SALIENT FEATURES OF INCOME TAX Income Tax is

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SALIENT FEATURES OF INCOME TAX Income Tax is a financial charge on the income

SALIENT FEATURES OF INCOME TAX Income Tax is a financial charge on the income of a person. Some of its salient features are given below: ØCentral Tax ØDirect Tax ØTax on taxable income ØProgressive Rates of Tax ØScope of Taxation ØTax exemption limit ØBurden on rich class persons ØSeparate administration ØDistribution of tax: Central and State Government ØLargest Source of Revenue ØTax for Country Welfare

PERSON INCLUDES: An Individual üA Hindu Undivided Family üA Company üA Firm üAn Association

PERSON INCLUDES: An Individual üA Hindu Undivided Family üA Company üA Firm üAn Association of Persons or a Body of Individuals üA Local Authority üArtificial Juridical Person ü

ASSESSEE SECTION 2 (7) Assessee means a person by whom any tax or any

ASSESSEE SECTION 2 (7) Assessee means a person by whom any tax or any other sum of money is payable under the Income Tax Act 1961 Includes: ØEvery Person who is liable to pay tax ØA Deemed Assessee ØAn Assessee in Default

GROSS TOTAL INCOME The income of a person is computed under the following five

GROSS TOTAL INCOME The income of a person is computed under the following five heads: q. Salaries q. Income From House Property q. Profits and Gains of Business or Profession q. Capital Gains q. Income from Other Sources The aggregate income under these heads computed after making deductions permissible under that head but before making any deductions under Section 80 C to 80 U is termed as “Gross Total Income”.

CASUAL INCOME Casual income includes the following receipts: q. Winning form lotteries q. Winning

CASUAL INCOME Casual income includes the following receipts: q. Winning form lotteries q. Winning from crossword puzzles q. Winning from races q. Winning from card games and other games of any sort q. Winning from gambling or betting of any form or nature

TOTAL INCOME GTI Deductions from 80 C to 80 U

TOTAL INCOME GTI Deductions from 80 C to 80 U

FOR THE GROSS TOTAL INCOME THAT YOU HAVE EARNED IN FINANCIAL YEAR 2018 -19,

FOR THE GROSS TOTAL INCOME THAT YOU HAVE EARNED IN FINANCIAL YEAR 2018 -19, ITS ASSESSED IN THE ASSESSMENT YEAR 2019 -20 AND THE ITR NEEDS TO BE FILED BY THE DUE DATE. TAX RATES – IN CASE OF AN INDIVIDUAL

TAX RATES – IN CASE OF A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS

TAX RATES – IN CASE OF A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR BUT LESS THAN 80 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR)

TAX RATES – IN CASE OF A RESIDENT SUPER SENIOR CITIZEN (WHO IS 80

TAX RATES – IN CASE OF A RESIDENT SUPER SENIOR CITIZEN (WHO IS 80 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR)

While calculating the actual tax liability for the assessment year 2019 -20, based on

While calculating the actual tax liability for the assessment year 2019 -20, based on one’s income, you will need to keep note of the following three points. 1. Health and Education Cess 2. Rebate under Section 87 A 3. Surcharge

HEALTH AND EDUCATION CESS The amount of income tax and the applicable surcharge, will

HEALTH AND EDUCATION CESS The amount of income tax and the applicable surcharge, will have to be further increased by health and education cess calculated at the rate of 4 per cent of such income-tax and surcharge.

REBATE UNDER SECTION 87 A: The rebate is available to a resident individual if

REBATE UNDER SECTION 87 A: The rebate is available to a resident individual if his total income does not exceed Rs. 3. 5 lakh. The amount of rebate shall be 100 per cent of income tax or Rs. 2, 500, whichever is less. For the AY 201 -21, the limit is raised to Rs 5 lakh and a maximum rebate of Rs 12, 500 will be allowed.

SURCHARGE When income is between Rs 50 lakh and Rs 1 crore: The amount

SURCHARGE When income is between Rs 50 lakh and Rs 1 crore: The amount of income tax shall be increased by a surcharge at the rate of 10 per cent of such tax, where total income exceeds Rs 50 lakh but does not exceed Rs 1 crore. When income exceeds Rs 1 crore: The amount of income tax shall be increased by a surcharge at the rate of 15 per cent of such tax, where total income exceeds Rs 1 crore.