The Indian Constitution has empowered only the Central
Government to levy and collect taxes. Every person whose total
income exceeds the maximum exemption limit shall be chargeable to
the income tax at the rate or rates prescribed in Income Tax Act.
Such income tax shall be paid on the total income of the previous
year in the relevant assessment year. But the total income of the
individual is determined on the basis of the residential status in
India.
Status of Resident or Non Resident
The income tax to be paid by individual is determined on the
basis of his residential status. An individual can be termed as a
"resident" if he stays for the prescribed period during
the previous year (1st April to 31st March)
either for
