Basic concepts of Income tax Act, 1961

Income Tax is a form of direct tax. Income tax has to be paid by entitled whose taxable income exceeds certain amount fixed by the government.

Assesment year:

assessment year refer to the period of 12 months commencing on the 1st day of April every year. For the year 19-20 the assessment year would be 2020-2021.

Previous year:

The previous year is the year I which the income us earned. The income earned in the previous year is taxed in the assessment year. The previous year us the financial year preceding the assessment year. For the assessment year 2020-2021, the previous year is 19-20.

Assessee:

Assessee means a person by whom any tax Or any other sum of money id payable under this Act and includes:

  1. Every person in respect of whom any proceedings under this act have been initiated for the assessment of this income or the income of any other person in respect of whom he is assessable Or loss sustained by him or by such other person or of the amount of refund due to him or to other such person.
  2. Every person who is deemed to be an assessee under any provision of this act
  3. Every person who is deemed to be an assessee in default under any provision of this act.

Person:

  1. An individual
  2. A hindu undivided family
  3. A company
  4. A form
  5. An association of person or body of individual
  6. A local authority
  7. Every artificial juridical person .