July 5, 2011

Income Tax Slab Rates in India – Calculation Steps for Women,Senior Citizens,HUF,Individuals

The Indian Income tax Act prescribes different tax slabs for Senior citizens, Women & Individuals including AOP (Association of Person), BOI (Body of Individuals) & HUF (Hindu Undivided Family). To calculate the total income tax liability, one needs to follow the below mentioned process: * Calculate your gross total income. This includes gross income from the five sources of income - Income from Salary, Business/ Profession, Capital Gains, House Property & Income from other sources. * Calculate the net deductions for example donations, investments and savings such as provident fund subscriptions, Life Insurance Premiums etc. * The net taxable income is gross total income less net deductions. * Then the appropriate income tax rate is applied to calculate the total tax liability. * Education Cess of 3% is applied on the tax payable to arrive at the total tax payable. Relief under various sections would be applied on this total tax.
July 4, 2011

Basic Knowledge of Indian Income Tax, Terms & Definitions

Some very basic terms & their definitions used in context with the Indian Income Tax are given below: ASSESSEE - is any person who is required to pay Income tax or any other sum payable under the Income Tax Act being interest, penalty etc. ASSESSMENT YEAR - is the period comprising of twelve months starting on 1st of April & ending on 31st March of the next year. Assessment year succeeds the financial year. For eg. For the FY 2011-2012, the AY will be 2012-2013.