2. TAX
Tax is the income which is paid by an individual
to the Government.
An individual may be An assessee ,a company,
a firm, A Hindu undivided family.
The Provisions of Indian income tax came into
existence from 1st April 1962.
Every year budget is presented by our finance
minister on 28th march.
5. INTRODUCTION
Wealth is a tax on “ASSETS”
Wealth Tax is paid by “INDIVIDUALS/HUF/COMPANIES”
Wealth Tax is charged on “Net Wealth”
Net Wealth = Total Assets - Total Debts.
Taxable Income:
There is no surcharge & education cess on Wealth Tax.
Wealth Tax is paid on the Assets owned by the Assessee
on a Particular Date.
o This date is 31st March of the Year Preceding the Assessment
Year..This date is known as “Valuation Date” .
NET WEALTH TAX %
Up to
30,00,000/-
0%
Balance 1%
6. APPLICABILITY OF WEALTH TAX
Persons covered under Wealth Tax
An individual and
Hindu Undivided Family (HUF) and
a company
Persons not covered under Wealth tax
Co-operative Society,
Companies register u/s 25 of companies Act
Social club
Political parties ,
RBI,
Mutual Fund registered under section 10(23D) of Income
Tax Act.
7. WHAT IS AN ASSET ?
Any building or land there to whether used for
residential or commercial purpose.
8. Motor cars (other than used by assessee’s in
business).
Jewellery
Bullion
Furniture
Utensils or any other article made wholly and
partly of gold, silver, platinum or any other
precious metal.
9. Yachts, boats & aircraft.
(Note :- Helicopter is not covered under aircraft)
Urban land.
10. • Cash in hand in excess of Rs.50,000.
• Incidence Of Wealth Tax:
The liability of wealth tax depends upon the
citizenship & residential status.
For HUF, it depends totally upon residential
status.
11. VALUATION DATE
It is the last day of the previous year for income tax
assessment.
Valuation date will be always on March 31st.
Net Wealth:
According to sec(2) Net wealth means the
amount by which the aggregate value of all assets
wherever located belonging to the assesse on the
valuation date, is in excess of the aggregate value of all the debts
owed by the assessee on the valuation date.
12. ROLE OF WEALTH TAX IN BUDGET
Surcharge of 10 percent on persons (other
than companies) whose taxable income
exceed 1 crore to augment revenues.
Increase surcharge from 5 to 10 percent
on domestic companies whose taxable
income exceed 10 crore.
In case of foreign companies, surcharge to
increase from 2 to 5 percent, if the taxable
income exceeds 10 crore.
13. CONCLUSION
The revenue from wealth tax is
negligible as compared to the
revenue from income tax. The
expenses incurred in collection the
wealth tax is very high compared to
the revenue earned.
An important point to note is that
the wealth tax is unable to keep a
check on the affluent people of the
society as it fails to bridge the gap
between the rich and the poor, as
the tax rate is extremely low.
15. INTRODUCTION
Professional Tax is like any tax, is a source of revenue for the government. The
tax charged by the state governments in India.. Like other taxes professional
tax have different rate and method of collection for different states..
Professional tax is a tax paid by all professionals and working individuals of
companies falling under certain categories. The amount paid towards
professional tax is exempt from income tax.
As per Article 276, Constitution of India, maximum amount payable
towards professional tax cannot exceed Rs.2500/-.This tax is payable to any
one municipality, local board, district board, or any other legislative agency in
the state for the Professions,Trades, Callings and Employments carried out in
that particular state.
1
16. RULES GOVERNING PROFESSIONAL TAX
PAYMENT:
There are certain rules governing the payment of professional tax
Some salient points to note:
Companies engaged in hiring people for its trade have to apply for certificate
of enrolment.
This certificate has to be obtained within 30 days from the date of tax paying
eligibility.
Foreigners employed in these companies are not liable to pay professional tax.
For every place of work, separate application needs to be submitted as per the
requirement of the particular state where the place of work is situated.
For individuals employed by any of the diplomatic offices or office of consulate,
the professional tax has to be paid by the individuals as these offices need not
get a certificate of registration.
2
19. WHO ALL EXEMPTED FROM PROFESSIONAL TAX??
There are a few categories and people who get benefit of tax
exemption:
Senior citizens,
Parent of a mentally challenged child,
Persons or parents of children suffering from physical disability.
Agriculturalist, temple priest, pastor, goldsmith, blacksmith, pot
maker, washer men, people who perform community based default
duties, bookbinder, plumber & electrician.
5
20. TAX PENALTY RULES:
Delay in payment of professional tax attracts penalty.. late payment
attracts 10% of additional tax
In fact a delay in obtaining enrolment is also penalised at the rate of
Rs.2 per day. If the information that you provided at the time of
enrolment is found to be incorrect or false, you have to pay a tax that
is three times higher.
If you file your returns late you can be penalised Rs.300/- per every
late return filed.
6
21. CONCLUSION
• As we all know, tax is a source of revenue for the government, we
have to pay the tax in time & edify the people to pay the tax.
7
23. Introduction:
Customs duty is levied under the Customs Act,
1962 as per the rates specified in the First Schedule to
the Customs Tariff Act, 1975 known as “Tariff rates”.
The Customs Tariff Act, 1975 also provides for levy of
(I) Additional duty of customs (commonly referred to as
counter vailing duty or CV duty), which is levied at a rate
equal to the excise duty leviable on a like article if
produced (Or) manufactured in India and which is levied
at a rate of 4%.
The Central Government has been delegated powers of
exemption under Section 25(1) of the Customs Act,1962
to issue notifications in public interest so as to prescribe
duty rates lower than the tariff rates prescribed in the
Schedule to the Customs Tariff Act.
24. • The estimate of revenue foregone under various exemption
notifications is based on the data generated from the Bills of
Entry filed in the Indian Customs Electronic Data Interchange
System (ICES).
•For the year 2011-12, gross customs revenue captured by
EDI data was 1,26,504 crore as against the actual gross
customs revenue collection of 1,49,300 crore. Thus, the
EDI captured nearly 85% of the actual reported gross
customs revenue collection
for the year 2011-12.
•The gross customs revenue for the year 2011-12 was
1,49,300 crore.
25. •Period of concession available for specified part of
electric and hybrid vehicles extended up to
31 March 2015.
•Duty on specified machinery for manufacture of
leather and leather goods including footwear
reduced from 7.5 to 5 percent.
•Duty on pre-forms precious and semi-precious
stones reduced from 10 to 2 percent.
•Duty of 10 percent on export of unprocessed
ilmenite and 5 percent on export on ungraded
ilmenite.
•Concessions to air craft maintenaince,
repair and overhaul (MRO) industry.
26. • Duty on Set Top Boxes increased from 5 to10 percent.
•Duty on raw silk increased from 5 to 15 percent.
•Duties on Steam Coal and Bituminous Coal equalised and 2
percent custom duty and 2 percent CVD levied on both kinds coal.
•Duty on imported luxury goods such as high end motor vehicles,
motor cycles, yachts and similar vessels increased.
• Duty free gold limit increased to 50,000 in case of male passenger
and `1,00,000 in case of a female passenger subject to conditions.
28. •Excise duty is levied as per the rates specified in the
First and Second Schedules to the Central Excise Tariff
Act, 1985.
• The rates specified in various enactments are known
as the “Tariff rates” of Excise duty.
•Central Government has been granted powers under
Section 5A(1) of the Central Excise Act, 1944.
• The rates prescribed by exemption notifications are
known as the “effective rates”.
•As for area-based exemptions, there are two types of
schemes currently in operation - [i] based on refunds
(North East and J & K) and [ii] exempted states
(Himachal Pradesh and Uttarakhand).
29. •Automation of Central Excise & Service Tax
(ACES) system has been launched in all the Central
Excise formations across the country.
•Revenue was estimated at 2,06,167 crores. The
estimates of 2,06,188 crore show an increase of
5.4% over last year’s revised figure of 1,95,590
crore.
•The revenue has increased compared to that
registered in 2011-12, because collections have
increased in the current
financial year by over 18% till December, 2012
compared to the corresponding period in 2011-12.
• Further, the central excise duty rates have been
raised from 10% to 12%, 5% to 6%.
30. The following are the Various Reliefs And
Burdens on Various Excise Duties:
•Relief to readymade garment industry. In case of cotton, zero
excise duty at fibre stage,Incase of spun yarn made of man
made fibre, duty of 12 percent at the fibre stage.
•Handmade carpets and textile floor coverings of coir and jute
totally exempted from excise duty.
•To provide relief to ship building industry, ships and vessels
exempted from excise duty, No CVD on imported ships and
vessels.
• Specific excise duty on cigarettes increased by about 18%.
•Excise duty on SUVs increased from 27 to 30 percent.
Not applicable for SUVs registered as taxies.
31. •Excise duty on marble increased from 30 per square meter to
60 per square meter.
•Duty on mobile phones priced at more than 2000 raised to
6 percent.
•Proposals to levy 4 percent excise duty on silver manufactured
from smelting zinc or lead.
•MRP based assessment in respect of branded medicaments
of Ayurveda,Unani,Siddha, Homeopathy and bio-chemic
systems of medicine to reduce valuation disputes.
33. Introduction:
• The service tax act came into existence in the year
1994.
• Income From Service Tax For The Year
2012-2013 Is 1,32,697 Crores.
34. The following are the Various Reliefs And Burdens
of Service Tax:
•Exemption of Service Tax on copyright on
cinematography limited to films exhibited in
cinema halls.
•Proposals to levy Service Tax on all
Air conditioned restaurants.
• Vocational courses offered by institutes affiliated
to the State Council of Vocational Training and
testing activities in relation to agricultural produce
also included in the negative list for service tax.
35. •For homes and flats with a carpet area of
2,000 sq.ft. or more or of a value of 1 crore or
more Or high-end constructions component of
services, rate of abatement reduced from
75 to 70 percent.
•Maintain stability in Tax Regime
36. •Out of 17 lakh registered assesses under Service Tax
only 7 lakhs file returns regularly. Need to motivate them
to file returns and pay tax dues.
•Work on draft GST Constitutional
amendment bill and GST law expected to be
taken forward
