accoutant- tasneem pakawala

8/19/2019 Accoutant- Tasneem Pakawala

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Title of the Project “Tax Assistant”

Class

B.Com final year, Sem- VIth

Project report submitted to

Royal Institute of Management and

Advanced Studies

Signature (Guide):…………… Signature (Student):…………

Name of the Guide: Prof Amit Sharma Name of Student: Sophia Nicholas

Student! Ro"" No: 1#1#$0%$

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Declaration of the Student

I Sophia Nicholas So Sh*homa! +ertif, that the ro.e+t reort entit"ed

/Tax Asistant reared , me i! m, er!ona" and authenti+ or3 under the

guidan+e of 'rof 4mit Sharma

Date : Signature :

Place :Ratlam Name : Sophia Nicholas

Class : B.Com VI th Sem

Roll No.:11!"#!

$o%.No.: #1'!&'((

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Guide Declaration

I certify that the )ro*ect re)ort entitle+ Tax Assitant has %een

)re)are+ %y So)hia Nicholas Class B.Com. VI Sem un+er my su)erision an+

%ears the result of her original /or0.

Date : Signature :

Place : Name : Prof. Amit Sharma

Designation : sst.Professor2 3.4.D.

College: Royal College,

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Acknowledgement

I Sophia Nicholas Stu+ent of B.Com final year great fully ac0no/le+ge

the alua%le contri%ution of arious )eo)le relate+ to my )ro*ect re)ort.

I my +ee)est regar+ 2 gratitu+e to our 34D an+ gui+e Prof Amit

Sharma. 3earty 2 sincere than0s to Professor, /ho is hel)ing an+ gui+ing me.

5he Su))ort of entire staff of the institute /here I hae /or0e+ has

hel)e+ me a lot in gro/ing in reason 2 un+erstan+ing. So, I shall li0e to )ay

my s)ecial than0s to the staff mem%er of S/aye+ Institution.

Sophia Nicholas

B.Com VIth Sem

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Index

S.No

.

Contents Page No.

1 Pro*ect 5itle 6 5a7 ssistant '

( 8ualification re9uire+

4%*ects of 5a7 ssistant 1"

! ;in+s of 5a7 1

< =7isting )ro%lems in 5a7 ssistant (

' Suggestion of a%oe )ro%lem (!

& >uture challenges an+ their solution (' =7)erience of the Stu+ent "

# ?ui+ance of the ?ui+e 1

1" Result @ I sem to V sem A 1

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Project Title – Tax Assistant

*he ord ta i! +on+ei7ed a! a 7er, negati7e ord in India 'eo"e indeed imagine

"i3e the, are in the mo7ie 8agaan here the, are !"a,ed and for+ed to a, ta

9oe7er it i! our re!on!ii"it, to a, ta a! the +iti;en! of our +ountr, *a that

the +ommon man a,! to the go7ernment i! uti"i;ed for de7e"omenta" a+ti7itie! in

the +ountr, and for ro7iding fa+i"itie! to the need, *he *a mone,! are uti"i;ed

for the arm, and hen+e the +ountr,! defen!e deend! on the ta ,ou a, No

!udden", it !eem! atrioti+ to a, tae!

No the ru"e! and "a! regarding tae! 7arie! ith e7er, +ountr, and !o I7e made

thi! re7o"7e a "itt"e it around the Indian !,!tem ! ith re!e+t to tae! in thi! o!t 9ere it goe! ?

1. What are the different types of taxes?

*ae! are differentiated a! @ire+t and Indire+t tae! 4n eam"e for dire+t ta in

India i! In+ome ta (*a to e aid on in+ome) and Aea"th *a (*a on Aea"th) It

i! +a""ed dire+t ta a! the tae! are dire+t", "e7ied on the indi7idua" Ae need to a,

tae! on the in+ome e earn in the arti+u"ar 4!!e!!ment ,ear


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+on!umer and hen+e e a, ta indire+t", *he ta i"" e +o""e+ted , the !e""er of

the rodu+t and remitted to the go7ernment Same in +a!e of Ser7i+e ta ut !er7i+e

ta i! "e7ied on the !er7i+e

2. Is payment of Tax compulsory?

Sometime! e ha7e !u+h a!i+ fundamenta" Cue!tion! "i3e the!e De! a,ment of

ta i! +omu"!or, a! the Go7ernment i! emoered from the +on!titution to "e7,

tae! 4! eing orn a! +iti;en! of India e are re!on!i"e to a, tae! to the

go7ernment No ,ou ma, !a, that ,ou ha7ent !igned the +on!titution !a,ing that

,ou ou"d a, tae! Eut our forefather! ha7e !igned it and on our eha"f 9en+e

e are ound to a, tae!

3. an I escape tax?

*a +an e a7oided ,e! ut there are "ega" and i""ega" mean! to do it *a "anning

i! ro+e!! of "anning the in+ome! !o that the ta a,ment ou"d e at a minimum

9ere ,ou are .u!t redu+ing the ta "iai"it, ut u!ing the "ooho"e! in the 8a

9oe7er *a e7a!ion in+"ude! +ertain i""ega" mean! , hi+h ,ou do not di!+"o!e a arti+u"ar in+ome to a7oid ta on !u+h in+ome It i! ne+e!!ar, to under!tand the "ine

eteen "anning and e7a!ion

!. an anyone else except the "o#ernment impose tax?

Fon!titution !a,! that on", Go7ernment +an "e7, tae! 4nd hen+e an, other od,

imo!ing ta ou"d amount to etortion If go7ernment +harge! 100 ta too it

doe!nt amount to etortion De! I 3no the fee"ing thi! i! the "a of taation

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$. What is %lac& money?

E"a+3 mone, *he mone, he"d in Si!! an3 a++ount! , our e"o7ed o"iti+a"

"eader! *hat! a"" mo!t of u! 3no Eut hat ea+t", i! E"a+3 mone, and ho i! it

generatedJ Some Cue!tion! I too had efore I !tarted !tud,ing ta Eut the an!er

a! !im"e E"a+3 mone, i! the mone,! hi+h are not di!+"o!ed to the go7ernment

, an indi7idua" and hen+e not taed So ,ou !e"" ,our aartment and get 2 Frore!

for it if ,ou arent di!+"o!ing it in ,our In+ome ta return and dont a, tae! on it

it i! indeed "a+3 mone, *he 7ariou! !+am! and rie! that are a++umu"ated ,

go7ernment offi+ia"! are i"ed u in =oreign an3 a++ount! and hen+e 3et a! a

!e+ret from a go7ernment K1$56 Ei""ion! i! the e!timated amount of "a+3 mone,

of Indian! in the Si!! an3 a"one *he an3 a++ount ho"der! +an .u!t a, ta on

that and it turn! out to e hite Re7enue if tae! are aid on tho!e ou"d e

aroimate", K $00 Ei""ion!

'. What is the impact if taxes are not paid?

If "et! !a, ,ou ha7e "oad! of une"ained in+ome and ,ou ha7ent aid tae! on it

if the !ame +ome! to the noti+e of the ta offi+ia"! ,ou +an e !e7ere", ena"i;ed or

.ai"ed or oth a!ed on the gra7it, of the !ituation It i! our re!on!ii"it, to a,

tae! and e indeed +an ma3e a differen+e in the e+onom, of the +ountr, ,

re!on!i", a,ing tae!

(. Should you pay Income tax e#en if don)t reside in India?

Re!identia" !tatu! i! a 7er, imortant toi+ under the In+ome *a 4+t 1%61 *he

"a !a,! that ,ou are !uo!ed to a, tae! on the an, in+ome a++rued or ari!e in

India So if ,ou are an 4meri+an and ,ou ha7e a !our+e of In+ome in India remit

tae! to the Indian go7ernment on that arti+u"ar in+ome that ha! een earned in

India

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*. What is T+S?

*@S !tand! for *a @edu+ted at Sour+e In +ertain +a!e! it i! mandated , the "a

that the !er7i+e re+ei7er dedu+t! ta a,a"e on that arti+u"ar i"" and remit! it to

the go7ernment on the !er7i+e ro7ider! eha"f *hi! a"!o or3! a! a +he+3 on the

ta e7a!ion

,. -o can I compute my tax paya%le?

*he in+ome of the Indi7idua" under Sa"ar, Eu!ine!! or 'rofe!!ion Faita" gain!

9ou!e roert, in+ome and other in+ome! !ha"" e +a"+u"ated !earate", and ta

a,a"e !ha"" e +a"+u"ated a!ed on different !"a rate! *he ta "e7, on the ao7e

different !our+e! of in+ome i! uniCue and in7o"7e! a "ot of ana",!i! Se7era" on"ine

ta +a"+u"ation tem"ate! are a7ai"a"e for ,our u!e

1/. What are IT 0eturns?

*he in+ome +omutation and ta a,a"e !ha"" e fi"ed to the go7ernment in form!

+a""ed I*R ? In+ome *a Return! *he!e return! are e7iden+e that the in+ome ha!

een di!+"o!ed and the ta ha! een aid on the !ame *he "a!t date to fi"e In+ometa return! for an indi7idua" i! #1!t u", of e7er, ,ear

*aation ha! e7o"7ed through the !and! of time and no the Indian taation !,!tem

i! among the e!t in the or"d *a i! a huge !u.e+t to !tud, and intere!ting and

ne7er i! it routine *a +on!u"tan+, i! one of the highe!t earning .o! a! there i! a

huge !+oe for ta "anning It i! imortant for u! to under!tand the taation effe+t!

and the ima+t of ,our ta on the !o+iet, ,ou "i7e in

In m, "ine of or3 I ha7e had the oortunit, to !tud, in deth aout taation and it

i! a ne7er ending !u.e+t

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to identif, the 3ind of ta !,!tem that ou"d minimi;e thi! di!tortion Re+ent

!+ho"ar!hi !ugge!t! that in the Qnited State! the federa" go7ernment effe+ti7e",

tae! in7e!tment! in higher edu+ation more hea7i", than it !u!idi;e! higher

edu+ation there, +ontriuting to a !hortage of !3i""ed or3er! and unu!ua"", high

differen+e! in re-ta earning! eteen high", edu+ated and "e!! edu+ated or3er!

Go7ernment! u!e different 3ind! of tae! and 7ar, the ta rate! *hi! i! done to

di!triute the ta urden among indi7idua"! or +"a!!e! of the ou"ation in7o"7ed in

taa"e a+ti7itie! !u+h a! u!ine!! or to redi!triute re!our+e! eteen indi7idua"!

or +"a!!e! in the ou"ation 9i!tori+a"", the noi"it, ere !uorted , tae! on

the oor modern !o+ia" !e+urit, !,!tem! are intended to !uort the oor the

di!a"ed or the retired , tae! on tho!e ho are !ti"" or3ing In addition tae!

are a"ied to fund foreign aid and mi"itar, 7enture! to inf"uen+e

the ma+roe+onomi+ erforman+e of the e+onom, (the go7ernment! !trateg, for

doing thi! i! +a""ed it! fi!+a" o"i+, !ee a"!o ta eemtion) or to modif, attern!

of +on!umtion or em"o,ment ithin an e+onom, , ma3ing !ome +"a!!e! of

tran!a+tion more or "e!! attra+ti7e

4 nation! ta !,!tem i! often a ref"e+tion of it! +ommuna" 7a"ue! and the 7a"ue! of

tho!e in +urrent o"iti+a" oer *o +reate a !,!tem of taation a nation mu!t ma3e

+hoi+e! regarding the di!triution of the ta urdenho i"" a, tae! and ho

mu+h the, i"" a,and ho the tae! +o""e+ted i"" e !ent In demo+rati+

nation! here the u"i+ e"e+t! tho!e in +harge of e!ta"i!hing the ta !,!tem the!e

+hoi+e! ref"e+t the t,e of +ommunit, that the u"i+ i!he! to +reate In +ountrie!

here the u"i+ doe! not ha7e a !ignifi+ant amount of inf"uen+e o7er the !,!tem of

taation that !,!tem ma, e more of a ref"e+tion on the 7a"ue! of tho!e in oer

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https://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Nobilityhttps://en.wikipedia.org/wiki/Social_securityhttps://en.wikipedia.org/wiki/Macroeconomichttps://en.wikipedia.org/wiki/Fiscal_policyhttps://en.wikipedia.org/wiki/Tax_exemptionhttps://en.wikipedia.org/wiki/Businesshttps://en.wikipedia.org/wiki/Nobilityhttps://en.wikipedia.org/wiki/Social_securityhttps://en.wikipedia.org/wiki/Macroeconomichttps://en.wikipedia.org/wiki/Fiscal_policyhttps://en.wikipedia.org/wiki/Tax_exemption


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4"" "arge u!ine!!e! in+ur admini!trati7e +o!t! in the ro+e!! of de"i7ering re7enue

+o""e+ted from +u!tomer! to the !u"ier! of the good! or !er7i+e! eing ur+ha!ed

*aation i! no different the re!our+e +o""e+ted from the u"i+ through taation i!

a"a,! greater than the amount hi+h +an e u!ed , the go7ernment *he

differen+e i! +a""ed the +om"ian+e +o!t and in+"ude! for eam"e the "aour +o!t

and other een!e! in+urred in +om",ing ith ta "a! and ru"e! *he +o""e+tion of

a ta in order to !end it on a !e+ified uro!e for eam"e +o""e+ting a ta on

a"+oho" to a, dire+t", for a"+oho"i!m rehai"itation +entre! i! +a""ed h,othe+ation

*hi! ra+ti+e i! often di!"i3ed , finan+e mini!ter! !in+e it redu+e! their freedom of

a+tion Some e+onomi+ theori!t! +on!ider the +on+et to e inte""e+tua"", di!hone!t

!in+e in rea"it, mone, i! fungi"e =urthermore it often haen! that tae! or

e+i!e! initia"", "e7ied to fund !ome !e+ifi+ go7ernment rogram! are then "ater

di7erted to the go7ernment genera" fund In !ome +a!e! !u+h tae! are +o""e+ted in

fundamenta"", ineffi+ient a,! for eam"e higha, to""!

Sin+e go7ernment! a"!o re!o"7e +ommer+ia" di!ute! e!e+ia"", in +ountrie!

ith +ommon "a !imi"ar argument! are !ometime! u!ed to .u!tif, a !a"e!

ta or 7a"ue added ta


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ind of Taxes

Taxes on income

Income tax

Man, .uri!di+tion! ta the in+ome of indi7idua"! and u!ine!! entitie! in+"uding

+ororation! Genera"", the ta i! imo!ed on net rofit! from u!ine!! net gain!

and other in+ome Fomutation of in+ome !u.e+t to ta ma, e determined under

a++ounting rin+i"e! u!ed in the .uri!di+tion hi+h ma, e modified or re"a+ed

, ta "a rin+i"e! in the .uri!di+tion *he in+iden+e of taation 7arie! , !,!tem

and !ome !,!tem! ma, e 7ieed a! rogre!!i7e or regre!!i7e Rate! of ta ma,

7ar, or e +on!tant (f"at) , in+ome "e7e" Man, !,!tem! a""o indi7idua"! +ertain

er!ona" a""oan+e! and other nonu!ine!! redu+tion! to taa"e in+ome a"though

u!ine!! dedu+tion! tend to e fa7ored o7er er!ona" dedu+tion![5]

'er!ona" in+ome ta i! often +o""e+ted on a a,-a!-,ou-earn a!i! ith !ma""

+orre+tion! made !oon after the end of the ta ,ear *he!e +orre+tion! ta3e one of

to form!: a,ment! to the go7ernment for taa,er! ho ha7e not aid enough

during the ta ,ear and ta refund! from the go7ernment for tho!e ho ha7e

o7eraid In+ome ta !,!tem! i"" often ha7e dedu+tion! a7ai"a"e that "e!!en the

tota" ta "iai"it, , redu+ing tota" taa"e in+ome *he, ma, a""o "o!!e! from one

t,e of in+ome to e +ounted again!t another =or eam"e a "o!! on the !to+3

mar3et ma, e dedu+ted again!t tae! aid on age!


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Ne"ati#e income tax

In e+onomi+! a negati7e in+ome ta (are7iated NI*) i! a rogre!!i7e in+ome

ta !,!tem here eo"e earning e"o a +ertain amount re+ei7e !u"ementa" a,

from the go7ernment in!tead of a,ing tae! to the go7ernment

apital "ains tax

Mo!t .uri!di+tion! imo!ing an in+ome ta treat +aita" gain! a! art of in+ome

!u.e+t to ta Faita" gain i! genera"", a gain on !a"e of +aita" a!!et!that i!

tho!e a!!et! not he"d for !a"e in the ordinar, +our!e of u!ine!! Faita" a!!et!

in+"ude er!ona" a!!et! in man, .uri!di+tion! Some .uri!di+tion! ro7ide

referentia" rate! of ta or on", artia" taation for +aita" gain! Some .uri!di+tion!

imo!e different rate! or "e7e"! of +aita" gain! taation a!ed on the "ength of time

the a!!et a! he"d Ee+au!e ta rate! are often mu+h "oer for +aita" gain! than for

ordinar, in+ome there i! ide!read +ontro7er!, and di!ute aout the roer

definition of +aita" Some ta !+ho"ar! ha7e argued that differen+e! in the a,!

different 3ind! of +aita" and in7e!tment are taed +ontriute to e+onomi+

di!tortion!

orporate tax

Fororate ta refer! to in+ome +aita" net orth or other tae! imo!ed on

+ororation! Rate! of ta and the taa"e a!e for +ororation! ma, differ from

tho!e for indi7idua"! or other taa"e er!on!

Social security contri%utions

Man, +ountrie! ro7ide u"i+", funded retirement or hea"th +are !,!tem! [H] In

+onne+tion ith the!e !,!tem! the +ountr, t,i+a"", reCuire! em"o,er! andor

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https://en.wikipedia.org/wiki/Progressive_income_taxhttps://en.wikipedia.org/wiki/Progressive_income_taxhttps://en.wikipedia.org/wiki/Capital_gainhttps://en.wikipedia.org/wiki/Tax#cite_note-7https://en.wikipedia.org/wiki/Progressive_income_taxhttps://en.wikipedia.org/wiki/Progressive_income_taxhttps://en.wikipedia.org/wiki/Capital_gainhttps://en.wikipedia.org/wiki/Tax#cite_note-7


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em"o,ee! to ma3e +omu"!or, a,ment![L] *he!e a,ment! are often +omuted ,

referen+e to age! or earning! from !e"f-em"o,ment *a rate! are genera"", fied

ut a different rate ma, e imo!ed on em"o,er! than on em"o,ee![%] Some

!,!tem! ro7ide an uer "imit on earning! !u.e+t to the ta 4 fe !,!tem!

ro7ide that the ta i! a,a"e on", on age! ao7e a arti+u"ar amount Su+h uer

or "oer "imit! ma, a", for retirement ut not hea"th +are +omonent! of the ta

Some ha7e argued that !u+h tae! on age! are a form of Ofor+ed !a7ing!O and not

rea"", a ta hi"e other! oint to redi!triution through !u+h !,!tem! eteen

generation! (from neer +ohort! to o"der +ohort!) and a+ro!! in+ome "e7e"! (from

higher in+ome "e7e"! to "oer in+ome "e7e"!) hi+h !ugge!t that !u+h rogram! are

rea"", ta and !ending rogram![5] Some ta !+ho"ar! argue that !uorting !o+ia"

!e+urit, rogram! e+"u!i7e", through tae! on age! rather than through roader

tae! that in+"ude +aita" +reate! di!tortion! and underin7e!tment in human +aita"

!in+e the return! to !u+h in7e!tment! i"" e tae! a! age!

Taxes on payroll or or&force

Qnem"o,ment and !imi"ar tae! are often imo!ed on em"o,er! a!ed on tota" a,ro"" *he!e tae! ma, e imo!ed in oth the +ountr, and !u-+ountr, "e7e"![

Taxes on property

Re+urrent roert, tae! ma, e imo!ed on immo7a"e roert, (rea" roert,)

and !ome +"a!!e! of mo7a"e roert, In addition re+urrent tae! ma, e imo!ed

on net ea"th of indi7idua"! or +ororation! [11] Man, .uri!di+tion! imo!e e!tate

ta gift ta or other inheritan+e tae! on roert, at death or gift tran!fer Some

.uri!di+tion! imo!e tae! on finan+ia" or +aita" tran!a+tion!

Property tax

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https://en.wikipedia.org/wiki/Tax#cite_note-8https://en.wikipedia.org/wiki/Tax#cite_note-9https://en.wikipedia.org/wiki/Tax#cite_note-Human_Capital_Tax-5https://en.wikipedia.org/wiki/Tax#cite_note-11https://en.wikipedia.org/wiki/Estate_taxhttps://en.wikipedia.org/wiki/Estate_taxhttps://en.wikipedia.org/wiki/Gift_taxhttps://en.wikipedia.org/wiki/Inheritance_taxhttps://en.wikipedia.org/wiki/Tax#cite_note-8https://en.wikipedia.org/wiki/Tax#cite_note-9https://en.wikipedia.org/wiki/Tax#cite_note-Human_Capital_Tax-5https://en.wikipedia.org/wiki/Tax#cite_note-11https://en.wikipedia.org/wiki/Estate_taxhttps://en.wikipedia.org/wiki/Estate_taxhttps://en.wikipedia.org/wiki/Gift_taxhttps://en.wikipedia.org/wiki/Inheritance_tax


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4 roert, ta (or mi""age ta) i! an ad 7a"orem ta "e7, on the 7a"ue of roert,

that the oner of the roert, i! reCuired to a, to a go7ernment in hi+h the

roert, i! !ituated Mu"ti"e .uri!di+tion! ma, ta the !ame roert, *here are

three genera" 7arietie! of roert,: "and imro7ement! to "and (immo7a"e man-

made thing! eg ui"ding!) and er!ona" roert, (mo7a"e thing!) Rea" e!tate or

rea"t, i! the +omination of "and and imro7ement! to "and

'roert, tae! are u!ua"", +harged on a re+urrent a!i! (eg ,ear",) 4 +ommon

t,e of roert, ta i! an annua" +harge on the oner!hi of rea" e!tate here the

ta a!e i! the e!timated 7a"ue of the roert, =or a eriod of o7er 150 ,ear! from

16%5 a indo ta a! "e7ied in Png"and ith the re!u"t that one +an !ti"" !ee "i!ted

ui"ding! ith indo! ri+3ed u in order to !a7e their oner! mone, 4 !imi"ar

ta on hearth! ei!ted in =ran+e and e"!ehere ith !imi"ar re!u"t! *he to mo!t

+ommon t,e of e7ent dri7en roert, tae! are !tam dut, +harged uon +hange

of oner!hi and inheritan+e ta hi+h i! imo!ed in man, +ountrie! on the

e!tate! of the de+ea!ed

In +ontra!t ith a ta on rea" e!tate ("and and ui"ding!) a 8and Ba"ue *a (or 8B*)i! "e7ied on", on the unimro7ed 7a"ue of the "and (O"andO in thi! in!tan+e ma,

mean either the e+onomi+ term ie a"" natura" re!our+e! or the natura" re!our+e!

a!!o+iated ith !e+ifi+ area! of the Parth! !urfa+e: O"ot!O or O"and ar+e"!O)

'roonent! of "and 7a"ue ta argue that it i! e+onomi+a"", .u!tified a! it i"" not

deter rodu+tion di!tort mar3et me+hani!m! or otheri!e +reate deadeight

"o!!e! the a, other tae! do[12]

Ahen rea" e!tate i! he"d , a higher go7ernment unit or !ome other entit, not

!u.e+t to taation , the "o+a" go7ernment the taing authorit, ma, re+ei7e

16 & ' a g e

https://en.wikipedia.org/wiki/Ad_valorem_taxhttps://en.wikipedia.org/wiki/Real_estatehttps://en.wikipedia.org/wiki/Window_taxhttps://en.wikipedia.org/wiki/Listed_buildingshttps://en.wikipedia.org/wiki/Listed_buildingshttps://en.wikipedia.org/wiki/Stamp_dutyhttps://en.wikipedia.org/wiki/Inheritance_taxhttps://en.wikipedia.org/wiki/Land_value_taxhttps://en.wikipedia.org/wiki/Deadweight_losshttps://en.wikipedia.org/wiki/Deadweight_losshttps://en.wikipedia.org/wiki/Tax#cite_note-12https://en.wikipedia.org/wiki/Ad_valorem_taxhttps://en.wikipedia.org/wiki/Real_estatehttps://en.wikipedia.org/wiki/Window_taxhttps://en.wikipedia.org/wiki/Listed_buildingshttps://en.wikipedia.org/wiki/Listed_buildingshttps://en.wikipedia.org/wiki/Stamp_dutyhttps://en.wikipedia.org/wiki/Inheritance_taxhttps://en.wikipedia.org/wiki/Land_value_taxhttps://en.wikipedia.org/wiki/Deadweight_losshttps://en.wikipedia.org/wiki/Deadweight_losshttps://en.wikipedia.org/wiki/Tax#cite_note-12


17/31

[ RIMS- 2016]

a a,ment in "ieu of tae! to +omen!ate it for !ome or a"" of the foregone ta

re7enue!

In man, .uri!di+tion! (in+"uding man, 4meri+an !tate!) there i! a genera" ta "e7ied

eriodi+a"", on re!ident! ho on er!ona" roert, (er!ona"t,) ithin the

.uri!di+tion Behi+"e and oat regi!tration fee! are !u!et! of thi! 3ind of ta *he

ta i! often de!igned ith "an3et +o7erage and "arge e+etion! for thing! "i3e food

and +"othing 9ou!eho"d good! are often eemt hen 3et or u!ed ithin the

hou!eho"d[1#] 4n, otheri!e non-eemt o.e+t +an "o!e it! eemtion if regu"ar",

3et out!ide the hou!eho"d[1#] *hu! ta +o""e+tor! often monitor ne!aer arti+"e!

for !torie! aout ea"th, eo"e ho ha7e "ent art to mu!eum! for u"i+ di!"a,

e+au!e the artor3! ha7e then e+ome !u.e+t to er!ona" roert, ta[1#] If an

artor3 had to e !ent to another !tate for !ome tou+h-u! it ma, ha7e e+ome

!u.e+t to er!ona" roert, ta in that !tate a! e""[1#]

Inheritance tax

Inheritan+e ta e!tate ta and death ta or dut, are the name! gi7en to 7ariou!

tae! hi+h ari!e on the death of an indi7idua" In Qnited State! ta "a there i! a

di!tin+tion eteen an e!tate ta and an inheritan+e ta: the former tae! the

er!ona" rere!entati7e! of the de+ea!ed hi"e the "atter tae! the enefi+iarie! of

the e!tate 9oe7er thi! di!tin+tion doe! not a", in other .uri!di+tion! for

eam"e if u!ing thi! termino"og, QT inheritan+e ta ou"d e an e!tate ta

4xpatriation tax

4n eatriation ta i! a ta on indi7idua"! ho renoun+e their +iti;en!hi or

re!iden+e *he ta i! often imo!ed a!ed on a deemed di!o!ition of a"" the

indi7idua"! roert,


18/31

[ RIMS- 2016]

in+ome-ta "iai"it, of K12H000 ho renoun+e! hi! or her +iti;en!hi and "ea7e! the

+ountr, i! automati+a"", a!!umed to ha7e done !o for ta a7oidan+e rea!on! and i!

!u.e+t to a higher ta rate[1$]

Transfer tax

9i!tori+a"", in man, +ountrie! a +ontra+t needed to ha7e a !tam affied to ma3e it

7a"id *he +harge for the !tam a! either a fied amount or a er+entage of the

7a"ue of the tran!a+tion In mo!t +ountrie! the !tam ha! een ao"i!hed ut !tam

dut, remain! Stam dut, i! "e7ied in the QT on the ur+ha!e of !hare! and

!e+uritie! the i!!ue of earer in!trument! and +ertain artner!hi tran!a+tion! It!

modern deri7ati7e! !tam dut, re!er7e ta and !tam dut, "and ta are

re!e+ti7e", +harged on tran!a+tion! in7o"7ing !e+uritie! and "and Stam dut, ha!

the effe+t of di!+ouraging !e+u"ati7e ur+ha!e! of a!!et! , de+rea!ing "iCuidit, In

the Qnited State! tran!fer ta i! often +harged , the !tate or "o+a" go7ernment and

(in the +a!e of rea" roert, tran!fer!) +an e tied to the re+ording of the deed or

other tran!fer do+ument!

Wealth 5net orth6 tax

Some +ountrie! go7ernment! i"" reCuire de+"aration of the ta a,er! a"an+e

!heet (a!!et! and "iai"itie!) and from that ea+t a ta on net orth (a!!et! minu!

"iai"itie!) a! a er+entage of the net orth or a er+entage of the net orth

e+eeding a +ertain "e7e" *he ta ma, e "e7ied on Onatura"O or "ega" Oer!on!O

Taxes on "oods and ser#ices

7alue added tax 58oods and Ser#ices Tax6

1L & ' a g e

https://en.wikipedia.org/wiki/Tax#cite_note-14https://en.wikipedia.org/wiki/Stamp_dutyhttps://en.wikipedia.org/wiki/Stamp_dutyhttps://en.wikipedia.org/wiki/Stamp_duty_reserve_taxhttps://en.wikipedia.org/wiki/Stamp_duty_land_taxhttps://en.wikipedia.org/wiki/United_Stateshttps://en.wikipedia.org/wiki/Balance_sheethttps://en.wikipedia.org/wiki/Balance_sheethttps://en.wikipedia.org/wiki/Net_worthhttps://en.wikipedia.org/wiki/Natural_personhttps://en.wikipedia.org/wiki/Juristic_personhttps://en.wikipedia.org/wiki/Tax#cite_note-14https://en.wikipedia.org/wiki/Stamp_dutyhttps://en.wikipedia.org/wiki/Stamp_dutyhttps://en.wikipedia.org/wiki/Stamp_duty_reserve_taxhttps://en.wikipedia.org/wiki/Stamp_duty_land_taxhttps://en.wikipedia.org/wiki/United_Stateshttps://en.wikipedia.org/wiki/Balance_sheethttps://en.wikipedia.org/wiki/Balance_sheethttps://en.wikipedia.org/wiki/Net_worthhttps://en.wikipedia.org/wiki/Natural_personhttps://en.wikipedia.org/wiki/Juristic_person


19/31

[ RIMS- 2016]

4 7a"ue added ta (B4*) a"!o 3non a! Good! and Ser7i+e! *a (GS*) Sing"e

Eu!ine!! *a or *urno7er *a in !ome +ountrie! a"ie! the eCui7a"ent of a !a"e!

ta to e7er, oeration that +reate! 7a"ue *o gi7e an eam"e !heet !tee" i! imorted

, a ma+hine manufa+turer *hat manufa+turer i"" a, the B4* on the ur+ha!e

ri+e remitting that amount to the go7ernment *he manufa+turer i"" then

tran!form the !tee" into a ma+hine !e""ing the ma+hine for a higher ri+e to a

ho"e!a"e di!triutor *he manufa+turer i"" +o""e+t the B4* on the higher ri+e

ut i"" remit to the go7ernment on", the e+e!! re"ated to the O7a"ue addedO (the

ri+e o7er the +o!t of the !heet !tee") *he ho"e!a"e di!triutor i"" then +ontinue

the ro+e!! +harging the retai" di!triutor the B4* on the entire ri+e to the retai"er

ut remitting on", the amount re"ated to the di!triution mar3-u to the go7ernment

*he "a!t B4* amount i! aid , the e7entua" retai" +u!tomer ho +annot re+o7er

an, of the re7iou!", aid B4* =or a B4* and !a"e! ta of identi+a" rate! the tota"

ta aid i! the !ame ut it i! aid at differing oint! in the ro+e!!

B4* i! u!ua"", admini!trated , reCuiring the +oman, to +om"ete a B4* return

gi7ing detai"! of B4* it ha! een +harged (referred to a! inut ta) and B4* it ha!

+harged to other! (referred to a! outut ta) *he differen+e eteen outut ta and

inut ta i! a,a"e to the 8o+a" *a 4uthorit,

Sales taxes

Sa"e! tae! are "e7ied hen a +ommodit, i! !o"d to it! fina" +on!umer Retai"

organi;ation! +ontend that !u+h tae! di!+ourage retai" !a"e! *he Cue!tion of

hether the, are genera"", rogre!!i7e or regre!!i7e i! a !u.e+t of mu+h +urrentdeate 'eo"e ith higher in+ome! !end a "oer roortion of them !o a f"at-rate

!a"e! ta i"" tend to e regre!!i7e It i! therefore +ommon to eemt food uti"itie!

and other ne+e!!itie! from !a"e! tae! !in+e oor eo"e !end a higher roortion

1% & ' a g e


20/31

[ RIMS- 2016]

of their in+ome! on the!e +ommoditie! !o !u+h eemtion! ma3e the ta more

rogre!!i7e *hi! i! the +"a!!i+ ODou a, for hat ,ou !endO ta a! on", tho!e ho

!end mone, on non-eemt (ie "uur,) item! a, the ta

4 !ma"" numer of QS !tate! re", entire", on !a"e! tae! for !tate re7enue a! tho!e

!tate! do not "e7, a !tate in+ome ta Su+h !tate! tend to ha7e a moderate to "arge

amount of touri!m or inter-!tate tra7e" that o++ur! ithin their order! a""oing the

!tate to enefit from tae! from eo"e the !tate ou"d otheri!e not ta In thi!

a, the !tate i! a"e to redu+e the ta urden on it! +iti;en! *he QS !tate! that do

not "e7, a !tate in+ome ta are 4"a!3a *enne!!ee ="orida Ne7ada South @a3ota

*ea![15]

Aa!hington !tate and A,oming 4dditiona"", Ne 9am!hire and

*enne!!ee "e7, !tate in+ome tae! on", on di7idend! and intere!t in+ome S*] hi+h i! a!ed on the GS* ith +ertain

differen+e! Mo!t u!ine!!e! +an +"aim a+3 the GS* 9S* and >S* the, a, and

!o effe+ti7e", it i! the fina" +on!umer ho a,! the ta

4xcises

20 & ' a g e

https://en.wikipedia.org/wiki/Tax#cite_note-15https://en.wikipedia.org/wiki/Dividend_taxhttps://en.wikipedia.org/wiki/FairTaxhttps://en.wikipedia.org/wiki/Tax#cite_note-15https://en.wikipedia.org/wiki/Dividend_taxhttps://en.wikipedia.org/wiki/FairTax


21/31

[ RIMS- 2016]

4n e+i!e dut, i! an indire+t ta imo!ed uon good! during the ro+e!! of their

manufa+ture rodu+tion or di!triution and i! u!ua"", roortionate to their

Cuantit, or 7a"ue P+i!e dutie! ere fir!t introdu+ed into Png"and in the ,ear 16$#

a! art of a !+heme of re7enue and taation de7i!ed , ar"iamentarian ohn

',m and aro7ed , the 8ong 'ar"iament *he!e dutie! +on!i!ted of +harge! on

eer a"e +ider +herr, ine and toa++o to hi+h "i!t ere afterard! added aer

!oa +and"e! ma"t ho! and !eet! *he a!i+ rin+i"e of e+i!e dutie! a! that

the, ere tae! on the rodu+tion manufa+ture or di!triution of arti+"e! hi+h

+ou"d not e taed through the +u!tom! hou!e and re7enue deri7ed from that !our+e

i! +a""ed e+i!e re7enue roer *he fundamenta" +on+etion of the term i! that of a

ta on arti+"e! rodu+ed or manufa+tured in a +ountr, In the taation of !u+h

arti+"e! of "uur, a! !irit! eer toa++o and +igar! it ha! een the ra+ti+e to

"a+e a +ertain dut, on the imortation of the!e arti+"e! (a +u!tom! dut,)

P+i!e! (or eemtion! from them) are a"!o u!ed to modif, +on!umtion attern!

(!o+ia" engineering) =or eam"e a high e+i!e i! u!ed todi!+ourage a"+oho" +on!umtion re"ati7e to other good! *hi! ma, e +omined

ith h,othe+ation if the ro+eed! are then u!ed to a, for the +o!t! of treating

i""ne!! +au!ed , a"+oho" au!e Simi"ar tae! ma, ei!t on toa++o ornograh,

et+ and the, ma, e +o""e+ti7e", referred to a! O!in tae!O 4 +aron ta i! a ta on

the +on!umtion of +aron-a!ed non-renea"e fue"! !u+h a! etro" die!e"-fue"

.et fue"! and natura" ga! *he o.e+t i! to redu+e the re"ea!e of +aron into the

atmo!here In the Qnited Tingdom 7ehi+"e e+i!e dut, i! an annua" ta on 7ehi+"e

oner!hi

Tariff

21 & ' a g e

https://en.wikipedia.org/wiki/Indirect_taxhttps://en.wikipedia.org/wiki/John_Pymhttps://en.wikipedia.org/wiki/John_Pymhttps://en.wikipedia.org/wiki/Long_Parliamenthttps://en.wikipedia.org/wiki/Customs_househttps://en.wikipedia.org/wiki/Tariffhttps://en.wikipedia.org/wiki/Social_engineering_(political_science)https://en.wikipedia.org/wiki/Alcoholic_beveragehttps://en.wikipedia.org/wiki/Hypothecated_taxhttps://en.wikipedia.org/wiki/Tobaccohttps://en.wikipedia.org/wiki/Pornographyhttps://en.wikipedia.org/wiki/Sin_taxhttps://en.wikipedia.org/wiki/Carbon_taxhttps://en.wikipedia.org/wiki/Vehicle_excise_dutyhttps://en.wikipedia.org/wiki/Indirect_taxhttps://en.wikipedia.org/wiki/John_Pymhttps://en.wikipedia.org/wiki/John_Pymhttps://en.wikipedia.org/wiki/Long_Parliamenthttps://en.wikipedia.org/wiki/Customs_househttps://en.wikipedia.org/wiki/Tariffhttps://en.wikipedia.org/wiki/Social_engineering_(political_science)https://en.wikipedia.org/wiki/Alcoholic_beveragehttps://en.wikipedia.org/wiki/Hypothecated_taxhttps://en.wikipedia.org/wiki/Tobaccohttps://en.wikipedia.org/wiki/Pornographyhttps://en.wikipedia.org/wiki/Sin_taxhttps://en.wikipedia.org/wiki/Carbon_taxhttps://en.wikipedia.org/wiki/Vehicle_excise_duty


22/31

[ RIMS- 2016]

4n imort or eort tariff (a"!o +a""ed +u!tom! dut, or imo!t) i! a +harge for the

mo7ement of good! through a o"iti+a" order *ariff! di!+ourage trade and the,

ma, e u!ed , go7ernment! to rote+t dome!ti+ indu!trie! 4 roortion of tariff

re7enue! i! often h,othe+ated to a, go7ernment to maintain a na7, or order

o"i+e *he +"a!!i+ a,! of +heating a tariff are !mugg"ing or de+"aring a fa"!e 7a"ue

of good! *a tariff and trade ru"e! in modern time! are u!ua"", !et together e+au!e

of their +ommon ima+t on indu!tria" o"i+, in7e!tment o"i+, and agri+u"tura"

o"i+,

Existing problems

*aation i! a genera" +on+et for de7i+e! u!ed , go7ernment! to etra+t mone, or

other 7a"ua"e thing! from eo"e and organi;ation! , the u!e of "a 4 ta

formu"a +ontain! at "ea!t three e"ement!: the definition of the a!e the rate

!tru+ture and the identifi+ation of the "ega" taa,er *he a!e mu"ti"ied , the

aroriate rate gi7e! a rodu+t +a""ed the ta "iai"it, hi+h i! the "ega" o"igation

that the taa,er mu!t meet at !e+ified date! 4 ta i! identified , the

+hara+teri!ti+! of it! a!e !u+h a! in+ome in the +a!e of an in+ome ta the Cuantit,

of di!ti""ed !irit! !o"d in the +a!e of a "iCuor ta and !o on *he rate !tru+ture ma,

e !im"e +on!i!ting of one rate a",ing to the a!e !u+h a! a !e+ified numer of

+ent! er ga""on for a ta on ga!o"ine or +om"e for eam"e 7ar,ing rate!

deending uon the !i;e of the a!e for a ta on er!ona" in+ome

*ae! ma, e a!!e!!ed in mone, or in 3ind *he go7ernment of Fommuni!t Fhina

imo!e! tae! on ea!ant! a!!e!!ed in unit! of grain rodu+ed and it reCuire!

a,ment in grain it!e"f In the 4meri+an Fonfedera+, e+au!e of the deterioration

22 & ' a g e

https://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Smugglinghttps://en.wikipedia.org/wiki/Industrial_policyhttps://en.wikipedia.org/wiki/Investment_policyhttps://en.wikipedia.org/wiki/Agricultural_policyhttps://en.wikipedia.org/wiki/Agricultural_policyhttps://en.wikipedia.org/wiki/Tradehttps://en.wikipedia.org/wiki/Smugglinghttps://en.wikipedia.org/wiki/Industrial_policyhttps://en.wikipedia.org/wiki/Investment_policyhttps://en.wikipedia.org/wiki/Agricultural_policyhttps://en.wikipedia.org/wiki/Agricultural_policy


23/31

[ RIMS- 2016]

of the Fonfederate mone, during the "atter ha!e! of the 4meri+an Fi7i" Aar !ome

tae! ere a!!e!!ed and +o""e+ted in term! of +ommoditie! In 4meri+an frontier

!ett"ement! of the eighteenth and ear", nineteenth +enturie! the "o+a" go7ernment!

formed , the eo"e in the region +ommon", imo!ed tae! , reCue!ting that

ea+h adu"t ma"e or3 a gi7en numer of da,! +on!tru+ting +ommunit, fa+i"itie!

!u+h a! road! and !+hoo"! *he modern-da, +ounterart of thi! ra+ti+e i!

+on!+rition of men for !er7i+e in the armed for+e! a"though +on!+rition i! not

genera"", +on!idered a! a ta *he dominant ra+ti+e hoe7er in the +ontemorar,

or"d i! the a!!e!!ment of tae! in mone, and the !ett"ement of the ta "iai"it, ,

the a,ment of mone,

*aation re!uo!e! ri7ate oner!hi of ea"th If a go7ernment oned a""

ea"th in a !o+iet, in+"uding the ea"th emodied in eo"e it ou"d otain a""

in+ome and there ou"d e nothing to ta No go7ernment ha! gone to !u+h

etreme! in +on+entrating the ea"th of a !o+iet, in it! on hand! P7en in high",

!o+ia"i;ed !o+ietie! !u+h a! the So7iet Qnion eo"e are ermitted !u.e+t to

re!tri+tion! to on them!e"7e! hou!eho"d good! !a7ing! a++ount! and mone,*aation therefore e+ome! fea!i"e Ne7erthe"e!! the more ea"th a go7ernment

it!e"f on! the "e!! i! taation ne+e!!ar, e+au!e re7enue from the management of

a!!et! i! a !u!titute for ta re+eit! Nationa" go7ernment! ith the e+etion of

!ome of the high", !o+ia"i;ed +ountrie! t,i+a"", find them!e"7e! on the other !ide

of the "edger ha7ing on a"an+e negati7e net orth! aart from their taing oer

Some "o+a" go7ernment! in e!tern Puroe and the Qnited State! ha7e !u!tantia"

re7enue! from go7ernment-oned fa+i"itie! !u+h a! e"e+tri+ oer "ant! muni+ia"

ater fa+i"itie! and tran!ort !,!tem! *he rofit! from the management of the!e

fa+i"itie! are o++a!iona"", !uffi+ient to ermit a go7ernment to di!en!e ith

taation a"together

2# & ' a g e


24/31

[ RIMS- 2016]

*ae! are to e di!tingui!hed from ri+e! imo!ed , a go7ernment for good! and

!er7i+e! that it ro7ide! 4 ri+e i! a mone, a,ment made a! a +ondition of

otaining good! or !er7i+e! It !er7e! a! a rationing de7i+e ro7ided that the ri+e i!

o!iti7e and ro7ided that the amount of the good! or !er7i+e! the u,er re+ei7e! in

return deend! uon the ri+e If a go7ernment !u"ie! ater and +harge!

a++ording to the amount of ater ta3en , the u,er the de7i+e i! a ri+e and not a

ta Eorder"ine +a!e! ari!e in to t,e! of +ir+um!tan+e!: (1) hen a +harge i! made

a! a +ondition of an a""-or-none +hoi+e !u+h a! a fee for a "i+en!e for an automoi"e

a! a +ondition of oerating the 7ehi+"e on an, u"i+ higha, or (2) hen a

go7ernment imo!e! a reCuirement that the +iti;en u!e a !er7i+e and then +harge!

for the !er7i+e ta3en !u+h a! a reCuirement for a a!!ort for foreign tra7e"

a++omanied , a +harge for the a!!ort In !ituation! in hi+h the e"ement of

go7ernment +omu"!ion enter! !ignifi+ant", it i! +u!tomar, a! e"" a! rea!ona"e to

treat the +harge a! a ta rather than a! a ri+e

lassification of taxes *ae! ma, e +"a!!ified in 7ariou! a,! Sin+e a ta i! a

formu"a of three ingredient!a a!e a rate !tru+ture and identifi+ation of the "ega"taa,era +ommon +hara+teri!ti+ of an, of the!e three e"ement! ma, e

em"o,ed for grouing *hu! tae! ma, e +"a!!ified a! er!ona" or u!ine!! In

!u+h a +"a!!ifi+ation a ta on eer i! a u!ine!! ta e+au!e u!ine!! organi;ation!

are in fa+t the "ega" taa,er! More +ommon", tae! are groued on the a!i! of

!imi"aritie! of the ta a!e for eam"e +ommodit, tae! refer to a"" tae! in hi+h

the rodu+tion or !a"e of +ommoditie! e+ome! the o++a!ion for a go7ernment "e7,

P7en though er!ona" in+ome tae! 7ar, ide", in their +hara+teri!ti+! among

+ountrie! the re!umed +ommon e"ement of the ta a!eer!ona" in+omei!

u!ed for grouing uro!e!

2$ & ' a g e


25/31

[ RIMS- 2016]

'erha! the !ing"e mo!t ide", u!ed di!tin+tion i! eteen hat i! +a""ed /dire+t

taation and hat i! +a""ed /indire+t *hi! i! a +"a!!ifi+ation a!ed on +ertain

re!umed effe+t! of 7ariou! tae! 4 dire+t ta in thi! u!age refer! to one in hi+h

the "ega" taa,er +annot !hift an, of the ta "iai"it, to other eo"e !u+h a!

+u!tomer! or !u"ier! 4 +"ear i""u!tration of a dire+t ta i! a "um-!um +harge

"e7ied on a er!on!ometime! +a""ed a head ta or o"" ta In+ome death net

orth eenditure and !ometime! roert, tae! are +ommon", +"a!!ified a!

dire+t Indire+t tae! refer to tho!e that are thought to e !hifted from the "ega"

taa,er to other! Fommon", tae! on !a"e! of +ommoditie! imort dutie! and

"i+en!e fee! are groued together a! indire+t

E, o!tu"ating +ommon effe+t! of 7ariou! tae! the dire+t-indire+t +"a!!ifi+ation

e+ome! !u.e+t to to !eriou! defe+t! *he effe+t! of a arti+u"ar ta de7i+e are not

intuiti7e", aarent their di!+o7er, entai"! +arefu" !+ientifi+ in7e!tigation It i! thu!

a3ard to em"o, a +"a!!ifi+ation that eg! the!e Cue!tion! in ad7an+e *here i!

the further diffi+u"t, that the !hifting of a ta , the "ega" taa,er to other! ma,

o++ur in 7ariou! degree! from 0 to 100 er +ent If a arti+u"ar ta i! ro7ed to e!hifted to other! , the amount of 25 er +ent for eam"e the dire+t-indire+t

+"a!!ifi+ation e+ome! irre"e7ant


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*he +om"i+ated nature of the indi7idua" in+ome ta imo!e! +o!t! not on", on

taa,er! ho eend time and mone, rearing and fi"ing their return! ut a"!o

on the Interna" Re7enue Ser7i+e hi+h ha! to audit tho!e return! and dea" ith the

ine7ita"e mi!ta3e! taa,er! ma3e Bariou! !te! to !im"if, the in+ome ta +ou"d

redu+e +o!t! !ignifi+ant", for oth taa,er! and the IRS

9odify or repeal the alternati#e minimum tax:


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[ RIMS- 2016]

"imit! ut !etting them at the !ame or !imi"ar "e7e"! at "ea!t for re"ated a+ti7itie!

ou"d redu+e +om"eit, hi"e 3eeing the enefit! aimed at taa,er! ith "o

to moderate in+ome! 4t the !ame time hoe7er if mu"ti"e enefit! ha!ed out

o7er the !ame in+ome range effe+ti7e margina" ta rate! in that range +ou"d rea+h

una++eta"e "e7e"!

om%ine education tax %enefits: =ami"ie! ith !tudent! in +o""ege ma, Cua"if,

for mu"ti"e ta enefit! to defra, edu+ationa" een!e! ut often ma, +"aim on",

one of them =or eam"e a fami", ma, e a"e to +"aim either the 9


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[ RIMS- 2016]

numer of +hi"dren and different a++ounting for different 3ind! of in+ome

Re"aing the reCuirement! and ma3ing the +redit arameter! the !ame a+ro!!

taa,er! ith different +hara+teri!ti+! +ou"d redu+e +om"eit, ut ou"d a"!o

"imit f"eii"it, in ro7iding different "e7e"! of enefit!

;se a sin"le definition of


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Experience of the Student

Eenefit! of *ae!:

P7en though mo!t eo"e are a"a,! at odd! ith the idea of taation there are

!ome ad7antage! to tae! the "ea!t of hi+h i! that it ro7ide! the go7ernment the

re!our+e! it need! for e+onomi+ de7e"oment Some of the other enefit! of tae!

are:

• It en+ourage! !a7ing! and in7e!tment! e+au!e if a er!on in7e!t! in +ertain

in!trument! then the amount in7e!ted i! redu+ed from their taa"e in+ome thu! ringing don the ta the, ha7e to a, *hi! in7e!tment i! !u.e+t to +ertain

"imit! that are detai"ed in the I* 4+t

• 'a,ing tae! mean! that ,ou ha7e to fi"e ,our ta return! hi+h in turn mean!

that hen ,ou a", for a home "oan for that home "oan it! ea!ier to get it

e+au!e one of the thing! man, an3! reCuire i! roof that ,ou ha7e een fi"ing

tae! regu"ar",

'ena"t, for Not 'a,ing *ae!:

Pa+h t,e of ta ha! it! on ena"tie! a!!o+iated ith it *he!e ena"tie! +an range

from fine! to imri!onment deending on the !e7erit, of the +rime In !ome +a!e!

the ena"t, +ou"d e that ,ou ill ha#e to pay hat is oed in taxes alon" ith additional

sums as fine hi+h are de+ided uon , go7ernment offi+ia"!

It i! a"a,! ad7i!a"e to a, tae! on time and a"a,! e aare of the tae! that

,ou a! a +on!umer are "ia"e to a, !o that no-one +an ta3e ,ou for a ride

#0 & ' a g e


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• Fo-oeration of Guide - Ber, Good

• Getting 4ard Reard during +our!e- Nothing

• Re!u"t! ( =rom I !em to B !em ) :

SrNo F"a!!

accoutant- tasneem pakawala

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