short notes by 19E2179 Ayush D Chabria https://padlet.com/19e2179/ipk5c6wulpdxtme9 assestment year, previous year, gross total income, total income, pan en-us 2021-09-14 07:14:02 UTC 2021-09-14 07:18:52 UTC hello@padlet.com Person includes :an Individual; a Hindu Undivided Family (HUF) ;a Company; a Firm an association of persons or a body of individuals, whether incorporated or not; a local authority; and every artificial juridical person not falling within any of the preceding sub-clauses. Association of Persons or Body of Individuals or a Local authority or Artificial Juridical Persons shall be deemed to be a person whether or not, such persons are formed or established or incorporated with the object of deriving profits or gains or income. 19e2179 https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738647633 2021-09-14 07:15:55 UTC https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738647633 The assessment year (AY) is the year that comes after the FY. This is the time in which the income earned during FY is assessed and taxed. Both FY and AY start on 1 April and end on 31 March. For instance, FY 2019-20 and AY 2020-21 are one and the same. 19e2179 https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738649441 2021-09-14 07:16:42 UTC https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738649441 As per the Income Tax law the income earned in current year is taxable in the next year. The year in which income is earned is known as the previous year.In layman language the current financial year is known as the previous year. The financial year starts from 1st April and end on 31st March of the next year. For Instance, for the salary income earned from 1 April 2017 - 31st March 2018 .The previous year would be 2017-18.All the assessee’s are required to follow the financial year( April 1 to March 31) as previous year for all types of incomes. Incase, of a newly set-up business/profession or first job then your first previous year will be less than 12 months. Though from subsequent years your previous year will always be your financial year.Remember your previous year can never exceed 12 months. 19e2179 https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738651350 2021-09-14 07:17:24 UTC https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738651350 Gross income for an individual—also known as gross pay when it's on a paycheck —is the individual's total pay from their employer before taxes or other deductions. This includes income from all sources and is not limited to income received in cash; it also includes property or services received. 19e2179 https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738651900 2021-09-14 07:17:41 UTC https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738651900 Total Income is defined under Section 2(45) with the scope defined by Section 5 of the Income Tax Act, 1961If you are an Indian resident in the previous year, any income received, accrued or deemed to be received by you will be accounted forIf you are not ordinarily resident in the previous year, incomes arising out of India will be included only if they are from a business controlled or performed from IndiaIn the case of non-residents (NRI), only incomes arising or accruing in India will be countedTotal Income is arrived by deducting all eligible deductions from “Gross Total Income”Your tax liability will be estimated on the Total Income. In simple terms, you pay tax on your Total Income. 19e2179 https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738653409 2021-09-14 07:18:24 UTC https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738653409 Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any "person" who applies for it or to whom the department allots the number without an application. PAN, thus, acts as an identifier for the "person" with the tax department. 19e2179 https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738654312 2021-09-14 07:18:52 UTC https://padlet.com/19e2179/ipk5c6wulpdxtme9/wish/1738654312