The provisions for computing the tax on this type of income is in accordance

The provisions for computing the tax on this type of

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The provisions for computing the tax on this type of income is in accordance with Sections 30 to 43D. Income from Capital Gains:
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This is for the taxes applicable on income that arises when capital assets are transferred. Capital assets are property of any value that’s held by the assesse like land, buildings, equity shares, bonds, debentures, jewellery, art, assets, etc. (Learn more about calculating capital gains) Income from Other Sources: Basically, any source of income that cannot be classified under the above heads of income falls under this heading. There are also some specific and pre-determined incomes which fall under this heading, like: Income by way of dividends.Winnings from horse races / lotteries.Employee’s contribution towards staff welfare schemes, any fund set up under the ESIC Act that’s received by the employer from the employees.Interest on securities like debentures, government securities and bonds.Gifts.Interest on compensation.Rental income other than house property.Family pension received after the death of the pensioner.Interest income that is earned other than by way of securities. Customs duties: Duties on import and export of goods Central excise: Taxes on Manufacturing of dutiable goods Service tax: Taxes on provision of services State Governments can levy the following taxes: Value Added Tax (VAT) This is tax on sale of goods. While intra-state sale of goods are covered by the VAT Law of that state, inter-state sale of goods is covered by the Central Sales Tax Act. Even the revenue collected under Central Sales Tax Act is done so by the State Governments themselves and actually the Central Government has no role to play so. Stamp duties and Land Revenue Since land is a matter on which only State Governments can govern, thus the Stamp duties on transfer of immovable properties are levied by State Governments. State Excise on Liquor and certain agricultural goods. Apart from the above, certain powers of taxation have been devolved in the hands of local bodies. These local governing bodies can levy taxes on water, property, shop and establishment charges etc.
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Direct Taxes: They are called so as the burden of taxation falls directly on the tax payer. Under the Income Tax Act, 1961 The Central Government levies direct taxes on the income of individuals and business entities as well as Non business entities also. The taxation level depends on the residential status of individuals. The thumb rule of residential status is that an individual becomes resident in India if he has remained in India for more than 182 days in a particular residential year. If he becomes resident in India, then his global income i.e. income earned even outside India is taxable in India. This has to be noted very carefully by Expatriates on deputation to India. They need to plan their stay in such a manner as to avoid becoming a resident in India. The following para explains this in a slightly more detailed manner: Corporate Taxation: The rate at which Corporates are taxed in India is 30% plus a 3% cess. Thus the total comes to 30.9%.
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  • Fall '16
  • james
  • following taxes

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