what is income tax ?
PERSON A Person, corporations or other legal entities, whose earned Income in India, exceeds a prescribed limit has to pay tax ASSESSMENT YEAR AND PREVIOUS YEAR Previous Year is the Financial Year ending on 31st March every year. Assessment Year is the period of 12 Month…
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INCOME TAX
income tax is a very important direct tax. It is an important and most significant source of revenue of the government. The government needs money for to maintain law and order in the country, safeguard the security of he country from foreign powers and promote the welfare of t…
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TAX AVOIDANCE
TAX AVOIDANCE tax avoidance is an act of dodging tax without breaking the law. It means when a taxpayer arranges his financial activities in such manner that although it is within the four corners of tax law but takes advantages of loopholes which exists in the tax law for re…
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RESIDENTIAL STATUS OF AN INDIVIDUAL
As per section 6, an individual may be (a) resident and ordinarily resident inIndia, (b) resident but not ordinarily resident in India, or (c) non-resident in India. BASIC CONDITIONS TO TEST AS TO WHEN AN INDIVIDUAL IS RESIDENT IN INDIA - Under section 6(1) an individual…
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RESIDENTIAL STATUS
The following norms one has to keep in mind while deciding the residential status of an assessee: 1. Different taxable entities - All taxable entities are divided in the following categories for the purpose of determining residential status: a. An individual; b. A Hindu undivided f…
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PROFITS AND GAINS OF BUSINESS OR PROFESSION
Profits and gains of any business or profession carried on by assessee at any time during previous year. Compensation or other payment due to or received by any person – (a) managing whole or substantially whole of affairs of an Indian company or any other company in India at or…
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TAX PLANNING
the goal of tax planning is to arrange your financial affairs so as to minimize the taxes, there are three basic ways to reduces taxes, and each basic method might have several variations. Tax can be minimized by taking advantage of deductions,exemptions,rebate and relief. Fo…
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