UNIT – I Basic Concepts Tax

Meaning of tax

Basic Concepts Tax
Basic Concepts Tax

The tax may be a mandatory payment that has got to be created by individual or alternative persons to central government, authorities or government. Tax relies on sure can institution rules or criteria like financial gain earned , property owned or expenditure created. let’s see Basic Concepts Tax.

Direct and taxation

Direct tax may be a payment directly created to the stable by the one who bears it.
Indirect tax may be a tax that is paid by one person and burned by another person.

Income tax act

The revenue enhancement act of 1961 has been in impact from the primary day of Apr 1962 (sec 1). It contains 298 sec, sub sections, schedules etc. the revenue enhancement rules of 1962 was framed by central board ofDirect Taxes (CBDT)

Assessment year (sec 2(9)

Assessment year could also be outlined as a year within which the revenue enhancement of the previousyear is to be assessed. it’s a amount of twelve months ranging from Apr one of each year and ending on March thirty one of consequent year.

Previous year (sec 3)

For the needs of this Act, the term “previous year” implies that the monetary year immediately preceding the assessment year. … below revenue enhancement, the returns square measure filed by assesses when finish of the year/ amount throughout that earnings square measure created which amount is termed as previous year/ year.

Definition of ‘Assessee’

Section 2(7) of revenue enhancement Act. As per S. 2(7) of the revenue enhancement Act, 1961, unless the context otherwise needs, the term “Assessee” suggests that someone World Health Organization is to blame for payment of any tax or the other total of cash below this Act, and includes

Person 2(31)

It includes a personal and Hindu Undivided Family (HUF), Company, Firm, Association of Person (AOP), Body of Individual (BOI) authority & Artificial Juridical Persons.

AGRICULTURAL financial gain (SEC 2(1A))

In India, agricultural financial gain refers to financial gain earned or revenue derived from sources that embrace farming land, buildings on or known with associate agricultural land and business turn out from a husbandry land. Agricultural financial gain is outlined below section 2(1A) of the revenue enhancement Act, 1961.

Different types of Agricultural financial gain

Rent or Revenue Derived from land.
Income from Agriculture Operations.
Income from Farm House/Building hooked up to Agricultural Land.

Non-agricultural financial gain from land

  • Income from markets
  • Income from stone quarries
  • Income from mining royalties
  • Income from land used for storing agricultural turn out
  • Income from offer of water for irrigation purpose
  • Income from self-grown, grass and trees
  • Income from fisheries
  • Remuneration received as manager of associate agricultural farm
  • Income from interest on arrears of rent of agricultural land

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