Section wise list of Income Tax Act 1961

Income Tax Act 1961 Section wise details  Here is a way to easily remember AS  this will be useful to beginners

1 Disclosure of Accounting Policies
2 Valuation of Inventories
1 and 2 will be easily remembered as they are first two

3 Cash Flow Statements
has three words 1)CASH 2)FLOW 3)STATEMNTS


4 Contingencies and Events Occuring after the Balance Sheet Date
relates to transactions which fall outside the four walls of a room

5 Net Profit or Loss for the period, Prior Period Items and Changes in Accounting Policies
 thats my lucky number so have your own strategy

7 Construction Contracts
we give weekly(7 days) wages for labour of construction activity

8 Accounting for Research and Development
in R of Reaserch..have a small u below R it becomes 8 R+u=8

9 Revenue Recognition
this 9 is the highest number…after this zero will be added and the series continuos, many business people prefer combination of number 9 wherever they have to choose as they believe it earns highest revenue

10 Accounting for Fixed Assets
there are 10 assets for which COA and COI is taken as nill as per sec55 of IT Act

11 The Effects of Changes in Foreign Exchange Rates
the first thing flashes in our mind when we read forex is $ dollar, in the symbol S is crossed by 2 lines, i.e.,11

12 Accounting for Government Grants
Govt many times say that you invest 1rupee we will provide 2rupees as subsidy 1+2=12

13 Accounting for Investments
14 Accounting for Amalgamations
we are quite familiar with 13 and 14 in our accounts
for 14- 4 companies A,B,C,D were amalgamated and 1 company is formed 1 formed by 4, 1 by 4=14

15 Employee Benefits
thats my birthday, for you people sec15 of IT act is charging section for Income from salaries(paid to employee)

16 Borrowing Costs
3 sources are Equity Preference Debt as per COC of FM, when you borrow funds firms always try earn income atleast by double, 3X2=6

20 Earnings Per Share
Shareholder expects to double his property when he invests in shares, usually shares are for 10/- each

21 Consolidated Financial Statements
consolidation of 2 companies FS in 1 company=21

22 Accounting for Taxes on Income
In PCC tax is 2nd paper in 2nd group

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