ITR4

1/28/2012

Taxmann/Dr. Vinod K. Singhania

1

Taxmanns TAX PAYERS PRESENTATION RETURN OF INCOME [ITR - 4]By

Dr. Vinod K. Singhania

Form ITR - 4 INDIAN INCOME TAX RETURN(For Individuals and HUFs having income from a proprietory business or profession)1/28/2012 Taxmann/Dr. Vinod K. Singhania 2

Guidelines for filing out parts and schedulesGeneral All items must be filled in the manner indicated therein; otherwise the return maybe liable to be held defective or even invalid. If any schedule is not applicable score across as ---NA--. If any item is inapplicable, write NA against that item. Write Nil to denote nil figures. Except as provided in the form, for a negative figure/ figure of loss, write - before such figure. All figures should be rounded off to the nearest one rupee. However, the figures for total income/ loss and tax payable be finally rounded off to the nearest multiple 1/28/2012 3 of ten rupees. Taxmann/Dr. Vinod K. Singhania

Guidelines for filing out parts and schedulesSequence for filling out parts and schedules Part A Schedules Part B Verification Details relating to TRP and counter signature of TRP if return is prepared by him.1/28/2012 Taxmann/Dr. Vinod K. Singhania 4

Points to be noted while filing ITR-4 in paper format No

document (including TDS certificate) should be attached to this form. Please fill acknowledgement slip and then submit the return. The return form is not required to be filed in duplicate.1/28/2012 Taxmann/Dr. Vinod K. Singhania 5

Modes of filing Income-tax returnsMode of filing Paper Form E-filing without Digital Signature Certificate Bar Code Return e-filing with Digital Signature Certificate

Acknowledgment slip

ITR-V

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Personal informationWrite first name Write middle name (If no middle name leave blank) Write surname Write 10 digit PAN, please ensure that first five letters of PAN are alpha and next four letters are numeric and the last one is alpha. For, e.g., AMUPK0123N

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Personal informationWrite Flat/Door/ Block No. Write Premises/ Building/ Village Write Area/ Locality

Write Road/ Street/ Post Office1/28/2012

Write Town/ City/ District

Write State name

Write 6 digit PIN Code8


Personal informationWrite Gender Write Date of Birth Tick on applicable status if individual tick on Individual otherwise on HUF

Optional

Optional

Govt. category will PSU category will include include Central Govt./ public sector companies of State Governments Central Govt. and State 1/28/2012 Taxmann/Dr. Vinod K. Singhania 9 employees Govt.

Write Ward/ Circle

Filing status

Description Voluntarily before the due date Voluntarily after the due date In response to notice under section 142(1) In response to notice under section 148 In response to notice under section 153A1/28/2012 Taxmann/Dr. Vinod K. Singhania

Code 11 12 13 14 1510

Filing status

If it is not revised return tick on original.

Tick the residential status. A person is resident if he is in India in the previous year for 182 days or more.1/28/2012 Taxmann/Dr. Vinod K. Singhania 11

Audit informationThere are two types of professions, one is Specified Professions and other is Non-specified Professions.

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Specified profession - For the purpose of section 44AA and rule 6F legal, medical, engineering, architectural, accountancy, etc. are specified professions. Non-specified profession - A non-specified profession is a profession other than a specified profession.

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Audit informationSpecified profession Category A Category B Gross receipts in the profession do not exceed Gross receipts in the profession Rs. l,50,000 in any of the three years exceed Rs. 1,50,000 in all the immediately preceding the previous year. three years immediately preceding the previous year. Persons coming under this category are required to maintain such books of account and other documents as may enable the Assessing Officer to compute their taxable income. The Board has not prescribed books of account to be maintained for persons falling under this category.1/28/2012

Persons coming in this category are required to maintain such books of account as are prescribed by rule 6F (specified books of account as discussed in next slide).


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Audit informationNon-specified profession Category CBusiness whose income from such business or profession does not exceed Rs. 1,20,000, or the total sales, turnover or gross receipts thereof are not in excess of Rs. 10,00,000 in all the three years immediately preceding the previous year.

Category DBusiness whose income from such business or profession exceeds Rs. 1,20,000, or the total sales, turnover, or gross receipts thereof are in excess of Rs. 10,00,000 in any of the three years immediately preceding the previous year.

Persons coming under this category are not Persons falling under this category are required required to maintain any books of account. to maintain such "books of account and other documents" as may enable the Assessing Officer to compute their taxable income. However, the Board has not prescribed the account books to be maintained by persons falling under this category.

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Specified books of account - For persons falling under category B: a . a cash book; b. a journal (in case of mercantile system); c. a ledger; d. carbon copies of bills (whether machine numbered or, otherwise serially numbered) exceeding Rs. 25 and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts; e. original bills in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person.1/28/2012 Taxmann/Dr. Vinod K. Singhania 16

Audit information

Who has to get his accounts audited on compulsory basis- Different taxpayers A person carrying on business A person carrying on profession A person covered under section 44AD, 44AE, 44AF, 44BB or 44BBB When they are covered by the provisions of compulsory audit under section 44AB If the total sales, turnover or gross receipt in business for the previous year(s) relevant to the assessment year exceed or exceeds Rs. 40 lakh. If his gross receipts in profession for the previous year(s) relevant to the assessment year exceeds Rs. 10 lakh. If such person claims that the profits and gains from the business are lower than the profits and gains computed under these sections (irrespective of his turnover).

Note: Section 44AB is not applicable in the case of assessees who come within the purview of section 44B or 44BBA.1/28/2012 Taxmann/Dr. Vinod K. Singhania 17

Nature of business

For detail list please see Instruction No. 9(ii).1/28/2012 Taxmann/Dr. Vinod K. Singhania 18

Sources of fundsThe Balance Sheet as on 31st March,2007 and the profit and loss account for financial year 2006-07 in the formats provided in these parts have to be filled in respect of proprietory business or profession carried out by you during the financial year 2006-07 if you were required to maintain accounts of the business or profession during the year.

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Sources of fundsLoan against which firm has furnished securities (for, e.g., mortgaged property, pledge). Loan against which firm has not furnished any securities. Deferred tax liability is as a result of temporary difference between accounting income and taxable income which will be payable in future years.1/28/2012 Taxmann/Dr. Vinod K. Singhania 20

Application of fundsInvestments which have been purchased with the intention of holding them for more than one year.

The investments made in other firm or company with a view to promote the trade of the firm and generally categorised as long term investment.1/28/2012 Taxmann/Dr. Vinod K. Singhania 21

Application of funds

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Application of funds

Deferred tax asset is as a result of temporary difference between accounting income and taxable income which will be deductible in future years.

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No account case

Please write these amounts as on 31-3-2007.

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Credit to profit and loss accountThe Balance Sheet as on 31st March,2007 and the profit and loss account for financial year 2006-07 in the formats provided in these parts have to be filled in respect of proprietory business or profession carried out by you during the financial year 2006-07 if you were required to maintain accounts of the business or profession during the year.

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Credit to profit and loss accountGenerally rent is not taxable as business income. It is taxable as income from house property. Commission is an income earned by rendering services.

Dividend income from a domestic company is not taxable.

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Credit to profit and loss accountInterest on units of mutual fund is not chargeable to tax.

Agricultural income in India is not taxable. However, it is taken into consideration for calculating tax on non-agricultural income.1/28/2012 Taxmann/Dr. Vinod K. Singhania 27

Debits to profit and loss accountWrite opening stock as on 1-4-2006

This information will be helpful in calculating disallowance under section 43B.

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Debits to profit and loss accountThis information will be helpful in calculating disallowance under section 43B. Contribution to unapproved fund is not deductible.

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Debits to profit and loss account

Premium of life insurance policy on the life of sole proprietor and his family members is not deductible while calculating business income. However, a deduction is available up to Rs. 1 lakh is available under section 80C.1/28/2012 Taxmann/Dr. Vinod K. Singhania 30

Debits to profit and loss accountThese details are relevant for ascertaining fringe benefit tax liability of an employer. However, individuals and Hindu undivided families are not employers and, consequently, fringe benefit tax liability is not applicable.

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Debits to profit and loss accountThese details are relevant for ascertaining the amount of disallowance under section 43B. Provisions for bad and doubtful debt is not a deductible expenditure for tax purposes.1/28/2012 Taxmann/Dr. Vinod K. Singhania 32

Tax provisions and appropriations

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No account caseWrite gross receipts

Write net profit1/28/2012

Write expenses

Write gross profit


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Other informationIf the accounts of the business or profession were not required to be audited under section 44AB, it is optional to fill these parts. Where the accounts of the business or profession were required to be audited under section 44AB, the details to be filled in these parts which are also required to be reported in the report of audit by the auditors, should broadly match with the details as given in the report of audit.

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Other informationTick on method of valuation of closing stock

If there is change in stock valuation method Tick on Yes otherwise No1/28/2012 Taxmann/Dr. Vinod K. Singhania 36

Other informationGenerally referred in case of construction contract business which is increased income due to the terms agreed in a contract for increase in charges due to price increase.

Capital receipt is a receipt which is not a revenue receipt and is not taxable.1/28/2012 Taxmann/Dr. Vinod K. Singhania 37

Other informationFully deductible

Deductible if payment is made by cheque It is not deductible1/28/2012 Taxmann/Dr. Vinod K. Singhania 38

Deductible on pro-rata basis

Other informationDeductible if loan is taken for business purposes and conditions of section 43B are satisfied Deductible if conditions of section 40A(9) are satisfied39

Deductible if it is written off in the books of account1/28/2012 Taxmann/Dr. Vinod K. Singhania

Other information

Not deductible

Deductible only in the case of a company

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Other information

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Other informationThis is not relevant in the case of an individual or a Hindu undivided family. Amount paid to a relative or interconnected concern in excess of fair market value of the goods or services supplied by the other party is not deducted under section 40A(2).1/28/2012 Taxmann/Dr. Vinod K. Singhania 42

Other informationIt covers amount paid to relatives or interconnected concerns 20% of such payment is not deductible under section 40A(3). Contribution to an unapproved gratuity fund is not deductible.1/28/2012 Taxmann/Dr. Vinod K. Singhania 43

Other information

If such amount is paid during the previous year, it is deductible during the current year.

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Other informationIf the amount covered by section 43B is not paid till the due date of submission of return of income, it is not allowed as deduction.

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Other information

Section 33AC is not applicable in the case of an individual or a Hindu undivided family.1/28/2012 Taxmann/Dr. Vinod K. Singhania 46

Quantitative detailsThe quantitative details may be furnished only in respect of principal items. Purchases are to be shown exclusive of taxes and the details of taxes paid on the purchases are to be indicated separately in the relevant rows. However, where it is not possible to segregate the details of the different taxes paid on the purchases, the same may be included and shown in the details of purchases.1/28/2012 Taxmann/Dr. Vinod K. Singhania 47

Total income

Please insert information in schedule first

It can be taken from Form No. 16 given by the employer. Alternatively it can be calculated as follows Salary Allowances Perquisites Gross salary Less : Deduction under section 16 Standard deduction [Sec. 16(i)] Entertainment allowance deduction [Sec. 16(ii)] Professional tax [Sec. 16(iii)] Income under the head Salaries1/28/2012 Taxmann/Dr. Vinod K. Singhania 48

XXX XXX XXX XXX

Nil XXX XXX XXX

Total incomeTake from Schedule HP. Enter nil if it is negative

Speculative transaction means a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled, otherwise than by the actual delivery or transfer of the commodity or scrips1/28/2012 Taxmann/Dr. Vinod K. Singhania

Take item A37 of Schedule BP, write Nil, if loss

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Total income

Short-term capital gain if securities transaction tax is paid. Take item A7 of Schedule-CG. Any other shortterm capital gain

Long-term capital gain take from Schedule CG1/28/2012 Taxmann/Dr. Vinod K. Singhania 50

Total incomeIncome from other sources not being from owning and maintaining race horses

Income from owning and maintaining race horses1/28/2012 Taxmann/Dr. Vinod K. Singhania 51

Total incomeTake total of items 2vii, 3vii and 4vii from Schedule CYLA

Take total of items 2vii, 3vii and 4vii from Schedule BFLA

Take total of item xifrom Schedule CFL1/28/2012 Taxmann/Dr. Vinod K. Singhania

Take item 4 from Schedule EI52

Computation of tax liability

Calculate tax on total income other than income chargeable at special ratesResident woman 0 1,35,000 1,35,000 1,50,000 1,50,000 2,50,000 Above 2,50,0001/28/2012

Resident senior citizen 0 1,85,000 1,85,000 2,50,000 Above 2,50,000

Any other 0 1,00,000 1,00,000 1,50,000 1,50,000 2,50,000 Above 2,50,000

Slab rate Nil 10% 20% 30%53


Take item 4 from Schedule STTR

Computation of tax liabilitySurcharge is applicable only if total income exceeds Rs. 10 lakh. Rate of surcharge is 10 per cent of income-tax. Education cess is 2 per cent of incometax and surcharge. Available if arrears of salary/gratuity, etc. are received

Double Taxation Relief when no agreement exist1/28/2012

Relief in respect of income which is taxable in India as well as outside India.Taxmann/Dr. Vinod K. Singhania

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Simple interest is levied when return is furnished after due date or no return has been furnished @ 1% per month or part of the month (even part of month will be taken as full month). Interest will be calculated as 1% per month or part of month of amount of tax [as determined on the regular assessment and assessment u/s 143(1)] Advance tax Tax deducted/Tax collected at source Relief u/s 90, 90A and 91.1/28/2012 Taxmann/Dr. Vinod K. Singhania 55


When interest is payable

Amount on which interest is payable

Rate of interest Simple interest @ 1% for every month or part of month - do -

Period for which interest is payable From April 1 of the AY to the date of determination of total income u/s 143(1) or where regular assessment is made to the date of such regular assessment - do -

When assessee who On assessed is liable to pay tax* advance tax, has failed to pay such tax When advance tax paid but it is less than 90% of assessed tax Assessed tax* Advance tax

*Assessed tax means tax on total income on the basis of regular assessment or assessment u/s 143(1) Tax deducted/collected at source1/28/2012 Taxmann/Dr. Vinod K. Singhania 56


Simple interest is levied when advance tax is not paid or under estimated instalments of advance tax @ 1% per month.When interest is payable If advance tax paid on or before September 15 is less than 30% of (a) (b) If advance tax paid on or before December15 is less than 60% of (a) (b) If advance tax paid on or before March 15 is less than 100% of (a) (b) Rate of interest Simple interest @ 1% per month Simple interest @ 1% per month Simple interest @ 1% per month Period of interest 3 months 3 months Amount on which interest is payable 30% (a b) c 60% (a b) d 100% (a b) e

a. Tax on total income declared in the return. b. Tax deducted/collected at source (double tax relief u/s 90, 90A and 91. c. Amount of advance tax paid on or before September 15 of the financial year immediately preceding the relevant AY. d. Amount of advance tax paid on or before December 15 of the financial year immediately preceding the relevant AY. e. Amount of advance tax paid on or before March 15 of the financial year immediately preceding the relevant AY. 1/28/2012 Taxmann/Dr. Vinod K. Singhania 57

Tax paidTake from Schedule-IT Take from Schedules TDS 1 and TDS 2

Take from Schedule TCS Take from Schedule IT1/28/2012 Taxmann/Dr. Vinod K. Singhania 58

Refund

Enter bank account number (essential in case of refund)

Magnetic Ink Character Recognition (MICR) may be taken from cheque leaf of the assessee1/28/2012 Taxmann/Dr. Vinod K. Singhania 59

Write your nameVerification

Write your fathers name

I, .son/daughter of.. solemnly declare that to the best of my knowledge and belief, the information given in the return thereto is correct and complete and that the amount of total income and other particulars shown therein are truly stated and are in accordance with the provisions of the Income-tax Act, 1961, in respect of income chargeable to income-tax for the previous year relevant to the assessment year 20___, ___.

Place

Date

Sign here

Write place Write assessment year1/28/2012 Taxmann/Dr. Vinod K. Singhania

Put signature here Write date60

If you are filing your return yourself then these columns are not to be filled up

TRP means, Tax Return Preparer who has been issued as per Tax Return Preparer Scheme, 2006, a Tax Return Preparer Certificate and a unique Identification Number to prepare return of income of Tax Payers

Write identification number of TRP, if return is prepared by TRP1/28/2012 Taxmann/Dr. Vinod K. Singhania

Write name of TRP, if return is prepared by TRP

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SalariesIn case there were more than one employer during the year, please give the details of the last employer. Further, in case, there were more than one employer simultaneously during the year, please furnish the details of the employer you have got more salary. Fill the details of salary as given in TDS certificate(s) (Form 16) issued by the employer(s). However, if the income has not been computed correctly in Form No. 16, please make the correct computation and fill the same in this item. Further, in case there were more than one employer during the year, please furnish in this item the details in respect of total salaries from various employers.

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Write name of employer

Salaries

Write 10 digit PAN of employer, please ensure that first five letters of PAN are alpha and next four letters are numeric and the last one is alpha. For, e.g., AMUPK0123N

Write address of employer1/28/2012

Write Town/ City

Write State name



Salaries

House rent allowance, education allowance, conveyance allowance, travelling allowance, etc. if a few conditions are satisfied.

Fixed medical allowance, conveyance allowance/travelling allowance use for personal purposes, telephone allowance, lunch allowance, etc.1/28/2012 Taxmann/Dr. Vinod K. Singhania 64

Salaries

Perquisites which are taxable rent-free/concessional accommodation, education facility, free-gas, electricity or water supply, domestic servants, interest-free loan, transfer of movable assets, use of movable assets. Gratuity, leave encashment, retrenchment compensation, leave travel concession, compensation for voluntary retirement, etc. to the extent chargeable to tax.

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House propertyIf there are three or less than three house properties, fill out the details for each properties in this Schedule. If there are more than two house properties, the details of remaining properties be filled in a separate sheet in the format of this Schedule. and attach this sheet with this return. The results of all the properties have to be filled in last row of this Schedule.

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Write address

House property

Write Town/ City Write State name

Tick if property is let out

Write 10 digit PAN of tenant

Write 6 digit PIN Code

Write name of tenant1/28/2012

Let out property Self-occupied propertyTaxmann/Dr. Vinod K. Singhania

Gross annual value Nil67

House property

Amount is deductible if tenancy is bona fide; defaulting tenant has vacated or steps have been taken to compel him to vacate property; defaulting tenant is not in occupational of any other property of assessee; assessee has taken all reasonable steps to institute legal proceedings for recovery of unpaid rent or satisfies Assessing Officer that legal proceedings would be useless.1/28/2012 Taxmann/Dr. Vinod K. Singhania 68

House property

Available only if property is let out.1/28/2012

Deduction is available only in respect of municipal taxes (not being penalty or interest) actually paid during the previous year. Not deductible if the house is self-occupied.69


House property

If capital is borrowed for construction, reconstruction, purchase, renewal or repair of house property, interest is deductible on accrual basis. No maximum ceiling in the case of let out property. In the case of selfoccupied property, amount deductible cannot exceed Rs. 1,50,000.1/28/2012 Taxmann/Dr. Vinod K. Singhania 70

Write address

House property

Write Town/ City Write State name

Tick if property is let out

Write name of tenant1/28/2012

Write 10 digit PAN of tenantTaxmann/Dr. Vinod K. Singhania


House property

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House propertyDeduction is available for unrealized rent in the case of a let-out property. If such a deduction has been taken in an earlier assessment year, and such unrealized rent is actually received in the assessment year in question, the unrealized rent so received is to be shown in this item.

Give back years extra rent received after claiming deduction @ 30% of such arrear rent received.1/28/2012 Taxmann/Dr. Vinod K. Singhania 73

Income from business and profession

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Income from business and professionDepreciation in respect of knowhow, patents, copyrights, trade marks, licences, franchises, etc.

Depreciation in respect of buildings, machinery, plant or furniture.1/28/2012 Taxmann/Dr. Vinod K. Singhania 75


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Income from business and professionTake item 6 of Schedule 10A Take item d of Schedule 10AA

Take item f of Schedule 10B Take item f of Schedule 10BA

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Item C of this schedule computes the total of profit or loss from business or profession (other than speculative business and profit or loss from speculative business) (item A37 + item B41). Please note that if balance in item B41 in respect of speculative business is a loss, same shall not be setoff against profit from non-speculative business. In such situation, only the figures of item A37 be entered in item C.1/28/2012 Taxmann/Dr. Vinod K. Singhania 79

Depreciation on plant and machinery

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Depreciation on plant and machineryAt the rate of 20% of actual cost.

Applicable only if block is empty on the last day of previous year or written down value is zero.1/28/2012 Taxmann/Dr. Vinod K. Singhania 81

Depreciation on other assets

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Depreciation on other assetsIn the case of building, furniture, fixtures, intangible assets, additional depreciation is not available.

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Summary of depreciation on assetsAny plant or machinery (not covered by other blocks) and motor cars (other than those used in a business of running them on hire) acquired or put to use on or after April 1, 1990. Buses, lorries and taxies used in the business of running them on hire, machinery used in semi-conductor industry, moulds used in rubber and plastic goods factories.1/28/2012 Taxmann/Dr. Vinod K. Singhania 84

Summary of depreciation on assetsAeroplanes - Besides, it includes commercial vehicle which is acquired after September 30, 1998 but before April 1, 1999 and it is put to use for any period prior to April 1, 1999, life saving medical equipment. Containers made of glass or plastic used as refills and plant and machinery which satisfy conditions of rule 5(2) and the following a. new commercial vehicle acquired during 2001 -02 and put to use before March 31,2002 for the purpose of business or profession; and b. machinery /plant used in weaving, processing and garment sector of textile industry which is purchased under Technology Upgradation Fund Scheme during April 1,2001 and March 31, 2004 and put to use up to March 31, 2004.1/28/2012 Taxmann/Dr. Vinod K. Singhania 85

Summary of depreciation on assetsComputers including computer software. Besides, it includes new commercial vehicles acquired in replacement of condemned vehicle of 15 years of age and put to use before April 1, 1999 (if acquired after September 30, 1998 but before April 1, 1999) or put to use before April 1, 2000 (if acquired during the financial year 1999-2000). It also includes books (other than annual publication) owned by a professional. It also includes gas cylinders ; plant used in field operations by mineral oil concerns; direct fire glass melting furnaces.

Energy saving devices; renewal energy devices; rollers in flour mills; sugar works and steel industry1/28/2012 Taxmann/Dr. Vinod K. Singhania 86

Summary of depreciation on assetsAir pollution control equipments; water pollution control equipments; solid waste control equipments, recycling and resource recovery systems; machinery acquired and installed on or after September 1, 2002 in a water supply project or water treatment system or for the purpose of providing infrastructure facility; wooden parts used in artificial silk manufacturing machinery ; cinematograph films, bulbs of studio lights ; wooden match frames ; some plants used in mines, quarries and salt works ; and books (being annual publications) owned by assessees carrying on a profession or books (may or may not be annual publications) carrying on business in running lending libraries.

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Summary of depreciation on assetsResidential buildings other than hotels and boarding houses. Office, factory, godowns or buildings which are not mainly used for residential purpose [it covers hotels and boarding houses. Buildings acquired on or after September 1, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under clause (i) of sub-section (4) of section 80-IA; Temporary erections such as wooden structures.1/28/2012 Taxmann/Dr. Vinod K. Singhania 88

Summary of depreciation on assetsRate of depreciation is 10% on any furniture/ fittings including electrical fittings Rate of depreciation is 25% on intangible assets (acquired after March 31, 1998) Know-how, patents, copyrights, trade-marks, licences, franchises and any other business or commercial rights of similar nature.

Rate of depreciation is 20% on oceangoing ships, vessels ordinarily operating on inland waters including speed boats.1/28/2012 Taxmann/Dr. Vinod K. Singhania

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Deemed capital gains on sale of depreciable assets

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Deduction under section 35Schedule ESR Sl No Expenditure of the nature referred to in section (1) i ii iii iv v vi vii1/28/2012

Deduction under section 35Amount, if any, debited to profit and loss account (2) Amount of deduction allowable (3)

Expenditure on scientific research

Amount of deduction in excess of the amount debited to profit and loss account (4) = (3) - (2)

35(1)(i) 35(1)(ii) 35(1)(iii) 35(1)(iv) 35(2AA) 35(2AB) Total

Revenue expenditure on scientific research related to the business of taxpayer. Amount of deduction is 100% of the expenditure. Contribution to an approved scientific research association, university, college, etc., for conducting scientific research. Amount of deduction is 125% of the amount of contribution.Taxmann/Dr. Vinod K. Singhania 93


Deduction under section 35Amount, if any, debited to profit and loss account (2) Amount of deduction allowable (3) Amount of deduction in excess of the amount debited to profit and loss account (4) = (3) - (2)


Contribution to an approved university, college, etc., for conducting scientific research in social sciences. Amount of deduction is 125% of the amount of contribution. Capital expenditure for conducting scientific research related to the business of the taxpayer. Amount of deduction is 100%. Depreciation is not available under section 32.Taxmann/Dr. Vinod K. Singhania 94


Deduction under section 35Amount, if any, debited to profit and loss account (2) Amount of deduction allowable (3) Amount of deduction in excess of the amount debited to profit and loss account (4) = (3) - (2)


Contribution to an approved National laboratory or university or IIT, etc., for conducting an approved scientific research. Amount of deduction is 125% of contribution. Deduction under section 35(2AB) is not available in the case of a taxpayer other than a company.Taxmann/Dr. Vinod K. Singhania 95

Capital gains

If period of holding is not more than 36 months (12 months in the case of shares, units, quoted debentures, etc.1/28/2012

If more than one short-term capital asset has been transferred, make the combined computation for all the assets. Similarly, make the combined computation for all the assets if more than one long-term capital asset has been transferred.96


Capital gainsApplicable in the case of nonresident if securities are purchased in foreign currency.

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Capital gains

Section 94(7) - It is applicable if shares/securities/units are purchased within 3 months before the record date and transferred within 3 months (9 months in the case of units) from the record date. Section 94(8) - It is applicable in the case of bonus stripping.

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Capital gains

Exemption is available only under sections 54B (agricultural land), 54D (compulsory acquisition of industrial land or building), 54G/54GA (transfer of an industrial undertaking from urban area to rural area/SEZ). Exemption under sections 54, 54EC, 54F is not available in the case of short-term capital gain.1/28/2012 Taxmann/Dr. Vinod K. Singhania 99

Capital gains

A capital asset was purchased to get exemption under sections 54B, 54D, 54G, 54GA in an earlier year. This asset is transferred in the current year before completion of 3 years.1/28/2012 Taxmann/Dr. Vinod K. Singhania 100

Capital gains

Equity shares or units of mutual fund/UTI are transferred within 12 months and securities transaction tax is applicable (i.e., transfer in a recognised stock exchange or transfer to the mutual fund).1/28/2012 Taxmann/Dr. Vinod K. Singhania 101

Capital gains

If period of holding is more than 36 months (12 months in the case of shares, units, quoted debentures, etc.

Applicable in the case of non-resident if securities are purchased in foreign currency.1/28/2012 Taxmann/Dr. Vinod K. Singhania 102

Capital gains

Cost of acquisition 519 (Cost Inflation Index for financial year 2006-07) Cost inflation index of the year in which the capital asset was first held by the assessee.

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Capital gains

Cost of improvement incurred on or after April 1, 1981 519 (Cost Inflation Index for financial year 2006-07) Cost inflation index of the year in which the improvement took place1/28/2012 Taxmann/Dr. Vinod K. Singhania 104

Capital gains

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Capital gainsA capital asset was purchased to get exemption under these sections in an earlier year. This asset is transferred in the current year before completion of 3 years.

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106

Other sourcesDividend from a domestic company is not chargeable to tax. Fixed deposit interest, saving bank account interest, post office interest, NSC interest, Indira Vikas Patra (IVP)/Kisan Vikas Patra interest, company deposit interest, etc.1/28/2012 Taxmann/Dr. Vinod K. Singhania 107

Other sources

Gross income from machinery, plant or furniture let on hire and also such income from building where its letting is inseparable from the letting of the said machinery, plant or furniture, if it is not chargeable to income-tax under the head Profits and gains of business or profession.1/28/2012 Taxmann/Dr. Vinod K. Singhania 108

Other sources

Gross winning is taxable. No deduction for expenses or losses

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109

Current year loss adjustment

Mention only positive incomes of the current year in column 1, headwise, in the relevant rows.

Mention total current years loss(es), if any, from house property, business or profession and other sources (other than losses from race horses) in the space above columns 2, 3 and 4 respectively. These losses are to be set off against income under other heads in accordance with the provisions of section 71. The amount set off against the income of respective heads has to be entered into in columns 2, 3 and 4, in the relevant rows.Taxmann/Dr. Vinod K. Singhania 110

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Current year loss adjustment

Mention the end-result of the above inter-head set-off(s) in column 5, headwise, in relevant rows.1/28/2012 Taxmann/Dr. Vinod K. Singhania 111

Current year loss adjustmentHouse property loss cannot be set off against salary income. Short-term capital loss can be set off only against shortterm or long-term capital gains.

Long-term capital loss can be set off only against longterm capital gains.1/28/2012 Taxmann/Dr. Vinod K. Singhania

112

Current year loss adjustmentTotal of loss set off out of columns 2, 3 and 4 have to be entered into row vii. The losses remaining for set off have to be entered in row viii. Losses cannot be set off against winnings from lotteries, races, etc.1/28/2012 Taxmann/Dr. Vinod K. Singhania 113

Brought forward loss adjustment

Mention only positive incomes of the current year (after set-off of loss in Schedule-CYLA in column 1, headwise in relevant rows.1/28/2012

The amount of brought forward losses which may be set off are to be entered in column 2 in respective rows.

The end result of the set off will be entered in column 5 in respective heads. The total of column 3 shall be entered in row viii which shall give the amount of gross total income.114


Brought forward loss adjustmentHouse property loss can be set off only against house property income.

Short-term capital loss can be set off only against shortterm or long-term capital gains.1/28/2012 Taxmann/Dr. Vinod K. Singhania

Long-term capital loss can be set off only against longterm capital gains.115

Brought forward loss adjustment

The total amount of brought forward losses set off during the year shall be entered in columns 2, 3 and 4 of row vii.1/28/2012 Taxmann/Dr. Vinod K. Singhania 116

Carry forward of loss

In this Schedule, the summary of losses carried from earlier years, set off during the year and to be carried forward for set off against income of future years is to be entered.

The losses under the head house property, profit and gains of business or profession short term capital loss and long term capital loss, losses from other sources (other than losses from race horses) are allowed to be carried forward for 8 years. However, loss from owning and maintaining race horses can be carried forward only for 4 assessment years.1/28/2012 Taxmann/Dr. Vinod K. Singhania 117

Deductions under section 10AIf there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

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118

Deductions under section 10AThe amount of deduction under this section for an undertaking shall be as per item 17 of Form No.56F being the report of audit under section 10A.

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119

Deductions under section 10A

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120

Deductions under section 10AAIf there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

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121

Deductions under section 10BIf there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

The amount of deduction under this section for an undertaking shall be as per item 17 of Form No.56G being the report of audit under section 10B.

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122

Deductions under section 10BAIf there are more than one undertaking entitled for deduction under this section, please enter the details of deduction for each undertaking separately.

The amount of deduction under this section for an undertaking shall be as per item 15 of Form No.56H being the report of audit under section 10BA.

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Details of donations under section 80G In this Schedule,

the details of donation given by you which are entitled for deduction under section 80G have to be filled.

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Details of donations under section 80G

Donation to National Defence Fund set up by the Central Government, Prime Ministers National Relief Fund, Prime Ministers Armenia Earthquake Relief Fund, Africa (Public Contributions - India) Fund, National Foundation for Communal Harmony, An approved university/ educational institution, etc.1/28/2012 Taxmann/Dr. Vinod K. Singhania 125


Donation to Jawaharlal Nehru Memorial Fund, Prime Ministers Drought Relief Fund, National Childrens Fund, Indira Gandhi Memorial Trust, Rajiv Gandhi Foundation, etc.1/28/2012 Taxmann/Dr. Vinod K. Singhania 126


Where the aggregate donations referred to in Part-C and donations referred to in sub-clauses (v), (vi), (via) and (vii) of clause (a) and in clauses (b) and (c)of section 80G(2) exceeds 10% of total income (before deduction under other provisions of Chapter VI-A), the excess amount shall be ignored for purpose of computing deduction under section 80G.1/28/2012 Taxmann/Dr. Vinod K. Singhania 127

Deduction under section 80-IAIf there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.

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128

Deduction under section 80-IA

The amount of deduction for an undertaking shall be as per item 30 of Form No.10CCB being the report of audit under section 80IA/ 80-IB/ 80-IC.1/28/2012 Taxmann/Dr. Vinod K. Singhania 129


100% of the profit from the undertaking is deductible for the first 10 years commencing from Initial assessment year. Initial assessment year means assessment year specified by assessee at his option to be initial year, but it does not fall beyond fifteenth assessment year starting from previous year in which enterprise begins operating and maintaining infrastructure facility.1/28/2012 Taxmann/Dr. Vinod K. Singhania 130


100% of the profit from the undertaking is deductible for the first 5 years commencing from Initial assessment year. 50% is deductible for the next 5 years.1/28/2012 Taxmann/Dr. Vinod K. Singhania 131


100% of the profit from the undertaking is deductible for the first 10 years commencing from Initial assessment year.1/28/2012 Taxmann/Dr. Vinod K. Singhania 132

Deduction under section 80-IBIf there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.

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133

Deduction under section 80-IBThe amount of deduction for an undertaking shall be as per item 30 of Form No.10CCB being the report of audit under section 80IA/ 80-IB/ 80-IC.

25% of the profit is deductible for first 10 years.1/28/2012 Taxmann/Dr. Vinod K. Singhania 134

Deduction under section 80-IB

100% of the profit from the undertaking is deductible for first 5 years. For next 5 years 25% is deductible.1/28/2012 Taxmann/Dr. Vinod K. Singhania 135

Deduction under section 80-IB50% of the profit is deductible for 5 years.

100% of the profit from the undertaking is deductible for the first 7 years.1/28/2012 Taxmann/Dr. Vinod K. Singhania

100% of profit from undertaking deductible for first 10 years.136

the the is the

Deduction under section 80-IB100% of the profit from the undertaking is deductible. 100% of the profit from the undertaking is deductible for first 5 years. For next 5 years 25% is deductible.

100% of the profit is deductible for first 5 years.1/28/2012 Taxmann/Dr. Vinod K. Singhania

137

Deduction under section 80-ICIf there are more than one undertaking entitled for deduction under any of these sections, please enter the details of deduction in relevant schedule for each undertaking separately.

100% of the profit from the undertaking is deductible for first 10 years.1/28/2012

The amount of deduction for an undertaking shall be as per item 30 of Form No.10CCB being the report of audit under section 80-IA/ 80-IB/ 80-IC.138


Deduction under section 80-IC

100% of the profit from the undertaking is deductible for first 5 years. For next 5 years 25% is deductible.

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139

Deduction under section 80-IC

100% of the profit from the undertaking is deductible for first 10 years.

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140

Total deductions80C - Deduction in respect of LIC premium, contribution to PF, amount paid under Home Loan Account Scheme of NHB, etc. 80CCC - Deduction in respect of contribution to Pension Fund.

80CCD - Deduction in respect of contribution to Pension Scheme.

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Total deductionsThe aggregate amount of deduction under sections 80C, 80CCC and 80CCD shall not, in any case exceed one lakh rupees.

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Total deductionsDeduction in respect of Medical Insurance Premium maximum amount of Rs. 10,000

Deduction in respect of maintenance of a handicap dependant who is with disability, maximum amount Rs. 50,000 (Rs. 75,000 where disability is over 80%).

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143

Total deductionsDeduction in respect of Medical Treatment, maximum amount Rs. 40,000 or Rs. 60,000

Deduction in respect of loan taken for higher education. Entire payment of interest is deductible for maximum of 8 years1/28/2012 Taxmann/Dr. Vinod K. Singhania 144

Total deductionsDeduction in respect of donations to certain funds, charitable institutions, etc. 100% or 50%

Deduction in respect of rent paid if a few conditions are satisfied.1/28/2012 Taxmann/Dr. Vinod K. Singhania 145

Total deductionsDeduction in respect of contributions given by any person to political parties.Take item n from Schedule 80-IB

Take item 5 of Schedule 80-IC

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146

Total deductionsRoyalty income of authors of literary, artistic or scientific work is deductible up to a maximum of Rs. 3 lakh. The taxpayer should obtain a certificate in Form No. 10CCD from the person from whom income is received.

Deduction in the case of the business of collecting and processing of biodegradable waste. The amount of deduction is 100% of the profit for first 5 years.1/28/2012 Taxmann/Dr. Vinod K. Singhania

147

Total deductionsRoyalty income on patent is deductible up to a maximum of Rs. 3 lakh. The taxpayer should obtain a certificate in Form No. 10CCE from the person from whom income is received.

Royalty on patents is deductible up to Rs. 3 lakh if a few conditions are satisfied.

Deduction in case of a person with disability1/28/2012 Taxmann/Dr. Vinod K. Singhania 148

Rebate under section 88ESection 88E provides for rebate of securities transaction tax (STT) paid on the transactions chargeable to STT which have been entered into by the assessee in the course of business activities.

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149

Rebate under section 88E

The rebate is restricted to the amount of income tax computed on average rate of tax on the profit arising from such transactions which is included in total income. Please note that no rebate is available in respect of STT paid on the transactions which give rise to long term/ short term capital gain. The rebate under this section be claimed as computed in Form No.10DB and Form No.10DC in accordance with rule 20AB. Take lower of item (2) and (3).1/28/2012 Taxmann/Dr. Vinod K. Singhania 150

Rebate under section 88E

Income of minor child (after exemption of Rs. 1,500). Income of a spouse/sons wife from an asset transferred directly or indirectly without consideration.1/28/2012 Taxmann/Dr. Vinod K. Singhania 151

Special rate

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152

Special rate

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153

Special rate

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154

Information regarding partnership firmsThis Schedule has to be filled for each firm in which you are partner. In case you are partner in more than 5 firms, a separate sheet may be enclosed giving the details in same format.

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155

Information regarding partnership firms

Furnish the amount of share in the profit of the firm as computed in accordance with the provisions of the Incometax Act in case of the firm. Such share is exempt from tax in hands of the partner.1/28/2012

The amount of capital balance (including the capital on which you are entitled for an interest) in the firm in which you are partner.156


Exempt incomeInterest income from UTI, Mutual Fund, etc.

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157

Exempt incomeDividend from domestic companies

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158

Exempt income

Long-term capital gain on transfer of equity shares/units of equity oriented mutual funds where securities transaction tax is applicable.1/28/2012 Taxmann/Dr. Vinod K. Singhania 159

Exempt income

Net agricultural income in India.1/28/2012 Taxmann/Dr. Vinod K. Singhania 160

Exempt income

Other incomes which are exempt under section 10, i.e., exempted portion of house rent allowance, gratuity, pension, transport allowance, education allowance, etc.1/28/2012 Taxmann/Dr. Vinod K. Singhania 161

Other information

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Tax paymentsThese details will be taken from the counter foil of the Challan 280.

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163

TDS on salaryThese details can be taken from Form 16.

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164

TDS on other incomeThese details can be taken from Form 16A.

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TCS on incomeThese details can be taken from Form 27D.

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