Question

Is a right to take equal tax from every person?​

Answer 1

Explanation:

yes it is right...............

Answer 2

The Preamble of our Constitution declares India as a Republic nation, meaning that government exercises its power according to the rule of law. The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Centre and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law". Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature.

Dealing specifically with Income-tax law, authority to levy and collect tax on income is vested with the Centre by virtue of Entry 82 of the Seventh Schedule in the Constitution and in consequence thereof, Income-tax Act, 1961 (‘the Act’) has been enacted. Section 4 of the Act is charging section and the same reads as under:

“Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person”

Thus, as per section 4, tax is to be levied on the total income of every person. Further, total income, as defined in section 2(45), is to be computed as per the provisions of the Act.

Generally, income is taxable in the hands of the person to whom it belongs i.e. the owner of the income. However, there are exceptions given in the Act, wherein though the income may not belong to a person, but such income is taxable in the hands of such person. Such exceptions are given, in Chapter V of the Act which reads as ‘Income of other persons, included in assessee’s total income’, consisting of section 60 to 64. Thus, baring for few exceptions as given above, the general principle is that the income is to be taxed in the hands of the person to whom it belongs.

offering income to tax, when the same may not be taxable in his hands.