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Index

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ch.
About the book
chapter name Page

1 Basic concepts 1-4

2 Residence & Scope of Total Income 5

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Master Income Tax with Ease – CA Vivek Gaba’s Crux Book for
3 Salaries 6-9 May 2025 & Onwards!
4 Income form house property 10

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5 Profits & gains of business or profession 11-15 Are you preparing for the taxation exam and looking for a book
6 Capital gains 16-19 that simplifies complex concepts while ensuring maximum
7 Income from Other sources 20 retention?
8 Income of other Persons included in assessee's TI 21

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Look no further! Income Tax Crux Book for May 2025 & Onwards
9 Aggregation of income,setoff and carry forward of losses 22 by CA Vivek Gaba is your ultimate guide to success.
10 Deduction from Gross total income 23-25

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11 Alternate Minimum tax 25
Designed with a student-friendly approach, this book condenses
12 Advance tax, TDS & TCS 26-29

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13 Return 30 the vast syllabus into just 30 pages, making it the perfect tool for

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efficient and effective revision.
Abbreviation With a color coded system :-
PY Previous year IPPY Immediately preceeding previous year

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AY Assessment year ROR Resident and ordinary Resident
-Blue for content
RPY Relevant Previous year RNOR Resident and not ordinary Resident -Red for crucial points
NR Non resident LTCG Long term capital gain -Green for amendments
R Resident STCG Short term capital gain

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It ensures clarity and focus on what truly matters. Whether you’re
GAV Gross annual value AOP Associate of person struggling with intricate provisions or aiming for last-minute
FR Fair rent BOI Body of individual

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revision, this book provides the perfect balance of conceptual
MV Municipal value AJP Artificial Juridical Persons
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understanding and exam-oriented preparation. Stay ahead, stay
Standard rent H&E cess Health and education cess
AR Actual rent URFA Unfurnished rent free accommodation confident, and master Income Tax effortlessly!
ER Expected rent ICOI Index cost of improvement
DA Dearness allowance ICOA Index cost of Acquisition "Success is not about how much you read, but how well you
T/O Turnover SC Sale consideration understand and apply it!"
Er Employer TDS Tax deducted at source
Ee Employee TCS Tax Collection at source
FMV Fair market value GR Gross Receipts
SDV Stamp duty value TI Total Income
 Chapter -1 Basic Concepts
Total Income and Tax Payable Definition of Previous year & Assessment year Marginal relief
Income Tax Liability =Total Income × Tax Rates PY (sec 3) AY (sec 2g) Particular Amount

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Step 1 :- Determine of Residential status 1. The year in which Income 1. The year in which Income is [A] Compute income tax including xxx
Total income of an assessee is based on the residential is earned. chargeable to tax . surcharge on Total income
status of an assessee. 2. It may be 12 month or less 2. It may be always 12 month. [B] Compute Income tax on 50L/1cr/2cr xxx

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Residential status R ROR than 12 month. 3. It always start from date 1st [C] Excess tax payable (A-B) xxx
NR RNOR 3. It start from date of setup. April, [D] Excess income from 50L/1cr/2cr xxx
Step 2 :- Classification of Income under different 4. For may/june/Sep/Dec 25 , 4. For may/June/Sep/Dec 25 ,
PY 24-25 is relevant.
[E] Marginal relief (C-D) xxx

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heads AY 25-26 is relevant.
[F] Tax liability (A-E) xxx
Income arise from unlimited sources but distributed into 5
heads of Income.
Add:- 4% Health & Education cess xxx
a) Salary [sec 15 to 17] Cases when income of PY will assessed in PY itself Tax liability (Including cess) xxx

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b) House property [sec 22 to 27] Shipping business of non resident.
c) PGBP [sec 28 to 44DB]
d) Capital gains [sec 45 to 55A]
Person leaving India. Rebate under 87A
e) Other sources [sec 56 to 69]
AOP/BOI/Artificial judicial person formed for a particular
event or purpose.
Step 3 :- Computation of Income under each heads of Income Person likely to transfer property to Avoid tax. Individual Resident in Total Income

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Step 4 :- Clubbing of the Income of spouse , son's wife,minor Discontinued business. India upto ₹7,00,000
child etc.
Heath & Education cess on income tax Rebate
Step 5 :- Setoff or carry forward of losses 4% H&E cess applies to All taxpayers on income tax ,funding

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Healthcare and education initiative. 1. 100% Income tax payable
Step 6 :- Gross Total Income
or whichever is
Step 7 :- Deduction from Total Income
Default tax regime u/s 115 BAC of IT ACT 1961 2. ₹25,000 less

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Deduction under VIA
Other names= Concessional scheme, New regime What if total income more than ₹7,00,000?

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Deduction under 10AA
Step 8 :- Computation of Total Income Applicability = Individual ,HUF,AOP,BOI,AJP Step Process Amount
Step 9 :- Rounding off of Total Income (Whether R or NR irrespective of age) Step 1 [A] Total income (-) ₹7,00,000 xxx

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In multiple of ₹10 (last digit < 5 =last 10 ),(last digit > 5=next 10)
Total Income Step 2 [B] Compute Tax liability on xxx
Rate
Total income
Step 10 :- Application of Tax rates and compute Tax Upto ₹3,00,000 NIL Step 3 [C] If B>A ,rebate = B(-)A xxx
Normal rates Default Scheme u/s 115BAC ₹3,00,010 - ₹7,00,000 5%
Special rates Optional Scheme (F ACT) ₹7,00,010 - ₹1,000,000 10%

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Step 11 :- Applicability of surcharge or rebate on above tax ₹10,00,010 - ₹12,00,000 15% Important points
liability ₹12,00,010 - ₹15,00,000 20%
Step 12 :- Health and education cess on Income Tax ₹15,00,010 (i.e more than) 30% Tax liability is less than increase in income exceed

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₹7,00,000 No rebate allowed.
Step 13 :- Alternate minimum tax (AMT) Rebate allowed before adding 4% H&E cess.
Applicable on when opt for optional scheme Surcharge under default Tax regime No rebate is allowed for LTCG u/s 112A.
Tax payable=Higher of AMT or Tax under optional scheme.
Total Income Rate No rebate is allowed unexplained money.
Step 14 :- Examine whether to pay tax under the default tax
regime or optional regime Upto ₹50,00,000 NIL
Step 15 :- Deduction of TDS/TCS or Advance Tax >₹50,00,000 - ₹1,00,00,000 10% of tax
>₹1,00,00,000 - ₹2,00,00,000 15% of tax
Step 16 :- Tax Payable/Tax Refundable
>₹2,00,00,000 25% of tax
Step 17 :- Rounding off of Final Tax
In multiple of ₹10 (last digit < 5 =last 10 ),(last digit > 5=next 10)

Step 18 :- Payment to govt if tax payable through Return of

Income

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