| Contents |
| Title |
Income-Tax Act, 1961 |
| Sections |
Particulars |
| Chapter I |
Preliminary |
| 1. |
Short title, extent and commencement |
| 2. |
Definitions |
| 3. |
Previous year defined |
| Chapter II |
Basis of Charge |
| 4. |
Charge of income-tax |
| 5. |
Scope of total income |
| 6. |
Residence in India |
| 7. |
Income deemed to be received |
| 8. |
Dividend income |
| 9. |
Income deemed to accrue or arise in India |
| Chapter III |
Incomes which do not form Part of Total Income |
| 10. |
Incomes not included in total income |
| 10A. |
Special provision in respect of newly established undertakings in free trade zone, etc. |
| 10B. |
Special provisions in respect of newly established hundred per cent |
| 10C. |
pecial provision in respect of certain industrial undertakings in North-Eastern Region |
| 11. |
Income from property held for charitable or religious purposes |
| 12. |
Income of trusts or institutions from contributions |
| 13. |
Section 11 not to apply in certain cases |
| Chapter IV |
Computation of Total Income |
| 14. |
Heads of income |
| 15. |
Salaries |
| 16. |
Deductions from salaries |
| 17. |
Salary", "perquisite" and "profits in lieu of salary" defined |
| 18. |
[Interest on securities.]- Omitted by the Finance Act, 1988 (26 of 1988), s. 10 (w.e.f. 1-4-1989). |
| 19. |
[Deductions from interest on securities.]- Omitted by s. 10, ibid. (w.e.f. 1-4-1989). |
| 20. |
[Deductions from interest on securities in the case of a banking company.]- Omitted by s. 10, ibid. (w.e.f. 1-4-1989). |
| 21. |
[Amounts not deductible from interest on securities.]- Omitted by s. 10, ibid. (w.e.f. 1-4-1989). C.-Income from house property |
| 22. |
Income from house property |
| 23. |
Annual value how determined |
| 24. |
Deductions from income from house property |
| 25. |
Amounts not deductible from income from house property |
| 26. |
Property owned by co-owners |
| 27. |
"Owner of house property", "annual charge", etc., defined |
| 28. |
Profits and gains of business or profession |
| 29. |
Income from profits and gains of business or profession, how computed |
| 30. |
Rent, rates, taxes, repairs and insurance for buildings |
| 31. |
Repairs and insurance of machinery, plant and furniture |
| 32. |
Depreciation |
| 33. |
Development rebate |
| 34. |
Conditions for depreciation allowance and development rebate |
| 35. |
Expenditure on scientific research |
| 36. |
Other deductions |
| 37. |
General |
| 38. |
Building, etc., partly used for business, etc., or not exclusively so used |
| 39. |
[Managing agency commission.]- Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 12, (w.e.f. 1-4-1989). |
| 40. |
Amounts not deductible |
| 41. |
Profits chargeable to tax |
| 42. |
Special provision for deductions in the case of business for prospecting, etc., for mineral oil |
| 43. |
Definitions of certain terms relevant to income from profits and gains of business or profession |
| 44. |
Insurance business |
| 45. |
Capital gains |
| 46. |
Capital gains on distribution of assets by companies in liquidation |
| 47. |
Transactions not regarded as transfer |
| 48. |
Mode of computation |
| 49. |
Cost with reference to certain modes of acquisition |
| 50. |
Special provision for computation of capital gains in case of depreciable assets |
| 51 to 53. |
Advance money received |
| 54. |
Profit on sale of property used for residence |
| 55. |
Meaning of adjusted, cost of improvement and cost of acquisition |
| 56. |
Income from other sources |
| 57. |
Deductions |
| 58. |
Amounts not deductible |
| 59. |
Profits chargeable to tax |
| Chapter V |
Income of Other Persons, Included in Assessee's Total Income |
| 60. |
Transfer of income where there is no transfer of assets |
| 61. |
Revocable transfer of assets |
| 62. |
Transfer irrevocable for a specified period |
| 63. |
Transfer and revocable transfer defined |
| 64. |
Income of individual to include income of spouse, minor child, etc. |
| 65. |
Liability of person in respect of income included in the income of another person |
| Chapter VI |
Aggregation of Income and set off or Carry Forward of Loss |
| 66. |
Total income |
| 67. |
Method of computing a partner's share in the income of the firm |
| 68. |
Cash credits |
| 69. |
Unexplained investments |
| 70. |
Set off of loss from one source against income from another source under the same head of income |
| 71. |
Set off of loss from one head against income from another |
| 72. |
Carry forward and set off of business losses |
| 73. |
Losses in speculation business |
| 74. |
Losses under the head "Capital gains" |
| 75 to 77. |
Losses of firms |
| 78. |
Carry forward and set off of losses in case of change in constitution of firm or on succession |
| 79. |
Carry forward and set off of losses in case of certain companies |
| 80. |
Submission of return for losses |
| 1[Chapter VIA and VI-B |
Deductions to be Made in Computing Total Income |
| A. |
General |
| B. |
Deductions in respect of certain payments |
| C. |
Deductions in respect of certain incomes |
| D. |
Other deductions |
| Chapter VII |
Incomes Forming Part of Total Income on Which no Income-Tax is Payable |
| 81 to 85. |
Incomes Forming Part of Total Income on Which no Income-Tax is Payable |
| 86. |
Share of member of an association of persons or body of individuals in the income of the association or body |
| Chapter VIII |
Rebates and Reliefs |
| A. |
Rebate of income-tax |
| 87. |
Rebate to be allowed in computing income-tax |
| 88. |
Rebate on life insurance premia, contribution to provident fund, etc. |
| B. |
Relief for income-tax |
| 89. |
Relief when salary, etc., is paid in arrears or in advance |
| Chapter IX |
Double Taxation Relief |
| 90. |
Agreement with foreign countries or specified territories |
| 91. |
Countries with which no agreement exists |
| Chapter X |
Special Provisions Relating to Avoidance of Tax |
| 92. |
Computation of income from international transaction having regard to arm's length price |
| 93. |
Avoidance of income-tax by transactions resulting in transfer of income to non-residents |
| 94. |
Avoidance of tax by certain transactions in securities |
| Chapter XA |
General Anti-Avoidance Rule |
| 95. |
Applicability of GeneralAnti-Avoidance Rule |
| 96. |
Impermissible avoidance arrangement |
| 97. |
Arrangement to lack commercial substance |
| 98. |
Consequences of impermissible avoidance arrangement |
| 99. |
Treatment of connected person and accommodating party |
| 100. |
Application of this Chapter |
| 101 to 109. |
Framing of guidelines |
| Chapter XII |
Determination of Tax in Certain Special Cases |
| 110. |
Determination of tax where total income includes income on which no tax is payable |
| 111. |
Tax on accumulated balance of recognised provident fund |
| 112. |
Tax on long-term capital gains |
| 113 and 114. |
Tax in the case of block assessment of search cases |
| 115. |
Tax on capital gains in case of companies |
| Chapter XII-A |
Special Provisions Relating to Certain Incomes of Non-Residents |
| Chapter XII-B and XII-C |
Special Provisions Relating to Certain Companies |
| Chapter XIID |
Special Provisions Relating to Tax on Distributed Profits of Domestic Companies |
| Chapter XIIE |
Special Provisions Relating to Tax on Distributed Income |
| Chapter XIIF |
Special Provisions Relating to Tax on Income Received from Venture Capital Companies and Venture Capital Funds |
| Chapter XIIG |
Special Provisions Relating to Income of Shipping Companies |
| A. |
Meaning of certain expressions |
| B. |
Computation of tonnage income from business of operating qualifying ships |
| C. |
Procedure for option of tonnage tax scheme |
| D. |
Conditions for applicability of tonnage tax scheme |
| E. |
Amalgamation and demerger of shipping companies |
| F. |
Miscellaneous |
| G. |
Provisions of this Chapter not to apply in certain cases |
| Chapter XIIH |
Income-Tax on Fringe Benefits |
| A. |
Meaning of certain expressions |
| B. |
Basis of charge |
| C. |
Procedure for filing of return in respect of fringe benefits, assessment and payment of tax in respect thereof |
| Chapter XIII |
Income-Tax Authorities |
| 116. |
Income-tax authorities |
| 117. |
Appointment of income-tax authorities |
| 118. |
Control of income-tax authorities |
| 119. |
Instructions to subordinate authorities |
| 120 to 123. |
Jurisdiction of income-tax authorities |
| 124 to 126. |
Jurisdiction of Assessing Officers |
| 127 and 128. |
Power to transfer cases |
| 129 and 130. |
Change of incumbent of an office |
| 131. |
Power regarding discovery, production of evidence, etc. |
| 132. |
Search and seizure |
| 133. |
Power to call for information |
| 134. |
Power to inspect registers of companies |
| 135. |
Power of Principal Director General or Director General or Principal Director or Director, Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner and Joint Commissioner |
| 136 an d137. |
Proceedings before income-tax authorities to be judicial proceedings |
| 138. |
Disclosure of information respecting assessees |
| Chapter XIV |
Procedure for Assessment |
| 139. |
Return of income |
| 140. |
Return by whom to be verified |
| 141. |
Provisional assessment |
| 142. |
Inquiry before assessment |
| 143. |
Assessment |
| 144. |
Best judgment assessment |
| 145. |
Method of accounting |
| 146. |
[Reopening of assessment at the instance of the assessee.] Omitted by the Direct Tax Laws (Amendment) Act, 1988 (4 of 1988), s.53 (w.e.f. 1-4-1989). |
| 147. |
Income escaping assessment |
| 148. |
Issue of notice where income has escaped assessment |
| 149. |
Time limit for notice |
| 150. |
Provision for cases where assessment is in pursuance of an order on appeal, etc. |
| 151. |
Sanction for issue of notice |
| 152. |
Other provisions |
| 153. |
Time limit for completion of assessment, reassessment and recomputation |
| 154. |
Rectification of mistake |
| 155. |
Other amendments |
| 156. |
Notice of demand |
| 157. |
Intimation of loss |
| 158. |
Intimation of assessment of firm |
| Chapter XIVA |
Special Provision for Avoiding Repetitive Appeals |
| Chapter XIVB |
Special Procedure for Assessment of Search Cases |
| Chapter XV |
Liability in Special Cases |
| 159. |
Legal representatives |
| 160. |
Representative assessee |
| 161. |
Liability of representative assessee |
| 162. |
Right of representative assessee to recover tax paid |
| 163. |
Who may be regarded as agent |
| 164. |
Charge of tax where share of beneficiaries unknown |
| 165. |
Case where part of trust income is chargeable |
| 166. |
Direct assessment or recovery not barred |
| 167. |
Remedies against property in cases of representative assessees |
| 168. |
Executors |
| 169. |
Right of executor to recover tax paid |
| 170. |
Succession to business otherwise than on death |
| 171. |
Assessment after partition of a Hindu undivided family |
| 172. |
Shipping business of non-residents |
| 173. |
Recovery of tax in respect of non-resident from his assets |
| 174. |
Assessment of persons leaving India |
| 175. |
Assessment of persons likely to transfer property to avoid tax |
| 176. |
Discontinued business |
| 177. |
Association dissolved or business discontinued |
| 178. |
Company in liquidation |
| 179. |
Liability of directors of private company in liquidation |
| 180 and 181. |
Royalties or copyright fees for literary or artistic work |
| Chapter XVI |
Special Provisions Applicable to Firms |
| 182. and 183. |
Assessment of firms |
| 184. |
Assessment as a firm |
| 185. |
Assessment when section 184 not complied with |
| 187. |
Change in constitution of a firm |
| 188. |
Succession of one firm by another firm |
| 189. |
Firm dissolved or business discontinued |
| Chapter XVII |
Collection and Recovery of Tax |
| 190. |
Deductionat source and advance payment |
| 191. |
Direct payment |
| 192. |
Salary |
| 193. |
Interest on securities |
| 194. |
Dividends |
| 195. |
Other sums |
| 196. |
Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations |
| 197. |
Certificate for deduction at lower rate |
| 198. |
Tax deductedis income received |
| 199. |
Credit for tax deducted |
| 200. |
Duty of person deducting tax |
| 201. |
Consequences of failure to deduct or pay |
| 202. |
Deduction only one mode of recovery |
| 203. |
Certificate for tax deducted |
| 204. |
Meaning of "person responsible for paying" |
| 205. |
Bar against direct demand on assessee |
| 206. |
Persons deducting tax to furnish prescribed returns |
| 207. |
Liability for payment of advance tax |
| 208. |
Conditions of liability to pay advance tax |
| 209. |
Computation of advance tax |
| 210. |
Payment of advance tax by the assessee of his own accord or in pursuance of order of Assessing Officer |
| 211. |
Instalments of advance tax and due dates |
| 212. |
[Estimate by assessee.] Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 81 (w.e.f. 1-4-1988). |
| 213. |
[Commission receipts.] Omitted by s.81, ibid. (w.e.f. 1-4-1988). Due date of instalment Amount payable On or before the 15th June Not less than fifteen per cent. of such advance tax. |
| 214. |
Interest payable by Government |
| 215. |
Interest payable by assessee |
| 216. |
Interest payable by assessee in case of under-estimate, etc. |
| 217. |
Interest payable by assessee when no estimate made |
| 218. |
When assessee deemed to be in default |
| 219. |
Credit for advance tax |
| 220. |
When tax payable and when assessee deemed in default |
| 221. |
Penalty payable when tax in default |
| 222. |
Certificate to Tax Recovery Officer |
| 223. |
Tax Recovery Officer by whom recovery is to be effected |
| 224. |
Validity of certificate and cancellation or amendment thereof |
| 225. |
Stay of proceedings in pursuance of certificate and amendment or cancellation thereof |
| 226. |
Other modes of recovery |
| 227. |
Recovery through State Government |
| 228. |
Recovery of Indian tax in Pakistan and Pakistan tax in India |
| 229. |
Recovery of penalties, fine, interest and other sums |
| 230. |
Tax clearance certificate |
| 231. |
[Period for commencing recovery proceedings.]-Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), s. 93 (w.e.f. 1-4-1989). |
| 232. |
Recovery by suit or under other law not affected |
| 233. |
[Recovery of tax payable under provisional assessment.]-Omitted by the Taxation Laws (Amendment) Act, 1970 (42 of 1970), s. 39 (w.e.f. 1-4-1971). |
| 234. |
Tax paid by deduction or advance payment |
| Chapter XVIII |
Relief Respecting Tax on Dividends in Certain Cases |
| 235. |
Relief Respecting Tax on Dividends in Certain Cases |
| 236. |
Relief to company in respect of dividend paid out of past taxed profits |
| Chapter XIX |
Refunds |
| 237. |
Refunds |
| 238. |
Person entitled to claim refund in certain special cases |
| 239. |
Formof claim for refund and limitation |
| 240. |
Refund on appeal, etc. |
| 241. |
Power to withhold refund in certain cases |
| 242. |
Correctness of assessment not to be questioned |
| 243. |
Interest on delayed refunds |
| 244. |
Interest on refund where no claim is needed |
| 245. |
Set off of refunds against tax remaining payable |
| Chapter XIXA |
Settlementof Cases |
| Chapter XIX-B |
Advance Rulings |
| Chapter XX |
Appealsand Revision |
| 246. |
Appealable orders |
| 247. |
[Appeal by partner].-Omitted by the Finance Act, 1992 (18 of 1992), s. 84 (w.e.f. 1-4-1993). |
| 248. |
Appeal by a person denying liability to deduct tax in certain cases |
| 249. |
Form of appeal and limitation |
| 250. |
Procedure in appeal |
| 251. |
Powers of the Commissioner (Appeals) |
| 252. |
Appellate Tribunal |
| 253. |
Appeals to the Appellate Tribunal |
| 254. |
Orders of Appellate Tribunal |
| 255. |
Procedure of Appellate Tribunal |
| 256. |
Statement of case to the High Court |
| 257. |
Statement of case to Supreme Court in certain cases |
| 258. |
Power of High Court or Supreme Court to require statement to be amended |
| 259. |
Case before High Court to be heard by not less than two judges |
| 260. |
Decision of High Court or Supreme Court on the case stated |
| 261. |
Appeal to Supreme Court |
| 262. |
Hearing before Supreme Court |
| 263. |
Revision of orders prejudicial to revenue |
| 264. |
Revision of other orders |
| 265. |
Tax tobe paid notwithstanding reference, etc. |
| 266. |
Execution for costs awarded by Supreme Court |
| 267. |
Amendment of assessment on appeal |
| 268. |
Exclusion of time taken for copy |
| 269. |
Definition of "High Court" |
| Chapter XXA |
Acquisition of Immovable Properties in Certain Cases of Transfer to Counteract Evasion of Tax |
| Chapter XXB |
Requirement as to Mode of Acceptance, Payment or Repayment in Certain Cases to Counteract Evasion of Tax |
| Chapter XXC |
Purchase by Central Government of Immovable Properties in Certain Cases of Transfer |
| Chapter XXI |
Penalties Imposable |
| 270. |
Failure to furnish information regarding securities, etc. |
| 271. |
Failure to furnish returns, comply with notices, concealment of income, etc. |
| 272. |
Failure to give notice of discontinuance. |
| 273. |
False estimate of, or failure to pay, advance tax |
| 274. |
Procedure |
| 275. |
Bar of limitation for imposing penalties |
| Chapter XXII |
Offences and Prosecutions |
| 276. |
Removal, concealment, transfer or delivery of property to thwart tax recovery |
| 277. |
False statement in verification, etc. |
| 278. |
Abetment of false return, etc. |
| 279. |
Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner |
| 280. |
Disclosure of particulars by public servants |
| Chapter XXIII |
Miscellaneous |
| 281. |
Certain transfers to be void |
| 282. |
Service of notice generally |
| 283. |
Service of notice when family is disrupted or firm, etc., is dissolved |
| 284. |
Service of notice in the case of discontinued business |
| 285. |
Submission of statement by a non-resident having liaison office |
| 286. |
Furnishing of report in respect of international group |
| 287. |
Publication of information respecting assessees in certain cases |
| 288 to 290. |
Appearance by authorised representative |
| 291. |
Power to tender immunity from prosecution |
| 292. |
Cognizance of offences |
| 293. |
Bar of suits in civil courts |
| 294. |
Act to have effect pending legislative provision for charge of tax |
| 295. |
Power to make rules |
| 296. |
Rules and certain notifications to be placed before Parliament |
| 297. |
Repeals and savings |
| 298. |
Power to remove difficulties |
| The Schedules |
|
| 1st Schedule |
Insurance Business |
| 2nd Schedule |
Procedure for Recovery of Tax |
| Part I |
General Provisions |
| Part II |
Attachment and Sale of Movable Property |
| Part III |
Attachment and Sale of Immovable Property |
| Part IV |
Appointment of Receiver |
| Part V |
Arrest and Detention of The Defaulter |
| Part VI |
Miscellaneous |
| 3rd Schedule |
Procedure for Distraint by Assessing Officer or Tax Recovery Officer |
| 4th Schedule |
|
| Part A |
Recognised Provident Funds |
| Part B |
Approved Superannuation Funds |
| Part C |
Approved Gratuity Fund |
| 5th Schedule |
List of Articles and Things |
| 6th Schedule |
Omitted by the Finance Act, 1972 (16 of 1972), s. 43 (w.e.f. 1-4-1973). Originally, the Schedule was inserted by the Finance Act, 1968 (19 of 1968), s. 30 and the Third Schedule (w.e.f. 1-4-1969) and was later amended by the Finance (No. 2) Act, 1971 (32 of 1971), s. 30 (w.e.f. 1-4-1972). |
| 7th Schedule |
|
| Part A |
Minerals |
| Part B |
Groups of Associated Minerals |
| 8th Schedule |
List of Industrially Backward States and Union Territories |
| 9th Schedule |
Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986 (46 of 1986), s. 31(w.e.f. 1-4-1988). Original Ninth Schedule was inserted by the Direct Taxes (Amendment) Act, 1974 (26 of 1974), s. 16 (w.e.f. 1-4-1975). |
| 10th Schedule |
Omitted by the Finance Act, 1999 (27 of 1999), s. 89 (w.e.f. 1-4-2000). |
| 11th Schudule |
List of Articles or Things |
| 12th Schudele |
Processed Minerals and Ores |
| 13th Schedule |
List of Articles or Things |
| Part A |
For The State of Sikkim |
| Part B |
For The State of Himachal Pradesh and The State of Uttaranchal |
| Part C |
For The State of Jammu and Kashmir |
| 14th Schedule |
List of Articles or Things or Operations |
| Part A |
For The North-Eastern States |
| Part B |
For The State of Sikkim |
| Part C |
For The State of Himachal Pradesh and The State of Uttaranchal |
