DIRECT TAX II

PRESENTATION

MADE BY:- MOHAMMAD SAAD

B.Com (Hons)
A7004614096
 Expenses in respect of building – Rent, Repair, local taxes etc.
 Expenses in respect of Plant & Machinery, furniture, repairs & Insurance
Premium.
 Depreciation On Tangible Assets for ex- Building, furniture & Plant and
Machinery
 Depreciation On Intangible Assets for ex- Copyrights, patents, license,
franchise etc.
 Expenditure On Scientific Research.
 - Revenue and Capital Expenditure
 - Sum paid for Scientific Research – Deduction Is 175% of sum paid
 - Sum paid for special or statistical research- 125% of sum paid
 -Expenditure on house research & development – 200% of the
expenditure.
 Deduction regarding capital expenditure to obtain license to
separate telecommunication service
 Expenditure on Agricultural Extension Project Incurred by a
Company- 150% of Expenditure
 Expense on Voluntarily Retirement during any P.Y – Deductible in
five Installments annually.
 Bad Debts
 Bonus or Commission to Employee
 Discount on zero coupon bond
 Contribution To Recognized Provident Fund, approved gratuity
fund.
 Insurance Premium for Health Of Employee.
 For All Assesses:-
 Expenditure on Advertisement in any service, etc. published
by a political party
 Payment out of India to a non-resident or a foreign company
on which tax is deductible at source but has not been
deducted or after deduction has not been paid.
 For Firms- Salary, Bonus, Commission or remuneration to a
working partner in excess of 12% p.a
 Int. on loan or capital to a partner in excess of 12%
 Any sum payable by the assesse by way of tax, duty cess or
fee
 Any sum payable by him as an employer by way of
contribution to any provident fund, gratuity fund or any other
fund for the welfare of the employee.
 Any sum paid by the assesse in lieu of earned leave.
 Any sum payable by the assesse as Interest on any loan from
any public financial institution or a state financial corporation
or a state industrial investment corporation.
 Any sum payable by the assesse as Interest to a scheduled
bank on any load or advance from a scheduled bank.
 For filing offline- Submit the ITR form with acknowledgement slip to the income tax
department of your area.
 -If some areas there are classes of individuals so if required you can submit your ITR
with A.O after mentioning the area like Salaried person circle, Professional circle etc.
 Filing Online- Visit www.icometaxidia/efiling/gov.in
 Select the required ITR form and download return proportion software for the selected
form.
 Prepare your return offline and upload your return.
 On successful upload take the print out of the acknowledgment form if the return is
digitally signed.
 In case the return is not digitally signed take the print out of ITR V form (2 copies)
 Send one copy of the form duly signed and verified within 120 days from the date of
filing ITR to the following address
 - Post Bag No-1, Electronic city office, Bengaluru-S60100 (Karnataka)
 PAN (Permanent Account Number)
 For salaried employees- Form 16 issued by the employer
 -Documents related to interest income
 -bank statement/ passbook for interest on saving a/c
 -Interest Income statement for fixed deposit
 -T.D.S certificate issued by banks and others.
 Form 26 A.S – It is a summary of taxes deducted on your behalf and
taxes paid by you.
 Section 80 Investments- Investments made under PPF, NSC,ULIPS(Unit
Linked Insurance Plan) etc. qualify for deductions under sec 80c.
 Other Investment Documents.
 Interest Paid on housing loan (for self occupied house)
 Stock Trading Statement.
S NO. SECTION PERSON ENTITLED TO QUANTUM OF DEDUCTION
DEDUCTION

6. 80 DD •Individual Disability Rs. 50,000.

•H.U.F Severe disability Rs. 1,00,000.

7. 80 DDB •Individual (i) Amount paid or Rs. 40,000 ,

•H.U.F whichever is less.
(ii) Senior citizen upto Rs. 60,000
Less: Amount received from
insurer/employer.

8. 80 E Individual Amount paid.

9. 80 EE Individual (i) Upto Rs. 1,00,000 in A.Y. 2014-15.

(ii) 1,00,000- Deduction in (i).
S NO. SECTION PERSON ENTITLED TO QUANTUM OF DEDUCTION
DEDUCTION

10. 80 G All assessees 100% of Qualified Specified Donations of national

importance.
50% of other Qualified Donations.

11. 80 GG Individuals 25% of Total Income or Rs. 2000 p.m. , whichever

is less.

12. 80 GGA All assessees 100% of amount paid.

13. 80 GGB Indian Company Whole amount.

14. 80 GGC Assessees except local Whole amount.

authority/ person funded by
govt.

15. 80 U Residential Individuals. Disability Rs. 50,000.

Severe disability Rs. 1,00,000.
 Self-assessment
 System under which the taxpayer is required to declare the basis of his assessment (e.g. taxable
income), to submit a calculation of the tax due and, usually, to accompany his calculation with
payment of the amount he regards as due. The role of tax authorities is to check (perhaps in
random cases) that the taxpayer has correctly disclosed his income.
 Regular Assessment
 -Means assessment done on the basis of evidence or best judgment assessment
 Summary Assessment-
 -In such assessment neither the assesse is called in the department nor he is required to produce
his books of a/c’s or other documents. Where a return is filed u/s 139 or in response to a notice
u/s 142(1) such return shall be proceeded in the following manner:-
 1-The TI or loss shall be computed after making following adjustments-
 -any arithmetical error in the return
 -any incorrect claim.
 2- The tax & interest if any shall be computed on the basis of the total Income under (1)
 3-The sum payable by or the amount of refund due to the assess shall be determined
 On the basis of Evidence- When the AO considers it necessary to verify that
correctness or completeness of the return to ensure that the Income has not
been underrated or underpaid or the loss declared is not excessive. He shall
serve on the assesse a notice either to attend his office or to produce on a data
specified any evidence in support of his return. However such a notice can be
served only within 6 months from the end of financial year in which the return
is Filed.
 Best Judgment Assessment- In the nest judgment assessment the AO should
really base the assessment on his best judgment, he must not act dishonestly.
He can use the local knowledge and the guess work should be honest.
 Re-Assessment- It is assessing the Income of the assesse that has already been
assessed once and also any other Income which comes to notice of AO
subsequently during the re-assessment proceedings. It can be also be done in
cases where there was no previous assessment done and the AO has reason to
believe that there is evasion of tax.