The document defines key terms related to income tax in India such as assessee, assessment year, gross total income, agricultural income, tax rates, types of income exempt from tax, and types of leases. It also discusses venture capital, motives for mergers and acquisitions, and methods of business valuation including economic value added.

1. AssesseIncome Tax Act 1961 (Act no. 43) defines 'assesse' as a person by whom any tax or any other sum of money is payable<br />Assessment year Assessment year means the period of twelve months commencing on 1st April every year and ending on 31st March of the next year. Income of previous year of an assesse is taxed during the following assessment year at the rates prescribed by the relevant Finance Act.<br />Gross Total IncomeUnder the scheme of computation of total income under the Income Tax Act, the income falling under each head is to be computed as per the relevant provisions of the Act relating to computation of income under that head. The aggregate of income under each head is known as 'Gross Total Income'<br />What does the term Agricultural Income mean?<br />Agriculture income is exempt under the Indian Income Tax Act.<br />As per Income Tax Act income earned from any of the under given three sources meant Agricultural Income;<br />(I) any rent received from land which is used for agricultural purpose.<br />(ii) Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.<br />(iii) Income attributable to a farm house subject to the condition that building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house etc<br />TAX RATES FOR FINANCIAL YEAR 2010-2011<br />For Individual tax payers From Rs. 0 to Rs. 1, 60,000 - No tax will be chargedFrom Rs. 1, 60,001 to Rs. 3, 00,000 - 10% tax will be chargedFrom Rs. 3, 00,001 to Rs. 5, 00,000 - 20% tax will be chargedFrom Rs. 5, 00,000 and above - 30% tax will be charged<br />Income Tax Rates/Slabs Rate (%) Up to 1,60,000Up to 1,90,000 (for women)Up to 2,40,000 (for resident individual of 65 years or above) NIL <br />1,60,001 – 5,00,000 10 <br />5,00,001 – 8,00,000 20 <br />8,00,001 upwards 30<br />For Women tax payersFrom Rs. 0 to Rs. 1, 90,000 - No tax will be charged<br />INCOME EXEMPT FORM TAX <br />agriculture income

2. receipts by a member from a Hindu undivided family

3. share of profit from partnership firm

4. casual and non recurring income

5. leave travel concession

6. foreign allowance

7. amount paid on life insurance policies

8. educational scholar ships

9. daily allowances of members of parliament