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/.

Accounting Terminology

Accounting the most integral part of every organization, whether it is a company, a small firm, MNC, showroom, shop etc. All the expenses, sale, purchase, inventory is to be managed through accounting.

Accounting is basically a process of maintaining the records relating to company finances.  All the records are maintained with the help of an accounting software called “Tally ERP9”.

Tally ERP9 is the most used software in India and one can easily learn to operate it and maintain the records on regular basis by joining Tally Training Institute in Chandigarh.

So, this shows that without having a knowledge of Tally, one cannot get ahead in the field of accounting.

Here we are about to share few accounting terminology and terms with you to make your concepts more clear :

Bookkeeping : Bookkeeping is a process of keeping the records maintaining the same of all the financial transactions  of the organization.

Capital : Capital is the amount of money invested by the businessman to start a new business.

Credit : Credit is an entry in accounts which shows the increase in account balance of the company or reduction in assets of the company .

Debit : It in entry opposite to credit, which shows decrease in the account balance of the company or increase in assets of the company.

Creditor : Creditor is the person who owes money from the company/ person to whom he has sold his goods or provided his services.

For Example : If you sold your  goods to a Company A on credit then you are the creditor and this company becomes liable to pay you in a given time frame.

Debtor : Debtor is a person who has to give money to the person or a company from whom goods are purchased .

For example: If you purchase a particular quantity of goods from a company then you become the debtor. Basically debtor in simpler words is a customer who buys goods on credit.

Ledger : Ledger is a the complete accounting record of every transaction and that so datewise. All the financial statements are prepared with the help of these ledgers.

Sale : Sale in terms of accounting means to sell the goods in the inventory of the company. This reduces the inventory but increases the gross profit of the company.

Sale return : Sale return is also called return inward.This happens in case the goods sold by a company are returned in account of bad quality or some other fault and this increase company’s inventory.

Assets: Assets are the company resources which are purchased by the company in order to use the same for the business development. Everything being used for company benefits is an  asset for the company. This includes machinery, company vehicles, live stock, company land, building, it’s furniture, brand names, patents, Cash, inventory, and the most important asset Employees.

These basic term may help you to grasp those basic concepts of accounting in your early stages of learning in Tally training institute in Chandigarh.

Indirect Tax

Indirect tax is tax collected from intermediaries such as retailers but the ultimate taxpayer over here again are the citizens.The intermediaries apply these taxes on the product raising the price of the product and consumer pays the complete amount “inclusive all taxes”. This is how the tax is indirectly paid by the citizens of India.

Now after collecting the tax from the consumer, intermediary has to file a tax return to pay that tax to government.This may include Value added tax, Service Tax sales tax etc.

Let’s discuss about the various taxes being applied indirectly on us :

GST :

Goods and Service is the tax applicable from 1st of July, 2017. This is a consumption-based tax which includes all the taxes which were being applied previously on the good consumed and services provided.

Being consumption-based tax, at each stage of consumption in chain of supply it is levied on value added goods and services. The taxes which are now subsumed in GST are VAT, Sales tax, Luxury Tax, Central Excise duty, service tax, custom duty, property tax, etc.

Le’s have a brief desc about all such taxes.

Value Added Tax :

Value Added Tax is now included into GST. Being a commercial tax it was levied on all the stages of supply chain which included manufacturers, distributors and consumers. The tax was applied on the goods sold in the state and decided by the state itself. There were schedules as per the VAT percentages such as Schedule 3 had 1% vat, Schedule 2 had 5 % and the goods without any category were having VAT of 15%.  But now being included into GST it is not being applied separately after 1st July, 2017.

Sales tax:

Sale tax is a tax levied at the time of sale of the product, that means it is beared by the saler. The tax is levied only once and 2nd time for the same product it is not applicable but it can be trasfered to the consumer by adding the same into the final price of the product.    

Service Tax:

As the name indicates, this is the tax levied on the companies or organizations providing their particular services. The service tax may be collected monthly, quarterly or annually depending on the services being provided.But now service tax is also amongst the taxes included in GST.

So, these are few of the examples of indirect tax and there is much more than this. Gaining knowledge about taxation is not as easy as you thing. You won’t be able to grab the thing through internet. Tally Training institute in Chandigarh is the only way out if you are thinking to go for Financial Management, CA or Commerce.

Direct Tax

Tax is the amount levied by the Government on citizens in order to generate income for the development of country, to raise the living standards and economy of the country.

All the taxes being levied in India are derived from the Constitution of India and is backed by the Law passed by the Parliament.

Types of Taxes:

Taxes are paid in two different forms: Direct Taxes and Indirect Taxes.

Direct Tax :

Direct Tax are the taxes levied by the government directly to their citizens.

Citizens are the direct tax payers and they have to pay taxes if their income exceeds the particular slab of amount decided by the government.

We are here to discuss about the taxes paid by you directly :

Direct Income Tax

• Income Tax
• Wealth Tax
• CorporateTax

Income Tax

As the name implies, this is the tax paid directly against certain amount of income. The rates are charged as per the income level.

The slab of income decided by the government for the individuals below the age of 60 is as follows:

• Taxable Income below Rs.2,50,000 is Zero.
• The income between Rs. 2,50,000 - Rs. 5,00,000 is charged with 10% tax of the total income being earned.
• The taxable income between Rs. 5,00,000 to 10,00,000 is charged with 20% of the total income plus Rs. 25,000.
• The last slab of more than Rs. 10,00,000 is charged with 30% tax of the total income plus Rs. 1,25,000.

The slab for the individuals who are in between the age of 60-80 is :

• The first slab starts from Rs. 3,00,000 and below this amount the tax applied is nil.
• Between Rs. 3,00,000 to Rs. 5,00,000 the rate of tax to be paid is 10% of the total income. And rest is same for this category.

Now come the people more than the age of 80 :

• Tax is exempted for this group id the income is upto Rs. 5,00,000.
• The income more than Rs. 5,00,000 and below Rs. 10,00,000 will be levied with the tax rate of 20%. And more than that it is 30% adding to this Rs. 1,00,000 also.

The income tax is charged to an individual, companies, Hindu Undivided Families etc. There are various different heads under which the income tax is charged such as income coming from House, property, salaries, business etc. There are few exemptions also due to which the total amount of tax to be paid may reduce.

The total taxable income could be calculated by subtracting the necessary deductions and exemptions from the total amount of income earned. And after getting the particular amount tax is applied as per the slab decided.

Wealth Tax

Wealth tax is a tax levied on the personal property of the owner. If some benefits are being derived from that property, then wealth tax is applicable and is charged every year for the same property.

But the wealth tax has been abolished by the current Finance minister Mr. Arun Jately, dated 28th of February, 2015. In place of wealth tax, Additional Surcharges were raised from 10% to 12% for those Super Rich people having their income more than One Crore per annum.

This Include Super rich individuals, Hindu Undivided Families and Companies.

Corporate Tax

Corporate tax is the tax charged by the government on the profit earned by the businessmen. The said tax is applicable on both domestic companies and foreign companies.

The tax is applied in similar way as it is applied on the individuals.

So, if you are an aspiring CA,Finance Professional or student from the related field, you ought to know each and every thing minutely. And to gain knowledge practically one must join Tally Training institute in Chandigarh .

GST

GSt being the hottest topic of discussion these days have made everyone curious. The mass of people who ought to be having its complete knowledge are accounts professionals, CAs , manufactures etc and not just theoretical knowledge but practical as well.

These days you can easily gain knowledge about what so ever you want to and get yourself practically trained. Tally Training Institute in Chandigarh would definitely provide you the best training. This would be a golden chance for the newbies, as GST will be included in the whole syllabus, you do not have to pay separately.

But before that, you must have an idea of what you are going to study. So, let's give you a brief description about Goods and Service Tax.

What is GST?

GST (Goods and Services Tax) is an indirect tax to be implemented by 1st of July,2017. It has been introduced after passing the 122nd Amendment Bill , as “The Constitution Act 2017”. GST will be replacing various taxes levied by the Central and State Governments. It would include all the stages from manufacturing of goods to its’ consumption.

GST structure has been finalised as per the requirement of the goods. The essential goods would be having lower tax rates, whereas it would be increasing for luxury and Sin items. The Council has finalized the Goods and Service Tax structure as a four-tiered tax structure of 5%, 12%, 18% and 28%. There are items without tax also but luxury items may attract additional taxes as well.

The taxes subsumed by GST are :

• Central Excise Duty
• Food Tax
• Central Sales Tax (CST)
• Octroi
• Entertainment Tax
• Commercial Tax
• Value Added Tax (VAT)
• Entry Tax
• Purchase Tax
• Commercial Tax
• Value Added Tax (VAT)
• Luxury Tax
• Advertisement taxes
• Taxes applicable on lotteries

Government has adopted dual GST Model that means, both the central Government and State Government will be administrating taxation. The transactions made with in the state but with Central GST(CGST) will be administered by Central Govt. and transactions with state GST(SGST) by State Government. And in case of inter-state transaction, there is Integrated GST(IGST) administered by Central Government.

So, this was an introduction of GST for you. And in order to have a complete knowledge about the same go for Tally Training in Chandigarh which is provided by CBitss Technologies.

Why we use Tally ERP9.

Tally ERP9

Tally ERP9 is an advanced yet simple to use Accounting Software designed and developed by the Tally Solutions Private Limited, a Bangalore (India) based IT Solutions Company. It is a kind of Application Software where the Accounting process is carried out mechanically through instructions given by the user with the selection of graphical represented information of computer screen.

This software is purely developed based on Accounting Principles and Mercantile Law fundamentals, for better management of finance, Logistics and Administration of commerce and trading.

Tally is the simplest and complete business solutions available in the world. Today, over 20 lakh users across 90 countries are using Tally to expand their business and enhance performance. Anybody who has a prior knowledge of accounts or a basic knowledge of English can use Tally. By using a business accounting software like Tally 9, you will be able to simplify, integrate and streamline all your business processes, easily and cost-effectively.

Why we use Tally ERP9 :

• Tally ERP9 allows you to access your accounts remotely using the Tally.NET facility, which allows you to access your accounts over Internet Connection.
• It is a leading Accounting software. Since its inception Tally Accounting Package is being developed and will be developing on daily basis as per industry requirements.
• Tally ERP9 software provide the complete business solution. It is suitable for a firmware to multinational companies.
• It is user friendly computerized accounting software. Tally ERP9 supports various  other languages apart English.
• Tally ERP9 is windows platform independent. It can be installed in any platform of windows like NT, 2000, ME, 95, 98, XP, 7 Ultimate, Vista,  Windows 8. It run only in single PC or on a network.
• We can get support about the software using either online of Offline Help facility. You can learn any kind of topic from Local Help File system using Alt+H keys within the Tally ERP9 Application.
• It enable to work with multiple Company Accounts simultaneously. And it will update the information in real time.

Tally training in Chandigarh is provided by CBitss Technologies. CBitss is the best place for learning Tally course in Chandigarh. Tally course is the first choice when we talk about Job oriented accounting courses.

  

Tally training in Chandigarh

Tally training in chandigarh provided by CBitss.