Contents

Preface to the 21st Edition

ABC of Zero Income Tax
Academic and Professional Pursuits Allowance
Accumulated Balance of Recognised Provident Fund
Additional Conveyance Allowance
Agricultural Income
Agricultural Land: Sale of
Agricultural & Processed Food Products Export
Development Authority
Agricultural Produce and Market Committees Entitled to Exemption
Allowances Outside India Received by Employee
Amount Collected under Deposit Scheme
Amount Collected under Molasses Control Order
Amount Debited for Defective Plant
Amount Received by Partner on Reduction of his Share Capital
Amount Received for Future Services not to be Taxed
Amount Received from H.U.F.
Amount Received on Voluntary Retirement Entitled
to Exemption and Relief
Amount Received under Superannuation Fund
Amount Received on Pre-mature Retirement from
Superannuation Fund
Amount Received on Termination of Distributorship
Annual Subscription Fees by Trade / Professional Association, etc.
Annual Value of one Palace of a Ruler
Annuity in Perpetuity of Compensation
Award Instituted by Government
Bio-degradable Waste
Board and Lodging of Foreign Nationals
Bonus Share
Broadband Service Providers
Business Trust Income
Business Trust-Interest Income
Capital Gains on Amalgamation of Company
Capital Gains on Compensation or Compulsory
Acquisition of Urban Agricultural Land Section 10(37)
Capital Gains on Conversion of a Partnership Firm or
an Association of Persons or Body of Individuals to a Company
Capital Gains on Conversion of a Proprietorship
Concern into a Company
Capital Gains on Demerger of Companies
Capital Gains on the Sale of Agricultural Land
Capital Gains on the Sale of a Farm House
Capital Gains on the Sale of a Residential House
Capital Gains on Sale of any Other Capital Asset
Capital Gains on Securities and Mutual Funds Long-term
Capital Gains on Transfer of a Capital Asset by a Parent
Company to a Subsidiary Company and Vice Versa
Capital Gain Tax Exemption to facilitate de-mutualisation
and Corporatisation of Stock Exchange
Capital Receipts
Casual Income
Charitable Trust or Institution's Income
Chit Fund Income
Clean Ganga Fund
Coffee Board
Cold Chains
Commercial Production of Mineral Oil in North-Eastern Region
Commutation of Pension
Compensation Amounts
Compensation for Acquisition of Property
Compensation for Compulsory Cessation of Business
Compensation for Delay in Procuring Capital Assets
Compensation for Early Termination of Lease
Compensation for Forfeiture or Waiver of Lease
Compensation for Immobilisation
Compensation for Job Discrimination
Compensation for Loss of Business Property
Compensation for Loss of Earnings
Compensation for Loss of Source of Income
Compensation for Non-performance of Contract of Tenancy
Compensation for Partial Loss of Profit-making Apparatus
Compensation for Premature Termination of a Financing Agreement
Compensation for Premature Termination of Agency
Compensation for Relinquishment of Interest in Partnership
Compensation for Surrendering Leasehold Rights in Property
Compensation for Suspension of Export Licence
Compensation for Wrongful Detention of Money or Property
Compensation from Insurance Company for Partial
Damage of Machinery
Compensation in Terms of Compromise Decree
Compensation on Account of Any Disaster
Compensation Paid for Loss of Agency
Compensation Received by Lessee for Acquisition of Land
Compensation Received under Voluntary Retirement Scheme
Entitled to Exemption as well as Relief under Section 89(1)
Compensation to Partner for Abandonment of his Rights
Compensation to a Workman
Conditional Grant
Conducting Coaching Classes and Charging of the Fees
Core Settlement Guarantee Fund
Consideration for Destruction of Empty Bottles
Consideration for Relinquishment of Interest in Partnership
Consideration Received for Vacating Premises
Constituency Allowance of MLAs
Contribution to National Urban Poverty Eradication Fund
Conveyance Allowance Received by Employees
Corporation for Welfare of Ex-Servicemen
Corporation to Promote Interests of Scheduled Tribes
Cross Country Natural Gas Distribution Network
Daily Allowance Received by Employees
Daily Allowances Received by MPs and MLAs
Daily Allowance Received by Foreign Technicians
Damages for Personal Injury
Deduction for Hospitals
Demurrage for Delay in Loading Goods
Development of Cities, Towns and Villages Income from
Distributed Income to Unit holders
Diversion of Income by Overriding Title, etc.
Dividend Income
E.O.U.
Educational Institution's Income
Enterprise for Development of Infrastructure Facility
Enterprises Generating or Generating and Distributing Power
Entrance Fees and Forfeited Amounts from Members
Evidence for Exempting Leave Travel Concession
Excess Amounts Collected from Buyers on Sale of Levy Sugar
Exchange Risk Premium
Excise Amount Collected
Exemption of Capital Gains on Transfer of a Membership
Right of Stock Exchange
Ex-gratia Payment on Abolition of Privy Purse
Expenditure to Ward Off Competition
Expenses on Telephone and Mobilephone
Expenditure in relation to Exempted Income
Export Profits
Export Promotion Corpus Amount
Family Pension of Gallantry Awardees
Family Pension of Armed Forces
Farm House Sale Proceeds
Fees for Technical Services
Feasibility Report Prepared in USA for Resident Public
Sector Undertaking
Foreign Company's Income from Royalties and
Technical Service Fee
Foreign Company's Income with Government Approval
Foreign Income of a Non-resident Indian
Foreign Technician
Forfeiture of Earnest Money and Advance by Vendor
Free Trade Zone Industrial Undertakings
Gifts
Gifts not Assessable as Deemed Dividend
Gold Deposit Bonds
Gratuity
Grant-in-aid for Cinema Theatre
Gurudakshina by R.S.S. from Swayam Sevaks
Hand-made Wooden Articles or Things for Export
Hedging Transaction Charges
Horse-race Income
Hospital's Income
Hospital in Rural Area
Hotels, Tour Operators, Travel Agent's Foreign Exchange Earnings
Hotels in Hilly Areas
Housing Projects
House Rent Allowance
HUF Payment to a Member
Hundred Percent (100%) Export-Oriented Units
Incidental Surplus of Educational Institution
Income Arising to a Body or Authority or Board or Trust
or Commission
Income Attributable to Supply of Material under Barter System
Income by Way of Dividends or Long-term Capital Gains of
a Venture Capital Fund or a Venture Capital Company on
Equity Shares in a Venture Capital Undertaking
Income from Cutting, Polishing and Sizing Granites
Income from Members of a Club
Income from New Hotels
Income from Sale of Crude OIL
Income from Specified Company
Income from Transfer of US-64 Units of UTI
Income from Units from the Administrator
Income of a Fund for Welfare of Employees or Dependants
Income of an Association, etc. for Promoting Interests
of Members of Scheduled Castes, etc.
Income of an Association of Law, Medicine, etc.
Income of ASOSAI Secretariat
Income of Authority for Marketing of Commodities
Income of an Educational Institution
Income of the Investment Fund
Income of Educational Institution providing Guidelines for
getting Admission in Professional Institution
Income of Central Electricity Regulatory Commission
Income of Certain Technicians
Income of Charitable and Religious Institutions or Trusts
Income of Cinematograph Film Shooting by Non-residents
Incomes of Convention Centre and Multiplex Centre
Income of Cooperative Society for Scheduled Castes
Income of a Corporation for a Minority Community
Income of Credit Guarantee Fund Trust for SSI
Income of Employee in Cooperative Technical Assistance
Programmes
Income of Employees State Insurance Fund
Income of European Economic Community
Income of Exchange Risk Administration Fund
Income of Foreign Company for Tax-free Royalties and Fees
for Technical Services
Income of Hospital
Income of an Infrastructure Fund or an Infrastructure Company
Income of Institutions only for Public Religious Purposes
Income of Insurance Regulatory Development Authority
Income of Investor Protection Fund
Income of Any Other Insurer
Income of IRA
Income of Khadi and Village Industries Board
Income of Khadi and Village Industries Institutions
Income of Local Authority
Income of LIC Pension Fund
Income of Member of Scheduled Tribe
Income of Minor Child
Income of Mutts, Temples, and Gurudwara Authorities, etc.
Income of Mutual Fund
Income of Nidhi
Income of Non-citizens and Non-resident as Salary from
Shooting of Film
Income of Non-resident Consultant
Income of Non-resident, etc. under Technical Assistance Programme
Income of Non-resident News Agency, etc.
Income of North-Eastern Development Finance Corporation Ltd.
Incomes of Offshore Banking Units
Income of Persons Residing in Ladakh
Income of a Political Party
Income of Prasar Bharati
Income of Prime Minister's National Relief Fund
Income of Public Charitable Trust
Income of Regimental Fund or Non-Public Fund
Income of SAARC Fund for Regional Projects
Income of Secretariat of Asian Organisation
Income of Scheduled Tribe
Income of Scientific Research Association
Income of Society Constructing and Maintaining Kalyana Mandapam
Income of Trade Union
Income of Undertakings in Special Category States
Income of University
Income received by a Unit Holder of an Investment Fund
Income Tax paid on Royalties or Technical Service Fee
Income which could have been Earned
Individual's income upto ` 2,00,000 tax-free
Industrial Parks
Industrial Undertakings engaged in Infrastructure Development
Industrial Undertakings in Backward States and Territories
and Industrially Backward Districts
Industrial Undertakings in Free Trade Zones
Industrial Undertakings in North-Eastern Region
Infrastructure Debt Fund
Infrastructure Facilities-provider Companies
Infrastructure Tax Free Bonds
Infrastructure Venture Capital Undertakings
Inheritance of Wealth or Property
Insurance Receipts
Internet Service Providers
Inter-Corporate Dividends
Interest Awarded by Arbitrator
Interest does not Accrue if not Charged
Interest-free Loans
Interest Income of an NRI
Interest on Loan could not be estimated and assessed where
Amount is appropriated towards Capital
Interest on Local Authority Bonds
Interest on Notified Bonds Issued by State Pooled Finance Entities
Interest on NRE Accounts in case of Joint Account Holders
Interest on NRE Account of Non-resident Indians repatriated
from Kuwait
Interest on NRE Bank Account
Interest on Relief Bonds
Interest on Securities and Bonds of NRIs
Interest on Securities of Welfare Commissioner, Bhopal Gas Victims
Interest Payable by Government
Interest Payable by the Industrial Undertakings in some cases
Interest, Premium on Redemption of Bonds and Certificates, etc.
Interest under Land Acquisition Award
Interest Waiver because of Financial Condition
Investment out of Convertible Foreign Exchange
Investor Protection Fund
Lakhotia Puraskar
Leasehold Right Surrender
Leasing of Agricultural Land
Leave Salary by Employee on Retirement/Resignation
Leave Travel Allowance
Life Insurance Policy Money
Liquidated Damages
Local Authority
Long-term Capital Gains
Long-term Capital Gains on Shares Section 10(36)
Long-term Capital Gains on Transfer of Securities Section 10(38)
Marine Products Export Development Authority
MAT Exemption for Infrastructure and Power Companies
Medicare Claim and its Payment
Medical Expenses Reimbursement for any Treatment
Medical Treatment Abroad
Medical Treatment at Employer's Hospital
Medical Treatment at a Nursing Home or Hospital
Medical Treatment of Prescribed Diseases of Ailments
at Approved Hospitals
Medical Insurance Income
Members' Club
Mutual Benefit Concern
Mutual Fund Units: Divided Income
National Sports Fund
National Cultural Fund
Navigation Channel in the Sea
New Industrial Undertakings
No Capital Gains Tax on Transfer of Residential Property
if Invested in Manufacturing Small or Medium Enterprise (SME).
No Tax on Deemed Interest Income
Non-real Income
Non-recurring Receipts
Non-resident's Income
Non-resident Technician's Income
Notional Interest
NPS Trust
Partner Receiving Amount on Retirement
Passage Moneys of a Foreigner
Payment from Approved Superannuation Fund
Payment made to Acquire Aircraft
Payment made to Bhopal Gas Disaster Victims
Payments for Compensation for Cancellation of Agency Agreement
Payments on Resignation from Service
Payments in Commutation of Pension from LIC
Payments Received from Competitor
Payments Received from Provident Fund
Payments received from Sterilisation on a Part of Capital Asset
Payments Received on Termination of Monopoly Rights
Payments Under Optional Early Retirement Scheme
Penalty Amount not Assessable as Income
Pension of Armed Forces
Pension of Gallantry Award Winners
Pensions
Perpetual Life Annuity or Capital Sum in Exchange of
a Capital Asset
Perquisite Not Provided for by Way of Monetary Payment
Perquisite Outside India in the Hands of Employee
Perquisites of Members of Union Public Service Commission
Personal Effects' Sale Proceeds
Political Partys Income
Power Plant's Income
Power Transmission and Distribution Lines
Premium on Redemption of Bonds
Premium Received from Members of Co-operative Society
for Carrying Out Construction Not Taxable
Processing, Preservation and Packaging of Dairy Products
Processing, Preservation and Packaging of Fruits or Vegetables
Processing, Preservation and Packaging of Marine Products
Processing, Preservation and Packaging of Meat or Meat Products
Processing, Preservation and Packaging of Poultry Products
Profit on Currency Exchange
Profits Arising on Settlement of Claim
Property used for Business or Profession
Provident Fund: Receipt of Accumulated Balance
Public Charitable and Religious Trust or Institution
Public Provident Funds Interest
Receipt by Contractor by way of Rent, etc. before Start of Business
Receipt on Destruction or Sterilisation of Revenue Yielding Asset
Receipts by Shareholder from Surplus Assets on Liquidation
Receipts for Travel Outside India
Refinery for Mineral Oil
Reimbursement of Expenses of Technician
Remuneration of Employee of Foreign State
Remuneration of Employee of a Foreign Enterprise
Remuneration of Employee of Overseas Philanthropic Organisation
Remuneration on Employment on a Foreign Ship
Remuneration Out of Funds from International Organizations
Rent of Agricultural Land
Rent of House Property Acquired by Borrowings
Religious Education
Replanting Subsidy
Retiring Government Employees: Tax-Free Receipts
Retiring Public Sector Employees
Reverse Mortgage
Reward under VD Scheme
Royalties and Fees and Tax Payments
Rubber Board
Rubber Replantation Subsidy
Salaami or Premium
Salary of the Person Working on Indian Ship
Sale of Lands & Buildings
Sale of Trees
Sale Proceeds of Agricultural Land
Sale Proceeds of Farm House
Sales Tax not Claimed and not Charged
Sales Tax Refund
Scholarship Granted to meet Cost of Education
Scientific and Industrial Research & Development
Scientific Research Associations Income
Self-occupied House Property
Senior Citizens Income
Share of Profits from Partnership Firm
Share of Reserve
Special Allowance
Special Allowances Received by Employees
Special Compensation after Cessation of Employment
Special Economic Zones
Specified Income of Certain Bodies or Authorities
Spice Board
States and the Union
Sterilisation of Stock-in-trade
Stock Lending
Subsidy for Entertainment Tax
Subsidy by Growers of Rubber, Coffee, Cardamom, etc.
Subsidy for New Industries, etc.
Subsidy for Repayment of Loan not Taxable
Subsidy Received by Hotel
Subsidy Received for Replanting Rubber Trees
Subsidy on Tea through Tea Board
Sukanya Samridhi Account
Sums received under Life Insurance Policy
Supreme Court and High Court Judges: Perquisites, etc.
Supporting Manufacturer-exporter
Surplus in Special Contingency Account
Surrender of Goodwill, User of Trade Mark and Brand Name
and Giving Up Right to Manufacture Commodity
Swachh Bharat Kosh
Tax-free Perquisites
Tax Holiday for Hotel and Convention Centres in Specified Area
Tax Holiday in North-Eastern States
Tax Holiday to Enterprises Providing Telecommunication
Services, Industrial Parks, SEZs, etc.
Tax Holiday to Radio-paging & Domestic Satellite Service
and Internet Service Providers & Broadband Services
Tax on Perquisites Paid by Employer
TDS in U.K.
Tea Board
Technical Services Fee from a Foreign Company Free of Tax
Telecom Services
Testimonials and Personal Gifts
Tobacco Board
Toll Amount
Transfer Fee of a Co-operative Society
Transfer of Assets by Private Company or Unlisted Public
Company to LLP not Liable to Tax
Transfer of Industrial Licence
Transfer of Rights in Agency
Transfer of Share Reserve
Transmission Networks
Transport Allowance
Travelling Allowance
U.N. Staff Remuneration
Unit Trust of India
UTI Unit Income
Utensils Sale Proceeds
Value of Travel Concession enjoyed by Employees
Venture Capital Company/Fund
Venture Capital Company or Venture Capital Funds' Income
from Specified Businesses or Industries
Voluntary Retirement or Separation Amount of an Employee
Waiver of Loan, etc.
Wakfs & Statutory Bodies, etc.
Winning from Horse Races
Woman's Income
Zero Income Tax on over ` 20,00,000 Annual Income
Zero Tax in Respect of Certain Undertakings in North Eastern States
Zila Saksharta Samiti Donations