19/10/2021
Hi able fans,
👉What is business?
Business is what drives the economy in any market-based system. In addition to generating wealth for individuals, it funds the public sector of the economy through taxation.
👉Tax is levied on income from many sources:
Wages (selling labor)
Interest, dividends, and gains from investment (selling capital)
Self-employment (operating a business or selling a good or service)
Property rental.
Royalties (rental of intellectual property)
“Other” income such as alimony, gambling winnings,
🤹Payroll taxes:
for example, are commonly levied on labour income in order to finance retirement benefits, medical payments, and other social security programs—all of which are likely to benefit the taxpayer. Because of the likely link between taxes paid and benefits received, payroll taxes are sometimes called “contributions” (as in the United States). Nevertheless, the payments are commonly compulsory, and the link to benefits is sometimes quite weak. Another example of a tax that is linked to benefits received, if only loosely, is the use of taxes on motor fuels to finance the construction and maintenance of roads and highways, whose services can be enjoyed only by consuming taxed motor fuels.
🤹Purposes of taxation:
During the 19th century the prevalent idea was that taxes should serve mainly to finance the government e.g.
🤹Income tax:
Income tax is defined as money the government takes out of your earnings in order to pay for government operations and programs. Fifteen percent of your income deducted from your paycheck and paid to the government to maintain the military and social welfare programs is an example of income tax.
🤹Your income is from five broader sources, namely- salary, house property, business, capital gains (profit/loss) on investments and finally, other miscellaneous sources.
🤹Benefits available to individuals under the Income-tax Act.
One of them is:
Allowances paid in addition to salary, to meet specific expenses. Common allowances include dearness allowance (DA), house rent allowance (HRA), leave travel allowance (LTA), education, medical, transport etc. The most common one is HRA. If your CTC doesn’t contain HRA, deduction for rent paid is available from gross taxable income, subject to various limits (maximum deduction Rs 5,000 per month). If you live in a house you own, the HRA component is fully taxable.
🤹If you are working from home fulltime and your employer is reimbursing certain expenses such as telephone, internet, printing and stationery expenses you need not pay tax on these reimbursements.
🤹Now you may wonder what is CTC is simply means Cost to Company and It is calculated by adding salary to the cost of all additional benefits an employee receives during the service period. If an employee's salary is 500,000 and the company pays an additional 50,000 for their health insurance, the CTC is 550,000. Employees may not directly receive the CTC this is commonly used by some private sector and companies while making an offer of employment to show the total remuneration.
🤹While am saying all this is because some people think when they said to them do this business it will profit or benefit you, they think business is all about selling of Pepper or crefish. 🌶️🍤
🤹However,in the above write-up whether you like it or not government has established tax paying as his or her own business that will generate income for him/her and benefit people involved in some ways.
🤹So now, what business are planning to do that can generate income for you or you can benefit from. If I will suggest for you investment is also a good business you can do to gain interest or dividend from.
🤹So, invest your money and little time into E-credit cards and bill payment today and you will not regret it. Call on pat274real to create a wonderful VTU portal for you.
🤹Thank you.
