Important Sections in Income Tax

SECTIONS DETAILS
6(1) Basic conditions to test as to when an individual is
resident in India.

6(6) Additional conditions to test when a resident individual

is ordinarily resident in India.

10(1) Agricultural income (exempt from tax, but is only taken

into consideration for the purpose of rate calculation).

10(2A) Share of profit in the firm (as a partner, as per the

partnership deed is exempted).

10(10A) Commuted pension, exempted fully or partly under

this section.

10(13A) House Rent Allowance, exempted up to a certain limit

under this section .

10(32) Clubbing of income.

10(34) Dividend on or after 1st April 2003 from domestic

company ,exempted under this section.

10(35) Income from units of UTI or Mutual Fund, exempt

under this section.

10(36) Long Term Capital Gain On BSE Equity Shares.(The

eligible equity shares for this purpose are the equity
shares are any equity shares in a company being a
constituent of BSE-500 Index of the Stock Exchange of
Mumbai on March 1,2003)

10(38) Long Term Capital Gain on transfer of Securities not

chargeable to tax in case covered by Securities
Transaction Tax(STT).

16(ii) Entertainment Allowance (first

included in salary income under the head “Salaries”
and thereafter a deduction is given on the basis of
government or non-government employees).
16(iii) Professional tax or tax on employment (allowed as
deduction from AY-90-91,SALARIES).

17 This section has been amended with a view to providing

a clarification as to what constitutes “concession in the
matter of rent”.

17(1) Meaning of salary.

17(1)(ii) Pension.

17(2) Perquisites.
24(a) Standard deduction for Income from House Property.

24(b) interest on borrowed capital is allowable as deduction

from income from H.P. under this section.

32 Depreciation (Profits and Gains from Business&

Profession-PGBP).

35 Deduction in respect of expenditure on scientific

research (PGBP).

35D Amortization of preliminary expenses (PGBP).

35DDB Any payment for V.R.S. it will be taken as capital

expenditure, it will be allowed in equal parts over 5
years.(PGBP)

36 Some deductions under this section:

Bad Debts; expenditure in respect of promoting family
planning among employees; banking cash transactions;
interest on borrowed capital; bonus or commission to
employees(payment basis); insurance premium on
stock, cattle or for health of the employees(payment
basis).(PGBP)

37(1) General Deductions (expenses allowed for deduction

satisfying certain conditions as mentioned in this
section)-(PGBP).

40A (2) Payments to relative is liable to be disallowed in

computing business profit to the extent to be excessive
or unreasonable having regard to fair market
value.(PGBP)
40A (3) Payment exceeding 20,000, made other than in crossed
cheque or a crossed bank D/D,100% of such
expenditure is disallowed.(PGBP)
RULE 6DD: exception to section 40A (3).

40A(7) Provision for payment of gratuity not applicable in

calculating business income.(PGBP)

40(b) To obtain deduction of remuneration paid to partners,

conditions given in section 40(b) should be satisfied.
(Income Tax Firms)

43B Specified deductions only to be allowed on actual

payment. (PGBP)

44AA Compulsory maintenance of Books of Accounts

applicable to some specific profession.(PGBP)

44AB Compulsory Audit of Accounts.(PGBP)

44AD Provides for a method of estimating income from the

business of civil construction or supply of labour for
civil construction work. (PGBP)

44AE Provides for a method of estimating income from the

business of hiring and plying of goods vehicles.(PGBP)

44AF Provides for a method of estimating income from the

business of retail trade. (PGBP)

54 Capital gains arising from the transfer of residential

house property.(CG)

54B Capital gains arising from the transfer of land used for
agricultural purpose.(CG)

54D Capital gains arising on compulsory acquisition of land

and building, forming a part of industrial
undertaking.(CG)

54F Capital gains on transfer of a long-term capital asset

other than a house property.(CG)

55A Reference to valuation officer (with a view to

ascertaining the fair market value of a capital asset , the
concerned Assessing officer may refer the valuation of
 the capital asset to the Valuation Officer appointed by
the Income-tax Department in cases mentioned in this
section).(CG)

64(1A) Income of any minor child will be taxable in the hands

of his/her working parent. If both father mother
working person, then such income will be clubbed in the
hands of the parent whose income is higher before
inclusion of such income of the child.(Clubbing of
Income)

80C Deduction in case of life insurance premium, deferred

annuity contribution to P.F., contribution to certain
equity shares and debentures, etc.

80CCC Deduction in respect of contribution to Pension Fund.

80CCD Deduction in respect of contribution to pension scheme

notified by Central Government.

80D Deduction in respect of medical insurance premium.

80DD Deduction in respect of maintenance including medical

treatment of a handicapped dependant who is a person
with disability.

80DDB Deduction in respect of medical treatment.

80E Deductions in respect of repayment of loan taken for

higher education.

80G Deductions in respect of donations to certain funds,

charitable institutions, etc.

80LA Deduction in respect of certain income of Offshore

Banking Units and International Financial Services
Centre.

80U Deduction in case of person with disability.

139(1) Time for filing return.

192 TDS(Tax Deducted at Source) on salaries.

193 TDS(Tax Deducted at Source) on interest on securities.

194 TDS(Tax Deducted at Source) on dividends.

194A TDS(Tax Deducted at Source) on interest other than

interest on securities.

194B TDS(Tax Deducted at Source) on winning from lotteries

and crossword puzzles.

194BB TDS(Tax Deducted at Source) on winning from horse

races.
194C TDS(Tax Deducted at Source) from payment to
contractors and sub-contractors.

271F Penalty for failure to furnish return of income under

proviso to section 139 before the end of relevant
assessment year.

272

Wealth Tax
SECTIONS DETAILS

2(ea) Assets.

4 Deemed assets.

5 Assets exempt from tax.

IMPORTANT FORMS
FORM DETAILS

16 In case of TDS on salary. Certificate to be obtained

from employer .

16A Certificate to be issued in this FORM in all cases of

deduction of tax at source except deduction at source in
case of salary.

24Q Return form number for deduction of tax at source in

case of Salary.
26Q Return form number for deduction of tax at source in
all cases except deduction at source in case of salary.

49A For application for PAN .

49B For application for TAN.

3CA Audit report in case where accounts of business or

profession audited under any other law.

3CB Audit report in case of person carrying on business or

profession in other cases.

3CD Statement of particulars required to be furnished u/s

44AB.

ITNS 280 For payment of tax/interests/penalties/TDS.

ITNS 281 For payment of TDS.

27A Physical Form.