Basic Concepts INTRODUCTION Tax is today an important source of revenue for governments in all the countries. It has become inevitable imposition because it has great potentials for raising funds for meeting the development and defence needs of a nation. DIRECT AND INDIRECT TAXES •Direct Taxes: A tax which is born and paid directly by the person on whom it is impose is a direct tax e.g.‚ Income Tax‚ Wealth Tax‚ Gift Tax‚ etc. It is directly paid by the tax payer to the government without any intermediary
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000 account receivable from Green Corporation for $15‚000. During the year‚ James collected $17‚000 in final settlement of the account. James can take a $2‚000 bad debt deduction in the current year. True False 2. If a business debt previously deducted as partially worthless becomes totally worthless this year‚ only the amount not previously deducted can be deducted this year. True False 3. Last year‚ taxpayer had a $10‚000 nonbusiness bad debt. Taxpayer also had an $8‚000 short-term
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Definition of Gross Income‚ Taxable Income‚ and Net Income Gross income refers to all income but not excluding exempt income and subject to final income tax. Example of gross income include: salaries and wages‚ commission‚ sale of and other dealings in property‚ rents‚ dividends‚ and securities. Exclusion from gross income or those incomes that are exempted from tax include: life insurance proceeds paid to beneficiaries upon the death of the insured; compensation for injuries or sickness‚ retirement
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Individual Income Tax Return Last name 2011 OMB No. 1545-0074 IRS Use Only - Do not write or staple in this space. ‚ 20 For the year Jan. 1-Dec. 31‚ 2011‚ or other tax year beginning ‚ 2011‚ ending Your first name and initial Your social security number Heather If a joint return‚ spouse’s first name and initial Laubert Last name 584-11-3456 Spouse’s social security number Nikolay 123 main st Laubert Apt. no. 564-11-3457 Make sure the SSN(s) above and on
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CHAPTER 8 DEDUCTIONS FROM GROSS INCOME Problem 8 – 1 DEDUCTIBLE OR NONDEDUCTIBLE FROM GROSS INCOME |1. Deductible |11. Nondeductible | |2. Nondeductible |12. Deductible | |3. Nondeductible |13. Deductible
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corporate income tax) Under the CTRP‚ an MCIT equivalent to two percent (2%) of gross income is imposed beginning the fourth (4th) taxable year immediately following the taxable year in which such corporation started its business operations. The MCIT is imposed whenever such corporation has zero or negative taxable income or whenever the amount of the MCIT is greater than the regular corporate income tax due from such corporation. An MCIT equivalent to two (2%) of the gross income derived from sources
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Introduction This lesson deals with income‚ which falls under the head ‘Income from house property’. The scope of income charged under this head is defined by section 22 of the Income Tax Act and the computation of income falling under this head is governed by sections 23 to 27. All the provisions relating to tax treatment of income from house property are explained in this lesson. Objectives After going through this lesson‚ you will be able to understand: The meaning of house property
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measurement of nation income Classical and Keynes approaches nATIONAL INCOM E: ----The t otal sum of goods and services produced by t he people of a count ry wit h t he help of capit als and national resources called Nat ional Income (Prof. Alfred Marshall) We can define Nat ional Income as t he collective achievement of a nat ion. In t his way‚ t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley) Nat ional Income is t he basic concept of economic‚ which refers t
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Accounting vs. Economic Income Abstract This paper explores further into two different peer reviewed articles‚ and one chapter of an accounting book. These articles express the dynamics of accounting and its perspectives. It also equates for how they are determined and the usefulness of the income based on changes in the value of credits and liabilities. In addition‚ it expresses the need for education in both forms of income‚ and specific training required to truly understand the differences
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1.INTRODUCTION When we buy any kind of property for a lower price and then subsequently sell it at a higher price‚ we make a gain. The gain on sale of a capital asset is called capital gain. This gain is not a regular income like salary‚ or house rent. It is a one-time gain; in other words the capital gain is not recurring‚ i.e.‚ not occur again and again periodically. Opposite of gain is called loss; therefore‚ there can be a loss under the head capital gain. We are not using the term
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