gst income tax basic concepts
INCOME TAX - BASIC CONCEPTS -
SHORT NOTES (AFTER GST)
(As amended by the Finance Act, 2017) Short Notes on Basic Concepts
TAX –Tax is a fee charged by a Government on a product, income or activity. There are TWO types of taxes – Direct Taxes and Indirect Taxes.
INCOME TAX: It is a tax on Income.
CHARGING (SEC.4): Every PERSON whose TOTAL INCOME of the PREVIOUS YEAR exceeds the BASIC EXEMPTION LIMIT is an ASSESSEE and chargeable to income tax at the RATES prescribed in the FINANCE ACT for the relevant ASSESSMENT YEAR.
“Assessee” means a person by whom any tax or any other sum of money is payable under Income Tax Act, 1961, is called an Assessee.
In addition, it includes –
- Every person in respect of whom any proceeding under this Act has been taken for the assessment of
- his income; or
- Assessment of fringe benefits; or
- the income of any other person in respect of which he is assessable; or
- the loss sustained by him or by such other person; or
- the amount of refund due to him or by such other person.
- Every person who is deemed to be an assessee under any provision of this Act;
- Every person who is deemed to be an assessee-in-default under any provision of this Act.
Person: A person includes–
An Individual, (HUF), (AOP), Body of Individuals (BOI), a Firm &LLP, a Company, Local Authorities and Artificial Juridical Person etc.
Previous year (P.Y.): Previous year is the Financial Year immediately preceding the assessment year i.e., it is the financial year ending on 31st March, in which the income has accrued/received.
Assessment Year (A.Y.): means the Period of 12 months commencing on the
1st April every year. F.Y. in which you pay the tax is called A.Y.
Financial Year (F.Y.): commences on 1st April and ends on 31st March- (12 Months).
COMPUTATION OF TOTAL INCOME
SLAB RATES APPLICABLE FOR A.Y: 2018-19 ARE AS FOLLOWS:
Individual/HUF/AOP/BOI/Artificial Juridical Person: