Green Blue

entsRed-- "cOMPACT'
ack-Headings is
-
portant Main
Content Color- a
Point
coded
&
Words book
@intermediatenotess

for
easy
understanding
 CA | CMA INTERMEDIATE

COMPAGT
INDEX

CHAPTERS Page No.

0 BASICS &TAX RATES 01

09 RESIDENTIAL STATUS &SCOPE OF TOTAL INCOME 15

03 SALARIES 21

@intermediatenotess43
04 INCOME FROM HOUSE PROPERTY 37

O5 PROFIT & GAIN FROM BUSINESS OR PROFESSION

06 CAPITAL GAIN 75

07 INCOME FROM OTHER SOURCES 99

08 CLUBBING OF INCOME 117

09 SET OFF &CARRY FORWARD OF LOSSES 121

10 DEDUCTION FROM GTI 125

11 ADVANCE TAX, TDS &TCS 137

12 RETURN FILINGAND SELF ASSESSMENT 157

 1 Basics &Tax Rates
Hes
People!
Fntry82 of the Union List i.e., List I in the Seventh Schedule to Article 246 of the Constitution
of India has given the power to the CG to make laws on Income tax other than agricultural income.
Entry 46 of state list give power to State Govt. to make law on tax on agriculture income.

Sources of Income Tax Law

S Tncome Tax Act, 1961 It is the main source of Income tax law. It's provide determination of Total
Tncome, Tax Liability &Procedure of assessment etc, It applicable to whole of India w.e.f. 1" April,
1962.
Income Tax Rules, 1962: IT Act empowered Central Board of Direct Tax (CBDT) to make rules. AIl
Forms, procedure, depreciation rates, principles of Valuation of perquisites are provided in the Rules.
> Annual Finance Act: Every year, the FM presents a Finance Bill in the parliament, which
contains
various amendments proposed to be made in the DT &IDT. Finance Bill (No. 2), 2024 presented by
Nirmala Sitharaman on 23r July, 2024.
As soon as the Billpassed by both the houses of the parliament and thereafter receives the assent
of President, in becomes the Finance Act. Finance Bill, 2024 became Finance Act (No. 2), 2024 on

@intermediatenotess
16th Auqust, 2024 after receive assent of president.
Circulars/Notifications from CBDT: Circulars are issued by the CBDT to clarify the meaning &scope
of certain provisions contained in the Act. Notifications are issued by Central Govt./CBDT to give
effect to the provision of The Act.
can
Circulars are binding to Assessing officer but not on Assessee and Courts. However Assessee
take advarntage of Circulars which are beneficial to them.
> Supreme Court & High Court Decisions: Various issues which are arise out of the provisions are
decided by HC/SC. The SC is the Apex Court and the law laid down by the SC is the law of the land.
The decision of HC will apply in the respective state in which such HC have jurisdiction.

Sec. 4: Charging Section of Income Tax

Income Tax is charged for every Assessment Year. It is charge on every person as define u/s 2(31).
at the
It ischarge on the total income earned by the person during Previous Year. The tax is levied
rates prescribed byFinance Act.

Sec. 2(9): Assessment Year

A.Y. means the period of 12 months starting from 1 April every year. Income earned in Previous
year (PY) is taxed in AY. The A.Y, 25-26 is aperiod of 12 months from the 1 April 25 till 31st March
26.

Sec. 3: Previous Year

P.). means the financial year immediately preceding the AY. For A.Y. 25-26, the PY shall be period
from 15 April 24 to 31st March 25 &the Income earned in Py 24-25 is assessed in the AY 25-26.

Compact 1 CABhanwar Borana

 Basics &Tax Rates 1 1 Basics &Tax Rates
Hes yes
People! source of income People!
newly set up, or a Tax Ratees for
a businesS or profession Assessment Year
Provided that, in the case of
FY, the PY shall be the
period starting from the date of setting In case HUF, AOP, BOI, 2025-26 (General Tax Rates as per FA-24)
of Individual,
coming intoexistence,in the which the source of income newly comes into For Individual, HUF, AOP, BOI, AJP Artificial Juridical Person
profession or, the date on (Resident or Rates
of the business or Total Income (NTI) ) upto Non-resident)
existence and ending with 31
March of FY. 2,50,000(Basic Exemption
above 2,50,000 upto 5,00,000limit) Nil
Sec. 2(31): Person
above ?5,0,000 upto 10 00 000
5%
above 10 00,000 20%
Person includes
BB
Woman, Minor, person of Unsound mind. Eq., Mr.
30%
v Individual: Natural Person like Man, For Senior Citizen (Resident Individual age 60 years or more
linealy descended from a common ancesto
HinduUndivided Family (HUF):Consists of all males Total Income (NTI) upto 3,00,000 (Basic in PY but less than 80 years)
Ram's HUF
and includes their wives and daughters. E.q.,
India or outside India. E.g.,BB Virtuals Pvt. Ltd.
above 3,00,000 upto Exemption limit) N
[Link] body corporate incorporated in
above 500,000 upto 5,00,000 5%
Firm (Includes LLP); Eg., Gupme Foods LLP above 10,00,000 10,00,000 20%
Ventures, Unregistered Trust
Association of Person or Body of Individual (AOP/BOI): E.g. Joint 30%
Local Authority: E.g. Municipality, Gram Panchayat For Super SeniorCitizen (Resident Individual age 80 years or
Artificial juridical person: Eg, Deities, Bar Council, Universities Total Income (NTI upto 5,00,000 (Basic more in PY)
Exemption limit)
@intermediatenotess
Ni
above 5,00,000 upto 10,00,000 20%
Sec. 2(7): Assessee above 10,00,000
It means any person who is liable to pay any tax or any other sum
under IT Act, 1961, It includes 30%
in default.
person in respect of which any proceeding initiated, deemed assessee or assessee Cincular No 28/2016 dt 27.07.2016: Any Resident
Individual whose 60th/80th birthday falls on 1
Anril 2025 shall be treated as having completed the age of
Certain cases where Income assessed to Tax in Previous Year itself 60/80 years on 31 March, 2025 i.e, PY
2024-25 (AY 25-26) and hence would be eligible for the higher basic
>Sec 172 - Shipping Business of NR: Where a ship of NR, carries passengers, livestock, mail or &500,000.
exemption limit of 3,00,000
goods shipped at a port in India, the ship is allowed to leave the port only when the tax has been
paid. Surcharqe for Assessee being Individual, HUF, AOP, BOI and AJP:
Sec 174 - Person leaving India: Where it appears to the AO that any individual may leave India [Link]. Conditions
and he has no intention of returning, the income of such individual for the period upto the probable Surcharge 6
1 Total Income upto 50 lakhs No Surcharge
date of his departure from India is chargeable to tax in current year only. 2 Total Income more than 50 lakhs upto 1 crore 10% on tax
Sec 174A- AOP/ BOI/ AJP formed for aparticular event or purpose: AO apprehends that the
3 Total Income more than1 crore upto 2 crores 15% on tax
AOP/ BOI is likely to be dissolved in the same year, he can make assessment of the income up to
the date of dissolution as income of the current year. 4 Total Income more than 2 crores and it includes Dividend, 15% on tax on
Capital gain u/s 111A, 112A &112 (Special income) special income
> Sec 175 -Persons likely to transfer property to avoid tax: If it appears to the AO that a person
is likely to charge, sell, transfer, dispose of his assets to avoid payment of any liability, the total Remaining Total Income (Total Income excluding Special 15% on tax on
income of such person charge to tax in current year itself. Income) is upto 2 crores remaining income
Sec 176- Discontinued business: Where anybusiness or profession is discontinued, the income of Remaining Total Income (Total Income excluding Special 25% on tax on
the period upto the date of such discontinuance may, at the discretion of the AO, be charged to Income) more than 2 crores upto 5 crores remaining income
37% on tax on
tax in current year. Remaining Total Income (Total Income excluding Special
remaining income
Income) more than5crores.

CA Bhanwar Borana 2 Comp CA Bhanwar Borana

Compact
ana
ar CA
Surcharge:
In Total Total Total Surcharge Company
ForeignB. Domestic A
all In Rate:
30%Tax In Surcharge: OtherwiseCrore
case 400upto Total In
t>20,000
he IncomeIncomeIncome case case () () (viin) (vi) (v) (V) (i) (n) [Link].
Examples
above of of Total Total Turnover ()
Same of
>10,000 Co. @ Firm, CompanyComparny
upto
operative 127% IncomeIncome
cases a excludingIncome
Total
domestic if LLP, or 600
Peaple!
10,000 Gross 300 300 150 150 Income
Health Total Local >>1 60 45 45 45 20
but society 10
upto Income Authority Receipt special
company & crores crore
Education
20,000 more but of Income
upto 100 250 100 500 250 700 Dividend)
(7% P.Y. 300 70 50 25 Special
4 than
cess & 2022-23 (C&
12%) 10
applicable crores &
1
crore. Total
700 550 400 650 400 760 345 115 95 45
Domestic
Company Income
O4%
127% 7%
on Calculated on
tax Special
IncomeSurcharge
15% 15% 15% 15% 15% 15%
(including 15% 15% 10% NIL
Basics
Rate
Tax Rate
Tax applicable
357% 30% 25%
SC 30%
20% 10% &
mpa if Compary
Foreign [earlier Tax
any). Income
Other on
37% 25% 25% 15% 15% 15% Rates
5% 2% it 15% 15% 10% NIL TaLakhs
x in"
was
40%]
1

Balance
NTI STCG
111A LTCG112Particular Calculate (iv) (ii) (Gi)
LTCG Solution: (i Mr. |NetTax
Example: 2Payable Add: ()
BB 2LTCG Solution:
Add: Add: BalanceNTI STCG111A LTCG1 Particular
Calculate (i) () () Example:1
Sec
112A Mr. 1
Other
Dividend?
13,00,000
CapitalCapitalCapital is HealthSurcharge Jay
his a Surcharge 112A 1,00,00,000
income
OtherCapital
CapitalCapital 288A/:288B: Basics
(in x
taincome resident, his is
excess gains gains gains & (in a &
liability Edu. excess resident,
tax gains gains gains
Tax
on
onLTCG liability
-u/s u/s u/s aged Cess Balance Amount Rates
of u/s u/s u/s,aged
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3,34,00,000
for 111A 112112AR of
1,25,000) @4% & 11260,00,000
for 1IA 112A
AY 1,25,000) of
Tax STCG 32
* years.34
1,00,000
3,00,000 7 Total
2025-26. 2,00,000 AY ? years,
2,00,00,000
1,00,00,000
@15% 2025-26.
His 111A Income
(Asset(Asset(Assetincome @15% His
He (Asset income
5 He(Asset (Asset and
shifted transfer
transfer transferdetails shifted Tax
transfer details
Rate
Slab
transfer transfer rounded
RateTax out Rate
Slab
on for Total RateTax out
15% 20% 12.5% of 20% 12
5%10% for
15/05/24)
on on PY
of on
default 17/06/24)23/07/24)
2024-25 on on PY off
default 10/12/24)
2024-25
14/02/25)16/06/24) to
tax the
1,02,96,875
3,53,00,000
3,47,00,000
1,02,22,500 Income 4,60,00,000
1,00,00,000
2,00,00,000
1,00,00,000Income tax
ar
naCA 1,00,000
3,00,000 2,00,000 regime are 60,00,000 nearest10.
115BAC(1A).
regimeu/s are
as
follows: as
u/s follows
1158AC(1A). 1,02,25,800
Tax 98,32,500 85,50,000
3,93,300 40,00,000
8,60,62528,12,500
4,21,875 750,000
45,00020,000 9,375 9,87,500 Tax
People!
ana
arCA
Answer
Final
Income
TotalIncome
Other
Dividend
CapitalCapital Income of From
Capital |Nature tax #
Payable
Tax NetTax Add: Add: Add: Add:
regime
gains gains gains following on HealthSurcharge Surcharge
Surcharge
dividend People!
u/s u/s u/s u/s
information &
111A 112 112A 115BAC(1A). Edu.
= on on on
(Asset (Asset (Asset 1,02,22,500/ Cess Balance Tax LTCG
@4% on
transfertransfertransfer calculate Dividend STCG &
Tax@257%
on on on 347,00,000 111A
10/12/24)
10/12/24) net @15%
6
10/12/24) Yourself
tax Test (9839524 e15%
liability #
x
13,00,000 x
years
NR)(64 MrSK
.
1,06,30,0009,50,00,000
15,11,00,000 & 25)
34,55,09599,00,000 assume
7,00,00,0001,70,000
4,10,000 1,50,000
=3,82.976
assessee
years)(28 DevMr.
4,16,57,366
2,15,13,050 1,90,00,000 Basics
6,59,00,000
60,00,000
shifted
&
Tax
Com out
.
8,00,00,000years)(52 MrAK 133,38,372
1,28,25,358 Rates
49,00,000 2,00,000 of 24,59
881
1,00,000 default 5,13,014 57,446
11156
1

,01,00,000
10,00,000
upto >2,50,000
5,00,000
10,00,000
>5,00,000 upto Upto
upto 2,50,000 Solution
Tax default
Example-3 (2,67,50,000
Add:2,30,000) Above
+ Add: Solution
Tax crores.
Example-2
income Add:
(30,00,000
+1,00,000) AboveSurcharge @7%Add: Solution
Tax crores. order on
on on
Example-1 than Authority/Co. 1
HEC Surcharge
@12% HEC@ on entire
Crore/5Marginal
Total tax LiabilityTaxNet amount LiabilityTaxNet the Basics
Total Assessee amount Income to
Total @ Total Assessee increaseremove
Income regime 4% Total amount CroreRelief
is Income 4% Total &
is
income restricted restricted income this op. (in in Tax
not not in society)
@intermediatenotess

u/s income, of case Rates

(10,02,30,000 opfed (1,01,00,000
30%) x defect,assessee
opted tax Surcharge:
115BAC. of of of and of
Mr. to or
sec. Tree to [Link] Ind/HUF/AOP/ 10
Tax Tax as
Calculate Sam 115BAA. Ltd. 115BAA, Crorea there It
on on Ltd, resuit
(62 x (Indian (in
10 25%) 1 (Indian increse shall
crore .Calculate crore+
taxyears) Calculate case little is
be BOI/
7 liability. Compary) (NTI-1 allowed of
+ Compary)10100 Company/ AJP) bit
NR (NTI- in
tax tax tox increase
is liability. liability. relief or
10 crore) is
1,01,00,000. 1002,30,000. 1
crore) tomore [Link] Crore in
32,24,000 31,00,000
31,00,000 3242
100 3030
000 the incorme
124,000 212100 than (in
2,80,64,400|
0002,680 Relief 2,50,57,500
9 Marginal 000, extent Society),
027
30
0 28059
22,69,80,000
0
1079,200 0690030 the case
1,00,000 12,500 Assessee T/o T/o over
Nil increase
increase of
orana
warCA of of surcharge Compary 50
PY Marginal
Relief PY
shifted 7142100 Lakhs/1
1084,400 22-23 22-23 in in iso
tax Firm/local y/
income,
out is is applicable
is Crore/2
from 350 450 more
People! Ye5
In
 CA
war
rana
LiabilityNetTax HEC@
Add:4% Rebate
Less: 1,
Liability Total
87A TaxIncome 4. 3. 2. Notes:
12,500Amount
b)Tax a)
Example:Rebate
MarginalRebate This 12,500
b.) + For Sec. Answer FinalIncome
Total From Payabl
|NetTaxe Add:
Whichever
lower is Whichever
Lower is Above Add:
(30,+1,903,0,705000)
rebate a) 87A:
Resident HEC
in
Calculate case relief u/s 100% followi ng amount Surcharge
87A shall Rebate e
of
of
Individual 4% is
115BAC
tax
concept
available be tax
from information restricted @
People! Yes5
reduced payable, 157%
liability
discussed notagainst having Tax
applicable or to calculate to
of before TotaCertain
l
Ms. Tax
12,500 9,500 al on
Sneha with on typesadding Income Yoursel
net Testf
8 Individuals 1
conceptrebate of Mr. tax crore
resident health& upto
Income Devamliability +
except
of (NTI-1
115BAC education 5,00,000. 2,00,05,050
440,000 Individual
Case 1- when except 5,07,20,000 (49 &
9,500 9,500 assume crore)
Nl Ni Ni in LTCG years) S4,26,375
assessee cess.
(Age later assessee
u/s
24part Mr. 00 31,93,750
33,21,5127750 31,93,750 32,68,875 28,42,500
years). of opted 112A, Basics
Available
Not Krishivshifted
his
t115BAC,
5,07,000Case-2 &
Comp 14,456 13.900 13,900 topic. 74,09,350
2,04,40,000 (28 Tax
556 out
?75,125 Relief Rates
years) from
115D,
1

Conditions AMT cess &

rate
Tax Sec.
barae
Assessee 1
115BAC:
Iw.e.f. Basics
IFOS PGBP 1. >B/F >
Salary HP assessee Special
15,00,000
Above 3,00,000
UptoIndividual, Tax &
thereafter
Assessee Assessee HealthSurcharge this 12,00,001
15,00,000 to
10,00,001
12,00,000 to
3,00,001 Total Tax
7,00,001 to income on
AMT case Income Income Rates
&
paid 377% to HUF,
Allowance
Allowance Additional > > > > does opt hascredit Education
> wil
@intermediatenotess

C. D. T. Allowance HRA Leave forwardagainst

D. Entertainment Set-off (u/s 10,00,000
in an or e Interest not for b/f fax surcharge be 7,00,000 AOP/BOI Ind, of
Conveyance [Link] thTravel
lyTravelling cannot as @111A,
u/s travel deductions/exemptions: following
claim sec AMT cess HUF,
toperformance
for Dep. employee place other per 107%/157%/25% Alternate
Taxation
Regime
allowance: allowance u/10(13A) and of u/s 115BAC. 112,
s credit, be sec. shall not (other AOP,
MP/MLA income u/s or of concession it HP 112A
allowance: due residence
tour 10(14) allowance wil head loss 24(b) set115BAC applicable be
u/s
32(1)(ia),
of of to to to get it of f etc.)
than BOI,
minor duties absence meet allowance: (except: a (HP (Let for should 4% Co.
10(17) Divyang against is depending shall op. AJP
and loss
u/s andlapse)Self-occupied not always. even
u/s of
meet
to the
10(5) out/Deemedbe to [Amended
society),
35(1)(),Gia),(i1),35(2AA), place DTDC) Professional shall first required Total be
10(32) from
an ordinary to
employee income taxable
exhaust
on
office. the his meet of not Income>5 Total
expenditurenormal daily the duty. property
be u/s to AJP
war
ranaCA for tax allowed pay Income
115BAC.
the Special 25-26]AY
charges costcommuting u/s propertyY) AMT.
place of let-out AMT
on 16(ii)& crores. 30% 20% 15% 10% 5% rate
Tax
to ofrates. Ni
of travel be
Therefore,
[Link] incurred
duty. Credit assessee.
onbetween (ii) carried
tour
by and
if Ln People! Yes
war
ana CA Notes 115BAC u/s ax
regimetdefault perAS Ws
87ARebate
25,000b)? a)Less TaxIncome Calculate
liability,
Total tax Example
700,000
[1158AC(6)]115BAC from Option opfout to
100%
Rebate peras
of orMr. additional of
additional 7,22220, Whichever
Lower is ye5
tax 115BAC
Ifexceeds
regime. Marginal b)? a) For regular
u/s block assessee Section 4. 3. Paple!
2.
727,O00 BB 100% > referred
law deduction HP under
payable, 87A (age 25,000 Resident under > [Link] Deduction
as PGBP.
eligible subsequent canalongwith Assessee
alongwith fo
deductionr loss
depreciation
on
depreciation 700,000., tax Relief: of Assessee 115BAC ta x
34 having tax be regime the cannot
or or01/04/2023. on Individual withdraw
years) such If payable, for tim e cannot Except:
730,000 the AY e
thhaving the does is
allowance or be
PGBP However Total by
defaultexemptionbeing
is not income [Link] returnexercising set set-off
a is Income having
or benefit only PGBP: not deduction
Resident allowed & in off
10 or includedopting u/s have txforce.
once any
However u/s
marginalcannot Total against
700,000 7,50,000, of PGBP: for
20,000 20,000 to more regular for 139(1). Option 139(1) regime.
the b/f Chapter
Nil Individual, 115BAC exceed u/s
be in Income the other loss
set-off B/F Relief than PY forOptionoption. 80JJAA,
Assessee tax option of However or VI-A
for the ? upto there
& Such every head
unabsorbed not7,00,000 regime regular of or unabsorbed
7,30,000
720,000 His but firstavailable amount onceopfion regular &
22,000 22,000 PY. assesseeperquisite and 80CCD(2), 10AA
total it 7,00,000. affer
Nil not wil time tilexercise once fax it
optedincome bybut th e tax cannot |
be
depreciation in which does in the regime
23,000 added case exercised provided depreciation80CCH(2), Basics
23,000 AY e
timperson for regime can
regular for not be
24-25 of the avail
Nil having regular must C/F.
AY opening to regular exceed?
Total shall shall must Tax &
tax 25-26 the under attributable to d
ompi 7,50,000 then and any be Rates1
25,000 25,000 regime. Income never tax apply be any
WbV if tax income exercisoexercise benefit
Nil is such regime other
any
be fon

>Basic > MOnline Tax Sec. Gec. Rate: 30%Tax

in taxable. a 115BB:Sec.
Deduction Deduction Notes computer resource Note: Tax 1
case Rate: 115BBE:
Rate: Marginal
Relief
for 115BBJ: LiabilityTaxNet Add: Restricted
Tax to
Basics
Exemption Game" No
of all 307% set.607% Health on
resident u/c u/s above Income Tax lakhs 7 &
means on (surcharge off Deemed Tax
VI-A 28 winning of on &
Edu, Rates
@intermediatenotess

Benefit sections:
to including a from any winnings (NTI-7
Individual not game Income
44C Joss Cess
available.
NoT
fromOnline
@
or That shall 25% u/s from @
& sec
ary online 4%lakhs)
Available
HUF) telecommunication is Games be and 68 lotteries, Some
57 offered games. allowable to
not HEC 69D other
1
against allowed on @ ,crossword
against 473) Special
the Nil Nil
above effective NiNil
against [Link] Tax
deemed puzzles,races,
income Rates
above and rate
irncome. 787% 200020800 20,00020,000
(Except is 800
income, accessible
card
aCA 12
means games 23920 23,00030,000
(LTCG), by 920
gross a etc
112A user
income through 26,000 2500050,000
1A& 1000 Peaple! yes,
rCA
ofandjewellery
investments
the
Where satisfactory
Sec income about valuable Sec
Where satisfactory
he assessee
of Where Sec such company is share the
the
Further,
satisfactory,
69B: recorded whateverHowever,where AO, aboutWhere Sec
offers
AO, 69A: 69:
in of the assessee sum nature the 68:
such orAmount
any article in in application
the Unexplainedany Unexplained
offers the shall naturethe any Cash
or
noother PY, nature or any sum People!
in assessee in PY, and name sum
excess
explanation in PY,explanation in
acquiring the of the and ofthe no
be
the explanation if, so Credit
and the the deemed source the credited is
valuable that PY
explanation
investments
assessee opinion the opinion books money, called, stuhme andfound
may source assessee Money, Investments
assessee person
of same or
that not of to source
befor such
article of of share
explanation
offered any may credited
deemed is e satisfactory. such be in so Deemed
articles
the has PY. the of Assets is thabout
has whose
explanation betheor
not
etc., acquisition notfound
AO, capital, credited
difference and made AO,recorded made company
satisfactory, by treated in
12 incomeeXceeds not etc. the name the Income
the to the a not explanation
the
investments fully investments
nature share closely
be value satisfactory. such consists as books
AO money of also offered [Sec
of or disclosed inthe income
the the the finds such the ofand not premium of
owner if, held credit 68
amount and BOA the the offerednotisthe
assessee
explanation or explains the by of of to
money, which company
that is the of investments resident is the loan theassessee
in and source or recorded 69D]
recorded found th e value any
fhe bullion the are any assessee assessee or
of about
books money, of not such in borrowing
that isamount to of
assessee person, and
unsatisfactory investments respeCT also satisfactory
in be bullion etc. recorded
are the assessee
offers
PY. of bullion, amount, of
the the offers shallnot Basics
spent account or taxed nafure in that
BOA owner etc. theoffers whose of or
jewellery as or in inany no any Py. in &
by on may the and
of explanation no deemed
explanation name the explanation
sum the Tax
m the
inmaking besuch
the any be
explanation BOA Rates
assessee
the a/c's deemed explanation
opinion no
opinion bullion, deemed or such credite amount,
and soUrce
such other income of
not not the cre tto of
e
be by the

Agriculture
Income Less: Agriculture
FMV Income
Total Sale Note ean
repaid, asthe Tac is
(d) Rent() (b) (a) AsSoc an income. treat 1
kos
amount account deemed sOurceWhere Sec
Cost of in Income Income Rent per
Tncome income 69D:
1: 10(1) mot 69C:
Agri. Raw Rule such of in Basics
from section where ny
AmounT
of from be fhe amount
Form payee
of such any
toExpenditure
Unexplained &
Produce
Agri. 7- from fromAgriculture mentionedrepaid again unexplained be
case the
@intermediatenotess

Sale house
agriculture any expenditure Py Tax
the
Produce nursery. sale 2(1A), shalliable chequeborrowed is an
Rates
amount maperson y income assessee
of located borrowed
further of
Agriculture Lncome include be, expenditure
agriculture agriculture u/s fo drawn
land borrowing or
68borrowed be of orhas
Process Rural in repaid fhe
(used - inferest
assesSsed
fo on on the
1t a incurred
Agriculture
Income 69D a assesseeexplanation
produce income iS bank,nundi as
Area on or on
produce. for exempt Agriculture the
Income faxable paid repaying hundi
XX XX XX
in a the or income
3 agriculture
(useas means respect hundi any
on any shall
(Note from amount expendifure
@60% the amount is
has for
dwelling unsatisfactory
not for
1) Tax amount ofbeen the such
purpose). (+25% so be
if such Py due
PGBP Less:Less: Sale deemed borrowed allowed PY.
house,
store its borrowed in and
amount thereon
of from Surcharge whích Such he
Further FMV in
Final to or as
agriculture unexplained offers the
of onrepayment be therepaid
ís deduction
Agri.
processProducts Sale +4% opinion
narCA house). the amount repaíd no
1
Produced after HEC income shall explanation e
land other under of
cost ie,78%) was be expenditure the
optional of
in of deemed than any
India. such anyborrowed AO,cAO
an
used about
People!Yes
Process amount. person. through head of
PGBP to which
XX XX XX XX
the
or be
 (ii) (i)
Net Tax Non-Agriculture
Aggregation Tax Total
Agriculture
Income Agriculture
Non-agriculture
Computation conditions
satisfied
Agriculture
Assessee Remember:-
are Partial 7A Activity
7B Rules
8Special

payable
Tax Payable
Integration Growing Growing Rules Ye5
payable is People!
on of on income
of Individual, income Higher (b) (a) wing
"E" "B" "C" Grown for
"D-F" Income Tax income Grown,
& &and
and Manufacturing Tea,
Liability more in
is Manufacturing
exempt case &
represents Cured,Manufacturing Coffee
Basic HUE, cured
(Total more than
of
Exemption than AOP, Agricultural
from Roasted &
Income) 5000. Rubber
Basic BOI, income of of
tax Rutbber Coffee of
but & Tea
exemption. AJP. from Grounded
Income
for
[G] (F] [E] (D] [C] (B] [AJ
computation Agriculture

of
tax
XX XX XX XX XX XX XX
it
shall Basics
Income
Agri.
@intermediatenotess

be 65% 60% 75% 60%

&
considered Tax
Rates

if 35% 40% 25% 40% PGBP

followin
1
 Residential Status & es
2 Scope of Total Income People!
Status
Sec. 6: Residential
Total income of an assessee cannot be determined without knowing his residential status. Scope of
Totalincome is based on Residential status. If any person become Resident then his whole world
income is taxable in India but if person become Non-Resident, then only Indian Income is taxable

for that
person. Residential status shall be determined for every person for each previous year
independently.

Residential Status of Individual

BasicConditions as per Section 6(1) No. of days Satisfied or
stay in India Not satisfied
Stay in India for 182 days or more in P.Y. (Current
PY)
OR

2. Stay in India for 60 days or more in P.Y. and 365

days or more in Last 4 P.Y.'s
Additional Conditions Section 6(6)

@intermediatenotess
1 Resident for 2 P.Y. or more in Last 10 P.Y.'s
AND
2. Stay in India for 730days or more in Last 7 P.Y.'s

If any individual satisfies any One Basic condition (at least one) then he is treated as Resident in
India otherwise Non-Resident in India. If any individual become Resident in India, then we have to
check that such personin Resident and ordinarily resident (ROR) in India or Resident but Not
ordinarily (R but NOR) Resident in India. If the such assesse satisfy both the additional conditions
then he is treated as Rand OR otherwise Rbut NOR.

Notes:
1 The day on which he enters India, as wellas the day on which he leaves India, shall be taken into
account as the stay of Individual in India.,
2 In the following cases only Basic condition no. 1is applicable for Determination of residential status
(2nd Basic condition should be Ignored).
a. Indian Citizen, Leave India during the P.Y. for an employment outside India.
D, Indian Citizen beinga crew member of Indian Ship, leave India during the P.Y.
c. Indian Citizen or Person of Indian origin engaged outside India in any employment or aBusiness or
Profession, and Visiting India during P. Y.& his total income (excluding income from foreign source) is
upto 15 Lakhs in [Link]

Note: Person of Indian Origin means, he or either of his parents or either of his grandparents were
born in undivided India.
Compact 15 CA Bhanwar Borana
ar CA
Wholly.
Resident Sec. >
similar any lakhs In 6(1A):
Sec. of
outside In
or 6(2): case destination
countryLiable
V & other joiningthe case IndiaNR
in
days Less
than120
Partly Residential liability However,nature during Summary except ordinary
Note: stay i1n20come) In
country of India; case
of indays
in under tax to theIndianDeemed Indian incomeIncome
India tax this he & ship &outside How - resident. India are of of
law. PY
orcitizen, "From - moreIndian
is
Status
If
the means
It
provision
territory
always
shall Resident
ending the Indiacitizen, foreign (i) last then If 120
many derived or
from considfered,
Peaple Hes
law also be (In 365 thancitizen
Control St4ay ) he
R
of
of that treated deemedhaving days days fromforeign this
Hindu includes
that wil ondate or income) His PY, satisfied
inbut days 15
there by he
tentered vice crew Total and India NOR or an
and not total Indian a case orstay iflakhs or
Undivided country.
reason
as to date versa) more businesssources no person
16
member more
Management a isapply be Income otherwise for both more inthen
R income but need Indi
person an but resident
of entered into 365 the
Citizen (FSI) ina 2d of
leaving of than? upto controlled tolast Indian
income-tax case in his
NOR, (other the days
Family who a (other conditions
NR or check 120 basic
domicile continuous
into 15 181 a
means 4
of has individual in India,foreign Lakhs. or PY's days origin
its(HUF) India than CDC more daysPerson in
subsequently liability followings than additional condition
income
or then or having
affairs orforeign in bound
in discharge in of a more
residentresidence that respect he
more (i) more (0then Income he
IfTotal 182Indianprofession which but total
is on ship Stay conditions) applicable
PY,source days inResident days wil less
been such in R&OR
satisfied
in if certificate of(originated last inlast origin accrues be income Scope
Outside
Wholly
India PY or income), he signing shall or set than and Residential Status &
exemptedperson as any is India
7 otherwise 10 in treated
on-Resident Py's more visits up foreign
(other
than Incomne
Totalof
per other not be , both in or 182
instead
of for PY'sIndia
under section liable
exceeding (CDC) irrespective in India. arises as days
the freated from
from criteria 730 and for Rthe India resident
foreign to ship." but outside inPy of
is India days conditions Current 60
such 6(1). tax respect as 2 durin
PY NOR days
stay and of but
of in 15 Ion on India sOurce
in
not Py& 2

Taxability
[Link]. deemed Sec.
Income
Income received
India inIncome
Indian
2 1 conduct RoCMResident
Always Company
Indian Sec.
5: Wholly Sec. as 2
ontrolled Income
ForeignIndian Scope means 6(3): Resident
NotRe:
oreign
ncome
Other Income to
of accruing Received of 6(2): and IfScope
Income Residential
Status &
Income be OR the a Residential :Residential
or OR
of Karta
accrue "place Partly otherwise of
Total business
/
from or or ofTotal
setup for arising in HUF
or deemed Income where
Company
Status India
@intermediatenotess

Business
from Individual
Income arise of Status Income
satistying
Ris
or anKey but
to entity ofs If
India in Control of NOR,
India be Income
Total mandgement FIRMW/AOP/BOI/
or &
HUF as both
Profession and
a
whole the
Management
additional
are
Commercial
in India Ifits Lo
Taxable Taxable Taxable R&
OR substance cal
"place
in Authority/of Conditions
decisions that its
affairs
Income year of Other
made" effective
AJP as
TaxableNot R that then per
Taxable Taxable NORbut Compary is
other sec
are
resident
management" Outside
Wholly
India 6(6)
Income
Foreign
than necessary (Foreign the )
Indian
Non-Resident
Taxable Not
Not Taxable otherwise
Taxable HUF
NR for [POEMJ Company)
Income is
the treated
People!Hes
NR
in
CA D. (ii) ()
transfer
Income deemed C. B. A 9(1)0:Sec > O 4. 3. 2. 1.
Income are companyIn Shooting Collection
a Purchase Following asset IncomeSec.9:Contribution excess y
AnIncome
firm Amount Contribution Sec. Income tax subsequently
Income Notes: Taxability
[Link].
confined case at
yHes1
which or 7: income 2.
through
in tofrom of of Income accrual the
India be whi of of ofshall sOurce transferred may Indian
Income Income
received Foreign
a ch Through 9.5% e of
accrued
property, foreign
to cinematograph does news goods by in
timalready be if
Peaple!
transfer
or display does not of deemed to employer [Link] a deemed in of in it Income
outside not and in be income India
remittance Cash is
or co, not Indiatreated or from (Annual taxed remitted means,
Asset of
engaged have views from or for
of arise have of to means, Income
IndiaCapital uncut for in accrue URPF under
accretion 127% be on receivedin Other
in or any any filns in India any received irrespectiveaccrual Kind. into
or India. and
shareholder in partner Indiaexport. as
to a of income
source in Business Business
or or Assessee
consideration asset unassorted the India for arise RPFpension salary India, for
transfer to basis,
18 business who (being the in
qenerated
situated of transmission if India it the
Income is such Connection Connection India in scheme credit to consequently of
who of the Recognised the
cannot first
diamonds of citizen a NR a in
received in mining isa capital referred
employer' s of residential betime.
India is India Resident
citizenIndividual, is out in in RPF). treated TaxableTaxable
situated of India India
whether
in
in of India of asset provident or remitted After
any
diamonds, of India. u/s
India orcontribution sOurcestatus.
as
inspecial India or situated any 80CCD Scope
registration
or India,
who receiving TaxableNot
Receipt
who property fund of fo Taxable Residential
Status &
outside (NPS). Income India, NR
zone from who or is not is
in or of
then resident and of Total
notified the is a India interest income
is Income.
India. of
it activities resident citizen India
in interest situated not
documents is Income
treated by in chargeahla outside
India of or credited
the in India any thereon). in
which India. Tnd: Indio,
of as CG. or 2
a or in

CNR Government, b. ora. > caGovernment, bl or

TOr outside
Indiacarried
property Resident Sec company, Co outside
India],
NRor
purpose in profession Resident 9(1)(v):Sec If shall >Section Gift Compary
9(1)(Sievc ): Sec
respect 9(1)(vi): Tf when of
servic>Se ec 2
then on a then be
or
person interest NR R
but NR any 91)(i):
such of information by money carriedperson deemed 9(1)(vii)
or As
If 'L obo' such NOR money rendered )(Resi"): ScopedentStiatlus
per
business of such interest foreign or Dividend Salary Salary Totalof
Royalty transfer [Exception royalty payable borrowed
interest to : section |
person [Exception: on be on like
@intermediatenotess

borrows or
madeDeemed received Incoeme
by Company paid Gratuity, Income
or or payable him is accrued after by 1o()
is
profession ofoutside for bY isused payable
treated treated residentaccrual by for
any outsidewhere
ariseor
in 1" on Indianperquisite by
theWhere : by: Lobo money for Indian Pension, service
India
right, utilization - 2 by: April of
as
carried TOtrom as
the Indiamoney after to- giff
deemed it - 2023 Profit
Citizen rendered
use or is Hobo deemedpurpose
payable a or India. 5h made &
for NR borrowed allowances
in of of for July from in
toIndia any the
services wil to of the fo Outside lieu
not Hobo' 2019 a in
beproperty purposes for be
business person Govt. of
accrued or accrued purposes and India are India,
earning for the be and or Salary.
transfer used, Exempt, for whether
or th e
deemedinvests or outside
or of professionor of service
any
ariseinformation purposes
earning arise earning for
to the
Income of the India rendered such
in any
accrue same in
India. any of ary
purposes
[Link] Income
from or income or income
utilization business aright ariseshares in outside
any or in of before
sOurce from the in India from
or India. of a India.
use business
any
of profession an by ary People! or
in
service source of Indian him, source after
India any or
 Peaple! Residential
Scope of Total
Status &
Income2
Notes:
1. Lumpsum Royalty by resident to NR for suply of computer software along with
hardware under the scheme of CG shall not be treated as deemed to be accrued or
Compute
ariseein Lrdi
2. If transfer of property is already taxable "Capital gain" then it is not covered under "Rovl
3. "Royalty" means consideration (including any lump sum consideration) for -
() Transfer of all or any rights (including the granting of a licence) in respect of abat.
invention, model, design, secret formula or process or trade mark or similar property
(ii) Imparting of any information concerning the working of, or fhe use of, a patent, inventine
model, design, secret formula or process or trade mark or similar property:
(ii)Use of any patent, invention, model,design, secret formula or process or trade mark or simin.
property:
(iv) Imparting of any information concerning technical, industrial, commercial or scientifr
knowledge, experience or skill;
() Use or right to use any industrial,commercial or scientific equipment:
(vi) Transfer of all or any rights (including the granting of a licence) in respect of any copyright,

@intermediatenotess
literary, artistic or scientific work including films or video tapes for use in connection with
television or tapes for use in connection with radio broadcasting:
(vi) Rendering of any services in connection with the activities referred in above clauses.

4. Consideration for use or right to use of computer software is covered under

Royalty.
> Sec 9(1)(vii): If fees for technical service (FTS) payable by: -
a. Government, or
b. Resident person [Exception : Where the fees is payable in respect of technical services utilised
ina business or profession carried on by such person outside India or for the purpose of earning
any income from any source outside India.]
c NR in respect of Technical service utilised in business or profession carried on by such person in
India or such service utilise for earning any income from any source in Indian,
then such FTS is treated as deemed to be accrued or arise in India.

FTSmeans: any consideration (including any lumpsum consideration) for the rendering of any
managerial, technical or consultancy services (including providing the services of technical or
other personnel), However, it does not include consideration for any construction, assembly.
mining or like project undertaken by the recipient or consideration which would be income of the
recipient chargeable under the head 'Salaries'.

CA Bhanwar Borana 20 Comp

 Salaries
Yes
3 Peoplel
Sec. 15: Charging Section
Income istaxable under the head salary if there is Employee -Employerrelationship (master -
servant relation).
Salary is taxable even in case of part time job like enployee work with 2 employers simultaneously.
Salary is taxable on the basis of due or received whichever is earlier.
Salary received by partner from partnership firn shall be taxable under the head PGBP.
Salary received by MP, MLA, MLC shall be taxable under the head IFOS.
Contract 'of" service - Taxable under Salary.
Contract "for" service - Taxable under PGBP.
Salary forgone is always taxable since it is merely application of income. Salary surrendered to
central Govt., shall not to be treated as salary.
Aryamount receivedbefore joining employment or after cessation of employment with that person
@intermediatenotess

is treatedas "Profit in lieu' of salary &it is taxable under salary.

>In this topic we have to find out salary income of employee as per default tax regime u/s 1158AC &
as per Normal Provision of Income tax. So let's begin this Topic and we will complete this topic with
the help of 17 working notes
Name of Assessee: PY 24-25 AY 25-26
Computation of Taxable Salary
Particulars Note Amount ()
Basic Salary Note-1 XXX
Dearness Allowance (D.A.) Note-2 XXX
Commission Note-3 XXX
Bonus Note-4 XXX
Advance Salary / Arrears salary Note-5 XXX
Gratuity Note-6 XXX
Pension Note-7 XXX
Leave salary Note-8 XXX
Allowances Note-9 XXX
Provident Fund Note-10 XXX
Super Annuation fund Note-11 XXX
Voluntary Retirement Compensation Note-12 XXX
Retrenchment Compensation Note-13 XXX
Perquisite Note-14 XXX
Gross Salary XXX
Less: Deduction u/s 16
1. Professional Tax [Sec 16(ii)] Note-15 XXX
2, Entertainment Allowance [Sec 16()] Note-16 XXX
3. Standard deduction [Sec 16(ai)] Note-17 XXX
Net Taxable Salary XXX
Compact 21 CA Bhanwar Borana
ar CA >Note >
FullyEmployee.
Exempt Govt. Gratuity
employee. Gratuity
Note 6 ItBonus
Note:4 Commission
CommissionNote:3 terms'. of DADA Note:2 NotSalBasie:a1ryc
It
Gratuity
non-government
employees).as taxable
Arrears Advance or is
employment terms fullyis
in means

received
Gratuity

received voluntary
is
a Salary:
the
only
Advance
inadvanceSalary:
5 fully
taxable.
is
If
nothing
Dearness fixed
taxable
means
People! yes,
fully
V(ii) ) (EE year & for reqular
(ii)
|completion Exempt isArrears
Advance
Itgiven taxable is whether Allowance
DA
Actual 15/26 covered
at during payment in retirement
given
Maximum
Amount: the whichmeans
it
is which payment
amount
of xEmployee then Salary whether about
is ([Link].)
salary underPOGA
20service
time the salary salary is
received
lakhs LowerPayment
employment- made it DA forming in
benefits), (base
p.m.* of should
[rounding
x
of of retirement- by
received
under taxable is
disputeor it
is
then terms'
salary)
22 No, Gratuity an be Turnover assume part
off of employer disputeignored In or
fully on al ofnot of
allowed] years Act,
receipt retirement
it the Employee.
1972
It commission in
of taxable
is or
because is terms'.
completion Exempt appreciation
in
increase basis,
resolved formulas,
'not
Maximum
Vii)20(ii) Exempt
1/2 ) in It
Actual
u/s
for it or terms." benefit is
amount
x
Amount:
Avg. all whichever ofadvance If
earlier. istreated is
any DA fully
of 10(10) employees salary is
servicesalary of ofher calculation
received
lakhs Lower
Non Employee
Other as
services considered taxable.
as
against
retrospectively. loan.
[rounding p.m." follows (Government commission.
of
POGA -
wellas
No,
x rendered (provided salaries 3
NoT salary onlyif

@intermediatenotess
ofEmployee
allowed] years
by is it in
of the It given is'in terms
is

>Note
|> >NotPensieon 7
r r l2.
Exempt
FullyEmployee
Govt, Received
Received *Total Exempt
FulEmployee.
ly Govt. Commuted [Link]: ea. hs, In
mont SalaryLatPM. est()Late*Salst ary PM. Salaries3
8 Uncommuted f different20,00,000.
If is If 303030 case
Leave gratuity gratuity years9 years years it of Basic
Pension
at
during 6 shoul
4
d POGA D.A
the Salary:
=
pension
pension
employer, was
receit
v
fhro
ed
an
m
ismonths=monthsmonths
be
employee (both)salary
time the Full received in rounded
=
p.m POGA
It the =
(lumpsum 31 30 30
employment
of means value (monthly years years years fraction if
Exempt 20,00,000 an off
retirement- more
of earlier XX
encashment pension. Gratuity
received
also pension)
Amt. ís
pension) limit
fully -
previous one more
=
It Total wil employer than
taxable
is of Itt- - beyear
Exempt Pension Taxablei
is reduced 6
un-utilised and in [Link]. () ()Avg.*Avg.
eg Salary
In
exempt the Avg, Avg, Basic
for another 30 30case
u/s x for
by same years years of T/ODA(T) Salary
al 1/3 the
10(10AA) u/s Non-POGA salary
employees. leave. All gratuity previous
amount 11 3
months comm P.M.(Don't
of
10(10A)
employees months
last of
of last
Exempt of is year, =30 employez last 10 POGANon
Maximum(iv) (i) (0) ()
25,00,000 as received
exemptian 30 months include 10
lower is Actual 10
whichever Leave follows as the
years years 10manths
months received
Gratuity
Amt. also
follows maximum
months
Exempt
Amount in fraction month
amount
credit Employee
Other aiready the
= Employee
Other current
x Total exempticn should of
Avg. x claimed ratirement)
received Avg.
salary Pensian year be
salary igrared.
p.m.
p.m. 1/2
x
frama ailcwed
People!
na
arCA
Notes 12 11 10
13. 8 7 6 5 4 3
2. [Link]. Note 9
Allowances Leave Avg. Avg. Avg. Avg.
3. 2. 1.
Entertainmentexcept If All
assessee other
House
ResearchHelper
allowance
Rent allowance
DaiUniform
ly alowance
allowance
Conveyance
undertaking
Traveling Allowance
Allowance Tribal
area(Mines)
Underground
Allowance Education
Allowance
Children(Office
Allowance
Children
Hostel Commutation/
Transport
allowance
Credit Turnover DA
[Max. (months)
Commission
(in
terms)salary P.M. People! ye5
BasicSalary

/ to 30 of of
(Avg
DTDC or
allownaces Academy
Allowance Tour
to Home days = last last of
employees Leave 10
10hs last
Allowance
(1,7,8,10 opted
allowance (for allowance & for of mont
allowanceoffice Home
every allowed lamont
st hs 10
115BAC are (HRA) months
allownace of to [Link]. 10
is fully Purpose) Transport Office) completed - months
24
also default
taxable. Leave upto
taxable
exemptions date
tax year] taken
of
but regime
Govt. above
Kolkata), *50% iin) i ) Exempt Exempt 70% [Link] . [Link]. handicapped)
p.m.
Max Max Max
Retirement)
X> XX XX
then Rent40%/50%*
Actual
if of 300 100
EE ) 40% metro paiAmount
d u/s amount such 3200
can above 10(13A) p.m. p.m. p.m
claim
exemptions
for cities 10% - of =
allowance
per per Exempt
(in 10(14)u/s
other received salary Amount
(Mumbai/Delhi/Chennai/
deduction of
Lower
- child child case
[BS+DA(T)
cities. O] salary
Comm.T/[BS+DA(T)+T/O spent upto (Maxbflianed/d
(Max2 of
are of a
u/s max. 2
not child.)child.) Salaries 3

@intermediatenotess
omp 16.
availble of
Comm.] &
10,000 dumb
or

2 1.|
Lgnore Unrecognised
EE's A. accrualaccruedon
exceeding
any interest
Interest
EE'son (i) (i) () be
Contribution
Employee
Emplovee withdrawn mnlovee contribution Lumpsum Notes: B. allowed)
8u0/sC
(dIeduct A.
gnoreion Recogni
Contribution
EE's
During sed
B.
At
the
) EE's DuringA. Note Salaries3
aloweContribution
dIanore
the
During contribution,
accrued of
employer, Employee

amount
the
At
time of (deduction
Statutory 10
theProvident
income to
contribution the retirement
2,50,000 time Provident
EmploymentProvident
Employment
Provident
Fund orretired
has retired even and rendered
is then, Contribution during to
retired fhough interest treceived from of Empl
u/s oyment
after
a in
NPS due due
service
retirement
Fund 80c Fund Fund
higher any the A/C to to [Basic
Exempt
Contribution ER's
that funds
such
upto with shall (SPF)-PF
PYPY shut service
il + (RPF)
Exempt
Contribution
ER's (URPF) date. limit intowards to
referred the health. less RPF lumpsum DT(T)+ lumpsum Contribution
Exempt ER's
that the down be
instruction is upt o -
PF- of
fund,extent less Than
withdrawn. is T/o PF for
SPF/RPF u/s of exempt amount Comm) 127 which amount
which is 5,00,000 employer's than T Govt.,
31/03/21
wouldbe on 80CCD. years of is
or it that However
years:
5 ifreceivedsalaryExempt recognised received or
relates
after employee semi-Govt,
recognised would Exemption : his
Then
business.
Exempt Int. 01/04/21.
be to balance exemption in Int. by Exempt Int.
the by byEmployee
on applicable. the has Employee on on
employees
Commissioner
EE by without contribution u/s
exempt in following rendered upto Commissioner
EE EE
Cont. If 10(11)or RPF Cont. Cont.
in alowed 9. 576 -
Itthat should Fuly - Fuly
CA
a may fund 3 service p.a
cases in ofExempt
Exempt Int IT
of any noted be made 10(12)not be respect Exempt Exempt Int IT Exempt Int
transferred exemption
on limit, employer by of on on
ER that years 5 u/s upto ER u/s ER
that available
for of
Cont. even
interest
if made
employee
not
to
employer's
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 Income from Yes
4 House Property People!
Sec. 22: Charging Section
Rental Income (Annual value) is taxable under the head income from house property if following two
conditions are satisfied:
1. There should be House property **
2. Assessee should be owner of that house property.
** House property means building or land appurtenant thereto.

Types of House Property

LOP (let-ut property) SOP (self-occupied property)

Always Taxable
SOP(for Residence) SOP (for Business &Profession)

@intermediatenotess
Ignore
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Exempt
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Computation of Income from House Property SOP (Res.) LOP DLOP

4 Municipal value XX XX

Fair Rent XX XX

| Whichever is higher XX XX

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Actual Rent XX

Gross Annual Value (GAV) XX XX

Less: Municipal taxes paid (Xx) (xx)

Net Annual value (NAV) XX XX

Less: Deduction u/s 24

(a) Standard deduction 30% of NAV (xx) (x)
(b) Interest on Loan -/(xx) (xx) (xx)
Income from House Property -/(xx) XX XX

Compact 37 CA Bhanwar Borana

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is SOP. ARpart
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In +
this is VR of
between
for self the
case,
LOP. occupied year
Municipal
SOP due
& then to
vacancyProperty
House
LOP
value, let Income
on
area out
fair
portion from

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Com basis. rent,

standartreate is

erty If6. case In5. 4. 3. >Sec.

1. >
[Link] TWo
Concept
Asses e LOPtreatperdoperCotyncepPat rtlof
treated owner. Exception: If separable bond Nto Concept InterestLoanon is If Property
Holder In
case without
TOr inadequate
any
T
any b) Ownersincome Joint y House 4
27: income PGBP/IFOs.
Agreement Composite of
Income
Immovable
deemed
as of of of individual
an a
individualDeemed
or let
TEAgreement
of LOP/DLOP SOP ownership
their
in house
from
Join
of
t
such Owns as iss
red impartible co-operative consideration consideration
Transfer not. from out composite
rent Limit
-
house Lop wise)let | y
transfers transfers owner of Not ownership
(co-ownership) more
owner.
Eg.
BusineSsproperty
Hotel. separable:
separable: =
Rent Rent of No
-
property
ownership properties than only. out Let (
for out
nder propertyestate. in If
connection then 30,000/ Limit ratio. Two properTY some property
society, orany of
long any / not Rent House is (at perioo
inadeguate house such Profession calculated means SOP
house Total the
erm possession takenif feasible of 2,00,000 1S (Time
shareholder is of
individual property property option 127 oT
property live property Rent HP Tne
ease without taxable normally
ouT
consideration apart. or faxable of for d
( + apply is Assessee) self-occupied
to treated to is income Rent even
12 other under under of each OWned
quirer
ears) is treated as minor a thereafter & 1
his from owner day,
in other by treated
part then child as / asset
PGBP/TFOs IFHP
more then, for
Deemed her other assets c remcinúra
performance
contractof deemed such (other spouse then & itthan as also
other should SOP
individual owner for sources total & one that
deemed
owner. amenities
owner than asset owner, remaining
& time
without
of rent be property
suchof minor whether divided then
is such is Rent in
treatedmarried property. taxable
consideration toxable this be issuch
then
property. agreement between
case, treates treoteD
propezty Peaple! Yes
as
daughter) under
assessee deemed under
is the
co
or
 Hes
People! IncomeProperty
House from h4
Some Important notes for HP Topic:
1. Where house property is held as stock in trade and not
property shall be treated as NIL for the period of 2 let-out during the P.Y. the NAV of sues
which construction was competed. years from the end of Financial Year in

2. If Assessee pay tax under default taxation regime u/s

in respect of SOP (30,000 115BAC then Interest on loan u/s 24(b1)
/2,00,000) not allowed to assessee.
3
SOP means property which is
tobusiness, occupied by assessee self occupation or could not
for
profession or employment at any occupied due
4. @intermediatenotess
SOP exemption is allowed only in
other place.
case of Individual &HUF.
5. Municipal taxes paid to foreign
taxable in India. municipality also allowed as deduction if foreign
house income is
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 6 Capital Gain People!
Sec, 45(1);: Charging Section
Any profit and gain arising from Transfer of a Capital Asset shall be chargeable under the head
capital gain in the P.Y. in which transfer took place.

Sec. 2(14): Capital Asset

Capital Asset means
or profession.
A) Property of any kind held by assessee,whether or not connected with business
B) Any Securities held by a Foreign Institutional Investor (FII).
But Capital Asset does not include (excludes)
() Stock in trade (RM/WIP /FG).
(i1) Movable personal asset (used by assessee or dependent family member for personal purpose).
But Excludes: Jewellery, Drawings, Paintings, Sculpture, Archaeological Collection, or Any
other work of Art.
(i) Rural Agricultural Land in India.
(iv) Gold Deposit Bonds, 1999 or Deposit Certificates Interest on Instrument
also exempt u/s 10(15)

@intermediatenotess
issued under the Gold Monetisation Scheme, 2015.

Notes:
1 Assets used for personal purpose of assessee i
TV,Car, Mobile etc-Not a Capital Asset- CG not Applicable
’ Jewellery, Drawings, Paintings - Capital Asset - CG Applicable
2. Gold Utensils, Silver Bars, Silver Coins were held not to be Consider as Personal Effect - Capital
Gain Applicable (Maharaja Rana Hemanth Singh)
3 Silver Utensils held to be Personal Effect -No Capital Gain (Benarshilal Kataruka)
4 Car used in the business treated as capital asset.
5 Jewellery means:
a) Ornaments made of gold, silver, platinum or other precious metal or aloy containing such metals.
b.) Precious stones whether or not set in any furniture, utensil or other article.
6 Definition of Urban Area
a) Any area (municipality, cantonment board etc) which has a population of 10000 or more.
b) In the following area within the distance, measured aerially
Shortest distance from Population according to
Rural Area
area referred in point (a) last census Means Area
Pepdation 10K Or Mera
Which is
upto 2kms >10,000 upto 1,00,000 Population 1OK Upto 10 Lack 6lon Not a
upto6kms >1,00,000 upto 10,00,000 fopulation 10 Lacd
Urban Area.

upto 8kms >10,00,000

Compact 75 CA Bhanwar Borana

war
anaCA (vi) (vi) (v) (i) ()
Iffrom
*"other Part: C Part: B Part: A
The has contract.
()Compulsory
ofa
any Any AlConver
lowing sion Tihne cludesTransfer
The'Transfer' 2(47):
Sec.
asset 23rd Short
redemptiontransactthe ion extinquishmentexchangesale,
held
for
July,
than

24. Unit > >

Asset
other
Any
Immovable Part-A)
Property
is Unlisted
> >
ZCB Unit
>
Unit
UTI
>
of
Security
recognised
STCG Term
Capital
effect
of of(likpossessi
the
e on capital
of
acquisition People! He6
more omitted
of Zero-Coupon
trarnsferrinbecomi
g ng asset there any of or
than
w.e.f.
shares Equity (other
stock
Capital
Asset Asset of
any into of
relinquishment
right
1/2/3 (STCA)
(Shares oriented or imamovable stock under
Bonds member
years
23rd
exchange than enabling there
July, Unit") Types (ZCB) in any in, theof
76 then
24 not Mutual of the of, property
trade, law, or
or or asset,
it so covered of
listed or
is now Fund India
Capital enjoymentacquiring
treated
in in to or
case in Asset be
as shares
of taken
LTCA of
listed Long immovable
22/07/24Upto
otherwise
3 2
Term inretainedor
unitsYears Years
Year 1 a
Holding
Periodof Co.
POH Capital property.
operative
5TCA. in Capital
Gain 6
year 1 23/07/24
From Asset part

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LTCG
applicable society)
ct Years
2 Years 2
Year 1 (LTCA)
perTormance

hich

ICOIb) ICOA:a)case(loSecond
Capital6Gain
In
ng respectProviso ilucleular GaSeci.n48: of
t assets, NOTe: 2008-09 2006-07
2007-08 2004-05
2005-06 2002-03
2003-04 2001-02
FY COI X COA X

added Cost ()Expenses ParvaFultComputation

AcquisLesitiCosso: nt
regardless From CII CII
proviso
indexed:
LTCA of
interest
of
Of of
July (COA) transfer
of
by consideration
incurred in
23, 137 129 122 117 113 109 105 100 C.I.I.
for for (exception) FA-23: Improvement
tu/s
the for the
of
the2024, year the first 24(b)
Provided
term
Capital
Indexation[Not to1 connection
holding in CI I capital year (FVOC)
indexation 2009-10 Cost which fo r
CIT section year or (COI)
2016-172015-162014-152013-142012-132011-122010-11 FY
01-02, in of under that
period. Inflation the which th e asset) of
the 48: the the
benefits improvement year whichever year ConsiderationNet
asset COA provisions
of of COA
Index &
77
are [Link]. transfer Transfer
was COI orCapital
Gain
264 254 240 220 200 184 167 148 is COI
not (CIT) later held should of
to shall
Chapter
available the by applicable
be not
asset assessee
2023-242022-232021-22 2019-20
2020-21 2017-18
2018-19 VI-A.
include Amount
on 2024-25 FY
took
the w.e.f. XX(«) () XX () XX
or
place the
transfer 23rd
deductions
Bhanwar
BoranaCA July,
317 301 289 280 272 [Link].
of 363 348 331
long-term
2024]
claimed in People!Ye5,
capital
 A.

ara CA Individual d) )
GoldSovereign Index referred
Fourth 112A.
u/s > > First
> gainbefore Note:
As Third Notes: CG FVOC COA currency. Improvement COA th en Not e: COA Asset for
People! yes
Indian
into then Such Asset NR
Bond per benefit into proviso FVM = Site
section proviso proviso & capital asset Assessee
|b) A Inacquired
Actual both years 2
2. 1, being (land)
issued Gold AssesseeIndian
Index Transfer to
a) case
Actual as the and
to acquired done on cost and
47, Bonds not to
by allowedsection section benefit currency
gain Shares (includesection +
(i) 01.04,2001
) of before assets.
Costimmovable or bui ld i ng
Building
RBI NO should Exps. shall before SDV FMV
issued & 48: FMV Capi tal
Maturity onCapital
beforeRedemption 48: in
DebentureforeignCapital
be as as
of 01/04/2001:
Maturity
Transfer in48: not be calculated
foreign
1/4/2001- on Asset should
on as constructed are
by case No First available NR Rule
01/04/01
01/04/01 properties on gain separate
Gain RBI. company) 1/4/01,
indexation
of and TTBR Avg. Avg. 115A: currency Gain not on
in of
wil bonds the be land
second where of foreign in Indian in Should within
78 arise year on TTBR
of Method
TTBR case more whichever if is assets
& in the by Sta mp treated years 2 for
in
debentures case proviso first ofdate Company:
way of be th en
case sale. & & ofCurrency of Non-Resident ignored. XX XX Duty the
of proviso TTSR
TTSRtheConversion
on SDV higher is asthen
of purchase
ofDebentures NOT
Transfer Value Lpurpose
Individual on & as TCG we
except Applicable applies. the on
after (SDV) and have of
or acqired
+ NO Transfer dateofdate reinvestment: XX01.04.2001, XX
oncapital
CG togainIf
.
onCapital &
of
that as treated
building
calculate
Apply CG
Redemption Bonds for
Acquisition it on
due Indexation computation shall 01,04.2001 Capltal
Gain 6
(Index

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to separate
Sec be site
of reconverted
Available) 47 avallable as
capitol
Sovereg Bonds STCG
of
LTCG
and
B.

CapitalGai6n
e) d) c) b)a)Cost Sec. If IfSevent provihso
itST
Bonus 2, Notes
1. COA Other
POH it is
OTer If wouldbeBenefit
In Tenancy Right Right
TrademarkGoodwllanyor of55: is paid
Lt
Case FMV acquired Shares case
to to
Acquisition Cost paid paid on Person:
sec, right, carry t I at
of as purchase of of manufacture, of sale/purchase
at
Shares/Securities on & Goodwill, FMV or the timthe toCapital
112A 01/04/2001 before Security on Brand Acquisition Section
Loom other(COA) time
as any gain
apply price in on hours, name
intangible of of
O1/04/2001 01/04/2001 Business
produce, n
Purchase 48:applicable
respect Purchased
Self-Generated and Sale- of
& as associates Improvement shares/unit Security
Bonus reduced Route
or Not
shares from - of [Link] asset
permits treated
NotTransactions fransfer
on
which NOT shall
by with of added
any Business
allotted allotment depreciation available
depreciation or business a as not
ary article transfer to
be maturity
or
or th e Tax
before date in other or allowed
Profession, cost
claimed has case things or expense (STT)
to If Purchase
Price right. profession, of under and
AlwaysNil
01/2/18 transfer acquired been above of (patent acquisition not index
by capitalAllowed
then tclaimed
he available.
benefit
date. on assets. &
Nil or assessee. copyright), gain.
COA after upto
is PY
FMV
as
01/04/2001
19-20, People! Yes
on the
31/1/18
COA
arCA 1. >Right
tock-in-trade
sold, is If Conversion Sec casesException
where As 2. [Link]
Notes: STCG/LTCG >COA/ICOA
> COI/ICOI () FVOC GainCapital
) Capital In on In
. If
per (POH- COA: acquired
any
People! Yes
FMVAmount 45(2): POH: COA: In
Capital case any case of Shares
part (FMV Gain an section Improvement hands
Amount
as assessee
Conversion of of business of of Amount
From From
of recorded on on shall Gain Section other goodwill of by &
stock date date capital 45(1), datepurchaser allotment shareholder
paid
Security
be
converts is assets or paid
of oftaxable asset of notCapital 45(1) profession or (COI) of to
in sharesof to
tradeconversion books in conversion) taxable
capital any allotment
Company of
Company
capital date)
capital
in into Gai n other right
is the
sold of or
accounts
- stock-in-trade Asset the in is expensesintangible any for
then Relevant year asset chargeable
into year other shares
in
80 only XX (x) () XX which into incurred
- Stock of right asset
part Not stock + POH=
transfer: to Amount
capital RelevantConversion ()Sale PGBP such is in tax - of From
PGBP treated
in Trade always
on
stock trade. in business, STCG COA FVOCRenouncement Rightof
FMV the improvement paid offer
Price
gain Nil.
of in as year for applicableCG
shall of trade date
Asset stock transfer, patent, purchase
of Renouncement Price
arise is transfer on to
on in sold. copyright,
or renouncement date
in date trade capital after of XXX Capital
Gain &
the but right N

@intermediatenotess
year of
gain in01/04/2001 right
the
in shall
which following to
XX (x) XX carry
arise
pa
2l CapitalGai6n
nsset onin eto: Section underPGBP Sect28(vi
ionaPGBP): shall In
TheConve
FMV rsion
Section
Normally
) InitialForasset, PSection
OH For
becase
underexempted CBDTCOI/ICOI
Land STCG/LTCG Compensation
Compensation)
)(Initial
FVOC
It Initial If COA/ICOA taxable | the
compensation into Tn Shallbe of
first wil
be
Acquisition,
compensation
Income-tax Clarification
from
capital 45(5):
capital stock
this
incase
2(42A): purpose49(9):
Inventory
of calculated
of onversion
taxable gain the reckoned Cost Stock
stalment Compensation in Period of from
levy gain
Rehabilitation wil trade, year the computing of in of
received Act, Compensation
of - is as Trade datecapiral
in be
faxed PoBP
in from ofAcquisition
the 1961income-tax taxable capifalWnich Holding on
is Taxable The into of
received year the capital
in in on date Capital
sale asset
in instalment and inthe
compulsory gaicapital
n date of
which the year in gain stock into
Resettlement received and
u/s of on
the Assets
96
year of PGBP asset yearcorversion COA which for
stock
of in XX (x) () XX Acquisition
transfer
in transferred of it the and
trespect
he which both of such is purpose
subseguent
Act, Right but taxableconversion into
asset
converted
STCG/LTCGCompensation)
Litigation
Expenses compensation
Compensation
Enhanced
(Enhanced
FVOC
() For under
of in but Capital of
2013 to case in shall exemption
Fair any ary he in of Asset.
tsection into sale
(RFCTLARR) award ofLaw SIT be
capital of
Compensation compulsory is year FMV
into stock,
received. 45(2)
in u/s
or which Capital Referred
Compensation
ItEnhanced agreement asset 54ECperiod
as shall
CA &wil acquisition conversion
when stock asset Txable
shallbe (CBDT
be also and in
receivedtaxable not which
Transparency
be of
sold.
of
and
sec.
28(via).
Circular) People!Hes,
months of
6

has XX () XX
capital capitalcapital
taxable
been
in
arCA
Compulsory
45(5)
Acq.
CA
of into45(2)
SIT Destruction
45(1A)
CA of
Section
Computation If actionCapitalCapital
Normally Section
45(1A): &
COI/ICOI
STCG/LTCG Particular
(-) ()
COA/ICOA
the laCapital
nd Any In If Nature Tinal ion 1t
50% Any Compensat
FVOC no that due any
Conversion preceding shall interest order

of
[Insurance
claim
received,
of
any
or
asset
other iswil
gain
capital
exempt
be
Gains
case, the
to of
Capital
deduction
enhanced
is
People! Yes
CA 2 the death received passed shall
Capital destroyed be Insurance
gain years wil
natural taxable arising enhanced Gain compensation
claim no is from of be bynot
Acq. YearConversion
compulsory Yearof Transfer
of Destruction YearofYear of Gaincapital taxed by transferor, ofallowed on such be
(Money/ calamity due in Claims the tax to Enhanced late taxable
an
compensation court
gain to the the in Individual provided
Individual compensation
u/s is
fire, year for or in
received
FMV the 57.
shall and
flood, in
year
Damage
such
compensation
enhanced other the
of arise. insurance which of or or wil year
82 Summary his land HUF
Compensation
Recd SIT which
Sold Year in Ins, Year
Tax of asset
earthquake, transfer
orparents be authority.
shall ofdue
insurance taxable be receipt to
Recd.
Claim
received claim Destructionof has oncompensation wil
compulsory the
but been
or be taxable
is under same
interim
but
as tsunami, claim case in
received by
used shall
claim)] such as under
Til
destruction
[Link]
compulsory Til dateTil POH is Capital
Asset
of acquisition
for Capital is suchbe
order of
received that
date date then received.
riot,
destruction HUF
agricultural IFOS taxable
[(Sec gain of
capital civil receipt in
of of of
of of by Initial the
any
which in Capital Gain 6
disturbance, 1O(37)]. urban such any the court,

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Ins. FVOC
Claim
Recd.
gain of purposes compensation, year
[Link] ofFMV
Compensation capital other other year
on is agricultul of then
the applicable. in
XX (x) (X XX durine person. bene
date eneny asset

ASpecified
5. 2"MLD"
daily ofthe include ond
figures.
closing
Percentage Tn
1.
STTNotes: Less:Transfer
Expenses
Less: FVOC
Computation the (b) (a)
CaseIn
6Capi
Sec. tal Gain
of:

unlisted t 50AA:
this
equity where not Cost on capit a l after (MLD); or
uni
any means case of Capital
security the capifal
sharesMutual allowed oftrransfer, gain the
a
of
equity
a
security Iwhile
returns Acquisition shall 23bondSpecified
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of
Fund" asseT redemption beJuly, or
classified in
domestic
shareholding areWhichcalculating Gain unlisted an Mutual
calculated case
means deened 2024,
linked 1or of
Fund
companies. a or has d
debenture
bebt.
regulatedMF to an capital to maturity as acquired
shall be followS MF
where market underlying
be STCA gain. &
onMarket
computed as
not returns it& which or
a & is
moreMarket principal CG always is after linked
STCG transferred
on 1"
with th an STCG. Debentures
April,
Linkedcomponent
other so ConsiderationNet
reference 35% index
Debenture underlying 23
of not or or
its in redeemed a
to total allowed.
the STCG Market
the by
securities form
proceeds the or Linked
annual of
A
averagethe of is
SEBI
ordebt
a
XX XX (x) XX
matures
Debenture People!Hes,
invested indices on
security or
and
war
anaCA ZAssessee8. 6. 5.
FMV-2:FMV
Sec Nature
4 3. 2.
For If
[Link]
valuatíon FMV-1: Rule th e > No Revaluation Notes: Sec
Less:FVOC assigning Slump
In > If > Liabilities
Net Less:
worth Assets [IndexLess:TransferComputation
case 50C: Profit computing Expenses
11UAE: net If Value Net-worth
if 50B:
authority)ís of
immovable
Stamp FMV
of ofFMV
worth, undertaking of
undertaking
shall capital under of
self-generated
asset
(on of
Depreciable
Assets
Other
> >
Asset

of
not
allowed
Cost
of
[F MV
value/selling
as of
People! He5
sal
means
e
Slump
Duty Undertaking
Consideration andfurnish PGBP which net comes asset Net Acquisition per
Capital Sale
on gain worth,
certifying held held on rule transfers
value the shalldeduction negative shall worth=
more
property date
for
a
CA for be
COA]
11UAEJ Gain price
arise (Net
than shall transferred thatreport Year 3More goodwill then,ignored Assets ofthe
Received of wort h in di v idual
110% held be transfer even u/ s (Given entire
treated the upto orthan COA mi nus
35AD
of as net Less 3 stock if Value - of inundertaking
84
consideration capital (slump worth, date Years Ni l.
=
WDV liabilities Undertaking) Question) asset.
as - taken was
STCG is
FVOC of - claimed)-
asset, sale) has Audit transferred
LTCG Value) Book as
(Book Value
as XXX per or
shall been Nil Income (Note-1) division
such if u/s Value Consideration Net
sDV correctlybe 44AB
SDV higher in Tax STCG/LTCG for
(assessed/assessable sTampby slump taken
shall indicating lumpsum
arrived.
of sale, as
be FMV-1 Nil
deemed consideration Capital
Gain 6

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the
or
FMV-2 computation
to (3) XX XX
ct be
XX

without
FVO
of

CapitalGai6n
erore
dny 51:
Sec Ihen Sec foWhere
r 269T. Note: g) () (e) (d) (©) otification
Sec 269SS,
269ST, (b) ()
system ant
are
Nornot mally [ValueEVOC- Valuafion
Authority
Stamp More disput ed Where
FMV consideration
b0b: 50CA:
Unquoted
Above BHIM NEFT RTGS
(Immediate
(Unified NetCredit
PaymentUPI IMPSBanking : (ECS)thereofsame, SDV. of5DV than assessee
in
O1/04/2014,advanceAdvance Where
of FMV 8/2020
Other - then V.O
ary
notification (National (Real
(Bharat througha
Card, considered SDV appeal
such
of upto ignored]Stampof of claims
money/token money asset
sales lowerShares
Unquoted Time Debit assessee
fhe then
that
then Interface
Electronic Gross bank date
forfeited consideration
as than (i.e. also Service):
Payment Card: on Authority the
it electronic can the SDV
on FMV,sharesShares applicable Interface): account of A.0.
shall the Settlement): take date Value is
money/earnest
be(Token
for Funds agreement may more
date then other
shall Money) or SDV of ascertained refer
reduced is
forTransfer), modes ary registration on than
of not such
money) ascertainable than be section other inthe the
transfer FMV Treated
AadhaarPay.
A/c date valuation
FMV
85
from money Quoted electronic by
shall 13A, and payee ofbut Vo of
Cost is shall as agreement u/s to
the
Shares),
be 35AD, cheque 50C
forfeited
of be or deemed FVOC modes
property
valuotion
FVOC cannot if
Acquisition" being 40A,43,43CA, as/DD, he ifdate
ascertained
FVOC-
Value Less
by be to Authority
Valuation than officer &
be a may use has of such
the determined [Link]
agreement
bereceived
of S
hanwar
BoranaCA
(beforeassessee prescribed.
electronic
Vo
by SDV (VO) SDV
Asset 44AD, of has
indexing).(present
transferred
is 56,
registration &
consideration
clearing
Stamp People! yes,
not
80JJAA, been

owner)
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ar
a CA Amclgamation
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under 4.
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under 2 1.
Demergad
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(a) (c) Cost(b)ofCast(aofcases In a)Transfertrust) allotted
provided
b) Notes:
Distribution Sec yearforfeiture
Sec. Note:
Amolgamating Benefit IndexedPeriod Transferee
Transfer Following
Holding 47: of

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to
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of
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of
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Co. holds
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shall
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47(vi))
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FA 10 Capital
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yeartransferred New Withinexemption
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earlier 2023 3 have
and yrs or money lakhs XXX XXX transfer ofkalkhs
m of w.e.f . the
after advance
converted LTCG
purchase
shall AY then date on within
24-25] date the of
the of is
be
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propertycrores. compensation
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transfer
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depositing unutilized
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by deposited should
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He Compulsory
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restricted of Mumbai does for13 the death beshall case ConditionsConstruct
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(6.75) house 40.05 the the. the
forof
of
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31/01/2018. transfer u/s such shares the Bor
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CA
on
assessee exemption
RSE,of in Domestic
Company
Listed the later. equity invested
of a units
on
Date 272 whichby the the
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Share in in in fund of shares
session Listed -18 yearfirst orto investedproceeds
17 is such more
of FY the was 01-02, aULIP which eq. Compay
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of
trading casebut of or listed
31/01/2018 of fundis total of
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or its shares
last COAx another proceeds of
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of scheme 90% more
price FMV= and totalRSE. eg. Company
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of
of of or listed
FMV= highest
31/01/2018 unitsproceeds ofminimum
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under on Fund in
31/01/2018: the a of65%listed proceeds
the set-up in total on Invest
31/01/2018 a listed
invests
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31/01/2018 the minimum of units
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31/01/2018 Fund comparnies
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on
not 31/01/2018 meaning: 907% another
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of
price and fund
fund;
other or
onshares/Units listed the a domestic 90%in
on of case,
domestic
FMV
ofComputation
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tonrading apply:whereminimumother proceeds
Uni(Gt/)Shares Fund Invest
aiCopin 6tal other
of
UnitsS not
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10(10D) In equity
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6 excece 241 financial
currency. before
20,25 34.00 34.00 28.00
6.00 (b).July,
in
crores 6.75
in 112A. act
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foreign acquired
(a) u/s
w.e.f. XXX XXXXXX
AY Business sub-clauses
trust. referred
PY26-27
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from 2024, 24, consideration
and
2024; business
LTCG
Net Consideration
Net FA an Business
STCG of
Applicable Gain
units July, by in
under COA112A.
located
[Amended Capital
July,23rd of
Gain or units the of u/s
LTCG unit XXX XXX
- units 23rdafter shares, where Against
exchange COA
shall
be: Gain
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acq. the Capital
equity-oriented
or
before fund
of by unitsof
Equity 10%/12,5%
years for [Added on Allowed
place aggregate stock equity-oriented
HP Rates place equity-oriented of
3 of such 1/4/2018, computation
Mumbai within
Particular
takes transfer recog,
@ Not 92
Tax Asset takes of
taxable
transfer or on 87A 31/01/2018
of certain
shares whichwhichsatisfied; apply respect after
transfer transfer in u/s
taxable; & transaction of
property transfer of shall
acquisition be unit
acquisition FVOC for
of equity are transfer wouldin Rebate or available
on 1,25,000 Paid Acquisition
or on on value
Gain Consideration Mumbai LTCG be shares
expenses
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Less: of conditions (IFSC) & transferred of as
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on transfer 10%
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of of LTCG 12.5%following of centre
arising u/c of 1 Indexation
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Deemed on Deduction & 4
of 1/2/2018 of
Full Sec LTCG @ > > Note: LTCG
service 55: case 1 2
of (a) (b) if even Higher
- Step-
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1. 2. 3.
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case First In
agaínst111A) case (1) In lower.
) Proviso
case the tax 2024, Note:
of of & B A,No. Z
calculated Particular Other IFSC if taxablebe
LTCG Resident ís Basic took
Second of assessee Concessional
Deduction
less NR indexation)
(with
20%
indexation).
(without 10% LTCG of to and Ifa Transfer Transfer STT STCG Sec
place or lower is Sec. the Capifal even (b) (a) 111A:
112, thanExemptíon Proviso whichever is Resident paid
Individual/HUE,
LTCG basic on
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or to
on112 required the attax
listed (Not calculated
olIndividual
d
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took Gain
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s
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rate on20% 15% transfer Tax
transfer for for
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on
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against after Company- torate Tax not STT of STCG
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exemption Section applícable
securities pay onbefore 15%/20% any any eguity of
23rd (other available not oftransfer
& tax (20% LTCG on or or transfer of
STCG LTCG after paid such certain
if July 4810% at HUF than
(other w.e.f with 23rd shares
balance
fthen if 12.57% at 23rd against available
inassets.
/ 2024. transfers July, referred respect whi c h whi c h
111A. STCG transfer Tax AY indexation), the
July, Asset
or
unexhausted total on than Tul23rd24]y without new 24 on takes takes
STCG unít
111A/LTCG LTCG 24 of
units) rate any in transaction such of
income took indexation thenimmovable 112A taxable place place
from
&
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(unutilised)(other place Zero the &translation. before
on
112A Unlisted excess
without 125% 20%
LTCG 111A u/s in or
or property after
before Coupon 207% foreign
[Amended fhe
than above) 111A.
tax the 23rd fund
securíties wiindexation)
th
basic LTCG 23rd Bonds, is
acquired rate)
Normal Tax rate)
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indexation,ignored, by 23rd July, or
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112, assessee
4 2024;
or is Tax

@intermediatenotess
In before on 24 of
LTCG shares
24 higher (slab
Rate RSE 2024
whichever other
Rate w.e.f. business Capital
Gain 6
& and
can 112A 12.57%without can than 23rd (slab locatedJuly
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words,
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& is
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of perSec, of Sec,
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regard
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15% per Case: Total 1,70,000x
= 49 company. there for shares asset
more assesee
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company.
holding such of to value FMV (V.0) to Ram
[of
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ngPreviousof of capital
no
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manner
be
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asset of compary. amalgamatingofanother

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compary
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in becomes LTCG
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in is
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become All Demerger
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of 49(2C); share 47: 2(19AA),
considered shareholders assets
oriíginals
shares
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COA Paid
=
held in COA
of
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resulting
of of
resulting
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ompary,
e
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96 Compary
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of Period hands in concern Jewellery
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2)
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issues, by
demerged of
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assets of except at
shareholders
which shares its Book (tanishq) (Resuting
Co) Ltd.
Tanish
fulfilled
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transferred shares (tanish
shares wihen value Co.
XX in of
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before were of demerged
fhe tofransferred
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its
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demerger held shareholder or
in Compary by mor e
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demerge Compary compary to
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be undertaking
om
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itself
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nydto which Sec shares of of (Sec.-55) COA POH
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applsharehol Distribsutec ion sec. of Fsset
ibuted shall
Company
115QA, of
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assets shares:
of assessed
of
asset Shareholder trarsfer.461):as Company
of
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47
there
receivedin
be shares Full recd. hands
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calculated
under:as Domestic
Taxation received inDate Gain
liquidation, o.
income the deemed
Value on
of
trested
paY of date Hence,
hands of sharehoder.
fax =Company Company ( in underAcquisition dividend
Consideration of
Buyback Case of Distribution rezVs Capitd
within of Liquidation SH
w/s
14 price shall (listed Buy in to STCGILTCG any in
7 days the date (FVO)2(22yc)
- pay asBock year money d
from Issue tax well [upto is
FMVLiquidetion
in
of
or cpy
rot
as
date price 23296% unlisted) 30 ofwhich oiner in
such bads
(inclof
uding Sep. he csss
ibution. (20%-12%+47%) received
oeset ch
2024] frm
an comgy
war
ranaCA
premium) the aeszts comgay
dete
on ofunder
distributed distribution hen
Liguidtion capta
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>Inhands of Shareholder Capltal Gain p
The amount received by shareholders on Buyback of shares shall be
treatment in hands of shareholders. exempt u/s

Taxation in Case of Buy Back by Domestic Company w.e.f. 1* Octoben 209,

In hands of company: There is NO Tax treatment in hands of
> In hands of shareholder:
Company.
|(0) Sec. 2(22)(f): Any payment by Company on Buy Back of
shares shall be
IFOS as per nornaltreated
dividend in hands of shareholder and it is taxable under
(b) Buy Back is treated as tox no
of shareholder.
extinguishment of rights so CG is applicable as per section 46A inL
|Computation of Capital Gain
Particulars
FullValue of
Consideration
()COA of shares Always NIL

@intermediatenotess
POH = Date of Acquisition till
back.
STCL/LTCL
date of Buy
(x)
(xx)

Example: Mr. BB acquired 1,000 shares of BB

buy back 300 shares @ 120 per Virtuals Ltd @ 50 per share during PY 20-21. BV
share on
Discuss Tax treatment in10/12/2024.
@ 200 per share. Mr, BB sold 700 shares on
hands of Mr. BB.
15/07/20
Solution:
(a) During PY 24-25,7
36,000 (300 shares x 120) is treated as
BB u/s 2(22)(f) &it is deemed dividend in hands of Mr
taxable
(b) Computation of Capital Gain under IFOS.
on Buy Back
Particulars PY 24-25 AY 25-26
Full Value of
Consideration
() COA of shares [300
shares x Always NIL
LTCL (it can be setoff against any 50]bo
other LTCG or (15,000)
AY's.) C/F for next 8
(15,000)
(c) Computation of Capital Gain on
sale of 700 shares
Particulars PY 25-26 AY 26-27
Full Value of Consideration [700
shares x
()COA of shares. [700shares x* 50] 2001 1,40,000
35,000
LTCG 1,05,000
Less: LTCL of last Year (15,000)
Net LTCG Taxable in AY 26-27 90,000
CA Bhanwar Borana
98 Comp
 Income from
7 Other Sources People!
Sec. 56(1); Any Income which is not taxable under Salary,IFHP, PGBP or Capital gain, shall be
chargeable under IFOs.

Sec. 56(2) Income taxable under IFOS

Dividend
Winning from lotteries, puzzles, card game etc.
> Interest on securities (if shares held as SIT then taxable under PGBP)
Rent from letting out of P&M or furniture with or without building, if not chargeable under PGBP
> Any sum received under keymen insurance policy if not chargeable under PGBP or Salaries
Interest received on compensation of compulsory acquisition of capital asset
Gift
>Other income taxable under IFOS:
Amount received under family pension.
Interest on bank deposit &loan given.
Interest on Income tax refund.

@intermediatenotess
Income from sub-letting of house property.
Royalty income.
Agriculture income.
Director sitting fee.
Salary of MP/MLA/ MLC etc.

Taxation of Gift
1. Any gift received by employee from employer due to employee - employer relationship - always
taxable [even if received on marriage] under income from salary.
2 Any gift/benefit/perquisite arising from Business or Profession -always taxable under PGBP.
3. Other Gifts: Lets discuss section 56(2)()

Any gift recd./asset acquired for

low consideration by Any Person

[Link],I.T.C. (Note-1)

Sec. 56(2)(x) Not Applicable Otherwise

Not Taxable

Compact 99 CA Bhanwar Borana

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or 20-21 as
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premi The X on on policies bethe The
under 10% term LIPs the for "X"issued premium consideration
in under annual exempt aggregate
111
consideration P.Y.
LIP ofpayabl of e term LIP is 2032-33. LIP premium does
term
actual "A "A, nobefore t 62,00,000 u/s of
C these and theseofLIP an
does 55,00,000550,00014.2022 X C not
10(10D) these
of
for under alone payableexceed annual
alonecapital two B" eligible not
1.4.2023, received
these policies. "B'
policies would and exceed any
10,00,0001,00,0001.4.2023 would policies.
inpremium
would sum
two
LTP.
limit other40,00,000
70,00,000
12,00,000 A in
5,00,000
A.Y. A
LIP
assured.
nof nd icies be
apol 10% under not respect 2034-35,
However,payable
exempt C of LIP eligible be
be annual (being of 35,00,0003,50,0001.4.2023
hanwar
BoranaCA exemptu/s offor
exempt 5,00,[Link] the "X LIPs B these anyY since the fLIoPr
premíum does u/s LIPs actual wOuld
in previous
year
consideration
aggregate
10(10D) policies
u/s
10(10D) payablexceed
e
not issued
in
capital be earlier
amount exempt
60,00,0006,00,00014.2023
C
10(10D)
does
Peaple!
LIA,
P"B
yes,
on sum P.Y. of
AY or of
in in
orana
nwarCA
|[Link]
Note
maturityConsideration
maturity assuredSum
premium DateofExample 9:
Annual issue Consequently, u/s exceeds The with 10% in
preceding In
Eligibilityfor [Link]
maturity
Note maturity assured
Consideration DateofExample B
SumAnnual issue
premium
- 10(10D) this P.Y.
The aggregate the of preceding
assessee
the received received
5,00,000 premium case,
in
actual
2033-34, The
-
Peaple!
[Link]
A.Y. thcapital
e exemption assessee
of the received received
P.Y.2034-35, did 2035-36. during [Link] for since
LIP
sum P.y. LIP
not as
on
as annual LIP the 2034-35, did
as as
on the "X" assuredannual. u/s not
receive01,11.203401,11.2033
premíum eXceeds' of 10(10D) receive01.11,2034 on01.11.2033 on
except received term the
premium except
any of annual-Consideration
LIP any
under these
112 on payable
consideraftion on 5,00,000 LIP on on
X premium does consideration
in 30,00,000
25,00,000 policies. X
P.Y. 2,50,00014.2023 LIP forduring not in 50,00,000
45,00,000
P.Y. 4,50,0001.4.2023
2033-34., under 'A ", [Link]
LIP exceed under X
2033-34.
LIP "A" the under
24,00,000 60,00,000
any38,00,000
70,00,000 25,00,000
20,00,000
2,00,000
1.4.2024 B" andfhe term 5,00,000 LIP
other A
and LIP any 12,00,000 00,000
10,00,000
15 1.4.2024
of X other 1,00,000 A
LI?C "A",LIP would
eligible premium these
and

@intermediatenotess
2,50,0001,4.2024
6,00,000 eligible
would policies. "B" also be ,00,00081 60po000|150
14.2024
SourcesOther
Income
from
LIPs exempt
pa for and does LIPs
B

in not
earlier 14,2024 be LIP LIP not u/s in
C exempt "X "Ca 10(0D) earlier 00,000
70
C
142024

alsn

Sources
other 7
he in
It ofLIPs Alternative
retceihe ved If inpremiumthe
IfpremiumA.).2035-36
10(10D) In ofin
[Link],hYis .act2033-ual El3i4,gibility
onSum Annual issue
Date of Example10: 10(10D). received
more premium
AY. preferred However,
ct preceding Note 01.11.2035 01,11.2034
maturityon
Consideration receivedassured
Consideration
Surrender
maturityon
Consideration may these exempt
"A"
the Incomefrom
2034-35
The
- premium
be
noted two and u/treatment:
consideration
payable under
under consideration
payablefor the LIforP capital for
as s as the exemption
the
assessee on
policies. "B"
10(10OD) by itLIP LIP
consideration
received received1.7.2033 that together is aggregate Sum since
P.Y.2035-36, LIP
in
However,
the "A" for L
LIP
received B"LIP
received "Xexceeds assured. the
did assessee, Lf would
in beneficial would
as as every
did A.Y. the "X" X annual u/s
not on received of
the 10(10D)-
on
exceptreceive case, the Z035-36 not consideration not and under not and under
"B premium
exceed'500,000
the most
then, to bedid exempt. be A 500,000 annual
texempt.
he did under
LIP any 12,00,00020,00,0002,00,000 1.4.2023 LTP
not LIPA Thec
beneficial since the assessee.
consideration not prenium does
13 considerat"aXn"d ion X consideration under Exemption exceed
the claimed
B
is exceed' is
LIPs"A during Consideration
not
aggregate claimed payable
"y". 24,00,000 20,00,0002,00,000 14.2024
14.2023
1.4.2024 treatment for LIPX 500,000 500,000 orB the
exceed
received for to term under
any received was to
under consideration be be (any of
for
500000
of
is the the of not for
exenpt foexempt
r LTP"A LIP
any for to one)these
other 24,36,70,000,0,00000000
20,00,000|30,00,0002,00,000 A
im annual under
LIP claprevious claimed any any
yof can
policies. LTP and would
"X
"C of as as
the the be "B' also
Bhanwar
BoranaCA eligible would LIP premium LIP be toreceived naggregate
PYs.,
aggregate
PYs., clainmed and doesexempt be
"X* years A
3,00,000 not and andexempt the LIP
LIPs the nof S
be 'B during
payable LIP under
consideration
of annual
the of as
C
in
60,00,0006,00,00014.2024 exempt as "B
u/s LIP"B consideration
the exemptu/s along u/s1000D)
exceed
Peaple!
earlier C exempt. the for woul10(10b) d annual wiin 107%
term
u/s the is
P.Y.
ara CA
if oflife the
the theClarification after
aggregate
Clarification 10(10D).u/s Itafter received If
exemptconsideration
under premium If for exempt LIP
insurance limit may the the exempt, Alternative
exempt
Y 10(10D) premium
Theaggregate Thexceed e 10(10D)Eligibility
insured death 14,2023, any "X"
1.4.2023, LI P woul d
person policy of
5,00,000
the premium
of
on
premium
for GST
on
noted
that,
be consideration

whose
underunder
section
both preferred
"B"
received
consideration of u/s

is
payable
consideration
aggregate
PYs.
th e,
as
the 10(10D)exempt be 10(10D) u/s
treatment:
exceeds'
consideration
and inpayable
"yA.Y.
2036-37,
consideration 10%
of
annual actual
of People! Yes
A.Y
exemption
2034-35,
,
in
for
survivesperson i,e. any f o r for
LIP ureceived
payable
Component: LIP on received in in received premi
where of
of PY, aggregate in 10(10D)
"Asurrender
" under LIP ofA.Y, atnhde A.Y,
consideration If
m capital
insured amount Term would every the "Y " since u/s
the fora and as "y" 2036-37, 2034-35 the aggregate
5,00,000. since
Sum in it LIP under annual under does under sUm
policyduring under oflife belife It consideration case, AY.2034-35 LIP is and consideration on payable 10(10D)
the
exclusive ofmore "A" premium not assured,
LIP
premiuminsurance insurance consideration is "B " LIP would "B" received LIP If theby LIPs annual
14 tenure,
the life a also would beneficial di d th e exceed for "Y -
"X "B" "A", The
term payable clarified not consideration
not is payable received
of LIP woul d premi u m
insurance of does beand and assessee, annual ULIP 107% "X"
policy:
policy/policies,
the exempt on
be
exceed
claimed under
surrender consideration
be
of received A.Y.2035-36,not
to
exempt. ofexempt
a nd
the would It amount by maturity the LIP for premium " B" does
policy exceed fo under th en actual "y"
policy is the in assessee, LI"YP" and
be "B" received
is
further
not of
CBDT
A.Y.2036-37
under Exemption
5,00,000 LI P the under capital does u/s ín not
10(10D)
and only be GST other
respectively, LIP
of exempt would
and consideration
payable ULIP exceed under
applicable 5,00,000),
LIP "A " not
no paid clarified payable than that under "LIXP"
amount "y for for as not "A" LIPor for
"Cexceed
sum LTP
"C be "X 500,000
to (being aggregate di d would would "X"
the on athe would
were
consideration any exempt. not LIP these asSured
Ay Sources Other
in by ULIP, "B" was Income
from
nominee is such premium LIPs then not exceed " A"received
paid case the of not three not 5,00,000
2035-36,

@intermediatenotess
not (any
is ulsand be
consideration claimed the of
to ofa CBDT [Link]
be exept
be issued cloimod one) claimed dlso
received PYs., the 5,00,000
anyone in payable/ policies exempt and
case term thaf on exempt under Since does
on to annual can to annual
or or be the be LP be
and u/s

notido
t& Sources
other 7
Maturity
Amount
Premium
Annual
Total Less: (A) 56(2)(xiii)
dComputation
PaiParticular under [Link]. than Solution:
Mr. under
IFOS.after56(2)(xiii) Mr.
rity Insurance
MatAmount
uDeductíon yofAssured
TerPolmicPremium Sum
Annual Example othperremium KIP &Any sec
sum is/ Incomefrorm
PremiDeduction
um 01/04/23
Kavi Ram
5,00,000
Annual01/04/23Annual -
-
of
Hari
-
As
annual
claimed
intend to
Harí,
provision of
paid ULIP
received, including
during which
56(2)xi I)n:come
so Ram
paiClaimed
d Taxable is
premium exemption
premium
Particular take
thís ís
more is
premium u/s & the not
net more 80C any Kavi Act, from
of u/s amount than exempted
term
exceed thanwithing u/s every ofher take computed
deduction 80C 5,00,000 within
life of
bonus, Life
from the 5,00,000 10(10b) year insurance. such Insurance
the the insurance u/s af
LIP inIife
Income u/s
Taxable solim i t lim it limit such 10(10b), any
80C under exemption of soavailable. of policy insurance tfimePolicy
107% exemption 107%
of policy manner
(B) IFOS 107% 52,00,00060,000 Years 45,00,000 duringa
the
4,00,000
10 in
of Notofhing of as sum
policy, Harifuture. on
u/s sum u/s sum sum may received PY,
10/07/24.
10(10D)assured 1O(10D)assured wiassured
l Díscuss be and under
(Added
be prescribed. not
5,20,77,00000,000
40,00,37,00000,000150,000 RamMr.
not & not taxable but &
77,00,0001,50,000 Years 60,00,000
520,000
10
Ram tax
They claimedexceeds
aslife a
by
premium
available annual do insurance FA-23
available
premium u/s treatment not
orana
warCA asthe
on 56(2)\(xii). premium have deduction wef.
PY & policy,
policy & on 80,00,000 60,00,000 aggregate
33-34 it it 1,20,000 650,000
Years 10
Kavi
[Link] AY
polic y
6,50,80,00000,000 is is
27,00,53,00,000
000 1,20,000 Kavi
Mr.
taxable taken
AY taxable doesnt under other24-25) Pesple!
taken pollcy of
34-35 on more any The tras
u/s or u/s on
 8 Clubbing of Income Paplel
Sec 64(1A): Income of a minor child
Income of a minor child is taxable in hands of the parent whose income is more before clubbing.
minor's income.
Exception:- In the following 3 cases minor's income is taxable in the hands of minor only:
Income is due to manual work.
/ Income is due to skill &talent.
Minor child suffering from disability.
Notes:
exemption u/s 10(32) of 1500 p.a.
1. If minor child's income is clubbed in the hands of parent then
per child is allowed to parent.
continue to be clubbed with that parent only,
2. Once minor's income is clubbed with one parent,it will
other parent after giving an opportunity
in subsequent years. A0, may,club the minor's income with
to be heard.
income of the minor will be includible in the
3. Where the marriage of the parents does not subsist,
relevant PY.
income of that parent who maintains the minor child in the

@intermediatenotess
4. Clubbing provisions are attracted even in respect of income
5. Child in relation to an individual includes a step-child and an
of minor married daughter.
adopted child of that individual.

Sec64(1)(iv): Asset transferred to spouse

consideration or for inadequate
If any individual transfers any asset to his or her spouse without
paid by
consideration then income from such asset is received by spouse but tax on such income is
transferor (Assessee).
Notes:
the time of
1. The above provision is applicable only if relationship of husband &wife should exist at
transfer of asset as well as at the time of generating the income.
2. This provision is not applicable if asset is transferred in connection with agreement to live apart.
3. If a House property is transferred by an individual to his spouse. or minor child (Not being a minor
married daughter) for without/inadequate consideration then such individual is treated as Deemed
sec 64 shall not apply.
owner as per sec 27 &

Sec 64(1)(vi): Asset transferred to Son's Wife

If any individual transfers any asset to his/her son's wife without consideration or for inadequate
consideration, then income from such asset is received by son's wife but tax on such asset is paid
by transferor.
Note: This provision is applicable only if the relationship of mother/father - in law &daughter - in
law exists at the time of transfer of asset as [Link] at the [Link] generating the income.

117 CA Bhanwar Borana

Compact
na
arCA
If Sec provision 2. 1
income Exception: In Sec handsof
transferor. If Sec spouse
includedincluded income Exceptions:
Where such Substantial
If (S.M.E.B.S.
Relative
Assessee +
any 64(2): case 61:
spouse, IncomeIncome Sec consideration
Such any If Sec
an 60: an
individual
from individual remuneration remuneration 64(1)(): other 64(1)(vii/vii);:
such
Asset

transfer
transfer
applicable.
is
notrevocable
Revocable
If
of

transfers
Income
opportunity
transfer
an
in
the the
total total
in
whose
total of
way
byboth
husband
remuneration
interest should
spouse
be
of
Income
person
individual
for
Peaplel
transfers
asset transfer remuneration in is(transferee) transfers
transfer, is LALD) should the th e Asset
is is of incomeincome, attributed
income and taxable of
received to revoked awithout
ny being wife nature spouse benefittransferred
any HUF of be
income of of
excluding in any
income asset heard, theeither received
from haveFirm/AOP/BOI Substantial received
asset transfer to Company of
hands from but of
after
by
HUF to is without other substantial such
concern,
salary, tax son's asset
that spouse, such a
18 received
the qualification by
Interest froma of
concern on to anyto
but his of it
spouse spouse commission, assessee wife/spouse
such
death transfer asset is incomeincome such any
taxable HUF necessary concern person
by interest
due
(Co/Firm/AOP/BOr) where income person
without/for transferee of unless income + Concern if
beneficiary arising is then following for
hands
in of
higher. to 20% more
20% or
where bonus assessee isthwithout
en
asset tothe technical
in paiincome
d the
do AOin concern wil a the or
of but then be above more (remuneration)
assessee conditions by benefit
inadequate so. thWhere
e has
transferor or is includible &PSRshareholding
Remuneration [Link]
from
transferee tax such succeeding
satisfied, provision
professional
and substantial ofClubbing
is any has
paid income
both substantial &are
spouse/son'
such s
consideration, such in
(member) by after year the are is Spouse + satisfied: asset
then
transferor. taxable
is
income hands qualification not interest inadequate or of

@intermediatenotess
in is for Income
the giving shall applicable
receipt wif
interecs received
The above in not is of
the that once that A
be of & by

6. 5 4 3. 2. 1
IncomeNotes:transferor. After o
from formula:
#business
Income to If Ifclubbed.
shall be
Where gifts,
transferred
[Link] All
Clubbing
Business Clubbing
Mrs .-Gifts)dered
[Link] Where
thNate ural
the there o
clubbing any the in R48,000
Clubbed XMr. an Clubbing
by provisions 48,000)
(Int. (Mr. X are asset love includes
shall transferee asset above totwo asset partition
Mrs. X Mr.X,X's gifted transferred
be
a
&
provisions be is transactions affection transferred loss, of
applicable example,
transferred wil wife). of Income
12 device so,
then be HUF,
are X applicable Gifted Lakhs is may if
proportionate for sold there
is
not onlyCapital Lakhs
8 lakhs 8 to
amount his evasion
and be
converted
Income
by by a
applicable if individual theyy
the good loss
is
gifted of isonly brother's from
BusinessAssessee
Gifted by profit matching to deposited
tax
are
transferee
of consideration into then such
119
to money to the inter-connected
other also
second his extent wife and asset
isfirston ofamount. in clubbing
included spouse/son'
such s (Int. ? Banks@ ([Link] then
but form, recd.
generation day business
of Mrs. Y lakhs12 Mr. Y
Y) CG it's provisions
income72,000) 9%his & and is not income by
in of clubbing part
treated spouse
opening P.Y. on s adequate t derived
income shall wife on 1/8/[Link]
(Opening the of are
besuch & provision sameincome as shall
war
anaCA i.e. capital. clubbed
matching (Mr. shall &
consideration. [Link]
Clubbed
48,000 be
income Capital) amount transaction, such clubbed
giftedY) shall
from as amount converted
per is apply. [Link] in
invested
accretion following
cross
of Lakhs 8 (Cross
shallbe
it
asset
hands
Voople
in of
 9 Set off &Carry ye5
Forward of Losses Peaple!
Sec 70: Intra head adjustment
It means loss from one source of income can be set off aaainst income from anofher Source oT
income but in the same head of income.
Exceptions:
Speculative business loss can be set off against only speculative business income.
Specified business loss (Sec 35AD) can be set off against specified business income.
Long term capital loss (LTCL)can be set off against long term capital gains.
Loss from owning &maintaining race horses can be set off against income from owning &maintaining
race horses.

Sec 71: Inter head adjustment

It means loss under one head of income can be set off against income
from another head of income
but in the samepreviousyear*.
Exceptions:
Speculative business loss can be set off against only speculative business íncome.
@intermediatenotess
Specified business loss (Sec 35AD) can be set off against specified business
Long term capital loss (LTCL) can be set offagainst long term capital gains.
income.

fromowning &maintaining
Loss fromowning &maintainingrace horses can be set off against income
race horses.
Short term capital loss (STCL) can [Link] off only against STCG &LTCG.
Loss from Business cannot be set off against salary.
*For carry forward losses Inter-head adjustment Not Allowed

Summary
1 Income From Salary- Loss not possible

2. Income From House Property - Loss from HP

Step-1 Intra head adjustment
Step -2 Inter head adjustment (Max 2,00,000)
Step- 3 Carry Forward for next 8 AY's

3 Profit &Gain from Business or profession

() Loss from Speculative Business
Step- 1Setoff against speculative business income
Step- 2 Carry Forward for next 4 AY's
() Loss from Specified Business
Step-1Setoff against specified business income
Step-2 Carry Forward for Unlimited Period

Compact 121 CA Bhanwar Borana

arCA
32
2. 1.
74A 7473A 73 72Section 5.
718 against ItLossNotes:
(ii) ()
Income 4.
is (i) STCLCapital
)Gain
tofrom Step Step -St2ep Other StepStep Loss 7(iii)
Unabsorbed
Dep. horsesOwning LTCLSpecified
STCL
Business
Loss Loss
Speculative
Business
Business
Normal
Loss from
LossHP
Losses
the be Step Step Step Step Step- Step Step Any
- -1 from LTCL

maint.
& to
be
income house
remembered

from
prop.
3 losses
Carry Inter Intra Carry
of
-2 -1from -2 -1 -2 -1
SetoffOwning other CarrySetoff CarrySetoff
other
3 -2 1-
Carry Inter Intra
People! yes
C/F Forward
adjustmenthead head IFOS
Forward sources
Business
race the that
which against & Forwardagainst Forwardagainst Forward head head
adjustment Maintaining Loss
Carry
same
once
can NOT fOwni
or ng for LTCG for STCG
adjustment
adjustment
be for
salary Anyhorses
race
Income LTCG Specified
STCG
LTCG &
Business
Income
Speculative AnyIncome
fromHPB/F head allowed. next next next next
set-off
a & or
Forward race-horses
2 head Income losses particular
Business AY's 4
Maintaining 8 8
AY's LTCG
in (except
8
the AY's
of from against AY's
Income Owning Business
Income setoff
forthcoming&
Set-off loss Salary)
except &
against income
is
race-horses
maint of carried
Losses AY's. from
Unlimited
Years
4 Years
Years 8 8 Years Years
Unlimited 4 Years
8 8Limit
Time forward, any income
other
Forward
Losses of
ithead Set
can off

@intermediatenotess
be is &
max, Carry
No Yes Yes Yes Yes Yes Yes NcROI
timeon set
off 2
lakhs
only

3. 2 1
7 6. 5. 3,/ 2/ 9
Transactions Transactions
Transactions 68
against If toSet off If Order losses B/frfom show,etc. set Whenever
Los Notes:
r r assessee 69D ofagai
f Unabsorbed J V
nst depreciation
depreciation there of Forward
Always Capital PGBP any of is B/f
year for
Current from
Normal
Always [Seclosses income
the loses set against ianyncome of
if in other opted
Speculative
Derivative
in
Business
Income in
shares Gainsharesshares income off a lottery, the LoSses
head
115BBE1. not under from businessof income exempt is
if section losses.
permissIble
Business whereshares heldwhere and before any Business cara
canreferredgaes, fhen
i.e. as it
115BAC head
futures, delivery held Stockdelivery cannot set be
or loSses
Income against
off profession
& set races,
as default eligible
in Stock be off u/s
options not Capital trade
effected carry unexplained elf
&
even 1158B etc
does
effected & tax losses
of are not
Asset Commodity forward. losses(CBDT if i.e
23 etc. regime such lottery Not have
under
& i.e., income, business Eligible ary
currency then tax
Intraday market any income,
circular). other treatment for
investment,
HP is
futures ,Crossword
Not set
head
head, off
continued.
lossesnotto f&C/F means t
at such
money
recognised puzzles, it
loss &
warBorCA
a etc, Lossesshould
allowed shall
stock
chargeable
first
be
income
cannot
ignored.
in
be
People! Jes,
exchang setoff
set TV be
u/s
 10 Deduction yyes
from GTI People!
1. Deduction u/c VI-A is restricted to Gross Total income &deduction cannot be carry forward.
2. Deduction u/c VI-A is Not Allowed against LTCG, LTCG 112A, STCG 111A &special rates of fax
income.

Payment Related Deductions

Sec 80C: Specified Investments
>Eligible Assessee: Individual &HUF
Amount of Deduction: Max 1,50,000
>Eligible Investments
1. Life Insurance Premium (LIP)
For Individual: Self, Spouse, Children
For HUF: Any Member
Policy issued on or after Policy issued on or after 1/4/13 for person
Policy issued before 1/4/12
1/4/12 with disability (u/s 8OU) or person suffering
from specified disease (u/s 80DDB)

@intermediatenotess
() Premium Paid XX (i) Premium Paid XX () Premium Paid XX

(i) 10% of Policy Value xx + (ii) 15% of Policy Value XX

+(i) 20% of Policy Value xx

2. Amount deposited in Public Provident Fund (PPF)

(For Individual: Self, Spouse, Children)
(For HUF: Any Member)
3. Employee's contribution to Statutory provident fund, Recognised Provident fund or Approved
Superannuation Fund (SPF, RPF &ASF).
4 Amount invested in NSCas well as interest accrued on NSC.
5. Repayment of Loan taken from banks or financial institution for purchase or construction of House.
6. Fixed Deposit in ascheduledBank or Post office for 5years or more.
7. Tuition fees paid for education of children. [Max 2 children for full time education in India]
8. Deposit in Notified bonds of NABARD.
9. Deposit in Senior citizen Saving Scheme.
10 Contribution towards Unit Linked Insurance Plan (ULIP) or ELSS.
11. Notified units of Mutual Funds or UTI.
12 Notified Pension scheme of UTI or MF.
13. Deposit in Sukanya Samridhi scheme A/c[For any girl child of individual or girl child for whom such
individual is a legal guardian].
14 Stamp duty, Registration fee for acquisition of house property.
15, By employee of CGas acontribution to aspecified account of the pensionscheme referred to in
Sec. 80CCDfor afix period of Three years or more (NPS Tier - II).
16. Contribution to National Housing Bank (Tax Saving) Term Deposit Scheme, 2008.

125 CA Bhanwar Borana

Compact
r CA Intransfer employee For Notes Employer's Contribution
Employees|) Eligible Sec
contributions Sec implication. an extent gets
Sec assessee He coveredu/s Sec ) Employee Amount of Sec Amount
Assessee:
Individual
Eligible
case Subscribers assessee As
per the
Example: Salaried
80CCE: * deduction80CCD(2): can 80CCD(1B): 10% 80CCD: 80cCC:

partial
of
their or
is 10(12A) 60%
Sec
ofpurpose
14
%
10%* contribution
whereEmployer's
first
Assessee' c an s salary
of
Deduction:
1,50,000Max
Contribution
Assessee:
Deduction:
of
Contribution
People yes
Aggregate made Non-employee,
from Fully (40% claim 80CCD(1)
claim71,10,000
corpus of /14%* u/s
Employer's
withdrawal such 80CCD(2) u/s
Additional Individual
by Recognised Exempt. is any Sec
contribution Max
deduction him from taxable) contribution
8OCCD(1)
payment Contribution
of is
80CCD(1B) to to
(Fully any Salary contribution
first deduction Pension 1,50,000 Pension
&
these
from Provident (20% HUF
taxable amount of
received taxable of
XX XX
Sec
u/s total & of - scheme Fund
NPS funds (2), made 80CCD(1)
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+for by to Funds
receivedamount Salary
by by under NPS to to of
of LIC
80CCC
non-salaried an assessee CG & 50,000 Central
employee, National and frompayable
means
or
80CCD(1)
the for remaining towards or
the other
+ S.G. XX XX head t(i)
80CCD(1) Super-annuation on = shallAssessee's )
Contribution Govt.
NPS benefit Insurance
Pension to Basic
closure salary &NPS 20%
employee) payment byhim salary remaining?
90000 allowed
otherbe /
FAtax * & of National
is the at 24 14% in of GTI GTI
System regime
restricted
shall nominee the hisof+DA w.e.f. Employee
if hands u/s
is
company
[Sec time assessee
AY 80CCD(1).30,000 Pension
Funds account (In 25-26] u/s
10(12B)]. be (NPS) legal of 115BAC Employee
of 5,50,000, Individuals
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fromGTI10
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without
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upto be on In & this
1,50,000 then
XX XX

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igible Sec
(ii) (ii) () Deduction Cash, Mode of Eligible
made in
Amount of For Sec assessee Note:
tax. Sec and Sec Sec Elor De
2): after 80CCH:
(A+B) MedicalAdditional
Mediclaim
Deduction
Maximum for General
shall
yearbe:Where Aggregate
5000/ Senior Preventive Medical
CG Whom:
Assessee:
80D: 10(deduct
As
here)
: iothnen80CCH(1):
12c)80CCH(
claim
can EE Assessee:
Exps. Deduction Health payment:
modeAny Medical and per 1,100%11,Contribufion
2022
the premium Deduction
Citizen insurance HUF-
Individual CG Any
payment Agnipath 100%
medical of Healthscheme wil amount Individual
Senior - [i
Particular
Any Individual Ins. also a of of
not Age(When +
for ii Premium
check-up member -Premium, scheme CGhis fo
PY's insurance preventive
paid
citizen 60 + Self, contribute received contribution
Agnipath
i] contribution enrolled
for Mediclaim or other spouse, &
in (Age more) of HUF CG 30%
Such
whiLumpsum
premi
ch upremium
m than HUE. Health matching
by in
Schene
health person 60 taken Parents ofassessee to
Agnipath
or Cash, monthly to
Insurance more) Scheme, Agnipath
Agnipath (Added
is check-up amount. or
paid butdependent.o & scheme
&
dependedSpouse,
Self, payment Preventive package his
Corpus by
7 in in nominee Corpus
force lumpsum of 25,000
Max FA
self,50,000Max50,000Max 25,000
Max subscribing
Yes Yes Yes should Fund 23
Children Individual ofchildren. Fund
spouse, Health from [Link].
for preventive contributed (first
more Agnipath 24-25)
to AY
dependent check-up the
Parents it
than 25,000Max 25,000
Max NoYes is Agniveer
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50,000x Max Yes health taxable
to Fund
year, 1 children check-up
&
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warBorCA Yes
deduction & 25,000
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 [Link] 2. 1.
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of Sec assessee Deduction
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of
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should
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should
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of
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case tenure Mr.
BBPeople! yes
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wil HUF - Deduction: deduction is p
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- before be 5
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or 40,000/*1,00,000 Resident reversed Anydependant incur Resident 10,000.
years= yearshealth
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for dependant on dependant expenses () (0) allowed insurance
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expenditure treatment attaining
in Spouse, Normal i.e.
handicapped respect Severe from
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of
relative age on disability Maintenance 6
disability
disability HUF of memberBrother,
medical disability PY's 01/11/24premium
on Medical of
Assessee &
(Spouse, the HUF handicapped
60
Sister, HUF ie.,
treatment years of treatment :75,000 (80% from til to
:75,000
(80% HUF of
XX XX XX XX XX treatment 31/10/29, star
Brother, of Children, orHandicapped Py
or
more of
assessee. more 24-25 health
relative or
specified of
disability) Sister, specified Mother, depositdisability) til Calculate of
received dependant PY
60,000
Children,
diseases any 29-30,
=1,25,000 Disease
Father. amount
=1,25,000 deduction
annuity so for
relative
Mother, for deduction 5 from
for
; before
toyears Deduction
10 GTI
be

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maintenance
Father) allowed on
the for 01/11/24
death py.
of :

fromn10
GTI
Conditions Eligible Sec assessee in Sec
h Eligible
ConditionsAssessee:
Individual
Eligible
Amount Sec r Conditions AmountEligible Sec r r r r
Amount Assessee:
Individunl
50,000Max. Deduction whicAmount
interest Assessee If LoanStamp Loan 80EEA: deductionint. Assessee
First Loan Purchase
Loan Loan 80EE: B0E: Deduction
Loan 80EEB: 80EEA.u/s First
deduction should should Assessee: of deduction amountshould should Deduction:Deduction of isassessee Assessee: of
Individual
should of
Deduction: Deduction deduction Duty Deduction: Deduction
is
a Deduction: Interest
under does does price legalallowed
be be
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should nofsanctioned to faken
of [Link]. paying
starts on
taken should any sanctioned house in
loan
if
Interest loan
other for own of Max. in own
Max. respect in house from respect 35 from respect
for
from be any be any lakhs. taken
any
[Link] banks 150,000 (other claimed upto higher
banks. 1,50,000 claimed
interest property of
residential between bank of for amount
of 50 or interest
interest or thinterest
an the education
or u/s u/s 1/4/2016 Lakhs. financial foraperiod
financial 1/4/2019
here house financial
should covered 24(b) house education
9
24(b) on
on then on housing in
of on to institution
Electric of property to be
irstitution u/housing
s India
institutions house deduction
31/3/2022. upto 80E)
house th31/3/2017.
e self.s
of of8
loan
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loan property dat e consecutive abroad or
for spouse,
including shall the lakhs. for sanction
of acquisition
(EV) acquisition [any
and not date (up children
years
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NBFC. of
war
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interest in of student
whomfor
respect loan. from XI
&remaining
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year
the People!
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rCA
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gurudwara,Donation institution
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promoting -Limited Drought
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interest People! Jes,
deduction should
Promoting anyrenovationHousing ComparyFamily Govt. Assistance for Fund All underallowed be
Public development Relief etc. fund SamitiEarthquake
&
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sonctioned
or or control Lieutenant fund Assessee
development Planring Local fund fund any for
Charitablechurch, or
minority to and
Indian Authority of Relief other any
repair of Relief Drug between
etc. infrastructure
community Trust authority of Olympics
(F) Unlimited
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temple,
approved
or
(Care Relief
1/her4e/2019
Association
in (T) (H) Fund) then
India for fund to
(M)
sports Institution
(0)
deduct31/i3on/2023.
in or
India,
any shall
other |
not
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50% Unlimited
100% be
allowed Deduction

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Limited
100% from
10GTI
in i
respect

of

>Eligible
Assessee:
Individual 1.
Under fro10
|Note:AmountEligible If Eligible Sec Adjusted
Amount Assessee Amount of Sec Donations Notes:deductions
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Al()
l GTI
Sec
donation (ii) ?5000
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. Deduction
80GGB/80GGC:
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O. DeductmGTiIon
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of
or
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amount GTI= his Paid of Rent paid under
L112,TCG Adjusted
spOuse Adj. pai d in category,
80GGB All GTI- - kind this
if Donation more is 107% GTI (except
806)
donation 100% assessees for
100% of arsection e Total
All or of House
Indian - scientific minor Adj . not 112A
of than2,000 of deductions income
to
Property eligible is
madedonation Political donation(except child GTI rot d is
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in or allowed
u/ c for 111A) of
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should or should not
or rural (Except donaticn
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Ary bedevelopmert not u/s
made income u/s cwn e05 rode XX
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Trust other in
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under
than is
the at more
aCA Cash. the
PGBP)
head than
place
of 2000.
his
duty. Peaple Yes
 Deduction 1.
2.
2. 1. [Link]. AmountEligible Secdeduction DeductionIncome deduction
ar CA Deduction 240/150 If
assessee
be Notes: 8 8 Additional
|8 8
new job E.g. - during Additional
In
submit
employee
notified
an EmployeeEmployee
in footwear EmployeeEmployee employees
case
Emoluments
& There case
Suppose
15
In
Assessee:
80JJAA:
of "Part-C
based
shall u/s
People! yes
Income
entitled days, of new is of employee Deduction:Deduction u/s
upto under
for does employedor employees
whose Neemployees
w total no
existing 10AA/chapter be Based
80JJAA
date inaccordance
is whom not
leather joined increase
paid Any
deduction
in allowed,
this for employed
next Business employee General
emoluments> otherwise business, cost: 30% law Deductions
given
section
deduction participate products do then Assessee in so
year, the fo r not joined, in practically
with the Total ofrespect AMT u/c only
u/s entire deduction - points
during
he less include Emoluments as
on than
alcbyTotal Additional VI-A if VI
allowed
44AB.
ofshall the then than then Additional emolument engaged of also the -A"VI-A [
contribution RPF. in 31/3/24 regarding
307% be Py provisiorn 25,000
there number Employment applyallowed"Part-CreturnPart-C
only for 150 240 wil Part
deemed
of less days) pai d be payee employee employee in if shall
32 if days p.m. allowed wil were paid Business is -C
additional
BOA of of assessee on means filed Income
than the is or be100employees. expenditure NOT Income
to in payable cheque, orcost of
is 240/150
have Employees pai d no cost & upt o
audited P.Y. on
deduction, and payable to new claimed deduction Based
be
employee by emolument (deduction in
been (in to during DD shall whom
employeesS allowed,
th e
Govt
case employees or but Deductions
due respect
employed days,
of be to
PF& under P. Y. ECS. Sec deduction
assessee cost of suppose NiAdditional
l, for 44AB it date if
covered
but paid 24-25, is NOT of
in Mis c. manufacture it 3 included of
the in isEmployees employed to consecutive certain
and next. employed
nexy Provision 5 in 15 applies u/s u/sfilingclaimed peduction 10
[Link] above employees 80JJAA 80-IA of fromGTI
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year. Pension
scheme during example income return
for Act, of return.
report
According\y,
years) to
a apparel emplowe
period 1952. that left 80RRB.
shoulo if the
P.y. 20 -
of or

>Amount
Deduction:Eligible
of fro10
mGTI
tendhe ofSuch Note Sec Eligible Amount Sec Assessee:
Eligible
Deduction: Eligible
Amount of Sec80TTBu/s
Note: Deduction:
AmountEligible
of Sec
80RRB: 80QQB: Deduction
royalty
Lower is (Gi) Individual
of Ass
80TTA: for
80TTB: Deduction Assessee: Whichever Royalty:
Assessee: Interest
Assessee: 80QQB
P.Y. Whichever Lower isreceived
Royalty
3,00,000
Max.7(ii) (a) Royalty Royalty
Deduction:
Lower50,000
Whichever isMax.(ii)
Whichever isMax.(iAmount
Lower10,000 ) () Interest amounf
Interest or 3,00,000
In Max.
received
Royalty
Eligible
time & Resident from Resident from
Interest Amount under Individual 80RRB: case
Resident is
on this on brought
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133 [Link] Bank, outside XX XX scientific
XX XX XX
XX to XX XX 15%
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India, of
& Bank value nature
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office Post - deduction Book
citizen CA"] within
office sold

anwar
BoranaCA eligible 6 is
monthsallowed

deduction
for
from only People! Ye6
the if
 > 2. 1. Export
Profit 2 LIn
ar CA the If Deemed Ifmis-utilised PaMAmount A/c SalesNotes:
Income foreign
**Export PGBP
Next5AYsFor For Deduction
31,03.2021.
uptoDeduct
upto ion things Sec
Amount
For of
computing 10AA:
Peaple! yes
Reserve
period Reserve maintained
put
& proceeds
currency
of Next First 31.3 .2 020 or
ofhas has
credited
to Turnover
unit
5 5 under computer Special
or located AY's AYs Total
3
years. not been un-utilised
use by within
deemed and this
been
within assessee
SEZ
to
means in beginsect Provisions
s ion softwareincome
utilized SEZ
to
3 months 6 the in of for
utilized then Re-invest
years outside have manufacture is
any an
for
deduction consideration available newly
non-specified till from
India
been from X Whichever credited
507% |Allowance
lower is A/c Amount
Reserve undertaking, SEZ
alowance
the
the
received end TurnoverTurnover
TotalExport ** of oronly establish
expiry claimed with
to 507% 1007% production the if
OR debited
end of in Export which units
purpose: reserve approval in PY
respect
of of India or SEZ
earlier P.Y. of SEZ
time time Profit to of of begins SEZ
inA/c of if export of Reinvestment Export
P&L
Export unit
limit: of shall which
RBI . suchpermitted articles
received thashe to
the should A/cProfitProfit
be manufacturing
ofyear amount brought
the taxablereserve & or
in be by things
year which utilized is RBI.
aswas credited into
immediately
wrongly PGBP. India approvalor
necessary or Deduction
from
GTI
created. for providing produce

following
utilized.
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acquiring

amount
If separate a convertible
new
to in
services : article

or
10

3
7Assessee
8 6. 5. 4 fro10
mGTI
Exceptions:
b a)
P&M and
taxable
hence
In come Deduction export
licenses.
of service Total providing Export Deduction
Duty
P&M 20%
used
under from out
Total sid e T/0 drawbackand T/O
Imported ofbusiness
in shall do u/s T/O shall servicedoes
not the cash 10AA which T/O India. not
total obTain outside not
constitute head
Compensatory includes include profit
available is
from
value should
report
a PGBP not Further include
freight, India.
on
of profit but receivedExport sale
outside P&M be after it
New: from support, shall offreight,
Further
not daiming telecomnurication import
India
used an"derivedeligible inT/O not
in CA convertible and teleommunicotion
undertaking
for and from" duty Domestic
incude entitlemert erport
for deduction dll
the furrísh it drawbock T/0
5 deductiono CCS,
first business. foreign
shdll
T/O charges,
DD licenses.
time can before and u/cVI-A echangetandii and not
be calculation sale charges,
shalsecond insurance
profit p include
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be entitlement
import
treated hand due on Iraurance
eperses
cAsh
as GTI sale for or
incudes experses
date these
of compensctory
as specified
44AB.u/s import
ariaCA Nen are even
or
ancillary
PåM. licersesare
profit
that
ertitiement
portfion
proiding suort, Peaple!
for
 People Deduct
from iGTon 10
Alternate Minimum Tax (AMT)
AMTis applicable to All assessee except Company.
Sec 115JG Income tax payable by any person, higher of
0) Income Tax payable as per Normal Provision of Income Tax XXX
() 185% of Adjusted Total income (ATI) XXX
(Surcharge (if applicable) +4%]

Notesi
[Link] of ATI
Total Income (NTI) as per Normal provision of Income Tax XX
Add () Deduction u/s 10AA (SEZ) XX
() Deduetion u/s 35AD (14 Business) XX
(ii) Deduction u/c VI-A (80JJAA,80QQB &8ORR8) XX
XX
Less: Depreciation allowable as per Sec, 32 assuming that
deduction
@intermediatenotess
u/s 35AD was not allowed on the assets on
which deduction u/s 35AD
is claimed
XX
ATI
XX

2. AMT shall not be applicable if ATI

(Adjusted Total income) is up to 20 lakhs in case of
HUF/AOP/BOI/Artificial Judicial
The provision of AMT apply only if
Person. Individud
80QQB or 80RRB assessee is claiming deduction u/s 10AA, 35AD,
3. AMT not
8OJJAA,
applicable if assessee follow section 115BAC
>Sec 115JD AMT Credit
a) If AMT> Normal
Income toax then excess shall be
b) AMT redit can be C/F
and set off
treated as AMT credit.
for 15
c) Credit can be
set-off in the year in which years.
d) The credit allowed to be
set off will be
reqular tax is more than AMT.
Income tax computed under normal restricted to the difference between the
e) Assessee can claim provision of IT &the AMT. reqular
AMT credit in such
subsequent P.Y. subsequecnt P.Y. even if AMT is not applicable in

CA Bhaiwar orate 136

@intermediatenotess
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 12 Return Filing and yes
Self Assessment People!
Sec 139(1): Filing of Return of Income (ROT) (Normal
return
A. For Company &Partnership Firm (includina LLP)- Return filing is compulsory.
B. For other Assessee - If GTI (before claiminoexemption u/s 54,54B, 54D, 54EC,54F) more fhan
Basic exemption, thenreturn filing is compulsory.
C. Following persons Compulsory required to file the return.
1. Resident Individual - Resident (other than Rbut NOR)

A B
Beneficial owner of any asset (including Beneficiary of any asset
financial interest)located outside India (including financial interest)
located outside India
has signing authority inany Account
outside India

Note: If income already included in the income of person "A" then "B" not required to file ROI.
v Beneficial Owner -Individual providing consideration for the asset directly or indirectly for

@intermediatenotess
the immediate or future benefit for himself or any other person.
/ Beneficiary -Individual deriving benefit from the asset, consideration for which has been
provided by any other person.

2. Person (other than Company and Firm) not covered in above points required to file ROI, if
Assessee has deposited an aggregate amount exceeding 1crore rupees in one or more current
accounts maintained with a bank or a co-operative bank or deposited 50 lakhs or more in one or
more savings accounts.
Assessee has incurred foreign travel expenditure of an aggregate amount exceeding 2 lakhs for
himself or any other person.
Assessee has incurred expenditure of an aggregate amount exceeding 1 lakh towards
consumption of electricity.
> Assessee's total sales, turnover or gross receipts, as the case may be, in the business exceeds
60 lakhs during the PY or total gross receipts in profession exceeds T10 lakhs during the PY.
Assessee' saggregate of TDS and TCS during the PY, is 25,000 or more (in case of senior
citizen 50,000).

157
Compact CA Bhanwar Borana
anwar
orana CA 3. 2. 1.
sustained/incurred. The House Loss following
losses: AsSec exempted
Notes: V
[Link] Sec except Salary.
wife
Nagar Note: oraudited
Person thePersonAssessee Due
can Y per139(3): Partnert lPerson
aw
condition
property be Loss LossSpeculation Loss Business 139(1C): the Company, partners Dates
stipulated/
set-off
losses
from under from
the specified
the business
80,assessee Loss
loss
sec

Return
Government
Central
Haveli spouse
asection
nd
per
As other

such
of
than
under of whose
the any firm,
a
Books than thfurni
requi
other of to of Peoplel Bes
re
e sh Return
It even u/s requirement
filingofmay Govt Daman
does & activity head 5A above law where of firm Filing
unabsorbed
enumerated return if 72(1) required partner
if above
not business loss
"Capital bymay and
individual firm's
Accounts Transfer
of notificationexempt Diu
apply if
filedowning,and u/s to then the
depreciation
to in Gains" u/s 73(2) file
provisions
Books are Pricing
the sec. after the class Incomegovern
ofrequired
158 73A(2) [Link]
of
ROI 80 maintaining u/s return of Audit
due 74(1) person shall
by Accounts
applies
of can date.
upto such Portuguesesectionof to report
the be be
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