Page 918 : INCOME TAX — INDIA
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vertical height X A be X2 then by the conservation of energy F2 X2 = F1 X1
- or F2 / F1 = X1 / X2 = 1sin θ
where θ=angle A O X which measures the steepness of the inclined plane. The mechanical advantage of the inclined plane is, therefore, 1⁄sin θ. This statement is sometimes called the law of the inclined plane.
In′come Tax. The U. S. Tariff (q. v.) of 1913 imposes a tax of from 1% (“normal”) to 6% (“additional”) payable to internal revenue collector for each district, on incomes above $3,000, rate increasing with income up to $500,000. Exact interpretation of the law, as in the case of other laws, will depend to some extent on individual circumstances which differ greatly, but the following analysis will enable anyone to answer the great majority of important questions that arise:
Married couples are entitled to an aggregate exemption of $4,000. The other exemptions are: Salaries of president, federal judges and employes of states and political divisions thereof; stock dividends, as these have already paid the Corporation tax; interest on obligations of the U. S., or political subdivisions thereof; proceeds of life insurance policies.
Net profits are determined in the usual way, by deducting expenses, other than living expenses, bad debts and other losses. The customary deduction for depreciation of property, stock, etc., in each line of business, is also allowed.
On incomes above $20,000 and not exceeding $50,000 the “additional” tax is 1% and so up to incomes of $500,000 and above.
Example. A tax on bachelor’s income of $600,000 (limitations within which additional taxes are levied are shown in parentheses):
| Normal Tax (1%) on $600,000 (less $3,000) . . . . . | $ 5,970 |
| $30,000 ($20,000 to $50,000) at 1% additional . . . | 300 |
| $25,000 ($50,000 to $75,000) at 2% additional . . . | 500 |
| $25,000 ($75,000 to $100,000) at 3% additional . . | 750 |
| $150,000 ($100,000) to $250,000) at 4% additional | 6,000 |
| $250,000 ($250,000 to $500,000) at 5% additional | 12,000 |
| $100,000 (income above $500) at 6% additional | 6,000 |
| Total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $32,020 |
Returns (written and sworn) giving gross income and exemptions must be made between January 1 and March 1 for preceding calendar year on forms furnished on application by collector. Banks also usually furnish forms to depositors. Only persons having taxable incomes are required to make returns except as indicated in next two paragraphs.
Tenants and all other persons or organizations paying salaries, rent, interest or other forms of income of individuals in excess of $3,000 (except proceeds from life insurance contracts other than annual interest payments) must withhold “normal” tax (1%) and turn it over to the government unless landlord or other payee files sworn statement with tenant or other payer that his income, or any part of it, is exempt. Payer must make return showing portion of income of each person from which the “normal” tax has been thus withheld.
Incomes from bonds and similar corporate obligations regardless of amount, must be withheld at source unless payee attaches exemption certificate. “Normal” taxes only are collected “at source;” “additional” taxes from person who receives the income. Incomes irregular in amount (as those of commission agents, farmers, merchants and from fees) are not taxable “at source.”
Penalties. For false statements, failure to return or to pay taxes by times specified heavy penalties are provided.
Japan, England, Germany, Holland, Italy, Austria, Denmark, Switzerland, Australia and New Zealand have income tax laws.
In′dia, a large region of southern Asia, probably the most populous country in the world. It has long been celebrated for its riches and valuable natural products. Its people were early civilized, and exhibit remarkable taste and skill in the manufacture of the most costly merchandise. India proper, the central peninsula of southern Asia, is about 1,900 miles long and 1,600 wide, covering 1,766,642 square miles. The British provinces occupy 1,097,901 square miles, while 691,253 square miles are taken up by the feudatory or native states. The population, in 1911, of the British area was 244,267,542, and of the native states, 70,864,995, or a total for all of 315,132,531. The chief occupation of the people is agriculture, which employs about 192 million people. The principal towns (including cantonments), with their populations, in 1911 were Calcutta (with suburbs), 1,222,300; Bombay (979,443); Madras (518,660); Haiderabad (500,623); Lucknow (259,798); Rangoon (293,316); Benares (203,804); Delhi (232,837); Lahore (228,687); Cawnpore (178,557); and Agra (185,449).
Surface. Its physical features are so varied and interesting, that its surface has been called “an epitome of the whole earth.” There are lofty mountains, covered with perpetual snow; broad and fertile plains, bathed in tropical sunshine; arid wastes and impenetrable forests. Its great natural divisions are the sub-Himalayan countries, the plain of the Ganges, the plain of the Indus, the highlands of northern Hindustan and the southern peninsular portion. The mountain system forms a connected whole. The Himalayan (meaning the abode of snow) consists of a chain some 1,500 miles in length, in which the peaks rise often from 20,000 to 30,000 feet above the sea, covered always with a snowy crown.
Drainage and Climate. The rivers are the Indus in the northwest, with a course of 900 miles; after starting from the Himalayas and draining, with its tributaries, 300,000 square miles it empties into the Arabian Sea; in the northeast is the Ganges, with the Jumna and other streams, which form part of the Bengal delta and drain about 500,000 square miles. Other large rivers drain the central region. The country as a whole has three well-marked seasons — the cool, the hot and the rainy. The rainy season falls in the middle of summer, the moist, hot months following. The winter is the pleasant period of the year. The central tableland is cool, dry and healthy.
Animals. The animals domesticated are first the cattle — cows, buffaloes and oxen; the last two do the work of agriculture. The bull and cow are sacred animals to the Hindus, and are never killed for food. The
