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'Assessments' Under Income Tax Act. 1961.

[A] ‘Assessment’ of “Agricultural Income

1.         Need for Assessment of Agricultural Income


2.         ‘DEFINITION’ Of Agricultural Income


3.         Tests To Determine Agricultural Income

Test  (A) —Income derived from land

Test (B)—Land is used for agricultural purposes

Test (C)—Land is situated in India


4.         Types Of Agricultural Income

1.         Any income received as rent or revenue from agricultural land

2.         Income derived from Agriculture

3.         Any income accruing to the person by the performance of any process to render the produce marketable

4.         Any income received by the person by the sale of produce raised or received as rent-in-kind

5.         Income from buildings used for agriculture


5.         Partly Agricultural and Partly Non-agricultural Income

1. Rule 7—General Rule [Applicable to all except Tea, Coffee and Rubber]

2. Meaning of ‘Market Value’ [Rule 7(2)].         

3. Rule 7A—Growing and manufacturing of Rubber in India

4. Rule 7B—Growing and manufacturing of coffee in India

a. Case [ I ] .If coffee is grown and cured by seller [Rule 7B(I)]

b. Case [ II ] If coffee is grown, cured, roasted and grinded by the seller with or without mixing chicory or other flavouring ingredients, [Rule 7B(IA)]

5. Rule 8—Growing and manufacturing of Tea in India



6.         Illustrations Of Agricultural Incomes


7.         Illustrations Of Non-Agricultural Incomes


8.         Assessment Of Agricultural Income

What to Integrate?

When to Integrate?

When not to Integrate?

How to Integrate?

[B] ‘Assessment’ of “Individual

1. Income received from different institutions

1.         As a member of Hindu Undivided Family.

2.         Income received as share from AOP.

3.         As a partner of firm assessed as firm assessed u/s 184.

4.         Share of income from firm assessed u/s 185.

5.         As a shareholder of a company.

2. Incomes of other persons to be included in the Total Income of an individual

  1. Transfer of income without transfer of asset.

  2. Revocable transfer of assets.

  3. Income of a minor child.

  4. Income from assets transferred to the spouse, daughter-in-law by an individual

  5. Income from the assets transferred by an individual

  6. Share of income arising to spouse for being member of a trust or to minor child who is beneficiary under a trust.

3. Computation Of Tax Liability


[C] ‘Assessments’ OF “HUF (Hindu Undivided Family)”

Meaning of Assessment of HUF

1.         Schools of Hindu Law

Mitakshara School.

Dayabhaga School


2.         Residence of H.UF.

3.         Assessment of Hindu Undivided Family

4.         Partition of Hindu Undivided Family (Section 171)

Total Partition.

Partial Partition.


5.         Assessment on Partition

            Income not treated as family income

            Individual Income or Family Income


[D] ‘Assessment’ Of “FIRMS


1.         What Is Partnership ?


1. Which firm is to be assessed as FIRM ? [Section 184]

2. Instrument of partnership

3. When instrument of partnership is to be submitted?

4. Change in Constitution?

5. Meaning of Change in Constitution [Section 187]

6. Succession of One Firm by Another Firm (Sec. 188)

7. Liability of partners for tax payable by firm [Section 188A]

8. Firm Dissolved or Business Discontinued

9. Book Profit


2.        ASSESSMENT OF FIRM U/S 184 [which fulfils conditions of Section 184]

[A1]     Computation of firm’s business income :

[A2]     Limits on payment of remuneration to partners [Section 40(b)]

[A3]     Computation of Total Income of a FIRM

[A4]     Computation of firm’s Tax

[A5]     Treatment of Share of Income from firm

[A6]     Treatment of remuneration and interest received from firm


3.        ASSESSMENT OF FIRM U/S 185 [Assessment when Section 184 not complied with]

I.          Computation of business income

II.         Computation of total income

III.        Computation of firm’s Tax

IV.       Treatment of Share of Income from firm

V.        Treatment of remuneration and interest received from firm


[E] ‘Assessment’ Of “Association Of Person(AOP)


1.         Computation of AOP’s Business Income


2.         Computation of AOP’s Total income


3.         Rates Of Tax For  PFAOP/AOP  [u/s 167B]

A.        Where shares of members of PFAOP/AOP are not known or are indeterminate:

B.        Where shares of members of PFAOP/AOP are known or are determinate:


4.         Allocation Of P.F.A.O.P’s Total Income [Section 67A]


5.         Treatment of Share of Income Received By Members Of P.F.A.O.P.


6.         Rebate of Tax u/s 86


[F] ‘Assessment’ of “Companies

1.         Company Taxation


2.         Important Definitions

[A]       Person [Section 2(3 1)]

[B]       Company [Section 2(17)]

[C]       A person having substantial interest in the company [Section 2(32)]

[D]       Principal Officer [Section 2(35)]


3.         Types Of Companies

            1. Indian Company [Section 2(26)]

2. Company in which public are substantially interested [Section     2(18)]

3. Widely Held Company

4. Closely held Company

5. Domestic Company [Section 2(22A)]

6. Meaning of “the prescribed arrangement for declaration and payment of dividends within India” (Rule 27)

7. Foreign Company [Section 2(23A)]

8. Investment Company [Section 109 (ii)(i)]

9. Consultancy Service Company

10. Trading Company [Section 109(iia)]

11. Banking Company


4.         Residential Status Of A Company [Section 6(4)]

            (a) Resident Companies [Section 6(3)]

(b) Non Resident [Section 2(30)]


5.         Incidence Of Tax—Scope Of Total Income

            A. Resident : U/s 5(1)

B. Non Resident. U/s 5(2)


6.         Types of incomes

1. Income received in India

2. Deemed to be received in India

3. Income accruing or arising in India

4. Income deemed to accrue or arise in India

5. Any income accruing and received outside India

6. Past Untaxed Income


7.         Computation Of Gross Total Income Of A Company

            1. Head wise calculation

            2. Agricultural Income of a Company

            Table - Splitting Tip Of Composite Income In Certain Specified Cases


8.         Set off and Carry Forward of Losses of Companies


9.         Carry Forward of Losses

            1. House property

            2. Profits and gains of Business or Profession

            3. Loss under the head capital gains

            4. Other sources


10.       Special Provisions Regarding Losses Relating To Companies Only

            Accumulated Loss

            Unabsorbed Depreciation


11.       Carry forward and Set-off losses of certain companies [Section 79]


12.       Deductions Out Of Gross Total Income


13.       Special provision for payment of income tax by certain companies or minimum alternate tax (MAT) on companies [Section 115JB)

Credit of tax paid under mat [Section 115JAA (la)]

Necessity of preparing Profit & Loss Account in accordance with the provisions of Companies Act, 1956

Points to be kept in mind while preparing Annual Accounts by the Companies


14.       Calculation of Book Profits [Explanation to Sec. 115JB(2)]


15.       Explanation of Certain Items of Statutory Additions:

            (a)       Income tax paid or payable or any provision thereof

            (b)       Transfer to any reserve             

            (c)        Provisions for unascertained liabilities

(d)       An ascertained liability      

(e)       An unascertained liability


16.       Treatment of Certain Statutory Deductions


(i)         Withdrawal from any Reserve or Provision [ Section 11 5JB(2)(i) (explanation)]

(ii)        Case A. If reserve was created before 1-4-97

(iii)       Case B. (1) If reserve was created on or after 1-4-97

(iv)       B/F loss or Unabsorbed depreciation

(v)        MAT Provisions not to affect c/f & set off provision provided under Income Tax Act.

(vi)       Furnishing of report from Chartered Accountant [Section 115JB(4)]

17. Dividend Tax—Special Provisions Relating To Tax On Distributed Profits Of Domestic Companies

1. Tax on distributed profits of companies [Section 115-0]

2. Treatment of dividend received by a domestic company from its subsidiary company [Section 115-O(1A) [Inserted by the Finance Act, 2008, with retrospective effect from Assessment Year 2008-09]

3. Responsibility to deposit tax

4. Final payment

5. No deduction

6. Interest payable for non-payment of tax by domestic companies [Section 115P )

7. Assessee in default [Section 115Q]


18.       Credit of Tax paid under MAT [Section 115JAA(1A)]

1. Amount of Tax Credit

2. Year in which tax credit shall be available [Section 115JAA(4)]

3. Period for which tax Credit is available [Section 115JAA(3A)]

4. Increase/Decrease of Tax Credit

[G] ‘Assessment’ of “Co-operative Societies

1.         Meaning & Definition - Co-operative Societies

            Co-operative Society—Definition

            Urban Consumer’s Co-operative Society

2.         Deductions from Total Income

3.         Concession u/s 27(11,) : Co-operative Housing Society 

            Other Deductions

[H] ‘Assessment’ in “Special Cases


1.         Tax Liability on Income on which no Tax is Payable [Section 110]


2.         Tax on Accumulated Balance of Recognised Provident Fund [Section 111]

[A]       Tax On Capital Gains :

A1.      Short Term Capital Assets [Section 111A]

                        A2.      Long Term Capital Gain [Section 112]


3.         Tax on Dividends, Royalty and Technical Service Fee in case of Foreign Companies [Section 115A]


4.         Tax on Income by way of Income From Royalty Received Under an Agreement entered into on or after 1-6-2005 [Section 115A(ii)AA ]


5.         Tax on income by way of fees for technical servives [Section 115A(b)BB)]


6.         Amendment in Section 115A relating to tax on dividends etc.


7.         Tax on income from capital gain on sale of units purchased in foreign currency [Section 115AB]


8.         Tax on Capital Gain from sale of Bonds or GDRs purchased in foreign currency [Section 115AC]


9.         Tax on income of Global Depository Receipts purchased in foreign currency or capital gain on their transfer [Section 115ACA]


10.       Tax on income of Foreign Institutional Investors from securities or Capital gain on transfer of securities [Section 115AD]


11.       Tax on Gain from life insurance business [Section 115B]


12.       Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting [Section 115BB]


13.       Tax on Non-resident sportsmen or sports association [Section 115BBA]


14.       Tax on Non-Residents [Section 115C to 115-I ]

1.         Computation of total income of a non-resident [Section 115D ]

2.         Tax on investment income and long-term capital gains [Sect/on 115E ]

3.         No tax on capital gain on transfer of foreign exchange assets [Section 115F]

4.         Return of income not to be filed [Section 115G ]

5.         Continuance of benefit even after becoming Resident [Section 115H]

6.         Option to assessee [Section 115-I]

15.        Specials provision for payment of tax by certain companies [Section 115JB ]


16.     Special Provisions Relating To Tax On Distributed Profits [Section 115-O ]

            C1.      Tax on distributed profits of companies

C2.      Responsibility to deposit tax

C3.      Final payment

C4.      No deduction

C5.      Interest on non-payment of tax [Section 115P ]

C6.      Tax on distributed income of Mutual Funds [Section 115R]


[I] ‘Assessment’ of “Fringe Benefits

1.     Fringe Benefit Tax—An Introduction


2.         Rationale And Meaning Of ‘Fringe Benefits Tax’


3.         Perquisites taxable in the hands of employees v/s Fringe Benefits Tax

            (A) Perquisites Taxable in the hands of Employees

            (B) Perquisites Liable to FBT


4.         Feature Of Fringe Benefits Tax

            3.         Chargeable on specified fringe benefits. Section 1 15WB(1)

4.         Valuation of Fringe benefits

5.         Rate of FBT

6.         FBI is a presumptive Tax

7.         FBT is not an allowed business expense          

8.         FBT and MAT

9.         FBT in addition to Income Tax.

10.       Return of Fringe Benefits


5.         Meaning Of Certain Expressions

            Definitions [Section 115W]


6.         Basis Of Charge Of Tax On Fringe Benefits

6.1.      Charge of fringe benefit tax [Section 115WA ]


7.         Fringe Benefits [Section 115WB]


8.         Some Examples of Fringe Benefits


9.         Some Examples Of Benefits Which Are Not Fringe Benefits


10.         Value Of Fringe Benefits [Section-115WC]


11.       Advance Tax In Respect Of Fringe Benefits

12.       Return of fringe benefits [Section 115WD]

13.       Assessment of fringe benefits [Section 115WE]

14.       Best judgment assessment [Section 115WF ]

15.       Time limit for completion of assessment u/s 115WF—amendment in Section 153

16.       Fringe benefits escaping assessment [Section 115WG]

17.       Issue of notice where fringe benefits have escaped assessment [Section 115WH]

18.       Payment of fringe benefit tax [Section 115WI ]

19.       Advance tax in respect of fringe benefits [Section 115WJ ]

20.       Interest for default in furnishing return of fringe benefits [Section 115WK]

21.       Computation of interest u/s 115WK—Amendment in [ Section 140A(1A)]

22.       Claim of refund under fringe benefit tax [Section 238(1A)]

23.       Period within which refund of tax paid under fringe benefits tax can be claimed [Section 239(2)]

24.       Interest on refund under fringe benefit tax [Section 244A(1) and (3)]

25.       Appeal to commissioner (appeals) [Section 244A(1)(aa)]

26.       Penalty for non complying with the notice [Section 271(1)(b) and (d)]

27.       Penalty for failure to furnish return of fringe benefits [Section 271FB]

28.       Penalty for non-furnishing of quarterly return u/s 206(a) [Section 272a(2)]

29.       Prosecution for not furnishing of return u/s 115WD(1) or u/s 11WH(1) [Section 276cc]

30.       Abetment of false return filed u/s 115WD(1) or u/s 115WH(2) [Section 278]

31.       Amendment of section 119 [Section 115WL]


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