Income Tax Law and Practice
Author(s): Dr. T. Srinivasan
Subject(s): Management
ISBN 9789394828476
 Published Date
  Pages 766

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Comprehensive and student-friendly, this book is designed to address the requirements of undergraduate students of Commerce of all major Universities.

Cover
Halftitle Page
Title Page
Copyright Page
Contents
Preface
CHAPTER 1 BASIC CONCEPTS
1.1 Abbreviations
1.2 Income Tax
1.2.1 History of Income Tax
1.3 Assessee Sec.2(7)
1.4 Types of Assessee
1.5 Person Sec.2(31)
1.6 Income Sec.2(24)
1.6.1 Features of Income
1.7 Gross Total Income Sec.80B(5)
1.8 Total Income Sec.2(45)
1.9 Agricultural Income Sec.2(1A)
1.10 Casual Income
1.10.1 Assessment Year Sec.2(9)
1.10.2 Previous Year Sec.3
1.10.3 Taxation of Previous Years Income during the Same Year
Objective Type Questions
Review Questions
CHAPTER 2 RESIDENTIAL STATUS OF AN ASSESSEE
2.1 Taxable Entities
2.2 Types of Residential Status
2.3 Residential Status of an Individual Assessee
2.3.1 Basic Conditions Sec.6(1)
2.3.2 Additional Conditions Sec.6(6)
2.3.3 Exception and Other Points to be Considered
2.3.4 Resident
2.3.5 Not Ordinarily Resident
2.3.6 Non-Resident Sec. 2(30)
2.3.7 Summary: Rule of Residence
2.4 Residential Status of HUF Sec. 6(2)
2.4.1 Basic Conditions
2.4.2 Additional Conditions
2.4.3 Resident – Ordinary Resident HUF
2.4.4 Resident and Not Ordinary Resident HUF
2.4.5 Non-Resident HUF
2.5 Residential Status – Firm / AOP Sec. 6(2)
2.6 Residential Status – Company Sec.6(3)
2.7 Residential Status of Every Other Person Sec. 6(4)
2.8 Indian Income
2.9 Foreign Income
2.10 Incidence of Tax / Scope of Income
Exercises
Objective Type Questions
Review Questions
CHAPTER 3 EXEMPTED INCOMES
3.1 Abbreviations
3.2 Introduction
3.3 Exempted Incomes
Objective Type Questions
Review Questions
CHAPTER 4 AGRICULTURAL INCOME
4.1 Abbreviations
4.2 Definition
4.3 Agricultural Operations
4.4 Instances of Agricultural Income
4.5 Instances of Non-Agricultural Income
4.6 Treatment of Agricultural Income
4.7 Partly Agricultural Income Rule 7
Exercises
Objective Type Questions
Review Questions
CHAPTER 5 INCOME FROM SALARY
5.1 Salary – Definition Sec. 17(1)
5.1.1 Features of Salary
5.1.2 Advance Salary
5.1.3 Arrears Salary
5.1.4 Basis of Charge Sec. 15
5.2 Allowances
5.2.1 Academic Allowance
5.2.2 Conveyance Allowance
5.2.3 Daily Allowance
5.2.4 Helper Allowance
5.2.5 Travelling Allowance
5.2.6 Transfer Allowance
5.2.7 Uniform Allowance
5.2.8 House Rent Allowance Sec. 10(13A)
5.2.9 Education Allowance
5.2.10 Hostel Allowance
5.2.11 Entertainment Allowance
5.2.12 Tribal Allowance
5.2.13 Running Allowance
5.2.14 Transport Allowance
5.3    Perquisites Sec.17(2)
5.3.1 Types of Perquisites
5.3.2 Rent Free Unfurnished Accommodation (RFUA)
5.3.3 Rent Free Furnished Accommodation (RFFA)
5.3.4 Concessional Rent Accommodation
5.3.5 Motor Car
5.3.6 Medical Facility
5.3.7 Free Domestic Servants
5.3.8 Education Facility
5.3.9 Concessional Loan
5.3.10 Free Gas, Electricity and Water
5.3.11 Free Meals
5.3.12 Movable Assets
5.4 Retirement Benefits
5.4.1 Profit in Lieu of Salary Sec. 17(3)
5.4.2 Gratuity
5.4.3 Pension Sec.17 (i) & (ii)
5.4.4 Leave Travel Concession Sec. 10(5)
5.4.5 Retrenchment Compensation Sec. 10(10B)
5.4.6 Provident Fund
5.5 Deduction U/S 16 - Provisions
5.5.1 Standard Deduction U/S 16(i)
5.5.2 Entertainment Allowance U/S 16(ii)
5.5.3 Professional Tax U/S 16 (iii)
5.6 Deduction U/S 80 C - Provisions
Exercises
Objective Type Questions
Review Questions
CHAPTER 6 INCOME FROM HOUSE PROPERTY
6.1 Abbreviations
6.2 Introduction
6.3 Chargeability
6.4 Deemed Owners of House Property
6.5 Exempted Income from House Property
6.5.1 Annual Value
6.5.2 Factors Determining the Annual Value
6.5.3 Municipal Rental Value (MRV)
6.5.4 Fair Rental Value (FRV)
6.5.5 Standard Rent (SR)
6.5.6 Expected Rental Value (ERV)
6.5.7 Composite Rent
6.5.8 Unrealized Rent (URR)
6.5.9 Loss Due to Vacancy (LDV)
6.5.10 Computation of Income from House Property
6.6 Format for Computation of House Property Income
6.7 Important Points
6.8 Municipal Tax
6.8.1 Points to be Remembered
6.9 Standard Deduction
6.10 Let Out Property (LOP)
Exercises
Objective Type Questions
Review Questions
CHAPTER 7 DEPRECIATION
7.1 Abbreviations
7.2 Introduction
7.3 Reasons for Allowing Depreciation
7.4 Conditions to Claim Depreciation
7.5 Terms Related to Depreciation
7.5.1 Actual Cost Basis
7.5.2 Written Down Value [WDV] Basis
7.5.3 Unabsorbed Depreciation [Section 32(2)]
7.5.4 Tax Treatment
7.5.5 Methods to Calculate Depreciation
7.6 Rates of Depreciation – Tangible Assets
7.7 Rates of Depreciation – Intangible Assets
7.7.1 Computation of Normal Depreciation
7.7.2 Computation of Additional Depreciation
Exercises
Objective Type Questions
Review Questions
CHAPTER 8 INCOME FROM BUSINESS OR PROFESSION
8.1 Abbreviations
8.2 Introduction
8.3 Important Terms
8.3.1 Business Sec. 2(13)
8.3.2 Profession Sec. 2(36)
8.3.3 Vocation
8.3.4 Speculation Business
8.3.5 Illegal Business
8.3.6 Bad Debts Recovered but Disallowed Earlier
8.3.7 Bad Debts Recovered but Allowed Earlier
8.4 Basis of Charge Sec. 28
8.5 Principles for Charging under Business or Profession
8.6 Expenses Expressly Allowed
8.7 Expenses on Scientific Research Sec. 35
8.8 Other Deductions Allowed u/s 36
8.9 General Deductions Allowed u/s 37
8.10 Expenses Expressly Disallowed
8.11 Disallowed Expenses u/s 40
8.12 Disallowed Expenses u/s 40A
8.13 Compulsory Maintenance of Books Sec.44AA and Rule 6F
8.14 Compulsory Audit of Accounts Sec.44AB and Rule 6G
8.15 Income on Estimated Basis
8.16 Percentage of Expenses Expressly Allowed
8.17 Losses Allowable for Deduction
8.18 Treatment of Depreciation
8.19 Treatment "Under, Over Valuation" Stocks
8.19.1 Simply Remember
8.20 Treatment of Bad Debts Recovered
8.21 Format for Computing Income from Business
8.22 Format for Computing Medical Profession
8.23 Format for Computing Auditing Profession
8.24 Format for Computing Legal Profession
Exercises
Objective Type Questions
Review Questions
CHAPTER 9 INCOME FROM CAPITAL GAINS
9.1 Abbreviations
9.2 Introduction
9.3 Meaning of Various Terms
9.3.1 Basis of Charge Sec. 45
9.3.2 Capital Asset Sec. 2(14)
9.3.3 Types of Capital Assets
9.3.4 Short Term Capital Asset Sec. 2(42A)
9.3.5 Long Term Capital Asset Sec. 2(29A)
9.3.6 Transfer Sec. 2(47)
9.3.7 Transfer Not regarded as Transfer Sec. 46 & 47
9.3.8 Deemed Transfer
9.3.9 Cost of Acquisition Sec. 55(2)
9.3.10 Exception
9.3.11 Deemed Cost of Acquisition Sec. 49(1)
9.3.12 Indexed Cost of Acquisition
9.3.13 Cost of Improvement Sec. 55(1)(b)
9.3.14 Assets not considered as Capital Assets or   Exempted Capital Assets
9.3.15 Self Generated Assets
9.4 Cost of Inflation Index
9.4.1 Computation of Short Term Capital Gain (STCG) - Format
9.4.2 Computation of Long Term Capital Gain (LTCG) - Format
9.4.3 Important Notes
9.4.4 Exemptions Available U/S 54
Exercises
Objective Type Questions
Review Questions
CHAPTER 10 INCOME FROM OTHER SOURCES
10.1 Abbreviations
10.2 Basis of Charge
10.3 Incomes Chargeable under Other Sources
10.3.1 Specific Incomes
10.4 General Income
10.4.1 Taxability of Dividend Income
10.4.2 Accumulated Profits
10.5 Interest on Securities
10.5.1 Meaning of Interest on Securities
10.5.2 Method of Accounting for Interest on Securities
10.6 Kinds of Securities
10.6.1 Government Securities
10.6.2 Commercial Securities
10.6.3 Exempted Interest on Securities
10.6.4 Grossing up
10.6.5 Tax Deducted at Source
10.6.6 Rate of TDS
10.6.7 Bond Washing Transaction Sec. 94(1)
10.6.8 Casual Income
10.6.9 Interest not subject to Tax Deduction
10.6.10 Stake Money
10.6.11 Gift
10.6.12 Allowable Deduction Sec. 57
10.6.13 Inadmissible Deductions
10.6.14 Deductions from Interest on Securities
10.7 Format for Calculation of IFOS
10.7.1 Points to be Remembered
Exercises
Objective Type Questions
Review Questions
CHAPTER 11 CLUBBING OF INCOMES
11.1 Aggregation of Incomes
11.2 Clubbing of Incomes
11.3 Deemed Incomes
11.4 Income of AOP or BOI
11.5 Income from Firm
Exercises
Objective Type Questions
Review Questions
CHAPTER 12 SET OFF AND CARRY FORWARD OF LOSSES
12.1 Abbreviations
12.2 Set Off and Carry Forward of Losses - Problems Layout
12.3 Intra-Head Adjustment (Inter Source Adjustment) Sec. 70
12.4 Inter-Head Adjustment Sec. 71
12.5 Set Off of Losses - Diagram
12.6 Carry Forward and Set Off of Losses
12.6.1 Order of Set off
12.7 Carry Forward and Set Off of Losses - Diagram
Exercises
Objective Type Questions
Review Questions
CHAPTER 13 DEDUCTIONS FROM GROSS TOTAL INCOME
13.1 Abbreviations
13.2 Deduction – Problems Layout
13.3 Sec.80C: Deduction in respect of Life Insurance Premia, Contribution to Provident Fund etc.
13.4 Sec.80CCC: Deduction in respect of Pension Fund
13.5 Sec.80CCD: Deduction in respect of Contribution to Notified Pension Scheme of the Central Government
13.6 Sec.80D: Deduction in respect of Medical Insurance Premium
13.7 Sec.80DD: Deduction in respect of Maintenance including Medical Treatment of a Dependent who is a Person with Disability
13.8 Sec.80DDB: Deduction in respect of Medical Treatment on Specified Disease
13.9 Sec.80E: Deduction for Interest Paid on   Loan taken for Higher Education
13.10 Sec.80G: Deduction in respect of Donations to Certain Funds,    Charitable Institutions, etc
13.11 Sec.80GG: Deduction in respect of Rent Paid
13.12 Sec.80GGA: Deduction in respect of Donations for Scientific Research or Rural Development
13.13 Sec.80GGB: Deduction in respect of Contributions given to Political Parties
13.14 Sec. 80IAB Deduction in respect of Profits and Gains by an Undertaking Engaged in Development of Special Economic Zone
13.15 Sec. 80IAC Deduction in respect of Eligible Start-Up
13.16 Sec. 80JJA Deduction in respect of Process of Bio-Degradable Waste
13.17 Sec. 80P Deduction in respect of a Co-operative Society
13.18 Sec.80QQB: Deduction in respect of Royalty Income of Authors of Textbooks
13.19 Sec.80RRB: Deduction in respect of Royalty on Patents
13.20 Sec.80TTA: Deduction in respect of Interest on Saving Accounts
13.21 Sec.80TTB: Deduction in respect of Interest on Deposits in Case of Senior Citizen
13.22 Sec.80U: Deduction in respect of Person with Disability
Exercises
Objective Type Questions
Review Questions
CHAPTER 14 ASSESSMENT OF INDIVIDUALS
14.1 Abbreviations
14.2 Income of an Individual
14.2.1 Procedure for Computing the Taxable Income
14.3 Rates of Income Tax for the A.Y 2022-23 [For Individual / HUF / AOP / BOI]
14.4 Rebate u/s 87A
14.5 Relief u/s 89
Exercises
Objective Type Questions
Review Questions
CHAPTER 15 ASSESSMENT OF FIRMS
15.1 Abbreviations
15.2 Assessment of Firms - Problems Layout
15.3 Firm
15.4 Partner
15.5 Types of Partnership
15.5.1 Conditions to be Fulfilled by a Firm U/S 184
15.5.2 Conditions to be Fulfilled by a Firm U/S 40(B)
15.6 Procedure regarding Firm Assessed u/s 184
15.6.1 Computation of Book Profit
15.6.2 Computation of Business Income
15.6.3 Computation of Total Income
15.6.4 Computation of Tax Liability
15.6.5 Taxable Income of Partners
15.7 Procedure regarding Firm Not Assessed U/S 184
15.7.1 Computation of Business Income
15.7.2 Computation of Total Income
Exercises
Objective Type Questions
Review Questions
CHAPTER 16 INCOME TAX AUTHORITIES
16.1 Abbreviations
16.2 Income Tax Authorities Sec. 116
16.3 Judicial Authorities
16.4 CBDT and its Powers
16.5 Powers of P.C.C / C.C / P.C / Commissioner
16.6 Powers of Joint / Deputy / Assistant Commissioners
16.7 Powers of Assessing Officer Sec. 2(7A)
16.8 Powers of Commissioner (Appeals)
16.9 Income Tax Officers
16.10 Tax Recovery Officers
16.11 Inspector of Tax
Objective Type Questions
Review Questions
CHAPTER 17 RETURN OF INCOME
17.1 Abbreviations
17.2 Voluntary Return of Income Sec. 139
17.3 Compulsory Return of Income Sec. 142 (1)
17.4 Prescribed Forms for Filing of Return
17.5 Belated Return Sec. 139 (4)
17.6 Revised Return Sec. 139 (5)
17.7 Defective Return of Income
17.8 Due Dates for Filing of Return Sec. 139 (1)
17.9 Benefits of Submitting Return
17.10 E-filing of Return
17.11 Procedure for E-filing of Return
17.12 Merits of E-Filing
17.13 Demerits of E-Filing
17.14 Permanent Account Number
Objective Type Questions
Review Questions
CHAPTER 18 ASSESSMENT PROCEDURE
18.1 Abbreviations
18.2 Types of Assessment
18.3 Self-Assessment Sec. 140A
18.3.1 Fee for Late Filing of Return
18.3.2 Format for Self-Assessment
18.4 Assessment by Assessing Officer
18.5 Summary Assessment / Assessment based on Return Sec. 143(1)
18.6 Regular Assessment
18.7 Scrutiny Assessment / Assessment based on Evidence Sec. 143(3)
18.8 Best Judgment Assessment Sec. 144
18.8.1 Compulsory Best Judgment Assessment
18.8.2 Discretionary Best Judgment Assessment
18.9 Re-Assessment / Income Escaping Assessment Sec. 147
Objective Type Questions
Review Questions
CHAPTER 19 ADVANCE PAYMENT OF TAX AND TAX DEDUCTED AT SOURCE
19.1 Abbreviations
19.2 Advance Payment of Tax
19.2.1 Liability for Payment of Advance Tax Sec. 207
19.2.2 Conditions to Pay Advance Tax Sec. 208
19.2.3 Computation of Advance Tax Sec. 209
19.2.4 Payment of Advance Tax Sec. 210
19.2.5 Installments of Advance Tax and Due Dates Sec. 211
19.2.6 Interest for Default in Payment of Advance Tax Sec. 234B
19.3 Tax Deducted at Source
19.3.1 Features
19.3.2 TDS Rates
19.3.3 TDS on Salary Sec. 192
19.3.4 TDS on Provident Fund Sec. 192A
19.3.5 TDS on Interest on Securities Sec. 193
19.3.6 TDS on Interest Other than on      Interest on Securities Sec. 194A
19.3.7 TDS on Insurance Commission Sec. 194D
19.3.8 TDS on Payment of Life Insurance Policy Sec. 194DA
19.3.9 TDS on Rent Sec. 194 I
19.4 E-TDS
19.5 E-TDS Procedure
19.6 Tax Collected at Source Sec. 206C
19.7 Differences between TDS and TCS
Exercises
Objective Type Questions
Review Questions
CHAPTER 20 APPEALS AND REVISION
20.1 Parties Involved in an Appeal
20.2 Stages in Appeal
20.3 Appeal to the Commissioner (Appeals) Sec. 246(2)
20.3.1 Conditions
20.3.2 Reason for Appeal before Commissioner (Appeals) Sec. 246A
20.3.3 Feature / Procedure in Appeal before the Commissioner (Appeals) Sec. 250 and 251
20.4 Appeal to the Appellate Tribunal Sec. 252
20.4.1 Constitution of Appellate Tribunal Sec. 252
20.4.2 Reasons for Appeal to the Appellate Tribunal Sec. 253
20.4.3 Powers of Appellate Tribunal
20.5 Appeal to the High Court Sec. 260A
20.5.1 Procedure to Appeal to the High Court
20.6 Appeal to the Supreme Court Sec. 261
20.7 E-Appeal
20.8 Revision of Orders
Objective Type Questions
Review Questions
Annexure - I
Budget Features [FY 2021-22]
Annexure - II
Tax Rates [Applicable for the AY 2022-23]
Annexure - III
Income Tax Calculation Statement
Subject Index
Section Index
Dr. T. Srinivasan, Professor of Commerce, Annamalai University, Chidambaram. He had served previously as Deputy Director and also as Public Information Officer in Directorate of Distance Education, Annamalai University. He has more than 25 years of teaching experience both at UG and PG level. He has authored one textbook and edited four books. He has published 51 papers in reputed journals and has presented 30 papers at national and international conferences. He has successfully guided 24 M.Phil and four Ph.D. students. Presently he is guiding six students in their Ph.D. programmes. His areas of specialization are Finance, Accounting and Taxation.
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