for education purpose only .

1. INCOME TAXPROJECT REPORT
BY GURDARSHAN KUMAR

2. WHAT IS TAX INCOMETAX ACT ,1961
“Taxes are due that we pay for the privileges of
membership in an organized society.”
Tax is a compulsory payment made to the Government
for services it provides us , though people may not be
completely satisfied or convinced with these services.
-eg: Income tax is an instrument used by the
government to achieve its social and economic
objectives

3. TAX
DIRECT
Income tax Wealth tax
Indirect tax
Intra-state
CGST(Central) SGST(state)
Inter-state
IGST(Cental )

4. FIVE MAIN HEADS OF
INCOME ACCORDING TO SECTION 14

5. *This clause essentially any
remuneration, which is received by
an individual on terms of services
provided by him based on a
contract of employment. This
amount qualifies to be considered
for income tax only if there is an
employer-employee relationship
between the payer and the payee
respectively.
* Salary also include the basic
wages or salary , advance
salary,pension,commission,gratuity
,perquisites as well as annual
bonus.
*

6. INCOME FROM
HOUSE PROPERTY
 According to the Income Tax
1961, section 22 to 27 is dedicated
to the provisions for the income
tax computation of the total
standard Income of a person
from the house property or land
that he or she owns. An
interesting aspect is that the
charge is derived out of the
property or land and not on the
amount of rent received .
However, if the property is
utilized for letting out the
normal course of business , then
the income from the rent will be
considered.

7. The income tax computation of the total income
will be attributed from the income earned from
the profits of business or profession. The
difference between the expenses and revenue
earned will be chargeable , here is a list of the
income chargeable under the head;
 Profits earned by the assessee during the
assessment year
 Profits on income by an organisation
 Cash received by an individual on export
under a government scheme
 Profit , salary or bonus received as a result
of a partnership in a firm
 Benefits received in a business

8. INCOME FROM CAPITAL GAINS
Capital gains are
the profits or gains
by an assessee by
setting or
transferring a
capital asset,
which was held as
an investment .
Any property ,
which is held by an
assessee for
business or
profession , is
termed as capital
gains .

9. Income of every kind received by a
person in a tax year , { if it is not included
in any other head } other than income
exempt from tax under ordinance, shall
be chargeable to tax in that year under
the head –income from other sources,
including the following namely:-
a) dividend
b) royalty
c) profits on debt;
d) ground rent ;
e) rent from the sub –lease of land or a
building ;
f) income from the lease of any building
together with plant or machinery ;
fa) income from provision of amenities ,
utilities , or any other service
connected with renting of building;
g) any annuity or pension ;
continue
casino
Gift
Horse
race

10. Continue ;-
h) any prize bond , or
winnings from a raffle , lottery
{ prize on winning a quiz ,
prize offered by companies
for promotion of sale } or
cross puzzle ;
i) any other amount received
as consideration for the
provision , use or exploitation
of property , including from
the grant of a right to explore
for , or exploit , natural
resources ;
j) the fair market value of any
benefits , whether convertible
to money or not , received in
connection with the provision
, use or exploitation of
property :

11. SLABS FOR INCOME TAX BY CITIZENS
INCOME SLAB TAX RATE
UPTO RS.2,50,000 NIL
RS. 2,50,001-RS .5,00,000 5%
RS. 5,00,001-RS . 10,00,000 20%
ABOVE RS . 10,00,000 30%
SLABS RATE FOR INDIVIDUAL
BELOW 60 YEARS

12. FOR SENIOR CITIZENS ( Above 60years but till 80 years)
INCOME SLABS TAX RATE
UP TO RS . 3,00,000 NIL
RS . 3,00,001-RS . 5,00,000 5%
RS . 5,00,001-RS . 10,00,000 20%
ABOVE RS . 10,00,000 30%

13. FOR SUPER SENIOR
CITIZENS ( ABOVE 80 YEARS )
INCOME SLAB TAX RATE
UP TO RS . 5,00,000 NIL
RS . 5,00,001- RS . 10,00,000 20%
ABOVE RS . 10,00,000 30%
Above rates are subjects to education cess @ 2% and higher
education Cess @ 1 % and surcharge at prescribed percentage .

14. ; CALCULATE
INCOME TAX
TOTAL TAXABLE INCOME 12,00,000
2,50,000 NIL 0%
2,50,000 5% 12,500
5,00,000 20% 1,00,000
2,00,000 30% 60,000
TOTAL

15. Deduction under income tax
Deduction
for income
from salary
(rebate
40,000
standard )
80D (medical
insurance
premium)
25000 for normal
citizens
35000 for senior citizens
80TTA (interest
on savings )
Normal citizen , individual and Hindu
undivided family rebate rupees 10,000
on saving interest only for saving
account in banks/post office
Senior citizen ,rebate rupees 50,000 on
F.D.R ( fixed deposit receipt ) interest in
banks and post office
80C ( income tax
rebate 1.5 lakh
maximum)
1.Life insurance premium
2. Tuition fees
3. Repayment of principal portion of
housing loan
4. Deposit in provident fund etc.
under
chapter
VI A
80c, 80D,
80TTA
etc.
Continue

16. Deduction –income from head house
property
Net annual value (
actual rent received or
FMV ( Fair market
value ) whichever is
higher
Section 24 A -30%
deduction flat and 70%
pay
Section 24 B – interest
on housing loan (if self
occupied maximum
interest is allowed 2 lakh)
House loan principal
repayment ; when you are
repaying your home loan
through EMI. It contains both
principal and interest. Interest
on home loan can give you tax
deduction under section 24.but
the principal repayment you
are making will qualify for
section 80C tax benefits.
continue
Continue

17. Deduction – income from head
business and profession
Section 44AD
(only for trader
and
manufacture/whol
e sale
8% of sales
( if sale less
than 2 cr.
6% of sales if
all sales
through bank
(RTGS) (
bank to bank
payment )
Section
44ADA
Only for
professional
s (CA,
advocate ,
architect )
minimum
50% of
sales
(revenue) if
revenue
less than 50
lakh
Section
44AE
On freight , not
on rent truck
If an assess has
10 or less
trucks any time
during the
previous year
than . He/she
can delude
presumptive
income of 7500
per month or
part of the
month per truck
Continu
e

18. Deduction –income
from the head
capitals gains
Short time
capitals gains
(1 years) 15%
Long time
capital gains (
after 1 years
more ) 20%
Continue

19. CONTINUE

20. *
1.Income from salary xxxxxx
2.Income from house property xxxxxx
3.Income from business and profession xxxxxx
4.Income from capital gains xxxxxx
5.Income from other sources xxxxxx
GTI ( gross total income ) ______
less ;- deduction ______
TOTAL TAXABLE INCOME ______
(Tax calculate on total taxable income by slabs and after
calculate tax , 4% cess on the end calculate tax and
further pay tax)