DIRECT TAX

Definition: Ad valorem tax is a tax levied on the value of property, goods, or services at the time of sale or transfer. It is a type of indirect tax that is paid on the basis of the assessed value of the property or item. Formula: The ad valorem tax is calculated based on the […]

A taxpayer is an individual or corporation that is required to pay taxes to a government agency. In the United States, the Internal Revenue Service (IRS) is the agency responsible for collecting taxes. Types of taxpayers: Individuals: Natural persons who are employed, own businesses, or have investments. Corporations: Legal entities that are taxed as separate […]

cess on income tax A cess on income tax is a surcharge levied on income in addition to the regular income tax. It is imposed by the government as a means of raising additional revenue. Rate of cess: The cess rate varies from country to country. In India, for example, the current cess rate is […]

Tax arbitrage Tax arbitrage is a strategy that involves exploiting differences in tax rates across various jurisdictions to minimize or eliminate taxes. It involves shifting the residency or business operations to jurisdictions with lower tax rates, thereby reducing the overall tax burden. Types of Tax Arbitrage: Individual Tax Arbitrage: Moving residences to jurisdictions with lower […]

A tax bracket is a range of income levels that are taxed at the same rate. The income levels in a tax bracket are defined by the tax code and are used to calculate the amount of tax owed for a particular income level. There are typically several tax brackets, with each bracket having a […]

tdr tax deduction and collection account number: Tax deduction: The Tax Deduction for Trust Income Relief (tdr) allows eligible trusts to exclude up to $25,000 of income from their taxable income. To qualify for the deduction, the trust must meet certain requirements, such as having a beneficiary who is a U.S. citizen or resident alien. […]

Direct Tax Direct tax is a type of tax that is levied directly on individuals and corporations. It is collected by governments at the source of income or consumption. Examples of direct taxes include income tax, corporate tax, property tax, and excise tax. Key Features of Direct Tax: Levied directly on individuals and corporations: The […]

Travelling Allowance A travelling allowance is a sum of money provided to an employee or officer to cover the expenses incurred while travelling for business purposes. It is usually a fixed amount or a percentage of the employee’s salary. Eligibility: Employees who are required to travel for business purposes. Officers who travel on official duty. […]

House Rent Allowance (HRA) House Rent Allowance (HRA) is a tax-exempt allowance provided by employers to their employees as a reimbursement for rent paid for residential purposes. It is a common employee benefit in India. Eligibility: Employees employed in India Employer-provided accommodation is not available or is inadequate Employee’s total salary is below a certain […]

Definition: A tax haven is a country or territory that offers low or no taxation on individuals and corporations, often through aggressive tax avoidance policies and exemptions. These countries typically have low corporate and personal income tax rates, as well as exemptions on various forms of income and assets. Characteristics: Low taxation: Countries with exceptionally […]