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• Capital Gains: Such incomes realized from assets sold constitute capital gains, either short-term or long-term depending on how long an asset had been held.
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• Capital Gains: Such incomes realized from assets sold constitute capital gains, either short-term or long-term depending on how long an asset had been held. Thus, the tax rates differ with the nature of capital gain.
• Rental Income of House Property: All the income accreted from the property let out also are taxable except for the expenditure allowed, which includes interest fo
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The rules of income tax group income into different classes and decide under what principles different types can be taxed in respect of their source and their nature. Of very common types of
• Income taxable, the following are mentioned: Salaries and Wages: This is generally the chief source of income for most people. Salaries are thus normally taxed through TDS as employers pay
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So, for each slab of tax, it is an additive combination: that slab imposes tax on only the part of income falling within the bracket of that slab. Most tax systems also feature provisions for deduction and exemption whereby tax liability reduces taxable income through either actual reduction or through exemptions.
• Basic exemption limit: This is the most basic amount that appears to be of income, say INR 2.5 lakhs. Th
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2. Tax structure and tax slabs
Generally, income tax systems are progressive, meaning a high income earner has to pay a higher rate. Tax systems vary from country to country; however, often tax systems contain numerous tax slabs or brackets in them. In most of the countries, the individual is categorized under a specific tax bracket according to his annual income. For each slab, the rate is different.
Example: Individual ta
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Income tax is a direct tax levy carried out by the government following the income of the people and other affected groups. It is one of the most important revenues of any state as it finds use in infrastructure and public services, among other government activities. To taxpayers, knowledge of the tax laws and policies governing tax income is important in compliance observation, maximization of tax savings, and obv
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