Law of taxation- Income-tax Act 1961

Law of taxation- Income-tax Act , 1961

COMPUTATION OF TOTAL INCOME

Heads of income SECTIONS 14. Heads of income.

14A. Expenditure incurred in relation to income not includible in total income. A.—Salaries 15. Salaries. 16. Deductions from salaries. 17. “Salary”, “perquisite” and “profits in lieu of salary” defined. B.— [Omitted] 18. [Omitted.]. 19. [Omitted.]. 20. [Omitted.]. 21. [Omitted.]. C.—Income from house property 22. Income from house property. 23. Annual value how determined. 24. Deductions from income from house property. 25. Amounts not deductible from income from house property. 25A. Special provision for arrears of rent and unrealised rent received subsequently. 26. Property owned by co-owners. 27. “Owner of house property”, “annual charge”, etc., defined. D.—Profits and gains of business or profession 28. Profits and gains of business or profession. 29. Income from profits and gains of business or profession, how computed. 30. Rent, rates, taxes, repairs and insurance for buildings. 31. Repairs and insurance of machinery, plant and furniture. 32. Depreciation. 32A. Investment allowance. 32AB. Investment deposit account. 32AC. Investment in new plant or machinery. 32AD. Investment in new plant or machinery in notified backward areas in certain States. 33. Development rebate. 33A. Development allowance. 33AB. Tea development account, coffee development account and rubber development account.

33ABA. Site Restoration Fund. 33AC. Reserves for shipping business. 33B. Rehabilitation allowance. 34. Conditions for depreciation allowance and development rebate. 34A. Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies. 35. Expenditure on scientific research. 35A. Expenditure on acquisition of patent rights or copyrights. 35AB. Expenditure on know-how. 35ABA. Expenditure for obtaining right to use spectrum for telecommunication services. 35ABB. Expenditure for obtaining licence to operate telecommunication services. 35AC. Expenditure on eligible projects or schemes. 35AD. Deduction in respect of expenditure on specified business. 35B. [Omitted.]. 35C. [Omitted.]. 35CC. [Omitted.]. 35CCA. Expenditure by way of payment to associations and institutions for carrying out rural development programmes. 35CCB. Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources. 35CCC. Expenditure on agricultural extension project. 35CCD. Expenditure on skill development project. 35D. Amortisation of certain preliminary expenses. 35DD. Amortisation of expenditure in case of amalgamation or demerger. 35DDA. Amortisation of expenditure incurred under voluntary retirement scheme. 35E. Deduction for expenditure on prospecting, etc., for certain minerals. 36. Other deductions. 37. General. 38. Building, etc., partly used for business, etc., or not exclusively so used. 39. [Omitted.]. 40. Amounts not deductible. 40A. Expenses or payments not deductible in certain circumstances. 41. Profits chargeable to tax. 42. Special provision for deductions in the case of business for prospecting, etc., for mineral oil. 43. Definitions of certain terms relevant to income from profits and gains of business or profession. 43A. Special provisions consequential to changes in rate of exchange of currency. 43AA. Taxation of foreign exchange fluctuation. 43B. Certain deductions to be only on actual payment. 43C. Special provision for computation of cost of acquisition of certain assets. 43CA. Special provision for full value of consideration for transfer of assets other than capital assets in certain cases. 43CB. Computation of income from construction and service contracts. 43D. Special provision in case of income of public financial institutions, public companies, etc. 44. Insurance business. 44A. Special provision for deduction in the case of trade, professional or similar association. 44AA. Maintenance of accounts by certain persons carrying on profession or business. 44AB. Audit of accounts of certain persons carrying on business or profession. 4 SECTIONS 44AC. [Omitted.]. 44AD. Special provision for computing profits and gains of business on presumptive basis. 44ADA. Special provision for computing profits and gains of profession on presumptive basis. 44AE. Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages. 44AF. Special provisions for computing profits and gains of retail business. 44B. Special provision for computing profits and gains of shipping business in the case of nonresidents. 44BB. Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils. 44BBA. Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents. 44BBB. Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects. 44C. Deduction of head office expenditure in the case of non-residents. 44D. Special provisions for computing income by way of royalties, etc., in the case of foreign companies. 44DA. Special provision for computing income by way of royalties, etc., in the case of non- residents. 44DB. Special provision for computing deductions in the case of business reorganisation of co-operative banks. E.—Capital gains 45. Capital gains. 46. Capital gains on distribution of assets by companies in liquidation. 46A. Capital gains on purchase by company of its own shares or other specified securities. 47. Transactions not regarded as transfer. 47A. Withdrawal of exemption in certain cases. 48. Mode of computation. 49. Cost with reference to certain modes of acquisition. 50. Special provision for computation of capital gains in case of depreciable assets. 50A. Special provision for cost of acquisition in case of depreciable asset. 50B. Special provision for computation of capital gains in case of slump sale. 50C. Special provision for full value of consideration in certain cases. 50CA. Special provision for full value of consideration for transfer of share other than quoted share. 50D. Fair market value deemed to be full value of consideration in certain cases. 51. Advance money received. 52. [Omitted.]. 53. [Omitted.]. 54. Profit on sale of property used for residence. 54A. [Omitted.]. 54B. Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases. 54C. [Omitted.]. 54D. Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases. 54E. Capital gain on transfer of capital assets not to be charged in certain cases. 5 SECTIONS 54EA. Capital gain on transfer of long-term capital assets not to be charged in the case of investment in specified securities. 54EB. Capital gain on transfer of long-term capital assets not to be charged in certain cases. 54EC. Capital gain not to be charged on investment in certain bonds. 54ED. Capital gain on transfer of certain listed securities or unit not to be charged in certain cases. 54EE. Capital gain not to be charged on investment in units of a specified fund. 54F. Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house. 54G. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area. 54GA. Exemption capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone. 54GB. Capital gain on transfer of residential property not to be charged in certain cases. 54H. Extension of time for acquiring new asset or depositing or investing amount of capital gain. 55. Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”. 55A. Reference to Valuation Officer. F.—Income from other sources 56. Income from other sources. 57. Deductions. 58. Amounts not deductible. 59. Profits chargeable to tax. CHAPTER V INCOME OF OTHER PERSONS, INCLUDED IN ASSESSEE’S TOTAL INCOME 60. Transfer of income where there is no transfer of assets. 61. Revocable transfer of assets. 62. Transfer irrevocable for a specified period. 63. “Transfer” and “revocable transfer” defined. 64. Income of individual to include income of spouse, minor child, etc. 65. Liability of person in respect of income included in the income of another person. CHAPTER VI AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSS Aggregation of income 66. Total income. 67. [Omitted.]. 67A. Method of computing a member’s share in income of association of persons or body of individuals. 68. Cash credits. 69. Unexplained investments. 69A. Unexplained money, etc. 69B. Amount of investments, etc., not fully disclosed in books of account. 69C. Unexplained expenditure, etc. 69D. Amount borrowed or repaid on hundi. 6 Set off, or carry forward and set off SECTIONS 70. Set off of loss from one source against income from another source under the same head of income. 71. Set off of loss from one head against income from another. 71A. Transitional provisions for set off of loss under the head “Income from house property”. 71B. Carry forward and set off of loss from house property. 72. Carry forward and set off of business losses. 72A. Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc. 72AA. Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases. 72AB. Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks. 73. Losses in speculation business. 73A. Carry forward and set off of losses by specified business. 74. Losses under the head “Capital gains”. 74A. Losses from certain specified sources falling under the head “Income from other sources”. 75. Losses of firms. 78. Carry forward and set off of losses in case of change in constitution of firm or on succession. 79. Carry forward and set off of losses in case of certain companies. 80. Submission of return for losses. CHAPTER VI-A DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME A.—General 80A. Deductions to be made in computing total income. 80AA. [Omitted.]. 80AB. Deductions to be made with reference to the income included in the gross total income. 80AC. Deduction not to be allowed unless return furnished. 80B. Definitions. B.—Deductions in respect of certain payments 80C. Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

80CC. [Omitted.].

80CCA. Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan.

80CCB. Deduction in respect of investment made under Equity Linked Savings Scheme.

80CCC. Deduction in respect of contribution to certain pension funds.

80CCD. Deduction in respect of contribution to pension scheme of Central Government.

80CCE. Limit on deductions under sections 80C, 80CCC and 80CCD. 7 SECTIONS

80CCF. Deduction in respect of subscription to long-term infrastructure bonds.

80CCG. Deduction in respect of investment made under an equity savings scheme.

80D. Deduction in respect of health insurance premia.