Mandatory Quoting of PAN and TAN: According to the provisions of section 203A of the Income-tax Act, it is obligatory for allpersons responsible for deducting tax at sourceto obtain and quote the Tax-deduction Account No. (TAN) in the challans, TDS-certificates, statements and other document...
Tax is a mandatoryfee levied on individuals or corporations by the government. The money collected from the tax is used to finance government activities. Taxes that are levied on the earnings/incomes of organizations or individuals by the government are called income taxes. These earnings can be ...
Incomeis actuallynotthe money itself. The money is a separate thing (anasset). One could think ofincomeas thereasonfor the inflow of money or theactionsthat were done to cause the money to flow in. That is theincome. This should become clearer as we go through the examples below. ...
Since your income is 9 lacs, the first 2.5 lacs fall into this bracket. We basically subtract the lower limit of the tax bracket from the upper limit (2.5 – 0 = 2.5). Second Bracket: 2.5 lacs to 5 lacs: Since your income is 9 lacs, the next 2.5 lacs fall into this bracket. ...
Excise taxes are a type of tax charged for specific goods and services, such as alcohol, tobacco, fuel, and airline tickets.
Excise Tax vs Sales Tax Lesson Summary Frequently Asked Questions What is the purpose of excise tax? The purpose of any tax is to raise money for the government. A secondary objective for the excise tax is to drive a good's price higher than normal to hopefully limit the consumption of th...
Pre-Tax Income = Revenue – Expenses (excluding Taxes) How to Calculate Pretax Income? Step 1: Calculating Revenue:This item shows the income the business generates from selling its goods or rendering services. Earnings from the actual business of the entity are shown here. Other income, like...
What is the formula for calculating net income? The basic net income formula is: Total revenue - total expenses = net income Is net income calculated after tax? Yes, net income is always an after-tax figure. Businesses sometimes report other measures of profitability before net income, but th...
Earned income is subject to different taxes than unearned income. In the United States, earned income is subject to payroll taxes. The tax rate for theMedicare taxis 1.45% each for the employer and employee, for a total of 2.9%. TheSocial Security taxis 6.2% each for the employer and empl...
A value-added tax (VAT) is a consumption tax that is levied at every stage of production for a good or service at which value has been added. Every business in the production process receives a VAT tax credit for the VAT that has been paid except for the final consumer, who pays the...