Amended and updated notes on section 4 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to charge of income-tax.
Chapter II (Sections 4 to 9A) of the Income Tax Act 1961 deals with the provisions related to basis of charge. Section 4 of IT Act 1961 provides for charge of Income tax.
Recently, we have discussed in detail section 3 (Previous Year) of IT Act 1961. Today, we learn the provisions of section 4 of Income-tax Act 1961.
The amended provision of section 4 is effective from 1-April-1989. In this article, you will learn detail of the provisions of section 4 of the Income Tax Act 1961-2023 read with the Income-tax Rules, 1962.
Section-4: Charge of Income-tax
Section 4(1) of Income Tax Act
Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person :
Provided that where by virtue of any provision of this Act income-tax is to be charged in respect of the income of a period other than the previous year, income-tax shall be charged accordingly.
Section 4(2) of Income Tax Act
In respect of income chargeable under sub-section (1), income-tax shall be deducted at the source or paid in advance, where it is so deductible or payable under any provision of this Act.