ǡ–Š‡†‡–ƒ‹Ž•‘ˆ™Š‹…Šƒ”‡‘–—’Ž‘ƒ†‡†ȋ—†‡”
•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵͹Ȍ”‡ƒ‹•—†‡”ͷ’‡”…‡–
‘ˆ–Š‡‡Ž‹‰‹„Ž‡‹’—––ƒš…”‡†‹–ǡ–Š‡†‡–ƒ‹Ž•‘ˆ™Š‹…Šƒ”‡
—’Ž‘ƒ†‡†„›–Š‡•—’’Ž‹‡”•Ǥ

Š‡†‘…—‡–•‘–Š‡„ƒ•‹•‘ˆ™Š‹…Š‹•„‡‹‰–ƒ‡•Š‘—Ž†Šƒ˜‡ƒŽŽ–Š‡”‡Ž‡˜ƒ–’ƒ”–‹…—Žƒ”•ƒ•’”‡•…”‹„‡†‹”—Ž‡
Ͷ͸‘ˆ–Š‡
—Ž‡•Ǥ
ȋ„Ȍ ‡…‡‹’–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǣŠ‡”‡‰‹•–‡”‡†’‡”•‘—•–Šƒ˜‡”‡…‡‹˜‡†–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ

 ‘„‡‡Ž‹‰‹„Ž‡ˆ‘”Š‡—•–„‡‹’‘••‡••‹‘‘ˆƒ–ƒš‹˜‘‹…‡‘”†‡„‹–‘–‡‹••—‡†„›ƒ•—’’Ž‹‡””‡‰‹•–‡”‡†
—†‡”–Š‹•…–ǡ‘”•—…Š‘–Š‡”–ƒš’ƒ›‹‰†‘…—‡–•ƒ†”‡…‡‹˜‡†–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ

 Dz‹ŽŽ–‘Š‹’–‘–”ƒ•ƒ…–‹‘dz

 Š‡”‡‰‹•–‡”‡†’‡”•‘‡‡†‘–”‡…‡‹˜‡–Š‡‰‘‘†•Š‹•‡ŽˆǤ–‹••—ˆϐ‹…‹‡–‡˜‡‹ˆ–Š‡‰‘‘†•ƒ”‡†‡Ž‹˜‡”‡†–‘
•‘‡‘–Š‡”’‡”•‘‘Š‹•†‹”‡…–‹‘Ǥ

Similarly, services may also be provided to a third party by the •‡”˜‹…‡’”‘˜‹†‡”ȋ•—’’Ž‹‡”Ȍ‘–Š‡†‹”‡…–‹‘

‘ˆ –Š‡ •‡”˜‹…‡ ”‡…‹’‹‡– ȋ”‡‰‹•–‡”‡† ’‡”•‘ȌǤ  –Š‹• …ƒ•‡ ƒŽ•‘ǡ –Š‘—‰Š –Š‡ •‡”˜‹…‡ ”‡…‹’‹‡– ȋ”‡‰‹•–‡”‡†
’‡”•‘Ȍ†‘‡•‘–”‡…‡‹˜‡–Š‡•‡”˜‹…‡ǡ„›˜‹”–—‡‘ˆ‡š’Žƒƒ–‹‘–‘•‡…–‹‘ͳ͸ȋʹȌȋ„Ȍ‹–‹•†‡‡‡†–Šƒ––Š‡
”‡‰‹•–‡”‡†’‡”•‘ȋ•‡”˜‹…‡”‡…‹’‹‡–ȌŠƒ•”‡…‡‹˜‡†–Š‡•‡”˜‹…‡Ǥ

 ‘–Š‡”™‘”†•ǡ•‡”˜‹…‡’”‘˜‹†‡†–‘ƒ›’‡”•‘‘–Š‡†‹”‡…–‹‘‘ˆƒ†‘ƒ……‘—–‘ˆ–Š‡”‡‰‹•–‡”‡†’‡”•‘ǡ
‹• †‡‡‡† –‘ Šƒ˜‡ „‡‡ ”‡…‡‹˜‡† „› •—…Š ”‡‰‹•–‡”‡† ’‡”•‘Ǥ ‘ǡ  ™‹ŽŽ „‡ ƒ˜ƒ‹Žƒ„Ž‡ –‘ –Š‡ ”‡‰‹•–‡”‡†
’‡”•‘ǡ‘™Š‘•‡†‹”‡…–‹‘–Š‡•‡”˜‹…‡•ƒ”‡’”‘˜‹†‡†–‘ƒ–Š‹”†’‡”•‘Ǥ
 692 Lesson 14 Ȉ EP-TL

ExplanationǤ Ȃ ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• …Žƒ—•‡ǡ ‹– •ŠƒŽŽ „‡
†‡‡‡†–Šƒ––Š‡”‡‰‹•–‡”‡†’‡”•‘Šƒ•”‡…‡‹˜‡†–Š‡‰‘‘†•‘”ǡ ITC in case of goods received in
ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ•‡”˜‹…‡•Ȃ Ž‘–•‘”‹•–ƒŽ‡–•ǣ
ȋ‹Ȍ ™Š‡”‡ –Š‡ ‰‘‘†• ƒ”‡ †‡Ž‹˜‡”‡† „› –Š‡ •—’’Ž‹‡” –‘ ƒ Provided that where the goods
”‡…‹’‹‡–‘”ƒ›‘–Š‡”’‡”•‘‘–Š‡†‹”‡…–‹‘‘ˆ•—…Š against an invoice
”‡‰‹•–‡”‡† ’‡”•‘ǡ ™Š‡–Š‡” ƒ…–‹‰ ƒ• ƒ ƒ‰‡– ‘” x are received in lots or
‘–Š‡”™‹•‡ǡ „‡ˆ‘”‡ ‘” †—”‹‰ ‘˜‡‡– ‘ˆ ‰‘‘†•ǡ instalments,
‡‹–Š‡” „› ™ƒ› ‘ˆ –”ƒ•ˆ‡” ‘ˆ †‘…—‡–• ‘ˆ –‹–Ž‡ –‘
‰‘‘†•‘”‘–Š‡”™‹•‡Ǣ x the registered person shall
be entitled to take credit
ȋ‹‹Ȍ ™Š‡”‡ –Š‡ •‡”˜‹…‡• ƒ”‡ ’”‘˜‹†‡† „› –Š‡ •—’’Ž‹‡” –‘ upon receipt of the last lot or
ƒ›’‡”•‘‘–Š‡†‹”‡…–‹‘‘ˆƒ†‘ƒ……‘—–‘ˆ•—…Š instalment.
”‡‰‹•–‡”‡†’‡”•‘Ǥ

ȋ…Ȍ ƒš—•–„‡ƒ…–—ƒŽŽ›’ƒ‹†–‘‰‘˜‡”‡–ǣ•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘Ͷͳ‘”Ͷ͵ǡ–Š‡–ƒš…Šƒ”‰‡†‹
”‡•’‡…–‘ˆ•—…Š•—’’Ž›Šƒ•„‡‡ƒ…–—ƒŽŽ›’ƒ‹†–‘–Š‡
‘˜‡”‡–ǡ‡‹–Š‡”‹…ƒ•Š‘”–Š”‘—‰Š—–‹Ž‹œƒ–‹‘‘ˆ
‹’—––ƒš…”‡†‹–ƒ†‹••‹„Ž‡‹”‡•’‡…–‘ˆ–Š‡•ƒ‹†•—’’Ž›Ǣƒ†

ȋ†Ȍ —”‹•Š‹‰‘ˆ”‡–—”ǣŠ‡Šƒ•ˆ—”‹•Š‡†–Š‡”‡–—”—†‡”•‡…–‹‘͵ͻǣ

Failure to pay tax within stipulated time

”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡ƒ”‡…‹’‹‡–ǣ
Ȉ ˆƒ‹Ž• –‘ ’ƒ› –‘ –Š‡ •—’’Ž‹‡” ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Šǡ ‘–Š‡” –Šƒ –Š‡ •—’’Ž‹‡• ‘ ™Š‹…Š –ƒš ‹•
’ƒ›ƒ„Ž‡‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•ǡ

Ȉ –Š‡ƒ‘—––‘™ƒ”†•–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›ƒŽ‘‰™‹–Š–ƒš’ƒ›ƒ„Ž‡–Š‡”‡‘ǡ

Ȉ within a period of one hundred and eighty daysˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡„›–Š‡•—’’Ž‹‡”ǡ

Ȉ ƒ ƒ‘—– ‡“—ƒŽ –‘ –Š‡ ‹’—– –ƒš …”‡†‹– ƒ˜ƒ‹Ž‡† „› –Š‡ ”‡…‹’‹‡– •ŠƒŽŽ „‡ ƒ††‡† –‘ Š‹• ‘—–’—– –ƒš
Ž‹ƒ„‹Ž‹–›ǡƒŽ‘‰™‹–Š‹–‡”‡•––Š‡”‡‘ǡ‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ–‡”‡•–™‹ŽŽ„‡’ƒ‹†̷
ͳͺΨˆ”‘–Š‡†ƒ–‡‘ˆƒ˜ƒ‹Ž‹‰…”‡†‹––‹ŽŽ–Š‡†ƒ–‡™Š‡–Š‡ƒ‘—–ƒ††‡†–‘–Š‡‘—–’—––ƒšŽ‹ƒ„‹Ž‹–›‹•
’ƒ‹†Ǥ

”‘˜‹†‡†ƒŽ•‘–Šƒ––Š‡”‡…‹’‹‡–•ŠƒŽŽ„‡‡–‹–Ž‡†–‘ƒ˜ƒ‹Ž‘ˆ–Š‡…”‡†‹–‘ˆ‹’—––ƒš‘’ƒ›‡–ƒ†‡„›Š‹‘ˆ–Š‡
ƒ‘—– –‘™ƒ”†• –Š‡ ˜ƒŽ—‡ ‘ˆ •—’’Ž› ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Š ƒŽ‘‰ ™‹–Š –ƒš ’ƒ›ƒ„Ž‡ –Š‡”‡‘Ǥ  …ƒ•‡ ’ƒ”–Ǧ
’ƒ›‡–Šƒ•„‡‡ƒ†‡ǡ’”‘’‘”–‹‘ƒ–‡…”‡†‹–™‘—Ž†„‡ƒŽŽ‘™‡†Ǥ
Exceptions

Š‹•…‘†‹–‹‘‘ˆ’ƒ›‡–‘ˆ˜ƒŽ—‡‘ˆ•—’’Ž›’Ž—•–ƒš™‹–Š‹ͳͺͲ†ƒ›•†‘‡•‘–ƒ’’Ž›‹–Š‡ˆ‘ŽŽ‘™‹‰•‹–—ƒ–‹‘•ǣ
ȋƒȌ —’’Ž‹‡•‘™Š‹…Š–ƒš‹•’ƒ›ƒ„Ž‡—†‡””‡˜‡”•‡…Šƒ”‰‡

ȋ„Ȍ ‡‡‡†•—’’Ž‹‡•™‹–Š‘—–…‘•‹†‡”ƒ–‹‘

ȋ…Ȍ ††‹–‹‘•ƒ†‡–‘–Š‡˜ƒŽ—‡‘ˆ•—’’Ž‹‡•‘ƒ……‘—–‘ˆ•—’’Ž‹‡”ǯ•Ž‹ƒ„‹Ž‹–›ǡ‹”‡Žƒ–‹‘–‘•—…Š•—’’Ž‹‡•ǡ„‡‹‰
‹…—””‡†„›–Š‡”‡…‹’‹‡–‘ˆ–Š‡•—’’Ž›

†‡”•‹–—ƒ–‹‘•‰‹˜‡‹’‘‹–•ȋ„ȌƬȋ…Ȍǡ–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‹•†‡‡‡†–‘Šƒ˜‡„‡‡’ƒ‹†Ǥ

Depreciation claimed on Tax Component, ITC not allowed

(3) Š‡”‡–Š‡”‡‰‹•–‡”‡†’‡”•‘Šƒ•…Žƒ‹‡††‡’”‡…‹ƒ–‹‘‘–Š‡–ƒš…‘’‘‡–‘ˆ–Š‡…‘•–‘ˆ…ƒ’‹–ƒŽ‰‘‘†•ƒ†
’Žƒ– ƒ† ƒ…Š‹‡”› —†‡” –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡ …‘‡Ǧ–ƒš …–ǡ ͳͻ͸ͳǡ –Š‡ ‹’—– –ƒš …”‡†‹– ‘ –Š‡ •ƒ‹† –ƒš
…‘’‘‡–•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†ǤŠ—•ǡ‹”‡•’‡…–‘ˆ–Š‡–ƒš’ƒ‹†‘•—…Š‹–‡•ǡ†—ƒŽ„‡‡ϐ‹–…ƒ‘–„‡…Žƒ‹‡†
—†‡”…‘‡Ǧ–ƒš…–ǡͳͻ͸ͳƒ†
Žƒ™••‹—Ž–ƒ‡‘—•Ž›Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 693

Due date to claim ITC

(4) ”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‘–„‡‡–‹–Ž‡†–‘–ƒ‡‹’—––ƒš…”‡†‹–‹”‡•’‡…–‘ˆƒ›‹˜‘‹…‡‘”†‡„‹–‘–‡ˆ‘”•—’’Ž›
‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒˆ–‡”
Ȉ –Š‡†—‡†ƒ–‡‘ˆˆ—”‹•Š‹‰‘ˆ–Š‡”‡–—”—†‡”•‡…–‹‘͵ͻˆ‘”–Š‡‘–Š‘ˆ‡’–‡„‡”ˆ‘ŽŽ‘™‹‰–Š‡‡†‘ˆ
ϐ‹ƒ…‹ƒŽ›‡ƒ”–‘™Š‹…Š•—…Š‹˜‘‹…‡‘”‹˜‘‹…‡”‡Žƒ–‹‰–‘•—…Š†‡„‹–‘–‡’‡”–ƒ‹•‘”

Ȉ †ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ–Š‡”‡Ž‡˜ƒ–ƒ—ƒŽ”‡–—”

™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the
return under section 39 for the month of September, 2020 till the due date of furnishing of the return under the said
section for the month of March, 2021 in respect of any invoice or invoice relating to such debit note for supply of goods
‘”•‡”˜‹…‡•‘”„‘–Šƒ†‡†—”‹‰–Š‡ϔ‹ƒ…‹ƒŽ›‡ƒ”͸ͶͷͿǦ͸Ͷǡ–Š‡†‡–ƒ‹Ž•‘ˆ™Š‹…ŠŠƒ˜‡„‡‡—’Ž‘ƒ†‡†„›–Š‡•—’’Ž‹‡”
—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘͹ͽ–‹ŽŽ–Š‡†—‡†ƒ–‡ˆ‘”ˆ—”‹•Š‹‰–Š‡†‡–ƒ‹Ž•—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•ƒ‹†•‡…–‹‘ˆ‘”
the month of March, 2021 .
 š…‡’–‹‘ǣ

 Š‡–‹‡Ž‹‹–—Ȁ•ͳ͸ȋͶȌ†‘‡•‘–ƒ’’Ž›–‘…Žƒ‹ˆ‘””‡Ǧƒ˜ƒ‹Ž‹‰‘ˆ…”‡†‹––Šƒ–Šƒ†„‡‡”‡˜‡”•‡†‡ƒ”Ž‹‡”Ǥ

 ˜‡”›”‡‰‹•–‡”‡†’‡”•‘‹•‡Ž‹‰‹„Ž‡–‘–ƒ‡…”‡†‹–‘ˆ
…Šƒ”‰‡†–‘Š‹ˆ‘”Š‹•‹™ƒ”†•—’’Ž›‘ˆ‰‘‘†•Ȁ
•‡”˜‹…‡•‹ˆŠ‡—•‡••—…Š•—’’Ž‹‡•‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆŠ‹•„—•‹‡••Ǥ

 —…Š…”‡†‹–‹•…ƒŽŽ‡†‹’—––ƒš…”‡†‹–ƒ†–Š‡•ƒ‡‹•–‘„‡…”‡†‹–‡†–‘Š‹•‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”Ǥ

 ƒ›‡– ‘ˆ –ƒš ƒ† ϐ‹Ž‹‰ ‘ˆ ”‡–—” ‹• ƒŽ•‘ ‡…‡••ƒ”› –‘ …Žƒ‹ Ǥ ‘™‡˜‡”ǡ ‡…–‹‘ Ͷͳ ƒŽŽ‘™•  ‘
’”‘˜‹•‹‘ƒŽ„ƒ•‹•Ǥ

 ‘–‡ǣƒϐ‹ƒ…‹ƒŽ›‡ƒ”ǡ–Š‡”‡–—”ˆ‘”‡’–‡„‡”‹•–‘„‡ϐ‹Ž‡†„›ʹͲ–Š‘ˆ…–‘„‡”—†‡”‡…–‹‘͵ͻ‘ˆ

…–ǡʹͲͳ͹Ǥ

Illustration 1
”Ǥ‘”†‡”•͵ͲͲͲͲ–‘‡•‘ˆ‰‘‘†•™Š‹…Šƒ”‡–‘„‡†‡Ž‹˜‡”‡†„›–Š‡•—’’Ž‹‡”˜‹ƒ͵Ž‘–•‘ˆͳͲͲͲͲ‡ƒ…ŠǤŠ‡Ž‘–•
ƒ”‡•‡–—†‡”ƒ•‹‰Ž‡‹˜‘‹…‡™‹–Š–Š‡ϐ‹”•–Ž‘–ƒ†–Š‡’ƒ›‡–‹•ƒ†‡„›–Š‡”‡…‹’‹‡–ˆ‘”ƒŽ—‡‘ˆ—’’Ž›
’Ž—•
ƒ†–Š‡•—’’Ž‹‡”Šƒ•ƒŽ•‘†‡’‘•‹–‡†–Š‡–ƒš™‹–Š–Š‡
‘˜‡”‡–Ǥ

Š‡͵Ž‘–•ƒ”‡•—’’Ž‹‡†‹ƒ›ǡ —‡ƒ† —Ž›ʹͲʹͲǤŠ‡‹•ƒ˜ƒ‹Žƒ„Ž‡–‘”Ǥ‘Ž›ƒˆ–‡”–Š‡”‡…‡‹’–‘ˆ–Š‡

͵”†Ž‘–ǤŠ‡”‡ƒ•‘‹••‹’Ž‡ǡ‘‡‘ˆ–Š‡…‘†‹–‹‘•–‘ƒ˜ƒ‹Ž‹•–Š‡”‡…‡‹’–‘ˆ‰‘‘†•™Š‹…Š‹•…‘’Ž‡–‡†‘Ž›
ƒˆ–‡”–Š‡Žƒ•–Ž‘–‹•†‡Ž‹˜‡”‡†Ǥ

Illustration 2

‘”ƒ˜‘‹…‡†ƒ–‡†͵ͳ•– —Ž›ǡʹͲʹͲǡ–Š‡•ƒ‡’‡”–ƒ‹•–‘–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲʹͲǦʹͳǤ

‡…‡–Š‡”‡–—”ˆ‘”‘–Š‘ˆ‡’–‡„‡”ˆ‘ŽŽ‘™‹‰–Š‡‡†‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”–‘™Š‹…Š•—…Š‹˜‘‹…‡”‡Žƒ–‡•
‹•†—‡‘ʹͲ–Š…–‘„‡”ǡʹͲʹͳǤ
‡–ǯ••ƒ›–Šƒ––Š‡ƒ—ƒŽ”‡–—”‹•ϐ‹Ž‡†‘ͳʹ–Š—‰—•–ǡʹͲʹͳǤ
Š‡–Š‡”‡ˆ‘”‡‡‡†•–‘„‡…Žƒ‹‡†™‹–Š‹ͳʹ–Š—‰—•–ǡʹͲʹͳǡ™Š‹…Š‹•–Š‡‡ƒ”Ž‹‡”‘ˆ–Š‡–™‘†ƒ–‡•Ǥ
 694 Lesson 14 Ȉ EP-TL

ƒ–…Š‡†…”‡†‹–…ƒ’’‡†ƒ–ͷΨǣ

—Ž‡͵͸ȋͶȌŠƒ•„‡‡‹•‡”–‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘ͶͻȀʹͲͳͻǦ†ƒ–‡†ͻ…–‘„‡”ǡʹͲͳͻƒ†‹–ƒ’’Ž‹‡•–‘ƒŽŽ”‡–—”•ϐ‹Ž‡†
ƒˆ–‡”ͻ…–‘„‡”ǡʹͲͳͻǡ–Šƒ–‹•ǡ–‘‡’–‡„‡””‡–—”•ƒ•™‡ŽŽǤŠ‹••—„Ǧ”—Ž‡•–ƒ–‡•–Šƒ–ȋ‹Ȍ‡Ž‹‰‹„Ž‡…”‡†‹–•ƒ’’‡ƒ”‹‰
‹
 ʹ ™‹ŽŽ „‡ ƒŽŽ‘™‡† ȋ–‘–ƒŽ …”‡†‹–• ‹—• ‹‡Ž‹‰‹„Ž‡ …”‡†‹–• —†‡” ͳ͹ȋʹȌǡ ͳ͹ȋͷȌǡ ‡–…ǤȌ ƒ† ȋ‹‹Ȍ ƒ††‹–‹‘ƒŽ
—ƒ–…Š‡†ad hoc…”‡†‹–‘ˆʹͲ’‡”…‡–ȋ‘™ͷΨȌ‘ˆ–Š‡‡Ž‹‰‹„Ž‡…”‡†‹–•Ǥ
š’‡”–• ‡š’Žƒ‹ –Š‡ …‘…‡” ‘ˆ –”ƒ†‡ ‹• ‘– ‡–‹”‡Ž› ™”‘‰ „—– ‡“—ƒŽŽ› ˆ‘”…‡ˆ—Ž ƒ”‡ ƒ”‰—‡–• ‹ •—’’‘”– ‘ˆ –Š‡

‘˜‡”‡–ǯ• ’‘•‹–‹‘ ‹ ˜‹‡™ ‘ˆ –Š‡ †‹ˆˆ‡”‡…‡• ‹ –Š‡ Žƒ‰—ƒ‰‡ ‘ˆ  …– ƒ† 
 …–Ǥ ‘™‡˜‡”ǡ ˆ‘” –Š‡
’”‡•‡–ǡͳͲͷ’‡”…‡–‘ˆ‡Ž‹‰‹„Ž‡…”‡†‹–•ƒ’’‡ƒ”‹‰‹
ʹƒˆ–‡”‡š…Ž—†‹‰‹‡Ž‹‰‹„Ž‡…”‡†‹–•™‹ŽŽ„‡ƒŽŽ‘™‡†Ǥ
†ƒ›…Žƒ‹‘ˆŠ‹‰Š‡”ƒ‘—–‘ˆ…”‡†‹–…‘—Ž†…‘‡‹ˆ‘”•…”—–‹›—†‡”•‡…–‹‘͸ͳ™‹–Š’‘••‹„‹Ž‹–›‘ˆ†‡ƒ†–‘
”‡˜‡”•‡•—…Š‡š…‡••ƒ‘—–•Ǥ
GST Council in its 38th Meeting on 18th December, 2019 has further restricted ITC for invoices which have
not been uploaded by suppliers to 10%( now 5%) of eligible credit available in respect of invoices or debit
‘–‡•”‡ϐŽ‡…–‡†‹ 
ǦʹǤ
‡•–”‹…–‹‰ …”‡†‹– –‘ ‘Ž› –Š‘•‡ ƒ‘—–• ƒ’’‡ƒ”‹‰ ‹
 ʹ ‹•  ‹ –Š‡ ‘Ž› ™ƒ› –‘ ‡•–ƒ„Ž‹•Š …‘†‹–‹‘
’”‡…‡†‡–‹•‡…–‹‘ͳ͸ȋʹȌȋ…Ȍƒ†ƒ„•‡…‡ˆ”‘
ʹ‹•ƒ‹†‹…ƒ–‘”‘ˆ‘Ǧ’ƒ›‡–‘ˆ–ƒš„›”‡•’‡…–‹˜‡
•—’’Ž‹‡”Ǥ—‡•–‹‘”‡ƒ‹•™Š‡–Š‡”•—…Šƒ”—Ž‡‹•ƒƒ……‡’–ƒ„Ž‡•‘Ž—–‹‘ǡ’‡”Šƒ’•‘–Ǥ—––Š‡
‘˜‡”‡–•‡‡•
†‡–‡”‹‡† „—– ‹–• ‡ˆ‘”…‡‡– •Š‘—Ž† ‘– „‡ ƒ‰ƒ‹•– „‘ƒ ϐ‹†‡ …Žƒ‹• ™‹–Š‘—– ƒŽŽ‘™‹‰ ˆ‘” –Š‡ •–ƒ–—–‘”› –‹‡
—†‡”•‡…–‹‘͵͹–‘’ƒ••„‡ˆ‘”‡–ƒ‹‰”‡–—”•ˆ‘”•…”—–‹›Ǥ

Apportionment of credit and blocked credits [Section 17]

‘‘†•ƒ†‡”˜‹…‡•ƒšƒ‹•ƒ–’”‘˜‹†‹‰•‡ƒŽ‡••ϐŽ‘™‘ˆ…”‡†‹––Š”‘—‰Š‘—––Š‡•—’’Ž›…Šƒ‹Ǥ
‘™‡˜‡”ǡ„‡Ž‘™‹•ƒŽ‹•–‘ˆˆ‡™•‹–—ƒ–‹‘•ƒ•‡–‹‘‡†‹•‡…–‹‘ͳ͹‘ˆ‡–”ƒŽ
…–ǡʹͲͳ͹™Š‡”‡‹’—––ƒš…”‡†‹–
™‹ŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡ǣ
Apportionment of ITC [Sub-sections (1) and (2) of section 17 read with rule 42 and rule 43 of CGST Rules]
ȋͳȌŠ‡”‡–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ”‡—•‡†„›–Š‡”‡‰‹•–‡”‡†’‡”•‘partly for the purpose of any business
and partly for other purposesǡ –Š‡ ƒ‘—– ‘ˆ …”‡†‹– •ŠƒŽŽ „‡ ”‡•–”‹…–‡† –‘ •‘ —…Š ‘ˆ –Š‡ ‹’—– –ƒš ƒ• ‹•
ƒ––”‹„—–ƒ„Ž‡–‘–Š‡’—”’‘•‡•‘ˆŠ‹•„—•‹‡••Ǥ
Meaning of Business
•’‡”‡…ʹȋͳ͹Ȍ‘ˆ
…–ǡʹͲͳ͹Dz—•‹‡••dz‹…Ž—†‡•ǣ

ƒǤ ƒ›–”ƒ†‡ǡ…‘‡”…‡ǡƒ—ˆƒ…–—”‡ǡ’”‘ˆ‡••‹‘ǡ˜‘…ƒ–‹‘ǡƒ†˜‡–—”‡ǡ™ƒ‰‡”‘”ƒ›‘–Š‡”•‹‹Žƒ”ƒ…–‹˜‹–›ǡ
™Š‡–Š‡”‘”‘–‹–‹•ˆ‘”ƒ’‡…—‹ƒ”›„‡‡ˆ‹–Ǣ
‹Ǥ ƒ’”‘˜‹†‹‰ˆ‹ƒ…‹ƒŽ•‡”˜‹…‡•–‘‹–•…—•–‘‡”•Ǥ
‹‹Ǥ ‘’ƒ›ƒ—ˆƒ…–—”‹‰–—”„‹‡•ˆ‘”‡š’‘”–ƒ†Ž‘…ƒŽ•ƒŽ‡Ǥ
‹‹‹Ǥ ”‘˜‹•‹‘‘ˆ•‡”˜‹…‡•–‘…Ž‹‡–•—…Šƒ•ƒ—†‹–ƒ†…‘•—Ž–ƒ…›Ǥ
‹˜Ǥ ƒ”–‹•–‡ƒ”‹‰‹…‘‡ˆ‘”†ƒ…‡’‡”ˆ‘”ƒ…‡•Ǥ
˜Ǥ
ƒ„Ž‹‰‹ƒ‡”„›Ǥ
˜‹Ǥ Šƒ”‹–ƒ„Ž‡Š‘•’‹–ƒŽ’”‘˜‹†‹‰ˆ”‡‡‡†‹…‹‡•–‘ˆƒ”‡”•Ǥ

‘–‡ǣ‡…—‹ƒ”›„‡‡ˆ‹–‡ƒ•‘‡–ƒ”›„‡‡ˆ‹–•Ǥ–ǯ•ƒ„‡‡ˆ‹–‘”…‘’‡•ƒ–‹‘–Šƒ–‹•“—ƒ–‹ˆ‹ƒ„Ž‡‹‘‡–ƒ”›
–‡”•ǤŠ‡’”‹ƒ”›•‹‰‹ϐ‹…ƒ…‡‘ˆ–Š‹•–‡”‹•‡…‘‘‹…‰ƒ‹„›–Š‡‡–‹–›Ǥ

„Ǥ ƒ›ƒ…–‹˜‹–›‘”–”ƒ•ƒ…–‹‘‹…‘‡…–‹‘™‹–Š‘”‹…‹†‡–ƒŽ‘”ƒ…‹ŽŽƒ”›–‘ȋƒȌƒ„‘˜‡Ǣ
‹Ǥ ”‘˜‹•‹‘•‘ˆŽ‘…‡”•ˆ‘””‡––‘…—•–‘‡”•‹–Š‡ƒ’”‡‹•‡•ƒ•ƒ•Šƒ˜‡Š‹‰Š•‡…—”‹–›Ǥ
‹‹Ǥ —”„‹‡ƒ—ˆƒ…–—”‹‰…‘’ƒ›Ž‡––‹‰‘—–Ƭˆƒ…‹Ž‹–‹‡•–‘”‡•‡ƒ”…Š—‹–•–‘™ƒ”†•‹’”‘˜‡‡–
‘ˆ’”‘†—…–ƒ†‡š’ƒ•‹‘Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 695

c. ƒ›ƒ…–‹˜‹–›‘”–”ƒ•ƒ…–‹‘‹–Š‡ƒ–—”‡‘ˆȋƒȌƒ„‘˜‡ǡ™Š‡–Š‡”‘”‘––Š‡”‡‹•˜‘Ž—‡ǡˆ”‡“—‡…›ǡ…‘–‹—‹–›
‘””‡‰—Žƒ”‹–›‘ˆ•—…Š–”ƒ•ƒ…–‹‘Ǣ
‹Ǥ ”Ǥ‰ƒ„Ž‡•ˆ‘”–Š‡ϐ‹”•––‹‡‹‡”„›ƒ†™‹•Ǥ
‹‹Ǥ ƒŽ‡‘ˆƒ‰‘‡•„›ƒˆƒ”‡”†—”‹‰•—‡”‹ˆŽ‡ƒƒ”‡–Ǥ
‹‹‹Ǥ ƒŽ‡‘ˆ‘Ž†‡™•’ƒ’‡”•„›ƒˆ‹”Ǥ

†Ǥ •—’’Ž›‘”ƒ…“—‹•‹–‹‘‘ˆ‰‘‘†•‹…Ž—†‹‰…ƒ’‹–ƒŽƒ••‡–•ƒ†•‡”˜‹…‡•‹…‘‡…–‹‘™‹–Š…‘‡…‡‡–‘”
…Ž‘•—”‡‘ˆ„—•‹‡••Ǣ
‹Ǥ ‡”˜‹…‡•”‡†‡”‡†„›ƒ‘’ƒ›‡…”‡–ƒ”›–‘‹…‘”’‘”ƒ–‡ƒ‘’ƒ›Ǥ
‹‹Ǥ ‡ƒŽ‡•–ƒ–‡ƒ‰‡–Š‡Ž’‹‰‘’ƒ›–‘ƒ…“—‹”‡ˆƒ…–‘”›‰‘†‘™ˆ‘”ƒ…‘‹••‹‘Ǥ

‡Ǥ ’”‘˜‹•‹‘„›ƒ…Ž—„ǡƒ••‘…‹ƒ–‹‘ǡ•‘…‹‡–›ǡ‘”ƒ›•—…Š„‘†›ȋˆ‘”ƒ•—„•…”‹’–‹‘‘”ƒ›‘–Š‡”…‘•‹†‡”ƒ–‹‘Ȍ
‘ˆ–Š‡ˆƒ…‹Ž‹–‹‡•‘”„‡‡ˆ‹–•–‘‹–•‡„‡”•ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǣ
‹Ǥ ‘‘’‡”ƒ–‹˜‡•‘…‹‡–›ˆ‘”‡†ˆ‘”Ž‡†‹‰Ž‘ƒ•–‘ˆƒ”‡”•Ǥ
‹‹Ǥ ‡…”‡ƒ–‹‘…Ž—„ˆ‘”‡†„›ƒ’ƒ”–‡–‘™‡”•Ǥ

ˆǤ ƒ†‹••‹‘ǡˆ‘”ƒ…‘•‹†‡”ƒ–‹‘ǡ‘ˆ’‡”•‘•–‘ƒ›’”‡‹•‡•Ǣƒ†
‹Ǥ •‡ŽŽ‹‰‘˜‹‡–‹…‡–•Ǥ
‹‹Ǥ –”› Ȁ †‹••‹‘ ˆ‡‡ …‘ŽŽ‡…–‡† „› ”– ‡šŠ‹„‹–‹‘• –‘ †‹•’Žƒ› ƒ”–‹ˆƒ…–•ǡ ’ƒ‹–‹‰• ƒ† •…—Ž’–—”‡•
ƒ†‡„›ƒ”–‹•–•Ǥ
‹‹‹Ǥ —•‡—•”—„›
‘˜‡”‡–•ˆ‘”ƒ‡–”›ˆ‡‡–‘’—„Ž‹…–‘†‹•’Žƒ›‘„Œ‡…–•‘ˆŠ‹•–‘”‹…ƒŽ•‹‰‹ˆ‹…ƒ…‡Ǥ

‰Ǥ •‡”˜‹…‡••—’’Ž‹‡†„›ƒ’‡”•‘ƒ•–Š‡Š‘Ž†‡”‘ˆƒ‘ˆˆ‹…‡™Š‹…ŠŠƒ•„‡‡ƒ……‡’–‡†„›Š‹‹–Š‡…‘—”•‡‘”
ˆ—”–Š‡”ƒ…‡‘ˆŠ‹•–”ƒ†‡ǡ’”‘ˆ‡••‹‘‘”˜‘…ƒ–‹‘Ǣ
‹Ǥ ‘•—Ž–ƒ…›•‡”˜‹…‡’”‘˜‹†‡†„›ƒ‘’ƒ› ”‡‰ƒ”†‹‰‡”‰‡”•–‘ƒ‘–Š‡”…‘’ƒ›Ǥ

ŠǤ •‡”˜‹…‡•’”‘˜‹†‡†„›ƒ”ƒ…‡…Ž—„„›™ƒ›‘ˆ–‘–ƒŽ‹•ƒ–‘”‘”ƒŽ‹…‡…‡–‘„‘‘ƒ‡”‹•—…Š…Ž—„Ǣ
‹Ǥ ƒ›ƒ…–‹˜‹–›‘”–”ƒ•ƒ…–‹‘—†‡”–ƒ‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡƒ–ƒ–‡
‘˜‡”‡–‘”ƒ›Ž‘…ƒŽ
ƒ—–Š‘”‹–›‹™Š‹…Š–Š‡›ƒ”‡‡‰ƒ‰‡†ƒ•’—„Ž‹…ƒ—–Š‘”‹–‹‡•Ǣ
ȋ‹ȌǤ …“—‹•‹–‹‘‘ˆŽƒ†ˆ‘”‡–”‘…‘•–”—…–‹‘„›–Š‡–ƒ–‡
‘˜‡”‡–ˆ”‘–Š‡Žƒ†‘™‡”•
ˆ‘”•‘‡…‘’‡•ƒ–‹‘Ǥ
ȋ‹‹ȌǤ
‘˜‡”‡–”—‹‰•‡”˜‹…‡ˆ‘”–Š‡™‡Žˆƒ”‡‘ˆ…‹–‹œ‡•Ǥ

ȋʹȌŠ‡”‡–Š‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ”‡—•‡†„›–Š‡”‡‰‹•–‡”‡†’‡”•‘’ƒ”–Ž›ˆ‘”‡ˆˆ‡…–‹‰taxable supplies
including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and
partly for effecting exempt supplies under the said Actsǡ–Š‡ƒ‘—–‘ˆ…”‡†‹–•ŠƒŽŽ„‡”‡•–”‹…–‡†–‘•‘—…Š
‘ˆ–Š‡‹’—––ƒšƒ•‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡•ƒ‹†–ƒšƒ„Ž‡•—’’Ž‹‡•‹…Ž—†‹‰œ‡”‘Ǧ”ƒ–‡†•—’’Ž‹‡•Ǥ
‡ƒ‹‰‘ˆƒšƒ„Ž‡—’’Ž›ǣ

 •’‡”•‡…–‹‘͸ȋͷͶ;Ȍ‘ˆ
…–Dz–ƒšƒ„Ž‡•—’’Ž›dz‡ƒ•ƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™Š‹…Š‹•
Ž‡˜‹ƒ„Ž‡–‘–ƒš—†‡”–Š‹•…–Ǣ

Meaning of Exempt Supply:

 •’‡”‡…–‹‘ʹȋͺͽȌ‘ˆ
…–Dz‡š‡’–•—’’Ž›dz‡ƒ••—’’Ž›‘ˆƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™Š‹…Š
ƒ––”ƒ…–•nil ”ƒ–‡‘ˆ–ƒš‘”™Š‹…Šƒ›„‡™Š‘ŽŽ›‡š‡’–ˆ”‘–ƒš—†‡”•‡…–‹‘ͳͳǡ‘”—†‡”•‡…–‹‘͸‘ˆ
–Š‡Integrated Goods and Services Tax Actǡƒ†‹…Ž—†‡•‘Ǧ–ƒšƒ„Ž‡•—’’Ž›Ǣ
 696 Lesson 14 Ȉ EP-TL

‡ƒ‹‰‘ˆ‡”‘”ƒ–‡†•—’’Ž›ǣ

 •’‡”•‡…–‹‘ͳ͸ȋͳȌ‘ˆ
…–Dzzero rated supply”‡ƒ•ƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•
or both,namely: –
 ƒȌ‡š’‘”–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ‘”
 „Ȍ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Što a Special Economic Zone developer or a Special Economic
Zone unit.

͵Ǥ Š‡ value of exempt supply —†‡” •—„Ǧ•‡…–‹‘ ȋʹȌ •ŠƒŽŽ „‡ •—…Š ƒ• ƒ› „‡ ’”‡•…”‹„‡†ǡ ƒ† shall include
•—’’Ž‹‡•‘™Š‹…Š–Š‡”‡…‹’‹‡–‹•Ž‹ƒ„Ž‡–‘’ƒ›–ƒš‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•ǡ–”ƒ•ƒ…–‹‘•‹•‡…—”‹–‹‡•ǡ•ƒŽ‡‘ˆ
Žƒ†ƒ†ǡ•—„Œ‡…––‘…Žƒ—•‡ȋ„Ȍ‘ˆ’ƒ”ƒ‰”ƒ’Šͷ‘ˆ…Š‡†—Ž‡ǡ•ƒŽ‡‘ˆ„—‹Ž†‹‰Ǥ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••—„Ǧ•‡…–‹‘ǡ–Š‡‡š’”‡••‹‘‘‘value of exempt supply’’ shall not include
–Š‡˜ƒŽ—‡‘ˆƒ…–‹˜‹–‹‡•‘”–”ƒ•ƒ…–‹‘••’‡…‹ϐ‹‡†‹…Š‡†—Ž‡ǡ‡š…‡’––Š‘•‡•’‡…‹ϐ‹‡†‹’ƒ”ƒ‰”ƒ’Šͷ‘ˆ–Š‡•ƒ‹†
…Š‡†—Ž‡ǡ‹Ǥ‡Ǥǡ•ƒŽ‡‘ˆŽƒ†Ƭ•ƒŽ‡‘ˆ„—‹Ž†‹‰ǤŠ‡”‡ˆ‘”‡ǡ™Š‹Ž‡‹ƒŽŽ‘–Š‡”‹–‡•‘ˆ…Š‡†—Ž‡ǡǤǤǤ™‹ŽŽ‘–„‡
”‡“—‹”‡†–‘„‡”‡˜‡”•‡†Ǥ‘™‡˜‡”ǡ‹…ƒ•‡‘ˆ•ƒŽ‡‘ˆŽƒ†ƒ†„—‹Ž†‹‰ǡǤǤǤ™‹ŽŽ‡‡†–‘„‡”‡˜‡”•‡†Ǥ

ͶǤ  „ƒ‹‰ …‘’ƒ› ‘” ƒ ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘ ‹…Ž—†‹‰ ƒ ‘Ǧ„ƒ‹‰ ϐ‹ƒ…‹ƒŽ …‘’ƒ›ǡ ‡‰ƒ‰‡† ‹
•—’’Ž›‹‰•‡”˜‹…‡•„›™ƒ›‘ˆƒ……‡’–‹‰†‡’‘•‹–•ǡ‡š–‡†‹‰Ž‘ƒ•‘”ƒ†˜ƒ…‡••ŠƒŽŽŠƒ˜‡–Š‡‘’–‹‘–‘‡‹–Š‡”
…‘’Ž›™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌǡ‘”ƒ˜ƒ‹Ž‘ˆǡ‡˜‡”›‘–Šǡƒƒ‘—–‡“—ƒŽ–‘ͷͲΨ‘ˆ–Š‡‡Ž‹‰‹„Ž‡
‹’—––ƒš…”‡†‹–‘‹’—–•ǡ…ƒ’‹–ƒŽ‰‘‘†•ƒ†‹’—–•‡”˜‹…‡•‹–Šƒ–‘–Šƒ†–Š‡”‡•–•ŠƒŽŽŽƒ’•‡ǣ
”‘˜‹†‡†–Šƒ––Š‡‘’–‹‘‘…‡‡š‡”…‹•‡†•ŠƒŽŽ‘–„‡™‹–Š†”ƒ™†—”‹‰–Š‡”‡ƒ‹‹‰’ƒ”–‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ǣ

”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡”‡•–”‹…–‹‘‘ˆͷͲΨ•ŠƒŽŽ‘–ƒ’’Ž›–‘–Š‡–ƒš’ƒ‹†‘•—’’Ž‹‡•ƒ†‡„›‘‡”‡‰‹•–‡”‡†
’‡”•‘–‘ƒ‘–Š‡””‡‰‹•–‡”‡†’‡”•‘Šƒ˜‹‰–Š‡•ƒ‡‡”ƒ‡–……‘—–—„‡”Ǥ

’—–ƒš”‡†‹–‹•ƒ˜ƒ‹Žƒ„Ž‡‘Ž›‘–Š‘•‡‰‘‘†•ƒ†•‡”˜‹…‡•—•‡†ˆ‘”„—•‹‡••Ǥš’‘”–•ƒ†•—’’Ž‹‡•–‘ˆƒŽŽ
—†‡”–Š‡…ƒ–‡‰‘”›‘ˆœ‡”‘Ǧ”ƒ–‡†•—’’Ž‹‡•Ǥ‹•ƒ˜ƒ‹Žƒ„Ž‡‘œ‡”‘”ƒ–‡†•—’’Ž‹‡•ƒ†–ƒšƒ„Ž‡•—’’Ž‹‡•„—–‘–‘
‡š‡’–•—’’Ž‹‡•Ǥ
Note:

ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ”‡—•‡†„›–Š‡ Ȉ–Š‡ƒ‘—–‘ˆ…”‡†‹–•ŠƒŽŽ„‡”‡•–”‹…–‡†–‘•‘—…Š
”‡‰‹•–‡”‡†’‡”•‘’ƒ”–Ž›ˆ‘”–Š‡’—”’‘•‡‘ˆ ‘ˆ–Š‡‹’—––ƒšƒ•‹•ƒ––”‹„—–ƒ„Ž‡–‘–Š‡’—”’‘•‡•
ƒ›„—•‹‡••ƒ†’ƒ”–Ž›ˆ‘”‘–Š‡”’—”’‘•‡• ‘ˆŠ‹•„—•‹‡••

ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Š ƒ”‡ —•‡†  „› –Š‡ ȈŠ‡ƒ‘—–‘ˆ…”‡†‹–•ŠƒŽŽ„‡”‡•–”‹…–‡†–‘
”‡‰‹•–‡”‡†’‡”•‘’ƒ”–Ž› ˆ‘” ‡ˆˆ‡…–‹‰  –ƒšƒ„Ž‡ •‘ —…Š ‘ˆ –Š‡ ‹’—– –ƒš ƒ• ‹• ƒ––”‹„—–ƒ„Ž‡
•—’’Ž‹‡• ‹…Ž—†‹‰ œ‡”‘Ǧ”ƒ–‡† •—’’Ž‹‡• —†‡” –‘ –Š‡ •ƒ‹† –ƒšƒ„Ž‡ •—’’Ž‹‡• ‹…Ž—†‹‰ œ‡”‘
–Š‹• …– ‘ ”—†‡” –Š‡ 
 …– ƒ† ’ƒ”–Ž› ˆ‘” ”ƒ–‡†•—’’Ž‹‡•
‡ˆˆ‡…–‹‰ ‡š‡’– •—’’Ž‹‡• —†‡” –Š‡ •ƒ‹† …–•
‡ˆˆ‡…–‹‰ ‡š‡’– •—’’Ž‹‡• —†‡” –Š‡ •ƒ‹† …–•
‡ˆˆ‡…–‹‰‡š‡’–•—’’Ž‹‡•—†‡”–Š‡•ƒ‹†…–•
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 697

 „ƒ‹‰ ‘’ƒ› ‘” ƒ ϐ‹ƒ…‹ƒŽ ‹•–‹–—–‹‘ ȈŠƒŽŽŠƒ˜‡–Š‡‘’–‹‘–‘‡‹–Š‡”…‘’Ž›™‹–Š

‹…Ž—†‹‰ ƒ ‘Ǧ„ƒ‹‰ ϐ‹ƒ…‹ƒŽ …‘’ƒ›ǡ –Š‡ ’”‘˜‹•‹‘• ‘ˆ ƒ„‘˜‡ …Žƒ—•‡ǡ ‘” ƒ˜ƒ‹Ž ‘ˆǡ
engagedinby way of supplying accepting services every month,an amount equal to 50% of the
deposits, extending loans or advances eligible in puttax credit on inputs, capital goods
and input services in that month and the rest
shall lapse.

Š‡˜ƒŽ—‡‘ˆ‡š‡’–•—’’Ž›•ŠƒŽŽ„‡•—…Šƒ•ƒ›„‡’”‡•…”‹„‡†ǡƒ†•ŠƒŽŽ‹…Ž—†‡•—’’Ž‹‡•‘™Š‹…Š–Š‡”‡…‹’‹‡–
‹• Ž‹ƒ„Ž‡ –‘ ’ƒ› –ƒš ‘ ”‡˜‡”•‡ …Šƒ”‰‡ „ƒ•‹•ǡ –”ƒ•ƒ…–‹‘• ‹ •‡…—”‹–‹‡•ǡ •ƒŽ‡ ‘ˆ Žƒ† ƒ†ǡ •—„Œ‡…– –‘ …Žƒ—•‡ ȋ„Ȍ ‘ˆ
’ƒ”ƒ‰”ƒ’Šͷ‘ˆ…Š‡†—Ž‡ǡ•ƒŽ‡‘ˆ„—‹Ž†‹‰Ǥ
‘‹–ȋ͵Ȍǡ–Š‡‘’–‹‘‘…‡‡š‡”…‹•‡†•ŠƒŽŽ‘–„‡™‹–Š†”ƒ™†—”‹‰–Š‡”‡ƒ‹‹‰’ƒ”–‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥ

‘‹–ȋ͵Ȍǡ–Š‡”‡•–”‹…–‹‘‘ˆͷͲΨ•ŠƒŽŽ‘–ƒ’’Ž›–‘–Š‡–ƒš’ƒ‹†‘•—’’Ž‹‡•ƒ†‡„›‘‡”‡‰‹•–‡”‡†’‡”•‘–‘
ƒ‘–Š‡””‡‰‹•–‡”‡†’‡”•‘Šƒ˜‹‰–Š‡•ƒ‡‡”ƒ‡–……‘—–—„‡”Ǥ

Illustration 3

’—–‹•—•‡†–‘’”‘†—…‡ƒ†•—’’Ž›‘—–’—–™Š‹…Š‹•‡š‡’–Ǥ‘‹•ƒ˜ƒ‹Žƒ„Ž‡‘‹’—–„‡…ƒ—•‡‹–™ƒ•
—•‡†ˆ‘”‡š‡’–•—’’Ž›Ǥ

–Š‡ƒ„‘˜‡‡šƒ’Ž‡‹ˆ–Š‡‘—–’—–‹•‡š’‘”–‡†‘”•—’’Ž‹‡†–‘ƒ—‹–ǡ‹•ƒ˜ƒ‹Žƒ„Ž‡‘’—–

ƒ•–Š‡ ‘—–Ǧ™ƒ”†•—’’Ž›‹•œ‡”‘”ƒ–‡†Ǥ

Blocked Credits [Section 17(5)]

‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳ͸ƒ†•—„•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͺǡ‹’—––ƒš
…”‡†‹–•ŠƒŽŽ‘–„‡ƒ˜ƒ‹Žƒ„Ž‡‹”‡•’‡…–‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǡƒ‡Ž›ǣ
(a) Motor vehicles and other conveyances and related services (insurance, servicing and repair and
maintenance)
‘–‘”˜‡Š‹…Ž‡•ˆ‘”–”ƒ•’‘”–ƒ–‹‘‘ˆ’‡”•‘•Šƒ˜‹‰ƒ’’”‘˜‡†•‡ƒ–‹‰…ƒ’ƒ…‹–›‘ˆ‘–‘”‡–Šƒ–Š‹”–‡‡’‡”•‘•
ȋ‹…Ž—†‹‰–Š‡†”‹˜‡”Ȍǡexcept ™Š‡–Š‡›ƒ”‡—•‡†ˆ‘”ƒ‹‰–Š‡ˆ‘ŽŽ‘™‹‰–ƒšƒ„Ž‡•—’’Ž‹‡•ǡƒ‡Ž›ǣȂ

ȋȌ ˆ—”–Š‡”•—’’Ž›‘ˆ•—…Š‘–‘”˜‡Š‹…Ž‡•Ǣ‘”

ȋȌ –”ƒ•’‘”–ƒ–‹‘‘ˆ’ƒ••‡‰‡”•Ǣ‘”

ȋȌ ‹’ƒ”–‹‰–”ƒ‹‹‰‘†”‹˜‹‰•—…Š‘–‘”˜‡Š‹…Ž‡•Ǣ

ȋƒƒȌ˜‡••‡Ž•ƒ†ƒ‹”…”ƒˆ–except ™Š‡–Š‡›ƒ”‡—•‡†Ȃ
ȋ‹Ȍ ˆ‘”ƒ‹‰–Š‡ˆ‘ŽŽ‘™‹‰–ƒšƒ„Ž‡•—’’Ž‹‡•ǡƒ‡Ž›ǣȂ
ȋȌ ˆ—”–Š‡”•—’’Ž›‘ˆ•—…Š˜‡••‡Ž•‘”ƒ‹”…”ƒˆ–Ǣ‘”
ȋȌ –”ƒ•’‘”–ƒ–‹‘‘ˆ’ƒ••‡‰‡”•Ǣ‘”
ȋȌ ‹’ƒ”–‹‰–”ƒ‹‹‰‘ƒ˜‹‰ƒ–‹‰•—…Š˜‡••‡Ž•Ǣ‘”
ȋȌ ‹’ƒ”–‹‰–”ƒ‹‹‰‘ϐŽ›‹‰•—…Šƒ‹”…”ƒˆ–Ǣ
ȋ‹‹Ȍ ˆ‘”–”ƒ•’‘”–ƒ–‹‘‘ˆ‰‘‘†•Ǣ
 698 Lesson 14 Ȉ EP-TL

ȋƒ„Ȍ–Š‡ˆ‘ŽŽ‘™‹‰•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǣȄ
•‡”˜‹…‡•‘ˆ‰‡‡”ƒŽ‹•—”ƒ…‡ǡ•‡”˜‹…‹‰ǡ”‡’ƒ‹”ƒ†ƒ‹–‡ƒ…‡‹•‘ˆƒ”ƒ•–Š‡›”‡Žƒ–‡–‘‘–‘”˜‡Š‹…Ž‡•ǡ
˜‡••‡Ž•‘”ƒ‹”…”ƒˆ–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌ‘”…Žƒ—•‡ȋƒƒȌǣ
”‘˜‹†‡†–Šƒ––Š‡‹’—––ƒš…”‡†‹–‹”‡•’‡…–‘ˆ•—…Š•‡”˜‹…‡••ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡Ȃ
ȋȌ ™Š‡”‡ –Š‡ ‘–‘” ˜‡Š‹…Ž‡•ǡ ˜‡••‡Ž• ‘” ƒ‹”…”ƒˆ– ”‡ˆ‡””‡† –‘ ‹ …Žƒ—•‡ ȋƒȌ ‘” …Žƒ—•‡ ȋƒƒȌ ƒ”‡ —•‡† ˆ‘” –Š‡
’—”’‘•‡••’‡…‹ϐ‹‡†–Š‡”‡‹Ǣ

ȋȌ ™Š‡”‡”‡…‡‹˜‡†„›ƒ–ƒšƒ„Ž‡’‡”•‘‡‰ƒ‰‡†Ȃ
ȋ‹Ȍ ‹–Š‡ƒ—ˆƒ…–—”‡‘ˆ•—…Š‘–‘”˜‡Š‹…Ž‡•ǡ˜‡••‡Ž•‘”ƒ‹”…”ƒˆ–Ǣ‘”
ȋ‹‹Ȍ ‹–Š‡•—’’Ž›‘ˆ‰‡‡”ƒŽ‹•—”ƒ…‡•‡”˜‹…‡•‹”‡•’‡…–‘ˆ•—…Š‘–‘”˜‡Š‹…Ž‡•ǡ˜‡••‡Ž•‘”ƒ‹”…”ƒˆ–
‹•—”‡†„›Š‹Ǣ

ȋ„Ȍ–Š‡ˆ‘ŽŽ‘™‹‰•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠȂ
Food & beverages, outdoor catering, health services and other services
ȋ‹Ȍ ˆ‘‘† ƒ† „‡˜‡”ƒ‰‡•ǡ ‘—–†‘‘” …ƒ–‡”‹‰ǡ „‡ƒ—–› –”‡ƒ–‡–ǡ Š‡ƒŽ–Š •‡”˜‹…‡•ǡ …‘•‡–‹… ƒ† ’Žƒ•–‹…
•—”‰‡”›ǡŽ‡ƒ•‹‰ǡ”‡–‹‰‘”Š‹”‹‰‘ˆ‘–‘”˜‡Š‹…Ž‡•ǡ˜‡••‡Ž•‘”ƒ‹”…”ƒˆ–”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋƒȌ‘”
…Žƒ—•‡ȋƒƒȌ‡š…‡’–™Š‡—•‡†ˆ‘”–Š‡’—”’‘•‡••’‡…‹ϐ‹‡†–Š‡”‡‹ǡŽ‹ˆ‡‹•—”ƒ…‡ƒ†Š‡ƒŽ–Š
‹•—”ƒ…‡ǣ
 ”‘˜‹†‡†–Šƒ––Š‡‹’—––ƒš…”‡†‹–‹”‡•’‡…–‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡
™Š‡”‡ƒ‹™ƒ”†•—’’Ž›‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‹•—•‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘ˆ‘”ƒ‹‰
ƒ‘—–™ƒ”†–ƒšƒ„Ž‡•—’’Ž›‘ˆ–Š‡•ƒ‡…ƒ–‡‰‘”›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘”ƒ•ƒ‡Ž‡‡–‘ˆƒ
–ƒšƒ„Ž‡…‘’‘•‹–‡‘”‹š‡†•—’’Ž›Ǣ
ȋ‹‹Ȍ ‡„‡”•Š‹’‘ˆƒ…Ž—„ǡŠ‡ƒŽ–Šƒ†ϐ‹–‡••…‡–”‡Ǣƒ†
ȋ‹‹‹Ȍ –”ƒ˜‡Ž„‡‡ϐ‹–•‡š–‡†‡†–‘‡’Ž‘›‡‡•‘˜ƒ…ƒ–‹‘•—…Šƒ•Ž‡ƒ˜‡‘”Š‘‡–”ƒ˜‡Ž…‘…‡••‹‘ǣ

 ”‘˜‹†‡†–Šƒ––Š‡‹’—––ƒš…”‡†‹–‹”‡•’‡…–‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ǡ™Š‡”‡‹–
‹•‘„Ž‹‰ƒ–‘”›ˆ‘”ƒ‡’Ž‘›‡”–‘’”‘˜‹†‡–Š‡•ƒ‡–‘‹–•‡’Ž‘›‡‡•—†‡”ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹
ˆ‘”…‡Ǥ

Works contract services for construction of immovable property [Clause (c) of section 17(5)]
ȋ…Ȍ ™‘”• …‘–”ƒ…– •‡”˜‹…‡• ™Š‡ •—’’Ž‹‡† ˆ‘” …‘•–”—…–‹‘ ‘ˆ ƒ ‹‘˜ƒ„Ž‡ ’”‘’‡”–› (other than plant and
machinery) ‡š…‡’–™Š‡”‡‹–‹•ƒ‹’—–•‡”˜‹…‡ˆ‘”ˆ—”–Š‡”•—’’Ž›‘ˆ™‘”•…‘–”ƒ…–•‡”˜‹…‡Ǣ

Self-construction of immovable property [Clause (d) of section 17(5)]

ȋ†Ȍ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š”‡…‡‹˜‡†„›ƒ–ƒšƒ„Ž‡’‡”•‘ˆ‘”…‘•–”—…–‹‘‘ˆƒ‹‘˜ƒ„Ž‡’”‘’‡”–›(other than
plant or machinery) ‘Š‹•‘™ƒ……‘—–‹…Ž—†‹‰™Š‡•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ”‡—•‡†‹–Š‡…‘—”•‡
‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••Ǥ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ…Žƒ—•‡•ȋ…Ȍƒ†ȋ†Ȍǡ–Š‡‡š’”‡••‹‘Dz…‘•–”—…–‹‘dz‹…Ž—†‡•”‡Ǧ…‘•–”—…–‹‘ǡ
”‡‘˜ƒ–‹‘ǡƒ††‹–‹‘•‘”ƒŽ–‡”ƒ–‹‘•‘””‡’ƒ‹”•ǡ–‘–Š‡‡š–‡–‘ˆ…ƒ’‹–ƒŽ‹œƒ–‹‘ǡ–‘–Š‡•ƒ‹†‹‘˜ƒ„Ž‡’”‘’‡”–›Ǣ
ȋ‡Ȍ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘™Š‹…Š–ƒšŠƒ•„‡‡’ƒ‹†—†‡”•‡…–‹‘ͳͲǢȋ‘’‘•‹–‹‘—’’Ž›…Š‡‡Ȍ
ȋˆȌ ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š”‡…‡‹˜‡†„›ƒ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘‡š…‡’–‘‰‘‘†•‹’‘”–‡†„›Š‹Ǣ
ȋ‰Ȍ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š—•‡†ˆ‘”’‡”•‘ƒŽ…‘•—’–‹‘Ǣ
ȋŠȌ‰‘‘†•Ž‘•–ǡ•–‘Ž‡ǡ†‡•–”‘›‡†ǡ™”‹––‡‘ˆˆ‘”†‹•’‘•‡†‘ˆ„›™ƒ›‘ˆ‰‹ˆ–‘”ˆ”‡‡•ƒ’Ž‡•Ǥ

‘™‡˜‡”ǡ™Š‡”‡–Š‡ƒ…–‹˜‹–›‘ˆ†‹•–”‹„—–‹‘‘ˆ‰‹ˆ–•‘”ˆ”‡‡•ƒ’Ž‡•ˆƒŽŽ•™‹–Š‹–Š‡•…‘’‡‘ˆDz•—’’Ž›dz‘ƒ……‘—–
‘ˆ–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹…Š‡†—Ž‡‘ˆ–Š‡•ƒ‹†…–ǡ–Š‡•—’’Ž‹‡”™‘—Ž†„‡‡Ž‹‰‹„Ž‡–‘ƒ˜ƒ‹Ž–Š‡Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 699

ITC in the hands of the supplier in respect of sales promotional schemes

 ‹”…—Žƒ”‘ǤͿ͸ȀͷͷȀ͸ͶͷͿ
†ƒ–‡†͸;ǤͶ͹Ǥ͸ͶͷͿŠƒ•…Žƒ”‹ϔ‹‡†–Š‡‡–‹–Ž‡‡–‘ˆ‹–Š‡Šƒ†•‘ˆ•—’’Ž‹‡”
in respect of various sales promotional schemes as under :
Ǥ Samples and free gifts
 ƒ’Ž‡• ™Š‹…Š ƒ”‡ •—’’Ž‹‡† ˆ”‡‡ ‘ˆ …‘•–ǡ ™‹–Š‘—– ƒ› …‘•‹†‡”ƒ–‹‘ǡ †‘ ‘– “—ƒŽ‹ˆ› ƒ• Dz•—’’Ž›dz
—†‡”
ǡ‡š…‡’–™Š‡”‡–Š‡ƒ…–‹˜‹–›ˆƒŽŽ•™‹–Š‹–Š‡ƒ„‹–‘ˆ…Š‡†—Ž‡‘ˆ–Š‡
…–Ǥ
  •ŠƒŽŽ ‘– „‡ ƒ˜ƒ‹Žƒ„Ž‡ –‘ –Š‡ •—’’Ž‹‡” ‘ –Š‡ ‹’—–•ǡ ‹’—– •‡”˜‹…‡• ƒ† …ƒ’‹–ƒŽ ‰‘‘†• –‘ –Š‡
‡š–‡––Š‡›ƒ”‡—•‡†‹”‡Žƒ–‹‘–‘–Š‡‰‹ˆ–•‘”ˆ”‡‡•ƒ’Ž‡•†‹•–”‹„—–‡†™‹–Š‘—–ƒ›…‘•‹†‡”ƒ–‹‘Ǥ
‘™‡˜‡”ǡ™Š‡”‡–Š‡ƒ…–‹˜‹–›‘ˆ†‹•–”‹„—–‹‘‘ˆ‰‹ˆ–•‘”ˆ”‡‡•ƒ’Ž‡•ˆƒŽŽ•™‹–Š‹–Š‡•…‘’‡‘ˆDz•—’’Ž›dz
‘ƒ……‘—–‘ˆ–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹…Š‡†—Ž‡‘ˆ–Š‡•ƒ‹†…–ǡ–Š‡•—’’Ž‹‡”™‘—Ž†„‡‡Ž‹‰‹„Ž‡
–‘ƒ˜ƒ‹Ž–Š‡Ǥ
Ǥ Buy one get one free offer
 Š‹•‹•‘–ƒ‹†‹˜‹†—ƒŽ•—’’Ž›‘ˆˆ”‡‡‰‘‘†•ǡ„—–ƒ…ƒ•‡‘ˆ–™‘‘”‘”‡‹†‹˜‹†—ƒŽ•—’’Ž‹‡•™Š‡”‡
ƒ•‹‰Ž‡’”‹…‡‹•„‡‹‰…Šƒ”‰‡†ˆ‘”–Š‡‡–‹”‡•—’’Ž›Ǥ–…ƒƒ–„‡•–„‡–”‡ƒ–‡†ƒ••—’’Ž›‹‰–™‘‰‘‘†•
ˆ‘”–Š‡’”‹…‡‘ˆ‘‡Ǥ
 ƒšƒ„‹Ž‹–›‘ˆ•—…Š•—’’Ž›™‹ŽŽ„‡†‡’‡†‡–—’‘ƒ•–‘™Š‡–Š‡”–Š‡•—’’Ž›‹•ƒ…‘’‘•‹–‡•—’’Ž›‘”
ƒ‹š‡†•—’’Ž›ƒ†–Š‡”ƒ–‡‘ˆ–ƒš•ŠƒŽŽ„‡†‡–‡”‹‡†ƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͺǤ
 •ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡•—’’Ž‹‡”ˆ‘”–Š‡‹’—–•ǡ‹’—–•‡”˜‹…‡•ƒ†…ƒ’‹–ƒŽ‰‘‘†•—•‡†‹”‡Žƒ–‹‘
–‘•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ•’ƒ”–‘ˆ•—…Š‘ˆˆ‡”•Ǥ
Ǥ Discounts including ‘Buy more, save more’ offers
 ‹•…‘—–•‘ˆˆ‡”‡†„›–Š‡•—’’Ž‹‡”•–‘…—•–‘‡”•ȋ‹…Ž—†‹‰•–ƒ‰‰‡”‡††‹•…‘—–—†‡”Dz—›‘”‡ǡ
•ƒ˜‡‘”‡dz•…Š‡‡ƒ†’‘•–•—’’Ž›Ȁ˜‘Ž—‡†‹•…‘—–•‡•–ƒ„Ž‹•Š‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ•—’’Ž›Ȍ
•ŠƒŽŽ„‡‡š…Ž—†‡†–‘†‡–‡”‹‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›’”‘˜‹†‡†–Š‡›•ƒ–‹•ˆ›–Š‡’ƒ”ƒ‡–‡”•Žƒ‹††‘™
‹•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ͳͷǡ‹…Ž—†‹‰–Š‡”‡˜‡”•ƒŽ‘ˆ„›–Š‡”‡…‹’‹‡–‘ˆ–Š‡•—’’Ž›ƒ•‹•
ƒ––”‹„—–ƒ„Ž‡–‘–Š‡†‹•…‘—–‘–Š‡„ƒ•‹•‘ˆ†‘…—‡–ȋ•Ȍ‹••—‡†„›–Š‡•—’’Ž‹‡”Ǥ

 ‘™‡˜‡”ǡ–Š‡•—’’Ž‹‡”•ŠƒŽŽ„‡‡–‹–Ž‡†–‘ƒ˜ƒ‹Ž–Š‡ˆ‘”•—…Š‹’—–•ǡ‹’—–•‡”˜‹…‡•ƒ†…ƒ’‹–ƒŽ‰‘‘†•—•‡†
in relation to the supply of goods or services or both on such discounts.

 Ǥ Secondary discounts

 Š‡•‡ƒ”‡–Š‡†‹•…‘—–•™Š‹…Šƒ”‡‘–‘™ƒ––Š‡–‹‡‘ˆ•—’’Ž›‘”ƒ”‡‘ˆˆ‡”‡†ƒˆ–‡”–Š‡•—’’Ž›‹•ƒŽ”‡ƒ†›
‘˜‡”Ǥ —…Š †‹•…‘—–• •ŠƒŽŽ ‘– „‡ ‡š…Ž—†‡† ™Š‹Ž‡ †‡–‡”‹‹‰ –Š‡ ˜ƒŽ—‡ ‘ˆ •—’’Ž›Ǥ Š‡”‡ ‹• ‘ ‹’ƒ…– ‘
ƒ˜ƒ‹Žƒ„‹Ž‹–›‘”‘–Š‡”™‹•‡‘ˆ‹–Š‡Šƒ†•‘ˆ•—’’Ž‹‡”‹–Š‹•…ƒ•‡Ǥ
ȋ‹Ȍ ƒ›–ƒš’ƒ‹†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘•͹Ͷǡͳʹͻƒ†ͳ͵ͲǤȋ‡…‘˜‡”›‡…–‹‘•Ȍ
 ‡…–‹‘ͳ͹ȋ͸ȌŠ‡
‘˜‡”‡–ƒ›’”‡•…”‹„‡–Š‡ƒ‡”‹™Š‹…Š–Š‡…”‡†‹–”‡ˆ‡””‡†–‘‹•—„Ǧ
•‡…–‹‘•ȋͳȌƒ†ȋʹȌƒ›„‡ƒ––”‹„—–‡†Ǥ

ExplanationǤ Ȃ ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• Šƒ’–‡” ƒ† Šƒ’–‡” ǡ –Š‡ ‡š’”‡••‹‘ Dz’Žƒ– ƒ† ƒ…Š‹‡”›dz ‡ƒ•
ƒ’’ƒ”ƒ–—•ǡ‡“—‹’‡–ǡƒ†ƒ…Š‹‡”›ϐ‹š‡†–‘‡ƒ”–Š„›ˆ‘—†ƒ–‹‘‘”•–”—…–—”ƒŽ•—’’‘”––Šƒ–ƒ”‡—•‡†ˆ‘”ƒ‹‰
‘—–™ƒ”†•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†‹…Ž—†‡••—…Šˆ‘—†ƒ–‹‘ƒ†•–”—…–—”ƒŽ•—’’‘”–•„—–‡š…Ž—†‡•
ȋ‹Ȍ Žƒ†ǡ„—‹Ž†‹‰‘”ƒ›‘–Š‡”…‹˜‹Ž•–”—…–—”‡•Ǣ
ȋ‹‹Ȍ –‡Ž‡…‘—‹…ƒ–‹‘–‘™‡”•Ǣƒ†
ȋ‹‹‹Ȍ ’‹’‡Ž‹‡•Žƒ‹†‘—–•‹†‡–Š‡ˆƒ…–‘”›’”‡‹•‡•Ǥ
 700 Lesson 14 Ȉ EP-TL

Explanation Ȃ • ’‡” •‡…–‹‘ ʹȋʹͺȌ ‘ˆ –Š‡ ‘–‘” ‡Š‹…Ž‡• …–ǡ ͳͻͺͺǡ Dz‘–‘” ˜‡Š‹…Ž‡dz ‘” Dz˜‡Š‹…Ž‡dz ‡ƒ• ƒ›
‡…Šƒ‹…ƒŽŽ›’”‘’‡ŽŽ‡†˜‡Š‹…Ž‡ƒ†ƒ’–‡†ˆ‘”—•‡—’‘”‘ƒ†•™Š‡–Š‡”–Š‡’‘™‡”‘ˆ’”‘’—Ž•‹‘‹•–”ƒ•‹––‡†–Š‡”‡–‘
ˆ”‘ƒ‡š–‡”ƒŽ‘”‹–‡”ƒŽ•‘—”…‡ƒ†‹…Ž—†‡•ƒ…Šƒ••‹•–‘™Š‹…Šƒ„‘†›Šƒ•‘–„‡‡ƒ––ƒ…Š‡†ƒ†ƒ–”ƒ‹Ž‡”Ǣ„—–
†‘‡•‘–‹…Ž—†‡ƒ˜‡Š‹…Ž‡”—‹‰—’‘ϐ‹š‡†”ƒ‹Ž•‘”ƒ˜‡Š‹…Ž‡‘ˆƒ•’‡…‹ƒŽ–›’‡ƒ†ƒ’–‡†ˆ‘”—•‡‘Ž›‹ƒˆƒ…–‘”›‘”
‹ƒ›‘–Š‡”‡…Ž‘•‡†’”‡‹•‡•‘”ƒ˜‡Š‹…Ž‡Šƒ˜‹‰Ž‡••–Šƒˆ‘—”™Š‡‡Ž•ϐ‹––‡†™‹–Š‡‰‹‡…ƒ’ƒ…‹–›‘ˆ‘–‡š…‡‡†‹‰
–™‡–›Ǧϐ‹˜‡…—„‹……‡–‹‡–”‡•Ǥ

Availability of Input Tax Credit in Special Cases [Section 18]

Š‹••‡…–‹‘†‡ƒŽ•™‹–Š‡Ž‹‰‹„‹Ž‹–›‘ˆ…”‡†‹–‹•’‡…‹ƒŽ…ƒ•‡•Ǥ

ƒ’‡”•‘™Š‘–ƒ‡•
”‡‰‹•–”ƒ–‹‘—†‡”
•‡…–‹‘ ʹͷȋ͵ȌǢ
™Š‡”‡ƒ›
”‡‰‹•–‡”‡†’‡”•‘
…‡ƒ•‡•–‘’ƒ›–ƒš
—†‡”•‡…–‹‘ͳͲǢ
ƒ†

™Š‡”‡ƒ‡š‡’–
ƒ’‡”•‘™Š‘ •—’’Ž›‘ˆ‰‘‘†•‘”
Šƒ• ƒ’’Ž‹‡†ˆ‘” •‡”˜‹…‡•‘”„‘–Š„›
”‡‰‹•–”ƒ–‹‘—†‡” ƒ”‡‰‹•–‡”‡†’‡”•‘
Availability „‡…‘‡•ƒ–ƒšƒ„Ž‡
–Š‹•…–Ǣ of Input Tax •—’’Ž›Ǥ
Credit in
Special Cases

ȋͳȌ—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†Ȃ
ȋƒȌ ƒ’‡”•‘™Š‘Šƒ•ƒ’’Ž‹‡†ˆ‘””‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–™‹–Š‹–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘™Š‹…ŠŠ‡
„‡…‘‡•Ž‹ƒ„Ž‡–‘”‡‰‹•–”ƒ–‹‘ƒ†Šƒ•„‡‡‰”ƒ–‡†•—…Š”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡‡–‹–Ž‡†–‘–ƒ‡…”‡†‹–‘ˆ
‹’—––ƒš‹”‡•’‡…–‘ˆ‹’—–•Š‡Ž†‹•–‘…ƒ†‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹
•–‘… ‘ –Š‡ †ƒ› ‹‡†‹ƒ–‡Ž› ’”‡…‡†‹‰ –Š‡ †ƒ–‡ ˆ”‘ ™Š‹…Š Š‡ „‡…‘‡• Ž‹ƒ„Ž‡ –‘ ’ƒ› –ƒš —†‡” –Š‡
’”‘˜‹•‹‘•‘ˆ–Š‹•…–Ǣ

ȋ„Ȍ ƒ’‡”•‘™Š‘–ƒ‡•”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ʹͷ•ŠƒŽŽ„‡‡–‹–Ž‡†–‘–ƒ‡…”‡†‹–‘ˆ‹’—–
–ƒš‹”‡•’‡…–‘ˆ‹’—–•Š‡Ž†‹•–‘…ƒ†‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…
‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘Ǣ

ȋ…Ȍ ™Š‡”‡ƒ›”‡‰‹•–‡”‡†’‡”•‘…‡ƒ•‡•–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲǡŠ‡•ŠƒŽŽ„‡‡–‹–Ž‡†–‘–ƒ‡…”‡†‹–‘ˆ‹’—–
–ƒš‹”‡•’‡…–‘ˆ‹’—–•Š‡Ž†‹•–‘…ǡ‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…ƒ†
‘…ƒ’‹–ƒŽ‰‘‘†•‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡ˆ”‘™Š‹…ŠŠ‡„‡…‘‡•Ž‹ƒ„Ž‡–‘’ƒ›–ƒš—†‡”
•‡…–‹‘ͻǣ

 ”‘˜‹†‡†–Šƒ––Š‡…”‡†‹–‘…ƒ’‹–ƒŽ‰‘‘†••ŠƒŽŽ„‡”‡†—…‡†„›•—…Š’‡”…‡–ƒ‰‡’‘‹–•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǣ

ȋ†Ȍ ™Š‡”‡ƒ‡š‡’–•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š„›ƒ”‡‰‹•–‡”‡†’‡”•‘„‡…‘‡•ƒ–ƒšƒ„Ž‡•—’’Ž›ǡ
•—…Š ’‡”•‘ •ŠƒŽŽ „‡ ‡–‹–Ž‡† –‘ –ƒ‡ …”‡†‹– ‘ˆ ‹’—– –ƒš ‹ ”‡•’‡…– ‘ˆ ‹’—–• Š‡Ž† ‹ •–‘… ƒ† ‹’—–•
…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…”‡Žƒ–ƒ„Ž‡–‘•—…Š‡š‡’–•—’’Ž›ƒ†‘…ƒ’‹–ƒŽ
‰‘‘†•‡š…Ž—•‹˜‡Ž›—•‡†ˆ‘”•—…Š‡š‡’–•—’’Ž›‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡ˆ”‘™Š‹…Š
•—…Š•—’’Ž›„‡…‘‡•–ƒšƒ„Ž‡ǣ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 701

 ”‘˜‹†‡† –Šƒ– –Š‡ …”‡†‹– ‘ …ƒ’‹–ƒŽ ‰‘‘†• •ŠƒŽŽ „‡ ”‡†—…‡† „› •—…Š ’‡”…‡–ƒ‰‡ ’‘‹–• ƒ• ƒ› „‡
’”‡•…”‹„‡†Ǥ

Time Limit to claim ITC

ȋʹȌ”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‘–„‡‡–‹–Ž‡†–‘–ƒ‡‹’—––ƒš…”‡†‹–—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‹”‡•’‡…–‘ˆƒ›•—’’Ž›
‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–‘Š‹ƒˆ–‡”–Š‡‡š’‹”›‘ˆ‘‡›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ–ƒš‹˜‘‹…‡”‡Žƒ–‹‰–‘
•—…Š•—’’Ž›Ǥ
‘–‡ǣ‡”‡ǡ–Š‡ƒš‹—–‹‡Ž‹‹–ˆ‘”ƒ˜ƒ‹Ž‹‰‹•‘‡›‡ƒ”Ǥ˜‘‹…‡•‘”‡–Šƒ‘‡›‡ƒ”‘Ž†ƒ”‡‘–‡Ž‹‰‹„Ž‡ˆ‘”
taking credit.

ITC in case of sale, merger, demerger, amalgamation, lease or transfer of the business
ȋ͵Ȍ Š‡”‡ –Š‡”‡ ‹• ƒ …Šƒ‰‡ ‹ –Š‡ …‘•–‹–—–‹‘ ‘ˆ ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ‘ ƒ……‘—– ‘ˆ •ƒŽ‡ǡ ‡”‰‡”ǡ †‡‡”‰‡”ǡ
ƒƒŽ‰ƒƒ–‹‘ǡŽ‡ƒ•‡‘”–”ƒ•ˆ‡”‘ˆ–Š‡„—•‹‡••™‹–Š–Š‡•’‡…‹ϐ‹…’”‘˜‹•‹‘•ˆ‘”–”ƒ•ˆ‡”‘ˆŽ‹ƒ„‹Ž‹–‹‡•ǡ‘”†—‡–‘
–Š‡ †‡ƒ–Š ‘ˆ –Š‡ •‘Ž‡ ’”‘’”‹‡–‘”ǡ –Š‡ •ƒ‹† ”‡‰‹•–‡”‡† ’‡”•‘ •ŠƒŽŽ „‡ ƒŽŽ‘™‡† –‘ –”ƒ•ˆ‡” –Š‡ ‹’—– –ƒš …”‡†‹–
™Š‹…Š”‡ƒ‹•——–‹Ž‹•‡†‹Š‹•‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”–‘•—…Š•‘Ž†ǡ‡”‰‡†ǡ†‡‡”‰‡†ǡƒƒŽ‰ƒƒ–‡†ǡŽ‡ƒ•‡†
‘”–”ƒ•ˆ‡””‡†„—•‹‡••‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ

Reversal of ITC on switching to composition levy or exit from tax-paying status [Section 18(4) read with rule
44 of CGST Rules]
ȋͶȌŠ‡”‡ƒ›”‡‰‹•–‡”‡†’‡”•‘™Š‘Šƒ•ƒ˜ƒ‹Ž‡†‘ˆ‹’—––ƒš…”‡†‹–‘’–•–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲ‘”ǡ™Š‡”‡–Š‡
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š•—’’Ž‹‡†„›Š‹„‡…‘‡™Š‘ŽŽ›‡š‡’–ǡŠ‡•ŠƒŽŽ’ƒ›ƒƒ‘—–ǡ„›™ƒ›‘ˆ†‡„‹–‹–Š‡
‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‘”‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ǡ‡“—‹˜ƒŽ‡––‘–Š‡…”‡†‹–‘ˆ‹’—––ƒš‹”‡•’‡…–‘ˆ‹’—–•
Š‡Ž†‹•–‘…ƒ†‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧˆ‹‹•Š‡†‘”ˆ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…ƒ†‘…ƒ’‹–ƒŽ‰‘‘†•ǡ
”‡†—…‡†„›•—…Š’‡”…‡–ƒ‰‡’‘‹–•ƒ•ƒ›„‡’”‡•…”‹„‡†ȏͷΨ’‡”“—ƒ”–‡”‘ˆƒ›‡ƒ”‘”’ƒ”––Š‡”‡‘ˆˆ”‘–Š‡
†ƒ–‡ ‘ˆ ‹••—‡ ‘ˆ ‹˜‘‹…‡ ˆ‘” •—…Š ‰‘‘†• ȏ‹Ǥ‡Ǥǡ  ’‡”–ƒ‹‹‰ –‘ ”‡ƒ‹‹‰ —•‡ˆ—Ž Ž‹ˆ‡ ‘ˆ –Š‡ …ƒ’‹–ƒŽ ‰‘‘†•
ȋ‹“—ƒ”–‡”•ȌȐǡ‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡†ƒ–‡‘ˆ‡š‡”…‹•‹‰‘ˆ•—…Š‘’–‹‘‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ
–Š‡†ƒ–‡‘ˆ•—…Š‡š‡’–‹‘ǣ
”‘˜‹†‡†–Šƒ–ƒˆ–‡”’ƒ›‡–‘ˆ•—…Šƒ‘—–ǡ–Š‡„ƒŽƒ…‡‘ˆ‹’—––ƒš…”‡†‹–ǡ‹ˆƒ›ǡŽ›‹‰‹Š‹•‡Ž‡…–”‘‹……”‡†‹–
Ž‡†‰‡”•ŠƒŽŽŽƒ’•‡Ǥ
ȋͷȌŠ‡ƒ‘—–‘ˆ…”‡†‹–—†‡”•—„Ǧ•‡…–‹‘ȋͳȌƒ†–Š‡ƒ‘—–’ƒ›ƒ„Ž‡—†‡”•—„Ǧ•‡…–‹‘ȋͶȌ•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†‹
•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ

Amount payable on supply of capital goods or plant and machinery on which ITC has been taken [Section
18(6) read with rule 40(2) & rule 44(6) of CGST Rules]
ȋ͸Ȍ…ƒ•‡‘ˆ•—’’Ž›‘ˆ…ƒ’‹–ƒŽ‰‘‘†•‘”’Žƒ–ƒ†ƒ…Š‹‡”›ǡ‘™Š‹…Š‹’—––ƒš…”‡†‹–Šƒ•„‡‡–ƒ‡ǡ–Š‡”‡‰‹•–‡”‡†
’‡”•‘•ŠƒŽŽ’ƒ›ƒƒ‘—–Ǥ

Ȉ ‡“—ƒŽ–‘–Š‡‹’—––ƒš…”‡†‹––ƒ‡‘–Š‡•ƒ‹†…ƒ’‹–ƒŽ‰‘‘†•‘”’Žƒ–ƒ†ƒ…Š‹‡”›”‡†—…‡†„›ͷΨ
’‡”“—ƒ”–‡”‘ˆƒ›‡ƒ”‘”’ƒ”––Š‡”‡‘ˆˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡ˆ‘”•—…Š‰‘‘†•ȏ‹Ǥ‡Ǥǡ’‡”–ƒ‹‹‰
to”‡ƒ‹‹‰—•‡ˆ—ŽŽ‹ˆ‡‘ˆ–Š‡…ƒ’‹–ƒŽ‰‘‘†•ȋ‹“—ƒ”–‡”•ȌȐ

       

Ȉ –Š‡ –ƒš ‘ –Š‡ –”ƒ•ƒ…–‹‘ ˜ƒŽ—‡ ‘ˆ •—…Š …ƒ’‹–ƒŽ ‰‘‘†• ‘” ’Žƒ– ƒ† ƒ…Š‹‡”› †‡–‡”‹‡† —†‡”
•‡…–‹‘ͳͷǡ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”ǣ

”‘˜‹†‡†–Šƒ–™Š‡”‡”‡ˆ”ƒ…–‘”›„”‹…•ǡ‘—Ž†•ƒ††‹‡•ǡŒ‹‰•ƒ†ϐ‹š–—”‡•ƒ”‡•—’’Ž‹‡†ƒ••…”ƒ’ǡ–Š‡–ƒšƒ„Ž‡’‡”•‘
ƒ›’ƒ›–ƒš‘–Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡‘ˆ•—…Š‰‘‘†•†‡–‡”‹‡†—†‡”•‡…–‹‘ͳͷǤThe table below summarizes
–Š‡‡–‹–Ž‡‡–‘ˆ’—–ƒš”‡†‹–ȋȌǣ
702 Lesson 14 Ȉ EP-TL

Case Persons eligible Goods entitled as on Conditions

ͳǤ ‡”•‘ ™Š‘ Šƒ• ƒ’’Ž‹‡† ˆ‘” ‡…ƒ…Žƒ‹–Š‡‘‹’—–•Š‡Ž† ‹–Š‡ —•–„‡ƒ˜ƒ‹Ž‡†™‹–Š‹
”‡‰‹•–”ƒ–‹‘ ™‹–Š‹ ͵Ͳ †ƒ›•
ˆ”‘ –Š‡ †ƒ–‡ ‘ ™Š‹…Š Š‡
‘‘†• ƒ• ‘ –Š‡ †ƒ› ‹‡†‹ƒ–‡Ž›
„‡…‘‡•Ž‹ƒ„Ž‡–‘ ”‡‰‹•–”ƒ–‹‘ǡ
ƒ† Šƒ• „‡‡ ‰”ƒ–‡† •—…Š
”‡‰‹•–”ƒ–‹‘
ˆ‘”‘ˆƒ™ƒ–‡”‹ƒŽ•ȀȀ ‹‹•Š‡† ͳ ›‡ƒ” ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ
‹••—‡ ‘ˆ –ƒš ‹˜‘‹…‡ „› –Š‡
’”‡…‡†‹‰ –Š‡ †ƒ–‡ ˆ”‘ ™Š‹…Š Š‡ •—’’Ž‹‡”
„‡…‘‡• Ž‹ƒ„Ž‡ –‘ ’ƒ›–ƒš
ʹǤ ‡”•‘ ™Š‘ ‹•ǯ– Ž‹ƒ„Ž‡ –‘ ‡ …ƒ …Žƒ‹ –Š‡  ‘ ‹’—–• Š‡Ž† —•–„‡ƒ˜ƒ‹Ž‡†™‹–Š‹
”‡‰‹•–‡” per seǡ „—– ‘„–ƒ‹• ‹ –Š‡ ˆ‘” ‘ˆ ƒ™ ƒ–‡”‹ƒŽ•Ȁ Ȁ ͳ ›‡ƒ” ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ
˜‘Ž—–ƒ”› ”‡‰‹•–”ƒ–‹‘ ‹‹•Š‡†
‘‘†•ƒ•‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž› ‹••—‡ ‘ˆ –ƒš ‹˜‘‹…‡ „› –Š‡
’”‡…‡†‹‰ –Š‡ †ƒ–‡ ‘ˆ ”‡‰‹•–”ƒ–‹‘ •—’’Ž‹‡”
͵Ǥ ‡‰‹•–‡”‡†’‡”•‘™Š‘ …‡ƒ•‡• ‡ …ƒ …Žƒ‹ –Š‡  ‘ ‹’—–• Š‡Ž† ‘ƒ’‹–ƒŽ
‘‘†• ™‹ŽŽ
–‘ „‡ —†‡” …‘’‘•‹–‹‘ Ž‡˜› ‹ –Š‡ ˆ‘” ‘ˆ ƒ™ ƒ–‡”‹ƒŽ•Ȁ  Ȁ „‡ ”‡†—…‡† „› ͷΨ ’‡”
ƒ† •™‹–…Š‡• –‘ –Š‡ ”‡‰—Žƒ” ‹‹•Š‡†
‘‘†•Ƭƒ’‹–ƒŽ
‘‘†• ƒ• ‘ “—ƒ”–‡” ‘ˆ ›‡ƒ” Ȁ ’ƒ”–
•…Š‡‡ –Š‡ †ƒ› ‹‡†‹ƒ–‡Ž› ’”‡…‡†‹‰ –Š‡ †ƒ–‡ –Š‡”‡‘ˆ ‘ˆ —•ƒ‰‡ ˆ”‘ –Š‡
ˆ”‘ ™Š‹…Š Š‡ „‡…‘‡•Ž‹ƒ„Ž‡–‘’ƒ›–ƒš †ƒ–‡‘ˆ‹˜‘‹…‡Ǥ
—†‡”–Š‡ ”‡‰—Žƒ”•…Š‡‡
ͶǤ ‡‰‹•–‡”‡† ’‡”•‘ ™Š‘•‡ ‡…ƒ…Žƒ‹–Š‡‘‹’—–•Š‡Ž† ‹ –Š‡ ‘ƒ’‹–ƒŽ
‘‘†• ™‹ŽŽ
‡š‡’– •—’’Ž‹‡•„‡…‘‡ ˆ‘” ‘ˆ ƒ™ ƒ–‡”‹ƒŽ•ȀȀ ‹‹•Š‡† „‡ ”‡†—…‡† „› ͷΨ ’‡”
–ƒšƒ„Ž‡
‘‘†• Ƭ ƒ’‹–ƒŽ
‘‘†• ”‡Žƒ–ƒ„Ž‡ –‘ “—ƒ”–‡” ‘ˆ ›‡ƒ” Ȁ ’ƒ”–
•—…Š ‡š‡’– •—’’Ž› ƒ• ‘ –Š‡ †ƒ› –Š‡”‡‘ˆ ‘ˆ —•ƒ‰‡ ˆ”‘ –Š‡
‹‡†‹ƒ–‡Ž› ’”‡…‡†‹‰ –Š‡ †ƒ–‡ ˆ”‘ †ƒ–‡‘ˆ‹˜‘‹…‡Ǥ
™Š‹…Š –Š‡ •—’’Ž› „‡…‘‡•–ƒšƒ„Ž‡

Illustration 4
”Ǥ„‡…‘‡•Ž‹ƒ„Ž‡–‘’ƒ›–ƒš‘ͳ•–—‰—•–ƒ†Šƒ•‘„–ƒ‹‡†”‡‰‹•–”ƒ–‹‘‘ͳ͹–Š—‰—•–Ǥ
‡™‹ŽŽŠ‡…‡„‡‡–‹–Ž‡†–‘–ƒ‡‡ˆˆ‡…–‹˜‡͵ͳ•– —Ž›‘‹’—–•ȋƒ™ƒ–‡”‹ƒŽ•Ȁ ‹‹•Š‡†
‘‘†•Ƭƒ’‹–ƒŽ
‘”‹”‘…‡••ȌǢ‡š…‡’–‘ƒ’‹–ƒŽ
‘‘†•Ǥ
–—•–„‡‘–‡†–Šƒ–‹ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹•‘–ƒ†‡™‹–Š‹͵Ͳ†ƒ›•ǡ–Š‡Š‡™‹ŽŽ„‡ƒ„Ž‡–‘…Žƒ‹‡ˆˆ‡…–‹˜‡
–Š‡†ƒ–‡‘ˆ‰”ƒ–‘ˆ•—…Š”‡‰‹•–”ƒ–‹‘Ǥ

Illustration 5
MrǤƒ…“—‹”‡†ƒƒ’‹–ƒŽ••‡–‘ͳ•–’”‹ŽǡʹͲʹͲƒ†—•‡†‹–ˆ‘”’”‘†—…–‹‘‘ˆ‡š‡’–•—’’Ž‹‡•‘Ž›Ǥ‘™ǡ‹‘˜‡Ǧ
„‡”ʹͲʹͳǡŠ‹••—’’Ž‹‡•„‡…‘‡–ƒšƒ„Ž‡ǤŠ‡…‘•–‘ˆ–Š‡ƒ••‡–™ƒ•ʹǡͷͲǡͲͲͲƒ†
ͳͺΨ™ƒ•…Šƒ”‰‡†‘‹–Ǥ
‡…‡–Š‡ƒ’’Ž‹…ƒ„Ž‡‹•ʹͷͲǡͲͲͲȗͳͺΨǡ™Š‹…Š‹•ͶͷǡͲͲͲǤ
‘™ǡ—„‡”‘ˆ“—ƒ”–‡”•‘ˆ—•ƒ‰‡–Šƒ–Šƒ˜‡‡Žƒ’•‡†„‡–™‡‡’”‹ŽʹͲʹͲ–‘‘˜‡„‡”ʹͲʹͳƒ”‡•‡˜‡Ǥ
‡…‡ǡ–Š‡”‡™‘—Ž†„‡ƒ”‡†—…–‹‘‘ˆͷΨ’‡”“—ƒ”–‡”ˆ‘”͹“—ƒ”–‡”•ǡ–Šƒ–‹•͵ͷΨǤ
Š‡”‡ˆ‘”‡ǡƒ˜ƒ‹Žƒ„Ž‡™‘—Ž†„‡ƒ•—†‡”Ǥ

‘–ƒŽ ͶͷǡͲͲͲ
‡••ǣ‡†—…–‹‘ˆ‘”͹“—ƒ”–‡”• ͳͷǡ͹ͷͲ
‡–ƒ˜ƒ‹Žƒ„Ž‡ ʹͻǡʹͷͲ
‘–‡ –Šƒ– –Š‹•  ™‘—Ž† „‡ ƒ˜ƒ‹Žƒ„Ž‡ ˆ”‘ –Š‡ †ƒ–‡ ‹‡†‹ƒ–‡Ž› ’”‡…‡†‹‰ –Š‡ †ƒ–‡ ˆ”‘ ™Š‹…Š –Š‡ •—’’Ž›
„‡…‘‡•–ƒšƒ„Ž‡Ǥ
—Ž‡ͶͲȋʹȌ‘ˆ
ǡʹͲͳ͹ǡ•–ƒ–‡•–Šƒ––Š‡ƒ‘—–‘ˆ…”‡†‹–•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†„›”‡†—…‹‰–Š‡‹’—––ƒš̷ͷΨ
ˆ‘”‡˜‡”›“—ƒ”–‡”‘”’ƒ”––Š‡”‡‘ˆǤ–•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†ˆ”‘–Š‡†ƒ–‡‘ˆ‹••—‡‘ˆ‹˜‘‹…‡ˆ‘”–Š‡…ƒ’‹–ƒŽ‰‘‘†•Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 703

Illustration 6
”Ǥƒ’’Ž‹‡•ˆ‘”˜‘Ž—–ƒ”›”‡‰‹•–”ƒ–‹‘‘ͳ•–‡’–‡„‡”ƒ†‹•‰”ƒ–‡†•—…Š”‡‰‹•–”ƒ–‹‘‘ͻ–Š‡’–‡„‡”Ǥ
‡™‹ŽŽŠ‡…‡„‡‡–‹–Ž‡†–‘–ƒ‡‡ˆˆ‡…–‹˜‡ͺ–Š‡’–‡„‡”‘‹’—–•ȋƒ™ƒ–‡”‹ƒŽȀ‘”‹”‘…‡••Ȁ ‹•‹Š‡†

‘‘†•ȌǢ‡š…‡’–‘ƒ’‹–ƒŽ
‘‘†•Ǥ

Transfer of ITC on account of change in constitution of registered person [Section 18(3) read with rule 41
of CGST Rules]
…ƒ•‡‘ˆ•ƒŽ‡ǡ‡”‰‡”ǡ†‡‡”‰‡”ǡƒƒŽ‰ƒƒ–‹‘ǡ–”ƒ•ˆ‡”‘”…Šƒ‰‡‹‘™‡”•Š‹’‘ˆ„—•‹‡••‡–…Ǥǡ–Š‡–Šƒ–
”‡ƒ‹•——–‹Ž‹œ‡†‹–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‘ˆ–Š‡”‡‰‹•–‡”‡†’‡”•‘…ƒ„‡–”ƒ•ˆ‡””‡†–‘–Š‡‡™‡–‹–›ǡ
’”‘˜‹†‡† –Š‡”‡ ‹• ƒ •’‡…‹ˆ‹… ’”‘˜‹•‹‘ ˆ‘” –”ƒ•ˆ‡” ‘ˆ Ž‹ƒ„‹Ž‹–‹‡• ‹ •—…Š …Šƒ‰‡ ‘ˆ …‘•–‹–—–‹‘Ǥ ‹”…—Žƒ” ‘Ǥ
ͻ͸ȀͳͷȀʹͲͳͻ
†ƒ–‡†ʹͺǤͲ͵ǤʹͲͳͻŠƒ•…Žƒ”‹ˆ‹‡†–Šƒ––”ƒ•ˆ‡”‘”…Šƒ‰‡‹–Š‡‘™‡”•Š‹’‘ˆ„—•‹‡••‹…Ž—†‡•
–”ƒ•ˆ‡”‘”…Šƒ‰‡‹–Š‡‘™‡”•Š‹’†—‡–‘†‡ƒ–Š‘ˆ–Š‡•‘Ž‡’”‘’”‹‡–‘”Ǥ–Š‡…ƒ•‡‘ˆ†‡‡”‰‡”ǡ™‹ŽŽ„‡
ƒ’’‘”–‹‘‡† ‹ –Š‡ ”ƒ–‹‘ ‘ˆ –Š‡ ˜ƒŽ—‡ ‘ˆ ƒ••‡–• ‘ˆ –Š‡ ‡™ —‹–• ƒ• •’‡…‹ˆ‹‡† ‹ –Š‡ †‡‡”‰‡” •…Š‡‡Ǥ ‡”‡ǡ
Dz˜ƒŽ—‡ ‘ˆ ƒ••‡–•dz ‡ƒ• –Š‡ ˜ƒŽ—‡ ‘ˆ –Š‡ ‡–‹”‡ ƒ••‡–• ‘ˆ –Š‡ „—•‹‡•• ‹””‡•’‡…–‹˜‡ ‘ˆ ™Š‡–Š‡”  Šƒ• „‡‡
ƒ˜ƒ‹Ž‡†–Š‡”‡‘‘”‘–Ǥ

S. No. Issue / Question Žƒ”‹ϐ‹…ƒ–‹‘

ͳǤ ȋ‹Ȍ…ƒ•‡‘ˆ†‡‡”‰‡”ǡ’”‘˜‹•‘ ”‘˜‹•‘ –‘ •—„Ǧ”—Ž‡ ȋͳȌ ‘ˆ ”—Ž‡ Ͷͳ ‘ˆ –Š‡ 
 —Ž‡• ’”‘˜‹†‡•
–‘ ”—Ž‡ Ͷͳ ȋͳȌ ‘ˆ –Š‡ 
 ˆ‘” ƒ’’‘”–‹‘‡– ‘ˆ –Š‡ ‹’—– –ƒš …”‡†‹– ‹ –Š‡ ”ƒ–‹‘ ‘ˆ –Š‡
—Ž‡• ’”‘˜‹†‡• –Šƒ– –Š‡ ‹’—– ˜ƒŽ—‡ ‘ˆ ƒ••‡–• ‘ˆ –Š‡ ‡™ —‹–• ƒ• •’‡…‹ˆ‹‡† ‹ –Š‡ †‡‡”‰‡”
–ƒš…”‡†‹–•ŠƒŽŽ„‡ƒ’’‘”–‹‘‡† •…Š‡‡Ǥ —”–Š‡”ǡ –Š‡ ‡š’Žƒƒ–‹‘ –‘ •—„Ǧ”—Ž‡ ȋͳȌ ‘ˆ ”—Ž‡ Ͷͳ ‘ˆ
‹ –Š‡ ”ƒ–‹‘ ‘ˆ –Š‡ ˜ƒŽ—‡ ‘ˆ
–Š‡ 
 —Ž‡• •–ƒ–‡• –Šƒ– Dz˜ƒŽ—‡ ‘ˆ ƒ••‡–•dz ‡ƒ• –Š‡ ˜ƒŽ—‡
ƒ••‡–• ‘ˆ –Š‡ ‡™ —‹–• ƒ•
‘ˆ –Š‡ ‡–‹”‡ ƒ••‡–• ‘ˆ –Š‡ „—•‹‡••ǡ ™Š‡–Š‡” ‘” ‘– ‹’—– –ƒš
•’‡…‹ϐ‹‡† ‹ –Š‡ †‡‡”‰‡”
•…Š‡‡Ǥ ‘™‡˜‡”ǡ ‹– ‹• ‘– …”‡†‹– Šƒ• „‡‡ ƒ˜ƒ‹Ž‡† –Š‡”‡‘Ǥ †‡” –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡
…Ž‡ƒ” ƒ• –‘ ™Š‡–Š‡” –Š‡ ˜ƒŽ—‡ 
…–ǡƒ’‡”•‘Ȁ…‘’ƒ›ȋŠƒ˜‹‰•ƒ‡Ȍ‹•”‡“—‹”‡†–‘
‘ˆƒ••‡–•‘ˆ–Š‡‡™—‹–•‹•–‘ ‘„–ƒ‹ •‡’ƒ”ƒ–‡ ”‡‰‹•–”ƒ–‹‘ ‹ †‹ˆˆ‡”‡– –ƒ–‡• ƒ† ‡ƒ…Š •—…Š
„‡…‘•‹†‡”‡†ƒ––ƒ–‡Ž‡˜‡Ž‘” ”‡‰‹•–”ƒ–‹‘‹•…‘•‹†‡”‡†ƒ†‹•–‹…–’‡”•‘ˆ‘”–Š‡’—”’‘•‡‘ˆ
ƒ–ƒŽŽǦ†‹ƒŽ‡˜‡ŽǤ –Š‡ …–Ǥ……‘”†‹‰Ž›ǡˆ‘”–Š‡’—”’‘•‡‘ˆƒ’’‘”–‹‘‡–‘ˆ
’—”•—ƒ– –‘ ƒ †‡‡”‰‡” —†‡” •—„ ”—Ž‡ ȋͳȌ ‘ˆ ”—Ž‡ Ͷͳ ‘ˆ –Š‡

—Ž‡•ǡ–Š‡˜ƒŽ—‡‘ˆƒ••‡–•‘ˆ–Š‡‡™—‹–•‹•–‘„‡–ƒ‡
ƒ– –Š‡ –ƒ–‡ Ž‡˜‡Ž ȋƒ– –Š‡ Ž‡˜‡Ž ‘ˆ †‹•–‹…– ’‡”•‘Ȍ ƒ† ‘– ƒ–
–Š‡ƒŽŽǦ†‹ƒŽ‡˜‡ŽǤŽŽ—•–”ƒ–‹‘…‘’ƒ›‹•”‡‰‹•–‡”‡†‹
–™‘–ƒ–‡•‘ˆǤǤƒ†ǤǤ–•–‘–ƒŽ˜ƒŽ—‡‘ˆƒ••‡–•‹•™‘”–Š•Ǥ
ͳͲͲ …”‘”‡ǡ ™Š‹Ž‡ ‹–• ƒ••‡–• ‹ –ƒ–‡ ‘ˆ ǤǤ ƒ† Ǥ ƒ”‡ •Ǥ ͸Ͳ
…”‘”‡ ƒ† •Ǥ ͶͲ …”‘”‡ ”‡•’‡…–‹˜‡Ž›Ǥ – †‡‡”‰‡• ƒ ’ƒ”– ‘ˆ ‹–•
„—•‹‡••–‘…‘’ƒ›Ǥ•ƒ’ƒ”–‘ˆ•—…Š†‡‡”‰‡”ǡƒ••‡–•‘ˆ
ƒ‘—–‹‰–‘•Ǥ͵Ͳ”‘”‡ƒ”‡–”ƒ•ˆ‡””‡†–‘…‘’ƒ›
‹–ƒ–‡‘ˆǤǡ™Š‹Ž‡ƒ••‡–•ƒ‘—–‹‰–‘•ǤͳͲ…”‘”‡‘Ž›ƒ”‡
–”ƒ•ˆ‡””‡† –‘  ‹ –ƒ–‡ ‘ˆ ǤǤ ȋ‘–ƒŽ ƒ••‡–• ƒ‘—–‹‰ –‘
•ǤͶͲ…”‘”‡ƒ–ƒŽŽǦ†‹ƒŽ‡˜‡Žƒ”‡–”ƒ•ˆ‡””‡†ˆ”‘–‘ȌǤ
Š‡——–‹Ž‹œ‡†‘ˆ‹–ƒ–‡‘ˆǤǤ•ŠƒŽŽ„‡–”ƒ•ˆ‡””‡†–‘
‘–Š‡„ƒ•‹•‘ˆ”ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆƒ••‡–•‹–ƒ–‡‘ˆǤǤǡ‹Ǥ‡Ǥǡ
͵ͲȀ͸Ͳ α ͲǤͷ ƒ† ‘– ‘ –Š‡ „ƒ•‹• ‘ˆ ƒŽŽǦ†‹ƒ ”ƒ–‹‘ ‘ˆ ˜ƒŽ—‡ ‘ˆ
ƒ••‡–•ǡ‹Ǥ‡ǤǡͶͲȀͳͲͲαͲǤͶǤ‹‹Žƒ”Ž›ǡ——–‹Ž‹œ‡†‘ˆ‹–ƒ–‡
‘ˆ ǤǤ ™‹ŽŽ „‡ –”ƒ•ˆ‡””‡† –‘  ‹ ”ƒ–‹‘ ‘ˆ˜ƒŽ—‡ ‘ˆƒ••‡–•‹
–ƒ–‡‘ˆǤǤǡ‹Ǥ‡ǤǡͳͲȀͶͲαͲǤʹͷǤ
704 Lesson 14 Ȉ EP-TL

ʹǤ • –Š‡ –”ƒ•ˆ‡”‘” ”‡“—‹”‡† –‘ ‘Ǥ Š‡ –”ƒ•ˆ‡”‘” ‹• ”‡“—‹”‡† –‘ ϐ‹Ž‡ FORM GST ITC-02 ‘Ž› ‹
ϐ‹Ž‡ 
  Ȃ Ͳʹ ‹ ƒŽŽ –Š‘•‡–ƒ–‡•™Š‡”‡„‘–Š–”ƒ•ˆ‡”‘”ƒ†–”ƒ•ˆ‡”‡‡ƒ”‡”‡‰‹•–‡”‡†Ǥ
–ƒ–‡•™Š‡”‡‹–‹•”‡‰‹•–‡”‡†ǫ
͵Ǥ Š‡’”‘˜‹•‘–‘”—Ž‡ͶͳȋͳȌ‘ˆ–Š‡ ‡•ǡ –Š‡ ˆ‘”—Žƒ ˆ‘” ƒ’’‘”–‹‘‡– ‘ˆ ǡ ƒ• ’”‡•…”‹„‡† —†‡”

—Ž‡•‡š’Ž‹…‹–Ž›‡–‹‘• ’”‘˜‹•‘ –‘ •—„Ǧ”—Ž‡ ȋͳȌ ‘ˆ ”—Ž‡ Ͷͳ ‘ˆ –Š‡ 
 —Ž‡•ǡ •ŠƒŽŽ „‡
Ǯ†‡‡”‰‡”ǯǤ –Š‡” ˆ‘”• ‘ˆ ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ƒŽŽˆ‘”•‘ˆ„—•‹‡••”‡Ǧ‘”‰ƒ‹œƒ–‹‘–Šƒ–”‡•—Ž–•‹
„—•‹‡•• ”‡‘”‰ƒ‹œƒ–‹‘ ™Š‡”‡ ’ƒ”–‹ƒŽ–”ƒ•ˆ‡”‘ˆ„—•‹‡••ƒ••‡–•ƒŽ‘‰™‹–ŠŽ‹ƒ„‹Ž‹–‹‡•Ǥ
’ƒ”– ‘ˆ „—•‹‡•• ‹• Š‹˜‡† ‘ˆˆ
‘” „—•‹‡•• ‹ –”ƒ•ˆ‡””‡†
ƒ• ƒ ‰‘‹‰ …‘…‡” ‡–…Ǥ Šƒ˜‡
‘– „‡‡ …‘˜‡”‡† ‹ –Š‡ •ƒ‹†
”—Ž‡Ǥ Š‡”‡˜‡” „—•‹‡••
”‡‘”‰ƒ‹œƒ–‹‘ ”‡•—Ž–• ‹
’ƒ”–‹ƒŽ –”ƒ•ˆ‡” ‘ˆ „—•‹‡••
ƒ••‡–• ƒŽ‘‰ ™‹–Š Ž‹ƒ„‹Ž‹–‹‡•ǡ
™Š‡–Š‡” –Š‡ ’”‘˜‹•‘ –‘ ”—Ž‡
ͶͳȋͳȌ ‘ˆ –Š‡ 
 —Ž‡•ǡ ʹͲͳ͹
•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡–‘…ƒŽ…—Žƒ–‡
–Š‡ƒ‘—–‘ˆ–”ƒ•ˆ‡”ƒ„Ž‡ǫ
ͶǤ Š‡–Š‡” –Š‡ ”ƒ–‹‘ ‘ˆ ˜ƒŽ—‡ ‘ˆ ‘ǡ–Š‡”ƒ–‹‘‘ˆ˜ƒŽ—‡‘ˆƒ••‡–•ǡƒ•’”‡•…”‹„‡†—†‡”’”‘˜‹•‘–‘
ƒ••‡–•ǡ ƒ• ’”‡•…”‹„‡† —†‡” •—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡Ͷͳ‘ˆ–Š‡
—Ž‡•ǡ•ŠƒŽŽ„‡ƒ’’Ž‹‡†–‘–Š‡
’”‘˜‹•‘ –‘ ”—Ž‡ Ͷͳ ȋͳȌ ‘ˆ –Š‡ –‘–ƒŽ ƒ‘—– ‘ˆ ——–‹Ž‹œ‡† ‹’—– –ƒš …”‡†‹– ȋȌ ‘ˆ –Š‡

 —Ž‡•ǡ •ŠƒŽŽ „‡ ƒ’’Ž‹‡† –”ƒ•ˆ‡”‘”ǡ‹Ǥ‡Ǥǡ•—‘ˆ
ǡ
Ȁ
ƒ†
…”‡†‹–ǤŠ‡
‹”‡•’‡…–‘ˆ‡ƒ…Š‘ˆ–Š‡Š‡ƒ†• •ƒ‹†ˆ‘”—Žƒ‡‡†‘–„‡ƒ’’Ž‹‡†•‡’ƒ”ƒ–‡Ž›‹”‡•’‡…–‘ˆ‡ƒ…Š
‘ˆ ‹’—– –ƒš …”‡†‹– vizǤ 
Ȁ Š‡ƒ†•‘ˆȋ
Ȁ
Ȁ
ȌǤ —”–Š‡”ǡ–Š‡•ƒ‹†ˆ‘”—Žƒ•ŠƒŽŽ

Ȁ
Ȁ‡••ǫ ƒŽ•‘ „‡ ƒ’’Ž‹…ƒ„Ž‡ ˆ‘” ƒ’’‘”–‹‘‡– ‘ˆ ‡•• „‡–™‡‡ –Š‡
–”ƒ•ˆ‡”‘”ƒ†–”ƒ•ˆ‡”‡‡Ǥ
ŽŽ—•–”ƒ–‹‘ ǣ Š‡  „ƒŽƒ…‡• ‘ˆ –”ƒ•ˆ‡”‘”  ‹ –Š‡ –ƒ–‡ ‘ˆ
ƒŠƒ”ƒ•Š–”ƒ —†‡” 
ǡ 
 ƒ† 
 Š‡ƒ†• ƒ”‡ ͷ ŽƒŠǡ ͷ
ŽƒŠƒ†ͳͲŽƒŠ”‡•’‡…–‹˜‡Ž›Ǥ—”•—ƒ––‘ƒ•…Š‡‡‘ˆ†‡‡”‰‡”ǡ
 –”ƒ•ˆ‡”• ͸ͲΨ ‘ˆ ‹–• ƒ••‡–• –‘ –”ƒ•ˆ‡”‡‡ Ǥ ……‘”†‹‰Ž›ǡ –Š‡
ƒ‘—–‘ˆ–‘„‡–”ƒ•ˆ‡””‡†ˆ”‘–‘•ŠƒŽŽ„‡͸ͲΨ‘ˆʹͲ
ŽƒŠȋ–‘–ƒŽ•—‘ˆ
ǡ
ƒ†
…”‡†‹–Ȍǡ‹Ǥ‡ǤǡͳʹŽƒŠǤ
ͷǤ ‘™–‘†‡–‡”‹‡–Š‡ƒ‘—– Š‡–‘–ƒŽƒ‘—–‘ˆ–‘„‡–”ƒ•ˆ‡””‡†–‘–Š‡–”ƒ•ˆ‡”‡‡ȋ‹Ǥ‡Ǥǡ
‘ˆ–Šƒ–‹•–‘„‡–”ƒ•ˆ‡””‡† •—‘ˆ
ǡ
Ȁ
ƒ†
…”‡†‹–Ȍ•Š‘—Ž†‘–‡š…‡‡†–Š‡
–‘ –Š‡ –”ƒ•ˆ‡”‡‡ —†‡” ‡ƒ…Š ƒ‘—–‘ˆ–‘„‡–”ƒ•ˆ‡””‡†ǡƒ•†‡–‡”‹‡†—†‡”•—„Ǧ”—Ž‡
–ƒš Š‡ƒ† ȋ
Ȁ
Ȁ
Ȍ ȋͳȌ‘ˆ”—Ž‡Ͷͳ‘ˆ–Š‡
—Ž‡•ȏ”‡ˆ‡”͵ȋ…Ȍȋ‹Ȍƒ„‘˜‡ȐǤ‘™‡˜‡”ǡ
™Š‹Ž‡ϐ‹Ž‹‰‘ˆ 
Ȃ –Š‡ –”ƒ•ˆ‡”‘” •ŠƒŽŽ „‡ ƒ– Ž‹„‡”–› –‘ †‡–‡”‹‡ –Š‡ ƒ‘—– –‘
Ͳʹ„›–Š‡–”ƒ•ˆ‡”‘”ǫ „‡–”ƒ•ˆ‡””‡†—†‡”‡ƒ…Š–ƒšŠ‡ƒ†ȋ
ǡ
ǡ
Ȁ
Ȍ
™‹–Š‹ –Š‹• –‘–ƒŽ ƒ‘—–ǡ •—„Œ‡…– –‘ –Š‡  „ƒŽƒ…‡ ƒ˜ƒ‹Žƒ„Ž‡
™‹–Š–Š‡–”ƒ•ˆ‡”‘”—†‡”–Š‡…‘…‡”‡†–ƒšŠ‡ƒ†Ǥ
͸Ǥ  ‘”†‡” –‘ …ƒŽ…—Žƒ–‡ –Š‡ ……‘”†‹‰–‘•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ͳͺ‘ˆ–Š‡
…–ǡDzŠ‡”‡
ƒ‘—–‘ˆ–”ƒ•ˆ‡”ƒ„Ž‡ǡ–Š‡ –Š‡”‡ ‹• ƒ …Šƒ‰‡ ‹ –Š‡ …‘•–‹–—–‹‘ ‘ˆ ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ‘
ƒ’’‘”–‹‘‡–ˆ‘”—Žƒ—†‡” ƒ……‘—–‘ˆ•ƒŽ‡ǡ‡”‰‡”ǡ†‡‡”‰‡”ǡƒƒŽ‰ƒƒ–‹‘ǡŽ‡ƒ•‡‘”–”ƒ•ˆ‡”
’”‘˜‹•‘ –‘ ”—Ž‡ ͶͳȋͳȌ ‘ˆ –Š‡ ‘ˆ –Š‡ „—•‹‡•• ™‹–Š –Š‡ •’‡…‹ϐ‹… ’”‘˜‹•‹‘• ˆ‘” –”ƒ•ˆ‡” ‘ˆ

 —Ž‡• Šƒ• –‘ „‡ ƒ’’Ž‹‡† Ž‹ƒ„‹Ž‹–‹‡•ǡ–Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ„‡ƒŽŽ‘™‡†–‘–”ƒ•ˆ‡”
–‘ –Š‡ ——–‹Ž‹œ‡†  „ƒŽƒ…‡ –Š‡ ‹’—– –ƒš …”‡†‹– ™Š‹…Š ”‡ƒ‹• ——–‹Ž‹œ‡† ‹ Š‹• ‡Ž‡…–”‘‹…
‘ˆ –Š‡ –”ƒ•ˆ‡”‘”Ǥ ‘™‡˜‡”ǡ ‹– …”‡†‹– Ž‡†‰‡” –‘ •—…Š •‘Ž†ǡ ‡”‰‡†ǡ †‡‡”‰‡†ǡ ƒƒŽ‰ƒƒ–‡†ǡ
‹• ‘– …Ž‡ƒ” ƒ• –‘ ™Š‹…Š †ƒ–‡ Ž‡ƒ•‡† ‘” –”ƒ•ˆ‡””‡† „—•‹‡•• ‹ •—…Š ƒ‡” ƒ• ƒ› „‡
•ŠƒŽŽ „‡ ”‡Ž‡˜ƒ– –‘ …ƒŽ…—Žƒ–‡ ’”‡•…”‹„‡†Ǥdz
–Š‡ ƒ‘—– ‘ˆ ——–‹Ž‹œ‡† 
„ƒŽƒ…‡‘ˆ–”ƒ•ˆ‡”‘”Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 705

—”–Š‡”ǡ•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡Ͷͳ‘ˆ–Š‡
—Ž‡•’”‡•…”‹„‡•–Šƒ–
–Š‡”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽϐ‹Ž‡–Š‡†‡–ƒ‹Ž•‹ 
ǦͲʹˆ‘”
–”ƒ•ˆ‡”‘ˆ——–‹Ž‹œ‡†‹’—––ƒš…”‡†‹–Ž›‹‰‹Š‹•‡Ž‡…–”‘‹……”‡†‹–
Ž‡†‰‡”–‘–Š‡–”ƒ•ˆ‡”‡‡Ǥ…‘Œ‘‹–”‡ƒ†‹‰‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ
•‡…–‹‘ͳͺ‘ˆ–Š‡
…–ƒŽ‘‰™‹–Š•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡Ͷͳ‘ˆ–Š‡

—Ž‡•™‘—Ž†‹’Ž›–Šƒ––Š‡ƒ’’‘”–‹‘‡–ˆ‘”—Žƒ•ŠƒŽŽ„‡
ƒ’’Ž‹‡† ‘ –Š‡  „ƒŽƒ…‡ ‘ˆ –Š‡ –”ƒ•ˆ‡”‘” ƒ• ƒ˜ƒ‹Žƒ„Ž‡ ‹
‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‘–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ 
ȂͲʹ
͹Ǥ Š‹…Š †ƒ–‡ •ŠƒŽŽ „‡ ”‡Ž‡˜ƒ–
–‘ …ƒŽ…—Žƒ–‡ –Š‡ ”ƒ–‹‘ ‘ˆ ˜ƒŽ—‡
‘ˆƒ••‡–•ǡƒ•’”‡•…”‹„‡†‹–Š‡
’”‘˜‹•‘ –‘ ”—Ž‡ Ͷͳ ȋͳȌ ‘ˆ –Š‡

—Ž‡•ǡʹͲͳ͹ǫ –Š‡ƒ’’‘‹–‡††ƒ–‡dzǤŠ‡•ƒ‹†Ž‡‰ƒŽ’”‘˜‹•‹‘ƒ’’‡ƒ”•–‘‹†‹…ƒ–‡
„›–Š‡–”ƒ•ˆ‡”‘”Ǥ
……‘”†‹‰ –‘ •‡…–‹‘ ʹ͵ʹ ȋ͸Ȍ ‘ˆ –Š‡ ‘’ƒ‹‡• …–ǡ ʹͲͳ͵ǡ DzŠ‡
•…Š‡‡—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ…Ž‡ƒ”Ž›‹†‹…ƒ–‡ƒƒ’’‘‹–‡††ƒ–‡
ˆ”‘™Š‹…Š‹–•ŠƒŽŽ„‡‡ˆˆ‡…–‹˜‡ƒ†–Š‡•…Š‡‡•ŠƒŽŽ„‡†‡‡‡†
–‘ „‡ ‡ˆˆ‡…–‹˜‡ ˆ”‘ •—…Š †ƒ–‡ ƒ† ‘– ƒ– ƒ †ƒ–‡ •—„•‡“—‡– –‘
–Šƒ––Š‡Dzƒ’’‘‹–‡††ƒ–‡‘ˆ†‡‡”‰‡”dz‹•–Š‡†ƒ–‡ˆ”‘™Š‹…Š–Š‡
•…Š‡‡ ˆ‘” †‡‡”‰‡” …‘‡• ‹–‘ ˆ‘”…‡ ƒ† ‹– ‹• •’‡…‹ϐ‹‡† ‹ –Š‡
”‡•’‡…–‹˜‡ •…Š‡‡ ‘ˆ †‡‡”‰‡”Ǥ Š‡”‡ˆ‘”‡ǡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ
ƒ’’‘”–‹‘‡– ‘ˆ  —†‡” ”—Ž‡ •—„Ǧ”—Ž‡ ȋͳȌ ‘ˆ ”—Ž‡ Ͷͳ ‘ˆ –Š‡

—Ž‡•ǡ–Š‡”ƒ–‹‘‘ˆ–Š‡˜ƒŽ—‡‘ˆƒ••‡–••Š‘—Ž†„‡–ƒ‡ƒ•‘
–Š‡Dzƒ’’‘‹–‡††ƒ–‡‘ˆ†‡‡”‰‡”dzǤ
 ‘–Š‡” ™‘”†•ǡ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ ƒ’’‘”–‹‘‡– ‘ˆ  —†‡”
•—„Ǧ”—Ž‡ ȋͳȌ ‘ˆ ”—Ž‡ Ͷͳ ‘ˆ –Š‡ 
 —Ž‡•ǡ ™Š‹Ž‡ –Š‡ ”ƒ–‹‘ ‘ˆ –Š‡
˜ƒŽ—‡ ‘ˆ ƒ••‡–• •Š‘—Ž† „‡ –ƒ‡ ƒ• ‘ –Š‡ Dzƒ’’‘‹–‡† †ƒ–‡ ‘ˆ
†‡‡”‰‡”dzǡ–Š‡•ƒ‹†”ƒ–‹‘‹•–‘„‡ƒ’’Ž‹‡†‘–Š‡„ƒŽƒ…‡‘ˆ–Š‡
–”ƒ•ˆ‡”‘”‘–Š‡†ƒ–‡‘ˆϐ‹Ž‹‰ 
ǦͲʹ–‘…ƒŽ…—Žƒ–‡–Š‡
ƒ‘—––‘–”ƒ•ˆ‡”ƒ„Ž‡Ǥ

The registered person should furnish the details of change in constitution on the common portal and submit
ƒ…‡”–‹ϐ‹…ƒ–‡ˆ”‘’”ƒ…–‹…‹‰Šƒ”–‡”‡†……‘—–Ȁ‘•–……‘—–ƒ–…‡”–‹ˆ›‹‰–Šƒ––Š‡…Šƒ‰‡‹…‘•–‹–—–‹‘
Šƒ•„‡‡†‘‡™‹–Šƒ•’‡…‹ϐ‹…’”‘˜‹•‹‘ˆ‘”–”ƒ•ˆ‡”‘ˆŽ‹ƒ„‹Ž‹–‹‡•Ǥ’‘ƒ……‡’–ƒ…‡‘ˆ•—…Š†‡–ƒ‹Ž•„›–Š‡
transferee on the common portal, the unutilized ITC gets credited to his electronic credit ledger. The
transferee should record the inputs and capital goods so transferred in his books of account.Transfer of ITC
on obtaining separate registrations for multiple places of business within a State/ Union Territory [Rule
41A of CGST Rules]

‡…–‹‘ ʹͷ ‡ƒ„Ž‡• ƒ –ƒš’ƒ›‡” –‘ ‘„–ƒ‹ •‡’ƒ”ƒ–‡ ”‡‰‹•–”ƒ–‹‘• ˆ‘” —Ž–‹’Ž‡ ’Žƒ…‡• ‘ˆ „—•‹‡•• ‹ ƒ –ƒ–‡Ȁ ‹‘
–‡””‹–‘”›Š‡”‡‰‹•–‡”‡†’‡”•‘ȋ–”ƒ•ˆ‡”‘”ȌǡŠƒ˜‹‰•‡’ƒ”ƒ–‡”‡‰‹•–”ƒ–‹‘•ˆ‘”—Ž–‹’Ž‡’Žƒ…‡•‘ˆ„—•‹‡••™‹–Š‹
ƒ–ƒ–‡Ȁ‹‘‡””‹–‘”›ǡ…ƒ–”ƒ•ˆ‡”–Š‡——–‹Ž‹•‡†ȋ™Š‘ŽŽ›‘”’ƒ”–Ž›ȌŽ›‹‰‹Š‹•‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”–‘
ƒ›‘”ƒŽŽ‘ˆ–Š‡‡™Ž›”‡‰‹•–‡”‡†’Žƒ…‡ȋ•Ȍ‘ˆ„—•‹‡••‹–Š‡”ƒ–‹‘‘ˆ–Š‡˜ƒŽ—‡‘ˆƒ••‡–•Š‡Ž†„›–Š‡ƒ––Š‡–‹‡‘ˆ
”‡‰‹•–”ƒ–‹‘Ǥ‡”‡ǡ–Š‡Ǯ˜ƒŽ—‡‘ˆƒ••‡–•ǯ‡ƒ•–Š‡˜ƒŽ—‡‘ˆ–Š‡‡–‹”‡ƒ••‡–•‘ˆ–Š‡„—•‹‡••‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”
Šƒ•„‡‡ƒ˜ƒ‹Ž‡†–Š‡”‡‘‘”‘–Ǥ
Š‡”‡‰‹•–‡”‡†’‡”•‘•Š‘—Ž†ˆ—”‹•Š–Š‡’”‡•…”‹„‡††‡–ƒ‹Ž•‘–Š‡…‘‘’‘”–ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆ͵Ͳ†ƒ›•ˆ”‘
‘„–ƒ‹‹‰•—…Š•‡’ƒ”ƒ–‡”‡‰‹•–”ƒ–‹‘•Ǥ’‘ƒ……‡’–ƒ…‡‘ˆ•—…Š†‡–ƒ‹Ž•„›–Š‡‡™Ž›”‡‰‹•–‡”‡†’‡”•‘ȋ–”ƒ•ˆ‡”‡‡Ȍ
‘–Š‡…‘‘’‘”–ƒŽǡ–Š‡——–‹Ž‹•‡†‰‡–•…”‡†‹–‡†–‘Š‹•‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”Ǥ

GOODS SENT TO JOB WORKER

Žƒ”‰‡—„‡”‘ˆ‹†—•–”‹‡•†‡’‡†—’‘‘—–•‹†‡•—’’‘”–ˆ‘”…‘’Ž‡–‹‰ƒ—ˆƒ…–—”‹‰ƒ…–‹˜‹–›Ǥ
‡…–‹‘ʹȋ͸ͺȌǣDz ‘„‘”dz‡ƒ•ƒ›–”‡ƒ–‡–‘”’”‘…‡••—†‡”–ƒ‡„›ƒ’‡”•‘‘‰‘‘†•„‡Ž‘‰‹‰–‘ƒ‘–Š‡”
”‡‰‹•–‡”‡†’‡”•‘ƒ†–Š‡‡š’”‡••‹‘“job worker”•ŠƒŽŽ„‡…‘•–”—‡†ƒ……‘”†‹‰Ž›Ǥ
 706 Lesson 14 Ȉ EP-TL

Š‡’‡”•‘™Š‘—†‡”–ƒ‡•–Š‡Œ‘„‘ˆ–”‡ƒ–‡–‘”’”‘…‡••ˆ‘”ƒ‘–Š‡”’‡”•‘‹•…ƒŽŽ‡†Œ‘„™‘”‡”ǤŠ‡‘™‡”
‘ˆ–Š‡‰‘‘†• ™Š‘ ‡‰ƒ‰‡• –Š‡Œ‘„™‘”‡” ‹• …ƒŽŽ‡† ”‹…‹’ƒŽǤ’—–•ƒ†…ƒ’‹–ƒŽ ‰‘‘†• …ƒ„‡ •‡––‘ƒŒ‘„
™‘”‡”ƒ†–Š‡”‹…‹’ƒŽ…ƒƒ˜ƒ‹Ž‘–Š‡ǤŠ‡‰‘‘†•…ƒ„‡•‡–†‹”‡…–Ž›ˆ”‘–Š‡Œ‘„™‘”‡”ǯ•’Žƒ…‡
™‹–Š‘—–„”‹‰‹‰–Š‡–‘–Š‡’”‡‹•‡•‘ˆ–Š‡”‹…‹’ƒŽǤ

’—–••Š‘—Ž†„‡„”‘—‰Š–„ƒ…–‘–Š‡”‹…‹’ƒŽƒŽ–‡”ƒ–‹˜‡Ž›•‘Ž†ˆ”‘–Š‡Œ‘„™‘”‡”ǯ•’”‡‹•‡•‘„‡ŠƒŽˆ‘ˆ–Š‡
”‹…‹’ƒŽǣ

Ȉ ™‹–Š‹‘‡›‡ƒ”‹…ƒ•‡‘ˆ‘”ƒŽ‰‘‘†•

Ȉ ƒ†™‹–Š‹͵›‡ƒ”•‹…ƒ•‡‘ˆ…ƒ’‹–ƒŽ‰‘‘†•

Š‡’‡”‹‘† ‘ˆͳ ›‡ƒ” ƒ† ͵ ›‡ƒ”• ƒ›ǡ ‘ •—ˆϐ‹…‹‡–…ƒ—•‡ „‡‹‰ •Š‘™ǡ „‡ ‡š–‡†‡†„› –Š‡ …‘‹••‹‘‡”ˆ‘” ƒ
ˆ—”–Š‡”’‡”‹‘†‘–‡š…‡‡†‹‰ͳ›‡ƒ”ƒ†ʹ›‡ƒ”•”‡•’‡…–‹˜‡Ž›Ǥ
ˆ–Š‡‰‘‘†•ƒ”‡‘–•‘Ž†Ȁ„”‘—‰Š–„ƒ…™‹–Š‹–Š‡•–‹’—Žƒ–‡†–‹‡ǡ–Š‡•—’’Ž›„‡–™‡‡–Š‡”‹…‹’ƒŽƒ†–Š‡Œ‘„
™‘”‡”‹•–”‡ƒ–‡†ƒ•Dz†‡‡‡†•—’’Ž›dzƒ†–ƒš‹•’ƒ›ƒ„Ž‡–Š‡”‡‘„›–Š‡”‹…‹’ƒŽǤ
‘—Ž†•ƒ††‹‡•ǡŒ‹‰•ƒ†ϐ‹š–—”‡•ǡ‘”–‘‘Ž••‡–‘—––‘ƒŒ‘„™‘”‡”ˆ‘”Œ‘„™‘”‡‡†‘–„‡„”‘—‰Š–™‹–Š‹͵›‡ƒ”•ǯ
–‹‡ȋƒ’‹–ƒŽ
‘‘†•‡š…Ž—†‡•‘—Ž†•ƒ††‹‡•ǡŒ‹‰•ƒ†ϐ‹š–—”‡•ǡ‘”–‘‘Ž•ǤȌ
‡…–‹‘ͳͶ͵‘ˆ
…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ–ƒ”‹…‹’ƒŽ—†‡”‹–‹ƒ–‹‘ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡
’”‡•…”‹„‡†…ƒ•‡†‹’—–•‘”…ƒ’‹–ƒŽ‰‘‘†•–‘ƒŒ‘„™‘”‡”™‹–Š‘—–’ƒ›‡–‘ˆ–ƒšˆ‘”ˆ—”–Š‡”’”‘…‡••‘”–”‡ƒ–‡–
ƒ†ˆ”‘–Š‡”‡•—„•‡“—‡–Ž›–‘ƒ‘–Š‡”Œ‘„™‘”‡”ȋ•Ȍƒ†•ŠƒŽŽ‡‹–Š‡”„”‹‰„ƒ…•—…Š‹’—–•Ȁ…ƒ’‹–ƒŽ‰‘‘†•ƒˆ–‡”
…‘’Ž‡–‹‘‘ˆŒ‘„™‘”‘”‘–Š‡”™‹•‡ǡ™‹–Š‹ͳ›‡ƒ”Ȁ͵›‡ƒ”•‘ˆ–Š‡‹”„‡‹‰•‡–‘—–ǡ‘”•—’’Ž›•—…Š‹’—–•Ȁ…ƒ’‹–ƒŽ
‰‘‘†•ƒˆ–‡”…‘’Ž‡–‹‘‘ˆŒ‘„™‘”‘”‘–Š‡”™‹•‡™‹–Š‹ͳ›‡ƒ”Ȁ͵›‡ƒ”•‘ˆ–Š‡‹”„‡‹‰•‡–‘—–ǡˆ”‘–Š‡’Žƒ…‡‘ˆ
„—•‹‡••‘ˆƒŒ‘„™‘”‡”‘’ƒ›‡–‘ˆ–ƒš™‹–Š‹†‹ƒ‘”™‹–Š‘”™‹–Š‘—–’ƒ›‡–‘ˆ–ƒšˆ‘”‡š’‘”–Ǥ
”‘˜‹†‡†–Šƒ––Š‡’”‹…‹’ƒŽ•ŠƒŽŽ‘–•—’’Ž›–Š‡‰‘‘†•ˆ”‘–Š‡’Žƒ…‡‘ˆ„—•‹‡••‘ˆƒŒ‘„™‘”‡”‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…Žƒ—•‡—Ž‡••–Š‡•ƒ‹†’”‹…‹’ƒŽ†‡…Žƒ”‡•–Š‡’Žƒ…‡‘ˆ„—•‹‡••‘ˆ–Š‡Œ‘„™‘”‡”ƒ•Š‹•ƒ††‹–‹‘ƒŽ
’Žƒ…‡‘ˆ„—•‹‡••‡š…‡’–‹ƒ…ƒ•‡Ȃ
ȋ‹Ȍ ™Š‡”‡–Š‡Œ‘„™‘”‡”‹•”‡‰‹•–‡”‡†—†‡”•‡…–‹‘ʹͷǢ‘”

ȋ‹‹Ȍ ™Š‡”‡–Š‡’”‹…‹’ƒŽ‹•‡‰ƒ‰‡†‹–Š‡•—’’Ž›‘ˆ•—…Š‰‘‘†•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”Ǥ

Dz”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡’‡”‹‘†‘ˆ‘‡›‡ƒ”ƒ†–Š”‡‡›‡ƒ”•ƒ›ǡ‘•—ˆϐ‹…‹‡–…ƒ—•‡„‡‹‰•Š‘™ǡ„‡‡š–‡†‡†„›
–Š‡‘‹••‹‘‡”ˆ‘”ƒˆ—”–Š‡”’‡”‹‘†‘–‡š…‡‡†‹‰‘‡›‡ƒ”ƒ†–™‘›‡ƒ”•”‡•’‡…–‹˜‡Ž›Ǥdz
Š‡”‡•’‘•‹„‹Ž‹–›ˆ‘”‡‡’‹‰’”‘’‡”ƒ……‘—–•ˆ‘”–Š‡‹’—–•‘”…ƒ’‹–ƒŽ‰‘‘†••ŠƒŽŽŽ‹‡™‹–Š–Š‡”‹…‹’ƒŽǤ
›™ƒ•–‡ƒ†•…”ƒ’‰‡‡”ƒ–‡††—”‹‰–Š‡Œ‘„™‘”ƒ›„‡•—’’Ž‹‡†„›–Š‡Œ‘„™‘”‡”†‹”‡…–Ž›ˆ”‘Š‹•’Žƒ…‡‘ˆ
„—•‹‡••‘’ƒ›‡–‘ˆ–ƒšǡ‹ˆ•—…ŠŒ‘„™‘”‡”‹•”‡‰‹•–‡”‡†ǡ‘”„›–Š‡”‹…‹’ƒŽǡ‹ˆ–Š‡Œ‘„™‘”‡”‹•‘–”‡‰‹•–‡”‡†Ǥ
‘”–Š‡’—”’‘•‡•‘ˆŒ‘„™‘”ǡ‹’—–‹…Ž—†‡•‹–‡”‡†‹ƒ–‡‰‘‘†•ƒ”‹•‹‰ˆ”‘ƒ›–”‡ƒ–‡–‘”’”‘…‡••…ƒ””‹‡†‘—–
‘–Š‡‹’—–•„›–Š‡”‹…‹’ƒŽ‘”–Š‡Œ‘„™‘”‡”Ǥ

Taking ITC in respect of inputs and capital goods sent for job work [Section 19]

‡…–‹‘ͳͻ‘ˆ–Š‡
…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ––Š‡”‹…‹’ƒŽ•ŠƒŽŽǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›
„‡’”‡•…”‹„‡†ǡ„‡ƒŽŽ‘™‡†‹’—––ƒš…”‡†‹–‘‹’—–••‡––‘ƒŒ‘„™‘”‡”ˆ‘”Œ‘„™‘”Ǥ
Ž–Š‘—‰Š‡…–‹‘ͳ͸‘ˆ–Š‡
…–ǡʹͲͳ͹•’‡…‹ϐ‹…ƒŽŽ›•–ƒ–‡•–Šƒ–™‹ŽŽ„‡’”‘˜‹†‡†‘Ž›™Š‡‰‘‘†•ƒ”‡ƒ…–—ƒŽŽ›
”‡…‡‹˜‡†ǡ„—–—†‡” ‘„™‘”–Š‹•…‘†‹–‹‘‹•‡š‡’–‡†ƒ†…ƒ„‡ƒ˜ƒ‹Ž‡†‡˜‡‹ˆ‹’—–•‘”…ƒ’‹–ƒŽ‰‘‘†•ƒ”‡
†‹”‡…–Ž›•‡––‘–Š‡Œ‘„™‘”‡”™‹–Š‘—–„‡‹‰ϐ‹”•–„”‘—‰Š––‘–Š‡’Žƒ…‡‘ˆ„—•‹‡••‘ˆ”‹…‹’ƒŽǤ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 707

ƒ‹‰‹”‡•’‡…–‘ˆ‹’—–•ƒ†…ƒ’‹–ƒŽ‰‘‘†••‡–‘Œ‘„™‘”ǣ
ȋͳȌ Š‡”‹…‹’ƒŽ•ŠƒŽŽǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ„‡ƒŽŽ‘™‡†‹’—––ƒš
…”‡†‹–‘‹’—–••‡––‘ƒŒ‘„™‘”‡”ˆ‘”Œ‘„™‘”Ǥ

ȋʹȌ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͳ͸ǡ–Š‡”‹…‹’ƒŽ•ŠƒŽŽ„‡
‡–‹–Ž‡†–‘–ƒ‡…”‡†‹–‘ˆ‹’—––ƒš‘‹’—–•‡˜‡‹ˆ–Š‡‹’—–•ƒ”‡†‹”‡…–Ž›•‡––‘ƒŒ‘„™‘”‡”ˆ‘”Œ‘„™‘”
™‹–Š‘—–„‡‹‰ϐ‹”•–„”‘—‰Š––‘Š‹•’Žƒ…‡‘ˆ„—•‹‡••Ǥ

ȋ͵Ȍ Š‡”‡–Š‡‘”ƒŽ‰‘‘†••‡–ˆ‘”Œ‘„™‘”ƒ”‡‘–”‡…‡‹˜‡†„ƒ…„›–Š‡’”‹…‹’ƒŽƒˆ–‡”…‘’Ž‡–‹‘‘ˆŒ‘„
™‘”‘”‘–Š‡”™‹•‡‘”ƒ”‡‘–•—’’Ž‹‡†ˆ”‘–Š‡’Žƒ…‡‘ˆ„—•‹‡••‘ˆ–Š‡Œ‘„™‘”‡”‹ƒ……‘”†ƒ…‡™‹–Š
…Žƒ—•‡ ȋƒȌ ‘” …Žƒ—•‡ ȋ„Ȍ ‘ˆ •—„Ǧ•‡…–‹‘ ȋͳȌ ‘ˆ •‡…–‹‘ ͳͶ͵ ™‹–Š‹ ‘‡ ›‡ƒ” ‘ˆ „‡‹‰ •‡– ‘—–ǡ ‹– •ŠƒŽŽ „‡
†‡‡‡†–Šƒ–•—…Š‹’—–•Šƒ†„‡‡•—’’Ž‹‡†„›–Š‡’”‹…‹’ƒŽ–‘–Š‡Œ‘„™‘”‡”‘–Š‡†ƒ›™Š‡–Š‡•ƒ‹†
‹’—–•™‡”‡•‡–‘—–ǣ

 Provided that where the inputs are sent directly to a job worker, the period of one year shall be
counted from the date of receipt of inputs by the job worker.

ȋͶȌ Š‡’”‹…‹’ƒŽ•ŠƒŽŽǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ„‡ƒŽŽ‘™‡†‹’—––ƒš
…”‡†‹–‘…ƒ’‹–ƒŽ‰‘‘†••‡––‘ƒŒ‘„™‘”‡”ˆ‘”Œ‘„™‘”Ǥ

ȋͷȌ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͳ͸ǡ–Š‡’”‹…‹’ƒŽ•ŠƒŽŽ„‡
‡–‹–Ž‡† –‘ –ƒ‡ …”‡†‹– ‘ˆ ‹’—– –ƒš ‘ …ƒ’‹–ƒŽ ‰‘‘†• ‡˜‡ ‹ˆ –Š‡ …ƒ’‹–ƒŽ ‰‘‘†• ƒ”‡ †‹”‡…–Ž› •‡– –‘ ƒ Œ‘„
™‘”‡”ˆ‘”Œ‘„™‘”™‹–Š‘—–„‡‹‰ϐ‹”•–„”‘—‰Š––‘Š‹•’Žƒ…‡‘ˆ„—•‹‡••Ǥ

ȋ͸Ȍ Š‡”‡–Š‡…ƒ’‹–ƒŽ‰‘‘†••‡–ˆ‘”Œ‘„™‘”ƒ”‡‘–”‡…‡‹˜‡†„ƒ…„›–Š‡’”‹…‹’ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š”‡‡
›‡ƒ”•‘ˆ„‡‹‰•‡–‘—–ǡ‹–•ŠƒŽŽ„‡†‡‡‡†–Šƒ–•—…Š…ƒ’‹–ƒŽ‰‘‘†•Šƒ†„‡‡•—’’Ž‹‡†„›–Š‡’”‹…‹’ƒŽ–‘
–Š‡Œ‘„™‘”‡”‘–Š‡†ƒ›™Š‡–Š‡•ƒ‹†…ƒ’‹–ƒŽ‰‘‘†•™‡”‡•‡–‘—–Ǥ

 ”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡…ƒ’‹–ƒŽ‰‘‘†•ƒ”‡•‡–†‹”‡…–Ž›–‘ƒŒ‘„™‘”‡”ǡ–Š‡’‡”‹‘†‘ˆ–Š”‡‡›‡ƒ”••ŠƒŽŽ„‡
…‘—–‡†ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ…ƒ’‹–ƒŽ‰‘‘†•„›–Š‡Œ‘„™‘”‡”Ǥ

ȋ͹Ȍ ‘–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘”•—„Ǧ•‡…–‹‘ȋ͸Ȍ•ŠƒŽŽƒ’’Ž›–‘‘—Ž†•ƒ††‹‡•ǡŒ‹‰•ƒ†ϐ‹š–—”‡•ǡ
‘”–‘‘Ž••‡–‘—––‘ƒŒ‘„™‘”‡”ˆ‘”Œ‘„™‘”Ǥ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••‡…–‹‘ǡDz’”‹…‹’ƒŽdz‡ƒ•–Š‡’‡”•‘”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͶ͵Ǥ
••‡–‹ƒŽŽ›ǡ‹–ǯ•‹’‡”ƒ–‹˜‡–‘‘–‡–Šƒ––Š‡”‹…‹’ƒŽ…ƒ…Žƒ‹‹’—–•Ȁƒ’‹–ƒŽ
‘‘†•ƒ†…ƒ•‡†–Š‡•‡–‘
–Š‡ ‘„‘”‡”ˆ‘”ˆ—”–Š‡”’”‘…‡••‹‰™‹–Š‘—–’ƒ›‡–‘ˆ
—†‡”–Š‡…‘˜‡”‘ˆƒ’”‡•…”‹„‡†…ŠƒŽŽƒ„—–™Š‡”‡
–Š‡•‡ƒ”‡‘–‡‹–Š‡”•‘Ž†„›–Š‡Œ‘„™‘”‡””‡–—”‡†„›–Š‡Œ‘„™‘”‡”™‹–Š‹ͳ”͵‡ƒ”•ƒ•ƒ„‘˜‡ǡ–Š‡–Š‡
•—’’Ž›„‡–™‡‡–Š‡‹•…‘•–”—‡†ƒ•‡‡‡†—’’Ž›ƒ†–ƒš™‹–Š‹–‡”‡•–Šƒ•–‘„‡†‹•…Šƒ”‰‡†„›–Š‡•—’’Ž‹‡”Ǥ

Input Tax Credit Rules

—Ž‡͵͸ǣ‘…—‡–ƒ”›”‡“—‹”‡‡–•ƒ†…‘†‹–‹‘•ˆ‘”…Žƒ‹‹‰‹’—––ƒš…”‡†‹–
ȋͳȌ Š‡‹’—––ƒš…”‡†‹–•ŠƒŽŽ„‡ƒ˜ƒ‹Ž‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘ǡ‹…Ž—†‹‰–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”ǡ‘–Š‡
„ƒ•‹•‘ˆƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰†‘…—‡–•ǡƒ‡Ž›ǡǦ
ȋƒȌ ƒ‹˜‘‹…‡‹••—‡†„›–Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ
•‡…–‹‘͵ͳǢ
ȋ„Ȍ ƒ‹˜‘‹…‡‹••—‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ…Žƒ—•‡ȋˆȌ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳǡ
•—„Œ‡…––‘–Š‡’ƒ›‡–‘ˆ–ƒšǢ
ȋ…Ȍ ƒ†‡„‹–‘–‡‹••—‡†„›ƒ•—’’Ž‹‡”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͵ͶǢ
ȋ†Ȍ ƒ „‹ŽŽ ‘ˆ ‡–”› ‘” ƒ› •‹‹Žƒ” †‘…—‡– ’”‡•…”‹„‡† —†‡” –Š‡ —•–‘• …–ǡ ͳͻ͸ʹ ‘” ”—Ž‡• ƒ†‡
–Š‡”‡—†‡”ˆ‘”–Š‡ƒ••‡••‡–‘ˆ‹–‡‰”ƒ–‡†–ƒš‘‹’‘”–•Ǣ
ȋ‡Ȍ ƒ ’—– ‡”˜‹…‡ ‹•–”‹„—–‘” ‹˜‘‹…‡ ‘” ’—– ‡”˜‹…‡ ‹•–”‹„—–‘” …”‡†‹– ‘–‡ ‘” ƒ› †‘…—‡–
‹••—‡†„›ƒ’—–‡”˜‹…‡‹•–”‹„—–‘”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ”—Ž‡ȋͳȌ‘ˆ”—Ž‡ͷͶǤ
 708 Lesson 14 Ȉ EP-TL

ȋʹȌ ’—––ƒš…”‡†‹–•ŠƒŽŽ„‡ƒ˜ƒ‹Ž‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘‘Ž›‹ˆƒŽŽ–Š‡ƒ’’Ž‹…ƒ„Ž‡’ƒ”–‹…—Žƒ”•ƒ••’‡…‹ϐ‹‡†‹
–Š‡’”‘˜‹•‹‘•‘ˆŠƒ’–‡”ƒ”‡…‘–ƒ‹‡†‹–Š‡•ƒ‹††‘…—‡–ǡƒ†–Š‡”‡Ž‡˜ƒ–‹ˆ‘”ƒ–‹‘ǡƒ•…‘–ƒ‹‡†
‹–Š‡•ƒ‹††‘…—‡–ǡ‹•ˆ—”‹•Š‡†‹ ‘”
Ǧʹ„›•—…Š’‡”•‘Ǥ

 ”‘˜‹†‡†–Šƒ–‹ˆ–Š‡•ƒ‹††‘…—‡–†‘‡•‘–…‘–ƒ‹ƒŽŽ–Š‡•’‡…‹ϐ‹‡†’ƒ”–‹…—Žƒ”•„—–…‘–ƒ‹•–Š‡†‡–ƒ‹Ž•‘ˆ
–Š‡ƒ‘—–‘ˆ–ƒš…Šƒ”‰‡†ǡ†‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ǡ–‘–ƒŽ˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”
„‘–Šǡ
‘ˆ–Š‡•—’’Ž‹‡”ƒ†”‡…‹’‹‡–ƒ†’Žƒ…‡‘ˆ•—’’Ž›‹…ƒ•‡‘ˆ‹–‡”Ǧ–ƒ–‡•—’’Ž›ǡ‹’—––ƒš…”‡†‹–
ƒ›„‡ƒ˜ƒ‹Ž‡†„›•—…Š”‡‰‹•–‡”‡†’‡”•‘Ǥ

ȋ͵Ȍ ‘ ‹’—– –ƒš …”‡†‹– •ŠƒŽŽ „‡ ƒ˜ƒ‹Ž‡† „› ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ‹ ”‡•’‡…– ‘ˆ ƒ› –ƒš –Šƒ– Šƒ• „‡‡ ’ƒ‹† ‹
’—”•—ƒ…‡ ‘ˆ ƒ› ‘”†‡” ™Š‡”‡ ƒ› †‡ƒ† Šƒ• „‡‡ …‘ϐ‹”‡† ‘ ƒ……‘—– ‘ˆ ƒ› ˆ”ƒ—†ǡ ™‹ŽŽˆ—Ž
‹••–ƒ–‡‡–‘”•—’’”‡••‹‘‘ˆˆƒ…–•Ǥ

INPUT SERVICE DISTRIBUTOR

…‘’ƒ›ƒ›Šƒ˜‡ƒ—„‡”‘ˆ—‹–•ƒ†–Š‡
’ƒ‹†„›‹–‘‹’—–•‡”˜‹…‡•”‡…‡‹˜‡†…ƒ„‡†‹•–”‹„—–‡†–‘–Š‡
„‡‡ϐ‹…‹ƒ”›—‹–•‘–Š‡„ƒ•‹•‘ˆ–Š‡‹”’”‡˜‹‘—•›‡ƒ”–—”‘˜‡”ǤŠ‡‘ˆϐ‹…‡‘ˆ–Š‡…‘’ƒ›™Š‹…Š†‹•–”‹„—–‡•–Š‡…”‡†‹–
‹•…ƒŽŽ‡†‹’—–•‡”˜‹…‡†‹•–”‹„—–‘”Ǥ

 ‹˜‘‹…‡ ‹••—‡† „› –Š‡ •—’’Ž‹‡” ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Š ‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͵ͳǢ

An invoice issued in accordance with the Provisions of section 31(3)(f);

Required Documents
for availing the Input
A debit note Issued by a supplier in accordance with the provisions of
Tax Credit including the
section 34;
Input Service Distributor

A bill of entry or any similar document prescribed under the Customs

Act, 1962 or rules made thereunder for the assessment of integrated tax
on imports;

An Input Service Distributor in voice or Input Service Distributor

credit note or any document issued by an Input Service Distributor in
accordance with the provisions of sub-rule (1)of rule 54.
These documents shall
be finished in
E-FORM GSTR-2

‡…–‹‘ʹȋ͸ͳȌǣDz’—–‡”˜‹…‡‹•–”‹„—–‘”dz‡ƒ•ƒ‘ˆϐ‹…‡‘ˆ–Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™Š‹…Š”‡…‡‹˜‡•
–ƒš‹˜‘‹…‡•‹••—‡†—†‡”‡…–‹‘͵ͳ–‘™ƒ”†•–Š‡”‡…‡‹’–‘ˆ‹’—–•‡”˜‹…‡•ƒ†‹••—‡•ƒ’”‡•…”‹„‡††‘…—‡–ˆ‘”
–Š‡’—”’‘•‡•‘ˆ†‹•–”‹„—–‹‰–Š‡…”‡†‹–‘ˆ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ‹–‡‰”ƒ–‡†–ƒš‘”‹‘–‡””‹–‘”›–ƒš’ƒ‹†‘–Š‡•ƒ‹†
•‡”˜‹…‡•–‘ƒ•—’’Ž‹‡”‘ˆ–ƒšƒ„Ž‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠŠƒ˜‹‰–Š‡•ƒ‡‡”ƒ‡–……‘—–—„‡”ƒ•–Šƒ–‘ˆ
–Š‡•ƒ‹†‘ˆϐ‹…‡Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 709

Illustration 7

–†Ǥǡ•‡†•Š‹”–•–‘‹–ǯ•Œ‘„™‘”‡”•ˆ‘”ϐ‹š‹‰–Š‡…‘ŽŽƒ”ǡ‹„ƒ–…Š‡•ƒ†ƒ„ƒ–…Š™ƒ••‡–‘ͳͶ–Š —Ž›ǡ
ʹͲͳ͹ǤŠ‡…‘ŽŽƒ”•™‡”‡ϐ‹š‡†ƒ†–Š‡Ǧ•Š‹”–•™‡”‡•‡–„ƒ…–‘–Š‡”‹…‹’ƒŽ‘͵ͳ•–ƒ›ǡʹͲͳͻǤ
–Š‹•…ƒ•‡ǡ•‹…‡–Š‡‰‘‘†•™‡”‡‘–”‡–—”‡†–‘–Š‡”‹…‹’ƒŽ„›–Š‡Œ‘„™‘”‡”ƒˆ–‡”…‘’Ž‡–‹‘‘ˆ–Š‡™‘”
™‹–Š‹‘‡›‡ƒ”‘ˆ‹–„‡‹‰•‡–„ƒ…ǡ–Š‡•—’’Ž›„‡–™‡‡–Š‡’”‹…‹’ƒŽƒ†–Š‡Œ‘„™‘”‡”™‘—Ž†„‡ƒ†‡‡‡†
•—’’Ž›ǡƒ†Š‡…‡–ƒš™‘—Ž†„‡‡‡†–‘„‡’ƒ‹†ƒŽ‘‰™‹–Šƒ’’Ž‹…ƒ„Ž‡‹–‡”‡•–Ǥ
Ž•‘ǡ ‹ •—…Š ƒ …ƒ•‡ǡ ™Š‡ –Š‡ ‰‘‘†• ƒ”‡ ”‡–—”‡† „› –Š‡ Œ‘„ ™‘”‡” –‘ –Š‡ ”‹…‹’ƒŽǡ –Šƒ– ƒ‰ƒ‹ ™‘—Ž† „‡
…‘•–”—‡†ƒ•ƒ•‡’ƒ”ƒ–‡supply.

Manner of distribution of credit by Input Service Distributor [Section 20]

ȋͳȌ Š‡ ’—– ‡”˜‹…‡ ‹•–”‹„—–‘” •ŠƒŽŽ †‹•–”‹„—–‡ –Š‡ …”‡†‹– ‘ˆ …‡–”ƒŽ –ƒš ƒ• …‡–”ƒŽ –ƒš ‘” ‹–‡‰”ƒ–‡† –ƒš ƒ†
‹–‡‰”ƒ–‡†–ƒšƒ•‹–‡‰”ƒ–‡†–ƒš‘”…‡–”ƒŽ–ƒšǡ„›™ƒ›‘ˆ‹••—‡‘ˆƒ†‘…—‡–…‘–ƒ‹‹‰–Š‡ƒ‘—–‘ˆ‹’—–
–ƒš…”‡†‹–„‡‹‰†‹•–”‹„—–‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋʹȌ Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”ƒ›†‹•–”‹„—–‡–Š‡…”‡†‹–•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǡƒ‡Ž›ǣ
ȋƒȌ –Š‡…”‡†‹–…ƒ„‡†‹•–”‹„—–‡†–‘–Š‡”‡…‹’‹‡–•‘ˆ…”‡†‹–ƒ‰ƒ‹•–ƒ†‘…—‡–…‘–ƒ‹‹‰•—…Š†‡–ƒ‹Ž•ƒ•ƒ›
„‡’”‡•…”‹„‡†Ǣ

ȋ„Ȍ –Š‡ƒ‘—–‘ˆ–Š‡…”‡†‹–†‹•–”‹„—–‡†•ŠƒŽŽ‘–‡š…‡‡†–Š‡ƒ‘—–‘ˆ…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”†‹•–”‹„—–‹‘

ȋ…Ȍ –Š‡…”‡†‹–‘ˆ–ƒš’ƒ‹†‘‹’—–•‡”˜‹…‡•ƒ––”‹„—–ƒ„Ž‡–‘ƒ”‡…‹’‹‡–‘ˆ…”‡†‹–•ŠƒŽŽ„‡†‹•–”‹„—–‡†‘Ž›–‘–Šƒ–
”‡…‹’‹‡–Ǣ

ȋ†Ȍ –Š‡…”‡†‹–‘ˆ–ƒš’ƒ‹†‘‹’—–•‡”˜‹…‡•ƒ––”‹„—–ƒ„Ž‡–‘‘”‡–Šƒ‘‡”‡…‹’‹‡–‘ˆ…”‡†‹–•ŠƒŽŽ„‡†‹•–”‹„—–‡†
ƒ‘‰•–•—…Š”‡…‹’‹‡–•–‘™Š‘–Š‡‹’—–•‡”˜‹…‡‹•ƒ––”‹„—–ƒ„Ž‡ƒ†•—…Š†‹•–”‹„—–‹‘•ŠƒŽŽ„‡’”‘”ƒ–ƒ
‘ –Š‡ „ƒ•‹• ‘ˆ –Š‡ –—”‘˜‡” ‹ ƒ –ƒ–‡ ‘” –—”‘˜‡” ‹ ƒ ‹‘ –‡””‹–‘”› ‘ˆ •—…Š ”‡…‹’‹‡–ǡ †—”‹‰ –Š‡
”‡Ž‡˜ƒ– ’‡”‹‘†ǡ –‘ –Š‡ ƒ‰‰”‡‰ƒ–‡ ‘ˆ –Š‡ –—”‘˜‡” ‘ˆ ƒŽŽ •—…Š ”‡…‹’‹‡–• –‘ ™Š‘ •—…Š ‹’—– •‡”˜‹…‡‹•
ƒ––”‹„—–ƒ„Ž‡ƒ†™Š‹…Šƒ”‡‘’‡”ƒ–‹‘ƒŽ‹–Š‡…—””‡–›‡ƒ”ǡ†—”‹‰–Š‡•ƒ‹†”‡Ž‡˜ƒ–’‡”‹‘†Ǣ

ȋ‡Ȍ –Š‡…”‡†‹–‘ˆ–ƒš’ƒ‹†‘‹’—–•‡”˜‹…‡•ƒ––”‹„—–ƒ„Ž‡–‘ƒŽŽ”‡…‹’‹‡–•‘ˆ…”‡†‹–•ŠƒŽŽ„‡†‹•–”‹„—–‡†ƒ‘‰•–
•—…Š”‡…‹’‹‡–•ƒ†•—…Š†‹•–”‹„—–‹‘•ŠƒŽŽ„‡’”‘”ƒ–ƒ‘–Š‡„ƒ•‹•‘ˆ–Š‡–—”‘˜‡”‹ƒ–ƒ–‡‘”–—”‘˜‡”
‹ƒ‹‘–‡””‹–‘”›‘ˆ•—…Š”‡…‹’‹‡–ǡ†—”‹‰–Š‡”‡Ž‡˜ƒ–’‡”‹‘†ǡ–‘–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ–Š‡–—”‘˜‡”‘ˆƒŽŽ
”‡…‹’‹‡–•ƒ†™Š‹…Šƒ”‡‘’‡”ƒ–‹‘ƒŽ‹–Š‡…—””‡–›‡ƒ”ǡ†—”‹‰–Š‡•ƒ‹†”‡Ž‡˜ƒ–’‡”‹‘†Ǥ

Explanation. Ȃ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡȂȋƒȌ–Š‡Dz”‡Ž‡˜ƒ–’‡”‹‘†dz•ŠƒŽŽ„‡Ȃ
ȋ‹Ȍ ‹ˆ–Š‡”‡…‹’‹‡–•‘ˆ…”‡†‹–Šƒ˜‡–—”‘˜‡”‹–Š‡‹”–ƒ–‡•‘”‹‘–‡””‹–‘”‹‡•‹–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”’”‡…‡†‹‰
–Š‡›‡ƒ”†—”‹‰™Š‹…Š…”‡†‹–‹•–‘„‡†‹•–”‹„—–‡†ǡ–Š‡•ƒ‹†ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ‘”

ȋ‹‹Ȍ ‹ˆ•‘‡‘”ƒŽŽ”‡…‹’‹‡–•‘ˆ–Š‡…”‡†‹–†‘‘–Šƒ˜‡ƒ›–—”‘˜‡”‹–Š‡‹”–ƒ–‡•‘”‹‘–‡””‹–‘”‹‡•‹–Š‡
ϐ‹ƒ…‹ƒŽ›‡ƒ”’”‡…‡†‹‰–Š‡›‡ƒ”†—”‹‰™Š‹…Š–Š‡…”‡†‹–‹•–‘„‡†‹•–”‹„—–‡†ǡ–Š‡Žƒ•–“—ƒ”–‡”ˆ‘”™Š‹…Š
†‡–ƒ‹Ž•‘ˆ•—…Š–—”‘˜‡”‘ˆƒŽŽ–Š‡”‡…‹’‹‡–•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡ǡ’”‡˜‹‘—•–‘–Š‡‘–Š†—”‹‰™Š‹…Š…”‡†‹–‹•–‘
„‡†‹•–”‹„—–‡†Ǣ

ȋƒȌ   –Š‡ ‡š’”‡••‹‘ Dz”‡…‹’‹‡– ‘ˆ …”‡†‹–dz ‡ƒ• –Š‡ •—’’Ž‹‡” ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Š Šƒ˜‹‰ –Š‡ •ƒ‡
‡”ƒ‡–……‘—–—„‡”ƒ•–Šƒ–‘ˆ–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”Ǣ

ȋ„Ȍ –Š‡–‡”ǮǮ–—”‘˜‡”ǯǯǡ‹”‡Žƒ–‹‘–‘ƒ›”‡‰‹•–‡”‡†’‡”•‘‡‰ƒ‰‡†‹–Š‡•—’’Ž›‘ˆ–ƒšƒ„Ž‡‰‘‘†•ƒ•™‡ŽŽ
ƒ•‰‘‘†•‘––ƒšƒ„Ž‡—†‡”–Š‹•…–ǡ‡ƒ•–Š‡˜ƒŽ—‡‘ˆ–—”‘˜‡”ǡ”‡†—…‡†„›–Š‡ƒ‘—–‘ˆƒ›†—–›‘”
–ƒšŽ‡˜‹‡†—†‡”‡–”‹‡•ͺͶƒ†ͻʹ‘ˆ‹•–‘ˆ–Š‡‡˜‡–Š…Š‡†—Ž‡–‘–Š‡‘•–‹–—–‹‘ƒ†‡–”‹‡•ͷͳ
ƒ†ͷͶ‘ˆ‹•–‘ˆ–Š‡•ƒ‹†…Š‡†—Ž‡Ǥ
 710 Lesson 14 Ȉ EP-TL

Manner of recovery of credit distributed in excess [Section 21]

Š‡”‡–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”†‹•–”‹„—–‡•–Š‡…”‡†‹–‹…‘–”ƒ˜‡–‹‘‘ˆ–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹•‡…–‹‘
ʹͲ”‡•—Ž–‹‰‹‡š…‡••†‹•–”‹„—–‹‘‘ˆ…”‡†‹––‘‘‡‘”‘”‡”‡…‹’‹‡–•‘ˆ…”‡†‹–ǡ–Š‡‡š…‡••…”‡†‹–•‘†‹•–”‹„—–‡†•ŠƒŽŽ
„‡”‡…‘˜‡”‡†ˆ”‘•—…Š”‡…‹’‹‡–•ƒŽ‘‰™‹–Š‹–‡”‡•–ǡƒ†–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͹͵‘”•‡…–‹‘͹Ͷǡƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ•ŠƒŽŽǡ—–ƒ–‹•—–ƒ†‹•ǡƒ’’Ž›ˆ‘”†‡–‡”‹ƒ–‹‘‘ˆƒ‘—––‘„‡”‡…‘˜‡”‡†Ǥ

Utilization of ITC

’—–ƒš”‡†‹–ȋȌ‹•…”‡†‹–‡†–‘ƒ’‡”•‘ǯ•‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ǤŠ‡’‡”•‘ƒ›—•‡–Š‹•–‘’ƒ›Š‹•‘—–’—–
–ƒšŽ‹ƒ„‹Ž‹–›Ǥ

Section 49A
Utilisation of input tax credit subject to certain conditions

‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•‡…–‹‘ͺͿǡ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘
–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšǡ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡƒ•–Š‡
…ƒ•‡ƒ›„‡ǡ‘Ž›ƒˆ–‡”–Š‡‹’—––ƒš…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‘ƒ……‘—–‘ˆ‹–‡‰”ƒ–‡†–ƒšŠƒ•ϔ‹”•–„‡‡—–‹Ž‹•‡†ˆ—ŽŽ›–‘™ƒ”†•
such payment.

Section 49B
Order of utilisation of input tax credit

‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‹•Šƒ’–‡”ƒ†•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ…Žƒ—•‡ȋ‡Ȍƒ†…Žƒ—•‡ȋˆȌ ‘ˆ•—„Ǧ
•‡…–‹‘ȋͻȌ‘ˆ•‡…–‹‘ͺͿǡ–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ’”‡•…”‹„‡–Š‡‘”†‡”ƒ†ƒ‡”
‘ˆ—–‹Ž‹•ƒ–‹‘‘ˆ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‹–‡‰”ƒ–‡†–ƒšǡ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ–‘™ƒ”†•’ƒ›‡–‘ˆƒ›•—…Š–ƒšǤ
Šƒ’–‡”ǣƒ›‡–‘ˆƒš‘ˆ–Š‡
—Ž‡•
—Ž‡ͺͺǣ”†‡”‘ˆ—–‹Ž‹œƒ–‹‘‘ˆ‹’—––ƒš…”‡†‹–
’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‹–‡‰”ƒ–‡†–ƒš•ŠƒŽŽϔ‹”•–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšǡƒ†–Š‡ƒ‘—–
”‡ƒ‹‹‰ǡ‹ˆƒ›ǡƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•–Š‡’ƒ›‡–‘ˆ…‡–”ƒŽ–ƒšƒ†–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡ as the case
may be, in any order.
”‘˜‹†‡†–Šƒ––Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†–‘™ƒ”†•
’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšǡ…‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‘Ž›ƒˆ–‡” the input tax
credit available on account of integrated tƒšŠƒ•ϔ‹”•–„‡‡—–‹Ž‹•‡†ˆ—ŽŽ›Ǥ
”†‡”‘ˆ—–‹Ž‹œƒ–‹‘‘ˆ‹’—––ƒš…”‡†‹–‹•ƒ•—†‡”ǣ
Input tax credit Output liability on Output liability on Output liability on
on account of account of Integrat- account of Central account of State
ed tax tax tax/ Union Terri-
tory tax
Integrated tax ȋȌ ȋȌȂƒ›‘”†‡”ƒ†‹ƒ›’”‘’‘”–‹‘
ȋȌ’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ–‡‰”ƒ–‡†–ƒš–‘„‡…‘’Ž‡–‡†‡šŠƒ—•–‡†ƒ†ƒ–‘”‹Ž›
Central tax ȋȌ ȋȌ ‘–’‡”‹––‡†
State tax/ ȋȌ ‘–’‡”‹––‡† ȋȌ
Union Terri-
tory tax

Š‡”‡ˆ‘”‡ǡ‹–‹•…Ž‡ƒ”–Šƒ––Š‡”‡‹•‘‘ˆˆ•‡–ƒ˜ƒ‹Žƒ„Ž‡„‡–™‡‡–Š‡
ƒ†–Š‡
Ǥ
 Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 711

Illustration 8
–†Ǥ‹•‡‰ƒ‰‡†‹–Š‡ƒ—ˆƒ…–—”‡‘ˆ‡Ž‡…–”‹…ƒŽƒ’’Ž‹ƒ…‡•ƒ†ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡ǡƒ†˜‹…‡
‡Ž‹‰‹„‹Ž‹–›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ǣ
–‡
ƒ‹†
Ž‡…–”‹…ƒŽ ”ƒ•ˆ‘”‡” •—–‹Ž‹œ‡† ‹ –Š‡ ƒ—ˆƒ…–—”‹‰ ʹͷͲǡͲͲͲ
’”‘…‡••
”—…•—•‡†ˆ‘”–”ƒ•’‘”–‹‰ƒ–‡”‹ƒŽ• ͳʹͷǡͲͲͲ
ƒ‡•ƒ†ƒ•–”‹‡•ˆ‘”…‘•—’–‹‘™‹–Š‹ˆƒ…–‘”› ͳʹǡͷͲͲ
Treatment
ȋͳȌ Š‡‘‡Ž‡…–”‹…ƒŽ–”ƒ•ˆ‘”‡”•™‘—Ž†„‡ˆ—ŽŽ›ƒ˜ƒ‹Žƒ„Ž‡ƒ•–Š‡•‡ƒ”‡—•‡†‹–Š‡…‘—”•‡‘ˆ„—•‹‡••Ȁ
ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••

ȋʹȌ Š‡‘–”—…•—•‡†ˆ‘”–”ƒ•’‘”–‹‰˜‡Š‹…Ž‡•™‘—Ž†„‡ƒ˜ƒ‹Žƒ„Ž‡ƒ•–Š‡•‡ƒ”‡—•‡†‹–Š‡…‘—”•‡‘ˆ

„—•‹‡••Ȁˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••

ȋ͵Ȍ  ‘ ˆ‘‘† ƒ† „‡˜‡”ƒ‰‡• ‹• ƒ „Ž‘…‡† …”‡†‹– —Ž‡•• –Š‡ ‹™ƒ”† –ƒšƒ„Ž‡ •—’’Ž‹‡• ƒ”‡
…‘•—‡† –‘ ƒ‡‘—–™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•‹–Š‡•ƒ‡…ƒ–‡‰‘”›™Š‡”‡ƒ•–Š‡ƒ„‘˜‡‹•ˆ‘”
…‘•—’–‹‘ƒ†Š‡…‡ †‹•ƒŽŽ‘™‡†

Computation of GST Liability

˜‡”›”‡‰‹•–‡”‡†’‡”•‘‹•”‡“—‹”‡†–‘…‘’—–‡Š‹•–ƒšŽ‹ƒ„‹Ž‹–›‘ƒ‘–ŠŽ›„ƒ•‹•„›•‡––‹‰‘ˆˆ–Š‡’—–ƒš”‡†‹–
ȋȌƒ‰ƒ‹•––Š‡—–™ƒ”†ƒš‹ƒ„‹Ž‹–›Ǥˆ–Š‡”‡‹•ƒ›„ƒŽƒ…‡–ƒšŽ‹ƒ„‹Ž‹–›–Š‡•ƒ‡‹•”‡“—‹”‡†–‘„‡’ƒ‹†–‘–Š‡
‰‘˜‡”‡–Ǥ
‘”–Š‡calculation of GSTǡ–Š‡–ƒš’ƒ›‡”•Š‘—Ž†‘™–Š‡GST ”ƒ–‡ƒ’’Ž‹…ƒ„Ž‡–‘˜ƒ”‹‘—•…ƒ–‡‰‘”‹‡•Ǥ
šƒ’Ž‡ǣˆ‰‘‘†•‘”•‡”˜‹…‡•ƒ”‡•‘Ž†ƒ–•ǤͳǡͲͲͲƒ†–Š‡GST ”ƒ–‡ƒ’’Ž‹…ƒ„Ž‡‹•ͳʹΨǡ–Š‡–Š‡‡–’”‹…‡…ƒŽ…—Žƒ–‡†
™‹ŽŽ„‡αͳǡͲͲͲΪȋͳǡͲͲͲȋͳʹȀͳͲͲȌȌαͳǡͲͲͲΪͳʹͲα•ǤͳǡͳʹͲ

Š‡”‡ƒ”‡͵Ž‡†‰‡”•’”‡•…”‹„‡†„›–Š‡‰‘˜‡”‡––Šƒ–‹•”‡“—‹”‡†–‘„‡ƒ‹–ƒ‹‡†„›‡˜‡”›–ƒš’ƒ›‡”Ȃ

Types of Ledgers under GST

Electronic Liability Ledger Electronic Cash Ledger Electronic credit Ledger

›
’ƒ›‡–ƒ†‡‹…ƒ•Š ŽŽ…”‡†‹–•ƒ……”—‡†‘ƒ……‘—–
Š‹•Ž‡†‰‡””‡…‘”†•ƒŽŽŽ‹ƒ„‹Ž‹–‹‡• ‘”–Š”‘—‰Š„ƒ”‡ϐŽ‡…–•‹–Š‹• ‘ˆ‹™ƒ”†•—’’Ž‹‡•ƒ†‡„›ƒ
‘ˆƒ–ƒšƒ„Ž‡’‡”•‘Ǥ ‡†‰‡”Ǥ –ƒš’ƒ›‡”™‹–Š‹ƒ–ƒš’‡”‹‘†ƒ”‡
ƒ……——Žƒ–‡†Ǥ

1. Electronic Liability Ledger

Š‡ ‡Ž‡…–”‘‹… Ž‹ƒ„‹Ž‹–› ”‡‰‹•–‡” •’‡…‹ϐ‹‡† —†‡” •—„Ǧ•‡…–‹‘ ȋ͹Ȍ ‘ˆ •‡…–‹‘ Ͷͻ •ŠƒŽŽ „‡ ƒ‹–ƒ‹‡† ‹ 

ǦͲͳ
Š‹•Ž‡†‰‡””‡…‘”†•ƒŽŽŽ‹ƒ„‹Ž‹–‹‡•‘ˆƒ–ƒšƒ„Ž‡’‡”•‘‹…Ž—†‹‰ǣ

Ȉ Š‡–ƒšǡ‹–‡”‡•–ǡŽƒ–‡ˆ‡‡•ǡ‘”ƒ›‘–Š‡”ƒ‘—–’ƒ›ƒ„Ž‡’‡”–Š‡”‡–—”ˆ—”‹•Š‡†„›–Š‡–ƒš’ƒ›‡”‘”
’‡”ƒ›’”‘…‡‡†‹‰•
 712 Lesson 14 Ȉ EP-TL

Ȉ Š‡–ƒšƒ†‹–‡”‡•–’ƒ›ƒ„Ž‡ƒ”‹•‹‰‘—–‘ˆƒ›‹•ƒ–…Š‘ˆ‘”‘—–’—––ƒšŽ‹ƒ„‹Ž‹–›

Ȉ ›‹–‡”‡•––Šƒ–ƒ›ƒ……”—‡ˆ”‘–‹‡–‘–‹‡

Ȉ Š‡”‡˜‡”•ƒŽ‘ˆ‘”‹–‡”‡•–Ǥ

ƒš’ƒ›‡”••Š‘—Ž†•‡––Ž‡–Š‡‹”Ž‹ƒ„‹Ž‹–‹‡•‹–Š‡ˆ‘ŽŽ‘™‹‰‘”†‡”ǣ
ȋ‹Ȍ ‡ŽˆǦƒ••‡••‡†–ƒšƒ†‘–Š‡”†—‡•ǡ•—…Šƒ•‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡•ǡ‘”ƒ›‘–Š‡”ƒ‘—–”‡Žƒ–‹‰–‘
’”‡˜‹‘—•–ƒš’‡”‹‘†”‡–—”•Ǣ

ȋ‹‹Ȍ ‡ŽˆǦƒ••‡••‡†–ƒšƒ†‘–Š‡”†—‡•”‡Žƒ–‹‰–‘–Š‡…—””‡––ƒš’‡”‹‘†”‡–—”Ǣ

ȋ‹‹‹Ȍ ›‘–Š‡”ƒ‘—–’ƒ›ƒ„Ž‡—†‡”–Š‡ƒ…–Ȁ”—Ž‡•ȋŽ‹ƒ„‹Ž‹–›ƒ”‹•‹‰‘—–‘ˆ†‡ƒ†‘–‹…‡ǡ’”‘…‡‡†‹‰•ǡ
‡–…ǤȌ

2. Electronic Cash Ledger

Š‡ ‡Ž‡…–”‘‹… Ž‹ƒ„‹Ž‹–› ”‡‰‹•–‡” •’‡…‹ϐ‹‡† —†‡” •—„Ǧ•‡…–‹‘ ȋ͹Ȍ ‘ˆ •‡…–‹‘ Ͷͻ •ŠƒŽŽ „‡ ƒ‹–ƒ‹‡† ‹ 

ǦͲͷ
›ƒ‘—–’ƒ‹†„›–Š‡–ƒš’ƒ›‡”™‹ŽŽ„‡”‡ϐŽ‡…–‡†‹–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ǤŠ‡ƒ‘—–ƒ˜ƒ‹Žƒ„Ž‡‹–Š‹•Ž‡†‰‡”
ƒ›„‡—•‡†ˆ‘”ƒ‹‰ƒ›’ƒ›‡––‘™ƒ”†•–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡•ǡ‘”ƒ›‘–Š‡”ƒ‘—–†—‡—†‡”–Š‡…–Ȁ
—Ž‡• ‹ –Š‡ –‹‡ ƒ† ƒ‡” ’”‡•…”‹„‡†Ǥ ȋ– ‹• ”‡‹–‡”ƒ–‡† –Šƒ– ƒ› …”‡†‹– ‹ –Š‡ ‡Ž‡…–”‘‹… …”‡†‹– Ž‡†‰‡” …ƒ „‡
—–‹Ž‹œ‡†‘Ž›ˆ‘”’ƒ›‡–‘ˆ‘—–’—––ƒšǤȌ
‘‹‹–‹ƒ–‡ƒ’ƒ›‡–ǡ–ƒš’ƒ›‡”••Š‘—Ž†‰‡‡”ƒ–‡ƒ…ŠƒŽŽƒ‘Ž‹‡—•‹‰ˆ‘”
ǦͲ͸ǡ™Š‹…Š™‹ŽŽ„‡˜ƒŽ‹†ˆ‘”ƒ
’‡”‹‘†‘ˆͳͷ†ƒ›•Ǥƒ›‡–…ƒ–Š‡„‡”‡‹––‡†–Š”‘—‰Šƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‘†‡•ǣ

Ȉ –‡”‡–„ƒ‹‰ȋƒ—–Š‘”‹œ‡†„ƒ•‘Ž›ȌǤ

Ȉ ”‡†‹–‘”†‡„‹–…ƒ”†ȋƒ—–Š‘”‹œ‡†„ƒ•‘Ž›ȌǤ

Ȉ ƒ–‹‘ƒŽŽ‡…–”‘‹… —†”ƒ•ˆ‡”ȋ Ȍ‘””‡ƒŽǦ–‹‡‰”‘•••‡––Ž‡‡–ȋ

Ȍȋƒ›„ƒǡƒ—–Š‘”‹œ‡†
‘”—ƒ—–Š‘”‹œ‡†ȌǤ

Ȉ ˜‡”Ǧ–Š‡Ǧ…‘—–‡”ȋȌ’ƒ›‡–ȋƒ—–Š‘”‹œ‡†„ƒ•‘Ž›Ȍˆ‘”†‡’‘•‹–•—’–‘–‡–Š‘—•ƒ†”—’‡‡•’‡”
…ŠƒŽŽƒƒ†’‡”–ƒš’‡”‹‘†„›…ƒ•Šǡ…Š‡“—‡‘”†‡ƒ††”ƒˆ–Ǥ

Š‡–ƒš’ƒ›‡”‹•”‡•’‘•‹„Ž‡ˆ‘”ƒ›…‘‹••‹‘†—‡‘–Š‡’ƒ›‡–Ǥ
Š‡’ƒ›‡–†ƒ–‡•ŠƒŽŽ„‡”‡…‘”†‡†ƒ•–Š‡†ƒ–‡–Š‡’ƒ›‡–‹•…”‡†‹–‡†–‘–Š‡ƒ’’”‘’”‹ƒ–‡‰‘˜‡”‡–ƒ……‘—–Ǥ

3. Electronic credit ledger

Š‡‡Ž‡…–”‘‹…Ž‹ƒ„‹Ž‹–›”‡‰‹•–‡”•’‡…‹ϐ‹‡†—†‡”•‡…–‹‘Ͷͻ•ŠƒŽŽ„‡ƒ‹–ƒ‹‡†‹ 
ǦͲʹǤ

˜‡”›…Žƒ‹‘ˆ’—–ƒš”‡†‹–•‡ŽˆǦƒ••‡••‡†„›–Š‡–ƒš’ƒ›‡”•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‹•Ž‡†‰‡”ǤŠ‡ƒ‘—–ƒ˜ƒ‹Žƒ„Ž‡‹
–Š‹•Ž‡†‰‡”ƒ›„‡—•‡†ˆ‘”’ƒ›‡––‘™ƒ”†•‘—–’—––ƒš‘Ž›Ǥ†‡”‘…‹”…—•–ƒ…‡…ƒƒ‡–”›„‡ƒ†‡†‹”‡…–Ž›
‹–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”Ǥ
Š‹•Ž‡†‰‡”ƒ›‹…Ž—†‡–Š‡ˆ‘ŽŽ‘™‹‰ǣ
Ȉ ‘‹™ƒ”†•—’’Ž‹‡•ˆ”‘”‡‰‹•–‡”‡†–ƒš’ƒ›‡”•

Ȉ ƒ˜ƒ‹Žƒ„Ž‡„ƒ•‡†‘†‹•–”‹„—–‹‘ˆ”‘‹’—–•‡”˜‹…‡•†‹•–”‹„—–‘”ȋȌ

Ȉ ‘‹’—–‘ˆ•–‘…Š‡Ž†Ȁ•‡‹Ǧϐ‹‹•Š‡†‰‘‘†•‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰–Š‡†ƒ–‡‘™Š‹…Š–Š‡–ƒš’ƒ›‡”„‡…ƒ‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒšǡ’”‘˜‹†‡†Š‡ƒ’’Ž‹‡•ˆ‘””‡‰‹•–”ƒ–‹‘
™‹–Š‹͵Ͳ†ƒ›•‘ˆ„‡…‘‹‰Ž‹ƒ„Ž‡
Lesson 14 Ȉ Input Tax Credit and Computation of GST Liability 713

Ȉ ‡”‹••‹„Ž‡‘‹’—–•Š‡Ž†‹•–‘…ƒ†‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹
•–‘…‘–Š‡†ƒ›‘ˆ…‘˜‡”•‹‘ˆ”‘…‘’‘•‹–‹‘•…Š‡‡–‘”‡‰—Žƒ”–ƒš•…Š‡‡

Ȉ ‡Ž‹‰‹„Ž‡‘ƒ’ƒ›‡–ƒ†‡‘ƒ”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǥ

LESSON ROUND-UP

Ȉ ƒš‡•’ƒ‹†‘‹™ƒ”†•—’’Ž›‘ˆ‹’—–•ǡ…ƒ’‹–ƒŽ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ”‡…ƒŽŽ‡†‹’—––ƒš‡•™Š‹…Š‹…Ž—†‡
–‡‰”ƒ–‡†
ǡ‡–”ƒŽ
ǡ–ƒ–‡
‘”‹‘‡””‹–‘”›
Ǥ
Ȉ Š‡…”‡†‹–‘ˆ–Š‡•‡–ƒš‡•‹•…ƒŽŽ‡†‹’—––ƒš…”‡†‹–Ǥ
Ȉ †‡”
ǡƒ•‡ƒŽ‡••ϐŽ‘™‘ˆ…”‡†‹––Š”‘—‰Š‘—––Š‡˜ƒŽ—‡…Šƒ‹‹•ƒ˜ƒ‹Žƒ„Ž‡”‡‘˜‹‰–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–
‘ˆ–ƒš‡•Ǥ
Ȉ Š‡ ‘ˆϐ‹…‡ ‘ˆ –Š‡ …‘’ƒ› ™Š‹…Š †‹•–”‹„—–‡• –Š‡ …”‡†‹– –‘ –Š‡ „‡‡ϐ‹…‹ƒ”› —‹–• ‘ –Š‡ „ƒ•‹• ‘ˆ –Š‡‹”
’”‡˜‹‘—•›‡ƒ”–—”‘˜‡”‹•…ƒŽŽ‡†‹’—–•‡”˜‹…‡†‹•–”‹„—–‘”Ǥ
Ȉ ’—––ƒš…”‡†‹–ȋȌ‹•ƒ’”‘˜‹•‹‘‘ˆ”‡†—…‹‰–Š‡–ƒšƒŽ”‡ƒ†›’ƒ‹†‘‹’—–•ǡ–‘ƒ˜‘‹†–Š‡…ƒ•…ƒ†‹‰
‡ˆˆ‡…–‘ˆ–ƒš‡•Ǥ
Ȉ – ‹• ‘‡ ‘ˆ –Š‡ …—––‹‰ ‡†‰‡ ˆ‡ƒ–—”‡• ƒ˜ƒ‹Žƒ„Ž‡ —†‡” –Š‡
 ƒ™ǡ —ƒ˜ƒ‹Žƒ„Ž‡ ‹ ’”‡˜‹‘—• ”‡‰‹‡ ‘ˆ
‹†‹”‡…––ƒšƒ–‹‘Ǥ
Ȉ ‡”–ƒ‹…‘†‹–‹‘•‡‡†–‘„‡ˆ—Žϐ‹ŽŽ‡†‹‘”†‡”–‘ƒ˜ƒ‹Ž–Š‡’—–ƒš”‡†‹–Ǥ
Ȉ ƒ•‹……‘†‹–‹‘ˆ‘”ƒ˜ƒ‹Ž‹‰’—–ƒš”‡†‹–ƒ‘—–•–‘’ƒ›‡–‘ˆ
„›–Š‡•—’’Ž‹‡”Ǥ
Ȉ Š‡ƒ‘–Š‡”’‡”•‘ȋŒ‘„™‘”‡”Ȍ—†‡”–ƒ‡•–Š‡™‘”‘ˆƒƒ—ˆƒ…–—”‡”ǡ–‘™Š‘–Š‡‰‘‘†•„‡Ž‘‰
ȋ”‹…‹’ƒŽȌǡ‹•‘™ƒ•Œ‘„™‘”Ǥ
Ȉ
Žƒ™Žƒ›•†‘™–Š‡…‘†‹–‹‘•ˆ‘”‹–Š‡…ƒ•‡‘ˆƒŒ‘„™‘”‡”Ǥ
Ȉ Š‡”‡‹•‘‘ˆˆ•‡–‘ˆƒ˜ƒ‹Žƒ„Ž‡„‡–™‡‡–Š‡
ƒ†–Š‡
Ǥ
Ȉ
‡‡”ƒŽ‡š‡’–‹‘‹•‰”ƒ–‡†„›‘–‹ϐ‹…ƒ–‹‘ƒ†‹•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ’‡”•‘•™Š‹…Šƒ›„‡ƒ„•‘Ž—–‡‘”
…‘†‹–‹‘ƒŽƒ†ƒ›„‡–‘–ƒŽ‘”’ƒ”–‹ƒŽǤ
Ȉ ’‡…‹ϐ‹…ǡƒŽ•‘‘™ƒ•ad hoc‡š‡’–‹‘‹•‰”ƒ–‡†–‘’‡”•‘•—†‡”…‹”…—•–ƒ…‡•‘ˆƒ‡š…‡’–‹‘ƒŽ
ƒ–—”‡„›ƒ•’‡…‹ƒŽ‘”†‡”…‘—‹…ƒ–‡†–‘–Š‡’ƒ”–›•‡‡‹‰‡š‡’–‹‘Ǥ

TEST YOURSELF

ȋŠ‡•‡ƒ”‡‡ƒ–ˆ‘””‡Ǧ…ƒ’‹–—Žƒ–‹‘‘Ž›Ǥ•™‡”•–‘–Š‡•‡“—‡•–‹‘•ƒ”‡‘––‘„‡•—„‹––‡†ˆ‘”‡˜ƒŽ—ƒ–‹‘ǤȌ
Multiple Choice Questions (MCQs)
ͳǤ –‡”’”‹•‡•Šƒ†ƒ†‡•—’’Ž‹‡•‘ˆ•ǤͷǡͷͲǡͲͲͲ–‘–‡”’”‹•‡•Ǥ—‹…‹’ƒŽ—–Š‘”‹–‹‡•‘ˆ ƒ‹’—”‘•—…Š
•—’’Ž‹‡•Ž‡˜‹‡†–Š‡–ƒš̷ͳͲΨ‘ˆ•ǤͷͷǡͲͲͲǤ
ƒ†
…Šƒ”‰‡ƒ„Ž‡‘–Š‡•—’’Ž›™ƒ•‘ˆ•Ǥ͸͸ǡͲͲͲǤ
ƒ…‹‰…Šƒ”‰‡•‘–‹…Ž—†‡†‹–Š‡’”‹…‡‘ˆ•ǤͷǡͷͲǡͲͲͲƒ‘—–‡†–‘•ǤͳͷǡͲͲͲǤ—„•‹†›‘ˆ•ǤʹͷǡͲͲͲ
™ƒ•”‡…‡‹˜‡†ˆ”‘ƒ
‘–Š‡•ƒŽ‡‘ˆ•—…Š‰‘‘†•ƒ†–Š‡’”‹…‡‘ˆ•ǤͷǡͷͲǡͲͲͲ‹•ƒˆ–‡”–ƒ‹‰‹–‘ƒ…Ǧ
…‘—––Š‡ƒ‘—–‘ˆ•—„•‹†›•‘”‡…‡‹˜‡†Ǥ‹•…‘—–‘ˆˆ‡”‡†‹•̷ͳΨ™Š‹…Š™ƒ•‡–‹‘‡†‘–Š‡‹˜‘‹…‡Ǥ
‡–‡”‹‡–Š‡˜ƒŽ—‡‘ˆ•—’’Ž›ǫ
ƒȌ •Ǥ͸ǡ͵ͻǡͷͲͲ
„Ȍ •ǤͻͷǡͲͲͲ
…Ȍ •ǤͳǡͳͲǡͲͲͲ
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋƒȌ
714 Lesson 14 Ȉ EP-TL

ʹǤ —Ž‡͵͸ȋͶȌ‘ˆ
—Ž‡•ǡʹͲͳ͹ˆ”‘ͳ•– ƒ—ƒ”›ǡʹͲʹͳǦ”‡…‹’‹‡–•…ƒ…Žƒ‹’”‘˜‹•‹‘ƒŽ’—–ƒš”‡†‹–
‹
Ǧ͵‘Ž›–‘–Š‡‡š–‡–‘ˆ̴̴̴̴̴̴̴̴̴̴̴‘ˆ–Š‡‡Ž‹‰‹„Ž‡…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‹
ǦʹǤ
ƒȌ ʹͲΨ
„Ȍ ͳͲΨ
…Ȍ ͷΨ
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ…Ȍ
͵Ǥ Š‹…Š•‡…–‹‘‘ˆ
…–ʹͲͳ͹†‡ƒŽ•™‹–Š‡Ž‹‰‹„‹Ž‹–›ƒ†…‘†‹–‹‘•ˆ‘”–ƒ‹‰ǫ
ƒȌ ‡…–‹‘͵ͻ
„Ȍ ‡…–‹‘ͳ͸
…Ȍ ‡…–‹‘ͳͲ
†Ȍ ‡…–‹‘ʹͲ
•™‡”ǣȋ„Ȍ
ͶǤ Š‡„‹‰‰‡•–„‡‡ϐ‹–‘ˆ‹•ǣ
ƒȌ Ž‹‹ƒ–‹‰–Š‡…ƒ•…ƒ†‹‰‡ˆˆ‡…–‘ˆ–ƒš‡•
„Ȍ ‡†—…‹‰–Š‡…‘•–‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•
…Ȍ ƒ”ƒ†‹‰•Š‹ˆ–ˆ”‘‹†‹˜‹†—ƒŽ•’ƒ›‹‰‘”‡–ƒš‡•–‘‘”‡‹†‹˜‹†—ƒŽ•’ƒ›‹‰–ƒš‡•
†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ†Ȍ
ͷǤ •Š‹”–ƒ—ˆƒ…–—”‹‰…‘’ƒ›•‡†••‡‹Ǧϐ‹‹•Š‡†•Š‹”–•ȋ™‹–Š‘—–…‘ŽŽƒ”•ƒ†’‘…‡–•Ȍ–‘Œ‘„™‘”‡”•
™Š‘™‹ŽŽ…‘’Ž‡–‡–Š‡”‡ƒ‹‹‰™‘”Ǥ•—…Šƒ•‹–—ƒ–‹‘ǡ–Š‡ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ™‘—Ž†„‡ƒŽŽ‘™‡†–‘–ƒ‡
–Š‡…”‡†‹–‘ˆ–Š‡–ƒš’ƒ‹†‘’—”…Šƒ•‡•‘ˆ–Š‡‰‘‘†••‡–ˆ‘”Œ‘„™‘”
ƒȌ ‘„‘”‡”•
„Ȍ ”‹…‹’ƒŽƒ—ˆƒ…–—”‡”
…Ȍ ‘–Š‘ˆ–Š‡„‘˜‡
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ„Ȍ

LIST OF FURTHER READINGS

Ȉ
‘‘†• Ƭ ‡”˜‹…‡• ƒšǡ ƒ™•ǡ ‘…‡’–• ƒ† ’ƒ…– ƒŽ›•‹•ǦŽ‘‘•„—”› Ȃ ”Ǥ ƒŒ‹˜ ‰ƒ”™ƒŽ Ƭ ƒŒ‡‡˜
ƒŽŠ‘–”ƒ
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›
Ȉ …‘’Ž‡–‡‰—‹†‡–‘
‘‘†•Ƭ‡”˜‹…‡•ƒš‡ƒ†›‡…‘‡”‹Ƭ ‘”ƒ–ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽ
ƬƒŒ‡‡˜ƒŽŠ‘–”ƒ
 Procedural Compliance under
Lesson 15 GST
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ

Ȉ Š‡‘„Œ‡…–‹˜‡‘ˆ–Š‹•Ž‡••‘‹•–‘‡ƒ„Ž‡–Š‡•–—†‡–•–‘
Ȉ Registration —†‡”•–ƒ†
Ȉ ‰‰”‡‰ƒ–‡—”‘˜‡” Ȉ ”‘˜‹•‹‘•”‡Žƒ–‡†–‘‡‰‹•–”ƒ–‹‘
Ȉ ™ƒ›‹ŽŽ• Ȉ ƒš˜‘‹…‡•
Ȉ ‡ˆ—†• Ȉ ‡„‹–Ƭ”‡†‹–‘–‡
Ȉ ƒš˜‘‹…‡ Ȉ ……‘—–•ƒ†‡…‘”†•
Ȉ Ž‡…–”‘‹…™ƒ›‹ŽŽ
Ȉ Returns
Ȉ ƒ›‡–‘ˆƒš
Ȉ ‡ˆ—†”‘…‡†—”‡•

Lesson Outline
Ȉ Registration
Ȉ ‡‰—Žƒ–‘”› ”ƒ‡™‘”
Ȉ ƒš˜‘‹…‡•ǡ‡„‹–Ƭ”‡†‹–‘–‡
Ȉ ……‘—–•ƒ†‡…‘”†•
Ȉ Ǧ™ƒ›‹ŽŽ•
Ȉ Returns
Ȉ ƒ›‡–•
Ȉ ‡ˆ—†•
Ȉ —†‹–
Ȉ ǧ
Ȉ 
Ȉ   

716 Lesson 15 Ȉ EP-TL

Regulatory Framework
1. Central Goods and Services Tax Act, 2017

Section Deals with

‡…–‹‘ʹʹ ‡”•‘•‹ƒ„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘
‡…–‹‘ʹ͵ ‡”•‘•‘–‹ƒ„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘
‡…–‹‘ʹͶ ‘’—Ž•‘”›”‡‰‹•–”ƒ–‹‘‹…‡”–ƒ‹…ƒ•‡•
‡…–‹‘ʹͷ ”‘…‡†—”‡ˆ‘””‡‰‹•–”ƒ–‹‘
‡…–‹‘ʹͻ ƒ…‡ŽŽƒ–‹‘‘ˆ‡‰‹•–”ƒ–‹‘
‡…–‹‘͵ͳ ƒš˜‘‹…‡
‡…–‹‘͵Ͷ ”‡†‹–ƒ†‡„‹–‘–‡•
‡…–‹‘͵ͷ ……‘—–•ƒ†‘–Š‡””‡…‘”†•
‡…–‹‘͵͸ ‡”‹‘†‘ˆ”‡–‡–‹‘‘ˆƒ……‘—–•
‡…–‹‘͵͹ —”‹•Š‹‰†‡–ƒ‹Ž•‘ˆ‘—–™ƒ”†•—’’Ž‹‡•
‡…–‹‘͵ͺ —”‹•Š‹‰†‡–ƒ‹Ž•‘ˆ‹™ƒ”†•—’’Ž‹‡•
‡…–‹‘͵ͻ —”‹•Š‹‰‘ˆ”‡–—”•
‡…–‹‘ͶͲ ‹”•–‡–—”
‡…–‹‘Ͷͳ Žƒ‹‘ˆ‹’—––ƒš…”‡†‹–ƒ†’”‘˜‹•‹‘ƒŽƒ……‡’–ƒ…‡–Š‡”‡‘ˆ
‡…–‹‘Ͷʹ ƒ–…Š‹‰ǡ”‡˜‡”•ƒŽƒ†”‡…Žƒ‹‘ˆ‹’—––ƒš…”‡†‹–
‡…–‹‘Ͷ͵ ƒ–…Š‹‰ǡ‡˜‡”•ƒŽƒ†‡…Žƒ‹‘ˆ‡†—…–‹‘‹—–’—–ƒš‹ƒ„‹Ž‹–›
‡…–‹‘ͶͶ —ƒŽ‡–—”
‡…–‹‘Ͷͷ ‹ƒŽ‡–—”
‡…–‹‘Ͷ͸ ‘–‹…‡–‘‡–—”‡ˆƒ—Ž–‡”•
‡…–‹‘Ͷͻ ƒ›‡–‘ˆƒšǡ–‡”‡•–ǡ‡ƒŽ–›ƒ†‘–Š‡”ƒ‘—–•
‡…–‹‘ͷͳ ƒš‡†—…–‡†ƒ–‘—”…‡ȋȌ
‡…–‹‘ͷͶ ‡ˆ—†‘ˆƒš
‡…–‹‘ͷ͸ –‡”‡•–‘†‡Žƒ›‡†”‡ˆ—†•
‡…–‹‘ͷ͹ ‘•—‡”‡Žˆƒ”‡ —†
‡…–‹‘ͷͺ –‹Ž‹•ƒ–‹‘‘ˆ —†
‡…–‹‘͸ͷ —†‹–„›ƒš—–Š‘”‹–‹‡•
‡…–‹‘͸͸ ’‡…‹ƒŽ—†‹–
‡…–‹‘͸ͺ Ž‡…–”‘‹…ƒ›‹ŽŽ
‡…–‹‘ͳͶ͸ ‘‘‘”–ƒŽ
‡…–‹‘ͳ͹ͳ –‹Ǧ”‘ϐ‹–‡‡”‹‰‡ƒ•—”‡
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 717

RULES FOR REGISTRATION [CHAPTER III]

‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹†‡ƒŽ•™‹–Š–Š‡”‡‰‹•–”ƒ–‹‘’”‘˜‹•‹‘•Ǥ

Rules of CGST Act, 2017 Description

—Ž‡ͺ ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘
—Ž‡ͻ ‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘ƒ†ƒ’’”‘˜ƒŽ
—Ž‡ͳͲ ••—‡‘ˆ”‡‰‹•–”ƒ–‹‘…‡”–‹ϐ‹…ƒ–‡
—Ž‡ͳͲ —”‹•Š‹‰‘ˆƒ……‘—–‡–ƒ‹Ž•
—Ž‡ͳͳ ‡’ƒ”ƒ–‡ ”‡‰‹•–”ƒ–‹‘ ˆ‘” —Ž–‹’Ž‡ ’Žƒ…‡• ‘ˆ „—•‹‡•• ™‹–Š‹ ƒ –ƒ–‡ ‘” ƒ ‹‘
territory
—Ž‡ͳʹ
”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘’‡”•‘•”‡“—‹”‡†–‘†‡†—…––ƒšƒ–•‘—”…‡‘”–‘…‘ŽŽ‡…––ƒšƒ–
•‘—”…‡
—Ž‡ͳ͵
”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘
—Ž‡ͳͶ
”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘ƒ’‡”•‘•—’’Ž›‹‰‘Ž‹‡‹ˆ‘”ƒ–‹‘ƒ††ƒ–ƒ„ƒ•‡ƒ……‡••
‘””‡–”‹‡˜ƒŽ•‡”˜‹…‡•ˆ”‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒ–‘ƒ‘Ǧ–ƒšƒ„Ž‡‘Ž‹‡”‡…‹’‹‡–
—Ž‡ͳͷ š–‡•‹‘‹’‡”‹‘†‘ˆ‘’‡”ƒ–‹‘„›…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘ƒ†‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡
’‡”•‘
—Ž‡ͳ͸ —‘Ǧ‘–‘”‡‰‹•–”ƒ–‹‘
—Ž‡ͳ͹ ••‹‰‡–‘ˆ‹“—‡†‡–‹–›—„‡”–‘…‡”–ƒ‹•’‡…‹ƒŽ‡–‹–‹‡•
—Ž‡ͳͺ ‹•’Žƒ›‘ˆ”‡‰‹•–”ƒ–‹‘…‡”–‹ϐ‹…ƒ–‡ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”
‘–Š‡ƒ‡„‘ƒ”†
—Ž‡ͳͻ ‡†‡–‘ˆ”‡‰‹•–”ƒ–‹‘
—Ž‡ʹͲ ’’Ž‹…ƒ–‹‘ˆ‘”…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘
—Ž‡ʹͳ ‡‰‹•–”ƒ–‹‘–‘„‡…ƒ…‡ŽŽ‡†‹…‡”–ƒ‹…ƒ•‡•
—Ž‡ʹͳ —•’‡•‹‘‘ˆ”‡‰‹•–”ƒ–‹‘
—Ž‡ʹʹ ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘
—Ž‡ʹ͵ ‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘
—Ž‡ʹͶ ‹‰”ƒ–‹‘‘ˆ’‡”•‘•”‡‰‹•–‡”‡†—†‡”–Š‡‡š‹•–‹‰Žƒ™
—Ž‡ʹͷ Š›•‹…ƒŽ˜‡”‹ϐ‹…ƒ–‹‘‘ˆ„—•‹‡••’”‡‹•‡•‹…‡”–ƒ‹…ƒ•‡•
—Ž‡ʹ͸ ‡–Š‘†‘ˆƒ—–Š‡–‹…ƒ–‹‘

REGISTRATION
 ƒ› –ƒš •›•–‡ǡ ‡‰‹•–”ƒ–‹‘‹•–Š‡‘•–ˆ—†ƒ‡–ƒŽ”‡“—‹”‡‡–ˆ‘”
‹†‡–‹ϐ‹…ƒ–‹‘ ‘ˆ –ƒš ’ƒ›‡”• ‡•—”‹‰ –ƒš …‘’Ž‹ƒ…‡ ‹ –Š‡ ‡…‘‘›Ǥ • ‹–Š‘—– ”‡‰‹•–”ƒ–‹‘ǡ ƒ ’‡”•‘ …ƒ
†‹ƒ‹•‘˜‹‰–‘™ƒ”†•†‹‰‹–‹œƒ–‹‘ǡ
Šƒ•’”‘˜‹†‡†ƒ‡ƒ•›ƒ†•‹’Ž‡ ‡‹–Š‡”…‘ŽŽ‡…––ƒšˆ”‘Š‹•…—•–‘‡”•
™ƒ› ‘ˆ ’ƒ›‡– ‘ˆ –ƒš‡• ™‹–Š –Š”‡‡ ‡Ž‡…–”‘‹… Ž‡†‰‡”• ƒ‡Ž› Ǧ…ƒ•Š ‘” …Žƒ‹ ƒ› ‹’—– –ƒš …”‡†‹– ‘ˆ –ƒš
‡†‰‡”ǡǦ…”‡†‹–‡†‰‡”ƬǦŽ‹ƒ„‹Ž‹–›‡†‰‡”Ǥ”‡‰‹•–‡”‡†’‡”•‘‹•”‡“—‹”‡† ’ƒ‹†„›Š‹Ǥ
–‘ ƒ‹–ƒ‹ ’”‘’‡” ƒ……‘—–• ƒ† ”‡…‘”†• ƒ† ‡‡’ ‹– ƒ– Š‹• ”‡‰‹•–‡”‡†
’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••Ǥ‘ˆƒ…‹Ž‹–ƒ–‡†‹‰‹–‹œƒ–‹‘ǡ–Š‡”‡‹•ƒˆƒ…‹Ž‹–›–‘ƒ‹–ƒ‹ƒ……‘—–•ƒ†‘–Š‡””‡…‘”†•‹
‡Ž‡…–”‘‹…ˆ‘”—†‡”
Ǥ
‡‰‹•–”ƒ–‹‘‘ˆƒ›„—•‹‡••‡–‹–›—†‡”–Š‡
ƒ™‹’Ž‹‡•‘„–ƒ‹‹‰ƒ—‹“—‡—„‡”ˆ”‘–Š‡…‘…‡”‡†–ƒš
ƒ—–Š‘”‹–‹‡•ˆ‘”–Š‡’—”’‘•‡‘ˆ…‘ŽŽ‡…–‹‰–ƒš‘„‡ŠƒŽˆ‘ˆ–Š‡‰‘˜‡”‡–ƒ†–‘ƒ˜ƒ‹Ž’—–ƒš”‡†‹–ˆ‘”–Š‡–ƒš‡•
‘Š‹•‹™ƒ”†•—’’Ž‹‡•Ǥ‡…–‹‘ʹʹ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒšȋ
Ȍ…–ǡʹͲͳ͹ƒ†ƒ–‡•–Šƒ–‡˜‡”›’‡”•‘
™Š‘Šƒ•ƒƒ‰‰”‡‰ƒ–‡–—”‘˜‡”‘ˆ‘”‡–Šƒ•ʹͲƒ…•‹–Š‡”‡Ž‡˜ƒ–ϐ‹ƒ…‹ƒŽ›‡ƒ”ǡ‹•Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†—†‡”
–Š‡…–Ǥ
 718 Lesson 15 Ȉ EP-TL

‘™‡˜‡”ǡ ™Š‡”‡ •—…Š ’‡”•‘ ƒ‡• –ƒšƒ„Ž‡

•—’’Ž‹‡• ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Š ˆ”‘ ƒ›
‘ˆ–Š‡•’‡…‹ƒŽ…ƒ–‡‰‘”›–ƒ–‡•ǡŠ‡•ŠƒŽŽ„‡Ž‹ƒ„Ž‡
–‘ „‡ ”‡‰‹•–‡”‡† ‹ˆ Š‹• ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” ‹ ƒ
ˆ‹ƒ…‹ƒŽ›‡ƒ”‡š…‡‡†••ͳͲŽƒ…•Ǥ
Note : • ’‡” ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ ͳͲȀʹͲͳͻǦ‡–”ƒŽ ƒš †ƒ–‡†
ƒ”…ŠͲ͹ǡ ʹͲͳͻ ƒ› ’‡”•‘ǡ ™Š‘ ‹• ‡‰ƒ‰‡† ‹ ‡š…Ž—•‹˜‡
•—’’Ž› ‘ˆ ‰‘‘†• ƒ† ™Š‘•‡ ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” ‹• ‘”‡
–Šƒ forty lakh ”—’‡‡•ǡ ‹• Ž‹ƒ„Ž‡ –‘ „‡ ”‡‰‹•–‡”‡†—†‡”
–Š‡ƒ…–Ǥ

GSTIN
The ”‡‰‹•–”ƒ–‹‘ —†‡”
 ‹• ‡”ƒ‡– ……‘—– —„‡” ȋȌ „ƒ•‡† ƒ† •–ƒ–‡Ǧ•’‡…‹ϐ‹…Ǥ
 †‡–‹ϐ‹…ƒ–‹‘
—„‡”ȋ
Ȍ‹•ƒͳͷǦ†‹‰‹–—„‡”ƒ†ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘ǡ‹…‘”’‘”ƒ–‹‰–Š‡
‹•ƒ†‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡
ƒ’’Ž‹…ƒ–—’‘”‡‰‹•–”ƒ–‹‘Ǥ
Ȉ Š‡ϐ‹”•––™‘†‹‰‹–•‘ˆ–Š‹•—„‡”™‹ŽŽ”‡’”‡•‡––Š‡•–ƒ–‡…‘†‡
Ȉ Š‡‡š––‡†‹‰‹–•™‹ŽŽ„‡–Š‡—„‡”‘ˆ–Š‡–ƒš’ƒ›‡”
Ȉ Š‡–Š‹”–‡‡–Š†‹‰‹–™‹ŽŽ„‡ƒ••‹‰‡†„ƒ•‡†‘–Š‡—„‡”‘ˆ”‡‰‹•–”ƒ–‹‘•™‹–Š‹ƒ•–ƒ–‡
Ȉ Š‡ˆ‘—”–‡‡–Š†‹‰‹–™‹ŽŽ„‡„›†‡ˆƒ—Ž–
Ȉ Š‡Žƒ•–†‹‰‹–™‹ŽŽ„‡ˆ‘”…Š‡……‘†‡
‡‰‹•–”ƒ–‹‘—†‡”
‹•‘––ƒš•’‡…‹ϐ‹…ǡ™Š‹…Š‡ƒ•–Šƒ––Š‡”‡‹••‹‰Ž‡”‡‰‹•–”ƒ–‹‘ˆ‘”ƒŽŽ–Š‡–ƒš‡•ǡ‹Ǥ‡Ǥǡ
ǡ

Ȁ
ǡ
ƒ†…‡••‡•Ǥ

Persons liable for Registration [Section 22]

ȋͳȌ ˜‡”›•—’’Ž‹‡”•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†—†‡”–Š‹•…–‹–Š‡–ƒ–‡‘”‹‘–‡””‹–‘”›ǡ‘–Š‡”–Šƒ•’‡…‹ƒŽ
…ƒ–‡‰‘”›–ƒ–‡•ǡˆ”‘™Š‡”‡Š‡ƒ‡•ƒ–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‹ˆŠ‹•ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”
‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”‡š…‡‡†•–™‡–›ŽƒŠ”—’‡‡•Ǣ
 ˆƒ’‡”•‘Šƒ•–ƒšƒ„Ž‡ƒ†‡š‡’–•—’’Ž‹‡•ƒ•ƒ’ƒ”–‘ˆ–Š‡–—”‘˜‡”ǡ–Š‡–—”‘˜‡”ˆ”‘„‘–Š™‘—Ž†„‡ƒ††‡†
–‘†‡–‡”‹‡™Š‡–Š‡”–Š‡ƒ‰‰”‡‰ƒ–‡‡š…‡‡†•–Š‡–Š”‡•Š‘Ž†ǡƒ†‹ˆ‹–†‘‡•ǡ–Š‡”‡‰‹•–”ƒ–‹‘„‡…‘‡ƒ†ƒ–‘”›
ˆ‘”•—…Š•—’’Ž‹‡”ǤŠ‡•—’’Ž‹‡•„›–Š‡ƒ‰‡–•‘„‡ŠƒŽˆ‘ˆ–Š‡’”‹…‹’ƒŽ™‘—Ž†„‡‹…Ž—†‡†‹–Š‡ƒ‰‰”‡‰ƒ–‡
–—”‘˜‡” ‘ˆ „‘–Šǡ –Š‡ ’”‹…‹’ƒŽ ƒ† –Š‡ ƒ‰‡–Ǥ ‡‰‹•–”ƒ–‹‘ ‹• ƒ†ƒ–‘”› ƒ– ‡˜‡”› ’Žƒ…‡ ‘ˆ „—•‹‡•• ˆ”‘
™Š‡”‡‹ƒ–ƒšƒ„Ž‡•—’’Ž›Šƒ•„‡‡ƒ†‡Ǥ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡•—…Š’‡”•‘ƒ‡•–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šˆ”‘ƒ›‘ˆ–Š‡•’‡…‹ƒŽ
…ƒ–‡‰‘”›–ƒ–‡•ȋƒ‹’—”ǡ‹œ‘”ƒǡƒ‰ƒŽƒ†ƒ†”‹’—”ƒȌǡŠ‡•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†‹ˆŠ‹•ƒ‰‰”‡‰ƒ–‡
–—”‘˜‡”‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”‡š…‡‡†•–‡ŽƒŠ”—’‡‡•Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡
‘˜‡”‡–ƒ›ǡƒ––Š‡”‡“—‡•–‘ˆƒ•’‡…‹ƒŽ…ƒ–‡‰‘”›•–ƒ–‡•Ȁ‹‘‡””‹‘–”›ƒ†‘
–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡…‘—…‹Žǡ‡Šƒ…‡–Š‡ƒ‰‰”‡‰ƒ–‡–—”‘˜‡””‡ˆ‡””‡†–‘‹ϐ‹”•–’”‘˜‹•‘ˆ”‘–‡ŽƒŠ
”—’‡‡•–‘•—…Šƒ‘—–ǡ‘–‡š…‡‡†‹‰–™‡–›ŽƒŠ”—’‡‡•ˆ‘”‰‘‘†•ƒ†•‡”˜‹…‡•‹…ƒ•‡‘ˆ”—ƒ…ŠƒŽ”ƒ†‡•Šǡ
‡‰ŠƒŽƒ›ƒǡ‹‹ǡ––ƒ”ƒŠƒ†ǡ—†—…Š‡””›ƒ†‡Ž‡‰ƒƒȌƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†Ž‹‹–ƒ–‹‘•ǡ
ƒ•ƒ›„‡•‘‘–‹ϐ‹‡†Ǥȋ
ƒ‡†‡–ƒ…–ǡʹͲͳͺǡ™Ǥ‡ǤˆǤͲͳǤͲʹǤʹͲͳͻǤȌ
 ”‘˜‹†‡†ƒŽ•‘–Šƒ––Š‡
‘˜‡”‡–ƒ›ǡƒ––Š‡”‡“—‡•–‘ˆ–Š‡•–ƒ–‡‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ
‡Šƒ…‡–Š‡ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”ˆ”‘–™‡–›ŽƒŠ”—’‡‡•–‘•—…Šƒƒ‘—–‘–‡š…‡‡†‹‰ˆ‘”–›ŽƒŠ”—’‡‡•
‹…ƒ•‡‘ˆ•—’’Ž‹‡”™Š‘‹•‡‰ƒ‰‡†‡š…Ž—•‹˜‡Ž›‹•—’’Ž›‘ˆ‰‘‘†•ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†Ž‹‹–ƒ–‹‘•ǡ
ƒ•ƒ›„‡‘–‹ϐ‹‡†ƒ†ˆ‘”•‡”˜‹…‡•–Š‡–Š”‡•Š‘Ž†Ž‹‹–‹•ʹͲƒ…•‘Ž›‹…ƒ•‡‘ˆ Ƭǡ••ƒǡ‹ƒ…ŠƒŽ”ƒ†‡•Š
ƒ†ƒŽŽ‘–Š‡”•–ƒ–‡•ȋ ‹ƒ…‡ȋ‘ǤʹȌ…–ǡʹͲͳͻ™Ǥ‡Ǥˆ†ƒ–‡ͲͳǤͲͳǤʹͲʹͲȌǤ
Explanation ǣǦ ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••—„Ǧ•‡…–‹‘ƒ’‡”•‘•ŠƒŽŽ„‡…‘•‹†‡”‡†–‘„‡‡‰ƒ‰‡†‹–Š‡•—’’Ž›‘ˆ‰‘‘†•
‡˜‡‹ˆŠ‡‹•‡‰ƒ‰‡†‹‡š‡’–•—’’Ž›‘ˆ•‡”˜‹…‡•’”‘˜‹†‡†„›™ƒ›‘ˆ‡š–‡†‹‰†‡’‘•‹–•ǡŽ‘ƒ•‘”ƒ†˜ƒ…‡•‹•‘
ˆƒ”ƒ•–Š‡…‘•‹†‡”ƒ–‹‘‹•”‡’”‡•‡–‡†„›™ƒ›‘ˆ‹–‡”‡•–‘”†‹•…‘—–Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 719

ȋ‹–‡ƒ•™Š‹Ž‡…ƒŽ…—Žƒ–‹‰–Š”‡•Š‘Ž†Ž‹‹–‘ˆ”—’‡‡•ˆ‘”–›ŽƒŠ•‹…ƒ•‡‘ˆ•—’’Ž‹‡”‘ˆ‰‘‘†•‘Ž›ǡ™‡•ŠƒŽŽ‘–…Ž—„
˜ƒŽ—‡‘ˆ‡š‡’–•—’’Ž›‘ˆ•‡”˜‹…‡™Š‹…Š‹•‹ˆ‘”‘ˆ‡š–‡†‹‰Ž‘ƒ•‘”ƒ†˜ƒ…‡•™Š‘•‡…‘•‹†‡”ƒ–‹‘‹•‹ˆ‘”‘ˆ
‹–‡”‡•–‘”†‹•…‘—–ȌǤ

States with threshold limit of Rs. States/UTs with threshold limit of States/UTs with threshold
10 Lacs for both goods and services Rs. 20 Lacs for both goods and limit of Rs. 20 Lacs for services
services and Rs. 40 Lacs for goods
ƒ‹’—” ”—ƒ…ŠƒŽ”ƒ†‡•Š ƒ—ƒ†ƒ•Š‹”
‹œ‘”ƒ Meghalaya ••ƒ
ƒ‰ƒŽƒ† ‹‹ ‹ƒ…ŠƒŽ”ƒ†‡•Š
”‹’—”ƒ ––ƒ”ƒŠƒ† ŽŽ‘–Š‡”–ƒ–‡•
—†—…Š‡””›
Telangana
ȋʹȌ ˜‡”›’‡”•‘™Š‘Ǥ‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ƒ’’‘‹–‡††ƒ›Ǥ‹•”‡‰‹•–‡”‡†‘”Š‘Ž†•ƒŽ‹…‡…‡—†‡”
ƒ‡š‹•Š‹‰Žƒ™Ǥ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†–Š‹•…–™‹–Š‘ˆˆ‡…–ˆ”‘–Š‡ƒ’’‘‹–‡††ƒ›Ǥ
Liability to get registered in case of succession or otherwise:
ȋ͵Ȍ Š‡”‡ƒ„—•‹‡••…ƒ””‹‡†‘„›ƒ–ƒšƒ„Ž‡’‡”•‘”‡‰‹•–‡”‡†—†‡”–Š‹•…–‹•–”ƒ•ˆ‡””‡†ǡ™Š‡–Š‡”‘ƒ……‘—–
‘ˆ•—……‡••‹‘‘”‘–Š‡”™‹•‡ǡ–‘ƒ‘–Š‡”’‡”•‘ƒ•ƒ‰‘‹‰…‘…‡”ǡ–Š‡–”ƒ•ˆ‡”‡‡‘”–Š‡•—……‡••‘”ǡƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†™‹–Š‡ˆˆ‡…–ˆ”‘–Š‡†ƒ–‡‘ˆ•—…Š–”ƒ•ˆ‡”‘”•—……‡••‹‘Ǥ
Registration in case of Amalgamation or Demerger:
ȋͶȌ ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘•ȋͳȌƒ†ȋ͵Ȍǡ‹ƒ…ƒ•‡‘ˆ–”ƒ•ˆ‡”’—”•—ƒ––‘•ƒ…–‹‘‘ˆ
ƒ•…Š‡‡‘”ƒƒ””ƒ‰‡‡–ˆ‘”ƒƒŽ‰ƒƒ–‹‘‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ†‡‡”‰‡”‘ˆ–™‘‘”‘”‡…‘’ƒ‹‡•
’—”•—ƒ––‘ƒ‘”†‡”‘ˆƒ‹‰Š‘—”–ǡ”‹„—ƒŽ‘”‘–Š‡”™‹•‡ǡ–Š‡–”ƒ•ˆ‡”‡‡•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†ǡ
™‹–Š‡ˆˆ‡…–ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡‡‰‹•–”ƒ”‘ˆ‘’ƒ‹‡•‹••—‡•ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ‹…‘”’‘”ƒ–‹‘‰‹˜‹‰
‡ˆˆ‡…––‘•—…Š‘”†‡”‘ˆ–Š‡‹‰Š‘—”–‘””‹„—ƒŽǤ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡȂ
ȋ‹Ȍ –Š‡‡š’”‡••‹‘“aggregate turnover”•ŠƒŽŽ‹…Ž—†‡ƒŽŽ•—’’Ž‹‡•ƒ†‡„›–Š‡–ƒšƒ„Ž‡’‡”•‘ǡ™Š‡–Š‡”‘Š‹•
‘™ƒ……‘—–‘”ƒ†‡‘„‡ŠƒŽˆ‘ˆƒŽŽŠ‹•’”‹…‹’ƒŽ•Ǣ
ȋ‹‹Ȍ –Š‡•—’’Ž›‘ˆ‰‘‘†•ǡƒˆ–‡”…‘’Ž‡–‹‘‘ˆŒ‘„™‘”ǡ„›ƒ”‡‰‹•–‡”‡†Œ‘„™‘”‡”•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•–Š‡•—’’Ž›‘ˆ
‰‘‘†•„›–Š‡’”‹…‹’ƒŽ”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͶ͵ǡƒ†–Š‡˜ƒŽ—‡‘ˆ•—…Š‰‘‘†••ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡
ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”‘ˆ–Š‡”‡‰‹•–‡”‡†Œ‘„™‘”‡”Ǣ
ȋ‹‹‹Ȍ –Š‡‡š’”‡••‹‘Dz•’‡…‹ƒŽ…ƒ–‡‰‘”›–ƒ–‡•dz•ŠƒŽŽ‡ƒ–Š‡–ƒ–‡•ƒ••’‡…‹ϐ‹‡†‹•—„Ǧ…Žƒ—•‡ȋ‰Ȍ‘ˆ…Žƒ—•‡‘ˆƒ”–‹…Ž‡
ʹ͹ͻ‘ˆ–Š‡‘•–‹–—–‹‘ȏ‡š…‡’––Š‡–ƒ–‡‘ˆ ƒ—ƒ†ƒ•Š‹”Ȑƒ†–ƒ–‡•‘ˆ”—ƒ…ŠƒŽ”ƒ†‡•Šǡ••ƒǡ
‹ƒ…ŠƒŽ”ƒ†‡•Šǡ‡‰ŠƒŽƒ›ƒƒ†––ƒ”ƒŠƒ†Ǥ
Persons not liable for Registration [Section 23]
ͳǤ Š‡ˆ‘ŽŽ‘™‹‰’‡”•‘••ŠƒŽŽ‘–„‡Ž‹ƒ„Ž‡–‘”‡‰‹•–”ƒ–‹‘ǡƒ‡Ž›ǣȂ
ȋƒȌ any person engaged exclusively in the business of supplying goods or services or both that are
not liable to tax or wholly exempt from tax —†‡” –Š‹• …– ‘” —†‡” –Š‡ –‡‰”ƒ–‡†
‘‘†• ƒ†
‡”˜‹…‡•ƒš…–Ǣ
ȋ„Ȍ ƒagriculturistǡ–‘–Š‡‡š–‡–‘ˆ•—’’Ž›‘ˆ’”‘†—…‡‘—–‘ˆ…—Ž–‹˜ƒ–‹‘‘ˆŽƒ†Ǥ
‡ƒ‹‰‘ˆ‰”‹…—Ž–—”‹•–ǣ
“agriculturist”Šƒ•„‡‡†‡ˆ‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ‡…–‹‘ʹ‘ˆ–Š‡
…–ǡʹͲͳ͹ǡ‡ƒ•ƒ‹†‹˜‹†—ƒŽ
‘”ƒ‹†—†‹˜‹†‡† ƒ‹Ž›™Š‘—†‡”–ƒ‡•…—Ž–‹˜ƒ–‹‘‘ˆŽƒ†Ȃ
ȋƒȌ „›‘™Žƒ„‘—”ǡ‘”
ȋ„Ȍ „›–Š‡Žƒ„‘—”‘ˆˆƒ‹Ž›ǡ‘”
 720 Lesson 15 Ȉ EP-TL

ȋ…Ȍ „›•‡”˜ƒ–•‘™ƒ‰‡•’ƒ›ƒ„Ž‡‹…ƒ•Š‘”‹†‘”„›Š‹”‡†Žƒ„‘—”—†‡”’‡”•‘ƒŽ•—’‡”˜‹•‹‘‘”–Š‡
’‡”•‘ƒŽ•—’‡”˜‹•‹‘‘ˆƒ›‡„‡”‘ˆ–Š‡ˆƒ‹Ž›Ǥ
ȋʹȌ Š‡
‘˜‡”‡– ƒ›ǡ ‘ –Š‡ ”‡…‘‡†ƒ–‹‘• ‘ˆ –Š‡ ‘—…‹Žǡ „› ‘–‹ϐ‹…ƒ–‹‘ǡ •’‡…‹ˆ› –Š‡ …ƒ–‡‰‘”› ‘ˆ
’‡”•‘•™Š‘ƒ›„‡‡š‡’–‡†ˆ”‘‘„–ƒ‹‹‰”‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–Ǥ
‘ŽŽ‘™‹‰Šƒ˜‡ƒŽ”‡ƒ†›„‡‡‘–‹ϐ‹‡†ǣ
Ǥ ‡”•‘•ƒ‹‰‘Ž›”‡˜‡”•‡…Šƒ”‰‡•—’’Ž‹‡•ǣ
 ‡”•‘•™Š‘ƒ”‡‘Ž›‡‰ƒ‰‡†‹ƒ‹‰•—’’Ž‹‡•‘ˆ–ƒšƒ„Ž‡‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–Š‡–‘–ƒŽ–ƒš‘™Š‹…Š
‹•Ž‹ƒ„Ž‡–‘„‡’ƒ‹†‘”‡˜‡”•‡…Šƒ”‰‡•„ƒ•‹•„›–Š‡”‡…‹’‹‡–‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š—†‡”•‡…–‹‘
ͻȋ͵ȌŠƒ˜‡„‡‡‡š‡’–‡†ˆ”‘‘„–ƒ‹‹‰”‡‰‹•–”ƒ–‹‘ǡȏ‘–‹ϐ‹…ƒ–‹‘‘ǤͷȀʹͲͳ͹†ƒ–‡†ͳͻǤͲ͸ǤʹͲͳ͹ȐǤ
Ǥ ‡”•‘•ƒ‹‰‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ–ƒšƒ„Ž‡•‡”˜‹…‡•‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”ȋ‡š…‡’–‹…ƒ•‡‘ˆ•’‡…‹ƒŽ…ƒ–‡‰‘”›
•–ƒ–‡•‘ˆ‹œ‘”ƒǡ”‹’—”ƒǡƒ‹’—”ƒ†ƒ‰ƒŽƒ†–Š‡Ž‹‹–‹••ǤͳͲǡͲͲǡͲͲͲȌǤ
Ǥ ‡”•‘• ƒ‹‰ ‹–‡”Ǧ–ƒ–‡ –ƒšƒ„Ž‡ •—’’Ž‹‡• ‘ˆ ‘–‹ϐ‹‡† Šƒ†‹…”ƒˆ– ‰‘‘†• —’–‘ •ǤʹͲǡͲͲǡͲͲͲ‹ ƒ ϐ‹ƒ…‹ƒŽ ›‡ƒ”
ȋ‡š…‡’–‹…ƒ•‡‘ˆ•’‡…‹ƒŽ…ƒ–‡‰‘”›•–ƒ–‡•‘ˆ‹œ‘”ƒǡ”‹’—”ƒǡƒ‹’—”ƒ†ƒ‰ƒŽƒ†–Š‡Ž‹‹–‹••ǤͳͲǡͲͲǡͲͲͲȌǤ
Ǥ ƒ•—ƒŽ ƒšƒ„Ž‡ ’‡”•‘ ƒ‹‰ ‹–‡”Ǧ•–ƒ–‡ –ƒšƒ„Ž‡ •—’’Ž‹‡• ‘ˆ ‘–‹ϐ‹‡† Šƒ†‹…”ƒˆ– ‰‘‘†• ‹ ƒ ϐ‹ƒ…‹ƒŽ ›‡ƒ”
ȋ‡š…‡’–‹…ƒ•‡‘ˆ•’‡…‹ƒŽ…ƒ–‡‰‘”›•–ƒ–‡•‘ˆ‹œ‘”ƒǡ”‹’—”ƒǡƒ‹’—”ƒ†ƒ‰ƒŽƒ†–Š‡Ž‹‹–‹••ǤͳͲǡͲͲǡͲͲͲȌǤ
Compulsory Registration in certain cases [Section 24]
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹʹǡ–Š‡ˆ‘ŽŽ‘™‹‰…ƒ–‡‰‘”‹‡•‘ˆ’‡”•‘••ŠƒŽŽ „‡
”‡“—‹”‡†–‘„‡”‡‰‹•–‡”‡†—†‡”–Š‹•…–ǡȂ
ȋ‹Ȍ ’‡”•‘•ƒ‹‰ƒ›‹–‡”Ǧ–ƒ–‡–ƒšƒ„Ž‡•—’’Ž›Ǥ‘™‡˜‡”ǡ–Š‡–Š”‡•Š‘Ž†Ž‹‹–‘ˆ•ǤʹͲƒ…•ȋ•ǤͳͲƒ…•‹…ƒ•‡
‘ˆ •’‡…‹ƒŽ …ƒ–‡‰‘”› •–ƒ–‡• ‘ˆ ‹œ‘”ƒǡ ”‹’—”ƒǡ ƒ‹’—” ƒ† ƒ‰ƒŽƒ†Ȍ ‹• ƒ˜ƒ‹Žƒ„Ž‡ ‹ …ƒ•‡ ‘ˆ ‹–‡”Ǧ•–ƒ–‡
•—’’Ž›‘ˆ–ƒšƒ„Ž‡•‡”˜‹…‡•ƒ†‘ˆ‘–‹ϐ‹‡†Šƒ†‹…”ƒˆ–‰‘‘†•Ǣ
ȋ‹‹Ȍ …ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘•ƒ‹‰–ƒšƒ„Ž‡•—’’Ž›Ǥ‘™‡˜‡”ǡ–Š‡–Š”‡•Š‘Ž†Ž‹‹–‘ˆ•ǤʹͲƒ…•ȋ•ǤͳͲƒ…•‹…ƒ•‡
‘ˆ •’‡…‹ƒŽ …ƒ–‡‰‘”› •–ƒ–‡• ‘ˆ ‹œ‘”ƒǡ ”‹’—”ƒǡ ƒ‹’—” ƒ† ƒ‰ƒŽƒ†Ȍ ‹• ƒ˜ƒ‹Žƒ„Ž‡ ‹ …ƒ•‡ ‘ˆ ‹–‡”Ǧ•–ƒ–‡
•—’’Ž‹‡•‘ˆ‘–‹ϐ‹‡†Šƒ†‹…”ƒˆ–‰‘‘†•ƒ†ƒ˜ƒ‹Ž‹‰–Š‡„‡‡ϐ‹–‘ˆ‡š‡’–‹‘ˆ”‘”‡‰‹•–”ƒ–‹‘ƒ•‡–‹‘‡†‹
’‘‹–ȋ‹Ȍƒ„‘˜‡Ǣ
ȋ‹‹‹Ȍ ’‡”•‘•™Š‘ƒ”‡”‡“—‹”‡†–‘’ƒ›–ƒš—†‡””‡˜‡”•‡…Šƒ”‰‡Ǣ
ȋ‹˜Ȍ ’‡”•‘•™Š‘ƒ”‡”‡“—‹”‡†–‘’ƒ›–ƒš—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ͻǢ
ȋ˜Ȍ ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘•ƒ‹‰–ƒšƒ„Ž‡•—’’Ž›Ǣ
ȋ˜‹Ȍ ’‡”•‘•™Š‘ƒ”‡”‡“—‹”‡†–‘†‡†—…––ƒš—†‡”•‡…–‹‘ͷͳǡ™Š‡–Š‡”‘”‘–•‡’ƒ”ƒ–‡Ž›”‡‰‹•–‡”‡†—†‡”–Š‹•…–Ǣ
ȋ˜‹‹Ȍ ’‡”•‘•™Š‘ƒ‡–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘„‡ŠƒŽˆ‘ˆ‘–Š‡”–ƒšƒ„Ž‡’‡”•‘•™Š‡–Š‡”ƒ•
ƒƒ‰‡–‘”‘–Š‡”™‹•‡Ǣ
ȋ˜‹‹‹Ȍ ’—–‡”˜‹…‡‹•–”‹„—–‘”ǡ™Š‡–Š‡”‘”‘–•‡’ƒ”ƒ–‡Ž›”‡‰‹•–‡”‡†—†‡”–Š‹•…–Ǣ
ȋ‹šȌ’‡”•‘•™Š‘•—’’Ž›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‘–Š‡”–Šƒ•—’’Ž‹‡••’‡…‹ϐ‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘
ͻǡ–Š”‘—‰Š•—…Š‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”™Š‘‹•”‡“—‹”‡†–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡—†‡”•‡…–‹‘ͷʹǢ
ȋšȌ ‡˜‡”›‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”™Š‘‹•”‡“—‹”‡†–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡—†‡”•‡…–‹‘ͷʹǢ
ȋš‹Ȍ ‡˜‡”› ’‡”•‘ •—’’Ž›‹‰ ‘Ž‹‡ ‹ˆ‘”ƒ–‹‘ ƒ† †ƒ–ƒ„ƒ•‡ ƒ……‡•• ‘” ”‡–”‹‡˜ƒŽ •‡”˜‹…‡• ˆ”‘ ƒ ’Žƒ…‡‘—–•‹†‡
†‹ƒ–‘ƒ’‡”•‘‹†‹ƒǡ‘–Š‡”–Šƒƒ”‡‰‹•–‡”‡†’‡”•‘Ǣƒ†
ȋš‹‹Ȍ •—…Š‘–Š‡”’‡”•‘‘”…Žƒ••‘ˆ’‡”•‘•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹ŽǤ
Analysis

–‡”•‘ˆ‡…–‹‘ʹʹȋ‡”•‘•Ž‹ƒ„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘Ȍ‘ˆ–Š‡
…–ǡʹͲͳ͹–Š‡‡š’”‡••‹‘Dz•’‡…‹ƒŽ…ƒ–‡‰‘”›–ƒ–‡•dz
•ŠƒŽŽ ‡ƒ –Š‡ –ƒ–‡• ƒ• •’‡…‹ϐ‹‡† ‹ •—„Ǧ…Žƒ—•‡ ȋ‰Ȍ ‘ˆ …Žƒ—•‡ ȋͶȌ ‘ˆ”–‹…Ž‡ ʹ͹ͻ‘ˆ –Š‡ ‘•–‹–—–‹‘‡š…‡’––Š‡
–ƒ–‡•Ȁ‹‘‡””‹–‘”›‘ˆ
ͳȌ ƒ—ƒ†ƒ•Š‹”ǡ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 721

ʹȌ ”—ƒ…ŠƒŽ”ƒ†‡•Šǡ
͵Ȍ ••ƒǡ
ͶȌ ‹ƒ…ŠƒŽ”ƒ†‡•Šǡ
ͷȌ ‡‰ŠƒŽƒ›ƒǡ
͸Ȍ ‹‹Ƭ
͹Ȍ ––ƒ”ƒŠƒ†Ǥ
‘–ƒŽͳͳ•’‡…‹ƒŽ…ƒ–‡‰‘”›•–ƒ–‡•Ȁ‹‘–‡””‹–‘”›ƒ”‡’”‘˜‹†‡†—†‡”•—„Ǧ…Žƒ—•‡ȋ‰Ȍ‘ˆ…Žƒ—•‡ȋͶȌ‘ˆ”–‹…Ž‡ʹ͹ͻ‘ˆ–Š‡
‘•–‹–—–‹‘ ™Š‹…Šƒ”‡ƒ•„‡Ž‘™ǣ
ͳȌ ƒ—ƒ†ƒ•Š‹”ǡ
ʹȌ ”—ƒ…ŠƒŽ”ƒ†‡•Šǡ
͵Ȍ ••ƒǡ
ͶȌ ‹ƒ…ŠƒŽ”ƒ†‡•Šǡ
ͷȌ ‡‰ŠƒŽƒ›ƒǡ
͸Ȍ ‹‹ǡ
͹Ȍ ––ƒ”ƒŠƒ†ǡ
ͺȌ ƒ‹’—”ǡ
ͻȌ ‹œ‘”ƒǡ
ͳͲȌ ƒ‰ƒŽƒ†ǡƒ†
ͳͳȌ ”‹’—”ƒ

Š‡”‡ˆ‘”‡ǡˆ‘”–Š‡’—”’‘•‡‘ˆ”‡‰‹•–”ƒ–‹‘—†‡”
Žƒ™•‘Ž›Ͷ–ƒ–‡•ƒ”‡•’‡…‹ƒŽ…ƒ–‡‰‘”›–ƒ–‡•™Š‹…Šƒ”‡ ƒ•
„‡Ž‘™ǣ
ͳȌ ƒ‹’—”ǡ
ʹȌ ‹œ‘”ƒǡ
͵Ȍ ƒ‰ƒŽƒ†ǡƒ†
ͶȌ ”‹’—”ƒ

Threshold limit for registration for those engaged in exclusive supply of goods enhanced to Rs. 40 lacs vide
‘–‹ϐ‹…ƒ–‹‘‘ǤͳͲȀʹͲͳͻȂ‡–”ƒŽƒš†ƒ–‡†͹–Šƒ”…ŠǡʹͲͳͻ‡š…‡’–
Ȉ ‡”•‘•‡‰ƒ‰‡†‹ƒ‹‰‹–”ƒǦ–ƒ–‡•—’’Ž‹‡•‹–Š‡–ƒ–‡•‘ˆ
ͳȌ ”—ƒ…ŠƒŽ”ƒ†‡•Šǡ
ʹȌ ƒ‹’—”ǡ
͵Ȍ ‡‰ŠƒŽƒ›ƒǡ
ͶȌ ‹œ‘”ƒǡ
ͷȌ ƒ‰ƒŽƒ†ǡ
͸Ȍ —†—…Š‡””›ǡ
͹Ȍ ‹‹ǡ
ͺȌ ‡Žƒ‰ƒƒǡ
ͻȌ ”‹’—”ƒǡ
ͳͲȌ ––ƒ”ƒŠƒ†Ǥ
Ȉ ‡”•‘•”‡“—‹”‡†–‘–ƒ‡…‘’—Ž•‘”›”‡‰‹•–”ƒ–‹‘—†‡”•‡…–‹‘ʹͶ
Ȉ —’’Ž‹‡”•‘ˆ
 722 Lesson 15 Ȉ EP-TL

Ȉ …‡…”‡ƒƒ†‘–Š‡”‡†‹„Ž‡‹…‡ǡ™Š‡–Š‡”‘”‘–…‘–ƒ‹‹‰…‘…‘ƒǢ
Š”‡•Š‘Ž† Ž‹‹– ˆ‘” ”‡‰‹•–”ƒ–‹‘
Ȉ ƒƒ•ƒŽƒǢ ˆ‘” •‡”˜‹…‡ ’”‘˜‹†‡”• ™‘—Ž†
Ȉ ‘„ƒ……‘ƒ†ƒ—ˆƒ…–—”‡†–‘„ƒ……‘•—„•–‹–—–‡•Ǥ …‘–‹—‡ –‘ „‡ •Ǥ ʹͲ ŽƒŠ• ƒ†
‹…ƒ•‡‘ˆ•’‡…‹ƒŽ …ƒ–‡‰‘”›–ƒ–‡•
Ȉ ‡”•‘•–ƒ‹‰˜‘Ž—–ƒ”›”‡‰‹•–”ƒ–‹‘—†‡”•‡…–‹‘ʹͷȋ͵Ȍ
•ǤͳͲŽƒŠ•Ǥ

Threshold Limit for Registration for Suppliers of Goods

Rs. 20 Lacs Rs. 40 Lacs
1. ”—ƒ…ŠƒŽ”ƒ†‡•Š ‡ƒ‹‹‰ʹͳ–ƒ–‡•ƒ†ͷ‹‘‡””‹–‘”‹‡•Ǥ
2. Meghalaya
3. —†—…Š‡””›
4. ‹‹
5. Telangana
6. ––ƒ”ƒŠƒ†
7. ƒ‹’—”
8. ‹œ‘”ƒ
9. ƒ‰ƒŽƒ†
10. ”‹’—”ƒ
Notes:
ͳǤ ‘”–Š‡’—”’‘•‡‘ˆ
ǡ‡ŽŠ‹ƒ†—†—…Š‡””›ƒ”‡…‘•‹†‡”‡†ƒ•–ƒ–‡•ǤŠ‡”‡ˆ‘”‡ǡ–Š‡”‡ƒ”‡–‘–ƒŽ͵ͳ
–ƒ–‡•™Š‡”‡
Ϊ
‹•Ž‡˜‹‡†ƒ†ͷ‹‘‡””‹–‘”‹‡•™Š‡”‡
Ϊ
‹•Ž‡˜‹‡†‘‹–”ƒǦ•–ƒ–‡
•—’’Ž‹‡•Ǥ
ʹǤ …ƒ•‡‘ˆ‹–‡”Ǧ•–ƒ–‡•—’’Ž›‘ˆ‰‘‘†•”‡‰‹•–”ƒ–‹‘‹•ƒ†ƒ–‘”›—Ȁ•ʹͶ‘ˆ–Š‡
…–ǡ ʹͲͳ͹„—––Š‡
‡š‡’–‹‘‹•‰”ƒ–‡†–‘’‡”•‘ƒ‹‰‹–‡”Ǧ•–ƒ–‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆŠƒ†‹…”ƒˆ–‰‘‘†•—’–‘ƒƒ‰‰”‡‰ƒ–‡
–—”‘˜‡”‘ˆ•ǤʹͲŽƒ…•ƒ•Ž‘‰ƒ•–Š‡’‡”•‘Šƒ•ƒƒ†–Š‡‰‘‘†•‘˜‡—†‡”–Š‡…‘˜‡”‘ˆƒ‡Ǧ™ƒ›
„‹ŽŽǡ‹””‡•’‡…–‹˜‡ ‘ˆ–Š‡˜ƒŽ—‡‘ˆ–Š‡…‘•‹‰‡–Ǥ

Threshold Limit for Registration for Suppliers of Services

Rs. 10 Lacs Rs. 20 Lacs
ͳǤ ƒ‹’—” ‡ƒ‹‹‰ʹ͹–ƒ–‡•ƒ†ͷ‹‘‡””‹–‘”‹‡•Ǥ
ʹǤ ‹œ‘”ƒ
͵Ǥ ƒ‰ƒŽƒ†
ͶǤ ”‹’—”ƒ
Notes:
ͳǤ ‡”˜‹…‡•—’’Ž‹‡”•ƒ”‡‘–‡Ž‹‰‹„Ž‡ˆ‘”‡š‡’–‹‘Ž‹‹–‘ˆ•ǤͶͲƒ…•Ǥ
ʹǤ ŽŽ•‡”˜‹…‡’”‘˜‹†‡”•ǡ™Š‡–Š‡”•—’’Ž›‹‰‹–”ƒǦ•–ƒ–‡ǡ‹–‡”Ǧ•–ƒ–‡‘”–Š”‘—‰Š‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”ǡ™‹ŽŽ
„‡ ‡š‡’– ˆ”‘ ‘„–ƒ‹‹‰
”‡‰‹•–”ƒ–‹‘ǡ ’”‘˜‹†‡† –Š‡‹” ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” †‘‡•ǯ– ‡š…‡‡† •Ǥ ʹͲ
Žƒ…•ȋ•Ǥ ͳͲŽƒ…•‹…ƒ•‡‘ˆƒ‹’—”ǡ‹œ‘”ƒǡƒ‰ƒŽƒ†Ƭ”‹’—”ƒȌǤ
͵Ǥ ƒ†ƒ–‘”›”‡‰‹•–”ƒ–‹‘‹•”‡“—‹”‡†ˆ‘”‘Ž›–Š‘•‡‡Ǧ…‘‡”…‡‘’‡”ƒ–‘”•™Š‘ƒ”‡”‡“—‹”‡†–‘…‘ŽŽ‡…––ƒš
at •‘—”…‡Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 723

Threshold Limit for Registration for Suppliers of Ice cream and other edible ice, whether or
not containing cocoa; Pan masala; Tobacco and manufactured tobacco substitutes
Rs. 10 Lacs Rs. 20 Lacs
ͳǤƒ‹’—” ‡ƒ‹‹‰ʹ͹–ƒ–‡•ƒ†ͷ‹‘‡””‹–‘”‹‡•Ǥ
ʹǤ‹œ‘”ƒ
͵Ǥƒ‰ƒŽƒ†
ͶǤ”‹’—”ƒ
Notes:
ͳǤŠ‡•‡•—’’Ž‹‡”•ƒ”‡ƒŽ•‘‘–‡Ž‹‰‹„Ž‡ˆ‘”‡š‡’–‹‘Ž‹‹–‘ˆ•ǤͶͲƒ…•Ǥ
ʹǤ‡‰‹•–”ƒ–‹‘‹•ƒ†ƒ–‘”›‹…ƒ•‡‘ˆ‹–‡”Ǧ•–ƒ–‡•—’’Ž›‘ˆ–Š‡•‡‰‘‘†•Ǥ

Ȉ ‘”ƒ•—’’Ž‹‡”™Š‘ƒ‡•‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•Ǣ
Ȉ ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘Ǣ
Ȉ ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘Ǣ
Ȉ Ǧ…‘‡”…‡‘’‡”ƒ–‘”•Ǣƒ†
Ȉ ‡”•‘•†‹•…Šƒ”‰‹‰Ž‹ƒ„‹Ž‹–‹‡•—†‡””‡˜‡”•‡…Šƒ”‰‡‡…Šƒ‹•Ǣ
Ȉ ‡”•‘™Š‘ƒ”‡”‡“—‹”‡†–‘’ƒ›–ƒš—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ͻǢ
Ȉ ‡”•‘•™Š‘ƒ”‡”‡“—‹”‡†–‘†‡†—…––ƒš—†‡”•‡…–‹‘ͷͳǡ™Š‡–Š‡”‘”‘–
•‡’ƒ”ƒ–‡Ž›”‡‰‹•–‡”‡†—†‡”–Š‹•…–Ǣ
Ȉ ‡”•‘•™Š‘ƒ‡–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘„‡ŠƒŽˆ
‘ˆ‘–Š‡”–ƒšƒ„Ž‡’‡”•‘•™Š‡–Š‡”ƒ•ƒƒ‰‡–‘”‘–Š‡”™‹•‡Ǣ
Ȉ ’—–‡”˜‹…‡‹•–”‹„—–‘”Ǣ
Ȉ ‡”•‘• ™Š‘ •—’’Ž› ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Šǡ ‘–Š‡” –Šƒ •—’’Ž‹‡•
Compulsory Registration
•’‡…‹ϐ‹‡† —†‡” •—„Ǧ•‡…–‹‘ ȋͷȌ ‘ˆ •‡…–‹‘ ͻǡ –Š”‘—‰Š •—…Š ‡Ž‡…–”‘‹…
…‘‡”…‡‘’‡”ƒ–‘”™Š‘‹•”‡“—‹”‡†–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡—†‡”•‡…–‹‘ͷʹǢ
Ȉ ˜‡”› ’‡”•‘ •—’’Ž›‹‰ ‘Ž‹‡ ‹ˆ‘”ƒ–‹‘ ƒ† †ƒ–ƒ„ƒ•‡ ƒ……‡•• ‘”
”‡–”‹‡˜ƒŽ•‡”˜‹…‡•ˆ”‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒ–‘ƒ’‡”•‘‹†‹ƒǡ‘–Š‡”
–Šƒƒ”‡‰‹•–‡”‡†’‡”•‘Ǣ
Ȉ ›‘–Š‡”‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹ŽǤ

ŽŽ •‡”˜‹…‡ ’”‘˜‹†‡”•ǡ ™Š‡–Š‡” •—’’Ž›‹‰ ‹–”ƒǦ–ƒ–‡ǡ ‹–‡”Ǧ–ƒ–‡ ‘”

–Š”‘—‰Š ‡Ǧ…‘‡”…‡ ‘’‡”ƒ–‘”ǡ ™‹ŽŽ „‡ ‡š‡’– ˆ”‘ ‘„–ƒ‹‹‰

”‡‰‹•–”ƒ–‹‘ǡ ’”‘˜‹†‡† –Š‡‹” ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” †‘‡•ǯ– ‡š…‡‡† •ǤʹͲ
Žƒ…•ȋ•ǤͳͲŽƒ…•‹…ƒ•‡‘ˆƒ‹’—”ǡ‹œ‘”ƒǡƒ‰ƒŽƒ†Ƭ”‹’—”ƒȌǤ

Ȉ ‰ƒ‰‡† ‡š…Ž—•‹˜‡Ž› ‹ –Š‡ •—’’Ž› ‘ˆ ‰‘‘†•Ȁ •‡”˜‹…‡•Ȁ „‘–Š ™Š‹…Š ƒ”‡
‘–Ž‹ƒ„Ž‡–‘–ƒšǢ
Persons not liable Ȉ ‰ƒ‰‡† ‡š…Ž—•‹˜‡Ž› ‹ –Š‡ •—’’Ž› ‘ˆ ‰‘‘†•Ȁ •‡”˜‹…‡•Ȁ „‘–Š ™Š‹…Š ƒ”‡
to register ™Š‘ŽŽ›‡š‡’–ˆ”‘–ƒšǢ
Ȉ ‰”‹…—Ž–—”ƒŽ‹•––‘–Š‡‡š–‡–‘ˆ•—’’Ž›‘ˆ’”‘†—…‡ˆ”‘Žƒ†…—Ž–‹˜ƒ–‹‘Ǣƒ†
Ȉ ’‡…‹ϐ‹‡†…ƒ–‡‰‘”‹‡•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–Ǥ
 724 Lesson 15 Ȉ EP-TL

Procedure for Registration [Section 25]

‹‡‹‹––‘ƒ’’Ž›ˆ‘””‡‰‹•–”ƒ–‹‘ȏ‡…–‹‘ʹͷȋͳȌȐ
Ȉ ‡”•‘”‡‰‹•–‡”‡†—†‡”‡…–‹‘ʹʹ‘”ʹͶǣ˜‡”›’‡”•‘™Š‘‹•Ž‹ƒ„Ž‡–‘”‡‰‹•–‡”Š‹•‡Žˆ—†‡”–Š‡
…–ǡ
ʹͲͳ͹—†‡”‡…–‹‘ʹʹ‘”ʹͶ—•–†‘•‘™‹–Š‹–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡™Š‡Š‡„‡…‘‡•ϐ‹”•–Ž‹ƒ„Ž‡‹‡˜‡”›
•—…Š•–ƒ–‡Ȁ‹™Š‹…ŠŠ‡‹••‘Ž‹ƒ„Ž‡
”‘˜‹•‘–‘•‡…–‹‘ʹͷȋͳȌ
ƒ•—ƒŽȀ‘Ǧ‡•‹†‡––ƒšƒ„Ž‡’‡”•‘ǣƒ–Ž‡ƒ•–ϐ‹˜‡†ƒ›•’”‹‘”–‘…‘‡…‡‡–‘ˆ„—•‹‡••‹‡˜‡”›•—…Š•–ƒ–‡Ȁ
‹™Š‹…ŠŠ‡‹••‘Ž‹ƒ„Ž‡Ǥ
ˆ–Š‡’”‘’‡”‘ˆϐ‹…‡”†‘‡•ǯ––ƒ‡ƒ›ƒ…–‹‘™‹–Š‹–Š”‡‡†ƒ›•‘ˆ•—„‹••‹‘‘ˆƒ’’Ž‹…ƒ–‹‘ƒŽ‘‰™‹–Š‡…‡••ƒ”›
†‡–ƒ‹Ž•ƒ††‘…—‡–•ǡ‘”™‹–Š‹•‡˜‡†ƒ›•‘ˆ”‡…‡‹˜‹‰–Š‡…Žƒ”‹ϐ‹…ƒ–‹‘••‘•‘Ž‹…‹–‡†ǡ–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”‰”ƒ–‘ˆ
”‡‰‹•–”ƒ–‹‘‹•†‡‡‡†–‘„‡ƒ’’”‘˜‡†Ǥ
Š‡‡ˆˆ‡…–‹˜‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‹•ǣ
Ȉ …ƒ•‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹••—„‹––‡†™‹–Š‹͵Ͳ†ƒ›•‘ˆ–Š‡’‡”•‘„‡…‘‹‰Ž‹ƒ„Ž‡–‘”‡‰‹•–‡”ǡ‹–•ŠƒŽŽ„‡
–Š‡†ƒ–‡‘™Š‹…Š–Š‡’‡”•‘„‡…‘‡•Ž‹ƒ„Ž‡
Ȉ †‹ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹••—„‹––‡†ƒˆ–‡”͵Ͳ†ƒ›•‘ˆ–Š‡’‡”•‘„‡…‘‹‰Ž‹ƒ„Ž‡–‘”‡‰‹•–‡”ǡ‹–•ŠƒŽŽ„‡–Š‡
†ƒ–‡‘™Š‹…Š–Š‡”‡‰‹•–”ƒ–‹‘‹•‰”ƒ–‡†Ǥ
Section 2(20) ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹†‡ϐ‹‡•Dz…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘dzƒ•ƒ’‡”•‘™Š‘‘……ƒ•‹‘ƒŽŽ›
—†‡”–ƒ‡•–”ƒ•ƒ…–‹‘•‹˜‘Ž˜‹‰•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‹–Š‡…‘—”•‡‘”ˆ—”–Š‡”ƒ…‡‘ˆ„—•‹‡••ǡ™Š‡–Š‡”
ƒ•’”‹…‹’ƒŽǡƒ‰‡–‘”‹ƒ›‘–Š‡”…ƒ’ƒ…‹–›ǡ‹ƒ–ƒ–‡‘”ƒ‹‘–‡””‹–‘”›™Š‡”‡Š‡Šƒ•‘ϐ‹š‡†’Žƒ…‡‘ˆ„—•‹‡••Ǥ
Š—•ǡƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘‹••‘‡‘‡™Š‘Šƒ•ƒ„—•‹‡••‹ƒ†‹ˆˆ‡”‡–•–ƒ–‡ǡ„—–…‘‡•–‘ƒ†‹ˆˆ‡”‡–•–ƒ–‡ˆ‘”ƒ
„—•‹‡••’—”’‘•‡–‡’‘”ƒ”‹Ž›Ǥ
‘”‡šƒ’Ž‡ǡƒˆ‘‘–™‡ƒ”†‡ƒŽ‡””‡‰‹•–‡”‡†‹‰”ƒ…‘‡•ˆ‘”ƒ‡šŠ‹„‹–‹‘ƒ–œƒ†ƒ‹†ƒǡ—„ƒ‹ˆ‘”’ƒ”–‹…‹’ƒ–‹‰
‹–Š‡‡šŠ‹„‹–‹‘ǡ–Š‡•—…Š’‡”•‘™‘—Ž†‡‡†–‘”‡‰‹•–‡”ƒ•ƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘ƒ–—„ƒ‹ƒ†Š‡™‹ŽŽ„‡
‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘ˆ‘”ƒƒš‹—’‡”‹‘†‘ˆͻͲ†ƒ›•Ǥ
Section 2(77) ‘ˆ ‡–”ƒŽ
‘‘†• Ƭ ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹ †‡ϐ‹‡• ‘”‡šƒ’Ž‡ǡƒ’‡”•‘ˆ”‘ƒ”‹•ǡ…‘‡•
Dz‘Ǧ”‡•‹†‡– –ƒšƒ„Ž‡ ’‡”•‘dz ƒ• ƒ› ’‡”•‘ ™Š‘ ‘……ƒ•‹‘ƒŽŽ› –‘ ’ƒ”–‹…‹’ƒ–‡ ‹ ƒ ‡šŠ‹„‹–‹‘ ƒ– œƒ†
—†‡”–ƒ‡• –”ƒ•ƒ…–‹‘• ‹˜‘Ž˜‹‰ •—’’Ž› ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” ƒ‹†ƒǡ —„ƒ‹ ˆ‘” ’ƒ”–‹…‹’ƒ–‹‰ ‹
„‘–Šǡ™Š‡–Š‡”ƒ•’”‹…‹’ƒŽ‘”ƒ‰‡–‘”‹ƒ›‘–Š‡”…ƒ’ƒ…‹–›ǡ„—–™Š‘ –Š‡‡šŠ‹„‹–‹‘ǡ–Š‡•—…Š’‡”•‘™‘—Ž†
Šƒ•‘ϐ‹š‡†’Žƒ…‡‘ˆ„—•‹‡••‘””‡•‹†‡…‡‹†‹ƒǤ ‡‡† –‘ ”‡‰‹•–‡” ƒ• ƒ ‘Ǧ”‡•‹†‡– –ƒš-
ƒ„Ž‡ ’‡”•‘ ƒ– —„ƒ‹ ƒ† Š‡ ™‹ŽŽ „‡
‡…‡ǡ ƒ ‘Ǧ”‡•‹†‡– –ƒšƒ„Ž‡ ’‡”•‘ ‹• •‘‡‘‡ ™Š‘ Šƒ• ƒ ‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘ˆ‘”ƒƒš‹—’‡-
„—•‹‡••‘—–•‹†‡†‹ƒǡ„—–…‘‡•–‘ƒ†‹ˆˆ‡”‡–•–ƒ–‡ˆ‘”ƒ„—•‹‡•• ”‹‘†‘ˆͻͲ†ƒ›•Ǥ
’—”’‘•‡–‡’‘”ƒ”‹Ž›Ǥ

Effective date of
registration

…ƒ•‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹•
ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹•submitted
submitted within 30 days ‘ˆ
after 30 days ‘ˆ–Š‡’‡”•‘
–Š‡’‡”•‘„‡…‘‹‰
„‡…‘‹‰Ž‹ƒ„Ž‡–‘”‡‰‹•–‡”
Ž‹ƒ„Ž‡–‘”‡‰‹•–‡”

–•ŠƒŽŽ„‡–Š‡†ƒ–‡‘™Š‹…Š –•ŠƒŽŽ„‡–Š‡†ƒ–‡‘™Š‹…Š–Š‡
–Š‡’‡”•‘„‡…‘‡•Ž‹ƒ„Ž‡ ”‡‰‹•–”ƒ–‹‘‹•‰”ƒ–‡†
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 725

Registration State wise [Section 25(2) read with rule 11]

”†‹ƒ”‹Ž›ǡƒ’‡”•‘•‡‡‹‰”‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–•ŠƒŽŽ „‡‰”ƒ–‡†ƒ•‹‰Ž‡”‡‰‹•–”ƒ–‹‘‹ƒ–ƒ–‡‘”‹‘
–‡””‹–‘”›Ǥ ‘™‡˜‡”ǡ ƒ ’‡”•‘ Šƒ˜‹‰ —Ž–‹’Ž‡ ’Žƒ…‡• ‘ˆ „—•‹‡•• ‹ ƒ –ƒ–‡ ‘” ‹‘ –‡””‹–‘”› ƒ› „‡ ‰”ƒ–‡† ƒ
•‡’ƒ”ƒ–‡”‡‰‹•–”ƒ–‹‘ˆ‘”‡ƒ…Š•—…Š’Žƒ…‡‘ˆ„—•‹‡••Ǥ
Registration for a Unit in SEZ [Second Proviso to section 25(1)]
–ƒ›ƒŽ•‘„‡‘–‡†–Šƒ–ƒ’‡”•‘Šƒ˜‹‰ƒ—‹–‹ƒ’‡…‹ƒŽ…‘‘‹…‘‡ȋȌ‘”„‡‹‰ƒ’‡…‹ƒŽ…‘‘‹…
‘‡†‡˜‡Ž‘’‡”•ŠƒŽŽŠƒ˜‡–‘ƒ’’Ž›ˆ‘”ƒ•‡’ƒ”ƒ–‡”‡‰‹•–”ƒ–‹‘ǡƒ•†‹•–‹…–ˆ”‘Š‹•’Žƒ…‡‘ˆ„—•‹‡••Ž‘…ƒ–‡†‘—–•‹†‡
–Š‡’‡…‹ƒŽ…‘‘‹…‘‡‹–Š‡•ƒ‡–ƒ–‡‘”‹‘–‡””‹–‘”›
Registration in case of Supply from Territorial water [Explanation to section 25(1)]
Š‡”‡ǡƒ’‡”•‘ƒ‡•ƒ•—’’Ž›ˆ”‘–Š‡–‡””‹–‘”‹ƒŽ™ƒ–‡”•‘ˆ†‹ƒǡ‹–•ŠƒŽŽ‘„–ƒ‹”‡‰‹•–”ƒ–‹‘‹–Š‡…‘ƒ•–ƒŽ–ƒ–‡
‘”‹‘–‡””‹–‘”›™Š‡”‡–Š‡‡ƒ”‡•–’‘‹–‘ˆ–Š‡ƒ’’”‘’”‹ƒ–‡„ƒ•‡Ž‹‡‹•Ž‘…ƒ–‡†Ǥ
Voluntary Registration [Section 25(3)]
’‡”•‘™Š‘‹•‘–Ž‹ƒ„Ž‡–‘”‡‰‹•–‡”‡†—Ȁ•ʹʹ‘”—Ȁ•ʹͶƒ›‰‡–Š‹•‡Žˆ”‡‰‹•–‡”‡†˜‘Ž—–ƒ”‹Ž›ƒ†ƒŽŽ’”‘˜‹•‹‘•‘ˆ
–Š‹•…–ƒ•ƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽƒ’’Ž›–‘•—…Š’‡”•‘Ǥ‘™‡˜‡”‘…‡ƒ’‡”•‘‘„–ƒ‹•˜‘Ž—–ƒ”›
”‡‰‹•–”ƒ–‹‘Š‡Šƒ•–‘’ƒ›–ƒš‡˜‡Š‹•ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”†‘‡•‘–‡š…‡‡†•ǤͶͲƒ…•ȀʹͲƒ…•ȀͳͲƒ…•ǡƒ•–Š‡…ƒ•‡
ƒ›„‡Ǥ
Distinct Person for each registration [Section 25(4)]
 ’‡”•‘ ™Š‘ Šƒ• ‘„–ƒ‹‡† ‘” ‹• ”‡“—‹”‡† –‘ ‘„–ƒ‹ ‘”‡ –Šƒ ‘‡ ”‡‰‹•–”ƒ–‹‘ǡ ™Š‡–Š‡” ‹ ‘‡ –ƒ–‡ ‘” ‹‘
–‡””‹–‘”›‘”‘”‡–Šƒ‘‡–ƒ–‡‘”‹‘–‡””‹–‘”›•ŠƒŽŽǡ‹”‡•’‡…–‘ˆ‡ƒ…Š•—…Š”‡‰‹•–”ƒ–‹‘ǡ„‡–”‡ƒ–‡†ƒ•†‹•–‹…–
’‡”•‘•ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…–Ǥ
Registration of Establishment [Section 25(5)]
Š‡”‡ƒ’‡”•‘™Š‘Šƒ•‘„–ƒ‹‡†‘”‹•”‡“—‹”‡†–‘‘„–ƒ‹”‡‰‹•–”ƒ–‹‘‹ƒ–ƒ–‡‘”‹‘–‡””‹–‘”›‹”‡•’‡…–‘ˆƒ
‡•–ƒ„Ž‹•Š‡–ǡŠƒ•ƒ‡•–ƒ„Ž‹•Š‡–‹ƒ‘–Š‡”–ƒ–‡‘”‹‘–‡””‹–‘”›ǡ–Š‡•—…Š‡•–ƒ„Ž‹•Š‡–••ŠƒŽŽ„‡–”‡ƒ–‡†
ƒ•‡•–ƒ„Ž‹•Š‡–•‘ˆ†‹•–‹…–’‡”•‘•ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…–Ǥ
Eligibility for Registration [Section 25(6)]
˜‡”›’‡”•‘•ŠƒŽŽŠƒ˜‡ƒ‡”ƒ‡–……‘—–—„‡”‹••—‡†—†‡”–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳ‹‘”†‡”–‘„‡‡Ž‹‰‹„Ž‡
ˆ‘” ‰”ƒ– ‘ˆ ”‡‰‹•–”ƒ–‹‘Ǥ ”‘˜‹†‡† –Šƒ– ƒ ’‡”•‘ ”‡“—‹”‡† –‘ †‡†—…– –ƒš —†‡” •‡…–‹‘ ͷͳ ƒ› Šƒ˜‡ǡ ‹ Ž‹‡— ‘ˆ ƒ
‡”ƒ‡–……‘—–—„‡”ǡƒƒš‡†—…–‹‘ƒ†‘ŽŽ‡…–‹‘……‘—–—„‡”‹••—‡†—†‡”–Š‡•ƒ‹†…–‹‘”†‡”–‘
„‡‡Ž‹‰‹„Ž‡ˆ‘”‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘Ǥ
Authentication Process [Section 25(6A)]
˜‡”›”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ—†‡”‰‘ƒ—–Š‡–‹…ƒ–‹‘ǡ‘”ˆ—”‹•Š’”‘‘ˆ‘ˆ’‘••‡••‹‘‘ˆƒ†Šƒƒ” —„‡”ǡ‹•—…Š
ˆ‘”ƒ†ƒ‡”ƒ†™‹–Š‹•—…Š–‹‡ƒ•ƒ›„‡’”‡•…”‹„‡†Ǣ
”‘˜‹†‡†–Šƒ–‹ˆƒ†Šƒƒ”—„‡”‹•‘–ƒ••‹‰‡†–‘–Š‡”‡‰‹•–‡”‡†’‡”•‘ǡ•—…Š’‡”•‘•ŠƒŽŽ„‡‘ˆˆ‡”‡†ƒŽ–‡”ƒ–‡ƒ†
˜‹ƒ„Ž‡‡ƒ•‘ˆ‹†‡–‹ϐ‹…ƒ–‹‘‹•—…Šƒ‡”ƒ•
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Ž’”‡•…”‹„‡Ǥ
”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– ‹ …ƒ•‡ ‘ˆ ˆƒ‹Ž—”‡ –‘ —†‡”‰‘ ƒ—–Š‡–‹…ƒ–‹‘ ‘” ˆ—”‹•Š ’‘••‡••‹‘ ‘ˆƒ†Šƒƒ” —„‡” ‘”
ˆ—”‹•Š ƒŽ–‡”ƒ–‡ ƒ† ˜‹ƒ„Ž‡ ‡ƒ• ‘ˆ ‹†‡–‹ϐ‹…ƒ–‹‘ǡ ”‡‰‹•–”ƒ–‹‘ ƒŽŽ‘––‡† –‘ •—…Š ’‡”•‘ •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡
‹˜ƒŽ‹†ƒ†–Š‡‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‡…–•ŠƒŽŽƒ’’Ž›ƒ•‹ˆ•—…Š’‡”•‘†‘‡•‘–Šƒ˜‡”‡‰‹•–”ƒ–‹‘Ǥȋ•‡”–‡†˜‹†‡
‹ƒ…‡ȋ‘ǤʹȌ…–ǡʹͲͳͻ™Ǥ‡ǤˆǤ†ƒ–‡ͲͳǤͲͳǤʹͲʹͲȌ
Analysis: ˜‡”› ‡š‹•–‹‰ ”‡‰‹•–‡”‡†
Section 25(6B):- ‘ƒ†ˆ”‘–Š‡†ƒ–‡‘ˆ‘–‹ϐ‹…ƒ–‹‘ǡ‡˜‡”›‹†‹˜‹†—ƒŽ †‡ƒŽ‡” •ŠƒŽŽ Šƒ˜‡ –‘ ‰‡– Š‹•‡Žˆ
•ŠƒŽŽǡ ‹ ‘”†‡” –‘ „‡ ‡Ž‹‰‹„Ž‡ ˆ‘” ‰”ƒ– ‘ˆ ”‡‰‹•–”ƒ–‹‘ǡ —†‡”‰‘ ˜‡”‹ϐ‹‡† ™‹–Š Š‡Ž’ ‘ˆ ƒ†Šƒƒ”
ƒ—–Š‡–‹…ƒ–‹‘ǡ ‘” ˆ—”‹•Š ’”‘‘ˆ ‘ˆ ’‘••‡••‹‘ ‘ˆ ƒ†Šƒƒ” —„‡”ǡ ‹ —„‡” ‘” „› ƒŽ–‡”ƒ–‡ ˜‹ƒ„Ž‡
•—…Šƒƒ‡”ǡƒ•–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘‘ˆ–Š‡ ‡ƒ• ™‹–Š‹ •’‡…‹ϐ‹‡† –‹‡ ‘” ‹–
‘—…‹Žǡ•’‡…‹ˆ›‹–Š‡•ƒ‹†‘–‹ϐ‹…ƒ–‹‘Ǣ •ŠƒŽŽ „‡ †‡‡‡† ƒ• ‹ˆ Š‡ †‘‡• ‘–
”‘˜‹†‡† –Šƒ– ‹ˆ ƒ†Šƒƒ” ‹• ‘– ƒ••‹‰‡† –‘ •—…Š ‹†‹˜‹†—ƒŽǡ •—…Š Šƒ˜‡ƒ›”‡‰‹•–”ƒ–‹‘Ǥ
 726 Lesson 15 Ȉ EP-TL

‹†‹˜‹†—ƒŽ•ŠƒŽŽ„‡‘ˆˆ‡”‡†ƒŽ–‡”ƒ–‡˜‹ƒ„Ž‡‡ƒ•‘ˆ‹†‡–‹ϐ‹…ƒ–‹‘‹•—…Šƒƒ‡”ǡƒ•–Š‡
‘˜‡”‡–ƒ›ǡ‘
–Š‡”‡…‘‡†ƒ–‹‘‘ˆ–Š‡‘—…‹Žǡ‹–Š‡•ƒ‹†‘–‹ϐ‹…ƒ–‹‘Ǥȋ‘–‹ϐ‹…ƒ–‹‘‘ǤͳͺȀʹͲʹͲǦ†ƒ–‡†Ǥʹ͵ǤͲ͵ǤʹͲʹͲ™Ǥ‡ǤˆǤ
ͲͳǤͲͶǤʹͲʹͲȌ
Section 25(6C): ‘ ƒ† ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ‘–‹ϐ‹…ƒ–‹‘ǡ
‡˜‡”›’‡”•‘ǡ‘–Š‡”–Šƒ‹†‹˜‹†—ƒŽǡ•ŠƒŽŽǡ‹‘”†‡”–‘„‡ Analysis:- ‘” ˆ”‡•Š ”‡‰‹•–”ƒ–‹‘ ‡˜‡”› ‹†‹˜‹†—ƒŽ
‡Ž‹‰‹„Ž‡ˆ‘”‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘ǡ—†‡”‰‘ƒ—–Š‡–‹…ƒ–‹‘ǡ •ŠƒŽŽ Šƒ˜‡ –‘ ƒ—–Š‡–‹…ƒ–‡ Š‹•‡Žˆ ™‹–Š ƒ†Šƒƒ”
‘” ˆ—”‹•Š ’”‘‘ˆ ‘ˆ ’‘••‡••‹‘ ‘ˆ ƒ†Šƒƒ” —„‡” ‘ˆ —„‡”Ǥ  …ƒ•‡ ƒ†Šƒƒ” —„‡” ‹• ‘– ƒ••‹‰‡†
ƒ”–ƒǡ ƒƒ‰‹‰ ‹”‡…–‘”ǡ ™Š‘Ž‡ ‹‡ ‹”‡…–‘”ǡ –‘ Š‹ǡ –Š‡ –Š‡ ”‡‰‹•–”ƒ–‹‘ •ŠƒŽŽ „‡
”ƒ–‡† ‘Ž›
”—•–‡‡•ǡ ƒ—–Š‘”‹•‡† ”‡’”‡•‡–ƒ–‹˜‡ǡ ƒ—–Š‘”‹•‡† ƒˆ–‡” ’Š›•‹…ƒŽ ˜‡”‹ϐ‹…ƒ–‹‘ ‘ˆ –Š‡ ’”‹…‹’Ž‡ ’Žƒ…‡ ‘ˆ
•‹‰ƒ–‹‘”›ǡ ƒ† •—…Š ‘–Š‡” …Žƒ•• ‘ˆ ’‡”•‘•ǡ ‹ •—…Š ƒ „—•‹‡••‹–Š‡’”‡•‡…‡‘ˆ–Š‡•ƒ‹†’‡”•‘ǡ‘–Žƒ–‡”
ƒ‡”ǡƒ•–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘ –Šƒ ͸Ͳ †ƒ›• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ƒ’’Ž‹…ƒ–‹‘ǡ ƒ† –Š‡
‘ˆ–Š‡‘—…‹Žǡ•’‡…‹ˆ›‹–Š‡•ƒ‹†‘–‹ϐ‹…ƒ–‹‘Ǥ ˜‡”‹ϐ‹…ƒ–‹‘ ”‡’‘”– ƒŽ‘‰ ™‹–Š –Š‡ ‘–Š‡” †‘…—‡–•ǡ
‹…Ž—†‹‰’Š‘–‘‰”ƒ’Š•ǡ•ŠƒŽŽ„‡—’Ž‘ƒ†‡†‹ ‘”

”‘˜‹†‡† –Šƒ– ™Š‡”‡ •—…Š ’‡”•‘ ‘” …Žƒ•• ‘ˆ ’‡”•‘• 
Ǧ͵Ͳ‘–Š‡‘‘’‘”–ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆͳͷ
Šƒ˜‡‘–„‡‡ƒ••‹‰‡†ƒ†Šƒƒ”—„‡”ǡ•—…Š’‡”•‘ ™‘”‹‰†ƒ›•ˆ‘ŽŽ‘™‹‰–Š‡†ƒ–‡‘ˆ •—…Š˜‡”‹ϐ‹…ƒ–‹‘Ǥ
‘” …Žƒ•• ‘ˆ ’‡”•‘• •ŠƒŽŽ „‡ ‘ˆˆ‡”‡† ƒŽ–‡”ƒ–‡ ˜‹ƒ„Ž‡
‡ƒ•‘ˆ‹†‡–‹ϐ‹…ƒ–‹‘‹•—…Šƒƒ‡”ƒ•–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘‘ˆ–Š‡‘—…‹Žǡ‹–Š‡•ƒ‹†
‘–‹ϐ‹…ƒ–‹‘Ǥȋ‘–‹ϐ‹…ƒ–‹‘‘ǤͳͻȀʹͲʹͲǦ†–Ǥʹ͵ǤͲ͵ǤʹͲʹͲ™Ǥ‡ǤˆǤͲͳǤͲͶǤʹͲʹͲȌ
Section 25(6D):Š‡”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘͸ƒ†͸‘”͸•ŠƒŽŽ‘–ƒ’’Ž›–‘•—…Š’‡”•‘‘”…Žƒ••‘ˆ’‡”•‘•
‘”ƒ›–ƒ–‡‘”‹‘–‡””‹–‘”›‘”ƒ”––Š‡”‡‘ˆǡƒ•–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ
•’‡…‹ˆ›„›‘–‹ϐ‹…ƒ–‹‘Ǥȋ‘–‹ϐ‹…ƒ–‹‘‘Ǥͳ͹ȀʹͲʹͲǦ†ƒ–‡†ʹ͵ǤͲ͵ǤʹͲʹͲ™Ǥ‡ǤˆǤͲͳǤͲͶǤʹͲʹͲȌ
Registration of Non-resident Taxable person [Section 25(7)]: ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ •—„Ǧ
•‡…–‹‘ȋ͸Ȍǡƒ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘ƒ›„‡‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘–Š‡„ƒ•‹•‘ˆ•—…Š
‘–Š‡”†‘…—‡–•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
‡‰‹•–”ƒ–‹‘ „› ’”‘’‡” ‘ˆϐ‹…‡” ȏ‡…–‹‘ ʹͷȋͺȌȐǣ Analysis:-  …ƒ•‡ ‘ˆ ’‡”•‘ ‘–Š‡” –Šƒ ‹†‹˜‹†—ƒŽ
Š‡”‡ƒ’‡”•‘™Š‘‹•Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†—†‡”–Š‹•
…–ˆƒ‹Ž•–‘‘„–ƒ‹”‡‰‹•–”ƒ–‹‘ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ
™‹–Š‘—– ’”‡Œ—†‹…‡ –‘ ƒ› ƒ…–‹‘ ™Š‹…Š ƒ› „‡ –ƒ‡
—†‡”–Š‹•…–‘”—†‡”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰
•—…Š ƒ• ƒ”–‡”•Š‹’ ϐ‹”ǡ ǡ ǡ ‘’ƒ›ǡ ”—•–
‡–…Ǥǡˆ‘” ‰‡––‹‰ˆ”‡•Š”‡‰‹•–”ƒ–‹‘ƒ—–Š‡–‹…ƒ–‹‘•ŠƒŽŽ
„‡ †‘‡ „›ƒ†Šƒƒ” —„‡” ‘ˆ ƒ”–‡”ǡ—–Š‘”‹•‡†
‹ˆ‘”…‡ǡ’”‘…‡‡†–‘”‡‰‹•–‡”•—…Š’‡”•‘‹•—…Šƒ‡”
ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Unique Identity Number [Section 25(9)]:
”ƒ–‡† ‘Ž› ƒˆ–‡” ’Š›•‹…ƒŽ ˜‡”‹ϐ‹…ƒ–‹‘ ‘ˆ –Š‡
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋͳȌǡȂ
ȋƒȌ ƒ› •’‡…‹ƒŽ‹•‡† ƒ‰‡…› ‘ˆ –Š‡ ‹–‡† ƒ–‹‘•
”‰ƒ‹•ƒ–‹‘ ‘” ƒ› —Ž–‹Žƒ–‡”ƒŽ ‹ƒ…‹ƒŽ
”‡’”‡•‡–ƒ–‹˜‡ǡ ƒƒ‰‹‰ ‹”‡…–‘”ǡ ”—•–‡‡ ‡–…Ǥ 
…ƒ•‡ƒ†Šƒƒ”—„‡”‹•‘–ƒ••‹‰‡†–‘•—…Š’‡”•‘
‘” …Žƒ•• ‘ˆ ’‡”•‘•ǡ –Š‡ –Š‡ ”‡‰‹•–”ƒ–‹‘ •ŠƒŽŽ „‡
’”‹…‹’Ž‡’Žƒ…‡‘ˆ„—•‹‡••‹–Š‡’”‡•‡…‡‘ˆ–Š‡•ƒ‹†
’‡”•‘ǡ ‘– Žƒ–‡” –Šƒ ͸Ͳ †ƒ›• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ
ƒ’’Ž‹…ƒ–‹‘ǡƒ†–Š‡˜‡”‹ϐ‹…ƒ–‹‘”‡’‘”–ƒŽ‘‰™‹–Š–Š‡
‘–Š‡” †‘…—‡–•ǡ ‹…Ž—†‹‰ ’Š‘–‘‰”ƒ’Š•ǡ •ŠƒŽŽ „‡
•–‹–—–‹‘ ƒ† ”‰ƒ‹•ƒ–‹‘ ‘–‹ϐ‹‡† —†‡” –Š‡ —’Ž‘ƒ†‡† ‹ ‘”
 
Ǧ͵Ͳ ‘ –Š‡ ‘‘
‹–‡† ƒ–‹‘• ȋ”‹˜‹Ž‡‰‡• ƒ† —‹–‹‡•Ȍ …–ǡ
ͳͻͶ͹ǡ‘•—Žƒ–‡‘”„ƒ••›‘ˆˆ‘”‡‹‰…‘—–”‹‡•Ǣ
ƒ†
ȋ„Ȍ ƒ›‘–Š‡”’‡”•‘‘”…Žƒ••‘ˆ’‡”•‘•ǡƒ•ƒ›„‡
‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǡ•ŠƒŽŽ„‡‰”ƒ–‡†ƒ
’‘”–ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆͳͷ™‘”‹‰†ƒ›•ˆ‘ŽŽ‘™‹‰
–Š‡†ƒ–‡‘ˆ•—…Š˜‡”‹ϐ‹…ƒ–‹‘Ǥ
Analysis:- ”‘˜‹•‹‘•‘ˆ•‡…–‹‘ʹͷȋ͸Ȁ͸Ȍ•ŠƒŽŽ‘–
‹“—‡†‡–‹–›—„‡”‹•—…Šƒ‡”ƒ†ˆ‘” „‡ƒ’’Ž‹…ƒ„Ž‡–‘ǣ
•—…Š ’—”’‘•‡•ǡ ‹…Ž—†‹‰ ”‡ˆ—† ‘ˆ –ƒš‡• ‘ –Š‡
‘–‹ϐ‹‡† •—’’Ž‹‡• ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ‘” „‘–Š ƒȌ ’‡”•‘™Š‘‹•‘–ƒ…‹–‹œ‡‘ˆ†‹ƒǤ
”‡…‡‹˜‡†„›–Š‡ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ „Ȍ Žƒ•• ‘ˆ ’‡”•‘• ‘–Š‡” –Šƒ ˆ‘ŽŽ‘™‹‰ …Žƒ•• ‘ˆ
’‡”•‘•
Rejection or Grant of Unique Identity Number
[Section 25 (10)]: Š‡ ”‡‰‹•–”ƒ–‹‘ ‘” –Š‡ ‹“—‡ †‹˜‹†—ƒŽǡ —–Š‘”‹•‡† •‹‰ƒ–‘”› ‘ˆ ƒŽŽ –›’‡•ǡ
†‡–‹–›—„‡”•ŠƒŽŽ„‡‰”ƒ–‡†‘””‡Œ‡…–‡†ƒˆ–‡”†—‡ ƒƒ‰‹‰ƒ†—–Š‘”‹•‡†’ƒ”–‡”•ǡƒ”–ƒ‘ˆ Ǥ
˜‡”‹ϐ‹…ƒ–‹‘‹•—…Šƒ‡”ƒ†™‹–Š‹•—…Š’‡”‹‘†ƒ•
ƒ›„‡’”‡•…”‹„‡†Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 727

Section 25 (11):…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡‹••—‡†‹•—…Šˆ‘”ƒ†™‹–Š‡ˆˆ‡…–ˆ”‘•—…Š†ƒ–‡ƒ•ƒ›„‡
’”‡•…”‹„‡†Ǥ
Section 25 (12): ”‡‰‹•–”ƒ–‹‘‘”ƒ‹“—‡†‡–‹–›—„‡”•ŠƒŽŽ„‡†‡‡‡†–‘Šƒ˜‡„‡‡‰”ƒ–‡†ƒˆ–‡”–Š‡‡š’‹”›
‘ˆ–Š‡’‡”‹‘†’”‡•…”‹„‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳͲȌǡ‹ˆ‘†‡ϐ‹…‹‡…›Šƒ•„‡‡…‘—‹…ƒ–‡†–‘–Š‡ƒ’’Ž‹…ƒ–™‹–Š‹
–Šƒ–’‡”‹‘†Ǥ
Application for registration [Rule 8]
Rule 8(1): ˜‡”›’‡”•‘‘–Š‡”–Šƒǣ

™Š‘ ‹• Ž‹ƒ„Ž‡ –‘ „‡ ”‡‰‹•–‡”‡† —†‡” •‡…–‹‘ ʹͷȋͳȌƒ† ‡˜‡”› ’‡”•‘ •‡‡‹‰ ”‡‰‹•–”ƒ–‹‘ —†‡” •‡…–‹‘ ʹͷȋ͵Ȍ
ȋŠ‡”‡ƒˆ–‡”‹–Š‹•Šƒ’–‡””‡ˆ‡””‡†–‘ƒ•Dz–Š‡ƒ’’Ž‹…ƒ–dzȌ•ŠƒŽŽǡ„‡ˆ‘”‡ƒ’’Ž›‹‰ˆ‘””‡‰‹•–”ƒ–‹‘ǡ†‡…Žƒ”‡Š‹•ǣ

‹ƒ”–‘ˆ ‘”

ǦͲͳ‘–Š‡…‘‘’‘”–ƒŽǡ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡
‘‹••‹‘‡”Ǥ
˜‡”›’‡”•‘„‡‹‰ƒ’—–‡”˜‹…‡‹•–”‹„—–‘”•ŠƒŽŽƒ‡ƒ•‡’ƒ”ƒ–‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘ƒ••—…Š’—–
‡”˜‹…‡‹•–”‹„—–‘”Ǥ
Rule 8(2): –Žƒ›•†‘™–Š‡˜‡”‹ϐ‹…ƒ–‹‘‘ˆ†‡–ƒ‹Ž•‡–‡”‡†ˆ‘””‡‰‹•–”ƒ–‹‘ǣ

‡”ƒ‡–……‘—– —„‡”•ŠƒŽŽ„‡˜ƒŽ‹†ƒ–‡† ‘Ž‹‡„›–Š‡

…‘‘’‘”–ƒŽˆ”‘–Š‡†ƒ–ƒ„ƒ•‡ ƒ‹–ƒ‹‡†„›–Š‡
‡–”ƒŽ‘ƒ”†‘ˆ‹”‡…–ƒš‡•ȋȌ

‘„‹Ž‡—„‡”†‡…Žƒ”‡†•ŠƒŽŽ„‡˜‡”‹ϐ‹‡†–Š”‘—‰Šƒ
‘‡Ǧ–‹‡’ƒ••™‘”†•‡––‘–Š‡•ƒ‹†‘„‹Ž‡—„‡”

Ǧƒ‹Žƒ††”‡••†‡…Žƒ”‡†•ŠƒŽŽ„‡˜‡”‹ϐ‹‡†–Š”‘—‰Šƒ•‡’ƒ”ƒ–‡‘‡Ǧ–‹‡
’ƒ••™‘”†•‡––‘–Š‡•ƒ‹†‡Ǧƒ‹Žƒ††”‡••

Rule 8(3) Žƒ›• †‘™ –Šƒ– ‘ •—……‡••ˆ—Ž ˜‡”‹ϐ‹…ƒ–‹‘ ‘ˆ –Š‡ ‡”ƒ‡– ……‘—– —„‡”ǡ ‘„‹Ž‡ —„‡” ƒ†
‡ƒ‹Žƒ††”‡••ǡƒ–‡’‘”ƒ”›”‡ˆ‡”‡…‡—„‡”•ŠƒŽŽ„‡‰‡‡”ƒ–‡†ƒ†…‘—‹…ƒ–‡†–‘–Š‡ƒ’’Ž‹…ƒ–‘–Š‡ •ƒ‹†
‘„‹Ž‡—„‡”ƒ†‡Ǧƒ‹Žƒ††”‡••Ǥ
 728 Lesson 15 Ȉ EP-TL

Ȉ •‹‰–Š‡”‡ˆ‡”‡…‡—„‡”‰‡‡”ƒ–‡†ǡ–Š‡ƒ’’Ž‹…ƒ– •ŠƒŽŽ ‡Ž‡…–”‘‹…ƒŽŽ›

Rule •—„‹– ƒ ƒ’’Ž‹…ƒ–‹‘ ‹ ƒ”–  ‘ˆ 

ǦͲͳǡ†—Ž›•‹‰‡†
‘” ˜‡”‹ϐ‹‡† –Š”‘—‰Š ‡Ž‡…–”‘‹… ˜‡”‹ϐ‹…ƒ–‹‘ …‘†‡ǡ ƒŽ‘‰ ™‹–Š –Š‡
8 (4) †‘…—‡–• •’‡…‹ϐ‹‡† ‹ –Š‡ •ƒ‹† ‘” ƒ– –Š‡ …‘‘ ’‘”–ƒŽǡ ‡‹–Š‡”
†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡ ‘‹••‹‘‡”Ǥ

Rule Ȉ  ”‡…‡‹’– ‘ˆ ƒ ƒ’’Ž‹…ƒ–‹‘ǡ ƒ ƒ…‘™Ž‡†‰‡‡– •ŠƒŽŽ „‡ ‹••—‡†
‡Ž‡…–”‘‹…ƒŽŽ›–‘–Š‡ƒ’’Ž‹…ƒ–‹ 

ǦͲʹǤ
8 (5)

Ȉ ’‡”•‘ƒ’’Ž›‹‰ˆ‘””‡‰‹•–”ƒ–‹‘ƒ•ƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘•ŠƒŽŽ„‡
‰‹˜‡ ƒ –‡’‘”ƒ”› ”‡ˆ‡”‡…‡ —„‡” „› –Š‡ …‘‘ ’‘”–ƒŽ ˆ‘”
Rule ƒ‹‰ƒ†˜ƒ…‡†‡’‘•‹–‘ˆ–ƒš‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ
8 (6) •‡…–‹‘ ʹ͹ ƒ† –Š‡ ƒ…‘™Ž‡†‰‡‡– —†‡” •—„Ǧ”—Ž‡ ȋͷȌ •ŠƒŽŽ „‡
‹••—‡†‡Ž‡…–”‘‹…ƒŽŽ›‘Ž›ƒˆ–‡”–Š‡•ƒ‹††‡’‘•‹–Ǥ

Rule 8(4A) –Š‡ƒ’’Ž‹…ƒ–•ŠƒŽŽǡ™Š‹Ž‡•—„‹––‹‰ƒƒ’’Ž‹…ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͶȌǡ™‹–Š‡ˆˆ‡…–ˆ”‘ͲͳǤͲͶǤʹͲʹͲǡ

—†‡”‰‘ ƒ—–Š‡–‹…ƒ–‹‘ ‘ˆ ƒ†Šƒƒ” —„‡” ˆ‘” ‰”ƒ– ‘ˆ ”‡‰‹•–”ƒ–‹‘Ǥ ȋ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ ͳ͸ȀʹͲʹͲǦ †ƒ–‡†
ʹ͵ǤͲ͵ǤʹͲʹͲȌ
‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘ƒ†ƒ’’”‘˜ƒŽȏ—Ž‡ͻȐ
ȋͳȌ Š‡ ƒ’’Ž‹…ƒ–‹‘ •ŠƒŽŽ „‡ ˆ‘”™ƒ”†‡† –‘ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ™Š‘ •ŠƒŽŽ ‡šƒ‹‡ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ƒ† –Š‡
ƒ……‘’ƒ›‹‰†‘…—‡–•ƒ†‹ˆ–Š‡•ƒ‡ƒ”‡ˆ‘—†–‘„‡‹‘”†‡”ǡƒ’’”‘˜‡–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘ –Š‡
ƒ’’Ž‹…ƒ–™‹–Š‹–Š”‡‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆƒ’’Ž‹…ƒ–‹‘Ǥ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ’‡”•‘ǡ‘–Š‡”–Šƒ–Š‘•‡‘–‹ϐ‹‡† —†‡”•—„Ǧ•‡…–‹‘ȋ͸Ȍ‘ˆ•‡…–‹‘ʹͷǡˆƒ‹Ž•–‘—†‡”‰‘
ƒ—–Š‡–‹…ƒ–‹‘‘ˆƒ†Šƒƒ”—„‡”ƒ••’‡…‹ϐ‹‡† ‹•—„Ǧ”—Ž‡ȋͶȌ‘ˆ”—Ž‡ͺǡ–Š‡–Š‡”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡‰”ƒ–‡† ‘Ž›
ƒˆ–‡”’Š›•‹…ƒŽ˜‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡’”‹…‹’Ž‡’Žƒ…‡‘ˆ„—•‹‡••‹–Š‡’”‡•‡…‡‘ˆ–Š‡•ƒ‹†’‡”•‘ǡ‘–Žƒ–‡” –Šƒ•‹š–›
†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆƒ’’Ž‹…ƒ–‹‘ǡ‹–Š‡ƒ‡”’”‘˜‹†‡†—†‡””—Ž‡ʹͷƒ†–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ ”—Ž‡ȋͷȌ•ŠƒŽŽ‘–
„‡ƒ’’Ž‹…ƒ„Ž‡‹•—…Š…ƒ•‡•Ǥȋ‘–‹ϐ‹…ƒ–‹‘‘Ǥͳ͸ȀʹͲʹͲǦ†ƒ–‡†ʹ͵ǤͲ͵ǤʹͲʹͲȌǤ
ȋʹȌ Š‡”‡–Š‡ƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡””—Ž‡ͺ‹•ˆ‘—†–‘„‡†‡ϐ‹…‹‡–ǡ‡‹–Š‡”‹–‡”•‘ˆƒ›‹ˆ‘”ƒ–‹‘‘”
ƒ› †‘…—‡– ”‡“—‹”‡† –‘ „‡ ˆ—”‹•Š‡† —†‡” –Š‡ •ƒ‹† ”—Ž‡ǡ ‘” ™Š‡”‡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ”‡“—‹”‡• ƒ›
…Žƒ”‹ϐ‹…ƒ–‹‘™‹–Š”‡‰ƒ”†–‘ƒ›‹ˆ‘”ƒ–‹‘’”‘˜‹†‡†‹–Š‡ƒ’’Ž‹…ƒ–‹‘‘”†‘…—‡–•ˆ—”‹•Š‡†–Š‡”‡™‹–ŠǡŠ‡
ƒ›‹••—‡ƒ‘–‹…‡–‘–Š‡ƒ’’Ž‹…ƒ–‡Ž‡…–”‘‹…ƒŽŽ›‹ 

ǦͲ͵™‹–Š‹–Š”‡‡™‘”‹‰†ƒ›• ˆ”‘–Š‡
†ƒ–‡ ‘ˆ •—„‹••‹‘‘ˆƒ’’Ž‹…ƒ–‹‘ƒ†–Š‡ƒ’’Ž‹…ƒ–•ŠƒŽŽˆ—”‹•Š•—…Š…Žƒ”‹ϐ‹…ƒ–‹‘ǡ‹ˆ‘”ƒ–‹‘‘”†‘…—‡–•
•‘—‰Š–‡Ž‡…–”‘‹…ƒŽŽ›ǡ‹ 

ǦͲͶǡ™‹–Š‹•‡˜‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ•—…Š‹–‹ƒ–‹‘Ǥ
ExplanationǤ Ȃ ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• •—„Ǧ”—Ž‡ǡ –Š‡ ‡š’”‡••‹‘ Ȇdz…Žƒ”‹ϐ‹…ƒ–‹‘dz ‹…Ž—†‡• ‘†‹ϐ‹…ƒ–‹‘ ‘”
…‘””‡…–‹‘‘ˆ’ƒ”–‹…—Žƒ”•†‡…Žƒ”‡†‹–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘ǡ‘–Š‡”–Šƒ‡”ƒ‡–……‘—–—„‡”ǡ
–ƒ–‡ǡ‘„‹Ž‡—„‡”ƒ†‡Ǧƒ‹Žƒ††”‡••†‡…Žƒ”‡†‹ƒ”–‘ˆ 

ǦͲͳǤ
ȋ͵Ȍ Š‡”‡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ‹• •ƒ–‹•ϐ‹‡† ™‹–Š –Š‡ …Žƒ”‹ϐ‹…ƒ–‹‘ǡ ‹ˆ‘”ƒ–‹‘ ‘” †‘…—‡–• ˆ—”‹•Š‡† „› –Š‡
ƒ’’Ž‹…ƒ–ǡŠ‡ƒ›ƒ’’”‘˜‡–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘–Š‡ƒ’’Ž‹…ƒ–™‹–Š‹•‡˜‡™‘”‹‰†ƒ›•ˆ”‘–Š‡ †ƒ–‡
‘ˆ”‡…‡‹’–‘ˆ•—…Š…Žƒ”‹ϐ‹…ƒ–‹‘‘”‹ˆ‘”ƒ–‹‘‘”†‘…—‡–•Ǥ
ȋͶȌ Š‡”‡‘”‡’Ž›‹•ˆ—”‹•Š‡†„›–Š‡ƒ’’Ž‹…ƒ–‹”‡•’‘•‡–‘–Š‡‘–‹…‡‹••—‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌ™‹–Š‹ –Š‡
’”‡•…”‹„‡† ’‡”‹‘† ‘” ™Š‡”‡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ‹• ‘– •ƒ–‹•ϐ‹‡† ™‹–Š –Š‡ …Žƒ”‹ϐ‹…ƒ–‹‘ǡ ‹ˆ‘”ƒ–‹‘ ‘”
†‘…—‡–•ˆ—”‹•Š‡†ǡŠ‡•ŠƒŽŽǡˆ‘””‡ƒ•‘•–‘„‡”‡…‘”†‡†‹™”‹–‹‰ǡ”‡Œ‡…–•—…Šƒ’’Ž‹…ƒ–‹‘ƒ†‹ˆ‘” –Š‡
ƒ’’Ž‹…ƒ–‡Ž‡…–”‘‹…ƒŽŽ›‹ 

ǦͲͷǤ
ȋͷȌ ˆ–Š‡’”‘’‡”‘ˆϐ‹…‡”ˆƒ‹Ž•–‘–ƒ‡ƒ›ƒ…–‹‘ǦȋƒȌ™‹–Š‹–Š”‡‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆ
ƒ’’Ž‹…ƒ–‹‘ǡ ‘” ȋ„Ȍ ™‹–Š‹ •‡˜‡ ™‘”‹‰ †ƒ›• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ”‡…‡‹’– ‘ˆ …Žƒ”‹ϐ‹…ƒ–‹‘ǡ ‹ˆ‘”ƒ–‹‘ ‘”
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 729

†‘…—‡–•ˆ—”‹•Š‡†„›–Š‡ƒ’’Ž‹…ƒ–—†‡”•—„Ǧ”—Ž‡ȋʹȌǡ–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ „‡
†‡‡‡†–‘Šƒ˜‡„‡‡ƒ’’”‘˜‡†Ǥ
—Ž‡ͻ…ƒ–Š—•„‡•—ƒ”‹•‡†ƒ•—†‡”ǣ

Š‡ ƒ’’Ž‹…ƒ–‹‘ •ŠƒŽŽ „‡ ˆ‘”™ƒ”†‡† ˆ‘” ‡šƒ‹ƒ–‹‘ ƒŽ‘‰™‹–Š –Š‡ ƒ……‘’ƒ›‹‰
†‘…—‡–•ƒ†‹ˆ–Š‡•ƒ‡ƒ”‡ˆ‘—†–‘„‡‹‘”†‡”ǡ’”‘’‡”‘ˆϐ‹…‹ƒŽ•ŠƒŽŽƒ’’”‘˜‡–Š‡
‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘–‘–Š‡ƒ’’Ž‹…ƒ–™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š”‡‡™‘”‹‰†ƒ›•ˆ”‘–Š‡
†ƒ–‡‘ˆ•—„‹••‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘

Š‡”‡–Š‡ƒ’’Ž‹…ƒ–‹‘‹•ˆ‘—†–‘ „‡†‡ϐ‹…‹‡– ‘”ƒ›…Žƒ”‹ϐ‹…ƒ–‹‘• ƒ”‡ •‘—‰Š–ǡ

‹••—‡ ƒ ‘–‹…‡ –‘ –Š‡ ƒ’’Ž‹…ƒ– ‡Ž‡…–”‘‹…ƒŽŽ› ‹ 
 
ǦͲ͵ ™‹–Š‹ ƒ
’‡”‹‘†‘ˆ–Š”‡‡™‘”‹‰†ƒ›•ˆ”‘ –Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘

A’’Ž‹…ƒ–•ŠƒŽŽˆ—”‹•Š•—…Š…Žƒ”‹ϐ‹…ƒ–‹‘‘”†‘…—‡–•‡Ž‡…–”‘‹…ƒŽŽ›ǡ‹ 
GST REG-04ǡ™‹–Š‹ƒ’‡”‹‘†‘ˆ•‡˜‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡”‡…‡‹’–
‘ˆ•—…Š‘–‹…‡

Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†™‹–Š–Š‡…Žƒ”‹ϐ‹…ƒ–‹‘ǡŠ‡ƒ› ƒ’’”‘˜‡‰”ƒ–
‘ˆ ”‡‰‹•–”ƒ–‹‘ –‘ –Š‡ ƒ’’Ž‹…ƒ– ™‹–Š‹ ƒ ’‡”‹‘† ‘ˆ •‡˜‡ ™‘”‹‰ †ƒ›• ˆ”‘
–Š‡ †ƒ–‡ ‘ˆ –Š‡ ”‡…‡‹’– ‘ˆ •—…Š …Žƒ”‹ϐ‹…ƒ–‹‘‘”‹ˆ‘”ƒ–‹‘‘”†‘…—‡–•

Š‡”‡ ‘ ”‡’Ž› ‹• ˆ—”‹•Š‡† „› –Š‡ ƒ’’Ž‹…ƒ– ‹ ”‡•’‘•‡ –‘ –Š‡ ‘–‹…‡
‹••—‡† ’”‘’‡” ‘ˆϐ‹…‹ƒŽ •ŠƒŽŽ ”‡Œ‡…– •—…Š ƒ’’Ž‹…ƒ–‹‘ ƒ† ‹ˆ‘”–Š‡ƒ’’Ž‹…ƒ–
‡Ž‡…–”‘‹…ƒŽŽ›‹ 

ǦͲͷ

••—‡‘ˆ‡‰‹•–”ƒ–‹‘‡”–‹ϐ‹…ƒ–‡ȏ—Ž‡ͳͲȐ
ȋͳȌ —„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋͳʹȌ‘ˆ•‡…–‹‘ʹͷǡ™Š‡”‡–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘Šƒ•
„‡‡ƒ’’”‘˜‡†—†‡””—Ž‡ͻǡƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‹ 

ǦͲ͸•Š‘™‹‰–Š‡’”‹…‹’ƒŽ’Žƒ…‡‘ˆ
„—•‹‡••ƒ†ƒ††‹–‹‘ƒŽ’Žƒ…‡ȋ•Ȍ‘ˆ„—•‹‡•••ŠƒŽŽ„‡ƒ†‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡ƒ’’Ž‹…ƒ–‘–Š‡‘‘‘”–ƒŽ
ƒ†ƒ
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”ȋŠ‡”‡‹ƒˆ–‡”‹–Š‡•‡”—Ž‡•”‡ˆ‡””‡†–‘ƒ•Dz
dzȌ•ŠƒŽŽ
„‡ƒ••‹‰‡†‹–Š‡ˆ‘ŽŽ‘™‹‰ˆ‘”ƒ–ǣ

™‘…Šƒ”ƒ…–‡”•ˆ‘”–Š‡–ƒ–‡…‘†‡

‡…Šƒ”ƒ…–‡”•ˆ‘”–Š‡‡”ƒ‡–……‘—–
—„‡”‘”–Š‡ƒš‡†—…–‹‘ƒ†‘ŽŽ‡…–‹‘
……‘—–—„‡”

™‘…Šƒ”ƒ…–‡”•ˆ‘”–Š‡‡–‹–›…‘†‡

‡…Š‡…•—…Šƒ”ƒ…–‡”

ȋʹȌ Š‡”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡’‡”•‘„‡…‘‡•Ž‹ƒ„Ž‡–‘”‡‰‹•–”ƒ–‹‘™Š‡”‡
–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘Šƒ•„‡‡•—„‹––‡†™‹–Š‹–Š‹”–›†ƒ›•ˆ”‘•—…Š†ƒ–‡Ǥ
ȋ͵Ȍ Š‡”‡ƒƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘Šƒ•„‡‡•—„‹––‡†„›–Š‡ƒ’’Ž‹…ƒ–ƒˆ–‡”–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ
Š‹•„‡…‘‹‰Ž‹ƒ„Ž‡–‘”‡‰‹•–”ƒ–‹‘ǡ–Š‡‡ˆˆ‡…–‹˜‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡–Š‡†ƒ–‡‘ˆ‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘
—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘”•—„Ǧ”—Ž‡ȋ͵Ȍ‘”•—„Ǧ”—Ž‡ȋͷȌ‘ˆ”—Ž‡ͻǤ
 730 Lesson 15 Ȉ EP-TL

ȋͶȌ ˜‡”›…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡†—Ž›•‹‰‡†‘”˜‡”‹ϐ‹‡†–Š”‘—‰Š‡Ž‡…–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘…‘†‡„›–Š‡
’”‘’‡”‘ˆϐ‹…‡”—†‡”–Š‡…–Ǥ
ȋͷȌ Š‡”‡–Š‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‰”ƒ–‡†—†‡”•—„Ǧ”—Ž‡ȋͷȌ‘ˆ”—Ž‡ͻǡ–Š‡ƒ’’Ž‹…ƒ–•ŠƒŽŽ„‡…‘—‹…ƒ–‡†
–Š‡”‡‰‹•–”ƒ–‹‘—„‡”ƒ†–Š‡…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌǡ†—Ž›•‹‰‡†‘”˜‡”‹ϐ‹‡†–Š”‘—‰Š
‡Ž‡…–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘…‘†‡ǡ•ŠƒŽŽ„‡ƒ†‡ƒ˜ƒ‹Žƒ„Ž‡–‘Š‹‘–Š‡…‘‘’‘”–ƒŽ™‹–Š‹–Š”‡‡†ƒ›•ƒˆ–‡”
‡š’‹”›‘ˆ–Š‡’‡”‹‘†•’‡…‹ϐ‹‡†‹•—„Ǧ”—Ž‡ȋͷȌ‘ˆ”—Ž‡ͻǤ
Separate registration for multiple places of business within a State or a Union territory [Rule 11]
ȋͳȌ › ’‡”•‘ Šƒ˜‹‰ —Ž–‹’Ž‡ ’Žƒ…‡• ‘ˆ „—•‹‡•• ™‹–Š‹ ƒ –ƒ–‡ ‘” ƒ ‹‘ –‡””‹–‘”›ǡ ”‡“—‹”‹‰ ƒ •‡’ƒ”ƒ–‡
”‡‰‹•–”ƒ–‹‘ ˆ‘” ƒ› •—…Š ’Žƒ…‡ ‘ˆ „—•‹‡•• —†‡” •—„Ǧ•‡…–‹‘ ȋʹȌ ‘ˆ •‡…–‹‘ ʹͷ •ŠƒŽŽ „‡ ‰”ƒ–‡† •‡’ƒ”ƒ–‡
”‡‰‹•–”ƒ–‹‘‹”‡•’‡…–‘ˆ‡ƒ…Š•—…Š’Žƒ…‡‘ˆ„—•‹‡•••—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǡƒ‡Ž›ǣǦ
ƒǤ •—…Š’‡”•‘Šƒ•‘”‡–Šƒ‘‡’Žƒ…‡‘ˆ„—•‹‡••ƒ•†‡ϐ‹‡†‹…Žƒ—•‡ȋͺͷȌ‘ˆ•‡…–‹‘ʹǢ
„Ǥ •—…Š’‡”•‘•ŠƒŽŽ‘–’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲˆ‘”ƒ›‘ˆŠ‹•’Žƒ…‡•‘ˆ„—•‹‡••‹ˆŠ‡‹•’ƒ›‹‰–ƒš—†‡”
•‡…–‹‘ͻˆ‘”ƒ›‘–Š‡”’Žƒ…‡‘ˆ„—•‹‡••Ǣ
…Ǥ ƒŽŽ•‡’ƒ”ƒ–‡Ž›”‡‰‹•–‡”‡†’Žƒ…‡•‘ˆ„—•‹‡••‘ˆ•—…Š’‡”•‘•ŠƒŽŽ’ƒ›–ƒš—†‡”–Š‡…–‘•—’’Ž›‘ˆ
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†‡–‘ƒ‘–Š‡””‡‰‹•–‡”‡†’Žƒ…‡‘ˆ„—•‹‡••‘ˆ•—…Š’‡”•‘ƒ†‹••—‡ƒ–ƒš
‹˜‘‹…‡‘”ƒ„‹ŽŽ‘ˆ•—’’Ž›ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡˆ‘”•—…Š•—’’Ž›Ǥ
ExplanationǤǦ ‘”–Š‡’—”’‘•‡•‘ˆ…Žƒ—•‡ȋ„Ȍǡ‹–‹•Š‡”‡„›…Žƒ”‹ϐ‹‡†–Šƒ–™Š‡”‡ƒ›’Žƒ…‡‘ˆ„—•‹‡••‘ˆƒ”‡‰‹•–‡”‡†
’‡”•‘–Šƒ–Šƒ•„‡‡‰”ƒ–‡†ƒ•‡’ƒ”ƒ–‡”‡‰‹•–”ƒ–‹‘„‡…‘‡•‹‡Ž‹‰‹„Ž‡–‘’ƒ›–ƒš—†‡”•‡…–‹‘ͳͲǡƒŽŽ‘–Š‡”
”‡‰‹•–‡”‡†’Žƒ…‡•‘ˆ„—•‹‡••‘ˆ–Š‡•ƒ‹†’‡”•‘•ŠƒŽŽ„‡…‘‡‹‡Ž‹‰‹„Ž‡–‘’ƒ›–ƒš—†‡”–Š‡•ƒ‹†•‡…–‹‘Ǥ
ȋʹȌ  ”‡‰‹•–‡”‡† ’‡”•‘ ‘’–‹‰ –‘ ‘„–ƒ‹ •‡’ƒ”ƒ–‡ ”‡‰‹•–”ƒ–‹‘ ˆ‘” ƒ ’Žƒ…‡ ‘ˆ „—•‹‡•• •ŠƒŽŽ •—„‹– ƒ •‡’ƒ”ƒ–‡
ƒ’’Ž‹…ƒ–‹‘‹ 

ǦͲͳ‹”‡•’‡…–‘ˆ•—…Š’Žƒ…‡‘ˆ„—•‹‡••Ǥ
ȋ͵Ȍ Š‡’”‘˜‹•‹‘•‘ˆ”—Ž‡ͻƒ†”—Ž‡ͳͲ”‡Žƒ–‹‰–‘–Š‡˜‡”‹ϐ‹…ƒ–‹‘ƒ†–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽǡmutatis
mutandisǡƒ’’Ž›–‘ƒƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡”–Š‹•”—Ž‡Ǥ
Grant of Registration to persons required to Deduct Tax at Source or to Collect Tax at Source [Rule 12]
Š‡’”‘…‡†—”‡‹•ƒ•—†‡”ǣ

›’‡”•‘”‡“—‹”‡†–‘†‡†—…––ƒš—†‡”•‡…–‹‘ͷͳ‘”ƒ ’‡”•‘”‡“—‹”‡†–‘…‘ŽŽ‡…––ƒšƒ–•‘—”…‡
—†‡”•‡…–‹‘ͷʹ •ŠƒŽŽ ‡Ž‡…–”‘‹…ƒŽŽ› •—„‹– ƒ ƒ’’Ž‹…ƒ–‹‘ǡ †—Ž› •‹‰‡† ‘” ˜‡”‹ϐ‹‡†ǡ ‹ 
GST REG-07 ˆ‘” –Š‡ ‰”ƒ– ‘ˆ ”‡‰‹•–”ƒ–‹‘–Š”‘—‰Š–Š‡…‘‘’‘”–ƒŽȏ—Ž‡ͳʹȋͳȌȐ

’‡”•‘ƒ’’Ž›‹‰ˆ‘””‡‰‹•–”ƒ–‹‘–‘…‘ŽŽ‡…––ƒš‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷʹǡ‹ƒ
–ƒ–‡‘”‹‘–‡””‹–‘”›™Š‡”‡Š‡†‘‡•‘–Šƒ˜‡ƒ’Š›•‹…ƒŽ’”‡•‡…‡ǡ•ŠƒŽŽ‡–‹‘–Š‡ƒ‡‘ˆ–Š‡
–ƒ–‡‘”‹‘–‡””‹–‘”›‹‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹ 

ǦͲ͹ƒ†‡–‹‘–Š‡ƒ‡
‘ˆ–Š‡–ƒ–‡‘”‹‘–‡””‹–‘”›‹–Š‡”‡‘ˆ‹™Š‹…Š–Š‡’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••‹•Ž‘…ƒ–‡†
™Š‹…Šƒ›„‡†‹ˆˆ‡”‡–ˆ”‘–Š‡–ƒ–‡‘”‹‘–‡””‹–‘”›‡–‹‘‡†‹Ǥȏ—Ž‡ͳʹȋͳȌȐ

Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›‰”ƒ–”‡‰‹•–”ƒ–‹‘ƒˆ–‡”†—‡ ˜‡”‹ϐ‹…ƒ–‹‘ƒ†‹••—‡ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ
”‡‰‹•–”ƒ–‹‘‹ 

ǦͲ͸™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š”‡‡™‘”‹‰†ƒ›•ˆ”‘ –Š‡†ƒ–‡‘ˆ
•—„‹••‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘Ǥȏ—Ž‡ͳʹȋʹȌȐ

Š‡”‡ǡ —’‘ ƒ ‡“—‹”› ‘” ’—”•—ƒ– –‘ ƒ› ‘–Š‡” ’”‘…‡‡†‹‰ —†‡” –Š‡ …–ǡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ‹•
•ƒ–‹•ϐ‹‡† –Šƒ–ƒ’‡”•‘–‘™Š‘ƒ…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‹ 

ǦͲ͸Šƒ•„‡‡‹••—‡†‹•‘
Ž‘‰‡”Ž‹ƒ„Ž‡–‘ †‡†—…– –ƒš ƒ– •‘—”…‡ —†‡” •‡…–‹‘ ͷͳ ‘” …‘ŽŽ‡…– –ƒš ƒ– •‘—”…‡ —†‡” •‡…–‹‘ ͷʹǡ –Š‡
•ƒ‹† ‘ˆϐ‹…‡” ƒ› …ƒ…‡Ž –Š‡ ”‡‰‹•–”ƒ–‹‘ ‹••—‡† —†‡” •—„Ǧ”—Ž‡ ȋʹȌ ƒ† •—…Š …ƒ…‡ŽŽƒ–‹‘ •ŠƒŽŽ „‡
…‘—‹…ƒ–‡† –‘ –Š‡ •ƒ‹† ’‡”•‘ ‡Ž‡…–”‘‹…ƒŽŽ›‹ 

ǦͲͺǤ
”‘˜‹†‡† –Šƒ– –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” •ŠƒŽŽ ˆ‘ŽŽ‘™ –Š‡ ’”‘…‡†—”‡’”‡•…”‹„‡† ‹ ”—Ž‡ ʹʹ ˆ‘” …ƒ…‡ŽŽƒ–‹‘ ‘ˆ
”‡‰‹•–”ƒ–‹‘Ǥȏ—Ž‡ ͳʹȋ͵ȌȐ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 731

Grant of registration to non-resident taxable person [Rule 13]

ȋͳȌ ‘Ǧ”‡•‹†‡– –ƒšƒ„Ž‡ ’‡”•‘ •ŠƒŽŽ ‡Ž‡…–”‘‹…ƒŽŽ› •—„‹– ƒ ƒ’’Ž‹…ƒ–‹‘ǡ ƒŽ‘‰ ™‹–Š ƒ ˜ƒŽ‹† ’ƒ••’‘”–ǡ ˆ‘”
”‡‰‹•–”ƒ–‹‘ǡ †—Ž›•‹‰‡†ǡ‹ 

ǦͲͻǡƒ–Ž‡ƒ•–ϐ‹˜‡†ƒ›•’”‹‘”–‘–Š‡…‘‡…‡‡–‘ˆ„—•‹‡••ƒ–
–Š‡‘‘‘”–ƒŽ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”Ǥ
 ”‘˜‹†‡†–Šƒ–‹–Š‡…ƒ•‡‘ˆƒ„—•‹‡••‡–‹–›‹…‘”’‘”ƒ–‡†‘”‡•–ƒ„Ž‹•Š‡†‘—–•‹†‡†‹ƒǡ–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”
”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡•—„‹––‡†ƒŽ‘‰™‹–Š‹–•–ƒš‹†‡–‹ϐ‹…ƒ–‹‘—„‡”‘”—‹“—‡—„‡”‘–Š‡„ƒ•‹•‘ˆ
™Š‹…Š–Š‡‡–‹–›‹•‹†‡–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘ˆ–Šƒ–…‘—–”›‘”‹–•‡”ƒ‡–……‘—–—„‡”ǡ‹ˆƒ˜ƒ‹Žƒ„Ž‡Ǥ
ȋʹȌ  ’‡”•‘ ƒ’’Ž›‹‰ ˆ‘” ”‡‰‹•–”ƒ–‹‘ ƒ• ƒ ‘Ǧ”‡•‹†‡– –ƒšƒ„Ž‡ ’‡”•‘ •ŠƒŽŽ „‡ ‰‹˜‡ ƒ –‡’‘”ƒ”› ”‡ˆ‡”‡…‡
—„‡”„›–Š‡…‘‘’‘”–ƒŽˆ‘”ƒ‹‰ƒƒ†˜ƒ…‡†‡’‘•‹–‘ˆ–ƒš‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ
•‡…–‹‘ʹ͹ƒ†–Š‡ƒ…‘™Ž‡†‰‡‡–—†‡”•—„Ǧ”—Ž‡ȋͷȌ‘ˆ”—Ž‡ͺ•ŠƒŽŽ„‡‹••—‡†‡Ž‡…–”‘‹…ƒŽŽ›‘Ž›ƒˆ–‡”–Š‡
•ƒ‹††‡’‘•‹–‹Š‹•‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”Ǥ
ȋ͵Ȍ Š‡’”‘˜‹•‹‘•‘ˆ”—Ž‡ͻƒ†”—Ž‡ͳͲ”‡Žƒ–‹‰–‘–Š‡˜‡”‹ϐ‹…ƒ–‹‘ƒ†–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽǡmutatis
mutandis,ƒ’’Ž›–‘ƒƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡”–Š‹•”—Ž‡Ǥ
ȋͶȌ Š‡ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ”‡‰‹•–”ƒ–‹‘ ƒ†‡ „› ƒ ‘Ǧ”‡•‹†‡– –ƒšƒ„Ž‡ ’‡”•‘ •ŠƒŽŽ „‡ †—Ž› •‹‰‡† ‘” ˜‡”‹ϐ‹‡†
–Š”‘—‰Š ‡Ž‡…–”‘‹… ˜‡”‹ϐ‹…ƒ–‹‘ …‘†‡ „› Š‹• ƒ—–Š‘”‹•‡† •‹‰ƒ–‘”› ™Š‘ •ŠƒŽŽ „‡ ƒ ’‡”•‘ ”‡•‹†‡– ‹ †‹ƒ
Šƒ˜‹‰ƒ˜ƒŽ‹†‡”ƒ‡–……‘—–—„‡”Ǥ

RULE 14-Grant of registration to a RULE 15-Extension in period

person supplying online information of operation by casual taxable
and database access or retrieval person and non-resident tax-
services from a place outside India to able person
a non-taxable online recipient

›’‡”•‘•—’’Ž›‹‰‘Ž‹‡ Š‡”‡ƒ”‡‰‹•–‡”‡†…ƒ•—ƒŽ
‹ˆ‘”ƒ–‹‘ƒ††ƒ–ƒ„ƒ•‡ƒ……‡••‘” –ƒšƒ„Ž‡ ’‡”•‘‘”ƒ‘Ǧ”‡•‹-
”‡–”‹‡˜ƒŽ•‡”˜‹…‡•ˆ”‘ƒ’Žƒ…‡‘—–- †‡––ƒšƒ„Ž‡ ’‡”•‘‹–‡†•–‘
•‹†‡†‹ƒ–‘ƒ‘Ǧ–ƒšƒ„Ž‡‘Ž‹‡ ‡š–‡†–Š‡ ’‡”‹‘†‘ˆ”‡‰‹•–”ƒ-
”‡…‹’‹‡–•ŠƒŽŽ‡Ž‡…–”‘‹…ƒŽŽ›•—„‹– –‹‘‹†‹…ƒ–‡†‹ Š‹•ƒ’’Ž‹…ƒ–‹‘
ƒƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘ǡ†—Ž› ‘ˆ”‡‰‹•–”ƒ–‹‘ǡƒ ƒ’’Ž‹…ƒ–‹‘
•‹‰‡†‘”˜‡”‹ϐ‹‡†–Š”‘—‰Š‡Ž‡…- ‹ 

Ǧͳͳ •ŠƒŽŽ
–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘…‘†‡ǡ‹  „‡•—„‹––‡†‡Ž‡…–”‘‹…ƒŽŽ›


ǦͳͲ –Š”‘—‰Š–Š‡…‘‘’‘”–ƒŽ
„› •—…Š’‡”•‘„‡ˆ‘”‡–Š‡‡†
‘ˆ–Š‡ ˜ƒŽ‹†‹–›‘ˆ”‡‰‹•–”ƒ–‹‘
‰”ƒ–‡†–‘ Š‹Ǥ
Š‡ƒ’’Ž‹…ƒ–•ŠƒŽŽ„‡‰”ƒ–‡†
”‡‰‹•–”ƒ–‹‘ǡ‹ 

Ǧ
Ͳ͸ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ† Š‡ƒ’’Ž‹…ƒ–‹‘—†‡”•—„Ǧ
”‡•–”‹…–‹‘•ƒ†„›•—…Š‘ˆϐ‹…‡”ƒ• ”—Ž‡ȋͳȌ•ŠƒŽŽ„‡ƒ…‘™Ž‡†‰‡†
ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜- ‘Ž›‘’ƒ›‡–‘ˆ–Š‡ƒ‘—–
‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘• •’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ
‘ˆ–Š‡‘—…‹Ž •‡…–‹‘ʹ͹

Suo moto Registration [Rule 16]

ȋͳȌ Š‡”‡ǡ ’—”•—ƒ– –‘ ƒ› •—”˜‡›ǡ ‡“—‹”›ǡ ‹•’‡…–‹‘ǡ •‡ƒ”…Š ‘” ƒ› ‘–Š‡” ’”‘…‡‡†‹‰• —†‡” –Š‡ …–ǡ –Š‡
’”‘’‡”‘ˆϐ‹…‡”ϐ‹†•–Šƒ–ƒ’‡”•‘Ž‹ƒ„Ž‡–‘”‡‰‹•–”ƒ–‹‘—†‡”–Š‡…–Šƒ•ˆƒ‹Ž‡†–‘ƒ’’Ž›ˆ‘”•—…Š”‡‰‹•–”ƒ–‹‘ǡ
•—…Š ‘ˆϐ‹…‡” ƒ› ”‡‰‹•–‡” –Š‡ •ƒ‹† ’‡”•‘ ‘ ƒ –‡’‘”ƒ”› „ƒ•‹• ƒ† ‹••—‡ ƒ ‘”†‡” ‹ 

ǦͳʹǤ
 732 Lesson 15 Ȉ EP-TL

ȋʹȌ Š‡”‡‰‹•–”ƒ–‹‘‰”ƒ–‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌ•ŠƒŽŽ„‡‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡†ƒ–‡‘ˆ‘”†‡”‰”ƒ–‹‰”‡‰‹•–”ƒ–‹‘Ǥ
ȋ͵Ȍ ˜‡”›’‡”•‘–‘™Š‘ƒ–‡’‘”ƒ”›”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‰”ƒ–‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌ•ŠƒŽŽǡ™‹–Š‹‹‡–› †ƒ›•
ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡‰”ƒ–‘ˆ•—…Š”‡‰‹•–”ƒ–‹‘ǡ•—„‹–ƒƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‹–Š‡ˆ‘”ƒ†ƒ‡”
’”‘˜‹†‡† ‹ ”—Ž‡ ͺ ‘” ”—Ž‡ ͳʹ —Ž‡•• –Š‡ •ƒ‹† ’‡”•‘ Šƒ• ϐ‹Ž‡† ƒ ƒ’’‡ƒŽ ƒ‰ƒ‹•– –Š‡ ‰”ƒ– ‘ˆ –‡’‘”ƒ”›
”‡‰‹•–”ƒ–‹‘ǡ ‹ ™Š‹…Š …ƒ•‡ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ”‡‰‹•–”ƒ–‹‘ •ŠƒŽŽ „‡ •—„‹––‡† ™‹–Š‹ –Š‹”–› †ƒ›•ˆ”‘–Š‡
†ƒ–‡‘ˆ‹••—ƒ…‡‘ˆ‘”†‡”—’Š‘Ž†‹‰–Š‡Ž‹ƒ„‹Ž‹–›–‘”‡‰‹•–”ƒ–‹‘„›–Š‡’’‡ŽŽƒ–‡—–Š‘”‹–›Ǥ
ȋͶȌ Š‡ ’”‘˜‹•‹‘• ‘ˆ ”—Ž‡ ͻ ƒ† ”—Ž‡ ͳͲ ”‡Žƒ–‹‰ –‘ ˜‡”‹ϐ‹…ƒ–‹‘ ƒ† ‹••—‡ ‘ˆ …‡”–‹ϐ‹…ƒ–‡ ‘ˆ ”‡‰‹•–”ƒ–‹‘ •ŠƒŽŽǡ
mutatis mutandisǡƒ’’Ž›–‘ƒƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡”•—„Ǧ”—Ž‡ȋ͵ȌǤ
ȋͷȌ Š‡
 ƒ••‹‰‡† ’—”•—ƒ– –‘ ˜‡”‹ϐ‹…ƒ–‹‘ —†‡” •—„Ǧ”—Ž‡ ȋͶȌ •ŠƒŽŽ „‡ ‡ˆˆ‡…–‹˜‡ ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ‘”†‡”
‰”ƒ–‹‰”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌǤ
Assignment of unique identity number to certain special entities [Rule 17]
ȋͳȌ ˜‡”›’‡”•‘”‡“—‹”‡†–‘„‡‰”ƒ–‡†ƒ—‹“—‡‹†‡–‹–›—„‡”—†‡”•—„Ǧ•‡…–‹‘ȋͻȌ‘ˆ•‡…–‹‘ʹͷƒ› •—„‹–
ƒ ƒ’’Ž‹…ƒ–‹‘ǡ ‡Ž‡…–”‘‹…ƒŽŽ› ‹ 
 
Ǧͳ͵ǡ †—Ž› •‹‰‡†ǡ ‹ –Š‡ ƒ‡” •’‡…‹ϐ‹‡† ‹”—Ž‡ ͳ ƒ– –Š‡
‘‘‘”–ƒŽǡ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡ǡ‘–‹ϐ‹‡†„›–Š‡‘ƒ”†‘”‘‹••‹‘‡”Ǥ
ȋͳȌ Š‡‹“—‡†‡–‹–›—„‡”‰”ƒ–‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌ–‘ƒ’‡”•‘—†‡”…Žƒ—•‡ȋƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋͻȌ‘ˆ
•‡…–‹‘ʹͷ•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡–‡””‹–‘”›‘ˆ†‹ƒȋƒ•‹•‡”–‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘Ǥ͹ͷȀʹͲͳ͹Ǧ‡–”ƒŽƒšȌ
ȋʹȌ Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ—’‘•—„‹••‹‘‘ˆƒƒ’’Ž‹…ƒ–‹‘‹ 

Ǧͳ͵‘”ƒˆ–‡”ϐ‹ŽŽ‹‰—’–Š‡•ƒ‹†
ˆ‘”‘”ƒˆ–‡””‡…‡‹˜‹‰ƒ”‡…‘‡†ƒ–‹‘ˆ”‘–Š‡‹‹•–”›‘ˆš–‡”ƒŽˆˆƒ‹”•ǡ
‘˜‡”‡–‘ˆ†‹ƒǡƒ••‹‰
ƒ‹“—‡†‡–‹–›—„‡”–‘–Š‡•ƒ‹†’‡”•‘ƒ†‹••—‡ƒ…‡”–‹ϐ‹…ƒ–‡‹ 

ǦͲ͸™‹–Š‹–Š”‡‡™‘”‹‰
†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆƒ’’Ž‹…ƒ–‹‘Ǥ
‹•’Žƒ›‘ˆ”‡‰‹•–”ƒ–‹‘…‡”–‹ϐ‹…ƒ–‡ƒ†
‘–Š‡ƒ‡„‘ƒ”†ȏ—Ž‡ͳͺȐ

˜‡”›”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ†‹•’Žƒ›Š‹•
…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‹ƒ ’”‘‹‡–
Ž‘…ƒ–‹‘ ƒ– Š‹• ’”‹…‹’ƒŽ place of
business ƒ† ƒ– ‡˜‡”› additional
place or places of business

˜‡”› ”‡‰‹•–‡”‡† ’‡”•‘ •ŠƒŽŽ †‹•’Žƒ›

Š‹•
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘
—„‡” ‘ –Š‡ ƒ‡ „‘ƒ”† ‡šŠ‹„‹–‡†
ƒ– –Š‡ ‡–”› ‘ˆ Š‹• principal place of
business ƒ† ƒ– ‡˜‡”› additional
place or places of businessǤ

Amendment of Registration [Rule 19]

ȋͳȌ Š‡”‡–Š‡”‡‹•ƒ›…Šƒ‰‡‹ƒ›‘ˆ–Š‡’ƒ”–‹…—Žƒ”•ˆ—”‹•Š‡†‹–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‹ 


ǦͲͳ‘” 

ǦͲ͹‘” 

ǦͲͻ‘” 

ͳͲ‘” 
Ǧ
Ǧͳ͵ǡƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ‡‹–Š‡”ƒ––Š‡–‹‡‘ˆ‘„–ƒ‹‹‰”‡‰‹•–”ƒ–‹‘‘”ƒ•ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡ǡ–Š‡”‡‰‹•–‡”‡†’‡”•‘
•ŠƒŽŽǡ™‹–Š‹ϐ‹ˆ–‡‡†ƒ›•‘ˆ•—…Š…Šƒ‰‡ǡ•—„‹–ƒƒ’’Ž‹…ƒ–‹‘ǡ†—Ž›•‹‰‡†ǡ‡Ž‡…–”‘‹…ƒŽŽ›‹ 

Ǧ
ͳͶǡ ƒŽ‘‰ ™‹–Š †‘…—‡–• ”‡Žƒ–‹‰ –‘ •—…Š …Šƒ‰‡ ƒ– –Š‡ ‘‘ ‘”–ƒŽ ‡‹–Š‡” †‹”‡…–Ž› ‘” –Š”‘—‰Š ƒ
ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”Ǥ
 ”‘˜‹†‡†–Šƒ–Ȃ
ȋƒȌ Š‡”‡–Š‡…Šƒ‰‡”‡Žƒ–‡•–‘Ȃ
ȋ‹Ȍ Ž‡‰ƒŽƒ‡‘ˆ„—•‹‡••Ǣ
ȋ‹‹Ȍ ƒ††”‡••‘ˆ–Š‡’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••‘”ƒ›ƒ††‹–‹‘ƒŽ’Žƒ…‡‘ˆ„—•‹‡••Ǣ‘”
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 733

ȋ‹‹‹Ȍ ƒ††‹–‹‘ǡ†‡Ž‡–‹‘‘””‡–‹”‡‡–‘ˆ’ƒ”–‡”•‘”†‹”‡…–‘”•ǡƒ”–ƒǡƒƒ‰‹‰‘‹––‡‡ǡ‘ƒ”†‘ˆ
”—•–‡‡•ǡŠ‹‡ˆš‡…—–‹˜‡ˆϐ‹…‡”‘”‡“—‹˜ƒŽ‡–ǡ”‡•’‘•‹„Ž‡ˆ‘”†ƒ›–‘†ƒ›ƒˆˆƒ‹”•‘ˆ–Š‡„—•‹‡••ǡȂ
 ™Š‹…Š†‘‡•‘–™ƒ””ƒ–…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘—†‡”•‡…–‹‘ʹͻǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ
ƒ’’”‘˜‡–Š‡ƒ‡†‡–™‹–Š‹ϐ‹ˆ–‡‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘‹


ǦͳͶƒˆ–‡”†—‡˜‡”‹ϐ‹…ƒ–‹‘ƒ†‹••—‡ƒ‘”†‡”‹ 

Ǧͳͷ‡Ž‡…–”‘‹…ƒŽŽ›
ƒ† •—…Š ƒ‡†‡– •ŠƒŽŽ –ƒ‡ ‡ˆˆ‡…– ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ‘……—””‡…‡ ‘ˆ –Š‡ ‡˜‡– ™ƒ””ƒ–‹‰
ƒ‡†‡–Ǥ

ȋ„Ȍ Š‡…Šƒ‰‡”‡Žƒ–‹‰–‘•—„Ǧ…Žƒ—•‡ȋ‹Ȍƒ†•—„Ǧ…Žƒ—•‡ȋ‹‹‹Ȍ‘ˆ…Žƒ—•‡ȋƒȌ‹ƒ›–ƒ–‡‘”‹‘–‡””‹–‘”›
•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡ˆ‘”ƒŽŽ”‡‰‹•–”ƒ–‹‘•‘ˆ–Š‡”‡‰‹•–‡”‡†’‡”•‘‘„–ƒ‹‡†—†‡”–Š‡•‡”—Ž‡•‘–Š‡•ƒ‡
Ǥ
ȋ…Ȍ  Š‡”‡–Š‡…Šƒ‰‡”‡Žƒ–‡•–‘ƒ›’ƒ”–‹…—Žƒ”•‘–Š‡”–Šƒ–Š‘•‡•’‡…‹ϐ‹‡†‹…Žƒ—•‡ȋƒȌǡ–Š‡…‡”–‹ϐ‹…ƒ–‡‘ˆ
”‡‰‹•–”ƒ–‹‘ •ŠƒŽŽ •–ƒ† ƒ‡†‡† —’‘ •—„‹••‹‘ ‘ˆ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ‹ 
 
 ͳͶ ‘ –Š‡
‘‘‘”–ƒŽ
ȋ†Ȍ Š‡”‡ƒ…Šƒ‰‡‹–Š‡…‘•–‹–—–‹‘‘ˆƒ›„—•‹‡••”‡•—Ž–•‹–Š‡…Šƒ‰‡‘ˆ–Š‡‡”ƒ‡–……‘—–
—„‡” ‘ˆ ƒ ”‡‰‹•–‡”‡† ’‡”•‘ǡ –Š‡ •ƒ‹† ’‡”•‘ •ŠƒŽŽ ƒ’’Ž› ˆ‘” ˆ”‡•Š ”‡‰‹•–”ƒ–‹‘ ‹ 


ǦͲͳ
 ”‘˜‹†‡† –Šƒ– ƒ› …Šƒ‰‡ ‹ –Š‡ ‘„‹Ž‡ —„‡” ‘” ‡Ǧƒ‹Ž ƒ††”‡•• ‘ˆ –Š‡ ƒ—–Š‘”‹•‡† •‹‰ƒ–‘”› •—„‹––‡†
—†‡””—Ž‡ͳǡƒ•ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡ǡ•ŠƒŽŽ„‡…ƒ””‹‡†‘—–‘Ž›ƒˆ–‡”‘Ž‹‡˜‡”‹ϐ‹…ƒ–‹‘–Š”‘—‰Š–Š‡
‘‘‘”–ƒŽ‹–Š‡ƒ‡”’”‘˜‹†‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌ‘ˆ”—Ž‡ͺǤ
ȋͳȌ ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ •—„Ǧ”—Ž‡ ȋͳȌǡ ƒ› ’ƒ”–‹…—Žƒ” ‘ˆ –Š‡ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ”‡‰‹•–”ƒ–‹‘
•ŠƒŽŽ‘–•–ƒ†ƒ‡†‡†™‹–Š‡ˆˆ‡…–ˆ”‘ƒ†ƒ–‡‡ƒ”Ž‹‡”–Šƒ–Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹


ǦͳͶ‘–Š‡…‘‘’‘”–ƒŽ‡š…‡’–™‹–Š–Š‡‘”†‡”‘ˆ–Š‡‘‹••‹‘‡”ˆ‘””‡ƒ•‘•–‘„‡
”‡…‘”†‡†‹™”‹–‹‰ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•–Š‡‘‹••‹‘‡”ƒ›ǡ‹–Š‡•ƒ‹†‘”†‡”ǡ•’‡…‹ˆ›Ǥ
ȋʹȌ Š‡”‡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ‹• ‘ˆ –Š‡ ‘’‹‹‘ –Šƒ– –Š‡ ƒ‡†‡– •‘—‰Š– —†‡” •—„Ǧ”—Ž‡ ȋͳȌ ‹• ‡‹–Š‡” ‘–
™ƒ””ƒ–‡†‘”–Š‡†‘…—‡–•ˆ—”‹•Š‡†–Š‡”‡™‹–Šƒ”‡‹…‘’Ž‡–‡‘”‹…‘””‡…–ǡŠ‡ƒ›ǡ™‹–Š‹ϐ‹™‘”‹‰†ƒ›•
ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹ 

ǦͳͶǡ•‡”˜‡ƒ‘–‹…‡‹ 

ǦͲ͵ǡ”‡“—‹”‹‰
–Š‡”‡‰‹•–‡”‡†’‡”•‘–‘•Š‘™…ƒ—•‡ǡ™‹–Š‹•‡˜‡™‘”‹‰†ƒ›•‘ˆ–Š‡•‡”˜‹…‡‘ˆ–Š‡•ƒ‹†‘–‹…‡ǡƒ•–‘™Š›–Š‡
ƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌ•ŠƒŽŽ‘–„‡”‡Œ‡…–‡†Ǥ
ȋ͵Ȍ Š‡–ƒšƒ„Ž‡’‡”•‘•ŠƒŽŽˆ—”‹•Šƒ”‡’Ž›–‘–Š‡‘–‹…‡–‘•Š‘™…ƒ—•‡ǡ‹••—‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌǡ‹ 


ǦͲͶ™‹–Š‹•‡˜‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡•‡”˜‹…‡‘ˆ–Š‡•ƒ‹†‘–‹…‡Ǥ
ȋͶȌ Š‡”‡–Š‡”‡’Ž›ˆ—”‹•Š‡†—†‡”•—„Ǧ”—Ž‡ȋ͵Ȍ‹•ˆ‘—†–‘„‡‘–•ƒ–‹•ˆƒ…–‘”›‘”™Š‡”‡‘”‡’Ž›‹•ˆ—”‹•Š‡†
‹ ”‡•’‘•‡ –‘ –Š‡ ‘–‹…‡ ‹••—‡† —†‡” •—„Ǧ”—Ž‡ ȋʹȌ ™‹–Š‹ –Š‡ ’‡”‹‘† ’”‡•…”‹„‡† ‹ •—„Ǧ”—Ž‡ ȋ͵Ȍǡ –Š‡
’”‘’‡”‘ˆˆ‹…‡”•ŠƒŽŽ”‡Œ‡…––Š‡ƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌƒ†’ƒ••ƒ‘”†‡”‹ 


ǦͲͷǤ
ȋͷȌ ˆ–Š‡’”‘’‡”‘ˆϐ‹…‡”ˆƒ‹Ž•–‘–ƒ‡ƒ›ƒ…–‹‘Ǧ
ȋƒȌ ™‹–Š‹ϐ‹ˆ–‡‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆƒ’’Ž‹…ƒ–‹‘ǡ‘”
ȋ„Ȍ ™‹–Š‹•‡˜‡™‘”‹‰†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ”‡’Ž›–‘–Š‡‘–‹…‡–‘•Š‘™…ƒ—•‡—†‡”•—„Ǧ”—Ž‡
ȋ͵Ȍǡ –Š‡ …‡”–‹ϐ‹…ƒ–‡ ‘ˆ ”‡‰‹•–”ƒ–‹‘ •ŠƒŽŽ •–ƒ† ƒ‡†‡† –‘ –Š‡ ‡š–‡– ƒ’’Ž‹‡† ˆ‘” ƒ† –Š‡ ƒ‡†‡†
…‡”–‹ϐ‹…ƒ–‡•ŠƒŽŽ„‡ƒ†‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡”‡‰‹•–‡”‡†’‡”•‘‘–Š‡‘‘‘”–ƒŽǤ
Application for cancellation of registration [Rule 20]
”‡‰‹•–‡”‡†’‡”•‘ǡ‘–Š‡”–Šƒƒ’‡”•‘–‘™Š‘ƒ”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‰”ƒ–‡†—†‡””—Ž‡ͳʹ‘”ƒ’‡”•‘–‘
™Š‘ ƒ ‹“—‡ †‡–‹–› —„‡” Šƒ• „‡‡ ‰”ƒ–‡† —†‡” ”—Ž‡ ͳ͹ǡ •‡‡‹‰ …ƒ…‡ŽŽƒ–‹‘ ‘ˆ Š‹• ”‡‰‹•–”ƒ–‹‘
—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͻ•ŠƒŽŽ‡Ž‡…–”‘‹…ƒŽŽ›•—„‹–ƒƒ’’Ž‹…ƒ–‹‘‹ 

Ǧͳ͸ǡ‹…Ž—†‹‰
–Š‡”‡‹–Š‡†‡–ƒ‹Ž•‘ˆ‹’—–•Š‡Ž†‹•–‘…‘”‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧˆ‹‹•Š‡†‘”ˆ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…
ƒ†‘ˆ…ƒ’‹–ƒŽ‰‘‘†•Š‡Ž†‹•–‘…‘–Š‡†ƒ–‡ˆ”‘™Š‹…Š–Š‡…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘‹••‘—‰Š–ǡŽ‹ƒ„‹Ž‹–›
–Š‡”‡‘ǡ –Š‡ †‡–ƒ‹Ž• ‘ˆ –Š‡ ’ƒ›‡–ǡ ‹ˆ ƒ›ǡ ƒ†‡ ƒ‰ƒ‹•– •—…Š Ž‹ƒ„‹Ž‹–› ƒ† ƒ› ˆ—”‹•Šǡ ƒŽ‘‰ ™‹–Š –Š‡
ƒ’’Ž‹…ƒ–‹‘ǡ”‡Ž‡˜ƒ–†‘…—‡–•‹•—’’‘”––Š‡”‡‘ˆǡƒ––Š‡…‘‘’‘”–ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•‘ˆ–Š‡
 734 Lesson 15 Ȉ EP-TL

‘……—””‡…‡‘ˆ–Š‡‡˜‡–™ƒ””ƒ–‹‰–Š‡…ƒ…‡ŽŽƒ–‹‘ǡ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ˆ‹‡†„›
–Š‡‘‹••‹‘‡”Ǥ
ƒ’‡”•‘–‘™Š‘ƒ
”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡
‰”ƒ–‡†—†‡””—Ž‡ͳʹ
”‡‰‹•–‡”‡†’‡”•‘ǡ
–‘™Š‘ƒ‹“—‡ †‡–‹–›
‘–Š‡”–Šƒ
—„‡”Šƒ• „‡‡‰”ƒ–‡†
—†‡””—Ž‡ ͳ͹

†‡–ƒ‹Ž•‘ˆ‹’—–•Š‡Ž†‹
•–‘…
—Ž‡ʹͲ
ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹
•–‘…
•ŠƒŽŽ‡Ž‡…–”‘‹…ƒŽŽ›
•—„‹–ƒƒ’’Ž‹…ƒ–‹‘ ‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧ
‹ 

Ǧͳ͸ǡ ϐ‹‹•Š‡†
‹…Ž—†‹‰–Š‡”‡‹
‘ˆ…ƒ’‹–ƒŽ‰‘‘†•Š‡Ž†‹
•–‘…‘–Š‡†ƒ–‡ˆ”‘
™Š‹…Š–Š‡…ƒ…‡ŽŽƒ–‹‘‘ˆ
”‡‰‹•–”ƒ–‹‘‹••‘—‰Š–

Ž‹ƒ„‹Ž‹–›–Š‡”‡‘ƒ† †‡–ƒ‹Ž•
‘ˆ’ƒ›‡–ǡ‹ˆ ƒ›ǡƒ†‡
ƒ‰ƒ‹•–•—…Š Ž‹ƒ„‹Ž‹–›

Registration liable to cancellation in certain cases [Rule 21]

ȋƒȌ †‘‡• ‘– …‘†—…– ƒ› „—•‹‡•• ˆ”‘ –Š‡ †‡…Žƒ”‡†

’Žƒ…‡‘ˆ „—•‹‡••Ǣor

ȋ„Ȍ ‹••—‡• ‹˜‘‹…‡ ‘” „‹ŽŽ ™‹–Š‘—– •—’’Ž› ‘ˆ ‰‘‘†• ‘”
•‡”˜‹…‡•‘”„‘–Š‹˜‹‘Žƒ–‹‘‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•
…–ǡ‘”–Š‡”—Ž‡•ƒ†‡ –Š‡”‡—†‡”Ǣ or

Š‡”‡‰‹•–”ƒ–‹‘‰”ƒ–‡†–‘ƒ
’‡”•‘‹•Ž‹ƒ„Ž‡–‘„‡ …ƒ…‡ŽŽ‡†ǡ
‹ˆ–Š‡•ƒ‹†’‡”•‘Ǧ
ȋ…Ȍ ˜‹‘Žƒ–‡• –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ ͳ͹ͳ ‘ˆ –Š‡ …– ‘”
–Š‡”—Ž‡• ƒ†‡ –Š‡”‡—†‡”Ǣ‘”
ȋ†Ȍ ˜‹‘Žƒ–‡•–Š‡’”‘˜‹•‹‘‘ˆ”—Ž‡ͳͲǢ‘”
ȋ‡Ȍ ƒ˜ƒ‹Ž•‹’—––ƒš…”‡†‹–‹˜‹‘Žƒ–‹‘‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ
•‡…–‹‘ͳ͸‘ˆ–Š‡…–‘”–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”Ǣ‘”

ȋˆȌ ˆ—”‹•Š‡• –Š‡ †‡–ƒ‹Ž• ‘ˆ ‘—–™ƒ”† •—’’Ž‹‡• ‹ 

ͳ—†‡”•‡…–‹‘͵͹ˆ‘”‘‡‘”‘”‡–ƒš’‡”‹‘†•
™Š‹…Š‹•‹‡š…‡••‘ˆ–Š‡‘—–™ƒ”† •—’’Ž‹‡•†‡…Žƒ”‡†
„› Š‹ ‹ Š‹• ˜ƒŽ‹† ”‡–—” —†‡” •‡…–‹‘ ͵ͻ ˆ‘” –Š‡
•ƒ‹†–ƒš’‡”‹‘†•Ǣ‘”

ȋ‰Ȍ ˜‹‘Žƒ–‡•–Š‡’”‘˜‹•‹‘‘ˆ”—Ž‡ͺ͸Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 735

Suspension of Registration [ Rule 21A]

ȋͳȌ Š‡”‡ƒ”‡‰‹•–‡”‡†’‡”•‘Šƒ•ƒ’’Ž‹‡†ˆ‘”…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘—†‡””—Ž‡ʹͲǡ–Š‡”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡
†‡‡‡†–‘„‡•—•’‡†‡†ˆ”‘–Š‡†ƒ–‡‘ˆ•—„‹••‹‘‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‘”–Š‡†ƒ–‡ˆ”‘™Š‹…Š –Š‡…ƒ…‡ŽŽƒ–‹‘
‹••‘—‰Š–ǡ™Š‹…Š‡˜‡”‹•Žƒ–‡”ǡ’‡†‹‰–Š‡…‘’Ž‡–‹‘‘ˆ’”‘…‡‡†‹‰•ˆ‘”…ƒ…‡ŽŽƒ–‹‘‘ˆ ”‡‰‹•–”ƒ–‹‘—†‡””—Ž‡
ʹʹǤ
ȋʹȌ Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”Šƒ•”‡ƒ•‘•–‘„‡Ž‹‡˜‡–Šƒ––Š‡”‡‰‹•–”ƒ–‹‘‘ˆƒ’‡”•‘‹•Ž‹ƒ„Ž‡–‘„‡…ƒ…‡ŽŽ‡†—†‡”
•‡…–‹‘ʹͻ‘”—†‡””—Ž‡ʹͳǡŠ‡ƒ›ǡ•—•’‡†–Š‡”‡‰‹•–”ƒ–‹‘‘ˆ•—…Š’‡”•‘™‹–Š‡ˆˆ‡…–ˆ”‘ƒ†ƒ–‡–‘„‡
†‡–‡”‹‡†„›Š‹ǡ’‡†‹‰–Š‡…‘’Ž‡–‹‘‘ˆ–Š‡’”‘…‡‡†‹‰•ˆ‘”…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘—†‡””—Ž‡ʹʹǤ
ȋʹȌ Š‡”‡ǡƒ…‘’ƒ”‹•‘‘ˆ–Š‡”‡–—”•ˆ—”‹•Š‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘—†‡”•‡…–‹‘͵ͻ™‹–Š
ȋƒȌ –Š‡†‡–ƒ‹Ž•‘ˆ‘—–™ƒ”†•—’’Ž‹‡•ˆ—”‹•Š‡†‹ 
ͳǢ‘”
ȋ„Ȍ –Š‡ †‡–ƒ‹Ž• ‘ˆ ‹™ƒ”† •—’’Ž‹‡• †‡”‹˜‡† „ƒ•‡† ‘ –Š‡ †‡–ƒ‹Ž• ‘ˆ ‘—–™ƒ”† •—’’Ž‹‡• ˆ—”‹•Š‡† „› Š‹•
•—’’Ž‹‡”•‹–Š‡‹” 
ͳǡ
 ‘”•—…Š‘–Š‡”ƒƒŽ›•‹•ǡƒ•ƒ›„‡…ƒ””‹‡†‘—–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ•Š‘™–Šƒ––Š‡”‡ƒ”‡
•‹‰‹ϐ‹…ƒ–†‹ˆˆ‡”‡…‡•‘”ƒ‘ƒŽ‹‡•‹†‹…ƒ–‹‰…‘–”ƒ˜‡–‹‘‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–‘”–Š‡”—Ž‡•ƒ†‡
–Š‡”‡—†‡”ǡŽ‡ƒ†‹‰–‘…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘‘ˆ–Š‡•ƒ‹†’‡”•‘ǡŠ‹•”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡•—•’‡†‡†ƒ†
–Š‡•ƒ‹†’‡”•‘•ŠƒŽŽ„‡‹–‹ƒ–‡†‹ 

͵ͳǡ‡Ž‡…–”‘‹…ƒŽŽ›ǡ‘–Š‡…‘‘’‘”–ƒŽǡ‘”„›•‡†‹‰
ƒ…‘—‹…ƒ–‹‘–‘Š‹•‡Ǧƒ‹Žƒ††”‡••’”‘˜‹†‡†ƒ––Š‡–‹‡‘ˆ”‡‰‹•–”ƒ–‹‘‘”ƒ•ƒ‡†‡†ˆ”‘–‹‡–‘–‹‡ǡ
Š‹‰ŠŽ‹‰Š–‹‰–Š‡•ƒ‹††‹ˆˆ‡”‡…‡•ƒ†ƒ‘ƒŽ‹‡•ƒ†ƒ•‹‰Š‹–‘‡š’Žƒ‹ǡ™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•ǡƒ•
–‘™Š›Š‹•”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ‘–„‡…ƒ…‡ŽŽ‡†Ǥ
ȋ͵Ȍ ”‡‰‹•–‡”‡†’‡”•‘ǡ™Š‘•‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡•—•’‡†‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘”•—„Ǧ”—Ž‡ȋʹȌ‘”•—„Ǧ”—Ž‡
ȋʹȌǡ•ŠƒŽŽ‘–ƒ‡ƒ›–ƒšƒ„Ž‡•—’’Ž›†—”‹‰–Š‡’‡”‹‘†‘ˆ•—•’‡•‹‘ƒ†•ŠƒŽŽ‘–„‡”‡“—‹”‡†–‘ˆ—”‹•Š
ƒ›”‡–—”—†‡”•‡…–‹‘͵ͻǤ
 š’Žƒƒ–‹‘ǤǦ ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• •—„Ǧ”—Ž‡ǡ –Š‡ ‡š’”‡••‹‘ Dz•ŠƒŽŽ ‘– ƒ‡ ƒ› –ƒšƒ„Ž‡ •—’’Ž›dz •ŠƒŽŽ
‡ƒ –Šƒ– –Š‡ ”‡‰‹•–‡”‡† ’‡”•‘ •ŠƒŽŽ ‘– ‹••—‡ ƒ –ƒš ‹˜‘‹…‡ ƒ†ǡ ƒ……‘”†‹‰Ž›ǡ ‘– …Šƒ”‰‡ –ƒš ‘ •—’’Ž‹‡•
ƒ†‡„›Š‹†—”‹‰–Š‡’‡”‹‘†‘ˆ•—•’‡•‹‘Ǥ
ȋ͵Ȍ ”‡‰‹•–‡”‡†’‡”•‘ǡ™Š‘•‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡•—•’‡†‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌ‘”•—„Ǧ”—Ž‡ȋʹȌǡ•ŠƒŽŽ‘–„‡
‰”ƒ–‡†ƒ›”‡ˆ—†—†‡”•‡…–‹‘ͷͶǡ†—”‹‰–Š‡’‡”‹‘†‘ˆ•—•’‡•‹‘‘ˆŠ‹•”‡‰‹•–”ƒ–‹‘Ǥ
ȋͶȌ Š‡•—•’‡•‹‘‘ˆ”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ”—Ž‡ȋͳȌ‘”•—„Ǧ”—Ž‡ȋʹȌ‘”•—„Ǧ”—Ž‡ȋʹȌ•ŠƒŽŽ„‡†‡‡‡†–‘„‡
”‡˜‘‡†—’‘…‘’Ž‡–‹‘‘ˆ–Š‡’”‘…‡‡†‹‰•„›–Š‡’”‘’‡”‘ˆϐ‹…‡”—†‡””—Ž‡ʹʹƒ†•—…Š”‡˜‘…ƒ–‹‘•ŠƒŽŽ„‡
‡ˆˆ‡…–‹˜‡ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡•—•’‡•‹‘Šƒ†…‘‡‹–‘‡ˆˆ‡…–Ǥ
 ”‘˜‹†‡†–Šƒ––Š‡•—•’‡•‹‘‘ˆ”‡‰‹•–”ƒ–‹‘—†‡”–Š‹•”—Ž‡ƒ›„‡”‡˜‘‡†„›–Š‡’”‘’‡”‘ˆϐ‹…‡”ǡƒ›–‹‡
†—”‹‰–Š‡’‡†‡…›‘ˆ–Š‡’”‘…‡‡†‹‰•ˆ‘”…ƒ…‡ŽŽƒ–‹‘ǡ‹ˆŠ‡†‡‡•ϐ‹–Ǥ
ȋͷȌ Š‡”‡ƒ›‘”†‡”Šƒ˜‹‰–Š‡‡ˆˆ‡…–‘ˆ”‡˜‘…ƒ–‹‘‘ˆ•—•’‡•‹‘‘ˆ”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡’ƒ••‡†ǡ–Š‡’”‘˜‹•‹‘•
‘ˆ…Žƒ—•‡ȋƒȌ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳƒ†•‡…–‹‘ͶͲ‹”‡•’‡…–‘ˆ–Š‡•—’’Ž‹‡•ƒ†‡†—”‹‰–Š‡’‡”‹‘†
‘ˆ•—•’‡•‹‘ƒ†–Š‡’”‘…‡†—”‡•’‡…‹ϐ‹‡†–Š‡”‡‹•ŠƒŽŽƒ’’Ž›Ǥ
Cancellation of registration [Rule 22]
ȋͳȌ Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”Šƒ•”‡ƒ•‘•–‘„‡Ž‹‡˜‡–Šƒ––Š‡”‡‰‹•–”ƒ–‹‘‘ˆƒ’‡”•‘‹•Ž‹ƒ„Ž‡–‘„‡…ƒ…‡ŽŽ‡†—†‡”
•‡…–‹‘ʹͻǡŠ‡•ŠƒŽŽ‹••—‡ƒ‘–‹…‡–‘•—…Š’‡”•‘‹ 

Ǧͳ͹ǡ”‡“—‹”‹‰Š‹–‘•Š‘™ …ƒ—•‡ ™‹–Š‹
•‡˜‡ ™‘”‹‰ †ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•‡”˜‹…‡‘ˆ•—…Š‘–‹…‡ƒ•–‘™Š›Š‹•”‡‰‹•–”ƒ–‹‘•Š‘—Ž†‘–„‡…ƒ…‡ŽŽ‡†Ǥ
ȋʹȌ Š‡ ”‡’Ž› –‘ –Š‡ •Š‘™Ǧ…ƒ—•‡ ‘–‹…‡ ‹••—‡† —†‡” •—„Ǧ”—Ž‡ ȋͳȌ •ŠƒŽŽ „‡ ˆ—”‹•Š‡†‹  
Ȃͳͺ ™‹–Š‹
–Š‡’‡”‹‘†’”‡•…”‹„‡†‹–Š‡•ƒ‹†•—„Ǧ”—Ž‡Ǥ
ȋ͵Ȍ Š‡”‡ƒ’‡”•‘™Š‘Šƒ••—„‹––‡†ƒƒ’’Ž‹…ƒ–‹‘ˆ‘”…ƒ…‡ŽŽƒ–‹‘‘ˆŠ‹•”‡‰‹•–”ƒ–‹‘‹•‘Ž‘‰‡”Ž‹ƒ„Ž‡–‘„‡
”‡‰‹•–‡”‡†‘”Š‹•”‡‰‹•–”ƒ–‹‘‹•Ž‹ƒ„Ž‡–‘„‡…ƒ…‡ŽŽ‡†ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ‹••—‡ƒ‘”†‡”‹ 


Ǧͳͻǡ™‹–Š‹–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆƒ’’Ž‹…ƒ–‹‘•—„‹––‡†—†‡””—Ž‡ʹͲ‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡
†ƒ–‡‘ˆ”‡’Ž›–‘–Š‡•Š‘™…ƒ—•‡‹••—‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌǡ‘”—†‡”•—„Ǧ”—Ž‡ȋʹȌ‘ˆ”—Ž‡ʹͳ…ƒ…‡Ž–Š‡
”‡‰‹•–”ƒ–‹‘ǡ™‹–Š‡ˆˆ‡…–ˆ”‘ƒ†ƒ–‡–‘„‡†‡–‡”‹‡†„›Š‹ƒ†‘–‹ˆ›–Š‡–ƒšƒ„Ž‡ ’‡”•‘ǡ †‹”‡…–‹‰–‘’ƒ›
ƒ””‡ƒ”•‘ˆƒ›–ƒšǡ‹–‡”‡•–‘”’‡ƒŽ–›‹…Ž—†‹‰–Š‡ƒ‘—–Ž‹ƒ„Ž‡–‘„‡’ƒ‹†—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘ʹͻǤ
 736 Lesson 15 Ȉ EP-TL

ȋͶȌ Š‡”‡–Š‡”‡’Ž›ˆ—”‹•Š‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌ‘”‹”‡•’‘•‡–‘–Š‡‘–‹…‡‹••—‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌ‘ˆ”—Ž‡
ʹͳ–‘–Š‡‹•ˆ‘—†–‘„‡•ƒ–‹•ˆƒ…–‘”›ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ†”‘’–Š‡”‘…‡‡†‹‰•ƒ†’ƒ••ƒ‘”†‡”‹ 


ȂʹͲǤ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡’‡”•‘‹•–‡ƒ†‘ˆ”‡’Ž›‹‰–‘–Š‡‘–‹…‡•‡”˜‡†—†‡”•—„Ǧ”—Ž‡ȋͳȌˆ‘”…‘–”ƒ˜‡–‹‘
‘ˆ–Š‡’”‘˜‹•‹‘•…‘–ƒ‹‡†‹…Žƒ—•‡ȋ„Ȍ‘”…Žƒ—•‡ȋ…Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ʹͻǡˆ—”‹•Š‡•ƒŽŽ–Š‡’‡†‹‰
”‡–—”•ƒ†ƒ‡•ˆ—ŽŽ’ƒ›‡–‘ˆ–Š‡–ƒš†—‡•ƒŽ‘‰™‹–Šƒ’’Ž‹…ƒ„Ž‡‹–‡”‡•–ƒ†Žƒ–‡ˆ‡‡ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”
•ŠƒŽŽ†”‘’–Š‡’”‘…‡‡†‹‰•ƒ†’ƒ••ƒ‘”†‡”‹ 
Ǧ
ʹͲǤ
ȋͷȌ Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ”—Ž‡ȋ͵Ȍ•ŠƒŽŽǡmutatis mutandisǡƒ’’Ž›–‘–Š‡Ž‡‰ƒŽŠ‡‹”•‘ˆƒ†‡…‡ƒ•‡†’”‘’”‹‡–‘”ǡƒ•‹ˆ
–Š‡ƒ’’Ž‹…ƒ–‹‘Šƒ†„‡‡•—„‹––‡†„›–Š‡’”‘’”‹‡–‘”Š‹•‡ŽˆǤ
Revocation of cancellation of registration [Rule 23]
ȋͳȌ ”‡‰‹•–‡”‡† ’‡”•‘ǡ™Š‘•‡”‡‰‹•–”ƒ–‹‘‹•…ƒ…‡ŽŽ‡†„›–Š‡’”‘’‡”‘ˆϐ‹…‡”‘Š‹•‘™‘–‹‘ǡƒ›•—„‹–ƒ
ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘ǡ‹ 

Ǧʹͳǡ–‘•—…Š’”‘’‡”‘ˆϐ‹…‡”ǡ™‹–Š‹
–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•‡”˜‹…‡‘ˆ–Š‡‘”†‡”‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘‘”™‹–Š‹•—…Š–‹‡’‡”‹‘†ƒ•
‡š–‡†‡†„›–Š‡††‹–‹‘ƒŽ‘‹••‹‘‡”‘”–Š‡Œ‘‹–‘‹••‹‘‡”‘”–Š‡‘‹••‹‘‡”ǡƒ•–Š‡…ƒ•‡›„‡ǡ
‹‡š‡”…‹•‡‘ˆ–Š‡’‘™‡”•’”‘˜‹†‡†—†‡”–Š‡’”‘˜‹•‘–‘•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵Ͳƒ––Š‡‘‘‘”–ƒŽ
‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”ǣ
 ”‘˜‹†‡†–Šƒ–‘ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡˜‘…ƒ–‹‘•ŠƒŽŽ„‡ϐ‹Ž‡†‹ˆ–Š‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡…ƒ…‡ŽŽ‡†ˆ‘”–Š‡ˆƒ‹Ž—”‡
‘ˆ–Š‡–ƒšƒ„Ž‡’‡”•‘–‘ˆ—”‹•Š”‡–—”•ǡ—Ž‡•••—…Š”‡–—”•ƒ”‡ϐ‹Ž‡†ƒ†ƒ›ƒ‘—–†—‡ƒ•–ƒšǡ‹–‡”•‘ˆ
•—…Š”‡–—”•Šƒ•„‡‡’ƒ‹†ƒŽ‘‰™‹–Šƒ›ƒ‘—–’ƒ›ƒ„Ž‡–‘™ƒ”†•‹–‡”‡•–ǡ’‡ƒŽ–‹‡•ƒ†Žƒ–‡ˆ‡‡’ƒ›ƒ„Ž‡‹
”‡•’‡…–‘ˆ–Š‡•ƒ‹†”‡–—”•Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–ƒŽŽ”‡–—”•†—‡ˆ‘”–Š‡’‡”‹‘†ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡‘”†‡”‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘
–‹ŽŽ–Š‡†ƒ–‡‘ˆ–Š‡‘”†‡”‘ˆ”‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘•ŠƒŽŽ„‡ˆ—”‹•Š‡†„›–Š‡•ƒ‹†’‡”•‘
™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‘”†‡”‘ˆ”‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘ǣ
 ”‘˜‹†‡†ƒŽ•‘–Šƒ–™Š‡”‡–Š‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡…ƒ…‡ŽŽ‡†™‹–Š”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…–ǡ–Š‡”‡‰‹•–‡”‡†’‡”•‘
•ŠƒŽŽˆ—”‹•ŠƒŽŽ”‡–—”•”‡Žƒ–‹‰–‘’‡”‹‘†ˆ”‘–Š‡‡ˆˆ‡…–‹˜‡†ƒ–‡‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘–‹ŽŽ–Š‡†ƒ–‡‘ˆ
‘”†‡”‘ˆ”‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‘”†‡”‘ˆ
”‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘Ǥ
ȋʹȌȋƒȌ Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†ǡˆ‘””‡ƒ•‘•–‘„‡”‡…‘”†‡†‹™”‹–‹‰ǡ–Šƒ––Š‡”‡ƒ”‡•—ˆϐ‹…‹‡–
‰”‘—†•ˆ‘””‡˜‘…ƒ–‹‘‘ˆ…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘ǡŠ‡•ŠƒŽŽ”‡˜‘‡–Š‡…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘
„›ƒ‘”†‡”‹ 

Ǧʹʹ™‹–Š‹–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘ƒ†
…‘—‹…ƒ–‡–Š‡•ƒ‡–‘–Š‡ƒ’’Ž‹…ƒ–Ǥ
ȋ„Ȍ Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡˆ‘””‡ƒ•‘•–‘„‡”‡…‘”†‡†‹™”‹–‹‰ǡ—†‡”…‹”…—•–ƒ…‡•‘–Š‡”–Šƒ–Š‘•‡
•’‡…‹ϐ‹‡† ‹ …Žƒ—•‡ ȋƒȌǡ „› ƒ ‘”†‡” ‹ 
 
ǦͲͷǡ ”‡Œ‡…– –Š‡ ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ”‡˜‘…ƒ–‹‘ ‘ˆ
…ƒ…‡ŽŽƒ–‹‘‘ˆ”‡‰‹•–”ƒ–‹‘ƒ†…‘—‹…ƒ–‡–Š‡•ƒ‡–‘–Š‡ƒ’’Ž‹…ƒ–Ǥ
ȋ͵Ȍ Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽǡ„‡ˆ‘”‡’ƒ••‹‰–Š‡‘”†‡””‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ„Ȍ‘ˆ•—„Ǧ”—Ž‡ȋʹȌǡ‹••—‡ƒ‘–‹…‡‹


Ȃʹ͵”‡“—‹”‹‰–Š‡ƒ’’Ž‹…ƒ––‘•Š‘™…ƒ—•‡ƒ•–‘™Š›–Š‡ƒ’’Ž‹…ƒ–‹‘•—„‹––‡†ˆ‘””‡˜‘…ƒ–‹‘
—†‡”•—„Ǧ”—Ž‡ȋͳȌ•Š‘—Ž†‘–„‡”‡Œ‡…–‡†ƒ†–Š‡ƒ’’Ž‹…ƒ–•ŠƒŽŽˆ—”‹•Š–Š‡”‡’Ž›™‹–Š‹•‡˜‡™‘”‹‰†ƒ›•
ˆ”‘–Š‡†ƒ–‡‘ˆ–Š‡•‡”˜‹…‡‘ˆ‘–‹…‡‹ 

ǦʹͶǤ
ȋͶȌ ’‘ ”‡…‡‹’– ‘ˆ –Š‡ ‹ˆ‘”ƒ–‹‘ ‘” …Žƒ”‹ϐ‹…ƒ–‹‘ ‹ 
 
ǦʹͶǡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” ƒ› ’”‘…‡‡† –‘
†‹•’‘•‡‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‹–Š‡ƒ‡”•’‡…‹ϐ‹‡†‹•—„Ǧ”—Ž‡ȋʹȌ™‹–Š‹–Š‹”–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–
‘ˆ•—…Š‹ˆ‘”ƒ–‹‘‘”…Žƒ”‹ϐ‹…ƒ–‹‘ˆ”‘–Š‡ƒ’’Ž‹…ƒ–Ǥ
Š›•‹…ƒŽ˜‡”‹ϐ‹…ƒ–‹‘‘ˆ„—•‹‡••’”‡‹•‡•‹…‡”–ƒ‹…ƒ•‡•ȏ—Ž‡ʹͷȐ
Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡’Š›•‹…ƒŽ˜‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡’Žƒ…‡‘ˆ„—•‹‡••‘ˆƒ’‡”•‘‹•”‡“—‹”‡††—‡
–‘ˆƒ‹Ž—”‡‘ˆƒ†Šƒƒ”ƒ—–Š‡–‹…ƒ–‹‘‘”†—‡–‘‘–‘’–‹‰ˆ‘”ƒ†Šƒƒ”ƒ—–Š‡–‹…ƒ–‹‘„‡ˆ‘”‡–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘ǡ
‘”†—‡–‘ƒ›‘–Š‡””‡ƒ•‘ƒˆ–‡”–Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘ǡŠ‡ƒ›‰‡–•—…Š˜‡”‹ϐ‹…ƒ–‹‘‘ˆ–Š‡’Žƒ…‡‘ˆ„—•‹‡••ǡ‹–Š‡
’”‡•‡…‡‘ˆ–Š‡•ƒ‹†’‡”•‘ǡ†‘‡ƒ†–Š‡˜‡”‹ϐ‹…ƒ–‹‘”‡’‘”–ƒŽ‘‰™‹–Š–Š‡‘–Š‡”†‘…—‡–•ǡ‹…Ž—†‹‰’Š‘–‘‰”ƒ’Š•ǡ
•ŠƒŽŽ„‡—’Ž‘ƒ†‡†‹ 

Ǧ͵Ͳ‘–Š‡…‘‘’‘”–ƒŽ™‹–Š‹ƒ’‡”‹‘†‘ˆϐ‹ˆ–‡‡™‘”‹‰†ƒ›•ˆ‘ŽŽ‘™‹‰–Š‡
†ƒ–‡‘ˆ•—…Š˜‡”‹ϐ‹…ƒ–‹‘Ǥȋ•—„•–‹–—–‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘—„‡”ͳ͸ȀʹͲʹͲǦ†ƒ–‡†ʹ͵ǤͲ͵ǤʹͲʹͲȌ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 737

‡–Š‘†‘ˆ—–Š‡–‹…ƒ–‹‘ȏ—Ž‡ʹ͸Ȑ
ȋͳȌ ŽŽƒ’’Ž‹…ƒ–‹‘•ǡ‹…Ž—†‹‰”‡’Ž›ǡ‹ˆƒ›ǡ–‘–Š‡‘–‹…‡•ǡ”‡–—”•ǡƒ’’‡ƒŽ•‘”ƒ›‘–Š‡”†‘…—‡–”‡“—‹”‡†–‘„‡
•—„‹––‡†—†‡”–Š‡•‡”—Ž‡••ŠƒŽŽ„‡•‘•—„‹––‡†‡Ž‡…–”‘‹…ƒŽŽ›ƒ––Š‡‘‘‘”–ƒŽ™‹–Š†‹‰‹–ƒŽ•‹‰ƒ–—”‡
…‡”–‹ϐ‹…ƒ–‡‘”–Š”‘—‰Š‡Ǧ•‹‰ƒ–—”‡ƒ••’‡…‹ϐ‹‡†—†‡”–Š‡ˆ‘”ƒ–‹‘‡…Š‘Ž‘‰›…–ǡʹͲͲͲȋʹͳ‘ˆʹͲͲͲȌ‘”
–Š”‘—‰Šƒ›‘–Š‡”‘†‡‘ˆ•‹‰ƒ–—”‡‘–‹ϐ‹‡†„›–Š‡‘ƒ”†‹–Š‹•„‡ŠƒŽˆǤ
 ”‘˜‹†‡† –Šƒ– ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ”‡‰‹•–‡”‡† —†‡” –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡ ‘’ƒ‹‡• …–ǡ ʹͲͳ͵ ȋͳͺ ‘ˆ
ʹͲͳ͵Ȍ•ŠƒŽŽˆ—”‹•Š–Š‡†‘…—‡–•‘”ƒ’’Ž‹…ƒ–‹‘˜‡”‹ϐ‹‡†–Š”‘—‰Š†‹‰‹–ƒŽ•‹‰ƒ–—”‡…‡”–‹ϐ‹…ƒ–‡Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–ƒ”‡‰‹•–‡”‡†’‡”•‘”‡‰‹•–‡”‡†—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ȋͳͺ‘ˆ
ʹͲͳ͵Ȍ•ŠƒŽŽǡ†—”‹‰–Š‡’‡”‹‘†ˆ”‘–Š‡ʹͳ•–†ƒ›‘ˆ’”‹ŽǡʹͲʹͲ–‘–Š‡͵Ͳ–Š†ƒ›‘ˆ‡’–‡„‡”ǡʹͲʹͲǡƒŽ•‘„‡
ƒŽŽ‘™‡†–‘ˆ—”‹•Š–Š‡”‡–—” —†‡”•‡…–‹‘͵ͻ‹ 
Ǧ͵ ˜‡”‹ϐ‹‡†–Š”‘—‰ŠŽ‡…–”‘‹…‡”‹ϐ‹…ƒ–‹‘
‘†‡ȋȌǤȋ‹•‡”–‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘Ǥ͵ͺȀʹͲʹͲǦ†–ǤͲͷǤͲͷǤʹͲʹͲ™Ǥ‡ǤˆǤʹͳǤͲͶǤʹͲʹͲȌǤ
 ”‘˜‹†‡†ƒŽ•‘–Šƒ–ƒ”‡‰‹•–‡”‡†’‡”•‘”‡‰‹•–‡”‡†—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘’ƒ‹‡•…–ǡʹͲͳ͵ȋͳͺ‘ˆ
ʹͲͳ͵Ȍ •ŠƒŽŽǡ †—”‹‰ –Š‡ ’‡”‹‘† ˆ”‘ –Š‡ ʹ͹–Š †ƒ› ‘ˆ ’”‹Žǡ ʹͲʹͳ –‘ –Š‡ ͵ͳ•– †ƒ› ‘ˆ —‰—•–ǡ ʹͲʹͳǡ ƒŽ•‘ „‡
ƒŽŽ‘™‡†–‘ˆ—”‹•Š–Š‡”‡–—”—†‡”•‡…–‹‘͵ͻ‹ 
͵ƒ†–Š‡†‡–ƒ‹Ž•‘ˆ‘—–™ƒ”†•—’’Ž‹‡•—†‡”
•‡…–‹‘͵͹‹ 
ͳ‘”—•‹‰‹˜‘‹…‡ˆ—”‹•Š‹‰ˆƒ…‹Ž‹–›ǡ˜‡”‹ϐ‹‡†–Š”‘—‰Š‡Ž‡…–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘…‘†‡
ȋȌǤ
ȋʹȌ ƒ…Š†‘…—‡–‹…Ž—†‹‰–Š‡”‡–—”ˆ—”‹•Š‡†‘Ž‹‡•ŠƒŽŽ„‡•‹‰‡†‘”˜‡”‹ϐ‹‡†–Š”‘—‰Š‡Ž‡…–”‘‹…˜‡”‹ϐ‹…ƒ–‹‘
…‘†‡Ȃ
ȋƒȌ ‹–Š‡…ƒ•‡‘ˆƒ‹†‹˜‹†—ƒŽǡ„›–Š‡‹†‹˜‹†—ƒŽŠ‹•‡Žˆ‘”„›•‘‡‘–Š‡”’‡”•‘†—Ž›ƒ—–Š‘”‹•‡†„›Š‹
‹–Š‹•„‡ŠƒŽˆǡƒ†™Š‡”‡–Š‡‹†‹˜‹†—ƒŽ‹•‡–ƒŽŽ›‹…ƒ’ƒ…‹–ƒ–‡†ˆ”‘ƒ––‡†‹‰–‘Š‹•ƒˆˆƒ‹”•ǡ„›Š‹•
‰—ƒ”†‹ƒ‘”„›ƒ›‘–Š‡”’‡”•‘…‘’‡–‡––‘ƒ…–‘Š‹•„‡ŠƒŽˆǢ
ȋ„Ȍ ‹–Š‡…ƒ•‡‘ˆƒ‹†—†‹˜‹†‡† ƒ‹Ž›ǡ„›ƒƒ”–ƒƒ†™Š‡”‡–Š‡ƒ”–ƒ‹•ƒ„•‡–ˆ”‘†‹ƒ‘”‹•
‡–ƒŽŽ›‹…ƒ’ƒ…‹–ƒ–‡†ˆ”‘ƒ––‡†‹‰–‘Š‹•ƒˆˆƒ‹”•ǡ„›ƒ›‘–Š‡”ƒ†—Ž–‡„‡”‘ˆ•—…Šˆƒ‹Ž›‘”„›
–Š‡ƒ—–Š‘”‹•‡†•‹‰ƒ–‘”›‘ˆ•—…Šƒ”–ƒǢ
ȋ…Ȍ ‹–Š‡…ƒ•‡‘ˆƒ…‘’ƒ›ǡ„›–Š‡…Š‹‡ˆ‡š‡…—–‹˜‡‘ˆϐ‹…‡”‘”ƒ—–Š‘”‹•‡†•‹‰ƒ–‘”›–Š‡”‡‘ˆǢ
ȋ†Ȍ ‹–Š‡…ƒ•‡‘ˆƒ
‘˜‡”‡–‘”ƒ›
‘˜‡”‡–ƒŽƒ‰‡…›‘”Ž‘…ƒŽƒ—–Š‘”‹–›ǡ„›ƒ‘ˆϐ‹…‡”ƒ—–Š‘”‹•‡†‹
–Š‹•„‡ŠƒŽˆǢ
ȋ‡Ȍ ‹–Š‡…ƒ•‡‘ˆƒϐ‹”ǡ„›ƒ›’ƒ”–‡”–Š‡”‡‘ˆǡ‘–„‡‹‰ƒ‹‘”‘”ƒ—–Š‘”‹•‡†•‹‰ƒ–‘”›Ǣ
ȋˆȌ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ› ‘–Š‡” ƒ••‘…‹ƒ–‹‘ǡ „› ƒ› ‡„‡” ‘ˆ –Š‡ ƒ••‘…‹ƒ–‹‘ ‘” ’‡”•‘• ‘” ƒ—–Š‘”‹•‡†
•‹‰ƒ–‘”›Ǣ
ȋ‰Ȍ ‹–Š‡…ƒ•‡‘ˆƒ–”—•–ǡ„›–Š‡–”—•–‡‡‘”ƒ›–”—•–‡‡‘”ƒ—–Š‘”‹•‡†•‹‰ƒ–‘”›Ǣ‘”
ȋŠȌ ‹ –Š‡ …ƒ•‡ ‘ˆ ƒ› ‘–Š‡” ’‡”•‘ǡ „› •‘‡ ’‡”•‘ …‘’‡–‡– –‘ ƒ…– ‘ Š‹• „‡ŠƒŽˆǡ ‘” „› ƒ ’‡”•‘
ƒ—–Š‘”‹•‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͶͺǤ
ȋ͵Ȍ ŽŽ‘–‹…‡•ǡ…‡”–‹ϐ‹…ƒ–‡•ƒ†‘”†‡”•—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•Šƒ’–‡”•ŠƒŽŽ„‡‹••—‡†‡Ž‡…–”‘‹…ƒŽŽ›„›–Š‡
’”‘’‡”‘ˆϐ‹…‡”‘”ƒ›‘–Š‡”‘ˆϐ‹…‡”ƒ—–Š‘”‹•‡†–‘‹••—‡•—…Š‘–‹…‡•‘”…‡”–‹ϐ‹…ƒ–‡•‘”‘”†‡”•ǡ–Š”‘—‰Š†‹‰‹–ƒŽ
•‹‰ƒ–—”‡…‡”–‹ϐ‹…ƒ–‡‘”–Š”‘—‰ŠǦ•‹‰ƒ–—”‡ƒ••’‡…‹ϐ‹‡†—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡ˆ‘”ƒ–‹‘‡…Š‘Ž‘‰›
…–ǡʹͲͲͲȋʹͳ‘ˆʹͲͲͲȌ‘”ͳ͹˜‡”‹ϐ‹‡†„›ƒ›‘–Š‡”‘†‡‘ˆ•‹‰ƒ–—”‡‘”˜‡”‹ϐ‹…ƒ–‹‘ƒ•‘–‹ϐ‹‡†„›–Š‡‘ƒ”†
‹–Š‹•„‡ŠƒŽˆǤ
Deemed Registration [Section-26]
ȋͳȌ Š‡‰”ƒ–‘ˆ”‡‰‹•–”ƒ–‹‘‘”–Š‡‹“—‡†‡–‹–›—„‡”—†‡”–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–‘”–Š‡
‹‘ ‡””‹–‘”›
‘‘†• ƒ† ‡”˜‹…‡• ƒš …– •ŠƒŽŽ „‡ †‡‡‡† –‘ „‡ ƒ ‰”ƒ– ‘ˆ ”‡‰‹•–”ƒ–‹‘ ‘” –Š‡ ‹“—‡
†‡–‹–›—„‡”—†‡”–Š‹•…–•—„Œ‡…––‘–Š‡…‘†‹–‹‘–Šƒ––Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‘”–Š‡‹“—‡
†‡–‹–› —„‡” Šƒ• ‘– „‡‡ ”‡Œ‡…–‡† —†‡” –Š‹• …– ™‹–Š‹ –Š‡ –‹‡ •’‡…‹ϐ‹‡† ‹ •—„Ǧ•‡…–‹‘ ȋͳͲȌ ‘ˆ
•‡…–‹‘ʹͷǤ
ȋʹȌ ‘–™‹–Š•–ƒ†‹‰ ƒ›–Š‹‰ …‘–ƒ‹‡† ‹ •—„Ǧ•‡…–‹‘ ȋͳͲȌ ‘ˆ •‡…–‹‘ ʹͷǡ ƒ› ”‡Œ‡…–‹‘ ‘ˆ ƒ’’Ž‹…ƒ–‹‘ ˆ‘”
”‡‰‹•–”ƒ–‹‘‘”–Š‡‹“—‡†‡–‹–›—„‡”—†‡”–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–‘”–Š‡‹‘‡””‹–‘”›

‘‘†•ƒ†‡”˜‹…‡•ƒš…–•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ”‡Œ‡…–‹‘‘ˆƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–Ǥ
 738 Lesson 15 Ȉ EP-TL

Special provisions relating to casual taxable person and non-resident taxable person [Section -27]
ȋͳȌ Š‡…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‹••—‡†–‘ƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘‘”ƒ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘•ŠƒŽŽ„‡˜ƒŽ‹†
ˆ‘”ƒ’‡”‹‘†•’‡…‹ϐ‹‡†‹–Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡‰‹•–”ƒ–‹‘‘”‹‡–›†ƒ›•ˆ”‘–Š‡‡ˆˆ‡…–‹˜‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘ǡ
™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”ƒ†•—…Š’‡”•‘•ŠƒŽŽƒ‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘Ž›ƒˆ–‡”–Š‡‹••—ƒ…‡‘ˆ–Š‡…‡”–‹ϐ‹…ƒ–‡‘ˆ
registration:
 ”‘˜‹†‡†–Šƒ––Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ‘•—ˆϐ‹…‹‡–…ƒ—•‡„‡‹‰•Š‘™„›–Š‡•ƒ‹†–ƒšƒ„Ž‡’‡”•‘ǡ‡š–‡†–Š‡
•ƒ‹†’‡”‹‘†‘ˆ‹‡–›†ƒ›•„›ƒˆ—”–Š‡”’‡”‹‘†‘–‡š…‡‡†‹‰‹‡–›†ƒ›•Ǥ
ȋʹȌ …ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘‘”ƒ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘•ŠƒŽŽǡƒ––Š‡–‹‡‘ˆ•—„‹••‹‘‘ˆƒ’’Ž‹…ƒ–‹‘ˆ‘”
”‡‰‹•–”ƒ–‹‘—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ʹͷǡƒ‡ƒƒ†˜ƒ…‡†‡’‘•‹–‘ˆ–ƒš‹ƒƒ‘—–‡“—‹˜ƒŽ‡––‘
–Š‡‡•–‹ƒ–‡†–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ•—…Š’‡”•‘ˆ‘”–Š‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡”‡‰‹•–”ƒ–‹‘‹••‘—‰Š–ǣ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ›‡š–‡•‹‘‘ˆ–‹‡‹••‘—‰Š–—†‡”•—„Ǧ•‡…–‹‘ȋͳȌǡ•—…Š–ƒšƒ„Ž‡’‡”•‘•ŠƒŽŽ†‡’‘•‹–
ƒƒ††‹–‹‘ƒŽƒ‘—–‘ˆ–ƒš‡“—‹˜ƒŽ‡––‘–Š‡‡•–‹ƒ–‡†–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ•—…Š’‡”•‘ˆ‘”–Š‡’‡”‹‘†ˆ‘”™Š‹…Š
–Š‡‡š–‡•‹‘‹••‘—‰Š–Ǥ
ȋ͵Ȍ Š‡ƒ‘—–†‡’‘•‹–‡†—†‡”•—„Ǧ•‡…–‹‘ȋʹȌ•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”‘ˆ•—…Š’‡”•‘
ƒ†•ŠƒŽŽ„‡—–‹Ž‹œ‡†‹–Š‡ƒ‡”provided under section 49.
Amendment of Registration [Section 28]
ȋͳȌ ˜‡”›”‡‰‹•–‡”‡†’‡”•‘ƒ†ƒ’‡”•‘–‘™Š‘ƒ‹“—‡†‡–‹–›—„‡”Šƒ•„‡‡ƒ••‹‰‡†•ŠƒŽŽ‹ˆ‘”–Š‡
’”‘’‡”‘ˆϐ‹…‡”‘ˆƒ›…Šƒ‰‡•‹–Š‡‹ˆ‘”ƒ–‹‘ˆ—”‹•Š‡†ƒ––Š‡–‹‡‘ˆ”‡‰‹•–”ƒ–‹‘‘”•—„•‡“—‡––Š‡”‡–‘ǡ
‹•—…Šˆ‘”ƒ†ƒ‡”ƒ†™‹–Š‹•—…Š’‡”‹‘†ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋʹȌ Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ‘–Š‡„ƒ•‹•‘ˆ‹ˆ‘”ƒ–‹‘ˆ—”‹•Š‡†—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘”ƒ•ƒ•…‡”–ƒ‹‡†„›Š‹ǡ
ƒ’’”‘˜‡‘””‡Œ‡…–ƒ‡†‡–•‹–Š‡”‡‰‹•–”ƒ–‹‘’ƒ”–‹…—Žƒ”•‹•—…Šƒ‡”ƒ†™‹–Š‹•—…Š’‡”‹‘†ƒ•ƒ›
„‡’”‡•…”‹„‡†Ǥ
 ”‘˜‹†‡†–Šƒ–ƒ’’”‘˜ƒŽ‘ˆ–Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ‘–„‡”‡“—‹”‡†‹”‡•’‡…–‘ˆƒ‡†‡–‘ˆ•—…Š’ƒ”–‹…—Žƒ”•
ƒ•ƒ›„‡’”‡•…”‹„‡†ǣ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ‘–”‡Œ‡…––Š‡ƒ’’Ž‹…ƒ–‹‘ˆ‘”ƒ‡†‡–‹–Š‡”‡‰‹•–”ƒ–‹‘
’ƒ”–‹…—Žƒ”•™‹–Š‘—–‰‹˜‹‰–Š‡’‡”•‘ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
ȋʹȌ ›”‡Œ‡…–‹‘‘”ƒ’’”‘˜ƒŽ‘ˆƒ‡†‡–•—†‡”–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–‘”–Š‡‹‘‡””‹–‘”›

‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ”‡Œ‡…–‹‘‘”ƒ’’”‘˜ƒŽ—†‡”–Š‹•ct.
Cancellation or Suspension of Registration [Section 29]
Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ‡‹–Š‡”Š‹•‡Žˆ‘”‘ƒ’’Ž‹…ƒ–‹‘ϐ‹Ž‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘ǡ‘”Š‹•Ž‡‰ƒŽŠ‡‹”•‹…ƒ•‡‘ˆƒ
†‡ƒ–Š ‘ˆ ƒ ”‡‰‹•–‡”‡† ’‡”•‘ǡ …ƒ…‡Ž Ȁ ”‡˜‘‡ –Š‡ ”‡‰‹•–”ƒ–‹‘ ‘ˆ •—…Š ’‡”•‘ǤŠ‹• …ƒ…‡ŽŽƒ–‹‘ …‘—Ž† „‡ ˆ”‘ƒ
’”‘•’‡…–‹˜‡Ȁ”‡–”‘•’‡…–‹˜‡†ƒ–‡ƒ•–Š‡‘ˆϐ‹…‡”ƒ›†‡‡ϐ‹–ǤŠ‹•…ƒ…‡ŽŽƒ–‹‘™‘—Ž†‹‘™ƒ›‹–‡”ˆ‡”‡™‹–Š–Š‡
Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡•ƒ‹†’‡”•‘Ǥ”‡‰‹•–‡”‡†’‡”•‘™Š‘•‡”‡‰‹•–”ƒ–‹‘‹•…ƒ…‡ŽŽ‡†™‹ŽŽŠƒ˜‡–‘†‡„‹––Š‡ ‡Ž‡…–”‘‹…
…ƒ•ŠŽ‡†‰‡”‘”‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ǡ„›ƒƒ‘—–‡“—ƒŽ–‘’—–ƒš”‡†‹–ȋȌ•‘ƒ˜ƒ‹Ž‡†‘”–Š‡ ‘—–’—––ƒš
Ž‹ƒ„‹Ž‹–›ǡ™Š‹…Š‡˜‡”‹•Š‹‰Š‡”Ǥ

TAX INVOICES, DEBIT & CREDIT NOTES

Š‡‡˜‡”ƒ–”ƒ•ƒ…–‹‘–ƒ‡•’Žƒ…‡ǡ†‹ˆˆ‡”‡–‹†•‘ˆ†‘…—‡–•ƒ”‡‹••—‡†—†‡”†‹ˆˆ‡”‡–…‹”…—•–ƒ…‡•ǡŽ‹‡
‹˜‘‹…‡ǡ…”‡†‹–‘–‡ǡ†‡„‹–‘–‡ƒ†„‹ŽŽ‘ˆ•—’’Ž›Ǥ

Tax Invoices
‡…–‹‘ ʹȋ͸͸Ȍ ‘ˆ ‡–”ƒŽ
‘‘†• Ƭ ‡”˜‹…‡• ƒš…–ǡ ʹͲͳ͹ ƒ†ƒ–‡• Dz‹˜‘‹…‡dz ‘” Dz–ƒš ‹˜‘‹…‡dz ƒ• –Š‡ –ƒš ‹˜‘‹…‡
”‡ˆ‡””‡†–‘‹•‡…–‹‘͵ͳǤ
Š‡•‹‰‹ˆ‹…ƒ…‡‘ˆ–Š‹•†‘…—‡–Šƒ•‹…”‡ƒ•‡†•—„•–ƒ–‹ƒŽŽ›™‹–Š–Š‡ƒ†˜‡–‘ˆ
Ǥ‹…‡–Š‡‹˜‘‹…‡ƒ–…Š‹‰
‡…Šƒ‹•Šƒ•„‡‡‹–”‘†—…‡†—†‡”
ǤŠ‡†‡–ƒ‹Ž•‘ˆ–Š‡‹˜‘‹…‡ˆ—”‹•Š‡†—†‡”–Š‡•–ƒ–‡‡–‘ˆ‘—–™ƒ”†
–ƒšƒ„Ž‡•—’’Ž‹‡•„›–Š‡—’’Ž‹‡”ƒ†–Šƒ–‹–Š‡‹™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•ˆ—”‹•Š‡†„›–Š‡‡…‹’‹‡–—•–ƒ–…Šƒ†
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 739

thatǯ• ƒ ’”‡Ǧ”‡“—‹•‹–‡ ˆ‘” –Š‡ ”‡…‹’‹‡– –‘ …Žƒ‹ ’—– ƒš ”‡†‹–Ǥ  –ƒš
‹˜‘‹…‡ —•– „‡ ‹••—‡† „› ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ƒ‹‰ –ƒšƒ„Ž‡ •—’’Ž‹‡•Ǥ  ‹˜‘‹…‡ ‹• ƒ …‘‡”…‹ƒŽ
‹•–”—‡–ǡ ‹••—‡† „› ƒ •—’’Ž‹‡”
Š‡”‡‹•‘ˆ‘”ƒ–’”‡•…”‹„‡†Ǥ‡”–ƒ‹ϐ‹‡Ž†•Š‘™‡˜‡”ƒ”‡ƒ†ƒ–‘”›ƒ†
‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•ǡ–‘ƒ”‡…‹’‹‡–Ǥ
–Š‡›Šƒ˜‡„‡‡•’‡…‹ϐ‹‡†ǤŠ‡‹˜‘‹…‡•…‘—Ž†„‡ƒ—ƒŽ‘”‡Ž‡…–”‘‹…Ǥ – ‹†‡–‹ϐ‹‡• „‘–Š –Š‡ ’ƒ”–‹‡•
‹˜‘Ž˜‡†ǡƒ†Ž‹•–•ƒ††‡•…”‹„‡•
Š‡–‹‡Ž‹‹–ˆ‘”‹••—‹‰–Š‡‹˜‘‹…‡•ƒ”‡‘ˆ‡š–”‡‡‹’‘”–ƒ…‡ƒ•–Šƒ–‹•
–Š‡ ‹–‡• •‘Ž† Ȁ •‡”˜‹…‡•
ƒƒŒ‘”•–‡’‹ϐŽ—‡…‹‰–Š‡†‡–‡”‹ƒ–‹‘‘ˆ–‹‡‘ˆ•—’’Ž›‡…–‹‘͵ͳȋͳȌǣ •—’’Ž‹‡†ǡ “—ƒ–‹ϐ‹‡• –Š‡ǡ
…ƒ•‡‘ˆ”‡‰‹•–‡”‡†’‡”•‘•—’’Ž›‹‰–ƒšƒ„Ž‡‰‘‘†•ǡ–Š‡‹˜‘‹…‡—•–„‡ ‡šŠ‹„‹–• –Š‡ †ƒ–‡•ǡ ’”‹…‡• ƒ†
‡…‡••ƒ”›†‹•…‘—–•Ǥ
‹••—‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ
ȋƒȌ ”‡‘˜ƒŽ‘ˆ‰‘‘†•ˆ‘”•—’’Ž›ǡ™Š‡”‡–Š‡•—’’Ž›‹˜‘Ž˜‡•‘˜‡‡–‘ˆ‰‘‘†•
ȋ„Ȍ ‘”†‡Ž‹˜‡”›‘ˆ‰‘‘†•‘”ƒ‹‰ƒ˜ƒ‹Žƒ„Ž‡–Š‡”‡‘ˆ–‘–Š‡”‡…‹’‹‡–‹ƒ›‘–Š‡”…ƒ•‡Dz‡‘˜ƒŽdzǡ‹”‡Žƒ–‹‘–‘
‰‘‘†•ǡ ‡ƒ• †‹•’ƒ–…Š ‘ˆ –Š‡ ‰‘‘†• ˆ‘” †‡Ž‹˜‡”› „› –Š‡ •—’’Ž‹‡” ‘” …‘ŽŽ‡…–‹‘ ‘ˆ –Š‡ ‰‘‘†• „› –Š‡
”‡…‹’‹‡–Ǥ
”‘˜‹•‘–‘•‡…–‹‘͵ͳȋͳȌǣ‡–”ƒŽȀ–ƒ–‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘‘ˆ–Š‡
‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ
•’‡…‹ˆ›–Š‡…ƒ–‡‰‘”‹‡•‘ˆ‰‘‘†•ƒ†Ȁ‘”•—’’Ž‹‡•‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡–ƒš‹˜‘‹…‡•ŠƒŽŽ„‡‹••—‡†ǡ‡…–‹‘͵ͳȋʹȌ
”‡ƒ†™‹–Š—Ž‡Ͷ͹ƒ†ϐ‹”•–proviso–‘—Ž‡Ͷ͹ƒ†‡…‘†proviso–‘—Ž‡Ͷ͹Ǥ
”‡‰‹•–‡”‡†–ƒšƒ„Ž‡’‡”•‘•—’’Ž›‹‰–ƒšƒ„Ž‡•‡”˜‹…‡••ŠƒŽŽǡ„‡ˆ‘”‡‘”ƒˆ–‡”–Š‡’”‘˜‹•‹‘‘ˆ•‡”˜‹…‡„—–™‹–Š‹ƒ
’”‡•…”‹„‡† ’‡”‹‘†ǡ ‹••—‡ ƒ –ƒš ‹˜‘‹…‡ǡ •Š‘™‹‰ –Š‡ †‡•…”‹’–‹‘ǡ ˜ƒŽ—‡ǡ –Š‡ –ƒš …Šƒ”‰‡† –Š‡”‡‘ǡ ƒ† •—…Š ‘–Š‡”
’ƒ”–‹…—Žƒ”•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ

Time limit for issuing Tax Invoice for services

The‹˜‘‹…‡‹…ƒ•‡‘ˆƒ–ƒšƒ„Ž‡•—’’Ž›‘ˆ•‡”˜‹…‡••ŠƒŽŽ„‡‹••—‡†within a period of thirty daysˆ”‘–Š‡†ƒ–‡‘ˆ
–Š‡•—’’Ž›‘ˆ•‡”˜‹…‡Ǥ
Ȉ „ƒ‹‰…‘’ƒ›‘”ƒϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ‘” ǡ…ƒ‹••—‡ƒ‹˜‘‹…‡™‹–Š‹ˆ‘”–›Ǧϐ‹˜‡†ƒ›•ˆ”‘–Š‡
†ƒ–‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡Ǥ
Ȉ ‹•—”‡”Ȁ„ƒ‹‰…‘’ƒ›Ȁϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ‹…Ž—†‹‰ƒ‘Ǧ„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›Ȁ‡Ž‡…‘
‘’‡”ƒ–‘”ǡ‘”ƒ›‘–Š‡”…Žƒ••‘ˆ•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–making taxable
supplies of services between distinct personsƒ••’‡…‹ˆ‹‡†‹‡…–‹‘ʹͷǡmay issue the invoice before or
at the time recording the same in books of account‘”before the expiry of the quarter†—”‹‰™Š‹…Š–Š‡
•—’’Ž›™ƒ•ƒ†‡Ǥ
Revised Invoice
Explanation–‘•‡…–‹‘͵ͳ
‡…–‹‘͵ͳȋ͵ȌȋƒȌǣŠ‡‡š’”‡••‹‘Dz–ƒš‹˜‘‹…‡dz•ŠƒŽŽ‹…Ž—†‡ƒ›”‡˜‹•‡†‹˜‘‹…‡‹••—‡†„›–Š‡•—’’Ž‹‡”‹”‡•’‡…–‘ˆ
ƒ•—’’Ž›ƒ†‡‡ƒ”Ž‹‡”
x Revised invoice: ”‡‰‹•–‡”‡†–ƒšƒ„Ž‡’‡”•‘ƒ›ǡwithin one month from the date of issuance of a
…‡”–‹ϐ‹…ate of registrationǡ‹••—‡ƒ”‡˜‹•‡†‹˜‘‹…‡against the invoice already issued†—”‹‰–Š‡
’‡”‹‘†„‡‰‹‹‰™‹–Š–Š‡‡ˆˆ‡…–‹˜‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘–‹ŽŽ–Š‡†ƒ–‡‘ˆ‹••—ƒ…‡‘ˆƒ…‡”–‹ˆ‹…ƒ–‡‘ˆ
”‡‰‹•–”ƒ–‹‘–‘Š‹Ǥ
x Š‡”‡…‹’‹‡–…ƒƒ˜ƒ‹Žƒ‰ƒ‹•–•—…Šƒ”‡˜‹•‡†‹˜‘‹…‡‹••—‡†„›–Š‡•—’’Ž‹‡”Ǥ
x Š‡ ’”‘˜‹•‹‘ …‘˜‡”• –Š‡ ’‡”‹‘† „‡–™‡‡ –Š‡ †ƒ–‡ ‘ˆ ƒ’’Ž‹…ƒ–‹‘ ƒ† †ƒ–‡ ‘ˆ ‹••—ƒ…‡ ‘ˆ ”‡‰‹•–”ƒ–‹‘
…‡”–‹ϐ‹…ƒ–‡„—–‘–‡ƒ”Ž‹‡”’‡”‹‘††—”‹‰™Š‹…ŠŠ‡™ƒ•Ž‹ƒ„Ž‡–‘’ƒ›
Ǥ
Tax Invoice for Small Value :

Section 31(3)(b) Tax invoice may not be issued if value goods or services or both is less than Rs 200
 740 Lesson 15 Ȉ EP-TL

Invoice Cum Bill of Supply :

‡…–‹‘͵ͳȋ͵Ȍȋ…Ȍ ”‡‰‹•–‡”‡†’‡”•‘supplying exempted ‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡‘”paying tax as under

Composite scheme…ƒ‹••—‡ƒ•‹‰Ž‡Ǯ‹˜‘‹…‡…—„‹ŽŽ‘ˆ•—’’Ž›ǯ
—Ž‡Ͷ͸
ˆ‘—”–Š’”‘˜‹•‘–‘ Š‹•’”‘˜‹•‹‘ƒŽ•‘ƒ’’Ž‹‡•–‘ƒ’‡”•‘™Š‘‹•’ƒ›‹‰
‘•‡”˜‹…‡•—†‡”ƒ•‹’Ž‹ϐ‹‡†
—Ž‡Ͷ͸ •…Š‡‡ȋ•ƒŽŽ–ƒšƒ„Ž‡’‡”•‘•’ƒ›‹‰
̷͸Ψ‘•‡”˜‹…‡•ȌǤŠ—•ǡsmall taxable persons
paying GST @ 6% on services shall issue ‘Bill of Supply’ and not ‘tax invoice’.
Š‡”‡ƒ”‡‰‹•–‡”‡†’‡”•‘‹•supplying taxable as well as exempted ‰‘‘†•‘”•‡”˜‹…‡•‘”
„‘–Što an unregistered personǡƒ•‹‰Ž‡Dz‹˜‘‹…‡Ǧ…—Ǧ„‹ŽŽ‘ˆ•—’’Ž›dzƒ›„‡‹••—‡†ˆ‘”ƒŽŽ
•—…Š•—’’Ž‹‡•ǤǦ‹•‡”–‡†™Ǥ‡ǤˆǤͳ͵ǦͳͲǦʹͲͳ͹
Consolidated Tax Invoice: ”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‹••—‡ƒ…‘•‘Ž‹†ƒ–‡†–ƒš‹˜‘‹…‡ƒ––Š‡
‡†‘ˆ‡ƒ…Š†ƒ›‹”‡•’‡…–‘ˆ•—’’Ž‹‡•™Š‡”‡ȋƒȌ–Š‡recipient is an unregistered personǢ
ƒ†ȋ„Ȍ–Š‡”‡…‹’‹‡–does not require such invoice.
Receipt Voucher & Refund Voucher

‡…–‹‘͵ͳȋ͵Ȍȋ†Ȍ ”‡‰‹•–‡”‡†–ƒšƒ„Ž‡’‡”•‘•ŠƒŽŽǡ‘”‡…‡‹’–‘ˆƒ†˜ƒ…‡’ƒ›‡–™‹–Š”‡•’‡…––‘ƒ›•—’’Ž›
‘ˆ‰‘‘†•‘”•‡”˜‹…‡•„›Š‹ǡ‹••—‡ƒ”‡…‡‹’–˜‘—…Š‡”ǡ‡˜‹†‡…‹‰”‡…‡‹’–‘ˆ•—…Š’ƒ›‡–
 Contents of Receipt Voucher:-

—Ž‡ͷͲ ȋƒȌƒ‡ǡƒ††”‡••ǡƒ†
‘ˆ–Š‡•—’’Ž‹‡”Ǥȋ„Ȍ…‘•‡…—–‹˜‡•‡”‹ƒŽ—„‡”ȋ…Ȍƒ–‡‘ˆ
‹••—‡‘ˆ”‡…‡‹’–˜‘—…Š‡”ȋ†Ȍƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡”‡…‹’‹‡–ȋ‡Ȍ†‡•…”‹’–‹‘‘ˆ
‰‘‘†•‘”•‡”˜‹…‡•ȋˆȌAmount of advance takenȋ‰Ȍƒ–‡‘ˆ–ƒšȋ
Ȁ
Ȁ
Ȁ
Ȁ
Ȍ‘—–‘ˆ–ƒš…Šƒ”‰‡†‹”‡•’‡…–‘ˆ–ƒšƒ„Ž‡•‡”˜‹…‡•ȋ‹ȌŽƒ…‡‘ˆ•—’’Ž›ƒŽ‘‰™‹–Š–Š‡
ƒ‡‘ˆ–ƒ–‡ƒ†‹–•…‘†‡ǡ‹…ƒ•‡‘ˆƒ–‡”Ǧ–ƒ–‡ȋŒȌŠ‡–Š‡”–Š‡–ƒš‹•’ƒ›ƒ„Ž‡‘”‡˜‡”•‡
…Šƒ”‰‡„ƒ•‹•ȋȌ‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹œ‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
”‘˜‹•‹‘ˆ‘”’ƒ›‡–‘ˆ–ƒš‘ƒ†˜ƒ…‡•”‡…‡‹˜‡†Šƒ•„‡‡†‡Ž‡–‡†vides‘–‹ϐ‹…ƒ–‹‘‘Ǥ
66/2017-CT dated 15-11-2017.Š‹•”‡Žƒšƒ–‹‘‹•‘Ž›‹”‡•’‡…–‘ˆ–Š‡•—’’Ž›‘ˆ‰‘‘†•
ƒ†‘–‹”‡•’‡…–‘ˆ•‡”˜‹…‡•Ǥ
‡…–‹‘͵ͳȋ͵Ȍȋ‡Ȍ ˆ•—„•‡“—‡–Ž›ǡ•—’’Ž›‹•‘–ƒ†‡ƒ†–ƒš‹˜‘‹…‡‘–‹••—‡†ǡrefund voucher•Š‘—Ž†„‡
‹••—‡†ƒ‰ƒ‹•–•—…Š’ƒ›‡–Ǥ

‘–‡–•‘ˆ‡ˆ—†‘—…Š‡”ƒ”‡‹†‡–‹…ƒŽ–‘–Š‡”‡“—‹”‡‡–•‘ˆ‡…‡‹’–‘—…Š‡”‡š…‡’–ˆ‘”

–Šƒ– …”‘••Ǧ”‡ˆ‡”‡…‡ ‘ˆ ‡…‡‹’– ‘—…Š‡” ‹• ”‡“—‹”‡† ƒ† –Š‡ ƒ‘—– ‘ˆ ”‡ˆ—† ‹• –‘ „‡
‹†‹…ƒ–‡†ǡ‹•–‡ƒ†‘ˆ–Š‡ƒ‘—–”‡…‡‹˜‡†ƒ•ƒ†˜ƒ…‡Ǥ
—Ž‡ͷͳ ˆ”‡ˆ—†˜‘—…Š‡”‹•ƒ†‡ǡ‹–•Š‘—Ž†„‡ˆ‘”–Š‡ˆ—ŽŽ˜ƒŽ—‡‘ˆƒ†˜ƒ…‡‹…Ž—†‹‰–Š‡ƒ‘—–‘ˆ

‡Žˆ‹˜‘‹…‡ƒ†’ƒ›‡–˜‘—…Š‡”ˆ‘”–ƒš—†‡”

‡…–‹‘͵ͳȋ͵ȌȋˆȌ  ”‡‰‹•–‡”‡† ’‡”•‘ ™Š‘ ‹• Ž‹ƒ„Ž‡ –‘ ’ƒ› –ƒš —†‡”  ȋ”‡˜‡”•‡ …Šƒ”‰‡ ‡…Šƒ‹•ȌȐ •ŠƒŽŽ
‹••—‡ƒ•‡Žˆ‹˜‘‹…‡‹”‡•’‡…–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•”‡…‡‹˜‡†„›Š‹‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ
‡…‘† proviso ‰‘‘†•‘”•‡”˜‹…‡•from the unregistered supplierǤ
–‘—Ž‡Ͷ͸
…‘•‘Ž‹†ƒ–‡†‘–ŠŽ›‹˜‘‹…‡…ƒ„‡‹••—‡†‹ˆƒ”‡˜‡”•‡…Šƒ”‰‡ƒ’’Ž‹‡•—†‡”•‡…–‹‘ͻȋͶȌ‘ˆ–Š‡
‡…–‹‘͵ͳȋ͵Ȍȋ‰Ȍ 
…–™Š‡”‡–Š‡˜ƒŽ—‡‘ˆ•—…Š•—’’Ž‹‡•‡š…‡‡†••ǤͷǡͲͲͲ‹ƒ†ƒ›ˆ”‘ƒ›‘”ƒŽŽ•—’’Ž‹‡”•
Š‡…‘•‘Ž‹†ƒ–‡†‹˜‘‹…‡is not permissible‹…ƒ•‡–ƒš‹•’ƒ›ƒ„Ž‡—†‡””‡˜‡”•‡…Šƒ”‰‡for
•’‡…‹ϐ‹…•‡”˜‹…‡•ȋ•‡…–‹‘ͻȋ͵Ȍ‘ˆ–Š‡
…–ȌǤ
Payment Voucher:’ƒ›‡–˜‘—…Š‡”‹•”‡“—‹”‡†–‘„‡‹••—‡†ƒ––Š‡–‹‡‘ˆ’ƒ›‡––‘–Š‡
•—’’Ž‹‡”‹”‡•’‡…–‘ˆ•—’’Ž‹‡•™Š‡”‡–ƒš‹•’ƒ›ƒ„Ž‡—†‡””‡˜‡”•‡…Šƒ”‰‡Ǥ

‡…–‹‘͵ͳȋͶȌǣ…ƒ•‡–Š‡”‡‹•ƒ…‘–‹—‘—••—’’Ž›‘ˆ‰‘‘†•ǡƒ†™Š‡”‡•—……‡••‹˜‡–ƒ–‡‡–‘ˆ……‘—–•ȋȌƒ”‡
‹••—‡†‘”™Š‡”‡•—……‡••‹˜‡’ƒ›‡–•ƒ”‡‹˜‘Ž˜‡†ǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ‹••—‡‘ˆ‡ƒ…Š
•—…ŠȀ–Š‡”‡…‡‹’–‘ˆ‡ƒ…Š•—…Š’ƒ›‡–Ǥ
‡ƒ‹‰‘ˆ‘–‹—‘—••—’’Ž›‘ˆ
‘‘†•ǣDz‘–‹—‘—••—’’Ž›‘ˆ‰‘‘†•dz‡ƒ•ƒ•—’’Ž›‘ˆ‰‘‘†•™Š‹…Š‹•’”‘˜‹†‡†
…‘–‹—‘—•Ž›—†‡”ƒ…‘–”ƒ…–ǡ™Š‡–Š‡”‘”‘–„›‡ƒ•‘ˆƒ™‹”‡ǡ…ƒ„Ž‡ǡ’‹’‡Ž‹‡‘”‘–Š‡”…‘†—‹–•ǡƒ†ˆ‘”™Š‹…Š
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 741

the supplier invoices the recipient on a regular or periodic basis ƒ†‹…Ž—†‡•–Š‡•—’’Ž›‘ˆ•—…Š‰‘‘†•ƒ•–Š‡

‘˜‡”‡–ƒ›ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ǡƒ•‹–ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›Ǥ
‡…–‹‘͵ͳȋͷȌǣ…ƒ•‡–Š‡”‡‹•ƒ…‘–‹—‘—••—’’Ž›‘ˆ•‡”˜‹…‡•ǣ
Ȉ Š‡”‡–Š‡due date of payment is ascertainableˆ”‘–Š‡…‘–”ƒ…–ǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†‘‘”
Ȉ „‡ˆ‘”‡•—…Š†—‡†ƒ–‡
Ȉ Š‡”‡–Š‡due date of payment is not ascertainableǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†‘Ȁ„‡ˆ‘”‡”‡…‡‹’–‘ˆ
Ȉ •—…Š’ƒ›‡–„›–Š‡•—’’Ž‹‡”
Ȉ Š‡”‡–Š‡payment is linked to the completion of eventǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†‘Ȁ„‡ˆ‘”‡–Š‡
Ȉ …‘’Ž‡–‹‘‘ˆ–Šƒ–‡˜‡–
‡ƒ‹‰‘ˆDzContinuous supply of servicesdzǣ–‡ƒ•ƒ•—’’Ž›‘ˆ•‡”˜‹…‡•™Š‹…Š‹•’”‘˜‹†‡†ǡ‘”ƒ‰”‡‡†–‘„‡
’”‘˜‹†‡†ǡ …‘–‹—‘—•Ž› ‘” ‘ ƒ ”‡…—””‡– „ƒ•‹•ǡ —†‡” ƒ …‘–”ƒ…–ǡ for a period exceeding three months with
periodic payment obligationsƒ†‹…Ž—†‡•–Š‡•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•ƒ•–Š‡
‘˜‡”‡–ƒ›ǡ•—„Œ‡…––‘•—…Š
…‘†‹–‹‘•ǡƒ•‹–ƒ›ǡ„›‘–‹ˆ‹…ƒ–‹‘ǡ•’‡…‹ˆ›Ǥ
ƒ”Ž‹‡”ƒ…”‡†‹–Ȁ†‡„‹–‘–‡ǡ™Š‹…Š‹•‹••—‡†„›–Š‡”‡‰‹•–‡”‡†’‡”•‘—†‡”•‡…–‹‘͵Ͷǡ™ƒ•”‡“—‹”‡†–‘„‡‹••—‡†
‹˜‘‹…‡Ǧ™‹•‡Ǥ ‘™ ƒ ”‡‰‹•–‡”‡† ’‡”•‘ …ƒ ‹••—‡ ‘‡ ȋ…‘•‘Ž‹†ƒ–‡†Ȍ ‘–‡ ‘” ‘”‡ †‡„‹– ‘–‡•Ȁ …”‡†‹– ‘–‡• ‹
”‡•’‡…–‘ˆ—Ž–‹’Ž‡‹˜‘‹…‡•‹••—‡†‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”™‹–Š‘—–Ž‹‹‰–Š‡•ƒ‡–‘‹†‹˜‹†—ƒŽ‹˜‘‹…‡•ǤŠ‹•—•‡†–‘
…ƒ—•‡ƒ˜‘‹†ƒ„Ž‡…‘’Ž‹ƒ…‡„—”†‡ˆ‘”–ƒš’ƒ›‡”•Ǥ

Illustration 1:
‡‡ƒ•Š‹‡–‡”’”‹•‡•ǡ‘Žƒ–ƒƒ‡•ƒ•—’’Ž›‘ˆ‰‘‘†•–‘Š‹”ƒ‹‡–‡”’”‹•‡•ǡ
Šƒœ‹ƒ„ƒ†ǤŠ‡‰‘‘†•™‡”‡
”‡‘˜‡†ˆ”‘–Š‡ˆƒ…–‘”›ƒ–‘Žƒ–ƒ‘͵”†ƒ›Ǥ‡…‡ǡ–Š‡–ƒš‹˜‘‹…‡—•–„‡‹••—‡†‘‘”„‡ˆ‘”‡͵”†ƒ›Ǥ
Illustration 2:
‘Šƒ–†Ǥƒ‡˜‡–ƒƒ‰‡‡–…‘’ƒ›Šƒ•’”‘˜‹†‡†‹–••‡”˜‹…‡•ˆ‘”ƒ‡˜‡–ƒ–Š‘–‘ ‹Ž‰‡…‹‡•ƒ–
‘Žƒ–ƒǡ‘ͳ•– —‡ǤŠ‡–ƒš‹˜‘‹…‡—•––Š‡”‡ˆ‘”‡„‡‹••—‡†™‹–Š‹͵Ͳ†ƒ›•ǡ–Šƒ–‹•ǡ™‹–Š‹͵Ͳ–Š —‡Ǥ
Illustration 3:
S‡‡ƒ Ƭ ‘Ǥ Šƒ• ‡–‡”‡† ‹–‘ ƒ  ȋ—ƒŽ ƒ‹–‡ƒ…‡ ‘–”ƒ…–Ȍ ™‹–Š ‹” –‡”’”‹•‡• ˆ‘” ‘‡Ǧ›‡ƒ”
‡ˆˆ‡…–‹˜‡ͳ•–‡’–‡„‡”ǡʹͲͳ͹ˆ‘”–Š‡•–ƒ„‹Ž‹•‡”•‹•–ƒŽŽ‡†‹–Š‡ˆƒ…–‘”›Ǥ•’‡”…‘–”ƒ…–ǡ–Š‡‹˜‘‹…‡—•–„‡
‹••—‡†„›ͻ–Š‡’–‡„‡”ǡʹͲͳ͹Ǥ–Š‹•…ƒ•‡ǡ•‹…‡–Š‡”‡‹•ƒ…‘–‹—‘—••—’’Ž›‘ˆ•‡”˜‹…‡•™Š‡”‡–Š‡†—‡†ƒ–‡ ‹•
ƒ•…‡”–ƒ‹ƒ„Ž‡ˆ”‘–Š‡…‘–”ƒ…–ǡ–Š‡–ƒš‹˜‘‹…‡—•–„‡‹••—‡†„‡ˆ‘”‡‘”‘ͻ–Š‡’–‡„‡”ǡʹͲͳ͹Ǥ

Supply of Services ceases before completion

‡…–‹‘͵ͳȋ͸Ȍ  ƒ …ƒ•‡ ™Š‡”‡ –Š‡ •—’’Ž› ‘ˆ •‡”˜‹…‡• …‡ƒ•‡• —†‡” ƒ …‘–”ƒ…– „‡ˆ‘”‡ –Š‡ …‘’Ž‡–‹‘ ‘ˆ –Š‡
•—’’Ž›ǡ–Š‡‹˜‘‹…‡•ŠƒŽŽ„‡‹••—‡†ƒ––Š‡time when the supply ceasesƒ†•—…Š‹˜‘‹…‡•ŠƒŽŽ„‡
issued to the extent of the supply effected before such cessation
Goods sent on approval basis
‡…–‹‘͵ͳȋ͹Ȍ Š‡”‡–Š‡‰‘‘†•„‡‹‰•‡–‘ƒ’’”‘˜ƒŽƒ”‡”‡‘˜‡†„‡ˆ‘”‡–Š‡•—’’Ž›–ƒ‡•’Žƒ…‡ǡ–Š‡‹˜‘‹…‡•ŠƒŽŽ
„‡‹••—‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ•—’’Ž›‘”•‹š‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡‘˜ƒŽǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
Š—•ǡ–Š‡–ƒš‹˜‘‹…‡—•–„‡‹••—‡†™‹–Š‹•‹š‘–Š•ˆ”‘”‡‘˜ƒŽǤ

‘‘†•…ƒ„‡”‡‘˜‡†‘ƒƒ’’”‘˜ƒŽ„ƒ•‹•™‹–Š‹–Š‡–ƒ–‡‘”‘—–•‹†‡–Š‡–ƒ–‡Ǥ‡Ž‹˜‡”›ŠƒŽŽƒ
•Š‘—Ž† „‡ ‹••—‡† ƒ– –Š‡ –‹‡ ‘ˆ ”‡‘˜ƒŽ ‘ˆ ‰‘‘†•Ǥ Ǧ™ƒ› „‹ŽŽ• ™‹ŽŽ ƒŽ•‘ „‡ ‹••—‡† ™Š‡”‡˜‡”
ƒ’’Ž‹…ƒ„Ž‡ǤŠ‡’‡”•‘…ƒ””›‹‰‰‘‘†•ˆ‘”•—…Šƒ•—’’Ž›…ƒ…ƒ””›–Š‡‹˜‘‹…‡„‘‘•‘–Šƒ–Š‡…ƒ
‹••—‡–Š‡‹˜‘‹…‡‘…‡–Š‡•—’’Ž›‹•ˆ”—…–‹ϐ‹‡†ǤȂCBE&C Circular No. 10/10/2017-GST dated
18-10-2017Ǥ Removal of artwork to galleries for subsequent sale ”–‹•–• ”‡‘˜‡• –Š‡‹”
ƒ”–™‘”•–‘˜ƒ”‹‘—•‰ƒŽŽ‡”‹‡•™Š‡”‡–Š‡•‡ƒ”‡‡šŠ‹„‹–‡†ǤŠ‡ƒ”–™‘”••Š‘—Ž†„‡”‡‘˜‡†—†‡”Ǧ
†‡Ž‹˜‡”› …ŠƒŽŽƒ ƒ† ‡Ǧ™ƒ› „‹ŽŽ ȋ™Š‡”‡ ƒ’’Ž‹…ƒ„Ž‡ȌǤ …‡ –Š‡ ƒ”–™‘” ‹• •‘Ž†ǡ –Š‡ –ƒš ‹˜‘‹…‡
•Š‘—Ž†„‡‰‡‡”ƒ–‡†Ǥ
 742 Lesson 15 Ȉ EP-TL

Removal of goods outside India for the exhibition : Š‡”‡‘˜ƒŽ‘ˆ‰‘‘†•‘—– ‘ˆ†‹ƒˆ‘”
‡šŠ‹„‹–‹‘‘”‘ƒ…‘•‹‰‡–„ƒ•‹•ˆ‘”‡š’‘”–’”‘‘–‹‘‹•‡‹–Š‡”Ǯ•—’’Ž›ǯ‘”Ǯ‡š’‘”–ǯǤCBI&C
Circular No. 108/27/2019-GST dated 18.07.2019
‹…‡‹–‹•‘–Ǯ‡š’‘”–ǯǡ‘”„‘†‹•‘–”‡“—‹”‡†Ǥ
‘‘†••Š‘—Ž†„‡•‡–—†‡”‡Ž‹˜‡”›ŠƒŽŽƒǤ
Š‡‡š’‘”–‡”•Š‘—Ž†ƒ‹–ƒ‹’”‘’‡””‡…‘”†•‹–Š‡ˆ‘”‰‹˜‡‹‡š—”‡–‘–Š‡…‹”…—Žƒ”†ƒ–‡†
ͳͺǦ͹ǦʹͲͳͻǤ•ƒ†™Š‡‰‘‘†•ƒ”‡•‘Ž†ǡ–Š‡–ƒš‹˜‘‹…‡•Š‘—Ž†„‡‹••—‡†Ǥˆ‰‘‘†•ƒ”‡‘–„”‘—‰Š–
„ƒ…™‹–Š‹•‹š‘–Š•ǡƒ–ƒš‹˜‘‹…‡•Š‘—Ž†„‡‹••—‡†ƒ†
’ƒ‹†Ǥ
ˆ‰‘‘†•ƒ”‡•‘Ž†™‹–Š‹•‹š‘–Š•ǡ”‡ˆ—†…Žƒ‹—†‡””—Ž‡ͺͻȋͶȌ‘ˆ
ˆ‘”…ƒ„‡ϐ‹Ž‡†
‡˜‡‹ˆ‰‘‘†•™‡”‡…Ž‡ƒ”‡†™‹–Š‘—–„‘†‘”Ǥ

Particulars of a tax invoice [Section 31]

Ȉ ƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡•—’’Ž‹‡”
Ȉ …‘•‡…—–‹˜‡•‡”‹ƒŽ—„‡”‘–‡š…‡‡†‹‰ͳ͸†‹‰‹–•ǡ—‹“—‡ˆ‘”ƒ 
Ȉ ƒ–‡‘ˆ‹••—‡
Ȉ ˆ–Š‡”‡…‹’‹‡–‹•”‡‰‹•–‡”‡†ǡƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡‡…‹’‹‡–
Ȉ ‡•…”‹’–‹‘‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•ƒŽ‘‰™‹–Š‘†‡
Ȉ ƒŽ—‡‘ˆ—’’Ž›ƒˆ–‡”‡ˆˆ‡…–‹‰–Š‡‡…‡••ƒ”›†‹•…‘—–•
Ȉ ƒ–‡‘ˆƒšȋ‹…ŽǤ†‡•…”‹’–‹‘ǡ‹Ǥ‡Ǥǡ
Ȁ
Ȁ
Ȍ
Ȉ ‘—–‘ˆƒš
Ȉ ƒŽ—‡‘ˆ˜‘‹…‡
Ȉ Žƒ…‡‘ˆ—’’Ž›
Ȉ ††”‡••‘ˆ†‡Ž‹˜‡”›™Š‡”‡–Š‡•ƒ‡‹•†‹ˆˆ‡”‡–ˆ”‘’Žƒ…‡‘ˆ•—’’Ž›
Ȉ ‘”™ƒ”†Šƒ”‰‡‘”‡˜‡”•‡Šƒ”‰‡
Ȉ ‹‰ƒ–—”‡‘ˆ•—’’Ž‹‡”Ȁƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡
Ԡѥ
…ƒ•‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†‹–”‹’Ž‹…ƒ–‡ǡ‹Ǥ‡Ǥǡ‘”‹‰‹ƒŽˆ‘””‡…‹’‹‡–ǡ†—’Ž‹…ƒ–‡ˆ‘”–”ƒ•’‘”–‡”
ƒ†–”‹’Ž‹…ƒ–‡ˆ‘”•—’’Ž‹‡”Ǥ
…ƒ•‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•ǡ–Š‡‹˜‘‹…‡—•–„‡‹••—‡†‹†—’Ž‹…ƒ–‡ǡ‹Ǥ‡Ǥǡ‘”‹‰‹ƒŽˆ‘””‡…‹’‹‡–ƒ††—’Ž‹…ƒ–‡ˆ‘”•—’’Ž‹‡”Ǥ
Š‡”‡–Š‡‰‘‘†•„‡‹‰•‡–‘”–ƒ‡‘ƒ’’”‘˜ƒŽˆ‘”•ƒŽ‡‘””‡–—”ƒ”‡”‡‘˜‡†„‡ˆ‘”‡–Š‡•—’’Ž›–ƒ‡•’Žƒ…‡ǡ–Š‡
‹˜‘‹…‡•ŠƒŽŽ„‡‹••—‡†„‡ˆ‘”‡‘”ƒ––Š‡–‹‡‘ˆ•—’’Ž›‘”•‹š‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡‘˜ƒŽǡ™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ
‡”‡ǡDz–ƒš‹˜‘‹…‡dz•ŠƒŽŽ‹…Ž—†‡ƒ›”‡˜‹•‡†‹˜‘‹…‡‹••—‡†„›–Š‡•—’’Ž‹‡”‹”‡•’‡…–‘ˆƒ•—’’Ž›ƒ†‡‡ƒ”Ž‹‡”ǤŠ‡

‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›–Š‡…ƒ–‡‰‘”‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•
‹”‡•’‡…–‘ˆ™Š‹…Šƒ–ƒš‹˜‘‹…‡•ŠƒŽŽ„‡‹••—‡†‘”ƒ›‘–Š‡”†‘…—‡–‹••—‡†‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›•ŠƒŽŽ„‡
†‡‡‡†–‘„‡ƒ–ƒš‹˜‘‹…‡Ǥ
Exceptions
–—•–„‡‘–‡†–Šƒ–‘–ƒš‹˜‘‹…‡‹•–‘„‡‹••—‡†™Š‡ǣ
Š‡˜ƒŽ—‡‘ˆ•—’’Ž›‹•Ž‡•• –Šƒ•ǤʹͲͲǢ
‡…‹’‹‡–‹•—”‡‰‹•–‡”‡†Ǣƒ†

‡…‹’‹‡–†‘‡•ǯ–”‡“—‹”‡ƒ‹˜‘‹…‡Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 743

•–‡ƒ†•—…Š”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‹••—‡–Š‡…‘•‘Ž‹†ƒ–‡†–ƒš‹˜‘‹…‡ˆ‘”•—…Š•—’’Ž‹‡•ƒ––Š‡…Ž‘•‡‘ˆ‡ƒ…Š†ƒ›ˆ‘”
ƒŽŽ•—…Š•—’’Ž‹‡•Ǥ…ƒ•‡–Š‡”‡‰‹•–‡”‡†’‡”•‘‹•ƒ‹‰‡š‡’–‡†•—’’Ž‹‡•ǡ‘”Š‡‹•”‡‰‹•–‡”‡†—†‡” …‘’‘•‹–‹‘
Ž‡˜›ǡŠ‡…ƒ‘–‹••—‡ƒ–ƒš‹˜‘‹…‡‹™Š‹…Š…ƒ•‡ǡŠ‡™‹ŽŽ‹••—‡ƒ„‹ŽŽ‘ˆ•—’’Ž›Ǥ
‡˜‡”•‡Šƒ”‰‡‡…Šƒ‹•
”‡‰‹•–‡”‡†’‡”•‘ǡ™Š‘‹•Ž‹ƒ„Ž‡–‘’ƒ›–ƒš—†‡”–Š‡‡˜‡”•‡Šƒ”‰‡‡…Šƒ‹•ǡ•ŠƒŽŽ‹••—‡ƒ‹˜‘‹…‡‹”‡•’‡…–
‘ˆ–Š‡‰‘‘†•Ȁ•‡”˜‹…‡••‘”‡…‡‹˜‡†„›Š‹ˆ”‘–Š‡•—’’Ž‹‡”ǡ™Š‘‹•‘–”‡‰‹•–‡”‡†‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆ‰‘‘†•Ȁ
•‡”˜‹…‡•Ȁ„‘–Šǡƒ†Š‡•ŠƒŽŽ‹••—‡ƒ’ƒ›‡–˜‘—…Š‡”ƒ––Š‡–‹‡‘ˆƒ‹‰’ƒ›‡––‘•—…Š•—’’Ž‹‡”Ǥ
Ž–Š‘—‰ŠƒŽŽ
–ƒš’ƒ›‡”•ƒ”‡ˆ”‡‡–‘†‡•‹‰–Š‡‹”‘™‹˜‘‹…‡ˆ‘”ƒ–ǡ‹–‹•”‡“—‹”‡†–Šƒ–…‡”–ƒ‹ϐ‹‡Ž†•ƒ•‡–‹‘‡†
‹–Š‡‹˜‘‹…‡”—Ž‡„‡‹…‘”’‘”ƒ–‡†‹ƒŽŽ‹˜‘‹…‡•Ǥ†”ƒˆ––‡’Žƒ–‡‘ˆ‹˜‘‹…‡ȋ
ǦͳȌ—†‡”
‹•‰‹˜‡„‡Ž‘™ǣ
 744 Lesson 15 Ȉ EP-TL

Receipt Voucher
Š‡ƒƒ†˜ƒ…‡’ƒ›‡–‹•”‡…‡‹˜‡†™‹–Š”‡•’‡…––‘ƒ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡƒ”‡…‡‹’–˜‘—…Š‡”‹•
”‡“—‹”‡†–‘„‡‹••—‡†„›–Š‡”‡‰‹•–‡”‡†’‡”•‘Ǥ —”–Š‡”ǡ‹ˆ‘•—’’Ž›‹•ƒ†‡ƒ†‘–ƒš‹˜‘‹…‡‹•‹••—‡†ƒˆ–‡”–Š‡
‹••—‡‘ˆ”‡…‡‹’–˜‘—…Š‡”ǡ–Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘ƒ›‹••—‡–‘–Š‡’‡”•‘™Š‘Šƒ†ƒ†‡–Š‡’ƒ›‡–ǡƒ”‡ˆ—†
˜‘—…Š‡”ƒ‰ƒ‹•–•—…Š’ƒ›‡–Ǥ

Credit / Debit Notes

†‡”‡…–‹‘ʹȋ͵͹Ȍ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ǡDz…”‡†‹–‘–‡dz‡ƒ•ƒ
†‘…—‡–‹••—‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘͵ͶǤŠ‡…”‡†‹–
‘–‡‹•ƒ…‘˜‡‹‡–ƒ†Ž‡‰ƒŽ‡–Š‘†„›™Š‹…Š–Š‡˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•‘”•‡”˜‹…‡•‹–Š‡
‘”‹‰‹ƒŽ–ƒš‹˜‘‹…‡…ƒ„‡ƒ‡†‡†‘””‡˜‹•‡†ǤŠ‡‹••—ƒ…‡‘ˆ–Š‡…”‡†‹–‘–‡™‹ŽŽ‡ƒ•‹Ž›
ƒŽŽ‘™–Š‡•—’’Ž‹‡”–‘†‡…”‡ƒ•‡Š‹•–ƒšŽ‹ƒ„‹Ž‹–›‹Š‹•”‡–—”•™‹–Š‘—–”‡“—‹”‹‰Š‹–‘
—†‡”–ƒ‡ƒ›–‡†‹‘—•’”‘…‡••‘ˆ”‡ˆ—†•Ǥ
†‡” ‡…–‹‘ ʹȋ͵ͺȌ ‘ˆ ‡–”ƒŽ
‘‘†• Ƭ ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹ǡ Dz†‡„‹– ‘–‡dz ‡ƒ• ƒ
†‘…—‡–‹••—‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͶǤŠ‡†‡„‹–
‘–‡‘”ƒ•—’’Ž‡‡–ƒ”›‹˜‘‹…‡‹•ƒ…‘˜‡‹‡–ƒ†Ž‡‰ƒŽ‡–Š‘†„›™Š‹…Š–Š‡˜ƒŽ—‡‘ˆ
–Š‡‰‘‘†•‘”•‡”˜‹…‡•‹–Š‡‘”‹‰‹ƒŽ–ƒš‹˜‘‹…‡…ƒ„‡‡Šƒ…‡†ǤŠ‡‹••—ƒ…‡‘ˆ–Š‡
†‡„‹–‘–‡™‹ŽŽ‡ƒ•‹Ž›ƒŽŽ‘™–Š‡•—’’Ž‹‡”–‘’ƒ›Š‹•‡Šƒ…‡†–ƒšŽ‹ƒ„‹Ž‹–›‹Š‹•”‡–—”•
™‹–Š‘—–”‡“—‹”‹‰Š‹–‘—†‡”–ƒ‡ƒ›‘–Š‡”–‡†‹‘—•’”‘…‡••Ǥ

Š‡”‡ƒ–ƒš‹˜‘‹…‡Šƒ•„‡‡‹••—‡†ˆ‘”•—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡƒ†™Š‡”‡–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‹–Š‡‹˜‘‹…‡
‹•‰”‡ƒ–‡”–Šƒ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ•—’’Ž›Ǣ–Š‡–ƒš…Šƒ”‰‡†’‡”‹˜‘‹…‡‹•‰”‡ƒ–‡”–Šƒ–Š‡–ƒš’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ
•—…Š•—’’Ž›Ǣ™Š‡”‡–Š‡‰‘‘†••‘•—’’Ž‹‡†Šƒ˜‡„‡‡”‡–—”‡†„›–Š‡”‡…‹’‹‡–™Š‡”‡–Š‡‰‘‘†•Ȁ•‡”˜‹…‡•
Šƒ˜‡„‡‡ˆ‘—†–‘„‡†‡ϐ‹…‹–‹–Š‡•‡…ƒ•‡•ǡ–Š‡”‡‰‹•–‡”‡†•—’’Ž‹‡”ƒ›‹••—‡ƒ…”‡†‹–‘–‡–‘–Š‡”‡…‹’‹‡–Ǥ
Š‡”‡ƒ–ƒš‹˜‘‹…‡Šƒ•„‡‡‹••—‡†ˆ‘”•—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡƒ†™Š‡”‡–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‹–Š‡‹˜‘‹…‡
‹•Ž‡••–Šƒ–Š‡–ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ•—’’Ž›Ǣ–Š‡–ƒš…Šƒ”‰‡†’‡”‹˜‘‹…‡‹•Ž‡••–Šƒ–Š‡–ƒš’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ•—…Š
•—’’Ž›Ǣ–Š‡”‡‰‹•–‡”‡†•—’’Ž‹‡”ƒ›‹••—‡ƒ†‡„‹–‘–‡–‘–Š‡”‡…‹’‹‡–Ǥ

Declaration
›”‡‰‹•–‡”‡†’‡”•‘™Š‘Šƒ•‹••—‡†ƒ…”‡†‹–‘–‡ǡ‹”‡Žƒ–‹‘–‘•—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡ—•–†‡…Žƒ”‡–Š‡
†‡–ƒ‹Ž•‘ˆ•—…Š…”‡†‹–‘–‡ǡ‹–Š‡”‡–—”ˆ‘”–Š‡‘–Š†—”‹‰™Š‹…Š•—…Š…”‡†‹–‘–‡™ƒ•‹••—‡†ǡ„—–‘–Žƒ–‡”–Šƒǣ
ȋƒȌ ‡’–‡„‡”ˆ‘ŽŽ‘™‹‰–Š‡‡†‘ˆ ‹ƒ…‹ƒŽ‡ƒ”‹™Š‹…Š–Š‡•—’’Ž›™ƒ•ƒ†‡
ȋƒȌ ƒ–‡‘ˆˆ—”‹•Š‹‰–Š‡”‡Ž‡˜ƒ–ƒ—ƒŽ”‡–—”™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”Ǥ

‘”‡†—…–‹‘‹–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ–Š‡•—’’Ž‹‡”•ŠƒŽŽ„‡’‡”‹––‡†ǡ‹ˆ–Š‡‹…‹†‡…‡‘ˆ–ƒš‘•—…Š•—’’Ž›Šƒ•„‡‡’ƒ••‡†
‘–‘ƒ›‘–Š‡”’‡”•‘Ǥ
›”‡‰‹•–‡”‡†’‡”•‘™Š‘Šƒ•‹••—‡†ƒ†‡„‹–‘–‡ǡ‹”‡Žƒ–‹‘–‘•—’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡ—•–†‡…Žƒ”‡–Š‡
†‡–ƒ‹Ž•‘ˆ•—…Š†‡„‹–‘–‡ǡ‹–Š‡”‡–—”ˆ‘”–Š‡‘–Š†—”‹‰™Š‹…Š•—…Š†‡„‹–‘–‡™ƒ•‹••—‡†ǤŠ‡–ƒšŽ‹ƒ„‹Ž‹–›…ƒ
„‡ƒ†Œ—•–‡†—’™ƒ”†•ƒ’’”‘’”‹ƒ–‡Ž›Ǥ

RULES FOR TAX INVOICES, DEBIT & CREDIT NOTES

Šƒ’–‡”…‘–ƒ‹•”—Ž‡•ˆ‘”–ƒš‹˜‘‹…‡•†‡„‹–Ƭ…”‡†‹–‘–‡•Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 745

Tax Invoice [Rule 46]

ƒš‹˜‘‹…‡
[Rule 46]
ƒš˜‘‹…‡
˜‘‹…‡Ǧ
‹•’‡…‹ƒŽ
…—Ǧ„‹ŽŽ
…ƒ•‡•
‘ˆ•—’’Ž›
[Rule54]
[Rule 46A]

‡˜‹•‡†–ƒš
‹˜‘‹…‡ƒ† ‹‡Ž‹‹–
…”‡†‹–‘” ˆ‘”‹••—‹‰
†‡„‹–‘–‡• –ƒš‹˜‘‹…‡
[Rule53] [Rule47]
Rules for Tax
Invoices,
Debit
& Credit Notes

ƒ‡”
ƒ›‡–
‘ˆ‹••—‹‰
˜‘—…Š‡”
‹˜‘‹…‡
[Rule 52]
[Rule 48]

‡ˆ—† ‹ŽŽ‘ˆ
˜‘—…Š‡” •—’’Ž›
[Rule 51] [Rule 49]
‡…‡‹’–
˜‘—…Š‡”
[Rule50]

—„Œ‡…––‘”—Ž‡ͷͶǡƒ–ƒš‹˜‘‹…‡”‡ˆ‡””‡†–‘‹•‡…–‹‘͵ͳ•ŠƒŽŽ„‡‹••—‡†„›–Š‡”‡‰‹•–‡”‡†’‡”•‘…‘–ƒ‹‹‰–Š‡ ˆ‘Ž-
Ž‘™‹‰’ƒ”–‹…—Žƒ”•ǣǦ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡•—’’Ž‹‡”Ǣ
ȋ„Ȍ a …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡”ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ …‘–ƒ‹‹‰ ƒŽ’Šƒ„‡–• ‘” —‡”ƒŽ• ‘” •’‡…‹ƒŽ
…Šƒ”ƒ…–‡”•Š›’Š‡ ‘”†ƒ•Š ƒ† •Žƒ•Š•›„‘Ž‹•‡† ƒ•DzǦdz ƒ† DzȀdz ”‡•’‡…–‹˜‡Ž›ǡ ƒ†ƒ› …‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ
—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ…Ȍ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
ȋ†Ȍ ƒ‡ǡƒ††”‡••ƒ†
‘”ǡ‹ˆ”‡‰‹•–‡”‡†ǡ‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋ‡Ȍ ƒ‡ƒ†ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–ƒ†–Š‡ƒ††”‡••‘ˆ†‡Ž‹˜‡”›ǡƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–ƒ–‡ƒ†‹–• …‘†‡ǡ‹ˆ
•—…Š”‡…‹’‹‡–‹•—Ǧ”‡‰‹•–‡”‡†ƒ†™Š‡”‡–Š‡˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•—’’Ž›‹•ϐ‹ˆ–›–Š‘—•ƒ†”—’‡‡•‘”‘”‡Ǣ
ȋˆȌ ƒ‡ƒ†ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–ƒ†–Š‡ƒ††”‡••‘ˆ†‡Ž‹˜‡”›ǡƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–Š‡–ƒ–‡ƒ† ‹–•…‘†‡ǡ
‹ˆ •—…Š ”‡…‹’‹‡– ‹• —Ǧ”‡‰‹•–‡”‡† ƒ† ™Š‡”‡ –Š‡ ˜ƒŽ—‡ ‘ˆ –Š‡ –ƒšƒ„Ž‡ •—’’Ž› ‹• Ž‡•• –Šƒ ϐ‹ˆ–› –Š‘—•ƒ†
”—’‡‡•ƒ†–Š‡”‡…‹’‹‡–”‡“—‡•–•–Šƒ–•—…Š†‡–ƒ‹Ž•„‡”‡…‘”†‡†‹–Š‡–ƒš‹˜‘‹…‡Ǣ
ȋ‰Ȍ …‘†‡‘ˆ‰‘‘†•‘”……‘—–‹‰‘†‡‘ˆ•‡”˜‹…‡•Ǣ
ȋŠȌ †‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǣ
ȋ‹Ȍ “—ƒ–‹–›‹…ƒ•‡‘ˆ‰‘‘†•ƒ†—‹–‘”‹“—‡—ƒ–‹–›‘†‡–Š‡”‡‘ˆǢ
 746 Lesson 15 Ȉ EP-TL

ȋŒȌ –‘–ƒŽ˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
ȋȌ –ƒšƒ„Ž‡˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–ƒ‹‰‹–‘ƒ……‘—–†‹•…‘—–‘”ƒ„ƒ–‡‡–ǡ‹ˆƒ›Ǣ
ȋŽȌ ”ƒ–‡‘ˆ–ƒšȋ‡–”ƒŽƒšǡ–ƒ–‡ƒšǡ–‡‰”ƒ–‡†ƒšǡ‹‘–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋȌ ƒ‘—–‘ˆ–ƒš…Šƒ”‰‡†‹”‡•’‡…–‘ˆ–ƒšƒ„Ž‡‰‘‘†•‘”•‡”˜‹…‡•ȋ‡–”ƒŽƒšǡ–ƒ–‡ƒšǡ–‡‰”ƒ–‡†ƒšǡ ‹‘
–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋȌ ’Žƒ…‡‘ˆ•—’’Ž›ƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–ƒ–‡ǡ‹…ƒ•‡‘ˆƒ•—’’Ž›‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡–”ƒ†‡‘”…‘‡”…‡Ǣ
ȋ‘Ȍ ƒ††”‡••‘ˆ†‡Ž‹˜‡”›™Š‡”‡–Š‡•ƒ‡‹•†‹ˆˆ‡”‡–ˆ”‘–Š‡’Žƒ…‡‘ˆ•—’’Ž›Ǣ
ȋ’Ȍ ™Š‡–Š‡”–Š‡–ƒš‹•’ƒ›ƒ„Ž‡‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǣƒ†
ȋ“Ȍ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹œ‡†”‡’”‡•‡–ƒ–‹˜‡ǣ
ȋ”Ȍ —‹… ‡•’‘•‡ …‘†‡ǡ Šƒ˜‹‰ ‡„‡††‡† ˜‘‹…‡ ‡ˆ‡”‡…‡ —„‡” ȋȌ ‹ ‹–ǡ ‹ …ƒ•‡ ‹˜‘‹…‡ Šƒ• „‡‡
‹••—‡†‹–Š‡ƒ‡”’”‡•…”‹„‡†—†‡”•—„Ǧ”—Ž‡ȋͶȌ‘ˆ”—Ž‡ͶͺǤ

”‘˜‹†‡†–Šƒ––Š‡‘ƒ”†ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›Ǧ
ȋ‹Ȍ –Š‡—„‡”‘ˆ†‹‰‹–•‘ˆ…‘†‡ˆ‘”‰‘‘†•‘”–Š‡……‘—–‹‰‘†‡ˆ‘”•‡”˜‹…‡•ǡ–Šƒ–ƒ…Žƒ••‘ˆ”‡‰‹•–‡”‡†
’‡”•‘••ŠƒŽŽ„‡”‡“—‹”‡†–‘‡–‹‘ǡˆ‘”•—…Š’‡”‹‘†ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡•ƒ‹†‘–‹ϐ‹…ƒ–‹‘ǡƒ†
ȋ‹‹Ȍ ƒ …Žƒ•• ‘ˆ •—’’Ž› ‘ˆ ‰‘‘†• ‘” •‡”˜‹…‡• ˆ‘” ™Š‹…Š •’‡…‹ϐ‹‡† —„‡” ‘ˆ †‹‰‹–• ‘ˆ ƒ”‘‹•‡† ›•–‡ ‘ˆ
‘‡…Žƒ–—”‡…‘†‡•ŠƒŽŽ„‡”‡“—‹”‡†–‘„‡‡–‹‘‡†„›ƒŽŽ”‡‰‹•–‡”‡†–ƒš’ƒ›‡”•Ǣƒ†
ȋ‹‹‹Ȍ –Š‡…Žƒ••‘ˆ”‡‰‹•–‡”‡†’‡”•‘•–Šƒ–™‘—Ž†‘–„‡”‡“—‹”‡†–‘‡–‹‘–Š‡…‘†‡ˆ‘”‰‘‘†•‘”–Š‡……‘—–‹‰
‘†‡ˆ‘”•‡”˜‹…‡•ǡˆ‘”•—…Š’‡”‹‘†ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡•ƒ‹†‘–‹ϐ‹…ƒ–‹‘
 ˜‹‡™‘ˆ–Š‡ƒ„‘˜‡’‘™‡”•ˆ‘ŽŽ‘™‹‰Šƒ•„‡‡‘–‹ϐ‹‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘ǤʹͲͳ͹†ƒ–‡†ʹͺǤͲ͸ǤʹͲͳ͹ƒ•
ƒ‡†‡†ǣ
‘•‹–‹‘™Ǥ‡ǤˆǤͲͳǤͲͶǤʹͲʹͳǣ
Ǥ‘Ǥ —ƒŽ–—”‘˜‡”‹’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ” —„‡”‘ˆ†‹‰‹–•‘ˆ‘†‡

ͳǤ δα•Ǥͷ”‘”‡• ‘”ʹ•—’’Ž›ǦͶ

‘”ʹ•—’’Ž›ǦͶȋ‘’–‹‘ƒŽȌ
ʹǤ εͷ…”‘”‡• ‘”ʹƒ†ʹ•—’’Ž›Ǧ͸

”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡ƒ‹˜‘‹…‡‹•”‡“—‹”‡†–‘„‡‹••—‡†—†‡”…Žƒ—•‡ȋˆȌ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ ͵ͳǡ
ƒ”‡‰‹•–‡”‡†’‡”•‘ƒ›‹••—‡ƒ…‘•‘Ž‹†ƒ–‡†‹˜‘‹…‡ƒ––Š‡‡†‘ˆƒ‘–Šˆ‘”•—’’Ž‹‡•…‘˜‡”‡†—†‡”•—„•‡…–‹‘
ȋͶȌ‘ˆ•‡…–‹‘ͻǡ–Š‡ƒ‰‰”‡‰ƒ–‡˜ƒŽ—‡‘ˆ•—…Š•—’’Ž‹‡•‡š…‡‡†•”—’‡‡•ϐ‹˜‡–Š‘—•ƒ†‹ƒ†ƒ›ˆ”‘ƒ›‘”ƒŽŽ–Š‡•—’’Ž‹‡”•ǣ

”‘˜‹†‡†ƒŽ•‘–Šƒ–‹–Š‡…ƒ•‡‘ˆ–Š‡‡š’‘”–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ǡ–Š‡‹˜‘‹…‡•ŠƒŽŽ…ƒ””›ƒ‡†‘”•‡‡–ȂDz—’’Ž› ‡ƒ–
ˆ‘”‡š’‘”–Ȁ•—’’Ž›–‘—‹–‘”†‡˜‡Ž‘’‡”ˆ‘”ƒ—–Š‘”‹•‡†‘’‡”ƒ–‹‘•‘ ’ƒ›‡–‘ˆ ‹–‡‰”ƒ–‡†–ƒšdz ‘” Ȃ Dz—’’Ž›
‡ƒ–ˆ‘”‡š’‘”–Ȁ•—’’Ž›–‘—‹–‘” †‡˜‡Ž‘’‡”ˆ‘”ƒ—–Š‘”‹•‡†‘’‡”ƒ–‹‘•—†‡”„‘†‘”Ž‡––‡”‘ˆ—†‡”–ƒ‹‰
™‹–Š‘—–’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšdzǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ†•ŠƒŽŽǡ‹Ž‹‡—‘ˆ–Š‡†‡–ƒ‹Ž••’‡…‹ϐ‹‡†‹…Žƒ—•‡ȋ‡Ȍǡ…‘–ƒ‹
–Š‡ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ǡƒ‡Ž›ǡȂȋ‹Ȍƒ‡ƒ†ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–Ǣȋ‹‹Ȍƒ††”‡••‘ˆ†‡Ž‹˜‡”›Ǣƒ†ȋ‹‹‹Ȍƒ‡‘ˆ–Š‡
…‘—–”›‘ˆ†‡•–‹ƒ–‹‘ǣ

”‘˜‹†‡†ƒŽ•‘–Šƒ–ƒ”‡‰‹•–‡”‡†’‡”•‘ƒ›‘–‹••—‡ƒ–ƒš‹˜‘‹…‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ…Žƒ—•‡‘ˆ
•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳ•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǡƒ‡Ž›ǣǦ
ȋƒȌ –Š‡”‡…‹’‹‡–‹•‘–ƒ”‡‰‹•–‡”‡†’‡”•‘Ǣƒ†
ȋ„Ȍ –Š‡”‡…‹’‹‡–†‘‡•‘–”‡“—‹”‡•—…Š‹˜‘‹…‡ǡƒ†
•ŠƒŽŽ‹••—‡ƒ…‘•‘Ž‹†ƒ–‡†–ƒš‹˜‘‹…‡ˆ‘”•—…Š•—’’Ž‹‡•ƒ––Š‡…Ž‘•‡‘ˆ‡ƒ…Š†ƒ›‹”‡•’‡…–‘ˆƒŽŽ•—…Š•—’’Ž‹‡•Ǥ
”‘˜‹†‡†ƒŽ•‘–Šƒ––Š‡•‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡•ŠƒŽŽ‘–„‡
”‡“—‹”‡† ‹ –Š‡ …ƒ•‡ ‘ˆ ‹••—ƒ…‡ ‘ˆ ƒ ‡Ž‡…–”‘‹… ‹˜‘‹…‡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡ ˆ‘”ƒ–‹‘
‡…Š‘Ž‘‰›…–ǡʹͲͲͲȋʹͳ‘ˆʹͲͲͲȌǤ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 747

”‘˜‹†‡†ƒŽ•‘–Šƒ––Š‡
‘˜‡”‡–ƒ›ǡ„›‘–‹ˆ‹…ƒ–‹‘ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡƒ†•—„Œ‡…––‘
•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•‡–‹‘‡†–Š‡”‡‹ǡ•’‡…‹ˆ›–Šƒ––Š‡„‹ŽŽ‘ˆ•—’’Ž›•ŠƒŽŽŠƒ˜‡—‹…‡•’‘•‡
ȋȌ…‘†‡Ǥ

‹†‡ ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ ͹ʹȀʹͲͳͻ ȋǤǤȌ †ƒ–‡† ͳ͵ǤͳʹǤʹͲͳͻǡ ™Š‹…Š …ƒ‡ ‹–‘ ‡ˆˆ‡…– ‘ ͳǤͶǤʹͲʹͲǡ ‹– Šƒ• „‡‡
‘–‹ϐ‹‡† –Šƒ– ƒ ‹˜‘‹…‡ ‹••—‡† „› ƒ ”‡‰‹•–‡”‡† ’‡”•‘ǡ ™Š‘•‡ ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” ‹ ƒ ϐ‹ƒ…‹ƒŽ ›‡ƒ”‡š…‡‡†•
ϐ‹˜‡Š—†”‡†…”‘”‡”—’‡‡•ǡ–‘ƒ—”‡‰‹•–‡”‡†’‡”•‘ȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘ƒ•ʹ‹˜‘‹…‡Ȍǡ•ŠƒŽŽŠƒ˜‡—‹…
‡•’‘•‡ȋȌ…‘†‡Ǥ–Šƒ•ˆ—”–Š‡”‘–‹ϐ‹‡†–Šƒ–™Š‡”‡•—…Š”‡‰‹•–‡”‡†’‡”•‘ƒ‡•ƒ›ƒ‹…—‹…‡•’‘•‡
ȋȌ…‘†‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡”‡…‹’‹‡––Š”‘—‰Šƒ†‹‰‹–ƒŽ†‹•’Žƒ›ǡ•—…Šʹ‹˜‘‹…‡‹••—‡†„› •—…Š”‡‰‹•–‡”‡†’‡”•‘
…‘–ƒ‹‹‰…”‘••Ǧ”‡ˆ‡”‡…‡‘ˆ–Š‡’ƒ›‡–—•‹‰ƒ›ƒ‹…—‹…‡•’‘•‡ȋȌ …‘†‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡
Šƒ˜‹‰—‹…‡•’‘•‡ȋȌ…‘†‡Ǥ

Invoice-cum-bill of supply [Rule 46A]

‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹”—Ž‡Ͷ͸‘””—Ž‡Ͷͻ‘””—Ž‡ͷͶǡ™Š‡”‡ƒ”‡‰‹•–‡”‡†’‡”•‘‹••—’’Ž›‹‰–ƒšƒ„Ž‡
ƒ•™‡ŽŽƒ•‡š‡’–‡†‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–‘ƒ—”‡‰‹•–‡”‡†’‡”•‘ǡƒ•‹‰Ž‡Dz‹˜‘‹…‡Ǧ…—Ǧ„‹ŽŽ‘ˆ•—’’Ž›dzƒ›
„‡‹••—‡†ˆ‘”ƒŽŽ•—…Š•—’’Ž‹‡•Ǥ
Time limit for issuing tax invoice [Rule 47]
Š‡‹˜‘‹…‡”‡ˆ‡””‡†–‘‹”—Ž‡Ͷ͸ǡ‹…ƒ•‡‘ˆ–ƒšƒ„Ž‡•—’’Ž›‘ˆ•‡”˜‹…‡•ǡ•ŠƒŽŽ„‡‹••—‡†™‹–Š‹ƒ’‡”‹‘†‘ˆ–Š‹”–› †ƒ›•
ˆ”‘–Š‡†ƒ–‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•‹•ƒ‹•—”‡”‘”ƒ„ƒ‹‰…‘’ƒ›‘”ƒϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ‹…Ž—†‹‰
ƒ ‘Ǧ„ƒ‹‰ ϐ‹ƒ…‹ƒŽ …‘’ƒ›ǡ –Š‡ ’‡”‹‘† ™‹–Š‹ ™Š‹…Š –Š‡ ‹˜‘‹…‡ ‘” ƒ› †‘…—‡– ‹ Ž‹‡— –Š‡”‡‘ˆ ‹• –‘ „‡
‹••—‡†•ŠƒŽŽ„‡ˆ‘”–›ϐ‹˜‡†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡Ǥ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–™Š‡”‡–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•‹•ƒ‹•—”‡”‘”ƒ„ƒ‹‰…‘’ƒ›‘”ƒϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ
‹…Ž—†‹‰ƒ‘Ǧ„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›ǡ‘”ƒ–‡Ž‡…‘‘’‡”ƒ–‘”ǡ‘”ƒ›‘–Š‡”…Žƒ••‘ˆ•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•ƒ•ƒ›
„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡƒ‹‰–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ•‡”˜‹…‡•„‡–™‡‡
†‹•–‹…–’‡”•‘•ƒ••’‡…‹ϐ‹‡†‹•‡…–‹‘ʹͷǡƒ›‹••—‡–Š‡‹˜‘‹…‡„‡ˆ‘”‡‘”ƒ––Š‡–‹‡•—…Š•—’’Ž‹‡””‡…‘”†•–Š‡
•ƒ‡‹Š‹•„‘‘•‘ˆƒ……‘—–‘”„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–Š‡“—ƒ”–‡”†—”‹‰™Š‹…Š–Š‡•—’’Ž›™ƒ•ƒ†‡Ǥ

ƒ‡”‘ˆ‹••—‹‰‹˜‘‹…‡ȏ—Ž‡ͶͺȐ
ȋͳȌ Š‡‹˜‘‹…‡•ŠƒŽŽ„‡’”‡’ƒ”‡†‹–”‹’Ž‹…ƒ–‡ǡ‹…ƒ•‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ǡ‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣȂ
ȋƒȌ –Š‡ ‘”‹‰‹ƒŽ …‘’› „‡‹‰ ƒ”‡† ƒ• ”‹‰‹ƒŽ ˆ‘” ‡…‹’‹‡–Ǣ ȋ„Ȍ –Š‡ †—’Ž‹…ƒ–‡ …‘’› „‡‹‰ ƒ”‡† ƒ•
—’Ž‹…ƒ–‡ˆ‘””ƒ•’‘”–‡”Ǣƒ†ȋ…Ȍ–Š‡–”‹’Ž‹…ƒ–‡…‘’›„‡‹‰ƒ”‡†ƒ•”‹’Ž‹…ƒ–‡ˆ‘”—’’Ž‹‡”Ǥ
ȋʹȌ Š‡‹˜‘‹…‡•ŠƒŽŽ„‡’”‡’ƒ”‡†‹†—’Ž‹…ƒ–‡ǡ‹…ƒ•‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡•ǡ‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣǦ
ȋƒȌ –Š‡‘”‹‰‹ƒŽ…‘’›„‡‹‰ƒ”‡†ƒ•”‹‰‹ƒŽˆ‘”‡…‹’‹‡–Ǣƒ†ȋ„Ȍ–Š‡†—’Ž‹…ƒ–‡…‘’›„‡‹‰ƒ”‡†ƒ•
—’Ž‹…ƒ–‡ˆ‘”—’’Ž‹‡”Ǥ
ȋ͵Ȍ Š‡ •‡”‹ƒŽ —„‡” ‘ˆ ‹˜‘‹…‡• ‹••—‡† †—”‹‰ ƒ –ƒš ’‡”‹‘† •ŠƒŽŽ „‡ ˆ—”‹•Š‡† ‡Ž‡…–”‘‹…ƒŽŽ› –Š”‘—‰Š –Š‡
‘‘‘”–ƒŽ‹ 
ǦͳǤ
E Invoicing
EŽ‡…–”‘‹… ‹˜‘‹…‹‰ ‹• ƒ •›•–‡ ‹
Ȃ‹˜‘‹…‹‰‡ƒ••—„‹––‹‰‘”—’Ž‘ƒ†‹‰‘ˆȀƒ……‘—–‹‰•‘ˆ–™ƒ”‡ ™Š‹…Š ƒŽŽ —•‹‡•• –‘ —•‹‡••
‰‡‡”ƒ–‡† ‹˜‘‹…‡ ‹–‘ ˜‘‹…‡ ‡‰‹•–”ƒ–‹‘ ‘”–ƒŽ ȋȌ ˆ‘” ‡Ž‡…–”‘‹… ‹˜‘‹…‡• ƒ”‡ ‡Ž‡…–”‘‹…ƒŽŽ› —’Ž‘ƒ†‡†
ƒ—–Š‡–‹…ƒ–‹‘Ǥ–‹•ƒ’”‘…‡••–Š”‘—‰Š™Š‹…Šƒ‘”ƒŽŽ›‰‡‡”ƒ–‡†‹˜‘‹…‡ ƒ† ƒ—–Š‡–‹…ƒ–‡† „› –Š‡ †‡•‹‰ƒ–‡†
‹•ƒ—–Š‡–‹…ƒ–‡†„›
Ǥ–‹•ƒ’’Ž‹…ƒ„Ž‡‘Ž›–‘ʹ–”ƒ•ƒ…–‹‘•Ǥ ’‘”–ƒŽǤ”‡˜‹‘—•Ž›‹˜‘‹…‡•‰‡‡”ƒ–‡†
„›†‹ˆˆ‡”‡–•‘ˆ–™ƒ”‡Ž‘‘‡†•‹‹Žƒ”
–‘ Š—ƒ•ǡ „—– …‘’—–‡” •›•–‡
…ƒǯ–—†‡”•–ƒ†‹–ˆ—ŽŽ›–Š‘—‰Š–Š‡„—•‹‡••—•‡”•…ƒ—†‡”•–ƒ†–Š‡ǤǦ‹˜‘‹…‹‰Šƒ•†‘‡ƒ™ƒ›™‹–Š–Š‹•
•Š‘”–…‘‹‰Ǥ
‡Ǧ‹˜‘‹…‡‹•–Š‡‹–”‘†—…–‹‘‘ˆ–Š‡†‹‰‹–ƒŽ‹˜‘‹…‡ˆ‘”‰‘‘†•ƒ†•‡”˜‹…‡•’”‘˜‹†‡†„›–Š‡
„—•‹‡•• ˆ‹” ‰‡‡”ƒ–‡† ƒ– –Š‡ ‰‘˜‡”‡–
 ’‘”–ƒŽǤ Š‡ …‘…‡’– ‘ˆ
 ‡Ǧ‹˜‘‹…‡ ‰‡‡”ƒ–‹‘ •›•–‡ ‹•
 748 Lesson 15 Ȉ EP-TL

Žƒ—…Š‡†ˆ‘””‡†—…–‹‘‹
‡˜ƒ•‹‘Ǥ‡‰‹•–‡”‡†’‡”•‘™Š‘•‡‰‰”‡‰ƒ–‡—”‘˜‡”‹ƒˆ‹ƒ…‹ƒŽ›‡ƒ”‡š…‡‡†•
•ǤͷͲͲ…”‘”‡••ŠƒŽŽ’”‡’ƒ”‡‡Ž‡…–”‘‹…‹˜‘‹…‡ƒ†•ƒ‡™‹ŽŽ„‡ƒ†ƒ–‘”›ˆ”‘ͳ•–…–‘„‡”ǡʹͲʹͲǤ
‘–‹ϐ‹…ƒ–‹‘‘Ǥͳ͵ȀʹͲͳͻǤǤ†ƒ–‡†ͳ͵ǤͳʹǤʹͲͳͻŠƒ•„‡‡‹••—‡†•‘ƒ•–‘
‹•‡”–•—„Ǧ”—Ž‡ȋͶȌǡȋͷȌƒ†ȋ͸Ȍ‹—Ž‡Ͷͺ‘ˆ–Š‡
—Ž‡•ǡ™Ǥ‡ǤˆͳǤͶǤʹͲʹͲǡ ‘–‹ϐ‹…ƒ–‹‘‘ǤͷȀʹͲʹͳȂ‡–”ƒŽ
–‘’”‘˜‹†‡ˆ‘”‹••—ƒ…‡‘ˆ‡‹˜‘‹…‡•„›…‡”–ƒ‹…ƒ–‡‰‘”›‘ˆ’‡”•‘•Ǥ—…Š ƒš†ƒ–‡†ƒ”…ŠͲͺǡʹͲʹͳǤ
‡™Ž›‹–”‘†—…‡†’”‘˜‹•‹‘•ƒ”‡„”‹‡ˆ‡†ƒ•—†‡”Ǥ Š‡‘–‹ϐ‹‡†–Šƒ–‡Ǧ˜‘‹…‹‰
Ȉ RuŽ‡ ͶͺȋͶȌ Š‡ ‹˜‘‹…‡ •ŠƒŽŽ „‡ ’”‡’ƒ”‡† „› •—…Š …Žƒ•• ‘ˆ ™‹ŽŽ „‡ ƒ’’Ž‹…ƒ„Ž‡ ˆ”‘ ’”‹Ž Ͳͳǡ
”‡‰‹•–‡”‡†’‡”•‘•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–ǡ‘–Š‡ ʹͲʹͳ ˆ‘” „—•‹‡••‡• ™‹–Š ƒ –—”-
”‡…‘‡†ƒ–‹‘• ‘ˆ –Š‡ ‘—…‹Žǡ „› ‹…Ž—†‹‰ •—…Š ’ƒ”–‹…—Žƒ”• ‘˜‡”‘ˆ‘”‡–Šƒ•ǤͷͲ…”‘”‡•‹
…‘–ƒ‹‡† ‹ 
 ǦͲͳ ƒˆ–‡” ‘„–ƒ‹‹‰ ƒ ˜‘‹…‡ ƒ› ϐ‹ƒ…‹ƒŽ ›‡ƒ” ˆ”‘  ʹͲͳ͹Ǧ
‡ˆ‡”‡…‡ —„‡” „› —’Ž‘ƒ†‹‰ ‹ˆ‘”ƒ–‹‘ …‘–ƒ‹‡† –Š‡”‡‹ ͳͺ‘™ƒ”†•Ǥ
‘–Š‡‘‘
‘‘†•ƒ†‡”˜‹…‡•ƒšŽ‡…–”‘‹…‘”–ƒŽ‹•—…Š
ƒ‡”ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›„‡
•’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘Ǥ
‘™‡˜‡”ǡ e-invoice †‘‡•ǯ– ƒ’’Ž›
Ȉ —Ž‡ͶͺȋͷȌ‡˜‡”›‹˜‘‹…‡‹••—‡†„›ƒ’‡”•‘–‘™Š‘•—„Ǧ”—Ž‡ȋͶȌ
ƒ’’Ž‹‡•‹ƒ›ƒ‡”‘–Š‡”–Šƒ–Š‡ƒ‡”•’‡…‹ϐ‹‡†‹–Š‡•ƒ‹† –‘–Š‡ˆ‘ŽŽ‘™‹‰…ƒ–‡‰‘”›‘ˆ’‡”•‘•
•—„Ǧ”—Ž‡•ŠƒŽŽ‘–„‡–”‡ƒ–‡†ƒ•ƒ‹˜‘‹…‡Ǥ ‹””‡•’‡…–‹˜‡‘ˆ–Š‡‹”–—”‘˜‡”Ǧ

Ȉ —Ž‡Ͷͺȋ͸Ȍ–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ”—Ž‡•ȋͳȌƒ†ȋʹȌ•ŠƒŽŽ‘–ƒ’’Ž› ¾’‡…‹ƒŽ …‘‘‹… ‘‡

–‘ƒ‹˜‘‹…‡’”‡’ƒ”‡†‹–Š‡ƒ‡”•’‡…‹ϐ‹‡†‹•—„Ǧ”—Ž‡ȋͶȌǤ —‹–• ȋ‡š…Ž—†‡† ˜‹ƒ 
Ȉ ‹†‡ ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ ͹ͲȀʹͲͳͻǦ †ƒ–‡† ͳ͵ǤͳʹǤʹͲͳͻǡ –Š‡ ‘–‹ϐ‹…ƒ–‹‘‘Ǥ͸ͳȀʹͲʹͲȂ

‘˜‡”‡– Šƒ• ‘–‹ϐ‹‡† ”‡‰‹•–‡”‡† ’‡”•‘ǡ ™Š‘•‡ ƒ‰‰”‡‰ƒ–‡ ‡–”ƒŽƒšȌǡ
–—”‘˜‡”‹ƒϐ‹ƒ…‹ƒŽ›‡ƒ”‡š…‡‡†•‘‡Š—†”‡†…”‘”‡”—’‡‡•ǡƒ• ¾‹•—”‡”ǡ
ƒ…Žƒ••‘ˆ”‡‰‹•–‡”‡†’‡”•‘™Š‘•ŠƒŽŽ’”‡’ƒ”‡‹˜‘‹…‡‹–‡”•‘ˆ
•—„Ǧ”—Ž‡ ȋͶȌ ‘ˆ ”—Ž‡ Ͷͺ ‘ˆ –Š‡ •ƒ‹† ”—Ž‡• ‹ ”‡•’‡…– ‘ˆ •—’’Ž› ‘ˆ ¾ ǡ
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–‘ƒ”‡‰‹•–‡”‡†’‡”•‘Ǥ
¾
‘‘†•”ƒ•’‘”–‰‡…›ǡ
Ȉ ‹†‡ ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ ͸ͻȀʹͲͳͻǦ †ƒ–‡† ͳ͵ǤͳʹǤʹͲͳͻǡ –Š‡

‘˜‡”‡– Šƒ• ˆ—”–Š‡” ‹••—‡† ‘–‹ϐ‹…ƒ–‹‘• •‘ ƒ• –‘ ‘–‹ˆ› –Š‡ ¾„ƒ‹‰…‘’ƒ›ǡ
’‘”–ƒŽ•™Š‡”‡‡Ǧ‹˜‘‹…‡•‹–‡”•‘ˆ•—„Ǧ”—Ž‡ȋͶȌ‘ˆ”—Ž‡Ͷͺ•ŠƒŽŽ
„‡’”‡’ƒ”‡†Ǥ‹•–‘ˆ’‘”–ƒŽ•ƒ”‡ƒ•„‡Ž‘™Ǣ ¾ϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ

ȋ‹Ȍ ™™™Ǥ‡‹˜‘‹…‡ͳǤ‰•–Ǥ‰‘˜Ǥ‹Ǣ ¾ ’‡”•‘ •—’’Ž›‹‰ ’ƒ•-

ȋ‹‹Ȍ ™™™Ǥ‡‹˜‘‹…‡ʹǤ‰•–Ǥ‰‘˜Ǥ‹Ǣ •‡‰‡” –”ƒ•’‘”–ƒ–‹‘ •‡”-
˜‹…‡•ǡ
ȋ‹‹‹Ȍ ™™™Ǥ‡‹˜‘‹…‡͵Ǥ‰•–Ǥ‰‘˜Ǥ‹Ǣ
ȋ‹˜Ȍ ™™™Ǥ‡‹˜‘‹…‡ͶǤ‰•–Ǥ‰‘˜Ǥ‹Ǣ ¾ ’‡”•‘ •—’’Ž›‹‰ •‡”-
˜‹…‡• ‘ˆ ƒ†‹••‹‘ –‘ –Š‡
ȋ˜Ȍ ™™™Ǥ‡‹˜‘‹…‡ͷǤ‰•–Ǥ‰‘˜Ǥ‹Ǣ ‡šŠ‹„‹–‹‘‘ˆ–Š‡…‹‡ƒ–‘-
ȋ˜‹Ȍ ™™™Ǥ‡‹˜‘‹…‡͸Ǥ‰•–Ǥ‰‘˜Ǥ‹Ǣ ‰”ƒ’Š‹… ϐ‹Ž• ‹ —Ž–‹’Ž‡š
ȋ˜‹‹Ȍ ™™™Ǥ‡‹˜‘‹…‡͹Ǥ‰•–Ǥ‰‘˜Ǥ‹Ǣ •‡”˜‹…‡•Ǥ
ȋ˜‹‹‹Ȍ ™™™Ǥ‡‹˜‘‹…‡ͺǤ‰•–Ǥ‰‘˜Ǥ‹Ǣ
ȋ‹šȌ ™™™Ǥ‡‹˜‘‹…‡ͻǤ‰•–Ǥ‰‘˜Ǥ‹Ǣ
ȋšȌ ™™™Ǥ‡‹˜‘‹…‡ͳͲǤ‰•–Ǥ‰‘˜Ǥ‹Ǥ
Bill of supply [Rule 49]
„‹ŽŽ‘ˆ•—’’Ž›”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ…Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳ•ŠƒŽŽ„‡‹••—‡†„›–Š‡•—’’Ž‹‡”…‘–ƒ‹‹‰ –Š‡
ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ǣǦ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡•—’’Ž‹‡”Ǣ
ȋ„Ȍ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” ‘– ‡š…‡‡†‹‰ •‹š–‡‡ …Šƒ”ƒ…–‡”•ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ …‘–ƒ‹‹‰
ƒŽ’Šƒ„‡–• ‘” —‡”ƒŽ• ‘” •’‡…‹ƒŽ …Šƒ”ƒ…–‡”• ǦŠ›’Š‡ ‘” †ƒ•Š ƒ† •Žƒ•Š •›„‘Ž‹•‡† ƒ• DzǦdz ƒ†
DzȀdz”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ…Ȍ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 749

ȋ†Ȍ ƒ‡ǡƒ††”‡••ƒ†
‘”ǡ‹ˆ”‡‰‹•–‡”‡†ǡ‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋ‡Ȍ ‘†‡‘ˆ‰‘‘†•‘”……‘—–‹‰‘†‡ˆ‘”•‡”˜‹…‡•Ǣ
ȋˆȌ †‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
ȋ‰Ȍ ˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š–ƒ‹‰‹–‘ƒ……‘—–†‹•…‘—–‘”ƒ„ƒ–‡‡–ǡ‹ˆƒ›Ǣƒ†
ȋŠȌ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹œ‡†”‡’”‡•‡–ƒ–‹˜‡ǣ
”‘˜‹†‡†–Šƒ––Š‡’”‘˜‹•‘•–‘”—Ž‡Ͷ͸•ŠƒŽŽǡmutatis mutandisǡƒ’’Ž›–‘–Š‡„‹ŽŽ‘ˆ•—’’Ž›‹••—‡†—†‡”–Š‹•”—Ž‡Ǥ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–ƒ›–ƒš‹˜‘‹…‡‘”ƒ›‘–Š‡”•‹‹Žƒ”†‘…—‡–‹••—‡†—†‡”ƒ›‘–Š‡”…–ˆ‘”–Š‡–‹‡„‡‹‰ ‹
ˆ‘”…‡‹”‡•’‡…–‘ˆƒ›‘–ƒšƒ„Ž‡•—’’Ž›•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•ƒ„‹ŽŽ‘ˆ•—’’Ž›ˆ‘”–Š‡’—”’‘•‡•‘ˆ–Š‡…–Ǥ
”‘˜‹†‡†ƒŽ•‘–Šƒ––Š‡•‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡•ŠƒŽŽ‘– „‡
”‡“—‹”‡† ‹ –Š‡ …ƒ•‡ ‘ˆ ‹••—ƒ…‡ ‘ˆ ƒ ‡Ž‡…–”‘‹… „‹ŽŽ ‘ˆ •—’’Ž› ‹ ƒ……‘”†ƒ…‡ ™‹–Š –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡
ˆ‘”ƒ–‹‘‡…Š‘Ž‘‰›…–ǡʹͲͲͲȋʹͳ‘ˆʹͲͲͲȌǤ

Receipt voucher [Rule 50]

”‡…‡‹’–˜‘—…Š‡””‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ†Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳ•ŠƒŽŽ…‘–ƒ‹–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ǣ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡•—’’Ž‹‡”Ǣ
ȋ„Ȍ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” …‘–ƒ‹‹‰ ƒŽ’Šƒ„‡–• ‘” —‡”ƒŽ• ‘” •’‡…‹ƒŽ …Šƒ”ƒ…–‡”• ǦŠ›’Š‡ ‘” †ƒ•Šƒ†
•Žƒ•Š•›„‘Ž‹•‡†ƒ•DzǦdzƒ†DzȀdz”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ…Ȍ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
ȋ†Ȍ ƒ‡ǡƒ††”‡••ƒ†
‘”ǡ‹ˆ”‡‰‹•–‡”‡†ǡ‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋ‡Ȍ †‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǣ
ȋˆȌ ƒ‘—–‘ˆƒ†˜ƒ…‡–ƒ‡Ǣ
ȋ‰Ȍ ”ƒ–‡‘ˆ–ƒšȋ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒšǡ‹‘–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋŠȌ ƒ‘—–‘ˆ–ƒš…Šƒ”‰‡†‹”‡•’‡…–‘ˆ–ƒšƒ„Ž‡‰‘‘†•‘”•‡”˜‹…‡•ȋ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒšǡ ‹‘
–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋ‹Ȍ ’Žƒ…‡‘ˆ•—’’Ž›ƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–ƒ–‡ƒ†‹–•…‘†‡ǡ‹…ƒ•‡‘ˆƒ•—’’Ž›‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡ –”ƒ†‡‘”
…‘‡”…‡Ǣ
ȋŒȌ ™Š‡–Š‡”–Š‡–ƒš‹•’ƒ›ƒ„Ž‡‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǣƒ†
ȋȌ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹œ‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ––Š‡–‹‡
‘ˆ”‡…‡‹’–‘ˆƒ†˜ƒ…‡ǡǦ
ȋ‹Ȍ –Š‡”ƒ–‡‘ˆ–ƒš‹•‘–†‡–‡”‹ƒ„Ž‡ǡ–Š‡–ƒš•ŠƒŽŽ„‡’ƒ‹†ƒ––Š‡”ƒ–‡‘ˆ‡‹‰Š–‡‡’‡”…‡–ǤǢ
ȋ‹‹Ȍ –Š‡ƒ–—”‡‘ˆ•—’’Ž›‹•‘–†‡–‡”‹ƒ„Ž‡ǡ–Š‡•ƒ‡•ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•‹–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ
Refund voucher [Rule 51]
”‡ˆ—†˜‘—…Š‡””‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‡Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳ•ŠƒŽŽ…‘–ƒ‹–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ǡ
ƒ‡Ž›ǣǦ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡•—’’Ž‹‡”Ǣ
ȋ„Ȍ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” ‘– ‡š…‡‡†‹‰ •‹š–‡‡ …Šƒ”ƒ…–‡”•ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ …‘–ƒ‹‹‰
ƒŽ’Šƒ„‡–•‘”—‡”ƒŽ•‘”•’‡…‹ƒŽ…Šƒ”ƒ…–‡”•Š›’Š‡‘”†ƒ•Šƒ†•Žƒ•Š•›„‘Ž‹•‡†ƒ•DzǦdzƒ†DzȀdz”‡•’‡…–‹˜‡Ž›ǡ
ƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ…Ȍ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
ȋ†Ȍ ƒ‡ǡ ƒ††”‡•• ƒ†
‘‘†• ƒ† ‡”˜‹…‡• ƒš †‡–‹ϐ‹…ƒ–‹‘ —„‡” ‘” ‹“—‡ †‡–‹–› —„‡”ǡ ‹ˆ
”‡‰‹•–‡”‡†ǡ‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋ‡Ȍ —„‡”ƒ††ƒ–‡‘ˆ”‡…‡‹’–˜‘—…Š‡”‹••—‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ”—Ž‡ͷͲǢ
 750 Lesson 15 Ȉ EP-TL

ȋˆȌ †‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹”‡•’‡…–‘ˆ™Š‹…Š”‡ˆ—†‹•ƒ†‡Ǣ
ȋ‰Ȍ ƒ‘—–‘ˆ”‡ˆ—†ƒ†‡Ǣ
ȋŠȌ ”ƒ–‡‘ˆ–ƒšȋ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒšǡ‹‘–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋ‹Ȍ ƒ‘—–‘ˆ–ƒš’ƒ‹†‹”‡•’‡…–‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•ȋ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒšǡ‹‘ –‡””‹–‘”›
–ƒš‘”…‡••ȌǢ
ȋŒȌ ™Š‡–Š‡”–Š‡–ƒš‹•’ƒ›ƒ„Ž‡‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǣƒ†
ȋȌ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
Payment voucher [Rule 52]
’ƒ›‡–˜‘—…Š‡””‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ‰Ȍ‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘͵ͳ•ŠƒŽŽ…‘–ƒ‹–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ǡ
ƒ‡Ž›ǣǦ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡•—’’Ž‹‡”‹ˆ”‡‰‹•–‡”‡†Ǣ
ȋ„Ȍ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” ‘– ‡š…‡‡†‹‰ •‹š–‡‡ …Šƒ”ƒ…–‡”•ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ …‘–ƒ‹‹‰
ƒŽ’Šƒ„‡–• ‘” —‡”ƒŽ• ‘” •’‡…‹ƒŽ …Šƒ”ƒ…–‡”• Š›’Š‡ ‘” †ƒ•Š ƒ† •Žƒ•Š •›„‘Ž‹•‡† ƒ• DzǦdz ƒ† DzȀdz
”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ…Ȍ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
ȋ†Ȍ ƒ‡ǡƒ††”‡••ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋ‡Ȍ †‡•…”‹’–‹‘‘ˆ‰‘‘†•‘”•‡”˜‹…‡•Ǣ
ȋˆȌ ƒ‘—–’ƒ‹†Ǣ
ȋ‰Ȍ ”ƒ–‡‘ˆ–ƒšȋ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒšǡ‹‘–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋŠȌ ƒ‘—–‘ˆ–ƒš’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ–ƒšƒ„Ž‡‰‘‘†•‘”•‡”˜‹…‡•ȋ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒšǡ–‡‰”ƒ–‡†–ƒšǡ ‹‘
–‡””‹–‘”›–ƒš‘”…‡••ȌǢ
ȋ‹Ȍ ’Žƒ…‡‘ˆ•—’’Ž›ƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–ƒ–‡ƒ†‹–•…‘†‡ǡ‹…ƒ•‡‘ˆƒ•—’’Ž›‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡ –”ƒ†‡‘”
…‘‡”…‡Ǣƒ†
ȋŒȌ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
Revised tax invoice and credit or debit notes [Rule 53]
(1) A revised tax invoice referred to in section 31 shall contain the following particulars, namely:-
ȋƒȌ –Š‡™‘”†Dz‡˜‹•‡†˜‘‹…‡dzǡ™Š‡”‡˜‡”ƒ’’Ž‹…ƒ„Ž‡ǡ‹†‹…ƒ–‡†’”‘‹‡–Ž›Ǣ
ȋ„Ȍ ƒ‡ǡƒ††”‡••ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡•—’’Ž‹‡”Ǣ
ȋ…Ȍ ȏ‘‹––‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘ǤͲ͵ȀʹͲͳͻǦ†–ǤʹͻǤͲͳǤʹͲͳͻ™Ǥ‡ǤˆǤͲͳǤͲʹǤʹͲͳͻȐǢ
ȋ†Ȍ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” ‘– ‡š…‡‡†‹‰ •‹š–‡‡ …Šƒ”ƒ…–‡”•ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ…‘–ƒ‹‹‰
ƒŽ’Šƒ„‡–• ‘” —‡”ƒŽ• ‘” •’‡…‹ƒŽ …Šƒ”ƒ…–‡”• Š›’Š‡ ‘” †ƒ•Š ƒ† •Žƒ•Š •›„‘Ž‹•‡† ƒ• DzǦdz ƒ† DzȀdz
”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ‡Ȍ †ƒ–‡‘ˆ‹••—‡‘ˆ–Š‡†‘…—‡–Ǣ
ȋˆȌ ƒ‡ǡ ƒ††”‡•• ƒ†
‘‘†• ƒ† ‡”˜‹…‡• ƒš †‡–‹ϐ‹…ƒ–‹‘ —„‡” ‘” ‹“—‡ †‡–‹–› —„‡”ǡ ‹ˆ
”‡‰‹•–‡”‡†ǡ‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋ‰Ȍ ƒ‡ƒ†ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–ƒ†–Š‡ƒ††”‡••‘ˆ†‡Ž‹˜‡”›ǡƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–ƒ–‡ƒ†‹–•
…‘†‡ǡ‹ˆ•—…Š”‡…‹’‹‡–‹•—Ǧ”‡‰‹•–‡”‡†Ǣ
ȋŠȌ •‡”‹ƒŽ—„‡”ƒ††ƒ–‡‘ˆ–Š‡…‘””‡•’‘†‹‰–ƒš‹˜‘‹…‡‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ„‹ŽŽ‘ˆ•—’’Ž›ǡƒ†
ȋ‹Ȍ ȏ‘‹––‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘ǤͲ͵ȀʹͲͳͻǦ†–ǤʹͻǤͲͳǤʹͲͳͻ™Ǥ‡ǤˆǤͲͳǤͲʹǤʹͲͳͻȐǢ
ȋŒȌ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
ȋͳȌ …”‡†‹–‘”†‡„‹–‘–‡”‡ˆ‡””‡†–‘‹•‡…–‹‘͵Ͷ•ŠƒŽŽ…‘–ƒ‹–Š‡ˆ‘ŽŽ‘™‹‰’ƒ”–‹…—Žƒ”•ǡƒ‡Ž›ǣȂ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡•—’’Ž‹‡”Ǣ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 751

ȋ„Ȍ ƒ–—”‡‘ˆ–Š‡†‘…—‡–Ǣ
ȋ…Ȍ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” ‘– ‡š…‡‡†‹‰ •‹š–‡‡ …Šƒ”ƒ…–‡”•ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ…‘–ƒ‹‹‰
ƒŽ’Šƒ„‡–•‘”—‡”ƒŽ•‘”•’‡…‹ƒŽ…Šƒ”ƒ…–‡”•ǦŠ›’Š‡‘”†ƒ•Šƒ†•Žƒ•Š•›„‘Ž‹•‡†ƒ•ȆDzǦDzƒ†ȆDzȀdz
”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ†Ȍ †ƒ–‡‘ˆ‹••—‡‘ˆ–Š‡†‘…—‡–Ǣ
ȋ‡Ȍ ƒ‡ǡ ƒ††”‡•• ƒ†
‘‘†• ƒ† ‡”˜‹…‡• ƒš †‡–‹ϐ‹…ƒ–‹‘ —„‡” ‘” ‹“—‡ †‡–‹–› —„‡”ǡ ‹ˆ
”‡‰‹•–‡”‡†ǡ‘ˆ–Š‡”‡…‹’‹‡–Ǣ
ȋˆȌ ƒ‡ƒ†ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–ƒ†–Š‡ƒ††”‡••‘ˆ†‡Ž‹˜‡”›ǡƒŽ‘‰™‹–Š–Š‡ƒ‡‘ˆ–ƒ–‡ƒ†‹–•
…‘†‡ǡ‹ˆ•—…Š”‡…‹’‹‡–‹•—Ǧ”‡‰‹•–‡”‡†Ǣ
ȋ‰Ȍ •‡”‹ƒŽ —„‡”ȋ•Ȍ ƒ† †ƒ–‡ȋ•Ȍ ‘ˆ –Š‡ …‘””‡•’‘†‹‰ –ƒš ‹˜‘‹…‡ȋ•Ȍ ‘”ǡ ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ „‹ŽŽȋ•Ȍ ‘ˆ
•—’’Ž›Ǣ
ȋŠȌ ˜ƒŽ—‡‘ˆ–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ǡ”ƒ–‡‘ˆ–ƒšƒ†–Š‡ƒ‘—–‘ˆ–Š‡–ƒš…”‡†‹–‡†‘”ǡƒ•–Š‡
…ƒ•‡ƒ›„‡ǡ†‡„‹–‡†–‘–Š‡”‡…‹’‹‡–Ǣƒ†
ȋ‹Ȍ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡•—’’Ž‹‡”‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
ȋʹȌ ˜‡”›”‡‰‹•–‡”‡†’‡”•‘™Š‘Šƒ•„‡‡‰”ƒ–‡†”‡‰‹•–”ƒ–‹‘™‹–Š‡ˆˆ‡…–ˆ”‘ƒ†ƒ–‡‡ƒ”Ž‹‡”–Šƒ–Š‡†ƒ–‡‘ˆ
‹••—ƒ…‡‘ˆ…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘–‘Š‹ǡƒ›‹••—‡”‡˜‹•‡†–ƒš ‹˜‘‹…‡•‹”‡•’‡…–‘ˆ–ƒšƒ„Ž‡ •—’’Ž‹‡•
‡ˆˆ‡…–‡††—”‹‰–Š‡’‡”‹‘†•–ƒ”–‹‰ˆ”‘–Š‡‡ˆˆ‡…–‹˜‡†ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘–‹ŽŽ–Š‡†ƒ–‡‘ˆ–Š‡‹••—ƒ…‡‘ˆ–Š‡
…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘Ǥ
 ”‘˜‹†‡† –Šƒ– –Š‡ ”‡‰‹•–‡”‡† ’‡”•‘ ƒ› ‹••—‡ ƒ …‘•‘Ž‹†ƒ–‡† ”‡˜‹•‡† –ƒš ‹˜‘‹…‡ ‹ ”‡•’‡…– ‘ˆ ƒŽŽ –ƒšƒ„Ž‡
•—’’Ž‹‡•ƒ†‡–‘ƒ”‡…‹’‹‡–™Š‘‹•‘–”‡‰‹•–‡”‡†—†‡”–Š‡…–†—”‹‰•—…Š’‡”‹‘†Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–‹–Š‡…ƒ•‡‘ˆ‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•ǡ™Š‡”‡–Š‡˜ƒŽ—‡‘ˆƒ•—’’Ž›†‘‡•‘–‡š…‡‡†–™‘ŽƒŠ
ƒ† ϐ‹ˆ–› –Š‘—•ƒ† ”—’‡‡•ǡ ƒ …‘•‘Ž‹†ƒ–‡† ”‡˜‹•‡† ‹˜‘‹…‡ ƒ› „‡ ‹••—‡† •‡’ƒ”ƒ–‡Ž› ‹ ”‡•’‡…– ‘ˆ ƒŽŽ –Š‡
”‡…‹’‹‡–•Ž‘…ƒ–‡†‹ƒ–ƒ–‡ǡ™Š‘ƒ”‡‘–”‡‰‹•–‡”‡†—†‡”–Š‡…–Ǥ
ȋ͵Ȍ ›‹˜‘‹…‡‘”†‡„‹–‘–‡‹••—‡†‹’—”•—ƒ…‡‘ˆƒ›–ƒš’ƒ›ƒ„Ž‡‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘
͹Ͷ‘”•‡…–‹‘ͳʹͻ‘”•‡…–‹‘ͳ͵Ͳ•ŠƒŽŽ’”‘‹‡–Ž›…‘–ƒ‹–Š‡™‘”†•DzdzǤ
Tax Invoice in special cases [Rule 54]
ȋͳȌ ‹˜‘‹…‡‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ…”‡†‹–‘–‡‹••—‡†„›ƒ’—–‡”˜‹…‡‹•–”‹„—–‘”•ŠƒŽŽ…‘–ƒ‹
–Š‡ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ǣǦ
ȋƒȌ ƒ‡ǡƒ††”‡••ƒ†
‘ˆ–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”Ǣ
ȋ„Ȍ ƒ…‘•‡…—–‹˜‡•‡”‹ƒŽ—„‡”…‘–ƒ‹‹‰ƒŽ’Šƒ„‡–•‘”—‡”ƒŽ•‘”•’‡…‹ƒŽ…Šƒ”ƒ…–‡”•Š›’Š‡‘”†ƒ•Šƒ†
•Žƒ•Š•›„‘Ž‹•‡†ƒ•ǡDzǦdzǡDzȀdzǡ”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
ȋ…Ȍ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
ȋ†Ȍ ƒ‡ǡƒ††”‡••ƒ†
ȋ
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”Ȍ‘ˆ–Š‡”‡…‹’‹‡––‘™Š‘
–Š‡…”‡†‹–‹•†‹•–”‹„—–‡†Ǣȋ‡Ȍƒ‘—–‘ˆ–Š‡…”‡†‹–†‹•–”‹„—–‡†Ǣƒ†
ȋˆȌ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”‘”Š‹•ƒ—–Š‘”‹œ‡†”‡’”‡•‡–ƒ–‹˜‡ǣ
 ”‘˜‹†‡†–Šƒ–™Š‡”‡–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”‹•ƒ‘ˆϐ‹…‡‘ˆƒ„ƒ‹‰…‘’ƒ›‘”ƒϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ
‹…Ž—†‹‰ƒ‘Ǧ„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›ǡƒ–ƒš‹˜‘‹…‡•ŠƒŽŽ‹…Ž—†‡ƒ›†‘…—‡–‹Ž‹‡—–Š‡”‡‘ˆǡ„›™Šƒ–‡˜‡”
ƒ‡…ƒŽŽ‡†ǡ™Š‡–Š‡”‘”‘–•‡”‹ƒŽŽ›—„‡”‡†„—–…‘–ƒ‹‹‰–Š‡‹ˆ‘”ƒ–‹‘ƒ•’”‡•…”‹„‡†ƒ„‘˜‡Ǥ
ȋͳȌȋƒȌ ”‡‰‹•–‡”‡†’‡”•‘ǡŠƒ˜‹‰–Š‡•ƒ‡ƒ†–ƒ–‡…‘†‡ƒ•ƒ’—–‡”˜‹…‡‹•–”‹„—–‘”ǡƒ›‹••—‡ ƒ
‹˜‘‹…‡‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡƒ…”‡†‹–‘”†‡„‹–‘–‡–‘–”ƒ•ˆ‡”–Š‡…”‡†‹–‘ˆ…‘‘‹’—–•‡”˜‹…‡•–‘
–Š‡ ’—–‡”˜‹…‡‹•–”‹„—–‘”ǡ™Š‹…Š•ŠƒŽŽ…‘–ƒ‹–Š‡ˆ‘ŽŽ‘™‹‰†‡–ƒ‹Ž•ǣǦ
‹Ǥ ƒ‡ǡ ƒ††”‡•• ƒ†
‘‘†• ƒ† ‡”˜‹…‡• ƒš †‡–‹ϐ‹…ƒ–‹‘ —„‡” ‘ˆ –Š‡ ”‡‰‹•–‡”‡† ’‡”•‘
Šƒ˜‹‰–Š‡•ƒ‡ƒ†•ƒ‡–ƒ–‡…‘†‡ƒ•–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”Ǣ
‹‹Ǥ ƒ …‘•‡…—–‹˜‡ •‡”‹ƒŽ —„‡” ‘– ‡š…‡‡†‹‰ •‹š–‡‡ …Šƒ”ƒ…–‡”•ǡ ‹ ‘‡ ‘” —Ž–‹’Ž‡ •‡”‹‡•ǡ
…‘–ƒ‹‹‰ƒŽ’Šƒ„‡–•‘”—‡”ƒŽ•‘”•’‡…‹ƒŽ…Šƒ”ƒ…–‡”•ǦŠ›’Š‡‘”†ƒ•Šƒ†•Žƒ•Š•›„‘Ž‹•‡†
ƒ•ȆDzǦDzƒ†DzȀdz”‡•’‡…–‹˜‡Ž›ǡƒ†ƒ›…‘„‹ƒ–‹‘–Š‡”‡‘ˆǡ—‹“—‡ˆ‘”ƒϐ‹ƒ…‹ƒŽ›‡ƒ”Ǣ
 752 Lesson 15 Ȉ EP-TL

i‹‹Ǥ †ƒ–‡‘ˆ‹–•‹••—‡Ǣ
‹˜Ǥ
‘‘†• ƒ† ‡”˜‹…‡• ƒš †‡–‹ϐ‹…ƒ–‹‘ —„‡” ‘ˆ •—’’Ž‹‡” ‘ˆ …‘‘ •‡”˜‹…‡ ƒ† ‘”‹‰‹ƒŽ
‹˜‘‹…‡—„‡”™Š‘•‡…”‡†‹–‹••‘—‰Š––‘„‡–”ƒ•ˆ‡””‡†–‘–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”Ǣ
˜Ǥ ƒ‡ǡƒ††”‡••ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡’—–‡”˜‹…‡‹•–”‹„—–‘”Ǣ
˜‹Ǥ –ƒšƒ„Ž‡˜ƒŽ—‡ǡ”ƒ–‡ƒ†ƒ‘—–‘ˆ–Š‡…”‡†‹––‘„‡–”ƒ•ˆ‡””‡†Ǣƒ†
˜‹‹Ǥ •‹‰ƒ–—”‡‘”†‹‰‹–ƒŽ•‹‰ƒ–—”‡‘ˆ–Š‡”‡‰‹•–‡”‡†’‡”•‘‘”Š‹•ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡Ǥ
ȋ„Ȍ Š‡ –ƒšƒ„Ž‡ ˜ƒŽ—‡ ‹ –Š‡ ‹˜‘‹…‡ ‹••—‡† —†‡” …Žƒ—•‡ ȋƒȌ •ŠƒŽŽ „‡ –Š‡ •ƒ‡ ƒ• –Š‡ ˜ƒŽ—‡ ‘ˆ –Š‡
…‘‘ •‡”˜‹…‡•Ǥ
ȋʹȌ Š‡”‡–Š‡•—’’Ž‹‡”‘ˆ–ƒšƒ„Ž‡•‡”˜‹…‡‹•ƒ‹•—”‡”‘”ƒ„ƒ‹‰…‘’ƒ›‘”ƒϐ‹ƒ…‹ƒŽ‹•–‹–—–‹‘ǡ‹…Ž—†‹‰ƒ
‘Ǧ„ƒ‹‰ϐ‹ƒ…‹ƒŽ…‘’ƒ›ǡ–Š‡•ƒ‹†•—’’Ž‹‡”ƒ›‹••—‡ƒ…‘•‘Ž‹†ƒ–‡†–ƒš‹˜‘‹…‡‘”ƒ›‘–Š‡”†‘…—‡–
‹ Ž‹‡—–Š‡”‡‘ˆǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†ǡˆ‘”–Š‡•—’’Ž›‘ˆ•‡”˜‹…‡•ƒ†‡†—”‹‰ƒ‘–Šƒ––Š‡‡†‘ˆ–Š‡
‘–Šǡ ™Š‡–Š‡” ‘” ‘– •‡”‹ƒŽŽ› —„‡”‡†ǡ ƒ† ™Š‡–Š‡” ‘” ‘– …‘–ƒ‹‹‰ –Š‡ ƒ††”‡•• ‘ˆ –Š‡ ”‡…‹’‹‡– ‘ˆ
–ƒšƒ„Ž‡•‡”˜‹…‡ „—–…‘–ƒ‹‹‰‘–Š‡”‹ˆ‘”ƒ–‹‘ƒ•’”‡•…”‹„‡†—†‡””—Ž‡Ͷ͸Ǥ
 ”‘˜‹†‡† –Šƒ– –Š‡ •‹‰ƒ–—”‡ ‘” †‹‰‹–ƒŽ •‹‰ƒ–—”‡ ‘ˆ –Š‡ •—’’Ž‹‡” ‘” Š‹• ƒ—–Š‘”‹•‡† ”‡’”‡•‡–ƒ–‹˜‡ •ŠƒŽŽ ‘–
„‡ ”‡“—‹”‡†‹–Š‡…ƒ•‡‘ˆ‹••—ƒ…‡‘ˆƒ…‘•‘Ž‹†ƒ–‡†–ƒš‹˜‘‹…‡‘”ƒ›‘–Š‡”†‘…—‡–‹Ž‹‡— –Š‡”‡‘ˆ‹
ƒ……‘”†ƒ…‡ ™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡ˆ‘”ƒ–‹‘‡…Š‘Ž‘‰›…–ǡʹͲͲͲȋʹͳ‘ˆʹͲͲͲȌǤ
ȋ͵Ȍ Š‡”‡ –Š‡ •—’’Ž‹‡” ‘ˆ –ƒšƒ„Ž‡ •‡”˜‹…‡ ‹• ƒ ‰‘‘†• –”ƒ•’‘”– ƒ‰‡…› •—’’Ž›‹‰ •‡”˜‹…‡• ‹ ”‡Žƒ–‹‘ –‘
–”ƒ•’‘”–ƒ–‹‘‘ˆ‰‘‘†•„›”‘ƒ†‹ƒ‰‘‘†•…ƒ””‹ƒ‰‡ǡ–Š‡•ƒ‹†•—’’Ž‹‡”•ŠƒŽŽ‹••—‡ƒ–ƒš‹˜‘‹…‡‘”ƒ›‘–Š‡”
†‘…—‡–‹Ž‹‡—–Š‡”‡‘ˆǡ„›™Šƒ–‡˜‡”ƒ‡…ƒŽŽ‡†ǡ…‘–ƒ‹‹‰–Š‡‰”‘••™‡‹‰Š–‘ˆ–Š‡…‘•‹‰‡–ǡƒ‡‘ˆ
–Š‡…‘•‹‰‘”ƒ†–Š‡…‘•‹‰‡‡ǡ”‡‰‹•–”ƒ–‹‘—„‡”‘ˆ‰‘‘†•…ƒ””‹ƒ‰‡‹™Š‹…Š–Š‡‰‘‘†•ƒ”‡–”ƒ•’‘”–‡†ǡ
†‡–ƒ‹Ž•‘ˆ‰‘‘†•–”ƒ•’‘”–‡†ǡ†‡–ƒ‹Ž•‘ˆ’Žƒ…‡‘ˆ‘”‹‰‹ƒ††‡•–‹ƒ–‹‘ǡ
‘ˆ–Š‡’‡”•‘Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰
–ƒš™Š‡–Š‡” ƒ• …‘•‹‰‘”ǡ …‘•‹‰‡‡‘” ‰‘‘†• –”ƒ•’‘”–ƒ‰‡…›ǡƒ† ƒŽ•‘ …‘–ƒ‹‹‰ ‘–Š‡”‹ˆ‘”ƒ–‹‘ ƒ•
’”‡•…”‹„‡†—†‡””—Ž‡Ͷ͸Ǥ
ȋͶȌ Š‡”‡ –Š‡ •—’’Ž‹‡” ‘ˆ –ƒšƒ„Ž‡ •‡”˜‹…‡ ‹• •—’’Ž›‹‰ ’ƒ••‡‰‡” –”ƒ•’‘”–ƒ–‹‘ •‡”˜‹…‡ǡ ƒ –ƒš ‹˜‘‹…‡ •ŠƒŽŽ
‹…Ž—†‡ –‹…‡– ‹ ƒ› ˆ‘”ǡ „› ™Šƒ–‡˜‡” ƒ‡ …ƒŽŽ‡†ǡ ™Š‡–Š‡” ‘” ‘– •‡”‹ƒŽŽ› —„‡”‡†ǡ ƒ† ™Š‡–Š‡” ‘” ‘–
…‘–ƒ‹‹‰–Š‡ƒ††”‡••‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•‡”˜‹…‡„—–…‘–ƒ‹‹‰‘–Š‡”‹ˆ‘”ƒ–‹‘ƒ•’”‡•…”‹„‡†—†‡””—Ž‡Ͷ͸Ǥ
 ”‘˜‹†‡† –Šƒ– –Š‡ •‹‰ƒ–—”‡ ‘” †‹‰‹–ƒŽ •‹‰ƒ–—”‡ ‘ˆ –Š‡ •—’’Ž‹‡” ‘” Š‹• ƒ—–Š‘”‹•‡† ”‡’”‡•‡–ƒ–‹˜‡ •ŠƒŽŽ ‘–
„‡ ”‡“—‹”‡†‹–Š‡…ƒ•‡‘ˆ‹••—ƒ…‡‘ˆ–‹…‡–‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡ˆ‘”ƒ–‹‘‡…Š‘Ž‘‰›
…–ǡ ʹͲͲͲȋʹͳ‘ˆʹͲͲͲȌǤ
ȋͷȌ Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ”—Ž‡ȋʹȌ‘”•—„Ǧ”—Ž‡ȋͶȌ•ŠƒŽŽƒ’’Ž›ǡmutatis mutandis, –‘–Š‡†‘…—‡–•‹••—‡†—†‡”
”—Ž‡Ͷͻ‘””—Ž‡ͷͲ‘””—Ž‡ͷͳ‘””—Ž‡ͷʹ‘””—Ž‡ͷ͵Ǥ
Delivery Challan [Rule 55]
‡™•‹–—ƒ–‹‘•™Š‡”‡ƒ†‡Ž‹˜‡”›…ŠƒŽŽƒǡ•‡”‹ƒŽŽ›—„‡”‡†ǡ•Š‘—Ž†„‡‹••—‡†‹•–‡ƒ†‘ˆ‹˜‘‹…‡Ǥ—…Š•‹–—ƒ–‹‘• ƒ”‡ƒ•
f‘ŽŽ‘™•ǣ
Ȉ •—’’Ž› ‘ˆ Ž‹“—‹† ‰ƒ• ™Š‡”‡ –Š‡ “—ƒ–‹–› ƒ– –Š‡ –‹‡ ‘ˆ ”‡‘˜ƒŽ ˆ”‘ –Š‡ ’Žƒ…‡ ‘ˆ „—•‹‡•• ‘ˆ –Š‡ •—’’Ž‹‡”
‹•‘–‘™
Ȉ –”ƒ•’‘”–ƒ–‹‘‘ˆ‰‘‘†•ˆ‘”Œ‘„™‘”
Ȉ –”ƒ•’‘”–ƒ–‹‘‘ˆ‰‘‘†•ˆ‘””‡ƒ•‘•‘–Š‡”–Šƒ„›™ƒ›‘ˆ•—’’Ž›ǡ‘”
Ȉ •—…Š‘–Š‡”•—’’Ž‹‡•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‘ƒ”†
”‹‰‹ƒŽˆ‘”
‘•‹‰‡‡

‘‘†•
—’Ž‹…ƒ–‡ˆ‘”
”ƒ•’‘”–‡”
‡Ž‹˜‡”›ŠƒŽŽƒ

”‹’Ž‹…ƒ–‡ˆ‘”
‘•‹‰‘”
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 753

Š‡•—’’Ž‹‡”‹•”‡“—‹”‡†–‘‹••—‡ƒ–ƒš‹˜‘‹…‡ƒˆ–‡”†‡Ž‹˜‡”›‘ˆ‰‘‘†•™Š‡”‡–ƒš‹˜‘‹…‡…‘—Ž†‘–„‡‹••—‡†ƒ––Š‡
–‹‡‘ˆ”‡‘˜ƒŽ‘ˆ‰‘‘†•ˆ‘”–Š‡’—”’‘•‡‘ˆ•—’’Ž›Ǥ
Š‡”‡ –Š‡ ‰‘‘†• ƒ”‡ „‡‹‰ –”ƒ•’‘”–‡† ‹ ƒ •‡‹ ‘…‡† †‘™ ‘” …‘’Ž‡–‡Ž› ‘…‡† †‘™ …‘†‹–‹‘ ‘” ‹
„ƒ–…Š‡•‘”Ž‘–•Ȃ
‡ –Š‡•—’’Ž‹‡”•ŠƒŽŽ‹••—‡–Š‡…‘’Ž‡–‡‹˜‘‹…‡„‡ˆ‘”‡†‹•’ƒ–…Š‘ˆ–Š‡ϐ‹”•–…‘•‹‰‡–Ǣ
‡ –Š‡•—’’Ž‹‡”•ŠƒŽŽ‹••—‡ƒ†‡Ž‹˜‡”›…ŠƒŽŽƒˆ‘”‡ƒ…Š‘ˆ–Š‡•—„•‡“—‡–…‘•‹‰‡–•ǡ‰‹˜‹‰”‡ˆ‡”‡…‡‘ˆ
–Š‡‹˜‘‹…‡Ǣ
‡ ‡ƒ…Š…‘•‹‰‡–•ŠƒŽŽ„‡ƒ……‘’ƒ‹‡†„›…‘’‹‡•‘ˆ–Š‡…‘””‡•’‘†‹‰†‡Ž‹˜‡”›…ŠƒŽŽƒƒŽ‘‰™‹–Šƒ†—Ž›
…‡”–‹ϐ‹‡†…‘’›‘ˆ–Š‡‹˜‘‹…‡Ǣƒ†
‡ –Š‡‘”‹‰‹ƒŽ…‘’›‘ˆ–Š‡‹˜‘‹…‡•ŠƒŽŽ„‡•‡–ƒŽ‘‰™‹–Š–Š‡Žƒ•–…‘•‹‰‡–Ǥ
Rule 55A : Tax Invoice or bill of supply to accompany transport of goods.
Š‡’‡”•‘Ǧ‹Ǧ…Šƒ”‰‡‘ˆ–Š‡…‘˜‡›ƒ…‡•ŠƒŽŽ…ƒ””›ƒ…‘’›‘ˆ–Š‡–ƒš‹˜‘‹…‡‘”–Š‡„‹ŽŽ‘ˆ•—’’Ž›‹••—‡†‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ”—Ž‡•Ͷ͸ǡͶ͸‘”Ͷͻ‹ƒ…ƒ•‡™Š‡”‡•—…Š’‡”•‘‹•‘–”‡“—‹”‡†–‘…ƒ””›ƒ‡Ǧ™ƒ›„‹ŽŽ—†‡”–Š‡•‡”—Ž‡•Ǥ

ACOUNTS AND RECORDS

••‡••‡– ‹
 ‹• •—„•–ƒ–‹ƒŽŽ› ˆ‘…—•‡† ƒ”‘—† •‡ŽˆǦƒ••‡••‡–Ǥ ˜‡”› –ƒš’ƒ›‡” –Š‡”‡„› ‹• ‡š’‡…–‡† –‘ self-
ƒ••‡•• –Š‡ Ž‹ƒ„‹Ž‹–›ǡ ϐ‹Ž‡ –Š‡ ”‡–—”• ƒ† ’ƒ› –Š‡ –ƒš „› –Š‡ ʹͲ–Š ‘ˆ –Š‡ ˆ‘ŽŽ‘™‹‰ ‘–ŠǤ Š‡ ƒ—–Š‡–‹…‹–› ƒ†
…‘’Ž‡–‡‡•• ‘ˆ –Š‡ •ƒ‡ ‹• •—„Œ‡…– –‘ ƒ—†‹–•ǡ ‹•’‡…–‹‘ ƒ† –Šƒ– …ƒ•–• ƒ ”‡•’‘•‹„‹Ž‹–› —’‘ –Š‡ –ƒš’ƒ›‡” –‘
ƒ‹–ƒ‹–Š‡‡…‡••ƒ”›ƒ……‘—–•ƒ†”‡…‘”†•Ǥ
˜‡”› ”‡‰‹•–‡”‡† ’‡”•‘ ‹• ‡š’‡…–‡† –‘ ƒ‹–ƒ‹ –Š‡ ‡…‡••ƒ”› ƒ……‘—–• ƒ† ”‡…‘”†• ƒ– –Š‡ ’”‹…‹’ƒŽ ’Žƒ…‡ ‘ˆ
„—•‹‡••ƒ†–Š‡•‡”‡…‘”†•…‘—Ž†„‡‡Ž‡…–”‘‹…‘”ƒ—ƒŽǤ

Place of maintenance
‡…–‹‘͵ͷ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ–‡˜‡”›”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽƒ‹–ƒ‹„‘‘• ‘ˆ
ƒ……‘—–•ƒ–Š‹•’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••ƒ†™Š‡”‡‘”‡–Šƒ‘‡’Žƒ…‡‘ˆ„—•‹‡••‹••’‡…‹ϐ‹‡†‹–Š‡…‡”–‹ϐ‹…ƒ–‡
‘ˆ”‡‰‹•–”ƒ–‹‘ǡƒ–‡˜‡”›•—…Š’Žƒ…‡‘ˆ„—•‹‡••–‘‘Ǥ

Nature of records
‡…–‹‘͵ͷ‘ˆ‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ǣƒ‹–ƒ‹‹‰……‘—–•ƒ†–Š‡”‡…‘”†•
ȋͳȌ ˜‡”›”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‡‡’ƒ†ƒ‹–ƒ‹ǡƒ–Š‹•’”‹…‹’ƒŽ’Žƒ…‡‘ˆ„—•‹‡••ǡƒ•‡–‹‘‡†‹–Š‡
…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘ǡƒ–”—‡ƒ†…‘””‡…–ƒ……‘—–‘ˆȄ
ȋƒȌ ’”‘†—…–‹‘‘”ƒ—ˆƒ…–—”‡‘ˆ‰‘‘†•Ǣ
ȋ„Ȍ ‹™ƒ”†ƒ†‘—–™ƒ”†•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
ȋ…Ȍ •–‘…‘ˆ‰‘‘†•Ǣ
ȋ†Ȍ ‹’—––ƒš…”‡†‹–ƒ˜ƒ‹Ž‡†Ǣ
ȋ‡Ȍ ‘—–’—––ƒš’ƒ›ƒ„Ž‡ƒ†’ƒ‹†Ǣƒ†
ȋˆȌ •—…Š‘–Š‡”’ƒ”–‹…—Žƒ”•ƒ•ƒ›„‡’”‡•…”‹„‡†ǣ
 ”‘˜‹†‡† –Šƒ– ™Š‡”‡ ‘”‡ –Šƒ ‘‡ ’Žƒ…‡ ‘ˆ „—•‹‡•• ‹• •’‡…‹ϐ‹‡† ‹ –Š‡ …‡”–‹ϐ‹…ƒ–‡ ‘ˆ ”‡‰‹•–”ƒ–‹‘ǡ –Š‡
ƒ……‘—–•”‡Žƒ–‹‰–‘‡ƒ…Š’Žƒ…‡‘ˆ„—•‹‡•••ŠƒŽŽ„‡‡’–ƒ–•—…Š’Žƒ…‡•‘ˆ„—•‹‡••ǣ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡”‡‰‹•–‡”‡†’‡”•‘ƒ›‡‡’ƒ†ƒ‹–ƒ‹•—…Šƒ……‘—–•ƒ†‘–Š‡”’ƒ”–‹…—Žƒ”•‹
‡Ž‡…–”‘‹…ˆ‘”‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋʹȌ ˜‡”›‘™‡”‘”‘’‡”ƒ–‘”‘ˆ™ƒ”‡Š‘—•‡‘”‰‘†‘™‘”ƒ›‘–Š‡”’Žƒ…‡—•‡†ˆ‘”•–‘”ƒ‰‡‘ˆ‰‘‘†•ƒ†‡˜‡”›
–”ƒ•’‘”–‡”ǡ‹””‡•’‡…–‹˜‡‘ˆ™Š‡–Š‡”Š‡‹•ƒ”‡‰‹•–‡”‡†’‡”•‘‘”‘–ǡ•ŠƒŽŽƒ‹–ƒ‹”‡…‘”†•‘ˆ–Š‡…‘•‹‰‡”ǡ
…‘•‹‰‡‡ ƒ† ‘–Š‡” ”‡Ž‡˜ƒ– †‡–ƒ‹Ž• ‘ˆ –Š‡ ‰‘‘†• ‹ •—…Š ƒ‡” ƒ• ƒ› „‡ ’”‡•…”‹„‡†ǤŽ•‘ǡ –Š‡ 

—Ž‡•ǡʹͲͳ͹’”‡•…”‹„‡•–Š‡ˆ‘ŽŽ‘™‹‰”‡…‘”†•ǣ
 754 Lesson 15 Ȉ EP-TL

Ȉ
‘‘†•Ȁ•‡”˜‹…‡•‹’‘”–‡†
Ȉ —’’Ž‹‡• ƒ––”ƒ…–‹‰ ’ƒ›‡– ‘ˆ –ƒš‡• —†‡” ”‡˜‡”•‡ …Šƒ”‰‡ ‡…Šƒ‹• ƒŽ‘‰ ™‹–Š ƒŽŽ ƒ…‹ŽŽƒ”› ƒ†
Ȉ ”‡Žƒ–‡††‘…—‡–•
Ȉ ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ’‡”•‘•™Š‘Šƒ•”‡…‡‹˜‡†–Š‡‰‘‘†•Ȁ•‡”˜‹…‡•
Ȉ ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ’‡”•‘•–‘™Š‘Š‡Šƒ••—’’Ž‹‡†–Š‡‰‘‘†•Ȁ•‡”˜‹…‡•
Audit requirements
ƒ”Ž‹‡”‡…–‹‘͵ͷȋͷȌ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒŽ•‘ƒ†ƒ–‡•–Šƒ–‡˜‡”›”‡‰‹•–‡”‡†’‡”•‘—•–
‰‡– Š‹• ƒ……‘—–• ƒ—†‹–‡† „› ƒ Šƒ”–‡”‡† ……‘—–ƒ– ‘” ƒ ‘•– ……‘—–ƒ– ‹ˆ Š‹• ƒ‰‰”‡‰ƒ–‡ –—”‘˜‡” †—”‹‰ ƒ
‹ƒ…‹ƒŽ‡ƒ”‡š…‡‡†••Ǥʹ”‘”‡•Ǥ

Budget 2021 removes the requirement of getting a GST audit as well as the reconciliation
•–ƒ–‡‡–†‘‡Ȁ…‡”–‹ϐ‹‡†„›–Š‡•’‡…‹ϐ‹‡†’”‘ˆ‡••‹‘ƒŽ‹Ǥ‡Ǥǡƒ†Ǥ

‡…–‹‘͵ͷȋͷȌƒ†‡…–‹‘ͶͶ‘ˆ
…–ǡʹͲͳ͹ƒ”‡’”‘’‘•‡†–‘„‡ƒ‡†‡†‹ ‹ƒ…‡‹ŽŽǡʹͲʹͳǤ
—†‰‡–‘ ‡„”—ƒ”›ͲͳǡʹͲʹͳ‘‹––‡†‡…–‹‘͵ͷȋͷȌƒ†•—„•–‹–—–‡†‡…–‹‘ͶͶȏ„›‡…–‹‘ͳͲͳƬ
ͳͲʹ‘ˆ–Š‡ ‹ƒ…‡…–ǡʹͲʹͳ”‡•’‡…–‹˜‡Ž›Ȑ‘ˆ–Š‡
…–ǡʹͲͳ͹ǡ•‘ƒ•–‘”‡‘˜‡–Š‡ƒ†ƒ–‘”›
”‡“—‹”‡‡– ‘ˆ ˆ—”‹•Š‹‰ ƒ ‡…‘…‹Ž‹ƒ–‹‘ –ƒ–‡‡– ȋ
ǦͻȌ †—Ž› ƒ—†‹–‡† „› ƒ ”ƒ…–‹…‹‰
Šƒ”–‡”‡†……‘—–ƒ–•‘”‘•–……‘—–ƒ–•ƒ†–‘’”‘˜‹†‡ˆ‘”ϐ‹Ž‹‰‘ˆ–Š‡—ƒŽ‡–—”ȋ
ǦͻȌ
‘•‡ŽˆǦ…‡”–‹ϐ‹…ƒ–‹‘„ƒ•‹•™‹–Šƒ”‡…‘…‹Ž‹ƒ–‹‘•–ƒ–‡‡–Ǥ

‘™™Ǥ‡Ǥˆ—‰—•–ͳǡʹͲʹͳ‡…–‹‘ͳͳͲƒ†ͳͳͳ‘ˆ–Š‡ ‹ƒ…‡…–ǡʹͲʹͳ‹•‘–‹ϐ‹‡†˜‹ƒ‘–‹ϐ‹…ƒ–‹‘‘ǤʹͻȀʹͲʹͳ
‡–”ƒŽƒšƒ–‡† —Ž›͵ͲǡʹͲʹͳ
—…Š’‡”•‘Šƒ•–Š‡ƒ††‹–‹‘ƒŽ”‡•’‘•‹„‹Ž‹–›‘ˆˆ—”‹•Š‹‰ƒŽ‘‰™‹–Š–Š‡ƒ—ƒŽ”‡–—”ǣ
Ȉ —†‹–‡†ƒ—ƒŽƒ……‘—–•Ǣƒ†
Ȉ ‡…‘…‹Ž‹ƒ–‹‘ •–ƒ–‡‡– †—Ž› …‡”–‹ϐ‹‡† ™Š‹…Š ”‡…‘…‹Ž‡• –Š‡ ˜ƒŽ—‡ ‘ˆ •—’’Ž‹‡• †‡…Žƒ”‡† ‹ –Š‡ —ƒŽ
‡–—”™‹–Š–Š‡—ƒŽ—†‹–‡† ‹ƒ…‹ƒŽ–ƒ–‡‡–•Ǥ
”‘˜‹†‡†–Šƒ–‡˜‡”›”‡‰‹•–‡”‡†’‡”•‘™Š‘•‡ƒ‰‰”‡‰ƒ–‡–—”‘˜‡”†—”‹‰–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲͳͺǦʹͲͳͻ‡š…‡‡†•ϐ‹˜‡
…”‘”‡”—’‡‡••ŠƒŽŽ‰‡–Š‹•ƒ……‘—–•ƒ—†‹–‡†ƒ••’‡…‹ϐ‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘͵ͷƒ†Š‡•ŠƒŽŽˆ—”‹•Š
ƒ…‘’›‘ˆƒ—†‹–‡†ƒ—ƒŽƒ……‘—–•ƒ†ƒ”‡…‘…‹Ž‹ƒ–‹‘•–ƒ–‡‡–ǡ†—Ž›…‡”–‹ϐ‹‡†ǡ‹ 
Ǧͻˆ‘”–Š‡ϐ‹ƒ…‹ƒŽ
›‡ƒ”ʹͲͳͺǦʹͲͳͻǡ‡Ž‡…–”‘‹…ƒŽŽ›–Š”‘—‰Š–Š‡…‘‘’‘”–ƒŽ‡‹–Š‡”†‹”‡…–Ž›‘”–Š”‘—‰Šƒ ƒ…‹Ž‹–ƒ–‹‘‡–”‡‘–‹ϐ‹‡†
„›–Š‡‘‹••‹‘‡”Ǥȋ‹•‡”–‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘—„‡”ͳ͸ȀʹͲʹͲ†–ʹ͵ǤͲ͵ǤʹͲʹͲȌ
”‘˜‹†‡†–Šƒ–‘–Š‹‰…‘–ƒ‹‡†‹–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽƒ’’Ž›–‘ƒ›†‡’ƒ”–‡–‘ˆ–Š‡‡–”ƒŽ
‘˜‡”‡– ‘”ƒ
–ƒ–‡
‘˜‡”‡–‘”ƒŽ‘…ƒŽƒ—–Š‘”‹–›ǡ™Š‘•‡„‘‘•‘ˆƒ……‘—–ƒ”‡•—„Œ‡…––‘ƒ—†‹–„›–Š‡‘’–”‘ŽŽ‡”ƒ† —†‹–‘”Ǧ

‡‡”ƒŽ‘ˆ†‹ƒ‘”ƒƒ—†‹–‘”ƒ’’‘‹–‡†ˆ‘”ƒ—†‹–‹‰–Š‡ƒ……‘—–•‘ˆŽ‘…ƒŽƒ—–Š‘”‹–‹‡•—†‡”ƒ›Žƒ™ˆ‘” –Š‡–‹‡

„‡‹‰‹ˆ‘”…‡Ǥ

Period of retention of accounts [Section 36]

˜‡”›–ƒš’ƒ›‡”•ŠƒŽŽƒ‹–ƒ‹–Š‡„‘‘•‘ˆƒ……‘—–•ƒ†ƒ…‹ŽŽƒ”›”‡…‘”†•ǡ—–‹Ž–Š‡‡š’‹”›‘ˆ͹ʹ‘–Š•ǡˆ”‘–Š‡
†—‡†ƒ–‡‘ˆˆ—”‹•Š‹‰–Š‡ƒ—ƒŽ”‡–—”ˆ‘”–Š‡›‡ƒ”–‘™Š‹…Š–Š‡”‡…‘”†•”‡Žƒ–‡Ǥ
‘™‡˜‡”ǡƒ”‡‰‹•–‡”‡†’‡”•‘™Š‘‹•’ƒ”–›–‘ƒƒ’’‡ƒŽȀƒ›‘–Š‡”’”‘…‡‡†‹‰•ǡ„‡ˆ‘”‡ƒ›ƒ—–Š‘”‹–›Ȁ–”‹„—ƒŽǡ
•ŠƒŽŽŠƒ˜‡–‘ƒ‹–ƒ‹–Š‡ƒ……‘—–•ƒ†„‘‘•Ȁ”‡…‘”†•ǡ’‡”–ƒ‹‹‰–‘–Š‡ƒ––‡”•‘ˆ•—…Šƒ’’‡ƒŽˆ‘”ƒ‹‹—
’‡”‹‘†‘ˆͳ›‡ƒ”ƒˆ–‡”†‹•’‘•ƒŽ‘ˆ•—…Šƒ’’‡ƒŽȀ”‡˜‹•‹‘ƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 755

ƒ†ƒ–‘”›”‡…‘”†••ŠƒŽŽ„‡ These records may also be maintained

maintained by registered person by registered person

”‘†—…–‹‘‡…‘”†•Ǧƒ™ƒ–‡”‹ƒŽ•ǡ
‘‘†•Ȁ•‡”˜‹…‡•‹’‘”–‡†
Ǣƒ† ‹‹•Š‡†
‘‘†•

™ƒ”†•—’’Ž‹‡• —’’Ž‹‡•ƒ––”ƒ…–‹‰’ƒ›‡–‘ˆ–ƒš‡•
—†‡””‡˜‡”•‡…Šƒ”‰‡‡…Šƒ‹•ƒŽ‘‰
™‹ŽŽƒŽŽƒ…‹ŽŽƒ”›ƒ†”‡Žƒ–‡††‘…—‡–•
™ƒ”†•—’’Ž‹‡•

—–™ƒ”†•—’’Ž‹‡• ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ’‡”•‘•Š‡Šƒ•
”‡…‡‹˜‡†–Š‡‰‘‘†•Ȁ•‡”˜‹…‡•
ƒš‡•ƒ‹†

ƒ‡•ƒ†ƒ††”‡••‡•‘ˆ’‡”•‘•–‘
ƒ˜ƒ‹Ž‡†
™Š‘Š‡Šƒ••—’’Ž‹‡†–Š‡‰‘‘†•Ȁ
•‡”˜‹…‡•
—–’—––ƒšŽ‹ƒ„‹Ž‹–‹‡•

Š‡•‡„‘‘•‘ˆƒ……‘—–•ƒ†ƒ…‹ŽŽƒ”›”‡…‘”†••ŠƒŽŽ„‡ƒ‹–ƒ‹‡†‘–Ž‡••–Š‡͹ʹ‘–Š•ˆ”‘–Š‡†—‡†ƒ–‡‘ˆ
ˆ—”‹•Š‹‰–Š‡ƒ—ƒŽ”‡–—”ˆ‘”–Š‡›‡ƒ””‡…‘”†•”‡Žƒ–‡Ǥ

ELECTRONIC WAY BILLS

Š‡
‘˜‡”‡–ƒ›”‡“—‹”‡–Š‡’‡”•‘‹…Šƒ”‰‡‘ˆƒ…‘˜‡›ƒ…‡…ƒ””›‹‰ƒ›…‘•‹‰‡–‘ˆ‰‘‘†•‘ˆ˜ƒŽ—‡
‡š…‡‡†‹‰–Š‡’”‡•…”‹„‡†ƒ‘—–•ǡ–‘…ƒ””›™‹–ŠŠ‹•‡Žˆ•—…Š†‘…—‡–•ƒ††‡˜‹…‡•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Š‡”‡ ƒ› •—…Š …‘˜‡›ƒ…‡ ‹• ‹–‡”…‡’–‡† „› –Š‡ ’”‘’‡” ‘ˆϐ‹…‡”ǡ Š‡ ƒ› ”‡“—‹”‡ –Š‡ ’‡”•‘ ‹ …Šƒ”‰‡ ‘ˆ –Š‡
…‘˜‡›ƒ…‡–‘’”‘†—…‡–Š‡†‘…—‡–•Ƭ†‡˜‹…‡•ˆ‘”˜‡”‹ϐ‹…ƒ–‹‘ƒ†–Šƒ–’‡”•‘–Š‡Šƒ•–Š‡†—–›–‘…‘‘’‡”ƒ–‡ƒ†
ƒŽŽ‘™–Š‡‹•’‡…–‹‘Ǥ
–‹•ˆ‘”–Š‡•ƒ‡”‡ƒ•‘–Šƒ–Ž‡…–”‘‹…ƒ›‹ŽŽ•ȋǦ™ƒ›„‹ŽŽ•ȌŠƒ˜‡„‡‡’”‡•…”‹„‡†Ǥ—Ž‡ͳ͵ͺ‘ˆ–Š‡
—Ž‡•ǡ
ʹͲͳ͹•–‹’—Žƒ–‡•ƒ•—†‡”ǡ™‹–Š”‡‰ƒ”†–‘–Š‡Ǧƒ›‹ŽŽ•ǣ
˜‡”› ”‡‰‹•–‡”‡† ’‡”•‘ ™Š‘ …ƒ—•‡• ‘˜‡‡– ‘ˆ ‰‘‘†• ‘ˆ …‘•‹‰‡– ˜ƒŽ—‡ ‰”‡ƒ–‡” –Šƒ •Ǥ ͷͲǡͲͲͲ
™Š‡–Š‡” ˆ‘” •—’’Ž› ‘” ‘–Š‡”™‹•‡ ‘” †—‡ –‘ –Š‡ ‹™ƒ”† •—’’Ž› ˆ”‘ ƒ —”‡‰‹•–‡”‡† ’‡”•‘ǡ •ŠƒŽŽ „‡ˆ‘”‡
…‘‡…‡‡–‘ˆ•—…Š‘˜‡‡–ǡˆ—”‹•Š–Š‡‡…‡••ƒ”›‹ˆ‘”ƒ–‹‘‹–Š‡’”‡•…”‹„‡†ˆ‘”ǡ‡Ž‡…–”‘‹…ƒŽŽ› ‘
–Š‡’‘”–ƒŽǤ
Š‡”‡–Š‡Ǧ™ƒ›„‹ŽŽŠƒ•ǯ–„‡‡‰‡‡”ƒ–‡†ƒ†–Š‡…‘•‹‰‡–‹•Šƒ†‡†‘˜‡”–‘ƒ–”ƒ•’‘”–‡”ǡ–Š‡–”ƒ•’‘”–‡” ™‹ŽŽ
‰‡‡”ƒ–‡ –Š‡ Ǧ™ƒ› „‹ŽŽ ‘ –Š‡ „ƒ•‹• ‘ˆ ‹ˆ‘”ƒ–‹‘ ˆ—”‹•Š‡† ‘ –Š‡ ’‘”–ƒŽ „› –Š‡ ”‡‰‹•–‡”‡† ’‡”•‘Ǥ ’‘ –Š‡
‰‡‡”ƒ–‹‘‘ˆ–Š‡Ǧ™ƒ›„‹ŽŽǡƒ—‹“—‡Ǧ™ƒ›„‹ŽŽ—„‡”ȋȌǡ‹•‰‡‡”ƒ–‡†ƒ†ƒ†‡ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡ •—’’Ž‹‡”ǡ
–Š‡”‡…‹’‹‡–ƒ†–Š‡–”ƒ•’‘”–‡”ǤŠ‡”‡—Ž–‹’Ž‡…‘•‹‰‡–•ƒ”‡„‡‹‰…ƒ””‹‡†ǡƒ–”ƒ•’‘”–‡”ƒ› ƒŽ•‘‰‡‡”ƒ–‡
ƒ…‘•‘Ž‹†ƒ–‡†Ǧ™ƒ›„‹ŽŽǤ
‘”–Š‡’—”’‘•‡‘ˆ…ƒŽ…—Žƒ–‹‰–Š‡…‘•‹‰‡–˜ƒŽ—‡‘ˆ‰‘‘†•ǡ–Š‡˜ƒŽ—‡ƒ•†‡…Žƒ”‡†‹ƒ‹˜‘‹…‡ǡƒ„‹ŽŽ‘ˆ•—’’Ž›
‘”ƒ†‡Ž‹˜‡”›…ŠƒŽŽƒ•ŠƒŽŽ‹…Ž—†‡‹…Ž—†‡•–Š‡‡–”ƒŽ–ƒšǡ–ƒ–‡‘”‹‘–‡””‹–‘”›–ƒšǡ‹–‡‰”ƒ–‡†–ƒšƒ†…‡••…Šƒ”‰‡†ǡ
‹ˆƒ›ǡ‹–Š‡†‘…—‡–ƒ†•ŠƒŽŽ‡š…Ž—†‡–Š‡˜ƒŽ—‡‘ˆ‡š‡’–•—’’Ž›‘ˆ‰‘‘†•™Š‡”‡–Š‡‹˜‘‹…‡ ‹•‹••—‡†‹”‡•’‡…–
‘ˆ„‘–Š‡š‡’–ƒ†–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•Ǥ
 756 Lesson 15 Ȉ EP-TL

Š‡Ǧ™ƒ›„‹ŽŽ•‘‰‡‡”ƒ–‡†‹•˜ƒŽ‹†ˆ‘”‘‡†ƒ›‹ˆ–Š‡†‹•–ƒ…‡‹˜‘Ž˜‡†‹•Ž‡••–Šƒ‘”‡“—ƒŽ–‘ͳͲͲ•ǡƒ† ‘‡
ƒ††‹–‹‘ƒŽ †ƒ› ˆ‘”‡˜‡”› ͳͲͲ • ‘˜‡” ƒ† ƒ„‘˜‡Ǥ …ƒ•‡ ‘ˆ ‘˜‡” †‹‡•‹‘ƒŽ …ƒ”‰‘‘”—Ž–‹‘†ƒŽ•Š‹’‡–‹
™Š‹…Šƒ–Ž‡ƒ•–‘‡Ž‡‰‹˜‘Ž˜‡•–”ƒ•’‘”–„›•Š‹’ǡ–Š‡˜ƒŽ‹†‹–›•ŠƒŽŽ„‡‘‡†ƒ›ˆ‘”ϐ‹”•–ʹͲƒ†‘‡ƒ††‹–‹‘ƒŽ†ƒ›
ˆ‘”‡˜‡”›ʹͲ‘”’ƒ”––Š‡”‡‘ˆǤ
Ǧ™ƒ›„‹ŽŽ‰‡‡”ƒ–‹‘‹•„Ž‘…‡†‹”‡•’‡…–‘ˆˆ‘ŽŽ‘™‹‰ǣ
ȋƒȌ …ƒ•‡‘ˆƒ…‘’‘•‹–‹‘•—’’Ž‹‡”—Ȁ•ͳͲ‘ˆ
…–‘”ƒ’‡”•‘ƒ˜ƒ‹Ž‹‰–Š‡„‡‡ϐ‹–‘ˆ”‡•—’–‹˜‡Ž‡˜›
•…Š‡‡ ƒ• ’‡” ‘–‹ϐ‹…ƒ–‹‘ —„‡” ͲʹȀʹͲͳͻǡ ™Š‘ †‘‡• ‘– ϐ‹Ž‡ –ƒ–‡‡– ‹ ‘”
 Ͳͺ ˆ‘” –™‘
…‘•‡…—–‹˜‡“—ƒ”–‡”•Ǥ
ȋ„Ȍ ’‡”•‘‘–Š‡”–Šƒƒ…‘’‘•‹–‹‘•—’’Ž‹‡”™Š‘†‘‡•‘–ϐ‹Ž‡
͵ˆ‘”…‘•‡…—–‹˜‡’‡”‹‘†‘ˆ–™‘‘–Š•
‘”™Š‘†‘‡•‘–ϐ‹Ž‡
Ǧͳˆ‘”ƒ›ʹ‘–Š•‘”“—ƒ”–‡”•ƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ

RETURNS

As’‡”Žƒ™ǡƒ–ƒš’ƒ›‡”‹•”‡“—‹”‡†–‘ϐ‹Ž‡ƒ†‘…—‡–™‹–Š–Š‡ƒ†‹‹•–”ƒ–‹˜‡ƒ—–Š‘”‹–›™Š‹…Š‹•…‘‘Ž›‘™ƒ•
ƒDz”‡–—”dzǤŠ‡”‡ƒ”‡˜ƒ”‹‘—•–›’‡•‘ˆ”‡–—”•—†‡”
Ž‹‡–Š‡ ‹”•–”‡–—”ǡ‘–ŠŽ›”‡–—”ǡ‡–—”ˆ‘”‘’‘•‹-
–‹‘…Š‡‡ǡ”‡–—”ǡ‡–—”ˆ‘”’—–‡”˜‹…‡‹•–”‹„—–‘”—ƒŽ”‡–—”ƒ†ϐ‹ƒŽ”‡–—”Ǥ†‡”
ǡ‡˜‡”›–Š‹‰
‹•‘Ž‹‡ƒ†‹•—’†ƒ–‡†ƒ†ƒ–…Š‡†”‡‰—Žƒ”Ž›Ǥˆƒ„—•‹‡••‹•†‘‡ˆ”‘‘ˆϐ‹…‡•‹—Ž–‹’Ž‡•–ƒ–‡•ǡ–Š‡—„‡”‘ˆ
”‡–—”•™‹ŽŽ‰‘—’ƒ……‘”†‹‰Ž›ǤŠ‡‡–‹”‡’”‘…‡†—”‡‘ˆϐ‹ŽŽ‹‰”‡–—”•…ƒ„‡†‹˜‹†‡†‹–‘ͷ’ƒ”–•ƒ•ˆ‘ŽŽ‘™•ǣ

Final ‡…–‹ϔ‹…ƒ–‹‘ Matching of claim

Submission Matching of
acceptance in reduction in
of return of ITC discrepancies
of ITC output tax liability
in ITC

Furnishing details of outward supplies [Section 37]

‡…–‹‘͵͹‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹‡–‹‘•–Šƒ––Š‡†‡–ƒ‹Ž•‘ˆ‘—–™ƒ”†•—’’Ž‹‡•ȋˆ‘”
 ͳȌǡ‘ˆ
‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡƒ”‡”‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†„›‡˜‡”›”‡‰‹•–‡”‡†’‡”•‘ǡ‹…Ž—†‹‰…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘ǡ„—–
‡š…Ž—†‹‰ǣ
ƒȌ ’—–‡”˜‹…‡‹•–”‹„—–‘”ȋȌ
„Ȍ ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘
…Ȍ ‡”•‘’ƒ›‹‰–ƒš—†‡”…‘’‘•‹–‹‘•…Š‡‡
†Ȍ ‡”•‘‡ˆˆ‡…–‹‰
‡Ȍ ‡”•‘‡ˆˆ‡…–‹‰
ˆȌ —’’Ž‹‡”‘ˆŽ‹‡ˆ‘”ƒ–‹‘ƒ†ƒ–ƒƒ•‡……‡••Ȁ‡–”‹‡˜ƒŽ‡”˜‹…‡•ȋȌ
”‘˜‹†‡†–Šƒ––Š‡”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†–‘ˆ—”‹•Š–Š‡†‡–ƒ‹Ž•‘ˆ‘—–™ƒ”†•—’’Ž‹‡•†—”‹‰–Š‡’‡”‹‘†
ˆ”‘–Š‡‡Ž‡˜‡–Š†ƒ›–‘–Š‡ϐ‹ˆ–‡‡–Š†ƒ›‘ˆ–Š‡‘–Š•—……‡‡†‹‰–Š‡–ƒš’‡”‹‘†ǣ
”‘˜‹†‡†ˆ—”–Š‡”–Šƒ––Š‡‘‹••‹‘‡”ƒ›ǡˆ‘””‡ƒ•‘•–‘„‡”‡…‘”†‡†‹™”‹–‹‰ǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ‡š–‡†–Š‡–‹‡
Ž‹‹–ˆ‘”ˆ—”‹•Š‹‰•—…Š†‡–ƒ‹Ž•ˆ‘”•—…Š…Žƒ••‘ˆ–ƒšƒ„Ž‡’‡”•‘•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†–Š‡”‡‹ǣ
”‘˜‹†‡†ƒŽ•‘–Šƒ–ƒ›‡š–‡•‹‘‘ˆ–‹‡Ž‹‹–‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”‘ˆ–ƒ–‡–ƒš‘”‘‹••‹‘‡”‘ˆ‹‘
–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡†‡‡‡†–‘„‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”Ǥ

Furnishing details of inward supplies [Section 38]

‡…–‹‘͵ͺ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•–ƒš…–ǡʹͲͳ͹‡–‹‘•–Šƒ––Š‡†‡–ƒ‹Ž•‘ˆ‹™ƒ”†•—’’Ž‹‡•ȋˆ‘”
ʹȌǡ‘ˆ
‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–Šǡƒ”‡”‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†„›‡˜‡”›”‡‰‹•–‡”‡†’‡”•‘ǡ‹…Ž—†‹‰…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘ǡ
„—–‡š…Ž—†‹‰ǣ
ƒȌ ’—–‡”˜‹…‡‹•–”‹„—–‘”ȋȌ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 757

„Ȍ ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘
…Ȍ ‡”•‘’ƒ›‹‰–ƒš—†‡”…‘’‘•‹–‹‘•…Š‡‡
†Ȍ ‡”•‘‡ˆˆ‡…–‹‰
‡Ȍ ‡”•‘‡ˆˆ‡…–‹‰
ˆȌ —’’Ž‹‡”‘ˆŽ‹‡ˆ‘”ƒ–‹‘ƒ†ƒ–ƒƒ•‡……‡••Ȁ‡–”‹‡˜ƒŽ‡”˜‹…‡•ȋȌ
ƒ–…Š‹‰
Š‡’”‘…‡••‘ˆƒ–…Š‹‰„‡‰‹•ƒˆ–‡”–Š‡†—‡†ƒ–‡•ˆ‘”ϐ‹Ž‹‰–Š‡”‡–—”–Šƒ–‹•ʹͲ–Š‘ˆ‡˜‡”›‘–ŠǤŠ‹•‹•
…ƒ””‹‡† ‘—– „›–Š‡’‘”–ƒŽǡ
ǤŠ‡†‡–ƒ‹Ž•‘ˆ‡˜‡”›‹™ƒ”†•—’’Ž›’‡””‡–—”ϐ‹Ž‡†„›”‡…‹’‹‡–˜‹†‡
ʹ‹•
ƒ–…Š‡†™‹–Š–Š‡‘—–™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•ǯ”‡–—”ϐ‹Ž‡†„›•—’’Ž‹‡”˜‹†‡
ͳǤ…‡–Š‡†‡–ƒ‹Ž•ƒ–…Šǡ–Š‡
…Žƒ‹‡†„›–Š‡”‡…‹’‹‡–‹•…‘•‹†‡”‡†˜ƒŽ‹†Ǥ ƒ‹Ž—”‡–‘†‡’‘•‹––Š‡–ƒš‹‡†‹ƒ–‡Ž›„›–Š‡–ƒšƒ„Ž‡’‡”•‘„›–Š‡†—‡
†ƒ–‡ ˆƒ‹Ž—”‡–‘ϐ‹Ž‡˜ƒŽ‹†”‡–—”™‹–Š‹–‹‡–Š‡”‡ˆ‘”‡…ƒ†‡›–Š‡”‡…‹’‹‡–Š‹•–‹‡Ž›Ǥš…‡••…Žƒ‹‡†‹•
ƒ††‡†„ƒ…–‘–Š‡–ƒšŽ‹ƒ„‹Ž‹–›‘ˆ–Š‡”‡…‹’‹‡–‹–Š‡ˆ‘ŽŽ‘™‹‰‘–ŠǤ

Š‡…‘…‡’–‘ˆ”‡˜‹•‡†”‡–—”•‹•‘–’”‘˜‹†‡†‹–Š‡
”‡–—””—Ž‡•ƒ†ƒ……‘”†‹‰Ž›ǡ–Š‡„—•‹‡••‡•™‘—Ž† Šƒ˜‡
–‘ ƒ˜ƒ‹Ž ƒ† ”‡Ǧƒ˜ƒ‹Žǡ –Š‡ ‹•ƒ–…Š‡† …”‡†‹– „› ™ƒ› ‘ˆ …”‡†‹– ‘–‡•ǡ †‡„‹– ‘–‡•ǡ ƒ† •—’’Ž‡‡–ƒ”› ‹˜‘‹…‡•Ǥ
Š‡”‡–—””—Ž‡•Šƒ˜‡’”‡•…”‹„‡††‹ˆˆ‡”‡–ˆ‘”•–‘„‡ϐ‹Ž‡†„›ƒ”‡‰‹•–‡”‡†’‡”•‘Ǥ

•†‹ƒ‹•‘˜‹‰–‘™ƒ”†•†‹‰‹–‹•ƒ–‹‘ǡ
Šƒ•’”‘˜‹†‡†ƒ‡ƒ•›ƒ†•‹’Ž‡™ƒ›‘ˆ’ƒ›‡–‘ˆ–ƒš‡•Ǥ†‡”

”‡‰‹‡ǡƒŽŽ–Š‡–ƒš’ƒ›‡”•‰‡––Š”‡‡‡Ž‡…–”‘‹…Ž‡†‰‡”•ƒ‡Ž›Ǧ…ƒ•Š‡†‰‡”ǡǦ…”‡†‹–‡†‰‡”ƬǦŽ‹ƒ„‹Ž‹–›‡†‰‡”
–Š”‘—‰Š–Š‡‹”
’”‘ϐ‹Ž‡Ǥ
Š‡Ž‡…–”‘‹…ƒ•Š‡†‰‡”…‘–ƒ‹•ƒ•—ƒ”›‘ˆƒŽŽ’ƒ›‡–•ƒ†‡„›ƒ–ƒš’ƒ›‡”ǤŠ‹•Ž‡†‰‡”‹•ƒ‹–ƒ‹‡†‘
–Š‡
‘”–ƒŽǤ
Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘Ͷͻ•ŠƒŽŽ„‡ƒ‹–ƒ‹‡†‹ 
ǦͲͷˆ‘”‡ƒ…Š
’‡”•‘ǡŽ‹ƒ„Ž‡–‘’ƒ›–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡŽƒ–‡ˆ‡‡‘”ƒ›‘–Š‡”ƒ‘—–ǡ‘–Š‡‘‘‘”–ƒŽˆ‘”…”‡†‹–‹‰–Š‡
ƒ‘—–†‡’‘•‹–‡†ƒ††‡„‹–‹‰–Š‡’ƒ›‡––Š‡”‡ˆ”‘–‘™ƒ”†•–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡‘”ƒ›‘–Š‡”ƒ‘—–Ǥ
Š—•ǡ’ƒ›‡–…ƒ„‡ƒ†‡‹…ƒ•Š„›†‡„‹–‹‰–Š‡‡Ǧ…ƒ•ŠŽ‡‰‡”ƒ‹–ƒ‹‡†‘–Š‡…‘‘’‘”–ƒŽǤ‘‡›…ƒ„‡†‡-
’‘•‹–‡†‹–Š‡ƒ•Š‡†‰‡”„›†‹ˆˆ‡”‡–‘†‡•ǡƒ‡Ž›ǡǦƒ›‡–ȋ–‡”‡–ƒ‹‰ǡ”‡†‹–ƒ”†ǡ‡„‹–ƒ”†ȌǢ‡ƒŽ
‹‡
”‘••‡––Ž‡‡–ȋ
ȌȀƒ–‹‘ƒŽŽ‡…–”‘‹… —†”ƒ•ˆ‡”ȋ ȌǢ˜‡”–Š‡‘—–‡”ƒ›‡–‹„”ƒ…Š‡•
‘ˆƒ•—–Š‘”‹œ‡†ȋˆ‘”†‡’‘•‹–•—’–‘–‡–Š‘—•ƒ†”—’‡‡•’‡”…ŠƒŽŽƒ’‡”–ƒš’‡”‹‘†ǡ„›…ƒ•Šǡ…Š‡“—‡‘”†‡ƒ†
†”ƒˆ–Ȍ–‘ƒ……‡’–†‡’‘•‹–‘ˆ
Ǥ
…ŠƒŽŽƒ‹ 
ǦͲ͸‹•”‡“—‹”‡†–‘„‡‰‡‡”ƒ–‡†ƒ†–Š‡†‡–ƒ‹Ž•‘ˆ–Š‡ƒ‘—––‘„‡†‡’‘•‹–‡†–‘™ƒ”†•
–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡•‘”ƒ›‘–Š‡”ƒ‘—–™‹ŽŽ„‡‡–‡”‡†‹–Š‡…ŠƒŽŽƒǤŠƒŽŽƒ‹ 
ǦͲ͸‰‡‡”ƒ–-
‡†ƒ––Š‡‘‘‘”–ƒŽ•ŠƒŽŽ„‡˜ƒŽ‹†ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹ˆ–‡‡†ƒ›•Ǥ•—……‡••ˆ—Ž…”‡†‹–‘ˆ–Š‡ƒ‘—–‹–Š‡‡–”ƒŽ
Ȁ–ƒ–‡
‘˜‡”‡–ƒ……‘—–ǡƒŠƒŽŽƒ†‡–‹ϐ‹…ƒ–‹‘—„‡”ȋȌ‹•‰‡‡”ƒ–‡†„›–Š‡…‘ŽŽ‡…–‹‰„ƒǡ™Š‹…Š™‹ŽŽ
„‡‹†‹…ƒ–‡†‘–Š‡…ŠƒŽŽƒǤŠ‹•ƒ‘—–™‹ŽŽ–Š‡„‡…”‡†‹–‡†–‘–Š‡Ž‡…–”‘‹…ƒ•Š‡†‰‡”‘ˆ–Š‡–ƒšƒ„Ž‡’‡”•‘
ƒ†‘”‡…‡‹’–‘ˆ–Š‡ˆ”‘–Š‡…‘ŽŽ‡…–‹‰„ƒǡ–Š‹•ƒ‘—–™‹ŽŽ–Š‡•–ƒ†…”‡†‹–‡†–‘–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”
‘ˆ–Š‡’‡”•‘‘™Š‘•‡„‡ŠƒŽˆ–Š‡’ƒ›‡–™ƒ•†‡’‘•‹–‡†–‘–Š‡…”‡†‹–‘ˆ–Š‡
‘˜‡”‡–ǤŠ‡ƒ‘—–ƒ˜ƒ‹Žƒ„Ž‡
—†‡”ƒ›Š‡ƒ†‹–Š‡Ž‡…–”‘‹…ƒ•Š‡†‰‡”ȋ
Ȁ
Ȁ
Ȍ…ƒ‘–„‡—–‹Ž‹•‡†ˆ‘”†‹•…Šƒ”‰‹‰–Š‡Ž‹ƒ„‹Ž‹–›
—†‡”ƒ›‘–Š‡”Š‡ƒ†Ǥ
ƒ—ƒŽŠƒŽŽƒ•ƒ”‡‘–ƒŽŽ‘™‡†—†‡”–Š‡
‡‰‹‡ƒ†–Š—•ǡ‹–‹•ƒ†ƒ–‘”›–‘…”‡ƒ–‡–Š‡…ŠƒŽŽƒ•‘Ž‹‡‘
–Š‡
’‘”–ƒŽǤ

Payment of tax, interest, penalty and other amounts [Section 49]

ȋͳȌ ˜‡”›†‡’‘•‹–ƒ†‡–‘™ƒ”†•–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡‘”ƒ›‘–Š‡”ƒ‘—–„›ƒ’‡”•‘„›‹–‡”‡–„ƒ‹‰ ‘”
„› —•‹‰ …”‡†‹– ‘” †‡„‹– …ƒ”†• ‘” ƒ–‹‘ƒŽ Ž‡…–”‘‹… —† ”ƒ•ˆ‡” ‘” ‡ƒŽ ‹‡
”‘•• ‡––Ž‡‡– ‘” „›
•—…Š‘–Š‡”‘†‡ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†”‡•–”‹…–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†ǡ•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡
‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”‘ˆ•—…Š’‡”•‘–‘„‡ƒ‹–ƒ‹‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
 758 Lesson 15 Ȉ EP-TL

ȋʹȌ Š‡‹’—––ƒš…”‡†‹–ƒ••‡ŽˆǦƒ••‡••‡†‹–Š‡”‡–—”‘ˆƒ”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽ„‡…”‡†‹–‡†–‘Š‹•‡Ž‡…–”‘‹…
…”‡†‹– Ž‡†‰‡”ǡ ‹ ƒ……‘”†ƒ…‡ ™‹–Š •‡…–‹‘ Ͷͳ ‘” •‡…–‹‘ Ͷ͵ǡ –‘ „‡ ƒ‹–ƒ‹‡† ‹ •—…Š ƒ‡” ƒ• ƒ› „‡
’”‡•…”‹„‡†Ǥ
ȋ͵Ȍ Š‡ ƒ‘—– ƒ˜ƒ‹Žƒ„Ž‡ ‹ –Š‡ ‡Ž‡…–”‘‹… …ƒ•Š Ž‡†‰‡” ƒ› „‡ —•‡† ˆ‘” ƒ‹‰ ƒ› ’ƒ›‡– –‘™ƒ”†• –ƒšǡ
‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡•‘”ƒ›‘–Š‡”ƒ‘—–’ƒ›ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–‘”–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”
‹•—…Šƒ‡”ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ†™‹–Š‹•—…Š–‹‡ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋͶȌ Š‡ƒ‘—–ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ƒ›„‡—•‡†ˆ‘”ƒ‹‰ƒ›’ƒ›‡––‘™ƒ”†•‘—–’—–
–ƒš—†‡”–Š‹•…–‘”—†‡”–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–‹•—…Šƒ‡”ƒ†•—„Œ‡…––‘•—…Š
…‘†‹–‹‘•ƒ†™‹–Š‹•—…Š–‹‡ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
ȋͷȌ Š‡ƒ‘—–‘ˆ‹’—––ƒš…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‘ˆ–Š‡”‡‰‹•–‡”‡†’‡”•‘‘ƒ……‘—–‘ˆȂ
ȋƒȌ ‹–‡‰”ƒ–‡†–ƒš•ŠƒŽŽϐ‹”•–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšƒ†–Š‡ƒ‘—–”‡ƒ‹‹‰ǡ‹ˆƒ›ǡ
ƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•–Š‡’ƒ›‡–‘ˆ‡–”ƒŽ–ƒšƒ†–ƒ–‡–ƒšǡ‘”ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹‘–‡””‹–‘”›
–ƒšǡ‹–Šƒ–‘”†‡”Ǣ
ȋ„Ȍ –Š‡‡–”ƒŽ–ƒš•ŠƒŽŽϐ‹”•–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‡–”ƒŽ–ƒšƒ†–Š‡ƒ‘—–”‡ƒ‹‹‰ǡ‹ˆƒ›ǡ
ƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•–Š‡’ƒ›‡–‘ˆ–‡‰”ƒ–‡†–ƒšǢ
ȋ…Ȍ –Š‡–ƒ–‡–ƒš•ŠƒŽŽϐ‹”•–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ–ƒ–‡–ƒšƒ†–Š‡ƒ‘—–”‡ƒ‹‹‰ǡ‹ˆƒ›ǡƒ›
„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ–‡‰”ƒ–‡†–ƒšǢ
 ”‘˜‹†‡†–Šƒ––Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ–ƒ–‡–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†
–ƒš‘Ž›™Š‡”‡–Š‡„ƒŽƒ…‡‘ˆ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ…‡–”ƒŽ–ƒš‹•‘–ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”’ƒ›‡–
‘ˆ‹–‡‰”ƒ–‡†–ƒšǤ
ȋ†Ȍ –Š‡ ‹‘ –‡””‹–‘”› –ƒš •ŠƒŽŽ ϐ‹”•– „‡ —–‹Ž‹•‡† –‘™ƒ”†• ’ƒ›‡– ‘ˆ ‹‘ –‡””‹–‘”› –ƒš ƒ† –Š‡
ƒ‘—–Ǣ”‡ƒ‹‹‰ǡ‹ˆƒ›ǡƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ–‡‰”ƒ–‡†–ƒšǢ
 ”‘˜‹†‡†–Šƒ––Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–
of ‹–‡‰”ƒ–‡†–ƒš‘Ž›™Š‡”‡–Š‡„ƒŽƒ…‡‘ˆ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ…‡–”ƒŽ–ƒš‹•‘–ƒ˜ƒ‹Žƒ„Ž‡
for ’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšǤ
ȋ‡Ȍ –Š‡‡–”ƒŽ–ƒš•ŠƒŽŽ‘–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǢƒ†
ȋˆȌ –Š‡–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ‘–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‡–”ƒŽ–ƒšǤ
Utilisation of input tax credit subject to certain conditions [Section 49A]
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•‡…–‹‘Ͷͻǡ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘
–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ–‡‰”ƒ–‡†–ƒšǡ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡƒ•–Š‡
…ƒ•‡ƒ›„‡ǡ‘Ž›ƒˆ–‡”–Š‡‹’—––ƒš…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‘ƒ……‘—–‘ˆ‹–‡‰”ƒ–‡†–ƒšŠƒ•ϐ‹”•–„‡‡—–‹Ž‹œ‡†ˆ—ŽŽ›–‘™ƒ”†•
•—…Š’ƒ›‡–Ǥ

Powers Assumed by the Government to Notify Order of Utilization of Input Tax Credit [Section 49B]
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‹•Šƒ’–‡”ƒ†•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ…Žƒ—•‡ȋ‡Ȍƒ†…Žƒ—•‡ȋˆȌ ‘ˆ
•—„Ǧ•‡…–‹‘ȋͷȌ‘ˆ•‡…–‹‘Ͷͻǡ–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ’”‡•…”‹„‡–Š‡ ‘”†‡”
ƒ†ƒ‡”‘ˆ—–‹Ž‹•ƒ–‹‘‘ˆ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ–‡‰”ƒ–‡†–ƒšǡ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘ –‡””‹–‘”›
–ƒšǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–‘™ƒ”†•’ƒ›‡–‘ˆƒ›•—…Š–ƒšǤ
Analysis
Š‡’ƒ›‡–•–‘„‡ƒ†‡ƒ”‡ƒ•—†‡”ǣ
ƒȌ ‘”–Š‡‹–”ƒǦ•–ƒ–‡•—’’Ž‹‡•ǡ
Ϊ
–‘„‡’ƒ‹†‹‡“—ƒŽ’”‘’‘”–‹‘•
„Ȍ ‘”–Š‡‹–‡”Ǧ•–ƒ–‡•—’’Ž‹‡•ǡ
–‘„‡’ƒ‹†’—–ƒš”‡†‹–ƒ••‡ŽˆǦƒ••‡••‡†˜‹†‡–Š‡‘–ŠŽ›”‡–—”•™‹ŽŽ„‡
”‡ϐŽ‡…–‡†‹–Š‡Ž‡…–”‘‹…”‡†‹–‡†‰‡”Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 759

Š‡‡™Ž›‹•‡”–‡†‡…–‹‘Ͷͻ‘ˆ–Š‡
…–’”‘˜‹†‡•–Šƒ––Š‡
‹’—– –ƒš …”‡†‹– ‘ˆ –‡‰”ƒ–‡† –ƒš Šƒ• –‘ „‡ —–‹Ž‹œ‡† …‘’Ž‡–‡Ž›
„‡ˆ‘”‡‹’—––ƒš…”‡†‹–‘ˆ‡–”ƒŽ–ƒšȀ–ƒ–‡–ƒš…ƒ„‡—–‹Ž‹œ‡†ˆ‘”
†‹•…Šƒ”‰‡‘ˆƒ›–ƒšŽ‹ƒ„‹Ž‹–›Ǥ

—”–Š‡”ǡƒ•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘Ͷͻ‘ˆ–Š‡
…–ǡ…”‡†‹–
‘ˆ–‡‰”ƒ–‡†–ƒšŠƒ•–‘„‡—–‹Ž‹œ‡†ϐ‹”•–ˆ‘”’ƒ›‡–‘ˆ–‡‰”ƒ–‡†
–ƒšǡ–Š‡‡–”ƒŽ–ƒšƒ†–Š‡–ƒ–‡–ƒš‹–Šƒ–‘”†‡”ƒ†ƒ–‘”‹Ž›Ǥ

Š‹• Ž‡† –‘ ƒ •‹–—ƒ–‹‘ǡ ‹ …‡”–ƒ‹ …ƒ•‡•ǡ ™Š‡”‡ ƒ –ƒš’ƒ›‡” Šƒ• –‘
†‹•…Šƒ”‰‡Š‹•–ƒšŽ‹ƒ„‹Ž‹–›‘ƒ……‘—–‘ˆ‘‡–›’‡‘ˆ–ƒšȋ•ƒ›–ƒ–‡
–ƒšȌ –Š”‘—‰Š ‡Ž‡…–”‘‹… …ƒ•Š Ž‡†‰‡”ǡ ™Š‹Ž‡ –Š‡ ‹’—– –ƒš …”‡†‹– ‘
ƒ……‘—–‘ˆ‘–Š‡”–›’‡‘ˆ–ƒšȋ•ƒ›‡–”ƒŽ–ƒšȌ”‡ƒ‹•—Ǧ—–‹Ž‹œ‡†‹
‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”

……‘”†‹‰Ž›ǡ—Ž‡ͺͺ‹•‡”–‡†‹–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•
ƒš—Ž‡•ǡʹͲͳ͹‹‡š‡”…‹•‡‘ˆ–Š‡’‘™‡”•—†‡”‡…–‹‘Ͷͻ‘ˆ
–Š‡
…–˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘Ǥͳ͸ȀʹͲͳͻǦ‡–”ƒŽƒšǡ†ƒ–‡†
ʹͻ–Šƒ”…ŠǡʹͲͳͻǤ

Š‡‡™Ž›‹•‡”–‡†”—Ž‡ͺͺ‹–Š‡
—Ž‡•ƒŽŽ‘™•—–‹Ž‹œƒ–‹‘‘ˆ‹’—––ƒš…”‡†‹–‘ˆ–‡‰”ƒ–‡†–ƒš–‘™ƒ”†•–Š‡
’ƒ›‡– ‘ˆ ‡–”ƒŽ –ƒš ƒ† –ƒ–‡ –ƒšǡ ‘” ƒ• –Š‡ …ƒ•‡ ƒ› „‡ǡ ‹‘ –‡””‹–‘”› –ƒšǡ ‹ ƒ› ‘”†‡” •—„Œ‡…– –‘ –Š‡
…‘†‹–‹‘–Šƒ––Š‡‡–‹”‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ–‡‰”ƒ–‡†–ƒš‹•…‘’Ž‡–‡Ž›‡šŠƒ—•–‡†ϐ‹”•–„‡ˆ‘”‡–Š‡
‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‡–”ƒŽ–ƒš‘”–ƒ–‡Ȁ‹‘–‡””‹–‘”›–ƒš…ƒ„‡—–‹Ž‹œ‡†Ǥ

‘ ˆ—”–Š‡” …Žƒ”‹ˆ› –Š‡ —–‹Ž‹œƒ–‹‘ ‡…Šƒ‹•ǡ –Š‡

‘˜‡”‡– Šƒ• ‹••—‡† ‹”…—Žƒ” ‘Ǥ ͻͺȀͳ͹ȀʹͲͳͻǦ
ǡ †ƒ–‡†
ʹ͵ǦͶǦʹͲͳͻǡ™Š‹…Š…Žƒ”‹ϐ‹‡•–Š‡”‡˜‹•‡†’‘•‹–‹‘ƒ•—†‡”Ǣ

Input tax credit on Output liability on Output liability on Output liability on

account of account of Integrated account of Central tax account of State tax/
tax Union Territory tax

Integrated tax ȋȌ ȋȌȂƒ›‘”†‡”ƒ†‹ƒ›’”‘’‘”–‹‘

ȋȌ’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ–‡‰”ƒ–‡†–ƒš–‘„‡…‘’Ž‡–‡†‡šŠƒ—•–‡†ƒ†ƒ–‘”‹Ž›
Central tax ȋȌ ȋȌ ‘–’‡”‹––‡†

State tax/ Union

ȋȌ ‘–’‡”‹––‡† ȋȌ
Territory tax

Section Order/ Rank preference Credit GST liability

Ͷͻ •– 
 Ǧ

Ǧ

Ǧ

”‘˜‹•‘‘ˆͶͻȋͷȌ † 
 Ǧ

Ǧ

”‘˜‹•‘‘ˆͶͻȋͷȌ ”† 
 Ǧ

Ǧ

 760 Lesson 15 Ȉ EP-TL

Illustration 4:
Amount of Input tax Credit available and output liability under different tax heads

Head Output Liability Input Tax Credit

Integrated tax ͳͲͲͲ ͳ͵ͲͲ
Central tax ͵ͲͲ ʹͲͲ
State tax / Union Territory tax ͵ͲͲ ʹͲͲ
Total ͳ͸ͲͲ ͳ͹ͲͲ

Option 1:

Input tax credit Discharge of output Discharge of Discharge of output Balance of Input Tax
on account of liability on account output liability liability on account Credit
of Integrated tax on account of of State tax/ Union
Central tax Territory tax
Integrated tax ͳͲͲͲ ʹͲͲ ͳͲͲ Ͳ

Input tax Credit on account of Integrated tax has been completely exhausted

Central tax Ͳ ͳͲͲ - ͳͲͲ

State tax / Union Ͳ - ʹͲͲ Ͳ
Territory tax
Total ͳͲͲͲ ͵ͲͲ ͵ͲͲ ͳͲͲ

Option 2:

Input tax credit Discharge of Discharge of output Discharge of output Balance of Input
on account of output liability liability on account liability on account Tax Credit
on account of of Central tax of State tax / Union
Integrated tax Territory tax
Integrated tax ͳͲͲͲ ͳͲͲ ʹͲͲ Ͳ

Input tax Credit on account of Integrated tax has been completely exhausted
Central tax Ͳ ʹͲͲ - Ͳ
State tax / Union Ͳ - ͳͲͲ ͳͲͲ
Territory tax
Total ͳͲͲͲ ͵ͲͲ ͵ͲͲ ͳͲͲ

‡…–‹‘ͶͻƒŽ•‘–ƒŽ•‘ˆ–Š‡–Š‹”†–›’‡‘ˆŽ‡†‰‡”ǡ…ƒŽŽ‡†–Š‡Ž‡…–”‘‹…‹ƒ„‹Ž‹–›‡†‰‡”ǤŠ‹•‹•„ƒ•‹…ƒŽŽ›ƒ…‘–”‘ŽŽ‡†-
‰‡”™Š‹…Š•—•—’ƒŽŽ–Š‡Ž‹ƒ„‹Ž‹–‹‡•‘ˆ–Š‡–ƒšƒ„Ž‡’‡”•‘‹ƒ•‡’ƒ”ƒ–‡”‡‰‹•–‡”Ǥ
Š‡…Š”‘‘Ž‘‰‹…ƒŽ‘”†‡”‘ˆ†‹•…Šƒ”‰‡‘ˆŽ‹ƒ„‹Ž‹–‹‡•‘ˆƒ–ƒšƒ„Ž‡’‡”•‘™‘—Ž†„‡ǣ
‹Ǥ ‡ŽˆǦƒ••‡••‡†–ƒšƒ†‘–Š‡”†—‡•ˆ‘”–Š‡’”‡˜‹‘—•–ƒš’‡”‹‘†•™‹ŽŽ„‡†‹•…Šƒ”‰‡†ϐ‹”•–
‹‹Ǥ ‡ŽˆǦƒ••‡••‡†–ƒšƒ†‘–Š‡”†—‡•ˆ‘”–Š‡…—””‡––ƒš’‡”‹‘†•™‹ŽŽ„‡†‹•…Šƒ”‰‡†‡š–
‹‹‹Ǥ ‘•–™Š‹…Š–Š‡ƒ‘—–’ƒ›ƒ„Ž‡—†‡”†‡ƒ†™‘—Ž†„‡‡š–‹‰—‹•Š‡†Žƒ•––‡”‡•–‹•’ƒ›ƒ„Ž‡™Š‡
‹Ǥ Š‡”‡‹•ƒ†‡Žƒ›‹’ƒ›‡–‘ˆ–ƒš‹’ƒ”–‘”‹ˆ—ŽŽ™‹–Š‹–Š‡’”‡•…”‹„‡†’‡”‹‘†
‹‹Ǥ Š‡”‡‹•—†—‡‘”‡š…‡••…Žƒ‹‘ˆ
‹‹‹Ǥ Š‡”‡‹•—†—‡‘ˆ‡š…‡••”‡†—…–‹‘‘ˆ—–’—–ƒš‹ƒ„‹Ž‹–›
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 761

Š‡”ƒ–‡‘ˆ‹–‡”‡•–™‘—Ž†„‡ƒ•‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–™Š‹…Š•ŠƒŽŽ‘–‡š…‡‡†ͳͺΨ‹…ƒ•‡‘ˆ†‡Žƒ›‹
’ƒ›‡–‘ˆ–ƒšƒ†ʹͶΨ‹–Š‡”‡ƒ‹‹‰–™‘•…‡ƒ”‹‘•ǤŠ‡’‡”‹‘†‘ˆ‹–‡”‡•–™‹ŽŽ„‡ˆ”‘–Š‡†ƒ–‡ˆ‘ŽŽ‘™‹‰–Š‡
†—‡†ƒ–‡‘ˆ’ƒ›‡–—–‹Ž–Š‡†ƒ–‡‘ˆƒ…–—ƒŽ’ƒ›‡–‘ˆ–ƒšǤ

ȏȐ
Electronic Liability Register [Rule 85]
ȋͳȌ Š‡‡Ž‡…–”‘‹…Ž‹ƒ„‹Ž‹–›”‡‰‹•–‡”•’‡…‹ϐ‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋ͹Ȍ‘ˆ•‡…–‹‘Ͷͻ•ŠƒŽŽ„‡ƒ‹–ƒ‹‡†‹ 

ǦͲͳˆ‘”‡ƒ…Š’‡”•‘Ž‹ƒ„Ž‡–‘’ƒ›–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡŽƒ–‡ˆ‡‡‘”ƒ›‘–Š‡”ƒ‘—–‘ –Š‡‘‘
‘”–ƒŽƒ†ƒŽŽƒ‘—–•’ƒ›ƒ„Ž‡„›Š‹•ŠƒŽŽ„‡†‡„‹–‡†–‘–Š‡•ƒ‹†”‡‰‹•–‡”Ǥ
ȋʹȌ Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–›”‡‰‹•–‡”‘ˆ–Š‡’‡”•‘•ŠƒŽŽ„‡†‡„‹–‡†„›ǣǦ
ȋƒȌ –Š‡ ƒ‘—– ’ƒ›ƒ„Ž‡ –‘™ƒ”†• –ƒšǡ ‹–‡”‡•–ǡ Žƒ–‡ ˆ‡‡ ‘” ƒ› ‘–Š‡” ƒ‘—– ’ƒ›ƒ„Ž‡ ƒ• ’‡” –Š‡ ”‡–—”
ˆ—”‹•Š‡†„›–Š‡•ƒ‹†’‡”•‘Ǣ
ȋ„Ȍ  –Š‡ƒ‘—–‘ˆ–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›‘”ƒ›‘–Š‡”ƒ‘—–’ƒ›ƒ„Ž‡ƒ•†‡–‡”‹‡†„›ƒ’”‘’‡”‘ˆϐ‹…‡”‹
’—”•—ƒ…‡‘ˆƒ›’”‘…‡‡†‹‰•—†‡”–Š‡…–‘”ƒ•ƒ•…‡”–ƒ‹‡†„›–Š‡•ƒ‹†’‡”•‘Ǣ
ȋ…Ȍ –Š‡ ƒ‘—– ‘ˆ –ƒš ƒ† ‹–‡”‡•– ’ƒ›ƒ„Ž‡ ƒ• ƒ ”‡•—Ž– ‘ˆ ‹•ƒ–…Š —†‡” •‡…–‹‘ Ͷʹ ‘” •‡…–‹‘ Ͷ͵ ‘”
•‡…–‹‘ͷͲǢ‘”
ȋ†Ȍ ƒ›ƒ‘—–‘ˆ‹–‡”‡•––Šƒ–ƒ›ƒ……”—‡ˆ”‘–‹‡–‘–‹‡Ǥ
ȋ͵Ȍ —„Œ‡…– –‘ –Š‡ ’”‘˜‹•‹‘• ‘ˆ •‡…–‹‘ Ͷͻǡ •‡…–‹‘ Ͷͻ ƒ† •‡…–‹‘ Ͷͻ ’ƒ›‡– ‘ˆ ‡˜‡”› Ž‹ƒ„‹Ž‹–› „› ƒ
”‡‰‹•–‡”‡†’‡”•‘ƒ•’‡”Š‹•”‡–—”•ŠƒŽŽ„‡ƒ†‡„›†‡„‹–‹‰–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ƒ‹–ƒ‹‡† ƒ•’‡”
”—Ž‡ͺ͸‘”–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ƒ‹–ƒ‹‡†ƒ•’‡””—Ž‡ͺ͹ƒ†–Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–› ”‡‰‹•–‡”
•ŠƒŽŽ„‡…”‡†‹–‡†ƒ……‘”†‹‰Ž›Ǥ
ȋͶȌ Š‡ƒ‘—–†‡†—…–‡†—†‡”•‡…–‹‘ͷͳǡ‘”–Š‡ƒ‘—–…‘ŽŽ‡…–‡†—†‡”•‡…–‹‘ͷʹǡ‘”–Š‡ƒ‘—–’ƒ›ƒ„Ž‡
—†‡”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘”•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ͻǡ‘”–Š‡ƒ‘—–’ƒ›ƒ„Ž‡—†‡”•‡…–‹‘ͳͲǡ‘”•—„Ǧ•‡…–‹‘
ȋ͵Ȍ‘”•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ͷ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•…–‘”•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘”•—„Ǧ•‡…–‹‘
ȋͶȌ ‘ˆ •‡…–‹‘ ͹ ‘ˆ –Š‡ ‹‘ ‡””‹–‘”›
‘‘†• ƒ† ‡”˜‹…‡• ƒš …– ƒ› ƒ‘—– ’ƒ›ƒ„Ž‡ –‘™ƒ”†• ‹–‡”‡•–ǡ
’‡ƒŽ–›ǡˆ‡‡‘”ƒ›‘–Š‡”ƒ‘—–—†‡”–Š‡…–‘”–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•…–•ŠƒŽŽ„‡’ƒ‹†„›
†‡„‹–‹‰–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ƒ‹–ƒ‹‡†ƒ•’‡””—Ž‡ͺ͹ƒ†–Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–›”‡‰‹•–‡”•ŠƒŽŽ„‡
…”‡†‹–‡†ƒ……‘”†‹‰Ž›Ǥ
ȋͷȌ ›ƒ‘—–‘ˆ†‡ƒ††‡„‹–‡†‹–Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–›”‡‰‹•–‡”•ŠƒŽŽ•–ƒ†”‡†—…‡†–‘–Š‡‡š–‡–‘ˆ
”‡Ž‹‡ˆ‰‹˜‡„›–Š‡ƒ’’‡ŽŽƒ–‡ƒ—–Š‘”‹–›‘”’’‡ŽŽƒ–‡”‹„—ƒŽ‘”…‘—”–ƒ†–Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–›”‡‰‹•–‡”
•ŠƒŽŽ„‡…”‡†‹–‡†ƒ……‘”†‹‰Ž›Ǥ
ȋ͸Ȍ Š‡ƒ‘—–‘ˆ’‡ƒŽ–›‹’‘•‡†‘”Ž‹ƒ„Ž‡–‘„‡‹’‘•‡†•ŠƒŽŽ•–ƒ†”‡†—…‡†’ƒ”–Ž›‘”ˆ—ŽŽ›ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ
‹ˆ–Š‡–ƒšƒ„Ž‡’‡”•‘ƒ‡•–Š‡’ƒ›‡–‘ˆ–ƒšǡ‹–‡”‡•–ƒ†’‡ƒŽ–›•’‡…‹ϐ‹‡†‹–Š‡•Š‘™…ƒ—•‡‘–‹…‡‘”
†‡ƒ†‘”†‡”ƒ†–Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–›”‡‰‹•–‡”•ŠƒŽŽ„‡…”‡†‹–‡†ƒ……‘”†‹‰Ž›Ǥ
ȋ͹Ȍ ”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽǡ—’‘‘–‹…‹‰ƒ›†‹•…”‡’ƒ…›‹Š‹•‡Ž‡…–”‘‹…Ž‹ƒ„‹Ž‹–›Ž‡†‰‡”ǡ…‘—‹…ƒ–‡–Š‡
•ƒ‡–‘–Š‡‘ˆϐ‹…‡”‡š‡”…‹•‹‰Œ—”‹•†‹…–‹‘‹–Š‡ƒ––‡”ǡ–Š”‘—‰Š–Š‡…‘‘’‘”–ƒŽ‹ 
ǦͲͶǤ
Electronic Credit Ledger [Rule 86]
ȋͳȌ Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”•ŠƒŽŽ„‡ƒ‹–ƒ‹‡†‹ 
ǦͲʹˆ‘”‡ƒ…Š”‡‰‹•–‡”‡†’‡”•‘‡Ž‹‰‹„Ž‡ˆ‘”
‹’—––ƒš…”‡†‹–—†‡”–Š‡…–‘–Š‡‘‘‘”–ƒŽƒ†‡˜‡”›…Žƒ‹‘ˆ‹’—––ƒš…”‡†‹–—†‡”–Š‡…–•ŠƒŽŽ
„‡…”‡†‹–‡†–‘–Š‡•ƒ‹†‡†‰‡”Ǥ
ȋʹȌ Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”•ŠƒŽŽ„‡†‡„‹–‡†–‘–Š‡‡š–‡–‘ˆ†‹•…Šƒ”‰‡‘ˆƒ›Ž‹ƒ„‹Ž‹–›‹ƒ……‘”†ƒ…‡™‹–Š
•‡…–‹‘Ͷͻ‘”•‡…–‹‘Ͷͻ‘”•‡…–‹‘ͶͻǤ
ȋ͵Ȍ Š‡”‡ƒ”‡‰‹•–‡”‡†’‡”•‘Šƒ•…Žƒ‹‡†”‡ˆ—†‘ˆƒ›——–‹Ž‹œ‡†ƒ‘—–ˆ”‘–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷͶǡ–Š‡ƒ‘—––‘–Š‡‡š–‡–‘ˆ–Š‡…Žƒ‹•ŠƒŽŽ„‡†‡„‹–‡†‹–Š‡•ƒ‹†
Ž‡†‰‡”Ǥ
ȋͶȌ ˆ–Š‡”‡ˆ—†•‘ϐ‹Ž‡†‹•”‡Œ‡…–‡†ǡ‡‹–Š‡”ˆ—ŽŽ›‘”’ƒ”–Ž›ǡ–Š‡ƒ‘—–†‡„‹–‡†—†‡”•—„”—Ž‡ȋ͵Ȍǡ–‘–Š‡‡š–‡–‘ˆ
”‡Œ‡…–‹‘ǡ•ŠƒŽŽ„‡”‡Ǧ…”‡†‹–‡†–‘–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”„›–Š‡’”‘’‡”‘ˆϐ‹…‡”„›ƒ‘”†‡”ƒ†‡‹ 

ǦͲ͵Ǥ
 762 Lesson 15 Ȉ EP-TL

ȋͶȌ Š‡”‡ƒ”‡‰‹•–‡”‡†’‡”•‘Šƒ•…Žƒ‹‡†”‡ˆ—†‘ˆƒ›ƒ‘—–’ƒ‹†ƒ•–ƒš™”‘‰Ž›’ƒ‹†‘”’ƒ‹†‹‡š…‡••ˆ‘”
™Š‹…Š†‡„‹–Šƒ•„‡‡ƒ†‡ˆ”‘–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ǡ–Š‡•ƒ‹†ƒ‘—–ǡ‹ˆˆ‘—†ƒ†‹••‹„Ž‡ǡ•ŠƒŽŽ„‡
”‡Ǧ…”‡†‹–‡† –‘ –Š‡ ‡Ž‡…–”‘‹… …”‡†‹– Ž‡†‰‡” „› –Š‡ ’”‘’‡” ‘ˆϐ‹…‡” „› ƒ ‘”†‡” ƒ†‡ ‹ 
 ǦͲ͵Ǥ
ȋ‹•‡”–‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘Ǥͳ͸ȀʹͲʹͲ†–Ǥʹ͵ǤͲ͵ǤʹͲʹͲȌ
ȋͷȌ ƒ˜‡ ƒ• ’”‘˜‹†‡† ‹ –Š‡•‡ ”—Ž‡•ǡ ‘ ‡–”› •ŠƒŽŽ „‡ ƒ†‡ †‹”‡…–Ž› ‹ –Š‡ ‡Ž‡…–”‘‹… …”‡†‹– Ž‡†‰‡” —†‡” ƒ›
…‹”…—•–ƒ…‡Ǥ
ȋ͸Ȍ  ”‡‰‹•–‡”‡† ’‡”•‘ •ŠƒŽŽǡ —’‘ ‘–‹…‹‰ ƒ› †‹•…”‡’ƒ…› ‹ Š‹• ‡Ž‡…–”‘‹… …”‡†‹– Ž‡†‰‡”ǡ …‘—‹…ƒ–‡ –Š‡
•ƒ‡–‘–Š‡‘ˆϐ‹…‡”‡š‡”…‹•‹‰Œ—”‹•†‹…–‹‘‹–Š‡ƒ––‡”ǡ–Š”‘—‰Š–Š‡‘‘‘”–ƒŽ‹ 
ǦͲͶǤ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•”—Ž‡ǡ‹–‹•Š‡”‡„›…Žƒ”‹ϐ‹‡†–Šƒ–ƒ”‡ˆ—†•ŠƒŽŽ„‡†‡‡‡†–‘„‡”‡Œ‡…–‡†ǡ‹ˆ
–Š‡ƒ’’‡ƒŽ‹•ϐ‹ƒŽŽ›”‡Œ‡…–‡†‘”‹ˆ–Š‡…Žƒ‹ƒ–‰‹˜‡•ƒ—†‡”–ƒ‹‰–‘–Š‡’”‘’‡”‘ˆϐ‹…‡”–Šƒ–Š‡•ŠƒŽŽ‘–ϐ‹Ž‡ƒ
ƒ’’‡ƒŽǤ
Conditions of use of amount available in electronic credit ledger [Rule 86A]

‹†‡ ‘–‹ϐ‹…ƒ–‹‘‘Ǥ͹ͷȀʹͲͳͻǦǤǤ†ƒ–‡†ʹ͸ǤͳʹǤʹͲͳͻǡ–Š‡
‘˜‡”‡–Šƒ•‹•‡”–‡†—Ž‡ͺ͸‹–Š‡
—Ž‡•ǡ
ʹͲͳ͹™Š‹…Š‡’‘™‡”•
‘ˆϐ‹…‡”•–‘„Ž‘…—–‹Ž‹œƒ–‹‘‹’—––ƒš…”‡†‹–‹…‡”–ƒ‹•…‡ƒ”‹‘•ƒ•„‡Ž‘™Ǥ
ȋͳȌ Š‡ ‘‹••‹‘‡” ‘” ƒ ‘ˆϐ‹…‡” ƒ—–Š‘”‹•‡† „› Š‹ ‹ –Š‹• „‡ŠƒŽˆǡ ‘– „‡Ž‘™ –Š‡ ”ƒ ‘ˆ ƒ ••‹•–ƒ–
‘‹••‹‘‡”ǡŠƒ˜‹‰”‡ƒ•‘•–‘„‡Ž‹‡˜‡–Šƒ–…”‡†‹–‘ˆ‹’—––ƒšƒ˜ƒ‹Žƒ„Ž‡‹–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”Šƒ•
„‡‡ˆ”ƒ—†—Ž‡–Ž›ƒ˜ƒ‹Ž‡†‘”‹•‹‡Ž‹‰‹„Ž‡‹ƒ•—…Šƒ•Ǧ
ƒȌ –Š‡ …”‡†‹– ‘ˆ ‹’—– –ƒš Šƒ• „‡‡ ƒ˜ƒ‹Ž‡† ‘ –Š‡ •–”‡‰–Š ‘ˆ –ƒš ‹˜‘‹…‡• ‘” †‡„‹– ‘–‡• ‘” ƒ› ‘–Š‡”
†‘…—‡–’”‡•…”‹„‡†—†‡””—Ž‡͵͸Ǧ
‹Ǥ ‹••—‡† „› ƒ ”‡‰‹•–‡”‡† ’‡”•‘ ™Š‘ Šƒ• „‡‡ ˆ‘—† ‘Ǧ‡š‹•–‡– ‘” ‘– –‘ „‡ …‘†—…–‹‰ ƒ›
„—•‹‡••ˆ”‘ƒ›’Žƒ…‡ˆ‘”™Š‹…Š”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‘„–ƒ‹‡†Ǣ‘”
‹‹Ǥ ™‹–Š‘—–”‡…‡‹’–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ‘”
„Ȍ –Š‡ …”‡†‹– ‘ˆ ‹’—– –ƒš Šƒ• „‡‡ ƒ˜ƒ‹Ž‡† ‘ –Š‡ •–”‡‰–Š ‘ˆ –ƒš ‹˜‘‹…‡• ‘” †‡„‹– ‘–‡• ‘” ƒ› ‘–Š‡”
†‘…—‡–’”‡•…”‹„‡†—†‡””—Ž‡͵͸‹”‡•’‡…–‘ˆƒ›•—’’Ž›ǡ–Š‡–ƒš…Šƒ”‰‡†‹”‡•’‡…–‘ˆ™Š‹…ŠŠƒ•
‘–„‡‡’ƒ‹†–‘–Š‡
‘˜‡”‡–Ǣ‘”
…Ȍ –Š‡”‡‰‹•–‡”‡†’‡”•‘ƒ˜ƒ‹Ž‹‰–Š‡…”‡†‹–‘ˆ‹’—––ƒšŠƒ•„‡‡ˆ‘—†‘Ǧ‡š‹•–‡–‘”‘––‘„‡…‘†—…–‹‰
ƒ›„—•‹‡••ˆ”‘ƒ›’Žƒ…‡ˆ‘”™Š‹…Š”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‘„–ƒ‹‡†Ǣ‘”
†Ȍ –Š‡”‡‰‹•–‡”‡†’‡”•‘ƒ˜ƒ‹Ž‹‰ƒ›…”‡†‹–‘ˆ‹’—––ƒš‹•‘–‹’‘••‡••‹‘‘ˆƒ–ƒš‹˜‘‹…‡‘”†‡„‹–‘–‡
‘”ƒ›‘–Š‡”†‘…—‡–’”‡•…”‹„‡†—†‡””—Ž‡͵͸ǡƒ›ǡˆ‘””‡ƒ•‘•–‘„‡”‡…‘”†‡†‹™”‹–‹‰ǡ‘–ƒŽŽ‘™
†‡„‹– ‘ˆ ƒ ƒ‘—– ‡“—‹˜ƒŽ‡– –‘ •—…Š …”‡†‹– ‹ ‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ˆ‘”†‹•…Šƒ”‰‡‘ˆƒ›Ž‹ƒ„‹Ž‹–›
—†‡”•‡…–‹‘Ͷͻ‘”ˆ‘”…Žƒ‹‘ˆƒ›”‡ˆ—†‘ˆƒ› ——–‹Ž‹•‡†ƒ‘—–Ǥ
ȋʹȌ Š‡ ‘‹••‹‘‡”ǡ ‘” –Š‡ ‘ˆϐ‹…‡” ƒ—–Š‘”‹•‡† „› Š‹ —†‡” •—„Ǧ”—Ž‡ ȋͳȌ ƒ›ǡ —’‘ „‡‹‰ •ƒ–‹•ϐ‹‡† –Šƒ–
…‘†‹–‹‘•ˆ‘”†‹•ƒŽŽ‘™‹‰†‡„‹–‘ˆ‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ƒ•ƒ„‘˜‡ǡ‘Ž‘‰‡”‡š‹•–ǡƒŽŽ‘™•—…Š†‡„‹–Ǥ
ȋ͵Ȍ —…Š”‡•–”‹…–‹‘•ŠƒŽŽ…‡ƒ•‡–‘Šƒ˜‡‡ˆˆ‡…–ƒˆ–‡”–Š‡‡š’‹”›‘ˆƒ’‡”‹‘†‘ˆ‘‡›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ‹’‘•‹‰
•—…Š”‡•–”‹…–‹‘Ǥdz
Electronic Cash Ledger [Rule 87]
ȋͳȌ Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”—†‡”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘Ͷͻ•ŠƒŽŽ„‡ƒ‹–ƒ‹‡†‹ 
Ǧ Ͳͷˆ‘”
‡ƒ…Š ’‡”•‘ǡ Ž‹ƒ„Ž‡ –‘ ’ƒ› –ƒšǡ ‹–‡”‡•–ǡ ’‡ƒŽ–›ǡ Žƒ–‡ ˆ‡‡ ‘” ƒ› ‘–Š‡” ƒ‘—–ǡ ‘ –Š‡ ‘‘ ‘”–ƒŽ ˆ‘”
…”‡†‹–‹‰–Š‡ƒ‘—–†‡’‘•‹–‡†ƒ††‡„‹–‹‰–Š‡’ƒ›‡––Š‡”‡ˆ”‘–‘™ƒ”†•–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡‘”ƒ›
‘–Š‡”ƒ‘—–Ǥ
ȋʹȌ ›’‡”•‘ǡ‘”ƒ’‡”•‘‘Š‹•„‡ŠƒŽˆǡ•ŠƒŽŽ‰‡‡”ƒ–‡ƒ…ŠƒŽŽƒ‹ 
ǦͲ͸‘–Š‡‘‘‘”–ƒŽ
ƒ†‡–‡”–Š‡†‡–ƒ‹Ž•‘ˆ–Š‡ƒ‘—––‘„‡†‡’‘•‹–‡†„›Š‹–‘™ƒ”†•–ƒšǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡˆ‡‡•‘”ƒ›‘–Š‡”ƒ‘—–Ǥ
 ”‘˜‹†‡†–Šƒ––Š‡…ŠƒŽŽƒ‹ 
ǦͲ͸‰‡‡”ƒ–‡†ƒ––Š‡…‘‘’‘”–ƒŽ•ŠƒŽŽ„‡˜ƒŽ‹†ˆ‘”ƒ’‡”‹‘†‘ˆ
ϐ‹ˆ–‡‡†ƒ›•Ǥ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–ƒ’‡”•‘•—’’Ž›‹‰‘Ž‹‡‹ˆ‘”ƒ–‹‘ƒ††ƒ–ƒ„ƒ•‡ƒ……‡••‘””‡–”‹‡˜ƒŽ•‡”˜‹…‡•ˆ”‘ƒ
’Žƒ…‡‘—–•‹†‡†‹ƒ–‘ƒ‘Ǧ–ƒšƒ„Ž‡‘Ž‹‡”‡…‹’‹‡–”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͶ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 763

‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ȋͳ͵‘ˆʹͲͳ͹Ȍƒ›ƒŽ•‘†‘•‘–Š”‘—‰Š–Š‡‘ƒ”†ǯ•’ƒ›‡–•›•–‡ƒ‡Ž›ǡŽ‡…–”‘‹…
……‘—–‹‰›•–‡‹š…‹•‡ƒ†‡”˜‹…‡ƒšˆ”‘–Š‡†ƒ–‡–‘„‡‘–‹ϐ‹‡†„›–Š‡ ‘ƒ”†Ǥ
ȋ͵Ȍ Š‡†‡’‘•‹–—†‡”•—„Ǧ”—Ž‡ȋʹȌ•ŠƒŽŽ„‡ƒ†‡–Š”‘—‰Šƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰‘†‡•ǣ
ȋ‹Ȍ –‡”‡–ƒ‹‰–Š”‘—‰Šƒ—–Š‘”‹œ‡†„ƒ•Ǣ
ȋ‹‹Ȍ ”‡†‹–…ƒ”†‘”‡„‹–…ƒ”†–Š”‘—‰Š–Š‡ƒ—–Š‘”‹•‡†„ƒǢ
ȋ‹‹‹Ȍ ƒ–‹‘ƒŽŽ‡…–”‘‹… —†”ƒ•ˆ‡”ȋ Ȍ‘”‡ƒŽ‹‡
”‘••‡––Ž‡‡–ȋ
Ȍˆ”‘ƒ›„ƒǢ
ȋ‹˜Ȍ ˜‡”–Š‡‘—–‡”’ƒ›‡–ȋȌ–Š”‘—‰Šƒ—–Š‘”‹œ‡†„ƒ•ˆ‘”†‡’‘•‹–•—’–‘–‡–Š‘—•ƒ†”—’‡‡•
’‡”…ŠƒŽŽƒ’‡”–ƒš’‡”‹‘†ǡ„›…ƒ•Šǡ…Š‡“—‡‘”†‡ƒ††”ƒˆ–Ǥ
 ”‘˜‹†‡†–Šƒ––Š‡”‡•–”‹…–‹‘ˆ‘”†‡’‘•‹–—’–‘–‡–Š‘—•ƒ†”—’‡‡•’‡”…ŠƒŽŽƒ‹…ƒ•‡‘ˆƒ˜‡”–Š‡‘—–‡”
ȋȌ’ƒ›‡–•ŠƒŽŽ‘–ƒ’’Ž›–‘†‡’‘•‹––‘„‡ƒ†‡„›ȂȋƒȌ
‘˜‡”‡–‡’ƒ”–‡–•‘”ƒ›‘–Š‡”†‡’‘•‹–
–‘„‡ƒ†‡„›’‡”•‘•ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”‹–Š‹•„‡ŠƒŽˆǢȋ„Ȍ”‘’‡”‘ˆϐ‹…‡”‘”ƒ›‘–Š‡”
‘ˆϐ‹…‡”ƒ—–Š‘”‹•‡†–‘”‡…‘˜‡”‘—–•–ƒ†‹‰†—‡•ˆ”‘ƒ›’‡”•‘ǡ™Š‡–Š‡””‡‰‹•–‡”‡†‘”‘–ǡ‹…Ž—†‹‰”‡…‘˜‡”›
ƒ†‡–Š”‘—‰Šƒ––ƒ…Š‡–‘”•ƒŽ‡‘ˆ‘˜ƒ„Ž‡‘”‹‘˜ƒ„Ž‡’”‘’‡”–‹‡•Ǣȋ…Ȍ”‘’‡”‘ˆϐ‹…‡”‘”ƒ›‘–Š‡”‘ˆϐ‹…‡”
ƒ—–Š‘”‹œ‡†ˆ‘”–Š‡ƒ‘—–•…‘ŽŽ‡…–‡†„›™ƒ›‘ˆ…ƒ•Šǡ…Š‡“—‡‘”†‡ƒ††”ƒˆ–†—”‹‰ƒ›‹˜‡•–‹‰ƒ–‹‘‘”
‡ˆ‘”…‡‡–ƒ…–‹˜‹–›‘”ƒ›ƒ†Š‘…†‡’‘•‹–ǣ
 ”‘˜‹†‡†ˆ—”–Š‡”–Šƒ–ƒ’‡”•‘•—’’Ž›‹‰‘Ž‹‡‹ˆ‘”ƒ–‹‘ƒ††ƒ–ƒ„ƒ•‡ƒ……‡••‘””‡–”‹‡˜ƒŽ•‡”˜‹…‡• ˆ”‘
ƒ’Žƒ…‡‘—–•‹†‡†‹ƒ–‘ƒ‘Ǧ–ƒšƒ„Ž‡‘Ž‹‡”‡…‹’‹‡–”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͶ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†
‡”˜‹…‡• ƒš…–ǡ ʹͲͳ͹ ȋͳ͵ ‘ˆ ʹͲͳ͹Ȍ ƒ› ƒŽ•‘ ƒ‡ –Š‡ †‡’‘•‹– —†‡” •—„Ǧ”—Ž‡ ȋʹȌ –Š”‘—‰Š ‹–‡”ƒ–‹‘ƒŽ
‘‡› –”ƒ•ˆ‡” –Š”‘—‰Š ‘…‹‡–› ˆ‘” ‘”Ž†™‹†‡ –‡”„ƒ ‹ƒ…‹ƒŽ ‡Ž‡…‘—‹…ƒ–‹‘ ’ƒ›‡–‡–™‘”ǡ
ˆ”‘–Š‡†ƒ–‡–‘„‡‘–‹ϐ‹‡†„›–Š‡‘ƒ”†Ǥ
ExplanationǤȂ ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• •—„Ǧ”—Ž‡ǡ ‹– ‹• Š‡”‡„› …Žƒ”‹ϐ‹‡† –Šƒ– ˆ‘” ƒ‹‰ ’ƒ›‡– ‘ˆ ƒ›
ƒ‘—–‹†‹…ƒ–‡†‹–Š‡…ŠƒŽŽƒǡ–Š‡…‘‹••‹‘ǡ‹ˆƒ›ǡ’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ•—…Š’ƒ›‡–•ŠƒŽŽ„‡ „‘”‡
„›–Š‡’‡”•‘ƒ‹‰•—…Š’ƒ›‡–Ǥ
ȋͶȌ ›’ƒ›‡–”‡“—‹”‡†–‘„‡ƒ†‡„›ƒ’‡”•‘™Š‘‹•‘–”‡‰‹•–‡”‡†—†‡”–Š‡…–ǡ•ŠƒŽŽ„‡ƒ†‡‘–Š‡„ƒ•‹•
‘ˆƒ–‡’‘”ƒ”›‹†‡–‹ϐ‹…ƒ–‹‘—„‡”‰‡‡”ƒ–‡†–Š”‘—‰Š–Š‡‘‘‘”–ƒŽǤ
ȋͷȌ Š‡”‡ –Š‡ ’ƒ›‡– ‹• ƒ†‡ „› ™ƒ› ‘ˆ   ‘” 
 ‘†‡ ˆ”‘ ƒ› „ƒǡ –Š‡ ƒ†ƒ–‡ ˆ‘” •ŠƒŽŽ „‡
‰‡‡”ƒ–‡†ƒŽ‘‰™‹–Š–Š‡…ŠƒŽŽƒ‘–Š‡‘‘‘”–ƒŽƒ†–Š‡•ƒ‡•ŠƒŽŽ„‡•—„‹––‡†–‘–Š‡„ƒˆ”‘
™Š‡”‡–Š‡’ƒ›‡–‹•–‘„‡ƒ†‡ǣ
 ”‘˜‹†‡†–Šƒ––Š‡ƒ†ƒ–‡ˆ‘”•ŠƒŽŽ„‡˜ƒŽ‹†ˆ‘”ƒ’‡”‹‘†‘ˆϐ‹ˆ–‡‡†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ‰‡‡”ƒ–‹‘‘ˆ…ŠƒŽŽƒǤ
ȋ͸Ȍ •—……‡••ˆ—Ž…”‡†‹–‘ˆ–Š‡ƒ‘—––‘–Š‡…‘…‡”‡†‰‘˜‡”‡–ƒ……‘—–ƒ‹–ƒ‹‡†‹–Š‡ƒ—–Š‘”‹•‡†„ƒǡ
ƒŠƒŽŽƒ†‡–‹ϐ‹…ƒ–‹‘—„‡”ȋȌ™‹ŽŽ„‡‰‡‡”ƒ–‡†„›–Š‡…‘ŽŽ‡…–‹‰ƒƒ†–Š‡•ƒ‡•ŠƒŽŽ„‡‹†‹…ƒ–‡†
‹–Š‡…ŠƒŽŽƒǤ
ȋ͹Ȍ ”‡…‡‹’–‘ˆˆ”‘–Š‡ƒ—–Š‘”‹œ‡†ƒǡ–Š‡•ƒ‹†ƒ‘—–•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”‘ˆ
–Š‡’‡”•‘‘™Š‘•‡„‡ŠƒŽˆ–Š‡†‡’‘•‹–Šƒ•„‡‡ƒ†‡ƒ†–Š‡‘‘‘”–ƒŽ•ŠƒŽŽƒ‡ƒ˜ƒ‹Žƒ„Ž‡ƒ”‡…‡‹’–
–‘–Š‹•‡ˆˆ‡…–Ǥ
ȋͺȌ Š‡”‡–Š‡„ƒƒ……‘—–‘ˆ–Š‡’‡”•‘…‘…‡”‡†ǡ‘”–Š‡’‡”•‘ƒ‹‰–Š‡†‡’‘•‹–‘Š‹•„‡ŠƒŽˆǡ‹•†‡„‹–‡†
„—–‘ŠƒŽŽƒ†‡–‹ϐ‹…ƒ–‹‘—„‡”ȋȌ‹•‰‡‡”ƒ–‡†‘”‰‡‡”ƒ–‡†„—–‘–…‘—‹…ƒ–‡†–‘–Š‡‘‘
‘”–ƒŽǡ–Š‡•ƒ‹†’‡”•‘ƒ›”‡’”‡•‡–‡Ž‡…–”‘‹…ƒŽŽ›‹ 
ǦͲ͹–Š”‘—‰Š–Š‡‘‘‘”–ƒŽ–‘–Š‡
ƒ‘”‡Ž‡…–”‘‹…‰ƒ–‡™ƒ›–Š”‘—‰Š™Š‹…Š–Š‡†‡’‘•‹–™ƒ•‹‹–‹ƒ–‡†Ǥ
ȋͻȌ ›ƒ‘—–†‡†—…–‡†—†‡”•‡…–‹‘ͷͳ‘”…‘ŽŽ‡…–‡†—†‡”•‡…–‹‘ͷʹƒ†…Žƒ‹‡†‹ 
ǦͲʹ„›–Š‡
”‡‰‹•–‡”‡†–ƒšƒ„Ž‡’‡”•‘ˆ”‘™Š‘–Š‡•ƒ‹†ƒ‘—–™ƒ•†‡†—…–‡†‘”ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ…‘ŽŽ‡…–‡†•ŠƒŽŽ„‡
…”‡†‹–‡†–‘Š‹•‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ”—Ž‡ͺ͹Ǥ
ȋͳͲȌ Š‡”‡ƒ’‡”•‘Šƒ•…Žƒ‹‡†”‡ˆ—†‘ˆƒ›ƒ‘—–ˆ”‘–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ǡ–Š‡•ƒ‹†ƒ‘—–•ŠƒŽŽ„‡
†‡„‹–‡†–‘–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”Ǥ
ȋͳͳȌ ˆ –Š‡ ”‡ˆ—† •‘ …Žƒ‹‡† ‹• ”‡Œ‡…–‡†ǡ ‡‹–Š‡” ˆ—ŽŽ› ‘” ’ƒ”–Ž›ǡ –Š‡ ƒ‘—– †‡„‹–‡† —†‡” •—„ ”—Ž‡ ȋͳͲȌǡ –‘ –Š‡
‡š–‡–‘ˆ”‡Œ‡…–‹‘ǡ•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”„›–Š‡’”‘’‡”‘ˆϐ‹…‡”„›ƒ‘”†‡”ƒ†‡‹

ǦͲ͵Ǥ
 764 Lesson 15 Ȉ EP-TL

ȋͳʹȌ ”‡‰‹•–‡”‡†’‡”•‘•ŠƒŽŽǡ—’‘‘–‹…‹‰ƒ›†‹•…”‡’ƒ…›‹Š‹•‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ǡ…‘—‹…ƒ–‡–Š‡•ƒ‡
–‘–Š‡‘ˆϐ‹…‡”‡š‡”…‹•‹‰Œ—”‹•†‹…–‹‘‹–Š‡ƒ––‡”ǡ–Š”‘—‰Š–Š‡…‘‘’‘”–ƒŽ‹ 
Ǧ ͲͶǤ
Explanation 1 ǦŠ‡”‡ˆ—†•ŠƒŽŽ„‡†‡‡‡†–‘„‡”‡Œ‡…–‡†‹ˆ–Š‡ƒ’’‡ƒŽ‹•ϐ‹ƒŽŽ›”‡Œ‡…–‡†Ǥ
Explanation 2 Ȃ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•”—Ž‡ǡ‹–‹•Š‡”‡„›…Žƒ”‹ϐ‹‡†–Šƒ–ƒ”‡ˆ—†•ŠƒŽŽ„‡†‡‡‡†–‘„‡”‡Œ‡…–‡†ǡ
‹ˆ–Š‡ƒ’’‡ƒŽ‹•ϐ‹ƒŽŽ›”‡Œ‡…–‡†‘”‹ˆ–Š‡…Žƒ‹ƒ–‰‹˜‡•ƒ—†‡”–ƒ‹‰–‘–Š‡’”‘’‡”‘ˆϐ‹…‡”–Šƒ–Š‡•ŠƒŽŽ‘–ϐ‹Ž‡
ƒƒ’’‡ƒŽǤ
†‡–‹ϐ‹…ƒ–‹‘—„‡”ˆ‘”‡ƒ…Š–”ƒ•ƒ…–‹‘ȏ—Ž‡ͺͺȐ
ȋͳȌ  —‹“—‡ ‹†‡–‹ϐ‹…ƒ–‹‘ —„‡” •ŠƒŽŽ „‡ ‰‡‡”ƒ–‡† ƒ– –Š‡ ‘‘ ‘”–ƒŽ ˆ‘” ‡ƒ…Š †‡„‹– ‘” …”‡†‹– –‘ –Š‡
‡Ž‡…–”‘‹……ƒ•Š‘”…”‡†‹–Ž‡†‰‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
ȋʹȌ Š‡—‹“—‡‹†‡–‹ϐ‹…ƒ–‹‘—„‡””‡Žƒ–‹‰–‘†‹•…Šƒ”‰‡‘ˆƒ›Ž‹ƒ„‹Ž‹–›•ŠƒŽŽ„‡‹†‹…ƒ–‡†‹–Š‡…‘””‡•’‘†‹‰
‡–”›‹–Š‡‡Ž‡…–”‘‹…–ƒšŽ‹ƒ„‹Ž‹–›”‡‰‹•–‡”Ǥ
ȋ͵Ȍ —‹“—‡‹†‡–‹ϐ‹…ƒ–‹‘—„‡”•ŠƒŽŽ„‡‰‡‡”ƒ–‡†ƒ––Š‡‘‘‘”–ƒŽˆ‘”‡ƒ…Š…”‡†‹–‹–Š‡‡Ž‡…–”‘‹…–ƒš
Ž‹ƒ„‹Ž‹–›”‡‰‹•–‡”ˆ‘””‡ƒ•‘•‘–Š‡”–Šƒ–Š‘•‡…‘˜‡”‡†—†‡”•—„Ǧ”—Ž‡ȋʹȌǤ
REFUNDS

‡ˆ—†”‡ˆ‡”•–‘ƒƒ‘—––Šƒ–‹•†—‡–‘–Š‡–ƒš’ƒ›‡”ˆ”‘–Š‡–ƒšƒ†‹‹•–”ƒ–‹‘Ǥ
Refund of tax [Section 54]
……‘”†‹‰–‘•‡…–‹‘ͷͶ‘ˆ–Š‡
…–ǡʹͲͳ͹ǡƒ›’‡”•‘…Žƒ‹‹‰”‡ˆ—†‘ˆƒ›–ƒšƒ†‹–‡”‡•–ǡ‹ˆƒ›ǡ’ƒ‹† ‘•—…Š
–ƒš‘”ƒ›‘–Š‡”ƒ‘—–’ƒ‹†„›Š‹ǡƒ›ƒ‡ƒƒ’’Ž‹…ƒ–‹‘„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ–™‘›‡ƒ”•ˆ”‘ –Š‡”‡Ž‡˜ƒ–
†ƒ–‡Ǥˆ–Š‡”‡‹•ƒ›„ƒŽƒ…‡‹–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”‘”‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”ƒˆ–‡”’ƒ›‡– ‘ˆ–ƒšǡ‹–‡”‡•–ǡ
’‡ƒŽ–›ǡˆ‡‡‘”ƒ›‘–Š‡”ƒ‘—–’ƒ›ƒ„Ž‡ƒ›…Žƒ‹•—…Š”‡ˆ—†‹–Š‡”‡–—”ˆ—”‹•Š‡†—†‡” •‡…–‹‘͵ͻǤ
•’‡…‹ƒŽ‹•‡†ƒ‰‡…›‘ˆ–Š‡‹–‡†ƒ–‹‘•”‰ƒ‹•ƒ–‹‘‘”ƒ›—Ž–‹Žƒ–‡”ƒŽ ‹ƒ…‹ƒŽ•–‹–—–‹‘ƒ†”‰ƒ‹•ƒ–‹‘
‘–‹ϐ‹‡† —†‡” –Š‡ ‹–‡† ƒ–‹‘• ȋ”‹˜‹Ž‡‰‡• ƒ† —‹–‹‡•Ȍ …–ǡ ͳͻͶ͹ǡ ‘•—Žƒ–‡ ‘” „ƒ••› ‘ˆ ˆ‘”‡‹‰
…‘—–”‹‡•‘”ƒ›‘–Š‡”’‡”•‘‘”…Žƒ••‘ˆ’‡”•‘•ǡƒ•‘–‹ϐ‹‡†—†‡”‡…–‹‘ͷͷǡ‡–‹–Ž‡†–‘ƒ”‡ˆ—†‘ˆ–ƒš’ƒ‹†„›‹–‘
‹™ƒ”†•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡƒ›ƒ‡ƒƒ’’Ž‹…ƒ–‹‘ˆ‘”•—…Š”‡ˆ—†ǡ‹•—…Šˆ‘” ƒ†ƒ‡”ƒ•
ƒ›„‡’”‡•…”‹„‡†ǡ„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ•‹š‘–Š•ˆ”‘–Š‡Žƒ•–†ƒ›‘ˆ–Š‡“—ƒ”–‡”‹™Š‹…Š•—…Š •—’’Ž›™ƒ•”‡…‡‹˜‡†Ǥ
‘™‡˜‡”ǡ˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘ǤʹͲȀʹͲͳͺǦǤǤǡ†ƒ–‡†ʹͺǦ͵ǦʹͲͳͺǡ‹‡š‡”…‹•‡‘ˆ–Š‡’‘™‡”•…‘ˆ‡””‡†„›•‡…–‹‘ͳͶͺ
‘ˆ–Š‡•ƒ‹†…–ǡ–Š‡‡–”ƒŽ
‘˜‡”‡–ǡŠƒ•ƒŽŽ‘™‡†–Š‡’‡”•‘•‘–‹ϐ‹‡†—†‡”‡…–‹‘ͷͷ–‘ϐ‹Ž‡”‡ˆ—†ƒ’’Ž‹…ƒ–‹‘
„‡ˆ‘”‡–Š‡‡š’‹”›‘ˆ‡‹‰Š–‡‡‘–Š•ˆ”‘–Š‡Žƒ•–†ƒ–‡‘ˆ–Š‡“—ƒ”–‡”‹™Š‹…Š•—…Š•—’’Ž›™ƒ• ”‡…‡‹˜‡†Ǥ

Refund of un-utilised Input Tax Credit

‡…–‹‘ͷͶȋ͵Ȍ‘ˆ
…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ–ǡ•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷͶȋͳͲȌǡƒ”‡‰‹•–‡”‡†’‡”•‘ƒ›
…Žƒ‹”‡ˆ—†‘ˆƒ›—Ǧ—–‹Ž‹•‡†‹’—––ƒš…”‡†‹–ƒ––Š‡‡†‘ˆƒ›–ƒš’‡”‹‘†ǡ•—„Œ‡…––‘’”‘˜‹•‹‘•—†‡”–Š‡•‡…–‹‘
‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ȋ‹Ȍ œ‡”‘”ƒ–‡†•—’’Ž‹‡•ƒ†‡™‹–Š‘—–’ƒ›‡–‘ˆ–ƒšǢ
ȋ‹‹Ȍ ™Š‡”‡–Š‡…”‡†‹–Šƒ•ƒ……——Žƒ–‡†‘ƒ……‘—–‘ˆ”ƒ–‡‘ˆ–ƒš‘‹’—–•„‡‹‰Š‹‰Š‡”–Šƒ–Š‡”ƒ–‡‘ˆ–ƒš‘
‘—–’—–•—’’Ž‹‡•ȋ‘–Š‡”–Šƒ‹Ž”ƒ–‡†‘”ˆ—ŽŽ›‡š‡’–•—’’Ž‹‡•Ȍ
‘™‡˜‡”ǡ”‡ˆ—†‘ˆ——–‹Ž‹œ‡†’—–ƒš”‡†‹–•ŠƒŽŽ‘–„‡ƒŽŽ‘™‡†‹–Š‡ˆ‘ŽŽ‘™‹‰…ƒ•‡•ǣ
ȋ‹Ȍ ™Š‡”‡–Š‡‰‘‘†•‡š’‘”–‡†‘—–‘ˆ†‹ƒƒ”‡•—„Œ‡…–‡†–‘‡š’‘”–†—–›ǣ
ȋ‹‹Ȍ ‹ˆ–Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ˜ƒ‹Ž•‘ˆ†”ƒ™„ƒ…‹”‡•’‡…–‘ˆ…‡–”ƒŽ–ƒš‘”…Žƒ‹•”‡ˆ—†‘ˆ–Š‡
‹–‡‰”ƒ–‡†–ƒš’ƒ‹†‘•—…Š•—’’Ž‹‡•Ǥ
‡…–‹‘ͷͶȋͶȌǡȋͷȌƬȋ͹Ȍƒ†ƒ–‡–Šƒ–ƒˆ–‡””‡…‡‹’–‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘‘”†‡…Žƒ”ƒ–‹‘ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹ˆ–Š‡
’”‘’‡”‘ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ––Š‡™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡ƒ‘—–…Žƒ‹‡†ƒ•”‡ˆ—†‹•”‡ˆ—†ƒ„Ž‡ǡŠ‡ƒ›ƒ‡ƒ
‘”†‡”™‹–Š‹•‹š–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘ƒ†–Š‡ƒ‘—–•‘†‡–‡”‹‡†•ŠƒŽŽ„‡…”‡†‹–‡†–‘
–Š‡‘•—‡”‡Žˆƒ”‡ —†Ǥ‘™‡˜‡”ǡ–Š‡”‡ˆ—†ƒ„Ž‡ƒ‘—–•ŠƒŽŽǡ‹•–‡ƒ†‘ˆ„‡‹‰…”‡†‹–‡†–‘–Š‡ —†ǡ„‡’ƒ‹†
–‘–Š‡ƒ’’Ž‹…ƒ–ǡ‹ˆ•—…Šƒ‘—–‹•”‡Žƒ–ƒ„Ž‡–‘Ȃ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 765

ƒǤ ”‡ˆ—†‘ˆ–ƒš’ƒ‹†‘‡š’‘”–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š‘”‘‹’—–•‘”‹’—–•‡”˜‹…‡•—•‡†‹ƒ‹‰•—…Š
‡š’‘”–Ǣ
„Ǥ ”‡ˆ—†‘ˆ——–‹Ž‹•‡†‹’—––ƒš…”‡†‹–—†‡”•—„Ǧ•‡…–‹‘ȋ͵ȌǢ
…Ǥ ”‡ˆ—†‘ˆ–ƒš’ƒ‹†‘ƒ•—’’Ž›™Š‹…Š‹•‘–’”‘˜‹†‡†ǡ‡‹–Š‡”™Š‘ŽŽ›‘”’ƒ”–‹ƒŽŽ›ǡƒ†ˆ‘”™Š‹…Š‹˜‘‹…‡Šƒ•‘–
„‡‡‹••—‡†ǡ‘”™Š‡”‡ƒ”‡ˆ—†˜‘—…Š‡”Šƒ•„‡‡‹••—‡†Ǣ
†Ǥ ”‡ˆ—†‘ˆ–ƒš‹’—”•—ƒ…‡‘ˆ•‡…–‹‘͹͹Ǣ
‡Ǥ –Š‡–ƒšƒ†‹–‡”‡•–ǡ‹ˆƒ›ǡ‘”ƒ›‘–Š‡”ƒ‘—–’ƒ‹†„›–Š‡ƒ’’Ž‹…ƒ–ǡ‹ˆŠ‡Šƒ†‘–’ƒ••‡†‘–Š‡‹…‹†‡…‡
‘ˆ•—…Š–ƒšƒ†‹–‡”‡•––‘ƒ›‘–Š‡”’‡”•‘Ǣ‘”
ˆǤ –Š‡–ƒš‘”‹–‡”‡•–„‘”‡„›•—…Š‘–Š‡”…Žƒ••‘ˆƒ’’Ž‹…ƒ–•ƒ•–Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•
‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›Ǥ
Refund of taxes to the retail outlets established in departure area of an international Airport beyond
immigration counters making tax free supply to an outgoing international tourist (Rule 95A of CGST Rules)
‡–ƒ‹Ž‘—–Ž‡–‡•–ƒ„Ž‹•Š‡†‹†‡’ƒ”–—”‡ƒ”‡ƒ‘ˆƒ‹–‡”ƒ–‹‘ƒŽƒ‹”’‘”–ǡ„‡›‘†–Š‡‹‹‰”ƒ–‹‘…‘—–‡”•ǡ•—’’Ž›‹‰
‹†‹‰‡‘—•‰‘‘†•–‘ƒ‘—–‰‘‹‰‹–‡”ƒ–‹‘ƒŽ–‘—”‹•–™Š‘‹•Ž‡ƒ˜‹‰†‹ƒ•ŠƒŽŽ„‡‡Ž‹‰‹„Ž‡–‘…Žƒ‹”‡ˆ—†‘ˆ–ƒš
’ƒ‹†„›‹–‘‹™ƒ”†•—’’Ž›‘ˆ•—…Š‰‘‘†•ǤŠ‡”‡ˆ—†‘ˆ–ƒš’ƒ‹†„›–Š‡•ƒ‹†”‡–ƒ‹Ž‘—–Ž‡–•ŠƒŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡‹ˆǦ
ȋƒȌ –Š‡‹™ƒ”†•—’’Ž‹‡•‘ˆ‰‘‘†•™‡”‡”‡…‡‹˜‡†„›–Š‡•ƒ‹†”‡–ƒ‹Ž‘—–Ž‡–ˆ”‘ƒ”‡‰‹•–‡”‡†’‡”•‘ƒ‰ƒ‹•–ƒ–ƒš
‹˜‘‹…‡Ǣ
ȋ„Ȍ –Š‡ •ƒ‹† ‰‘‘†• ™‡”‡ •—’’Ž‹‡† „› –Š‡ •ƒ‹† ”‡–ƒ‹Ž ‘—–Ž‡– –‘ ƒ ‘—–‰‘‹‰ ‹–‡”ƒ–‹‘ƒŽ –‘—”‹•– ƒ‰ƒ‹•– ˆ‘”‡‹‰
‡š…Šƒ‰‡™‹–Š‘—–…Šƒ”‰‹‰ƒ›–ƒšǢ
ȋ…Ȍ ƒ‡ƒ†
‘‘†•ƒ†‡”˜‹…‡•ƒš†‡–‹ϐ‹…ƒ–‹‘—„‡”‘ˆ–Š‡”‡–ƒ‹Ž‘—–Ž‡–‹•‡–‹‘‡†‹–Š‡–ƒš‹˜‘‹…‡
ˆ‘”–Š‡‹™ƒ”†•—’’Ž›Ǣƒ†
ȋ†Ȍ •—…Š‘–Š‡””‡•–”‹…–‹‘•‘”…‘†‹–‹‘•ǡƒ•ƒ›„‡•’‡…‹ϐ‹‡†ǡƒ”‡•ƒ–‹•ϐ‹‡†Ǥ
Interest on delayed refunds [Section 56]
‡…–‹‘ͷ͸‘ˆ–Š‡
…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ–‹ˆƒ›–ƒš‘”†‡”‡†–‘„‡”‡ˆ—†‡†—†‡”•‡…–‹‘ͷͶ‹•‘–”‡ˆ—†‡†
™‹–Š‹•‹š–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘‹–‡”‡•–ƒ–•—…Š”ƒ–‡‘–‡š…‡‡†‹‰•‹š’‡”…‡–ƒ•ƒ›„‡
•’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘‹••—‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Ž•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡‹
”‡•’‡…–‘ˆ•—…Š”‡ˆ—†ˆ”‘–Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ƒˆ–‡”–Š‡‡š’‹”›‘ˆ•‹š–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘
—†‡”–Š‡•ƒ‹†•—„Ǧ•‡…–‹‘–‹ŽŽ–Š‡†ƒ–‡‘ˆ”‡ˆ—†‘ˆ•—…Š–ƒšǤ
Š‡”‡ƒ›…Žƒ‹‘ˆ”‡ˆ—†ƒ”‹•‡•ˆ”‘ƒ‘”†‡”’ƒ••‡†„›ƒƒ†Œ—†‹…ƒ–‹‰ƒ—–Š‘”‹–›‘”’’‡ŽŽƒ–‡—–Š‘”‹–›‘”
’’‡ŽŽƒ–‡”‹„—ƒŽ‘”…‘—”–™Š‹…ŠŠƒ•ƒ––ƒ‹‡†ˆ‹ƒŽ‹–›ƒ†–Š‡•ƒ‡‹•‘–”‡ˆ—†‡†™‹–Š‹•‹š–›†ƒ›•ˆ”‘–Š‡
†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘ˆ‹Ž‡†…‘•‡“—‡––‘•—…Š‘”†‡”ǡ‹–‡”‡•–ƒ–•—…Š”ƒ–‡‘–‡š…‡‡†‹‰‹‡’‡”…‡–
ƒ•ƒ›„‡‘–‹ˆ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Ž•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡‹”‡•’‡…–‘ˆ
•—…Š”‡ˆ—†ˆ”‘–Š‡†ƒ–‡‹‡†‹ƒ–‡Ž›ƒˆ–‡”–Š‡‡š’‹”›‘ˆ•‹š–›†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘–‹ŽŽ
–Š‡†ƒ–‡‘ˆ”‡ˆ—†Ǥ

‡ˆ—†ƒ›„‡…Žƒ‹‡†‹ˆ‘ŽŽ‘™‹‰•‹–—ƒ–‹‘•ǣ

Ȉ

‘‘†•Ȁ‡”˜‹…‡•Ȁ„‘–Šƒ”‡‡š’‘”–‡†Ȁ•—’’Ž‹‡†–‘ƒ‘’ƒ›‡–‘ˆ
ƒ†ƒ”‡ˆ—†‘ˆ
† Ȁ ‹ Ȁ„ Š †Ȁ Ž‹ † 
•—…Š
•‘’ƒ‹†‹•…Žƒ‹‡†Ǣ
Ȉ ‡ˆ—†…Žƒ‹ˆ‘”ƒ……——Žƒ–‡†——–‹Ž‹•‡†ǡ‹…ƒ•‡‘ˆ•—’’Ž‹‡•–‘ƒȀ‡š’‘”–•‘ˆ‰‘‘†•Ȁ
•‡”˜‹…‡•Ȁ„‘–ŠǢ
Ȉ ‡ˆ—†…Žƒ‹ˆ‘”ƒ……——Žƒ–‡†——–‹Ž‹•‡†ǡ‹…ƒ•‡‘ˆ•—’’Ž‹‡•‘ƒ……‘—–‘ˆƒ‹˜‡”–‡††—–›
•–”—…–—”‡Ǣ
Ȉ ‡ˆ—†‘ˆƒ›„ƒŽƒ…‡‹–Š‡‡Ž‡…–”‘‹……ƒ•ŠŽ‡†‰‡”ƒˆ–‡”’ƒ›‡–‘ˆ–ƒšȀ‹–‡”‡•–Ȁ’‡ƒŽ–›Ǣƒ†
Ȉ ϐ‹ƒŽ‹œƒ–‹‘‘ˆ’”‘˜‹•‹‘ƒŽƒ••‡••‡–‹ˆ–ƒš„‡…‘‡•”‡ˆ—†ƒ„Ž‡–‘–Š‡ƒ••‡••‡‡•Ǥ
 766 Lesson 15 Ȉ EP-TL

‘‡ˆ—†•ŠƒŽŽ„‡ƒŽŽ‘™‡†‹ˆǣ

Ȉ Š
Š‡‰‘‘†••‘‡š’‘”–‡†ƒ”‡•—„Œ‡…––‘‡š’‘”–†—–›Ǥ
† † „ †
Ȉ Š‡•—’’Ž‹‡”‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–ŠŠƒ•Ž‘†‰‡†‹’ƒ”ƒŽŽ‡Žƒ†—–›†”ƒ™„ƒ……Žƒ‹•‹
”‡•’‡…–‘ˆ
‘–Š‡‹™ƒ”†‹’‘”–‡†•—’’Ž‹‡•Ǥ

Time limit
› ’‡”•‘ …Žƒ‹‹‰ ƒ ”‡ˆ—† ‘ˆ –ƒšȀ‹–‡”‡•–Ȁƒ› ƒ‡ ƒ ƒ’’Ž‹…ƒ–‹‘ „‡ˆ‘”‡ ‡š’‹”› ‘ˆ 2 years ˆ”‘ –Š‡
Dz‡Ž‡˜ƒ– ƒ–‡dzǤ ‘™‡˜‡”ǡ ƒ ’‡”•‘ …Žƒ‹‹‰ ƒ ”‡ˆ—† ‘ˆ ——–‹Ž‹•‡†  ‹ …ƒ•‡ ‘ˆ œ‡”‘ ”ƒ–‡† •—’’Ž‹‡•ǡ ‘”
ƒ……——Žƒ–‡†‹…ƒ•‡‘ˆ‹˜‡”–‡††—–›•–”—…–—”‡•ƒ›†‘•‘ƒ––Š‡‡†‘ˆƒ›–ƒš’‡”‹‘†Ǥ

Relevant Date
Ȉ Š‡”‡‰‘‘†•ƒ”‡‡š’‘”–‡†„›ƒ‹”Ȁ•‡ƒ
o ƒ–‡‘™Š‹…Š–Š‡˜‡••‡ŽŽ‡ƒ˜‡•†‹ƒ
Ȉ Š‡‰‘‘†•ƒ”‡‡š’‘”–‡†„›Žƒ†
o ƒ–‡‘™Š‹…Š–Š‡‰‘‘†•’ƒ••–Š‡ˆ”‘–‹‡”•
Ȉ Š‡”‡ˆ—†‘ˆ——–‹Ž‹•‡†‹…ƒ•‡‘ˆœ‡”‘”ƒ–‡†•—’’Ž‹‡•ǡ‘”ƒ……——Žƒ–‡†‹…ƒ•‡‘ˆ‹˜‡”–‡††—–›
•–”—…–—”‡•‹•…Žƒ‹‡†
o †‘ˆ–Š‡ ‹ƒ…‹ƒŽ‡ƒ”‹™Š‹…Š•—…Š…Žƒ‹ˆ‘””‡ˆ—†ƒ”‹•‡•
Ȉ …ƒ•‡‘ˆ”‡ˆ—†ƒ”‹•‹‰‘—–‘ˆϐ‹ƒŽ‹•ƒ–‹‘‘ˆ’”‘˜‹•‹‘ƒŽƒ••‡••‡–
o ƒ–‡‘ˆƒ†Œ—•–‡–‘ˆ–ƒšƒˆ–‡”–Š‡ϐ‹ƒŽƒ••‡••‡–
Ȉ ›‘–Š‡”…ƒ•‡
o ƒ–‡‘ˆ’ƒ›‡–‘ˆ–ƒš

Application for Refund

‡…–‹‘ ͷͶ •–ƒ–‡• –Šƒ– ƒ› ’‡”•‘ …Žƒ‹‹‰ ƒ ”‡ˆ—† ƒ› ϐ‹Ž‡ ƒ ƒ’’Ž‹…ƒ–‹‘ ‹ ˆ‘”
Ǧ ǦͲͳ ‡Ž‡…–”‘‹…ƒŽŽ›
–Š”‘—‰Š–Š‡
’‘”–ƒŽǤ

…ƒ•‡‘ˆƒ†˜ƒ…‡–ƒš†‡’‘•‹–•ƒ†‡„›ƒ…ƒ•—ƒŽ–ƒšƒ„Ž‡’‡”•‘ƒ‘Ǧ”‡•‹†‡––ƒšƒ„Ž‡’‡”•‘ǡ–Š‡•ƒ‡•ŠƒŽŽ„‡
”‡ˆ—†‡†‘Ž›™Š‡•—…Š’‡”•‘Šƒ•ǡ‹”‡•’‡…–‘ˆ–Š‡‡–‹”‡’‡”‹‘†ˆ‘”™Š‹…Š–Š‡…‡”–‹ϐ‹…ƒ–‡‘ˆ”‡‰‹•–”ƒ–‹‘‰”ƒ–‡†
™ƒ•‹ˆ‘”…‡ǡϐ‹Ž‡†ƒŽŽ–Š‡”‡–—”•—†‡”‡…–‹‘͵ͻǤŽ•‘ǡ–Š‡ƒ†˜ƒ…‡–ƒš•‘’ƒ‹†ǡƒˆ–‡”ƒ†Œ—•–‹‰ƒ›Ž‹ƒ„‹Ž‹–›•ŠƒŽŽ
„‡…Žƒ‹‡†‹–Š‡Žƒ•–”‡–—”•‘ϐ‹Ž‡†Ǥ
Documentation and Declaration
Š‡”‡ˆ—†ƒ’’Ž‹…ƒ–‹‘—•–„‡ƒ……‘’ƒ‹‡†™‹–Š–Š‡‡…‡••ƒ”›†‘…—‡–ƒ–‹‘Ǥ††‹–‹‘ƒŽŽ›ǡ™Š‡”‡–Š‡ƒ‘—–‘ˆ
”‡ˆ—†…Žƒ‹‡††‘‡•ǯ–‡š…‡‡†ʹͲͲǡͲͲͲǡ–Š‡”‡ˆ—†ƒ’’Ž‹…ƒ–‹‘—•–„‡ƒ……‘’ƒ‹‡†™‹–Šƒ†‡…Žƒ”ƒ–‹‘–Šƒ––Š‡
‹…‹†‡…‡‘ˆ–ƒšŠƒ•‘–„‡‡’ƒ••‡†‘–‘ƒ›‘–Š‡”’‡”•‘ƒ†–Šƒ––Š‡”‡ˆ‘”‡–Š‡”‡™‘—Ž†ǯ–„‡—Œ—•–‡”‹…‡–Ǥ
‘™‡˜‡”ǡ™Š‡”‡–Š‡ƒ‘—–‘ˆ”‡ˆ—†…Žƒ‹‡†‹•‰”‡ƒ–‡”–ŠƒʹͲͲǡͲͲͲǡƒ…‡”–‹ϐ‹…ƒ–‡ƒ•ƒ’ƒ”–‘ˆ ‘”
Ǧ Ǧ
Ͳͳ„›ƒŠƒ”–‡”‡†……‘—–ƒ–‘”ƒ‘•–……‘—–ƒ––‘–Š‡‡ˆˆ‡…––Šƒ––Š‡”‡‹•‘—Œ—•–‡”‹…Š‡–ƒ†–Šƒ––Š‡–ƒš
‹…‹†‡…‡Šƒ•‘–„‡‡’ƒ••‡†‘–‘ƒ›‘–Š‡”’‡”•‘ǡ™‘—Ž†„‡”‡“—‹”‡†–‘„‡•—„‹––‡†ƒŽ‘‰™‹–Š–Š‡”‡ˆ—†
ƒ’’Ž‹…ƒ–‹‘Ǥ

Refund Amount
—Ž‡ͺͻȋͶȌ•–ƒ–‡•–Šƒ–‹–Š‡…ƒ•‡‘ˆœ‡”‘Ǧ”ƒ–‡†•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™‹–Š‘—–’ƒ›‡–‘ˆ–ƒš—†‡”
„‘†‘”Ž‡––‡”‘ˆ—†‡”–ƒ‹‰‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ‘ˆ•‡…–‹‘ͳ͸‘ˆ–Š‡ –‡‰”ƒ–‡†

‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ǡ”‡ˆ—†‘ˆ‹’—––ƒš…”‡†‹–•ŠƒŽŽ„‡‰”ƒ–‡†ƒ•’‡”–Š‡ˆ‘”—Žƒ ‡–‹‘‡†–Š‡”‡„›Ǥ
 Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 767

—Ž‡ͺͻȋͷȌ•–ƒ–‡•–Šƒ–‹…ƒ•‡‘ˆ‹˜‡”–‡††—–›•–”—…–—”‡•—’’Ž‹‡•‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•Ȁ„‘–ŠǢ”‡ˆ—†‘ˆ–ƒš™‘—Ž† „‡
‰”ƒ–‡†’”‘’‘”–‹‘ƒ–‡Ž›ǡ‹Ǥ‡Ǥǡƒ•’‡”–Š‡ˆ‘”—Žƒ‡–‹‘‡†–Š‡”‡‹Ǥ

Refund Order
Š‡”‡ˆ—†‘”†‡”•Š‘—Ž†„‡ƒ†‡„›–Š‡’”‘’‡”‘ˆϐ‹…‡”™‹–Š‹͸Ͳ†ƒ›•ˆ”‘†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘ǡ™Š‹…Š‹•
…‘’Ž‡–‡‹ƒŽŽ”‡•’‡…–•Ǥ
Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ–ƒ‘—–•‘”‡ˆ—†ƒ„Ž‡‹•’ƒ›ƒ„Ž‡–‘ƒƒ’’Ž‹…ƒ–ǡŠ‡•ŠƒŽŽƒ‡ƒ‘”†‡”
‹ˆ‘”
Ǧ ǦͲ͸ƒ†–Š‡•ƒ‡™‹ŽŽ–Š‡„‡…”‡†‹–‡†–‘–Š‡ƒ……‘—–‘ˆ–Š‡ƒ’’Ž‹…ƒ–Ǥ

Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”‹••ƒ–‹•ϐ‹‡†–Šƒ–ƒ‘—–•‘”‡ˆ—†ƒ„Ž‡‹•‘–’ƒ›ƒ„Ž‡–‘ƒ›ƒ’’Ž‹…ƒ– per se,Š‡•ŠƒŽŽƒ‡

ƒ‘”†‡”‹ˆ‘”
Ǧ ǦͲ͸ƒ†–Š‡•ƒ‡™‹ŽŽ–Š‡„‡…”‡†‹–‡†–‘–Š‡‘•—‡”‡Žˆƒ”‡ —†Ǥ
Interest
Š‡”‡ƒ›–ƒš‘”†‡”‡†–‘„‡”‡ˆ—†‡†—†‡”‡…–‹‘ͷͶǡ‹•‘–”‡ˆ—†‡†–‘–Š‡ƒ’’Ž‹…ƒ–™‹–Š‹͸Ͳ†ƒ›•ˆ”‘ –Š‡
†ƒ–‡‘ˆ”‡…‡‹’–‘ˆƒ’’Ž‹…ƒ–‹‘ǡ‹–‡”‡•–•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡–‘–Š‡ƒ’’Ž‹…ƒ–ƒ––Š‡”ƒ–‡‘ˆ͸Ψ’ǤƒǤƒ†–Š‡•ƒ‡•ŠƒŽŽ„‡
’ƒ›ƒ„Ž‡‹‡†‹ƒ–‡Ž›‘‡š’‹”›‘ˆ͸Ͳ†ƒ›•ƒ†—–‹Ž–Š‡†ƒ–‡‘ˆ”‡ˆ—†Ǥ
Ž•‘ǡ™Š‡”‡–Š‡”‡ˆ—†ƒ”‹•‡•‘—–‘ˆƒƒ’’‡ƒŽǡƒ†–Š‡•ƒ‡‹•‘–”‡ˆ—†‡†™‹–Š‹͸Ͳ†ƒ›•ˆ”‘†ƒ–‡‘ˆ”‡…‡‹’– ‘ˆ
ƒ’’Ž‹…ƒ–‹‘ǡ‹–‡”‡•–•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡ƒ––Š‡”ƒ–‡‘ˆͻΨ’ǤƒǤǡƒ†–Š‡•ƒ‡•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡‹‡†‹ƒ–‡Ž›‘‡š’‹”›‘ˆ
͸Ͳ†ƒ›•ƒ†—–‹Ž–Š‡†ƒ–‡‘ˆ”‡ˆ—†Ǥ

AUDIT
—†‹–—†‡”
‘‘†•Ƭ‡”˜‹…‡•ƒš…ƒ„‡‘ˆ–™‘–›’‡•ǡƒ•†‹•…—••‡†—†‡”Ǥ

General Audit [Section 65]

‡…–‹‘͸ͷ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ––Š‡‘‹••‹‘‡”‘”ƒ›‘ˆϐ‹…‡”•‘ƒ—–Š‘”‹•‡† „›
Š‹ǡ„›™ƒ›‘ˆƒ‰‡‡”ƒŽ‘”•’‡…‹ϐ‹…‘”†‡”ǡƒ›—†‡”–ƒ‡–Š‡ƒ—†‹–‘ˆƒ›”‡‰‹•–‡”‡†’‡”•‘ǡƒ––Š‡’Žƒ…‡‘ˆ„—•‹‡••
‘ˆ•—…Š”‡‰‹•–‡”‡†’‡”•‘‘”‹–Š‡‹”‘ˆϐ‹…‡ˆ‘”ƒ ‹ƒ…‹ƒŽ‡ƒ”‘”—Ž–‹’Ž‡•–Š‡”‡‘ˆǤ
Timelines
‘–‹…‡ ‘ˆ ͳͷ †ƒ›• ‹• ”‡“—‹”‡† –‘ „‡ ‰‹˜‡ ’”‹‘” –‘ –Š‡ …‘†—…– ‘ˆ –Š‡ ƒ—†‹–ǡ „› –Š‡ ’”‘’‡” ‘ˆϐ‹…‡”ǡ ™Š‡”‡ ‹– ‹•
†‡…‹†‡†–‘—†‡”–ƒ‡–Š‡ƒ—†‹–‘ˆƒ”‡‰‹•–‡”‡†’‡”•‘Ǥ‘‡…‡‡–‘ˆƒ—†‹–™‘—Ž†‡ƒŽƒ–‡”‘ˆǣ

‘ ƒ–‡ ‘ ™Š‹…Š –Š‡ ƒ……‘—–•Ȁ”‡…‘”†• –Šƒ– Šƒ˜‡ „‡‡ …ƒŽŽ‡† ˆ‘” ‹•’‡…–‹‘Ȁ˜‡”‹ϐ‹…ƒ–‹‘ǡ Šƒ˜‡ „‡‡ƒ†‡
ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡
‘ Š‡ƒ…–—ƒŽ‹•–‹–—–‹‘‘ˆ–Š‡ƒ—†‹–ƒ––Š‡’Žƒ…‡‘ˆ„—•‹‡••‘ˆ–ƒš’ƒ›‡”
Š‡ ƒ—†‹– ‹• ”‡“—‹”‡† –‘ „‡ …‘’Ž‡–‡† ™‹–Š‹ ͵ ‘–Š• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ …‘‡…‡‡– ‘ˆ •—…Š ƒ—†‹–Ǥ Š‹•
’‡”‹‘†‹•‡š–‡†ƒ„Ž‡ˆ‘”ƒ‘–Š‡”͸‘–Š•ȋƒš‹—Ȍ„›–Š‡‘‹••‹‘‡”Ǥ

Procedure
Š‡’”‘’‡”‘ˆϐ‹…‡”•‘ƒ—–Š‘”‹•‡†–‘…‘†—…––Š‡ƒ—†‹–ǡ•ŠƒŽŽ™‹–Š–Š‡ƒ••‹•–ƒ…‡‘ˆ–Š‡–‡ƒ‡„‡”•ƒ••‹‰‡†–‘
Š‹ǡ˜‡”‹ˆ›ƒŽŽ–Š‡‡…‡••ƒ”›ƒ……‘—–•Ȁ„‘‘•Ȁ”‡…‘”†•Ǥ
—”‹‰–Š‡…‘—”•‡‘ˆ–Š‡ƒ—†‹–ǡ–Š‡ƒ—–Š‘”‹•‡†‘ˆϐ‹…‡”ƒ›”‡“—‹”‡–Š‡”‡‰‹•–‡”‡†’‡”•‘ǡ–‘ˆƒ…‹Ž‹–ƒ–‡–Š‡˜‡”‹ϐ‹…ƒ–‹‘
‘ˆƒ……‘—–•Ȁ„‘‘•Ȁ”‡…‘”†•‘”–‘’”‘˜‹†‡•—…Š‹ˆ‘”ƒ–‹‘Ȁ†‡–ƒ‹Ž•ǡƒ•–Š‡ƒ—–Š‘”‹–‹‡•ƒ›”‡“—‹”‡ˆ‘”ƒ…‘’Ž‡–‡
ƒ†–‹‡Ž›…‘†—…–‘ˆƒ—†‹–Ǥ
Š‡’”‘’‡”‘ˆϐ‹…‡”™‹ŽŽ–Š‡‹ˆ‘”–Š‡”‡‰‹•–‡”‡†’‡”•‘‘ˆ–Š‡†‹•…”‡’ƒ…‹‡•‘–‹…‡†ǡƒ†Š‹•ƒ—†‹–‘„•‡”˜ƒ–‹‘•
–‘™Š‹…Š–Š‡”‡‰‹•–‡”‡†’‡”•‘™‹ŽŽ”‡•’‘†–‘™‹–ŠŠ‹•ˆƒ…–—ƒŽ†‡–ƒ‹Ž•ǡƒ†’‘•–™Š‹…Š–Š‡ƒ—†‹–ϐ‹†‹‰•™‹ŽŽ„‡
ϐ‹ƒŽ‹•‡†ƒˆ–‡”‡˜ƒŽ—ƒ–‹‘‘ˆ–Š‡•‡”‡•’‘•‡•–‘–Š‡‘„•‡”˜ƒ–‹‘•Ǥ
Finalisation
Š‡ ’”‘’‡” ‘ˆϐ‹…‡” •ŠƒŽŽ ™‹–Š‹ ͵Ͳ †ƒ›•ǡ ‹ˆ‘”• –Š‡ ”‡‰‹•–‡”‡† ’‡”•‘ǡ ™Š‘•‡ ƒ……‘—–• ƒ† ”‡…‘”†• ƒ”‡ „‡‹‰
ƒ—†‹–‡†ǡƒ„‘—––Š‡ϐ‹†‹‰•Ǥ
 768 Lesson 15 Ȉ EP-TL

Special Audit [Section 66]

‡…–‹‘ ͸͸ ‘ˆ ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹•–ƒ–‡•–Šƒ–™Š‡”‡ƒ›‘ˆϐ‹…‡”‘–„‡Ž‘™–Š‡”ƒ‘ˆ••‹•–ƒ–
‘‹••‹‘‡”Šƒ˜‹‰”‡‰ƒ”†–‘–Š‡…‘’Ž‡š‹–›‘ˆ–Š‡…ƒ•‡ƒ†‹–Š‡‹–‡”‡•–‘ˆ”‡˜‡—‡ǡ‹•‘ˆ–Š‡‘’‹‹‘–Šƒ––Š‡
Ž‹ƒ„‹Ž‹–›Šƒ•‘–„‡‡…‘””‡…–Ž›†‡…Žƒ”‡†‘”–Š‡’—–ƒš”‡†‹–‹•ƒ˜ƒ‹Ž‡†‹‡š…‡••ǡŠ‡ƒ›ǡ™‹–Š’”‹‘”ƒ’’”‘˜ƒŽˆ”‘
‘‹••‹‘‡”ǡ ‹••—‡ ƒ †‹”‡…–‹‘ –‘ –Š‡ ”‡‰‹•–‡”‡† ’‡”•‘ –‘ ‰‡– Š‹• ƒ……‘—–• Ȁ ”‡…‘”†• ƒ—†‹–‡† „› ƒ Šƒ”–‡”‡†
……‘—–ƒ–Ȁ‘•–……‘—–ƒ–ǡƒ•‘‹ƒ–‡†„›–Š‡‘‹••‹‘‡”Ǥ

Timelines

Š‡Šƒ”–‡”‡†……‘—–ƒ–Ȁ‘•–……‘—–ƒ–ƒ•‘‹ƒ–‡†„›–Š‡‘‹••‹‘‡”•ŠƒŽŽ•—„‹–ƒƒ—†‹–”‡’‘”–†—Ž›
•‹‰‡† ƒ† …‡”–‹ϐ‹‡† „› Š‹•‡Žˆǡ ™‹–Š‹ ͻͲ †ƒ›• ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ …‘‡…‡‡– ‘ˆ •—…Š ƒ—†‹–ǡ –‘ –Š‡••‹•–ƒ–
‘‹••‹‘‡”Ǥ Š‹• ’‡”‹‘† ‹• ‡š–‡†ƒ„Ž‡ ˆ‘” ƒ‘–Š‡” ͻͲ †ƒ›• ȋƒš‹—Ȍ „› –Š‡ ••‹•–ƒ– ‘‹••‹‘‡” ‘
”‡ƒ•‘ƒ„Ž‡ƒ†•—ˆϐ‹…‹‡–‰”‘—†•—’‘ƒ’’Ž‹…ƒ–‹‘Ǥ

Procedure
Š‡‡š’‡•‡•‘ˆ–Š‡ƒ—†‹–Ȁ‡šƒ‹ƒ–‹‘ƒ†–Š‡”‡—‡”ƒ–‹‘–‘–Š‡Šƒ”–‡”‡†……‘—–ƒ–Ȁ‘•–……‘—–ƒ– •ŠƒŽŽ
„‡†‡–‡”‹‡†ƒ†’ƒ‹†„›‘‹••‹‘‡”Ǥ

Finalisation
Š‡’”‘’‡”‘ˆϐ‹…‡”™‹ŽŽ–Š‡‹ˆ‘”–Š‡”‡‰‹•–‡”‡†’‡”•‘‘ˆ–Š‡†‹•…”‡’ƒ…‹‡•‘–‹…‡†ǡƒ†Š‹•ƒ—†‹–ϐ‹†‹‰•‘ˆ
•’‡…‹ƒŽƒ—†‹–ǤŠ‡”‡–Š‡•’‡…‹ƒŽƒ—†‹–”‡•—Ž–•‹†‡–‡…–‹‘‘ˆ–ƒš‘–’ƒ‹†Ȁ•Š‘”–’ƒ‹†Ȁ…”‡†‹–ƒ˜ƒ‹Ž‡†‹‡š…‡••ǡ –Š‡
’”‘…‡••‘ˆ†‡ƒ†Ȁ”‡…‘˜‡”›—†‡”‡…–‹‘͹͵ǡ͹Ͷ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ǡ™‹ŽŽ„‡‹‹–‹ƒ–‡†Ǥ
Š—•ǡ—†‹–—†‡”
‘‘†•Ƭ‡”˜‹…‡•ƒšƒ›„‡•—ƒ”‹•‡†ƒ•—†‡”ǣ

Audit

General Audit Special Audit

‘‹••‹‘‡”‘” ˆϐ‹…‡”‘–
ˆϐ‹…‡”ƒ—–Š‘”‹•‡† „‡Ž‘™ –Š‡”ƒ
„›‘‹••‹‘‡” ofAssistant
‘‹••‹‘‡”

‡‰ƒ”†–‘ƒ–—”‡
„›™ƒ›‘ˆ‰‡‡”ƒŽ ‘”…‘’Ž‡š‹–›
‘”•’‡…‹ƒŽ‘”†‡” of –Š‡…ƒ•‡ƒ†
the‹–‡”‡•–‘ˆ
”‡˜‡—‡
Lesson 15 Ȉ”‘…‡†—”ƒŽ‘’Ž‹ƒ…‡—†‡”
 769

LESSON ROUND-UP

Ȉ †‡”
ǡ”‡–—”ϐ‹Ž‹‰‹•Ž‹‡†–‘–Š‡’ƒ›‡–‘ˆ–ƒš
Ȉ ‹–Š‘—–ϐ‹Ž‹‰’‡†‹‰”‡–—”•ǡ…—””‡–”‡–—”•…ƒ‘–„‡ϐ‹Ž‡†
Ȉ ƒ›‹ŽŽ•›•–‡Šƒ•„‡‡‹–”‘†—…‡†—†‡”

Ȉ ‡“—‹”‡‡–•ƒ†‡š‡’–‹‘•ˆ”‘‡‰‹•–”ƒ–‹‘—†‡”
Šƒ˜‡„‡‡’”‘˜‹†‡†‹–Š‡Žƒ™
Ȉ ”‡‰‹•–‡”‡†’‡”•‘‹•”‡“—‹”‡†–‘ƒ‹–ƒ‹’”‡•…”‹„‡†‘‘•‘ˆ……‘—–•
Ȉ ›–”ƒ•ƒ…–‹‘—†‡”
‹•˜‘—…Š‡†„›˜ƒ”‹‘—•‹†•‘ˆ†‘…—‡–•‹…Ž—†‹‰‡„‹–Ȁ”‡†‹–‘–‡•ǡ ƒš
˜‘‹…‡ǡ‹ŽŽ‘ˆ—’’Ž›ƒ†‡Ž‹˜‡”›ŠƒŽŽƒ•
Ȉ ƒ”‹‘—•‘–ŠŽ›ǡ“—ƒ”–‡”Ž›ƒ†ƒ—ƒŽ”‡–—”•ƒ”‡ϐ‹Ž‡†—†‡”

Ȉ ƒ›‡–‘’–‹‘•ƒ˜ƒ‹Žƒ„Ž‡—†‡”
‹…Ž—†‡ ǡ
ǡ‡–„ƒ‹‰ǡ†‡„‹–Ȁ…”‡†‹–…ƒ”†
Ȉ —†‹–—†‡”
‹•‘ˆ–™‘–›’‡•Ǧ
‡‡”ƒŽƒ†’‡…‹ƒŽ
Ȉ ‰‘‘†•‰‡‡”ƒŽŽ›‘”•’‡…‹ϐ‹…ƒŽŽ›Ǥ

TEST YOURSELF

(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
—Ž–‹’Ž‡Š‘‹…‡—‡•–‹‘•ȋ•Ȍ
ͳǤ Š‹…Š•‡…–‹‘‘ˆ
…–ʹͲͳ͹†‡ƒŽ•™‹–Š‡”•‘•Ž‹ƒ„Ž‡ˆ‘””‡‰‹•–”ƒ–‹‘ǫ
ƒȌ ‡…–‹‘ʹͻ
„Ȍ ‡…–‹‘ʹʹ
…Ȍ ‡…–‹‘ͶͶ
†Ȍ ‡…–‹‘ͷͶ
•™‡”ǣȋ„Ȍ
ʹǤ
‹•ƒǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦ†‹‰‹–—„‡”
ƒȌ ͳͲ
„Ȍ ͳʹ
…Ȍ ͳͷ
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ
͵Ǥ ‘”ƒ‹–”ƒǦ–ƒ–‡•ƒŽ‡ǡ–Š‡–ƒš‡•…‘ŽŽ‡…–‡†ƒ”‡ǫ
ƒȌ 

„Ȍ 

…Ȍ ‘–Š‘ˆ–Š‡„‘˜‡
†Ȍ 

•™‡”ǣȋ…Ȍ
770 Lesson 15 Ȉ EP-TL

ͶǤ ‰‰”‡‰ƒ–‡—”‘˜‡”—†‡”
…–‹…Ž—†‡•
ƒȌ ŽŽ–ƒšƒ„Ž‡•—’’Ž‹‡•
„Ȍ š‡’–•—’’Ž‹‡•
…Ȍ ‡”‘Ǧ”ƒ–‡†•—’’Ž‹‡•
†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ†Ȍ
ͷǤ Š‡‘–‹ϐ‹‡†–Šƒ–‡Ǧ˜‘‹…‹‰™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡ˆ”‘’”‹ŽͲͳǡʹͲʹͳˆ‘”„—•‹‡••‡•™‹–Šƒ–—”‘˜‡”‘ˆ
‘”‡–Šƒ̴̴̴̴̴̴̴̴‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”ˆ”‘ ʹͲͳ͹Ǧͳͺ‘™ƒ”†•Ǥ
ƒȌ •ǤͷͲ”‘”‡•
„Ȍ •ǤͳͲͲ”‘”‡•
…Ȍ •ǤͳͷͲ”‘”‡•
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋƒȌ

LIST OF FURTHER READINGS

Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒšǡƒ™•ǡ‘…‡’–•ƒ†’ƒ…–ƒŽ›•‹•ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽƬƒŒ‡‡˜
Malhotra
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›
Ȉ …‘’Ž‡–‡‰—‹†‡–‘
‘‘†•Ƭ‡”˜‹…‡•ƒš‡ƒ†›‡…‘‡”‹Ƭ ‘”ƒ–ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜
‰ƒ”™ƒŽƬƒŒ‡‡˜ƒŽŠ‘–”ƒǤ
Ȉ –—†‡–•ƒ›ƒŽ•‘˜‹•‹–ǣȀȀ…„‹…Ǥ‰‘˜Ǥ‹Ȁˆ‘””‡‰—Žƒ”—’†ƒ–‡•‘
ƒ†‘–Š‡”†‹”‡…––ƒšŽƒ™•Ǥ
 Basic Overview on IGST, UTGST and
Lesson 16 GST Compensation to States Act
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ 

Ȉ 
 Ȉ ”‘˜‹•‹‘•‘ˆ
…–ǡʹͲͳ͹

Ȉ
‘’‡•ƒ–‹‘ Ȉ 
…–ǡʹͲͳ͹ƒ†‹–•™‘”‹‰
‡•• Ȉ ”‘˜‹•‹‘•‘ˆ
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡Ȍ…–ǡʹͲͳ͹
Ȉ –‡”Ǧ–ƒ–‡—’’Ž›
Ȉ –”ƒǦ–ƒ–‡—’’Ž›

Lesson Outline
Ȉ –”‘†—…–‹‘
Ȉ ‡‰—Žƒ–‘”› ”ƒ‡™‘”
Ȉ –‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹
Ȉ ‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹
Ȉ ”‘˜‹•‹‘•”‡Žƒ–‹‰–‘†˜ƒ…‡—Ž‹‰
Ȉ
‘’‡•ƒ–‹‘–‘–ƒ–‡•
Ȉ •‘

Ȉ 
Ȉ 
Ȉ   

772 Lesson 16 Ȉ EP-TL

Regulatory Framework
1. Integrated Goods and Services Tax Act, 2017

Section Deals with

‡…–‹‘ʹ ‡ϐ‹‹–‹‘•
‡…–‹‘ͷ ‡˜›ƒ†‘ŽŽ‡…–‹‘
‡…–‹‘ͳ͸ ‡”‘ƒ–‡†—’’Ž›
‡…–‹‘ʹͲ ’’Ž‹…ƒ–‹‘‘ˆ’”‘˜‹•‹‘•‘ˆ
…–

ʹǤ‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹

Section Deals with

‡…–‹‘͹ ‡˜›ƒ†‘ŽŽ‡…–‹‘
‡…–‹‘ͺ ‘™‡”–‘‰”ƒ–‡š‡’–‹‘ˆ”‘–ƒš
‡…–‹‘ͻ ƒ›‡–‘ˆƒš
‡…–‹‘ͻ –‹Ž‹•ƒ–‹‘‘ˆ’—–ƒš”‡†‹–
‡…–‹‘ͻ ”†‡”‘ˆ–‹Ž‹•ƒ–‹‘‘ˆ’—–ƒš”‡†‹–
‡…–‹‘ͳͲ ”ƒ•ˆ‡”‘ˆ‹’—––ƒš…”‡†‹–
‡…–‹‘ͳͶ †˜ƒ…‡—Ž‹‰‡ϐ‹‹–‹‘•
‡…–‹‘ͳͷ ‘•–‹–—–‹‘‘ˆ—–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰
‡…–‹‘ͳ͸ ‘•–‹–—–‹‘‘ˆ’’‡ŽŽƒ–‡—–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰
‡…–‹‘ͳͺ ”ƒ•‹–‹‘ƒŽƒ””ƒ‰‡‡–•ˆ‘”‹’—––ƒš…”‡†‹–
‡…–‹‘ʹʹ ‘™‡”–‘ƒ‡”—Ž‡•
‡…–‹‘ʹ͵
‡‡”ƒŽ‘™‡”–‘ƒ‡”‡‰—Žƒ–‹‘•
‡…–‹‘ʹͶ ˜‡”›”—Ž‡ƒ†‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ‡˜‡”›”‡‰—Žƒ–‹‘ƒ†‡„›–Š‡‘ƒ”†
‡…–‹‘ʹͷ ‘™‡”–‘‹••—‡‹•–”—…–‹‘•‘”†‹”‡…–‹‘•
‡…–‹‘ʹ͸ ‡‘˜ƒŽ‘ˆ‹ˆϐ‹…—Ž–‹‡•

3. Goods and Services Tax (Compensation to States) Act, 2017

Section Deals with

‡…–‹‘ʹ ‡ϐ‹‹–‹‘•
‡…–‹‘͵ ”‘Œ‡…–‡†
”‘™–Šƒ–‡
‡…–‹‘Ͷ ƒ•‡‡ƒ”
‡…–‹‘ͷ ƒ•‡›‡ƒ””‡˜‡—‡
‡…–‹‘͸ ”‘Œ‡…–‡†”‡˜‡—‡ˆ‘”ƒ››‡ƒ”
‡…–‹‘͹ ƒŽ…—Žƒ–‹‘ƒ†”‡Ž‡ƒ•‡‘ˆ…‘’‡•ƒ–‹‘
‡…–‹‘ͺ ‡˜›ƒ†‘ŽŽ‡…–‹‘‘ˆ‡••
‡…–‹‘ͻ ‡–—”•ǡƒ›‡–•ƒ†‡ˆ—†•
‡…–‹‘ͳͲ ”‡†‹–‹‰’”‘…‡‡†•‘ˆ…‡••–‘ —†
‡…–‹‘ͳͳ –Š‡””‘˜‹•‹‘•”‡Žƒ–‹‰–‘…‡••
‡…–‹‘ͳʹ ‘™‡”–‘ƒ‡”—Ž‡•

4. Similar Provisions

Section Deals with Act

‡…–‹‘ͻ ‡˜›ƒ†‘ŽŽ‡…–‹‘ 

‡…–‹‘ͷ ‡˜›ƒ†‘ŽŽ‡…–‹‘ 

‡…–‹‘͹ ‡˜›ƒ†‘ŽŽ‡…–‹‘‘ˆƒš 

 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 773

INTRODUCTION
†‹ƒ™‡Šƒ˜‡ƒ†‘’–‡††—ƒŽ
‘†‡Ž‹™Š‹…Š–ƒ–‡•ƒ†‹‘
‘˜‡”‡–‹’‘•‡–ƒš•‹—Ž–ƒ‡‘—•Ž›Ǥ ‡†‡”ƒŽ
•–”—…–—”‡‘ˆ–Š‡‘•–‹–—–‹‘‹•ƒŽ•‘”‡–ƒ‹‡†—†‡”–Š‹•‘†‡ŽǤ‘‡•—”‡•‡ƒŽ‡••ϐŽ‘™‘ˆ…”‡†‹––Š”‘—‰Š‘—––Š‡
–‡””‹–‘”›‘ˆ†‹ƒƒŽ‹…–™ƒ•‡…‡••ƒ”›ƒ†Š‡…‡
…–ǡʹͲͳ͹™ƒ•’ƒ••‡†Ǥ‘’‡•ƒ–‹‘–‘•–ƒ–‡•ˆ‘”–Š‡Ž‘••
†—‡–‘‹–”‘†—…–‹‘‘ˆ
‹•’”‘˜‹†‡†–Š”‘—‰Šƒ…–ǡ
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹Ǥ
INTEGRATED GOODS & SERVICES TAX ACT, 2017
Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ȏ
Ȑ™ƒ•’ƒ••‡†„›–Š‡ƒ”Ž‹ƒ‡–ˆ‘”Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ–ƒš
‘‹–‡”Ǧ•–ƒ–‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ†ˆ‘”ƒ––‡”•…‘‡…–‡†–Š‡”‡™‹–Š
‘”‹…‹†‡–ƒŽ–Š‡”‡–‘Ǥ
Š‡‹‘
‘˜‡”‡–’”‡•‡–‡†–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡ƒš‹ŽŽǡʹͲͳ͹‹‘ƒ„Šƒƒ†‹–™ƒ•’ƒ••‡†
„›–Š‡•ƒ‡‘ʹͻ–Šƒ”…ŠǡʹͲͳ͹ǤŠ‡ƒŒ›ƒƒ„Šƒ’ƒ••‡†–Š‡„‹ŽŽ‘͸–Š’”‹ŽǡʹͲͳ͹ƒ†™ƒ•ƒ••‡–‡†–‘„›–Š‡
”‡•‹†‡–‘ͳʹ–Š’”‹ŽǡʹͲͳ͹Ǥ

 ‹• Ž‡˜‹‡† ƒ† …‘ŽŽ‡…–‡† „› –Š‡ ‡–”‡ ‘ ‹–‡”Ǧ•–ƒ–‡ •—’’Ž› ‘ˆ
‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•Ǥ†‡””–‹…Ž‡ʹ͸ͻ‘ˆ–Š‡‘•–‹–—–‹‘ǡ

–‡‰”ƒ–‡†
‘‘†• ƒ† ‡”˜‹…‡ ƒš
‘•—’’Ž‹‡•‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ•–ƒ–‡–”ƒ†‡‘”…‘‡”…‡‹•Ž‡˜‹‡†
ȋ
Ȍ ‡ƒ• –ƒš Ž‡˜‹‡† —†‡” –Š‡
ƒ† …‘ŽŽ‡…–‡† „› –Š‡
‘˜‡”‡– ‘ˆ †‹ƒ ƒ† •—…Š –ƒš •ŠƒŽŽ „‡

 …– ‘ –Š‡ •—’’Ž› ‘ˆ ƒ› ‰‘‘†•
ƒ’’‘”–‹‘‡†„‡–™‡‡–Š‡‹‘ƒ†–Š‡–ƒ–‡•‹–Š‡ƒ‡”ƒ•ƒ›
ƒ†Ȁ‘”•‡”˜‹…‡•‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ
„‡ ’”‘˜‹†‡† „› ƒ”Ž‹ƒ‡– „› Žƒ™ ‘ –Š‡ ”‡…‘‡†ƒ–‹‘• ‘ˆ –Š‡
–ƒ–‡–”ƒ†‡‘”…‘‡”…‡Ǥ

‘‘†•ƒ†‡”˜‹…‡•ƒš‘—…‹ŽǤ
’ƒ‹†‹•ƒ˜ƒ‹Žƒ„Ž‡ƒ•…”‡†‹––‘•‡–
‘ˆˆƒ‰ƒ‹•––Š‡’ƒ›‡–‘ˆ
ǡ
ƒ†
‘‘—–’—–•—’’Ž‹‡•Ǥ
Š‡
‡…Šƒ‹•‡•—”‡•–Šƒ––Š‡–ƒš‘‡›‰‘‡•–‘–Š‡•–ƒ–‡™Š‡”‡…‘•—’–‹‘–ƒ‡•’Žƒ…‡Ǥ
…ƒ„‡
˜‹‡™‡†ƒ•ƒ•ƒ”–Ǧƒ……‘—–‹‰‡…Šƒ‹••‡”˜‹‰ƒ…Ž‡ƒ”‹‰Š‘—•‡ˆ—…–‹‘‹‹–‡”Ǧ•–ƒ–‡•—’’Ž‹‡•–‘‡•—”‡–Šƒ–
–Š‡–ƒš‘‡›‰‘‡•–‘–Š‡…‘””‡…–•–ƒ–‡Ǥ

ȋ–‡‰”ƒ–‡†
‘‘†•Ƭ‡”˜‹…‡•ƒšȌ…–ǡʹͲͳ͹†‡ƒŽ•™‹–Š•—’’Ž‹‡•‹–‡”•–ƒ–‡ǡ‹’‘”–‹–‘†‹ƒƒ†•—’’Ž‹‡•
ƒ†‡‘—–•‹†‡†‹ƒǤŠ‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡‹ŽŽ—•–”ƒ–‡•–Š‡•ƒ‡Ǥ

SUPPLY TAX / TAXES

‹–”ƒǦ–ƒ–‡ 
Ϊ

‹–”ƒǦ‹‘‡””‹–‘”› 
Ϊ

‹–‡”Ǧ–ƒ–‡Ȁ‹’‘”–Ȁ 


‹•ƒ’’Ž‹…ƒ„Ž‡ƒŽŽ‘˜‡”†‹ƒ‹…Ž—†‹‰–Š‡•–ƒ–‡‘ˆ ƒ—Ƭƒ•Š‹”Ǥ
•’‡”•‡…–‹‘ͷ‘ˆ
…–ǡʹͲͳ͹ƒƒš‹—”ƒ–‡‘ˆͶͲ؏ƒ›„‡‹’‘•‡†‘‹–‡”•–ƒ–‡•—’’Ž›‘ˆ‰‘‘†•ƒ†Ȁ‘”
•‡”˜‹…‡•Ǥ
Dz—ƒŽ
dz‘†‡ŽŠƒ•„‡‡ƒ†‘’–‡†‹˜‹‡™‘ˆ–Š‡ˆ‡†‡”ƒŽ•–”—…–—”‡‘ˆ‘—”…‘—–”›Ǥ‡–”‡ƒ†–ƒ–‡•‡‘—•Ž›Ž‡˜›

‘‡˜‡”›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™Š‹…Šǡ–ƒ‡•’Žƒ…‡™‹–Š‹ƒ–ƒ–‡‘”‹‘‡””‹–‘”›ǤŠ—•ǡ–Š‡”‡
ƒ”‡–™‘…‘’‘‡–•‘ˆ
ǣ

‡˜‹‡†Ƭ…‘ŽŽ‡…–‡†
‡–”ƒŽ–ƒšȋ
Ȍ —†‡”–Š‡ƒ—–Š‘”‹–›‘ˆ

…–ǡʹͲͳ͹
Two
Components of
GST

–ƒ–‡–ƒšȋ
Ȍ
 774 Lesson 16 Ȉ EP-TL

Relevance of IGST
‡ˆ‘”‡†‹•…—••‹‰–Š‡
‘†‡Žƒ†‹–•ˆ‡ƒ–—”‡•ǡ‹–‹•‹’‘”–ƒ––‘—†‡”•–ƒ†Š‘™‹–‡”•–ƒ–‡–”ƒ†‡‘”…‘‡”…‡
‹•„‡‹‰”‡‰—Žƒ–‡†‹–Š‡’”‡•‡–‹†‹”‡…––ƒš•›•–‡Ǥ–‹••‹‰‹ϐ‹…ƒ––‘‘–‡–Šƒ–‡ƒ”Ž‹‡”–Š‡‡–”ƒŽƒŽ‡•ƒš…–ǡ
ͳͻͷ͸”‡‰—Žƒ–‡†–Š‡‹–‡”Ǧ•–ƒ–‡–”ƒ†‡‘”…‘‡”…‡ȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘ƒ•DzdzȌǡ–Š‡ƒ—–Š‘”‹–›ˆ‘”™Š‹…Š™ƒ•
…‘•–‹–—–‹‘ƒŽŽ›†‡”‹˜‡†ˆ”‘”–‹…Ž‡ʹ͸ͻ‘ˆ–Š‡‘•–‹–—–‹‘Ǥ —”–Š‡”ǡƒ•’‡””–‹…Ž‡ʹͺ͸‘ˆ–Š‡‘•–‹–—–‹‘‘ˆ†‹ƒǡ
‘–ƒ–‡…‘—Ž†Ž‡˜›•ƒŽ‡•–ƒš‘ƒ›•ƒŽ‡•‘”’—”…Šƒ•‡‘ˆ‰‘‘†•–Šƒ––‘‘’Žƒ…‡‘—–•‹†‡–Š‡–ƒ–‡‘”‹–Š‡…‘—”•‡‘ˆ
–Š‡‹’‘”–‘ˆ–Š‡‰‘‘†•‹–‘ǡ‘”‡š’‘”–‘ˆ–Š‡‰‘‘†•‘—–‘ˆ–Š‡–‡””‹–‘”›‘ˆ†‹ƒǤŽ›–Š‡ƒ”Ž‹ƒ‡–…‘—Ž†Ž‡˜›–ƒš
‘•—…Šƒ–”ƒ•ƒ…–‹‘Ǥ
Š‡‡–”ƒŽƒŽ‡•ƒš…–™ƒ•‡ƒ…–‡†‹ͳͻͷ͸–‘ˆ‘”—Žƒ–‡’”‹…‹’Ž‡•ˆ‘”†‡–‡”‹‹‰™Š‡ƒ•ƒŽ‡‘”’—”…Šƒ•‡‘ˆ
‰‘‘†•–ƒ‡•’Žƒ…‡‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ•–ƒ–‡–”ƒ†‡‘”…‘‡”…‡ǤŠ‡…–ƒŽ•‘’”‘˜‹†‡†ˆ‘”–Š‡Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘
‘ˆ–ƒš‡•‘•ƒŽ‡•‘ˆ‰‘‘†•‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡–”ƒ†‡Ǥ‘™‡˜‡”ǡ™ƒ•…‘ŽŽ‡…–‡†ƒ†”‡–ƒ‹‡†„›–Š‡‘”‹‰‹
–ƒ–‡ǡ™Š‹…Š™ƒ•ƒƒ„‡””ƒ–‹‘Ǥ›‹†‹”‡…––ƒšǡ„›†‡ϐ‹‹–‹‘ǡ‹•ƒ…‘•—’–‹‘–ƒšǡ–Š‡‹…‹†‡…‡‘ˆ™Š‹…Šǡ‹•„‘”‡
„›–Š‡…‘•—‡”Ǥ‘‰‹…ƒŽŽ›ǡ–Š‡–ƒš—•–ƒ……”—‡–‘–Š‡†‡•–‹ƒ–‹‘–ƒ–‡Šƒ˜‹‰Œ—”‹•†‹…–‹‘‘˜‡”–Š‡…‘•—‡”Ǥ
’—–ƒš”‡†‹–ȋȌ‘ˆ™ƒ•‘–ƒŽŽ‘™‡†–‘–Š‡„—›‡”™Š‹…Šǡ”‡•—Ž–‡†‹…ƒ•…ƒ†‹‰‘ˆ–ƒšȋ–ƒš‘–ƒšȌ‹–Š‡
•—’’Ž›…Šƒ‹Ǥ
‘”‡‘˜‡”ǡ˜ƒ”‹‘—•ƒ……‘—–‹‰ˆ‘”•™‡”‡”‡“—‹”‡†–‘„‡ϐ‹Ž‡†‹˜‹œǤǡ ‘”ǡͳǡʹǡ ǡǡ  ‘”•‡–…Ǥ™Š‹…Š
ƒ††‡†–‘–Š‡…‘’Ž‹ƒ…‡…‘•–‘ˆ–Š‡„—•‹‡••ƒ†‹’‡†‡†–Š‡ˆ”‡‡ϐŽ‘™‘ˆ–”ƒ†‡Ǥ
Š‡
‘†‡Ž™ƒ•„”‘—‰Š–‹–‘”‡‘˜‡ƒŽŽ•—…Š†‡ϐ‹…‹‡…‹‡•Ǥ
‹•ƒ‡…Šƒ‹•–‘‘‹–‘”–Š‡‹–‡”Ǧ–ƒ–‡
–”ƒ†‡‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ†‡•—”‡–Šƒ––Š‡
…‘’‘‡–ƒ……”—‡•–‘–Š‡…‘•—‡”–ƒ–‡Ǥ–ƒ‹–ƒ‹•–Š‡
‹–‡‰”‹–›‘ˆ…Šƒ‹‹‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•ǤŠ‡
”ƒ–‡‹•„”‘ƒ†Ž›‡“—ƒŽ–‘
”ƒ–‡’Ž—•
”ƒ–‡Ǥ
™‘—Ž†
„‡Ž‡˜‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘ƒŽŽ‹–‡”Ǧ–ƒ–‡–”ƒ•ƒ…–‹‘•‘ˆ–ƒšƒ„Ž‡‰‘‘†•‘”•‡”˜‹…‡•Ǥ

”ƒ–‡α
”ƒ–‡Ϊ
”ƒ–‡
Cross-utilisation of credit ”‡“—‹”‡•–Š‡–”ƒ•ˆ‡”‘ˆˆ—†•„‡–™‡‡”‡•’‡…–‹˜‡ƒ……‘—–•ǤŠ‡—–‹Ž‹•ƒ–‹‘‘ˆ…”‡†‹–‘ˆ

Ƭ
ˆ‘”’ƒ›‡–‘ˆ
™‘—Ž†”‡“—‹”‡–Š‡–”ƒ•ˆ‡”‘ˆˆ—†•–‘
ƒ……‘—–•Ǥ‹‹Žƒ”Ž›ǡ–Š‡—–‹Ž‹•ƒ–‹‘‘ˆ

…”‡†‹–ˆ‘”’ƒ›‡–‘ˆ
Ƭ
™‘—Ž†‡…‡••‹–ƒ–‡–Š‡–”ƒ•ˆ‡”‘ˆˆ—†•ˆ”‘
ƒ……‘—–Ǥ
Š‡
’ƒ›‡–…ƒ„‡†‘‡„›—–‹Ž‹•‹‰–Š‡ǤŠ‡ƒ‘—–‘ˆ‘ƒ……‘—–‘ˆ
‹•ƒŽŽ‘™‡†–‘„‡—–‹Ž‹•‡†
–‘™ƒ”†•–Š‡’ƒ›‡–‘ˆ
ǡ
ƒ†
Ȁ
Ǥ
–‹•˜‡”›‹’‘”–ƒ––‘†‡–‡”‹‡–Š‡ƒ–—”‡‘ˆ•—’’Ž›Ȃ™Š‡–Š‡”‹–‹•‹–‡”Ǧ–ƒ–‡‘”‹–”ƒǦ–ƒ–‡ǡƒ•–Š‡‹†‘ˆ–ƒš–‘
„‡’ƒ‹†ȋ
‘”
Ϊ
Ȍ†‡’‡†•‘–Šƒ–Ǥ
(i) Inter-State Supply
 —„Œ‡…––‘–Š‡’Žƒ…‡‘ˆ•—’’Ž›’”‘˜‹•‹‘•ǡ™Š‡”‡–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡•—’’Ž‹‡”ƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›ƒ”‡‹ǣ
ȋƒȌ ™‘†‹ˆˆ‡”‡––ƒ–‡•Ǣ
ȋ„Ȍ ™‘†‹ˆˆ‡”‡–‹‘‡””‹–‘”‹‡•Ǣ‘”
ȋ…Ȍ –ƒ–‡ƒ†ƒ‹‘‡””‹–‘”›ǡ•—…Š•—’’Ž‹‡••ŠƒŽŽ„‡–”‡ƒ–‡†ƒ•–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹–Š‡
…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡–”ƒ†‡‘”…‘‡”…‡Ǥ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›ǡ‘–
„‡‹‰ƒ‹–”ƒǦ–ƒ–‡•—’’Ž›ǡ•ŠƒŽŽ„‡†‡‡‡†–‘„‡ƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ
–ƒ–‡–”ƒ†‡‘”…‘‡”…‡Ǥ
 Ž•‘ǡ•—’’Ž‹‡•–‘‘”„›’‡…‹ƒŽ…‘‘‹…‘‡•ȋ•Ȍƒ”‡†‡ϐ‹‡†ƒ•‹–‡”Ǧ–ƒ–‡•—’’Ž›Ǥ —”–Š‡”ǡ–Š‡
•—’’Ž›‘ˆ‰‘‘†•‹’‘”–‡†‹–‘–Š‡–‡””‹–‘”›‘ˆ†‹ƒ–‹ŽŽ–Š‡›…”‘••–Š‡…—•–‘•ˆ”‘–‹‡”•‘ˆ†‹ƒ‘”–Š‡
•—’’Ž› ‘ˆ •‡”˜‹…‡• ‹’‘”–‡† ‹–‘ –Š‡ –‡””‹–‘”› ‘ˆ †‹ƒ •ŠƒŽŽ „‡ –”‡ƒ–‡† ƒ• •—’’Ž‹‡• ‹ –Š‡ …‘—”•‡ ‘ˆ
‹–‡”Ǧ–ƒ–‡–”ƒ†‡‘”…‘‡”…‡ǤŽ•‘ǡ–Š‡•—’’Ž‹‡•–‘‹–‡”ƒ–‹‘ƒŽ–‘—”‹•–•ƒ”‡–‘„‡–”‡ƒ–‡†ƒ•‹–‡”Ǧ
–ƒ–‡•—’’Ž‹‡•Ǥ
Inter-State supply :
—’’Ž›‘ˆ‰‘‘†•ˆ”‘‘‡–ƒ–‡‘”‹‘‡””‹–‘”›–‘ƒ‘–Š‡”–ƒ–‡‘”‹‘‡””‹–‘”›
Ȉ —’’Ž›‘ˆ•‡”˜‹…‡•ˆ”‘‘‡–ƒ–‡‘”‹‘‡””‹–‘”›–‘ƒ‘–Š‡”–ƒ–‡‘”‹‘‡””‹–‘”›
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 775

Ȉ ’‘”–‘ˆ‰‘‘†•–‹ŽŽ–Š‡›–Š‡…”‘••…—•–‘•ˆ”‘–‹‡”
Ȉ ’‘”–‘ˆ•‡”˜‹…‡•
Ȉ š’‘”–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•
Ȉ —’’Ž›‘ˆ‰‘‘†•Ȁ•‡”˜‹…‡•–‘Ȁ„›
Ȉ —’’Ž‹‡•–‘‹–‡”ƒ–‹‘ƒŽ–‘—”‹•–•
Ȉ ›‘–Š‡”•—’’Ž›‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›™Š‹…Š‹•‘–‹–”ƒǦ–ƒ–‡•—’’Ž›Ǥ
 Š—•ǡ–Š‡ƒ–—”‡‘ˆ–Š‡•—’’Ž›†‡’‡†•‘–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡•—’’Ž‹‡”ƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›Ǥ
(ii) Intra-State supplyǣ–Šƒ•„‡‡†‡ϐ‹‡†ƒ•ƒ›•—’’Ž›™Š‡”‡–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡•—’’Ž‹‡”ƒ†–Š‡’Žƒ…‡‘ˆ
•—’’Ž›ƒ”‡‹–Š‡•ƒ‡–ƒ–‡‘”‹‘‡””‹–‘”›Ǥ

’‘”–ƒ–‡ϐ‹‹–‹‘•
‡…–‹‘ʹ‘ˆ–Š‡
…–ǡʹͲͳ͹…‘–ƒ‹•–Š‡†‡ϐ‹‹–‹‘•‘ˆ˜ƒ”‹‘—•–‡”•—•‡†ƒ–•‡˜‡”ƒŽ’Žƒ…‡•‹–Š‡…–Ǥ‘‡‘ˆ
–Š‡‹’‘”–ƒ–†‡ϐ‹‹–‹‘•ƒ”‡”‡’”‘†—…‡†ƒ•ˆ‘ŽŽ‘™•ǣ
Section 2(3) ǣDz…‘–‹—‘—•Œ‘—”‡›dz‡ƒ•ƒŒ‘—”‡›ˆ‘”™Š‹…Šƒ•‹‰Ž‡‘”‘”‡–Šƒ‘‡–‹…‡–‘”‹˜‘‹…‡‹•‹••—‡†
ƒ– –Š‡ •ƒ‡ –‹‡ǡ ‡‹–Š‡” „› ƒ •‹‰Ž‡ •—’’Ž‹‡” ‘ˆ •‡”˜‹…‡ ‘” –Š”‘—‰Š ƒ ƒ‰‡– ƒ…–‹‰ ‘ „‡ŠƒŽˆ ‘ˆ ‘”‡ –Šƒ ‘‡
•—’’Ž‹‡”‘ˆ•‡”˜‹…‡ǡƒ†™Š‹…Š‹˜‘Ž˜‡•‘•–‘’‘˜‡”„‡–™‡‡ƒ›‘ˆ–Š‡Ž‡‰•‘ˆ–Š‡Œ‘—”‡›ˆ‘”™Š‹…Š‘‡‘”‘”‡
•‡’ƒ”ƒ–‡–‹…‡–•‘”‹˜‘‹…‡•ƒ”‡‹••—‡†Ǥ
Explanation Ȃ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Žƒ—•‡ǡ–Š‡–‡”Dz•–‘’‘˜‡”dz‡ƒ•ƒ’Žƒ…‡™Š‡”‡ƒ’ƒ••‡‰‡”…ƒ†‹•‡„ƒ”
‡‹–Š‡”–‘–”ƒ•ˆ‡”–‘ƒ‘–Š‡”…‘˜‡›ƒ…‡‘”„”‡ƒŠ‹•Œ‘—”‡›ˆ‘”ƒ…‡”–ƒ‹’‡”‹‘†‹‘”†‡”–‘”‡•—‡‹–ƒ–ƒŽƒ–‡”
’‘‹–‘ˆ–‹‡Ǥ
 776 Lesson 16 Ȉ EP-TL

Section 2(5) ǣDz‡š’‘”–‘ˆ‰‘‘†•dz™‹–Š‹–•‰”ƒƒ–‹…ƒŽ˜ƒ”‹ƒ–‹‘•ƒ†…‘‰ƒ–‡‡š’”‡••‹‘•ǡ‡ƒ•–ƒ‹‰‰‘‘†•‘—–

‘ˆ†‹ƒ–‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒǤ
Section 2(6) ǣDz‡š’‘”–‘ˆ•‡”˜‹…‡•dz‡ƒ•–Š‡•—’’Ž›‘ˆƒ›•‡”˜‹…‡™Š‡ǡȂ
ȋ‹Ȍ –Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡‹•Ž‘…ƒ–‡†‹†‹ƒǢ
ȋ‹‹Ȍ –Š‡”‡…‹’‹‡–‘ˆ•‡”˜‹…‡‹•Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒǢ
ȋ‹‹‹Ȍ –Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡‹•‘—–•‹†‡†‹ƒǢ
ȋ‹˜Ȍ –Š‡’ƒ›‡–ˆ‘”•—…Š•‡”˜‹…‡Šƒ•„‡‡”‡…‡‹˜‡†„›–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡‹…‘˜‡”–‹„Ž‡ˆ‘”‡‹‰‡š…Šƒ‰‡‘”
‹†‹ƒ”—’‡‡•™Š‡”‡˜‡”’‡”‹––‡†„›–Š‡‡•‡”˜‡ƒ‘ˆ†‹ƒǢƒ†
ȋ˜Ȍ –Š‡ •—’’Ž‹‡” ‘ˆ •‡”˜‹…‡ ƒ† –Š‡ ”‡…‹’‹‡– ‘ˆ •‡”˜‹…‡ ƒ”‡ ‘– ‡”‡Ž› ‡•–ƒ„Ž‹•Š‡–• ‘ˆ ƒ †‹•–‹…– ’‡”•‘ ‹
ƒ……‘”†ƒ…‡™‹–Šš’Žƒƒ–‹‘ͳ‹•‡…–‹‘ͺǤ
Section 2(7) ǣ Dzϐ‹š‡† ‡•–ƒ„Ž‹•Š‡–dz ‡ƒ• ƒ ’Žƒ…‡ ȋ‘–Š‡” –Šƒ –Š‡ ”‡‰‹•–‡”‡† ’Žƒ…‡ ‘ˆ „—•‹‡••Ȍ ™Š‹…Š ‹•
…Šƒ”ƒ…–‡”‹•‡†„›ƒ•—ˆϐ‹…‹‡–†‡‰”‡‡‘ˆ’‡”ƒ‡…‡ƒ†•—‹–ƒ„Ž‡•–”—…–—”‡‹–‡”•‘ˆŠ—ƒƒ†–‡…Š‹…ƒŽ”‡•‘—”…‡•
–‘•—’’Ž›•‡”˜‹…‡•‘”–‘”‡…‡‹˜‡ƒ†—•‡•‡”˜‹…‡•ˆ‘”‹–•‘™‡‡†•Ǥ
Section 2(10) ǣǮǮ‹’‘”–‘ˆ‰‘‘†•dz™‹–Š‹–•‰”ƒƒ–‹…ƒŽ˜ƒ”‹ƒ–‹‘•ƒ†…‘‰ƒ–‡‡š’”‡••‹‘•ǡ‡ƒ•„”‹‰‹‰‰‘‘†•
‹–‘†‹ƒˆ”‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒǤ
Section 2(11) ǣǮǮ‹’‘”–‘ˆ•‡”˜‹…‡•dz‡ƒ•–Š‡•—’’Ž›‘ˆƒ›•‡”˜‹…‡ǡ™Š‡”‡Ȃ
ȋ‹Ȍ –Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡‹•Ž‘…ƒ–‡†‘—–•‹†‡†‹ƒǢ
ȋ‹‹Ȍ –Š‡”‡…‹’‹‡–‘ˆ•‡”˜‹…‡‹•Ž‘…ƒ–‡†‹†‹ƒǢƒ†
ȋ‹‹‹Ȍ –Š‡’Žƒ…‡‘ˆ•—’’Ž›‘ˆ•‡”˜‹…‡‹•‹†‹ƒǤ
Section 2(14) ǣDzŽ‘…ƒ–‹‘‘ˆ–Š‡”‡…‹’‹‡–‘ˆ•‡”˜‹…‡•dz‡ƒ•ǡ
ȋƒȌ ™Š‡”‡ƒ•—’’Ž›‹•”‡…‡‹˜‡†ƒ–ƒ’Žƒ…‡‘ˆ„—•‹‡••ˆ‘”™Š‹…Š–Š‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‘„–ƒ‹‡†ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ
•—…Š’Žƒ…‡‘ˆ„—•‹‡••Ǣ
ȋ„Ȍ ™Š‡”‡ƒ•—’’Ž›‹•”‡…‡‹˜‡†ƒ–ƒ’Žƒ…‡‘–Š‡”–Šƒ–Š‡’Žƒ…‡‘ˆ„—•‹‡••ˆ‘”™Š‹…Š”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‘„–ƒ‹‡†
ȋƒϐ‹š‡†‡•–ƒ„Ž‹•Š‡–‡Ž•‡™Š‡”‡Ȍǡ–Š‡Ž‘…ƒ–‹‘‘ˆ•—…Šϐ‹š‡†‡•–ƒ„Ž‹•Š‡–Ǣ
ȋ…Ȍ ™Š‡”‡ ƒ •—’’Ž› ‹• ”‡…‡‹˜‡† ƒ– ‘”‡ –Šƒ ‘‡ ‡•–ƒ„Ž‹•Š‡–ǡ ™Š‡–Š‡” –Š‡ ’Žƒ…‡ ‘ˆ „—•‹‡•• ‘” ϐ‹š‡†
‡•–ƒ„Ž‹•Š‡–ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡‡•–ƒ„Ž‹•Š‡–‘•–†‹”‡…–Ž›…‘…‡”‡†™‹–Š–Š‡”‡…‡‹’–‘ˆ–Š‡•—’’Ž›Ǣƒ†
ȋ†Ȍ ‹ƒ„•‡…‡‘ˆ•—…Š’Žƒ…‡•ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡—•—ƒŽ’Žƒ…‡‘ˆ”‡•‹†‡…‡‘ˆ–Š‡”‡…‹’‹‡–Ǥ
Section 2(15): DzŽ‘…ƒ–‹‘‘ˆ–Š‡•—’’Ž‹‡”‘ˆ•‡”˜‹…‡•dz‡ƒ•ǡȂ
ȋƒȌ ™Š‡”‡ƒ•—’’Ž›‹•ƒ†‡ˆ”‘ƒ’Žƒ…‡‘ˆ„—•‹‡••ˆ‘”™Š‹…Š–Š‡”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‘„–ƒ‹‡†ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ
•—…Š’Žƒ…‡‘ˆ„—•‹‡••Ǣ
ȋ„Ȍ ™Š‡”‡ƒ•—’’Ž›‹•ƒ†‡ˆ”‘ƒ’Žƒ…‡‘–Š‡”–Šƒ–Š‡’Žƒ…‡‘ˆ„—•‹‡••ˆ‘”™Š‹…Š”‡‰‹•–”ƒ–‹‘Šƒ•„‡‡‘„–ƒ‹‡†
ȋƒϐ‹š‡†‡•–ƒ„Ž‹•Š‡–‡Ž•‡™Š‡”‡Ȍǡ–Š‡Ž‘…ƒ–‹‘‘ˆ•—…Šϐ‹š‡†‡•–ƒ„Ž‹•Š‡–Ǣ
ȋ…Ȍ ™Š‡”‡ ƒ •—’’Ž› ‹• ƒ†‡ ˆ”‘ ‘”‡ –Šƒ ‘‡ ‡•–ƒ„Ž‹•Š‡–ǡ ™Š‡–Š‡” –Š‡ ’Žƒ…‡ ‘ˆ „—•‹‡•• ‘” ϐ‹š‡†
‡•–ƒ„Ž‹•Š‡–ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡‡•–ƒ„Ž‹•Š‡–‘•–†‹”‡…–Ž›…‘…‡”‡†™‹–Š–Š‡’”‘˜‹•‹‘‘ˆ–Š‡•—’’Ž›Ǣƒ†
ȋ†Ȍ ‹ƒ„•‡…‡‘ˆ•—…Š’Žƒ…‡•ǡ–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡—•—ƒŽ’Žƒ…‡‘ˆ”‡•‹†‡…‡‘ˆ–Š‡•—’’Ž‹‡”Ǥ
Section 2(16) ǣDz‘Ǧ–ƒšƒ„Ž‡‘Ž‹‡”‡…‹’‹‡–dz‡ƒ•ƒ›
‘˜‡”‡–ǡŽ‘…ƒŽƒ—–Š‘”‹–›ǡ‰‘˜‡”‡–ƒŽƒ—–Š‘”‹–›ǡƒ
‹†‹˜‹†—ƒŽ‘”ƒ›‘–Š‡”’‡”•‘‘–”‡‰‹•–‡”‡†ƒ†”‡…‡‹˜‹‰‘Ž‹‡‹ˆ‘”ƒ–‹‘ƒ††ƒ–ƒ„ƒ•‡ƒ……‡••‘””‡–”‹‡˜ƒŽ
•‡”˜‹…‡•‹”‡Žƒ–‹‘–‘ƒ›’—”’‘•‡‘–Š‡”–Šƒ…‘‡”…‡ǡ‹†—•–”›‘”ƒ›‘–Š‡”„—•‹‡••‘”’”‘ˆ‡••‹‘ǡŽ‘…ƒ–‡†‹
–ƒšƒ„Ž‡–‡””‹–‘”›Ǥ
ExplanationǤȂ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹•…Žƒ—•‡ǡ–Š‡‡š’”‡••‹‘Dz‰‘˜‡”‡–ƒŽƒ—–Š‘”‹–›dz‡ƒ•ƒƒ—–Š‘”‹–›‘”ƒ
„‘ƒ”†‘”ƒ›‘–Š‡”„‘†›ǡȂ
ȋ‹Ȍ •‡–—’„›ƒ…–‘ˆƒ”Ž‹ƒ‡–‘”ƒ–ƒ–‡‡‰‹•Žƒ–—”‡Ǣ‘”
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 777

ȋ‹‹Ȍ ‡•–ƒ„Ž‹•Š‡†„›ƒ›
‘˜‡”‡–ǡ™‹–Š‹‡–›’‡”…‡–Ǥ‘”‘”‡’ƒ”–‹…‹’ƒ–‹‘„›™ƒ›‘ˆ‡“—‹–›‘”…‘–”‘Žǡ–‘
…ƒ””›‘—–ƒ›ˆ—…–‹‘‡–”—•–‡†–‘ƒƒ…Šƒ›ƒ–—†‡”ƒ”–‹…Ž‡ʹͶ͵
‘”–‘ƒ—‹…‹’ƒŽ‹–›—†‡”ƒ”–‹…Ž‡ʹͶ͵
‘ˆ–Š‡‘•–‹–—–‹‘Ǥ
Section 2(19) ǣDz’‡…‹ƒŽ…‘‘‹…‘‡dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ•ƒ••‹‰‡†–‘‹–‹…Žƒ—•‡ȋœƒȌ‘ˆ•‡…–‹‘ʹ‘ˆ
–Š‡’‡…‹ƒŽ…‘‘‹…‘‡•…–ǡʹͲͲͷǤ
Section 2(20) ǣ Dz’‡…‹ƒŽ …‘‘‹… ‘‡ †‡˜‡Ž‘’‡”dz •ŠƒŽŽ Šƒ˜‡ –Š‡ •ƒ‡ ‡ƒ‹‰ ƒ• ƒ••‹‰‡† –‘ ‹– ‹ …Žƒ—•‡ ‘ˆ
•‡…–‹‘ʹ‘ˆ–Š‡’‡…‹ƒŽ…‘‘‹…‘‡•…–ǡʹͲͲͷƒ†‹…Ž—†‡•ƒ—–Š‘”‹–›ƒ•†‡ϐ‹‡†‹…Žƒ—•‡ȋ†Ȍƒ†ƒ‘Ǧ
‡˜‡Ž‘’‡”ƒ•†‡ϐ‹‡†‹…Žƒ—•‡ȋˆȌ‘ˆ•‡…–‹‘ʹ‘ˆ–Š‡•ƒ‹†…–Ǥ
Section 2(21) ǣDz•—’’Ž›dz•ŠƒŽŽŠƒ˜‡–Š‡•ƒ‡‡ƒ‹‰ƒ•ƒ••‹‰‡†–‘‹–‹•‡…–‹‘͹‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•
ƒš…–Ǥ
Section 2(22) ǣDz–ƒšƒ„Ž‡–‡””‹–‘”›dz‡ƒ•–Š‡–‡””‹–‘”›–‘™Š‹…Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–ƒ’’Ž›Ǥ
Levy and Collection under IGST, ACT 2017 [Section 5]
ȋͳȌ —„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋʹȌǡ–Š‡”‡•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ–ƒš…ƒŽŽ‡†–Š‡‹–‡‰”ƒ–‡†‰‘‘†•ƒ†•‡”˜‹…‡•
–ƒš‘ƒŽŽ‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‡š…‡’–‘–Š‡•—’’Ž›‘ˆƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ
…‘•—’–‹‘ǡ‘–Š‡˜ƒŽ—‡†‡–‡”‹‡†—†‡”•‡…–‹‘ͳͷ‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ƒ†ƒ–
•—…Š”ƒ–‡•ǡ‘–‡š…‡‡†‹‰ˆ‘”–›’‡”…‡–Ǥǡƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ
–Š‡‘—…‹Žƒ†…‘ŽŽ‡…–‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†ƒ†•ŠƒŽŽ„‡’ƒ‹†„›–Š‡–ƒšƒ„Ž‡’‡”•‘Ǥ
 ”‘˜‹†‡†–Šƒ––Š‡‹–‡‰”ƒ–‡†–ƒš‘‰‘‘†•‹’‘”–‡†‹–‘†‹ƒ•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘͵‘ˆ–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷ‘–Š‡˜ƒŽ—‡ƒ•†‡–‡”‹‡†—†‡”–Š‡•ƒ‹†…–ƒ–
–Š‡’‘‹–™Š‡†—–‹‡•‘ˆ…—•–‘•ƒ”‡Ž‡˜‹‡†‘–Š‡•ƒ‹†‰‘‘†•—†‡”•‡…–‹‘ͳʹ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹȋͷʹ
‘ˆͳͻ͸ʹȌǤ
ȋʹȌ Š‡‹–‡‰”ƒ–‡†–ƒš‘–Š‡•—’’Ž›‘ˆ’‡–”‘Ž‡—…”—†‡ǡŠ‹‰Š•’‡‡††‹‡•‡Žǡ‘–‘”•’‹”‹–ȋ…‘‘Ž›‘™ƒ•
’‡–”‘ŽȌǡƒ–—”ƒŽ‰ƒ•ƒ†ƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡Ž•ŠƒŽŽ„‡Ž‡˜‹‡†™‹–Š‡ˆˆ‡…–ˆ”‘•—…Š†ƒ–‡ƒ•ƒ›„‡‘–‹ϐ‹‡†„›
–Š‡
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹ŽǤ
ȋ͵Ȍ Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›…ƒ–‡‰‘”‹‡•‘ˆ•—’’Ž›‘ˆ
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ–Š‡–ƒš‘™Š‹…Š•ŠƒŽŽ„‡’ƒ‹†‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•„›–Š‡”‡…‹’‹‡–‘ˆ•—…Š
‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘•—…Š”‡…‹’‹‡–ƒ•‹ˆŠ‡‹•–Š‡’‡”•‘
Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰–Š‡–ƒš‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ
ȋͶȌ Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›ƒ…Žƒ••‘ˆ”‡‰‹•–‡”‡†
’‡”•‘•™Š‘•ŠƒŽŽǡ‹”‡•’‡…–‘ˆ•—’’Ž›‘ˆ•’‡…‹ϐ‹‡†…ƒ–‡‰‘”‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š”‡…‡‹˜‡†ˆ”‘ƒ
—”‡‰‹•–‡”‡†•—’’Ž‹‡”ǡ’ƒ›–Š‡–ƒš‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•ƒ•–Š‡”‡…‹’‹‡–‘ˆ•—…Š•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•
‘”„‘–Šǡƒ†ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘•—…Š”‡…‹’‹‡–ƒ•‹ˆŠ‡‹•–Š‡’‡”•‘Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰
–Š‡–ƒš‹”‡Žƒ–‹‘–‘•—…Š•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ
ȋͷȌ Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›…ƒ–‡‰‘”‹‡•‘ˆ•‡”˜‹…‡•ǡ
–Š‡–ƒš‘‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ™Š‹…Š•ŠƒŽŽ„‡’ƒ‹†„›–Š‡‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”‹ˆ•—…Š•‡”˜‹…‡•ƒ”‡
•—’’Ž‹‡†–Š”‘—‰Š‹–ǡƒ†ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘•—…Š‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”ƒ•‹ˆ
Š‡‹•–Š‡•—’’Ž‹‡”Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰–Š‡–ƒš‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”†‘‡•‘–Šƒ˜‡ƒ’Š›•‹…ƒŽ’”‡•‡…‡‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›ǡ
ƒ›’‡”•‘”‡’”‡•‡–‹‰•—…Š‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”ˆ‘”ƒ›’—”’‘•‡‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›•ŠƒŽŽ„‡Ž‹ƒ„Ž‡
–‘’ƒ›–ƒšǤ
”‘˜‹†‡† ˆ—”–Š‡” –Šƒ– ™Š‡”‡ ƒ ‡Ž‡…–”‘‹… …‘‡”…‡ ‘’‡”ƒ–‘” †‘‡• ‘– Šƒ˜‡ ƒ ’Š›•‹…ƒŽ ’”‡•‡…‡ ‹ –Š‡ –ƒšƒ„Ž‡
–‡””‹–‘”› ƒ† ƒŽ•‘ †‘‡• ‘– Šƒ˜‡ ƒ ”‡’”‡•‡–ƒ–‹˜‡ ‹ –Š‡ •ƒ‹† –‡””‹–‘”›ǡ •—…Š ‡Ž‡…–”‘‹… …‘‡”…‡ ‘’‡”ƒ–‘” •ŠƒŽŽ
ƒ’’‘‹–ƒ’‡”•‘‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›ˆ‘”–Š‡’—”’‘•‡‘ˆ’ƒ›‹‰–ƒšƒ†•—…Š’‡”•‘•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘’ƒ›–ƒšǤ
”‘˜‹•‹‘•ˆ‘”Ž‡˜›ƒ”‡•‹‹Žƒ”ˆ‘”„‘–Š—†‡”
Ƭ
…–Ǥ‡…–‹‘ͳͷ‘ˆ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•…–ǡʹͲͳ͹‹•
…‘‘–‘„‘–Š–Š‡…Šƒ”‰‡•ˆ‘”˜ƒŽ—ƒ–‹‘Ǥ
‹•ˆ‘”‹–”ƒ•–ƒ–‡•—’’Ž›ƒ†
ˆ‘”‹–‡”•–ƒ–‡•—’’Ž›Ǥ
 778 Lesson 16 Ȉ EP-TL

CGST rate is 20% maximum ™Š‡”‡ƒ•under IGST it is 40%ǡ„‡…ƒ—•‡

‹•ƒ…‘„‹‡†–ƒš‘ˆ
Ϊ
ǤŠ‡
ˆ‘ŽŽ‘™‹‰ƒ›„‡‘–‡†ǣ
ȋͳȌ 
‹•‹’‘•‡†‘‹–‡”•–ƒ–‡•—’’Ž›
ȋʹȌ ƒŽ—‡‹•ƒ•†‡–‡”‹‡†—†‡”‡…–‹‘ͳͷ‘ˆ
…–ǡʹͲͳ͹
ȋ͵Ȍ Ž…‘Š‘Žˆ‘”Š—ƒ…‘•—’–‹‘‹•‘—–‘ˆ’—”˜‹‡™‘ˆ

ȋͶȌ Š‡ƒš‹—”ƒ–‡‘ˆŽ‡˜›—†‡”
‹•ͶͲΨ
ȋͷȌ –‡”•–ƒ–‡•—’’Ž›‹…Ž—†‡•‹’‘”–•
ȋ͸Ȍ 
‹•Ž‡˜‹‡†‘‹’‘”–‡†‰‘‘†•—†‡”‡…–‹‘͵‘ˆ—•–‘•ƒ”‹ˆˆ…–
ȋ͹Ȍ —…ŠŽ‡˜›‹••‹—Ž–ƒ‡‘—•™‹–Š–Š‡Ž‡˜›‘ˆƒ•‹…—•–‘•—–›—†‡”•‡…–‹‘ͳʹ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ
ȋͺȌ ‡–”‘Ž‡—’”‘†—…–‹–‡•™‹ŽŽ„‡…Šƒ”‰‡ƒ„Ž‡—†‡”
„—–ƒ–ƒŽƒ–‡”†ƒ–‡–‘„‡”‡…‘‡†‡†„›–Š‡

‘—…‹ŽǤ
•—’’Ž›™‘—Ž†„‡–”‡ƒ–‡†ƒ•‹’‘”–‘”‡š’‘”–ǡ‹ˆ…‡”–ƒ‹…‘†‹–‹‘•ƒ”‡•ƒ–‹•ϐ‹‡†ƒ•†‡ϐ‹‡†Ǥ
Zero rated supply ǣš’‘”–•ƒ†•—’’Ž‹‡•–‘•ƒ”‡…‘•‹†‡”‡†ƒ•Ǯœ‡”‘”ƒ–‡†•—’’Ž›ǯ‘™Š‹…Š‘–ƒš‹•’ƒ›ƒ„Ž‡Ǥ
‘™‡˜‡”ǡ‹•ƒŽŽ‘™‡†ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ǡ•ƒˆ‡‰—ƒ”†•ƒ†’”‘…‡†—”‡ƒ•ƒ›„‡’”‡•…”‹„‡†ǡƒ†”‡ˆ—†•‹
”‡•’‡…–‘ˆ•—…Š•—’’Ž‹‡•ƒ›„‡…Žƒ‹‡†„›ˆ‘ŽŽ‘™‹‰‡‹–Š‡”‘ˆ–Š‡•‡‘’–‹‘•ǣ
ȋ‹Ȍ —’’Ž›ƒ†‡™‹–Š‘—––Š‡’ƒ›‡–‘ˆ
—†‡”‘†Ȁƒ†…Žƒ‹”‡ˆ—†‘ˆ——–‹Ž‹•‡†‘”Ǥ
ȋ‹‹Ȍ —’’Ž›ƒ†‡‘’ƒ›‡–‘ˆ
ƒ†…Žƒ‹”‡ˆ—†‘ˆ–Š‡•ƒ‡Ǥ
Refund of integrated tax paid on supply of goods to tourists leaving India ǣ‡…–‹‘ͳͷ‘ˆ–Š‡
…–ǡʹͲͳ͹
’”‘˜‹†‡•ˆ‘””‡ˆ—†‘ˆ
’ƒ‹†–‘ƒ‹–‡”ƒ–‹‘ƒŽ–‘—”‹•–Ž‡ƒ˜‹‰†‹ƒ‘‰‘‘†•„‡‹‰–ƒ‡‘—–•‹†‡†‹ƒǡ•—„Œ‡…–
–‘•—…Š…‘†‹–‹‘•ƒ†•ƒˆ‡‰—ƒ”†•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ‹–‡”ƒ–‹‘ƒŽ–‘—”‹•–Šƒ•„‡‡†‡ϐ‹‡†ƒ•ƒ‘Ǧ”‡•‹†‡–
‘ˆ†‹ƒ™Š‘‡–‡”•†‹ƒˆ‘”ƒ•–ƒ›‘ˆŽ‡••–Šƒ͸‘–Š•Ǥ
™‘—Ž†„‡…Šƒ”‰‡†‘•—…Š•—’’Ž‹‡•ǡ•‹‹Žƒ”Ž›ƒ•‹
–Š‡…‘—”•‡‘ˆ‡š’‘”–Ǥ
The IGST Rules, 2017 ™‡”‡‘–‹ϐ‹‡†˜‹†‡‘–‹ϐ‹…ƒ–‹‘‘ǤͶȀʹͲͳ͹Ǧ–‡‰”ƒ–‡†ƒš†ƒ–‡†ʹͺ–Š —‡ʹͲͳ͹ƒ†ˆ—”–Š‡”
ƒ•ƒ‡†‡†„›‘–‹ϐ‹…ƒ–‹‘‘ǤͳʹȀʹͲͳ͹Ǧ–‡‰”ƒ–‡†ƒšǡ†ƒ–‡†ͳͷ–Š‘˜‡„‡”ǡʹͲͳ͹ƒ†‘–‹ϐ‹…ƒ–‹‘‘ǤͲͶȀʹͲͳͺ
Ȃ–‡‰”ƒ–‡†ƒšǡ†ƒ–‡†͵ͳ•–‡…‡„‡”ǡʹͲͳͺǤ
—Ž‡ ʹ ‘ˆ 
 —Ž‡•ǡ ʹͲͳ͹ Žƒ› †‘™ –Šƒ– –Š‡ ‡–”ƒŽ
‘‘†• ƒ† ‡”˜‹…‡• ƒš —Ž‡•ǡ ʹͲͳ͹ǡ ˆ‘” …ƒ””›‹‰ ‘—– –Š‡
’”‘˜‹•‹‘••’‡…‹ϐ‹‡†‹‡…–‹‘ʹͲ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹•ŠƒŽŽǡ•‘ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›
‹”‡Žƒ–‹‘–‘‹–‡‰”ƒ–‡†–ƒšƒ•–Š‡›ƒ’’Ž›‹”‡Žƒ–‹‘–‘…‡–”ƒŽ–ƒšǤ
UNION TERRITORY GOODS & SERVICES TAX ACT, 2017
Š‡ ‡–”ƒŽ
 …–ǡ ʹͲͳ͹ ™‹ŽŽ „‡ ƒ’’Ž‹…ƒ„Ž‡ ‘ ƒŽŽ –Š‡
‹–”ƒ•–ƒ–‡–”ƒ•ƒ…–‹‘•‘ˆ•—’’Ž›‘ˆ‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡• 
‹•–Š‡
Ž‡˜‹‡†„›–Š‡‹‘‡””‹–‘”›‘
ƒ† ‹• –Š‡ ”‡˜‡—‡ ‘ˆ –Š‡ ‡–”ƒŽ
‘˜‡”‡–Ǥ • 
 –”ƒ•ƒ…–‹‘•‘ˆ–ƒšƒ„Ž‡‰‘‘†•ƒ†•‡”˜‹…‡•™‹–Š‹
™‘—Ž† „‡ Ž‡˜‹‡† ‘ ƒŽŽ –Š‡ –”ƒ•ƒ…–‹‘• ‘ˆ –ƒšƒ„Ž‡ ‰‘‘†• ƒ‹‘‡””‹–‘”›Ǥ
ƒ† •‡”˜‹…‡•ǡ ƒ† ‹• –Š‡”‡ˆ‘”‡ ƒ’’Ž‹…ƒ„Ž‡ ‹ ƒŽŽ –Š‡ •–ƒ–‡•
ƒ†—‹‘–‡””‹–‘”‹‡•‘ˆ†‹ƒǤŠ‡–‡‰”ƒ–‡†
…–ǡʹͲͳ͹™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡‘ƒŽŽ–Š‡‹–‡”Ǧ•–ƒ–‡–”ƒ•ƒ…–‹‘•‘ˆ
‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ–‹•”‡‰—Žƒ–‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ†–Š‡”‡ˆ‘”‡™‹ŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡‘ƒŽŽ–Š‡–”ƒ•ƒ…–‹‘•
‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ’’Ž‹…ƒ„Ž‡‹†‹ƒ‘”‹’‘”–Ȁ‡š’‘”––”ƒ•ƒ…–‹‘•Ǥ‘™‡˜‡”ǡˆ‘”–Š‡’—”’‘•‡‘ˆŽ‡˜›ƒ†
…‘ŽŽ‡…–‹‘‘ˆ
Ž‡˜‹‡†‘‡ƒ…Š‹–”ƒ•–ƒ–‡–”ƒ•ƒ…–‹‘•‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ǡƒŽŽ–Š‡•–ƒ–‡•Ȁ—‹‘–‡””‹–‘”‹‡•‘ˆ
†‹ƒŠƒ˜‡–Š‡‹”‘™•–ƒ–‡Ȁ—‹‘–‡””‹–‘”›Ž‡‰‹•Žƒ–‹‘ǤŠ‡‹‘‡””‹–‘”›
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹‹–‡†•
–‘ƒ‡ƒ’”‘˜‹•‹‘ˆ‘”Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ–ƒš‘‹–”ƒǦ–ƒ–‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š„›–Š‡‹‘
‡””‹–‘”‹‡•ƒ†ˆ‘”ƒ––‡”•…‘‡…–‡†–Š‡”‡™‹–Š‘”‹…‹†‡–ƒŽ–Š‡”‡–‘Ǥ
APPLICABILITY OF THE UTGST ACT, 2017
Š‹•…–ƒ›„‡…ƒŽŽ‡†–Š‡‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹Ǥ–™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡‹–Š‡ˆ‘ŽŽ‘™‹‰
‹‘‡””‹–‘”‹‡•ǣ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 779

Dadra and
Nagar Haveli & Ladakh
Daman & Diu

Lakshwadeep Chandigarh

Applicability
Andaman and Other territory
Nicobar Islands
of the UTGST
Act, 2017

‡ŽŠ‹ƒ†—†—…Š‡””›ƒ”‡–Š‡‘–Š‡”–™‘‹‘‡””‹–‘”‹‡•„—––Š‹•…–™‹ŽŽ‘–„‡ƒ’’Ž‹…ƒ„Ž‡–Š‡”‡ƒ•–Š‡›Šƒ˜‡–Š‡‹”
‘™–ƒ–‡‡‰‹•Žƒ–—”‡ƒ†
‘˜‡”‡–Ǥ–ƒ–‡
™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡‹–Š‡‹”…ƒ•‡Ǥ
‘‡†‡ϐ‹‹–‹‘•’”‡•…”‹„‡†‹–Š‡…–ƒ•†‡ϐ‹‡†—†‡”‡…–‹‘ʹƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ
‡ϐ‹‹–‹‘•ǣ
–Š‹•…–ǡ—Ž‡••–Š‡…‘–‡š–‘–Š‡”™‹•‡”‡“—‹”‡•ǣ
ͳȌ ǮǮƒ’’‘‹–‡††ƒ›ǯǯ‡ƒ•–Š‡†ƒ–‡‘™Š‹…Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽ…‘‡‹–‘ˆ‘”…‡Ǣ
ʹȌ ǮǮ‘‹••‹‘‡”ǯǯ‡ƒ•–Š‡‘‹••‹‘‡”‘ˆ‹‘–‡””‹–‘”›–ƒšƒ’’‘‹–‡†—†‡”•‡…–‹‘͵Ǣ
͵Ȍ ǮǮ†‡•‹‰ƒ–‡†ƒ—–Š‘”‹–›ǯǯ‡ƒ••—…Šƒ—–Š‘”‹–›ƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‘‹••‹‘‡”Ǣ
ͶȌ ǮǮ‡š‡’–•—’’Ž›ǯǯ‡ƒ••—’’Ž›‘ˆƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™Š‹…Šƒ––”ƒ…–•‹Ž”ƒ–‡‘ˆ–ƒš‘”™Š‹…Šƒ›„‡
‡š‡’–ˆ”‘–ƒš—†‡”•‡…–‹‘ͺǡ‘”—†‡”•‡…–‹‘͸‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡƒ†‹…Ž—†‡•
‘Ǧ–ƒšƒ„Ž‡•—’’Ž›Ǣ
ͷȌ ǮǮ‡š‹•–‹‰Žƒ™ǯǯ‡ƒ•ƒ›Žƒ™ǡ‘–‹ϐ‹…ƒ–‹‘ǡ‘”†‡”ǡ”—Ž‡‘””‡‰—Žƒ–‹‘”‡Žƒ–‹‰–‘Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ†—–›‘”
–ƒš‘‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š’ƒ••‡†‘”ƒ†‡„‡ˆ‘”‡–Š‡…‘‡…‡‡–‘ˆ–Š‹•…–„›ƒ”Ž‹ƒ‡–‘”ƒ›
—–Š‘”‹–›‘”’‡”•‘Šƒ˜‹‰–Š‡’‘™‡”–‘ƒ‡•—…ŠŽƒ™ǡ‘–‹ϐ‹…ƒ–‹‘ǡ‘”†‡”ǡ”—Ž‡‘””‡‰—Žƒ–‹‘Ǣ
 ǮǮ
‘˜‡”‡–ǯǯ‡ƒ•–Š‡†‹‹•–”ƒ–‘”‘”ƒ›—–Š‘”‹–›‘”‘ˆϐ‹…‡”ƒ—–Š‘”‹•‡†–‘ƒ…–ƒ•†‹‹•–”ƒ–‘”„›
͸Ȍ –Š‡‡–”ƒŽ
‘˜‡”‡–Ǣ
͹Ȍ ǮǮ‘—–’—– –ƒšǯǯ ‹ ”‡Žƒ–‹‘ –‘ ƒ –ƒšƒ„Ž‡ ’‡”•‘ǡ ‡ƒ• –Š‡ ‹‘ –‡””‹–‘”› –ƒš …Šƒ”‰‡ƒ„Ž‡ —†‡” –Š‹• …– ‘
–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†‡„›Š‹‘”„›Š‹•ƒ‰‡–„—–‡š…Ž—†‡•–ƒš’ƒ›ƒ„Ž‡„›Š‹‘
”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǥ

Š‡
–ƒ–‡•–‘™Š‹…Š–Š‡
…–ǡʹͲͳ͹ƒ’’Ž‹‡•ƒ”‡ǣ
Ȉ †ƒƒƒ†‹…‘„ƒ”•Žƒ†•
Ȉ ƒ•Šƒ†™‡‡’
Ȉ ƒ†”ƒƒ†ƒ‰ƒ”ƒ˜‡Ž‹ƒ†ƒƒƒ†‹—
Ȉ ƒ†ƒŠ
Ȉ Šƒ†‹‰ƒ”ŠǢƒ†
Ȉ –Š‡”–‡””‹–‘”›
 780 Lesson 16 Ȉ EP-TL

APPLICABILITY OF GST ON UNION TERRITORY OF JAMMU & KASHMIR AND LADAKH

•’‡” ƒ—ƒ†ƒ•Š‹”‡‘”‰ƒ‹•ƒ–‹‘…–ǡʹͲͳͻǡ–Š‡–ƒ–‡‘ˆ ƒ—Ƭƒ•Š‹”Šƒ•„‡‡†‹˜‹†‡†„‡–™‡‡
‹‘‡””‹–‘”‹‡•ǡƒ‡Ž›ǡ‹‘‡””‹–‘”›ȋȌ‘ˆ ƒ—ƒ†ƒ•Š‹”ƒ†‘ˆƒ†ƒŠǤŠ‡ƒ’’‘‹–‡††ƒ–‡ˆ‘”
–Š‡•ƒ‡™ƒ•ͳ•–…–‘„‡”ǡʹͲͳͻǤ
 Šƒ• ‹••—‡† ‘–‹ϐ‹…ƒ–‹‘ ‘Ǥ ͸ʹȀʹͲͳͻǦ ‡–”ƒŽ ƒš †ƒ–‡† ʹ͸–Š ‘˜‡„‡”ǡ ʹͲͳͻ ™Š‹…Š •‡‡• –‘ ‘–‹ˆ› –Š‡
–”ƒ•‹–‹‘’Žƒ™‹–Š”‡•’‡…––‘ Ƭ”‡‘”‰ƒ‹œƒ–‹‘™Ǥ‡ǤˆǤ͵ͳǤͳͲǤʹͲͳͻǤ
‘™‡˜‡”ǡƒ•’‡”‡…–‹‘ʹȋͳͳͶȌ‘ˆ–Š‡
…–ǡDz‹‘‡””‹–‘”›dz‡ƒ•ȋƒȌŠ‡†ƒƒƒ†‹…‘„ƒ”•Žƒ†•Ǣȋ„Ȍ
ƒ•Šƒ†™‡‡’Ǣ ȋ…Ȍ ƒ†”ƒ ƒ† ƒ‰ƒ” ƒ˜‡Ž‹Ǣ ȋ†Ȍ ƒƒ ƒ† ‹—Ǣ ȋ‡Ȍ Šƒ†‹‰ƒ”ŠǢ ƒ† ȋˆȌ –Š‡” –‡””‹–‘”›Ǥ ‡…‡ǡ
ƒ†ƒŠ‹•›‡––‘„‡‹…Ž—†‡†—†‡”–Š‡ƒˆ‘”‡•ƒ‹††‡ϐ‹‹–‹‘Ǥ‡…–‹‘͵‘ˆ–Š‡•ƒ‹†…–•–ƒ–‡•–Šƒ–‹‘‡””‹–‘”›‘ˆ
ƒ†ƒŠ•ŠƒŽŽ„‡ˆ‘”‡†™‹–Š‘—–Ž‡‰‹•Žƒ–—”‡Ǥ‡…‡ǡ‹–•ŠƒŽŽŠƒ˜‡•–ƒ–—•–‘–Šƒ–‘ˆƒ‹‘‡””‹–‘”›Ǥ
˜‹‡™–Š‡”‡‘ˆǡ‹‘‡””‹–‘”›‘ˆ ƒ—ƒ†ƒ•Š‹”•ŠƒŽŽ…‘–‹—‡–‘…Šƒ”‰‡
ƒ†
ˆ‘”‹–”ƒǦ•–ƒ–‡
•—’’Ž‹‡•ǡŠ‘™‡˜‡”ˆ‘”•—’’Ž‹‡•ƒ†‡ˆ”‘ ƒ—Ƭƒ•Š‹”–‘ƒ†ƒŠȋƒ†˜‹…‡Ȃ˜‡”•ƒȌǡ
•ŠƒŽŽ„‡…Šƒ”‰‡†
ȏ‡…–‹‘͹ȋͳȌȋ„Ȍ‘ˆ–Š‡
…–ȐǤ
ƒ†
™‹ŽŽ„‡…Šƒ”‰‡†ˆ‘”•—’’Ž‹‡•ƒ†‡‹ƒ†ƒŠǤ
‘™ǡ–Š‡‹‹•–”›‘ˆ‘‡ˆˆƒ‹”•ȋ‡’ƒ”–‡–‘ˆ ƒ—ƒ†ƒ•Š‹”ˆˆƒ‹”•ȌŠƒ•‹••—‡†ƒ‡‘˜ƒŽ‘ˆ‹ˆϐ‹…—Ž–‹‡•
”†‡”†ƒ–‡†͵ͲǦͳͲǦʹͲͳͻ™Š‹…Š•‡‡•–‘”‡‘˜‡†‹ˆϐ‹…—Ž–‹‡•ƒ”‹•‹‰‹‰‹˜‹‰‡ˆˆ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡ ƒ—
ƒ†ƒ•Š‹”‡‘”‰ƒ‹•ƒ–‹‘…–ǡʹͲͳͻǤ
‘™ǡ‡…–‹‘ʹȋ͹Ȍ‘ˆ–Š‡•ƒ‹†‘”†‡”•–ƒ–‡•–Šƒ–ǣ
DzŠ‡ ƒ—ƒ†ƒ•Š‹”
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡‹‘‡””‹–‘”›‘ˆ ƒ—ƒ†
ƒ•Š‹”ƒ†–Š‡‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹•ŠƒŽŽ„‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡‹‘‡””‹–‘”›‘ˆ
ƒ†ƒŠǤdz
MERGER OF DAMAN & DIU AND DADRA & NAGAR HAVELI
͵”††ƒ›‘ˆ‡…‡„‡”ǡʹͲͳͻ–Š‡ƒ”Ž‹ƒ‡–’ƒ••‡†–Š‡ƒ†”ƒƒ†ƒ‰ƒ”ƒ˜‡Ž‹ƒ†ƒƒƒ†‹—‹ŽŽǡʹͲͳͻ
ˆ‘” –Š‡ ‡”‰‡” ‘ˆ –Š‡ –™‘ • ƒ† –Š‡ ƒ’’‘‹–‡† †ƒ–‡ ‘ˆ –Š‡ •ƒ‹† ƒ‡†‡– ™ƒ• ƒ†‡ ‡ˆˆ‡…–‹˜‡ ˆ”‘ ʹ͸–Š
ƒ—ƒ”›ǡʹͲʹͲǤ
’‘‡”‰‡”‘ˆ‹‘‡””‹–‘”‹‡•‘ˆƒ†”ƒƒ†ƒ‰ƒ”ƒ˜‡Ž‹ƒ†ƒƒƒ†‹—ǡ–Š‡”‡ƒ”‹•‡†ƒ‡‡†–‘†‡…Žƒ”‡
•‹‰Ž‡–ƒ–‡‘†‡ˆ‘”‡”•‘•‡‰‹•–‡”‡†—†‡”
‘‘†•ƒ†‡”˜‹…‡ƒšƒ™•‹–Š‡‹‘‡””‹–‘”‹‡•Ǥ
–™ƒ•†‡…‹†‡†„›–Š‡
‘—…‹Ž–‘‰‹˜‡ʹ͸ƒ•–ƒ–‡‘†‡ʹ͸–‘–Š‡‡”‰‡†‹‘‡””‹–‘”›‘ˆƒ†”ƒƒ†ƒ‰ƒ”
ƒ˜‡Ž‹ƒ†ƒƒƒ†‹—™Ǥ‡ǤˆǤͳ•–—‰—•–ǡʹͲʹͲǤ
Š‡”‡ˆ‘”‡ǡ ƒŽŽ –Š‡ ‡‰‹•–‡”‡† ‡”•‘• ‹ –Š‡ ‡”•–™Š‹Ž‡ ‹‘ ‡””‹–‘”› ‘ˆ ƒƒ ƒ† ‹— Šƒ˜‹‰

ȋ
‘‘†•ƒ†‡”˜‹…‡ƒš†‡–‹ˆ‹…ƒ–‹‘—„‡”Ȍ•–ƒ”–‹‰™‹–Š–ƒ–‡‘†‡ʹͷ™‹ŽŽ„‡•™‹–…Š‡†‘˜‡”–‘‡™–ƒ–‡
‘†‡‘ˆʹ͸Ǥ
ADMINISTRATION & POWERS OF OFFICERS [SECTION 4, 5 & 6]
Š‡†‹‹•–”ƒ–‘”ƒ›ǡ„›‘”†‡”ǡƒ—–Š‘”‹•‡ƒ›‘ˆϐ‹…‡”–‘ƒ’’‘‹–‘ˆϐ‹…‡”•‘ˆ‹‘‡””‹–‘”›–ƒš„‡Ž‘™–Š‡”ƒ‘ˆ
••‹•–ƒ–‘‹••‹‘‡”‘ˆ‹‘‡””‹–‘”›–ƒšˆ‘”–Š‡ƒ†‹‹•–”ƒ–‹‘‘ˆ–Š‹•…–ǤŠ‡‘‹••‹‘‡”ƒ›ǡ•—„Œ‡…––‘
•—…Š…‘†‹–‹‘•ƒ†Ž‹‹–ƒ–‹‘•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‹•„‡ŠƒŽˆ„›Š‹ǡ†‡Ž‡‰ƒ–‡Š‹•’‘™‡”•–‘ƒ›‘–Š‡”‘ˆϐ‹…‡”
•—„‘”†‹ƒ–‡–‘Š‹Ǥ
‹–Š‘—–’”‡Œ—†‹…‡–‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ–Š‡‘ˆϐ‹…‡”•ƒ’’‘‹–‡†—†‡”–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡ
ʹͲͳ͹ ƒ”‡ ƒ—–Š‘”‹•‡† –‘ „‡ –Š‡ ’”‘’‡” ‘ˆϐ‹…‡”• ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ –Š‹• …–ǡ •—„Œ‡…– –‘ •—…Š …‘†‹–‹‘• ƒ• –Š‡

‘˜‡”‡–•ŠƒŽŽǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›Ǥ
—„Œ‡…––‘–Š‡…‘†‹–‹‘••’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘‹••—‡†ǣ
ƒȌ ™Š‡”‡ƒ›’”‘’‡”‘ˆϐ‹…‡”‹••—‡•ƒ‘”†‡”—†‡”–Š‹•…–ǡŠ‡•ŠƒŽŽƒŽ•‘‹••—‡ƒ‘”†‡”—†‡”–Š‡‡–”ƒŽ
‘‘†•
ƒ†‡”˜‹…‡•ƒš…–ǡƒ•ƒ—–Š‘”‹•‡†„›–Š‡•ƒ‹†…–—†‡”‹–‹ƒ–‹‘–‘–Š‡Œ—”‹•†‹…–‹‘ƒŽ‘ˆϐ‹…‡”‘ˆ…‡–”ƒŽ–ƒšǢ
„Ȍ ™Š‡”‡ ƒ ’”‘’‡” ‘ˆϐ‹…‡” —†‡” –Š‡ ‡–”ƒŽ
‘‘†• ƒ† ‡”˜‹…‡• ƒš …– Šƒ• ‹‹–‹ƒ–‡† ƒ› ’”‘…‡‡†‹‰• ‘ ƒ
•—„Œ‡…–ƒ––‡”ǡ‘’”‘…‡‡†‹‰••ŠƒŽŽ„‡‹‹–‹ƒ–‡†„›–Š‡’”‘’‡”‘ˆϐ‹…‡”—†‡”–Š‹•…–‘–Š‡•ƒ‡•—„Œ‡…–
ƒ––‡”Ǥ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 781

› ’”‘…‡‡†‹‰• ˆ‘” ”‡…–‹ϐ‹…ƒ–‹‘ǡ ƒ’’‡ƒŽ ƒ† ”‡˜‹•‹‘ǡ ™Š‡”‡˜‡” ƒ’’Ž‹…ƒ„Ž‡ǡ ‘ˆ ƒ› ‘”†‡” ’ƒ••‡† „› ƒ ‘ˆϐ‹…‡”
ƒ’’‘‹–‡†—†‡”–Š‹•…–ǡ•ŠƒŽŽ‘–Ž‹‡„‡ˆ‘”‡ƒ‘ˆϐ‹…‡”ƒ’’‘‹–‡†—†‡”–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–Ǥ

LEVY AND COLLECTION OF UTGST [SECTION 7]

•’‡”–Š‡’”‘˜‹•‹‘‘ˆ‡…–‹‘͹‘ˆ–Š‡
…–ǡʹͲͳ͹–Š‡”‡•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ–ƒš…ƒŽŽ‡†–Š‡‹‘–‡””‹–‘”›–ƒš‘
ƒŽŽ‹–”ƒǦ–ƒ–‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‡š…‡’–‘–Š‡•—’’Ž›‘ˆƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘ǡ
‘–Š‡˜ƒŽ—‡†‡–‡”‹‡†—†‡”•‡…–‹‘ͳͷ‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒ†ƒ–•—…Š”ƒ–‡•ǡ‘–
‡š…‡‡†‹‰–™‡–›’‡”…‡–ǡƒ•ƒ›„‡‘–‹ϐ‹‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Ž
ƒ†…‘ŽŽ‡…–‡†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†ƒ†•ŠƒŽŽ„‡’ƒ‹†„›–Š‡–ƒšƒ„Ž‡’‡”•‘Ǥ
‘™‡˜‡”ǡ –Š‡ ‹‘ –‡””‹–‘”› –ƒš ‘ –Š‡ •—’’Ž› ‘ˆ ’‡–”‘Ž‡— …”—†‡ǡ Š‹‰Š •’‡‡† †‹‡•‡Žǡ ‘–‘” •’‹”‹– ȋ…‘‘Ž›
‘™ƒ•’‡–”‘ŽȌǡƒ–—”ƒŽ‰ƒ•ƒ†ƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡Ž•ŠƒŽŽ„‡Ž‡˜‹‡†™‹–Š‡ˆˆ‡…–ˆ”‘•—…Š†ƒ–‡ƒ•ƒ›„‡‘–‹ϐ‹‡†
„›–Š‡‡–”ƒŽ
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹ŽǤ
Š‡
‘—…‹ŽŠƒ•ƒŽ”‡ƒ†›ƒ’’”‘˜‡†–Š‡–‘–ƒŽ–ƒš”ƒ–‡•‘ˆͲΨǡͷΨǡͳʹΨǡͳͺΨƒ†ʹͺΨǤŠ‡Š‹‰Š‡•–ƒ’’Ž‹…ƒ„Ž‡
ƒ’’”‘˜‡†”ƒ–‡‘ˆ
Šƒ•„‡‡’”‡•…”‹„‡†ƒ–ʹͲΨǤŠ‘—‰Š–Š‡Š‹‰Š‡•–”ƒ–‡‘ˆ–ƒšƒ•…Šƒ”‰‡•ƒ•
™‘—Ž†‘–
„‡‘”‡–ŠƒͳͶΨ„—–ƒ‡ƒ„Ž‹‰Ž‹‹–‘ˆʹͲΨŠƒ•„‡‡’”‡•…”‹„‡†‹Žƒ™–‘ƒ˜‘‹†‡‡†‘ˆ…Šƒ‰‹‰–Š‡Žƒ™ǡ‹…ƒ•‡
‘ˆ‡‡†–‘”‡˜‹•‡–Š‡”ƒ–‡‘ˆ–ƒš‹ˆ—–—”‡Ǥ
ŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘ƒ”‡…‹’‹‡–‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ‘–‹ϐ‹‡†—†‡””‡˜‡”•‡…Šƒ”‰‡ƒ•
‹ˆŠ‡‹•–Š‡’‡”•‘Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰–Š‡–ƒš‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆ•—…Š‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ
Š‡
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›ƒ…Žƒ••‘ˆ”‡‰‹•–‡”‡†’‡”•‘•
™Š‘•ŠƒŽŽǡ‹”‡•’‡…–‘ˆ•—’’Ž›‘ˆ•’‡…‹ϐ‹‡†…ƒ–‡‰‘”‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š”‡…‡‹˜‡†ˆ”‘ƒ—”‡‰‹•–‡”‡†
•—’’Ž‹‡”ǡ’ƒ›–Š‡–ƒš‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•ƒ•–Š‡”‡…‹’‹‡–‘ˆ•—…Š•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡƒ†ƒŽŽ–Š‡
’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘•—…Š”‡…‹’‹‡–ƒ•‹ˆŠ‡‹•–Š‡’‡”•‘Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰–Š‡–ƒš‹”‡Žƒ–‹‘–‘•—…Š
•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ
Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ•’‡…‹ˆ›…ƒ–‡‰‘”‹‡•‘ˆ•‡”˜‹…‡•ǡ
–Š‡ –ƒš ‘ ‹–”ƒǦ–ƒ–‡ •—’’Ž‹‡• ‘ˆ ™Š‹…Šǡ •ŠƒŽŽ „‡ ’ƒ‹† „› –Š‡ ‡Ž‡…–”‘‹… …‘‡”…‡ ‘’‡”ƒ–‘” ‹ˆ •—…Š •‡”˜‹…‡• ƒ”‡
•—’’Ž‹‡†–Š”‘—‰Š‹–ǡƒ†ƒŽŽ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–•ŠƒŽŽƒ’’Ž›–‘•—…Š‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”ƒ•‹ˆŠ‡‹•–Š‡
•—’’Ž‹‡”Ž‹ƒ„Ž‡ˆ‘”’ƒ›‹‰–Š‡–ƒš‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆ•—…Š•‡”˜‹…‡•Ǥ
”‘˜‹†‡†–Šƒ–™Š‡”‡ƒ‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”†‘‡•‘–Šƒ˜‡ƒ’Š›•‹…ƒŽ’”‡•‡…‡‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›ǡ
ƒ›’‡”•‘”‡’”‡•‡–‹‰•—…Š‡Ž‡…–”‘‹……‘‡”…‡‘’‡”ƒ–‘”ˆ‘”ƒ›’—”’‘•‡‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›•ŠƒŽŽ„‡Ž‹ƒ„Ž‡
–‘’ƒ›–ƒšǤ
—”–Š‡”‹–‹•’”‘˜‹†‡†–Šƒ–™Š‡”‡ ƒ ‡Ž‡…–”‘‹… …‘‡”…‡ ‘’‡”ƒ–‘” †‘‡• ‘– Šƒ˜‡ ƒ ’Š›•‹…ƒŽ ’”‡•‡…‡ ‹ –Š‡
–ƒšƒ„Ž‡–‡””‹–‘”›ƒ†ƒŽ•‘Š‡†‘‡•‘–Šƒ˜‡ƒ”‡’”‡•‡–ƒ–‹˜‡‹–Š‡•ƒ‹†–‡””‹–‘”›ǡ•—…Š‡Ž‡…–”‘‹……‘‡”…‡
‘’‡”ƒ–‘”•ŠƒŽŽƒ’’‘‹–ƒ’‡”•‘‹–Š‡–ƒšƒ„Ž‡–‡””‹–‘”›ˆ‘”–Š‡’—”’‘•‡‘ˆ’ƒ›‹‰–ƒšƒ†•—…Š’‡”•‘•ŠƒŽŽ„‡
Ž‹ƒ„Ž‡–‘’ƒ›–ƒšǤ
EXEMPTION FROM GST [SECTION 8]
•’‡”–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘ͺ‘ˆ–Š‡…–ǡ–Š‡‡–”ƒŽ
‘˜‡”‡–‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹Žǡ
„›‘–‹ϐ‹…ƒ–‹‘‡š‡’–‡‹–Š‡”ƒ„•‘Ž—–‡Ž›‘”•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†–Š‡”‡‹ǡ‰‘‘†•‘”•‡”˜‹…‡•
‘”„‘–Š‘ˆƒ›•’‡…‹ϐ‹‡††‡•…”‹’–‹‘ˆ”‘–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡–ƒšŽ‡˜‹ƒ„Ž‡‘•—…Š•—’’Ž›Ǥ‘–Š‡”…ƒ•‡•ǡ
‡–”ƒŽ
‘˜‡”‡– ‹ ’—„Ž‹… ‹–‡”‡•– ƒ† ‘ ”‡…‘‡†ƒ–‹‘ ‘ˆ –Š‡ ‘—…‹Žǡ „› •’‡…‹ƒŽ ‘”†‡”ǡ ‡š‡’– ˆ”‘
’ƒ›‡–‘ˆ–ƒšǤ
Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ‹ˆ‹–…‘•‹†‡”•‡…‡••ƒ”›‘”‡š’‡†‹‡–•‘–‘†‘ˆ‘”–Š‡’—”’‘•‡‘ˆ…Žƒ”‹ˆ›‹‰–Š‡•…‘’‡
‘”ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆƒ›‘–‹ϐ‹…ƒ–‹‘‘”‘”†‡”‹••—‡†ǡ‹•‡”–ƒ‡š’Žƒƒ–‹‘‹•—…Š‘–‹ϐ‹…ƒ–‹‘‘”‘”†‡”ǡƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ„›‘–‹ϐ‹…ƒ–‹‘ƒ–ƒ›–‹‡™‹–Š‹‘‡›‡ƒ”‘ˆ‹••—‡‘ˆ–Š‡‘–‹ϐ‹…ƒ–‹‘—†‡”‡…–‹‘ͺȋͳȌ‘”‘”†‡”—†‡”
‡…–‹‘ͺȋʹȌǡƒ†‡˜‡”›•—…Š‡š’Žƒƒ–‹‘•ŠƒŽŽŠƒ˜‡‡ˆˆ‡…–ƒ•‹ˆ‹–Šƒ†ƒŽ™ƒ›•„‡‡–Š‡’ƒ”–‘ˆ–Š‡ϐ‹”•–•—…Š‘–‹ϐ‹…ƒ–‹‘
‘”‘”†‡”ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǥ
Explanation Ȃ ‘”–Š‡’—”’‘•‡•‘ˆ–Š‹••‡…–‹‘ǡ™Š‡”‡ƒ‡š‡’–‹‘‹”‡•’‡…–‘ˆƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šˆ”‘–Š‡
™Š‘Ž‡‘”’ƒ”–‘ˆ–Š‡–ƒšŽ‡˜‹ƒ„Ž‡–Š‡”‡‘Šƒ•„‡‡‰”ƒ–‡†ƒ„•‘Ž—–‡Ž›ǡ–Š‡”‡‰‹•–‡”‡†’‡”•‘•—’’Ž›‹‰•—…Š‰‘‘†•‘”
•‡”˜‹…‡•‘”„‘–Š•ŠƒŽŽ‘–…‘ŽŽ‡…––Š‡–ƒšǡ‹‡š…‡••‘ˆ–Š‡‡ˆˆ‡…–‹˜‡”ƒ–‡ǡ‘•—…Š•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ
 782 Lesson 16 Ȉ EP-TL

PAYMENT OF TAX [SECTION 9]

•’‡”–Š‡’”‘˜‹•‹‘‘ˆ•‡…–‹‘ͻ‘ˆ–Š‡…–ǡ–Š‡ƒ‘—–‘ˆ‹’—––ƒš…”‡†‹–ƒ˜ƒ‹Žƒ„Ž‡‹–Š‡‡Ž‡…–”‘‹……”‡†‹–Ž‡†‰‡”‘ˆ
–Š‡”‡‰‹•–‡”‡†’‡”•‘‘ƒ……‘—–‘ˆǣ
ƒȌ ‹–‡‰”ƒ–‡†–ƒš•ŠƒŽŽϐ‹”•–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšƒ†–Š‡ƒ‘—–”‡ƒ‹‹‰ǡ‹ˆƒ›ǡƒ›
„‡—–‹Ž‹•‡†–‘™ƒ”†•–Š‡’ƒ›‡–‘ˆ‡–”ƒŽ–ƒšƒ†–ƒ–‡–ƒšǡ‘”ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹‘–‡””‹–‘”›–ƒšǡ‹–Šƒ–
‘”†‡”Ǣ
„Ȍ –Š‡‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽϐ‹”•–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹‘–‡””‹–‘”›–ƒšƒ†–Š‡ƒ‘—–”‡ƒ‹‹‰ǡ
‹ˆƒ›ǡƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšǢ
…Ȍ –Š‡‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ‘–„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‡–”ƒŽ–ƒšǤ
The amount of input tax credit available in the electronic credit ledger of the registered person on
account of:

Ȉ ‹–‡‰”ƒ–‡†–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†‹‘”†‡”‘ˆǣ
Ȉ –‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒšƒ†
1. Ȉ ƒ‘—–”‡ƒ‹‹‰ǡƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•–Š‡’ƒ›‡–
‘ˆ‡–”ƒŽ–ƒšƒ†–ƒ–‡–ƒšǡ‘”ƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹‘
–‡””‹–‘”›–ƒš

Ȉ –Š‡‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡—–‹Ž‹•‡†‹‘”†‡”‘ˆǣ
Ȉ –‘™ƒ”†•’ƒ›‡–‘ˆ‹‘–‡””‹–‘”›–ƒšƒ†
2. Ȉ ƒ‘—–”‡ƒ‹‹‰ǡƒ›„‡—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ
‹–‡‰”ƒ–‡†–ƒš

Ȉ –Š‡‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ‘–„‡—–‹Ž‹•‡†–‘™ƒ”†•
3. ’ƒ›‡–‘ˆ‡–”ƒŽ–ƒšǤ

Utilisation of input tax credit [Section 9A]

‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•‡…–‹‘ͻǡ–Š‡‹’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‹‘–‡””‹–‘”›–ƒš•ŠƒŽŽ„‡
—–‹Ž‹•‡†–‘™ƒ”†•’ƒ›‡–‘ˆ‹–‡‰”ƒ–‡†–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‘Ž›ƒˆ–‡”–Š‡‹’—––ƒš…”‡†‹–
ƒ˜ƒ‹Žƒ„Ž‡‘ƒ……‘—–‘ˆ‹–‡‰”ƒ–‡†–ƒšŠƒ•ϐ‹”•–„‡‡—–‹Ž‹•‡†–‘™ƒ”†••—…Š’ƒ›‡–Ǥ
Order of utilisation of input tax credit [Section 9B]
‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹–Š‹•Šƒ’–‡”ƒ†•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ…Žƒ—•‡ȋ…Ȍ‘ˆ•‡…–‹‘ͻǡ–Š‡

‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ’”‡•…”‹„‡–Š‡‘”†‡”ƒ†ƒ‡”‘ˆ—–‹Ž‹•ƒ–‹‘‘ˆ–Š‡‹’—–
–ƒš…”‡†‹–‘ƒ……‘—–‘ˆ‹–‡‰”ƒ–‡†–ƒšǡ‡–”ƒŽ–ƒšǡ–ƒ–‡–ƒš‘”‹‘–‡””‹–‘”›–ƒšǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–‘™ƒ”†•
’ƒ›‡–‘ˆƒ›•—…Š–ƒšǤ
”†‡”‘ˆ—–‹Ž‹œƒ–‹‘‘ˆ‹’—––ƒš…”‡†‹–ƒ–’”‡•‡–‹•ƒ•ˆ‘ŽŽ‘™•ǣ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 783

Input tax credit on Output liability on Output liability on Output liability on

account of account of Integratedtax account of Central tax account of State tax/
Union Territory tax

–‡‰”ƒ–‡†–ƒš ȋȌ ȋȌȂƒ›‘”†‡”ƒ†‹ƒ›’”‘’‘”–‹‘

ȋȌ’—––ƒš…”‡†‹–‘ƒ……‘—–‘ˆ–‡‰”ƒ–‡†–ƒš–‘„‡…‘’Ž‡–‡†‡šŠƒ—•–‡†ƒ†ƒ–‘”‹Ž›
Central tax ȋȌ ȋȌ ‘–’‡”‹––‡†
State tax/ Union
ȋȌ ‘–’‡”‹––‡† ȋȌ
Territory tax
Š‡”‡‹•‘‘ˆˆ•‡–ƒ˜ƒ‹Žƒ„Ž‡„‡–™‡‡–Š‡
ƒ†–Š‡
Ȁ
Ǥ
INPUT TAX CREDIT ON INPUT STOCKS [SECTION 18]
Š‡‡Ž‹‰‹„Ž‡‹’—––ƒš…”‡†‹–•‹”‡•’‡…–‘ˆ‹’—–•Š‡Ž†‹•–‘…•ǡ‹’—–•Š‡Ž†‹•‡‹ϐ‹‹•Š‡†‰‘‘†•ƒ†‹’—–•Š‡Ž†
‹•–‘…‘ˆϐ‹‹•Š‡†‰‘‘†•‘–Š‡†ƒ›‹‡†‹ƒ–‡Ž›’”‡…‡†‹‰–Š‡ƒ’’‘‹–‡††ƒ›™‹ŽŽ„‡‡Ž‹‰‹„Ž‡ƒ•‹’—––ƒš…”‡†‹––‘
„‡–ƒ‡ƒ•
‹–Š‡‡Ž‡…–”‘‹…Ž‡†‰‡”Ǥ
Š‡ˆ‘ŽŽ‘™‹‰”‡‰‹•–‡”‡†–ƒšƒ„Ž‡’‡”•‘™‹ŽŽ„‡‡Ž‹‰‹„Ž‡ˆ‘”–Š‡‹’—––ƒš…”‡†‹–ǣ
ƒȌ Š‘™ƒ•‘–Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡†Ǥ
„Ȍ Š‘™ƒ•‹˜‘Ž˜‡†‹†‡ƒŽ‹‰™‹–Š‡š‡’–‡†‰‘‘†•‘”–ƒšˆ”‡‡‰‘‘†•Ǥ
…Ȍ
‘‘†•™Š‹…ŠŠƒ˜‡•—ˆˆ‡”‡†–ƒšƒ–ϐ‹”•–’‘‹–‘ˆ•ƒŽ‡ƒ†–Š‡‹”•—„•‡“—‡–•ƒŽ‡™ƒ•‘–Ž‹ƒ„Ž‡–‘–ƒš‹–Š‡‹‘
‡””‹–‘”›—†‡”–Š‡’”‡˜‹‘—•Žƒ™„—–™Š‹…Šƒ”‡Ž‹ƒ„Ž‡–‘„‡–ƒš‡†‹
Ǥ
†Ȍ Š‡”‡ƒ’‡”•‘‹•‡–‹–Ž‡†–‘–ƒšƒ––Š‡–‹‡‘ˆ•ƒŽ‡Ǥ
‘™‡˜‡”ǡ–Š‡’—––ƒš…”‡†‹–‹•ƒ˜ƒ‹Žƒ„Ž‡•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘•ǣ
‹Ǥ •—…Š‹’—–•‘”‰‘‘†•ƒ”‡—•‡†‘”‹–‡†‡†–‘„‡—•‡†ˆ‘”ƒ‹‰–ƒšƒ„Ž‡•—’’Ž‹‡•—†‡”
Ǣ
‹‹ –Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘‹•‡Ž‹‰‹„Ž‡ˆ‘”‹’—––ƒš…”‡†‹–‘•—…Š‹’—–•—†‡”
Ǣ
‹‹‹Ǥ –Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘‹•‹’‘••‡••‹‘‘ˆ‹˜‘‹…‡‘”‘–Š‡”’”‡•…”‹„‡††‘…—‡–•‡˜‹†‡…‹‰’ƒ›‡–‘ˆ
–ƒš—†‡”–Š‡‡š‹•–‹‰Žƒ™‹”‡•’‡…–‘ˆ•—…Š‹’—–•Ǣƒ†
‹˜Ǥ •—…Š ‹˜‘‹…‡• ‘” ‘–Š‡” ’”‡•…”‹„‡† †‘…—‡–• ™‡”‡ ‹••—‡† ‘– ‡ƒ”Ž‹‡” –Šƒ –™‡Ž˜‡ ‘–Š• ‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰–Š‡ƒ’’‘‹–‡††ƒ›Ǥ
‘™‡˜‡”ǡ‹…ƒ•‡•—…Š–ƒšƒ„Ž‡’‡”•‘‹•‘–‹’‘••‡••‹‘‘ˆ‹˜‘‹…‡‘”–ƒš’ƒ›‹‰†‘…—‡–ǡ•—…Š’‡”•‘…ƒ–ƒ‡
…”‡†‹–ƒ–•—…Š”ƒ–‡ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ‘™‡˜‡”Š‡™‘—Ž†„‡”‡“—‹”‡†–‘’ƒ••–Š‡„‡‡ϐ‹–‘ˆ”‡†—…‡†–ƒš‡•–‘Š‹•
”‡…‹’‹‡–•Ǥ

Registered taxable person will be eligible for the

Conditions for availing the Input tax credit
input tax credit in the following cases
Ȉ ‘–Ž‹ƒ„Ž‡–‘„‡”‡‰‹•–‡”‡† Ȉ •‡† ‘” ‹–‡†‡† –‘ „‡ —•‡† ˆ‘” ƒ‹‰ –ƒšƒ„Ž‡
Ȉ ˜‘Ž˜‡†‹†‡ƒŽ‹‰™‹–Š‡š‡’–‡†‰‘‘†•‘”–ƒšˆ”‡‡ •—’’Ž‹‡•—†‡”

‰‘‘†• Ȉ ‡‰‹•–‡”‡† ’‡”•‘ ‹• ‡Ž‹‰‹„Ž‡ ˆ‘” ‹’—– –ƒš …”‡†‹–
—†‡”
Žƒ™
Ȉ
‘‘†•™Š‹…ŠŠƒ˜‡•—ˆˆ‡”‡†–ƒšƒ–ϐ‹”•–’‘‹–‘ˆ•ƒŽ‡
Ȉ ƒ‹† ’‡”•‘ ‹• ‹ ’‘••‡••‹‘ ‘ˆ ‹˜‘‹…‡ ‘” ‘–Š‡”
ƒ†–Š‡‹”•—„•‡“—‡–•ƒŽ‡™ƒ•‘–Ž‹ƒ„Ž‡–‘–ƒš‹
’”‡•…”‹„‡††‘…—‡–•‡˜‹†‡…‹‰’ƒ›‡–‘ˆ–ƒš
–Š‡ ‹‘ ‡””‹–‘”› —†‡” –Š‡ ’”‡˜‹‘—• Žƒ™ „—–
™Š‹…Šƒ”‡Ž‹ƒ„Ž‡–‘„‡–ƒš‡†‹
 Ȉ —…Š ‹˜‘‹…‡• ‘” ‘–Š‡” ’”‡•…”‹„‡† †‘…—‡–• ™‡”‡
‹••—‡† ‘– ‡ƒ”Ž‹‡” –Šƒ –™‡Ž˜‡ ‘–Š• ‹‡†‹ƒ–‡Ž›
Ȉ ‡”•‘‹•‡–‹–Ž‡†–‘–ƒšƒ––Š‡–‹‡‘ˆ•ƒŽ‡
’”‡…‡†‹‰–Š‡ƒ’’‘‹–‡††ƒ›
 784 Lesson 16 Ȉ EP-TL

INPUT TAX CREDIT: TAXABLE AS WELL AS EXEMPTED GOODS

”‡‰‹•–‡”‡†’‡”•‘ǡ™Š‘™ƒ•‡‰ƒ‰‡†‹–Š‡•ƒŽ‡‘ˆ–ƒšƒ„Ž‡‰‘‘†•ƒ•™‡ŽŽƒ•‡š‡’–‡†‰‘‘†•‘”–ƒšˆ”‡‡‰‘‘†•
—†‡”–Š‡‡š‹•–‹‰Žƒ™„—–™Š‹…Šƒ”‡Ž‹ƒ„Ž‡–‘–ƒš—†‡”–Š‹•…–ǡ•ŠƒŽŽ„‡‡–‹–Ž‡†–‘–ƒ‡ǡ‹Š‹•‡Ž‡…–”‘‹……”‡†‹–
Ž‡†‰‡”–Š‡ƒ‘—–‘ˆ…”‡†‹–‘ˆ–Š‡˜ƒŽ—‡ƒ††‡†–ƒšƒ†‡–”›–ƒšǡ‹ˆƒ›ǡ…ƒ””‹‡†ˆ‘”™ƒ”†‹ƒ”‡–—”ˆ—”‹•Š‡†—†‡”
–Š‡’”‡˜‹‘—•Žƒ™„›Š‹ƒ†–Š‡ƒ‘—–‘ˆ…”‡†‹–‘ˆ–Š‡˜ƒŽ—‡ƒ††‡†–ƒšƒ†‡–”›–ƒšǡ‹ˆƒ›ǡ‹”‡•’‡…–‘ˆ‹’—–•
Š‡Ž†‹•–‘…ƒ†‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧϐ‹‹•Š‡†‘”ϐ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…‘–Š‡ƒ’’‘‹–‡††ƒ›ǡ”‡Žƒ–‹‰–‘
•—…Š‡š‡’–‡†‰‘‘†•‘”–ƒšˆ”‡‡‰‘‘†•‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡…–Ǥ
SWITCH OVER FROM COMPOSITION LEVY
”‡‰‹•–‡”‡†’‡”•‘ǡ™Š‘™ƒ•‡‹–Š‡”’ƒ›‹‰–ƒšƒ–ƒˆ‹š‡†”ƒ–‡‘”’ƒ›‹‰ƒˆ‹š‡†ƒ‘—–‹Ž‹‡—‘ˆ–Š‡–ƒš’ƒ›ƒ„Ž‡
—†‡”–Š‡’”‡˜‹‘—• Žƒ™ •ŠƒŽŽ „‡ ‡Ž‹‰‹„Ž‡ ˆ‘”ǡ …”‡†‹– ‘ˆ˜ƒŽ—‡ ƒ††‡†–ƒš ‹”‡•’‡…– ‘ˆ‹’—–• Š‡Ž†‹•–‘… ƒ†
‹’—–•…‘–ƒ‹‡†‹•‡‹Ǧˆ‹‹•Š‡†‘”ˆ‹‹•Š‡†‰‘‘†•Š‡Ž†‹•–‘…‘–Š‡ƒ’’‘‹–‡††ƒ›•—„Œ‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰
…‘†‹–‹‘•ǣ
‹Ǥ —…Š‹’—–•‘”‰‘‘†•™‡”‡—•‡†‘”‹–‡†‡†–‘„‡—•‡†ˆ‘”ƒ‹‰–ƒšƒ„Ž‡•—’’Ž‹‡•—†‡”–Š‹•…–Ǣ
‹‹Ǥ –Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘‹•‘–’ƒ›‹‰–ƒš—†‡”•‡…–‹‘ͳͲ‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–Ǣ
‹‹‹Ǥ –Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘‹•‡Ž‹‰‹„Ž‡ˆ‘”‹’—––ƒš…”‡†‹–‘•—…Š‹’—–•—†‡”–Š‹•…–Ǣ
‹˜Ǥ –Š‡•ƒ‹†”‡‰‹•–‡”‡†’‡”•‘‹•‹’‘••‡••‹‘‘ˆ‹˜‘‹…‡‘”‘–Š‡”’”‡•…”‹„‡††‘…—‡–•‡˜‹†‡…‹‰’ƒ›‡–‘ˆ
–ƒš—†‡”–Š‡‡š‹•–‹‰Žƒ™‹”‡•’‡…–‘ˆ‹’—–•Ǣƒ†
˜Ǥ •—…Š ‹˜‘‹…‡• ‘” ‘–Š‡” ’”‡•…”‹„‡† †‘…—‡–• ™‡”‡ ‹••—‡† ‘– ‡ƒ”Ž‹‡” –Šƒ –™‡Ž˜‡ ‘–Š• ‹‡†‹ƒ–‡Ž›
’”‡…‡†‹‰–Š‡ƒ’’‘‹–‡††ƒ›Ǥ
”‡‰‹•–‡”‡†’‡”•‘™Š‘Šƒ•’ƒ‹†–Š‡‡–”ƒŽ–ƒšƒ†–Š‡‹‘–‡””‹–‘”›–ƒš‘ƒ–”ƒ•ƒ…–‹‘…‘•‹†‡”‡†„›Š‹–‘
„‡ƒ‹–”ƒǦ–ƒ–‡•—’’Ž›ǡ„—–™Š‹…Š‹••—„•‡“—‡–Ž›Š‡Ž†–‘„‡ƒ‹–‡”Ǧ–ƒ–‡•—’’Ž›ǡ•ŠƒŽŽ„‡”‡ˆ—†‡†–Š‡ƒ‘—–‘ˆ
–ƒš‡••‘’ƒ‹†‹•—…Šƒ‡”ƒ†•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
—”–Š‡”ǡƒ”‡‰‹•–‡”‡†’‡”•‘™Š‘Šƒ•’ƒ‹†‹–‡‰”ƒ–‡†–ƒš‘ƒ–”ƒ•ƒ…–‹‘…‘•‹†‡”‡†„›Š‹–‘„‡ƒ‹–‡”Ǧ–ƒ–‡
•—’’Ž›ǡ„—–™Š‹…Š‹••—„•‡“—‡–Ž›Š‡Ž†–‘„‡ƒ‹–”ƒǦ–ƒ–‡•—’’Ž›ǡ•ŠƒŽŽ‘–„‡”‡“—‹”‡†–‘’ƒ›ƒ›‹–‡”‡•–‘–Š‡
ƒ‘—–‘ˆ–Š‡…‡–”ƒŽ–ƒšƒ†–Š‡‹‘–‡””‹–‘”›–ƒš’ƒ›ƒ„Ž‡Ǥ
Š‡”‡ƒ›ƒ‘—–‘ˆ–ƒšǡ‹–‡”‡•–‘”’‡ƒŽ–›‹•’ƒ›ƒ„Ž‡„›ƒ’‡”•‘–‘–Š‡
‘˜‡”‡–—†‡”ƒ›‘ˆ–Š‡’”‘˜‹•‹‘•
‘ˆ–Š‹•…–‘”–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”ƒ†™Š‹…Š”‡ƒ‹•—’ƒ‹†ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”‘ˆ…‡–”ƒŽ–ƒšǡ†—”‹‰–Š‡
…‘—”•‡‘ˆ”‡…‘˜‡”›‘ˆ•ƒ‹†–ƒšƒ””‡ƒ”•ǡƒ›”‡…‘˜‡”–Š‡ƒ‘—–ˆ”‘–Š‡•ƒ‹†’‡”•‘ƒ•‹ˆ‹–™‡”‡ƒƒ””‡ƒ”‘ˆ…‡–”ƒŽ
–ƒšƒ†…”‡†‹––Š‡ƒ‘—–•‘”‡…‘˜‡”‡†–‘–Š‡ƒ……‘—–‘ˆ–Š‡
‘˜‡”‡–—†‡”–Š‡ƒ’’”‘’”‹ƒ–‡Š‡ƒ†‘ˆ‹‘
–‡””‹–‘”›–ƒšǤ
Š‡”‡–Š‡ƒ‘—–”‡…‘˜‡”‡†‹•Ž‡••–Šƒ–Š‡ƒ‘—–†—‡–‘–Š‡
‘˜‡”‡–—†‡”–Š‹•…–ƒ†–Š‡‡–”ƒŽ
‘‘†•
ƒ†‡”˜‹…‡•ƒš…–ǡ–Š‡ƒ‘—––‘„‡…”‡†‹–‡†–‘–Š‡ƒ……‘—–‘ˆ–Š‡
‘˜‡”‡–•ŠƒŽŽ„‡‹’”‘’‘”–‹‘–‘–Š‡
ƒ‘—–†—‡ƒ•‹‘–‡””‹–‘”›–ƒšƒ†‡–”ƒŽ–ƒšǤ
ADVANCE RULING [SECTION 14 OF UTGST ACT, 2017]
ǮǮ†˜ƒ…‡—Ž‹‰ǯǯ‡ƒ•ƒ†‡…‹•‹‘’”‘˜‹†‡†„›–Š‡—–Š‘”‹–›‘”–Š‡’’‡ŽŽƒ–‡—–Š‘”‹–›–‘ƒƒ’’Ž‹…ƒ–‘ƒ––‡”•
‘”‘“—‡•–‹‘••’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋʹȌ‘ˆ•‡…–‹‘ͻ͹‘”•—„Ǧ•‡…–‹‘ȋͳȌ‘ˆ•‡…–‹‘ͳͲͲ‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†
‡”˜‹…‡•ƒš…–ǡ‹”‡Žƒ–‹‘–‘–Š‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š„‡‹‰—†‡”–ƒ‡‘”’”‘’‘•‡†–‘„‡—†‡”–ƒ‡
„›–Š‡ƒ’’Ž‹…ƒ–Ǥ
ǮǮ’’‡ŽŽƒ–‡—–Š‘”‹–›ǯǯ‡ƒ•–Š‡’’‡ŽŽƒ–‡—–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰…‘•–‹–—–‡†—†‡”•‡…–‹‘ͳ͸ǢDz’’Ž‹…ƒ–ǯǯ
‡ƒ•ƒ›’‡”•‘”‡‰‹•–‡”‡†‘”†‡•‹”‘—•‘ˆ‘„–ƒ‹‹‰”‡‰‹•–”ƒ–‹‘—†‡”–Š‹•…–ǢDz—–Š‘”‹–›dz‡ƒ•–Š‡ƒ—–Š‘”‹–›
ˆ‘”†˜ƒ…‡—Ž‹‰…‘•–‹–—–‡†—†‡”‡…–‹‘ͳͷǤ
Questions for which Advance Ruling can be sought?
†˜ƒ…‡—Ž‹‰…ƒ„‡•‘—‰Š–ˆ‘”–Š‡ˆ‘ŽŽ‘™‹‰“—‡•–‹‘•ǣ
Ȉ …Žƒ••‹ϐ‹…ƒ–‹‘‘ˆƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 785

Ȉ ƒ’’Ž‹…ƒ„‹Ž‹–›‘ˆƒ‘–‹ϐ‹…ƒ–‹‘‹••—‡†—†‡”’”‘˜‹•‹‘•‘ˆ–Š‡
…–ȋ•ȌǢ
Ȉ †‡–‡”‹ƒ–‹‘‘ˆ–‹‡ƒ†˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
Ȉ ƒ†‹••‹„‹Ž‹–›‘ˆ‹’—––ƒš…”‡†‹–‘ˆ–ƒš’ƒ‹†‘”†‡‡‡†–‘Šƒ˜‡„‡‡’ƒ‹†Ǣ
Ȉ †‡–‡”‹ƒ–‹‘‘ˆ–Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›–ƒš‘ƒ›‰‘‘†•‘”•‡”˜‹…‡•—†‡”–Š‡…–Ǣ
Ȉ ™Š‡–Š‡”ƒ’’Ž‹…ƒ–‹•”‡“—‹”‡†–‘„‡”‡‰‹•–‡”‡†—†‡”–Š‡…–Ǣ
Ȉ ™Š‡–Š‡” ƒ› ’ƒ”–‹…—Žƒ” –Š‹‰ †‘‡ „› –Š‡ ƒ’’Ž‹…ƒ– ™‹–Š ”‡•’‡…– –‘ ƒ› ‰‘‘†• ‘” •‡”˜‹…‡• ƒ‘—–• –‘ ‘”
”‡•—Ž–•‹ƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•ǡ™‹–Š‹–Š‡‡ƒ‹‰‘ˆ–Šƒ––‡”Ǥ
CONSTITUTION OF AUTHORITY FOR ADVANCE RULING [SECTION 15]
Š‡ ‡–”ƒŽ
‘˜‡”‡– •ŠƒŽŽǡ „› ‘–‹ϐ‹…ƒ–‹‘ǡ …‘•–‹–—–‡ ƒ —–Š‘”‹–› –‘ „‡ ‘™ ƒ• –Š‡ ȋƒ‡ ‘ˆ –Š‡ ‹‘
–‡””‹–‘”›Ȍ—–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰’”‘˜‹†‡†–Šƒ––Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹Žǡ‘–‹ˆ›ƒ›—–Š‘”‹–›Ž‘…ƒ–‡†‹ƒ›–ƒ–‡‘”ƒ›‘–Š‡”‹‘–‡””‹–‘”›–‘ƒ…–ƒ•–Š‡—–Š‘”‹–›ˆ‘”–Š‡’—”’‘•‡•
‘ˆ–Š‹•…–Ǥ
Š‡—–Š‘”‹–›•ŠƒŽŽ…‘•‹•–‘ˆǣ
‹Ǥ ‘‡‡„‡”ˆ”‘ƒ‘‰•––Š‡‘ˆϐ‹…‡”•‘ˆ…‡–”ƒŽ–ƒšǢƒ†
‹‹Ǥ ‘‡‡„‡”ˆ”‘ƒ‘‰•––Š‡‘ˆϐ‹…‡”•‘ˆ‹‘–‡””‹–‘”›–ƒšǡ–‘„‡ƒ’’‘‹–‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
Š‡“—ƒŽ‹ϐ‹…ƒ–‹‘•ǡ–Š‡‡–Š‘†‘ˆƒ’’‘‹–‡–‘ˆ–Š‡‡„‡”•ƒ†–Š‡–‡”•ƒ†…‘†‹–‹‘•‘ˆ–Š‡‹”•‡”˜‹…‡•ŠƒŽŽ
„‡•—…Šƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
CONSTITUTION OF APPELLATE AUTHORITY FOR ADVANCE RULING [SECTION 16]
Š‡‡–”ƒŽ
‘˜‡”‡–•ŠƒŽŽǡ„›‘–‹ϐ‹…ƒ–‹‘ǡ…‘•–‹–—–‡ƒ’’‡ŽŽƒ–‡—–Š‘”‹–›–‘„‡‘™ƒ•–Š‡ȋƒ‡‘ˆ–Š‡
‹‘–‡””‹–‘”›Ȍ’’‡ŽŽƒ–‡—–Š‘”‹–›ˆ‘”†˜ƒ…‡—Ž‹‰ˆ‘”
‘‘†•ƒ†‡”˜‹…‡•ƒšˆ‘”Š‡ƒ”‹‰ƒ’’‡ƒŽ•ƒ‰ƒ‹•––Š‡
ƒ†˜ƒ…‡”—Ž‹‰’”‘‘—…‡†„›–Š‡†˜ƒ…‡—Ž‹‰—–Š‘”‹–›Ǥ
Š‡’’‡ŽŽƒ–‡—–Š‘”‹–›•ŠƒŽŽ…‘•‹•–‘ˆǣ
‹Ǥ –Š‡Š‹‡ˆ‘‹••‹‘‡”‘ˆ…‡–”ƒŽ–ƒšƒ•†‡•‹‰ƒ–‡†„›–Š‡‘ƒ”†Ǣƒ†
‹‹Ǥ –Š‡‘‹••‹‘‡”‘ˆ‹‘–‡””‹–‘”›–ƒšŠƒ˜‹‰Œ—”‹•†‹…–‹‘‘˜‡”–Š‡ƒ’’Ž‹…ƒ–Ǥ
MISCELLANEOUS
—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–ƒ†–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”ǡ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•
ƒš…–ǡʹͲͳ͹”‡Žƒ–‹‰–‘Ȃ
ȋ‹Ȍ •…‘’‡‘ˆ•—’’Ž›Ǣ
ȋ‹‹Ȍ …‘’‘•‹–‹‘Ž‡˜›Ǣ
ȋ‹‹‹Ȍ …‘’‘•‹–‡•—’’Ž›ƒ†‹š‡†•—’’Ž›Ǣ
ȋ‹˜Ȍ –‹‡ƒ†˜ƒŽ—‡‘ˆ•—’’Ž›Ǣ
ȋ˜Ȍ ‹’—––ƒš…”‡†‹–Ǣ
ȋ˜‹Ȍ ”‡‰‹•–”ƒ–‹‘Ǣ
ȋ˜‹‹Ȍ –ƒš‹˜‘‹…‡ǡ…”‡†‹–ƒ††‡„‹–‘–‡•Ǣ
ȋ˜‹‹‹Ȍ ƒ……‘—–•ƒ†”‡…‘”†•Ǣ
ȋ‹šȌ ”‡–—”•Ǣ
ȋšȌ ’ƒ›‡–‘ˆ–ƒšǢ
ȋš‹Ȍ –ƒš†‡†—…–‹‘ƒ–•‘—”…‡Ǣ
ȋš‹‹Ȍ …‘ŽŽ‡…–‹‘‘ˆ–ƒšƒ–•‘—”…‡Ǣ
 786 Lesson 16 Ȉ EP-TL

ȋš‹‹‹Ȍ ƒ••‡••‡–Ǣ
ȋš‹˜Ȍ ”‡ˆ—†•Ǣ
ȋš˜Ȍ ƒ—†‹–Ǣ
ȋš˜‹Ȍ ‹•’‡…–‹‘ǡ•‡ƒ”…Šǡ•‡‹œ—”‡ƒ†ƒ””‡•–Ǣ
ȋš˜‹‹Ȍ †‡ƒ†•ƒ†”‡…‘˜‡”›Ǣ
ȋš˜‹‹‹Ȍ Ž‹ƒ„‹Ž‹–›–‘’ƒ›‹…‡”–ƒ‹…ƒ•‡•Ǣ
ȋš‹šȌ ƒ†˜ƒ…‡”—Ž‹‰Ǣ
ȋššȌ ƒ’’‡ƒŽ•ƒ†”‡˜‹•‹‘Ǣ
ȋšš‹Ȍ ’”‡•—’–‹‘ƒ•–‘†‘…—‡–•Ǣ
ȋšš‹‹Ȍ ‘ˆˆ‡…‡•ƒ†’‡ƒŽ–‹‡•Ǣ
ȋšš‹‹‹Ȍ Œ‘„™‘”Ǣ
ȋšš‹˜Ȍ ‡Ž‡…–”‘‹……‘‡”…‡Ǣ
ȋšš˜Ȍ •‡––Ž‡‡–‘ˆˆ—†•Ǣ
ȋšš˜‹Ȍ –”ƒ•‹–‹‘ƒŽ’”‘˜‹•‹‘•Ǣƒ†
ȋšš˜‹‹Ȍ ‹•…‡ŽŽƒ‡‘—•’”‘˜‹•‹‘•‹…Ž—†‹‰–Š‡’”‘˜‹•‹‘•”‡Žƒ–‹‰–‘–Š‡‹’‘•‹–‹‘‘ˆ‹–‡”‡•–ƒ†’‡ƒŽ–›ǡ•ŠƒŽŽ
mutatis mutandisƒ’’Ž›Ǥ
Š‡ƒ„‘˜‡’”‘˜‹•‹‘•ƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘
…–ƒŽ•‘Ǥ
Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘ǡƒ‡”—Ž‡•ˆ‘”…ƒ””›‹‰‘—–
–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–Ǥ
POWER TO MAKE RULES [SECTION 22]
‡…–‹‘ʹʹ‘ˆ–Š‡
…–ǡʹͲͳ͹Žƒ›•†‘™–Š‡’‘™‡”•‘ˆ‡–”ƒŽ
‘˜‡”‡––‘ƒ‡”—Ž‡•‘–Š‡”‡…‘‡†ƒ–‹‘•
‘ˆ–Š‡‘—…‹ŽǤŠ‡‡–”ƒŽ
‘˜‡”‡–ƒ›ƒ‡”—Ž‡•ˆ‘”ƒŽŽ‘”ƒ›‘ˆ–Š‡ƒ––‡”•™Š‹…Š„›–Š‹•…–ƒ”‡”‡“—‹”‡†
–‘„‡ǡ‘”ƒ›„‡ǡ’”‡•…”‹„‡†‘”‹”‡•’‡…–‘ˆ™Š‹…Š’”‘˜‹•‹‘•ƒ”‡–‘„‡‘”ƒ›„‡ƒ†‡„›”—Ž‡•Ǥ
Š‡’‘™‡”–‘ƒ‡”—Ž‡•…‘ˆ‡””‡†„›–Š‹••‡…–‹‘•ŠƒŽŽ‹…Ž—†‡–Š‡’‘™‡”–‘‰‹˜‡”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…––‘–Š‡”—Ž‡•
‘”ƒ›‘ˆ–Š‡ˆ”‘ƒ†ƒ–‡‘–‡ƒ”Ž‹‡”–Šƒ–Š‡†ƒ–‡‘™Š‹…Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–…‘‡‹–‘ˆ‘”…‡Ǥ
› ”—Ž‡• ƒ†‡ —†‡” •—„Ǧ•‡…–‹‘ ȋͳȌ ƒ› ’”‘˜‹†‡ –Šƒ– ƒ …‘–”ƒ˜‡–‹‘ –Š‡”‡‘ˆ •ŠƒŽŽ „‡ Ž‹ƒ„Ž‡ –‘ ƒ ƒš‹—
’‡ƒŽ–›‘ˆ–‡–Š‘—•ƒ†”—’‡‡•ȋ•ǤͳͲǡͲͲͲȌǤ
GENERAL POWER TO MAKE REGULATIONS [SECTION 23]
Š‡‘ƒ”†ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘ǡƒ‡”‡‰—Žƒ–‹‘•…‘•‹•–‡–™‹–Š–Š‹•…–ƒ†–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”–‘…ƒ””›
‘—––Š‡’—”’‘•‡•‘ˆ–Š‹•…–Ǥ
LAYING OF RULES, REGULATIONS AND NOTIFICATIONS [SECTION 24]
˜‡”›”—Ž‡ƒ†‡„›–Š‡‡–”ƒŽ
‘˜‡”‡–ǡ‡˜‡”›”‡‰—Žƒ–‹‘ƒ†‡„›–Š‡‘ƒ”†ƒ†‡˜‡”›‘–‹ϐ‹…ƒ–‹‘‹••—‡†„›–Š‡
‡–”ƒŽ
‘˜‡”‡–—†‡”–Š‹•…–ǡ•ŠƒŽŽ„‡Žƒ‹†ǡƒ••‘‘ƒ•ƒ›„‡ǡƒˆ–‡”‹–‹•ƒ†‡‘”‹••—‡†ǡ„‡ˆ‘”‡‡ƒ…Š‘—•‡‘ˆ
ƒ”Ž‹ƒ‡–ǡ™Š‹Ž‡‹–‹•‹•‡••‹‘ǡˆ‘”ƒ–‘–ƒŽ’‡”‹‘†‘ˆ–Š‹”–›†ƒ›•™Š‹…Šƒ›„‡…‘’”‹•‡†‹‘‡•‡••‹‘‘”‹–™‘
‘” ‘”‡ •—……‡••‹˜‡ •‡••‹‘•ǡ ƒ† ‹ˆǡ „‡ˆ‘”‡ –Š‡ ‡š’‹”› ‘ˆ –Š‡ •‡••‹‘ ‹‡†‹ƒ–‡Ž› ˆ‘ŽŽ‘™‹‰ –Š‡ •‡••‹‘ ‘” –Š‡
•—……‡••‹˜‡ •‡••‹‘• ƒˆ‘”‡•ƒ‹†ǡ „‘–Š ‘—•‡• ƒ‰”‡‡ ‹ ƒ‹‰ ƒ› ‘†‹ϐ‹…ƒ–‹‘ ‹ –Š‡ ”—Ž‡ ‘” ”‡‰—Žƒ–‹‘ ‘” ‹ –Š‡
‘–‹ϐ‹…ƒ–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‘”„‘–Š‘—•‡•ƒ‰”‡‡–Šƒ––Š‡”—Ž‡‘””‡‰—Žƒ–‹‘‘”–Š‡‘–‹ϐ‹…ƒ–‹‘•Š‘—Ž†‘–„‡
ƒ†‡ǡ–Š‡”—Ž‡‘””‡‰—Žƒ–‹‘‘”‘–‹ϐ‹…ƒ–‹‘ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ•ŠƒŽŽ–Š‡”‡ƒˆ–‡”Šƒ˜‡‡ˆˆ‡…–‘Ž›‹•—…Š‘†‹ϐ‹‡†
ˆ‘”‘”„‡‘ˆ‘‡ˆˆ‡…–ǡƒ•–Š‡…ƒ•‡ƒ›„‡Ǣ•‘ǡŠ‘™‡˜‡”ǡ–Šƒ–ƒ›•—…Š‘†‹ˆ‹…ƒ–‹‘‘”ƒ—Ž‡–•ŠƒŽŽ„‡™‹–Š‘—–
’”‡Œ—†‹…‡–‘–Š‡˜ƒŽ‹†‹–›‘ˆƒ›–Š‹‰’”‡˜‹‘—•Ž›†‘‡—†‡”–Šƒ–”—Ž‡‘””‡‰—Žƒ–‹‘‘”‘–‹ϐ‹…ƒ–‹‘ǡƒ•–Š‡…ƒ•‡
ƒ›„‡Ǥ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 787

POWER TO ISSUE INSTRUCTIONS OR DIRECTIONS [SECTION 25]

‘” –Š‡ ’—”’‘•‡ ‘ˆ —‹ˆ‘”‹–› ‹ –Š‡ ‹’Ž‡‡–ƒ–‹‘ ‘ˆ –Š‹• …–ǡ –Š‡ ‘‹••‹‘‡” ƒ›ǡ ‹••—‡ •—…Š ‘”†‡”•ǡ
‹•–”—…–‹‘•‘”†‹”‡…–‹‘•–‘–Š‡‹‘‡””‹–‘”›–ƒš‘ˆϐ‹…‡”•ƒ•Š‡ƒ›†‡‡ϐ‹–ǡƒ†–Š‡”‡—’‘ƒŽŽ•—…Š‘ˆϐ‹…‡”•ƒ†
ƒŽŽ‘–Š‡”’‡”•‘•‡’Ž‘›‡†‹–Š‡‹’Ž‡‡–ƒ–‹‘‘ˆ–Š‹•…–•ŠƒŽŽ‘„•‡”˜‡ƒ†ˆ‘ŽŽ‘™•—…Š‘”†‡”•ǡ‹•–”—…–‹‘•‘”
†‹”‡…–‹‘•Ǥ
REMOVAL OF DIFFICULTIES [SECTION 26]
ˆ ƒ› †‹ˆϐ‹…—Ž–› ƒ”‹•‡• ‹ ‰‹˜‹‰ ‡ˆˆ‡…– –‘ ƒ› ’”‘˜‹•‹‘• ‘ˆ –Š‹• …–ǡ –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ›ǡ ‘ –Š‡
”‡…‘‡†ƒ–‹‘• ‘ˆ –Š‡ ‘—…‹Žǡ „› ƒ ‰‡‡”ƒŽ ‘” ƒ •’‡…‹ƒŽ ‘”†‡” ’—„Ž‹•Š‡† ‹ –Š‡ ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ ƒ‡ •—…Š
’”‘˜‹•‹‘•‘–‹…‘•‹•–‡–™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–‘”–Š‡”—Ž‡•‘””‡‰—Žƒ–‹‘•ƒ†‡–Š‡”‡—†‡”ǡƒ•ƒ›„‡
‡…‡••ƒ”›‘”‡š’‡†‹‡–ˆ‘”–Š‡’—”’‘•‡‘ˆ”‡‘˜‹‰–Š‡•ƒ‹††‹ˆϐ‹…—Ž–›Ǥ‘™‡˜‡”ǡ‘•—…Š‘”†‡”•ŠƒŽŽ„‡ƒ†‡ƒˆ–‡”
–Š‡‡š’‹”›‘ˆƒ’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•ˆ”‘–Š‡†ƒ–‡‘ˆ…‘‡…‡‡–‘ˆ–Š‹•…–Ǥ
˜‡”›‘”†‡”ƒ†‡—†‡”–Š‹••‡…–‹‘•ŠƒŽŽ„‡Žƒ‹†ǡƒ••‘‘ƒ•ƒ›„‡ǡƒˆ–‡”‹–‹•ƒ†‡ǡ„‡ˆ‘”‡‡ƒ…Š‘—•‡‘ˆ
ƒ”Ž‹ƒ‡–Ǥ
THE GOODS AND SERVICES TAX (COMPENSATION TO STATES) ACT, 2017
Background
Š‡
‘—…‹Ž‹‹–•ͳͲ–Š‡‡–‹‰Š‡Ž†‘ͳͺ–Š ‡„”—ƒ”›ǡʹͲͳ͹ƒ’’”‘˜‡†–Š‡
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ
‹ŽŽ–Šƒ–’”‘˜‹†‡•ˆ‘”–Š‡…‘’‡•ƒ–‹‘‘ˆŽ‘••ƒ”‹•‹‰‘—–‘ˆ‹–”‘†—…–‹‘‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒš–‘•–ƒ–‡•
‹†‹ƒǤŠ‡…–™Š‹…Š’”‘˜‹†‡•ˆ‘”…‘’‡•ƒ–‹‘–‘–Š‡•–ƒ–‡•ˆ‘”–Š‡Ž‘••‘ˆ”‡˜‡—‡ƒ”‹•‹‰‘ƒ……‘—–‘ˆ
‹’Ž‡‡–ƒ–‹‘ ‘ˆ
‘‘†• ƒ† ‡”˜‹…‡• ƒš ˆ‘” ƒ ’‡”‹‘† ‘ˆ ˆ‹˜‡ ›‡ƒ”• ‹ ’—”•—ƒ…‡ ‘ˆ –Š‡ ’”‘˜‹•‹‘• ‘ˆ –Š‡
‘•–‹–—–‹‘ ȋ‡ —†”‡† ƒ† ‹”•– ‡†‡–Ȍ …–ǡ ʹͲͳ͸ǡ …ƒ‡ ‹ ˆ‘”…‡ ƒ• –Š‡
‘‘†• Ƭ ‡”˜‹…‡• ƒš
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹Ǥ
Š‡‹‘
‘˜‡”‡–’”‡•‡–‡†–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ‹ŽŽǡʹͲͳ͹‹‘ƒ„Šƒ‘
ʹ͹–Šƒ”…ŠǡʹͲͳ͹ƒ†–Š‡•ƒ‡Šƒ•„‡‡’ƒ••‡†„›‘ƒ„Šƒ‘ʹͻ–Šƒ”…ŠǡʹͲͳ͹ǤŠ‡ƒŒ›ƒƒ„Šƒ’ƒ••‡†–Š‡„‹ŽŽ
‘͸–Š’”‹ŽǡʹͲͳ͹ƒ†™ƒ•ƒ••‡–‡†„›–Š‡”‡•‹†‡–‘ͳʹ–Š’”‹ŽǡʹͲͳ͹Ǥ
Š‹•…–ƒ›„‡…ƒŽŽ‡†–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹Ǥ–‡š–‡†•–‘–Š‡™Š‘Ž‡‘ˆ
†‹ƒǤ
SALIENT FEATURES OF GST (COMPENSATION TO STATES) ACT, 2017
Š‡
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹’”‘˜‹†‡•ˆ‘”–Š‡ƒ‡”‘ˆƒ•…‡”–ƒ‹‹‰–Š‡ƒ‘—–‘ˆ…‘’‡•ƒ–‹‘
–Šƒ–•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡–‘•–ƒ–‡•†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•„›–Š‡‡–”‡‘ƒ……‘—–‘ˆ”‡˜‡—‡Ž‘••
ƒ––”‹„—–ƒ„Ž‡–‘Ž‡˜›‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒš‹†‹ƒǤ–‹˜‘Ž˜‡•–Š‡ˆ‘ŽŽ‘™‹‰•–‡’•ǣ

Identifying
Ascertaining Projected Computation of Release of
the revenue
the base year revenue compensation compensation
of base year

Š‡ …‘’‡•ƒ–‹‘ •ŠƒŽŽ „‡ ‡– ‘—– ˆ”‘ …‘’‡•ƒ–‹‘ …‡•• ˆ‘” ™Š‹…Š –Š‡ ’”‘˜‹•‹‘• ‹ ”‡Žƒ–‹‘ –‘ …‘ŽŽ‡…–‹‘ǡ
’ƒ›‡–”‡–—”ǡ”‡ˆ—†‡–…ǤŠƒ˜‡„‡‡’”‘˜‹†‡†ˆ‘”‹–Š‡
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹Ǥ
 788 Lesson 16 Ȉ EP-TL

Objectives of the Act:

ͳǤ –’”‘˜‹†‡•ˆ‘”–Š‡…‘’‡•ƒ–‹‘‘ˆŽ‘••–‘–Š‡•–ƒ–‡•ƒ”‹•‹‰†—‡–‘‹’Ž‡‡–ƒ–‹‘‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒš
‹†‹ƒǤ
ʹǤ Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲͳͷǦͳ͸•ŠƒŽŽ„‡–ƒ‡ƒ•„ƒ•‡›‡ƒ”ˆ‘”–Š‡’—”’‘•‡‘ˆ…ƒŽ…—Žƒ–‹‰…‘’‡•ƒ–‹‘ƒ‘—–
’ƒ›ƒ„Ž‡–‘–Š‡•–ƒ–‡•Ǥ
͵Ǥ Š‡”‡˜‡—‡–‘„‡…‘’‡•ƒ–‡†…‘•‹•–•‘ˆ”‡˜‡—‡•ˆ”‘ƒŽŽ–Š‡–ƒš‡•–Šƒ–ƒ”‡Ž‡˜‹‡†„›–Š‡•–ƒ–‡•™Š‹…Š
Šƒ˜‡•—„•—‡†—†‡”
‘‘†•ƒ†‡”˜‹…‡•ƒšǡƒ•ƒ—†‹–‡†„›–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”
‡‡”ƒŽ‘ˆ†‹ƒǤ
ͶǤ Š‡’”‘Œ‡…–‡†‰”‘™–Š”ƒ–‡‘ˆ”‡˜‡—‡†—”‹‰–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ„‡ͳͶΨǤ
ͷǤ Š‡…‘’‡•ƒ–‹‘•ŠƒŽŽ„‡”‡Ž‡ƒ•‡†ƒ––Š‡‡†‘ˆ‡˜‡”›–™‘‘–Š•’‡”‹‘†‘ƒ’”‘˜‹•‹‘ƒŽ„ƒ•‹•ƒ†ϐ‹ƒŽ
ƒ†Œ—•–‡–•ŠƒŽŽ„‡ƒ†‡ƒˆ–‡”‰‡––‹‰ƒ—†‹–‡†ƒ……‘—–•‘ˆ–Š‡›‡ƒ”ˆ”‘–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”
‡‡”ƒŽ
‘ˆ†‹ƒǤ
͸Ǥ …ƒ•‡‘ˆ‡Ž‡˜‡•’‡…‹ƒŽ…ƒ–‡‰‘”›•–ƒ–‡•”‡ˆ‡””‡†–‘‹”–‹…Ž‡ʹ͹ͻ‘ˆ–Š‡‘•–‹–—–‹‘ǡ–Š‡”‡˜‡—‡ˆ‘”‰‘‡
‘ƒ……‘—–‘ˆ‡š‡’–‹‘‘ˆ–ƒš‡•‰”ƒ–‡†•ŠƒŽŽ„‡…‘—–‡†–‘™ƒ”†•–Š‡†‡ϐ‹‹–‹‘‘ˆ‡˜‡—‡ˆ‘”–Š‡„ƒ•‡›‡ƒ”
ʹͲͳͷǦͳ͸ˆ‘”…ƒŽ…—Žƒ–‹‰…‘’‡•ƒ–‹‘Ǥ
͹Ǥ Š‡”‡˜‡—‡•‘ˆ–Š‡•–ƒ–‡•–Šƒ–™‡”‡‘–…”‡†‹–‡†–‘–Š‡…‘•‘Ž‹†ƒ–‡†ˆ—†‘ˆ•–ƒ–‡•‰‘˜‡”‡–„—–™‡”‡
†‹”‡…–Ž›…‘ŽŽ‡…–‡†„›Dzƒ†‹dz‘”Dz—‹…‹’ƒŽ‹–›dz™‘—Ž†ƒŽ•‘„‡‹…Ž—†‡†‹–Š‡†‡ϐ‹‹–‹‘‘ˆ”‡˜‡—‡‹ˆ–Š‡•‡
™‡”‡•—„•—‡†‹–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒšǤ
ͺǤ ‘ ‰‡‡”ƒ–‡ ”‡˜‡—‡ –‘ …‘’‡•ƒ–‡ •–ƒ–‡• ˆ‘” ϐ‹˜‡ ›‡ƒ”• ˆ‘” Ž‘•• •—ˆˆ‡”‡† „› –Š‡ •–ƒ–‡• ‘ ƒ……‘—– ‘ˆ
‹’Ž‡‡–ƒ–‹‘‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒšǡ‹•„›Ž‡˜›‘ˆƒ…‡••‘•—…Š‰‘‘†•ƒ•”‡…‘‡†‡†„›–Š‡

‘—…‹Ž‘˜‡”ƒ†ƒ„‘˜‡–Š‡
”ƒ–‡‘–Šƒ–‹–‡Ǥ
ͻǤ Š‡’”‘…‡‡†•‘ˆ–Š‡…‡•••ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡ˆ—†…ƒŽŽ‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš‘’‡•ƒ–‹‘ —†ƒ†
ƒŽŽ–Š‡…‘’‡•ƒ–‹‘’ƒ›ƒ„Ž‡–‘–Š‡•–ƒ–‡•ƒ•
…‘’‡•ƒ–‹‘•ŠƒŽŽ„‡’ƒ‹†ˆ”‘–Š‹•ˆ—†ǤŠ‡„ƒŽƒ…‡‹ˆ
ƒ›Ž‡ˆ–‘—–‹–Š‡
…‘’‡•ƒ–‹‘ˆ—†ƒˆ–‡”ϐ‹˜‡›‡ƒ”•ŠƒŽŽ„‡‡“—ƒŽŽ›•Šƒ”‡†„‡–™‡‡–Š‡‡–”‡ƒ†–Š‡
•–ƒ–‡•Ǥ
‘‡†‡ϐ‹‹–‹‘•’”‡•…”‹„‡†‹‡…–‹‘ʹ‘ˆ–Š‡…–ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ
Section 2 ǣ–Š‹•…–ǡ—Ž‡••–Š‡…‘–‡š–‘–Š‡”™‹•‡”‡“—‹”‡•ǣ
ƒȌ Dz…‡–”ƒŽ –ƒšdz ‡ƒ• –Š‡ …‡–”ƒŽ ‰‘‘†• ƒ† •‡”˜‹…‡• –ƒš Ž‡˜‹‡† ƒ† …‘ŽŽ‡…–‡† —†‡” –Š‡ ‡–”ƒŽ
‘‘†• ƒ†
‡”˜‹…‡•ƒš…–Ǣ
„Ȍ Dz‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–dz‡ƒ•–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹Ǣ
…Ȍ Dz…‡••dz‡ƒ•–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒš…‘’‡•ƒ–‹‘…‡••Ž‡˜‹‡†—†‡”•‡…–‹‘ͺǢ
†Ȍ Dz…‘’‡•ƒ–‹‘dz‡ƒ•ƒƒ‘—–ǡ‹–Š‡ˆ‘”‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•–ƒš…‘’‡•ƒ–‹‘ǡƒ•†‡–‡”‹‡†—†‡”
•‡…–‹‘͹Ǣ
‡Ȍ Dz‘—…‹Ždz‡ƒ•–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒš‘—…‹Ž…‘•–‹–—–‡†—†‡”–Š‡’”‘˜‹•‹‘•‘ˆƒ”–‹…Ž‡ʹ͹ͻ‘ˆ–Š‡
‘•–‹–—–‹‘Ǣ
ˆȌ Dz —†dz‡ƒ•–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒš‘’‡•ƒ–‹‘ —†”‡ˆ‡””‡†–‘‹•‡…–‹‘ͳͲǢ
‰Ȍ Dz‹’—––ƒšdz‹”‡Žƒ–‹‘–‘ƒ–ƒšƒ„Ž‡’‡”•‘ǡ‡ƒ•ǡ
‹Ǥ …‡••…Šƒ”‰‡†‘ƒ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ†‡–‘Š‹Ǣ
‹‹Ǥ …‡••…Šƒ”‰‡†‘‹’‘”–‘ˆ‰‘‘†•ƒ†‹…Ž—†‡•–Š‡…‡••’ƒ›ƒ„Ž‡‘”‡˜‡”•‡…Šƒ”‰‡„ƒ•‹•Ǣ
ŠȌ Dz–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–dz‡ƒ•–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹Ǣ
‹Ȍ Dz‹–‡‰”ƒ–‡†–ƒšdz‡ƒ•–Š‡‹–‡‰”ƒ–‡†‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšŽ‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†—†‡”–Š‡–‡‰”ƒ–‡†
‘‘†•
ƒ†‡”˜‹…‡•ƒš…–Ǣ
ŒȌ Dz’”‡•…”‹„‡†dz‡ƒ•’”‡•…”‹„‡†„›”—Ž‡•ƒ†‡ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ—†‡”–Š‹•…–Ǣ
Ȍ Dz’”‘Œ‡…–‡†‰”‘™–Š”ƒ–‡dz‡ƒ•–Š‡”ƒ–‡‘ˆ‰”‘™–Š’”‘Œ‡…–‡†ˆ‘”–Š‡–”ƒ•‹–‹‘’‡”‹‘†ƒ•’‡”•‡…–‹‘͵Ǣ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 789

ŽȌ Dz…Š‡†—Ž‡dz‡ƒ•–Š‡…Š‡†—Ž‡ƒ’’‡†‡†–‘–Š‹•…–Ǣ
Ȍ Dz–ƒ–‡dz‡ƒ•ǡ
‹Ǥ ˆ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘•͵ǡͶǡͷǡ͸ƒ†͹–Š‡–ƒ–‡•ƒ•†‡ϐ‹‡†—†‡”–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•
ƒš…–Ǣƒ†
‹‹Ǥ ˆ‘”–Š‡’—”’‘•‡•‘ˆ•‡…–‹‘•ͺǡͻǡͳͲǡͳͳǡͳʹǡͳ͵ƒ†ͳͶ–Š‡–ƒ–‡•ƒ•†‡ϐ‹‡†—†‡”–Š‡‡–”ƒŽ
‘‘†•
ƒ† ‡”˜‹…‡• ƒš …– ƒ† –Š‡ ‹‘ –‡””‹–‘”‹‡• ƒ• †‡ϐ‹‡† —†‡” –Š‡ ‹‘ ‡””‹–‘”‹‡•
‘‘†• ƒ†
‡”˜‹…‡•ƒš…–Ǣ
Ȍ Dz–ƒ–‡–ƒšdz‡ƒ•–Š‡–ƒ–‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšŽ‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†—†‡”–Š‡”‡•’‡…–‹˜‡–ƒ–‡
‘‘†•ƒ†
‡”˜‹…‡•ƒš…–Ǣ
‘Ȍ Dz–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–dz‡ƒ•–Š‡Žƒ™–‘„‡ƒ†‡„›–Š‡–ƒ–‡‡‰‹•Žƒ–—”‡ˆ‘”Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘
‘ˆ–ƒš„›–Š‡…‘…‡”‡†–ƒ–‡‘•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
’Ȍ Dz–ƒšƒ„Ž‡•—’’Ž›ǯǯ‡ƒ•ƒ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™Š‹…Š‹•…Šƒ”‰‡ƒ„Ž‡–‘–Š‡…‡••—†‡”–Š‹•…–Ǣ
“Ȍ Dz–”ƒ•‹–‹‘†ƒ–‡dz•ŠƒŽŽ‡ƒǡ‹”‡•’‡…–‘ˆƒ›–ƒ–‡ǡ–Š‡†ƒ–‡‘™Š‹…Š–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–
‘ˆ–Š‡…‘…‡”‡†–ƒ–‡…‘‡•‹–‘ˆ‘”…‡Ǣ
”Ȍ Dz–”ƒ•‹–‹‘’‡”‹‘†dz‡ƒ•ƒ’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•ˆ”‘–Š‡–”ƒ•‹–‹‘†ƒ–‡Ǣƒ†
•Ȍ Dz‹‘‡””‹–‘”‹‡•
‘‘†•ƒ†‡”˜‹…‡•ƒš…–dz‡ƒ•–Š‡‹‘‡””‹–‘”‹‡•Ǥ
Š‡™‘”†•ƒ†‡š’”‡••‹‘•—•‡†ƒ†‘–†‡ϐ‹‡†‹–Š‹•…–„—–†‡ϐ‹‡†‹–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–
ƒ†–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–•ŠƒŽŽŠƒ˜‡–Š‡‡ƒ‹‰•”‡•’‡…–‹˜‡Ž›ƒ••‹‰‡†–‘–Š‡‹–Š‘•‡…–•Ǥ
PROJECTED GROWTH RATE [SECTION 3]
Š‡’”‘Œ‡…–‡†‘‹ƒŽ‰”‘™–Š”ƒ–‡‘ˆ”‡˜‡—‡•—„•—‡†ˆ‘”ƒ–ƒ–‡†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ„‡ˆ‘—”–‡‡
’‡”…‡–ȋͳͶΨȌ’‡”ƒ—Ǥ
BASE YEAR [SECTION 4]
‘”–Š‡’—”’‘•‡‘ˆ…ƒŽ…—Žƒ–‹‰–Š‡…‘’‡•ƒ–‹‘ƒ‘—–’ƒ›ƒ„Ž‡‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†ǡ
–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”‡†‹‰͵ͳ•–ƒ”…ŠǡʹͲͳ͸ǡ•ŠƒŽŽ„‡–ƒ‡ƒ•–Š‡„ƒ•‡›‡ƒ”ǤŠ—•ǡ–Š‡„ƒ•‡›‡ƒ”•ŠƒŽŽ„‡ ‹ƒ…‹ƒŽ
‡ƒ”ʹͲͳͷǦͳ͸Ǥ
BASE YEAR REVENUE [SECTION 5]
‡…–‹‘ͷȋͳȌƒ†ƒ–‡•–Šƒ–•—„Œ‡…––‘–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘•ȋʹȌǡȋ͵ȌǡȋͶȌǡȋͷȌƒ†ȋ͸Ȍǡ–Š‡„ƒ•‡›‡ƒ””‡˜‡—‡
ˆ‘” ƒ –ƒ–‡ •ŠƒŽŽ „‡ –Š‡ •— ‘ˆ –Š‡ ”‡˜‡—‡ …‘ŽŽ‡…–‡† „› –Š‡ –ƒ–‡ ƒ† –Š‡ Ž‘…ƒŽ „‘†‹‡• †—”‹‰ –Š‡ „ƒ•‡ ›‡ƒ”ǡ ‘
ƒ……‘—–‘ˆ–Š‡–ƒš‡•Ž‡˜‹‡†„›–Š‡”‡•’‡…–‹˜‡–ƒ–‡‘”‹‘ƒ†‡–‘ˆ”‡ˆ—†•ǡ™‹–Š”‡•’‡…––‘–Š‡ˆ‘ŽŽ‘™‹‰–ƒš‡•ǡ
‹’‘•‡†„›–Š‡”‡•’‡…–‹˜‡–ƒ–‡‘”‹‘ǡ™Š‹…Šƒ”‡•—„•—‡†‹–‘
ǣ
ƒȌ –Š‡ƒŽ—‡††‡†ƒšǮǯǡ•ƒŽ‡•–ƒšǡ’—”…Šƒ•‡–ƒšǡ–ƒš…‘ŽŽ‡…–‡†‘™‘”•…‘–”ƒ…–ǡ‘”ƒ›‘–Š‡”–ƒšŽ‡˜‹‡†„›
–Š‡ …‘…‡”‡† –ƒ–‡ —†‡” –Š‡ ‡”•–™Š‹Ž‡ ‡–”› ͷͶ ‘ˆ ‹•–Ǧ ȋ–ƒ–‡ ‹•–Ȍ ‘ˆ –Š‡ ‡˜‡–Š …Š‡†—Ž‡ –‘ –Š‡
‘•–‹–—–‹‘Ǣ
„Ȍ –Š‡…‡–”ƒŽ•ƒŽ‡•–ƒšǮǯŽ‡˜‹‡†—†‡”–Š‡‡–”ƒŽƒŽ‡•ƒš…–ǡͳͻͷ͸ȋ͹Ͷ‘ˆͳͻͷ͸ȌǢ
…Ȍ –Š‡‡–”›–ƒšǡ‘…–”‘‹ǡŽ‘…ƒŽ„‘†›–ƒš‘”ƒ›‘–Š‡”–ƒšŽ‡˜‹‡†„›–Š‡…‘…‡”‡†–ƒ–‡—†‡”–Š‡‡”•–™Š‹Ž‡‡–”›
ͷʹ‘ˆ‹•–Ǧȋ–ƒ–‡‹•–Ȍ‘ˆ–Š‡‡˜‡–Š…Š‡†—Ž‡–‘–Š‡‘•–‹–—–‹‘Ǣ
†Ȍ —š—”‹‡•–ƒšǡ‡–‡”–ƒ‹‡–•–ƒšǡƒ—•‡‡–•ǡ„‡––‹‰ƒ†‰ƒ„Ž‹‰‘”ƒ›‘–Š‡”–ƒšŽ‡˜‹‡†„›–Š‡…‘…‡”‡†
–ƒ–‡—†‡”–Š‡‡”•–™Š‹Ž‡‡–”›͸ʹ‘ˆ‹•–Ǧȋ–ƒ–‡‹•–Ȍ‘ˆ–Š‡‡˜‡–Š…Š‡†—Ž‡–‘–Š‡…‘•–‹–—–‹‘Ǣ
‡Ȍ †˜‡”–‹•‡‡––ƒš‘”ƒ›‘–Š‡”–ƒšŽ‡˜‹‡†„›–Š‡…‘…‡”‡†–ƒ–‡—†‡”–Š‡‡”•–™Š‹Ž‡‡–”›ͷͷ‘ˆ‹•–Ǧȋ–ƒ–‡
‹•–Ȍ‘ˆ–Š‡‡˜‡–Š…Š‡†—Ž‡–‘–Š‡‘•–‹–—–‹‘Ǣ
ˆȌ –Š‡†—–‹‡•‘ˆ‡š…‹•‡‘‡†‹…‹ƒŽƒ†–‘‹Ž‡–’”‡’ƒ”ƒ–‹‘•Ž‡˜‹‡†„›–Š‡‹‘„—–…‘ŽŽ‡…–‡†ƒ†”‡–ƒ‹‡†„›–Š‡
…‘…‡”‡†–ƒ–‡
‘˜‡”‡–—†‡”–Š‡‡”•–™Š‹Ž‡ƒ”–‹…Ž‡ʹ͸ͺ‘ˆ–Š‡‘•–‹–—–‹‘Ǣ
‰Ȍ ƒ› …‡•• ‘” •—”…Šƒ”‰‡ ‘” ˆ‡‡ Ž‡˜‹ƒ„Ž‡ —†‡” ‡–”› ͸͸ ”‡ƒ† ™‹–Š ‡–”‹‡• ͷʹǡ ͷͶǡ ͷͷ ƒ† ͸ʹ ‘ˆ ‹•–Ǧ ‘ˆ –Š‡
 790 Lesson 16 Ȉ EP-TL

‡˜‡–Š…Š‡†—Ž‡–‘–Š‡‘•–‹–—–‹‘„›–Š‡–ƒ–‡
‘˜‡”‡–—†‡”ƒ›…–‘–‹ϐ‹‡†—†‡”•—„Ǧ•‡…–‹‘ȋͶȌǡ
’”‹‘”–‘–Š‡…‘‡…‡‡–‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘•–‹–—–‹‘ȋ‡—†”‡†ƒ† ‹”•–‡†‡–Ȍ…–ǡ
ʹͲͳ͸Ǥ
Š‡ˆ‘ŽŽ‘™‹‰ƒ‘—–••ŠƒŽŽ‘–„‡‹…Ž—†‡†‹–Š‡”‡˜‡—‡…‘ŽŽ‡…–‡††—”‹‰–Š‡„ƒ•‡›‡ƒ”‹ƒ–ƒ–‡ǡ‡–‘ˆ”‡ˆ—†•ǡ
‹–Š‡…ƒŽ…—Žƒ–‹‘‘ˆ–Š‡„ƒ•‡›‡ƒ””‡˜‡—‡ˆ‘”–Šƒ––ƒ–‡ǣ
ƒȌ ƒ› –ƒš‡• Ž‡˜‹‡† —†‡” ƒ› …– ‡ƒ…–‡† —†‡” –Š‡ ‡”•–™Š‹Ž‡ ‡–”› ͷͶ ‘ˆ ‹•–Ǧ ȋ–ƒ–‡ ‹•–Ȍ ‘ˆ –Š‡ ‡˜‡–Š
…Š‡†—Ž‡–‘–Š‡‘•–‹–—–‹‘ǡ’”‹‘”–‘–Š‡…‘‹‰‹–‘ˆ‘”…‡‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘•–‹–—–‹‘ȋ‡—†”‡†
ƒ† ‹”•–‡†‡–Ȍ…–ǡʹͲͳ͸ǡ‘–Š‡•ƒŽ‡‘”’—”…Šƒ•‡‘ˆ’‡–”‘Ž‡—…”—†‡ǡŠ‹‰Š•’‡‡††‹‡•‡Žǡ‘–‘”•’‹”‹–
ȋ…‘‘Ž›‘™ƒ•’‡–”‘ŽȌǡƒ–—”ƒŽ‰ƒ•ǡƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡Žƒ†ƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘Ǣ
„Ȍ –ƒš Ž‡˜‹‡† —†‡” –Š‡ ‡–”ƒŽ ƒŽ‡• ƒš …–ǡ ͳͻͷ͸ǡ ‘ –Š‡ •ƒŽ‡ ‘” ’—”…Šƒ•‡ ‘ˆ ’‡–”‘Ž‡— …”—†‡ǡ Š‹‰Š •’‡‡†
†‹‡•‡Žǡ‘–‘”•’‹”‹–ȋ…‘‘Ž›‘™ƒ•’‡–”‘ŽȌǡƒ–—”ƒŽ‰ƒ•ǡƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡Žƒ†ƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”
Š—ƒ…‘•—’–‹‘Ǣ
…Ȍ ƒ›…‡••‹’‘•‡†„›–Š‡–ƒ–‡
‘˜‡”‡–‘–Š‡•ƒŽ‡‘”’—”…Šƒ•‡‘ˆ’‡–”‘Ž‡—…”—†‡ǡŠ‹‰Š•’‡‡††‹‡•‡Žǡ
‘–‘”•’‹”‹–ȋ…‘‘Ž›‘™ƒ•’‡–”‘ŽȌǡƒ–—”ƒŽ‰ƒ•ǡƒ˜‹ƒ–‹‘–—”„‹‡ˆ—‡Žƒ†ƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ
…‘•—’–‹‘Ǣƒ†
†Ȍ –Š‡ ‡–‡”–ƒ‹‡– –ƒš Ž‡˜‹‡† „› –Š‡ –ƒ–‡ „—– …‘ŽŽ‡…–‡† „› Ž‘…ƒŽ „‘†‹‡•ǡ —†‡” ƒ› …– ‡ƒ…–‡† —†‡” –Š‡
‡”•–™Š‹Ž‡‡–”›͸ʹ‘ˆ‹•–Ǧȋ–ƒ–‡‹•–Ȍ‘ˆ–Š‡‡˜‡–Š…Š‡†—Ž‡–‘–Š‡‘•–‹–—–‹‘ǡ’”‹‘”–‘…‘‹‰‹–‘ˆ‘”…‡
‘ˆ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‘•–‹–—–‹‘ȋ‡—†”‡†ƒ† ‹”•–‡†‡–Ȍ…–ǡʹͲͳ͸Ǥ
Š‡„ƒ•‡›‡ƒ””‡˜‡—‡•ŠƒŽŽ‹…Ž—†‡–Š‡ƒ‘—–‘ˆ–ƒš…‘ŽŽ‡…–‡†‘•ƒŽ‡‘ˆ•‡”˜‹…‡•„›–Š‡•ƒ‹†–ƒ–‡
‘˜‡”‡–
†—”‹‰–Š‡„ƒ•‡›‡ƒ”‹”‡•’‡…–‘ˆ–Š‡–ƒ–‡‘ˆ ƒ—ƒ†ƒ•Š‹”Ǥ
Ž•‘ǡ‹”‡•’‡…–‘ˆ–Š‡–ƒ–‡•‡–‹‘‡†‹•—„Ǧ…Žƒ—•‡ȋ‰Ȍ‘ˆ…Žƒ—•‡ȋͶȌ‘ˆƒ”–‹…Ž‡ʹ͹ͻ‘ˆ–Š‡‘•–‹–—–‹‘ǡ–Š‡ƒ‘—–
‘ˆ ”‡˜‡—‡ ˆ‘”‡‰‘‡ ‘ ƒ……‘—– ‘ˆ ‡š‡’–‹‘• ‘” ”‡‹••‹‘ ‰‹˜‡ „› –Š‡ •ƒ‹† –ƒ–‡
‘˜‡”‡–• –‘ ’”‘‘–‡
‹†—•–”‹ƒŽ‹˜‡•–‡–‹–Š‡–ƒ–‡ǡ™‹–Š”‡•’‡…––‘•—…Š•’‡…‹ϐ‹…–ƒš‡•”‡ˆ‡””‡†–‘‹•—„Ǧ•‡…–‹‘ȋͳȌǡ•ŠƒŽŽ„‡‹…Ž—†‡†
‹–Š‡–‘–ƒŽ„ƒ•‡›‡ƒ””‡˜‡—‡‘ˆ–Š‡–ƒ–‡ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
Š‡„ƒ•‡›‡ƒ””‡˜‡—‡•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†ƒ•‡–‹‘‡†ƒ„‘˜‡ƒ†‘–Š‡„ƒ•‹•‘ˆ–Š‡ϐ‹‰—”‡•‘ˆ”‡˜‡—‡…‘ŽŽ‡…–‡†
ƒ†‡–‘ˆ”‡ˆ—†•‰‹˜‡‹–Šƒ–›‡ƒ”ǡƒ•ƒ—†‹–‡†„›–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”Ǧ
‡‡”ƒŽ‘ˆ†‹ƒǤ
”‡•’‡…–‘ˆƒ›–ƒ–‡ǡ‹ˆƒ›’ƒ”–‘ˆ”‡˜‡—‡•‡–‹‘‡†ƒ„‘˜‡ƒ”‡‘–…”‡†‹–‡†‹–Š‡‘•‘Ž‹†ƒ–‡† —†‘ˆ–Š‡
”‡•’‡…–‹˜‡–ƒ–‡ǡ–Š‡•ƒ‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ„ƒ•‡›‡ƒ””‡˜‡—‡‘ˆ–Š‡–ƒ–‡ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•
ƒ›„‡’”‡•…”‹„‡†Ǥ
PROJECTED REVENUE FOR ANY YEAR [SECTION 6]
Š‡’”‘Œ‡…–‡†”‡˜‡—‡ˆ‘”ƒ››‡ƒ”‹ƒ–ƒ–‡•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†„›ƒ’’Ž›‹‰–Š‡’”‘Œ‡…–‡†‰”‘™–Š”ƒ–‡‘˜‡”–Š‡„ƒ•‡
›‡ƒ””‡˜‡—‡‘ˆ–Šƒ––ƒ–‡Ǥ
Illustration Ȃˆ–Š‡„ƒ•‡›‡ƒ””‡˜‡—‡ˆ‘”ʹͲͳͷǦͳ͸ˆ‘”ƒ…‘…‡”‡†–ƒ–‡ǡ…ƒŽ…—Žƒ–‡†ƒ•’‡”•‡…–‹‘ͷ‹•‘‡Š—†”‡†
”—’‡‡•ǡ–Š‡–Š‡’”‘Œ‡…–‡†”‡˜‡—‡ˆ‘”ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲͳͺǦͳͻ•ŠƒŽŽ„‡ƒ•ˆ‘ŽŽ‘™•Ȃ
”‘Œ‡…–‡†‡˜‡—‡ˆ‘”ʹͲͳͺǦͳͻαͳͲͲȋͳΪͳͶȀͳͲͲȌ͵
GST COMPENSATION [SECTION 7]
Š‡…‘’‡•ƒ–‹‘’ƒ›ƒ„Ž‡–‘ƒ–ƒ–‡•ŠƒŽŽ„‡’”‘˜‹•‹‘ƒŽŽ›…ƒŽ…—Žƒ–‡†ƒ†”‡Ž‡ƒ•‡†ƒ––Š‡‡†‘ˆ‡˜‡”›–™‘‘–Š•
’‡”‹‘†ǡƒ†•ŠƒŽŽ„‡ϐ‹ƒŽŽ›…ƒŽ…—Žƒ–‡†ˆ‘”‡˜‡”›ϐ‹ƒ…‹ƒŽ›‡ƒ”ƒˆ–‡”–Š‡”‡…‡‹’–‘ˆϐ‹ƒŽ”‡˜‡—‡ϐ‹‰—”‡•ǡƒ•ƒ—†‹–‡†„›
–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”
‡‡”ƒŽ‘ˆ†‹ƒǤ‘™‡˜‡”ǡ‹…ƒ•‡ƒ›‡š…‡••ƒ‘—–Šƒ•„‡‡”‡Ž‡ƒ•‡†ƒ•…‘’‡•ƒ–‹‘
–‘ƒ–ƒ–‡‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†ǡƒ•’‡”–Š‡ƒ—†‹–‡†ϐ‹‰—”‡•‘ˆ”‡˜‡—‡…‘ŽŽ‡…–‡†ǡ–Š‡
‡š…‡•• ƒ‘—– •‘ ”‡Ž‡ƒ•‡† •ŠƒŽŽ „‡ ƒ†Œ—•–‡† ƒ‰ƒ‹•– –Š‡ …‘’‡•ƒ–‹‘ ƒ‘—– ’ƒ›ƒ„Ž‡ –‘ •—…Š –ƒ–‡ ‹ –Š‡
•—„•‡“—‡–ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥȏ‡…–‹‘͹ȋʹȌȐ
Š‡–‘–ƒŽ…‘’‡•ƒ–‹‘’ƒ›ƒ„Ž‡ˆ‘”ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†–‘ƒ›–ƒ–‡•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†
‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 791

ƒȌ –Š‡’”‘Œ‡…–‡†”‡˜‡—‡ˆ‘”ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†ǡ™Š‹…Š…‘—Ž†Šƒ˜‡ƒ……”—‡†–‘ƒ–ƒ–‡
‹–Š‡ƒ„•‡…‡‘ˆ–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšǡ•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†„›ƒ’’Ž›‹‰–Š‡’”‘Œ‡…–‡†‰”‘™–Š”ƒ–‡‘˜‡”
–Š‡„ƒ•‡›‡ƒ””‡˜‡—‡‘ˆ–Šƒ–•–ƒ–‡Ǥ
„Ȍ –Š‡ƒ…–—ƒŽ”‡˜‡—‡…‘ŽŽ‡…–‡†„›ƒ–ƒ–‡‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ„‡ǣ
‹Ǥ –Š‡ƒ…–—ƒŽ”‡˜‡—‡ˆ”‘–ƒ–‡–ƒš…‘ŽŽ‡…–‡†„›–Š‡–ƒ–‡ǡ‡–‘ˆ”‡ˆ—†•‰‹˜‡„›–Š‡•ƒ‹†–ƒ–‡—†‡”
Šƒ’–‡”•ƒ†‘ˆ–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–Ǣ
‹‹Ǥ –Š‡‹–‡‰”ƒ–‡†‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšƒ’’‘”–‹‘‡†–‘–Šƒ––ƒ–‡Ǣƒ†
‹‹‹Ǥ ƒ›…‘ŽŽ‡…–‹‘‘ˆ–ƒš‡•‘ƒ……‘—–‘ˆ–Š‡–ƒš‡•Ž‡˜‹‡†„›–Š‡”‡•’‡…–‹˜‡–ƒ–‡—†‡”–Š‡…–••’‡…‹ϐ‹‡†‹
•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ͷǡ‡–‘ˆ”‡ˆ—†‘ˆ•—…Š–ƒš‡•ǡƒ•…‡”–‹ϐ‹‡†„›–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”Ǧ

‡‡”ƒŽ‘ˆ†‹ƒǤ
…Ȍ –Š‡–‘–ƒŽ…‘’‡•ƒ–‹‘’ƒ›ƒ„Ž‡‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”•ŠƒŽŽ„‡–Š‡†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡’”‘Œ‡…–‡†”‡˜‡—‡
ˆ‘”ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”ƒ†–Š‡ƒ…–—ƒŽ”‡˜‡—‡…‘ŽŽ‡…–‡†„›ƒ–ƒ–‡”‡ˆ‡””‡†–‘‹…Žƒ—•‡ȋ„ȌǤȏ‡…–‹‘͹ȋ͵ȌȐ
Š‡Ž‘••‘ˆ”‡˜‡—‡ƒ––Š‡‡†‘ˆ‡˜‡”›–™‘‘–Š•’‡”‹‘†‹ƒ››‡ƒ”ˆ‘”ƒ–ƒ–‡†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ
„‡…ƒŽ…—Žƒ–‡†ǡƒ––Š‡‡†‘ˆ–Š‡•ƒ‹†’‡”‹‘†ǡ‹–Š‡ˆ‘ŽŽ‘™‹‰ƒ‡”ǣ
ƒȌ Š‡’”‘Œ‡…–‡†”‡˜‡—‡–Šƒ–…‘—Ž†Šƒ˜‡„‡‡‡ƒ”‡†„›–Š‡–ƒ–‡‹ƒ„•‡…‡‘ˆ–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒš–‹ŽŽ
–Š‡‡†‘ˆ–Š‡”‡Ž‡˜ƒ––™‘‘–Š•’‡”‹‘†‘ˆ–Š‡”‡•’‡…–‹˜‡ϐ‹ƒ…‹ƒŽ›‡ƒ”•ŠƒŽŽ„‡…ƒŽ…—Žƒ–‡†‘ƒ’”‘Ǧ”ƒ–ƒ
„ƒ•‹• ƒ• ƒ ’‡”…‡–ƒ‰‡ ‘ˆ –Š‡ –‘–ƒŽ ’”‘Œ‡…–‡† ”‡˜‡—‡ ˆ‘” ƒ› ϐ‹ƒ…‹ƒŽ ›‡ƒ” †—”‹‰ –Š‡ –”ƒ•‹–‹‘ ’‡”‹‘†ǡ
…ƒŽ…—Žƒ–‡†‹ƒ……‘”†ƒ…‡™‹–Š•‡…–‹‘͸Ǥ

Illustrationǣˆ–Š‡’”‘Œ‡…–‡†”‡˜‡—‡ˆ‘”ƒ››‡ƒ”…ƒŽ…—Žƒ–‡†‹ƒ……‘”†ƒ…‡™‹–Š•‡…–‹‘͸‹•‘‡Š—†”‡†
”—’‡‡•ǡˆ‘”…ƒŽ…—Žƒ–‹‰–Š‡’”‘Œ‡…–‡†”‡˜‡—‡–Šƒ–…‘—Ž†„‡‡ƒ”‡†–‹ŽŽ–Š‡‡†‘ˆ–Š‡’‡”‹‘†‘ˆ–‡‘–Š•
ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‹••—„Ǧ•‡…–‹‘•ŠƒŽŽ„‡ͳͲͲšȋͳͲȀͳʹȌα•Ǥͺ͵Ǥ͵͵Ǣ

„Ȍ Š‡ƒ…–—ƒŽ”‡˜‡—‡…‘ŽŽ‡…–‡†„›ƒ–ƒ–‡–‹ŽŽ–Š‡‡†‘ˆ”‡Ž‡˜ƒ––™‘‘–Š•’‡”‹‘†‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰
–Š‡–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ„‡ǣ
‹Ǥ –Š‡ƒ…–—ƒŽ”‡˜‡—‡ˆ”‘–ƒ–‡–ƒš…‘ŽŽ‡…–‡†„›–Š‡–ƒ–‡ǡ‡–‘ˆ”‡ˆ—†•‰‹˜‡„›–Š‡–ƒ–‡—†‡”Šƒ’–‡”•
ƒ†‘ˆ–Š‡–ƒ–‡
‘‘†•ƒ†‡”˜‹…‡•ƒš…–Ǣ
‹‹Ǥ –Š‡ ‹–‡‰”ƒ–‡† ‰‘‘†• ƒ† •‡”˜‹…‡• –ƒš ƒ’’‘”–‹‘‡† –‘ –Šƒ– –ƒ–‡ǡ ƒ• …‡”–‹ϐ‹‡† „› –Š‡ ”‹…‹’ƒŽ Š‹‡ˆ
‘–”‘ŽŽ‡”‘ˆ……‘—–•‘ˆ–Š‡‡–”ƒŽ‘ƒ”†‘ˆ†‹”‡…–ƒš‡•ƒ†—•–‘•Ǣƒ†
‹‹‹Ǥ ƒ›…‘ŽŽ‡…–‹‘‘ˆ–ƒš‡•Ž‡˜‹‡†„›–Š‡•ƒ‹†–ƒ–‡ǡ—†‡”–Š‡…–••’‡…‹ϐ‹‡†‹•—„Ǧ•‡…–‹‘ȋͶȌ‘ˆ•‡…–‹‘ͷǡ
‡–‘ˆ”‡ˆ—†‘ˆ•—…Š–ƒš‡•Ǣ
…Ȍ –Š‡ ’”‘˜‹•‹‘ƒŽ …‘’‡•ƒ–‹‘ ’ƒ›ƒ„Ž‡ –‘ ƒ› –ƒ–‡ ƒ– –Š‡ ‡† ‘ˆ –Š‡ ”‡Ž‡˜ƒ– –™‘ ‘–Š• ’‡”‹‘† ‹ ƒ›
ϐ‹ƒ…‹ƒŽ ›‡ƒ” •ŠƒŽŽ „‡ –Š‡ †‹ˆˆ‡”‡…‡ „‡–™‡‡ –Š‡ ’”‘Œ‡…–‡† ”‡˜‡—‡ –‹ŽŽ –Š‡ ‡† ‘ˆ –Š‡ ”‡Ž‡˜ƒ– ’‡”‹‘† ‹
ƒ……‘”†ƒ…‡™‹–Š…Žƒ—•‡ȋƒȌƒ†–Š‡ƒ…–—ƒŽ”‡˜‡—‡…‘ŽŽ‡…–‡†„›ƒ–ƒ–‡‹–Š‡•ƒ‹†’‡”‹‘†ƒ•”‡ˆ‡””‡†–‘‹
…Žƒ—•‡ȋ„Ȍǡ”‡†—…‡†„›–Š‡’”‘˜‹•‹‘ƒŽ…‘’‡•ƒ–‹‘’ƒ‹†–‘ƒ–ƒ–‡–‹ŽŽ–Š‡‡†‘ˆ–Š‡’”‡˜‹‘—•–™‘‘–Š•
’‡”‹‘†‹–Š‡•ƒ‹†ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†Ǥȏ‡…–‹‘͹ȋͶȌȐ
…ƒ•‡‘ˆƒ›†‹ˆˆ‡”‡…‡„‡–™‡‡–Š‡ϐ‹ƒŽ…‘’‡•ƒ–‹‘ƒ‘—–’ƒ›ƒ„Ž‡–‘ƒ–ƒ–‡…ƒŽ…—Žƒ–‡†‹ƒ……‘”†ƒ…‡™‹–Š
–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋ͵Ȍ—’‘”‡…‡‹’–‘ˆ–Š‡ƒ—†‹–‡†”‡˜‡—‡ϐ‹‰—”‡•ˆ”‘–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”Ǧ

‡‡”ƒŽ‘ˆ†‹ƒǡƒ†–Š‡–‘–ƒŽ’”‘˜‹•‹‘ƒŽ…‘’‡•ƒ–‹‘ƒ‘—–”‡Ž‡ƒ•‡†–‘ƒ–ƒ–‡‹–Š‡•ƒ‹†ϐ‹ƒ…‹ƒŽ›‡ƒ”‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•—„Ǧ•‡…–‹‘ȋͶȌǡ–Š‡•ƒ‡•ŠƒŽŽ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•–”‡Ž‡ƒ•‡‘ˆ…‘’‡•ƒ–‹‘–‘–Š‡
–ƒ–‡‹–Š‡•—„•‡“—‡–ϐ‹ƒ…‹ƒŽ›‡ƒ”Ǥȏ‡…–‹‘͹ȋͷȌȐ
Š‡”‡‘…‘’‡•ƒ–‹‘‹•†—‡–‘„‡”‡Ž‡ƒ•‡†‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”ǡƒ†‹…ƒ•‡ƒ›‡š…‡••ƒ‘—–Šƒ•„‡‡”‡Ž‡ƒ•‡†
–‘ ƒ –ƒ–‡ ‹ –Š‡ ’”‡˜‹‘—• ›‡ƒ”ǡ –Š‹• ƒ‘—– •ŠƒŽŽ „‡ ”‡ˆ—†‡† „› –Š‡ –ƒ–‡ –‘ –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ† •—…Š
ƒ‘—–•ŠƒŽŽ„‡…”‡†‹–‡†–‘–Š‡ —†‹•—…Šƒ‡”ƒ•ƒ›„‡’”‡•…”‹„‡†Ǥȏ‡…–‹‘͹ȋ͸ȌȐ
 792 Lesson 16 Ȉ EP-TL

COMPENSATION CESS [SECTION 8]

Š‡”‡•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ…‡••‘•—…Š‹–”ƒǦ–ƒ–‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡƒ•’”‘˜‹†‡†ˆ‘”‹•‡…–‹‘ͻ‘ˆ
–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒ†•—…Š‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šƒ•’”‘˜‹†‡†
ˆ‘”‹•‡…–‹‘ͷ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒ†…‘ŽŽ‡…–‡†‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡
‘—…‹Žǡ ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ’”‘˜‹†‹‰ …‘’‡•ƒ–‹‘ –‘ –Š‡ –ƒ–‡• ˆ‘” Ž‘•• ‘ˆ ”‡˜‡—‡ ƒ”‹•‹‰ ‘ ƒ……‘—– ‘ˆ
‹’Ž‡‡–ƒ–‹‘‘ˆ–Š‡‰‘‘†•ƒ†•‡”˜‹…‡•–ƒš™‹–Š‡ˆˆ‡…–ˆ”‘–Š‡†ƒ–‡ˆ”‘™Š‹…Š–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‡–”ƒŽ

‘‘†• ƒ† ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹ ‹• „”‘—‰Š– ‹–‘ ˆ‘”…‡ǡ ˆ‘” ƒ ’‡”‹‘† ‘ˆ ϐ‹˜‡ ›‡ƒ”• ‘” ˆ‘” •—…Š ’‡”‹‘† ƒ• ƒ› „‡
’”‡•…”‹„‡†‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹ŽǤ
‘™‡˜‡”ǡ‘•—…Š…‡•••ŠƒŽŽ„‡Ž‡˜‹ƒ„Ž‡‘•—’’Ž‹‡•ƒ†‡„›ƒ–ƒšƒ„Ž‡’‡”•‘™Š‘Šƒ•†‡…‹†‡†–‘‘’–ˆ‘”…‘’‘•‹–‹‘
Ž‡˜›—†‡”•‡…–‹‘ͳͲ‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹Ǥ
Š‡…‡•••ŠƒŽŽ„‡Ž‡˜‹‡†‘•—…Š•—’’Ž‹‡•‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ƒ•ƒ”‡•’‡…‹ϐ‹‡†‹…‘Ž—ȋʹȌ‘ˆ–Š‡…Š‡†—Ž‡ǡ‘–Š‡
„ƒ•‹•‘ˆ˜ƒŽ—‡ǡ“—ƒ–‹–›‘”‘•—…Š„ƒ•‹•ƒ–•—…Š”ƒ–‡‘–‡š…‡‡†‹‰–Š‡”ƒ–‡•‡–ˆ‘”–Š‹–Š‡…‘””‡•’‘†‹‰‡–”›‹
…‘Ž—ȋͶȌ‘ˆ–Š‡…Š‡†—Ž‡ǡƒ•–Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›ǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘
‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ•’‡…‹ˆ›Ǣ
Š‡”‡–Š‡…‡••‹•…Šƒ”‰‡ƒ„Ž‡‘ƒ›•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Š™‹–Š”‡ˆ‡”‡…‡–‘–Š‡‹”˜ƒŽ—‡ǡ–Š‡˜ƒŽ—‡‘ˆ
•—…Š•—’’Ž›•ŠƒŽŽ„‡†‡–‡”‹‡†—†‡”•‡…–‹‘ͳͷ‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ˆ‘”ƒŽŽ‹–”ƒǦ–ƒ–‡ƒ†
‹–‡”Ǧ–ƒ–‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǤ
Š‡…‡••‘‰‘‘†•‹’‘”–‡†‹–‘†‹ƒ•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ‡…–‹‘͵
‘ˆ–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷǡƒ––Š‡’‘‹–™Š‡†—–‹‡•‘ˆ—•–‘•ƒ”‡Ž‡˜‹‡†‘–Š‡•ƒ‹†‰‘‘†•—†‡”‡…–‹‘ͳʹ
‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹǡ‘ƒ˜ƒŽ—‡†‡–‡”‹‡†—†‡”–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷǤ
PAYMENTS RETURN AND REFUND [SECTION 9]
˜‡”›–ƒšƒ„Ž‡’‡”•‘ǡƒ‹‰ƒ–ƒšƒ„Ž‡•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡ•ŠƒŽŽǣ
ƒȌ ’ƒ›–Š‡ƒ‘—–‘ˆ…‡••ƒ•’ƒ›ƒ„Ž‡—†‡”–Š‹•…–‹•—…Šƒ‡”Ǣ
„Ȍ ˆ—”‹•Š•—…Š”‡–—”•‹•—…Šˆ‘”•ǡƒŽ‘‰™‹–Š–Š‡”‡–—”•–‘„‡ϐ‹Ž‡†—†‡”–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•
ƒš…–Ǣƒ†
…Ȍ ƒ’’Ž›ˆ‘””‡ˆ—†•‘ˆ•—…Š…‡••’ƒ‹†‹•—…Šˆ‘”ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
‘”ƒŽŽ’—”’‘•‡•‘ˆˆ—”‹•Š‹‰‘ˆ”‡–—”•ƒ†…Žƒ‹‹‰”‡ˆ—†•ǡ‡š…‡’–ˆ‘”–Š‡ˆ‘”–‘„‡ϐ‹Ž‡†ǡ–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡
‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒ†–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”ǡ•ŠƒŽŽǡƒ•ˆƒ”ƒ•ƒ›„‡ǡƒ’’Ž›‹”‡Žƒ–‹‘–‘
–Š‡Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ–Š‡…‡••Ž‡˜‹ƒ„Ž‡—†‡”•‡…–‹‘ͺ‘ƒŽŽ–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–Šǡƒ•–Š‡›
ƒ’’Ž›‹”‡Žƒ–‹‘–‘–Š‡Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ…‡–”ƒŽ–ƒš‘•—…Š•—’’Ž‹‡•—†‡”–Š‡•ƒ‹†…–‘”–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”Ǥ
CREDITING PROCEEDS OF CESS TO FUND [SECTION 10]
ȋͳȌ Š‡’”‘…‡‡†•‘ˆ–Š‡…‡••Ž‡˜‹ƒ„Ž‡—†‡”•‡…–‹‘ͺƒ†•—…Š‘–Š‡”ƒ‘—–•ƒ•ƒ›„‡”‡…‘‡†‡†„›–Š‡
‘—…‹Žǡ•ŠƒŽŽ„‡…”‡†‹–‡†–‘ƒ‘ǦŽƒ’•ƒ„Ž‡ —†‘™ƒ•–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒš‘’‡•ƒ–‹‘ —†ǡ
™Š‹…Š•ŠƒŽŽˆ‘”’ƒ”–‘ˆ–Š‡’—„Ž‹…ƒ……‘—–‘ˆ†‹ƒƒ†•ŠƒŽŽ„‡—–‹Ž‹•‡†ˆ‘”’—”’‘•‡••’‡…‹ϐ‹‡†‹–Š‡•ƒ‹†•‡…–‹‘Ǥ
ȋʹȌ ŽŽƒ‘—–•’ƒ›ƒ„Ž‡–‘–Š‡–ƒ–‡•—†‡”•‡…–‹‘͹•ŠƒŽŽ„‡’ƒ‹†‘—–‘ˆ–Š‡ —†Ǥ
ȋ͵Ȍ ‹ˆ–›’‡”…‡–Ǥ‘ˆ–Š‡ƒ‘—–”‡ƒ‹‹‰——–‹Ž‹•‡†‹–Š‡ —†ƒ––Š‡‡†‘ˆ–Š‡–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ„‡
–”ƒ•ˆ‡””‡†–‘–Š‡‘•‘Ž‹†ƒ–‡† —†‘ˆ†‹ƒƒ•–Š‡•Šƒ”‡‘ˆ‡–”‡ǡƒ†–Š‡„ƒŽƒ…‡ϐ‹ˆ–›’‡”…‡–Ǥ•ŠƒŽŽ„‡
†‹•–”‹„—–‡†ƒ‘‰•––Š‡–ƒ–‡•‹–Š‡”ƒ–‹‘‘ˆ–Š‡‹”–‘–ƒŽ”‡˜‡—‡•ˆ”‘–Š‡–ƒ–‡–ƒš‘”–Š‡‹‘–‡””‹–‘”›
‰‘‘†•ƒ†•‡”˜‹…‡•–ƒšǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹–Š‡Žƒ•–›‡ƒ”‘ˆ–Š‡–”ƒ•‹–‹‘’‡”‹‘†Ǥ
ȋ͵Ȍ‘–™‹–Š•–ƒ†‹‰ƒ›–Š‹‰…‘–ƒ‹‡†‹•—„Ǧ•‡…–‹‘ȋ͵Ȍǡϐ‹ˆ–›’‡”…‡–Ǥ‘ˆ•—…Šƒ‘—–ǡƒ•ƒ›„‡”‡…‘‡†‡†
„›–Š‡‘—…‹Žǡ™Š‹…Š”‡ƒ‹•——–‹Ž‹•‡†‹–Š‡ —†ǡƒ–ƒ›’‘‹–‘ˆ–‹‡‹ƒ›ϐ‹ƒ…‹ƒŽ›‡ƒ”†—”‹‰–Š‡
–”ƒ•‹–‹‘’‡”‹‘†•ŠƒŽŽ„‡–”ƒ•ˆ‡””‡†–‘–Š‡‘•‘Ž‹†ƒ–‡† —†‘ˆ†‹ƒƒ•–Š‡•Šƒ”‡‘ˆ‡–”‡ǡƒ†–Š‡„ƒŽƒ…‡
ϐ‹ˆ–›’‡”…‡–Ǥ•ŠƒŽŽ„‡†‹•–”‹„—–‡†ƒ‘‰•––Š‡–ƒ–‡•‹–Š‡”ƒ–‹‘‘ˆ–Š‡‹”„ƒ•‡›‡ƒ””‡˜‡—‡†‡–‡”‹‡†‹
ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷǣ
 ”‘˜‹†‡†–Šƒ–‹…ƒ•‡‘ˆ•Š‘”–ˆƒŽŽ‹–Š‡ƒ‘—–…‘ŽŽ‡…–‡†‹–Š‡ —†ƒ‰ƒ‹•––Š‡”‡“—‹”‡‡–‘ˆ…‘’‡•ƒ–‹‘
–‘„‡”‡Ž‡ƒ•‡†—†‡”•‡…–‹‘͹ˆ‘”ƒ›–™‘‘–Š•ǯ’‡”‹‘†ǡϐ‹ˆ–›’‡”…‡–Ǥ‘ˆ–Š‡•ƒ‡ǡ„—–‘–‡š…‡‡†‹‰–Š‡
 Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 793

–‘–ƒŽƒ‘—––”ƒ•ˆ‡””‡†–‘–Š‡‡–”‡ƒ†–Š‡–ƒ–‡•ƒ•”‡…‘‡†‡†„›–Š‡‘—…‹Žǡ•ŠƒŽŽ„‡”‡…‘˜‡”‡†
ˆ”‘ –Š‡ ‡–”‡ ƒ† –Š‡ „ƒŽƒ…‡ ϐ‹ˆ–› ’‡” …‡–Ǥ ˆ”‘ –Š‡ –ƒ–‡• ‹ –Š‡ ”ƒ–‹‘ ‘ˆ –Š‡‹” „ƒ•‡ ›‡ƒ” ”‡˜‡—‡
†‡–‡”‹‡†‹ƒ……‘”†ƒ…‡™‹–Š–Š‡’”‘˜‹•‹‘•‘ˆ•‡…–‹‘ͷǤ
ȋͶȌ Š‡ƒ……‘—–•”‡Žƒ–‹‰–‘ —†•ŠƒŽŽ„‡ƒ—†‹–‡†„›–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”
‡‡”ƒŽ‘ˆ†‹ƒ‘”ƒ›’‡”•‘
ƒ’’‘‹–‡†„›Š‹ƒ–•—…Š‹–‡”˜ƒŽ•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†„›Š‹ƒ†ƒ›‡š’‡†‹–—”‡‹…‘‡…–‹‘™‹–Š•—…Š
ƒ—†‹–•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡„›–Š‡‡–”ƒŽ
‘˜‡”‡––‘–Š‡‘’–”‘ŽŽ‡”ƒ†—†‹–‘”Ǧ
‡‡”ƒŽ‘ˆ†‹ƒǤ
ȋͷȌ Š‡ ƒ……‘—–• ‘ˆ –Š‡ —†ǡ ƒ• …‡”–‹ϐ‹‡† „› –Š‡ ‘’–”‘ŽŽ‡” ƒ† —†‹–‘”Ǧ
‡‡”ƒŽ ‘ˆ †‹ƒ ‘” ƒ› ‘–Š‡” ’‡”•‘
ƒ’’‘‹–‡†„›Š‹‹–Š‹•„‡ŠƒŽˆ–‘‰‡–Š‡”™‹–Š–Š‡ƒ—†‹–”‡’‘”––Š‡”‡‘•ŠƒŽŽ„‡Žƒ‹†„‡ˆ‘”‡‡ƒ…Š‘—•‡‘ˆƒ”Ž‹ƒ‡–Ǥ
OTHER PROVISIONS RELATING TO CESS [SECTION 11]
Š‡’”‘˜‹•‹‘•‘ˆ–Š‡‡–”ƒŽ
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ƒ†–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹ǡ
ƒ† –Š‡ ”—Ž‡• ƒ†‡ –Š‡”‡—†‡”ǡ ‹…Ž—†‹‰ –Š‘•‡ ”‡Žƒ–‹‰ –‘ ƒ••‡••‡–ǡ ‹’—– –ƒš …”‡†‹–ǡ ‘Ǧ Ž‡˜›ǡ •Š‘”–Ǧ Ž‡˜›ǡ
‹–‡”‡•–ǡƒ’’‡ƒŽ•ǡ‘ˆˆ‡…‡•ƒ†’‡ƒŽ–‹‡•ǡ•ŠƒŽŽǡƒ•ˆƒ”ƒ•ƒ›„‡ǡmutatis mutandisǡƒ’’Ž›ǡ‹”‡Žƒ–‹‘–‘–Š‡Ž‡˜›ƒ†
…‘ŽŽ‡…–‹‘ ‘ˆ –Š‡ …‡•• Ž‡˜‹ƒ„Ž‡ —†‡” •‡…–‹‘ ͺ ‘ –Š‡ ‹–”ƒǦ–ƒ–‡ •—’’Ž› ‘ˆ ‰‘‘†• ƒ† •‡”˜‹…‡•ǡ ƒ• –Š‡› ƒ’’Ž› ‹
”‡Žƒ–‹‘–‘–Š‡Ž‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ…‡–”ƒŽ–ƒšƒ†‹–‡‰”ƒ–‡†–ƒš‘•—…Š‹–”ƒǦ–ƒ–‡•—’’Ž‹‡•—†‡”–Š‡•ƒ‹†…–‘”
–Š‡”—Ž‡•ƒ†‡–Š‡”‡—†‡”Ǥ
Š‡‹’—––ƒš…”‡†‹–‹”‡•’‡…–‘ˆ…‡••‘•—’’Ž›‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•Ž‡˜‹ƒ„Ž‡—†‡”•‡…–‹‘ͺǡ•ŠƒŽŽ„‡—–‹Ž‹•‡†‘Ž›
–‘™ƒ”†•’ƒ›‡–‘ˆ•ƒ‹†…‡••‘•—’’Ž›‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•Ž‡˜‹ƒ„Ž‡—†‡”–Š‡•ƒ‹†•‡…–‹‘Ǥ
POWER TO MAKE RULES [SECTION 12]
Š‡‡–”ƒŽ
‘˜‡”‡–•ŠƒŽŽǡ‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡƒ‡
”—Ž‡•ˆ‘”…ƒ””›‹‰‘—––Š‡’”‘˜‹•‹‘•‘ˆ–Š‹•…–Ǥ’ƒ”–‹…—Žƒ”ǡƒ†™‹–Š‘—–’”‡Œ—†‹…‡–‘–Š‡‰‡‡”ƒŽ‹–›‘ˆ–Š‡ˆ‘”‡‰‘‹‰
’‘™‡”ǡ•—…Š”—Ž‡•ƒ›’”‘˜‹†‡ˆ‘”ƒŽŽ‘”ƒ›‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ––‡”•ǣ
ƒȌ –Š‡…‘†‹–‹‘•™Š‹…Š™‡”‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ„ƒ•‡›‡ƒ””‡˜‡—‡‘ˆ–Š‡–ƒ–‡•
„Ȍ –Š‡…‘†‹–‹‘••—„Œ‡…––‘™Š‹…Šƒ›’ƒ”–‘ˆ”‡˜‡—‡•‘–…”‡†‹–‡†‹–Š‡‘•‘Ž‹†ƒ–‡† —†‘ˆ–Š‡”‡•’‡…–‹˜‡
–ƒ–‡•ŠƒŽŽ„‡‹…Ž—†‡†‹–Š‡–‘–ƒŽ„ƒ•‡›‡ƒ””‡˜‡—‡‘ˆ–Š‡–ƒ–‡
…Ȍ –Š‡ƒ‡”‘ˆ”‡ˆ—†‘ˆ…‘’‡•ƒ–‹‘„›–Š‡–ƒ–‡•–‘–Š‡‡–”ƒŽ
‘˜‡”‡–
†Ȍ –Š‡ƒ‡”‘ˆŽ‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ…‡••ƒ†–Š‡’‡”‹‘†‘ˆ‹–•‹’‘•‹–‹‘
‡Ȍ –Š‡ƒ‡”ƒ†ˆ‘”•ˆ‘”’ƒ›‡–‘ˆ…‡••ǡˆ—”‹•Š‹‰‘ˆ”‡–—”•ƒ†”‡ˆ—†‘ˆ…‡••
ˆȌ ƒ›‘–Š‡”ƒ––‡”™Š‹…Š‹•–‘„‡ǡ‘”ƒ›„‡ǡ’”‡•…”‹„‡†ǡ‘”‹”‡•’‡…–‘ˆ™Š‹…Š’”‘˜‹•‹‘‹•–‘„‡ƒ†‡ǡ„›”—Ž‡•Ǥ

Overview of the IGST Act*

Q 1. What is IGST?
AnsǤDz–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒšdzȋ
Ȍ‡ƒ•–ƒšŽ‡˜‹‡†—†‡”–Š‡
…–‘–Š‡•—’’Ž›‘ˆƒ›‰‘‘†•
ƒ†Ȁ‘”•‡”˜‹…‡•‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡–”ƒ†‡‘”…‘‡”…‡Ǥ
Q 2. What are inter-state supplies?
Ans. •—’’Ž›‘ˆ‰‘‘†•ƒ†Ȁ‘”•‡”˜‹…‡•‹–Š‡…‘—”•‡‘ˆ‹–‡”Ǧ–ƒ–‡–”ƒ†‡‘”…‘‡”…‡‡ƒ•ƒ›•—’’Ž›™Š‡”‡
–Š‡Ž‘…ƒ–‹‘‘ˆ–Š‡•—’’Ž‹‡”ƒ†–Š‡’Žƒ…‡‘ˆ•—’’Ž›ƒ”‡‹†‹ˆˆ‡”‡––ƒ–‡•ǡ–™‘†‹ˆˆ‡”‡–—‹‘–‡””‹–‘”›‘”‹ƒ
•–ƒ–‡ƒ†—‹‘–‡””‹–‘”› —”–Š‡”‹’‘”–‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•ǡ•—’’Ž‹‡•–‘—‹–•‘”†‡˜‡Ž‘’‡”ǡ‘”ƒ›•—’’Ž›
–Šƒ–‹•‘–ƒ‹–”ƒ•–ƒ–‡•—’’Ž›Ǥȋ‡…–‹‘͹‘ˆ–Š‡
…–ȌǤ
Q 3. How will the Inter-State supplies of Goods and Services be taxed under GST?
Ans. 
•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†„›‡–”‡‘‹–‡”•–ƒ–‡•—’’Ž‹‡•Ǥ
™‘—Ž†„‡„”‘ƒ†Ž›
’Ž—•

ƒ†•ŠƒŽŽ„‡Ž‡˜‹‡†‘ƒŽŽ‹–‡”Ǧ–ƒ–‡–ƒšƒ„Ž‡•—’’Ž‹‡•‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•Ǥ
Š‡‹–‡”Ǧ–ƒ–‡•‡ŽŽ‡”™‹ŽŽ’ƒ›
‘˜ƒŽ—‡ƒ††‹–‹‘ƒˆ–‡”ƒ†Œ—•–‹‰ƒ˜ƒ‹Žƒ„Ž‡…”‡†‹–‘ˆ
ǡ
ǡƒ†
‘
Š‹•’—”…Šƒ•‡•ǤŠ‡š’‘”–‹‰–ƒ–‡™‹ŽŽ–”ƒ•ˆ‡”–‘–Š‡‡–”‡–Š‡…”‡†‹–‘ˆ
—•‡†‹’ƒ›‡–‘ˆ
ǤŠ‡
’‘”–‹‰†‡ƒŽ‡”™‹ŽŽ…Žƒ‹…”‡†‹–‘ˆ
™Š‹Ž‡†‹•…Šƒ”‰‹‰Š‹•‘—–’—––ƒšŽ‹ƒ„‹Ž‹–›‹Š‹•‘™–ƒ–‡Ǥ
794 Lesson 16 Ȉ EP-TL

Š‡ ‡–”‡ ™‹ŽŽ –”ƒ•ˆ‡” –‘ –Š‡ ‹’‘”–‹‰ –ƒ–‡ –Š‡ …”‡†‹– ‘ˆ 
 —•‡† ‹ ’ƒ›‡– ‘ˆ 
Ǥ Š‡ ”‡Ž‡˜ƒ–
‹ˆ‘”ƒ–‹‘‹•ƒŽ•‘•—„‹––‡†–‘–Š‡‡–”ƒŽ‰‡…›™Š‹…Š™‹ŽŽƒ…–ƒ•ƒ…Ž‡ƒ”‹‰Š‘—•‡‡…Šƒ‹•ǡ˜‡”‹ˆ›–Š‡
…Žƒ‹•ƒ†‹ˆ‘”–Š‡”‡•’‡…–‹˜‡‰‘˜‡”‡–•–‘–”ƒ•ˆ‡”–Š‡ˆ—†•Ǥ
Q 4. What are the advantages of IGST Model?
Ans. Š‡ ƒŒ‘” ƒ†˜ƒ–ƒ‰‡• ‘ˆ 
 ‘†‡Ž ƒ”‡ǣ ƒǤ ƒ‹–‡ƒ…‡ ‘ˆ —‹–‡””—’–‡†  …Šƒ‹ ‘ ‹–‡”Ǧ–ƒ–‡
–”ƒ•ƒ…–‹‘•Ǣ„Ǥ‘—’ˆ”‘–’ƒ›‡–‘ˆ–ƒš‘”•—„•–ƒ–‹ƒŽ„Ž‘…ƒ‰‡‘ˆˆ—†•ˆ‘”–Š‡‹–‡”Ǧ–ƒ–‡•‡ŽŽ‡”‘”„—›‡”Ǣ…Ǥ
‘”‡ˆ—†…Žƒ‹‹‡š’‘”–‹‰–ƒ–‡ǡƒ•‹•—•‡†—’™Š‹Ž‡’ƒ›‹‰–Š‡–ƒšǢ†Ǥ‡ŽˆǦ‘‹–‘”‹‰‘†‡ŽǢ‡Ǥ•—”‡•
–ƒš‡—–”ƒŽ‹–›™Š‹Ž‡‡‡’‹‰–Š‡–ƒš”‡‰‹‡•‹’Ž‡ǢˆǤ‹’Ž‡ƒ……‘—–‹‰™‹–Š‘ƒ††‹–‹‘ƒŽ…‘’Ž‹ƒ…‡„—”†‡
‘–Š‡–ƒš’ƒ›‡”Ǣ‰Ǥ‘—Ž†ˆƒ…‹Ž‹–ƒ–‡‹‡•—”‹‰Š‹‰ŠŽ‡˜‡Ž‘ˆ…‘’Ž‹ƒ…‡ƒ†–Š—•Š‹‰Š‡”…‘ŽŽ‡…–‹‘‡ˆϐ‹…‹‡…›Ǥ
‘†‡Ž…ƒŠƒ†Ž‡Ǯ—•‹‡••–‘—•‹‡••ǯƒ•™‡ŽŽƒ•Ǯ—•‹‡••–‘‘•—‡”ǯ–”ƒ•ƒ…–‹‘•Ǥ
Q 5. How will imports/exports be taxed under GST?
Ans. ŽŽ ‹’‘”–•Ȁ‡š’‘”–• ™‹ŽŽ „‡ †‡‡‡† ƒ• ‹–‡”Ǧ•–ƒ–‡ •—’’Ž‹‡• ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ Ž‡˜› ‘ˆ
 ȋ
ȌǤ Š‡
‹…‹†‡…‡‘ˆ–ƒš™‹ŽŽˆ‘ŽŽ‘™–Š‡†‡•–‹ƒ–‹‘’”‹…‹’Ž‡ƒ†–Š‡–ƒš”‡˜‡—‡‹…ƒ•‡‘ˆ
™‹ŽŽƒ……”—‡–‘–Š‡–ƒ–‡
™Š‡”‡–Š‡‹’‘”–‡†‰‘‘†•ƒ†•‡”˜‹…‡•ƒ”‡…‘•—‡†Ǥ —ŽŽƒ†…‘’Ž‡–‡•‡–Ǧ‘ˆˆ™‹ŽŽ„‡ƒ˜ƒ‹Žƒ„Ž‡ƒ•‘ˆ–Š‡

’ƒ‹†‘‹’‘”–‘‰‘‘†•ƒ†•‡”˜‹…‡•Ǥš’‘”–•‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•™‹ŽŽ„‡œ‡”‘”ƒ–‡†ǤŠ‡‡š’‘”–‡”Šƒ•
–Š‡‘’–‹‘‡‹–Š‡”–‘‡š’‘”–—†‡”„‘†™‹–Š‘—–’ƒ›‡–‘ˆ†—–›ƒ†…Žƒ‹”‡ˆ—†‘ˆ‘”’ƒ›
ƒ––Š‡
–‹‡‘ˆ‡š’‘”–ƒ†…Žƒ‹”‡ˆ—†‘ˆ
ǤŠ‡
‘‹’‘”–•‹•Ž‡˜‹ƒ„Ž‡—†‡”–Š‡’”‘˜‹•‹‘•‘ˆ–Š‡—•–‘•
ƒ”‹ˆˆ…–ƒ†•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ––Š‡–‹‡‘ˆ‹’‘”–•ƒŽ‘‰™‹–Š–Š‡Ž‡˜›‘ˆ–Š‡—•–‘•…–ȋ‡…–‹‘ͷ‘ˆ–Š‡

…–ȌǤ
Q 6. How will the IGST be paid?
Ans. Š‡
’ƒ›‡–…ƒ„‡†‘‡—–‹Ž‹œ‹‰‘”„›…ƒ•ŠǤ‘™‡˜‡”ǡ–Š‡—•‡‘ˆˆ‘”’ƒ›‡–‘ˆ
™‹ŽŽ„‡
†‘‡—•‹‰–Š‡ˆ‘ŽŽ‘™‹‰Š‹‡”ƒ”…Š›ǡǦ ‹”•–ƒ˜ƒ‹Žƒ„Ž‡‘ˆ
•ŠƒŽŽ„‡—•‡†ˆ‘”Ȉ’ƒ›‡–‘ˆ
Ǣ…‡‘ˆ

‹•‡šŠƒ—•–‡†ǡ–Š‡‘ˆ
Ȉ•ŠƒŽŽ„‡—•‡†ˆ‘”’ƒ›‡–‘ˆ
Ǣˆ„‘–Š‘ˆ
ƒ†‘ˆ
ƒ”‡Ȉ
‡šŠƒ—•–‡†ǡ–Š‡‘Ž›–Š‡†‡ƒŽ‡”™‘—Ž†„‡’‡”‹––‡†–‘—•‡‘ˆ
ˆ‘”’ƒ›‡–‘ˆ
Ǥ
‡ƒ‹‹‰
Ž‹ƒ„‹Ž‹–›ǡ‹ˆƒ›ǡ•ŠƒŽŽ„‡†‹•…Šƒ”‰‡†—•‹‰’ƒ›‡–‹…ƒ•ŠǤ
›•–‡™‹ŽŽ‡•—”‡ƒ‹–‡ƒ…‡
‘ˆ–Š‹•Š‹‡”ƒ”…Š›ˆ‘”’ƒ›‡–‘ˆ
—•‹‰–Š‡…”‡†‹–Ǥ
Q 7. How will the settlement between Centre, exporting state and importing state be done?
Ans. Š‡”‡ ™‘—Ž† „‡ •‡––Ž‡‡– ‘ˆ ƒ……‘—– „‡–™‡‡ –Š‡ ‡–”‡ ƒ† –Š‡ •–ƒ–‡• ‘ –™‘ …‘—–•ǡ ™Š‹…Š ƒ”‡ ƒ•
ˆ‘ŽŽ‘™•ǣ
Centre and the exporting state ǣŠ‡‡š’‘”–‹‰•–ƒ–‡•ŠƒŽŽ’ƒ›–Š‡ƒ‘—–‡“—ƒŽ–‘–Š‡‘ˆ
—•‡†„›–Š‡
•—’’Ž‹‡”‹–Š‡‡š’‘”–‹‰•–ƒ–‡–‘–Š‡‡–”‡Ǥ
Centre and the importing state ǣŠ‡‡–”‡•ŠƒŽŽ’ƒ›–Š‡ƒ‘—–‡“—ƒŽ–‘–Š‡‘ˆ
—•‡†„›ƒ†‡ƒŽ‡”ˆ‘”
’ƒ›‡–‘ˆ
‘‹–”ƒǦ•–ƒ–‡•—’’Ž‹‡•ǤŠ‡•‡––Ž‡‡–™‘—Ž†„‡‘…——Žƒ–‹˜‡„ƒ•‹•ˆ‘”ƒ•–ƒ–‡–ƒ‹‰‹–‘
ƒ……‘—––Š‡†‡–ƒ‹Ž•ˆ—”‹•Š‡†„›ƒŽŽ–Š‡†‡ƒŽ‡”‹–Š‡•‡––Ž‡‡–’‡”‹‘†Ǥ‹‹Žƒ”•‡––Ž‡‡–‘ˆƒ‘—–™‘—Ž†ƒŽ•‘
„‡—†‡”–ƒ‡„‡–™‡‡
ƒ†
ƒ……‘—–Ǥ
Q 8. What treatment is given to supplies made to SEZ units or developer?
Ans. —’’Ž‹‡•–‘—‹–•‘”†‡˜‡Ž‘’‡”•ŠƒŽŽ„‡œ‡”‘”ƒ–‡†‹–Š‡•ƒ‡ƒ‡”ƒ•†‘‡ˆ‘”–Š‡’Š›•‹…ƒŽ‡š’‘”–•Ǥ
—’’Ž‹‡”•ŠƒŽŽŠƒ˜‡‘’–‹‘–‘ƒ‡•—’’Ž‹‡•–‘™‹–Š‘—–’ƒ›‡–‘ˆ–ƒš‡•ƒ†…Žƒ‹”‡ˆ—†•‘ˆ‹’—––ƒš‡•‘
•—…Š•—’’Ž‹‡•ȋ•‡…–‹‘ͳ͸‘ˆ–Š‡
…–ȌǤ
Q 9. Are business processes and compliance requirement same in the IGST and CGST Acts?
Ans. Š‡’”‘…‡†—”‡ƒ†…‘’Ž‹ƒ…‡”‡“—‹”‡‡–ƒ”‡•ƒ‡ˆ‘”’”‘…‡••‡•Ž‹‡•”‡‰‹•–”ƒ–‹‘ǡ”‡–—”ϐ‹Ž‹‰ƒ†
’ƒ›‡–‘ˆ–ƒšǤ —”–Š‡”ǡ–Š‡
…–„‘””‘™•–Š‡’”‘˜‹•‹‘•ˆ”‘–Š‡
…–ƒ•”‡Žƒ–‹‰–‘ƒ••‡••‡–ǡƒ—†‹–ǡ
˜ƒŽ—ƒ–‹‘ǡ–‹‡‘ˆ•—’’Ž›ǡ‹˜‘‹…‡ǡƒ……‘—–•ǡ”‡…‘”†•ǡƒ†Œ—†‹…ƒ–‹‘ǡƒ’’‡ƒŽ‡–…Ǥȋ‡…–‹‘ʹͲ‘ˆ–Š‡
…–ȌǤ
*Source : www.cbic.gov.in
Lesson 16 Ȉ Basic Overview on IGST, UTGST and GST Compensation to States Act 795

LESSON ROUND-UP

Ȉ ”‡•‹†‡–‘ͳʹ–Š’”‹ŽǡʹͲͳ͹ǡ‰ƒ˜‡ƒ••‡––‘–Š‡ˆ‘ŽŽ‘™‹‰ˆ‘—”…–•ǣ
Ȉ ‡–”ƒŽ
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹
Ȉ –‡‰”ƒ–‡†
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹
Ȉ ‹‘‡””‹–‘”›
‘‘†•Ƭ‡”˜‹…‡•ƒš…–ǡʹͲͳ͹
Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒšȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹
Ȉ ‡†‡”ƒŽ•–”—…–—”‡‘ˆ–Š‡‘•–‹–—–‹‘‹•…‘–‹—‡†—†‡”–Š‡
”‡‰‹‡‘ˆ‹†‹”‡…––ƒš‡•Ǥ
Ȉ 
‹•Ž‡˜‹‡†ƒ†…‘ŽŽ‡…–‡†„›–Š‡‡–”‡‘‹–‡”Ǧ•–ƒ–‡•—’’Ž›‘ˆ‰‘‘†•ƒ†•‡”˜‹…‡•‹…Ž—†‹‰‹’‘”–•
‹–‘†‹ƒƒ†•—’’Ž‹‡•ƒ†‡‘—–•‹†‡†‹ƒƒŽ‘‰™‹–Š•—’’Ž‹‡•–‘Ȁˆ”‘•Ǥ
Ȉ ™‹‰ –‘ •Š‘”–…‘‹‰• ‹ ’”‡˜‹‘—• ”‡‰‹‡ Ž‹‡ …ƒ•…ƒ†‹‰ ‡ˆˆ‡…– —†‡” ‡–”ƒŽ ƒŽ‡• ƒš ”‡‰‹‡ǡ 

…ƒ‡‹–‘„‡‹‰Ǥ
Ȉ ‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡•ƒš…–ǡʹͲͳ͹™‘—Ž†„‡ƒ’’Ž‹…ƒ„Ž‡‹–Š‡‹‘‡””‹–‘”‹‡•‡š…‡’–
‡ŽŠ‹ƒ†—†—…Š‡””›Ǥ
Ȉ ƒ”‹‘—• ’”‘˜‹•‹‘• ‘ˆ –Š‡ ‡–”ƒŽ
‘‘†• ƒ† ‡”˜‹…‡• ƒš …–ǡ ʹͲͳ͹ ƒ• …‘–ƒ‹‡† ‹ …– •ŠƒŽŽ ƒ’’Ž› –‘
‹‘‡””‹–‘”‹‡•Ǥ
Ȉ Š‡
ȋ‘’‡•ƒ–‹‘–‘–ƒ–‡•Ȍ…–ǡʹͲͳ͹’”‘˜‹†‡•ˆ‘”ƒ•…‡”–ƒ‹‹‰–Š‡ƒ‘—–‘ˆ…‘’‡•ƒ–‹‘–Šƒ–
•ŠƒŽŽ„‡’ƒ›ƒ„Ž‡–‘•–ƒ–‡•†—”‹‰–Š‡–”ƒ•‹–‹‘’‡”‹‘†‘ˆϐ‹˜‡›‡ƒ”•„›–Š‡‡–”‡‘ƒ……‘—–‘ˆ”‡˜‡—‡
Ž‘••ƒ––”‹„—–ƒ„Ž‡–‘Ž‡˜›‘ˆ
‘‘†•ƒ†‡”˜‹…‡•ƒšǤ
Ȉ Š‡…–’”‘˜‹†‡•ˆ‘”…ƒŽ…—Žƒ–‹‘ƒ†ƒ•…‡”–ƒ‹‡–‘ˆ„ƒ•‡›‡ƒ”ǡ’”‘Œ‡…–‡†‰”‘™–Š”ƒ–‡ǡ…‘’‡•ƒ–‹‘–‘
„‡’ƒ‹†ƒ†–Š‡Ž‹‡Ǥ
Ȉ Š‡”‡•ŠƒŽŽ„‡Ž‡˜‹‡†ƒ…‡••ƒ†…‘ŽŽ‡…–‡†‘–Š‡”‡…‘‡†ƒ–‹‘•‘ˆ–Š‡‘—…‹Žǡˆ‘”–Š‡’—”’‘•‡•‘ˆ
’”‘˜‹†‹‰…‘’‡•ƒ–‹‘–‘–Š‡–ƒ–‡•ˆ‘”Ž‘••‘ˆ”‡˜‡—‡Ǥ

TEST YOURSELF

(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
Multiple Choice Questions (MCQs)
ͳǤ Š‹…Š•‡…–‹‘‘ˆ
…–ʹͲͳ͹†‡ƒŽ•™‹–Š‡”‘ƒ–‡†—’’Ž›ǫ
ƒȌ ‡…–‹‘ʹͲ
„Ȍ ‡…–‹‘ͳ͸
…Ȍ ‡…–‹‘ͷ
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ„Ȍ
ʹǤ Š‡†‹†”‡•‹†‡–‰‹˜‡ƒ••‡––‘
ȋ‘’‡•ƒ–‹‘–‘•–ƒ–‡•Ȍ…–ʹͲͳ͹ǫ
ƒȌ ͳʹ–Š’”‹ŽʹͲͳ͹
„Ȍ ʹ͹–Šƒ”…ŠʹͲͳ͹
…Ȍ ͳ•– —Ž›ʹͲͳ͹
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋƒȌ
796 Lesson 16 Ȉ EP-TL

͵Ǥ Š‹…Šϐ‹ƒ…‹ƒŽ›‡ƒ”‹•–ƒ‡ƒ•„ƒ•‡›‡ƒ”ˆ‘”–Š‡’—”’‘•‡‘ˆ…ƒŽ…—Žƒ–‹‰…‘’‡•ƒ–‹‘ƒ‘—–’ƒ›ƒ„Ž‡–‘
–Š‡•–ƒ–‡•—†‡”
ȋ‘’‡•ƒ–‹‘–‘•–ƒ–‡•Ȍ…–ʹͲͳ͹ǫ
ƒȌ ‹ƒ…‹ƒŽ‡ƒ”ʹͲͳͶǦͳͷ
„Ȍ ‹ƒ…‹ƒŽ‡ƒ”ʹͲͳ͸Ǧͳ͹
…Ȍ ‹ƒ…‹ƒŽ‡ƒ”ʹͲͳͷǦͳ͸
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ…Ȍ
ͶǤ Š‡
–ƒ–‡•–‘™Š‹…Š–Š‡
…–ǡʹͲͳ͹ƒ’’Ž‹‡•ƒ”‡ǣ
ƒȌ ƒ†”ƒƒ†ƒ‰ƒ”ƒ˜‡Ž‹ƒ†ƒƒƒ†‹—
„Ȍ Šƒ†‹‰ƒ”Š
…Ȍ ƒ†ƒŠ
†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ†Ȍ
ͷǤ †˜ƒ…‡—Ž‹‰…ƒ„‡•‘—‰Š–ˆ‘”
ƒȌ Žƒ••‹ϐ‹…ƒ–‹‘‘ˆƒ›‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
„Ȍ ‡–‡”‹ƒ–‹‘‘ˆ–‹‡ƒ†˜ƒŽ—‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•‘”•‡”˜‹…‡•‘”„‘–ŠǢ
…Ȍ †‹••‹„‹Ž‹–›‘ˆ‹’—––ƒš…”‡†‹–‘ˆ–ƒš’ƒ‹†‘”†‡‡‡†–‘Šƒ˜‡„‡‡’ƒ‹†Ǣ
†Ȍ ŽŽ‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ†Ȍ

LIST OF FURTHER READINGS

Ȉ
‘‘†•Ƭ‡”˜‹…‡•ƒšǡƒ™•ǡ‘…‡’–•ƒ†’ƒ…–ƒŽ›•‹•ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽƬƒŒ‡‡˜
ƒŽŠ‘–”ƒǤ
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›Ǥ
Ȉ  …‘’Ž‡–‡ ‰—‹†‡ –‘
‘‘†• Ƭ ‡”˜‹…‡• ƒš ‡ƒ†› ‡…‘‡” ‹  Ƭ  ‘”ƒ–Ǧ Ž‘‘•„—”› Ȃ ”Ǥ ƒŒ‹˜
‰ƒ”™ƒŽƬƒŒ‡‡˜ƒŽŠ‘–”ƒǤ
Lesson 17 Overview of Customs Act
Key Concepts One Learning Objectives
Should Know
To understand
Ȉ ƒ•‹…—•–‘—–›
ȋȌ Ȉ ˜‡”˜‹‡™‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ
Ȉ ‘—–‡”˜ƒ‹Ž‹‰—–› Ȉ ›’‡•‘ˆ—•–‘•—–›
ȋȌ
Ȉ ƒŽ—ƒ–‹‘—Ž‡•
Ȉ
‘‘†•
Ȉ ’‘”–ƒ†š’‘”–”‘…‡†—”‡•
Ȉ ‡”•‘Ǧ‹Ǧ…Šƒ”‰‡
Ȉ —–›”ƒ™„ƒ…
Ȉ Žƒ••‹ϐ‹…ƒ–‹‘
Ȉ —–›”ƒ™„ƒ…
Ȉ ”ƒ•‹–ƒ†
”ƒ•Š‹’‡–
Ȉ ƒ”‡Š‘—•‹‰

Lesson Outline
Ȉ –”‘†—…–‹‘
Ȉ ‡˜›ƒ†…‘ŽŽ‡…–‹‘‘ˆ—•–‘•—–‹‡•
Ȉ ›’‡•‘ˆ—•–‘—–‹‡•
Ȉ Žƒ••‹ϐ‹…ƒ–‹‘ƒ†ƒŽ—ƒ–‹‘‘ˆ‹’‘”–ƒ†‡š’‘”–‰‘‘†•
Ȉ š‡’–‹‘•
Ȉ ˆϐ‹…‡”•‘ˆ…—•–‘•
Ȉ †‹‹•–”ƒ–‹‘‘ˆ—•–‘•ƒ™
Ȉ ’‘”–ƒ†š’‘”–”‘…‡†—”‡•—†‡”—•–‘•ƒ™
Ȉ ”ƒ•’‘”–ƒ–‹‘ƒ†ƒ”‡Š‘—•‹‰
Ȉ —–›”ƒ™„ƒ…
Ȉ ‡ƒ†ƒ†‡…‘˜‡”›
Ȉ ‘ϐ‹•…ƒ–‹‘‘ˆ
‘‘†•ƒ†‘˜‡›ƒ…‡•
Ȉ ‡ˆ—†
Ȉ 
Ȉ 
Ȉ   

798 Lesson 17 Ȉ EP-TL

Regulatory Framework
1. Customs Act, 1962

Chapter No. and Title Sections Content

Ǥ ”‡Ž‹‹ƒ”› ‡…–‹‘ͳ–‘ʹ Š‘”––‹–Ž‡‡š–‡–ƒ†
…‘‡…‡‡–ƒ†‡ϐ‹‹–‹‘•
Ǥ ˆϐ‹…‡”•‘ˆ—•–‘• ‡…–‹‘͵–‘͸ ’’‘‹–‡–ƒ†’‘™‡”•‘ˆ‘ˆϐ‹…‡”•
‘ˆ…—•–‘•
Ǥ ’’‘‹–‡–‘ˆ—•–‘•‘”–•ǡ ‡…–‹‘͹–‘ͳͲ ’’‘‹–‡–•‘ˆ—•–‘•‘”–•ǡ
‹”’‘”–•ǡƒ”‡Š‘—•‹‰•–ƒ–‹‘•‡–…Ǥ ‹”’‘”–•ǡƒ”‡Š‘—•‹‰–ƒ–‹‘•‡–…Ǥ

Ǥ ”‘Š‹„‹–‹‘•‘‹’‘”–ƒ–‹‘ƒ† ‡…–‹‘ͳͳ ‘™‡”•–‘’”‘Š‹„‹–‹’‘”–ƒ†

‡š’‘”–ƒ–‹‘‘ˆ‰‘‘†• ‡š’‘”–‘ˆ‰‘‘†•
Ǥ ‡–‡…–‹‘ ‘ˆ‹ŽŽ‡‰ƒŽŽ› ‹’‘”–‡†‰‘‘†• ‡…–‹‘•ͳͳ–‘ͳͳ
”‘˜‹•‹‘•ˆ‘”‹ŽŽ‡‰ƒŽ‹’‘”–ƒ–‹‘‘ˆ
ƒ†’”‡˜‡–‹‘‘ˆ–Š‡†‹•’‘•ƒŽ–Š‡”‡‘ˆ ‘–‹ϐ‹‡†‰‘‘†•ƒ†’”‡˜‡–‹‘‘ˆ–Š‡
†‹•’‘•ƒŽ–Š‡”‡‘ˆ
Ǥ ”‡˜‡–‹‘‘”‡–‡…–‹‘‘ˆŽŽ‡‰ƒŽ ‡…–‹‘•ͳͳ–‘ͳͳ ”‘˜‹•‹‘•ˆ‘”‹ŽŽ‡‰ƒŽ‡š’‘”–‘ˆ
š’‘”–‘ˆ
‘‘†• •’‡…‹ϐ‹‡†‰‘‘†•
Ǥ ‘™‡”–‘‡š‡’–ˆ”‘–Š‡’”‘˜‹•‹‘• ‡…–‹‘ͳͳ ‘™‡”–‘‡š‡’–
‘ˆŠƒ’–‡”•ƒ†
Ǥ ‡˜›‘ˆǡƒ†š‡’–‹‘ˆ”‘ǡ—•–‘• ‡…–‹‘•ͳʹ–‘ʹͺ Šƒ”‰‡ƒ„Ž‡•‡…–‹‘ǡ˜ƒŽ—ƒ–‹‘‘ˆ
—–‹‡• ‰‘‘†•ǡ‡…‘˜‡”›ƒ†”‡ˆ—†‘ˆ†—–›
Ǥ †‹…ƒ–‹‰ƒ‘—–‘ˆ†—–›‹–Š‡’”‹…‡ Section 28C to 28D ”‹…‡ ‘ˆ ‰‘‘†• ƒ† ‹…‹†‡…‡ ‘ˆ
‘ˆ‰‘‘†•ǡ‡–…Ǥǡˆ‘”’—”’‘•‡‘ˆ”‡ˆ—† †—–›’ƒ••‡†‘–‘–Š‡„—›‡”

Ǥ †˜ƒ…‡—Ž‹‰• ‡…–‹‘ʹͺ–‘ʹͺ ”‘˜‹•‹‘•ˆ‘”ƒ†˜ƒ…‡”—Ž‹‰•—…Šƒ•

ƒ—–Š‘”‹–›ǡƒ’’Ž‹…ƒ–‹‘ǡ’”‘…‡†—”‡ƒ†
’‘™‡”•‘ˆƒ—–Š‘”‹–›
Ǥ ”‘˜‹•‹‘•”‡Žƒ–‹‰–‘…‘˜‡›ƒ…‡• ‡…–‹‘•ʹͻ–‘Ͷ͵ ””‹˜ƒŽ‘”†‡’ƒ”–—”‡‘ˆ‰‘‘†•ǡ
…ƒ””›‹‰‹’‘”–‡†‘”‡š’‘”–‡†‰‘‘†• †‡Ž‹˜‡”›‘ˆ†‡’ƒ”–—”‡ƒ‹ˆ‡•–‘”
‡š’‘”–”‡’‘”–
Ǥ Ž‡ƒ”ƒ…‡‘ˆ‹’‘”–‡†‰‘‘†•ƒ† ‡…–‹‘•ͶͶ–‘ͷͳ Ž‡ƒ”ƒ…‡‘ˆ‹’‘”–ƒ†‡š’‘”–
‡š’‘”–‰‘‘†• ‰‘‘†•‘–Š‡”–Šƒ„›™ƒ›‘ˆ„ƒ‰‰ƒ‰‡
ƒ†’‘•–ƒŽƒ”–‹…Ž‡•Ǥ
Ǥ ƒ›‡–• –Š”‘—‰Š ‡Ž‡…–”‘‹… …ƒ•Š ‡…–‹‘ͷͳƬͷͳ ƒ›‡–‘ˆ†—–›ǡ‹–‡”‡•–ǡ’‡ƒŽ–›ǡ‡–…
Ž‡†‰‡”ƒ†‡Ž‡…–”‘‹…†—–›…”‡†‹–
Ž‡†‰‡”
Ǥ
‘‘†•‹”ƒ•‹– ‡…–‹‘•ͷʹ–‘ͷ͸ ”ƒ•‹–ƒ†–”ƒ••Š‹’‡–‘ˆ‰‘‘†•

Ǥ ƒ”‡Š‘—•‹‰ ‡…–‹‘ͷ͹–‘͹͵ ”‘˜‹•‹‘”‡Žƒ–‹‰–‘’—„Ž‹…ƒ†

’”‹˜ƒ–‡™ƒ”‡Š‘—•‡
Ǥ ”ƒ™„ƒ… ‡…–‹‘•͹Ͷ–‘͹͸ —–›†”ƒ™„ƒ…‘”‡Ǧ‡š’‘”–‘ˆ†—–›
’ƒ‹†‰‘‘†•‘”ƒ–‡”‹ƒŽ—•‡†‹–Š‡
ƒ—ˆƒ…–—”‡‘ˆ‰‘‘†•
 Lesson 17 Ȉ Overview of Customs Act 799

Ǥ ’‡…‹ƒŽ’”‘˜‹•‹‘•”‡‰ƒ”†‹‰ ‡…–‹‘͹͹–‘ͻͲ ’‡…‹ƒŽ’”‘˜‹•‹‘•”‡‰ƒ”†‹‰„ƒ‰‰ƒ‰‡ǡ

„ƒ‰‰ƒ‰‡ǡ‰‘‘†•‹’‘”–‡†‘” ‰‘‘†•‹’‘”–‡†‘”‡š’‘”–‡†„›’‘•–ǡ
‡š’‘”–‡†„›’‘•–ǡƒ†•–‘”‡• ƒ†•–‘”‡•
Ǥ ”‘˜‹•‹‘•”‡Žƒ–‹‰–‘…‘ƒ•–ƒŽ‰‘‘†• ‡…–‹‘ͻͳ–‘ͻͻ ”‘˜‹•‹‘•”‡Žƒ–‹‰–‘…‘ƒ•–ƒŽ‰‘‘†•
ƒ†˜‡••‡Ž•…ƒ””›‹‰…‘ƒ•–ƒŽ‰‘‘†• ƒ†˜‡••‡Ž•…ƒ””›‹‰…‘ƒ•–ƒŽ‰‘‘†•
‘–Š‡”–Šƒ„ƒ‰‰ƒ‰‡ƒ†•–‘”‡•
Ǥ ‡ƒ”…Š‡•ǡ•‡‹œ—”‡ƒ†ƒ””‡•– ‡…–‹‘ͳͲͲ–‘ͳͳͲ ‘™‡”–‘•‡ƒ”…Šǡ‹•’‡…–ǡ‡šƒ‹‡
’‡”•‘•ƒ†•‡‹œ—”‡‘ˆ‰‘‘†•ǡ
†‘…—‡–•ƒ†–Š‹‰•
Ǥ ‘ϐ‹•…ƒ–‹‘‘ˆ‰‘‘†•ƒ†…‘˜‡›ƒ…‡• ‡…–‹‘ͳͳͳ–‘ͳʹ͹ †Œ—†‹…ƒ–‹‘’”‘…‡‡†‹‰•ƒ†
ƒ†‹’‘•‹–‹‘‘ˆ’‡ƒŽ–‹‡• …‘ϐ‹•…ƒ–‹‘‘ˆ‰‘‘†•Ǥ
Ǥ‡––Ž‡‡–‘ˆ…ƒ•‡• ‡…–‹‘•ͳʹ͹–‘ͳʹ͹ ”‘˜‹•‹‘•”‡Žƒ–‹‰–‘‡––Ž‡‡–
‘‹••‹‘
Ǥ ’’‡ƒŽ•ƒ†‡˜‹•‹‘ ‡…–‹‘•ͳˆ ”‘…‡†—”‡ƒ†–‹‡Ž‹‹–•ˆ‘”ƒ’’‡ƒŽ•
†‹‹•–”ƒ–‹‘ ƒ†”‡˜‹•‹‘•
–‘ͳ͵ͳ
Ǥ ˆˆ‡…‡•ƒ†”‘•‡…—–‹‘• ‡…–‹‘ͳ͵ʹ–‘ͳͶͲ ˆˆ‡…‡•ƒ†…‘‰‹œƒ…‡‘ˆ‘ˆˆ‡…‡•

Ǥ ‹•…‡ŽŽƒ‡‘—• ‡…–‹‘ͳͶͳ–‘ͳ͸ͳ ‘˜‡›ƒ…‡•ǡ†—–›†‡ˆ‡”‡–ǡŽ‹…‡•‹‰

‘ˆ—•–‘•Š‘—•‡ƒ‰‡–ǡƒ’’‡ƒ”ƒ…‡„›
ƒ—–Š‘”‹•‡†”‡’”‡•‡–ƒ–‹˜‡ǡ†‡Ž‡‰ƒ–‹‘‘ˆ
’‘™‡”‡–…Ǥ
2. Customs Tariff Act, 1975

INTRODUCTION
—•–‘•—–›‹•ƒ‹†‹”‡…––ƒšǡ‹’‘•‡†—†‡”–Š‡—•–‘•…–ˆ‘”—Žƒ–‡†‹ͳͻ͸ʹǤŠ‡—•–‘•…–ǡͳͻ͸ʹ‹•–Š‡
„ƒ•‹…•–ƒ–—–‡™Š‹…Š‰‘˜‡”•‡–”›‘”‡š‹–‘ˆ†‹ˆˆ‡”‡–…ƒ–‡‰‘”‹‡•‘ˆ˜‡••‡Ž•ǡƒ‹”…”ƒˆ–•ǡ‰‘‘†•ǡ’ƒ••‡‰‡”•‡–…Ǥǡ‹–‘‘”
‘—–•‹†‡–Š‡…‘—–”›ǤŠ‡…–‡š–‡†•–‘™Š‘Ž‡‘ˆ†‹ƒƒ†ǡ•ƒ˜‡ƒ•‘–Š‡”™‹•‡’”‘˜‹†‡†‹–Š‹•…–ǡ‹–ƒ’’Ž‹‡•ƒŽ•‘–‘
ƒ›‘ˆˆ‡…‡‘”…‘–”ƒ˜‡–‹‘–Š‡”‡—†‡”…‘‹––‡†‘—–•‹†‡†‹ƒ„›ƒ›’‡”•‘Ǥ
Š‡ —•–‘• …–ǡ ͳͻ͸ʹǡ ‘– ‘Ž› ”‡‰—Žƒ–‡• –Š‡ Ž‡˜› ƒ† …‘ŽŽ‡…–‹‘ ‘ˆ †—–‹‡•ǡ „—– ƒŽ•‘ǡ •‡”˜‡• ‡“—ƒŽŽ› ‹’‘”–ƒ–
’—”’‘•‡•ǡŽ‹‡ǣ
‹Ȍ ‡‰—Žƒ–‹‘‘ˆ’‘”–•Ƭš’‘”–•
‹‹Ȍ ”‘–‡…–‹‘‘ˆ‘‡•–‹…†—•–”›
‹‹‹Ȍ ”‡˜‡–‹‘‘ˆ•—‰‰Ž‹‰
‹˜Ȍ ‘•‡”˜ƒ–‹‘ƒ†ƒ—‰‡–ƒ–‹‘‘ˆˆ‘”‡‹‰‡š…Šƒ‰‡
Rules & Regulations
Š‡”—Ž‡ƒ‹‰’‘™‡”‹•†‡Ž‡‰ƒ–‡†–‘–Š‡‡–”ƒŽ
‘˜‡”‡–™Š‹Ž‡–Š‡”‡‰—Žƒ–‹‘ƒ‹‰’‘™‡”†‡Ž‡‰ƒ–‡†–‘–Š‡
‡–”ƒŽ‘ƒ”†‘ˆ†‹”‡…–ƒš‡•ƒ†—•–‘•ȋȌǤ
Difference between Rules and Regulations

Parameter Rules Regulations

‘™‡”–‘ƒ‡ ‡…–‹‘ͳͷ͸ ‡…–‹‘ͳͷ͹
—–Š‘”‹–› ‡–”ƒŽ
‘˜‡”‡– ‹• ƒ—–Š‘”‹œ‡† –‘ƒ‡–Š‡”—Ž‡• ‹•–‘–Š‡ƒ‡”‡‰—Žƒ–‹‘•
—”’‘•‡ ‘•—’’‘”––Š‡…– ‘•—’’‘”––Š‡…–ƒ†–Š‡—Ž‡•
 800 Lesson 17 Ȉ EP-TL

‘–‡– ”ƒ•ƒ…–‹‘ƒŽ—‡ǢŠƒ”‰‡ƒ„‹Ž‹–›‘ˆƒ……‡••‘”‹‡•Ƭ‡’ƒ‹”• Š‡ ˆ‘” ‘ˆ ‹ŽŽ ‘ˆ –”›Ǣ •Š‹’’‹‰

Ƭƒ‹–‡ƒ…‡’ƒ”‡ƒ”–•Ǣ‡–‡–‹‘Ƭ‘ϐ‹•…ƒ–‹‘‘ˆ „‹ŽŽǢ„‹ŽŽ‘ˆ‡š’‘”–Ǣ‹’‘”–Ƭ‡š’‘”–

‘‘†•Ǣ
‘‘†• ‡–‹‘‡† ‹ –Š‡ •Š‹’’‹‰ „‹ŽŽ Ȁ ‹ŽŽ ‘ˆ ƒ‹ˆ‡•–Ǣˆ‘”Ƭƒ‡”‘ˆƒ‹‰
š’‘”– „—– ‡‹–Š‡” ‘– ‡š’‘”–‡†  ‡š’‘”–‡† ƒ† ƒ’’Ž‹…ƒ–‹‘ ˆ‘” ”‡ˆ—† ‘ˆ †—–›Ǣ
•—„•‡“—‡–Ž›”‡ǦŽƒ†‡†Ǣ …‘†‹–‹‘• ˆ‘” –”ƒ•Š‹’‡– Ƭ
”‡‘˜ƒŽ ‘ˆ ‰‘‘† ™‹–Š‘—– ’ƒ›‡–
‘ˆ†—–›Ǣƒ‡”‘ˆ…‘†—…–‹‰ƒ—†‹–
‘ˆ †—–› ƒ••‡••‡– ‘ˆ ‹’‘”–‡† Ȁ
‡š’‘”–‡†‰‘‘†•

‡ϐ‹‹–‹‘•ȏ‡…–‹‘ʹȐ
‡…–‹‘ʹ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ…‘–ƒ‹•–Š‡†‡ϐ‹‹–‹‘•‘ˆ˜ƒ”‹‘—•–‡”•—•‡†ƒ–˜ƒ”‹‘—•’Žƒ…‡•‹–Š‡…–Ǥ
Adjudicating Authority: Section 2(1):Ǧ†Œ—†‹…ƒ–‹‰—–Š‘”‹–›‡ƒ•ƒ›ƒ—–Š‘”‹–›…‘’‡–‡––‘’ƒ••ƒ›‘”†‡”
‘”†‡…‹•‹‘—†‡”–Š‹•…–ǡ„—–†‘‡•‘–‹…Ž—†‡–Š‡‘ƒ”†ǡ‘‹••‹‘‡”ȋ’’‡ƒŽ•Ȍ‘”’’‡ŽŽƒ–‡”‹„—ƒŽǤ
Assessment: Section 2(2) :- ‡–‡”‹ƒ–‹‘‘ˆ–Š‡†—–‹ƒ„‹Ž‹–›‘ˆƒ›‰‘‘†•ƒ†–Š‡ƒ‘—–‘ˆ†—–›ǡ–ƒšǡ…‡••‘”ƒ›
‘–Š‡”•—•‘’ƒ›ƒ„Ž‡ǡ‹ˆƒ›ǡ—†‡”–Š‹•…–‘”—†‡”–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷȋŠ‡”‡‹ƒˆ–‡””‡ˆ‡””‡†–‘ƒ•–Š‡
—•–‘•ƒ”‹ˆˆ…–Ȍ‘”—†‡”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ƒ†‹…Ž—†‡•’”‘˜‹•‹‘ƒŽƒ••‡••‡–ǡ•‡ŽˆǦ
ƒ••‡••‡–ǡ”‡Ǧƒ••‡••‡–ƒ†ƒ›ƒ••‡••‡–‹™Š‹…Š–Š‡†—–›ƒ••‡••‡†‹•‹ŽǤ
Baggage: Section 2(3):- …Ž—†‡•—ƒ……‘’ƒ‹‡†„ƒ‰‰ƒ‰‡„—–†‘‡•‘–‹…Ž—†‡‘–‘”˜‡Š‹…Ž‡•Ǥ
Conveyance: Section 2(9)ǣǦ…Ž—†‡•˜‡••‡Ž•ȋ„›•‡ƒȌǡƒƒ‹”…”ƒˆ–ȋ„›ƒ‹”Ȍǡƒ†ƒ˜‡Š‹…Ž‡ȋ„›Žƒ†ȌǤ
Customs Area: Section 2(11) ǣǦ”‡ƒ‘ˆƒ…—•–‘••–ƒ–‹‘‘”ƒ™ƒ”‡Š‘—•‡ƒ†‹…Ž—†‡•ƒ›ƒ”‡ƒ‹™Š‹…Š‹’‘”–‡†
‰‘‘†•‘”‡š’‘”–‰‘‘†•ƒ”‡‘”†‹ƒ”‹Ž›‡’–„‡ˆ‘”‡…Ž‡ƒ”ƒ…‡„›—•–‘•—–Š‘”‹–‹‡•Ǥ
Customs Port: Section 2(12) :Ǧ›’‘”–ƒ’’‘‹–‡†—†‡”…Žƒ—•‡ȋƒȌ‘ˆ•‡…–‹‘͹–‘„‡ƒ…—•–‘•’‘”–ǡƒ†‹…Ž—†‡•
ƒ’Žƒ…‡ƒ’’‘‹–‡†—†‡”…Žƒ—•‡ȋƒƒȌ‘ˆ–Šƒ–•‡…–‹‘–‘„‡ƒ‹Žƒ†…‘–ƒ‹‡”†‡’‘–ȐǤ
Customs Station: Section 2(13) ǣǦ›…—•–‘•’‘”–ǡ…—•–‘•ƒ‹”’‘”–ǡ‹–‡”ƒ–‹‘ƒŽ…‘—”‹‡”–‡”‹ƒŽǡˆ‘”‡‹‰’‘•–
‘ˆϐ‹…‡‘”Žƒ†…—•–‘••–ƒ–‹‘Ǥ
Dutiable Goods: Section 2(14) :- ›‰‘‘†•™Š‹…Šƒ”‡…Šƒ”‰‡ƒ„Ž‡–‘†—–›ƒ†‘™Š‹…Š†—–›Šƒ•‘–„‡‡’ƒ‹†Ǥ
Duty: Section 2(15):- —–›‡ƒ•ƒ†—–›‘ˆ…—•–‘•Ž‡˜‹ƒ„Ž‡—†‡”–Š‹•…–Ǥ
Export: Section 2(18) :- ƒ‹‰‘—–‘ˆ†‹ƒ–‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒǤ
Export Goods: Section 2(19):- ›‰‘‘†•™Š‹…Šƒ”‡–‘„‡–ƒ‡‘—–‘ˆ†‹ƒ–‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒǤ
Exporter : Section 2(20):- š’‘”–‡”ǡ‹”‡Žƒ–‹‘–‘ƒ›‰‘‘†•ƒ–ƒ›–‹‡„‡–™‡‡–Š‡‹”‡–”›ˆ‘”‡š’‘”–ƒ†–Š‡
–‹‡™Š‡–Š‡›ƒ”‡‡š’‘”–‡†ǡ‹…Ž—†‡•ƒ›‘™‡”ǡ„‡‡ϐ‹…‹ƒŽ‘™‡”‘”ƒ›’‡”•‘Š‘Ž†‹‰Š‹•‡Žˆ‘—––‘„‡–Š‡
‡š’‘”–‡”Ǥ
Foreign going Vessel / Aircraft: Section 2(21) :-‡••‡Ž‘”ƒ‹”…”ƒˆ–ˆ‘”…ƒ””‹ƒ‰‡‘ˆ‰‘‘†•Ȁ’ƒ••‡‰‡”•„‡–™‡‡ƒ›
’‘”–Ȁƒ‹”’‘”–‹†‹ƒƒ†ƒ›’‘”–Ȁƒ‹”’‘”–‘—–•‹†‡†‹ƒ™Š‡–Š‡”–‘—…Š‹‰ƒ›‹–‡”‡†‹ƒ”›Ž‘…ƒ–‹‘‘”‘–ǡƒ†
‹…Ž—†‡•ǣ
ƒȌ ›ƒ˜ƒŽ˜‡••‡Ž‘ˆƒ›ˆ‘”‡‹‰‰‘˜‡”‡––ƒ‹‰’ƒ”–‹ƒ›ƒ˜ƒŽ‡š‡”…‹•‡•Ǣ
„Ȍ ›˜‡••‡Ž‡‰ƒ‰‡†‹ϐ‹•Š‹‰‘”ƒ›‘–Š‡”‘’‡”ƒ–‹‘•‘—–•‹†‡–Š‡–‡””‹–‘”‹ƒŽ™ƒ–‡”•‘ˆ†‹ƒǢ
…Ȍ ›˜‡••‡Ž‘”ƒ‹”…”ƒˆ–’”‘…‡‡†‹‰–‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒˆ‘”ƒ›’—”’‘•‡™Šƒ–•‘‡˜‡”Ǥ

Goods: Section 2(22):- …Ž—†‡•Ȃ

ƒǤ ˜‡••‡Ž•ǡƒ‹”…”ƒˆ–•ƒ†˜‡Š‹…Ž‡•Ǣ
„Ǥ •–‘”‡•Ǣ
…Ǥ „ƒ‰‰ƒ‰‡Ǣ
 Lesson 17 Ȉ Overview of Customs Act 801

†Ǥ …—””‡…›ƒ†‡‰‘–‹ƒ„Ž‡‹•–”—‡–•Ǣƒ†
‡Ǥ ƒ›‘–Š‡”‹†‘ˆ‘˜ƒ„Ž‡’”‘’‡”–›Ǥ

Import: Section 2(23)ǣǦ”‹‰‹‰‹–‘†‹ƒˆ”‘ƒ’Žƒ…‡‘—–•‹†‡†‹ƒǤ

Import Report: Section 2(24): - ‡’‘”–‘”–Š‡ƒ‹ˆ‡•–”‡“—‹”‡†–‘„‡†‡Ž‹˜‡”‡†—†‡”•‡…–‹‘͵ͲǤ
Imported Goods: Section 2(25)ǣǦ › ‰‘‘†• „”‘—‰Š– ‹–‘ †‹ƒ ˆ”‘ ƒ ’Žƒ…‡ ‘—–•‹†‡ †‹ƒ „—– †‘‡•ǯ– ‹…Ž—†‡

‘‘†•™Š‹…ŠŠƒ˜‡„‡‡…Ž‡ƒ”‡†ˆ‘”Š‘‡…‘•—’–‹‘Ǥ
Importer : Section 2(26) ǣǦ’‘”–‡”ǡ‹”‡Žƒ–‹‘–‘ƒ›‰‘‘†•ǡƒ–ƒ›–‹‡„‡–™‡‡–Š‡‹”‹’‘”–ƒ–‹‘ǡƒ†–Š‡–‹‡
™Š‡–Š‡›ƒ”‡…Ž‡ƒ”‡†ˆ‘”Š‘‡…‘•—’–‹‘ǡ‹…Ž—†‡•ƒ›‘™‡”ǡ„‡‡ϐ‹…‹ƒŽ‘™‡”‘”ƒ›’‡”•‘Š‘Ž†‹‰Š‹•‡Žˆ
‘—––‘„‡–Š‡‹’‘”–‡”Ǥ
India: Section 2(27) :- …Ž—†‡•–Š‡–‡””‹–‘”‹ƒŽ™ƒ–‡”•‘ˆ†‹ƒǤ
Note: Territorial waters extend upto 12 nautical miles from the baseline on the coast of India.
Indian Customs Waters: Section 2(28) :- Š‡™ƒ–‡”•‡š–‡†‹‰‹–‘–Š‡•‡ƒ—’–‘–Š‡Ž‹‹–‘ˆš…Ž—•‹˜‡…‘‘‹…
‘‡ —†‡” •‡…–‹‘ ͹ ‘ˆ –Š‡ ‡””‹–‘”‹ƒŽ ƒ–‡”•ǡ ‘–‹‡–ƒŽ Š‡Žˆǡ š…Ž—•‹˜‡ …‘‘‹… ‘‡ ƒ† ‘–Š‡” ƒ”‹–‹‡
‘‡•…–ǡͳͻ͹͸ǡȋͺͲ‘ˆͳͻ͹͸Ȍƒ†‹…Ž—†‡•ƒ›„ƒ›ǡ‰—ŽˆǡŠƒ”„‘”ǡ…”‡‡‘”–‹†ƒŽ”‹˜‡”Ǥ
Note: Indian Customs Waters extend upto 24 nautical miles from the baseline on the coast of India. It means
an area extended upto 12 nautical miles beyond territorial waters.
Person-in-charge: Section 2(31) :- ‡ƒ•
ȋƒȌ ‹”‡Žƒ–‹‘–‘ƒ˜‡••‡Žǡ–Š‡ƒ•–‡”‘ˆ–Š‡˜‡••‡ŽǢ
ȋ„Ȍ ‹”‡Žƒ–‹‘–‘ƒƒ‹”…”ƒˆ–ǡ–Š‡…‘ƒ†‡”‘”’‹Ž‘–Ǧ‹Ǧ…Šƒ”‰‡‘ˆ–Š‡ƒ‹”…”ƒˆ–Ǣ
ȋ…Ȍ ‹”‡Žƒ–‹‘–‘ƒ”ƒ‹Ž™ƒ›–”ƒ‹ǡ–Š‡…‘†—…–‘”ǡ‰—ƒ”†‘”‘–Š‡”’‡”•‘Šƒ˜‹‰–Š‡…Š‹‡ˆ†‹”‡…–‹‘‘ˆ–Š‡–”ƒ‹Ǣ
ȋ†Ȍ ‹”‡Žƒ–‹‘–‘ƒ›‘–Š‡”…‘˜‡›ƒ…‡ǡ–Š‡†”‹˜‡”‘”‘–Š‡”’‡”•‘Ǧ‹Ǧ…Šƒ”‰‡‘ˆ–Š‡…‘˜‡›ƒ…‡Ǥ

Prohibited Goods : Section 2(33) ǣǦ›‰‘‘†•ǡ–Š‡‹’‘”–‘”‡š’‘”–‘ˆ™Š‹…Š‹•’”‘Š‹„‹–‡†„›–Š‡—•–‘•…–‘”

ƒ›Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ǡ„—–†‘‡•ǯ–‹…Ž—†‡ƒ›‰‘‘†•ǡ‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡…‘†‹–‹‘••—„Œ‡…––‘
™Š‹…Š–Š‡‰‘‘†•ƒ”‡’‡”‹––‡†–‘„‡‹’‘”–‡†‘”‡š’‘”–‡†Šƒ˜‡„‡‡…‘’Ž‹‡†™‹–ŠǤ
Smuggling: Section 2(39) :- ›ƒ…–‘”‘‹••‹‘™Š‹…Š™‹ŽŽ”‡†‡”•—…Š‰‘‘†•Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘—†‡”•‡…–‹‘
ͳͳͳ‘”ͳͳ͵Ǥ
Warehouse: Section 2(43) :- ’—„Ž‹…™ƒ”‡Š‘—•‡Ž‹…‡•‡†—†‡”•‡…–‹‘ͷ͹‘”ƒ’”‹˜ƒ–‡™ƒ”‡Š‘—•‡Ž‹…‡•‡†—†‡”
•‡…–‹‘ͷͺ‘”ƒ•’‡…‹ƒŽ™ƒ”‡Š‘—•‡Ž‹…‡•‡†—†‡”•‡…–‹‘ͷͺǤ
Warehoused Goods : Section 2(44) :-
‘‘†•†‡’‘•‹–‡†‹ƒ™ƒ”‡Š‘—•‡Ǥ

LEVY & COLLECTION OF CUSTOMS DUTIES

Levy of and Exemption from Customs Duty

‘‘†•„‡…‘‡Ž‹ƒ„Ž‡ˆ‘”‹’‘”–‡š’‘”–†—–›™Š‡
‘‘†•ƒ”‡’‘”–‡†‹–‘†‹ƒš’‘”–‡†‘—–‘ˆ†‹ƒǤ‡˜›
‹•–Š‡•–ƒ‰‡™Š‡”‡–Š‡†‡…Žƒ”ƒ–‹‘‘ˆ•—…ŠŽ‹ƒ„‹Ž‹–›‹•ƒ†‡ƒ†–Š‡’‡”•‘•Ȁ’”‘’‡”–‹‡•‹”‡•’‡…–‘ˆ™Š‹…Š–Š‡†—–›
‹•–‘„‡Ž‡˜‹‡†‹•‹†‡–‹ϐ‹‡†Ǥˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‹••ƒ–‹•ϐ‹‡†–Šƒ–‹–‹•‡…‡••ƒ”›‹–Š‡’—„Ž‹…‹–‡”‡•––‘†‘•‘ǡ
‹–ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ‡š‡’–‰‡‡”ƒŽŽ›‡‹–Š‡”ƒ„•‘Ž—–‡Ž›‘”•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ȋ’”‡Ǧ
…Ž‡ƒ”ƒ…‡Ȍƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹•—…Š‘–‹ϐ‹…ƒ–‹‘ǡ‰‘‘†•‘ˆ–Š‡•’‡…‹ϐ‹‡††‡•…”‹’–‹‘ǡˆ”‘–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ
–Š‡…—•–‘•†—–›Ž‡˜‹ƒ„Ž‡–Š‡”‡‘Ǥ‡š‡’–‹‘‘–‹ϐ‹…ƒ–‹‘…ƒ‘–„‡™‹–Š†”ƒ™ƒ††—–›…ƒ‘–„‡†‡ƒ†‡†
™‹–Š”‡–”‘•’‡…–‹˜‡‡–Š‘†Ǥ
 802 Lesson 17 Ȉ EP-TL

Section 12 ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ‹•–Š‡…Šƒ”‰‹‰•‡…–‹‘ǡ™Š‹…Š‹•–Š‡„ƒ•‹•ˆ‘”Ž‡˜›‘ˆ–ƒšǤ•’‡”•‡…–‹‘
ͳʹǡ…—•–‘•†—–›‹•‹’‘•‡†‘‰‘‘†•‹’‘”–‡†‹–‘‘”‡š’‘”–‡†‘—–‘ˆ†‹ƒƒ•’‡”–Š‡”ƒ–‡•’”‘˜‹†‡†‹
—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷ‘”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡ǤŠ‹•…ƒ„‡ƒƒŽ›œ‡†ƒ•„‡Ž‘™ǣ
Ȉ —•–‘•†—–›‹•Ž‡˜‹‡†‘‰‘‘†•™Š‡”‡•—…Š‰‘‘†•ƒ”‡‹’‘”–‡†‹–‘‘”‡š’‘”–‡†‘—–‘ˆ†‹ƒǤ
Ȉ ‡˜›‹••—„Œ‡…––‘‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•…–‘”ƒ›‘–Š‡”Žƒ™Ǥ
Ȉ Š‡”ƒ–‡•‘ˆƒ•‹…—•–‘—–›ƒ”‡•’‡…‹ϐ‹‡†—†‡”–Š‡ƒ”‹ˆˆ…–ǡͳͻ͹ͷ‘”ƒ›‘–Š‡”ƒ™Ǥ
Ȉ ˜‡‰‘‘†•„‡Ž‘‰‹‰–‘
‘˜‡”‡–ƒ”‡•—„Œ‡…––‘Ž‡˜›ǡ–Š‘—‰Š–Š‡›ƒ›„‡‡š‡’–‡†„›‘–‹ϐ‹…ƒ–‹‘ȋ•ȌǤ

Customs Tariff Act, 1975 has two schedules:

Schedule I: ƒ”‹ˆˆ”ƒ–‡•ˆ‘”‹’‘”–‡†‰‘‘†•‘™ƒ•’‘”–ƒ”‹ˆˆǢƒ†
Schedule II: ƒ”‹ˆˆ”ƒ–‡•ˆ‘”‡š’‘”–‡†‰‘‘†•‘™ƒ•š’‘”–ƒ”‹ˆˆǤ
TYPES OF CUSTOMS DUTIES
Import Duty
a) Basic Customs Duty (BCD)
‹Ȍ ‡˜‹‡†ƒ•ƒ’‡”…‡–ƒ‰‡‘ˆ˜ƒŽ—‡ƒ•†‡–‡”‹‡†—†‡”•‡…–‹‘ͳͶȋͳȌǤ
‹‹Ȍ ‘—Ž†„‡Ž‡˜‹‡†ƒ–Dz–ƒ†ƒ”†dzDz”‡ˆ‡”‡–‹ƒŽƒ–‡•dzȋ™Š‡”‡‹’‘”–‡†ˆ”‘ƒ’”‡ˆ‡”‡–‹ƒŽƒ”‡ƒƒ•ƒ›
„‡•’‡…‹ϐ‹‡†„›–Š‡
‘˜‡”‡–ȌǤ
‹‹‹Ȍ —• ‹• ‘ –Š‡ ’‡”•‘ ȋ‘™‡”Ȍ –‘ •—„•–ƒ–‹ƒ–‡ ™‹–Š –Š‡ •—’’‘”–‹‰ ‡˜‹†‡…‡ –Šƒ– –Š‡ ‰‘‘†• ƒ”‡
…Šƒ”‰‡ƒ„Ž‡™‹–Šƒ’”‡ˆ‡”‡–‹ƒŽ”ƒ–‡‘ˆ†—–›Ǥ
b) Additional Customs Duty / Countervailing Duty (CVD)
‹Ȍ –‹•‡“—‹˜ƒŽ‡––‘–Š‡ƒ‘—–‘ˆ‡š…‹•‡†—–›‘Ž‹‡‰‘‘†•ƒ—ˆƒ…–—”‡†Ȁ’”‘†—…‡†‹†‹ƒǤ
‹‹Ȍ †‡” –Š‡
 ”‡‰‹‡ǡ –Š‹• †—–› ‹• •—„•—‡† —†‡”
 ƒ† ƒ††‹–‹‘ƒŽ †—–› Ȁ 
 ‹• ’ƒ›ƒ„Ž‡ ‘
ƒ••‡••ƒ„Ž‡˜ƒŽ—‡’Ž—•„ƒ•‹……—•–‘•†—–›Ǥ
‹‹‹Ȍ …ƒ•‡‘ˆƒŽ…‘Š‘Ž‹…Ž‹“—‘”ˆ‘”Š—ƒ…‘•—’–‹‘‹•‹’‘”–‡†‹–‘†‹ƒǡ–Š‡•ƒ‡‹••–‹ŽŽ—†‡”
•–ƒ–‡‡š…‹•‡™Š‹…ŠŠƒ•‘–„‡‡•—„•—‡†—†‡”
ǤŠ‡”‡ˆ‘”‡ǡ
‹•‘–Ž‡˜‹ƒ„Ž‡—†‡”’‘”–Ǥ
‹˜Ȍ …ƒ•‡‹™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•ƒ”‡‹–Š‡ƒ–—”‡‘ˆ’‘”–‡†
‘‘†•ǡ™Š‹…ŠŠƒ˜‡„‡‡–ƒš‡†ƒ†Šƒ˜‡
„‡‡…‘•—‡†‹–Š‡ƒ—ˆƒ…–—”‡‘ˆ‘—–™ƒ”†–ƒšƒ„Ž‡•—’’Ž‹‡•ǡ’—–ƒš”‡†‹–‹•ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡
‡š–‡–‘ˆ
’ƒ‹†Ǥ
c) Additional Duty / Special Additional Duty (SAD)
‹Ȍ –—•‡†–‘„‡Ž‡˜‹‡†–‘‘ˆˆ•‡––Š‡ƒŽ‡•ƒšȀǤ
‹‹Ȍ ‘™‡˜‡”ǡ–Š‹•Šƒ•‘™„‡‡•—„•—‡†—†‡”
ƒ†ƒ••—…Š‹•Ž‡˜‹ƒ„Ž‡‘Ž›‘‹’‘”–‡†‰‘‘†•ˆ‘”
™Š‹…Š
‹•‘–ƒ’’Ž‹…ƒ„Ž‡ȋ‡šƒ’Ž‡ǣ‡–”‘Ž‡—”‘†—…–•ȌǤ
 ”‘˜‹•‹‘•—†‡”
”‡‰‹‡ǣ

Basic Customs
Duty
 Lesson 17 Ȉ Overview of Customs Act 803

 Š‡‰‘‘†•‹’‘”–‡†‹–‘†‹ƒǡƒ”‡‘™•—„Œ‡…––‘
ƒ†‘–‘”Ǥ‘™‡˜‡”ǡ’‡–”‘Ž‡—‹•‘—–•‹†‡
–Š‡•…‘’‡‘ˆ
ǡƒ†Š‡…‡ƒ†ƒ”‡ƒ’’Ž‹…ƒ„Ž‡–‘–Š‡Ǥ
‹•‘™’ƒ›ƒ„Ž‡‘••‡••ƒ„Ž‡ƒŽ—‡Ϊ
ƒ•‹…—•–‘•—–›Ǥ
 •’‡”•‡…–‹‘͵ȋ͹Ȍ‘ˆ–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷǡƒ›ƒ”–‹…Ž‡™Š‹…Š‹•‹’‘”–‡†‹–‘†‹ƒ•ŠƒŽŽǡ‹ƒ††‹–‹‘ǡ
„‡Ž‹ƒ„Ž‡–‘‹–‡‰”ƒ–‡†–ƒšƒ–•—…Š”ƒ–‡ǡƒ•‹•Ž‡˜‹ƒ„Ž‡—†‡”•‡…–‹‘ͷ‘ˆ–Š‡–‡‰”ƒ–‡†
‘‘†•ƒ†‡”˜‹…‡•ƒš
…–ǡʹͲͳ͹‘ƒŽ‹‡ƒ”–‹…Ž‡‘‹–••—’’Ž›‹†‹ƒǡ‘–Š‡˜ƒŽ—‡‘ˆ–Š‡‹’‘”–‡†ƒ”–‹…Ž‡ƒ•†‡–‡”‹‡†—†‡”
•‡…–‹‘͵ȋͺȌ‘ˆŠ‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷǤ
d). GST Compensation Cess:
 › ƒ”–‹…Ž‡ ™Š‹…Š ‹• ‹’‘”–‡† ‹–‘ †‹ƒ •ŠƒŽŽǡ ‹ ƒ††‹–‹‘ǡ „‡ Ž‹ƒ„Ž‡ –‘ –Š‡ ‰‘‘†• ƒ† •‡”˜‹…‡• –ƒš
…‘’‡•ƒ–‹‘…‡••ƒ–•—…Š”ƒ–‡ǡƒ•‹•Ž‡˜‹ƒ„Ž‡—†‡”•‡…–‹‘ͺ‘ˆ–Š‡
‘‘†•ƒ†‡”˜‹…‡•ƒšȋ‘’‡•ƒ–‹‘
–‘–ƒ–‡•Ȍ‡••…–ǡʹͲͳ͹‘ƒŽ‹‡ƒ”–‹…Ž‡‘‹–••—’’Ž›‹†‹ƒǡ‘–Š‡˜ƒŽ—‡‘ˆ–Š‡‹’‘”–‡†ƒ”–‹…Ž‡ƒ•
†‡–‡”‹‡† —†‡” •‡…–‹‘ ͵ȋͳͲȌ ‘ˆ Š‡ —•–‘• ƒ”‹ˆˆ …–ǡ ͳͻ͹ͷ ȏ‡…–‹‘ ͵ȋͻȌ ‘ˆ –Š‡ —•–‘• ƒ”‹ˆˆ
…–ǡͳͻ͹ͷȐǤ
e) Protective Duty: ‘”†‡”–‘’”‘–‡…–ƒ›‹†—•–”›‡•–ƒ„Ž‹•Š‡†‹†‹ƒǡƒ†—–›ƒ›„‡‹’‘•‡†‘‹’‘”–‡†
‰‘‘†•‘–Š‡”‡…‘‡†ƒ–‹‘‘ˆƒ”‹ˆˆ‘‹••‹‘ȏ‡…–‹‘͸‘ˆ–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷȐǤ
f) Safeguard Duty: Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›‹’‘•‡•ƒˆ‡‰—ƒ”††—–›‘•’‡…‹ϐ‹‡†‹’‘”–‡†‰‘‘†•ǡ‹ˆ‹–‹•‘ˆ
–Š‡‘’‹‹‘–Šƒ––Š‡‰‘‘†•ƒ”‡„‡‹‰‹’‘”–‡†‹Žƒ”‰‡•…ƒŽ‡ƒ†–Š‡›ƒ”‡…ƒ—•‹‰‹Œ—”›–‘–Š‡‹†—•–”›‹
†‹ƒȏ‡…–‹‘ͺȋͳȌ‘ˆ–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷȐǤ
 Š‹•‹•Ž‡˜‹‡†‘‰‘‘†•‹’‘”–‡†‹–‘†‹ƒǡ™Š‡•—…Š‰‘‘†•ƒ”‡ƒŽ”‡ƒ†›ƒ—ˆƒ…–—”‡†‹†‹ƒǡ„—––Š‡…‘•–•
ƒ”‡ Š‹‰Š‡”ƒ• …‘’ƒ”‡† –‘ ‹’‘”– ’”‹…‡•Ǥ– ‹• Ž‡˜‹‡† –‘ ‡•—”‡ –Šƒ– –Š‡ †‹ƒ ƒ—ˆƒ…–—”‡”• †‘ǯ– •—ˆˆ‡”
‘™‹‰–‘‹’‘”–‘ˆ…Š‡ƒ’‡”‰‘‘†•ˆ”‘‘—–•‹†‡ƒ†–Š‡”‡ˆ‘”‡ƒ‹•–‘…”‡ƒ–‡ƒŽ‡˜‡Ž’Žƒ›‹‰ϐ‹‡Ž†ˆ‘”–Š‡†‹ƒ
ƒ—ˆƒ…–—”‡”•ƒ†‹’‘”–‡”•ǡ–Š‡”‡„›™‹–Š–Š‡‹–‡–‘ˆ•ƒˆ‡‰—ƒ”†‹‰–Š‡ƒ–‹‘ƒŽ‹–‡”‡•–Ǥ
 ”‘˜‹•‹‘ƒŽƒˆ‡‰—ƒ”†—–›ƒ›ƒŽ•‘„‡‹’‘•‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–•—„Œ‡…––‘•‡…–‹‘ͺȋͳȌ‘ˆ–Š‡
—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷ‘–Š‡„ƒ•‹•‘ˆƒ’”‡Ž‹‹ƒ”›†‡–‡”‹ƒ–‹‘–Šƒ–‹…”‡ƒ•‡†‹’‘”–•Šƒ˜‡…ƒ—•‡†
‘” –Š”‡ƒ–‡‡† –‘ …ƒ—•‡ •‡”‹‘—• ‹Œ—”› –‘ ƒ †‘‡•–‹… ‹†—•–”› ȏ‡…–‹‘ ͺȋʹȌ ‘ˆ –Š‡ —•–‘• ƒ”‹ˆˆ
…–ǡͳͻ͹ͷȐǤ
 804 Lesson 17 Ȉ EP-TL

 ƒˆ‡‰—ƒ”† ‡ƒ•—”‡• ‹’‘•‡† —Ȁ• ͺǡ ™Š‹…Š ™‡”‡ ‡ƒ”Ž‹‡” Ž‹‹–‡† –‘ ‹’‘•‹–‹‘ ‘ˆ •ƒˆ‡‰—ƒ”† †—–›ǡ ƒ”‡
‡š’ƒ†‡†„› ‹ƒ…‡…–ǡʹͲʹͲ–‘‹…Ž—†‡–ƒ”‹ˆˆǦ”ƒ–‡“—‘–ƒˆ‹šƒ–‹‘•‘”ƒ›‘–Š‡”‡ƒ•—”‡•ǡƒ•†‡‡‡†
ˆ‹–Ǥ†‡”–ƒ”‹ˆˆǦ”ƒ–‡“—‘–ƒǡƒŽ‘™‡”–ƒ”‹ˆˆ”ƒ–‡‹•‹’‘•‡†‘‹’‘”–•‘ˆƒ‰‹˜‡’”‘†—…–™‹–Š‹ƒ•’‡…‹ˆ‹‡†
“—ƒ–‹–› ƒ† ƒ Š‹‰Š‡” –ƒ”‹ˆˆ ”ƒ–‡ ‘ ‹’‘”–• ‡š…‡‡†‹‰ –Šƒ– “—ƒ–‹–› –‘ ’”‘˜‹†‡ –Š‡ †‡•‹”‡† †‡‰”‡‡ ‘ˆ
‹’‘”–’”‘–‡…–‹‘Ǥ
g) Countervailing Duty on Subsidized Articles: Š‡”‡ƒ›…‘—–”›‘”–‡””‹–‘”›’ƒ›•ǡ„‡•–‘™•ǡ†‹”‡…–Ž›‘”
‹†‹”‡…–Ž›ǡƒ›•—„•‹†›—’‘–Š‡ƒ—ˆƒ…–—”‡‘”’”‘†—…–‹‘–Š‡”‡‹‘”–Š‡‡š’‘”–ƒ–‹‘–Š‡”‡ˆ”‘‘ˆƒ›
ƒ”–‹…Ž‡ ‹…Ž—†‹‰ ƒ› •—„•‹†› ‘ –”ƒ•’‘”–ƒ–‹‘ ‘ˆ •—…Š ƒ”–‹…Ž‡ǡ –Š‡ǡ –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ›ǡ „›
‘–‹ˆ‹…ƒ–‹‘ ‹ –Š‡ ˆˆ‹…‹ƒŽ
ƒœ‡––‡ǡ ‹’‘•‡ ƒ …‘—–‡”˜ƒ‹Ž‹‰ †—–› ȏ‡…–‹‘ ͻȋͳȌ ‘ˆ –Š‡ —•–‘• ƒ”‹ˆˆ
…–ǡͳͻ͹ͷȐǤ
h) Anti-Dumping Duty on dumped articles: Š‡”‡ƒ›ƒ”–‹…Ž‡‹•‡š’‘”–‡†„›ƒ‡š’‘”–‡”‘”’”‘†—…‡”ˆ”‘
ƒ›…‘—–”›‘”–‡””‹–‘”›–‘†‹ƒƒ–Ž‡••–Šƒ‹–•‘”ƒŽ˜ƒŽ—‡ǡ–Š‡ǡ—’‘–Š‡‹’‘”–ƒ–‹‘‘ˆ•—…Šƒ”–‹…Ž‡‹–‘
†‹ƒǡ –Š‡ ‡–”ƒŽ
‘˜‡”‡– ƒ›ǡ „› ‘–‹ϐ‹…ƒ–‹‘ ‹ –Š‡ ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ ‹’‘•‡ ƒ ƒ–‹ Ǧ †—’‹‰ †—–›
ȏ‡…–‹‘ͻȋͳȌ‘ˆ–Š‡—•–‘•ƒ”‹ˆˆ…–ǡͳͻ͹ͷȐǤ

Diagrammatic view of types of customs duties.

 Lesson 17 Ȉ Overview of Customs Act 805

‘…‹ƒŽ‡Žˆƒ”‡—”…Šƒ”‰‡ȋȌ‘‹’‘”–‡†‰‘‘†•ȏ‡…–‹‘ͳͳͲ‘ˆ ‹ƒ…‡…–ǡʹͲͳͺ™Ǥ‡ǤˆǤͲʹǦͲʹǦʹͲͳͺȐ
–‹•ƒ†—–›‘ˆ…—•–‘•Ž‡˜‹‡†ˆ‘”–Š‡’—”’‘•‡‘ˆ–Š‡‹‘‘–Š‡‰‘‘†••’‡…‹ϐ‹‡†‹–Š‡ ‹”•–…Š‡†—Ž‡–‘–Š‡—•–‘•
ƒ”‹ˆˆ…–ǡͳͻ͹ͷǡ„‡‹‰‰‘‘†•‹’‘”–‡†‹–‘†‹ƒǤ–‹•Ž‡˜‹‡†̷ͳͲΨ‘–Š‡ƒ‰‰”‡‰ƒ–‡‘ˆ†—–‹‡•ǡ–ƒš‡•ƒ†…‡••‡•
™Š‹…Š ƒ”‡ Ž‡˜‹‡† ƒ† …‘ŽŽ‡…–‡† „› –Š‡ ‡–”ƒŽ
‘˜‡”‡– —†‡” •‡…–‹‘ ͳʹ ‘ˆ –Š‡ —•–‘• …–ǡ ͳͻ͸ʹǤ – ‹• ‘–
ƒ’’Ž‹…ƒ„Ž‡‘•ƒˆ‡‰—ƒ”††—–›ǡ…‘—–‡”˜ƒ‹Ž‹‰†—–›ǡƒ–‹†—’‹‰†—–›ǡ
ƒ†
‘’‡•ƒ–‹‘…‡••Ǥ
‘ƒ†ƒ†ˆ”ƒ•–”—…–—”‡‡••‘‹’‘”–‡†‰‘‘†•ȏ‡…–‹‘ͳͳͳ‘ˆ ‹ƒ…‡…–ǡʹͲͳͺ™Ǥ‡ǤˆǤͲʹǦͲʹǦʹͲͳͺȐ–‹•Ž‡˜‹‡†ƒ•
†—–›‘ˆ…—•–‘̷”—’‡‡ͺ’‡”Ž‹–”‡‘‘–‘”•’‹”‹–ȋ’‡–”‘ŽȌƒ†Š‹‰Š•’‡‡††‹‡•‡ŽȋȌ‹’‘”–‡†‹–‘†‹ƒˆ‘”–Š‡
’—”’‘•‡‘ˆϐ‹ƒ…‹‰‹ˆ”ƒ•–”—…–—”‡’”‘Œ‡…–•Ǥ
Introduction of Health Cess (Finance Act, 2020)
‹ƒ…‡ …–ǡ ʹͲʹͲ Šƒ• ‹’‘•‡† ƒ ‡ƒŽ–Š ‡•• ‘ ‹’‘”– ‘ˆ ‡†‹…ƒŽ ‡“—‹’‡– ‘ˆ …Žƒ••‹ϐ‹‡† ‹ Ͷ–Š •…Š‡†—Ž‡ ˆ‘”
ƒ—‰‡–‹‰ƒ†ϐ‹ƒ…‹‰Š‡ƒŽ–Š‹ˆ”ƒ•–”—…–—”‡ƒ†”‡Žƒ–‡†•‡”˜‹…‡•Ǥ
Salient features are as under :
Ȉ Š‡ƒ’’Ž‹…ƒ„Ž‡”ƒ–‡‹•ͷΨ‘–Š‡ƒ••‡••ƒ„Ž‡˜ƒŽ—‡‘ˆ–Š‡‹’‘”–‡†‰‘‘†•Ǣ
Ȉ ‡†‹…ƒŽ†‡˜‹…‡•™Š‹…Šƒ”‡‡š‡’–ˆ”‘ƒ•‹…—•–‘•—–›™‘—Ž†‘–„‡•—„Œ‡…–‡†–‘‡ƒŽ–Š‡••Ǣƒ†
Ȉ ”‡†‹–‘ˆ‡ƒŽ–Š‡••‹•‘–ƒ˜ƒ‹Žƒ„Ž‡–‘–Š‡‹’‘”–‡”Ǥ

CLASSIFICATION & VALUATION OF IMPORT AND EXPORT GOODS

Žƒ••‹ϐ‹…ƒ–‹‘
Žƒ••‹ˆ‹…ƒ–‹‘‡ƒ„Ž‡•…ƒ–‡‰‘”‹•‹‰–Š‡‰‘‘†•‹–‘‰”‘—’•Ȁ•—„Ǧ‰”‘—’•ǡ‹‘”†‡”–‘ƒ’’Ž›ƒ•‹‰Ž‡”ƒ–‡‘ˆ†—–›‘
‡ƒ…Š‰”‘—’Ȁ•—„Ǧ‰”‘—’ǤŠ‹•…Žƒ••‹ϐ‹…ƒ–‹‘‹•„ƒ•‡†‘–Š‡…‘…‡’–‘ˆƒ”‘‹•‡†›•–‡‘ˆ‘‡…Žƒ–—”‡ȋȌǤ
‹•ƒ‹–‡”ƒ–‹‘ƒŽŽ›ƒ……‡’–‡†…‘†‹‰•›•–‡ƒ†–Š‡•ƒ‡™ƒ•ˆ‘”—Žƒ–‡†ƒ†–Š‡”‡„›‡—…‹ƒ–‡†—†‡”
–Š‡
‡‡”ƒŽ‰”‡‡‡–‘ƒ”‹ˆˆ•Ƭ”ƒ†‡ȋ
ȌǤ–‹–‡”ƒ–‹‘ƒŽŽ‡˜‡Žǡ–Š‡…Žƒ••‹ˆ‹…ƒ–‹‘‘ˆ‰‘‘†•‹•ƒ•‹š
†‹‰‹–…‘†‹‰•›•–‡„—–†‹ƒˆ‘ŽŽ‘™•ͺ†‹‰‹–…‘†‹‰•›•–‡ǡ™Š‡”‡‹ˆ‹”•––™‘†‹‰‹–”‡’”‡•‡–…Šƒ’–‡”—„‡”ǡ
‡š––™‘†‹‰‹–•”‡’”‡•‡–•Š‡ƒ†‹‰—„‡”ǡ‡š––™‘†‹‰‹–•”‡’”‡•‡–••—„Š‡ƒ†‹‰—„‡”ƒ†Žƒ•––™‘†‹‰‹–•
’”‘†—…–…‘†‡Ǥ
Interpretation Rules under the Customs Tariff Act, 1975

‡‡”ƒŽ—Ž‡ˆ‘”Žƒ••‹ϐ‹…ƒ–‹‘ȏ—Ž‡ͳȐ
Š‡‡••‡…‡‘ˆ–Š‹•”—Ž‡‹•–Šƒ––Š‡”‡ˆ‡”‡…‡–‘–Š‡”—Ž‡•ƒ›„‡ƒ†‡‹…ƒ•‡‘ˆƒ„‹‰—‹–›ǡ–Šƒ–‹•ǡ–Š‡”‡ˆ‡”‡…‡–‘
–Š‡•‹š”—Ž‡•‘ˆ‹–‡”’”‡–ƒ–‹‘‹•‘–”‡“—‹”‡†™Š‡…Žƒ••‹ϐ‹…ƒ–‹‘‘ˆ–Š‡‰‘‘†•‹•’‘••‹„Ž‡‘–Š‡„ƒ•‹•‘ˆ†‡•…”‹’–‹‘
‹–Š‡Š‡ƒ†‹‰ǡ•—„ǦŠ‡ƒ†‹‰‡–…Ǥ
ϐ‹‹•Š‡†”–‹…Ž‡•Ƭ‹š–—”‡•ȏ—Ž‡ʹȐ
ƒȌ ›”‡ˆ‡”‡…‡‹ƒŠ‡ƒ†‹‰–‘ƒƒ”–‹…Ž‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘‹…Ž—†‡ƒ”‡ˆ‡”‡…‡–‘–Šƒ–ƒ”–‹…Ž‡‹ƒ—ϐ‹‹•Š‡†
•–ƒ‰‡–‘‘ǡƒ•Ž‘‰ƒ•‹–Š‡’”‡•‡–•–ƒ‰‡ǡ–Š‡‹…‘’Ž‡–‡ƒ”–‹…Ž‡‡šŠ‹„‹–•–Š‡‡••‡–‹ƒŽ…Šƒ”ƒ…–‡”‘ˆ–Šƒ–ƒ”–‹…Ž‡
‹…‘’Ž‡–‡Ȁϐ‹‹•Š‡†ˆ‘”ǣ
Example ǣƒ”™‹–Š‘—––›”‡•‘”™‹–Š‘—–•‡ƒ–•™‘—Ž†„‡•–‹ŽŽ…‘•–”—‡†ƒ•ƒ”•ǡ„—–‘–ƒ”•™‹–Š‘—–‡‰‹‡•Ǥ
„Ȍ ›”‡ˆ‡”‡…‡‹ƒŠ‡ƒ†‹‰–‘ƒƒ–‡”‹ƒŽ‘”•—„•–ƒ…‡ǡ•ŠƒŽŽ„‡†‡‡‡†–‘‹…Ž—†‡ƒ”‡ˆ‡”‡…‡–‘–Š‡‹š–—”‡•
ƒ†…‘„‹ƒ–‹‘•‘ˆ–Šƒ–ƒ–‡”‹ƒŽȀ•—„•–ƒ…‡™‹–Š‘–Š‡”ƒ–‡”‹ƒŽ•Ȁ•—„•–ƒ…‡•Ǥ
Example ǣƒ–—”ƒŽ”—„„‡”™‘—Ž†‹…Ž—†‡‹–•‹š–—”‡™‹–Š•›–Š‡–‹…‘”‘–Š‡”ˆ‘”•‘ˆ”—„„‡”Ǥ

Žƒ••‹ϐ‹…ƒ–‹‘‘ˆ
‘‘†•…Žƒ••‹ϐ‹ƒ„Ž‡—†‡”‘”‡–Šƒ‘‡Š‡ƒ†ȏ—Ž‡͵Ȑ
ƒȌ Dz’‡…‹ϐ‹…†‡–‹ϐ‹…ƒ–‹‘dzǡ‹Ǥ‡Ǥǡ–Š‡‰‘‘†••ŠƒŽŽ„‡…Žƒ••‹ϐ‹‡†—†‡”–Š‡Š‡ƒ†‹‰™Š‹…Š‹•…Ž‘•‡•––‘–Š‡•’‡…‹ϐ‹…
†‡•…”‹’–‹‘Ǥ
 Example ǣ‹–‡ƒ‹•‘–•‡’ƒ”ƒ–‡Ž›…Žƒ••‹ϐ‹‡†ǡ„—––Š‡…Žƒ••‹ϐ‹…ƒ–‹‘•Š‘—Ž†„‡–‡ƒƒ•–Š‡’”‘†—…–‹•…Ž‘•‡•––‘
–Š‡‘‡—†‡”–Š‡Š‡ƒ†‹‰Dz–‡ƒdzǡ‹–‹•‘Ž›ƒϐŽƒ˜‘—”Ǥ
 806 Lesson 17 Ȉ EP-TL

„Ȍ Dz••‡–‹ƒŽŠƒ”ƒ…–‡””‹…‹’Ž‡dzǡ‹Ǥ‡Ǥǡ‹ˆ…‘’‘•‹–‡‰‘‘†•…ƒ‘–„‡…Žƒ••‹ϐ‹‡†ƒ•’‡”—Ž‡͵ȋƒȌǡ–Š‡ǡ•ŠƒŽŽ„‡
…Žƒ••‹ϐ‹‡†‘–Š‡„ƒ•‹•‘ˆƒ–‡”‹ƒŽȀ•—„•–ƒ…‡–Šƒ–†‡ϐ‹‡•–Š‡‡••‡–‹ƒŽ…Šƒ”ƒ…–‡”Ǥ
Example ǣˆ‘‡‹’‘”–•Dz‹“—‘”
‹ˆ–‡–•dz–Šƒ–Šƒ˜‡„‘–ŠǡŽ‹“—‘”ƒ†‰Žƒ••‡•ǡ‹–•Š‘—Ž†„‡…Žƒ••‹ϐ‹‡†—†‡”–Š‡
Š‡ƒ†‹‰ǡDz‹“—‘”dzǡƒ•–Š‡‡••‡–‹ƒŽ…Šƒ”ƒ…–‡”‘ˆ–Š‡…‘’‘•‹–‡‹–‡‹•–Š‡Ž‹“—‘”‹–•‡Žˆƒ†–Š‡‰Žƒ••‡•ƒ”‡’—”‡
ƒ…‹ŽŽƒ”‹‡•Ǥ
…Ȍ Dzƒ––‡”–Š‡‡––‡””‹…‹’Ž‡dzǡ‹Ǥ‡Ǥǡ™Š‡‰‘‘†•…ƒǯ–„‡…Žƒ••‹ϐ‹‡†—†‡””—Ž‡•͵ȋƒȌ‘”͵ȋ„Ȍǡ–Š‡‰‘‘†•™‘—Ž†„‡
…Žƒ••‹ϐ‹‡† —†‡” –Š‡ Š‡ƒ†‹‰ –Šƒ– ƒ’’‡ƒ”• Žƒ•– ‹ –Š‡ —‡”‹…ƒŽ ‘”†‡” ƒ‘‰•– –Š‘•‡ ™Š‹…Š ‡“—ƒŽŽ› ‡”‹–
…‘•‹†‡”ƒ–‹‘Ǥ
Example ǣ‰‹ˆ–•‡–ǡ™Š‹…ŠŠƒ••‘…•ƒ†–‹‡•ǡ…ƒ„‡…Žƒ••‹ϐ‹‡†—†‡”ƒ›‘ˆ–Š‡ƒ„‘˜‡”—Ž‡•ǡƒ†–Š‡”‡ˆ‘”‡
•Š‘—Ž†„‡…Žƒ••‹ϐ‹‡†ƒ•–‹‡•ȋŠ‡ƒ†‹‰͸ͳͳ͹Ȍ‘˜‡”•‘…•ȋŠ‡ƒ†‹‰͸ͳͳͷȌǤ

‹”‹…‹’Ž‡ȏ—Ž‡ͶȐ
Š‹•”—Ž‡•–ƒ–‡•–Šƒ––Š‡‰‘‘†•™Š‹…Š…ƒ‘–„‡…Žƒ••‹ϐ‹‡†‹ƒ……‘”†ƒ…‡™‹–Š—Ž‡•ͳǡʹ‘”͵ǡ•ŠƒŽŽ„‡…Žƒ••‹ϐ‹‡†—†‡”
–Š‡Š‡ƒ†‹‰™Š‹…Š‹…Ž—†‡•‰‘‘†•–Šƒ–ƒ”‡–Š‡‘•–Dzƒ‹‘”•‹‹Žƒ”dzǤ‡šƒ’Ž‡™‘—Ž†„‡ƒ–‹Ǧ‰Žƒ”‡ϐ‹Ž•—•‡†ˆ‘”
…ƒ”™‹†‘™•ǡ˜‡‡–‹ƒ„Ž‹†•ǡƒŽŽ‘ˆ–Š‡•‡ƒ”‡‘–•‡’ƒ”ƒ–‡Ž›…Žƒ••‹ϐ‹‡†ǡ–Š‡›™‘—Ž†„‡…Žƒ••‹ϐ‹‡†—†‡”–Š‡Š‡ƒ†‹‰
ˆ‘”Dz„—‹Ž†‡”•ǯ™ƒ”‡‘ˆ’Žƒ•–‹…dzǡƒ•–Šƒ–ǯ•–Š‡…Ž‘•‡•––Š‡•‡ϐ‹–‹–‘Ǥ

ƒ•‡•Ȁ‘–ƒ‹‡”•ˆ‘”’ƒ…ƒ‰‹‰‘ˆ‰‘‘†•ȏ—Ž‡ͷȐ

‘‘†•™Š‹…Šƒ”‡‹–Š‡ƒ–—”‡‘ˆ…‘–ƒ‹‡”•Ȁ’ƒ…ƒ‰‡••—…Šƒ•‡…Žƒ…‡„‘š‡•ǡ…ƒ‡”ƒ…ƒ•‡•ǡ—•‹…ƒŽ‹•–”—‡–
…ƒ•‡•ǡ™‹ŽŽ„‡…Žƒ••‹ϐ‹‡†™‹–Š–Š‡•’‡…‹ϐ‹…ƒ”–‹…Ž‡™Š‹…Šƒ”‡‰‡‡”ƒŽŽ›•‘Ž†™‹–Š‹–Š‡•‡’ƒ…ƒ‰‡•Ǥ‘™‡˜‡”ǡ–Š‹•‹•
ƒ’’Ž‹…ƒ„Ž‡–‘…‘–ƒ‹‡”•ǡ™Š‹…Šƒ”‡ϐ‹––‡†ˆ‘”–Š‡ƒ”–‹…Ž‡–Š‡›™‹ŽŽ…‘–ƒ‹ǡƒ”‡•—‹–ƒ„Ž‡ˆ‘”Ž‘‰–‡”—•‡ǡ’”‘–‡…––Š‡
ƒ”–‹…Ž‡™Š‡‘–‹—•‡ǡƒ†ƒ”‡‘ˆƒ‹†‘”ƒŽŽ›•‘Ž†™‹–Š•—…Šƒ”–‹…Ž‡•Ǥ

—„ǦŠ‡ƒ†‹‰•ȏ—Ž‡͸Ȑ
Ž›•—„ǦŠ‡ƒ†‹‰•ƒ––Š‡•ƒ‡Ž‡˜‡Žƒ”‡…‘’ƒ”ƒ„Ž‡Ǥ

Valuation for Customs Duty

ƒŽ—ƒ–‹‘ˆ‘”—•–‘•—–›„‡‰‹•™‹–Š†‡–‡”‹ƒ–‹‘‘ˆDz”ƒ•ƒ…–‹‘ƒŽ—‡dzǤ”ƒ•ƒ…–‹‘ƒŽ—‡‹…Ž—†‡•–Š‡’”‹…‡
’ƒ‹†Ȁ’ƒ›ƒ„Ž‡ƒ•…‘•‹†‡”ƒ–‹‘Ǥ…ƒ•‡‘ˆ–”ƒ•ƒ…–‹‘„‡–™‡‡”‡Žƒ–‡†’ƒ”–‹‡•ǡ•ƒŽ‡–”ƒ•ƒ…–‹‘™‘—Ž†„‡‡šƒ‹‡†
–‘ƒ•…‡”–ƒ‹–Š‡‹ϐŽ—‡…‡‘ˆ”‡Žƒ–‹‘•Š‹’‘–Š‡†‡…Žƒ”‡†˜ƒŽ—‡ǡƒ†™Š‡–Š‡”–Š‡•ƒ‡…‘—Ž†–Š‡„‡ƒ……‡’–‡†ƒ•
–”ƒ•ƒ…–‹‘˜ƒŽ—‡ȋ‹–‡‡†•–‘„‡ƒ–ƒ”ǯ•Ž‡‰–ŠȌǤ
ƒ”–‹‡•ƒ”‡•ƒ‹†–‘„‡”‡Žƒ–‡†™Š‡Ȃ

Š‡›ƒ”‡ˆϐ‹…‡”•Ȁ‹”‡…–‘”•‘ˆ They are legally recognised They are employer and

each other's business partners in business employee

One of them directly /

Any person holds directly / indirectly > 5% of the voting rights /
indirectly controls the other
shares in the other

Where both of them control or are controlled by the same person

 Lesson 17 Ȉ Overview of Customs Act 807

Valuation Rules
Š‡—•–‘•ƒŽ—‡ϐ‹š‡†ƒ•’‡”‡…–‹‘ͳͶ‹•–Š‡˜ƒŽ—‡–Šƒ–™‘—Ž†„‡—•‡†ˆ‘”…ƒŽ…—Žƒ–‹‰–Š‡—•–‘•—–›ƒ›ƒ„Ž‡Ǥ
Š‹•‹•ƒŽ•‘…ƒŽŽ‡†••‡••ƒ„Ž‡ƒŽ—‡Ǥ
”‹–‡”‹ƒˆ‘”†‡…‹†‹‰ƒŽ—‡Ȃ

Rule 3(1)
ƒŽ—‡‘ˆ’‘”–‡†
‘‘†••ŠƒŽŽ„‡–Š‡”ƒ•ƒ…–‹‘ƒŽ—‡ƒ†Œ—•–‡†‹ƒ……‘”†ƒ…‡™‹–Š’”‘˜‹•‹‘•‘ˆ”—Ž‡ͳͲǢ
For Imports
”‹…‡’ƒ‹†Ȁ’ƒ›ƒ„Ž‡ˆ‘”†‡Ž‹˜‡”›ƒ––Š‡–‹‡ƒ†’Žƒ…‡‘ˆ’‘”–ƒ–‹‘ǡ™Š‹…Š‡••‡–‹ƒŽŽ›‹’Ž‹‡•–Šƒ––Š‡’”‹…‡—’–‘
ƒ’‘”–‹†‹ƒ™Š‡‰‘‘†•ƒ”‡‹’‘”–‡†Šƒ•–‘„‡…‘•‹†‡”‡†ȋ‹Ǥ‡ǤǡǤǤ ǤƒŽ—‡ȌǤ
For Exports
”‹…‡’ƒ‹†Ȁ’ƒ›ƒ„Ž‡ˆ‘”†‡Ž‹˜‡”›ƒ––Š‡–‹‡ƒ†’Žƒ…‡‘ˆš’‘”–ƒ–‹‘ǡ™Š‹…Š‡••‡–‹ƒŽŽ›‹’Ž‹‡•–Šƒ––Š‡’”‹…‡—’–‘
ƒ’‘”–‹†‹ƒ™Š‡‰‘‘†•ƒ”‡‡š’‘”–‡†Šƒ•–‘„‡…‘•‹†‡”‡†ȋ‹Ǥ‡Ǥǡ ǤǤǤƒŽ—‡Ȍ
Ȉ ǤǤ Ǥα ǤǤǤΪ‘•–‘ˆ”ƒ•’‘”–ȋ ”‡‹‰Š–Ȍƒ†•—”ƒ…‡Ǥ
Ȉ ”‡‹‰Š––‘„‡–ƒ‡ƒ–ƒ…–—ƒŽ•…ƒ’’‡†–‘ƒƒš‹—‘ˆʹͲΨ‘ˆ ǤǤǤ
Ȉ •—”ƒ…‡–‘„‡–ƒ‡ƒ–ƒ…–—ƒŽ•…ƒ’’‡†–‘ƒƒš‹—‘ˆͳǤͳʹͷΨ‘ˆ ǤǤǤ
Ȉ š…Šƒ‰‡ ”ƒ–‡ ƒ• ƒ’’Ž‹…ƒ„Ž‡ ‘ †ƒ–‡ ‘ˆ ’”‡•‡–ƒ–‹‘ ‘ˆ ƒ •Š‹’’‹‰ „‹ŽŽ ‘” „‹ŽŽ ‘ˆ ‡š’‘”–ǡ ƒ• †‡–‡”‹‡† „›
‡–”ƒŽ‘ƒ”†‘ˆ†‹”‡…–ƒš‡•ȋȌ‘”ƒ•…‡”–ƒ‹‡†‹ƒ‡”†‡–‡”‹‡†„›•Š‘—Ž†„‡…‘•‹†‡”‡†Ǥ
 808 Lesson 17 Ȉ EP-TL

ˆ–Š‡˜ƒŽ—ƒ–‹‘ƒ•ƒ„‘˜‡…ƒ‘–„‡†‡–‡”‹‡†ǡ–Š‡•‡“—‡–‹ƒŽŽ›ǡ–Š‡ˆ‘ŽŽ‘™‹‰”—Ž‡•™‹ŽŽ„‡ƒ’’Ž‹‡†Ǥ
†‡–‹…ƒŽ
‘‘†•Ȁ‘’ƒ”‹•‘‡–Š‘†ȏ—Ž‡ͶȐ
”ƒ•ƒ…–‹‘ƒŽ—‡ȋȌ‘ˆ‹†‡–‹…ƒŽ‰‘‘†•™‹ŽŽ„‡—•‡†‹†‡–‡”‹‹‰–Š‡˜ƒŽ—‡‘ˆ‹’‘”–‡†‰‘‘†•ǡ‘Ž›™Š‡•—…Š
‹†‡–‹…ƒŽ‰‘‘†•ƒ”‡•‘Ž†ƒ––Š‡•ƒ‡…‘‡”…‹ƒŽŽ‡˜‡Žǡƒ†–Š‡•‡‰‘‘†•ƒ”‡•—„•–ƒ–‹ƒŽŽ›–Š‡•ƒ‡“—ƒ–‹–›ƒ•–Š‡
‰‘‘†•„‡‹‰˜ƒŽ—‡†Ǥ‘ˆ‰‘‘†•‡š’‘”–‡†™‘—Ž†„‡„ƒ•‡†‘–Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•‘ˆŽ‹‡‹†ƒ†
“—ƒŽ‹–› ‡š’‘”–‡† ƒ– ‘” ƒ„‘—– –Š‡ •ƒ‡ –‹‡ –‘ –Š‡ •ƒ‡ †‡•–‹ƒ–‹‘ …‘—–”›ǡ ‘” ‹ ƒ„•‡…‡ǡ ƒ‘–Š‡” †‡•–‹ƒ–‹‘
…‘—–”›Ǥ
ƒ’’Ž›‹‰–Š‹•”—Ž‡ǡ‹ˆ‘”‡–Šƒ‘‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡‘ˆ‹†‡–‹…ƒŽ‰‘‘†•‹•ˆ‘—†ǡ–Š‡Ž‘™‡•–•—…Š˜ƒŽ—‡•ŠƒŽŽ„‡
—•‡†–‘†‡–‡”‹‡–Š‡˜ƒŽ—‡‘ˆ‹’‘”–‡†‰‘‘†•Ǥ
‹‹Žƒ”
‘‘†•ˆ‘”’‘”–•ƒ†‘’—–‡†ƒŽ—‡‡–Š‘†ˆ‘”š’‘”–•ȏ—Ž‡ͷȐ
Š‡  ˆ‘” ’‘”–‡†
‘‘†• ™‘—Ž† „‡ „ƒ•‡† ‘ –Šƒ– ‘ˆ –Š‡ •‹‹Žƒ” ‰‘‘†• ȋ‹Ǥ‡Ǥǡ Ž‹‡ …Šƒ”ƒ…–‡”‹•–‹…• Ƭ …‘—–”› ‘ˆ
’”‘†—…–‹‘ȌǤŠ‡‘ˆ‰‘‘†•‡š’‘”–‡†ǡ™‘—Ž†„‡–ƒ‡ƒ–…‘’—–‡†˜ƒŽ—‡ǡ‹Ǥ‡Ǥǡ‘•–‘ˆ”‘†—…–‹‘ΪŠƒ”‰‡•ˆ‘”
†‡•‹‰Ȁ„”ƒ†Ϊ‡ƒ•‘ƒ„Ž‡’”‘ϐ‹–Ǥ
‡•‹†—ƒŽ‡–Š‘†ȏ—Ž‡͸Ȑ
‘”‡š’‘”–•ǡ–Š‡™‘—Ž†–Š‡„‡ƒ””‹˜‡†ƒ–„›”‡ƒ•‘ƒ„Ž‡ƒ†…‘•‹•–‡–‡ƒ•„›—•–‘•ˆϐ‹…‡”Ǥ ‘”’‘”–•ǡ
—Ž‡͹ƒ†ͺǡƒ•„‡Ž‘™™‘—Ž†„‡‹˜‘‡†Ǥ
‡†—…–‹˜‡ƒŽ—‡ȏ—Ž‡͹Ȑ
‹–’”‹…‡ƒ–™Š‹…Š–Š‡‹’‘”–‡†‰‘‘†•ȋ‘”Ȍ‹†‡–‹…ƒŽȋ‘”Ȍ•‹‹Žƒ”‹’‘”–‡†‰‘‘†•ƒ”‡•‘Ž†‹–Š‡‰”‡ƒ–‡•–ƒ‰‰”‡‰ƒ–‡
“—ƒ–‹–›
Less: -‘‹••‹‘ǡ‡ŽŽ‹‰š’‡•‡•ǡƒ†”‘ϐ‹–ƒ†‡ǡ”ƒ•’‘”–Ƭ•—”ƒ…‡Ƭƒš‡•™‹–Š‹†‹ƒǤ
Š‡‰‘‘†•ƒ–‘”ƒ„‘—–•ƒ‡–‹‡…ƒ„‡…‘•‹†‡”‡†ǡ‹ˆ‘–ƒ––Š‡‡ƒ”Ž‹‡•–†ƒ–‡‘ˆ‹’‘”–ƒ–‹‘„—–„‡ˆ‘”‡–Š‡‡š’‹”›
‘ˆͻͲ†ƒ›•ƒˆ–‡”•—…Š‹’‘”–ƒ–‹‘Ǥ
‘’—–‡†ƒŽ—‡ȏ—Ž‡ͺȐ
Š‹•™‘—Ž†„‡–Š‡…‘•–‘ˆƒ–‡”‹ƒŽ•—•‡†‹’”‘†—…‹‰–Š‡‹’‘”–‡†‰‘‘†•ǡ‹…Ž—†‹‰ˆƒ„”‹…ƒ–‹‘…‘•–•ǡƒ†—•—ƒŽ
’”‘ϐ‹–•…‘‡•—”ƒ–‡™‹–Š•ƒŽ‡‘ˆ‰‘‘†•‘ˆ•ƒ‡…Žƒ••‹†‹ƒǡ‹…Ž—†‹‰•’‡…‹ϐ‹…ƒ††‹–‹‘•ƒ•’‡”—Ž‡ͳͲȋ‹Ǥ‡Ǥǡ
•—”ƒ…‡ǡ ”‡‹‰Š–ƒ†ƒ†‹‰Šƒ”‰‡•ȌǤ
Valuation Terminologies
FOB :Š‹•‹•ƒŽ•‘‘™ƒ•Dz ”‡‡‘‘ƒ”†dzDz ”‡‹‰Š–‘‘ƒ”†dzǤ–•‹‰‹ϐ‹‡•–Š‡…‘•–‘ˆ†‡Ž‹˜‡”‹‰–Š‡‰‘‘†•–‘–Š‡
‡ƒ”‡•–’‘”–ƒ†–Š‡”‡ƒˆ–‡”–Š‡—›‡”‹•”‡•’‘•‹„Ž‡–‘•Š‹’ˆ”‘–Š‡”‡–‘–Š‡„—›‡”ǯ•ƒ††”‡••Ǥ
CIF :Š‹•‹•‘™ƒ•Dz‘•–ǡ•—”ƒ…‡Ƭ ”‡‹‰Š–dzƒŽ—‡ǤŠ‹•™‘—Ž†ƒ††‘–Š‡•—”ƒ…‡ƒ† ”‡‹‰Š––‘–Š‡ 
ƒŽ—‡•ǡƒ•‡š’Žƒ‹‡†„‡Ž‘™Ǥ
††‹–‹‘‘ˆ…‘•–‘ˆˆ”‡‹‰Š–‹…ƒ•‡‘ˆ‹’‘”–•ǣ

Mode of Transportation -> By Air Any other mode

…–—ƒŽ ”‡‹‰Š–•…‡”–ƒ‹ƒ„Ž‡ …–—ƒŽ ”‡‹‰Š–Ǣ‘” …–—ƒŽ ”‡‹‰Š–
ʹͲΨ‘ˆ ˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•ǡ
Š‹…Š‡˜‡”‹•Ž‡••
…–—ƒŽ ”‡‹‰Š–‘–•…‡”–ƒ‹ƒ„Ž‡ ʹͲΨ‘ˆ ˜ƒŽ—‡‘ˆ–Š‡‰‘‘†•

††‹–‹‘‘ˆ…‘•–‘ˆ‹•—”ƒ…‡‹…ƒ•‡‘ˆ‹’‘”–•ǣ
If Actual cost of insurance available Actual cost of insurance
If Actual cost of insurance not available 1.125% of the FOB value of the goods
 Lesson 17 Ȉ Overview of Customs Act 809

Cost of Transport @ 20% of Cost of Insurance @ 1.125%

FOB if the actual cost is not of FOB if actual is not
ascertainable ascertainable

Relevant date for rate of duty on -

Imported Goods (Section 15):

Section Types of Goods Relevant Date

ͳͷȋͳȌȋƒȌ
‘‘†•…Ž‡ƒ”‡†ˆ‘”Š‘‡ ƒ–‡’”‡˜ƒ‹Ž‹‰‘–Š‡ǣ
…‘•—’–‹‘—†‡”•‡…–‹‘Ͷ͸
ƒǤ†ƒ–‡‘ˆ’”‡•‡–ƒ–‹‘‘ˆ„‹ŽŽ‘ˆ‡–”›Ǣ‘”
„Ǥ†ƒ–‡‘ˆ‡–”›‹™ƒ”†•‘ˆ–Š‡˜‡••‡ŽȀƒ‹”…”ƒˆ–Ȁ˜‡Š‹…Ž‡
™Š‹…Š‡˜‡”‹•Žƒ–‡”
ͳͷȋͳȌȋ„Ȍ
‘‘†• …Ž‡ƒ”‡† ˆ”‘ƒ ƒ–‡’”‡˜ƒ‹Ž‹‰‘–Š‡†ƒ–‡‘ˆ’”‡•‡–ƒ–‹‘‘ˆšǦ‘†„‹ŽŽ‘ˆ
™ƒ”‡Š‘—•‡—†‡”•‡…–‹‘͸ͺ –”›ˆ‘”Š‘‡…‘•—’–‹‘
ͳͷȋͳȌȋ…Ȍ …ƒ•‡‘ˆƒ›‘–Š‡”‰‘‘†• ƒ–‡’”‡˜ƒ‹Ž‹‰‘–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ†—–›

Exported Goods (Section 16):

Section Types of Goods Relevant Date
ͳ͸ȋͳȌȋƒȌ
‘‘†• ‡–‡”‡† ˆ‘” ‡š’‘”– —†‡” ƒ–‡’”‡˜ƒ‹Ž‹‰‘–Š‡†ƒ–‡‘™Š‹…Š ’”‘’‡” ‘ˆϐ‹…‡”ƒ‡•ƒ
•‡…–‹‘ͷͲ ‘”†‡” ’‡”‹––‹‰ …Ž‡ƒ”ƒ…‡ ƒ† Ž‘ƒ†‹‰ ‘ˆ –Š‡ ‰‘‘†• ˆ‘”
‡š’‘”–ƒ–‹‘—†‡”•‡…–‹‘ͷͳ
Note: ”‘˜‹•‹‘•‘ˆ„‘–Š•‡…–‹‘ͳͷƒ†ͳ͸ƒ”‡‘–ƒ’’Ž‹…ƒ„Ž‡–‘„ƒ‰‰ƒ‰‡ƒ†‰‘‘†•‹’‘”–‡†Ȁ‡š’‘”–‡†„›’‘•–Ǥ
’‡…‹ϐ‹…††‹–‹‘•
Š‡•‡™‘—Ž†‹…Ž—†‡‡š’‡•‡•‹…—””‡†„›–Š‡„—›‡”ƒ†‘–‹…Ž—†‡†‹–Š‡’”‹…‡Ǥ›’ƒ›‡–•ƒ†‡–‘–Š‡•‡ŽŽ‡”
ƒ•ƒ…‘†‹–‹‘‘ˆ•ƒŽ‡Ǥ
Template for Calculation of Import Duties

INR
••‡••ƒ„Ž‡ƒŽ—‡ȋȌ ͳͲͲͲ
ƒ•‹…—•–‘—–›ȋȌ ͳͲͲ ƒ‡ƒ–ͳͲΨ‘ˆ
ƒˆ‡‰—ƒ”†—–› ͵ͲͲ ƒ‡ƒ–͵ͲͲΨ‘ˆ
‘…‹ƒŽ‡Žˆƒ”‡—”…Šƒ”‰‡ȋȌ ͳͲ ƒ‡ƒ–ͳͲΨ‘ˆ
–‹—’‹‰—–› ʹͲͲ
Total ͳ͸ͳͲ

 ʹͺͻǤͺ ƒ‡ͳͺΨ‘ˆ‘–ƒŽ

‘’‡•ƒ–‹‘‡••ȋ
Ȍ ʹͶͳǤͷͲ ƒ‡ͳͷΨ‘ˆ‘–ƒŽ

Total Taxes and Duties 1141.30

810 Lesson 17 Ȉ EP-TL

Illustration 1
•‡–Š‡‹ˆ‘”ƒ–‹‘ƒ’’‡†‡†„‡Ž‘™–‘ϐ‹†‘—––Š‡ƒ••‡••ƒ„Ž‡˜ƒŽ—‡Ǥ
Item No. Description USD
ͳ ‘•–‘ˆƒ…Š‹‡ƒ––Š‡ˆƒ…–‘”›‘ˆ–Š‡š’‘”–‡” ͳ͹ͷͲͲ
ʹ ”ƒ•’‘”–Šƒ”‰‡•ˆ”‘–Š‡•ƒ‹†ˆƒ…–‘”›—–‹Ž–Š‡•‡ƒ’‘”–ˆ‘”‘™ƒ”†•Š‹’‡– ʹͷͲͲ
͵ ƒ†Ž‹‰Šƒ”‰‡•ƒ––Š‡‘”–‘ˆŠ‹’‡– ʹͲͲ
Ͷ —›‹‰‘‹••‹‘’ƒ‹†„›’‘”–‡” ͷͲ
ͷ ”‡‹‰Š–Šƒ”‰‡•—–‹Ž–Š‡†‹ƒ‘”– ʹͷͲͲ
Ž‡ƒ•‡—•‡ƒ‡š…Šƒ‰‡”ƒ–‡‘ˆ̈́ͳα͸͵ǤͺͶ
Solution:
Description USD INR
‘•–‘ˆƒ…Š‹‡ƒ––Š‡ˆƒ…–‘”›‘ˆ–Š‡š’‘”–‡” ͳ͹ǡͷͲͲ
”ƒ•’‘”–Šƒ”‰‡•ˆ”‘–Š‡•ƒ‹†ˆƒ…–‘”›—–‹Ž–Š‡•‡ƒ’‘”–ˆ‘”‘™ƒ”†•Š‹’‡– ʹǡͷͲͲ
ƒ†Ž‹‰Šƒ”‰‡•ƒ––Š‡‘”–‘ˆŠ‹’‡– ʹͲͲ
ǤǤǤƒŽ—‡ ʹͲǡʹͲͲ
•—”ƒ…‡Šƒ”‰‡•̷ͳǤͳʹͷΨ ʹʹ͹
”‡‹‰Š–Šƒ”‰‡• ʹǡͷͲͲ
—›‹‰‘‹••‹‘’ƒ‹†„›’‘”–‡” Ǧ
ǤǤ ǤƒŽ—‡ ʹʹǡͻʹ͹
Assessable Value 22,927 14,63,660
Notes :
1) All costs up to the Port of Shipment will be included in the F.O.B. Value.
2) Insurance Charges shall be added on @ 1.125% of F.O.B. Value as the value of Insurance Charges as it is not
ascertainable.
3) The actual freight charges of USD 2500 are included as it is within the maximum that can be added on is USD
4040 (which is 20% of F.O.B. Value).
4) Buying Commission is not to be included in the computation.

Illustration 2
•Ǥ‹•Šƒ‹’‘”–‡†ʹͷͲͲ‘‡•‘ˆ‰‘‘†•ƒ†ƒ–‡”‹ƒŽ•˜ƒŽ—‡†ƒ–ͷͲ’‡”–‘‡ȋǤǤ ǤȌǤš…Šƒ‰‡ƒ–‡’‡”
‘–‹ϐ‹…ƒ–‹‘ȋȌ™ƒ•̈́ͳα͸͵ǤͺͶǤŠ‡ƒ•‹…—•–‘•—–›™ƒ•…Šƒ”‰‡ƒ„Ž‡̷ͳͲΨƒ†‘˜‡”ƒ†ƒ„‘˜‡ǡ
–Š‡”‡™ƒ•ƒƒ–‹Ǧ†—’‹‰†—–›Ž‡˜‹‡†‘–Š‡‰‘‘†•ǡ™Š‹…Š™ƒ•–Š‡†‹ˆˆ‡”‡–‹ƒŽ„‡–™‡‡–Š‡ƒ‘—–•‘…ƒŽ…—Žƒ–‡†
ƒ•–Š‡ƒ†‡†ƒŽ—‡…ŽǤƒ•‹…—•–‘•—–›ƒ†‡••‹•ͳͲͲǡͲͲǡͲͲͲȀǦǤƒŽ…—Žƒ–‡–Š‡–‹Ǧ—’‹‰—–›Ǥ
Solution:
Description Tonnes Rate USD INR
ǤǤ ǤƒŽ—‡ ʹǡͷͲͲ ͷͲ ͳǡʹͷǡͲͲͲ ͹ͻǡͺͲǡͲͲͲ
••‡••ƒ„Ž‡ƒŽ—‡ ͹ͻǡͺͲǡͲͲͲ
ƒ•‹…—•–‘—–›ȋȌ̷ͳͲΨ ͹ǡͻͺǡͲͲͲ
Lesson 17 Ȉ Overview of Customs Act 811

‘…‹ƒŽ‡Žˆƒ”‡‡••̷ͳͲΨ‘ˆ ͹ͻǡͺͲͲ
ƒ†‡†ƒŽ—‡ ͺͺǡͷ͹ǡͺͲͲ
ƒ†‡†˜ƒŽ—‡ƒ•’‡”‘–‹ϐ‹…ƒ–‹‘ ͳǡͲͲǡͲͲǡͲͲͲ
–‹—’‹‰†—–› ͳͳǡͶʹǡʹͲͲ
Note ǣ–‹Ǧ—’‹‰†—–›‹•Ž‡˜‹‡†–‘’”‘‘–‡–Š‡Ž‘…ƒŽ‹†—•–”›ƒ†–‘…—”„‹’‘”–•ǡƒ†–‘‡•—”‡–Šƒ–†‹ƒ‹•
‘–—•‡†ƒ•ƒ†—’‹‰‰”‘—†ǡ™Š‹…Š…‘—Ž†‘–Š‡”™‹•‡Šƒ˜‡•‡”‹‘—•”‡’‡”…—••‹‘•‘–Š‡‡…‘‘‹…‰”‘™–Š‘ˆ
–Š‡ƒ–‹‘ǤŠ‹•–‹Ǧ†—’‹‰†—–›‹•…‘–‹—‡†‡˜‡—†‡”–Š‡
”‡‰‹‡Ǥ

Illustration 3
‹’‘”–•ƒƒ•ƒŽƒ‹–‘†‹ƒƒ†–Š‡ǤǤ ˜ƒŽ—‡‹•ͷͲͲȀǦǤŠ‡”ƒ–‡•‘ˆ–ƒšˆ‘”ƒƒ•ƒŽƒȋ‘†‡
ʹͳͲ͸ͻͲʹͲȌƒ”‡ƒ•‹…—•–‘•—–›͵͹ǤͷΨǢ
ʹͺΨƒ†‘’‡•ƒ–‹‘‡••͸ͲΨǤ
‘’—–‡‘–ƒŽ’‘”–—–›Ǥ
Solution:
Description INR
 ƒŽ—‡ ͷͲͲ
••‡••ƒ„Ž‡ƒŽ—‡ȋȌ ͷͲͲ
ƒ•‹…—•–‘†—–›̷͵͹ǤͷΨ ͳͺͺ 
‘…‹ƒŽ‡Žˆƒ”‡‡••̷ͳͲΨ‘ˆ ͳͺǤͺ 
ΪΪ‡••αͷͲͲΪͳͺͺΪͳͺǤͺα͹Ͳ͸Ǥͺ

̷ʹͺΨ ͳͻ͹ǤͻͲ 
‘’‡•ƒ–‹‘‡••̷͸ͲΨ ͶʹͶǤͲͺ 
Total Import duty payable(A+B+C+D) 828.78

Total Value including Import Duty 1328.78

‘–‡ǣŠ‡‘–‹ϔ‹‡†”ƒ–‡‘ˆ‡š…Šƒ‰‡‹ˆ‘”…‡ƒ•‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡„‹ŽŽ‘ˆ‡–”›‹•ϔ‹Ž‡†ǡ‹•™Šƒ–™‹ŽŽ„‡
ƒ’’Ž‹‡†ˆ‘”…‘’—–ƒ–‹‘‘ˆƒ••‡••ƒ„Ž‡˜ƒŽ—‡Ǥ‘–‡ƒŽ•‘ǡ–Šƒ––Š‡ƒ„‘˜‡…‡••ǡ‘’‡•ƒ–‹‘‡••‹•Ž‡˜‹ƒ„Ž‡—†‡”

ƒ†Š‡…‡ƒ’’Ž‹…ƒ„Ž‡‘–Š‡•ƒ‡„ƒ•‡Ǣ‹Ǥ‡ǤǡήǡŽ‹‡
Ǥ

Illustration 4
Ȁ•  Š‡‹…ƒŽ• –†Ǥ ‹’‘”–‡† ƒ ƒ…Š‹‡ ˆ”‘  …Ǥ ƒ–  ȋ‘•–‘ȌǤ Š‡ ’”‹…‡ ‘ˆ –Š‡ ƒ…Š‹‡ ™ƒ•
…‘–”ƒ…–‡† ƒ–  ͳʹͷͲͲ ƒ† –Š‡ ƒ…Š‹‡ ™ƒ• •Š‹’’‡† ‘ ͳ•– ‡„”—ƒ”›ǡ ʹͲʹͲǤ ‡ƒ™Š‹Ž‡  Š‡‹…ƒŽ•ǡ
”‡‡‰‘–‹ƒ–‡†ƒ’”‹…‡”‡†—…–‹‘‘™‹‰–‘–Š‡’ƒ•–”‡Žƒ–‹‘•Š‹’ǡƒ†–Š‹•’”‹…‡”‡†—…–‹‘™ƒ•ƒ‰”‡‡†˜‹†‡ƒ‡Ǧƒ‹Ž
ƒ†ƒˆƒš‘ͳͷ–Š ‡„”—ƒ”›ǡʹͲʹͲǤŠ‡ƒ…Š‹‡ƒ””‹˜‡†‹†‹ƒȋ—„ƒ‹‘”–Ȍ‘ͳ•–ƒ”…ŠǡʹͲʹͲǤ
Š‡ƒ••‡••‹‰ƒ—–Š‘”‹–‹‡•…Žƒ‹‡†–Šƒ––Š‡†—–›™‘—Ž†„‡’ƒ›ƒ„Ž‡„ƒ•‹•–Š‡”‹‰‹ƒŽ‘–”ƒ…–‡†’”‹…‡ǡ’”‡Ǧ•Š‹’‡–Ǥ
Ž‡ƒ•‡ƒ†˜‹•‡›‘—”•–ƒ†ƒ•ƒƒš‘•—Ž–ƒ––‘Š‡‹…ƒŽ•–†Ǥ
Solution:
Š‡•–ƒ†–ƒ‡„›–Š‡—•–‘•—–Š‘”‹–‹‡•‹•ˆƒ…–—ƒŽŽ›‹…‘””‡…–ƒ†…ƒ„‡…ŠƒŽŽ‡‰‡†—†‡”–Š‡ƒ™ǤŠ‡
„ƒ•‹… ”‡ƒ•‘ ‹• –Šƒ– –Š‡ ”ƒ•ƒ…–‹‘ ƒŽ—‡ ‹• …‘•‹†‡”‡† ƒ– –Š‡ –‹‡ ƒ† ’Žƒ…‡ ‘ˆ ‹’‘”–ƒ–‹‘Ǥ ‡…‡ǡ ‹– ™ƒ•
…‘–‡†‡†–Šƒ––Š‡’‘”–‹•…‘’Ž‡–‡‘Ž›™Š‡–Š‡
‘‘†•„‡…‘‡ƒ’ƒ”–‘ˆ–Š‡‘—–”›Ǥ‡”‡ǡ‹–Š‡’”‡•‡–
…ƒ•‡ǡ –Š‡ ’”‹…‡ ™ƒ• —–—ƒŽŽ› ”‡˜‹•‡† ™Š‹Ž‡ –Š‡
‘‘†• ™‡”‡ •–‹ŽŽ ‹ –”ƒ•‹–Ǥ ‡…‡ǡ –Š‡ ”‡˜‹•‡† ’”‹…‡ …‘—Ž† „‡
…‘•‹†‡”‡†ˆ‘”ƒ””‹˜‹‰ƒ––Š‡••‡••ƒ„Ž‡ƒŽ—‡ƒ†–Š‡•ƒ‡™ƒ•ƒŽ•‘‡—…‹ƒ–‡†—†‡”–Š‡…ƒ•‡Žƒ™ǣ
—Œƒ”ƒ–
Heavy Chemicals vs.‘‹••‹‘‡”‘ˆ—•–‘•ǡŠ‡†ƒ„ƒ†͸ͶͶͺǤ
812 Lesson 17 Ȉ EP-TL

Illustration 5
ƒŽ…—Žƒ–‡–Š‡–‘–ƒŽ‹’‘”–†—–›’ƒ›ƒ„Ž‡‹ˆǣ
ƒȌ ǤǤǤƒŽ—‡‹•
ͳͺͲͲͲǤ
„Ȍ ”‡‹‰Š–Šƒ”‰‡•‹…—””‡†ȋƒ…–—ƒŽȌƒ”‡
͹ͷͲͲǤ
…Ȍ ‡•‹‰Ƭ‡˜‡Ž‘’‡–Šƒ”‰‡•‹…—””‡†ƒ–ƒ”‡
ʹͷͲͲǤ
†Ȍ ‡ŽŽ‹‰‘‹••‹‘ƒ–†‹ƒ’ƒ‹†–‘ƒŽ‘…ƒŽƒ‰‡–̷ʹΨ‘ˆ ǤǤǤƒŽ—‡Ǥ
‡Ȍ ƒ–‡‘ˆ‹ŽŽ‘ˆ–”›ǣʹͶ–Š…–ʹͲʹͲȋƒ–‡‘ˆƒ•‹…—•–‘•—–›‹•ʹͲΨƒ†š…Šƒ‰‡ƒ–‡ƒ•‘–‹ϐ‹‡†„›
‹•͸ͺ–‘ͳ
ȌǤ
ˆȌ ƒ–‡‘ˆ–”›™ƒ”†ǣʹͲ–Š…–ʹͲʹͲȋƒ–‡‘ˆƒ•‹…—•–‘•—–›‹•ͳͺΨƒ†š…Šƒ‰‡ƒ–‡ƒ•‘–‹ϐ‹‡†
„›‹•͹Ͳ–‘ͳ
ȌǤ
‰Ȍ 
̷ͳͺΨǤ
ŠȌ •—”ƒ…‡Šƒ”‰‡•…‘—Ž†‘–„‡ƒ•…‡”–ƒ‹‡†Ǥ

Solution:
ITEM GBP INR
ǤǤǤ ͳͺǡͲͲͲ
‡•‹‰Ƭ‡˜‡Ž‘’‡– ʹǡͷͲͲ
•—”ƒ…‡ ʹͲʹǤͷ
”‡‹‰Š– ͵ǡ͸ͲͲ
ǤǤ Ǥ ʹͶǡ͵ͲʹǤͷ ͳ͸ǡͷʹǡͷ͹Ͳ
‘…ƒŽ…‘‹••‹‘ ʹͶǡͶͺͲ
ǤǤ ǤƒŽ—‡ȋ†ŒȌ ͳ͸ǡ͹͹ǡͲͷͲ
••‡••ƒ„Ž‡ƒŽ—‡ȋȌ ͳ͸ǡ͹͹ǡͲͷͲ
ƒ•‹…—•–‘—–› ͵ǡ͵ͷǡͶͳͲ 
‘…‹ƒŽ‡Žˆƒ”‡…‡••̷ͳͲΨ ͵͵ǡͷͶͳ 
‘–ƒŽˆ‘”
ȋΪŽŽ—•–‘—–‹‡•Ȍ ʹǡͲͶǡ͸ͲͲͳ
IGST 3,68,280 3,71,963 C
Total Import Duty 7,37,231 7,44,603 A+B+C
Notes:
ƒȌ •—”ƒ…‡‹•–ƒ‡̷ͳǤͳʹͷΨ‘ˆ ǤǤǤ˜ƒŽ—‡ǡƒ•–Š‡…Šƒ”‰‡•ƒ”‡ǯ–ƒ•…‡”–ƒ‹ƒ„Ž‡Ǥ
„Ȍ ”‡‹‰Š–…ƒ„‡–ƒ‡ƒ–ƒ…–—ƒŽ•„—–…ƒ’’‡†–‘ʹͲΨ‘ˆ ǤǤǤ
…Ȍ ‡ŽŽ‹‰‘‹••‹‘‹•’ƒ‹†‹†‹ƒ—’‡‡•–‘Ž‘…ƒŽƒ‰‡–•ƒ’’‘‹–‡†„›‡š’‘”–‡”•–‘—•Š‡”–Š‡‹”•ƒŽ‡•‹
†‹ƒƒ†Š‡…‡‹…Ž—†‡†‹ǤǤ ǤƒŽ—‡Ǥ
†Ȍ Š‡š…Šƒ‰‡ƒ–‡‹ˆ‘”…‡’‡”‘–‹ϐ‹…ƒ–‹‘ǡ‘–Š‡†ƒ–‡™Š‡–Š‡‹ŽŽ‘ˆ–”›‹•’”‡•‡–‡†‹•–‘„‡
…‘•‹†‡”‡†Ǥ
‡Ȍ 
‹•Ž‡˜‹‡†‘••‡••ƒ„Ž‡ƒŽ—‡ΪŽŽ—•–‘•—–‹‡•Ǥ
ˆȌ ‘…‹ƒŽ™‡Žˆƒ”‡‡••‹•Ž‡˜‹‡†‘̷ͳͲΨǤ
Lesson 17 Ȉ Overview of Customs Act 813

Illustration 6
‡–‡”‹‡–Š‡—•–‘•—–›’ƒ›ƒ„Ž‡‹…Ž—†‹‰–Š‡•ƒˆ‡‰—ƒ”††—–›‘ˆʹͲΨǡˆ‘”
‘‘†•™‹–Š••‡••ƒ„Ž‡ƒŽ—‡‘ˆ
ͷͲǡͲͲǡͲͲͲ…‘•‹†‡”‹‰̷ͳͲΨǡ
̷ͳͺΨ
Solution:

Item INR
••‡••ƒ„Ž‡ƒŽ—‡ ͷͲǡͲͲǡͲͲͲ
ƒ•‹…—•–‘—–›Ʈ ͷǡͲͲǡͲͲͲ 
‘…‹ƒŽ‡Žˆƒ”‡—”…Šƒ”‰‡ ͷͲǡͲͲͲ 
ƒˆ‡‰—ƒ”†—–› ͳͲǡͲͲǡͲͲͲ 
‘–ƒŽˆ‘”
ȋΪŽŽ—•–‘—–‹‡•Ȍ ͸ͷǡͷͲǡͲͲͲ

 ͳͳǡ͹ͻǡͲͲͲ 
Total Duty & Taxes payable(A+B+C+D) 27,29,000

Customs Valuation (Determination of Value of Imported Goods) Rules, 2007

—•–‘†—–‹‡•ƒ”‡…ƒŽ…—Žƒ–‡†‘•’‡…‹ϐ‹…‘”ad valorem „ƒ•‹•ǡ‹Ǥ‡Ǥǡ‘–Š‡˜ƒŽ—‡‘ˆ‰‘‘†•ǤŠ‡˜ƒŽ—‡‘ˆ‰‘‘†•‹•
†‡–‡”‹‡†„›—Ž‡͵ȋ‹Ȍ‘ˆ—•–‘•ƒŽ—ƒ–‹‘ȋ‡–‡”‹ƒ–‹‘‘ˆƒŽ—‡‘ˆ’‘”–‡†
‘‘†•Ȍ—Ž‡•ǡʹͲͲ͹ǤŠ‹•
”—Ž‡’‡‰•–Š‡˜ƒŽ—‡‘ˆ‹’‘”–‡†‰‘‘†•ƒ––Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡–Šƒ–Šƒ•„‡‡ƒ†Œ—•–‡†ƒ……‘”†‹‰–‘–Š‡’”‘˜‹•‹‘•
—†‡”—Ž‡ͳͲǤ

…ƒ•‡–Š‡”‡ƒ”‡‘“—ƒ–‹ϐ‹ƒ„Ž‡‘”‘„Œ‡…–‹˜‡†ƒ–ƒ”‡‰ƒ”†‹‰–Š‡˜ƒŽ—ƒ–‹‘ˆƒ…–‘”•ǡ˜ƒŽ—ƒ–‹‘…‘†‹–‹‘•ƒ”‡ǯ–
•ƒ–‹•ϐ‹‡†ǡ‘”–Š‡”‡ƒ”‡†‘—„–•”‡‰ƒ”†‹‰–Š‡ƒ……—”ƒ…›‘”–”—–Š‘ˆ†‡…Žƒ”‡†˜ƒŽ—‡ƒ•’‡”—Ž‡ͳʹ‘ˆƒŽ—ƒ–‹‘—Ž‡•
ʹͲͲ͹ǡ˜ƒŽ—ƒ–‹‘‘ˆ‹–‡•Šƒ•–‘„‡†‘‡–Š”‘—‰Š‘–Š‡”‡ƒ•ƒ•’‡”–Š‡ˆ‘ŽŽ‘™‹‰Š‹‡”ƒ”…Š›ǡ
Ȉ ‘’ƒ”ƒ–‹˜‡ƒŽ—‡‡–Š‘†™Š‹…Š…‘’ƒ”‡•–Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡‘ˆ•‹‹Žƒ”‹–‡•ȋ—Ž‡ͶȌǤ
Ȉ ‘’ƒ”ƒ–‹˜‡ƒŽ—‡‡–Š‘†™Š‹…Š…‘’ƒ”‡•–Š‡–”ƒ•ƒ…–‹‘˜ƒŽ—‡‘ˆ•‹‹Žƒ”‹–‡•ȋ—Ž‡ͷȌǤ
Ȉ ‡†—…–‹˜‡ƒŽ—‡‡–Š‘†™Š‹…Š—•‡•–Š‡•ƒŽ‡’”‹…‡‘ˆ‹–‡‹‹’‘”–‹‰…‘—–”›ȋ—Ž‡͹ȌǤ
Ȉ ‘’—–‡†ƒŽ—‡‡–Š‘†™Š‹…Š—•‡•–Š‡…‘•–•”‡Žƒ–‡†–‘ˆƒ„”‹…ƒ–‹‘ǡƒ–‡”‹ƒŽ•ƒ†’”‘ϐ‹–‹’”‘†—…–‹‘
…‘—–”›ȋ—Ž‡ͺȌǤ
Ȉ ƒŽŽ„ƒ…‡–Š‘†™Š‹…Š‹•„ƒ•‡†‘–Š‡‡ƒ”Ž‹‡”‡–Š‘†•™‹–ŠŠ‹‰Š‡”ϐŽ‡š‹„‹Ž‹–›ȋ—Ž‡ͻȌǤ
 814 Lesson 17 Ȉ EP-TL

EXEMPTIONS UNDER CUSTOMS ACT

ˆ–Š‡‡–”ƒŽ
‘˜‡”‡–‹••ƒ–‹•ϐ‹‡†–Šƒ–‹–‹•‡…‡••ƒ”›‹–Š‡’—„Ž‹…‹–‡”‡•––‘†‘•‘ǡ‹–ƒ›ǡ„›‘–‹ϐ‹…ƒ–‹‘‹–Š‡
ˆϐ‹…‹ƒŽ
ƒœ‡––‡ǡ‡š‡’–‰‡‡”ƒŽŽ›‘”•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ƒ•ƒ›„‡•’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘ǡ™Š‹…Š™‘—Ž†
‡‡†–‘„‡ˆ—Žϐ‹ŽŽ‡†„‡ˆ‘”‡Ȁƒˆ–‡”…Ž‡ƒ”ƒ…‡ǡ‰‘‘†•‘ˆ–Š‡•’‡…‹ϐ‹‡††‡•…”‹’–‹‘ˆ”‘–Š‡™Š‘Ž‡‘”ƒ›’ƒ”–‘ˆ–Š‡†—–›
‘ˆ…—•–‘•Ǥ
–ƒ›ǡ„›•’‡…‹ƒŽ‘”†‡”ǡ‡š‡’–ˆ”‘†—–›ǡƒ›‰‘‘†•ǡ‘™Š‹…Š†—–›‹•Ž‡˜‹ƒ„Ž‡‘Ž›—†‡”‡š…‡’–‹‘ƒŽ…‹”…—•–ƒ…‡•Ǥ
—”–Š‡”ǡ‘†—–›‹•–‘„‡…‘ŽŽ‡…–‡†ǡ‹ˆ–Š‡ƒ‘—–‘ˆ†—–›Ž‡˜‹ƒ„Ž‡‹•Ž‡••–Šƒ‘”‡“—ƒŽ–‘ͳͲͲǤ
‘–Š–Š‡‰‡‡”ƒŽƒ†•’‡…‹ϐ‹…‡š‡’–‹‘•‡–‹‘‡†ƒ„‘˜‡ǡƒ›„‡‰”ƒ–‡†„›’”‘˜‹†‹‰ˆ‘”–Š‡Ž‡˜›‘ˆ†—–›ƒ–ƒ
”ƒ–‡‡š’”‡••‡†‹ƒˆ‘”™Š‹…Š‹•†‹ˆˆ‡”‡–ˆ”‘–Š‡•–ƒ–—–‘”›”ƒ–‡Ǥ
‡š‡’–‹‘‘–‹ϐ‹…ƒ–‹‘…ƒ‘–„‡™‹–Š†”ƒ™ƒ†–Š‡†—–›…ƒ‘–„‡†‡ƒ†‡†™‹–Š”‡–”‘•’‡…–‹˜‡‡ˆˆ‡…–Ǥ

OFFICERS OF CUSTOMS LAW

‘™‡”‘ˆ—•–‘•ˆϐ‹…‡”•
Š‡—•–‘•ˆϐ‹…‡”•ƒ”‡ƒ—–Š‘”‹•‡†–‘ǣ
ƒȌ ‡…Žƒ”‡™ƒ”‡Š‘—•‹‰•–ƒ–‹‘•Ǣ
„Ȍ ŽŽ‘™•‡––‹‰—’‘ˆ™ƒ”‡Š‘—•‡•ȋ—„Ž‹…Ȁ”‹˜ƒ–‡ȌǢ
…Ȍ ‘™‡”–‘•‡ƒ”…Šƒ›˜‡••‡ŽȀ…‘˜‡›ƒ…‡Ȁ’‡”•‘Ǣ
†Ȍ ‘™‡”‘ˆ‡‹œ—”‡‘ˆ
‘‘†•Ǣ
‡Ȍ ‘™‡”–‘””‡•–Ǥ

ADMINISTRATION OF CUSTOMS LAW

Person in Charge : ƒ•–‡”ȋ‹…ƒ•‡‘ˆƒ‡••‡ŽȌǡ‘ƒ†‡”‘”‹Ž‘–ȋ‹…ƒ•‡‘ˆƒƒ‹”…”ƒˆ–Ȍǡ‘†—…–‘”ǡ‰—ƒ”†‘”ƒ›
‘–Š‡” ’‡”•‘ Šƒ˜‹‰ –Š‡ …Š‹‡ˆ †‹”‡…–‹‘ ‘ˆ –Š‡ –”ƒ‹ ȋ‹ …ƒ•‡ ‘ˆ ƒ –”ƒ‹Ȍǡ ”‹˜‡” ‘” ‘–Š‡” ’‡”•‘ ‹ …Šƒ”‰‡ ‘ˆ –Š‡
…‘˜‡›ƒ…‡ȋƒ›‘–Š‡”…‘˜‡›ƒ…‡ȌǤ
Responsibilities of a Person in Charge (PIC)

Submitting the Import / Export Manifest

Ensuring that the conveyance comes through the proper route

Ensuring that the conveyance lands at the appropriate place

Ensure that the Goods are loaded / unloaded only after proper permissions / orders

Š‡’‘”–ƒ‹ˆ‡•–‡ƒ•–Š‡”‡’‘”–™Š‹…Š‹•”‡“—‹”‡†–‘„‡†‡Ž‹˜‡”‡†—†‡”•‡…–‹‘͵Ͳǡ™Š‹…Š•–ƒ–‡•–Šƒ––Š‡ǡ

‹–Š‡…ƒ•‡‘ˆƒ˜‡••‡ŽȀƒƒ‹”…”ƒˆ–ǡ•ŠƒŽŽ†‡Ž‹˜‡”–‘–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ‹’‘”–ƒ‹ˆ‡•––‘–Š‡ƒ””‹˜ƒŽ‘ˆ
˜‡••‡ŽȀƒ‹”…”ƒˆ–ƒ†‹…ƒ•‡‘ˆƒ˜‡Š‹…Ž‡ǡ™‹–Š‹ͳʹŠ‘—”•’‘•––Š‡ƒ””‹˜ƒŽƒ––Š‡…—•–‘••–ƒ–‹‘ǡ‹–Š‡’”‡•…”‹„‡†
ˆ‘”ƒ–Ǥ
Ž•‘ǡ‹–ǯ•‹’‡”ƒ–‹˜‡–‘‘–‡–Šƒ––Š‡‹’‘”–‹•…‘’Ž‡–‡†‘Ž›™Š‡–Š‡‰‘‘†••‘‹’‘”–‡†ƒ”‡…Ž‡ƒ”‡†ˆ‘”Š‘‡
…‘•—’–‹‘Ǥ
 Lesson 17 Ȉ Overview of Customs Act 815

Establishment under Customs

Administration

Types of Ports
ƒȌ ‡ƒ‘”–•Ǣ
„Ȍ ‹”’‘”–•Ǣ
…Ȍ ƒ†—•–‘•–ƒ–‹‘•ȋȌǢ
†Ȍ Žƒ†‘–ƒ‹‡”‡’‘–•ȋȌǢ
‡Ȍ ‘–ƒ‹‡” ”‡‹‰Š––ƒ–‹‘•ȋ Ȍƒ––ƒ…Š‡†–‘’‘”–•Ǥ
 816 Lesson 17 Ȉ EP-TL

Mode of Clearance
ƒȌ ‡‰—Žƒ”ƒ”‰‘Ǣ
„Ȍ ‘—”‹‡”Ǣ
…Ȍ ‘”‡‹‰‘•–ˆϐ‹…‡Ǣ
†Ȍ ƒ‰‰ƒ‰‡Ǥ

IMPORT & EXPORT PROCEDURES UNDER CUSTOMS LAW

Procedure for Import through Sea Route (Cargo Clearance)
For the Carrier
Section 30: ‹Ž‹‰–Š‡’‘”–
‡‡”ƒŽƒ‹ˆ‡•–ȋ
Ȍ’”‹‘”–‘–Š‡ƒ””‹˜ƒŽ‘ˆ–Š‡˜‡••‡ŽǤ

‹•‰‡‡”ƒŽŽ›ϐ‹Ž‡†‘–Š‡„ƒ•‹•‘ˆ‹ŽŽ‘ˆƒ†‹‰Ȁ‹”™ƒ›‹ŽŽƒ†‹•‹••—‡†„›–Š‡ƒ””‹‡”Ǥ–…‘–ƒ‹•†‡–ƒ‹Ž•
ƒ”‘—†–Š‡•Š‹’’‡”ǡ…‘•‹‰‡‡ǡ‘Ǥ‘ˆ’ƒ…ƒ‰‡•ǡ†‡•…”‹’–‹‘‘ˆ‰‘‘†•ǡ†ƒ–‡ǡ˜‡••‡Ž†‡–ƒ‹Ž•‡–…Ǥ
‘–‡ǣ‡…–‹‘•͵ͳ–‘͵Ͷ’”‘Š‹„‹–‹’‘”–‡†‰‘‘†•ˆ”‘„‡‹‰—Ž‘ƒ†‡†ˆ”‘˜‡••‡Ž—–‹Ž–”›‹™ƒ”†•‹•‰”ƒ–‡†
ƒ†‡–‹‘‡†‹–Š‡””‹˜ƒŽƒ‹ˆ‡•–‘”’‘”–‡’‘”–Ǥ
ƒŽŽ–Š‡•‡‹•–ƒ…‡•™‡ϐ‹†–Šƒ––Š‡Ž‹ƒ„‹Ž‹–›–‘†—–›ƒ”‹•‡•ƒ••‘‘ƒ•–Š‡›‡–‡”‡†–Š‡Ǯ–‡””‹–‘”‹ƒŽ™ƒ–‡”•ǯ‘ˆ†‹ƒ
ƒ†ƒ–‡˜‡”›’‘‹–—–‹Ž–Š‡›”‡ƒ‹Ǯ‹’‘”–‡†‰‘‘†•ǯ—’–‘–Š‡’‘‹–™Š‡”‡–Š‡›ƒ”‡–‘’ƒ••ˆ‘”ǮŠ‘‡…‘•—’–‹‘ǯǤ
Section 31ǣ–”›™ƒ”†‰”ƒ–‡†„›–Š‡—•–‘•Ǥ
–ƒ…–•ƒ•’‡”‹••‹‘ˆ‘”—Ž‘ƒ†‹‰–Š‡
‘‘†•ǤŠ‡†ƒ–‡Š‡”‡‹™‘—Ž†„‡…‘•–”—‡†ƒ•–Š‡”‡Ž‡˜ƒ–†ƒ–‡ˆ‘”ƒ””‹˜ƒŽ‘ˆ
‰‘‘†•‹†‹ƒǤ
For the Custodian
Section 45ǣ—•–‘†‹ƒ‹•ƒ’’‘‹–‡†„›–Š‡—•–‘•Ǥ
Š‡…—•–‘†‹ƒ™‘—Ž†„‡”‡•’‘•‹„Ž‡ˆ‘”‡‡’‹‰’”‘’‡””‡…‘”†‘ˆ—Ž‘ƒ†‡†‰‘‘†•ǤŠ‡…—•–‘†‹ƒ‹•ƒŽ•‘”‡•’‘•‹„Ž‡
–‘‡•—”‡–Šƒ––Š‡‰‘‘†•†‘ǯ–Ž‡ƒ˜‡–Š‡…—•–‘•ƒ”‡ƒȋ–Šƒ–‹•…Ž‡ƒ”ƒ…‡Ȍ™‹–Š‘—–’”‘’‡”ƒ—–Š‘”‹•ƒ–‹‘ˆ”‘–Š‡
—•–‘•ˆϐ‹…‡”Ǥ
For the Importer
Section 46:Š‡‹’‘”–‡”‡‡†•–‘•—„‹––Š‡„‹ŽŽ‘ˆ‡–”›ǤŠ‹•‹ŽŽ‘ˆ–”›‡‡†•–‘„‡•‹‰‡†„›–Š‡’‘”–‡”ǤŠ‡
‹ŽŽ‘ˆ–”›…‘–ƒ‹•–Š‡†‡–ƒ‹Ž•‘ˆ‰‘‘†•ƒŽ‘‰™‹–Šǣ
Ȉ ‹ŽŽ‘ˆƒ†‹‰
Ȉ ˜‘‹…‡
Ȉ ƒ…‹‰‹•–
Ȉ ”‘†—…–‹–‡”ƒ–—”‡
Ȉ ‹…‡…‡
Ȉ ’‘”–‡”‹–
Ȉ
†‡…Žƒ”ƒ–‹‘ˆ‘”†—Ž›•‹‰‡†„›–Š‡’‘”–‡”

For the Customs

Š‡—•–‘•—–Š‘”‹–‹‡•‘–‡–Š‡‹ŽŽ‘ˆ–”›„›ƒ••‹‰‹‰ƒ—„‡”ƒ††ƒ–‡•–ƒ’ǤŠ‹•†ƒ–‡‹•–Š‡…‘•–”—‡†
ƒ•–Š‡†ƒ–‡‘ˆ’”‡•‡–ƒ–‹‘‘ˆ‹ŽŽ‘ˆ–”›Ǥ
‘•––Š‡ƒ„‘˜‡’”‘…‡†—”‡•ǡ–Š‡ƒ••‡••‡–ƒ•†‡•…”‹„‡†ƒ„‘˜‡‹•—†‡”–ƒ‡ǡƒ†‘…‡–Š‡ƒ••‡••‡††—–›‹•’ƒ‹†
˜‹†‡ ͸ ŠƒŽŽƒǡ –Š‹• ŠƒŽŽƒ ‹• •—„‹––‡† ƒ• ‡˜‹†‡…‡ ‘ˆ ’ƒ›‡– –‘ –Š‡ —•–‘• ƒ—–Š‘”‹–‹‡•ǡ ƒ† –Š‡ —– ‘ˆ
Šƒ”‰‡”†‡”‹•‹••—‡†ǡƒ†‘–Š‡„ƒ•‹•‘ˆ–Š‹•”†‡”ǡ–Š‡—•–‘†‹ƒƒŽŽ‘™•–Š‡Ž‡ƒ”ƒ…‡‘ˆ
‘‘†•ˆ”‘–Š‡—•–‘•
”‡ƒǤ
 Lesson 17 Ȉ Overview of Customs Act 817

‡—””ƒ‰‡‹•–Š‡…Šƒ”‰‡•Ž‡˜‹‡†„›–Š‡’‘”–ƒ—–Š‘”‹–‹‡•ǡ‹ˆ‘–…Ž‡ƒ”‡†™‹–Š‹͵†ƒ›•‘ˆ—Ž‘ƒ†‹‰Ǥ
Procedure for Export through Sea Route (Cargo Clearance)
For the Carrier
Section 41: ‹Ž‹‰–Š‡
’”‹‘”–‘–Š‡†‡’ƒ”–—”‡‘ˆ–Š‡˜‡••‡ŽǤ
š’‘”–
‡‡”ƒŽƒ‹ˆ‡•–ȋ
Ȍ‹•‰‡‡”ƒŽŽ›ϐ‹Ž‡†‘–Š‡„ƒ•‹•‘ˆ‹ŽŽ‘ˆƒ†‹‰Ȁ‹”™ƒ›‹ŽŽƒ†‹•‹••—‡†„›–Š‡
ƒ””‹‡”Ǥ–…‘–ƒ‹•†‡–ƒ‹Ž•ƒ”‘—†–Š‡•Š‹’’‡”ǡ…‘•‹‰‡‡ǡ—„‡”‘ˆ’ƒ…ƒ‰‡•ǡ†‡•…”‹’–‹‘‘ˆ‰‘‘†•ǡ†ƒ–‡ǡ˜‡••‡Ž
†‡–ƒ‹Ž•‡–…Ǥ
Section 39ǣ–”›—–™ƒ”†‰”ƒ–‡†„›–Š‡—•–‘•Ǥ
–ƒ…–•ƒ•’‡”‹••‹‘ˆ‘”Ž‘ƒ†‹‰–Š‡
‘‘†•ǤŠ‡†ƒ–‡Š‡”‡‹™‘—Ž†„‡…‘•–”—‡†ƒ•–Š‡”‡Ž‡˜ƒ–†ƒ–‡ˆ‘”‡š’‘”–ƒ–‹‘
‘ˆ‰‘‘†•‘—–‘ˆ†‹ƒǤ
For the Exporter
Section 50: Š‡š’‘”–‡”‡‡†•–‘•—„‹––Š‡Š‹’’‹‰‹ŽŽǤŠ‹•Š‹’’‹‰‹ŽŽ‡‡†•–‘„‡•‹‰‡†„›–Š‡š’‘”–‡”Ǥ
Š‡Š‹’’‹‰‹ŽŽ…‘–ƒ‹•–Š‡†‡–ƒ‹Ž•‘ˆ‰‘‘†•ƒŽ‘‰™‹–Šǣ
Ȉ ˜‘‹…‡
Ȉ ƒ…‹‰‹•–
Ȉ ”‘†—…–‹–‡”ƒ–—”‡
Ȉ ‹…‡…‡
Ȉ š’‘”–‡”‹–
Ȉ ‘ˆ–‡šȀ‘–Š‡”…‘’Ž‹ƒ…‡•

For the Customs

Š‡—•–‘•—–Š‘”‹–‹‡•‘–‡–Š‡Š‹’’‹‰‹ŽŽ„›ƒ••‹‰‹‰ƒ—„‡”ƒ††ƒ–‡•–ƒ’ǤŠ‹•†ƒ–‡‹•–Š‡…‘•–”—‡†
ƒ•–Š‡date of presentation of Shipping BillǤ
‘•––Š‡ƒ„‘˜‡’”‘…‡†—”‡•ǡ–Š‡ƒ••‡••‡–ƒ•†‡•…”‹„‡†ƒ„‘˜‡‹•—†‡”–ƒ‡ǡƒ†‘…‡–Š‡ƒ••‡••‡†—–›‹•’ƒ‹†
˜‹†‡͸ŠƒŽŽƒǡ–Š‹•ŠƒŽŽƒ‹••—„‹––‡†ƒ•‡˜‹†‡…‡‘ˆ’ƒ›‡––‘–Š‡—•–‘•ƒ—–Š‘”‹–‹‡•ǡƒ†–Š‡‡–š’‘”–
”†‡”‹•‹••—‡†ǡƒ†’‘•––Šƒ––Š‡Ž‘ƒ†‹‰…ƒ…‘‡…‡Ǥ
TRANSPORTATION & WAREHOUSING
Transit and Transhipment
…‘˜‡›ƒ…‡Ȁ˜‡••‡Žƒ›”‡ƒ…Šƒ’‘”–„—–ƒ›‘–—Ž‘ƒ†–Š‡‰‘‘†•ƒ––Šƒ–’‘”–Ǥ–ƒ›ŠƒŽ–ƒ––Š‡’‘”–ˆ‘”ƒ›
‘–Š‡” ’—”’‘•‡ •—…Š ƒ• ”‡’ƒ‹”•ǡ ”‡’Ž‡‹•Š‡– ‘ˆ •—’’Ž‹‡•ǡ ”‡ˆ—‡ŽŽ‹‰ ‡–…Ǥ …‡ –Š‡ ’—”’‘•‡ ‹• ‘˜‡”ǡ ‹– ƒ› •–ƒ”–
•ƒ‹Ž‹‰–‘–Š‡†‡•–‹ƒ–‹‘’‘”–Ǥ–Š‹•…ƒ•‡–™‘’‘”–•ƒ”‡‹˜‘Ž˜‡†ǣǦ
ͳǤ –Š‡ŠƒŽ–‹‰’‘”–ȋ‘™ƒ•–”ƒ•‹–’‘”–Ȍƒ†
ʹǤ –Š‡†‡•–‹ƒ–‹‘’‘”–ȋ…ƒŽŽ‡†ƒ•’‘”–‘ˆ…Ž‡ƒ”ƒ…‡ȌǤ

—…Šƒ’Š‡‘‡‘‘ˆ–‡’‘”ƒ”›•–ƒ›ƒ–ƒ’‘”–‘–Š‡”–Šƒƒ†‡•–‹ƒ–‹‘’‘”–‹•…ƒŽŽ‡†–”ƒ•‹–Ǥ
–”ƒ•‹–Ǣ–Š‡‰‘‘†•”‡ƒ‹‹–Š‡•ƒ‡˜‡••‡Žƒ†…‘•‡“—‡–Ž›”‡ƒ…Š–Š‡’‘”–‘ˆ…Ž‡ƒ”ƒ…‡Ǥ
–”ƒ•Š‹’‡–ǡŠ‘™‡˜‡”ǡ–Š‡˜‡••‡Žƒˆ–‡””‡ƒ…Š‹‰ƒ‹–‡”‡†‹ƒ–‡’‘”–ǡ–”ƒ•ˆ‡”•–Š‡‰‘‘†•–‘ƒ‘–Š‡”˜‡••‡Žƒ†
–Š‡ •‡…‘† ˜‡••‡Ž ‹–‘ ™Š‹…Š –Š‡ ‰‘‘†• ƒ”‡ –”ƒ•ˆ‡””‡† ȋŽ‘ƒ†‡†Ȍ ˆ”‘ –Š‡ ϐ‹”•– ˜‡••‡Žǡ …ƒ””‹‡• –Š‡ ‰‘‘†• –‘ –Š‡
†‡•–‹ƒ–‹‘’‘”–Ǥ
”ƒ•‹–‘ˆ
‘‘†•™‹–Š‘—–’ƒ›‡–‘ˆ†—–›ȏ‡…–‹‘ͷ͵Ȑ
‡…–‹‘ͷ͵ǣ……‘”†‹‰Ž›ǡƒ›‰‘‘†•‹’‘”–‡†‹ƒ…‘˜‡›ƒ…‡ƒ†‡–‹‘‡†‹–Š‡‹’‘”–ƒ‹ˆ‡•–‘”–Š‡‹’‘”–
”‡’‘”–ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡˆ‘”–”ƒ•‹–‹–Š‡…‘˜‡›ƒ…‡–‘ƒ›’Žƒ…‡‘—–•‹†‡†‹ƒ‘”ƒ›—•–‘••–ƒ–‹‘ƒ›„‡
 818 Lesson 17 Ȉ EP-TL

ƒŽŽ‘™‡†–‘„‡•‘–”ƒ•‹–‡†™‹–Š‘—–’ƒ›‡–‘ˆ†—–›ǡ•—„Œ‡…––‘•—…Š…‘†‹–‹‘•ǡƒ•ƒ›„‡’”‡•…”‹„‡†Ǥ
”ƒ•Š‹’‡–‘ˆ
‘‘†•™‹–Š‘—–’ƒ›‡–‘ˆ†—–›ȏ‡…–‹‘ͷͶȐ
…ƒ•‡ƒ›‰‘‘†•‹’‘”–‡†‹–‘ƒ—•–‘••–ƒ–‹‘ƒ”‡‹–‡†‡†ˆ‘”–”ƒ•Š‹’‡–ǡƒ„‹ŽŽ‘ˆ–”ƒ•Š‹’‡–•ŠƒŽŽ„‡
’”‡•‡–‡†–‘–Š‡’”‘’‡”‘ˆϐ‹…‡”‹–Š‡’”‡•…”‹„‡†ˆ‘”Ǥ
‘™‡˜‡”ǡ™Š‡”‡–Š‡‰‘‘†•ƒ”‡„‡‹‰–”ƒ•Š‹’’‡†—†‡”ƒ‹–‡”ƒ–‹‘ƒŽ–”‡ƒ–›‘”„‹Žƒ–‡”ƒŽƒ‰”‡‡‡–„‡–™‡‡–Š‡

‘˜‡”‡– ‘ˆ †‹ƒ ƒ†

‘˜‡”‡– ‘ˆ ƒ ˆ‘”‡‹‰ …‘—–”›ǡ ƒ †‡…Žƒ”ƒ–‹‘ ˆ‘” –”ƒ•Š‹’‡– ‹•–‡ƒ† ‘ˆ ƒ „‹ŽŽ ‘ˆ
–”ƒ•Š‹’‡–•ŠƒŽŽ„‡’”‡•‡–‡†–‘–Š‡’”‘’‡”‘ˆϐ‹…‡”‹–Š‡’”‡•…”‹„‡†ˆ‘”Ǥ
Š‡”‡ƒ›‰‘‘†•‹’‘”–‡†‹–‘ƒ—•–‘••–ƒ–‹‘ƒ”‡‡–‹‘‡†‹–Š‡’‘”–ƒ‹ˆ‡•–‘”‹’‘”–”‡’‘”–ƒ•–Š‡
…ƒ•‡ ƒ› „‡ǡ ƒ• ˆ‘” –”ƒ•Š‹’‡– –‘ ƒ› ’Žƒ…‡ ‘—–•‹†‡ †‹ƒǡ •—…Š ‰‘‘†• ƒ› „‡ ƒŽŽ‘™‡† –‘ „‡ •‘ –”ƒ•Š‹’’‡†
™‹–Š‘—–’ƒ›‡–‘ˆ†—–›Ǥ
Differences between Transit & Transhipment

Transit Transhipment

‘‘†•”‡ƒ‹‹–Š‡•ƒ‡˜‡••‡Žƒ––Š‡‹–‡”‡†‹ƒ–‡’‘”–
‘‘†•ƒ”‡–”ƒ•ˆ‡””‡†–‘ƒ†‹ˆˆ‡”‡–˜‡••‡Žƒ––Š‡
‹–‡”‡†‹ƒ–‡’‘”–
Ž›‹’‘”–ƒ‹ˆ‡•–Šƒ•–‘„‡•—„‹––‡†ˆ‘”‡–”› ‹ŽŽ‘ˆ”ƒ•Š‹’‡–Ȁ†‡…Žƒ”ƒ–‹‘‹•ƒŽ•‘”‡“—‹”‡†
–‘„‡•—„‹––‡†
‘•—’‡”˜‹•‹‘‹•”‡“—‹”‡†ƒ––Š‡–‡”‡†‹ƒ–‡‘”– ”ƒ•Š‹’‡– ’”‘…‡•• ‹• …‘†—…–‡† —†‡” –Š‡
•—’‡”˜‹•‹‘‘ˆ–Š‡—•–‘•ˆϐ‹…‡”
Š‡•ƒ‡˜‡••‡Ž”‡ƒ…Š‡•–Š‡†‡•–‹ƒ–‹‘’‘”– †‹ˆˆ‡”‡–˜‡••‡Ž”‡ƒ…Š‡•–Š‡†‡•–‹ƒ–‹‘’‘”–

Warehousing
’‘”–‡†‰‘‘†•‡‡†‘–„‡…Ž‡ƒ”‡†ˆ‘”Š‘‡…‘•—’–‹‘‹‡†‹ƒ–‡Ž›‘ƒ””‹˜ƒŽǤˆ‹’‘”–‡”™‹•Š‘”Š‡ƒ›‘–
”‡“—‹”‡–Š‡‰‘‘†•‹‡†‹ƒ–‡Ž›‘”•‘‡–‹‡–‘ƒ˜‘‹††‡—””ƒ‰‡…Šƒ”‰‡•‘”‹–‡†•–‘”‡Ǧ‡š’‘”–‘ˆ•—…Š‹’‘”–‡†
‰‘‘†•‘”ˆ‘”ƒ›‘–Š‡””‡ƒ•‘•ǡŠ‡ƒ›•–‘”‡•—…Š‰‘‘†•‹ƒ”‡Š‘—•‡™‹–Š‘—–’ƒ›‡–‘ˆ‰‘‘†•Ǥƒ”‡Š‘—•‡•
ƒŽŽ‘™‰‘‘†•–‘„‡•–‘”‡†ƒ†–Š—•†‡ˆ‡”‡–‘ˆ†—–›ǤŠ‡
‘‘†•ƒ”‡–‘„‡”‡Ž‡ƒ•‡†ˆ”‘–Š‡ƒ”‡Š‘—•‡ǡ•—„Œ‡…––‘
Dz…Ž‡ƒ”ƒ…‡dzǢ‹Ǥ‡ǤǡǢ’‘•–ƒ••‡••‡–ƒ†’ƒ›‡–‘ˆ—–›Ǥƒ”‡Š‘—•‡ƒ›’—„Ž‹…™ƒ”‡Š‘—•‡Ž‹…‡•‡†—Ȁ•ͷ͹‘”’”‹˜ƒ–‡
™ƒ”‡Š‘—•‡Ž‹…‡•‡†—Ȁ•ͷͺ‘”•’‡…‹ƒŽ™ƒ”‡Š‘—•‡Ž‹…‡•‡†—Ȁ•ͷͺǤ
Public Bonded Warehouse
ͳȌ Š‡•‡ƒ”‡‘™‡†ƒ†ƒƒ‰‡†„›
‘˜‡”‡–Ȁ
‘˜‡”‡–ƒŽ‘†‹‡•Ȁ‰‡…‹‡•
ʹȌ Ž›†—–‹ƒ„Ž‡‰‘‘†•…ƒ„‡™ƒ”‡Š‘—•‡†–Š‡”‡‹
͵Ȍ ˜ƒ‹Žƒ„‹Ž‹–›‘ˆ•’ƒ…‡…‡”–‹ϐ‹…ƒ–‡ˆ”‘–Š‡™ƒ”‡Š‘—•‡‡‡’‡”™‘—Ž†„‡”‡“—‹”‡†
ͶȌ †‘—„Ž‡†—–›„‘†™‘—Ž†ƒŽ•‘„‡”‡“—‹”‡†–‘„‡ˆ—”‹•Š‡†ˆ‘”†‡’‘•‹–‘ˆ‰‘‘†•
ͷȌ Ž•‘ǡ–Š‡’‡”•‘•‡‡‹‰™ƒ”‡Š‘—•‹‰™‘—Ž† ‡‡†–‘ ’ƒ› ”‡–ƒŽ Ȁ™ƒ”‡Š‘—•‹‰…Šƒ”‰‡•–‘–Š‡™ƒ”‡Š‘—•‡
‡‡’‡”Ǥ

Private Bonded Warehouse

ͳȌ Š‡•‡ƒ”‡‘™‡†ƒ†ƒƒ‰‡†„›’”‹˜ƒ–‡‡–‹–‹‡•Ǣ
ʹȌ Š‡•‡ƒ”‡ǯ–‰‡‡”ƒŽŽ›ƒŽŽ‘™‡†™Š‡”‡–Š‡’—„Ž‹…„‘†‡†™ƒ”‡Š‘—•‡•ƒ”‡ƒ˜ƒ‹Žƒ„Ž‡Ǣ
͵Ȍ Ž›†—–‹ƒ„Ž‡‰‘‘†•…ƒ„‡™ƒ”‡Š‘—•‡†–Š‡”‡‹Ǣ
ͶȌ ˜ƒ‹Žƒ„‹Ž‹–›‘ˆ•’ƒ…‡…‡”–‹ϐ‹…ƒ–‡ˆ”‘–Š‡™ƒ”‡Š‘—•‡‡‡’‡”™‘—Ž†‘–„‡”‡“—‹”‡†‹–Š‹•…ƒ•‡Ǣ
ͷȌ ‘—„Ž‡„‘††—–›™‘—Ž†•–‹ŽŽ„‡”‡“—‹”‡†„—–ǡ…—•–‘•‘ˆϐ‹…‡”•™‘—Ž†‡‡†–‘„‡’‘•–‡†ƒ––Š‡‡š’‡•‡‘ˆ–Š‡
™ƒ”‡Š‘—•‡‡‡’‡”Ǥ
 Lesson 17 Ȉ Overview of Customs Act 819

Š‡
‘‘†••‘™ƒ”‡Š‘—•‡†ǡ…ƒ˜ƒ”›ǡ†‡’‡†‹‰‘™Š‡–Š‡”–Š‡•‡ƒ”‡ˆ‘”ͳͲͲΨš’‘”–”‹‡–‡†‹–•ȋǯ•Ȍ‘”
‘–Š‡”™‹•‡ǡƒ•‡š’Žƒ‹‡†„›–Š‡†‹ƒ‰”ƒ„‡Ž‘™ȋ—’–‘ƒ’‡”‹‘†‘ˆͷ›‡ƒ”•Ȁ͵›‡ƒ”•Ȁͳ›‡ƒ”Ȍǣ

BAGGAGE RULES

‘‘†•‹’‘”–‡†„›ƒ’ƒ••‡‰‡”‘”ƒ‡„‡”‘ˆ…”‡™‹Š‹•„ƒ‰‰ƒ‰‡ƒ”‡…Žƒ••‹ϐ‹‡†—†‡”‘‡–ƒ”‹ˆˆŠ‡ƒ†‹‰ƒ†
Ž‡˜‹‡†–‘ƒ•‹‰Ž‡”ƒ–‡‘ˆ†—–›Ǥ‡…–‹‘͹͹’”‘˜‹†‡•–Šƒ––Š‡‘™‡”‘ˆƒ›„ƒ‰‰ƒ‰‡•ŠƒŽŽˆ‘”–Š‡’—”’‘•‡‘ˆ…Ž‡ƒ”‹‰‹–
ƒ‡•ƒ†‡…Žƒ”ƒ–‹‘‘ˆ‹–•…‘–‡–•–‘–Š‡’”‘’‡”‘ˆϐ‹…‡”Ǥƒ‰‰ƒ‰‡‹…Ž—†‡•—ƒ……‘’ƒ‹‡†„ƒ‰‰ƒ‰‡„—–‡š…Ž—†‡•
‘–‘”…ƒ”ǡƒŽ…‘Š‘Ž‹…†”‹ȋ„‡›‘†…‡”–ƒ‹Ž‹‹–Ȍƒ†‰‘‘†•‹’‘”–‡†–Š”‘—‰Š…‘—”‹‡”Ǥƒ‰‰ƒ‰‡—Ž‡•ǡʹͲͳ͸’”‘˜‹†‡
ˆ‘”†—–›ˆ”‡‡…Ž‡ƒ”ƒ…‡ǡ—’–‘ƒ…‡”–ƒ‹Ž‹‹–ǡ‘ˆƒ”–‹…Ž‡••—…Šƒ•—•‡†’‡”•‘ƒŽ‡ˆˆ‡…–•ǡ–”ƒ˜‡Ž•‘—˜‡‹”•ƒ†‘–Š‡”
ƒ”–‹…Ž‡•™Š‡…ƒ””‹‡†‘–Š‡’‡”•‘‘”‹–Š‡ƒ……‘’ƒ›‹‰„ƒ‰‰ƒ‰‡‘ˆ–Š‡’ƒ••‡‰‡”ƒ””‹˜‹‰‹†‹ƒǤ‡”•‘ƒŽ
‡ˆˆ‡…– ‡ƒ• –Š‹‰• ”‡“—‹”‡† ˆ‘” •ƒ–‹•ˆ›‹‰ †ƒ‹Ž› ‡…‡••‹–‹‡• „—– †‘‡• ‘– ‹…Ž—†‡ Œ‡™‡ŽŽ‡”›Ǥ
‡‡”ƒŽŽ›ǡ †—–› ˆ”‡‡
ƒŽŽ‘™ƒ…‡‹•ƒŽŽ‘™‡†–‘–Š‡†‹ƒ”‡•‹†‡–‘”ˆ‘”‡‹‰‡””‡•‹†‹‰‹†‹ƒǤ
Duty Free Baggage Allowances of Dutiable and Non-Prohibited Articles
(Baggage Rules, 2016)
Rule Passenger Passenger arrivingfrom Amount of Duty Free Baggage
countries Allowance

—Ž‡͵ †‹ƒ”‡•‹†‡–‘”ƒˆ‘”‡‹‰‡” –Š‡”–Šƒ‡’ƒŽǡŠ—–ƒ •ǤͷͲǡͲͲͲ

”‡•‹†‹‰‹†‹ƒ‘”–‘—”‹•–‘ˆ ‘”›ƒƒ”
†‹ƒ‘”‹‰‹
”‘˜‹•‘–‘ ‘—”‹•–‘ˆˆ‘”‡‹‰‘”‹‰‹ –Š‡”–Šƒ‡’ƒŽǡŠ—–ƒ •ǤͳͷǡͲͲͲ
—Ž‡͵ ‘”›ƒƒ”
—Ž‡ͷ › ’ƒ••‡‰‡” ”‡•‹†‹‰ ƒ„”‘ƒ† ›…‘—–”›
‘Ž† ‡™‡ŽŽ‡”›ǣ
ˆ‘”‘”‡–Šƒ‘‡›‡ƒ” ƒǤ
‡–Ž‡‡ȂʹͲ‰”ƒ•™‹–Šƒ
˜ƒŽ—‡…ƒ’‘ˆ•ǤͷͲǡͲͲͲ
„Ǥƒ†›ȂͶͲ‰”ƒ•™‹–Šƒ˜ƒŽ—‡
…ƒ’‘ˆ•ǤͳŽƒ…
 820 Lesson 17 Ȉ EP-TL

DUTY DRAWBACK
Duty Drawback
—–›†”ƒ™„ƒ…’”‘˜‹•‹‘•‡ƒ„Ž‡–Š‡‡š’‘”–‡”–‘‘„–ƒ‹ƒ”‡ˆ—†‘ˆ–Š‡’‘”–—–‹‡•ȋ—•–‘•—–›Ȍ’ƒ‹†‘ǣ
Ȉ ‹’‘”–‡†‰‘‘†•™Š‹…Šƒ”‡‡ƒ–ˆ‘””‡Ǧ‡š’‘”–ƒ–‹‘Ǣ‘”
Ȉ ‹’—–•ǡ™Š‹…Šƒ”‡’”‘…‡••‡†ˆ‘”Ȁ—•‡†‹ƒ—ˆƒ…–—”‡‘ˆϐ‹ƒŽ’”‘†—…–•–‘„‡‡š’‘”–‡†Ǥ

Š‡‡–”ƒŽ
‘˜‡”‡–‹•‡’‘™‡”‡†–‘‰”ƒ–†—–›†”ƒ™„ƒ…ȋ‡…–‹‘͹ͶƬ‡…–‹‘͹ͷȌǤ
Š‹•„‡‡ϐ‹–‹•ƒ˜ƒ‹Žƒ„Ž‡‘–‘Ž›‘–Š‡”‡Ǧ‡š’‘”–‘ˆ–Š‡†—–›’ƒ‹†‰‘‘†•ȋ‡…–‹‘͹ͶȌǡ„—–ƒŽ•‘ǡ‘‹’‘”–‡†ƒ–‡”‹ƒŽ•
—•‡†‹–Š‡ƒ—ˆƒ…–—”‡‘ˆ
‘‘†•™Š‹…Šƒ”‡‡š’‘”–‡†ȋ‡…–‹‘͹ͷȌǤŠ‡•‡‰‘‘†••Š‘—Ž†„‡‡–‡”‡†ˆ‘”‡š’‘”–™‹–Š‹
ͳͺ‘–Š•Ǥ
Š‡’”‘…‡†—”‡‹•ƒ•—†‡”
9 ––Š‡–‹‡‘ˆ‡š’‘”–ǡ–Š‡š’‘”–‡”•ŠƒŽŽ‡†‘”•‡–Š‡•Š‹’’‹‰„‹ŽŽ–‘–Š‡”‘’‡”—•–‘•ˆϐ‹…‡”Ǣ
9 ‡…‡••ƒ”›ˆ‘”•Ž‹‡ͳƒ”‡•—„‹––‡†Ǣ
9 —•–‘•ˆϐ‹…‡”ƒ‡•ƒ‘”†‡”’‡”‹––‹‰…Ž‡ƒ”ƒ…‡ˆ‘”‡š’‘”–ƒ–‹‘ȋ‡…–‹‘ͷͳȌǢ
9 ˆƒƒ‘—–‘ˆ†”ƒ™„ƒ…ǡƒ†‹–‡”‡•–’ƒ‹†–‘–Š‡‡š’‘”–‡”–—”•‘—––‘„‡Š‹‰Š‡”–Šƒ™Šƒ–Š‡‹•‡Ž‹‰‹„Ž‡–‘ǡ
–Š‹•ƒ‘—–™‘—Ž†Šƒ˜‡–‘„‡”‡’ƒ‹†„ƒ…–‘–Š‡—•–‘•ƒ—–Š‘”‹–‹‡•Ǣ
9 ˆ –Š‡”‡ ‹• ƒ †”ƒ™„ƒ… ™Š‹…Š ‹• ƒ†‡ –‘ ƒ ‡š’‘”–‡”ǡ ™Š‘ ‡˜‡–—ƒŽŽ› …ƒ‘– ”‡ƒŽ‹•‡ –Š‡ ˜‘‹…‡ ȋ‡š’‘”–
’”‘…‡‡†•Ȍ™‹–Š‹–Š‡’‡”‹‘†ȋ•Ȍ•’‡…‹ϐ‹‡†„› ǡ•—…Š†”ƒ™„ƒ……‘—Ž†„‡”‡…‘˜‡”‡†ˆ”‘–Š‡‡š’‘”–‡”Ǥ

‡š’‘”–‡”…‘—Ž†‘’–ˆ‘”†”ƒ™„ƒ…ƒ•’‡”–Š‡ŽŽ†—•–”›ƒ–‡ȋȌ‘”–Š‡”ƒ†ƒ–‡ǤŠ‡ǯ•ƒ”‡ϐ‹š‡†ƒ—ƒŽŽ›

„›–Š‡‹”‡…–‘”ƒ–‡‘ˆ”ƒ™„ƒ…ǡ„—––Š‡„”ƒ†”ƒ–‡•ƒ”‡ˆ‘”•’‡…‹ƒŽ’”‘†—…–•Ǥ
Š‡”‡–Š‡‰‘‘†•ƒ”‡‘–’—–‹–‘—•‡ƒˆ–‡”‹’‘”–ǡͻͺΨ‘ˆ—–›”ƒ™„ƒ…‹•ƒ†‹••‹„Ž‡—†‡”‡…–‹‘͹Ͷ‘ˆ–Š‡
—•–‘•…–ǡͳͻ͸ʹǤ…ƒ•‡•™Š‡”‡–Š‡‰‘‘†•Šƒ˜‡„‡‡’—–‹–‘—•‡ƒˆ–‡”‹’‘”–ǡ—–›”ƒ™„ƒ…‹•‰”ƒ–‡†‘ƒ
•Ž‹†‹‰•…ƒŽ‡„ƒ•‹•†‡’‡†‹‰—’‘–Š‡‡š–‡–‘ˆ—•‡‘ˆ–Š‡‰‘‘†•Ǥ‘—–›”ƒ™„ƒ…‹•ƒ˜ƒ‹Žƒ„Ž‡‹ˆ–Š‡‰‘‘†•ƒ”‡
‡š’‘”–‡†ͳͺ‘–Š•ƒˆ–‡”‹’‘”–Ǥ’’Ž‹…ƒ–‹‘ˆ‘”—–›”ƒ™„ƒ…‹•”‡“—‹”‡†–‘„‡ƒ†‡™‹–Š‹͵‘–Š•ˆ”‘–Š‡
†ƒ–‡‘ˆ‡š’‘”–‘ˆ‰‘‘†•ǡ™Š‹…Š…ƒ„‡‡š–‡†‡†—’–‘ͳʹ‘–Š••—„Œ‡…––‘…‘†‹–‹‘•ƒ†’ƒ›‡–‘ˆ”‡“—‹•‹–‡ˆ‡‡
ƒ•’”‘˜‹†‡†‹–Š‡”ƒ™„ƒ…—Ž‡•ǡͳͻͻͷǤ
ˆ–Š‡‰‘‘†•™‡”‡‹’‘••‡••‹‘‘ˆ–Š‡‹’‘”–‡”ǡ–Š‡›‹‰Š–„‡–”‡ƒ–‡†ƒ•—•‡†„›–Š‡‹’‘”–‡”Ǥ•’‡”–Š‡”—Ž‡•
ˆ”ƒ‡†„›‡–”ƒŽ
‘˜‡”‡–ǡ’‡”…‡–ƒ‰‡‘ˆ†”ƒ™„ƒ…‹•‡—‡”ƒ–‡†‹‰‹˜‡„‡Ž‘™–ƒ„Ž‡ǣ

Sl. No Period of Use Percentage of Drawback

ͳ ’–‘͵‘–Š• ͻͷΨ
ʹ ‘”‡–Šƒ͵‘–Š•–‘͸‘–Š• ͺͷΨ
͵ ‘”‡–Šƒ͸‘–Š•–‘ͻ‘–Š• ͹ͷΨ
Ͷ ‘”‡–Šƒͻ‘–Š•–‘ͳʹ‘–Š• ͹ͲΨ
ͷ ‘”‡–Šƒͳʹ‘–Š•–‘ͳͷ‘–Š• ͸ͷΨ
͸ ‘”‡–Šƒͳͷ‘–Š•–‘ͳͺ‘–Š• ͸ͲΨ
͹ ‘”‡–Šƒͳͺ‘–Š• ‹Ž

”ƒ™„ƒ…‹•ƒŽŽ‘™‡†‹ˆ–Š‡—•‡‹•‘˜‡”ʹͶ‘–Š•‘Ž›™‹–Š’‡”‹••‹‘‘ˆ‘‹••‹‘‡”‘ˆ—•–‘•‹ˆ•—ˆϐ‹…‹‡–
…ƒ—•‡‹••Š‘™Ǥ
Š‡—•–‘•…–ǡͳͻ͸ʹŽƒ›•†‘™…‡”–ƒ‹Ž‹‹–ƒ–‹‘•ƒ†…‘†‹–‹‘•ˆ‘”‰”ƒ–‘ˆ—–›”ƒ™„ƒ…Ǥ‘—–›”ƒ™„ƒ…
•ŠƒŽŽ„‡ƒ†‹••‹„Ž‡™Š‡”‡ǣ
‹Ǥ Š‡—–›”ƒ™„ƒ…ƒ‘—–‹•Ž‡••–Šƒ•ǤͷͲȀǦǤ
 Lesson 17 Ȉ Overview of Customs Act 821

‹‹Ǥ Š‡—–›”ƒ™„ƒ…ƒ‘—–‡š…‡‡†•‘‡–Š‹”†‘ˆ–Š‡ƒ”‡–’”‹…‡‘ˆ–Š‡‡š’‘”–’”‘†—…–Ǥ
‹‹‹Ǥ Š‡ —–› ”ƒ™„ƒ… ƒ‘—– ‹• Ž‡•• –Šƒ ͳΨ ‘ˆ  ˜ƒŽ—‡ ‘ˆ ‡š’‘”– ȋ‡š…‡’– ™Š‡”‡ –Š‡ ƒ‘—– ‘ˆ —–›
”ƒ™„ƒ…’‡”•Š‹’‡–‡š…‡‡†••ǤͷͲͲȀǦȌǤ
‹˜Ǥ Š‡”‡˜ƒŽ—‡‘ˆ‡š’‘”–‰‘‘†•‹•Ž‡••–Šƒ–Š‡˜ƒŽ—‡‘ˆ‹’‘”–‡†ƒ–‡”‹ƒŽ—•‡†‹–Š‡‹”ƒ—ˆƒ…–—”‡Ǥˆ‡…‡••ƒ”›ǡ
…‡”–ƒ‹ ‹‹— ˜ƒŽ—‡ ƒ††‹–‹‘ ‘˜‡” –Š‡ ˜ƒŽ—‡ ‘ˆ ‹’‘”–‡† ƒ–‡”‹ƒŽ• …ƒ ƒŽ•‘ „‡ ’”‡•…”‹„‡† „› –Š‡

‘˜‡”‡–Ǥ

Š‡†—–›†”ƒ™„ƒ…‡‡†•–‘„‡’ƒ‹†ǡ™‹–Š‹ͳ‘–Šǡƒ†‹ˆ‘–’ƒ‹†ǡ‹–‡”‡•–‹•’ƒ›ƒ„Ž‡–‘–Š‡…Žƒ‹ƒ–ǡƒ–ƒ•’‡…‹ϐ‹‡†
”ƒ–‡Ǥ
Ž•‘ǡ™Š‡”‡†”ƒ™„ƒ…Šƒ•„‡‡’ƒ‹†–‘–Š‡…Žƒ‹ƒ–‹‡š…‡••‘ˆ™Šƒ–Š‡‹•‡Ž‹‰‹„Ž‡–‘ǡ–Š‡…Žƒ‹ƒ–Šƒ•ƒ–‹‡’‡”‹‘†
‘ˆ ʹ ‘–Š•ǡ –‘ ”‡’ƒ› –Š‡ ‡š…‡••ǡ ‡Ž•‡ǡ ‹–‡”‡•– ™‘—Ž† „‡ …Šƒ”‰‡† ‘ –Š‡ ‡š’‘”–‡” ˆ”‘ –Š‡ †ƒ–‡ ‘ˆ ’ƒ›‡– ‘ˆ
†”ƒ™„ƒ…—–‹Ž–Š‡†ƒ–‡‘ˆ”‡…‘˜‡”›Ǥ
—–›”ƒ™„ƒ…‹•ƒ•…Š‡‡–Šƒ–‡…‘—”ƒ‰‡•‡š’‘”–•ƒ†–Š‡”‡„›ƒ……‡Ž‡”ƒ–‡•ƒ‰‰”‡‰ƒ–‡†‡ƒ†Ǥ–‹•‹–‡†‡†–‘
’”‘’‡Ž–Š‡‡…‘‘‹…‰”‘™–Š‘ˆ–Š‡ƒ–‹‘ƒ†–Š‡”‡„›ƒ……‡Ž‡”ƒ–‡•–Š‡
Ǥ

DEMAND & RECOVERY

Demand of Duty
Š‡ ‘–‹…‡ ‘ˆ †‡ƒ†ǡ —•– „‡ •‡”˜‡† ‹ ™”‹–‹‰ǡ …Ž‡ƒ”Ž› ‡–‹‘‹‰ –Š‡ ”‡ƒ•‘•ǡ ƒ† ’”‘˜‹†‹‰ –Š‡ ’ƒ”–› ƒ
‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†Ǥ
 822 Lesson 17 Ȉ EP-TL

‡‡”ƒŽŽ›ǡ–Š‡Š‘™ƒ—•‡‘–‹…‡ǡ•Š‘—Ž†„‡•‡”˜‡†™‹–Š‹ͳ›‡ƒ”ˆ”‘–Š‡”‡Ž‡˜ƒ–†ƒ–‡Ǣ–Šƒ–‹•Ǣͳ›‡ƒ”ˆ”‘–Š‡
†ƒ–‡‘ˆƒ••‡••‡–Ȁ’ƒ›‡–‘ˆ†—–›Ǥ
‘™‡˜‡”ǡ ‹ •’‡…‹ϐ‹… …ƒ•‡•ǡ ™Š‡”‡ –Š‡ †—–› ‘” ‹–‡”‡•– ‹• ‘– ’ƒ‹†ǡ ‘” •Š‘”– ’ƒ‹†ǡ „› ”‡ƒ•‘ ‘ˆ …‘ŽŽ—•‹‘ǡ ™‹Žˆ—Ž
•—’’”‡••‹‘‘ˆˆƒ…–•ǡ‘”‹••–ƒ–‡‡–ǡ–Š‡–Š‡‘–‹…‡…‘—Ž†„‡•‡”˜‡†™‹–Š‹ƒ’‡”‹‘†‘ˆͷ›‡ƒ”•Ǥ
Š‡†‡ƒ†‘ˆ†—–›’”‘˜‹•‹‘•ƒŽ•‘…ƒŽŽ•ˆ‘”ƒ––ƒ…Š‡–‘ˆ’”‘’‡”–›ˆ‘”—’–‘͸‘–Š•ǡˆ‘”’”‘–‡…–‹‘‘ˆ‹–‡”‡•–‘ˆ
”‡˜‡—‡ƒ†–Šƒ–…‘—Ž†„‡‡š–‡†‡†ˆ‘”ƒ‘–Š‡”’‡”‹‘†‘ˆ͸‘–Š•ǡ„—––Š‡ƒ––ƒ…Š‡–’‡”‹‘†…ƒ‘–‡š…‡‡†ʹ
›‡ƒ”•Ǥ
‘•–™Š‹…Š–Š‡†—–›—•–„‡…‘ŽŽ‡…–‡†ǡ‹–Š‡ƒ‡‘ˆ…—•–‘•†—–›ƒ†’ƒ‹†–‘–Š‡…”‡†‹–‘ˆ–Š‡
‘˜‡”‡–Ǥ
CONFISCATION OF GOODS & CONVEYANCES
‘ϐ‹•…ƒ–‹‘‘ˆ
‘‘†•
‘ϐ‹•…ƒ–‹‘ ™‘—Ž† ‰‡‡”ƒŽŽ› –‡† –‘ …‘‘–‡ –Š‡ ˆ‘”…‡ˆ—Ž •‡‹œ—”‡ Ȁ ”‡’‘••‡••‹‘ ‘ˆ ‰‘‘†• „› –Š‡
‘˜‡”‡–ǡ
™‹–Š‘—–ƒ›…‘’‡•ƒ–‹‘–‘–Š‡‘™‡”ǡƒ•–Š‡’‘••‡••‹‘‘ˆ–Š‡‰‘‘†•™ƒ•…‘–”ƒ”›–‘–Š‡Žƒ™Ǥ
9 Section 111 •–ƒ–‡•–Šƒ––Š‡ˆ‘ŽŽ‘™‹‰‹’”‘’‡”Ž›‹’‘”–‡†‰‘‘†•ǡ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘
Ȉ –Š‘•‡™Š‹…Šƒ”‡‹’‘”–‡†„›•‡ƒȀƒ‹”ƒ†‘ˆϐŽ‘ƒ†‡†Ȁƒ––‡’–‡†–‘„‡‘ˆϐŽ‘ƒ†‡†‹ƒ’‘”–‘–Š‡”–Šƒ
–Š‡ƒ’’‘‹–‡†…—•–‘•ǯ’‘”–Ǥ
Ȉ –Š‘•‡™Š‹…Šƒ”‡‹’‘”–‡†„›Žƒ†Ȁ‹Žƒ†™ƒ–‡”ǡ–Š”‘—‰Šƒ”‘—–‡‘–Š‡”–Šƒƒ•’‡…‹ϐ‹‡†”‘—–‡Ǥ
Ȉ ƒ›†—–‹ƒ„Ž‡Ȁ’”‘Š‹„‹–‡†‰‘‘†•„”‘—‰Š–‹–‘ƒ›„ƒ›Ȁ…”‡‡Ȁ‰—Žˆ‡–…Ǥˆ‘”–Š‡’—”’‘•‡‘ˆ„‡‹‰Žƒ†‡†
ƒ–ƒ’Žƒ…‡‘–Š‡”–Šƒ…—•–‘•ǯ’‘”–Ǥ
Ȉ ƒ›†—–‹ƒ„Ž‡Ȁ’”‘Š‹„‹–‡†‰‘‘†•ǡˆ‘—†…‘…‡ƒŽ‡†‹ƒ…‘˜‡›ƒ…‡Ǥ
Ȉ ƒ›†—–‹ƒ„Ž‡Ȁ’”‘Š‹„‹–‡†‰‘‘†•™Š‹…Š•Š‘—Ž†Šƒ˜‡„‡‡†‹•…Ž‘•‡†‹–Š‡’‘”–
‡‡”ƒŽƒ‹ˆ‡•–„—–
™‡”‡‘–Ǥ
Ȉ ƒ› †—–‹ƒ„Ž‡ Ȁ ’”‘Š‹„‹–‡† ‰‘‘†• ”‡‘˜‡† Ȁ ƒ––‡’–‡† –‘ „‡ ”‡‘˜‡† ˆ”‘ ƒ ™ƒ”‡Š‘—•‡ Ȁ …—•–‘•
•–ƒ–‹‘ǡ™‹–Š‘—–’‡”‹••‹‘Ǥ
Ȉ ‰‘‘†•™Š‹…Š†‘‘–ƒ–…Š–Š‡†‡•…”‹’–‹‘‹–Š‡†‘…—‡–•ǡ˜‹•ǦǦ˜‹•˜ƒŽ—‡Ȁƒ›‘–Š‡”’ƒ”–‹…—Žƒ”•Ǥ
Ȉ ƒ›‰‘‘†•ǡ™Š‹…Š™‡”‡‡š‡’–‡†ˆ”‘†—–›•—„Œ‡…––‘ƒ…‘†‹–‹‘ǡ™Š‹…Š™ƒ•‡˜‡–—ƒŽŽ›‘–‡–Ǥ
9 Section 113 •–ƒ–‡•–Šƒ––Š‡ˆ‘ŽŽ‘™‹‰‹’”‘’‡”Ž›‡š’‘”–‡†‰‘‘†•ǡ•ŠƒŽŽ„‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘
Ȉ –Š‘•‡™Š‹…Šƒ”‡‡š’‘”–‡†„›•‡ƒȀƒ‹”ƒ†Ž‘ƒ†‡†Ȁƒ––‡’–‡†–‘„‡Ž‘ƒ†‡†‹ƒ’‘”–‘–Š‡”–Šƒ–Š‡
ƒ’’‘‹–‡†…—•–‘•ǯ’‘”–Ǥ
Ȉ –Š‘•‡™Š‹…Šƒ”‡‡š’‘”–‡†„›Žƒ†Ȁ‹Žƒ†™ƒ–‡”ǡ–Š”‘—‰Šƒ”‘—–‡‘–Š‡”–Šƒƒ•’‡…‹ϐ‹‡†”‘—–‡Ǥ
Ȉ ƒ› †—–‹ƒ„Ž‡ Ȁ ’”‘Š‹„‹–‡† ‰‘‘†• „”‘—‰Š– ‡ƒ” ƒ› „ƒ› Ȁ …”‡‡ Ȁ ‰—Žˆ ‡–…Ǥ ˆ‘” –Š‡ ’—”’‘•‡ ‘ˆ „‡‹‰
‡š’‘”–‡†ˆ”‘ƒ’Žƒ…‡‘–Š‡”–Šƒ…—•–‘•ǯ’‘”–Ǥ
Ȉ ƒ›†—–‹ƒ„Ž‡Ȁ’”‘Š‹„‹–‡†‰‘‘†•ǡˆ‘—†…‘…‡ƒŽ‡†‹ƒ…‘˜‡›ƒ…‡Ǥ
Ȉ ƒ›‰‘‘†•Ž‘ƒ†‡†‹ƒ™”‘‰ˆ—Žƒ‡”™‹–Š‘—–‡…‡••ƒ”›’‡”‹••‹‘•Ǥ
Ȉ ‰‘‘†•™Š‹…Š†‘‘–ƒ–…Š–Š‡†‡•…”‹’–‹‘‹–Š‡†‘…—‡–•ǡ˜‹•ǦǦ˜‹•˜ƒŽ—‡Ȁƒ›‘–Š‡”’ƒ”–‹…—Žƒ”•Ǥ
Ȉ ƒ›‰‘‘†•ǡ‘™Š‹…Š‹’‘”–†—–›™ƒ•ǯ–’ƒ‹†ƒ†‡–‡”‡†ˆ‘”‡š’‘”–—†‡”ƒ…Žƒ‹ˆ‘”†”ƒ™„ƒ…Ǥ
9 Section 115 †‡ƒŽ•™‹–Š‘˜‡›ƒ…‡•™Š‹…Šƒ”‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘
Ȉ › ˜‡••‡Ž ™Š‹…Š Šƒ• „‡‡ ™‹–Š‹ –Š‡ †‹ƒ …—•–‘• ™ƒ–‡”•ǡ ƒ› ƒ‹”…”ƒˆ– ‹ †‹ƒǡ ‘” ƒ› ˜‡Š‹…Ž‡ǡ
™Š‹…ŠŠƒ•„‡‡ƒ†ƒ’–‡†‘”ϐ‹––‡†‘”•–”—…–—”‡†‹ƒƒ‡”–Šƒ–‹–’—”’‘”–•‘”‡ƒ„Ž‡•–Š‡…‘…‡ƒŽ‡–
‘ˆ‰‘‘†•Ǥ
Ȉ ›…‘˜‡›ƒ…‡ˆ”‘™Š‹…Š–Š‡‰‘‘†•ƒ”‡†‡•–”‘›‡†–‘’”‡˜‡–•‡‹œ—”‡Ǥ
Ȉ ›…‘˜‡›ƒ…‡™Š‹…ŠŠƒ†–‘•–‘’ȀŽƒ†„—–†‹†ǯ–†‘•‘‡š…‡’–ˆ‘”•—ˆϐ‹…‹‡–…ƒ—•‡Ǥ
 Lesson 17 Ȉ Overview of Customs Act 823

Ȉ ›˜‡••‡Žˆ”‘™Š‹…Š‰‘‘†•™Š‹…ŠŠƒ˜‡„‡‡…Ž‡ƒ”‡†ˆ‘”‡š’‘”–ƒ–‹‘ǡ—†‡”ƒ…Žƒ‹ˆ‘”†”ƒ™„ƒ…ǡ
™‡”‡—Ž‘ƒ†‡†™‹–Š‘—–‡…‡••ƒ”›’‡”‹••‹‘•Ǥ
Ȉ ›…‘˜‡›ƒ…‡™Š‹…Š…ƒ””‹‡†‰‘‘†•‹–‘†‹ƒǡ„—–™Š‹…Š™‡”‡Žƒ–‡”‹••‹‰™‹–Š‘—–ƒ›ƒ……‘—–ˆ‘”
–Š‡Ž‘••Ǥ
Ȉ ›…‘˜‡›ƒ…‡Ȁƒ‹ƒŽ—•‡†ˆ‘”•—‰‰Ž‹‰Ǥ
9 Section 118 †‡ƒŽ•™‹–Š…‘ϐ‹•…ƒ–‹‘‘ˆ’ƒ…ƒ‰‡•
Ȉ Š‡”‡–Š‡‰‘‘†•‹’‘”–‡†Ȁ‡š’‘”–‡†ƒ”‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘ǡ–Š‡’ƒ…ƒ‰‡•™‹–Š‹™Š‹…Š–Š‡›ƒ”‡
…ƒ•‡†ƒ†…ƒ””‹‡†ǡƒ”‡ƒŽ•‘Ž‹ƒ„Ž‡ˆ‘”…‘ϐ‹•…ƒ–‹‘Ǥ
9 Section 119 •–ƒ–‡•–Šƒ–ƒ›‰‘‘†•—•‡†–‘…‘…‡ƒŽ–Š‡•—‰‰Ž‡†‰‘‘†•ƒ”‡ƒŽ•‘Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘
9 Section 120 & 121 •–ƒ–‡ –Šƒ– ™Š‡”‡ –Š‡ •—‰‰Ž‡† ‰‘‘†• —†‡”‰‘ ƒ …Šƒ‰‡ ‹ –Š‡‹” ’Š›•‹…ƒŽ ˆ‘”ǡ ’‘•–
•—‰‰Ž‹‰ǡ‡˜‡–Š‡–Š‡›™‘—Ž†„‡Ž‹ƒ„Ž‡ˆ‘”…‘ϐ‹•…ƒ–‹‘ȋ‡šƒ’Ž‡ǣ‰‘Ž†„ƒ”•ǡŽƒ–‡”…‘˜‡”–‡†–‘‘”ƒ‡–•ȌǤ
Ž•‘ǡ ™Š‡”‡ –Š‡ •—‰‰Ž‡† ‰‘‘†• ƒ”‡ ‹š‡† ‹ ƒ ƒ‡” ™‹–Š ‘–Š‡” ‰‘‘†• •—…Š –Šƒ– –Š‡› ƒ”‡ ‹•‡’ƒ”ƒ„Ž‡ǡ
‡–‹”‡‰‘‘†•™‘—Ž†„‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘ǡƒ†‹ˆ–Š‡•—‰‰Ž‡†‰‘‘†•ƒ”‡•‘Ž†‘ˆˆǡ–Š‡•ƒŽ‡’”‘…‡‡†•–Š‡”‡‘ˆ
ƒ”‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘Ǥ
9 Section 122 •–ƒ–‡•–Šƒ––Š‡ƒ†Œ—†‹…ƒ–‹‰ƒ—–Š‘”‹–‹‡••ŠƒŽŽ„‡‰‹˜‡ƒ‘’’‘”–—‹–›‘ˆ„‡‹‰Š‡ƒ”†–‘–Š‡’ƒ”–›
…‘…‡”‡†Ǥ
9 Section 123 …Ž‡ƒ”Ž› •–ƒ–‡• –Šƒ– ‹ˆ ‰‘‘†• ƒ”‡ •‡‹œ‡†ǡ –Š‡ ‘—• ‹• ‘ –Š‡ ‘™‡” –‘ ’”‘˜‡ –Šƒ– –Š‡› ™‡”‡ ‘–
•—‰‰Ž‡†Ǥ
9 Section 124 …Ž‡ƒ”Ž›•–ƒ–‡•–Šƒ–„‡ˆ‘”‡…‘ϐ‹•…ƒ–‹‘ǡ‹–‹•‡…‡••ƒ”›–Šƒ–ƒ•Š‘™…ƒ—•‡‘–‹…‡ȋȌ‹•‹••—‡†–‘
–Š‡‘™‡”ǡ…‹–‹‰‰”‘—†•ƒ†Š‡•Š‘—Ž†„‡‰‹˜‡ƒ‘’’‘”–—‹–›–‘ƒ‡ƒ”‡’”‡•‡–ƒ–‹‘Ȁ‘ˆ„‡‹‰Š‡ƒ”†Ǥ
Š‡…ƒ„‡‹••—‡†„›ƒ’‡”•‘‘–„‡Ž‘™–Š‡”ƒ‘ˆ••‹•–ƒ–‘‹••‹‘‡”‘ˆ—•–‘•Ǥ
9 Section 125 •–ƒ–‡•–Šƒ––Š‡ƒ—–Š‘”‹•‡†‘ˆϐ‹…‡”ƒ›ƒŽŽ‘™–Š‡‘™‡”ƒ‘’–‹‘–‘’ƒ›ϐ‹‡‹Ž‹‡—‘ˆ…‘ϐ‹•…ƒ–‹‘Ǥ
9 Section 126 ‡–‹‘•–Šƒ–…‘ϐ‹•…ƒ–‡†‰‘‘†•˜‡•–™‹–Š–Š‡‡–”ƒŽ
‘˜‡”‡–Ǥ
9 Section 127 …Žƒ”‹ϐ‹‡•–Šƒ–ƒ›ƒ™ƒ”†‘ˆ…‘ϐ‹•…ƒ–‹‘Ȁ’‡ƒŽ–›•ŠƒŽŽ‘–‹–‡”ˆ‡”‡™‹–Š‘”’”‡˜‡––Š‡‘™‡”
ˆ”‘„‡‹‰’—‹•Š‡†—†‡”ƒ›‘–Š‡”’”‘˜‹•‹‘•‘ˆ–Š‹•‘”ƒ›‘–Š‡”Žƒ™ˆ‘”–Š‡–‹‡„‡‹‰‹ˆ‘”…‡Ǥ

REFUND
Refund of Export Duty
Š‡”‡‘–Š‡‡š’‘”–‘ˆ‰‘‘†•Ǣƒ›†—–›Šƒ•„‡‡’ƒ‹†ǡ•—…Š†—–›•ŠƒŽŽ„‡”‡ˆ—†‡†–‘–Š‡’‡”•‘„›™Š‘‘”‘
™Š‘•‡„‡ŠƒŽˆ‹–™ƒ•’ƒ‹†ǡ‹ˆǦ
ȋƒȌ –Š‡‰‘‘†•ƒ”‡”‡–—”‡†–‘•—…Š’‡”•‘‘–Š‡”™‹•‡–Šƒ„›™ƒ›‘ˆ”‡Ǧ•ƒŽ‡Ǣ
ȋ„Ȍ –Š‡‰‘‘†•ƒ”‡”‡Ǧ‹’‘”–‡†™‹–Š‹‘‡›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ‡š’‘”–ƒ–‹‘Ǣƒ†
ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡ˆ—†‘ˆ•—…Š†—–›‹•ƒ†‡™‹–Š‹͸‘–Š•ˆ”‘–Š‡†ƒ–‡‘™Š‹…Š–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ‡•
ƒ‘”†‡”ˆ‘”–Š‡…Ž‡ƒ”ƒ…‡‘ˆ–Š‡‰‘‘†•™Š‡–Š‡›ƒ”‡‹’‘”–‡†„ƒ…Ǥ

Refund of Import Duty

Š‡”‡‘–Š‡‹’‘”–‘ˆƒ›‰‘‘†•ǡ†—–›Šƒ•„‡‡’ƒ‹†—’‘…Ž‡ƒ”ƒ…‡ˆ‘”Š‘‡…‘•—’–‹‘ǡ•—…Š†—–›…ƒ„‡
”‡ˆ—†‡†–‘–Š‡’‡”•‘„›™Š‘‘”‘™Š‘•‡„‡ŠƒŽˆ‹–™ƒ•’ƒ‹†ǡ‹ˆǦ
ȋƒȌ Š‡‰‘‘†•ƒ”‡ˆ‘—†–‘„‡†‡ˆ‡…–‹˜‡‘”‘–‹…‘ˆ‘”‹–›™‹–Š–Š‡•’‡…‹ϐ‹…ƒ–‹‘•Ǥ
ȋ„Ȍ Š‡‹’‘”–‡”†‘‡•‘–…Žƒ‹ƒ›†—–›†”ƒ™„ƒ…™‹–Š”‡•’‡…––‘–Š‡•‡‰‘‘†•Ǥ
ȋ…Ȍ ˆ –Š‡ ‰‘‘†• ƒ”‡ ‡š’‘”–‡† „ƒ… Ȁ ‹’‘”–‡” ”‡Ž‹“—‹•Š‡• Š‹• –‹–Ž‡ –‘ –Š‡ ‰‘‘†• Ȁ –Š‡› ƒ”‡ †‡•–”‘›‡† ‹ –Š‡
’”‡•‡…‡‘ˆ–Š‡’”‘’‡”‘ˆϐ‹…‡”Ǥ
ƒ’’Ž‹…ƒ–‹‘ˆ‘””‡ˆ—†‘ˆ†—–›‹•–‘„‡ƒ†‡™‹–Š‹͸‘–Š•ˆ”‘–Š‡”‡Ž‡˜ƒ–†ƒ–‡ǡ‹Ǥ‡Ǥǡ
 824 Lesson 17 Ȉ EP-TL

ȋƒȌ Š‡†ƒ–‡™Š‡–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ‡•ƒ‘”†‡”ˆ‘”…Ž‡ƒ”ƒ…‡‘ˆ‰‘‘†•™Š‡–Š‡›ƒ”‡‡š’‘”–‡†„ƒ…Ǥ
ȋ„Ȍ ƒ–‡‘ˆ”‡Ž‹“—‹•Š‡–‹ˆ–Š‡‹’‘”–‡””‡Ž‹“—‹•Š‡•Š‹•–‹–Ž‡–‘–Š‡‰‘‘†•Ǥ
ȋ…Ȍ ƒ–‡‘ˆ†‡•–”—…–‹‘ǡ™Š‡”‡–Š‡‰‘‘†•ƒ”‡†‡•–”‘›‡†Ǥ
‘”‡‘˜‡”ǡˆ‘”ƒŽŽ‰‡‡”ƒŽ”‡ˆ—†•‘ˆ†—–›ǡƒ’ƒ”–ˆ”‘–Š‡‘‡•…‘˜‡”‡†ƒ„‘˜‡ǡŠƒ˜‡ƒŽ‹‹–ƒ–‹‘’‡”‹‘†‘ˆͳ›‡ƒ”ǡ
–Šƒ–‹•ǡ–Š‡”‡ˆ—†ƒ’’Ž‹…ƒ–‹‘—•–„‡ϐ‹Ž‡†™‹–Š‹ͳ›‡ƒ”ˆ”‘–Š‡†ƒ–‡‘ˆ’ƒ›‡–‘ˆ•—…Š†—–›Ǥ

MISCELLANEOUS
••‡••‡–‘ˆ—–›ȏ‡…–‹‘ͳ͹Ȑ
‡…–‹‘ͳ͹‘ˆ–Š‡—•–‘•…–ǡ’”‡•…”‹„‡•–Š‡‡–Š‘†ˆ‘”•‡ŽˆǦƒ••‡••‡–‘ˆ†—–›ǤŠ‡‹’‘”–‡”ƒ†‡š’‘”–‡”—•–
•‡ŽˆǦƒ••‡••–Š‡†—–›‹ˆƒ›Ž‡˜‹ƒ„Ž‡‘•—…Š‰‘‘†•ǤŠ‡•‡•‡ŽˆǦƒ••‡••‡†‰‘‘†•ƒ›„‡˜‡”‹ϐ‹‡†ǡ‡šƒ‹‡†‘”–‡•–‡†„›
–Š‡’”‘’‡”‘ˆϐ‹…‡”Ǥ
‘”˜‡”‹ϐ‹…ƒ–‹‘ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›”‡“—‹”‡–Š‡‹’‘”–‡”ǡ‡š’‘”–‡”‘”ƒ›‘–Š‡”’‡”•‘–‘’”‘†—…‡ƒ›†‘…—‡–
‘”‹ˆ‘”ƒ–‹‘ǡ‘–Š‡„ƒ•‹•‘ˆ™Š‹…Š–Š‡†—–›Ž‡˜‹ƒ„Ž‡‘–Š‡‹’‘”–‡†‰‘‘†•‘”‡š’‘”–‰‘‘†•ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ
…ƒ„‡ƒ•…‡”–ƒ‹‡†ƒ†–Š‡”‡—’‘ǡ–Š‡‹’‘”–‡”ǡ‡š’‘”–‡”‘”•—…Š‘–Š‡”’‡”•‘•ŠƒŽŽ„‡„‘—†–‘’”‘†—…‡•—…Š
†‘…—‡–‘”ˆ—”‹•Š•—…Š‹ˆ‘”ƒ–‹‘Ǥ
Š‡”‡‹–‹•ˆ‘—†‘˜‡”‹ϐ‹…ƒ–‹‘ǡ‡šƒ‹ƒ–‹‘‘”–‡•–‹‰‘ˆ–Š‡‰‘‘†•‘”‘–Š‡”™‹•‡–Šƒ––Š‡•‡ŽˆǦƒ••‡••‡–‹•‘–
†‘‡…‘””‡…–Ž›ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ”‡Ǧƒ••‡••–Š‡†—–›Ž‡˜‹ƒ„Ž‡‘•—…Š‰‘‘†•Ǥ
Š‡”‡ƒ›”‡Ǧƒ••‡••‡–•‘†‘‡‹•…‘–”ƒ”›–‘–Š‡•‡ŽˆǦƒ••‡••‡–†‘‡„›–Š‡‹’‘”–‡”‘”‡š’‘”–‡”™‹–Š”‡•’‡…–
–‘˜ƒŽ—ƒ–‹‘‘ˆ‰‘‘†•ǡ…Žƒ••‹ϐ‹…ƒ–‹‘ǡ‘”…‘…‡••‹‘•‘ˆ†—–›ƒ˜ƒ‹Ž‡†ƒ†™Š‡”‡–Š‡‹’‘”–‡”‘”‡š’‘”–‡”ǡƒ•–Š‡…ƒ•‡
ƒ›„‡ǡ…‘ϐ‹”•Š‹•ƒ……‡’–ƒ…‡‘ˆ–Š‡•ƒ‹†”‡Ǧƒ••‡••‡–‹™”‹–‹‰ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”•ŠƒŽŽ’ƒ••ƒ•’‡ƒ‹‰‘”†‡”
‘–Š‡”‡Ǧƒ••‡••‡–ǡ™‹–Š‹ϐ‹ˆ–‡‡†ƒ›•ˆ”‘–Š‡†ƒ–‡‘ˆ”‡Ǧƒ••‡••‡–Ǥ
Š‡”‡–Š‡‹’‘”–‡”‘”‡š’‘”–‡”‹•—ƒ„Ž‡–‘ƒ‡•‡ŽˆǦƒ••‡••‡–ƒ†ƒ‡•ƒ”‡“—‡•–‹™”‹–‹‰–‘–Š‡’”‘’‡”
‘ˆϐ‹…‡”ˆ‘”ƒ••‡••‡–Ǣ‘”™Š‡”‡–Š‡’”‘’‡”‘ˆϐ‹…‡”†‡‡•‹–‡…‡••ƒ”›ˆ‘”ƒ›”‡ƒ•‘™Šƒ–•‘‡˜‡”ǡ–Š‡‘ˆϐ‹…‡”ƒ›
†‹”‡…––Šƒ––Š‡†—–›Ž‡˜‹ƒ„Ž‡‘•—…Š‰‘‘†•„‡•—„Œ‡…––‘’”‘˜‹•‹‘ƒŽƒ••‡••‡–‹ˆ–Š‡‹’‘”–‡”‘”–Š‡‡š’‘”–‡”ǡƒ•
–Š‡…ƒ•‡ƒ›„‡ǡˆ—”‹•Š‡••—…Š•‡…—”‹–›ƒ•–Š‡’”‘’‡”‘ˆϐ‹…‡”†‡‡•ϐ‹–ˆ‘”–Š‡’ƒ›‡–‘ˆ–Š‡†‡ϐ‹…‹‡…›ǡ‹ˆƒ›ǡ
„‡–™‡‡–Š‡†—–›ƒ•ƒ›„‡ϐ‹ƒŽŽ›ƒ••‡••‡†ƒ†–Š‡†—–›’”‘˜‹•‹‘ƒŽŽ›ƒ••‡••‡†Ǥ
Š‡–Š‡†—–›Ž‡˜‹ƒ„Ž‡‘•—…Š‰‘‘†•‹•ƒ••‡••‡†ϐ‹ƒŽŽ›‘””‡ƒ••‡••‡†„›–Š‡’”‘’‡”‘ˆϐ‹…‡”‹ƒ……‘”†ƒ…‡™‹–Š–Š‡
’”‘˜‹•‹‘•‘ˆ–Š‹•…–ǡ–Š‡ȋƒȌ‹–Š‡…ƒ•‡‘ˆ‰‘‘†•…Ž‡ƒ”‡†ˆ‘”Š‘‡…‘•—’–‹‘‘”‡š’‘”–ƒ–‹‘ǡ–Š‡ƒ‘—–’ƒ‹†
•ŠƒŽŽ„‡ƒ†Œ—•–‡†ƒ‰ƒ‹•––Š‡†—–›ϐ‹ƒŽŽ›ƒ••‡••‡†ƒ†‹ˆ–Š‡ƒ‘—–•‘’ƒ‹†ˆƒŽŽ••Š‘”–‘ˆǡ‘”‹•‹‡š…‡••‘ˆ–Š‡†—–›
ϐ‹ƒŽŽ›ƒ••‡••‡†ǡ–Š‡‹’‘”–‡”‘”–Š‡‡š’‘”–‡”‘ˆ–Š‡‰‘‘†••ŠƒŽŽ’ƒ›–Š‡†‡ϐ‹…‹‡…›‘”„‡‡–‹–Ž‡†–‘ƒ”‡ˆ—†ǡƒ•–Š‡
…ƒ•‡ƒ›„‡Ǣƒ†ȋ„Ȍ‹–Š‡…ƒ•‡‘ˆ™ƒ”‡Š‘—•‡†‰‘‘†•ǡ–Š‡’”‘’‡”‘ˆϐ‹…‡”ƒ›ǡ™Š‡”‡–Š‡†—–›ϐ‹ƒŽŽ›ƒ••‡••‡†‘”
”‡Ǧƒ••‡••‡†ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ‹•‹‡š…‡••‘ˆ–Š‡†—–›’”‘˜‹•‹‘ƒŽŽ›ƒ••‡••‡†ǡ”‡“—‹”‡–Š‡‹’‘”–‡”–‘‡š‡…—–‡ƒ
„‘†ǡ„‹†‹‰Š‹•‡Žˆ‹ƒ•—‡“—ƒŽ–‘–™‹…‡–Š‡ƒ‘—–‘ˆ–Š‡‡š…‡••†—–›Ǥ
Š‡ ‹’‘”–‡” ‘” ‡š’‘”–‡” •ŠƒŽŽ „‡ Ž‹ƒ„Ž‡ –‘ ’ƒ› ‹–‡”‡•–ǡ ‘ ƒ› ƒ‘—– ’ƒ›ƒ„Ž‡ –‘ –Š‡ ‡–”ƒŽ
‘˜‡”‡–ǡ
…‘•‡“—‡––‘–Š‡ϐ‹ƒŽƒ••‡••‡–‘”†‡”‘””‡Ǧƒ••‡••‡–‘”†‡”ǡƒ––Š‡”ƒ–‡ϐ‹š‡†„›–Š‡‡–”ƒŽ
‘˜‡”‡–ˆ”‘
–Š‡ϐ‹”•–†ƒ›‘ˆ–Š‡‘–Š‹™Š‹…Š–Š‡†—–›‹•’”‘˜‹•‹‘ƒŽŽ›ƒ••‡••‡†–‹ŽŽ–Š‡†ƒ–‡‘ˆ’ƒ›‡––Š‡”‡‘ˆǤ
ˆƒ›”‡ˆ—†ƒ„Ž‡ƒ‘—–‹•‘–”‡ˆ—†‡†™‹–Š‹͵‘–Š•ˆ”‘–Š‡†ƒ–‡‘ˆƒ••‡••‡–‘ˆ†—–›ϐ‹ƒŽŽ›‘””‡ƒ••‡••‡–
‘ˆ†—–›ǡƒ•–Š‡…ƒ•‡ƒ›„‡ǡ–Š‡”‡•ŠƒŽŽ„‡’ƒ‹†ƒ‹–‡”‡•–‘•—…Š—Ǧ”‡ˆ—†‡†ƒ‘—–ƒ–•—…Š”ƒ–‡ϐ‹š‡†„›–Š‡
‡–”ƒŽ
‘˜‡”‡–—–‹Ž–Š‡†ƒ–‡‘ˆ”‡ˆ—†‘ˆ•—…Šƒ‘—–Ǥ
Prohibitions
‡–”ƒŽ
‘˜‡”‡–ƒ›’”‘Š‹„‹–ǡ‡‹–Š‡”ƒ„•‘Ž—–‡Ž›‘”•—„Œ‡…––‘•—…Š…‘†‹–‹‘••’‡…‹ϐ‹‡†‹–Š‡‘–‹ϐ‹…ƒ–‹‘ǡ–Š‡
‹’‘”–Ȁ‡š’‘”–‘ˆ‰‘‘†•‘ˆ–Š‡•’‡…‹ϐ‹‡††‡•…”‹’–‹‘ǡˆ‘”ǣ
ȋƒȌ ƒ‹–‡ƒ…‡‘ˆƒ–‹‘ƒŽ•‡…—”‹–›
ȋ„Ȍ ƒ‹–‡ƒ…‡‘ˆ’—„Ž‹…‘”†‡”Ȁ†‡…‡…›
ȋ…Ȍ ”‡˜‡–‹‘‘ˆ•—‰‰Ž‹‰
 Lesson 17 Ȉ Overview of Customs Act 825

ȋ†Ȍ ‘•‡”˜ƒ–‹‘‘ˆ‡š…Šƒ‰‡
ȋ‡Ȍ ƒˆ‡‰—ƒ”†‹‰–Š‡„ƒŽƒ…‡‘ˆ’ƒ›‡–•
ȋˆȌ ”‘–‡…–‹‘‘ˆŠ—ƒŽ‹˜‡•Ȁƒ‹ƒŽ•
ȋ‰Ȍ ”‘–‡…–‹‘‘ˆƒ–‹‘ƒŽ–”‡ƒ•—”‡•
ȋŠȌ ”‘–‡…–‹‘‘ˆƒ–‡–•Ƭ”ƒ†‡ƒ”•
ȋ‹Ȍ ”‡˜‡–‹‘‘ˆ…‘–”ƒ˜‡–‹‘‘ˆƒ›Žƒ™•‘”‹–Š‡‹–‡”‡•–‘ˆ–Š‡’—„Ž‹…

Offences
Š‡ˆ‘ŽŽ‘™‹‰™‘—Ž†…‘•–‹–—–‡‘ˆˆ‡…‡•—†‡”–Š‡…–Ǥ
ȋƒȌ ›‹•Ǧ†‡…Žƒ”ƒ–‹‘‹”‡•’‡…–‘ˆ–Š‡‰‘‘†•˜‹•ǦǦ˜‹•‹–•˜ƒŽ—‡‘”†‡•…”‹’–‹‘‘”™‡‹‰Š–‘”‘”‹‰‹Ǥ
ȋ„Ȍ ‹‘Žƒ–‹‘‘ˆƒŽŽ‹‡†ƒ…–•ǡ‡šƒ’Ž‡ǡ‹‘Žƒ–‹‘‘ˆ™‹Ž†Ž‹ˆ‡ǡ”—‰Ƭ‘•‡–‹…•…–ǡ ‘‘†Žƒ™•‡–…Ǥ
ȋ…Ȍ ƒ†‹‰‘ˆ
‘‘†•ƒ–—ƒ—–Š‘”‹•‡†’‘”–•Ǥ
—…Š‘ˆˆ‡…‡•…‘—Ž†”‡•—Ž–‹…‹˜‹Ž‘”…”‹‹ƒŽŽ‹ƒ„‹Ž‹–‹‡•‘”„‘–Šƒ†„‘–Š…‘—Ž†”—•‹—Ž–ƒ‡‘—•Ž›Ǥ”‹‹ƒŽ
’”‘•‡…—–‹‘…‘—Ž†”‡•—Ž–‹‹’”‹•‘‡–Ϊϐ‹‡•ǡƒ†…‹˜‹Ž’”‘•‡…—–‹‘…‘—Ž†”‡•—Ž–‹ƒŽ‹‡ƒ–‹‘‘ˆ™‡ƒŽ–Šƒ†
’‡ƒŽ–‹‡•Ǥ
Criminal Liabilities
9 —‹•Š‡–—’–‘͹›‡ƒ”•Ǥ
9 ˆˆ‡…‡•‹˜‘Ž˜‹‰†—–›‡˜ƒ•‹‘‘ˆ‘”‡–ŠƒͷͲƒŠ•ǡ‘”’”‘Š‹„‹–‡†‰‘‘†•ǡƒ”‡‘Ǧ„ƒ‹Žƒ„Ž‡Ǥ
9 ”ƒ—†—Ž‡–†—–›†”ƒ™„ƒ……Žƒ‹•ǡ‡š…‡‡†‹‰ͷͲƒŠ•‹•ƒŽ•‘‘„ƒ‹Žƒ„Ž‡Ǥ

Civil Liabilities
9 ‡…‘˜‡”›‘ˆ†—–‹‡••Š‘”–’ƒ‹†Ǥ
9 –‡”‡•–…Šƒ”‰‡Ǥ
9 ‡ƒŽ–‹‡•Ǥ
9 ‘ϐ‹•…ƒ–‹‘‘ˆ‹’‘”–Ȁ‡š’‘”–‰‘‘†•Ǥ
9 ‘ϐ‹•…ƒ–‹‘‘ˆ…‘˜‡›ƒ…‡•—•‡†ˆ‘”•—‰‰Ž‹‰Ǥ
9 ’–‘ʹͲͲΨ†—–›ˆ‘”—ƒ……‘—–‡†‰‘‘†•Ǥ
9 ’–‘ͷ–‹‡•–Š‡˜ƒŽ—‡‘ˆ‰‘‘†•ˆ‘”ˆ‘”‰‡††‘…—‡–•Ǥ

Š‡‘”ƒŽŽ‹‹–ˆ‘”–Š‡ƒ„‘˜‡’”‘•‡…—–‹‘‹•‘‡›‡ƒ”ǡ™Š‡”‡ƒ•ˆ‘”‹–‡†‡†ˆ”ƒ—†ǡ–Š‡–‹‡Ž‹‹–‹•ͷ›‡ƒ”•Ǥ
Advance Ruling
Š‹•”‡ˆ‡”•–‘–Š‡†‡–‡”‹ƒ–‹‘ǡ„›–Š‡ƒ—–Š‘”‹–›ǡ‘ˆƒ“—‡•–‹‘‘ˆŽƒ™Ȁˆƒ…–•’‡…‹ϐ‹‡†‹–Š‡ƒ’’Ž‹…ƒ–‹‘ǡ”‡‰ƒ”†‹‰
–Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›†—–›‹”‡Žƒ–‹‘–‘ƒƒ…–‹˜‹–›’”‘’‘•‡†–‘„‡—†‡”–ƒ‡„›ƒƒ’’Ž‹…ƒ–Ǥ
–Š‡…‘–‡š–‘ˆ—•–‘•…–ǡ–Š‡ƒ…–‹˜‹–›ƒ„‘˜‡‹–Š‡†‡ϐ‹‹–‹‘™‘—Ž†‹’Ž›‹’‘”–Ȁ‡š’‘”–Ǥ
Š‡ ƒ’’Ž‹…ƒ–‹‘ ‹• ƒ†‡ ‹ “—ƒ†”—’Ž‹…ƒ–‡ ™‹–Š –Š‡ ˆ‡‡• •’‡…‹ϐ‹‡†ǡ ƒ† …ƒ „‡ ™‹–Š†”ƒ™ ™‹–Š‹ ͵Ͳ †ƒ›• ‘ˆ –Š‡
ƒ’’Ž‹…ƒ–‹‘Ǥ–‹•‹’‡”ƒ–‹˜‡–‘‘–‡–Šƒ–ǡˆ‘”ƒ––‡”•ƒŽ”‡ƒ†›’‡†‹‰„‡ˆ‘”‡–Š‡”‹„—ƒŽȀ‘—”–ǡ™‘—Ž†‘–„‡
ƒ†‹••‹„Ž‡—†‡”†˜ƒ…‡—Ž‹‰•‡’ƒ”ƒ–‡Ž›Ǥ
Š‡”—Ž‹‰—•–„‡ƒ†‡™‹–Š‹ͻͲ†ƒ›•‘ˆ–Š‡ƒ’’Ž‹…ƒ–‹‘Ǥ
Settlement Commission
‡––Ž‡‡– ‘‹••‹‘ Šƒ• „‡‡ …‘•–‹–—–‡† —†‡” –Š‡ —•–‘• …– –‘ ’”‘˜‹†‡ •’‡‡†› ”‡•‘Ž—–‹‘ ‘ˆ †‹•’—–‡•
’‡†‹‰„‡ˆ‘”‡ƒƒ†Œ—†‹…ƒ–‹‰ƒ—–Š‘”‹–›ǤŠ‡…ƒ•‡•…ƒ„‡”‡ˆ‡””‡†„›ƒ’’Ž‹…ƒ–•™‹–Š–Š‡‘‹••‹‘Ǥ
 826 Lesson 17 Ȉ EP-TL

…‡–Š‡…ƒ•‡‹••—„‹––‡†„‡ˆ‘”‡‹–ǡ‹–‡Œ‘›•‡š…Ž—•‹˜‡Œ—”‹•†‹…–‹‘‘˜‡”‹–ƒ†–Š‡…ƒ…‘•‡“—‡–Ž›’‡”ˆ‘”–Š‡
ˆ—…–‹‘•‘ˆƒ…—•–‘•‘ˆϐ‹…‡”ǡƒ†–Š‡”‡ƒˆ–‡”–Š‡…—•–‘•‘ˆϐ‹…‡”…ƒ‘–‹˜‡•–‹‰ƒ–‡ǡƒ†Œ—†‹…ƒ–‡‘”‹••—‡‘–‹…‡Ȁ
…‘””‹‰‡†—Ǥ
Š‡ƒ’’Ž‹…ƒ–‹‘™‹ŽŽ„‡†‹•’‘•‡†‡ˆˆ‡…–‹˜‡Ž›ƒ†•—‹–ƒ„Ž‡‘”†‡”•™‘—Ž†„‡‹••—‡†„›–Š‡‘‹••‹‘Ǥ
Š‡‘”†‡”•‘ˆ–Š‡‘‹••‹‘ƒ”‡‘Ȃƒ’’‡ƒŽƒ„Ž‡ǡŠ‘™‡˜‡”ǡƒ‡ƒ„Ž‡–‘™”‹–Œ—”‹•†‹…–‹‘‘ˆ‹‰Š‘—”–Ǥ
Š‡ƒ’’‡ŽŽƒ–•…ƒƒŽ•‘–ƒ‡–Š‡”‘—–‡‘ˆ”‹„—ƒŽȀ‹‰Š‘—”–ƒ†—’”‡‡‘—”–—†‡”–Š‡Ž‹–‹‰ƒ–‹‘‘†‡Ǥ

LESSON ROUND-UP

Ȉ Š‡‹•–Š‡ƒ—–Š‘”‹–›–‘ƒ’’‘‹–ƒ††‡•‹‰ƒ–‡‡•–ƒ„Ž‹•Š‡–•—†‡”–Š‡…–Ǥ

Ȉ Š‡–›’‡• ‘ˆ—•–‘• —–‹‡•ƒ”‡ ƒ•‹… —•–‘• —–› ȋȌǤȌǡ ‘—–‡”˜ƒ‹Ž‹‰ †—–› ȋȌƒ† ’‡…‹ƒŽ
††‹–‹‘ƒŽ—–›ȋȌƒ”‡‘™•—„•—‡†—†‡”
ǡ
‘’‡•ƒ–‹‘‡••ǡ”‘–‡…–‹˜‡—–›ǡƒˆ‡‰—ƒ”†
—–›ǡ‘•—„•‹†‹œ‡†ƒ”–‹…Ž‡•ǡ–‹Ǧ—’‹‰—–›Ǥ
Ȉ
‘‘†•„‡…‘‡Ž‹ƒ„Ž‡ˆ‘”†—–›™Š‡–Š‡›ƒ”‡‹’‘”–‡†‹–‘Ȁ‡š’‘”–‡†‘—–‘ˆ†‹ƒǤ
Ȉ Š‡”ƒ–‡•‘ˆ…—•–‘•†—–›ƒ”‡•’‡…‹ϐ‹‡†—†‡”–Š‡—•–‘•ƒ”‹ˆˆ…–Ǥ
Ȉ ‹•…ƒŽ…—Žƒ–‡†‘••‡••ƒ„Ž‡ƒŽ—‡ȋȌǤ
‹•…ƒŽ…—Žƒ–‡†‘–Š‡‡–‹”‡ƒ‘—–ȋ’Ž—•ƒŽŽ—•–‘•
—–‹‡•ȌǤ
‘’‡•ƒ–‹‘‡••ǡŽ‹‡
‹•…ƒŽ…—Žƒ–‡†‘ȋ’Ž—•ƒŽŽ—–‹‡•ȌǤ
Ȉ ƒ”‡Š‘—•‡• ƒŽŽ‘™ ‰‘‘†• –‘ „‡ •–‘”‡† ƒ† †‡ˆ‡”‡– ‘ˆ †—–›Ǥ Š‡ ‰‘‘†• ƒ”‡ –‘ „‡ ”‡Ž‡ƒ•‡† ˆ”‘ –Š‡
™ƒ”‡Š‘—•‡ǡ•—„Œ‡…––‘Dz…Ž‡ƒ”ƒ…‡dzǢ‹Ǥ‡ǤǡǢ’‘•–ƒ••‡••‡–ƒ†’ƒ›‡–‘ˆ—–›Ǥ
Ȉ Š‡—–›”ƒ™„ƒ…‹•ƒˆƒ…‹Ž‹–›–Šƒ–‡ƒ„Ž‡•–Š‡š’‘”–‡”–‘‘„–ƒ‹ƒ”‡ˆ—†‘ˆ–Š‡’‘”–—–‹‡•ȋ—•–‘•
—–›Ȍ’ƒ‹†‘‹’—–•ǡ™Š‹…Šƒ”‡’”‘…‡••‡†ˆ‘”ƒ—ˆƒ…–—”‡‘ˆ‰‘‘†•–‘„‡‡š’‘”–‡†Ǥ
Ȉ  –”ƒ•‹–ǡ –Š‡ ‰‘‘†• ”‡ƒ‹ ‹ –Š‡ •ƒ‡ ˜‡••‡Ž ƒ† …‘•‡“—‡–Ž› ”‡ƒ…Š –Š‡ ’‘”– ‘ˆ …Ž‡ƒ”ƒ…‡Ǥ 
–”ƒ•Š‹’‡–ǡŠ‘™‡˜‡”ǡ–Š‡˜‡••‡Žƒˆ–‡””‡ƒ…Š‹‰ƒ‹–‡”‡†‹ƒ–‡’‘”–ǡ–”ƒ•ˆ‡”•–Š‡‰‘‘†•–‘ƒ‘–Š‡”
˜‡••‡Žƒ†–Š‡•‡…‘†˜‡••‡Ž‹–‘™Š‹…Š–Š‡‰‘‘†•ƒ”‡–”ƒ•ˆ‡””‡†ȋŽ‘ƒ†‡†Ȍˆ”‘–Š‡ϐ‹”•–˜‡••‡Žǡ…ƒ””‹‡•
–Š‡‰‘‘†•–‘–Š‡†‡•–‹ƒ–‹‘’‘”–Ǥ
Ȉ Š‡…–ƒ†–Š‡—Ž‡•’”‘˜‹†‡™‡ŽŽ†‡ϐ‹‡†’”‘…‡†—”‡•ˆ‘”‹’‘”–Ȁ‡š’‘”–ƒ†–Š‡”‘Ž‡•ƒ†”‡•’‘•‹„‹Ž‹–‹‡•
‘ˆ–Š‡’ƒ”–‹‡•‹˜‘Ž˜‡†ǡ‹…Ž—†‹‰–Š‡’‘”–‡”ǡ–Š‡š’‘”–‡”ǡ–Š‡—•–‘†‹ƒǡ–Š‡—•–‘•ƒ†–Š‡ƒ””‹‡”Ǥ
Ȉ ƒ”‹‡†–›’‡•‘ˆƒ••‡••‡–•…‘—Ž†–ƒ‡’Žƒ…‡’”‡Ǧ’‘•–…Ž‡ƒ”ƒ…‡•ƒ†–Š‡”‡…‘—Ž†„‡…‹”…—•–ƒ…‡•–Šƒ–
…‘—Ž†ƒŽŽ‘™–Š‡”‡ˆ—†‘ˆ–Š‡‹’‘”–Ȁ–Š‡‡š’‘”–†—–›ǡ•—„Œ‡…––‘–‹‡Ž‹‡•ƒ†…‘†‹–‹‘•„‡‹‰ˆ—Žϐ‹ŽŽ‡†Ǥ
Ȉ Š‡ …– ’”‘˜‹†‡• ƒ† ‡—…‹ƒ–‡• …‹”…—•–ƒ…‡• ™Š‡”‡‹ –Š‡ ‰‘‘†• …ƒ „‡ …‘ϐ‹•…ƒ–‡† ‘” ϐ‹‡• ƒ†
’‡ƒŽ–‹‡•…ƒ„‡Ž‡˜‹‡†‹Ž‹‡—‘ˆ–Š‡…‘ϐ‹•…ƒ–‹‘Ǥ
Ȉ ˆˆ‡…‡•—†‡”–Š‡…–…‘—Ž†ƒ––”ƒ…–…‹˜‹Ž‘”…”‹‹ƒŽŽ‹ƒ„‹Ž‹–‹‡•‘”„‘–ŠǤ
Ȉ †˜ƒ…‡—Ž‹‰”‡ˆ‡”•–‘–Š‡†‡–‡”‹ƒ–‹‘ǡ„›–Š‡ƒ—–Š‘”‹–›ǡ‘ˆƒ“—‡•–‹‘‘ˆŽƒ™Ȁˆƒ…–•’‡…‹ϐ‹‡†‹–Š‡
ƒ’’Ž‹…ƒ–‹‘ǡ”‡‰ƒ”†‹‰–Š‡Ž‹ƒ„‹Ž‹–›–‘’ƒ›†—–›‹”‡Žƒ–‹‘–‘ƒƒ…–‹˜‹–›’”‘’‘•‡†–‘„‡—†‡”–ƒ‡„›ƒ
ƒ’’Ž‹…ƒ–Ǥ
Ȉ Š‡‡–”ƒŽ
‘˜‡”‡–ƒ›‹ˆ‹–†‡‡•‡…‡••ƒ”›–‘†‘•‘‹–Š‡‰‡‡”ƒŽ‹–‡”‡•–‘ˆ–Š‡’—„Ž‹…ǡ‡š‡’–
‰‘‘†•‰‡‡”ƒŽŽ›‘”•’‡…‹ϐ‹…ƒŽŽ›Ǥ
Lesson 17 Ȉ Overview of Customs Act 827

TEST YOURSELF
(These are meant for re-capitulation only. Answers to these questions are not to be submitted for evaluation.)
Multiple Choice Questions (MCQs)
ͳǤ ͳǤ ̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴…Šƒ”‰‡•ƒ”‡Ž‡˜‹‡†„›–Š‡’‘”–ƒ—–Š‘”‹–‹‡•‹ˆ‰‘‘†•ƒ”‡‘–…Ž‡ƒ”‡†™‹–Š‹͵†ƒ›•‘ˆ
—Ž‘ƒ†‹‰Ǥ
ƒȌ ‡—””ƒ‰‡
„Ȍ ƒ”‡Š‘—•‹‰
…Ȍ –‘”ƒ‰‡
†Ȍ ‘‡‘ˆ–Š‡„‘˜‡
•™‡”ǣȋƒȌ
ʹǤ ‡…–‹‘ͳͳͳ–‘‡…–‹‘ͳʹ͹‘ˆ—•–‘•…–ǡͳͻ͸ʹ†‡ƒŽ•™‹–Š
ƒȌ ƒ”‡Š‘—•‹‰‘ˆ‰‘‘†•
„Ȍ ‘ϐ‹•…ƒ–‹‘‘ˆ‰‘‘†•
…Ȍ ”ƒ™„ƒ…
†Ȍ
‘‘†•‹”ƒ•‹–
•™‡”ǣȋ„Ȍ
͵Ǥ ƒ”‡Š‘—•‡•ƒŽŽ‘™‰‘‘†•–‘„‡•–‘”‡†ƒ††‡ˆ‡”‡–‘ˆ†—–›ǤŠ‡
‘‘†•ƒ”‡–‘„‡”‡Ž‡ƒ•‡†ˆ”‘–Š‡ƒ”‡Ǧ
Š‘—•‡ǡ•—„Œ‡…––‘
ƒȌ ••‡••‡–
„Ȍ ƒ›‡–
…Ȍ Ž‡ƒ”ƒ…‡
†Ȍ ŽŽ‘ˆ–Š‡„‘˜‡
•™‡”ǣȋ†Ȍ
ͶǤ ǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǦǡ–Š‡˜‡••‡Žƒˆ–‡””‡ƒ…Š‹‰ƒ‹–‡”‡†‹ƒ–‡’‘”–ǡ–”ƒ•ˆ‡”•–Š‡‰‘‘†•
–‘ƒ‘–Š‡”˜‡••‡Žƒ†–Š‡•‡…‘†˜‡••‡Ž‹–‘™Š‹…Š–Š‡‰‘‘†•ƒ”‡–”ƒ•ˆ‡””‡†ȋŽ‘ƒ†‡†Ȍˆ”‘–Š‡ϐ‹”•–˜‡••‡Žǡ
…ƒ””‹‡•–Š‡‰‘‘†•–‘–Š‡†‡•–‹ƒ–‹‘’‘”–Ǥ
ƒȌ ”ƒ•‹–
„Ȍ ”ƒ•Š‹’‡–
…Ȍ ‘–Š‘ˆ–Š‡„‘˜‡
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ„Ȍ
ͷǤ 
•–ƒ†•ˆ‘”
ƒȌ –‡”ƒŽ
‡‡”ƒŽ‡‘
„Ȍ –‡”ƒ–‹‘ƒŽ
‡‡”ƒŽ‡‘
…Ȍ ’‘”–
‡‡”ƒŽƒ‹ˆ‡•–
†Ȍ ‘‡‘ˆ–Š‡ƒ„‘˜‡
•™‡”ǣȋ…Ȍ

LIST OF FURTHER READINGS

Ȉ —•–‘•ƒ™ƒ—ƒŽȂǤǤ ƒ‹
Ȉ †‹”‡…–ƒš‡•Ȃƒ™Ƭ”ƒ…–‹…‡ȂǤǤƒ–‡›
828 Lesson 17 Ȉ EP-TL
Test paper 829

EXECUTIVE PROGRAMME
TAX LAWS
EP-TL

WARNING
It is brought to the notice of all students that use of any malpractice in examination is misconduct as provided
in the explanation to regulation 27 and accordingly the registration of such students is liable to be cancelled or
terminated. the text of regulation 27 is reproduced below for information:
“27. Suspension and cancellation of examination results or registration.
in the event of any misconduct by a registered student or a candidate enrolled for any examination conducted
by the institute, the Council or any Committee formed by the Council in this regard, may suo motu or on receipt
‘ˆƒ…‘’Žƒ‹–ǡ‹ˆ‹–‹••ƒ–‹•ϐ‹‡†–Šƒ–ǡ–Š‡‹•…‘†—…–‹•’”‘˜‡†ƒˆ–‡”•—…Š‹˜‡•–‹‰ƒ–‹‘ƒ•‹–ƒ›†‡‡‡…‡••ƒ”›
and after giving such student or candidate an opportunity of being heard, suspend or debar him from appearing
in any one or more examinations, cancel his examination result, or registration as student, or debar him from
”‡Ǧ”‡‰‹•–”ƒ–‹‘ƒ•ƒ•–—†‡–ǡ‘”–ƒ‡•—…Šƒ…–‹‘ƒ•ƒ›„‡†‡‡‡†ϐ‹–Ǥ
 830 EP-TL

EXECUTIVE PROGRAMME
TAX LAWS – TEST PAPER
(This test paper is for practice and self study only and not to be sent to the Institute)

Time allowed: 3 hours Maximum Mark: 100

Note : All the references to sections mentioned in Part I of the Question Paper relate to the Income Tax Act,1961 and
relevant Assessment Year 2022-23, unless stated otherwise.

DIRECT TAXES (PART I) – 50 MARKS

1) Short term capital loss can be set-off as per provisions of section 74 of the Income Tax Act, 1961 from :
a) Short term capital gain
b) Short term capital gain and Long term capital gain
c) Long term capital gain
†Ȍ Š‘”––‡”…ƒ’‹–ƒŽ‰ƒ‹ƒ†’”‘ϐ‹–Ƭ‰ƒ‹ˆ”‘„—•‹‡••
2) A non-resident is not required to furnish return of income under section 139(1) if his total income during the
previous year consists of :
a) Income from Technical fee
b) Income from Interest/Dividends
c) Income from Royalty
d) Income from House Rent
3) Agriculture income from agriculture land located in a foreign country is taxable in the case of :
(A) Non-resident
(B) Not ordinarily resident
(C) Resident
ȋȌ ƒŽŽ…ƒ•‡••–ƒ–‡†‹ǡƬ
4) ”‘ϐ‹–•‘ˆ•ǤͳͲǡͲͲǡͲͲͲ‹•‡ƒ”‡†ˆ”‘ƒ„—•‹‡••‹™Š‹…Š‹•…‘–”‘ŽŽ‡†‹†‹ƒǡŠƒŽˆ‘ˆ–Š‡’”‘ϐ‹–•„‡‹‰
received in India. How much amount is taxable in India for a Non-resident individual:
a) Rs. 10,00,000
b) Nil
c) Rs. 5,00,000
d) Rs. 2,50,000
5) The maximum limit of rebate allowed under section 87A of the Income tax Act, 1961 in case of a non- resident
individual whose total income does not exceeds Rs. 5,00,000 during the previous year 2021- 22 is:
a) Rs. 12,500
b) Rs. 5,000
c) Rs. 10,000
d) Nil
 Test paper 831

6) In permanent establishment includes:

a) A person or a place
b) Construction site
c) Business preserve
d) All of the above
7) Mr. Sujit (aged 47 years), a doctor by profession based at Mumbai, earned an income from profession Rs.
34,00,000 and interest on bank deposit Rs. 2,00,000 (includes interest on saving bank interest Rs. 30,000). He
deposits Rs. 1,20,000 in public provident fund. Compute his taxable income for the assessment year 2022-23
(assuming assessee has not opted for section 115 BAC of the Income Tax Act, 1961)?
a) Rs. 34,10,000
b) Rs. 34,50,000
c) Rs. 34,60,000
d) Rs. 34,70,000
8) The basic exemption limit applicable to the Super Senior Citizen (Resident in India) Individual during the
previous year 2021-22 is:
a) Rs. 2,50,000
b) Rs. 3,00,000
c) Rs. 5,00,000
d) Nil
9) In case of Advance Ruling ‘AAR’, an applicant may withdraw an application within
from the date of the application:
a) 30 days
b) 45 days
c) 60 days
d) 90 days
10) Mr. Narendra (Aged 81) a resident of India during the previous year 2021-22 rendered services in India and
earned a salary Income of Rs. 4,80,000. Compute the tax liability of Mr. Narendra for the FY 2021- 22 in India
(assuming assessee has not opted for section 115 BAC of the Income Tax Act, 1961)?
a) Rs. 22,660
b) Rs. 24,720
c) Rs. 11,845
d) NIL
11) The Total Income of the assessee has been computed as Rs.1,25,794.90. The total income after rounding off
will be taken as:
a) Rs.1,25,700
b) Rs.1,25,790
c) Rs.1,25,795
d) Rs.1,25,700
 832 EP-TL

12) Š‡ ƒš‹— ƒ‘—– ‘ˆ Ž‡ƒ˜‡ •ƒŽƒ”› ‘– …Šƒ”‰‡ƒ„Ž‡ –‘ –ƒš ƒ• •’‡…‹ϐ‹‡† „› –Š‡
‘˜‡”‡– ‹ …ƒ•‡ ‘ˆ
government employee is:
a) Rs. 3 Lakhs
b) Rs. 5 Lakhs
c) Rs. 10 Lakhs
d) Fully Exempt
13) ”Ǥ
ƒ‡•Š‹•ƒ‡’Ž‘›‡†‹”‹˜ƒ–‡–†Ǥ–Š‡’”‡˜‹‘—•›‡ƒ”ǡŠ‡”‡…‡‹˜‡†ƒ•ƒŽƒ”›‘ˆ•Ǥ͵͸ǡͲͲͲ’‡”
month and entertainment allowance of Rs. 2,000 per month. He spent Rs. 10,000 on entertainment allowance.
Calculate the amount of deduction under section 16(ii):
a) Rs. 24,000
b) Rs. 10,000
c) Rs. 5,000
d) Nil
14) Sohan has stayed in India during the Previous Year 2021-22 for 181 days, and he is a non-resident in 9 out
of 10 years immediately preceding the current Previous Year. He has stayed in India for 365 days in all in
the 4 years immediately preceding the relevant Previous Year; and 480 days in all the 7 years immediately
preceding the current Previous Year. His residential status for AY 2022-23 would be?
a. ‡•‹†‡–Ƭ”†‹ƒ”‹Ž›‡•‹†‡–
b. ‡•‹†‡–„—–‘–”†‹ƒ”‹Ž›‡•‹†‡–
c. Non-resident
d. Not ascertainable
15) Which of the following is not exempt under section 10?
a. Šƒ”‡‹…‘‡‘ˆƒ‡„‡”ˆ”‘ƒ
b. Šƒ”‡‹…‘‡‘ˆƒ’ƒ”–‡”ˆ”‘ƒϐ‹”
c. ƒŽƒ”›”‡…‡‹˜‡†„›ƒ’ƒ”–‡”ˆ”‘–Š‡ϐ‹”
d. ‘–Šȋ„ȌƬȋ…Ȍ
16) For the purposes of determining the perquisite value of the loan at a concessional rate given to the employee, the
lending rate of .................................................. as on the .......................................................................................... day of the relevant
PY is required, for loans exceeding INR ................................
a. SBI, 1st, 20000
b. ICICI, last, 50000
c. SBI, last, 50000
d. ICICI, 1st, 20000
17) Deduction u/s 24(a) is?
a. 1/3rd of NAV
b. Repairs actually incurred by the owner
c. 30% of NAV
d. Interest on borrowed Capital
 Test paper 833

18) Mr. Ravi solved a crossword puzzle and received Rs. 1,68,000 after deduction of tax at source. His income from
crossword puzzle chargeable to tax would be :
a. Rs. 1,68,000
b. Nil
c. Rs. 1,44,000
d. Rs. 2,40,000
19) Which of the following is not a revenue receipt?
i. Compensation received for the loss of a capital asset
ii. Compensation received for damage to or loss of a trading asset.
iii. ”‘ϐ‹–•‘’—”…Šƒ•‡ƒ†•ƒŽ‡‘ˆ•Šƒ”‡•„›ƒ•Šƒ”‡„”‘‡”‘Š‹•‘™ƒ……‘—–Ǥ
iv. Income from letting out buildings owned by a company to its employees etc
a) i only
b) i and ii both
c) i , ii, and iii
d) All of the above
20) Ȁ•ͷͶǡ…ƒ’‹–ƒŽ‰ƒ‹•ƒ”‡‡š‡’–‡†ǡ‹ˆ‹˜‡•–‡†‹–Š‡„‘†•‹••—‡†„›Ƭǡ‘”‘–Š‡”‘–‹ϐ‹‡†„‘†•ǡ
within?
a. 6 months from date of transfer of asset
b. 6 months from end of relevant PY
c. ͸‘–Š•ˆ”‘‡†‘ˆ‘”†ƒ–‡‘ˆϐ‹Ž‹‰‘ˆ”‡–—”™Š‹…Š‡˜‡”‹•‡ƒ”Ž‹‡”
d. Anytime during the PY
21) ”Ǥƒ…‹–‹œ‡ǡ…ƒ‡–‘†‹ƒˆ‘”–Š‡ϐ‹”•––‹‡†—”‹‰–Š‡ ʹͲͳ͸Ǧͳ͹Ǥ‹••–ƒ›‹†‹ƒˆ‘” ʹͲͳ͸Ǧͳ͹ǡ
2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 are as follows:

Financial Year No. of days in stay in India

2016-17 55
2017-18 60
2018-19 85
2019-20 90
2020-21 100
2021-22 70
 ‡–‡”‹‡–Š‡”‡•‹†‡–‹ƒŽ•–ƒ–—•‘ˆ”Ǥ‹†‹ƒ†—”‹‰–Š‡ ʹͲʹͳǦʹʹǫ
a) ‡•‹†‡–ƒ†”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
b) ‡•‹†‡–„—–‘–”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
c) Non-Resident
d) Cannot be determined
 834 EP-TL

22) Ram succeeded to the business of his father Ramanuj consequent upon demise of Mr. Ramanuj on 1-2-2020.
Ram recovered Rs. 60,000 due from a customer which was written off by late Ramanuj as bad debt and allowed
in the assessment year 2013-14. The amount recovered is :
a) Exempt from tax
b) Fully taxable as business income
c) Rs. 30,000 being 50% taxable as business income
d) To be set off against current year bad debts
23) ’’‡ƒŽ–‘‹‰Š‘—”–ƒ‰ƒ‹•––Š‡‘”†‡”‘ˆ‹•ϐ‹Ž‡†™‹–Š‹ǣ
a) 30 Days
b) 60 Days
c) 90 Days
d) 120 Days
24) Š‡–‡”Ǯ‘’ƒ›ǯ†‡ϐ‹‡†—†‡”•‡…–‹‘ʹȋͳ͹Ȍ‘ˆ–Š‡…‘‡ƒš…–ǡͳͻ͸ͳ‹…Ž—†‡•ǣ
i. any Indian company
ii. any body corporate incorporated by or under the laws of a country outside India i.e. a foreign company,
iii. any institution, association or body which is or was assessable or was assessed as a company for any
assessment year under the Indian Income Tax Act, 1922 or which is or was assessable or was assessed
under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970
a) Ž›‹
b) i and ii both
c) i , ii and iii
d) none of the above
25) Deduction u/s 80C, in respect of Life Insurance Premium, Contribution to Provident Fund etc., is allowed to?
a. Any assessee
b. An individual
c. ‹†‹˜‹†—ƒŽȀ
d. ‹†‹˜‹†—ƒŽȀ ”‡•‹†‡–‹†‹ƒ
26) Income from a minor child from a Fixed Deposit with a bank, made out of income earned from scholarship, is
to be?
a. Assessed in the hands of the minor child
b. Clubbed with the income of the parent whose total income before such clubbing is higher
c. Exempted from tax
d. Clubbed with father’s income
27) Mr. Shyam received cash gift of Rs. 61,000 from his friends on the occasion of his 55th birthday. None of the
friends are relative. The amount taxable in the hands of Mr. Shyam would be :
a) Nil
b) Rs. 11,000
c) Rs. 61,000
d) None of the above
 Test paper 835

28) ”Ǥƒ•Š†‡”‹˜‡†‹…‘‡ˆ”‘•ƒŽ‡‘ˆ–‡ƒƒ—ˆƒ…–—”‡†ƒ†‰”‘™‹–Š‡˜‹ŽŽƒ‰‡‘ˆƒƒ–ƒƒǤ‹•‹…‘‡

for the previous year 2021-22 from the said activity is Rs. 40 lakhs. The amount exempt from tax by way of
agricultural income is :
a) Rs. 16 lakhs (40%)
b) Rs. 10 lakhs (25%)
c) Rs. 24 hkns (60%)
d) Rs. 14 lakhs (35%)
29) Joy Charitable Trust (registered under section 12AA) has total income of Rs. 40 lakhs. It applied Rs. 20 lakhs
towards its objects. How much is chargeable to tax in case the trust does not opt for accumulation of income
under section 11(2) of the Act?
a) Rs. 20 lakhs
b) Rs. 14 lakhs
c) Rs. 10 lakhs
d) Rs. 6 lakhs
30) Cost of Acquisition in case of bonus shares allotted for computing the capital gains would be.
a) FMV of the shares on the date of allotment
b) Nil
c) Cost of original shares
d) None of the above
31) Which of the following is capital receipt?
a) Reimbursement of capital outlay if the total amount received exceeds the cost of the outlay
b) Compensation received for the loss of a capital asset
c) Both i and ii
d) None of the above
32) ‘‰‡––Š‡„‡‡ϐ‹–•‘ˆǡ‹–‹•‡…‡••ƒ”›–Šƒ–‹…‘‡‘ˆ–Š‡••‡••‡‡‹•ǣ
a) Taxable in the Foreign Country only
b) Doubly taxable with the country with whom India has DTAA Agreement.
c) Is Taxable in India only
d) None of the all
33) ”Ǥǡƒ”‹–‹•Š…‹–‹œ‡ǡ…ƒ‡–‘†‹ƒˆ‘”–Š‡ϐ‹”•––‹‡‘ͳ͸ǤͲͳǤʹͲʹʹˆ‘”–Š‡’—”’‘•‡‘ˆ‡’Ž‘›‡–‹†‹ƒǤ
Determine residential status of Mr. B in India during the FY 2021-22?
a) ‡•‹†‡–ƒ†”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
b) ‡•‹†‡–„—–‘–”†‹ƒ”‹Ž›‡•‹†‡–Ǯǯ
c) Non-Resident
d) Cannot be determined
 836 EP-TL

34) Bad debts is deductible in the year:

a) When provision for bad debts are made
b) Š‡†‡„–•‹•ϐ‹”•––‹‡™”‹––‡ƒ•„ƒ†
c) When debts was incurred
d) When it became time-barred debt
35) Š‡–ƒšƒ„Ž‡’‡”“—‹•‹–‡•˜ƒŽ—‡‘ˆ—†‡”•‡…–‹‘ͳ͹ȋʹȌȋ˜‹Ȍ‘ˆ–Š‡…‘‡–ƒš…–ǡͳͻ͸ͳ‹•ǣ
a) FMV of the shares on the grant date less any exercise price recovered from an employee.
b) FMV of the shares on the vesting date less any exercise price recovered from an employee.
c) FMV of the shares on the exercise date less any exercise price recovered from an employee.
d) None of the above
36) An income which accrue or arise in India from a business controlled or profession set-up in India is taxable
in case of:
a) Resident only
b) Not ordinarily resident only
c) Non-resident
d) All assessee
37) Mr. Sumit (aged 67 years), a non-resident in India, has a total income of Rs. 25,00,000 during the previous
year 2021-22. This income includes foreign source income of Rs. 6,00,000 from a country with which India
has DTAA to avoid double taxation. Tax levied by the foreign country on that foreign income was Rs. 1,50,000,
Compute the tax liability of Mr. Sumit in India for the FY 2021-22? (assuming assessee has not opted for
section 115BAC of the Income Tax Act, 1961)
a) Rs. 4,06,850
b) Rs. 3,63,075
c) Rs. 4,01,700
d) Rs. 3,95,200
38) Š‡‡”–‹ϐ‹…ƒ–‡‹••—‡†„›ƒ‡’Ž‘›‡”–‘Š‹•‡’Ž‘›‡‡•‹…ƒ•‡‘ˆ•ƒŽƒ”›‹…‘‡‹•
a) Form 16
b) Form 26
c) Form 26Q
d) Form 27A
39) Which of the following income is / are exempt from tax?
a) ƒ›‡–•”‡…‡‹˜‡†ˆ”‘ˆƒ‹Ž›‹…‘‡„›ƒ‡„‡”‘ˆƒ
b) Šƒ”‡‘ˆ’”‘ϐ‹–”‡…‡‹˜‡†„›ƒ’ƒ”–‡”‘ˆƒ’ƒ”–‡”•Š‹’ϐ‹”Ǥ
c) Any income of an educational institution and hospitals
d) All of the above
 Test paper 837

40) ”Ǥ ‘›ǡ “—ƒŽ‹ˆ›‹‰ ƒ•  ‹ †‹ƒ †—”‹‰ –Š‡ ‹ƒ…‹ƒŽ ‡ƒ” ʹͲʹͳǦʹʹǡ Šƒ˜‹‰ ƒ –ƒšƒ„Ž‡ ‹…‘‡ ‘ˆ •Ǥ
ͳǡͷͲǡͲͲͲǤ‡‘™•ƒŠ‘—•‡’”‘’‡”–›‹ǤŠ‡–Š‡””Ǥ‘›‹•”‡“—‹”‡†–‘ϐ‹Ž‡‹–•”‡–—”‘ˆ…‘‡‹†‹ƒ
for the Financial Year 2021-22?
a) ‡•ǡƒ•Š‡‹•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”Ǥ
b) ‡•ǡƒ•Š‡‹•‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ƒ†‘™•ƒŠ‘—•‡’”‘’‡”–›‘—–•‹†‡†‹ƒǤ
c) No, as the taxable income does not exceeds the maximum amount not chargeable to tax.
d) None of the above.
41) ”Ǥƒ‰Š—ǡƒ‰‡†ͺͷȋȌǡŠƒ˜‹‰–ƒšƒ„Ž‡‹…‘‡‹••ǤͷǡͲͲǡͲͲͲ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”ʹͲʹͳǦʹʹǤŠ‡–ƒš
amount will be
a) Rs. 25,750
b) Rs. 12,875
c) Rs. 10,400
d) Nil
42) An authority of advance shall have the following powers:
i. Discovery and inspection
ii. Enforcing the attendance of person and examining him an oath
iii. Compelling the production of books and account and other documents
a) (i) only
b) (i) and (ii) only
c) (i) and (iii) only
d) (i) (ii) and (iii)
43) In which of the following cases, income of previous year is assessable in the previous year itself:
i. Assessment of persons leaving India
ii. A person who is into illegal business
iii. A person who is running a charitable institution
a) (i) only
b) (i) and (ii) only
c) (i) and (iii) only
d) (i) (ii) and (iii)
44) ”Ǥ—”Œ‹–ǡƒ‘Ǧ”‡•‹†‡–‹†‹ƒ†—”‹‰–Š‡’”‡˜‹‘—•›‡ƒ”’ƒ›‹‰…‘•—Ž–ƒ…›ˆ‡‡•‘ˆ•ǤͷͲŽƒŠ•–‘–†Ǥ
(a non-resident foreign company). The consultancy fees has been paid in connection with a project/ liaison
‘ˆϐ‹…‡‹†‹ƒǤ†‡”™Š‹…Š•‡…–‹‘”Ǥ—”Œ‹–‹•‘„Ž‹‰ƒ–‹‘–‘†‡†—…––ƒšƒ–•‘—”…‡‘–Š‡ƒ„‘˜‡’ƒ›‡–ǫ
a) Section 194J of the Income tax Act, 1961
b) Section 195 of the Income tax Act, 1961
c) No TDS is required to be deducted
d) None of the above
 838 EP-TL

45) An assessee, engaged in the business of growing and manufacturing tea in India, the agricultural income in
that case shall be:
a) 40% of the income from such business
b) 60% of the income from such business
c) Market value of the agricultural produce minus expenses on cultivation of such produce
d) 75 % of the Income from such business
46) Mr. Chanchal received a gift of Rs. 80,000 from his friend on the occasion of his own marriage. The amount
shall be:
a) Taxable
b) Taxable subject to standard deduction of 30%
c) Not taxable
d) None of the above
47) Section 80QQB of the Income tax act deals with:
a) Royalty Income of authors
b) Royalties from Patent
c) –‡”‡•–‘‡„‡–—”‡•‘ˆ
‘˜–Ǥ‘’ƒ›
d) ”‘ϐ‹–•ˆ”‘‡š’‘”–‘ˆ•‘ˆ–™ƒ”‡
48) Transfer of income without transfer of asset would be taxable in the hands of:
a) Transferor only
b) Transferee only
c) Either transferor or transferee
d) Both transferor and transferee
49) ƒ–‹‘ƒŽ”ƒ†‡”•ƒ’ƒ”–‡”•Š‹’ϐ‹”’ƒ‹†•Ǥͳǡ͸ͲǡͲͲͲƒ•…‘–”ƒ…–…Šƒ”‰‡•–‘‹ƒŽ’Ƭ‘Ǥȋϐ‹”ȌǤ‘–ƒš™ƒ•
deducted at source for the above said payment. The amount liable for disallowance under section 40a(ia) for
the assessment year 2022-23 is :
a) Nil
b) Rs. 1,60,000
c) Rs. 80,000
d) Rs. 48,000
50) Š‡ˆ‘ŽŽ‘™‹‰…‘†‹–‹‘—•–„‡•ƒ–‹•ϐ‹‡†ˆ‘”…Žƒ‹‰‡š’‡†‹–—”‡—†‡”•‡…–‹‘͵͹™Š‹Ž‡…‘’—–‹‰’”‘ϐ‹–•
and gains from business and profession :
a) The expenditure must not be in capital nature
b) The expenditure must not be in personal nature
c) The expenditure must be incurred wholly and exclusively for the purpose of business or profession.
d) All of the above
 Test paper 839

INDIRECT TAXES (PART II) – 50 MARKS

51. …‘–ƒ‹•–Š‡’‘™‡”–‘ƒ‡Žƒ™•™‹–Š”‡•’‡…––‘
Ǥ
a) Article 246A
b) Article 246
c) Article 254
d) Article 264
52.
…ƒ‡‹–‘ˆ‘”…‡„›–Š‡ Constitutional Amendment Act.
a) 111
b) 101
c) 102
d) 110
53. ‡…–‹‘ͳͲ‘ˆ–Š‡
…–ǡʹͲͳ͹…‘–ƒ‹•’”‘˜‹•‹‘•”‡Žƒ–‡†–‘ .
a) Forward Charge Mechanism
b) Reverse Charge Mechanism
c) Composition Levy
d) Time of supply of goods
54. Šƒ–‹•–Š‡–Š”‡•Š‘Ž†Ž‹‹–‘ˆ–—”‘˜‡”‹–Š‡’”‡…‡†‹‰ϐ‹ƒ…‹ƒŽ›‡ƒ”ˆ‘”‘’–‹‰–‘’ƒ›–ƒš—†‡”…‘’‘•‹–‹‘
scheme for States other than special category States?
a) Rs. 1.5 Crore
b) Rs. 1 Crore
c) Rs. 75 Lacs
d) Rs. 50 Lacs
55. ƒ”ƒ˜ Ƭ ‘’ƒ›  ‹• ƒ ”‡‰‹•–‡”‡† ’‡”•‘ —†‡” 
 …–ǡ ʹͲͳ͹Ǥ – Šƒ• ƒ‹–ƒ‹‡† „‘‘• ‘ˆ ‹ƒ…‹ƒŽ
‡ƒ”ʹͲͳͺǦͳͻƒ†–Š‡
ƒ—ƒŽ”‡–—”™ƒ•ƒŽ•‘ϐ‹Ž‡†„‡ˆ‘”‡–Š‡†—‡†ƒ–‡Ǥ’–‘™Šƒ–’‡”‹‘†ǡ–Š‡„‘‘•‘ˆ
ƒ……‘—–ƒ†ƒ…‹ŽŽƒ”›”‡…‘”†•‘ˆ–Š‡ϐ‹ƒ…‹ƒŽ›‡ƒ”ʹͲͳͺȂͳͻŠƒ˜‡–‘„‡”‡–ƒ‹‡†„›‹–ǫ͹ʹ‘–Š•ˆ”‘–Š‡
due date of furnishing the annual return the books of account and ancillary records have to be retained by it48
months from the due date of furnishing the annual return the books of account and ancillary records have to
be retained by it
a) 60 months from the due date of furnishing the annual return the books of account and ancillary records
have to be retained by it
b) 84 months from the due date of furnishing the annual return the books of account and ancillary records
have to be retained by it
56. Ƭ‘Ǥ•‘Ž†’”‘†—…–ǡ”‘†—…–ƒ†”‘†—…–ƒ•‹š‡†•—’’Ž›Ǥˆ•‘Ž†•‡’ƒ”ƒ–‡Ž›–Š‡ƒ’’Ž‹…ƒ„Ž‡

”ƒ–‡•ƒ”‡ͷΨǡͳʹΨƒ†ʹͺΨ”‡•’‡…–‹˜‡Ž›ǤŠƒ–
”ƒ–‡™‘—Ž†ƒ’’Ž›™Š‡–Š‡›ƒ”‡•—’’Ž‹‡†–‘‰‡–Š‡”ǫ
a) 5% i.e. least rate
b) 12% i.e. standard rate
c) 28% i.e. highest rate
d) 15% i.e. average rate
 840 EP-TL

57. ’—–‡”˜‹…‡‹•–”‹„—–‘”ȋȌƒ›†‹•–”‹„—–‡–Š‡

…”‡†‹–™‹–Š‹–Š‡–ƒ–‡ƒ•ǣ
a) 

b) 

c) 

d) Any of the above
58. Š‡–ƒš—†‡”
Ž‡‰‹•Žƒ–‹‘‹†‹ƒ‹•„‡‹‰Ž‡˜‹‡† .
a) š…Ž—•‹˜‡Ž›„›‹‘ƒ†–ƒ–‡ƒ™•
b) ‹—Ž–ƒ‡‘—•Ž›„›‹‘ƒ†–ƒ–‡ƒ™•
c) Ž›„›‹‘ƒ™•
d) Ž›„›–ƒ–‡ƒ™•
59. Ƭ‘Ǥ„‘—‰Š–ƒƒ…Š‹‡ˆ‘”•Ǥ͵ŽƒŠ•‘ͲͳǤͲͶǤʹͲͳͻ’Ž—•
‘‘†•ƒ†‡”˜‹…‡•ƒš̷ͳͺΨ™ƒ•…Šƒ”‰‡†‘‹–Ǥ
The goods manufactured became chargeable w.e.f. 01.08.2020. How much of ITC on such machinery purchase
…‘—Ž†„‡ƒ˜ƒ‹Ž‡†ƒˆ–‡”–Š‡‰‘‘†•ƒ—ˆƒ…–—”‡†„›‹–„‡…ƒ‡–ƒšƒ„Ž‡—†‡”
ǫ
a) Rs. 54,000
b) Rs. 27,000
c) Rs. 37,800
d) Rs. 40,500
60. Which of the following is considered as Inter State Supply?
a) —’’Ž‹‡•”‡…‡‹˜‡†ˆ”‘—‹–‹‘‹†ƒ–‘‘‡•–‹…ƒ”‹ˆˆ”‡ƒ
b) —’’Ž‹‡•ƒ†‡–‘†‡˜‡Ž‘’‡”‹ƒ†Žƒˆ”‘‡”ƒŽƒ
c)
‘‘†•‹’‘”–‡†ˆ”‘ ƒ’ƒ
d) All of the Above
61. Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰…ƒŽŽ‡†–Š‡‹‘‡””‹–‘”›ƒ•„‡‹‰…‘˜‡”‡†—†‡”‹‘‡””‹–‘”›
‘‘†•ƒ†‡”˜‹…‡
ƒš…–ȋ
ȌǡʹͲͳ͹ǫ
a) Delhi
b) Ponducherry
c) Daman and Diu
d) All of the above
62. Which of the following utilization of input tax credit is permitted ?
a) ‘ˆ
ƒ‰ƒ‹•–

b) ‘ˆ
ƒ‰ƒ‹•–

c) ‘”
ƒ‰ƒ‹•–

d) ‘ˆ
ƒ‰ƒ‹•–

63. In arriving at C.I.F. Value under Customs, the insurance can be taken at actual, capped to?
a) ʹͲΨ‘ˆ ǤǤǤ
b) 20% of C.I.F.
…Ȍ ͳǤͳʹͷΨ‘ˆ ǤǤǤ
d) 1.125% of C.I.F.
 Test paper 841

64. When an e-way bill is not required to be generated?

a) Š‡”‡–Š‡‰‘‘†•„‡‹‰–”ƒ•’‘”–‡†ƒ”‡•’‡…‹ϐ‹‡†‹‡š—”‡–‘—Ž‡ͳ͵ͺ‘ˆ–Š‡
—Ž‡•
b) Where the goods are being transported from the customs port, airport, air cargo complex and land
customs station to an inland container depot or a container freight station for clearance by Customs
c) Where the goods are being transported by a non-motorized conveyance
d) All of the above cases
65. ‘•—Ž–ƒ–•ǡ”‡‰‹•–‡”‡†ƒ–‡ŽŠ‹’”‘˜‹†‡•
–”ƒ‹‹‰–‘‡’Ž‘›‡‡•‘ˆƬ‘Ǥƒ–ƒ‹’ƒ–ǡƒ”›ƒƒǤ
Ƭ‘Ǥ‹•—”‡‰‹•–‡”‡†—†‡”
…–Ǥ–Š‹•…ƒ•‡ǡ™Š‹…Š‹•–Š‡’Žƒ…‡‘ˆ•—’’Ž›ǫ
a) Delhi
b) Haryana
c) Both of the above
d) None of the above
66. Š‹…Š•‡…–‹‘‘ˆ
…–ʹͲͳ͹†‡ƒŽ•™‹–Š’Žƒ…‡‘ˆ—’’Ž›‘ˆ•‡”˜‹…‡•ǡ™Š‡”‡Ž‘…ƒ–‹‘‘ˆ•—’’Ž‹‡”ƒ†”‡…‹’‹‡–
is in India?
a) Section 9
b) Section 10
c) Section 11
d) Section 12
67. ‘ˆ
…–ǡʹͲͳ͹Ž‹•–•†‘™–Š‡ƒ…–‹˜‹–‹‡•™Š‹…Š•ŠƒŽŽ„‡–”‡ƒ–‡†‡‹–Š‡”ƒ••—’’Ž›‘ˆ‰‘‘†•‘”•—’’Ž›
of services.
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
68. 
…–ǡʹͲͳ͹™ƒ•’ƒ••‡†„›ƒ”Ž‹ƒ‡–‘–Š‡„ƒ•‹•‘ˆ .
a) Article 246A
b) Article 268A
c) Article 269A
d) Article 279A
69. ‘ˆ
…–ǡʹͲͳ͹Ž‹•–•†‘™–Š‡–”ƒ•ƒ…–‹‘•™Š‹…Š‡˜‡™‹–Š‘—–…‘•‹†‡”ƒ–‹‘ƒ”‡…‘•–”—‡†ƒ••—’’Ž›Ǥ
a) Schedule I
b) Schedule II
c) Schedule III
d) Schedule IV
 842 EP-TL

70.
‹ˆ–•ƒ†‡„›‡’Ž‘›‡”–‘ƒ›‡’Ž‘›‡‡—’–‘ in any Financial Year shall not be treated
ƒ••—’’Ž›—†‡”
Žƒ™•Ǥ
a) INR 25,000
b) INR 50,000
c) INR 2,00,000
d) INR 5,00,000
71. Š‡ˆ‡ƒ–—”‡•‘ˆƒ…‘’‘•‹–‡•—’’Ž›—†‡”
ƒ”‡ǣ
a) Two or more taxable supplies of goods / services / both which are supplied in conjunction with each
other
b) They are naturally bundled
c) ‡‘ˆ–Š‡•—’’Ž‹‡•™‹–Š‹–Š‡’ƒ…ƒ‰‡‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ•ƒ’”‹…‹’ƒŽ•—’’Ž›
d) All of the above
72. Š‡ˆ‡ƒ–—”‡•‘ˆƒ‹š‡†•—’’Ž›—†‡”
ƒ”‡ǣ
a) Two or more taxable supplies of goods / services / both which are supplied in conjunction with each
other
b) They are deliberately bundled
c) ‘‡‘ˆ–Š‡•—’’Ž‹‡•™‹–Š‹–Š‡’ƒ…ƒ‰‡‹•‹†‡–‹ϐ‹ƒ„Ž‡ƒ•ƒ’”‹…‹’ƒŽ•—’’Ž›
d) All of the above
73. ™Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰•‹–—ƒ–‹‘•—†‡”
Žƒ™•†‡Ž‹˜‡”›…ŠƒŽŽƒ™‹ŽŽ„‡”‡“—‹”‡†–‘„‡‹••—‡†‹•–‡ƒ†‘ˆ
invoice?
a) Transportation of goods for job work
b) Transportation of goods for reasons other than by way of supply
c) Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier
is not known
d) All of the above
74. ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ’”‘˜‹†‡•ˆ‘”…‘ϐ‹•…ƒ–‹‘‘ˆ‹’”‘’‡”Ž›‹’‘”–‡†‰‘‘†•Ǥ
a) Section 110
b) Section 111
c) Section 112
d) Section 113
75. “Improperly exported goods” under Customs Act, 1962 mean .
a) Attempted to export prohibited goods
b) ––‡’–‡†–‘„‡‡š’‘”–‡†–Š”‘—‰Šƒ›”‘—–‡‘–Š‡”–Šƒ‘–‹ϐ‹‡†”‘—–‡
c) Attempted to export goods found concealed in a package
d) All of the above
 Test paper 843

76. ‘ˆ–Š‡—•–‘•…–ǡͳͻ͸ʹ†‡ƒŽ•™‹–Š‘˜‡›ƒ…‡•™Š‹…Šƒ”‡Ž‹ƒ„Ž‡–‘…‘ϐ‹•…ƒ–‹‘Ǥ
a) Section 112
b) Section 113
c) Section 114
d) Section 115
77. What is the time limit beyond which if goods are not returned, the inputs sent for job work shall be treated as
supply?
a) Six months
b) ‡‡ƒ”
c) Five Years
d) Seven Years
78. In case of goods received in instalments or lot, when can a registered person entitled to take ITC?
a) ––Š‡–‹‡‘ˆϐ‹”•–‹•–ƒŽ‡–‘”Ž‘–”‡…‡‹˜‡†
b) At the time of last instalment or lot received
c) At the time of 50% of instalment or lot received
d) None of the above
79. Who are the person compulsorily liable for registration?
a) Casual taxable person
b) Input Service Distributor
c) persons who are required to deduct TDS
d) All of the above
80. Ms. Rita a Practicing Company Secretary registered at Haryana travels to Delhi for business purpose and stays
at hotel Leela in Delhi. In this case, which is the place of supply?
a) Haryana
b) Delhi
c) Chandigarh
d) None of the above
81. Which place will be considered as Place of Supply if goods are supplied on board of aircraft?
a) Location at which such goods are taken on board
b) Location at which such goods are consumed
c) ‘…ƒ–‹‘ƒ–™Š‹…Šƒ‹”…”ƒˆ–ƒ””‹˜‡†ƒ–ϐ‹ƒŽ†‡•–‹ƒ–‹‘
d) None of the above
82. Š‹…Š•‡…–‹‘‘ˆ
…–ǡʹͲͳ͹†‡ƒŽ•™‹–Š‹‡‘ˆ•—’’Ž›‘ˆ‰‘‘†•ǫ
a) Section 12
b) Section 13
c) Section 14
d) Section 15
83. If a dealer is liable to be registered on 18th January 2021 and he has applied for registration on 1st February,
2021, what is the effective date of registration?
a) 1st February, 2021
b) 18th January, 2021
c) 17th February, 2021
d) 16th February, 2021
 844 EP-TL

84. Š‡–‡”Ǯ–ƒšƒ„Ž‡’‡”•‘ǯ—†‡”–Š‡
Žƒ™‡ƒ• Ǥ
a) A person who is registered
b) A person who is liable to be registered
c) Both (a) and (b)
d) None of the above
85. The supplier registered under Composition Levy Scheme cannot .
a) Claim ITC
b) Collect tax on supply
c) Raise Tax Invoice
d) All of the above
86. Mr. A registered person in Delhi, is supplier of mobile Phone. Mr. B unregistered person resides in Bihar, came
to Delhi for IAS coaching, bought one mobile Phone from Mr. A. Which is the place of supply in this situation?
a) Delhi
b) Bihar
c) Any of A or B
d) None of the above
87. Which of the following value is taken as value of a supply of goods or services or both, as per the provisions of
‡…–‹‘ͳͷ‘ˆ
…–ʹͲͳ͹ǫ
a) MRP
b) Transaction Value
c) Notional Value
d) None of the above
88. Šƒ–•ŠƒŽŽ„‡‡š…Ž—†‡†ˆ‘”†‡–‡”‹‹‰˜ƒŽ—‡‘ˆ—’’Ž›—†‡”•‡…–‹‘ͳͷ‘ˆ
…–ʹͲͳ͹
a) Packing Charges
b) Freight charges
c) Discounts offered to customers and recorded in the invoice
d) All of the above
89. Š‡‹‘–‡””‹–‘”›
‘‘†•Ƭ‡”˜‹…‡•…–ǡʹͲͳ͹‹•ƒ’’Ž‹…ƒ„Ž‡‘ǣ
a) Inter-state supply of goods or services or both by union territories
b) Intra-state supply of goods or services or both by union territories
c) Both (a) and (b)
d) None of the above
90. To calculate projected revenue of state for compensation, what is the projected nominal growth rate of
revenue?
a) 12%
b) 14%
c) 16%
d) 18%
 Test paper 845

91. Where the registered person has claimed Depreciation on the ----------------------------------- ‘ˆ–Š‡ƒ’‹–ƒŽ
‘‘†•ǡ
ITC shall not be allowed.
a) Cost
b) Tax Component of Cost
c) Both
d) None of the above
92. Sec.111 to Sec. 127 of Customs Act, 1962 deals with .
a) Warehousing of goods
b) ‘ϐ‹•…ƒ–‹‘‘ˆ‰‘‘†•
c) Types of Duties
d) None of the above
93. Which of the following is not considered as Intra state Supply?
a) —’’Ž‹‡•–‘ƒ†„›
b) Imported goods till they cross the customs frontiers of India
c) Supplies made to a foreign tourist taking the goods out of India
d) All of the above
94. ”Ǥ”‡‰‹•–‡”‡†’‡”•‘Šƒ˜‹‰Š‡ƒ†‘ˆϐ‹…‡‹––ƒ””ƒ†‡•Šƒ†‹–ǯ•‘‡‘ˆ–Š‡”ƒ…Š‘ˆϐ‹…‡‹•‹‡•–‡‰ƒŽǤ
”‘–Š‡„”ƒ…Š‘ˆϐ‹…‡ǡ”Ǥ•—’’Ž›–‘‘Ž•–‘”Ǥ”‡‰‹•–‡”‡†‹ƒŒƒ•–ŠƒǤŠ‹…Š‹•–Š‡’Žƒ…‡‘ˆ•—’’Ž›‹–Š‹•
situation?
a) ––ƒ””ƒ†‡•Š
b) West Bengal
c) Rajasthan
d) None of the above
95. Šƒ–‹•–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ˜‘—…Š‡”•™Š‡–Š‡•—’’Ž›™‹–Š”‡•’‡…––‘–Š‡˜‘—…Š‡”‹•‹†‡–‹ϐ‹ƒ„Ž‡ǫ
a) Date of issue of voucher
b) Date of redemption of voucher
c) Expiry date of Voucher
d) Earlier of A or B or C
96. Šƒ–‹•–Š‡–‹‡‘ˆ•—’’Ž›‘ˆ˜‘—…Š‡”•™Š‡–Š‡•—’’Ž›™‹–Š”‡•’‡…––‘–Š‡˜‘—…Š‡”‹•‘–‹†‡–‹ϐ‹ƒ„Ž‡ǫ
a) Date of issue of voucher
b) Date of redemption of voucher
c) Expiry date of Voucher
d) Earlier of A or B or C
 846 EP-TL

97. ‘’ƒ›‡…”‡–ƒ”› ‹”‹•‡‰ƒ‰‡†–‘Šƒ†Ž‡–Š‡Ž‡‰ƒŽ™‘”’‡”–ƒ‹‹‰–‘–Š‡‹…‘”’‘”ƒ–‹‘‘ˆ‘’ƒ›

ǡ–Š‡”–Šƒ‹–•”‘ˆ‡••‹‘ƒŽˆ‡‡•‘ˆ•ʹͷͲͲͲȀǦǡ ‹”ƒŽ•‘”‡…‘˜‡”‡†ˆ”‘•ͶͲͲͲˆ‘””‡‰‹•–”ƒ–‹‘
ˆ‡‡’ƒ‹†–‘–Š‡‡‰‹•–”ƒ”‘ˆ‘’ƒ‹‡•Ǥϐ‹”‹•‡”‡Ž›ƒ…–‹‰ƒ•ƒ’—”‡ƒ‰‡–‹–Š‡’ƒ›‡–‘ˆˆ‡‡•Ǥ
In this situation, what will be the value of supply of services?
a) Rs 25,000/-
b) Rs. 29,000/-
c) Rs 4000/-
†Ȍ ’‡ƒ”‡–˜ƒŽ—‡
98. ”Ǥ„Šƒ›ǡƒ–”ƒ†‡”‹ƒƒƒ†‹—Šƒ•‘’–‡†ˆ‘”…‘’‘•‹–‹‘•…Š‡‡‘ˆ–ƒšƒ–‹‘—†‡”
Ǥ‡–‡”‹‡–Š‡
”ƒ–‡‘ˆ–‘–ƒŽ
’ƒ›ƒ„Ž‡„›Š‹—†‡”…‘’‘•‹–‹‘•…Š‡‡Ǥ
a) ͲǤͷΨ
ƬͲǤͷΨ

b) ͲǤͷΨ
ƬͲǤͷΨ

c) ͳΨ
ƬͳΨ

d) ͳΨ
ƬͳΨ

99. Š‹…Š‘ˆ–Š‡ˆ‘ŽŽ‘™‹‰ƒ”‡ˆ‡ƒ–—”‡•‘ˆ
ǫ
a) Value added tax
b) Destination based tax
c) Tax on Supply
d) All of the above
100. India has adopted a-------------------------------------------
‘†‡ŽǤ
a) Single
b) Dual
c) Triple
d) None of the above
Test paper 847

Answer Key

1 b 36 d 71 d
2 b 37 d 72 d
3 c 38 a 73 d
4 a 39 d 74 b
5 a 40 b 75 d
6 d 41 d 76 d
7 d 42 d 77 b
8 c 43 a 78 b
9 a 44 b 79 d
10 d 45 b 80 b
11 b 46 c 81 a
12 a 47 a 82 a
13 d 48 a 83 b
14 b 49 b 84 c
15 a 50 d 85 d
16 a 51 a 86 a
17 c 52 b 87 b
18 d 53 c 88 c
19 a 54 a 89 b
20 a 55 ac 90 b
21 b 56 c 91 b
22 b 57 c 92 b
23 d 58 b 93 d
24 c 59 c 94 c
25 c 60 d 95 a
26 b 61 c 96 b
27 c 62 c 97 a
28 c 63 c 98 b
29 b 64 d 99 d
30 b 65 b 100 b
31 c 66 d
32 b 67 c
33 c 68 c
34 c 69 a
35 c 70 b
848 EP-TL

REFERENCES DIRECT TAX (PART I)

For Journals ǣ‘–ŠŽ› ‘—”ƒŽ‘ˆȂŠƒ”–‡”‡†‡…”‡–ƒ”›

For Publications:
Ȉ ICSI Study Material
Ȉ ‹”‡…–ƒš‡•ƒ™ƒ†”ƒ…–‹…‡Ǧ”Ǥ‹‘†Ǥ‹‰Šƒ‹ƒƬ”Ǥƒ’‹Ž‹‰Šƒ‹ƒ
Ȉ ‹”‡…–ƒš‡•‡ƒ†›‡…‘‡”™‹–ŠƒšŽƒ‹‰Ǧ”Ǥ
‹”‹•ŠŠ—ŒƒƬ”Ǥƒ˜‹
—’–ƒ
For Case Law
http://www.taxscan.in/30-important-tax-judgments-2017/15597/
https://www.bcasonline.org/ContentType/2.%20KDevdas.pdf https://www.taxmann.com/
For electronic documents: www.incometaxindia.gov.in

For further updations students are advised to refer the following :

‡ Income Tax Act, 1961 – https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
‡ Income Tax Rules, 1962 – https://www.incometaxindia.gov.in/Pages/rules/income-tax-rules-1962. aspx
‡ Circulars – https://www.incometaxindia.gov.in/Pages/communications/circulars.aspx
‡ ‘–‹ϐ‹…ƒ–‹‘•ȂŠ––’•ǣȀȀ™™™Ǥ‹…‘‡–ƒš‹†‹ƒǤ‰‘˜Ǥ‹Ȁƒ‰‡•Ȁ…‘—‹…ƒ–‹‘•Ȁ‘–‹ϔ‹…ƒ–‹‘•Ǥƒ•’š

REFERENCES INDIRECT TAX (PART II)

For Journals :
‘–ŠŽ› ‘—”ƒŽ‘ˆȂŠƒ”–‡”‡†‡…”‡–ƒ”›
‘–ŠŽ› ‘—”ƒŽ‘ˆȂŠ‡Šƒ”–‡”‡†……‘—–ƒ– ‘—”ƒŽ
For Books:
Ȉ
‘‘†• Ƭ ‡”˜‹…‡• ƒšǡ ƒ™•ǡ ‘…‡’–• ƒ† ’ƒ…–ƒŽ›•‹•ǦŽ‘‘•„—”› Ȃ ”Ǥ ƒŒ‹˜‰ƒ”™ƒŽ Ƭ ƒŒ‡‡˜
Malhotra
Ȉ
‡ƒ†›‡…‘‡”ǦƒšƒȂǤǤƒ–‡›
Ȉ ‘’Ž‡–‡
—‹†‡–‘
‘‘†•Ƭ‡”˜‹…‡•ƒš‡ƒ†›‡…‘‡”‹Ƭ ‘”ƒ–ǦŽ‘‘•„—”›Ȃ”ǤƒŒ‹˜‰ƒ”™ƒŽ
ƬƒŒ‡‡˜ƒŽŠ‘–”ƒ
Ȉ ‘’”‡Š‡•‹˜‡
—‹†‡–‘ƒšƒ™•„›”Ǥ‘‰‡†”ƒƒ‰—”

For further updations students are advised to refer the following :

Ȉ CGST Act, 2017 Ȃhttps://www.cbitc.gov.in/resources//htdocs-cbec/gst/cgst-act.pdf
Ȉ Circulars Ȃhttps://www.cbic.gov.in/htdocs-cbec/gst/cgst-circ-idx-2017
Ȉ ‘–‹ϐ‹…ƒ–‹‘•Ȃhttps://www.cbic.gov.in/htdocs-cbec/gst/central-tax-notfns-2017
Ȉ Customs Circulars Ȃhttps://www.cbic.gov.in/Customs-Circulars-Instructions
Ȉ —•–‘•‘–‹ϐ‹…ƒ–‹‘•ȂŠ––’•ǣȀȀ™™™Ǥ…„‹…Ǥ‰‘˜Ǥ‹Ȁ—•–‘•Ǧ‘–‹ϔ‹…ƒ–‹‘•