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Submitted by:
Harshvardhan Choudhary
Gajanan Govekar
Kaustubh Datta
Saloni Saraswat
Sandip Barman
Shrey Chitlangia
Direct tax
Tax which is paid directly by an individual
or an organization to the government.
It is paid by the person or organization on
which it is legally imposed.
The burden of which cannot be
transferred to any other person.
Taxpayer and the tax bearer is the same.
1.
.
.
.
Senior citizen
Super senior
citizen
Tax rate
Upto 250000
Upto 300000
Upto 500000
Nil
250001-500000 300001-500000
10%
-
5000011000000
500001-100000 5000011000000
20%
Co-operative society
upto 10000
10001- 20000 :
Nil
10%
Firm
30 % of taxable income
Local authority
Domestic Company
Heads of Income
The total income of a person is
segregated into five heads:Income from salaries
Income from house property
Profits and gains of business or profession
Capital gains and
Income from other sources
Deductions
Some of the deductions under chapter VI A:
80C
80CCC
80CCG
80D
Medial insurance
80E
80G
Donations
80GG
80U
80TTA
ADVANCE TAX
Advance taxis theincome tax payable if your tax
liability exceeds Rs 10,000 in a financial year.
Advance tax should be paid in the year in which the
income is received.
Advance tax is applicable when an individual has
sources of income other than his/her salary.
For instance, earning through capital gains, interest
on investments, lottery,house propertyor business,
advance tax is applicable.
On or before 15th
September of previous
year
On or before 15th
December of previous
year
On or before 15th
march of previous
year
Corporate
assessee
15%
45%
otherwise
upto 30 %
75%
Upto 60 %
100%
Upto 100%
TDS :
The general rule is that the total income of an
assessee for the previous year is taxable in the relevant
assessment year. However, income-tax is recovered
from the assessee in the previous year itself by way of
TDS.
TAX RETURNS:
There are five categories of Income Tax returns.
Normal return u/s 139(1)
Belated return
Revised return
Defective return
Returns in response to notices
2. WEALTH TAX
Wealth tax is levied on the total value of
personal assets which includes owner occupied
housing, cash and bank deposits insurance,
pension plans, investments etc.
It taxes the accumulated stock of purchasing
power
In India, Wealth tax is 1% on net wealth
exceeding 30 Lakhs (Rs 3,000,000). However,
non-residents returning to India are exempt for
seven years
3. PROPERTY TAX
A property tax is anad valorem taxlevy on the value of
property that the owner of the property is required to
pay to a government in which the property is situated.
A common type of property tax is an annual charge on
the ownership ofreal estate, where the tax base is the
estimated value of the property
The tax power is vested in the states and it is delegated
by law to the local bodies, specifying the valuation
method, rate band, and collection procedures.
For example, a property with an assessed value of
$50,000 located in a municipality with a mill rate of 20
mills would have a property tax bill of $1,000 per year.
5. CORPORATE TAX
Corporate taxes are usually levied by all levels of
government (i.e., State and Country). Corporate tax
rates and laws vary greatly around the world, as
different governments and countries view corporate
taxation in different ways. For example, those in favour
of lower corporate tax rates point to the possibility for
greater economic production if companies are taxed
less. While others see higher corporate tax rates as a
way to subsidize government spending and programs
for the nation's citizens.
The current rate of Corporate Tax in India for the
current year is 33.69% (3rd highest after Japan &
USA).
The tax generally is imposed on Net Taxable Income.
IN D IRE C T TA XE S
VAT (Contd..)
It is a tax on the estimated market value added to a
product or material at each stage of its manufacture
or distribution, ultimately passed on to the consumer.
Under the current single-point system of tax levy, the
manufacturer or importer of goods into a State is
liable to sales tax.
VAT, in simple terms, is a multi-point levy on each of
the entities in the supply chain.
The value addition in the hands of each of the entities
is subject to tax.
VAT can be computed by using any of the three
methods: (a) Subtraction method
(b) The Addition method
(c) Tax credit method
3. SALES TAX
Sales Tax in India is a form of tax that is imposed by the
Government on the sale or purchase of a particular
commodity within the country.
Sales Tax is imposed under both, Central Government
(Central Sales Tax) and State Government (Sales Tax)
Legislation.
Each State follows its own Sales Tax Act and levies tax at
various rates.
Apart from sales tax, certain States also imposes
additional charges like works contracts tax, turnover tax
and purchaser tax.
Sales Tax Acts as a major revenue-generator for the
various State Governments.
From 10th April, 2005, most of the States in India have
supplemented sales tax with a new Value Added Tax (VAT)
4. SERVICE TAX
The service providers in India except those in the
state of Jammu and Kashmir are required to pay a
Service Tax under the provisions of the Finance Act of
1994.
The provisions related to Service Tax came into effect
on 1st July, 1994.
Under Section 67 of this Act, the Service Tax is levied
on the gross or aggregate amount charged by the
service provider on the receiver.
However, in terms of Rule 6 of Service Tax Rules,
1994, the tax is permitted to be paid on the value
received.
Service Tax in India is that the Government depends
heavily on the voluntary compliance of the service
providers for collecting Service Tax in India.
5. CUSTOMS DUTY
A tax or duty which is levied by central
government on
Import of goods into, or
Export of goods from India
At such rates as specified under the Custom Tariff
Act 1975
Custom Duty is payable on all the goods
It was formulated in 1962 to prevent the illegal
imports and exports of goods
6. EXCISE DUTY
Excise duty is a tax upon manufacturer of goods
and not upon sale of goods.
Manufacture includes any process
Incidental to the completion of any manufactured
product, which is specified in Central Excise
Tariff .
Act 1985, as amounting to manufacture.
Central Excise Duty is levied vide Entry 84 of the
union list.
Entry 84 includes: Tobacco, other goods
manufactured ort produced in India, medical and
toilet preparations.
Entry 84 Excludes: Alcoholic liquor for human
FEMA
(FOREIGN
EXCHANGE
MANAGEMENT ACT)
BACKGROUND
FERA (1973)
The main objective of FERA was
conservation and proper utilisation of the
foreign exchange resources of the country.
It also sought to control certain aspects of
the conduct of business outside the
country by Indian companies and in India
by foreign companies.
It was a criminal legislation which
deterred foreign investments.
APPLICABILITY
The Act is applicable throughout India.
The act applies to all branches, offices
and agencies outside India owned or
controlled by a resident of India.
It extends to any disputes committed in
offices, agencies and branches outside
India that are owned by individuals
covered by this act.
PROHIBITIONS
SECTION 3. This section states that no person can, without general or special
permission of the RBI(a) Deal in or transfer any foreign exchange or foreign securities to any
person not being an authorized person.
(b) Make any payment to or for the credit of any person resident outside
India in any manner.
(c) Receive otherwise through an authorized person, any payment by order or
on behalf of any person resident outside India in any manner.
(d) Enter into any financial transaction in India as consideration for or in
association with acquisition or creation or transfer of a right to acquire any
asset outside India by any person.
CONTROLING AUTHORITY
Capital Account
Transactions
Capital Account Transactions includes those transactions
which are undertaken by a resident of India such that
his/her assets or liabilities outside India are altered
( either increased or decreased).
For example:- (i) a resident of India acquires an
immovable property outside India or acquires shares of
a foreign company.
Alters the assets or liabilities in India of persons resident
outside the India.
For example, (i) a non-resident acquires immovable
property in India or acquires shares of an Indian
company or invest in a Wholly Owned Subsidiary or a
Joint Venture with a resident of India
PROHIBITIONS
General Prohibition:-A person shall not undertake or sell
or draw foreign exchange to or from an authorized person for
any capital account transaction.
For Ex -Reserve Bank has issued a circular wherein a
resident individual can draw from an authorized person
foreign exchange up to US$ 25,000 per calendar year for a
capital account transaction
Special Prohibition:- A non resident person shall not make
investment in India in any form, in any company or
partnership firm or proprietary concern or any entity,
whether incorporated or not, which is engaged or proposes
to engage:- (i) in the business of chit fund, or (ii) as Nidhi
Company, (iii) in agricultural or plantation activities (iv) in
real estate business, or construction of farm houses
PROHIBITIONS
Central Government may, in public
interest and in consultation with the
Reserve Bank, impose such
reasonable restrictions for current
account transactions as may be
prescribed.
PENALTIES
Any person contravenes any provision, rules or
regulation, penalty is 3 times the amount involved.
If amount of Contravention is not ascertainable
than maximum penalty up to 2,00,000
If contravention is continuing one than 5,000 per
day after first day till contravention continues.
The Adjudicating Officer can confiscate any
currency, security or property in addition to
imposed penalty.
If Penalty not paid person can be liable to civil
imprisonment.
List of References
Current account
http://business.gov.in/doing_business/current_account_transact
ion.php
Capital Account
http://business.gov.in/doing_business/cap_account_transaction.
php
Intro
http://business.gov.in/doing_business/fema.php
http://dor.gov.in/fem
Nidhi comp
http://aishmghrana.me/2014/09/04/nidhi-companies /
Direct Tax
http://www.onemint.com/2012/11/21/income-tax-on-gifts-from-n
ris-and-relatives-in-india/comment-page-2
/
http://en.wikipedia.org/wiki/Gift_Tax_Act,_ 1958
http://articles.economictimes.indiatimes.com/keyword/gift-tax
http://
THANK YOU!!!