An Introduction to Taxation in India
Income Tax: Introduction
The tax statutes in India:
Income Tax Act, 1961
Income Tax Rules, 1962
Amendments made by Finance Acts
decisions of Supreme Court
decisions of respective High Court
decisions of Income Tax Appellate Tribunals
Notifications and circulars issued by Central Board of Direct Taxes (CBDT)
Assessee
2 (7) “assessee” means a person by whom any tax is payable and includes—
• A person by whom any tax or any other sum of money (including interest and penalty) is payable under the Act • every person in respect of whom any proceeding under this Act has been taken either for the assessment of the amount of his income or of the income (or loss) of any other person in respect of whom he is assessable or of the amount of refund due to him or to such other person. or • every person who is deemed to be an assessee • every person who is deemed to be an assessee in default
Person
i) An individual ii) A Hindu Undivided Family (HUF) iii) A Company iv) A Firm or Limited Liability Partnership
v) An Association of persons (AOP) or Body of Individuals (BOI) vi) A local Authority vii) Every Artificial Judicial Person not falling under any of the above
Assessment year
- the period of twelve months commencing on the 1st day of April every year
Previous year
- the financial year immediately preceding the assessment year - in the case of a business or profession newly set up in a financial year, the previous year starts with period beginning with the date of setting up of the business or profession and ends with the said financial year
Charging of Tax
- Income of previous year chargeable to tax during assessment year - Income tax rates fixed by Finance Act - For computing Total Income, provisions of the Act as applicable on 1st April of the relevant Assessment Year will be applied (for procedural matters, provisions of the Act will be
The tax statutes in India:
Income Tax Act, 1961
Income Tax Rules, 1962
Amendments made by Finance Acts
decisions of Supreme Court
decisions of respective High Court
decisions of Income Tax Appellate Tribunals
Notifications and circulars issued by Central Board of Direct Taxes (CBDT)
Assessee
2 (7) “assessee” means a person by whom any tax is payable and includes—
• A person by whom any tax or any other sum of money (including interest and penalty) is payable under the Act • every person in respect of whom any proceeding under this Act has been taken either for the assessment of the amount of his income or of the income (or loss) of any other person in respect of whom he is assessable or of the amount of refund due to him or to such other person. or • every person who is deemed to be an assessee • every person who is deemed to be an assessee in default
Person
i) An individual ii) A Hindu Undivided Family (HUF) iii) A Company iv) A Firm or Limited Liability Partnership
v) An Association of persons (AOP) or Body of Individuals (BOI) vi) A local Authority vii) Every Artificial Judicial Person not falling under any of the above
Assessment year
- the period of twelve months commencing on the 1st day of April every year
Previous year
- the financial year immediately preceding the assessment year - in the case of a business or profession newly set up in a financial year, the previous year starts with period beginning with the date of setting up of the business or profession and ends with the said financial year
Charging of Tax
- Income of previous year chargeable to tax during assessment year - Income tax rates fixed by Finance Act - For computing Total Income, provisions of the Act as applicable on 1st April of the relevant Assessment Year will be applied (for procedural matters, provisions of the Act will be