1. FIVE HEADS OF INCOME Income under head salaries.
2. Income from house property
Profits and gains of business or professions
Capital gains
Income from other sources
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

2. INCOME FROM SALARY
Income can be charged only if there is an employer employee relationship between the payer and payee.
SALARY INCLUDES :
Basic salary or wages
Any annuity or pension
Gratuity
Advance of salary
Leave encashment
Commission
Retirement benefits.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

3. GROSS SALARY
The aggregate of the above incomes , after exemption available , is known as Gross Salary and this charged under the head income from salary. Basic salary along with commission and bonuses is fully taxable.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

4. ALLOWANCES
An allowance is a fixed monetary amount paid by the employer to the employee for expenses related to office work. Allowance are generally included in the salary and taxed unless there are exemption available.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

5. FULLY TAXABLE ALLOWANCE
Dearness allowance.
City compensatory allowance.
Overtime allowance
Servant allowance
Lunch allowance
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

6. EXEMPTED ALLOWANCE Conveyance allowance . House rent allowance (HRA).
4/21/2017
EXEMPTED ALLOWANCE
Conveyance allowance .
House rent allowance (HRA).
Leave travel allowance (LTA).
Medical allowance
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

7. Allowance/Exemption Allowances Exemption Upto Rs 800 per month.
On certain calculation.
Twice in the block of two year.
Upto Rs per annum is tax free.
Conveneyance allowance
House rent allowance
Leave travel allowance
Medical allowance
Allowances
Exemption
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

8. PERSONAL ADVANTAGES
Perquisites are benefits in addition to normal salary to which an employee has a right by way of his employment.
Employer gives Form 16 which will contain all the earnings, deduction and exemption available.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

9. INCOME FROM HOUSE PROPERTY
Any residential , industrial or commercial property that you own will be taxed as well. Even if your house property is not let out, it will be considered as deemed to be let out and you need to pay tax on it.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

10. PROFITS AND GAINS OF BUSINESS OR PROFESSION
Any income earned by any businessman / professionals will be taxable under this head of income
The income chargeable to tax is the difference between the credits received on running the business and expenses incurred.
Deduction allowed -:
Expenses directly related to Business.
Depreciation of assets used
Rent for premises
Insurance
Repairs of machinery, furniture
Advertisements
Travelling etc.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

11. CAPITAL GAINS
Any profit or gains arising from transfer of the capital assets held as investment are chargeable to tax under the head “CAPITAL GAINS”.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

12. CAPITAL GAINS For example :- Sale of building Sale of land
Sale of shares, debentures etc.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

13. INCOME FROM OTHER SOURCES
Any income that does not fall under the four heads above is taxed under the head “INCOME FROM OTHER SOURCES”. Certain examples are-:
Income from bank deposits
Winning from lottery
Sum of money exceeding Rs. 50,000.(received from person other than relative)
Income from bank interest
Income from divident
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

14. CA Mastan Singh Chambyal (ACA, LCS, M. Com) 9888127510, ca. ms
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

15. DEDUCTIONS FROM TOTAL INCOME
Deduction available for taxpayer are -:
LIFE INSURANCE PREMIUM
CONTRIBUTIONS TO PROVIDENT FUND
SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

16. Section 80C Deduction available under section 80c
Deduction available from gross total income.
Only an individual or a Hindu Undivided Family can claim deduction.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

17. Eligible Amount
Any sums paid or deposited in the previous year by the assessee as -:
Life insurance premium
A deferred annuity contract.
Deduction from salary payable by or on behalf of the government .
Statutory provident fund.
Public provident fund.
Sum deposited in post office savings bank
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

18. As subscription to any units of any mutual fund referred u/s. 10(23D).
As a contribution by an individual to any pension fund referred u/s 10(23D).
As subscription to notified deposit schemes of-:
Public sector company providing finance for purchase/construction of residential houses in india.
Any authority constituted in india for the purposes of housing or planning, development of cities, towns etc.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

19. purchase or construction of a residential house property.
tuition fees
purchase or construction of a residential house property.
subscription to equity shares or debentures approved by Board.
Term Deposit (Fixed Deposit)
Senior Citizen Savings Schemes Rules, 2004.
Post Office Time deposit Rules, 1981.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

20. CONDITIONS
No deduction shall be allowed to assessee in the previous year of happening of following events. If the assessee:—
Terminates the contract of insurance.
Terminates the participation in any ULIP plan.
Transfers his house property .
Sales or transfers any equity shares or debentures.
Withdraw any amount before the expiry of the period of five years from the date of deposit.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

21. DEDUCTION U/S 80CCC
If an assessee deposits any amount out of his income chargeable to tax or keep in force a contract for any annuity plan of Life Insurance Corporation of India or any other insurer for receiving pension from the fund referred to in section 10(23 AAB), he shall be allowed a deduction of the amount equal to the deposit or Rs. 1,00,000 whichever is less.
If any amount paid or deposited by the assessee, has been allowed as a deduction u/s 80CCC, then a deduction of such amount shall not be allowed u/s 80C.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

22. SECTION 80CCD
It is a deduction in respect of contribution to pension scheme of central government.
Persons covered : Employee/ Employer of central government or any other assessee being an individual.
Eligible amount : Deposit or payment made by the employee, individual and central government under a pension scheme notified by the central government.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

23. SECTION 80D It is a Deduction in respect of medical insurance premia.
It provide a deduction of Rs. 15,000/- to an individual or HUF to keep in force an insurance on the health of the assessee, spouse, dependent parents or children of the assessee.
This deduction is allowed up to Rs.20,000/- in case of health insurance for senior citizens.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

24. SECTION 80DD 
It is a deduction for physically handicapped & disabled dependent.
A total deduction of Rs. 50,000 will be available to the parents, spouse, Children in respect of either medical expenditure incurred on medical treatment or for the deposits for future needs of the disabled or handicapped dependent.
However in case of 80% or more of disability a sum of Rs. 1,00,000 is allowed.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

25. SECTION  80DDB
It is a deduction for medical treatment of serious ailments.
If a individual or HUF actually pays any amount for the medical treatment of a specified disease or ailment for himself or dependent or a member of HUF (in case of HUF assessee), then the amount actually paid or Rs. 40,000/- whichever is less shall be allowed as deduction.
Rs.60,000/- if the patient is a senior citizen whichever is less shall be allowed as deduction.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

26. SECTION 80E
It is a deduction in respect of interest on loan taken for higher education.
The following conditions should be satisfied-:
The taxpayer is an individual.
Taken a loan for the purpose of pursuing his higher education.
Taxpayer has paid interest on such loan in previous year.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

27. SECTION 80G
It is a deduction in respect of donations to certain funds, charitable institutions, etc.
Persons covered - All assessees s paying donations to the app association or to any other association or institution for the development of infrastructure for sports & games or the sponsorship of sports & games, in India.
Eligible amount - Any sums paid in the previous year as donations to certain funds, charitable institutions etc. Specified u/s. 80g(2).
Relevant conditions/points
1. Donation in kind is not eligible for deduction.
2. Donations paid out of another year’s income or out of income not includible in the assessment of current year are also eligible for deduction.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

28. SECTION 80GG It is a deduction of rents paid.
The excess of 10% of total income payment of rent in respect of any furnished or unfurnished accommodation occupied by him for the purpose of his own residence.
The extent of Rs. 2,000 per month or 25% of his total income, whichever is less, will be allowed.
This deduction is allowable to only those assessees who do not own any residential accommodation.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

29. SECTION 80U It is a deduction in case of a person with disability.
Persons Covered-: Individual resident in India.
Conditions -:
Assessee must attach a copy of certificate signed by medical authority along with return of income filed u/s. 139.
Medical authority means the medical authority referred u/s. 2(p) of Persons with Disabilities.
“Person with Disability” means a person as referred to in Sec. 2(f)
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

30. Extent of Deduction Rs. 50,000/- in case of normal disability or
Rs. 1,00,000/- in case of severe disability.
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,

31. With Best Regards & Thanks CA Mastan Singh Chambyal Managing Partner at M S Chambyal & Associates (Chartered Accountants) Contact Sco 373/2 Sector 32 D , Chandigarh
CA Mastan Singh Chambyal (ACA, LCS, M.Com) ,