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Showing posts from January, 2021

INCOME TAX LAWS AND PRACTICE

  Scheme of Taxation Every person, whose total income of the previous year exceeds the maximum amount which is not chargeable to income tax, is an assessee and chargeable to income-tax in the assessment year at the rates or rates prescribed in the Finance Act/Income-Tax Act   for that relevant year. However, his/her total income shall be determined on the basis of his/her residential status in India. All the notifications, circulars and clarifications issued from time to time by the Central Board of Direct Taxation (CBDT) . In other words, Income-Tax levied in India in the following manner: Income earned by every person is chargeable to income-tax provided it exceeds the maximum amount which is not chargeable to tax i.e. it exceeds the amount maximum exemption limit. It is charged on the total income of the previous year but it is taxable in the next following assessment year at the rates applicable to such assessment year. However, there are certain exceptions to this rule.