LCM-MBA Seminar Tax Management

8/7/2019 LCM-MBA Seminar Tax Management

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Tax

Management


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TaxA charge or a sum of money levied onperson or property for the benefit of

state.

It is a payment to Government.

It is a kind or charge imposed by the

state upon the citizens.Profit = Revenue Expenses.


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Direct TaxesIncome Tax

Wealth Tax

Corporate TaxFringe Benefit Tax

Dividend Decision Tax


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Direct TaxesIt is levied on Income and Assets.

Tax Payer is tax Bearer.

Burden of tax cannot be shifted.

Slabs are applicable.

Tax planning avenues are available.

Regulated under Income Tax, Companies

Act, Partnership act.

It is collected and monitored by CBDT.


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Indirext Taxes Sales/ CST/ VAT

Excise

Customs Duty Service Tax

Entertainment Tax


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Indirext Taxes It is levied upon goods and services.

Tax payer is tax Bearer.

Burden of tax can be shifted.

There is no system of slabs No such

avenues is available.

Regulated under Sales Tax and Excise

Duty.

It is collected by Board of Excise and

Customs.


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Tax ManagementIt includes maintenance of records in prescribedformat.

It includes getting audited the records, filing

returns and pay taxes. Etc.It is a regular feature of business enterprises and

a form of tax planning.

Employees use CBDT (Central Board of Direct

Taxes).Employers use TDCAN (Tax deduction and

collection Account No).


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Aims Of Tax Management

Compliance with legal formalities.

Saving from penalties and prosecution.

Taking advantage of various tax incentivesand deductions.

Review of departments orders.


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AreasOf

Tax Management


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1. Deduction Of Tax At Source-:

It can be done with respect of income fromsalaries, winning from lottery, horse race,

etc.

Employer seek for TDCAN and employee forPan card.

TDS should be deposited in government

treasury.

Employer should furnish to the employee acertificate regarding TDS i.e.. Form 16.

Employer should furnish quarterly and annual

returns regarding TDS.


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2. Payment of tax-:

Advance payment of Tax.Tax on Self Assessment

Payment on Demand

3. Audit of accounts-:If business income exceeds 40 Lakh.

If individual income exceeds 10 Lakh


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3. Fulfillment of conditions to Claim

Deductions.

4. Furnishing Return of Income.

5. Documentation and Maintenance

of records.

6. Review of Orders.


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Tax AvoidanceAn art of dodging out i.e. actuallybreaking law.

Method of reducing tax incidence by

finding out loopholes of law.A device which technically satisfies

requirement of law but not in legal

accordance.It includes attempt to prevent or reduce tax

liability.


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Types of Tax Avoidance

An art of dodging out i.e. actuallybreaking law.

Method of reducing tax incidence by

finding out loopholes of law.A device which technically satisfies

requirement of law but not in legal

accordance.It includes attempt to prevent or reduce tax

liability.


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Tax Evasion

To reduce tax liability when accounts areinterpreted then it is Tax Evasion.

It is not only illegal but also immoral and

antinational.Under tax laws, tax evaders are penalized

by heavy duty


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Means of Tax Evasion

Falsification of Accounts.

Inflation of expenses.

Cautious violation of rules.Excessive payment of salary.

Non-disclose of capital gain.


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Assessment Year-:

The period of time in which the tax liability isassessed and the payment of Tax is made upon the

income earned in previous year is known as

Assessment Year

Previous Year-:It is the year in which income is earned.

Financial Year-:It is the year in which new tax laws are

prepared in the Finance Act are

implemented.

LCM-MBA Seminar Tax Management

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Transcript of LCM-MBA Seminar Tax Management