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Scope of Income Tax Basis of Charge Concept of Income 2nd July 2012 CA Harish Motiwala
Scope of Income Tax Basis of Charge Concept of Income 2nd July 2012 CA Harish Motiwala
Basis of charge
H. N. MOTIWALLA 1
SCOPE OF INCOME TAX
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• The Income tax Act 1961 replaces the Indian Income tax Act, 1922
• The objects of the revision was to simplify the income tax laws
• To simplify the Income tax Act, 1961, Direct Tax Code is offing
• Applicable to whole of India.
• S. 2(25A) of the Act defines India.
• Includes all States, Union Territories, Territorial waters and air space
above it territory and territorial waters.
• Consists of Twenty three chapters – 298 sections and 14 schedules.
• S. 2 defines 48 definitions.
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BASIS OF CHARGE
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CONTD.
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• “Person” includes (i) an Individual (ii) a HUF (iii) a company (iv) a firm (v) an
AOP/BOI (vi) a local authority and (vii) every artificial judicial person.
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CONCEPT OF TOTAL INCOME
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SCOPE OF TOTAL INCOME (S. 5)
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CONTD…..
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• In case of non-resident.
i) Income is received or deemed to be received in India.
ii) Accrues or arises or deemed to accrue or arise in India
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CONTD …..
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CRITERIA FOR DECIDING RESIDENTIAL STATUS
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But any person, being citizen of India, who leaves India in any previous year
as a member of crew of an Indian ship or for the purpose of employment
outside India the period of 182 days instead of 60 days to be considered
or
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CONTD…..
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• For HUF/Firm/AOP/BOI
Said to be resident, when control and management of its affairs is situated
either wholly or partly in India.
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CONTD…..
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CONTD…..
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CONTD…..
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- “Through” shall mean & include “by means of” “in consequence of” or
“by reason of” [Expl. 4].
- Business of which all the operations are not carried out in India – only
such part of income as is attributable to the operations carried out in
India [Expl. 1(a)]
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CONTD…..
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CONTD…..
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THANK YOU
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