Part 1 - Direct Taxes

1.i R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication

1.ii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Membership Fees Membership Fees for 2023-24 (In `) Details ICAI Member prior 01.04.2018 ICAI Member after 01.04.2018 BCAS Membership Ordinary With Journal Entrance Fee 1,180 590 Membership Fees 2,950 2,950 Life Membership (without Journal) 17,700 17,700 Life Membership (with Journal), 18,900 18,900 Journal Subscription 1,200 1,200 Journal Subscription with Courier 1,800 1,800 Details 1 Year 2 Year 3 Years Student Membership [Membership, E-Journal, Student Study Circle] 500 800 1000 The above fees are inclusive of Goods and Service Tax. The rates are subject to change on the basis of notification from time to time. 6 months proportionate subscription of the BCA Journal is available from October to March every Financial Year. Note: 1. Outstation payments to be made by Demand Draft only, payable at Mumbai. Now you can pay online on www.bcasonline.org 2. Cheques/Draft should be drawn in favour of “Bombay Chartered Accountants’ Society”. 3. Please share your NEFT details promptly once payment is done. 4. Please attach a photocopy of Membership Certificate of The Institute of Chartered Accountants of India. (Only while applying for New Membership) 5. Office timing 10.30 a.m. to 1.30 p.m. and 2.00 p.m. to 5.30 p.m. In case of new members and renewals of existing membership, the recipient of the supply can be the member only. Therefore, only the GST registration number of the member (and not the firm) will be recognised. In case the member is not registered under the GST Law, the same shall be treated as B2C Transaction. Online Link for Quick Payment and Enrollment For New Members :- https://www.bcasonline.org/NewMember.php For Renewal :- https://www.bcasonline.org/Quickpay.php © BOMBAY CHARTERED ACCOUNTANTS’ SOCIETY No part of this publication may be reproduced or transmitted in any form or by any means without the permission in writing from the Bombay Chartered Accountants’ Society. The contents of this Referencer has been updated till 31st May, 2023. Note: Every effort has been made to ensure accuracy in the information in the Referencer section at the time of going to press. The publisher do not hold themselves responsible for any errors that may have arisen. Published by President CA. Mihir Sheth on behalf of Bombay Chartered Accountants’ Society, (ISO 9001:2015 Certified) 7, Jolly Bhavan No. 2, BCAS Chowk, Ground Floor, New Marine Lines, Mumbai-400 020. Telephone : +91 22 6137 7600 Website : www.bcasonline.org; E-mail : [email protected] E-Journal : www.bcajonline.org E-Learning : https://bcasonline.courseplay.co/ Printed by Finesse Graphics & Prints Pvt. Ltd.

1.iii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Foreword DeVeoeveb Hejb oeveb efJeÐeeoeveceleë Hejced~ DeVesve #eefCekeÀe le=eqHle³ee&JeppeerJeb ®e efJeÐe³ee~~ The offering of food is great; the offering of education is even greater. While food satisfies only momentarily, education satisfies during the entire course of life. Circa 1949. A young nation was slowly building herself from ground up, after the freedom fighters had delivered independence to her citizens just two years ago. Juxtaposed with the everyday challenges of providing her people roti, kapda aur makaan was the need to assemble a force that would take up the gauntlet of restoring her past glory. The leaders of the day were aware of the responsibility placed on their shoulders. The trusted Munimji who kept a tight control on the income and expenses of the business for his Sethji (the Hindi word for the big boss) had to contend with many restrictions imposed by the then regulatory environment, something he may not have been necessarily trained for. In 1948, an Expert Committee had been formed to examine the scheme of an autonomous association of accountants in India, to cut the eighteen-year-old umbilical cord between the Registered Accountants and the Government of India. By an Act of Parliament, The Chartered Accountants Act, 1949 came into force, and a statutory body, The Institute of Chartered Accountants of India (ICAI) was established to regulate the profession of Chartered Accountancy in the country. Bombay State, which covered nearly one-sixth of all land in India, was slowly but surely emerging as the beehive of commerce and industry in the nation. Little wonder then that a set of 7 committed Chartered Accountants from the city of Bombay took it upon themselves to support the fledgling economy by providing a platform for like-minded professionals to come together - to hone their skills, exchange knowledge and learn from one another. The birth of the Bombay Chartered Accountants’ Society on the sixth day of July 1949, just five days after the formation of the ICAI, speaks volumes about the commitment of our Founding Fathers. Over time, keeping in mind the requirements of its members, BCAS has pioneered several initiatives (including the Residential Refresher Course (RRC), Monthly Journal, Short/ Long Duration Courses, Workshops, Lecture Meetings, Advocacy, Referencer and other Publications, to name a few). These have since been replicated by other institutes and associations across the nation. The consistency and dependability of its offerings has made BCAS a well-recognised and respected name amongst various stakeholders, including the CA membership, the regulators, the bureaucrats, other professional bodies, the judiciary, and industry barons. Amongst all the various contributions, the Referencer is undoubtedly the most versatile, with its reach and readership transcending the boundaries of our profession. With the basics of various acts and regulations captured in a lucid manner, the Referencer is a cherished ‘go to guide’ for every accountant, professional and business person. For the past few decades, the Referencer has had a theme-based release. This year, our beloved BCAS celebrates, the 75th Year of its Founding. We feel justifiably humbled to be part of this legacy and share with you this year’s Referencer. This edition is yet again a collector’s item as it showcases vision and various activities of BCAS as the theme. We

1.iv R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication are sure that many of our Referencer users have immensely benefited from this vibrant Society. The highlights of the coverage includes: 1) Learning: Journal & Publications, 2) Facilitating Effective Government Policies: Advocacy & Representations, 3) Knowledge Dissemination: Residential Refresher Courses, Long Duration Courses, Seminars, Lectures, Fireside Chats, 4) Social Services: BCAS Foundation & Social Services, 5) Harnessing Talent: Skill Development & Yuva Shakti, 6) Building Networks: Networking & Mentoring. Needless to add, as is the norm, the Referencer encapsulates six specialized content-driven booklets. On this occasion of 75th year, we have also taken an righteous effort to bring new generation topics of interest to the Referencer. We would once again like to place on record our immense gratitude to our dear Past President CA. Pranay Marfatia for his tireless efforts in shaping the Referencer over the past two decades. He is ably supported by the dedicated editorial team of CA Yatin Desai, CA Zubin Billimoria, CA. Kinjal Bhuta, CA Preeti Oza, and CA. Gaurav Save who also deserve our accolades. The entire team of compilers and other proofreaders supports and works under their stewardship. We would also like to convey our appreciation to Team Finesse Graphics and the staff at BCAS.. We invite your valuable feedback on the Referencer, both the content and design. This will help us remain both future-ready and relevant. We pledge our commitment to arm you with a quality BCAS Referencer. Wish you happy Referenc(er)ing!!! CA. Mihir Sheth CA. Narayan Pasari President (2022-23) Chairman Seminar, Public Relations & Membership Development Committee (2022-23) CA. Chirag Doshi CA. Uday Sathaye President (2023-24) Chairman Seminar, Public Relations & Membership Development Committee (2023-24)

1.v R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication About the Theme Now in its 75th year, the Bombay Chartered Accountants’ Society (BCAS) has espoused the cause of integrity, dissemination of knowledge, advocacy and support to both its members and society at large. The BCAS Vision, finely crafted by our Founding Fathers, aims at creating a principle-centered and learning oriented organisation which is proactive to change and disseminates knowledge to its members, harnesses talent and builds networks, with a clean and effective administration and governance structure. The clarity of thought behind the Vision Statement has set BCAS on an unwavering course, keeping in mind the principle ‘Service of mankind is service to God’. The BCAS Referencer 2023-24 showcases the achievements and aspirations of BCAS as it recommits itself to the furtherance of the profession, by being both the voice and conscience of its discerning members. BCAS promotes and upholds the highest standards of professional excellence, while continuously striving to augment the capabilities, skills, and knowledge of its members through countless initiatives including training programs, residential refresher courses, seminars, lecture meetings and conferences. BCAS fosters a culture of knowledge sharing and thought leadership by providing a platform to its members to exchange ideas, insights, and best practices through publications, research papers and technical guides. BCAS helps members stay abreast of the evolving professional landscape and equips them with the necessary expertise to excel in their chosen endeavors. It strengthens professional and fraternal bonds by organizing events, seminars, conferences, and social gatherings where members can connect with peers, share experiences, and build a network of relationships. BCAS also facilitates collaborations with other professional bodies, regulators, and industry stakeholders. BCAS promotes ethical behavior, transparency and accountability by proactively engaging with members through frank discussions on issues and challenges faced by the profession. These hallmarks collectively build BCAS’s reputation as a respected professional body that supports the growth, development, and excellence of Chartered Accountants in India and beyond. As BCAS enters its platinum jubilee year, considering the changing landscape of the profession, BCAS plans to unveil a host of initiatives in the coming years: • Provide extensive training and resources to its members to adapt to technological changes. • Increase its reach within India and abroad, through associations and social media connect. • Champion the cause of sustainability and create a positive societal impact. • Focus on overall professional development through a series of workshops, seminars, webinars on emerging topics, technical updates and soft skill development. • Deepen the connections with industry and regulators through research-based advocacy. • Nurture the Gen Next through a dedicated youth platform.

1.vi R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication 2022-23 Chairman Narayan Pasari Ex-Officio Mihir Sheth Chirag Doshi Convenors Kinjal Bhuta Manmohan Sharma Mrinal Mehta Preeti Cherian Members Anand Bathiya Chintan Shah E. Chaitanya Gaurav Luthra Gaurav Save Govind Goyal Harish Rachamandugu Janam Oza Kaustubh Deshpande Kavita Loya Lalit Panchal Manish Dafaria Manoj Chandaliya Nina Kapasi Pradip Thanawala Pranay Marfatia Priya Bhansali Rimple Dedhia Ronak Rambhia Samit Saraf Sangeeta Pandit Sanjay Poddar Sanjeev Lalan Uday Sathaye Ujwal Thakrar Utsav Shah Uttamchand Jain Vanshika Dharod Vishal Poddar Vivek Shah Yatin Desai Yogesh Patel 2023-24 Chairman Uday Sathaye Ex-Officio Chirag Doshi Anand Bathiya Convenors Kinjal Bhuta Manmohan Sharma Preeti Cherian Rimple Dedhia Members Ashwini Chitale Chintan Shah E. Chaitanya Gaurav Luthra Gaurav Save Govind Goyal Janam Oza Kaustubh Deshpande Kavita Loya Lalit Panchal Mandar Telang Manish Dafaria Manoj Chandaliya Mrinal Mehta Narayan Pasari Nina Kapasi Pradip Thanawala Pranay Marfatia Priya Bhansali Rajeev Shah Samit Saraf Sangeeta Pandit Sanjay Poddar Sanjeev Lalan Uttamchand Jain Vanshika Dharod Vivek Shah Seminar, Public Relations & Membership Development Committee

1.vii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Compilers to BCAS Referencer 2023-24 We Thank Aseem Mankodi Gunja Thakrar Rimple Dedhia Ayesha Aziz Hardik Mehta Ronak Mehta Bhadresh Doshi Khushbu Shah Ronak Rambhia Chaitanya Vaidya Kunal Mehta Samit Saraf Chaitee Londhe Nina Kapasi Tanvi Vora Dnyanesh Patade Niraj Chheda Vanshika Dharod Eshank Shah Raj Khona Vijay Gajaria Vishesh Sangoi Editors Zubin Billimoria • Yatin Desai • Kinjal Bhuta Preeti Oza • Gaurav Save Mentors & Theme Pranay Marfatia • Narayan Pasari • Rajesh Bhagat Special Acknowledgements Abhay Mehta Chetan Shah Naushad Panjwani Ameet Patel Ganesh Rajgopalan Parind Mehta Anand Bathiya Govind Goyal Rutvik Sanghvi Anil Sathe Jayant Gokhale Sharad Sheth Ashutosh Pednekar Jayant Thakur Siddharth Banwat Bhavesh Vora Manish Sampat Sunil Gabhawalla Uday Sathaye Others BCAS Staff • Finesse Graphics

1.viii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Managing Committee Name 2022-23 2023-24 Tel. Off. Mob. E-mail Mihir Sheth President Ex-Officio 22703023 9820286692 [email protected] Chirag Doshi Vice President President 26115210 9820452332 [email protected] Kinjal Shah Hon. Joint Secretary Treasurer 28948484 9892100844 [email protected] Anand Bathiya Hon. Joint Secretary Vice President 61338000 9820881767 [email protected] Zubin Billimoria Treasurer Hon. Joint Secretary 23677296 9821076159 [email protected] Abhay Mehta Ex-Officio — 28930502 9820228182 [email protected] Mayur Nayak Ex-Officio Ex-Officio 67705333 9324271980 [email protected] Anand Kothari Member Member 62392777 9820253844 [email protected] Bhadresh Doshi Member — 25905080 9833605080 [email protected] Divya Jokhakar Member Member 22654882 9819046475 [email protected] Hardik Mehta Member Member — 9819023863 [email protected] Jagdish Punjabi Member Member 66416004 9820083679 [email protected] Kinjal Bhuta Member Member 22622291 9920159601 [email protected] Mahesh Nayak Member Member 66230600 9833821356 [email protected] Mandar Telang Member Hon. Joint Secretary 43484242 9819540450 [email protected] Mrinal Mehta Member Member 26839898 9820792762 [email protected] Namrata Shah Member — — 9224876552 [email protected] Preeti Cherian Member Member 62507600 9821343354 [email protected] Rutvik Sanghvi Member Member 23511878 9820703722 [email protected] Samit Saraf Member Member 69328846 9820054318 [email protected] Siddharth Banwat Member Member 49454000 9096039986 [email protected] Vishesh Sangoi — Member 49785313 9819281830 [email protected] Sneh Bhuta — Member 40733000 9920449125 [email protected] Dushyant Bhatt — Member 28930502 9820019436 [email protected]

1.ix R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Committee Chairmen Committee Name Chairman/ Co-Chairman 2022-23 2023-24 Accounting & Auditing Chairman Manish Sampat Manish Sampat Corporate & Commercial Laws Chairman Abhay Mehta Abhay Mehta Human Resource Development Chairman Co-Chairman Govind Goyal K. K. Jhunjhunwala Mihir Sheth Anand Kothari Indirect Taxation Chairman Sunil Gabhawalla Sunil Gabhawalla Internal Audit Chairman Co-Chairperson Uday Sathaye Nandita Parekh Rajesh Muni Nandita Parekh International Taxation Chairman Co-Chairman Nitin Shingala Chetan Shah Nitin Shingala Chetan Shah Journal Chairman Co-Chairman Mayur Nayak Raman Jokhakar Mayur Nayak Raman Jokhakar Seminar, Public Relations & Membership Development Chairman Narayan Pasari Uday Sathaye Taxation Chairman Co-Chairman Deepak Shah Anil Sathe Deepak Shah Anil Sathe Technology Initiative Chairman Ameet Patel Ameet Patel

1.x R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Our Presidents Name Year Late Dinubhai L. Bhat 1949-1950 Late C. C. Chokshi 1950-1951 Late Ambalal S. Thakkar 1951-1952 Late Narandas M. Shah 1952-1953 Late Homi Banaji 1953-1954 Late E. C. Pavri 1954-1955 Late Dinubhai Bhatt 1955-1956 Late M. P. Chitale 1956-1957 Late Ambalal Thakkar 1957-1958 Late Narandas Shah 1958-1959 Late G. M. Kapadia 1959-1960 Late B. N. Pardiwalla 1960-1961 Late Maganbhai L. Bhatt 1961-1962 Late R. B. Sheth 1962-1963 Late Dolatrai Vora 1963-1964 Late Arvind H. Dalal 1964-1965 Late Sham Argade 1965-1966 Ratanshaw Damanwala 1966-1967 Bansidhar S. Mehta 1967-1968 Pradyumna Shah 1968-1969 Late Baldevdas Parikh 1969-1970 Late C. C. Dalal 1970-1971 Haren Jokhakar 1971-1972 Late A. N. Lilani 1972-1973 Late Manubhai A. Parikh 1973-1974 Name Year N. V. Iyer 1974-1975 Late V. H. Kishnadwala 1975-1976 Late Bhupendra Dalal 1976-1977 Late Ishver Mehta 1977-1978 Late Narayan Varma 1978-1979 Late Shantilal Shah 1979-1980 Late Navin Kishnadwala 1980-1981 Late Hemendra Shah 1981-1982 Late Shailesh Kapadia 1982-1983 Dilip Thakkar 1983-1984 Dilip Lakhani 1984-1985 Late Ajay Thakkar 1985-1986 Late Dilip Dalal 1986-1987 Pinakin Desai 1987-1988 Harish Motiwalla 1988-1989 Nayan Parikh 1989-1990 Rajan Vora 1990-1991 Pranay Marfatia 1991-1992 Late K. C. Narang 1992-1993 Late Pradeep Shah 1993-1994 Govind Goyal 1994-1995 Kishor Karia 1995-1996 Ashok Dhere 1996-1997 Kanu Chokshi 1997-1998 Late Rajesh Kapadia 1998-1999 Name Year Uday Sathaye 1999-2000 Rajesh Shah 2000-2001 Pradip Kapasi 2001-2002 Shariq Contractor 2002-2003 Rajesh Muni 2003-2004 Gautam Nayak 2004-2005 Sanjeev Pandit 2005-2006 Himanshu Kishnadwala 2006-2007 Rajesh Kothari 2007-2008 Anil Sathe 2008-2009 Ameet Patel 2009-2010 Mayur Nayak 2010-2011 Pradip Thanawala 2011-2012 Deepak Shah 2012-2013 Naushad Panjwani 2013-2014 Nitin Shingala 2014-2015 Raman Jokhakar 2015-2016 Chetan Shah 2016-2017 Narayan Pasari 2017-2018 Sunil Gabhawalla 2018-2019 Manish Sampat 2019-2020 Suhas Paranjpe 2020-2021 Abhay Mehta 2021-2022 Mihir Sheth 2022-2023 Chirag Doshi 2023-2024

1.xi R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Contents Part 1 Direct Taxes I. Rates of Income Tax 1.1 II. Exempt income 1.12 III. Charitable Trusts 1.38 IV. Income from Salaries 1.46 V. Income from House Property 1.54 VI. Income from Business & Profession 1.56 (1) Charging provisions 1.56 (2) Specific provisions related to computation 1.57 (3) Expenses allowed as a deduction 1.58 (4) Depreciation and rates of depreciation 1.66 (5) Expenses not allowed as a deduction [S. 37(2B) to S. 40A(13)] 1.71 (6) Taxation of Firms 1.76 (7) Specific incomes chargeable to tax - Section 41, Section 43AA, Section 43CA & Section 43D 1.78 (8) Maintenance of Books of Accounts & Audit - S. 44AA & 44AB 1.81 (9) Presumptive Taxation 1.83 VII. Income from Capital Gains 1.90 (1) Capital gains on specific transfers 1.95 (2) Deductions Capital Gains 1.104 (3) Full value of consideration in respect of transfer of immovable property held as business asset – Section 43CA 1.114 VIII. Clubbing provisions 1.115 IX. Gifts Taxation - Income from Other Sources 1.117 X. Set-off and Carry Forward of Losses 1.126 XI. Amalgamation and Demergers 1.129 XII. Minimum Alternate Tax (MAT) 1.133 XIII. Alternate Minimum Tax (AMT) 1.137 XIV. Search & Seizure - Do’s and Dont’s 1.139 XV. Co-operative Society – Taxation 1.144 XVI. Statement of Financial Transactions (SFT) and Annual Information System (AIS) Taxpayer Information Summary (TIS) 1.149 XVII. Return of Income 1.157 XVIII. Taxation of Virtual Digital Asset 1.164 XIX. Interest 1.166 XX. Penalties 1.172 XXI. Audit reports under the Income-Tax Act 1.178 XXII. Accountant’s reports under the Income-Tax Act 1.179 XXIII. Rectifications 1.180 XXIV. Appeals 1.181 XXV. Revision 1.189 XXVI. TDS Chart 1.191 XXVII. Important Due Dates under Direct Taxes 1.207 XXVIII. Tax Deduction and Collection Account Number (TDCAN) 1.210 XXIX. Deductions and Rebates 1.213 XXX. Deemed Dividend 1.248 XXXI. Income Computation & Disclosure Standard 1.251 XXXII. Legal Maxims 1.268 XXXIII. Interpretation of Taxing Statutes 1.269

1.xii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication PART 2 INDIRECT TAXES I. Goods and Services Tax (GST) 2.1 (1) Supply with Schedules [S. 7 r.w. Sch. I, II, III] 2.1 (2) Classification of Goods And Services 2.5 (3) Reverse Charge Mechanism [s. 9(3) & 9(4)] 2.14 (4) Time of Supply [S. 12, 13, 14, 31] 2.24 (5) Valuation of Supplies in GST [S. 15] 2.26 (6) Place of Supply [IGST – S. 10, 11, 12, 13] 2.31 (7) Input Tax Credit (ITC) [S. 16, 17, 18] 2.43 (8) Transitional Provisions [S. 140, 142] 2.49 (9) Registration Under GST [S. 22, 23, 24, 25] 2.51 (10) Returns [S. 37, 39, 44, 52] 2.58 (11) Accounts and Records [S. 35, R. 56] 2.66 (12) E-Way Bill [R. 138] 2.69 (13) Refund [S. 54] 2.73 (14) Interest [S. 50, 54, 56] 2.77 (15) Penalties & Prosecution [S. 122, 126, 130] 2.77 (16) Power to Arrest [S. 69] R.W. PUNISHMENT FOR CERTAIN OFFENCES [S. 133] 2.81 (17) Assessments, Audit, Investigation, Advance Rulings, Appeals [S. 59 to 67, 97, 103, 107] 2.83 II. Customs 2.89 (1) Background 2.89 (2) Important Definitions [S. 2] 2.89 (3) Levy of Customs Duty [S. 12] 2.89 (4) Types of Customs Duties 2.90 (5) Classification of Goods under The Customs Tariff Act, 1975 2.92 (6) Date for Determining Rate of Duty and Valuation 2.92 (7) Valuation of Goods 2.92 (8) Procedure of Import 2.99 (9) Warehousing 2.101 (10) Audit 2.102 (11) Advance Rulings 2.102 (12) Demand, Recovery and Refund of Duty 2.103 (13) Interest 2.105 (14) Penalties [S. 111, 112, 113] 2.105 (15) Prosecution 2.107 (16) Settlement of Cases 2.108 (17) Customs Duty Drawbacks 2.110 III. Foreign Trade Policy 2023 2.112 (1) Duration of FTP 2.112 (2) Transitional Arrangements 2.112 (3) Trade Facilitation and Ease of Doing Business 2.112 (4) Authorised Economic Operator (AEO) Programme 2.114 (5) Duty Free Entitlements to Select Sectors 2.114 (6) Currency for Realisation of Export Proceeds 2.115 (7) Denomination of Export Contracts 2.115 (8) Non-Realisation of Export Proceeds 2.116 IV. Maharashtra Profession Tax 2.117 (1) Scope 2.117 (2) Registration & Enrollment [S. 5] 2.117 (3) Returns 2.118 (4) Payment of Taxes 2.119 (5) One Time Payment of Tax Scheme, 2019 OTPT Scheme w.r.e.f 01 April 2018 2.119 (6) Interest and Penalty for nonpayment of tax 2.119 (7) Exemptions 2.119 (8) Rates of Profession Tax [Sch. I] 2.120 (9) OTPT Tables 2.124

1.xiii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication PART 3 ACCOUNTING AND AUDITING I. Accounting Standards 3.1 (1) Different Sets of Accounting Standards 3.1 (2) Applicability of Accounting Standards to various entities 3.1 II. Components of Financial Statements 3.9 (1) Schedule III to the Companies Act 2013 3.9 (2) Major changes in Revised Schedule III 3.9 (3) Major Additional Requirements in Revised Schedule III 3.10 III. Synopsis of Material Differences to Key Ind ASs vis-à-vis corresponding IGAAP 3.11 INCOME AND EXPENSES 3.11 (1) Revenue Recognition 3.11 (2) Taxes on Income: Significant Differences between AS 22 and Ind AS 12 3.15 (3) Borrowing Cost: Significant Differences between AS 16 and Ind AS 23 3.19 (4) Employee Benefit Expenses: Significant Differences between AS 15 and Ind AS 19 3.20 (5) Effects of Changes in Foreign Exchange Rates: Significant Difference between AS 11 and Ind AS 21 3.22 ASSETS AND LIABILITIES 3.26 (1) Property Plant and Equipment: Significant Difference between AS 10 and Ind AS 16 3.26 (2) Intangible Assets: Significant Differences between AS 26 and Ind AS 38 3.26 (3) IND AS 40 : Investment Property (No corresponding standard under IGAAP, except that AS 13 provides for the cost model to be adopted on similar lines as for Property, Plant and Equipment) Significant Differences between AS 23, 27 and Ind AS 28 3.28 (4) Ind AS 116 : Leases (applicable w.e.f. April 1, 2019) (Significantly different from AS 19) 3.28 (5) Inventories: Significant differences between AS 2 and Ind AS 2 3.31 (6) Impairment of Assets: Significant Differences between AS 28 and Ind AS 36 3.31 (7) Provisions, Contingent Liabilities and Contingent Assets: Significant difference between AS 29 and Ind AS 37 3.32 (8) Financial Instruments - Ind AS 109, 107 and 32 3.33 (9) Fair Value Disclosures (In addition to those covered in Ind AS 113) 3.41 (10) Risk Disclosures 3.41 (11) Transfers of Financial Assets 3.42 (12) Disclosures pertaining to interest rate benchmark reforms 3.43 Group Accounts 3.43 (1) Ind AS 103: Business Combination (Significantly different from AS 14 which provides for adoption of the Purchase Method or Pooling of Interest Method and the use of fair value is optional in case of the former) 3.43

1.xiv R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication (2) Ind AS 110: Consolidated Financial Statements (Significantly different from AS 21 on the assessment of control which is primarily driven by the legal form as against substance of the arrangement / relationship under Ind AS 110 and in respect of certain other matters) 3.45 (3) Significant Differences between AS 23, 27 and Ind AS 28 3.46 IV. Presentation and Disclosure 3.48 (1) Ind AS 113: Fair Value Measurement 3.48 (2) Ind AS 1: Presentation of Financial Statements (Significantly different from AS 1 which primarily deals with Disclosure of Accounting Policies) 3.48 (3) Revised Conceptual Framework for Ind AS 3.51 V. Standards on Auditing 3.58 (1) List of Statements and Standards as on 1-4-2023 3.58 (2) Gist of Standards of Auditing 3.62 (3) New and revised SAs 3.102 VI. Reporting Provisions 3.104 (1) Some illustrative formats of Independent Auditor’s Reports 3.104 (2) Companies (Auditor’s Report) Order, 2020 (Revised 2022 edition) 3.120 VII. Tax Audit Checklist 3.126 VIII. Due Diligence Review 3.165 (1) Introduction 3.165 (2) Scope & Objectives 3.165 (3) Types of Due Diligence 3.165 (4) Approach 3.166 (5) Methodology 3.166 (6) Risk Management 3.166 (7) Undertaking from the Target Company 3.166 PART 4 CORPORATE LAWS Abbreviations 4.1 Company Law I. Types of Companies [Ch. I] 4.5 II. Incorporation of Company [Ch. II] 4.6 (1) Requirements 4.6 (2) Procedure for Incorporation of a NewCo 4.6 (3) Physical Verification of the Registered Office of the Co [R.25B] 4.13 III. Share Capital, Debentures and Issue of Securities [Ch. III, IV] 4.14 (1) Kinds of Share Capital [S. 43] and their voting rights [S. 47(1)] 4.14 (2) Publication of Authorised, Subscribed and Paid-up capital [S. 60] 4.15 (3) Types of Issue of Securities – An Overview 4.15 (4) Application of premium received on issue of shares [S. 52] 4.16 (5) Prohibition on Issue of shares at discount [S. 53] 4.16 (6) Dematerialisation of Securities [R. 9, 9A] 4.16 (7) Private Placement vis-à-vis Preferential offer 4.17 (8) Private Placement [S. 42, R. 14] 4.18 (9) Issue of Sweat Equity Shares [S. 54] 4.20 (10) Issue and Redemption of Preference Shares [S. 55] 4.22 (11) Reduction of Share Capital [S. 66] 4.23 (12) Restrictions on Purchase by the Co or giving of loans by it for purchase of its shares [S. 67] 4.24

1.xv R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication (13) Power to purchase its own shares (i.e. buy-back of securities) [S. 68, R. 17] 4.24 (14) Debentures [S. 71] 4.27 IV. Acceptance of Deposits [Ch. V] 4.28 V. Registration of Charges [Ch. VI] 4.32 VI. Management and Administration [Ch. VII] 4.33 (1) Significant Beneficial Owners [Ss. 89, 90, Co (SBO) Rules] 4.33 (2) General Meetings [Ss. 96, 100, 103] 4.36 (3) e-Voting [S. 108, R. 20] 4.37 (4) Postal Ballot [S. 110, R. 22] 4.39 (5) Ordinary & Special resolution [S. 114] 4.40 (6) Resolutions requiring special notice [S. 115] 4.40 (7) Minutes [S. 118] 4.41 VII. Declaration and Payment of Dividend [Ch. VIII] 4.41 VIII. Corporate Social Responsibility [S. 135] 4.43 IX. Accounts of Companies [Ch. IX] 4.49 (1) Accounts of Companies [S.128] 4.49 (2) Financial Statements [Ss. 129, 132, 133] 4.51 (3) Reopening of FS & Voluntary Revision of FS / BoD’s Report [Ss. 130, 131] 4.53 (4) National Financial Reporting Authority [S. 132] 4.54 X. Audit and Auditors [Ch. X] 4.56 XI. Appointment and Qualification of Directors [Ch. XI] 4.62 (1) DIN [S. 153, R. 9, 10, 11, 12, 12A] 4.62 (2) Director’s KYC [R. 12A] 4.64 (3) No. of directorships [S. 165] 4.64 (4) Vacation of office of Director [S. 167] 4.64 (5) Corporate governance under Co Act 2013 4.65 XII. Powers of the BoD [Ch. XII] 4.71 (1) Powers of the BoD [Ss. 179, 180] 4.71 (2) Disclosure of interest by director [S. 184] 4.73 (3) Loan to directors, etc. [S. 185] 4.74 (4) Loan and investment by Co [S. 186] 4.75 (5) Related Party Transactions [S. 188] 4.77 XIII. Appointment and Remuneration to Managerial Personnel [Ch. XIII] 4.80 (1) Appointment of managerial personnel 4.80 (2) Remuneration to managerial personnel 4.80 XIV. Compromises, Arrangements and Amalgamations [Ch. XV] 4.86 XV. Miscellaneous 4.91 (1) Registered Valuer [Ch. XVII] 4.91 (2) Removal of names of Companies from the Register of Companies i.e., Strike off [Ch. XVIII] 4.93 (3) Winding up [Ch. XX] 4.94 (4) Conversion of Entities into Co [Ch. XXI, Part I] 4.96 (5) Producer Company [Ch XXIA] 4.97 (6) Offences [Ss. 441, 451, 436, 438, 439] 4.98 (7) Mediation and Conciliation [S. 442] 4.100 (8) Dormant Co [S. 455] 4.101 (9) MSME disclosures 4.102 (10) MCA Version 3.0 4.102 XVI. Summary of some of the key provisions (Tables) 4.103 (1) Criteria under the Co Act 2013 triggering certain compliances – at a glance 4.103

1.xvi R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication (2) Useful life of various assets as per Part ‘C’ of Schedule II of the Co Act 2013 4.105 (3) Contents of BoD report [S. 134(3), (3A), (5) & R.8, 8A] 4.109 (4) e Forms to be filed with RoC under Co Act 2013 4.112 (5) Fees to be paid to Registrar of Companies 4.118 (6) Illustrative list of punishment for non-compliance/default under Co Act 2013 4.123 (7) Illustrative list of Statutory Registers and other records to be prepared or maintained under Co Act 2013 4.135 (8) Illustrative list of matters requiring Special Resolution as per Co Act 2013 4.136 XVII. Exemptions, Exceptions, Modifications and Adaptations under the Co Act 2013 - At a glance 4.138 (1) To a Private Company 4.138 (2) To a S. 8 Co 4.144 (3) To IFSC companies 4.147 Limited Liability Partnership I. Provisions of LLP Act read with rules thereunder 4.153 II. Salient Features vis-à-vis Partnership, Companies & LLP 4.158 III. Taxation of LLPs 4.161 IV. FDI in LLPs 4.164 V. Charts under LLP Act 2008 4.165 (1) Forms 4.165 (2) Fees payable 4.168 (3) Penalties 4.169 Securities Law I. Listing on Social Stock Exchange [Ch. X-A of ICDR] 4.174 II. Some of the key Compliances for Listed Entities under LODR 4.179 (1) Publishing Quarterly/Half Yearly/Annual Results by Listed Companies under LODR 4.179 (2) Environment, Social, Governance (ESG) through Business Responsibility Report under Reg. 34(2)(f) of LODR 4.183 (3) Related Party Transactions [Reg. 23] 4.194 (4) Conditions to be complied with upon resignation of the statutory auditor of a listed entity / material subsidiary w.r.t. limited review / audit report [SEBI CIRCULAR CIR/CFD/CMD1/114/2019 dated 18-Oct-2019] 4.197 (5) Illustrative compliance calendar under LODR for entities which has listed its specified securities 4.199 III Some of the key SAST Compliances for Listed Entities 4.201 IV. Some of the key PIT Compliances for Listed Entities 4.204 V. Some of the key AIF Regulations 4.209 Reference of Chapters / provisions under the Companies Act 2013 / Limited Liability Partnership Act 2008 / Securities Laws, as the case may be, are given in [bracket Maroon ink] PART 5 FEMA AND INTERNATIONAL TAXATION I. Foreign Exchange Management Act, 1999 (1) Introduction 5.1 (2) Residential Status under FEMA 5.1 (3) Capital & Current Account Transactions 5.2 (4) Bank Accounts in India 5.5 (5) Investment in India 5.8 (6) Acquisition and Transfer of Immovable property in India 5.15

1.xvii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication (7) Branch/Liaison/Project office in India 5.16 (8) Trade Transactions – Import & Export 5.18 (9) Borrowings from Non-Residents 5.22 (10) Overseas Direct Investments 5.34 (11) Liberalised Remittance Scheme (LRS) 5.45 (12) Cross Border Merger Regulations 5.46 (13) Acquisition and Transfer of Immovable property outside India 5.49 (14) Branch / Liaison / Project Office outside India 5.50 (15) Compounding & Contravention under FEMA 5.51 (16) Miscellaneous 5.52 II. Foreign Contribution (Regulation) Act, 2010 (1) Introduction 5.54 (2) Applicability 5.54 (3) Foreign Contribution 5.54 (4) Restrictions on accepting FC 5.54 (5) Restrictions on acceptance of foreign hospitality 5.55 (6) Registration of the association 5.55 (7) Accounts & Audit 5.55 (8) Total ban on acceptance of foreign contribution & hospitality 5.56 (9) Restriction on administrative expenses 5.56 (10) Speculative activity 5.57 (11) Transfer of FC to other registered or unregistered persons 5.57 (12) Restriction in the utilisation of foreign contribution 5.57 (13) Inspection & Seizure 5.57 (14) Penalty 5.57 (15) Declaration of receipts of foreign contribution 5.58 (16) Change of designated bank account, name, address, aim, objects or key members of the association 5.58 (17) All FCRA services online 5.58 (18) Registration to be suspended 5.59 (19) Surrender of Registration Certificate 5.59 International Taxation III. Taxation of Non-Residents 5.60 (1) Test of Residence 5.60 (2) Tax Incidence 5.66 (3) Investment income of a Nonresidents 5.66 (4) Specific incomes of Non-residents 5.69 (5) Salary income of Non-resident during short stay in India 5.71 (6) Business Income of Non-resident 5.71 (7) Indirect Transfer of Shares 5.73 (8) Taxation of Royalty & Fees for Technical Services (FTS) received by Non-residents 5.74 (9) Provisions to promote International Financial Services Centres (IFSC) 5.75 (10) Double Taxation Relief – Section 90 / 90A 5.76 (11) Special provisions for computation of capital gains on shares & debentures of Indian companies 5.77 (12) Special provisions for NRIs – Chapter XIIA 5.77 (13) Mandatory quoting of PAN (other documents as may be prescribed) by non-resident to avoid tax withholding at higher rate 5.79 (14) Applicability of Section 115JB to Foreign Companies 5.80 (15) Disclosure by Resident Indian of overseas assets and authority to sign any overseas account and other financial interests 5.80 IV. Transfer Pricing 5.81 (1) Substantive Provisions 5.81 (2) Procedural Provisions 5.88 (3) Advance Pricing Agreement (APA) 5.90 (4) Penal Provisions 5.93

1.xviii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication (5) Transfer Pricing Rules 5.94 V. Equalisation Levy 5.95 (1) Charge of Equalisation Levy 5.95 (2) Definitions 5.96 (3) General Exemption 5.96 (4) Collection and Recovery of Equalisation Levy 5.97 (5) Furnishing of statement 5.97 (6) Interest on delayed payment of Equalisation Levy 5.97 (7) Penalty for failure to deduct or pay Equalisation Levy 5.97 (8) Penalty for failure to furnish statement 5.97 VI. Form 15CA/15CB 5.98 (1) Rule 37BB 5.98 (2) Suggestive Check-list for issuing Form 15CB 5.99 (3) Consequences for non filing of Form 15CA / 15CB 5.100 (4) Revise or Cancel Form 15CA and Form 15CB 5.100 (5) Applicability of Section 206AA 5.101 VII. Multilateral Instrument – An Introduction 5.102 (1) Covered Tax Agreement 5.102 (2) Ratification of MLI 5.102 (3) Impact of MLI 5.103 (4) Mandatory Minimum Standard 5.103 (5) Reservation 5.105 (6) Optional Provision 5.105 VIII. Double Taxation Avoidance Agreements 5.106 PART 6 ALLIED LAWS I. Chartered Accountants Act and Regulations 6.1 II. Insolvency and Bankruptcy Code, 2016 (IBC) 6.44 III. Maharashtra Public Trusts Act, 1950 as amended by Maharashtra Public Trusts (Second Amendment) Act, 2017 6.52 IV. Maharashtra Stamp Act, 1958 6.58 The Maharashtra E-Payment of Stamp Duty and Refund Rules, 2013 6.69 The Maharashtra e-Registration and e-Filing Rules, 2013 6.72 V. The Micro, Small and Medium Enterprises Development Act, 2006 6.74 VI. NBFC Regulations 6.89 VII. Partnership Firms – Procedures (Maharashtra) 6.101 VIII. Period of Preservation of Accounts/Records under different laws 6.105 IX. Prevention of Money Laundering Act, 2002 6.108 X. Real Estate (Regulation & Development) Act, 2016 6.110 XI. Related Party Transactions under various Laws 6.118 XII. Right to Information Act, 2005 6.125 XIII. Startup Regulation Framework in India 6.130 XIV. Succession and Wills 6.138 XV. The Banning of Unregulated Deposit Schemes Act, 2019 6.145 XVI. The Benami Transactions (Prohibition) Amendment Act, 2016 6.148 XVII. Valuation Reports – Requirements under various Laws 6.150 XVIII. Leave and Licences 6.155

Direct Taxes 1.i R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Direct Taxes Contents Subject Page I. Rates of Income Tax 1.1 II. Exempt income 1.12 III. Charitable Trusts 1.38 IV. Income from Salaries 1.46 V. Income from House Property 1.54 VI. Income from Business & Profession 1.56 (1) Charging provisions 1.56 (2) Specific provisions related to computation 1.57 (3) Expenses allowed as a deduction 1.58 (4) Depreciation and rates of depreciation 1.66 (5) Expenses not allowed as a deduction [S. 37(2B) to S. 40A(13)] 1.71 (6) Taxation of Firms 1.76 (7) Specific incomes chargeable to tax - Section 41, Section 43AA, Section 43CA & Section 43D 1.78 (8) Maintenance of Books of Accounts & Audit - S. 44AA & 44AB 1.81 (9) Presumptive Taxation 1.83 VII. Income from Capital Gains 1.90 (1) Capital gains on specific transfers 1.95 (2) Deductions Capital Gains 1.104 (3) Full value of consideration in respect of transfer of immovable property held as business asset – Section 43CA 1.114 VIII. Clubbing provisions 1.115 IX. Gifts Taxation - Income from Other Sources 1.117 X. Set-off and Carry Forward of Losses 1.126 XI. Amalgamation and Demergers 1.129 XII. Minimum Alternate Tax (MAT) 1.133 XIII. Alternate Minimum Tax (AMT) 1.137 XIV. Search & Seizure - Do’s and Dont’s 1.139 XV. Co-operative Society – Taxation 1.144 XVI. Statement of Financial Transactions (SFT) and Annual Information System (AIS) Taxpayer Information Summary (TIS) 1.149 XVII. Return of Income 1.157 XVIII. Taxation of Virtual Digital Asset 1.164 XIX. Interest 1.166

Direct Taxes 1.ii R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Subject Page XX. Penalties 1.172 XXI. Audit reports under the Income-Tax Act 1.178 XXII. Accountant’s reports under the Income-Tax Act 1.179 XXIII. Rectifications 1.180 XXIV. Appeals 1.181 XXV. Revision 1.189 XXVI. TDS Chart 1.191 XXVII. Important Due Dates under Direct Taxes 1.207 XXVIII. Tax Deduction and Collection Account Number (TDCAN) 1.210 XXIX. Deductions and Rebates 1.213 XXX. Deemed Dividend 1.248 XXXI. Income Computation & Disclosure Standard 1.251 XXXII. Legal Maxims 1.268 XXXIII. Interpretation of Taxing Statutes 1.269

Rates of Income Tax 1.1 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication A. Normal Rates 1. Tax Rates for Individuals/HUF/AOP/BOI under Regular (Old) Regime For A.Y. 2023-24 & A.Y. 2024-25 (Refer Notes) Income Rate (%) Up to ` 250,000* NIL ` 250,001 to ` 500,000 5% ` 500,001 to ` 1,000,000 20% Above ` 1,000,000 30% Rates of Surcharge for A.Y. 2023-24 & A.Y. 2024-25 Sr. No. Surcharge in case Total Income exceeds Rate of Surcharge (%) (a) ` 50,00,000 (including the income under the provisions of Section 111A, 112 and Section 112A) 10% (b) ` 1,00,00,000 (including the income under the provisions of Section 111A, 112 and Section 112A) 15% (c) ` 2,00,00,000 (excluding the income under the provisions of Section 111A, 112 and Section 112A) 25% (d) ` 5,00,00,000 (excluding the income under the provisions of Section 111A, 112 and Section 112A) 37% (e) ` 2,00,00,000 (including the income under the provisions of Section 111A, 112 and Section 112A), if it is not covered by (c) & (d) above 15% I. Rates of Income Tax Surcharge on the amount of income-tax payable in accordance with the provisions of Section 111A, 112 and 112A shall not exceed 15% Health and Education Cess @ 4% leviable on tax including surcharge In case of AOP having only corporate members, the rate of surcharge would be restricted to 15%. No surcharge and Cess will be applicable on advance tax computed on income chargeable u/s 115AD(1)(a) of a specified fund. Notes: i. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years will be ` 3,00,000/- and for a resident individual who is of the age of 80 years or more will be ` 5,00,000/- ii. Rebate up to ` 12,500/- from tax if taxable income is up to ` 5,00,000/-, to a resident individual iii. Marginal relief available. iv. From A.Y. 2024-25, assessee intending to opt for the Regular (old) Regime of tax has to specifically exercise an option in a prescribed form in the following manner: In case of an assessee having income from business or profession option has to be exercised on or before the due date of filing return u/s 139(1) for an assessment year and once such option is exercised for any previous year, it can be withdrawn only once and thereafter the assessee shall not be eligible to again opt for the Regular (old) Regime. In case of any other assessee, option can be exercised at the time of filing return of income u/s 139(1).

Direct Taxes 1.2 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication 2. Tax Rates for Individual/HUF/AOP/BOI (other than co-operative societies) as per the provisions of Section 115BAC under Default (New) Tax Regime Income Rate (%) u/s. 115BAC(1A) A.Y. 2024- 25 Rate (%) u/s. 115BAC(1) A.Y. 2023- 24 Up to ` 2,50,000 Nil Nil ` 2,50,001 to ` 3,00,000 Nil 5% ` 3,00,001 to ` 5,00,000 5% 5% ` 5,00,001 to ` 6,00,000 5% 10% ` 6,00,001 to ` 7,50,000 10% 10% ` 7,50,001 to ` 9,00,000 10% 15% ` 9,00,001 to ` 10,00,000 15% 15% ` 10,00,001 to ` 12,00,000 15% 20% ` 12,00,001 to ` 12,50,000 20% 20% ` 12,50,001 to ` 15,00,000 20% 25% Above ` 15,00,000 30% 30% Notes: i. From A.Y. 2024-25 onwards, tax regime u/s 115BAC will also be applicable for AOP (other than co-operative societies), BOIs and AJIs in addition to Individuals and HUFs. Tax regime u/s 115BAC will be the default tax regime, unless option to opt out of the same is exercised by an assessee. ii. Rebate up to ` 25,000/- from tax if taxable income is up to ` 7,00,000/-, to a resident individual. Marginal relief shall be available. iii. The above concessional tax rates can be opted after foregoing certain exemptions/ deductions such as: a. Leave Travel Concession – section 10(5) b. House Rent Allowance – section 10(13A) c. Specified allowances exempt under section 10(14) (allowances granted to employees other than transport allowance, conveyance allowance, per-diems and travel and transfer allowance) d. Allowances to MPs/MLAs – section 10(17) e. Clubbed income of minor upto ` 1,500 – section 10(32) f. Exemption for unit in SEZ – section 10AA g. Deductions (including profession tax) from salary (other than standard deduction under clause (ia))– section 16 h. Interest in respect of Self Occupied Property – section 24(b) i. Set off of loss under the head income from house property against other heads – section 71 j. Additional depreciation – section 32(1) (iia) k. Deduction under sections 32AD, 33AB and 33ABA l. Specified deduction for donations or for expenditure on scientific research – section 35(1)(ii)/(iia)/(iii) or section 35(2AA) m. Weighted deduction for expenditure on specified business/agricultural extension project – section 35AD and section 35CCC n. Deductions under Chapter VI-A (such as section 80C, 80D, 80 TTA, 80TTB, 80G etc.) other than the following:-

Rates of Income Tax 1.3 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication i. 80CCD(2) – employer contribution in notified pension scheme ii. 80JJAA – employment of new employees iii. 80LA – IFSC centre o. Exemption in respect of voucher granted for free food and beverages p. Any exemption or deduction for allowances or perquisites provided under any other law iv. There is no separate higher threshold for senior and very senior citizens in the optional scheme. v. Rates of Surcharge applicable to Individuals/ HUFs/AOPs/BOIs under the old regime shall continue to apply on tax u/s 115BAC(1A), however, the same shall be restricted to maximum of 25%. Surcharge on income from dividend and income taxable under sections 111A, 112 and 112A shall be restricted to 15%. In case of AOP having only corporate members, the rate of surcharge would be restricted to 15%. vi. No surcharge and Cess will be applicable on advance tax computed on income chargeable u/s 115AD(1)(a) of a specified fund. vii. Cess remain unchanged and continues to be 4%. viii. Once this option is exercised, provisions relating to Alternate Minimum Tax and Credit relating to the same will not be applicable. 3. Tax Rates for Firms (including Limited Liability Partnership) Asst. Year Tax % Surcharge % Health & Education Cess% Total % 2023-24 30 0/12 4 31.20/34.944 2024-25 30 0/12 4 31.20/34.944 Surcharge applicable in case of firm having a total income exceeding ` 1,00,00,000/-. Notes: i. Marginal relief available. 4. Tax Rates for Domestic Companies (not exercising option to pay tax as per the provisions of Section 115BAA or Section 115BAB) Asst. Year Tax % Surcharge % Health & Education Cess% Total % Conditions 2023-24 30 0/7/12 4 31.2/33.384/34.944 Turnover or gross receipts for the domestic company in previous year 2020-21 exceeds ` 400 crore. 25 0/7/12 4 26/27.82/29.12 Turnover or gross receipts for the domestic company in previous year 2020-21 doesn’t exceed ` 400 crore.

Direct Taxes 1.4 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Asst. Year Tax % Surcharge % Health & Education Cess% Total % Conditions 2024-25 30 0/7/12 4 31.2/33.384/34.944 Turnover or gross receipts for the domestic company in previous year 2021-22 exceeds ` 400 crore. 25 0/7/12 4 26/27.82/29.12 Turnover or gross receipts for the domestic company in previous year 2021-22 doesn’t exceed ` 400 crore. Surcharge @ 7% if total income above ` 1,00,00,000/- and Surcharge @ 12% applicable if total income above ` 10,00,00,000/-. Notes: i. Marginal relief available. 5. Tax Rates for Domestic Companies exercising an option to pay tax as per the provisions of Section 115BAA (effective from A.Y. 2020-21) Type of Income Tax % Surcharge % Health & Education Cess% Total % Total Income 22 10 4 25.168 Surcharge is applicable irrespective of the amount of the total income The income to which any other provisions of Chapter XII are applicable shall be charged to tax at the rates as provided in those respective provisions. It shall be subject to surcharge of 10% and Health & Education Cess of 4%. The provisions of Section 115JAA and Section 115JB shall not apply to the companies exercising option to pay tax under Section 115BAA Applicability This option is available to any domestic company which satisfies certain conditions and which exercises the option on or before the due date specified under Section 139(1) for furnishing returns of income for any previous year relevant to the assessment year commencing on or after 1st April, 2020. Conditions a. The total income of the company shall be computed without any deductions under the provisions of Section 10AA or Section 32(1) (iia) i.e. additional depreciation or Section 32AD or Section 33AB or Section 33ABA or Section 35(1)(ii), (iia) or (iii) or Section 35(2AA) or Section 35(2AB) or Section 35AD or Section 35CCC or Section 35CCD or Chapter VI-A (other than the provisions of Section 80JJAA or 80M or 80LA). b. Carried forward losses or unabsorbed depreciation which are attributable to any of the above referred deductions (including deemed losses or depreciation under Section 72A) shall not be available for set off and it shall be deemed that full effect have been given to such losses or depreciation. c. The total income shall be computed by claiming depreciation under Section 32 (other than additional depreciation) which shall be determined in a prescribed manner.

Rates of Income Tax 1.5 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication 6. Tax Rates for Domestic Companies exercising an option to pay tax as per the provisions of Section 115BAB (effective from A.Y. 2020-21) Type of Income Tax % Surcharge % Health & Education Cess% Total % Income derived from or incidental to manufacturing or production of an article or thing 15 10 4 17.16 Income which is neither derived from nor incidental to manufacturing or production of an article or thing 22 10 4 25.168 Short-term capital gain derived from transfer of a capital asset on which no depreciation is allowable 22 10 4 25.168 Excess profits determined by the AO under subsection (6) 30 10 4 34.32 Surcharge is applicable irrespective of the amount of the total income The income to which any other provisions of Chapter XII are applicable shall be charged to tax at the rates as provided in those respective provisions. It shall be subject to surcharge of 10% and Health & Education Cess of 4%. The provisions of Section 115JB shall not apply to the companies exercising option to pay tax under Section 115BAB Applicability This option is available to a domestic company which has been set-up and registered on or after 1st October, 2019 and engaged in the business of manufacture or production of any article or thing. The option is required to be exercised on or before the due date specified under Section 139(1) for furnishing the first of the returns of income for any previous year relevant to the assessment year commencing on or after 1st April, 2020. Conditions a. Manufacturing or production of an article or thing has been commenced on or before 31st March, 2024. b. The business is not formed by splitting up, or the reconstruction, of a business already in existence. c. The company does not use any machinery or plant previously used for any purpose. The usage of second-hand machinery or plant to the extent of 20% of the total value of machinery or plant and usage of machinery or plant which were previously used outside India are permitted. d. The company does not use any building previously used as a hotel or a convention centre in respect of which deduction under Section 80-ID has been allowed. e. The company is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it. The company engaged in the business of generation of electricity shall be eligible to opt for taxation as per the provisions of this Section. The following businesses would not be considered as a business of manufacture or production of any article or thing: • Development of computer software in any form or in any media;

Direct Taxes 1.6 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication • Mining; • Conversion of marble blocks or similar items into slabs; • Bottling of gas into cylinder; • Printing of books or production of cinematograph film; or • Any other business as may be notified by the Central Government in this behalf f. The total income of the company shall be computed without any deductions under the provisions of Section 10AA or Section 32(1) (iia) i.e. additional depreciation or Section 32AD or Section 33AB or Section 33ABA or Section 35(1)(ii), (iia) or (iii) or Section 35(2AA) or Section 35(2AB) or Section 35AD or Section 35CCC or Section 35CCD or Chapter VI-A (other than the provisions of Section 80JJAA or 80M). g. Carried forward losses or unabsorbed depreciation which are deemed to be so under Section 72A and which are attributable to any of the above referred deductions shall not be available for set off and it shall be deemed that full effect have been given to such losses or depreciation. h. The total income shall be computed by claiming depreciation under Section 32 (other than additional depreciation) which shall be determined in a prescribed manner. 7. Tax Rates for foreign companies (on income other than Royalty and Fees for Technical Services) Asst. Year Tax % Surcharge % Health & Education Cess% Total % 2023-24 40 0/2/5 4 41.60/42.432/43.68 2024-25 40 0/2/5 4 41.60/42.432/43.68 Notes: i. Surcharge @ 2% if total income is above ` 1,00,00,000/- and up to ` 10,00,00,000/- and @ 5% if total income above ` 10,00,00,000/-. ii. Marginal relief available. 8. Tax on Buy Back of Shares Income Tax % Surcharge % Health & Education Cess % Total % Buy-back of shares by domestic companies 20 12 4 23.296

Rates of Income Tax 1.7 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication 9. Tax Rates for Co-operative Society (not exercising option to pay tax as per the provisions of Section 115BAD or Section 115BAE) Income A.Ys 2023-24 & 2024-25 Rate % Health Education Cess Total % Up to ` 10,000 10 4 10.40 ` 10,001 to ` 20,000 20 4 20.80 ` 20,001 and above 30 4 31.20 Surcharge of 12% applicable, if total income exceeds ` 1,00,00,000/-. Notes: i. Marginal relief available. 10. Tax Rates for Resident Co-operative Society exercising option to pay tax as per the provisions of Section 115BAD (effective from A.Y. 2021-22) Type of Income Tax % Surcharge % Health & Education Cess% Total % Total Income 22 10 4 25.168 Surcharge is applicable irrespective of the amount of the total income The income to which any other provisions of Chapter XII are applicable shall be charged to tax at the rates as provided in those respective provisions. It shall be subject to surcharge of 10% and Health & Education Cess of 4%. The provisions of Section 115JC and Section 115JD shall not apply to the co-operative societies exercising option to pay tax under Section 115BAD Applicability This option is available to any resident cooperative society which satisfies certain conditions and which exercises the option on or before the due date specified under Section 139(1) for furnishing returns of income for any previous year relevant to the assessment year commencing on or after 1st April, 2021. Conditions a. The total income of the co-operative society shall be computed without any deductions under the provisions of Section 10AA or Section 32(1)(iia) i.e. additional depreciation or Section 32AD or Section 33AB or Section 33ABA or Section 35(1)(ii), (iia) or (iii) or Section 35(2AA) or Section 35(2AB) or Section 35AD or Section 35CCC or Chapter VI-A (other than the provisions of Section 80JJAA or 80LA). b. Carried forward losses or unabsorbed depreciation which are attributable to any of the above referred deductions shall not be available for set off and it shall be deemed that full effect have been given to such losses or depreciation. c. The total income shall be computed by claiming depreciation under Section 32 (other than additional depreciation) which shall be determined in a prescribed manner.

Direct Taxes 1.8 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Tax Rates for Resident Co-operative Society exercising option to pay tax as per the provisions of Section 115BAE (effective from A.Y. 2024-25) Type of Income Tax % Surcharge % Health & Education Cess% Total % Income derived from or incidental to manufacturing or production of an article or thing 15 10 4 17.16 Income which is neither derived from nor incidental to manufacturing or production of an article or thing 22 10 4 25.168 Short-term capital gain derived from transfer of a capital asset on which no depreciation is allowable 22 10 4 25.168 Excess profits determined by the AO under subsection (6) 30 10 4 34.32 Surcharge is applicable irrespective of the amount of the total income The income to which any other provisions of Chapter XII are applicable shall be charged to tax at the rates as provided in those respective provisions. It shall be subject to surcharge of 10% and Health & Education Cess of 4%. The provisions of Section 115JB shall not apply to the companies exercising option to pay tax under Section 115BAE usage of machinery or plant which were previously used outside India are permitted. d. The co-operative society is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to, or distribution of, such article or thing manufactured or produced by it. The cooperative society engaged in the business of generation of electricity shall be eligible to opt for taxation as per the provisions of this Section. The following businesses would not be considered as a business of manufacture or production of any article or thing: • Development of computer software in any form or in any media; • Mining; • Conversion of marble blocks or similar items into slabs; • Bottling of gas into cylinder; • Printing of books or production of cinematograph film; or Applicability This option is available to a co-operative society resident in India which has been set-up and registered on or after 1st April, 2023 and engaged in the business of manufacture or production of any article or thing. The option is required to be exercised on or before the due date specified under Section 139(1) for furnishing the first of the returns of income for any previous year relevant to the assessment year commencing on or after 1st April, 2020. Conditions a. Manufacturing or production of an article or thing has been commenced on or before 31st March, 2024. b. The business is not formed by splitting up, or the reconstruction, of a business already in existence. c. The co-operative society does not use any machinery or plant previously used for any purpose. The usage of second-hand machinery or plant to the extent of 20% of the total value of machinery or plant and

Rates of Income Tax 1.9 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication • Any other business as may be notified by the Central Government in this behalf e. The total income of the company shall be computed without any deductions under the provisions of Section 10AA or Section 32(1)(iia) i.e. additional depreciation or Section 33AB or Section 33ABA or Section 35(1)(ii), (iia) or (iii) or Section 35(2AA) or Section 35AD or Section 35CCC or Chapter VI-A (other than the provisions of Section 80JJAA). f. Carried forward losses or unabsorbed depreciation which are attributable to any of the above referred deductions shall not be available for set off and it shall be deemed that full effect have been given to such losses or depreciation. g. The total income shall be computed by claiming depreciation under Section 32 (other than additional depreciation) which shall be determined in a prescribed manner. 11. Income tax on unexplained income chargeable to tax u/s. 115BBE Income Tax % Surcharge % Health & Education Cess % Total % 60 25 4 78 B. Special Rates 1. Long Term Capital Gains a. On Equity shares and units Long term capital gains arising on transfer of equity shares on a recognised stock exchange in India or units of an equity oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable. For all Assessees A.Y.s 2023-24 & 2024-25 Up to ` 1,00,000 Nil Above ` 1,00,000 10% b. On other assets and equity shares, units except falling in (a) above for A.Ys. 2023- 24 & 2024-25 Income Tax on Long Term Capital Gains Resident Individual or HUF 20% Domestic Companies 20% Non-residents 20% NRIs (for gains u/s. 115E) 10% Any other case 20% Surcharge and Health and Education Cess as applicable Notes: i. In case of Resident Individual and HUF, where tax liability arises only because of the inclusion of long term capital gains, tax to be levied at 20% or 10% as the case may be, on the excess over the minimum exemption limit. ii. No deduction under Chapter VIA (80C to 80U). 2. Short Term Capital Gains a. On Equity shares and units Short term capital gains arising on transfer of equity shares on recognised stock exchange in India or units of an Equity Oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable. For All Assessees 15% plus (Health and Education Cess) as applicable Notes: i. In case of resident individual and HUF, relief from STCG available in respect of the amount by which the taxable income other than STCG falls short of Basic Exemption Limit.

Direct Taxes 1.10 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication ii. No deduction under Chapter VI-A (80C to 80U). b. On Assets other than in (a) above On Short Term Capital Gains on Assets other than in (a) above At normal slab rates 3. Minimum Alternate Tax payable by Companies – As a percentage of Book Profit Type of companies Domestic Company Foreign Company AY. 2023-24 & A.Y. 2024-25 Below ` 1 crore ` 1 crore to ` 10 crore Above ` 10 crore Below ` 1 crore ` 1 crore to ` 10 crore Above ` 10 crore Rate of Tax 15 15 15 15 15 15 Surcharge – 7 12 – 2 5 Health & Education Cess 4 4 4 4 4 4 Effective Rate 15.6 16.692 17.472 15.6 15.912 16.38 Notes: (i) MAT Credit allowed to be carried forward for set off for 15 years. (ii) Marginal relief available. (iii) Rate of Tax will be 9% if the assessee is a unit located in an International Financial Services Centre and derives income in convertible foreign exchange. (iv) The provisions of Section 115JB are not applicable to the company who has exercised the option referred to under Section 115BAA or 115BAB. 4. Alternate Minimum Tax (AMT) payable by Non-Corporate - As percentage of Adjusted Total Income A.Y.s 2023-24 & 2024-25 Below ` 1 crore Above ` 1 crore Rate of Tax 18.5 18.5 Surcharge – 12 Health & Education Cess 4 4 Effective Rate 19.24 21.5488 Notes: (i) AMT credit allowed to be carried forward for set off for 15 years (ii) Marginal relief available. (iii) Rate of Tax will be 9% if the assessee is a unit located in an International Financial Services Centre and derives income in convertible foreign exchange. (iv) The provisions of Section 115JC are not applicable to the person who has exercised the option referred to under Section 115BAC or 115BAD. 5. Taxation of Virtual Digital Assets effective 1st April, 2023 Tax on income from transfer of virtual digital asset 30% plus (Surcharge and Health and Education Cess) as applicable Notes: (i) Deduction in respect of any expenditure (other than cost of acquisition, if any) or allowance or set off of any loss shall not be allowed. (ii) Set off of loss from transfer of virtual digital asset against income computed under any other provision of the Act shall not be allowed. (iii) Carry forward of loss arising on transfer of virtual digital asset to succeeding years shall not be allowed.

Rates of Income Tax 1.11 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication 6. Tax on undisclosed income groups – 60% tax rate on income u/s. 68, 69, 69A, 69B and 69C of the Income Tax Act.,1961 and additional surcharge of 25% on the tax. 7. Advance Tax Assessment Years 2023-24 & 2024-25 Advance Tax Obligation (If tax payable exceeds ` 10,000) Due Date of Installment payable on or before Amt. Payable as a % of Tax (For all Assessee’s) 15th June 15% 15th September 45% 15th December 75% 15th March Balance No advance tax to be paid by senior citizen if he/ she does not have income under head “Profit and Gains of Business or Profession”. An eligible assessee engaged in a business referred in Section 44AD/44ADA is liable to pay advance tax in a single instalment on or before the 15th of March every financial year. *MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52] **AMT also subject to Advance tax. 2

Direct Taxes 1.12 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication II. Exempt income Section Type of assessee Type of income Exempt amount Remarks 10(1) All assesses Agricultural income No limit See definition – Section 2(1A). Income derived from any land or building for any purpose other than agriculture would be taxable 10(2) Member of HUF Sum paid out of income of family or income of impartible estate No limit Subject to the provision of Section 64(2) 10(2A) A person being a partner of a firm Share in the total income of the firm separately assessed as a firm No limit For share of the partner see Explanation to this sub-section 10(4)(i) Non-resident Interest on specified securities or bonds including income by way of premium on redemption of such bonds No limit No securities or bonds to be specified on or after 1 June 2002. For specified securities see Notification No. SO-3331, dated 19 October 1965. 10(4)(ii) Individual, being resident outside India under FEMA permitted by RBI to maintain NRE account Interest from NRE account No limit The exemption which was withdrawn from 1 April 2005 has been restored. Person resident outside India is defined under Section 2(w) of the FEMA 10(4C) Non-resident, not being a company, or to a foreign company Interest on monies borrowed by an Indian company or business trust by issue of rupee denominated bonds to a source outside India refereed in Section 194LC(2)(ia) No limit Applicable to monies borrowed during the period 17 September 2018 to 31 March 2019 10(4D) Specified Fund On transfer of capital assets referred to in Section 47(viiab) Such income of Nonresident • Transfer is on a recognised stock exchange in any International Financial Service Centre;

Exempt income 1.13 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks • Consideration is paid or payable in convertible foreign exchange 10(4E) Non-resident Income on : • transfer of non-deliverable forward contracts or offshore derivative instruments or overthe-counter derivates; or • distribution of income on offshore derivative instruments (w.e.f. 1st April, 2024) No limit To the extent of income chargeable under section 115AD to the offshore banking unit Non-deliverable forward contracts or offshore derivative instruments or over-the-counter derivates entered into with an offshore banking unit of an IFSC as referred to in sub-section (1A) of Section 80LA which fulfils such conditions as may be prescribed. 10(4F) Non-resident Royalty No limit • Royalty on account of lease of an aircraft or a ship in a previous year paid by a unit of an IFSC as referred to in sub-section (1A) of section 80LA, if unit: — is eligible for deduction under Section 80LA(1A) — commenced business operations on or before 31st March, 2024 10 (4G) (w.e.f. 1st April, 2023) Non-resident Income from portfolio of securities or financial products or funds To the extent such income accrues or arises outside India and is not deemed to accrue or arise in India Portfolio of securities or financial products or funds , managed or administered by any portfolio manager on behalf of such nonresident in an account maintained with an Offshore Banking Unit in any International Financial Services Centre as referred to

Direct Taxes 1.14 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks in sub-section (1A) of section or such activity carried on by any other person as may be notified by the government in the Official Gazette 10(5) Individual (For himself and his family) Travel concession or assistance received or due from his employer/ former employer Amount actually incurred for the purpose of travel • Air economy fare of the national carrier (Indian Airlines or Air India) by the shortest route to the place of destination • Air-conditioned first-class rail fare by the shortest route to the place of destination. • — Where a recognised public transport system exists, the first class or deluxe class fare on such transport by the shortest route to the place of destination. — Where no recognised public transport system exists, the air-conditioned firstclass rail fare, for the distance of the journey by the shortest route, as if the journey has been performed by rail. Value in lieu of any travel concession or assistance received or due under LTC cash voucher scheme ` 36,000 per person or 1/3rd of specified expenditure whichever is less • Expenditure to be incurred in the specified period of 12th October, 2020 to 31st March, 2021 • Expenditure to be made on goods and/or services liable to GST at >=12% • Employee exercises option for the deemed LTC fare in lieu of applicable LTC in block year 2018-21 • Payment to be made through banking channels

Exempt income 1.15 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks • Applicable for F.Y. 2020-21 ONLY 10(7) Citizen of India Allowances or perquisites by Government for services rendered outside India No limit — 10(10BC) Individual or his legal heir Compensation from Central Government, State Government or Local authorities on account of any disaster No limit Exemption not allowed on the amount allowed as deduction under any other Section under the Income-tax Act on account of loss or damage caused by such disaster 10(10D) All assessees Any sum received under a life insurance policy including bonus No limit The following amount shall not be exempt: • Amount received from an insurance company on death of dependent being a person with disability in respect of an insurance policy issued to him for the maintenance of such dependent • Amount received under a Keyman Insurance Policy (for definition of “Keyman Insurance Policy” refer to Explanation to this subsection) • Sum received under an insurance policy issued on or after 1 April 2003, where premium payable for any of the years exceeds 20% of the actual capital sum assured unless such sum is received on death of a person • Sum received under an insurance policy issued on or after 1 April 2012, where premium payable for any

Direct Taxes 1.16 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks of the years exceeds 10% of the actual capital sum assured unless such sum is received on death of a person. • Sum received by a person with a disability or severe disability as referred to Section 80U under an insurance policy issued on or after 1st April 2013, where premium payable for any of the years exceeds 15% of the actual capital sum assured, unless such sum is received on death of a person. • Sum received with respect to a unit linked insurance policy issued on or after 1st February, 2021 if aggregate premium payable for any previous year during the term > ` 2,50,000. • Sum received from multiple unit linked insurance policies issued on or after 1st February, 2021- no exemption only w.r.t. unit linked insurance policy where aggregate premium payable for any previous year during the term > ` 2,50,000. (Exemption will be available on proceeds received by policyholder’s dependents on the death of the policyholder)

Exempt income 1.17 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks • Sum received with respect to any life insurance policy (other than unit-linked insurance policy) issued on or after 1st April, 2023 if premium payable for any previous year during the term > ` 5,00,000. • In case of sum received with respect to multiple life insurance policies (other than unit-linked insurance policies) issued on or after 1st April 2023, in respect of sum received under life insurance policies if aggregate premium payable for any previous year during the term > ` 5,00,000 in respect of such policies 10(11) All assessees Payments from a statutory P.F. or public P.F. or from notified P.F. No limit For notified P.F., refer Notification No. SO-2430 dated 2nd July, 1968. No exemption w.r.t interest accrued on statutory provident fund or notified provident fund if contribution exceeds ` 2,50,000 in any previous year on or after 1st April, 2021. (` 5,00,000 where the contribution is made to a fund in which there is no contribution of the employer) 10(11A) Individual Payment from an account opened under Sukanya Samriddhi Account Scheme No limit The Explanatory Memorandum to the Finance Act clarifies that interest accruing in such account is exempt from tax

Direct Taxes 1.18 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 10(12) Salaried employee Accumulated balances due from recognised Provident Fund No limit • Employee has put in 5 or more years of service or termination of service is due to his ill health or closure of employers business or the balance from recognised P.F. is transferred to another recognised fund or the balance from recognised P.F. is transferred to his account under the pension scheme referred in Section 80CCD and notified by the Central Government. No exemption w.r.t interest accrued on recognized provident fund if contribution exceeds Rs.2,50,000 in any previous year on or after 1st April, 2021. (Rs. 5,00,000 where the contribution is made to a fund in which there is no contribution of the employer 10(12A) All assessees Accumulated balance from NPS on closure of account or opting out of the scheme 60% of the amount received w.e.f AY 2020-21. (40% up to AY 2019-20) However, if entire amount received by the nominee on death of assessee is exempt 10(12B) Salaried employee Payment from NPS Trust on account of partial withdrawal from employee’s account (under pension scheme referred in Section 80CCD) 25% of the amount of contributions made by the employee Withdrawal is made in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and the regulations made thereunder 10(12C) Person enrolled under Agnipath Scheme or his nominee Payment from Agniveer Corpus Fund No limit

Exempt income 1.19 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 10(13) Salaried employee Payment from approved superannuation fund No limit • Payment is on death or on retirement after specified fund, age or his becoming incapacitated prior to such retirement • Amount transferred from approved superannuation fund to NPS scheme is exempt from tax 10(15)(i) All assessees Income by way of interest, premium on redemption or other payment from notified securities, bonds, certificates, etc. issued and notified by Central Government Limits as specified in the Notification — 10(15)(iib) Individual or HUF Interest on notified capital investment bonds No limit No bonds to be specified on or after 1st June, 2002 10(15)(iic) Individual or HUF Interest on notified Relief Bonds No limit — 10(15)(iid) Individual who is an NRI at the time of acquisition of the bonds or his successor or the donee Interest on notified Bonds being NRI Bonds, 1988, NRI Bonds (second series) issued by SBI No limit No exemption available in the year of premature encashment. No bonds to be specified on or after 1 June 2002 10(15)(iv)(c) Non-resident Interest payable by industrial undertaking on money borrowed or debt incurred prior to 1st June, 2001 in foreign country in respect of purchase of raw materials, components or plant and machinery and approved by No limit —

Direct Taxes 1.20 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks Central Government including usance interest payable outside India by an undertaking engaged in the business of ship breaking in respect of purchase of a ship from outside India 10(15)(iv)(fa) Non-resident or Not ordinarily resident Interest paid by a scheduled bank on RBI approved foreign currency deposits, FCNR and RFC accounts No limit The exemption which was withdrawn from 1 April 2005 has been restored. 10(15)(vi) All assessees Interest on Gold Deposit Bond Scheme, 1999 or Deposit certificate issued under the Gold Monetisation Scheme, 2015 No limit — 10(15)(vii) All assessees Interest on notified bonds issued by a local authority or by a State Pooled Finance Entity No limit Ahmedabad notified vide 812(E) dated 21 August 2001, 364(E) dated 16 March 2004, 407(E) dated. 24 March 2005, and 333(E) dated 8 March 2007, Hyderabad notified vide 275(E) dated 4 March 2002, and 1482(E) dated 29 December 2003, Nashik notified vide 269(E) dated 7 March 2003. Tamil Nadu notified vide 545(E) dated 12 May 2003, Chennai notified vide 392(E) dated 23 March 2004, 402(E) dated 23 March 2005 and 408(E) dated 24 March 2005, Karnataka notified vide 941(E), dated 20 August 2004, and 729(E) dated 27 May 2005, Visakhapatnam notified vide 1481(E) dated

Exempt income 1.21 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 29 December 2003, Nagpur notified vide 10(E) dated 4 January 2007; Tax free Pooled Finance Development Bonds vide 82(E) dated 4 January 2008 and second tranche of the same bonds vide 1667(E) dated 14 July 2010 10(15)(viii) Non-resident or Not ordinarily resident Interest on deposit made on or after 1st April 2005 in an offshore banking unit referred to in Special Economic Zones Act, 2005 — — 10(15)(ix) Non-resident Interest payable by a unit located in International Financial Services Centre on monies borrowed by it on or after 1st September 2019 No limit ‘International Financial Services Centre’ is defined under Section 2(q) of the Special Economic Zones Act, 2005 ‘Unit’ is defined under Section 2(zc) of the Special Economic Zones Act, 2005 10(16) Individual Scholarship granted to meet cost of education No limit — 10(17A) All assessees Payment in cash/ kind as award instituted by Central/ State Government or award instituted by the Central Government approved body No limit — 10(18) Central or State Government employee Pension No limit Such employee is awarded ParamVir Chakra or MahaVir Chakra or Vir Chakra or such other notified gallantry award Any family member of an employee referred above Family Pension No limit —

Direct Taxes 1.22 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 10(19) Widow, children or nominated heirs of a member of the armed forces (including paramilitary forces) of the Union Family Pension No limit Where the death of such member of the armed forces has occurred in the course of operational duties, in such circumstances and subject to such conditions as may be prescribed 10 (23AAA) Any person on behalf of employees welfare fund Any income No limit • Fund is approved by CIT • The income is applied or accumulated for application towards objects of the fund only • The funds are invested as permitted under Section 11(5) • The approval shall have effect for 3 years at a time 10(23C) Certain Trusts, institutions receiving income on behalf of specified funds Any income No limit Up to 5 crore if received from university/ universities/ educational institutions referred to in subclause (iiiad) or hospital/ hospitals/ institution/ institutions referred to in clause (iiiae) The restrictions on cash payments as per 40A(3) and (3A) and consequences of nondeduction or non-payment of taxes after deduction as per section 40(a)(ia) shall apply to the specified institutions. Explanation to the third proviso to section 10(23C) clarifies that the corpus donations shall not form part of the income of such trusts / institutions. 10(23C)(iiiaa) Swachh Bharat Kosh set up by Central Government Any income No limit Same as above

Exempt income 1.23 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 10(23C)(iiiaaa) Clean Ganga Fund set up by Central Government Any income No limit Same as above 10(23C)(iiiaaaa) Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union territory Any income No limit The Fund should fulfil the conditions mentioned in section 80G(2)(a)(iiihf) 10 (23DA) Securitisation Trust Any income from the activity of securitisation No limit __ 10(23ED) Investor Protection Fund set up by depository Contribution received from the depository No limit Exemption not available in respect of amount of contribution not charged to tax during any previous year and shared with the depository. 10(23F) Approved Venture Capital Fund or Venture Capital Company Dividend and LTCG in respect of equity shares of a Venture Capital Undertaking No limit It shall not apply to investment made after 31st March 1999. 10(23FA) Same as per Section 10(23F) Dividend other than referred to in Section 115-O and LTCG in respect of equity shares of a venture capital undertaking No limit • Approved by Central Government • It shall not apply to investment made after 31st March 2000

Direct Taxes 1.24 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 10(23FB) Venture Capital Fund (VCF) or Venture Capital Company (VCC) set up to raise funds for Venture Capital Undertaking (VCU) Income from investment in VCU No limit • VCF/VCC granted registration under SEBI Act • VCF/VCC granted registration as category 1 Alternative Investment Fund with effect from A.Y. 2013-14 • VCF is operating under a registered trust deed or operating as venture capital scheme of UTI • VCF/VCC fulfils conditions specified by SEBI • VCU must be referred to in SEBI (VCF) Regulations, 1996 and notified by CBDT • VCU must be engaged in specified businesses or industries. This condition is no longer applicable w.e.f. A.Y. 2013-14 • VCU must be domestic company, whose shares are not listed on recognised stock exchange in India • Not applicable to income of VCC or VCF being an investment fund specified in Explanation 1(a) to Section 115UB from A.Y 2016-17 10 (23FBA) Investment Fund regulated under SEBI (AIF) Regulations Any income other than income chargeable under the head ‘Profits and gains of business or profession’ No limit — 10 (23FBB) Unit holder of an Investment Fund Income distributed by an Investment Fund which is taxed as business income in the hands of the Investment Fund No limit —

Exempt income 1.25 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks 10(23FC) Business Trust Interest received or receivable from Special Purpose Vehicle (SPV) or dividend received from specified domestic company No limit SPV is defined to mean an Indian company in which Business Trust holds controlling interest and any specific percentage of shareholding or interest as may be required 10 (23FCA) Income of a Real Estate Investment Trust Income from renting, leasing or letting out any real estate asset owned by such trust No limit Real Estate Asset will have same meaning as defined in Regulation 2(1)(zj) of SEBI (Real Estate Investment Trusts) Regulation, 2014 10(23FD) Unit holders of a Business Trust Any income distributed as referred to in section 115UA No limit Does not include- • proportion of income as referred to in sub-clause (a) of clause 10(23FC) • dividend received from SPV if such SPV has not exercised the option of section 115BAA of the Income-tax Act 10(23FE) Specified person Income in the nature of dividend, interest or longterm capital gains arising from an investment made by specified person in India or deemed income received from a business trust taxable under section 56(2)(xii) No limit “specified person” is defined to mean • A wholly owned subsidiary of the Abu Dhabi Investment Authority, which is a resident of the United Arab Emirates and makes investment, directly or indirectly, out of the fund owned by the Government of the United Arab Emirates • A sovereign wealth fund which is wholly owned and controlled by Government of a foreign country and meets other prescribed conditions. • A pension fund which is created or established under the law of a foreign country and is not liable to

Direct Taxes 1.26 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks tax in such foreign country. Such pension fund must be specified by the CG, by notification in the Official Gazette. In order to be eligible for exemption, the investment is required to be made on or after 1st April 2020 but on or before 31st March, 2024 and is required to be held for at least three years and investment should be in • a business trust referred to in clause 13A(i) of Section 2 or • a company carrying on the business of developing, or operating and maintaining, or developing, operating and maintaining any infrastructure facility as defined in the Explanation to section 80-IA(4)(i) or • a Category I or Category II Alternative Investment Fund regulated under the SEBI Regulations, 2012 having >=50% investment in one or more of the company or enterprise or in an Infrastructure Investment Trust referred to in sub clause (i) of clause 13A of Section 2 or. If investment < 100%- calculated proportionately to the investment made • a domestic company, set up and registered on or after the 1st April, 2021 having >= 75% investments in one or more of the companies or enterprises or entities referred to in item b above or

Exempt income 1.27 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks Lending <100%- calculated proportionately to the lending made • a NBFC registered as an Infrastructure Finance Company as referred to in notification number RBI/2009-10/316 issued by the Reserve Bank of India or in an Infrastructure Debt Fund, a non-banking finance company, as referred to in the Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank) Directions, 2011, issued by the Reserve Bank of India, having >= 90% lending to one or more of the companies or enterprises or entities referred to in item b above No exemption available for sovereign wealth fund or pension fund having loans or borrowings directly or indirectly for the purpose of making investment in India If specified person subsequently fails to satisfy the conditions on basis of which exemption was claimed in earlier years, the amount of exemption claimed in earlier years shall be deemed to be the income of the assessee of the year in which it fails to comply with the conditions. 10(23FF) Non-resident Capital gains arising or received on account of transfer of share of a company resident in India No limit • Transfer of shares of the Indian company by the resultant fund and such shares were transferred from the original fund to the resultant fund in relocation and

Direct Taxes 1.28 R7ima5ine Celebrating 1949 - 2023 BCAS REFERENCER 2023-24 61 Years of Continuous Publication Section Type of assessee Type of income Exempt amount Remarks • Capital gains on such shares were not chargeable to tax if the relocation had not taken place 10(32) Individual — Parent All income of a minor child which is clubbed Up to ` 1,500 per minor child Exemption will not be available if the assessee opts for new tax regime under section 115BAC 10(33) All assessees Capital Gains arising on transfer of Unit 64 on or after 1st April, 2002 No limit — 10(34) All assessees Dividends referred to in Section 115-O No limit (upto AY 2020-21) Does not apply to dividend chargeable to tax under Section 115BBDA Exemption shall not be available for any income by way of dividend received on or after 1st April, 2020 other than the dividend on which tax under Section 115-O and Section 115BBDA has already been paid 10(34A) All assessees Amount received on buy back of unlisted shares referred to in Section 115QA. Exemption extended to buyback of listed shares with effect from 5th July, 2019. No limit Exemption applies to buy-backs offered after 1st June, 2013 for unlisted shares. Exemption for listed shares applicable from 5 July 2019. 10(35) All assessees • Income in respect of Units of UTI • Income in respect of Units of UTI units or Mutual Fund specified under Section 10(23D) No limit (up to AY 2020-21) Does not apply to income arising from transfer of units Exemption shall not be available for any income in respect of units received on or after 1st April, 2020