SYLLABUS

B.Com., Semester – IV
Income Tax

Unit-I: Introduction: Income Tax Act-1961 - Basic Concepts: Income, Person, Assessee -
Assessment Year, Previous Year, Rates of Tax, Agricultural Income, Residential Status of
Individual -Incidence of Tax - Incomes Exempt from Tax (theory only).

Unit-II: Income from Salaries: Basis of Charge, Tax Treatment of Different Types of
Salaries Allowances, Perquisites, Profits in Lieu of Salary, Deductions from Salary
Income, Computation of Salary Income (including problems).

Unit-Ill: Income from House Property and Profits and Gains from Business: Annual Value,
Let-out/Self-Occupied/Deemed to be Let-out house -Deductions from Annual Value -
Computation of Income from House Property
Definition of Business and Profession - Procedure for Computation of Income from
Business - Revenue and Capital Nature of Incomes and Expenses - Allowable Expenses -
Expenses Expressly Disallowed - Computation (including problems).

Unit-IV: Income from Capital Gains - Income from Other Sources: Meaning of Capital
Asset - Types - Procedure for Computation of Long-term and Short-term Capital
Gains/Losses Meaning of Other Sources - General Incomes - Specific Incomes -
Computation (including problems).

Unit-V: Computation of Total Income of an Individual: Deductions under Section 80 -

Computation of Total Income (Simple problems).
 RATES OF TAX FOR ASSESSMENT YEAR 2021-22
I. For any other resident Individual (Who is below 60 years), any Non-Resident
Individual, every HUF/AOP BOI/Artificial Juridical Person:

Net Income Range Income Tax Rates

Upto ₹ 2,50,000 Nil
₹ 2,50,000 – ₹ 5,00,000 5%
₹ 5,00,000 – ₹ 10,00,000 20%
Above ₹ 10,00,000 30%

II. For a resident senior citizen (who is 60 years or more at any time during the previous
year but less than 80 years on the last day of the Previous Year).

Net Income Range Income Tax Rates

Upto ₹ 3,00,000 Nil
₹ 3,00,000 – ₹ 5,00,000 5%
₹ 5,00,000 – ₹ 10,00,000 20%
Above ₹ 10,00,000 30%

III. For a resident Super senior citizen (who is 80 years or more at any time during the previous
year)

Net Income Range Income Tax Rates

Upto ₹ 5,00,000 Nil
₹ 5,00,000 – ₹ 10,00,000 20%
Above ₹ 10,00,000 30%
Surcharge:

Net Income Range Surcharge Rates

₹ 50 lakhs - ₹ 1 Crore 10%

₹ 1 Crore - ₹ 2 Crore 15%
₹ 2 Crore - ₹ 5 Crore 25%
Above ₹ 5 Crore 37%
Health and Education Cess (HEC): 4% of Total Income Tax and Surcharge.

Computation of Net Income

Assessee: Assessment Year:
Status: Previous Year:
Particulars ₹ ₹
Income Under the Head
Salary XXX
Income Under the Head
House Property XXX
Income Under the Head
Business or Profession XXX
Income Under the Head
Capital Gains XXX
Income Under the Head
Other Sources XXX
Gross Total Income XXX
Less: Deductions U/S 80 C – 80 U XXX
Net Income XXX

Note: It is to be understood that deduction:

 80 C: Maximum of actual savings or ₹ 1,50,000, whichever is least
 80 D to 80 U is addition to ₹ 1,50,000 u/s 80C