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