TAXATION

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 […]

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 […]