•What is income tax –Best income tax lawyer in lucknow

1. What is income tax –Best income tax lawyer in lucknow By https://legaladvicekart.com/ Mob: +91 91 70796 177 E-Mail:info@legaladvicekart.com

2. Point of presentation Introduction BRIEF HISTORY OF INCOME TAX HEADS OF INCOME IMPORTANT TERMS EXEMPTION AND DEDUCTION TAX SALB importance of income lawyer

3. INTRODUCTION WHAT IS TAX AND WHY TAX IS REQUIRED ? Tax is a financial obligation imposed by governments on individuals, businesses, or other entities within their jurisdiction. Its primary purpose is to generate revenue that the government can then use to fund public services and infrastructure such as education, healthcare, transportation, and defense. Taxes come in various forms, including income tax, sales tax, property tax, and corporate tax. There are several reasons why taxes are necessary. First and foremost, taxes provide the government with the funds needed to finance essential public services and projects that benefit society as a whole. These services include maintaining roads and bridges, funding public schools and universities, providing healthcare services, and ensuring public safety through law enforcement and emergency services.

4. BRIEF HISTORY OF INCOME TAX The history of income tax in India dates back to the colonial era. The British colonial government introduced income tax in India through the Income Tax Act of 1860. Initially, it was a tax primarily levied on income earned from land and property. In 1886, a revised Income Tax Act was enacted, expanding the scope of taxable income to cover various sources such as salaries, profits from businesses, and professional earnings. However, this early form of income tax faced significant opposition and was eventually repealed in 1888.

5. BRIEF HISTORY OF INCOME TAX The modern income tax system in India took shape with the passage of the Income Tax Act of 1918, which was based on the recommendations of the All India Income Tax Committee. This act introduced a more comprehensive income tax structure, including different tax rates for different income brackets and provisions for exemptions and deductions. After India gained independence in 1947, the Income Tax Act of 1961 was enacted, replacing the previous legislation. This act formed the basis of India's current income tax regime and has undergone numerous amendments and revisions over the years to adapt to changing economic conditions and tax policies.

6. BRIEF HISTORY OF INCOME TAX Key milestones in the evolution of income tax in India include the introduction of the Direct Tax Code (DTC) in 2010, which aimed to simplify and rationalize the tax system. However, the DTC has not been implemented in its entirety, and many of its provisions were incorporated into subsequent amendments to the Income Tax Act of 1961. Today, India's income tax system is progressive, with tax rates varying based on income levels. It covers a wide range of income sources, including salaries, business profits, capital gains, and other sources of income. The income tax collected contributes significantly to government revenue and is used to fund public services and development initiatives across the country.

7. HEADS OF INCOME Income from Capital Gains Income from Salary Income from House Property Income from Other Sources Profits and Gains of Business or Profession

8. IMPORTANT TERMS OF INCOME TAX Assessment Year (AY): The assessment year is the year immediately following the financial year in which income is earned and assessed for taxation. Financial Year (FY): Also known as the fiscal year, the financial year is the 12-month period during which income is earned. In India, the financial year runs from April 1st to March 31st of the following year.

9. IMPORTANT TERMS OF INCOME TAX Taxable Income: Taxable income refers to the total income earned by an individual or entity during a financial year after applying deductions, exemptions, and adjustments allowed under the Income Tax Act. Gross Total Income (GTI): Gross Total Income is the sum of income earned under all heads (salary, house property, business or profession, capital gains, and other sources) before any deductions or exemptions.

10. IMPORTANT TERMS OF INCOME TAX Income Tax Return (ITR): An Income Tax Return is a form filed by taxpayers with the tax authorities, declaring their income, deductions, and tax liability for a specific financial year. Tax Deduction at Source (TDS): TDS is a mechanism through which a specified percentage of tax is deducted by the payer at the time of making payments such as salaries, rent, interest, etc.

11. IMPORTANT TERMS OF INCOME TAX Tax Assessment: Tax assessment is the process through which tax authorities examine and verify the taxpayer's income, deductions, and tax payments to determine the correct tax liability. Tax Exemptions and Deductions: Tax exemptions and deductions are provisions under the Income Tax Act that allow taxpayers to reduce their taxable income. Advance Tax: Advance tax refers to the payment of taxes on income throughout the financial year, in installments, as per prescribed due dates.

12. EXEMPTION AND DEDUCTION Exemptions: • Basic Exemption: Every taxpayer is entitled to a basic exemption limit, below which no income tax is levied. The limit varies based on the taxpayer's age and residential status. • HRA Exemption: House Rent Allowance (HRA) received by salaried individuals is partially exempt from tax, subject to certain conditions. • Leave Travel Allowance (LTA): Exemption is available on expenses incurred for travel within India for self and family, subject to specified limits and conditions.

13. EXEMPTION AND DEDUCTION • Gratuity: Gratuity received by employees upon retirement or termination is exempt from tax up to a certain limit based on the provisions of the Payment of Gratuity Act. • Certain Allowances: Specific allowances such as travel allowance, conveyance allowance, children's education allowance, and others are exempt from tax up to prescribed limits. • Agricultural Income: Agricultural income earned by individuals is generally exempt from income tax, although it's included for computing tax on non-agricultural income.

14. EXEMPTION AND DEDUCTION Deductions: • Section 80C: Deductions are available for investments in instruments such as Public Provident Fund (PPF), Employee Provident Fund (EPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), life insurance premiums, tuition fees, and principal repayment of home loan, subject to a cumulative limit. • Section 80D: Deductions are available on premiums paid for health insurance policies for self, spouse, dependent children, and parents. Additional deductions are available for premiums paid for senior citizens.

15. EXEMPTION AND DEDUCTION Deductions: • Section 80G: Donations made to specified charitable institutions and funds are eligible for deduction, subject to prescribed limits. • Section 80E: Deduction is available on interest paid on education loans taken for higher education for self, spouse, or children. • Section 80TTA and 80TTB: Deductions are available on interest income earned from savings accounts and specified deposits for individuals and senior citizens, respectively.

16. Tax Slabs Individuals (Up to 60 years old) and Hindu Undivided Families (HUFs): • Income up to Rs. 2.5 lakh: No tax (Basic exemption limit) • Income from Rs. 2.5 lakh to Rs. 5 lakh: 5% • Income from Rs. 5 lakh to Rs. 10 lakh: 20% • Income above Rs. 10 lakh: 30% Senior Citizens (Aged 60 to 80 years): • Income up to Rs. 3 lakh: No tax (Basic exemption limit) • Income from Rs. 3 lakh to Rs. 5 lakh: 5% • Income from Rs. 5 lakh to Rs. 10 lakh: 20% • Income above Rs. 10 lakh: 30%

17. Tax Slabs Very Senior Citizens (Aged 80 years and above): • Income up to Rs. 5 lakh: No tax (Basic exemption limit) • Income from Rs. 5 lakh to Rs. 10 lakh: 20% • Income above Rs. 10 lakh: 30% Cess: 4% of corporate tax Surcharge: If the taxable Income is more than Rs.1 crore but less than Rs.10 crore, the surcharge levied is 7%. If the taxable Income is more than Rs.10 crore, the surcharge levied is 12%. Non-resident Indians: For non-resident Indians, irrespective of their age, the exemption limit is up to Rs.2.5 lakh. Important Points In case your net Income is more than Rs.50 lakh but less than Rs.1 crore, apart from a 4% cess, a 10% surcharge is also levied. If the net is above Rs.1 crore, a 15% surcharge is levied. Compared to last year's budget, cess has increased from 3% to 4%.

18. importance of income lawyer An income tax lawyer plays a crucial role in navigating the complexities of income tax laws and regulations. Here are some key aspects highlighting the importance of an income tax lawyer: Compliance and Legal Advice Tax Disputes and Litigation Tax Planning and Optimization • Representation in Criminal Tax Matters Cross-Border Taxation Estate and Inheritance Tax Planning

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