38.
39.
40.
42.
4 Salaries
5
92.
93.
94.
95.
App. Frequently Asked Questions (FAQs) about
159.
7 Capital gains
8 Income from other sources
9 Income of other persons
total income
10 Set off and carry forward of losses
232. Carry forward and set off of loss and depreciation - When permissible in the hands of amalgamated and demerged company or co-operative bank
233. Problems illustrating the provisions of set off and carry forward of losses 755
11
234. Essential rules governing deductions
235. Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
235A. Deduction in respect of deposit under National Savings Scheme
237. Deduction in respect of pension fund
237A. Deduction in respect of contribution to a National Pension System (NPS)
237B. Deduction in respect of subscription to long-term infrastructure bondsWhen available under section 80CCF
237C. Deduction in respect of investment made under any equity saving scheme 773
237D. Deduction in respect of contribution to Agnipath Scheme
238. Deduction in respect of medical insurance premia
239. Deduction in respect of maintenance including medical treatment of a dependent being a person with disability - When and to what extent available776 240. Deduction in respect of medical treatment, etc.
241. Deduction in respect of payment of interest on loan taken for higher studies781
241A. Deduction in respect of interest on loan taken for residential house property781 241B. Deduction in respect of interest on loan taken for certain house property
241C. Deduction in respect of interest on loan taken for purchase of electric vehicle783
242. Deduction in respect of donation to certain funds, charitable institutions, etc.783
243.
246. Deduction in respect of contributions given by any person to political parties or electoral trust
247. Deduction in respect of profits and gains from projects outside India
248. Deduction in respect of profits and gains from housing projects aided by World Bank 793
249.
250.
252. Deduction in respect of profits and gains from export or transfer of films software
253. Deduction in respect of profits and gains from industrial undertaking or enterprises engaged in infrastructure development etc. - How to find out
253A. Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone
253B. Deduction in respect of eligible start-up 807
254. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings - How to avail
254A.
255.
256.
257.
12
13
Typical problems on assessment of
14
Tax treatment of
15
Special
provisions governing assessment of firms and association of persons 313.
317. What are the conditions for claiming deduction of remuneration to partners under section 40(b)
318. What are the conditions for claiming deduction of interest to partners under section 40(b)
319. Carry forward and set-off of loss in the case of change in the constitution of firm892
16 Taxation of companies
17 Assessment of co-operative societies
18
352. Income from property held under trust partly for religious purposes and partly for other purposes
352A.
352C.
352D. Pass through status to Category I and Category II Alternative Investment Funds
361. Permanent Account Number (PAN)
366A. Reference to dispute resolution panel
367. Income escaping assessment and re-assessments
368. Issue of notice for reassessment under section 148/148A 1092
369. What are the provisions regarding rectification of mistake 1099
370. Time limit for completion of assessments/reassessments 1103
371. Provisions of section 155 1107
372. Problems on return of income and assessment 1109
372A. Obligation to furnish annual information return pertaining to financial transactions 1112
372B. Submission of statement by a non-resident having liaison office in India 1115
372C. Furnishing of information or document by an Indian concern 1115
372D. Reporting by producers of cinematograph films or persons engaged in specified activities 1115
20 Penalties and prosecutions
373. Penalties for defaults in brief 1116
374. Penalty for concealment/under-reporting of Income 1127
375. Who can levy penalty 1147
376. Power of Commissioner to reduce or waive penalty 1148
377. Procedure for imposition of penalty 1152
378. Time-limit for completion of penalty proceedings 1152
379. Offences and prosecutions 1155
380. Onus of proof 1159
21 Advance payment of tax
381. Income liable for advance tax 1161
382. Advance tax liability - Under different situations 1162
383. Interest payable by the assessee or Government 1163
384. Problems illustrating advance tax provisions 1163
22 Interest
385. Interest payable by the assessee 1165
386. Interest payable to assessee 1181
387. Procedure to be followed in calculation of interest 1185
388. Waiver or reduction of interest under sections 234A, 234B and 234C 1186
389. Chief Commissioner/Director General (Investigation) to reduce penal interest in certain cases 1186
390. Power of CBDT and Settlement Commission to reduce/waive interest 1187
391. Writ petition 1187
392. Problems illustrating computation of interest 1187
23 Tax deduction or collection at source
404. Scheme of tax deduction at source 1194
405. Deduction of tax from salaries 1198
405A. Tax deduction at source from withdrawal from employees provident fund scheme 1203
406. Deduction of tax at source from interest on securities 1207
407. Deduction of tax at source from dividends 1208
408. Deduction of tax at source from interest other than interest on securities 1209
409. Deduction of tax at source from winnings from lotteries or crossword puzzles, etc. 1213
409A. Deduction of tax at source from winnings from online games 1213
410. Deduction of tax at source from winnings from horse races 1217
411. Deduction of tax at source from payments to contractors or sub-contractors 1218
412. Deduction of tax at source from insurance commission 1224
on benefit/perquisite pertaining to business/profession 1253
420J. Deduction of tax from payment on transfer of virtual digital asset 1256
420K. Deduction of tax by firms from payment of remuneration/interest to partners1257
421. Deduction of tax at source from other sums 1257
422. Tax deduction from any income payable to non-resident unit-holders of Mutual Fund 1262
423. Deduction of tax at source in respect of units referred to in section 115AB 1263
424. Deduction of tax from income or long-term capital gain from foreign currency bonds/Global Depository Receipts 1263
425. Deduction of tax from income of Foreign Institutional Investors from securities 1264
426. Payment without tax deduction or with deduction at lower rate 1264
427. Processing of statements of tax deducted at source 1268
428. Other points for consideration 1268
429. Tax collection at source 1277
24 Refund of excess payments
430. Right to claim refund - When arises 1289 431. Who can claim refund 1289
432. How to claim refund 1289
433. Other points 1290
25 Appeals and revisions
443. Procedure for appeal by revenue when an identical question of law is pending before High Court/Supreme Court
Consequence of non-filing of appeal in respect of cases where the tax effect is less than the prescribed monetary limit
General Anti-avoidance Rule
480. Impermissible avoidance arrangement
481. When GAAR provisions are not applicable
482. Procedure for invoking GAAR
483. Clarifications given by Board 1355
30 Advance ruling
485. Constitution of the Board for Advance Ruling
486. Advance ruling
487. Procedure for filing application
488. Procedure on receipt of application
489. Applicability of advance ruling
490. Advance ruling to be void in certain circumstances
491. Powers of authority
491A.
31 Search, seizure and assessment
492. Powers regarding discovery, production of evidence, etc.
493. Search and seizure
494. Requisitioning of books of account, etc.
495. Application of assets seized or requisitioned
496. Power to call for information
497. Power of survey
498.
498A.
32 Transfer pricing
506. Taxation of international transaction
507. Computation of the arm’s length price
508. Arm’s length price - Computation of
509. Computation of arm’s length price in cases where more than one price is determined under most appropriate method
510. Reference to transfer pricing officer 1407
510A. Power of Board to make Safe Harbour Rules 1410
511. Maintenance of books of account and furnishing of report in respect of international group 1413
512. Report from accountant 1418
513. Specified domestic transactions 1418
514. Advance Pricing Agreement (APA) 1419
514A. Secondary adjustment in certain international transactions 1421
514B. Provisions pertaining to thin capitalisation 1425
514C. Important judicial rulings 1427
33 Business restructuring
515.
522.
523.
34 Alternative tax regime
541.
552.
554.
557.
558.
559.
35 Tax planning
565.
569.
571.
36 Miscellaneous
Tax rates
0.1
AMENDMENTS AT A GLANCE
EFFECTED BY THE FINANCE (NO. 2) ACT, 2024
0.1-1 Income-tax0.1-1a INDIVIDUAL/HUF/AOP/BOI/ARTIFICIAL JURIDICAL PERSON -
Senior citizen
Super senior citizen
Any other individual, any HUF/AOP/BOI 1
Para 0.1 Amendments at a glance I-30
Section 115BAC(1A)For the assessment year 2024-25
0.1-1b FIRM
0.1-1c COMPANY1. 2.
Alternative tax regime for a domestic company -
0.1-1d CO-OPERATIVE SOCIETY AND LOCAL AUTHORITY
Alternative tax regime for a resident co-operative society -
0.1-2 Surcharge on income-tax -
Section 115BAC(1A)From the assessment year 2025-26
as a % of income-tax
Note - see
0.1-2a SURCHARGE WHEN INDIVIDUAL/HUF/AOP, ETC., HAS DIVIDEND INCOME OR INCOME TAXABLE UNDER SECTION 111A/112/112ADifferent situations Nature and quantum of income of the assessee ( , individual, HUF, AOP, BOI or an artificial juridical person)
Surcharge on amount of income-tax computed on dividend income and income which is taxable under section 111A/112/112A
Surcharge on amount of income-tax computed on other incomes Situation 1
Situation 2 Situation 3 Situation 4 Situation 5 Situation 6
0.1-2b SURCHARGE WHEN A DOMESTIC COMPANY PAYS TAX UNDER SECTION 115BAA OR SECTION 115BAB -
0.1-2c SURCHARGE WHEN A RESIDENT CO-OPERATIVE SOCIETY PAYS TAX UNDER SECTION 115BAD/115BAE -
0.1-3
Para 0.1
0.1-4 Minimum alternate tax/alternate minimum tax -
Tax rateSurcharge -
Adjusted total income/book profit range
Individuals/HUF/AOP/ BOI/artificial juridical person Firm/local authority Co-operative society Domestic company
Notes –1. see 2. HEC -
0.1-5 Marginal relief -
Individual/HUF/AOP/artificial juridical person having income above Rs. 50 lakh -
Individual/HUF/AOP/artificial juridical person having income between Rs. 1 crore and Rs. 2 crore -
Individual/HUF/AOP/artificial juridical person having income between Rs. 2 crore and Rs. 5 crore -
Individual/HUF/AOP/artificial juridical person having income exceeding Rs. 5 crore -
Firms/local authorities having income above Rs. 1 crore -
Domestic company/foreign company/co-operative society having income above Rs. 1 crore -
Domestic company/foreign company/co-operative society having income above Rs. 10 crorecompany
0.1-5a INCOME RANGE WHEN MARGINAL RELIEF IS APPLICABLE -
Income range to attract marginal relief
Note
Para 0.1 Amendments at a glance
Income range
0.1-6 Maximum marginal tax rates
0.1-7 Rates for tax deduction/collection at source -
0.1-7a SURCHARGE, EDUCATION CESS, ETC., IN THE CASE OF TDS/TCS -
TDS/ TCS
Nature of payment
Recipient/collectee Whether health and education cess @ 4% applicable Whether surcharge applicable
Notes –1. 2.
Computation for marginal relief Step 1 Step 2Step 3
0.1-E2
Tax liability in the case of X -
Para 0.1
Section 111A (IT rate : 15%)
Section 112 (IT rate : 20%)
Section 112A (IT rate : 10% on capital gain exceeding Rs. 1 lakh)
Tax liability in the case of YSituation 3
Section 111A (IT rate : 15%)
Section 112 (IT rate : 20%)
Tax liability in the case of Z -
4
Add: Add:
Section 112A (IT rate : 10% on capital gain exceeding
1 lakh)
Tax liability in the case of A -
Tax on net income
Add:
Add:
Tax liability in the case of B -
Situation 6
Situation 1, 2 3
Section 111A (IT rate : 15%)
Section 112 (IT rate : 20%)
Situation 5
Situations 4 5
Section 112A (IT rate : 10% on capital gain exceeding Rs. 1 lakh)
Tax liability in the case of C -
Situations 4 5 Situation 6
Para 0.1
Section 111A (IT rate : 15%)
Section 112 (IT rate : 20%)
Tax liability in the case of D -
Tax liability in the case of E -
Section 111A (IT rate : 15%)
Section 112 (IT rate : 20%)
Section 112A (IT rate : 10%)
Tax liability in the case of F -
Section 111A (IT rate : 15%)
Section 112 (IT rate : 20%)
Situation 2
Section 112A (IT rate : 10% on capital gain
1 lakh)
Situation 3
Tax liability in the case of G -
Section 111A (IT rate : 15%)
Situation 1
Section 112 (IT rate : 20%)
Section 112A (IT rate : 10% on capital gain exceeding
1 lakh)
Section 112A (IT rate : 10% on capital gain
1 lakh)
Situations 4 5
Situation 6
Tax under normal provisions
Section 111A (IT rate : 15%) Section 112A (IT rate : 10% on capital gain exceeding Rs. 1 lakh)
Add: Situation 5
Tax under marginal relief
Step 1Step 2 -
0.1-E4
0.1-E5
Add
I-41
Amendment to section 10(4D)
Minimum alternate tax (under marginal relief)
Add e d e f c f
Add g
Less c h
Amendment to section 2(22) 0.2 22
a. 22 a
b. 22 b
c. 22 c
d. 22 d
e. Buy-back of shares - inter alia
Para 0.4
f 22 f see
Amendment to the definition of long-term capital asset [Sec. 2(42A)]
0.3 See
Amendment to section 10(4D)
0.4 4D inter alia
Para 0.5
Income of foreign company from lease rental of cruise ships [Sec. 10(15B)] 0.5 15B
1. 2. 3. 4. 5. What is “subsidiary company” -
Amendment to section 10(23C) 0.6 See
Amendment to section 10(23EE) 0.7 23EE
1. i.e.
2. 3.
Amendment to section 10(23FB) 0.8 23FB inter alia
Amendment to section 10(34A) 0.9