Any benefit or perquisite arising from exercise of business or profession shall be taxed under the head “Profits and Gains from Business or Profession”(PGBP).
Only those capital receipts would be taxable under the Income Tax Act,1961 which are expressly provided under the definition of term "income" under section 2(24) of the Act.
Concept of Inseparable Letting under Income Tax Act, 1961
The head "Income from house property" is one of the significant heads of income while determining the total income of a taxpayer. This head is a notional head of income.
The term "Capital Employed" means the aggregate of the issued share capital, debentures and long-term borrowings, as on the last day of the previous year in which the business of the company commences.
One of the salient features of section 44AD is that the deduction under section 30 to 38 shall be deemed to have been allowed.
Annual value of house property shall be assessed under this head even if assessee is not in receipt of actual rent income. And such annual value shall be determined in accordance with section 23 of the Act.
Whether the Capital Receipts which are not of recurring nature and more particularly of exceptional nature would fall within the meaning of Income?
Liability to deduct tax at source under section 194A, 194C, 194H, 194I and 194J was first introduced by the Finance Act, 2002 by inserting various proviso to the respective sections.Proviso to section 194A(1), Proviso to Section 194C(1), Second Proviso to 194H(1), Second Proviso to Section 194I(1), Second Proviso to 194J(1) were inserted by Finance Act, 2002 w.e.f. 01-06-2002
Kind Attention: Students of CA (Final) appe