{"id":19107,"date":"2022-10-28T10:06:18","date_gmt":"2022-10-28T10:06:18","guid":{"rendered":"http:\/\/34.100.199.175\/?page_id=19107"},"modified":"2023-08-28T06:02:18","modified_gmt":"2023-08-28T06:02:18","slug":"tax","status":"publish","type":"page","link":"https:\/\/mybillbook.in\/s\/tax\/","title":{"rendered":"Tax"},"content":{"rendered":"<p>[vc_row][vc_column][vc_column_text]<\/p>\n<p class=\"zox-post-title left entry-title\" style=\"text-align: center;\"><span style=\"font-weight: 400;\"><div class='ai-viewports ai-viewport-1 ai-insert-3-34793361' style='margin: 8px 0; clear: both;' data-insertion-position='prepend' data-selector='.ai-insert-3-34793361' data-insertion-no-dbg data-code='PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTMnIHN0eWxlPSdtYXJnaW46IDhweCAwOyBjbGVhcjogYm90aDsnPgo8YSBocmVmPSJodHRwczovL215YmlsbGJvb2suaW4vY3JlYXRlLWFjY291bnQvIj4gPGltZyBzcmM9Imh0dHA6Ly9teWJpbGxib29rLmluL3Mvd3AtY29udGVudC91cGxvYWRzLzIwMjMvMDQvdG9wLW5ldy1iYW5uZXIuanBnIiBhbHQ9Imdyb3cgYnVzaW5lc3MiPiA8L2E+CjwvZGl2Pgo=' data-block='3'><\/div>\n<script>\n  ai_run_868228656429 = function(){ai_insert_viewport_code ('ai-insert-3-34793361');};\n  if (document.readyState === 'complete' || (document.readyState !== 'loading' && !document.documentElement.doScroll)) ai_run_868228656429 (); else document.addEventListener ('DOMContentLoaded', ai_run_868228656429);\n<\/script>\n<br \/>\n <\/span><\/p>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"TAX\"><\/span>TAX<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>[\/vc_column_text][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Tax\"><\/span><span style=\"font-weight: 400;\">What is Tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tax is a mandatory fee imposed by the government on individuals to collect revenue.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_Best_Way_to_do_Business\"><\/span>What is the Best Way to do Business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Best way to do business required the three basic things :<\/p>\n<ol>\n<li>A comprehensive analysis of your product<\/li>\n<li>A deep understanding of your customer<\/li>\n<li>A passionate determination to succeed.<\/li>\n<\/ol>\n<p>Here are some fundamental requirements for starting a business or becoming a successful businessman.<\/p>\n<ul>\n<li>Adequate knowledge and skills in a specific sector<\/li>\n<li>Maintain a keen interest in and enthusiasm for your project<\/li>\n<li>Sufficient financial resources are required<\/li>\n<li>Determination to overcome all obstacles till the business succeeds<\/li>\n<li>Appropriate licencing from government agencies to establish legitimacy<\/li>\n<\/ul>\n<p>hen matched with an entrepreneurial mindset, the necessities mentioned above can assist you in starting your own business.[\/vc_column_text][vc_column_text]<div class='ai-viewports ai-viewport-1 ai-insert-1-22924637' style='margin: 8px 0px 8px auto; text-align: right; display: block; clear: both; padding-left: 300px;' data-insertion-position='prepend' data-selector='.ai-insert-1-22924637' data-insertion-no-dbg data-code='PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTEnIHN0eWxlPSdtYXJnaW46IDhweCAwcHggOHB4IGF1dG87IHRleHQtYWxpZ246IHJpZ2h0OyBkaXNwbGF5OiBibG9jazsgY2xlYXI6IGJvdGg7IHBhZGRpbmctbGVmdDogMzAwcHg7Jz4KPGEgaHJlZj0iaHR0cHM6Ly9teWJpbGxib29rLmluL2NyZWF0ZS1hY2NvdW50LyI+IDxpbWcgc3JjPSJodHRwOi8vbXliaWxsYm9vay5pbi9zL3dwLWNvbnRlbnQvdXBsb2Fkcy8yMDIzLzA2L2J1dHRvbi0xNC1kYXlzLXRyaWFsLnBuZyIgYWx0PSJkb3dubG9hZCBhcHAiPiA8L2E+Cgo8L2Rpdj4K' data-block='1'><\/div>\n<script>\n  ai_run_496874830142 = function(){ai_insert_viewport_code ('ai-insert-1-22924637');};\n  if (document.readyState === 'complete' || (document.readyState !== 'loading' && !document.documentElement.doScroll)) ai_run_496874830142 (); else document.addEventListener ('DOMContentLoaded', ai_run_496874830142);\n<\/script>\n<br \/>\n[\/vc_column_text][vc_column_text]<\/p>\n<h3><span style=\"font-weight: 400;\">Significance of Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">India has a well-structured tax system with a three-tier federal structure. First, the Government collects money from people in the form of tax. Then, it uses it for implementing projects that benefit the country.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The constitution of India allocates the Government the power to collect taxes, and the tax structure includes the central Government, state governments, and local municipal bodies.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Taxes_in_India\"><\/span><span style=\"font-weight: 400;\">Types of Taxes in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Taxes in India are Central and State Govt taxes with two types of taxes:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Direct tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Indirect tax<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Direct_Tax\"><\/span><span style=\"font-weight: 400;\">Direct Tax<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Direct taxes are taxes on your earnings in India.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Applicability of the Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An earning party, whether an individual, HUF or a company, is responsible for depositing the direct tax liability.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">When to Pay Direct Tax?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This tax is payable during each assessment year (1st April to 31st March). You cannot transfer these taxes to others.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Threshold Limit<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If your annual income exceeds the minimum exemption limit, you must make income tax payments. However, you can get tax benefits under various sections of the Act. Before discussing tax benefits, you need to understand the income tax slab.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Sub-categories of Direct Taxes<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Direct taxes add up to 50% of the Government\u2019s revenue in India. Here are the direct taxes applicable in India:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Income Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Income tax is the tax imposed on the annual income or the profits directly paid to the Government. The f<\/span><span style=\"font-weight: 400;\">eatures of income tax<\/span><span style=\"font-weight: 400;\"> apply to any income of an Individual or HUF except capital gains and profits from business and profession.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Everyone who earns any income is liable to pay income tax. Apart from individuals, legal entities are also responsible for paying taxes.\u00a0<\/span><\/p>\n<p><b>Calculation:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">You can calculate income tax according to the applicable slab rates for the Assessment Year.<\/span><\/p>\n<p><b>Limit:<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rs.2.5 lakh per annum for individuals below 60 years<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rs.3 lakh for individuals of age between 60 and 80<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rs.5 lakh for individuals above 80\u00a0<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400;\">Capital Gains Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Capital gains tax is a tax on selling a property or money you receive through any investment, either short-term or long-term capital gains.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Securities Transaction Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">STT is a tax on the stock market and securities trading, the share&#8217;s price and securities traded on the ISE (Indian Stock Exchange).<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Prerequisite Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These are taxes on the benefits and perks a company provides its employees. The purpose of the benefits and perks is to be defined.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Corporate tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The income tax paid by any company is known as corporate tax, a tax on the different revenue slabs. The sub-categories of these taxes are as follows:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dividend distribution tax ( DDT)<\/b><span style=\"font-weight: 400;\">: This tax is on the company&#8217;s dividends to its investors. It applies to the gross income an investor receives from the investment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fringe benefits tax (FBT)<\/b><span style=\"font-weight: 400;\">: a tax imposed on the fringe benefits that an employee receives from the company, including accommodation, transportation, leave travel allowance, entertainment, retirement fund contribution by the employee, employee welfare, Employee Stock Ownership Plan (ESOP), etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Minimum Alternative Tax (MAT):<\/b><span style=\"font-weight: 400;\"> Companies pay the IT Department through MAT, and Section 115JA of the IT Act governs MAT. Companies exempt from MAT are those in the power and infrastructure sectors.<\/span><\/li>\n<\/ol>\n<p>[\/vc_column_text][vc_column_text]<div class='ai-viewports ai-viewport-1 ai-insert-1-25581690' style='margin: 8px 0px 8px auto; text-align: right; display: block; clear: both; padding-left: 300px;' data-insertion-position='prepend' data-selector='.ai-insert-1-25581690' data-insertion-no-dbg data-code='PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTEnIHN0eWxlPSdtYXJnaW46IDhweCAwcHggOHB4IGF1dG87IHRleHQtYWxpZ246IHJpZ2h0OyBkaXNwbGF5OiBibG9jazsgY2xlYXI6IGJvdGg7IHBhZGRpbmctbGVmdDogMzAwcHg7Jz4KPGEgaHJlZj0iaHR0cHM6Ly9teWJpbGxib29rLmluL2NyZWF0ZS1hY2NvdW50LyI+IDxpbWcgc3JjPSJodHRwOi8vbXliaWxsYm9vay5pbi9zL3dwLWNvbnRlbnQvdXBsb2Fkcy8yMDIzLzA2L2J1dHRvbi0xNC1kYXlzLXRyaWFsLnBuZyIgYWx0PSJkb3dubG9hZCBhcHAiPiA8L2E+Cgo8L2Rpdj4K' data-block='1'><\/div>\n<script>\n  ai_run_743809797220 = function(){ai_insert_viewport_code ('ai-insert-1-25581690');};\n  if (document.readyState === 'complete' || (document.readyState !== 'loading' && !document.documentElement.doScroll)) ai_run_743809797220 (); else document.addEventListener ('DOMContentLoaded', ai_run_743809797220);\n<\/script>\n<br \/>\n[\/vc_column_text][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Indirect_Tax\"><\/span><span style=\"font-weight: 400;\">Indirect Tax<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Indirect taxes are taxes on expenses collected by corporations and service or product-providing businesses. <\/span><span style=\"font-weight: 400;\">Taxes on services and products are called indirect taxes. It is a tax added to the price of the products and services that increases the cost of the product or service.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Applicability of Indirect Tax<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The seller of the service or product collects indirect taxes. However, the Government currently imposes only one indirect tax, GST or the Goods and Services Tax.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_Indirect_Taxes\"><\/span><span style=\"font-weight: 400;\">Other Indirect Taxes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Other taxes are small revenue generators. They are of sub-categories:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Property tax,<\/b><span style=\"font-weight: 400;\"> also called<\/span><b> Real Estate Tax or Municipal Tax<\/b><span style=\"font-weight: 400;\">, is the tax that residential and commercial property owners pay to maintain essential civil services. Property tax is by the municipal bodies based in each city.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Professional tax<\/b><span style=\"font-weight: 400;\">, This employment tax is on those practising a profession or earning a salaried income, such as lawyers, chartered accountants, doctors, etc. This tax differs from state to state\u2014only some states levy professional tax.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Entertainment tax<\/b><span style=\"font-weight: 400;\"> is a tax on television series, movies, and exhibitions tax. The tax is on the gross collections from the earnings and is also called the amusement tax.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Registration fees, stamp duty and transfer tax supplement property tax<\/b><span style=\"font-weight: 400;\"> at the time of a property purchase.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The Education cess<\/b><span style=\"font-weight: 400;\"> funds the educational programs launched and maintained by the Government of India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Entry tax<\/b><span style=\"font-weight: 400;\"> is a tax on the products or goods that enter a state through e-commerce establishments. It is applicable in Delhi, Assam, Gujarat, and Madhya Pradesh.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Road and toll taxes <\/b><span style=\"font-weight: 400;\">are for maintaining roads and toll infrastructure.<\/span><\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_column_text]<div class='ai-viewports ai-viewport-1 ai-insert-1-94366203' style='margin: 8px 0px 8px auto; text-align: right; display: block; clear: both; padding-left: 300px;' data-insertion-position='prepend' data-selector='.ai-insert-1-94366203' data-insertion-no-dbg data-code='PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTEnIHN0eWxlPSdtYXJnaW46IDhweCAwcHggOHB4IGF1dG87IHRleHQtYWxpZ246IHJpZ2h0OyBkaXNwbGF5OiBibG9jazsgY2xlYXI6IGJvdGg7IHBhZGRpbmctbGVmdDogMzAwcHg7Jz4KPGEgaHJlZj0iaHR0cHM6Ly9teWJpbGxib29rLmluL2NyZWF0ZS1hY2NvdW50LyI+IDxpbWcgc3JjPSJodHRwOi8vbXliaWxsYm9vay5pbi9zL3dwLWNvbnRlbnQvdXBsb2Fkcy8yMDIzLzA2L2J1dHRvbi0xNC1kYXlzLXRyaWFsLnBuZyIgYWx0PSJkb3dubG9hZCBhcHAiPiA8L2E+Cgo8L2Rpdj4K' data-block='1'><\/div>\n<script>\n  ai_run_250863961641 = function(){ai_insert_viewport_code ('ai-insert-1-94366203');};\n  if (document.readyState === 'complete' || (document.readyState !== 'loading' && !document.documentElement.doScroll)) ai_run_250863961641 (); else document.addEventListener ('DOMContentLoaded', ai_run_250863961641);\n<\/script>\n<br \/>\n[\/vc_column_text][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Goods_and_Services_Tax\"><\/span><span style=\"font-weight: 400;\">What is Goods and Services Tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Goods and Services Tax or GST has consolidated India&#8217;s complex web of indirect taxes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Taxation in India has three layers of levies \u2013 Centre, State and Local Authority or Municipalities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the pre-GST era, these were the indirect taxes on the goods and services in India:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Service Tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Excise Duty<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Entertainment Tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Value Added Tax (VAT, State)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Octroi<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Luxury Tax (State)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchase Tax<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Entry Tax (State)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Central Sales Tax (collected by State)<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">These taxes posed many disadvantages and conflicts for suppliers, manufacturers, and government bodies.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">The Present State of the GST<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">GST has simplified indirect taxation for goods and services in India. You only need to consider the following taxes now Instead of five or six different taxes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Central Goods &amp; Services Tax (CGST)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">State Goods &amp; Services Tax (SGST)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integrated Goods &amp; Services Tax (IGST)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">CGST and SGST apply for sale within the state. IGST applies to the goods you sell between states.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Disadvantages of Indirect Taxes Before GST<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">GST removes the complexity and hurdles towards participation in national business markets. GST made goods and services cheaper for individuals and ended consumers while making taxation transparent and easy for sellers.<\/span>[\/vc_column_text][vc_column_text]<div class='ai-viewports ai-viewport-1 ai-insert-1-18054706' style='margin: 8px 0px 8px auto; text-align: right; display: block; clear: both; padding-left: 300px;' data-insertion-position='prepend' data-selector='.ai-insert-1-18054706' data-insertion-no-dbg data-code='PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTEnIHN0eWxlPSdtYXJnaW46IDhweCAwcHggOHB4IGF1dG87IHRleHQtYWxpZ246IHJpZ2h0OyBkaXNwbGF5OiBibG9jazsgY2xlYXI6IGJvdGg7IHBhZGRpbmctbGVmdDogMzAwcHg7Jz4KPGEgaHJlZj0iaHR0cHM6Ly9teWJpbGxib29rLmluL2NyZWF0ZS1hY2NvdW50LyI+IDxpbWcgc3JjPSJodHRwOi8vbXliaWxsYm9vay5pbi9zL3dwLWNvbnRlbnQvdXBsb2Fkcy8yMDIzLzA2L2J1dHRvbi0xNC1kYXlzLXRyaWFsLnBuZyIgYWx0PSJkb3dubG9hZCBhcHAiPiA8L2E+Cgo8L2Rpdj4K' data-block='1'><\/div>\n<script>\n  ai_run_644100434209 = function(){ai_insert_viewport_code ('ai-insert-1-18054706');};\n  if (document.readyState === 'complete' || (document.readyState !== 'loading' && !document.documentElement.doScroll)) ai_run_644100434209 (); else document.addEventListener ('DOMContentLoaded', ai_run_644100434209);\n<\/script>\n<br \/>\n[\/vc_column_text][vc_column_text]<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages_of_Taxes\"><\/span><span style=\"font-weight: 400;\">Advantages of Taxes<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Anyone earning a taxable salary must file their income tax returns, even if their tax liability is zero after deducting. Filing them and paying your taxes can benefit you in the following ways:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Approval of loans:<\/b><span style=\"font-weight: 400;\"> When applying for a loan, especially home and vehicle loans, banks might request a copy of your income tax returns from the last 2 to 3 years. Having ITR can even help you get a higher loan amount or get your loan application reconsidered if the officials reject it. Banks use ITR to analyse your income and deduce if you can repay the loan. ITR provide a clear picture of payment and taxes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Visa applications:<\/b><span style=\"font-weight: 400;\"> Many foreign consulates require you to furnish your income tax returns from the last years during the visa interview. It is prudent to carry your ITR receipts, even when you travel abroad for leisure or business. They will come in handy in the case of any emergency when you have to seek the help of a consulate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Individuals of self-employment:<\/b><span style=\"font-weight: 400;\"> Freelancers, consultants, entrepreneurs, and firms&#8217; partners are not eligible for Form 16. You must furnish your ITR receipts as proof of income if your annual income exceeds the basic exemption limit. It is proof of taxes paid and is helpful during any financial or business transaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tenders for the Government<\/b><span style=\"font-weight: 400;\">: <\/span><span style=\"font-weight: 400;\">When applying for government tenders, you must furnish your ITR receipts. Although each government department has its rules, you should keep them handy to ensure you have enough money to meet your obligations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Carrying forward of losses<\/b><span style=\"font-weight: 400;\">: You can carry forward short-term or long-term capital losses to adjust against the capital gains made in the subsequent years. For example, the long-term capital loss of one year can be carried forward for up to 8 consecutive years that immediately succeed the year in which the loss had occurred. However, you can only adjust a long-term capital loss against a short-term capital gain of that year. However, you can adjust a short-term capital gain against short-term and long-term gains. However, you can avail of this only if you file your income tax returns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Claiming of tax refunds<\/b><span style=\"font-weight: 400;\">: You can claim any refunds from the IT Department only if you file your income tax returns. <\/span><span style=\"font-weight: 400;\">You could claim refunds from different savings instruments if you file your ITRs, even when your income is below the tax exemption bracket.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Coverage of life insurance:<\/b> <span style=\"font-weight: 400;\">\u00a0You can avail of \u201cLife cover or a Term Policy\u201d with a sum insured from Rs.50 lakh to Rs.1 crore. You can do so by furnishing income tax returns that help verify annual income.\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Claiming of compensations<\/b><span style=\"font-weight: 400;\">: You must provide ITR receipts when claiming compensation to establish your income <\/span><span style=\"font-weight: 400;\">when in a motor vehicle accident resulting in disability or accidental death.<\/span>[\/vc_column_text][vc_column_text]<div class='ai-viewports ai-viewport-1 ai-insert-1-78374927' style='margin: 8px 0px 8px auto; text-align: right; display: block; clear: both; padding-left: 300px;' data-insertion-position='prepend' data-selector='.ai-insert-1-78374927' data-insertion-no-dbg data-code='PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTEnIHN0eWxlPSdtYXJnaW46IDhweCAwcHggOHB4IGF1dG87IHRleHQtYWxpZ246IHJpZ2h0OyBkaXNwbGF5OiBibG9jazsgY2xlYXI6IGJvdGg7IHBhZGRpbmctbGVmdDogMzAwcHg7Jz4KPGEgaHJlZj0iaHR0cHM6Ly9teWJpbGxib29rLmluL2NyZWF0ZS1hY2NvdW50LyI+IDxpbWcgc3JjPSJodHRwOi8vbXliaWxsYm9vay5pbi9zL3dwLWNvbnRlbnQvdXBsb2Fkcy8yMDIzLzA2L2J1dHRvbi0xNC1kYXlzLXRyaWFsLnBuZyIgYWx0PSJkb3dubG9hZCBhcHAiPiA8L2E+Cgo8L2Rpdj4K' data-block='1'><\/div>\n<script>\n  ai_run_910945584345 = function(){ai_insert_viewport_code ('ai-insert-1-78374927');};\n  if (document.readyState === 'complete' || (document.readyState !== 'loading' && !document.documentElement.doScroll)) ai_run_910945584345 (); else document.addEventListener ('DOMContentLoaded', ai_run_910945584345);\n<\/script>\n<br \/>\n[\/vc_column_text][vc_empty_space height=&#8221;10px&#8221;][vc_column_text]\t\t<div class=\"wp-faq-schema-wrap\">\n\t\t\t\t\t\t\t<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<h3>What is tax?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>A tax is a mandatory fee levied by the government on individuals for the government to collect revenue.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What are the benefits of tax payments?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Tax payments can benefit you on multiple levels, including the nation's development, the betterment of infrastructure, the upliftment of society, and even welfare activities for the country.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What are some tax-saving investments?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>You can use tax-saving instruments like the Public Provident fund (PPF), National Pension Scheme, etc. Other popular taxes saving investments are Life insurance premium\/term insurance premiums, Equity Linked Savings Schemes (ELSS), Tax saving Fixed Deposits, Employee Provident Funds (EPF), etc.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>How do I know how much income tax I should pay?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>You can visit the website of the Income Tax Department, www.incometaxindia.gov.in., to learn more about your income tax liability and the various tax slabs.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>How can you file your income tax returns?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>You can file your income tax returns in four different ways. They are the Electronic transmission of data under the electronic verification code and afterwards submission of verification in Return Form ITR-V, Paper form and Electronic returns with a digital signature.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What should you consider before filling out the ITR form or challan?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>You should mention these details in the challan:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:list --><\/p>\n<ol>\n<li>Amount of tax<\/li>\n<li>\u00a0Mode of payment of tax<\/li>\n<li>\u00a0Head of payment<\/li>\n<li>\u00a0Assessment year<\/li>\n<li>\u00a0PAN<\/li>\n<li>\u00a0Type of payment<\/li>\n<\/ol>\n<p><!-- \/wp:list --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t[\/vc_column_text][\/vc_column][\/vc_row][vc_section][vc_row][vc_column][vc_column_text]<\/p>\n<h3 style=\"text-align: center;\">Know more about Business Ideas in India<\/h3>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<ul>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/\">Business Ideas In India<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/top-business-ideas-in-delhi\/\">Top 10 Business Ideas in Delhi<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/small-business-ideas-in-tamil-nadu\/\">Top 10 Small Business Ideas In Tamil Nadu<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/small-business-ideas-in-kerala\/\">Small Business Ideas in Kerala<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/25-best-new-business-ideas-in-bihar\/\">New Business Ideas in Bihar<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/business-ideas-in-odisha\/\">Small Business Ideas in Odisha<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/10-small-and-new-business-ideas-in-mumbai\/\">Business Ideas in Mumbai<\/a><\/li>\n<li><a href=\"https:\/\/mybillbook.in\/s\/business-ideas-in-india\/wholesale-business-ideas\/\">Wholesale Business Ideas<\/a><\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][\/vc_section]<\/p>\n","protected":false},"excerpt":{"rendered":"[vc_row][vc_column][vc_column_text] [\/vc_column_text][vc_column_text] TAX [\/vc_column_text][vc_column_text] What is Tax? Tax is a mandatory fee imposed by the government on individuals to collect revenue.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text] What is the Best Way to do Business? The Best way to do business required the three basic things [...]","protected":false},"author":9,"featured_media":19112,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.5.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Tax? Types of taxes, what is GST &amp; Advantages of Tax<\/title>\n<meta name=\"description\" content=\"Learn about tax in India. Read about the significance of tax, types of taxes in India, what is GST, advantages of tax and related FAQs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mybillbook.in\/s\/tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Tax? Types of taxes, what is GST &amp; Advantages of Tax\" \/>\n<meta property=\"og:description\" content=\"Learn about tax in India. 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