Income Tax Return
The present law of income tax is contained in the Income Tax Act, 1961. The Income tax Act contains the provisions for determination of taxable income, determination of tax liability, procedure for assessment, appeal, penalties and prosecutions. It also lays down the powers and duties of various income tax authorities. • The Income Tax Law comprises The Income Tax Act 1961, Income Tax Rules 1962, Notifications and Circulars issued by Central Board of Direct Taxes (CBDT), Annual Finance Acts and Judicial pronouncements by Supreme Court and High Courts.
1.) Direct Tax 2.) Indirect Tax
Assessment Year:- Assessment year” means the period of twelve months commencing on 1st April every year and ending on 31st March of the next year. Income earned in a year is taxable in the next year. The year in which income is earned is known as previous year. Assessee:- Assessee means a person by whom any tax or any other sum of money (i.e. interest, penalty etc.) is payable under the Act and includes:
Income tax is levied on the total income of the previous year of every person. In general terms, the meaning of a person can be interpreted in a short term. Whereas, as per Section 2 (31), Person includes:
As per section 14 of Income Tax ,there are some kinds way of income . It Includes:-
Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax of 30% of profits, the individual,HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s incomes are grouped into blocks called tax brackets or tax slabs. And each tax slab has a different tax rate. In India, we have four tax brackets each with an increasing tax rate. i) Those taxpayers who are under 60 Years:- *An additional cess of 4% will be applicable to the tax amount calculated above. ii) Those taxpayers who are more than 60 Years but less than 80 Years ( senior Citizens):- iii.) Those taxpayers who are 80 Years Old or more ( super Senior Citizen):- iv.) Income tax slab rate for Domestic Companies:-
The interim budget for FY 2019-20 has introduced full tax rebate under section 87A for individuals earning a net taxable income upto Rs. 5 lakhs which means the maximum tax rebate limit under section 87A has been increased to Rs. 12,500 for the qualified taxpayers from Rs. 2,500
Note:- In case an individual meets the criteria mentioned above and has net income less than Rs.5 lakhs can claim for full tax rebate under section 87A from the upcoming assessment year onwards. However, it should be noted that only individuals can make the tax rebate claim under the section. Other taxpayer entities like HUF, firms, companies, NRIs cannot claim this benefit.
