3. Income tax is today an important
source of revenue for government
in all the countries.
More than 3,000 years ago, the
inhabitants of ancient Egypt and
Greece used to pay income tax.
Income-tax was first introduced in
India in 1860 by James Wilson.
TAX
5. TAXATION
Why do Government impose
Taxes????
•Raising money for Government spending
•Redistributing Income
•Social devlopment
•Demand Management
•Correcting Market Failure
7. Taxes can be classified on
the basis of form, nature,
aim and method of taxation.
the most common is to
classify into direct and
indirect taxes.
TYPES OF TAXES
TYPES OF
TAXES
INDIRECT
TAX
DIRECT
TAX
8. Direct taxes...
• A direct tax is a kind of charge,which is imposed directly on
the taxpayer and paid directly to the goverment by the
person on whom it is imposed
• Depending upon his income
• a direct tax in one that cannot be shifted by the
taxpayer to someone else
• directly paid to government
• compulsory
• it is progressive in nature
9. Indirect TAX...
• An indirect tax is tax collected by an intermeditory from
the person who bears the ultimate co economic burden of
the tax .Can be shifted by taxpayer to someone else.
• Increase the price of a good
• Imposed tax on service used by consumer and
collected by service provider
• You have a choice as you dont buy dont pay tax
• Regressive
12. Corporation Tax
The companies and business
organizations in India are
taxed on the income from
their worldwide transactions
under the provision of Income
Tax Act, 1961
13. Property Tax:
Property tax or 'house tax'
is a local tax on
buildings, along with
appurtenant land, and
imposed
on owners
14. GIFT TAX
As per the Gift Act 1958, all gifts
in excess of Rs. 25,000, in the
form of cash, draft, check or
others, received from one who
doesn't have blood relations with
the recipient, were taxable
16. Service Tax
Service Tax is levied on
the gross or aggregate
amount charged by the
service provider on the
receiver
17. Value Added Tax (VAT)
The practice of VAT executed
by State Governments is
applied on each stage of
sale, with a particular
apparatus of credit for the
input VAT paid.
18. Sales Tax
Sales Tax in India is a form of tax
that is imposed by the Government
on the sale or purchase of a
particular commodity within the
country
19. OTHER INDIRECT TAXES
Central excise duty is tax which is charged on such
excisable goods that are manufactured in India and are
meant for domestic consumption
Customs Duty: The Customs Act was formulated in 1962
to prevent illegal imports and exports of goods.
20. INCOME TAX
Income tax is one of the direct tax and it is
levied on the incomes of individuals, HUF,
unregistered firms and other associations of
peoples.
Income tax act was passed in Sep 1961 and
came into force in 1st April 1962.
21. Gross Total Income 5,24,900
Less:
Deductions under Chapter VI A
(a) Deduction under section 80C
Tuition fee paid to university for education 1,00,000
(b) Deduction under section 80D
Medical insurance premium
(maximum allowable upto Rs.15,000) 15,000
(c) Deduction under section 80E
loan taken for any purpoes is deductible 55000 170000
Total income 3,54,900
So the total income is RS.3,54,900
22. COMPUTATION OF TAX LIABILITY
PARTICULARS (%) AMOUNT
(RS)
Total income =RS. 3,54,900
Upto RS.200000 NIL NIL
NEXT RS 200001-500000 10 15,490
(200001-354900)=RS.154900
Add: Education cess @ 2% 309.8
Add: Secondary and higher education cess @ 1% 154.9
TAX PAYABLE (17618.8)
ROUNDED OFF 17,620
23. NIKHIL HAVING TWO
OPTION
1. WITHDRAW MONEY FROM
ACCOUNT
2. TAKE LOAN
ADVANTAGE OF TAKING LOAN=CAR+INTREST ON 10 LAKH+
TAX SAVING NEAR 50K