An income tax is a tax imposed on individuals or entities (taxpayers) that varies with their respective income or profits (taxable income).
Many jurisdictions refer to income tax on business entities as companies tax or corporate tax.
Income tax generally is computed as the product of a Tax rate times taxable income. The tax rate may increase as taxable income increases (referred to as graduated or progressive rates). Taxation rates may vary by type or characteristics of the taxpayer.Capital gains may be taxed at different rates than other income.Taxable income of taxpayers resident in the jurisdiction is generally total income less income producing expenses and other deductions. Generally, only net gain from sale of property, including goods held for sale, is included in income. Deductions typically include all income producing or business expenses including an allowance for recovery of costs of business assets. Many jurisdictions allow notional deductions for individuals, and may allow deduction of some personal expenses. Most jurisdictions either do not tax income earned outside the jurisdiction or allow a credit for taxes paid to other jurisdictions on such income. Non residents are taxed only on certain types of income from sources within the jurisdictions, with few exceptions.
Most jurisdictions require self-assessment of the tax and require payers of some types of income to withhold tax from those payments. Advance payments of tax by taxpayers may be required. Taxpayers not timely paying tax owed are generally subject to significant penalties, which may include jail for individuals or revocation of an entity’s legal existence.
Income Tax Services
We offers income tax services that comprise taxation on income earned in a financial year a part of which is taxable as per rates prescribed for that year. With the financial year running from 1 April to 31 March of following year, broadly taxpayers are classified as residents or non-residents where the individual taxpayers can be classified as ‘residents but not ordinary residents’. Our team of tax consultants and financial advisors also allows us to offer Income tax consultancy services that are aimed at offering business solutions to Manufacturers, Traders, Dealers as well as Service providers of industry.
An individual is considered resident in India if he is in India in tax year for: 182 days or more; 60 days or more where the period of 60 days stands changed to 182 days or more for – • Indian citizens/persons of Indian origins on visit to India • For citizens of India leaving India for employment abroad as members of crew of Indian ship during tax year • A resident is “not ordinarily resident” in India in any tax year if he: • Has been “non-resident” in India in nine out of 10 previous years preceding that year • Has during previous seven years, preceding that year been in India for total period of 729 days/less