OUR OWN PUBLICATION FROM 1ST JULY, 2018 FOR B.COM

1. B.COM FIRST SEMESTER COMPLETE NOTES (CHOICE BASED) WITH SOLVED FINANCIAL ACCOUNTING BOOK
2. B.COM 3RD SEM COMPLETE NOTES WITH SOLVED BOOKS OF:
*ADVANCED FINANCIAL ACCOUNTING
*BUSINESS STATISTICS SOLVED PAPERS OF LAST 7 YEARS
* FINANCIAL MANAGEMENT BOOK
3. B.COM 5TH SEMESTER COMPLETE NOTES WITH SOLVED BOOKS OF MANAGEMENT ACCOUNTING OF JAIN AND NARANG

Friday, November 08, 2013

Classification of Income As Per Income tax Act, 1961

Q. Explain the concept of Indian Income as per Income tax Act, 1961.
Ans: Indian Income is called by various words and names. These are:
a)      Income received in India
b)      Income deemed to be received in India
c)       Income accrued or deemed to be accrued in India

Income Received in India
The receipt of income refers to the first occasion when the recipient gets the money. Transmission of amount after receipt to other place does not result in receipt.
Income deemed to be received in India [Section 7]
Ø  Contribution by employer to RFP in excess of 12% of the salary.
Ø  Interest credited to RPF in excess of 9.5% of salary.
Ø  Transferred balance from URPF to RPF.
Ø  Contribution to notified pension scheme under sec. 80CCD.
Income which are deemed to accrue or arise in India [Section 9]
a)      Income from a business connection in India. [Sec-9(1) (i)]. In case of a NRI the following shall not be treated as business connection in India:
ü  Purchase of goods for the purpose of export.
ü  Collection of news and views for transmission outside India.
ü  Shooting of cinematograph films in India if such nonresident is not a citizen of India.
b)     Any income accrue or arise to an assessee through or from any property , asset or source of income in India[Sec-9(1)(i)]
c)      Any income accrues or arises to an assessee through transfer of capital asset situated in India. [Sec-9(1)(i)]
d)     Income from Salaries earned in India or which is payable by the government to  citizen of India for service rendered outside India  [Sec-9(1)(ii) & (iii)]
e)      Dividend paid by Indian Company outside India. [Sec-9(1)(iv)]
f)       Interest payable by:
ü  Government
ü  A person who is a resident in India except where payment is made on money borrowed for business or profession carried on outside India.
ü  A person who is a non resident in India provided where payment in made on money borrowed for business or profession carried in India.
g)      Royalty Payment fees for technical services by government or resident person[Sec-9(1)(vi)]
ü  Government
ü  A person who is a resident in India except where payment is made for business or profession carried on outside India.
ü  A person who is a non resident in India provided where payment is made for business or profession carried in India.
h)     Fees for technical services by government or resident person[Sec-9(1)(vii)]
ü  Government
ü  A person who is a resident in India except where payment is made for business or profession carried on outside India.

ü  A person who is a non resident in India provided where payment is made for business or profession carried in India.