Personal financial management involves managing an individual's or family's monetary resources over time. It includes income from employment, savings and investments, expenses, taxes, and planning for life events. Effective tax planning can help reduce tax liability by taking advantage of exemptions, deductions, rebates and allowances within the law. It involves organizing one's finances to structure income and expenses to minimize taxes owed. Proper tax planning ensures taxes are paid on time while maximizing wealth accumulation for life goals and financial security.
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
This PPT has in detail the ways how one can do efficient tax planning. For more information visit https://www.financialhospital.in/tax-planning-seminar.php
Phuong - Taxation in the UK - Chapter 9 - The personal tax computationPhuong Nguyen
Going along with this presentation is the instruction for self-learning, hihi, but in Vietnamese :D
Hope it would be helpful for you in this quite boring subject ^^
(Please read comments from the bottom to the top)
This PPT has in detail the ways how one can do efficient tax planning. For more information visit https://www.financialhospital.in/tax-planning-seminar.php
Phuong - Taxation in the UK - Chapter 9 - The personal tax computationPhuong Nguyen
Going along with this presentation is the instruction for self-learning, hihi, but in Vietnamese :D
Hope it would be helpful for you in this quite boring subject ^^
(Please read comments from the bottom to the top)
Kewajiban PPh PPN dari seorang BendaharawanRoko Subagya
Bendaharawan memegang peranan pentung dalam mengurus uang pajak yang dipercayakan kepadanya. Seringkali kita salah intersepsi bahwa yang namanya kewajiban pajak itu berarti adalah kewajiban membayar. Padahal, dalam ketentuannya, yang dimaksud kewajiban pajak itu ada 3 yaitu kewajiban Menghitung, Membayar, dan Melapor sejumlah pajak yang memang harus terutang. Tak terkecuali jika hasil perhitungan itu nihil, kewajiban pajak tetap harus diolaksanakan, berarti kita harus lapor pajak dalam hal ini
Selain tanah, aktiva tetap mengalami penyusutan nilai. Tinggal pertanyaannya adalah bagaimanakah caranya menghitung nilai penyusutan aktiva tetap?
Semoga materi ini cukup jelas dan membantu.
Selamat belajar dan sukses.
Presentation on computation of profits and gains of business and profession for the benefit of taxation students, based B. Com Taxation syllabus of Goa University .
SEQUEL MODUL PPN ::: Ditambah Pertanyaan-Pertanyaan Singkat Pajak Pertambahan...Roko Subagya
SEQUEL MODUL PPN ::: Ditambah Pertanyaan-Pertanyaan Singkat Pajak Pertambahan Nilai
SEQUEL MODUL PPN ::: Ditambah Pertanyaan-Pertanyaan Singkat Pajak Pertambahan Nilai
SEQUEL MODUL PPN ::: Ditambah Pertanyaan-Pertanyaan Singkat Pajak Pertambahan Nilai
SEQUEL MODUL PPN ::: Ditambah Pertanyaan-Pertanyaan Singkat Pajak Pertambahan Nilai
•What is income tax –Best income tax lawyer in lucknow.pptxGabrielLechner1
Income tax is a tax that governments impose on individuals' earnings or income, including wages, salaries, dividends, interest, rental income, and other sources of income. The purpose of income tax is to generate revenue for the government to fund public services, infrastructure, and other expenditures.
Income tax is usually progressive, meaning that higher-income individuals are taxed at higher rates. Tax rates and brackets can vary significantly between countries, and some countries may also have different tax rates for different types of income (e.g., earned income vs. investment income).
Taxpayers are typically required to file tax returns annually, reporting their income and calculating the amount of tax they owe based on the applicable tax rates and deductions. Taxpayers may also be eligible for various tax credits and deductions that can reduce their taxable income or the amount of tax they owe.
Governments use various methods to collect income tax, such as withholding taxes from paychecks (pay-as-you-earn or PAYE system), estimated tax payments for self-employed individuals, and annual tax return filings for individuals and businesses.
Overall, income tax is a crucial component of a country's tax system, providing essential revenue for government operations and public services while also influencing economic behavior and wealth distribution.
There are several reasons why taxes are necessary. First and foremost, taxes provide the government with the funds needed to finance essential public services and projects that benefit society as a whole. These services include maintaining roads and bridges, funding public schools and universities, providing healthcare services, and ensuring public safety through law enforcement and emergency services.
Additionally, taxes play a crucial role in redistributing wealth and reducing economic inequality. Progressive tax systems, for instance, require higher-income individuals to pay a larger percentage of their income in taxes, while lower-income individuals pay a lower percentage. This helps ensure that wealthier individuals contribute proportionally more to society's needs and helps fund social welfare programs that support disadvantaged populations.
Furthermore, taxes can be used as a tool to influence economic behavior and achieve policy objectives. For example, governments may use tax incentives or penalties to encourage environmentally friendly practices, promote investment in specific industries or regions, or discourage harmful activities such as smoking or excessive consumption of sugary drinks.
In summary, taxes are necessary for funding public services, reducing economic inequality, and achieving various policy goals that benefit society as a whole. While they may be a source of contention for some, they are a fundamental aspect of modern governance and play a vital role in shaping the economic and social landscape of a country.
What Are The Different Forms Of Taxes Applicable In India.pdfyamunaNMH
Forms Of Taxes Applicable, Ever wonder why certain purchases are subject to varying taxation? For example, income taxes are imposed on compensation, but property taxes are the total of real estate transactions. As a taxpayer, you should be aware of the many tax types that are applicable in India because taxes are the foundation of any economy’s progress.
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.
Understanding Indian Tax Evasion & Its Consequences.pdfyamunaNMH
Tax evasion is an illicit practice used by people and businesses to evade paying taxes. In India, there are several ways to avoid paying income taxes. Since taxes are regarded as a significant source of funding for the government, tax evaders are subject to penalties imposed by the Indian government.
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
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.
Effectiveness of Tax Deduction at Source (TDS) in IndiaDr. Amarjeet Singh
To Study and analyses all the purposes for which
TDS in India was introduced to ensure whether they are
properly achieved for collection of more revenues to Govt.
Also study major types of tax system in the world. Study
whether Adam smith’s all the four Canon of Taxation are
satisfied by TDS mechanism and to what extent with reasons
there for. To conclude, considering major tax collection
mechanism, whether TDS mechanism is effective or not.
Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan.
Section 80D provides taxpayers with tax deductions on the premium paid towards health insurance policies for self, parents, spouse, and children. The taxpayers are can claim the following amounts as deductions under Section 80D: i) Up to Rs 25,000 on the premium for health insurance availed for self, spouse, and children. ii) If your parents are covered under the insurance policy, then a maximum deduction of Rs 50,000 is allowed. iii) If either of your parents is a senior citizen, then the maximum deduction allowed is Rs 75,000.
Now, let’s see how Akash can utilise the provisions of Section 80D to save taxes. He buys a health policy for himself by paying a premium of Rs 20,000. He later decides to cover his parents as well under the policy. He spends an additional Rs 53,000 to do so. Akash’s father is aged 61 years. Hence, he can avail an additional deduction of up to Rs 50,000 towards the premium paid to cover his father. Thus, Akash can claim Rs 70,000 paid by him (Rs 20,000 for covering self and Rs 50,000 for covering parents, one of whom is a senior citizen) under Section 80D this year. He saves Rs 21,840 in taxes under this Section.
The middle class in India has been facing a growing burden due to rising taxes over the years. With the increasing cost of living and stagnant incomes, the additional financial strain has made it difficult for many to make ends meet. In recent years, the government has increased the tax rates for various goods and services, including essential commodities such as petrol and diesel, which has led to inflation and affected the middle class the most. The pandemic has only exacerbated this issue, with many middle-class families struggling to pay for healthcare and other necessities. The government must find ways to ease the burden on the middle class, such as by increasing tax exemptions and reducing tax rates for essential goods and services, to ensure that they can maintain a decent standard of living.
Bollywood’s fastest 100 crore grosser of all times
Personal Tax Management
1. Abhiraj Patel (IM-2K8-01)
Ankur Pandey (IM-2K8-007)
Devpreet Kaur (IM-2K8-24)
Jasneet Kaur Khanuja (IM-2K8-37)
Khushwant Singh (IM-2K7-47)
MBA (MS) 5yrs. Sem VIII
2. PFM or Personal Financial Management is the
application of the principles of finance to the
monetary decisions of an individual or family
unit. It addresses the ways in which individuals or
families obtain, budget, save, and spend
monetary resources over time, taking into
account various financial risks and future life
events. Components of personal finance might
include checking and savings accounts, credit
cards and consumer loans, investments in
the stock market, retirement plans, social
security benefits, insurance policies, and income
tax management.
3. Asset Cash Discipline
I flow
n
Debt Spending
v habits
e
s Savings Budget Liabilities
t line
5. Income
Balance Sheet
Statement
Income
Asset Liabilities
Expense
6. Income Tax
Wealth Tax
Property Tax
Personal Taxes are the taxes levied on an
Individual regardless of his/her Business or
Profession.
7. The government of India imposes an income tax on taxable
income of individuals, Hindu Undivided Families (HUFs),
companies, firms, co-operative societies and trusts (identified
as body of individuals and association of persons) and any
other artificial person. Levy of tax is separate on each of the
persons. The levy is governed by the Indian Income Tax Act,
1961. The Indian Income Tax Department is governed by
the Central Board for Direct Taxes (CBDT) and is part of the
Department of Revenue under the Ministry of Finance, Govt. of
India. There are close to 35 million income tax payers in India.
In India, individual income tax is a progressive tax with three
slabs. About 10 per cent of the population meets the minimum
threshold of taxable income.
8. The total income of a person is divided into
five heads, viz. taxable heads:
Income from Business or Profession
Income from Salary
Income from Other Sources
Income from Capital Gains
Income from House property
9. I TAX RATES FOR INDIVIDUALS OTHER THAN II, III & IV BELOW
Upto 1,80,000 - Nil
1,80,000 to 5,00,000 - 10% of the amount exceeding 1,80,000
5,00,000 to 8,00,000 - Rs.32,000 + 20% of the amount exceeding 5,00,000
8,00,000 & above - Rs.92,000 + 30% of the amount exceeding 8,00,000
II TAX RATES FOR RESIDENT WOMEN BELOW 60 YEARS
Upto 1,90,000 - Nil
1,90,000 to 5,00,000 - 10% of the amount exceeding 1,90,000
5,00,000 to 8,00,000 - Rs.31,000 + 20% of the amount exceeding 5,00,000
8,00,000 & above - Rs.91,000 + 30% of the amount exceeding 8,00,000
III TAX RATES FOR INDIVIDUAL RESIDENTS AGED 60 YRS AND ABOVE & BELOW 80 YEARS (SENIOR CITIZEN)
Upto 2,50,000 - Nil
2,50,000 to 5,00,000 - 10% of the amount exceeding 2,50,000
5,00,000 to 8,00,000 - Rs.25,000 + 20% of the amount exceeding 5,00,000
8,00,000 & above - Rs.85,000 + 30% of the amount exceeding 8,00,000
IV TAX RATES FOR INDIVIDUAL RESIDENTS AGED 80 YRS AND ABOVE (VERY SENIOR CITIZEN)
Upto 5,00,000 - Nil
5,00,000 to 8,00,000 - 20% of the amount exceeding 5,00,000
8,00,000 & above - Rs.60,000 + 30% of the amount exceeding 8,00,000
There is no surcharge in the case of every individual, Hindu undivided family, Association of persons and body
of individuals.
EDUCATION CESS
The amount of Income-tax shall be increased by Education Cess of 3% on Income-tax.
10. Property tax or 'house tax' is a local tax on buildings, along with appurtenant
land, and imposed on owners. It resembles the US-type wealth tax and
differs from the excise-type UK rate. The tax power is vested in the states
and it is delegated by law to the local bodies, specifying the valuation
method, rate band, and collection procedures. The tax base is the annual
ratable value (ARV) or area-based rating. Owner-occupied and other
properties not producing rent are assessed on cost and then converted into
ARV by applying a percentage of cost, usually six percent. Vacant land is
generally exempt. Central government properties are exempt. Instead a
'service charge' is permissible under executive order. Properties of foreign
missions also enjoy tax exemption without an insistence for reciprocity. The
tax is usually accompanied by a number of service taxes, e.g., water tax,
drainage tax, conservancy (sanitation) tax, lighting tax, all using the same
tax base. The rate structure is flat on rural (panchayat) properties, but in the
urban (municipal) areas it is mildly progressive with about 80% of
assessments falling in the first two slabs. By all accounts, the property tax is
under-utilised in the municipalities and not effectively used in the
panchayats, mainly due to tax payer resistance.
11. Wealth tax came into existence on 1st April 1957. Wealth tax is
derived from the property owned by the proprietor. The
proprietor needs to pay tax every year on property owned by
them. The residential property that does not yield any income to
its owner is also subjected to wealth tax.Wealth tax is termed as
most significant direct tax.
As per the wealth tax act, wealth tax is applicable to the following:
An individual person
A group of people who own a property
A company or organization
A Hindu undivided family (HUF)
Person belongs to 1-by -6 categories
A representative or heir of a dead person
Non corporative tax payer
12. Tax planning is a broad term that is used to describe the processes utilized
by individuals and businesses to pay the taxes due to local, state, and federal
tax agencies. The process includes such elements as managing tax
implications, understanding what type of expenses are tax-deductible under
current regulations, and in general planning for taxes in a manner that
ensures the amount of tax due will be paid in a timely manner.
Thus, planning for taxes involves knowing which types of income currently
qualify for as exempt from taxation. The process also involves understanding
what types of expenses may be legitimately considered as deductions, and
what circumstances have to exist in order for the deduction to be claimed on
the tax return.
For individuals, this can mean income sources such as interest accrued on
bank accounts, salaries, wages and tips, bonuses, investment profits, and
other sources of income as currently defined by law.
13. Tax Planning is NOT tax evasion. It involves
sensible planning of your income sources and
investments. It is not tax evasion which is illegal
under Indian laws.
Tax Planning is NOT just putting your money
blindly into any 80C investments.
Tax Planning is NOT difficult. Tax Planning is
easy. It can be practiced by everyone and with a
very little time commitment as long as one is
organized with their finances.
14. It is because Tax planning is an essential part
of your financial planning. Efficient tax
planning enables you to reduce your tax
liability to the minimum. This is done by
legitimately taking advantage of all tax
exemptions, deductions rebates and
allowances while ensuring that your
investments are in line with your long term
goals.
15. The first is to reduce the adjusted gross income for the tax
period. This is where understanding current tax laws as they
relate to allowances and exemptions come into play.
A second approach to tax planning is to increase the amount
of tax deductions. Again, this means knowing current laws and
applying them when appropriate to all usual and normal
expenses associated with the household or the business. Since
these can change from one annual period to the next, it is always
a good idea to check current regulations.
One final approach that may be applicable to effective tax
planning has to do with the use of tax credits. This can include
credits that relate to retirement savings plans, college expenses,
adopting children, and several other credits. One common
example of a tax credit is the Earned Income Credit, which is
intended to relieve the tax burden for persons who earn less
than a certain amount within a given calendar year.
16. You should think about the following criteria, before selecting your tax saving
investments for the year:
Liquidity: How quickly will you need the money? Will you need to access the money
within the next year or two years or over what duration ?
None of the above instruments let you withdraw your money quickly, in fact there
is a minimum three year lock in for all tax saving investments.
Risk and Return: How much risk do you want to take. There is a trade off between
the two, some instruments are very low risk, but as a result they give low returns
which are capped.
Inflation protection: The instruments that give you a low return typically are the
worst type of investments regarding inflation. This is important because many of
the instruments give you a fixed rate of interest, and lock in your money for a long
period. This is not a good protection against inflation.
Tax Exemption: All tax saving investments under Section 80C are alike in one
respect that they are tax exempt when they are invested. But they differ with
respect to the tax on the income you earn from such an investment as well as the
tax on the maturity of the investment.
17. 1. Make full use of the entire Section 80C deduction
The maximum reduction available in Section 80C is Rs.100,000 and salaried
citizens whose gross salary is Rs.250,000 or more are entitled to use the full
Rs.100,000 limit.
Individuals who make monetary infusions of over Rs.100,000 in Section 80C in
selected areas fail to understand that the advantages are limited. In spite of
investing Rs.70,000 and Rs.40,000 in Public Provident Fund and ELSS
respectively, the amount entitled by the investor is only Rs.100,000.
Following investments/contributions meet the criteria for Section 80C reduction:
Public Provident Fund
Accrued interest on National Saving Certificate
Life Insurance Premium
National Saving Certificate
Tuition fees paid for children's education (maximum 2 children)
Principal component of home loan repayment
5-Year fixed deposits with banks and Post Office
Equity Linked Savings Schemes (ELSS)
18. 2. Reduction of tax liability beyond Section 80C deductions
If your salary surpasses Rs.250,000 pa and the reductions under Section 80C are
not enough to minimize the general tax liability consider the following:
Home loan: Interest payments of upto Rs.150,000 pa are entitled for reduction under
Section 24.
Medical insurance: A deduction of upto Rs.15,000 pa under section 80D is
applicable under this.
Donations: Tax advantages under Section 80G entitle the donations to particular
funds/institutions.
3. Assert tax advantages on house rent paid
If HRA is not included in the salary structure then the salaried individuals can asset
rent paid by them for residential lodging. This reduction is accessible under
Section 80GG and is smallest amount of the following:
25% of the total earnings or,
2,000 every month or,
Surplus of housing charge paid over 10% of total salary.
19. 4. Reorganize the salary
Reorganizing the salary and incorporating certain apparatus can help in the long run
in minimizing the tax liability. In order to assert tax benefits salary reform is a
more competent measure. The following can be included in an individual's salary
structure:
Food coupons can release up to Rs.60,000 per year from tax.
Medical expenses which are compensated by the employer spare up to Rs.15,000
per year.
House Rent Allowance (HRA) should be incorporated in the salaries of individuals
who stay in rented houses
Transport allowance discharge upto Rs.800 per month.
5. Go for a combined home loan
The primary reimbursement on a home loan is entitled for a reduction of up
to Rs.100,000 pa and the interest rewarded is entitled for a reduction of up
to Rs.150,000 pa. When a home loan is for a considerable amount then the
interest and chief reimbursement surpass the allotted limit. A salaried individual
can go for a combined joint home loan with his parent, spouse or sibling, to
guarantee the best utilization of tax advantages.
In this way both the owners can assert tax reductions in the percentage of their
stake holding in the loan.
20. Inefficient use of resources.
Risk of not meeting financial
objectives.
Unprepared for the storms of life.
Pay higher taxes than necessary.
Delay retirement; live on less money.
May be difficult fulfilling God’s
purpose for your life.
21. A good Tax Planner is always happy
Have a happy financial year with a
burden of increased Taxes.