1 / 6

Taxation Homework Help

Taxation is the process by which governments collect money from individuals and businesses to fund public services like education, healthcare, and infrastructure. There are different types of taxes, such as income tax, sales tax, and property tax. Income tax is paid based on earnings, while sales tax is added to goods and services purchased. Property tax is based on the value of owned property.https://www.thetutorshelp.com/taxation-homework-help.php

jameswilliam7620
Télécharger la présentation

Taxation Homework Help

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Identify the Taxpayer and Tax Year • Is it an individual, company, or partnership? • Which tax year or financial year is under consideration? • Classify the Income • Employment income (salary, wages, benefits) • Business/professional income • Capital gains • Rental income • Other income (dividends, interest, etc.) Level 5,121 Castlereagh Street Sydney, NSW 2000 +61-280062221 +44-1618189521 info@thetutorshelp.com

  2. Calculate Gross and Taxable Income • Add all sources of income • Subtract deductions and exemptions • Determine Tax Liability • Use the applicable tax slabs/rates • Apply credits and rebates (if any) • Add Other Taxes • E.g., VAT, sales tax, surcharge, cess (if applicable)

  3. VAT (Value Added Tax) • What it is: A type of indirect tax levied at each stage of the production or distribution process. • Who pays it: Ultimately borne by the final consumer, though collected at various stages. • How it works: Businesses collect VAT on sales and pay VAT on purchases. The difference (called "input VAT" and "output VAT") is remitted to the government. • Example: If a manufacturer pays ₹100 VAT on raw materials and charges ₹150 VAT on selling the finished product, they remit ₹50 (₹150 - ₹100) to the government.

  4. Sales Tax • What it is: A tax on the sale of goods, usually at the point of sale to the final consumer. • Difference from VAT: Sales tax is collected only once (at the point of final sale), while VAT is collected at each stage. • Current relevance in UK: Replaced by GST (Goods and Services Tax) in 2017.

  5. Surcharge • What it is: An additional charge on the base tax amount. • Who pays it: Generally applicable to individuals or entities with income above a certain threshold. • Example: If income tax is ₹1,00,000 and surcharge is 10%, then surcharge = ₹10,000 → Total tax payable = ₹1,10,000. • 4. Cess • What it is: A tax levied for a specific purpose, over and above the basic tax. • Common examples: Education Cess, Health and Education Cess. • Example: If your total tax (including surcharge) is ₹1,10,000 and the cess is 4%, then cess = ₹4,400 → Total payable = ₹1,14,400. • Note: Unlike normal taxes, cess is meant for specific funds (like health or education initiatives).

  6. Summary Table: https://www.thetutorshelp.com/taxation-homework-help.php

More Related