Clubbing of Incomes

1. Transfer of Income but no Transfer of Assets (Sec 60)

2. Revocable Transfer of Asset (Sec 61)
3. Income of spouse to be included in the Income of an Individual
(Sec 64)
4. Income from Asset transferred to Daughter-in-law (Sec 64)(1)
{vi}
5. Transfer of Asset to any person or association of persons for
the benefit of Spouse (Sec 64)(1){vii}
6. Transfer of Asset to any person or association of persons for
the benefit of Daughter-in-law (Sec 64)(1){viii}
7. Income of Minor Child (Sec 64)(1A)
8. Income from Converted Assets/Property (Sec 64)(2)
9. Benami Transactions
10.Cross Transfers
 Other Deemed Incomes
• Cash Credit (Sec 68)
• Unexplained Investments (Sec 69)
• Unexplained Money (Sec 69 A)
• Investments, Money etc not fully disclosed in
books of accounts (Sec 69 B)
• Unexplained Expenditure (Sec 69 C)
• Amount Borrowed or repaid on Hundi (Sec 69 D)
Set off and Carry forward of losses
Head of Losses Set off in the same Set off losses in
Previous Year coming Future Years
Losses from House First of all loss of Losses of
property one house property Assessment Yr.
can be setoff from 2009-10 or
same head of any thereafter can be
other HP Income in carried forwarded
the same year and up to next 8
balance loss can be Assessment Years
set off from any and can be set off
other heads of from Income of
Income House Property
Head only
Set off and Carry forward of losses
Head of Losses Set off in the same Set off losses in
Previous Year coming Future Years
Losses from General First of all loss of Losses of
Business (Non one Business can be Assessment Yr.
speculative) setoff from any 2009-10 or
other Business thereafter can be
Income in the same carried forwarded
year and the up to next 8
balance loss can be Assessment Years
set off from any and can be set off
other heads of but from Income of
Income except Business or
Salaries Profession Head
only
Set off and Carry forward of losses
Head of Losses Set off in the same Set off losses in
Previous Year coming Future Years
Losses from Losses of one Losses of
Speculative Business Speculative Business Assessment Yr. 2009-
can be setoff from 10 or thereafter can
Income of any other be carried forwarded
Speculative Business up to next 8
Income only Assessment Years
and can be set off
from Income of
Speculative Business
only
Set off and Carry forward of losses
Head of Losses Set off in the same Set off losses in
Previous Year coming Future Years
Losses from Capital Short term capital Losses of
Gain Head Losses can be setoff Assessment Yr. 2009-
from short term or 10 or thereafter can
long term capital be carried forwarded
gain only but long up to next 8
term capital losses Assessment Years
can be setoff from and can be set off
Long term Capital from Short term or
gain only Long term Capital
Losses only
Set off and Carry forward of losses
Head of Losses Set off in the same Set off losses in
Previous Year coming Future Years
Losses from activity Losses from such Losses of
of owning and heads can be setoff Assessment Yr. 2009-
maintaining Race from Incomes of 10 or thereafter can
Horses owning and be carried forwarded
maintaining Race up to next 4
Horses Assessment Years
head only and can be set off
from Incomes of
owning and
maintaining Race
Horses
head only
Set off and Carry forward of losses
Head of Losses Set off in the same Set off losses in
Previous Year coming Future Years
Losses from Lottery, Losses from such Losses of these
Horse Race, Playing heads cannot be types cannot be
cards etc setoff from any carried forwarded in
heads of Incomes. coming Assessment
Years to get set off .
 Deductions from Gross Total Income –
80HHB, 80HHC, 80HHE, 80HHF, 80IB
• Deductions in respect of Profits & Gains from
Projects outside India – Sec 80 HHB
Eligibility :- Any Indian Company or a resident Indian who is a non-company assesse
who earns any profit from a construction project outside India in which assesse
should have signed an agreement with any one of the following:-
(a) Foreign Govt. or (b) Statutory or Public Authority or (c) Any Foreign
establishment or (d) Any agency in Foreign state/country
Rate of Deduction : 20% of earned profits by the assesse
Conditions of Deductions : Revenue from such foreign projects should be earned
in convertible foreign exchange. Its accounts should be maintained separately.
20% of such profits should be brought in India within 6 months after the
completion of financial Yr. The assesse should use this amount within 5 Yrs for
the objectives & benefits of the business but cannot distribute dividends.
• Deductions in respect of Profits retained for
Export Business – Sec 80 HHC
Eligibility :- Any Indian Company or a resident Indian who is a non-company
assesse who export goods or merchandise in the previous yr as an
exporter.
Under exporter following types of assesse will be included :-
(a) Direct manufacturer (b) Supporting Manufacturer (c) Exporter or
Merchandiser
Rate of Deduction : 50% of earned profits so received from export
transaction made by an assesse during last previous Yr.
Conditions of Deductions : Sales Revenue from Goods or merchandise
made outside India be received that to in convertible foreign exchange.
Sales Revenue should be brought in India within 6 months after the
completion of financial Yr.
• Deductions in respect of earnings in
Convertible Foreign Exchange of Hotel
Business or Travel agency etc – Sec 80 HHD
Eligibility :- Any Indian Company or a resident Indian who is a non-company
assesse who is having a Approved Hotel Business or Tour operator
Business or Travel Agent
Rate of Deduction : 25% of such Income for the services given to foreign
touristers or amount deposited in reserve account whichever is less
Conditions of Deductions : Assesse provides services to Foreign
touristers in India. Consideration of such services should be received or
brought in India within 6 Months of such services that to in foreign
convertible exchange. And the assesse should also submit a certificate
of Proof (prescribed format) along with his statement of Income by
approved auditor that he/she is indulged in this type of business and
income has been received in foreign convertible exchange.
• Deductions in respect of Profits from exporter
of Computer Software – Sec 80 HHE
Eligibility :- Any Indian Company or a resident Indian who is a non-company
assesse who is exporting software outside India, any technical services
given outside India for production or manufacturing software's. And also
to Supporting software developer (who sells his/her part of development
works to a Exporting company) who complies all the norms prescribed
terms & Conditions introduced in assessment Yr 1999-2000
Rate of Deduction : 50% of such Profits earned from export or transmission
of Computer Software.
Conditions of Deductions Assesse should bring the Consideration in
India within 6 Months after the completion of previous year which
should be in foreign convertible exchange. And also the assesse should
submit a certificate of Proof (prescribed format) along with his/her
statement of Income by approved auditor (CA) that the deduction asked
under this section is genuine and valid.
• Deductions in respect of Profits from exporter
or transfer of Film Software – Sec 80 HHF
Eligibility :- Any Indian Company or a resident Indian who is a non-company
assesse who is exporting Film Software, Television Software, Music
Software etc outside India.
Rate of Deduction : 50% of such Profits earned from export or
transmission of Computer Software.
Conditions of Deductions Assesse should bring the Consideration in
India within 6 Months after the completion of previous year which
should be in foreign convertible exchange. And also the assesse should
submit a certificate of Proof (prescribed format) along with his/her
statement of Income by approved auditor (CA) that the deduction asked
under this section is genuine and valid.
Validity Period : Till 12 years of such business from the date of
commencement of export business
• Deductions in respect of Profits and gains from industrial
Undertakings, Ship or Hotel etc other than infrastructure
development Undertakings – Sec 80 IB
Eligibility :- This deduction will be allowed to such types of assesses in following kinds of Business Incomes are
included in their Gross Total Income :-
1. An industrial Undertaking (including cold storage)
2. Ship Business
3. Hotel Business
4. Multiplex Theatres
5. Convention Centers
6. Scientific and Industrial Research Centers
7. Oil Refineries and other Commercial Production
8. Construction & development of Housing Project
9. Storage , Maintaining and Transportation of Food & Beverages

Important Conditions of Deductions Assesse who have established such undertakings which is indulged in the
productions of goods which given in the 11th schedule of Income tax act. Such establishment s should not be
reorganized from any old business establishment.

Rate of Deduction :

Validity Period :