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. ...