The Income Tax Act-1961

Refund of Tax under Income Tax Act, 1961 – Under Section 237 to 245

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Contents –


1. Introduction of Refund of Tax.
2. Section 237 – The reasons for the refund.
3. Section 238 – Claim for Refund.
4. Refund in the Case of Appeal – Section 240, 241, 242, 243, 244.
5. Section 245 – Set off of Refund Against Tax Remaining Payable.
6. section 245 C – Application for Settlement of Cases.
7. Section 245D (4A) – The Settlement Commission shall pass an order.

Income of other Persons Included in Assessee’s Total Income – Section 60 to 65

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Contents –

1. Transfer of income where there is no transfer of assets : Section 60.
2. Revocable transfer of assets : Section 61.
3. Transfer irrevocable for a specified period : Section 62.
4. Transfer and Revocable Transfer defined : Section 63.
5. Income of individual to include income of spouse, minor child : Section 64.
6. Liability of person in respect of income included in the income of another person : Section 65.

Introduction –

Under the Income Tax Act, generally the tax is charged on the persons income. In other words, the persons whose income is chargeable, the tax is collected from him. It means there is direct relation between Income Tax Department and the person whose income is chargeable for tax. But in the certain cases the income of the other person included in the assessee income. The provisions to the extent are in the income tax act.

Aggregation of Income and Set Off or Carry Forward of Loss – Section 66 to 80

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Aggregation of Income and Set Off or Carry Forward of Loss

Contents –

1. Aggregation of income : Section 66 to 69D.
2. Set off of loss from one source against income from another source under same head of income : Section 70.
3. Set off of loss from one head against income from another : Section 71.
4. Carry forward and set off : Section 72 to 74A.
5. Losses of firms : Section 75.
6. Carry forward and set off of losses of certain companies : Section 79.
7. Submission of return for losses : Section 80.

set off and carry forward of loss


Introduction –

The meaning of set off is as follows :
Set off means the adjustment of certain losses against the income under the other sources / heads is known as set off.

Carry forward :
The students from the commerce faculty are well know the meaning of carry forward in the subject of accountancy. The balance of any ledger account is carried forward to the next year. i.e. the subsequent year.

Here with reference to the provisions of the Income Tax Act, the carry forward means carrying forward certain losses for set off im subsequent assessment year. The loss occurred by the assessee is not automatically carry forward. It is very important to note that firstly, the assessee must declare such loss in the relevant year through the tax return, to be filled to the assessing officer and carry forward the loss to the next year as per the provisions of the Income Tax Act.
The assessee is required to file the return under Section 139 (3) before the due date, for availing carry forward any business loss or capital loss.
In this category there are two parts :
1) Aggregation of income section 66 to 69D
2) Set off and carry forward of losses Section 70 to 80