Annual Charge A charge to secure an annual liability. Annual charges are deductible if it is not created by the assessee voluntarily and if it is not a capital charge. It is determined by the Municipal Authorities valuation of the property, and standard rent under the Rent Control Acts. Annuity A sum fixed for a term of one year received annually for life. It could be from the present employer, an ex-employer, or under the terms of a deed, and insurance policy or other contract.
All annuities are taxable under one section or the other.
Assessment Year Is a twelve-month period commencing from April 1 every year. In this year the income earned during the previous twelve-month period ended March 31 is taxed. The traditional format is one that stratifies assets on the left and liabilities and owner's equity on the right side. It is now more commonly presented in a vertical format. The primary component of the monthly salary paid to an employee by his employer for services rendered.