INCOME TAX ACT:
The Central Government has been empowered by Entry 82 of the Union List of Schedule VII of the Constitution of India to levy tax on all income other than agricultural income (subject to Section 10(1)).[1] The Income Tax Law comprises The Income Tax Act 1961, Income Tax Rules 1962, Notifications and Circulars issued by Central Board of Direct Taxes (CBDT), Annual Finance Acts and Judicial pronouncements by Supreme Court and High Courts.The government of India imposes an income tax on taxable income of all persons including individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by CBDT and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
There are two types of taxes in India- Direct Tax and Indirect Tax.
In direct tax, burden falls directly on the taxpayer. Examples of direct taxes are: income tax, wealth tax, etc.
Residence Rules
Basic Condition : Sec. 6 (1)
1st Condition: 182 days or more during Previous Year (OR)
2nd condition: 60 days or more during Previous Year and 365 days or more during preceding four Previous Year.
Exception to 2nd condition:
(a) Indian citizen leaves India for employment abroad during Previous Year.
(b) India citizen who is working on Indian ship leaves India during Previous Year.
(c) Indian citizen or Person of Indian Origin coming to India on a visit during Previous Year.
Additional condition : Sec. 6 (6)
1st Condition : 730 days or more in preceding 7 Previous Year (and)
2nd Condition : Resident in 2 out of preceding 10 Previous Year.