Sec of Income Tax Act, 1961

SUMMARY FOR IPCC

A.Y. 2015-2016
CHAPTER I PRELIMINARY
1 to 3
1
2
3

Basics of Income tax Act

Short title, extent and commencement
Definitions
"Previous year" defined

CHAPTER II BASIS OF CHARGE

4 to 9
4
5
6
7
8
9

Charging section, Residential status and incidence of tax

Charge of income-tax
Scope of total income & Residence in India
How to compute Residential status in India
Income deemed to be received
Dividend income
Income deemed to accrue or arise in India

CHAPTER III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

10 to 13B
10
10AA
11
12
12A
12AA
13
13A
13B

Exempt Incomes
Incomes not included in total income
Special provisions in respect of newly established Units in SEZ
Income from property held for charitable or religious purposes
Income of trusts or institutions from contributions
Conditions for applicability of sections 11 and 12
Procedure for registration
Section 11 not to apply in certain cases
Special provisions relating to incomes of political parties
Voluntary contributions received by electoral trust

CHAPTER IV COMPUTATION OF TOTAL INCOME

14
14A

Heads of income
Expense incurred in relation to income not includible in total income

A. SALARIES
15-17
15
16
17

Income from Salaries

Charging section for Salaries
Deductions from salaries
Salary, perquisite and profits in lieu of salary defined

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Sec of Income Tax Act, 1961

B. INCOME FROM HOUSE PROPERTY
22-27
22
23
24
25
25A
25AA
25B
26
27

Income from House Property (HP)

Charging section for Income from house property
Annual value how determined
Deductions from income from house property
Amounts not deductible from income from house property
Special provision for cases where unrealised rent allowed as
deduction is realised subsequently
Unrealised rent received subsequently to be charged to income-tax
Special provision for arrears of rent received
Property owned by co-owners
Owner of house property, annual charge, etc., defined

C. PROFITS AND GAINS FROM BUSINESS OR PROFESSION

28 to 44DB
28
29
30
31
32
32(2)(iia)
32(2)
32AC
33AB
33ABA
35
35(1)(i)
35(1)(ii)
35(1)(iia)
35(1)(iii)
35(1)(iv)
35(2AA)
35(2AB)
35ABB
35AC
35AD
35CCA
35CCC
35CCD
35D
35DD
35DDA
35E
36
37
38
40
40(a)(i)

Profits and gains of business or profession (PGBP)

Charging section for Profits and gains of business or profession
Income from profits & gains of business or profession how computed
Rent, rates, taxes, repairs and insurance for buildings
Repairs and insurance of machinery, plant and furniture
Depreciation
Additional Depreciation
Unabsorbed Depreciation
Investment Allowance
Tea, Coffee & Rubber development account
Site Restoration Fund
Expenditure on scientific research
Revenue Expenditure on SR related to the business of the assessee
Contribution to approved outsiders for SR
Contribution to an approved Indian Co. having main objective SR
Contri to apprv outsiders for Social sciences & statistical Research
Capital Expenditure on SR related to the business of the assessee
Contribution to National Laboratory, IIT pr specified persons for
carrying out the approved SR programme
Expense by a Co. engaged in manufacture of any article or thing
(not being specified in 11th Schedule) on SR (Excl expd on land or
bldg) on in-house R & D facility as approved by prescribed authority
Expense for obtaining licence to operate telecommunication services
Expenditure on eligible projects or schemes
Deduction in respect of expenditure on specified business
Payment to association/institute carrying rural develop programmes
Expenditure on agricultural extension project
Expenditure on skill development project
Amortisation of certain preliminary expenses
Amortisation of expenditure in case of amalgamation or demerger
Amortisation of expenditure incurred under VRS.
Deduction for expenditure on prospecting, etc., for certain minerals
Other deductions
General Deductions
Building, etc., partly used for business or not exclusively so used
Amounts not deductible
TDS disallowances for payments other than salary to Non-Residents.

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Sec of Income Tax Act, 1961

40(a)(ia)
40(a)(iib)
40(a)(iii)
40(a)(v)
40A
40A(2)
40A(3)
40A(7)
40A(9)
41
42
43
43A
43B
43C
43CA
44AA
44AB
44AD
44AE

TDS disallowances for specified payments to Residents.

TDS disallowance for royalty licence fees for state Govt undertakings
TDS disallowances for salary paid to Non-Residents.
Disallowances for tax on non-monetary perquisites paid by employer
Expenses or payments not deductible in certain circumstances
Disallowances for expenditure in respect of which payment has been
or is to be made to specified person
Disallowances for expense in respect of which payment exceeding
Rs.20000/- is made in single day to a single person for a single bill.
Disallowance for provision for unapproved Gratuity Fund.
Disallowance for contributions to Non-statutory Funds
Deemed Profits chargeable to tax.
Deduction in case of business for prospecting, etc., for mineral oil
Definitions of certain terms relevant to income from PGBP
Provisions consequential to changes in rate of exchange of currency
Certain deductions to be only on actual payment
Spcl Provision for computation of cost of acquisition of certain assets
Sale consideration on transfer of immovable property.
Maintenance of books by persons carrying on profession or business
Audit of accounts of persons carrying on business or profession
Provision for computing profits of business on presumptive basis
Income of business of plying, hiring or leasing goods carriages

D. CAPITAL GAINS
45 to 55A
45
46
46A
47
47A
48
49
50
50A
50B
50C
50D
51
54
54B
54D
54EC
54F
54G
54GA
54GB
54H
55
55A

Income from Capital Gains (CG)

Charging section for Capital gains
CG on distribution of assets by companies in liquidation
CG on purchase by Co. of its own shares or other specified securities
Transactions not regarded as transfer
Withdrawal of exemption in certain cases
Mode of computation
Cost with reference to certain modes of acquisition
Special provision for computation of CG in case of depreciable assets
Special provision for cost of acquisition in case of depreciable asset
Special provision for computation of CG in case of slump sale
Special provision for full value of consideration in certain cases
FMV deemed to be full value of consideration in certain cases
Advance money received
Exemption of CG on sale of property used for residence
Exemption of CG on transfer of land used for agricultural purposes.
Exemption of CG on compulsory acquisition of lands & buildings.
Exemption of Capital gain on investment in certain bonds
Exemption of CG on transfer of certain capital assets in case of
investment in Residential House Property.
Exemption of CG on shifting of industrial undertaking from urban
area to Rural area
Exemption of CG on shifting of industrial undertaking from urban
area to SEZ
Exemption of CG on transfer of residential property.
Extension of time for acquiring new asset or depositing or investing
the amount of CG.
Meaning of adjusted, cost of improvement & cost of acquisition
Reference to Valuation Officer.

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Sec of Income Tax Act, 1961

E. INCOME FROM OTHER SOURCES
56 to 59
56
57
58
59

Income from Other Sources

Income from other sources
Deductions
Amounts not deductible
Profits chargeable to tax

CHAPTER V INCOME OF OTHER PERSONS INCLUDED IN ASSESSEES TOTAL

INCOME
60 to 65
60
61
62
63
64
65

Clubbing of Income
Transfer of income where there is no transfer of assets
Revocable transfer of assets
Transfer irrevocable for a specified period
Transfer and revocable transfer defined
Income of individual to include income of spouse, minor child, etc.
Liability of person in respect of income included in income of another
person

CHAPTER VI AGGREGATION OF INCOME & SET OFF OR C/F OF LOSS

A. AGGREGATION OF INCOME
66 to 69
66
67A
68
69
69A
69B
69C
69D

Total income & tax treatment of undisclosed sources of Inc.

Total income
Method of computing a members share in income of AOP or BOI
Cash credits
Unexplained investments
Unexplained money, etc.
Amount of investments, etc., not fully disclosed in books of account
Unexplained expenditure, etc.
Amount borrowed or repaid on hundi

B. SET OFF OR CARRY FORWARD AND SET OFF

70 to 80
70
71
71B
72
72A
72AA
72AB
73
73A
74
74A

Set off or carry forward and set off of losses

Set off of loss of one source against income from another source
under same head of income
Set off of loss from one head against income from another
Carry forward and set off of loss from house property
Carry forward and set off of business losses
C/f & set off of accumulated loss & unabsorbed depreciation in
amalgamation or demerger, etc.
C/f & set off of accumulated loss & unabsorbed depre in scheme of
amalgamation of banking company in certain cases
C/f & set off of accumulated loss & unabsorbed depre in business
reorganisation of co-op banks
Losses in speculation business
Carry forward and set off of losses by specified business
Losses under the head Capital gains
Losses from specified sources falling under head "Other sources"

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Sec of Income Tax Act, 1961

75
78
79
80

Losses of firms
C/f & set off of loss in case of change in constitution of firm or on
succession.
Carry forward and set off of losses in the case of certain companies
Submission of return for losses

CHAPTER VIA DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME

A. GENERAL
80A
80AB
80AC
80B

Deductions to be made in computing total income

Deductions to be made with reference to income included in the GTI
Deduction not to be allowed unless return furnished
Definitions

B. DEDUCTIONS IN RESPECT OF CERTAIN PAYMENTS

80C
80CCC
80CCD
80CCE
80CCG
80D
80DD
80DDB
80E
80EE
80G
80GG
80GGA
80GGB
80GGC

Deduction in respect of LIP, deferred annuity, contributions to PF,

subscription to certain equity shares or debentures, etc.
Deduction in respect of contribution to certain pension funds
Deduction for contribution to pension scheme of Central Govt
Limit on deductions under sections 80C, 80CCC and 80CCD
Deduction in respect of investment under an equity savings scheme
Deduction in respect of medical insurance premia
Deduction in respect of maintenance including medical treatment of
a disabled dependent relative.
Deduction in respect of medical treatment of specified diseases of a
dependent relative.
Deduction in respect of interest on loan taken for higher education
Deduction in respect of interest on loan taken for residential HP.
Deduction in respect of donations to certain funds, institutions etc.
Deduction in respect of rents paid
Deduction in respect of certain donation for SR or rural development
Deduction in respect of contribution given by Co. to political parties
Deduction of contribution given by any person to political parties

C. DEDUCTIONS IN RESPECT OF CERTAIN INCOMES

80IA
80IAB
80IB
80IC
80ID
80IE
80JJA
80JJAA

Deductions in respect of profits & gains from industrial undertakings

or enterprises engaged in infrastructure development, etc.
Deductions in respect of profits & gains by an undertaking or
enterprise engaged in development of Special Economic Zone
Deduction in respect of profits & gains from certain industrial
undertakings other than infrastructure development undertakings
Special provisions in respect of certain undertakings or enterprises
in certain special category States
Deduction in respect of profits and gains from business of hotels and
convention centres in specified area
Special provisions in respect of certain undertakings in NorthEastern States
Deduction in respect of profits and gains from business of collecting
and processing of bio-degradable waste
Deduction in respect of employment of new workmen

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Sec of Income Tax Act, 1961

80LA
80P
80QQB
80RRB
OTHERS
80U

Deduction in respect of certain incomes of Offshore Banking Units

and International Financial Services Centre
Deduction in respect of income of co-operative societies
Deduction in respect of royalty income, etc., of authors of certain
books other than text books
Deduction in respect of royalty on Patents

Deduction in case of a person with disability

CHAPTER XIV PROCEDURE FOR ASSESSMENT

139
139A
139B
139C
139D
140
140A
142
142A
143
144
144A
144BA
144C
145
145A
147
148
149
150
151
152
153
153A
153B
153C
153D
154
155
156
157
158

Return of income
Permanent account number
Scheme for submission of returns through Tax Return Preparers
Power of Board to dispense with furnishing documents with return
Filing of return in electronic form
Return by whom to be signed
Self-assessment
Inquiry before assessment
Estimate by Valuation Officer in certain cases
Assessment
Best judgment assessment
Power of Joint Commissioner to issue directions in certain cases
Reference to Commissioner in certain cases
Reference to dispute resolution panel
Method of accounting
Method of accounting in certain cases
Income escaping assessment
Issue of notice where income has escaped assessment
Time limit for notice
Cases where assessment is in pursuance of an order on appeal, etc.
Sanction for issue of notice
Other provisions
Time limit for completion of assessments and reassessments
Assessment in case of search or requisition
Time limit for completion of assessment under section 153A
Assessment of income of any other person
Prior approval necessary for assessment in case of search requisition
Rectification of mistake
Other amendments
Notice of demand
Intimation of loss
Intimation of assessment of firm

CHAPTER XV LIABILITY IN SPECIAL CASES

172
173
174
174A
175

Shipping business of non-residents

Recovery of tax in respect of non-resident from his assets
Assessment of persons leaving India
Assessment of AOP, BOI or AJP formed for specified purpose
Assessment of persons likely to transfer property to avoid tax

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Sec of Income Tax Act, 1961

176
177
178

Discontinued business
Association dissolved or business discontinued
Company in liquidation

CHAPTER XVI SPECIAL PROVISIONS APPLICABLE TO FIRMS

184
185
187
188
188A
189
189A

Assessment as a firm
Assessment when section 184 not complied with
Change in constitution of a firm
Succession of one firm by another firm
Joint and several liability of partners for tax payable by firm
Firm dissolved or business discontinued
Provisions applicable to past assessments of firms

CHAPTER XVII COLLECTION AND RECOVERY OF TAX

A. GENERAL
190
191

Deduction at source and advance payment

Direct payment

B. DEDUCTION AT SOURCE
192
193
194
194A
194B
194BB
194C
194D
194E
194EE
194F
194G
194H
194I
194IA
194J
194K
194L
194LA
194LB
196
197
197A
198
199
200
200A
201

Salary
Interest on securities
Dividends
Interest other than Interest on securities
Winnings from lottery or crossword puzzle
Winnings from horse race
Payments to contractors and sub-contractors
Insurance commission
Payments to non-resident sportsmen or sports associations
Payments in respect of deposits under National Savings Scheme, etc
Payments on account of repurchase of units by Mutual Fund or UTI
Commission, etc., on the sale of lottery tickets
Commission or brokerage
Rent
Payment on transfer of immovable property other than agri land
Fees for professional or technical services
Income in respect of units
Payment of compensation on acquisition of capital asset
Payment of compensation on acquisition of immovable property
Income by way of interest from infrastructure debt fund
Interest or dividend or other sums payable to Government, Reserve
Bank or certain corporations
Certificate for deduction at lower rate
No deduction to be made in certain cases
Tax deducted is income received
Credit for tax deducted
Duty of person deducting tax
Processing of statements of tax deducted at source
Consequences of failure to deduct or pay

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Sec of Income Tax Act, 1961

202
203
203A
203AA
204
205
206
206A
206AA

Deduction only one mode of recovery

Certificate for tax deducted
Tax deduction and collection account number
Furnishing of statement of tax deducted, etc.
Meaning of person responsible for paying
Bar against direct demand on assessee
Persons deducting tax to furnish prescribed returns
Furnishing of quarterly return in respect of payment of interest to
residents without deduction of tax
Requirement to furnish Permanent Account Number

BB. COLLECTION AT SOURCE

Profits from business of trading in alcoholic liquor, forest produce,
206C
scrap etc
206CA
Tax collection account number
C. ADVANCE PAYMENT OF TAX
207
Liability for payment of advance tax
208
Conditions of liability to pay advance tax
209
Computation of advance tax
Payment of advance tax by the assessee of his own accord or in
210
pursuance of order of Assessing Officer
211
Instalments of advance tax and due dates
214
Interest payable by Government
215
Interest payable by assessee
216
Interest payable by assessee in case of underestimate, etc.
217
Interest payable by assessee when no estimate made
218
When assessee deemed to be in default
219
Credit for advance tax
D. INTEREST CHARGEABLE IN CERTAIN CASES
234A
Interest for defaults in furnishing return of income
234B
Interest for defaults in payment of advance tax
234C
Interest for deferment of advance tax
234D
Interest on excess refund
234E
Fee for defaults in furnishing statements
CHAPTER XXIII MISCELLENEOUS
285BA
Obligation to furnish annual information return
288A
Rounding off of income
288B
Rounding off amount payable and refund due

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