Chapter 1

Basic Concepts

1.     Constitutional Validity of Taxes

2.     Previous Year [Sec. 3]

3.     Assessment Year [Sec. 2(9)]

4.     Person [Sec. 2(31)]

5.     Individual

6.     Hindu Undivided Family (HUF)

7.     Tax point:

8.     Company [Sec. 2(17)]

9.     Indian Company [Sec. 2(26)]

10. Domestic Company [Sec. 2(22A)]

11. Foreign Company [Sec. 2(23A)]

12. Company in which public are substantially interested [Sec. 2(18)]

13. Firm

14. Taxpoint:

15. Association of Persons (AOP) or Body of Individuals (BOI)

16. Difference between AOP and BOI

17. Local Authority

18. Artificial Juridical Person

19. Test Yourself

20.  Assessee [Sec. 2(7)]

21. Deemed Assessee

22. India [Sec. 2(25A)]

23. Income for Income-Tax Purpose

24. Hindu Undivided Family

25.  Hindu Co-parceners

26. Schools of Hindu Law

27. Computation of Total Income

28. Method of Accounting for Heads of Income

29. Tax Rate [AY 2024-25]

30. Surcharge

31. Special Rates of Income Tax

32. Rebate [Sec. 87A]

33. Rounding off of Income [Sec. 288A]

34. Rounding off of Tax [Sec. 288B]

35. Marginal Relief

(1)  Individual/HUF/AOP/BOI/Artificial Juridical Person

(2)  Firm/LLP

(3)  Domestic Company/Foreign Company/Co-operative Societies

36. When income of Previous Year is not taxable in the immediately following Assessment Year:

37. Previous Year for undisclosed sources of income

38. Taxation of Cash Credits, Unexplained Money, Investments, etc. [Sec. 115BBE]

39. Heads of Income Vs. Source of Income

40. Exemption Vs. Deductions

41. Application of Income Vs. Diversion of Income

42. Subsidy or grant or cash incentive, duty drawback etc. deemed to be income [Sec.2(24)(xviii)]

43. Average Rate of Tax [Sec. 2(10)]

44. Marginal Rate of Tax [Sec. 2(29C)]

45. Difference between Tax Planning, Tax Avoidance, Tax Evasion & Tax Management

Multiple Choice Questions (MCQS)

Unsolved Exercise

Chapter 2

Residential Status

1.     Different Taxable Entities

2.     Residential Status

3.     General points to be kept in mind regarding residential status of a person

4.     Rules to determine Residential Status of an Individual

(1) Basic Conditions to test when an Individual is said to be Resident in India [Sec. 6(1)]

(2) Indian Citizens to be considered as deemed resident of India [Sec. 6(1A)]

(3) Additional Conditions to test when a Resident Individual is said ordinarily Resident in India [Sec. 6(6)]

(4) Resident but not Ordinarily Resident

(5) Rules to determine Residential Status of an HUF [Sec. 6(2)]

(6) When a Resident Hindu Undivided Family is Ordinarily Resident in India

(7) When a Resident Hindu Undivided Family is not Ordinarily Resident in India

(8) Rules to determine residential status of Companies [Sec. 6(3)]

(9) Rules to determine residential status of Firm, AOP, BOI [Sec. 6(2)] or any other person [Sec. 6(4)]

5.     Relationship between residential status and incidence of tax

6.     Type of Income

(1) Indian Income

(2) Foreign Income

7.     Incidence of tax for different taxpayers

Multiple Choice Questions (MCQs)

Unsolved Exercise

Chapter 3

Exempt Income

1.     Incomes which do not form part of Total Income

2.     Incomes not to be included in Total Income of any person [Sec. 10]

(1)    Agricultural Income [Sec. 10(1)]

(2)    Examples of Agricultural income and Non-agricultural income

(3)    Disintegration of income which is partially Agricultural and partially from Business

(4)    Scheme of partial integration of non-agricultural income with agricultural income for tax computation

(5)    Computation of Tax

(6)    Sum received by a Member from HUF [Sec. 10(2)]

(7)    Share of Profit of a Partner from a Firm [Sec. 10(2A)]

(8)    Allowances or perquisites outside India [Sec. 10(7)]

(9)    Exemption for compensation received or receivable on account of any disaster [Sec. 10(10BC)]

(10)  Amount received under a Life Insurance Policy [Sec. 10(10D)]

(11) Payment from Statutory or Public Provident Fund [Sec. 10(11)]

(12) Exceptions

(13) Payment from Recognised Provident Fund [Sec. 10(12)]

(14) Exceptions

(15) Payment from Sukanya Samriddhi Account Scheme [Sec. 10(11A)]

(16) Payment from National Pension Trust [Sec. 10(12A) & 10(12B)]

(17) Exemption in case of Income by way of Interest [Sec. 10(15)]

(18) Scholarships granted to meet the Cost of Education [Sec. 10(16)]

(19) Daily and Constituency allowance, etc. received by MPs and MLAs [Sec. 10(17)]

(20) Award or Reward [Sec. 10(17A)]

(21) Income of a Local Authority [Sec. 10(20)]

(22) Income of an approved Research Association [Sec. 10(21)]

(23) Income of specified News Agency [Sec. 10(22B)]

(24) Income of Prasar Bharti [Sec. 10(23BBH)]

(25) Income of Educational Institutions [Sec. 10(23C)]

(26) Income of Hospital [Sec. 10(23C)]

(27) Income of Swachh Bharat Kosh & Clean Ganga Fund [Sec. 10(23C)]

(28) Any income of Venture Capital Company or Venture Capital Fund from investment in a Venture Capitaundertaking [Sec. 10(23FB)]

(29) Income of Trade Union [Sec. 10(24)]

(30) Income of ‘Sikkimese’ Individual [Sec. 10(26AAA)]

(31) Exemption of amount received by an individual as loan under reverse mortgage scheme [Sec. 10(43)]

(32) Income received by certain foreign companies [Sec. 10(48)]

3.     Deduction under Section 10AA

Multiple Choice Questions (MCQs)

Chapter 4

Salary

1.     Relationship of the Receiver with Payer

2.     Taxability of Salary

3.     Employer includes

4.     More than one Employer

5.     Basis of Charge [Section 15]

6.     Advance Salary vs Advance against Salary

7.     Salary due or received in foreign currency

8.     Computation of salary in the grade system

9.     TDS on Salary Vs. Tax free Salary

10. Performa of computing taxable income from Salary

11. Leave Salary [Sec. 10(10AA)]

12. Foregoing of Salary

13. Surrender of Salary

14. Gratuity

15. Pension

16. Tax treatment of Pension in other cases

17. Retrenchment Compensation [Section 10(10B)]

18. Compensation on Voluntary Retirement [Section 10(10C)]

19.  House Rent Allowance [Section 10(13A)]

20. Entertainment Allowance

21. When Exemption Depends Upon Actual Expenditure by the Employee

22. When Exemption does not depend upon Expenditure

23. Other Allowances

24. Perquisite

25.  Definition as per section 17(2)

26. Valuation of Perquisites

27. Where the accommodation is furnished

28. Where the accommodation is provided by the employer (Government or other employer) in a hotel

29. Valuation of Motor Car

30. Valuation of Leave Travel Concession in India

31. Medical Facilities in India

32. Medical Facilities Outside India

33. Other Perquisite

34. Tax Treatment of Approved Superannuation Fund

35. Insurance premium payable by employer [Sec. 17(2)(v)]

36. Cost of acquisition in case of shares/debentures received under ESOP [Sec. 49(2AA)]

37. Tax on ESOP of start-ups to be paid after 5 years of exercising the Option

38. Any other benefit, amenity, etc.

39. Advance Salary

40. Arrear Salary

41. Relief when Salary is paid in Arrears or in Advance [Section 89(1)]

42. Provident Fund

43. What are permissible deductions from salary income [Sec. 16]

Multiple Choice Questions (MCQs)

Unsolved Exercise

Chapter 5

House Property

1.     Charging Section [Sec. 22]

2.     Property Held as Stock-in-Trade [Sec. 23]

3.     House Property income not charged to tax

4.     Computation of Income from House Property

5.     Computation of Gross Annual Value (If property is Deemed Let out)

6.     Taxes levied by local authority (Municipal Tax) [Proviso to Sec. 23(1)]

7.     Interest on Borrowed Capital

8.     Pre-Construction Interest

9.     Current Period Interest

10. Interest on Borrowed Capital in case of Self Occupied Property

11. Tax incidence on Self-occupied House Property

12. Taxability of Unrealized Rent Subsequently Realized and Arrears of Rent [Sec. 25A]

13. Property owned by Co-owners [Sec. 26]

14. Rent Received/ Receivable in Foreign Currency

15. Composite Rent

Multiple Choice Questions (MCQs)

Chapter 6

Profits & Gains from Business or Profession

1.     Basis of Charge [Sec. 28]

2.     Income not taxable under the head Profit and gains of business or profession

3.     Meaning of Profession or Vocation

4.     Illegal Business

5.     Specific deductions under the Act

6.     Rent, Rates, Taxes, Repairs and Insurance for Building [Sec. 30]

7.     Relevant Case Laws

8.     Repairs and Insurance of Machinery, Plant and Furniture [Sec. 31]

9.     Depreciation Allowance [Sec. 32]

(1) Condition for allowance of Depreciation

(2) Asset should be owned by Assessee

(3) Asset must be used for the purpose of Business or Profession

(4) Important terms for computation of Depreciation Allowance

10. Block of Assets [Sec. 2(11)]

11. “Actual Cost” [Sec. 43(1)]

12. Written Down Value [Sec. 43(6)]

13. No Depreciation shall be allowed in the following case:

14. Depreciation allowance is limited to 50% of normal depreciation

15. Treatment of Trial Run Expenses and Income earned during Trial Run Period

16. Treatment of Currency Exchange Fluctuation

17. Input Tax Credit Adjustment

18.  Computation of Additional Depreciation [Sec. 32(1)(iia)]

19. Manufacture/ Production of any article

20. New Plant and Machinery installed and acquired

21. Eligible Plant and Machinery

22. Taxpoint

23. Residential Quarters

24. Depreciation in the case of succession or amalgamation or business re-organisation or demerger

25. Unabsorbed Depreciation [Sec. 32(2)]

26. Set-off and Carry-forward of Depreciation (i.e., Unabsorbed Depreciation)

27. Assets partly used for business purposes [Sec. 38]

28. Assets used partly for Business & partly for Agricultural purposes

29. Depreciation on Straight-Line Basis in the Case of Power Units [Sec. 32(1) (i)]

30. Terminal Depreciation (i.e., Loss on Transfer) or Balancing Charge (in the Case of Gain) in the Case of PoweUnits

31. Terminal Depreciation

32. Balancing charge under section 41(2) and capital gain under section 50A

33. Scientific Research Expenditure [Sec. 35]

34.  Deduction in respect of expenditure on specified business [Section 35AD]

35. Deduction

36. Other Provisions

37. Deduction in respect of Expenditure on Agricultural Extension Project [Sec. 35CCC]

38.  Deduction in respect of Expenditure on Skill Development project [Sec. 35CCD]

39. Amortisation of Preliminary Expenses [Sec. 35D]

40. Qualifying Expenditure

41. Qualifying Amount of Expenditure

42. Amount of Deduction

43. Ammortisation of Expenditure in the case of Amalgamation/ Demerger [Sec. 35DD]

44. Expenditure incurred under voluntary retirement scheme [Sec. 35DDA]

45. Provision of Bad and Doubtful Debt of Bank [Sec. 36]

46. Insurance premium [Sec. 36(1)(i)]

47. Insurance premium paid by a federal milk co-operative society [Sec. 36(1)(ia)]

48. Premia for insurance on health of employees [Sec. 36(1)(ib)]

49.  Bonus or Commission to Employees [Sec. 36(1)(ii)]

50. Interest on Borrowed Capital [Sec. 36(1)(iii)]

51. Discount on Zero Coupon Bonds [Sec. 36(1)(iiia)]

52. Zero Coupon Bonds

53. Employer’s contribution towards Statutory Fund [Sec. 36(1)(iv)] & [Sec. 36(1)(v)]

54. Employee’s contribution towards staff welfare schemes [Sec. 36(1)(va)]

55. Write off of allowance for animals [Sec. 36(1)(vi)]

56.  Bad Debts [Section 36(1)(vii)]

57.  Bad Debt recovery [Sec. 41(4)]

58. Relevant Case Laws

59. Family Planning Expenditure [Sec. 36(1)(ix)]

60. Securities Transaction Tax [Sec. 36(1)(xv)] & Commodities Transaction Tax (Sec. 36(1)(xvi)]

61. Purchase of Sugarcane [Sec. 36(1)(xvii)]

62. General Deduction [Sec. 37(1)]

63. Corporate Social Responsibility (CSR) expense not deductible

64. Circular No. 5/2012 dated 01.08.2012

65. Advertisement Expenses [Sec. 37(2B)]

66. Specific disallowances under the Act

67.  Due date of Deposit of TDS

68. Consequences if tax is deposited subsequently

69. First Proviso to Sec. 201(1)

70. Compliance of TDS provisions in case of a Resident [Sec. 40(a)(ia)]

71. Income Tax [Sec. 40(a)(ii)]

72. Salary Payable Outside India Without Tax Deduction [Sec. 40(a)(iii)]

73.  Maximum Permissible Remuneration to Partner in Firm [Sec. 40(b)]

74. Computation of Book Profit for Remuneration u/s 40(b)

75. Maximum Permissible Interest on Capital to Partner in Firm [Section 40(b)]

76. Tax treatment in the hands of Partners

77. Amounts not deductible in respect of excessive payment to relative [Sec. 40A(2)]

78. Specified Person Referred to in Section 40A(2)

79. Amounts not deductible in respect of expenditure exceeding ` 10,000* [Sec. 40A (3)]

80. Exceptions [Rule 6DD]

81. Expenses Deductible on Payment Basis (Sec. 43B)

82. Full Value of Consideration in respect of Transfer of Immovable Property held as Business Asset [Sec. 43CA]

83. Restriction on Accepting Loan [Sec. 269SS]

84.  Restriction on Repaying Loan [Sec. 269T]

85. Restriction on Receipt of Cash exceeding ` 2 lakh [Sec. 269ST]

86. Maintenance of Books of Account [Sec. 44AA]

87. Tax Audit [Sec. 44AB]

88. Due date for getting books audited and form no. of Audit Report

89. Presumptive Taxation

(1) Computation of income on estimated basis in the case of taxpayers engaged in any business except thbusiness of plying, hiring or leasing goods carriage [Sec. 44AD]

90. Computation of income on estimated basis for Professionals [Sec. 44ADA]

91. Computation of income on estimated basis in the case of taxpayers engaged in the business of plying, leasing ohiring goods carriage (Sec. 44AE)

92. Special Provisions for Computing Profits & Gains for Non-Residents

93. Method of Valuation of Stock [Sec. 145A]

Multiple Choice Question (MCQs)

Unsolved Exercise

Chapter 7

Capital Gains

1.     Basis of Charge [Sec. 45(1)]

2.     Capital Asset [Sec. 2(14)]

3.     Period of Holding

4.     Period of holding applicable to different assets

5.     Capital asset must have been transferred

6.     Transactions not regarded as transfer:

7.     Benefit of indexation is not available in the case of following Long-term Capital Asset

8.     Capital gains exempt from tax under Section 10

9.     Full Value of consideration [Sec. 48]

10. Expenditure on Transfer

11. Cost of Acquisition

12.  Cost of Acquisition being the Fair Market Value as on April 1, 2001

13. Cost of acquisition and improvement in case of Self-Generated Assets [Sec. 55]

14. Advance Money Received & Retained [Sec. 51]

15. Fair market value to be the full value of consideration where consideration cannot be determined [Sec. 50D]

16. Cost Inflation Index

17. Capital gain on transfer of equity share allotted at time of corporation or demutualization of a recognized stocexchange.

18. Bonus Shares

19. Right Shares

20. Capital gains in the case of non-resident [First proviso to Sec. 48]

22. Unit linked Insurance Policy Receipts [Sec. 45(1B)]

23. Capital gain on conversion of capital asset into stock-in-trade [Section 45(2)]

24. Capital gain in case of Joint Development Agreement

25. Capital gain on transfer of capital asset by a partner/member of AOP/BOI as capital contribution [Sec. 45(3)]

26. Capital gain on transfer of a capital asset by way of distribution on the dissolution of a firm, AOP/BOI [Sec45(4)]

27. Distribution of stock in trade amongst partners at the time of dissolution [Sec. 45(4)]

28. Capital Gain on Transfer by way of compulsory acquisition of an asset [Sec. 45(5)]

29. Where right to receive the compensation is in dispute [Section 45(5)]

30. Capital gains on distribution of assets by companies in liquidation [Sec. 46]

31. Capital gain on purchase by a company of its own shares/securities [Sec. 46A]

32. Transfer of security in Demat Form [Sec. 45(2A)]

33. Insurance claim received for damage or destruction of capital asset is treated as capital gain [Sec. 45(1A)]

34. When Sec. 45(1A) is not Applicable i.e. damage is not a result of 4 categories given above:

35. Computation of capital gains in the case of land and building [Sec. 50C]

37. Full value of consideration for transfer of share other than quoted share [Sec. 50CA]

38. Employee Stock Option Plan (ESOP) [Sec. 49(2AA)]

39. Computation of Capital Gain

40. Capital Gain on Virtual Digital Assets [Sec. 115BBH r.w.s. 2(47A)]

41. Computation of income on transfer of such assets

42. Exemptions available in the computation of Capital Gain

43. Tax on LTCG from of Unlisted Securities [Sec. 112(1)(c)]

44. Tax on Long term Capital gain [Sec. 112A] & short-term capital gain [Sec. 111A] chargeable to STT

45. Investment under section 54EC

Multiple Choice Questions (MCQs)

Chapter 8

Income from Other Sources

1.     Basis of Charge [Sec. 56]

2.     Other incomes which are normally included under the head ‘Income from other Sources’

3.     Deemed Dividend [Sec. 2(22)]

4.     Summary

5.     Casual Income: Winning from lotteries, crossword puzzles, etc. [Sec. 56(2)(ib)]

6.     Interest on Securities [Sec. 56(2)(id)]

7.     Avoidance of tax by certain transaction in securities (also known as Bond Washing Transaction) [Sec. 94]

8.     Grossing Up

9.     Deductions for expenses from Interest on Securities [Sec. 57]

10. Interest exempt from tax [Sec. 10(15)]

11. Income from letting out of machinery, plant or furniture [Sec. 56(2)(ii)]

12. Income from composite letting of machinery, plant or furniture and buildings [Sec. 56(2)(iii)]

13.  Receipts without consideration to be treated as income [Sec. 56(2)(x)]

14. Receipt of sum of money/property without consideration or for inadequate consideration should fall in any othe following categories:

15. Exempted Categories

16.  Other Relevant Points

17. Share Premium in excess of fair market value [Sec. 56(2)(viib)]

18. Tax point

19. Exceptions

20. Proviso Illustrated:

21. Family pension payments received by the legal heirs of a deceased employee

22. Amounts not deductible in computing income under the head ‘Income from Other Sources’ [Sec. 58]

Multiple Choice Question (MCQs)

Unsolved Exercise

Chapter 9

Clubbing of Income

1.     Income transferred without transfer of assets [Sec. 60]

2.     Revocable transfer of assets [Sec. 61]

3.     Income from assets transferred to spouse [Sec. 64(1)(iv)]

4.     Income from assets transferred to son’s wife [Sec. 64(1)(vi)]

5.     When an individual is assessable in respect of income from assets transferred to a person for the benefit ospouse [Sec. 64(1)(vii)]

6.     When an individual is assessable in respect of income from assets transferred to a person for the benefit oson’s wife [Sec. 64(1)(viii)]

7.     Income from self-acquired property converted into joint-family property [Sec. 64(2)]

8.     Clubbing of income after partition

9.     Remuneration of Spouse [Sec. 64(1)(ii)]

10. Income of Minor Child [Sec. 64(1A)]

11. Case Study

Multiple Choice Questions (MCQs)

Chapter 10

Set Off & Carry Forward of Losses

1.     Carry forward & set off of loss in case of closely held companies [Sec. 79]

2.     Taxpoint

3.     Option for eligible start-up company

Multiple Choice Question (MCQs)

Chapter 11

Deductions

1.     Deduction u/c VI A not available from LTCG u/s 112, LTCG u/s 112A, STCG u/s 111A, lottery income, races etc.

2.     Condition to be satisfied

3.     Quantum of deduction

4.     Lock in period

5.     Consequence in case of violation of lock in period

Multiple Choice Question MCQ

Chapter 12

Total Income

1.     What is total income and how is it computed

Multiple Choice Questions MCQ

Chapter 13

Return of Income

1.     Updated Return [Sec. 139(8A)]

2.     Taxpoint

3.     Tax on updated return [Sec. 140B]

4.     Centralized Processing Centers

5.     Obligation to furnish Specified Financial Transaction Reporting [Sec. 285BA]

6.     When a person becomes liable to pay advance tax

7.     How is advance tax payable

8.     Interest for late filing of return [Sec. 234A]

9.     Interest for non-payment of Advance Tax [Sec. 234B]

11. Payment of Advance Tax in case of Casual income [Proviso to Section 234C]

12. Interest on recovery of refund granted earlier [Sec. 234D]

13. Fee of delay in filing of Income Tax Returns [Sec. 234F]

14. Prosecution for non-filing of Income Tax Return [Sec. 276CC]

Multiple Choice Question (MCQs)

Chapter 14

TDS & TCS

1.     Point of time when TDS has to be deducted at source

2.     Person liable to deduct TDS

3.     TDS Rates

4.     TDS Certificates

5.     Due Dates for deposit of TDS

6.     Due dates for deposit of Statements of TDS

7.     Credit for tax deducted at source [Sec. 199]

8.     Fee and penalty for delay in furnishing of TDS Statement and penalty for incorrect information in TDStatement [Sec. 272A]

9.     TCS Rates

Multiple Choice Question (MCQs)

Chapter 15

Alternate Minimum Tax (AMT)

1.     Alternate Minimum Tax (AMT) [Sec. 115JEE(1)]

2.     Tax credit for AMT [Sec. 115JD]

3.     Tax Credit allowable even if Adjusted Total Income does not exceed ` 20 lakh in the year of set-off [Sec115JEE(3)]

4.     Section 115JC(3)

5.     Section 115JD