Taxmann's Direct Taxes Law & Practice | Professional Edition

Sample Read

© Dr. Vinod K. Singhania Printing and publishing rights with the publisher First published : August 1981 Seventy-fourth edition : August 2026 Price : ` 4995 The law stated in this book is based on the Income-tax Act, 2025, as amended by the Finance Act, 2026 and the Taxation & Other Laws (Amendment) Act, 2026, and is updated up to August 10, 2026 Published by : Taxmann Publications (P.) Ltd. Sales & Marketing : 59/32, New Rohtak Road, New Delhi-110 005 India Phone : +91-11-45562222 Website : www.taxmann.com E-mail : sales@taxmann.com Regd. Office : 21/35, West Punjabi Bagh, New Delhi-110 026 India Printed at : Tan Prints (India) Pvt. Ltd. 44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com Disclaimer Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller will be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government publication or notifications. No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action. For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.

2^]cT]cb PAGE A few words from the authors

I-5 I-6 I-26 I-29 I-39 I-92

About the authors Abbreviations Section-wise Index Amendments at a glance Gist

of relevant Circulars, Clarifications and Notifications issued by CBDT [January 2018 - February 2026] Gist of landmark rulings of Supreme Court/High Courts [2018 - February 2026] I-317

1 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Tax year [Sec. 3] Person [Sec. 2(77), corresponding to sec. 2(31) of the 1961 Act] Assessee [Sec. 2(11), corresponding to sec. 2(7) of the 1961 Act] Charge of income-tax [Sec. 4] Income [Sec. 2(49), corresponding to sec. 2(24) of the 1961 Act] Gross total income Total income and tax liability [Sec. 2(108), corresponding to sec. 2(45) of the 1961 Act] Agricultural income Difference between exemption and deduction Assessment [Sec. 2(13), corresponding to sec. 2(8) of the 1961 Act] Definition of “manufacture” [Sec. 2(69), corresponding to sec. 2(29BA) of the 1961 Act] Capital asset [Sec. 2(22), corresponding to sec. 2(14) of the 1961 Act] Company [Sec. 2(28), corresponding to sec. 2(17) of the 1961 Act] Fair market value [Sec. 2(44), corresponding to sec. 2(22B) of the 1961 Act] Capital receipts vs. Revenue receipts Capital expenditure vs. Revenue expenditure Method of accounting [Sec. 276 (corresponding to sec. 145 of the 1961 Act)] Rules of interpretation

2 22. 23. 24. 25. 26. 27. 28. 29.

Basic concepts 1 2 3 4 4 13 17 19 19 19 19 19 20 20 20 26 26 27

Residential status and tax incidence

What is the relevance of residential status Residential status - General norms Residential status of an individual [Sec. 6(1)/(2)/(3)/(4)/(5)/(6)/(7)/(8)] Residential status of a Hindu undivided family [Sec. 6(9) (corresponding to sec. 6(2) of the 1961 Act)] Residential status of the firm and association of persons [Sec. 6(9) (corresponding to sec. 6(2) of the 1961 Act)] Residential status of a company [Sec. 6(10), corresponding to sec. 6(3) of the 1961 Act] Residential status of “every other person” [Sec. 6(11), corresponding to sec. 6(4) of the 1961 Act] Relation between residential status and incidence of tax [Sec. 5 (corresponding to sec. 5 of the 1961 Act)]

I-7

40 40 41 47 49 50 54 54

Contents

I-8 PAGE

Receipt of income Accrual of income Income deemed to accrue or arise in India [Sec. 9 (corresponding to sec. 9 of the 1961 Act)] Fund Managers in India not to constitute business connection of offshore funds [Sec. 9(12) and Schedule I (corresponding to sec. 9A of the 1961 Act)] 34. Hints for tax planning in respect of residential status 35. Problems on residential status and tax incidence 30. 31. 32. 33.

3

57 59 62 75 78 79

Incomes exempt from tax

40. Tax-free incomes 41. Educational scholarship [Schedule II (Table Sl. No. 7), corresponding to sec. 10(16) of the 1961 Act] 42. Receipts by a member from a Hindu undivided family [Schedule III (Table Sl. No. 1), corresponding to sec. 10(2) of the 1961 Act] 43. Share of profit from partnership firm [Schedule III (Table Sl. No. 2), corresponding to sec. 10(2A) of the 1961 Act] 44. Compensation on account of any disaster [Schedule III (Table Sl. No. 3), corresponding to sec. 10(10BC) of the 1961 Act] 45. Exemption of family pension received by the family members of armed forces [Schedule III (Table Sl. No. 16), corresponding to sec. 10(19) of the 1961 Act] 46. Income of a member of a Scheduled Tribe [Schedule III (Table Sl. No. 19), corresponding to sec. 10(26) of the 1961 Act] 47. Income of a “Sikkimese” individual [Schedule III (Table Sl. No. 20), corresponding to sec. 10(26AAA) of the 1961 Act] 48. Exemption available to income of local authority [Schedule III (Table Sl. No. 22), corresponding to sec. 10(20) of the 1961 Act] 49. Income of research association [Schedule III (Table Sl. No. 23), corresponding to sec. 10(21) of the 1961 Act] 50. Income of professional institution [Schedule III (Table Sl. No. 24), corresponding to sec. 10(23A) of the 1961 Act] 51. Income from khadi or village industries [Schedule III (Table Sl. No. 25), corresponding to sec. 10(23B) of the 1961 Act] 52. Income of investor protection fund [Schedule III (Table Sl. No. 27), corresponding to sec. 10(23EA) of the 1961 Act] 53. Incomes of Investor Protection Fund set up by commodity exchanges [Schedule III (Table Sl. No. 28), corresponding to sec. 10(23EC) of the 1961 Act] 54. Exemption to income of Investor Protection Fund of depositories [Schedule III (Table Sl. No. 29), corresponding to sec. 10(23ED) of the 1961 Act] 55. Exemption to income of Core Settlement Guarantee Fund (SGF) of the Clearing Corporations [Schedule III (Table Sl. No. 30), corresponding to sec. 10(23EE) of the 1961 Act] 56. Loan in the case of reverse mortgage [Schedule III (Table Sl. No. 35), corresponding to sec. 10(43) of the 1961 Act] 57. Exemption of specified income of notified body or authority or trust or board or commission [Schedule III (Table Sl. No. 36), corresponding to sec. 10(46) of the 1961 Act] 58. Exemption for disability pension to armed force personnel [Schedule III (Table Sl. No. 38A)] 59. Exemption on interest income under the Motor Vehicles Act [Schedule III (Table Sl. No. 38B)] 60. Alignment of exemption provisions with the RFCTLARR Act [Schedule III (Table Sl. No. 38C)] 61. Interest on Non-Resident External Account [Schedule IV (Table Sl. No. 1), corresponding to sec. 10(4)(ii) of the 1961 Act]

82 92 92 92 93 93 94 94 95 95 96 96 97 97 97 98 98 99 99 99 99 100

I-9

Contents PAGE

62. Technical fees received by a notified foreign company [Schedule IV (Table Sl. No. 6), corresponding to sec. 10(6C) of the 1961 Act] 63. Income of foreign company from lease rental of cruise ships [Schedule IV (Table Sl. No. 9), corresponding to sec. 10(15B) of the 1961 Act] 64. Income received by certain foreign companies in Indian currency for import of crude oil [Schedule IV, (Table Sl. No. 11), corresponding to sec. 10(48) of the 1961 Act] 65. Exemption for supply of capital equipment to contract manufacturers in electronic goods [Schedule IV (Table Sl. No. 13A)] 66. Exemption to non-residents for rendering services under a notified scheme in India [Schedule IV (Table Sl. No. 13B)] 67. Exemption to a foreign company on any income arising in India by way of procuring data centre services from a specified data centre [Schedule IV (Table Sl. No. 13C)] 68. Interest income of business trust [Schedule V (Table Sl. No. 3), corresponding to sec. 10(23FC) of the 1961 Act] 69. Distributed income received by a unitholder from a business trust [Schedule V (Table Sl. No. 5), corresponding to sec. 10(23FD) of the 1961 Act] 70. Income of venture capital fund or venture capital company [Schedule V (Table Sl. No. 6), corresponding to sec. 10(23FB) of the 1961 Act] 71. Income of wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) and Sovereign Wealth Fund [Schedule V (Table Sl. No. 7), corresponding to sec. 10(23FE) of the 1961 Act] 72. Income of fund established for the welfare of employees [Schedule VII (Table Sl. No. 2), corresponding to sec. 10(23AAA) of the 1961 Act] 73. Exemption to political parties [Schedule VIII (Table Sl. No. 1) (corresponding to sec. 13A of the 1961 Act)]

4

100 100 100 101 101 102 103 103 103 104 106 107

Salaries

81. Essential norms of salary income 82. Basis of charge [Sec. 15] 83. Place of accrual of salary income [Sec. 9(3)(a)/(b), corresponding to sec. 9(1)(ii)/(iii) of the 1961 Act] 84. Tax treatment of different forms of salary income 85. Allowance 86. Perquisites [Sec. 17(1), corresponding to sec. 17(2) of the 1961 Act] 87. Valuation of perquisites 88. Deduction from salary [Sec. 19] 89. Salaries of foreign citizens 90. Employees’ provident fund 91. Approved superannuation fund 92. Approved gratuity fund 93. Relief under section 157 (corresponding to sec. 89 of the 1961 Act) 94. Relief from taxation in income from retirement benefit account maintained in a notified country [Sec. 158 (corresponding to sec. 89A of the 1961 Act)] 95. Meaning of salary for different computations 96. Hints for tax planning 97. Problems on salary income Annex 1 to Chapter 4 : Frequently Asked Questions (FAQs) about computation of salary income

108 110 111 112 115 123 129 158 171 171 178 178 178 181 182 184 185 196

Contents

I-10 PAGE

5

Income from house property

105. Chargeability [Sec. 20 (corresponding to sec. 22 of the 1961 Act)] 106. Applicability of section 20 (corresponding to sec. 22 of the 1961 Act) in certain typical situations 107. Principle of mutuality vis-à-vis section 20 108. Property income exempt from tax 109. Computation of income from a let out house property 110. Computation of income from self-occupied property 111. Special provisions when unrealised rent is realised subsequently [Sec. 23 (corresponding to sec. 25A of the 1961 Act)] 112. Hints for tax planning 113. Problems on computation of property income Appendix to Chapter 5 : Frequently Asked Questions (FAQs) about mode of computation of annual value

6 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137.

138.

139. 140. 141.

198 203 206 206 207 215 221 221 222 231

Profits and gains of business or profession

Chargeability [Sec. 26 (corresponding to sec. 28 of the 1961 Act)] General principles governing the assessment of business income Method of accounting [Sec. 276 (corresponding to sec. 145 of the 1961 Act)] Scheme of deductions and allowances Basic principles governing the admissibility of deduction under sections 28 to 60 (corresponding to secs. 30 to 44C of the 1961 Act) Rent, rates, taxes, repairs and insurance [Sec. 28 (corresponding to secs. 30 and 31 of the 1961 Act)] Deduction related to employee welfare [Sec. 29, corresponding to sec. 36(1) of the 1961 Act] Deduction on certain premium [Sec. 30, corresponding to sec. 36(1)(i)/(ia)/(ib) of the 1961 Act] Deduction for bad debt and provision for bad and doubtful debt [Sec. 31, corresponding to sec. 36(1)(vii)/(viia) of the 1961 Act] Depreciation [Sec. 33 (corresponding to sec. 32 of the 1961 Act)] Amortisation of preliminary expenses [Sec. 44, corresponding to sec. 35D of the 1961 Act] Expenditure on scientific research [Sec. 45 (corresponding to sec. 35 of the 1961 Act)] Deduction in respect of capital expenditure of specified business [Sec. 46 (corresponding to sec. 35AD of the 1961 Act)] Expenditure on agricultural extension project and skill development project [Sec. 47 (corresponding to secs. 35CCC and 35CCD of the 1961 Act)] Tea/Coffee/Rubber Development Account [Sec. 48 (corresponding to sec. 33AB of the 1961 Act)] Site restoration fund [Sec. 49 and Schedule X (corresponding to sec. 33ABA of the 1961 Act)] Amortisation of expenditure on prospecting, etc., for the development of certain minerals [Sec. 51 read with Schedule XII (corresponding to sec. 35E and Seventh Schedule of the 1961 Act)] Amortisation of expenditure for telecommunication services, amalgamation, demerger, scheme of voluntary retirement, etc. [Sec. 52 (corresponding to secs. 35ABA, 35ABB, 35DD and 35DDA of the 1961 Act)] Other deductions [Sec. 32 (corresponding to sec. 36 of the 1961 Act)] General deduction [Sec. 34 (corresponding to sec. 37 of the 1961 Act)] Amounts expressly disallowed under the Act

235 250 257 257 257 259 261 263 264 269 309 312 320 324 325 328 329

331

335 343 406

I-11

Contents PAGE

142. Amount not deductible under section 35 (corresponding to sec. 40 of the 1961 Act) 143. Expenses or payments not deductible in certain circumstances [Sec. 36 (corresponding to sec. 40A of the 1961 Act)] 144. Certain deductions allowed on an actual payment basis [Sec. 37, corresponding to sec. 43B of the 1961 Act] 145. Deemed profits chargeable to tax as business income [Secs. 38 and 320(4)/(5), corresponding to secs. 41 and 176(3A)/(4) of the 1961 Act] 146. Income from undisclosed sources 147. Maintenance of accounts by persons [Sec. 62, corresponding to sec. 44AA of the 1961 Act] 148. Tax audit [Sec. 63 (corresponding to sec. 44AB of the 1961 Act)] 149. Special provision for computing income from business or profession on presumptive basis in case of certain residents [Sec. 58 (corresponding to secs. 44AD, 44AE and 44ADA of the 1961 Act)] 150. Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents [Sec. 61 (corresponding to secs. 44B to 44BBD of the 1961 Act)] 151. Special provisions consequential to changes in the rate of exchange of currency [Secs. 42 and 43 (corresponding to secs. 43A and 43AA of the 1961 Act)] 152. Special provision in the case of trade, professional or similar associations [Sec. 50 (corresponding to sec. 44A of the 1961 Act)] 153. Special provisions 154. Valuation of stock 155. Hints for tax planning 156. Problems on computation of income from business/profession

7 166. 167. 168. 169. 170. 171. 172. 173. 174. 175. 176. 177. 178. 179. 180. 181. 182. 183.

407 415 422 431 435 437 439 441

448

454 456 457 467 472 476

Capital gains

Chargeability [Sec. 67 (corresponding to sec. 45 of the 1961 Act)] Meaning of capital asset [Sec. 2(22), corresponding to sec. 2(14) of the 1961 Act] Types of capital asset [Sec. 2(101), corresponding to sec. 2(42A) of the 1961 Act] Transfer of capital asset [Sec. 2(109), corresponding to sec. 2(47) of the 1961 Act] Capital gains - How computed [Sec. 72 (corresponding to sec. 48 of the 1961 Act)] Full value of consideration [Sec. 72 (corresponding to sec. 48 of the 1961 Act)] Expenditure on transfer [Sec. 72(1)(a), corresponding to sec. 48(i) of the 1961 Act] Cost of acquisition [Sec. 72(1)(b), corresponding to sec. 48(ii) of the 1961 Act] Cost of improvement Indexed cost of acquisition and indexed cost of improvement [Sec. 197(3) (corresponding to sec. 112 of the 1961 Act)] Capital gain in certain special cases - How to compute Reference to Valuation Officer [Sec. 91 (corresponding to sec. 55A of the 1961 Act)] Capital gains exempt from tax Capital gains arising from the transfer of residential house property [Sec. 82 (corresponding to sec. 54 of the 1961 Act)] Capital gains arising from the transfer of land used for agricultural purposes [Sec. 83 (corresponding to sec. 54B of the 1961 Act)] Capital gains on compulsory acquisition of land and building, forming part of industrial undertaking [Sec. 84 (corresponding to sec. 54D of the 1961 Act)] Capital gain not to be charged on investment in certain bonds [Sec. 85 (corresponding to sec. 54EC of the 1961 Act)] Capital gains on transfer of a long-term capital asset other than a house property [Sec. 86 (corresponding to sec. 54F of the 1961 Act)]

486 486 489 494 506 508 510 511 515 517 517 559 559 561 567 569 570 573

Contents

I-12 PAGE

184. Capital gains on transfer of assets in cases of shifting of an industrial undertaking from an urban area [Sec. 87 (corresponding to sec. 54G of the 1961 Act)] 185. Exemption of capital gains on transfer of assets in cases of shifting of an industrial undertaking from an urban area to any Special Economic Zone [Sec. 88 (corresponding to sec. 54GA of the 1961 Act)] 186. Extension of time-limit for acquiring a new asset [Sec. 89 (corresponding to sec. 54H of the 1961 Act)] 187. Short-term/long-term capital gains - How charged to tax 188. Hints for tax planning 189. Problems on computation of capital gains Annex 1 : Method of computing indexed cost of acquisition and indexed cost of improvement

8 195. 196. 197. 198. 199. 200. 201. 202. 203. 204. 205. 206. 207. 208. 209. 210. 211. 212. 213.

583

584 584 595 597 600

Income from other sources

Basis of charge [Sec. 92 (corresponding to sec. 56 of the 1961 Act)] Relevance of the method of accounting Dividend [Sec. 92(2)(a) (corresponding to sec. 56(2)(i) of the 1961 Act)] Winnings from lotteries, crossword puzzles, horse races and card games, etc. [Sec. 92(2) (b), corresponding to sec. 56(2)(ib) of the 1961 Act] Sum received from employees as their contribution towards staff welfare schemes [Sec. 92(2)(c), corresponding to sec. 56(2)(ic) of the 1961 Act] Interest on securities [Sec. 92(2)(e), corresponding to sec. 56(2)(id) of the 1961 Act] Income from machinery, plant or furniture let on hire [Sec. 92(2)(f), corresponding to sec. 56(2)(ii) of the 1961 Act] Income from composite letting of building, machinery, plant or furniture [Sec. 92(2)(g), corresponding to sec. 56(2)(iii) of the 1961 Act] Advance money [Sec. 92(2)(h), corresponding to sec. 56(2)(ix) of the 1961 Act] Interest on compensation/enhanced compensation [Sec. 92(2)(i), corresponding to sec. 56(2)(viii) of the 1961 Act] Compensation on termination of employment [Sec. 92(2)(j), corresponding to sec. 56(2) (xi) of the 1961 Act] Sum received by a unitholder from a business trust [Sec. 92(2)(k), corresponding to sec. 56(2)(xii) of the 1961 Act] Sum received under a life insurance policy [Sec. 92(2)(l), corresponding to sec. 56(2)(xiii) of the 1961 Act] Money/property is received without consideration or for inadequate consideration [Sec. 92(2)(m), corresponding to sec. 56(2)(x) of the 1961 Act] Interest on KVP, IVP, NSC and deep discount bonds Deduction [Sec. 93 (corresponding to sec. 57 of the 1961 Act)] Expenses not deductible [Sec. 94 (corresponding to sec. 58 of the 1961 Act)] Deemed profit chargeable to tax Problems on computation of income from other sources

9

581

603 606 606 616 617 617 619 620 621 622 622 622 623 626 635 637 638 639 639

Income of other persons included in assessee’s total income

221. Transfer of income without transfer of assets [Sec. 96 (corresponding to sec. 60 of the 1961 Act)] 222. Revocable transfer of assets [Sec. 97 (corresponding to sec. 61 of the 1961 Act)]

645 645

I-13

Contents PAGE

223. When an individual is assessable in respect of remuneration of spouse [Sec. 99(1)(a)(i), corresponding to sec. 64(1)(ii) of the 1961 Act] 224. When an individual is assessable in respect of income from assets transferred to spouse [Sec. 99(1)(a)(ii), corresponding to sec. 64(1)(iv) of the 1961 Act] 225. When individual is assessable in respect of income from assets transferred to son’s wife [Sec. 99(1)(b), corresponding to sec. 64(1)(vi) of the 1961 Act] 226. Income of minor child [Sec. 99(1)(c), corresponding to sec. 64(1A) of the 1961 Act] 227. Income from assets transferred to a person for the benefit of the spouse or the son’s wife [Sec. 99(1)(d), corresponding to sec. 64(1)(vii)/(viii) of the 1961 Act] 228. Conversion of self-acquired property into joint family property and subsequent partition [Sec. 99(3), corresponding to sec. 64(2) of the 1961 Act] 229. Other points 230. Recovery of tax [Sec. 100 (corresponding to sec. 65 of the 1961 Act)] 231. Hints for tax planning 232. Problems explaining clubbing provisions

10 241. 242. 243. 244. 245. 246. 247. 248. 249.

250.

649 653 654 655 656 657 658 658 660

Set off and carry forward of losses

Mode of set off and carry forward - The three steps Intra-head adjustment - How made [Sec. 108 (corresponding to sec. 70 of the 1961 Act)] Inter-head adjustment - How made [Sec. 109 (corresponding to sec. 71 of the 1961 Act)] Carry forward of loss Loss on sale of shares, securities or units [Sec. 175(8), corresponding to sec. 94(7) of the 1961 Act] Loss arising in the case of bonus stripping [Sec. 175(9), corresponding to sec. 94(8) of the 1961 Act] Loss of partnership firms Loss of closely held companies [Sec. 119 (corresponding to sec. 79 of the 1961 Act)] Carry forward and set off of loss and depreciation - When permissible in the hands of amalgamated and demerged company or co-operative bank [Secs. 116 to 118 (corresponding to secs. 72A to 72AB of the 1961 Act)] Problems illustrating the provisions of set off and carry forward of losses

11

646

664 664 666 667 679 679 681 681 681

682

Deductions from gross total income and tax liability

261. Deductions to be made in computing total income [Sec. 122 (corresponding to secs. 80A, 80AB and 80AC of the 1961 Act)] 262. Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. [Sec. 123 (corresponding to sec. 80C of the 1961 Act)] 263. Deduction in respect of employer and assessee contributions to National Pension System (NPS) [Sec. 124 (corresponding to sec. 80CCD of the 1961 Act)] 264. Deduction in respect of contribution to Agnipath Scheme [Sec. 125 (corresponding to sec. 80CCH of the 1961 Act)] 265. Deduction in respect of medical insurance premium [Sec. 126 (corresponding to sec. 80D of the 1961 Act)] 266. Deduction in respect of maintenance including medical treatment of a handicapped dependent who is a person with disability [Sec. 127 (corresponding to sec. 80DD of the 1961 Act)] 267. Deduction in respect of medical treatment [Sec. 128 (corresponding to sec. 80DDB of the 1961 Act)]

686 688

693 696 697 700 702

Contents

I-14 PAGE

268. Deduction in respect of interest on loan taken for higher education [Sec. 129 (corresponding to sec. 80E of the 1961 Act)] 269. Deduction in respect of interest on loan taken for residential house property [Sec. 130 (corresponding to sec. 80EE of the 1961 Act)] 270. Deduction in respect of interest on loan taken for certain house property [Sec. 131 (corresponding to sec. 80EEA of the 1961 Act)] 271. Deduction in respect of interest on loan taken for purchase of electric vehicle [Sec. 132 (corresponding to sec. 80EEB of the 1961 Act)] 272. Deduction in respect of donations to certain funds, charitable institutions, etc. [Sec. 133 (corresponding to sec. 80G of the 1961 Act)] 273. Deduction in respect of rent paid [Sec. 134 (corresponding to sec. 80GG of the 1961 Act)] 274. Deduction in respect of certain donations for scientific research or rural development [Sec. 135 (corresponding to sec. 80GGA of the 1961 Act)] 275. Deduction in respect of contributions given by companies to political parties [Sec. 136 (corresponding to sec. 80GGB of the 1961 Act)] 276. Deduction in respect of contributions given by any person to political parties [Sec. 137 (corresponding to sec. 80GGC of the 1961 Act)] 277. Deduction in respect of profits and gains from industrial undertaking or enterprises engaged in infrastructure development etc. [Sec. 138 (corresponding to sec. 80-IA of the 1961 Act)] 278. Deduction in respect of profits and gains of an undertaking engaged in development of Special Economic Zone [Sec. 139 (corresponding to sec. 80-IAB of the 1961 Act)] 279. Deduction in respect of specified business (i.e., start-up) [Sec. 140 (corresponding to sec. 80-IAC of the 1961 Act)] 280. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings [Sec. 141 (corresponding to sec. 80-IB of the 1961 Act)] 281. Deduction in respect of profits from housing projects [Sec. 142 (corresponding to sec. 80-IBA of the 1961 Act)] 282. Deduction in respect of certain undertakings in North-Eastern States [Sec. 143 (corresponding to sec. 80-IE of the 1961 Act)] 283. Special provisions in respect of newly established units in Special Economic Zone [Sec. 144, corresponding to sec. 10AA of the 1961 Act] 284. Deduction for business engaged in collecting and processing of bio-degradable waste [Sec. 145 (corresponding to sec. 80JJA of the 1961 Act)] 285. Deduction in respect of additional employee cost [Sec. 146 (corresponding to sec. 80JJAA of the 1961 Act)] 286. Deduction for income of Offshore Banking and Units of International Financial Services Centre [Sec. 147 (corresponding to sec. 80LA of the 1961 Act)] 287. Deduction in respect of inter-corporate dividends [Sec. 148 (corresponding to sec. 80M of the 1961 Act)] 288. Deduction in respect of income of co-operative societies [Secs. 149 and 150 (corresponding to sec. 80P of the 1961 Act)] 289. Deduction in respect of royalty income of authors [Sec. 151 (corresponding to sec. 80QQB of the 1961 Act)] 290. Deduction in respect of royalty on patents [Sec. 152 (corresponding to sec. 80RRB of the 1961 Act)] 291. Deduction for interest on deposits [Sec. 153 (corresponding to secs. 80TTA and 80TTB of the 1961 Act)] 292. Deduction in case of a person with disability [Sec. 154 (corresponding to sec. 80U of the 1961 Act)] 293. Deductions from tax liability 294. Rebate for resident individuals [Sec. 156 (corresponding to sec. 87A of the 1961 Act)]

703 704 704 705 705 708 709 710 710 710 721 722 723

723 725 726 730 730 733 734 734 734 736 737 738 738 739

I-15

Contents PAGE

12

Agricultural income

301. Definition [Sec. 2(5) (corresponding to sec. 2(1A) of the 1961 Act)] 302. Income which is partly agricultural and partly from business 303. Partially integrated taxation of non-agricultural income with income derived from agriculture 304. Computation of net agricultural income

13 311. 312. 313. 314.

321. 322. 323. 324. 325. 326. 327. 328. 329.

333. 334. 335. 336. 337. 338. 339. 340. 341. 342. 343. 344. 345. 346.

760 760 761 765

Tax treatment of Hindu undivided families

Meaning of Hindu undivided family Hindu coparcenary Different schools of Hindu law Jain and Sikh families Assessment as Hindu undivided family – Basic conditions Taxable income - How to compute Tax rates Partition of a Hindu undivided family Problems on Hindu undivided families

15

752

Typical issues in assessment of individuals

Tax incidence on individuals Taxable income - How computed Tax liability Problems on computation of taxable income

14

743 748 751

775 775 775 776 776 777 779 779 781

Special provisions governing assessment of firms and association of persons

Meaning of partnership Scheme of taxation of firms When remuneration/interest is deductible What are the conditions a firm should fulfil under section 325 (corresponding to sec. 184 of the 1961 Act) Conditions for claiming deduction of remuneration to partners under section 35(e) [corresponding to sec. 40(b) of the 1961 Act] What are the conditions for claiming a deduction of interest to partners under section 35(e) [corresponding to sec. 40(b) of the 1961 Act] Carry forward and set off of loss in the case of a change in the constitution of firm How to find out the income of a firm Computation of the tax of firm Assessment of partners of a firm How to compute the income of an association of persons (AOP) or body of individuals (BOI) How to compute the taxable income of an AOP/BOI How to find out the tax liability of an AOP/BOI How to determine the taxable income of members of AOP/BOI

789 789 789 790 791 798 800 802 804 810 814 816 816 817

Contents

I-16 PAGE

347. Computation of tax of members 348. Problems on computation of the taxable income of firms/partners and association of persons

16

Taxation of companies

355. Definitions 356. Taxable income and tax liability - How computed 357. Carry forward and set-off of losses in the cases of certain companies [Sec. 119(3) (corresponding to sec. 79 of the 1961 Act)] 358. Minimum alternate tax [Sec. 206(1) (corresponding to sec. 115JB of the 1961 Act)] 359. Problems on computation of the taxable income of a corporate-assessee

17 365. 366. 367. 368. 369.

380. 381. 382. 383. 384. 385. 386. 387. 388. 389. 390. 391. 392. 393. 394. 395. 396. 397. 398.

828 830 831 833 849

Assessment of co-operative societies

Meaning of co-operative society [Sec. 2(32), corresponding to sec. 2(19) of the 1961 Act] Taxable income and tax liability - How computed Deduction under section 149 (corresponding to sec. 80P of the 1961 Act) Deduction in respect of income of federal co-operative [Sec. 150] Problems on computation of income of a co-operative society

18

818 821

871 871 872 881 881

Assessment of registered non-profit organisations and other trusts

Tax provisions for registered non-profits organisations - Key shifts in the 2025 Act Computation of income for registered NPOs - An overview Charitable purpose [Sec. 2(23), corresponding to sec. 2(15) of the 1961 Act] Registration [Sec. 332] Tax on the income of registered NPOs [Sec. 334] Computation of regular income [Sec. 335 (corresponding to secs. 11 and 12 of the 1961 Act)] Application of income [Sec. 341, corresponding to sec. 11(1) of the 1961 Act] Accumulation of income [Sec. 342, corresponding to sec. 11(2)/(3)/(3A) of the 1961 Act] Commercial activities by registered NPOs [Secs. 344 to 346, corresponding to secs. 2(15) and 11(4)/(4A) of the 1961 Act] Specified income [Sec. 337] Compliance obligations of registered NPOs [Secs. 347 to 350, corresponding to secs. 12A(1) (b)/(ba) and 11(5) of the 1961 Act] Specified violations [Secs. 351 and 270(13), corresponding to secs. 12AB(4)/(5), 13, second proviso to sec. 143(3) of the 1961 Act] Tax on accreted income [Sec. 352 (corresponding to sec. 115TD of the 1961 Act)] Other violations [Sec. 353] Approval for the purpose of section 133(1)(b)(ii) [corresponding to sec. 80G(2)(a)(iv) of the 1961 Act] Private discretionary trust Oral trust [Sec. 308 (corresponding to sec. 164A of the 1961 Act)] Special provisions pertaining to business trust [Sec. 223 (corresponding to sec. 115UA of the 1961 Act)] Pass through status to Category I and Category II Alternative Investment Funds [Sec. 224 (corresponding to sec. 115UB of the 1961 Act)]

883 884 885 888 892 893 895 899 901 902 907 909 911 913 913 915 916 917 919

I-17

Contents PAGE

19 405. 406. 407. 408. 409. 410. 411. 412. 413. 414. 415. 416. 417. 418. 419. 420. 421. 422. 423. 424. 425. 426. 427. 428. 429. 430. 431.

Return of income and assessment

Voluntary return Return of loss [Sec. 263(1)(a)(viii), corresponding to sec. 139(3) of the 1961 Act] Belated return [Sec. 263(4), corresponding to sec. 139(4) of the 1961 Act] Revised return [Sec. 263(5), corresponding to sec. 139(5) of the 1961 Act] Updated return [Sec. 263(6)(a), corresponding to sec. 139(8A) of the 1961 Act] Defective or incomplete return [Sec. 263(7), corresponding to sec. 139(9) of the 1961 Act] Modified return [Sec. 314 (corresponding to sec. 170A of the 1961 Act)] Filing of return in electronic mode [Sec. 263(2)(a), corresponding to sec. 139D of the 1961 Act] Scheme to facilitate submission of returns through Tax Return Preparers [Sec. 264 (corresponding to sec. 139B of the 1961 Act)] Return by whom to be verified [Sec. 265 (corresponding to sec. 140 of the 1961 Act)] Permanent account number (PAN) [Sec. 262 (corresponding to sec. 139A of the 1961 Act)] Self-assessment [Sec. 266 (corresponding to sec. 140A of the 1961 Act)] Inquiry before assessment [Sec. 268 or 269 (corresponding to sec. 142 or 142A of the 1961 Act)] Summary assessment without calling the assessee [Sec. 270(1), corresponding to sec. 143(1) of the 1961 Act] Assessment in response to notice under section 270(8) [Sub-secs. (10) to (15) of sec. 270, corresponding to sec. 143(3) of the 1961 Act] Faceless assessment [Sec. 273 (corresponding to sec. 144B of the 1961 Act) and rule 176] Best judgment assessment [Sec. 271 (corresponding to sec. 144 of the 1961 Act)] Reference to Dispute Resolution Panel [Sec. 275 (corresponding to sec. 144C of the 1961 Act)] Reassessment [Secs. 279 to 285 (corresponding to secs. 147 to 152 of the 1961 Act)] When can mistakes be rectified [Sec. 287 (corresponding to sec. 154 of the 1961 Act)] Time-limit for completion of assessment/reassessment [Sec. 286 (corresponding to sec. 153 of the 1961 Act)] Problems on return of income and assessment Obligation to furnish annual information return pertaining to financial transactions [Sec. 508 (corresponding to sec. 285BA of the 1961 Act)] Submission of statement by a non-resident having liaison office in India [Sec. 505 (corresponding to sec. 285 of the 1961 Act)] Furnishing of information or document by an Indian concern [Sec. 506 (corresponding to sec. 285A of the 1961 Act)] Reporting by producers of cinematograph films or persons engaged in specified activities [Sec. 507 (corresponding to sec. 285B of the 1961 Act)] Obligation to furnish information in respect of crypto-asset [Sec. 509 (corresponding to sec. 285BAA of the 1961 Act)]

20

922 927 927 928 930 936 938 939 939 940 941 946 948 952 955 961 967 969 971 981 987 990 994 997 997 997 998

Penalties and prosecutions

440. Penalties for defaults 441. Penalty for under-reporting and misreporting of income [Sec. 439 (corresponding to sec. 270A of the 1961 Act)] 442. Waiver of penalty and immunity from prosecution [Sec. 440 (corresponding to sec. 270AA of the 1961 Act)] 443. Penalty for failure to get accounts audited under section 44AB of the 1961 Act

999 1005 1012 1015

Contents

I-18 PAGE

444. Penalty for failure to deduct tax at source under section 448 (corresponding to sec. 271C of the 1961 Act) 445. Penalty for violation of provisions of sections 185 and 188 (corresponding to secs. 269SS and 269T of the 1961 Act) 446. Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc. [Sec. 465 (corresponding to sec. 272A of the 1961 Act)] 447. Penalty for failure to furnish quarterly TDS/TCS return [Sec. 461 (corresponding to sec. 271H of the 1961 Act)] 448. Who can levy penalty 449. Power of Commissioner to reduce or waive penalty [Sec. 469 (corresponding to sec. 273A of the 1961 Act)] 450. Procedure for imposition of penalty [Sec. 471 (corresponding to sec. 274 of the 1961 Act)] 451. Time-limit to impose penalties rationalised [Sec. 472 (corresponding to sec. 275 of the 1961 Act)] 452. Offences and prosecutions 453. Onus of proof in certain cases [Secs. 470, 486 and 490 (corresponding to secs. 273B, 278AA and 278E of the 1961 Act)]

21 461. 462. 463. 464. 465.

1017 1018 1019 1020 1020 1023 1024 1025 1032

Advance payment of tax

Income liable for advance tax Liability to advance tax - When arises Due dates of payment of advance tax Payment of advance tax by the assessee of his own account Payment of advance tax in pursuance of order of Assessing Officer

22

1015

1034 1034 1034 1034 1035

Interest

471. Interest for defaults in furnishing return of income [Sec. 423 (corresponding to sec. 234A of the 1961 Act)] 472. Interest for default in payment of advance tax [Sec. 424 (corresponding to sec. 234B of the 1961 Act)] 473. Interest for deferment of advance tax [Sec. 425 (corresponding to sec. 234C of the 1961 Act)] 474. Interest for failure to deduct or collect and pay tax at source [Sec. 398(3), corresponding to secs. 201(1A) and 206C(7) of the 1961 Act] 475. Interest on excess refund [Sec. 426 (corresponding to sec. 234D of the 1961 Act)] 476. For making late payment of income-tax [Sec. 411(3), corresponding to sec. 220(2) of the 1961 Act] 477. Fee for default in furnishing statements [Sec. 427] 478. Fee for default in furnishing return of income, audited accounts and reports [Sec. 428] 479. Fee for default relating to statement/certificate of donation [Sec. 429 (corresponding to sec. 234G of the 1961 Act)] 480. Fee for default relating to intimation of Aadhaar number [Sec. 430 (corresponding to sec. 234H of the 1961 Act)] 481. Interest on refund payable to assessee [Sec. 437 (corresponding to sec. 244A of the 1961 Act)] 482. Procedure to be followed in calculation of interest [Rule 269 (corresponding to rule 119A of the 1962 Rules)] 483. Waiver or reduction of interest under sections 234A, 234B and 234C of the 1961 Act which arises due to operation of any order of Court 484. Chief Commissioner/Director General (Investigation) to reduce penal interest in certain cases

1039 1043 1046 1054 1057 1058 1060 1061 1062 1062 1062 1067 1067 1067

I-19

Contents PAGE

23

Tax deduction or collection at source

491. Scheme of tax deduction at source 492. Deduction of tax from salaries [Sec. 392 (corresponding to sec. 192 of the 1961 Act)] 493. Tax deduction at source from withdrawal from Employees’ Provident Fund Scheme [Sec. 392(7) (corresponding to sec. 192A of the 1961 Act)] 494. Deduction of tax at source from insurance commission [Sec. 393(1), Table Sl. No. 1(i), corresponding to sec. 194D of the 1961 Act] 495. Deduction of tax at source from commission or brokerage [Sec. 393(1), Table Sl. No. 1(ii), corresponding to sec. 194H of the 1961 Act] 496. Tax deduction from payment of rent by certain individuals/HUFs [Sec. 393(1), Table Sl. No. 2(i) (corresponding to sec. 194-IB of the 1961 Act)] 497. Deduction of tax at source from income by way of rent [Sec. 393(1), Table Sl. No. 2(ii), corresponding to sec. 194-I of the 1961 Act] 498. Tax deduction from payment on transfer of certain immovable properties (other than rural agricultural land) [Sec. 393(1), Table Sl. No. 3(i) (corresponding to sec. 194-IA of the 1961 Act)] 499. Tax deduction from payment under joint development agreement [Sec. 393(1), Table Sl. No. 3(ii) (corresponding to sec. 194-IC of the 1961 Act)] 500. Tax deduction from compensation payable on compulsory acquisition of immovable property [Sec. 393(1), Table Sl. No. 3(iii) (corresponding to sec. 194LA of the 1961 Act)] 501. Tax deduction at source in respect of income from units [Sec. 393(1), Table Sl. No. 4(i) (corresponding to sec. 194K of the 1961 Act)] 502. Tax deduction from income from units of business trust [Sec. 393(1), Table Sl. No. 4(ii) (corresponding to sec. 194LBA(1) of the 1961 Act)] 503. Tax deduction from income in respect of units of investment fund [Sec. 393(1), Table Sl. No. 4(iii) (corresponding to sec. 194LBB of the 1961 Act)] 504. Tax deduction from income in respect of investment in securitisation trust [Sec. 393(1), Table Sl. No. 4(iv) (corresponding to sec. 194LBC of the 1961 Act)] 505. Deduction of tax at source from interest on securities [Sec. 393(1), Table Sl. No. 5(i) (corresponding to sec. 193 of the 1961 Act)] 506. Deduction of tax at source from interest other than interest on securities [Sec. 393(1), Table Sl. No. 5(ii)/(iii) (corresponding to sec. 194A of the 1961 Act)] 507. Deduction of tax at source from payments to contractors or sub-contractors [Sec. 393(1), Table Sl. No. 6(i) (corresponding to sec. 194C of the 1961 Act)] 508. TDS on certain payments by an individual/HUF [Sec. 393(1), Table Sl. No. 6(ii) (corresponding to sec. 194M of the 1961 Act)] 509. Tax deduction at source on fees for professional or technical services [Sec. 393(1), Table Sl. No. 6(iii) (corresponding to sec. 194J of the 1961 Act)] 510. Deduction of tax at source from dividends [Sec. 393(1) (Table Sl. No. 7) (corresponding to sec. 194 of the 1961 Act)] 511. Tax deduction from payment of life insurance policy [Sec. 393(1), Table Sl. No. 8(i) (corresponding to sec. 194DA of the 1961 Act)] 512. TDS on payment of certain sum for purchase of goods [Sec. 393(1), Table Sl. No. 8(ii) (corresponding to sec. 194Q of the 1961 Act)] 513. TDS in the case of specified senior citizen [Sec. 393(1), Table Sl. No. 8(iii) (corresponding to sec. 194P of the 1961 Act)] 514. Deduction of tax on benefit/perquisite pertaining to business/profession [Sec. 393(1), Table Sl. No. 8(iv) (corresponding to sec. 194R of the 1961 Act)]

1069 1072 1077 1081 1082 1084 1085 1089

1090 1091 1091 1092 1092 1092 1093 1094 1098 1103 1104 1108 1108 1110 1112 1113

Contents

I-20 PAGE

515. TDS on payment by e-commerce operator to e-commerce participants [Sec. 393(1), Table Sl. No. 8(v) (corresponding to sec. 194-O of the 1961 Act)] 516. Deduction of tax from payment on transfer of virtual digital asset [Sec. 393(1), Table Sl. No. 8(vi) (corresponding to sec. 194S of the 1961 Act)] 517. Deduction of tax at source from winnings from lotteries or crossword puzzles, etc. [Sec. 393(3) (Table Sl. No. 1) (corresponding to sec. 194B of the 1961 Act)] 518. Deduction of tax at source from winnings from online games [Sec. 393(3) (Table Sl. No. 2) (corresponding to sec. 194BA of the 1961 Act)] 519. Deduction of tax at source from winnings from horse races [Sec. 393(3) (Table Sl. No. 3) (corresponding to sec. 194BB of the 1961 Act)] 520. Deduction of tax from commission, etc., on sale of lottery tickets [Sec. 393(3) (Table Sl. No. 4) (corresponding to sec. 194G of the 1961 Act)] 521. TDS on payment of certain amounts in cash [Sec. 393(3) (Table Sl. No. 5) (corresponding to sec. 194N of the 1961 Act)] 522. Deduction of tax from payments in respect of National Savings Scheme [Sec. 393(3) (Table Sl. No. 6) (corresponding to sec. 194EE of the 1961 Act)] 523. Deduction of tax by firms from payment of remuneration/interest to partners [Sec. 393(3) (Table Sl. No. 7) (corresponding to sec. 194T of the 1961 Act)] 524. Deduction of tax from payment to non-resident [Sec. 393(2)] 525. No tax deduction at source from amount payable to Government, RBI, certain corporations, etc. 526. Certificate for lower or nil TDS/TCS from Assessing Officer [Sec. 395(1)/(3), corresponding to secs. 197 and 206C(9)/(10) of the 1961 Act] 527. Declaration for no deduction at source [Sec. 393(6) (corresponding to sec. 197A of the 1961 Act)] 528. Tax collection at source [Sec. 394 (corresponding to sec. 206C of the 1961 Act)] 529. Tax collection at lower rate [Sec. 395(3), corresponding to sec. 206C(9)/(10) of the 1961 Act] 530. Time of deposit of TDS/TCS 531. Quarterly statement of tax deduction/collection 532. Certificate of tax deduction/collection at source [Sec. 395 (corresponding to sec. 203 of the 1961 Act)] 533. Tax deduction and collection account number (TAN) [Sec. 397 (corresponding to sec. 203A of the 1961 Act)] 534. Furnishing of quarterly returns regarding the details of non-deduction of tax by certain persons [Sec. 397(3)(g)(i) (corresponding to sec. 206A of the 1961 Act)] 535. Processing of statements of tax deducted at source [Sec. 399 (corresponding to sec. 200A of the 1961 Act)] 536. Assessee in default [Sec. 398 (corresponding to sec. 201 of the 1961 Act)]

24

1117 1118 1118 1122 1123 1123 1124 1125 1126 1134 1136 1138 1140 1147 1147 1149 1151 1152 1153 1153 1154

Refund of excess payments

Right to claim refund - When arises [Sec. 431 (corresponding to sec. 237 of the 1961 Act)] Who can claim refund [Sec. 432 (corresponding to sec. 238 of the 1961 Act)] How to claim refund [Sec. 433 (corresponding to sec. 239 of the 1961 Act)] Refund for denying liability to deduct tax in certain cases [Sec. 434 (corresponding to sec. 239A of the 1961 Act)] 555. Other points 551. 552. 553. 554.

1116

1155 1155 1155 1155 1156

I-21

Contents PAGE

25 561. 562. 563. 564. 565. 566. 567. 568. 569.

570. 571. 572. 573.

Appeals and revisions

Meaning of appeal Appellate hierarchy Appeal to Joint Commissioner (Appeals) [Sec. 356 (corresponding to sec. 246 of the 1961 Act)] Appeal to the Commissioner (Appeals) [Sec. 357 (corresponding to sec. 246A of the 1961 Act)] Appeal to the Appellate Tribunal Appeal to High Court Appeal to the Supreme Court [Sec. 367 (corresponding to sec. 261 of the 1961 Act)] Provision for avoiding repetitive appeals [Sec. 375 (corresponding to sec. 158A of the 1961 Act)] Litigation management when, in an appeal by revenue, an identical question of law is pending before the jurisdictional High Court or the Supreme Court [Sec. 376 (corresponding to sec. 158AB of the 1961 Act)] Consequence of non-filing of appeal in respect of cases where the tax effect is less than the prescribed monetary limit Revision of orders prejudicial to revenue [Sec. 377 (corresponding to sec. 263 of the 1961 Act)] Revision in favour of assessee [Sec. 378 (corresponding to sec. 264 of the 1961 Act)] Dispute Resolution Committee [Sec. 379 (corresponding to sec. 245MA of the 1961 Act)]

26

1193 1194 1200 1203

1206 1206

Special measures in respect of transactions with persons located in notified jurisdictional area

586. Special measures in respect of certain transactions [Sec. 176 (corresponding to sec. 94A of the 1961 Act)] 587. Notified jurisdictional area [Sec. 176(1), corresponding to sec. 94A(1) of the 1961 Act] 588. Applicability of transfer pricing provisions [Sec. 176(2), corresponding to sec. 94A(2) of the 1961 Act] 589. Disallowance of payment to financial institutions located in notified jurisdictional area [Sec. 176(3)(a), corresponding to sec. 94A(3)(a) of the 1961 Act] 590. Disallowance of other expenditure [Sec. 176(3)(b), corresponding to sec. 94A(3)(b) of the 1961 Act] 591. Amount received to be treated as income in some cases [Sec. 176(4), corresponding to sec. 94A(4) of the 1961 Act] 592. TDS at higher rate [Sec. 176(5), corresponding to sec. 94A(5) of the 1961 Act] 593. Provisions illustrated

28

1192

Income-tax authorities

581. Tax authorities [Sec. 236 (corresponding to sec. 116 of the 1961 Act)] 582. Central Board of Direct Taxes [Sec. 239 (corresponding to sec. 119 of the 1961 Act)]

27

1157 1157 1158 1159 1172 1184 1190 1191

1210 1210 1210 1211 1211 1211 1211 1211

General Anti-Avoidance Rule

596. Applicability of general anti-avoidance rule [Sec. 178 (corresponding to sec. 95 of the 1961 Act)] 597. Impermissible avoidance arrangement

1214 1214

Contents

I-22 PAGE

598. When GAAR provisions are not applicable 599. Procedure for invoking GAAR 600. Clarifications given by Board

29

Advance ruling

What is advance ruling Board for Advance Rulings Practical impact of non-binding advance rulings Meaning of applicant and advance ruling [Sec. 380(a)/(b), corresponding to sec. 245N(a)/ (b) of the 1961 Act] 609. How to approach the Board for Advance Rulings 610. Questions on which advance ruling cannot be sought 611. Advance ruling order

605. 606. 607. 608.

30

636. 637. 638. 639. 640. 641. 642. 643. 644. 645. 646. 647.

1218 1218 1218 1219 1220 1222 1223

Search, seizure and assessment

618. Powers regarding discovery, production of evidence, etc. [Sec. 246 (corresponding to sec. 131 of the 1961 Act)] 619. Search and seizure [Sec. 247 (corresponding to sec. 132 of the 1961 Act)] 620. Power to requisition [Sec. 248 (corresponding to sec. 132A of the 1961 Act)] 621. Application of assets seized or requisitioned [Sec. 250 (corresponding to sec. 132B of the 1961 Act)] 622. Power to call for information [Sec. 252 (corresponding to sec. 133 of the 1961 Act)] 623. Power of survey [Sec. 253 (corresponding to sec. 133A of the 1961 Act)] 624. Power to collect certain information [Sec. 254 (corresponding to sec. 133B of the 1961 Act)] 625. Power to call for information by prescribed income-tax authority [Sec. 259 (corresponding to sec. 133C of the 1961 Act)] 626. Special provisions for assessment of search cases [Secs. 292 to 301 (corresponding to secs. 158B to 158BH of the 1961 Act)]

31

1216 1216 1217

1224 1225 1232 1234 1235 1236 1238 1239 1239

Transfer pricing

Taxation of international transaction Meaning of enterprises [Sec. 173(b), corresponding to sec. 92F(iii) of the 1961 Act] Associate enterprises [Sec. 162(1), corresponding to sec. 92A(1) of the 1961 Act] International transaction [Sec. 163 (corresponding to sec. 92B of the 1961 Act)] Computation of the arm’s length price Arm’s length price - Computation of [Sec. 165 (corresponding to sec. 92C of the 1961 Act)] Computation of arm’s length price in cases where more than one price is determined under most appropriate method Reference to transfer pricing officer [Sec. 166 (corresponding to sec. 92CA of the 1961 Act)] Power of Board to make Safe Harbour Rules [Sec. 167 (corresponding to sec. 92CB of the 1961 Act)] Maintenance of books of account and furnishing of report in respect of international group [Secs. 171 and 511 (corresponding to secs. 92D and 286 of the 1961 Act)] Report from accountant Specified domestic transactions [Sec. 164 (corresponding to sec. 92BA of the 1961 Act)]

1245 1246 1246 1247 1249 1251 1257 1267 1271 1276 1281 1281

I-23

Contents PAGE

648. Advance Pricing Agreement (APA) [Secs. 168 and 169 (corresponding to secs. 92CC and 92CD of the 1961 Act)] 649. Secondary adjustment in certain international transactions [Sec. 170 (corresponding to sec. 92CE of the 1961 Act)] 650. Provisions pertaining to thin capitalisation

32

1283 1288

Business restructuring

Restructuring business Amalgamation Demerger Conversion of a sole proprietorship into a company Conversion of a firm into a company Slump sale Transfer of assets between holding and subsidiary companies Amalgamation or demerger of co-operative banks Conversion of a private company/unlisted public company into a limited liability partnership (LLP) 674. Provisions pertaining to successor entity subsequent to business reorganization [Secs. 313, 314 and 290 (corresponding to secs. 170, 170A and 156A of the 1961 Act)] 665. 666. 667. 668. 669. 670. 671. 672. 673.

33

1281

1291 1291 1299 1309 1310 1312 1318 1322 1325 1328

New tax regime

681. New tax regime available under different sections

1329

PART A NEW TAX REGIME FOR EXISTING MANUFACTURING DOMESTIC COMPANIES UNDER SECTION 199 (CORRESPONDING TO SEC. 115BA OF THE 1961 ACT)

682. Manufacturing domestic companies

1329

PART B NEW TAX REGIME FOR DOMESTIC COMPANIES UNDER SECTION 200 (CORRESPONDING TO SEC. 115BAA OF THE 1961 ACT)

683. 684. 685. 686. 687.

Tax on the income of certain domestic companies Conditions and restrictions Tax rate Option MAT not applicable

1330 1330 1331 1331 1332

PART C NEW TAX REGIME FOR NEW MANUFACTURING DOMESTIC COMPANIES UNDER SECTION 201 (CORRESPONDING TO SEC. 115BAB OF THE 1961 ACT)

688. 689. 690. 691. 692. 693. 694. 695.

New manufacturing domestic companies Conditions Mode of computation of income Computation of reasonable profit by Assessing Officer in certain cases [Sec. 205(4), corresponding to sec. 115BAB(6) of the 1961 Act] Computation of tax liability under section 201 (corresponding to sec. 115BAB of the 1961 Act) Option MAT not applicable Case study

1332 1332 1333 1333 1333 1334 1334 1334

Contents

I-24 PAGE

PART D NEW TAX REGIME FOR INDIVIDUAL/HUF/AOP/BOI/AJP UNDER SECTION 202 (CORRESPONDING TO SEC. 115BAC OF THE 1961 ACT)

Income of individual, HUF, AOP, BOI, and artificial juridical person Rate of income-tax under the new tax regime [Sec. 202(1)] Conditions and restrictions [Sec. 202(2), corresponding to sec. 115BAC(2) of the 1961 Act] Option to avail the benefit of the old tax regime [Sec. 202(4), corresponding to sec. 115BAC(6) of the 1961 Act] 700. How to find out whether (or not) the new tax regime is better for the assessment year 2026-27 and tax year 2026-27 701. Case studies 696. 697. 698. 699.

1335 1335 1337 1339 1340 1340

PART E NEW TAX REGIME FOR RESIDENT CO-OPERATIVE SOCIETIES UNDER SECTION 203 (CORRESPONDING TO SEC. 115BAD OF THE 1961 ACT)

702. 703. 704. 705. 706.

Tax on certain resident co-operative societies Conditions and restrictions under section 203 Tax rate Option [Sec. 203(5)] Case studies

1344 1344 1344 1345 1345

PART F NEW TAX REGIME FOR NEW MANUFACTURING RESIDENT CO-OPERATIVE SOCIETY UNDER SECTION 204 (CORRESPONDING TO SEC. 115BAE OF THE 1961 ACT)

707. 708. 709. 710. 711.

New manufacturing co-operative society Conditions Mode of computation of income Computation of tax liability under section 204 [corresponding to sec. 115BAE of the 1961 Act] Option

34 718. 719. 720. 721. 722. 723. 724.

731. 732. 733. 734. 735.

Tax planning

Tax planning Tax planning with reference to setting up of a new business Tax planning with reference to financial management decisions Tax planning with reference to specific managerial decisions Tax planning in respect of employees’ remuneration Tax planning in respect of non-residents Tax planning in respect of amalgamation or demerger of companies or business restructuring

35

1346 1346 1347 1347 1348

1349 1351 1352 1353 1356 1359 1365

Repeal and savings: Enduring legal consequences from the 1961 Act to the 2025 Act

Carry over the effect of the 1961 Act in the 2025 Act Past orders [Sec. 536(2)(a)/(b)] Pending and fresh proceedings under the 1961 Act [Sec. 536(2)(c)] Penalty proceedings [Sec. 536(2)(d)] Proceedings before income-tax authority and appellate authorities - Pending on April 1, 2026 [Sec. 536(2)(e)]

1366 1366 1366 1367 1367

I-25

Contents

736. 737. 738. 739. 740.

Options exercised under the 1961 Act to remain effective [Sec. 536(2)(f)] Refund and default of tax [Sec. 536(2)(g)] Deduction claimed under the 1961 Act [Sec. 536(2)(h)] Recovery of tax arrears [Sec. 536(2)(i)] Double taxation avoidance agreement, circulars, notifications, instructions, directions issued under the 1961 Act [Sec. 536(2)(j)] Time-limit for appeal, reference or revision expired before April 1, 2026 [Sec. 536(2)(k)] Tax credit under section 115JAA/115JD of the 1961 Act [Sec. 536(2)(l)] Losses under the 1961 Act : Carry forward into the 2025 Act [Sec. 536(2)(m)] Loss under the head “Capital gains” [Sec. 536(2)(n)] Loss or depreciation allowance in the hands of successors [Sec. 536(2)(o)] Accumulated loss or unabsorbed depreciation of co-operative bank [Sec. 536(2)(p)] Exempted capital gain on conversion [Sec. 536(2)(q)] Depreciation and asset used for scientific research [Sec. 536(2)(r)] Deductions eligible for amortization [Sec. 536(2)(s)] Provision for bad and doubtful debts [Sec. 536(2)(t)] Any other notified scheme [Sec. 536(2)(u)] Search cases [Sec. 536(2)(v)] Reference to tax year [Sec. 536(3)] General Clauses Act, 1897 [Sec. 536(4)]

PAGE

741. 742. 743. 744. 745. 746. 747. 748. 749. 750. 751. 752. 753. 754.

36

1368 1368 1368 1369 1369 1370 1370 1370 1371 1371 1371 1372 1372 1372 1373 1373 1373 1374 1374

Miscellaneous

772. Tax clearance certificate 773. Salient features of Tonnage Tax [Secs. 225 to 235 (corresponding to secs. 115V to 115VZC of the 1961 Act)] 774. Securities transaction tax 775. Restriction on cash transactions [Secs. 186 and 451 (corresponding to secs. 269ST and 271DA of the 1961 Act)] 776. Facility for electronic communication [Sec. 501 (corresponding to sec. 282 of the 1961 Act)] 777. Document Identification Number (DIN) [Sec. 522(1) (corresponding to sec. 292BC of the 1961 Act)] 778. Power to withdraw approvals [Sec. 529 (corresponding to sec. 293C of the 1961 Act)] 779. Commodities transaction tax

1375 1376 1378 1380 1383 1383 1384 1384

ANNEXURES 1. 2.

Tax rates Rates of depreciation

1385 1410

CHAPTER TWO

Residential status and tax incidence What is the relevance of residential status 22. There are two types of taxpayers—residents in India and non-residents in India. Indian income is taxable in India, whether the person earning it is a resident or a non-resident. Conversely, a person’s foreign income is taxable in India only if the person is a resident in India. Foreign income of a non-resident is not taxable in India.

Residential status - General norms 23. One must keep in mind the following norms while deciding the residential status of an assessee : 23.1 Different taxable entities - Section 6 lays down the test of residence for the following taxable entities : a. an individual; b. a Hindu undivided family; c. a firm or an association of persons or a body of individuals; d. a company; and e. every other person. 23.2 Different kinds of residential status - Assessees are either (a) resident in India, or (b) non-resident in India. As far as resident individuals and Hindu undivided families are concerned, they can be further divided into two categories, viz., (a) resident and ordinarily resident, or (b) resident but not ordinarily resident. All other assessees (viz., a firm, an association of persons, a company and every other person) can be either a resident or a non-resident. 23.3 Different residential status in respect of different sources of income in the same tax year [Sec. 6(12), corresponding to sec. 6(5) of the 1961 Act] - If a person is resident in a tax year for any source of income, he shall be deemed to be resident in India in that tax year(s) for each of his other sources of income [see problem 24-P9]. 23.4 Residential status may vary across tax years - An assessee may have different residential status in different tax years. For example, an individual who has been regularly assessed as a resident and ordinarily resident shall be treated as a non-resident in a particular tax year if, in that year, he satisfies none of the conditions specified in section 6(2). 23.5 Resident in India and abroad - It is not necessary that a person who is resident in India cannot become resident in any other country for the same tax year. A person may be a resident in more than one country at the same time for tax purposes, though he cannot have two domiciles simultaneously. It is, therefore, not necessary that a person who is resident in India will be non-resident for all other countries for the same tax year. 23.6 Onus of proof - Whether an assessee is a resident or a non-resident is a question of fact, and it is the duty of the assessee to place all relevant facts before the Income-tax authorities—Rai Bahadur Seth Teomal v. CIT [1963] 48 ITR 170 (Cal.). In the case of V.VR. N.M. Subbayya Chettiar v. CIT [1951] 19 ITR 168, the Supreme Court held that section 6(9) makes a presumption that a Hindu undivided family, a firm, or an association of persons has to be a resident in India, and the onus of proving that they are not residents is on them. However, the burden of proving that an individual or a company is resident in India lies on the department—Moosa S. Madha & Azam S. Madha v. CIT [1973] 89 ITR 65 (SC). 40

41

Resident and ordinarily resident

Para 24.1

Residential status of an individual [Sec. 6(1)/(2)/(3)/(4)/(5)/(6)/(7)/(8)] 24. An individual may be (a) resident and ordinarily resident, (b) resident but not ordinarily resident, or (c) non-resident. 24.1 Resident and ordinarily resident - To find out whether an individual is “resident and ordinarily resident” in India, one has to proceed as follows— Step 1 - First, find out whether such an individual is “resident” in India [see para 24.1-1]. Step 2 - If such an individual is “resident” in India, then find out whether he is “ordinarily resident” in India [see para 24.1-2]. 24.1-1 BASIC CONDITIONS TO TEST AS TO WHEN AN INDIVIDUAL IS RESIDENT IN INDIA - Under section 6(2), an individual is said to be resident in India in any tax year, if he satisfies at least one of the following basic conditions— a. he is in India for a total period of 182 days or more in the tax year; or b. he is in India cumulatively for 60 days or more during the tax year and 365 days or more in the 4 years preceding such tax year. Exceptions - The rule governing residential status, based on fulfilment of either of the two conditions stated above, shall be subject to the exceptions outlined below – 1. Exception one - By virtue of section 6(3), an Indian citizen who leaves India during the tax year either for the purpose of employment outside India or as a member of the crew1 of an Indian ship, shall be treated as a resident only if Condition (a) is fulfilled; Condition (b) shall not apply in such cases. For this purpose, the requirement is not leaving India for taking employment outside India but leaving India for the purposes of employment (the employment may be in India or may be outside India). To put it differently, the individual need not be an unemployed person—British Gas India (P.) Ltd., In re [2006] 155 Taxman 326 (AAR - New Delhi). He may be employed in India and leave India during the tax year on a foreign assignment for his employer company. Alternatively, he may be an unemployed person who goes outside India to take employment. 2. Exception two - By virtue of section 6(4), an Indian citizen (or a person of Indian origin) who is outside India and comes on a visit to India in a tax year can become resident only if Condition (a) is satisfied. Condition (b) shall not apply in such a case. A person is deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in undivided India. 3. Exception three - In certain cases, specified under section 6(5)/(7), an individual may be deemed a “resident” even if neither of the two basic conditions for residency is satisfied. For these provisions, see para 24.3-1. 24.1-2 ADDITIONAL CONDITIONS TO TEST WHEN A RESIDENT INDIVIDUAL IS ORDINARILY RESIDENT IN INDIA - Under section 6(13), a resident individual is treated as “resident and ordinarily resident” in India if he satisfies the following additional conditions— i. he has been resident2 in India in at least 2 out of 10 years immediately preceding the relevant tax year; and ii. he has been in India for a period of 730 days or more during the 7 years immediately preceding the relevant tax year. Exceptions - For a few exceptions, see para 24.3-1. 24.1-2a OTHER POINTS - In determining the residential status of an assessee, the following settled propositions have to be borne in mind : 1. In the case of an individual, being a citizen of India and a member of the crew of a foreign-bound ship leaving India, the period or periods of stay in India shall not include the period given in rule 8 (corresponding to rule 126 of the 1962 Rules). Under rule 8, the period beginning on the date entered into the Continuous Discharge Certificate in respect of joining the ship by the said individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate in respect of signing off by that individual from the ship in respect of such voyage, shall not be included in the period of stay in India. 2. According to basic conditions given in para 24.1-1.

Para 24.2

Income-tax - Residential status and tax incidence

42

Stay at the same place not necessary - It is not essential that the stay should be at the same place— Kinloch v. IRC 14 TC 736. It is equally unnecessary that the stay be continuous. Similarly, the place or purpose of stay is not material. Stay in territorial waters -A stay by an individual on a yacht moored in the territorial waters of India would be treated as his presence in India for the purpose of this section—Baryard Brown v. Burt 5 TC 667. Presence for a part of a day - Where a person is in India only for a part of a day, the calculation of physical presence in India in respect of such broken period should be made on an hourly basis. A total of 24 hours of stay spread over a number of days is to be counted as being equivalent to the stay of one day—Walkie v. IRC [1952] 1 AER 92. If, however, data is not available to calculate the period of stay of an individual in India in terms of hours, then the day on which he enters India as well as the day on which he leaves India shall be taken into account as stay of the individual in India—Advance Ruling P. No.7 of 1995, In re [1997] 90 Taxman 62 (AAR - New Delhi). Involuntary stay - Involuntary stay of a person in India caused by unauthorized impounding of passport must be excluded for determining his residential status under section 6—CIT v. Suresh Nanda [2015] 233 Taxman 4 (Delhi). 24.2 Resident but not ordinarily resident [Sec. 6(13)(a)] - An individual who satisfies one or more of the basic conditions laid down in section 6(2) but does not satisfy the two additional conditions laid down in section 6(13) is treated as resident but not ordinarily resident in India. Exceptions - For a few exceptions, see para 24.3-1. 24.3 Non-resident - An individual is a non-resident in India during the tax year if he satisfies none of the basic conditions laid down in section 6(2) [see para 24.1-1]. 24.3-1 EXCEPTIONS - Even if an individual satisfies none of the two basic conditions, he is deemed to be resident but not ordinarily resident in the cases given below – First exception - This exception is provided under section 6(7), read with section 6(13)(c). A corresponding exception has been in effect under the 1961 Act since the previous year 2020-21. Under this exception, an individual shall be deemed to be resident but not ordinarily resident in India, if he satisfies the following 4 conditions – a. he is an Indian citizen; b. he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of a similar nature, and c. his total income (other than the income from foreign sources) exceeds Rs. 15,00,000 during the relevant tax year; d. he is not a resident in India within the parameters of section 6(2). This exception does not apply to a foreign citizen, even if he is of Indian origin. Second exception - This exception is provided under section 6(5) read with section 6(13)(b). A corresponding exception has been in effect under the 1961 Act since the previous year 2020-21. Under this exception, an individual shall be deemed to be resident but not ordinarily resident in India if he satisfies the following 4 conditions – a. he is an Indian citizen or a person of Indian origin; b. his total income (other than the income from foreign sources) exceeds Rs. 15,00,000 during the relevant tax year; c. he comes to India on a visit during the relevant tax year, and d. he is in India for 120 days or more (but less than 182 days) during the relevant tax year and 365 days (or more) during 4 years immediately preceding the relevant tax year. 24.3-1a OTHER POINTS - For the aforesaid two exceptions, the following should be kept in view – How to find out the total income of Rs. 15,00,000 - The total income for the ceiling of Rs. 15,00,000 is calculated after ignoring income from foreign sources. “Income from foreign sources” means income which accrues or arises outside India (except income derived from a business controlled in or

43

Rule of residence in brief

Para 24.4

a profession set up in India). Income which is deemed to accrue or arise in India shall be included in the computation of the ceiling of Rs. 15,00,000. Liable to tax - “Liable to tax” (in relation to a person and with reference to a country) means that there is an income-tax liability on such person under the law of that country for the time being in force and shall include a person who has subsequently been exempted from such liability under the law of that country. Person of Indian origin - A person is deemed to be of Indian origin if he, or either of his parents or any of his grandparents, was born in undivided India. 24.4 Rule of residence in brief - The table below summarizes the residential status rules applicable for the tax year 2026-27. However, the exceptions detailed in para 24.3-1 must also be considered – An Indian citizen who leaves India during the tax year 2026-27 for the purpose of employment or, as a member of the crew of an Indian ship (1) a. Presence for at least 182 days in India during the tax year 2026-27 b. Not applicable

BASIC CONDITIONS AT A GLANCE An Indian citizen or a person of Indian origin (who is abroad) who comes to India on a visit during the tax year 2026-27 (2) a. Presence for at least 182 days in India during the tax year 2026-27 b. Not applicable

An individual [other than an individual mentioned in columns (1) and (2)]

(3) a. Presence for at least 182 days in India during the tax year 2026-27 b. Presence in India for at least 60 days during the tax year 2026-27 and 365 days during April 1, 2022 to March 31, 2026.

ADDITIONAL CONDITIONS AT A GLANCE i. Resident in India in at least 2 years during financial years 2016-17 to 2025-26 [or must have satisfied at least one of the basic conditions, in 2 out of 10 immediately preceding financial years] (i.e., during the financial years 2016-17 to 2025-26). ii. Presence of at least 730 days in India during April 1, 2019 and March 31, 2026. RULE OF RESIDENCE AT A GLANCE Resident and ordinarily resident Resident and not ordinarily resident Must satisfy at least one of the basic Must satisfy at least one of the basic conditions and both of the additional conditions and one or none of the conditions [i.e., one of (a) or (b) and both additional conditions [i.e., one of (a) or of (i) and (ii)] (b) and one or none of (i) or (ii)]

Non-resident Should not satisfy any of the basic conditions.

24-P1 X, a foreign national (not being a person of Indian origin), came to India for the first time from USA on July 11, 2020. He stayed here for 3 years and left for Japan on July 11, 2023. He returned to India on April 10, 2024, and remained there until August 17, 2024, when he returned to the USA. He again came back to India on January 30, 2027 at 11.59 p.m. and continued to stay in India thereafter. Determine his residential status for the tax year 2026-27. SOLUTION: During the tax year 2026-27, X is in India for a period of 60 days (i.e., January 2027 : 1 + February 2027 : 28 days + March 2027 : 31 days). Moreover, during the 4 years immediately preceding the tax year 202627, he is in India for 597 days (i.e., 2022-23 : 365 days, 2023-24 : 102 days, 2024-25 : 130 days, and 2025-26 : Nil). Thus, he satisfies condition (b) mentioned in para 24.1-1 (namely, presence of at least 60 days during the tax year and 365 days during 4 years preceding the tax year). He, therefore, becomes resident in India. A resident individual may either be ordinarily resident or not ordinarily resident in India. To determine it, one must apply the test of two additional conditions mentioned in para 24.1-2. During 7 years immediately preceding the tax year 2026-27, X is in India for 1228 days and during 10 years immediately preceding the tax year 2026-27, he is resident in India for 5 years as follows: Year

Presence in India (number of days)

Resident (R) or nonresident (NR)

2025-26 2024-25

Nil 130

NR R

Which of the condition (a) or (b) of para 24.1-1 is satisfied to become resident or non-resident None (b)

Para 24.4

Income-tax - Residential status and tax incidence

Year

Presence in India (number of days)

Resident (R) or nonresident (NR)

2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17

102 366 365 264 Nil Nil Nil Nil

R R R R NR NR NR NR

44

Which of the condition (a) or (b) of para 24.1-1 is satisfied to become resident or non-resident (b) (a) as well as (b) (a) (a) None None None None

Thus, he satisfies one of the basic conditions and the two additional conditions. He will, therefore, be treated as resident and ordinarily resident in India for the tax year 2026-27. If X comes to India at any time after zero hour on January 30, 2027, he will be non-resident for the tax year 2026-27. 24-P2 X, a chief executive of a company, had undertaken foreign tours on various occasions for the company’s work and was out of India for a total number of 255 days during the tax year ending March 31, 2027. He submits his return of income for the tax year 2026-27 in the status of non-resident. Is he justified? He visited a foreign country for the first time during May 2025. SOLUTION: In the given problem, X had left India for purposes of employment outside India. He can become resident in India only if he is in India for at least 182 days during the tax year 2026-27. Since his total stay in India during the said year is less than 182 days, he will be treated as non-resident for the tax year 2026-27. Hence, the submission of his return of income for the tax year 2026-27 in the status of non-resident is justified. 24-P3 During his 196-day stay in India in the tax year 2026-27, X, a citizen of the UK, was always moving from one place to another. He claims that he is a non-resident in India for the tax year 2026-27 on the following grounds : 1. He had never visited India before April 1, 2026. 2. During 2026-27, though he is in India for 196 days, he could not spend two consecutive nights at any one place. 3. For the tax year 2026-27, he is resident in the U.K. according to the English Income-tax Act. He insists that he cannot be resident of two countries for the same tax year. Do you agree with him? SOLUTION: The claim of X is not tenable, as he is in India for 196 days during the tax year 2026-27. He satisfies one of the two basic conditions (namely, the presence of 182 days or more during the tax year 2026-27) and none of the additional conditions. He is, therefore, a resident but not ordinarily resident in India for the tax year 2026-27. The fact that he could not spend two consecutive nights at any one place is immaterial. Moreover, a person who is resident in India may become a resident of any other country according to the tax laws of that country for the same or a different tax year. 24-P4 X, after about 30 years’ stay in India, returns to America on January 29, 2024. He returns to India in June 2026 to join an American company as its overseas branch manager. Determine his residential status for the tax year 2026-27. SOLUTION: During 2026-27, X is in India for more than 275 days. He is, therefore, a resident in India. He is resident in India for 2 years out of 10 years (i.e., 2016-17 to 2025-26), and he has stayed for more than 730 days during the seven years preceding the tax year 2026-27. He is, therefore, resident and ordinarily resident in India for the tax year 2026-27. 24-P5 X sets up a new profession on January 14, 2026, and keeps his books of account on the basis of the financial year. Though he has never gone out of India, he claims that he is resident and not ordinarily resident for the tax year 2026-27. In support of his claim, he submits that he does not fulfil one of the additional conditions (i.e., he is not resident in India for at least 2 out of 10 preceding years), as he has not been assessed as resident during 2 out of the preceding 10 years due to the absence of taxable income. Comment on the claim of X and determine his residential status for the tax year 2026-27. SOLUTION: The claim of X is not acceptable. Section 6(13) lays down additional conditions for determining whether a resident individual qualifies as “ordinarily resident.” These conditions relate to physical presence in India during the preceding 7 years and residential status during the preceding 10 years. Importantly, residential

45

Rule of residence in brief

Para 24.4

status for the preceding 10 years must be determined irrespective of whether the individual was assessed as a resident in those years. In other words, the mere absence of taxable income in the preceding ten years does not make an individual non-resident simply because he was not assessed as resident during that period. Accordingly, X’s claim is unjustified. Since X has never left India, he satisfies both the basic and additional conditions and will therefore be treated as a resident and ordinarily resident for the tax year 2026-27. 24-P6 X is a foreign citizen, not being a person of Indian origin. Determine his residential status for the tax year 2026-27 on the assumption that during financial years 2012-13 to 2026-27 he was present in India as follows : 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

221 days 22 days 50 days 72 days 130 days 340 days 30 days

2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

160 days 96 days 286 days 100 days 182 days 85 days 280 days 86 days

SOLUTION: During 2026-27, X is in India for a period of 86 days and during four years preceding the tax year

2026-27, he is in India for 647 days. Thus, he satisfies one of the two basic conditions laid down by section 6(2) [i.e., condition (b) mentioned in para 24.1-1] and, consequently, he becomes resident in India. A resident individual may either be an ordinarily resident or not ordinarily resident. To determine whether X is ordinarily resident or not ordinarily resident, one must test the two additional conditions as laid down by section 6(13) [see conditions (i) and (ii) in para 24.1-2]. Information presented in the Table given below may be used to test the additional conditions : Year 2027-28 2024-23 2023-22 2022-21 2021-20 2020-19 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13

Presence in India (number of days) 280 85 182 100 286 96 160 30 340 130 72 50 22 221

Status Resident Resident Resident Resident Resident Resident Resident Non-resident Resident Resident

Which of the condition (a) or (b) [para 24.1-1] is satisfied to become resident or non-resident (a) or (b) (b) (a) or (b) (b) (a) or (b) (b) (b) None (a) (b)

Not necessary to determine

Condition (i) of para 24.1-2 - This condition requires that an individual should be resident in India for at least 2 out of 10 years immediately preceding the relevant tax year. X, in the present case, is resident in India in 9 years out of 10 years (i.e., during 2016-17 to 2025-26, he is resident in India in all the years except 2018-19). He, thus, satisfies this condition. Condition (ii) of para 24.1-2 - This condition requires that an individual should be present in India for at least 730 days during 7 years immediately preceding the relevant tax year. X is in India for 1189 days during 2019-20 to 2025-26. He, thus, satisfies this condition. X satisfies one of the two basic conditions and the two additional conditions. He is, therefore, resident and ordinarily resident in India for the tax year 2026-27. 24-P7 X is a foreign citizen (not being a person of Indian origin). Since 1981, he visits India every year in the month of April for 100 days. Find out the residential status of X for the tax year 2026-27. SOLUTION: During the tax year 2026-27, X is in India for 100 days and during 4 years preceding the year 2026-27 (i.e., 2022-23 to 2025-26), he is in India for 400 days. Thus, he satisfies basic condition (b) to become resident in India. To determine, whether a resident individual is ordinarily resident or not ordinarily resident, one has to test two additional conditions as laid down by section 6(13).

Para 24.4

Income-tax - Residential status and tax incidence

46

Condition (i) of para 24.1-2 - Every year X satisfies basic condition (b), as he is in India for 100 days during the relevant tax year 2026-27 and 400 days during 4 years preceding the tax year. Therefore, he satisfies this condition. Condition (ii) of para 24.1-2 - X is in India for 700 days during 7 years prior to the tax year 2026-27. He does not satisfy this condition. X satisfies one of the basic conditions and one of the two additional conditions. He is, therefore, resident but not ordinarily resident in India for the tax year 2026-27. 24-P8 X (a foreign citizen, not a person of Indian origin) arrives in India for the first time on September 1, 2026. On September 15, 2026, he joins a company on monthly salary of Rs. 60,000, as a part-time production consultant (duty hours - 6:30 PM to 9:30 PM). Prior to September 15, 2026, X does not have any source of income. On October 9, 2026, he starts a computer hardware trading business after obtaining approval from his employer. For the tax year ending March 31, 2027, he has the following income : Salary from part-time employment : Rs. 43,90,000, income from the business of trading in computer hardware in India : Rs. 7,86,000; and foreign income from the same business : $ 40,000. Find out the residential status of X for the tax year 2026-27. SOLUTION: For the tax year 2026-27, X has the following sources of income in India – Sources of income Salary income Business income

Tax year September 15, 2026 to March 31, 2027 October 9, 2026 to March 31, 2027

Number of days when X was in India 198 days 174 days

For the first source of income, X becomes a resident in India by satisfying one of the basic conditions. As he comes to India for the first time in 2026, he is unable to satisfy any of the additional conditions. Thus, he is a resident but not ordinarily resident in India for the first source of income. For the second source of income, X is a non-resident, as he satisfies none of the basic conditions. It may be noted that he is non-resident in India for the business income and resident but not ordinarily resident for the salary income. In view of section 6(12), if a person is resident in India for one of the sources of income, he will be deemed to be resident in India for all other sources of income in the same tax year. In respect of the tax year 2026-27, X will, therefore, be regarded as resident but not ordinarily resident for all sources of income. 24-P9 X is an Indian citizen. Currently, he is employed with an overseas company located in Dubai. During different years, he has been in India as follows – Financial year 2026-27 2025-26 2024-25

Presence in India 55 days 190 days 200 days

Financial year 2023-24 2022-23 2021-22

Presence in India 170 days 200 days 250 days

Financial year 2020-21 2019-20 2018-19

Presence in India 70 days 71 days 72 days

For the tax year 2026-27, X is not taxable in Dubai or in any other country/territory by reason of his domicile or residence. Income of X (other than income from foreign sources) for the tax year 2026-27 is Rs. 16,00,000 (Situation 1) or Rs. 14,00,000 (Situation 2). X wants to know his residential status for the tax year 2026-27. SOLUTION:

Situation 1 - X is in India for 55 days during the tax year 2026-27. He is unable to satisfy any of the basic conditions set out in section 6(2). However, he satisfies the following 3 conditions given by section 6(7) read with section 6(13)(c) – a. X is an Indian citizen; b. his total income (other than the income from foreign sources) exceeds Rs. 15,00,000 during the relevant tax year, and c. he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature. He is deemed to be a resident in India under section 6(7). But he is resident but not ordinarily resident in India by virtue of section 6(13)(c). The data given in the table pinpoints that X is resident in India for 4 years out of preceding 10 years and he is in India for 1151 days out of preceding 7 years. He satisfies the two conditions given by section 6(13)(a). However, the additional conditions of section 6(13)(a) are not relevant when a person is deemed to be resident in India within the parameters of section 6(13)(c).

47

Residential status of a Hindu undivided family

Para 25

Situation 2 - X does not satisfy the conditions of section 6(7). Moreover, he does not satisfy the conditions of section 6(2). Consequently, he is non-resident in India for the tax year 2026-27. 24-P10 X is an Indian citizen. Currently, he is employed with a multinational company and is posted in Singapore. During the tax year 2026-27, he comes to India for a visit of 145 days. In earlier 4 years, he is in India for more than 900 days. X wants to know his residential status for the tax year 2026-27. His annual income for the tax year 2026-27 is as follows – Income from salary, rent, consultancy, and interest earned and received in Singapore Income from business (accrued and received outside India, controlled from Singapore) Income from another business (accrued and received outside India, controlled from India) Interest on bank fixed deposits in India Any other income in India or outside India Life insurance premium paid in India

Rs. 29,00,000 21,00,000 8,00,000 11,00,000 Nil 2,60,000

SOLUTION: In the tax year 2026-27, X is in India for 145 days. Total income of X (other than income from

foreign sources) is Rs. 17,50,000 (i.e., Rs. 8,00,000 + Rs. 11,00,000 – deduction under section 80C : Rs. 1,50,000). X satisfies 4 conditions of the second exception [see para 24.3-1] as follows – a. X is an Indian citizen or a person of Indian origin; b. total income of X (other than the income from foreign sources) exceeds Rs. 15,00,000 during the relevant tax year; c. he comes to India on a visit during the tax year 2026-27, and d. he is in India for 145 days (i.e., his Indian visit is for 120 days or more but less than 182 days) during the relevant tax year and 365 days (or more) during 4 years immediately preceding the relevant tax year. Consequently, for the tax year 2026-27, X is resident but not ordinarily resident in India. 24-P11 X is an Indian citizen (or he is a person of Indian origin). He wants to know his residential status in India for the tax year 2026-27 in the following different possible situations – a. if he visits India during the tax year 2026-27 for less than 120 days; or b. if he visits India during the tax year 2026-27 for 120 days or more but not more than 181 days; or c. if he visits India during the tax year 2026-27 for 182 days or more. SOLUTION: The table given below highlights the provisions of regulating residential status in the case of an Indian citizen or person of Indian origin who visits India during the relevant tax year – How many days an Indian citizen/a person of Indian origin visits India during the relevant tax year Less than 120 120 days or more but not more than 181 days 182 days or more days Non-resident If he satisfies both of the following conditions, If he satisfies both of the following conditions, in India he will be resident but not ordinarily resident – he will be resident and ordinarily resident – - During the preceding 4 years, he was in India - He has been resident in India in at least 2 out for 365 days or more; and of 10 years immediately preceding the relevant tax year; and - His taxable income (other than the income from foreign sources) exceeds Rs. 15,00,000 - He has been in India for a period of 730 days or during the relevant tax year more during the 7 years immediately preceding the relevant tax year. If he satisfies one or none of the above two If he satisfies one or none of the above two conditions, he will be non-resident in India conditions, he will be resident but not ordinarily resident

Residential status of a Hindu undivided family [Sec. 6(9) (corresponding to sec. 6(2) of the 1961 Act)] 25. A Hindu undivided family (like an individual) is either resident in India or non-resident in India. A resident Hindu undivided family is either ordinarily resident or not ordinarily resident.

Para 25.1

Income-tax - Residential status and tax incidence

48

25.1 When a Hindu undivided family is resident or non-resident - A Hindu undivided family is said to be resident in India if control and management of its affairs is wholly or partly situated in India. A Hindu undivided family is non-resident in India if control and management of its affairs is wholly situated outside India. The table given below highlights the same proposition — Place of control Control and management of the affairs of a Hindu undivided family is — - Wholly in India - Wholly out of India - Partly in India and partly outside India

Residential status of family

Ordinarily resident or not

Resident Non-resident Resident

See para 25.2 – See para 25.2

Note - In determining whether a Hindu undivided family is resident or non-resident, the residential status of the karta of the family during the tax year is not relevant. Residential status of the karta during the preceding years is considered for determining whether a resident family is “ordinarily resident”—see para 25.2.

25.1-1 WHAT IS “CONTROL AND MANAGEMENT” - Different courts have defined the term “control and management” as follows — De facto control - Control and management means de facto control and management, and not merely the right to control or manage—CIT v. Nandlal Gandalal [1960] 40 ITR 1 (SC). Place of control and management - Control and management are situated at a place where the head, the seat, and the directing power are situated. The head and brain are situated where vital decisions concerning the policies of the business—such as raising finance and its appropriation for specific purposes, appointment and removal of staff, expansion, extension, or diversification of business—are taken—San Paulo (Brazilian) Railway Co. v. Carter [1886] AC 31 (HL). Residence of HUF in India - The mere fact that the family has a house in India, where some of its members reside or the karta is in India in the tax year, does not constitute that place as the seat of control and management of the affairs of the family, unless the decisions concerning the affairs of the family are taken at that place. The mere fact of the absence of karta from India does not make the family non-resident—Annamalai Chettiar v. ITO [1958] 34 ITR 88 (Mad.). Broad propositions - The following propositions can be stated on the basis of the rulings given in Subbayya Chettiar v. CIT [1951] 19 ITR 163 (SC) and Narasimha Rao Bahadur v. CIT [1950] 18 ITR 181 (Mad.)— 1. Generally, HUF shall be taken to be resident in India unless control and management of its affairs is situated wholly outside India. 2. HUF may be residing in one place and doing a great deal of business in other place. 3. Occasional visit of a non-resident karta to the place of HUF’s business in India would be insufficient to make HUF ordinarily resident in India. 25.2 When a resident Hindu undivided family is ordinarily resident in India - A resident Hindu undivided family is ordinarily resident in India if the karta or manager of the family (including successive karta) satisfies the following two additional conditions as laid down by section 6(13)(a) [corresponding to sec. 6(6)(b) of the 1961 Act] – Additional condition (i) Additional condition (ii)

Karta has been resident in India in at least 2 out of 10 tax years [according to the basic condition mentioned in para 24.1-1] immediately preceding the relevant tax year Karta has been present in India for a period of 730 days or more during 7 years immediately preceding the tax year.

If the karta or manager of a resident Hindu undivided family does not satisfy the two additional conditions, the family is treated as resident but not ordinarily resident in India. 25-P1 The Head Office of XY, a Hindu undivided family, is situated in Hong Kong. The family is managed by Y (since 1980) who is resident in India in only 3 out of 10 years preceding the tax year 2026-27 and he is present in India for more

49

What is “control and management”

Para 26.1

than 729 days during the last 7 years. Determine the residential status of the family for the tax year 2026-27 if the affairs of the family’s business are (a) wholly controlled from Hong Kong, (b) partly controlled from India. SOLUTION: If affairs of a Hindu undivided family are controlled from a place outside India, the family will be non-resident. Accordingly XY Hindu undivided family is non-resident for the tax year 2026-27 under situation (a). Under situation (b), affairs of the family’s business are partly controlled from India during the tax year 2026-27. Therefore, the family is resident in India. However, it would be ordinarily resident in India if karta satisfies the following two conditions laid down by section 6(13)(a) : 1. He has been resident in India in at least 2 out of 10 years preceding the tax year. 2. He has been present in India for at least 730 days during the seven years preceding the tax year. As the karta is resident in India in 3 out of 10 years preceding the tax year, the family would be resident and ordinarily resident in India for the tax year 2026-27 in situation (b). 25-P2 A Hindu undivided family (X is karta, A, B and C are other coparceners) carries on a cloth business in Burma. A comes to India and starts a cloth business in Mumbai in partnership with others. The capital supplied by A to this firm is found to have come from the family. Subsequently, B joins the firm as a partner. Later on another business is started at Banaras with the same persons and one outsider as a partner. C joins this firm. The Assessing Officer wants to treat the family as resident on the ground that its coparceners are partners in the firms, financed out of the family funds, and the firms are resident in India. Is the Assessing Officer legally correct ? SOLUTION: A case on similar facts was examined by the Supreme Court of India in the case of CIT v. Nandlal Gandalal [1960] 40 ITR 1, wherein the Court pointed out that both under the Hindu law and under the law of partnership, the Hindu undivided family as such could exercise no control over the management of a firm in which some of its coparceners were partners, even if capital contributed by coparceners was found to have come from the family. The position under Hindu law regarding a coparcener who has entered into a partnership with others is well settled. The partnership is a contractual partnership and is governed by the Indian Partnership Act, 1932. The partnership is between the coparcener individually and the partners and not between the family and other partners. This remains so even if the coparcener is accountable to the family for the income received. Thus, control and management of the firm’s business lies in the hands of individual coparceners and not in the hands of the family. The Assessing Officer is, therefore, not justified while holding the Hindu undivided family as resident in India.

Residential status of the firm and association of persons [Sec. 6(9) (corresponding to sec. 6(2) of the 1961 Act)] 26. A partnership firm and an association of persons are said to be resident in India if control and management of their affairs are wholly or partly situated within India during the relevant tax year. They are, however, treated as non-resident in India if control and management of their affairs are situated wholly outside India. The above rule may be summarised as follows — Place of control Control and management of the affairs of a firm/association of persons is — Wholly in India Wholly outside India Partly in India and partly outside India

Residential status Resident Non-resident Resident

Note - A firm/an association of persons cannot be “ordinarily” or “not ordinarily resident”. The residential status of the partners/members of the firm/association is not relevant in determining the status of the firm/association.

26.1 What is “control and management” - While in the case of a firm, control and management is vested in partners, in case of an association of persons it is vested in the principal officer. Control and management means de facto control and management and not merely the right to control or manage. Control and management is usually situated at a place where the head, the seat and the directing power are situated. Where the partners of a firm are resident in India, the normal presumption is that the firm is resident in India. This presumption can, however, be effectively rebutted

Para 27

Income-tax - Residential status and tax incidence

50

by showing that the control and management of the affairs of the firm is situated wholly outside India. The onus of rebutting the presumption is on the assessee.

Residential status of a company [Sec. 6(10), corresponding to sec. 6(3) of the 1961 Act] 27. Residential status of a company is determined as follows – Section 6(10)(a)(i) 6(10)(a)(ii)

6(10)(a)(ii)

Company Indian company A foreign company (whose turnover/gross receipt in the tax year is more than Rs. 50 crore) A foreign company (whose turnover/ gross receipts in the tax year is Rs. 50 crore or less)

Residential status Always resident in India [Note 1] It will be resident in India if its Place of Effective Management (POEM), during the relevant tax year, is in India [Note 2] Always non-resident in India [Note 3]

Notes – 1. An Indian company is always resident in India. Even if an Indian company is controlled from a place located outside India (or even if shareholders of an Indian company controlling more than 51 per cent voting power are non-resident and/or located outside India), the Indian company is resident in India. An Indian company can never be non-resident. 2. A foreign company is resident in India if its place of effective management (POEM), during the relevant tax year, is in India. For this purpose, the place of effective management means a place where key management and commercial decisions that are necessary for the conduct of the business of an entity as a whole are, in substance made. For this purpose, a set of guiding principles (to be followed in determination of POEM) have been issued by the Board in Circular No. 6/2017, dated January 24, 2017. These guiding principles are briefly explained in para 27.1. 3. Provisions of section 6(10)(a)(ii) shall not apply to a foreign company having turnover or gross receipts of Rs. 50 crore or less in a financial year – Circular No. 8/2017, dated February 23, 2017. In other words, a foreign company (whose annual turnover/gross receipts is Rs. 50 crore or less) cannot be resident in India.

27.1 Place of effective management (POEM) as per Circular No. 6/2017 - “Place of effective management” (POEM) is an internationally recognised test for the determination of the residence of a company incorporated in a foreign jurisdiction. Any determination of the POEM will depend upon the facts and circumstances of a given case. The POEM concept is one of substance over form. An entity may have more than one place of management, but it can have only one place of effective management at any point of time. Since “residence” is to be determined for each year, POEM will also be required to be determined on year to year basis. The process of determination of POEM would be primarily based on the fact as to whether or not the company is engaged in active business outside India. 27.1-1 COMPANY ENGAGED IN ACTIVE BUSINESS OUTSIDE INDIA - The place of effective management in case of a company engaged in active business outside India shall be presumed to be outside India if the majority meetings of the Board of Directors of the company are held outside India. Active business outside India - A company shall be said to be engaged in “active business outside India” if – a. the passive income is not more than 50 per cent of its total income; b. less than 50 per cent of its total assets are situated in India; c. less than 50 per cent of total number of employees are situated in India or are resident in India; and d. the payroll expenses incurred on such employees is less than 50 per cent of its total payroll expenditure. Passive income - “Passive income” of a company shall be aggregate of, — a. income from the transactions where both the purchase and sale of goods is from/to its associated enterprises; and

DIRECT TAXES LAW & PRACTICE | PROFESSIONAL EDITION AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :

Kapil Singhania, Vinod K. Singhania Taxmann August 2026 74th Edition 9788167010827 1896 Hardbound

Rs. 4,995 DESCRIPTION Direct Taxes Law & Practice (Professional Edition) is the flagship treatise on Indian direct taxation by Dr Vinod K. Singhania and Dr Kapil Singhania, first published in August 1981 and now in its 74th Edition. This is the most significant revision in its four-decade history: the entire text has been reconstructed around the Income-tax Act 2025, which supersedes the Income-tax Act 1961 with effect from 1st April 2026, read with the Income-tax Rules 2026. The law stated is as amended by the Finance Act 2026 and the Taxation & Other Laws (Amendment) Act 2026, and is updated up to 10th August 2026. The commentary incorporates the Central Board of Direct Taxes' Office Memorandum dated 6th July 2026 and sets out the Foreign Assets of Small Taxpayers Disclosure Scheme 2026 in full working detail. As the authors observe, the Income-tax Act 2025 is 'vast, intricate, and ever-evolving', the challenge lying 'not merely in mastering its statutory provisions, but in applying them to real-world scenarios with clarity, precision, and confidence'. The work has accordingly been rewritten rather than renumbered. Wherever a provision of the 2025 Act has an antecedent in the 1961 Act, that antecedent is carried in brackets alongside—in headings, tables, footnotes and the computation lines of the case studies themselves—so that a practitioner reasoning in terms of sections 10, 32, 45, 80C or 139 may locate the corresponding proposition without interruption. This Edition is designed to serve as the single work to which a practitioner turns when a question must be answered correctly, promptly and with authority. It is intended for the following readership: • Practising Chartered Accountants, Company Secretaries and Cost Accountants • Advocates, Tax Counsel and Litigators • In-House Tax Teams, CFOs, Finance Controllers and Corporate Tax Managers • Transfer Pricing and International Tax Specialists • Advisors to Non-Profit Organisations and Trusts, Co-operative Societies, Firms and LLPs • Departmental Officers and Revenue-Side Professionals • Academics, Researchers and Advanced Students of the CA Final, CS Professional, CMA Final, LLB/LLM, M.Com • Those Managing the 1961-to-2025 Transition The Present Publication is the 74th Edition for Tax Year 2026-27 and Assessment Year 2026-27. It is authored by Dr Vinod K. Singhania & Dr Kapil Singhania, with the following noteworthy features: • [Comprehensively Rewritten] In line with the Income-tax Act 2025 and the Income-tax Rules 2026; chapters have been restructured rather than renumbered • [Section-wise Cross-Referencer of Old & New Provisions] Mapping every provision of the 1961 Act to its 2025 Act counterpart and to the paragraph discussing it. It operates in both directions and cites paragraphs rather than pages • [Amendments at a Glance] More than 50 pages and 85 items in three parts—the Finance Act 2026, the Income-tax Act 2025 and the Income-tax Rules 2026, the last in before-and-after tabular form • [Route-Map Tables] At the head of the more substantial chapters, listing every topic against its section, its antecedent section and its paragraph number • [Theoretical Discussion Supplemented by 600+ Case Studies] More than 450 carry a citable identifier, and 445 are worked through to a labelled solution with a full computation table • [Lucid & To-the-Point Explanations] Painstakingly arranged in numbered paragraphs and sub-paragraphs, with debatable issues deliberated through to their logical conclusion • [Tax Planning Hints] Provided wherever the occasion arises; six chapters close on a planning paragraph and a full chapter is devoted to the subject • [Gist of Relevant Circulars, Clarifications & Notifications issued by CBDT] January 2018 to February 2026: a 225-page digest arranged provision by provision • [Gist of Landmark Rulings of Supreme Court/High Courts] 2018 to February 2026: a 159-page digest under more than 200 section headings, recording the status of Special Leave Petitions. The work carries upwards of 6,000 reported citations • [Frequently Asked Questions] Upon the computation of salary income and of annual value, addressing objections a careful reader might raise regarding the method adopted here • [Ready Reckoners] A Tax Rates annexure opening with a sixteen-step computation format, together with a complete Rates of Depreciation annexure

Buy Now