DIRECT TAX

Definition: A benefactor is a person who is generous in providing financial or other assistance to others, often through charitable contributions. Etymology: The word “benefactor” derives from the Latin word “benefactor,” which means “one who benefits.” Notable Benefactors: Bill Gates: Founder of the Bill & Melinda Gates Foundation, the largest private charity in the world. […]

Active Income Active income is any income earned through the performance of services that are related to the owner’s own skills, efforts, and knowledge. It is income that is generated from sources that require the use of the owner’s personal abilities, rather than from the ownership or sale of assets. Examples of Active Income: Salary […]

Definition: The income tax rate is a percentage of a taxpayer’s taxable income that is paid to the government as income tax. It is a progressive tax rate, meaning that the rate increases with the amount of income earned. Calculation: The income tax rate is calculated based on a taxpayer’s taxable income and the applicable […]

Sure! Here are the definitions of “education cess” and “education cess” as per Wikipedia: Education cess: The term “education cess” is a slang term that refers to the practice of not educating someone. It is sometimes used in a humorous way, but it can also be used in a derogatory way. Education cessame: The term […]

Definition: A tax credit is a reduction in the amount of income tax liability that is allowed for eligible taxpayers. It is a direct reduction of the tax owed, rather than a deduction of expenses. Types of Tax Credits: Permanent tax credits: These credits are available to taxpayers on a permanent basis. Temporary tax credits: […]

Definition: Property tax is a levy imposed by local government authorities on owners and occupants of property. It is a major source of revenue for governments, used to fund essential services such as schools, police, fire protection, and infrastructure. Formula for Calculating Property Tax: The property tax rate is typically calculated using a formula that […]

The alternative minimum tax (AMT) is a US tax calculation method used to ensure that certain taxpayers pay a minimum amount of tax, regardless of their income level or deductions. It’s designed to prevent complex tax avoidance strategies and ensure fairness. Key features: Separate tax rate: The AMT applies a separate tax rate, usually 22%, […]

Business Expenses Business expenses are costs incurred in the course of business operations that are not related to the generation of revenue. They include a wide range of items, such as: Common Business Expenses: Rent and utilities: Rent, utilities (electricity, gas, water, etc.), and depreciation of rental property. Depreciation and amortization: Depreciation of assets used […]

Definition: Dependent is a term used in mathematics and statistics to describe a variable that is influenced or determined by another variable, known as the independent variable. Explanation: Independent variable: The variable that is not influenced by any other variable and is the cause of variation. Dependent variable: The variable that is influenced or depends […]

Tax Avoidance Tax avoidance is the act of minimizing or avoiding the payment of taxes owed to a government. It can take various forms, including: 1. Legal Methods: Transfer pricing: Shifting profits to subsidiaries in low-tax countries. Intangible assets: Utilizing intangible assets, such as patents or copyrights, to reduce taxable income. Debt manipulation: Using debt […]