Chapters: I (Preliminary) + II (Basis of Charge) Sections: 1–10 Old Act equivalent: Sections 1–6, 7, 8, 9, 5A of IT Act 1961 Status: ✅ Fully ingested (11 files)
Sections
| Section | Heading | Chapter | Page |
|---|---|---|---|
| 1 | Short title, extent and commencement | I | s001-short-title |
| 2 | Definitions (clauses 1–50) | I | s002-definitions-a-to-m |
| 2 | Definitions (clauses 51–101) | I | s002-definitions-n-to-z |
| 3 | Definition of “tax year” | I | s003-tax-year |
| 4 | Charge of income-tax | II | s004-charge-of-income-tax |
| 5 | Scope of total income | II | s005-scope-total-income |
| 6 | Residence in India | II | s006-residence-in-india |
| 7 | Income deemed to be received / deemed dividend | II | s007-income-deemed-received |
| 8 | Income deemed to accrue — salary, dividend, interest | II | s008-income-deemed-accrue |
| 9 | Income deemed to accrue — business connection, property, capital asset | II | s009-income-deemed-accrue-india |
| 10 | Apportionment of income (Portuguese Civil Code) | II | s010-apportionment-income |
Key Concepts
- Tax year (s.3) replaces the old “assessment year” / “previous year” dual system — now a single financial year (April–March).
- Residence (s.6) determines scope of taxable income: Resident (worldwide), NOR (India + controlled foreign), NR (India only).
- 182-day / 60-day rules (s.6(2)) — the core residence tests for individuals.
- POEM (s.6(8)) — Place of Effective Management determines company residence.
- Deemed income (ss.7–9) — extensive deemed accrual provisions including business connection, significant economic presence, royalty, FTS.
- Section 2 is the largest section in the Act (~25 PDF pages, 101 definition clauses).
Related Topics
- Section 11 — exemptions from total income
- Section 202 — new tax regime (uses “total income” per s.5)
- Section 242 — jurisdiction (depends on residence)
- TCS — withholding linked to deemed accrual provisions in ss.8–9