Important Sections In Income Tax

Important Sections in Income Tax SECTIONS

DETAILS

6(1)

Basic conditions to test as to when an individual is resident in India.

6(6)

Additional conditions to test when a resident individual is ordinarily resident in India.

10(1)

Agricultural income (exempt from tax, but is only taken into consideration for the purpose of rate calculation).

10(2A)

Share of profit in the firm (as a partner, as per the partnership deed is exempted).

10(10A)

Commuted pension, exempted fully or partly under this section.

10(13A)

House Rent Allowance, exempted up to a certain limit under this section .

10(32)

Clubbing of income.

10(34)

Dividend on or after 1st April 2003 from domestic company ,exempted under this section.

10(35)

Income from units of UTI or Mutual Fund, exempt under this section.

10(36)

Long Term Capital Gain On BSE Equity Shares.(The eligible equity shares for this purpose are the equity shares are any equity shares in a company being a constituent of BSE-500 Index of the Stock Exchange of Mumbai on March 1,2003)

10(38)

Long Term Capital Gain on transfer of Securities not chargeable to tax in case covered by Securities Transaction Tax(STT).

16(ii)

Entertainment Allowance (first included in salary income under the head “Salaries” and thereafter a deduction is given on the basis of government or non-government employees).

16(iii)

Professional tax or tax on employment (allowed as deduction from AY-90-91,SALARIES).

17

This section has been amended with a view to providing a clarification as to what constitutes “concession in the matter of rent”.

17(1)

Meaning of salary.

17(1)(ii)

Pension.

17(2) 24(a)

Perquisites. Standard deduction for Income from House Property.

24(b)

interest on borrowed capital is allowable as deduction from income from H.P. under this section.

32

Depreciation (Profits and Gains from Business& Profession-PGBP).

35

Deduction in respect of expenditure on scientific research (PGBP).

35D

Amortization of preliminary expenses (PGBP).

35DDB

Any payment for V.R.S. it will be taken as capital expenditure, it will be allowed in equal parts over 5 years.(PGBP)

36

Some deductions under this section: Bad Debts; expenditure in respect of promoting family planning among employees; banking cash transactions; interest on borrowed capital; bonus or commission to employees(payment basis); insurance premium on stock, cattle or for health of the employees(payment basis).(PGBP)

37(1)

General Deductions (expenses allowed for deduction satisfying certain conditions as mentioned in this section)-(PGBP).

40A (2)

Payments to relative is liable to be disallowed in computing business profit to the extent to be excessive or unreasonable having regard to fair market value.(PGBP)

40A (3)

Payment exceeding 20,000, made other than in crossed cheque or a crossed bank D/D,100% of such expenditure is disallowed.(PGBP) RULE 6DD: exception to section 40A (3).

40A(7)

Provision for payment of gratuity not applicable in calculating business income.(PGBP)

40(b)

To obtain deduction of remuneration paid to partners, conditions given in section 40(b) should be satisfied. (Income Tax Firms)

43B

Specified deductions only to be allowed on actual payment. (PGBP)

44AA

Compulsory maintenance of Books of Accounts applicable to some specific profession.(PGBP)

44AB

Compulsory Audit of Accounts.(PGBP)

44AD

Provides for a method of estimating income from the business of civil construction or supply of labour for civil construction work. (PGBP)

44AE

Provides for a method of estimating income from the business of hiring and plying of goods vehicles.(PGBP)

44AF

Provides for a method of estimating income from the business of retail trade. (PGBP)

54

Capital gains arising from the transfer of residential house property.(CG)

54B

Capital gains arising from the transfer of land used for agricultural purpose.(CG)

54D

Capital gains arising on compulsory acquisition of land and building, forming a part of industrial undertaking.(CG)

54F

Capital gains on transfer of a long-term capital asset other than a house property.(CG)

55A

Reference to valuation officer (with a view to ascertaining the fair market value of a capital asset , the concerned Assessing officer may refer the valuation of

the capital asset to the Valuation Officer appointed by the Income-tax Department in cases mentioned in this section).(CG) 64(1A)

Income of any minor child will be taxable in the hands of his/her working parent. If both father mother working person, then such income will be clubbed in the hands of the parent whose income is higher before inclusion of such income of the child.(Clubbing of Income)

80C

Deduction in case of life insurance premium, deferred annuity contribution to P.F., contribution to certain equity shares and debentures, etc.

80CCC

Deduction in respect of contribution to Pension Fund.

80CCD

Deduction in respect of contribution to pension scheme notified by Central Government.

80D

Deduction in respect of medical insurance premium.

80DD

Deduction in respect of maintenance including medical treatment of a handicapped dependant who is a person with disability.

80DDB

Deduction in respect of medical treatment.

80E

Deductions in respect of repayment of loan taken for higher education.

80G

Deductions in respect of donations to certain funds, charitable institutions, etc.

80LA

Deduction in respect of certain income of Offshore Banking Units and International Financial Services Centre.

80U

Deduction in case of person with disability.

139(1)

Time for filing return.

192

TDS(Tax Deducted at Source) on salaries.

193

TDS(Tax Deducted at Source) on interest on securities.

194

TDS(Tax Deducted at Source) on dividends.

194A

TDS(Tax Deducted at Source) on interest other than interest on securities.

194B

TDS(Tax Deducted at Source) on winning from lotteries and crossword puzzles.

194BB

TDS(Tax Deducted at Source) on winning from horse races. TDS(Tax Deducted at Source) from payment to contractors and sub-contractors.

194C 271F

Penalty for failure to furnish return of income under proviso to section 139 before the end of relevant assessment year.

272

Wealth Tax SECTIONS

DETAILS

2(ea)

Assets.

4

Deemed assets.

5

Assets exempt from tax.

IMPORTANT FORMS FORM

DETAILS

16

In case of TDS on salary. Certificate to be obtained from employer .

16A

Certificate to be issued in this FORM in all cases of deduction of tax at source except deduction at source in case of salary.

24Q

Return form number for deduction of tax at source in case of Salary.

26Q

Return form number for deduction of tax at source in all cases except deduction at source in case of salary.

49A

For application for PAN .

49B

For application for TAN.

3CA

Audit report in case where accounts of business or profession audited under any other law.

3CB

Audit report in case of person carrying on business or profession in other cases.

3CD

Statement of particulars required to be furnished u/s 44AB.

ITNS 280

For payment of tax/interests/penalties/TDS.

ITNS 281

For payment of TDS.

27A

Physical Form.