PRESENTED BY:

SALONI GUPTA
VIVEKA BOTHRA
SUBMITTED TO : AAKANKSHA JAIN
RASHI RAKSHITA PARASHAR
MADAM
 A tax is a compulsory financial charge or
some other type of levy imposed upon a
taxpayer by a governmental organization in
order to fund various public expenditures. A
failure to pay, along with evasion of or
resistance to taxation, is punishable by law.
Tax accounting is a structure
of accounting methods focused on taxes rather
than the appearance of public financial
statements. Tax accounting is governed by the
Internal Revenue Code, which dictates the
specific rules that companies and individuals
must follow when preparing their tax returns.
 INDIRECT
DIRECT
TAXES
TAXES
INCOME TAX GOODS AND
SERVICES
COORPORATE
TAX
TAX
VALUE
CAPITAL GAINS TAX
ADDED TAX

PERQUISITE
1. 1 EXISE
TAX DUTY

SECURITIES ND
TRANSACTION CUSTOM
TAX DUTY
 For an individual taxpayer, tax accounting
focuses solely on items such as income,
qualifying deductions, investment gains or
losses, and other transactions that affect the
individual’s tax burden. This limits the amount of
information that is necessary for an individual to
manage an annual tax return, and while a
tax accountant can be used by an individual, it is
not a legal requirement.
 Meanwhile, general accounting would involve the
tracking of all funds coming in and out of the
persons' possession regardless of the purpose,
including personal expenses that have no tax
implications.
From a business perspective, more information
must be analyzed as part of the tax accounting
process. While the company’s earnings, or
incoming funds, must be tracked just as they are
for the individual, there is an additional level of
complexity regarding any outgoing funds directed
towards certain business obligations. This can
include funds directed towards specific business
expenses as well as funds directed
towards shareholders.
While it is also not required that a business use a
tax accountant to perform these duties, it is fairly
common in larger organizations due to the
complexity of the records involved.
Even in instances where an organization is tax-
exempt, tax accounting is necessary. This is
due to the fact that all organizations must
file annual returns. They must provide
information regarding any incoming funds,
such as grants or donations, as well as how the
funds are used during the organization’s
operation. This helps ensure that the
organization adheres to all laws and
regulations governing the proper operation of
a tax-exempt entity.
The primary purpose of tax accounting is to:
 determine taxable income,
 preparation of federal & state income tax
returns, & planning of operations along lines
that will holds.
 Be able to track funds ( funds in as well as
funds going out ) associated with individuals
and entities.
 Focuses on tax issues.
 Includes all activities related to filing of tax
returns and planning for future tax obligation
 It takes special training and education ( which
is why some accountants specialize only in
taxes).
 If a business entity doing tax accounting it
helps them to file the tax return.
 It saves the time of a business entity for
doing the calculation at the time of filing a
tax return.
 A business entity can do tax planning based
on tax accounting.
 Tax accounting will not give the correct
picture of operational cost and benefit.
 Companies that are required to get their
accounts audited can’t follow only the tax
accounting method.
Income tax is referred to as a progressive tax
i.e. the rate at which tax on income is payable
increases with the income of the assessee.
Income tax slab rates specify the threshold
annual income limits at which a higher or lower
rate of tax is applicable. In the following
sections we will discuss the income tax rates
for FY 2018-19 (AY 2019-20) and some other
key features of income tax in India.
 Individuals Below The Age Of
Income Tax Slab
60 Years
Up to `2,50,000 Nil
2,50,001 to 5,00,000 5%

5,00,001 to 10,00,000 12,500 + 20% of total income

exceeding 5,00,000

Above 10,00,000 1,12,500 + 30% of total income

exceeding 10,00,000
 Senior Citizens (Aged 60 Years
Income Tax Slab
But Less Than 80 Years)
Up to 3,00,000 Nil
3,00,001 to 5,00,000 5%

5,00,001 to 10,00,000 10,000 + 20% of total income

exceeding 5,00,000

Above 10,00,000 1,10,000 + 30% of total income

exceeding 10,00,000

Very Senior Citizens (Aged 80

Income Tax Slab
Years And Above)
Up to 5,00,000 Nil
5,00,001 to 10,00,000 20%

Above 10,00,000 1,00,000 + 30% of total income

exceeding 10,00,000
 Above rates does not include Surcharge and
Cess.
◦ 10% surcharge is applicable on income tax if income
exceeds 50 lacs but upto 1 crore
◦ 15% surcharge is applicable on income tax if income
exceeds 1 crore
◦ 4% Health & Education Cess is applicable on the income
tax and applicable surcharge.
 Tax rates and slabs are same for Male and
Female as per above table
 Individuals having total income below 5 lakhs,
are eligible for full tax rebate under section 87A
Turnover Particulars Tax Rate
Gross turnover upto 250 Cr.
25%
in the previous year
Gross turnover exceeding
30%
250 Cr. in the previous year

In addition cess and surcharge is levied as follows: Cess:

4% of corporate tax
Surcharge: Taxable income is more than 1Cr. but less
than 10Cr.: 7%
Taxable income is more than 10Cr. :12%