PART -A
INCOME-TAX
CHAPTER - II
BASIS OF CHARGE
Liability to pay income-tax
2. (1) Subject to the provisions of this Code, every person shall be liable to pay income-tax in respect of his total income for the financial year.
(2) The liability to pay income-tax, referred to in sub-section (1), shall be the amount of income tax calculated at the rate specified in the First Schedule and in the manner provided therein.
(3) However, if a person is a company, the liability to pay income-tax referred to in sub-section (1) shall be the higher of the following amounts:-
(a) the amount of the liability calculated under sub-section (2); and
(b) the amount calculated at the rate specified in Paragraph A of the Second Schedule and in the manner provided therein.
(4) The liability to pay income-tax shall be discharged by payment of pre-paid taxes in accordance with the provisions of this Code.
(5) Without prejudice to the foregoing and subject to the provisions of this Code, every person may be charged in respect of his liability to pay income-tax referred to in sub-section (1).
(6) The income-tax charged under the foregoing provisions shall be collected after allowing credit for pre-paid taxes, if any, in accordance with the provisions of this Code.
(7) The liability to pay income-tax, or the chargeability thereof, under the foregoing provisions, for any financial year, shall be determined in accordance with the provisions of this Code as they stand on the 1st day of April immediately succeding the last day of the financial year.
