BY DIVYA SAINI

BBA-IST SEM
 Income tax is a tax charged on income
earned during the year. Under the Central
Government.

 Is INCOME TAX Direct Tax or Indirect tax?

 Income tax is a direct tax as person pays tax
from own pocket.
 Income is categorized into 5 major heads:
 INCOME FROM SALARIES- [Salary from job]
 INCOME FROM HOUSE PROPERTY – [Income
from house like rent]
 PROFITS AND GAINS OF BUSINESS AND
PROFESSIONS – [Business income also called
PGBP Income]
 INCOME FROM CAPITAL GAINS – [Profit from
sale of Assets like Property]
 INCOME FROM OTHER SOURCES – [All other
type of Income like Interest or dividend]
 A person who is liable to pay tax or have
taxable income for a financial year is known
as Assessee
 As per Income Tax 1961 there are three kinds
of Assessee:
 Normal Assessee
 Deemed Assessee
 Assessee in Default