User:Gyaneshkumarg2001

                                                   INCOME TAX

INTRODUCTION

      AN INCOME TAX IS AN DIRECT TAX . IT IS A PROMINENT AND MOST SIGNIFICANT SOURCE OF REVENUE OF THE GOVERNMENT. THE GOVERNMENT NEEDS MONEY  TO MAINTAIN LAW AND ORDER IN THE COUNTRY, SAFEGUARD THE SECURITY OF THE COUNTRY FROM FOREIGN POWERS AND PROMOTE THE WELFARE OF THE PEOPLE . SINCE OUR GOVERNMENT IS WEDDED TO THE SOCIALISTIC PATTERN  OF SOCIETY IT IS THE FOREMOST DUTY OF THE GOVERNMENT  TO BRING OUT SUCH WELFARE AND DEVELOPING PROGRAMMED WHICH WILL BRIDGE THE GAP BETWEEN THE RICH  AND POOR. ALL THIS REQUIREMENT  MOBILIZATION OF FUNDS FROM VARIOUS SOURCES. THESE SOURCES MAY BE DIRECT OR INDIRECT . INCOME TAX , BEING A DIRECT TAX,IS AN IMPORTANT TOOL TO ACHIEVE BALANCE SOCIOLOGY- ECONOMIC GROWTH BY PROVIDING CONCESSIONS AND INCENTIVES IN INCOME TAX FOR VARIOUS DEVELOPMENTAL Purpose.

BY THE ᐅᐊ WHO IS A LIABLE TO PAY INCOME TAX.

  a person whose taxable income income for the previous financial year exceeds  the minimum  taxable limit is liable to pay income tax during the current financial year exceeds the minimum taxable limit to pay income tax during the financial year to year on the basis of income of the employees.

                                    BRIEF HISTORY OF INCOME TAX IN INDIA 

• IN INDIA , THIS TAX WAS INTRODUCED FOR THE FIRST TIME IN 1860, BY SIR JAMES WILSON IN ORDER TO MEET THE LOSSES SUSTAINED BY THE GOVERNMENT ON ACCOUNT OF THE MILITARY MUTINY OF 1857. •IN1886, A SEPARATE INCOME TAX ACT WAS PASSED. THE ACT REMAINED IN FORCE UP TO 1917, WITH VARIOUS AMENDMENTS FROM TIME TO TIME. •IN 1918, ANEW INCOME TAX ACT WAS PASSED AND AGAIN IT WAS REPLACED BY ANOTHER NEW ACT WHICH WAS PASSED IN 1992. THIS ACT REMAINED IN FORCE UP TO THE ASSESSMENT YEAR 1961-62 WITH NUMEROUS AMENDMENTS. •THE INCOME TAX ACT OF 1992 HAD BECOME VERY COMPLICATED ON ACCOUNT OF INNUMERABLE AMENDMENTS. THE GOVERNMENT OF INDIA , THEREFORE , REFEREED IT TO THE LAW COMMISSION IN 1956. • THE INCOME TAX ACT OF 1996 HAS BEEN BROUGHT INTO FORCE WITH EFFECT FROM 1ST APRIL 1962. •SINCE 1962 SEVERAL AMENDMENTS OF AFR REACHING NATURE HAVE BEEN MADE IN THE INCOME TAX ACT BY THE FINANCE ACT EVERY YEAR. •BESIDES THIS AMENDMENTS HAVE ALSO BEEN MADE BY VARIOUS AMENDMENT ACTS, FOR INSTANCE , TAXATION LAWS AMENDMENT ACT, 1984, DIRECT TAXES AMENDMENT ACT, 1987, DIRECT TAXES LAWS.

                                         CHARACTERISTICS OF INCOME TAX

♦♦♦DIRECT TAXES ♦♦♦ CENTRAL TAXES ♦♦♦ TAX ON TOTAL INCOME ♦♦♦ TAX-EXEMPTED LIMIT ♦♦♦ PROGRESSIVE TAX RATES ♦♦♦ SURCHARGE ♦♦♦ HEALTH AND EDUCATION CESS ♦♦♦ TAX BURDEN ♦♦♦ ADMINISTRATION ♦♦♦ ALLOCATION OF AMOUNT OF INCOME TAX