TAX AWARENESS
Tax awareness is the principle of being aware of what tax laws and principles are, or can be applicable to you. For example, is the expense you just had at the optometrist eligible as a medical expense? Is the amount you gave to your local eligible as a donation How do you begin to become tax aware? As a first step, simply asking a question to yourself, like the ones above.
If you have a “gut feeling” that the transaction you just did might be relevant to your tax return, chances are it is. Once you have your question, it’s now time to start your search for the answer.
AWARNESS PROGRAM
Paying your income tax for the first time is a milestone in any citizen’s life. However, the process can seem too daunting and tedious for a first-timer, and some of the terms tend to go right over your head. Are you just out of college and looking for a job? Or have you already landed the job and are going to file your income tax returns for the first time? If nitty-gritty of income tax and investments confuse you, Goodwill Groups is here to help. Our aim at Goodwill Groups is to simplify Income Taxes for you and make your financial lives easier.
WHAT IS INCOME TAX
There are two types of taxes in India – direct tax and indirect tax. Direct tax is a tax that is calculated and paid directly on your Income e.g. tax on salary etc. Income tax is a direct tax. Indirect tax is a tax that is indirectly charged to you on purchase of goods or use of service e.g. Buying a mobile phone or eating in a fast food joint. The seller of the mobile phone or the fast food service provider charges you tax and then deposits the same to the Government account. Most indirect taxes are now covered under Goods and Services Tax (GST).
Everyone who earns income above a certain amount is subject to income tax. Your income could be from salary, interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are pre-decided at the start of the year in the Union Budget (in the Parliament of India). The tax paid or deducted on these incomes is called the income tax.
