Professional Documents
Culture Documents
ne l Thabiliy
dis Nel f ar it tkes, Para 8
the
avnovsep wrtetv
The v
objert
puryse,at
t ilhe
he
ttratd asa nutut edea
carning
assesser
adimittedly
n
inonelomlensing o the
it is
torY
nun
tnt
intion,
lmed inu n atd an a co
conseicintiously
its r lnd The t peatve nn etv,
businen pn usng In larly Torl
receipts
Cxemt the itivebet
n lety
does unlWlln land pieven
nt m n
ineiplevl k
overa long mtuality Theereitn
nnl al
m l lenne,dmly lon as mdtit
of the perl, The s wold work
lcase,
the ainuiule otmntiude therolue,t
anv in nneleanly
in e mrditute
sinee
referred to above.
because there is
nalme ol hee alle in
Transder d amn reeiptn in
tanter in whiehaNet hing theal t
N l)
nt l the
Y Wav ehterrivel on
hanc
that the
1ondaton ol i
m the thes astet
nssessee-sn'iet an
oerative soniet
distributivm ol lhe
dis
subjert to the
the son iety
vl it
iigil dise
e
in
md in
involved There
litleen
npital gal, ilhiv is
it
mer liken, niou e tle
it
not a
in ie ripts
apitl puln
outstanling assets in ipline ol he iotherenmur'steititott
6-P8 7he C'oopTative Sn ieties pmoeit
nieniesof the
any
the mner At wliieasyee inat
Gorrrnmen at membern like. l lorbids linal
membeIs atadis esFr alnates nd sellmg
\vopnutivesoietNare
eahers.1hr
formedfor the t thern oa assesser
peon ho wantsgetting
is
of pronnlng the
mutaliivand, theefore,
relevantassesment
on interest of the memesthedss'ssr ivnf the view
ras, to
lrt Iwks
puhdse s l
fn the
ils
its that vineit lu
exehudedand thoNe entire the
profits eaned be'ey
carned ramingmast be
from nom uas
dissecteduud those eut frmthrm has an
members may he ned from
In the taved. Advise enmerseement
st be
instant ease, the
assessee is a
the Government and sells
whole world. them at anolit-making
organisation.It
and the
Iivery sale involvesprolit to
sonne
vriouscategories otpwehases text bookN a l
participators. The prolit. pernons.l Nells diwonunt iroon
'Therelore,there is tonembervand to
individual who
nay buy trom participators in tlhe
prolits are only identity between then» the
the assessee. nnembers but the contributors
tax.-Bilhar Rajva
Sikshak Onee contributorvie
Salhyog Sang/h L.td. v. mutuality is lost the whole every
Gross total income income becomes liable
(CTT|1987| 3 Taxman 403 to
(P'at.).
7. As per section
14, income of a
1.
Salaries person is computed nder
the live
lollowing
2. Income from heads
house
3. Profits and property
gains of businessor
4. profession
Capitalgains
5. Income from
other sources.
The aggregate income
under these heads is termed as
gross total income means total Inother words,
income [see para 8|"gross
total income".
I,
ql'at aml I) a lollowe
Il
ro
I,
the l'nnt S hedue tn the lineeArt, 20MM) gives incom1Aax 1ats fot liffefetif
assr s fou the as n"nt vear 20M0) 01
/urt ll th lust S
dule a the inae Ac, 20000,ves rales for deduu tuofs fof tat at
sOe upliv albl tun the linancial year 200)(01. I1a person is resprsible fos making
NI nt nn whih he is supposed to deduet lax at sotrCe duing 20000 ()I, then tax hat tr, h
dedurtedatsvnurerdring 0M00)01 at the ratespivenin Part Ilof the Virst Sehrdul1, Pinant
Act, 200N. lowevei, the tates lor tas deduction
Iron saliary are piven by Parl
Aurt l the instS.
hedule teo the l'anrAct, 200) gives lax rates fordifferent assrses
I1
torte pav nent ol advancetax during the linane ial year 2000001 (i.., for the asseSstnrTut 7eat
2001 0).The sauneIates are applicable lor the tax deduction Irom
salary payient during
the tinaneial vear 2000 01.
Part lll ot the Fus Seheduleof a Finanee Act becomesPartI
Cienerally, of the First Schedule
u the subsequentlinance Act. For nstance, Part l
of the Firs Schedule to the Financ
Act. 2000) will bevone Part I ol the First Schedule to the linance Act, 2001.
8.1-1Conputitionof tar luabulty Incomc-lax shall be calculated according 1o the rates sáven
inrelevant Finance Act. For the assessment year 2000-01, tax shall be ealculated at the rates
prseribed by the linanee Act1, 2000. In this book, ihese rates are given in Annex 1. Different
assessees are taxable at ditterent rates.
Spe ial tar nates Tav rates are given in the Finance Act, 2000. Besides these lax rates, ome
inconesare taxable at special rates given underthe Income-tax Act [these rates are given in
the book in Aunex I. para 0. 1-6}, For instance, long-term capital gains are taxable at the rate
of 20 per cent" |see:.î12|. winnings from otteries,races, card games,cte, are taxable at the
rate of 40percent" |sec. 115BB|, royalty income in the hands of a lorcign company is taxable
at the rate of 20 pcr cent
or 30 per cent |sec. 115A(1Xb)}
of
Marimum arginal rute of tar It is defined by section 2(290) as the rate income-tax
in relation to the highest slab of income in the case of an individual as specified by
applicable
the maximum
the relevant Finanee Act. For instance, for the assessment year 2000-01,
it is 34.5 per cent.
marginal rate of taN is 33 per
cent and for the assessment year 2001-02,
The amount of the lirst slab of income which is taxable
Evemprion limit or exempted slab-
at nilrate is known as exemption limit or exempted slab [see Annex 1]. For the assessment