The document provides an overview of key provisions under the Indian Income Tax Act. It discusses various heads of income like salary, house property, capital gains, and business income. It summarizes important points around deductions available for HRA, interest on housing loans, losses from house property rental, and capital gains from sale of art. The document also discusses key compliance requirements like TDS, advance tax payments, and income tax return filing due dates. It summarizes special provisions for new units in SEZs, additional depreciation, and deductions available for undertakings located in certain states.

1. INCOME TAX ACT BY C A M A N I S H S O M A N I B. Com, FCA B A H E T I & S O M A N I Chartered Accountants www.bandsindia.com

3. key info KEY INFORMATION: Income from Salary Key Points: In certain cases, an employee can claim both HRA as well as Interest on Housing Loan. Income from House Property Key Points: If interest paid for property given on rent is less than taxable rent (after standard deduction – 30%), such loss can be set off against income from other heads including Income from Salary. Income from Capital Gains Key Points: Surplus/Deficit from Derivative Contracts is non-speculative.

14. Sec 41 (1) & Sec 59 Section 41(1) and Sec 59 : Where an allowance or deduction has been made in the assessment year in respect of loss, expenditure or trading liability incurred by the assessee and subsequently during any previous year any benefit is derived by the assessee, then that benefit is chargeable to Income Tax as income from business or profession. Also, if any amount is received in excess of WDV of Block of Asset, then so much of the excess as does not exceed the difference between the actual cost and the written down value shall be chargeable to income-tax as income of the business.

15. Sec 41(1) & Sec 59 Where an asset representing expenditure of a capital nature on scientific research (Sec 35) is sold, the amount received to an extent of deduction claimed is charged as business Income. Bad Debts recovered are business income. However, remission of Capital Liability is not business income.

17. Sec 145A Valuation of Closing Stock Sec 145A – Valuation of Closing Stock As per Accounting Standards - Para 6 and 7 of AS-2 " Valuation on Inventories" implies that "Cost of Purchases" includes only those taxes, which are not subsequently recoverable by the enterprise from the taxing authorities." As per Income Tax (Section 145A) – Notwithstanding anything to the contrary contained in section 145 , the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head “Profits and gains of business or profession” shall be— (a) in accordance with the method of accounting regularly employed by the assessee; and

18. Sec 145A Valuation of Closing Stock (b) further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation Reporting Requirements Effect needs to be quantified in the Tax Audit Report. Mum ITAT – Dy. CIT v/s Hitech Plast Containers Pvt. Ltd., it was held that irrespective of the method followed by the assessee for accounting excise duty, adjustments as specified u/s 145A are to be made.

23. New procedure forex payments New Procedure for Remittance w.e.f. 01-07- 2009 (Notification No. 30/2009): Current Procedure: Instructions are given to Bank for payment along with a Certificate obtained from Chartered Accountant regarding applicability of TDS and payment thereof. New Procedure: Certificate to be obtained from Chartered Accountant in Form 15CB Form 15 CA to be filled in and upload on designated Income Tax site for which an Online Acknowledgement would be generated Instructions to be given to Bank along with the Acknowledgement.

24. QUESTIONS?

25. THANK YOU