what is income tax? who and all are supposed to pay? what are the main criteria for this?



what is income tax? who and all are supposed to pay? what are the main criteria for this?
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4 Replies to “what is income tax? who and all are supposed to pay? what are the main criteria for this?”

  1. So shall you’ll make money, so shall you’ll be taxed. Everybody who’s got a dollar to they’re name has to pay this. It’s the Government’s main source of income. If you think income tax is bad try asking a rich person about capital gains tax.



  2. what is income tax?

    Income Tax is a tax charged by the Govt. on the money you earn.

    who and all are supposed to pay ?

    The Govt. have fixed some amount as tax free. Over and above that amount, the tax has to be paid. For example for this Financial Year 2007-08, the tax free and tax payable is given below.

    7. Tax slabs for F.Y: 2007-08
    •The basic tax exemptions for this running financial year 07-08 are as follows:

    Rs.1,10,000 for HUF or Male <65 years
    Rs.1,45,000 for Femala <65 years
    Rs.1,95,000 for Seniour Citizens >65 years (Male or Female)

    Tax Slabs for FY: 07-08 are as follows:

    Male/HUF

    00% Up to 1.1 lakhs
    10% Tax between 1.1 lakhs to 1.5 lakhs
    20% Tax between 1.5 lakhs to 2.5 Lakhs
    30% tax after 2.5 lakhs

    Female:

    00% Up to 1.45 lakhs
    10% Tax between 1.45 lakhs to 1.5 lakhs
    20% Tax between 1.5 lakhs to 2.5 Lakhs
    30% tax after 2.5 lakhs

    Seniour Citizens:

    00% Up to 1.95 lakhs
    20% Tax between 1.95 lakhs to 2.5 Lakhs
    30% tax after 2.5 lakhs

    Tax Savings: (under section 80C)

    All of the above can invest up to 1 lakh in tax deduction investments like LIC premium, PPF, NSC, 5 years Bank Deposit & ELSS etc. These are called 80C deductions. More clearly written in the below website.
    http://www.rediff.com/getahead/2005/dec/

    If you invest in the above said tax savings 80c investments, your income will be directly reduced up to a max. investment of Rs.1 lakh.

    what are the main criteria for this?

    The Govt. wants to make some money from those who are earning income.


  3. Person defined under section 2(31) earning an income above a specified limit should pay tax. A resident earning income in India & abroad and a Non-resident earning income in India above the specified limit should pay tax.





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