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Showing posts with the label Introduction to Income Tax Act 1961

Introduction to Income Tax Act 1961

In India, Income tax is a tax you pay to the government based on your income. The government uses this tax money for various purposes including public services, infrastructure development, defence spending and subsidies among other options. It is compulsory that one has to pay income tax if the income he or she earns crosses beyond a certain limit.   The Income Tax Act,enacted in 1961, is a statute that focuses on the different rules and regulations that govern taxation in the country. It provides for collecting, levying, administering and recovering income tax for the Indian government. The Income Tax Act,1961 contains a total of 23 chapters and 298 sections. These deal with various aspects of taxation in India.   During the month of February, every year, the Indian government presents a finance budget. There are various amendments to the Income Tax Act in the finance budget. This includes changes in tax slabs wherever applicable. For example, the Finance Minister announced tha

Definition and type of Persons

Person includes Individual, Hindu Undivided Family (HUF), a Company, a Firm Associations of Person Body of Individual Local authorities Artificial jurdiction person Individual Individual refers to a living person i.e. Man,woman, transgender,minor or major. Hindu Undivided Family (HUF) A Hindu Undivide Family  (HUF) is relationship created due to operation of hindu law. The head of HUF is karta and member are called coparceners.  Company A Company refers to artificial persons incorporate under Company Act 2013 or any other act. Firm Persons who have entered into partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name". Association of Person It means two or more persons join for a common purpose with a view to earned income. Body of Individual It means a conglomeration of individual who carry on

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