introduction to income tax law
Basic concept
income tax is a tax on income, whether actual or deemed, in cash or in kind. According to Article 270 of the construction of India, levy, and collection of taxes of income (excluding agricultural income) is within the power of the central government. The net tax proceeds determined in a prescribed manner are, however, distributed between the center and the states as per the recommendation of the finance commission, which is appointed by the recommendation of the finance commission, which is appointed by the president of India in every five years.according to art 265 of the constitution of India. Levy and collection of any tax shall be under the authority of state law(a valid act of a components legislation). The income tax Act 1961 extends to the whole of India.
the main thing under the income tax act centers around the term "taxable income" and it shall be determined on the basis of the residential status of the assessed. Thus there is certain income under the income tax Act which are specifically excluded, the certain deduction are available which computing income under the different heads e.g. Salary, house property, profits and gains of business or profession, capital gains and income from other sources.moreover in computing taxable income one has to consider the deemed income.clubbing of incomes, setoff and carry forward of losses.once the taxable income is ascertained, the next step is to ascertain the income tax payable by the assesse.net tax payable is ascertained by dedicating the tax rebates, reliefs, advance tax paid and tax deducted at source from the tax so payable.
income tax is a tax on income, whether actual or deemed, in cash or in kind. According to Article 270 of the construction of India, levy, and collection of taxes of income (excluding agricultural income) is within the power of the central government. The net tax proceeds determined in a prescribed manner are, however, distributed between the center and the states as per the recommendation of the finance commission, which is appointed by the recommendation of the finance commission, which is appointed by the president of India in every five years.according to art 265 of the constitution of India. Levy and collection of any tax shall be under the authority of state law(a valid act of a components legislation). The income tax Act 1961 extends to the whole of India.
the main thing under the income tax act centers around the term "taxable income" and it shall be determined on the basis of the residential status of the assessed. Thus there is certain income under the income tax Act which are specifically excluded, the certain deduction are available which computing income under the different heads e.g. Salary, house property, profits and gains of business or profession, capital gains and income from other sources.moreover in computing taxable income one has to consider the deemed income.clubbing of incomes, setoff and carry forward of losses.once the taxable income is ascertained, the next step is to ascertain the income tax payable by the assesse.net tax payable is ascertained by dedicating the tax rebates, reliefs, advance tax paid and tax deducted at source from the tax so payable.
scope of income tax law
scope of income tax law
The history of income tax dates back to the 1860s when the British Government first levied income tax in India. thereafter the law amended in 1886, 1922, and 1961. The income tax act, 1961 as amended covers-
-The basis of charging income
-incomes exempt from income tax -computation of income under various heads
-clubbing of income
-setoff and carry forward of losses
-permissible deduction
- Rebates and relief
- Double taxation
-Determination of tax in certain special cases
-Nonresident
- Presumptive taxation
- Income tax authorities and their powers
-The survey, search and seizure
- assessment procedure
-assessment of individuals, firms, companies, etc
- collection and recovery of tax
-Payment of advance tax
- refund of tax
- Advance rulings
-Appeal and revision, settlement commission
-Acquisition of immovable property
-Penalty
- prosecution
The history of income tax dates back to the 1860s when the British Government first levied income tax in India. thereafter the law amended in 1886, 1922, and 1961. The income tax act, 1961 as amended covers-
-The basis of charging income
-incomes exempt from income tax -computation of income under various heads
-clubbing of income
-setoff and carry forward of losses
-permissible deduction
- Rebates and relief
- Double taxation
-Determination of tax in certain special cases
-Nonresident
- Presumptive taxation
- Income tax authorities and their powers
-The survey, search and seizure
- assessment procedure
-assessment of individuals, firms, companies, etc
- collection and recovery of tax
-Payment of advance tax
- refund of tax
- Advance rulings
-Appeal and revision, settlement commission
-Acquisition of immovable property
-Penalty
- prosecution
No comments:
Post a Comment