2.  Income tax is an annual tax on income. The
Indian Tax Act (Section 4) provides that in
respect of the total income of the previous year
of every person, income tax shall be charged
for the corresponding assessment year at the
rates laid down by the Finance Act for that
assessment year. Section 14 of the Income tax
Act further provides that for the purpose of
charge of income tax and computation of total
income all income shall be classified under the
following heads of income:

3.  A. Salaries
 B. Income from house property
 C. Profits and gains of business or profession.
 D. Capital gains
 E. Income from other sources
 The total income from all the above heads of
income is calculated in accordance with the
provisions of the Act as they stand on the first
day of April of any assessment year

4.  In this booklet an attempt is being made to
discuss the various provisions relevant to the
salaried class of taxpayers as well as pensioners
and senior citizens.

5.  Section 139(1) of the Income-tax Act, 1961
provides that every person whose total income
during the previous year exceeded the
maximum amount not chargeable to tax shall
furnish a return of income. The Finance Act,
2003 has introduced Section 139(1B) which
provides for furnishing of return of income on
 computer readable media, such as floppy,
diskette, magnetic

6.  cartridge tape, CD- ROM etc., in accordance
with the e-filing scheme specified by the Board
in this regard.
 The return of income can be submitted in the
following manner:
 (i) a paper form;
 (ii) e-filing
 (iii) a bar-coded paper return.