Income Tax

Taxation, one of the major and inevitable section of accounting. If you are  into accounting or related field, you must know about each and every type and should have complete practical knowledge about it. What is taxation, its types, how it is applicable, how it is calculated, filed and paid to to the government.

Tally Training institute in Chandigarh is the right place to clear all your doubts and make yourself competent enough.

Taxation is vast ocean and Income tax is the most important drop of that ocean. Before getting into the details one must know about the tax levied on their income.

Income Tax

Income Tax is a Direct Tax levied to the income of an individual, company or business. The tax is collected on all the forms of Income such as salaries, business income, commision etc.

Individual Income Tax

The income tax to be paid by an individual depends on the income he/she receives throughout the year. Government has decided 4 slabs to decide the percentage of tax to be applied .

But the tax is levied on the taxable income.Taxable income is after making all the deductions such as education expenses, medical bills, House rents, Policy payments etc.  For example, if the taxpayer is earning Rs.3,50,000 per year and shows the deduction of Rs. 69,000 then the tax is levied on the remaining amount of Rs. 2,81,000 as per the rated decided by the Income Tax Department.

Property Tax

Property Tax can be collected from any individual, businessman or Undivided Families for the property they are owing. The tax is levied on the assessed value of that property and have to be paid within the given time period in order to avoid penalty.

Business Income Tax

Income Tax levied on the income of a businessmen is business income tax. Here the income could be the profits earned , Sale made and various other sources. The taxable income is after deduction of operating and capital expenses. And after deducting these two expenses the remaining income is said to be the taxable income.

These are the three different forms of Income Tax as the tax is applied according categorizing the income sources and making it easier and convenient to calculate and regulate as per Income Tax Department. To learn more about tally training in Chandigarh visit our website http://cbitss.net/.