On 28th of February 2015 Finance Minister Shri Arun Jaitley announced the budget of India for the Financial Year 2015-16. The Income Tax slabs/rates for the the Financial Year 2015-16 and Assessment Year 2016-17 is discussed below:
  
  

(I) For Individuals aged below 60 years (including Woman Assessees or any NRI/ HUF/ AOP/ BOI/ AJP):
 

Income

Tax Rate

Upto 250,000 Nil
250,000 to 500,000 10% of the amount exceeding 250,000Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
500,000 to 1,000,000 Rs.25,000 + 20% of the amount exceeding 500,000
1,000,000 & above Rs.125,000 + 30% of the amount exceeding 1,000,000

 

(II) For Senior Citizen (Individuals aged 60 years and above but below 80 years):

Income

Tax Rate

Upto 300,000 Nil
300,000 to 500,000 10% of the amount exceeding 300,000
500,000 to 1,000,000 Rs.20,000 + 20% of the amount exceeding 500,000
1,000,000 & above Rs.120,000 + 30% of the amount exceeding 1,000,000

 

(III) For Super Senior Citizen (For Individuals aged 80 years and above):

Income

Tax Rate

Upto 500,000 Nil
500,000 to 1,000,000 20% of the amount exceeding 500,000
1,000,000 & above Rs.100,000 + 30% of the amount exceeding 1,000,000

Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore.

Education Cess : 3% of the total of Income Tax and Surcharge.

Tax Credit U/S 87A: Finance Bill 2015 says nothing on the Section 87A. Hence this provision continues for AY 2016-17 as well and provides a rebate of Rs 2,000 for individual whose taxable income doesn’t exceed Rs. 500,000.

 

(IV) For Co-operative Society

Income

Tax Rate

i. Where the taxable income does not exceed Rs. 10,000/
10% of the income.
ii. Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.
Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii. Where the taxable income exceeds Rs. 20,000/-
Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-.

Surcharge : Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the Income Tax and Surcharge.

 

(V) For Firm

Income Tax Rate

Surcharge

Education Cess

30% of the taxable income. Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable) 3% of the Income Tax and Surcharge. 

 

(VI) For Local Authority

Income Tax Rate

Surcharge

Education Cess

30% of the taxable income. Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable) 3% of the Income Tax and Surcharge. 

 

(VII) For Domestic Company

Sl No.

Particulars

Tax Rate

Surcharge

Education Cess

Effective Tax

1.

Domestic companies (with total taxable income less than 1 Cr.)

30%

3%

30.90%

2.

Domestic companies (with total taxable income more than 1 Cr. but less than 10 Cr.)

30%

7%

3%

33.063%

3.

Domestic companies (with total taxable income more than 10 Cr.

30%

12%

3%

34.608%

 

(VIII) For Company other than a Domestic Company or Foreign Company

Sl No.

Particulars

Tax Rate

Surcharge

Education Cess

Effective Tax

1.

Foreign companies (with total income less than 1 Cr.)

40%

3%

41.20%

2.

Foreign companies (with total income more than 1 cr. but less than 10 Cr.)

40%

2%

3%

42.024%

3.

Other foreign companies

40%

5%

3%

43.26%

Income-tax-individual

Helpful Resources:

http://www.incometaxindia.gov.in/Pages/default.aspx

https://incometaxindiaefiling.gov.in/

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By financen | September 30, 2014 - 4:37 pm - Posted in Tax

They say there is nothing certain in life except death and taxes, so why not start your own tax preparation business. It is easy to start this type of business, and it is as close to as stable of a business as you will ever see. Regardless of the condition of the economy, there will always be a demand for people to prepare their taxes.

Although there is a lot to know about preparing taxes, the truth is that much of the work that is done today is done with software. It has become so simple that you do not need a degree in accounting to prepare someone’s tax returns. All you need to do is learn how to use tax preparation software.

There are companies that will license this type of software to you and train you to use it. Once you learn how to use the software, you only need to make sure your clients have the necessary information to enter the correct data. This type of software also has verification checks built into it to make sure the right data is being entered.

One of the best parts of starting your own tax preparation business is that you can operate the business right out of your own home. You can also do it part time throughout the year while you work another job. This takes much of the risk out of starting your own business.

There are several companies that will provide everything you need to get your tax business started. One example of this type of company is No Limit Tax Refunds. Their website has a click here button for more information.

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By financen | September 9, 2014 - 5:37 pm - Posted in Accounting, Tax

Let’s face it, no one likes taxes. Taxes are a necessary evil in life and every business or person needs to follow through on the best tax prepartion Calgary every year. Otherwise, the business or person could face an audit or a general headache when the taxes are due.

Tax-AccountingThe main problem most organizations and people have with taxes, however, is not that they exist, it’s that the tax laws always change. From one tax year to another, a family or small business could expect their tax rates to change on a federal level, in Alberta or with their municipal taxes in Calgary. Although most people expect they can handle their taxes, it is always a good choice to consult with an accountant or accounting firm.

Accountants or accounting firms may seem like a financial investment, but the investment is worth the time and money. Accounting in Calgary can be quite complex and an accountant or firm is here to help their clients. Every accountant, whether they are independent or part of a firm, will know the complexity of the Calgary, Alberta and Canadian tax code. These professionals also keep up-to-date on how the tax code changes. They also know what benefits exist or are created in the tax code for families or businesses. Finally, these professionals can offer consulting advice on how to best prepare or handle tax issues with the government.

Outsourcing tax work to an accountant will help to alleviate any stress that comes from filing taxes. Instead of frantically keeping up with new tax laws and codes, have an accountant work on the taxes.

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By financen | July 30, 2014 - 6:20 pm - Posted in Personal Finance, Tax

For some people, trying to do their taxes is just too complicated. Whether they own a business, have investment income or have a combination of both, trying to file the correct paperwork and getting everything right on a tax return may not be possible without the help of a professional.

Having a professional prepare a tax return may be beneficial because a professional has years of experience in dealing with tax laws and filing complicated returns. Instead of making mistakes that could cause an audit, your return will be filed without errors. Even if the government audits you, you can rest assured that the odds of the government finding that you owe additional money are not high.

Using tax preparation services such as the ones found at Quon & Associates can help you make sense of your tax situation and find ways to possibly lower your tax burden. If you are in Canada and owe United States tax, having a US tax Calgary professional in your corner makes it easier to determine how much you owe and when you need to pay that money by.

The government is going to get every dollar that it is owed. Therefore, it is in your best interest to file your return properly the first time. This may eliminate the odds of getting an audit and having to spend untold hours and a lot of money proving that you filed an accurate return.

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By financen | July 15, 2014 - 4:58 pm - Posted in IRS, Tax

Great_Seal_of_the_United_States_(obverse)When an individual is not paying taxes in accordance with the IRS tax laws, they use a program called penalty program. IRS tax penalties are placed on your account since you have not complied as per the rules of the IRS tax laws. The penalties are imposed so that you do not miss paying your taxes on time, according to proper filing procedures, and payment arrangements made. You can avoid paying penalties if you are filing your taxes properly.

  • Tax penalties review

If you miss paying taxes, you will be charged penalty on your tax account for some of the following reasons.

  1. You pay a penalty when you do not file your tax return within the due date. This will include the extension period given to you for filing taxes. It is necessary that you comply with the IRS otherwise they will charge you failure-to-file penalty. It cannot be more than 25% of the amount of taxes that you owe.
  2. You are required to pay a penalty when you have missed paying the penalty on your tax return in the past. This penalty is usually within 25% of your unpaid tax. However, if you can provide a good reason regarding why you were not able to pay the tax on time, chances are that you do not have to pay this penalty.IRS tax penalties
  3. The frivolous return is when you have to pay a penalty because your tax return does not show enough information to figure the correct tax or a tax return. This penalty is usually in addition to any other penalty that might be assessed to your account.
  4. If someone is neglecting paying the tax return, they will have to pay such penalties.
  5. The IRS tax agent should receive correct information from you about your identity and other information related to your taxes. If you fail to do you, you will have to pay a penalty for it.

If you have missed filing your taxes without any proper reasons, you will have to pay a small penalty. The penalties may vary depending upon the charge and in some cases will result in imprisonment. Therefore its very important to file your taxes on time.

Find other quality articles:

http://www.irs.gov/uac/Newsroom/Eight-Facts-on-Late-Filing-and-Late-Payment-Penalties

http://en.wikipedia.org/wiki/IRS_penalties

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By financen | January 3, 2013 - 4:16 pm - Posted in IRS, Laws, Tax

It is a fact that millions of taxpayers in USA are losing millions of dollars to the government because of erroneously prepared tax returns. This is mainly because of the ignorance on their part, or because of the ignorance or negligence of the professionals they have paid to prepare their tax return.

Tax

Tax

This incidence of ignorance has increased to such a magnitude that the IRS is forced to take action. From 2013, anyone who prepares tax returns for a fee, unless he is an attorney, CPA or enrolled agency, they have to be certified by the IRS. They will have to pass an IRS competency examination and a background check, before the certificate is issued to them.

Preparing your own income taxes is not at all that difficult as your tax professional might want you to think it like. There are many advanced tax preparation softwares available that has made preparing taxes so easy. You do not need any knowledge of tax laws to understand the process. This holds particularly true with the Turbo Tax Home and Business Tax preparation software, which has now gotten much better in the recent times. As it is not that expensive, it is virtually just as easy and effective to use this tax software as it will be used by a professional tax preparer.

There are many benefits of preparing taxes on your own. You do not need to disclose your sensitive personal information to any other person. It will reduce the risk of your personal information being compromised. Your never know how much your personal information is safe after leaving from the doorstep of your tax preparer. The IRS has found a huge increase in taxpayer identity theft in the last couple of years. That’s why they are always advising to consult with honest tax accountants with whom your personal information is safe and secure.

You can actually save a lot of money when you prepare your taxes on your own. Hiring an accountant can be quite costly and tax preparation fees can range from $300 and upwards for an average tax return with a Schedule A. When you file taxes on your own, you will have full control over it. You can take as much time to prepare your own taxes and do your own research to ensure optimum results.

It will also motivate you to look at your own finances and as you immerse yourself in the process, you gain more knowledge about tax matters and money management issues.

More information:

http://www.irs.gov/

http://en.wikipedia.org/wiki/Tax_law

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By financen | March 1, 2009 - 3:26 am - Posted in Tax

Many people face troubles in paying their IRS debts and the back taxes. If you have not been paying your taxes for a long time, the government can take your home, car or many other valuable things to recover the previous dues. If you are facing similar problems, it is time that you should look for some solutions now before it gets too late. You will find many sources on the internet that can help you fight against these problems or help to settle it.

If you have not been able to pay your tax debts for a long time, don’t wait for something bad to happen. Your best bet is to contact the IRS and explain them about your current financial situation and why you had not been able to make payments in the past. This will make things a lot easier on your behalf. You may apply for a penalty abatement which will eliminate all your previous penalties.


If you are applying for a penalty abatement, make sure that you show a very genuine reason of not been able to pay taxes. This can be in relation to death, illness, receiving false tax information, or anything that has been a financial detriment for you. Not paying the taxes in time has fatal consequences like your work payment will decrease and you will be deprived of any social security or disability benefits. More importantly, the tax debt is not going to go away by not paying it. The longer you postpone filing for your taxes, the tax payment is going to get bigger and added with penalties over the period of time. So make sure that you get rid of this federal/state debt as soon as possible.

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