The conditions under which income tax is levied vary depending on the individual’s or entity’s income, residency status, and other factoRS. Some general conditions that apply to income tax in various jurisdictions include:

1. Income Threshold: Individuals and entities are only liable to income tax if their total income exceeds a certain threshold. This threshold varies depending on the jurisdiction and may be adjusted annually or periodically.
2. Taxable Income: Not all income is considered taxable. Certain types of income, such as gifts, inheritances, and certain types of government benefits, may be exempt from income tax. Additionally, deductions and exemptions may be applied to reduce the taxable income amount.
3. Tax Rates: Income tax rates are typically progressive, meaning that higher income earners pay a higher percentage of their income in taxes. Tax rates may also vary depending on the individual’s or entity’s filing status, residency status, and other factoRS.
4. Filing Requirements: Individuals and entities are typically required to file an income tax return if their taxable income exceeds the threshold. The deadline for filing income tax returns varies depending on the jurisdiction and may be extended under certain circumstances.
5. Payment of Taxes: Income taxes are typically due on the date the tax return is filed or within a specified period after the filing date. Late payment of taxes may result in penalties and interest charges.
6. Tax Residency: An individual’s or entity’s tax residency status determines which jurisdiction’s tax laws apply to their income. Tax residency is typically based on factors such as domicile, permanent home, and physical presence in a jurisdiction.
7. Foreign Income: Individuals and entities may be liable to taxes on their worldwide income, regardless of where the income is earned. This may involve filing income tax returns in multiple jurisdictions.
8. Tax Deductions and Exemptions: Various deductions and exemptions may be available to reduce the taxable income amount. These may include deductions for business expenses, charitable contributions, healthcare costs, and certain personal expenses.
9. Tax Credits: Tax credits are reductions in the amount of tax owed, unlike deductions that reduce taxable income. Tax credits may be available for various reasons, such as education expenses, child care costs, and energy-efficient home improvements.
10. Tax Withholding: Employers, banks, and other entities may be required to withhold income taxes from certain types of income, such as wages, salaries, and interest payments. This ensures that taxes are paid throughout the year, rather than in one lump sum at the time of filing a tax return.

EXAMPLES

India is a vast and diverse country with a wide range of climatic conditions, which has a significant impact on the health of its population. Some of the most common health conditions in India are:

• Cardiovascular diseases (CVDs): CVDs are the leading cause of death in India, accounting for over 25% of all deaths. They are caused by a build-up of plaque in the arteries, which can lead to heart attacks, strokes, and other serious complications.
• Respiratory diseases: Respiratory diseases are the second leading cause of death in India, accounting for over 20% of all deaths. They are caused by a variety of factors, including air pollution, smoking, and infections.
• Diarrheal diseases: Diarrheal diseases are the third leading cause of death in India, accounting for over 10% of all deaths. They are caused by a variety of pathogens, including viruses, bacteria, and parasites.
• Maternal and child health: Maternal and child health is a major concern in India. The country has one of the highest maternal mortality rates in the world, and child mortality rates are also high.
• Non-communicable diseases (NCDs): NCDs are on the rise in India, and they are now a major public health concern. They include conditions such as diabetes, cancer, and chronic obstructive pulmonary disease (COPD).

In addition to these common health conditions, there are a number of conditions that are specific to certain states in India. For example, malaria is a major problem in some of the eastern states, while dengue fever is more common in the southern states.

Here are some examples of conditions with specific states in India:

• Malaria: Malaria is a mosquito-borne disease that is common in some of the eastern states of India, such as Odisha, Chhattisgarh, and Jharkhand.
• Dengue fever: Dengue fever is another mosquito-borne disease that is more common in the southern states of India, such as Kerala, Tamil Nadu, and Karnataka.
• Japanese encephalitis (JE): JE is a viral disease that is transmitted by mosquitoes. It is more common in some of the northern states of India, such as Uttar Pradesh, Bihar, and West Bengal.
• Kala-azar (leishmaniasis): Kala-azar is a parasitic disease that is transmitted by sandflies. It is more common in some of the eastern states of India, such as Bihar, West Bengal, and Jharkhand.
• Leprosy: Leprosy is a chronic bacterial infection that can affect the skin, nerves, and eyes. It is more common in some of the eastern states of India, such as Bihar, West Bengal, and Odisha.

FAQ QUESTIONS

General

• What is income tax? Income tax is a tax levied on an individual’s or company’s taxable income. The taxable income is the gross income minus any allowable deductions and exemptions.
• Who is liable to pay income tax? Resident individuals and companies are liable to pay income tax on their worldwide income. Non-resident individuals and companies are liable to pay income tax on their income that arises in India.
• What are the different rates of income tax? The rates of income tax vary depending on the taxpayer’s income and residential status. For individual taxpayers, the rates range from 5% to 30%. For companies, the rate is a flat 30%.
• What are the deductions and exemptions available under income tax? There are a number of deductions and exemptions available under income tax. These include deductions for medical expenses, education expenses, charitable donations, and certain investments. There are also exemptions for certain types of income, such as agricultural income and income from lottery winnings.

Filing of Income Tax Returns

• Who is required to file an income tax return? All individuals and companies with a taxable income are required to file an income tax return.
• When is the due date for filing an income tax return? The due date for filing an income tax return depends on the taxpayer’s income and residential status. For individual taxpayers, the due date is generally July 31st of the following financial year. For companies, the due date is generally October 31st of the following financial year.
• How can I file an income tax return? Income tax returns can be filed electronically or manually. Electronic filing is the preferred method, as it is faster and more secure.
• What happens if I don’t file an income tax return? If you don’t file an income tax return, you may be liable to penalties and interest.

Payment of Income Tax

• How can I pay my income tax? Income tax can be paid online, through bank challans, or through designated branches of authorized banks.
• When is the due date for paying income tax? The due date for paying income tax depends on the taxpayer’s income and residential status. For individual taxpayers, the due date is generally July 31st of the current financial year. For companies, the due date is generally March 15th of the following financial year.
• What happens if I don’t pay my income tax? If you don’t pay your income tax, you may be liable to penalties and interest.

Other FAQs

• What is tax deduction at source (TDS)? Tax deduction at source (TDS) is a method of collecting income tax at the source of income. This means that the payer of income is responsible for deducting TDS from the income and paying it to the government.
• What is tax collected at source (TCS)? Tax collected at source (TCS) is a method of collecting income tax on certain transactions. This means that the seller or service provider is responsible for collecting TCS from the buyer or service recipient and paying it to the government.
• What is advance tax? Advance tax is a method of paying income tax in installments before the due date of filing the income tax return. This is typically done by individuals and companies who have a significant amount of income that is not subject to TDS.
• What are the penalties for non-compliance with income tax laws? The penalties for non-compliance with income tax laws can be severe. These penalties include interest on unpaid taxes, fines, and even imprisonment in some cases.

CASE LAWS

Case Law 1: CIT v. Minda Wire links Pvt. Ltd. (2013) 357 ITR 668 (Delhi)

Issue: Whether sales tax liability converted into a loan on the basis of a Government order would be allowed in the year of conversion or in the year in which the Government order was communicated to the assesses.

Held: The High Court held that sales tax liability converted into a loan would be allowed in the year of conversion, irrespective of the fact that the Government order was not communicated to the assesses within the relevant assessment year.

Case Law 2: Delhi Public School (Punjab and Haryana High Court)

Issue: Whether the standard deduction of RS. 1,000 per month per child is available for perquisites for free/concessional educational facility arising to an employee.

Held: The High Court held that the standard deduction of RS. 1,000 per month per child is not available for perquisites for free/concessional educational facility arising to an employee. If the value of the perquisite exceeds RS. 1,000 per month per child, the whole perquisite shall be taxable in the hands of the employee.

Case Law 3: AIESL v. Director of Income Tax (ITAT 2020)

Issue: Whether an assesses can be treated as an ‘assesses-in-default’ if it complies with the conditions of the proviso to Section 201(1) of the Income Tax Act, even if the payee does not furnish a certificate from an accountant in Form 26A.

Held: The Tribunal held that an assesses shall not be treated as an ‘assesses-in-default’ if it complies with the conditions of the proviso to Section 201(1), even if the payee does not furnish a certificate from an accountant in Form 26A.

Case Law 4: Commissioner of Income Tax v. Laxmi Starch Pvt. Ltd. (2019) 477 ITR 285 (SC)

Issue: Whether the benefit of new provisions of the Income Tax Act, 1961, which were introduced after the filing of the original return of income, can be availed of by an assesses in reassessment proceedings.

Held: The Supreme Court held that the benefit of new provisions of the Income Tax Act, 1961, which were introduced after the filing of the original return of income, can be availed of by an assesses in reassessment proceedings.

Case Law 5: CIT (Central 2) v. Sh. Anil Gupta (2010) 332 ITR 433 (SC)

Issue: Whether the Income Tax Department can issue a reassessment notice under Section 147 of the Income Tax Act, 1961, even after the expiry of the six-year time limit under Section 148A.

Held: The Supreme Court held that the Income Tax Department can issue a reassessment notice under Section 147 of the Income Tax Act, 1961, even after the expiry of the six-year time limit under Section 148A, if the assesses has concealed income or has furnished inaccurate particulars of such income.