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Discuss, with relevant examples, the different levels of income and expenditure that a typical UK individual is likely to ex - Essay Example
Author : hollisblock
Finance & Accounting
Pages 8 (2008 words)
Different levels of income and expenditure Table of Contents Introduction 4 Main body 4 Income from salaries 4 Income from house property 5 Income from business or profession 7 Income from capital gains 7 Income from other sources 7 Household Consumption Expenditure 8 Private Investment Expenditure 9 Conclusion 10 References 12 Introduction The word income does not have any specific definition…
As per the Income Tax Act, 1961, the taxability of income of a person depends on the chargeability of the following heads of income: Income from salaries (sections 15 to 17). Income from house property (sections 22 to 27). Profits and gains of business or profession (sections 28 to 44D). Capital gains (sections 45 to 55A). Income from other sources (sections 56 to 59). So far as the heads of expenditure of an individual is concerned, the aggregate expenditure of a UK individual can be categorised into the following broad heads: Household Consumption Expenditure and Private Investment Expenditure. Main body Income from salaries Salary as per section 17(1) includes wages or salary, annuity, pension, gratuity, fees and commission, perquisites, profit in lieu of or in addition to wages or salary, advance of salary, any payment received by an employee in respect of the period of leave not availed by him, taxable portion of annual accretion, taxable portion of transferred balance, contribution made by Central Government in prevoius year. ...