What You Will Learn!
- Introduction and Important Definition
- Introduction of Tax
- Types of Taxes :
- Direct Tax : Explanation of Direct Tax
- Indirect Tax : Explanation of Indirect Tax
- Difference between Direct Tax and Indirect Tax
- Introduction to Income Tax
- Income Tax Act 1961
- Income Tax Introduced first time in India
- Types of Person
- Computation of Gross Total Income and Total Income
- Assessee Section 2(7)
- Permanent Account Number - PAN
Description
Introduction of Tax
Contents:
1. Reason of tax in past = war
2. 1% or 2% (before and after war)
3. Tax first of all charged in (a) Egypt ( 3000 year BC ) (b) UK (1798) (c) USA (1800) (d) India (1860 - due to the first revolution of 29 march 1857)
4. Tax is a contribution to state revenue
5. Compulsory charged by the government on the people
6. Charged for business, property, commodity, transaction and income generated by the person or 7. We can say: charged on income & expense of person
8. Payment of tax is duty for us because we are the member of our country.
Types of Tax :
Direct Tax- Paid by assessee and borne by assessee .
Example: Income Tax, Corporate Tax
Explanation of Direct Tax
Indirect Tax- Paid by assessee but borne by other than assessee.
Example: GST (1,000+ items), VAT + Excise Duty (Petroleum – 150% approx.), Excise Duty (Alcoholic items), Custom Duty (Import – Export), security transaction tax (share trading)
Explanation of Indirect Tax
Difference between Direct Tax and Indirect Tax
Income Tax
Contents
1. A subject very easy to understand. •But difficult to remember.
2. As provide in section 4. •The total income of previous year of every person shall be charged to Income Tax.
3. At the rate prescribed in the annual finance act.
4. As applicable to the relevant assessment year.
6. The Income shall be so charged in accordance with and subject to the provision of the Income Tax act.
Income Tax Act 1961
Income Tax Introduced first time in India
Person (Section 2(31) : Person includes:-
(1) An Individual
(2) A Hindu Undivided family
(3) A Company
(4) A Firm
(5) An association of person or body of individuals.
(6) A Local authority
(7) Artificial juridical person.
Divide and rule policy
Previous Year Section 3
Assessment Year Section 2(9)
Computation of Gross Total Income and Total Income
Difference between gross total income and total income
Assessee Section 2(7)
Double taxation avoidance agreement
Different name of tax
Income tax Court name & Sequence
Permanent Account Number - PAN
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.
