Page 52 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE

income, calculating the tax payable as per the tax slabs,

procedure for assessment, appeals and penalties etc.

Section 2(24) of the Income Tax Act, 1961 defines income as

including inter alia profits and gains, dividend, capital gains,

perquisites etc.

Assessment is a two-step process: Computation of total

taxable income and determination of tax payable.

Assessee is a person or a firm or a company or someone by

whom any tax or any other sum of money (interest or penalty)

is payable under the Income Tax Act.

The year of the income on which the tax is levied is called the

'previous year'.

Assessment year is the year in which the income of the

previous year is to be assessed for taxation.