Presentation

on
Taxation
 History

Income tax is today an important source of

revenue for government in all the countries.
More than 3,000 years ago, the inhabitants of
ancient Egypt and Greece used to pay income
tax, consumption taxes and custom duties.
Income-tax was first introduced in India in 1860
by James Wilson who become Indians first
Finance Member.
 Income-tax Authorities.
Central Government :- income-tax, Excise Duty
and Customs Duty.
State Governments :- sales tax, VAT, Excise and
tax on agricultural income.
Municipalities :- Octroi and House property tax.
 Defination
Income :- Income means some monetary returns
periodically received from some definite source.
Assesses :- A person liable to pay any tax or any
other sum of money under this Act.
Person :- According to law an assessee is a
person by whom any tax is payable.
Person includes
- An individual- A firm
- A HUF - A local authority
- A company
 Assessment years :- It is a year in which the
income of the Previous year is to be assessed.
The current assessment year is 2011-12.
Previous years :- Previous years means financial
year immediately preceding the assessment year.
Previous years for this assessment year would be
2010-11.

Previous Year
2010-11
Assessment Year
2011-12
Total Income of an Individual
Assessee.
Salary Income.
House Property.
Business or Profession.
Capital Gains.
Income from other source.
Statement showing taxable
income from Salary.
PARTICULAR
Basic Salary ....
Bonus .
Commission .
Allowances .
Perquisites .
Gross Salary XXX
Less:- Specific deduction .
Taxable income from salary XXXX
Statement showing taxable
income from House Property.
PARTICULAR LOP DLOP SOP
Gross Annual Value . . 0
Less:- Local Tax, Mu. Tax 0
Net Annual Value XXX XXX 0
Less:- Specific deduction
1.Std. dedu. (30% of NAV) . . 0
2. Int. on Loan . . .
Taxable Income/Loss of XXXX XXXX XXXX
House Property.
 Statement showing taxable
income from Business or
Profession.
PARTICULAR
Net Profit (P&L A/c) .
Less: Other Heads of Income (P&L A/c) .
Less: Other Income (Cr. P&L A/c not taxable) .
Add: Inadmissible Exp. (Dr. to P&L A/c) .
Less: Inadmissible Exp. (not claimed) .
Add: Taxable Business Income Not recorded .
Taxable Business Income XXX
 Statement showing Taxable
Income
PARTICULAR
Salary Income .
Add: House Property .
Add: Business or Profession ....
Add: Capital Gains .
Add: Income from other source .
Gross Total Income XX
Less: General Deduction .
Taxable Income XXX
Value Added Tax Act, 2003

The value addition by a producer is the addition

in its final sales value due to its performance over
the cost of raw material plus services purchased
from outside.
The two concept VAT.
1. Trader
2. Manufacture.
VAT = Net Sales Value Total cost of good