Guide to .. Tax Management ,Tax Planning and Tax Saving
 

Tax Ready Reckoner @ Income Tax Management

Basic Knowledge/Concepts about Income Tax

  1. Agricultural Income [Section 2(1A)] - Definition under I.Tax
  2. Person [Section 2(31)] - Definations under I.Tax.
  3. Income [Section 2(24)] - Definations under I.Tax.
    1. Types of Income
    2. Income Deemed To Be Received In India
    3. Income Which ‘Accrues’ Or ‘Arises’ In India
    4. Income Deemed to Accrue or Arise in India
      1. [Section 9(1)(i)] - Income Arising From Business Connection In India
      2. Income from any property held in India and assets or sources of income located in India
      3. Income from transfer of capital assets situated in India
      4. [Section 9(1)(ii)] - Salaries earned in India
      5. [Section 9(1)(iii)] - Salaries For Government Service Outside India
      6. [Section 9(1)(iv)] - Dividend paid abroad by Indian Company
      7. [Section 9(1)(v)] - Income By Way Of Interest
      8. [Section 9(1)(vi)] - Income By Way Of Royalty
      9. [Section 9(1)(vii)] - Income By Way Of Fees For Technical Services
  4. Heads of Income [Section-14]
  5. Gross Total Income [Section-80B (5)]
  6. Total Income [Section 2(45)]
  7. Rounding off of Total Income [Section 288A]
  8. Rounding off of Tax [Section 288B]
  9. Assessment Year [Section 2(9)]
  10. Previous Year [Section 2(34) r.w. Section 3]
  11. Income is Taxed in the same Year in which it is Earned
  12. Constitutional Provision Governing Taxation in India [Article 246 (Seventh Schedule)]
  13. Taxes to be imposed only by Authority of Law [Article 245]
  14. Sources Of Law Relating To Income Tax (Documents containing Laws relating to Income Tax)

Capital & Revenue

  1. Capital Receipts vs Revenue Receipts
  2. Capital Expenses vs. Revenue Expenses
  3. Revenue Losses Vs. Capital Losses
Basis of Charge (Residential Status)
  1. Introduction and Meaning of Residential Status
  2. Residential Status of an Individual
    1. Resident (Ordinary Resident) [Section 6(1)]
    2. Resident But Not Ordinarily Resident
    3. Non-resident [Section-2(30)]
  3. Residential Status of H.U.F.
    1. Ordinary Resident [Section 6(2)]
    2. Not Ordinarily Resident [Section 6(6)(b)]
    3. Non-Resident [Section 2(30)]
  4. Residential Status Of FIRM And AOP Or BOI
    1. Ordinary Resident [Section 6(2)]
    2. Not Ordinarily Resident
    3. Non-Resident [Section 2(30)]
  5. Residential Status of a ‘Company’
    1. Resident [Section 6(3)]
    2. Not Ordinarily Resident
    3. Non-Resident [Section 2(30)]
  6. Residential Status of ‘Every’ other Person
  7. Residential Status In A Nutshell

Exempted Incomes ( Tax Free) [ Sec. 10(1) to Sec. 10(50)]

Section 10 gives list of incomes which are exempt from tax. In this part you can gain knowledge about various incomes which are exempt from tax under Section 10.

Tax Holiday ( Section 10A, 10AA, 10B & 10BA)

  1. Free Trade Zone (FTZ) – Special Provision in respect of Newly Established Undertaking in Free Trade Zone.         
    1. Conditions to be satisfied
    2. Amount of Deduction-General Provisions
    3. Period and Rate of Deduction
    4. Transfer under a Scheme of Amalgamation or Demerger
  2. Special Economic Zone (SEZ)- Special Provisions in respect of newly established units in special economic zone.
    1. Conditions to be satisfied
    2. Amount of Deduction
    3. Consequence for mercer and demerger.
  3. 100% Export Oriented Undertakings (100% E.O.U.)
    1. Conditions to be Satisfied
    2. Amount of Deduction
    3. Period of Deduction
    4. Transfer under a Scheme of Amalgamation or Demerger
  4. Income from Export of Artistic Handmade Wooden Articles
    1. Conditions to be Satisfied
    2. Amount of Deduction

Tax Holiday - Deduction

( Section 80-IA, 80-IAB, 80IB & 80IC)

  1. Deductions In Respect Of Profits And Gains From Industrial Undertakings Or Enterprises Engaged In Infrastructure Development. [Sec. 80-IA]
  2. Deductions In Respect Of Profits And Gains By An Undertaking Or Enterprise Engaged In Development Of Special Economic Zone[Sec. 80-IAB]
  3. Deduction In Respect Of Profits And Gains From Certain Industrial Undertakings Other Than Infrastructure Development Undertaking.
    [Sec. 80-IB]

  4. Special Provisions In Respect Of Certain Undertakings Or Enterprises In Certain Special Category States- How To Find Out [Sec. 80-IC]

Tax Rates
For the Financial Year 2017-2018 [ A.Y. 2018-2019]

Compution of Total Income

Income from 'Salary'

> 'Salary' - Meaning & Definitions
> "Provident Fund" Valuation for Computing Salary Income
> Allowances Under Section 17(3)
> 'Perquisies' & 'Income Tax' ( Taxable & Exempted) Under Section-17(2)
> Profit in Lieu of Salary Under Section-17(3)
> Deductions Under Section-16 from Gross Salary
> Deductions Under Sec.80C out of Gross Total Income
> Chat Showing Computation of 'Salary' Income

Income from 'House Property'

1.

Income chargeable to Tax under the head “House Property”

2.

Meaning of Deemed Owner

3.

Meaning of Composite Rent with Tax Treatment

3.1. Tax Treatment of Composite Rent of Building Let Out along with Other Assets

3.2. Tax Treatment of Composite Rent in a case of Letting of Building along with Provision of Services

4.

Computation of Income from a Let Out Property

5.

Computation of Gross Annual Value (GAV) of a Let Out Property

5.1. Computation of reasonable expected rent of a let out property (i.e. step-1).

5.2. Computation of actual rent of a let out property (i.e. step 2)

5.3. Computation of gross annual value of a let out property (i.e. step 3)

6.

Computation of Gross Annual Value in the case of a Property which is Vacant for some time during the year

7.

Expenses to be Deducted from Gross Annual Value of a Let Out Property

8.

Pre-Construction Period

9.

Meaning of Self-Occupied Property

10.

Computation of Income from Self Occupied Property

11.

Tax implication of more than one House Property occupied for Residence Purpose

12.

Deduction in respect of Interest on Housing Loan in case of Self-Occupied Property

13.

Computation of income when property is Self-Occupied for part of the year and Let Out for part of the year

14.

Computation of income when, part of the property is Self-Occupied and part is Let Out

15.

Tax treatment of Unrealised Rent which is subsequently realised

16.

Tax treatment of Arrears of Rent

17.

Deduction in respect of Interest on Loan taken for Residential House Property

Profit and Gains of   'Business or Profession'

1.Definition Of Head Business or Profession [Section 28]

2. Compensation Received as Business Income [Section 28(ii)]

3. Income of a Trade or Professional Association [Section 28(iii)]

4. Income from Export Incentives is chargeable to Income Tax

 5. Any Amount Received Under certain Agreement for not to Carry on Business [Section 28(va)]

6. Speculation Business [Explanation to Section 28]

7. Profit Earned from an Illegal Business

8. Transfer of certain Assets Specified u/s 35AD in certain circumstances [Section 28(vii)]

8-A. Certain Incomes relating to business but not taxable under the head ‘Profits Gains of Business or Profession .

9. Computation of Income of Business or Profession - General Important Points

10. General Principles - for Deductions Allowed from Gross Income of Business and Professions

11. Deductions from Gross Income of Business or Profession [ Section 30 to 44DB]

12. Expressly Admissible Deductions from Gross Income from Business or Profession [Section 30-36]

13. Expenditure Incurred in the Field of Scientific Research [Section 35]

14. Expenses on Research Activities carried on by the assessee himself

15. Contribution to Approved Institutions to carry on Research is Allowed as Weighted Deductions for Calculating Profits and Gains of Business or Professions.

 17. Expenditure incurred on the acquisition of Patents Rights or Copy Rights [Section 35A] [Applicable for expenditure incurred before 1-4-1998]

18. Expenditure on know-how [Section 35 AB] [Applicable for expenditure incurred before 1-4-1998]

 19. Expenditure for obtaining License to operate Telecommunication Services [Section 35 ABB]

20. Expenditure on eligible projects or schemes [Section 35 AC]

 21. Deduction in respect of expenditure incurred on setting up of a Specified Business [Sec. 35AD]

22. Any amount given to an institution or association [Section-35CCA]

23. Expenditure on Notified Agricultural Extension Project [Section-35 CCC] [w.e.f. A.Y. 2013-14]

24. Expenditure on Notified Skill development project [Section-35 CCD] [w.e.f. A.Y. 2013-14]

25. Amortisation of Certain Preliminary Expenses [Section 35D]

26. Expenditure on demerger or amalgamation [Section 35DD]

27. Amortisation of Expenditure Incurred Under Voluntary Retirement Scheme [Section 35DDA]

 28. Expenditure on Prospecting etc., for certain Minerals [Section 35E]

29. Other Deductions Allowed to Compute Income from Business or Profession   [Section-36]

30. Interest on Borrowed Capital [Sec. 36(1)(iii)].

31. Deduction of discount on Zero Coupon Bond [Section 36(iiia)]

32. Contribution to Provident and Superannuation Fund [Sec. 36(1)(iv)].

34. Employee’s contribution towards staff welfare schemes [Sec. 36(1)(va)]

35. Bad debts [Sec. 36(1)(vii)]

36. Bad debts of Banks, financial institution and industrial investment corporation etc. [Section 36(1)(viia)]

37. Special Reserve Created and Maintained by Financial Corporation [Section 36(1)(viii)].

38. Expenditure on Family Planning [Section-36(1)(ix)].

39. General Or Allowable Deductions [Section 37]

41. Commission earned by the agents of Life Insurance Corporation, Unit Trust of India, Post Office or Mutual Funds

42. Legal Expenses in the Interest of Business are Allowable Expenses

43. Losses incidental to Business Allowed to be Debited.

44. Expenses Expressly Disallowed In the Case of any ‘Assessee’ [ Section-40a]

45. Expenses Expressly Disallowed In the Case of any Firm [Section 40(b)]

46. Expenses Expressly Disallowed In General Cases [Section 40(b)]

47.       Disallowing of certain Expenses under certain circumstances like ‘Payments to Relatives’

48.Payments exceeding ` 20,000 by cash/bearer cheque [Section 40A (3)].

48-A. Provision for the Payment of Gratuity – [Section-40A(7)]

 49. DEEMED PROFITS Under Profits and Gains of Business or Professions [Section 41]

50. VALUATION OF STOCK for Profit and Gains of Business or Professions

51. Deduction Of Certain Payments Only If Actually Paid [Section 43B]

52. Maintenance Of Accounts By Certain Persons Carrying On Profession Or Business. [Sec. 44AA]

53. Compulsory Audit For The Non-Corporate Assessees [Section-44 AB]

54. Computation of Income on Estimated Basis [Section 44AD]

 55. Profit from the business of carriage of goods for truck owners [Section 44 AE]

56. Special provision for computation of income from royalties in case of nonresidents [Section 44DA]

57. Partly Agricultural and Partly Business Income

 58. Adjustment In The Profit And Loss A/C Prepared By The Assessee

60. Computation of Profits and Gains of a Non-Resident from Shipping Business— [Section 44B]

61. Computation of Profits and Gains of business of Oil Exploration [Section 44BB]

 62. Computation of Profits and Gains of the Business of operation of Aircrafts by Non-Resident [Section 44 BBA]

63. Computation of Profits of Foreign Enterprises [Section 44BBB]

64. Ceiling Limits in respect of Head Office Expenses [Section 440]

67. Special Provisions in case of Income of Public Financial Institutions etc. [Section 43D]

Income from 'Capital Gain'

1.       Capital Gain , Capital Assets & Property for Computing Capital Gain

2.       Types of Capital Assets for Computing ‘Capital Gain’

2A.    Types of Capital Gains for Computing ‘Capital Gain’

3.       Computation Of ‘Period Of Holding

4.       Transfer Of A Capital Asset [Section-2(47)]

5.       Transactions Not regarded as ‘Transfer’ [Section-47]

6.       Capital Gain is Deemed to be the Income of the Previous Year

7.       Amount Received from insurer [Section-45(1A)] for Computing Capital Gain

 8.      Transfer of Capital Assets by a person to firm, AOP or Body Of Individuals (BOI) [Section 45(3)] for Computing Capital Gain

 9.      Transfer of Capital Assets on Dissolution of Firm, AOP or Body Of  Individuals (BOI) [Section 45(4)] for Computing Capital Gain

 10.    Enhancement of Compensation on Compulsory Acquisition of Assets [Section-45(5)] for Computing Capital Gain

10(A).Sale of units Purchased for Deduction U/s 80 CCB [Section-45(6)]

11.     Distribution of Assets by A Company in Liquidation for Computing Capital Gain

11(A).Capital Gain on Purchase by A Company of its Own Shares or Other  Securities [Section 46A]

12.     DEEMED CAPITAL GAIN [Section 47A]

13..    Method of Computing Capital Gain [Section 48]

13-A. Expenses Disallowed u/s Section 48 for Computing Capital Gain

14.     Cases in which the Indexation of Cost is not to be done while Calculating long Term Capital Gain

15.     Computation of Capital Gain in Case of Non-Residents [Sec. 48 Proviso 1 ]

16.     Determination of Cost of Acquisition for Computing Capital Gain.

 17.    Taxation of Gain on ‘Slump Sale’ for Computing Capital Gain

18.     Special Provision for full Value of Consideration in certain cases (Section 50C] for Computing Capital Gain

 19.    Treatment of Advance Money Received and Forfeited (Section-51] for Computing Capital Gain

20.     Cost of Acquisition of Goodwill [Section-55(2)(a)] for Computing Capital Gain

21.     Cost of Acquisition of Shares [Section 55 (2) (v)] for Computing   Capital Gain

22.     Capital Gains Exempted u/s 10

23.     Capital Gains—Exempted u/s 54

24.     Capital Gain on Transfer of Self-Cultivated Agricultural Land in Urban   Areas [ Section 54 B]

25.     Capital Gains on Compulsory Acquisition Of Land And Buildings [Section 54D]

26.     Capital Gain on Transfer of any Long Term Capital Asset [Section-54EC]

27.     Exemption of Capital Gain on Transfer Of Long-Term Capital Assets in case of Investment In Residential House [Section 54F]

28.     Capital Gain on Shifting of Industrial Undertaking from Urban Areas to Non-Urban Areas [Section 54G]

29.     Exemption of Capital Gain on transfer of assets in case of shifting of Industrial Undertaking from an urban area to any Special Economic Zone (SEZ) [Sec. 54GA]

 30.    Long term Capital Gain on Transfer of Residential Property if Net Consideration is Invested in the Equity Shares of an Eligible company [Section 54GB] [w.e.f. A.Y. 2013- 14 but upto A.Y. 201 7-1 8]

 31.    Reference to Valuation Officer [Section 55] towards Capital Gain

32.     TREATMENT OF CAPITAL LOSS [Section 74]

33.     TAX ON CAPITAL GAINS

34.     TAX ON SHORT-TERM CAPITAL GAINS (STCG)

Income from 'Other Sources'

> Sec.56 : Basis of Charges
> Deductions from 'Income from Other Sources'
> Amounts Expressly Disallowed
> Income From Other Sources – in  Nutshell

'Clubbing of Income' - Aggregation of Income

> Sec.60 : Transfer of Income without Transfer of Assets
> Sec.61 : Revocable Transfer of Assets
> Sec.64 : Inclusion of Income of Spouse, Minor Child , etc. in income of Individual

'Set Off and Carry Forward of Losses'

> Sec.70 : Set-Off of Loss from one Source against Income from another Source Under the Same Head of Income.
> Sec.71 : Set-Off of Loss from one Head against Income from another Head
> Sec.71 B : Carry Forward and Set-Off of Loss Under the Head 'Income from House Property'
> Sec.72 : Carry Forward and Set-Off of Business Losses
> Sec.73 : Losses in the Speculation Business
> Sec.74 : Losses Under the Head 'Capital Gains'.
> Sec.74a : Losses from Certain Specified Sources Falling Under the Head 'Income from Other Sources'
> Table showing Set Off and Carry Forward of Losses

 

Deductions.

    1. Deduction in respect of Life Insurance Premia, Deferred Annuity, Contribution to PF, etc. [ Sec. 80 C ]
    2. Deduction in respect of Contribution to certain Pension Funds [Sec.80CCC]
    3. Deduction in respect of Contribution to Pension Scheme of Central Government or any other Employers [ Sec. 80 CCD]
    4. Deduction in respect of Health or Medical Insurance Premia [ Sec.80D]
    5. Deduction in respect of Maintenance Including Medical Treatment of a Dependent who is a person with Disability [ Sec. 80 DD ]
    6. Deduction in respect of Medical Treatment , etc. [ Sec. 80 DDB ]
    7. Deduction in respect of Interest of Loan taken for Higher Education [Sec.80 E ]
    8. Deduction in respect of Donations to certain Funds, Charitable Institutions , etc. [ Sec. 80 G ]
    9. Deduction in respect of Rents Paid [ Sec. 80 GG

Deductions in respect of certain Incomes

    1. Deduction in respect of Profit and Gains from Industrial Undertaking or Enterprises engaged in infrastructure Development [ Sec. 80 IA ]
    2. Deduction in respect of Profit and Gains from Industrial Undertakings or enterprises engaged in development of Special Economic Zone. [Sec. 80 IAB ]
    3. Deduction in respect of Profit & Gain from certain Industrial Undertaking other than Infrastructure Development Undertaking [Sec.80-IB]
    4. Special Provisions in respect of Certain Undertaking or Enterprises in certain special category States. [ Sec. 80-IC]
    5. Deduction in the case of Hotels and Convention center in NCR [Sec.80ID]
    6. Deduction in respect of certain undertaking in North-Eastern States [Sec.80-IE].
    7. Deduction In Respect Of Profit And Gains From Business Of Collecting And Processing Of Bio-Degradable Waste. [ Sec. 80-JJA]
    8. Deduction In Respect Of Employment Of New Workmen [ Sec. 80-JJAA]
    9. Deduction In Respect Of Certain Income Of Offshore Banking Units And International Financial Services Center. [ Sec. 80-LA]
    10. Deduction In Respect Of Income Of Co-Operative Societies. [ Sec. 80P ]
    11. Deduction In Respect Of Royalty Income, Etc., Of Authors Of Certain Books Other Than Text-Books [ Sec. 80-QQB ]
    12. Deduction In Respect Of Royalty On Patents [ Sec. 80-RRB ]

Other Deductions

    1. Deduction In Case Of A Person With Disability [ Sec. 80 U ]

Income Tax on Co-operative Cocieties

1.         Definition of Co-operative society [Section 2(19)]—
2.         Deduction in respect of income of co-operative societies [Section 80P]
3.        RATES OF INCOME-TAX FOR CO-OPERATIVE SOCIETIES [ A.Y. 2014-2015 & A.Y. 2015-2016]

Income Tax on Partnership Firms

1.      Meaning of Firm, Partner and Partnership—
2.      Liability of Partners of limited liability partnership in liquidation [Section 167C] —
3.      Assessment as a Firm [Section 184(1)]—
4.      First assessment as a firm [Section 184(2)]—
5.      Subsequent assessment as a firm [Sections 184(3) & 184(4)]—
6.      Failure of conditions mentioned in Section 144 [Section 184(5)]—
7.     Assessment when section 184 not complied with [Section 185]—
8.     Uls 40(b). Amounts deductable subject to limits.
9.     Special Provisions For Computation Of Income Of Certain Types Of Business
10.   Rates of Income-tax of Partnership Firms

Limited Liability Partnership

1.         Meaning of Limited Liability Partnership—
2.         Process to Start LLP
3.         Essential elements to incorporate LLP—
4.         Who can be partner in LLP—
5.         User Registration—
6.         Designated Partners and their role—
7.         Filing of LLP agreement (Form-3) and Partners’ details (Form-4)—
8.         Accounts, Audit and Returns—
9.         Conversion of existing firms, Companies and unlisted public company into an LLP—
9(a).    # Conversion of small company into LLP (Section 47(xiiib)]
10.         Winding up and dissolution of LLP—
11.       Difference between LLP and Partnership—
12.       Special provisions relating to certain limited liability patnerships— [Inserted bythe Finance Act, 2011, w.e.f. 1.04.2012].

Income Tax Authorities

  1. Various Authorities
  2. Power Of Income Tax Authorities Relating To Search And Seizure [ Section 132 ]
  3. Application Of Seized Or Requisitioned Assets [Section132(B)]
  4. Power Of Survey [ Section 133a ]
  5. Provision Relating To Power To Collect Certain Information [Section 133b]
  6. Disclosure Of Information Regarding Assessees To Certain Authorities [ Section 138 ]

Recovery of Tax and Refunds

  1. Payment of Tax
  2. Modes of recovery of Tax
  3. Refunds

Tax Deducted at Source (TDS)

    1. Introduction- Deduction of Tax at Source (TDS)
    2. Deduction of Tax from the “Salary” [ Sec-192]
    3. Deduction Of Tax From Interest On Securities [ Section-193]
    4. Deduction Of Tax From Deemed Dividend [ Section-194]
    5. Deduction Of Tax From Interest Other Than Interest On Securities [ Section 194A]
    6. Winning From Lottery Or Crossword Puzzle Or Card game And Game Of Any Sort [Section 194B]
    7. Winning From Horse Race [ Section 194BB]
    8. Payment To Contractor And Sub-Contractor [ Section 194C]
    9. Tax Deducted At Source From Insurance Commission [ Section 194D]
    10. Payments To Non-Resident Sportsmen Or Sports Associations [ Section 194E]
    11. Commission, Etc., On The Sale Of Lottery Tickets [Section 194G]
    12. Commission Or Brokerage [ Section 194H]
    13. Payment Of Rent [ Section 194 I ]
    14. Fees For Professional Or Technical Services [ Section 194J]

Filling of Return

  1. Introduction
  2. Time Limit For Filling Return Of Income [ Section 139(1)]
  3. When Return Of Loss Should Be Filed [ Section 139(3)]
  4. Can Return Be Filied Beyond Time [ Section 139(4)]
  5. Can Revised Return Be Filed [ Section 139(5)]
  6. What Is A Defective Or Incomplete Return [ Section 139(9)]
  7. Who Should  Sign The Return Of Income [ Section 140]
  8. Permanent Account Number (PAN)

Tax Planning , Tax Avoidance and Tax Evasion

1. Meaning of Tax Planning

1.1. Why Every Person Needs Tax Planning ?
1.2. How is Tool of Tax Planning Exercised ?
1.3. Methods Of Tax Planning

2. Tax Avoidance
Tax Evasion
4. The Difference Between ‘Tax Planning’ And ‘Tax Management’
5. The Difference Between ‘Tax Avoidance’ And ‘Tax Evasion’.

'PENALTIES' Under Income Tax Act. 1961.

1.

Penalty for default in making payment of Self Assessment Tax

2.

Penalty for default in making payment of Tax

3.

Penalty for  Late filing fees for delay in filing the TDS/TCS statement

4.

Penalty for failure to comply with notice issued under section 142(1) or 143(2) or direction for audit under section 142(2A)

5.

Penalty for underreporting and misreporting of income

6.

Penalty for failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA

7.

Penalty for failure to keep and maintain information and document etc.in respect ofinternational transaction or specified domestic transaction

8.

Penalty in case of search

9.

Penalty for  Failure to get accounts audited or furnish a report of audit as required under section 44AB

10.

Penalty for failure to furnish a report from an accountant as required by section 92E

11.

Penalty for failure to deduct tax at source, wholly or partly or failure to pay wholly or partly tax under section 115-O(2)

12.

Penalty for failure to pay tax in respect of winning from lottery or crossword puzzle

13.

Penalty for failure to collect tax at source

14.

Penalty for  Taking or accepting certain loans or deposits or specified sum in contravention of provisions of section 269SS

15.

Penalty for Repaying loans or deposits or specified advance in contravention of provisions of section 269T

16.

Penalty for Failure to furnish statement of financial transaction or reportable account (previously called as ‘Annual Information Return (AIR)’) as required under section 285BA(1)

17.

Penalty for furnishing inaccurate statement of financial transaction or reportable account

18.

Penalty for failure to furnish statement or information or document by an eligible investment fund.

19.

Penalty for Failure to furnish any information or document as required by section 92D(3)

20.

Penalty Section 271GB for failure to furnish report or for furnishing inaccurate report under Section 286

21.

Penalty for failure to furnish information or document under section 285A

22.

Penalty for failure to file the TDS/TCS return

23.

Penalty for failure to furnish information or furnishing inaccurate information under section 195

24.

Penalty for Failure to co-operate with the tax authorities

25.

Penalty under section 272A(2)

26.

Penalty for failure to comply with provisions of section 133B

27.

Penalty for  Failure to comply with provisions of relating to Permanent Account Number (PAN)

28.

Penalty for  Failure to comply with provisions relating to Tax Deduction Account Number or Tax Collection Account Number

29.

Relaxation from penalty

30

[A] Types of Penalties imposed under Income Tax Act. 1961.

31

[B] Power to Reduce or Waive Penalty, etc. in certain cases (Section 273 A)

32

[C] Stay or Compounding proceedings [Section 273 A (4)]

33

[D] Procedure for imposing Penalty [Section 274]

34

[E] Time limits of commencement and completion of Penalty proceedings (Section 275)

35

[F] Power of Commissioner to Grant Immunity from Penalty [Section 273AA]

36

[G] Summary Of Provisions Relating To Penalties

37

[H] Important Notes on Penalty under Income Tax Act. 1961.

Prosecutions By Income Tax Authorities

    1. For removing any Assets, Books of Account, Documents etc. found during search in contravention of order served U/s 132(3) [ Sec. 275A]

    2. Removal, concealment, transfer or delivery of property to avoid tax recovery [ Sec. 276 ]
    3. Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B. [ Sec. 276B]
    4. Failure to pay the tax collected at source. [ Sec. 276BB]
    5. Willful attempt to evade tax, etc. [ Section 276 (C)(1)]
    6. Failure to furnish returns of income [ Sec. 276CC]
    7. Failure to produce accounts and documents. [ Sec. 276D]
    8. Abetment of false return, etc. [ Sec. 278]
    9. Offences by companies. [ Sec. 278 B]
    10. Offences by Hindu undivided families. [ Sec. 278C]

Income Tax "Settlement Commisstions"

    1. Meaning of Settlement Commisions
    2. Setting Up Of Settlement Commission
    3. Constitution Of Settlement Commission [Section 245B]
    4. Jurisdiction And Powers Of Settlement Commission [Section 245BA]
    5. Vice-Chairman To Act As Chairman [Section 245 BB]
    6. Transfer Of Cases [Section 245 BC]
    7. Decision To Be Majority [Section 245 BD]
    8. Application For Settlement Of Cases [Section 245 C]
    9. Calculation Of Additional Income-Tax [Section 245C (IA)]
    10. Bar On Making Application [Section 245C (1E)]
    11. Procedure On Receipt Of Application [Section 245D]
    12. Payment Of Additional Income-Tax [Section 245D (2A)]
    13. Power Of Settlement Commission To Order Provisional Attachment To Protect Revenue [Section 245DD (1)]

Fringe Benefit Tax (FBT)

1. Introduction
2. Salient Features Of FBT
3. Important Points Relating To Fringe Benefit Tax
4. Characteristics Of FBT
5. Classification Of Employer For FBT
6. Classification Of Not Employer For FBT
7. Direct Fringe Benefit
8. Deemed Fringe Benefit
9. Payment Of FBT To The Government
10. Filing Of FBT Return

Service Tax

    1. Service Tax – Key Provisions At A Glance
    2. Applicability Of Service Tax
    3. Service Tax Rate
    4. Registration Formalities
    5. Payment & Refund Of Tax
    6. Filling Or Returns
    7. Assessments
    8. Central Value Added Tax (Cenvat) Credit
    9. Penalties & Prosecutions

Value Added Tax (VAT)

    1. Introductions
    2. Concept of VAT
    3. Types of Dealers
    4. General terminology used in VAT
    5. Advantages of VAT over Sales Tax
    6. VAT Rates
    7. Computation of VAT and Profit
    8. Items Covered in Indian VAT

Central Sales Tax (CST)

    1. Introductions
    2. Inter-State Sale
    3. What are the objectives of CST Act ?
    4. What are the conditions for CST Act to become applicable.
    5. Rate of CST
    6. Sale Price
    7. CST Transactions Forms

Tax Collected at Source (TCS)

    1. Introductions
    2. Classification of Seller for TCS
    3. Classification of Buyer for TCS
    4. Goods and Transactions classified under TCS.
    5. Certificate of TCS
    6. TCS Exemptions
    7. Payment of TCS to the Government
    8. Electronic TCS (e-TCS)
    9. Filing of TCS Returns

Taxation in Companies

1.      Corporate Tax ( MEANING & CONCEPT)

1.1. Sec. 2(26) : Definition Of An Indian Company

1.2. Sec. 2(23A) : Definition Of A Foreign Company

1.3. Definition Of A Domestic Company

1.4. Sec.2(18): Company Of Substantially Interest To The Public

1.5. Corporate Tax Rates

1.6. Computation Of Tax

1.7. Gross Total Income

1.8. Allowable Deductions

1.9. Tax Rebates Available For Corporate Tax

1.10. Payment Of Tax

1.11. Advance Tax Payment

1.12.Filing Of Income Tax Returns

1.13.Forms For Filing Corporate Tax   

2.      COMPUTATION OF BOOK PROFIT

3.      ANALYSING COMPUTATION OF TOTAL INCOME AND BOOK PROFIT

4.      AMOUNTS EXPRESSLY ALLOWED AS DEDUCTION

4.1.  Sec. 30  :           Rent, Rates, Taxes, Repairs & Insurance Of Buildings Used For Business

4.2. Sec. 31 :             Repairs & Insurance Of Plant, Machinery & Furniture

4.3. Sec. 32  :            Depreciation

4.4. Sec. 36(1)(i) :     Insurance Of Stock

4.5. Sec. 36(1)(ib) :   Insurance Premium On The Health Of Employees

4.6. Sec. 36(1)(ii) :    Bonus Or  Commission Paid To Employees

4.7. Sec. 36(1)(iii) :   Interest Paid On Borrowed Capital For The Purpose Of Business Or Profession

4.8. Sec. 36(1)(iv)  :  Employer’s Contribution Towards Recognized Provident Fund Or An Approved Superannuation Fund.

4.9.  Sec. 36(1)(v)  :  Employer’s Contribution Paid Towards An Approved Gratuity Fund

4.10.Sec.36(1)(va)]: Employee’s Contribution Towards Staff Welfare Scheme.

4.11.Sec.36(1)(vii)]:  Bad Debts

4.12. Sec.36(1)(ix)]:  Family Planning Expenditure Incurred By Company

4.13.Sec.36(1)(xii) :  Banking Cash Transaction Tax (BCTT)

4.14. Sec. 37             :General Deduction

4.15.                           Loss arising due to Business

4.16.                           Penalty For Any Breach Of Law

 

5.      SEC. 40 A : AMOUNT EXPRESSLY DISALLOWED AS DEDUCTION                        

6.      SEC. 35 : EXPENDITURE ON SCIENTIFIC RESEARCH 

7.      SEC. 35D : AMORTISATIN OF CERTAIN PERLIMINARY EXPENSES

8.      RESTRICTION ON DEDUCTIONS

8.1. Sec. 40 A           :Non-Deductible Expenses or Payments

8.2. Sec.40A(2)(a)    :Payment Made to Relatives

8.3. Sec.40A(3)         :Cash Expenditure 

8.4. Sec. 43 B           :Certain Expenses Allowed as Deduction only on Payment

(A)[ Section 43b]      Is Applicable Only To Following Actual Paymennt

(B)                               In Which Year Deduction Is Allowed ?

9.      [SECTION 115JB]  MINIMUM ALTERNATIVE TAX (MAT)

9.1.      Introduction

9.2.      Provisions Of Minimum Alternative Tax On Companies (Mat) [Section 15 JA]

9.3.      Tax Credit In Respect Of Tax Paid Under Mat    [Section 115JAA]

9.4.      [Seci1on 115JB] :     Special Provision For Payment Of Tax By Certain Companies (MAT)

9.5.      Tax On Distributed Profits

10.    CARRY FORWARD AND SET-OFF LOSES

          10.1.   Business Loss [Section 72 (1)].

10.2.   Loss of speculation business.

10.3.   Loss under the head capital gains

10.4.   Loss under the head ‘Other Sources’ [Section 74A (3)).

10.5.   Carry forward and Set-off  Loses of Certain Companies [Section 79]

10.6.   Order In Which Current And Brought Forward Losses Are To Be Adjusted

10.7.   Losses in Case of Succession of Business or Profession

10.8.   Provisions relating to carry forward and set-off accumulated loss and unabsorbed depreciation in certain cases of amalgamation [Section 72 (A)]

10.9.   Carry forward and Set-off Lossess of Certain Companies [Section 79]

10.10. Provisions relating to carry forward and set off of accumulated losses and unabsorbed depreciation on amalgamation and demerger [Section 72A]

10.11. Filling of Return of Loss [Sec. 80]

11.    TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES [ Sec. 115-O ]

Tax Management- Managerial & Financial Decisions

 

1. Tax Management with reference to -Location & Nature of Business.

1.1.       Tax Management  In Location Of The New Business
1.2.       Tax Management  In Nature Of  The New Business

2. Tax Management with reference to -Deemed Dividend

2.1.       Introduction
2.2.       Any Distribution Entailing Release Etc.
2.3.       Any Distribution By Way Of Debenture Etc.
2.4.       Distribution To Shareholders On Liquidation
2.5.       Distribution On Reduction Of Capital     
2.6.       Payment By Way Of Advance Or Loan To Shareholders
2.7.       Tax Planning Through Issue Of Bonus Shares
2.8.       Tax Planning Through Purchase Of Own Shares Or Distribution Of Dividend

3. Tax Management with reference to –Lease or Buy Decisions

4. Tax Management with Reference to - Repair, Replace and Make or Buy Decisions

4.1. Repair, Replace, Renewal Or Renovation

4.2. ‘Make Or Buy’  Decisions

5. Capital Gains on Distribution of Assets by Companies in Liquidation

6. Sale of Scientific Research Asset

7. Tax Management With Reference To Capital Structure

7.1. Capital Structure Decisions

7.2. Tax Considerations

7.3. Tax Planning

8. Conversion of Firm / Sole Proprietorship to Company

8.1. Conversion Of From Into Company [ Section 47 (Iii) ]

8.2. Conversion Of Sole Proprietary Business Into Company [Section 47(Xiv)]

8.3. Provisions Relating To Carry Forward And Set Off Of Accumulated Loss And Unabsorbed Depreciation Allowance In Case Of Succession [Section 72a(6)]

8.4. Withdrawal Of Exemption [ Section 47a(3)]

[A] ‘Assessment’ of “Agricultural Income

[B] ‘Assessment’ of “Individual

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

[D] ‘Assessment’ Of “FIRMS

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

[F] ‘Assessment’ of “Companies

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

[H] ‘Assessment’ in “Special Cases

[H] ‘Assessment’ of “Fringe Benefits

"Family Tax Planning"- More Income & Less Taxes

Special Provisions relating to 'Income Of Shipping Companies' [Chapter Xll-G of Income-Tax Act]

Security Transaction Tax (STT)

Commodities Transaction Tax - CTT

Tax Guide for NRI - Tax Planning, Tax Saving

FAQ ( Freequently Asked Question ) on Taxation

 
 
 
 
 
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