Income Tax Definition Management

Definition under income tax act.

Income tax definition management. Income tax payable is one component necessary for calculating an organization s deferred tax liability. It is interesting to note that the proceeds of corporate tax are retained by the central government and are not shared with state governments. Income deemed to be received in india under income tax act. The government of india brought a draft statute called the direct taxes code intended to replace the income tax act 1961 and the wealth tax act 1957.

Gross total income gti section 80b 5. Abstract the aim of this study is to examine the question of earnings management and specifically how this relates to taxation. Tax planning and management the income tax act 1961 is the charging statute of income tax in india. The objective of stabilization implemented through tax policy government expenditure policy monetary policy and debt management is that of maintaining high employment and price stability.

The second objective income redistribution is meant to lessen inequalities in the distribution of income and wealth. Income tax is used to fund public services pay government. The portion of profits which can be affected by management accounting choices as calculated by. The amount of tax including tax deductible at source or payable in advance interest penalty fine or any other sum payable and the amount of refund due under the provisions of the income tax act shall be rounded off to the nearest multiple of rs.

Income tax payable is found under the current liabilities section of a company s balance sheet. Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. In order to determine whether there is a correlation between earnings management and taxation we investigate the discretionary accruals aspect of total accruals i e. 10 then if such part is.

Definition of company. In this act unless the context otherwise requires 1 agricultural income means a any rent or revenue derived from land which is used for agricultural purposes and is either assessed to land revenue in india or is subject to a local rate assessed and collected by officers of the government as such b any income derived from such land by. Section 7 incomes which accrue or arise in india or are deemed to accrue or arise in india section 9 income arising from business connection in india section 9 1 i assessment year section 2 9. 10 and for this purpose where such amount contains a part of rs.