1102(Income Tax) Poora tax credit statement ka concept ko paani paani kar dey? Project - Make Knowledge Free Case Methodology - Harvard Case Model Video Link - https://youtube/watch?v=O9YMmUSt3Hg Narration - By Amlan Dutta Case Build Up - There are topics where i wont get tired even after making repeated tuts on the same subject and this is one subject which i think is very important for me to cover ! Lets break the word tax credit - Credit of taxes for whom --obviously the taxpayer ---for what period ---depending on which assessment year taxpayer is looking for ! Implying that every year , the tax credit statement is a different statement for the taxpayer . Yes , you see tax filing is a yearly process and every financial year is assessed separately For every financial year you as a individual/HUF/Firm/Corporative society /Company/Trust /AOP/BOI person will have to note down income from applicable heads , the savings you do , adjust to arrive at total income and then compute the taxes applicable on such taxable total income ! Then you will have to pay the tax liability on such total income using tax credit available against your account for that specific year and this process you have to do every year ! So every year you have a different total income ,a different savings , a different tax liability and separate tax credit to meet the tax liability ...the figures may be same but you repeat the process every year ! So what exactly is this tax credit ! You see , i got salary income and derived FD interest income for the PY 2013 14 ... but did i get full income ...no this buddhus deducted something calles as TDS ...i wont blame them ..being a part of india, they are governed by the law of the land and therefore the IT ACT 1961 and therefore they have to deduct tax on any expense as laid down in proviosions of the act ! So for salary , employer deduct under section 192 as per income slabs and for bank interest bank deducts under section 194 A ... But what they deduct is finally my own tax paid ( do you agree )....this is called TDS and builds up to my tax credit for this year 2013 14 (Previous year .....if say i has sold a property more than 50 lakhs , then the buyer is supoosed to deduct 1 % under section 194 IA and this amount would then add to to my tax credit i.e i could then takle the credit of taxes deducted against such property sale ! Say i deposit advance tax for previous year 2013 14 , you will again agree that this is adding to my tax credit for the year 2013 14 .....say after the year is complete , i figure out that the tax due on my total income is 100 Rs and my total TDS credit available against salary /NOn salary / property sale TDS is 90 rs ..so i further pay income tax as self assessment tax 10 Rs and build further my tax credit so that my total tax credit now on account pof TDS credit and my paid income taxes (self assessment /advance ) is 100 rs i,e exactly equal to my tax liability on my total income ! I guess you have understoodf everything ---in the tut we cover some further things like what is tax credit mismatch etc in further depth and have a lot of fun ...hope you enjkoy seeing it as much i enjoyed making it ! Cheers , Peace , Amlan Everything i lifted i pen , it was to educate !
Posted on: Tue, 23 Dec 2014 15:26:50 +0000
Trending Topics
Recently Viewed Topics
© 2015