INCOME TAXShankar Bose

Inspector of Income-taxMSTU, Puri

IMPORTANT DEFINITIONS:

1. ASSESSEE 2(7) Assessee means a person by whom any tax or any other sum of money is payable under this Act and includes,

a. every person in respect of whom any proceedings under this Act has been taken

b. Deemed assessee or representative assessee

c. Assessee –in- default

PERSON 2(31)Person includes:• an individual• a HUF• a Company• a Firm• an AOP/ BOI • a local authority•Every artificial juridical person

ASSESSMENT YEAR 2(9)

Assessment year means the period of 12 months commencing on the 1st day April every year and ending on 31st march in the following year.

PREVIOUS YEAR 3

It is the financial year immediately preceding the Assessment year.

EXCEPTIONS:

1. Shipping business of non resident co.

2. Persons leaving India.

3. Business for a limited period

4. In case of discontinued business

5. Transfer of assets

INCOME 2(24)It means something which comes in. It is a periodical return with regularity or expected regularity.

FEATURES• Definite source • Income must come from outside• Tainted income• Diversion of income Vs application of income• Temporary or permanent• Voluntary receipts • Disputes regarding title• Income is money or money’s worth• Gift to constitute income

TYPES OF INCOMES

A 1. Taxable income 2. Exempted incomes

3. Rebateable incomes u/s 86

B 1. Gross total income

2. Taxable/Total income

ROUNDING OFF: OF INCOME u/s288A

OF TAX u/s 288B

COMPUTATION OF TAX

1. INCOME FROM SALARIES XXXX

2. INCOME FROM HOUSE PROPERTY XXXX

3. INCOME FROM BUSINESS/PROFESSION XXXX

4. INCOME FROM CAPITAL GAINS XXXX

5. INCOME FROM OTHER SOURCES XXXX

GROSS TOTAL INCOME XXXXX

DEDUCTIONS U/S 80 XXX

TAXABLE INCOME XXXXX

COMPUTATION OF TAXTax on short term shares (STT) @ 10% XXXTax on L.T Capital assets @ 20% XXXTax on Casual Incomes @ 30% XXXTax on other incomes** XXX TOTAL TAX XXX LESS: Rebate u/s 88E XX TAX PAYABLE XXXADD: surcharge @ 10% XXXADD: Education cess @ 3% XXX TOTAL TAX XXXLESS: Tax Relief u/s 86-89 XXX Advance Tax /TDS paid if any XXX BALANCE OF TAX PAYABLE XXXX

TAX RATES for AY 08-09

MALEINCOME ( Rs. ) RATE O-1,10,000 nil 1,10,001-1,50,000 10% 1,50,001-2,50,000 20% exceeding 2,50,000 30%

FEMALE O-1,45,000 nil 1,45,001-1,50,000 10% 1,50,001-2,50,000 20% exceeding 2,50,000 30%

SENIOR CITIZEN O-1,95,000 nil 1,95,001--2,50,000 20% exceeding 2,50,000 30%

INCIDENCE OF TAX FOR DIFFERENT STATUS

INCOME ROR RNOR NR

Income earned in India taxed taxed taxed

Income received in India taxed taxed taxed

Income earned & recd outside India from a business (profess) set

up/controlled in India

taxed taxed Nottaxed

Income earned & recd outside India from business/any other source

taxed Nottaxed

Nottaxed

Income earned & recd outside India of earlier PYs but remitted to India

in RPY

Not taxed

Not taxed

Nottaxed