#section #incometaxact #law #llb #notes #govt Section 75

#section72A #incometaxact #carryforward #accumulatedloss #depreciation Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc. Carry Forward of Business Loss and Unabsorbed Depreciation as per Section 72A: Section 72A allows carry forward of business loss and unabsorbed depreciation in case of: amalgamation of a company [Section 72A(1), (2) and (3)], or If certain requirements listed in secti

#section72 #incometaxact #carryforward #businesslosses Section 72(1) Where for any assessment year, the net result of the computation under the head “Profits and gains of business or profession” is a loss to the assessee, not being a loss sustained in a speculation business, and such loss cannot be or is not wholly set off against income under any head of income in accordance with the provisions of section 71, so much of the loss as has not been so set off or, where he has no

#section71B #incometaxact #carryforward #loss #houseproperty A loss under the head house property can be set off against any income generated in the year it is incurred. If the consequence of such a set off is a loss, the loss can be carried forward for up to eight assessment years. This loss can be carried forward to later years only against house property revenue and not against any other source of income. If the assessee suffers a dwelling property loss in any Assessment Y

#section71A #setoff #income #incometaxact #houseproperty SET OF LOSSES To set off losses is to compare the losses to the revenue or profit for that specific year. Losses that aren't offset against income in the current year can be carried over to the following years to be offset against income in those years. An inter-head set-off or an intra-head set-off can occur during a set-off. Intra-head Set Off The losses from one source of income can be set off against income from ano

#section54E #incometaxact #capitalgain #capitalassets According to section 54EB of the Income Tax Act of 1961, capital gain on the transfer of long-term capital assets not to be charged in certain cases. There are three clauses in this section. First Clause First clause states that When the capital gain results from the transfer of a long-term capital asset [prior to the 1st day of April, 2000] (the capital asset so transferred being referred to in this section as the origina

#section54D #capitalgain #incometaxact #acquisition The Income Tax Act of 1961, Section 54D, exempts from taxation capital gains that result from the forced acquisition of land, a building, or any right in land or a building (the original asset) that belonged to an industrial undertaking under any capital asset regulation. The section was introduced to give the relief to those taxpayers who has to pay tax on capital gain arises upon compulsory acquisition of their land or bui

#Incometaxact #incometax #carryforward #setoff #sec78 #sec78incometaxact The Income Tax Law does acknowledge the necessity of offsetting a loss from one year against income from another year before determining the assessor's "total income," on which tax is due. However, subject to meeting certain requirements and restrictions as laid down in the Act, such losses are permitted to be carried forward and set off. Contrary to popular belief, not all losses can be used to offset i

#section54B #incometaxact #capitalgain #agriculturalpurposes There are various sections in the Income Tax Act that permit taxpayers to avoid making tax payments. One such example is Section 54B of the Income Tax Act. According to this Section, certain conditions must be met in order for capital gains from the sale of agricultural land to qualify for tax exemption. Rural agricultural land does not qualify as a capital asset and is therefore exempt from capital gains taxes. Urb

#section54 #incometaxact #residentialproperty #capitalgains #eligibility The sale of a residential property is exempt from capital gains tax under Income Tax Act Section 54. According to the clause, taxpayers are only eligible for exemption from capital gains tax if they use the sale profits to buy another residential property. Residential property owners frequently sell their homes in order to buy new ones for a variety of reasons, including job transfers, retirement, and so

#section23 #incometaxact #annualvalue According to section 23(1), the Annual Value of any property is the amount for which it might be expected to be rented on a yearly basis. Neither the actual rent received nor the property's municipal valuation may be the cause. It is comparable to the hypothetical rent that may have been earned had the property been rented. Four criteria are often taken into account when estimating the annual value. Which are: Actual Rent Received or Rece

#section22 #incometaxact #houseproperty #income "Income from home property" refers to any income derived from a residential property, whether it comes from a rental income or a sale of the property. In essence, under the Income Tax Act, any property, including a house, a building, an office, or a warehouse, is considered "house property." One of the five heads of income considered in determining an assessee's gross total income (GTI) for the year is "Income from House Propert

#section35CCB #incometaxact #taxationact #expenditure #paymenttoinstitutions #paymenttoassociations #conservationofnaturalresources #naturalresources #conservation #taxlaws As per sub-section (1) of the Section 35CCB, when an assessee incurs expenditure on or before 31st March 2002, by making a payment of any sum:- (a) To an institution or an association whose object is to undertake any program for the conservation of natural resources or afforestation, to be used for carryi

#section17 #incometaxact #salary #prequisite Three clauses are covered in this section. Clause 1: According to Section 17(1) of the Income Tax Act, salary in the preceding year includes wages, any salary advances, any fee, commission, perquisites, profits in place of or in addition to the pay/wage, etc. Furthermore, an employer-employee relationship is a necessary need before taxing a specific receipt under the heading "Salaries." It won't be considered a wage, for example, i

#section35cca #incometaxact #taxationact #expenditure #paymentoassociations #institutions #ruraldevelopment #paymenttoinstitutions Subsection (1) of Section 35CCA of the Income Tax Act, 1961 states that when an assessee incurs any expenditure by making payment of any sum:- (a) To any institution or association whose object is to undertake any rural development programme and the sum is used to carry out such rural development programme approved by the prescribed authority; or

#section16 #incometaxact #deductions #salaries The Income Tax Act of 1961, Section 16, allows for a deduction from income subject to tax under the heading "salaries." It offers deductions for professional taxes, entertainment expenses, and the standard deduction. A salaried taxpayer can reduce their taxable salary income that is subject to tax by using this deduction. Before your net taxable income, Section 16 of the Income Tax Act is applicable. As a result, before determini

#section35AD #incometaxact #incometaxact1961 #deductionsintax #specificbusiness #expenditure Section 35AD of the Income Tax Act, 1961 relates to the deduction when the expenditure is made on the specified business. As per its first subsection, when an assessee makes a capital expenditure exclusively and wholly for any specified business that he carries on during the previous year in which the expenditure has been incurred, then in such a case, the assessee would be eligible f

#INCOMETAXACT #SECTION44BBA #PROFIT #GAIN #AIRCRAFTS #NONRESIDENTS Despite anything to the contrary stated in Sections 28 to 43A, a sum equal to 5% of the total of the amounts specified in Subsection (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" in the case of an Assessee who is a Non-Resident engaged in the business of operating aircraft. The following sums are those mentioned i

#INCOMETAXACT #SECTION44BB #SECTION28 #SECTION41 #SECTION43 #PROFITS #GAINS #EXPLORATION #MINERALOILS Despite anything to the contrary in sections 28 to 41 and sections 43 and 43A, in the case of an assessee 47, being a non-resident, engaged in the business of offering services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, extraction from, or production of, mineral oils, a sum equal to 10% of the total

#INCOMETAXACT #SECTION44B #SECTION28 #SECTION43A #PROFIT #GAINS #SHIPPINGBUSINESS #NONRESIDENTS Despite anything to the contrary stated in sections 28 to 43A, a sum equal to 7.5 per cent of the total of the amounts specified in subsection (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession" in the case of an assessee who is a non-resident engaged in the business of operating ships. The