This document provides an overview of fringe benefits and taxation in South Africa. It discusses various types of fringe benefits including travel allowances, subsistence allowances, and the right of use of a motor vehicle. For travel allowances, it explains how to calculate the taxable amount using deemed or actual costs. For motor vehicles, it outlines how to determine the taxable value of private use and potential adjustments if accurate logbooks are kept. The purpose is to understand and apply the relevant sections of the Income Tax Act relating to fringe benefits.
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment and explains the process of filing a return of income. It outlines who needs to file a return based on their total income. It also describes the different due dates for filing returns. The document then explains the consequences of defaulting or delaying the filing of a return. It discusses various types of assessments like self-assessment, inquiry assessment, summary assessment, and scrutiny assessment. It provides details on each type of assessment and the procedures involved.
The document defines key terms related to profits and gains from business and profession under the Income Tax Act. It discusses the charging provisions for income from business and profession and outlines the methods for computing income from business and allowable deductions. It also discusses the provisions for maintenance of accounts, audit requirements, and presumptive taxation schemes for certain businesses where accounts are not maintained.
Study all the main sections of PGBP (Profit & gain from business or profession) covered here in the presentation.
Most Useful for CA/CMA/CS student.
Income tax in hands of partnership firm are discussed here very well.
For presentation on PGBP this must be useful.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
The document provides details about the Employees' Provident Fund (EPF) scheme in India including calculations, regular activities, forms used, and monthly/annual procedures. Key points include:
1) Employee contributes 12% of basic salary to PF while employer contributes 13.61% covering provident fund, pension, insurance, and administrative charges.
2) Important forms are used for joining (Form 2), withdrawal (Form 19), transfer (Form 13), and claiming benefits in case of death (Form 10D, 20, 5IF).
3) Monthly contributions and details of employees are submitted along with Form 12A and challans before the 15th and 25th respectively.
4)
The document provides an overview of insurance regulation in India. It summarizes key provisions of the Insurance Act of 1938 and the Insurance Regulatory and Development Authority (IRDA) Act of 1999. The 1938 Act established requirements for insurer eligibility, registration, financial statements, and cancellation of registration. The 1999 IRDA Act created an insurance regulatory authority to protect policyholders and promote the orderly growth of the insurance industry. It ended the monopoly of LIC and GIC and opened the industry to private Indian companies. The IRDA Act also established requirements for capital adequacy, investment of assets, licensing, solvency, and reinsurance.
The document discusses key aspects of partnership law in India according to the Partnership Act of 1932. It defines a partnership as an association of two or more people carrying on business together with a profit motive. Partners have joint ownership and control over the business. The document outlines types of partners, rights and duties of partners including fiduciary duties, how partnerships are formed, grounds for dissolution, winding up the business, and advantages and disadvantages of the partnership structure.
This document summarizes the rights of a surety in a contract. It outlines three main rights: 1) Rights against the creditor, such as being eligible for any securities the creditor holds against the principal debtor; 2) Rights against the principal debtor, such as suing the debtor to recover amounts paid if the surety discharges the debt; 3) Rights against co-sureties, such as a right to contribution if a surety pays more than their share of the debt. An example is provided of co-sureties being equally liable to pay a debt of Rs. 30,000 where if one surety pays more than their share of Rs. 10,000, they can claim the excess from the other
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment and explains the process of filing a return of income. It outlines who needs to file a return based on their total income. It also describes the different due dates for filing returns. The document then explains the consequences of defaulting or delaying the filing of a return. It discusses various types of assessments like self-assessment, inquiry assessment, summary assessment, and scrutiny assessment. It provides details on each type of assessment and the procedures involved.
The document defines key terms related to profits and gains from business and profession under the Income Tax Act. It discusses the charging provisions for income from business and profession and outlines the methods for computing income from business and allowable deductions. It also discusses the provisions for maintenance of accounts, audit requirements, and presumptive taxation schemes for certain businesses where accounts are not maintained.
Study all the main sections of PGBP (Profit & gain from business or profession) covered here in the presentation.
Most Useful for CA/CMA/CS student.
Income tax in hands of partnership firm are discussed here very well.
For presentation on PGBP this must be useful.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
The document provides details about the Employees' Provident Fund (EPF) scheme in India including calculations, regular activities, forms used, and monthly/annual procedures. Key points include:
1) Employee contributes 12% of basic salary to PF while employer contributes 13.61% covering provident fund, pension, insurance, and administrative charges.
2) Important forms are used for joining (Form 2), withdrawal (Form 19), transfer (Form 13), and claiming benefits in case of death (Form 10D, 20, 5IF).
3) Monthly contributions and details of employees are submitted along with Form 12A and challans before the 15th and 25th respectively.
4)
The document provides an overview of insurance regulation in India. It summarizes key provisions of the Insurance Act of 1938 and the Insurance Regulatory and Development Authority (IRDA) Act of 1999. The 1938 Act established requirements for insurer eligibility, registration, financial statements, and cancellation of registration. The 1999 IRDA Act created an insurance regulatory authority to protect policyholders and promote the orderly growth of the insurance industry. It ended the monopoly of LIC and GIC and opened the industry to private Indian companies. The IRDA Act also established requirements for capital adequacy, investment of assets, licensing, solvency, and reinsurance.
The document discusses key aspects of partnership law in India according to the Partnership Act of 1932. It defines a partnership as an association of two or more people carrying on business together with a profit motive. Partners have joint ownership and control over the business. The document outlines types of partners, rights and duties of partners including fiduciary duties, how partnerships are formed, grounds for dissolution, winding up the business, and advantages and disadvantages of the partnership structure.
This document summarizes the rights of a surety in a contract. It outlines three main rights: 1) Rights against the creditor, such as being eligible for any securities the creditor holds against the principal debtor; 2) Rights against the principal debtor, such as suing the debtor to recover amounts paid if the surety discharges the debt; 3) Rights against co-sureties, such as a right to contribution if a surety pays more than their share of the debt. An example is provided of co-sureties being equally liable to pay a debt of Rs. 30,000 where if one surety pays more than their share of Rs. 10,000, they can claim the excess from the other
The document discusses various requirements for directors and key managerial personnel under the Companies Act 2013. It outlines the minimum and maximum number of directors allowed for different types of companies. It also discusses requirements for appointing independent directors, woman directors, and small shareholders' directors. Other topics covered include director identification numbers, appointment and vacation of directorship, resignation and removal of directors, and requirements for appointing key managerial personnel.
The Competition Commission of India (CCI) is responsible for enforcing competition laws and preventing anti-competitive practices. It was established in 2003 and became fully functional in 2009. The CCI comprises a chairperson and 2-6 members appointed by the central government. Its duties include eliminating anti-competitive practices, promoting competition, protecting consumer interests, and encouraging efficient delivery of goods and services. The CCI has powers to regulate its procedures and seek expert assistance. It establishes benches led by the chairperson or members to handle cases. In a notable case, the CCI imposed a large penalty on the BCCI for unfair practices related to IPL team ownership.
The document discusses the essential elements of a valid contract under Indian law, focusing on the requirement of free consent. It defines key terms including consent, coercion, undue influence, misrepresentation, and mistake. For each term, it provides the legal definition from the Indian Contract Act and illustrations of how those concepts apply in assessing whether a contract is voidable due to a lack of free consent. Overall, the document outlines how lack of free consent due to coercion, undue influence, fraud, misrepresentation or mistake can potentially invalidate a contract.
This document discusses various types of special contracts in Indian contract law:
1. Contract of indemnity involves one party promising to save another from loss caused by the promisor or third party. Insurance contracts are examples.
2. Contract of guarantee involves a surety promising to perform or discharge the liability of a third party (principal debtor) if they default. Guarantee can be oral or written.
3. Bailment involves delivery of goods by one person (bailor) to another (bailee) for a purpose, to be returned when done. Pledge is a type of bailment where goods are delivered as security for a debt.
This document provides an overview of key concepts related to income tax assessment in India, including:
- Definitions of basic terms like assessee, assessment year, and previous year.
- Explanations of the assessment process and roles of the assessing officer.
- Details on tax rates for individuals and corporations.
- Formats for computing total income and tax liability.
- Due dates for filing income tax returns in different forms.
- The types of assessments including self-assessment, summary assessment, and reassessment.
- Procedures for notices of demand and penalties.
Income tax authorities under Income tax act 1961Chirantan Tiwari
The document summarizes the key income tax authorities in India and their roles and responsibilities.
The main authorities are:
1) The Central Board of Direct Taxes (CBDT) which is responsible for policy and administration of direct taxes.
2) Income tax officers, tax recovery officers, and inspectors who handle assessments, collections, and enforcement.
3) The CBDT, directors general, commissioners, and joint commissioners can appoint other tax authorities and delegate powers.
4) The jurisdiction and powers of tax authorities are determined by the CBDT through orders and directions.
This document contains a written statement on behalf of Defendant No. 1 in response to a civil suit filed by the plaintiffs. The defendant argues that the suit is not maintainable and is an abuse of process. It is stated that the plaintiffs are the defendant's real sisters who gave up their rights to the disputed property in 1983 in favor of the defendant. It is further stated that the plaintiffs consented to the defendant being the absolute owner of the property and had no objection when he decided to sell it in 2009. The defendant denies all allegations made by the plaintiffs and requests that the suit be dismissed with costs.
The Board summarizes the key details from the document:
1) Arun Bansal and his wife filed a criminal complaint against Herdillia Unimers Ltd. claiming violation of Section 73 of the Companies Act for delayed refund of their application money for shares/debentures.
2) Herdillia Unimers Ltd. contended that as Bansals were not allotted shares/debentures and had received full refund including interest, no offence was committed.
3) The Rajasthan High Court quashed the criminal proceedings, stating that as Bansals were not shareholders, they were not competent to file a complaint in court against the company.
This legal notice from an advocate represents a client seeking to dissolve his marriage through divorce. The notice summarizes that the client and recipient were married according to Hindu rites, lived together initially, but that the recipient began demanding things beyond the client's means and abusing him and his family. Despite the client's efforts to meet her demands working in a low-paying job, the recipient's behavior worsened over time. As mental and emotional abuse increased, the client now wants an immediate divorce, and calls on the recipient to agree to a mutual consent divorce within 30 days, or legal proceedings will be initiated.
The document summarizes key aspects of the Specific Relief Act 1963 in India. It outlines the objectives of the act, which are to define and amend laws around specific types of relief. It describes the different types of relief covered in the act, including specific performance of contracts, recovery of possession of property, and injunctions. For recovery of possession, it notes that Section 6 provides a summary remedy for persons dispossessed of immovable property without consent and not in due course of law, allowing recovery within 6 months.
Charge of Income Tax
Income tax is charged in assessment year at rates specified by the Finance Act applicable on 1st April of the relevant assessment year.
It is charged on the total income of every person for the previous year.
Total Income is to be computed as per the provisions of the Act
Income tax is to be deducted at source or paid in advance wherever required under the provision of the Act.
Person u/s 2(31) includes,
An Individual,
Hindu Undivided Family (HUF),
A Company,
A Firm,
An Association of Persons(AOP) or Body of Individuals (BOI),
A Local Authority,
Every other Artificial Juridical Person
Incidence of Tax
Incidence of Tax
Deductions section 80 d, 80-dd ,80-ddb 80-e and 80-gg of it act.boseShankar Bose Sbose1958
This document provides an overview of various deductions available under sections 80C to 80U of the Indian Income Tax Act of 1961. It discusses deductions available for encouraging savings, certain personal expenditures, socially desirable activities, and persons with disabilities. Specifically, it outlines deductions for life insurance premiums (80C), pension funds (80CCC), contribution to central government pension schemes (80CCD), medical insurance/treatment (80D, 80DD, 80DDB), education loans (80E), and rent paid (80GG). The maximum aggregate deduction under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
This document outlines procedures and guidelines around disclosure of information under the Right to Information Act in India. It discusses what types of information can be disclosed even after 20 years, such as those not related to security, privilege, or cabinet papers. It also describes procedures for severing exempt information, transferring applications to other public authorities, handling third party information, meeting time limits, and filing complaints to the Central Information Commission. Exempt personal information is defined as information about a government employee's performance that relates to the employer-employee relationship.
The Insurance Regulatory and Development Authority (IRDA) is the apex regulatory body for insurance in India. [IRDA] was established by an Act of Parliament to regulate, promote, and ensure the orderly growth of the insurance industry. IRDA is headquartered in Hyderabad and is responsible for protecting policyholders' interests, promoting an ethical insurance sector, and overseeing the growth of insurance across India. IRDA consists of a chairman and nine other members appointed by the Government of India.
This document discusses various types of income that are taxable under the head "Income from Other Sources" according to the Indian Income Tax Act:
1. Any sum of money over Rs. 50,000 received without consideration by an individual or HUF is taxable, except money received from relatives, on marriage, under a will, for death, or from specified institutions.
2. Gifts of immovable property, shares, jewelry, art, etc. valued over Rs. 50,000 without consideration are taxable at fair market value.
3. Closely held companies receiving share consideration over the face value are taxed on the excess amount.
4. Winnings from lotteries,
1) The document discusses various sections of the Indian Evidence Act relating to presumptions about the genuineness and authenticity of certain documents.
2) It outlines sections where courts "shall presume" and "may presume" facts about documents, with shall presume indicating facts that must be presumed unless disproven.
3) Key documents discussed include certified copies, records of evidence, maps, foreign records, and electronic records, with presumptions including that they are genuine, duly executed, and accurate.
The document discusses Hindu Undivided Families (HUFs) under tax law in India. It defines a HUF as consisting of all male descendants of a common ancestor, their wives and unmarried daughters. Two main schools of Hindu law, Mitakshara and Dayabhaga, determine sons' rights to ancestral property. For tax purposes, a HUF must have common family property and at least two members. The document outlines what types of income are taxed in the hands of the HUF versus individuals. It also discusses the concept of a Karta, impartible estates, and tax treatment of gifts and maintenance received from HUFs.
The document discusses various topics related to taxation in South Africa in 2021, including fringe benefits, travel allowances, calculating taxable income, and the duties of employers. It provides examples of calculating tax owed for different periods and includes a bonus. The presentation aims to help understand the relevant sections of the Income Tax Act relating to these taxation topics.
This document discusses fringe benefits in South Africa. It defines fringe benefits as benefits granted by employers to employees that are normally other than cash and generally require valuation to determine their taxable value. The key points covered are:
- Fringe benefits are included in an employee's gross income per the definition in section 8A and are valued according to the Seventh Schedule.
- Common types of fringe benefits include assets acquired at less than full value, use of employer assets or vehicles, meals/accommodation, loans, and services.
- The taxable value or "cash equivalent" of a fringe benefit is generally determined by reducing the fair market value of the benefit by any consideration paid by the employee.
The document discusses various requirements for directors and key managerial personnel under the Companies Act 2013. It outlines the minimum and maximum number of directors allowed for different types of companies. It also discusses requirements for appointing independent directors, woman directors, and small shareholders' directors. Other topics covered include director identification numbers, appointment and vacation of directorship, resignation and removal of directors, and requirements for appointing key managerial personnel.
The Competition Commission of India (CCI) is responsible for enforcing competition laws and preventing anti-competitive practices. It was established in 2003 and became fully functional in 2009. The CCI comprises a chairperson and 2-6 members appointed by the central government. Its duties include eliminating anti-competitive practices, promoting competition, protecting consumer interests, and encouraging efficient delivery of goods and services. The CCI has powers to regulate its procedures and seek expert assistance. It establishes benches led by the chairperson or members to handle cases. In a notable case, the CCI imposed a large penalty on the BCCI for unfair practices related to IPL team ownership.
The document discusses the essential elements of a valid contract under Indian law, focusing on the requirement of free consent. It defines key terms including consent, coercion, undue influence, misrepresentation, and mistake. For each term, it provides the legal definition from the Indian Contract Act and illustrations of how those concepts apply in assessing whether a contract is voidable due to a lack of free consent. Overall, the document outlines how lack of free consent due to coercion, undue influence, fraud, misrepresentation or mistake can potentially invalidate a contract.
This document discusses various types of special contracts in Indian contract law:
1. Contract of indemnity involves one party promising to save another from loss caused by the promisor or third party. Insurance contracts are examples.
2. Contract of guarantee involves a surety promising to perform or discharge the liability of a third party (principal debtor) if they default. Guarantee can be oral or written.
3. Bailment involves delivery of goods by one person (bailor) to another (bailee) for a purpose, to be returned when done. Pledge is a type of bailment where goods are delivered as security for a debt.
This document provides an overview of key concepts related to income tax assessment in India, including:
- Definitions of basic terms like assessee, assessment year, and previous year.
- Explanations of the assessment process and roles of the assessing officer.
- Details on tax rates for individuals and corporations.
- Formats for computing total income and tax liability.
- Due dates for filing income tax returns in different forms.
- The types of assessments including self-assessment, summary assessment, and reassessment.
- Procedures for notices of demand and penalties.
Income tax authorities under Income tax act 1961Chirantan Tiwari
The document summarizes the key income tax authorities in India and their roles and responsibilities.
The main authorities are:
1) The Central Board of Direct Taxes (CBDT) which is responsible for policy and administration of direct taxes.
2) Income tax officers, tax recovery officers, and inspectors who handle assessments, collections, and enforcement.
3) The CBDT, directors general, commissioners, and joint commissioners can appoint other tax authorities and delegate powers.
4) The jurisdiction and powers of tax authorities are determined by the CBDT through orders and directions.
This document contains a written statement on behalf of Defendant No. 1 in response to a civil suit filed by the plaintiffs. The defendant argues that the suit is not maintainable and is an abuse of process. It is stated that the plaintiffs are the defendant's real sisters who gave up their rights to the disputed property in 1983 in favor of the defendant. It is further stated that the plaintiffs consented to the defendant being the absolute owner of the property and had no objection when he decided to sell it in 2009. The defendant denies all allegations made by the plaintiffs and requests that the suit be dismissed with costs.
The Board summarizes the key details from the document:
1) Arun Bansal and his wife filed a criminal complaint against Herdillia Unimers Ltd. claiming violation of Section 73 of the Companies Act for delayed refund of their application money for shares/debentures.
2) Herdillia Unimers Ltd. contended that as Bansals were not allotted shares/debentures and had received full refund including interest, no offence was committed.
3) The Rajasthan High Court quashed the criminal proceedings, stating that as Bansals were not shareholders, they were not competent to file a complaint in court against the company.
This legal notice from an advocate represents a client seeking to dissolve his marriage through divorce. The notice summarizes that the client and recipient were married according to Hindu rites, lived together initially, but that the recipient began demanding things beyond the client's means and abusing him and his family. Despite the client's efforts to meet her demands working in a low-paying job, the recipient's behavior worsened over time. As mental and emotional abuse increased, the client now wants an immediate divorce, and calls on the recipient to agree to a mutual consent divorce within 30 days, or legal proceedings will be initiated.
The document summarizes key aspects of the Specific Relief Act 1963 in India. It outlines the objectives of the act, which are to define and amend laws around specific types of relief. It describes the different types of relief covered in the act, including specific performance of contracts, recovery of possession of property, and injunctions. For recovery of possession, it notes that Section 6 provides a summary remedy for persons dispossessed of immovable property without consent and not in due course of law, allowing recovery within 6 months.
Charge of Income Tax
Income tax is charged in assessment year at rates specified by the Finance Act applicable on 1st April of the relevant assessment year.
It is charged on the total income of every person for the previous year.
Total Income is to be computed as per the provisions of the Act
Income tax is to be deducted at source or paid in advance wherever required under the provision of the Act.
Person u/s 2(31) includes,
An Individual,
Hindu Undivided Family (HUF),
A Company,
A Firm,
An Association of Persons(AOP) or Body of Individuals (BOI),
A Local Authority,
Every other Artificial Juridical Person
Incidence of Tax
Incidence of Tax
Deductions section 80 d, 80-dd ,80-ddb 80-e and 80-gg of it act.boseShankar Bose Sbose1958
This document provides an overview of various deductions available under sections 80C to 80U of the Indian Income Tax Act of 1961. It discusses deductions available for encouraging savings, certain personal expenditures, socially desirable activities, and persons with disabilities. Specifically, it outlines deductions for life insurance premiums (80C), pension funds (80CCC), contribution to central government pension schemes (80CCD), medical insurance/treatment (80D, 80DD, 80DDB), education loans (80E), and rent paid (80GG). The maximum aggregate deduction under sections 80C, 80CCC and 80CCD is Rs. 1,00,000.
This document outlines procedures and guidelines around disclosure of information under the Right to Information Act in India. It discusses what types of information can be disclosed even after 20 years, such as those not related to security, privilege, or cabinet papers. It also describes procedures for severing exempt information, transferring applications to other public authorities, handling third party information, meeting time limits, and filing complaints to the Central Information Commission. Exempt personal information is defined as information about a government employee's performance that relates to the employer-employee relationship.
The Insurance Regulatory and Development Authority (IRDA) is the apex regulatory body for insurance in India. [IRDA] was established by an Act of Parliament to regulate, promote, and ensure the orderly growth of the insurance industry. IRDA is headquartered in Hyderabad and is responsible for protecting policyholders' interests, promoting an ethical insurance sector, and overseeing the growth of insurance across India. IRDA consists of a chairman and nine other members appointed by the Government of India.
This document discusses various types of income that are taxable under the head "Income from Other Sources" according to the Indian Income Tax Act:
1. Any sum of money over Rs. 50,000 received without consideration by an individual or HUF is taxable, except money received from relatives, on marriage, under a will, for death, or from specified institutions.
2. Gifts of immovable property, shares, jewelry, art, etc. valued over Rs. 50,000 without consideration are taxable at fair market value.
3. Closely held companies receiving share consideration over the face value are taxed on the excess amount.
4. Winnings from lotteries,
1) The document discusses various sections of the Indian Evidence Act relating to presumptions about the genuineness and authenticity of certain documents.
2) It outlines sections where courts "shall presume" and "may presume" facts about documents, with shall presume indicating facts that must be presumed unless disproven.
3) Key documents discussed include certified copies, records of evidence, maps, foreign records, and electronic records, with presumptions including that they are genuine, duly executed, and accurate.
The document discusses Hindu Undivided Families (HUFs) under tax law in India. It defines a HUF as consisting of all male descendants of a common ancestor, their wives and unmarried daughters. Two main schools of Hindu law, Mitakshara and Dayabhaga, determine sons' rights to ancestral property. For tax purposes, a HUF must have common family property and at least two members. The document outlines what types of income are taxed in the hands of the HUF versus individuals. It also discusses the concept of a Karta, impartible estates, and tax treatment of gifts and maintenance received from HUFs.
The document discusses various topics related to taxation in South Africa in 2021, including fringe benefits, travel allowances, calculating taxable income, and the duties of employers. It provides examples of calculating tax owed for different periods and includes a bonus. The presentation aims to help understand the relevant sections of the Income Tax Act relating to these taxation topics.
This document discusses fringe benefits in South Africa. It defines fringe benefits as benefits granted by employers to employees that are normally other than cash and generally require valuation to determine their taxable value. The key points covered are:
- Fringe benefits are included in an employee's gross income per the definition in section 8A and are valued according to the Seventh Schedule.
- Common types of fringe benefits include assets acquired at less than full value, use of employer assets or vehicles, meals/accommodation, loans, and services.
- The taxable value or "cash equivalent" of a fringe benefit is generally determined by reducing the fair market value of the benefit by any consideration paid by the employee.
This document provides information and instructions for claiming travel deductions on your tax return if you receive a travel allowance. It explains that you must keep a logbook recording your vehicle's odometer readings at the beginning and end of the tax year, as well as details of business and private travel. The logbook shows columns for recording dates, odometer readings, kilometers traveled, and splitting distances between private and business use. It provides two options for calculating travel deductions based on standard rates or actual costs, and notes the logbook must be kept for five years for potential audits.
Fringe benefits tax (FBT) is a tax paid by employers on certain benefits provided to employees or their family members in addition to salary or wages. The FBT year runs from April 1 to March 31. FBT is paid at a rate of 46.5% and is calculated differently depending on the type of benefit, such as for motor vehicles using either a statutory formula based on the car's cost or an operating cost method. Certain benefits are exempt from FBT such as remote area housing, relocation expenses, and minor benefits under $300 provided infrequently.
The document provides a case study on how businesses can save over £1000 per vehicle per year through a vehicle management program. It details the typical costs associated with administering, maintaining, and disposing of company vehicles. These include administration fees, driver downtime costs, and vehicle disposal expenses. The document estimates that the total annual cost of managing one vehicle yourself is around £1,685. It then outlines the significant savings that can be achieved through a vehicle leasing and management program by outsourcing vehicle administration, maintenance, and disposal. This can save around £1,310 per vehicle annually in costs. Additional benefits include breakdown assistance, accident management, and telematics services.
The document discusses various tax accounting periods and methods, depreciation accounting, and special rules for certain assets. It covers topics like tax years for individuals, partnerships, S corporations and personal service corporations. It also discusses accounting methods, depreciation methods, bonus depreciation, section 179 expensing, listed property, luxury vehicles and related party transactions.
Employee tax benefits - A ready recokoner by ZetaZeta Suite
Budget 2018 introduced a Standard Deduction to employee pay structures in lieu of medical reimbursements and conveyance allowance.
This leaves a gap in place of the two popular employee tax benefits, and not much savings from the Standard Deduction itself.
If you are looking at differentiating your pay structure from the rest and make it more lucrative, there are a few employee tax benefits, like fuel reimbursements, mobile reimbursements, books & periodicals reimbursements, LTA and gadget reimbursements, which you could look at and get started.
Operations for coaches (investment in new equipment)Patrick Gelijns
Buses and coaches, vehicles, financial plan, analysis of investments, overview, buyer and seller, purchase of highly capitalized products, travelling by road
1. This document provides training on financial services management for professional sales representatives seeking to advance their careers into management.
2. It covers the benefits of leasing, who is a good candidate for leasing, basic leasing terminology, and how to calculate residual values.
3. The objectives are to understand the benefits of leasing, determine good leasing candidates, learn terminology, and calculate residuals.
Ppt on salary income [compatibility mode]NIHITSHIROYA
This document discusses income tax rates, deductions, and allowances for salary income in India for the fiscal year 2013-2014. It outlines the tax rates for different levels of individual income. It also describes various allowances that are exempt from tax, such as transport, children's education, and house rent allowances. The document explains how perquisites like rent-free accommodation and use of employer's vehicles or loans are taxed. Medical reimbursements by employers are also addressed.
This document discusses types of gross employment income that are taxable under Malaysian tax law. It covers various types of monetary income like wages, salary, bonuses, and allowances. It also discusses benefits in kind such as company cars, mobile phones, interest subsidies, and furnished accommodation. Various examples are provided to illustrate how different types of income and benefits are treated, such as share options, reimbursements, leave pay, gratuity, and car benefits including the prescribed value method.
Fundamentals of Accounting II, Chapter 2 (2).pptxKalkaye
Plant assets include land, land improvements, buildings, equipment, and other long-term tangible assets used in a company's operations. The initial cost of plant assets includes the purchase price plus any additional costs to make the asset ready for use. Companies use depreciation to allocate the cost of plant assets over their estimated useful lives. There are different depreciation methods that can be used, such as straight-line and declining-balance, but the total depreciation expense over the asset's life is the same regardless of method used.
October 2008 - Automotive Accountants' ForumColledges
Colledge's regular forum for Automotive Accountants. This was presented in October 2008 and discussed Global Financial Crisis, Luxury Car Tax, Parts, Cash Flow, Industry Benchmarks
A Novated Lease allows an employee to lease a vehicle through salary packaging where lease payments are deducted from pre-tax salary. It involves a three-way agreement between the employee, employer, and FleetPartners. Some benefits include potentially reducing tax and having vehicle, insurance and maintenance costs managed. Fringe Benefits Tax applies to the private use portion and can be reduced by the Employee Contribution Method where employees pay a portion of costs with post-tax salary. The process involves getting employer approval, selecting a vehicle, getting a quote, signing documents, and taking delivery of the leased vehicle.
Scot Layton
Email: [email protected]
Fleet Management
mailto:[email protected]
Lecture overview
• Transport and the environment
• Fleet Safety
• Accident prevention
• Change of use
• Driver selection and training
• Managing vehicle safety
Transport and the environment
Emissions and Euro VI
Vehicle type Clean Air Zone (CAZ) minimum standard
Buses, coaches, heavy goods vehicles Euro VI (2014)
Vans, minibuses, taxis, private hire vehicles, cars Euro 6 (diesel, 2015) and Euro 4 (petrol, 2005)
Motorcycles Euro 3 (2007)
ULEZ 25th October 2021
Future clean air zones and ULEZ
• Birmingham Summer 2020 (Class D)
• Leeds Summer 2020 (Class B)
• London expansion October 2021
Class Vehicle type
A Buses, coaches, taxis, private
hire vehicles
B Buses, coaches, taxis, private
hire vehicles, heavy goods
vehicles
C Buses, coaches, taxis, private
hire vehicles, heavy goods
vehicles, vans, minibuses
D Buses, coaches, taxis, private
hire vehicles, heavy goods
vehicles, vans, minibuses,
cars, the local authority has the
option to include motorcycles
Future clean air zones and ULEZ
• Actros - £90,000 + VAT (Euro 6)
• Atego - £50,000 + VAT (Euro 6)
• Arocs - £150,000 + VAT (Euro 6)
Emissions Euro VI
Combustion
HC
CM
PM
NOx
HC
Petrol/Diesel
Controlling Emissions
• Diesel • Petrol
Petrol and Diesel NOx
Further methods of reducing environmental impact
• Maintenance
• Driver selection and training
• Route optimisation
• Vehicle type and use
Driver selection and training
Why train drivers?
Case Study
Route optimisation
• Cost of delays
• Cost of accidents
• Lost loads
• Reliable service
• Fuel efficiency
• First step is to adopt the use of routing and scheduling software
Route optimisation
Route optimisation
Route optimisation
Route optimisation
Increased Brake Pad wear
Clutch wear (Manual only)
Higher lateral acceleration:
➢ Tyre wear (outer shoulders)
➢ Increased wear on suspension components
➢ Increased wear on steering components
➢ Increased lateral forces on load
Higher risk of incident
Increased acceleration zones
A Jaworski et al, 2018
Avoiding collisions – From 2022 active safety systems will become mandatory in Europe
Avoiding collisions – Nearly half of all traffic fatalities occur at night
• Replace wiper blades when they do not clear the windscreen
• Ensure washer fluid is added to water
• Adhere to strict driving protocol
• Ensure headlights are clean and in working condition
• Fit additional lighting for extensive B road use
Vehicle Utilisation
• Cost Centre – Fleet or single vehicle
• Cost Unit – cost per load/mile/tonne
• Direct Costs – those directly attributed to the cost centre (standing and running costs)
• Fixed Costs – overheads (buildings, salaried staff)
• Variable Costs – those that vary due to the use of a cost unit
Vehicle Utilisation
January February March April May June July August September Oc.
The document discusses annual equivalent cost analysis for engineering economics. It provides examples of calculating the annual equivalent cost or revenue for alternatives with different cash flow patterns, including revenue-dominated, cost-dominated, and combinations of initial investment, annual cash flows, and salvage value. The annual equivalent method can be used to compare project alternatives and select the most economically favorable option based on having the highest net annual equivalent revenue or lowest net annual equivalent cost.
The document discusses various IRS rules and limits regarding depreciation, amortization, and Section 179 deductions. Key points include: the Section 179 deduction limit of $250,000 in 2010; bonus depreciation being eliminated in 2011; choosing the correct depreciation method and life; and special rules for automobiles including depreciation limits and the 50% business use test.
The document discusses income taxes and how they affect economic analysis and decision making. It provides information on different types of taxes, how taxable income is calculated, depreciation, and how to incorporate taxes into analyses by adjusting cash flows for taxes paid. Examples are provided to illustrate how to calculate taxable income, depreciation, and rates of return both before-tax and after-tax.
Mr. Khangamwa's taxable income for the 2010 tax year is summarized as follows:
1) His taxable income amounted to K19,636,000 after adding back disallowed expenses like donations and deducting allowed expenses like capital allowances.
2) He has to pay K5,849,400 in income tax but can deduct K1,547,500 in withholding taxes paid, leaving a net tax payable of K4,301,900.
3) Capital allowances claimed for additions to a factory building like fencing and offices are allowed because fencing is deemed protective and the offices expenditure is less than 20% of the total building cost.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
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.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
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.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
3. Introduction
Employees receives particular benefits due to the causal link of
employment
These benefits can consist of of a combination of cash salary, allowances,
advances and fringe benefits.
Benefits or assets given to employees, in a form other than cash, are
defined as ‘taxable benefits’ in paragraph 1 of the Seventh Schedule and
are generally referred to as ‘fringe benefits’.
The taxable value of fringe benefits (referred to as ‘cash equivalent’) are
included in gross income through the application of par (i) of the gross
income definition
.
4. Advances and allowances
Some companies pay advances to their employees i.e- S&Ts.
These advances must be included in gross income.
For the following allowances:
– Travel allowances
– Subsistence allowances
= include the NET AMOUNT (gross allowance less certain expenditure) in
taxable income
An amount paid as reimbursement NOT included in taxable income if it
will be used:
for expenditure incurred or to be incurred by him
on the instruction of his employer (‘principal’) in the furtherance of the
employer’s trade
and the employee is required to provide proof of the expenditure to the
employer
6. TRAVEL ALLOWANCE
(s8(1)(b)
We will focus on two types of allowances:
Fixed travel allowance
Reimburse vie allowance
Fixed travel allowances
To this type of allowance, the portion for business purposes is tax free
Only part associated with private use is taxable
Business kilometres can only be claimed if accurate log book is kept
Travelling between place of home and business ≠ business kms
There are two methods of calculation:
I.Actual business kms x deemed rate per km (provided by SARS)
II.Actual business kms x actual rate per km (supported by actual records kept)
7. TRAVEL ALLOWANCE (s8(1)(b)
DEEMED RATE PER KM
On this calculation the value of the vehicle is used to determine deemed rate
per km as per table of rates as prescribed by SARS
Value of the vehicle is:
Original cost, including VAT but excluding finance charges OR
Market value at the time when the employee first obtained the vehicle or
the right of use of it (no debt on the car)
DEEMED RATE PER KM
How to calculate deemed rate per km:
Fixed cost / total kms = fixed cost per km PLUS
Fuel cost PLUS
Maintenance cost
Deemed rate x business km = non-taxable amount
NOTE: Fixed cost apportion using days if travel allowance is received for
part of a year
NOTE: Fuel cost taxpayer must cover full cost of fuel
NOTE: Maintenance cost taxpayer must cover full cost of
maintenance
8. Travel allowance actual cost
If actual costs are used, then value of the vehicle is:
If vehicle is leased = total lease payments for the year but
may not exceed the amount of fixed cost in the table (see
previous slide) for the category of vehicle used, and
in any other case = wear and tear must be determined over a
period of seven years from date of acquisition. The cost of the
vehicle is currently limited to R595 000.
How to calculate actual rate per km:
Wear and tear / 7 years PLUS
Actual costs related to vehicle
9. Example
Royce Leyland, aged 45 years, and a resident of the Republic, owns a
vehicle that cost R513 000 (R450 000 + VAT of R63 000). He
received a travel allowance of R22 500 a month from his employer for
the year of assessment. He travelled 36 000 kms in the vehicle during
the 2019 year of which 9 000 was travelled for business purposes.
Royce kept an accurate logbook. The following actual costs (including
VAT) were incurred by Royce for the year:
Fuel costs R36 267
Maintenance costs R18 000
Licences cost R13 800
10. Solution
Deemed rate per km
Allowance received (22 500 x 12) 270 000
Total kms travelled 36 000
Private kms travelled (27 000)
Business kms travelled 9 000
Fixed cost component 153 850
Fixed cost per km (153 850/36 000) x 100 427.3c
Fuel cost per km 158.4c
Maintenance cost per km 88.9c
Total cost per km 674.6c
Deduction for business use (R6.746 x 9 000) (60 714)
Taxable amount if deemed costs are claimed 209 286
11. Solution actual rate
Actual rate
Allowance received (22 500 x 12) 270 000
Actual costs
Wear and tear (513 000/7) R73 286
Fuel costs R36 267
Maintenance costs R18 000
Licences cost R13 800
R141 353
Deduction for business use (141 353/36 000 x 9 000) (35 338)
Taxable amount if actual costs are claimed 234 662
12. REIMBURSIVE TRAVEL ALLOWANCE
Taxpayer travels first and then claims business kms from his/her
employer
Taxpayer is given an allowance on actual distance travelled (i.e.
business kms)
If the following two requirements are met:
o Allowance is based on the actual distance travelled or such
actual distance is proven to the Commissioner &
o No other travel allowance or reimbursement may be paid by
employer to employee
o THEN use simplified method
Simplified method: choose the best rate between deemed rate and
R3,61 (applied to business km)
13. Example
Lerato owns a motor vehicle that cost her R21 000 (inclusive of VAT but
exclusive of finance charges). She received a travel allowance of R3.70 per
kilometre travelled on business from the employer during the 2019 year of
assessment. She travelled 16 000 kms in the vehicle during the year and
maintained an accurate log book of business travels. She paid all the costs in
respect of maintenance and fuel and travelled 9 000 kms for business
purposes.
Calculate the taxable amount of the travel allowance on the assumption that
she would use simplified method where possible.
14. Solution
Allowance received (9 000 x R3.70) 33 300
Deemed cost
Fixed cost component 28 352
Fixed cost per km (28 352/16 000) 177.2c
Fuel cost per km 95.7c
Maintenance cost per km 34.4c
Total cost per km 307.3c
Rate per kilometre R3,073
Simplified method
Rate per kilometre R3,61
(Simplified method is more beneficial)
Deduction for business use (9 000 x R3,61) (32 490)
Taxable amount 810
15. SUBSISTENCE ALLOWANCE (s8(1)(c))
Subsistence allowance may occur if:
o employee is required to stay away from home for at least one night for
business purpose then
o only the amount that exceed the actual or deemed costs will be
included in taxable income
If proof provided of expenditure can claim expenses for
accommodation, meals or incidental costs
If proof not provided claim up to (for travel in RSA):
o R128 per day if allowance is granted for incidental costs OR
o R416 per day if the allowance is granted for costs of meal and
incidental costs
If travel outside RSA use international rates of the specific
country employee is visiting for business
16. Example
Nosipho is obliged to spend one night away from his usual place of residence
for business purposes in South Africa. She receives an allowance of R 1 580
from his employer. Calculate his taxable amount of the allowance assuming
that:
a) He is able to prove that he incurred actual expenditure of R 1 650 on
meals, accommodation and other incidental costs
b) The employer pays for accommodation and Sipho pays for R350 for
meals and other incidental costs. He does not keep documentation.
17. Seventh Schedule- Fringe Benefits
• Fringe benefits are specifically dealt with in Seventh Schedule of
Income Tax Act.
• There are two requirements that should be met:
1. An employee-employer relationship is a prerequisite to the application of the
Seventh Schedule.
2. The taxable benefit (‘fringe benefit’) must be granted because of this
relationship or as a reward for services rendered.
Benefits granted to relatives of employees and others
Taxable benefits received by a relative of an employee or any other person
because of the employee’s employment or services rendered, are taxed in
the hands of the employee.
18. Right of use of a motor vehicle
Applies if: free private use (or for a consideration less than the value
of private use) of a motor vehicle (company car)
Cash equivalent = Value of private use (3,5% or 3,25% per month x
Determined Value) LESS amount paid by employee
Use 3,25% = if the car has a maintenance plan if not use 3,5%
Maintenance plan contract covering all maintenance costs for not
less than 3 years and a distance of not less than 60 000 km
Determined value = Retail market value
If car is owned by employer:
reduce determined value by depreciation of 15% per year (using
the reducing balancing method)
between the date of acquisition and date of right of use
for each completed 12-month period
19. Right of use of motor vehicle continued
If accurate log book is kept for private and business km then value
of private use can be reduced in term of par 7(7) and par 7(8)
Par 7(7) reduction on value of private use = value of private use x
business km/total kms = reduction in terms of par 7(7)
Par 7(8) reduction on private use (USE PRIVATE KMS ONLY):
Cost of license x private kms/total kms
Cost of insurance x private kms/total kms
Cost of maintenance x private kms/total kms
Fuel = private kms x rate per deemed table use determined value to
determine the rate for fuel
:
20. EXAMPLE
SOLUTION
Value of private use (3.25% x R741 000 x 7) =
168 578
Cash equivalent (R168 578 – (R200 x 7))
167 178
Paragraph 7(7) adjustment (R168 578 x 11 000/21 000) (88
303)
Paragraph 7(8) adjustment (16
264)
Licence cost (R890 x 10 000/21 000) R424
Fuel (10 000 km x R1,584) R15 840
Taxable income 62 611
21. Right of use of a motor vehicle
If two cars are made available to the
employee
use the car with the highest determined value for
calculating private use if an accurate log book is
not kept
If accurate log book is kept use both
determined values to calculate the private use
No value:
private use of vehicle by employee is infrequent and vehicle is
not normally kept at the employee’s residence
If the nature of the employee’s duties regularly requires him to
use the vehicle for duties outside of his normal hours of work
and his private use is limited to travel between his place of
residence and his place of work
Ignore operating lease consequences
22. Meals, refreshments, meal & refreshment
vouchers
Applies if: free meals, refreshments, meals & refreshment vouchers
(M,R,V)
Exclusion = board or meals provided with residential accommodation
Cash equivalent = Value of M,R,V LESS amount paid by employee
Value = cost of M,R,V for employer
No value = meals or refreshments supplied by employer to employee in a canteen (or similar) mainly used by
employees, on the business premises of the employer, during business hours or extended working hours, on a
special occasion
23. Residential accommodation
Applies if: free residential accommodation or for
a consideration of less than the cash equivalent
Cash equivalent = Rental value LESS amount
paid by employee
Special rules (cash equivalent) = (A – B) x
C/100 x D/12
A = ‘remuneration proxy’
B = abatement = R78 150
C = 17 or 18 or 19
D = number of months entitled to the accommodation
C:
17 = all other cases
18 = house has 4 rooms or more and is either
furnished or electricity is supplied
19 = house has 4 rooms or more and is furnished and
electricity is supplied
24. EXAMPLE
EXAMPLE
From 1 July 2018 Big Bang rented a house in Umhlanga sands for
Sheldon, one of its employees. Big Bang pays rental of R5 000 per
month, and in return Sheldon pays Big Bang R1 500 per month. The
house has three bedrooms, a kitchen, a lounge and two bathrooms.
Sheldon is responsible for the water and lights and he bought his own
furniture when he moved into the house. Sheldon’s salary was R388 000
during the previous year of assessment.
SOLUTION
Cash equivalent
Value of private use = (A – B) x C/100 x D/12 = (388 000 – 78 150) x
17/100 x 8/12 35 116
Less amount paid by employee (R1 500 x 8) (12
000)
Cash equivalent (‘taxable benefit’) 23
116
25. QUESTION TIME
“The only difference between tax and death is that death doesn’t get worse every time
Congress meets.” Will Rose