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Q. What is a "previous year"?
A. The Financial Year in which the
income is earned is known as the previous year. Any financial year
begins from 1st of April and ends on subsequent 31st March. The
financial year beginning on 1st of April 1998 and ending on 31st
March 1999 is the previous year for the assessment year 1999-2000.
Q. What is an 'assessment year'?
A. The financial year following a
previous year is known as the assessment year .For example for the
previous year from 1st April 1998 to 31st March 1999, the assessment
year shall be the next financial year i.e. 1st April 1999 to 31st
March 2000.
Q. What is meant by an assessee?
A. Assessee means a person by whom
any tax or any other sum of money is payable under the Income Tax
Act, and includes -
a) every person in respect of whom
any proceeding under this Act has been taken for the assessment
of his income or of the income of any other person in respect of
whom he is assessable, or of the loss sustained by him or by such
other person, or of the amount of refund due to him or to such other
person;
b) every person who is deemed to
be an assessee under any provision of this Act
c) every person who is deemed to
be an assessee in default under any provision of this Act.
Q. Who is a "person " as defined under
the Income Tax Act?
A. Section 2(31) of the Income Tax
Act defines a person. The definition includes
1. An individual
2. A Hindu Undivided Family
3. A Company
4. A Firm
5. An Association of Persons or a
Body of Individuals whether incorporated or not.
6. A Local Authority &
7. Every artificial juridical person
not falling within any of the preceding categories.
Q. Who is an Assessing Officer (A.O.)?
A. A.O. is an abbreviation for Assessing
Office. It is defined in section 2(7A) of the Income Tax Act. Assessing
Officer means the Income Tax Officer, or the Assistant Commissioner
of Income Tax, or the Dy. Commissioner of Income Tax, or the Jt.
Commissioner of Income Tax , having jurisdiction over an assessee
The Assessing Officer makes the assessment and collects taxes under
the Act.
Q. What are 'heads of income'?
A. Under Indian law income or loss
is first assessed under a particular head of income in accordance
with the mode of computation laid down in the provisions relating
to that 'head of income' The total income assessable under the Act
is the aggregation of all heads of income, The head of income' are
:
1. Salaries
2. Income from House Property
3. Profits and Gains of Business or
Profession.
4. Capital Gains
5. Income from Other Sources.
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