Firstly, Direct tax should not be taken Lightly, as there will be no question only out of Salary or House Property etc.. Every chapter is linked to Get the GTI. Hence do not leave any chapter in option. (Residential and Scope will be asked separately not Linked with GTI)
*#* Salary
Always take the Gross salary and Not the Net salary( add-back the TDS and others to net salary to get gross salary)
Is writing Down the Section no. compulsory for Exemptions and deduction??
No. In CA exams, Writing down Section No. doesn’t get you a extra mark, and doesn’t reduce any mark if you don’t write it.
BUT , writing the wrong section No. will surely reduce the marks.
Major importance on Exemptions.
*#* House property
Remember the difference way to calculate Income form house property in the Case of SOP, LOP, DLOP.
Also treatment of Interest on loan borrowed for Purchase or Constriction (pre construction interest) Maximum Limits in case of SOP and LOP/DLOP.
*#*Capital Gain.
Applicable Section :- 45, 48, 49, 50, 54 and 55
In which Section 49 and 54 have high chances for the paper, hence do them well.
Transfer | Full Value of Consideration | Indexation |
Sale | Selling Price | From the date of acquisition till the date of sale |
Conversion | Fair market value on the date of conversion | From the date of acquisition till the date of conversion |
Admission of Partners | Amount recorded / credited in books of account | From the date of acquisition till the date of admission |
Dissolution | Fair market value on the date of dissolution | From the date of acquisition till the date of dissolution |
Compulsory acquisition | Initial compensation awarded | From the date of acquisition till the date of compulsory acquisition |
Destroy of capital asset | Insurance claims awarded | From the date of acquisition till the date of destroy of capital assets |
Gift / Will / Inheritance | Selling Price | From the date of acquisition by the previous owner till the date of sale by the current owner. |
*#* Other Sources
Expenses or deductions under section 57,
Exempt incomes(u/s 10).
Salary of MLA comes here not IFS.
*#* Business and Profession.
Go through the Non Business Expenditure/ Expenses not allowed.
Also go through Incomes exempt/ Taxable in other head.
Eg. Dividend from Shares of Indian Co is Exempt u/s 10(34)
But the same cannot be shown exempt in IFB&P
We need to Reduce from the Profits and show that in Income from Other sources and then Exempt the same.
*#* Deduction U/s 80
Past year Papers, We thank Krupali (Student from TYBAF) And Sheth Publications.
Finally Also Solve the Direct Tax paper Asked in TYBcom this year. THe same has been provided in earlier post.
ALL the best.
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