CA Inter Paper 4 flashcards

31 cards. Read the term and the definition here. The deck at the top of this page is optional.

Basic condition for residence

An individual is resident if present in India for 182 days or more in the previous year, or for 60 days or more in that year plus 365 days in the four preceding years.

Deemed resident u/s 6(1A)

An Indian citizen whose Indian-source income exceeds Rs 15 lakh and who is not liable to tax abroad is deemed resident but always treated as RNOR, never ordinarily resident.

Rebate under section 87A

A resident individual with total income up to Rs 7,00,000 under the new regime gets a rebate of up to Rs 25,000, reducing tax to nil; the old regime limit is Rs 5,00,000.

Marginal relief on surcharge

Where income marginally exceeds a surcharge threshold, tax payable is capped at tax on the threshold amount plus the excess income, so the additional tax does not exceed the extra income.

HRA exemption formula

Exempt amount is the least of actual HRA received, rent paid minus 10% of salary, and 50% of salary for four metro cities or 40% elsewhere.

Standard deduction on salary

Rs 50,000 or the amount of salary, whichever is lower, is deducted under section 16(ia) in the old regime; the new regime allows Rs 75,000 from AY 2025-26.

House property interest cap

Interest on borrowed capital for a self-occupied house is deductible up to Rs 2,00,000 in the old regime; the new regime allows nil for self-occupied property.

Additional depreciation section 32

Manufacturing entities get 20% additional depreciation on new plant and machinery, halved to 10% if the asset is used for less than 180 days in the year of acquisition.

Section 112A long-term equity gains

Long-term capital gains on listed equity shares and equity-oriented funds held over 12 months are taxed at 10% on gains exceeding Rs 1,25,000, without indexation.

Section 80C aggregate ceiling

Deductions under sections 80C, 80CCC and 80CCD(1) are together capped at Rs 1,50,000 for an individual or HUF in a previous year.

Section 80CCD(1B) NPS deduction

An additional deduction of up to Rs 50,000 is allowed for the assessee's own contribution to NPS, over and above the Rs 1,50,000 ceiling under section 80C.

Presumptive income section 44AD

Eligible business turnover up to Rs 2 crore may be declared at 8% of turnover, reduced to 6% for receipts through prescribed banking channels, with no separate books required.

Advance tax instalment schedule

Advance tax is paid at 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March of the previous year.

Interest under section 234B

If advance tax paid is less than 90% of assessed tax, interest at 1% per month runs from 1 April of the assessment year until the shortfall is paid.

Belated return fee section 234F

A return filed after the due date attracts a fee of Rs 1,000, or Rs 5,000 where total income exceeds Rs 5 lakh, and can be filed up to 31 December.

Carry forward of business loss

Business loss can be carried forward for eight assessment years against business income only if the return is filed within the section 139(1) due date.

GST registration threshold

Registration is required when aggregate turnover exceeds Rs 40 lakh for goods and Rs 20 lakh for services, with these limits halved in specified special-category States.

Composition levy section 10

A manufacturer or trader with turnover up to Rs 1.5 crore may pay 1% of turnover, and a restaurant service provider pays 5%, both without input tax credit.

Time of supply for goods

The time of supply is the earlier of the invoice date or its last permissible date, and the date the supplier receives payment for the supply.

Time of supply for services

The earlier of the invoice date where issued within 30 days of supply or the provision date, and the date payment is entered in the books.

Transaction value section 15

Value of supply is the price actually paid where supplier and recipient are unrelated, the price is the sole consideration, and it includes packing, commission and price-linked subsidies.

Input tax credit conditions

ITC requires a valid tax invoice, receipt of goods or services, tax paid to the Government, filing of return, and the invoice being furnished in the outward return.

ITC time limit section 16(4)

ITC on an invoice or debit note cannot be availed after 30 November following the financial year or the annual return date, whichever is earlier.

Place of supply of goods

For goods involving movement, place of supply is where goods are handed over for movement; without movement, it is where the goods are located at delivery.

Place of supply immovable property

Services relating directly to immovable property, including architects, interior decorators, surveyors and hotel accommodation, have the location of the property as place of supply.

Zero-rated supplies

Exports of goods or services and supplies to Special Economic Zone units or developers are zero-rated; the supplier may export under bond or LUT and claim refund of unutilised ITC.

Inverted duty refund formula

Refund of unutilised ITC equals net ITC multiplied by the turnover of inverted-rated supplies divided by total turnover, and applies only to inputs, not capital goods.

Refund application time limit

A refund application under section 54 must be filed within two years of the relevant date, and the proper officer must pass an order within 60 days.

E-way bill threshold and validity

An e-way bill is required where consignment value exceeds Rs 50,000, and remains valid for one day for each 200 km or part thereof of movement.

Reverse charge mechanism

Under reverse charge the recipient pays GST directly and the supplier does not collect it; the recipient must be registered and include the tax in returns for that period.

GSTR-3B due date

The monthly summary return and tax payment under section 39 is due by the 20th of the following month; quarterly filers under QRMP pay by the 22nd or 24th.