detail knowledge of Income Tax

2. INDEX
OIntroduction
OIncome Tax Related Terms
OHeads of Income Tax
OHistory of Taxation in India
ORecent Income Tax Rates
OExemption of Income Tax
O Income Tax Return
OCareer in Income Tax
OCase Laws and Doctrine of
Precedent

5. INTRODUCTION
An income tax is a tax imposed on
individuals or entities (taxpayers) that varies
with respective income or profits (taxable
income). Income tax generally is computed
as the product of a tax rate times taxable
income. Taxation rates may vary by type or
characteristics of the taxpayer

6. INCOME TAX RELATED TERMS
OASSESSEE.
OPREVIOUS YEAR.
OASSESSMENT YEAR.
OPERSON.
OGROSS TOTAL INCOME
OTOTAL INCOME

8. History of Taxation in India
O 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. In 1918, a new income tax was passed and again it
was replaced by another new act which was passed in
1922.This Act remained in force up to the assessment year
1961-62 with numerous amendments.
In consultation with the Ministry of Law finally the
Income Tax Act, 1961 was passed. The Income Tax Act
1961 has been brought into force with 1 April 1962. It
applies to the whole of India and Sikkim (including Jammu
and Kashmir). Since 1962 several amendments of far-
reaching nature have been made in the Income Tax Act by
the Union Budget every year.

10. Exemption of Income Tax
O House Rent Allowance(Section 10)
O Employee provident fund(Section 80C)
O Medical Insurance Deduction(Section 80D)
O Education Loan (Section 80E)
O Deduction of Donation(Section 80G)
O Deduction on House Rent Paid(Section80GG)
O Saving Account Interest Deduction(Section
80TTA)
O Deduction for Disabled (Section 80U)

11. Income Tax Returns
O ITR 1:For Individuals having Income from Salaries, one house
property, other sources (Interest etc.) and having total income
upto Rs.50 lakh.
O ITR 2:For Individuals and HUFs not carrying out business or
profession under any proprietorship.
O ITR 3:For individuals and HUFs having income from a
proprietary business or profession.
O ITR 4:For presumptive income from Business & Profession.
O ITR 5:For persons other than,- (i) individual, (ii) HUF, (iii)
company and (iv) person filing Form ITR-7.
O ITR 6:For Companies other than companies claiming
exemption under section 11
O ITR 7:For persons including companies required to furnish
return under sections 139(4A) or 139(4B) or 139(4C) or
139(4D) or 139(4E) or 139(4F):

12. Career in Income Tax
OProsecutor(Lawyer)
OTax Professional(tax accountants,tax
analysts,tax advisors,Income tax consultants)
OIndian Revenue Service (IRS)
OTax Assistants

13. Case Laws and Doctrine of Precedents
O Case laws are the decisions of the various Income-
tax Appellate Tribunals(ITAT) and the High
Courts(HC) and the Supreme Court(SC).
O Decisions of the SC are binding on all lower Courts
and tax authorities in India.
O HC decisions are binding only in the states which
within the jurisdiction of that particular High Court.
O Decisions of one HC has persuasive powers over
other HCs when decision similar issues.
O ITAT can be a single member bench(SMC) or a two
member bench or a Special Bench or a Third
Member Bench.