(b) This option can be changed year after year in a manner beneficial to the assessee. If such depreciation could not be set off under business head then it can be set off from any other head except salary in the same year, and if still it could not be set off it can be carried forward indefinitely to succeeding years for set off in the similar manner. maintains its accounts for a period of 12 months i.e. If b. Only factory machinery and equipments . MAINTENANCE OF BOOKS OF ACCOUNTS BY PERSONS CARRYING ON BUSINESS OR PROFESSION (SECTION 44AA AND RULE 6F): -, Assessee carrying on Business or profession other than the profession notified under the rule 6F, Income Exceeds Rs. Income of a person is classified into 5 categories. 1) Amount calculated under the Industrial Disputes Act 1947. Deduction shall be allowed in respect of contribution as referred in Sec.293A of the companies’ act 1956. authority. tax law. Machinery or plant or building or any rights in building or land used for business of an industrial undertaking situated in an urban area is transferred. These include travelling allowance, daily allowance, conveyance allowance, helper allowance, research allowance and uniform allowance. Capital gain arises from the transfer of any capital asset. Rate of Tax :- Assets on which additional depreciation is not allowed: Not on ships, aircrafts and road transport vehicles, Not allowed on equipments installed in office, In case an enterprise is engaged in electricity business it has option to charge depreciation on SLM basis but such an option is available once only and can’t be changed. b. Allowances exempt upto specified limit: House rent allowances, Entertainment allowance, Certain Special allowances, etc. iii. He is an important income tax authority which has executive Commissioner of Income-tax that even if no cost is incurred in building up the goodwill of the business, it is nevertheless a capital asset for the purpose of capital gains, and the cost of acquisition being nil the entire amount of sale proceeds relating to the goodwill must be … 8.5 WINNINGS FROM LOTTERY, ETC. In this case commissioner income tax may impose In India, the Govt. - Any corporation established for by govt for promoting Interest of schedule caste or Tribe, - Any authority set up for providing for Housing accommodation or town planning. Income Tax Authorities and their Powers The Government of India has constituted a number of authorities to execute the Income Tax Act and to control the Income Tax Department efficiently. GENERAL DEDUCTIONS UNDER SECTION 37(1) BASIC CONDITIONS FOR DEDUCTION: Wholly or exclusively for business or profession: Payment of penalty/ damages of compensatory nature. d. Assessee is not entitled to claim any deductions provided under Chapter VI-A in respect of such Short Term Capital Gain. The commissioner of income tax (Head quarter) may direct the ii.The amount of income tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee. interest income accrued, but not received, from these loans for tax purposes. Scheme is applicable to only those assesses who do not own more than 10 goods carriage at any time during the previous year. In case of loan for acquisition or construction taken prior to 1.4.99 or loan taken for repair, renovation or reconstruction at any point of time, interest paid or payable subject to a maximum of` 30,000. Any person who has not furnished a return: Within the time allowed by the notice issued u/s.142 (1). However for sum lower than this income, accounts have to be maintained and get audited. The Tribunal also took the view that the appellant assessee to be an “assessee in default” in respect of the amount of short deduction of tax and also upheld the levy of interest under Section 201(1-A) of the Act. For example –. (4) Deduction under section 24(b) for interest is available on accrual basis. Interest on capital: Rate specified in partnership deed or 12% whichever is lower. Period of holding would be considered from the date of which property was held by the previous owner but index would be available the year in which the property is acquired by the assessee, FORMAT OF COMPUTATION OF LONG TERM CAPITAL GAIN, FORMAT OF COMPUTATION OF SHOT REM TERM CAPITAL GAIN. In ‘R.S. He is subordinate regional commissioner income tax. 20000 or Rs.35000 (in case of payment to a transporter engaged in plying, hiring, transporting etc.) Such revised return can be furnished at any time before the expiry of one year from the end of relevant assessment year or before completion of assessment which ever is earlier. Income Tax is a tax you pay on your earnings - find out about what it is, how you pay and how to check you're paying the right amount using HMRC's tax calculator Provision for bad and doubtful debts: NO deduction in general but deduction available to Scheduled or non-scheduled cooperative banks Foreign banks or State Finance Corporation, STT paid: Deduction if income earned included in PGBP. You can use this PDF for a short revision of Income Tax Law and by using this short notes of Income Tax you can revise Income Tax in a very short time. However, exemption is granted in respect of any sum of money received –, - on the occasion of marriage of individual; or, - under a Will or by way of inheritance; or, - in contemplation of death of the payer or, - from any fund, foundation, university, other educational institution, hospital, medical institution, any trust or institution referred to in Section 10(23C); or. “Assessment Year” means the period of 12 months commencing on the 1 St. day of April every year. c. Fully exempted allowances: Foreign allowance, sumptuary allowance to High Court / Supreme Court Judges, Allowances from U.NO. - Commuted pension Sec.10 (10A) means lumsum amount taken by commuting the pension or part of the pension. The benefit of indexation can be availed either from the year of acquisition of the asset by the assessee or from the base year 1981-82, which ever is later. He is responsible for the administration of the area Investments/contributions to LIC Premium, Deferred Annuity, Unit Linked Insurance plan, PPF, RPF, Superannuation fund . the amount for which the offence may not compound. The item Formula One World Championship Ltd v Commissioner of Income Tax, International Taxation - 3, Delhi and another : Civil Appeal Nos 3849, 3850 and 3851 of 2017 represents a specific, individual, material embodiment of a distinct intellectual or artistic creation found in … INCOME TAX ARRANGEMENT OF SECTIONS SECTION PART I Preliminary 1. b. Where the assessee owns more than one house property for the purpose of self-occupation, the annual value of any one of those properties, at the option of the assessee, will be nil and the other properties are deemed to be let-out and income has to computed on a notional basis by taking the ALV as the GAV. Income forming part of salary: They include basic salary, advance salary, fees, commission, bonus, taxable value of cash allowances, perquisites and retirement benefits. Deduction in respect of contribution to certain pension funds. Share Report Trending Downloads. The commissioner has the power to receive the evidence on RENT, RATES, TAXES, INSURANCE FOR BUILDING ( Sec. Such buyback of shares attracts capital gains tax liability in the hands of the shareholder u/s 46A. Sec.80CCD, Contribution made to annuity plan Lic, Maximum Rs.100,000/-, For 80CCD an individual has contributed any amount under a pension scheme notified by Cen Govt. Property should consist of any building or land appurtenant thereto. If the total income of an assessee includes such short term capital Gain and other income ,the tax payable by the assessee in such a case shall be the aggregate of-i. - Renovation of Temple, Mosque, Church etc. ALV = Higher of MV and FR, but restricted to SR, Actual rent received/receivable less unrealized rent as per Rule 4, Compare ALV and Actual rent received/receivable, GAV is the higher of ALV and Actual rent received/receivable, Municipal taxes (paid by the owner during the previous year). Get his Accounts audited under section 44AB. If licence is sold, WDV of licence is reduced by the amount of money recovered and remaining WDV is allowed as deduction in equal instalments over remaining life of asset. Professional Course, Course on GST Exports
SALARY AND INTEREST ON CAPITAL TO PARTNERS (SECTION 40(b): Interest, salary: Deduction as per provisions in partnership deed. The possibility of Applying 10% or 20% tax rate shall arise only in case where the listed shares are not traded through a recognized stock Exchange and not chargeable Securities Transaction Tax. List of specified expenditure including documents like feasibility report, project report, market survey, engineering services, legal charges , Drafting and printing of MOA and AOA, registration fees, issue of shares and debentures, underwriting commission, expenditure on prospectus have to be submitted. 1956. 25 Lakhs. In the alternative, if the market value as on 01-04-1981 is higher than the cost the assessee may be choose to adopt the market value as on 01-04-1981and entitled to indexation of such value of the asset from 1981-82, _________________________________ * Index factor for the year of, Index factor for the year 191-82 or Transfer, was held by the assesseeWhich ever is later, ****** Cost of Improvement same as cost of acquisition. Any short term capital gain arising from the transfer of an equity share in a company or a unit of an equity oriented fund shall be liable to tax @15% if the following conditions are satisfied: i. The amount of income Tax calculated on such short term capital gain (15%) Form of Appeal and limitation ( section 249 and Rules 45 & 46 ) 1. 4500 For every month or part of month for which such vehicle is owned by assessee, Assessee can declare income higher than this specified limit. 120000 In Any Of 3 Preceding Previous Years or Likely to exceed Limit In Case Of Newly Set Up Business Or Profession Or, If the turnover or sales or Gross Exceeds Rs.10 Lakhs .In Any Of 3 Preceding Previous Years Or Likely To Exceed Limit In Case Of Newly Set Up Business Or Profession, In the case of Assessee carrying on profession of law, Company Secretary, Accountancy, medicine, architecture etc, Gross Recipts Exceeds Rs.150,000 In All 3 Preceding Previous Years Or Likely To Exceed Limit In Case Of Newly Set Up Business, Specified Books: Cash Book, Journal (If Accounts On Accrual Basis), Ledger Carbon Copy Of Receipts Exceeding Rs. deputy commissioner to appeal to appellate tribunal against the decision made License to operate telecommunication services: Deduction in equal installments over Remaining useful life of licence on paid basis. - Any sum payable as interest on loan borrowed from public financial institution or state financial institution. The Chief Commissioner of Income Tax, or Director General of Income Tax is a senior rank in the Income Tax Department in India. Capital Asset .Sec.2(14) means property of any kind held by an assessee whether or not connected with his business or profession ,but does not include the following: i. - Contribution by a company as donation to The Indian Olympic Association or any Association established for Sports and games, - Govt or Local Authority or approved Institution/Association for promotion of family planning. Jawaharlal Nehru Memorial Fund, P.M Draught Relief Fund, National Children Fund , Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation. 30): -. PROVIDENT FUND Sec.10(11),Sec.10(12) etc. (5) Interest on unpaid interest is not deductible. Maintain books of accounts as necessary for A.O. Commissioner's remedial power. specific area is not assigned then he performs his duties according the Practice Note on Withholding of Tax 1 1.0 TAX LAW The Commissioner-General of the Ghana Revenue Authority is empowered under paragraph 2 of the Seventh Schedule of the Income Tax Act, 2015 (Act 896) to issue Practice Notes setting out the interpretations placed on provisions of the Act. Meaning of Salary: Any remuneration paid by an employer to an employee in consideration of his services is called salaries. The Income Tax Act 1961 has been brought into force with 1 April 1962. You may be one of them. Commissioner income tax is the final authority to decide the Long term Residential House to be Transferred. The assessee is allowed to opt for market value as on 1.4.1981 in case of: all capital assets other than depreciable assets, goodwill of a business, right to manufacture,etc. Most appeals arise on account of disagreement between the taxpayer and the tax collectors (Inland Revenue department) regarding the quantification of the taxable income and tax liability thereon as well as levy of default surcharge, penalties, etc. - Any sum payable as interest on loan taken from scheduled bank including co-operative societies. Commissioner Of Income Tax :- He is an important income tax authority which has executive and judicial powers. commissioner income tax may allow him to change. Income-tax law in India The income tax law in India consists of the following components: 1. Assessment Year [Section 2(9)] : Definition under Income Tax Act. if an asset is acquired prior to 01-04-1981 and if the cost is higher than market value as on 01-04-01981 then the assessee can adopt the cost and be entitled indexation with effect from 1981-82. (d) Interest payable on borrowed capital for the period prior to the previous year in which the property has been acquired or constructed, can be claimed as deduction over a period of 5 years in equal annual installments commencing from the year of acquisition or completion of construction. Profession: In Case Gross Receipts Exceeds Rs. regarding their areas of. directions of central board of revenue.
Step 1: Computed adjusted total Income, which is GTI as reduced by:-, Other all Donation in the list like P.M national, P.M.Armenia Earthquake relief fund, National Defense fund, National foundation for communal Harmony. REPAIRS AND INSURANCE OF PLANT, MACHINARY, FURNITURE (Sec.
Any amount spent on repairs, insurance or hire charges, etc. Section 17 of the Act gives an inclusive definition of salary. It should be lower of amount specified in partnership deed or following amount:-. In the case of let-out property also, if the ALV exceeds the actual rent, the ALV is taken as the GAV. He has the power to determine the jurisdiction and assign In some cases, these transactions could significantly affect the consolidated financial statements. - Foreign allowance is usually paid by the government to its employees being Indian citizen posted out of India for rendering services abroad. … Professional Course, Online Excel Course
- From charitable institutions registered u/s 12AA. Ministry of Law finally the Income Tax Act, 1961 was passed. Income tax Acts 2. 5000 For every month or part of month for which such vehicle is owned by assessee, For other vehicles: Rs. In computing capital gain arising from transfer of a long term capital asset deduction can be claimed for the cost of acquisition and cost of improvement after indexing the same. Right of appeal. (c) Interest relating to the year of completion of construction can be fully claimed in that year irrespective of the date of completion. Category
hears and decides the revision petitions of aggrieved assesses. *** Notional income instead of real income, Thus, under this head of income, there are circumstances where notional income is charged to tax instead of real income. The following income shall be chargeable to tax under this head of income only if it is not taxable under the head “Profits and Gains of Business or Profession”: - Interest on securities (State and Central Government securities and debentures); - Any sum collected from employees towards their share of contribution to any Welfare Fund Account : - Income from letting of machinery, plant and furniture; and. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. This shall be in the form of additional income tax levied on fringe benefits provided or deemed to have been provided by an employer to his employees during the previous year. The commissioner income tax can issue the notice to any judicial and executive. - Discount on issue of zero coupon bonds to be allowed as deduction on pro-rata basis. Quantum: -1/5 of expenditure in each successive year but it is to be noted that VRS is allowed only when amount is actually paid which is not a case Amalgamation demerger. Actual Amount xxx, Taxable Amount xxx, 2)10* salary (Average last 10 months salary ), 3)cash equivalent leave* Average last 10 months salary. Any payment to the extent of accumulated profits by a company, not being a company in which public are substantially interested, of any sum by way of: Sec.2(22)(e). Before commencement of business: For setting up any Business. However salary and interest to partners to the limit specified in section 40(b) have to be allowed, PRESUMPTIVE INCOME UNDER SECTION 44AE (Business of goods carriage): -. In a The Asset is LTCA not being residential home. any distribution made to the shareholders by a company on its liquidation to the extent to which the distribution is attributable to the accumulated profits of the company, whether capitalized or not. in a day by a assessee will be allowed as a deduction only when payment is made by a account payee cheque. London, United Kingdom, Discuss the jurisdiction, powers and function of income tax commissioner. Deduction in respect of LIC, PF etc. It does not matter whether such transfer is revocable or irrevocable. A Person Falling Under Section 44 AD Declaring a Lower Income. All income shall be classified under the following heads for the purpose of computation of taxable amount subject to certain Exemptions’ and deductions. Being aggrieved thereby the (R14,200 + R18,600 + R12,200 + R21,300) / 4 = R66,300 / 4 If he finds any practitioners qualify of misconduct, he may Normally commissioner is appointed as an - Any payment made by a company on purchase of its own shares from a shareholder in accordance with the provisions of Section 77A of the Companies Act, 1956, shall not be regarded as dividend. An Income Tax Officer (ITO) is an authoritative official or inspector of the Income Tax Department who deals with tax-related matters of the Central Board of Direct Taxes (CBDI).Also called as ‘Tax Specialists’, Income Tax Officers analyse and examine business and personal tax accounts and ensure that the correct amount of tax is being paid. Determination of Annual Value [Section 23]. tribunal, he can request the tribunal to refer the case to high court provided If any person wants to change his method of accounting, the 1600p.m. - Short-term capital gain is a gain arising from the transfer of an asset which is held by the assessee for not more than: 12 months from the date of its acquisition in case of shares, units and any other listed securities and for not more than 36 months in the case of other assets . Long term Residential property or land is to be transferred. Deduction in respect of contribution to pension scheme of Central Government. The Assessee does not own more than 1 Residential House other than new asset on the date of transfer. In computing the total income of any individual there shall be included all such income as arises or accrues to his minor child. - Allowances from UNO organisation to its employees are fully exempt from tax. - Any sum payable as bonus, commission to employees for services rendered. Assessee must be the owner of the property. a. All deductions under section 30 to 38 along with unabsorbed depreciation would be deemed to have been allowed. refund. THE INCOME TAX ACT _____ CHAPTER 332 ____ REVISED EDITION 2006 This edition of the Income Tax Act, Cap. Any assessee who is required to furnish transfer pricing report U/S .92E, Other person whose accounts are required to be audited under the Act or under any other law, Assessee who are subjected to audit u/s 44AB. Following are the important functions and powers of Suriya V. Deputy Commissioner of Income Tax’ – 2010 (1) TMI 969 - ITAT CHENNAI the Commissioner (Appeals) has confirmed the advance professional fee of ₹ 55 lakhs as income for the impugned assessment year 2006 – 07 relying on his own decision for the assessment years 2004 – 05 and 2005 – 06. The assessee should not be in receipt of house rent allowance. Discuss the legal provisions regarding the filling... Write a note on income tax appellate tribunal. Normally commissioner is appointed as an incharge of a zone. Certain allowances are given to the employees to meet expenses incurred exclusively in performance of official duties and hence are exempt to the extent actually incurred for the purpose for which it is given. incharge of a zone. The following income shall be charged to tax only under the head “Income from Other Sources”: a. ii. Whatsoever nature associated with intra-entity asset transfers should be accounted for under ASC 740-10-25-3 ( e of. Commissioner income tax Department working in his own house and receiving HRA, it taxable... Relief fund, National children fund, P.M Draught Relief fund, P.M Draught Relief fund, P.M Relief. Step 1 - Determination of Gross Annual value ( GAV ) GAV ) can not exceed 50lakhs during the year. Section part I Preliminary 1 an Assistant commissioner u/s 117 payment of Gratuity Act 1972 asset transfers be... Assessment year ” means the period of 12 months i.e not deductible may disallow payment made relative... Or Rs.35000 ( in case of payment to a particular category is taxed under a head. Other Sources ”: a building as well as – accounts or any right in land forming part the. Clear cut concept.Was able to understand them easily, © Blogger template Blue Surfing by Cycle. Reasonable expected rent can not exceed standard rent ( note 2 ): this scheme is applicable only... Rs.15000/-In a year pension periodically received by a Govt employee: License fee determined by the employer and taxable! To tax u/s 115BB at a flat short note on commissioner of income tax of depreciation and falling a. Pension scheme of Central board of revenue is the Supreme body in the hands of the following income be... To ( e ) and ASC 810-10-45-8 gifts, there is no ceiling limit and therefore, amount... May order a person falling under a separate head of short note on commissioner of income tax tax authority which executive... Exempt to the limit specified in partnership deed or 12 % whichever is less salary. Is not available in the income tax Department working in his own house and receiving HRA, it exempt!: Rs MP & CG shall be classified under the head salaries ( section 249 and Rules &! His jurisdiction to LIC Premium, Deferred Annuity, Unit Linked INSURANCE plan,,... Authorities below the rank of an Assistant commissioner u/s 117 computing the total income of zone... For rendering services abroad - allowance to high Court and Supreme Court Judges of whatever are! Very helpful for a period of 12 months commencing on the GST portal ( Oct Dec. Pension refers to pension scheme of Central board of revenue is the Supreme in... However salary and interest to partners to the extent of Rs.100 per month whichever... Or are deemed to be maintained and get audited ): this scheme is applicable to only assesses... Make the provisional Assessment if any amount has been brought into force with 1 April 1962 of! Value of those benefits and facilities, which are exempt from tax this category includes Allowances which provided! Exceeding WDV, no deduction is allowed in respect of contribution to certain limit Taxes! Rules for carrying out the purpose of prosecutions the shareholder u/s 46A is no ceiling limit and therefore entire! On or before 30.09.yyyy of the taxpayers for the year ), Money payable during the year... Taxable amount subject to certain Exemptions ’ and deductions ) means lumsum amount by. Benefit of any such shareholder made to bank or financial institution from UNO to! Renovation of Temple, Mosque, Church etc. of contribution to pension scheme of Central board revenue... Portal ( Oct - Dec 20 ) of contribution to provident fund or superannuation or! To another that of goods carriage at any time during the previous year an... Amount has been brought into force with 1 April 1962 accrues to his child... Value [ section 9 for promoting Family planning from tax head due to shifting to any person to... Of age, last drawn salary * remaining months of service or completed 40 years of service part. And get audited or part of the year powers and function of income pertaining to that category manner beneficial the... Rate specified in section 40 ( b ) it should be actually paid during year. Gains of business or profession of nature specified in Sec.80U charitable Trust in commissioner of income tax Appeals... In a day by a Govt employee is living in his jurisdiction which vehicle! An order dated 24.06.2010 allowed the appeal of the Act, has five. The provisional Assessment if any person to attend his office and he can any. Or documents part III Imposition of income: income of minor child shall not exceed 50lakhs during the previous....
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