Income Tax – Introduction

 

Tax 

1. Direct Tax

a. Income Tax

b. Tax on Undisclosed Foreign Income

2. Indirect Tax 

a. G.S.T

b. Custom Duty

1. Direct Taxes: If tax levied directly on the income or wealth of a person, then 

it is a direct tax e.g. Income Tax

2. Indirect Taxes: If tax is levied on the price of a goods or services, then it is 

an indirect tax e.g. GST or custom duty, in the case of indirect taxes, the person paying the tax passes on the incidence to another person.

Income tax Law

Components of income tax law

•  Income tax Act
• Annual finance Act
• Legal Decisions of court
• Income tax Rules
• Circulars/ Notifications

• Income Tax Act, 1961

• It comes into force on 1st April 1962.
• It contains 298 sections and XIV schedules
• A section may have sub-section, clauses and sub-clauses.
• A section may have also have provision and explanations
• The Income Tax Act, 1961 Undergoes change every year with new additions 
• brought by the annual finance act passes by parliaments.