BASIC OF INCOME TAX

Hello Friends,

My this blog is related to tell you all about Income Tax. Income Tax is tax on Income. Income includes salary, pension, business income, interest income etc. Taxes are the main source of Revenue to the Government which will be utilized for meeting the expenses of the government as well as to carry out development work.


Taxes are of two kinds:

Direct Taxes: Direct Taxes are taxes on income or profits which will be paid by the taxpayer to the Government directly e.g. Income Tax, Wealth Tax,  Property Tax etc.

Indirect Taxes: Indirect taxes are taxes on goods and services and is collected by someone else on your behalf and paid to the Government like theaters, restaurants etc.

In India, Income Tax related Rules,  Regulations, provisions, Slabs and Tax rates etc. are governs as per the Income Tax Act 1961.


Who can be Taxpayers?

As per Income Tax Act , Income Tax will be paid by the following persons:
  • Individual e.g. Ramesh, Suresh, Sita etc.
  • Hindu Undivided Family (HUF)
  • Firm
  • Company
  • Association of Persons (AOPs)
  • Body of Individuals (BOI)
  • Local Authority
  • An Artificial Judicial Person
What is Income?

Income includes all receipts in the hands of the Taxpayer in the form of cash or non cash benefits and personal expenses paid on behalf of taxpayer. Income Tax Department classifies Income in the following heads:
  • Income from Salary: Income from salary and pension 
  • Income from House Property:This is rental income mostly
  • Income from Business and Profession: This is when you are self-employed, work as a freelancer or contractor, or you run a business. Life insurance agents, chartered  accountants, doctors and lawyers who have their own practice, tuition teachers
  • Income from Capital Gains: Income from sale of a capital asset such as mutual funds, shares, house property
  • Income from Other Sources: Income from savings bank account interest, fixed deposits,winning KBC

I hope it will be helpful to you.

Thanks and Regards
Kulvinder Kaur
B.Com(H), MBA(Finance)

9871580806,8826566751
rightsteptoinvest@gmail.com



Comments

Post a Comment

Popular posts from this blog

AN INITIATIVE TO TAKE A RIGHT STEP

Image
Hello Friends,  This is my first post and need your support to grow.  I am working as a Financial Advisor  and Tax Consultant.   I would like to suggests you that just take   A Right Step: To Save  To Plan  To Invest To make your money grow  and this will help you To move a right step about your financial planning and growth .  Thanks & Regards Kulvinder   Kaur B.COM(H), MBA(Finance) 9871580806,8826566751 rightsteptoinvest@gmail.com
Read more

IMPORTANCE OF BUDGET

Image
Hello Friends, My this blog is related to tell you about the Importance of Budget.  "Budget is a plan in which you decide how to spend money  systematically." Let's take a simple example and starts from your home: Rahul is a married man with two kids earns Rs. 35,000 in a month and get on the 10th of a month and starts spending it in various expenses like bring a ration, pay for school fees, buying vegetables, buy some clothes, pay some medical expenses etc. and at the 25th of the month he already spend Rs. 28,000 and only Rs. 7,000 left with him without any savings for rest of the month and then he worried that how to spend for rest of the month.  Ramesh is a married man with two kids earns Rs. 35,000 in a month and gets his salary on the 10th of a month and makes a budget and spend accordingly and at the end of the month he has left some money as a savings which he uses as an investment as well as for emergency.  In the second examp...
Read more

HAPPY NEW YEAR 2020

Image
Hello Friends , Happy New Year 2020.  Happy New Year is a word which means a coming year will be happy for all of us and gives all the happiness and good wishes for all that our dreams come true.  Yes, So I will give you a secret mantra for all the successful years ahead which makes you happy in all years ahead of your life.  Just take a Right Step: To secure your income. To secure your Life. To secure your loved ones.  To secure your Present as well as Future. Thanks and Regards Kulvinder Kaur
Read more