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CONTENT
[CAHPTER-1]
Amendments brought in the Income-Tax Act by The Finance Bill, 2025
1.1. Amendments Related to Investment Funds and IFSCs
1.2. Presumptive Taxation for Non-Residents
New Section 44BBD:
1.3. Block Assessment and Undisclosed Income
1.4. Income Tax Slabs for FY 2025-26 (AY 2026-27)
1.5. Revised TDS threshold Limits effective from April 1, 2025
Key TDS Threshold Changes (FY 2025-26)
1.6. Key changes to Tax Collected at Source (TCS) effective from April 1, 2025
TCS Changes from April 2025
1.7. Extension of Time Limits for Filing Updated Tax Returns (ITR-U)
Updated Tax Return (ITR-U) Time Limits and Additional Tax Liability
Key Notes:
1.8. Tax Exemption for Start-ups
Key Features of the Exemption
Budget 2025 Update
Additional Relief – Angel Tax Exemption (Section 56)
1.9. Key Amendments related to Deduction on Remuneration paid to Partners
1.10. Treatment of ULIPs (Unit-Linked Insurance Plans) as Capital Gains
1.11. Relaxation of Deemed Let-Out Property Provision under the Finance Bill 2025.
1.12. Removal of Equalisation Levy under the Finance Bill 2025
[CHAPTER-2]
Important Concepts of Taxation
2.1. Definition of “Person” under Section 2(31)
2.2. Assessment Year [Section 2(9)]
2.3. Previous Year [Section 3]
2.4. Assessee [Section 2(7)]
2.5. Charge of Income-Tax [Section 4]
2.6. “Total Income” under Income Tax Act, 1961.
2.7. Rounding off of Total Income [Section 288A]
2.8. How to Compute “Tax Liability on Total Income” under the Income Tax Act, 1961.
Example Calculation (AY 2025-26)
[CHAPTER-3]
Residential Status
[Sections 5 to 9B]
3.1. Scope of Total Income / Incidence of Tax [Section 5] under the Income Tax Act, 1961.
3.2. Determination of “Residential Status” under Income Tax Act, 1961 (Section 6)
3.3. Rules for Determining Residential Status of an Individual [Section 6(1) & 6(1A)]
3.4. Residential Status of Hindu Undivided Family (HUF) [Section 6(2)]
3.5. Residential Status of Hindu Undivided Family (HUF) [Section 6(2)]
3.6. Residential Status of Firm, Association of Persons (AOP), Body of Individuals (BOI) and of Other Persons (except Companies) [Section 6(2) and 6(4)]
3.7. Residential Status of a Company [Section 6(3)]
3.8. Incomes Deemed to Be Received in India [Section 7]
3.9. Section 9: Incomes which Accrue or Arise in India or are Deemed to Accrue or Arise in India
[CHAPTER-4]
Exempted Incomes
[Sections 10]
4.1. Section 10(1) – Agricultural Income
4.2. Section 10(2): Amounts Received by a Member from HUF Income
4.3. Section 10(2A)-Partner’s Share in the Total Income of a Partnership Firm
4.4. Section 10(4)-Income by way of Interest to Non-Resident.
4.5. Section 10(4B)-Income from Interest on Savings Certificates to Non-Resident.
4.6. Section 10(4C)-Interest on Bonds to Non-Resident
4.7. Section 10(4D)-Income of a Fund on Transfer of Capital Asset
4.8. Section 10(4E)-Income of Non-Resident from Transfer of Non-Deliverable Forward Contracts
4.9. Section 10(4F)-Income of Non-Resident by way of Royalty or Interest, on account of Lease of An Aircraft.
4.10. Section 10(4G)-Income received by a Non-Resident from Portfolio of Securities or Financial Products or Funds.
4.11. Section 10(4H)-Income of a Non-Resident or a Unit of an International Financial Services Centre (IFSC).
4.12. Section 10(5)-Leave Travel Concession (LTC)
4.13. Section 10(6)- Remuneration for Officials of Foreign Embassies
4.14. Section 10(6A)- Exemption for Foreign Companies on Royalty & Technical Service Fees.
4.15. Section 10(6B)- Exemption for Non-Residents & Foreign Companies on Income from Government
4.16. Section 10(6BB)- Exemption for Foreign Governments/Enterprises on Aircraft Leasing Income
4.17. Section 10(6C)- Exemption for Foreign Companies on Royalty/FTS Income
4.18. Section 10(6D)-Royalty or fees income to a non-resident
4.19. Section 10(7)- Tax Exemption for Allowances/Perquisites Paid Abroad by Government.
4.20. Section 10(8)- Exemption for Income under any Co-Operative Technical Assistance Programme and Projects.
4.21. Section 10(8A)- Exemption for Remuneration from International Organizations
4.22. Section 10(8B)- Exemption for Income in connection with any Technical Assistance Programme and Project
4.23. Section 10(10)- Exemption for Gratuity Income
4.24. Section 10(10A)- Exemption for Commuted Pension
4.25. Section 10(10AA)- Tax Exemption for Leave Encashment
4.26. Section 10(10B)- Tax Exemption for Retrenchment Compensation to a Workmen.
4.27. Section 10(10BC)- Tax Exemption for Disaster Compensation
4.28. Section 10(10C)- Tax Exemption on Voluntary Retirement Compensation
4.29. Section 10(10CC)- Tax Exemption on Perquisites Paid by Employer
4.30. Section 10(10D)- Tax Exemption on Life Insurance Policy Maturity/Death Benefits
4.31. Section 10(11)- Tax Exemption on Provident Fund Withdrawals
4.32. Section 10(11A)- Tax Exemption on Sukanya Samriddhi Account Withdrawals
4.33. Section 10(12)- Tax Exemption on Recognised Provident Fund (RPF) Withdrawals
4.34. Section 10(12A)- Tax Exemption on NPS (National Pension System) Withdrawals
4.35. Section 10(12B)- Tax Exemptions on Partial Withdrawals from the National Pension System (NPS) Trust for Employees.
4.36. Section 10(12C)- Tax Exemption on Payments from Agniveer Corpus Fund
4.37. Section 10(13)- Tax Exemptions on payments received from an Approved Superannuation Fund
4.38. Section 10(13A)- Tax Exemptions on House Rent Allowance (HRA) received by an Employee to meet Rental Expenses
4.39. Section 10(14)-Tax Exemption for Special Allowance received by Employee to meet Expenses incurred in performance of Official Duties.
4.40. Section 10(15)- Tax Exemption on Interest Income
4.41. Section 10(15A)- Tax Exemption on Lease Payments for Aircraft
4.42. Section 10(15B)- Tax Exemption on Lease Rentals of Cruise Ships
4.43. Section 10(16)- Tax Exemption on Scholarships
4.44. Section 10(17)- Tax Exemption on Allowances of MPs/MLAs
4.45. Section 10(17A)- Tax Exemption on Awards & Rewards
4.46. Section 10(18)- Tax Exemption on Pension for Gallantry Award Winners
4.47. Section 10(19)- Tax Exemption on Family Pension for Armed Forces’ Dependents
4.48. Section 10(20)- Tax Exemption for Local Authorities
4.49. Section 10(21)- Tax Exemption for Research Associations
4.50. Section 10(22B)- Tax Exemption for News Agencies
4.51. Section 10(23A)- Tax Exemption for Professional Associations
4.52. Section 10(23AA)-Tax Exemption on Income Received by Any Person on Behalf of a Regimental Fund
4.53. Section 10(23AAA)-Tax Exemption on Income received by any Person on behalf of a Fund
4.54. Section 10(23AAB)- Tax Exemption for Income of a Pension Fund
4.55. Section 10(23B)-Income of a Trust/Society for development of Khadi
4.56. Section 10(23BB)- Tax Exemption for the income of a Khadi and Village Industries Board
4.57. Section 10(23BBA)- Tax Exemption for the income of Anybody or Authority established for administration of Religious Place
4.58. Section 10(23BBB)- Tax Exemption for income earned by the European Economic Community (EEC) in India
4.59. Section 10(23BBC)- Tax Exemption for the Income of the SAARC Fund for Regional Projects
4.60. Section 10(23BBD)- Tax Exemption for the income of the ASOSAI-SECRETARIAT
4.61. Section 10(23BBE)- Tax Exemption for the income of the Insurance Regulatory and Development Authority (IRDA)
4.62. Section 10(23BBF)- Phased Tax Exemption for the North-Eastern Development Finance Corporation Ltd. (NEDFi)
4.63. Section 10(23BBG)- Full Tax Exemption for the income of the Central Electricity Regulatory Commission (CERC)
4.64. Section 10(23BBH)- Complete Tax Exemption for the income of Prasar Bharati (Broadcasting Corporation of India)
4.65. Section 10(23C)- Tax Exemption to certain Funds, Institutions, Universities, And Hospitals that are established for Charitable or Religious Purposes
4.66. Section 10(23D)- Tax Exemption for the income of Certain Mutual Fund
4.67. Section 10(23DA)- Tax Exemption for income earned by a Securitisation Trust from the Activity of Securitisation
4.68. Section 10(23EA)- Tax Exemption for income received by an Investor Protection Fund (IPF)
4.69. Section 10(23EC)- Tax Exemption for income received by an Investor Protection Fund (IPF)
4.70. Section 10(23ED)- Tax Exemption for income received by an Investor Protection Fund (IPF)
4.71. Section 10(23EE)- Tax Exemption for Specified Income of a Core Settlement Guarantee Fund (CSGF)
4.72. Section 10(23F)- Tax Exemption for Dividends and Long-Term Capital Gains earned by a Venture Capital Fund (VCF) or Venture Capital Company (VCC)
4.73. Section 10(23FB)- Tax Exemption for income earned by a Venture Capital Company (VCC) or Venture Capital Fund (VCF)
4.74. Section 10(23FBA)- Tax Exemption for Investment Funds
4.75. Section 10(23FBB)-Tax Exemption of Business Income earned by Unit Holders of an Investment Fund.
4.76. Section 10(23FBC)- Tax Exemption for income earned by a Unit Holder from a Specified Fund
4.77. Section 10(23FC)- Tax Exemption for Specific Types of income earned by a Business Trust.
4.78. Section 10(23FCA)- Tax Exemption for Rental Income earned by a Real Estate Investment Trust (REIT)
4.79. Section 10(23FE)-Tax Exemption for Income of a Specified Person in the nature of Dividend, Interest or Long-Term Capital Gain
4.80. Section 10(23FF)-Capital Gain Exemption on Transfer of Share of a Company Resident in India by Non-Resident
4.81. Section 10(24)- Tax Exemption for certain types of income earned by Registered Trade Unions
4.82. Section 10(25)- Tax Exemptions for income earned by various Retirement-Related Funds
4.83. Section 10(25A)- Tax Exemption for any income of the Employees’ State Insurance Fund (ESI Fund)
4.84. Section 10(26)- Tax Exemption for Members of Scheduled Tribes
4.85. Section 10(30)- Tax Exemption for Income from Subsidy to Members of Tea Board
4.86. Section 10(32)- Tax Exemption when a Minor Child’s income is Clubbed with that of a Parent under Section 64(1A)
4.87. Section 10(34A)- Tax Exemption for Shareholders on income received from a Buy-Back of Shares by a Domestic Company
4.88. Section 10(37)-Capital Gain Exemption on Transfer of Agricultural Land
[CHAPTER-5]
Income under the Head “Salaries”
[Sections 15 to 17]
5.1. Computation of Income under the head Income from “Salaries”
5.2. Section 15: Incomes Chargeable to Income-Tax Under the Head “Salaries”
5.3. Arrear of Salary: Taxation and Relief Under Section 89(1)
5.4. Profits in lieu of Salary [Section 17(3)]
5.5. Allowances Under the Head “Salaries”
5.5.1. House Rent Allowance (HRA) – Section 10(13A) & Rule 2A
5.5.2. Prescribed Allowances Exempt Under Section 10(14)
5.5.3. Entertainment Allowance: Tax Treatment & Example
5.5.4. Allowances Exempt for Certain Categories of Persons
5.5.5. Allowances which are Fully Taxable for Computation of Salary Income
5.6. Perquisites [(Section 17(2)]- Income under the head Salaries
5.6.1. Perquisites which are Taxable in the hands of All Categories of Employees
5.6.2. Perquisites which are Taxable only in the case of Specified Employees
5.6.3. Tax-free Perquisites (for all employees)
5.6.4. Perquisites- Taxability of Rent-Free or Concessional Accommodation Provided by Employer (Section 17(2))
5.6.5. Perquisites- Taxability of Hotel Accommodation Provided by Employer (Section 17(2))
5.6.6. Fringe Benefits & Amenities Taxable as Perquisites for All Employees
(A) Taxability of Interest-Free or Concessional Loans provided by Employer [Rule 3(7)(i)]
(B) Taxability of Holiday Expenses Paid by Employer [Rule 3(7)(ii)]
(C) Taxability of Free Food & Non-Alcoholic Beverages provided by Employer [Rule 3(7)(iii)]
(D) Taxability of Gifts, Vouchers & Tokens provided by Employer [Rule 3(7)(iv)]
(E) Taxability of Gifts, Vouchers, or Tokens Under Rule 3(7)(iv) provided by an Employer
(F) Taxability of Credit Card Expenses Under Rule 3(7)(v) incurred by an Employer
(G) Taxability of Club Membership & Expenses [Rule 3(7)(vi)] provided by an Employer
(H) Benefit derived by an Employee from Using an Employer’s Movable Assets [Rule 3(7)(vii)]
(I) Taxability of Transfer of Movable Assets (e.g., Cars, Electronics, Furniture) Under Rule 3(7)(viii)
(J) Taxability of Other Benefits & Amenities Under Rule 3(7)(ix) provided by Employer
5.6.7. Valuation of Motor Car/Other Vehicles Perquisites Under Rule 3(2)
5.6.8. Valuation of Various Perquisites – for Calculating Salary Income
(A) Valuation of Perquisites: Sweeper, Gardener, Watchman, or Personal Attendant [Rule 3(3)]
(B) Valuation of Perquisites: Supply of Gas, Electric Energy, or Water for Household Consumption [Rule 3(4)]
(C) Valuation of Free/Concessional Educational Facilities [Rule 3(5)]
(D) Valuation of Free/Concessional Journeys for Transport Employees [Rule 3(6)]
(E) Valuation of any Specified Security or Sweat Equity Shares
(F) Taxation of Employer Contributions to RPF, NPS & Superannuation Fund [Section 17(2)(vii)]
(G) Treatment of Medical Facilities [Proviso to Section 17(2)]
(H) Treatment of Leave Travel Concession/Assistance (LTC/LTA) [Section 10(5)]
(I) Profit in Lieu of Salary [Section 17(3)]
5.7. Valuation of Retirement Benefits – for Calculating Taxable Salary Income
5.7.1. Taxability of Gratuity Received by an Employee
5.7.2. Tax Treatment of Pension [Section 17(1)(ii)]
5.7.3. Tax Treatment of Leave Salary (Leave Encashment)
5.7.4. Tax Treatment of “Retrenchment Compensation” [Section 10(10B)]
5.7.5. Tax Treatment of Compensation Received on Voluntary Retirement [Section 10(10C)]
5.7.6. Employer Contribution to Recognised Provident Fund (RPF) – Tax Rules & Limits
(A) Interest Is Credited to Employees’ Recognised Provident Fund (RPF) – Tax Rules & Limits
(B) Taxability of Transferred Balance from URPF to RPF
5.8. Deductions from Salaries Under Section 16
5.9. Tax Treatment of Provident Fund (PF) Contributions, Interest, And Withdrawals for Calculating Taxable Salary Income
5.10. Tax Relief Under Section 89(1) Read with Rule 21A, for Salary Received in Arrears or In Advance
(A) Tax Relief on Salary Received in Arrears or Advance (Section 89(1) with Rule 21A)
(B) Tax Treatment of Non-Exempt Gratuity (Under Section 89(1) with Rule 21A (3))
(C) Tax Relief on Taxable Termination Compensation [Rule 21A (4)]
(D) Tax Relief on Commuted Pension Under Rule 21A(5)
(E) Tax Relief Under Rule 21A (6) for Other Payments Not Covered Under Rule 21A (2)-(5)
5.11. Tax Planning for Retirement of Employees
- Tax Treatment of Retirement Benefits
- Tax-Saving Investment Options for Retirement
- Tax Planning Strategies for Employees
- Common Mistakes to Avoid
[CHAPTER-6]
“Income from House Property”
[Sections 22 to 27]
6.1. Chargeability & Basic of Charges of Income from House Property (Section 22)
6.2. Essential Conditions for Taxing Income Under “Income from House Property”
6.3. ‘Annual Value’ of House Property & It’s Computation under Income Tax Act, 1961
6.4. Treatment of Unrealised Rent from House Property [Explanation to Section 23(1)]
6.5. Computation of Income from a Self-Occupied Residential House Property [Section 23(2), (3), (4)]
6.6. Deductions from Income from House Property (Section 24)
6.7. Computation of Income from House Property (Partly Let Out & Partly Self-Occupied)
6.8. No Notional Income for House Property held as Stock-in-Trade [Section 23(5)]
6.9. Interest when not Deductible from “Income from House Property” [section 25]
6.10. Special Provisions for Arrears of Rent and Unrealised Rent (Section 25A)
6.11. Property Owned by Co-owners [Section 26]
6.12. Can Annual Value (Net Annual Value) of a House Property be Negative?
6.13. Can There Be a Loss Under the Head “Income from House Property”?
[CHAPTER-7]
“PROFITS AND GAINS OF BUSINESS AND PROFESSION”
[Section 28 to 44D]
7.1. Chargeability & Scope of Income Under “Profits and Gains of Business or Profession” (Section 28)
7.2. Table Showing How to Compute “Profits and Gains of Business and Profession” ((As per Sections 28 to 44D)
7.3. Definition of “Business” and “Profession” under the Income Tax Act, 1961.
7.4. Incomes Chargeable Under “Profits and Gains of Business or Profession” (PGBP) [Section 28]
7.5. Method of Accounting Under Section 145 & Income Computation and Disclosure Standards (ICDS)
7.6. Expenses Expressly Allowed as Deductions [Sections 30 to 37] – Complete Guide
7.6.1. Deductions for Rent, Repairs & Insurance of Business Premises [Section 30]
7.6.2. Deductions for Repairs & Insurance of Machinery, Plant and Furniture [Section 31]
7.6.3. Deduction of Depreciation Under Section 32 – Comprehensive Guide
(A) Special Provisions for Depreciation in Certain Cases
(B) Carry Forward and Set Off of Unabsorbed Depreciation [Section 32(2)]
7.6.4. Tea, Coffee, and Rubber Development Accounts [Section 33AB]
7.6.5. Site Restoration Fund [Section 33ABA]
7.6.6. Expenditure on Scientific Research (Section 35)
7.6.7. Expenditure for Obtaining License to Operate Telecommunication Services & Amortization of Spectrum Fees
7.6.8. Deduction for Expenditure on Specified Businesses [Section 35AD]
7.6.9. Deduction for Expenditure on Rural Development Programmes [Section 35CCA]
7.6.10. Deduction for Agricultural Extension Projects [Section 35CCC]
7.6.11. Deduction for Expenditure on Skill Development Projects [Section 35CCD]
7.6.12. Amortization of Preliminary Expenses [Section 35D & Rule 6AB]
7.6.13. Amortization of Amalgamation/Demerger Expenses [Section 35DD]
7.6.14. Amortization of Voluntary Retirement Scheme (VRS) Expenditure [Section 35DDA]
7.6.15. Deduction for Expenditure on Mineral Prospecting [Section 35E & Rule 6AB]
7.7. Section 36: Other Deductions (Profits & Gains of Business/Profession)
7.7.1. Insurance Premium on Stocks [Section 36(1)(i)]
7.7.2. Insurance Premium for Cattle [Section 36(1)(ia)]
7.7.3. Insurance Premium for Employee Health [Section 36(1)(ib)]
7.7.4. Bonus or Commission to Employees [Section 36(1)(ii)]
7.7.5. Interest on Borrowed Capital [Section 36(1)(iii)]
7.7.6. Discount on Zero-Coupon Bonds (ZCBs) [Section 36(1)(iiia)]
7.7.7. Employer’s Contribution to Recognized Provident Fund (PF) or Approved Superannuation Fund [Section 36(1)(iv)]
7.7.8. Employer’s Contribution to Pension Scheme [Section 36(1)(iva)]
7.7.9. Employer’s Contribution to Approved Gratuity Fund [Section 36(1)(v)]
7.7.10. Employee Contributions to Welfare Funds [Section 36(1)(va)]
7.7.11. Deduction for Dead or Permanently Useless Animals [Section 36(1)(vi)]
7.7.12. Bad Debts Deduction [Section 36(1)(vii)]
7.7.13. Provision for Bad and Doubtful Debts (Banks/Financial Institutions) [Section 36(1)(viia)]
7.7.14. Special Reserve for Financial Institutions [Section 36(1)(viii)]
7.7.15. Deduction for Family Planning Expenditure [Section 36(1)(ix)]
7.7.16. Deduction for Securities Transaction Tax (STT) [Section 36(1)(xv)]
7.7.17. Deduction for Commodities Transaction Tax (CTT) [Section 36(1)(xvi)]
7.7.18. Marked-to-Market (MTM) Losses & Expected Losses [Section 36(1)(xviii)]
7.8. General Deductions [Section 37(1)]
7.9. Advertisement to Political Parties [Section 37(2B)] – Applicability to “Profits and Gains of Business or Profession”
7.10. Section 38: Disallowance for Assets Not Exclusively Used for Business
7.11. Amounts Not Deductible [Section 40]
7.12. Expenses or Payments Not Deductible Under Section 40A
7.13. Section 43B: Deductions Allowed Only on Actual Payment
7.14. Section 43CA: Special Provision for Full Value of Consideration in Transfer of Non-Capital Assets
7.15. Section 43CB: Computation of Income from Construction and Service Contracts
7.16. Deemed Profits Chargeable to Tax
(A) Recovery of Allowances/Deductions Previously Claimed [Section 41(1)]
(B) Balancing Charge on Power Generation Assets [Section 41(2)]
(C) Tax Treatment of Sale of Capital Assets Used for Scientific Research [Section 41(3)]
(D) Section 41(4): Recovery of Bad Debts Previously Allowed as Deduction
(E) Section 41(4A): Taxation of Amounts Withdrawn from Special Reserve by Financial Institutions
(F) Deemed Income in Case of Discontinued Business or Profession [Section 176(3A) & (4)]
7.17. Maintenance of Accounts under Section 44AA & Rule 6F
(A) Persons Carrying on Specified Professions [Section 44AA (1)]
(B) Maintenance of Accounts for Non-Specified Professions & Businesses [Section 44AA(2)]
(C) When Maintenance of Books of Accounts is NOT Required
7.18. Compulsory Tax Audit Under Section 44AB – Profits and Gains of Business and Profession
(A) Section 44AB(a): Compulsory Tax Audit for Businesses Exceeding Turnover Threshold
(B) Section 44AB(b): Compulsory Tax Audit for Professionals Exceeding Receipts Threshold
(C) Section 44AB(c): Compulsory Tax Audit for Businesses Declaring Lower Income Than Presumptive Rate
(D) Section 44AB(d): Compulsory Tax Audit for Professionals Declaring Lower Income Than Presumptive Rate
(E) Section 44AB(e): Compulsory Tax Audit for Businesses Engaged in Specified Transactions
7.19. Compulsory Tax Audit Under Section 44AB Even if Accounts Are Audited Under Other Laws
7.20. Rule 6G: Report of Audit of Accounts under Section 44AB
7.21. Section 44AD: Special Provisions for Computing Profits & Gains of Eligible Businesses *(Excluding Businesses Covered Under Section 44AE – Transport Operators) *
7.22. Section 44ADA: Presumptive Taxation Scheme for Professionals
7.23. Section 44AE: Presumptive Taxation Scheme for Goods Carriage Businesses
7.24. Tax Implications of Specific Management Decisions in Business
[CHAPTER-8]
Income Under the Head “Capital Gains”
(Sections 45 to 55A)
8.1. Section 45(1): Basis of Charge for Capital Gains
8.2. Capital Asset [Section 2(14)] – Definition & Tax Implications for Capital Gains
8.3. Types of Capital Assets for Capital Gains Taxation
8.4. Transfer of Capital Asset for Calculation of Capital Gains
8.5. Transactions Not Treated as “Transfer” of Capital Assets [Sections 46 & 47]
8.6. Computation of Capital Gains [Section 48]
- Computation of Short-term Capital Gains
- Computation of Long-term Capital Gains
8.7. Full Value of Consideration for Capital Asset Transfer
8.8. Expenses on Transfer of Capital Asset (Deductible from Capital Gains)
8.9. Section 49– Cost with Reference to Certain Modes of Acquisition
8.10. Section 55(2) – Cost of Acquisition of Capital Asset for Computing Capital Gain
(A) Cost of Acquisition of Assets acquired before 1.4.2001 [Section 55(2)(b)]
(B) Cost of Acquisition for Goodwill, Trademarks, Business Rights, etc. [Section 55(2)(a)]
(C) Cost of Acquisition of Right Shares [Section 55(2)(aa)]
(D) Cost of Acquisition of Bonus Shares or Financial Assets Allotted Without Payment [Section 55(2)(ac)(iiia)]
(E) Cost of Acquisition for Computing Long-Term Capital Gains (LTCG) under Section 112A [Section 55(2) (ac)]
(F) Cost of Acquisition for Depreciable Assets [Section 50]
8.11. Cost of Improvement [Section 55(1)(b)]
8.12. Indexed Cost of Acquisition [Explanation (iii) to Section 48]
8.13. Indexed Cost of Improvement [Explanation (iv) to Section 48]
8.14. Computation of Capital Gain in Certain Special Cases
8.14.1. Taxation of Zero-Coupon Bonds as “Capital Gains”
8.14.2. Capital Gains on Insurance Compensation for Damaged/Destroyed Assets [Section 45(1A)]
8.14.3. Capital Gains on High-Premium ULIP Maturity [Section 45(1B)]
8.14.4. Capital Gains on Conversion of Capital Asset into Stock-in-Trade or vice versa [Section 45(2)]
8.14.5. Capital Gains on Transfer of Capital Asset by a Partner to a Firm/AOP/BOI [Section 45(3)] 438
8.14.6. Capital Gains on Dissolution/Reconstitution of Specified Entities [Sections 45(4) & 45(4A)]
8.14.7. Capital Gains on Compulsory Acquisition of Assets [Section 45(5)]
8.14.8. Special Provision for Capital Gains in Joint Development Agreements (JDAs) [Section 45(5A)]
8.14.9. Capital Gains on Conversion of Debentures into Shares [Sections 47(x), 49(2A), and Rule 8AA]
8.14.10. Tax Treatment of Conversion of Preference Shares into Equity Shares [Sections 47(xb), 49(2AE), and Explanation 1 to Section 2(42A)]
8.14.11. Capital Gains on Distribution of Assets by Companies in Liquidation [Section 46]
8.14.12. Capital Gains on Sale of Goodwill, Trademarks, Tenancy Rights & Business Rights
8.14.13. Capital Gains on Transfer of Depreciable Assets [Section 50]
8.14.14. Capital Gains on Depreciable Assets of Electricity Companies [Section 50A]
8.14.15. Special Provisions for Capital Gains in Slump Sale [Section 50B]
8.14.16. Computation of Capital Gains in Real Estate Transactions [Section 50C]
8.14.17. Fair Market Value (FMV) as Full Consideration for Unquoted Shares [Section 50CA]
8.14.18. Fair Market Value (FMV) as Full Consideration in Certain Cases [Section 50D]
8.14.19. Capital Gains on Buyback of Shares [Section 46A]
8.14.20. Separate Computation of Capital Gains for Land vs. Self-Constructed Building
8.14.21. Capital Gains on Transfer of Mutual Fund Units in a Consolidation Scheme [Sections 47(xviii), 47(2AD), and Explanation 1 to Section 2(42A)]
8.14.22. Tax Treatment of Mutual Fund Plan Consolidation [Section 47(xix)]
8.15. Capital Gains Tax for Non-Residents on Transfer of Shares/Debentures [Proviso to Section 48 + Rule 115A]
8.15.1. Exemption of Long-Term Capital Gains for NRIs on Transfer of Foreign Exchange Assets [Section 115F]
8.15.2. Option to Opt Out of Section 115F Benefits [Section 115-I]
8.16. Types of Capital Gains Exemptions Under the Income Tax Act, 1961
8.17. Capital Gains Exemption on Sale of Residential House Property [Section 54]
8.18. Exemption of Capital Gains on Transfer of Agricultural Land [Section 54B]
8.19. Exemption of Capital Gains on Compulsory Acquisition of Industrial Land/Building [Section 54D]
8.20. Exemption of Capital Gains on Investment in Specified Bonds [Section 54EC]
8.21. Exemption of Capital Gains on Sale of Any Asset (Except Residential House) [Section 54F]
8.22. Exemption of Capital Gains on Shifting Industrial Undertaking from Urban Area [Section 54G]
8.23. Exemption of Capital Gains on Shifting Industrial Undertaking to SEZ [Section 54GA]
8.24. Exemption of Long-Term Capital Gains on Investment in Manufacturing SME [Section 54GB]
8.25. Extension of Time for Reinvestment in Case of Compulsory Acquisition [Section 54H]
8.26. Short-Term Capital Gains Tax on Equity Shares and Equity-Oriented Funds (Section 111A)
8.27. Computation of Tax on Long-Term Capital Gains (Other Than Section 112A Assets) Under Section 112
8.28. Tax Rates on Long-Term Capital Gains (LTCG) For Assets Not Covered Under Section 112A (i.e., Non-Equity Assets Like Real Estate, Unlisted Shares, Debt Funds, Etc.)
8.29. Tax on Long-Term Capital Gains (LTCG) Under Section 112A
8.30. Section 115F: Exemption on Long-Term Capital Gains from Foreign Exchange Assets for NRIs
[CHAPTER-9]
Income under the Head “Income from Other Sources”
[Section 56 to 59]
9.1. Specific Incomes included under ‘Income from Other Sources’ [Section 56(2)]
(A) Other Incomes Which Are Normally Included Under the Head ‘Income from Other Sources’
9.2. Key Provisions of Section 56(1): Chargeability of Income from Other Sources
9.3. Taxability of Dividends under Section 56(2)(i) as “Income from Other Sources”
9.4. Taxability of Winnings from Lotteries, Crossword Puzzles, Horse Races & Card Games [Section 56(2)(ib)]
9.5. Taxability of Interest on Securities under Section 56(2) (id) as “Income from Other Sources”
9.6. Taxability of Income from Letting Out Machinery, Plant or Furniture [Section 56(2)(ii)]
9.7. Taxability of Gifts (Money & Property) under Section 56(2)(x) as “Income from Other Sources”
9.8. Share Premium Received in Excess of The Fair Market Value (FMV) By Closely Held Company [section 56(2) (viib)]
9.9. Taxability of Interest on Compensation or Enhanced Compensation Under Section 56(2)(viii)
9.10. Taxability of Forfeited Advance Money for Transfer of Capital Assets Under Section 56(2)(ix)
9.11. Tax Treatment of Family Pension Payments Received by Legal Heirs of a Deceased Employee
9.12. Tax Treatment of Employee Welfare Fund Contributions under Section 56(2)(ic)
9.13. Deductions Allowed from “Income from Other Sources” [Section 57]
9.14. Section 58: Amounts Not Deductible from “Income from Other Sources”
9.15. Deemed Income Chargeable to Tax [Section 59]
[CHAPTER-10]
Clubbing of Income
[Sections 60 to 65]
10.1. Transfer of Income Without Transfer of Asset [Section 60]
10.2. Revocable Transfer of Assets [Section 61]
10.3. When a Transfer is Considered Revocable [Section 63]
10.4. Section 62: Irrevocable Transfers for a Specified Period
10.5. Clubbing of Income [Section 64] – Income of Spouse, Minor Child & Others Included in Assessee’ s Total Income
10.5.1. Income of Spouse [Section 64(1)(ii)]
10.5.2. Income of Minor Child [Section 64(1A)]
10.5.3. Income from Assets Transferred to Son’s Wife/Daughter-in-Law [Section 64(1)(vi)]
10.5.4. Income from Assets Transferred to a Person for the Benefit of Spouse [Section 64(1)(iv)]
10.5.5. Income from Assets Transferred for the Benefit of Spouse [Section 64(1)(vii)]
10.5.6. Income from Assets Transferred to any person for the Benefit of Son’s wife [Section 64(1)(viii)]
10.5.7. Conversion of Self-Acquired Property into HUF Property [Section 64(2)]
10.6. Clubbing of Minor Child’s Income [Section 64(1A)] – Complete Guide
10.7. Clubbing of Income from Self-Acquired Property Converted to HUF Property [Section 64(2)] 536
10.8. Tax Treatment of Clubbed Income – Assessment Heads
10.9. Liability of Person in respect of Income Included in the Income of Another Person [Section 65]
10.10. Assessment of Clubbed Income under Income Tax Act.
[CHAPTER-11]
Unexplained Cash Credits, Investments, Money, etc.
[Section 68 to 69D]
11.1. Unexplained Cash Credits Under Section 68
11.2. Unexplained Investments Under Section 69
11.3. Unexplained Money, Jewellery, or Other Assets Under Section 69A
11.4. Undisclosed Investments (Undervalued Assets) Under Section 69B
11.5. Unexplained Expenditure Under Section 69C
11.6. Section 69D: Amount Borrowed or Repaid on Hundi
11.7. Section 115BBE: Taxation of Unexplained Income in Business & Profession
[CHAPTER-12]
Set Off or Carry Forward and Set Off of Losses
[Section 70 to 80]
12.1. Set Off of Loss from One Source Against Income from Another Source Under the Same Head of Income [Section 70]
12.2. Set Off of Loss from one Head against income from another Head (Inter-Head Adjustment) [Section 71]
12.3. Carry Forward and Set Off of Losses under Income Tax Act
(A) Compulsory Filing of Loss Returns [Section 80]
12.4. Carry Forward and Set Off of Loss from House Property [Section 71B]
12.5. Carry Forward and Set Off of Business Losses [Section 72]
12.6. Set Off and Carry Forward of Speculation Losses [Section 73]
12.7. Set Off and Carry Forward of Losses in Specified Businesses [Section 73A]
12.8. Carry Forward and Set-Off of Capital Losses [Section 74]
12.9. Set Off and Carry Forward of Losses from Owning/Maintaining Race Horses [Section 74A]
12.10. Brought Forward Losses Must Be Set Off in the Immediately Succeeding Year/Years.
- For Businesses
- For Capital Gains
12.11. Special Provisions for Set-Off of Losses Under Section 115BAC (New Tax Regime)
12.12. Carry Forward and Set Off of The Accumulated Business Losses and Unabsorbed Depreciation Allowance in Amalgamation/Demerger [Section 72A]
12.13. Tax Treatment of Losses in Partnership Firms [Sections 75-77]
12.14. Carry Forward and Set Off of Losses on Succession of Any Person [Section 78(2)]
12.15. Carry Forward and Set-Off of Losses in Certain Companies [Section 79]
[CHAPTER-13]
Deduction in Computing Total Income Under Chapter VI-A
(Sections 80A to 80U)
13.1. Basic Rules of Deductions Under Chapter VI-A (Sections 80A, 80AB, 80AC)
DEDUCTION IN RESPECT OF CERTAIN PAYMENTS
13.2. Section 80C: Deduction for Investments & Payments (Up to ₹1.5 Lakh)
13.3. Section 80CCC: Deduction for Contribution to Pension Funds
13.4. Section 80CCD: Deduction for Contributions to Pension Schemes (NPS & Atal Pension Yojana)
13.5. Section 80CCE: Combined Limit for Deductions under 80C, 80CCC & 80CCD
13.6. Section 80D: Deduction for Health Insurance Premium & Medical Expenses
13.7. Section 80DD: Deduction for Maintenance & Medical Treatment of Disabled Dependents
13.8. Section 80DDB: Deduction for Medical Treatment of Specified Critical Illnesses
13.9. Section 80E: Deduction for Interest on Education Loan
13.10. Section 80EE: Deduction for Interest on Home Loan (First-Time Homebuyers)
13.11. Section 80EEA: Deduction for Interest on Affordable Housing Loan
13.12. Section 80EEB: Deduction for Interest on Electric Vehicle (EV) Loan
13.13. Section 80G: Deduction for Donations to Charitable Institutions
13.14. Section 80GG: Deduction for Rent Paid (When HRA is Not Received)
13.15. Section 80GGA: Deduction for Donations to Scientific Research & Rural Development
13.16. Section 80GGB. Deduction in Respect of Contributions Given by Companies to Political Parties
13.17. Section 80GGC: Deduction for Contributions to Political Parties
DEDUCTION IN RESPECT OF CERTAIN INCOMES
13.18. Section 80-IA: Tax Deduction for Infrastructure & Industrial Projects
13.19. Section 80-IAC: Tax Deduction for Eligible Start-ups
13.20. Section 80-IB: Tax Deduction for Specific Industrial Undertakings
13.21. Section 80-IBA: Tax Deduction for Affordable Housing Projects
13.22. Section 80JJA: Deduction for Profits from Bio-Degradable Waste Business
13.23. Section 80JJAA: Deduction for Employment Generation
13.24. Section 80LA: Tax Deduction for Offshore Banking Units (OBUs) & IFSC Units
13.25. Section 80P: Tax Deduction for Cooperative Societies
13.26. Section 80PA: Deduction for Producer Companies
13.27. Section 80QQB: Deduction for Royalty Income of Authors
13.28. Section 80RRB: Deduction for Patent Royalty Income
DEDUCTION IN RESPECT OF OTHER INCOMES
13.29. Section 80TTA: Deduction for Savings Account Interest
13.30. Section 80TTB: Deduction for Senior Citizens’ Deposit Interest
OTHER DEDUCTIOINS
13.31. Section 80U: Deduction for Persons with Disabilities
[CHAPTER-14]
Agricultural Income & its Tax Treatment [Sections 1(1A) and 10(1)]
[CHAPTER-15]
‘Assessment’ of Various Categories of Persons
15.1. Assessment of an Individual.
15.1.1. Incomes Received from Firm/AOP/HUF which are Exempt in the hands of an Individual.
15.1.2. [Section 115BAC]- New Tax Regime for Individuals
15.1.3. [Section 87A] – Tax Rebate for Resident Individuals
15.1.4. Alternate Minimum Tax (AMT) on Non-Corporate Taxpayers [Sections 115JC to 115JF]
15.1.5. Computation of Total Income and Tax Liability for an Individual (AY 2025-26)
15.2. Assessment of Hindu Undivided Family (HUF) under Income Tax Act, 1961
15.2.1. Partition of Hindu Undivided Family (HUF) – Tax & Legal Implications
15.2.2. Assessment after Partition of HUF [Section 171]
15.3. Assessment of Firms (Including LLPs) under Income Tax Act, 1961
15.3.1. Salient Features of Assessment of Firms (Including LLPs) under Income Tax Act
15.3.2. Set Off and Carry Forward of Losses for Firms
15.3.3. Tax Treatment of Partner’s Income from Firm/LLP
15.3.4. Computation of Total Income of a Firm/LLP (AY 2025-26)
15.4. Assessment of AOP/BOI under Income Tax Act, 1961
15.4.1. Assessment of AOP/BOI with Indeterminate Member Shares [Section 167B (1)]
15.4.2. Tax Treatment of Member’s Share in AOP/BOI Income
15.4.3. Computation of Member’s Share in AOP/BOI Income (Section 67A) – Determinate Shares
15.5. Taxation and Assessment of Companies under the Income Tax Act, 1961
15.5.1. Types, Definitions, And Residential Status of Companies Under the Income Tax Act, 1961
15.5.2. Special Provisions for Foreign Companies Deemed Resident in India (Section 115JH)
15.5.3. Special Provisions Applicable to Closely Held Companies (Public Not Substantially Interested)
15.5.4. Tax on Dividends from Specified Foreign Companies [Section 115BBD]
15.5.5. Tax on Total Income of a Company under Income Tax Act, 1961
15.5.6. Tax on Income of Certain Manufacturing Domestic Companies [Section 115BA]
15.5.7. Special Provisions for Tax on Income of Certain Domestic Companies under Section 115BAA
15.5.8. Special Provisions for New Manufacturing Domestic Companies under Section 115BAB
15.5.9. Provisions of MAT (Minimum Alternate Tax) Under Section 115JB
15.5.10. MAT Credit Mechanism Under Section 115JAA (Tax Credit for MAT Paid Against Future Tax Liability)
15.5.11. Preparation of Statement of Profit & Loss Under Section 115JB (2) for MAT Calculation
15.5.12. Computation of Book Profit Under Explanation 1 to Section 115JB (1) & (2)
15.5.13. Deduction of Brought Forward Losses & Unabsorbed Depreciation from Book Profits (Section 115JB)
15.5.14. Furnishing of Accountant’s Report Under Section 115JB (4) & Rule 40B
15.5.15. Special Provisions for Tax on Buyback of Shares (Sections 115QA to 115QC)
[CHAPTER-16]
Assessment of Trusts
[Section 11 to 13]
16.1. Which Income will be Exempt under Section 11
16.2. Conditions to be Satisfied for Claiming Exemption Under Section 11
16.3. Steps for Formation of a Charitable / Religious Trust in India
16.4. Draft Trust Deed for A Charitable and Religious Trust
16.5. Registration Process for a Charitable & Religious Trust
16.6. Cancellation of Registration for Charitable & Religious Trusts
16.7. Belated Filing of Application for Registration of a Charitable & Religious Trust
16.8. Accumulation of Income in Excess of 15% of the income earned [Section 11(2) and Rule 17]
16.9. Treatment of Business Income of a Charitable/Religious Trust
16.10. Conditions for Applicability of Sections 11 and 12
16.11. Commissioner’s Power to Cancel Registration of Charitable & Religious Trusts
16.12. Section 13: Cases Where Section 11 Exemption Does Not Apply
16.13. Tax Exemptions for Funds/Institutions of National Importance [Section 10(23C) & Rules 2C/2CA]
16.14. Taxability of Income of Charitable / Religious Trusts Under Section 164(2)
16.15. Assessment of Charitable Organizations When Commercial Receipts Exceed 20% Threshold [Section 13(8)]
16.16. Tax Implications When a Charitable Institution Ceases to Exist or Converts to Non-Charitable Status (Chapter XII-EB: Sections 115TB to 115TF0
[CHAPTER-17]
Return of Income and Procedure of Assessment
[Section 139 to 154]
17.1. Submission of Return of Income [Section 139(1)]
17.1.1. Compulsory Filing of Return for Assets Located Outside India [Fourth Proviso to Section 139(1)]
17.1.2. Compulsory Filing of Return Under Sixth Proviso to Section 139(1)
17.1.3. Mandatory ITR Filing Under Seventh Proviso to Section 139(1): High-Value Transactions
17.1.4. Due Dates for Furnishing the Return of Income Under Section 139(1)
17.1.5. Consequences of Not Filing Income Tax Return (ITR) on Time or Not Furnishing ITR at All
17.2. Return of Income for Charitable Trusts & Institutions [Section 139(4A)]
17.3. Return of Income for Political Parties [Section 139(4B)]
17.4. Return of Income for Certain Associations & Institutions [Section 139(4C)]
17.5. Mandatory Return Filing for Research Institutions [Section 139(4D)]
17.6. Form and Manner of Furnishing Return of Income [Rule 12 of Income Tax Rules, 1962]
17.6.1. Preparation of Return by Authorised Representative [Rule 12A]
17.7. Return of Loss [Section 139(3) read with Section 80]
17.7.1. Power to Condon Delay in Filing a Return of Loss [Circular No. 9/2015, dated 9.6.2015]
17.8. Belated Return [Section 139(4)]: Key Rules, Penalties & Filing Process
17.9. Revised Return [Section 139(5)]: A Complete Guide
17.9.1. Can Returns Filed Under Special Provisions (Sections 139(3), 139(4A), 139(4B), 139(4C), or 139(4D) Be Revised?
17.9.2. Can a Belated Return Under Section 139(4) Be Revised?
17.9.3. Can a Return Filed Within the Extended Due Date (by CBDT) Be Revised?
17.9.4. Can a Revised Return Be Further Revised?
17.9.5. Revised Return Substitutes the Original Return: Key Implications
17.10. Particulars to be Furnished with the Return of Income [Sections 139(6) & 139(6A)]
17.11. When a Return of Income is Regarded as Defective [Explanation to Section 139]
17.12. Power of Board to Dispense with Furnishing Documents with Return [Section 139C]
17.13. Filing of Return in Electronic Form [Section 139D]
17.14. Submission of Returns through Tax Return Preparers (TRPs) [Section 139B]
17.15. Verification of Income Tax Returns [Section 140]
17.16. Self-Assessment Under Section 140A
17.16.1. Consequences of Failure to Pay Self-Assessment Tax (Whole or Part)
17.17. Inquiry Before Assessment [Section 142]
17.18. Estimates by Valuation Officer in Certain Cases [Section 142A]
17.19. Section 142B: Faceless Inquiry, Special Audit, and Valuation
17.20. Processing of Returns under Section 143(1) – Summary Assessment
17.20.1. Centralized Processing Scheme for Income Tax Returns [Sections 143(1A) & 143(1B)]
17.20.2. Withholding of Refund in Certain Cases [Section 241A]
17.21. Regular / Scrutiny Assessment [Section 143(3)]
17.21.1. Compulsory Service of Notice [Section 143(2)]
17.21.2. Amendments to Section 282A: Authentication of Notices and Other Documents
17.21.3. Section 292BB: Notice Deemed Valid in Certain Circumstances
17.21.4. Consequences of Failure to Comply with Notice Under Section 143(2)
17.22. Assessment after Evidence [Section 143(3)]
17.22.1. Deduction Not to Be Allowed If Claim Is Not Made in The Return of Income
17.22.2. Assessment of Certain Institutions Without Granting Section 10 Exemptions [First Proviso to Section 143(3)]
17.22.3. Assessment of Universities/Colleges After Withdrawal of Exemption Under Section 35(1)(ii)/(iii) [Second Proviso to Section 143(3)]
17.22.4. Impact of Commercial Receipts on Tax Exemptions for Charitable Organizations [Third Proviso to Section 143(3)]
17.22.5. New Scheme for Scrutiny Assessment [Sections 143(3A), 143(3B), and 143(3C)] 827
17.23. Best Judgment Assessment [Section 144]
17.23.1. Opportunity Must Be Given to The Assessee In Best Judgment Assessment [Section 144]
17.23.2. Assessment on Rejection of Accounts in Best Judgment Assessment [Section 144]
17.24. Section 144A: Power of Joint Commissioner to Issue Directions in Certain Cases
17.25. Faceless Assessment [Section 144B] [Applicable w.e.f. 1.4.2021]
17.26. Income Escaping Assessment [Section 147]
17.27. Faceless Assessment of Income Escaping Assessment [Section 151A]
17.28. Time Limit for Completion of All Assessments and Reassessment [Section 153]
17.28.1. Period of Limitation to Exclude Certain Periods [Explanation 1 to Section 153]
17.29. Section 154: Rectification of Mistakes in Income Tax Orders
17.30. Section 156 of the Income Tax Act, 1961: Notice of Demand
17.31. Intimation of Loss [Section 157 of the Income Tax Act, 1961]
17.32. Faceless Rectification, Amendments and Issuance of Notice or Intimation (Section 157A)
[CHAPTER-18]
Permanent Account Number and Aadhaar Number
[Section 139A and 139AA]
18.1. Permanent Account Number [Section 139A And Rule 114]
18.1.1. Power Delegated to The Central Government to Notify Class or Classes of Persons for Whom It Will Be Obligatory to Apply for Permanent Account Number (PAN) [Section 139A(1A)]
18.1.2. Aadhaar Number to Be Intimated [Rule 114(5)]
18.1.3. PAN to Be Quoted in Certain Cases [Section 139A (5)]
18.1.4. Quoting of PAN in Documents Pertaining to Such Transactions as May Be Prescribed by The Board [Section 139A(5)(C)]
18.1.5. Duty of The Person Receiving Any Document Relating to The Transactions Where Quoting of PAN Is Compulsory [Section 139A (6)]
18.1.6. Intimation of PAN in Certain Cases and Obligation of The Person to Whom the PAN is Intimated [Section 139A(5)]
18.1.7. Inter-Changeability of PAN & Aadhaar And the Mandatory Requirements [Section 139A(5E)].
18.1.8. Quoting and Authentication of PAN in The Documents Pertaining to Prescribed Transactions [Section 139A(6A)]
18.1.9. Section 139A(6B) – Obligation to Verify PAN / Aadhaar in Prescribed Transactions (Effective from September 1, 2019)
18.1.10. Consequences for Non-Compliance with Section 139A, As Penalized Under Section 272B (1)
18.1.11. Penalty for Quoting or Intimating False PAN [Section 272B (2)]
18.2. Quoting and Linking of Aadhaar Numbers with PAN [Section 139AA]
[CHAPTER-19]
Search, Seizure & Survey and Special Procedure for Assessment of Search Cases
[Sections 132, 132A, 132B, 133A, 153A to 153D)
19.1. Search and Seizure [Section 132]
19.2. Power to Requisition Books of Account, etc. [Section 132A]
19.3. Application of Seized or Requisitioned Assets [Section 132B]
19.4. Procedure for Assessment of Search Cases [Sections 153A, 153B, 153C & 153D]
19.4.1. Notice for Filing Return Under Section 153A(1)(a)
19.4.2. Assessment in Case of Search or Requisition [Section 153A(1)(b)]
19.4.3. Separate Assessment of 6 Years + Current Year Under First Proviso to Section 153A
19.4.4. Prior Approval for Search Assessments [Section 153D]
19.4.5. Third Proviso to Section 153A (1): Exception for Notified Cases
19.4.6. Time Limit for Completion of Assessment [Section 153B(1)(a)]
19.4.7. Assessment of Income of Any Other Person [Section 153C]
19.5. Section 133A: Income Tax Survey Powers – (Power to Conduct Surveys – A Preventive Enforcement Tool)
19.5.1. Section 133A (1) to (4): Survey of Business & Charitable Premises
19.5.2. Section 133A (5): Survey in Connection with Public Events & Functions
19.5.3. Consequences for Non-Cooperation in Surveys [Section 133A (6)]
[CHAPTER-20]
Deduction and Collection of Tax at Source (TDS/TCS)
[Sections 190 to 206CA i.e. Chapter XVIIA, XVIIB & XVIIBB]
20.1. Section 190: Deduction at Source and Advance Payment
20.2. Section 191: Direct Payment by the Assessee in Certain Cases
20.3. Deduction of Tax from Salary [Section 192]
20.3.1. Tax to be Deducted at Average Rate of Income-Tax [Section 192(1)]
20.3.2. Furnishing of Evidence of Claims by Employees for TDS Deduction Under Section 192 [Rule 26C]
20.3.3. When Does the Liability to Deduct Tax at Source (TDS) Arise?
20.3.4. Person Responsible for Deduction of Tax at Source [Section 204(i)]
20.3.5. Tax on Non-Monetary Perquisites Paid by Employer [Section 192(1A) & (1B)]
20.3.6. Salary from More Than One Employer [Section 192(2)]
20.3.7. Relief Under Section 89 for Arrears/Advance Salary [Section 192(2A) & Rule 21AA]
20.3.8. Details of Other Incomes [Section 192(2B) & Rule 26B]
20.3.9. Employer’s Obligation to Furnish Statement to Employee [Section 192(2C) & Rule 26A (2)]
20.3.10. Employer’s Duty to Obtain Evidence for Employee Claims for the Purpose of TDS [Section 192(2D)]
20.3.11. Adjustment in the Amount of Tax to be Deducted [Section 192(3)]
20.3.12. Deduction of Tax on Accumulated PF Balance [Section 192(4)]
20.3.13. Deduction of Tax on Approved Superannuation Fund Pay-outs [Section 192(5)]
20.3.14. CHDT Rules for Deduction of Tax at Source (TDS)
20.3.15. TDS Not Deductible or Deductible at Lower Rate [Section 197 & Rules 28, 28AA]
20.4. Deduction of Tax from Recognized Provident Fund Withdrawals [Section 192A]
20.5. Deduction of Tax from Interest on Securities [Section 193]
20.5.1. Lower/Nil TDS Deduction Under Section 197 & Rules 28, 28AA
20.6. Deduction of Tax from Dividends [Section 194]
20.7. TDS on Interest (Other Than Securities) [Section 194A]
20.7.1. Adjustment in TDS Amount Under Section 194A (4)
20.8. TDS on Winnings from Lottery, Crossword Puzzles, Card Games, etc. [Section 194B]
20.9. TDS on Winnings from Horse Races [Section 194BB]
20.10. TDS on Payments to Resident Contractors [Section 194C]
20.11. TDS on Insurance Commission [Section 194D]
20.12. TDS on Life Insurance Policy Pay-outs [Section 194DA]
20.13. TDS on Payments to Non-Resident Sportsmen, Sports Associations, or Entertainers [Section 194E]
20.14. TDS on Payments from National Savings Scheme (NSS) [Section 194EE]
20.15. TDS on Commission from Lottery Ticket Sales [Section 194G]
20.16. TDS on Commission and Brokerage [Section 194H]
20.17. TDS on Rent [Section 194-I]
20.18. TDS on Transfer of Immovable Property (Other Than Agricultural Land) [Section 194-IA]
20.19. TDS on Rent Payments by Individuals/HUFs [Section 194-IB]
20.20. TDS on Payments Under Joint Development Agreements (JDAs) referred to in Section 45(5A) [Section 194-IC]
20.21. TDS on Fees for Professional/Technical Services [Section 194J]
20.22. TDS on Income from Units (Mutual Funds, UTI, etc.) [Section 194K]
20.23. TDS on Compensation for Acquisition of Immovable Property [Section 194LA]
20.24. TDS on Interest from Infrastructure Debt Funds [Section 194LB]
20.25. TDS on Income from Units of a Business Trust [Section 194LBA]
20.26. TDS on Income from Investment Fund Units [Section 194LBB]
20.27. TDS on Income from Securitisation Trust Investments [Section 194LBC]
20.28. TDS on Interest from Indian Company/Business Trust to Non-Residents [Section 194LC]
20.29. TDS on Interest from Certain Bonds & Securities [Section 194LD]
20.30. TDS on Payments by Individuals/HUFs for Specified Expenses [Section 194M]
20.31. TDS on Cash Withdrawals [Section 194N]
20.32. TDS on Payments by E-Commerce Operators to Participants [Section 194-O]
20.33. TDS Relief for Specified Senior Citizens [Section 194P]
20.34. TDS on Purchase of Goods [Section 194Q]
20.35. TDS on Other Sums Paid to Non-Residents [Section 195]
20.36. TDS on Income Payable “Net of Tax” [Section 195A]
20.37. Section 196: No TDS on Payments to Government, RBI, or Certain Corporations
20.38. Section 196A: TDS on Income from Units of Non-Residents
20.39. Section 196B: TDS on Income from Units of Offshore Funds
20.40. Section 196C: TDS on Income from Foreign Currency Bonds or GDRs of Indian Companies.
20.41. Section 196D: TDS on Income of Foreign Institutional Investors (FIIs) from Securities
20.42. Section 197: General Provisions for Lower or Nil TDS Deduction
20.43. Section 197A: No TDS Deduction in Certain Cases
20.44. Section 198: Tax Deducted is Income Received
20.45. Section 199 with Rule 37BA: Credit for Tax Deducted at Source (TDS)
20.46. Section 200: Duty of Person Deducting Tax (TDS Compliance Obligations)
20.47. Section 200(3): Requirement to File TDS Statements
20.48. Section 200A: Processing of TDS Statements
20.49. Section 201: Consequences of Failure to Deduct or Pay TDS
20.50. Certificate for Tax Deducted at Source (TDS) – Section 203 & Rule 31 1
20.51. Tax Deduction and Collection Account Number (TAN) – Section 203A & Rule 114A
20.52. Section 204: Definition of “Person Responsible for Paying” (TDS Obligations)
20.53. Section 205: Bar Against Direct Demand on Assessee When TDS is Deducted
20.54. Section 206A with Rules 31AC & 31ACA: Reporting Non-TDS Payments to Residents
20.55. Section 206AA: Mandatory PAN Requirement for TDS/TCS (Even If Otherwise Exempt)
20.56. Section 206AB: Special Provision for Higher TDS on Non-Filers of ITR
20.57. Situations Where No Tax is to be Deducted at Source (TDS Exemptions)
[CHAPTER-21]
Tax Collection at Source (TCS)
21.1. Section 206C: Tax Collected at Source (TCS) on Sale of Specified Goods like Alcoholic Liquor, Forest Produce, Scrap, Minerals, And Motor Vehicles.
21.2. Definition of “Seller” and “Buyer” under Section 206C (1) & (1F)
21.3. Section 206C(1B) & Rule 37C (3): Compliance for TCS Exemption Declarations
21.4. Section 206C(1C): TCS on Parking Lots, Toll Plazas, Mining & Quarrying
21.5. Section 206C(1G): TCS on Foreign Remittances (LRS) & Overseas Tour Packages
21.6. Section 206C(1H): TCS on Sale of Goods (Effective from 1st October 2020)
21.7. Section 206CC: Higher TCS Rate for Non-Furnishing of PAN
21.8. Section 206CCA: Higher TCS for Non-Filers of Income Tax Returns
21.9. Section 206C (3) & Rule 37CA: Time and Mode of TCS Payment to Government
21.10. Statement of Tax Collected and Deposited [Proviso to Section 206C (3) & Rule 31AA (1)]
21.11. Section 206C(3B): Correction Statement for TCS Rectification
21.12. Section 206C (4): Credit for Tax Collected at Source (TCS)
21.13. Section 206C (5) & Rule 37D: Issue of TCS Certificate (Form 27D)
21.14. Section 206C(6): Consequences of Failure to Collect TCS
21.15. Penalty Under Section 221 for TCS Defaults [Section 206C(6A)]
21.16. Section 206C (7): Interest for Late Payment of TCS
21.17. Penal Provisions Related to Tax Collected at Source (TCS)
21.18. Tax Collection at Source (TCS) – Lower Rate Provisions [Section 206C (9), (10), (11) and Rules 37G and 37H]
21.19. Processing of Statements of Tax Collected at Source (TCS) [Section 206CB]
[CHAPTER-22]
Advance Payment of Tax
[Section 207-211, 217 & 219]
22.1. Liability for Payment of Advance Tax [Section 207]
22.2. Exemption for Senior Citizens from Advance Tax [Section 207(2)]
22.3. Conditions for Liability to Pay Advance Tax [Section 208]
22.4. Computation & Payment of Advance Tax (Self-Assessment) [Section 209(1)(a) & (d)]
22.5. Payment of Advance Tax by the Assessee on Their Own Accord [Section 210(1)]
22.6. Payment of Advance Tax Pursuant to Assessing Officer’s Order [Section 210(3) & 210(4)]
22.7. Instalments of Advance Tax & Due Dates [Section 211]
22.8. Payment of Advance Tax on Capital Gains & Casual Income [Proviso to Section 234C]
22.9. Assessee Deemed to be in Default [Section 218]
22.10. Credit for Advance Tax [Section 219]
[CHAPTER-23]
Interest and Fee Payable by/to Assessee
[Section 201(1A), 220(2), 234A, 234B, 234C, 234D, 234E, 234F, 234G, 234H & 244A]
23.1. Interest for Default in Furnishing Return of Income [Section 234A (1)]
23.2. Interest for Default in Furnishing Return of Income Under Section 148 [Section 234A (3)]
23.3. Increase/Decrease in Interest on Certain Orders [Section 234A (4)]
23.4. Interest for Default in Payment of Advance Tax [Section 234B (1)]
23.5. Interest Payable for Defaults in Payment of Advance Tax [Section 234B (3)]
23.6. Increase/Decrease in Interest on Certain Orders [Section 234B (4)]
23.7. Interest for Deferment of Advance Tax [Section 234C]
23.8. Interest on Excess Refund Granted at the Time of Summary Assessment [Section 234D]
23.9. Fee for Delay in Furnishing TDS/TCS Statements [Section 234E]
23.10. Fee for Default in Furnishing Return of Income [Section 234F]
23.11. Fee for Default in Furnishing Statement / Certificate [Section 234G]
23.12. Fee for Default in Intimation of Aadhaar Number [Section 234H]
23.13. Interest for Late Payment of Demand of Tax, Interest, Penalty, Etc. [Section 220(2)]
23.13.1. Adjustment of Interest Under Section 220(2) – First Proviso Explained
23.13.2. Reduction or Waiver of Interest Under Section 220(2) [Section 220(2A)]
23.13.3. Exclusion of Interest Under Section 220(2) When Charged Under Section 201(1A) [Section 220(2B)]
23.14. Interest for Failure to Deduct or Pay Tax at Source [Section 201(1A)]
23.15. Interest Payable to Assessee on Tax Refunds [Section 244A]
23.16. Waiver of Interest Under Income Tax Act: Key Provisions & Conditions
[CHAPTER-24]
Refunds
[Sections 237 to 241 & 245]
24.1. Who Should Claim Refund?
24.2. Who Is Entitled to Refund? [Section 237]
24.3. Can A Person Other Than the Assessee Claim Refund? [Section 238]
24.4. Form for Claim for Refund and Period Within Which Claim for Refund Should be Made [Section 239 And Rule 41]
24.5. Refund on Appeal, etc. [Section 240]
24.6. Withholding of Refund in Certain Cases [Section 241A]
24.7. Correctness of Assessment Not to Be Questioned [Section 242]
24.8. Interest Payable to Assessee [Section 244A]
24.9. Set-Off of Refund Against Outstanding Tax Demand [Section 245]
24.10. Procedure for Filing a Delayed Income Tax Refund Claim
[CHAPTER-25]
Penalties and Prosecutions
25.1. Penalty Where Search Has Been Initiated [Section 271AAB(1A)]
25.2. Penalty in Respect of Certain Income [Section 271AAC]
25.3. Penalty for False Entry, etc. in Books of Account [Section 271AAD]
25.4. Penalty for Failure to Furnish Statements, etc. [Section 271H]
25.5. Penalty for Failure to Comply with Provisions of Section 269ST [Section 271DA]
25.6. Mandating Acceptance of Payments Through Prescribed Electronic Modes [Section 269SU, 271DB]
25.7. Penalty for Furnishing Incorrect Information in Reports or Certificates [Section 271J]
25.8. Penalty for Failure to Furnish Statements, etc. [Section 271K]
25.9. Penalty for Under-Reporting and Misreporting of Income [Section 270A]
25.9.1. Penalty for Under-Reported Income [Section 270A (1)]
25.9.2. Cases of Misreporting of Income [Section 270A (9)]
25.9.3. Penalty for Under-Reported Income in Absence of Prior Penalty [Section 270A (4)]
25.9.4. Determination & Computation of Under-Reported Income [Section 270A(2) & (3)]
25.9.5. Tax Payable on Under-Reported Income [Section 270A(10)]
25.9.6. Order of Penalty to Be in Writing [Section 270A (12)]
25.10. Immunity from Imposition of Penalty and Initiation of Proceedings [Section 270AA]
25.11. Power to Reduce or Waive Penalty, Etc., In Certain Cases [Section 273A]
25.12. Power of Principal Commissioner/Commissioner to Grant Immunity from Penalty [Section 273AA]
25.13. Penalty not to be imposed in certain cases [Section 273B]
25.14. Procedure for Imposing Penalty [Section 274]
25.15. Bar of Limitation for Imposing Penalties [Section 275]
25.16. Power of Principal Commissioner or Commissioner to Grant Immunity from Prosecution [Section 278AB]
[CHAPTER-26]
Appeals and Revision
[Sections 246 to 264]
26.1. Remedy Available Against the Order of The Commissioner (Appeals)/Revision Orders Of CIT
26.2. Remedy Against Orders of Appellate Tribunal
26.3. Appeal Against Order of High Court to Supreme Court
26.4. Appealable Orders Before Commissioner (Appeals) [Section 246A]
26.5. Appeal by Person Denying Liability to Deduct Tax [Section 248]
26.6. Form of Appeal and Limitation [Section 249 and Rules 45 & 46]
26.7. Procedure in Hearing Appeal [Section 250]
26.8. Faceless Appeals Before Commissioner (Appeals) – Notification No. 139/2021
26.9. Powers of the Commissioner (Appeals)-[CIT(A)] [Section 251]
26.10. Appeals to the Income Tax Appellate Tribunal (ITAT) [Section 253(1) & (2)]
26.11. Procedure for Filing Appeal to Appellate Tribunal (ITAT) [Sections 253(3), (3A), (4), (5) & (6)]
26.12. Orders of Appellate Tribunal (ITAT) [Section 254]
26.13. Remedies Against Orders of the Income Tax Appellate Tribunal (ITAT)
26.14. Appeal to the Supreme Court [Section 261]
26.15. Revision by Chief Commissioner/Commissioner [Sections 263 & 264]
26.16. Faceless Revision of Orders [Section 264A]
26.17. Faceless Effect of Orders [Section 264B]
26.18. Special Provision for Avoiding Repetitive Appeals [Section 158A & Rule 16]
26.19. Special Provisions for Avoiding Repetitive Appeals by Revenue [Section 158AA]
26.20. Exclusion of Time Taken for Obtaining Copy of Order [Section 268]
[CHAPTER-27]
Equalisation Levy
[Chapter VIII of the Finance Act, 2016]
27.1. Charge of Equalisation Levy [Section 165 and section 165A]
27.2. Collection and Recovery of Equalization Levy [Section 166 And Section 166A]
27.3. Furnishing of Statement [Section 167]
27.4. Processing of Statement [Section 168]
27.5. Rectification of Mistake [Section 169]
27.6. Interest on Delayed Payment of Equalisation Levy [Section 170]
27.7. Penalty for Failure to Deduct or Pay Equalisation Levy (EL) [Section 171]
27.8. Penalty for Failure to Furnish the Equalisation Levy (EL) Statement [Section 172]
27.9. Penalty Not to Be Imposed in Certain Cases [Section 173]
27.10. Amounts Not Deductible [Section 40(a)(ib)]
[CHAPTER-28]
Miscellaneous Provisions
28.1. Mode of Taking or Accepting Certain Loans, Deposits and Specified Sum [Section 269SS]
28.1.1. Section 269SS Not to Apply in The Following Cases [Provisos 1 And 2 To Section 269SS]
28.2. Mode of Repayment of Certain Loans or Deposits and Specified Advance Received [Section 269T]
28.2.1. Exceptions to Section 269T (Repayment of Loans/Deposits ≥ ₹20,000 in Cash)
28.2.2. Consequences of Violating Section 269T (Penalty under Section 271E)
28.3. Section 269ST: Mode of Undertaking Specified Transactions (Cash Limit)
28.3.1. Penalty for Violating Section 269ST (Under Section 271DA)
28.4. Mandating Electronic Payment Acceptance (Sections 269SU & 271DB)
28.4.1. Penalty for Non-Compliance with Section 269SU (Under Section 271DB)
28.5. Certain Transfers to be Void [Section 281]
28.6. Section 281B: Provisional Attachment to Protect Revenue
28.7. Service of Notice Under the Income Tax Act [Section 282 to 284]
28.8. Service of Notice When Family is Disrupted or Firm is Dissolved [Section 283]
28.9. Service of Notice in Case of Discontinued Business [Section 284]
28.10. Authentication of Notices & Documents [Section 282A]
28.11. Section 292B: Return of Income, Assessment, etc., Not Invalid on Certain Grounds
28.12. Submission of Statements Under Section 285B & Rule 121A
28.13. Provisions Under Section 285BA: Statement of Financial Transaction (SFT) or Reportable Account
28.14. Annual Information Statement (AIS) Under Section 285BB
28.15. Condonation of Delay in Obtaining Approval [Section 293B]
28.16. Power to Withdraw Approval [Section 293C]
28.17. Faceless Approval or Registration [Section 293D]
28.18. Dispute Resolution Committee (DRC) [Section 245MA]
28.19. Tax Clearance Certificate (TCC) Under Section 230: A Comprehensive Guide
28.20. Tonnage Tax Scheme Under Sections 115V to 115VZC: A Comprehensive Guide
