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Introduction to Income Tax Act 1961

In India, Income tax is a tax you pay to the government based on your income. The government uses this tax money for various purposes including public services, infrastructure development, defence spending and subsidies among other options. It is compulsory that one has to pay income tax if the income he or she earns crosses beyond a certain limit.   The Income Tax Act,enacted in 1961, is a statute that focuses on the different rules and regulations that govern taxation in the country. It provides for collecting, levying, administering and recovering income tax for the Indian government. The Income Tax Act,1961 contains a total of 23 chapters and 298 sections. These deal with various aspects of taxation in India.   During the month of February, every year, the Indian government presents a finance budget. There are various amendments to the Income Tax Act in the finance budget. This includes changes in tax slabs wherever applicable. For example, the Finance Minister announced tha
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Terminology of Accounting(लेखांकन की पारिभाषिक शब्दावली)

1) Trade(व्यापार) :-    Purchase and sales of products for motive of earning profit is known as Trade.(लाभ कमाने के उद्धेश्य से किया गया वस्तुओ का क्रय-विक्रय व्यपार कहलाता है।) 2) Profession(पेशा) :- Activities which requires special knowledge and skill to be applied by an individual in his work to earn a living is known as profession. Examples- lawyers are professionals,engaged in legal profession governed by bar council of india, Doctor are professionals who are in medical professions and are governed by Medical Council of india.(आय अर्जित करने के लिए किया गया कोई भी कार्य जिसमे प्रशिक्षण की आवश्यकता होती है उसे पेशा कहते है। जैसे वकील, डॉक्टर, चार्टर्ड अकाउंटेंट. इन कार्यो को करने के लिए प्रशिक्षण की आवश्यकता होती है।)  3) Business(व्यवसाय) :-  Bussiness refers to those economic activites which are connected with the production, purchase, sales or distribution of goods or services with the main objectives of earning profits. Examples- Fishing, mining, farming, manufacturi

Concept of Hindu Undivided Family (HUF)

Concept of HUF The term 'Hindu Undivided Family' has not been defined under the Income Tax Act. It is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. This means membership of a HUF does not come from a contract but from status of the person in such families. A HUF cannot be formed by a group of people who do not constitute a family. Lineal descendents with a common ancestor is a must Type of HUF There are two types of HUF Mritakshra sampraday Dayabhag sampraday Dayabhag Sampraday (दयाभाग संप्रदाय) The dayabhag law applies in West bengal and Assam . According to this law, the son doesn't acquired any right by birth in the ancestral property. The son's right arise for the first time on father death. All properties thus, devolve by inheritance and not by survivorship. Under this school of law, the coparcenary is formed only on death of the father. Fem

Diffrence between Previous year & Assessment years

Assessment Year [Sec. - 2 (9)] Meaning and Definition  Assessment year refers to a year in which financial year is assessed. Assessment year  is the evaluation year of the financial year. Or  Assessment year is the tax calculation year. Explanation If a person "A" earned income in financial year 2016-17, then he will pay income tax in assessment year 2017-18. Definition:- Assessment year may be defined as a year in which the income of the previous year is to be assessed. Previous year [Sec. -3] Meaning and Definition Previous year refers to the year in which income is generated. The income of the previous year is taxed in the immediately following assessment year. Definition:- Previous Year means financial year, which is immediately preceding  the assessment years.   Introduction to Income tax Act 1964 Sr. No.  Subjects Name  Links 1 Previous years & assessment years Click Here>>> 2 Assessee Click Here>>&

What is Capital ? ( Meaning, Definition and Type of Capital)

Capital is an investment which invested by Partners, Proprietor, or an Entrepreneur, in their businesses. The capital may be introduced in business as both monetary or assets form. The main purpose behind the capital investment in the business is to start the business properly and run there business smoothly. Definition of Capital. Capital refers to the financial resources used in business to fund their operations like plant & machinery, cash, equipment, and other resources. These resources allowed to produce products or services to sell to the customer. Type of Capital. There different types of Capital 1) Fixed Capital:-    It refers to the durable capital goods, which used in the production of goods again and again until they wear out. Like machinery, tools, factory, building, etc are fixed capitals.  2) Working Capital:- It refers to the amount which helps to run the business. The funds being constantly used to pay for core business operations, which are an

Creditor (Meaning, Definition,Types of Creditor)

What is Creditor? Any person or organization who sales goods or services in credit or grant money on credit to the other person or organization is known as a creditor. A business that provides suppliers or services to companies or an individual and does not demand payment immediately is also considered as a creditor. Who is Creditor? The creditor may be a person, supplier, or Bank that has provided credit to the company. The amount owed to the creditor is reported on the company balance sheets as liabilities. Creditors can be classified as personal or real. People who loan money to friends or families are known as personal creditors. Real creditors have a legal contract with borrowers, sometimes granting the lender the right to claim any of the debtor real assets (For example, bank or finance company). Types of Creditor There are two types of Creditor 1) Secured Creditor      2) Unsecured Creditor 1) Secured Creditor The Creditor or Lender who gives credit to any Company,

What is Tax Deduction at Source (TDS)? Meaning, Definition, and various tax deduction sources

What is TDS? TDS is the abbreviation of Tax deduction at sources. The concept of TDS was introduced with the aim to collect the tax from the very source of the income. As per this concept, a person (payer) who make a payment any specified nature to any other person (Payee), shall deduct tax at source and remit the same into the account of the central government.  For example, Mr. X make payment of ₹50000, to Y Ltd as a professional fee. So Mr. X will deduct TDS @10% (as per TDS Rate chart) i.e. ₹ 5000 and remit the ₹5000 into account of central government. Deduction of Tax at Source and Advance payment (Sec. 190) The total income of assessee which he or she earned in the previous year is taxable in relevant assessment years. For example,  Income earned in PY 17-18 are taxable in AY 18-19, but the income tax is recovered from the assessee in Previous years itself through:- Tax deduction at source (TDS) Tax collection at source (TCS) Payments of advance tax.