Section 145A: Method of Accounting in certain cases under Income Tax Act, 1961
Provisions for Method of accounting under Income Tax Act, 1961 is stated under Section 145, which talks about applicability of Income Computation and Disclosure Standards as notified by Central Government.
In continuation to this section, there are certain cases where provision related with its Methods of Accounting are stated i.e., Section 145A. This section more specifically deals with Income computation under PGBP.
Section 145- Method of Accounting under Income Tax Act, 1961
Method of accounting enable us to compute that how Income specially Income computation under the head Profit and gains under Business or Profession (or more commonly known as “PGBP”) or Income from other sources would be computed.
Agricultural Income- All you need to know
The provision of Agricultural Income is stated in Section 10 (1), which provides that agricultural income is not to be included in the total income of the assessee. It mean that Agricultural Income will not be taxed under Income Tax.
Deemed Resident- Section 6(1A)
Deemed Resident concept has been introduced from Finance Act, 2020, where from Assessment Year 2021-22, an Indian citizen shall be deemed to be resident in India only if his Total Income, other than income from foreign sources, exceeds Rs 15 Lakhs during the previous year.
Previous Year vs Assessment Year
Previous Year and Assessment Year are two important terms that every tax payers should understand as both the terms are very important from Income Tax point of view.