Also, the different heads of Income under which income tax is chargeable are as follows: Income that is in the form of capital gains. Section 80E by .
Taxable income between Rs.3, 00, 000 and Rs.5, 00,000. Corporate tax is applicable to companies who exist as separate entities from their shareholders. Flexibility: The law has been created in such a way that can accommodate the changes and requirement of a growing economy without having to constantly resort to amendments. Corporate tax includes Minimum Alternative Tax (MAT) which was introduced to bring Zero Tax companies under the income tax bracket and whose accounts were made as per the Companies Act.
The long term capital gains are taxed at 20% in case it is computed with the benefit of indexation. Anonymous Novice Asked on March 9, 2016 in Legal. (6) Travelling expenses incurred in connection with the job. Minimum Alternate Tax (MAT) Learning Materials For Marketing, Insurance And Business. Save my name, email, and website in this browser for the next time I comment. It is productive in nature because amount of tax increases according to the increase in the income of tax payer. © Copyright Aapka Consultant All Rights Reserved. Direct taxes such as corporation tax or profit tax, if they are too high can discourage people from investing in businesses since they know that a lot of the profits they shall make will go into taxes. West Bengal Commercial Tax, Section 80C
In Income tax, people with higher incomes are charged higher percentages of tax while those with extremely low incomes are often exempted from tax altogether. A good tax system must contain the majority of such taxes which produce good effects on production and equitable distribution of national income and wealth. (iii) These are allocated or charged in total amount to cost centres or work orders. 5% of the amount by which the taxable income exceeds Rs.3,00,000. A Single code for direct taxes:A single unified taxpayer reporting system can be facilitated by bringing all direct taxes under a single code with unified compliance features. 286/2002 (Article 5.2). Ltd. : Unit B2-601, Boomerang, Chandivali Farm Road, Near Chandivali Studio, Andheri East, Mumbai - 400072, Licence No. This is an important feature of all direct taxes, because it means that the taxpayer cannot shift the burden onto anyone else. The following taxes are imposed directly and applicable to all Indian citizens. For example, property tax is paid by the owner of the property. Note: Income Tax is levied differently for different people depending on their residency status. Form 26AS Conveyance Allowance Citizen Health Insurance, Pradhan What is EPF? This means that direct taxes cannot be shared or passed on to other parties. Key differences between Direct Tax & Indirect Tax are: The burden of tax cannot be shifted in case of direct taxes while burden can be shifted for indirect taxes. The DTC or Direct tax code has been drafted to replace the existing Indian Income Tax Act of 1961.
It is the tax levied directly on personal income. Section 87A Scope Every tax includes a set of economic activities and individuals to whom the tax applies, and that defines the overall scope of the tax.