Income Tax

INCOME TAX

 Income tax is a direct tax . It is computed on

the total income earned by a person during a
previous year.

 It mean tax on income earned by a person

from any source of income.
Feature of income tax

 Income tax is a direct tax.

 Income tax is central tax.
 Income tax is compute upon total income of
previous year.
 Exempted limit of income .
 Income tax is payable by every Assessee .
 Income tax is paid in current assessment year.
 Income tax is progressive tax.
 Income tax is various slab.
History of income tax in india

Pre independence Post independence

Origin of income tax 1860 Income tax act 1961

Income tax act 1886
Income tax act 1918
Income tax act 1922
 Income tax was introduced for the first time in
1860. This tax was imposed by sir james
wilson in ore to meet the losses sustained by
government in 1857.
Income tax act 1961

 Income tax act 1961 came into force with

effect from 1st april 1962. this act is applicable
in whole india.
Types of income

 Income from salary

 Income from house property
 Income from business profession
 Income from capital gain
 Income from other source.