CA Inter Income Tax Notes: Basic Concepts, Assessee and Previous Year

The notes move through the basic framework of the Income-tax Act and then into core definitions. Students get a clear explanation of who counts as an assessee, how representative assessees are treated, and how the assessment year and previous year relate to each other with a worked example for AY 2026-27. The preview also covers special cases where income is assessed within the same previous year, such as non-resident shipping business, persons leaving India, discontinued businesses and tax avoidance by transferring assets. A tabular summary of Sections 68 to 69C on unexplained cash credits, investments and valuables adds practical clarity for exam questions.

The chapter-wise structure and the table of contents make it easy to jump to a specific topic before a mock test. Definitions and the list of exceptions to the normal previous year rule are useful for quick recall in theory questions. Students can read the structure of the Act section first and then move to the definition of assessee, which builds the vocabulary needed for later chapters on residential status and income from house property. Revising these pages in short sittings helps retain the difference between the previous year and assessment year, a point examiners often test.

• Income-tax Act 1961 structure
• Sections sub-sections provisos and explanations
• Finance Act and Finance Bill
• Assessee and deemed assessee
• Representative assessee under Section 160
• Assessment year and previous year
• Exceptions to previous year taxation
• Unexplained cash credit and investments (Sections 68-69C)