Tax Management



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  1. Income Tax Information
    • Determination of Residential Status

      Resident and Ordinarily Resident, Resident but Not Ordinarily Resident and Non Resident

    • Incomes Taxable in India
    • Non – Residence (NR - Tax Corner

      This section contains Income Tax Slabs and Rates for Non – Residence and Information of Income Tax Act (also written shortly as IT Act)

  2. Income Tax

    Income tax section contains Income Tax Slabs and Rates, Information of Income Tax Act (also written shortly as IT Act) & Rules and other information for various categories of resident tax payers & topics of general interest in Lehman Language.

    • Deductions from Gross Total Income
    • Calculate Interest u/s 234 A, 234 B and 234 C
  3. Clubbing of Income

    Clubbing of income means Income of other person included in assessee’s total income.

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Income Tax Information

  1. Residential Status

    For the purpose of Income-tax, an individual may have any one of the following residential status:

    • Resident and ordinarily resident in India
    • Resident but not ordinarily resident in India
    • Non-resident

    The residential status of the taxpayer is to be determined every year by applying the provisions of the Income-tax Act. The residential status of an individual may change from year to year.
    For this page I will provide with a flow chart on Residential Status in case of Individual

    Residential Status of Hindu Undivided Family (HUF) A resident HUF whose manager (i.e. karta or manager including successive karta’s) does not satisfy any of the aforesaid conditions or satisfies only one of the aforesaid conditions will be regarded as Resident but Not Ordinarily Resident.
    An HUF is treated as non-resident if control and management of its affairs is situated wholly outside India during the previous year.

    Residential Status of a Company

    As per Section 6(3) of Income Tax Act, an Indian company is always resident in India.

    A foreign company is resident in India only if during the previous year if the control and management of its affairs are situated wholly in India.
    A foreign company is treated as non-resident if during the previous year the control and management of its affairs is situated wholly or partly out of India.
    Every person other than an individual, HUF and company is said to be resident in India during the year, if the control and management of its affairs for that year is located wholly or partly in India.

  2. Incomes Taxable in India

    Resident status wise incomes taxable / not taxable in India.

    Nature of income Resident and ordinarily resident Resident but not ordinarily resident Non-resident
    Income which accrues or arises in India Taxed Taxed Taxed
    Income which is deemed to accrue or arise in India Taxed Taxed Taxed
    Income which is received in India Taxed Taxed Taxed
    Income which is deemed to be received in India Taxed Taxed Taxed
    Income accruing outside India from a business controlled from India or from a profession set up in India Taxed Taxed Not Taxed
    Income other than above (i.e. income which has no relation with India) Taxed Not Taxed? Not Taxed

Calculate Interest u/s 234 A, 234 B and 234 C
Section 234 A : Interest payable for default in furnishing the return of income
Where the return of income for any assessment year is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for the period commencing on the date immediately following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the due date for filing of the return.

Section 234 B : Interest payable for default in payment of advance tax
An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.

Section 234 C : Interest payable for deferment of advance tax
For non corporate (Individuals, HUFs, Firms, Co-operatives & Local Authorities) assessees Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th September and 15th December and interest @ 1% on the amount of shortfa ll in payment of advance tax became due on 15th March.

For Corporate assessees Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th June, 15th September and 15th December and interest @ 1% on the amount of shortfall in payment of advance tax became due on 15th March.

Note: In case of salaried employees, the advance tax liability is to be computed on the income other than salary income. TDS deducted by the employer is not to be adjusted against this liability.

Deductions from Gross Total Income

The impact of Deductions available under various sections of Income Tax Act is not same for all. It depends upon applicable tax rates as per the total taxable income and status of assessees. An assessee, whose income is taxable at higher rates will have more tax savings i.e. more impact on his / her tax liability than the assessee whose income is taxable at lower rates. You may use Maximize Tax Savings tool to check the impact of various availabe deductions to you on your tax liability.

Deductions Allowable under various sections of Chapter VIA of Income Tax Act :

  • Section 80C (Various investments)

  • Section 80CCD(1) (Assessee's contribution to pension a/c)

  • Section 80CCD (Additional contribution to NPS)

  • Section 80D (Medical/health ensurance)

  • Section 80DDB (Medical exp. on self/dependent relative)

  • Section 80G (Donations)

  • Section 80G (Donations)

  • Section 80GGA (Donations)

  • Section 80RRB (Royalty on patents)

  • Section 24 (Home loan intt.)

  • Section 80C (Various investments)

  • Section 80CCC (Premium for annuity plans)

  • Section 80CCD(2) (Employer's contribution to pension a/c)

  • Section 80CCG (Rajiv Gandhi Equity Saving Scheme)

  • Section 80DD (Reh. of handicapped dependent relative)

  • Section 80E (Intt. on loan for higher studies)

  • Section 80EE (Intt. on loan for residential house property)

  • Section 80GG (House rent)

  • Section 80GGC (Sci. Research/Rural Dev.)

  • Section 80QQB (Royalty on books)

  • Section 80U (Physical disability)

This section has been introduced by the Finance Act 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/ payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section (alongwith section 80CCC and 80CCD) is limited to Rs. 1.50 lakh only.
• Life Insurance Premium For individual, policy must be in self or spouse's or any child's name. For HUF, it may be on life of any member of HUF.
• Sum paid under contract for deferred annuity for individual, on life of self, spouse or any child .
• Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
• Investment in Senior Citizens Savings Scheme 2004 for 5 year by resident individuals.
• Contribution made under Employee's Provident Fund Scheme.
• Contribution to PPF For resident individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
• Deposit in Sukanya Samriddhi Account as natural / legal guardian of girl child.
• Contribution by employee to a Recognised Provident Fund.
• Sum deposited in 10 year/15 year account of Post Office Saving Bank
• Subscription to any notified securities/notified deposits scheme. e.g. NSS
• Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
• Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
• Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
• Certain payment made by way of instalment or part payment of loan taken for purchase/construction of residential house property.
• Investments in Sukanya Samriddhi Scheme (w.e.f. 01.04.2015}
Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
• Contribution to notified annuity Plan of LIC(e.g. Jeevan Dhara) or Units of UTI/notified Mutual Fund. If in respect of such contribution, deduction u/s 80CCC has been availed of rebate u/s 88 would not be allowable.
• Subscription to units of a Mutual Fund notified u/s 10(23D).
• Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
• Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
• Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children. Available in respect of any two children


Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer

Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 150,000/-.
The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
Note: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is Rs. 1,50,000/-.

Section 80CCD (1): Deduction in respect of Contribution to Pension Account (by Assessee}

Deduction available for the amount paid or deposited in a pension scheme notified or as may be notified by the Central Government subject to a maximum of :
(a) 10% of salary in the previous year in the case of an employee
(b) 10% of gross total income in any other case.
The maximum deduction allowable under the secion is Rs. 1.00 lac. Rs. 1.50 lacs w.e.f. 01.04.2015 in case of contribution to New Pension Scheme (NPS).

Section 80CCD (2): Deduction in respect of Contribution to Pension Account (by Employer}


Deduction available for the amount paid or deposited by the employer of the assessee in a pension scheme notified or as may be notified by the Central Government subject to a maximum of 10% of salary in the financial year.

Section 80CCD: Additional Contribution to New Pension Scheme (NPS)

A deduction of upto Rs. 50,000 is available over and above the limit of Rs. 1.50 lakh in respect of contributions made to NPS under Section 80CCD(1).

Section 80CCG:

Amount invested by resident individuals, whose gross total income does not exceed Rs. 12 lakhs, in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions).
Deduction of 50 % of total investment subject to maximum of Rs. 25,000 in 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired.

Section 80D: Deduction in respect of Medical Insurance

Deduction is available upto Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) for senior citizens and upto Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) if parents are senior Citizen and Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Section 80DD: Deduction available to resident Individual and HUF in respect of Rehabilitation of Handicapped Dependent Relative

Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) in respect of
1. Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the defendant is a person with severe disability a deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist. Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Section 80DDB: Deduction allowed to resident Individual and HUF in respect of Medical Expenditure on Self or Dependent Relative

A deduction to the extent of Rs. 40,000/- (Rs. 60,000 in case of senior citizen) or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Section 80E: Deduction in respect of Interest on Loan for Higher Studies

Deduction in respect of interest on loan taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative w.e.f. A.Y. 2008-09.

Section 80EE: Deduction in respect of Interest on Residential House Property

The deduction under this sub-section is available w.e.f. AY 2014-15. The maximum deduction available is Rs. 1 lac. In a case where the interest payable for the financial year 2013-14 is less than Rs. 1 lac, the balance deduction amount shall be available in AY 2015-16.
The deduction under sub-section (1) shall be subject to the following conditions :
1. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
2. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
3. the value of the residential house property does not exceed forty lakh rupees;
4. the assessee does not own any residential house property on the date of sanction of the loan.

If deduction for Housing Loan Interest is availed under this section, no deduction can be availed for such interest under any other provisions of the Act for the same or any other assessment year.

Section 80G: Deduction in respect of Various Donations

The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G

Section 80GG: Deduction in respect of House Rent Paid

Deduction available is the least of 1. Rent paid less 10% of total income
2. Rs. 2000/- per month i.e. Maximum Deduction available is 24,000/-
3. 25% of total income, provided
o Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
o He should not be in receipt of house rent allowance.
o He should not have self occupied residential premises in any other place.

Section 80GGC: Deduction in respect of contributions given by any person to political parties

Section 80QQB: Royalty Income of resident individuals on patents.

Maximum deduction Rs. 3,00,000/-

Section 80RRB: Royalty Income of resident individual authors of certain books other than text books.

Maximum deduction Rs. 3,00,000/-

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account

Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 01.04.2012 (Assessment Year 2013-14).

Section 80U: Deduction in respect of Person suffering from Physical Disability

Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) to a resident individual who suffers from a physical disability(including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.
Deductions Allowable under Section 24 of Income Tax Act :
Where a housing property has been acquired / constructed / repaired / renewed with borrowed capital, the amount of interest payable yearly on such capital is allowed as deduction under Section 24 of Income Tax Act, subject to the limits stated below. Penal interest on housing loan is not eligible for deduction. If a fresh loan has been raised to repay the original loan and the new loan has been used only for the purpose of repaying the original loan then, the interest accrued on such fresh loan is allowed for deduction. 1. If the property is acquired or constructed with the capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which capital was borrowed then the actual interest payable is allowed as deduction subject to a maximum Rs. 2,00,000/- (Rs. 1,50,000/- upto 31.03.2015).
2. In other case interest up to maximum Rs. 30,000/- is deductible.
3. The ceiling of Rs.2,00,000/- (Rs. 1,50,000 upto 31.03.2015) or Rs. 30,000/- is only in case the property is self occupied. There is no limit on deduction of interest if the property is let out.
Clubbing of income means Income of other person included in assessee’s total income, for example: Income of husband which is shown to be the income of his wife is clubbed in the income of Husband and is taxable in the hands of the husband. Under the Income Tax Act a person has to pay taxes on his income. A person cannot transfer his income or an asset which is his one of source of his income to some other person or in other words we can say that a person cannot divert his income to any other person and says that it is not his income. If he do so the income shown to be earned by any other person is included in the assessee’s total income and the assessee has to pay tax on it.

Deductions Allowable under Section 24 of Income Tax Act :

Where a housing property has been acquired / constructed / repaired / renewed with borrowed capital, the amount of interest payable yearly on such capital is allowed as deduction under Section 24 of Income Tax Act, subject to the limits stated below. Penal interest on housing loan is not eligible for deduction. If a fresh loan has been raised to repay the original loan and the new loan has been used only for the purpose of repaying the original loan then, the interest accrued on such fresh loan is allowed for deduction.

1. If the property is acquired or constructed with the capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which capital was borrowed then the actual interest payable is allowed as deduction subject to a maximum Rs. 2,00,000/- (Rs. 1,50,000/- upto 31.03.2015).

2. In other case interest up to maximum Rs. 30,000/- is deductible.

3. The ceiling of Rs.2,00,000/- (Rs. 1,50,000 upto 31.03.2015) or Rs. 30,000/- is only in case the property is self occupied. There is no limit on deduction of interest if the property is let out.
Clubbing of income means Income of other person included in assessee’s total income, for example: Income of husband which is shown to be the income of his wife is clubbed in the income of Husband and is taxable in the hands of the husband. Under the Income Tax Act a person has to pay taxes on his income. A person cannot transfer his income or an asset which is his one of source of his income to some other person or in other words we can say that a person cannot divert his income to any other person and says that it is not his income. If he do so the income shown to be earned by any other person is included in the assessee’s total income and the assessee has to pay tax on it.

SECTION

NATURE OF TRANSACTION

CLUBBED IN THE HANDS OF

CONDITIONS/EXCEPTIONS

RELEVANT REFERENCE

60

Transfer of Income without transfer of Assets.

Transferor who transfers the income

Irrespective of: 1. Whether such transfer is revocable or not. 2. Whether the transfer is effected before or after the commencement of IT Act.

1. Income for the purpose of Section 64 includes losses. [P. Doriswamy Chetty 183 ITR 559 (SC)] [also see Expl. (2) to Section 64] 2. Section 60 does not apply if corpus itself is transferred. [Grandhi Narayana Rao 173 ITR 593 (AP)]

61

Revocable transfer of Assets.

Transferor who transfers the Assets

Clubbing not applicable if: 1. Trust/transfer irrevocable during the lifetime of beneficiaries/transferee or2. Transfer made prior to 1-4-1961 and not revocable for a period of 6 years.Provided the transferor derives no direct or indirect benefit from such income in either case.

Transfer held as revocable 1. If there is provision to re-transfer directly or indirectly whole/part of income/asset to transferor; 2. If there is a right to reassume power, directly or indirectly, the transfer is held revocable and actual exercise is not necessary. [S. Raghbir Singh 57 ITR 408 (SC)] 3. Where no absolute right is given to transferee and asset can revert to transferor in prescribed circumstances, transfer is held revocable. [Jyotendrasinhji vs. S. I. Tripathi 201 ITR 611 (SC)]

64(1)(ii)

Salary, Commission, Fees or remuneration paid to spouse from a concern in which an individual has a substantial* interest.

Spouse whose total income (excluding income to be clubbed) is greater.

Clubbing not applicable if:Spouse possesses technical or professional qualification and remuneration is solely attributable to application of that knowledge/qualification

1. The relationship of husband and wife must subsist at the time of accrual of the income. [Philip John Plasket Thomas 49 ITR 97 (SC)] 2. Income other than salary, commission, fees or remune- ration is not clubbed under this clause

64(1)(iv)

Income from assets transferred directly or indirectly to the spouse without adequate consideration.

Individual transferring the asset.

Clubbing not applicable if: The assets are transferred; 1. With an agreement to live apart.2. Before marriage. 3. Income earned when relation does not exist.4. By Karta of HUF gifting co-parcenary property to his wife. L. Hirday Narain vs. ITO 78 ITR 26 (SC) 5. Property acquired out of pin money. R.B.N.J. Naidu vs. CIT 29 ITR 194 (Nag.)

1. Income earned out of Income arising from transferred assets not liable for clubbed. [M.S.S. Rajan 252 ITR 126 (Mad)]2. Cash gifted to spouse and he/she invests to earn interest. [Mohini Thaper vs. CIT 83 ITR 208 (SC)] 3. Capital gain on sale of property which was received without consideration from spouse [Sevential M. Sheth vs. CIT 68 ITR 503 (SC)] 4. Transaction must be real. [O.N. Mohindroo 99 ITR 583 (Delhi)]

64(1)(vi)

Income from the assets transferred to son’s wife.

Individual transferring the Asset.

Condition: The transfer should be without adequate consideration.

Cross transfers are also covered [C.M.Kothari 49 ITR 107 (SC)]

64(1)(vii),(viii)

Transfer of assets by an individual to a person or AOP for the immediate or deferred benefit of his: (vii) – Spouse. (viii) – Son’s wife.

Individual transferring the Asset.

Condition: 1. The transfer should be without adequate consideration.

1. Transferor need not necessarily have taxable income of his own. [P. Murugesan 245 ITR 301 (Mad)] 2. Wife means legally wedded wife. [Executors of the will of T.V. Krishna Iyer 38 ITR 144 (Ker)]

64(1A)

Income of a minor child [Child includes step child, adopted child and minor married daughter].

1. If the marriage subsists, in the hands of the parent whose total income is greater; or;2. If the marriage does not subsist, in the hands of the person who maintains the minor child.3. Income once included in the total income of either of parents, it shall continue to be included in the hands of some parent in the subsequent year unless AO is satisfied that it is necessary to do so (after giving that parent opportunity of being heard)

Clubbing not applicable for:— 1. Income of a minor child suffering any disability specified u/s. 80U.2. Income on account of manual work done by the minor child.3. Income on account of any activity involving application of skills, talent or specialized knowledge and experience.

1. Transferor need not necessarily have taxable income of his own. [P. Murugesan 245 ITR 301 (Mad)] 2. Wife means legally wedded wife. [Executors of the will of T.V. Krishna Iyer 38 ITR 144 (Ker)] 1. Income out of property transferred for no consideration to a minor married daughter, shall not be clubbed in the parents’ hands. [Section 27]2. The parent in whose hands the minor’s income is clubbed is entitled to an exemption up to Rs. 1,500 per child. [Section 10(32)] )

64(2)

Income of HUF from property converted by the individual into HUF property.

Income is included in the hands of individual & not in the hands of HUF.)

Clubbing applicable even if: The converted property is subsequently partitioned; income derived by the spouse from such converted property will be taxable in the hands of individual.

Fiction under this section must be extended to computation of income also. [M.K. Kuppuraj 127 ITR 447 (Mad)]


4. * An individual shall deemed to have substantial interest in a concern for the purpose of Section 64(1)(ii)


IF THE CONCERN IS A COMPANY

IF THE CONCERN IS OTHER THAN A COMPANY

Person’s beneficial shareholding should not be less than 20% of voting power either individually or jointly with relatives at any time during the Previous Year. (Shares with fixed rate of dividend shall not be considered)

Person either himself or jointly with his relatives is entitled in aggregate to not less than 20% of the profits of such concern, at any time during the previous year.

5. Note :The clubbed income retains the same head under which it is earned.
6. - See more at: http://taxguru.in/income-tax/clubbing-of-income-under-the-income-tax-act-1961.html#sthash.DdtcTe7p.dpuf

Income Tax

Income Tax Slabs & Rates for Assessment Year 2016-17
Please click on the links below to view the Income Tax Slabs and Rates for the Assessment Year 2016-17 (applicable on income earned during 01.04.2015 to 31.03.2016) for various categories of Indian Income Tax payers.


  • Individual resident, aged below 60 years

  • Senior Citizen i.e. an individual resident aged above 60 but below 80 years.

  • Super Senior Citizen i.e. Individual resident aged above 80 years. Any NRI / HUF / AOP / BOI / AJP

  • Co-operative Society

  • Firm

  • Local Authority

  • Domestic Company

  • Other Company

  • About Marginal

  • Relief

1. Individual resident aged below 60 years (i.e. born on or after 1st April 1956)
Income Tax :Tax Calculator : AY 2016-17


Income Slabs Tax Rates
Where the taxable income does not exceed Rs. 2,50,000/-. NIL
Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the taxable income exceeds Rs. 2,50,000/-. Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
Where the taxable income exceeds Rs. 10,00,000/-. Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable) Education Cess : 3% of the total of Income Tax and Surcharge.

2. Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year i.e. born on or after 1st April 1936 but before 1st April 1956)

Income Tax :Tax Calculator : AY 2016-17


Income Slabs Tax Rates
Where the taxable income does not exceed Rs. 3,00,000/-. NIL
Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- 10% of the amount by which the taxable income exceeds Rs. 3,00,000/-. Less : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
Where the taxable income exceeds Rs. 10,00,000/- Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

3.Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year i.e. born before 1st April 1936)
Income Tax :Tax Calculator : AY 2016-17

Income Slabs Tax Rates
Where the taxable income does not exceed Rs. 5,00,000/-. NIL
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
Where the taxable income exceeds Rs. 10,00,000/- Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

4. Any NRI or HUF or AOP or BOI or AJP*
Income Tax :


Income Slabs NIL
Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
Where the taxable income exceeds Rs. 10,00,000/-. Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.
* Abbreviations used : NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person

Co-operative Society

Income Tax :


Income Slabs Tax Rates
Where the taxable income does not exceed Rs. 10,000/-. 10% of the income.
Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-. Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
Where the taxable income exceeds Rs. 20,000/- Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-.

Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.


6. Firm
Income Tax : 30% of taxable income.
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

7. Local Authority
Income Tax : 30% of taxable income.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

8. Domestic Company
Income Tax : 30% of taxable income.
Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge
• At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
• At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
Education Cess :
3% of the total of Income Tax and Surcharge.

9. Company other than a Domestic Company Income Tax :
• @ 50% of on so much of the taxable income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
• @ 40% of the balance
Surcharge :
The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under
• At the rate of 2% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
• At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 10 crores. Education Cess : 3% of the total of Income Tax and Surcharge.

10. Marginal Relief in Surcharge When an assessee's taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in Example In case of an individual assesseee (< 60 years) having taxable income of Rs. 1,00,01,000/-


1. Income Tax Rs. 28,25,300
2. Surcharge @12% of Income Tax Rs. 3,39,036
Income Tax on income of Rs. 1 crore Rs. 28,25,000
Maximum Surcharge payable
(Income over Rs. 1 crore less income tax
on income over Rs. 1 crore)
Rs. 700/- (1000 - 300)
Income Tax + Surcharge payable Rs. 28,26,000
Marginal Relief in Surcharge Rs. 3,38,336/- (339036 - 700)

Deductions from Gross Total Income
The impact of Deductions available under various sections of Income Tax Act is not same for all. It depends upon applicable tax rates as per the total taxable income and status of assessees. An assessee, whose income is taxable at higher rates will have more tax savings i.e. more impact on his / her tax liability than the assessee whose income is taxable at lower rates. You may use Maximize Tax Savings tool to check the impact of various availabe deductions to you on your tax liability.

Deductions Allowable under various sections of Chapter VIA of Income Tax Act :

This section has been introduced by the Finance Act 2005. Broadly speaking, this section provides deduction from total income in respect of various investments/ expenditures/ payments in respect of which tax rebate u/s 88 was earlier available. The total deduction under this section (alongwith section 80CCC and 80CCD) is limited to Rs. 1.50 lakh only.
• Life Insurance Premium For individual, policy must be in self or spouse's or any child's name. For HUF, it may be on life of any member of HUF.
• Sum paid under contract for deferred annuity for individual, on life of self, spouse or any child .
• Sum deducted from salary payable to Govt. Servant for securing deferred annuity for self-spouse or child Payment limited to 20% of salary.
• Investment in Senior Citizens Savings Scheme 2004 for 5 year by resident individuals.
• Contribution made under Employee's Provident Fund Scheme.
• Contribution to PPF For resident individual, can be in the name of self/spouse, any child & for HUF, it can be in the name of any member of the family.
• Deposit in Sukanya Samriddhi Account as natural / legal guardian of girl child.
• Contribution by employee to a Recognised Provident Fund.
• Sum deposited in 10 year/15 year account of Post Office Saving Bank
• Subscription to any notified securities/notified deposits scheme. e.g. NSS
• Subscription to any notified savings certificate, Unit Linked Savings certificates. e.g. NSC VIII issue.
• Contribution to Unit Linked Insurance Plan of LIC Mutual Fund e.g. Dhanrakhsa 1989
• Contribution to notified deposit scheme/Pension fund set up by the National Housing Scheme.
• Certain payment made by way of instalment or part payment of loan taken for purchase/construction of residential house property.
• Investments in Sukanya Samriddhi Scheme (w.e.f. 01.04.2015} Condition has been laid that in case the property is transferred before the expiry of 5 years from the end of the financial year in which possession of such property is obtained by him, the aggregate amount of deduction of income so allowed for various years shall be liable to tax in that year.
• Contribution to notified annuity Plan of LIC(e.g. Jeevan Dhara) or Units of UTI/notified Mutual Fund. If in respect of such contribution, deduction u/s 80CCC has been availed of rebate u/s 88 would not be allowable.
• Subscription to units of a Mutual Fund notified u/s 10(23D).
• Subscription to deposit scheme of a public sector, company engaged in providing housing finance.
• Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
• Tuition fees paid at the time of admission or otherwise to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children. Available in respect of any two children Section 80CCC: Deduction in respect of Premium Paid for Annuity Plan of LIC or Other Insurer Payment of premium for annuity plan of LIC or any other insurer Deduction is available upto a maximum of Rs. 150,000/-.

The premium must be deposited to keep in force a contract for an annuity plan of the LIC or any other insurer for receiving pension from the fund.
Note: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is Rs. 1,50,000/-.

Section 80CCD (1): Deduction in respect of Contribution to Pension Account (by Assessee}
Deduction available for the amount paid or deposited in a pension scheme notified or as may be notified by the Central Government subject to a maximum of : (a) 10% of salary in the previous year in the case of an employee
(b) 10% of gross total income in any other case.

The maximum deduction allowable under the secion is Rs. 1.00 lac. Rs. 1.50 lacs w.e.f. 01.04.2015 in case of contribution to New Pension Scheme (NPS).
Section 80CCD (2): Deduction in respect of Contribution to Pension Account (by Employer}
Deduction available for the amount paid or deposited by the employer of the assessee in a pension scheme notified or as may be notified by the Central Government subject to a maximum of 10% of salary in the financial year.
Section 80CCD: Additional Contribution to New Pension Scheme (NPS)
A deduction of upto Rs. 50,000 is available over and above the limit of Rs. 1.50 lakh in respect of contributions made to NPS under Section 80CCD(1).

Section 80CCG:
Amount invested by resident individuals, whose gross total income does not exceed Rs. 12 lakhs, in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions).

Deduction of 50 % of total investment subject to maximum of Rs. 25,000 in 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired.

Section 80D: Deduction in respect of Medical Insurance
Deduction is available upto Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) for senior citizens and upto Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases for insurance of self, spouse and dependent children. Additionally, a deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 30,000/- (enhanced from Rs. 20,000 w.e.f. 01.04.2015) if parents are senior Citizen and Rs. 25,000/- (enhanced from Rs. 15,000 w.e.f. 01.04.2015) in other cases. Therefore, the maximum deduction available under this section is to the extent of Rs. 60,000/-. From AY 2013-14, within the existing limit a deduction of upto Rs. 5,000 for preventive health check-up is available.

Section 80DD: Deduction available to resident Individual and HUF in respect of Rehabilitation of Handicapped Dependent Relative
Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) in respect of
1. Expenditure incurred on medical treatment, (including nursing), training and rehabilitation of handicapped dependent relative.
2. Payment or deposit to specified scheme for maintenance of dependent handicapped relative.
Further, if the defendant is a person with severe disability a deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available under this section. The handicapped dependent should be a dependent relative suffering from a permanent disability (including blindness) or mentally retarded, as certified by a specified physician or psychiatrist. Note: A person with 'severe disability' means a person with 80% or more of one or more disabilities as outlined in section 56(4) of the 'Persons with disabilities (Equal opportunities, protection of rights and full participation)' Act.

Section 80DDB: Deduction allowed to resident Individual and HUF in respect of Medical Expenditure on Self or Dependent Relative
A deduction to the extent of Rs. 40,000/- (Rs. 60,000 in case of senior citizen) or the amount actually paid, whichever is less is available for expenditure actually incurred by resident assessee on himself or dependent relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule 11DD. A certificate in form 10 I is to be furnished by the assessee from any Registered Doctor.

Section 80E: Deduction in respect of Interest on Loan for Higher Studies
Deduction in respect of interest on loan taken for pursuing higher education. The deduction is also available for the purpose of higher education of a relative w.e.f. A.Y. 2008-09.

Section 80EE: Deduction in respect of Interest on Residential House Property
The deduction under this sub-section is available w.e.f. AY 2014-15. The maximum deduction available is Rs. 1 lac. In a case where the interest payable for the financial year 2013-14 is less than Rs. 1 lac, the balance deduction amount shall be available in AY 2015-16.

The deduction under sub-section (1) shall be subject to the following conditions :
1. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
2. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
3. the value of the residential house property does not exceed forty lakh rupees;
4. the assessee does not own any residential house property on the date of sanction of the loan.
If deduction for Housing Loan Interest is availed under this section, no deduction can be availed for such interest under any other provisions of the Act for the same or any other assessment year.
Section 80G: Deduction in respect of Various Donations
The various donations specified in Sec. 80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec. 80G
Section 80GG: Deduction in respect of House Rent Paid
Deduction available is the least of
1. Rent paid less 10% of total income
2. Rs. 2000/- per month i.e. Maximum Deduction available is 24,000/-
3. 25% of total income, provided
o Assessee or his spouse or minor child should not own residential accommodation at the place of employment.
o He should not be in receipt of house rent allowance.
o He should not have self occupied residential premises in any other place.
Section 80GGA: Deduction in respect of certain donations for scientific research or rural development
Section 80GGC: Deduction in respect of contributions given by any person to political parties
Section 80QQB: Royalty Income of resident individuals on patents.
Maximum deduction Rs. 3,00,000/-
Section 80RRB: Royalty Income of resident individual authors of certain books other than text books.
Maximum deduction Rs. 3,00,000/-

Section 80 TTA: Deduction from gross total income in respect of any Income by way of Interest on Savings account
Deduction from gross total income of an individual or HUF, upto a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account ( not time deposits ) with a bank, co-operative society or post office, is allowable w.e.f. 01.04.2012 (Assessment Year 2013-14).

Section 80U: Deduction in respect of Person suffering from Physical Disability
Deduction of Rs. 75,000/- (enhanced from Rs. 50,000 w.e.f. 01.04.2015) to a resident individual who suffers from a physical disability(including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 125,000/- (enhanced from Rs. 1,00,000 w.e.f. 01.04.2015) shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.

Deductions Allowable under Section 24 of Income Tax Act :
Where a housing property has been acquired / constructed / repaired / renewed with borrowed capital, the amount of interest payable yearly on such capital is allowed as deduction under Section 24 of Income Tax Act, subject to the limits stated below. Penal interest on housing loan is not eligible for deduction. If a fresh loan has been raised to repay the original loan and the new loan has been used only for the purpose of repaying the original loan then, the interest accrued on such fresh loan is allowed for deduction.

1. If the property is acquired or constructed with the capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which capital was borrowed then the actual interest payable is allowed as deduction subject to a maximum Rs. 2,00,000/- (Rs. 1,50,000/- upto 31.03.2015).
2. In other case interest up to maximum Rs. 30,000/- is deductible.
3. The ceiling of Rs.2,00,000/- (Rs. 1,50,000 upto 31.03.2015) or Rs. 30,000/- is only in case the property is self occupied. There is no limit on deduction of interest if the property is let out.
Calculate Interest u/s 234 A, 234 B and 234
Section 234 A : Interest payable for default in furnishing the return of income
Where the return of income for any assessment year is furnished after the due date or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for the period commencing on the date immediately following the due date upto the date of furnishing the return (in cases where return is furnished after the due date) or upto the end of the Assessment Year (in cases where no return is furnished) on the amount of shortfall in total income tax payable by the assessee.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the due date for filing of the return.

Section 234 B : Interest payable for default in payment of advance tax
An assessee who is liable to pay advance tax has failed to pay such tax or where the advance tax paid by such assessee is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month for period from the date on which the payment of advance tax became due on the amount of shortfall in the amount of advance tax paid.

In simple words, interest @ 1% per month is payable on the amount of income tax paid after the end of the financial year.

Section 234 C : Interest payable for deferment of advance tax
For non corporate (Individuals, HUFs, Firms, Co-operatives & Local Authorities) assessees Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th September and 15th December and interest @ 1% on the amount of shortfa ll in payment of advance tax became due on 15th March.
For Corporate assessees Interest is payable @ 1% for 3 months on the amount of shortfall in payment of advance tax became due on 15th June, 15th September and 15th December and interest @ 1% on the amount of shortfall in payment of advance tax became due on 15th March.
Note: In case of salaried employees, the advance tax liability is to be computed on the income other than salary income. TDS deducted by the employer is not to be adjusted against this liability.

Clubbing of Income

Clubbing of income means Income of other person included in assessee’s total income.
for example: Income of husband which is shown to be the income of his wife is clubbed in the income of Husband and is taxable in the hands of the husband. Under the Income Tax Act a person has to pay taxes on his income. A person cannot transfer his income or an asset which is his one of source of his income to some other person or in other words we can say that a person cannot divert his income to any other person and says that it is not his income. If he do so the income shown to be earned by any other person is included in the assessee’s total income and the assessee has to pay tax on it.


SECTION NATURE OF TRANSACTION CLUBBED IN THE HANDS OF CONDITIONS/EXCEPTIONS RELEVANT REFERENCE
60 Transfer of Income without transfer of Assets. Transferor who transfers the income. Irrespective of:
1. Whether such transfer is revocable or not. 2. Whether the transfer is effected before or after the commencement of IT Act.
1. Income for the purpose of Section 64 includes losses. [P. Doriswamy Chetty 183 ITR 559 (SC)] [also see Expl. (2) to Section 64] 2. Section 60 does not apply if corpus itself is transferred. [Grandhi Narayana Rao 173 ITR 593 (AP)]
61 Revocable transfer of Assets. Transferor who transfers the Assets. Clubbing not applicable if: 1. Trust/transfer irrevocable during the lifetime of beneficiaries/transferee or2. Transfer made prior to 1-4-1961 and not revocable for a period of 6 years.Provided the transferor derives no direct or indirect benefit from such income in either case. Transfer held as revocable 1. If there is provision to re-transfer directly or indirectly whole/part of income/asset to transferor; 2. If there is a right to reassume power, directly or indirectly, the transfer is held revocable and actual exercise is not necessary. [S. Raghbir Singh 57 ITR 408 (SC)] 3. Where no absolute right is given to transferee and asset can revert to transferor in prescribed circumstances, transfer is held revocable. [Jyotendrasinhji vs. S. I. Tripathi 201 ITR 611 (SC)]
64(1)(ii) Salary,Commission, Fees or remuneration paid to spouse from a concern in which an individual has a substantial* interest. Spouse whose total income (excluding income to be clubbed) is greater. Clubbing not applicable if:Spouse possesses technical or professional qualification and remuneration is solely attributable to application of that knowledge/qualification. 1. The relationship of husband and wife must subsist at the time of accrual of the income. [Philip John Plasket Thomas 49 ITR 97 (SC)] 2. Income other than salary, commission, fees or remune- ration is not clubbed under this clause
64(1)(iv) Income from assets transferred directly or indirectly to the spouse without adequate consideration. Individual transferring the asset. Clubbing not applicable if: The assets are transferred; 1. With an agreement to live apart.2. Before marriage. 3. Income earned when relation does not exist.4. By Karta of HUF gifting co-parcenary property to his wife. L. Hirday Narain vs. ITO 78 ITR 26 (SC) 5. Property acquired out of pin money. R.B.N.J. Naidu vs. CIT 29 ITR 194 (Nag.) ] 1. Income earned out of Income arising from transferred assets not liable for clubbed. [M.S.S. Rajan 252 ITR 126 (Mad)]2. Cash gifted to spouse and he/she invests to earn interest. [Mohini Thaper vs. CIT 83 ITR 208 (SC)] 3. Capital gain on sale of property which was received without consideration from spouse [Sevential M. Sheth vs. CIT 68 ITR 503 (SC)] 4. Transaction must be real. [O.N. Mohindroo 99 ITR 583 (Delhi)]
64(1)(vi) Income from the assets transferred to son’s wife. Individual transferring the Asset. Condition: The transfer should be without adequate consideration. Cross transfers are also covered [C.M.Kothari 49 ITR 107 (SC)]
64(1)(vii),(viii) Transfer of assets by an individual to a person or AOP for the immediate or deferred benefit of his: (vii) – Spouse. (viii) – Son’s wife. Individual transferring the Asset. Condition: 1. The transfer should be without adequate consideration. 1. Transferor need not necessarily have taxable income of his own. [P. Murugesan 245 ITR 301 (Mad)] 2. Wife means legally wedded wife. [Executors of the will of T.V. Krishna Iyer 38 ITR 144 (Ker)]
64(1A) Income of a minor child [Child includes step child, adopted child and minor married daughter]. 1. If the marriage subsists, in the hands of the parent whose total income is greater; or;2. If the marriage does not subsist, in the hands of the person who maintains the minor child.3. Income once included in the total income of either of parents, it shall continue to be included in the hands of some parent in the subsequent year unless AO is satisfied that it is necessary to do so (after giving that parent opportunity of being heard) Clubbing not applicable for:— 1. Income of a minor child suffering any disability specified u/s. 80U.2. Income on account of manual work done by the minor child.3. Income on account of any activity involving application of skills, talent or specialized knowledge and experience. 1. Income out of property transferred for no consideration to a minor married daughter, shall not be clubbed in the parents’ hands. [Section 27]2. The parent in whose hands the minor’s income is clubbed is entitled to an exemption up to Rs. 1,500 per child. [Section 10(32)]
64(2) Income of HUF from property converted by the individual into HUF property. Income is included in the hands of individual & not in the hands of HUF. Clubbing applicable even if: The converted property is subsequently partitioned; income derived by the spouse from such converted property will be taxable in the hands of individual. Fiction under this section must be extended to computation of income also. [M.K. Kuppuraj 127 ITR 447 (Mad)]

1. * An individual shall deemed to have substantial interest in a concern for the purpose of Section 64(1)(ii)

IF THE CONCERN IS A COMPANY IF THE CONCERN IS OTHER THAN A COMPANY
Person’s beneficial shareholding should not be less than 20% of voting power either individually or jointly with relatives at any time during the Previous Year. (Shares with fixed rate of dividend shall not be considered) Person either himself or jointly with his relatives is entitled in aggregate to not less than 20% of the profits of such concern, at any time during the previous year.

Note :The clubbed income retains the same head under which it is earned.

Tax Reckoner for Mutual Fund





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