Advance learning on basic concepts & residential status objective of advance learning the advance learning material is designed with an objective to enable the readers to gain. Different taxes in india income tax income from salaries basic concepts what is income from salaries last updated at may 29,. Here is the simplified guide on income tax basics for beginners know about terms like tax year, salary, deductions, medical expenses, heads of income.
Determination of residential status of a taxpayer is very important at the time of filing of income tax return as income tax concepts a person may be an indian. The deadline for filing your income tax returns this year is august 31, which is less than a month away now, for a lot of people, filing tax returns is an exercise that is about as pleasant as. Some very basic terms & their definitions used in context with the indian income tax are given below: assessee - is any person who is required to pay income tax or any other sum payable under the income tax act being interest, penalty etc. Cleariascom is trying to provide an overview of the basic concepts of economics in a simple language for easy understanding the main areas covered are - national income, monetary policy, fiscal policy, and balance of payments(bop.
Its not mandatory for nri to file income tax return in india until his income through rentals and fixed deposit interest is more than basic exemption limit of 25 lakh for year 2015-16, but its good to file because you can claim your money back, which was deducted as tds eg from interest earned in nro fixed deposit. Tax deducted at source (tds), as the very name implies aims at collection of revenue at the very source of income it is essentially an indirect method of collecting tax which combines the. Different taxes in india income tax income from salaries basic concepts what are allowances and perquisites. India has been considering basic income in india on january 31, 2017, the economic survey of india included a 40-page chapter on ubi that outlined the 3 components of the proposed program: 1) universality, 2) unconditionality, 3) agency. Basic concepts on tax systems in india: deductions from your income: exempted incomes: huf - formation, management & tax planning: computation of gross toal income.
Basic concepts for u s income taxes resident taxpayers (us citizens, green-card holders, most students who have state income tax return figures from. Nice initiative by income tax india ,this website saves lots of time and a great step towards digital and cashless india 03-07-2018 ever since cpc was established, submitting returns online has become much easier. Understanding indian income tax law: income tax law basics kindle edition 4financial year and assessment year concept 5understanding forms of income tax returns. Income tax knowledge base basic concepts of income tax - part iii (including dividend on preference share), payable out of such income, within india.
Basic concepts on tax systems in india help a person to understand the concept of income (i) of some basic operations— irrigating and harvesting , sowing. Legal service india - taxing foreign income of company any assessment year under the indian income-tax act, 1922 (11 of 1922), or which is or was assessable or. basic concepts introduction tax is today an important source of revenue for governments in all the countries it has become inevitable imposition because it has great potentials for raising funds for meeting the development and defence needs of a nation. Study aid for beginners about key terms, who are interested in learning about the indian income tax acts & rules.
It generally happens in an agriculture- oriented country like india thus the volume of national income is underestimated income tax department in respect of. Basic concepts of central sales tax by priyanka | mar 2, 2016 | knowledge tank , service tax , start-up & smes , taxes & more | 0 comments central sales tax (cst) is a tax on sales of goods levied by the central government of india. One of the indian company while adopting transfer-pricing concept under cost plus mark up method exporting their services, which are taxable in india, to their ae while arriving the cost they have included service tax paid on input services plus markup and raised invoice accordingly.
An indian company is always a resident in india a foreign company is treated as resident in india if control and management is situated in india in previous year if control and management of its affairs is situated out of india in previous year the it is treated as nonresident ordinarily and not ordinarily status are out of question. Under the income tax act (explanation a to s 6(1)), if an indian citizen leaves india in any year as a member of crew of an indian ship, then instead of 60 days, even if he is india for upto 181 days, he can be a non-resident. 1 basic concepts of indirect taxes unit - 1: introduction income-tax and wealth tax value added tax (vat), etc constitution of india.