TAX PLANNING

BY-: RICHA SINGH RICHA SHARMA PARUL SINGH SHAKUNTLA SAHU PUJA PRIYADARSHINI LAVINA VERGHESE

WHAT IS TAX ?
Tax is derived from the latin word taxo which means "I estimateis to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law.

TYPES OF TAXES
DIRECT TAX INCOME TAX ENTITLEMENT TAX PROPERTY TAX CAPITAL GAIN TAX STATE TAX TRANSFER TAX DEATH TAX INDIRECT TAX SALES TAX FEDERAL TAX CUSTOM TAX TARRIF TAX FEES TAX

WHO ARE LIABLE TO PAY INCOME TAX ?

Individual Juridicial person

HUF

SEC 2(31) of the Income Tax Act

Local Authority

Company

AOP OR BOI Firm

India Income tax slabs 2012-2013 for General tax payers

Income tax slab (in Rs.)

0 to 2,00,000 2,00,001 to 5,00,000 5,00,001 to 10,00,000

Tax
No tax 10% 20%

Above 10,00,000

30%

India Income tax slabs 2012-2013 for Female tax payers

Income tax slab (in Rs.)
0 to 2,00,000 2,00,001 to 5,00,000 5,00,001 to 10,00,000 Above 10,00,000

Tax
No tax 10% 20% 30%

India Income tax slabs 2012-2013 for Senior citizens (Aged 60 years but less th

Income tax slab (in Rs.)

0 to 2,50,000 2,50,001 to 5,00,000 5,00,001 to 10,00,000 Above 10,00,000

Tax
No tax 10% 20% 30%

India Income tax slabs 2012-2013 for very senior citizens (Aged 80 and

Income tax slab (in Rs.)

Tax

0 to 5,00,000

No tax

5,00,001 to 10,00,000

20%

Above 10,00,000

30%

Conditions to determine the resident status

Assessee has been in india for a period of 182 days or more in previous year. OR 60 days in previous year and 365 days or more in 4 years.

Additional conditions
Has been in india at least 2 out of 10 years and

Has been in india for a period of 730 days or more during 7 years

ROR
An assessee who fulfils any of the basic conditions and also satisfies both the add.itional conditions

RNOR
An assessee who satisfies any of the basic conditions but fails to staisfy both the additional conditions .

NON - RESIDENT
An assesse who fails to satisfy any one of the basic conditions is said to be a NR.

Resident Status for HUF/Firms/AOP

Resident -: wholly or partly in india. Non-Resident-: wholly or partly outside india.

Terminologies used in respect of income tax

Gross Total income Total income Previous Year Assessment year

INCOME FROM SALARY

INCOME FROM OTHER SOURCES

CONCEPT OF

INCOME

INCOME FROM HOUSE PROPERTY

INCOME FROM CAPITAL GAINS

INCOME FROM BUSINESS AND PROFESSION

EXEMPTED INCOME
DETAILS OF INCOME EXEMPTED RECEIPTS FROM HUF SHARE OF PARTNER IN TOTAL INCOME OF A FIRM INTEREST ON SPECIFIED SECURITIES VALUE OF LTC DEATH-CUM- RETIREMENT GRATUITY LONG TERM CAPITAL GAINS ON TRANSFER OF SECURITIES

RELEVANT SECTION 10(2) 10(2A) 10(4)(i) 10(5) 10(10) 10(38)

CLUBBING OF INCOME

PAN

TAN

TDS

INVESTMENT PRODUCTS FOR TAX SAVING

EPF PPF NSC LONG TERM GOVERNMENT SECURITIES BANK DEPOSITS LIFE INSURANCE PRODUCTS PENSION PRODUCTS MUTUAL FUNDS

DIFFERENT SECTIONS OF IT ACT RELATED TO TAX PLANNING

SECTION 80C SECTION 80D SECTION 10(33) SECTION 80E SECTIO 80G SECTION 24B

TAX PLANNINGUNDER SECTION 80C

THREE STEPS PROCESS IN TAX PLANNING-: HOUSING LOAN COMPUTE THE FIXED INVESTMENTS/CONTRIBUTIONS INVEST THE BALANCE IN SUITABLE AVENUES

THANK YOU