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TAX IS A COMPULSORY CONTRIBUTION BY PEOPLE IN GENERAL TOWARDS COMMON PUBLIC EXPENDITURE

TAX IS A COMPULSORY CONTRIBUTION BY PEOPLE IN GENERAL TOWARDS COMMON PUBLIC EXPENDITURE. BASIC PHYLOSOPHY- IS TO REMOVE INCOME INEQUALITY AMONG THE SOCIAL UNIT. TAX AT A GLANCE. GOVERNMENT(REPRESENTATIVE OF PEOPLE) NEEDS FUND FOR M AXIMUM SOCIAL WELFARE

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TAX IS A COMPULSORY CONTRIBUTION BY PEOPLE IN GENERAL TOWARDS COMMON PUBLIC EXPENDITURE

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  1. TAX IS A COMPULSORY CONTRIBUTION BY PEOPLE IN GENERAL TOWARDS COMMON PUBLIC EXPENDITURE BASIC PHYLOSOPHY- IS TO REMOVE INCOME INEQUALITY AMONG THE SOCIAL UNIT

  2. TAX AT A GLANCE GOVERNMENT(REPRESENTATIVE OF PEOPLE) NEEDS FUND FOR M AXIMUM SOCIAL WELFARE ( CREATING INFRASTRUCTURE FACILITY, EMPLOYMENT OPPORTUNITY, HEALTH DEVELOPMENT ETC.) NEEDS SOURCES OF FUND TAX – ONE SUCH SOURCE

  3. TYPES OF TAXES TAXES ARE OF TWO TYPES • DIRECT TAXES: ARE THOSE TAXES THE BURDEN OF WHICH CANNOT BE SHIFTED • INDIRECT TAXES: ARE THOSE TAXES THE BURDEN OF WHICH CAN BE SHIFTED

  4. READABLE DOCUMENTS INCOME TAX ACT, 1961 INCOME TAX RULE, 1962 RELEVANT FINANCE ACT

  5. FEATURES OF INCOME TAX: • Income tax is an annual tax • It is imposed on every assessee • It is imposed on total income earned by an assessee • It is imposed on the income of the Previous Year • It is assessed to tax in the next following Assessment Year

  6. TERMINOLOGY DEFINED ASSESSEE-Sec 2(7)- Assessee means a person who is liable to pay tax or any other sum of money under the income tax act and includes • every person who is liable to pay tax or other person for whom he is assessable • every person who is a representative assessee • every person who is an assessee in default. PERSON-Sec 2(31)-person includes • An individual • An H.U.F.

  7. ( c) A joint stock company (d) A partnership firm (e) An association of person or Body of individual (f) A local authority (g) An artificial juridical person. PREVIOUS YEAR – SEC3- It is a period of twelve months just preceding the Assessment Year starting from 1st day of april and ending on next 31st March. PREVIOUS YEAR OF A NEWLY SET UP BUSINESS OR PROFESSION OR A NEW SOURCE OF INCOME DURING THE P.Y. In case of a newly set up business or profession or a new source of income coming into existence during the Previous Year the first previous year will be the period starting from the date when the new business or profession is set up or the new source of income comes into existence

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