How to Handle Income Tax Problems Narayan Jain Dilip Loyalka
How to Handle Income Tax Problems Narayan Jain Dilip Loyalka
Containing FAQ & practical problems and its solutions in easy to follow language with guidelines on art of handling tax matters and ideas for tax planning under various heads of income together with Tax rates, Depreciation rates, Cost Inflation Index, Rates of Gold and Silver. Also incorporating Salient features of Prohibitions of Benami Transactions Act, 1988 after Amendment in 2016; amended provisions relating to Restrictions on Cash Transaction in section 40A(3)/(3A), expenditure u/s 35AD, payment for purchase of assets u/s 43, Restrictions on cash receipt of Rs. 2 Lakh or more u/s 269 ST, exempted income, amended provisions of sec. 44AA, 44AB, presumptive income u/s 44 AD and 44ADA, new provisions of sec. 45(5A) for taxing capital gains in case of development agreement, amendment in capital gains provisions u/s 47, 48, 49, 50CA, 54EC, new base year for cost inflation index u/s 55, amended provisions of income from other source u/s 56, Loss under the head Income from House Property, carry forward and set off of losses; Donations u/s 80G, Transfer Pricing, special rate of tax u/s 115BBG, MAT, Survey, Search &Seizure; Quoting of Aadhar No. u/s 139AA, assessment and time limits, TDS and TCS; Fee for late filing of returns u/s 234F, withholding of refund u/s 241A, Settlement, Authority for advance Ruling, Penalties, and other amendments made by the Finance Act , 2017. Also referring to decisions of various Court and ITAT and recent Circulars & Notifications issued by CBDT
Highlights of the Finance Act, 2017
Part I : Tax FAQs & Solutions
1. How to start a new I. T. File ?
2. What are the important definitions under the IT Act ? (section 2)
3. What is ‘previous year’ and the ‘basis of charge’ ? (sections 3 to 5)
4. What is the effect of residential status and business connection on tax incidence ?(sections 6 to 9 )
5. Which receipts/incomes are not taxable u/s 10 ?
6. How income tax is computed in case of agricultural income ? section 10(1)
7. What benefit is available u/s 10A to newly established undertakings in FTZ, EHTP, STPs etc.?
7A. What benefits are available u/s 10AA to units established unit in SEZ ?
8. What benefit is available u/s 10B to newly established 100% Export Oriented Undertakings (EOUs)?
9. What benefit is available u/s 10BA to an undertaking engaged in export of handmade articles or things etc. ?
10. What tax benefits are available to educational institutions ? sections 10(23C)(iiiab), 10(23C)(iiiad), sec.11 to 13
11. What tax benefits are available to hospitals and medical institutions ? sections 10(23C)(iiiac), 10(23C)(iiiae), 11 to 13
12. What are the income tax provisions relating to charitable trusts etc. ? sections 11
13. What are the provisions for exemption of income of political parties and Electoral Trusts? sections 13A& 13B
13A. What are the provisions of section 14A and its implications? section 14A
14. How to minimise tax on income from Salary? sections 15 to 17
15. What are the new rules for Valuation of Perquisites? section 17
16. How to avail tax benefits while computing income from house property ? sections 22 to 27
17. What are the tax benefits of corporatisation or reorganisation of business ? sections 47, 72A, 72AA etc
18. Which Income is chargeable to tax under the Head Profits & Gains of business or profession? sections 28 and 29
19. What are the provisions relating to depreciation ? section 32
20. Which expenses are allowable while computing profit and gains from business / profession ? sections 30 to 44A, except section 32
21. Which expenses or payments of statutory liabilities are allowable on the basis of actual payment ? section 43B
21A. Whether date of presentation of cheque will be considered as date of payment ? sections 43B, 140A, 210, 211, 220
22. What is the presumptive Income scheme for small businessmen, transport operators, business of exploration of mineral oil etc.? sections 44AD, 44AE 44B,44BB,44BBB
23. Compulsory maintenance of books of account-for whom and for how many years ?section 44AA
24. Compulsory tax audit of accounts – in which cases ? section 44AB
25. How to minimise tax on capital gains ? sections 45 to 55A
26. What are the IT. implications in case an immovable property is to be transferred ? section 50C
27. What incomes are to be considered under the head income from other sources ? sections 56 to 59
27A. What are the deeming provisions of sec. 56(2) and treatment of certain property received as gift or at inadequate consideration? sections 56(2)
28. What are the provisions for clubbing of income ? sections 60 to 65
29. Under what circumstances A.O. may consider loan or cash credit as income u/s 68 ?
30. Under what circumstances the A.O. may make addition in respect of unexplained investments u/s 69 ?
31. Under what circumstances the A.O. may make addition in respect of unexplained money etc. u/s 69A ?
32. Under what circumstances the A.O. may make addition in respect investments etc. not fully disclosed in books of account u/s 69B ?
33. Under what circumstances the A.O. may make addition in respect of unexplained expenditure etc. u/s 69C ?
34. Under what circumstances the A.O. may make addition in respect of amount borrowed or repaid on Hundi u/s 69D ?
35. What is the system for set off & carry forward of losses ?sections 70 to 79
36. What deductions are available under chapter VI-A ?sections 80A to SOU
37. What deduction is available u/s 80C ?
37A. What benefits are available on export profits u/s 80 HHC ?section 80HHC
38. Who are eligible to get deduction u/s 80-IA ?
38A. What deduction is available u/s 80-IAB to developers of Special Economic Zone?
39. Who are eligible to get deduction u/s 80-IB ?
39A. What Deduction is available to undertakings if special category States?section 80-IC
39B. What Deduction is available for business of hotels and convention centres in specified area u/s 80-ID? section 80-ID
39C. What Deduction is available for certain undertakings in North Eastern States & Sikkim? section 80-IE
40. How to take benefit of tax rebates u/s 87A, 88, 88B, 88C, 88D & 88E ? sections 87, 87A, 88, 88C, 88D, 88E
41. How to claim relief u/s 89 when salary etc. is received in arrear or in advance ?
42. How to get relief in case of double taxation ? sections 90 & 91
43. What are the provisions with regard to transfer pricing ?sections 92 to 92F
43A What will be tax treatment in case of dividend stripping or bonus stripping ?section 94
43B What are the provisions of General Anti -Avoidance Rules (GAAR) ? sections 95 to 102
43C Special Rate of Tax – on what incomes? sections 115A, 115AE 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE
44. What are the provisions of Minimum Alternate Tax (MAT) u/s 115JB ?
44A. What are the provisions of Alternate Minimum Tax (AMT) u/s 115JC of assessees other than companies?
44B. Dividend and Income Distribution Tax
44C. What are the taxation provisions of Business Trusts sec. 115UA
44D. What is the new presumptive tax scheme for shipping industry ?sections 115V to 115VZC
45. Who are the IT. authorities and what are their powers and functions ? sections 116 to 124
46. Do you wish to get your IT. file transferred to other place ? section 127
47. How to claim opportunity of fresh hearing in case of change of incumbent of an IT. Office ? section 129
48. Under what circumstances notice or summon can be issued for appearance u/s 131 ?
49. How to face an Income Tax Search? sections 132,132A, 132B
50. What are the powers of the A.O. to call for information u/s 133 ?
51. How to handle an IT. survey, enquiries relating to expenses on marriage or other functions and when information is sought for verification? sections 133A,133B& 133C
52. What are the provisions for disclosure of information respecting assessees u/s 134, 135, 136 and 138 ?
53. What Precautions should be taken while preparing various returns? Section 139
54. What are the features of Permanent account Number (PAN) and Quoting of Aadhaar Number Section 139A and 139AA
Volume – 2 (section 142A to 298 plus WT, STT)
55. What are the new provisions regarding estimation of cost by departmental valuer ?section 142A
56. Special tax audit of accounts – in which cases ? section 142(2A)
57. In what cases intimation u/s 143(1) is issued ? section 143(1)
57A. What is the Centralised Processing of Returns Scheme? section 143(1A)/143(1B)
58. How to handle a Scrutiny assessment ? sections 143(2) and 143(3)
59. In what circumstances best judgment assessment can be made u/s 144 ?
59A. What are salient features of Dispute Resolution Panel? section 144C
60. What method of accounting is required to be followed u/s 145 and 145A. ?
61. Re-opening of assessments u/s 147 and issue of notice u/s 148-under what circumstances ? sections 147 to 152
62. What is the time limit u/s 153 for completion of various assessments and re-assessments ?
63. What is the new procedure u/s 153A to 153C for assessment in search cases ?
64. In what circumstances rectification u/s 154 can be made ?
65. In what circumstances amendment can be made u/s 155 ?
66. What is the block assessment procedure in case of search etc. initiated before 1.6.2003 ? sections 158B to 158BI
67. What are the liabilities of representative assessees, private trust or executors of a deceased? sections 159 to 169
68. What is the procedure regarding assessment after partition of HUF? section 171
68A. What are the liabilities of Directors of private company in Liquidation ?section 179
69. What is the new procedure for assessment of partnership firms ? sections 184 to 189A
69A. What is the assessment procedure for Limited Liability Partnership?
70. What are the provisions in respect of T. D. S.? sections 192 to 206
71. What are the provisions in respect of Tax Collection at Source (T. C. S.)? sections 206C and 206CA
72. What are the provisions for deduction of tax at source in case of payment to non-residents? section 195
73. What precautions NRIs should take for tax planning and investment ?
74. What are the provisions for payment of advance tax ? sections 207 to 219
75. What should be done for stay of disputed tax demand ? sections 220 & 221
76. When interest is payable by the assessee and how it can be waived or reduced? sections 201(1 A), 234A, 234B, 234C, 234D etc.
77. How to get refund and interest thereon ? sections 237 to 245
78. Do you wish to go to Settlement Commission ? sections 245A to 245L
79. What is the procedure for filing Appeals and Application before AAR ? sections 246A to 262
80. Revision of orders prejudicial to revenue u/s 263 – under what circumstances ?
81. Revision of orders by CIT in favour of assessee u/s 264 -under what circumstances ?
82. What precautions are required in accepting and refunding of loans and deposits ? sections 269SS and 269T
83. What penalties are imposable and how the same can be avoided ? sections 271 to 275
84. How to take benefit of section 273A and section 273AA for waiver of penalties ?
85. What are Income tax offences and how the same can be compounded? sections 275A to 280
85A. Which transfers may be void u/s 281
85B In what circumstances A.O. may provisionally attach property of an assessee u/s 281B
85C. what are the provisions regarding Service of Notice and facility fo electronic comunication? section 282
85D What are the new provisions regarding submission of statement of Financial Transactions or Reportable Account and Statement by non-resident ?section 285 and 285BA
86. Who are entitled to represent before the IT. Authorities ? section 288
87. What are the salient features of Wealth tax Act ?
88. What are the new provisions of Securities Transaction Tax ?
89. Income Declaration Scheme, 2016 (IDS)
90. Direct Tax Dispute Resolution Scheme, 2016
91. What are the feature of Prohibition of Benami Property Transaction Act as amended in 2016?
Part II : Tax Rates, Appeal Fees, Court Fees, Stamp Duty, Depreciation Rates, Gold and Silver Rates and Other Important Information
Annex – A to K
Part III : Important CBDT Circulars, Notifications, Press Releases and Instructions etc.
Annex – L to T
About the Author
Prof. Narayan Jain, is a Master of Law and practising Advocate. He is a visiting faculty at NUJS, IIMC, ICAI, ICSI, ICWAI, ICFAI. He is the Secretary General of AIFTP and has served as President of Direct Taxes Professionals’ Association. He is the co-author of the books “How to Handle Income Tax Problems”, “Income Tax on Receipt of Certain Properties as Gift or at Inadequate Consideration” and “Ready Referencer of Business Expenditure”. His articles on taxation are published in various dailies and magazines. The Tax-payers’ education programmes have been his mission. He served as the Member of West Bengal Minorities Commission, Government of West Bengal.
Shri Dilip Loyalka F.C.A. is a young, talented and promising Chartered Accountant. He is one of the few persons in the country who has qualified as a Chartered Accountant even without eye-sight. He is also a Law graduate. He is also co-author of How to Handle Income Tax Problems. He has been awarded by H.E. the President of India as “Outstanding Handicapped Tax Professional”