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7 Basic Terms Students Should Know Before Writing Taxation Law Assignment

This article highlights some of the most basic terms that students should know before they begin with the taxation law assignment writing.

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Assignments, no matter what the subject is, at first, always have a dreadful effect on us. We often fall in these assignments trap and get confused about how and from where to begin. The area of study is immense when we decide to write an assignment.

Especially when it comes to taxation assignments, the area of study is even more. Every country has its taxation laws, and one needs to abide by them to maintain the smooth functioning of the economy. Taxation requires a vast study of the subject, and the legal terms following it are even more in number. It is a must for a person studying tax to be fully equipped with these terms.

But talking about a general scenario, there are a few terms that are common to all countries. While doing a tax assignment, these terms form an important guideline. A good grip over these terms helps you in finishing the assignment at a much faster pace. Some of the terms that could provide taxation law assignment help are mentioned below to ease a student’s workload. These are,

Previous year
The previous year is also known as the financial year or tax year. It is an often-used term that describes the 12 months for which we are filing the income tax. The ending and starting date of this period differs from country to country. Whatever may be the joining date of an employee, but he/she has to file the tax for the entire year.

Assessment year
It is a term that comes to use while filing tax. It is the year in which one assesses the finances and files the tax for the previous year. For the financial year 2019-2020, the assessment year is 2020-2021.

Salary slip
A salary slip or payslip has to be taken from the HR department to know all the major components of our salary. Tax will be deducted based on these components. Like there is house rent given by many companies, if one is living on rent, he/she can save this part of the income from tax.

Taxable income
Other than your salary, there are other sources of income, as well as our house property, income from capital gain, or any other sources—a sum of all these accounts from the total taxable income of an individual.

Deductions
Deductions are required to lower the tax that one has to pay. It reduces gross income. Deductions can be in the form of FD, PPF, or mutual fund schemes.

TDS
It is the tax deducted at source (TDS). In this, the person or bank paying you will deduct the tax based on the rules prescribed by the tax department.

Tax payable
The final payable tax is calculated by deducting the already paid TDS from the total tax calculated on taxable income.

The more we go into the depth of tax, the more are the terminologies that come forward. The field is too diverse to grab in a go. But these few terms are used at the basic as well as the advanced level.


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