Direct tax code

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[object Object],[object Object],Annual Income Tax Slab Up-to INR 200,000 (for senior citizens 250,000) Nil Between INR 200,000 to 500,000 10% Between INR 500,000 to 1,000,000 20%

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Income tax is a tax that governments impose on individuals' earnings or income, including wages, salaries, dividends, interest, rental income, and other sources of income. The purpose of income tax is to generate revenue for the government to fund public services, infrastructure, and other expenditures. Income tax is usually progressive, meaning that higher-income individuals are taxed at higher rates. Tax rates and brackets can vary significantly between countries, and some countries may also have different tax rates for different types of income (e.g., earned income vs. investment income). Taxpayers are typically required to file tax returns annually, reporting their income and calculating the amount of tax they owe based on the applicable tax rates and deductions. Taxpayers may also be eligible for various tax credits and deductions that can reduce their taxable income or the amount of tax they owe. Governments use various methods to collect income tax, such as withholding taxes from paychecks (pay-as-you-earn or PAYE system), estimated tax payments for self-employed individuals, and annual tax return filings for individuals and businesses. Overall, income tax is a crucial component of a country's tax system, providing essential revenue for government operations and public services while also influencing economic behavior and wealth distribution. 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. Additionally, taxes play a crucial role in redistributing wealth and reducing economic inequality. Progressive tax systems, for instance, require higher-income individuals to pay a larger percentage of their income in taxes, while lower-income individuals pay a lower percentage. This helps ensure that wealthier individuals contribute proportionally more to society's needs and helps fund social welfare programs that support disadvantaged populations. Furthermore, taxes can be used as a tool to influence economic behavior and achieve policy objectives. For example, governments may use tax incentives or penalties to encourage environmentally friendly practices, promote investment in specific industries or regions, or discourage harmful activities such as smoking or excessive consumption of sugary drinks. In summary, taxes are necessary for funding public services, reducing economic inequality, and achieving various policy goals that benefit society as a whole. While they may be a source of contention for some, they are a fundamental aspect of modern governance and play a vital role in shaping the economic and social landscape of a country.

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In the rule, income tax refers to a percentage of your salary that you must pay to the government. During this immediate duty course, the Government uses the money collected for infrastructure improvements and to pay workers for focal and state government agencies. Direct taxes and indirect taxes are the two most common types of taxes. Direct taxes, such as income tax, are imposed directly on the pay obtained. During that monetary year, the rates that apply to the pay sections determine the tax estimation.

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The much-awaited Budget is finally out.Finance Minister Shri Arun Jaitley announced the Union Budget 2018-19 on 01st February. Overall, the government in an effort to achieve its objective of reducing poverty, expediting infrastructure creation and building a strong, confident and a New India, in its Budget, has retained its focus on giving a push to the rural economy and the agricultural sector. Corporate India shall be majorly benefited by rationalization of corporate Income Tax to 25% whereby 99% of the corporate tax payers who clock turnover below. Rs. 250 Cr in the previous year will be benefited. We at APMH are determined to demystify the budget from a compliance angle and are excited to present our "Union Budget E - Booklet 2018-19 on various developments in Direct & Indirect Taxes announced in the Union Budget and their implications for Businesses. Understand how Union Budget 2018 will impact you with in-depth analysis and insights from our tax and industry experts. We are sure that it will prove as a useful reference material for you and your team throughout the year.

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