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(vii) Every artificial juridical person, not falling within any of the
preceding sub-clauses: A public corporation established under special Act
of legislature and a body having juristic personality of its own is known to be
Artificial Juridical Persons. Eg Universities, Reserve Bank of India.
Determine under which category of Person they fall into:
1. Dr.Muniraju , a lecturer in the Bangalore University
2. IBS Hyderabad University
3. Sri. Ganesh, Director in BHEL
4. SAIL
5. Mr. Ramesh, a sole proprietor of a Kirana Shop
6. GHMC
7. Mokila Gram Panchayat
8. Reliance Industries Ltd
9. Life Insurance Corporation of India
10.Co-operative society
11.Laxman & Sons
12.A joint family of Sri Lakshmaiah, his wife and two sons
13.Axis Bank Ltd
14.Ram and Laxman, who are the legal heirs of Dasarath
1. Muniraju – Individual
2. IBS Hyderabad University – Artificial Juridical person
3. Sri Ganesh, Director – Individual
4. SAIL – Company
5. Mr. Ramesh, a sole proprietor of a Kirana Shop – Individual
6. GHMC – Local authority
7. Mokila Gram Panchayat - Local authority
8. Reliance Industries Ltd – Company
9. Life Insurance Corporation of India – Company
10.Co-operative society – Association of persons
11.Laxman & Sons Chartered Accountants firm – Partnership firm
12.A joint family of Sri Lakshmaiah, his wife and two sons – (HUF)
13.Axis Bank Ltd – Company
14.Ram and Laxman, who are the legal heirs of Dasarath carrying on handloom
business - HUF
Income: The Act does not define the term “Income”. It just specifies
certain things that can be included under the concept of Income.
Profits and Gains
Dividend
Voluntary contribution to any trust created wholly or partly for
charitable purposes
Value of any benefit or perquisites either in cash or kind
Profit in lieu of salary
Any allowances given to assessee
Any special allowance or benefits
Any sum paid as obligation by the company
Any Capital gains chargeable u/s 45
Any winnings from lotteries, crossword puzzles, races, card games and
other games of any sort
Sum received by the employee as contribution to any provident fund or
superannuation fund or any fund set-up under the ESI Act.
Any sum received under key main insurance policy.
Features of Income
Income must be from a definite source
Legal as well as illegal income is taxed
It can be in the form of money as well as in kind
Income earned may be temporary or permanent
Pin money received by housewife is not considered as an
income
Any amount received due to devaluation of currency is
taxable income
Any loss is also included under the concept of income
In case of dispute regarding title of income, the beneficiary
is taxed
Income may be lump sum or in installment
Revaluation of assets and excesses if any cannot be
considered as income.
GROSS TOTAL INCOME
Income from Salary xxx
Income from House property xxx
Income from Business or Profession xxx
Income from Capital gains xxx
Income from Other sources xxx
_____________
GROSS TOTAL INCOME xxx
_____________
Less: Deduction u/s 80 xxx
____________
TOTAL/NET INCOME xxx
_____________
Salary: Existence of employer-employee; salary must be
real and non-fictitious.
Includes wages, annuity, pension, gratuity, fees, commission,
perks, profits, advance on salary & annual accretion.
Income from House property:
Property not used by the owner for purpose of his business or
profession, the profits of which are chargeable to tax.
Profits or gains from Business or Profession: Any trade,
commerce or manufacture.
Capital Gains
Income from Other Sources:
Dividends
Winnings from lotteries
Interest on securities
Income from machinery, plant or furniture on hire
Sum received under a keyman insurance policy, bonus
AGRICULTURAL INCOME: It is fully exempted from tax
u/s 10(1)
Any rent or revenue derived from land which is
situated in India and is used for agricultural purposes
Any income derived from such land used for
agricultural operations. It includes the performance by
a cultivator or receiver of rent-in-kind of any process
ordinarily employed by a cultivator or receiver of rent-
in-kind to render the produce raised or received by
him fit to be taken to market.
Any income from a farm house
Any income derived from saplings or seedlings grown
in a nursery.
Residential Status of Individual
Resident- Who satisfies one of the basic condition
Ordinary Resident- Who satisfies any one of the basic
condition and both the additional conditions
Not ordinary resident- Who satisfies any one of the basic
conditions but does not satisfy one or none of the
additional conditions
Non-resident- Who does not satisfy basic condition
itself
BASIC CONDITIONS ADDITIONAL
CONDITIONS
1. A stay of 182 days or more 1. He should be resident in
during the current previous India at least 2 out of 10
year years immediately preceding
the current previous year
1. A stay of 60 days or more in 1. A stay of 730 days or more
the current previous year and during the 7 years
a total stay of 365 days or immediately preceding the
more in the 4 years current previous year
immediately preceding the
current previous year
EXCEPTION
The period of 60 days or more in (b) (i) is extended to
182 days or more in the case of:
i. An Indian citizen, leaving overseas for employment
or as a crew of an Indian ship
ii. An Indian citizen or person of Indian origin, outside
India, visiting India during the previous year.
SCOPE OF TOTAL INCOME ON THE BASIS OF RESIDENTIAL
STATUS:
ROR RNOR NR