Category: Computation of Total Income

Computation of Total Income for the Assessment Year 2020-21 in case of Individual/HUF/BOI/, Business or Profession with all New Tax Amendment are described.

Deductions in respect of certain Incomes under Chapter VI-A

1. [Section 80-IA]: Deduction in respect of Profit and Gains from Industrial Undertaking or Enterprises engaged in infrastructure Development (1) Eligibility of Deductions U/s 80-IA The deduction under this Section 80-IA is available to an assessee whose Gross Total Income includes any profits and gains derived by: (1) Any enterprise […]

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Deductions in respect of certain Payments and Investments

Meaning and Basic Rules of Deductions from Gross Total Income The aggregate of income computed under each head, after giving effect to the provisions for clubbing of income and set off of losses, is known as “Gross Total Income”. In computing the total income of an assessee, certain deductions are […]

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Carry Forward and Set Off of Losses for Gross Total Income

If the losses could not be set off under the same head or under different heads in the same assessment year,  such losses are allowed to be carried forward to be claimed as set off from the income of the subsequent  assessment years. All losses are not allowed to be […]

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Set Off of Losses for Computing Gross Total Income

The provisions for set off or carry forward and set off of losses are contained in sections 70 to 80 of Income-tax Act and it involves the following three steps. Step 1: Inter source adjustments under the same head of income also known as intra head adjustment. Step 2: Inter-head […]

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Scope of Income under Income from Other Sources (Section-56)

1. Chargeability of Incomes As per Section 56(1), income of every kind, which is not to be excluded from the total income under this Act, shall be chargeable to income-tax under the head “Income from Other Sources” if it is not chargeable to Income-tax under any of the first four […]

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Taxable Incomes from Other Sources [Section 56(2)]

There are many incomes which are taxable under the head ‘Income from Other Sources’. However, section 56(2) enlists certain specific incomes which shall be chargeable to Income-tax under the head ‘Income from other sources’. These are: 1. Taxability of Dividend income [Section 56(2)(i)] Under section 2(22), the following payments or […]

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Exemptions in Capital Gain – Table Summary View

Exemptions available in Computation of Capital Gain in a Table Summary View under Sections 54, 54B, 54D, 54EC, 54EE, 54F, 54G, 54GA, 54GB Sections Assessee to whom Allowed Conditions to be satisfied Quantum of Exemption Section 54 Individua / HIJF 1. Transfer should be of a residential house income of […]

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Exemption of Capital Gains under Sections 10 and 54

Certain assets are not ‘Capital Assets’ for purposes of capital gain and hence there is no gain on transfer of such assets. Similarly, there are certain transactions which are not regarded as ‘transfer’ for capital gain purposes, and hence there is no capital gain on such transactions. We will now […]

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Computation of Capital Gain in Certain Cases

1. Capital Gain from Zero-Coupon Bonds (1) Meaning of Zero-Coupon Bond [Section 2(48)]: “Zero Coupon Bond” means a bond— issued by any infrastructure capital company or infrastructure capital fund or public sector company or scheduled bank; in respect of which no payment and benefit is received or receivable before maturity […]

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