Income Tax

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Income Tax

  1. 1. INCOME TAX <ul><li>IMPORTANT DEFINITIONS: </li></ul><ul><li>ASSESSEE 2(7) Assessee means a person by whom any tax or any other sum of money is payable under this Act and includes, </li></ul><ul><li>a. every person in respect of whom any proceedings under this Act has been taken </li></ul><ul><li>b. Deemed assessee or representative assessee </li></ul><ul><li>c. Assessee –in- default </li></ul>
  2. 2. <ul><li>PERSON 2(31) </li></ul><ul><li>Person includes: </li></ul><ul><li>an individual </li></ul><ul><li>a HUF </li></ul><ul><li>a Company </li></ul><ul><li>a Firm </li></ul><ul><li>an AOP/ BOI </li></ul><ul><li>a local authority </li></ul><ul><li>Every artificial juridical person </li></ul>
  3. 3. <ul><li>ASSESSMENT YEAR 2(9) </li></ul><ul><li>Assessment year means the period of 12 months commencing on the 1 st day April every year and ending on 31 st march in the following year. </li></ul><ul><li>PREVIOUS YEAR 3 </li></ul><ul><li>It is the financial year immediately preceding the Assessment year. </li></ul><ul><li>EXCEPTIONS: </li></ul><ul><li>Shipping business of non resident co. </li></ul><ul><li>Persons leaving India. </li></ul><ul><li>Business for a limited period </li></ul><ul><li>In case of discontinued business </li></ul><ul><li>Transfer of assets </li></ul>
  4. 4. <ul><li>INCOME 2(24) </li></ul><ul><li>It means something which comes in. It is a periodical return with regularity or expected regularity. </li></ul><ul><li>FEATURES </li></ul><ul><li>Definite source </li></ul><ul><li>Income must come from outside </li></ul><ul><li>Tainted income </li></ul><ul><li>Diversion of income Vs application of income </li></ul><ul><li>Temporary or permanent </li></ul><ul><li>Voluntary receipts </li></ul><ul><li>Disputes regarding title </li></ul><ul><li>Income is money or money’s worth </li></ul><ul><li>Gift to constitute income </li></ul>
  5. 5. TYPES OF INCOMES A 1. Taxable income 2. Exempted incomes 3. Rebateable incomes u/s 86 B 1. Gross total income 2. Taxable/Total income ROUNDING OFF: OF INCOME u/s288A OF TAX u/s 288B
  6. 6. COMPUTATION OF TAX 1. INCOME FROM SALARIES XXXX 2. INCOME FROM HOUSE PROPERTY XXXX 3. INCOME FROM BUSINESS/PROFESSION XXXX 4. INCOME FROM CAPITAL GAINS XXXX 5. INCOME FROM OTHER SOURCES XXXX GROSS TOTAL INCOME XXXXX DEDUCTIONS U/S 80 XXX TAXABLE INCOME XXXXX
  7. 7. COMPUTATION OF TAX Tax on short term shares (STT) @ 10% XXX Tax on L.T Capital assets @ 20% XXX Tax on Casual Incomes @ 30% XXX Tax on other incomes ** XXX TOTAL TAX XXX LESS: Rebate u/s 88E XX TAX PAYABLE XXX ADD: surcharge @ 10% XXX ADD: Education cess @ 3% XXX TOTAL TAX XXX LESS: Tax Relief u/s 86-89 XXX Advance Tax /TDS paid if any XXX BALANCE OF TAX PAYABLE XXXX
  8. 8. TAX RATES for AY 08-09 MALE INCOME ( Rs. ) RATE O-1,10,000 nil 1,10,001-1,50,000 10% 1,50,001-2,50,000 20% exceeding 2,50,000 30% FEMALE O-1,45,000 nil 1,45,001-1,50,000 10% 1,50,001-2,50,000 20% exceeding 2,50,000 30% SENIOR CITIZEN O-1,95,000 nil 1,95,001--2,50,000 20% exceeding 2,50,000 30%
  9. 9. INCIDENCE OF TAX FOR DIFFERENT STATUS Not taxed Not taxed taxed Income earned & recd outside India from business/any other source Not taxed Not taxed Not taxed Income earned & recd outside India of earlier PYs but remitted to India in RPY Not taxed taxed taxed Income earned & recd outside India from a business (profess) set up/controlled in India taxed taxed taxed Income received in India taxed taxed taxed Income earned in India NR RNOR ROR INCOME

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