Assertion (A) is generally true under the principle of 'tax on own income,' though exceptions exist (e.g., clubbing of income). Reason (R) is factually correct as the CBDT is the apex body responsible for the administration of direct taxes in India. While the reason does not directly explain the assertion, both statements are independently true facts within the context of the Indian tax system.

Tax planning involves arranging financial affairs to minimize tax liability within the legal framework, while tax management involves complying with statutory requirements like filing returns. Both are legal activities, unlike tax evasion, which is illegal and punishable.

The Income Tax Act, 1961, is a comprehensive piece of legislation that governs the entire framework of income taxation. It includes provisions for charging income, defining taxable income, specifying exemptions, and providing various rebates and tax reliefs to taxpayers.

Tax planning is categorized based on its scope and intent. Permissive planning operates within legal provisions, purposive planning targets specific financial goals, and temporal planning (short or long-range) involves timing financial decisions to optimize tax liability. All these definitions are standard in the study of tax management and fiscal strategy.

In the context of the Income Tax Act, the period of 12 months commencing on the first day of April and ending on the 31st of March is formally referred to as the 'Assessment Year'. This is the year in which the income earned in the 'Previous Year' is assessed and taxed. While it is also a financial year, the specific tax terminology for this cycle is the Assessment Year.

Statement 1 is correct as the assessment year is a 12-month period. Statement 3 is correct as there are 5 heads of income (Salary, House Property, Profits/Gains of Business/Profession, Capital Gains, and Other Sources), though the question lists 6. Statement 5 is correct as residential status is fundamental to determining tax liability. The discrepancy in the number of heads suggests a potential conflict with the standard Act definition.

Income tax was introduced in India for the first time in 1860 by James Wilson, who was the first Finance Member of the Viceroy's Council. This measure was implemented to address the financial crisis faced by the British colonial government following the 1857 uprising.

Under the Income Tax Act, a company is classified as either a 'Resident' or a 'Non-Resident' in India. The concepts of 'Ordinary Resident' and 'Not Ordinary Resident' are applicable only to individuals and Hindu Undivided Families (HUFs), not to corporate entities.

According to the fundamental principles of income tax law, the 'Previous Year' is the financial year in which income is earned, while the 'Assessment Year' is the subsequent year in which that income is assessed and taxed. Therefore, income earned in a previous year is chargeable to tax in the immediately following assessment year.

In India, the higher exemption limits for senior citizens (60+) and super senior citizens (80+) are only available to resident individuals. A non-resident, regardless of their age, is subject to the basic exemption limit applicable to individuals under 60 years of age, which is Rs. 2,50,000. Therefore, the super senior status does not grant additional benefits to non-residents.