Is Sales Tax Charged For Photography Services Maryland

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Definition of Tax:

“Tax is an obligatory contribution (Financial accuse) from the Person (private, company, business firm, and others) to the regime to encounter the expenses incurred in the common interest of Society.”

“Tax is imposition financial charge which levied upon a taxpayer past Regime authorities for benefit of people in the country”

Basics of Taxation

Taxation plays a prominent role in the economical development of any country. Taxation is a system through which authorities raises or collect revenue from Public. Governments employ these revenues for the welfare of society in various forms similar paying salaries of soldiers and constabulary, Construction of dams and roads, to operate schools and hospitals, to provide nutrient to the poor and as well medical services, and for other purposes. Without taxes, any government could not be. Revenue enhancement can redistribute a higher grade guild’s wealth by imposing taxes on them in guild to maintain equality in society.

What do you understand by the term Tax?

In simple words, It is the part of our income which the Government collects from u.s. and provides several facilities like, water and drainage system, school facility, medical facilities, construction of roads and dams so on. Revenue enhancement is a compulsory payment or contribution levied by the government dominance on individuals or companies to meet the expenditure which is required for the welfare of social club.

Characteristics of Revenue enhancement:

It is a compulsory contribution.

  1. It is a contribution for the do good of society.
  2. It is a personal responsibleness.
  3. A tax is paid out of the total income of the taxpayer.
  4. A tax requires legal sanction.

Taxation structure (Indian Perspective)

In that location are mainly two directions of taxes

  1. Direct Taxation
  2. Indirect Tax

Directly Tax: “It is the tax, which is paid directly by the public to the government”

“The revenue enhancement whose brunt directly falls on the taxpayers or information technology is paid directly past a taxpayer to the respective authority.” Information technology cannot be shifted to others. E.m. Income tax.

Indirect Tax: “It is the tax, which is paid indirectly past people to the government.”

The burdens of tax indirectly autumn on the ultimate consumer are called every bit Indirect Tax. Due east.g. Service Taxation, These are the taxes that tin can’t be seen by ultimate consumers.

More often than not, Direct tax is over again divided into the following types:

a)      Income tax- As the name suggests itself it is a tax on the total income of the taxpayer.

b)      Wealth Tax- It is charged on the net wealth of the assessee

Generally, Indirect tax is again divided into the following types:

a)      Cardinal Excise Duty- Excise duty is levied on production or industry of appurtenances.

b)      Custom Duty- Custom duty is a duty which is levied by Central Govt. on import of goods and export of goods from India.

c)       Service tax- Information technology is a taxation levied on taxable services. generally, service provider pays tax and recovers from the consumer from the recipient of taxable service

d)      Value Added Tax (VAT) – VAT is a taxation on the sale of appurtenances within united states of america but. it is a multi-stage tax,  It is paid by the manufacturer, wholesaler, retailers and finally, it is on transferred on consumer

Deviation between Direct Tax and Indirect Tax

Basis Directly Tax Indirect Taxation
Definition Direct Tax is paid straight by the public to the government Indirect tax is paid indirectly by people to the government
Burden of tax The burden of taxation cannot be shifted to others. The burden of tax shifted to Ultimate consumer.
Tax Nerveless after the income for a year is earned At the fourth dimension of sale of purchases or  rendering of services
Example Income taxation Service tax

Basic terms in taxation


In unproblematic words, assessee means a Person past whom whatsoever tax or whatsoever other sum of money is payable is called assessee. East.grand. Mr. Shyam is liable to pay income tax so he is assessee. So any person who is liable to pay revenue enhancement or any sum of money under the Income Tax Act is chosen assessee.

 Assessment year-

Assessment yr means the period of twelve months starting on 1st April every yr and catastrophe on 31st March of the side by side year.E.g. The assessment year 2022-fifteen volition starts from 1st April 2022 then catamenia of 12 months and it ends on 31st March 2022

Previous year-

It is the financial twelvemonth immediately preceding the assessment year. In simply words, the year in which income is earned is known as the previous year. thousand. If any persons earns income let’due south say 2022 this is the previous year and information technology is taxable in adjacent year i.eastward. A.Y. 2022


The definition of income includes profits and gains from business, any winnings from lotteries, crossword puzzles, races and other, income received from dividends, capital gain from transfer of capital assets, any voluntary contributions received past a trust or scientific research association.


The definition of a person is in an inclusive manner.information technology includes-

  • An Individual. eastward.1000. Mr. Aakash
  • HUF ( Hindu Undivided Family).
  • Visitor.  e.1000. ABC Pvt. Ltd.
  • Partnership firm. e.thou. Grand/S A and associates.
  • An association of persons (AOP) or a Torso of Individuals (BOI).
  • Local Potency. eastward.g. Municipal Corporation.
  • Every Artificial Juridical person not falling within whatsoever of the above categories. Pune University.

Gross Total Income –

Full of five heads i.e. aggregate of Income from Salaries, Income from House Property, Profits and Gains from Business concern or Profession, income from Capital Gains, Income from Other Sources.

Total Income-

Gross total income less (minus) permissible deduction under department 80 to 80 U.

Income tax Slabs

The Income tax slab and rates applicable for the Fiscal Year (FY) 2022-14 and Cess Yr (AY) 2022-fifteen are mentioned below:

i. For Individual’s and HUF (Hindu Undivided Family)

Income (in Rupees) Taxation Percentage
0 to ii,00,000 No tax
2,00,001 to 5,00,000 ten%
v,00,001 to ten,00,000 20%
Above x,00,000 30%

2.Senior Denizen(Age lx-less than eighty)

Income (in Rupees) Tax Percentage
0 to 2,50,000 No revenue enhancement
2,00,001 to 5,00,000 10%
five,00,001 to 10,00,000 20%
Above 10,00,000 30%

iii.Very Senior Citizen(Age fourscore and higher up)

Income (in Rupees) Tax Percentage
0 to v,00,000 No tax
v,00,001 to 10,00,000 twenty%
In a higher place ten,00,000 30%

Revenue enhancement FAQ’due south

Who has to pay Income Tax?

A Person who’south earned Income in India, exceeds a prescribed limit or income slabs has to pay income tax

What happens if I don’t pay the Income Tax?

Any people who volition evade the payment of revenue enhancement, penalty or interest levied under Income Tax Act.

Who has to file the Income Tax Return?

Filing of Income Tax Return is compulsory if the taxable income exceeds the basic income tax exemption limit.

How can I (salaried Employee) pay the Income Taxation?

For Salaried Persons:

Income Tax can be paid on the ground of Class 16 Certificate, which is issued by his employer which contains the details of the salary received from the employer.

What are the various heads of Taxable Income?

In that location are 5 Heads of Income

a. Income from Salary

b. Income from House Property

c. Income from profits and gains of Business or Profession

d. Income from Capital gains

e. Income from Other Sources.

What is meant by Income tax Exemptions?

It ways a reduction from the taxable amount on which revenue enhancement will non exist paid.

What is a PAN?

PAN (Permanent Account Number) is a unique alphanumeric combination issued past Income tax Authority.

Who has to need to acquire PAN?

Every person, who is liable to pay the revenue enhancement required to obtain Permanent Account Number by making an application in class No 49A.

What is meant past TDS
(Tax Deduction at Source)

TDS (Revenue enhancement Deduction at Source) means the tax required to be paid by the Assessee, which is deducted by the person (please refer above definition) paying the income to him.


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