The Tax Preparation Blog

Posts Tagged ‘rules’

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ISLAMABAD : Supreme Court on Thursday ordered parliament to review a controversial new procedure of appointing judges but stopped short of scrapping the constitutional amendment introduced this year. “We would like to refer to the parliament for recons ….

Richard Schmalbeck: Gifts and the Income Tax: An Enduring Puzzle

Question: Sir,What is the tax treatment of salary withheld for not serving the company for full notice period.?

Say for example:
April -March – 12 months salary
Notice Period – 3 months
Notice Period not served – 2 months
so will the TDS deductible by company is for a period of (12- 2 = 10 months) or for 10 months only or
Salary received 10 months – 2 months salary withheld or paid back = 8 months
So will the taxable income is for 12 months/10 months/8 months and what is the section of the IT rule that deals with that.
Please reply immediately.
Regards,
Om

Answer: I assume you are talking about the tax laws in the U.S.

Your contractual agreement with the company does not affect your government taxation. Taxes are based on your expect annual rate of income. There are various rates of pay, called “Tax Brackets” that basically designated a certain percentage of the your expected tax liability. Typically, the more you make, the more you pay. However, tax deductions throughout the year are simply an estimate. They may not be your actual tax rate at the end of the year. At the end of the year, people who work in America, file a form 1040, 1040A, or 1040EZ with the government. The form they use helps them calculate what their actual pay was (gross pay minus any legitimate deductions), how much they contributed to their tax liability, and what their remaining liability or credit for the year might be. Considering that you worked only 10 months, your estimated taxes were probably calculated based on the anticipation that you were planning to work the entire year. Therefore, I would guess that you’ll be in a lower tax bracket than was orignally estimated and you should be due a return.

Besieged Greens focus on electoral survival

MARY MINIHAN

Tax Tips – Tell me… “What is my TDS status if I have worked for two employers?”

Question: What rules govern monetary gifts to adult children?

I would like to give some money to my adult children. I will NOT have a taxable estate at the time of my death, Does gift tax still apply to amounts over $10,000? Does income tax apply?

Answer: You can give more than the minimum as long as you fill out the form for the IRS which credits this amount to your eventual “total estate”..

Personal Finance: Prince looking like more of a pauper

Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain “signatures” by someone other than the actual author will be removed.

Myth #1: There’s income tax on a gift over 13K

Question: How are securities tax under the Income Tax Act(India).?

Under the Income Tax regulations, how are capital gains from securities taxed. What is the process of filing tax for these transactions with the Income Taz department

Answer: Short Term Capital Gains (STCG) from sale of shares through recognized stock exchange or units of equity MFs with STT paid are taxed @ 15%

Short Term Capital Loss (STCL) from sale of shares through recognized stock exchange or units of equity MFs with STT paid can be adjusted against any Short Term Capital Gains (STCG) or Long Term Capital Gains (LTCG).

Long Term Capital Gains (LTCG) from sale of shares through recognized stock exchange or units of equity MFs with STT paid are tax free.

Long Term Capital Loss (LTCL) from sale of shares through recognized stock exchange or units of equity MFs with STT paid can be adjusted against Long Term Capital Gains (LTCG) from sale of shares through recognized stock exchange or units of equity MFs with STT paid.

In your ITR you have to declare Capital Gains under Schedule CG.

HMT

Charting the course

Where do you see the Egyptian economy going in 10 years time? In 10 years I see the Egyptian economy at the same level where Italy and Turkey are today. These are economies that are well structured, well established and have institutions that function.

Higher-income

Question: 2010 Child Tax Credit?

I’m sooo confused!!
I’ve been told that this year low income families will be eligible to receive $3,000 from the child tax income credit. Yet I can’t find anything on-line about this & knowing little to nothing about taxes to begin with I’m just going around in circles.
I’m 23, a single mom, live in Michigan, and had my son in January but have only worked 4mos this year earning approximately $2,500. Do I qualify? What am I looking at getting back? I know it’s a little early to be worrying about this but again, I live in Michigan & knowing the kind of money that I’m looking at having is essential to my survival. Does anyone do taxes for a living or is familiar with the rules & regulations regarding this years taxes?
Please help!
I expected that what I was told was wrong. It sounded absurd. However, I’ve heard it from about 4 people & it really started to pique my curiosity.
Although none of those people have kids. Haha

Answer: the child credit for 2009 is $1000 and applies to your tax liability(and yes, your sources don’t know what they are talking about)
if you have none it is not used
you may be entitled to the EIC, if you had earned income and with a child in your home under 17, if this applies to you then you possibly will be eligible for ‘additional child credit’(which is the remainder of the $1000 that wasn’t used to reduce your tax liability)

Monday newspaper round-up: Cadbury, Ryanair, Goldman Sachs

LONDON (SHARECAST) – Kraft is drawing up plans to raise its £10.3bn hostile offer for Cadbury ahead of a deadline this month as the takeover battle for the UK confectionery group reaches its final stages.

What is taxed in regulations?