1. BASIC CONCEPTS MEANING OF ASSESSMENT YEAR SECTION 2(9)
MEANING OF PREVIOUS YEAR SECTION 3
MEANING OF PERSON SECTION 2(31)
MEANING OF ASSESSEE SECTION 2(7)
MEANING OF INCOME SECTION 2(24)

2. BASIC CONCEPTS SALIENT FEATURES OF INCOME :
REGULAR AND DEFINITE SOURCE
RECEIPT V/S ACCRUAL
INCOME INCLUDES LOSS
SAME INCOME CANNOT BE TAXED TWICE
INCOME SHOULD BE REAL AND NOT FICTIONAL
ILLEGAL INCOME
PRIZE ON WINNING A MOTOR RALLY
LOTTERY INCOME – SECTION 2(24)(9)

3. GROSS TOTAL INCOME
MEANING OF GROSS TOTAL INCOME : DEFINED UNDER SECTION 80B(5).
AS PER SECTION 14, THE INCOME IS COMPUTED UNDER THE FIVE HEADS OF INCOME :
THE AGGREGATE OF INCOME UNDER THESE HEADS OF INCOME IS TERMED AS GROSS TOTAL INCOME.
GROSS TOTAL INCOME MEANS TOTAL INCOME COMPUTED IN ACCORDANCE WITH THE PROVISIONS OF THE ACT BEFORE MAKING DEDUCTIONS UNDER SECTION 80C-80U.

4. GROSS TOTAL INCOME
As per Sec 14 Income of a person is computed under the following five heads :
Salary XXXX
Income from House Property XXXX
Profits and Gains of Business XXXX
or profession
Capital Gains XXXX
Income from Other sources XXXX
XXXX
Less Set Off and carry forward of losses XXXX
xxxxx
GROSS TOTAL INCOME
Less Deductions u/s 80 C – 80 U XXXX
TOTAL TAXABLE INCOME XXXX

5. Computation of Tax Liability
Tax on Net Income XXX Add Surcharge XXX Tax and Surcharge XXX Add Education Cess of Tax and Surcharge) XXX Less Prepaid Taxes XXX (TDS and Advance Tax) XXX Final Tax Liability XXX

6. AGRICULTURAL INCOME AGRICULTURAL INCOME IS DEFINED U/S 2(1A)
ANY INCOME DERIVED FROM LAND WHICH IS SITUATED IN INDIA AND IS USED FOR AGRICULTURAL PURPOSES.
ANY RENT OR REVENUE DERIVED FROM LAND WHICH IS SITUATED IN INDIA AND IS USED FOR AGRICULTURAL PURPOSES.
ANY INCOME ATTRIBUTABLE TO A FARM HOUSE
W.E.F 01APRIL2009 ANY INCOME DERIVED FROM SAPLINGS OR SEEDLINGS GROWN IN A NURSERY SHALL BE DEEMED TO BE AGRICULTURAL INCOME – EXPLANATION 3 TO SECTION 2(1A).
BASIC OPERATIONS PRIOR TO GERMINATION ARE ESSENTIAL. BASIC OPERATIONS INVOLVE EXPENDITURE OF HUMAN SKILL, LABOUR, TILLING OF LAND, SOWING OF THE SEEDS, PLANTING ETC.
SUBSEQUENT OPERATIONS SUCH AS WEEDING,DIGGING OF THE SOIL, REMOVAL OF UNDESIRABLE GROWTH ETC.

7. INSTANCES OF AGRICULTURAL INCOME
PROFIT ON SALE OF STANDING CROP AFTER HARVEST BY THE CULTIVATING OWNER.
RENT FOR AGRICULTURAL LAND RECEIVED FROM SUBTENANTS.
INCOME FROM GROWING FLOWERS AND CREEPERS.
NON AGRICULTURA INCOME INSTANCES
INCOME FROM SALE OF FOREST TREES, FRUITS AND FLOWERS GROWN SPONTANEOUSLY.
INCOME FROM SALE OF WILD GRASS.
INCOME OF SALT PRODUCED BY FLOODING THE LAND WITH SEA WATER.
PROFIT ACCRUING FROM PRUCHASED OF STANDING CROP AND RESALE.
INCOME FROM FISHERIES.
ROYALTY INCOME OF MINES.
INCOME FROM BUTTER AND CHEESE MAKING
INCOME FROM POULTRY FARMING
RECEIPT FROM TV SERIAL SHOOTING IN FARM HOUSE

8. SALARY SALIENT FEATURES OF SALARY
RELATIONSHIP BETWEEN EMPLOYER AND EMPLOYEE
SALARY AND WAGES NOT DIFFERENT
SALARY MUST BE REAL AND NOT FICTIONAL
FOREGOING OF SALARY
SURRENDER OF SALARY TO CENTRAL GOVT. U/S 2 OF VOLUNTARY SURRENDER OF SALARY (EXEMPTION FROM TAXATION) ACT 1961.

9. SALARY
TAX FREE SALARY.
SALARY IS TAXABLE ON RECEIPT OR ACCRUAL BASIS WHICHEVER IS EARLIER.
SALARY IS TAXABLE AT A PLACE WHERE SERVICES ARE RENDERED I.E. IF THE NON RESIDENT RENDERS SERVICES IN INDIA AS AN EMPLOYEE HE SHALL BE LIABLE TO TAX IN INDIA FOR THIS SALARY U/S 9(II).
SALARY RECEIVED BY A GOVT EMPLOYEE WHO IS AN INDIAN CITIZEN FOR RENDERING SERVICES OUTSIDE INDIA SHALL BE TAXABLE IN INDIA ONLY U/S 9(III).
PROFIT IN LIEU OF SALARY SECTION 17(III)

10. SALARY CONTD
SALARY INCLUDES SECTION 17(I)
WHAT A
GREAT
FUN
AND
LOVE
AROUND
AHA

11. COMPUTATION OF SALARY
BASIC SALARY XXX
ADD : SPECIAL PAY XXX
ADD : BONUS XXX
ADD : FEES/COMMISSION XXX
ADD : ADVANCE SALARY XXX
ADD : TAXABLE ALLOWANCES XXX
ADD : TAXABLE PERQUISITES XXX
ADD : RETIREMENT BENEFITS
GRATUITY XXX
PENSION XXX
LESS : DEDUCTIONS
ENTERTAINMENT ALLOWANCE
PROFESSIONAL TAX

12. ALLOWANCES
HRA SECTION 10(13A)
ALLOWANCES EXEMPT TO THE EXTENT AMOUNT USED FOR OFFICIAL PURPOSES
ALLOWANCES EXEMPT TO THE EXTENT LIMITS SPECIFIED IN THE ACT
FULLY TAXABLE ALLOWANCE

13. PERQUISITES
RAM
COULD
SAVE
LAXMAN
FINALLY
SITA
CLAPPED

14. SPECIFIED EMPLOYEE – PERQUISITE SECTION 17(2)(III)GO
ENJOY
TODAY IS
SUNDAY
MEDICAL ALLOWANCES
MOTOR CAR PERQUISITES

15. NOTES WRITE A SHORT NOTE ON RETRENCHMENT COMPENSATION SECTION 10(10B)
PROFIT IN LIEU OF SALARY
SALARY RECEIVED UNDER VRS
ENTERTAINMENT ALLOWANCE
LEAVE TRAVEL CONCESSION
WHAT ARE NON TAXABLE PERQUISITES ?
CONTRIBUTION TO A RECOGNISED PROVIDENT FUND
INTEREST FREE LOAN LESS THAN RS
LOAN FOR MEDICAL TREATMENT
PROVIDING USE OF COMPUTER,LAPTOP
LEAVE TRAVEL CONCESSION TWICE IN A BLOCK OF 4 YEARS
MEDICAL FACILITY IN THE HOSPITAL MAINTAINED BY EMPLOYER OR GOVT.
FREE FOOD AND BEVERAGES
GIFT IN KIND UPTO RS
EMPLOYERS CONTRIBUTION TOWARDS SUPERANNUATION EXCEEDING RS 1 LAKH
TELEPHONE, MOBILE NOT CHARGEABLE TO TAX.

16. GRATUITY RECEIVED BY GOVT EMPLOYEE
GRATUITY RECD BY EMPLOYEE COVERED UNDER PAYMENT OF GRATUITY ACT 1972
OTHER CASES OF GRATUITY

17. UNCOMMUTED PENSION IS FULLY TAXABLE IN EVERY CASE.
COMMUTED PENSION IN CASE OF GOVT EMPLOYEE IS FULLY EXEMPT
COMMUTED PENSION BY OTHER EMPLOYEES

18. MEANING OF SALARY FOR DIFFERENT PURPOSES
HRA - BASIC + DA(FP) + COMMISSION
ENTERTAINMENT ALLOWANCE – BASIC
RECOGNISED PF - BASIC + DA(FP) + COMMISSION
GRATUITY – BASIC + DA(FP) + COMMISSION
PENSION – BASIC + DA(FP) + COMMISSION
PERQUISITES
BASIC + DA(FP) + COMMISSION +BONUS + TAXABLE ALLOWANCES – (WILL NOT INCLUDE DA NOT FORMING PART OF RETIREMENT + PERQUISITES + PF CONTRIBUTION + INTEREST EXCEEDING 9.5%).
IF FURNITURE OR ANY OTHER ASSET IS PROVIDED THEN 10% OF THE ACTUAL COST SHALL BE CONSIDERED.