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Income Tax

Complete guide to Income Tax Act, 2025 — all sections, rules, forms, notifications and circulars with landmark judgements, worked examples and quick analysis summary.

26 ChaptersUpdated for Budget 2025Written by CAs
01

Basis of Charge

Foundational concepts of income tax — charge of tax, residential status, scope of total income, and previous year vs assessment year.

02

Exempt Incomes — Sec 10

Comprehensive guide to incomes exempt under Section 10 — agricultural income, HRA, LTA, gratuity, and other key exemptions.

03

Salaries — Sec 15-17

Computation of salary income, allowances, perquisites, profits in lieu of salary, standard deduction, and TDS on salary.

04

House Property — Sec 22-27

Annual value computation, municipal taxes, standard deduction under Section 24(a), and interest deduction under Section 24(b).

05

Business & Profession — Sec 28-44

Allowable deductions, depreciation, presumptive taxation under 44AD/44ADA, disallowances under Section 40A, and deemed profits.

06

Capital Gains — Sec 45-55

Short-term vs long-term gains, indexation, exemptions under 54/54EC/54F, grandfathering for pre-2018 equity, and Budget 2025 rates.

07

Other Sources — Sec 56-59

Dividends, interest, gifts under Section 56(2)(x), clubbing provisions, and taxation of cryptocurrency/VDA under Section 115BBH.

08

Set Off & Carry Forward

Inter-source and inter-head set off of losses, carry forward rules, restrictions on set off, and order of priority.

09

Deductions — 80C to 80U

Section 80C, 80D, 80E, 80G, 80TTA/80TTB, and NPS deductions — eligibility, limits, and documentation required.

10

TDS, TCS & Advance Tax

TDS rates and sections, TCS provisions, TDS on salary (192), professional fees (194J), property (194IA), and advance tax computation.

11

Assessment & Scrutiny — Sec 143-148

Types of assessment (143(1), 143(3), 144), scrutiny selection criteria, reassessment under Section 148, and best judgement assessment.

12

Unexplained Income — Sec 68-69D

Cash credits, unexplained investments, unexplained money, and deemed income provisions under Sections 68 to 69D with tax implications.

13

Penalties & Prosecution — Sec 270A-276

Penalty for under-reporting and misreporting of income, prosecution provisions, compounding of offences, and immunity from penalties.

14

Appeals & Dispute Resolution

Appeal process before CIT(A), ITAT, High Court, and Supreme Court — DRC, VSVS scheme, and alternative dispute resolution mechanisms.

15

Search, Survey & Investigation — Sec 132-133A

Search and seizure under Section 132, survey under 133A, investigation procedures, and assessment of search cases under 153A/153C.

16

Returns & Filing — Sec 139-142

ITR forms (ITR-1 to ITR-7), filing due dates, belated/revised/updated returns, Form 26AS, AIS/TIS verification, and self-assessment tax.

17

Clubbing of Income — Sec 60-65

Transfer of income, revocable transfers, income of spouse, minor child clubbing, HUF provisions, and Section 64(1A) exceptions.

18

Tax Audit, MAT & AMT — Sec 44AB, 115JB, 115JC

Tax audit thresholds, Form 3CA/3CB/3CD, MAT for companies (115JB), AMT for non-corporates (115JC), and MAT credit mechanism.

19

International Taxation & DTAA — Sec 90, 91, 195

Double Taxation Avoidance Agreements, TDS on NR payments, Form 15CA/15CB, Tax Residency Certificate, and PE concepts.

20

Transfer Pricing — Sec 92-92F

Arm's Length Price methods, APA, documentation (Master File, Local File, CbCR), Form 3CEB, thin capitalisation, and secondary adjustments.

21

GAAR & Anti-Avoidance — Sec 95-102

General Anti-Avoidance Rules, impermissible avoidance arrangements, POEM, thin capitalisation (94B), and treaty override provisions.

22

Charitable Trusts — Sec 11-13

Trust registration (12A/12AB), 85% application rule, accumulation, permitted investments, Section 80G donations, and Form 10B audit.

23

Special Tax Rates & New Regime — Sec 115

New tax regime (115BAC), company rates (115BAA/BAB), crypto tax (115BBH), unexplained income (115BBE), rebate u/s 87A, and surcharge rates.

24

Cash Transaction Limits — Sec 269SS, 269T, 269ST

Cash loan/deposit restrictions, cash receipt limits (Rs. 2 lakh), Section 40A(3) disallowance, 194N TDS on withdrawal, and SFT reporting.

25

Recovery, Refunds & Rectification — Sec 154, 220-245

Rectification of mistakes, demand notices, garnishee orders, stay of recovery, refund claims, interest on refunds, and set-off of refunds.

26

CBDT Notifications, Circulars & Orders

Practical reference to CBDT notifications, circulars, and orders — ITR form updates, TDS rate changes, faceless assessment, monetary limits for appeals.

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