Assistant Manager Tax

If the current assessment year is 2015-16, which starts from I April 2015 and ends on 31 March 2016. To this assessment year financial year is 2014-15, starting from I April 2014 and ends on 31 March 2015. You will be calculating income tax for financial year in the assessment year.

Tax assessment and determination should be easy to understand by an average taxpayer.

An assessment year is the period that starts from 1 April and ends on 31 march. It is the year immediately succeeding the financial year wherein the income of the previous financial year is assessed. Government use assessment year for calculating tax on the previous year.

Income tax is an annual tax charged on income of a person by the government. It is charged for the corresponding assessment year at the rates laid down by the Finance Act for the assessment year in respect of the previous year.

Tax exemptions must only be for specific purposes (such as to encourage investment) and for a limited period.

Collection of taxes should reinforce their inevitability and regularity.

Taxation principles are the basic concepts by which a government is meant to be guided in designing and implementing an equitable taxation regime.

Capital gains means the profit earned from the sale of an asset. When the Capital Asset is being sold or transferred, the profit or gains arising out of it or you can term that as the difference between the actual price at which the asset was acquired and the price at which it is sold or transferred.

Taxes should equally burden all individuals or entities in similar economic circumstances.

Taxes should not favor any one group or sector over another and should not be designed to interfere-with or influence individual decisions making.

The excess tax paid by an individual than the actual owed is returned by the government which is known as tax refund. After taking into consideration income tax, with holdings, tax deductions or credits and other factors, you file income tax for the year, after that you will receive a tax refund.

Tax collection efforts should not cost an inordinately high percentage of tax revenues.

Tax revenue from a specific source should be dedicated to a specific purpose only when there is a direct cost and benefit link between the tax source and the expenditure, such as use of motor fuel tax for road maintenance.

Taxes should be enforced in a manner that facilitates voluntary compliance to the maximum extent possible.

Taxes should be coordinated to ensure tax neutrality and overall objectives of good governance.

Taxes should be just enough to generate revenue required for provision of essential public services.

Taxes should be spread over as wide as possible section of the population or sectors of economy, to minimize the individual tax burden.

These include:

Adequacy

Broad Basing

Compatibility

Convenience

Earmarking

Efficiency

Equity

Neutrality

Predictability

Restricted exemptions

Simplicity

Infrastructure Cess tax regime is applicable to all the goods entering the province through sea or air. A Cess @ 0.85% (@0.125% of Gold only) is levied on the C and F value of goods as determine by the customs department.

The aim of the "Taxation papers" is twofold:

☛ To facilitate the spreading of the analysis of the Commission's Taxation and Customs Union.

☛ To contribute to the debate on taxation in the European Union.