Tax

Management
 Tax
A charge or a sum of money levied on
person or property for the benefit of
state.
It is a payment to Government.
It is a kind or charge imposed by the
state upon the citizens.
Profit = Revenue – Expenses.
 Direct Taxes
Income Tax
Wealth Tax
Corporate Tax
Fringe Benefit Tax
Dividend Decision Tax
 Direct Taxes
It is levied on Income and Assets.
Tax Payer is tax Bearer.
Burden of tax cannot be shifted.
Slabs are applicable.
Tax planning avenues are available.
Regulated under Income Tax, Companies
Act, Partnership act.
It is collected and monitored by CBDT.
 Indirext Taxes
 Sales/ CST/ VAT
 Excise
 Customs Duty
 Service Tax
 Entertainment Tax
 Indirext Taxes
 It is levied upon goods and services.
 Tax payer is tax Bearer.
 Burden of tax can be shifted.
 There is no system of slabs No such
avenues is available.
 Regulated under Sales Tax and Excise
Duty.
 It is collected by Board of Excise and
Customs.
 Tax Management
It includes maintenance of records in prescribed
format.
It includes getting audited the records, filing
returns and pay taxes. Etc.
It is a regular feature of business enterprises
and a form of tax planning.
Employees use CBDT (Central Board of Direct
Taxes).
Employers use TDCAN (Tax deduction and
collection Account No).
 Aims Of Tax Management
Compliance with legal formalities.
Saving from penalties and prosecution.
Taking advantage of various tax incentives
and deductions.
Review of departments orders.
 Areas
Of
Tax Management
1. Deduction Of Tax At Source-:
It can be done with respect of income from
salaries, winning from lottery, horse race,
etc.
Employer seek for TDCAN and employee for
Pan card.
TDS should be deposited in government
treasury.
Employer should furnish to the employee a
certificate regarding TDS i.e.. Form 16.
Employer should furnish quarterly and annual
returns regarding TDS.
2. Payment of tax-:
Advance payment of Tax.
Tax on Self Assessment
Payment on Demand
3. Audit of accounts-:
If business income exceeds 40 Lakh.
If individual income exceeds 10 Lakh
3. Fulfillment of conditions to Claim
Deductions.

4. Furnishing Return of Income.

5. Documentation and Maintenance of

records.

6. Review of Orders.
 Tax Avoidance
An art of dodging out i.e. actually breaking
law.
 Method of reducing tax incidence by
finding out loopholes of law.
A device which technically satisfies
requirement of law but not in legal
accordance.
It includes attempt to prevent or reduce tax
liability.
 Types of Tax Avoidance
An art of dodging out i.e. actually breaking
law.
 Method of reducing tax incidence by
finding out loopholes of law.
A device which technically satisfies
requirement of law but not in legal
accordance.
It includes attempt to prevent or reduce tax
liability.
 Tax Evasion
To reduce tax liability when accounts are
interpreted then it is Tax Evasion.
It is not only illegal but also immoral and
antinational.
Under tax laws, tax evaders are penalized
by heavy duty
 Means of Tax Evasion
Falsification of Accounts.
Inflation of expenses.
Cautious violation of rules.
Excessive payment of salary.
Non-disclose of capital gain.
 Assessment Year-:
The period of time in which the tax liability is
assessed and the payment of Tax is made upon
the income earned in previous year is known as
Assessment Year
Previous Year-:
It is the year in which income is earned.
Financial Year-:
It is the year in which new tax laws are
prepared in the Finance Act are
implemented.