INCOME TAX, LAW AND PRACTICE
(Section – A)
1. Who is an Assessee?
A person one who liable to pay a tax is known as Assessee.
Any person in respect of whom any tax proceeding as been taken for the assessment.
A) Of his own or other persons income.
B) Of his own or other persons loss
Any person who is deemed to be an assessee.
Any person who is deemed to be an assessee in default.
2. What is an Assessment year?
The period of twelve months commencing on the first day of April every year.
Example: 1st April 2023 – 31st March 2024
3. What is a previous year?
The period of twelve months immediately preceding to the assessment year.
Example: 1st April 2022 – 31st March 2023
4. What is Agriculture income?
Any rent or revenue derived from land which is situated in India is used for agriculture
purpose.
5. What is gross total income?
The aggregate income of an assessee computed under the five heads of income, after applying
provision and making adjustment of set off and carry forward of losses is called Gross Total
Income.
6. What is total income?
After deduction made under section 80C to 80U, from the gross total income is called as total
income.
7. Who is a person?
The term person includes an individual, covering male, female, major, minor, lunatics etc.,
A Hindu undivided family
A company
A firm
An association of person or a body of an individual
A local authority, and
Every artificial juridical (legal) person
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, 8. What is casual income?
Any receipt which is of a casual and non-recurring in nature is casual income. Wining from
lotteries, crossword puzzles, races including horse race, card game and game of other sorts, or
form gambling or betting of any form or nature are casual incomes.
9. Define the term business?
The term business means continuous production and distribution of goods and services with
aim of earning profits under uncertain market conditions.
10. Who is a non-resident?
A non-resident (NRI) an Indian citizen who stay aboard for employment/carrying on business
or vocation outside India or stays abroad for circumstance indicating an intension for an uncertain
duration of stay aboard is non-resident.
11. What is allowance?
An allowance is a cash payment to an employee on a regular basis, in addition to salary, to
meet certain expenses incurred by him in connection with the duties of his office, or to
compensate him for any expense which is owing to performance of his duty in particular
circumstance or at a particular place. It may be paid to him voluntarily or under a contract.
An allowance may be
fully taxable
fully exempt and
partly exempt
12. What are perquisites?
A perquisite is defined as ‘any casual emolument’, fee, or profit attached to an office or
position in advantage and benefits a person by going ‘into his pocket’. It may be granted to
an employee, whether present, past, and future, as a substitute for his regular remuneration
or in addition to it.
13. What is standard rent?
It is the maximum rent to be collected by the owner of the property from the tenant under
Rent Control Act.
14. What is a fair rental value?
Rental value is the fair market value of property while rented out in a lease. More generally, it
may be the consideration paid under the lease for the right to occupy, or the royalties or return
received by a lesser (landlord) under a license to real property.
15. What is meant by profession?
Occupation, practice, or vocation requiring mastery of a complex set of knowledge and skills
through formal education and/or practical experience. Every organized profession (accounting,
law, medicine, etc.) is governed by its respective professional body.
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(Section – A)
1. Who is an Assessee?
A person one who liable to pay a tax is known as Assessee.
Any person in respect of whom any tax proceeding as been taken for the assessment.
A) Of his own or other persons income.
B) Of his own or other persons loss
Any person who is deemed to be an assessee.
Any person who is deemed to be an assessee in default.
2. What is an Assessment year?
The period of twelve months commencing on the first day of April every year.
Example: 1st April 2023 – 31st March 2024
3. What is a previous year?
The period of twelve months immediately preceding to the assessment year.
Example: 1st April 2022 – 31st March 2023
4. What is Agriculture income?
Any rent or revenue derived from land which is situated in India is used for agriculture
purpose.
5. What is gross total income?
The aggregate income of an assessee computed under the five heads of income, after applying
provision and making adjustment of set off and carry forward of losses is called Gross Total
Income.
6. What is total income?
After deduction made under section 80C to 80U, from the gross total income is called as total
income.
7. Who is a person?
The term person includes an individual, covering male, female, major, minor, lunatics etc.,
A Hindu undivided family
A company
A firm
An association of person or a body of an individual
A local authority, and
Every artificial juridical (legal) person
1
, 8. What is casual income?
Any receipt which is of a casual and non-recurring in nature is casual income. Wining from
lotteries, crossword puzzles, races including horse race, card game and game of other sorts, or
form gambling or betting of any form or nature are casual incomes.
9. Define the term business?
The term business means continuous production and distribution of goods and services with
aim of earning profits under uncertain market conditions.
10. Who is a non-resident?
A non-resident (NRI) an Indian citizen who stay aboard for employment/carrying on business
or vocation outside India or stays abroad for circumstance indicating an intension for an uncertain
duration of stay aboard is non-resident.
11. What is allowance?
An allowance is a cash payment to an employee on a regular basis, in addition to salary, to
meet certain expenses incurred by him in connection with the duties of his office, or to
compensate him for any expense which is owing to performance of his duty in particular
circumstance or at a particular place. It may be paid to him voluntarily or under a contract.
An allowance may be
fully taxable
fully exempt and
partly exempt
12. What are perquisites?
A perquisite is defined as ‘any casual emolument’, fee, or profit attached to an office or
position in advantage and benefits a person by going ‘into his pocket’. It may be granted to
an employee, whether present, past, and future, as a substitute for his regular remuneration
or in addition to it.
13. What is standard rent?
It is the maximum rent to be collected by the owner of the property from the tenant under
Rent Control Act.
14. What is a fair rental value?
Rental value is the fair market value of property while rented out in a lease. More generally, it
may be the consideration paid under the lease for the right to occupy, or the royalties or return
received by a lesser (landlord) under a license to real property.
15. What is meant by profession?
Occupation, practice, or vocation requiring mastery of a complex set of knowledge and skills
through formal education and/or practical experience. Every organized profession (accounting,
law, medicine, etc.) is governed by its respective professional body.
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