Best and recommended books for NTA UGC NET/SET June 2019 exam

Best books/Recommended books for NTA UGC NET/SET General paper one:

1. K.V.S Madhavan book:

This book, in its third edition, is designed and developed for students who aspire to build a career in academics and research field. It also prepares the candidates to qualify the National Eligibility Test (NET) and develop teaching and research Aptitude in real terms. Divided into ten units, this edition includes all important topics of teaching and research Aptitude and applications as per the latest syllabus (NET Paper I). A perfect blend of theory, practice questions, and discussions in the chapters are supported by updated facts, figures, diagrams and tables. This title specifically helps students to assess their Reasoning Ability, comprehension, divergent thinking and General Awareness. - over 2500+ Practice questions - Includes previous years’ papers with solutions from 2012–2018 - Topic-wise br>Chapter end questions for effective learning - presented in simple and crisp language with updated facts and data - supported by ample examples, diagrams and tables  Click the below the picture to buy the book online!

2. Arihant publication book:

This book Nta UGC NET/JRF/set teaching and research Aptitude General Paper 1" Has been revised as per the updated syllabus applicable from June 2019 onwards for aspirants who are opting for National Eligibility Test (NET) 2019 for the post of either Assistant Professor only or Junior Research Fellowship (JRF) and Assistant Professor both in Indian universities. It is divided into 10 units which are sub-divided into several sub-topics, covering complete syllabus in an easy-to-understand language supported by figures, diagrams etc. More than 3000 MCQs have been given as a whole. Units and chapters are incorporated with the last 9 years' Questions. It includes 5 Practice papers based on the latest pattern with online practice as well and provides solved papers of 2018 for knowing the trends of questions. Packed with well-structured and comprehensive study material, it is a must have book for anyone who wants to score well on General Paper 1 of nta UGC NET/JRF/set 2019. Click the below picture to buy the book online!

3. Trueman publications:

Best Selling Book for NTA UGC NET Exams. Covering new syllabus applicable from June, 2019 onward exams and new model papers ideal for SET (State Eligibility Tests) also. Click the below picture to buy the book online!

4. Oxford University press:

Oxford UGC NET Paper I covers exhaustively the latest 2019 syllabus of UGC NET Paper I for students who are aspiring to qualify the NET/JRF or set exams. The authors explain all the key concepts for the UGC NET exam in a crisp and clear manner. All chapters are accompanied with free lecture videos for students to understand difficult concepts. The ample pedagogy and practice material for the new syllabus bridges the gap between learning and assessment. Additionally, for students to practice in a real examination environment, 5 Free online full length mock tests are provided. Key features as per the latest 2019 UGC NET syllabus short cut tricks for students to solve difficult questions quickly Golden tips to quickly attempt questions 2004-2018 – Full solved papers (section wise as well as separate) important facts highlighted in separate columns Chapter overview provides what is the need to study and how many questions are expected from the Chapter lucid language with crisp explanation 05 Online full length mock tests through Oxford Areal Android/ iOS app lecture videos with chapters (on Oxford Areal app) online resources for students: lecture videos 5 Mock tests. Click the below picture to buy the book online!

5. Dr.Gaurav Jangra book:

The book NTA UGC NET Paper 1 - Theoretical Concepts and Practical Solutions (Second Edition - 2019) has been written afresh and covered whole syllabus of UGC NET Paper 1 (General Paper) i.e. teaching aptitude, research aptitude, reading comprehensions, communication, logical & mathematical reasoning, data interpretation, information and communication technology, people and environment and higher education system. The whole syllabus is divided into different units. Each unit covered all contents /topics in details in order to meet the requirement of UGC NET Syllabus. Several new Concepts and Multi Choice Questions were taken as per according to the latest examination pattern have been Incorporated as the latest practical problems and MCQs with the explanation at the end of each unit. Click the below picture to buy the book online! (Kindle edition only) 

Best books/books recommended for NTA UGC NET/SET Commerce:

1. Trueman publications:

Best selling book for nta UGC NET exams. Covering new syllabus applicable from June, 2019 onward exams and new model Papers ideal for set (state eligibility tests) also. Click the below picture to buy the book online!

2. BOOKHIVE INDIA publications:

These are the premium solved papers which contains solved papers of the subject from December 2014 till 2018. It has more than 2000 MCQS of the subject. MOREOVER EACH QUESTION PAPER IS SOLVED WITH MAXIMUM ACCURACY AND DETAILED EXPLANATION. 

Click the below picture to buy the book online!

 Happy learning! All the best! Thank you!

NTA UGC NET 2019 Commerce full free notes for income tax and corporate planning

Unit 10 - Income tax and corporate tax planning

Computation of taxable income under various heads:

Income from salaries

• Basic salary: fully taxable.
• Dearness allowance: fully taxable.
• Advance salary: taxable (only in the year of receipt).
• Bonus: fully taxable.
• Fees and commission: fully taxable.

• Overtime allowance: fully taxable
• Salary in lieu of notice period: taxable (only in the year of receipt)

• Annuity: taxable under the head salaries if it received from present employer and taxable under the head ‘Income from other sources’, if it is received from the former employer.
• House rent allowance (HRA): taxable upto certain extent.
• Special allowances: taxable upto certain extent.
• Entertainment allowance: fully taxable for private employees and taxable upto certain extent for govt employees.
• Leave travel concession (LTC)
• Retirement benefits like PF, gratuity, pension, and leave encashment: exempt upto certain extent.
• Perquisites: exempt upto certain extent.

Best books for NTA NET 2019 exam


Types of perquisites:

• Rent free furnished and unfurnished accommodation.

• Accommodation in a hotel
• Monetary obligations of the employee fulfilled by the employer.
• Fringe benefits such as interest free or concessional loans, travelling and touring facilities, free food and non alcoholic beverages, gift or voucher or token, credit cards, club membership, use of moveable assets, sale of moveable assets, services like gardener, sweeper, watchman and other servants, car facility, gas or electricity facility, facility and free or concessional educational facility.

Important exemptions under the head salaries:

House rent allowance: 

If the house is situated in metro cities (chennai, mumbai, kolkata, and delhi), actual allowance received or 50% of salary or rent paid in excess of 10% of salary, which ever is least, will be exempt from tax. 

If the house is situated in other cities, actual allowance received or 40% of salary or rent paid in excess of 10% of salary, which ever is least, will be exempt from tax.

Amount of exemption based on actual expenditure of allowance:

Actual allowance received or actual amount spent, whichever is least, will be exempt from tax in case of

• Travelling allowance
• Conveyance allowance
• Daily allowance
• Helper allowance
• Academic allowance
• Uniform allowance.

Fixed or specified exemption:

• Children education allowance: Rs 100 pm per child, upto 2 children.
• Hostel allowance: Rs 300 pm per child, upto 2 children.
• Transport allowance: Rs 3,200 pm only for handicapped employees.
• Allowance to transport employees: 70% of the allowance, upto Rs 10,000 pm.
• Underground allowance: Rs 800 pm
• Border area and remote area allowance: Rs 200 pm to Rs 1300 pm.
• Compensatory field area allowance: Rs 2,600 pm
• Compensatory modified field area allowance: Rs 1000 pm
• Special compensatory allowance: Rs 200 pm
• Special compensatory hilly area allowance: Rs 300 pm to Rs 7000 pm.

Taxable value of perquisites:

• Unfurnished accommodation:

 15% of salary is taxable for accommodation in a city more than 25 lakhs population; 

10% of salary is taxable for the accommodation in a city having population between 10-25 lakhs; and 

7.5% of salary is taxable for the accommodation in a city with less than 10 lakhs population.

• Furnished accommodation: taxable value of unfurnished accommodation + 10% of cost of furniture or hire charges.
• Accommodation in a hotel: taxable upto a minimum of actual charges or 24% of salary.
• Petty loans upto Rs 20,000 is exempt from tax
• Tea and snacks during working hours: exempt from tax.
• Free food and non-alcoholic beverages in a remote or offshore area: exempt from tax
• Gift upto Rs 5,000: exempt from tax

Maximum exemption limit for:

• Medical treatment outside India: Rs 2,00,000
• Gratuity: Rs 20,00,000 for employees covered under the gratuity act and Rs 10,00,000 for other employees.
• Leave encashment: Rs 3,00,000
• Compensation on voluntary retirement: Rs 5,00,000
• Retrenchment compensation: Rs 5,00,000
• Contribution of an employer to approved superannuation fund: Rs 1,50,000 every year.

Other important points:

• Gratuity, Commuted pension, and leave encashment is fully exempted from tax for govt employees.
• Leave encashment received in service is fully taxable.
• Relief under sec 89 available for advance or arrears of salary.

Deductions from salary (sec 16):

• Standard deduction: Rs 40,000 or actual salary whichever is less.
• Entertainment allowance: Only for govt employees upto minimum of actual allowance or 20% of salary or Rs 5,000.
• Professional tax or tax on employment.

NTA UGC NET 2019 Commerce full free notes for income tax and corporate planning

Unit 10 - Income tax and corporate tax planning

Agricultural income:

What is agricultural income?

• Any rent or revenue or income from land;

• Any income from such land by agriculture or from processing of agricultural products and sale of such agricultural products;

• Any income from farm building on or near by such agricultural land which is subject to land revenue or local rate.

The above three types of income shall be considered as ‘agricultural income’ only if the following conditions are satisfied:

• Income must be derived from land.

• Land must be situated in India.

• Land must be used for agricultural purposes.

Income which are considered as an agricultural income:

• Income from nursery (saplings and seedlings grown in a nursery) shall be treated as agricultural income.

• Agriculture includes horticulture (gardening), sylviculture (developing forests) , floriculture (Growing plants), and arboriculture (growing trees).

Partially agricultural income and partially non-agricultural income:

Rule 7 – General rule (except for tea, coffee, and rubber)

Non-agricultural income = sale value of industrial product (eg., sugar) – market value of agricultural raw material – industrial expenses. (fully taxable).

Agricultural income = market value of agricultural raw material – cost of cultivation (fully exempted).

For example, 

Manufacturing value of potatoes for making chips = Rs 8 lakhs, cultivation costs = Rs 5 Lakhs; Hence, agricultural income = Rs 8 lakhs - Rs 5 lakhs = Rs 3 Lakhs (exempt)

Rule 7A – Growing and manufacturing rubber in India.

Total income = sale value of rubber – cost of cultivation – industrial expenses.

Agricultural income = 65% of the total income (exempt)

Non-agricultural income = 35% of the total income (taxable)

Rule 7B – Growing and manufacturing coffee in India.

Total income = sale value of coffee – cost of cultivation – industrial expenses.

Case 1 – Growing and curing coffee by the seller 

Agricultural income = 75% of the total income (exempt)

Non-agricultural income = 25% of the total income (taxable)

Case 2 – Growing, curing, roasting, and grinding by the seller with or without mixing chicory or other flavouring ingredients.

Agricultural income = 60% of the total income (exempt)

Non-agricultural income = 40% of the total income (taxable)

Rule 8 – Growing and manufacturing tea in India.

Total income = sale value of tea – cost of cultivation- industrial expenses.

Agricultural income = 60% of the total income (exempt)

Non-agricultural income = 40% of the total income (taxable)

How to compute tax if the total income includes agricultural income also? (partial integration)

There are two conditions which are to be satisfied for partial integration:

• The agricultural income (net) exceeds Rs 5,000.
• Non-agricultural income exceeds the minimum exemption limit for an individual (except the individual who are above 60 years of age) , HUF, etc. 

(The maximum exemption limit for the assessment year 2019-2020 is Rs 2,50,000)

Following are the steps to be followed for partial integration:

Step 1 - Calculate the aggregate of agricultural income and non-agricultural income.

Step 2 - Calculate tax at the prescribed rate on the aggregate income assuming that the aggregate income is the total income.

Step 3 - Add agricultural income to the maximum exemption limit available to an assessee.

Step 4 - Calculate tax at the precribed rate on such amount computed under step 3 as if it is the total income.

Step 5 - Deduct the income tax calculated under step 4 from the income tax calculated under step 2.

Step 6 - The amount so arrived at will be the total income tax of an assessee.

Step 7 - Calculate surcharge if applicable, on the total income tax.

Step 8 - Add H&EC (Health and Education cess) at 4% on the total of income tax and surcharge.

NTA UGC NET 2019 Commerce full free notes for income tax and corporate planning

Unit 10 - Income tax and corporate tax planning

List of Exempted incomes

• Agricultural income [section 10(1)]

• Amount received by a HUF member.

• Share of profit of a partner from a firm [sec 10(2A)]

• Leave travel concession of an employee subject to certain conditions [sec 10(5)]

• Allowances and Perqisitues of government employees posted outside India [sec 10(7)]

• Remuneration to persons who are not citizens of India (remuneration received by diplomats, foreign national, non-resident employed on a foreign ship and employee of foreign government during his training in India).

• Death-cum retirement gratuity subject to certain conditions [sec 10(10)]

• Payment of commutation pension subject to certain limits [sec 10(10A)]

• Leave encashment subject to certain limits [sec 10(10AA)]

• Compensation on retrenchment up to Rs 5,00,000.

• Payments received under Bhopal gas leak disaster act, 1985.

• Compensation received or receivable for any disaster.

• Amount received on voluntary retirement upto Rs 5,00,000 [sec 10(10C)]

• Tax on non-monetary perquisites paid by employer.

• Provident fund [sec 10(11)].

• Amount received under a life insurance policy.

• Payments from recognised provident fund [sec 10(12)]

• Amount received at the time of closure of National Pension Scheme upto 40% and wholly exempted, if it is received by the nominee.

• Partial withdrawal (25%) of amount from NPS.

• House Rent Allowance (HRA) subject to certain limits [sec 10(13A)].

• Amount received from approved superannuation fund.

• Notified special allowances upto certain limits.

• Interest, bonus or premium on notified investments.

• Amount received from Sukanya Samridhi account.

• Family pension received by the family members of armed forces killed.

• Education scholarshipsscholarships, i.e, scholarships granted to meet the cost of education.

• Allowances of MPs and MLAs.

• Award or reward given by the government.

• Pension received by certain awardees or their family members.

• Annual value of one palace of ex-ruler.

• Income of specified news agency.

• Income of a local authority.

• Income of an approved scientific research association.

• Income of Prasar Bharti (Broadcasting Corporation of India).

• Income of professional institution or association.

• Income of notified mutual funds.

• Income of a Sikkimese.

• Income of trade union.

• Income of ST members living in certain areas.

• Income of special funds of national importance (PM National relief fund, CM relief fund, etc).

• Income of a securitisation trust.

• Income of a minor child clubbed with the income of parents upto Rs 1,500 for each minor child.

• Income of investor protection fund of depositories.

• Dividend of shareholders other than any income by way of dividend chargeable to tax under section 115BBDA.

• Income of a shareholder on account of buy back of shares. (Unlisted)

• Certain income of international sports event held in India.

• Income from units of unit holders.

• Income of an investor from a securitisation trust.

• Capital gain on compulsory acquisition of agricultural land situated in certain urban areas.

• Income of an infrastructure debt fund.

• Income of a foreign company for storage and sale (resident) of crude oil in India.

• Amount received as loan under reverse mortgage by an individual.

• Certain allowances and perquisites of present or retired Chairman and members of UPSC.

• Specified income received by certain foreign companies.

• Income received from New pension system trust.

• Specified income of notified board or trust or commission or body or authority.

• Income of electoral trust.

• Income from property used for religious or charitable purposes.

• Income of National Financial Holdings Company Limited set up by the Central Government.

• Income from voluntary contributions of trusts or institutions.

• Income from political parties. (Rs 2,000 if it is received in cash).

• Exemption to newly established units in special economic zones.

NTA UGC NET 2019 Commerce full free notes for income tax and corporate planning

Unit 10 - Income-tax and corporate planning

Residential status:

(A) Residential status of an individual: (Section 6)

Basic conditions: 

1. An individual is in india for 182 days or more during the relevant previous year.
2. An individual is in india for 365 days or more during the four years preceding the relevant previous year and he/she is in india for 60 days or more during the relevant previous year.

Additional conditions:

1. He/she has been resident in india for atleast 2 previous years out of 10 previous years preceding the relevant previous year.
2. He/she has been in india for atleast 730 days in 7 previous years preceding the relevant previous year.

• Ordinarily resident - An individual is considered as resident in india if he/she satisfies any one of the basic conditions and two additional conditions.
• Non-ordinarily resident - An individual is considered as non-ordinarily resident if he/she satisfies any one of the basic conditions and one or none of the additional conditions.
• Non-resident - An individual is considered as non-resident if he satisfies none of the basic conditions.

Other important points to remember:

• An assessee can be resident in two or more countries at the same time.
• For tax calculation, the residential status of an assessee during the assessment year is not important. Only residential status of the previous year is relevant.
• If the individual is in india only for a part if the day, the calculation is made on 'hourly basis'. If data is not available, then the day of arrival in india and the day of departure from india are taken into account for determining the residential status.
• If an indian citizen goes abroad for employment or as a member of crew of an Indian ship in the previous year or if an Indian citizen or a person of Indian origin living outside india visited india in the previous year, the first basic condition will remain the same. But the 60 days in the second basic condition will be replaced by 182 days.
• A person of Indian origin means if he/she or either of his/her parents or grand parents, was born in India or undivided India. (Grand parents include both maternal and paternal grand parents).
• Residential status of an individual is not fixed in nature. It changes from time to time, i.e., a an individual may be ordinarily resident in one previous year and non-resident in another previous year.
• The residential status of an individual applies to all sources of income in the relevant previous year.
• The object of stay of an individual in india is not important.
• The stay of an individual in India may be continuous and need not be at one place.

(B) Residential status of Hindu Undivided Family (H.U.F) [Section 6(2)] 

1. Resident - The control and management of affairs of HUF is situated wholly or partly in india during the relevant previous year.
2. Ordinarily resident - If the 'Karta' (head of the HUF) satisfies both the additional conditions as an individual, then the HUF is said to be ordinarily resident in India.
3. Non-ordinarily resident - If the 'Karta' satisfies one or none of the additional conditions as an individual, then the HUF is said to be non-ordinarily resident.
4. Non-resident - The control and management of  affairs of HUF is situated wholly outside India during the previous year.

(C) Residential status of Firm, Association of persons (AOP), Body of individuals (BOP) [Section 6(2)] and every other person (Local authority and other artificial judicial persons) [Section 6(4)]

1. Resident - The control and management of its affairs is situated wholly or partly in India during thr relevant previous year.
2. Non-resident-The control and management of its affairs is situated wholly outside India during the relevant previous year.

(D) Residential status of Companies [Section 6(3)]

• Indian company: An Indian company is always a resident in india.
• Foreign company:

1. Resident - The control and management of its affairs is situated wholly in India during the previous year.
2. Non-resident-The control and management of its affairs is situated wholly or partly outside India during the previous year.

Other important points to remember:

• The control and management of affairs indicates the head, controlling and directing power.
• Firm, Association of persons, body of individuals, companies and every other artificial judicial persons cannot enjoy non-ordinarily resident status.

Tax incidence:(Section 5)

Three important points to be remembered for calculating the total income of an assessee:

1. The residential status of an assessee.
2. The place of accrual or receipt of income.
3. The point of time at which the income had accrued or was received.

(A) Indian Income

• Income was received and accrued in  india during the relevant previous year.
• Income was received in india but accrued outside India during the relevant previous year.
• Income was received outside India but  accrued in india during the relevant previous year.

(B) Foreign Income

• Income received and accrued outside India during the relevant previous year.
• Income not received and not accrued in india during the relevant previous year.

Total taxable income of resident/non-ordinarily resident:

1. Income received or deemed to be received in india but accrued in India or outside India.
2. Income accrued or deemed to be accrued in India but received in India or outside India.
3. Income accrued and received outside India.
4. Income received or accrued in India from the business controlled from India or profession in India.
5. Income received or accured outside India from the business controlled from India or professiom in India.

Total taxable income of non-ordinarily resident:

1. Income received or deemed to be received in india but accrued in India or outside India.
2. Income accrued or deemed to be accrued in India but received in India or outside India.
3. Income received or accrued in India from the business controlled from India or profession in India.

Total taxable income of non-resident:

1. Income received or deemed to be received in india but accrued in India or outside India.
2. Income accrued or deemed to be accrued in India but received in India or outside India.

Other important points to remember:

• Income remitted to india during the relevant previous year which was accrued and received outside India during the preceding previous years is not taxable.
• Share of profit from firm in india and past untaxed profits brought to india are exempted from tax.
• Dividend from Indian companies and UTI, etc are not taxable.

NTA UGC NET 2019 Commerce full free notes for income tax and corporate planning

Unit 10- Income-tax and corporate tax planning

Basic concepts:

• "Tax on income other than agricultural income" is imposed and charged by the central government according to entry 82 of union list (list I) of seventh schedule to the article 246 of the Constitution of India.
• The state government is empowered to charge tax on agricultural income as per entry 46 of state list (list II).
• Provisions in income tax are governed by Income tax act, 1961 and supported by Income tax rules, 1962 which are prepared by 'Central board of direct taxes' (CBDT).
• Income tax is one of the major source of income to the central government.
• Agricultural income [Section 2(1A)] - It is fully exempted from tax as per section 10(1).
• Assessment is a process or procedure where the assessing officier determines the income of an assessee.
• Assessee [Section 2(7)] means a person by whom any tax or any other sum of money is payable under the Income tax act, 1961.
• Person [Section 2(31)] includes:

1. an individual  
2. a Hindu undivided family(HUF) 
3. a company 
4. a firm 
5. an association of persons 
6. a body of individuals 
7. a local authority
8. every other artificial juridical person.

• Income [Section 2(24)] includes all such incomes laid down under this act.
• Heads of Income [Section 14] contains:

1. Income from salaries (sec 15-17)
2. Income from house property (sec 22-27)
3. Income from profits and gains of business or profession (sec 28-44)
4. Income from capital gains (sec 45-55)
5. Income from other sources (sec 56-59)

• Gross total income [Section 80B (5)] means the total income of an assessee before any deductions.
• Total income [Section 2(45)] means income remaining after all deductions and income tax is charged on this total income at the prescribed rate.
• Assessment year [Section 2(9)] denotes the period of 12 months starting from 1st April every year and ending on 31st March of the following or next year. The previous year income of an assessee is assessed in the assessment year and tax is calculated at the prescribed rates.
• Previous year [Section 3]  denotes the year in which income is earned. Such income is taxable in the assessment year.