Sources of Public Finance

3. I N T R O D U C T I O N
• Tax revenue is defined as the revenues collected from
taxes on income and profits, social security contributions,
taxes levied on goods and services, payroll taxes, taxes
on the ownership and transfer of property, and other
taxes.
• Total tax revenue as a percentage of GDP indicates the
share of a country’s output that is collected by the
government through taxes.
• It can be regarded as one measure of the degree to which
the government controls the economy’s resources.

4. C L A S S I F I C AT I O N

5. C L A S S I F I C AT I O N
Tax revenue
Direct tax Indirect tax
Where the burden and imposition of
tax is on different person
Ex . GST
Where the burden and imposition of tax
is on same person
For ex:- Income tax, wealth tax, property
tax

6. C L A S S I F I C AT I O N

9. Assessment year sec 2(9)

10. Previous year sec 3

12. I N C O M E F R O M
S A L A RY D E D U C T I O N
• Deductions under Section 16
• Section 16 of the Income Tax Act provides three
different types of tax deductions on salary income.
These deductions help lower the tax liability. The
deductions under Section 16 include the following:
• Standard deduction (50000)
• Deduction for entertainment allowance paid by the
employer
• Deduction for professional tax charged on the salary
income

13. I N C O M E F R O M H O U S E
P R O P E R T Y D E D U C T I O N

14. I N C O M E F R O M O T H E R
S O U R C E S D E D U C T I O N
• Deduction in respect of saving sec 80(c)
The amount of deduction is
1) ₹ 1,50,000
2) Actual amount
3) which ever is less
• Deduction in respect of contribution to pension funds sec 80
(ccc)
-- Same as sec 80(c)
Note :- the maximum Limit of deduction for sec 80 (c) & 80 (ccc)
Cannot exceed ₹ 1,50,000

15. I N C O M E F R O M O T H E R S O U R C E S
• Deduction in respect of medical insurance premium sec
80(D)

16. I N C O M E F R O M O T H E R S O U R C E S
• Deduction in respect of maintenance of handicapped dependent pension sec 80(DD)
If disability is upto 80% or less = ₹ 75,000
If disability is more than 80% = ₹ 1,25,000
• Deduction in respect of Interest paid on higher education loan sec 80 (E)
• Deduction in respect of handicapped Assessee sec 80 (u)
If disability is upto 80% or less = ₹ 75,000
If disability is more than 80% = ₹ 1,25,000
• Deduction in respect of Interest on saving bank A/c sec 80 (TTA)
1) Actual amt
2) ₹ 10,000
3) which ever is less

17. THANK YOU