By : Paresh ]a!n 97269 24365pareshjain1991@gmail.com

why govt. charges taxGovt. of India provides many kind of services to its resident people or to the non-residents such as infrastructure facility, security etc. and moreover a place where people can earn and live.

In providing these facilities govt. incurs a huge amount of expenditure and to meet those expenditures, Govt. needs funds and there is no specific source from which govt. can generate revenue.

Therefore, we can say tax is a fees charged by the govt. against the services provided.

Govt. major source of revenue is tax (Direct tax and Indirect tax)

CONSTITUTIONConstitution of India is the supreme law i.e. all other law in India has to be consistent with the constitution and if it is not constitutionally valid, it cant be said a legal law.

Article 246 and 248 and schedule vii of the constitution distributes the power to impose and collect taxes between the central govt. and state govt.

15th August 1948 Independence Day on day India Achive Independence.

26th January 1950 Republic Day on day Constitution of india comes into force as governing document india. (B) Tax Slab(Individual/HUF/AOP/BOI/AJP)(60 year and above i.e. Senior Citizens)Tax rate+ 3%Education CessUp to 3.0 Lakhs0%3,00,001 to 5 Lakhs10%5,00,001 to 10 Lakhs20%Above 10 Lakhs30% (A) Tax Slab(Individual/HUF/AOP/BOI/AJP)(Below 60 Year)Tax rate+ 3%Education CessUp to 2.5 Lakhs0%2,50,001 to 5 Lakhs10%5,00,000 to 10 Lakhs20%Above 10 Lakhs30% (C) Tax Slab(Individual/HUF/AOP/BOI/AJP)(80 year and above i.e. Very Senior Citizens)Tax rate+ 3%Education CessUp to 5 Lakhs0%5,00,001 to 10 Lakhs20%Above 10 Lakhs30% (D) Tax Slab (Firm/Limited Liability Partnership/Local Authority)Tax rate+ 3%Education CessOn the whole of total income30% (E) Tax SlabCo-operative SocietyTax rate+ 3%Education CessUp to 1000010%10,001 to 20,00020%Above 20,00030% (F) Tax Slab (Company)Tax rate+ 3%Ed. CessSurchageDomestic Company30%5 % if total income exceeds to Rs. 1 crore

Foreign Company (other than Domestic Company)40%2 % if total income exceeds to Rs. 1 crore

All revenue receipts are taxable unless specifically exempted and All capital receipts are exempt unless specifically taxable.

Income tax act gives inclusive definition of Income and includes (i) Profits and gains

(ii) Capital gains

(iii) Dividend income

(iv) Capital gains

(v) Winning from lotteries etc.

(vi) Allowances and perquisites etc.

Generally, Income from transfer of the revenue generating asset (i.e. the right which generates income) will be capital receipt and income from the product arises out of that asset will be revenue receipt. for Eg.

1. Income from sale of shares will be capital income and dividend income arises out of it will be revenue income.

2. Income from transfer of house property will be capital income and rental income arises out of it will be revenue income.

3. Income from transfer of machine will be capital income and sale of product arises out of machine will be revenue income.

4. Compensation on voluntary retirement compensation is capital income and salary income is revenue income. As per golden rule of income tax we can conclude that all receipts are not assessable to tax. All receipts by an assessee can not necessarily be deemed to be the income of the assessee for the purpose of the income tax and the question whether any particular receipt is income or not depends on the nature of the receipt and scope read with residential status of person. 1. Income may be in cash or in kind.

2. Illegal incomes are also subject to tax.

3. Income must come from outside

4. Contingent income will not form part of income.

5. Method of accounting is only applicable for PGBP and IOS income. For other heads of income act provides specific charging section.

15A. Detrmination of Residential StatutsB. Heads of Income1.) Income from Salary XXX2.) Income from House Property XXX3.) Income from Business/Profession XXX4.) Income from Capital Gains XXX5.) Income from Other Sources XXXC. GROSS TOTAL INCOME (Sec. 14) XXXLess:Deductions u/s chap-VI-A (Sec.80C to 80U) (XXX) D. TOTAL INCOME [Sec.2(45)] XXXE.Tax Due (As Per Slab) XXXLess:Rebates and Reliefs u/s Chap-VIII (XXX)F. Tax Payable XXXIndia : includes- (i) The territory of India (it means the land mass of India and Territorial waters/EEZ means the sea area.)(ii) Its territorial waters and an area of exclusive economic zone.

Income tax : The direct tax paid by the person whose income is more than maximum exemption limit prescribed

Income Tax Return : Annual statement of income received and taxes paid in Previous F.Y.

Assessee : person by whom tax, penalty, interest etc. payable under Income Tax Act 1961.

Financial Year : 1st April to 31st March

Asssessment year : Year following F.Y. in which assessment of Income & tax is made

Previous year : the financial year immediately preceding the assessment year.

Person : includes seven kinds of persons as below:- 1. Individual (Individual means a natural person i.e. a male, female, minor, idiot or lunatic) Analysis- However the income of a minor is generally included in the income of parent. Assessment of Lunatic or idiot is done through representative assessee. 2. Hindu undivided family (HUF) - HUF has not been defined under the act however it means a family which consist of all persons lineally descended from a common ancestor. (for ex- joint family business) 3. Company - Company includes both Indian company as well as foreign company. 4. Firm - Firm means partnership firm (including limited liability partnership firm) but there must be a partnership deed to assess the income in the name of a firm.

5. Association of persons(AOP) : If a group of persons Works together voluntarily without any partnership deed then it will be called As AOP.

6.Body of individuals(BOI) : If a group of individuals works together By operation of law without partner

7. Local authority - Local authority means a authority which is responsible for the local maintenance of a place falls under his jurisdiction For eg.- Municipal committee of Delhi (MCD), Panchayat, and cantonment board etc.

8. Artificial juridical person (AJP) -Artificial juridical person means a person which is not natural but is a legal person in the eyes of law (ICSI, Delhi University etc.)

PAN CARD : it is issued by the Indian Income Tax department for the purpose of financial identification and Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change during lifetime of PAN holder.

Form 16 : This form carries details of Salary Income and Income tax deducted by employer.

Form 16A : The certificate that mentions TDS on income from sources other than salary.

Form 26AS : Annual Tax statement on Tax information network of Income tax department.

Form 15G : Declaration under section 197A(1) and section 197A (1A) of the Incometax Act, 1961 to be made by an individual or Person (not being a company or firm) claiming certain receipts without deduction of tax.

Form 15H : Declaration under section 197A(1C) of the Incometax Act, 1961 to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax.

E-FFILLINGThe process of electronically filing Income tax returns through the internet is known as e-Filing.

Forms 1 to 7 are avilable on www.incometaxindiaefiling.gov.in

For Individuals, HUFSelect appropriate Income Tax Return (ITR) Preparation SoftwareITR-1ITR-2AITR-2ITR-3ITR-4ITR-4SIndividualIndividual& HUFIndividual& HUFIndividual& HUFIndividual& HUFIndividual& HUF

(Who is a partner in firm)1Income from Salary/Pension2Income from Other Sources (only Interest income or Family Pension)3Income/Loss from Other Sources4Income/Loss from House Property5Capital Gains/Loss on sale of investments/property6Income from Proprietary Business/Profession7Income from Presumptive income u/s 44AD or 44AE FORM- 1,2A,2,3,4,4SFor Association of Persons (AoP), Body of Individuals (BoI), Local Authority, Companies, Trusts, Fringe Benefit Tax (FBT) ReturnSelect appropriate Income Tax Return (ITR) Preparation SoftwareITR-5ITR-6ITR-7Firms, AoP, BoI, LA,AJP, Co operative Bank & society.Companies (Except u/s 25Companies).Trusts1.Any Income FORM- 5,6,7

E-ffilling process Advance taxPAYMENT OF ADVANCE TAXDue Date for PaymentAdvance tax amount to be paid till date(Other than Company)(Company)15/06/2015.NIL15% of assessed tax15/09/2015.30% of assessed tax45% of assessed tax15/12/2015.60% of assessed tax75% of assessed tax15/03/2016.100% of assessed tax100% of assessed taxTax is Paid in Advance when Tax Liability is More than 10,000.

Advance Tax is Paid in the Previous Year Itself, Thus the Tax is Paid in the year of Earning Income Itself

The Tax is Paid as income is earned

This Scheme of Advance Payment of Tax is also Called as Pay as you earn income Tax deduct at Sources (tds)TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account.

The concept of TDS envisages the principle of "pay as you earn".

It facilitates sharing of responsibility of tax collection between the deductor and thetax administration.

Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.

Every deductor is required to obtain a unique identification number called TAN (Tax Deduction Account Number) which is a ten digit alpha numeric number e.g.DELH90468K.

Use correct form to file TDS/TCS Returns They are:Form 24Q :-For salariesForm 26Q :-For non salariesForm 27EQ :-For TCSForm 27A/27B :- Control sheet for electronic TDS/TCS

TAX DEDUCTED AT SOURCE (TDS)PeriodDue Date for PaymentDue Date for ReturnInterest RateInterest calculated fromPenalty for Late FilingApr-1407/05/2015.15/07/2015.1.5% p.m.Date of Deduction OR Date of Payment Whichever is earlier.Rs.. 200 per day till the return is filed or maximum upto TDS amountMay-1407/06/2015.Jun-1407/07/2015.Jul-1407/08/2015.15/10/2015.Aug-1407/09/2015.Sep-1407/10/2015.Oct-1407/11/2015.15/01/2016.Nov-1407/12/2015.Dec-1407/01/2016.Jan-1507/02/2016.15/05/2016.Feb-1507/03/2016.Mar-1507/04/2016.Use challan no. 281 for depositing TDS amount.

The process of filing of e-TDS /e-TCS returns is available in detail at following websiteswww.incometaxindia.gov.inorhttp://tin-nsdl.com.

service taxSERVICE TAX (ST)Due Date for Payment(Other than Company)Due Date for Payment(Company)Due Date for ReturnInterest RateInterest calculated fromPenalty for Late FilingPeriodApr-1405/07/2015.05/05/2015.25/10/2015.18%p.a. who is liable for Audit & 15%p.a. who is not liable for Audit (Daywise Interest)From the Due Date of paymentUpto 15 days Rs..500/-Upto 30 days Rs.1000/- & thereafter Rs..100/- per day, Maximum of Rs..20,000/-May-1405/06/2015.Jun-1405/07/2015.Jul-1405/10/2015.05/08/2015.Aug-1405/09/2015.Sep-1405/10/2015.Oct-1405/01/2016.05/11/2015.25/04/2016.Nov-1405/12/2015.Dec-1405/01/2016.Jan-1531/03/2016.05/02/2016.Feb-1505/03/2016.Mar-1531/03/2016.Service Taxis a tax imposed byGovernment of Indiaon services provided inIndia.

The service provider collects the tax and pays the same to the government.

It is charged on all services except the services in the negative list of services.

The current rate is 14.36% on gross value of the service. Value added tax (vat)VAT & CSTPeriodDue Date (Monthly)Due Date (Quarterly)Due Date (Half-Yearly)Interest RateInterest calculated fromPenalty for Late FilingApr-1321/05/2013.21/07/2013.30/10/2013.15% p.a. (Day-wise Interest)From the Due Date of PaymentRs..5000/- Per Return (i.e. Vat & CST Separately)May-1321/06/2013.Jun-1321/07/2013.Jul-1321/08/2013.21/10/2013.Aug-1321/09/2013.Sep-1321/10/2013.Oct-1321/11/2013.21/01/2015.30/04/2015.Nov-1321/12/2013.Dec-1321/01/2015.Jan-1421/02/2015.21/04/2015.Feb-1421/03/2015.Mar-1421/04/2015.Avalue added tax(VAT) is a form ofconsumption tax.

It is to be levied as a proportion of the value added (i.e. sales minus purchase).

VAT will have four broad type of rates. 0% (Exempted) for unprocessed agricultural goods, and goods of social importance. 1% for precious and semiprecious metals. 4% for inputs used for manufacturing goods, capital goods and other essential items. 20% for demerit/luxury goods. The rest of the commodities are taxed at a revenue neutral rate of 12.5%.

TAX STRUCTURE IN INDIA (understand with some daily routine questions/answers) 1)Qus. : What are you doing? Ans. : Business. Tax : PAY PROFESSIONAL TAX!

2) Qus. : What are you doing in Business? Ans. : Selling the Goods. Tax : PAY SALES TAX!!

3) Qus. : From where are you getting Goods? Ans. : From other State/Abroad Tax : PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI!

4) Qus. : What are you getting in Selling Goods? Ans. : Profit. Tax : PAY INCOME TAX!

5) Qus. : How do you distribute profit ? Ans : By way of dividend Tax : Pay dividend distribution Tax

6) Qus. : Where you Manufacturing the Goods? Ans. : Factory. Tax : PAY EXCISE DUTY!

7) Qus.. : Do you have Office / Warehouse/ Factory? Ans. : Yes Tax : PAY MUNICIPAL & FIRE TAX!8) Qus. : Do you have Staff? Ans. : Yes Tax : PAY STAFF PROFESSIONAL TAX!

9) Qus. : Doing business in Millions?Ans. : Yes Tax : PAY TURNOVER TAX! Ans : No Tax : Then pay Minimum Alternate Tax

10) Qus. : Are you taking out over 25,000 Cash from Bank? Ans. : Yes, for Salary. Tax : PAY CASH HANDLING TAX!

11) Qus.: Where are you taking your client for Lunch & Dinner? Ans. : Hotel Tax : PAY FOOD & ENTERTAINMENT TAX!

12) Qus.: Are you going Out of Station for Business? Ans. : Yes Tax : PAY FRINGE BENEFIT TAX!

13) Qus.: Have you taken or given any Service/s? Ans. : Yes Tax : PAY SERVICE TAX!

14) Qus.: How come you got such a Big Amount? Ans.. : Gift on birthday. Tax : PAY GIFT TAX! 15) Qus.: Do you have any Wealth? Ans. : Yes Tax : PAY WEALTH TAX!

16) Qus.: To reduce Tension, for entertainment, where are you going? Ans. : Cinema or Resort. Tax : PAY ENTERTAINMENT TAX!17) Qus.: Have you purchased House? Ans. : Yes Tax : PAY STAMP DUTY & REGISTRATION FEE !

18) Qus.: How you Travel?Ans. : Bus Tax : PAY SURCHARGE!

19) Qus.: Any Additional Tax?Ans. : Yes Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL & SURCHARGE ON ALL THE CENTRAL GOVT.'s TAX !!!

20) Qus.: Delayed any time Paying Any Tax? Ans. : Yes Tax : PAY INTEREST & PENALTY!

21) Qus.: Indian : Can I Die Now ?Ans. : Wait, we are about to launch the funeral tax!!!Thank YoUParesh ]a!n97269 24365pareshjain1991@gmail.com