Direct Taxes 2012-2013 Main Points For writing Essay

Tax proposals for 2012-13 main points for writing essay or an article for competitors appearing in forthcoming competition. . It can be also taken as GK tips.

*Exemption limit for the general category of individual taxpayers enhanced from Rs 1,80,000 to Rs 2,00,000 giving tax relief of Rs 2,000.

* Upper limit of 20 per cent tax slab raised from Rs 8 lakh to Rs 10 lakh.

*Individual tax payers got a deduction of upto Rs 10,000 for interest from savings bank accounts.

*Deduction of up to Rs 5,000 for preventive health check up.

India Income tax slabs 2012-2013 for various type of Payers

India Income tax slabs 2012-2013 for General tax payers
Income tax slab (in Rs.)	Tax Rate
0 to 2,00,000	No tax
2,00,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

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Essay Hints on INCOME TAX RETURN |

It is compulsory for every company to furnish return of income.

Every person, other than a company, whose total income from all

sources of income exceeds the maximum amount which is not

chargeable to income tax in any previous year ending on 31st March is liable to file the Income-tax Return. The maximum limit of income not chargeable to tax under the provisions of the Income Tax Act, 1961 is

Main Points of the Income Tax-2011-12

In his budget for the coming financial year, Finance Minister Pranab Mukherjee on Monday announced raising the personal income tax exemption limit from 160,000 rupees to 180,000 rupees in FY2012.

Qualifying age for senior citizens will be reduced to 60 years from 65 years while the exemption limit will be increased from 2,40,000 rupees to 2,50,000 rupees, Mukherjee said.

The finance minister also proposed the creation of a new category of very senior citizens aged above 80 years, who will be eligible for a higher exemption limit of 5,00,000 rupees.

Except this every thing is more or less same as it was in 2009-10

WHAT ARE THE RATES OF INCOME-TAX ?

Income Tax (Rates for  Assessment Year 2011-2012)

For individual and  H.U.F.

Upto Rs. 1,60,000 -Nil

Rs. 1,60,001    to    Rs. 5,50,000 --10%

Rs. 5,00,001    to   Rs.   8,00,000 --20%

Above Rs. 8,00,000 ---30%

For Women, resident in India and below the age of 65 years :

Upto Rs. 1,90,000 ---Nil

Rs. 1,90,001 to Rs. 5,00,000 --10%

Rs. 5,00,001 to Rs. 8,00,000 --20%

Above Rs. 8,00,000 --30%

For Senior Citizen and Women, age 65 years or more :

Upto Rs. 2,40,000-- Nil

Rs. 2,40,000  to Rs. 5,00,000 --10%

Rs. 5,00,001 to Rs. 8,00,000 --20%

Above Rs.  8,00,000 --30%

Surcharge on Income tax:- @10% shall be levied when income

mentioned in the above tables exceeds Rs. 10 lakhs.

Education Cess @ 2% on income-tax is also chargeable and an

additional levy of Secondary and High Education Cess is also payable

@1% for the A.Y. 2008-09.

WEALTH TAX RETURN

Every Individual, Hindu Undivided Family and Company whose

net wealth exceeds the maximum amount which is not chargeable to

wealth tax in any previous year ending of 31st March is liable to file the wealth tax return. The maximum limit of net wealth not chargeable to tax under the provisions of the Wealth tax Act, 1957 is Rs. 15 lakhs at present.

WHAT IS NET WEALTH ?

Net wealth is the aggregate value, computed under the provisions

of the W.T. Act, 1957, of all assets (including deemed assets), belonging to the assessee on the valuation date, MINUS the aggregate value of all debts owed by the assessee on the valuation date which have been taken in relation to the assets attracting wealth tax.

HOW IS WEALTH TAX CHARGED ?

It is charged @ 1% of the amount by which the net wealth exceeds

Rs. 15 Lakhs.

DUE DATES FOR FILING TAX RETURNS- 31 October of the Assesment Year

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Essay on taxation system | Essay about Tax

                                                             Total- 1348 Word

Meaning of Tax:

The word  tax came from the Latin word taxo which means- "I estimate" . Tax  is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. A tax may also be defined as a "pecuniary burden laid upon individuals or property owners to support the government , A payment exacted by legislative authority."

Taxes consist of direct tax or indirect tax,

The legal definition and the economic definition of taxes differ in that economists do not consider many transfers to governments to be taxes. In modern taxation systems, taxes are levied in money. Tax collection is performed by a government agency such as Canada Revenue Agency in Canada, the Internal Revenue Service (IRS) in the United States, or Her Majesty's Revenue and Customs (HMRC) in the UK and Incometax Department in India.

Discussion:

Income tax has always been making a significant impact on any country’s economy. Very high or low income tax does not necessarily mean to aid economy of any country. An optimum income tax rate depending upon country’s economical, social goals is necessary in order to realize the real benefits of income tax. I would like to support my views on this topic in following paragraphs.

First, income tax is a key driver for any country to grow and provide sufficient facilities to its citizens. If there is no income tax in the country then it is very difficult to fund the systems like army, police, industry and agriculture, which are backbones for any country’s economical growth. For example without having police in the society it is almost impossible to protect citizens and provide necessary security for the industries from stealing their products. In absence of police, various industries will have to hire their own security, which will negatively impact on the industries performance since they have to spend lot of money on the security. Same thing with the army; in absence of army it is impossible to protect the people from outside enemies in case of war or terror attacks. Thus in order to have smooth functioning of all the systems mentioned above there must of some income tax posed on countries citizens all over the world.

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