Income Tax Interlinked

CHAPTER I

PRELIMINARY

Section No. Page No.

1. Short title, extent and commencement

2. Definitions

3. Definition of “tax year”

CHAPTER II

BASIS OF CHARGE

4. Charge of income-tax

5. Scope of total income

6. Residence in India

7. Income deemed to be received and dividend deemed to be income in a tax year

8. Income on receipt of capital asset or stock-in-trade by specified person from specified entity

9. Income deemed to accrue or arise in India

10. Apportionment of income between spouses governed by Portuguese Civil Code

CHAPTER III

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

A.—Incomes not to be included in total income

11. Incomes not included in total income

B.—Incomes not to be included in total income of political parties and electoral trusts

12. Incomes not included in total income of political parties and electoral trusts

CHAPTER IV

COMPUTATION OF TOTAL INCOME

A.—Heads of income

13. Heads of income

14. Income not forming part of total income and expenditure in relation to such income

B.—Salaries

15. Salaries

16. Income from salary

17. Perquisite

18. Profits in lieu of salary

Section No.

19. Deductions from salaries

C.—Income from house property

20. Income from house property

21. Determination of annual value

22. Deductions from income from house property

23. Arrears of rent and unrealised rent received subsequently

24. Property owned by co-owners

25. Interpretation

D.—Profits and gains of business or profession

26. Income under head “Profits and gains of business or profession”

27. Manner of computing profits and gains of business or profession

28. Rent, rates, taxes, repairs and insurance

29. Deductions related to employee welfare

30. Deduction on certain premium

31. Deduction for bad debt and provision for bad and doubtful debt

32. Other deductions

33. Deduction for depreciation

34. General conditions for allowable deductions

35. Amounts not deductible in certain circumstances

36. Expenses or payments not deductible in certain circumstances

37. Certain deductions allowed on actual payment basis only

38. Certain sums deemed as profits and gains of business or profession

39. Computation of actual cost

40. Special provision for computation of cost of acquisition of certain assets

41. Written down value of depreciable asset

42. Capitalising impact of foreign exchange fluctuation

43. Taxation of foreign exchange fluctuation

44. Amortisation of certain preliminary expenses

45. Expenditure on scientific research

46. Capital expenditure of specified business

47. Expenditure on agricultural extension project and skill development project

48. Tea development account, coffee development account and rubber development account

49. Site Restoration Fund

50. Special provision in case of trade, profession or similar association

51. Amortisation of expenditure for prospecting certain minerals

52. Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc.

53. Full value of consideration for transfer of assets other than capital assets in certain cases

54. Business of prospecting for mineral oils

55. Insurance business

56. Special provision in case of interest income of specified financial institutions

57. Revenue recognition for construction and service contracts

58. Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents

Section No.

59. Computation of royalty and fee for technical services in hands of non-residents

60. Deduction of head office expenditure in case of non-residents

61. Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents.

62. Maintenance of books of account

63. Tax audit

64. Special provision for computing deductions in case of business reorganisation of co-operative banks

65. Interpretation for purposes of section 64

66 Interpretation

E.—Capital gains

67. Capital gains

68. Capital gains on distribution of assets by companies in liquidation

69. Capital gains on purchase by company of its own shares or other specified securities

70. Transactions not regarded as transfer

71. Withdrawal of exemption in certain cases

72. Mode of computation of capital gains

73. Cost with reference to certain modes of acquisition

74. Special provision for computation of capital gains in case of depreciable assets

75. Special provision for cost of acquisition in case of depreciable asset

76. Special provision for computation of capital gains in case of Market Linked Debenture

77. Special provision for computation of capital gains in case of slump sale

78. Special provision for full value of consideration in certain cases

79. Special provision for full value of consideration for transfer of share other than quoted share

80. Fair market value deemed to be full value of consideration in certain case

81. Advance money received

82. Profit on sale of property used for residence

83. Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases

84. Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases

85. Capital gains not to be charged on investment in certain bonds

86. Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house

87. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area

88. Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone

89. Extension of time for acquiring new asset or depositing or investing amount of capital gains

90. Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”

91. Reference to Valuation Officer

F.—Income from other sources

Section No.

92. Income from other sources

93. Deductions

94. Amounts not deductible

95. Profits chargeable to tax

CHAPTER V

INCOME OF OTHER PERSONS INCLUDED

IN TOTAL INCOME OF ASSESSEE

96. Transfer of income without transfer of assets

97. Chargeability of income in transfer of assets

98. “Transfer” and “revocable transfer” defined

99. Income of individual to include income of spouse, minor child, etc.

100. Liability of person in respect of income included in income of another person

CHAPTER VI

AGGREGATION OF INCOME

101. Total income

102. Unexplained credits

103. Unexplained investment

104. Unexplained asset

105. Unexplained expenditure

106. Amount borrowed or repaid through negotiable instrument, hundi, etc.

107. Charge of tax

CHAPTER VII

SET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES

108. Set off of losses under same head of income

109. Set off of losses under any other head of income

110. Carry forward and set off of loss from house property

111. Carry forward and set off of loss from Capital gains

112. Carry forward and set off of business loss

113. Set off and carry forward of losses computed in respect of speculation business

114. Set off and carry forward of losses computed in respect of specified business

115. Set off and carry forward of losses from specified activity

116. Treatment of accumulated losses and unabsorbed depreciation in amalgamation or demerger, etc.

117. Treatment of accumulated losses and unabsorbed depreciation in scheme of amalgamation in certain cases

118. Carry forward and set off of losses and unabsorbed depreciation in business reorganisation of co-operative banks

119. Carry forward and set off of losses not permissible in certain cases

120. No set off of losses against undisclosed income consequent to search, requisition and survey

121. Submission of return for losses

CHAPTER VIII

DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME

A.—General

122. Deductions to be made in computing total income

B.—Deductions in respect of certain payments

Section No.

123. Deduction for life insurance premia, deferred annuity, contributions to provident fund, etc.

124. Deduction in respect of employer and assessee contribution to pension scheme of Central Government

125. Deduction in respect of contribution to Agnipath Scheme

126. Deduction in respect of health insurance premia

127. Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability

128. Deduction in respect of medical treatment, etc.

129. Deduction in respect of interest on loan taken for higher education

130. Deduction in respect of interest on loan taken for residential house property

131. Deduction in respect of interest on loan taken for certain house property

132. Deduction in respect of purchase of electric vehicle

133. Deduction in respect of donations to certain funds, charitable institutions, etc.

134. Deductions in respect of rents paid

135. Deduction in respect of certain donations for scientific research or rural development

136. Deduction in respect of contributions given by companies to political parties

137. Deduction in respect of contributions given by any person to political parties

C.—Deductions in respect of certain incomes

138. Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.

139. Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone

140. Special provision in respect of specified business

141. Deduction in respect of profits and gains from certain industrial undertakings

142. Deductions in respect of profits and gains from housing projects

143. Special provisions in respect of certain undertakings in North-Eastern States

144. Special provisions in respect of newly established Units in Special Economic Zones

145. Deduction for businesses engaged in collecting and processing of bio-degradable waste

146. Deduction in respect of additional employee cost

147. Deductions for income of Offshore Banking Units and Units of International Financial Services Centre

148. Deduction in respect of certain inter-corporate dividends

149. Deduction in respect of income of co-operative societies

150. Deduction in respect of income of federal co-operative

151. Deduction in respect of royalty income, etc., of authors of certain books other than text-books

152. Deduction in respect of royalty on patents

D.—Deductions in respect of other incomes

Section No.

153. Deduction for interest on deposits

E.—Other deductions

154. Deduction in case of a person with disability

CHAPTER IX

REBATES AND RELIEFS

A.—Rebates and reliefs

155. Rebate to be allowed in computing income-tax

156. Rebate of income-tax in case of certain individuals

157. Relief when salary, etc., is paid in arrears or in advance

158. Relief from taxation in income from retirement benefit account maintained in a notified country

B.—Double taxation relief

159. Agreement with foreign countries or specified territories and adoption by Central Government of agreement between specified associations for double taxation relief

160. Countries with which no agreement exists

CHAPTER X

SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX

161. Computation of income from international transaction and specified domestic transaction having regard to arm’s length price

162. Meaning of associated enterprise

163. Meaning of international transaction

164. Meaning of specified domestic transaction

165. Determination of arm’s length price

166. Reference to Transfer Pricing Officer

167. Power of Board to make safe harbour rules

168. Advance pricing agreement

169. Effect to advance pricing agreement

170. Secondary adjustment in certain cases

171. Maintenance, keeping and furnishing of information and document by certain persons

172. Report from an accountant to be furnished by persons entering into international transaction or specified domestic transaction

173. Definitions of certain terms relevant to determination of arm’s length price, etc.

174. Avoidance of income-tax by transactions resulting in transfer of income to non-residents

175. Avoidance of tax by certain transactions in securities

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

177. Limitation on interest deduction in certain cases

CHAPTER XI

GENERAL ANTI-AVOIDANCE RULE

178. Applicability of General Anti-Avoidance Rule

179. Impermissible avoidance arrangement

180. Arrangement to lack commercial substance

181. Consequences of impermissible avoidance arrangement

182. Treatment of connected person and accommodating party

Section No.

183. Application of this Chapter

184. Interpretation

CHAPTER XII

MODE OF PAYMENT IN CERTAIN CASES, ETC.

185. Mode of taking or accepting certain loans, deposits and specified sum

186. Mode of undertaking transactions

187. Acceptance of payment through prescribed electronic modes

188. Mode of repayment of certain loans or deposits or specified advances

189. Interpretation

CHAPTER XIII

DETERMINATION OF TAX IN SPECIAL CASES

A.—Determination of tax in certain special cases

190. Determination of tax where total income includes income on which no tax is payable

191. Tax on accumulated balance of recognised provident fund

192. Tax in case of block assessment of search cases

193. Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer

194. Tax on certain incomes

195. Tax on income referred to in sections 102 to 106

B.—Special provisions relating to tax on capital gains

196. Tax on short-term capital gains in certain cases

197. Tax on long-term capital gains

198. Tax on long- term capital gains in certain cases.

C.—New tax regime

199. Tax on income of certain manufacturing domestic companies

200. Tax on income of certain domestic companies

201. Tax on income of new manufacturing domestic companies

202. New tax regime for individuals, Hindu undivided family and others

203. Tax on income of certain resident co-operative societies

204. Tax on income of certain new manufacturing co-operative societies

205. Conditions for tax on income of certain companies and co-operative societies

D.—Special provisions relating to minimum alternate tax and alternate minimum

206. Special provision for minimum alternate tax and alternate minimum tax

E.—Special provisions relating to non-residents and foreign companies

207. Tax on dividends, royalty and fees for technical service in case of foreign companies

208. Tax on income from units purchased in foreign currency or capital gains arising from their transfer

209. Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer

210. Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer

211. Tax on non-resident sportsmen or sports associations

212. Interpretation

213. Special provision for computation of total income of non-residents

214. Tax on investment income and long-term capital gains

Section No.

215. Capital gains on transfer of foreign exchange assets not to be charged in certain cases

216. Return of income not to be furnished in certain cases

217. Application of benefits under sections 212 to 216

218. Tax on business income of Offshore Banking Units or International Financial Services Centre unit

219. Conversion of an Indian branch of foreign company into subsidiary Indian company

220. Foreign company said to be resident in India

F.—Special provisions relating to pass-through entities

221. Tax on income from securitisation trusts

222. Tax on income in case of venture capital undertakings

223. Tax on income of unit holder and business trust

224. Tax on income of investment fund and its unit holders

G.—Special provisions relating to income of shipping companies

225. Income from business of operating qualifying ships

226. Tonnage tax scheme

227. Computation of tonnage income

228. Relevant shipping income and exclusion from book profit

229. Depreciation and gains relating to tonnage tax assets

230. Exclusion of deduction, loss, set off, etc.

231. Method of opting of tonnage tax scheme and validity

232. Certain conditions for applicability of tonnage tax scheme

233. Amalgamation and demerger

234. Avoidance of tax and exclusion from tonnage tax scheme

235. Interpretation