Scope of Income Tax Law

        The law of income tax is contained in income-tax Act, 1961. During 1998-99, Income tax (Second Amdt.) Act, 1998 has made significant changes in the provisions of the Act. Recently major amendments have been made by the Finance Bill, 1999 (as passed by the Parliament).

    The Income Tax Act broadly covers - (i) Basis of charging income; (ii) Incomes exempt from income-tax;     (iii) Computation of income under various heads; (iv) Clubbing of Income; (v) Set off and Carry Forward of Losses; (vi) Permissible Deductions; (vii) Rebates and Reliefs; (viii) Double taxation relief; (ix) Determination of Tax in Certain Special cases; (x) Non-Residents (special provisions); (xi) Tax on Dividends distributed by domestic companies; (xii) Income tax authorities and their powers; (xiii) Survey, search and seizure; (xiv) Assessment procedure; (xv) Assessment of firms; (xvi) Collection and recovery of tax- TDS; (xvii) Payment of Advance Tax; (xviii) Refund; (xix) Advance Rulings; (xx) Appeal and Revision; (xxi) Acquisition of Immovable property; (xxii) Penalty; and (xxiii) Prosecution.

For implementing the various provisions of the Act, Income-tax Rules, 1962 have been framed which prescribe the procedures, time-limits, conditions, returns, forms, etc. The Rules have also undergone several important changes during the last year.

In the coming sections you will find the following details. You can click the link to jump directly to a topic.

      Persons Liable to Pay Income Tax

      Residential Status

      Income Tax terms

      Incomes included in Total income

      Incomes not Liable to Tax

      Heads of Income

      Set Off and Carry Forward

      Agricultural Income

      SAMMAN

      Permanent Account Number (PAN)