Concept of Tax:
Concept of Tax Central Government collects taxes from citizens according to their income. One form is called Income tax. Income tax is direct tax which is decided depending upon the income of a person. In our country income tax originated from period of British. For any citizen if his income is more than a fixed income, he has to pay income tax. Income tax is one of the important sources of income for government.
Heads of Income:
Heads of Income Income from House property Income from Salaries Profit & Gains of business or profession Income from Capital Gains Income from Other sources
How to calculation of Income from house property(let out) ?:
Particular Rs. Rs. Rs . Gross Annual Value **** Less: Municipal taxes actually paid by the owner (***) Net Annual Value(NAV) **** Less: Statutory Deduction@ 30% of NAV *** - Interest on borrowed capital(Loan) *** (***) Income from let out house property **** How to calculation of Income from house property(let out) ?
Income from House property (Self occupied):
Particular Rs. Rs. Rs. Gross Annual Value Nill Less: Municipal taxes actually paid by the owner Nill Net Annual Value(NAV) Nill Less: Statutory Deduction@ 30% of NAV Nill - Interest on borrowed *** (***) capital(Loan) Income from let out house property (***) Its answer is always negative & zero Income from House property (Self occupied)
Slide 6:
Deduction of interest on borrowed capital In case of self occupied house property If following three condition are satisfy then interest will be limited to Rs. 1,50,000 Otherwise Rs.30,000 Loan should be taken on ‘or’ after 1 st April 1999. Loan should be taken from purpose of construction or purchase of property. Construction must be completed within 3 year.
Tax slab for Individuals & HUF A.Y. 2010-2011:
Tax slab for Individuals & HUF A.Y. 2010-2011 Senior citizens (up to 65 year) Woman below 65 year Other Percentage Up to Rs.2,40,000 Up to Rs.1,90,000 Up to Rs.1,60,000 Nill Rs.2,40,000- Rs.3,00,000 Rs.1,90,000- Rs.3,00,000 Rs.1,60,000- Rs.3,00,000 10% Rs.3,00,000- Rs.5,00,000 Rs.3,00,000- Rs.5,00,000 Rs.3,00,000- Rs.5,00,000 20% Rs.5,00,000 to above Rs.5,00,000 to above Rs.5,00,000 to above 30%
Tax slab for Individuals & HUF Budget of 2011:
Tax slab for Individuals & HUF Budget of 2011 Senior citizens (up to 65 year) Woman below 65 year Other Percentage Up to Rs.2,40,000 Up to Rs.1,90,000 Up to Rs.1,60,000 Nill Rs.2,40,000- Rs.5,00,000 Rs.1,90,000- Rs.5,00,000 Rs.1,60,000- Rs.5,00,000 10% Rs.5,00,000- Rs.8,00,000 Rs.5,00,000- Rs.8,00,000 Rs.5,00,000- Rs.8,00,000 20% Rs.8,00,000 to above Rs.8,00,000 to above Rs.8,00,000 to above 30%