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...

Law of Contracts The law of contract is that branch of law which determines the circumstances in which promises made by the parties to a contract shall be legally binding in them. The law relating to contracts is contained in the Indian Contract Act, 1872 . The Act deals with (1) the general principles of the law of contracts and (2) some special contracts.   Definition: A contract is an agreement made between two or more parties which the law will enforce . Sec. 2(h) defines contract as an agreement enforceable by law . This definition is based on Pollock’s definition which is as follows: “Every agreement and promise enforceable at law is a contract.” Sir William Anson defines a contract as “a legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearances (abstaining from doing something) on the part of others.” According to Salmond , a contract is “an agreement creating and defining obligations between the parties.” ...

 Introduction Income tax is a very important direct tax. it is an important and most significant source of revenue of the government. the government deeds money to maintain law and order in the country; safeguard the security of the country from foreign powers and promote the welfare of the people. Who is liable to pay income tax Every person, whose taxable income for the previous financial year exceeds the minimum taxable limit is liable to pay to the central government income tax during the current financial year on the income of the previous financial year at the rates in force during the current financial year. Income Tax Act, 1961 has been brought into force with effect from 1st April, 1962. It applies to the whole of India. Since 1962 several amendments of far-reaching nature have been made in the Income Tax Act by the Union Budget every year, which also contains Finance Bill. After it is passed by both the Houses of Parliament, and receives the assent of the President of Ind...