Taxation Issues For Entrepreneurs

TAXATION ISSUES FOR ENTREPRENEURS
by :
DR. T.K. JAIN
AFTERSCHO☺OL
centre for social entrepreneurship
sivakamu veterinary hospital road
bikaner 334001 rajasthan, india
FOR – PGPSE / CSE PARTICIPANTS
mobile : 91+9414430763
5 DECEMBER 09 www.afterschool.tk 1
study material of PGPSE / CSE
My words....
Ours is a great country with immense entrepreneurial potential. However,

our legal system and taxation system is so cumbersome that our creativity
and talent is wasted / unnecessarily diverted in these sectors. I wish that
these are simplified so that an ordinary entrepreneur can understand these
without help from any expert. Here I present a few basic questions for
fundamental understanding of taxation system in India. I wish that more
people should become entrepreneurs. An ordinary Indian entrepreneur
wishes to remain an honest entrepreneur and contribute to the development
of nation, but our systems and processes ...
Can a transferor transfer income without
tranferring the asset or transfer the asset and
keeps the income for himself ?
Where a person transfers to any other person

income (whether revocable or not) from an
asset without transferring that asset, the income
shall be included in the total income of the
transferor.
If the transferor transfers the asset and keeps
the income for himself, the income shall be
included in the income of transferor.
Can a person make revokable
transfer?
Where a person transfers any asset to any other

person with a right to revoke the transfer, all
income accruing to the transferee from the
asset shall be included in the total income of
the transferor.
Income of a minor
All income which arises or accrues to the

minor child (not being a minor child suffering
from any disability of the nature specified in
Section 80U) shall be clubbed in the income of
his parent.
Income of life partner
Where a person transfers some assets directly

or indirectly to a person or association of
persons (trustee or body of trustees or juristic
person) without adequate consideration for the
immediate or deferred benefit of his or her
spouse, all such income as arises directly or
indirectly from assets transferred shall be
included in the income of the transferor.
What is cash credit ?
Where any sum is found credited in the books of an

assessee maintained for any accounting year and the
assessee is not in a position to offer explanation about
the nature and source thereof or the explanation offered
by him is not satisfactory in the opinion of the
Assessing Officer, the sum so credited may be treated as
the income of the assessee in respect of the accounting
year in which the cash credits are found to have made in
the books (sec 68)
What are exception to set off ?
Loss from Speculation Business

Loss from the activity of owning and
maintaining race horses
long-term capital loss can be set off only
against long-term capital gain.
Are Jain families also HUF?
Jain and Sikh undivided families are also

treated as Hindu undivided families
If a Hindu converts to christianity,
is his family still HUF ?
No
If a Hindu gets converted as a Christian, the
family of such a person will not be an HUF.
However a Hindu, along with his son (by a
christian wife) who has been brought up as a
Hindu will be a HUF
Can we have an HUF within
HUF?
YES
A HUF may consist of a number of smaller
HUFs. A smaller HUF has a legal existence
and may be assessable as an independent unit
What are the schools in Hindu
Law ?
HUFs are governed by two schools viz.

Mitakshara and Dayabhaga.
Can a son demand partition in
HUF ?
A Mitakshara son, in whom the interest in

family property is vested by birth, all along
possesses a right to demand partition. A
Dayabhaga son, on the other hand acquires no
interest in the family property by birth and,
consequently, has no right to demand partition
of the HUF property from his father.
Is there any impact on carry
forward of losses in case of death
of partner in a partnership firm ?
Yes
Where a change has occurred in the constitution of a
firm on account of death or retirement, the firm is not
entitled to carry forward and set off so much of the
loss proportionate to the share of a retired or deceased
partner as exceeds his share of profits, if any, in the
firm in respect of the previous year.
Gautam is employed in Delhi. His basic
Salary is Rs. 5,000 per month. He receives
Rs. 5,000 p.a. as house rent allowance. Rent
paid by him is Rs. 12,000 p.a. Find out the
amount of taxable house rent allowance.
As per rule 2A :
least of the following :
1. Rs. 5,000 (actual HRA)
2. Rs. 6,000 (being excess of rent over 10% of salary)
3. Rs. 30,000 (in Delhi, so one-half of the salary of the
assessee).
Least is 5000
Mr. X is the owner of a house property. He lets this
property during the previous year 2007-08 for Rs.
7,000 p.m. The house was occupied from 1.4.2008 to
31.1.2009. From 1.2.2009 it remained vacant. Mr. X
fails to realize Rs. 10,000 from the tenant. The
Expected rent of the house is Rs. 80,000 p.a.
Higher of (expected rent or actual rent) = 80000

less : loss due to vacancy (but it must be more than or
equal to actual rent received) (80000 – 14000) = 66000
gross annual value = 66000
Mr. R. owns a house. The Municipal value of the
house is Rs. 74,000. He paid Rs. 8,000 as local taxes
during the year. He uses this house for his residential
purposes but lets out half of the house @ Rs. 3,000
p.m. Compute the annual value of the house.
Higher of annual value / municipal value : (74000 or
(12*6000) = 74000
less municipal taxes = 8000
net = 66000
less 50% for SOP (self occupied property) = 33000
less standard deduction 11000
net value : 22000 : answer
M is the owner of a house. The municipal value of
the house is Rs. 40,000. He paid Rs. 8,000 as local
taxes during the year. He was using this house for
his residential purposes but let out w.e.f. 1.1.2009
@ Rs. 4,000 p.m. Compute the annual value of the
house.
Higher of municipal value / fair rent

(40000 or 48000) = 48000
less municipal tax 8000
gross value 40000
vacancy allowance = nil
standard deduction = 13333
net value = 26667
Which of these will you include in
calculation of salary for the
purpose of valuation of house
property?
Salary , Entertainment Allowance Bonus Dearness
Allowance (not recognised for computing retirement
benefit) Employer’s contribution to provident fund
(recognised) Education Allowance for one child Lunch
Allowance (Rs. 1000 per month)
answer : salary+bonus+entertainment allowance+lunch
allowance
What is salary for entertainment
allowance ?
Basic Salary exclusive of any allowance,

benefit or other perquisite.
What is salary for valuation of
Rent-free House or Concession in
rent?
Salary + all taxable alloance + bonus etc.

(excluding bonus – if it is not part of retirement
benefit)
What is salary for HRA ?
Basic + DA (if part of contract for

employment) + commission
What is salary for gratuity ?
Basic Salary, D.A. (if given under the terms of

employment) and Commission based on fixed
percentage of turnover.
(It does not include bonus, other commission,
H.R.A. over-time wages and any other
allowance and perquisites.)
If the employee is covered by the Gratuity Act,
D.A. will always be included in salary.
What is salary for Determi-nation
of Rs. 50,000 regarding taxability
of perquisites u/s 17(2)(iii)(c)
Basic Salary, Dearness Allowance, All other

taxable allowances, benefits received in cash,
Bonus, Commission, etc. and all monetary
payments
What is salary for Compensation
u/s 10(10B)
Salary, allowance, value of rent-free or

concessional accommo-dation light, water or
any other amenity and travel concession;
(it does not include Bonus, Gratuity employer’s
contribution to any fund for retirement
benefits.)
Jai works for Government of
Rajasthan. He gets earned leave
of Rs. 2,00,000. How much is tax
free ?
100% x \
Medical expenses reimbursed by employer:
Rs. 7,200 for the period from 1/4/ 2010 to
30/4/10. Is it tax free ?
Yes
(upto Rs. 15000 in one year)
Mr. Anand and his family also availed LTC -
they visited Mumbai and the expenses of Rs.
5,600 being the cost of air conditioned second
class rail tickets was reimbursed by the
employer.
It is tax free (we assume that other conditions

are fulfilled)
(rule 2b and sec. 10(5) )
The employer provides Ravi a car
for personal purposes and
expenses are incurred by the
employer amounted to Rs. 9,900.
It is taxable
there is no tax exemption here
Employer of A made payment of club bills to the
extent of Rs. 3600 for the year. Is it tax free ?
No
however, if it is proved that this club
membership was for office purpose only then it
will be tax free
An employee having his own
house was given HRA is it taxable
?
Yes
Mr. Ajay received Rs. 1,50,000 as gratuity.
He is not covered by the Payment of Gratuity
Act. He worked for 20 years and 9 months
and the average salary for last 10 months has
been 20000.
The least of the following is taxfree :

1. 20*20000 * ½ = 200000
2. 3.5 lakhs
3. actual gratuity amount = 1.5 lakhs
Is hill allowance taxable ?
Yes,
It is given to employees working in hilly areas
on account of high cost of living in hilly areas
as compared to plains. It is fully taxable, if the
place is located at less than 1,000 metres
height from sea level.
Is group medical insurance of
employees taxable in salary
head ?
No
it is tax free
Group medical insurance obtained by the
employer for his employees (including family
members of the employees) or all medical
insurance payments made directly or
reimbursement of insurance premium to such
employees who take such insurance.
Are reimbursement of medical
expenses taxable ?
They are tax free upto a limit

Reimbursement of medical expenses actually
incurred by the employee upto a maximum of
Rs. 15,000 in the aggregate.
Is reimbursement of travel and
stay expenses abroad tax free ?
Yes, but only when the employee’s gross total

income reimbursement of this expenditure does
not exceed two lakh rupees
Is recreational facility tax free ?
Yes
The value of recreational facilities provided is
exempt. However, the facility should not be
restricted to a selected few
Is value of free rations given to
the armed forces personnel
taxfree.
Yes
Is the amount spent by an
employer on the promotion of
family planning amongst its
employees tax free?
yes
Are privilege ticket orders granted
by Railways to its employees tax
free?
Yes
Are Sum paid by an employer to
pension or deferred annuity
scheme taxfree?
Yes
Is Rent-free furnished residence provided to
an Officer of Parliament / Union Ministry /
leader of opposition in Parliament tax free?
Yes
Is Interest free loan to an
employee tax free?
Yes but Only if the amount of loan does not

exceed Rs. 20,000/-.
a professional jockey receives
present from his employer on
winning the race – is it taxfree?
No
Are legal charges incurred by the
employer to defend the employee
taxable ?
Yes
even if the legal charges are related to work
performed during employment
Are payments made by employer
of any loan due to the employee
taxfree.
No
Are reimbursement of tuition fees
of the children of the employee
taxfree?
Only upto Rs. 100 per month per child (for 2

children)
Is payment (by employer) of club
bills of the employee taxfree ?
No
Is payment (by employer) of hotel
bills of the employee taxfree?
No
Is income-tax paid by the
employer due from the employee
taxfree?
No
Is the value of recreational
facilities provided taxfree?
Yes
What will be the income under the
head salary from the following :
Basic : Rs. 20000 per month
DA : 50% of basic
Bonus : 8% of basic + DA
Commission : 1% of sales, commission = Rs. 100000
HRA : 30% of basic
Free telephone, mobile, car facility is provided to employee.
Education expenses of his two sons (Rs. 10000 per annum) is borne
by employer. He is also provided 1 LTC in 4 years.
Solution :
Basic : 20000*12 = 2,40,000

DA : 1,20,000
Bonus : = 28,800
commission = 1,00,000
HRA is tax free upto 40% or 50% of basic + DA = nil
all other perquisites are tax free, so they will not be taxed.
Total salary = 488800 answer
An employee is a director of a company. He
also has 12% of the shares of the company.
Will his salary be a salary of income from
business and profession ?
Yes, it will be salary as he is getting it as salary

for working in a company
Calculate salary from the
following information :
Sitting fees Rs. 20000
Non-practising allowance : Rs. 24000
Hill allowance : Rs. 10000 (the place 800
meter high)
Technical journal allowance Rs. 5000
solution :
20000+24000+10000 = 54000
technical journal allowance is tax free
A company provides free lunch
facility to company. It costs Rs.
40 per lunch. Is it taxable as
perquisite?
No
Upto Rs. 50 is tax free
A company provides free
transport facility to office and
home. Is it taxable ?
Tax free
Example :
For the financial year 2008-09, ‘A’, a Central Government Officer

receives salary of Rs. 77,000 (including dearness allowance of Rs.
42,000) and entertainment allowance of Rs. 18,000. His contribution
to provident fund during this period is Rs. 7,200. In addition, he has
purchased National Savings Certificates (VIII Issue) for Rs. 6,000.
He has been provided with accommodation by the Government for
which the rent determined is Rs. 375 per month and this is recovered
from A’s salary. Compute A’s tax liability for the assessment year
2009-10 assuming that he has no other income.
Solution ..
Salary+ DA is taxable : 77000
entertainment allowance :
(exemption 1/5 or 5000, for govt. Employee)
(18000-5000) = 13000
contribution to PF and NSC is allowed as
deduction in 80C : 13200
taxable income : 90000 – 13200
=76800, which is tax free.
What are Sections 15 to 17 of
income tax about ?
Salary
Income tax about ?
Income from house property
What are Sections 28 to 44D of
Income tax about ?
Profits and gains of business or profession
What are Sections 45 to 55A of
income tax about ?
Capital gains
Income tax about ?
Income from other sources
Where can we include the income
of official liquidator?
An official liquidator appointed by the Court or

by the Central Government is also become an
employee of the Central Government under
Section 448 of the Companies Act, 1956 and
consequently the remuneration due to him
would also be assessable under the head
‘Salaries’.
if an employee receives any money from his
employer as part of the terms of employment for not
carrying on any profession, where will go as per
income tax ?
Salary
Where will you put personal gifts received by the
employee from his own employer on account of the
personal regard or love and affection for income tax
purpose ?
It is tax free
What should we take as salary –
amount actually received or gross
amount ?
Gross amount
any tax deducted at source or other deductions
on account of provident fund, insurance
premium, or on any other account made by the
employer from the salary income, should be
added to the net salary received by the
employee.
The employer becomes insolvent
and therefore salary remains
outstanding for an employee. Is he
still liable to pay tax ?
Yes
Salary is taxable even if the money is not
received or could not be recovered from the
employer due to his insolvency or any other
reason
A payment in appreciation of
personal qualities is a salary or
not, it is made by employer ?
No it is not salary
Raju is employed in a Gas supply
company, the company supplies
free gas to Raju, is it taxable ?
Yes
it is taxable at cost to the employer
Are the following facilities taxable to a non-
specified employee : free sweeper, gardener,
cook, lunch, car facility ?
No
Are the following facility taxable to a non-
specified employee :Rent free house?
Rent Free house is taxable in the hands of all

the assessees
How much exemption is provided
for Compensation received by a
workman under the Industrial
Disputes Act, 1947 ?
Rs. 50000 (the limit may change as per govt.

Notification)
An employee gets commuted
pention, he also receives gratuity,
how much is tax free ?
(Assuming it to be a non-government
employee)
one-third of the pension which he is normally
entitled to receive
Can a firm avoid income from
housing property by transferring it
to individuals ?
No
If a firm transfers its house property to its
partners, before dissolution, merely by book
entries, annual value of the property is taxable
in the hands of the firm
Can an individual have
concession for self occupied
property for two houses?
No
Where the assessee has occupied more than
one house for the purposes of residence for
himself and family members, he has to make a
choice of one house only in respect of which
he would like to claim exemption. Other self-
occupied houses will be treated as if they were
let out
Can depreciation be claimed in
respect of leased assets ?
No
Depreciation is allowable to the assessee only
in respect of those capital assets which are
owned by him.
What is the difference between
salary and wages ?
‘Salary’ is generally used in respect of

payment for services of a higher class, whereas
‘wages’ is confined to the earnings of
labourers. However, for income-tax purposes
there is no difference between salary and
wages.
What is pension ?
Pension is a periodical payment for past

services.
What is annuity ?
Annuity is annual grant made by the employer

to the employee.
What is gratuity ?
Gratuity is a lump sum payment for past

services.
What is perquisite ?
Any gain or profit incidentally made from

employment in addition to the regular salary /
wages / remuneration.
What are tax-free perquisites ?
Medical benefits
tea, snacks
residetial accommodation at site
reimbursement of mobile / telephone bills
employer's contribution to staff insurance
scholarship to children of employee
interest free or concessional upto 20000
journal / periodicals related to work
refresher courses/ training
laptops / computers
What are taxable perquisites ?
Rent free accommodation (sec. 17(2)(i))
residential accommodation
club membership
payment of loans of employees
payment of educational expenses of employee
domestic servant
interest free loan / concessional interest loan
What is the difference between
revenue and capital receipt ?
An amount referable to fixed capital is a capital

receipt whereas a receipt referable to
circulating capital would be a revenue receipt
Only revenue receipt is taxable in income tax
and only revenue expenditure is allowed
If you receive any compensation
on cancellation of a contract, is it
a capital receipt ?
compensation received for the loss of a capital

asset is a receipt of a capital nature whereas the
compensation received for damage to or loss of
a trading asset is a revenue receipt.
What type of receipt is
commutation of service or
insurance amount received?
a lump sum payment received in commutation
of salaries or pension is a capital receipt,
However, it would be taxable as salary income.
Any amount received under a policy of
insurance would be a revenue receipt if the
policy was held by the assessee as a trading
asset and it would be a capital receipt if the
policy was held as a capital asset.
Will it be taxable for a debenture holder : the
premium received on redemption or the discount on
issue of the debentures by the company
No,
It would be a capital receipt and would not
consequently be liable to tax
Royalty received by a mine owner
shold be income from business
and profession – is it true ?
No
Royalties in every case are taxable as ‘income
from other source
Compensation received on
cancellation of agency should be a
capital receipt, so it should not be
taxed – is it true ?
No
it is taxable as business income by virtue of the
specific provision in Section 28 of the Act
An employee director of a company was paid
Rs. 7,50,000 as a lump sum consideration for
not resigning from the directorship. Should it
be taxed ?
It is a reward received from the employer.

Therefore it is a revenue receipt.
the sales-tax collected from the
buyer of goods is a capital receipt.
- it is true ?
No
the sales-tax collected from the buyer of goods
is a revenue receipt.
Receipt in substitution of a source
of income is a capital receipt – is
it true ?
Yes
If you have spent money on training of production
manager abroad to study new methods of
production- is it a revenue expenditure
Yes
Amount spent by a company for sending its
production manager abroad to study new
methods of production is a revenue
expenditure
What will be the date of receipt –
the date of cheque / date of
encashment ?
If the payment is made by the drawee on

presentment of the cheque, the date of receipt
of the cheque and not the date of its
encashment shall be the date of receipt.
How will you determine the place
of receipt of some payment ?
If the postal expenses are borne by the creditor,

the place of debtor would be place of receipt.
If, on the other hand, the debtor bears the
postal expenses, the place of creditor would be
the place of receipt.
What will be the Date and place
of receipt in case of articles sent
by V.P.P.
In this case the place of the delivery by the

Post Office would be the place of receipt and
the date of receipt would be the date of
payment by the buyer.
What are the incomes deemed to
be received ?
All sums deducted by way of taxes at source (Section 198).

Incomes of dependent persons which are included in the income
of the assessee under Sections 60 to 64.
unexplained or unrecorded investments (Section 69).
unexplained or unrecorded moneys. (Section 69A)

Where does income acrue – at
your registered office or at the
place of contract ?
Income accrues at the place where the source
of the income is situated, which may or may
not be the same as the place from which the
business activities are carried on. Normally,
income accrues at the place where the contract
yielding the income is entered into and for this
purpose the contract should be taken to have
been entered into at the place where the offer is
accepted
What part of income of business of which
all the operations are not carried out in
India, will be deemed as income arising
out in India
in the case of a business of which all the

operations are not carried out in India, only
such part of the income as is reasonably
attributable to the operations carried out in
India is deemed to have arised in India

What is relation between business
connection and income ?
Income arising through or from business

connection to any assessee is deemed to accrue
or arise in India where a business connection
actually exists

What is business connection?
a branch office, factory, agency, receivership, management or other
establishment for the purchase or sale of goods or for transacting any
other business
a factory where goods are made for export outside India
agent or agents in India for the systematic and regular purchase of
raw materials or for the sale of the non-residents' goods
a close financial association between a resident and a non-resident
company
a subsidiary company to sell or otherwise deal with the products of
the non-resident parent company
a continuing licence to a non-resident
What are the cases when income is assessed in the
same year when it accrues ?
Assessment of non-residents in respect of their income from shipping

business (Section 172).
Assessment of persons leaving India (Section 174).
artificial juridical person formed for a particular event or purpose
(section 174A).
persons trying to alienate their assets with the object of avoiding
liability to tax (Section 175).
Assessment of the income from discontinued business (Section
176).

Can tax be levied when it appears to the Assessing
Officer that an individual may leave India during
the current assessment year without any intention of
returning to India
Yes

Suppose your employer
reimburses your expenses
(incurred for office work) is it
taxable ?
No
Mere relief or reimbursement of expenses is
not treated as income.

If an employer gives goods
instead of salary, how can its
value be identified for tax purpose
?
If income is received in kind, its valuation will
be made in accordance with the rules
prescribed in the Income-tax Rules, 1962.
Where there is no prescribed value in the rules,
valuation thereof is made on the basis of its
market value.

If a person buys and sells a crop,
is it agricultural income ?
If a person purchases a standing crop, and

makes a profit out of it, the income is not
agricultural income to the buyer of the standing
crop. The income to the seller of standing crop,
who has put in labour and skill to make the
crop sprout out of the land, is agricultural
income.
What are the cases when
operations on agricultural produce
is also treated as agricultural
income ?
The operation must be one which is ordinarily employed by
the cultivator to make the produce fit for market, i.e., threshing,
winnowing, cleaning, drying, etc.
There is no market for the produce as received from the farm.
The process to make it marketable has been performed either by the
cultivator or receiver of rent-in-kind.
The produce must not change its original character.

Can income tax assessment be
postponed in the event of dispute
regarding income ?
No
Income-tax assessment cannot be held up or
postponed merely because of existence of a
dispute regarding the title of income.

What is ‘carry-over’ concession in
the case of LTC ?
If travel concession or assistance is not availed

during any of the four year block period,
exemption can be claimed provided he avails
the concession or assistance in the calendar
year immediately following that block

Can a person claim taxi fare for
visit on LTC ?
No
air -economy class
or AC rail first class
or first class by public transport
is permitted

Is tiffin allowance taxable ?
Yes
It is given for lunch and refreshments to the
employees. It is taxable.

Is servant allowance taxable ?
Yes
It is fully taxable even if it is given to a low
paid employee, not being an officer, i.e., it is
taxable for all categories of employees.

Is non practicing allowance
taxable ?
Yes
It is generally given to those medical doctors
who are in government service and they are
banned from doing private practice. It is to
compensate them for this ban. It is fully
taxable.

Is hill allowance taxable ?
Yes
It is given to employees working in hilly areas
on account of high cost of living in hilly areas
as compared to plains. It is fully taxable, if the
place is located at less than 1,000 metres height
from sea level.

Is overtime allowance taxable ?
When an employee works for extra hours over

and above his normal hours of duty he is given
overtime allowance as extra wages. It is fully
taxable.

Is deputation allowance taxable ?
Yes
When an employee is sent from his permanent
place of service to some other place or
institution or organisation on deputation for a
temporary period, he is given this allowance. It
is fully taxable.

Is warden allowance taxable ?
Yes
These allowances are given in educational
institutions for working as Warden of the
hostel and/or working as Proctor in the
institution. These allowances are fully taxable.

Vehicle provided to travel from
place of work to home is taxable
or not ?
No
use of any vehicle provided by a company or
an employer for journey by the assessee from
his residence to his office or other place of
work, or from such office or place to his
residence, is not be regarded as a benefit or
amenity granted or provided to him free of cost
or at concessional rate for the purpose of
computation of perquisite.
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Taxation Issues For Entrepreneurs

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TAXATION ISSUES FOR ENTREPRENEURS

Ours is a great country with immense entrepreneurial potential. However,

Where a person transfers to any other person

Where a person transfers any asset to any other

All income which arises or accrues to the

Where a person transfers some assets directly

Where any sum is found credited in the books of an

Loss from Speculation Business

Jain and Sikh undivided families are also

HUFs are governed by two schools viz.

A Mitakshara son, in whom the interest in

Higher of (expected rent or actual rent) = 80000

Higher of municipal value / fair rent

Basic Salary exclusive of any allowance,

Salary + all taxable alloance + bonus etc.

Basic + DA (if part of contract for

Basic Salary, D.A. (if given under the terms of

Basic Salary, Dearness Allowance, All other

Salary, allowance, value of rent-free or

It is tax free (we assume that other conditions

The least of the following is taxfree :

They are tax free upto a limit

Yes, but only when the employee’s gross total

Yes but Only if the amount of loan does not

Only upto Rs. 100 per month per child (for 2

Basic : 20000*12 = 2,40,000

Yes, it will be salary as he is getting it as salary

For the financial year 2008-09, ‘A’, a Central Government Officer

Income from house property

Profits and gains of business or profession

Income from other sources

An official liquidator appointed by the Court or

Rent Free house is taxable in the hands of all

Rs. 50000 (the limit may change as per govt.

‘Salary’ is generally used in respect of

Pension is a periodical payment for past

Annuity is annual grant made by the employer

Gratuity is a lump sum payment for past

Any gain or profit incidentally made from

An amount referable to fixed capital is a capital

compensation received for the loss of a capital

It is a reward received from the employer.

If the payment is made by the drawee on

If the postal expenses are borne by the creditor,

In this case the place of the delivery by the

All sums deducted by way of taxes at source (Section 198).

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in the case of a business of which all the

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Income arising through or from business

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Assessment of non-residents in respect of their income from shipping

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If a person purchases a standing crop, and

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If travel concession or assistance is not availed

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