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Trick to Remember Section 80 Deductions | Mnemonic Codes |IPCC FINAL TAX NOTES MAY NOV 2017
Remembering all the Income Tax Section 80 Deductions is no mean task.
There are such instances where students get confused with one section number with the other section numbers. This leads to much bigger problems.
To solve this confusion to some extent, We are providing the list of Section 80 Deductions along with the Mnemonic code to remember them.
Mnemonic Code for Section 80 Deductions:
80D se dawai
80E se education
se Garib gov. Ko donation
dependent dukhi bimar
gadhe ghode (donation to politicial party) charao by foriegn co.
gadhe ghode (donation to politicial party) banao by indian
Gaav development with science
quality quality Books
royalty to resident
Section 80 Deductions Quick Revision Before Exam:
80C [Contribution to PPF, LIC etc]
80CCC [Pension Funds] and 80CCD(1):
Rs.1,50,000 Deduction for the above two.
80CCG [Investment in Equity Savings]
50% of amount invested
Whichever is lower
80DD [Maintenance and Medical Treatment of Disabled dependent]:
Flat Deduction of Rs.75,000 (In case of severe disability i.e., 80%, Deduction is Rs.1,25,000]
80D [Medical Insurance Premium]
Rs.25,000 allowed (Rs.30,000 in case of senior citizen)
80DDB [Medical treatment for specified diseases]:
Rs.40,000 for Normal Individuals
Rs.60,000 for Senior Citizens
Rs.80,000 for Super Senior Citizens
80E [Interest on Educational Loan]:
Deduction allowed in Initial Assessment Year and 7 preceeding years.
CA IPCC Gratuity Act Law Notes | 5 Min Revision |IPCC LAW NOTES MAY/NOV 2017 |
As Part of CA IPCC Law. Notes Edition, Entire Gratuity Act has been provided as a 3 Minute Summary for quick revision before exam. The Entire Chapter has been explained with simple language and easy examples.
# The Act applies to every Factory, Mine, Port, Railway Company and Establishments employing 10 or more people.
# The Act applies to Temples also [Shree Jagannath Temple Vs Jagannadh Padhi].
5 Continuous Years:
Gratuity shall be payable to employees who have worked for straight 5 Continuous Years in an organisation.
In order to say that an employee has worked for One Continuous Year, the employee must have worked for at least:
> 190 days (if the employee is working in an underground Mine, or if the organisation works only 5 days a week).
> 240 days in any other case.
For Example:Mr.Ramesh is working in Google. Google works only from Mon to Friday. So, For the last year, Ramesh must have actually worked for at least 190 Days to say that he has worked for One Continuous Year.
In case of Seasonal establishments, an employee is said to have worked for One Continuous Year, if he has actually worked for at least 75% of total working days of that Seasonal Establishment.
For Example, Mr. Vikram is working in a Fire Crackers Factory in Nagpur. Last Year, the factory has run for only 140 days. So, Vikram is said to be in work for One Continuous Year if he has worked for at least 98 days (75% of 140 days).
Certain Days to be Included:
While calculating the working days of an employee above (190, 240 and not 75% days), the following days shall also be added, even though the employee hasn’t come to the factory:
He has been laid-off of certain days
leave with full wages
Maternity Leave (max of 12 weeks)
He has been absent due to temporary disablement caused by accident arising out of and in the course of his employment
Amount of Gratuity Payable:
In case of monthly rated employee:
Gratuity = Last drawn wages X 15/26 X completed/part years of service
In case of piece rated employee:
Gratuity = Ave of Last 3 Month Wages X 15/26 X completed years of service
In Case of Seasonal Establishment:
Gratuity = Last Drawn Wages X 7/26 X completed years of service
“The Maximum Amount of Gratuity Payable to an employee is Rs.10,00,000”
Gratuity in case of disabled employee:
If an employee becomes disabled due to an
accident, and was re-employed in the same organisation for reduced wages, Gratuity shall be calculated twice. Once, up to the date of accident with that salary and Second, For the period subsequent to the disablement.
For Example: Mr.Vivek is a Manager in Reliance. He is drawing a salary of Rs.1,00,000 for the past 10 continuous years. On Jan 1st, 2014 he met with an accident and lost both his legs. Reliance re-employed him for a Clerk Job for a Salary of Rs.25,000.
Vivek is retiring today. So, Gratuity calculation shall be made twice.
One calculation upto 1st Jan 2014 by taking Rs.1,00,000 as Last Drawn wages and Second calculation for the subsequent period by taking last drawn wages as Rs.25,000
Every employee who has completed 1 year of service, is compulsorily required to make a nomination. The nomination must be made within 30 days of completion of one year of service.
If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family shall be void.
Return of Income 5 Min Summary | CA IPCC Tax Notes |
1. For Companies and Firms, it is compulsory to file Return of
Income. However, for others, Return shall be filed only if there is a taxable income.
2. Indian Resident who is a owner or beneficial owner of an asset situated outside India shall also file a Return of Income.
Various Due Dates for Filing Return of Income are:
Persons whose accounts are being Audited (for eg. Audit u/s 44AB)
Partner in a Firm
Assessee who is required to furnish report u/s 90E (Transfer Pricing)
All other Cases
# After these due dates, a person can still file a Return which is called a Belated Return. A Belated Return shall be filed, before end of that AY, or before the completion of Assessment,
Which ever is earlier.
# If a Return is filed after due date specified above, Interest @1% each month has to be paid.
Return of Losses:
If the assessee has any of the following losses, a Return has to be filed:
Speculation business loss
Loss under Capital Gains
Loss from the activity of owning and maintaining race horses
Return by Political Parties:
Income of Political parties can be exempted under section 13A. To claim this exemption, such political party has to file a Return of Income. Such Return will be signed by its CEO.
Who Shall verifiy Return of Income (Who will Sign It)
Return Filed by
Who Will Verify
Chief Executive Officer
PAN – Who shall Apply
Every Person whose total income is more than basic deduction limit (and )Person carrying on a business whose gross receipts exceeds Rs.5 Lakh, shall apply for a PAN.
Quoting of PAN:
A person doing following transactions must quote his/her PAN:
Purchasing a Motor Vehicle, Opening a Bank Account, Applying for a Credit Card and Opening a Demat Account.
Payment exceeding Rs.50,000 for Hotel or Restaurant Bill, Foreign Travel Agency, Mutual Funds.
Sale or Purchase of any Immovable Property exceeding Rs.10 Lakh
# Where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the PAN of his father or mother or guardian.
Mega Exemption List Easy Learn with Pics | Tax Notes |
Service Tax Mega Exemption List have been consolidated at one place for ease of reference. This Mega Exemption list is prepared in such a way that, it can be easily remembered. The various Mega exemptions provided by the notification are discussed here under
1. Services to United Nations, UNESCO, IMF
2. Health care services
4. Religious ceremonies
5. Legal services
6 Recreational coaching or training
7. Educational services
8. Skill development services
9. Sports services
9B. Sponsorship of sports events
10. Construction Services to Govt
11. Copyright Services
12. Artist performance
13. Collecting or providing news
14. Accommodation Services
15. Serving of Food or Beverages
16. Transportation of specified goods, by road/rail/vessel
16B. Passenger transportation services
17. Insurance business services
18. Services provided by an incubatee
19. Service by an unincorporated body or a non- profit entity to its own members
20. Govt Services like Health, Water
21. Services by Brokers, SIM Card Selling Agents
22. Works like Polishing Diamonds, textile processing etc.
23. Business Exhibition
24. Slaughtering of Animals Service
25. Services from Non-Taxable Territory
26. Public Libraries
29. Public Convenience Services
30. Services by Govt Authority
31. Warehousing of rice, cotton
32. Services Received by RBI
33. Tour Operator Service to a Foreign Tourist outside India
34. Services by operator of Common Effluent Treatment Plant
35. Services by way of pre-conditioning, pre-cooling, retail packing, labelling of fruits and vegetables
CA IPCC Company Law Amendments for May 2017 are quite high in number this time. Companies Act, 2013 has been amended many times for the past one year, which has led to bringing in new amendments in the IPCC Law paper. So, In this post, we will cover only the amendments in Company law portion.
The Amendments listed out below are applicable only for May 2017 CA IPCC exams.
There are total 27 Amendments in the Company Law portion. However, out of these, only six are applicable at IPCC level.
Amendments have been brought in almost all the topics like Deposits, Company Basics and General Meetings.
“There are few notable Amendments in Company Law Syllabus applicable for November 2016 Exams, which are presented below”
Amendments in Company Law May 2017
Public Companies now need to file a Declaration with SEBI and RBI (Only Certain Companies) and obtain approval at the time of filing the Incorporation Documents with the ROC. Earlier, there is no such rule to get the approval.
Minimum Capital Requirements of Rs.1 Lakh and Rs.5 Lakh removed for Companies. Now Public and Private Companies don’t have any such Minimum requirement.
In case of any Contravention in Accepting Deposits from Public, Companies now need to pay a Minimum fine of Rs.1 Crore and a Max of Rs.10 Crore.
Notice period for Section 8 (NPO) Companies for General Meetings reduced to 14 days. Earlier it is 21 days.
A Company need to serve documents only on such members who are holding at least Rs.1,000in face value of shares or 1% of total paid up share capital. Earlier, a company is bound to serve documents to all the members.
When a company goes for further issue of Share Capital, an Ordinary Resolution has to be passed. Earlier, it is SR.
Sections are not applicable for May 2017 Exam:
Section 48: Variation of shareholders right
Section 66: Reduction of share capital
Section 75: damages for fraud
Section 97: Power of Tribunal to call AGM
Section 98: Power of Tribunal to call meetings of members
Section 99: Punishment for default in complying with provisions of this section.
There are few other minor amendments in the Companies Act, which students can totally ignore, as these will be asked in CA Final exams only.
Importance of Amendments – May 2017
Students must put stress on these amendments because, most of the questions in November 2016 and May 2017 exams will be based on these amendments only.
Many Toppers of CA IPCC exams has mentioned in their interviews that, at least 20 marks will be asked in exams from these amendments only.
ICAI President, has also mentioned the same in the recently concluded National Convention for Students.
The best books to study these Amendments is ICAI Practice Manual. ICAI has been asking direct questions in Law paper from Practice Manual only.
Companies Act, 2013 defines prospectus as any document described as issued as the prospectus and includes red herring prospectus or shelf prospectus or any notice, circular, advertisement or other document inviting offers from the public for subscription or purchase of any securities.
Issue of Shares/Securities by Public Company:
A public company may issue securities in the following manner:
a) to public through prospectus (herein referred to as “public offer”), or
Offer or invitation to public includes the invitation to any section of public, members or debenture holders of the company, clients of the person issuing the prospectus or in any other manner.
[Where the invitation is issued to domestic concern (means, close relatives, and friends not exceeding 50), it is not treated as a public offer].
Time limit for issue of Prospectus:
The prospectus shall be issued within 90 days from the date of registration with ROC.
The date of issue of the prospectus is the date on which it first appears as an advertisement on a newspaper.
‘Abridged Prospectus’ contains the salient features of a prospectus. No application forms for shares shall be issued without attaching the Abridged Prospectus.
Shelf Prospectus and Information Memorandum:
“Shelf prospectus” means a prospectus in respect of which the securities or class of securities included therein are issued for subscription in one or more issues over a certain period without the issue of a further prospectus.
The Shelf Prospectus shall indicate a period not exceeding one year as the period of validity of such prospectus.
Before the issue of second or subsequent offer of securities under the shelf prospectus, the company shall be required to file an Information
Memorandum with the Registrar
Red Herring Prospectus:
The expression “Red Herring prospectus” means a prospectus which does not include complete particulars of the quantum or price of the securities included therein.
The company proposing to make an offer of securities may issue a red herring prospectus before the issue of a prospectus.
A company proposing to issue a red herring prospectus shall file it with the Registrar at least three days before the opening of the subscription list and the offer.
Co-Operative Society 10 Min Summary | CA Final Audit Notes |
A co-operative society is a business organization with a particular mode of doing business, by pulling together all the means of production co-operatively, elimination of intermediaries and exploitation from outside forces.
Audit of Co-Operative Societies ( Sec 17):
The Registrar shall audit or authorize some other person to Audit.
The audit shall include an examination of overdue debts and a valuation of the assets and liabilities of the society.
The Auditor shall at all times have access to all the books, accounts, papers, and securities of society.
Imp Points relating to the Audit:
1. A CA is qualified as an Auditor. But, few State Co-operative societies have permitted only persons holding a government diploma, or who has served as an auditor in the co-operative department of a government to act as an auditor.
2. An auditor of a co-operative society is appointed by the Registrar of Co-operative Societies.
3. No member of a society other than a registered society can hold share capital of the society was exceeding 20% or Rs.1,000 as Share Value.
4. A Society shall not make a loan to any person other than a Member. However, with the special sanction of the Registrar, a registered society may make a loan to another registered society.
5. A Society can accept loans and deposits from persons who are not members.
6. A society may invest its funds in
Central or State Co-operative Bank
Securities specified in section 20 of the Indian Trusts Act 1882
In the shares, securities, bonds or debentures of any other society with limited liability
In any co-operative bank, other than a Central or State co-operative bank, as approved by the Registrar on specified terms and conditions
7. A prescribed percentage of the profits should be transferred to Reserve Fund, before distribution as dividends or bonus to members.
8. A Society may, with the sanction of the Registrar, contribute an amount not exceeding ten%of the net profits to Charities.
Special Features of Co-Operative Audit
Examination of overdue debts
Certification of Bad Debts
Valuation of Assets and Liabilities
Adherence to Co-operative Principles
Observations of the Provisions of the Act and Rules
Verification of Members Register and examination of their pass books
Reporting irregularities to the Registrar
Auditors of Multi-State Co-operative Society:
The following persons are not eligible for appointed as auditors of a Multi-State Cooperative society:
A body corporate.
An officer or employee
A person who is indebted to the Multi-State Co-operative society
# First auditor or auditors of a Multi-State co-operative society shall be appointed by the Board within one month of the date of registration.
#The subsequent auditor or auditors are appointed by Multi-State co-operative society, at each annual general meeting.
Power of Central Government to Direct Special Audit
CG can order for a Special Audit, Where the Central Government is of the opinion that:
Affairs Not Managed in Accordance With Prudent Commercial Practices
Managed as it would Cause Injury to Interest of Trade or Industry or Business
Financial Position is such as would endanger its Insolvency.
#CG shall order for special audit only if that Government or the State Government either by itself or both hold fifty-one percent or more of the paid-up share capital in such Multi-State co-operative society
Inquiry & Inspection by Central Registrar
The Central Registrar may hold an inquiry or Inspection, on a request from
a federal co-operative to which a Multi-State Co-operative society is affiliated or
a creditor or not less than one-third of the members of the board or
not less than one-fifth of the total number of members of a Multi-state co-operative society.