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​INCOME TAX SYSTEM IN INDIA

  • Income Tax Implementation In India,
  • There are two types of taxes: one is a direct tax levied directly on the income of the individual, while the other is an indirect tax imposed indirectly on the individual.
  • Direct tax is known as income tax and indirect tax is defined as goods and services tax, service tax, etc.
  • Under the Income Tax Act, 1961, each person earning income in India is subject to income tax. There can be income from five different heads under the Income Tax Act, which are income from employment, household property, capital gains, business and occupation, among other sources. The Income Tax Act taxes the income of individuals, undivided Hindu households, individual organisations, individual businesses and firms.
  • Income Tax Return Income Tax Return is a document in which a taxpayer discloses specifics of his income, claims exemptions and deductions, and the amount of tax payable on such earnings, whether an individual or a corporation or an undivided Hindu family. The Income Tax Return also suggests the tax amount of the taxpayer.
  • The income tax return is a document in which the taxpayer records the statistics and information of the income and tax payable at the end of each financial year.
  • Income Tax eFiling Income Tax, i.e. the online form and another offline method, can be paid. All income tax returns must now be submitted through the ITR eFiling Process, as per the Government Orders.
  • In the following cases, ITR Online eFiling is also mandatory-1) if your taxable income is more than 5 lakh rupees per year or if you want any repayment.
  • 2) if your accounts need to be audited in accordance with section 44 AB and returned in accordance with ITR 3 or ITR 4 Only this individual can use the offline ITR filing form-1) if your taxable income is less than 5 lakh rupees per year and is not eligible for any refund.
  • 2) Individuals who when filing federal tax returns, are 80 years of age or older.
  • Indian taxation overview: sense of duty: Direct Tax Services
  • In the field of providing Direct Tax Advisory Services, we are a leading name. The Federal, State and Local Government Bodies levy this taxation. Direct tax services are focused on a series of tax reforms that have been enforced since the beginning of the 1990s, focusing on the rationalisation of tax rates and the simplification of procedures. Such taxes are imposed by federal, state and local government agencies and include main taxes, including
  • The Federal Government
  • Tax on companies
  • GST-GST
  • Custom obligations
  • Central duty on excise
  • Charge on Utilities
  • The States
  • State Taxes on Excise
  • Charge on Sales
  • Duties Stamp
  • Bodies of Local Government-
  • Some local taxes, such as water taxes and land taxes,
  • In the form of direct taxes such as sales tax, state excise duty and stamp duties and local government bodies in the form of Octroi duties and other local taxes such as water tax and property taxes, these are imposed by central government by states.
  • We also provide clients with direct tax consultancy assistance based on an emerging tax strategy that optimises tax incidence through the implementation of
  • Incentives for Taxation
  • Tax holidays and advantages
  • Networks for a double tax treaty
  • Usage of intermediary firms
  • Pricing for the move and other options
  • Comprehensive tax preparation for the world
  • Investments inbound and outbound
  • Structuring of remuneration for management
  • Direct Tax enforcement and litigation assistance, International Tax Advice, Transfer Pricing Advisory and Global Institutional Investor (‘FII’) Services are also included in the services other than this.
  • Income tax services We also provide income tax services consisting of taxes on income received in a financial year, part of which is taxable in accordance with the rates laid down for that year. Taxpayers are usually categorised as residents or non-residents with the financial year running from 1 April to 31 March of the following year where individual taxpayers can be classified as residents but not ordinary residents.
  • Our team of tax consultants and financial advisors also enables us to offer income tax advisory services to manufacturers, retailers, dealers as well as industry service providers that are targeted at delivering business solutions.
  • Residential State
  • An person is considered to be resident in India if he is in a tax year in India for:
  • 182 or more days;
  • 60 days or more in which the 60-day duration is changed to 182 days or more
  • Visiting India by Indian citizens/persons of Indian descent
  • Indian people who leave India for jobs abroad as part of the Indian ship crew during the tax year
  • In any tax year a resident is not 'ordinarily resident' in India if he:
  • In nine of the 10 previous years before that year, "non-resident" was "non-resident" in India.
  • Has been in India during the previous seven years, prior to that year for a total duration of 729 days/less
  • Taxability Status-based:
  • Residential State
  • Income Sourced by India
  • Foreign Profits Sourced
  • Inhabitant
  • In India, Taxable
  • In India, Taxable
  • Residents, but generally not residents
  • In India, Taxable
  • Not In India Taxable
  • Non-inhabitants
  • In India, Taxable
  • Not In India Taxable
  • Income Heads
  • Income is listed under five large heads/classes of which the taxable income portion is calculated in accordance with the rules for the individual head/class of income followed by the aggregation for the calculation of total taxable income. They include:
  • Salaries earned against services provided that include salaries, pension, taxes, commission and perquisite taxable value.
  • House property revenue, consisting of income resulting from the use of residential/commercial property. Here when calculating income, only two specified deductions are allowed.
  • Business/profession earnings and profits that cover income earned from business/profession net of allowable deductions against income earned.
  • Capital gains covering gains resulting from the sale of capital assets and the retention period deciding the classification of the asset and then determining the form of taxation. Short-term assets and long-term capital assets compose the earnings.
  • Selling of such stated investments which are subject to taxation and in which the value of the transaction is taxed.
  • Profits from other sources that are residual head/class of revenue that includes all revenue not expressly dealt with under other heads.
  • For the financial year 2015-16 (assessment year 2016-17), tax rates for individuals are as follows:
  • Senior (over 60 years)Senior (over 80 years)Senior (over 80 years)Senior (over 80 years)Rate
  • 0-250,0000-300,0000-500000Nil
  • Rs. 250,001 to Rs. 500,000Rs. 500,000-10 percent to Rs. 300,001
  • Rs. 500,001 to Rs. 1,000,000Rs. 500,001 to Rs. 1,000,000Rs. 500,001 to Rs.1,000,00020%
  • > Rs. 1,000,000> Rs. 1,000,000> Rs. 1,000,00030 percent * Education Cess @ 3% of the Income Tax will be extra imposed.
  • Surcharge @12% is applicable to sales in excess of 10,000,000.
  • International Nationals Governing Rules-
  • Indian tax law includes an exemption for foreign nationals from income earned according to specified conditions. This is based on conditions such as--
  • The stay of individuals in India is not longer than 90 days.
  • Payments made are not deducted from the employer's computing profits
  • Remuneration obtained by an individual working on a foreign ship on condition that his stay in India does not exceed 90 days
  • Remuneration of foreign ambassadors, consular officers, commercial officials and their employees and their families
  • Employee/government contractor profits accepted by international charitable organisations
  • Societies
  • Domestic Company
  • Income-tax @ 25% of overall income
  • Surcharge at the rate of 7% of income tax if gross revenue exceeds Rs. 1 crore
  • Cess Education @ 3% of overall income tax and surcharge
  • Companies
  • Income-tax @ 30 percent of overall revenue
  • Surcharge at the rate of 12% of income tax if overall revenue exceeds Rs. 1 crore
  • Education Cessation of 3% of gross wages and surcharge tax
  • The Tax Kinds
  • The annual tax that is levied on income received in a financial year which is based on the rates declared in the annual budget. The tax is payable in advance by quarterly payments during the financial year with rates varying with each budget.
  • The Minimum Alternative Tax (MAT) is 19,055 percent of book benefit tax imposed. Here if total revenue exceeds Rs. 1 crore, the surcharge is at the rate of 7 percent of the income tax. In addition, the Education Cess is @ 3% of the overall Income-Tax and Supplement.
Imam associates – Best Chartered Accountant in Hyderabad. Imam & Associates are one of the Chartered Accountants participating from the city Hyderabad, India. income tax, income tax return, income tax filing, salary Return, form16