Conditions imposed on exemptions




Exemption from tax often requires that certain conditions be met.

Comments

Post a Comment

Popular posts from this blog

Exempt income

Most income tax systems exclude certain classes of income from the taxable income base. Such exclusions may be referred to as exclusions or exemptions. Systems vary highly. Among the more commonly excluded items are: Income earned outside the taxing jurisdiction. Such exclusions may be limited in amount. Interest income earned from subsidiary jurisdictions. Income consisting of compensation for loss. The value of property inherited or acquired by gift. Some tax systems specifically exclude from income items that the system is trying to encourage. Such exclusions or exemptions can be quite specific or very general. citation needed Among the types of income that may be included are classes of income earned in specific areas, such as special economic zones, enterprise zones, etc. These exemptions may be limited to specific industries. As an example, India provides SEZs where exporters of goods or providers of services to foreign customers may be exempt from income taxes and customs du...
Read more

Exempt individuals

Certain classes of persons may be granted a full or partial tax exemption within a system. Common exemptions are for veterans, clergymen or taxpayers with children (who can take "dependency exemption" for each qualifying dependent who has lived with the taxpayer. The dependent can be a natural child, step-child, step-sibling, half-sibling, adopted child, eligible foster child, or grandchild, and is usually under age 19, a full-time student under age 24, or have special needs). The exemption granted may depend on multiple criteria, including criteria otherwise unrelated to the particular tax. For example, a property tax exemption may be provided to certain classes of veterans earning less than a particular income level. Definitions of exempt individuals tend to be complex. In 1 Samuel 17:25 in the Hebrew Bible, King Saul includes tax exemption as one of the rewards on offer to whoever comes forward to defeat the Philistine giant Goliath. In the Ottoman Empire, tax breaks for d...
Read more

Specific monetary exemptions

Some jurisdictions allow for a specific monetary reduction of the tax base, which may be referred to as an exemption. For example, the U.S. Federal and many state tax systems allow a deduction of a specified dollar amount for each of several categories of "personal exemptions". Similar amounts may be called "personal allowances". Some systems may provide thresholds at which such exemptions or allowances are phased out or removed.
Read more