An income tax is a tax that governments levy on income generated by businesses and individuals depending on the level of earnings or gains during a financial year. By the government law, taxpayers must file an income tax return annually to determine their tax obligations. Income tax in India is calculated on the basis of tax rates determined by the government for an Assessment Year.
Income Tax planning is done for the purpose of availing maximum benefits of tax deductions, exemptions, rebates, allowances and concessions that are permissible under the Income Tax Act, 1961. Tax planning idea is to reduce the tax burden of the assets without breaking the government law.
Income tax filing is the process which take a lot of work which involves intelligence to avail the more benefits of tax deductions. Decades before income tax filing involved lot of paper work and because of that work force also needed to do that work. So finally the income tax filing needed money to spend. But now we provide income tax filing in an unbelievable cost.
Wealth tax is a tax imposed on the value of held assets. The intention of doing so is to bring parity amongst the taxpayers. Wealth tax is applicable to individuals, HUFs, and companies and also it is applicable to a variety of asset types including cash, bank deposits, shares, fixed assets, personal cars, assessed value of real property, pension plans, money funds, owner-occupied housing, and trusts.
