Costing and Taxation · Ch 3 — Introduction to Taxation
Terms Introduced in the Chapter
Terms Introduced in the Chapter
This section collects, in one place, every term and exempt-income category introduced in this chapter, for quick re …
The financial year (1st April to 31st March) in which income is actually earned; for a business/profession newly set up mid-year, the shorter period from set-up …
The financial year immediately following the Previous Year, in which the Previous Year's income is assessed and taxed. E.g., income of PY 2025-26 …
Defined broadly to include an individual, a Hindu Undivided Family, a company, a firm (incl. LLP), an association of persons/body of individuals, a local authority, and every ot …
A person by whom tax or any other sum is payable under the Act, or in respect of whom a proceeding has been taken, or who is deemed an assessee/assessee-in-default. Every Assessee is a Person, but no …
The specific origin from which a particular item of income arises — e.g., a specific employer or a specific house property — several sources can fall und …
The five groups under which every item of income must be classified: Salaries; Income from House Property; Profits and Gains of Business or Profession; Capital Gain …
The aggregate of income computed under all five Heads, after clubbing and loss set-off/carry-forward, but BEFORE Chapter VI-A deduct …
Gross Total Income reduced by Chapter VI-A deductions — the final figure on which tax is actually computed for the rele …
A sum received by an individual as a member of a Hindu Undivided Family, out of the family's income, is exempt — the HUF has already been taxed on …
A partner's share in a firm's (or LLP's) total income is exempt in the partner's hands, since the firm/LLP has al …
Sums received under a life insurance policy, including bonus, are generally exempt in the recipient's hands, subject to conditions s …
Daily allowance received by a Member of Parliament or a Member of a State Legislature/Legislative Council is who …
A cash or in-kind award instituted by the Central/State Government (or an approved body) in the public interest is exempt; a private/promotion …
Income of a local authority (Panchayat, Municipality, District Board, Cantonment Board, etc.) under specified heads/activities is exempt, subject to …