please explain
This query is : Resolved
11 May 2010
will you pleas explain these terms of incom tax, Act
1.advance tax
2.TDS
3.marginal relief
4.educational cess
please explain that terms in simple language
1.advance tax
2.TDS
3.marginal relief
4.educational cess
please explain that terms in simple language
11 May 2010
1. ADVANCE TAX > is the amount of tax which a taxpayer has to deposit in advance on the estimated income for the Financial year. It is deposit during the Financial year to which the income belongs. For ex. Advance Tax for FY 2010-2011 (AY 2011-2012) needs to be depoisted during FY 2010-2011 only.
2. TDS means TAX DEDUCTED at SOURCE. It means the amount of tax which is deducted by the person making the payment on the income of the other person which will arise because of the payment made. It indicates the tax deducted at the source of Income itself. For ex. A makes payment of Rs.10,000 to B for services. Then A will deduct Tax amount on the income of Rs.10,000 of B. This tax on Income of B is deduct at the source of income itself.
3. MARGINAL RELIEF is the Adjustment in the amount of income tax payable by a firm whose taxable income is just over the upper limit of a tax bracket (or band). Marginal relief is deducted from the total tax amount and is available usually only to small firms.
In other words, It is given to the persons whose taxable income exceeds certain limit marginally but tax on the income brings his after tax balance below the lower level slab. In that case he his given relief so that his after tax balance does not go below the lower tax slab .
4. EDUCATIONAL CESS > Cess is used to describe a tax on a tax, so in eductaion cess is the tax levied on Income tax in order to provide funds for the education purpose.
2. TDS means TAX DEDUCTED at SOURCE. It means the amount of tax which is deducted by the person making the payment on the income of the other person which will arise because of the payment made. It indicates the tax deducted at the source of Income itself. For ex. A makes payment of Rs.10,000 to B for services. Then A will deduct Tax amount on the income of Rs.10,000 of B. This tax on Income of B is deduct at the source of income itself.
3. MARGINAL RELIEF is the Adjustment in the amount of income tax payable by a firm whose taxable income is just over the upper limit of a tax bracket (or band). Marginal relief is deducted from the total tax amount and is available usually only to small firms.
In other words, It is given to the persons whose taxable income exceeds certain limit marginally but tax on the income brings his after tax balance below the lower level slab. In that case he his given relief so that his after tax balance does not go below the lower tax slab .
4. EDUCATIONAL CESS > Cess is used to describe a tax on a tax, so in eductaion cess is the tax levied on Income tax in order to provide funds for the education purpose.
11 May 2010
thanx buddy
11 May 2010
advance tax k exaples bhi bata do pls
11 May 2010
matlab agar hum kisi ko payment kar rahe hai or wo amount osk liye income hai to wo income hamare liye TDS hoga???????
11 May 2010
Welcome friend..
Example of Advance Tax >
Suppose if you estimated that The Tax liability for your Income in FY 2010-2011 is going to be Rs.15000. Then as per Advance Tax rules you are required to deposit the tax in the FY 2010-11 i.e upto 31st March,2011.
Example of Advance Tax >
Suppose if you estimated that The Tax liability for your Income in FY 2010-2011 is going to be Rs.15000. Then as per Advance Tax rules you are required to deposit the tax in the FY 2010-11 i.e upto 31st March,2011.
11 May 2010
If you are making payment to other then it will be income for other person and he has to pay tax.
TDS rule says that the tax liability on this income of other perosn will be deducted by you and you will deposit the TDS with the government. For this Govt. has given the TDS rates at which the tax wiil be deducted by you.
I hope it make syou more clear .
Regards
TDS rule says that the tax liability on this income of other perosn will be deducted by you and you will deposit the TDS with the government. For this Govt. has given the TDS rates at which the tax wiil be deducted by you.
I hope it make syou more clear .
Regards
Message likes :
1 times
11 May 2010
that means TDS is beneficialy for assesee?
and thanks friend for giving me ur time....
and thanks friend for giving me ur time....
11 May 2010
and if estimated income is more or less amount as compare to actual income then wat will be its effect?
11 May 2010
Yes. TDS is for beneficial for assesse and ther person whose TDS is deducted can claim that amount as tax paid at the time of filing its Income Tax return.
11 May 2010
Practically it mostly happens that the estimated income is different from the actual income.
In such case you can submit the balance tax amount before filing the return income.
However if the amount of balance tax is more than Rs.10,000 then you have to pay the interest @1% p.m starting April 1, till such time the outstanding amount is paid.
In such case you can submit the balance tax amount before filing the return income.
However if the amount of balance tax is more than Rs.10,000 then you have to pay the interest @1% p.m starting April 1, till such time the outstanding amount is paid.
Message likes :
1 times
12 May 2010
thanks buddy,,,,
now concept it clear.....
now concept it clear.....
12 May 2010
You are most welcome...Dost
12 May 2010
waise surcharge pochna bhul gaya tha mai?
can you explain surcharge also??
can you explain surcharge also??
12 May 2010
Surcharge means a charge added on top of another charge.It is the amount added on to a usual charge for a specific product, purpose, or service.
In Income Tax point of view, Surcharge is levied on teh Income Tax which itself is a charge on Income.
I hope it clarifies your doubts.
In Income Tax point of view, Surcharge is levied on teh Income Tax which itself is a charge on Income.
I hope it clarifies your doubts.
12 May 2010
surcharge ka exmple bhi bata do pls......then it will be clear
12 May 2010
Tax Amount > 25000
Add Surcharge @10% > 2500
Total Tax Laibility > 27500.
Add Surcharge @10% > 2500
Total Tax Laibility > 27500.
12 May 2010
thanks friend.......for giving me ur valuable time
thanks a lot
thanks a lot
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
