Taxation-I

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.

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

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

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 assessee
 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

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.