Tax systems that are followed worldwide majorly fall into three categories – Progressive tax Regressive tax Flat tax A progressive tax is one which charges the rich more than the poor. Here, the tax-rates increase as income tax brackets go higher, thus financially impacting higher-income individuals and businesses more and low-income earners less. Regressive taxes… Continue reading Understanding Flat Tax
Direct taxes form nearly half of the tax revenue collected in fiscal year 2016-17 at 49.66% and exactly 5.60% of the national income/ GDP in the same year according to Time Series data released by the Income Tax Department. Tax deducted at Source or TDS has been a rapidly rising source of revenue for the… Continue reading What to Do If My Employer Does Not Pay TDS
India follows a progressive tax regime. Progressive tax system means that high-income earners are taxed more than low-income ones. The extent of the progressivity in this tax method depends on how fast the tax rates rise with the increase in income levels. For example, if one tax bracket has a low rate of 5% and a high rate of… Continue reading Understanding Progressive Tax
The best part of the end of the month is the expectation of obtaining your salary but income tax can be a dampener on your joy. Most of us receive our salaries by the first half of the month. Our employers are bound by law to deduct income tax for us as individuals before they… Continue reading How to calculate Income Tax on Salary
There’s more to converting currencies than just knowing the foreign exchange rate. We are talking about taxes.In this article, you will learn how to calculate service tax (now GST – goods and services tax) and taxable value when interchanging currencies in India. Why Service Tax? We know that service tax is levied on any service provided or to… Continue reading How to pay GST on exchanging Currency
The Federation of Indian Exporters regional chairman was recently quoted as saying that traders have been waiting for nearly INR 5 lakh crore worth of tax refunds due and that is adversely impacting the working capital flows of exporters. In fact, export figures turned negative for the first time since last June shrinking to USD… Continue reading The GST Council and Tax Reform
The ancient tradition of the Joint Hindu Family is referred to as a Hindu Undivided Family or HUF for the purposes of income tax. There are several tax advantages to running a business or earning under various heads of the Income Tax Return form that can save a big chunk of taxable income should you… Continue reading What is a Hindu Undivided Family in Tax Law?