User talk:MukeshKPoul

ITD Introduction: Every government, whether it is the Central government or a state government needs a lot of money in order to meet expenses for various purposes such as : defense, development, maintaining law and order, salaries of government employees, etc. This money, as required by the government, is collected from the people in the form of taxes such as: income-tax, sales-tax, gift-tax, wealth-tax, excise duty, etc. In this chapter, we shall confine our study to income-tax only.

Income-Tax (Personal Income-Tax) : It is the tax imposed by the Central government on the income of a person. "Every person, whose annual income exceeds a specified limit, is required by the law 'to pay a part of his/her income, known as income-tax, to the Central government. " The rates of income-tax and the laws relating to it are fixed by the government every year during the Budget Session of the Parliament of India.

Some Important Terms Related to Income-Tax :

1.	Assessee: `Assessee' means a person by whom income-tax or any other sum of money is payable under the Act. It includes every person in respect of whom any proceeding under the Act has been taken for the assessment of his/her income or loss.

2. Financial year and Assessment year : The income of a person in any year is assessed for income-tax during next year. For example, the income during the year 2005-06 will be assessed for income-tax during the year 2006- 07. Here, the year for which the income is taken into account is called the financial year and the year in which the income-tax is assessed and paid to the government is called the assessment year. Thus, for the financial year 2005- 06, the assessment year is 2006- 07.

a. The financial year commences on ist April and ends on 31st March next calendar year. e.g. The financial year Z005-06 commences on 1st April 2005 and ends on 31st March 2006.

b. F .Y. stands for financial year. A.Y. stands for assessment year.

3. Income-Tax Return : Every assessee is required to file every year (assessment year), a statement of income during the previous year (financial year) to the income-tax department on a prescribed form. This form, duly filled in, is called an income-tax return.