{CAAPCC:Taation Mad Easy Quick reviow of the chapter: Sections Particulars SecA) [Assessee See 25) [Assesment year See 212) [income See2 61) [Person Sec 239) 83 "Prevous Wear defined See 8081) Gross wal nome “Li: Basies of Income Tax Inceme Tar Law includes The ncome‘ax Act, 1961 famended up-to- Gres, lesion sued Vom time to te By the CBO > Judea! decons “he provisions of income-tax are conned in the Inome-tx Act 1961 which extends to the whole of India and become effective from Iot1962 ‘Annual amendments: Eyer yer» Budge is presented before the Ptanent by the Finance Minster, One of te mat moans “components ofthe Budge the France Bil which decree the ancl prosoms of he Cantal Government forthe next finan ya. The Bil contin various amendments whch are sought tobe mde inthe arse of diet and indirect ues vie he Centra [Government The France il sho mentions the ates afincme-tx and ther si Wihen the Finance Bl is approved by Both the Houses of Pariament and recivs th assent ofthe President Bacomes the Finance [Act The provisions of sue Finance Act are thereafter incorporated inthe incometax Act, Central Bc Ac, te. esides the anneal Ssrrendments sometines amendments ate brought though an amenament Ac eg. Income Tax Amendment AeY/Taxston Dmendimant ee Scheme of Taxation: Every person whose total ncome ofthe previous year exceeds the maximum amount which sot chargeable to income-ak san attertee and chargeable to income-tak inthe assessment year the rate o rates prescbed nthe Finance Act nd the Income Ta Act, 1961 forthe Felon ssestrent Yea Mowever fs oa income shal be determined on the bai of his tesientil stats ind Besides the raves which are gen in the nance Act every year, there ae certain incomes which are tuablo 3 the spel aes given Inthe income-tae Ae ise eg. shrdong-term eal guns atale @ 15%/20% and neome Kom lets cossword puzzles, ee se table @ 30% for Asessment Yeu 201213. 112: Important Definitions Person [sec 283 Berson nla ‘andl Avid Undid Fay AUF) > company > Am > An AOP oF» BOL whetherincorported or not > ‘Alecl author vary ati rie person nt fling within any of he preceding subcaues ‘sessment Year [see 28) means the period of 12 menthsconmencing on the frst dy of Api every yer. Previous Year ‘sec 3 means the previous year a defined in See, 3. According to See. 3, prvous year means the financial year Immediately preceding the arserzment year "Note: Fist previous year fora busines/proson reiy set up during the ancl yeor or foro new soure of come, stars Fem the dote of ting up ofthe busines oom the Ste the new source came ita entence, Howswersubequent previous ears shal cys bea fancial ear Previous Vest ‘Assessment Yost Income of previous years taxed in the assessment year. Sometimes income ofthe previous year is taxed in the same financial _yeorin which income seared, In ther words, previous yeor and asctament Year are some YP Shopng buns of ron resident See 172) > Assesment of priors roving India (Se. 178) > Where an essoiaton of perons or a bay of indduals or an otf jr prson formed a established for a pata event or purpose tkly to be dsslved inthe previous year in which ls fomed or establshed o immediately thera he shal tx ‘such AOP or BO! nthe some previous yearn which income earned. [Sec 1744] Assesment of persons kel owansfer property to ovoid tox Se. 175 > Discontinued buries (See. 176: Wheres business or profeston is discontinued in any previous yar, the income of the period staring rom Ist Apt the peviaus yer to the date af eacontinuanc may be ated nthe sae sevous Year Prepared by havin Pathak st me: wn facebook conan pata ‘Contact me on» 91800005359 Mal your vews bhavnpathakirocetmalicom{CAAPCC:Taation Mad Easy Thome lies [see 224) Prof & gsi Dividend Voluntary cntrbuton received by 2 tst for eligousicaritable purpose ‘Voluntary contribution received by any univrsiyotheredvestion institutions Vale of any perquisites or profit ne of sary resived by an enoyee ny sped llonance or benef received by an employes ‘Value of benefit or paruiste obtained rom company »" Bye aretorof the campony OF > Bye peson who hs substantia interes in company OR > Byarelave of the avec 8, Income derived by trade, professional arsnilar association from spec ence parfomed forte members 8. Prof onsale ofimpor icense 10, Drawback of custom or exe dy 1, Gash stistance rece or recente by any person agains exports under any scheme ofthe Government 12. Vale of any benefit or perquttes,hathar convertible into mony or not aing fom business operon 413. Any intrest slay, bonus commissan or remuneration deo or rceveda partner om ts partners business 14 Any eaptal gan chargeable uncer Sa. 45 15 Prot and gin rom any ne. Business 16 Ary winning rom lotres crossword pues, races inducing hore races, ard games and other games of any sor 17. pry sum roceves by the assesiee Ham hs employees at contabullon ta any Provident Fund or supetsnuation fund ot ‘employes sat surance or other funds wll cl the employees 18, Any sum received under Kay-nanins acy 18, Any sum recived in cash or hing under an agreement for sot ening out ary activty in Business Not sharing any knowhow, pater ight, opy right acemark ene franchisee 20, Receipt of 3 am of money without cansierton of tcp of any prope ulthoutnaceauste consideration) {Gros Total come (67) [sect ’s per Sec 1, llincome sl or purposes of coretax and computation of tral incom be dase under the fllowing heads other: > Saves Income rom House Property Profte and Gs of Busnes or Profession apical Gains Income rom Other Sources ‘Aagregoe of incomes computed under the above fv head afer oppving cling provisions ond making austen of et off nd ‘tty forma of sss is town ox Gres Teta income (STD ‘etal income (arable Hacome) “The toa eam of sn asesre x computed by Seducing fom the gros oa come all deductions permisbe unr Chapter VIA liheincome TaxAdte. deducions under Se, 80C to SOU. Tell come so compuled sabe rounded fl the nearest en ‘LB: Income Tax Rates for AY 2012-13 Individual HUF/AOP/BOI and every artificial juridical person nto 180,000 Nt ',80.000t0€5,60.000, 10% +€5}09900 to 800.000 20% ‘avove €8,00,000, 50% For resident women below the age of 0 years at any time during the previous year ‘Upto 190,000 Nt £1, 90.00 t0& 5.00000 10% 500.000 t0& 800,009, 20% ‘Above €8,00,000, 508 For resident individuals ofthe age of 60 years or more but es than 80 years at any time during the previous ‘Upto 250,000 Ne £250.00 t0&5,00000 10% 500.000 t0& 800,000, 20% ‘Above €8,00,000, son For resident individuals of the age of 60 years or more but less than 80 years at any time during the previous ‘Upto 5.00000 Nt 501000 t0€ 00,000, 10% ‘Above € 8.00000, 30% ‘Note > Nosurhargeispsjabley te sve see > _toucatn Css 2% & Secondary ans High Secondary Edvation Ces SHEC) © 1% on come shall be cares ‘Covoperative society ‘Upto 10,000 NE 0000 to 20000, 10% ‘Abowe £20,000, 30% > edaeaton ess 2918 Secondary ans High Secondary Edvaton Goss SHECY @ 18 en come salle charges Prepared by havin Pathak st me: wn facebook conan pata ‘Contact me on» 91800005359 Mal your vews bhavnpathakirocetmalicom{CAAPCC:Taation Mad Easy ay 2002-13 ‘Fim/Limited Usbilty Partnerships (ULPs)Lacal authority [30% Note > Nosuchageis peabley he above assess Kaien Cert 2% 8 Secondary ans High Secondary Eduton Cae HEC) @ 1% on neon hal be cargestle ‘Company ‘Company | Particular ‘Surcharge | Rate ‘Domestic Total income exceeds 7,000,000, 13% 30% Foreign | Total ineome exceeds €7.000,000 35% ae Note” > Suchageshall be charged ony otal ncome aed Fore > _Raicaon cess 28 Secohay and High Seconda Edtion Cass SHE 6 16 0n cone sll be cageale ‘Special rates of Income Tax ‘On Short-Term Capa ain STCG) covered unde Section 117A 1% ‘on Long-Term Capital Gan (LTC) covered unde Section 112 20% ‘on winning floes, crossword pues, card games ee (ec. 12588) 30% ‘Marginal te cee of avery company Paving 3 t income exceeding © cor, the tol tour payable a incore-tox and ‘lief surcharge on sen incom shill not oxo the total amount payble ae ncome-tax on 3 Hoa income oF 1 ore by note than the amount of income that exceeds 2 core ‘Note fothrg mentioned leary in question only then make folowing sumptions. No. Partclars i ‘Resumption Income from Solary 1 Govt/Nor-Govt ‘Assi pon-gbvt ployee 2 Gans Fimployee snot covere under Dajan ofGiatuty ACE 3. [Pension Uncommistes pension ‘Employees PF contibution Basic salary goss without deducing employee’ cantbuton 5. | DeamessAlwances is et under terms of employment 5 [DeamassP Ris under terms of employment 7. | Specfed Alowances -espendiure net given azure that fully expended for ofc purpowe \Troveling Allowances Doly Allowances, “E_[HRA cy inwhich house taken on rent | Assure 40% Far any athe pa 5. [Rest ee ezonmodaton Tretnag selene or onl Fa Ret Vl ve an aurea owned by rployerandW heal Reto ase Ret gth he tonne y erg 10, | Rent Accommodation eed ereloer andpopuston rt gen then sue it ey of mare ean 2500000, Theres ean 1 ae of iets of Snot gnen sume tobe 7 ps 12 Eiexton fc Employer hs no coneacth te shoo andi rot maintained bye 3a Mesa oly Int atherRespaland exertion to ® 15,09 Income from Howse Property 14. | ere or seoccpid proper [oan wa taken Before 9 15. Recovery of vetzed ext Covered is 254 1 Inco rom Othe Sources 36. Debestres [Norse ty ecognied stock xchange I Sef and ery ford faa 17. Busnes ones [oe ton Buns oss Ne Paras I Meaning ofreltve Income rom Salary Tr Prescribed fnge beels ember f household (Spouses, (2) Chen ac theispouses {9 Parents {@ Sonar and dependents 2 Wadia ois nd teove wave aneson a) The spouses chien, {Parents brothers and sere of the individ holy oF main apenden on the inch Profit & Gains from Business and Profession 3. | Payment te spectespesons (ec 404723) [Specified person means eatve, partner, decor or parson having substantial reso relate of any such person (Ary earveLe, spouse any brother, ster nel oscendant or descendant fs india} Income from Other sources 4 [Gis in money Sec SE) Spouse f the inviul {iy Brahe’ or sister of then fi rather or sister of spouse ofthe inival fu) Brother or sister of ether ofthe spouse or tein {1 Any nest scandant or decencane of the ined fn) tinea skeondant or descendant of spouse ofthe nial fips ofthe pteon refered tam dauses ttf) Prope by Bhavin Pathak ‘st mes wn facebookconvohovin sath ‘Contact me on» 91800005359 Mal your vews bhavnpathakirocetmalicom{CAAPCC:Taation Mad Easy ay 2002-13 Clubbing of income 5. Substamal intrest [nvi, povse brother, ser of nal acendant descendant Deductions ‘5 fe insurance Premium Sec 60) LP on Ife of himself spouse and cilven. In HUF any member of fanily 7, | Medial raurance Premium [Se 820 (2) indus, spouse, parents (whether dependent or nel, dependent aren 12) In cate of HUrin the name of any member See ODD 8 Sec DDE (nda spouses, chen, parents, bother and ster fa) incase of HUF. any mame of HUF 3 See 8 Spouse dilate of niu! Determination of residential state Chesson of income under Shes thar Sources House Propery | | Salaies || Susiness Proton | | Capfal an Aggregate ofinomre 1 -Aspiation of eubbing provion J Seafl & ery forward Provsons Deauctons fom GT te Prope by Bhavin Pathak ‘st mes wn facebookconvohovin sath ‘Contact me on» 91800005359 Mal your vews bhavnpathakirocetmalicom