Beruflich Dokumente
Kultur Dokumente
of
Direct Taxes
Faculty
Income Tax Department Training CentreDelivering lectures on tax to Income Tax Officers.
Visiting
Managing
Because
Tax
is
consideration
for
business decisions.
an
any
important
strategic
Because
Because
Understanding
Analyzing
Coverage
International
Taxation :
Avoidance of
Double
Taxation
Residential
Status and Tax
Incidence .
Tax Collection
Mechanism-TDS,
Advance Tax
Scheme of Tax
Calculation :
Rules for
Taxation of
Different Types
of Income
Tax treatment
of Different
Investment
AvenuesMutual
Fund/Equity
Market/Fixed
Income
Securities
Tax Aspects of
Employee
Compensation
Package, Tax
Deductions
Income Tax
Provisions To
Check
Avoidance Of
Tax
Scheme of Tax
Calculation
5 Heads Of Income
Income
from
House
Property
Income
from
Salary
Profits And
Gains Of
Business
And
Profession
Gross
Total
Income
(G.T.I.)
Capital
Gains
Income
From
Other
Sources.
G.T.I.,
certain
deductions
(called
deductions
under Chap. VI-A) are
allowed and Taxable
Income is calculated.
This
the
Taxable Income is
called "Total Income"
in the Income-tax act.
G.T.I.
Tax
Deduction
s
Taxab
le
Incom
e
Tax Calculation
1
2
Basic
Tax
3
Surcharge/
(Rebate)
4
Cess
Tax
Payabl
e
Previous
Year
Assessm
ent Year
Year immediately
next to the previous
year. Year in which
income is taxed.
Concept of Year
Normal
rates
Rates
for
for Rates
Resident
Resident
Senior
Very Senior
Citizens
Citizens
Age 60 to 80
Age + 80
RATES
OF TAX
0%
Upto Rs.
3,00,000
Upto Rs.
5,00,000
10%
Rs. 2,50,001 to
5,00,000
Rs. 3,00,001
to 5,00,000
--
20%
Rs. 5,00,001 to
10,00,000
Rs. 5,00,001
to 10,00,000
Rs. 5,00,001
to 10,00,000
30%
More than
Rs.
10,00,000
Lottery Income30%
Specified Short
Term Capital
Gains- 15%
individual who
is resident in India
and
whose
Total
lower
following :
of
Surcharge
a
When Total Income of an
surcharg
individual
is more than Rs.
1 crore,
e is
payable
@ 10%
of Tax
Cess
Education Cess =
@2%
Apart from tax
and surcharge,
following 2 cess
are also payable
Secondary and
Higher Education
Cess (SHE Cess)=
@ 1%
Cess
Rate of
Tax
30% flat
Surchar
ge
Exercise
Calculate the amount of Income tax
payable in following cases#
Tax Payer
Taxable Income
20,00,000
1,20,00,000
5,00,00,000
12,00,00,000
Summary
of
Discussion
For tax calculation, all income are segregated into 5 heads o
Mr.
hasincome
earned
HowAmit
all these
shallfollowing
be subjected to
income
tax?
income during
the previous
year :
Income From
Salary
if some thing
is called salary but
there is no
employee
employer
relationship (e.g. in
case of salary of
partner in a
partnership firm),
this is not taxable
under the head
salary.
Income From
House Property
Example
Solution
Deduction of Interest
Deductions: Revenue
Expenditure
For calculating once business
income, any revenue expenditure
which has been incurred wholly
and
exclusively
for
the
purpose
of
business/profession
may be
claimed deduction.
Revenue Expenditure
Depreciation
Depreciation
Treatment of Loss
In case of loss in any business, it is treated as follows :
Capital Gains
Capital Gains
Any profits or gains arising from
Exceptions
Computation of Capital
Gains: Concept Of
Indexation
Indexed cost of
acquisition
Cost Of
Acquisition/
Cost of
Improvement
Index of Year of
Transfer
X
Index of Year
of Purchase
Treatment of Loss
A long term capital loss can be set off with any other long term
Income From
Other Sources
Session complete
and securities,
Jewellery,
Archaeological collections,
Drawings,
Paintings,
Sculptures, or
Any work of art.
Bullion
Exclusions
Receipts from :
Any local authority as defined in the
Explanation to Sec. 10 clause (20).
Any educational or medical
institution or other entities referred
to in Sec. 10 clause (23C).