TAXATION

Tax Liability Tax liability is the amount of tax owed by an individual or business to a government agency. It is calculated based on a number of factors, including income, property value, and consumption expenditures. Factors Affecting Tax Liability: Income: The higher your income, the higher your tax liability. Property Value: If you own property, […]

Tax Deducted at Source (TDS) Tax deducted at source (TDS) is a mechanism in India where the payer is required to deduct a certain percentage of tax at the source of income or payment and remit it to the government on behalf of the payee. The TDS is applicable to various income sources, including salaries, […]

Travel Expenses: Travel expenses include a wide range of costs associated with traveling, such as: 1. Transportation:– Airfare- Bus fare- Train fare- Ferry ticket- Rental car costs (gas, insurance, parking) 2. Accommodation:– Hotel room rates- Hostels- Airbnb- Other lodging expenses 3. Food:– Restaurant meals- Grocery stores- Cafés- Drinks 4. Activities:– Admission fees to attractions- Guided […]

Taxable income is the portion of your gross income that is subject to taxation. It is calculated by subtracting certain deductions and exclusions from your gross income. Formula for taxable income: Taxable income = Gross income – Deductions – Exclusions Examples: If your gross income is $50,000, and you have deductions of $10,000 and exclusions […]

Dividend Distribution Tax (DDT) Dividend distribution tax (DDT) is a tax levied on individuals and corporations in India when they receive dividends from domestic or foreign companies. It is a withholding tax, meaning that the payer is responsible for deducting and withholding the tax at the time of payment. Rate of DDT: 10% for individuals […]

A principal residence is a home that is primarily used as the owner’s primary dwelling place. It is typically the owner’s primary place of abode and where they spend the majority of their time. Key characteristics of a principal residence: Primary residence: It is the owner’s main home, where they legally reside. Primary dwelling place: […]

Sure, here is the meaning of tax base: Tax base – The taxable income or value of an asset used to calculate the tax owed. It is the income or value on which taxes are levied. In other words, the tax base is the amount of money that a person or corporation is required to […]

Representative Assessee A representative assessee is a person who is appointed by the assessee to represent and act on his behalf in matters related to taxation. The representative assessee is responsible for filing the assessee’s income tax return, paying taxes on his behalf, and representing him in any tax proceedings. Eligibility: Any person who is […]