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TAXATION & TAX PLANNING-EF-09
History of Income Tax
The income tax was introduced in India for the first time in 1860 by British rulers. The period between 1860 to 1886 was a period of experiments in the context of income tax. The first income-tax act came into existence in 1886.In 1918 another Act was passed but it was replaced by Income-tax Act, 1922 and remained in existence till 31st March 1961
Present Act
On recommendation of Law Commission & Direct Taxes Enquiry Committee and in consultation with Law Ministry a bill passed in 1961.This Act came into force from 1st April 1962 in whole of the country. Income-tax Act, 1961is a comprehensive Act and consists of 298 sections, subsections.
Basic Concepts
Assessment Year
▪ It means the period starting from April 1 and ending on March 31 of the next year.
• For instance, the assessment year 2008-09 which commences on April 1, 2008, will end on March 31, 2009.
• Income of previous year of an assessee is taxed during the next following assessment year at the rats prescribed by the relevant Finance Act.
Assessee
• It 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 proceedings under this Act have been taken for the assessment of his income or of the income of any other person in respect of which he is assessable or loss suffered by him.
Types of Assessee
Ordinary Assessee: (i) It includes any person against whom some proceeding under this act are going on.(ii) any person who has sustained loss and has filed return of loss.(iii) any person who is entitled to refund of tax under this act.
Deemed Assessee: A person may not be liable only for his own income or loss but also on the income or loss of other person e.g., guardian of minor or lunatic, agent of a non-resident, executors of the property of a deceased person etc.
Assessee-in-default:: If a person fails to fulfill his statutory obligation....
History of Income Tax
The income tax was introduced in India for the first time in 1860 by British rulers. The period between 1860 to 1886 was a period of experiments in the context of income tax. The first income-tax act came into existence in 1886.In 1918 another Act was passed but it was replaced by Income-tax Act, 1922 and remained in existence till 31st March 1961
Present Act
On recommendation of Law Commission & Direct Taxes Enquiry Committee and in consultation with Law Ministry a bill passed in 1961.This Act came into force from 1st April 1962 in whole of the country. Income-tax Act, 1961is a comprehensive Act and consists of 298 sections, subsections.
Basic Concepts
Assessment Year
▪ It means the period starting from April 1 and ending on March 31 of the next year.
• For instance, the assessment year 2008-09 which commences on April 1, 2008, will end on March 31, 2009.
• Income of previous year of an assessee is taxed during the next following assessment year at the rats prescribed by the relevant Finance Act.
Assessee
• It 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 proceedings under this Act have been taken for the assessment of his income or of the income of any other person in respect of which he is assessable or loss suffered by him.
Types of Assessee
Ordinary Assessee: (i) It includes any person against whom some proceeding under this act are going on.(ii) any person who has sustained loss and has filed return of loss.(iii) any person who is entitled to refund of tax under this act.
Deemed Assessee: A person may not be liable only for his own income or loss but also on the income or loss of other person e.g., guardian of minor or lunatic, agent of a non-resident, executors of the property of a deceased person etc.
Assessee-in-default:: If a person fails to fulfill his statutory obligation....