Who are the Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.
What is a nominee for tax purposes?
A “nominee” is someone who is given limited authority to act on behalf of an entity, usually for a limited period of time, and usually during the formation of the entity. The “principal officer, general partner,” etc., as defined by the IRS, is the true “responsible party” for the entity, instead of a nominee.
Who is liable to pay income tax in India?
Category – 1:- As per Indian Income Tax Act every person is liable to pay income tax whose income exceeds the basic exemption limit during any financial year. Theses persons includes the following for income tax purpose:- Association of Persons/Bodies of Individuals (Where the individual shares of the members are known.
When is a person liable to pay tax?
Association of Persons/Bodies of Individuals (Where the individual shares of the members are known. Association of Persons/Bodies of Individuals (Where share of the members are indeterminate or unknown.
How is the amount of tax paid under paragraph 1 treated?
The amount of tax under paragraph 1, which is paid for by the payer of income or by any other person on behalf of taxpayer on any category of income or in whichever tax year, shall be treated as income of the same category and of the same tax year as the income where payment of tax is made.
How is the amount of tax you have to pay calculated?
This is known as Pay As You Earn (PAYE). The amount of tax that you have to pay depends on the amount of the income that you earn and on your personal circumstances. There are a range of income tax reliefs available that can reduce the amount of tax that you have to pay.
