Filing an Income tax return for an individual.
Assistance for individuals wanting to file their income tax return.
This report helps individuals who wish to know more about filing an income tax return for themselves in Australia. It gives a bird eye about things to keep in mind while filing an income tax return
Sreyansh Giri
21922648
Table of contents
Executive Summary ......................................................................................................... 1
Introduction Tax
Executive Summary
Benjamin Franklin once stated, " In this world nothing is certain but death and taxes". There is no second thought in saying that taxation plays a very critical role in society and can affect the lives of everyone within it. …show more content…
It is levied upon personal earnings such as salaries, wages etc., business income and capital gains in case of an individual. Individual's income is always taxed at a progressive tax rate. Income tax is collected by the "Australian Taxation Office". Income tax is payable on assessable income which comprises of ordinary income and statutory income. There are certain deductions which an individual can claim. These deductions are general deductions and specific deductions.
What is taxation?
According to the Oxford English Dictionary, " a compulsory contribution to the support of government , levied on persons, property, income, commodities, transactions, etc."
Income tax refers to the tax levied upon the income earned by an individual. Income tax was first introduced in Great Britain in the year 1799 by the then Prime Minister, William Pitt, to fund the war against Napoleon. One of the first countries to follow the United Kingdom and impose income tax was the United States which levied it to pay for the Civil War. In Australia, income tax was introduced by the Commonwealth in 1915 to support the country's World War I effort.
Who is a taxpayer?
Taxpayers are the legal entities who are liable to pay the tax and who can be penalised upon non - payment. In Australia, income tax is payable by income …show more content…
Statutory Income:
An individual's allowances such as gratuities, compensations, benefits, bonuses and premiums provided in respect of an employment or services rendered form part of statutory income. Return to work payments, royalties, insurance for loss of amounts that would have been included in assessable income, interest on overpayments and early payments of tax etc. are some examples of other miscellaneous statutory income provisions.
Exempt Income and Non- assessable income
Exempt income and non assessable income do not form pat of the assessable income. Exempt income is broadly classified into two classes of exempt income which is first class exempt income and second class exempt income. The first class exempt income comprises of income from certain kinds if entities such as charitable institutions, religious institutions, public hospitals etc. The second class exempt income comprises of certain kinds of income such as PDF dividends, allowances received from the members of a defence force, non cash business benefits not exceeding $300 etc. Non- assessable non-exempt income comprises of income such as GST on a taxable supply, Income that is fringe benefit, tax free component of an ETP etc.
Assistance for individuals wanting to file their income tax return.
This report helps individuals who wish to know more about filing an income tax return for themselves in Australia. It gives a bird eye about things to keep in mind while filing an income tax return
Sreyansh Giri
21922648
Table of contents
Executive Summary ......................................................................................................... 1
Introduction Tax
Executive Summary
Benjamin Franklin once stated, " In this world nothing is certain but death and taxes". There is no second thought in saying that taxation plays a very critical role in society and can affect the lives of everyone within it. …show more content…
It is levied upon personal earnings such as salaries, wages etc., business income and capital gains in case of an individual. Individual's income is always taxed at a progressive tax rate. Income tax is collected by the "Australian Taxation Office". Income tax is payable on assessable income which comprises of ordinary income and statutory income. There are certain deductions which an individual can claim. These deductions are general deductions and specific deductions.
What is taxation?
According to the Oxford English Dictionary, " a compulsory contribution to the support of government , levied on persons, property, income, commodities, transactions, etc."
Income tax refers to the tax levied upon the income earned by an individual. Income tax was first introduced in Great Britain in the year 1799 by the then Prime Minister, William Pitt, to fund the war against Napoleon. One of the first countries to follow the United Kingdom and impose income tax was the United States which levied it to pay for the Civil War. In Australia, income tax was introduced by the Commonwealth in 1915 to support the country's World War I effort.
Who is a taxpayer?
Taxpayers are the legal entities who are liable to pay the tax and who can be penalised upon non - payment. In Australia, income tax is payable by income …show more content…
Statutory Income:
An individual's allowances such as gratuities, compensations, benefits, bonuses and premiums provided in respect of an employment or services rendered form part of statutory income. Return to work payments, royalties, insurance for loss of amounts that would have been included in assessable income, interest on overpayments and early payments of tax etc. are some examples of other miscellaneous statutory income provisions.
Exempt Income and Non- assessable income
Exempt income and non assessable income do not form pat of the assessable income. Exempt income is broadly classified into two classes of exempt income which is first class exempt income and second class exempt income. The first class exempt income comprises of income from certain kinds if entities such as charitable institutions, religious institutions, public hospitals etc. The second class exempt income comprises of certain kinds of income such as PDF dividends, allowances received from the members of a defence force, non cash business benefits not exceeding $300 etc. Non- assessable non-exempt income comprises of income such as GST on a taxable supply, Income that is fringe benefit, tax free component of an ETP etc.