Income tax – Eshcinsel http://eshcinsel.net/ Fri, 20 May 2022 15:40:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://eshcinsel.net/wp-content/uploads/2021/10/icon-41-120x120.png Income tax – Eshcinsel http://eshcinsel.net/ 32 32 The essential basics of income tax in India https://eshcinsel.net/the-essential-basics-of-income-tax-in-india/ Fri, 20 May 2022 08:49:16 +0000 https://eshcinsel.net/the-essential-basics-of-income-tax-in-india/ Income tax is a levy imposed by the government on your total income. Whether you are an employee, self-employed or business owner, you will have to pay income tax depending on the category to which your income tax bracket belongs. It can be a daunting topic, and it’s no surprise that many of us don’t […]]]>

Income tax is a levy imposed by the government on your total income. Whether you are an employee, self-employed or business owner, you will have to pay income tax depending on the category to which your income tax bracket belongs.

It can be a daunting topic, and it’s no surprise that many of us don’t know much about it. Calculating your tax is trickier than it looks, and finding ways to lower your taxes through tax-saving schemes takes a lot of research – you can call it an art form.

This article details the basics of the income tax slab and explains what it is and how it is calculated. It also lists the different categories of tax saving schemes under which taxes can be classified. So be sure to read on.

What is meant by “previous year” in income tax jargon?

Your tax year lasts 12 months, beginning on April 1 and ending on March 31 of the following year. Whether you start your job in January or May, your tax year always ends on March 31 and a new one begins on April 1. This means that it is important to plan your annual tax expenditures.

What is the assessment year?

The valuation year is a term often heard in connection with the tax return. This is the next year after a previous year in which you will “contribute” and file your return for the previous year. Thus, the assessment year 2020-21 refers to the fiscal year 2019-2020 (i.e. from April 1, 2019 to March 31, 2020).

Section 80C tax savings schemes

You can save up to INR 1.5 lakh under Section 80C. Here are some tax saving plans you might consider:

Public provident fund

One of the most popular tax savings plan deductions claimed under Section 80C is deposits in a public provident fund account. When you open a PPF account, you must deposit a minimum of INR 500 and a maximum of INR 1.50,000 per year. Money deposited into a PPF account is compounded at an interest rate of 8% per annum as you deposit more money in subsequent years to claim deductions. A PPF account can be easily opened with the help of banks.

Fixed rate term deposits

You can protect your capital while enjoying a return by investing in term deposits. If the interest income is taxable, you will have to keep the money invested for at least 5 years to benefit from the tax advantages provided for in article 80C of the income tax slab.

Equity Linked Savings Plans

ELSS, one of the few mutual fund tax-saving plans permitted under Section 80C, has recently gained popularity among investors as its historical performance has outperformed other tax-saving plans. tax available. On top of that, it also has a lock-in period of just 3 years, making it one of the most popular options to save money on taxes.

Withholding Tax (TDS) – What does it mean?

Tax withheld at source (TDS) is the amount of income tax that is deducted at source from the payment. The payer must deduct an amount of tax according to the rules prescribed by the service of income tax slab. If you earn interest on a fixed deposit, the bank also deducts part of your interest as taxes. Since the bank does not know your income tax platethey usually deduct TDS @ 10% unless you haven’t mentioned your PAN.

Income you have to pay tax on

In addition to your salary, you are also required as an individual to pay taxes on the income generated by your deposits and savings with banks or any other financial institution. Here is a complete list of the sources of income on which you must pay taxes:

  • Wage income – This includes income from sources such as your job, allowance, vacation cash, or any other cash item you receive for providing services to an organization.
  • Income from home ownership – This is the income generated from renting out a property that you own.
  • Capital gains income – This includes any income generated from transactions you make in fixed assets such as mutual funds or stocks.
  • Business or professional income – As the name suggests, if you conduct business processes in addition to your job, you must pay taxes on the income generated through this.
  • Income from other sources – This includes interest income accrued in savings accounts, bank deposits, gifts, etc.

What are tax returns?

People who earn money are legally required to file a tax return. Even if your income is below the tax bracket, you must file your return. Tax returns are filled out with forms that tell the government how much money you earned that year and how much tax was withheld.

The income tax slab department in India has made tax payment easier and more convenient for individuals and businesses. Individuals can pay their taxes online or file their tax returns, and businesses can track their tax payment history on several useful websites these days.

By paying income tax, you help fund the creation of important national infrastructure and improvements for the government. Your tax dollars support many services, including public transit, community infrastructure, and law enforcement.

Conclusion

Although calculating your income tax at first glance may seem like a daunting task, by understanding the different tax saving schemes you can be assured that your taxes are calculated correctly. This can help you avoid fines and penalties later when you need to file your taxes.

By following the steps above, in addition to noting the specific laws that apply to your own situation, you will know how to calculate your taxes and how they relate to the law in India.

Overall, it’s important to remember that understanding the basics of income tax brackets will help you make smart financial decisions in the future.

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Your questions – Income tax: NRIs can claim benefits under tax treaties https://eshcinsel.net/your-questions-income-tax-nris-can-claim-benefits-under-tax-treaties/ Wed, 18 May 2022 00:00:00 +0000 https://eshcinsel.net/your-questions-income-tax-nris-can-claim-benefits-under-tax-treaties/ By Chirag Nangia I have been working in Zambia since 2000 and send my salary to my NRE account in India. Is it taxable in India? If it is taxable, in which section should I indicate it when filing the computerized declaration?—RajaIt has been held in various court decisions that the mere collection of salary […]]]>

By Chirag Nangia

I have been working in Zambia since 2000 and send my salary to my NRE account in India. Is it taxable in India? If it is taxable, in which section should I indicate it when filing the computerized declaration?
—Raja

It has been held in various court decisions that the mere collection of salary by NRI into his Indian NRE account for services performed outside India is not taxable in India. Additionally, interest earned by NRIs on these NRE accounts is also tax-free. NRIs earning income in the form of salary and interest, exceeding Rs 2,50,000 are required to provide income tax return in ITR-2 form. However, NRIs can claim benefits under tax treaties and claim refunds if TDS is deducted from their income. For this, you must reconcile the TDS credit and the withholding tax as indicated in the 26AS form.

I bought a dwelling house in 1982 for Rs 55,000. I spent Rs 4 lakh in 1991 to remodel and build the first floor. I sold the house for Rs 70,87,000 on 27th November 2021. How can I claim long term capital gains tax relief. I paid Rs 70,870 as transaction tax. I invested the money in an apartment under construction.
—Mr Hanumantha Rao

For the calculation of the capital gain on the sale of a property, since you purchased the property, the acquisition cost must be the greater of the actual cost or the FMV on April 1, 2001, which is indexed to take into account inflation and any improvement costs incurred before April 1, 2001 are ignored. In addition, if the net consideration resulting from the sale is invested for the purchase of a residential house (one year before or within 2 years from the date of the transfer) or for the construction of a residential dwelling (in 3 years from the date of the transfer), then proportionately the capital gains are exempt under section 54F. This exemption is permitted if an assessee does not own more than one dwelling house on the date of the transfer. The LTCG thus calculated is taxable at 20%, plus a deductible of 4%. Additionally, the tax you pay is TDS pursuant to IA Section 194, which requires tax @ 1% to be deducted by the purchaser of the property at the time of payment of the consideration for the sale.

The screenwriter is the director, Nangia Andersen LLP. Send your questions to fepersonalfinance@expressindia.com

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Sena chief Yashwant Jadhav’s cup of woes overflows with income tax department expanding property list https://eshcinsel.net/sena-chief-yashwant-jadhavs-cup-of-woes-overflows-with-income-tax-department-expanding-property-list/ Sat, 14 May 2022 17:34:21 +0000 https://eshcinsel.net/sena-chief-yashwant-jadhavs-cup-of-woes-overflows-with-income-tax-department-expanding-property-list/ Shiv Sena leader and BMC Standing Committee Chairman Yashwant Jadhav is overflowing with the Income Tax (IT) Department expanding the list of properties acquired during the Covid19 pandemic lockdown from 36 to 56, with jewelry purchased with Rs 6 crore cash. Computer sleuths had identified 36 Yashwant Jadhav properties in the first phase of the […]]]>

Shiv Sena leader and BMC Standing Committee Chairman Yashwant Jadhav is overflowing with the Income Tax (IT) Department expanding the list of properties acquired during the Covid19 pandemic lockdown from 36 to 56, with jewelry purchased with Rs 6 crore cash.

Computer sleuths had identified 36 Yashwant Jadhav properties in the first phase of the investigation which has now grown to 56 of which 41 properties have been provisionally attached under Section 132(9)B of the Income Tax Act Income. Adjoining properties include 31 apartments in the Bilkhadi Chamber Building in Byculla where Jadhav lives, an apartment worth Rs 5 crore in Bandra and the Crown Imperial Hotel in Byculla.

“It is suspected that the acquisition of all assets took place while Yashwant Jadhav was the Chairman of the Standing Committee of BMC. All adjoining properties are registered in the name of Yashwant Jadhav, his family members and close associates” , informed an IT official involved in the investigation.

During 4 days of searches at the residence and offices of Yashwant Jadhav in February this year, IT officials seized several property documents, suspicious book entries for cash payments and expensive gifts – a wrist watch. worth Rs 50 lakh to Matoshree and gifts of Rs 2 crore to Matoshree for Gudi Padwa. Jadhav claimed that the entries referred to his mother as ‘Matoshree’ and distributed watches on his mother’s birthday and similarly distributed gifts worth Rs 2 crores on behalf of his mother on Gudi Padwa.

The IT department recorded the statements of the jeweler who was paid Rs 6 crore for gold jewelery and the statement of tenants paid Rs 1.15 crore in cash to buy the three-bedroom property in the building where Jadhav lived .

IT summoned Yashwant Jadhav’s close associates, Vilas Mohite and Vineet Jadhav, to record their statements, which they both repeatedly ignored. While Vilas Mohite oversaw the work of Yashwant Jadhav’s BMC, Vineet Jadhav was a director of BMC entrepreneur Bimal Aggarwal’s Newshawk Multimedia Pvt Ltd. . Jadhav is believed to have favored Agarwal for various BMC deals worth Rs 30 crores.

Jadhav via Newshawk Multimedia is said to have purchased 31 apartments in Bilakadi’s rooms. Jadhav reportedly paid four to five tenants in the building in cash and each was paid between 30 and 35 lakhs. There are 40 other properties under investigation that are suspected of being linked to Jadhav. Some payments were made to tenants through overseas hawala channels.

The Crown Imperial hotel acquired by Jadhav was also taken on lease by Newshawk Multimedia and then secured a contract from BMC for the quarantine center. The hotel was reportedly purchased for Rs 1.75 crores but was later sold within a year for over Rs 20 crores.

The initial investigation into the affidavit filed by Yeshwant Jadhav’s wife, Yamini, Shiv Sena MLA of Byculla, had shed light on dealings with a front company of Kolkata Pradhan Dealers Pvt Ltd. Around Rs, 15 crore was received from Pradhan Dealers which was then invested in a building in Byculla and the Jadhav family returned the money to Pradhan Dealers. The same funds were then transferred to Newshawk Multimedia. The Mumbai Registrar of Companies has also filed a complaint with Marine Drive Police Station asking to register a complaint against Pradhan Dealers and its directors.

IT requested information from BMC regarding contracts approved by the Standing Committee from April 2018 to date, when Jadhav was the chairman, as well as details of all sub-contractors, were sought and payments were made to them. been paid by BMC.

Yashwant Jadhav and his wife Yamini remained unavailable to comment on the IT cases against them.

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Posted: Saturday, May 14, 2022, 11:04 PM IST

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UAE: Ministry of Finance consultation paper on corporation tax https://eshcinsel.net/uae-ministry-of-finance-consultation-paper-on-corporation-tax/ Thu, 12 May 2022 10:02:53 +0000 https://eshcinsel.net/uae-ministry-of-finance-consultation-paper-on-corporation-tax/ After the announcement of the introduction of a federal corporate income tax in the UAE (“ICT”) on January 31, 2022, the United Arab Emirates Ministry of Finance (“Ministry of Finance”) recently published a public consultation document on the CIT on its website with the possibility of submit comments until May 19, 2022. This legal briefing […]]]>

After the announcement of the introduction of a federal corporate income tax in the UAE (“ICT”) on January 31, 2022, the United Arab Emirates Ministry of Finance (“Ministry of Finance”) recently published a public consultation document on the CIT on its website with the possibility of submit comments until May 19, 2022. This legal briefing examines the most important points included in the consultation document and their potential practical impact.

I. General

From June 1, 2023, taxable persons will be subject to a corporation tax of 9% on their taxable income. Although the Ministry of Finance has already compiled important information on the applicability of the CIT on its website, some topics have remained open or unclear.

The Department of Finance’s consultation document now addresses important points in more detail. However, due to the nature of the document, this information (as described herein) may be subject to further change.

II. Details

IS at the rate of 9% will be applicable to resident taxable persons on their taxable income.

1. Taxable persons

a. General rule

In general, the CIT will be applicable to companies and other legal persons incorporated in the UAE as well as foreign companies with a permanent establishment (“PE”) in the UAE or income from the UAE. This means that the following companies will be subject to IS:

  • limited liability companies
  • stock companies
  • free zone companies
  • branches of foreign companies
  • civil partnerships
  • only establishments
  • limited liability companies
  • partnerships limited by shares.

It should be noted that individual establishments and civil partnerships will not be taxed at the level of the company but rather at the level of the associates / associates.

As a general rule, it can be said that any legal person – regardless of its legal form – holding a license or permit issued by a Ministry of Economic Development or a Free Zone Authority to conduct business in the UAE or in a free zone, will be subject to corporation tax.

b. Exemptions

The following legal entities will be exempt from corporate tax:

  • governments and their departments and institutions at federal and emirate level
  • wholly government-owned companies (to be listed in a respective cabinet decision)
  • charities and public benefit organizations (to be listed in a respective cabinet decision)
  • companies engaged in the extraction and exploitation of the UAE’s natural resources
  • social security funds and regulated public and private pension funds
  • Investment Funds.

vs. Free zone companies

In general, free zone companies (including branches of foreign companies incorporated in a free zone) are subject to corporation tax. However, the Ministry of Finance has decided to honor the existing tax incentives offered to companies in the free zone.

This means that under certain conditions, companies in the free zone will benefit from a 0% corporate tax rate on the following transactions:

  • transactions with companies located outside the UAE
  • transactions with companies located in the same or another free zone
  • passive income from activities in the UAE mainland (e.g. interest, royalties, dividends, capital gains)
  • transactions with group companies on the mainland of the United Arab Emirates.

Companies in the free zone will, however, be subject to the standard corporate tax rate of 9% on all transactions with companies in the mainland of the United Arab Emirates. The same applies to income generated by branches of free zone companies established on the mainland of the United Arab Emirates.

Notwithstanding the foregoing, companies in the free zone can choose to be subject to the normal rate of corporate tax at any time. Once such a choice has been made, it cannot be reversed.

In addition, it should be noted that companies in the free zone wishing to benefit from the 0% rate of corporate tax must prepare audited financial statements.

D. Residence and permanent establishment (EP)

In principle, only taxable persons residing in the UAE are subject to the UAE CIT. This means that any legal person incorporated in the UAE (and actually holding a license issued in the UAE) is considered a resident of the UAE.

However, there are two main exceptions to this principle:

  • foreign companies effectively managed and controlled in the UAE (i.e. major management and business decisions are made in the UAE);
  • Permanent establishments.

The Ministry of Finance will follow internationally accepted principles for determining a PE, as set out in Art. 5 of the OECD Model Tax Convention.

A PE can be established either through a fixed place of business (e.g. a branch, office, factory, workshop or property from which business activities are carried on for more than 6 months ) or a dependent agent who enters into contracts on behalf of the foreign enterprise PE.

2. Taxable income

Taxable income will be determined on the basis of the accounting net profit as shown in the financial statements and calculated in accordance with internationally accepted accounting standards.

Passive income such as dividends received from subsidiaries and capital gains from the sale of shares of subsidiaries (subject to certain conditions) will be exempt from corporation tax and will not be taken into account in the calculation taxable income.

Profits of foreign branches (of companies based in the UAE) can be accounted for in two forms:

  • claim a tax credit if taxes have been paid in the host country; or
  • claim a tax exemption for the profits of a foreign branch.

A foreign branch profit tax exemption can only be claimed for all branches of a UAE company (not just certain branches) and cannot be reversed.

3. Administration

The UAE Federal Revenue Authority will be responsible for the administration, collection and enforcement of the CIT. According to the consultation document, a new registration for CIT will be required. This means that companies will also receive another tax registration number for the CIT. It is not known whether the existing VAT portal will be extended or not.

Each business only needs to prepare one tax return. Submission and payment of the CIT must be made within 9 months of the end of the respective tax period (i.e., for companies with a financial year ending on December 31, the deadline for submission and payment would be September 30).

III. Summary and Recommendations

The consultation document published by the MoF provides more detailed information on some topics that have been mentioned on the MoF website in the form of FAQs.

Due to the nature of the consultation document, it remains to be seen whether the final corporate tax law will adopt the principles set out in the consultation document without further modification or whether certain provisions will be completely modified.

In any case, as more light has been shed on free zone companies and the applicability of corporation tax to them, companies are advised to reassess their business models and facilities in the UAE and whether they remain profitable under the new corporate tax regime. In addition, companies in the free zone may need to implement additional accounting procedures and principles in order to benefit from the corporate tax exemption.

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Income tax filing deadline is approaching https://eshcinsel.net/income-tax-filing-deadline-is-approaching/ Wed, 11 May 2022 06:13:50 +0000 https://eshcinsel.net/income-tax-filing-deadline-is-approaching/ It’s May again, which means the deadline for submitting our annual tax return is fast approaching. Avoid sticking to the last minute – if you are earning income from various sources and/or from abroad, it can sometimes get a bit complicated. This is therefore an opportunity to look at the taxation of income in France. […]]]>

It’s May again, which means the deadline for submitting our annual tax return is fast approaching.

Avoid sticking to the last minute – if you are earning income from various sources and/or from abroad, it can sometimes get a bit complicated.

This is therefore an opportunity to look at the taxation of income in France.

While the UK and France impose income tax, they do not operate in the same way.

Carefully follow local rules and the France/UK double tax treaty, both when submitting your tax returns and for your tax planning arrangements in general.

There are three forms of income tax:

  1. Scale income tax (on earnings, pension income, rental income)
  2. Social charges
  3. A fixed rate on investment income and gains

Income tax rate

The tax brackets and scales of net income collected in 2021 are as follows:

Up to €10,225 – none;

€10,226 to €26,070 – 11%;

€26,071 to €74,545 – 30%;

€74,546 to €160,336 – 41%;

Over €160,336 – 45%.

Incomes above €250,000 and €500,000 may be subject to a 3% or 4% supplement, depending on whether you are a single taxpayer or a family.

Tax allowances and credits

People aged over 65, or holders of a disability card, or holders of a military pension or an accident at work (minimum 40%) are entitled to an allowance of €2,484 for income up to €15,560, and €1,242 for income between €15,561 and €25,040.

While retirement and disability pensions, alimony and alimony are taxed like wages, the taxable base benefits from a 10% allowance, with a minimum of €400 and a maximum of €3,912 per home for 2021 income.

Various tax credits are available which are deductible from actual tax payable (not income).

The rules can be complicated, so ask your accountant to determine what credits are available for your situation.

PAID

The French pay-as-you-go system only started in 2019 and was a complex tax reform.

Income subject to PAYE includes employment income; taxable state benefits; pensions and life annuities; non-French income taxable in France; rental income; and business profits.

Income excluded from the PAYE system includes investment income; capital gains from disposal of property and capital investments; and non-French income subject to French tax credit under a double tax treaty.

Household/parts system in France

That’s a big difference with the UK.

In France, income tax is levied on all household income (including minors), and not on individuals or spouses.

This can be very beneficial for some families with a member earning a high income (within certain limits).

To avoid higher tax rates, the family is divided into several family rooms.

The total income is then divided by the number of shares and the income tax rates applied to this lower figure.

The calculated income tax due is then multiplied by the parts to provide a larger number.

The number of shares depends on the family situation and dependent children.

For example, a married couple’s income would be divided into two parts, with an additional half part for each of the first two children and a full part for the third and subsequent children.

Social charges

This is another big change from the UK.

Social charges are levied on all forms of income and are in addition to income tax or social security contributions paid by the self-employed for their health care and pensions etc.

They are composed of six elements, which amount to the following charges:

Income from work (salaries, unemployment benefits) – 9.7%;

Pensions (retirement or invalidity) – up to 9.1% (only on foreign pensions if you are subject to the French health system. British pensioners with the S1 form for their health care therefore escape this charge);

Unearned/investment income (interest, capital gains, annuities, rental income, etc.) – 17.2% (this is reduced to 7.5% if you are covered by another country’s healthcare system from the EU/EEA or the UK, eg UK pensioners with an S1).

Your payroll taxes are usually calculated based on the income reported on your tax return.

The French authorities will notify you of the amount due in the fall, as well as your request for income tax liability.

Investment income tax

Investment income is currently taxed at a flat rate of 30% rather than the income tax schedule rates.

This includes both tax and social charges, which is advantageous for higher investment income.

Low-income households can opt for the progressive scale of income tax (plus social charges).

Unless you are a low-income household, you must declare interest or dividends received from abroad within 15 days of the end of the month and pay the 30% tax.

UK income

French tax residents are subject to local tax on worldwide income and gains, so you must declare all income outside of France.

However, you do not pay double tax on income taxed in the UK.

Under the terms of the Double Taxation Treaty, pension and rental income from UK utilities are only taxable in the UK.

However, you must still declare this income on your French income tax return (you will benefit from a credit equal to the French income tax and social charges on income).

France may be only a step away from the UK, but its tax system may seem a world apart.

You need to understand how it works and follow the rules correctly, so take professional advice.

Tax rates, coverage and reliefs may change. All statements regarding taxation are based on our, Blevins Franks, understanding of current tax laws and practices which are subject to change. Tax information has been summarized; an individual is advised to seek personalized advice.

Related Articles

Checklist: Income tax in France 2022 (for 2021 income)

Do I have to file a French tax return if I only receive a British police pension?

How to find and download the French income tax declaration form?

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Income Tax: Should I Advertise for a Maternal Health Fund? – 05/10/2022 https://eshcinsel.net/income-tax-should-i-advertise-for-a-maternal-health-fund-05-10-2022/ Tue, 10 May 2022 20:10:35 +0000 https://eshcinsel.net/income-tax-should-i-advertise-for-a-maternal-health-fund-05-10-2022/ I pay for my mother’s health insurance. The invoice is in my name. Can I deduct these expenses? (NBC) As an insured person, you cannot deduct amounts related to your mother if you declare it separately. Your mother can be considered a dependent if, in 2021, she has an income, taxable or not, of R$22,847.76. […]]]>

I pay for my mother’s health insurance. The invoice is in my name. Can I deduct these expenses? (NBC)

As an insured person, you cannot deduct amounts related to your mother if you declare it separately. Your mother can be considered a dependent if, in 2021, she has an income, taxable or not, of R$22,847.76. If your mother chooses to file it separately, she will be able to deduct health insurance costs for her part. Thus, until the declaration is made separately, everyone can declare in their declaration the share in the HMO that suits them, depending on the proof provided by the operator.

My health plan is linked to my parents’ plan (I no longer rely on it and declare it separately). In the plan report, the expenses are detailed with each beneficiary. Can I report these expenses on my IR? (RPP)

As a health insurance plan holder, your relative cannot deduct amounts related to your share, as you show separately. You can only deduct your share of the health plan, as detailed in the income statement provided by the operator.

The source: BIO . Consultant

Delivery time Income tax The year 2022 ends on May 31 at 11:59 p.m. A total of 34.1 million permits are expected. Anyone who is obliged to announce the delay and the lack pays a fine of at least R$165.74, which can go up to 20% of the tax due in the year.

For those who have taxes to pay, the individual quota or the first payment expires on May 31. It is possible to pay the IR in installments of up to eight times.

Check out the payment schedule for 2022:

quota due date
the first one May 31st
The second 30 / jeans
the third July 29
the fourth August 31
Fifth 30 / September
VII October 31
seventh November / 30
VII December 29

Who should announce the GO program in 2022:

  • Workers, retirees and employees with taxable income over R$28,559.70 in 2021
  • which were exempt, non-taxable or exclusively taxable from source income above R$40,000 in 2021, which includes FGTS (Fundo de Garantia do Tempo de Serviço) and unemployment insurance, for example
  • Those who had assets and rights of more than 300,000 Brazilian riyals as of 12/31/2021
  • The taxpayer who carried out a stock market transaction in 2021
  • Who moved to Brazil and was here on 12/31/2021
  • A taxpayer who elected to exempt income tax on the capital gain (gain) from the sale of residential property whose value was applied to the purchase of another property in the state, within 180 days following the sale
  • Whose total income from rural activities is greater than BRL 142,798.50 or wants to compensate for losses in this area

]]> Wyoming leaders discuss property tax increases after failed income tax proposal https://eshcinsel.net/wyoming-leaders-discuss-property-tax-increases-after-failed-income-tax-proposal/ Tue, 10 May 2022 00:53:00 +0000 https://eshcinsel.net/wyoming-leaders-discuss-property-tax-increases-after-failed-income-tax-proposal/ WYOMING, MI — Wyoming city leaders are considering several different property tax increase options to offer voters to fund approximately $6 million in annual public safety and parks needs. The discussion in the Wyoming City Council on Monday, May 9 came a week after voters on May 3 rejected a possible funding solution that called […]]]>

WYOMING, MI — Wyoming city leaders are considering several different property tax increase options to offer voters to fund approximately $6 million in annual public safety and parks needs.

The discussion in the Wyoming City Council on Monday, May 9 came a week after voters on May 3 rejected a possible funding solution that called for instituting an income tax but cutting property taxes in half.

During Monday’s business session, Wyoming city staff presented the council with three potential property tax increase options that the public body could bring to the November 2022 or May 2023 ballot.

There was no consensus among elected leaders on which of the three options to offer voters and on which ballot. City Council is expected to take up the issue at its meeting on Monday, May 16.

The income tax proposal failed on May 3 by a vote of 6,055 to 2,823, or 68.2% to 31.8%, according to official results from the Kent County Clerk’s Office.

It reportedly generated about $6 million in annual revenue and was used to hire 27 firefighters for the department that city officials described as understaffed and overworked, hire 13 additional police officers to enable a job of more proactive public safety and invest in repairs and replacements. in the aging park system, city officials previously said.

Related: Property tax hike, service cuts could be on the table after Wyoming income tax proposal is overturned

On May 3, Wyoming voters also narrowly approved a Wyoming public school bond proposal that will not raise taxes as well as a proposal that would have lowered property taxes if the property tax measure income was adopted.

“To me that means that people are hardly willing to maintain the same taxes and that’s a challenge that this body is going to have to overcome because soon we’re going to be asked to do the same or more with less.” -High Council Member John Fitzgerald said of the election results.

Related: Wyoming income tax plan would hurt competitiveness, business community says

The first two options presented to elected leaders call for funding some degree of public safety needs without additional funding for parks.

The first option would generate approximately $2.32 million annually for the fire and police departments and allow the City to fund the positions they currently have, including approximately 17 acting police and firefighter positions hired over the course of of the last year. Currently, six of these positions have funding over the next three years, but 11 do not.

The option would increase the current tax rate by approximately 8%, from 11.7404 mills to 12.6482 mills.

The dollars would allow the city to keep the additional interim police and fire stations. However, it would not provide enough staff for the city to reopen two of its four fire stations that were closed due to understaffing.

The second option would raise taxes by about 18%, from 11.7404 to 13.8464 mills, and generate about $5.38 million more per year for police and firefighters.

This tax increase would be sufficient to cover all the needs identified in the police and fire services and allow the services to retain acting positions and hire more of them.

However, this would not provide additional funds for the parks. The third option would be.

Under the third option, the taxes would be increased by approximately 20%, from 11.7404 mills to 14.081 mills.

The increase would generate $5.38 million for public safety as well as $600,000 for capital investments in parks. It would cover all the needs identified by the city.

Some council members have expressed concern about putting another tax hike measure back in front of voters in November after so recently rejecting the income tax proposal. They preferred to put the article on the May 2023 ballot.

Regardless of whether a tax proposal makes it to the November or May ballot, it would come into effect in the summer of 2023 if passed.

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Avon mayor still hopes to preserve future parks, despite income tax failure https://eshcinsel.net/avon-mayor-still-hopes-to-preserve-future-parks-despite-income-tax-failure/ Mon, 09 May 2022 18:15:00 +0000 https://eshcinsel.net/avon-mayor-still-hopes-to-preserve-future-parks-despite-income-tax-failure/ AVON, Ohio — Mayor Bryan Jensen remains hopeful the city will be able to preserve land for future parks, even as voters on May 3 rejected an income tax hike that would have paved the way to this future. The city was seeking a 0.15% increase in income tax to be used for park development […]]]>

AVON, Ohio — Mayor Bryan Jensen remains hopeful the city will be able to preserve land for future parks, even as voters on May 3 rejected an income tax hike that would have paved the way to this future.

The city was seeking a 0.15% increase in income tax to be used for park development over the next 10 years.

The plan was developed in response to residents asking the mayor to halt the growing number of residential developments in the city. Jensen said buying a property now to use later as a park could be a stopgap to overdevelopment.

But it was not to be.

“I was hoping it would pass,” Jensen said of the income tax. “There are plenty of opportunities to get parks that may not be available later.”

The election results were 1,721 votes for the tax and 2,223 against, according to final, unofficial results from the Lorain County Board of Elections.

Jensen speculated on why the ballot issue might have failed.

“One thought is that we’re not in a great place with the economy,” he said. “There is some price scare, and we thought more people wanted us to preserve the property. Now it looks like we will have to be more selective and creative in making purchases.

“My goal is always to preserve as much land as possible, because once the houses are built, the opportunity is lost.

And after?

“We will continue to work as we have done,” he said. “Are we going to put the levy back on the ballots? If enough people got together and asked for another levy and said they would promote it, then maybe. Other than that, however, he may not return at all.

“The people have spoken. But it would have been nice to work with the land, because they don’t do anything with it anymore.

Learn more about the Sentinel of the sun.

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New income tax system: is the reduced tax rate option right for you? https://eshcinsel.net/new-income-tax-system-is-the-reduced-tax-rate-option-right-for-you/ Sat, 07 May 2022 03:41:56 +0000 https://eshcinsel.net/new-income-tax-system-is-the-reduced-tax-rate-option-right-for-you/ There is a lot of confusion about the new tax regime. People are not able to decide which one to go for. The new tax regime is available only to individuals as well as to a HUF whether you are resident or non-resident and is optional. The new tax regime gives you preferential rates up […]]]>

There is a lot of confusion about the new tax regime. People are not able to decide which one to go for. The new tax regime is available only to individuals as well as to a HUF whether you are resident or non-resident and is optional. The new tax regime gives you preferential rates up to a total taxable income of Rs. 15 lakhs with tax brackets of 5%, 10%, 15%, 20% and 25% on income brackets progressing by 2 .50 lakhs from basic exemption of Rs. 2.50 lakhs. In the event that one wishes to take advantage of the reduced rates of tax slabs under the new tax regime in place of the existing tax slabs, one must waive various tax deductions and exemptions available under the old tax regime. .

As for employees, they are not entitled to major benefits such as lump sum deduction, housing allowance, travel leave assistance, etc. if they opt for the new tax regime. The retired elderly person will not be able to claim the standard pension deduction from the former employer as well as the post and bank interest deduction u/s 80TTB if you opt for the new tax regime.

In addition, various deductions under Chapter VIA as well as Section 80 C (composed of various items such as EPF, LIP, tuition, PPF, NSC, ELSS, home loan repayment, etc.), 80 CCD (1 ) and 80 CCD (1B) (for NPS) 80D (for health insurance premiums) 80 D for mediclaim, 80 G for donations, 80TTA for savings bank account interest, etc. will also not be available to taxpayers.

If you have borrowed money to buy a house or to repair the house which you claim to be self-employed, you are not eligible for the benefit of the deduction for interest paid which is available up to Rs. 2 million each year. You will also not be able to deduct the current loss as well as the loss carried over to the title of the main house from the current income if you change to a new plan. Not only are you not allowed to carry forward home ownership losses for rental properties.

The cumulative benefit of switching to a new tax regime is around Rs. 75,000/- plus 4% cess if your total income is Rs. 15,000,000. As many exemptions and deductions can be claimed and the composition of these tax benefits varies from person to person, a ready-made answer cannot be given as to which plan is right for you. However, when it comes to the tax benefits that the majority of taxpayers have to forego, the benefits available with the existing regime outweigh the benefits of the lower rates available under the new regime, particularly in the case of employees and those who took out a home loan.

How to exercise the option to opt for the new regime and switch between the old and the new regime

For those with no business income, they must exercise the option annually by filing Form 10IE with the ITR, but before the ITR filing due date. i.e. July 31 and the option once exercised for a given year cannot be changed if you wish to file a revised return. So please consider all income, exemptions and deductions when opting for the scheme for any given year. Please note that opting for the new tax regime with your employer is not considered to be exercising the option with regard to income tax legislation. The exercise of the option with the employer has a limited purpose and you can decide to opt for an alternative plan when filing the ITR. Please ensure to deposit your ITR before the due date if you wish to opt for a new tax regime as the option is not available after the expiry of the due date. However, you can choose to remain in the old plan for one year and in the new plan the following year.

For those with business income, they must exercise the option once and for all by filing Form 10IE before the ITR filing due date, although the ITR can be filed later. Such a person can only opt out of the new tax regime once and then is not allowed to revert to the new tax regime unless there is no business income for that year. You should therefore be very careful when opting for a new tax regime if you have business income and should take into account the composition of the income not only of the years concerned, but also of all the years to come.

How does the diet work?

Let’s understand how the scheme works with examples. Almost all employees benefit either from the HRA for the rent paid, or have bought a house with a mortgage. Assuming that you have purchased a house with a home loan, you will not be able to avail the home loan benefits for interest and principal repayment of Rs. 3.50 lakhs together. After taking into account that you will also have to waive the claim for lump sum deduction of Rs. 50,000/- if you opt for the new scheme, you waive the full benefit of Rs. 4,00,000/- resulting in tax impact of Rs. 80,000 if you are in a 20% tax bracket and have an income between 5 lakhs and 10 lakhs. The net tax benefit lost is greater than the benefit of Rs. 62,500/- accruing to you under the new scheme. For those in a 30% tax bracket, the tax effect of the lost benefit at 30% would be 1.20 lakh compared to the benefit of Rs. 75,000/- resulting from the new scheme. We may also incorporate an exclusive benefit available in respect of NPS of Rs. 50,000/- available under Section 80 CCD(1B). So, in all likelihood, the new scheme is not attractive to an employee. An employee must calculate his final tax payable when filing the ITR and opt for the regime that helps him optimize his tax expenditure.

From the example above, it becomes clear that whether one is in a 20% or 30% tax bracket, the existing regime is better for one who takes all the basic deductions normally used by people. Consider an example where the person has an income of up to Rs. 7 lakhs and will have to pay a tax of Rs. 32,500/- if opting for a new scheme. However, if he is able to claim a deduction under Section 80 C for Rs. 1.50 lakhs and a deduction of Rs. 50,000/- under Section 80 CCD(1B) for NPS and reduce his total income below 5 lakhs, he will not have to pay tax by availing the u/s 87A refund up to Rs. 12,500/-. Thus, by investing two lakh rupees, one will be able to save Rs in tax. 32,500/- remaining under the old regime. However, this scheme will work for self-employed people who do not wish to save money to make eligible investments to claim various deductions.

to summarize Balwant Jain is a tax and investment expert and can be contacted at jainbalwant@gmail.com and @jainbalwant on Twitter.

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No lower property tax, no city income tax https://eshcinsel.net/no-lower-property-tax-no-city-income-tax/ Wed, 04 May 2022 20:40:28 +0000 https://eshcinsel.net/no-lower-property-tax-no-city-income-tax/ WYOMING, Mich. — Two ballot proposals failed Tuesday that would have cut property taxes and enacted a city income tax. Both proposals had to be approved for either to pass. The first proposal would have reduced property taxes in the town, reducing their tax mill from 11.8 to 5 mills. While voters approved this proposal, […]]]>

WYOMING, Mich. — Two ballot proposals failed Tuesday that would have cut property taxes and enacted a city income tax. Both proposals had to be approved for either to pass.

The first proposal would have reduced property taxes in the town, reducing their tax mill from 11.8 to 5 mills.

While voters approved this proposal, they voted against the second proposal.

This proposal would have enacted a municipal income tax – up to 1% income tax for residents and businesses and up to 0.5% for non-residents. This would have made Wyoming the third city in Kent County to implement an income tax, alongside Grand Rapids and Walker.

Neither proposal will enter into force.

“It was basically about changing our tax system to one that combines property tax and income tax,” said Wyoming City Manager Curtis Holt.

“We can’t reduce the mileage without finding another source of revenue, which is why they were put together the way they were.”

The city has struggled to meet the demands of its police and fire departments in recent years as calls for service continue to rise.

The increased tax revenue would have allowed the city to add 27 full-time firefighters and hire 13 additional patrollers.

READ MORE: See May 2022 special election results here

“We know our residents expect us to answer their calls, and there are times when we just can’t reach them because they’re not a priority,” Holt said Wednesday.

“Currently, we are very dependent on other communities around us to support our fire department. It’s unfair to those communities because they pay taxes in their communities.”

Holt says the city of Wyoming has seen more incidents of gun violence in the past three years than in the previous 10 combined.

“I know there are people who say, ‘We’ve got this money or that money,’ and I would invite them to discuss that, because I think they don’t properly represent the finances of the city of Wyoming,” he added.

Joshua Lunger, senior director of government affairs at the Grand Rapids Chamber, previously expressed concern on the passing proposals, and the potential effect they might have on western Michigan.

“Employers are already struggling to fill jobs facing a talent crunch and fear it will make Wyoming less competitive for job opportunities,” Lunger said.

As the number of people living and working in Wyoming continues to grow, Holt says the city will find other ways to accommodate its residents.

“We will look for solutions; we will find alternatives; we will find a way to provide the best possible service for the funding we have,” he said.

And of course, the Wyoming City Council can always reintroduce the proposals in subsequent elections.

“Next is potentially November, if they choose to do something then, but again the lawyer will have to make that decision.”

READ MORE: Carol Glanville wins 74th District special election

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