INCOME TAX

INCOME TAX

The government imposes taxes on the income earned by the people. This tax is charged by the government on any income earned within the jurisdiction of the government. 71 % of the total revenue that the government earns is from the taxes and duties that they collect.
The income tax rate charged on each individual depends on how much income the individual earns. A person has to pay income tax on a yearly basis. The income tax paid depends on the income a person earns in a financial year.
ELIGIBILITY OF INCOME TAX-
The income tax rates are different for every person. It depends on how much a person earns in a financial year.

INCOME THAT IS TAXABLE-
The people earn different types of income. Keeping in mind the different types of income that are earned, the government has created different rules for income under different heads. The different types of income and their rules for income tax are mentioned below-
● Income from Salary- If the relationship between the payer and the payee is that of an employer and an employee, and then the income earned by the payee comes under income from salary. Under this salary, profit in lieu of salary, pension, allowances that a person receives is taxable.

Income from House property– Income earned from renting out of house properties is taxable under this head. The property can be rented out not just for domestic use, but also for commercial purposes. If the property owned by a person is not rented out, then tax is chargeable on the expected rent if the property was rented.

Income from profits and gains from business and profession– Any profit or gain that is earned from commerce, profession, trade, or any other similar activities is taxable under this head.

Income from capital gains- Any profit or gains that are earned from the transfer of capital assets is taxable under this head.

Income from other sources– Any income that does not fall under the other four heads that will be taxable under income from other sources. This includes interests, income from the lottery, etc.

There are various types of challans under Income Tax. A few of them are described as below –

Payment of BCTT & FBTChallan ITNS 283

is used for payment of Banking cash transaction tax(BCTT) and Fringe benefit taxes(FBT). Sec 95 of the Income-tax act levies a tax of 0.1% on the value of every taxable transaction entered with your bank. FBT is taxes levied on the employer for the benefits extended to its employees as reduced by the amount recovered from the employee. FBT is levied at a flat rate of 30%. The detail to be filled in the form includes the Pan number, account details of the bank from which the payment will be made, and common details. The payment of both taxes can be paid through Challan no. ITNS 283. You can save the pdf form of challan no. 283 from this link
https://www.tin-nsdl.com/downloads/oltas/Challan-No-ITNS-283.pdf

Payment of Income-tax under Undisclosed foreign Income

Any income on which tax is not paid is termed undisclosed income or often black Money. If the source of such income is from out of India the tax levied depends on the type of assesses. e. the company and other than the company. Tax on companies is charged as per corporate rate and tax on other than companies is charged with different rates. The person gets no further deductions under any section of the income tax act. However, If the income includes taxability under any foreign act or is not taxable in India such amount shall be eligible to be reduced up to that extent.

Payment in respect of other taxes and duties on commodities –

Any Payment in respect of other taxes and duties on Commodities is done through Challan ITNS 285 also referred to as ‘Equalization levy Challan. It is applicable to residents and non-residents having a permanent establishment in India. The liability to pay tax arises when the amount of consideration extends the specified limit in digital domain services. The rate is 6% for both residents and non-residents. payment of ITNS 285 can be made in physical form that can be saved from the link below-
https://www.incometaxindia.gov.in/Forms/ITNS285.pdf