Contents. About the Author I-5 Forward I-7 Preface I-9 Chapter-Heads I-11

Transcription

1 Contents About the Author I-5 Forward I-7 Preface I-9 Chapter-Heads I-11 u Amendments made by Finance (No.2) Act, 2014, at a Glance I-23 u GENERAL REFERENCER A. Taxation Rates 1 A.1. Individuals/HUF/AOP/BOI 1 A.2. Firm 2 A.3. Domestic Company 2 A.4. Limited Liability Partnership (w.e.f. AY ) 2 A.5. Short Term Capital Gains 2 A.6. Long Term Capital Gains 3 A.7. Other Tax Rates without Basic Exemption 3 A.8. Foreign Company 4 A.9. Cooperative Society 4 A.10. Tax on Distribution of Dividend/Distributed Income for Buy 5 Back Shares and Distribution by Securitization Trust u/ss 115-O, 115QA and 115TA A.11. Tax on Income Distributed by UTI/Mutual Funds u/s 115R 5 B. Gold and Silver Rates for last 15 Years 5 C. Tax Saving Scheme At A Glance 6 D. Accrued Interest on NSC 9 D.1. Interest Accrued on National Saving Certificates (VIIIth Issue) 9 D.2. Interest Accrued on National Saving Certificates (IXth Issue) 9 E. Accrued Interest on KVP 10 I-13

2 contents I-14 F. Rates of Depreciation under Income Tax Act & Companies Act 10 G. Statutory Time Limits Prescribed Under Income Tax Act 26 H. Important Forms & Challans Under Income Tax Act 30 H.1. Income Tax Return Forms 30 H.2. Tax Payment Challans 32 H.3. Charitable & Religious Trusts Forms 33 H.4. Other Forms 33 I. Monthly Tax Compliance Calendar 33 CHAPTER 1 Basic concepts 1.01 Assessee - Sec. 2(7) Persons liable to pay Income Tax Assessment Year - Sec. 2(9) / Previous Year - Sec Income -Sec. 2(24) Income liable to Tax - Sec Income not liable to Tax - Sec Residential Status for Tax purpose - Sec CHAPTER 2 Salaries 2.01 Chargeability u/s 17(1) Taxability of Different Components of Salary Taxability of Important Allowances Perquisites & Valuation thereof Deductions from Salaries (Sec. 16) Relief u/s. 89 for Arrear/Advance of Salary Computation of Income under the head Salaries & Tax Payable 68 Thereon CHAPTER 3 Income from House Property 3.01 Chargeability u/s Annual value [Sec. 23(1)(a)] 70

3 I-15 contents 3.03 Deductions Computation of House Property Income from Self Occupied House Property Specific Tax Provisions Under Income from House Property 78 CHAPTER 4 Profits and Gains from Business or Profession 4.01 Chargeability u/s Business or Profession Deductions u/ss 30 to Expenses/Payments not allowable u/ss 40, 40A and 43B Partner s Remuneration u/s 40(b) Presumptive Taxation u/ss 44AD & 44AE Minimum Alternate Tax Alternate Minimum Tax Transfer Pricing Method of Accounting (Sec. 145) Accounting Standards as per Income Tax Act [Sec.145(2)] Maintenance of Books of Account Compulsory Audit of Accounts (Sec. 44AB) Restrictions on Cash Payments (Sec. 40A) Computation of Income under the head Profits and Gains of 120 Business or Profession CHAPTER 5 Capital Gains 5.01 Chargeability of Capital Gains/Capital Assets Transfer Full Value of Consideration Cost of Acquisition, Cost to Previous Owner & Cost of Improvement Types of Capital Assets & Capital Gains Rates of Capital Gain Tax Deduction/Exemption under Capital Gain 140

4 contents I Indexed Cost of Acquisition/Improvement and Cost Inflation Index Computation of Capital Gain Reference to Valuation Officer (Sec. 55A) 148 CHAPTER 6 Income from Other Sources 6.01 Chargeability (Sec. 56) Expenses Deductible (Sec. 57) Expenses Not Deductible (Sec. 58) Method of Accounting (Sec. 145) Relief on Arrears of Family Pension [Sec. 89(1)] Gifts/ Deemed Gifts [Sec. 56(2)(vii)] List of Relatives [Sec. 56(2)(vii)] Tax Provisions of Certain Specific Receipts under the head Income From Other Sources 158 CHAPTER 7 Carry Forward & Set off of Losses 7.01 General Set Off of Losses within the same head of Income Set Off of Losses against other heads of Income Carry Forward of Losses Capital Loss - Set off and Carry Forward Losses from House Property - Set off and Carry Forward Business Losses - Set off and Carry Forward Loss from Other Sources - Set off and Carry Forward Loss from Partnership Firm- Set off and Carry Forward Order of Preferences for Set off & Carry Forward of Losses Set off and Carry Forward Rules a Gist 163 CHAPTER 8 Clubbing Provisions 8.01 Transfer of Income without transfer of Assets 164

5 I-17 contents 8.02 Revocable transfer of Assets Income arising to Spouse Income arising to Minor Child Income arising to Son s Wife Income arising from Assets transfer to HUF Property 166 CHAPTER 9 Exempt Income u/s Salaries House Property Business or Profession Capital Gain Other Sources General 177 CHAPTER 10 Deductions under CHAPTER VIA u Deductions under Chapter VIA 185 CHAPTER 11 Rebate from Income Tax Liability u Rebate from Income Tax Liability 197 CHAPTER 12 Restrictions on Acceptance/Repayment of Loans & Deposits/Cash Credits/Unexplained Investment & Expenditure etc. u Restrictions on Acceptance/Repayment of Loans & Deposits/Cash Credits/Unexplained Investment & Expenditure etc. 198 CHAPTER 13 Taxation of Agricultural Income u Taxation of Agricultural Income 201 u Partial Integration of Taxes 203

6 contents I-18 CHAPTER 14 Taxation of NRI s u Taxation of NRI s 205 CHAPTER 15 Taxation of Foreign National s u Taxation of Foreign National s 211 CHAPTER 16 Taxation of HUF s u Taxation of HUF s 213 CHAPTER 17 COMPUTATION OF TAXABLE INCOME & TAX LIABILITY of individual Steps for Computation of Taxable Income Rounding off of Taxable Income Steps for Computation of Tax liability Rounding off of Tax 219 CHAPTER 18 Taxation of Firm s u Taxation of Firm s 220 CHAPTER 19 Taxation of LLP s u Limited Liability Partnership 229 CHAPTER 20 Taxation of AOP s/boi s u Taxation of AOP s/boi s 231

7 I-19 contents CHAPTER 21 Taxation of Companies u Taxation of Companies 234 CHAPTER 22 Taxation of Trust s/charitable Societies u Taxation of Trust s/charitable Societies 242 CHAPTER 23 Taxation of Co-Operative Societies u Taxation of Co-Operative Societies 246 CHAPTER 24 Taxation of Senior Citizens & Very Senior Citizens u Taxation of Senior Citizens & Very Senior Citizens 248 CHAPTER 25 Presumptive Taxation u/ss 44AD & 44AE u Presumptive Taxation u/ss 44AD & 44AE 249 CHAPTER 26 Permanent Account Number (PAN) Permanent Account Number Persons Liable to obtain PAN PAN Application Forms and its Procedure Documents to be Attached with PAN Application form alongwith formats of certificates Surrender of Extra PAN Penalties in respect of PAN Declarations (if not holding PAN) 261

8 contents I-20 CHAPTER 27 Advance Tax u Advance Tax 262 CHAPTER 28 FILING OF RETURNS Persons liable to file I Tax Return Forms for Filing ITR Different Modes of Filing ITR Due Date of Filing of Return Documents for ITR Return of Loss Belated Returns Revised Return Defective Returns Sec. 139(9) Penalty/Prosecution for Non-Filing/Late Filing of Return 268 CHAPTER 29 INTEREST & PENALTIEs Interest on Income Tax (Payable by the Assessee) Interest on Income Tax (Receivable by the Assessee) u/s 244A Penalties 271 CHAPTER 30 Assessment Self Assessment u/s 140A Assessment u/s 143(1) Scrutiny/Regular Assessment u/s 143(2)/143(3) Additions Normally made in Scrutiny Assessments Best Judgment Assessment u/s Re-assessment u/ss 147 to Time limit for Completion of Assessment/Re-assessment u/s De-novo Assessment on Demand u/s 153(2A) 283

9 I-21 contents Rectification of Mistakes u/s Rectification for allowing credit for TDS/TCS u/s 155(14) 284 CHAPTER 31 TAX DEDUCTION AT SOURCE (TDS) TDS Provisions at a Glance TCS Provisions at a Glance Persons Liable to Deduct TDS Payments on which TDS is to be Deducted Circumstances where TDS is not Deductible Tax Deduction & Collection Account Number (Sec. 203A) TDS Provisions on Various Payments TDS on Payments made in Foreign Currency to Non- Residents Certificate of NIL/Lower Rate of Tax from Assessing Officer (Sec. 197) General Provisions of Deduction of Tax at Source General Provisions of Collection of Tax at Source TDS/TCS Returns Penal Provisions 305 CHAPTER 32 TAX AUDIT Limits for Compulsory Tax Audit u/s 44AB Tax Audit Chart (Clause by Clause) Ceiling on Tax Audit Assignments 328 CHAPTER 33 Other Laws Security Transaction Tax Tonnage Tax 331 CHAPTER 34 Wealth tax Applicability Persons Liable to Wealth Tax 333

10 contents I Persons Exempt from Wealth Tax Assets Defined [Sec. 2(ea)] Deemed Assets (Sec. 4) Exclusions & Exemptions Net Wealth Rates of Wealth Tax (Sec. 3) Valuation of Assets Computation of Net Wealth Wealth Tax Return Interest or Penalties 342 CHAPTER 35 ELECTRONIC FILING E-Payment of Direct Taxes (Income Tax/Advance Tax) Registration of Digital Signatures at Income Tax E-Filing of Income Tax Returns E-Filing of Rectification u/s Registration of Digital Signatures at Traces E-Filing of Original TDS Returns Downloading of TDS Certificate/Conso File via TRACES E-Filing of Correction Statements of TDS Online TDS Correction Registration of Chartered Accountants for Uploading Tax Audit Reports/MAT Certification E-Filing of TAX Audit Report/Other Reports Types of Reports/Notices to be Filed Electronically Passwords under various E-Filing Applications 356