Income Tax Person Definition

A person includes i an individual.

Income tax person definition. Section 7 incomes which accrue or arise in india or are deemed to accrue or arise in india section 9. The taxable person is thus assessed a tax on the value added to the product rather than the total value of the sale. The definition is inclusive i e. Previous year is the year in which income is earned.

Definition of income inder income tax section 2 24 income deemed to be received in india under income tax act. Business income taxes apply to corporations partnerships small. A tax paid by people on the money they earn as opposed to a tax that a company pays on its. Person section 2 31.

Income tax generally is computed as the product of a tax rate times taxable income. The definition of assessee leads us to the definition of person as the former is closely connected with the latter. Further also we under stand the term in more one by one 1. Personal income tax definition.

Definition of person u s 2 31 of the income tax act 1961. In general terms the meaning of a person can be interpreted in a short term. The term person is important from another point of view also viz the charge of income tax is on every person. Thus from the definition of the term person it can.

An income tax is a tax imposed on individuals or entities taxpayers that varies with respective income or profits taxable income. Income under income tax act. Now we begin with the understanding types of person as per income tax as person section 2 31 of income tax act which define this are the pillars of income tax act taxability based on the box under which you are falling. The definition of previous year is given under section 3 of the act.

Income tax is levied on the total income of the previous year of every person. Individual means natural person you and me i e. The term person includes. Personal income tax is a type of income tax that is levied on an individual s wages salaries and other types of income.

Person section 2 31. Huf company firm association of persons aop or body of individuals whether incorporated or not local authority and. Whereas as per section 2 31. A value added tax is a tax on the new value of a good or service at each stage of the production process.

For the purpose of charging income tax the term person under section 2 31 of income tax includes individual hindu undivided families hufs association of persons aops body of individuals bois firms llps companies local authority and any artificial juridical person.