What is Income Tax Act 1961
- Blog|Income Tax|
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- 3 Min Read
- By Taxmann
- Last Updated on 7 April, 2021
For Income Tax Act 1961, previous year is defined as the financial year which immediately precedes the assessment year. In case the source of income is new or the business set up is new, previous year for that entity will start from the date of setting up of that business or profession or from the date when the source of income of this new existence starts and ends in the said financial year.
Exception to Previous Year:
Scope of Total income:
As per Income Tax Act 1961, the total income of previous year for a person who is resident of India will include all his income irrespective of source of that income which is either received or has accrued in India in previous year. However, if person is not an ordinarily resident in India as per Section 6 of Income Tax Act, 1961, income from the sources which accrues or arises for him outside India shall not be included in total income. In respect of non-residents any income which is received or arises in India is taxable in India.
Various Heads for Income under Income Tax Act 1961:
Type of Taxes:
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