Presented by:

02 Jayesh Chandnani
12 Saylee Dhonde
22 Nivedita Banerjee
32 Anurag
Bhagchandani
42 Taher Ghadialy

Income Tax provisions related to

Income from Salary, House Property,
Income from Other Sources and
Capital Gains

Introduction
Income from Salary

Any income accrued or received by a person for any service rendered

under an implied contract

Includes income from Wages, Annuity, Gratuity, Pension, Fees,

Commissions, Receipts from PF etc.

Income From House Property

Profits earned from any business or profession on a piece of land owned
by the owner is chargeable to tax

Includes income from Houses, Buildings, Bungalows, Godowns etc.

 Income from Other Sources

Any income which is not chargeable under any of the other heads of

income tax
Includes dividend received from any company other than a domestic

company, winning of lotteries, crosswords puzzles, interest from

subletting, bank deposits etc.

Income from Capital Gains

Any profits or gains arising from the transfer of a Capital Asset

effected in the previous year

Both, Short term and Long term Capital Gains are charged at different
rates

Budget Highlights
Tax rate, surcharge and education cess

remain unchanged
Education cess to continue at 3%
Section 80C deduction limit raised from

INR 1,00,000 to INR 1,50,000

To open 60 more Seva Kendras during the

current financial year to promote

excellence in service delivery.
To make greater use of information

technology techniques.

 To extend the investment linked deduction to two new

sectors, namely, slurry pipelines for the transportation of

iron ore, and semiconductor wafer fabrication manufacturing
units.
To provide that income arising to foreign portfolio investors

from transaction in securities will be treated as capital gains.

Net Effect of the direct tax proposals is revenue loss of Rs

22,200 crore

Policy Proposals
Government to review the Direct Taxes Code (DTC) in its present

shape
Committing to provide a stable and predictable taxation regime
Resident tax payers enabled to obtain an advance ruling in

respect of their income-tax liability above a defined threshold

A High Level Committee is proposed to be set to interact with

trade and industry on a regular basis

Salary
Basic exemption limit increased by INR
50,000 for Individuals taxpayers
This will help taxpayers to save:Salary (p.a)

Tax Savings (p.a)

Up to 5 lacs

8000/-

Up to 10 lacs

15,000/-

More than 10 lacs

20,000/-

Salary Includes:

Wages

Annuity or Pension

Gratuity

Fees, Commission, Perquisite or Profit in lieu of salary

Advance of salary and leave salary

Employers contribution to RPF (Recognized Provident Fund)

Contribution made by Central Government to Pension scheme

of New Government Employees.

House Property
Deduction limit for interest

expense in respect of self

occupied property raised from
INR 1,50,000 to INR 2,00,000
Method of calculating income or

loss on house property has been

changed subsequent on
introduction of additional interest
rebate of Rs. 1 lakh

 An additional Rs. 1.5 lakh interest rebate will be

applicable only if the housing loan amount did not

exceed Rs. 25 lakhs
Real-Estate investment trust to be set up in

accordance with regulations of the SEBI to provide

a conducive tax regime for Infrastructure
Investment Trusts

Before Budget
2014Person Having
Income Upto 5 lacs

After Budget 2014

Person Having Income
Upto 5 lacs

Gross Salary

500
Gross Salary
000

less deduction
U/S 80 + 80CCC

less deduction
1000
1500
U/S 80 + 80CCC
00
00

Taxable salary

40
Taxable salary
0000

Loss from HP
(due to interest
on loan taken
for

construction

350
000

1,5
0,00
0

Loss from HP
(due to interest
on loan taken
for construction
or renovation of
house)

2000
00

2,5
0,00
0

Net Taxable
income

1,50
,000

or renovation of
house)
Net Taxable
income

500
000

Other Sources
In Union Budget 2014, finance minister Arun Jaitley hikes tax

exemption limit under Section 80C to Rs1.5 lakh and income

tax slab for exemption.
Computation of tax on anonymous donations rationalized.

Capital Gains
Unlisted security and units (other than equity

oriented mutual fund) to be short-term capital

asset if held up to 36 months
LTCG from transfer of units of mutual funds,
other than equity oriented funds, to be tax at 20
per cent as against the present levy of 10 per cent
Capital gain exemption on investment in an
residential house property available only if the
investment is made in one residential house
situated in India.