Download VTU (Visvesvaraya Technological University) MBA 1st Semester (First Semester) 17MBA13 Accounting for Managers AM Unit 6 Important Lecture Notes (MBA Study Material Notes)
Fundamentals of Taxation
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Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
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Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
FirstRanker.com - FirstRanker's Choice
Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
?Heads of Income
??Income?from?Salary
??Income?from?House?property
??Income?from?Capital?gains
??Income?from?Business/?profession
??Income?from?Other?sources
??Concept??of??GTI??(Gross???Total??Income)??and
??Taxable/?Net?Income
FirstRanker.com - FirstRanker's Choice
Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
?Heads of Income
??Income?from?Salary
??Income?from?House?property
??Income?from?Capital?gains
??Income?from?Business/?profession
??Income?from?Other?sources
??Concept??of??GTI??(Gross???Total??Income)??and
??Taxable/?Net?Income
COMPUTATION?OF?NET?INCOME
?
?
Heads?of?Income
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Rs.????????Rs.
1.?Income?from?Salaries xxxx? xxxx
2.?Income?from?House?Property xxxx??????xxxx
3.Income?from?Capital?Gains xxxx??????xxxx
4.?Income?from?Business/?Profession xxxx xxxx
5.?Income?from?Other?sources xxxx xxxx
Gross?Total?Income?(1+2+3+4+5) xxxx xxxx
(-)?Deductions?U/s?80
80C,?80D,?80G,?80?GG,?80GGB,?80GGC,?..?80U ??????xxxx xxxx
?
?
?
Net?Income/?Taxable?Incomexxxx
FirstRanker.com - FirstRanker's Choice
Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
?Heads of Income
??Income?from?Salary
??Income?from?House?property
??Income?from?Capital?gains
??Income?from?Business/?profession
??Income?from?Other?sources
??Concept??of??GTI??(Gross???Total??Income)??and
??Taxable/?Net?Income
COMPUTATION?OF?NET?INCOME
?
?
Heads?of?Income
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Rs.????????Rs.
1.?Income?from?Salaries xxxx? xxxx
2.?Income?from?House?Property xxxx??????xxxx
3.Income?from?Capital?Gains xxxx??????xxxx
4.?Income?from?Business/?Profession xxxx xxxx
5.?Income?from?Other?sources xxxx xxxx
Gross?Total?Income?(1+2+3+4+5) xxxx xxxx
(-)?Deductions?U/s?80
80C,?80D,?80G,?80?GG,?80GGB,?80GGC,?..?80U ??????xxxx xxxx
?
?
?
Net?Income/?Taxable?Incomexxxx
Assessment year
Period?of?12?months?starting?from?1st??April?and?ending?
on?31st?March?every?year
?
Previous year
The? financial? year? immediately? preceding? the?
Assessment?year
FirstRanker.com - FirstRanker's Choice
Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
?Heads of Income
??Income?from?Salary
??Income?from?House?property
??Income?from?Capital?gains
??Income?from?Business/?profession
??Income?from?Other?sources
??Concept??of??GTI??(Gross???Total??Income)??and
??Taxable/?Net?Income
COMPUTATION?OF?NET?INCOME
?
?
Heads?of?Income
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Rs.????????Rs.
1.?Income?from?Salaries xxxx? xxxx
2.?Income?from?House?Property xxxx??????xxxx
3.Income?from?Capital?Gains xxxx??????xxxx
4.?Income?from?Business/?Profession xxxx xxxx
5.?Income?from?Other?sources xxxx xxxx
Gross?Total?Income?(1+2+3+4+5) xxxx xxxx
(-)?Deductions?U/s?80
80C,?80D,?80G,?80?GG,?80GGB,?80GGC,?..?80U ??????xxxx xxxx
?
?
?
Net?Income/?Taxable?Incomexxxx
Assessment year
Period?of?12?months?starting?from?1st??April?and?ending?
on?31st?March?every?year
?
Previous year
The? financial? year? immediately? preceding? the?
Assessment?year
DEDUCTIONS?U/S?80C
?
? Insurance? premium? on? own? life/? spouse?s? life/? children?s?
life? (dep? /? indep? /? minor? /? major? /? married? /? unmarried)? ?
subject?to?10%?on?Sum?assured.?
??Contribution?towards?PPF,?EPF?etc
??Purchase?of?National?Savings?Certificate
??Purchase?of?ULIP?of?UTI,?LIC-?Mutual?fund?etc
??Payment?of?notified?annuity?plan?of?LIC?or?other?insurers
??Subscription?towards?notified?units?of?MFs
??Subscription?to?any?notified?bonds?of?NABARD
??Deposit?in?Sukanya?Samriddhi?Account
FirstRanker.com - FirstRanker's Choice
Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
?Heads of Income
??Income?from?Salary
??Income?from?House?property
??Income?from?Capital?gains
??Income?from?Business/?profession
??Income?from?Other?sources
??Concept??of??GTI??(Gross???Total??Income)??and
??Taxable/?Net?Income
COMPUTATION?OF?NET?INCOME
?
?
Heads?of?Income
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Rs.????????Rs.
1.?Income?from?Salaries xxxx? xxxx
2.?Income?from?House?Property xxxx??????xxxx
3.Income?from?Capital?Gains xxxx??????xxxx
4.?Income?from?Business/?Profession xxxx xxxx
5.?Income?from?Other?sources xxxx xxxx
Gross?Total?Income?(1+2+3+4+5) xxxx xxxx
(-)?Deductions?U/s?80
80C,?80D,?80G,?80?GG,?80GGB,?80GGC,?..?80U ??????xxxx xxxx
?
?
?
Net?Income/?Taxable?Incomexxxx
Assessment year
Period?of?12?months?starting?from?1st??April?and?ending?
on?31st?March?every?year
?
Previous year
The? financial? year? immediately? preceding? the?
Assessment?year
DEDUCTIONS?U/S?80C
?
? Insurance? premium? on? own? life/? spouse?s? life/? children?s?
life? (dep? /? indep? /? minor? /? major? /? married? /? unmarried)? ?
subject?to?10%?on?Sum?assured.?
??Contribution?towards?PPF,?EPF?etc
??Purchase?of?National?Savings?Certificate
??Purchase?of?ULIP?of?UTI,?LIC-?Mutual?fund?etc
??Payment?of?notified?annuity?plan?of?LIC?or?other?insurers
??Subscription?towards?notified?units?of?MFs
??Subscription?to?any?notified?bonds?of?NABARD
??Deposit?in?Sukanya?Samriddhi?Account
? Any sum paid (incl. interest accrued) as subscription to Home
Loan account scheme of National housing bank
? Any public deposit scheme of HUDCO
? Any sum paid as tuition fees for full time education of any 2
children (Indian institutions)
? Principal amount paid towards cost of purchase/construction of
residential property
? Amount deposited as term deposits (5 years or more) in
accordance with a scheme framed by the Govt
? 5 years Term deposits scheme of post office
? Gross qualifying amount or Rs.150000
FirstRanker.com - FirstRanker's Choice
Unit - 6
Fundamentals of Taxation
Tax
??A?compulsory?contribution?(not?voluntary)
??Made?by?a?person
??To?the?state?s?treasury
?
?
Types of Tax
Direct tax- incidence?and?impact-?same?person
?
Ex:?Income?Tax,?Wealth?Tax?etc
?
Indirect tax ????incidence??and???impact-??different?persons
?
Ex:?Sales?tax,?Excise?duty,?Customs?duty,?GST?etc
?
(Incidence-?liability?to?pay?tax,??Impact-?burden?of?paying?tax)
?Heads of Income
??Income?from?Salary
??Income?from?House?property
??Income?from?Capital?gains
??Income?from?Business/?profession
??Income?from?Other?sources
??Concept??of??GTI??(Gross???Total??Income)??and
??Taxable/?Net?Income
COMPUTATION?OF?NET?INCOME
?
?
Heads?of?Income
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Rs.????????Rs.
1.?Income?from?Salaries xxxx? xxxx
2.?Income?from?House?Property xxxx??????xxxx
3.Income?from?Capital?Gains xxxx??????xxxx
4.?Income?from?Business/?Profession xxxx xxxx
5.?Income?from?Other?sources xxxx xxxx
Gross?Total?Income?(1+2+3+4+5) xxxx xxxx
(-)?Deductions?U/s?80
80C,?80D,?80G,?80?GG,?80GGB,?80GGC,?..?80U ??????xxxx xxxx
?
?
?
Net?Income/?Taxable?Incomexxxx
Assessment year
Period?of?12?months?starting?from?1st??April?and?ending?
on?31st?March?every?year
?
Previous year
The? financial? year? immediately? preceding? the?
Assessment?year
DEDUCTIONS?U/S?80C
?
? Insurance? premium? on? own? life/? spouse?s? life/? children?s?
life? (dep? /? indep? /? minor? /? major? /? married? /? unmarried)? ?
subject?to?10%?on?Sum?assured.?
??Contribution?towards?PPF,?EPF?etc
??Purchase?of?National?Savings?Certificate
??Purchase?of?ULIP?of?UTI,?LIC-?Mutual?fund?etc
??Payment?of?notified?annuity?plan?of?LIC?or?other?insurers
??Subscription?towards?notified?units?of?MFs
??Subscription?to?any?notified?bonds?of?NABARD
??Deposit?in?Sukanya?Samriddhi?Account
? Any sum paid (incl. interest accrued) as subscription to Home
Loan account scheme of National housing bank
? Any public deposit scheme of HUDCO
? Any sum paid as tuition fees for full time education of any 2
children (Indian institutions)
? Principal amount paid towards cost of purchase/construction of
residential property
? Amount deposited as term deposits (5 years or more) in
accordance with a scheme framed by the Govt
? 5 years Term deposits scheme of post office
? Gross qualifying amount or Rs.150000
TAX?RATES?FOR?AY?2017-18,?PY/FY?2016-17
?
?
Individuals?(Males?and??????????????????Senior?citizen?(aged?60yrs? ??????????Senior?citizen?(aged
?Females)????????????????????????????????????????and?above,?less?than?80?yrs)???????????????80?yrs?and?above)
Upto?Rs.2.5lac??????????Nil???????????????????Upto?3lac?????????????Nil?????????????????????????????????---------
?2.5lac-5lac????????????????5%??????????????????3lac-5lac?????????????5% ??????????Upto?5?lac????????Nil
5lac-10lac????????????????20%??????????????????5lac-10lac?????????20%????????????????????????5?lac???10lac???????20%
Above?10lac????????????30%??????????????????Above?10?lac?????30% ??????????Above?10?lac??????30%
Surcharge:?10%?of?income?tax,?where?total?income?exceeds?Rs.50?lakh?up?to?Rs.1?
crore.
Surcharge:?15%?of?income?tax,?where?the?total?income?exceeds?Rs.1?crore.
Cess:?3%?on?total?of?income?tax?+?surcharge.
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This post was last modified on 18 February 2020