Dr.G.Karthika �Assistant Professor,�Department Of Commerce

Meaning of tax

The tax is a compulsory payment that has to be made by individual or other persons to central government, state government or local government. Tax is based on certain will establishment rules or criteria such as income earned, property owned or expenditure made.

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Direct and indirect tax

Direct tax is a payment directly made to the stable by the person who bears it.

Indirect tax is a tax which is paid by one person and burned by another person.

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Income tax act

The income tax act of 1961 has been in effect from the first day of April 1962 (sec 1). It contains 298 sec, sub sections, schedules etc. the income tax rules of 1962 was framed by central board ofDirect Taxes (CBDT)

Assessment year (sec 2(9)

Assessment year may be defined as a year in which the income tax of the previousyear is to be assessed. It is a period of twelve months starting from April 1 of every year and ending on March 31 of the next year.

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Previous year (sec 3)

For the purposes of this Act, the term “previous year” means that the

financial yearimmediately preceding the assessment year. ... Under Income Tax, the returns are filed by assesses after end of the year/ period during which earnings are made and that period

is called as previous year/ financial year.

Definition of 'Assessee'

Section 2(7) of Income Tax Act. As per S. 2(7) of the Income Tax Act, 1961, unless the context otherwise requires, the term “Assessee” means a person who is responsible for payment of any tax or any other sum of money under this Act, and includes

Person 2(31)

It includes an individual and Hindu Undivided Family (HUF), Company, Firm, Association of Person (AOP), Body of Individual (BOI) Local Authority & Artificial Juridical Persons.

Residential Status of an Individual

Incidence of Tax