The document provides an introduction to basic concepts in India's income tax law. It defines what a tax is, the types of taxes, and why taxes are levied. It then gives an overview of India's income tax law, including the key components like the Income Tax Act, Finance Acts, rules, circulars, and case laws. It explains the concepts of income, residential status, heads of income, computation of total income, tax rates, and filing a return of income.
Dear Viewers, This presentation covered the Income Tax Law & Practice. Mainly this slides focused on Introductory Part.
Enjoy with the learning.
Yours Dr.K.Chellapandian, Asst Prof of Commerce, Vivekananda College, Madurai. Tamil Nadu - 625 234 - India
Dear Viewers, This presentation covered the Income Tax Law & Practice. Mainly this slides focused on Introductory Part.
Enjoy with the learning.
Yours Dr.K.Chellapandian, Asst Prof of Commerce, Vivekananda College, Madurai. Tamil Nadu - 625 234 - India
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
· Tax Planning,
· Direct Tax Structure in India,
· Restriction for Tax Avoidance and Tax Evasion,
· Residential Status and Tax Planning
· Corporate Taxation and Dividend Tax
In the rule, income tax refers to a percentage of your salary that you must pay to the government. During this immediate duty course, the Government uses the money collected for infrastructure improvements and to pay workers for focal and state government agencies.
Direct taxes and indirect taxes are the two most common types of taxes. Direct taxes, such as income tax, are imposed directly on the pay obtained. During that monetary year, the rates that apply to the pay sections determine the tax estimation.
This presentation contain information regarding history of income tax, legal framework, tax collection bodies, types of tax, income tax, canons of taxation and definition for the term assesse, person, previous year, assessment year, income, total income and gross total income and agriculture income as per IT act 1961
This word file contain all information regarding taxation in india, income tax returns, types of income tax , direct tax, indirect tax, wealth tax, income tax ,excise duty , which helps you to gain knowledge about taxation in brief, and also helps you in making internship report on taxation or income tax.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
· Tax Planning,
· Direct Tax Structure in India,
· Restriction for Tax Avoidance and Tax Evasion,
· Residential Status and Tax Planning
· Corporate Taxation and Dividend Tax
In the rule, income tax refers to a percentage of your salary that you must pay to the government. During this immediate duty course, the Government uses the money collected for infrastructure improvements and to pay workers for focal and state government agencies.
Direct taxes and indirect taxes are the two most common types of taxes. Direct taxes, such as income tax, are imposed directly on the pay obtained. During that monetary year, the rates that apply to the pay sections determine the tax estimation.
This presentation contain information regarding history of income tax, legal framework, tax collection bodies, types of tax, income tax, canons of taxation and definition for the term assesse, person, previous year, assessment year, income, total income and gross total income and agriculture income as per IT act 1961
This word file contain all information regarding taxation in india, income tax returns, types of income tax , direct tax, indirect tax, wealth tax, income tax ,excise duty , which helps you to gain knowledge about taxation in brief, and also helps you in making internship report on taxation or income tax.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
2. WHAT IS A TAX?
Let us begin by understanding the meaning of tax. Tax is a fee
charged by a government on a product, income or activity.
There are two types of taxes . Direct taxes and indirect taxes.
If tax is levied directly on the income or wealth of a person,
then it is a direct tax e.g. income-tax, wealth tax.
If tax is levied on the price of a good or service, then it is
called an indirect tax e.g. excise duty, custom duty, service
tax and sales tax or value added tax. In the case of indirect
taxes, the person paying the tax passes on the incidence to
another person.
3. WHY ARE TAXES LEVIED?
The reason for levy of taxes is that they constitute the basic
source of revenue to the government. Revenue so raised is
utilised for meeting the expenses of government like defence,
provision of education, health-care, infrastructure facilities
like roads, dams etc.
4. OVERVIEW OF INCOME-TAX LAW IN
INDIA
Income-tax is the most significant direct tax. In this material,
we would be introducing the students to the Income-tax law
in India. The income-tax law in India consists of the
following components.
Income Tax Act
Annual Finance Acts
Income Tax Rules
Circulars/Notifications
Legal decisions of Courts
5. Income-tax Act
The levy of income-tax in India is governed by the Income-tax
Act, 1961. We shall briefly refer to this as the Act.
This Act came into force on 1st April, 1962.
The Act contains 298 sections and XIV schedules.
These undergo change every year with additions and
deletions brought about by the Finance Act passed by
Parliament.
In pursuance of the power given by the Income-tax Act, rules
have been framed to facilitate proper administration of the
Income-tax Act.
6. The Finance Act
Every year, the Finance Minister of the Government of India
presents the Budget to the Parliament.
Part A of the budget speech contains the proposed policies of the
Government in fiscal areas.
Part B of the budget speech contains the detailed tax proposals.
In order to implement the above proposals, the Finance Bill is
introduced in the Parliament.
Once the Finance Bill is approved by the Parliament and gets the
assent of the President, it becomes the Finance Act.
7. Income-tax Rules
The administration of direct taxes is looked after by the Central
Board of Direct Taxes (CBDT).
The CBDT is empowered to make rules for carrying out the
purposes of the Act.
For the proper administration of the Income-tax Act, the CBDT
frames rules from time to time. These rules are collectively called
Income-tax Rules, 1962. It is important to keep in mind that along
with the Income-tax Act, these rules should also be studied.
8. Circulars and Notifications
Circulars are issued by the CBDT from time to time to deal with
certain specific problems and to clarify doubts regarding the scope
and meaning of the provisions.
These circulars are issued for the guidance of the officers and/or
assessees.
The department is bound by the circulars. While such circulars are
not binding the assessees they can take advantage of beneficial
circulars.
9. Case Laws
The study of case laws is an important and unavoidable
part of the study of income-tax law.
It is not possible for Parliament to conceive and provide
for all possible issues that may arise in the
implementation of any Act. Hence the judiciary will hear
the disputes between the assessees and the department
and give decisions on various issues.
The Supreme Court is the Apex Court of the country and
the law laid down by the Supreme Court is the law of the
land.
The decisions given by various High Courts will apply in
the respective states in which such High Courts have
jurisdiction.
10. LEVY OF INCOME-TAX
Income-tax is a tax levied on the total income of
the previous year of every person. A person
includes
An individual,
Hindu Undivided Family (HUF),
Association of Persons (AOP),
Body of Individuals (BOI),
A firm,
A company etc.
11. CONCEPT OF INCOME
The definition of income as per the Income-tax Act begins with the words
“Income includes”. Therefore, it is an inclusive definition and not an exhaustive
one. Such a definition does not confine the scope of income but leaves room for
more inclusions within the ambit of the term. Certain important principles relating
to income are enumerated below –
Income, in general, means a periodic monetary return which accrues or is
expected to accrue regularly from definite sources. However, under the Income-
tax Act, even certain income which do not arise regularly are treated as income
for tax purposes e.g. Winnings from lotteries, crossword puzzles.
Income normally refers to revenue receipts. Capital receipts are generally not
included within the scope of income. However, the Income-tax Act has specifically
included certain capital receipts within the definition of income e.g. Capital gains
– gains on sale of a capital asset like land.
Income means net receipts and not gross receipts. Net receipts are arrived at
after deducting the expenditure incurred in connection with earning such receipts.
The expenditure which can be deducted while computing income under each head.
Income is taxable either on due basis or receipt basis. For computing income
under the heads ‘Profits and gains of business or profession’ and ‘Income from
other sources’ the method of accounting regularly employed by the assessee
should be considered, which can be either cash system or mercantile system.
Income earned in a previous year is chargeable to tax in the assessment year.
Previous year is the financial year, ending on 31st March, in which income has
accrued/ received.
Assessment year is the financial year (ending on 31st March) following the
previous year. The income of the previous year is assessed during the assessment
year following the previous year. .
12. TOTAL INCOME AND TAX PAYABLE
Income-tax is levied on an assessee’s total income. Such total income
has to be computed as per the provisions contained in the Income-tax
Act, 1961. Let us go step by step to understand the procedure of
computation of total income for the purpose of levy of income-tax.
Step 1 Determination of residential status
Step 2 Classification of income under different heads
Step 3 Exclusion of income not chargeable to tax
Step 4 Computation of income under each head
Step 5 Clubbing of income of spouse, minor child etc.
Step 6 Set-off or carry forward and set-off of losses
Step 7 Computation of Gross Total Income.
Step 8 Deductions from Gross Total Income
Step 9 Total income
Step 10 Application of the rates of tax on the total income
Step 11 Surcharge
Step 12 Education cess and secondary and higher education cess
Step 13 Advance tax and tax deducted at source
13. Step 1 . Determination of residential status
The residential status of a person has to be determined to ascertain which income is to be
included in computing the total income. The residential statuses as per the Income-tax Act
are shown below .
Residential status under Income Tax Act !961
Resident Non-resident
Resident And
ordinary
resident
Resident but not-
ordinary resident
14. Step 2 . Classification of income under different heads
HEADS OF INCOME:
The Act prescribes five heads of income.
SALARIES INCOME FROM
HOUSE PROPERTY
PROFITS AND GAINS OF
BUSINESS OR PROFESSION
CAPITAL
GAINS
INCOME FROM
OTHER SOURCES
• These heads of income exhaust all possible types of income that can accrue to or be
received by the tax payer.
• Salary, pension earned is taxable under the head ‘Salaries’.
• Rental income is taxable under the head ‘Income from house property’.
• Income derived from carrying on any business or profession is taxable under the head
‘Profits and gains from business or profession’.
• Profit from sale of a capital asset (like land) is taxable under the head ‘Capital Gains’.
• The fifth head of income is the residuary head under which income taxable under the
Act, but not falling under the first four heads, will be taxed.
• The tax payer has to classify the income earned under the relevant head of income.
15. Step 3 - Exclusion of income not chargeable to tax
There are certain income which are wholly exempt from income-tax
e.g. Agricultural income. These income have to be excluded and will
not form part of Gross Total Income.
Also, some incomes are partially exempt from income-tax e.g. House
Rent Allowance, Education Allowance. These incomes are excluded
only to the extent of the limits specified in the Act.
The balance income over and above the prescribed exemption limits
would enter computation of total income and have to be classified
under the relevant head of income.
16. Step 4 - Computation of income under each head
Income is to be computed in accordance with the provisions governing a particular
head of income.
Under each head of income, there is a charging section which defines the scope of
income chargeable under that head.
There are deductions and allowances prescribed under each head of income. For
example, while calculating income from house property, municipal taxes and interest
on loan are allowed as deduction. Similarly, deductions and allowances are
prescribed under other heads of income. These deductions etc. have to be
considered before arriving at the net income chargeable under each head.
17. Step 5 . Clubbing of income of spouse, minor child etc.
In case of individuals, income-tax is levied on a slab system on the total income. The
tax system is progressive i.e. as the income increases, the applicable rate of tax
increases.
Some taxpayers in the higher income bracket have a tendency to divert some portion
of their income to their spouse, minor child etc. to minimize their tax burden. In order
to prevent such tax avoidance, clubbing provisions have been incorporated in the
Act, under which income arising to certain persons (like spouse, minor child etc.)
have to be included in the income of the person who has diverted his income for the
purpose of computing tax liability.
18. Step 6 . Set-off or carry forward and set-off of losses
An assessee may have different sources of income under the same head of income. He
might have profit from one source and loss from the other. For instance, an assessee may
have profit from his textile business and loss from his printing business. This loss can be
set-off against the profits of textile business to arrive at the net income chargeable under
the head .Profits and gains of business or profession..
Similarly, an assessee can have loss under one head of income, say, Income from house
property and profits under another head of income, say, Profits and gains of business or
profession. There are provisions in the Income-tax Act for allowing inter-head adjustment
in certain cases.
Further, losses which cannot be set-off in the current year due to inadequacy of eligible
profits can be carried forward for set-off in the subsequent years as per the provisions
contained in the Act.
19. Step 7 . Computation of Gross Total Income.
The final figures of income or loss under each head of income, after allowing the
deductions, allowances and other adjustments, are then aggregated, after giving effect
to the provisions for clubbing of income and set-off and carry forward of losses, to
arrive at the gross total income.
20. Step 8 . Deductions from Gross Total Income
There are deductions prescribed from Gross Total Income. These deductions are of three types .
Deduction in respect of certain payments Deduction in respect of certain
incomes
Other deductions
1. Life insurance premium paid
2. Contribution to provident fund/
Pension fund
3. Medical insurance premium paid
4. Payment of interest of loan taken for
higher education
5. Rent paid
6. Certain donations
7. Contribution to political parties
1. Profit and gains from undertaking
engaged in infrastructural
development
2. Profit and gains from undertaking
engaged in development of
SEZ
3. Certain income of co-operative
societies
4. Royalty income etc of authors
5. Royalty on patents
Deduction in case of
person with disability
21. Step 9 . Total income
The income arrived at, after claiming the above deductions from the Gross Total Income is
known as the Total Income.
22. Step 10 . Application of the rates of tax on the
total income
The rates of tax for the different classes of assesses are prescribed by the Annual Finance
Act. The tax rates have to be applied on the total income to arrive at the income-tax liability.
23. Step 11 . Surcharge
Surcharge is an additional tax payable over and above the income-tax. Surcharge is levied
as a percentage of income-tax.
24. Step 12 . Education cess and secondary and higher education
Cess on income-tax
The income-tax, as increased by the surcharge, is to be further increased by an
additional surcharge called education cess@2%. The Education cess on
income-tax is for the purpose of providing universalised quality basic
education. This is payable by all assesses who are liable to pay income-tax
irrespective of their level of total income.
Further, .secondary and higher education cess on income-tax. @1% of income-
tax plus surcharge, if applicable, is leviable from A.Y.2008-09 to fulfill the
commitment of the Government to provide and finance secondary and higher
education.
25. Step 13 - Advance tax and tax deducted at source
Although the tax liability of an assessee is determined only at the end of the year, tax is
required to be paid in advance in certain instalments on the basis of estimated income.
In certain cases, tax is required to be deducted at source from the income by the payer at
the rates prescribed in the Act. Such deduction should be made either at the time of
accrual or at the time of payment, as prescribed by the Act.
For example, in the case of salary income, the obligation of the employer to deduct tax at
source arises only at the time of payment of salary to the employees. Such tax deducted at
source has to be remitted to the credit of the Central Government through any branch of
the RBI, SBI or any authorized bank. If any tax is still due on the basis of return of income,
after adjusting advance tax and tax deducted at source, the assessee has to pay such tax
(called self-assessment tax) at the time of filing of the return.
26. RETURN OF INCOME
The Income-tax Act, contains provisions for filing of return of income.
Return of income is the format in which the assessee furnishes information as to his total
income and tax payable. The format for filing of returns by different assessees is notified
by the CBDT.
The particulars of income earned under different heads, gross total income, deductions
from gross total income, total income and tax payable by the assessee are required to be
furnished in a return of income.
In short, a return of income is the declaration of income by the assessee in the prescribed
format.
The Act has prescribed due dates for filing return of income in case of different assessees.
All companies and firms have to mandatorily file their return of income before the due date.
Other persons have to file a return of income if their total income exceeds the basic
exemption limit.