INCOME TAX

FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

6.3 INCOME TAX

OBJECTIVE
The objective of this subject is to expose the students to the various provision of Income Tax Act relating to
computation of Income individual assesses only.
Unit 1: INTRODUCTION TO INCOME TAX 
Income Tax: Brief History - Legal Frame Work – Types of Taxes - Cannons of Taxation – Important
Definitions: Assessment – Assessment Year – Previous Year – Exceptions to the general rule of Previous
Year - Assessee – Person – Income - Casual Income – Gross Total Income – Total Income – Agricultural
Income
Residential Status: Determination of Residential Status of an individual (simple problems) - Incidence of
Tax (Simple Problems on Computation of Gross Total Income).
Exempted Incomes: Introduction – Exempted Incomes U/S 10 (Restricted to Individual Assessee) – Only
theory
Unit 2: INCOME FROM SALARY 
Meaning & Definition – Basis of Charge – Allowances – Fully Taxable Allowances – Partly Taxable
Allowances: House Rent Allowance, Entertainment Allowance, Transport Allowance, Children Education
& Hostel Allowances - Fully Exempted Allowances – Perquisites – Tax Free Perquisites – Perquisites
Taxable in all Cases: Rent free accommodation - Concessional accommodation, Personal obligations of the
employee met by the employer – Perquisites Taxable in Specified Cases : Gardener, Sweeper, Gas,
Electricity, Water and Motor car facility (when the motor car is owned or hired by the employer )–
Provident Funds – Deductions from Salary U/S 16 – Problems on Income from Salary(excluding retirement
benefits).
Unit 3: INCOME FROM HOUSE PROPERTY 
Basis of Charge – Exempted Incomes from House Property – Annual Value – Determination of Annual
Value – Loss due to Vacancy – Deductions from Annual Value – Problems on Income from House
Property(Excluding Pre-Construction interest)