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 .


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