Skill development questions :

[Link] a chart showing rates of depreciation for different assets

Depreciation Rate
Asset Category Examples
(% p.a.)
Buildings (Residential) Houses, apartments 5%
Buildings (Commercial) Offices, shops 10%
Tables, chairs,
Furniture & Fixtures 10%
cabinets
Office Equipment Photocopiers, printers 15%
Desktops, laptops,
Computers & Software 40%
software
Motor Cars Passenger vehicles 15%
Commercial Vehicles Trucks, buses, taxis 30%
Manufacturing
Plant & Machinery 15%
equipment
Electrical Installations Wiring, generators 10%
Intangible Assets Patents, copyrights 25%

[Link] the Eligible Remuneration to working partners as per Income tax rules with imaginary
figures

Under the current Section 40(b) rules applicable from FY 2025-26 (AY 2026-27), the limit has been revised. The
maximum allowable remuneration to working partners is:

• On the first ₹6,00,000 of book profit or loss: ₹3,00,000 or 90% of book profit, whichever is higher.

• On the balance book profit: 60% of the balance.

Book Profit = ₹6,00,000

Particulars Calculation Amount (₹)

90% of first ₹6,00,000 ₹6,00,000 × 90% 5,40,000

Minimum prescribed amount 3,00,000 3,00,000

Eligible Remuneration (Higher of above) 5,40,000

[Link] for Calculation of Book Profit (Section 40(b) of the Income Tax Act)

Book Profit is calculated to determine the maximum remuneration allowable to working partners in a
partnership firm.

Step 1: Ascertain Net Profit

Start with the Net Profit as per the Profit and Loss Account.

Step 2: Add Back Appropriations and Inadmissible Expenses

Add the following items if they have been debited to the Profit and Loss Account:

• Remuneration (salary, bonus, commission, etc.) paid to partners

• Interest on capital paid to partners

• Income tax paid

• Penalties and fines not allowable under the Income Tax Act

• Other inadmissible expenses

Step 3: Deduct Admissible Adjustments

Deduct:

• Incomes credited to the Profit and Loss Account but taxable under other heads

• Exempt incomes

• Other admissible deductions as per the Income Tax Act

[Link] a chart showing rates of TDS for any 6 different incomes.

Sl.
Nature of Income Relevant Section TDS Rate
No.
As per applicable
1 Salary Income Sec. 192 income tax slab
rates
2 Interest on Securities Sec. 193 10%
3 Bank Interest (Fixed Deposits, etc.) Sec. 194A 10%
4 Commission or Brokerage Sec. 194H 2%
5 Professional or Technical Fees Sec. 194J 10%

6 Rent of Land, Building or Furniture Sec. 194I 10%

[Link] out the different forms used for filing IT returns

Form Applicable To Purpose

Resident individuals having income up to ₹50
ITR-1 (Sahaj) lakh from salary, one house property, and other Simplified return for salaried taxpayers
sources
For taxpayers with capital gains,
Individuals and HUFs not having income from
ITR-2 multiple house properties, foreign
business or profession
assets, etc.
Individuals and HUFs having income from For proprietors, professionals, and
ITR-3
business or profession business owners
ITR-4 Individuals, HUFs, and Firms (other than LLPs) Simplified return under Sections
(Sugam) opting for presumptive taxation 44AD, 44ADA, and 44AE
 Partnership Firms, LLPs, AOPs, BOIs, and other
ITR-5 Return for non-company entities
entities
Companies other than those claiming exemption
ITR-6 Return for companies
under Section 11
Trusts, charitable institutions, political parties, Return for entities required to file
ITR-7
educational institutions, etc. under Sections 139(4A) to 139(4F)

Advance Tax Problems

Meaning of Advance Tax

Advance Tax refers to the income tax paid in installments during the same financial year in which the income is
earned, instead of paying it as a lump sum at the end of the year.

It is also called “Pay-as-you-earn tax” because the tax is paid along with earning income.

Simple Definition

Advance tax is the tax payable in advance on estimated income of the current year, if the total tax liability
exceeds ₹10,000.

Who has to pay Advance Tax?

It is applicable to:

• Salaried persons (if tax after TDS > ₹10,000)

• Businessmen

• Professionals (doctors, CA, lawyers, etc.)

• Freelancers and self-employed persons

• Capital gains earners (in certain cases)

standard advance tax installment schedule for individuals

15 June: 15%

15 September: 45% (cumulative)

15 December: 75% (cumulative)

15 March: 100% (cumulative)

[Link]. B’s total tax liability for FY 2025–26 is ₹48,000.

Required:
Calculate the advance tax payable in:
 1. On or before 15 June

2. On or before 15 September

3. On or before 15 December

4. On or before 15 March

Ans: Step-wise calculation

On or before 15 June (15%)

48,000×15%=7,200

On or before 15 September (45% cumulative)

48,000×45%=21,600

Already paid: ₹7,200

21,600−7,200=14,400

On or before 15 December (75% cumulative)

48,000×75%=36,000

Already paid: ₹21,600

36,000−21,600=14,400

On or before 15 March (100% cumulative)

48,000×100%=48,000

Already paid: ₹36,000

48,000−36,000=12,000

Final Answer Table

Due Date Cumulative % Amount Payable (₹)

15 June 15% 7,200

15 September 45% 14,400

15 December 75% 14,400

15 March 100% 12,000

Unit-5 Tax Under E- Environment and ITR filing

Filing of Income Tax Returns (ITR) & E-Filing
Meaning of ITR
Income Tax Return (ITR) is a form in which a taxpayer declares details of income earned, tax
paid, deductions claimed, and tax payable/refund due to the Income Tax Department for a
financial year.

Purpose of Filing ITR

• To report total income earned

• To calculate tax liability

• To claim refund (if excess tax is paid)

• To maintain legal financial record

• To carry forward losses

Types of Income Tax Returns (ITR Forms)

ITR-1 (Sahaj)
For resident individuals

Income up to ₹50 lakh

Salary income
One house property

Other income (interest, etc.)

Not for business income or capital gains

ITR-2

Individuals and HUFs

No business/professional income

Income from:

Salary

Multiple house properties

Capital gains

Foreign assets/income

ITR-3

Individuals & HUFs

Having business or profession income
Applicable for:

Traders

Professionals

Proprietorship businesses
ITR-4 (Sugam)

For presumptive income scheme (44AD, 44ADA, 44AE)

Small businesses & professionals

Income limit up to ₹50 lakh (business) / ₹75 lakh (profession)

ITR-5

Partnership firms, LLPs, AOPs, BOIs

ITR-6
Companies (except those claiming exemption under section 11)
ITR-7

Trusts, NGOs, political parties, institutions

Benefits of Filing ITR

Financial Benefits

• Claim income tax refund

• Helps in loan approval (home, car, education)
• Proof of income for financial transactions
Legal Benefits

• Required by law if income exceeds threshold

• Avoids penalties and interest

• Helps maintain compliance with tax laws

Business & Professional Benefits

• Helps in business credibility

• Required for government tenders

• Required for visa applications

Other Benefits
 • Easy visa processing (US, UK, etc.)

• Carry forward of losses

• Financial record for future reference

Documents Required for Filing ITR

Personal Documents

• PAN Card
• Aadhaar Card

• Bank account details

Income Documents

• Form 16 (salary certificate)

• Form 16A (TDS on other income)

• Salary slips

• Interest certificates (banks, post office)

Investment & Deduction Proofs

• LIC receipts

• PPF/EPF statements

• ELSS mutual funds

• Tuition fee receipts

• Home loan interest certificate

Capital Gains Documents

• Sale/purchase deeds

• Mutual fund statements

• Share transaction statements

Other Documents

• Form 26AS (tax credit statement)

• AIS (Annual Information Statement)

• Rent receipts (for HRA claim)

E-Filing of Income Tax Returns

Meaning of E-Filing
E-filing means electronic filing of Income Tax Returns through the internet using the Income
Tax Department portal.

Features of E-Filing

• Paperless process

• Faster processing of returns

• Easy refund tracking

• Available 24×7
• Secure and verified using OTP/Digital Signature

Steps in E-Filing
1. Register on income tax portal

2. Login using PAN/Aadhaar

3. Select ITR form

4. Enter income and deduction details

5. Verify tax calculation

6. Submit return

7. E-verify using:

o Aadhaar OTP

o Net banking
o Digital signature

Benefits of E-Filing

• Saves time and cost

• Quick refund processing

• Easy correction of errors

• No physical paperwork

• Immediate acknowledgement (ITR-V)

Different Forms Used in E-Filing

1. Form 16

Salary TDS certificate from employer

2. Form 16A

TDS on income other than salary

3. Form 26AS

Consolidated tax credit statement

4. AIS (Annual Information Statement)

Complete financial transactions record

5. ITR Forms (1 to 7)