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What is a "previous year"?

The Financial Year in which the income is earned is known as the previous year. Any financial year begins from 1st of April and ends on subsequent 31st March. The financial year beginning on 1st of April 1998 and ending on 31st March 1999 is the previous year for the assessment year 1999-2000. 

What is an 'assessment year'? 

The financial year following a previous year is known as the assessment year .For example for the previous year from 1st April 1998 to 31st March 1999, the assessment year shall be the next financial year i.e. 1st April 1999 to 31st March 2000. 

What is meant by an assessee?

Assessee means a person by whom any tax or any other sum of money is payable under the Income Tax Act, and includes - 

1. every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of whom he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person; 
2. every person who is deemed to be an assessee under any provision of this Act; 
3. every person who is deemed to be an assessee in default under any provision of this Act. 

Who is a "person " as defined under the Income Tax Act?

Section 2(31) of the Income Tax Act defines a person. The definition includes 

1. An individual 
2. A Hindu Undivided Family 
3. A Company 
4. A Firm 
5. An Association of Persons or a Body of Individuals whether incorporated or not . 
6. A Local Authority & 
7. Every artificial juridical person not falling within any of the preceding categories. 

Who is an Assessing Officer (A.O.) ?

A.O. is an abbreviation for Assessing Office. It is defined in section 2(7A) of the Income Tax Act. Assessing Officer means the Income Tax Officer, or the Assistant Commissioner of Income Tax, or the Dy. Commissioner of Income Tax, or the Jt. Commissioner of Income Tax , having jurisdiction over an assessee The Assessing Officer makes the assessment and collects taxes under the Act. 

What are 'heads of income'? 

Under Indian law income or loss is first assessed under a particular head of income in accordance with the mode of computation laid down in the provisions relating to that 'head of income' The total income assessable under the Act is the aggregation of all heads of income, The head of income' are : 

1. Salaries 
2. Income from House Property 
3. Profits and Gains of Business or Profession. 
4. Capital Gains 
5. Income from Other Sources. 

Is income from Superstructure built on leased land taxable as House Property Income?

Yes. As the assessee is the owner of the superstructure the income from such property is taxable as income from house property. 

Is the interest payable outside India allowed as a deduction u/s 24(1) while computing the income from house property? 

No the interest paid or payable outside India is not deductible. 

Is land revenue paid to the State Government in respect of property deductible u/s 24(1)? 

Yes any sum paid on account of land revenue or any other tax levied by State Government in respect of the property whose income is computed under the head income from house property is deductible on payment basis.

Is insurance premium paid to insure the property allowable as a deduction? 

Yes amount of any premium actually paid to insure the property against the risk of damage or destruction is allowed as deduction u/s 24(1) in computing the income from house property.