Income Tax

By;

Janice. M. D’souza

MC08C0418

III B.Com ‘D’

Yr: 2010-2011.

ACKNOWLEDGEMENT

I would like to express my greatest gratitude to the people who have helped and supported me throughout this project. First and foremost, I would like to thank God for blessing me with strength, courage and wisdom for overcoming the difficulties and bringing out the best in me.

I would also like to extend my heartfelt thanks to my family members and well wishers.

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INTRODUCTION TO INCOME TAX

The Income Tax Act 196:

The direct tax which is paid by individual to the Central Government of India is known as Income Tax. It is imposed on our income and plays a vital role in the economic growth & stability of our country. For years the Government is generating revenue through this tax system.

'Income Tax' means 'Income Estimate,' which helps the government to know the actual economic strength of a person. It is also a way to set up an economic standard for general people. It helps the Government to know the distribution of money among country's people.

In modern India, Income Tax came into existence in 1860 with the implementation of first Income Tax Act. After implementation of this Act, people became aware of the actual meaning of Income Tax. This act was in force for first five years. After this, in 1865, second Act came into force. There were major changes in this Act relative to the first. It proved itself as a good factor for the growth of our economy. With this Act a new concept of Agriculture Income came into existence.

After this, different new Act was also implemented. The most important of...