INCOME TAX NOTES Residential Status and Incidence of Tax According to Section 5 of the Income Tax Act the scope of total Income of an assessee depends on his residential status.On the basis of residential status assessee are classified under the following two categories: 1. Resident 2. Non-resident. As per as resident individuals and Hindu Undivided Families are concerned‚ they can be further divided into two categories: 1. Ordinarily Resident 2. Not ordinarily Resident. Residential
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Definition of Tax “Taxes are compulsory payment to government without expectation of direct return in benefit to the tax payer” According to section 2 (62) of the ITO (Income Tax Ordinance) 1984: “Tax means the income tax payable under ordinance and includes any additional tax‚ excess profit tax‚ penalty‚ interest‚ fees or other charges leviable or payable under this ordinance.” Characteristics of Tax i. Tax is a payment to the government by the people. ii. Payment of taxes is non-penal
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COURSE CODE: ACC325 (ASSIGNMENT) MATRIC NO: 09AA08569 TOPIC: ‘Income tax is one of the major sources of revenue for all government in Nigeria and it is a factor to be recon with in both the state and the Federal Government body….It is an enforced contribution of money enacted pursuant to legislative authority….Analyze the importance and the problems of TAXATION and the way forward in Nigeria………….’ INTRODUCTION Income taxes provide the largest single source of government revenues in most
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customers | Cash Collections | Process payments from customers | PBL Session 2 Question b: In expenditure cycle‚ the four activities conducted are ordering materials‚ supplies‚ and services‚ receiving materials‚ supplies‚ and services‚ processing invoices and cash disbursements. The table below shows the activities and the related actions to be conducted by company employees:- Expenditure cycle activities | Activity | Ordering Materials‚ Supplies‚ and Services | Send orders to supplier
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History Income tax levels in India were very high during 1950-1980‚ in 1970-71 there were 11 tax slabs with highest tax rate being 93.5% including surcharges. In 1973-74 highest rate was 97.5%. But to reduce tax evasion tax rates were reduced later on‚ by "1992-93" maximum tax rates were reduced to 40%. [2][3] [edit]Residential status‚ Scope of taxable income & Charge [edit]Charge to Income-tax Whose income exceeds the maximum amount‚ which is not chargeable to the income tax‚ is an assesse
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Case 5-1 Income Smoothing a. Firstly‚ investors tend to invest in companies with stable earnings rather than one with volatile earnings. With stable earnings‚ there will be more likely an issuance of dividends and investors could easily predict the company’s future earnings compared to one with unstable earnings. With consistent earnings generated‚ it gives investors a secured feeling that it will again generate earnings as predicted. Confidence in the growth of rate of earnings is crucial because
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PUBLIC EXPENDITURE AND ECONOMIC GROWTH WHAT IS PUBLIC EXPENDITURE? MEANING: Public expenditure refers to Government expenditure i.e. Government spending. It is incurred by Central‚ State and Local governments of a country. Spending by government ‚ municipality‚ or any local authority. It covers things such as health‚ education or social services and is funded by tax revenue. It is one of the element that make up aggregate expenditure. Government spending or government expenditure is classified
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Sport as a business Sports businesses generate substantial annual turnover. Many people participate in organised sports clubs‚ gyms and attend major sports events. The commercialisation of sport can be seen on the high street; well-known global sports brands have seen their products become fashion wear‚ and the tracksuit and trainers has become a ‘uniform’ for many groups around the world. Sports businesses are always planning for growth‚ and in the future there may be expansion in the availability
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Introduction The income smoothing literature has been the centre of attention in the accounting world for the past few decades. When companies experience economic turbulence due to a poor performance year‚ they turn to the accounting management department to resolve the bottom line. A strategy that managers can approach is changing the true information content of the company. As a result this has led managers to resort to smoothing their income. Many questions have been raised whether or not it
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AGRICULTURAL INCOME What is agricultural Income Section 2(1A) (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes; (b). any income derived from such land by agricultural or by the process employed to render the produce fit for market or by sale of such produce by a cultivator or receiver of rent-in-kind; (c). any income derived from a building provided following conditions are satisfied: - (i). The building is situated on or immediate
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