The incometax act, 1961 is the changing statute of income tax in india. Section 112a 10% longterm capital gains tax on sale of. Students taking ca intermediate ca ipcc exams or students preparing for taxation will find the file very useful. What is section 642 of the income tax act, 1961 gulab. Section 203 of the incometax act 1961 the act read. The term total income has been defined in section 2 45 of the it act and it means the total amount of income referred to in section 5, computed in the manner laid down in the incometax act.
Be it enacted by parliament in the twelfth year of the republic of india as follows. Section 111a of income tax act tax on shortterm capital gains in certain cases section 111a. Summons to assessee under section 11a of the income. The proviso to this clause provides that any approval. The excellent download file is in the format of pdf. The defaulter, if convicted, can be sentenced to rigorous imprisonment ri for a term which can extend up to seven years. These powers must be exercise drastically for the purposes set out in section 11 ofread more. As per section 153a of income tax act, if the assessment has been made under section 1431 only, then further addition are not permitted until and unless they are not backed by incriminating material if assessment under section 1431 has not. Section 87a of the income tax act was introduced in finance act, 20. Further as per clause vi of subsection 5 of section 80g of the incometax act, 1961, the institutions or funds to which the donations are made have to be approved by the commissioner of incometax in accordance with the rules prescribed in rule 11aa of the incometax rule, 1962. Rules similar to the rules of subsection c2 shall apply for purposes of this.
Income tax act 1961 complete act citation 530 bare. Rebate of incometax in case of individuals of sixtyfive years or above omitted. Analysis of section 111a, 112 and 112a of the income tax act, 1961 in this article we shall discuss only about shares, debentures, units of mfs, units of business trust only. Section 17, incometax act, 1961 2015 salary, perquisite and profits in lieu of salary defined. Where, in the case of an individual being a member of a hindu undivided family, any property having been the separate property of the individual has, at any time after the 31st day of december, 1969, been converted by the individual into property belonging to the family through the act of impressing such separate property with the. Section 192 salary incometax act, 1961 x x x x extracts x x x x notification no. Section 1201 and 2 of the incometax act, 1961 jurisdiction of incometax authorities. Income of local authorities section 1020 income tax income of local authorities section 1020. Section 10 exemptions under section 10 of income tax act. Subsection 1b provides that, for the purpose of paying tax by the employer under subsection 1a, tax shall be determined at the average of incometax computed on the basis of the rates in force for the financial year, on the income chargeable under the head salaries including the income referred to in subsection 1a i. Repeal of taxexempt status for certain organizations providing commer. The section deals with the taxation of longterm capital gains on the sale of equities and certain securities.
Brief analysis of section 111a, 112 and 112a of income tax. The government notifies share transactions on which. The income tax act, each section caters to certain part of income tax law or rule. Issuance of certificate for tax deducted at source in form no. Form for obtaining incometax clearance certificate under. Amendment in section 192a of the income tax act, 1961. Income of local authorities section 1020 income tax. The income tax department can issue summons under section 11a which gives powers given to the incometax authorities under section 11 are powers of the court of law. Any income derived from a capital asset movable or immovable is taxable under the head capital gains under income tax act 1961.
The section 111a of the income tax act 1961, lays down the provision for tax deduction rate for short term capital gains. Tax reform act of 1976 joint committee on taxation. Tax deducted at source is the first way of collecting taxes. According to section 10 of the income tax act 1961, the salaried employees are entitled to enjoy the tax exemption. Income tax dept has mentioned so many times on wrong calculation of hra by employees while submitting the returns. Section 87a is one of the many sections of the income tax act. If a person yields profit resulting out of transactions of capital assets within 36 months or shares and securities within one year of their respective possession, then such gains are. Usc02 26 usc subtitle a, chapter 1, subchapter o, part ii. Section 209 computation of advance tax incometax act, 1961. Section 11 and 12 of income tax act 1961 both section are covered under income which do not form part of total income section 11 section 11 tax exemption after consider provisions of section 60 to 63, the income of a religiouscharitable trustinstitutions, to the extent specified in the act, is exempt from tax after fulfill certain conditions. Tax utilities authorities for disclosure of information. Section 115a of income tax act 1961 tax on dividends, royalty and technical service fees in the case of foreign companies is defined under sections 115a of income tax act 1961.
India the income tax act 1961 section 11 income from property held for charitable or religious purposes. The newly introduced provisions of section 12aa of the act provides for a procedure to be followed for grant of registration to a trust or institution. Section 28 of income tax act 19612017 provides special provision for profits and gains of business or profession. Income tax treatment of nonresident alien individuals. The registration of the document mentioned against item no. One is short term capital gain and other is long term capital gain. Section 1 of the income tax act, 1961 gives power to tax authorities to issue summons or to force attendance of any person for being examined on oath or to compel production of books of account and other documents if any proceeding is pending. Repeal of special life insurance company deduction. It provides for levy, administration, collection and recovery of income tax. Article explains with examples tax on long term capital gains on sale of listed equity share in a company or on unit of an equity oriented fund in view of recent amendment proposed vide union budget 2018 by proposing amendment in section 112a of the income tax act, 1961 the proposed new section 112a provides that where the total income of an assessee, includes any income chargeable under the.
Both sections covers following long term capital asset. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Notification on section 197a of the income tax act, 1961. Taxability of short term capital gains section 111a analyzed. Chapter iv sections 1459 of income tax act, 1961 deals with provisions related to computation of total income. The section empowers the assessing officer if, having regard to the accounts of the company, he is not satisfied with correctness of amount disallowed by the company under this section. In exercise of the powers conferred by subsections 1 and 2 of section 120 of the incometax act, 196i 43 of 1961, the central board of direct taxes hereby directs that chief commissioner specified in column 2 of the schedule below, having his headquarters at the. While exercising these powers, the incometax authorities act in a quasijudicial capacity. Deduction of tds on withdrawal from provident fund regarding. Thus when amounts are taxed under section 11 3 the benefit which would have been available to a trust in respect of 25 per cent of its income or rs.
For purposes of this section, the terms specified security and applicable date shall. The finance act, 2018 has introduced a new section 112a in the income tax act, 1961 the act which provides for taxation of longterm capital gains arising from transfer of a longterm capital asset being listed equity shares or equity oriented mutual fund or a unit of a business trust at the rate of 10%, if such capital gains exceeds inr 100,000. X x x x extracts x x x x ection 1 of section 142 forms the basis of computation of advance tax, if the total income of any member of the family for the assessment year relevant to such previous year exceeds the maximum amount not chargeable to incometax in his case. Assessment under section 153a of income tax act, 1961. Be aware of disallowance under section 14a of income tax. Income tax shall be deducted at source tds at the following rates if at the time of payment of the accumulated pf balance is more than or equal to rs. Section 642 of the incometax act, 1961 reads as follows. Longterm gains arising from the sale of listed equity shares were exempt us 1038. Section 209 computation of advance tax incometax act. Hence let us discuss the calculation of house rent allowance exemption in income tax as per income tax act 1961, section 10a, read with rule 2a of income tax rules 1962.
Section 195 of the income tax act, 1961, is basically concerned about the tax deducted at source tds for the nonresident people of india. Hra exemption rule as per income tax act section 10a. As per the finance act, 2012, incometax is required to be deducted under section 192 of the incometax act 1961 from income chargeable under the head salaries for the financial year 2012 i. The finance bill 2018, introduced a new section, sec. The government of india brought a draft statute called the direct taxes code intended to replace the income tax act,1961 and the wealth tax act, 1957. The income tax act, 1961 provides for levy, administration, collection and recovery and income tax in india. Section 2a under powers of incometax authorities sections 1 to 6 income tax introduction of capital asset as capital contribution section 453 under scope and year of chargeability section 45 income tax. Further addition in the assessments under section 153a of income tax act, 1961 is overruled if it does not contain incriminating materials. The capital gains have been divided in two parts under income tax act 1961. Both sections determine tax on long term capital gains and falls under chapter xii of the income tax act, 1961. Section 112a of the income tax act, 1961 states that long term capital gains on sale of equity shares or units of equity oriented fund will be taxed at 10% in excess of. Section 14a of the income tax act, 1961 provides for disallowance of expenditure incurred in relation to exempt income.
This section basically highlights the tax rates and deductions related to all business transactions. The objective of section 10 of the income tax act is to reduce the burden of the different structure of the tax such as rent allowance, allowance for children education, travel allowance, gratuity and so on. Summary of sections income tax act 1961 is available for download at the excellent download file is in the format of pdf. Section 35ad, incometax act, 1961 2015 86deduction in respect of expenditure on specified business. As per section 225a of the income tax act, 1961, unless the context otherwise requires, the term india means the territory of india as referred to in article 1 of the constitution, its territorial waters, seabed and subsoil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the territorial waters, continental shelf, exclusive. Such retention of government dues beyond the due date is an offence liable for prosecution under section 276b of the income tax act, 1961. Section 360 of the code of criminal procedure, 1973, and the probation of offenders act, 1958, not to apply.