Salary

CONTENTS

152.1 Under section 10(8A) 152.2 Under section 10(8B) 153. Income of family members [Sec. 10(9)] 154. Aircraft lease rent payable to foreign Government [Sec. 10(15A)] 155. Shipping [Sec. 44B] 155.1 Conditions 155.2 Consequences if the above conditions are satisfied 156. Exploration of mineral oils [Sec. 44BB] 156.1 Conditions 156.2 Consequences if the above conditions are satisfied 156.3 Is it possible to declare lower income 157. Computation of income in respect of foreign airlines [Sec. 44BBA] 158. Computation of profits and gains of foreign companies engaged in the business of civil construction [Sec. 44BBB] 158.1 Is it possible to declare lower income 159. Head office expenditure in the case of non-resident [Sec. 44C] 159.1 Meaning of adjusted total income 159.2 Average adjusted total income 159.3 Head office expenditure 159.4 Section 44C - When not applicable 160. Royalties and technical fees in the case of foreign companies [Sec. 44D] 160.1 Agreement made before April 1, 1976 160.2 Agreement made on or after April 1, 1976 not being covered by section 44DA [Sec. 115A] 160.3 Section 44DA 160.4 Conclusions 161. Computation of income and tax 162. Computation of capital gain in the case of non-resident [First proviso to Sec. 48] 162.1 Special provisions in the case of a non-resident Indian [Sec. 115F] 163. Special provisions 163.1 Who can claim the benefit of special provisions 163.2 Incomes which are qualified for special treatment 163.3 Special tax rate 163.4 Return of income not to filed in certain cases 163.5 Benefit available even after assessee becomes resident 163.6 Special provisions not to apply if assessee so chooses [Sec. 115-I] 164. Case studies

MULTIPLE CHOICE QUESTIONS

170. Relief for double taxation [Secs. 90, 90A and 91] 171. ADT agreements [Sec. 90] 171.1 Modes of granting relief under ADT agreements 172. Unilateral relief [Sec. 91] 173. Double taxation relief in case of specified associations [Sec. 90A] 174. Case studies

MULTIPLE CHOICE QUESTIONS

CONTENTS

177. International transaction [Secs. 92 to 92F] 177.1 Conditions for applicability of arm’s length price in the international transaction 178. Computation of the arm’s length price (ALP) 179. Computation of ALP [Sec. 92C] 179.1 Method of computing arm’s length price 179.2 Comparability of transaction 179.3 Most appropriate method 179.4 Determination of arm’s length price by Assessing Officer in certain cases [Sec. 92C(3)] 179A. Computation of arm’s length price in cases where more than one price is determined under most appropriate method 179A.1 Range concept/multiple year data - When applicable 179A.2 When range concept is not applicable 179A.3 When range concept is applicable 180. Reference to Transfer Pricing Officer [Sec. 92CA] 180.1 Computation of income by Assessing Officer 180.2 Mistakes apparent from record 180.3 Powers under section 131 or 133 181. Maintenance of books of account [Sec. 92D] 181.1 Support by authentic documentation 181.2 Continuity for more than a year 181.3 Period 181.4 Furnishing information about international transaction 182. Report from accountant [Sec. 92E] 183. Specified domestic transactions 184. Advance pricing agreement (APA) [Sections 92CC and 92CCD] 185. Secondary adjustment in certain international transactions [Sec. 92CE] 185.1 Secondary adjustment in common parlance 185.2 When section 92CE is applicable 185A. Provisions pertaining to thin Capitalisation 185A.1 Limitation on interest deductible [Sec. 94B]

MULTIPLE CHOICE QUESTIONS

186. Constitution of the Board for Advance Ruling 187. Advance ruling 187.1 Authority for advance ruling [Sec. 245-O] 187.2 Meaning of “applicant” and advance ruling [Sec. 245N(a) and (b)] 187.3 Non-resident in which year 188. Procedure for filing application 188.1 Application form number 188.2 Fees 188.3 Who should sign the application 188.4 Withdrawal of application 189. Procedure on receipt of application [Sec. 245R]

CONTENTS

189.1 When the application can be rejected 189.2 Pronouncement of advance ruling 189.3 Continuation of proceedings after the death, etc., of the applicant 189.4 Hearing of application ex parte 189.5 Modification of order 189.6 Rectification 189.7 Appellate authority not to proceed in certain cases 190. Applicability of advance ruling [Sec. 245S] 191. Advance ruling to be void in certain circumstances [Sec. 245T] 192. Powers of authority [Sec. 245U] 193. Authority for advance rulings [Sec. 245-O]

MULTIPLE CHOICE QUESTIONS

UNIT V

195. Restructuring business

196. Amalgamation 197. Meaning of “amalgamation” under the Income-tax Act [Sec. 2(1B)] 197.1 Conditions 197.2 Transactions not treated as “amalgamation” 198. Actual cost and written down value when assets are transferred in a scheme of amalgamation 198.1 When a capital asset (other a block of assets) is transferred 198.2 When a block of asset is transferred 199. Assets in amalgamation not treated as “transfer” 199.1 Transfer of capital assets to amalgamated Indian company [Sec. 47(vi)] 199.2 Transfer of shares in an Indian company held by a foreign company to another foreign company [Sec. 47(via)] 199.3 Allotment of shares in amalgamated company to the shareholders of amalgamating company [Secs. 47(vii) and 49(2)] 200. Carry forward and set-off of loss and depreciation - When permissible in the hands of amalgamated company [Sec. 72A] 200.1 Consequences when the above conditions are satisfied 200.2 Consequences when the above conditions are not satisfied after adjusting loss/ depreciation 201. Set-off of losses of a banking company against the profit of a banking institution under a scheme of amalgamation [Sec. 72AA] 202. Case studies 203. Expenditure on amalgamation/demerger [Sec. 35DD]

CONTENTS

204. Consequences of amalgamation 204.1 Date of amalgamation

MULTIPLE CHOICE QUESTIONS

205. Meaning of demerger [Sec. 2(19AA)] 205.1 Condition one - Entities involved should be companies 205.2 Condition two - Sections 391 to 394 205.3 Condition three - It involves transfer of an undertaking 205.4 Condition four - All property of the undertaking should be transferred to the resulting company 205.5 Condition five - The resulting company should takeover all liabilities of the undertaking 205.6 Condition six - Liabilities/properties are to be transferred at book value 205.7 Condition seven - Shares in resulting company to shareholders of demerged company 205.8 Condition eight - Person holding 75 per cent shares in the demerged company to become shareholders in the resulting company 205.9 Condition nine - Transfer as ongoing concern 205.10 Condition ten - Section 72A(5) conditions 205.11 Other points 206. Actual cost and WDV 206.1 When a capital asset (other than forming part of a block of asset) is transferred 206.2 When an asset forming part of block of assets is transferred [Explns. 2A and 2B to sec. 43(6)] 206.3 Computation of depreciation 207. Demerger and capital gains 207.1 When it is not treated as transfer 207.2 Cost of acquisition of shares in resulting company and demerged company [Sec. 49(2C)/(2D)] 208. Expenditure on demerger 209. Carry forward and set-off of losses/depreciation - When permissible in the hands of resulting company [Sec. 72A] 210. Case study 211. Consequences of demerger 212. Amalgamation vis-a-vis Demerger 213. Amalgamation or demerger of co-operative banks 213.1 When not treated as transfer 213.2 Carry forward and set-off of loss and depreciation - When permissible in the hands of amalgamated/resulting co-operative bank [Sec. 72AB] 213.3 Special provision for computing deductions

MULTIPLE CHOICE QUESTIONS

215. Conversion of sole proprietary concern 215.1 Taking back the exemption

CONTENTS

215.2 Set-off and carry forward loss of sole proprietary by company 216. Conversion of firm into company 216.1 Exemption under section 47(xiii) 216.2 Exemption under section 47(xi) 216.3 Is it possible to set-off and carry forward loss of firm by company [Sec. 72A(6)]

MULTIPLE CHOICE QUESTIONS

220. Definition of slump sale [Section 2(42C)] 220.1 Taxpayer owns an undertaking 220.2 The undertaking is transferred by any means 220.3 Transfer takes place for a lump sum consideration 221. How to find out written down value in the hands of transferor in the case of slump sale [Sec. 43(6)] 222. Capital gains in the case of slump sale [Sec. 50B] 223. Other points 224. Case studies 225. Amalgamation/Demerger vis-a-vis slump sale

MULTIPLE CHOICE QUESTIONS

230. When a capital asset (other than block of asset) is transferred 231. When a block of asset is transferred [Expln. 2 to sec. 43(6)] 232. Exemption under section 47 233. Withdrawal of exemption 233.1 Cases when exemption is taken back 233.2 Consequences 234. Case study

MULTIPLE CHOICE QUESTIONS

238. Conversion 239. Capital gain exemption in 239.1 Conditions for claiming exemption 239.2 When exemption will be taken back 240. Carry forward of loss/depreciation [Sec. 72A(6A)] 240.1 Other points

CONTENTS

UNIT I

251. Income liable for advance tax 251.1 Liability to advance tax - When arises 251.2 Due dates of payment of advance tax 252. Different situations 252.1 Payment of advance tax by the assessee of his own account [Sec. 210] 252.2 Payment of advance tax in pursuance of order of Assessing Officer [Sec. 210] 252.3 Payment of advance tax in pursuance of revised order of Assessing Officer 253. Interest 254. Case study

MULTIPLE CHOICE QUESTIONS

269. What is the scheme of tax deduction at source (TDS) 269.1 Payments covered by TDS scheme 269.2 TDS rates during the financial year 2022-23 269.3 Consequences of default 269.4 Other Points 270. When and how tax is to be deducted at source from salary [Sec. 192] 270.1 How to compute taxable salary and tax thereon 270A. When and how tax is to be deducted at source from withdrawal from employees provident fund scheme [Sec. 192A] 271. When and how tax is to be deducted at source from interest on securities [Sec. 193] 271.1 Securities interest which is not subject to tax deduction 272. When and how tax is to be deducted at source from dividends [Sec. 194] 273. When and how tax is to be deducted at source from interest other than interest on securities [Sec. 194A] 273.1 Interest not Subject to tax deduction 273.2 Other Points 274. When and how tax is to be deducted at source from winnings from lotteries or crossword puzzles [Sec. 194B]

317 274.1 Prize given partly in cash and partly in kind 317 275. When and how tax is to be deducted at source from winnings from horse races [Sec. 194BB] 318 276. When and how tax is to be deducted at source from payments to contractors or sub-contractors [Sec. 194C] 318 276.1 Who is deductor 318

CONTENTS

276.2 Meaning of work contract 276.3 Rate of TDS 276.4 When tax is not deductible 277. When and how tax is to be deducted at source from insurance commission [Sec. 194D] 277A. When and how tax is to be deducted at source from payment of life insurance policy [Sec. 194DA] 278. When and how tax is deductible at source from payment to non-resident sportsmen or sports associations [Sec. 194E] 279. When and how tax is deductible from payments in respect of National Savings Scheme [Sec. 194EE] 280. When and how tax is deductible on payments on account of repurchase of units of Mutual Funds or UTI [Sec. 194F] 281. When tax is deductible from commission, etc., on sale of lottery tickets [Sec. 194G] 282. When and how to deduct tax at source from commission or brokerage [Sec. 194H] 282.1 Meaning of commission or brokerage 283. When and how tax is deductible from rent [Sec. 194-I] 322

283A. When and how tax is deductible from payment on transfer of certain immovable properties under Sec. 194-IA 323 283B. When and how tax is deductible from rent by certain individuals/HUFs under section 194-IB 323 283C. When and how tax is deductible from payment under joint development agreement under section 194-IC 324 284. When tax is deductible at source on fees for professional or technical services [Sec. 194J] 324 284.1 Time of tax deduction 325 284.2 Meaning of professional/technical services 325 284.3 Royalty 325 284A. When tax is deductible at source in respect of income from units [Sec. 194K] 326 284B. When and how to deduct tax at source from payment of compensation on acquisition of certain immovable property [Sec. 194LA] 326 284C. When and how tax is to be deducted at source from Interest payable on Infrastructure debt fund [Sec. 194LB] 327 284D. When and how tax is to be deducted at source from income from units of business trust [Sec. 194LBA] 327 284E. When and how tax is deductible from income in respect of units of investment fund [Sec. 194LBB] 327 284F. When and how tax is deductible from income in respect of investment in securitization fund [Sec. 194LBC] 327 284G. When and how tax is to be deducted by an Indian Company from Interest to a non-resident/ foreign citizen [Sec. 194LC] 328 284H. When and how tax is to be deducted from interest on bonds/Government securities under section 194LD 328 284-I. When and how tax is deductible on certain payments by Individual/HUF [Sec. 194M] 329 284J. When and how tax is deductible on payment of certain amounts in cash [Sec. 194N] 329 284K. When tax is deductible at source in respect of payment by e-commerce operator to e-commerce participants [Sec. 194-O] 330 284L. When and how tax is to be deducted in the case of specified senior citizen [Sec. 194P] 331 284M. When and how tax is to be deducted on payment for purchase of goods [Sec. 194Q] 331 284N. When and how tax is deductible on benefit/perquisite pertaining to business/profession [Sec. 194R] 332 284-O. When and how tax is deductible from payment on transfer of virtual digital asset [Sec. 194S] 333 285. When and how tax is to be deducted at source from other sums [Sec. 195] 333 285A. When tax is deductible at source from any income payable to non-resident unitholders [Sec. 196A] 334