Indian Income Tax (Direct Tax) - A comprehensive Crash Study

Learn how residential status determines tax incidence in India, with the residence rule and source rule, and explore 2020 amendments on deemed resident status and persons of Indian origin.

Explore the taxation of mixed agricultural and non-agricultural income with special and general rules for coffee, rubber, tea, sugar, and related processing, plus partial integration.

Learn the salary income head, covering retirement benefits, allowances, perquisites, provident fund, and deductions. Understand basis of charge under section 15, employer-employee relationship, place of accrual, and the computation format.

Explore leave encashment as a retirement benefit under section 10, covering entitlement, balance leaves, and cashing options with service and retirement tax treatment.

Explore retrenchment compensation under Industrial Disputes Act 1947, its purpose, and exemptions calculated using the average of the last three months’ salary, completed years of service, and the 15/26 rule.

this lecture explains house rent allowance exemptions, showing how to pick the least of actual hra received, rent paid minus 10% of salary, or 50/40 percent of salary (metro/non).

Learn what perquisites are in salaries, with examples like car and accommodation, and follow a four-step method to value, deduct recoveries and official use, and determine taxable perquisites.

Explore perquisites for movable assets from an employer, excluding motor cars; computers incur no value, while owned assets incur 10% of original cost annually and hired assets incur hire charges.

Explains deductions for house property under section 24 and 24B, including standard deduction of 30 percent on net annual value and interest on borrowed capital for self-occupied property.

Explore how unrealized rent from a let-out property is treated under income tax, detailing conditions, deduction rules under sections 23 and 24, and the impact when rent is received later.

The lecture explains enhanced depreciation under section 32(1) with a 20 percent additional allowance for new plant and machinery when the wbb base depreciation is chosen, subject to conditions.

Analyze the amended section 35 scientific research deductions for in-house and outsourced R&D, before and after commencement, with revenue and capital distinctions, and the 2020 finance act changes affecting eligibility.

Explore section 35(80) capital investment linked incentives, offering a 100 percent deduction for specified agricultural, infrastructure, housing or hospital related, and miscellaneous businesses, subject to exclusions and eligibility rules.

Explore section 36, which consolidates various deductible business expenses under direct tax law, including insurance for stock and employees, bonuses, interest on borrowings, welfare contributions, and provisions for bad debts.

Understand section 43B disallowances for unpaid liabilities, allowing deductions only when payments are made by the due date under 139(1), covering taxes, employer contributions, bonuses, leave salary, and loan interest.

Analyze capital gains under sections 45–55, emphasizing transfer, computation of profit, and exemptions under section 54 to 54G, including cost of acquisition and indexation.

Compute taxable income and capital gains with a simple short term and long term format, deducting transfer expenses and costs of acquisition and improvement; apply indexation for long term gains.

Identify how certain transactions, like demerger and conversion of securities, avoid capital gains and learn the continuity rules for succession of business to holding, LLP, or sole proprietorship.

Explains special cases for full value of consideration in capital gains, including converting capital assets into stock in trade and transfer between firm and partner using FMV on transfer date.

Analyze compulsory acquisition and other transfers with enhanced compensation, essential dates, and tax implications for capital gains, including liquidation distributions and insurance claims for damaged assets.

Explore special cost of acquisition rules for gifts or inheritance, pre-2001 FMV substitution, and assets like tenancy rights, road permits, and goodwill.

Explore the fifth head of income, income from other sources, as the last residuary head, and distinguish general versus specific incomes under section 56.

Explore dividend stripping, washing transactions, and bonus stripping under sections 94(1), 94(7), and 94(8), with record dates, three- to nine-month windows, and their impact on capital gains.

Explore clubbing of income under sections 60 to 63, including revocable transfers, irrevocable transfers, and exceptions such as trust creation and pre-1961 transfers.