What Is Income Tax-
What are Income Tax and Income What is the Tax Limit? Many such questions would come to your mind. And you might also want to know about Income Tax. Because at the moment everything is subject to income tax. And if you don't know. What is income tax and when is it levied. Therefore you will not be able to pay income tax on time and you may incur certain interest and penalties.
In this article, We will provide you with information about Income Tax after which you will be fully friends with Income Tax First, we will learn about the types of taxes. What are the types of taxes?
Types of Tax-
{There are two types of taxes.}
(1) Direct Taxes - Direct Taxes include Income Tax. Because income tax is paid directly by you to the government.
(2) Indirect Tax - Indirect Tax includes Sales Tax, Service Tax, VAT, Income Tax, Income Tax, etc is included. Because in this you do not pay the tax directly to the government. Rather you pay tax on it. who issues bills He does it and through that, the tax is paid to the government.
What is Income Tax-
It has a simple meaning. That is, income tax means that whatever income you make, on that income you will have to pay tax at the slab level. To determine the amount of tax on your income, your situation is first assessed. As if you are an individual, firm, or company. Because the tax rate on all these is different.
The slab rate of income tax is applicable for individuals and HUFs. Whereas companies and firms are taxed at a certain rate. In this article, we will discuss only Individual and HUF taxation.
Basic Concept of Income Tax-
To understand what Income Tax is for the better, we need to know the meaning of some words.
As if- assessee means a taxpayer who pays taxes and any other fees in terms of the Income Tax Act.
Financial Year (F.Y.) - A financial year is a year in which revenue is generated. Occurs on 1 April to 31 March. Example- Suppose you receive any income in July 2016, your financial year will be from 1 April 2016 to 31 March 2017 (F.Y. 2016-17)
Assessment Year (AY) - The income earned by you in a financial year is taxed in the assessment year. a. A.Y. It is the year that starts after the end of the financial year. The assessment year 2017-18 (from 1st April 2017 to 31st March 2018) for the financial year 2016-17 will be.
Source of Income-
There is a simple answer when it comes to income tax. This is where your total income exceeds the basic release limit. A person earns money in different ways in a financial year. Divided into separate heads according to income tax. And according to those articles, your Income Tax Return (ITR) form is determined. Who sends it in the testing year. By choosing the wrong ITR form, your refund may be invalid, so you must show your income in the correct order. For more information on Income Tax returns, you can read Common Reimbursement, Loss Reimbursement, and Combined Reimbursement U / S 139 of the Income Tax Act 1961.
There are various heads of income such as-
Income from Salary – This includes income from salary, allowances, perquisites, pension, gratuity, etc. is included.
Income from house property – This includes income from letting out house property.
Profits and gains in business and profession - If you do any business or are a professional person then your income will come under this head.
Capital Gains - Income arising from the transfer of any capital asset will fall under this head.
Income from other sources - Income that will not come under any head will come under this head such as - Interest, Dividend, F.D. Interest Etc.
Income Tax Slab Rates-
1. Tax Slab of Men & Women (who are less than 60 years)
Income tax slab Income tax rate
1. Up to 2,50,000 Nil
2. From 2,50,001 to 5,00,000 5% on income above 2,50,000
3. From 5,00,001 to 10,00.000 20% on income above 5,00,000
4. More than 10,00,000 30% on income above 10,00,000
2. Tax Slabs of Senior Citizens (Above 60 years but below 80 years)-
Income tax slab Income tax rate
1. Up to income of 3,00,000 Nil
2. From 3,00,001 to 5,00,000 5% on income above 3,00,000
3. From 5,00,001 to 10,00,000 20% on income above 5,00,000
4. More than 10,00,000 30% on income above 10,00,000
3. Tax Slab of Senior Citizens (above 80 years)-
Income tax slab Income tax rate
1. Up to income of 5,00,000 Nil
2. From 5,00,001 to 10,00,000 20% on income above 5,00,000
3. Above 10,00,000 30 % on income above 10,00,000
Note- These slab rates will be applicable from the assessment year 2018-19, instead of the 5% rate for the assessment year 2017-18, a 10% rate will be applicable.
If your income exceeds this limit without claiming a deduction in any financial year So you have to file the return. For this, you can read the article What is the Income Tax Limit.
1. Clubbing of Income-
What does clubbing the income mean? Any other person's income that will be added to your income and tax will be paid by you. For this, you can read the clubbing of income article.
2. Deduction-
When the amount of revenue is calculated. So after this, he is given released from arrest. And revenue comes after deducting deductions. Taxed at the slab rate. For this, you can read the Article 80C draw. And if another TDS is deducted from your income then that revenue will be deducted from your taxable income and your income balance will be taxed. If your income is below the basic release limit and TDS is deducted from your income, you may want to be reimbursed by completing the ITR.
Conclusion:-
Friends, we hope you enjoyed our post. So give your feedback in the comments. if you have a question or suggestion. So you can ask through ideas. Thanks for staying with Manish Tech!
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