1001(Income Tax) What does scope of total income signify ?(Concept) Video Link - https://youtube/watch?v=T39AXgq___Q Narration - By Amlan Dutta Before we begin anything , please master the concept of previous year . Because every thing we say is in terms of a certain previous year . Ok , anyways let me explain again , previous year is the financial year of which the income earnt by the taxpayer is considered for taxation and assessment year is the year in which the income is offered for assessment! So , let the previous year be 2013 14 for the purposes of this tutorial ! Say i am a resident for this previous year In this year , my income was c0ontributed was salary , House property , capital gain and other sources ( FD deposit ) I made some savings under section 80 also ( life insurance (80 C , donations (80 G ) So , my scope of total income is defined by all this income heads being taken into consideration and loss being adjusted to arrive first at gross total income and then savings done under section 80 getting deducted to arrive at total income In each of this heads , income earnt globally and in india was considered because i was a resident .Had i been a non resident , only the income whose first receipts is in india would be in scope only (Please watch my tuts on Double taxation avoidance agreement for further clarity ) This was my case ....for the same previous year , my moms scope of total income was just from FD interest ...my fathers scope of total income was from profession and his savings done under section 80 My salaried friend at BHEL has scope of total income from BHEL offered salary to him and his savings done under section 80 C Retired colonel J P agrawal has scope of total income from pension and FD interest income besides his savings done under section 80 Infosys has business income besides savings under section 80 contributing to scope of total income XYZ partnership firm also has business income contributing to scope of total income So , you can very well see how different taxapayers scope of total income varies and this scope of total income has to be seen seperately for each previous year , Hopefully , you understand the bigger picture ! Khush ! Now ,please share knowledge so that your education just doesnt benefit only you , but it benefits the whole of mankind ! Please dont subscribe to my channel; or like my FB page ...just be a good human and in doing that you would have subscribed to my heart and that is more important anyways ! Peace , Amlan Dutta
Posted on: Mon, 06 Oct 2014 02:58:09 +0000
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