This document provides an overview of key concepts in the Indian Income Tax Act of 1961. It discusses topics such as the distinction between capital and revenue receipts/expenditures, types of income like salaries, dividends, and capital gains, accounting methods, residential status and its impact on tax incidence, incomes that are exempt from taxation, and classifications of different types of income. The purpose is to introduce basic concepts and classifications within the Indian tax code.
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This document provides an overview of key concepts in the Indian Income Tax Act of 1961. It discusses topics such as the distinction between capital and revenue receipts/expenditures, types of income like salaries, dividends, and capital gains, accounting methods, residential status and its impact on tax incidence, incomes that are exempt from taxation, and classifications of different types of income. The purpose is to introduce basic concepts and classifications within the Indian tax code.
This document provides an overview of key concepts in the Indian Income Tax Act of 1961. It discusses topics such as the distinction between capital and revenue receipts/expenditures, types of income like salaries, dividends, and capital gains, accounting methods, residential status and its impact on tax incidence, incomes that are exempt from taxation, and classifications of different types of income. The purpose is to introduce basic concepts and classifications within the Indian tax code.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
This document provides an overview of key concepts in the Indian Income Tax Act of 1961. It discusses topics such as the distinction between capital and revenue receipts/expenditures, types of income like salaries, dividends, and capital gains, accounting methods, residential status and its impact on tax incidence, incomes that are exempt from taxation, and classifications of different types of income. The purpose is to introduce basic concepts and classifications within the Indian tax code.
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Presentation on The Income Tax Act,1961 Contents 1. Basic concepts 2. Distinction between capital receipts and revenue receipts 3. Distinction between capital expenditure and revenue expenditure 4. Residential status and tax incidence Concept 1. Assessment year 2. Previous year 3. Person 4. Assessee 5. Charge of income tax 6. Income 7. Gross Total Income 8. Total income 9. Tax rebate 10. Submission of return 11. Assessment Income 1. Profit or gains including any benefit 2. Salary income including benefits 3. Dividend income 4. Winning from lotteries 5. Capital gains on sale of capital assets 6. Amount from insurance policy 7. Voluntary contribution 8. Any allowance granted to Assessee 9. Any sum received from individual excluding 1. Amount received by natural love and affection 2. Amount received by will 3. Amount by bonus 4. Any sum received on death of karta 5. Any sum received from an occasion Distinction between capital receipts and revenue receipts 1. Regularity 2. Circulation 3. Income 4. Source of payment 5. Motive of the payer 6. Classification of such receipt in the books of the Assessee 7. Lump sum/installments Distinction between capital expenditure and revenue expenditure Capital Expenditure Revenue expenditure 1. Acquisition 1. Routine expense 2. Benefit for several 2. One year years 3. Maintaining profit 3. For improving earning 4. Recurring expenditure capacity 4. One time expense Accounting method 1. Mercantile system 2. Cash system Residential status and tax incidence 1. Resident and ordinary resident 2. Resident but not ordinary resident 3. Non resident of India 4. Residential status of 1. Huf 2. Company 3. Income 4. Income from business in India 5. Income from business outside India Salaries 1. Salaries payable outside India 2. Dividend 3. Income from interest 4. Income from royalty 5. Fees for technical services Incomes exempt from tax 1. Agriculture income 1. Land situated in India 2. Used for agriculture purpose 3. Income from carrying on agriculture operation 4. Processing for agriculture produce to render it 5. Occupied for dwelling purpose 6. Assessed to land revenue 2. Receipts by a member of a hindu undevided family 3. Share of profit from partnership firm 4. Casual and non-recurring receipts 5. Interest to non-residents 6. Lave travel concession Incomes exempt from tax 1. Value of concessional passage to a foreign national employee 2. Remuneration received by a foreign diplomat 3. Remuneration of a technician in India 4. Salary received by a ship’s crew 5. Salary of a foreign national as a professor 6. Sum received by a foreign research scholar 7. Remuneration as foreign trainee Exemption 1. Tax paid on behalf of non-resident 2. Technical fees received by a notified foreign company 3. Income of a foreign government employee 4. Remuneration or fees received by a non-resident consultant 5. Gratuity 6. Pension and leave salary 7. Retrenchment compensation 8. Compensation by victims 9. Payment from public sector at the time of voluntary services 10. Amount of tax borne by employer on behalf of employee 11. Amount received on life insurance policies 12. Payment from provident fund 13. Payment from approved super annuational fund 14. HRA 15. Special allowance 16. Income received as exchange risk premium Classification of income 1. Salaries 2. Income from house property 3. Profits and gains of business or profession 4. Capital gains 5. Income from other sources
