TAX Payment System, Property Tax Payment, Online Tax Payment Service, Income Tax Payment

Tax Payment

A Tax Deduction or a Tax-Deductible expense has the primary function to reduce ones taxable income. Since taxes constitute a part of the taxable income earned by individuals, tax deductions can reduce the taxable income and offer a certain amount of tax relief.Tax Deduction is a common practice in all the countries of the world. With such an expense, individuals can enjoy a tax deduction right when they get their income. With this, their taxable income falls a great extent.According to the Indian Tax System any income or salary under any heads of income is eligible for this. The amount is generally collected by state or local governments or any cooperative or a body of trustees and includes any income earned during the previous year from any number of employers. Tax Deduction however, does not include, loss incurred from house property income.
Insurance commission related to procuring all insurance business, fees for professional and technical services, Income in respect of Units of Mutual Fund specified under sec 196A of the Income Tax , income from units purchased in foreign currency or long term capital gains arising from transfer of such assets under sec 196B is also covered under Tax Deduction.The USA tax system provides similar process like the Indian Tax system. While they also offer tax deductions on charitable contributions to legal welfare organizations, they offer this on mortgage payments on one’s primary residence, tax exemptions to people with disabilities, tax deductions on business start-up and operation costs. USA offers tax deductions on moving expenses such as casualty expenses not covered by casualty insurance and job-search expenses.

Tax deducted in this manner needs to be deposited in the Government treasury and assigned to the Central Government, within a stipulated time period. Indian Government is adhering to the policy of TDS to broaden its tax bracket in the country. Income gained through several sources falls under the tax deduction at source or TDS scheme. Some of such income that are subjected to ‘Tax Deduction at Source’ are as follows:

	Salary
	Interest
	Rental fee
	Interest on Securities
	Insurance commission
	Dividends from shares and UTI/Mutual Funds
	Commission and brokerage
	Prize money won from lotteries, horse races
	Payments to non-resident sportsmen or sports associations
	Commission on sale of lottery tickets
	Fees for professional and technical services and the like
	Compensation for compulsory acquisition
	Income from units of an offshore fund
	Income from foreign currency bonds or shares of Indian Companies

A tax deduction or a tax-deductible expense affects a taxpayer's income tax. A tax deduction represents an expense incurred by a taxpayer. They are variable amounts that you can subtract, or deduct, from your gross income.It is subtracted from gross income when the taxpayer computes his or her income taxes. As a result, the tax deduction will lower overall taxable income and thus lower the amount of tax paid. The exact amount of tax savings is dependent on the tax rate and can be complicated to determine. For some higher-income taxpayers, claiming all eligible tax deductions would result in having to pay the alternative minimum tax, and would result in a higher amount of tax paid.
Tax Deducted at Source is one of the methods of collecting income tax from the income tax payers or assessees in India. In such cases, tax is directly collected at the source at which the income arises or generates. Whenever any specified type of income arises or accrues to an individual, Income Tax Act calls for the deduction of a specific percentage of such income, in the form of income tax paid by the individual, and payment of only the remaining amount to the recipient of such income.

Tax Payment

The Income Tax Act, 1961, as an individual, you have to pay advance tax if the total tax payable in the relevant financial year exceeds Rs 5,000. Apart from the regular sources of income, like salary, business/profession and other sources like interest, advance tax is also payable on non-regular income like capital gains.Advance tax has to be paid before the relevant financial year comes to an end. So, for the year 1 April 2001 to 31 March 2002, any amount that is paid before 31 March