SUBJECT: DIRECT TAX

Topic:
TOPIC:Basic
BASICConcepts and AND
CONCEPTS
Exemptions
INCOME FROM Under Section 10
HOUSE
PROPERTY.

Presented By : SLE Group 11

HR COLLEGE OF COMMERCE AND
ECONOMICS.
 INTRODUCTION
Taxes are considered to be cost of living in a society. They are levied by the governments
to meet the common welfare expenditure of the society.

There are two types of taxes:-

TAX

DIRECT INDIRECT
TAX ON UNDISCLOSED
INCOME GST CUSTOMS DUTY
FOREIGN INCOME AND
TAX ASSETS
 OVERVIEW OF INCOME TAX LAW IN INDIA

Seventh Schedule to Article 246 INCOME TAX ACT

contains three lists which enumerate 1961
the matters under which the
parliament and the state legislatures ANNUAL FINANCE
have the authority to make laws for ACT
the purpose of levy of taxes.
COMPONENTS INCOME TAX
1 UNION
RULES
. LIST

2. STATE LIST CIRCULARS/

NOTIFICATIONS

3. CONCURRENT
LIST LEGAL DECISIONS
OF COURTS
TOTAL INCOME AND TAX LEVY OF INCOME TAX ACT
PAYABLE THE FOLLOWING ARE THE STEPS TO COMPUTE TOTAL INCOME OF
A PERSON

DETERMINATION OF CLASSIFICATION OF
1 2. INCOME
RESIDENTIAL STATUS
.
 3.
SET-OFF/CARRY
3. COMPUTATION 5.
FORWARD
Set off and carry forward of
Compute the income from losses refer to the process of
each source under the five adjusting losses from one source
heads of income of income against profits from
another source of income.

COMPUTATION OF GROSS
4. CLUBBING 6.
TOTAL INCOME
Clubbing of income refers
to the inprocess of Compute the gross total income
combining the income of by adding up the income from
other individuals with the all sources
income of the taxpayer.
 DEDUCTIONS FROM GROSS TOTAL 8. TOTAL INCOME
7. INCOME

9. APPLICATION OF RATES

10 SURCHARGE/REBATE
.

11. HEALTH & EDUCATION CESS

ADVANCE TAX & TAX

12 DEDUCTED AT SOURCE
.
TAX PAYABLE/TAX
13.
REFUNDABLE
 IMPORTANT TERMS
Example*
• ASSESSEE
An assessee is a person or Suppose Mr. Kumar earns an
entity that is liable to pay income of ₹500,000 in the
taxes under the Income-tax financial year 2022-23 (PY).
Act, 1961
This income will be assessed
for tax purposes in the
• ASSESSMENT
Assessment Year 2023-24 (AY).
Assessment is the process
of determining the tax Assessment Year
liability of an assessee. 2023-2024
Previous Year
2022-2023
 Tax exemption Agricultural income

 Agriculture is said to be the primary occupation in India.

It is usually the only source of income for the large rural population in India

 The government has numerous amount of schemes, policies and other measures
. to promote growth in this sector – one of them being an exemption from income tax.

 Examples of Agricultural Income

 Income from the sale of seeds.
 Income from the sale of replanted trees.
 Tax exemption on income made as member of HUF

 This section states that any income or profit made from businesses or investments as a member of a Hindu
Undivided Family (HUF), will be tax-exempt in the hands of any member or shareholder in the family. As
per this clause, income for a member of a HUF will only be eligible for tax exemption in the following
situations:

 Where the income or the profit share has been paid to the member from the total income made by the
family
 No Tax on Profit Share Made as a Co-Owner of a Partnership Firm

➢ Section 10(2A) offers tax exemptions on profit shares received

by each member as co-owners of a partnership firm.
However, the following conditions must be satisfied to be
eligible for this tax exemption:

➢ The partnership firm must be taxed as per the provisions of

Income Tax Act, 1961

➢ Each shareholder must receive profit shares in the same

proportion as mentioned in the partnership deed
Income From Eligible Awards Due to Outstanding Contribution to Literature,
Science, Arts, or Sports

 Section 10 (3) offers full tax exemption to monetary awards and grants received from the Central
Government or State Governments for outstanding contributions to literary, arts, scientific, and
sports fields.
 Section 10(4): Tax Exemption on Income Made by an NRI From India

This section pertains to the income made by a non-resident Indian (NRI) from their investments or savings accounts in India. They
can claim full tax exemption for income from the following:

 From interest income from rupee-denominated bonds and securities specified by the Government of India

 From premiums or income earned from redemption of such securities or bonds

 From interest income on deposits made in a non-resident (external) savings account i.e. an NRE account as per Section 2 of
Foreign Exchange Management Act (FEMA), 1999.
 Exemption on Payouts From a Life Insurance Policy

 The maturity amount i.e. the sum insured, death benefit received and bonus payouts, if any,
from a life insurance policy are fully tax-exempt under Section 10(10D) of I-T Act, 1961.
However, in order to claim tax exemptions under this section, a policyholder must satisfy the
following conditions:

 On life insurance policies issued after 1st April, 2012, the premium paid shouldn’t exceed
10% of the sum insured

 On life insurance policies issued before 1st April, 2012, the premium shouldn’t exceed 20% of
the sum insured
 Tax exempted from recognized provident fund in lumpsum.

 There are various types of provident fund (PF) accounts

that individuals use for savings. Also, the income tax rules
for PF contribution, withdrawal and income on PF vary
depending on the type of PF account.

 Contribution/Employee’s contribution - This is the amount

contributed by you to your EPF. This portion of your
withdrawal is not taxable.
THANK YOU
Presented by –
1) KOMAL JHURANI (HFBAF101)
2) ANISH JIANDANI (HFBAF102)
3) TRUSHTI JITYA (HFBAF103)
4) ISHA JODHAWAT (HFBAF104)
5) RASHI JOSHI (HFBAF105)
6) ARYAN KADAM (HFBAF106)
7) MANSI KALRA (HFBAF107)
8) RUDRA KANIYA (HFBAF108)
9) DHEER KARARA (HFBAF109)
10) SIYA KARIA (HFBAF110)