Accountancy, asked by macshubham8910, 17 days 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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