THE PRIEST

The government has put target of achieving fiscal deficit of 4.15% by the end of this financial year. Road map for fiscal consolidation outlines fiscal deficit of 3.6 % for 2015-16 and 3 % for 2016-17. Budget has raised the personal income-tax exemption limit by Rs. 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit raised from Rs. 2.5 lakh to Rs. 3 lakh in the case of senior citizens. However there is no change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc. The budget proposes to continue education cess at 3 percent.  Investment limit under section 80C of the Income-tax Act has also been raised from Rs. 1 lakh to Rs. 1.5 lakh and Deduction limit on account of interest on loan in respect of self occupied house property raised from Rs.1.5 lakh to Rs.2 lakh. To incentivize small entrepreneurs an Investment allowance at the rate of 15 percent to a manufacturing c...

Taxes are financial charges imposed on individual or company by central or state government which the taxpayer is bound to pay by law. Failure to pay , evasion or resistance to collection is generally punishable by the law.Taxes collected by nation is used by government for various purpose including development of nation, welfare measures for the society, enforcement of law and order, maintaining defense system etc. Tax system can be broadly classified into two following types : Direct Tax : This type of tax is directly imposed in individual and directly paid to government. It is personal liability of the individual .In India it is controlled by Central Board of Direct Taxes (CBDT). Important direct taxes are as follow : Income Tax : It is the most known type of tax where by every individual who is earning above a threshold has to pay to government a certain percentage of his income. Wealth Tax : This is in addition to the income tax paid by individual. It is levied on net ...