Short title extent and commencement-Income Tax Act, 1961

1 minute, 48 seconds Read

Short title extent and commencement

CHAPTER – I PRELIMINARY

This Act may be called the Income-tax Act, 1961.

It Extend to The Whole of India

Came in to Force

Advertisements

It came into force on 1st April,1962.

Sections

It contains sections 1 to 298 and XIV schedules.

Changes

Short title extent and commencement

It undergoes changes every year with additions and deletions brought out by the Annual Finance Act passed by parliament and other legislations.

 

Section 2 Important Definitions

Income which is partially agricultural and partially from business .

7 . (1)In the case of income which is partially agricultural income as defined in section 2 and partially income chargeable to income-tax under the head “Profits and gains of business”, in determining that part which is chargeable to income-tax the market value of any agricultural produce which has been raised by the assessee or received by him as rent-in-kind and which has been utilised as a raw material in such business or the sale receipts of which are included in the accounts of the business shall be deducted, and no further deduction shall be made in respect of any expenditure incurred by the assessee as a cultivator or receiver of rent-in-kind.

(2) For the purposes of sub-rule (1) “market value” shall be deemed to be :—

(a) where agricultural produce is ordinarily sold in the market in its raw state, or after application to it of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render it fit to be taken to market, the value calculated according to the average price at which it has been so sold during the relevant previous year;

(b) where agricultural produce is not ordinarily sold in the market in its raw state or after application to it of any process aforesaid, the aggregate of—

(i) the expenses of cultivation;

(ii) the land revenue or rent paid for the area in which it was grown; and

(iii) such amount as the [Assessing Officer] finds, having regard to all the circumstances in each case, to represent a reasonable profit.

author

EduTaxTuber Team

We are here to help for every updates related to everything...👍📙👍📗

Similar Posts

Leave a Reply

Realme 10 Pro and 10 Pro+ Launched RBI Monetary Policy Highlights England vs Senegal: FIFA World Cup 2022 No Curfew in Mumbai: Section 144 Imposed to ensure Peace Elon Musk suspends Kanye West Twitter Account for inciting violence