Provisions related to Income Tax Act in respect of Individual
INCOME TAX TERMINOLOGY
• Assessment Year – ( Sec 2(9) • Assessment year may be defined as a year in which the income of the previous year is to be assessed. • In some countries it is called “ tax year” • It always starts on April 1 and ends on March 31 of the next year.
Heads of Income
• • • • • Salaries Income from House property Profits from Business or profession Capital Gains Income from Other sources
Previous Year – (Sec 3) • Income of the previous year is taxed in the immediately following assessment year. • In some countries it is called “ Income Year” • From the assessment year 1989-90 onwards all assesses are required to follow the financial year.
Previous Year in the case of newly set up business or profession
• In case of a newly set up business or profession or source of income newly coming in to existence , the first previous year will be the period commencing from the date of setting of the business / profession or as the case may be the date on which the source of income newly comes in to existence and ending on the immediately following March 31.
Assessee – Sec 2 (7)
• “ Assessee” means a person by whom Income tax or any other sum of money is payable under the act. • It includes every person in respect of whom any proceeding under the act has been taken for the assessment of his income or loss and the amount of refund due to him. • It also includes a person who is assessable in respect of the income or loss of another or who is deemed to be an assessee or an assessee in default under the provisions of the act.
Residential status – General Norms
• Assesses are either • Resident in India --- Resident and ordinarily resident ---- Resident but not ordinarily resident • Non Resident In India
Income from salaries
Cite This Essay
(2010, 12). Incomtax Act. StudyMode.com. Retrieved 12, 2010, from http://www.studymode.com/essays/Incomtax-Act-530486.html
"Incomtax Act" StudyMode.com. 12 2010. 12 2010 <http://www.studymode.com/essays/Incomtax-Act-530486.html>.
"Incomtax Act." StudyMode.com. 12, 2010. Accessed 12, 2010. http://www.studymode.com/essays/Incomtax-Act-530486.html.