DEEKSHITH KUMAR PUTTUR

  BASIS OF CHARGE According to Sec. 4 of the Income Tax Act, Income-tax is charged on the income of an assessee earned in the previous year according to the rates fixed by the Finance Act. The tax liability is determined on the basis of the residence in India in the previous year. The residential status of an assessee need not be the same each year. The rules determining the Residential Status are not the same for all the assesses. An assessee may earn his income in India or outside India or at both places. Which income is assessable in India depends on the residential status of an asseseee. The scope of the total income of an assessee along with his residential status is determined with reference to his residence in India in the previous year.   Residence and citizenship are two different aspects. The incidence of tax has nothing to do with citizenship. An Indian may be non-resident and a foreigner may be resident for income tax purposes. The residence of a person may cha...

Permanent Account Number is a ten-digit number allotted by the Income Tax Department to an assesse who has applied for PAN in the Form No. 49A of the Act. The PAN is meant to identify the returns, tax payment challans and the correspondence received from the assesses and link these to their assessment records to facilitate quick disposal of their refund claims or assessments. The Department has authorized UTI Investor Services Ltd (UTICL) to manage IT PAN Services Centres in all cities of towns. Every person having the Total Income above exemptible limit and every business or profession whose total sales turnover or gross receipts exceed Rs. 5 Lakh should own or obtain PAN. It is mandatory for every assesse to quote the PAN in his IT Returns. The non-furnishing or furnishing incorrect PAN attracts a penalty of Rs. 10,000. Cases under which PAN is compulsory: PAN is compulsory for all assessee if (i) His income exceeds the exemption limit. (ii) He is liable to pay tax on behalf of...