Taxation-I

Introduction: Definitions- Assessee, Assessment Year,
Income, Person, Previous Year, Gross Total Income.
Scope of Total Income & Residential Status.
Income which do not form part of Total Income.

Income under the Head “Salaries”
Basis of charge
Deductions from Salaries
Deduction on account of Entertainment Allowance,
Employment Tax
Inclusive definition of Perquisite
Treatment of Medical Facilities
Profits in Lieu of Salary
Treatment of Leave Travel Concession, Gratuity,
Commuted Pension, Retrenchment Compensation,
Compensation received on Voluntary Retirement
House Rent Allowance and notified special allowances
Deduction in respect of Life Insurance premium,
Contribution to Provident Fund etc.
Relief when salary is paid in arrears or in advance, etc.
Valuation of Perquisites:
Rent Free Accommodation
Monetary obligation of employee discharged by employer
Life Insurance Premium etc. payable by employer
Fringe benefits or amenity
Motor Car
Services of Sweeper etc.
Supply of gas, electricity or water
Educational Facilities

Computation of Taxable Income under the head House
Property:
Chargeability and Basis of charge
Computation of Annual Value
Treatment of Unrealized Rent
Computation of Income of a self occupied and let out
House Property
Deductions from Income from House Property
Treatment of Unrealized Rent realized subsequently
Treatment of arrears of rent received
Property owned by co-owners
Deemed ownership

Income under the Head “Profits and Gains of Business or
Profession”
Scope of Income under this head
Rent, rates, taxes, repair and insurance for buildings
Repair and insurance of Plant, Machinery and Furniture
Depreciation
Treatment of unabsorbed depreciation
Tea Development Account/Coffee Development Account
and Rubber Development Account
Site Restoration Fund
Expenditure on Scientific Research
Weighted Deduction on in-house research and development
to Company assesse
Expenditure for obtaining license to operate tele
communication services
Expenditure on eligible projects or schemes
Deduction in respect of expenditure on specified business
Expenditure by way of payment to association and
institutions for rural development programme
Weighted deduction on agricultural extension project and
skill development project
Amortization of preliminary expenses, amortization in case
of amalgamation or demerger
Deductions under section 36 of Income Tax Act,1961
General Deductions under section 37
Provisions of section 44A, 44AA, 44AB, 44AD, 44AE,
44B, 44BB,
Undisclosed Income/Investments under section 68, 69,
69A, 69B,69C

Income under the Head “Capital Gains”
Meaning of Capital Gain and Basis of charge (Section 45
and sub sections)
Capital Gain on distribution of assets by companies on
liquidation (section 46)
Transactions not regarded as transfers
Computation of Capital Gains (section 48)
Deemed cost of acquisition (section 48)
Computation of capital gain in case of depreciable assets
(section 50)
Provisions of section 51, 54, 54B, 54D, 54EC, 54F, 54G,
54GA, 54GB, 54H
Cost of improvement and cost of acquisition
Provisions of section 111A, 112, 115F, 115I.