Chapters
Expert commentary on the Income Tax Act, 2025 — organized chapter by chapter covering all 536 sections and 333 rules.
Preliminary
Definitions and Commencement
Covers short title, commencement date (1 April 2026), and 112 definitions including capital asset, income, person, company, assessee, virtual digital asset, and more.
Basis of Charge
Tax Year, Residence, Scope of Income
Answers the four foundational questions: What is the tax period (Tax Year replaces Previous Year)? Who is liable? What income is taxable? What income is deemed to arise in India?
Income Not Included in Total Income
Exempt Income
Agricultural income, life insurance proceeds, provident fund payments, HRA/LTC allowances, NRI exemptions, IFSC exemptions. Old Section 10's 59 clauses reorganized into Schedules.
Computation of Total Income
Overarching Framework
The overarching framework for computing total income under all five heads - Salaries, House Property, Business/Profession, Capital Gains, and Other Sources.
Salaries
Income under the Head Salaries
Charging provision, definition of salary, valuation of perquisites (ESOPs, sweat equity), profits in lieu of salary, gratuity exemptions, and standard deduction.
Income from House Property
Annual Value and Deductions
Annual value determination, vacancy allowance, self-occupied property limits, builder stock-in-trade, deductions (30% of NAV + interest on borrowed capital), pre-construction interest.
Profits and Gains of Business or Profession
Business Income Computation
Charging provision, specific and general deductions, depreciation, block of assets, TDS disallowances, deemed profits, cost computation, and presumptive taxation schemes.
Capital Gains
Taxation of Capital Assets
Charging provision, meaning of transfer, capital asset classification, holding periods, full value of consideration, cost of acquisition, indexation, and exemptions for reinvestment.
Income from Other Sources
Residuary Head of Income
The residuary head capturing income not classifiable under the other four heads - interest, dividends, gifts, winnings from lotteries, and other miscellaneous income.
Clubbing, Aggregation & Set-off of Losses
Income Aggregation Rules
Income clubbing rules (spouse, minor child), aggregation of income, unexplained income/assets, set-off of losses within and across heads, and carry forward provisions.
Deductions from Gross Total Income
Tax Saving Investments and Deductions
The incentive engine: LIC/PPF/ELSS (old 80C), health insurance (old 80D), NPS (old 80CCD), home loan interest (old 80EEA), donations (old 80G), and disability deductions.
Rebates and Reliefs
Tax Rebates and Credits
Tax rebate under Section 87A (now Section 155), relief for salary arrears, relief for double taxation, and foreign tax credit provisions.
Transfer Pricing & Anti-Avoidance
Special Provisions and GAAR
Transfer pricing regulations for international and domestic transactions, Advance Pricing Agreements, safe harbour rules, and General Anti-Avoidance Rules (GAAR).
Payment and Determination of Tax
Advance Tax and TDS/TCS
Mode and manner of payment of tax, determination of tax liability, advance tax installments, and computation provisions.
Administration and Returns
Filing, Assessment, and Administration
Income tax authorities hierarchy, filing of returns, assessment procedures (scrutiny, best judgment), time limits, and administrative powers.
Procedural Framework
Appeals, Penalties, and Miscellaneous
Appeals (CIT-A, ITAT, High Court, Supreme Court), special provisions for certain entities, tax collection, refunds, penalties, prosecution, and miscellaneous provisions.