Amazon

Shoes

Scope of total income on the basis of residential status as per Income Tax Act 1961

-

 The tax is levied on total income of a person. The total income is based upon the residential status of an assessee. Section 5 provides the scope of total income which varies on the basis of the status. 

1. Scope of total income of  'a Resident' [Section (1)]

    (a) Income received or deemed to be received in India during the relevant accounting year. The place and date of accrual is immaterial.

    (b) Income which accrues or arises or is deemed to accrue or arise in India during the relevant accounting year irrespective of the date and place of its receipts.

    (c) Income accruing during the relevant accounting year outside India whether it is brought or not in India during the year.


2. Scope of total income of  'Not Ordinarily Resident' [Section 5(1)]

    (a) Income received or deemed to be received in India during the relevant accounting year. The date and place of accrual is immaterial.

    (b) Income which arises or is deemed to accrue or arise in India during the relevant accounting year irrespective of the date and place of its receipts.

    (c) Income accruing or deemed to accrue or deemed to be received outside India during the relevant accounting year from business set up in and controlled from India.


3. Scope of total income of  'Non-Resident' [Section 5(2)]

    (a) Income received or deemed to be received in India during the relevant accounting year. The date and place of accrual is immaterial.

    (b) Income which accrues or arises or is deemed to accrue or arise in India during the relevant accounting year irrespective of the data and place of its receipts.

Comments

Post a Comment

Popular posts from this blog

Power and functions of Income Tax Authorities

-
THE POWER AND FUNCTIONS OF INCOME TAX AUTHORITIES: CBDT: 1. The board can declare any association whether incorporated or not and whether Indian, or Non Indian as company under the provision of Section 2(17) 2. The board has power to determine the jurisdiction of various authorities mentioned in this act. ( Section 118) 3. The board may issue directions for the exercise of powers and performance of the functions by all or any of these authorities. While issuing such direction the Board will keep in mind any of the following criteria such as: territorial area, persons or classes of person, incomes or classes of incomes and cases or classes of cases. (section 120(1) and (3) 4. The board may authorise by general or specific order, director general or director to perform the powers of any of the income tax authorities. (section 120) 5. The board may authorise any of the authorities to exercise its power concurrently with any pother authority. In case such notification is issued
Read more

CENTRAL BOARD OF DIRECT TAXES AND ITS POWERS

-
Central Board of Direct Taxes is the highest authority in the administrative set of the Income tax department. It was constituted under the provision of Central Board of Revenue Act 1963. The board functions under the control of Ministry of Finance, Government of India. Its jurisdiction is whole of India.  POWERS OF CBDT: The whole of income tax department is to be looked after by the board. It has to perform the function of administration, supervision and control of entire income tax structure in India. The orders and directions issued by the board are to be compared with all the subordinate authorities. The income tax Act provides following specific powers to the board: 1. The board can declare any association whether incorporated or not and whether Indian, or Non Indian as company under the provision of Section 2(17) 2. The board has power to determine the jurisdiction of various authorities mentioned in this act. ( Section 118) 3. The board may issue directions for th
Read more

Income Exempted under section 10 (U/S 10) of Income Tax Act 1961

-
Section 10 of Income tax Act is related to incomes which are totally exempted from tax, so in computing the total income of any previous year of any person, any income falling within any of the following clauses shall be exempted: 1. Agricultural Income [Section 10 (1)]:-    Agricultural income from land situated in India is fully exempted. 2. Any sum received by a Co-parcener from Hindu Undivided Family (H.U.F) [Section 10 (2)]:-    Any sum received by an individual as a member of a Hindu Undivided Family, where such sum has been paid out of the income of the family, or in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family is fully exempted. This is subject to the provision of section 64 (2) 3. Share of Income from the Firm [ Section 10 (2A)]:- In case of a person being a partner of a firm, which is separately assessed as such, his share in the total income of the firm shall be fully exempted. The share of partner in
Read more