Wednesday, May 10, 2017

Tuesday, October 20, 2009

How to Calculate income tax of Individual

Calculation of income tax of individual is full based on the assessment which an assessee can do himself or take the help of CA or advocate. If you want to calculate your income tax liability by yourself , then . First of all calculate your different incomes in the following heads .
1. Calculate total incomes under the head of salary less deductions of gross salary according to current finance bill .
2. Calculate total rent earning .
3. Calculate total business or profession earning less expenses which are allow under income tax law 1961.
4. Calculate the income from capital gain . In this income we can include earning from sale of shares and debentures also .
5. Calculate any other income .

Now first deduct section 80 deduction and calculate pure income and calculate your tax under tax slab . and deduct after any rebate . After this you can deposit your tax to bank account by income tax challen and return can be deposited in income tax department .

Sunday, July 12, 2009

New Amendment in Section 194 I of TDS

TDS under 194 I is relating to payment of Rent more than Rs. 120000 annually in Finance bill 2008 , it was the duty of individual to deduct tax of 15 % of rent and deposit in Govt. account and other can deduct 20% of rent of building

Now , in finance bill July 2009 Govt. of India thinks that it is very doubtful for all parties , So , Govt. of India has amended this provision . Now all person who pay rent , are responsible to deduct tax at source 10% of rent and deposit it in Govt. account .

Saturday, July 11, 2009

New deduction for National housing bank ( NHB )

NHB is wholly owned by RBI and Govt. of India has provided new deduction for this bank . From 1st April 2010 , NHB has right to get deduction of 20% of net profit for paying income Tax . Finance manager has provided this deduction due to watching its social and promotional works relating to finance of House construction in rural area.

Suppose NHB earn Rs. X profit
Now after Ist April 2010

Less deduction = X X 20/100
Taxable profit for payment of Tax = xxxxx

Friday, July 10, 2009

New amendments of Charging Income tax on Tea business

Union budget 2009-10 has made some amendments for charging income tax on tea business. If you are doing tea business . Then , you have to deduct 10% depreciation on total sale proceed of tea. After this you can deduct other expenses. For income tax purpose , 60% of balanced amount is not chargeable to income tax .
We can explain it with example
Sale proceeds of tea business = Rs. 1000
less depreciation on sale proceed
(10% ) = Rs. 100
balance = Rs. 900
less other expenses = Rs. 300
balance = Rs. 600
less 60% of this balance = Rs. 360
Income subject to charge under IT act = Rs. 240

Sunday, June 28, 2009

No tax upto 220000 earning of senior citizen

If you are senior citizen and your age is more than 65 , then your earning of 220000 is out of from any income tax liability . According to new rates of income tax . Senior citizen's pension is only taxable if it is more than Rs. 220000 . But in both situation , senior citizen has to file return in assessment year 2009 to 2010 .

Sunday, February 22, 2009

System of preparation of Income tax

System of calculating and preparing of income tax is very scientific . For calculating income tax , we collect all incomes of a person . It may received from salary , house buildings , business and profession and rest will include in other incomes .
After this, we deduct different deductions from his total income which are valid under income tax laws . After this we calculate income tax . When we calculate income tax , then we deduct different rebates out of income tax which are provided under income tax laws . After above procedure , we calculate and prepare our income tax .
Moreover , we deduct tds or advance tax out of total tax liability and net amount of tax liability will deposit in the accounts of income tax department . If advance or tds is more than total tax liability , then income tax authority will refund , your extra income tax to you .

Tuesday, February 17, 2009

Video on VAT dicussion

Value added tax - List of Informational pages

  1. Value Added Tax , its history , feature and calculation
  2. How to get Vat form from tally 7.2
  3. Video on VAT dicussion

Value Added Tax , its history , feature and calculation

Definition of Value added tax

" Value added tax ( generally known VAT ) is a sale tax and it is payable when a businessman sells goods to his customer . VAT is on the price which is added in purchase or raw material . Businessman has facility to deduct VAT ( Input ) out of VAT Output . Then he is liable to deposit net VAT to Govt. account . "

History of VAT
  1. VAT is applied first in mid 1960 in Brazil .
  2. VAT is started in European countries in 1970 .
  3. After this 130 countries accepted VAT .
  4. In India VAT on sale stage applied in 2005 . VAT at manufacturing stage is already in India for 18 years in the form of Mod VAT .
  5. Now , 145 countries has given acceptance for VAT .

Feature and Benefits

  • It is just conversion of sale tax , earlier business paid sale tax and now pays VAT .
  • It comes in existence due to defects of sale tax because sale tax law provide double tax burden on businessman .
  • Saving of businessman due to a set off is given for input Tax .
  • Overall tax burden will be rationalised .
  • Price will decrease with ending of cascading effect .
  • Simplicity
  • Higher revenue growth

So , Now you want to learn how to calculate VAT , then see below table and learn the simple system of Calculation of VAT

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