SCDL Fourth Semester- Taxation

	Taxation
sl no.	unit 1:definitions under Income Tax Act,1961	pg no.
1	introduction	2
2	definitions under act	2
3	assessment year and previous year	2
4	person	3
5	assessee	3
6	total income	4
7	rates of taxes	5
8	for firms	6
9	for companies	6
10	residential statues	6
11	individual	6
12	resident and ordinarily resident ROR	6
13	basic conditions	7
14	additional conditions resident but not-ordinarily resident RNOR	7
15	nonresident NR	7
16	partnership firms	7
17	company	8
18	incidence of tax and residential status- section 5	8
19	resident and ordinarily resident section 5(1)	8
20	resident but not ordinarily resident section 5(1)	8
21	non-resident	9
22	types of income status	9
23	accrual of income	10
24	income received in India-section 7	10
25	income deemed to be receives in India-section 7	10
26	income which are deemed to accrue or arise in India section 9	11
	unit 2:- Income exempt from tax
1	incomes exempt under section 10 of the act	20
2	agriculture income -section 10(1)	20
3	share of profit of a partner form a firm- section 10(2A)	20
4	interest on securities or bonds held by a non-resident or interest or nonresident external ) account-section 10(4)	20
5	foreign allowance -section 10(7)	20
6	amount received under a life insurance policy-section 10(101)	21
7	interest, premium or bonus on specified investments-section 10(15)	21
8	educational scholarship-section 10(16)	21
9	payment to MPs,MLAs etcsection 10(17)	21
10	pension to gallantry award winners section 10(18)	22
11	family pension under certain circumstances section 10(19)	22
12	property in possession of a former ruler section 10(19A)	22
13	income of a local authority section 10(20)	22
14	income of a specified news agency-section 10(22B)	22
15	income of a professional institutions section 10(23A)	23
16	income of a mutual fund-section 231	23
17	income of a venture capital fund-section 10(23FB)	23
18	income of trade union-section 10(24)	24
19	educational scholarship-section 10(16)	24
20	income of employees state insurance fund section 10(25A)	24
21	capital gain arising from the transfer of units of UTI-section 10(33)	24
22	dividend received from a domestic company-section 10(34)	25
23	some other exemptions	25
24	income from mutual fund section 10(35)	25
25	capital gains due to compulsory acquisition of agricultural lamnd-sectionm10(37)	25
26	long term capital gains from the transfer of securities section 10(38)	25
27	occasional income of gifts-section 10(39)	26
28	newly established undertakings in free trade zones, software technology park etc-section 10A	27
29	free trade zones	27
30	kandla free trade zone	27
31	madras export processing zone	27
32	santacruz electronics export processing zone	27
33	cochin export processing zone	27
34	noida export processing zone	27
35	electronic hardware technology park	27
36	software technology park	28
38	income of 100% export oriented unitssection 10B	29
37	specific income exempt from tax	30
39	income of political party-section 13A	30
40	specific income exempt from tax	30
41	agriculture income	30
42	tax treatment of agriculture income	30
	unit 3:-income from salaries
1	wages	38
2	annuity	38
3	profits in lieu of salary	38
4	section 17(3)	38
5	terminal compensation	39
6	amount fro m unrecognized provident fund or unrecognized superannuation	39
7	amount received under keyman insurance policy	39
8	basis charge section-15	39
9	exceptions	40
10	surrender of salary	40
11	foregoing salary	41
12	place of accrual section 9(1)	41
13	arrears of salary	41
14	basis of accounting	41
15	exempt income	41
16	bonus	42
17	exemptions section 10(5) to 10(14)	42
18	section 10(5):leave travel concession	42
19	family	42
20	section 10(10) gratuity	43
21	government employee	43
22	employees covered by the payment of gratuity Act 1972	43
23	any other employee	44
24	pension section 10(10A)	44
25	uncommitted pension	44
26	commuted pension	44
27	leave salary section 10(10AA)	45
28	retrenchment compensation section 10(10B)	46
29	voluntary retrenchment/separation scheme section 10(10C)	47
30	exemption	47
31	guideline provided in rule 2BA	48
32	provident fund	48
33	types of provident fund	49
34	statutory provident fund	49
35	recognized provident fund	49
36	unrecognized provident fund	49
37	tax treatment	49
38	statutory provident fund	49
39	recognized provident fund	49
40	unrecognized provident fund	49
41	superannuation fund section 10(13)	50
42	house rent allowance HRA	50
43	special allowances-section 10(14)	51
44	allowances that are full taxable	52
45	prerequisites-section 17(2) and rule 3	53
46	employees stock option plan-ESOP	54
47	rent free unfurnished accomodation:section 17(2)(1)rule 3(1)	54
48	hotel accommodation	55
49	furnished accommodation	57
50	accommodation at concession rate-section 17(2)B	57
51	domestic servant	58
52	gas, electric energy water supply for household consumption	58
53	prerequisites in respect of educational facilities	59
54	other fringe benefits or amenities section 17(2)	59
55	interest free or confessional loan made available for employees or any member of his household	59
56	use of movable assets	60
57	transfer of employers movable asset section 17(2)	60
58	medical facility proviso to section 17(2)	60
59	medical facility outside India	61
60	prerequisites exempt from tax	61
61	deductions section 16	62
62	entertainment allowance 16(ii)	62
63	professional tax	62
	unit 4:-income from house property and other sources
1	scope section 22	76
2	related case law	76
3	Chelmsford club V CIT 2002 SC	76
4	essential conditions for taxing income under this head	77
5	deemed ownership under section 27	78
6	transfer to a spouse and child section 27(i)	78
7	holder of an impartial estate section 27(ii)	78
8	members of a cooperative society etc section 27(iii)	78
9	person in possession of property section 27(iia)	78
10	person having right in property for a period not less than 12 ears section (iiib)	78
11	determination of annual value	78
12	actual rent received or receivable	78
13	municipal value	79
14	fair rent of the property	79
15	standard rent	79
16	classification of the house property	81
17	house property which is let out throughout the year	81
18	municipal value	81
19	fair rental value	81
20	property which is let out but remains vacant for whole or part of the year	82
21	self-occupied property	83
22	property which is let out for part of the year and self-occupied for part of the year	83
23	more than one self occupied properties	84
24	deductions from income from house proper under section 24	86
25	computation of income of a property	86
26	deduction under section 24	86
27	inadmissible expenses section 25	87
28	unrealized rent if realized subsequently	87
29	unrealized rent if realized subsequently	87
30	co-ownership-section26	87
31	income from other sources section 56	88
32	deductions from income from other sources	89
33	inadmissible expenses section 58	89
	unit 5:-profit and gains from business and profession
1	expenses allowed as deductions-section 30 to section 37	106
2	rent,rates,repairs, taxes and insurance on building-section 30	106
3	repairs and maintenance of machine ,plant and furniture section 31	106
4	depreciation section 32	107
5	other sections	107
6	other deductions section 36	107
7	general deductions-section 37(1)	108
8	capital expenditure vs. revenue expenditure	190
9	business expenditure	111
10	allowable expenditure	111
11	disallowable expenditure	112
12	expenditure not allowed as deductions	112
13	section 40a	112
14	section 40b	113
15	section 40A2	113
16	if the assessee is an individual	113
17	if the assessee is a company	114
18	if the assessee is a firm	114
19	meaning of substantial interest	114
20	section 40A(3)	115
21	section 40A(7)	115
22	section 43B	115
23	allowability of certain expenditure	117
24	computation of profits from business and profession	118
25	profits as per profit and loss account	118
	unit 6:-Capital gains
1	charging section-section 45	160
2	capital asset	160
3	short term/ long term capital asset	161
4	period of holding-the period of holding in respect of capital assets is determined as follows	161
5	period of holding in case of shares or securities	161
6	transaction not regarded as transfer	163
7	from the assessment year 2008-09	165
8	previous ear in which capital gains are chargeable to tax	168
9	transfer of capital asset section 2(47)	169
10	calculation of capital gains-section 48	170
11	cost of acquisition	171
12	normal cost of acquisition -section 49(1)	173
13	cost of inflation index or indexed cost of acquisition	173
14	cost of improvement or indexed cost of improvement	176
15	deduction from capital gains	178
16	capital gain from the transfer of residential house property-section 54	178
17	capital gain account scheme 1988	178
18	capital gains from transfer of agricultural land section 54b	179
19	capital gains if invested in certain bonds-section 54EC	181
20	capital gains arising from transfer of certain securities/ units section 54 ED	182
21	capital gains on the transfer of a long term capital asset other than a house property	183
22	capital gain	184
	unit 7:-Deductions from total income
1	basic rules for claiming the deduction	198
2	deduction s general	198
3	deduction in respect of life insurance premium, deferred annuity etc.section 80c	198
4	contribution to certain pension funds-section 80ccc	202
5	contribution to certain pension scheme of central government-section 80CCD	202
6	payment of medical insurance premium-section 80D	203
7	maintenance including medical treatment of dependents section 80DD	203
8	qualifying sum	204
9	medical treatment etc.section 80DDB	204
10	repayment of loan taken for higher education section 80E	205
11	donations paid section 80G	205
12	rent paid section 80GG	209
13	donations for scientific research or rural development section 80GGA	211
14	profits and gains from bio-degradable waste section80JJA	212
15	deduction in respect of employment of new workmen section 80JJAA	213
16	income of offshore banking units section 80LA	213
17	income of a person with disability section 80U	214
18	profits from infrastructural activity section 80JA	215
19	profits and gains from certain industrial undertakings other than infrastructure section 801B	218
20	industrial undertaking	219
21	operation of ship	220
22	hotel industry	220
23	company engaged in industrial and scientific research development	221
24	mineral oils and refining of mineral oil	221
25	developing and building housing projects	221
26	multiplex theatres	222
27	convention centre	222
28	integrated handling, storage and transportation of food grains or processing, preservation and packing of fruits or vegetables on or after1.04.2001	223
29	operating and maintaining a hospital in rural areas	223
	unit 8:-Tax deducted at source, interest, rebates and relief
1	tax deductions at source-TDS	230
2	payment of salary sec.192	231
3	computation of salary for the purpose of tax deduction	231
4	house rent allowance	231
5	deductions	232
6	rounding off	232
7	tax deduction at source from interest on securities-section 193	234
8	securities not subject to tax deduction	234
9	payment of salary sec.192	234
10	payment without tax deduction or with lower tax deduction	235
11	regimental fund	236
12	tax deduction at source from interest other than interest on securities section 194A	236
13	interest not subject to tax deduction	237
14	tax deduction at source from winnings from lotteries or crossword puzzles section 194B	238
15	tax deduction at source from winnings from horse races section 194BB	239
16	tax deduction at source from payment to contractors or sub0contractors-section 194C	239
17	specified person	240
18	payment without tax deducted under section 194C	241
19	tax deduction at source	241
20	from insurance commission section 194D	241
21	tax deduction at source from payment to nonresident sportsmen or sports association -section 194E	242
22	tax deduction at source from payment in respect of national savings scheme section 194EE	243
23	tax deduction at source from payment in respect of repurchase of units of mutual funds or UTI-section 194$E	244
24	tax deduction at source from commission or brokerage section 194H	244
25	when commission is retained by agent	244
26	tax deduction at source from rent-section 194-I	244
27	rent	245
28	tax deduction at source from payment of fees for professional or technical services	246
29	meaning of professional technical services	246
30	failure to deduct the tax at source	247
31	online tax accounting system	247
32	nature of default penalty	247
33	tax deduction account number (TAN)-section 203 A	248
34	advance tax	248
35	when the tax is payable	248
36	failure to pay the advance tax	249
37	self-assessment tax	249
38	interest	249
39	interest payable for default in furnishing return of income.sec 234 A	249
40	when interest is paid on the income determined under section 143(3) or 144 and interest for delayed filling of return is already paid under section 104 A	250
41	interest for default in payment of advance tax. Section 234 B	250
42	if tax is paid on or after April 1 of the assessment year	251
43	interest for deferment of advance tax	253
44	in case of non-company assessee	254
45	short payment of advance tax in case of capital gains or casual income	255
46	interest on excess refund. section 234 D,applicable from June 1,2003	255
47	interest for making late payment of income tax. section 220	256
48	reduction or waiver of interest by CCIT/CIT	256
49	cancellation of assessment order	256
50	assessment original made varied or set aside but restored on the further appeal	256
51	interest for failure to deduct and pay tax at source. section 201(1A)	257
52	rebate in respect of securities transaction tax	257
53	rebates to a member of an association of persons. section 86	257
54	relief for arrears of salary. section 89(1)	258
55	relief for arrears of salary or in advance salary.rule 21 A(2)	258
56	computation of relief in respect of gratuity. rule 21A(3)	258
57	computation of relief in respect of compensation on termination of employment rule 21 A (4)	259
58	computation of relief in respect of payments in commutation of pension rule21A(S)	259
59	computation of relief in respect of other payments 21A(6)	259
60	steps to determine tax liability	260
	unit 9:- Assessment and procedures
1	tax authorities. section 116	266
2	powers of income tax officers-section 131 to 138	267
3	power of income -tax authorities regarding discovery, production of evidence etc.section 131	267
4	search and seizure -section 132	268
5	power to requisition books of account etc.section 132 A	269
6	provisions relating to retention of books etc ,seized during the course of search	269
7	retention	269
8	power to call for information section 133	269
9	survey -section 133A	270
10	power of income-tax authority to collect certain information (door to door survey) section 133B	271
11	power to make enquiry-section 135	272
12	proceedings to be judicial proceedings. section 136	272
13	power to disclose information regarding assesses. section 138	272
14	due dates'	273
15	filing of blank return of income b salaried employees section 139(1A)	273
16	filing of return in electronic form .section 139(1B)	273
17	loss return section 139(3)	274
18	tax authorities. section 116	274
19	return by trusts. section 139(4A)	274
20	returns by political parties. section 139(4B)	274
21	returns by certain authorities/institutions. section 139(4C)	275
22	revised return.section 139(5)	275
23	defective return. section 139(9)	276
24	return by whom to be signed. section 140	277
25	enquiry before assessement. section 142	278
26	enquiry	279
27	special audit	279
28	opportunity	279
29	estimation b valuation officer in certain cases. section 142A	279
30	assessment. section 143	279
31	best judgment assessment. section 144	280
32	assessment, reassessment and recompilation .section 147	281
33	basis	281
34	circumstances when income can be paid to escape assessment	281
35	circumstances when income can be paid to escape assessment	281
36	issue of notice where income has escaped assessment .section 148	282
37	time limit for completion of assessment and reassessment. section 153	282
38	assessment of income of an other person .section 153 ©	282
39	appeals to high court. section 260A	283
40	revision by commissioner of income tax section 263 & 264	284
41	revision of other orders. section 264	285
	unit 10:- taxation by partnership firms
1	rate of tax in case of a firm .section 167 A	290
2	assessment as a firm .section 184	290
3	assessment when section 184 is not complied with section 185	291
4	change in constitution .section 187	291
5	succession of firms. section 188	291
6	joint and several liabilities of firms. section 188A	22
7	dissolution of firms. section 189	292
8	computation of tax liability of partnership firm	293
9	losses incurred by the firm	294
	unit 11:-taxation of companies
1	types of companies	306
2	section2(17) "company" means	36
3	section 2(18) company in which the public are substantial interested	307
4	section 2(22A) domestic company means	308
5	section 2(23A) foreign company	308
6	section 2(26) Indian company	308
7	concept of amalgamation	309
8	concept of demerger	310
9	losses in case of closely held company .section 79]	312
10	exceptions	312
11	taxation of companies	313
12	minimum alternate tax	313
13	the book profit computation	314
14	applicability of section 115JB to foreign companies	315
15	credit for tax paid under MAT section 115JAA	316
16	report of a chartered accountants 115JB	317
17	levy of interest u/s 234B and 234C with reference to tax on book profit	317
18	amount of loss and depreciation to be carried forward	317
19	capital gains part of book profit	318
	unit 12:- set off and carry forward of losses
1	set -off losses	326
2	inter source adjustment. section 70	326
3	inter head adjustment- section 71	326
4	deemed income	329
5	cash credit-section 68	329
6	unexplained investment-section 69	329
7	unexplained money jewellery etc-section 69 A	329
8	unexplained expenditure-section 69 C	329
9	investment not fully disclosed. section 69B	330
10	an amount borrowed repaid on hundi-section 69D	330
11	carry forward of losses	332
12	loss under the head "income from house properties	333
13	loss from speculation business	333
14	loss from non speculative business	333
	unit 13:- tax audit
1	form 3CD	344
2	general information- clause no.1 to clause no.8	345
3	maintenance of accounts section 44AA-clause no.9	345
4	presumptive profits. Clause no.10	347
5	section 44AD business of civil construction	347
6	section 44AE business of piling, hiring or leasing goods carriages	348
7	section 44AE- retail business	348
8	method of accounting-section 145-clause no.11	349
9	valuation of closing stock-section 145 A. clause no.12	350
10	amounts non credited to profit and loss account-clause no,13	350
11	depreciation - clause no.14	350
12	amounts admissible under various section-clause no.15	351
13	section 33AB tea or coffee or rubber development account	351
14	section 33ABA	352
15	section 35	353
16	section 35AC	354
17	section 35CCA	354
18	section 35D	354
19	section 35E	355
20	amounts debited to profit and loss account clause no.17	356
21	payments made to specified persons. clause no.18	357
22	deemed profits. clause no.19	357
23	profits chargeable to tax under section 41 clause no 20	357
24	deduction on actual basis section 43 B -clause no.21	358
25	details of any loans or deposits borrowed or repaid section 269SS/ 269T- clause no.24	359
26	brought forward losses or depreciation- clause no 25	360
27	deductions under chapter VI-A-clause no.26	360
28	tax deducted at source. clause no.27	360
29	quantitative details- clause no 28	360
30	cost audit report- clause no.30	360
31	accounting ratios- clause no.32	361