FOR JAN 2025 EXAMS

CHART BOOK
FOR INCOME
TAX
Graphical and tabular presentation of tax concepts for
strong revision

RAJAT MOGHA TAX CLASSES

HELPLINE +91 96906 91957
This chartbook is prepared with utmost simplicity, straight forward
and student friendly language. This book will serve as a strong study
tool in your exam preparation.
 RAJAT MOGHA TAX CLASSES

Chart book index

This chartbook is prepared with utmost

simplicity, straight forward and student
friendly language. This book will serve as a
strong study tool in your exam preparation.

1 2
Introduction Heads of income
Salary.................... 4
Basic concepts.......... 1
House property....... 8
New tax scheme...... 2
PGBP...................... 9
Residential status.....3
Capital gains......... 14
IFOS...................... 20

3 4
Clubbing & Setoff Deductions
Clubbing of income.......... 22 Sec 80C to 80 U.......... 24
Setoff of losses................ 23

5 6
TDS, TCS & Advance tax Return of income
TDS.............................. 27 ROI..................... 33
TCS.............................. 31
Advance tax................. 32

CA RAJAT MOGHA - EXCLUSIVE FACULTY FOR TAXATION

www.rajatmogha.com
 CA Rajat Mogha Income tax - Chartbook

Basic concepts
Individual/HUF/AOP/BOI/artificial juridical person

·
-

Optional Tax regime

Income Tax rate Rebate under section 87A
0 to Rs. 250,000 Nil
Only for resident individual having income up to Rs.5 lacs
Rs. 250,001 to 5 lacs 5%
Amount of rebate
-

Rs.500,001 to 10 lacs 20%

-Rs.12,500
-

More than Rs.10lacs 30%

-Tax on income
Whichever is lower
In case the individual is resident and of the age 60 years or
more then exemption limit is Rs.3,00,00 and of age 80 years or
more exemption limit is Rs.5,00,000

Rate of surcharge Rate of Surcharge on dividend/

Particulars surcharge 112/111A/112A
↑
Total income is more than Rs.50 lacs but upto Rs. 1 cr 10% 10%
-
If total income is more than Rs. 1 cr but upto Rs.2 cr 15% 15%
,
If total income (excluding dividend/112/111A/112A) is more than Rs.2 cr but up to Rs.5 cr) 25% 15%
-
If total income (excluding dividend/112/111A/112A) is more than Rs.5 cr 37% 15%

For partnership firm including LLP and local authority

\
\
@°
°@}@ <\@
Flat tax rate of 30%
%

-
Surcharge rates If total income is more than Rs. 1 cr - 12%

Tax rates
⑦
⑦
°
\
*
°
@ @°@and
@
@ surcharge for
@ domestic companies
} *
Surcharge
- rates
Flat tax rate – 30% (if turnover in PY 2021-22 is up to Rs.400
If total income is more than
7%
-

crores then 25%)

Rs. 1 crore but up to Rs.10 cr
If total income is more
12%
-

than Rs.10 cr
°
@
⑦
;
↑
# for some domestic
Special tax rate@
⑩
=
° > opting –
companies,\
Section Tax rate Surcharge rate irrespective of income
-
115BBA 22% 10%
-
115BAB 15% 10%

Foreign companies

·
Surcharge rates
Flat tax rate – 40% I If total income is more than
Rs. 1 crore but up to Rs.10 cr 2%
If total income is more 5%
than Rs.10 cr

Cases where income of the previous year will

be assessed in that previous year itself
-
Non-resident shipping business
-
Person leaving India
/
AOP/BOI/artificial juridical person formed for a particular event or purpose
Person likely to transfer property to avoid taxes
Discontinued business

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 1

 CA Rajat Mogha Income tax - Chartbook

Default tax regime for Ind/HUF/AOP/BOI/AJP – Section 115BAC

-
<
~
@
°
⑫ @
Now it is a default method to pay tax (only for normal income)
Please note – special income is taxable at special rates only. LTCG – 20% /111A–15% /112A–10%/casual income – 30%

Income Alternative rate of tax Change of Regime

-
Up to Rs. 3 lakhs Nil Non PGBP - Can
Rs.3 lakhs for Rs.6 lakhs 5%
change every year
/

-
Rs.6 lakhs to Rs.9 lakhs 10% DEFAULT TAX
-
Rs.9 lakhs to Rs.12 lakhs 15% System PGBP - Cannot
Rs.12 lakhs Rs.15 lakhs 20%
change once default
I

I
More than Rs.15 lakhs 30%
adopted
Under default tax regime, tax rate will be same and assessee age is not relevant.

Under
Rebate under section 87A under default regime d
regim efault tax
e,
Only for resident individual having income up to Rs. 7 lacs availa rebate is a
ble, if lso
incom t
Amount of rebate e exce he
margi e
-Rs.25,000 nally ds
-Tax on income lacs. by ₹7
Whichever is lower

Rate of surcharge under default regime Rate of Surcharge on dividend/

Particulars surcharge 111A/112A/112
Total income is more than Rs.50 lacs but upto Rs. 1 cr 10% 10%

-
-
If total income is more than Rs. 1 cr but upto Rs.2 cr 15% 15%
,
If total income (excluding dividend/112/111A/112A) is more than Rs.2 cr 25% 15%

Deduction is not allowed while computing tax as per the new scheme
& Leave travel concession
House rent allowance
Other official and personal allowances
Only the following allowances shall be allowed
Transport allowance for physically handicapped (Rs.3200)
Conveyance allowance and travelling allowance for official purpose
Daily allowance provided to the employee to meet his routine expenses while he is away from his normal place of duty.
Daily allowance or constituency allowance of MPs and MLAs
Exemption in respect of income of minor child included in the income of parent (Rs.1500 per child)
Section 10AA exemption of SEZ
Section 16 deduction under salary (entertainment allowance & tax on employment). Please note standard deduction is available.
Section 24(b) interest on loan in respect of self occupied property (Rs.2,00,000)
Additional depreciation
Section 35 Contribution for scientific research – outside
Section 35AD specified business deduction
Section 35CCC Expenditure incurred on notified agriculture extension projects
Deduction under chapter VI-A (Section 80C to 80U)
Only the following deductions are allowed
Section 80CCD(2), 80CCH(2) and 80JJAA

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 2

 CA Rajat Mogha Income tax - Chartbook

Residential status & scope of total income

·
Residential status of individual Special provisions
PY stay 182 days or more in India Indian citizen or PIO, being outside India comes to
Basic conditions

visit India and total income exceeds ₹15 lacs

0R (excluding foreign sources income).
PY stay 60 days or more in India +
PY stay 182 days or more in India

Basic conditions
preceding 4 years stay atleast 365 days
0R
182 days or more in these 3 cases PY stay 120 days or more in India +
I Indian citizen Indian citizen Indian citizen or PIO who stays preceding 4 years stay atleast 365 days
leaving India for being crew abroad but comes to visit India &
employment member of total income other than foreign Ordinary resident Non ordinary resident
Stay during PY is 120
outside Indian ship sources is upto ₹15 lacs. Stay during PY is
days or more but less
To sum up 182 days or more
than 182 days.
Individual becomes resident if ANY of the basic condition is
satisfied. But in above 3 cases only 182 days condition will apply.
Indian citizen whose total income exceeds
Additional conditions to check ₹15 lacs (excluding foreign sources income*)
& not liable to tax in any country or territory-
ordinary or non ordinary Always deemed as not ordinary resident.

Stay in India in last 7 Must be resident in 2 out

-

years (preceding the PY) +of 10 years(preceding

*Income from foreign sources
is 730 days or more. the PY).
Means income which accrues or arise outside
If both the above are satisfied - ordinary resident else India but it does not include income from
non ordinary resident business or profession which is controlled
from India

Residential status of HUF

If control& management is 100% outside India Residential status of firm /AOP/ BOI
then non resident otherwise resident. If control& management is 100% outside India then
To determine ROR or RNOR - apply additional non resident otherwise resident.
conditions on Karta.
Residential status of company Scope of total income
The following companies are resident during PY
Indian companies
ROR RNOR NR
Income arise or deemed Yes Yes Yes
Foreign companies where POEM is in India to arise in India

Income received or Yes Yes Yes

Interest, Royalty, FTS income of Non-resident deemed to be received in
Taxable in the following cases if received India

from: Income neither arise nor Yes Yes No

If controlled from India
GOI received in India
No
Resident, used in any source in India If not controlled from India

NR, used in business in India

·

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 3

 CA Rajat Mogha Income tax - Chartbook

Income under the head salary

Section 15 to 17
Section15 Charging section 1

:
Salary
Employee and employer relationship Allowances 2
Due or receive whichever is earlier Perquisites
Advance received or arrears received will Retirement benefits
be taxable in the year when received - but
not be taxable again Profits in lieu of salary

Allowances 4
Official Personal 3 House rent allowance
Least of the following - HRA full
allowances allowances Actual HRA taxable
y
under
default re
Rent paid - 10% of RBS salary gime
- exempt - taxable 40% RBS (50% in case of DMKC)
RBS= BS + DA(forming part) + Fixed % commission on turnover
Eg. Travelling, Eg. Cash,
conveyance, daily, lunch, medical, 1
Children education allowance
research, uniform, overtime, etc.
etc.
Rs. 100 pm each - Max 2 children
Under optional
Some personal allowances
are exempt only in optional
-
Hostel allowance regime only

regime Rs. 300 pm each - Max 2 children

House rent Children Hostel Transport

I
Transport allowance In both the regimes
allowance education allowance allowance Only for blind, deaf, dumb
allowance
or orthopedically Rs. 3,200 p.m.
handicapped

Deduction under section 16

In both the regimes
Forgoing of salary
Standard deduction - Max Rs.50,000 5 Taxable in the hands of employee 6 M
Entertainment allowance Actual
Least of the following
entertainment allowance
Only for government employees Under
20% of basic salary
Rs. 5,000
optional
regime
Surrender of salary
Tax on employment - cash basis only Not taxable

Profit in lieu of salary 7

Compensation received - Termination or modification of employment contract
Amount received on key-man insurance policy
Lump-sum payment- Before joining or after cessation of job

www.rajatmogha.com Income tax - Chartbook Page 4

 CA Rajat Mogha Income tax - Chartbook

·
Rent free or Common points - accommodation.
concessional accommodation Any amount recovered
from employee shall be
Hotel Accommodation perquisite
Actual hotel charges, or
24% of RFA salary, for all employees
deducted from perq. value
· including government employee
Government Employee Non govt. employees Non govt. employees Value of furniture = 10% (upto 15 days on transfer is exempt)
Central or state House owned by employer House hired by employer p.a. of actual cost or hire
charges as the case may be Accommodation to high/supreme
government employee Population Perq. value Value of perq. court judges - exempt
Upto 15 lacs 5% of RFA salary Actual hire charges
Licence fees More than 15 upto 40 lacs 7.5% of RFA salary 10% of RFA salary RFA salary = BS+ DA(forming part)+all taxable allowances+bonus+commission,
as per govt. rules More than 40 lacs 10% of RFA salary Whichever is lower etc. It does not include perquisites.
Salary from all employers to be considered.

If same accommodation is continued for more than 1 year, then the value of perquisite is restricted
to CII.
Maximum RFA = CII of the PY x RFA perquisite value of first year
CII of the first PY
-
Accommodation provided at two places - first 90 days, one taxable (Lower)

Car provided by employer

100% personal use Partly personal & official
10% p.a. of actual Expenses by Expenses by
Motor cost or hire charges Employer Employee
Upto 1.6 lt. cc
Car + all expenses met Rs. 1,800 p.m. Rs. 600 p.m.

by employer like More than 1.6 lt. cc Rs. 2,400 p.m. Rs. 900 p.m.
facility driver, fuel, Note:
maintenance, etc. Rs.900 p.m. is increased for driver
less: Any amt Part of the month- ignore
recovered from I
More than 1 car provided for partly use
Consider only 1 as partly used and all other as
employee 100% Personal

Car owned by employee

100% Personal

: ded
All expenses met by employer - any amount recovered
r o v i
from employee
Car p 00%
Partly used for 1 al
Expenses met by employer minus 1800pm/2400pm offici not
o s e is
(also deduct 900 pm for driver) p
pur quisite
Note Higher amount can be deducted if a per
specified documents are maintained.

www.rajatmogha.com Income tax - Chartbook Page 5

 CA Rajat Mogha Income tax - Chartbook

Domestic servant Sweat equity shares

Amount paid by employer FMV of the shares when the option is
less any amount recovered exercised(-) amt paid by employee
Taxable in the year of allotment, but exemption is Eligible start ups

Gas, electricity, water, etc. Interest free or concessional loan

- Loan upto Rs. 20,000 is exempt
Purchase cost or production cost of employer
Loan for medical treatment of specified disease is exempt

!
less any amount recovered
In other cases, use SBI interest rate to compute. Interest
on monthly balance as reduced by interest paid by
Education facility employee.
Expenditure incurred by employed
(-) amount recovered Food or refreshment facility
Under optional regime only
Exempt for children, if perquisite Meals - exempt upto Rs. 50 per meal
value is upto Rs.1000 pm by reason Refreshments fully exempt
of employment. - Meals provided in remote areas also exempt
If institute is owned by employer
cost of similar institution
Gifts from employer
Use of movable assets Cash gifts - fully taxable
Use of laptops & computer Nil perquisite
Gifts in kind - exempt if value upto Rs.5,000
Other movable assets Employer owned - 10%
Under optional regime only
pa. of actual cost Leave travel concession
2 LTCs can be availed in a block of 4 years
Employer hired - Mode of travel
Economy class airfare Only 1 LTC can be carried forward to next
actual hire charges By air
block, to be availed in first year
By other mode
Less: amount paid by employee Rail available First class rail fare
~
Max. 2 children - born after 1-10-1998
No rail - other recognised transport Deluxe fare of such mode

Transfer of movable assets No rail- no recognised transport Equivalent first class rail fare

Original cost (-) depreciation for completed years (-) Medical facilities
amount paid by employee Treatment in India Treatment outside India
For other than family
Computers, mobiles, storage devices WDV @50% Govt. hospital Treatment & stay expenses upto RBI members fully taxable.
limit Family - self, spouse,
Cars WDV @20% Employer hospital children, dependent

Specified disease in Travelling expenses exempt if

& parents and dependent
siblings
Other assets SLM @10% approved hospital GTI upto Rs. 2 lacs

Fully exempt perquisites

I
Telephone and computer facility
I
Accommodation to HC or SC judges (optional scheme) Health insurance premium
Foreign perquisites & allowances Recreational facilities for employees
by GOI to Indian citizen Accommodation provided at remote area at
Transport facility between home & office mining site or onshore oil exploration site
Education facility to employee

www.rajatmogha.com Income tax - Chartbook CA|CMA|CS Page 6

CA Rajat Mogha Income tax - Chartbook

Gratuity Retirement benefits

CG/SG/Local authority employees Fully exempt
Non government employees
Covered under gratuity act Not covered under gratuity act
Least of the following will be exempt Least of the following will be exempt
Actual gratuity Actual gratuity

:
Rs.20lacs Rs.20lacs
15/26 x last drawn salary x completed
·
1/2 x Avg. salary of 10 months x only completed
years of services (rounded off) years of services

Salary= BS + DA(forming part)

Salary= BS + DA
+ Fixed % commission on turnover
Note:
Gratuity received during tenure - Fully taxable for all employees including government employees.
Gratuity received again from any other employer- Reduce the limit of Rs. 20 lac from earlier exemption.

Provident fund Interest on

Pension
employer
Employer contribution
Commuted contribution
Statutory provident fund Fully exempt Fully exempt
Government Non government employee
Recognised provident fund Exempt upto 12% of salary Exempt upto 9.5%
employee No gratuity With gratuity
Maximum exemption Rs. 7.5 lacs interest rate
Fully exempt 1/2 x (commuted 1/3 x (commuted
Unrecognised provident fund Taxable only in the year when Taxable only in the year when
pension/ % of pension/ % of
commutation) such amount is actually such amount is actually
commutation)
received received
Note: Uncommuted pension is fully taxable for all employees If employee contribution to SPF/RPF is more than ₹2.5 lac, then
interest on such excess contribution is taxable under IFOS

Leave salary
Other employee
Least of the following
Central and state govt employee
Fully exempt Voluntary retirement
Actual leave encashment Least of the following will be exempt
Rs. 25 lacs Leave salary
received during Actual amount received on VRS
10 x average salary
Rs. 5 lacs
Leaves at credit x Average salary service is fully 3 x salary x completed years of service
Max leaves granted = 30 taxable Last drawn salary x remaining months of service left
Salary= BS +DA(forming part) + Fixed % commission on turnover
Average of last 10 months immediately before the date of retirement
Salary= BS+ DA( forming part) + fixed % commission on turnover
Retrenchment compensation
Section 17(2) (vii) Least of the following will be exempt
Employer contribution in excess of Rs. 7.5 lacs Actual compensation received
Rs. 5 lacs
Recognised provident fund 15/26 x Average salary x completed years of service or
Approved superannuation fund part thereof in excess of 6 months
New pension scheme Salary= BS + All allowances, commission & perquisites
Bonus & retirement benefits not to be included

Section 17 (2) (viia) TP = (PC/2) x R + (PC1 +TP1) x R

www.rajatmogha.com Income tax - Chartbook Page 7

CA|CMA|CS
CA Rajat Mogha Income tax - Chartbook

Income under the head house property

Sectionw ise summar
1 Section 22 Charging section of HP
·
y Section 22 to 27

Sec 23 Computation of annual value

:
Section 23 Computation of annual value
Section 24 Deductions allowed from annual value 4 Gross annual value - GAV
·
Actual rent received or receivable - ARR
Section25 Deductions not allowed Expected rent or annual letting value Higher
Section 25A Recovery of unrealised rent
or arrears of rent *Expected rent
Section 26 Co-ownership Municipal value

:
Higher
Section 27 Deemed owner Fair rental value
Lower
2 Sec 22 charging section
Standard rent

There must be a building or land appurtenant thereto Note:

Assessee must be the owner(or deemed owner) 1. In case actual rent is lower than expected rent due
Owner should not use it for own business or profession
Computation of House property income to vacancy, then GAV = ARR otherwise GAV will
be expected rent.
-
Gross annual value xx
2. In case of unrealised rent, then reduce unrealised rent
-
Less: Municipal taxes paid by owner xx
from actual rent and then compare with expected rent.
-
Net annual value xxx 3. NAV of maximum 2 self occupied or unoccupied house
Less: deductions u/s 24 can be taken as NIL for individual or HUF assessee.
3 24(a) Statutory deductions xx Interest is allowed on due basis If loan is taken for purchase or
24(b) Interest on borrowing xx :
Loan taken to repay the original construction on or after 1 Apr,

Income from house property xxx -

loan is also allowed.
Pre-construction period interest
1999 and completed within 5
years then take ₹2 lacs.

is also allowed in 5 instalment. There is no limit of interest in

Sec 24 Deductions
-

I Pre-construction period starts from the date of loan case of let out or deemed let
uptil the PY prior to the year of completion of out property.
24(a) Standard 30% of NAV
5
·
24(b) Interest on borrowing
property.
In case self occupied property(s) the maximum

:
interest allowed is ₹2lacs or ₹30,000. Under optional regime only

Sec 25 Deductions not allowed 6

·
Interest, if payable outside India TDS is deducted
then such interest is not Or
allowed, unless - Agent is appointed u/s 163
7 Sec 27 Deemed ownership 19

·::.
Sec 25A Recovery of unrealised rent or arrears of rent Property is transferred to ↑
Holder of an impartible estate
70% of such recovered amount is taxable under House property in spouse or minor child (except Co-op-society member.
the year of recovery. married daughter) without Person in possession of propenty
adequate consideration. Lease hold right of more than 3 years.
Sec 26 Co-ownership 8
·
Co-owned property is self occupied Co-owned property is letout
-

Imp. points 1
10
Composite rent if seperable, then income from building is house property otherwise
Take NAV as Nil for each co- First compute HP income as a IFOS or PGBP.
owners and compute separately. single owner and then divide the Income from building used for agriculture is exempt.
Deduction of interest is also income in the respective ratio of Foreign building income is taxable if received in India or in case of ordinary
separately available. ownership residents
Note: If ownership ratio is not ascertainable then take assessee as AOP Building with different units if used for different purposes are computed separately

www.rajatmogha.com Income tax - Chartbook Page 8

CA|CMA|CS
CA Rajat Mogha Income tax - Chartbook

Profits & gains from business or profession

Sectionwise summary Sec 28 charging section
28 Charging section I
Profits from any business/profession carried during PY
29 Computation - Gifts, perquisites during course of business
30 Buildings expenses I Non competing fees
31 P&M and furniture
Depreciation
I
Sum-received from key man insurance policy
32
33AB Tea coffee rubber CMA & CS
I Inventory converted into capital assets - FMV
Remuneration received by partner from partnership
:
33ABA Site restoration CMA & CS
35ABB Telecom licence CMA & CS firm
35 Scientific research Export assistance
35AD Specified business I Compensation on breach of business contract
35CCA Rural development I
Sum received on transfer of 35AD assets
35AC Eligible projects CMA & CS
35D
35DD
Preliminary expenses
Amalgamation expenses CMA & CS
Sec 29 computation of PGBP xxx
35DDA VRS expenses Net profit as per P/L account
36(1) Other deductions Add: expenses debited but not allowed xx
37(1) General deductions Less: Income credited but covered under other heads/exempt (xx)
38 Proportionate deductions Add: Income not credited to P/L but covered u/s 28 or 41 xx
40(a) Exp not allowed Less: Expenses not debited to P/L but allowed u/s 30 to 37 (xx)
40(b) Partners remuneration
40A(2) Excessive payment PGBP income XXX
40A(3) Cash payment in excess of ₹10,000
40A(7) Provision for unapproved gratuity Sec 30 Expenses of business buildings
41 Deemed business income -
Rent, rates, taxes, repairs & insurance of building
44AA Books of accounts -
It should not be personal building
44AB Tax audit -
If building is used for business & non business purpose
44AD Presumptive business income
Presumptive specified profession
also, allow proportionately
44ADA
44AE Goods carrying vehicles
I
Rates & taxes are allowed only on payment basis- sec 43B
44B
44BBA
Non resident shipping business
Non resident aircraft business
Sec 31 repairs & insurance of P&M and furniture
CMA & CS -
Repairs must be revenue in nature.
<
If P&M or furniture is used for business as well as non business
purpose, allow proportionately

Only use WDV method(exception- power generation)

..
Sec 32 Depreciation

-
WDV of the block at the begn. of the year xxx
-
Depreciation is charged on block of assets and not on individual
Add: Additions during the year xx
assets. I
Less: Money received on sale/disposal (xx)
7 If asset is acquired in the PY but put to use for less than 180 days,
WDV at the end for charging dep XXX
then half depreciation
Dep for the year xx
<
If asset is never put to use - No depreciation. (Except passive use).

Additional depreciation Under optional Half depreciation No depreciation

regime only WDV of
Asset not Entire block is
Acquired Used for block is Nil sold/
Only on new plant & machine put to use
20% of actual cost
·

I
less than or negative transferred
Installation in factory during PY
Not on vehicles
180 days
10% if used for less than 180 days I

Not available, where100%

Power generating unit

and remaining 10% in next year
-

deduction is allowed in 1 year

SLM method to be followed
Option to choose WDV method- in very 1st year
Original cost

PGBP loss
Terminal depreciation
Written Balancing
PGBP inc. u/s 41
charge
Capital gains
u/s 32 down value

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 9

CA|CMA|CS
CA Rajat Mogha Income tax - Chartbook

For CMA & CS students

For CMA & CS students For CMA & CS students
Sec 33 ABA Site restoration fund
Sec 33AB TCR account Sec 35ABB Telecom license Assessee engaged in extraction or
Cost of license to be amortised

!
Assessee engaged in manufacturing production of mineral oil and natural
tea, coffee or rubber. over the life of license. gas
Amount of deduction
Deduction allowed only when Amount of deduction
40% of profits license fees is paid. 20% of profits
Lower

A
Or Lower Sale of license Or
Amount deposited in TCR account Amount deposited in specified account
CMA & CS
Deposit within 6 months from the end PGBP loss allowed
u/s 35ABB
Written PGBP inc.
down value u/s 41
Capital gains
Sec 35ABA Spectrum fess
of PY or due date of ROI, earlier .
Same as 35ABB

Under optional regime only

Sec 35 Scientific research Sec 35AD Specified business
Under optional regime only 100% deduction on capital expenditure
In house research Outside research (except land, goodwill & financial instruments
Must be related to business May or may not relate Date Business
1.4.2007 Cross country pipeline network- gas/petroleum
100% deduction allowed for to business 1.4.2009 Cold chain facility
revenue or capital 100% allowed 1.4.2009
1.4.2010
Warehouse for agricultural produce
2* or above hotel
expenditure(except land) Approved association/ 1.4.2010 Hospital 100 beds or more
institutions/ National lab / IIT 1.4.2010 Housing- slum redevelopment
Before commencement expenses etc. 1.4.2011 Housing- affordable

Last 3
1.4.2011 Fertiliser production
Capital exp -
1.4.2012 Inland container depot or customs freight station
all(except land) For social science/ 1.4.2012 Bee keeping
years 1.4.2012 Warehouse- sugar storage
allowed
Revenue exp - only statistical research or 1.4.2014 Iron ore slurry pipeline
salary and material
used for SR scientific research 1.4.2014
1.4.2017
Semiconductors wafer fabrication
Developing or maintenance of new infrastructure facility

Sale of scientific research asset Important notes 35AD

Prior to commencement capex allowed, if capitalised
Original cost Payment in cash not more than ₹10,000
Section 10AA or chapter VI A profit linked deduction not allowed

Zero Written PGBP inc. Capital gains

Asset must not be transferred before 8 years
If transferred in normal business then Deemed business income
= Deduction u/s 35AD - deemed depreciation
down value u/s 41
Transfer of SR asset in normal business- to be
added n block at nil value
For CMA & CS students
Sec 35D Preliminary expenses Sec 35DD Amalgamation expenses
Actual prem. expenses
Or Lower - Allowed in 5 instalment Allowed for companies in 5 instalments
5% of cost of project

Actual prem. expenses

Company assessee

Lower - Allowed in 5
Or
5% of cost of project instalment Sec 35DDA VRS expenses
5% of capital employed Higher
Allowed in 5 instalments

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 10

CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Sec 36(1)
°
%
/
!
#nec
* @\ Other deductions Sec 37(1) General deductions
Insurance of stock The following conditions must be satisfied

!
Insurance of livestock
Not covered Must be Not a personal Must not be
-
Health insurance of employees & family u/s 30 to expense, must illegal i.e.
revenue in
-
Bonus & commission- 43B 36 nature be for business prohibited by law
Interest on borrowing (capitalise till the asset is
put to use) Note: CSR expenses not allowed
Interest on Zero Coupon Bonds (spread over life)
Employer contribution to statutory or RPF - 43B
Employer contribution to pension scheme -43B
and also max 10% of salary (BS +DA forming Sec 37 (2B) Political party
part) Any expenses for adv. in political party
Bad debts (provision for doubtful debts not souvenir, hoarding etc. not allowed
allowed)
Provision for doubtful debts allowed only for
banks(7.5%) & FIs(5%) CMA & CS Sec 38 Proportionate deduction
Family planning expenses- only company assessee
- Revenue and capital exp. (capex in 5 Expenses if not exclusively incurred for
instalment) business/profession are allowed proportionately.
Securities transaction tax STT
Commodities transaction tax CTT

Sec 40(a) Expenses not allowed

&
Interest, royalty, FTS payable outside India w/o TDS - 100%
Payment to resident w/o TDS on which TDS provisions apply - 30%
I Salary payable outside India w/o TDS -100%
TDS must be deducted in PY & must be deposited on or before due date of ROI
Income tax or provision for income tax
I
Tax paid by employer on non monetary perquisites

Then it is assumed that TDS has been

If the deductor, fails to deduct TDS,
deposited on the date of such filing of
however the deductee files their ROI
ROI and therefore deduction is allowed
and pays Tax an such income
when such ROI is filed.

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 11

CA Rajat Mogha Income tax - Chartbook

Sec 40(b) Remuneration Sec 40A(2) Excess payment

to partners Any excess or unreasonable payment to related person is disallowed
Individual Relative of individual

i
Interest on capital is allowed to all Firm Partner or relative of partner
partners as per the partnership deed,but HUF/AOP Member or their relative
maximum is 12% pa simple interest Company Director or their relatives
Remuneration to non-working partners is not allowed. Note: Any individual having substantial interest i.e. 20% or more
ownership is related and also any RELATIVE of such individual
Remuneration to working partners Relative - Spouse, siblings and lineal ascended or descendants
is allowed, as per partnership deed, but
maximum as following % of book profits
Sec 40A(3) Cash payment
Any payment made in a single day to a single party of more
Book profits Maximum remuneration than ₹10,000 in cash, bearer or crossed cheque is disallowed.
Up-to first ₹3 lacs ₹150,000 or 90% of Payment for transportation of goods is allowed upto
or in case of loss book profits, higher ₹35,000
On balance 60% Allowed mode account payee cheque, bank draft, ECS, Debit
or credit cards, UPI, e-wallet, etc.
How to calculate book profits? Some exceptions
Determine PGBP income w/o any
interest or remuneration to partners xx Payment to banks/Govt.
Less: Interest allowable to partners (xx) Purchase of agriculture or forest produce, fish, meat, poultry,
Less: B/f unabsor. depn, if any (xx) horticulture, apiculture from the producer/cultivator.
BOOK PROFITS XXX Purchase of products made w/o power manufacturer.
Payment made in a village where there is no bank
Payment to employee on retirement upto ₹50,000
How to calculate final PGBP of firm? Payment by authorised dealer for purchase of Foreign currency
Book profits as computed above XX
Less: Remuneration allowed to partners (xx)
PGBP of the firm XXX
Sec 40A(7) Provision for gratuity
Provision for gratuity to only approved gratuity fund is
allowed, subject to 43B

Sec 43B Expenses allowed on

Sec 41 Deemed business income actual payment
Bad debts recovered, which were allowed earlier. Any tax, cess payable to government.
Bonus or commission to employees.
Cessation of any trading liability. Interest to any bank/ FIs / notified NBFCs
Amount received on sale of power generating/ Payment of leave salary.
scientific research, telecom licences etc. Payment to Indian railways for use of rail assets.
Original cost Written agreement - As per agreement or max 45 days
Payment to MSME
No agreement - max 15 days
PGBP loss Written PGBP inc. Capital gains
down value u/s 41
Sec 43CA Real estate business
Sale consideration should not be less than stamp value
Actual sale price admissible it stamp value does
not exceed 110% of selling price
In case of prior date agreement, then take stamp value of such
prior date provided some consideration is received earlier by
banking mode (not in cash)
www.rajatmogha.com 9690691957 Income tax - Chartbook Page 12
CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Sec 44AA Books of accounts Sec 44AB Tax audit

Notified Business

..
Always required
professionals Existing: If gross receipts of all 3 assessee with
T/O exceeds
Medical, engineer,
lawyers, CAs, CMAs,
preceding years exceeds ₹1.5 lacs
New: T/O of the PY likely to exceed cash transactions ₹1 cr in PY
Assessee opting 44AD is
CS, architect, interior ₹1.5 lacs
decorator, film artists
then prescribed accounts
exceeding 5% exempt with T/O upto ₹2 cr

Cash book, journal, ledger, Bills issued of more than ₹25 and Business
bills received of more than ₹50
Also daily case register and inventory details in case of doctors assessee with T/O exceeds
Individual/HUF Others cash transactions ₹10cr
Businessman Income exceeds ₹2.5 lacs or Income exceeds ₹1.2 lacs or upto 5%
T/O exceeds ₹25 lacs of any T/O exceeds ₹10 lacs of any
and other of the 3 preceding years
professionals
of the 3 preceding years
Assessee carrying Gross receipts
Income likely to exceed ₹2.5 Income likely to exceed ₹1.2
lacs or T/O likely to exceed
profession exceeds ₹50 lacs
lacs or T/O likely to exceed
₹25 lacs of PY ₹10 lacs of PY
Persons eligible for presumptive income but
Persons eligible for presumptive income but declaring lower
declaring lower profits are also required to get audit.
profits are also required to maintain books

Sec 44ADA Presumptive - Professionals

Professionals as referred in 44AA where gross receipts is upto ₹50
Sec 44AD Presumptive income lacs /₹ 75 lacs if cash receipts upto 5%
Presumptive income - Minimum 5o% of gross receipts
Resident Individual, HUF & firm(not LLP) with
T/O upto ₹2 cr/₹3 cr if cash receipt upto 5%
Presumptive income - Minimum 8% of T/O (6% in case of
Sec 44AE Goods carrying vehicles
banking transactions) Assessee owning not more than 10
Non applicability of this section goods vehicles at anytime during PY
Specified professionals covered u/s 44AA
Assessee earning commission or brokerage income Heavy goods vehicles ₹1,000 per ton of gross vehicle
Person carrying agency business Weight more than 12 tons weight (for every month or part of
month for each vehicle)
Person referred u/s 44AE - goods carrying vehicles
Person claiming deduction u/s 10AA and chapter VI-A Other vehicles ₹7,500 for every month or part of
profit linked deduction month for each vehicle)

Agricultural income
For CMA & CS students
Sec 44B Non resident
Shipping business Business Agriculture
Amount received in India
7.5% Amount received anywhere, of journey
from Indian port to any port outside India
Rubber 35% 65%

For CMA & CS students

Coffee
Sec 44BBA Non resident Grown & cured 25% 75%
aircraft business Grown, cured, 40% 60%
Amount received in India roasted & grounded
5% Amount received anywhere, of journey from
Indian airport to any airport outside India
Tea 40% 60%

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 13

 CA Rajat Mogha Income tax - Chartbook

Capital gains Sec 45(1) Charging section

45(1) Charging section of capital gains
Taxable in the
45(1A)
45(2)
Insurance claim
Conversion of CA into SIT
Any profits
or gains
+Transfer +Capital
assets
+hands of transferor
45(5) Compulsory acquisition
46 Liquidation of companies
46A Buy back of shares Section
- 2(14) Capital assets
47 Transactions not transfer
48 Computation of capital gains All assets are capital assets
49 Cost of acquisition Please note securities held by FII are also capital assets
50 Depreciable assets Except the following
50A Sale of individual assset ·
Stock in trade Some personal movable assets are capital assets
50B Slump sale -
Personal movable assets -
Jewellery/precious and semiprecious stones
50C Real estate transactions -
Rural agriculture land I
Paintings/drawings/sketches
50CA Consideration for unlisted shares Sculptures
Gold deposit bond
50D
51
54
Consideration not determinable
Forfeiture of amount
Exemption in case of residential property
! Archaeological collections/any work of art
Securities and Virtual digital assets
54B Exemption agriculture land
54D Compulsory acquisition of L&B industrial units
54EC
54F
NHAI or RECL
LTCG other than residential property Period of holding
-
55(1) Cost of improvement
55(2) Cost of acquisition
-
It starts from the date of acquisition to 1 day before the date of transfer
Reference of valuation officer
55A -
If it is more than three years then long-term capital gain otherwise short-term
Other sections
2(14) Capital asset
I
In some cases the period will be taken as one year or two year

1 2
2(47) Transfer
10(37)
112
Compulsory acquisition of agricultural land
Computation of long-term capital gain
One year Two years
111A Short-term capital gains on shares
-Listed securities Unlisted shares - equity or
112A Long-term capital gains on shares Equity oriented units of mutual fund
: Units of UTI
Zero coupon bonds
preference
Land or building or both

Market linked debentures & Specified mutual fund units - Always short term

Section 48 computation of capital gain

·
Full value of consideration XX Notes:
Less: -
CII of PY2023–2024 = 348
Cost of acquisition X Asset acquired before 1 April 2001 then take CII as 100 and cost of acquisition can also
Cost of improvement X be taken as FMV as on 1 April 2001 if it is higher.
Expenses on transfer X In case of land or building FMV as on 1 April 2001 should not exceed stamp value as on
Short-term XX 1 April 2001
In case of long-term capital asset the Any improvement before 1 April 2001 is to be ignored
COA and COI will be indexed No indexation in case of bonds or debentures (except capital index bonds & SGBs)
COA/COI shall not include, deduction of interest claimed u/s 24(b) or chapter VI-A
CII of the year of transfer Cost of
Indexed cost of acquisition=
CII of the year in which the
X acquisition
asset was first held by assessee
Also refer Manjula J. Shah case

Section 45(2) conversion of capital assets into

Section 45(1A) Insurance claims stock in trade
Capital gains will be taxable in the year when the Capital gains will arise in the year of actual sale of stock

claim is received In the year of actual sale there will be two types of gains one PGBP and other
capital gains
I Full value of consideration will be the amount T Full value of consideration will be the FMV as on the date of conversion
of claim (if asset is in kind then take FMV) - Indexation will be done only up to the date of conversion.

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 14

CA Rajat Mogha Income tax - Chartbook

Section 45(5) Compulsory acquisition

T
of capital asset Section 46A Buyback of Shares or Specified
- Capital gains will be taxable in the year when the compensation Securities
is first received
Buyback of specified securities Buy back of shares (listed or unlisted)
Full value of consideration will be the amount of compensation Capital gain will arise in the hands Capital gain will be taxable in the hands of
company at the rate of 20% plus surcharge 12%
Enhanced compensation of securities holder
plus cess 4% under section 115QA.
In case of enhanced compensation capital gains will again arise in the year - Therefore such capital gains will be exempt in the
when such enhanced compensation is received
hands of shareholder under section 10(34A)
Full value of consideration will be the amount of enhanced compensation
received
Cost of acquisition will be nil
Expenses on transfer can be taken as any legal expenses
Section 47 Transaction is not regarded as transfer -

Interest on delayed compensation is taxable under IFOS after -

Distribution of capital assets on total or partial partition of HUF
50% flat deduction
I Transfer of capital asset under a gift/will/irrevocable trust
If the actual compensation is reduced then the original capital - Transfer of capital asset by holding company to its 100% Indian subsidiary company or by a
-
gain shall be re-computed subsidiary company to its 100% Indian holding company
I Transfer by issue of shares by the resulting company in the scheme of demerger
- Capital gains will be exempt in case of compulsory acquisition
of agricultural land (urban) by the government & Transfer of assets in the scheme of amalgamation.

Transfer of shares of amalgamated company to the existing shareholders of old amalgamating

Section 46 distribution of assets by company.
company on liquidation Conversion of debentures/bonds into shares.
Transfer of rupee denominated bonds outside India by a non-resident to another non-resident.
I Capital gains will arise in the hands of shareholder as his - Redemption of sovereign gold bonds by RBI - only for individual assessee.
shares are getting transferred
Transfer of paintings/drawings/ sculptures or archaeological collection to national museum/
- Full value of consideration will be the market value of assets universities/government.
received plus any money received as reduced by the amount
Conversion of Physical gold into EGRs or vice-versa
of deemed dividend 2(22)(c)
Transfer in the scheme of reverse mortgage.
/ Such deemed dividend will also be taxable in the hands of
shareholder under IFOS

Please note: Now there is no concept of CDT

Section 50 capital gain in case of

Depreciable assets
Compute in the same manner as depreciation format under Section 50B Slump sale
section 32.
·
Full value of consideration will be the selling price or
Indexation benefit is not available. FMV,higher
Such gain or loss shall always be short-term. Cost of acquisition and cost of improvement will be taken
as the net worth of the entity.
Net worth is equal to the assets minus outside liabilities.
While calculating net worth any revaluation of assets must
be ignored.
·
Such capital gain could be long-term or short-term
depending upon the period of the undertaking.
There is no benefit of indexation.

Section 50A transfer of individual assets

Capital gain can be short-term or long-term depending
upon the period of holding.
Original cost

PGBP loss Written

down value
PGBP inc. Capital gains
u/s 41

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 15

CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Sec 50C Real estate transactions Section 50CA Consideration of

↓
&
Sale consideration should not be less than stamp value unlisted shares
I Actual sale price admissible it stamp value does Actual selling price should not be less than the fair
not exceed 110% of selling price market value.
In case of prior date agreement, then take stamp value of such
prior date provided some consideration is received earlier by
banking mode (not in cash) Section 50D full value of
Assessee can also request the valuation by the valuation officer and if consideration - unascertainable
such valuation officer refers a value less than the stamp value then
In such case the FMV as on the date of transfer
such valuation officer value can be taken as full value of consideration.
shall be considered as full value of consideration.

Section 51 advance money forfeited

Advance received before Advance received on or
1.4.2014 after 1.4.2014 Section 54
Advance forfeited will be deducted
from the cost of acquisition when
Such advance money forfeited exemptions
will be taxable under IFOS in
capital gain arises in the hands of the year of forfeiture. Refer page 18 &19
the transferor who has forfeited the
amount.

@\@\
_
E
*
⑦
°
°
\
°@\@\@\@\ @ ° ° @ _
°Capital
\ ° gains in case of self generated assets
Goodwill of a business or profession
COA COI
· Right to manufacture, produce or process any article Actual
Right to carry on any business or profession purchase Always nil
Any other intangible assets price
Tenancy rights Actual Actual
: Trademark or brand name associated with business
purchase improvement
Route permits price cost
· Loom hours
In case the above assets are self generated before 1.4.2001 then the
fair market value as on 1.4.2001 should not be taken and will be
taken as NIL

°
②
⑳ Reference
Section 55A°
\
T @ o to valuation
* officer
( Where the value claimed by the assessee
I
Other cases
is as per the registered valuer
AO is of the opinion that the FMV of the said asset exceeds
the value claimed by more than
AO is of the opinion that value so claimed is I
15% of the claimed value
different from FMV Rs.25,000
Whichever is lower
-
The nature of the asset is such that it requires valuation

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 16

CA Rajat Mogha Income tax - Chartbook

Capital gains on shares or securities

Bonus shares Right shares
Allotted before 1.4.2001 COA = FMV as on 1.4.2001 Nature of asset Cost of acquisition
Allotted on or after 1.4.2001 Nil Original shares Actual amount paid for the shares
Offer of right Nil
Right shares acquired Actual amount paid for acquiring
right shares
Section 112A Tax rate in case of

·
Right shares acquired by Amount paid to the company + amount
transferee for purchasing the right
long-term shares etc.
Special tax rate @ 10% -
Chapter VI A is not available from 112A
Equity shares of a company -
Adjustment of un-exhausted basic
Equity oriented units exemption limit for resident individual or
Units of a business trust HUF is available from 111A
Transaction is on RSE where STT is paid Rebate of 87A is not allowed from 112A
In case of IFSC transactions, no requirement of STT
Indexation benefit is not available but ₹1 lac is exempt.

Assets acquired on or before 31.1.2018

Actual cost Assets acquired on or after
FMV as on 31.1.2018 1.2.2018
whichever is higher

If FMV as on 31.1.2018 is higher than the selling Actual cost

price, then cost of acquisition will be higher of the
following
Actual cost
Selling price

Section 111A Tax rate in case of short-term shares etc.

Special tax rate @ 15% Transaction is on RSE where STT is paid
of STT
In case of IFSC transactions, no requirement
Equity shares of a company Chapter VI A is not available from 111A
Equity oriented units Adjustment of un-exhausted basic
Units of a business trust exemption limit for resident individual or
HUF is available from 111A
Rebate of 87A is allowed from 111A

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 17

CA|CMA|CS
 CA Rajat Mogha

54 54B 54EC 54F

www.rajatmogha.com
Exemption in case of Exemption agriculture land NHAI or RECL
Section LTCG other than residential property
residential property

Eligible assessee Individual or HUF Individual or HUF Any assessee Individual or HUF who does not have more than one residential house.

Residential house property Agriculture land used for

Long-term land/building/both Any long-term capital asset (not residential house)
Asset transferred agriculture purpose for last 2 years

9690691957
Type of capital asset Long-term Long-term Long-term Long-term
In residential In agriculture land NHAI or RECL bonds
Amount to be invested In residential house property
house property (urban or rural) (5 years)

Purchase – 1 year before or 2 Purchase – 1 year before or 2

Purchase – within 2 years Within 6 months from the date
Time limit years after the date of transfer years after the date of transfer
after the date of transfer of transfer
Construction within 3 years Construction within 3 years
from the date of transfer

Income tax - Chartbook

from the date of transfer

CG scheme Applicable Applicable Not applicable Applicable

Amount invested Amount invested Amount invested
Amount of exemption Gross LTCG Gross LTCG Amount invested X Gross capital
Gross LTCG Net consideration gain
₹ 10 crore ₹ 50 lakhs
whichever is lower whichever is lower Whichever is lower Amount invested should not be more than ₹10 crores
If the new agriculture land If such bonds are
If the new house is If the new house is transferred within 3 years.
(urban) is transferred within transferred before expiry
Withdrawal of transferred within 3 years. 3 years from the date of If any other new house is purchased with 3
of 5 years, Or
If the amount of CG scheme purchase years.
exemption any loan is taken against
is not utilised. If amount of CG scheme is If the amount of CG scheme is not utilised.
such bonds
not utilised

CA|CMA|CS
If the amount of capital
gain is not more than Rs.2
Remarks, if any cr. then 2 houses can also
Income tax - Chartbook

be purchased

Page 18
#
 54D 54G CMA & CS only 54GA CMA & CS only 54GB CMA & CS only
CA Rajat Mogha

www.rajatmogha.com
Section Compulsory acquisition of land Shifting of industrial units Shifting of industrial units Investment in SME
and building from urban area to rural area from urban area to SEZ
Eligible assessee Any assessee Any assessee Any assessee Individual or HUF
Land or building which is being Any residential property
Asset transferred used by the assessee for industrial
Land/building/ Land/building/
P&M in urban area P&M in urban area (house or plot)

9690691957
purpose for last 2 years

Type of capital asset STCG/LTCG STCG/LTCG STCG/LTCG LTCG

Land or building for Land/building/P&M Land/building/P&M Equity shares of
Amount to be invested industrial purpose in rural area in SEZ eligible company
1 year before or 3 years Company should purchase new was
Within 3 years from 1 year before or 3 years
Time limit it within one year from the date of
the date of transfer after the date of transfer after the date of transfer subscription of equity shares

Income tax - Chartbook

CG scheme Applicable Applicable Applicable Applicable
Amount invested Amount invested
Amount invested Gross CG Gross CG
Amount of whichever is lower whichever is lower Amount invested Gross
Gross CG X
exemption Net consideration capital gain
whichever is lower Amount invested = Cost of assets purchased + Amount invested = Cost of assets
shifting expenses + other notified expenses purchased + shifting expenses + other
notified expenses

If new asset purchased is transferred by the

If new land or building If new asset is transferred If new asset is transferred company with a 5 years/3 years in the case
Withdrawal of purchased is transferred within of computers.
exemption within three years from the within three years from If the equity shares are sold within 5 years
3 years or CG scheme amount the date of purchase.
date of purchase. from the date of acquisition
is not utilised

CA|CMA|CS
If CG scheme amount is not utilised

-
#
Income tax - Chartbook

Page 19
 CA Rajat Mogha Income tax - Chartbook

Income from other sources

56 Charging section of IFOS Section 56(2) specific income
57 Deductions allowed
58 Deductions not allowed covered under IFOS
Dividend income
59
-

Deemed by IFOS ·
Casual income i.e. winning from lotteries, crossword puzzles races, card games etc.
Gifts from friends or relatives

..
· Any sum of money or property received without consideration or in adequate
Section 56(1) general consideration.
Consideration received in excess of FMV of shares of a closely held company
Charging section
-

Interest received on delayed compensation

·
Income must not be covered under four heads Advance money forfeited
Income must be revenue nature Renting of plant and machinery, furniture if it is not chargeable under PGBP
It should not be exempt u/s 10 Renting of building along with plant and machinery, furniture, if it is not separable
and also not chargeable under PGBP.

Taxability of gifts
momm
Cash gifts Movable gifts ·
Immovable gifts
Without Without
consideration With in-adequate consideration
Aggregate consideration With in-adequate consideration Consideration
exceeds Aggregate Consideration Stamp value of each Stamp value of each (-) paid for that
Aggregate FMV property
Rs.50,000 exceeds FMV of all (-) paid in property exceeds property
such gifts aggregate Rs.50,000
Rs.50,000
If such Difference exceeds,
If such a difference exceeds Rs.50,000

:
Rs.50,000 then such 10% of consideration
difference will become IFOS Which ever is higher
Income Then such difference will be considered
Please remember only capital assets are to be as IFOS Income
Stamp value to be taken as on the date of registration, but if
considered under movable gifts, if such movable gift there is a prior date agreement and some consideration is paid
is not capital asset then it is not taxable. by any mode other than cash then stamp value as on the date
of agreement will be taken.
The following gifts will be exempt

W
↑

-
From relatives
On the occasion of marriage of the individual
-
Under a well or by way of inheritance Relatives
-
From any local authority Spouse of the individual
I
From any fund or Foundation or University as ·
Brother or sister of the individual
referred u/s 10 (23C) -

Brother or sister of the spouse of the individual

-
From any trust or institution registered under 12AA
/
Brother or sister of either of the parents of the individual
.

Any lineal ascendant or descendant of the individual

I

Any lineal ascendant or descendant of the spouse of the individual

Covid -19 Spouse of the person as referred above

-
↑

COVID 19 Positive
-
Medical treatment - Exempt · Death or treatment report
because of Covid
On Death - from employer - Fully exempt -
For self or relative- spouse or children,
dependent parents or siblings
From others - Upto ₹10 lacs

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 20

CA Rajat Mogha Income tax - Chartbook

Section 57 Deductions allowed under IFOS

In case of dividend income only interest expense on borrowing is allowed and maximum 20%

!
of such dividend income (Important – no other deduction is allowed from dividend income)
In case of family pension – 1/3 of such pension or Rs.15,000, whichever is lower
In case of interest on delayed compensation– Flat deduction of 50%
In case of interest on post office savings account – Rs. 3,500 (₹ 7,500 in case of joint
account)
In case of other IFOS income – all revenue expenses incurred to earn such income or allowed.
Important note
NO deduction is allowed from casual income.

Sum received under LIC

Section 58 Deduction not allowed Policy issue date
Premium of any
year is more than
I
Any capital expenses
-
Any personal expenses Before 1st April 2012 20%
-
Any payment made in excess of Rs.10,000 in a single day
I
Any unreasonable/excessive payment to related person to the extent of Between 1st April 2012 to 31st 10%
such excess over FMV March 2013
Any payment outside India without TDS – 100% disallowed
· Any payment to resident within India where TDS provisions applies but Between 1st April 2013 to 31st 10% or 15% (for
-
TDS not deducted or deposited – 30% disallowed March 2023 disabled)
I
No deduction allowed from casual income
On or after 1st April 2023 10% or 15% or ₹5
lacs
Section 59 Deemed IFOS
Any expense claimed under IFOS if subsequently recovered
then it will become IFOS income in the year of recovery

Section 2(22) Deemed dividend

(a) Distribution of assets to the extent of accumulated profits
(b) Issue of debentures or other securities to the shareholders without
consideration to the extent of accumulated profits
(c) Distribution of assets on liquidation to the extent of accumulated
profits
(d) Distribution of reduction of share capital to the extent of
accumulated profits
(e) Loans and advances by a closely held company to its shareholders or
its related person who holds at least 10% of shares

Agricultural income earned outside India is taxable under IFOS

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 21

CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Clubbing of income If an asset is transferred on revocable basis, but

Any income transferred Whenever asset is transferred on
without transfer of asset revocable basis then the income arising there is an agreement that the asset cannot be
shall be clubbed in the from such asset shall also be clubbed taken back during the lifetime of the transferee,
hands of transferor. in the hands of transferor. then income from such asset shall not be clubbed.

Provisions related to spouse

X
Remuneration
!
roc
°
@
@
° °@}@
@ °received by spouse
I
If the spouse is receiving remuneration from the concerned where the individual has substantial interest, then such remuneration
shall be clubbed in the hands of the individual.
-
In case the remuneration is justified, because the spouse has adequate skills, competence or qualification then do not club such
remuneration.
-
If both husband and wife have substantial interest and they are receiving remuneration without any Experience/competence/
skills , then such Remuneration shall be clubbed in the hands of that individual whose income before such clubbing is higher.

Asset transferred to spouseI

↑
Income arising from transfer of any asset without adequate consideration shall be clubbed in the hands of transferor.

:
Living apart is considered as adequate consideration.
Clubbing provisions will not apply if a house is transferred, because here the concept of deemed ownership (section 27) will apply.
If the transferred asset changes form or shape then it does not matter and clubbing provisions will apply.
Income arising from club Income shall not be clubbed.

in spouse business
Capital invested**
+
The profit arising from such business shall be clubbed in the hands of transfer in the following proportion
Capital invested by transfer as
on first day of the previous year Profit of the business
-
X during the previous year
Total capital of the business as on
first day of the previous year Similar provisions will apply in case of son’s wife also

Income of minor child -

- Transfer of self-
acquired property to HUF
-If an individual transfers his self acquired property to his
All income arising to a minor child (including minor
HUF, then income from such transferred asset shall also
married daughter) shall be clubbed in the hands of that
be clubbed.
parent whose income before such clubbing is higher. ·
But after partition of HUF, only the share which is related
to him and his spouse shall only be clubbed.
-
In case of single parent, income shall be clubbed in the
hands of that parent.
I
Whenever income of minor child will be clubbed then
an exemption of Rs.1500 per child shall be given.
(Such provisions will not apply in case of new
taxation regime)

Following income of minor child shall not

-
be clubbed
Income from manual labour
Income from specialised knowledge, talent or experience
Income of a minor child who is disable

www.rajatmogha.com Income tax - Chartbook CA|CMA|CS Page 22

 CA Rajat Mogha Income tax - Chartbook

Set off and carry forward of losses

Intra head set off
-
Generally losses under the same head can be set off from the profits under same head

Speculation loss Specified business LTCG Horse race business

Losses from specified
Losses from speculation business can be set off Losses from the activity of
Long term capital
business can be set off from specified business owning and maintaining
loss can be set off
from Speculation business profits only. race-horses can be set off
from LTCG only
profits only (Section35AD) from such profits only

Inter head set off

y

&
Losses from one head can be set off against the profits of another head Important note
There are certain exceptions Losses from gambling, betting, card games,
HP can be setoff from other heads with a limit of ₹2 lacs. (Under optional scheme only) etc.cannot be set off nor can be carried
· PGBP losses cannot be set off from salary income forward.
- Capital gain losses cannot be set off from other heads
Losses from an exempt source cannot be
& Speculation business losses, specified business losses cannot be set off from setoff nor carried forward.
other business income or from any of the head
I Losses from the activity of owning and maintaining racehorses cannot be set-
off from other income. It can be set off from the profits of owning and
maintaining race-horse business

Provision
⑤
°
° @°@s related to carry forward of losses
Speculation business-
- losses Specified
- business losses
House property losses
--- PGBP losses
-
Can be carried forward for 4 Can be carried forward for
Can be carried forward for 8 Can be carried forward for eight years and will be set off from infinite years and will be set
years and will be set off from years and will be set off from any speculation business profits off from specified business
house property income only. PGBP income only. profits only.

Unabsorbed depreciation - Losses from the activity of owning

- Short term capital losses
Can be carried forward for
Long term capital losses ]
\
C@\
and maintaining race horses
infinity years and will be Can be carried forward for eight years Can be carried forward for Can be carried forward for 4 years
set off from any head and will be set off from capital gains 8 years and will be set off and will be set off from business of
except salary either short-term or long-term. from LTCG only. race horses only.

Order of set off

First current year - - Then last year losses ↑

1.Current
year 2.Current
year 3.Current year
capital
4. Brought
forward 5. Unabsorbed
depreciation 6. Unabsorbed
capital
losses depreciation expenditure on losses expenditure on
scientific scientific
research and research and
family family
planning planning

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 23

 CA Rajat Mogha Income tax - Chartbook

under chapter
Deductions- VI-A
-
I - %

Under optional regime only Under optional regime only

Section 80C Deduction in respect Section 80CCC Contribution to

of investment certain pension funds
Individual only
Individual or HUF only
Rs.1,50,000 maximum (80CCE) : Amount
Maximum deduction Rs.1,50,000 (section80CCE)
paid to keep in force a contract for Annuity
Investment in the following assets plan of LIC or any other insurer for receiving pension.
-
Life insurance premium
HUF – for members of HUF Section 80CCD New pension scheme
Individual – self, spouse, children only 80CCD(1) Rs.1,50,000 - sec 80CCE
Under optional 10% of salary (BS+DA forming part)
Date of issue of policy Maximum deduction regime only 20% of gross total income in case of non-salaried
Before 1.4.2012 20% of sum assured
Between 1.4.2012 to 31.3.2013 10% of sum assured 80CCD(1B) Additional deduction for assessee’s contribution
On or after 1.4.2013 10% of sum assured – maximum Rs.50,000
(15% in case of disabled)
80CCD(2) 10% of salary
Under both 14% of salary in case of CG employee
I
Deferred annuity plan
regimes This is not available to non-salaried assessee
- Employee contribution to SPF/RPF/superannuation
fund
PPF
Tax treatment – withdrawal from NPS
! Sukanya Samriddhi scheme
National savings certificate
·Amount withdrawn by the subscriber

↑em
Unit linked insurance plan On the death of
Amount withdrawn
Mutual fund scheme – tax saving the subscriber-
is reinvested in a

:
Withdrawl on closure
Scheme of national housing bank amount received Partial withdrawal
annuity scheme or opting out of
Tuition fees – Maximum 2 children by legal heir
scheme
Principal repayment of housing loan Fully exempt Fully exempt Salaried/non-salaried
Fixed deposit – 5 years
Taxable 40%
Post office deposit scheme – 5 years
: Bonds of NABARD
Deposit in senior citizen scheme - Resident only Salaried subscriber
Exempt 60%
Non-salaried
I
Contribution to additional account under NPS – Tier II Taxable 75% subscriber
Exempt 25% Taxable 100%
Section 80CCH Agniveer Corpus Fund
80CCH(1)
Under optional regime
only Employee contribution to Agniveer Fund

80CCH(2) Employer’s contribution to Agniveer Fund

Under both regimes

Section 80D Health insurance premium Section 80DD medical treatment

Under optional regime only
Individual or HUF only of disabled dependent Under optional regime only
Amount of deduction

·
Rs.25,000/Rs.50,000 (if anyone is Resident individual or resident HUF
Self/spouse/dependent children a senior citizen and resident) Rs.75,000 or Rs.1,25,000 in case of severe disability flat deduction
Rs.25,000/Rs.50,000 if anyone is
Parents (dependent or not) a senior citizen and resident Section 80 DDB Medical treatment of
Under optional regime only
Payment should be other than cash. prescribed disease
· Preventive health check up is also allowed but to a maximum of
Resident individual/resident HUF
Rs.5000 which is overall limit for family and parents
-
Deduction for medical expenditure for resident senior citizen is also Amount of deduction
allowed up to Rs.50,000
I
Actual amount of medical treatment
In case health insurance premiums paid for more than one year then Rs.40,000/Rs.1,00,00 in case of resident senior citizen
allow proportionately. Whichever is lower

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 24

CA|CMA|CS
 CA Rajat Mogha Under optional regime only Income tax - Chartbook

- -
Section 80E Loan for higher-
education
&
Eligible assessee: individual who has taken education Section 80G Donations
loan for self/spouse children/Adopted student
100% of the amount 50% of the amount

> ..
-
Loan should be taken from any financial institution/
National defence fund PM drought relief fund

:
government/approved charitable institution
-
Only interest portion allowed and maximum for 8 years PM national relief fund
from the year when first instalment is paid National children’s fund
National foundation for communal
Section 80EE interest on home loan harmony
x
residential house Approved universities

!
Zilla Sakshi the Samiti
-
Eligible assessee individual who is purchasing a house for National sports fund
the first time National cultural fund
Loan must be sanctioned between 1.4.2016–31.3.2017
Swatch Bharat Kosh
! Maximum loan amount – Rs.35 lacs
Maximum property value – Rs.50 lacs
Maximum deduction Rs.50,000
Clean Ganga fund
National fund for control of drug
abuse
Section 80EEA interest on home loan PM cares fund
residential house 100% of the amount 50% of the amount
<
Eligible assessee individual who is purchasing a house subject to qualifying limit subject to qualifying
for the first time
Loan must be sanctioned between 1.4.2019–31.3.2022
Promotion for family planning limit
: Maximum property stamp value – Rs.45 lacs
Maximum deduction Rs.1,50,000
Indian Olympic Association Charitable institution
Renovation of religious place

Section 80EEB Interest on loan – Qualifying limit – 10% of adjusted GTI

-purchase of electric vehicle Adjusted GTI
Eligible assessee: only individual
GTI - all deduction under chapter VI-A (except 80G) – STCG – LTCG

!
Loan must be sanctioned between 1.4.2019–31.3.2023 No deduction shall be allowed for the amount in excess of
Loan must be taken from banks/financial institution/NBFC Rs.2000,if paid in cash
Maximum deduction Rs.1,5,00,00
Allowed for 2/3/4 wheeler

Section 80GG deduction in

Section 80GGA donation for scientific
respect of rent paid research/rural development
Eligible assessee individual Any assessee who does not have PGBP income
Condition – · Amount of deduction – 100% of the amount
No deduction shall be allowed if the amount is an
He must not be receiving HRA
: He/his spouse/minor child/his HUF does not own any house excess of Rs.2000, paid in cash

where he is paying rent where he ordinarily resides or perform

his duties

Amount of deduction Section 80GGB & 80GGC political parties

me Least of the following Amount of deduction – 100% of the amount contributed

80GGB for company assessee
Actual rent paid – 10% of adjusted GTI
80GGC for other assessee
25% of adjusted GTI
Rs.5000 per month
Adjusted GTI
GTI - all deduction under chapter VI-A (except 80GG) – STCG
– LTCG

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 25

CA Rajat Mogha Income tax - Chartbook

Sec 80JJAA Deduction in respect of new employment

Eligible assessee – all assessee who are required to get their accounts Under both regime

!
audited under section 44AB
Amount of deduction – 30% of the wages paid to the new workmen
Period of deduction- 3 years including the assessment year relevant to the
previous year in which such employment is provided
Other conditions
Employee must not get more than Rs.25,000 per month
Employee should participate in RPF
Employment must be for the period for at least 240 days (150 days in
case of apparel/footwear/leather business)
Casual employees not allowed

Section 80QQB Royalty income on books

Eligible assessee: resident individual Under optional regime only Section 80RRB Royalty income on patents
Amount of deduction – lower of the following Under optional regime only
Eligible assessee: resident individual
Profit from such royalty, or Amount of deduction – lower of the following
Rs.3 lacs Profit from such royalty, or
In case of regular royalty income should not more than 15% of the value of Rs.3 lacs
books sold In case of royalty received from outside India – such royalty must be
In case of royalty received from outside India – such royalty must be received within 6 months from end of PY, in foreign currency
received within 6 months from end of PY, in foreign currency
Textbook/pamphlets/newspaper/magazines/journals - Not allowed

Section 80TTA Interest on deposit in saving accounts Under optional regime only
Eligible assessee – individual(other than resident senior citizen)or HUF
Amount of deduction
Lower of the following
Saving account interest
Rs.10,000

Interest from banking company/cooperative banks/Post Office

Section 80TTB Deduction in respect of

Under optional regime only
interest on deposits
Eligible assessee – resident senior citizen
Amount of deduction
Actual amount on interest on deposit
Rs.50,000
Which ever is lower
Such deposits can be with a bank/cooperative bank/PostOffice

Section 80U Person with disability Under optional regime only

Resident individual
Rs.75,000 or Rs.1,25,000 in case of severe disability
flat deduction

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 26

CA|CMA|CS
CA Rajat Mogha Income tax - Chartbook

Tax deducted at source

Sec 192 TDS on salary Sec 194 Dividend
At average rate of tax

·
Rate of TDS – 10%
At the time of payment
Payment made to resident shareholder
More than one employer – anyone can deduct
TDS to be deducted before making any payment of
Income other than salary can also be furnished to
dividend
employer and also losses from house property- In case
Limit Rs.5000 if dividend is given by any mode other
of optional regime
than cash (no limit in case of cash dividend)
Section 197 is applicable(Certificate from AO)
Section 197 and 197A is allowed

Sec 192A Premature withdrawal - EPF Sec 194A Interest other than securities
Rate of TDS – 10% Rate of TDS – 10%
Payment Rs.50,000 or more Payment made to any resident
TDS at the time of payment TDS to be deducted at the time of payment or credit whichever is
Section 197 (Certificate) and 197A (declaration) is allowed earlier
Limit Rs.40,000 in case interest is paid by banking company/
co-operative bank/PostOffice (Rs.50,000 in case of senior
citizen)
Sec 193 Interest on securities Interest paid by others Rs.5000
Section 197 and 197A is allowed
Rate of TDS – 10%
Payment made to any resident Note:
At the time of credit or payment whichever is earlier Interest paid by individual or HUF – if turnover exceeds Rs.1 cr
Limit Rs.5000 in case of interest on the debentures (Business)or Rs.50 lacs (Profession) in preceding FY
paid by account payee cheque (no limit in case of cash) TDS by cooperative Society on interest to members is also
Rs.10,000 in case of taxable savings bond applicable if turnover of such society exceeds Rs.50 cr during
No TDS on other government securities preceding FY
Section 197 and 197A is allowed

Sec 194B Winning from Lottery/ Sec 194C Payments to contractors

Crossword Puzzle/Card Games etc. Rate of TDS – 1% in case the contractor is individual/HUF
Rate of TDS – 30% 2% if other person
Limit to Rs.10,000 Payment made to resident contractor
TDS at the time of payment TDS at the time of payment or credit, whichever is earlier
Threshold limit – Rs.30,000 for single contract/Rs.1,00,00 in
aggregate during FY
Sec 194BB Winning from horse race Section 197 is allowed
Rate of TDS – 30%
Limit to Rs.10,000 Note
TDS at the time of payment Individual/HUF can deduct TDS if turnover exceeds Rs.1 cr
(business) or Rs.50 lacs(profession) during last FY
Definition of work includes, if material is supplied by the customer
or his related person

Sec 194BA Winning from online games

Rate of TDS – 30%
TDS on Net Winning
TDS at the time of withdrawal & at the end of PY
Net winning = Closing balance + Amount withdrawn - Amount deposited - Opening balance

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 27

CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Section 194G commission

°
⑦ @ on lottery tickets
- Sec 194D insurance commission -
Rate of TDS – 5%
-
Rate of TDS – 5% or 10% in case deductee is co. · Payment to resident or non resident
-
Payment to resident · Limit Rs.15,000
-
Limit Rs.15,000 -
TDS at the time of payment or credit, whichever is earlier
-
TDS at the time of payment or credit, whichever is earlier -
Section 197 allowed
I Section 197 allowed

Sec 194DA Life insurance policy

---
- Section 194H
-
other
I
Rate of TDS – 5% on the income portion commission/brokerage
-
Payment to resident Rate of TDS – 5%

:
-
Limit Rs.1 lakh - Payment to resident
-
TDS at the time of payment ·
Limit Rs.15,000
-
Section 197 and 197A is allowed - TDS at the time of payment or credit, whichever is earlier
Section 197 allowed

E
Section 194-I TDS on rent
Section 194-IA transfer of
I

-
Rate of TDS – 10%
In case of plant and machinery 2%
Amount paid to resident
not $
·
° immovable property
Rate of TDS – 1%
·
TDS at the time of payment or credit, which ever is earlier
Amount paid to resident transferor

..
-
Limit Rs.2,40,000
TDS at the time of payment or credit, whichever is earlier
-
Section 197 and 197A is allowed Limit Rs.50 lacs
Note
-
Individual/HUF can deduct TDS if turnover exceeds Rs.1
cr/50 lacs
Section 194-IB Rent by
certain individual/HUF
Rate of TDS – 5%
-
Rent paid to resident
Payment by individual/HUF whose turnover is less than Rs. 1crore/
50 lacs in last FY
-
Limit more than Rs.50,000 rent for a month or part of the month
TDS to be deducted in the last month of the year or last month of
tenancy
TDS at the time of payment or credit, whichever is earlier

Section 206AA Higher rate of

TDS for not furnishing PAN
If a person does not furnish the PAN to the deductor, then
the rate of TDS will be the higher of the following –
Twice the rate prescribed in the relevant provisions
Twice the rate in force
20% 5% in case of section 194Q

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 28

CA Rajat Mogha Income tax - Chartbook

194-J fees for professional or technical services

Threshold limit
Nature of payment TDS rates (apply separately)
-
Fees for technical services (not being professional 2% ₹ 30,000
in nature)
Fees for professional services

·
10% ₹ 30,000
Royalty in the nature of consideration for sale,
}
·

distribution or exhibition of cinematographic films 2% ₹ 30,000

Other royalty 10%
-
Director fees (other than salary) 10% No limit
↑ Non-competing fees 10% ₹ 30,000
Section 194-LA payment of compensation on
Section 194-K income in respect of units
-
Rate of TDS – 10%
acquisition of certain immovable property
I
Amount paid to resident by mutual fund Rate of TDS – 10%
-
TDS at the time of payment or credit, whichever is earlier Amount paid to resident on compulsory acquisition of immovable property
-
Limit Rs.5,000 -
TDS at the time of payment or credit, whichever is earlier
Limit Rs. 2.5 lacs
Section 194-M payment by an individual/
HUF for contract of work/fees for Section 194-N TDS on cash withdrawal
professional services/commission/brokerage Banks/cooperative banks/ post office are
Rate of TDS – 5% required to deduct TDS on cash withdrawal if
Amount paid to resident for contract work/fees for professional services/ the amount exceeds a certain limit during the
commission or brokerage.
TDS at the time of payment or credit, whichever is earlier previous year
Limit Rs. 50 lacs
Whether ROIs of last 3 PYs of which
Note:
Section 194-M will not apply if 194C, 194H, 194J are applicable
due dates were expired were filed on
time
Section 194P TDS by banks for specified senior citizens If yes - TDS rate will be 2% on the sum
Rate of TDS – Average rate of tax exceeding ₹ 1 crore
Amount paid to resident individual of 75 years or more who has only
pension income and interest from the bank where pension is received
TDS under this section should be deducted after taking sec 192 into If No - TDS rate will be 2% on the
account with respect to TDS on pension and also deductions under VI-A sum exceeding ₹ 20 lacs & 5% on
and rebate u/s 87A
If the senior citizen has other bank accounts also, then this section will sum exceeding ₹1 crores
not apply. For co-op society, limit of ₹1 cr will be replaced to ₹ 3 cr.

Sec 194Q Purchase of goods of value exceeding Rs.50 lacs Sec 194R TDS on business or profession Perquisite
A purchaser whose turnover during the preceding financial year TDS deductor- Person providing any benefit or perquisite
exceeds Rs.10 cr. is required to deduct TDS at a rate of 0.1% of the Deductee - resident person carrying any business or profession
seller who sells goods exceeding Rs.50 lacs Rate of TDS 10% on the sum exceeding ₹ 20,000
Rate of TDS 0.1% on the sum exceeding ₹50 lacs TDS at the time of providing such perquisite.
TDS at the time of payment or credit, whichever is earlier
Please note – TDS deductor is not required to check whether such
benefit is taxable in the hands of recipient

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 29

CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Section 197A no deduction in certain cases

·
Section 197 certificate for deduction at lower rate
Assessing officer can grant a certificate for lower deduction of TDS Assessee can request the deductor for not deducting
or no deduction of TDS if the income of the assessee justifies such TDS if his total income during the previous year is
lower tax rate. less than the basic exemption limit and his tax
Assessee can give application under the following sections – liability is nil.
192, 192A, 193, 194, 194A, 194C, 194D, 194G, 194H,
Such declaration can be given in form number 15G or

·
194I, 194J, 194K, 194LA, 194M and 194O.
in case of senior citizen 15H
Application should be given in form no. 13
It can be given under the following sections – 192A,
193, 194A, 194D, 194DA or 194I

Section 200 – duty of person deducting TDS

1 Deductor should deduct the TDS as
· 2

·
-·
He has to deposit the TDS so deducted
per the provisions of this chapter
within the prescribed time
"
·
within 7 days from the last day of the
month in which deduction is made
If TDS is not deposited then interest at a

*
If not deducted then interest shall be applicable

·
rate of 1.5% for every month or part of the
at 1% per month or part of the month from the month from the date on which such tax was
date on which the tax was deductible to the date
-on which such tax is actually deducted.
deducted to the date on which such tax is
actually deposited

3 4
·

·
TDS certificate should be

·.
Such deductor shall file the

. .
TDS returns issued to the deductee
Form No. 24Q - Quarterly statement for salary

· ·
Form No. 16 for salary - annually upto 31st

·
May of AY

·· ·
Form No. 26QA - Quarterly statement for Form No. 16A for others on quarterly basis.

·
other TDS
- Form No. 16B, 16C & 16D for section 194IA,

* ·-ele
194IB & 194M respectively within 15 days

· ·· 3
Form No.-24QB, 24QC- & 24QD for- section from the due date of furnishing the challan
3
194IA, 194IB & 194M respectively within 30
days from the end of the month in which
cum statement.
deduction is made.

Section 206AB Higher rate of TDS for non-filers of income tax return
=
If a person has not filed his return of last previous years within the due date and the TDS + TCS is
Rs.50,000 or more in such year, then TDS rate will be higher of the following
Twice the rate prescribed in the relevant provisions
·Twice the rate in force
5%
The above section is not applicable in case of TDS under section 192, 192A, 194B, BB, BA, or 194IA,IB, M or 194N

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 30

CA Rajat Mogha Income tax - Chartbook

Tax collected at source

There are certain goods where the seller is required to collect TCS
I
Alcoholic liquor for human consumption 1%
I
Scrap 1%
-
Minerals, being coal, lignite or iron ore 1%
·
Timber 2.5%
I
Any forest produce (other than tendu leaves) 2.5%
·
Tendu leaves 5%

=
Parking lot/toll plaza/mine or quarry TCS on motor cars
TCS will also apply at a rate of 2% by a TCS on motor car at a rate of 1%
person who grants a licence/lease/ where the sale value of motor car
transfers any right or interest in a parking exceeds Rs.10 lacs then the seller is
lot/Toll Plaza/or mine or a quarry to any required to collect TCS on retail sale.
other person for the purpose of business.

TCS on overseas remittance or an overseas tour package

Overseas tour operator Authorised dealer
The seller of overseas Authorised dealer will collect TCS if the amount
tour package is required remitted is an excess of Rs.7 lacs in the financial year.
to collect TCS ⑳
Education or Medical purpose - 5% in excess of ₹7lacs
Upto 30th Sept On or after 1st Oct
·
By taking education loan - 0.5% in excess of ₹ lacs
2023 2023 ·
Other purposes - in excess of ₹7lacs -5% upto 30th
5% on 0 to 7 lacs - 5% sept 2023 and 20% from 1st Oct 2023.
entire Above ₹7lacs - 20%
amount

Sale of goods of value exceeding Rs.50 lacs

A seller whose turnover during the preceding financial year exceeds Rs.10 cr. is required to
collect TCS at a rate of 0.1% from the buyer who purchases goods exceeding Rs.50 lacs

www.rajatmogha.com 9690691957 Income tax - Chartbook Page 31

CA|CMA|CS
 CA Rajat Mogha Income tax - Chartbook

Advance tax
In case of a resident individual who is a senior

=
Liability arises if the advance tax payable is
Rs.10,000 or more citizen 60 years or more then he is not liable to
pay advance tax if there is no PGBP Income

Instalment of advance tax and due dates

On or before 15th June of PY Not less than 15% of advance tax liability
On or before 15th September of PY Not less than 45% of advance tax liability as reduced by
the instalment already paid
·
On or before 15th December of PY Not less than 75% of the advance tax liability as reduced
by the amount already paid
-
On or before 15th March of PY 100 percent of the advance tax liability as reduced by the
amount already paid

Section 234C – interest payable for deferment of advance tax instalments

·
Interest at the rate of 1% per month for a period of three months for every deferment of instalments
But for the last instalment of 15th March, the interest liability will be 1% for one month

Note: If the advance tax paid by the assessee on or before 15th June is 12% or more and on or before 15
September is 36% or more then there will be no interest in the first and second instalment respectively

Assessee covered under presumptive income u/s 44AD or 44ADA

Advance tax liability arises on or before 15th March of previous year and if it is not paid them
interest at a rate of 1% for one month will apply as per section 234C

Important Note
Section 234C interest will not be applicable in respect of the following income
Capital gains
I
Casual income like winning from lotteries, crossword puzzles etc.
I
Income under the head PGBP in case of new business
Section 234C interest will apply on the above income only when such income actually arises

Section 234B – interest for non-payment or short payment of advance tax

If the advance tax paid is less than 90% of the assessed tax then interest at a rate of 1%
per month or part thereof will apply from 1st April of the AY up to the date of determination
of income under section 143(1).

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 32

 CA Rajat Mogha Income tax - Chartbook

Return of income
Section 139(1) Due date of filing ROI
--
Filing of ROI within due date
Assessee who are required to
30th November of AY furnish report under 92E
Every company and partnership firm

Individual, HUF, AOP or BOI and artificial juridical person whose

total income before chapter VI-A and section 54, 54B, 54D, 54EC A company assessee
or 54F exceeds basic exemption limit.
·
31st October of AY A person (other than company)
whose accounts are required to be
A resident person (other than not ordinarily resident) having audited)
foreign assets or signatory of a foreign account, who is the -
Partners of a partnership firm
beneficial owner or beneficiary, whether he has income chargeable whose accounts are required to be
to tax in India or not. audited.
Any person, who during the previous year –
31st July of AY Any other person
Has deposited more than Rs.1 cr in a current account

·.
maintained with a banking company/cooperative bank
Has incurred expenditure of more than Rs.2 lacs for
Section 234F
*
himself or any other person for travel to a foreign country.
E
Has incurred expenditure of more than Rs.1 lac towards
electricity bill Fees for default in furnishing ROI
Business turnover more than Rs.60,00,00 or Rs.10,00,00 in case - Rs.5000, if the return is not furnished on or before
of profession. due date
Aggregate of TDS & TCS is Rs.25,000 or more/Rs.50,000 in case of If the total income of the person does not exceed Rs.5
resident senior citizen lakhs, the fees will not exceed Rs.1000
Rs.50 lacs or more deposited in one or more saving bank account

Section 140A Self assessment tax

·
Section 139(3) Loss return It is the tax which is assessed by the assessee and is
An assessee can carried forward the losses only when required to be paid at the time of filing ROI, after
the return is filed within time and such return is known taking into account –
as loss return. -
Tax already paid
Note
-
TDS/TCS
Losses from house property and unabsorbed depreciation
-
Relief under section 89
can even be carried forward if ROI is filed late Tax credit (AMT/ MAT)

Section 139(4) Belated return

-
Section 139(8A) Updated return
·

Time limit – within 24 months from the end of relevant AY

Return can be filed late at any time before -
Updated return cannot be a loss return.
3 months prior to the end of relevant -
Tax liability cannot be decreased or original Refund cannot be increased.
If original return was a loss return, the updated return must be a income return.
assessment year
-

·
If any loss return is updated, then the subsequent year return must also be updated if any loss was set off.
Completion of assessment ·
A return once updated cannot be further updated.
whichever is earlier -
If any assessment is completed or pending, updated return cannot be filed

Section 139(5) Revised return Section 140B Tax on Updated return

Return can be revised at any time before Assessee is required to pay the following:
Tax, plus interest plus fees plus additional tax
3 months prior to the end of relevant
assessment year Additional Tax -
Completion of assessment 25% of Tax & Interest– if an updated return furnished within 12 months from the end of relevant AY
50% of Tax & interest – if updated return is furnished after 12 months
whichever is earlier

www.rajatmogha.com 9690691957 Income tax - Chartbook CA|CMA|CS Page 33

CA RAJAT MOGHA
Meet your faculty
Rajat Mogha is a chartered accountant,
MBA(Finance) from IMT Ghaziabad and first class
commerce graduate from Delhi University.

He possess a rich industry experience of working in

BIG 4 accounting firms in India as well as abroad.
He has also handled international projects &
travelled extensively to US, UK, Australia & major
parts of Europe.

He took teaching as his full time profession and

become one of the most sought out teacher of
Taxation.

He firmly believes that taxation is one of the core

competency area of a CA aspirant and believes that
the best way to teach taxation to students is by
giving them practical cases and exposure rather
than teaching the law by rote.

www.rajatmogha.com