SAMPLE CHAPTER Income Tax Law: (1) Income-tax Act, 1961: (2) Annual Finance Acts: (3) Income-tax Rules, 1962: (4) Circulars and Notifications: Basic Concepts of Income Tax Law and Tax Rates CHAPTER 1.3
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Preface
About Direct Taxes:
Content of this book:
Detailed Index:
Provisions:
Judicial Decisions:
Judicial Decisions landmark or prescribed by ICAI
Judicial Decisions,
I-7
Practical Questions:
I-8
I-15 Page No. About the Author I-5 Preface I-7 Acknowledgement I-9 DIRECT TAX LAWS Topics 1 BASIC CONCEPTS OF INCOME-TAX LAW AND TAX RATES 1.3 1.4 1.4 1.4 1.4 1.5 1.5 1.5 1.6 1.7 1.8 1.8 1.8 1.9 1.9 1.9 1.10 1.10 1.10 1.10 1.10 1.10 Contents
INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
I-16 Topics Page No. 1.11 Income Tax Rates 1.12 1.12 1.14 1.14 1.16 ` 1.21 1.22 1.24 1.24 1.25 1.26 1.27 2 RESIDENTIAL STATUS 2.1 2.2 2.3 2.4 2.4 2.4 2.4 3
3.1 3.8 3.9 3.9 3.16 3.17 3.17 3.18
I-17 Topics Page No. 3.18 3.18 3.20 4 INCOME FROM SALARIES 4.1 4.2 4.2 4.3 4.3 ii 4.4 i 4.4 ii 4.4 4.5 4.5 4.5 4.8 4.8 4.9 4.9 4.9 4.10 4.11 4.12 4.14 4.14 4.15 4.16 v 4.17 i 4.17 [other than LTC u/s 10 5 ] ii 4.18 iii 4.18 iv 4.18 v 4.18 vi 4.19 vii 4.19 viii 4.19 4.20 4.22
I-18 Topics Page No. 4.22 4.22 4.23 4.23 4.24 4.25 4.26 4.27 4.27 4.27 4.27 4.28 4.29 4.29 4.32 5 INCOME FROM HOUSE PROPERTY 5.1 5.1 5.4 5.4 5.5 5.5 Explanation 5.7 5.7 5.8 5.8 5.10 5.12 5.12 5.13 5.14 6 PROFITS AND GAINS OF BUSINESS OR PROFESSION 6.1 6.3 6.4 6.4
I-19 Topics Page No. 6.5 6.6 6.6 6.6 6.7 6.9 6.11 6.11 6.14 iia 6.17 i 6.19 iii 6.19 6.19 6.20 6.20 Explanations 6.20 6.25 6.26 Explanations 1 to 2C 6.26 Explanation 6 6.29 Explanation 7 6.30 6.30 6.31 6.33 6.34 6.34 6.35 6.35 6.35 iia 6.35 iia 6.35 6.36 6.38 6.38 6.43
Topics Page No. 6.43 6.43 6.44 6.46 6.46 6.47 6.49 6.57 6.58 6.63 a 6.63 6.66 6.67 6.70 6.70 6.70 6.71 6.73 6.75 6.76 6.76 6.77 6.77 6.79 6.82 6.82 6.83 6.84 6.86 6.87 6.87 6.88
I-20
I-21 Topics Page No. 6.89 6.90 6.92 7 CAPITAL GAINS 7.1 7.1 7.2 7.3 7.4 7.4 7.4 7.5 7.5 7.6 7.7 7.7 7.9 7.10 7.16 [ 48] 7.17 7.19 7.19 7.19 7.20 7.20 7.20 iv v 7.21 xiii xiv 7.22 xiiib 7.25 7.25 7.27 7.27
Topics Page No. 7.28 7.29 7.31 7.32 7.36 7.38 7.39 7.39 7.40 b 7.41 7.41 aa 7.42 aa iiia 7.43 ab 7.44 ac 7.44 b 7.45 7.46 7.47 7.48 7.49 7.49 xvii 7.50 xviii 7.50 7.50 xix 7.50 7.50 7.51 7.51 7.52 7.52
I-22
I-23 Topics Page No. vii viia x 7.52 7.53 7.53 7.53 7.53 via 7.53 7.54 7.57 7.57 7.62 7.63 7.65 7.65 7.66 7.67 7.68 7.69 7.71 Exemptions from Capital Gains u/ss 54, 54B, 54D, 54EC, 54F, 54G, 54GA, 54GB and 54H 7.72 7.75 7.77 7.78 other than Residential House 7.80 7.84 7.86 7.86 7.88
I-24 Topics Page No. 7.89 7.90 8 INCOME FROM OTHER SOURCES 8.1 Deemed Dividends a 8.2 b 8.2 c 8.3 d 8.3 e 8.4 e 8.6 8.7 8.8 8.8 8.9 8.10 8.11 9 TAX ON CONVERSION OF UNACCOUNTED MONEY x 9.1 viib 9.9 9.11 9.13 9.13 9.14 9.15 9.17 9.17 9.17 9.18 9.18 9.18 9.20 10 INCOME COMPUTATION AND DISCLOSURE STANDARDS [ICDS] 10.1
SET-OFF OF LOSSES OR CARRY FORWARD AND SET-OFF OF LOSSES
I-25 Topics Page No. 10.2 10.3 10.6 10.10 10.12 10.14 10.16 10.17 10.19 10.21 10.23 11
TOTAL INCOME 11.1 11.1 11.1 11.1 11.2 ii 11.2 iv 11.4 vi 11.4 vii viii 11.4 11.5 11.6 11.7 11.8 11.8 12
INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S
12.1 12.1 12.2 12.4 12.4 12.5
Topics Page No. 12.6 12.6 12.7 12.8 12.9 12.9 12.11 12.11 12.11 12.12 12.12 12.12 12.13 12.13 12.13 12.16 12.16 12.17 12.19 12.19 12.20 12.21 13
13.1 13.1 13.3 13.6 13.6 13.7 13.9 13.13 13.15 13.16
I-26
DEDUCTIONS FROM GROSS TOTAL INCOME
I-27 Topics Page No. 13.17 13.17 13.18 13.18 13.24 13.25 13.26 13.26 13.26 13.30 13.31 13.31 13.32 13.35 13.35 13.36 13.37 13.37 13.38 13.40 13.41 13.42 13.46 13.46 13.48 13.49 13.49 13.50 13.51
I-28 Topics Page No. 13.52 13.52 13.53 13.53 13.54 14 TAXATION OF CO-OPERATIVE SOCIETIES 14.1 14.1 14.2 14.2 14.2 15 DEDUCTION FOR SPECIAL ECONOMIC ZONE 15.1 15.2 15.3 15.3 15.4 15.4 15.5 15.6 16 TAXATION OF FILM PRODUCERS/DISTRIBUTORS 16.1 16.1 16.2 16.2 16.3 16.3 17 TAXATION OF BONDS 17.1 17.1
I-29 Topics Page No. 17.1 17.2 17.3 17.3 17.3 17.4 18 EXPENDITURE ON EXEMPT INCOME 18.1 18.1 18.3 19 AGRICULTURAL INCOME AND ITS TAX TREATMENT 19.1 19.1 c 19.1 19.2 19.3 19.3 19.4 19.5 20 TAXATION OF POLITICAL PARTIES & ELECTORAL TRUST 20.1 20.2 20.3 20.5
I-9 Page No. About the Author I-5* Preface I-7* Acknowledgement I-9* Topics 21 TAXATION OF CHARITABLE/RELIGIOUS TRUSTS 21.1 21.1 21.1 21.2 15 21.2 21.3 21.3 Explanation 1 21.4 21.5 21.7 21.7 21.9 21.10 21.10 21.10 1 23C 21.11 21.12 21.12 21.14 21.14 Contents
I-10 Topics Page No. 21.16 21.17 21.17 21.18 21.18 21.19 21.20 21.22 21.22 21.23 Explanations 21.24 21.24 Exemption to Income of Certain Funds, Educational Institutions and Medical Institutions [Sec. 10(23C)] 21.25 23C 23C 21.26 23C 21.27 23C 21.27 21.28 21.28 21.29 21.29 21.29 21.30 21.30 21.30 21.32 Exit Tax on certain Trusts and Institutions Accreted Income [Chapter XII-EB - Sections 115TD to 115TF] 21.33 21.33 21.33 21.34
I-11 Topics Page No. 21.37 21.38 21.38 21.38 22 TAXATION OF MUTUAL CONCERNS 22.1 22.2 22.2 22.3 22.3 22.3 23 MINIMUM ALTERNATE TAX (MAT) 23.1 23.1 Explanation 1 23.4 23.9 23.9 23.9 23.9 23.14 23.15 23.17 23.18 24 TAXATION OF FIRMS, LLP AND AOP/BOI Taxation of Firms 24.1 b 24.1 2A 24.4 24.5 Taxation of LLP 24.5 2(23) 24.5 xiiib 24.6 24.6
I-12 Topics Page No. 24.6 24.6 24.6 24.6 Taxation of AOP/BOI 24.7 ba 24.9 24.9 24.10 24.10 24.12 25 ALTERNATE MINIMUM TAX (AMT) 25.1 25.1 25.1 25.2 25.3 25.3 26 TAXATION OF BUY-BACK 26.1 26.1 26.4 26.5 34A 26.5 27 TAX ON INCOME OF SECURITISATION TRUST 23DA 27.1 27.1 27.1
I-13 Topics Page No. 28 TAXATION OF BUSINESS TRUSTS (REITs, InvITs) AND INVESTMENT FUNDS (AIF) Taxation of Business Trust 28.1 28.1 23FC 23FCA 23FD 28.2 28.3 28.3 28.3 28.3 28.4 28.4 28.4 28.5 28.5 Taxation of Income from Alternative Investment Funds [AIF] 28.6 28.6 28.7 28.8 28.8 29 TONNAGE TAXATION SCHEME 29.1 29.1 29.1 29.1 29.2 29.2 29.3 29.3 29.3 29.4 29.5 29.5 29.5
I-14 Topics Page No. 29.5 29.6 29.6 29.6 30 APPLICATION VS. DIVERSION OF INCOME 30.1 30.1 30.1 30.2 31 ASSESSMENT PROCEDURES 31.1 7A 31.1 31.1 31.2 31.2 31.3 31.3 Filing of Return of Income [Chapter XIV] 31.3 31.3 31.3 31.4 31.4 31.5 31.6 31.7 31.7 31.10 31.10 31.12 31.13 31.14 31.14 31.15 31.15
I-15 Topics Page No. 31.15 31.15 31.15 31.16 31.16 31.17 Assessment Procedures [Chapter XIV] 31.17 31.18 31.19 31.19 31.20 31.21 31.22 31.22 31.23 31.24 31.25 31.25 31.26 31.27 31.30 31.31 31.32 31.33 31.34 31.34 31.35 Explanation 1 31.35 31.35 31.36 31.37 31.39 31.39 31.40 31.40 31.41 31.41
I-16 Topics Page No. 31.42 Explanation 1 31.43 31.44 31.46 31.46 31.47 32 APPEALS AND REVISIONS 32.1 32.2 32.3 32.4 32.4 32.5 32.5 32.6 32.6 32.7 32.11 32.12 32.13 32.13 32.14 32.15 32.15 32.17 32.18 32.19 32.19 32.20 32.20 32.21 32.21 32.24 32.24 32.24 32.25 32.26
I-17 Topics Page No. 32.26 32.28 Explanation 2 32.28 32.30 32.32 32.32 32.32 33 SURVEY, SEARCH AND SEIZURE 33.1 33.1 33.2 33.2 33.3 33.5 33.5 33.5 33.6 33.6 33.6 33.6 33.7 33.8 33.10 33.10 33.11 33.12 33.12 33.14 33.14 34 PENALTIES AND PROSECUTIONS 34.1 34.1 34.1 34.2 34.2
I-18 Topics Page No. 34.3 34.4 34.4 34.5 34.7 34.8 34.8 34.9 34.9 34.10 34.11 34.11 34.11 34.14 34.15 34.15 34.21 34.23 34.23 Provision for trial of offences by Special Courts 34.25 34.25 34.25 34.26 34.26 35 SETTLEMENT OF CASES 35.1 35.1 eb 35.1 35.1 35.1 35.2 35.2 35.2 35.2 35.2 35.3 35.3
I-19 Topics Page No. 35.3 35.3 35.4 35.5 35.5 35.5 35.5 35.6 35.7 35.7 35.7 35.7 35.8 35.8 35.9 35.11 35.14 36 LIABILITY IN SPECIAL CASES 36.1 36.1 36.2 36.2 36.2 36.2 36.3 36.3 36.3 36.4 Provisions for Accelerated Assessment 36.5 36.5 36.6 36.6 Assessment on Discontinuance of Business 36.6 36.7 36.7 36.8
I-20 Topics Page No. 37 ASSESSMENT OF HUF 37.1 37.1 37.2 37.2 37.3 37.4 37.5 38 ASSESSMENT OF FIRMS AND LLP 38.1 38.1 38.2 38.2 38.2 38.2 39 TAX DEDUCTION AND COLLECTION AT SOURCE 39.1 39.1 39.2 39.2 TDS Provisions 39.2 39.6 39.7 39.7 39.8 39.11 39.11 39.11 39.14 39.14 39.14 39.15
I-21 Topics Page No. 39.15 39.15 39.18 39.22 39.24 i.e. 39.26 va i.e. 39.26 39.29 39.29 47 39.29 39.29 39.30 39.30 39.30 39.31 39.31 39.32 39.35 39.38 39.38 39.40 39.43 39.46 39.48 39.48 39.49 39.49 39.49 39.49 39.50 39.50 39.52 39.53 39.53 39.53 39.54
I-22 Topics Page No. 39.54 39.54 39.55 39.57 39.58 39.58 39.58 39.59 TCS Provisions [Sec. 206C] 39.60 39.62 39.62 39.62 39.63 ` 39.63 39.65 39.66 39.66 39.67 39.71 40 ADVANCE TAX 40.1 40.1 40.1 40.1 40.2 40.2 40.2 40.2 40.3 41 COLLECTION AND RECOVERY OF TAX 41.1 41.1
I-23 Topics Page No. 41.2 41.2 41.3 41.3 41.4 41.4 41.4 41.4 41.5 41.5 41.5 41.5 41.6 41.6 41.6 41.6 41.7 41.8 42 INTEREST 42.1 42.1 42.2 42.2 42.2 42.3 42.4 42.5 42.6 42.7 42.8 43 MISCELLANEOUS TOPICS, STT/CTT AND IFSC 43.1 43.2 43.4 43.5 43.7
44 TAX PLANNING, TAX AVOIDANCE AND TAX EVASION (INCLUDING GAAR)
I-24 Topics Page No. 43.10 43.11 43.13 43.14 43.16 43.16 43.17 43.18 43.19 43.19 43.19 43.19 43.21 43.22 43.22 43.22 43.23 43.23 Securities Transaction Tax (STT) 43.23 43.23 43.24 43.24 43.24 43.25 43.25 43.25 43.25 43.25 43.25 43.26 43.26 Commodities Transaction Tax (CTT) 43.26 43.26 Tax Incentives to International Financial Services Centres [IFSC] 43.26 43.27
44.1
I-25 Topics Page No. 44.1 44.1 44.2 44.2 44.3 44.3 44.3 44.4 44.4 44.5 44.5 44.6 44.6 44.6 44.7 44.8 44.8 44.9 General Anti-Avoidance Rules [GAAR] 44.11 44.12 44.13 44.15 44.17 44.18 44.18 44.18 44.19 44.21 INTERNATIONAL TAXATION 45 TAX INCIDENCE IN INDIA 45.3 45.3 45.4 45.9
I-26 Topics Page No. 45.12 45.12 i 45.13 Explanation 1 i 45.15 i 45.15 i 45.15 45.15 ii 45.18 iii 45.18 iv 45.19 v 45.19 vi 45.19 vii 45.22 viii 45.23 45.23 45.25 45.25 45.26 46 TAXATION OF NON-RESIDENTS 46.1 46.4 46.5 46.11 Chapter XII-A [Secs. 115C to 115-I] 46.12 46.12 46.12 46.12 46.12 46.13 46.13 46.13
I-27 Topics Page No. 46.15 48 46.17 46.17 46.19 47 DOUBLE TAXATION RELIEF (DTAA) 47.1 47.1 47.1 47.2 47.2 47.2 47.3 47.3 47.3 47.5 47.7 47.8 47.9 48 TRANSFER PRICING 48.1 48.1 48.1 48.2 48.2 48.4 ii 48.4 48.4 48.5 48.6 48.7 48.7 48.8 48.9
Topics Page No. 48.10 48.11 48.12 48.13 48.14 48.21 48.22 48.24 48.24 48.24 48.27 48.32 48.34 48.34 48.35 48.36 48.36 48.37 48.38 49 ADVANCE RULINGS 49.1 49.1 49.1 a 49.1 49.2 49.2 49.2 49.3 49.3 49.6 49.6 49.6
I-28
I-29 Topics Page No. 49.7 49.7 50 EQUALISATION LEVY 50.1 50.1 50.2 50.3 50.3 50.3 50.3 50.4 50.4 50.4 50.4 50.5 Consequential Amendments in Income-tax Act, 1961: 50 50.5 a ib 50.5 51 OVERVIEW OF MODEL TAX CONVENTIONS 51.1 51.1 51.2 51.3 51.3 51.4 51.4 51.5 51.6 51.6 51.7 51.7 51.7 51.7 51.8
I-30 Topics Page No. 51.8 51.9 51.9 52 APPLICATION AND INTERPRETATION OF TAX TREATIES 52.1 52.1 52.1 52.2 Interpretation of Tax Treaties 52.4 52.4 52.5 52.7 52.9 52.10 52.10 52.11 53 FUNDAMENTALS OF BASE EROSION AND PROFIT SHIFTING (BEPS) 53.1 53.2 53.3 53.6 53.8 53.9 53.10 53.10 53.12 53.12 53.13 53.14 53.14 53.16 53.17 M.1 P.1
Basic Concepts of Income Tax Law and Tax Rates
Income Tax Law:
(1) Income-tax Act, 1961:
(2) Annual Finance Acts:
(3) Income-tax Rules, 1962:
(4) Circulars and Notifications:
CHAPTER 1.3
(5) Judicial Decisions:
judiciary will have to consider various cases between the assessees and the department and give decisions law laid down by the Supreme Court is the law of the land decisions given by various High Courts will apply in the respective states
Charge of Income-tax: [Sec. 4]
Assessment year: [Sec. 2(9)]
Previous year: [Sec. 3]
Person: [Sec. 2(31)]
i ii 31 iii iv
i.e. levied paid i.e.
i ii iii iv v vi vii e.g.,
1.4
Explanation
Assessee: [Sec. 2(7)]
any tax or any other sum of money is payable also includes the following:
i any proceeding under this Act has been taken
ii deemed to be an assessee
iii assessee in default
Certain Principles relating to Income under Income-tax Act:
revenue receipts
i.e.
i.e. the assessment year
net receipts
method of accounting
chargeable to tax in the next year
i.e. Accelerated assessment u/s 172, 174, 174A and 175
certain exceptions
Income: [Sec. 2(24)]
The definition of ‘Income’ given under section 2(24) is inclusive and not exhaustive
1.5
other than:
b
Heads of Income: [Sec. 14]
following 5 heads of income:
ii iii iiia iiib iiic iv v va via [Sec. 2 24 x ] [Sec. 2 24 xi ] v vi vii viia viib ix x xi
a Explanation 10
i ii iii iv v 1.6
Gross Total Income
Total Income and Computation of Tax Liability:
1. Income from Salaries
Less:
2. Income from House Property
Less:
3. Profits and Gains of Business and Profession
Add: Add: Less: Less:
4. Capital Gains
Less:
5. Income from other sources
Less: Total [1 + 2 + 3 + 4 + 5]
Less:
Gross Total Income
Less: Net Taxable Income ……..
1.7
Computation of Tax Liability: Tax on Net income
`
Total Net Tax liability ……..
Exemption and Deduction in respect of income:
For e.g. Section 10 exemption
i.e.
Chapter VI-A i.e. deduction
Rounding off of Income: [Sec. 288A]
Rounding off of Tax: [Sec. 288B]
Less:
Add: Add: Less: Less:
`
` 1.8
CER TAIN DEFINITIONS UNDER THE INCOME TAX ACT, 1961:
Definition of 'Liable to Tax': [Sec. 2(29A)]
[Inserted by Finance Act, 2021]
Definition of 'Company': [Sec. 2(17)]
Definition of 'Company in which the public are substantially interested': [Sec. 2(18)]
Note:
Widely held company. Closely held company.
i ii iii iv
i ii iii iv v vi vii a b
1.9
Definition of 'Person having substantial interest in the company': [Sec. 2(32)]
Definition of 'India': [Sec. 2(25A)]
Definition of 'Indian Company': [Sec. 2(26)]
Provided in India.
Definition of 'Domestic company': [Sec. 2(22A)]
Definition of 'Foreign company': [Sec. 2(23A)]
Definition of 'Amalgamation': [Sec. 2(1B)]
i ii iii iv
v
i ia ib ii iii
1.10
i all the property or liabilities
ii not less that 75% in value of the shares become shareholders
i all the property and liabilities
ii transferred at values appearing in its books
iv not less than 75% in value of shares become the shareholders of the resulting company
v on a going concern basis
vi conditions, if any, notified u/s 72A(5)
Definition of 'Demerger': [Sec. 2(19AA)]
Provided iii
by Finance Act, 2021] 1.11
[Inserted
Introduction:
INCOME TAX RATES
Part I of the First Schedule to the Finance Act, 2022 -
Part II of the First Schedule to the Finance Act, 2022 -
Part III of the First Schedule to the Finance Act, 2022 -
Tax Rates for Non-Corporate Assessee: [For Assessment Year 2023-24]
(A) Individuals other than the individuals referred to in B & C below Hindu Undivided Family (HUF) AOP/BOI other than co-operative society every artificial juridical person
(B) Individual, resident in India and aged 60 years or more (i.e. Senior Citizen)
(C) Individual, resident in India and aged 80 years or more (i.e. Super Senior Citizen)
Where the Total Income Amount of Income Tax ` ` ` 5% ` ` ` ` 20% ` ` ` 30% `
Where the Total Income Amount of Income Tax ` ` ` 5% ` ` ` ` 20% ` ` ` 30% `
Where the Total Income Amount of Income Tax ` ` ` 20% ` ` ` 30% ` 1.12
Date of attaining a particular age will be 31st March for those born on 1st April:
60th/80th birthday falls on 1st April, 2023, would be treated as having attained the age of 60 years/80 years in the P.Y. 2022-23, ` `
[Circular No. 28/2016 dated 27.07.2016]
Surcharge:
(except AOP with ALL members as company), [Amended by Finance Act, 2022]
Analysis: 112
The Finance Act, 2022 has provided for an upper limit of surcharge of 15% for capital gains u/s 112 similar to that of capital gains u/s 111A & 112A and/or dividend income.
Example:
Total Income of Individual (excluding capital gains u/s 111A/112/112A and dividend income)
Capital gains u/s 111A/112/112A and dividend income
Total income including capital gains u/s 111A/112/112A and dividend income
Surcharge applicable on tax on capital gains u/s 111A/112/112A and dividend income
Surcharge applicable on tax on total income (other than capital gains u/s 111A/112/112A and dividend income)
(a)
Surcharge i 112 ` ` ii 112 ` ` iii 112 ` ` 112 iv 112 ` 112 v 112 ` iii iv
i ii iii iv v vi vii viii ix x 1.13
1.14
(b) In case of AOP with all members as company, income tax computed shall be increased by surcharge as under: [Inserted by Finance Act, 2022]
` 50 lakhs but does not exceed ` 1 crore
` 1 crore
(D) Co-operative society Where the Total Income
of Income Tax
` 1 crore but does not exceed ` 10 crores.
(E) Firm [including Limited Liability Partnership (LLP)]: Tax rate FLAT 30% of the Total income.
Surcharge: 12% `
Maximum Marginal Rate: [Sec. 2(29C)]
highest slab of income in the case of an individual
Marginal Relief for Non-corporates:
Due to levy of surcharge on income exceeding ` 50 lakhs and upto ` 1 crore, difference between more than ` 50 lakhs but not exceeding ` 1 crore of ` 50 lakhs exceeds difference between ` ` such excess is allowed as Marginal Relief.
Further, due to levy of surcharge on income exceeding ` 1 crore, Where the difference between more than ` 1 crore but not exceeding ` 2 crore of ` 1 crore
Total Income Surcharge Exceeds
10%
15%
Exceeds
Amount
` 10% ` ` ` 20% ` ` ` 30% ` Surcharge: Total Income Surcharge Exceeds
7% ` [Amended
Finance Act,
by
2022]
` ` `
`
exceeds the difference between
then such excess is allowed as Marginal Relief.
Similarly, the Marginal relief shall be calculated in the same manner as given above where the total income exceeds ` 2 crore but does not exceed ` 5 crore or when it exceeds ` 5 crore.
Cess: Health and Education Cess (H&EC) @ 4% added after Marginal relief.
` `
` ` ` `
Practical Question: ` Solution: Calculation of Tax ` ` ` ` ` ` ` ` Add: Less: Marginal Relief Add: Total tax payable 15,21,000 Calculation of Marginal Relief ` ` ` Less: ` Marginal Relief 30,750 Practical Question: ` Solution: Calculation of Tax ` ` ` ` ` ` ` ` 1.15
Add. Less: Marginal Relief Add. Total tax payable 33,73,500 Calculation of Marginal Relief ` ` ` Less: ` Marginal Relief 42,375 Optional Tax Scheme for individuals and Hindu undivided family: [Sec. 115BAC] Total Income Rate of tax ` ` ` ` ` ` ` ` ` ` ` ` Conditions to be satisfied for exercising option: i 5 13A 14 other than those prescribed refer below 17 32 b iia 1.16
Specified Allowances u/s 14 allowed as exemption under the option to tax as per Sec. 115BAC: [Notification No. 38/2020 dated 26.06.2020] only
shall not be available
Failure to satisfy the above conditions:
Unabsorbed additional depreciation allowance:
ii iia iii iia ii Note: iii iia iv
` `
1.17
1.18
Analysis:
Exercising option in prescribed form:
Points to Note:
`
Practical Question:
Solution: If Keyur does not opt for Sec. 115BAC
Calculation of Total Income `
i ii ii
`
` `
Calculation of Tax ` ` ` ` ` ` ` ` Add: Add: Total Tax Payable If Keyur opts for Sec. 115BAC Calculation of Total Income ` Calculation of Tax ` ` ` ` ` ` ` ` ` ` ` ` Add: Add: Total Tax Payable Practical Question: ` ` ` 13A ` ` 5 1.19
Solution: Calculation of Total Income of Mr. Yogesh for A.Y. 2023-24 Existing tax regime (`) Sec. 115BAC (`) Salaries 13A 5 Income from House Property ` ` Income from other sources 32 11 11A Gross total income Less: ` ` ` ` ` 1.20
Existing tax regime (`) Sec. 115BAC (`) Total Income 26,91,000 35,24,500 Calculation of Tax Payable by Mr. Yogesh for A.Y. 2023-24 Existing tax regime (`) Sec. 115BAC (`) Rebate of Income tax for Resident Individuals having taxable income not exceeding ` 5,00,000: [Sec. 87A] ` 5,00,000 i.e. 100% ` 12,500. Points to Note: ` not available u/s 112A Practical Question: ` ` ` Solution: Total Income Tax @ 5% on income in excess of ` 2,50,000, but not exceeding ` 5,00,000 (A) Tax rebate u/s 87A (B) Balance tax payable (A) - (B) ` ` ` 5,000 ` ` ` 12,500 ` ` NIL ` ` 1.21
Practical Question:
Solution:
Total Income Tax @ 5% on income in excess of ` 3,00,000, but not exceeding ` 5,00,000 (A)
Tax rebate u/s 87A (B) Balance tax payable (A) - (B)
Optional Tax Scheme for Resident Co-operative Societies: [Sec. 115BAD]
` ` `
`
` ` `
` ` ` `
` `
NIL
7,000
NIL
i iia ii iia iii ii i Note: ii iii iia 1.22
Failure to satisfy the above conditions:
Unabsorbed additional depreciation allowance: Exercising option in prescribed form:
Points to Note:
Practical Question:
Provided
Resident
` ` Solution: Computation of Tax Liability of Sajda Co-Operative Society for A.Y. 2023-24 If it does not opts for Sec. 115BAD ` ` ` ` ` Total Tax liability 49,920 Computation of Tax Liability of Sajda Co-Operative Society for A.Y. 2023-24 If it opts for Sec. 115BAD ` ` Total Tax liability (rounded-off) 52,350 1.23
Direct Tax Laws & International Taxation
AUTHOR : RAVI CHHAWCHHARIA
PUBLISHER : TAXMANN
DATE OF PUBLICATION : DECEMBER 2022
EDITION : 5th Edition
ISBN NO : 9789356224100
NO. OF PAGES : 1238
Description:
This book provides practical application of Direct Tax Laws & International Tax in a holistic approach while testing the analytical skills of the reader. The crux of this book is to strike a perfect balance between 'detailed studies' and a 'summarised approach'. This book is written with an explanatory & analytical approach. This book will be helpful for the students of CA-Final, CS-Professional, CMA-Final, M.Com/MBA/LL.B./LL.M. & other professional exams.
The Present Publication is the 5th Edition & applicable for CA Final | New Syllabus | May/Nov. 2023 Exam. This book is authored by CA Ravi Chhawchharia, with the following noteworthy features:
[Detailed Index] given at the beginning of the book helps the students navigate through the arrangement of sections and other details.
[Provisions] have been elucidated thoroughly yet briefly throughout the book, keeping the technical language intact.
[Judicial Decisions] are covered for the following:
Landmark/Prescribed by ICAI – have been highlighted in Bold + Underlined along-with name of such case laws are mentioned before the facts and decisions of the case
Other Judicial Decisions – where only the point decided (i.e. the ratio of the case) is relevant & students are not expected to remember the names of such cases, are also covered in this book
[Practical Questions along with Updated Solutions] are covered throughout the book in two formats:
[Questions based on a Particular Section] are given below the provisions
[Questions based on more than one Section] are given at the end of the chapter under the 'Practical Questions' segment
[Amended & Updated] The law stated in this book is applicable for A.Y. 2023-24 & covers the latest applicable provisions and amendments applicable for May/Nov. 2023 exams
[Judicial Decisions, Circular & Notifications] are covered
[Past Exam Solved Questions] including the CA-Final | Nov. 2022 paper with solutions is covered
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