Bank Theory

Tax Planning - Bank Theory Tax Planning 1. Classification of Tax Structure in India India follows a dual tax structure comprising: Direct Taxes (e.g., Income Tax, Corporate Tax) Indirect Taxes (e.g., GST, Excise, Customs Duty) 2. Financial Year, Assessment Year & Previous Year Financial Year (FY): Period from 1st April to 31st March when income is earned. Assessment Year (AY): The year following the Financial Year when the income is assessed and taxed. Previous Year: Same as Financial Year – the year in which income is earned. 3. Residential Status The residential status determines the scope of taxable income. It is categorized into: Resident and Ordinarily Resident (ROR) Resident but Not Ordinarily Resident (RNOR) Non-Resident (NR) 4. Important Terms Gross Total Income: Aggregate income before deductions. ...

Taxation: Income Tax, TDS, Deferred Tax - Bank Theory Taxation: Income Tax / TDS / Deferred Tax Overview of Income Tax Act The Income Tax Act, 1961 is the statute under which income tax is levied and collected in India. It covers all aspects of taxation including income classification, computation, deductions, TDS/TCS, filing of returns, penalties, and recovery of taxes. Basic Overview of Deductions under Chapter VI-A Section 80QQB : Deduction for royalty income earned by Indian authors on books (other than textbooks), up to ₹3 lakhs per annum. Section 80RRB : Deduction for royalty on patents registered under the Patents Act, 1970 – maximum ₹3 lakhs. Section 80TTA : Deduction of interest on savings bank accounts up to ₹10,000 per annum (for non-senior citizens). Section 80U : Fixed deduction for individuals with disability – ₹75,000 for normal disability and ₹1,25,000 for severe disability. TDS/TCS Tax Deducted at Source (T...