Law of Income Tax - Volume 2

.........................................................................................................................
Description
A statute is an edict of legislature. To decipher its construct and content; unearth the legislative intent and unravel the legal import is the function of interpretation. Interpretation is a vexed topic. Recourse to different aids to interpreting the statute therefore becomes invariable. Tax commentaries have been accepted and referred as an aid [if not an aid, atleast a source] of interpretation. A commentary gives the interpretation, analysis, insight, opinion, explication, reaction and evaluation of the statute. It is therefore aptly
acknowledged as an external (nay eternal) aid of interpretation to various stake holders (viz Revenue authorities, judiciary, taxpayer). Sri A.C. Sampath Iyengar penned his commentary on the 'Law of Income-tax' in the pre-independence era. The first version was published in 1941. Since then, this commentary has been a treatise which has enriched its readers for more than eight decades. The commentary, its apt content and the appropriate detailing, with a reader-friendly style of cataloguing have made it indispensable for any tax professional. To be continuously indispensable, the commentary should assimilate as well as reflect the trends and changes in the tax law. Over the years, with innumerable changes in the Income-tax statute, twelve editions have been released. With every edition, the commentary has become more comprehensive giving deeper insights into the Act. The lustre of this commentary through this journey has remained unparalleled and unmatched. The original author and the various editors thereafter have maintained the glory of this commentary.
.........................................................................................................................
Contents
Chapter II - Basis of Charge (Contd.)
4. Charge of income-tax
5. Scope of total income
5A. Apportionment of income between spouses governed by Portuguese Civil Code
6. Residence in India
7. Income deemed to be received
8. Dividend income
9. Income deemed to accrue or arise in India
9A. Certain activities not to constitute business connection in India
9B. Income on receipt of capital asset or stock in trade by specified person from specified entity
Chapter III - Incomes which do not form part of total income
10.    Incomes not included in total income
        (1)          agricultural income
        (2)          sum received by a member of HUF (2A)    share income of partner
        (3)           casual and non-recurring receipts (Omitted)
        (4)           interest income of a non-resident from specified securities, bonds and
                        NRE account
        (4A)         interest income of a non-resident from NRE account in any bank in India
                        (Substituted)
        (4B)         interest income of NRIs on specified savings certificates
        (5)            value of any travel concession or assistance
        (5A)         remuneration received for rendering services in connection with  shooting  of
                        cinematograph  films  by  foreign  film producers (Omitted)
        (5B)         tax on salaries to technicians (Omitted)
        (6)            specified exemptions to foreign citizens employed in India
        (6A)         tax paid on behalf of a foreign company in respect of royalty
                        or fees for technical services
        (6B)         tax paid by Government or an Indian concern not to form part
                         of the income of non-residents
        (6BB)       tax paid by an Indian company under an approved agreement
                         with  foreign Government/enterprise  engaged  in  aircraft
                         business
        (6C)         income by way of fees arising to a specified foreign company for services
                         connected with security of India
        (7)            allowances or perquisites to Indian citizens for services outside India
        (8)            remuneration for duties in India in connection with any co-operative
                         technical assistance programmes and projects
        (8A)         remuneration or fees received by non-resident consultants
        (8B)         remuneration or fees received from non-resident consultants by their
                          foreign employees
         (9)           income of member of family assigned to duties in India under clause (8) or
                         (8A) or (8B)
         (10)         gratuity payment(s) (1OA) commutation of pension (1OAA) encashment of
                         unutilised earned leave by retiring employees
        (10B)       retrenchment compensation received by a workman (10BB) payments
                        under the Bhopal Gas Leak Disaster Act
        (10BC)    amount received by an individual or his legal hair by way of disaster
                        compensation
        (10C)      compensation received/receivable on voluntary retirement by specified
                        employees
        (10CC)    tax on income in the nature of perquisite paid by employer
        (10D)      sum received under a life insurance policy including bonus
        (11)         payment from a provident fund
        (11A)      payment under an account, Sukanya Samriddhi Account Rules
        (12)        accumulated balance in a recognised provident fund (12A)
                        payment from the National Pension System Trust
        (13)         payment from an approved superannuation fund (13A) residential
                       accommodation allowance granted by the employer
        (14)        special allowances specifically granted to meet expenses (14A) income
                       received by public financial institution as exchange risk premium (Omitted)
        (15)        interest income on various specified bonds, savings certificates, etc.
        (15A)      payment to acquire an aircraft on lease under an approved agreement
        (16)        educational scholarships
        (17)        specified allowances of MPs, MLAs, etc. (17A) awards and rewards in
                       cash or in kind
        (18)        pension income of award winners (18A) ex gratia payments on abolition
                       of privy purse (Omitted)
         (19)       family pension of a member of armed forces (19A) annual value of a
                       palace in occupation of a Ruler
        (20)        income of a local authority from housing, etc. (20A) income of State
                        Housing Boards, etc (Omitted)
        (21)        income of a scientific research association
        (22)        income of a university or other educational institution (Omitted)
        (22A)      income of a hospital for specified purposes (Omitted)
        (22B)      income of specified news agencies
        (23)        income of specified sports association (Omitted)
        (23A)      income of specified professional association
        (23AA)    income received from regimental or non-public fund
        (23AAA)  income received by any person on behalf of notified fund
        (23AAB)  income pension fund set up by LIC or any other insurer
        (23B)       income of a public charitable trust for development of khadi or
                         village industries
        (23BB)     income of an authority established for development of khadi or village
                         under the industry
        (23BBA)   income of statutory bodies or authorities for the administration of public
                          religious or charitable trusts or endowments  
        (23BBB)  income European Economic Community
        (23BBC)  income of SAARC Fund for Regional Projects
        (23BBD)  income of ASOSAI-SECRETARIAT
        (23BBE)   income of Insurance Regulatory and Development Authority
        (23BBF)   income of North-Eastern Development Finance Corporation Limited
        (23BBG)  income of Central Electric Regulatory Commission
        (23C)       income of specified fund, institution, etc. for charitable purposes, etc.
        (23D)       income of Mutual Funds
        (23DA)     income of securitization trust
        (23E)        income of specified Exchange Risk Administration Fund (Omitted)
        (23EA)     income of Investor Protection Fund
        (23EB)     income of Credit Guarantee Fund Trust for Small Industries
        (23EC      income by way of contributions of Investor Protection Fund set up by
                         commodity exchanges (23EE) income of Core Settlement Guarantee Fund
        (23F)       dividend income or long-term capital gains of a venture capital
                         fund/company
        (23FA)     dividend income or long-term capital gains of a venture capital
                         fund/company
        (23FB)     income of venture capital company/fund
        (23FBA)   income of an investment fund
        (23FBB)   income accruing or arising or received by a unit holder
        (23FC)     income of a business trust
        (23FCA)   income of a business trust, being a real investment trust
        (23G)       specified income of infrastructure capital fund/company/co-operative bank (Omitted)
        (24)         income of a registered trade union
        (25)         interest on securities and income of certain savings funds
        (25A)       income of ESI Fund
        (26)         income of Scheduled Tribe in specified areas
        (26A)       income of any person in Ladakh
        (26AA)     income of winnings from Sikkim lottery for Sikkim residents (Omitted)
        (26AAA)   income of Sikkemese individuals
        (26AAB)  income of agricultural produce market committee/board
        (26B)        income   of   any   corporation   established   for   promoting Scheduled
                          Castes/Tribes
        (26BB)     income of corporation for promoting the interests of members of
                         minority community
        (26BBB)  income of corporation for welfare and economic upliftment of
                         ex-servicemen
        (27)         income of a co-operative society formed for promoting the interests of
                        members of Scheduled Castes/Tribes
        (28)         amount adjusted or paid in respect of tax credit certificates (Omitted)
        (29)         income of marketing authorities (Omitted)
        (29A)       income of specified Boards
        (30)         subsidy granted to the tea industry
        (31)         subsidies   received   by   planters   in   respect   of   specified commodities
        (32)         specified income of minors includible under section 64(1 A)
        (33)         income from transfer of units of Unit Scheme, 1964
        (34)         dividend income under section 115-O
        (35)         income from units of Mutual Funds
        (36)         long-term capital gains from equity shares
        (37)         capital gains from transfer of agricultural land
        (38)         long-term capital gains from transfer of equity shares or units of an
                        equity oriented fund
        (39)         income of notified persons from any international sporting event held
                         in India
        (40)         income of subsidiary company by way of grant from holding company
                        engaged in power business
        (41)         income   arising   from  transfer  of  a capital   asset   of  an undertaking
                        engaged in power business
        (42)         income of body/authority established under a bilateral treaty
        (43)         amount received by an individual as  a loan in a reverse mortgage
                        transaction
        (44)         income received by any person from New Pension System Trust   
        (45)         allowance or perquisite paid to Chairman/retired Chairman or
                         member/retired member of UPSC
        (46)         specified income of statutory body or authority or Board or Trust   
        (47)         income of an infrastructure debt fund   
        (48)         income in Indian currency by a foreign company for sale of crude oil
        (49)         income of National Financial Holdings Company Limited   
        (50)         income from specified service chargeable to equalisation levy
SUBJECT INDEX
.........................................................................................................................
Author Details
Sampath Iyengar
Foreword by,
Justice (Dr.) D.Y. Chandrachud, Judge, Supreme Court of India, Former Chief Justice, Allahabad High
Court Former Judge, Bombay High Former Addl. Solicitor General of India.
Revised by
H.Padamchand Khincha, Chartered Accountant
K.K. Chythanya, Senior Advocate