Know your Income Tax Slab for Year 2022-23
Income tax in India is payable on slab basis and is applicable in case of Individual, Hindu Undivided Family (HUF), Association of Person (AOP), Body of Individual (BOI) and Artificial Juridical Person (AJP).
Method of Accounting in certain cases: Section 145A
Method of Accounting in certain cases: Section 145A: There are certain cases where accounting treatment will be done basis ICDS
Various measures taken by Government contribute to increase in tax collection
Recently, Ministry of Finance published various measures taken by the Government which contributes to the increase in Tax collections.
These figures reflects recovery of economy post COVID-19 and Government highlights better compliances due to various measures have resulted in increase in tax collections
Income- What does it mean in Income Tax
Income Tax is levied on the Income earned by any person during the relevant Financial year. Hence, it is very important to understand what exactly includes in Income under this act.
The word “Income” has a widest meaning and it must be given its natural and grammatical meaning. The Definition of Income is inclusive in nature as it starts with “Income Include”.
The Purpose of legislation is to keep the scope of Income very wide, it means, that it also includes receipts which did not falls into any of the above clauses but might be taxable considering it partook the nature of income.
Rules of Interpretation of Income Tax Act, 1961
The Provisions of Income Tax Act, 1961 should be followed by every taxpayer, however, there is a certain situation where provisions are not very clear and sometimes don’t cover such situations as Lawmakers are not always very efficient to cover all the situations and cases.
In such a case, rules of interpretation come into the picture. These rules are the principles that help in the interpretation of the law. The basic objective behind these rules is to ascertain the intention of the lawmakers. These rules are not static and they keep on evolving.
Sometimes, there may be a situation, where two or more rules of interpretation are applicable. In such a case, the court will decide the most appropriate rule of interpretation considering the facts of the case.