Accountancy, asked by macshubham8910, 2 months ago

Income tax is charged on income of the previous year .do you fully agree in this statement .if not what are the explanation.

Answers

Answered by bhanvi116
6

Yes, Income of the previous year is taxable in the immediately following assessment year but there are a few exceptions when the income earned in previous year is taxable in the same year itself.

Exceptions:

1) Section 172: Income of non-resident from shipping business.

2) Section 174: Income of person leaving India either permanently or for a long period of time.

3) Section 174(a): Association of persons, body of individuals or artificial judicial person formed/established for a particular event/purpose for short duration.

4) Section 175: Income of a person trying to alienate his assets with an intention of avoiding tax payment.

5) Section 176: Income from a discontinued business.

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