Taxes are the most important source of government revenue and are classified as direct or indirect. Income tax was first introduced in India in 1860. The key purposes of taxes are to stabilize the economy, protect citizens, redistribute wealth, and provide government revenue. Direct taxes include income tax and wealth tax while indirect taxes include excise, customs, central sales tax, service tax, and state sales tax/VAT. An assessee is a person responsible for paying taxes under the Income Tax Act and can be an individual, HUF, company, firm, association, or artificial juridical person. The financial year runs from April 1 to March 31 and is also called the previous year, while the assessment year is the year following

3.  Tax is the most important source of
revenue of the Government.
 Taxes are generally classified into direct
tax and indirect tax.
 Income tax was introduced in India in
1860 by James Wilson who become
India’s first Finance member.

4. A tax is a compulsory charge or fees
imposed by government on individuals or
corporations.
The taxes may be imposed on the income
and wealth of the persons or corporations
and rate of taxes may vary.

5. • To stabilize the economy.
• To protecting citizens.
• To redistribute wealth from the rich to the
poor.
• To provide revenues for government.

6. TYPES OF TAXES
1. DIRECT TAX
INCOME TAX INCOME TAX ACT 1961
WEALTH TAX ACT 1957
2. INDIRECT TAX
CENTRAL
EXCISE
CENTRAL EXCISE ACT 1944
CUSTOMS CUSTOMS ACT 1962
CENTRAL SALE S TAX CENTRAL SALES TAX ACT 1956
SERVICE
TAX
SERVICE TAX ACT 1994
WEALTH TAX
STATE SALES TAX VALUE ADDED TAX

7. ASSESEE [section 2(7)].
An ASSESEE is a person by whom any tax or any
other sum of money is payable under the income tax
act.

8. 1.An individual,
2.Hindu undivided family(HUF)
3.A Company,
4. A firm,
5.An association of person or body of individuals,
whether incorporated or not.
6.A legal authority, and
7.Every artificial juridical person.
.

9. The financial year (FY) is the year in which you
earn an income.(1st April
to 31st march.)
It is also called “previous year”.

10. Means the period of twelve months
commencing on the on the 1st April every year
and ending on the 31st march of the following
year.
It is also called tax year.

11. DATES FINANCIAL YEAR ASSESSMENT YEAR
1st April 2013 to 31st
March 2014
2013-14 2014-15
1st April 2014 to 31st
March 2015
2014-15 2015-16
1st April 2015 to 31st
March 2016
2015-16 2016-17