Chapter: 1 Income Tax Procedures

Income Tax Procedures

Objectives:

After going through this unit, you will be able to


• Know the meaning of some common terms

• Understand the rights and duties of each tax payer

• Know the legal significance of tax deduction at source

• Penalties and prosecution for tax evasion.

Introduction

Income Tax Act. 1961 is a revenue law and contains the provisions for determination of taxable income, determination of tax liability, procedure for assessment, appeals, penalties and prosecutions. It also lays down the powers and duties of various Income Tax Authorities.

Amendments are carried out in the Income Tax from time to time. This is usually done every year when budget is presented before the parliament by the Finance Minister. One of the most of the important components of the budget is the Finance bill which contains various amendments which are sought to be made in the areas of direct and indirect taxes The finance bill also mentions the rates e.g. Income Tax and other taxes.