Income-tax Act, 1961 · Chapter II: Basis of Charge
Section 4: Charge of income-tax
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
In plain words
This is the charging section. Income tax is charged for each assessment year at the rates set by a Central Act, on the total income of the previous year of every person.
- The rate comes from the yearly Finance Act. This section is what actually imposes the tax.
- Tax is charged on the income of the previous year, not the year of assessment.
- Where the Act provides for taxing income of some other period, tax is charged on that period instead.
- Sub-section (2) says tax may be collected by deduction at source or by advance payment where the Act requires it.
- A receipt is taxable only if it is income and falls within this charge. If something is not income at all, no other section can tax it.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
(1) 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 year4***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.
(2) 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.
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 4
- Sanjay Bhandari v. Directorate of Enforcement
- Tiger Global International IV Holdings v. The Authority for Advance Rulings (Income-Tax) & Ors
- Tiger Global International II Holdings v. The Authority for Advance Rulings( Income-Tax) & Ors
- Tiger Global International III Holdings v. The Authority for Advance Rulings (Income- Tax) & Ors
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- The Commissioner of Income Tax - International Taxation -3 v. Telstra Singapore Pte Ltd
- Subodh Kant Sahay Huf v. Income Tax Officer Ward 28(1)Delhi & Anr
- Ankit Agarwal -Legal Heir of Late Shanti Kumar Aggarwal v. Assistant Commissioner of Income Tax Central Circle 27, Delhi & Anr
- Pratishtha Images Private Limited v. Dy. Commissioner of Income Tax Central Circle 28 Delhi
- Indo Greenfuel Pvt Ltd v. Assistant Commissioner of Income Tax (Central Circle) 28 Delhi & Ors
- Sunoj Engineers Pvt Ltd v. Assistant Commissioner of Income Tax, Central Circle 27, Delhi & Anr
- Tarun Kumar Sahay v. Deputy Commissioner of Income Tax, Central Circle 28, Delhi
- Shanti Kumar Agarwal Huf v. Dy. Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Vikas Wahi v. Deputy Commissioner of Income Tax Central Circle 26, Delhi and Ors
- Anuj Sharma v. Assistant Commissioner of Income Tax, Central Circle 28, Delhi & Ors
- Alka Agarwal v. Deputy Commissioner of Income Tax Central Circle-28, Delhi
- Betsy Growth Finance Limited v. Assistant Commissioner of Income Tax Central Circle 28 & Ors
- Jagmohan Kejriwal v. Income Tax Officer Ward 62(1), Delhi & Anr
- Mahabir Parshad Gupta v. Income Tax Officer, Ward 43(1), Delhi & Anr
- Susheel Jain v. Assistant Commissioner of Income Tax, Central Circle 27, Delhi & Anr
- Vikas Wahi v. Deputy Commissioner Ofincome Tax Central Circle 26, Delhi and Ors
- Pratishtha Images Private Limited v. Deputy Commissioner of Income Tax Central Circle 28 Delhi
- Pack Plast -India- Private Limited v. Income Tax Officer Ward 19-3, Delhi and Anr
- Alankit Finsec Limited v. Dy. Commissioner of Income Tax Central Circle 28 Delhi
- Pratishtha Images Private Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- The Pr. Commissioner of Income Tax -Central-1 v. Ojjus Medicare Pvt. Ltd
- Kapareva Development Private Limited v. Assistant Commissioner of Income Tax Central Circle - 28, Delhi & Ors
- Sunoj Engineers Pvt Ltd v. Assistant Commissioner of Income Tax, Central Circle 27, Delhi & Anr
- Naresh Mittal v. Income Tax Officer Ward 43(6) Delhi & Ors
- Pack Plast -India- Private Limited v. Income Tax Officer Ward 19-3, Delhi & Anr
- Alankit Forex India Limited v. Dy.Commissioner of Income Tax, Central Circle 28, Delhi
- Mohan Kumar Garg v. Dy. Commissioner of Income Tax Circle 28, Delhi
- Ashutosh Agarwal v. Assistant Commissioner of Income Tax (Central Circle) 28 Delhi Ors
- Sakshi Agarwal v. Deputy Commissioner of Income Tax Central Circle-28, Delhi
- Ankit Agarwal -Legal Heir of Late Shanti Kumar Aggarwal v. Assistant Commissioner of Income Tax Central Circle 27, Delhi & Anr
- Naresh Mittal v. Income Tax Officer Ward 43(6) Delhi & Ors
- Kapareva Development Private Limited v. Assistant Commissioner of Income Tax Central Circle - 28, Delhi & Ors
- Saksham Investor Services Private Limited v. Income Tax Officer, Ward 22-1, New Delhi & Anr
- Kapareva Development Private Limited v. Assistant Commissioner of Income Tax Central Circle - 28, Delhi & Ors
- Mahabir Parshad Gupta v. Income Tax Officer, Ward 43(1), Delhi & Anr
- New Wave Realtors Private Limited v. Income Tax Officer, Ward 18(3), Delhi & Anr
- Shashi Garg v. Deputy Commissioner of Income Tax, Central Circle- 28, Delhi & Anr
- Subodh Kant Sahay Huf v. Income Tax Officer Ward 28(1) Delhi & Anr
- Vivek Garg v. Dy. Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Ashwani Kumar Gupta v. Assistant Commissioner of Income Tax Central Circle 17, & Anr
- Subodh Kant Sahay Huf v. Income Tax Officer Ward 28(1), Delhi & Anr
- Vivek Garg v. Dy. Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Alankit Insurance Tpa Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Alka Agarwal v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Alankit Finsec Limited v. Deputy Commissioner of Income Tax Central Circle 28, Delhi
- Alankit Finsec Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- New Wave Realtors Private Limited v. Deputy Commissioner of Income Tax Circle 28, Delhi & Anr
- Vinod Kumar Maheshwari v. Deputy Commissioner of Income Tax, Central Circle 28, Delhi & Anr
- Mahabir Parshad Gupta v. Income Tax Officer, Ward 43(1), Delhi & Anr
- Saksham Commodities Limited v. Income Tax Officer, Ward 22-1, New Delhi & Anr
- Mamta Agarwal v. Assistant Commissioner of Income Tax (Central Circle) 28 Delhi & Ors
- Mamta Agarwal v. Assistant Commissioner of Income Tax (Central Circle) 28 Delhi & Anr
- Tina Organics Pvt. Ltd v. Deputy Commissioner of Income Tax, Central Circle -28
- Jagmohan Kejriwal v. Income Tax Officer Ward 62(1), Delhi & Anr
- Jagmohan Kejriwal v. Income Tax Officer Ward 62(1), Delhi & Anr
- Vinod Kumar Maheshwari v. Deputy Commissioner of Income Tax, Central Circle 28, Delhi & Anr
- Vineeta Gupta v. Income Tax Officer Ward 46(4) Delhi and Anr
- Vineeta Gupta v. Income Tax Officer Ward 46(4 )& Anr
- Subodh Kant Sahay Huf v. Income Tax Officer Ward 28(1) Delhi & Anr
- Alankit Insurance Brokers Limited v. Deputy Commissioner of Income Tax Central Circle 28, Delhi
- Tarun Kumar Sahay Huf v. Income Tax Officer Ward 43(1), Delhi & Anr
- Mamta Agarwal v. Assistant Commissioner of Income Tax (Central Circle) 28 Delhi & Anr
- Alka Agarwal v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Alankit Forex India Limited v. Dy. Commissioner of Income Tax, Central Circle 28, Delhi
- Ashutosh Agarwal v. Assistant Commissioner of Income Tax Central Circle 28,
- New Wave Realtors Private Limited v. Deputy Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Ankit Agarwal -Legal Heir of Late Shanti Kumar Aggarwal v. Assistant Commissioner of Income Tax Central Circle 27, Delhi & Anr
- Tina Organics Pvt. Ltd v. Deputy Commissioner of Income Tax, Central Circle -28
- Vikas Promoters Private Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Alankit Insurance Tpa Limited v. Dy. Commissioner of Income Tax Circle 28, Delhi
- Alankit Insurance Brokers Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Alankit Insurance Brokers Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Tarun Kumar Sahay Huf v. Income Tax Officer Ward 43(1), Delhi & Anr
- Pack Plast -India- Private Limited v. Income Tax Officer Ward 19-3, Delhi & Anr
- Vikas Wahi v. Deputy Commissioner of Income Tax Central Circle 26, Delhi and Ors
- Vinod Kumar Garg v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Vikas Promoters Private Limited v. Dy. Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Mahabir Parshad Gupta v. Income Tax Officer, Ward 43-1, New Delhi & Anr
- Jagmohan Kejriwal v. Income Tax Officer Ward 62(1), Delhi & Anr
- Tarun Kumar Sahay v. Deputy Commissioner of Income Tax, Central Circle 28, Delhi
- Anuj Sharma v. Assistant Commissioner of Income Tax, Central Circle 28, Delhi & Ors
- Shanti Kumar Agarwal Huf v. Dy. Commissioner of Income Tax Central Circle 28, Delhi & Anr
- Ashutosh Agarwal v. Assistant Commissioner of Income Tax (Central Circle) 28 Delhi Ors
- Vikas Surya Developers Priavte Limited v. Deputy Commissioner of Income Tax Central Circle-28, Delhi & Anr
- Indo Greenfuel Private Limited v. Assitant Commissioner of Income Tax Central Circle -28, Delhi & Ors
- T Arun Kumar Saha Y Huf v. Income Tax Officer Ward 43-1, Delhi & Anr
- Vinod Kumar Garg v. Dy. Commissioner of Income Tax Central Circle 28, Delhi
- Anuj Sharma v. Assistant Commissioner of Income Tax, Central Circle 28, Delhi & Ors
- Pack Plast -India- Private Limited v. Income Tax Officer Ward 19-3, Delhi & Anr