Preface

Tax collection is the backbone of any economy and Indian economy is no exception. World over taxes are collected in two ways, one of them being Direct Taxes and other being Indirect Taxes. In matured economies share of Direct Taxes in the total tax pie is higher than Indirect Taxes. It is a basic canon of taxation that more revenue shall come from Direct Taxes. Of late India is also moving on this path and very recently share of Direct Taxes in the entire Tax pie has gone up. Direct tax collection for year 2017-18 stood at Rs. 10 lakh crores and target for Financial Year 2018-19 is Rs. 11.5 lakh crores. Government is making all round efforts to bring more and more persons into the tax net and taking several measures in this regard. With the number of assessees going to rise by leaps and bounds in the coming years, the responsibility on tax professionals to guide them for proper compliance of tax laws becomes onerous. Here comes the need of a handy product by referring to which tax professionals can arrive at a quick solution of any query posed by existing or a new client. At the time of filing of return or providing consultation to a client both, the tax professional has to be fully acquainted with every bit of law and procedure, which is in effect on the date of filing return or providing consultation. Keeping the requirements of a tax consultant in mind we have devised this Single Volume Income Tax Practice Compendium as a comprehensive yet compact tool so as to enable the tax professional to discharge practically all his responsibilities with full ease and comfort.

This book contains the entire law of income-tax fully updated in the wake of Finance Act, 2018 alongwith reference to related Rules, Circulars and Notifications wherever felt necessary. The icing on the cake are Illustrations as to various computational issues sprinkled over text of the book. The complex subject matter of Income Tax Act is presented in a lucid manner by subdividing the same in a large number of small paras, preceded by appropriate para headings and sub-headings to make it a user friendly product. The entire subject matter is supplemented with carefully selected case laws. So this book comes as a combination of law and practice relating to Direct Taxes. We are sure that this book will help the user to quickly arrive at a solution to the posed problem supported by case law and enable him to discharge his duty as a tax professional more effectively and purposefully.

The subject matter in this Book is arranged Sectionwise. There are deviations but few and far between and they are in our attempt at placing the required material at the place where it will generally be looked for by the readers.

The subject matter of the entire book is divided in scientifically devised 40 Parts as under :

Part I

:

Basic Concepts, Chargeability of Incomes [Sections 2 to 9A]

Part II

:

Certain Exempt Incomes [Sections 10 & 10AA]

Part III

:

Charitable Trusts [Sections 2(15) & 11 to 13, 115BBC, 115TD to 115TF]

Part IV

:

Exemption to Political Parties and Electoral Trust

Part V

:

Heads of Income and Disallowance under Section 14A

Part VI

:

Income from Salary [Sections 5A, 15, 16 & 17]

Part VII

:

Income from House Property [Sections 22 to 27]

Part VIII

:

Profits and Gains from Business or Profession [Sections 2(13), 2(36), 28 to 44DB]

Part IX

:

Capital Gains [Sections 45 to 55A]

Part X

:

Rates of Tax on Capital Gains [Sections 111A, 112, 112A]

Part XI

:

Income from Other Sources [Sections 56 to 59 and 94]

Part XII

:

Clubbing [Sections 60 to 65]

Part XIII

:

Cash Credits and Income from Undisclosed Sources [Sections 68 to 69D, 115BBE and 271AAC]

Part XIV

:

Losses [Sections 70 to 80]

Part XV

:

Deduction Under Chapter VI-A and Relief under Section 87A [Sections 80A to 80U and 87A]

Part XVI

:

Double Tax Avoidance Agreement (DTAA) [Sections 90, 90A, 91]

Part XVII

:

Transfer Pricing [Sections 92 to 92F]

Part XVIII

:

Tax Avoidance [Sections 93 and 94A]

Part XIX

:

General Anti Avoidance Rules (GAAR)

Part XX

:

Determination of Tax in Certain Special Cases

Part XXI

:

Corporate Taxation

Part XXII

:

Tax on Distributed Income, Etc. [Sections 115R to 115T, 115TCA, 115U to 115UB]

Part XXIII

:

Income Tax Authorities and Their Powers [Sections 116 to 133C]

Part XXIV

:

Return, Permanent Account Number and Assessment [Sections 139 to 144C]

Part XXV

:

Method of Accounting, Valuation of Stock and ICDS [Sections 145, 145A & 145B]

Part XXVI

:

Reassessment [Sections 147 to 153]

Part XXVII

:

Period of Limitation [Section 153]

Part XXVIII

:

Rectification of Mistake and Rectification in Certain Specified Cases [Sections 154, 155]

Part XXIX

:

Liability in Special Cases [Sections 159 to 179]

Part XXX

:

HUF and Taxation Thereof [Section 171]

Part XXXI

:

Taxation of Partnerships [Sections 40(b), 184 to 189A]

Part XXXII

:

TDS and TCS [Sections 190 to 206CC]

Part XXXIII

:

Advance Tax and Recovery [Sections 207 to 229 and 232]

Part XXXIV

:

Interest and Fee [Sections 234A to 234F]

Part XXXV

:

Refunds [Sections 237 to 245]

Part XXXVI

:

Settlement of Cases and Advance Ruling [Sections 245A to 245L and Sections 245N to 245V]

Part XXXVII

:

Appeals [Sections 246A to 262 and Sections 265 to 268A]

Part XXXVIII

:

Revision [Sections 263 and 264]

Part XXXIX

:

Mode of Acceptance, Payment or Repayment in Certain Cases [Sections 269SS, 269ST & 269T]

Part XL

:

Penalties and Offences & Prosecution [Sections 270A to 280D]

Part XLI

:

Residuary Miscellaneous Provisions [Sections 281 to 294]

We believe that this effort of ours will be welcomed by tax professionals who will be benefitted to a large extent by contents of this book. This Compendium comprises reference to important Circulars, Case Laws available till June, 2018.

We intend to make it a regular yearly product. This year, being the very first, it took some time. However, 2019 and onwards we intend to bring it upto the month of June in that particular year.

Though we have tried to make it an error free and quality publication, however, we shall be grateful for any constructive suggestions and critical appreciation from our valued readers, so as to make the further editions all the more updated and useful.

JODHPUR

Dr. AVADHESH OJHA

AUGUST 15, 2018

CA. MANOJ GUPTA

INDEPENDENCE DAY

CA. (Dr.) NISHA BHANDARI