Doing Business In India - A Legal Overview - Part 2

TAXATION

DIRECT TAXATION

INCOME TAX

Charge Of Income Tax:

Income tax is charged on the "total income" of every person (Resident or Non-Resident) received by him/it in the previous year. The term 'Previous Year' means the financial year immediately preceding the assessment year. The assessment year is the year beginning on the 1st day of April of a year and ending on the 31st day of March of the next year. This tax is levied under the Income Tax Act, 1961.

Categories Of Taxpayers:

The Income Tax Act recognizes seven categories of taxpayers (assessees), namely:

1. An individual
2. A Hindu undivided family