1. Taxation What is Tax Charge made by the Government to the public to meet its expenses for the nation It can be on an individual It can be on a corporation

2. Direct and Indirect Tax Direct Taxes Tax paid by persons individually and the liability is ascertained Example : Income Tax,Wealth Tax,Corporate Tax Indirect Taxes - Paid on the total income for an year. The basis is income and not person.Ex.Excise Duty,Sales Tax,Service Tax

3. Principles Principles of Taxation Equity Progressive Adequacy Transparency Simplicity

4. Income Tax  Income Tax a) Salary b) Income from property c) Income from Business d) Capital gains e) Income from other Sources

5. Simple Terms Terminology - Assessor – A person who assess the income of another - Assessee – A person whose income is assessed - Financial Year- The financial year for which income tax is computed

6. Simple Terms Assessment year- It is the period in which the assessment is made. The Year succeeding the Financial Year Taxable Income- It is the income for which tax is calculated Allowances – The amount which can be deducted from the Income as mentioned in the Income Tax Act before the calculation of tax is made Rebates- The amount which can be deducted from the tax before payment

7. Tax Slabs Income Tax Rates (Males) 0-150000 - Nil 150000-300000 – 10% 300000-500000 - 20% Above 500000 - 30% * Education Cess @ 3%

8. Tax table for women Tax rates for Females 0-180000 - Nil 180000-300000 – 10% 300000-500000 - 20% Above 5 lacs - 30% Education Cess@3%

9. Tax table for senior citizens Income Tax Rates for Senior Citizens (Age65 and above) Upto 225000 - Nil 225000 – 300000 10% 300000 - 500000 20% Above 5 lacs 30% Education Cess @ 3%

10. Salary Tax components Salary includes Wages Annuity Gratuity Leave Encashment Amount Perquisites

11. Allowances Common Allowances from Income (Sec 10) Leave Travel Allowance House Rent Allowance Conveyance Allowance Special Allowance – Hill Uniform Education Allowance

12. Deductions Deductions from Income Allowances under Sec 10 Profession Tax ( Sec 16) Entertainment Allowance Interest on Housing Loan (Loss under Sec 24 of House property)

13. Deductions Deductions under Chapter VI A Mediclaim Insurance Premium (80D) Education Loan ( Sec 80E) Donations (Sec 80G) Premiums for physically Handicapped Dependants Scheme ( 80 DDA,80DDB) Physically Handicapped Person (80U)

14. Deductions Different form of Savings under Sec 80 C LIC Premium, LIC Pension Premium Contribution to ULIP NSC, Post Office Time Deposit, Senior Citizen Deposit Scheme Infrastructure bonds

15. Deductions Principal on Housing Loan Tution Fees paid for Children Contributions to PF Contribution to Superannuation Funds,Gratutity Funds PPF Scheme Bank Deposits (specified)