Tax is one of the most important sources of income for the government. Tax in simple terms can be defined as a financial encumbrance imposed on the taxpayers by an authorized government organization in order to fund various public expenditures. Taxation is a method by which the government of a nation or taxing authority levies tax on its citizens; both individuals and the business entities.
As a working adult, you will have to learn how to file taxes and familiarize yourself with the laws regulating the tax system. This is why many educational curriculums include taxation as a subject in their syllabus, to provide some guidelines concerning taxation to the students. Usually the taxation as a subject includes the calculation relating to the taxation and the provisions regulating and concerning the tax system of the country.
In taxation, questions are usually put forth in the form of illustrations, which the students have to attempt using the formula provided by the statutes to calculate tax. As easy as it might sound it can be a hard task to tackle to attempt the questions if you don’t have a proper structure, prompting many students to seek online taxation assignment help. Since the purpose of the subject is to prepare the students for the future, the questions should be attempted as such with great understanding and thoroughness; here are a few points that you should keep in mind while writing your taxation assignment.
- Provide a brief overview.
As the government levies taxes on the basis of occupation of the individual and the nature of the firm in the case of corporate taxation, it becomes important to provide a brief background while writing an income tax report. It can help the taxing authority to understand the organization and can also provide some exemptions to the tax paid if they meet certain criteria. In the overview, you must include the nature of goods and services that’s offer by the individual or the organization, on the basis of the information provided in the question.
You should also describe the location of the occupation or where the business is located and its branches if any is mentioned in the question. It helps the tax authority to decide if the person is subject to any taxes in a different state or country.
- Explain the sources of income
It is important to be careful while mentioning your sources of income. If you miss even a small one it can cause a huge problem while calculating the total taxes. That’s why, be careful while reading and writing the sources of revenue.
You should also attach the documents that give evidence of the income in support, if provided any with the tax question. Make sure you include all the sources and amount of income that was received during the tax period. Similar to the tax filing in real life, it’ll give an excellent base for the justification of the calculation done by you.
- Explain all expenses
Tax is levied on the profit earned by the company or the salary of the individual. So it is important to mention the net profit that is the difference between the total income and expenditure. Make sure you first read the expenditure and expenses provided in the question very carefully, so that you don’t miss anything while writing.
Similar to the source of income section, if there is any documentation supporting the expenditure, make sure to include it in the assignment as well. It’ll not only validate your expenses but also help the reader better understand while analyzing the calculation. Don’t forget to mention any donations, or depreciation, or any other specific loss, or tax deductible insurances, as it’ll help you lower the tax amount.
- Tax deductions
Contributions made by the taxpayer to certain relief funds and charitable institutions can be claimed to be deducted from the payable tax. Usually donations made to government relief funds or government charitable institutions are 100% tax deductible under most tax laws. And the contributions made to private charitable institutions or NGOs are partially deductible out of the total tax.
But do note that all donations are not eligible for deductions. Deductions made to the prescribed funds by the law qualify as deductions.
- Show calculations
After you have provided the income and expenses, or any other deductible amount such as government or private donations if any, any significant loss, or tax deductible insurances, it’s now time to calculate the taxable income. To calculate the taxable income you just have to subtract the expenditure and other deductibles from the total revenue. It is important to calculate the tax and show the derived amount transparently.
You can always submit your assignment as soon as it’s been completed, but this way you might miss some small mistakes that could have been easily taken care of with revision. That’s why make sure to revise thoroughly before submitting. Review and revision becomes even more important when the assignment has any part that deals with mathematical calculations and implementation of formulas. These are a few points that are followed while filing a tax. And as taxation questions are made with the objective to give the students a practice of how they will actually be filing for taxes in the future, these points should be followed while attempting the question to gain good marks. But if you still find it hard to tackle the problem or feel like you cannot finish the assignment before the deadline. There are many online taxation homework help to complete your assignment work for you, so that you can still get good grades without having to deal with the frustrating and tiresome formulas. Learn more