Unit-2 Basic of charge- Income Tax | BBA 3rd Sem

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Unit-2

Basic of charge

• When we talk about charge, we’re referring to the concept of electric charge. Electric charge is a fundamental property of matter. It’s what gives rise to electric forces and allows for the flow of electricity.
• There are two types of electric charge: positive and negative. Positive charge is associated with protons, which are particles found in the nucleus of an atom. Negative charge is associated with electrons, which orbit around the nucleus.
• Like charges repel each other, while opposite charges attract. This is why you might have experienced a shock when you touch a doorknob after walking on a carpet – the electrons from your body transfer to the doorknob, resulting in a discharge of electric charge.
• Charge is measured in units called coulombs (C). One coulomb is equal to the charge of approximately 6.24 x 10^18 electrons. It’s important to note that charge is a conserved quantity, meaning that it cannot be created or destroyed, only transferred or redistributed.
• In terms of practical applications, charge plays a crucial role in many aspects of our daily lives. It’s the basis for the functioning of electronic devices, such as smartphones, computers, and televisions. It also powers electrical circuits, allowing us to use electricity for lighting, heating, and powering various appliances.
• When it comes to readability, it’s essential to use clear and concise language. Avoid technical jargon as much as possible and explain complex concepts in a simple and understandable way. Break down your content into paragraphs and use headings and subheadings to make it easier for readers to navigate.

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Residential status and tax liability

• Residential status and tax liability are important factors to consider when it comes to understanding how taxes work. Your residential status determines how you will be taxed and what tax obligations you have in a particular country or jurisdiction.
• Residential status refers to your legal status or classification as a resident or non-resident for tax purposes. It is typically determined by the amount of time you spend in a specific country or jurisdiction during a tax year, as well as other factors such as your immigration status and the purpose of your stay.
• If you are considered a resident for tax purposes, you will generally be subject to tax on your worldwide income. This means that you will need to report and pay taxes on income earned both within the country and outside of it. On the other hand, if you are classified as a non-resident, you may only be taxed on income earned within that specific country or jurisdiction.
• Tax liability refers to the amount of tax that you are legally obligated to pay. It is determined by various factors, including your income level, deductions, credits, and the tax rates applicable to your specific situation. Understanding your tax liability is crucial for proper tax planning and compliance.
• To determine your tax liability, you will need to calculate your taxable income. This is done by subtracting eligible deductions, such as business expenses or mortgage interest, from your total income. The resulting amount is then subject to the applicable tax rates.
• When it comes to readability, it’s essential to explain complex tax concepts in a clear and understandable manner. Avoid using excessive technical jargon and break down information into manageable sections. Use headings, subheadings, and bullet points to make the content more scannable and reader-friendly.
• Remember, everyone’s tax situation is unique, and it’s always a good idea to consult with a tax professional or accountant to ensure that you understand your specific tax obligations and liabilities. They can provide personalized advice based on your individual circumstances.

Wikipedia- https://en.wikipedia.org/wiki/Electric_charge

Meaning of Employees

• Employees play a crucial role in any organization. They are individuals who are hired by a company or business to perform specific tasks, contribute to the overall goals of the organization, and help drive its success
• An employee is someone who works under an employment contract, which outlines the terms and conditions of their employment. This contract typically includes details such as job responsibilities, working hours, compensation, benefits, and other relevant employment terms.
• One of the key characteristics of an employee is that they work for a specific employer and are usually subject to the employer’s supervision and control. This means that the employer has the authority to direct and guide the employee’s work activities, set deadlines and goals, and provide feedback and performance evaluations.
• Employees are an integral part of an organization’s workforce. They bring their skills, knowledge, and expertise to the table and contribute to the growth and success of the business. By performing their assigned tasks and responsibilities, employees help the organization achieve its objectives and deliver products or services to customers.
• When it comes to readability, it’s important to explain concepts in a clear and concise manner. Avoid using excessive technical jargon and consider your audience’s level of understanding. Break down information into smaller sections, use headings and subheadings, and include examples or anecdotes to make the content more engaging and reader-friendly.
• Employees are a valuable asset to any organization, and their contributions are essential for its growth and success. It’s important for employers to create a positive work environment, provide opportunities for growth and development, and recognize and reward employees for their hard work and dedication.

Resident status

• The residence status of an individual refers to their legal status in a particular country or region. It determines whether they are considered a resident, non-resident, citizen, or immigrant. The specific residence status of an individual can vary depending on factors such as their nationality, immigration status, and the laws of the country they are residing in. Each country has its own regulations and criteria for determining residence status.

Types of status

1. Citizen: This refers to individuals who are legally recognized as citizens of a particular country. They have the right to live, work, and vote in that country.
2. Permanent Resident: Permanent residents, also known as immigrants or green card holders, have the right to live and work in a country indefinitely. They typically have most of the rights and benefits of citizens, but may not be able to vote or hold certain government positions.
3. Non-Resident: Non-residents are individuals who temporarily reside in a country for a specific purpose, such as work, study, or tourism. They do not have permanent residency status and are subject to certain restrictions and regulations.
4. Temporary Resident: Temporary residents are individuals who are granted permission to live in a country for a limited period of time. This could include individuals on work visas, student visas, or other temporary permits.
5. Refugee or Asylum Seeker: Refugees and asylum seekers are individuals who have fled their home countries due to persecution, conflict, or other dangerous circumstances. They seek refuge in another country and may be granted temporary or permanent protection.

An ordinary resident

• An ordinary resident is someone who lives in a particular place for a significant amount of time and has established their primary home there. It’s a common term used to describe individuals who are not temporary or transient residents.
• An ordinary resident is a person who has made a place their main home for a considerable period. They have settled down in that location and have no plans to move elsewhere. This term is often used to distinguish individuals who have a long-term presence in a specific area from those who are just passing through or staying temporarily.
• An ordinary resident, in the context of residency, refers to an individual who has established their primary home in a particular place for a significant duration. This person has chosen to settle down in that location and considers it their main place of residence. Unlike temporary residents or those who are just passing through, ordinary residents have a long-term commitment to the community and are deeply rooted in the area.
• Being an ordinary resident implies a sense of permanence and stability. It means that the individual has integrated themselves into the local community, built social connections, and contributed to the local economy. They have likely established a network of friends, neighbors, and colleagues, and have become familiar with the local customs, culture, and way of life.
• Ordinary residents often have responsibilities and obligations associated with their residency, such as paying taxes, abiding by local laws and regulations, and participating in community activities. They may also enjoy certain privileges and benefits that come with being a long-term resident, such as access to public services, voting rights, and eligibility for local programs or initiatives.

Non- Ordinary

• A non-ordinary resident refers to someone who does not have a permanent or long-term residence in a particular place. They are typically individuals who are temporarily staying or visiting a location for various reasons, such as work, travel, or study. Unlike ordinary residents, non-ordinary residents do not establish their primary home in that specific area.
• Non-ordinary residents often have a temporary purpose for being in a place. For example, they may be expatriates working in a foreign country for a limited period, tourists exploring a new destination, or students studying abroad for a semester or academic year. Their stay is typically time-bound and does not involve a long-term commitment to the local community.
• Non-ordinary residents may have different legal and administrative statuses depending on the country or region they are in. They may require specific visas or permits to stay in a place for a certain duration. These individuals usually do not have the same rights and responsibilities as ordinary residents, as they are not considered permanent members of the community.
• Being a non-ordinary resident can offer unique experiences and opportunities. It allows individuals to explore new cultures, broaden their horizons, and gain diverse perspectives. However, it also comes with challenges, such as adapting to new environments, dealing with language barriers, and being away from familiar support networks.
• Non-ordinary residents often have to navigate different administrative processes, such as obtaining visas, finding temporary housing, and understanding local customs and regulations. They may rely on temporary accommodations, such as hotels, hostels, or rented apartments, rather than owning or leasing a permanent home.
• While non-ordinary residents may not have the same level of involvement in the local community as ordinary residents, they can still contribute in various ways. They may engage in cultural exchange, support local businesses, or participate in community events during their temporary stay. Their presence can enrich the local environment and foster cross-cultural understanding.

Basic condition of ordinary resident

• An ordinary resident is someone who has a permanent home in a particular place and spends a significant amount of time there.
• To be considered an ordinary resident, a person typically needs to meet a few criteria. First, they should have a physical presence in the place they consider their permanent home. This means they live there for a substantial part of the year and have a place to stay, like a house or an apartment.
• Second, an ordinary resident usually has some kind of legal status in the place they reside. This could be citizenship, permanent residency, or a long-term visa that allows them to stay for an extended period.
• Additionally, ordinary residents often have ties to the local community. They may be involved in local activities, have a job or business, or be enrolled in educational institutions. They contribute to the local economy, pay taxes, and participate in the social fabric of the community.
• Being an ordinary resident comes with certain benefits and responsibilities. Residents usually have access to public services like healthcare, education, and social welfare programs. They may also have the right to vote in local elections and participate in community decision-making processes.

Person of Indian Origin (PIO)

• PIO refers to individuals of Indian origin or ancestry who are living outside of India. The PIO status was introduced by the Indian government to establish a connection with the Indian diaspora and provide certain benefits and privileges to individuals of Indian origin.
• To be eligible for PIO status, a person should have Indian ancestry or be a spouse of a person of Indian origin. They can be citizens of any country other than Pakistan, Bangladesh, or Afghanistan. PIO status is not available to individuals who hold Indian citizenship or have ever held Indian citizenship.
• The PIO status offers several benefits to individuals who hold it. Some of these benefits include a lifelong visa to visit India without the need for a separate visa, exemption from registration with the Foreigners Regional Registration Office (FRRO) for stays longer than 180 days, and parity with non-resident Indians (NRIs) in economic, financial, and educational matters.
• However, it’s important to note that the PIO status has been merged with the Overseas Citizen of India (OCI) status. The OCI status provides even more benefits and privileges to individuals of Indian origin. The merger took place in 2015, and now all existing PIO cardholders are considered OCI cardholders.
• The OCI status offers benefits such as a multiple-entry, multi-purpose lifelong visa to visit India, exemption from registration with the FRRO for any length of stay in India, and the right to work or study in India without requiring any additional permits.
• To obtain OCI status, individuals need to apply through the online portal provided by the Indian government. The application process requires the submission of necessary documents, such as proof of Indian origin, proof of current citizenship, and other relevant documents. Once approved, individuals receive an OCI card that serves as proof of their OCI status.
• It’s worth mentioning that the benefits and privileges associated with PIO or OCI status are subject to certain regulations and restrictions. It’s always a good idea to check with the Indian embassy or consulate in your country of residence for the most up-to-date information regarding eligibility and benefits.

The residential status

• The residential status of a Hindu Undivided Family (HUF) is determined based on certain criteria. An HUF is considered to be a resident of India for tax purposes if the control and management of its affairs are wholly or partly situated in India during the financial year.
• If the Karta (the head of the HUF) resides in India for at least 182 days or more during the financial year, the HUF is considered a resident. However, if the Karta is a non-resident, then the HUF is treated as a non-resident for tax purposes.