1. Income under head salaries. 2. 2. Income from house property 3. Profits and gains of business or...

1. Income under head salaries.2. 2. Income from house property3. Profits and gains of business or

professions4. Capital gains5. Income from other sources

CA Mastan Singh Chambyal (ACA, LCS, M.Com) 9888127510,

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Income can be charged only if there is an employer employee relationship between the payer and payee.

SALARY INCLUDES :Basic salary or wagesAny annuity or pensionGratuityAdvance of salaryLeave encashment CommissionRetirement benefits.


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The aggregate of the above incomes , after exemption

available , is known as Gross Salary and this charged under the head

income from salary.Basic salary along with commission

and bonuses is fully taxable.


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An allowance is a fixed monetary amount paid by the employer to

the employee for expenses related to office work. Allowance

are generally included in the salary and taxed unless there are

exemption available.


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Dearness allowance. City compensatory

allowance. Overtime allowance Servant allowance Lunch allowance


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Conveyance allowance .House rent allowance (HRA).Leave travel allowance (LTA).Medical allowance


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1. Conveneyance allowance

2. House rent allowance

3. Leave travel allowance

4. Medical allowance

1. Upto Rs 800 per month.

2. On certain calculation.

3. Twice in the block of two year.

4. Upto Rs 15000 per annum is tax free.

ExemptionCA Mastan Singh Chambyal (ACA, LCS, M.Com) 9888127510,

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Perquisites are benefits in addition to normal salary to

which an employee has a right by way of his employment.

Employer gives Form 16 which will contain all the earnings, deduction and exemption

available.CA Mastan Singh Chambyal (ACA, LCS,

M.Com) 9888127510, [email protected]

Any residential , industrial or commercial property that you

own will be taxed as well. Even if your house property is not let out, it will be considered as

deemed to be let out and you need to pay tax on it.


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Any income earned by any businessman / professionals will be taxable under this head of income

The income chargeable to tax is the difference between the credits received on running the business and expenses incurred.

Deduction allowed -:

1. Expenses directly related to Business.

2. Depreciation of assets used

3. Rent for premises

4. Insurance

5. Repairs of machinery, furniture

6. Advertisements

7. Travelling etc.


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Any profit or gains arising from transfer of the capital assets held as investment

are chargeable to tax under the head “CAPITAL

GAINS”. CA Mastan Singh Chambyal (ACA, LCS,


For example :-1.Sale of building2.Sale of land3.Sale of shares, debentures etc.


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Any income that does not fall under the four heads above is taxed under the head “INCOME FROM OTHER SOURCES”. Certain examples are-:

1.Income from bank deposits2.Winning from lottery3.Sum of money exceeding Rs. 50,000.(received

from person other than relative)4.Income from bank interest5.Income from divident


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Deduction available for taxpayer are -:LIFE INSURANCE PREMIUM

CONTRIBUTIONS TO PROVIDENT FUND

SUBSCRIPTION TO CERTAIN EQUITY SHARES OR

DEBENTURES


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Deduction available under section 80c

Deduction available from gross total income.

Only an individual or a Hindu Undivided Family can claim deduction.


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Any sums paid or deposited in the previous year by the assessee as -:

Life insurance premium A deferred annuity contract.Deduction from salary payable by or on

behalf of the government .Statutory provident fund.Public provident fund.Sum deposited in post office savings

bankCA Mastan Singh Chambyal (ACA, LCS,


As subscription to any units of any mutual fund referred u/s. 10(23D).

As a contribution by an individual to any pension fund referred u/s 10(23D).

As subscription to notified deposit schemes of-:

1.Public sector company providing finance for purchase/construction of residential houses in india.

2.Any authority constituted in india for the purposes of housing or planning, development of cities, towns etc.


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tuition feespurchase or construction of a residential house property.

subscription to equity shares or debentures approved by Board.

Term Deposit (Fixed Deposit)Senior Citizen Savings Schemes Rules, 2004.

Post Office Time deposit Rules, 1981.


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No deduction shall be allowed to assessee in the previous year of happening of following events. If the assessee:—

1.Terminates the contract of insurance.2. Terminates the participation in any ULIP

plan.3.Transfers his house property .4.Sales or transfers any equity shares or

debentures.5.Withdraw any amount before the expiry of the

period of five years from the date of deposit.


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If an assessee deposits any amount out of his income chargeable to tax or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the fund referred to in section 10(23 AAB), he shall be allowed a deduction of the amount equal to the deposit or Rs. 1,00,000 whichever is less.

If any amount paid or deposited by the assessee, has been allowed as a deduction u/s 80CCC, then a deduction of such amount shall not be allowed u/s 80C.CA Mastan Singh Chambyal (ACA, LCS,


It is a deduction in respect of contribution to pension scheme of central government.

Persons covered : Employee/ Employer of central government or any other assessee being an individual.

Eligible amount : Deposit or payment made by the employee, individual and central government under a pension scheme notified by the central government.


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It is a Deduction in respect of medical insurance premia.

It provide a deduction of Rs. 15,000/- to an individual or HUF to keep in force an insurance on the health of the assessee, spouse, dependent parents or children of the assessee.

This deduction is allowed up to Rs.20,000/- in case of health insurance for senior citizens.


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It is a deduction for physically handicapped & disabled dependent.

A total deduction of Rs. 50,000 will be available to the parents, spouse, Children in respect of either medical expenditure incurred on medical treatment or for the deposits for future needs of the disabled or handicapped dependent.

However in case of 80% or more of disability a sum of Rs. 1,00,000 is allowed.


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It is a deduction for medical treatment of serious ailments.

If a individual or HUF actually pays any amount for the medical treatment of a specified disease or ailment for himself or dependent or a member of HUF (in case of HUF assessee), then the amount actually paid or Rs. 40,000/- whichever is less shall be allowed as deduction.

Rs.60,000/- if the patient is a senior citizen whichever is less shall be allowed as deduction.


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It is a deduction in respect of interest on loan taken for higher education.

The following conditions should be satisfied-:

a)The taxpayer is an individual.b)Taken a loan for the purpose of pursuing his higher education.

c)Taxpayer has paid interest on such loan in previous year.


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It is a deduction in respect of donations to certain funds, charitable institutions, etc.

Persons covered - All assessees s paying donations to the app association or to any other association or institution for the development of infrastructure for sports & games or the sponsorship of sports & games, in India.

Eligible amount - Any sums paid in the previous year as donations to certain funds, charitable institutions etc. Specified u/s. 80g(2).

Relevant conditions/points1. Donation in kind is not eligible for deduction.2. Donations paid out of another year’s income or out of

income not includible in the assessment of current year are also eligible for deduction.


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It is a deduction of rents paid.The excess of 10% of total income payment

of rent in respect of any furnished or unfurnished accommodation occupied by him for the purpose of his own residence.

The extent of Rs. 2,000 per month or 25% of his total income, whichever is less, will be allowed.

This deduction is allowable to only those assessees who do not own any residential accommodation.


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It is a deduction in case of a person with disability.

Persons Covered-: Individual resident in India.

Conditions -: 1.Assessee must attach a copy of certificate

signed by medical authority along with return of income filed u/s. 139.

2.Medical authority means the medical authority referred u/s. 2(p) of Persons with Disabilities.

3.“Person with Disability” means a person as referred to in Sec. 2(f)


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Rs. 50,000/- in case of normal disability or

Rs. 1,00,000/- in case of severe disability.


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With Best Regards & Thanks

CA Mastan Singh Chambyal Managing Partner at

M S Chambyal & Associates (Chartered Accountants)

Contact Sco 373/2 Sector 32 D , Chandigarh9888127510

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mailto:[email protected]

http://www.camschambyal.com/

1. Income under head salaries. 2. 2. Income from house property 3. Profits and gains of business or...

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