applied tax 6-32

Upload: mani-kandan

Post on 06-Apr-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/2/2019 Applied Tax 6-32

    1/27

    1Applied Direct Taxation

    SS

    TT

    UU

    DD

    YY

    NN

    OO

    TT

    EE

    --

    11

    TT

    YY

    PP

    EE

    SS

    OO

    FF

    TT

    AA

    XX

    EE

    SS

    T

    T

    h

    h

    i

    i

    s

    s

    S

    S

    t

    t

    u

    u

    d

    d

    y

    y

    N

    N

    o

    o

    t

    t

    e

    e

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    e

    e

    s

    s

    B

    B

    a

    a

    s

    s

    i

    i

    s

    s

    F

    F

    o

    o

    r

    r

    T

    T

    a

    a

    x

    x

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    D

    Di

    ir

    re

    ec

    ct

    t

    T

    Ta

    ax

    xe

    es

    s

    a

    an

    nd

    d

    I

    In

    nd

    di

    ir

    re

    ec

    ct

    t

    T

    Ta

    ax

    xe

    es

    s

    1

    1

    .

    .

    1

    1

    B

    B

    A

    A

    S

    S

    I

    I

    S

    S

    F

    F

    O

    O

    R

    R

    T

    T

    A

    A

    X

    X

    A

    A

    T

    T

    I

    I

    O

    O

    N

    N

    IInndd ii aa ii ss aa ssooccii aall ii sstt,, dd eemm ooccrraattii cc aanndd rreeppuu bbll ii cc ssttaattee.. CCoonnssttii ttuu ttii oonn ooff IInndd ii aa ii ss ssuu pp rreemm ee ll aaww ooff ll aanndd .. AA ll ll ootthheerr ll aaww ss,,

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    i

    i

    n

    n

    g

    g

    t

    t

    h

    h

    e

    e

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    -

    -

    t

    t

    a

    a

    x

    x

    A

    A

    c

    c

    t

    t

    ,

    ,

    a

    a

    r

    r

    e

    e

    s

    s

    u

    u

    b

    b

    o

    o

    r

    r

    d

    d

    i

    i

    n

    n

    a

    a

    t

    t

    e

    e

    t

    t

    o

    o

    t

    t

    h

    h

    e

    e

    C

    C

    o

    o

    n

    n

    s

    s

    t

    t

    i

    i

    t

    t

    u

    u

    t

    t

    i

    i

    o

    o

    n

    n

    o

    o

    f

    f

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    .

    .

    T

    T

    h

    h

    e

    e

    C

    C

    o

    o

    n

    n

    s

    s

    t

    t

    i

    i

    t

    t

    u

    u

    t

    t

    i

    i

    o

    o

    n

    n

    p

    p

    r

    r

    o

    o

    v

    v

    i

    i

    d

    d

    e

    e

    s

    s

    t

    t

    h

    h

    a

    a

    t

    t

    n

    n

    o

    o

    t

    t

    a

    a

    x

    x

    s

    s

    h

    h

    a

    a

    l

    l

    l

    l

    b

    b

    e

    e

    l

    l

    e

    e

    v

    v

    i

    i

    e

    e

    d

    d

    o

    o

    r

    r

    c

    c

    o

    o

    l

    l

    l

    l

    e

    e

    c

    c

    t

    t

    e

    e

    d

    d

    e

    e

    x

    x

    c

    c

    e

    e

    p

    p

    t

    t

    b

    b

    y

    y

    a

    a

    u

    u

    t

    t

    h

    h

    o

    o

    r

    r

    i

    i

    t

    t

    y

    y

    o

    o

    f

    f

    l

    l

    a

    a

    w

    w

    .

    .

    T

    T

    h

    h

    e

    e

    C

    C

    o

    o

    n

    n

    s

    s

    t

    t

    i

    i

    t

    t

    u

    u

    t

    t

    i

    i

    o

    o

    n

    n

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    e

    e

    s

    s

    t

    t

    h

    h

    r

    r

    e

    e

    e

    e

    l

    l

    i

    i

    s

    s

    t

    t

    s

    s

    i

    i

    n

    n

    t

    t

    h

    h

    e

    e

    S

    S

    e

    e

    v

    v

    e

    e

    n

    n

    t

    t

    h

    h

    S

    S

    c

    c

    h

    h

    e

    e

    d

    d

    u

    u

    l

    l

    e

    e

    p

    p

    r

    r

    o

    o

    v

    v

    i

    i

    d

    d

    i

    i

    n

    n

    g

    g

    a

    a

    u

    u

    t

    t

    h

    h

    o

    o

    r

    r

    i

    i

    t

    t

    y

    y

    t

    t

    o

    o

    t

    t

    h

    h

    e

    e

    C

    C

    e

    e

    n

    n

    t

    t

    r

    r

    a

    a

    l

    l

    G

    G

    o

    o

    v

    v

    e

    e

    r

    r

    n

    n

    m

    m

    e

    e

    n

    n

    t

    t

    a

    a

    n

    n

    d

    d

    t

    t

    h

    h

    e

    e

    s

    s

    t

    t

    a

    a

    t

    t

    e

    e

    g

    g

    o

    o

    v

    v

    e

    e

    r

    r

    n

    n

    m

    m

    e

    e

    n

    n

    t

    t

    s

    s

    t

    t

    o

    o

    l

    l

    e

    e

    v

    v

    y

    y

    a

    a

    n

    n

    d

    d

    c

    c

    o

    o

    l

    l

    l

    l

    e

    e

    c

    c

    t

    t

    t

    t

    a

    a

    x

    x

    e

    e

    s

    s

    o

    o

    n

    n

    s

    s

    u

    u

    b

    b

    j

    j

    e

    e

    c

    c

    t

    t

    s

    s

    s

    s

    t

    t

    a

    a

    t

    t

    e

    e

    d

    d

    i

    i

    n

    n

    t

    t

    h

    h

    e

    e

    l

    l

    i

    i

    s

    s

    t

    t

    s

    s

    .

    .

    P

    P

    o

    o

    w

    w

    e

    e

    r

    r

    s

    s

    o

    o

    f

    f

    C

    C

    e

    e

    n

    n

    t

    t

    r

    r

    a

    a

    l

    l

    o

    o

    r

    r

    S

    S

    t

    t

    a

    a

    t

    t

    e

    e

    G

    G

    o

    o

    v

    v

    e

    e

    r

    r

    n

    n

    m

    m

    e

    e

    n

    n

    t

    t

    t

    t

    o

    o

    l

    l

    e

    e

    v

    v

    y

    y

    t

    t

    a

    a

    x

    x

    A

    Ar

    rt

    ti

    ic

    cl

    le

    eE

    Em

    mp

    po

    ow

    we

    er

    rs

    sF

    Fo

    or

    r

    224466((11)) CC eenn ttrraall oorrSSttaatteeGG oovv eerrnn mm eenn tt LLeevv yy ooffvv aarrii oouu ssttaaxx eess..

    224466((11)) CC eenn ttrraall GG oovv eerrnnmm eenn tt LLeevv yy ttaaxxeessii nnLLii ssttIIoofftthheeSSeevv eerrnn tthhSScchheedd uu ll eeoofftthheeccoonnssttii ttuu ttii oonn ..

    224466((33)) SSttaatteeGG oovv eerrnnmm eenn tt LLeevv yy ttaaxxeessiinn LLii ssttIIII oofftthheeSSeevv eenn tthh SScchheedd uu ll eeoofftthheeCCoonnssttii ttuu ttii oonn..

    CC eenn ttrraall aann dd SSttaatteeGG oovv eerrnnmm eenn tt LLii ssttIIIIIIooffSSeevv eenntthhSScchheedd uu ll ee..

    L

    L

    i

    i

    s

    s

    t

    t

    I

    I

    :

    :

    U

    U

    n

    n

    i

    i

    o

    o

    n

    n

    L

    L

    i

    i

    s

    s

    t

    t

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    8

    8

    2

    2

    :

    :

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    T

    T

    a

    a

    x

    x

    o

    o

    t

    t

    h

    h

    e

    e

    r

    r

    t

    t

    h

    h

    a

    a

    n

    n

    T

    T

    a

    a

    x

    x

    o

    o

    n

    n

    A

    A

    g

    g

    r

    r

    i

    i

    c

    c

    u

    u

    l

    l

    t

    t

    u

    u

    r

    r

    a

    a

    l

    l

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    8

    8

    3

    3

    :

    :

    C

    C

    u

    u

    s

    s

    t

    t

    o

    o

    m

    m

    s

    s

    d

    d

    u

    u

    t

    t

    i

    i

    e

    e

    s

    s

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    i

    i

    n

    n

    g

    g

    e

    e

    x

    x

    p

    p

    o

    o

    r

    r

    t

    t

    d

    d

    u

    u

    t

    t

    i

    i

    e

    e

    s

    s

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    8

    8

    4

    4

    :

    :

    U

    U

    n

    n

    i

    i

    o

    o

    n

    n

    E

    E

    x

    x

    c

    c

    i

    i

    s

    s

    e

    e

    D

    D

    u

    u

    t

    t

    y

    y

    (

    (

    o

    o

    t

    t

    h

    h

    e

    e

    r

    r

    t

    t

    h

    h

    a

    a

    n

    n

    l

    l

    i

    i

    q

    q

    u

    u

    o

    o

    r

    r

    ,

    ,

    o

    o

    p

    p

    i

    i

    u

    u

    m

    m

    ,

    ,

    e

    e

    t

    t

    c

    c

    .

    .

    )

    )

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    8

    8

    5

    5

    :

    :

    C

    C

    o

    o

    r

    r

    p

    p

    o

    o

    r

    r

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    T

    T

    a

    a

    x

    x

    EEnnttrryy NN oo..9922AA :: TTaaxxeessoonnIInn tteerr--SSttaatteeSSaall eess((CCSSTT))

    EEnnttrryy NN oo..9922BB :: TTaaxx oonn IInn tteerr--SSttaatteeCCoonnssii ggnnmm eenn ttooffGG oooodd ss((nnoottyy eettccoonnssii dd eerreedd bbyy GG OOII ))

    EEnn ttrryy NN oo..9922CC :: TTaaxxeessoonnsseerrvv ii cceess

    EEnn ttrryy NN oo..9977 :: AA nnyy ootthheerrmm aatttteerrnnoottiinncclluu dd eedd iinn LLii ssttIIII oorrLLii ssttIIIIII

    [[LLeevv yy ooffSSeerrvv ii cceeTTaaxxtthhrroouu gghhFFiinnaanncceeAA cctt,,11999944]]

    L

    L

    i

    i

    s

    s

    t

    t

    I

    I

    I

    I

    :

    :

    S

    S

    t

    t

    a

    a

    t

    t

    e

    e

    L

    L

    i

    i

    s

    s

    t

    t

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    4

    4

    6

    6

    :

    :

    A

    A

    g

    g

    r

    r

    i

    i

    c

    c

    u

    u

    l

    l

    t

    t

    u

    u

    r

    r

    a

    a

    l

    l

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    T

    T

    a

    a

    x

    x

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    5

    5

    1

    1

    :

    :

    S

    S

    t

    t

    a

    a

    t

    t

    e

    e

    E

    E

    x

    x

    c

    c

    i

    i

    s

    s

    e

    e

    D

    D

    u

    u

    t

    t

    y

    y

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    N

    N

    o

    o

    .

    .

    5

    5

    2

    2

    :

    :

    T

    T

    a

    a

    x

    x

    o

    o

    n

    n

    E

    E

    n

    n

    t

    t

    r

    r

    y

    y

    o

    o

    f

    f

    G

    G

    o

    o

    o

    o

    d

    d

    s

    s

    i

    i

    n

    n

    t

    t

    o

    o

    l

    l

    o

    o

    c

    c

    a

    a

    l

    l

    a

    a

    r

    r

    e

    e

    a

    a

    f

    f

    o

    o

    r

    r

    c

    c

    o

    o

    n

    n

    s

    s

    u

    u

    m

    m

    p

    p

    t

    t

    i

    i

    o

    o

    n

    n

    o

    o

    r

    r

    u

    u

    s

    s

    e

    e

    o

    o

    r

    r

    s

    s

    a

    a

    l

    l

    e

    e

    (

    (

    c

    c

    a

    a

    l

    l

    l

    l

    e

    e

    d

    d

    o

    o

    c

    c

    t

    t

    r

    r

    o

    o

    i

    i

    )

    )

    E

    En

    nt

    tr

    ry

    y

    N

    No

    o.

    .

    5

    54

    4:

    :T

    Ta

    ax

    x

    o

    on

    n

    i

    in

    nt

    tr

    ra

    a

    S

    St

    ta

    at

    te

    e

    S

    Sa

    al

    le

    es

    s

    (

    (L

    Lo

    oc

    ca

    al

    l/

    /G

    Ge

    en

    ne

    er

    ra

    al

    l

    S

    Sa

    al

    le

    es

    s

    T

    Ta

    ax

    x)

    )

  • 8/2/2019 Applied Tax 6-32

    2/27

    2 Applied Direct Taxation

    TYPES Of TAXES

    LLii sstt IIIIII::SSttaatteeLLii sstt

    EEnnttrryy NN oo..1177AA :: FFoorreessttss

    EEnn ttrryy NN oo..2255 :: EEdd uu ccaattii oonn

    1

    1

    .

    .

    2

    2

    D

    D

    I

    I

    R

    R

    E

    E

    C

    C

    T

    T

    T

    T

    A

    A

    X

    X

    E

    E

    S

    S

    A

    A

    N

    N

    D

    D

    I

    I

    N

    N

    D

    D

    I

    I

    R

    R

    E

    E

    C

    C

    T

    T

    T

    T

    A

    A

    X

    X

    E

    E

    S

    STTaaxxDD ii rreeccttTTaaxx

    II nn dd ii rreeccttTTaaxx

    II nn ccoomm eeTTaaxx WWeeaall tthhTTaaxx CC eenn ttrraa ll

    EExx ccii sseeDD uu ttyy

    CC uu ssttoomm ss

    DD uu tt yy

    S

    S

    e

    e

    r

    r

    v

    v

    i

    i

    c

    c

    e

    e

    T

    T

    a

    a

    x

    x

    V

    V

    a

    a

    l

    l

    u

    u

    e

    e

    A

    A

    d

    d

    d

    d

    e

    e

    d

    d

    T

    T

    a

    a

    x

    x

    (

    (

    V

    V

    A

    A

    T

    T

    )

    )

    PPuu rrcchh aa sseeTTaaxx

    B

    B

    a

    a

    s

    s

    i

    i

    s

    s

    o

    o

    f

    f

    d

    d

    i

    i

    f

    f

    f

    f

    e

    e

    r

    r

    e

    e

    n

    n

    c

    c

    e

    e

    b

    b

    e

    e

    t

    t

    w

    w

    e

    e

    e

    e

    n

    n

    I

    I

    n

    n

    d

    d

    i

    i

    r

    r

    e

    e

    c

    c

    t

    t

    T

    T

    a

    a

    x

    x

    a

    a

    n

    n

    d

    d

    D

    D

    i

    i

    r

    r

    e

    e

    c

    c

    t

    t

    T

    T

    a

    a

    x

    x

    B

    Ba

    as

    si

    is

    s

    o

    of

    f

    d

    di

    if

    ff

    fe

    er

    re

    en

    nc

    ce

    eI

    In

    nd

    di

    ir

    re

    ec

    ct

    t

    T

    Ta

    ax

    xD

    Di

    ir

    re

    ec

    ct

    t

    T

    Ta

    ax

    x

    11.. TTaaxx aabbll eeEEvv eenn tt PPuu rrcchhaassee// SSaall ee// MMaannuu ffaaccttuu rreeooffggoooodd ss TTaaxxaabbll eeIInnccoomm ee// TTaaxx aabbll eeWWeeaall tthh oofftthheeaanndd pp rroovv ii ssii oonn ooffsseerrvv ii cceess AA sssseesssseeeess..

    22.. LLeevv yy &&CCooll ll eeccttii oonn LLeevv ii eedd &&ccooll ll eecctteedd ffrroomm tthheeccoonnssuu mm eerr LLeevv ii eedd aanndd ccooll ll eecctteedd ffrroomm tthheeAA sssseesssseeeebbuu ttpp aaii dd // dd eepp oossii tteedd ttootthheeEExx cchheeqquu eerr

    bbyy tthheeAA sssseesssseeee// DDeeaall eerr

    3

    3

    .

    .

    S

    S

    h

    h

    i

    i

    f

    f

    t

    t

    i

    i

    n

    n

    g

    g

    o

    o

    f

    f

    B

    B

    u

    u

    r

    r

    d

    d

    e

    e

    n

    n

    T

    T

    a

    a

    x

    x

    b

    b

    u

    u

    r

    r

    d

    d

    e

    e

    n

    n

    i

    i

    s

    s

    s

    s

    h

    h

    i

    i

    f

    f

    t

    t

    e

    e

    d

    d

    t

    t

    o

    o

    t

    t

    h

    h

    e

    e

    s

    s

    u

    u

    b

    b

    s

    s

    e

    e

    q

    q

    u

    u

    e

    e

    n

    n

    t

    t

    /

    /

    D

    D

    i

    i

    r

    r

    e

    e

    c

    c

    t

    t

    l

    l

    y

    y

    b

    b

    o

    o

    r

    r

    n

    n

    e

    e

    b

    b

    y

    y

    t

    t

    h

    h

    e

    e

    A

    A

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    e

    e

    e

    e

    .

    .

    u

    u

    l

    l

    t

    t

    i

    i

    m

    m

    a

    a

    t

    t

    e

    e

    u

    u

    s

    s

    e

    e

    r

    r

    H

    H

    e

    e

    n

    n

    c

    c

    e

    e

    ,

    ,

    c

    c

    a

    a

    n

    n

    n

    n

    o

    o

    t

    t

    b

    b

    e

    e

    s

    s

    h

    h

    i

    i

    f

    f

    t

    t

    e

    e

    d

    d

    .

    .

    4

    4

    .

    .

    C

    C

    o

    o

    l

    l

    l

    l

    e

    e

    c

    c

    t

    t

    e

    e

    d

    d

    A

    A

    t

    t

    t

    t

    h

    h

    e

    e

    t

    t

    i

    i

    m

    m

    e

    e

    o

    o

    f

    f

    s

    s

    a

    a

    l

    l

    e

    e

    o

    o

    f

    f

    p

    p

    u

    u

    r

    r

    c

    c

    h

    h

    a

    a

    s

    s

    e

    e

    s

    s

    o

    o

    r

    r

    a

    a

    f

    f

    t

    t

    e

    e

    r

    r

    t

    t

    h

    h

    e

    e

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    f

    f

    o

    o

    r

    r

    a

    a

    y

    y

    e

    e

    a

    a

    r

    r

    i

    i

    s

    s

    e

    e

    a

    a

    r

    r

    n

    n

    e

    e

    d

    d

    o

    o

    r

    r

    r

    r

    e

    e

    n

    n

    d

    d

    e

    e

    r

    r

    i

    i

    n

    n

    g

    g

    o

    o

    f

    f

    s

    s

    e

    e

    r

    r

    v

    v

    i

    i

    c

    c

    e

    e

    s

    s

    v

    v

    a

    a

    l

    l

    u

    u

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    o

    o

    f

    f

    a

    a

    s

    s

    s

    s

    e

    e

    t

    t

    s

    s

    i

    i

    s

    s

    d

    d

    e

    e

    t

    t

    e

    e

    r

    r

    m

    m

    i

    i

    n

    n

    e

    e

    d

    d

    o

    o

    n

    n

    t

    t

    h

    h

    e

    e

    v

    v

    a

    a

    l

    l

    u

    u

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    d

    d

    a

    a

    t

    t

    e

    e

    .

    .

  • 8/2/2019 Applied Tax 6-32

    3/27

    3Applied Direct Taxation

    SS

    TT

    UU

    DD

    YY

    NN

    OO

    TT

    EE

    --22

    TT

    HH

    EE

    SS

    OO

    UU

    RR

    CC

    EE

    OO

    FF

    IINN

    CC

    OO

    MM

    EE

    TT

    AA

    XX

    LL

    AA

    WW

    T

    T

    h

    h

    i

    i

    s

    s

    S

    S

    t

    t

    u

    u

    d

    d

    y

    y

    N

    N

    o

    o

    t

    t

    e

    e

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    e

    e

    s

    s

    B

    B

    a

    a

    s

    s

    i

    i

    c

    c

    C

    C

    o

    o

    n

    n

    c

    c

    e

    e

    p

    p

    t

    t

    s

    s

    R

    R

    a

    a

    t

    t

    e

    e

    s

    s

    o

    o

    f

    f

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    T

    T

    a

    a

    x

    x

    f

    f

    o

    o

    r

    r

    A

    A

    .

    .

    Y

    Y

    .

    .

    2

    2

    0

    0

    1

    1

    0

    0

    -

    -

    1

    1

    1

    1

    D

    D

    e

    e

    f

    f

    i

    i

    n

    n

    i

    i

    t

    t

    i

    i

    o

    o

    n

    n

    HHeeaadd ss ooff IInnccoommee

    2

    2

    .

    .

    1

    1

    B

    B

    A

    A

    S

    S

    I

    I

    C

    C

    C

    C

    O

    O

    N

    N

    C

    C

    E

    E

    P

    P

    T

    T

    S

    S

    TTHHEE EELLEEMMEENNTTSS // SSOOUURRCCEESS OOFF IINNCCOOMMEE TTAAXX LLAAWW

    1

    1

    .

    .

    T

    T

    h

    h

    e

    e

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    T

    T

    a

    a

    x

    x

    A

    A

    c

    c

    t

    t

    ,

    ,

    1

    1

    9

    9

    6

    6

    1

    1

    (

    (

    a

    a

    )

    )

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    t

    t

    a

    a

    x

    x

    i

    i

    n

    n

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    i

    i

    s

    s

    g

    g

    o

    o

    v

    v

    e

    e

    r

    r

    n

    n

    e

    e

    d

    d

    b

    b

    y

    y

    t

    t

    h

    h

    e

    e

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    T

    T

    a

    a

    x

    x

    A

    A

    c

    c

    t

    t

    ,

    ,

    1

    1

    9

    9

    6

    6

    1

    1

    (

    (

    b

    b

    )

    )

    I

    I

    t

    t

    c

    c

    a

    a

    m

    m

    e

    e

    i

    i

    n

    n

    t

    t

    o

    o

    f

    f

    o

    o

    r

    r

    c

    c

    e

    e

    w

    w

    .

    .

    e

    e

    .

    .

    f

    f

    .

    .

    1

    1

    .

    .

    4

    4

    .

    .

    1

    1

    9

    9

    6

    6

    2

    2

    (

    (

    c

    c

    )

    )

    T

    T

    h

    h

    e

    e

    A

    A

    c

    c

    t

    t

    c

    c

    o

    o

    n

    n

    t

    t

    a

    a

    i

    i

    n

    n

    s

    s

    2

    2

    9

    9

    8

    8

    s

    s

    e

    e

    c

    c

    t

    t

    i

    i

    o

    o

    n

    n

    s

    s

    a

    a

    n

    n

    d

    d

    X

    X

    I

    I

    V

    V

    S

    S

    c

    c

    h

    h

    e

    e

    d

    d

    u

    u

    l

    l

    e

    e

    s

    s

    (

    (

    d

    d

    )

    )

    T

    T

    h

    h

    e

    e

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    e

    e

    A

    A

    c

    c

    t

    t

    s

    s

    h

    h

    a

    a

    l

    l

    l

    l

    b

    b

    r

    r

    i

    i

    n

    n

    g

    g

    a

    a

    m

    m

    e

    e

    n

    n

    d

    d

    m

    m

    e

    e

    n

    n

    t

    t

    t

    t

    o

    o

    t

    t

    h

    h

    i

    i

    s

    s

    A

    A

    c

    c

    t

    t

    .

    .

    ((ee)) TThh eeLL aaww pp rroo vv ii dd eessffoorrdd eetteerrmm ii nnaa ttii oo nn ooffttaaxx aabbll eeii nn ccoomm ee,, ttaaxx ll ii aabbii ll ii ttyy aann dd pp rroo cceedd uu rreeffoorr aasssseessssmm eenn tt,, aapp pp eeaall ,,

    pp eennaall ttii eess aann dd pp rroosseeccuu ttii oonn ss..

    22.. FFii nnaannccee AAcctt

    ((aa)) FFii nnaann ccee MM ii nn ii sstteerr pp rreesseenn ttss tthh ii ss aass FFii nn aannccee BBii ll ll ii nn bbootthh tthh ee HH oouu sseess ooff PPaarrll ii aamm eenn tt..

    ((bb)) PPaarrtt AA ooff tthh ee BBuu dd gg eett ccoo nn ttaaii nn ss pp rroo pp oosseedd pp ooll ii ccii eess ooff tthh ee GG oovv eerrnn mm eenn tt ii nn ffii ssccaa ll aarreeaass..

    (

    (c

    c)

    )P

    Pa

    ar

    rt

    t

    B

    B

    c

    co

    on

    nt

    ta

    ai

    in

    ns

    s

    t

    th

    he

    e

    d

    de

    et

    ta

    ai

    il

    le

    ed

    d

    t

    ta

    ax

    x

    p

    pr

    ro

    op

    po

    os

    sa

    al

    ls

    s.

    .

    (

    (

    d

    d

    )

    )

    O

    O

    n

    n

    c

    c

    e

    e

    t

    t

    h

    h

    e

    e

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    e

    e

    B

    B

    i

    i

    l

    l

    l

    l

    i

    i

    s

    s

    a

    a

    p

    p

    p

    p

    r

    r

    o

    o

    v

    v

    e

    e

    d

    d

    b

    b

    y

    y

    t

    t

    h

    h

    e

    e

    P

    P

    a

    a

    r

    r

    l

    l

    i

    i

    a

    a

    m

    m

    e

    e

    n

    n

    t

    t

    a

    a

    n

    n

    d

    d

    g

    g

    e

    e

    t

    t

    s

    s

    t

    t

    h

    h

    e

    e

    a

    a

    s

    s

    s

    s

    e

    e

    n

    n

    t

    t

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    P

    P

    r

    r

    e

    e

    s

    s

    i

    i

    d

    d

    e

    e

    n

    n

    t

    t

    ,

    ,

    i

    i

    t

    t

    b

    b

    e

    e

    c

    c

    o

    o

    m

    m

    e

    e

    s

    s

    t

    t

    h

    h

    e

    e

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    e

    e

    A

    A

    c

    c

    t

    t

    .

    .

    (

    (

    e

    e

    )

    )

    T

    T

    h

    h

    e

    e

    r

    r

    a

    a

    t

    t

    e

    e

    o

    o

    f

    f

    t

    t

    a

    a

    x

    x

    a

    a

    t

    t

    w

    w

    h

    h

    i

    i

    c

    c

    h

    h

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    s

    s

    h

    h

    a

    a

    l

    l

    l

    l

    b

    b

    e

    e

    c

    c

    h

    h

    a

    a

    r

    r

    g

    g

    e

    e

    d

    d

    i

    i

    s

    s

    p

    p

    r

    r

    e

    e

    s

    s

    c

    c

    r

    r

    i

    i

    b

    b

    e

    e

    d

    d

    i

    i

    n

    n

    t

    t

    h

    h

    e

    e

    S

    S

    c

    c

    h

    h

    e

    e

    d

    d

    u

    u

    l

    l

    e

    e

    I

    I

    o

    o

    f

    f

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    e

    e

    A

    A

    c

    c

    t

    t

    .

    .

    (

    (

    f

    f

    )

    )

    T

    T

    h

    h

    e

    e

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    e

    e

    A

    A

    c

    c

    t

    t

    b

    b

    r

    r

    i

    i

    n

    n

    g

    g

    s

    s

    a

    a

    m

    m

    e

    e

    n

    n

    d

    d

    m

    m

    e

    e

    n

    n

    t

    t

    s

    s

    t

    t

    o

    o

    b

    b

    o

    o

    t

    t

    h

    h

    t

    t

    h

    h

    e

    e

    D

    D

    i

    i

    r

    r

    e

    e

    c

    c

    t

    t

    T

    T

    a

    a

    x

    x

    L

    L

    a

    a

    w

    w

    s

    s

    (

    (

    i

    i

    .

    .

    e

    e

    .

    .

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    T

    T

    a

    a

    x

    x

    ,

    ,

    W

    W

    e

    e

    a

    a

    l

    l

    t

    t

    h

    h

    T

    T

    a

    a

    x

    x

    e

    e

    t

    t

    c

    c

    .

    .

    )

    )

    a

    a

    n

    n

    d

    d

    I

    I

    n

    n

    d

    d

    i

    i

    r

    r

    e

    e

    c

    c

    t

    t

    T

    T

    a

    a

    x

    x

    L

    L

    a

    a

    w

    w

    s

    s

    (

    (

    i

    i

    .

    .

    e

    e

    .

    .

    l

    l

    a

    a

    w

    w

    r

    r

    e

    e

    l

    l

    a

    a

    t

    t

    i

    i

    n

    n

    g

    g

    t

    t

    o

    o

    C

    C

    e

    e

    n

    n

    t

    t

    r

    r

    a

    a

    l

    l

    E

    E

    x

    x

    c

    c

    i

    i

    s

    s

    e

    e

    ,

    ,

    C

    C

    u

    u

    s

    s

    t

    t

    o

    o

    m

    m

    s

    s

    D

    D

    u

    u

    t

    t

    y

    y

    ,

    ,

    S

    S

    e

    e

    r

    r

    v

    v

    i

    i

    c

    c

    e

    e

    T

    T

    a

    a

    x

    x

    e

    e

    t

    t

    c

    c

    .

    .

    )

    )

    33.. TThhee IInnccoommee TTaaxxRRuull eess,, 11996622

    ((aa)) TThh ee aadd mm ii nn ii ssttrraattii oonn ooff DD ii rreecctt TTaaxx eess ii ss vv eesstteedd ww ii tthh CC eenn ttrraall BBooaarrdd ooff DD ii rreecctt TTaaxx eess ((CC BBDD TT))..

    ((bb)) UU nn dd eerr SSeeccttii oonn 229955 ooff IITT AA cctt,, CC BBDD TT ii ss eemm pp ooww eerreedd ttoo ffrraamm ee rruu ll eess ffrroomm ttii mm ee ttoo ttii mm ee ttoo ccaa rrrryy oouu tt tthh eepp uu rrpp oossee aann dd pp rroopp eerr aadd mm ii nn ii ssttrraa ttii oonn oo ff tthh ee AA cctt..

    ((cc)) AA ll ll ffoorrmm ss,, pp rroocceedd uu rreess aanndd pp rrii nnccii pp ll eess ooff vv aall uu aattii oonn ooff pp eerrqquu ii ssii tteess pp rreessccrrii bbeedd uu nn dd eerr tthh ee AA cctt aarree pp rroovv ii dd eedd ii nn

    tthhee RR uu ll eess ffrraamm eedd bbyy CC BBDD TT..

    4

    4

    .

    .

    C

    C

    i

    i

    r

    r

    c

    c

    u

    u

    l

    l

    a

    a

    r

    r

    s

    s

    /

    /

    N

    N

    o

    o

    t

    t

    i

    i

    f

    f

    i

    i

    c

    c

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    s

    s

    f

    f

    r

    r

    o

    o

    m

    m

    C

    C

    B

    B

    D

    D

    T

    T

    (

    (

    a

    a

    )

    )

    I

    I

    n

    n

    e

    e

    x

    x

    e

    e

    r

    r

    c

    c

    i

    i

    s

    s

    e

    e

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    p

    p

    o

    o

    w

    w

    e

    e

    r

    r

    s

    s

    u

    u

    /

    /

    s

    s

    1

    1

    1

    1

    9

    9

    ,

    ,

    C

    C

    B

    B

    D

    D

    T

    T

    i

    i

    s

    s

    s

    s

    u

    u

    e

    e

    s

    s

    c

    c

    i

    i

    r

    r

    c

    c

    u

    u

    l

    l

    a

    a

    r

    r

    s

    s

    a

    a

    n

    n

    d

    d

    n

    n

    o

    o

    t

    t

    i

    i

    f

    f

    i

    i

    c

    c

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    s

    s

    f

    f

    r

    r

    o

    o

    m

    m

    t

    t

    i

    i

    m

    m

    e

    e

    t

    t

    o

    o

    t

    t

    i

    i

    m

    m

    e

    e

    .

    .

    (

    (

    b

    b

    )

    )

    T

    T

    h

    h

    e

    e

    s

    s

    e

    e

    c

    c

    i

    i

    r

    r

    c

    c

    u

    u

    l

    l

    a

    a

    r

    r

    s

    s

    c

    c

    l

    l

    a

    a

    r

    r

    i

    i

    f

    f

    y

    y

    d

    d

    o

    o

    u

    u

    b

    b

    t

    t

    s

    s

    r

    r

    e

    e

    g

    g

    a

    a

    r

    r

    d

    d

    i

    i

    n

    n

    g

    g

    t

    t

    h

    h

    e

    e

    s

    s

    c

    c

    o

    o

    p

    p

    e

    e

    a

    a

    n

    n

    d

    d

    m

    m

    e

    e

    a

    a

    n

    n

    i

    i

    n

    n

    g

    g

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    v

    v

    a

    a

    r

    r

    i

    i

    o

    o

    u

    u

    s

    s

    p

    p

    r

    r

    o

    o

    v

    v

    i

    i

    s

    s

    i

    i

    o

    o

    n

    n

    s

    s

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    A

    A

    c

    c

    t

    t

    .

    .

    (

    (

    c

    c

    )

    )

    T

    T

    h

    h

    e

    e

    s

    s

    e

    e

    c

    c

    i

    i

    r

    r

    c

    c

    u

    u

    l

    l

    a

    a

    r

    r

    s

    s

    a

    a

    c

    c

    t

    t

    a

    a

    s

    s

    g

    g

    u

    u

    i

    i

    d

    d

    a

    a

    n

    n

    c

    c

    e

    e

    f

    f

    o

    o

    r

    r

    o

    o

    f

    f

    f

    f

    i

    i

    c

    c

    e

    e

    r

    r

    s

    s

    a

    a

    n

    n

    d

    d

    a

    a

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    e

    e

    s

    s

    .

    .

    (

    (

    d

    d

    )

    )

    T

    T

    h

    h

    e

    e

    s

    s

    e

    e

    c

    c

    i

    i

    r

    r

    c

    c

    u

    u

    l

    l

    a

    a

    r

    r

    s

    s

    a

    a

    r

    r

    e

    e

    b

    b

    i

    i

    n

    n

    d

    d

    i

    i

    n

    n

    g

    g

    o

    o

    n

    n

    A

    A

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    i

    i

    n

    n

    g

    g

    O

    O

    f

    f

    f

    f

    i

    i

    c

    c

    e

    e

    r

    r

    s

    s

    b

    b

    u

    u

    t

    t

    n

    n

    o

    o

    t

    t

    o

    o

    n

    n

    a

    a

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    e

    e

    s

    s

    a

    a

    n

    n

    d

    d

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    s

    s

    .

    .

    (

    (e

    e)

    )T

    Th

    he

    e

    c

    ci

    ir

    rc

    cu

    ul

    la

    ar

    rs

    s

    i

    is

    ss

    su

    ue

    ed

    d

    b

    by

    y

    t

    th

    he

    e

    C

    CB

    BD

    DT

    T

    s

    sh

    ha

    al

    ll

    l

    n

    no

    ot

    t

    b

    be

    e

    i

    in

    n

    c

    co

    on

    nt

    tr

    ra

    ar

    ry

    y

    t

    to

    o

    t

    th

    he

    e

    p

    pr

    ro

    ov

    vi

    is

    si

    io

    on

    ns

    s

    o

    of

    f

    t

    th

    he

    e

    A

    Ac

    ct

    t.

    .

  • 8/2/2019 Applied Tax 6-32

    4/27

    4 Applied Direct Taxation

    THE SOURCE OF INCOME TAX LAW

    SSuubboorrdd ii nnaattee LLeeggii ssll aattii oonn

    TThh ee GG oovv eerrnnmm eenn tt eenn aaccttss tthh ee ll aaww ii nn tthh ee PPaarr ll ii aamm eenn tt,, tthheerree ee.. gg .. II nn ccoomm ee TTaaxx AA cctt,, CC eenn ttrraa ll EE xx ccii ssee AA cctt,, eettcc.. ww hh eerree ii ssaa nn eeeedd ffoorr dd eettaa ii ll eedd rruu ll eess aann dd rreegg uu ll aa ttii oonn ss,, tthh ee eenn aaccttmm eenn tt ii ss ttoo bbee dd oo nn ee bbyy eeii tthh eerr CC BBDD TT oo rr CC BBEE CC .. TThhee rruu ll eess aann dd

    rreegg uu ll aattii oonn sseenn aacctteedd bbyy CC BBDD TToorrCC BBEE CC ii .. ee.. II nn ccoomm eeTTaa xx RR uu ll eess,, CC eenn vv aattCC rreedd ii ttRR uu ll eess,, tthh eeNN oottii ffii ccaattii oonn ssaann dd CC ii rrccuu ll aarrss

    i

    i

    s

    s

    s

    s

    u

    u

    e

    e

    d

    d

    b

    b

    y

    y

    C

    C

    B

    B

    D

    D

    T

    T

    ,

    ,

    C

    C

    B

    B

    E

    E

    C

    C

    i

    i

    s

    s

    c

    c

    a

    a

    l

    l

    l

    l

    e

    e

    d

    d

    S

    S

    u

    u

    b

    b

    o

    o

    r

    r

    d

    d

    i

    i

    n

    n

    a

    a

    t

    t

    e

    e

    L

    L

    e

    e

    g

    g

    i

    i

    s

    s

    l

    l

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    .

    .

    5

    5

    .

    .

    S

    S

    u

    u

    p

    p

    r

    r

    e

    e

    m

    m

    e

    e

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    a

    a

    n

    n

    d

    d

    H

    H

    i

    i

    g

    g

    h

    h

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    D

    D

    e

    e

    c

    c

    i

    i

    s

    s

    i

    i

    o

    o

    n

    n

    s

    s

    (

    (

    a

    a

    )

    )

    T

    T

    h

    h

    e

    e

    S

    S

    u

    u

    p

    p

    r

    r

    e

    e

    m

    m

    e

    e

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    a

    a

    n

    n

    d

    d

    t

    t

    h

    h

    e

    e

    H

    H

    i

    i

    g

    g

    h

    h

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    c

    c

    a

    a

    n

    n

    g

    g

    i

    i

    v

    v

    e

    e

    j

    j

    u

    u

    d

    d

    g

    g

    m

    m

    e

    e

    n

    n

    t

    t

    o

    o

    n

    n

    l

    l

    y

    y

    o

    o

    n

    n

    t

    t

    h

    h

    e

    e

    q

    q

    u

    u

    e

    e

    s

    s

    t

    t

    i

    i

    o

    o

    n

    n

    o

    o

    f

    f

    l

    l

    a

    a

    w

    w

    .

    .

    (

    (

    b

    b

    )

    )

    T

    T

    h

    h

    e

    e

    L

    L

    a

    a

    w

    w

    l

    l

    a

    a

    i

    i

    d

    d

    d

    d

    o

    o

    w

    w

    n

    n

    b

    b

    y

    y

    t

    t

    h

    h

    e

    e

    S

    S

    u

    u

    p

    p

    r

    r

    e

    e

    m

    m

    e

    e

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    i

    i

    s

    s

    t

    t

    h

    h

    e

    e

    l

    l

    a

    a

    w

    w

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    l

    l

    a

    a

    n

    n

    d

    d

    .

    .

    (

    (

    c

    c

    )

    )

    T

    T

    h

    h

    e

    e

    d

    d

    e

    e

    c

    c

    i

    i

    s

    s

    i

    i

    o

    o

    n

    n

    o

    o

    f

    f

    H

    H

    i

    i

    g

    g

    h

    h

    C

    C

    o

    o

    u

    u

    r

    r

    t

    t

    w

    w

    i

    i

    l

    l

    l

    l

    a

    a

    p

    p

    p

    p

    l

    l

    y

    y

    i

    i

    n

    n

    t

    t

    h

    h

    e

    e

    r

    r

    e

    e

    s

    s

    p

    p

    e

    e

    c

    c

    t

    t

    i

    i

    v

    v

    e

    e

    S

    S

    t

    t

    a

    a

    t

    t

    e

    e

    s

    s

    ,

    ,

    w

    w

    i

    i

    t

    t

    h

    h

    i

    i

    n

    n

    i

    i

    t

    t

    s

    s

    j

    j

    u

    u

    r

    r

    i

    i

    s

    s

    d

    d

    i

    i

    c

    c

    t

    t

    i

    i

    o

    o

    n

    n

    .

    .

    DDEETTEERRMMIINNIINNGG TTHHEE RRAATTEESSOOFF TTAAXXUUNNDDEERR TTHHEE IINNCCOOMMEE TTAAXXAACCTT,, 11996611

    11.. IInn ccoomm ee TTaaxx sshh aall ll bbee cchh aarrgg eedd aatt tthh ee rraa tteess ffii xx eedd ffoorr tthh ee yy eeaarr bbyy tthh ee AA nn nn uu aall FFii nn aann ccee AA cctt..

    22.. TThhee FFii rrsstt SScchh eedd uu ll ee ttoo tthh ee FFii nn aannccee AA cctt pp rroovv ii dd eess tthhee ffooll ll ooww ii nn gg rraatteess ooff ttaaxx aattii oonn ..

    P

    Pa

    ar

    rt

    t

    I

    IT

    Th

    he

    e

    t

    ta

    ax

    x

    r

    ra

    at

    te

    es

    s

    a

    ap

    pp

    pl

    li

    ic

    ca

    ab

    bl

    le

    e

    t

    to

    o

    i

    in

    nc

    co

    om

    me

    e

    o

    of

    f

    v

    va

    ar

    ri

    io

    ou

    us

    s

    t

    ty

    yp

    pe

    es

    s

    o

    of

    f

    a

    as

    ss

    se

    es

    ss

    se

    ee

    es

    s

    f

    fo

    or

    r

    t

    th

    he

    e

    a

    as

    ss

    se

    es

    ss

    sm

    me

    en

    nt

    t

    y

    ye

    ea

    ar

    r

    P

    P

    a

    a

    r

    r

    t

    t

    I

    I

    I

    I

    R

    R

    a

    a

    t

    t

    e

    e

    s

    s

    o

    o

    f

    f

    T

    T

    D

    D

    S

    S

    f

    f

    o

    o

    r

    r

    t

    t

    h

    h

    e

    e

    c

    c

    u

    u

    r

    r

    r

    r

    e

    e

    n

    n

    t

    t

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    i

    i

    a

    a

    l

    l

    y

    y

    e

    e

    a

    a

    r

    r

    P

    P

    a

    a

    r

    r

    t

    t

    I

    I

    I

    I

    I

    I

    R

    R

    a

    a

    t

    t

    e

    e

    s

    s

    o

    o

    f

    f

    T

    T

    D

    D

    S

    S

    f

    f

    o

    o

    r

    r

    s

    s

    a

    a

    l

    l

    a

    a

    r

    r

    y

    y

    a

    a

    n

    n

    d

    d

    a

    a

    d

    d

    v

    v

    a

    a

    n

    n

    c

    c

    e

    e

    t

    t

    a

    a

    x

    x

    (

    (

    w

    w

    h

    h

    i

    i

    c

    c

    h

    h

    b

    b

    e

    e

    c

    c

    o

    o

    m

    m

    e

    e

    s

    s

    P

    P

    a

    a

    r

    r

    t

    t

    I

    I

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    n

    n

    e

    e

    x

    x

    t

    t

    a

    a

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    m

    m

    e

    e

    n

    n

    t

    t

    y

    y

    e

    e

    a

    a

    r

    r

    )

    )

    2

    2

    .

    .

    2

    2

    R

    R

    A

    A

    T

    T

    E

    E

    S

    S

    O

    O

    F

    F

    I

    I

    N

    N

    C

    C

    O

    O

    M

    M

    E

    E

    -

    -

    T

    T

    A

    A

    X

    X

    F

    F

    O

    O

    R

    R

    A

    A

    S

    S

    S

    S

    E

    E

    S

    S

    S

    S

    M

    M

    E

    E

    N

    N

    T

    T

    Y

    Y

    E

    E

    A

    A

    R

    R

    2

    2

    0

    0

    1

    1

    2

    2

    -

    -

    1

    1

    3

    3

    NN oorrmmaall RRaatteessooffIInnccoommeeTTaaxx

    II.. IInn tthh eeccaasseeooffeevv eerryy IInn dd ii vv ii dd uu aall oorrHH ii nndd uu uu nndd ii vv ii dd eedd ffaamm ii ll yy oorrAA OO PP// BBOO II((ootthheerrtthhaann aaccoo-- oopp eerraattii vv eessooccii eettyy ))ww hh eetthheerrii nn ccoorrpp oorraatteedd oorrnn oo tt,, oorreevv eerryy aa rrttii ffii ccii aall jjuu dd ii ccii aa ll pp eerrssoonn

    UU pp ttoo ``11,, 8800,, 000000 NN ii ll

    `

    `

    1

    1

    ,

    ,

    8

    8

    0

    0

    ,

    ,

    0

    0

    1

    1

    0

    0

    t

    t

    o

    o

    `

    `

    5

    5

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    1

    1

    0

    0

    %

    %

    `

    `

    5

    5

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    1

    1

    0

    0

    t

    t

    o

    o

    `

    `

    8

    8

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    2

    2

    0

    0

    %

    %

    A

    A

    b

    b

    o

    o

    v

    v

    e

    e

    `

    `

    8

    8

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    3

    3

    0

    0

    %

    %

    I

    I

    I

    I

    .

    .

    I

    I

    n

    n

    t

    t

    h

    h

    e

    e

    c

    c

    a

    a

    s

    s

    e

    e

    o

    o

    f

    f

    e

    e

    v

    v

    e

    e

    r

    r

    y

    y

    i

    i

    n

    n

    d

    d

    i

    i

    v

    v

    i

    i

    d

    d

    u

    u

    a

    a

    l

    l

    ,

    ,

    b

    b

    e

    e

    i

    i

    n

    n

    g

    g

    a

    a

    w

    w

    o

    o

    m

    m

    a

    a

    n

    n

    r

    r

    e

    e

    s

    s

    i

    i

    d

    d

    e

    e

    n

    n

    t

    t

    i

    i

    n

    n

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    ,

    ,

    a

    a

    n

    n

    d

    d

    b

    b

    e

    e

    l

    l

    o

    o

    w

    w

    t

    t

    h

    h

    e

    e

    a

    a

    g

    g

    e

    e

    o

    o

    f

    f

    s

    s

    i

    i

    x

    x

    t

    t

    y

    y

    y

    y

    e

    e

    a

    a

    r

    r

    s

    s

    a

    a

    t

    t

    a

    a

    n

    n

    y

    y

    t

    t

    i

    i

    m

    m

    e

    e

    d

    d

    u

    u

    r

    r

    i

    i

    n

    n

    g

    g

    t

    t

    h

    h

    e

    e

    p

    p

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    y

    y

    e

    e

    a

    a

    r

    r

    .

    .

    UU pp ttoo ` 11,, 9900,, 000000 NN ii ll

    `` 11,, 9900,, 001100ttoo `` 55,, 0000,, 000000 1100%%

    ` 55,, 0000,, 001100ttoo ` 88,, 0000,, 000000 2200%%

    AA bb oo vv ee `` 88,, 0000,, 000000 3300%%

    I

    I

    I

    I

    I

    I

    .

    .

    I

    I

    n

    n

    t

    t

    h

    h

    e

    e

    c

    c

    a

    a

    s

    s

    e

    e

    o

    o

    f

    f

    e

    e

    v

    v

    e

    e

    r

    r

    y

    y

    i

    i

    n

    n

    d

    d

    i

    i

    v

    v

    i

    i

    d

    d

    u

    u

    a

    a

    l

    l

    ,

    ,

    b

    b

    e

    e

    i

    i

    n

    n

    g

    g

    a

    a

    r

    r

    e

    e

    s

    s

    i

    i

    d

    d

    e

    e

    n

    n

    t

    t

    i

    i

    n

    n

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    ,

    ,

    w

    w

    h

    h

    o

    o

    i

    i

    s

    s

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    a

    a

    g

    g

    e

    e

    o

    o

    f

    f

    6

    6

    0

    0

    y

    y

    e

    e

    a

    a

    r

    r

    s

    s

    o

    o

    r

    r

    m

    m

    o

    o

    r

    r

    e

    e

    a

    a

    t

    t

    a

    a

    n

    n

    y

    y

    t

    t

    i

    i

    m

    m

    e

    e

    d

    d

    u

    u

    r

    r

    i

    i

    n

    n

    g

    g

    t

    t

    h

    h

    e

    e

    p

    p

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    y

    y

    e

    e

    a

    a

    r

    r

    .

    .

    [

    [

    S

    S

    e

    e

    n

    n

    i

    i

    o

    o

    r

    r

    c

    c

    i

    i

    t

    t

    i

    i

    z

    z

    e

    e

    n

    n

    ]

    ]

    U

    U

    p

    p

    t

    t

    o

    o

    `

    `

    2

    2

    ,

    ,

    5

    5

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    N

    N

    i

    i

    l

    l

    `

    `

    2

    2

    ,

    ,

    5

    5

    0

    0

    ,

    ,

    0

    0

    1

    1

    0

    0

    t

    t

    o

    o

    `

    `

    5

    5

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    1

    1

    0

    0

    %

    %

    `

    `

    5

    5

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    1

    1

    0

    0

    t

    t

    o

    o

    `

    `

    8

    8

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    2

    2

    0

    0

    %

    %

    A

    Ab

    bo

    ov

    ve

    e`

    `8

    8,

    ,0

    00

    0,

    ,0

    00

    00

    03

    30

    0%

    %

  • 8/2/2019 Applied Tax 6-32

    5/27

    5Applied Direct Taxation

    II VV .. II nn tthh eeccaa sseeooffeevv eerryy ii nndd ii vv ii dduuaall ,, bbeeii nn gg aa rreessii ddeennttii nnIInndd iiaa,, ww hh ooii ssoo fftthh ee aaggeeooff8800yyeeaarrssoorrmmoorree aatt aann yy ttii mm eedd uu rrii nn gg tthh eepp rreevv ii oo uu ssyy eeaarr .. [[VV eerryysseennii oorrccii ttii zz eenn]]

    UU pp ttoo `` 55,, 0000,, 000000 NN ii ll

    `

    `

    5

    5

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    1

    1

    0

    0

    t

    t

    o

    o

    `

    `

    8

    8

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    2

    2

    0

    0

    %

    %

    A

    A

    b

    b

    o

    o

    v

    v

    e

    e

    `

    `

    8

    8

    ,

    ,

    0

    0

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    3

    3

    0

    0

    %

    %

    N

    N

    o

    o

    t

    t

    e

    e

    :

    :

    N

    N

    o

    o

    s

    s

    u

    u

    r

    r

    c

    c

    h

    h

    a

    a

    r

    r

    g

    g

    e

    e

    i

    i

    s

    s

    p

    p

    a

    a

    y

    y

    a

    a

    b

    b

    l

    l

    e

    e

    b

    b

    y

    y

    t

    t

    h

    h

    e

    e

    a

    a

    b

    b

    o

    o

    v

    v

    e

    e

    a

    a

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    e

    e

    e

    e

    s

    s

    .

    .

    E

    E

    d

    d

    u

    u

    c

    c

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    C

    C

    e

    e

    s

    s

    s

    s

    @

    @

    2

    2

    %

    %

    ,

    ,

    a

    a

    n

    n

    d

    d

    S

    S

    e

    e

    c

    c

    o

    o

    n

    n

    d

    d

    a

    a

    r

    r

    y

    y

    a

    a

    n

    n

    d

    d

    H

    H

    i

    i

    g

    g

    h

    h

    e

    e

    r

    r

    E

    E

    d

    d

    u

    u

    c

    c

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    C

    C

    e

    e

    s

    s

    s

    s

    (

    (

    S

    S

    H

    H

    E

    E

    C

    C

    )

    )

    @

    @

    1

    1

    %

    %

    o

    o

    n

    n

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    t

    t

    a

    a

    x

    x

    s

    s

    h

    h

    a

    a

    l

    l

    l

    l

    b

    b

    e

    e

    c

    c

    h

    h

    a

    a

    r

    r

    g

    g

    e

    e

    a

    a

    b

    b

    l

    l

    e

    e

    2

    2

    .

    .

    2

    2

    .

    .

    2

    2

    O

    O

    t

    t

    h

    h

    e

    e

    r

    r

    A

    A

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    e

    e

    e

    e

    s

    s

    :

    :

    AAsssseesssseeee RRaatteeooffTTaaxx SSuurrcchhaarrggee

    FFoorr FFiirrmm ss ((iinncclluu dd iinngg lliimm ii tteedd ll ii aabbiill ii ttyy TToottaall IInnccoomm ee 3300%% ++ EECC SSuu rrcchhaarrggee NN IILL

    pp aarrttnneerrsshhii pp )) @@ 22%% ++ SSHH EE CC @@ 11%% ..

    DD oomm eessttii ccCC oomm pp aann ii eess TToottaall IInnccoomm ee 3300%% ++ EECC SSuu rrcchhaarrgg ee @@ 55%% ii ff tthhee ttoottaall

    @@ 22%% ++ SSHH EE CC @@ 11%% .. ii nnccoomm eeeexx cceeeedd ss ` 11 ccrroorree

    F

    F

    o

    o

    r

    r

    e

    e

    i

    i

    g

    g

    n

    n

    C

    C

    o

    o

    m

    m

    p

    p

    a

    a

    n

    n

    i

    i

    e

    e

    s

    s

    T

    T

    o

    o

    t

    t

    a

    a

    l

    l

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    x

    x

    4

    4

    0

    0

    %

    %

    +

    +

    E

    E

    C

    C

    S

    S

    u

    u

    r

    r

    c

    c

    h

    h

    a

    a

    r

    r

    g

    g

    e

    e

    @

    @

    2

    2

    %

    %

    i

    i

    f

    f

    t

    t

    h

    h

    e

    e

    t

    t

    o

    o

    t

    t

    a

    a

    l

    l

    O

    O

    t

    t

    h

    h

    e

    e

    r

    r

    I

    I

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    @

    @

    2

    2

    %

    %

    +

    +

    S

    S

    H

    H

    E

    E

    C

    C

    @

    @

    1

    1

    %

    %

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    e

    e

    x

    x

    c

    c

    e

    e

    e

    e

    d

    d

    s

    s

    `

    `

    1

    1

    c

    c

    r

    r

    o

    o

    r

    r

    e

    e

    R

    R

    o

    o

    y

    y

    a

    a

    l

    l

    t

    t

    y

    y

    r

    r

    e

    e

    c

    c

    e

    e

    i

    i

    v

    v

    e

    e

    d

    d

    f

    f

    r

    r

    o

    o

    m

    m

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    n

    n

    G

    G

    o

    o

    v

    v

    e

    e

    r

    r

    n

    n

    m

    m

    e

    e

    n

    n

    t

    t

    o

    o

    r

    r

    a

    a

    n

    n

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    n

    n

    c

    c

    o

    o

    n

    n

    c

    c

    e

    e

    r

    r

    n

    n

    i

    i

    n

    n

    p

    p

    u

    u

    r

    r

    s

    s

    u

    u

    a

    a

    n

    n

    c

    c

    e

    e

    o

    o

    f

    f

    a

    a

    n

    n

    a

    a

    g

    g

    r

    r

    e

    e

    e

    e

    m

    m

    e

    e

    n

    n

    t

    t

    m

    m

    a

    a

    d

    d

    e

    e

    b

    b

    y

    y

    i

    i

    t

    t

    w

    w

    i

    i

    t

    t

    h

    h

    t

    t

    h

    h

    e

    e

    I

    I

    n

    n

    d

    d

    i

    i

    a

    a

    n

    n

    c

    c

    o

    o

    n

    n

    c

    c

    e

    e

    r

    r

    n

    n

    a

    a

    f

    f

    t

    t

    e

    e

    r

    r

    M

    M

    a

    a

    r

    r

    c

    c

    h

    h

    3

    3

    1

    1

    ,

    ,

    1

    1

    9

    9

    6

    6

    1

    1

    ,

    ,

    b

    b

    u

    u

    t

    t

    b

    b

    e

    e

    f

    f

    o

    o

    r

    r

    e

    e

    A

    A

    p

    p

    r

    r

    i

    i

    l

    l

    1

    1

    ,

    ,

    1

    1

    9

    9

    7

    7

    6

    6

    ,

    ,

    o

    o

    r

    r

    f

    f

    e

    e

    e

    e

    s

    s

    f

    f

    o

    o

    r

    r

    r

    r

    e

    e

    n

    n

    d

    d

    e

    e

    r

    r

    i

    i

    n

    n

    g

    g

    t

    t

    e

    e

    c

    c

    h

    h

    n

    n

    i

    i

    c

    c

    a

    a

    l

    l

    s

    s

    e

    e

    r

    r

    v

    v

    i

    i

    c

    c

    e

    e

    s

    s

    i

    i

    n

    n

    p

    pu

    ur

    rs

    su

    ua

    an

    nc

    ce

    e

    o

    of

    f

    a

    an

    n

    a

    ag

    gr

    re

    ee

    em

    me

    en

    nt

    t

    m

    ma

    ad

    de

    e

    b

    by

    y

    i

    it

    t

    a

    af

    ft

    te

    er

    rFFeebbrruu aarryy 2299,, 11996644 aanndd ww hh eerree ssuu cchh aagg rreeeemm eenn tthh aa ss,, ii nn eeii tthh eerr ccaa ss ee bb eeeenn aapp pp rroo vv eedd bb yy tthh ee

    CC eenn ttrraall GG oovv eerrnnmm eenn tt

    FFoorrLL ooccaall AA uu tthhoorrii ttii eess TToottaall IInnccoomm ee 3300%% ++ EECC ((SSuurrcchhaarrggee iiss nnoott aappppll ii ccaabbll ee))@@ 22%% ++ SSHH EE CC @@ 11%% .. NN ii ll

    F

    Fo

    or

    r

    C

    Co

    o-

    -o

    op

    pe

    er

    ra

    at

    ti

    iv

    ve

    eF

    Fo

    or

    r

    F

    Fi

    ir

    rs

    st

    t

    `

    1

    10

    0,

    ,0

    00

    00

    0

    @

    @

    1

    10

    0%

    %

    S

    S

    o

    o

    c

    c

    i

    i

    e

    e

    t

    t

    i

    i

    e

    e

    s

    s

    F

    F

    o

    o

    r

    r

    N

    N

    e

    e

    x

    x

    t

    t

    `

    `

    1

    1

    0

    0

    ,

    ,

    0

    0

    0

    0

    0

    0

    @

    @

    2

    2

    0

    0

    %

    %

    F

    F

    o

    o

    r

    r

    t

    t

    h

    h

    e

    e

    B

    B

    a

    a

    l

    l

    a

    a

    n

    n

    c

    c

    e

    e

    @

    @

    3

    3

    0

    0

    %

    %

    E

    E

    C

    C

    @

    @

    2

    2

    %

    %

    a

    a

    n

    n

    d

    d

    S

    S

    u

    u

    r

    r

    c

    c

    h

    h

    a

    a

    r

    r

    g

    g

    e

    e

    i

    i

    s

    s

    n

    n

    o

    o

    t

    t

    a

    a

    p

    p

    p

    p

    l

    l

    i

    i

    c

    c

    a

    a

    b

    b

    l

    l

    e

    e

    .

    .

    S

    S

    H

    H

    E

    E

    C

    C

    @

    @

    1

    1

    %

    %

    a

    a

    r

    r

    e

    e

    a

    a

    p

    p

    p

    p

    l

    l

    i

    i

    c

    c

    a

    a

    b

    b

    l

    l

    e

    e

    .

    .

    N

    N

    i

    i

    l

    l

    M

    M

    A

    A

    T

    T

    =

    =

    M

    M

    i

    i

    n

    n

    i

    i

    m

    m

    u

    u

    m

    m

    A

    A

    l

    l

    t

    t

    e

    e

    r

    r

    n

    n

    a

    a

    t

    t

    e

    e

    T

    T

    a

    a

    x

    x

    1

    1

    8

    8

    .

    .

    5

    5

    %

    %

    o

    o

    f

    f

    B

    B

    o

    o

    o

    o

    k

    k

    P

    P

    r

    r

    o

    o

    f

    f

    i

    i

    t

    t

    +

    +

    E

    E

    C

    C

    S

    S

    u

    u

    r

    r

    c

    c

    h

    h

    a

    a

    r

    r

    g

    g

    e

    e

    i

    i

    f

    f

    B

    B

    o

    o

    o

    o

    k

    k

    P

    P

    r

    r

    o

    o

    f

    f

    i

    i

    t

    t

    s

    s

    2

    2%

    %+

    +

    S

    SH

    HE

    EC

    C

    1

    1%

    %e

    ex

    xc

    ce

    ee

    ed

    d`

    1

    1

    c

    cr

    ro

    or

    re

    e.

    .

    2

    2

    .

    .

    3

    3

    D

    D

    E

    E

    F

    F

    I

    I

    N

    N

    I

    I

    T

    T

    I

    I

    O

    O

    N

    N

    AAsssseesssseeeemmeeaannss:: [[SSeeccttii oonn 22((77))]]

    AA nnyy pp eerrssoonn ww hhoo ii ss ll ii aa bbll ee ttoo pp aa yy aann yy ttaa xx oorr aann yy oo tthheerr ssuu mm uu nn dd eerr tthh ee II nn ccoomm ee TTaaxx AA cctt,, 11996611,, aann dd

    A

    A

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    e

    e

    e

    e

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    e

    e

    s

    s

    (

    (

    a

    a

    )

    )

    E

    E

    v

    v

    e

    e

    r

    r

    y

    y

    p

    p

    e

    e

    r

    r

    s

    s

    o

    o

    n

    n

    i

    i

    n

    n

    r

    r

    e

    e

    s

    s

    p

    p

    e

    e

    c

    c

    t

    t

    o

    o

    f

    f

    w

    w

    h

    h

    o

    o

    m

    m

    a

    a

    n

    n

    y

    y

    p

    p

    r

    r

    o

    o

    c

    c

    e

    e

    e

    e

    d

    d

    i

    i

    n

    n

    g

    g

    s

    s

    h

    h

    a

    a

    s

    s

    b

    b

    e

    e

    e

    e

    n

    n

    t

    t

    a

    a

    k

    k

    e

    e

    n

    n

    f

    f

    o

    o

    r

    r

    t

    t

    h

    h

    e

    e

    a

    a

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    m

    m

    e

    e

    n

    n

    t

    t

    o

    o

    f

    f

    H

    H

    i

    i

    s

    s

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    o

    o

    r

    r

    F

    F

    r

    r

    i

    i

    n

    n

    g

    g

    e

    e

    B

    B

    e

    e

    n

    n

    e

    e

    f

    f

    i

    i

    t

    t

    s

    s

    o

    o

    r

    r

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    o

    o

    f

    f

    a

    a

    n

    n

    y

    y

    o

    o

    t

    t

    h

    h

    e

    e

    r

    r

    p

    p

    e

    e

    r

    r

    s

    s

    o

    o

    n

    n

    .

    .

    L

    L

    o

    o

    s

    s

    s

    s

    s

    s

    u

    u

    s

    s

    t

    t

    a

    a

    i

    i

    n

    n

    e

    e

    d

    d

    b

    b

    y

    y

    h

    h

    i

    i

    m

    m

    o

    o

    r

    r

    o

    o

    t

    t

    h

    h

    e

    e

    r

    r

    p

    p

    e

    e

    r

    r

    s

    s

    o

    o

    n

    n

    .

    .

    R

    R

    e

    e

    f

    f

    u

    u

    n

    n

    d

    d

    d

    d

    u

    u

    e

    e

    t

    t

    o

    o

    h

    h

    i

    i

    m

    m

    o

    o

    r

    r

    s

    s

    u

    u

    c

    c

    h

    h

    o

    o

    t

    t

    h

    h

    e

    e

    r

    r

    p

    p

    e

    e

    r

    r

    s

    s

    o

    o

    n

    n

    .

    .

    (

    (b

    b)

    )E

    Ev

    ve

    er

    ry

    y

    p

    pe

    er

    rs

    so

    on

    n

    w

    wh

    ho

    o

    i

    is

    s

    d

    de

    ee

    em

    me

    ed

    d

    t

    to

    o

    b

    be

    e

    a

    an

    n

    a

    as

    ss

    se

    es

    ss

    se

    ee

    e

    u

    un

    nd

    de

    er

    r

    t

    th

    he

    e

    A

    Ac

    ct

    t.

    .

    ((cc)) EE vv eerryy pp eerrssoonn ww hh oo ii ss dd eeeemmeedd ttoo bbeeaannaasssseesssseeeeii nnddeeffaauull tt uu nn dd eerr tthh ee AA cctt..

  • 8/2/2019 Applied Tax 6-32

    6/27

    6 Applied Direct Taxation

    THE SOURCE OF INCOME TAX LAW

    AAsssseessssmmeenntt YYeeaarr [[SSeeccttii oonn 22 ((99))]]

    11.. AA sssseessssmm eenn tt YYeeaa rr mm eeaann ss tthh ee ppeerrii oodd ooffttww eell vv eemmoonntthhssccoommmmeennccii nngg oonn tthhee 11ssttdd aayy ooffAA pp rrii ll eevv eerryyyyeeaarr..22.. TThhee yy eeaarr ffoorr ww hh ii cchh ttaaxx ii ss pp aaii dd ii ss ccaall ll eedd AA sssseessssmm eenn tt YYeeaarr..

    TThhee pp rreesseenn tt AA sssseessssmm eenn tt YYeeaa rr ii ss 22001122-- 1133 rreell aa ttii nn gg ttoo pp rreevv ii oo uu ss yy eeaa rr 22001100-- 1111..

    P

    P

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    Y

    Y

    e

    e

    a

    a

    r

    r

    [

    [

    S

    S

    e

    e

    c

    c

    t

    t

    i

    i

    o

    o

    n

    n

    3

    3

    ]

    ]

    1

    1

    .

    .

    P

    P

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    Y

    Y

    e

    e

    a

    a

    r

    r

    m

    m

    e

    e

    a

    a

    n

    n

    s

    s

    F

    F

    i

    i

    n

    n

    a

    a

    n

    n

    c

    c

    i

    i

    a

    a

    l

    l

    Y

    Y

    e

    e

    a

    a

    r

    r

    i

    i

    m

    m

    m

    m

    e

    e

    d

    d

    i

    i

    a

    a

    t

    t

    e

    e

    l

    l

    y

    y

    p

    p

    r

    r

    e

    e

    c

    c

    e

    e

    d

    d

    i

    i

    n

    n

    g

    g

    t

    t

    h

    h

    e

    e

    A

    A

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    m

    m

    e

    e

    n

    n

    t

    t

    Y

    Y

    e

    e

    a

    a

    r

    r

    .

    .

    2

    2

    .

    .

    T

    T

    h

    h

    e

    e

    y

    y

    e

    e

    a

    a

    r

    r

    i

    i

    n

    n

    r

    r

    e

    e

    s

    s

    p

    p

    e

    e

    c

    c

    t

    t

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    i

    i

    n

    n

    c

    c

    o

    o

    m

    m

    e

    e

    o

    o

    f

    f

    w

    w

    h

    h

    i

    i

    c

    c

    h

    h

    t

    t

    a

    a

    x

    x

    i

    i

    s

    s

    l

    l

    e

    e

    v

    v

    i

    i

    e

    e

    d

    d

    i

    i

    s

    s

    c

    c

    a

    a

    l

    l

    l

    l

    e

    e

    d

    d

    P

    P

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    Y

    Y

    e

    e

    a

    a

    r

    r

    .

    .

    T

    T

    h

    h

    e

    e

    p

    p

    r

    r

    e

    e

    s

    s

    e

    e

    n

    n

    t

    t

    p

    p

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    y

    y

    e

    e

    a

    a

    r

    r

    2

    2

    0

    0

    1

    1

    1

    1

    -

    -

    1

    1

    2

    2

    a

    a

    n

    n

    d

    d

    i

    i

    t

    t

    s

    s

    A

    A

    s

    s

    s

    s

    e

    e

    s

    s

    s

    s

    m

    m

    e

    e

    n

    n

    t

    t

    Y

    Y

    e

    e

    a

    a

    r

    r

    i

    i

    s

    s

    2

    2

    0

    0

    1

    1

    2

    2

    -

    -

    1

    1

    3

    3

    .

    .

    N

    N

    o

    o

    t

    t

    e

    e

    :

    :

    P

    P

    r

    r

    e

    e

    v

    v

    i

    i

    o

    o

    u

    u

    s

    s

    Y

    Y

    e

    e

    a

    a

    r

    r

    f

    f

    o

    o

    r

    r

    N

    N

    e

    e

    w

    w

    l

    l

    y

    y

    e

    e

    s

    s

    t

    t

    a

    a

    b

    b

    l

    l

    i

    i

    s

    s

    h

    h

    e

    e

    d

    d

    b

    b

    u

    u

    s

    s

    i

    i

    n

    n

    e

    e

    s

    s

    s

    s

    F

    F

    r

    r

    o

    o

    m

    m

    t

    t

    h

    h

    e

    e

    d

    d

    a

    a

    t

    t

    e

    e

    o

    o

    f

    f

    s

    s

    e

    e

    t

    t

    t

    t

    i

    i

    n

    n

    g

    g

    u

    u

    p

    p

    o

    o

    f

    f

    t

    t

    h

    h

    e

    e

    b

    b

    u

    u

    s

    s

    i

    i

    n

    n

    e

    e

    s

    s

    s

    s

    t

    t

    o

    o

    t

    t

    h

    h

    e

    e

    e

    e

    n

    n

    d

    d

    o

    o

    f

    f

    t

    th

    he

    e

    F

    Fi

    in

    na

    an

    nc

    ci

    ia

    al

    l

    y

    ye

    ea

    ar

    r

    i

    in

    n

    w

    wh

    hi

    ic

    ch

    h

    b

    bu

    us

    si

    in

    ne

    es

    ss

    s

    w

    wa

    as

    s

    s

    se

    et

    t

    u

    up

    p.

    .

    EExxaammppll ee :: XX LLttdd .. SSttaarrtteedd bbuussii nneessss oonn 11..1111..1111.. SSoo ffoorr XX LLttdd .. PPrreevv ii oouuss yyeeaarr ww ii ll ll bbee ccoonnssii dd eerreedd aass 11..1111..1111 ttoo3311..33..1122..

    IInnccoommee [[SSeeccttii oonn 22((2244))]] ii nnccll uuddeess::

    11.. PPrrooffii ttss oo rr gg aa ii nn ss oo ff bbuu ssii nn eessss oo rr pp rrooffeessssii oonn ..

    22.. DD ii vv ii dd eenn dd ..

    3

    3

    .

    .

    V

    V

    o

    o

    l

    l

    u

    u

    n

    n

    t

    t

    a

    a

    r

    r

    y

    y

    C

    C

    o

    o

    n

    n

    t

    t

    r

    r

    i

    i

    b

    b

    u

    u

    t

    t

    i

    i

    o

    o

    n

    n

    r

    r

    e

    e

    c

    c

    e

    e

    i

    i

    v

    v

    e

    e

    d

    d

    b

    b

    y

    y

    a

    a

    C

    C

    h

    h

    a

    a

    r

    r

    i

    i

    t

    t

    a

    a

    b

    b

    l

    l

    e

    e

    /

    /

    R

    R

    e

    e

    l

    l

    i

    i

    g

    g

    i

    i

    o

    o

    u

    u

    s

    s

    T

    T

    r

    r

    u

    u

    s

    s

    t

    t

    o

    o

    r

    r

    U

    U

    n

    n

    i

    i

    v

    v

    e

    e

    r

    r

    s

    s

    i

    i

    t

    t

    y

    y

    /

    /

    E

    E

    d

    d

    u

    u

    c

    c

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    I

    I

    n

    n

    s

    s

    t

    t

    i

    i

    t

    t

    u

    u

    t

    t

    i

    i

    o

    o

    n

    n

    o

    o

    r

    r

    H

    H

    o

    o

    s

    s

    p

    p

    i

    i

    t

    t

    a

    a

    l

    l

    4

    4

    .

    .

    V

    V

    a

    a

    l

    l

    u

    u

    e

    e

    o

    o

    f

    f

    p

    p

    e

    e

    r

    r

    q

    q

    u

    u

    i

    i

    s

    s

    i

    i

    t

    t

    e

    e

    o

    o

    r

    r

    p

    p

    r

    r

    o

    o

    f

    f

    i

    i

    t

    t

    i

    i

    n

    n

    l

    l

    i

    i

    e

    e

    u

    u

    o

    o

    f

    f

    s

    s

    a

    a

    l

    l

    a

    a

    r

    r

    y

    y

    t

    t

    a

    a

    x

    x

    a

    a

    b

    b

    l

    l

    e

    e

    u

    u

    /

    /

    s

    s

    1

    1

    7

    7

    a

    a

    n

    n

    d

    d

    s

    s

    p

    p

    e

    e

    c

    c

    i

    i

    a

    a

    l

    l

    a

    a

    l

    l

    l

    l

    o

    o

    w

    w

    a

    a

    n

    n

    c

    c

    e

    e

    o

    o

    r

    r

    b

    b

    e

    e

    n

    n

    e

    e

    f

    f

    i

    i

    t

    t

    s

    s

    p

    p

    e

    e

    c

    c

    i

    i

    f

    f

    i

    i

    c

    c

    a

    a

    l

    l

    l

    l

    y

    y

    g

    g

    r

    r

    a

    a

    n

    n

    t

    t

    e

    e

    d

    d

    e

    e

    i

    i

    t

    t

    h

    h

    e

    e

    r

    r

    t

    t

    o

    o

    m

    m

    e

    e

    e

    e

    t

    t

    p

    p

    e

    e

    r

    r

    s

    s

    o

    o

    n

    n

    a

    a

    l

    l

    e

    e

    x

    x

    p

    p

    e

    e

    n

    n

    s

    s

    e

    e

    s

    s

    o

    o

    r

    r

    f

    f

    o

    o

    r

    r

    p

    p

    e

    e

    r

    r

    f

    f

    o

    o

    r

    r

    m

    m

    a

    a

    n

    n

    c

    c

    e

    e

    o

    o

    f

    f

    d

    d

    u

    u

    t

    t

    i

    i

    e

    e

    s

    s

    o

    o

    f

    f

    a

    a

    n

    n

    o

    o

    f

    f

    f

    f

    i

    i

    c

    c

    e

    e

    o

    o

    r

    r

    a

    a

    n

    n

    e

    e

    m

    m

    p

    p

    l

    l

    o

    o

    y

    y

    m

    m

    e

    e

    n

    n

    t

    t

    o

    o

    f

    f

    p

    p

    r

    r

    o

    o

    f

    f

    i

    i

    t

    t

    .

    .

    5

    5

    .

    .

    E

    E

    x

    x

    p

    p

    o

    o

    r

    r

    t

    t

    i

    i

    n

    n

    c

    c

    e

    e

    n

    n

    t

    t

    i

    i

    v

    v

    e

    e

    s

    s

    ,

    ,

    l

    l

    i

    i

    k

    k

    e

    e

    D

    D

    u

    u

    t

    t

    y

    y

    D

    D

    r

    r

    a

    a

    w

    w

    b

    b

    a

    a

    c

    c

    k

    k

    ,

    ,

    C

    C

    a

    a

    s

    s

    h

    h

    C

    C

    o

    o

    m

    m

    p

    p

    e

    e

    n

    n

    s

    s

    a

    a

    t

    t

    o

    o

    r

    r

    y

    y

    S

    S

    u

    u

    p

    p

    p

    p

    o

    o

    r

    r

    t

    t

    ,

    ,

    S

    S

    a

    a

    l

    l

    e

    e

    o

    o

    f

    f

    l

    l

    i

    i

    c

    c

    e

    e

    n

    n

    c

    c

    e

    e

    s

    s

    e

    e

    t

    t

    c

    c

    .

    .

    6

    6.

    .I

    In

    nt

    te

    er

    re

    es

    st

    t,

    ,

    s

    sa

    al

    la

    ar

    ry

    y,

    ,

    b

    bo

    on

    nu

    us

    s,

    ,

    c

    co

    om

    mm

    mi

    is

    ss

    si

    io

    on

    n

    o

    or

    r

    r

    re

    em

    mu

    un

    ne

    er

    ra

    at

    ti

    io

    on

    n

    e

    ea

    ar

    rn

    ne

    ed

    d

    b

    by

    y

    a

    a

    p

    pa

    ar

    rt

    tn

    ne

    er

    r

    o

    of

    f

    a

    a

    F

    Fi

    ir

    rm

    m

    f

    fr

    ro

    om

    m

    s

    su

    uc

    ch

    h

    F

    Fi

    ir

    rm

    m.

    .

    77.. CC aapp ii ttaall GG aaii nn ss cchh aarrggeeaabbll ee uu // ss 4455..

    88.. PPrrooffii ttss aann dd gg aa ii nn ss ffrroomm tthh ee bbuu ssii nn eessss oo ff bbaann kk ii nn gg ccaarrrrii eedd oo nn bbyy aa ccoooo pp eerraa ttii vv ee ssoo ccii eettyy ww ii tthh ii ttss mm eemm bbeerrss..

    99.. WWii nnnn ii nngg ss ffrroomm ll oo tttteerrii eess,, ccrroo ssssww oorrdd pp uu zz zz ll eess,, rraacceess ii nn ccll uu dd ii nn gg hh oorrssee rraacceess,, ccaarrdd gg aamm eess aann dd oo tthh eerr gg aamm eess ooffaann yy ssoo rr tt oo rr ffrroo mm gg aamm bb ll ii nn gg oo rr bb eett ttii nn gg oo ff aann yy ffoo rrmm oo rr nn aa ttuu rreeww hh aa ttssoo eevv eerr ..

    1100.. DD eeeemm eedd ii nn ccoomm ee uu // ss 4411 oo rr 5599..

    1111.. SSuu mm ss rreecceeii vv eedd bbyy aann aasssseesssseeee ffrroomm hh ii ss eemm pp ll ooyy eeeess ttooww aa rrdd ssww eell ffaa rree ffuu nndd ccoonn ttrrii bbuu ttii oonn ss ssuu cchh aass PPrroovv ii dd eenn tt

    F

    F

    u

    u

    n

    n

    d

    d

    ,

    ,

    S

    S

    u

    u

    p

    p

    e

    e

    r

    r

    a

    a

    n

    n

    n

    n

    u

    u

    a

    a

    t

    t

    i

    i

    o

    o

    n

    n

    F

    F

    u

    u

    n

    n

    d

    d

    e

    e

    t

    t

    c

    c

    .

    .

    1

    1

    2

    2

    .

    .

    A

    A

    m

    m

    o

    o

    u

    u

    n

    n

    t

    t

    r

    r

    e

    e

    c

    c

    e

    e

    i

    i

    v

    v

    e

    e

    d

    d

    u

    u

    n

    n

    d

    d

    e

    e

    r

    r

    K

    K

    e

    e

    y

    y

    m

    m

    a

    a

    n

    n

    I

    I

    n

    n

    s

    s

    u

    u

    r

    r

    a

    a

    n

    n

    c

    c

    e

    e

    P

    P

    o

    o

    l

    l

    i

    i

    c

    c

    y

    y

    i

    i

    n

    n

    c

    c

    l

    l

    u

    u

    d

    d

    i

    i

    n

    n

    g

    g

    b

    b

    o

    o

    n

    n

    u

    u

    s

    s

    t

    t

    h

    h

    e

    e

    r

    r

    e

    e

    o

    o

    n

    n

    .

    .

    1

    1

    3

    3

    .

    .

    A

    A

    m

    m

    o

    o

    u

    u

    n

    n

    t

    t

    r

    r

    e

    e

    c

    c

    e

    e

    i

    i

    v

    v

    e

    e

    d

    d

    u

    u

    n

    n

    d

    d

    e

    e

    r

    r

    a

    a

    g

    g

    r

    r

    e

    e

    e

    e

    m

    m

    e

    e

    n

    n

    t

    t

    f

    f

    o

    o

    r

    r

    (

    (

    a

    a

    )

    )

    n

    n

    o

    o

    t

    t

    c

    c

    a

    a

    r

    r

    r

    r

    y

    y

    i

    i

    n

    n

    g

    g

    o

    o

    u