Such question is incomplete. However The normal exemption limit as follow Indiviual and huf: 250000 Senior citizen: 300000 Super senior citizen: 500000 As per section 87A, additional rebate of rs 2000 is allowed to all individual if taxable income is less than 500000.
Mainly there is: 1. Income tax 2. VAT 3. Excise duty (custom duty if imported) 4. Stamp duty on property deals 5 service tax Note : income tax rate for salaried person is progressive I.e. 0-2.5 lacs nil, 2.5-5 Lacs 10%, 5-10 Lacs 20%, 10 abv 30% ( taking avg 20% here) Vat 4% - 20% Excise duty - 14% (Normal rate) Service tax-14% Now, suppose u earn inr100 Then pay 20 incm tax Remains 80, spend them fully u pay 7.78 excise, 9.20 vat. So in majority: you paid inr37 as tax out of 100 rs salary and got something worth 63 rs. (63+7.78+9.20=80) (approximately)
Dear Kruthika, If you go through a detailed analysis, the list is very long. A normal salaried employee has not only to pay Income Tax but as well as other Indirect taxes such as Service Tax, VAT and some other taxes like Profession Tax, Property Tax, Entertainment Tax. As per Income TAx Act, 1961, a person is not need to pay Income Tax if his or her total annual income does not exceed Rs. 250000. The limit for Senior Citizen is Rs. 300000 whereas for Super Senior Citizens i.e persons who have attained the age of 80 years, it is Rs. 500000. Further an individual can take deductions from his/her income by investing their savings in various policies and instruments such as Life Insurance, PPF, NSC, etc u/s 80C of the I-T Act, 1961. Furhter an individual whose total income is not more than Rs. 500000 is given a rebate of an amount not exceeeding Rs. 2000 u/s 87A. This rebate facility is available only to Individuals and not HUFs. Hope I could answer your question. Thank You, Kushal Prasad
Dear Such question is incomplete. However The normal exemption limit as follow Indiviual and huf: 250000 Senior citizen: 300000 Super senior citizen: 500000 As per section 87A, additional rebate of rs 2000 is allowed to all individual if taxable income is less than 500000. As per the income tax act 1961, all the provision of income tax is applicable to all assessee i.e. no difference between salary person and businessmen. Any other query feel free to contact us Writer CA Chitranjan Agarwal