MindMap Gallery Income Tax Act Sections
- 71
Income Tax Act Sections
This mind map offers a detailed overview of the sections within an Income Tax Act, categorizing various types of income such as dividends, interest, pensions, and deemed income. It also outlines deductible and disallowable expenses and depicts specific provisions and charging sections relevant to different income scenarios.
Edited at 2022-11-07 09:06:10
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Income from Other Sources
Sec 57 Deductible Expenses
Intersest expenses incurred in earning income from dividend/ units of mutual funds
20% of grossed up value
Int on securities
sum paid as commission or remuneration to broker/any other person
Income consists of recovery from employees as PF/superannuation
amt of contr. remitted before due date as per respective acts u/s 36(1)(va)
Income from hiring
Repairs, insurance prem, depreciation/unabsorbed depreciation
Family Pension
sum equal to :whichever is less
33 1/3%
₹15,000
Int. on compensation + Enhanced
50% of such interest
Sec 58 Disallowable expenses
Personal expense
Interest chargeable to tax → payable outside India →not paid/deducted at source
payment chargeable u/H Salaries →payable outside India →unless tax paid or deducted at sorce
payment to related person to the extent →excessive or unresonable by AO, wrt FMV
aggregate payments >₹10,000 to a person in a day in cash/ mode other than cash
expense/allowances in connection with casual incomes/ earnings
30% of exepenses on sum payable to a resident on which Deductible at source →if such tax is not deducted or after deduction not paid on or before due date specified in u/s 139(1)
Sec 59 Deemed Income
Remisssion or cessation of a trading liability or receipt of any amount in recpect of loss or expenditure allowed as deductio in earlier PY
Sec 56 Charging section
Dividend Incomes
taxed in hands of shareholders
Deemed Dividend
2(22)a Distribution of assets/ 2(22)b dist. of debentures, deposit certificates, etc. (debent/stock to any SH and Bonus shares to PSH) / 2(22)c dist. of assets of liquidation/ 2(22)d reduction in share acpital and paying it to SH
2(22)e loans or advances
Dividend/ Income from Units of Mutual Funds
In hands of shareholders/ unitholders
RATE= normal tax rates
deduction= 20% of Grossed up value
In hands of Co./ Mutual funds
liable to deduct tax at source u/s 115D/115R @10%
if the following conditions are satisfied, there’s no need to deduct tax at source by the company u/s 194, on distribution of dividend: ▪ The shareholder is an individual; ▪ Dividend is paid by the company in any mode other than cash; and ▪ Aggregate dividend paid/payable by the company to the shareholder in the financial year ≤ ₹5,000.
MF not liable to deduct tax at source if aggregate payable to unitholder is ≤ ₹5,000
Casual Incomes
Sec 115BB
Recipient
@30% tax rate
no deduction allowed (Chapter VI-A incl)
Income subjected to TDS @30% (winnings from races other than horse races not subjected to TDS)
income to be grossed (cuz received is after TDS but tax is on before TDS)
Gross winnings= net winnings/ (100- rate of TDS) [i.e. net winnings/70%]
adj of unexhausted basic exemption not permited
Payer
not liable to pay tax
liable to deduct tax at source @30% u/s 194B/194BB
only if winnings > ₹10,000
56(2)(ib)
winnings from lotteries/ crossword puzzles/ races including horse races/ card games/ other games of any sort/ gambling/ betting
Sum of Money or property received by any person [Sec 56(2)(x)]
Non applicability from relative on occasion of marriage under a will or by way of inhehritance in comntempation of death of payer or donor from any fund/ foundation/ university/ other edu institution/ hospital/ medical insstitution/ trust/ etc not reagarded as transfer u/s 47 (i)/ (iv)/ (v)/ (vi)/ (vi b)/ (vi d)/ (vi) for treatment of illness related to COVID -19 in case of death due to COVID-19 to the extent of that sum or such aggregate from e'er no limit from any other person sum ≤ ₹10 lakhs where payments is received within 12 months from the date of death and subject to such other conditions notified by CG
Gifts
Provision apply only to property which is the nature of capital asset and not stock-in-trade, raw mateial or consummable stores of any business of the Recipient gift recieved by non resident shall be deemed to accrue or arise in India
Money
aggregate >₹50,000 (on entire sum)
Movable Property

No consideration
exceeds ₹50,000 (entire FMV)
Inadequate Consideration
Diff b/w FMV & Consideration exceeds ₹50,000
Immovable Property
No consideration
if SDV exceeds ₹50,000
Inadequate Consideration
SDV- consideration
>₹50,000
10% of consideration
56(2)(viib)
Consideration received in excess of FMV of shares of a closly held company, where such shares are issued at PREMIUM
Chargeable to tax under IFOS= issue price- FMV of shares
conditions to satisfied Issue price> FMV Issue price> FAce Value
56(2)(viii)
Int received on compensation/enhanced compensation
taxability= year in which int. is received
deductions 50% of int. received
56(2)(ix)
Advance forfeited due to failure of negotiations for transfer of a Capital Asset
56(2)(xi)
compensation or other payment, due to or received by any person, in connection with terminatin of his employment or modification of the terms and conditions relating thereto
Others
followimg income if not chargeable u/H PGBP
int on securities
income from letting out hire of machinery, plant or furniture
where letting out of buildings is inseparble from
sum received under a Keyman insurance polic including bonus (if not chargeable u/H Salaries
income chargeable to tax but not fallinh under any other head of income
Deemed income u/s 59
sum received by an employer from his e'ee as cont to PF, superannuationfund, or any other fund
Floating Topic
→ ≥ ≤