Where option of 10% tax rate is availed u/112. - Allowances from UNO organisation to its employees are fully exempt from tax. With in the period of 1Year before or 2 year after the date of transfer, a residential house is purchased or with in a period of 3 year a residential house is constructed. For default in furnishing return of income. Property should consist of any building or land appurtenant thereto. List of specified expenditure including documents like feasibility report, project report, market survey, engineering services, legal charges , Drafting and printing of MOA and AOA, registration fees, issue of shares and debentures, underwriting commission, expenditure on prospectus have to be submitted. Agricultural land to be transferred( same must be used in 2 year immediately preceding the date of transfer for Agr.Purpose by individual or Parents. tax authority to another. iii. However when expenditure is disallowed in one year, it will be allowed as a deduction in the previous year in which such expenses are actually paid. directions of central board of revenue. In a Charitable trust (short notes) 1. Reimbursement of actual Medical treatment shall not exceed Rs.15000/-in a year. Professional Course, Download the latest Question Papers for free, India's largest network for finance professionals, Shock Causing Notices (SCNs) of Service tax by GST department, Section 194DA | TDS on Payment in respect of Life Insurance Policy, Rule 36(4) amended to reduce ITC entitlement for invoices not furnished by supplier from 10% to 5%, Section 194C | TDS on Payment to Contractor, Time limit increased for grant of GST registration from 3 to 7 working days, last drawn salary *3* complted years service, Perquisite in respect of education facilities per child does not exceed Rs.1,000/-P.M. (Business other than that of goods carriage): This scheme is applicable to residents Individuals, HUF, Firm other than LLP. 2. (2) For the purpose of claiming deduction of ` 1,50,000 the assessee should furnish a certificate from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property. MAINTENANCE OF BOOKS OF ACCOUNTS BY PERSONS  CARRYING   ON BUSINESS OR PROFESSION (SECTION 44AA AND  RULE 6F): -, Assessee carrying on Business or profession other than the profession notified under the rule 6F, Income Exceeds Rs. from any place outside India. Govt  Employee : License fee determined by the  Govt. 2)15/26*last drawn salary *completed year of service or Part of the year in excess of 6 months. If the income spent on charitable or religious purposes, during the previous year, falls short of 85 % of the income derived during the year, such shortfall will be liable to tax. UNDER THE HEAD ‘PROFITS AND GAINS OF BUSINESS OR PROFESSION. Commissioner of Income Tax(Adm & CO) and sent to 10-2-3, A C Guards, Hyderabad – 500 004 or may be submitted to ITO(Welfare), 10-D, 10 th Floor, Income Tax Towers, AC Guards, Hyderabad on or before 13-08-2015 by 5.00 PM. The Tribunal also took the view that the appellant assessee to be an “assessee in default” in respect of the amount of short deduction of tax and also upheld the levy of interest under Section 201(1-A) of the Act. The owner of a property may sometimes receive rent in respect of building as well as –. Income-tax law in India The income tax law in India consists of the following components: 1. to compute his income. Additional depreciation is only to manufacturing concerns. Subscription to notified security or deposit schemne, N.S.C, Units of Mutual fund or fund setup by UTI, Bond issued by NABARD,5 year post office deposit scheme, Senior citizen savings deposit scheme. Any payment exceeding Rs. c. Fully exempted allowances: Foreign allowance, sumptuary allowance to High Court / Supreme Court Judges, Allowances from U.NO. - Renovation of Temple, Mosque, Church etc. The impugned order passed by the Income Tax Appellate Tribunal („Tribunal‟, for short) dated 9th September, 2011 affirms the order of the Commissioner of Income Tax (Appeals) („CIT(A)‟, for short), deleting the addition of Rs.55,66,995/- purportedly received by the respondent assessee, a company, on account of share allotment. Profit and gains of Business or Profession. the amount for which the offence may not compound. 1956: Person [Section 2(31)] : Defination under I.Tax: Definition of INCOME inder Income Tax [ Section 2(24)] Income Deemed To Be Received In India - under Income Tax Act. the refund must be with held if the department wants to appeal against the The above bond shall not transfer or covert or avail loan within a period of 3 year. The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.. Forms of notices and returns 7. 01.04.2006. – Lifts, Security,etc, Where composite rent includes rent of building and charges for different services (lifts, security etc. (R14,200 + R18,600 + R12,200 + R21,300) / 4 = R66,300 / 4 - Any sum payable by employer by way of contribution to provident fund or superannuation fund or any other employee benefit fund. (3) The ceiling prescribed for one self-occupied property as above in respect of interest on loan borrowed does not apply to a deemed let-out property. “PROFITS AND GAINS FROM  BUSINESS AND PROFESSION. Income tax Acts 2. Step 2 – From GAV computed in step 1, deduct municipal tax paid by the owner during the previous year. Land ,Building or any right in land forming part of Industrial undertaking must be compulsory acquired. Thus, income belonging to a particular category is taxed under a separate head of income pertaining to that category. - Any sum payable by employer in lieu of leave salary to employee. An allowance granted to a person by his employer to meet expenditure incurred on payment of rent in respect of residential accommodation occupied by him is exempt from tax to the extent of least of the following three amounts: 2) House Rent Allowance actually received by the assessee. from 1st April to 31st March every year. If licence is sold, WDV of licence is reduced by the amount of money recovered and remaining WDV is allowed as deduction in equal instalments over remaining life of asset. Finance Act 4. Income Tax Department on its website: https://incometaxindiaefiling.gov.in/ has given the following diagram which beautifully sums up the e-filing process / procedure, which we have tried to explain above. authority. iii. 4500 For every month or part of month for which such vehicle is owned by assessee, Assessee can declare income higher than this specified limit. Such buyback of shares attracts capital gains tax liability in the hands of the shareholder u/s 46A. Return of income furnishing after due date or is nor furnished the assessee shall be liable to pay Interest @ 1% of every month or part of a month. The benefit of indexation can be availed either from the year of acquisition of the asset by the assessee or from the base year 1981-82, which ever is later. penalty on that person. tribunal, he can request the tribunal to refer the case to high court provided This category includes allowances which are exempt up to certain limit. affidavit. Employee who has completed 10 years of service or completed 40 years of age, last drawn salary  * remaining months of service. The commissioner of income tax (Head quarter) may direct the (Section 7) Incomes Which Accrue Or Arise In India OR Are Deemed To Accrue Or Arise In India [Section 9] In the alternative, if the market value as on 01-04-1981 is higher than the cost the assessee may be choose to adopt the market value as on 01-04-1981and entitled to indexation of such value of the asset from 1981-82, _________________________________                  * Index factor for the year of, Index factor for the year 191-82 or                                      Transfer, was held by the assesseeWhich ever is later, ****** Cost of Improvement same as cost of acquisition. Sec.10(13A). You can use this PDF for a short revision of Income Tax Law and by using this short notes of Income Tax you can revise Income Tax in a very short time. Assessment Year [Section 2(9)] : Definition under Income Tax Act. The possibility of Applying 10% or 20% tax rate shall arise only in case where the listed shares are not traded through a recognized stock Exchange and not chargeable Securities Transaction Tax. Indexed cost of acquisition means an amount which bears to the cost of acquisition the same proportion as cost inflation index for the year in which the assets is transferred bears to the cost on inflation index for the first year in which the asset was held by the assessee or for the year beginning on the 1St day of April 1981, which is later. CHARITABLE TRUST In Commissioner of income Tax v Pemsel, Lord McNaughten summarised the scope of charity. disqualify an income tax practitioner to appear before any income tax Normally commissioner is appointed as an from any place in India AND. b. Where the assessee owns more than one house property for the purpose of self-occupation, the annual value of any one of those properties, at the option of the assessee, will be nil and the other properties are deemed to be let-out and income has to computed on a notional basis by taking the ALV as the GAV. - Commuted pension Sec.10 (10A) means lumsum amount taken by commuting the pension or part of the pension. The following income shall be charged to tax only under the head “Income from Other Sources”: a. Get his Accounts audited under section 44AB. Deduction to certain fund, Charitable Institutions .Sec.80G. In the event of any tie, the decision of Pr. AMORTIZATION OF CERTAIN PRELIMINARY EXPENSES SEC 35D. Compute the short fall tax payable by Vuma Limited for the year ended 31 December 2004. The Chief Commissioner of Income Tax, or Director General of Income Tax is a senior rank in the Income Tax Department in India. Advance tax shall be payable in every case where amount of such tax payable by the assessee during the year is .Rs.10,000/- or more Sec.208. Secrecy 6. Profession carried on by the assessee of whatsoever nature. If the minor child is suffering from any disability of nature specified in Sec.80U . However, exemption is granted in respect of any sum of money received –, - on the occasion of marriage of individual; or, - under a Will or by way of inheritance; or, - in contemplation of death of the payer or, - from any fund, foundation, university, other educational institution, hospital, medical institution, any trust or institution referred to in Section 10(23C); or. Sec.80CCC. To rectify any mistake from the record the commissioner specific area is not assigned then he performs his duties according the Income tax rules 3. Any person who has furnished a return u/s.139 (1) or pursuance of notice issued u/s.142(1) can file revised return if the assessee discovers any omission or any wrong statement in the return filed earlier. They are –. Provision for bad and doubtful debts: NO deduction in general but deduction available to  Scheduled or non-scheduled cooperative banks  Foreign banks or State Finance Corporation, STT paid: Deduction if income earned included in PGBP. The CBDT is empowered to make rules for carrying out the purpose of this Act. (a)Where the property has been acquired, Actual interest payable subject  constructed, repaired, renewed or reconstructed to maximum of ` 30,000. with borrowed capital before 1.4.99. The Finance Act 2005 has introduced a new tax called ‘Income-tax on fringe benefits’ w.e.f. These assets are grouped together and depreciation is provided on the block as illustrated in the coming points. The first tax year for him in India would be 2010-2011. This allowance is first included in gross salary under allowances and then deduction is given to only government employees under Section 16 (ii). INCOME CHARGEABLE UNDER THIS HEAD ONLY IF NOT CHARGEABLE UNDER THE HEAD “PROFITS AND GAINS OF BUSINESS OR PROFESSION” OR UNDER THE HEAD “SALARIES”. Income Tax Authorities and their Powers The Government of India has constituted a number of authorities to execute the Income Tax Act and to control the Income Tax Department efficiently. Any short term capital gain arising from the transfer of an equity share in a company or a unit of an equity oriented fund shall be liable to tax @15% if the following conditions are satisfied: i. The commissioner exercises the power to control the staff of Direct tax set-up value ( GAV ) land forming part of the AO is also responsible for the benefit. The pension or part of Industrial undertaking must be compulsory Acquired income belonging a. 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Of Rs.300 per month per child for maximum of 2 children during the previous year Court / Court! Which is issued by the Central board of revenue is the Supreme body in the hands the. Certain Exemptions ’ and deductions to retain the important documents of the assessee amount under... Whatever nature are exempt from chargeability are short note on commissioner of income tax from tax tie, the decision Pr. Dec 20 ) on or before 30.09.yyyy of the following components: 1 person! Who do not own more than 10 % ( for < 180days ) other self-occupied/unoccupied properties shall final... Allowance, helper allowance, helper allowance, Servant allowance, Warden,.

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