1 Basics of Income Tax

Bachooooon,
Padho To Hadd Kar Do Warna Programme Raddh Krdo, Hence we must have
Knowledge of Basics of Tax

History of Income Tax

Chanakaya : we should start leving Tax
Raja : Tax what is this ? and what are its benefits?
Chanakaya : Just as sun draw moisture from Earth and give it back as a rain,we
will Collect the Tax and use it for Administration and Services for
our people

Income Tax During British Rule

1860 : Sir James Wilson Introduce Tax to meet the loss sustained in the War of 1857
1886 : A Separate Income Tax was passed
1922 : The Income Tax Act was Amended and imposed
1947 : India got Independence.
1961 : Income Tax Act was brought in its present form
1962 : Income Tax Rules was notified

298 Sections
Extent of Income-tax Act V LEARN CLASSES

1. The Income-tax Act, 1961 came into force with effect from 1/4/1962. INCOME TAX
ACT 1961
2. It has XXIII chapters and 298 sections in all.
3. Income-tax Act extends to the whole of India. CA CS VIJAY SARDA

14 Schedules

Annexure
Meaning & Scope of Income Tax

Section Notification Circular Proviso Rules

1. Division of an Act 1. Issued by CBDT 1. Issued by CBDT 1. Exception to Section 1. For
in a systematic 2. Issued for communica- 2. For clarification of 2. Generally given in the implementation
manner. tion for any change in doubt in Law or Rules Act as “ provided that” Of Act
2. Sec(22)(1)(v) this Law or Rules 3. All Circular 6m before 2. For carrying out
is to be read as 3. All notification 6m exams are applicable Purposes of the
Sec.2 Sub-sec 22 before exams are Act
clause 1 & Sub- Applicable 3. Sec 295 - CBDT
clause 5. Makes the Rule

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[Link] Basic 1.1 CA Vijay Sarda 8956651954
How Law Works

Law makers
Ministry of Finance in
Consultation with ministry
of law and Justice draft the Law Law Interpreters
Finance bill Implementers
Courts & tribunal
Legislative Process Supreme Can accept the case when
Parliament approves the
Green Discussion/
Court- HC grants certificate of
paper Consultation documents
law then the power is
Fitness [Article134-A]
Governments delegated to another body APEX or
White
paper Proposed new law (CBDT/CBIC)to create COURT Filling an SPL
Bill Debated and approved working law here the “Rules [article 136]
in both houses of
parliament
are made & implemented”In High Original jurisdiction in
other words it can also be most of the cases Writ
President assent is Court
Approval taken, once approval is said as subordinate legislation petition can be filled
received it becomes an Last Authority for
Tribunal Interpretation of Fact
Act from the date
notified.

Sec 298 Power to remove Difficulties

If any difficulty arises in giving effect to the provisions of this Act the CG may, by general or special order, do
Anything not Inconsistent with such provisions which appears to it to be necessary or expedient for the
purpose of Removing the difficulty.

Constitutional Validity of Act

Article 265 : N o t a x s h a l l b e l ev i e d o r c o l l e c t e d e xc e p t by a u t h o r i t y o f l aw.

Tax is of Two Types There must be Law(Act)

Impose 1) Collection Article 245 & 123
1) Direct before Levy or collection
2) Recovery
2) Indirect of tax

Article 245 : Parliament may make laws for the whole or any part of the territory of India, & the Legislature
of a State may Make laws for the whole or any part of the State

Article 123 : President has power to promulgate Ordinances during recess of Parliament

Article 270 : All the taxes & duties except specified shall be levied by CG & distributed between Union &
State Government in the manner specified by President or through recommendation of finance commission

Article 271 : Parliament may at any time increase any of the duties or taxes referred In those articles by a
surcharge for purposes of the Union and the whole proceeds of any such surcharge shall Form part the
Consolidated Fund India

Article 246: The powers has been divided into -

i) Union List: Covers Entry no 82 “ taxes on income other than on Agriculture”
ii) State List: Entry no 46 “Taxes on Agricultural income
iii) Co current List: GST is brought through Concurrent List

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[Link] Basic 1.2 CA Vijay Sarda 8956651954
Meaning of Various Term
Basis
Comparison Tax Duty
Meaning Tax is a financial obligation Duty is fees payable to Government
Levied On Income, Services, Sales etc. Goods & Financial Transactions
Types Direct Tax & Indirect Tax Custom Duty & Excise duty
Scope Wide Narrow
Authority to Impose Central or State Government Central Government

Tax Surcharge Cess

Amount collected by 1. It is an additional Levy 1. It is an additional Levy
Government to Provide 2. Levied as per article 271 2. It is collected only for Specific purpose &
Various facility 3. It is collected if Income can be Utilized only for that Purpose.
Exceed prescribe limit. 3. It is collected as a % of Tax (after
4. It is collected as a % of Surcharge or Rebate)
Tax 4. It is now called as Health & Education
Cess (HEC)

Type of Tax Direct Indirect

1. It is Levied on Income & Activities 1. It is Levied on product or Service
conducted 2. The burden of Tax shifted of Indirect Tax
2. The burden of Tax cannot be shifted 3. It is paid by one person but he recovers the same
in case of Direct Tax from another person i.e. person who actually bear
3. It is paid Directly by person concerned the Tax Ultimate consumer.
4. Example Income Tax, Wealth Tax etc. 4. Example GST, Excise duty custom duty sale Tax

?
service Tax

Budget & Annual Amendment

Final Budget Every Year

Interim Budget In the Year of Election

Budget is prepared as per
which Act ?
Contains change in DT & IDT

Direct Tax Amendments Indirect Tax Amendments

Effective from 1st day of Next Effective from Midnight, Unless Specified Otherwise
Year, Unless Specified Otherwise [Now after GST, amendment are expected after every GST
Council Meet]

1st Feb Budget 1st April 31st March 1st April 31st March

Introduce Budget Budget started Implementing Tax is Payable in the following

Year(AY)
}

FM Income earned During year (PY)

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[Link] Basic 1.3 CA Vijay Sarda 8956651954
Sec 1 Short Title, Extent & Commencement
This Act may be called the Income-tax Act, 1961
It Extends to the whole of India
It shall come into force on the 1st day of April, 1962 :
> Total No. of Chapter in Act, X XIII
> Total Sec. in Act, 298
> Total Schedule in Act, Fourteen.

Sec 2(25A) India (Simplified Definition)

India means the territory of India as referred to in Article 1 of Constitution,its territorial waters, seabed
& subsoil underlying waters, continental shelf, exclusive economic zone or any other maritime zone and
the air space above its territory & territorial waters.

Sec 4 Charge Of Income Tax

> Income Tax is Payable For Any Assessment Year
> At the rate specified in Annual Finance Act
> In respect of total income of any Person in the previous year.

Sec 2(31) Person

1. An Individual
2. A Hindu Undivided Family [HUF] [Dayabhaga or Mitakshara]
3. A Firm Including LLP [Except for Sec 44AD/44ADA]
4. A Company [Domestic & Foreign]
5. Association of Person / Body of Individuals. [AOP/BOI]
6. A Local Authority
7. Every Artificial juridical person not falling within any of the preceding sub-Clauses. [AJP]

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Sec 2(7) Assessee
"Assessee" means a person by whom any tax or any other sum of money is payable under this Act, and
includes every person in respect of whom any proceeding under this Act has been taken for the assessment
of his income or assessment of fringe benefits or of the income of any other person in respect of which he
is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to
him or to such other person.
a) Every person who is deemed to be an assessee under any provision of this Act
b) Every person who is deemed to be an assessee in default under any provision of this Act.

Assessment & Previous Year

Sec 3 Previous Year Sec 2(9) Assessment Year
PY is a year in which income is earned. It AY is a year in which income is charged to
is same as FY. This uniform PY has to be Tax or year in which IT is payable. It is a
Followed for all source of income. Period of 12 months commencing on 1st
April every year.

PY = 1|4|20_________ to 31|3|20 ________

AY = _________
# In case newly started business P Y will begin with the date of commencement and ending of 31st March
of that year however next year shall always be a period of 12m.
Suppose Buisness started on 1|8|20______ Then AY______ & PY_______
Genral Rule: Income of previous year is taxable in Assessment year
For example : income earned in PY __________ is taxable in AY___________

Exception to above rule: [IMP] (Dealt Seperately)

1. Shipping Business of Non-Resident [Sec 172]
2. Persons leaving India [Sec 174]
3. AOP or BOI or Artificial Juridical Person formed for a particular event or purpose [Sec 174A]
4. Persons likely to transfer property to avoid tax [Sec 175]
5. Discontinued business [Sec 176]

In these cases income is taxable in PY year in which it is earned [PY=AY]

Section 80B(5): Gross Total Income

u/s 14, income of a person is computed under following five heads after Adjusting for Clubbing & Setoff.
5 Heads Includes -
a) Income from Salary b) Income from House Property
c) Income from Business of Profession d) Capital Gains
e) Income from other Sources

Sec 2(45) Total Income

"Total income" means the total amount of income referred to in sec 5, computed in the manner laid down in
this Act
Simplified Explanation -
Gross total Income (-) deduction under chapter VI-A. This income is also called taxable income on which tax
has to be imposed.

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Deductions & Exemptions
Deduction Exemptions
1. It is partial Exemption 1. It is 100% Exempt
2. Allowed if Condition is 2. If Income Is Exempt then it
Satisfied Is not Included in Total
3. It is available in 2 ways Income.
A. Head Wise 3. Exemption is Covered in
B From Gross Total Income Section 10 & 54 Series.

Sec 2(24) Income

1. Profits or gains of business / profession / Dividend / CG
2. Voluntary Contribution received
3. Value of perquisite or profit in lieu of salary taxable u/s 17
4. Export incentives, like Duty Drawback, Cash Compensatory Support, Sale of licences or Government
Assistance etc.
5. Income of Partner from a Firm
6. Winnings from lotteries, crossword puzzles other casual income.
7. Deemed income u/s 41 or 59
8. Sums received by an assessee from his employees towards welfare fund contributions such as PF/SPF
9. Amount received under Keyman Insurance Policy incl bonus
[Link] received under agreement for Intangible
[Link] covered u/s 56
[Link] received under failed negotiation on transfer of CA
[Link] received income in connection with termination or modification of any contract relating to Business
[Link] of Inventory as on date of which converted into CA
[Link] Profits [Reserves] of Amalgamated co to also incl. Reserve of Amalgamating co on date
of amalgamation
[Link] by Resident to NR of any money situated in India after 05.07.19 shall be taxable in India

Rates of Income Tax

Normal Rates :- These are specified by the relevant Finance Act
Special Rates :- These are specified by Income Tax

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[Link] Basic 1.6 CA Vijay Sarda 8956651954
 Old Slab Rate
Normal Rates (Slab Rates)

1. Resident Individual below 60 Senior citizens:

2. NR irrespective of Age Individual (Resident) 60 yrs or
3. HUF, AOP/BOI, AJP more but not more than 80 years Super Senior citizens: Individual
(Resident) 80 years / more
Rates Shortcut
Total Income Total Income Rates % Shortcut Total Income
% Rates %
Upto ₹ 250000 Nil - Upto ₹ 3,00,000 Nil -
₹ 3,00,001 to 5,00,000 Upto ₹ 5,00,000 Nil -
₹ 2,50,001 to 5,00,000 5% ₹ 12,500 5% ₹ 10,000
₹ 5,00,001 to 10,00,000 ₹ 5,00,001 to 10,00,000 20% ₹ 1,00,000
₹ 5,00,001 to 10,00,000 20% ₹ 1,12,500 20% ₹ 1,10,000
Above ₹ 10L 30% - Above ₹ 10L 30% -
Above ₹ 10L 30% -

# From AY 21-22, Individual & HUF tax payers have an option to opt for taxation under newly inserted
Sec 115BAC
# CBDT Clarification: Any resident Individual whose 60th/80th birthday falls on 1st April 2024 shall be
treated as having completed the age of 60/80 years on 31st March 2024 i.e PY 2023-24 (AY 2024-25) and
hence would be eligible for the higher basic exemption limit of ₹ 3,00,000 & 5,00,000.
[Case: Prabhu Dayal Sesma vs. State of Rajasthan]

Additional points to tax Calculations:

1. Rebate u/s 87A
a) Assessee is Individual
b) He is Resident in India
c) Where total income(Normal + Special excluding Exempt Income) does not exceed ₹5 lakh
Rebate= ₹12500 or 100% of tax payable ,whichever is lower.
Rebate not available for tax computed u/s 112A
2. HEC(Cess) is applicable @ 4% on income taxable Payable
3. Rounding Off

Sec.288A Round off of Total Income R/o to nearest multiple of ₹10

Sec.288B Round off of Total Tax R/o to nearest multiple of ₹10

If the last figure in that Amount is five or more, the amount shall be increased to the next higher amount
which is a multiple of ten and if the last Figure is less than five, the amount shall be reduced to next lower
amount which is a multiple of Ten. Rule of 5 is applicable.
4. Income Chargeable at Special rate

Income Rates
STCG referred to in Sec 111A (Securities) 15%

LTCG referred to in Sec 112 20%

LTCG u/s 112 A Beyond ₹1 Lakh 10%
Casual income (e.g. Lottery. Horse winnings, etc.) (Sec 115 BB) 30%
Sec 115 BBJ Net winnings from online games [FA 2023]

Unexplained Cash/Expenses/Investment -115 BBE 60%

Maximum Marginal Rate 42.744%
[30% + 37% + 4%]

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[Link] Basic 1.7 CA Vijay Sarda 8956651954
5. Special Adjustment for Resident :
If Assessee (Resident) has special Income i.e. LTCG (112 / 112A) / STCG (111 /111A) (Not casual Income)
& BEL is not Exhausted then such special income shall be first used to cover up basic exemption limit and
balance, if any, shall be chargeable to special rate of Tax.

6. Surcharge : I / HUF / AOP / BOI / AJP as:

U/S 111A, 112
Income 112A, Dividend Other
Income
1) Ti[including Income u/s 111A , 112 , 112A & dividend income does not Nil Nil
Exceed 50L
2) TI [including Income u/s 111A,112,112A& dividend income exceed 50L 10% 10%
but does not exceed 1cr.]
3) TI [including Income u/s 111A,112,112A & dividend income exceed 1cr 15% 15%
but does not exceed 2cr.]
4) TI [excluding Income u/s 111A,112,112A & dividend income exceed 2cr 15% 25%
but does not exceed 5cr.]
5) TI [excluding Income u/s 111A,112,112A & dividend income exceed 5cr] 15% 37%
6) TI [including Income u/s 111A,112,112A & dividend income exceed 2cr 15% 15%
but not covered by situation 4 & 5]

Note : If surcharge is applicable on taxable Income of assessee as per specified limits, maximum surcharge
applicable on Tax on Dividend Income is up to 15% of Tax Amount. (i.e. if your income is in slab limit of
surcharge of 25%, tax on dividend income will be having capping on surcharge on tax @ 15% on tax amount
proportionate to total tax with income.

Tax rate for firm /LLP/Local Authorities

1) Tax rate 30%

2) Surcharge: Income upto 1cr No surcharge
Exceed 1cr 12%

3) HEC 4%

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Tax rate for Companies

General Rates for Companies

Domestic Foreign Co

Income Tax rate

T/O in P.Y. 21-22 Upto 1cr TI x 40% + 4% HEC
Other Co
does not exceed 400cr 1cr - 10cr TI x 40% + 2% HEC
+ 4% Surcharge HEC
Income Tax rate above 10cr TI x 40% + 5% HEC
Income Tax rate Upto 1cr TI x 30% + 4% HEC + 4% Surcharge HEC
Upto 1cr TI x 25% + 4% HEC
1cr - 10cr TI x 30% + 7% HEC + 4%
1cr - 10cr TI x 25% + 7% HEC + 4% Surcharge HEC
Surcharge HEC Above 10cr TI x 30% + 12% HEC + 4%
above 10cr TI x 25% + 12% HEC + 4% Surcharge HEC
Surcharge HEC

Marginal Relief
A) In case of an Local Authority & Firm, where TI < ₹1cr, aggregate of income tax & surcharge shall
be restricted to: (Tax on ₹1cr) + (Total Income - ₹1cr)

B) In case of an Individual & HUF

Total Income Income Tax & Surcharge Restricted to
₹50L </= ₹1cr (Tax on ₹50 Lakh) + (Total Income - ₹50 lakhs)
₹1cr </= ₹2cr (Tax on ₹1crore with surch @ 10%) + (Total Income - ₹1 lakhs)
₹2cr </= ₹5cr (Tax on ₹2crore with surch @ 15%) + (Total Income - ₹2 lakhs)
Exceeds ₹5cr (Tax on ₹5crore with surch @ 25%) + (Total Income - ₹5 lakhs)

C) In case of a Domestic / Foreign Company, where TI ₹1cr </= ₹10cr, aggregate of income tax &
surcharge shall be restricted to: (Tax on ₹1cr) + (Total Income - ₹1cr)

D) In case of a Domestic Company, where TI > ₹10cr, aggregate of income tax & surcharge shall be
restricted to: (Tax on ₹10cr with surch of 7%) + (Total Income - ₹10cr)

E) In case of a Foreign Company, where TI > ₹10cr, aggregate of income tax & surcharge shall be
restricted to: (Tax on ₹10cr with surch of 2%) + (Total Income - ₹10cr)

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For Other Assessee or Persons - Surcharge
Applicable Surcharge
Rate Rate of
Assessee of Tax 1 Cr < TI
TI < 1 Cr TI > 10 Cr HEC
< 10Cr
Domestic Co turnover not exceed 25% - 7% 12% 4%
not exceed 400 crore in PY 20-21
Other Companies 30% - 7% 12% 4%
Foreign Company 40% - 2% 5% 4%
Firm & LLP 30% - 12% 12% 4%
Local Authority 30% - 12% 12%

Co Operative Society
For 1st ₹10,000 10% - - - 4%
For next ₹10,000 20% - - - 4%
For the balance 30% - 7% 12% 4%

> Companies may opt for alternative taxation scheme u/s 115BAA / 115BAB
> Companies are further subject to MAT provisions whereas, other than company assessee are subject to
AMT (Discussed in detail later)
> Co-operative Society may opt for alternative taxation in Sec 115BAD
An AOP consisting of only companies as members :
(a) In case of an AOP consisting of only companies as members, whose total income > ₹ 50 lakhs but is
≤ ₹ 1 crore Where the total income exceeds ₹ 50 lakhs but does not exceed ₹ 1 crore, surcharge is
payable at the rate of 10%
(b) In case of an AOP consisting of only companies as members, whose total income > ₹ 1 crore
Where the total income exceeds ₹ 1 crore, surcharge is payable at the rate of 15%
# In case of AOP (consisting of only companies as its member), the maximum of rate of surcharge is 15%
for AY 2023 & 24

Examples on Surcharge

Sr. No. Normal Income Special Income Surcharge on Special Surcharge on

For example Total Income Income For example Normal Income
111A/112/112A/ 111A/112/112A/
Dividend income Dividend income
1. 25L 24L 49L NIL NIL
2. 30L 32L 62L 10% 10%
3. 48L 62L 110L 15% 15%
4. 40L 300L 340L 15% 15%
5. 40L 700L 740L 15% 15%
6. 160L 280L 430L 15% 15%
7. 330L 100L 430L 15% 25%
8. 630L 100L 730L 15% 37%

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 ALTERNATIVE TAX
SCHEME
Alternative Tax Scheme - Default Scheme (w.e.f A.Y. 2024-25) [FA 2023]
Unless otherwise Specified w.e.f A.Y. 2024-25 tax shall be calculated as per below sections unless it is
specifically mentioned that calcualte as per old scheme
New Scheme :- Sec 115 BAC I/HUF AOP/BOI/AJP (Other than [Link]) - R/NR
Sec 115 BAA Any Domestic Company
Sec 115 BAB Any Domestic Manufacturing Company
Sec 115 BAD Any [Link] Society - R
Sec 115 BAE A.Y. 24-25 [Link] Society engaged in MNF.

# Firm/LLP/ Local Autority / Foreign Co - No Alternative Tax Scheme available as of now

Sec 115BAC Tax Incentive for Individual & HUF

For Individual /HUF / AOP/ BOI/ AJP have an option to opt for taxation in sec 115BAC of the Act.
Condition : 1 Restriction on claiming deduction or exemption

Following Deduction can’t be Taken Without Following Deduction can be Taken

exemption/ deduction under the foll provisions: Salary:
Salary: 1. Transport Allowance granted to a divyang
1. Leave travel concession sec10(5) employee
2. House rent allowance sec10(13A) 2. Conveyance Allowance
3. Entertainment allowance & 3. Any Allowance granted to meet the cost of
employment/professional tax u/s 16; travel on tour or on transfer
4. Free food & beverage through vouchers provided to EE 4. Daily Allowance to meet ordinary daily
5. Some of the allowance mentioned in sec10(14) charges incurred by an employee on absence
HP: from his normal place of duty
1. Interest u/s 24 in respect of self-occupied or vacant 5. Standard deduction u/s 16(ia)
property referred to in Sec 23(2). (Loss from house Deduction:
property for rented house not be allowed to be set off 1. Deductions Sec 80CCD (employer
under any other head & would be allowed to be c/f contribution on account of employee in
as per extant law) notified pension scheme) & Sec 80JJAA
PGBP: (new employment), 80CCH (CG
1. Additional deprecation u/s 32(1)(iia); contribution towards Agnipath scheme
2. Deductions u/s 32AD, 33AB, 33ABA PGBP:
3. Various deduction for donation for or expenditure on 1. Depreciation is allowed.
scientific research contained in sub-clause (ii) /(iia)/(iii)
of sub-sec (1) /sub-sec (2AA) of sec 35;
4. Deduction u/s 35AD or sec 35CCC;
IFOS:
1. Deduction from family pension u/s 57(iia);
Deduction:
1. Any deduction under chapter VIA
Exemptions:
1. Allowances to MPs/MLAs sec 10(17)
2. Allowance for income of minor sec10(32)
3. Exemption for SEZ unit contained in section 10AA

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[Link] Basic 1.11 CA Vijay Sarda 8956651954
Condition 2: Without Set off of any loss c/f or depreciation from an earlier AY, if the same is
attributable to any of the deductions referred in point A. Also, without setting off any loss under the
head House Property with any other head of income. Both the losses mentioned cannot be c/f

Condition 3: Exercise the option:

1. I/ HUF/ AOP/ BOI/ AJP has no Business Income: Along with the return of income be furnished
u/s 139(1);
2. Has Business Income : On or before the due date specified u/s 139(1) for furnishing ROI & such option
once exercised shall apply to subsequent AYs
> The Option can be withdrawn only once where it was exercised by the Assessee having business
income for a PY other than the year in which it exercised & thereafter, the Assessee shall never be
elgible to exercise the option under this section, except where such individual or HUF ceases to
have any business income.

Slab Rates

Old (A.Y. 23-24) NEW(Default)

Sec 115 BAC(1) Sec 115BAC (1A) [FA 2023]
Total Income Rate (%)
Total Income Rate (%) Shortcut
Upto ₹ 2,50,000 Nil
Upto ₹ 3,00,000 Nil -
₹ 2.5L to 5L 5%
₹ 3L to 6L 5% 15000
₹ 5L to 7.5L 10%
₹ 6L to 9L 10% 30000
₹ 7.5L to 10L 15%
₹ 9L to 12L 15% 45000
₹ 10L to 12.5L 20%
₹ 12L to 15L 20% 60000
₹ 12.5L to 15L 25%
Above ₹ 15L 30% -
Above ₹ 15L 30%

Rebate u/s 87A :

1) Assessee is Individual
2) He is Resident in India
3) Whose total income (From All Heads after Deduction) (Normal + Special excluding Agriculture Income
and Exempt Income) does not exceed ₹7 lakh
Rebate= ₹25000 or 100% of tax payable, whichever is lower
Rebate not available for tax computed u/s 112A [FA'23]
# Marginal relief incase of income slightly exceed 7L :
Rebate u/s 87A is subject to marginal relief from A.Y. 24-25, if net income exceed 7 Lakh but does not
exceed 727770 income tax on such income cannot exceed the amount by which net income exceed 7 lakh

Eg 1 : Total Income 6,92,000 Eg 2 : Total Income 7,20,000 with marginal relief

Solution : Upto First 300000 - NIL Solution : Upto First 3,00,000 - NIL
Next 3,00,000 - 5% - 15000 Next 300000 - 5% - 15000
92000 - 10% - 9200 1,20,000 - 10% - 12000
Total tax 24200 Total tax 27000
(-) Rebate u/s 87A (24200) Marginal Relief
Tax NIL = (Tax on 7 lakh ) + (TI - 7 lakh)
= Nil + 20000
= 20000 (+ HEC @4% )
= 20800
i.e Tax cannot exceed 20800

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[Link] Basic 1.12 CA Vijay Sarda 8956651954
Eg 3 : Total Income 7,25,000 with marginal relief
Solution : Upto First 3,00,000 - NIL
Next 300000 - 5% - 15000
1,25,000 - 10% - 12500
Total tax 27500
Marginal Relief
= (Tax on 7 lakh ) + (TI - 7 lakh)
= Nil + 25000
= 25000 (+ HEC @4% )
= 26000
i.e Tax cannot exceed 26000

# Further Points
1. Income Chargeable at Special rate
Income Rates
STCG referred to in Sec 111A (Securities) 15%
LTCG referred to in Sec 112 20%
LTCG u/s 112 A Beyond ₹1 Lakh 10%
Casual income (e.g. Lottery. Horse winnings, etc.) (Sec 115 BB) 30%

2. Surcharge : I / HUF / AOP / BOI / AJP as:

u/s 111A, 112

Income 112A, Dividend
Other
Income
1) TI[including Income u/s 111A, 112 , 112A & dividend income does not Nil Nil
Exceed 50L]
2) TI [including Income u/s 111A,112,112A& dividend income exceed 50L 10% 10%
but does not exceed 1cr.]
3) TI [including Income u/s 111A,112,112A & dividend income exceed 1cr 15% 15%
but does not exceed 2cr.]
4) TI [excluding Income u/s 111A,112,112A & dividend income exceed 2cr 15% 25%
but does not exceed 5cr.]
5) TI [excluding Income u/s 111A,112,112A & dividend income exceed 5cr] 15% 25% [FA 23]
6) TI [including Income u/s 111A,112,112A & dividend income exceed 2cr 15% 15%
but not covered by situation 4 & 5]

Note : If surcharge is applicable on taxable Income of assessee as per specified limits, maximum surcharge
applicable on Tax on Dividend Income is up to 15% of Tax Amount. (i.e. if your income is in slab limit of
surcharge of 25%, tax on dividend income will be having capping on surcharge on tax @ 15% on tax
amount proportionate to total tax with income.

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Sec 115BAD Tax Incentive for Resident Co-operative Society
The condition for concessional rate shall be that the total income of co-operative society is computed -
A. Without claiming the following deductions :
> Exemption for SEZ unit contained in section 10AA
> Additional Depreciation u/s 32(1)(iia)
> Deductions u/s 32AD, 33AB, 33ABA sub-clause (ii) or sub-clause (iia) /sub-clause (iii) of sub-sec (1)
or sub-sec (2AA) of sec 35 / 35AD / 35CCC
> Provisions under Chaper VI A except 80JJAA
B. Without Set off of any loss c/f or depreciation from an earlier AY, if the same is attributable to any of
the deductions referred in point A. Also, the same cannot be carried forward.
C. By claiming Depreciation u/s 32 except Additional depreciation :
> The concessional rate shall not apply unless option is exercised by the co-operative society in the
prescribed manner on or before the due date specified u/s 139(1) of the Act for furnishing the returns
of income for any previous year relevant to the A.Y. commencing on or after 1st April, 2021 and such
option once exercised shall apply to subsequent assessment years
> Provisions of Sec 115JC, AMT, shall not apply to such Resident Co- operative Society. Similarly,
provisions in Sec 115JD relating to carry forward and set off of AMT credit, if any, shall not apply.
> Option once exercised cannot be withdrawn;
> On fulfillment of above conditions, a co-operative society resident in India shall have the option to pay
tax at 22% for AY 2021-22 onwards in respect of its total income so however that if it fails to satisfy
conditions in any previous year, the option shall become invalid and other provisions of the Act shall
apply. The surcharge applicable to such co-op society shall be levied at 10% (Effective rate 25.168%)

Sec 115BAE Tax on income of certain new manufacturing co-op societies

1. Assessee - Engaged in Manufacturing, [Link] Society in India (Resident)

2. Following are not considered as manufacturing

(i) development of computer software in any form or in any media;
(ii) mining;
(iii) conversion of marble blocks or similar items into slabs;
(iv) bottling of gas into cylinder;
(v) printing of books or production of cinematography film; or
(vi) any other business as may be notified by the Central Government in this behalf;

3. Tax Rates : Income

Out of Manufacturing Other Activity

Activity (Eg Dividend Rent)

17.16% 25.168%
(15% tax + 10% of surcharge + 4% HEC) (22% tax + 10% of surcharge + 4% HEC)
4. Option once taken cannot be withdrawn

5. Deduction u/s 115BAD cannot be taken

6. This option needs to be taken before filing ITR for A.Y. 24-25

7. If losses and unabsorbed depreciation arise because of above deduction it cannot be taken.

[Link]
[Link] Basic 1.14 CA Vijay Sarda 8956651954
8. Additional conditions -
a. It must be registered on or after 1/4/2023 and should commence manufacturing or production of an
article or thing on or before 31.3.2024
b. It should not be formed by splitting up or the reconstruction of a business already in existence (except in case
of a company, business of which is formed as a result of the re-establishment, reconstruction or revival by the
person of the business of any undertaking referred to in sec 33B in the circumstances and within the period
specified therein)
c. It does not use any machinery or plant previously used for any purpose
i) Any P&M which was used outside India & is imported into India from any country outside India;
ii) No deduction on account of depreciation is allowed in Income-tax Act, 1961 in India earlier
iii) Value of Second hand P& M does not exceed 20% of the total value of P&M.
d. It should not be engaged in any business other than the business of manufacture or production of any
article or thing and research in relation to, or distribution of, such article or thing manufactured or
produced by it.
e. When AO comes across a transaction between Assessee and other persons where Profit Generated to
another persons generate more than ordinary profit then AO can club the additional income and such
income shall be taxed @30%

Sec 115BAB & 115BAA Optional tax rate For Companies

Particulars Section 115BAB Section 115BAA

1. Applicability Domestic manufacturing company Any domestic company

2. Rate of tax 15% 22%
3. Rate of surcharge 10% 10%
17.16% 25.168%
Effective rate of tax
4. [Tax@15% (+) Surcharge @10% [Tax@22% (+) Surcharge
(including surcharge & HEC)
(+) HEC@4%] @10%(+)HEC @4%]
5. Applicability of MAT Not applicable Not applicable

6. Manner of computation of tax liability

Income on which The rate of tax (i.e., 17.16%) is The rate of tax (i.e.,25.168%) is
concessional rate of tax is applicable in respect of income notwithstanding anything
applicable derived from or incidental to contained in the Income-tax Act,
manufacturing or production of 1961, but subject to the provisions
an article or thing. of Chapter XII, other than section
115BA and 115BAB.
Rate of tax on Special Special Income is Taxable at Special Income is Taxable at
Income [for example, Special rate + 10% Surcharge + Special rate + 10% Surcharge
long-term CG chargeable to 4% HEC + 4% HEC
tax u/s 112 and 112A,
short-term capital gains
chargeable to tax u/s 111A]
Rate of tax on other The applicable tax rate is 25.168% The applicable tax rate is 25.168%
income [HP/IFOS] (i.e., tax @22%, plus surcharge (i.e., tax @22% plus surcharge
@10% plus HEC@4%) @10% plus HEC@4%).
AO club income because of The rate of 34.32% (i.e., Tax
close connection @30% +surcharge @10% + -
HEC@4%) would be applicable
in specified circumstance

[Link]
[Link] Basic 1.15 CA Vijay Sarda 8956651954
7. Other Points a. It must be registered on or after 1/4/2023 a. If losses and unabsorbed
and should commence manufacturing or depreciation arise because of
production of an article or thing on or before above deduction it cannot be
31.3.2024 taken.
b. It should not be formed by splitting up or the b. Option once taken cannot be
reconstruction of a business already in existence withdrawn
(except in case of a company, business of which
is formed as a result of the re-establishment,
reconstruction or revival by the person of the
business of any undertaking referred to in
sec 33B in the circumstances and within the
period specified therein)
c. It does not use any machinery or plant
previously used for any purpose
i) Any P&M which was used outside India &
is imported into India from any country
outside India;
ii) No deduction on account of depreciation
is allowed in Income-tax Act, 1961 in
India earlier
iii) Value of Second hand P& M does not
exceed 20% of the total value of P&M.
d. It does not use any building previously
used as a hotel or a convention centre
e. If losses and unabsorbed depreciation arise
because of above deduction it cannot be
taken
f. Option once taken cannot be withdrawn
g. Business of manufacture or production of
any article or thing does not include
business of –
i) Development of computer software in any
form or in any media
ii) Mining
iii) Conversion of marble blocks or similar
items into slabs
iv) Bottling of gas into cylinder
v) Printing of books or production of
Cinematography films
vi) Any other business as may be notified by
the Central Govt. in this behalf.
8. Following a. PGBP
deductions i) Additional dep u/s 32(1)
not allowed ii) Scientific research u/s 35
iii) Specified business u/s 35AD
iv) Agriculture extension project u/s 35CCC
v) Skill development project u/s 35CCD
vi) Deduction u/s 32AD, 33AB, 33ABA
b. Exemptions u/s 10AA
c. Deduction - All deductions except u/s 80JJAA, 80LA, 80M

[Link]
[Link] Basic 1.16 CA Vijay Sarda 8956651954
Undisclosed Sources of Income
Sec 68: Cash Credits : Where any sum is found credited in the books of an assessee maintained for any
previous year and the assessee offers no explanation about the nature and source or the explanation offered
is not satisfactory in the opinion of the Assessing Officer, the sum so credited may be charged as income of
the assessee of that previous year.

Unexplained loan or borrowing : Where the sum so credited consists of loan or borrowing or any such
amount, by whatever name called, any explanation offered by the assessee in whose books such sum is
credited shall not be deemed to be satisfactory, unless -
- The person in whose name such credit is recorded in the books of such assessee also offers an explanation
about the nature and source of such sum so credited; and
- Such explanation in the opinion of the Assessing Officer has been found to be satisfactory.

Unexplained Share Capital/ Premium : Any explanation offered by a closely held company in respect of
any sum credited as share application money, share capital, share premium or any such amount, by whatever
name called, in the accounts of such company shall be deemed to be not satisfactory, unless
- The person, being a resident, in whose name such credit is recorded in the books of such company also
explains about the nature and the source of such sum so credited and
- Such explanation in the opinion of the Assessing Officer has been found to be satisfactory

Non-applicability to Venture Capital Fund or Venture Capital Company : These additional conditions
would not apply if the person, in whose name the sum is recorded, is a Venture Capital Fund or Venture
Capital Company registered with SEBI

Sec 69 Unexplained Investments : Where in the financial year immediately preceding the assessment year,
the assessee has made investments which are not recorded in the books of account and the assessee offers
no explanation about the nature and the source of investments or the explanation offered is not satisfactory
in the opinion of the Assessing Officer, the value of the investments are taxed as deemed income of the
assessee of such financial year.

Sec 69A Unexplained money etc : Where in any financial year the assessee is found to be the owner of
any money, bullion, jewellery or other valuable article and the same is not recorded in the books of account
and the assessee offers no explanation about the nature and source of acquisition of such money, bullion etc.
or the explanation offered is not satisfactory in the opinion of the Assessing Officer, the money and the
value of bullion etc. may be deemed to be the income of the assessee for such financial year.

Sec 69B Amount of investments etc., not fully disclosed in the books of account : Where in any
financial year the assessee has made investments or is found to be the owner of any bullion, jewellery or
other valuable article and the Assessing Officer finds that the amount spent on making such investments or
in acquiring such articles exceeds the amount recorded in the books of account maintained by the assessee
and he offers no explanation for the difference or the explanation offered is unsatisfactory in the opinion of
the Assessing Officer, such excess may be deemed to be the income of the assessee for such financial year.

[Link]
[Link] Basic 1.17 CA Vijay Sarda 8956651954
Sec 69C Unexplained expenditure : Where in any financial year an assessee has incurred any expenditure
and he offers no explanation about the source of such expenditure or the explanation is unsatisfactory in t
he opinion of the Assessing Officer, Assessing Officer can treat such unexplained expenditure as the income
of the assessee for such financial year. Such unexplained expenditure which is deemed to be the income of
the assessee shall not be allowed as deduction under any head of income

Sec 69D Amount borrowed or repaid on hundi : Where any amount is borrowed on a hundi or any
amount due thereon is repaid other than through an account-payee cheque drawn on a bank, the amount so
borrowed or repaid shall be deemed to be the income of the person borrowing or repaying for the previous
year in which the amount was borrowed or repaid, as the case may be. However, where any amount
borrowed on a hundi has been deemed to be the income of any person, he will not be again liable to be
assessed in respect of such amount on repayment of such amount. The amount repaid shall include interest
paid on the amount borrowed.

Sec 115BBE Unexplained money, investments etc. to attract tax @60%

(i) In order to control laundering of unaccounted money by availing the benefit of basic exemption limit,
the unexplained money, investment, expenditure, etc. deemed as income under section 68 or section 69
or section 69A or section 69B or section 69C or section 69D would be taxed at the rate of 60% plus
surcharge @25% of tax. Thus, the effective rate of tax (including surcharge@25% of tax and cess@4%
of tax and surcharge) is 78%.

(ii) No basic exemption or allowance or expenditure shall be allowed to the assessee under any provision of
the Income-tax Act, 1961 in computing such deemed income.

(iii) Further, no set off of any loss shall be allowable against income brought to tax under sections 68 or
section 69 or section 69A or section 69B or section 69C or section 69D.

[Link]
[Link] Basic 1.18 CA Vijay Sarda 8956651954
For your Practice - Solved Questions
P.1 Based on Concept of Marginal Relief
In-case of a resident Resident individual, age below 60 years, calculation of tax liability and marginal
relief shall be as Under-
Solution :
Total Income Income Tax & Surcharge
50,00,000 13,12,500 + Nil
51,00,000 13,42,500 + 1,34,250 = 14,76,750 (Restricted to 14,12,500)
1,00,00,000 28,12,500 + 2,81,250 = 30,93,750
1,02,00,000 28,72,500 + 4,30,875 = 33,03,375 (Restricted to 32,93,750)
2,00,00,000 58,12,500 + 8,71,875 = 66,84,375
2,03,00,000 59,02,500 + 14,75,625 = 73,78,125 (Restricted to 69,84,375)
5,00,00,000 1,48,12,500 + 37,03,125 = 1,85,15,625
5,05,00,000 1,49,62,500 + 55,36,125 = 2,04,98,625 (Restricted to 1,90,15,625)

P.2 Based on Normal Provisions + Marginal Relief

Compute the tax liability of Mr. Akash (aged 55 years), having total income of ₹1,02,00,000 for the
AY 2024-25. Assume That his total income comprises of salary income, Income from house property
and interest from fixed deposit account. Also, assume that Mr. Akash has not opted for the provisions of
section 115BAC.
Solution :
A) Tax payable including surcharge on total income of 1,02,00,000
2,50,000 - 5,00,000 @ 5% 12,500
5,00,000 - 10,00,000 @ 20% 1,00,000
10,00,000 - 1,02,00,000 @ 30 % 27,60,000
Total 28,72,500
Add surcharge @ 15% 4,30,875 33,03,375
B) Tax on Total Income of 1 cr. 28,12,500
(+) Surcharge 2,81,250
30,93,750
C) Total Income Less 1 cr. 2,00,000
D) Tax Payable on Total Income of 1 cr. (+) the excess of Total 32,93,750
Income over 1 cr.(B+C)
E) Tax Payable : lower of A & D 32,93,750
(+) Health & Education cess 1,31,750
Tax Liability 34,25,500
F) Marginal Relief (A-D) 9,625

[Link]
[Link] Basic 1.19 CA Vijay Sarda 8956651954
P.3 Based on Normal Provisions + Marginal Relief
Compute tax liability of Mr. Deepak (aged 57 years), having total income of ₹2,01,00,000 for the AY 2024-25.
Assume That his total income comprises of Salary income, Income from house property and interest from
fixed deposit account. Assume that Mr Deepak has exercised the option to shift out of sec 115BAC
Solution :

A) Tax Payable including surcharge on total income of 2,01,00,000

2,50,000 - 5,00,000 @ 5% 12,500
5,00,000 - 10,00,000 @ 20% 1,00,000
10,00,000 - 2,01,00,000 @ 30% 57,30,000
Total 58,42,500
Add : Surcharge @ 25% 14,60,625 73,03,125

B) Tax on Total income of 2cr. 58,12,500

(+) Surcharge @ 15% 8,71,875
66,84,375
C) Total Income less 2cr. 1,00,000

D) Tax Payable on total income of 2cr (+) the excess 67,84,375

of total income over 2 cr. (B+C)

E) Tax Payable : lower of A & D 67,84,375

(+) Health & Education cess 2,71,375
Tax Liability 70,55,750

F) Marginal relief (A-D) 5,18,750

Alternative method
A) Tax Payable including surcharge on total income of 2,01,00,000
2,50,000 - 5,00,000 @ 5% 12,500
5,00,000 - 10,00,000 @ 20% 1,00,000
10,00,000 - 2,01,00,000 @ 30% 57,30,000
Total 58,42,500
Add : Surcharge @ 25% 14,60,625 73,03,125

B) Tax on Total income of 2 cr. 66,84,375

(+) Surcharge @ 15%

C) Excess Tax payable (A - B) 6,18,750

D) Marginal Relief (6,18,750 - 1,00,000) 5,18,750

Being the amount of income in excess of 2 cr.

E) Tax Payable (A - D) 67,84,375

(+) Health & Education cess @ 4% 2,71,375
Tax Liability 70,55,750

[Link]
[Link] Basic 1.20 CA Vijay Sarda 8956651954
P.4 Based on Amendment
Compute tax liability of Mr. Rajesh (aged 57 years), having total income of ₹5,01,00,000 for the
AY 2024-25. Assume that his total income comprises of salary income, income from house property and
interest on fixed deposit and is same under both tax regimes.
Solution :
Computation of tax liability of Mr. Rajesh for the A.Y 2024-25 under default tax regime

Tax Payable including surcharge on total income of 5,01,00,000

₹ 3,00,000 - ₹ 6,00,000 @ 5% 15,000
₹ 6,00,000 - ₹ 9,00,000 @ 10% 30,000
₹ 9,00,000 - ₹ 12,00,000 @ 15% 45,000
₹ 12,00,000 - ₹ 15,00,000 @ 20% 60,000
₹ 15,00,000 - ₹ 5,30,00,000 @ 30 % 1,45,80,000
Total 1,47,30,000
Add : Surcharge @ 25% 36,82,500 1,84,12,500
(+) Health & Education cess @ 4% 7,36,500
Tax Liability 1,91,49,000

Computation of tax liability of Mr. Rajesh for the A.Y 2024-25 under optional tax regime of the Act

A) Tax Payable including surcharge on total income of 5,01,00,000

2,50,000 - 5,00,000 @ 5% 10,000
5,00,000 - 10,00,000 @ 20% 1,00,000
10,00,000 - 5,01,00,000 @ 30% 1,47,30,000
Total 1,48,40,000
Add : Surcharge @ 37% 54,90,800 2,03,30,800

B) Tax on Total income of 5cr. 1,48,10,000

(+) Surcharge @ 25% 37,02,500
1,85,12,500
C) Total Income less 2cr. 1,00,000

D) Tax Payable on total income of 5cr (+) the excess 1,86,12,500

of total income over 5 cr. (B+C)

E) Tax Payable : lower of A or D 1,86,12,500

(+) Health & Education cess 7,44,500
Tax Liability 1,93,57,000

F) Marginal relief (A-D) 17,18,300

[Link]
[Link] Basic 1.21 CA Vijay Sarda 8956651954
P.5 Based on Normal + Special Income
Mr. Agarwal aged 40 years and a resident in India, has a total income of ₹ 6,50,00,000, comprising long
term capital gain taxable under section 112 of ₹ 55,00,000, short term capital gain taxable under 111A
of ₹ 65,00,000 and other income of ₹ 5,30,00,000. Compute his Tax liability for A.Y 2024-25 under the
default tax regime and optional tax regime as per the normal provisions of the Act assuming that the
total income and its components are the same in both tax regimes.
Solution :
Computation of tax liability of Mr. Agarwal for the A.Y 2024-25 under default tax regime

Particulars ₹ ₹
Tax on total income of ₹ 6,50,00,000
Tax @ 20% of ₹ 55,00,000 11,00,000
Tax @ 15% of ₹ 65,00,000 9,75,000
Tax on other income of ₹ 5,30,00,000
₹ 3,00,000 - ₹ 6,00,000 @ 5% 15,000
₹ 6,00,000 - ₹ 9,00,000 @ 10% 30,000
₹ 9,00,000 - ₹ 12,00,000 @ 15% 45,000
₹ 12,00,000 - ₹ 15,00,000 @ 20% 60,000
₹ 15,00,000 - ₹ 5,30,00,000 @ 30 % 1,54,50,000 1,56,00,000
1,76,75,000
Add: Surcharge @ 15% on ₹ 20,75,000 3,11,250
@ 25% on ₹ 1,56,00,000 39,00,000 42,11,250
2,18,86,250
Add: Health and education cess 4% 8,75,450
Tax liability 2,27,61,700

Computation of tax liability of Mr. Agarwal for the A.Y 2024-25 under normal provisions of the Act

Particulars ₹ ₹
Tax on total income of ₹ 6,50,00,000
Tax @ 20% of ₹ 55,00,000 11,00,000
Tax @ 15% of ₹ 65,00,000 9,75,000
Tax on other income of ₹ 5,30,00,000
₹ 2,50,000 - ₹ 5,00,000 @ 5% 12,500
₹ 5,00,000 - ₹ 10,00,000 @ 10% 1,00,000
₹ 10,00,000 - ₹ 5,30,00,000 @ 30% 1,56,00,000 1,57,12,500
1,77,87,500
Add: Surcharge @ 15% on ₹ 20,75,000 3,11,250
@ 37% on ₹ 1,57,12,500 58,13,625 61,24,875
2,39,12,375
Add: Health and education cess 4% 9,56,495
Tax Liability 2,48,68,870

[Link]
[Link] Basic 1.22 CA Vijay Sarda 8956651954
P.6 Based on Normal + Special Income
Mr. Sharma aged 62 years and a resident in India, has a total income of ₹ 2,30,00,000, comprising long
term capital gain taxable under section 112 of ₹ 52,00,000, short term capital gain taxable u/s 111A of
₹ 64,00,000 and other income of ₹ 1,14,00,000. Compute his tax liability for A.Y. 2024-25 under the
default tax regime and optional tax regime as per the normal provisions of the Act assuming that the
total income and its components are the same in both tax regimes.
Solution :

Computation of tax liability of Mr. Sharma for the A.Y 2024-25 under default tax regime

Particulars ₹ ₹
Tax on total income of ₹ 2,30,00,000
Tax @ 20% of ₹ 52,00,000 10,40,000
Tax @ 15% of ₹ 64,00,000 9,60,000
Tax on other income of ₹ 1,14,00,000
₹ 3,00,000 - ₹ 6,00,000 @ 5% 15,000
₹ 6,00,000 - ₹ 9,00,000 @ 10% 30,000
₹ 9,00,000 - ₹ 12,00,000 @ 15% 45,000
₹ 12,00,000 - ₹ 15,00,000 @ 20% 60,000
₹ 15,00,000 - ₹ 1,14,00,000 @ 30 % 29,70,000 31,20,000
51,20,000
Add: Surcharge @ 15% 7,68,000
2,18,86,250
Add: Health and education cess 4% 2,35,520
Tax liability 61,23,520

Computation of tax liability of Mr. Sharma for the A.Y 2024-25 under normal provisions of the Act

Particulars ₹ ₹
Tax on total income of ₹ 2,30,00,000
Tax @ 20% of ₹ 52,00,000 10,40,000
Tax @ 15% of ₹ 64,00,000 9,60,000
Tax on other income of ₹ 1,14,00,000
₹ 3,00,000 - ₹ 5,00,000 @ 5% 10,000
₹ 5,00,000 - ₹ 10,00,000 @ 20% 1,00,000
₹ 10,00,000 - ₹ 1,14,00,000 @ 30% 31,20,000 32,30,000
52,30,000
Add: Surcharge @ 15% 7,84,500
60,14,500
Add: Health and education cess 4% 2,40,580
Tax liability 62,55,080

[Link]
[Link] Basic 1.23 CA Vijay Sarda 8956651954
For your Practice - Unsolved Questions
P. 1 Calculate the Tax Liability of Mr. Pranav age 43 years having the Following Income (Normal tax
calculation with Rebate)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 3,00,000
Dividend Income 1,50,000

P. 2 Calculate Tax Liability of Ms. Vaishnavi age 40 years having Following Income (Special Income)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 6,00,000
Other Sources 1,50,000
LTCG u/s 112 40,000
STCG 30,000

P. 3 Calculate Tax Liability of Mr. Kaliya age 52 years having Following Income (Special Income)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 7,00,000
Other Sources 1,50,000
LTCG u/s 112 40,000
STCG u/s 111A 30,000

P. 4 Calculate Tax Liability of Mr. Micromax age 56 years having following Income (Special Income)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 9,00,000
Other Sources 1,80,000
LTCG u/s 112 60,000
STCG u/s 111A 50,000

P. 5 Calculate Tax Liability of Mr. Stark age 55 years having Following Income (Surcharge)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime

Particulars ₹
Business Income 62,00,000
Other Sources 8,00,000
LTCG u/s 112 8,00,000
STCG u/s 111A 2,00,000

[Link]
[Link] Basic 1.24 CA Vijay Sarda 8956651954
P. 6 Calculate Tax Liability of Mr. Thanos age 33 years having Following Income (Surcharge)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 62,00,000
LTCG u/s 112 8,00,000
STCG u/s 111A 2,00,000

P. 7 Calculate Tax Liability of Mr. Rocket age 41 years having Following Income (Surcharge)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime

Particulars ₹
Business Income 2,70,00,000
LTCG u/s 112 51,00,000
STCG u/s 111A 48,00,000

P. 8 Calculate Tax Liability of Mr. Groot age 48 years having Following Income (Surcharge)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 6,30,00,000
LTCG u/s 112 41,00,000
STCG u/s 11A 10,00,000

P. 9 Calculate Tax Liability of Mr. Hulk age 52 years having Following Income (Surcharge)
a) Calculate the tax liability as per the Old regime
b) Calculate the tax liability as per the New regime
Particulars ₹
Business Income 1,90,00,000
STCG u/s 11A 40,00,000

P. 10 Mr. Raghav aged 26 years and a resident in India, has a total income of 6,50,000, comprising his
salary income and interest on bank fixed deposit. Compute his tax liability for A.Y. 2024-25 under
default tax regime under section 115BAC (Based on Amendment)

P. 11 Mr. Pawan aged 35 years and a resident in India, has a total income of 7,15,000, comprising his salary
income and interest on bank fixed deposit. Compute his tax liability for A.Y. 2024-25 under default
tax regime under section 115BAC (Based on Amendment)

[Link]
[Link] Basic 1.25 CA Vijay Sarda 8956651954