1053(Income tax) What is the difference between Exempt , specified and taxable income? (Concept) Case Methodology - Harvard Case Model Narration - By Amlan Dutta Video Link - https://youtube/watch?v=297wc9b-3wc The subject is income tax , however there is certain income whic is exempt from the levy of tax . Covered under section 10 of the act , such income is termed exempt income . Few popular examples would be Long term capital gain on stocks , Dividends on local companies , PF interest gratuity , etc etc All other income are taxable .Now income is classified under 5 heads -salary , capital gains , House property , business profession and other sources . Income from all this heads added together and adjusted for losses and factored for savings under chapter VIA give rise to total income chargeable to tax as per slabs However id total income is formed of specific income lie STCG on securities or LTCG or income from lotteries , then the revenue specifies the tax rate for such specified income at specified rates For example , STCG on securities at 15 % , LTCG at 20 % with indexation and 10 % without indexation (112 A) , 30 % on lottery gains etc etc All other income subject to normal tax is taxable income ! Hope this helps , Amlan Dutta
Posted on: Sun, 02 Nov 2014 18:18:26 +0000
Trending Topics
Recently Viewed Topics
© 2015