Concise Commentary on Income Tax & International Taxation (Set of 2 Vols.)

About Concise Commentary on Income Tax & International Taxation (With Tax Planning / Problems & Solutions) in 2 Vols. Set

Contents at a Glance
Preface to the Twenty Sixth Edition.......................................................................................................vii
About the Book ....................................................................................................................................... ix
About the Authors ................................................................................................................................... xi
Detailed Contents ................................................................................................................................ xvii
Sectionwise Referencer ....................................................................................................................... xxxi
List of Rules Referred ......................................................................................................................... xxix
List of Circulars Referred ....................................................................................................................... xl
Table of Cases .................................................................................................................................... xliii
Vol 1
Part I
Direct Tax Laws
Chapter 1 Introduction ....................................................................................................................... 3
[Sections 1 to 4]
Chapter 2 Scope of Total Income and Residential Status ................................................................ 84
[Sections 5 to 9B]
Chapter 3 Incomes which do not Form Part of Total Income ....................................................... 164
[Sections 10, 10AA and 11 to 13B]
Chapter 4 Computation of Total Income [Sections 14 & 14A] & Income under the
Head "Salaries" ............................................................................................................. 232
[Sections 15 to 17]
Chapter 5 Income under the Head "Income from House Property" ............................................... 321
[Sections 22 to 27]
Chapter 6 Income under the Head "Profits and Gains of Business or Profession" ........................ 365
[Sections 28 to 44DB]
Chapter 7 Income under the Head"Capital Gains" ........................................................................ 755
[Sections 45 to 55A]
Chapter 8 Income under the Head "Income from Other Sources" .............................................. 1088
[Sections 56 to 59]
Chapter 9 Income of Other Persons Included in Assessee's Total Income
(Clubbing of Income) .................................................................................................. 1145
[Sections 60 to 65]
Chapter 10 Unexplained Cash Credits, Investments, Money, etc. ................................................ 1163
[Sections 68 to 69D]
Chapter 11 Set off or Carry Forward and Set off of Losses .......................................................... 1197
[Sections 70 to 80]
Chapter 12 Deductions to be Made in Computing Total Income .................................................. 1249
[Sections 80A to 80U (Chapter VIA)]
xiv Concise Commentary on Income Tax and International Taxation
Vol 2
Chapter 13 Agricultural Income and Its Tax Treatment ...............................................................1323
[Sections 2(1A) and 10(1)]
Chapter 14 Assessment of Individuals ..........................................................................................1339
Chapter 15 Assessment of Hindu Undivided Family ....................................................................1365
Chapter 16 Assessment of Firms (including LLP) ........................................................................1385
Chapter 17 Assessment of Association of Persons .......................................................................1415
Chapter 18 Assessment of Co-operative Societies .......................................................................1427
Chapter 19 Assessment of Trusts ..................................................................................................1451
[Sections 11 to 13]
Chapter 20 Taxation of Mutual Associations ...............................................................................1562
Chapter 21 Assessment of Companies ..........................................................................................1578
Chapter 22 Tonnage Tax Scheme .................................................................................................1632
Chapter 23 Return of Income and Procedure of Assessment ........................................................1650
[Sections 139 to 154]
Chapter 24 Search, Seizure & Survey...........................................................................................1779
[Sections 132, 132A, 132B, 133A, 153A to 153D, 158B to 158BI]
Chapter 25 Deduction and Collection of Tax at Source ...............................................................1824
[Sections 190 to 206CA i.e. Chapter XVIIA, XVIIB & XVIIIBB]
Chapter 26 Advance Payment of Tax ...........................................................................................2128
[Sections 207-211, 218 & 219]
Chapter 27 Interest and Fee Payable .............................................................................................2140
[Sections 201(1A), 220(2), 234A, 234B, 234C, 234D, 234E, 234F, 234G,234H & 244A]
Chapter 28 Refunds ......................................................................................................................2172
[Sections 237 to 241 & 245]
Chapter 29 Settlement of Cases ....................................................................................................2188
[Sections 245A to 245L]
Chapter 30 Appeals and Revision .................................................................................................2204
Chapter 31 Penalties and Prosecutions .........................................................................................2291
Chapter 32 Dispute Resolution Committee in Certain Cases .......................................................2367
[Section 245MA]
Chapter 33 Income Tax Authorities ..............................................................................................2379
[Sections 116 to 119]
Chapter 34 Business Reorganisation ............................................................................................2409
Chapter 35 Concepts of Tax-planning and Specific Management Decisions ...............................2443
Chapter 36 Specified Domestic Transactions and Provision of Transfer Pricing Applicable to
Such Transactions ......................................................................................................2462
[Chapter X, Sections 92BA, 92, 92C, 92CA, 92CB 92D, 92E & 92F]
Chapter 37 Liability in Special Cases ...........................................................................................2476
[Chapter XV, Sections 159 to 179]
Chapter 38 Collection and Recovery of Tax .................................................................................2505
[Sections 220 to 232]
Chapter 39 Miscellaneous Provisions ...........................................................................................2521
Contents at a Glance xv
Part II
International Taxation
Chapter 1 Taxation of Non-Residents with Special Reference to Chapters XII and XIIA of
Income-tax Act ...........................................................................................................2585
Chapter 2 Double Taxation Relief ..............................................................................................2625
[Sections 90, 90A and 91]
Chapter 3 Special Provisions Relating to Avoidance of Tax and General Anti-Avoidance
Rules (GAAR) (Transfer Pricing Provisions for International Transactions and
Other Provisions relating to Avoidance of Tax).........................................................2645
[Chapter X, Sections 92 to 92F, 93, 94A, 94B and 95 to 102]
Chapter 4 Advance Rulings ........................................................................................................2703
[Sections 245N to 245V]
Chapter 5 Equalisation Levy.......................................................................................................2720
[Chapter VIII of the Finance Act, 2016]
Chapter 6 Overview of Model tax Conventions .........................................................................2732
Chapter 7 Application and Interpretation of Tax Treaties ..........................................................2786
Chapter 8 Fundamentals of Base Erosion and Profit Shifting ....................................................2801
Appendix 1 Depreciation Table .....................................................................................................2834
Appendix 2 Table of rates at which depreciation is admissible for power generation business ....2844
Appendix 3 Notification No. 29/2018 dated 22.6.2018 .................................................................2846
Subject Index..............................................................................................................2849
xvi Concise Commentary on Income Tax and International Taxation
Detailed Contents
Preface to the Twenty Fifth Edition .......................................................................................................vii
About the Book ....................................................................................................................................... ix
About the Authors ................................................................................................................................... xi
Contents at a Glance .......................................................................................................................... xiii
Sectionwise Referencer ....................................................................................................................... xxxi
List of Rules Referred ......................................................................................................................... xxix
List of Circulars Referred ....................................................................................................................... xl
Table of Cases .................................................................................................................................... xliii
Vol 1
Part I
Direct Tax Laws
Chapter 1
Introduction
[Sections 1 to 4]
1.1 Income Tax Law ........................................................................................................................ 5
1.2 Scheme of Taxation ................................................................................................................. 10
1.3 Important concepts ................................................................................................................... 11
1.4 Method of Accounting [Section 145] ....................................................................................... 68
1.5 Important definitions ................................................................................................................ 68
1.6 Principles and Rules of Interpretation or Construction ............................................................ 75
Chapter 2
Scope of Total Income and Residential Status
[Sections 5 to 9B]
2.1 Definition of Total Income [Section 2(45)] ............................................................................. 84
2.2 Scope of Total Income/Incidence of tax [Section 5] ................................................................ 84
2.3 Need to determine Residential Status? ..................................................................................... 87
2.4 Basic rules for determining residential status of an assessee ................................................... 87
2.5 Rules for determining the residential status of an individual [Section 6]................................. 88
2.6 Residential Status of Hindu Undivided Family (HUF) [Section 6(2)] ..................................... 98
2.7 Residential Status of Firm, Association of Persons (AOP), Body of Individuals (BOI)
[Section 6(2)] and of other persons (excepting companies) [Section 6(4)] ............................ 101
2.8 Residential Status of a Company [Section 6(3)] .................................................................... 101
2.9 Incomes received or deemed to be received in India ............................................................. 109
2.10 Incomes which accrue or arise in India or are deemed to accrue or arise in India
[Section 9] .............................................................................................................................. 112
2.11 Incomes which are deemed to accrue or arise in India [Section 9] ........................................ 116
2.12 Fund management activities not to constitute business connection in India [Section
9A] [W.e.f. A.Y. 2016-17] ..................................................................................................... 157
2.13 Income on receipt of capital asset or stock-in-trade by specific person from specified
entity. [Section 9B inserted w.r.e.f. Assessment Year 2021-22] ............................................ 160
xviii Concise Commentary on Income Tax and International Taxation
2.14 The provisions regarding incidence of tax above may be summarised in the following
table:....................................................................................................................................... 161
2.15 Tax Planning for Residential Status ....................................................................................... 162
Chapter 3
Incomes which do not Form Part of Total Income
[Sections 10, 10AA and 11 to 13B]
3.1 Agricultural Income [Section 10(1)] ...................................................................................... 169
3.2 Sum received by a Member from HUF [Section 10(2)] ......................................................... 169
3.3 Share of Profit of a Partner from a Firm or LLP [Section 10(2A)] ........................................ 170
3.4 Interest on securities or bonds held by a Non-resident/interest on Non-resident
(External) Account [Section 10(4)] ........................................................................................ 170
3.5 Exemption of certain income received by a specified fund [Section 10(4D) inserted]
[W.e.f. A.Y. 2020-21] ............................................................................................................ 171
3.6 Exemption of income of a non-resident as a result of transfer of non-deliverable
forward contracts entered into with an offshore banking unit of International
Financial Services Centre [Section 10(4E)] [Inserted W.e.f. A.Y. 2022-23] ......................... 173
3.7 Exemption of income of a non-resident by way of royalty or interest on account of
lease of an aircraft paid by a unit of an International Financial Services Centre
[Section 10(4F)] [W.e.f. A.Y. 2022-23]................................................................................. 174
3.8 Certain incomes received by a non-resident to be exempt [Section 10(4G) inserted
w.e.f. AY 2023-24] ................................................................................................................ 174
3.9 Capital gains arising from the transfer of equity shares of domestic company, being a
Unit of an International Financial Services Centre as referred to in section 80LA(1A),
engaged primarily in the business of lease of an aircraft to be exempt [Section 10(4H)
inserted w.e.f. AY 2024-25]................................................................................................... 175
3.10 Travel concession or assistance received by an individual from his employer [Section
10(5)] ..................................................................................................................................... 176
3.11 Remuneration to persons who are not citizens of India [Section 10(6)] ................................ 176
3.12 Tax payable on income from leasing of aircraft, etc. [Section 10(6BB)]............................... 177
3.13 Income of foreign companies providing technical services in projects connected with
security of India [Section 10(6C)] .......................................................................................... 177
3.14 Royalty and fees for technical services (FTS) payment by NTRO to a non-resident to
be tax-exempt [Section 10(6D)] [W.r.e.f. A.Y. 2018-19] ...................................................... 177
3.15 Allowances or perquisites outside India [Section 10(7)] ....................................................... 177
3.16 Remuneration under Co-operative Technical Assistance Programmes [Section 10(8)] ........ 178
3.17 Remuneration or fee received by consultants [Section 10(8A) and Rule 16B] ...................... 178
3.18 Remuneration received by foreign employee of the consultant [Section 10(8B) and
Rule 16B] ............................................................................................................................... 178
3.19 Income of the member of the family of an individual referred to in section 10(8),
10(8A) or 10(8B) [Section 10(9)] .......................................................................................... 178
3.20 Death-cum-retirement gratuity received by an employee [Section 10(10)] ........................... 178
3.21 Payment in commutation of pension received by the employees [Section 10(10A)] ............. 178
3.22 Leave Encashment [Section 10(10AA)] ................................................................................ 178
3.23 Compensation on retrenchment [Section 10(10B)] ................................................................ 178
3.24 ayments under Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985 [Section
10(10BB)] .............................................................................................................................. 178
3.25 Exemption for compensation received or receivable on account of any disaster
[Section 10(10BC)] ................................................................................................................ 178
3.26 Amount received on voluntary retirement [Section 10(10C)] ................................................ 179
Detailed Contents xix
3.27 Tax on non-monetary perquisites paid by employer [Section 10(10CC)] .............................. 179
3.28 Amount received under a life insurance policy [Section 10(10D)] ........................................ 179
3.29 Provident Fund [Section 10(11)] ............................................................................................ 185
3.30 Interest and withdrawals from Sukanya Samriddhi Account to be exempt [Section
10(11A)] [W.r.e.f. A.Y. 2015-16] .......................................................................................... 186
3.31 Payments from Recognised Provident Fund [Section 10(12)] ............................................... 186
3.32 Amount payable at the time of closure or opting out of National Pension Scheme to
be exempt to the extent of 60% of the total amount payable [Section 10(12A)] ................... 186
3.33 Tax-exemption to partial withdrawal from National Pension System (NPS) by an
employee [Section 10(12B)] .................................................................................................. 186
3.34 Partial withdrawal from NPS Vatsalya Scheme [Section 10(12BA) inserted w.e.f.
1.4.2026] ................................................................................................................................ 187
3.35 Any payment from an approved Superannuation Fund [Section 10(13)]............................... 187
3.36 Payment received from the Agniveer Corpus Fund to be exempt [Section 10(12C)] ............ 187
3.37 House rent allowance [Section 10(13A)] ............................................................................... 188
3.38 Notified special allowance [Section 10(14)] .......................................................................... 188
3.39 Interest, premium or bonus on specified investments [Section 10(15)] ................................. 188
3.40 Lease rent for leasing of an aircraft [Section 10(15A)] .......................................................... 190
3.41 Income of a foreign company from lease rentals, by whatever name called, of cruise
ships, received from a specified company [Section 10(15B) inserted w.e.f. 1-04-2025] ....... 191
3.42 Scholarships granted to meet the cost of education [Section 10(16)] .................................... 191
3.43 Daily and constituency allowance, etc., received by MPs and MLAs [Section 10(17)] ........ 192
3.44 Award or Reward [Section 10(17A)] ..................................................................................... 193
3.45 Pension received by certain awardees/any member of their family [Section 10(18)] ............ 193
3.46 Exemption of the family pension received by the family members of armed forces
(including para-military forces) personnel killed in action in certain circumstances
[Section 10(19)] ..................................................................................................................... 194
3.47 Annual value of one palace of the ex-ruler [Section 10(19A)] .............................................. 194
3.48 Income of a local authority [Section 10(20)] ......................................................................... 194
3.49 Income of an approved research association [Section 10(21) and Rule 17] ........................... 195
3.50 Income of specified news agency [Section 10(22B)] ............................................................. 196
3.51 Removal of exemption of news agency [Section 10(22B)] [w.e.f. Assessment Year
2024-25] ................................................................................................................................. 197
3.52 Income of Professional association/institutions [Section 10(23A)] ....................................... 197
3.53 Income of armed forces fund [Section 10(23AA)] ................................................................ 197
3.54 Income of certain funds established for welfare of employees and their dependents
[Section 10(23AAA)] ............................................................................................................. 197
3.55 Income of a fund set-up by Life Insurance Corporation of India [Section 10(23AAB)] ....... 199
3.56 Income of society or trust existing for development of Khadi or Village Industries
[Section 10(23B)]................................................................................................................... 199
3.57 Income of an authority known as Khadi and Village Industries Board, etc. [Section
10(23BB)] .............................................................................................................................. 200
3.58 Income of anybody or authority established under any Act for administration of
charity, endowment, etc. [Section 10(23BBA)] ..................................................................... 200
3.59 Income of European Economic Community (EEC) [Section 10(23BBB)] ............................ 200
3.60 Income of SAARC Fund [Section 10(23BBC)] ..................................................................... 200
3.61 Income of the Insurance Regulatory and Development Authority [Section
10(23BBE)] ............................................................................................................................ 200
3.62 Exemption from income of Central Electricity Regulatory Commission [Section
10(23BBG)] ........................................................................................................................... 200
xx Concise Commentary on Income Tax and International Taxation
3.63 Income of Prasar Bharti (Broadcasting Corporation of India) [Section 10(23BBH)
[W.e.f. A.Y. 2013-14] ............................................................................................................ 200
3.64 Income of certain funds of national importance, educational institutions, hospitals,
etc. [Section 10(23C) and Rules 2C and 2CA] ...................................................................... 201
3.65 Refer Chapter on Assessment of Trusts. Income of notified mutual funds [Section
10(23D)]................................................................................................................................. 201
3.66 Exemption to income of a securitisation trust [Section 10(23DA)] [W.e.f. A.Y. 2014-
15] .......................................................................................................................................... 201
3.67 Income of Investor Protection Fund set up by recognized stock exchange [Section
10(23EA)] .............................................................................................................................. 201
3.68 Certain income of Investor Protection Fund set up by commodity exchanges [Section
10(23EC)] .............................................................................................................................. 202
3.69 Exemption to income of Investor Protection Fund of depositories [Section 10(23ED)]
[W.e.f. A.Y. 2014-15] ............................................................................................................ 202
3.70 Exemption to income of Core Settlement Guarantee Fund (SGF) set up by the
recognised Clearing Corporations [Section 10(23EE)] [W.e.f. A.Y. 2016-17] ..................... 202
3.71 Any income of Venture Capital Company or Venture Capital Fund from investment
in a Venture Capital Undertaking [Section 10(23FB)]........................................................... 203
3.72 Income other than income chargeable under PGBP of investment fund [Section
10(23FBA)] ............................................................................................................................ 204
3.73 Proportionate income of PGBP of the investment fund received or receivable by the
unit-holder to be exempt in the hands of the unit-holder [Section 10(23FBB)] ..................... 204
3.74 Income of unit holder from a specified fund to be exempt [Section 10(23FBC)] .................. 204
3.75 Interest received by a business trust from special purpose vehicle [Section 10(23FC)] ........ 204
3.76 Income by way of renting, leasing, etc. of real estate asset owned directly by the real
estate investment trust to be exempt [Section 10(23FCA)] .................................................... 205
3.77 Income of a unit holder received from a business trust [Section 10(23FD)].......................... 205
3.78 Exemption in respect of certain income of wholly owned subsidiary of Abu Dhabi
Investment Authority and of Sovereign Wealth Fund [Section 10(23FE) inserted by
Finance Act, 2020] [W.e.f. A.Y. 2021-22]............................................................................. 205
3.79 Exemption of any income of the nature of capital gains in the hands of a non-resident
or a specified fund, on account of transfer of share of a company resident in India by
the resultant fund [Section 10(23FF) inserted (by Finance Act, 2021) w.e.f. 1.4.2022] ........ 208
3.80 Income of trade union [Section 10(24)] ................................................................................. 209
3.81 Income of trustees of provident fund, gratuity fund, superannuation fund, etc.
[Section 10(25)] ..................................................................................................................... 209
3.82 Income of Employees' State Insurance Fund [Section 10(25A)] ........................................... 210
3.83 Income of a member of Scheduled Tribe residing in certain specified areas [Section
10(26)] ................................................................................................................................... 210
3.84 Income of an individual being a Sikkimese [Section 10(26AAA)] ........................................ 211
3.85 Income of Agricultural Produce Marketing Committee or Board [Section
10(26AAB)] ........................................................................................................................... 212
3.86 Income of corporation of Government or anybody wholly financed by Government
for promoting interest of Scheduled Caste or Tribe or Backward Classes [Section
10(26B)] ................................................................................................................................. 212
3.87 Income of a corporation for promoting the Interest of a Minority Community [Section
10(26BB)] .............................................................................................................................. 212
3.88 Income of a corporation for the welfare, etc., of ex-servicemen [Section 10(26BBB)] ......... 212
3.89 Income of Co-operative Societies for Scheduled Castes or Tribes [Section 10(27)] ............. 212
3.90 Income of certain Boards/Authorities [Section 10(29A)] ...................................................... 213
3.91 Income of Subsidy from Tea Board [Section 10(30)] ............................................................ 213
Detailed Contents xxi
3.92 Income of subsidy from Rubber Board or Coffee Board or Spices Board or any other
Notified Board [Section 10(31)] ............................................................................................ 213
3.93 Income of minor clubbed in the hands of a parent [Section 10(32)] ...................................... 214
3.94 Capital gain on transfer of units of under Scheme, 1964 exempt if transfer takes place
on or after 1.4.2002 [Section 10(33)] ..................................................................................... 214
3.95 Dividend to be exempt in the hands of the shareholders [Section 10(34)] ............................. 214
3.96 Exemption to the shareholder on account of buy-back of shares [Section 10(34A)]
[W.e.f. A.Y. 2014-15] ............................................................................................................ 214
3.97 Dividend income of a unit of any International Financial Services Centre, primarily
engaged in the business of leasing of an aircraft to be exempt [Section 10(34B)
inserted w.e.f. AY 2024-25]................................................................................................... 214
3.98 Income from units to be exempt in the hands of the unit-holders [Section 10(35)] ............... 215
3.99 Exemption of distributed income received from a Securitisation Trust by an investor
[Section 10(35A)] .................................................................................................................. 215
3.100 Long-term capital gain on eligible equity shares exempt if the shares are acquired
within a certain period [Section 10(36)] ................................................................................ 215
3.101 Exemption of capital gains on compensation received on compulsory acquisition of
agricultural land situated within specified urban limits [Section 10(37)] .............................. 215
3.102 Tax incentive for the development of capital of Andhra Pradesh [Section 10(37A)]
[W.r.e.f. A.Y. 2015-16] .......................................................................................................... 216
3.103 Exemption of long-term capital gain arising from sale of shares and units [Section
10(38)] (Not applicable w.e.f. A.Y. 2019-20) ........................................................................ 217
3.104 Exemption of specified income from international sporting event held in India
[Section 10(39)] ..................................................................................................................... 217
3.105 Exemption in respect of grant, etc., received by a subsidiary company from its
holding company engaged in the business of generation, transmission or distribution
of power [Section 10(40)] ...................................................................................................... 217
3.106 Exemption of specified income of certain bodies or authorities [Section 10(42)] ................. 217
3.107 Exemption of amount received by an individual as loan under reverse mortgage
scheme [Section 10(43)] ........................................................................................................ 218
3.108 Exemption of income of New Pension Scheme Trust [Section 10(44)] ................................. 218
3.109 Exemption of Specified income of notified body or authority or Board or Trust or
Commission [Section 10(46)] ................................................................................................ 218
3.110 Exemption to development authorities etc. [Section 10(46A)] [w.e.f. Assessment
Year 2024-25] ........................................................................................................................ 218
3.111 Exemption to National Credit Guarantee Trustee Company Limited or Credit
Guarantee Fund or Credit Guarantee Fund Trust [Section 10(46B) inserted w.e.f. AY
2024-25] ................................................................................................................................. 219
3.112 Exemption of income of an Infrastructure Debt Fund [Section 10(47)] ................................ 219
3.113 Exemption in respect of income received by certain foreign companies [Section
10(48)] ................................................................................................................................... 219
3.114 Exemption in respect of income a foreign company on account of storage of crude oil
in a facility in India and sale of crude oil therefrom [Section 10(48A)] [W.r.e.f. A.Y.
2016-17] ................................................................................................................................. 220
3.115 Exemption of income of Foreign Company from sale of leftover stock of crude oil
from strategic reserves at the expiry of agreement or arrangement [Section 10(48B)]
[W.e.f. A.Y. 2018-19] ............................................................................................................ 220
3.116 Exemption in respect of certain income of Indian Strategic Petroleum Reserves
Limited [Section 10(48C) w.e.f. A.Y. 2020-21] .................................................................... 220
xxii Concise Commentary on Income Tax and International Taxation
3.117 Income of a notified institution established for financing infrastructure and
development to be exempt [Section 10(48D) inserted by Finance Act, 2021 w.e.f.
A.Y. 2022-23] ........................................................................................................................ 221
3.118 Income of a Developmental Financing Institution to be exempt [Section 10(48E)
inserted by Finance Act, 2021 w.e.f. A.Y. 2022-23] ............................................................. 221
3.119 Exemption in respect of income chargeable to equalization levy [Section 10(50)]
[W.e.f. 1.6.2016] .................................................................................................................... 221
3.120 Provisions of section 10AA (not applicable, if the tax is payable under the new
regime, i.e., under Section 115BA/115BAA/115BAB/115BAC/115BAD/ 115BAE) ........... 222
3.121 Incomes which are exempt [Section 13A] ............................................................................. 228
3.122 Exemption of voluntary contribution received by Electoral Trust [Section 13B] .................. 229
Chapter 4
Computation of Total Income
[Sections 14 & 14A]
& Income under the Head "Salaries"
[Sections 15 to 17]
4.1 Heads of Income [Section 14] ................................................................................................ 234
4.2 No deduction allowed for expenditure incurred in respect of exempt income against
taxable income [Section 14A(1)] ........................................................................................... 235
4.3 Computation of Income under the head ‘Income from "Salaries’ .......................................... 242
4.4 Basis of Charge [Section 15].................................................................................................. 250
4.5 Meaning of Salary .................................................................................................................. 253
4.6 Wages..................................................................................................................................... 253
4.7 Annuity .................................................................................................................................. 254
4.8 Retirement benefits ................................................................................................................ 254
4.9 Treatment of Bonus ................................................................................................................ 254
4.10 Salary in lieu of notice period ................................................................................................ 254
4.11 Fee and Commission .............................................................................................................. 254
4.12 Overtime Payments ................................................................................................................ 254
4.13 Meaning and Type of Allowances ......................................................................................... 255
4.14 House Rent Allowance [Section 10(13A) and Rule 2A] (exemption under this section
shall not be allowed, if the employee does not opt to be taxed under old regime) ................. 255
4.15 Prescribed allowances which are exempt to a certain extent [Section 10(14)] ...................... 258
4.16 Treatment of Entertainment Allowance (Not to be allowed, if the employee does not
opt to be taxed under old regime) .......................................................................................... 260
4.17 Allowances which are exempt in case of certain persons ...................................................... 261
4.18 Allowances which are fully taxable ....................................................................................... 261
4.19 What are perquisites? ............................................................................................................. 261
4.20 Definition of "Perquisite" as per Section 17(2) ...................................................................... 262
4.21 Perquisites which are taxable in the hands of all categories of employees ............................ 265
4.22 Perquisites which are taxable only in the case of specified employees .................................. 266
4.23 Rent free accommodation or accommodation provided at concessional rate [Rule
3(1)](Applicable w.e.f. A.Y. 2024-25)................................................................................... 267
4.24 Valuation of monetary obligation of the employee discharged by the employer ................... 272
4.25 Valuation of Life Insurance premium/deferred annuity premium paid/ payable by the
employer ................................................................................................................................ 273
4.26 Value of any specified security or sweat equity shares .......................................................... 273
4.27 Contribution to an approved superannuation fund (Applicable upto A.Y 2020-21) .............. 275