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Indian Budget 2006-07 on Income Tax

Union Budget of India - Income Tax
Income Tax
• No changes in the rates of personal income tax or corporate income tax.

• No new taxes are imposed.
• Abolishment of one by six scheme for filing of income tax returns.
• 25% across-the-board increase in securities transaction tax
• Exemption from taxes to cooperative lending banks and rural development banks under Section 80(B).
• Fixed deposits in scheduled commercial banks with at least five year maturity will get tax exemption for
savings under section 80C of Income Tax Act.
• The Rs 10,000 exemption limit for investment in pension funds under Section 80CCC has been removed
but these investments would be brought under Sec 80C subject to a ceiling of Rs 1,00,000.
• Donations to only relgious institutions will be exempted from tax.
• Minimum alternative tax on corporates increased from 7.5 per cent to 10 per cent.
• Constituency allowances of MLAs to be treated as constituency allowances of MPs for income tax
purposes.
• Fringe Benefit Tax modified. Threshhold limits raised, but FBT will remain as it is justified for ensuring
horizontal equity.
• To check tax evasion more items would come under annual information return reporting.
Income Tax Introduction

The direct tax which is paid by individual to the Central Government of India is known as Income Tax. It is imposed on our
income and plays a vital role in the economic growth & stability of our country. For years the Government is generating
revenue through this tax system.
The word 'Tax' originated from the 'Taxation.' which mean 'Estimate.' Hence, 'Income Tax' mean 'Income Estimate,' which
helps the government to know the actual economic strength of a person. It is also a way to set up an economic standard for
general people. It helps the Government to know the distribution of money among country's people.
Income Tax has been in force in different forms since years. If we go through the history of India, we get relevant information
regarding the taxation system of India. In ancient history, it is mentioned that at about such system which were imposed on the
income, expenditure and other subject. Even information of such is given Manu Smriti and Arthasatra which confirms its
existence at that time.
In modern India, Income Tax came into existence in 1860 with the implementation of first Income Tax Act. After
implementation of this Act, people became aware of the actual meaning of Income Tax. This act was in force for first five
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years. After this, in 1865, second Act came into force. There were major changes in this Act relative to the first. It proved itself
as a good factor for the growth of our economy. With this Act a new concept of Agriculture Income came into existence.
After this, different new Act was also implemented. The most important of them is the Income Tax Act, 1961. According to
ruling of Income Tax Act, 1961, any person whose salary from any source of income is more than the maximum limit of
unchargeable amount will be liable to pay Income Tax. There is also a provision of deduction and exemptions in Income Tax,
depending upon the type of assessee, source of income, residential status and investment in saving schemes. Income tax
rates are a matter of chang, which is declared by Ministry of Finance, Government of India regularly, usually on annual basis.
Income Tax Calculator

How to calculate tax
Example 1: Let us take a case where the assessee's income is Rs. 2,10,000.
• According to the Income Tax Slab, the first 1,00,000 is not taxable.
• The next Rs. 50,000 is taxable @10%.
• 10% of Rs. 50,000 is Rs. 5,000.
• The remaining Rs. 60,000 i.e. 2,10,000 - (1,00,000+50,000) is taxable @20%.
• 20% of Rs. 60,000 is Rs. 12,000.
• Therefore, the net Income Tax Payable is Rs. 5,000 + Rs. 12,000 i.e. Rs. 17,000.
Example 2: Let us take a case where the assessee is women and whose taxable income is Rs. 2,40,000.
• 10% of Rs. 15,000 is Rs. 1,500.
• The remaining Rs. 90,000 i.e. 2,40,000 - (1,35,000+15,000) is taxable @20%.
• 20% of Rs. 90,000 is Rs. 18,000.
Example 3: Let us take a case where the assessee is senior citizen and whose taxable income is Rs. 2,90,000.
• 20% of Rs. 65,000 is Rs. 13,000.
• The next Rs. 40,000 i.e. 2,90,000 - (1,85,000+65,000) is taxable @30%.
• 30% of Rs. 40,000 is Rs. 12,000.
(If the assesse claims any rebate/ exemption, the claimed amount will be deducted from his income with reference to the law
of Income Tax Act before calculating the tax.)
Note:
• Surcharge @ 10% applicable if total income exceeds Rs. 8.5 lakh for A.Y. 2005-06 and Rs. 10 lakh for A.Y. 2006-07.
• There is a new section 80C according to which a person can get rebate upto Rs. 1,00,000 against insurance
premium, PF contributions and other such schemes.
• In case of higher education there is a deduction in tax for a maximum period of 8 years.

• Marginal relief would be provided to ensure that the additional income tax payable including surcharge, on the excess
of income over Rs. 10,00,000 (Rs. 8.5 lakh for A.Y. 2005-06) is limited to the amount by which the income is more
than Rs. 10 lakh (Rs. 8.5 lakh for A.Y. 2005-06).
• Education cess @ 2% on tax plus surcharge.
Income Tax Department

Income Tax Department is one of the important part of Ministry of Finance, Government of India. It is one of the important
resources of Government of India through which every year it generates a huge amount of revenue for the development of the
country. It also operates through its subordinate departments, which help it to perform its responsibility on time in a better
manner.
For understanding Income Tax Department in a better way it can be divided into three parts as given below:
Introduction To Department:
Central Board of Direct Taxes (CBDT)
IIncome Tax Offices
Heads of Income
Under chapter 4 of Income Tax Act, 1961 (Section 14), income of a person is calculated under various defined heads of
income. The total income are first assessed under heads of income and then it is charged for Income Tax as under rules of
Income Tax Act. According to Section 14 of Income Tax Act, 1961, there are following heads of income under which total
income of a person is calculated:
• Heads of Income: Salary
• Heads of Income: House Property
• Heads of Income: Profit In Business/ Profession
• Heads of Income: Capital Gains
• Heads of Income: Other Sources
Heads of Income: Salary

What is Salary:
Income under heads of salary is defined as remuneration received by an individual for services rendered by him to undertake
a contract whether it is expressed or implied. According to Income Tax Act there are following conditions where all such
remuneration are chargeable to income tax:
• When due from the former employer or present employer in the previous year, whether paid or not
• When paid or allowed in the previous year, by or on behalf of a former employer or present employer, though not due
or before it becomes due.
• When arrears of salary is paid in the previous year by or on behalf of a former employer or present employer, if not
charged to tax in the period to which it relates.
What Income Comes Under Head of Salary:
Under section 17 of the Income Tax Act, 1961 there are following incomes which comes under head of salary:

1. Salary (including advance salary)
2. Wages
3. Fees
4. Commissions
5. Pensions
6. Annuity
7. Perquisite
8. Gratuity
9. Annual Bonus
10. Income From Provident Fund
11. Leave Encashment
12. Allowance
13. Awards
What is Leave Encashment:
Leave encashment is the salary received by an individual for leave period. It is a chargeable income whether he is a
government employee or not. Under section 10(10AA) (i) there is also a provision of exemption in case of leave encashment
depending upon whether he is a government employee or other employees.
What is Annuity:
It is an annual income received by the employee from his employer. It may be paid by the employer as voluntarily or on
account of contractual agreement. It is not taxable until the right to receive the same arises. Under section 56, Income Tax Act,
1961 other annuities come under a will or granted by a life insurance company or accruing as a result of contract which comes
as income under from other sources.
What is Gratuity:
It is salary received by an individual paid by the employee at the time of his retirement or by his legal heir in the case of death
of the employee.
What is Allowance:
It is the amount received by an individual paid by his/her employer in addition to salary. Under section 15 of the Income Tax
Act, 1961 these allowance are taxable excluding few condition where they are entitled of deduction/ exemptions.
Under Income Tax Act following types of allowance are defined
House Rent Allowance:

Under sections 10(13A) of Income Tax Act, 1961 allowance is defined as an amount received by an employee paid by his/ her
employer as a rent of his/her house. It is a taxable income. There is no exemption in tax if he is living in his own house or
house for which he is not paying rent. There are following amount which are exempt from tax:
• Actual house rent paid by that individual

• Rent paid for the accommodation over 10% of the salary
• 50% of the salary if house is placed at Delhi, Mumbai, Kolkata, Chennai or 40% of the salary in it is placed in any
other city
Entertainment Allowance:
It is the amount paid by employer for availing entertainment services. Under section 16(ii) of Income Tax Act, 1961 it is entitled
to deduction in tax from is salary. But in this case deduction is given to his gross salary which also includes entertainment
allowance. Deduction in tax against this allowance can be divided into two parts :
In case of Government employee entitled to minimum deduction of
• Entertainment allowance received

• 20% of basic salary excluding any other allowance
• Rs. 5000
In case of other employee entitled to minimum deduction of
• (a) Entertainment allowance received

• 20% of basic salary excluding any other allowance
• Rs. 7500
• Entertainment allowance received during 1954-1955
Other Special Allowances
• Children Education Allowance

• Tribal Area Allowance
• Hostel Expenditure Allowance
• Remote Area Allowance
• Compensatory Field Area Allowance
• Counter Insurgency Allowance
• Border Area Allowance
• Hilly Area Allowance
Allowances for there is a provision of exempt in income tax are:
• Allowance given to a citizen of India, who is a government employee, for rendering services outside India
• Allowances given to Judges of High Courts
• Allowance given Judges of Supreme Court
• Allowances received by an employee of UNO
What is Perquisite
Under section 17(2) of Income Tax Act, 1961 perquisite is defined as:
• Amount paid for the rent-free accommodation provided to the assessee by his employer
• Any concession in the matter of rent respecting any accommodation provided to the assessee by his employer
• Any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases:
1. By a company to an employee, who is a director thereof
2. By a company to an employee being a person who has a substantial interest in the company
3. By any employer to an employee whose income under the head 'Salaries' exceeds Rs.24000 excluding the
value of non monetary benefits or amenities
4. Any sum paid by the employer in respect of any obligation which, but for such payment, would have been
payable by the assessee
5. Any sum payable by the employer whether directly or through a fund, other than a recognised provident fund
or EPF, to effect an assurance on the life of the assessee or to effect a contract for an annuity
There are following perquisites which are tax free:
• Medical facility
• Medical reimbursement

• Refreshments
• Subsidised Luch/ Dinner provided by employer
• Facilities For Recreation
• Telephone Bills
• Products at concessional rate to employee sold by his/ her employer
• Insurance premium paid by employer
• Loans to employees by given by employer
• Transportation
• Training
• House without rent
• Residence Facility to member of Parliament, judges of High Court/ Supreme Court
• Conveyance to member of Parliament, judges of High Court/ Supreme Court
• Contribution of employers to employee's pension, annuity schemes and group insurance
Heads of Income: House Property

What Is Heads of House Property
According to Chapter 4, Section 22 - 27 of Income Tax Act, 1961 there is a provision of income under head of house property.
In every section from 22-27 there are detail specification of house property income. It is defined as income earned by a person
through his house or land.
What Income Comes Under Head of House Property:
Annual value of building or land owned by assessee. There is a charge on the potential of property to generate incomes not on
the rent received. But if property is used for making profit in business then it will be taxable not under this head but will be
taxable under head of profit in business/ profession.
How to calculate annual value of property:
According to annual value, house property is calculated as
1. Annual value of a house is zero if property is in the occupation of the owner for his residence for the whole year & if
no other benefit is availed by owner from his property. There will be no deductions as given under section 24 except
deduction interest on borrowed capital
2. If the owner lets out the house or a part thereof for any period of time during the previous year the annual value of the
property or part has to be calculated for the whole year and the proportionate annual value of the period for which the
house or any part thereof was in the occupation of the owner for his own residence shall be deducted from the gross
annual value. The assessee in such cases cannot claim deduction under section 24 in excess of the annual value so
determined
3. The assessee occupies more than one house for his residence the above exemption is applicable only to one such
house at the option of the assessee. The annual value of the other house or houses shall be computed as if the
house or houses are let
4. In case where the assessee has only one residential house but it cannot be occupied by the owner by reason of that
owing to his employment, business or profession carried out on at any other place, he has to reside at that other
place in a building not belonging to him, the annual value of such house shall be taken to be nil if the house is not
actually let and no other benefit is derived by the owner from such house. The assessee cannot claim any deduction
in such case as allowable under section 24 of the Act except for interest on borrowed capital subject to a maximum of
Rs. 15,000/-
Heads of Income: Profit in Business/ Profession

According to Income Tax Act, 1961 income under this head is defined as the income earned by assessee as a profit or gain in
his business or profession. Income under this head must follow these conditions:
• There must be a business/ profession

• Business/ profession is being carried by assessee
• Business/ profession have been carried out by assessee in assessment year for which income tax is filling
What Income Comes Under Head of Profit in Business:
• Profits and gains assessee from any business or profession during assessment year
• Any payment or compensation due or received by a person for his services to organization as a part of his business
• Making profit in trade Income of professional or organization against services provided by that professional/
organization
• Profits on sale of a license granted under the Imports (Control) Order, 1955, (EXIM control Act, 1947)
• Cash received or due by any person against exports under government schemes
• Any benefit whether it is not in cash coming from business/ profession
• Any profit, salary, bonus or commission received by company partners
Heads of Income: Capital Gains

What is Capital Gain:
According to Income Tax Act,1961 heads of capital gain is defined as gains derived on transfer of capital asset. Capital Gain is
the profit or gain of an assessee coming from the transfer of a capital asset effected during the previous year or assessment
year. "Capital Asset" and transfer are predefined in income tax act.
What is Capital Asset:
Under section 2(14) of the Income Tax Act,1961 Capital Assets is defined as property of any kind held by assesse including
property held for his business or profession. It includes all type real property as well as all rights in property. It is also defined
as gains on transfer of assets in which there in no cost of acquisition like:
• Goodwill of business generated by assessee

• Tenacy rights
• Stage carriage permits
• Loom hours
• Right to manufacture
• Processing & production of any article or things
Assets Which Don't Come Under Heads of Capital Assets
According to Income Tax Act,1961 there are few assets which don't form a part of Capital Assets, which are as follows:
• Stock of goods and raw materials used by assessee for his business or profession
• Those property which are movable like wearing apparel, furniture, automobile, phone, household goods etc. Held by
assessee. But Jewelry which is also an movable assets comes under heads of Capital Assets
• Agricultural property in India. But agriculture land coming under municipal limits (in area having population ore than
10,000) comes under Capital Assets. Agriculture lands within 8KM from municipal limit also comes Capital Assets if it
is notified by the central government of India
• Few Gold Bonds issued by government
• Few special bonds issued by central government like Special Bearer Bonds, 1991

Transfer of Capital Assets
Under Section 2(47) of The Income Tax Act,1961 transfer of capital assets is defined as:
• Sale, exchange and relinquishment of assets

• Extinguishment of any rights in capital assets
• Acquisition of capital assets or rights
• Conversion of capital asset by its owner as stock in trade of his business, it may be also a term transfer
• Transfer of immovable property under Section 53A of Transfer of Property Act, 1882
• Any transaction by which an assessee become enable to act as a member of cooperative society
• Any transaction by which an assessee acquire shares in cooperative society
Heads of Income: Other Sources

Every type of income comes under a specified heads. But there are few incomes, which don't come under any of following
heads:
• Salary
• House Property
• Profit In Business/ Profession
• Capital Gains
So under Section 56(2) of Income Tax Act,1962 all such income comes in this heads of income. There are following incomes
which are taxed under this heads
• Income coming as a dividend paid by a company to an assessee

• Income coming from winning in lottery, crossword puzzles, races, card games, gambling or other such sports
• Income coming as an amount received by assessee from his employer as a fund for welfare of employee
• Income as an interest on securities
• Income coming by letting on hire machinery, plant, furniture, building or other goods Income coming from insurance
policy
Income Tax Return

Income Tax Return is an important part of Income Tax. It is the way by which an assesse process for paying his tax to Income
Tax Department. Income Tax Return has several part or phases which we follow for paying tax. To know Income Tax Return in
an easy way, it is divided into the following sub sections:
What Is Income Tax Return
Income Tax Return Form
Authorised Signatory
Income Tax Return Filing
Income Tax Return

"Income Tax Return" is a term which is oftenly used when we talk about income tax. It is a way by which we pay this tax.
When total annual income of a person, including all sources, is more than maximum unchargeable limitation ( At present it is
Rs. 1,00,000/-) then that person is liable to pay income tax.
Under section 139(1) of the Income Tax Act, there are additional six conditions, which forces a person to file his income tax
return. These condition are:-
1. Owner of a Motor vehicle

2. Owner of immovable property
3. Person who does foreign-travel
4. Subscribers of a telephone
5. Holder of a credit card
6. Incurs expenses on himself
Income Tax Return Forms
Forms Used In Filling of Income Tax Return Are As Given Below:
Form No. Assessee Type

1 For Companies
2 For those who have their own business income and claiming exemption u/s 11 of the I.T. Act,
1961
2A For those whose income source is neither business nor profession and income is not more than
Rs. 2 lakhs
2B Return of Income for the block period like search & seizure cases
2C For those who ambit of one out of six scheme
2D This is also known as Saral Form. It is for non Corporate Assessees other than persons who
claims exemption under Sec. 11
2E Nay Saral Form- For resident individual/Hindu undivided family not having income from
business/profession/capital gains/agricultural income
3 For those who is not a company and those deriving income from property held for charitable and
religious purposes claiming exemption under section 11 and whose total income does not include
"profits and gains of business or profession
3A For assessees including companies claming exemption under section 11
16AA Certificate for tax deducted at source from income chargeable under the head "Salaries" - cum -
Return of income
49A For allotment of Permanent Account Number under section of 139A of Income Tax Act
60 It is a declaration for required to fill by those person who has neither a PAN nor a General Index
Number (GIR) number & making payments in cash with respect to transactions in clauses (i) to
(vii) of rule 114B, as given below:
• Sale and purchase of vehicle

• Time deposit of amount more than Rs. 50000/- to any banking institutions
• Contracts for sale or purchase of securities of amount more than Rs. 10,00,000
• Sale & purchase of property worth Rs. 5,00,000/- or more

• Open an account (which is not a time deposit) with a banking institutions
• Application for connection of phone (including cell phones)
• Payment of hotel/restaurants bills more than Rs. 25,000/- at a time
61 For those whose source of income is agriculture and not any other chargeable tax mentioned
under clauses mentioned above
Authorized Signatory
Income tax return must be signed by the authorized person. Under section 140 of the Income Tax Act,1961 the Return form
must be signed & verified by the authorized person according to the following chart:-
Case I - Individual
• By himself
• If individual is not in India at the time of filing then by the person duly authorized by him on his behalf.
• If individual lacking mentally to fill this then it must be signed by his/her parent/guardian or any person who is
adequate for this on his/her behalf.
• If due to any other reason, individual is not in condition to this, then it must be signed by a person duly authorized by
him/her.
Case II - Company
• By Managing Director of the company. Due to any reason if such managing director is not available then any of
directors can sign on the return form
• If company is a non-resident company then it must be signed by that person who holds Power of Attorney for this
• If company is on wind up then by should be signed by liquidator
• · If Government undertaking company then it should be signed by the officer authorized by the government for this
Case III - Firm
• By authorized managing partner. Due to any reason if he is not available then by any partners
Case IV - Local Authority
• By its authorized head officer
Case V - Political Party
• Chief Executive Officer or Secretary
Case VI - Association
• Chief executive officer of the association or any member of association
* Note: All the income tax returns which are not filled completely or signed by an unauthorized person will be rejected. Return
file will be approved only if it follows all the rule regulation of Income Tax Act 1961. Any type of wrong information may be the
cause of rejection of return filing
Income Tax Return Filing
There are following steps that must be followed for income tax return filing: -
• See the Heads of Income and decide which type of assessee you are
• Select return form according to the type of assessee from the list
• Before filing form pls. read the form carefully
• Use black ball pen or other as instructed in form
• There should not be any overwriting on the form
• Fill name, father's name, date of birth as mentioned in your educational certificates
• Put signature of authorized person (pls. see the list of authorised signatory) on the form at right place
• Use your own PAN/TAN/GIR number for filing the income tax return
• Use correct options/code to show your status in the income tax return form
• Assessment year must be mentioned on return form clearly. Assessment year is the last financial year for which tax
has to pay
• Mention your all source of income with income amount clearly and correctly
• Calculate your taxable amount including surcharges and deducting rebate from your income
• Attached all required documents for getting deduction/ rebate or exemption in tax
• After filling form pls. recheck that all the information given by you is correct and on proper place
• Don't give any wrong information in the form
• Go to income tax department and submit the form to concerning income tax assessing officer
• File your income tax return before the last date of return filing. Last date for an individual having only salary income is
30th June as well as last date for individual having business income (if auditing not required) is 31st august.
Income Tax Rates

For General
For Year 2005-2006
Taxable Annual Income Slab (In Rs.) Tax Rate (In %)

0 - 1,00,000 Nil
1,00,001 - 1,50,000 10%
1,50,001 - 2,50,000 20%
More than 2,50,001 30%
For Women
For Year 2005-2006

0 - 1,35,000 Nil
1,35,001 - 1,50,000 10%
1,50,001 - 2,50,000 20%

More than 2,50,001 30%
For Senior Citizen

For Year 2005-2006

0 - 1,85,000 Nil
1,85,001 - 2,50,000 20%
More than 2,50,001 30%
Note:
• Surcharge @ 10% applicable if total income exceeds Rs. 8.5 lakh for A.Y. 2005-06 and Rs. 10 lakh for A.Y. 2006-07.
• There is a new section 80C according to which a person can get rebate upto Rs. 1,00,000 against insurance
premium, PF contributions and other such schemes.
• In case of higher education there is a deduction in tax for a maximum period of 8 years.
• Marginal relief would be provided to ensure that the additional income tax payable including surcharge, on the excess
of income over Rs. 10,00,000 (Rs. 8.5 lakh for A.Y. 2005-06) is limited to the amount by which the income is more
than Rs. 10 lakh (Rs. 8.5 lakh for A.Y. 2005-06).
• Education cess @ 2% on tax plus surcharge.
Income Tax Dates

It is very important to filing of income tax return before the last date of return filing. Last date for an individual having only
salary income is 30th June as well as last date for individual having business income (if auditing not required) is 31st august.
There is a list of important dates for income tax return filing:
List of Dates:
14th January
Submission of tax deduction against interest, dividend or any other amount paid to non-resident during 1st,October -
31st,December. Form No : 27
15th March
In case of other than company - Payment of 3rd installment of advance for the financial year
In case of a company - Payment of 4th installment of advance for the financial year
14th April
Submission of statement of tax deduction against interest, dividend or amount paid to non-resident during 1st,January -
31st,March. Form No : 27
30th April
(i) Certificates of such taxes which are deducted due to payment given to employees as their salary. From No : 16
(ii) Certificates of such taxes, which are deducted due to amount, paid as insurance commissions. Form No : 16A
(iii) Certificate of tax deducted other than salary Form No: 16A
(iv) filing annual return of dividend and income in terms of units under section 206 of Income Tax Act 1961. Form No : 26

31st May
(i) filing of annual return against earning from prize, lottery. Form No : 26B
(ii) filing of annual return against earning from horse races. Form No : 26BB
(iii) filing of annual return against salary paid. Form No : 24
15th June
In case of company - Payment of 1st installment of advance for the financial year
30th June
(i) filing of income tax return if assessee is not a corporate/ cooperative and having no source of income from business/
profession. Form No: 3/2A
(ii) filing of income tax return against insurance commissions/ commission paid without deduction of tax. Form No : 26D, 26E
(iii) filing of income tax return against interest either on securities or on any other. Form No : 25, 26A
(iv) filing of income tax return against payment to contractors Form No : 26C
(v) filing of income tax return against deposits under national saving schemes Form No : 26F
(vi) filing of income tax return against payment for purchasing of Mutual Funds Form No : 26G
(vii) filing of income tax return against payment of commission on sale of lottery Form No : 26H
(viii) filing of income tax return against payment of rent Form No : 26J
14th July
Submitting date for the statement of tax deducted from interest on amount paid to non residents during 1st,April - 30th,June
Form No : 27
31st August
filing of income tax return if
(i) Assessee is not a corporate/ cooperative
(ii) There is no need of auditing accounts under any law
(iii) Total income includes income through business or other profession.
Form No: 2
15th September
In case of other than company/ corporate : Payment of 1st installment of advance income tax
In case of a company/ corporate : Payment of 2nd installment of advance income tax
14th October
Submitting date for the statement of deduction of tax interest, dividend and other amount paid to non resident during 1st July -
30th September. Form No : 27
31st October
(i) In case of non corporate : Submitting auditing report under section 44AB of Income Tax Act. Form No : 3CA, 3CB, 3CC,
3CD, 3CE
(ii) In case of cooperative/ non corporate : filing of income tax return of the relevant assessment year if it require to get his
account audited under Income Tax Act. Form No : 2
filing of half yearly return against tax collected during 1st April - 30th September Form No : 27EA, 27EB, 27EC, 27ED
Date of submission of annual audited account for approved programs under section 35 (2AA) of Income Tax Act 1961.
30th November
In case of a company - filing of annual return with auditing report under section 44AB
For annual return filing : Form 1
For submitting auditing report : Form 3CA & 3CD
15th December
In case of other than company - Payment of 2nd installment of advance for the financial year
In case of a company - Payment of 3rd installment of advance for the financial year
Income Tax Deductions
In Case of Donations For Charity

Under section 80-G of the Income Tax Act, there are following relief in case of Donations:
• Donation to certain funds, approved education institutions of national importance, charitable institutions.
• The deduction will be 50% of the amount.
• Deduction may be 100% if donation is given to Prime Minister Relief Funds, National Foundation for Communal
Harmony, Blood Transfusion Council, The Africa Fund, Earth-quake Relief Fund.
In Case of Physically Handicapped Persons
• A person who is suffering from permanent physical disability or mental retardation is entitled to deduction upto Rs.
40,000.
• Handicapped must be certified by a physician, surgeon or a psychiatrist who is working in a government hospital.
Under section 80DD and 80U of Income Tax Act, physical disability must be one of the following:
1. Permanent or more than 50% disability in limb

2. Permanent or more than 60% disability in 2 or more limb
3. Permanent loss of voice
4. Permanent blindness
5. Mental Retardation in which mental intelligence is less than 50% of normal required intelligence
In Case of Treatment of Handicapped Dependents

All the person who are dependent on physically handicapped person comes under this category. There is provision of
deduction in tax against expenditure on medical treatment, training & rehabilitation of handicapped dependents or amount paid
in an approved scheme of LIC or UTI.
In Case of Repayment of Loan Taken For Higher Education

There is deduction in income tax in respect of repayment of loan taken by a student from a bank or any other financial
institutions for higher education in India or worldwide.
In Case of Contribution To Pension Fund

Under section 80CCC there is a provision of deduction to an individual for any amount paid to keep in force annuity plan of the
LIC for receiving pension from a fund set up by that corporation, as per section 10(23AAB) of Income Tax Act,1961. The
amount received by assessee or his nominee will be taxable. There will be no rebate under section 88 to the persons whose
deduction under this section has been approved.
In Case of Amount Paid as House Rent

Under section 80GG of the Income Tax Act there is a provision of deduction in tax on amount paid by a person (not a salaried
person getting housing allowance) for residential accommodation. Deduction in tax will be measured under following
parameters :-
• The excess of actual rent paid over 10% of the total income (excluding long term capital gain & income, as per
section 115A or 115D of Income Tax Act, 1961)
• Deduction will not be allowed to an assessee who owns an residential accommodation at a place where he is
temporarily residing

• Deduction will not be allowed to an assessee who owns an residential accommodation at any place and has also
claimed for deduction in respect of self occupied property
In Case of Remuneration Received in Foreign Currency by Employer

Under section 80RR an individual resident of India who is an author or writer or photographer or TV/ film cameraman or TV/
film director or musician or actor or sport person or other such artist whose source of income is foreign income and brings
income to India according to foreign exchange regulation, then he is entitled to get a deduction of amount equal to 75% of
such income as it is brought in India in convertible foreign exchange. This amount will be deducted from his taxable income
within the period 6 months or period allowed by Chief Commissioner of Income Tax Department. It is necessary to show the
documents in favor of your claim.
In Case of Remuneration Received For Services Rendered Outside India

Under section 80RRA of the income tax act, an individual who is getting remuneration in a foreign currency from an employer
for his service in outside of India, will get a deduction of 75% of such income brought into India. This amount will be deducted
from his taxable income within the period 6 months or period allowed by Chief Commissioner of Income Tax Department. It is
necessary to show the documents in favor of your claim.
In Case of Certain Investment

Under section of 80L of the Income Tax Act, there are few investment which is a matter of deduction in taxable amount. Here
an assessee will get a deduction of amount upto Rs.12,000 - 15,000 from income on certain specified investments in
government securities, UTI mutual funds, bonds and other tax saving schemes. An assessee will be entitled for deduction from
his taxable income if he is getting interest or dividend on certain investment which are as follows :
• Investment in Securities of central or state government

• Investment in National Saving Schemes
• Investment in Debentures or Bonds of an institution/ authority/ public sector company/ cooperative society or other
such organization notified by central government.
• Investment in under National Deposit Schemes as notified by Central Government
• Investment in under other schemes which are notified by central government like national saving schemes, time
deposit schemes, recurring deposit schemes.
• Investment in under monthly income scheme of the post office
• Investment in units of UTI and Mutual Funds (under Section 10(23D) of the Income Tax Act)
• Investment in with banking institutions
• Investment in financial institution working for Industrial Development of India
• Investment in an public company limited working for providing long term financing of housing accommodation
• Investment in such authorities which are working for planning & development of cities and villages
• Investment in co-operative societies
Income Tax Exemptions

According to Chapter III of the Income Tax Act, 1961 there is a provision of exemptions in income tax. There are few specified
income on which a person can get exemptions. It means that at the time of calculating annual income, this type of income will
not be added. For claiming any of these exemptions, it is necessary to furnish documents which shows that your income
comes under this list. If a person don't furnish required documents then he/ she will not be entitled for this
Income Type Under Section

Agriculture Income 10(1)
Receipts from a Hindu Undivided Family being paid out of family's income or in the 10(2)
case of an impartible estate belonging to family being paid out of such estate's
income

Share of partner in total income of a firm which is assessed separately as such. 10(2A)
Receipts being in the nature of casual and non-recurring nature not exceeding Rs. 10(3)
5,000/- (Rs. 2500/- in the case of winnings from horse races, etc).
Interest on securities and bonds including premium on redemption of bonds by Non 10(4)(i)
Resident as notified by Central Government.
Interests on amounts in Non-resident (External) Account in any bank in India being 10(4)(ii)
maintained as per FERA, 1973 and rules thereunder by an individual..
Interest on specified Central Government's Savings Certificates which were 10(4B)

subscribed to in convertible foreign exchange remitted from a country outside India
as per FERA and rules thereunder by an individual citizen or a person of Indian
Origin..
Value of Leave Travel Concession or assistance not exceeding the amount actually 10(5)
spent.
Specified remuneration to a foreigner and non-resident individual for shooting of film 10(5A)
in India who comes solely for such purpose.
Income-tax paid by the employer carrying on scientific research in respect of the 10(5B)
salary income of certain technicians from abroad commencing from 1.4.93 subject
to conditions stated therin.
Incomes of foreginers as passage money. 10(6)(i)
Remuneration received by an ambassador, diplomats, etc. as specified. 10(6)(ii)
Remuneration received by employees of foreign companies in respect of services 10(6)(vi)

rendered during stay in India subject to conditions as specified.
Remuneration received from foreign philanthropic institutions etc. in respect of 10(6)(via)

services rendered in India subject to both the institutions and the purposes thereof
being approved by the Central Govt.
Income-tax paid by the employer carrying on scientific research in respect of the 10(6)(viia)
salary income of certain technicians from abroad commencing from 1.4.88 till
31.3.93 subject to conditions stated therein.
Salaries to non-resident employed on a foreign ship subject to aggregate stay of not 10(6)(viii)
more than 90 days in the previous year.
Salaries to non-residents professors or teachers. 10(6)(ix)
Income of individuals engaged in research work in India under duly approved 10(6)(x)
research schemes.
Remuneration received from foreign government for training in a government office 10(6)(xi)
or undertaking as employee.
Death-cum-retirement gratuity payable to specified members of civil or defence 10(10)(i)

services.
Gratuity not exceeding Rs.3 ½ Lakhs payable under the Payment of Gratuity Act, 10(10)(ii)
1972
Any other gratuity not exceeding Rs. 2 ½ Lakhs received by employee on 10(10)(iii)
retirement or termination of his services or by legal heirs on death of employee

limited to 15 days salary for each completed year of service.
Receipt in respect of commutation of pension as per specified limits. 10(10A)
Leave encashment not exceeding 8 months salary and subject to specified 10(10AA)
conditions & limits.
Compensation paid to employees on account of retrenchment under Industrial 10(10B)

Disputes Act, 1947: Ascertainment of amount to be either minimum Rs. 50,000 or
as per the said Act whichever is less.
Payments made under Bhopal Gas Leak Disaster Act, 1985. 10(10BB)
Receipt of amount on voluntary retirement upto Rs. 5,00,000 subject to specified 10(10c)
scheme and guidelines and necessary approval.
Payment on a Life Insurance Policy, including bonus thereon but excluding 10(10D)
therefrom amounts received u/s 80DDA(3).
Receipt of Payment from Public Provident Fund or Statutory Provident Fund. 10(11)
Payment to employee from recognised provident fund in respect of accumulated 10(12)

balance standing to the credit thereof.
Receipt of Payment from Superannuation Fund subject to specified conditions and 10(13)
limits.
Special allowance to employee viz., house rent allowance. 10(13A)
Special benefit to employees within meaning of s.17(2) subject to conditions stated 10(14)
therein.
Receipt of premium on account of Exchange risk from borrower of foreign currency. 10(14A)
Receipt of interest or premium on redemption etc. on notified securities, bonds etc. 10(15)(i)
such as monthly payment on 15-year Annuity Certificates subject to specified
condition and limits.
Interest on the new Capital Investment Bonds. 10 (15)(iib)
Interest income from notified Relief Bonds w.e.f., assessment year 1989-90. 10 (15)(iic)
Interest on notified bonds owned by a non-resident etc. and bought in foreign 10 (15)(iid)
exchange subject to certain conditions.
Interest on securities under the Ceylon Monetary Law Act, 1949 10 (15)(iii)
Interest payable to any bank incorporated outside India and approved by RBI. 10 (15)(iiia)
Receipt of interest from Govt. etc. on moneys lent to them from sources outside 10 (15)(iv)(a)
India.
Receipt of interest from industrial undertaking in India being approved foreign 10 (15)(iv)(b)
financial institutions in respect of moneys lent to it.
Receipt of interest from industrial undertaking in India in respect of moneys lent to it 10 (15)(iv)(c)
outside India for purchases of raw materials, plant & machinery, etc. from abroad.
Receipt of interest from specified financial institution in India in respect of moneys 10 (15)(uv)(d)
lent to it from sources outside India.
Receipt of interest from financial institution other than those covered by 15(iv)(d) 10 (15)(iv)(e)

above in respect of moneys lent to it from sources outside India for the purposes as
specified.
Receipt of interest from industrial undertaking in India in respect of moneys lent to it 10 (15)(iv)(f)
in foreign currency from sources outside India.
Receipt of interest from scheduled bank in respect of deposits made in foreign 10(15) (iv)(fa)
currency subject to same being duly approved by the RBI.
Receipt of interest from public company having been formed and registered in India 10 (15)(iv)(g)
to provide long-term finances for construction/purchase of houses in respect of
moneys lent to it in foreign currency from sources outside India.
Receipt of interest from public sector company in respect of bonds and debentures 10 (15)(iv)(h)
as notified.
Receipt of interest from Government in respect of deposits made in its specified 10 (15)(iv)(i)
schemes from funds due on retirement.
Receipt of interest on securities held by Welfare Commissioner, Bhopal Gas Victims 10 (15)(v)
as also on deposits made with RBI or Public Bank from 1-4-1994 for the benefit of
such victims.
Receipt of payment from an Indian company carrying on business of operation of 10(15A)

aircraft, to acquire an aircraft or aircraft engine excluding spares etc., on lease from
foreign Govt. or enterprise under an agreement entered into before 1-4-1997 and
being duly approved.
Scholarships granted to meet the cost of education 10(16)
Daily allowances received by MPs, MLAs and MLCs. 10(17)(ii)
Receipt of allowances by MPs under the Member of Parliament [Constituency 10(17)(ii)

Allowance] Rules, 1986.
Receipt of allowances by MLAs under the limit of Rs. 2,000/- per month 10(17)(iii)
Receipt of any amount in connection with an award, including award in kind, for 10(17A)(i)
literary, scientific or artistic work etc. instituted by Government etc.
Receipt of amount in connection with a reward including award in kind from 10 (17A)(ii)
Government in respect of public interest purposes.
Receipt of ex-gratia payments from Government to ex-rulers in respect of abolition 10(18A)

of their privy purses.
Amount calculated as annual value being the notional value in respect of any one 10(19A)
palace to be treated for the purpose as residence by ex-ruler.
Income of a local authority as specified. 10(20)
Income of a development or housing improvement authority in a city and/or village. 10(20A)
Income of approved scientific and research association. 10(21)
Income of a university or other educational institution. 10(22)
Income of a hospital or other such institution working exclusively for philanthropic 10(22A)
purposes and not for profit.
Income of news agency having been set up in India for the sole purpose of 10(22B)

collection & distribution of news provided its income in any way is not distributed to
its members.
Income of associations for promotion of sports, etc. as specified. 10(23)
Any income of associations or institutions for controlling professions of law, 10(23A)

medicine, engineering, accountancy, architecture, etc., except incomes derived
from house property or for rendering any specified services or interest on/dividends
from its investments.
Income of regiment Fund or Nonpublic fund of armed forces established for welfare 10(23AA)
of past and present members
Income of a fund established for welfare of employees or their dependents, the 10 (23AAA)
employees being members thereof subject to fulfillment of conditions as to approval
and otherwise.
Income of fund set up by LIC from 1-4-1996 in respect of pension scheme subject 10 (23AAB)
to conditions as specified.
Income of a charitable trust or registered society, etc. working exclusively for 10(23B)
development of khadi & village industries and not for profit as per conditions
specified.
Income of Khadi & Village Board, etc.. 10(23BB)
Income received by a statutory public religious or charitable trust or endowment. 10 (23BBA)
Income of European Economic Community derived in India in the shape of interest, 10 (23BBB)
dividends or capital gains arising out of investments from its funds under such
schemes as notified.
Any income of SAARC Fund having been established under Colombo Declaration 10 (23BBC)
dt. 21-12-91 by Heads of State or Government of member countries for the
purposes of development of regional projects.
Income on behalf of Prime Minister's National Relief Fund. 10 (23C)(i)
Income on behalf of Prime Minister's Fund (Promotion of Folk Art.) 10 (23C)(ii)
Income on behalf of Prime Minister's Aid to Students Fund. 10 (23C)(iii)
Income of National Foundation for Communal Harmony. 10 (23C) (iii)(a)
Income of any fund or institution established for charitable cause. 10 (23c)(iv)
Income of any trust or institution established wholly for public religious and/or 10 (23c)(v)
charitable purposes subject to specified conditions.
Income of specified Mutual Funds registered and/or set up under /by SEBI Act, 10(23D)
1992; public-sector bank/financial institution or RBI fulfilling such conditions as
specified.
Income of Exchange Risk Administration Fund having been set up by public 10(23E)
financial institutions either jointly or separately as per specified conditions.
Income in the shape of dividends or long-term capital gains derived by a venture 10(23F)
capital fund/company from its investments in the equity of a venture capital
undertaking
Income in the shape of dividends, interest or long-term capital gains derived by a 10(23G)

infrastructure capital fund/company from its investments in the equity or long-term

finance of any infrastructure facility oriented enterprise fulfilling such conditions as
specified.
Income of registered trade-union relating to "income from house property" and 10(24)
"income from other sources" as specified.
income received by trustees of Provident, Superannuation & Gratuity Funds relating 10(25)
to interest on securities and capital gains resulting from sale or exchange of such
securities as specified.
Income of Employees State Insurance Fund as specified. 10(25A)
Income of member of Scheduled tribes as specified. 10(26)
Income accruing to any person from any source of income in the district of Ladakh 10(26A)
or outside India subject to the person being resident in the said district in the
relevant previous year and satisfying other conditions as specified.
Income from winnings from lottery, agreement for draw in respect of which having 10(26AA)
been entered into upto 28-2-89 between Sikkim Govt. and organising agents of
such lottery subject to fulfilling of such condition as specified. {to be omitted from 1-
4-1998}
income of any statutory corporation formed for promoting the interests of Scheduled 10(26B)
Castes or Scheduled tribes, etc., as specified.
Income of any statutory corporation formed for promoting the interests of the 10(26BB)
members of any minority community.
income of any cooperative society formed for promoting the interests of members of 10(27)
Scheduled Caste & Tribes.
Any amount adjusted or paid relating to Tax Credit Certificates. {To be omitted from 10(28)
1-4-1998}
Income of an authority from letting of godowns/warehouses for storage, processing 10(29)

or facilitating marketing of goods as specified.
Receipt by way of subsidy received from Tea Board as specified. 10(30)
Receipt by way of subsidy received from the concerned Board by an assessee 10(31)
growing or manufacturing rubber, coffee, cardamom and other notified
commodities.
Income relating to minor child if clubbed u/s 64(1A) in the hands of the assessee 10(32)
not exceeding Rs.1,500 in respect of each minor chid.
Any income by way of dividends (whether interim or otherwise) declared, distributed 10(33)
or paid by a Domestic Company on or after 1-6-1997 as referred to in section 115-
O.
Any profits and gains of newly established industrial undertakings in free trade 10A
zones, electronic hardware/software technology parks for any five consecutive
assessment years within a block of eight years from the assessment year
corresponding to previous year in which production started subject to fulfilling all the
conditions as specified.
Any profits and gains of newly established 100% export-oriented units for any five 10B
consecutive assessment year within a block of eight years from the assessment

year corresponding to previous year in which production started subject to fulfilling

all the conditions as specified.
Income of any person from the property held under trust wholly or in part for 11
charitable or religious purposes as specified in detail and subject to the provisions
of sections 60 to 63.
Receipt of any voluntary contributions by a trust/institution created/ established 12

wholly for charitable or religious purposes excluding the contributions made to it
with specific direction to form part of corpus: Such voluntary contributions be
deemed to be income from property in terms of section 11.
Income of political party chargeable as income from house property or other 13A
sources or by way of voluntary contributions received by it from any person subject
to conditions as specified.
Income Tax Saving Schemes

• National Savings Certificates (NSC)
• Public Provident Fund (PPF)
• Kisan Vikas Patra (KVP)
• Post Office Scheme (POS)
• Special Schemes For Retiring Person
• Postal Life Insurance
• Dividend
National Savings Certificates (NSC)
National Saving Schemes (NSC) is one of the popular Income Tax Saving schemes which is available throughout the year. It
can be operated by single, joint, or minor with his/her parent or guardian. There is a return on this scheme at interest rate of
8%. The minimum investment limitaion of the scheme is Rs.100/- and with no upper limit. Other investments can be done in
multiple of Rs. 100/-. This scheme has a mturity period of 6 years. It is transferable and also there is a provision of loan on the
basis of this scheme. Under section 88 of the Income Tax Act, 1961 any person can take benefit in income tax on amount
invested in this scheme and under section 80L of Income Tax Act, 1961 there is a provision of benefit on interests coming from
scheme.
Public Provident Fund (PPF)
Under this scheme, there is a return at the interest rate of 8% p.a. The minimum investment limit is Rs. 500/- and maximum
limitation is Rs. 70,000/-. It can be opened any time throughout the year. It can be operated either single or jointly. In case of
minor, with parent/guardian. There is also a facility of nomination in this scheme. This scheme has a maturity period of 15
years. The first loan can be taken in the third financial year from the date of opening of the account, or upto 25% of the amount
at credit at the end of the first financial year. Loan amount can be returned in maximum of 36 installments. A person can
withdraw an amount (not more than 50% of the balance) every year. Under Section 88 of Income Tax Act, 1961 there is a
provison of tax benefit by investing in this scheme. Interest on this schme is tax free.
Kisan Vikas Patra (KVP)
Money invested in this scheme doubles in 8 years. There is a minimum investment limitation of Rs.100/- with no upper limit.
This scheme is available throughout the year. It can be operated either single or jointly. In case of minor, with perent/ guardian.
Facility for nomination is also available under this scheme. Currently there is no tax benefit on investment under this scheme.

Post Office Scheme (POS)
It is one of the best Income Tax Saving Scheme. It can be operated by either single or jointly. In case of minor, with parent/
guardian. It is available throughout the year. There are several types of post office schemes depending upon the type of
investment and maturity period. Post office schemes can be dividen into following catagories:
• Monthly Deposit
• Saving Deposit
• Time Deposit
• Recurring Deposit
Special Schemes For Retiring Person
Government Employees : There is a return at the rate of 8% per annum. The minimum investment is Rs.1000/- and maximum,
amount equal to the total retirement benefit. Maturity period of this scheme is 3 years. According to Income Tax Act, 1961
interest on this scheme is tax free.
Public Sector Employees: Under this scheme there is a return of 9.5% payable half-yearly on 30th June and 31st December
respectively. There is a minimum investment limitation of Rs.1000/- and the maximum limitaion is the amount equal to total
retirement benefit. It can be operated by retired PSU employees in his/her own name or with the spouse, jointly. In this
scheme, there is a facility of premature encashment. Entire balance or part thereof can be withdrawn after the expiry of three
years from the date of deposit. Maturity period of this scheme is 3 years. According to Income Tax Act, 1961 interest on this
scheme is tax free.
Postal Life Insurance For
This scheme is in operation for the last 117 years. This scheme started in 1884 as a welfare measure for the employees of
Postoffices & Telegraphs Department under Government of India to the Secretary of State (having dispatch No. 299 dated 18-
10-1882). But after few years, various departments of Central and State Governments were extended its benefits. Now it is
open for employees of all departments of Central as well as State Government, Nationalized Banks, Public Sector
Undertakings, Financial Institutions, Local Bodies like Municipalities and Zila Parisads, Educational Institutions aided by the
Government. According to Income Tax Act there is also a provision of special relaxation in income tax on the basis of
investment done in urban or rural areas.
Dividend
According to Income Tax Act,1961 there is a provision benefit in Income Tax if assessee has an income as a dividend on
investment in any of the following:
• Shares
• Mutual Funds
• Unit of UTI
This dividend can be given by any company or coperative society.
Permanent Account Number (PAN)
Permanent Account Number (PAN) is a number which is used by Income Tax Department as an identification of a person.
Through this number income tax department can get every information about the assesses.
It is a 10 digit alphanumeric number which is printed on a laminated card, known as PAN card along with other details like
PAN number, name of applicant, father's name, date of birth and passport size photo.
(PAN number is taking place of General Index Registrar (GIR) Number. GIR number is given by an assessing officer to
assessee which also contain details of assessing officer.)
Under section 139A of Income Tax Act, 1961, PAN number is required for following persons:
• Whose total annual income is more than the amount which is not chargeable under income tax act
• Whose income through business or other profession is more than Rs. 5 lakhs
• Who is filling income tax return
PAN is necessary in case of following transactions :-
• Filing income tax return

• Any correspondence with income tax department
• Submitting challans for payment of any tax to the department
• At the time of verifications of identity of assessee in income tax department
PAN Application Form

PAN number is an important part of Income Tax Return filing. Acording to the Income Tax Act, 1961 every person must have a
PAN for filing an Income Tax Return. Under section 139A of Income Tax Act, 1961, PAN number is required for the following
persons:-
• Whose total annual income is more than the amount which is not chargeable under income tax act
• Whose income through business or other profession is more than Rs. 5 lakhs
• Who is filling income tax return
The application form requesting for the allotment of of PAN (PAN Card) is given in the undermentioned link. Download it
New PanCard
Application Form
Income Tax Complaint
There is a provision of Income Tax Complaint in Income Tax Act, 1961. According to the act, one can file a complain against
any person who is not fulfilling the Income Tax Act to his assessing officer or other officer incharge like CIT or CCIT or DGIT
(investigation), responsible for its further processing. The person who is filing the complain can also submit proof/ evidence for
his/her own interest. On the basis of his/her complaint, if the IT department collects more tax from such person, then he/she
will be rewarded monetarily from the department.


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INDIAN INCOME TAX CALCULATOR

Automatic TAX Calculator

Indian Budget 2006-07 on Income Tax

• No changes in the rates of personal income tax or corporate income tax.

Income Tax Introduction

Prepared By: All Developers

Income Tax Calculator

Prepared By: All Developers

Income Tax Department

Central Board of Direct Taxes (CBDT)

IIncome Tax Offices

Heads of Income: Salary

What Income Comes Under Head of Salary:

Prepared By: All Developers

What is Leave Encashment:

Under Income Tax Act following types of allowance are defined

House Rent Allowance:

• Actual house rent paid by that individual

In case of Government employee entitled to minimum deduction of

• Entertainment allowance received

In case of other employee entitled to minimum deduction of

• (a) Entertainment allowance received

Other Special Allowances

• Children Education Allowance

Allowances for there is a provision of exempt in income tax are:

There are following perquisites which are tax free:

Prepared By: All Developers

Heads of Income: House Property

What Income Comes Under Head of House Property:

How to calculate annual value of property:

According to annual value, house property is calculated as

Heads of Income: Profit in Business/ Profession

• There must be a business/ profession

What Income Comes Under Head of Profit in Business:

Heads of Income: Capital Gains

What is Capital Asset:

• Goodwill of business generated by assessee

Assets Which Don't Come Under Heads of Capital Assets

Prepared By: All Developers

• Sale, exchange and relinquishment of assets

Heads of Income: Other Sources

• Income coming as a dividend paid by a company to an assessee

Income Tax Return

What Is Income Tax Return

Income Tax Return Form

Income Tax Return Filing

Income Tax Return

1. Owner of a Motor vehicle

Income Tax Return Forms

Forms Used In Filling of Income Tax Return Are As Given Below:

Form No. Assessee Type

2C For those who ambit of one out of six scheme

3A For assessees including companies claming exemption under section 11

• Sale and purchase of vehicle

• Sale & purchase of property worth Rs. 5,00,000/- or more

• Payment of hotel/restaurants bills more than Rs. 25,000/- at a time

Case III - Firm

Case IV - Local Authority

• By its authorized head officer