Got a tricky question? Receive an answer from students like you! Try us!

Discuss, with relevant examples, the different levels of income and expenditure that a typical UK individual is likely to ex - Essay Example

Only on StudentShare
Masters
Author : hollisblock
Essay
Finance & Accounting
Pages 8 (2008 words)

Summary

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…

Extract of sample
Discuss, with relevant examples, the different levels of income and expenditure that a typical UK individual is likely to ex

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. ...
Download paper

Related Essays

Event Study for Efficient Market Hypothesis- Ex dividend Data
Anomalies in the expression of the standard, tax centric theory of stock performances have been noted and described. While a tax centric hypothesis has explanatory power, this study examines evidence that there are additional forces of corporate governance, ownership concentration, and market capitalization that can adjust the performance of dividends independent of taxation. This study is a meta-analysis describing the Western standard for market forces pertaining to dividend taxation, on the assumption that stock prices must be adjusted to less than the amount of the dividend in order to…
32 pages (8032 words)
Discuss, with reference to relevant academic literature, how a tax system might be designed to combat avoidance and evasion.
Tax evasion and avoidance have become common and is raising concerns over the effective funding of government administrative functions. It is therefore imperative that the government develop strategies that would help it reduce the cases of tax evasion and avoidance as this is eating into the country’s financial policies. People who deliberately avoid tax by hiding their wealth and income tend to pose a great challenge to the society. In the country’s effort to adjust the economy and eliminate the balance of payment deficit, it is essential to detect and follow up tax evaders and ensuring…
8 pages (2008 words)
Discuss, with relevant examples, the different levels of income and expenditure that a typical UK individual is likely to ex
Its quality of education is high and the literacy levels are among the highest in the world. Its learning institutions, especially the universities, rank highly in global ratings. The income levels in the United Kingdom are above the global average (Cordner, Das, and Cordner, 2010, p. 76). A typical UK citizen is thus destined to experience many levels of income and expenditures due to the nation’s diverse nature. Income The average household net-adjusted disposable income on the global scale is $22,387 per year. United Kingdom’s average citizen outdoes this and has an average annual…
7 pages (1757 words)
Capital Expenditure and Depreciation
Acquiring fixed assets like building, land, plant and machinery, motor vehicle and furniture fittings are regarded as the capital expenditure. The assets are not to be sold for making profit but that assets should be retained in the business. Capex generally yields gains over a long period of time (Banerjee, 2010). Capex on a financial statement is important as the investors are interested in the amount of capital improvement that he experiences. The declining capex will make the investor cautious as well as abnormal increased values signals that the investor should also be cautious (Jennings,…
6 pages (1506 words)
individual income tax. "USA Indiana state laws "
The taxpayer participates in racecar driving on mini circuit. The car is hers and she is her own mechanic. She lost money during the first two competition years. Taxpayers often receive gifts support the products of racing. The question is whether how the deductions will apply to the swimming pool, the gift, the office, the losses she experienced in racing. It also extends to the treatment that the taxation to the gifts which they receive. Summary of Issues The issue in this scenario is the application of taxation and deductions on incomes according to the Indiana taxation law. It seeks to…
6 pages (1506 words)
Central Bank for GCC
International financial crisis in the recent years calls for monetary integration and regional cooperation of the countries for efficiently dealing with the crises and protecting the interests of the member countries. The monetary policies of a central bank plays pivotal role in regulating interest rates and inflation in the countries with a view to ensure economic growth. The monetary policies of a central bank have impact on various economic factors such as employment, liquidity in the system and stability of the currencies. Central bank proposed for the GCC countries aims at financial…
The EU and US Data Protection Approaches and their Sustainability
This essay focuses on the US and the EU that are among the blocs that have been on the forefront to promote data protection and hence privacy. The right to privacy is a fundamental human right that is presented as a main focus of the essay. Whereas the US has no specific regulation scheme that is designed to regulate the collection, processing and transfer of personal information, the EU has one. The US has also mounted a scathing attack at the EU Data Protection Directive claiming that it is fast becoming outdated and with time its practicability in implementation will deteriorate. Herein…
10 pages (2510 words)