Scope of Total Income
•
0 likes•1,636 views
The document discusses the scope of total income based on a taxpayer's residential status in India as a resident and ordinarily resident, resident but not ordinarily resident, or non-resident. It outlines the different types of income that are taxable or not taxable in India for each residential status, based on factors such as where the income was earned and received, and whether it relates to a business or profession in or outside of India. The three main considerations for determining the scope of total income and tax incidence are the taxpayer's residential status, place of accrual or receipt of income, and the time at which income had accrued or was received.
Report
Share
Report
Share
Recommended
Scope of total income and residential status
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
Income from house property
This PPT explains each and every concept of Income from House Property under Direct taxes. It is most suitable for students of BCOM(H) and CA.
Capital gain
1) The document discusses the taxation of capital gains in India, including the conditions required for a capital gain to be chargeable, the definitions of capital assets and capital gains, and the computation of capital gains.
2) It provides details on the types of capital assets (short term and long term), the meaning of "transfer", and the different types of capital gains (short term and long term).
3) The computation of capital gains involves subtracting the cost of acquisition and cost of improvements from the full value of consideration, with the costs indexed for inflation in the case of long term capital assets.
Residential status
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Income tax act 1961
Tax is an important source of revenue for governments worldwide. Taxes are collected on income, sales, purchases, and properties to fund government operations. There are two types of taxes: direct taxes which are paid directly by individuals like income tax; and indirect taxes which are passed on through other entities like sales tax. Income tax was first introduced in India in 1860 under British rule to fund expenses from the 1857 rebellion. The current Income Tax Act of 1961 governs income tax in India and has been amended over time. It details the taxation of various types of income for individuals and organizations.
Procedure of assessment
Explains the procedure of assessment under the Income-tax Act.
The types of Assessment and relevant provisions
Residential status
The document discusses the residential status and tax liability of individuals and entities in India. It defines the basic conditions to determine if a person is a resident, ordinary resident, or non-resident based on the number of days spent in India. An ordinary resident's total income and tax liability is the highest, including both Indian and foreign income. A non-resident's total income and tax liability is based only on Indian income. The residential status of entities like HUF, companies, firms, and AOP is also determined based on the control and management of their affairs being within or outside of India.
Unit II Tax Planning and Company Promotion
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
Recommended
Scope of total income and residential status
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
Income from house property
This PPT explains each and every concept of Income from House Property under Direct taxes. It is most suitable for students of BCOM(H) and CA.
Capital gain
1) The document discusses the taxation of capital gains in India, including the conditions required for a capital gain to be chargeable, the definitions of capital assets and capital gains, and the computation of capital gains.
2) It provides details on the types of capital assets (short term and long term), the meaning of "transfer", and the different types of capital gains (short term and long term).
3) The computation of capital gains involves subtracting the cost of acquisition and cost of improvements from the full value of consideration, with the costs indexed for inflation in the case of long term capital assets.
Residential status
This document discusses residential status under Indian income tax law. It explains that an individual's tax liability depends on their residential status, which can be resident, non-resident, or ordinarily resident. It also discusses how residential status is determined for individuals, HUFs, firms, companies and other persons. Key factors include number of days present in India and control and management of affairs. The document provides examples to illustrate how residential status is assessed and its implications for taxing different types of income received in or outside of India.
Income tax act 1961
Tax is an important source of revenue for governments worldwide. Taxes are collected on income, sales, purchases, and properties to fund government operations. There are two types of taxes: direct taxes which are paid directly by individuals like income tax; and indirect taxes which are passed on through other entities like sales tax. Income tax was first introduced in India in 1860 under British rule to fund expenses from the 1857 rebellion. The current Income Tax Act of 1961 governs income tax in India and has been amended over time. It details the taxation of various types of income for individuals and organizations.
Procedure of assessment
Explains the procedure of assessment under the Income-tax Act.
The types of Assessment and relevant provisions
Residential status
The document discusses the residential status and tax liability of individuals and entities in India. It defines the basic conditions to determine if a person is a resident, ordinary resident, or non-resident based on the number of days spent in India. An ordinary resident's total income and tax liability is the highest, including both Indian and foreign income. A non-resident's total income and tax liability is based only on Indian income. The residential status of entities like HUF, companies, firms, and AOP is also determined based on the control and management of their affairs being within or outside of India.
Unit II Tax Planning and Company Promotion
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
Who is considered as resident and non-resident in India?
Key Takeaways:
Analysing the provisions of Sec 6
Recent budget amendments of Finance Act, 2020
Residency provisions under DTAA
Illustrations and Judicial Precedents
Income tax-ppt
The document discusses various aspects of income tax in India such as residential status, types of income, tax rates, deductions, and allowances. It provides definitions for key terms, outlines the process for determining residential status, and specifies tax treatment and exemptions for different types of income like salary, gratuity, pension, and perquisites. The document also details income tax slabs and surcharge rates for individuals, HUFs, firms, and companies.
Income From Other Sources
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Assessment procedure
The document summarizes different types of tax assessments in India: self-assessment, intimation, scrutiny assessment, best judgment assessment, income escaping assessment, and assessment in case of search. It provides details on the procedures, timelines, and circumstances for each type of assessment. Key points covered include types of adjustments that can be made under intimation assessment, when a scrutiny notice can be issued, the 21-month deadline for completing scrutiny assessments, and that assessments are required for the 6 years preceding a search/requisition.
Deemed Income under Income Tax Act
Deemed income refers to amounts that are treated as taxable income even though they may not meet the normal definition of income. The Income Tax Act extends the definition of income to include various receipts such as capital gains, voluntary contributions, compensation received, insurance surplus, and windfall gains.
Some key types of deemed income discussed in the document include deemed dividends from closely-held companies, income from transferred assets that is clubbed with the transferor's income, gifts exceeding certain thresholds, consideration received for shares issued by closely-held companies above fair market value, unexplained cash credits, unexplained investments/expenditures/money, and certain provident fund contributions and payments.
Penalties and prosecution ppt
The document summarizes various penalty provisions under the Income Tax Act of India. It discusses penalties for failure to furnish returns on time, concealment of income, penalties where search and seizure operations have been conducted, penalties for failure to deduct tax at source, maintain books of accounts, and pay advance tax. It also outlines the conditions for waiving or reducing penalties and the time limits for imposing penalties.
Income under head salaries
THIS POWERPOINT PRESENTATION IS FOR THE STUDENTS OF CA-IPCC/ CS-EXECUTIVE / CWA INTER & GRADUATION FOR QUICK RECAP OF PROVISION OF SALARY HEAD.
Income from salary
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
TDS (Tax Deducted at Source)
TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
Set off and carry forward of losses
Losses can be set off against income of the same year or carried forward to future years to offset income. Set off of losses occurs either intra-head, where losses of one source offset income of another source within the same head, or inter-head, where losses offset income across different heads. Strict rules govern which losses can offset which incomes both currently and when carried forward. House property losses can be carried forward 8 years against house property income, while long term capital losses can only offset long term capital gains.
INCOME FROM SALARY
1. The document discusses the taxation of income from salary under the Indian Income Tax Act of 1961.
2. It defines salary broadly to include wages, pension, gratuity, allowances, perquisites, and other payments in lieu of or in addition to salary received from an employer.
3. The key aspects covered are the characteristics of salary income, its computation by adding various salary components and deducting allowances, and the basis of its chargeability for taxation.
Various Returns of income
This presentation will guide you about various Income Tax Forms to be used with its due dates under Indian Income Tax. Also explains the various terms assigned to those returns & their time limits.
Income from salary Basics
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
Income Tax Assessment Procedures - Section 143, 144 and more
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment as the procedure for determining a taxpayer's tax liability as per the taxation laws for a particular assessment year. There are different types of assessments - self-assessment, regular assessment, and best judgment assessment. It also discusses provisions around filing original and revised tax returns, notices issued by the assessing officer, and reopening of past assessments if income is found to have escaped assessment.
Clubbing of income.bose
The document discusses various provisions under section 60-65 of the Indian Income Tax Act regarding clubbing of income. It summarizes the key conditions where income from assets may be taxed in the hands of the transferor rather than the transferee. This includes situations involving revocable transfers, transfers to a spouse or minor child without adequate consideration, and transfers for the benefit of the transferor's spouse or son's wife. Exceptions to clubbing are provided if the transfer was made for adequate consideration or under separation agreement.
Income from house property
The document discusses income from house property under the Indian Income Tax Act. It defines income from house property as the annual value of any buildings or lands owned by an assessee. It provides details on computation of gross annual value, deductions allowed, treatment of self-occupied properties, and exempted incomes from house property. The key steps involved in computing income from house property are determining the annual value, calculating the net annual value, and claiming allowed deductions.
Indirect taxes
1. Indirect taxes are taxes that are paid indirectly by consumers when purchasing goods or services, with the impact being on one person and the incidence on another.
2. Examples of indirect taxes include excise duty, customs duty, sales tax, service tax, and octroi. These taxes can be shifted from the original payer to other persons.
3. While indirect taxes constitute a major source of government revenue, they are generally considered regressive as the tax burden does not vary based on ability to pay.
Income from other sources
Presentation on computation of income from other sources for the benefit of taxation students, based on provisions of Income tax Act 1961
Profits and Gains of Business or Profession
This document provides information about an income tax course taught by Dr. K. Chellapandian. It includes details about the course code, credit hours, outcomes, units covered, textbooks, and assessment details. The key points are:
- The course is Income Tax Law & Practice - II taught by Dr. K. Chellapandian at Vivekananda College.
- It has 5 units covering topics like computation of profits/capital gains, deductions, assessment of individuals/firms, and tax authorities.
- The course aims to enable students to learn income tax provisions and assessment procedures.
- Assessment includes 40% theory and 60% problems, following amendments up to 6 months
Income from other sources
computation of income from other sources for the benefit of taxation students, based on provisions of Income tax Act 1961
Income tax introduction
This document discusses various aspects of income tax in India. It defines income tax as an annual tax on income. Direct taxes are taxes where the burden and incidence are on the same person, while indirect taxes are taxes where the burden is passed on to another person. It discusses the history and introduction of income tax in India. It explains the key concepts of gross total income, total income, casual income, and agricultural income. It also discusses the tax treatment of different types of assessees based on their residential status in India.
Residential status
- The residential status of an individual or entity determines whether income earned inside or outside India is taxable in India.
- There are different residential statuses for individuals/HUFs and other entities like firms. For individuals, the statuses are resident and ordinarily resident, resident but not ordinarily resident, and non-resident.
- Determining the residential status involves assessing whether basic or additional conditions are met based on the number of days spent in India in the relevant period. Meeting these conditions establishes whether one is a resident and ordinarily resident, or resident but not ordinarily resident.
More Related Content
What's hot
Who is considered as resident and non-resident in India?
Key Takeaways:
Analysing the provisions of Sec 6
Recent budget amendments of Finance Act, 2020
Residency provisions under DTAA
Illustrations and Judicial Precedents
Income tax-ppt
The document discusses various aspects of income tax in India such as residential status, types of income, tax rates, deductions, and allowances. It provides definitions for key terms, outlines the process for determining residential status, and specifies tax treatment and exemptions for different types of income like salary, gratuity, pension, and perquisites. The document also details income tax slabs and surcharge rates for individuals, HUFs, firms, and companies.
Income From Other Sources
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
Assessment procedure
The document summarizes different types of tax assessments in India: self-assessment, intimation, scrutiny assessment, best judgment assessment, income escaping assessment, and assessment in case of search. It provides details on the procedures, timelines, and circumstances for each type of assessment. Key points covered include types of adjustments that can be made under intimation assessment, when a scrutiny notice can be issued, the 21-month deadline for completing scrutiny assessments, and that assessments are required for the 6 years preceding a search/requisition.
Deemed Income under Income Tax Act
Deemed income refers to amounts that are treated as taxable income even though they may not meet the normal definition of income. The Income Tax Act extends the definition of income to include various receipts such as capital gains, voluntary contributions, compensation received, insurance surplus, and windfall gains.
Some key types of deemed income discussed in the document include deemed dividends from closely-held companies, income from transferred assets that is clubbed with the transferor's income, gifts exceeding certain thresholds, consideration received for shares issued by closely-held companies above fair market value, unexplained cash credits, unexplained investments/expenditures/money, and certain provident fund contributions and payments.
Penalties and prosecution ppt
The document summarizes various penalty provisions under the Income Tax Act of India. It discusses penalties for failure to furnish returns on time, concealment of income, penalties where search and seizure operations have been conducted, penalties for failure to deduct tax at source, maintain books of accounts, and pay advance tax. It also outlines the conditions for waiving or reducing penalties and the time limits for imposing penalties.
Income under head salaries
THIS POWERPOINT PRESENTATION IS FOR THE STUDENTS OF CA-IPCC/ CS-EXECUTIVE / CWA INTER & GRADUATION FOR QUICK RECAP OF PROVISION OF SALARY HEAD.
Income from salary
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
TDS (Tax Deducted at Source)
TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
Set off and carry forward of losses
Losses can be set off against income of the same year or carried forward to future years to offset income. Set off of losses occurs either intra-head, where losses of one source offset income of another source within the same head, or inter-head, where losses offset income across different heads. Strict rules govern which losses can offset which incomes both currently and when carried forward. House property losses can be carried forward 8 years against house property income, while long term capital losses can only offset long term capital gains.
INCOME FROM SALARY
1. The document discusses the taxation of income from salary under the Indian Income Tax Act of 1961.
2. It defines salary broadly to include wages, pension, gratuity, allowances, perquisites, and other payments in lieu of or in addition to salary received from an employer.
3. The key aspects covered are the characteristics of salary income, its computation by adding various salary components and deducting allowances, and the basis of its chargeability for taxation.
Various Returns of income
This presentation will guide you about various Income Tax Forms to be used with its due dates under Indian Income Tax. Also explains the various terms assigned to those returns & their time limits.
Income from salary Basics
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
Income Tax Assessment Procedures - Section 143, 144 and more
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment as the procedure for determining a taxpayer's tax liability as per the taxation laws for a particular assessment year. There are different types of assessments - self-assessment, regular assessment, and best judgment assessment. It also discusses provisions around filing original and revised tax returns, notices issued by the assessing officer, and reopening of past assessments if income is found to have escaped assessment.
Clubbing of income.bose
The document discusses various provisions under section 60-65 of the Indian Income Tax Act regarding clubbing of income. It summarizes the key conditions where income from assets may be taxed in the hands of the transferor rather than the transferee. This includes situations involving revocable transfers, transfers to a spouse or minor child without adequate consideration, and transfers for the benefit of the transferor's spouse or son's wife. Exceptions to clubbing are provided if the transfer was made for adequate consideration or under separation agreement.
Income from house property
The document discusses income from house property under the Indian Income Tax Act. It defines income from house property as the annual value of any buildings or lands owned by an assessee. It provides details on computation of gross annual value, deductions allowed, treatment of self-occupied properties, and exempted incomes from house property. The key steps involved in computing income from house property are determining the annual value, calculating the net annual value, and claiming allowed deductions.
Indirect taxes
1. Indirect taxes are taxes that are paid indirectly by consumers when purchasing goods or services, with the impact being on one person and the incidence on another.
2. Examples of indirect taxes include excise duty, customs duty, sales tax, service tax, and octroi. These taxes can be shifted from the original payer to other persons.
3. While indirect taxes constitute a major source of government revenue, they are generally considered regressive as the tax burden does not vary based on ability to pay.
Income from other sources
Presentation on computation of income from other sources for the benefit of taxation students, based on provisions of Income tax Act 1961
Profits and Gains of Business or Profession
This document provides information about an income tax course taught by Dr. K. Chellapandian. It includes details about the course code, credit hours, outcomes, units covered, textbooks, and assessment details. The key points are:
- The course is Income Tax Law & Practice - II taught by Dr. K. Chellapandian at Vivekananda College.
- It has 5 units covering topics like computation of profits/capital gains, deductions, assessment of individuals/firms, and tax authorities.
- The course aims to enable students to learn income tax provisions and assessment procedures.
- Assessment includes 40% theory and 60% problems, following amendments up to 6 months
Income from other sources
computation of income from other sources for the benefit of taxation students, based on provisions of Income tax Act 1961
What's hot (20)
Who is considered as resident and non-resident in India?
Who is considered as resident and non-resident in India?
Income Tax Assessment Procedures - Section 143, 144 and more
Income Tax Assessment Procedures - Section 143, 144 and more
Similar to Scope of Total Income
Income tax introduction
This document discusses various aspects of income tax in India. It defines income tax as an annual tax on income. Direct taxes are taxes where the burden and incidence are on the same person, while indirect taxes are taxes where the burden is passed on to another person. It discusses the history and introduction of income tax in India. It explains the key concepts of gross total income, total income, casual income, and agricultural income. It also discusses the tax treatment of different types of assessees based on their residential status in India.
Residential status
- The residential status of an individual or entity determines whether income earned inside or outside India is taxable in India.
- There are different residential statuses for individuals/HUFs and other entities like firms. For individuals, the statuses are resident and ordinarily resident, resident but not ordinarily resident, and non-resident.
- Determining the residential status involves assessing whether basic or additional conditions are met based on the number of days spent in India in the relevant period. Meeting these conditions establishes whether one is a resident and ordinarily resident, or resident but not ordinarily resident.
Incidence of Tax (1).pdf
The document summarizes the incidence of tax for individuals and Hindu Undivided Families (HUFs) depending on their residential status - resident and ordinarily resident in India, resident but not ordinarily resident in India, or non-resident in India. It states that income received or deemed received in India or accrued/arose in India is taxable for all residential statuses. It also notes that foreign income from a business controlled in India or from a profession set up in India is taxable for resident statuses and not for non-residents, while other foreign income is taxable for residents and resident but not ordinarily residents but not for non-residents.
Tax2
Income tax in India is governed by the Income Tax Act of 1961. Individuals and entities are taxed based on their residential status and total income under various heads including income from salaries, house property, business/profession, capital gains, and other sources. Tax rates and exemptions vary based on taxpayer type. The Central Board of Direct Taxes governs income tax collection which is a major source of government revenue.
Residential status
The document discusses the residential status of various persons under the Income Tax Act, including individuals, HUFs, companies, firms, AOPs and other entities. It explains the basic and additional conditions to determine whether a person is a resident, ordinarily resident or non-resident. It also summarizes the tax incidence on different types of incomes based on the residential status and source of income. Key points include that an individual is considered resident if present in India for 182 days or more, or 60 days and 182 days in last 4 years. For HUFs and firms, control and management needs to be wholly/partly in India. Companies are resident if incorporated in India or controlled from India.
Blog - Expat Tax in India
Expats moving to India or planning to work temporarily in India often find that local accountants are not familiar with the international concepts, double taxation treaties or the tax rules that are applicable to Expat Tax in India.
Scope of total income
This document discusses the scope of total income in India based on an individual's residential status. It outlines three important considerations for the incidence of tax: the residential status of the assessee, the place of accrual or receipt of income, and the point of time at which the income was accrued or received. It then provides details on the different types of income that are included in total income for residents and ordinarily residents, residents but not ordinarily residents, and non-residents. Examples are also given to illustrate how total income would be calculated for each residential category.
03 residential status 17 18 ay
- Residential status determines an individual's tax liability in India and depends on the number of days spent in India in the relevant fiscal year and previous years.
- For individuals, residential status can be ordinarily resident, not ordinarily resident, or non-resident depending on whether basic conditions regarding number of days in India are met as well as additional conditions for ordinarily resident status.
- For Hindu Undivided Families (HUFs), residential status depends on whether control and management of the HUF is wholly or partly located in India. Ordinarily resident status for HUFs also considers conditions for the karta or manager.
- Other entities like firms, companies, and other persons are considered
Residential status
The document discusses the residential status of individuals, HUFs, firms, AOPs, companies and other persons under the Income Tax Act.
It defines residents as persons satisfying the basic conditions of being in India for 182 days or more in a year or 60 days and 182 days in the last 4 years. Ordinarily residents satisfy additional conditions of being in India for 730 days in the last 7 years and in at least 2 of the last 10 years.
The residential status of HUFs, firms, AOPs and other persons depends on where the control and management of their affairs is situated. Companies are residents based on where their control and management is situated.
The incidence of tax depends
UNIT-1C.pptx
The document discusses the determination of residential status and its significance for tax liability in India. It outlines the different types of residential statuses (ordinarily resident, resident but not ordinarily resident, non-resident) for individuals, HUFs, firms, companies and others. It also examines how residential status impacts whether income earned in or outside India is taxable, depending on whether the income accrues or arises in India. The relationship between residential status, scope of tax and incidence of tax for different entities is also summarized.
Taxability of nre account of a resident indian
Under the income tax laws of India, the taxability of an individual depends upon his residence. Residence is determined on the number of days of stay in India.
Tax incidence
This document discusses the incidence of tax on individuals and other taxpayers based on their residential status and where their income is received or accrued. It defines Indian income and foreign income and outlines which types of income are taxable in India for residents and ordinarily residents, residents but not ordinarily residents, and non-residents. Examples are also provided to illustrate how to calculate total income based on residential status and income details.
Tax incidence 1
This document discusses the incidence of tax on individuals and other taxpayers based on their residential status and where their income is received or accrued. It defines Indian income and foreign income and outlines the tax treatment for different types of income based on whether the taxpayer is resident and ordinarily resident, resident but not ordinarily resident, or non-resident in India. Several problems are also provided to illustrate how to calculate total income for different residential statuses.
Taxation for NRI Income.pdf
Taxation plays a vital role in any country’s economy, and India is no exception. For Non-Resident Indians (NRIs), understanding the taxation rules and regulations is crucial to ensure compliance and minimize tax liabilities.
NRI tax obligation.pptx
NRIs have tax obligations in India that depend on their residential status and the nature of their income. An NRI is considered a resident for tax purposes if they stay in India for 182 days or more during the financial year, or 60 days or more during the financial year and 365 days or more during the preceding four financial years. NRIs are generally taxed on income earned or received in India, but income earned outside India is generally not taxable. To avoid double taxation, India has signed DTAAs with other countries. NRIs may need to file an income tax return in India if their taxable income exceeds the minimum threshold. They are also required to report foreign assets if the total value exceeds certain thresholds.
Income tax
Income tax is imposed on individuals according to their income level through a progressive tax system. The assessment year is the financial year during which a person's income from the previous year is assessed for taxation. Various types of incomes are categorized under different heads and then aggregated to determine the gross total income, from which deductions can be claimed to arrive at the total taxable income. An individual's residential status determines whether their global income is taxable in India.
Salary
- Payment of salary to a non-resident director for services rendered outside of India is not considered income that accrues or arises in India, or deemed received in India, and is thus not taxable in India.
- Under FEMA, payment of remuneration to a director would be classified as a current account transaction, allowed without restrictions.
- A company can remit up to $250,000 annually without approval under India's Liberalized Remittance Scheme for current account transactions.
Singapore Personal Tax 2018
This document provides information on various Singapore personal tax reliefs, exemptions, and schemes. It discusses tax reliefs available to Singaporeans/PRs, all taxpayers, and high net worth individuals. It also covers exemptions for foreign-sourced income if certain criteria are met. Other sections explain the differences between assessable and chargeable income, the Not Ordinarily Resident scheme, voluntary disclosure of wrong tax filings, and whether overseas income received in Singapore is taxable. The document aims to help taxpayers understand and apply relevant Singapore tax provisions.
Residential status
- The document discusses the residential status of individuals in India under the Income Tax Act and the scope of total income.
- An individual is a resident if they stay in India for 182 days or more in a year or 60 days in the current year and 365 days in the last 4 years. Special categories also include individuals staying 182 days or more.
- The total income of a resident includes global income while a non-resident's total income includes India-sourced income or income from a business controlled in India.
Taxability of ESOP and Shares outside India
How to invest overseas? Why should you invest in overseas entities? What is ESOP? What tax rates are applicable on overseas investment?
Similar to Scope of Total Income (20)
More from premarhea
Alignment.pdf
This document discusses various ways to align text and numbers within cells in Microsoft Excel, including using the ribbon, keyboard shortcuts, and the Format Cells dialog box. It provides details on how to horizontally and vertically align text to the top, middle, bottom, left, right, or center of a cell. It also describes how to change text orientation, indentation, justification, and distribution. The Format Cells dialog box allows additional alignment options like filling a cell with text, centering text across selections, and changing text direction from left-to-right to right-to-left.
MS Office 2013.pdf
This document provides an overview of the key features and functions of Microsoft Word 2013. It describes the main sections of the Word interface, including the ribbon, tabs, groups, commands, rulers, zoom controls, views, and backstage view. It also explains how to get started with Word 2013 and open, save, and close documents.
Business Application Software.pdf
This document provides an overview of the Microsoft Word application. It covers topics such as creating and opening documents, mouse and keyboard operations, navigating the Word interface including the ribbon and quick access toolbar, and formatting text and paragraphs. The document also discusses templates in Word and how they allow preconfigured settings to be applied to new documents for consistency.
Business income
1) Business income is computed by adjusting the net profit as shown in the profit and loss account by adding back inadmissible expenses and deducting allowable expenses not accounted in the profit and loss account and income not taxable under the head 'profits and gains from business or profession'.
2) Several examples are given showing the computation of business income by making the prescribed additions and deductions like salary, interest, donations, depreciation, income from other heads etc.
3) House property income is also computed by deducting standard deduction and interest on home loan from annual rent received in case of let out and self-occupied properties respectively.
Forms of organisation non-corporate enterprises
This document summarizes different forms of business organization in India. It discusses sole proprietorships, partnership firms, and joint Hindu family firms. Some key points covered are:
- Sole proprietorships are owned and managed by one person who has unlimited liability. They are easy to form but have limited capital and managerial ability.
- Partnership firms require an agreement between partners to share profits and have features like implied agency and unlimited liability of partners. They allow for larger capital but can lack stability.
- Joint Hindu family firms are formed by operation of law between members of a Hindu undivided family. They provide continuity but can have restricted membership and lack of incentive or stability.
Professional income
The document provides examples of computing taxable professional income for different professionals - a doctor, chartered accountant, lawyer, and medical practitioner. It shows how to calculate professional receipts and allowable professional expenses to determine the net professional gain or income based on the accounting system and other details provided. The computations deduct expenses like rent, salary, depreciation allowances, and other costs from the total receipts to arrive at the taxable professional income.
Professional income
The document provides examples of computing professional income for different professionals including doctors, chartered accountants, lawyers, and medical practitioners. It shows how to calculate professional receipts and deduct allowable professional expenses to determine the taxable professional gain. Expenses include rent, salaries, depreciation, cost of medicines/supplies, and more. The net professional income is calculated by deducting total expenses from total receipts.
Business income
The document defines business and profession and provides examples of computation of business income under various scenarios. It discusses adding inadmissible expenses and deducting allowable expenses not debited in arriving at business income. It also provides an example of computation of house property income where there is a let out property and self-occupied property with a loss.
Forms of organisation - non-corporate enterprises
This document summarizes different forms of business organization in India. It discusses sole proprietorships, partnership firms, and joint Hindu family firms. Some key points covered are:
- Sole proprietorships are owned and controlled by one person who has unlimited liability. They are easy to form but have limited capital and managerial ability.
- Partnership firms require an agreement between partners to share profits and have implied agency and unlimited liability unless otherwise agreed. They allow for larger capital but can lack stability.
- Joint Hindu family firms are formed by operation of Hindu law between co-parceners of a family. They provide continuity but can lack incentive and stability if mismanaged by the head of the family.
Nature of business
This document provides an overview of the nature of business. It defines business as an organization that obtains resources like funds, labor, and equipment to provide goods or services to customers in exchange for money. The document outlines key characteristics of business like the sale of goods/services, continuity, and profit motive. It also discusses the components/systems of business including personnel, finance, marketing, and production functions. The primary objective of modern business is stated as making a profit, with secondary objectives like creating customers, innovating new products, providing value, employment, and fair returns. Principles of organization, essentials of success, qualities of successful businessmen, and business ethics are also summarized.
Residential status problems
1. Mr. Prashant went to Germany for a diploma course from August 2020 to February 2021. As he was out of India for more than 182 days, his residential status for FY 2020-2021 is non-resident.
2. An individual was in India for 185 days in FY 2020-2021, 15 days in 2019-2020, and 26 days in 2018-2019. As the stay in India was less than 182 days in the last 2 years, the residential status for AY 2021-2022 is non-resident.
3. Mr. Rohan, a foreign national, has been in India for more than 120 days in 5 of the last 6 years. Therefore, his residential
Residential status
1. The document discusses the residential status of individuals, HUFs, AOPs, and firms under the Indian Income Tax Act. It provides examples and solutions for determining residential status based on the number of days spent in India and the location from which business affairs are controlled.
2. Residential status is determined based on satisfying conditions for being a resident under section 6(1) or by being ordinarily resident as defined in section 6(6).
3. Location of control and management is the determining factor for residential status of HUFs, AOPs and firms, regardless of the residential status of members.
Residential status
The document discusses the residential status rules for individuals, HUFs, firms, AOPs, and companies in India for income tax purposes. For individuals, residential status depends on the number of days spent in India in the relevant fiscal year or previous years. A HUF's residential status is based on the residential status of the Karta. For firms, AOPs, and other persons, residential status is determined by where their control and management is located. All Indian companies are considered residents, while foreign companies may be resident or non-resident depending on where their control and management is located.
Scope of TI problems
- The document discusses the tax treatment of various incomes for individuals with resident, not ordinary resident, and non-resident tax statuses in India. It provides examples of incomes from different sources and whether they would be taxable under each residential status.
- Tables are presented showing the taxable income for three individuals - Mr. X, Mr. Devilal, and Mr. Deepak - under each residential status. The types of incomes included business income, agriculture, salary, house property, capital gains, and more.
- Whether an income is taxable depends on factors like where it was earned, where it was received, and whether a business or property is controlled from India. In general, more income sources are taxable
Residential status
This document provides an overview of basic income tax concepts in India. It defines key terms like assessee, previous year, assessment year, and heads of income. It explains the different types of taxes in India including direct and indirect taxes. It also outlines the criteria for determining an individual's residential status for income tax purposes as normal resident, resident but not ordinarily resident, or non-resident. Specific examples are provided to illustrate how to determine an individual's residential status based on their period of stay in India.
Introduction to tax
This document provides an introduction to income tax in India. It discusses why taxes are paid, what the government does with tax revenue such as healthcare, education, national defense, and welfare programs. It defines key aspects of Indian taxation including that it is compulsory, imposed by the government, and not a voluntary donation. The major sources of tax revenue are income, wealth, sales, and expenditures related to service, production, imports and exports. The constitution outlines which levels of government can tax which areas. The history of income tax in India is also briefly discussed.
Unit v
The document discusses customs duty in India. It provides definitions and explanations of key terms:
1) Customs duty refers to taxes imposed on goods transported across international borders. Duties are determined based on factors like where goods were acquired or manufactured.
2) There are different types of customs duties including basic customs duty, additional customs duty, protective duty, and anti-dumping duty. Drawback allows refunds of import duties paid on goods that are later exported.
3) Sections 74-76 of the Customs Act cover duty drawback, allowing refunds of duties paid on imported goods that are re-exported, and on imported materials used to manufacture exported goods.
Capital Structure
The document discusses various methods of financing for businesses. It describes capital structure as the combination of debt and equity used to finance a company's assets. It then discusses three main methods of financing - equity financing, debt financing, and lease financing. Equity financing involves selling ownership stakes, debt financing involves taking loans that must be repaid with interest, and lease financing allows using assets without ownership through rental agreements.
Capital budgeting
Capital budgeting involves planning expenditures for long-term assets that provide returns over several years. It is an important process that requires evaluating projects carefully due to their large size, long-term implications, and irreversible nature. Key aspects of capital budgeting include identifying and evaluating investment proposals, determining which provide the highest expected rates of return, and preparing a capital expenditure budget. Various techniques can be used to evaluate projects, including payback period, accounting rate of return, net present value, internal rate of return, and risk-adjusted methods that account for uncertainty in projected cash flows.
More from premarhea (20)
Recently uploaded
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxMohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
ANATOMY AND BIOMECHANICS OF HIP JOINT.pdf
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
CACJapan - GROUP Presentation 1- Wk 4.pdf
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
A Strategic Approach: GenAI in Education
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
What is the purpose of studying mathematics.pptx
Students often ask about what the purpose is for their learning. This PowerPoint highlights some really important reasons to study Mathematics.
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama UniversityAkanksha trivedi rama nursing college kanpur.
Natural birth techniques are various type such as/ water birth , alexender method, hypnosis, bradley method, lamaze method etcMain Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
clinical examination of hip joint (1).pdf
described clinical examination all orthopeadic conditions .
The Diamonds of 2023-2024 in the IGRA collection
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Biological Screening of Herbal Drugs in detailed.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Advantages and Disadvantages of CMS from an SEO Perspective
Advantages and Disadvantages of CMS from an SEO Perspective
How to Add Chatter in the odoo 17 ERP Module
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
DRUGS AND ITS classification slide share
Any substance (other than food) that is used to prevent, diagnose, treat, or relieve symptoms of a
disease or abnormal condition
Recently uploaded (20)
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Natural birth techniques - Mrs.Akanksha Trivedi Rama University
Advantages and Disadvantages of CMS from an SEO Perspective
Advantages and Disadvantages of CMS from an SEO Perspective
Scope of Total Income
- 1. Scope of Total Income
- 2. Scope of Total Income The residential status of the assessee the place of accrual or receipt of income, whether actual or deemed the point of time at which the income had accrued to or was received by or on behalf of the assessee Incidence of tax 3 Important Considerations
- 3. Scope of Total Income Scope of total Income Resident and Ordinarily Resident (OR) Resident but Not Ordinarily Resident (NOR) Non- Resident (NR) Income received or deemed to be received in India it is immaterial whether it is earned in India or in a foreign country Taxable Taxable Taxable Income earned in India whether received, paid in India or outside India Taxable Taxable Taxable Income earned and received outside India from a business controlled or profession set up in India. Income may or may not remitted in India Taxable Taxable Not Taxable
- 4. Scope of Total Income Scope of total Income Resident and Ordinarily Resident (OR) Resident but Not Ordinarily Resident (NOR) Non-Resident (NR) Income earned and received outside India from a business controlled or profession set up outside India. Taxable Not Taxable Not Taxable Income earned and received outside India from any other sources Taxable Not Taxable Not Taxable
- 5. Scope of Total Income Scope of total Income Resident and Ordinarily Resident (OR) Resident but Not Ordinarily Resident (NOR) Non- Resident (NR) Income earned and received outside India in the years preceding the previous year in question and if the same is remitted to India during the current previous year. Not Taxable Not Taxable Not Taxable
- 6. Scope of Total Income Scope of total Income Resident and Ordinarily Resident (OR) Resident but Not Ordinarily Resident (NOR) Non- Resident (NR) Past Untaxed Foreign income brought to India / Agricultural Income from India/ Share of Income From Indian partnership firm / Dividend from an Indian Company/ Gift from a relative Not Taxable Not Taxable Not Taxable
- 7. 7