Income Tax Indian Stamp Duty

Service Tax

TAX LAWS

Direct Taxes :-Income Tax Laws-Corporation Tax Laws-Property Tax -Estate Duty or Inheritance Tax-Gift Taxes

Indirect Taxes :-Customs Duty -Central Excise Duty -Service Tax -Sales Tax + VAT

TAXATION IN INDIA

• Tax is a payment made to the government of a country without “ quid pro quo”i.e. nothing in return.

• Tax rates are subject to changes , decided at the time of the budget period.

• Different rates for different Taxes• Provision for Tax Deduction at the Source, by

the Employer, or at the time of making the payment.

FEATURES OF TAX LAWS

Failure to recover the tax at the source by the employer , is an offence , punishable with fine.Employer has the authority/responsibility under the Income Tax Act :1) to assess the income of the employees & to deduct the appropriate tax 2) to remit the tax to the govt & submit the required information / returns to the I T officials, as per the I T act .

CONT…

Section 80 C:Investments in approved schemes up to Rs 1 .00 lakhs is allowed as deduction in the in the Income. This includes repayment of the Housing Loan EMIs. (LIC, Pension Schemes , PPF ,EPF , NSCs, Fixed Deposits with Banks /Post offices , Senior Citizens Savings Scheme )

IMPORTANT SECTIONS OF IT ACT

This deduction is in addition to Rs. 1,00,000 savings under IT deductions clause 80C.

No benefit for repayment of the Principal amount.

An expenditure in excess of Rs 20,000/ will be permitted as an expense from the Income if the payment is made by means of a Crossed Cheque,

Search warrants for Lockers signed by the Commissioner of Income Tax before the search is permitted,

Specified Income Tax Authorities may seek information on Customer accounts as may be necessary,

If the aggregate of Principal & Interest Rs 20,000/ or more, then repayment has to be made by means of A/C payee Draft or the Bankers Cheque, or credit the depositors account,Role of the Employer as Tax Deducting Authority :- Even recovery of the Tax from the employees -Payment of the Tax within the stipulated time -Submission of Form No 26 annually before 30th April -No tax on NRI /FCNR deposits

INCOME TAX ACT ( AS APPLICABLE TO BANKERS)

Applicable to Interest on Term Deposits , on payment of Interest of Rs 10,000/ & above , as and when the provision is made in the bank books. Not applicable to the Recurring Deposit Accounts. Interest earned will be taken as income at the time of maturity. Interest on Savings Bank Accounts are outside the purview of TDS up to Rs 10,000/ ( From this year) Rates :Residents: Individuals – 10.25% Others -20 %

TDS ON DEPOSITS