Sage-Tips

What is the concept of block of assets?

Block of assets is a group of assets falling within a class of assets comprising of: Tangible assets, being building, machinery, plant or furniture, Intangible assets, being know how, patents, copyrights, trade-marks, licenses, franchises or any other business or commercial rights of similar nature.

What do you mean by term the income as per Income Tax Act 1961?

As per the Income Tax Act 1961, the total income of the previous year for a person who is a resident of India will include all his income irrespective of the source of that income which is either received or has accrued in India in the previous year.

When did Income Tax Act 1961 come into force?

1-4-1962
Income-tax Act, 1961 came into existence w.e.f. 1-4-1962.

Which tax is income tax?

Taxes are mainly of two types, direct taxes and indirect form of taxes. Tax levied directly on the income earned is called as direct tax, for example Income tax is a direct tax. The tax calculation is based on the income slab rates applicable during that financial year.

What is the concept of income?

Income is money that a person or a business receives in return for working, providing a product or service, or investing capital. A person’s income may also derive from a pension, a government benefit, or a gift. To an economist, income may be disposable or discretionary.

Who introduced income tax in India?

James Wilson
James Wilson, the Scotsman who created India’s first Budget, introduced the income tax act in 1860.

What is income tax income?

Incomes earned by you during the year are divided into five heads under the I-Tax Act. Income for salary include wages, pension, annuity, gratuity, fees, commission, profits, leave encashment, annual accretion and transferred balance in recognised Provident Fund (PF) and contribution to employees pension account.

Why do assets need to be depreciated?

Depreciation is one of those costs because assets that wear down eventually need to be replaced. Depreciation accounting helps you figure out how much value your assets lost during the year. That number needs to be listed on your P&L report, and subtracted from your revenue when calculating profit.