educratsweb logo


TYPES OF TAXES IN INDIA

TYPES OF TAXES IN INDIA

 I. DIRECT TAXES :-
These types of taxes are directly imposed & paid to Government of India. There has been a steady rise in the net Direct Tax collections in India over the years, which is healthy signal. Direct taxes, which are imposed by the Government of India, are:
 (1) Income Tax :-
Income tax, this tax is mostly known to everyone. Every individual whose total income exceeds taxable limit has to pay income tax based on prevailing rates applicable time to time.
 (2) Capital Gains Tax :-
Capital Gain tax as name suggests it is tax on gain in capital. If you sale property, shares, bonds & precious material etc. and earn profit on it within predefined time frame you are supposed to pay capital gain tax. The capital gain is the difference between the money received from selling the asset and the price paid for it.
 (3) Securities Transaction Tax :-
A lot of people do not declare their profit and avoid paying capital gain tax, as government can only tax those profits, which have been declared by people. To fight with this situation Government has introduced STT (Securities Transaction Tax ) which is applicable on every transaction done at stock exchange. That means if you buy or sell equity shares, derivative instruments, equity oriented Mutual Funds this tax is applicable.
 (4) Perquisite Tax :-
Earlier to Perquisite Tax we had tax called FBT (Fringe Benefit Tax) which was abolished in 2009, this tax is on benefit given by employer to employee. E.g If your company provides you non-monetary benefits like car with driver, club membership, ESOP etc. All this benefit is taxable under perquisite Tax.
 (5) Corporate Tax :-
Corporate Taxes are annual taxes payable on the income of a corporate operating in India. For the purpose of taxation companies in India are broadly classified into domestic companies and foreign companies.
 II. INDIRECT TAXES :-
 (6) Sales Tax :-
Sales tax charged on the sales of movable goods. Sale tax on Inter State sale is charged by Union Government, while sales tax on intra-State sale (sale within State) (now termed as VAT) is charged by State Government.
 (7) Service Tax :- 
Most of the paid services you take you have to pay service tax on those services. This tax is called service tax. Over the past few years, service tax been expanded to cover new services.
 (8) Value Added Tax :-
The Sales Tax is the most important source of revenue of the state governments; every state has their respective Sales Tax Act. The tax rates are also different for respective states.
 (9) Custom duty & Octroi (On Goods) :-
Custom Duty is a type of indirect tax charged on goods imported into India. One has to pay this duty , on goods that are imported from a foreign country into India. This duty is often payable at the port of entry (like the airport). This duty rate varies based on nature of items.
 (10) Excise Duty :-
An excise or excise duty is a type of tax charged on goods produced within the country. This is opposite to custom duty which is charged on bringing goods from outside of country. Another name of this tax is CENVAT (Central Value Added Tax).
 (11) Anti Dumping Duty :-
Dumping is said to occur when the goods are exported by a country to another country at a price lower than its normal value. This is an unfair trade practice which can have a distortive effect on international trade. In order to rectify this situation Central Govt. imposes an anti dumping duty not exceeding the margin of dumping in relation to such goods.
 III. OTHER TAXES :-
 (12) Professional Tax :-
If you are earning professional you need to pay professional tax. Professional tax is imposed by respective Municipal Corporations. Most of the States in India charge this tax.
 (13) Dividend distribution Tax :-
Dividend distribution tax is the tax imposed by the Indian Government on companies according to the dividend paid to a company’s investors. Dividend amount to investor is tax free. At present dividend distribution tax is 15%.
 (14) Municipal Tax :-
Municipal Corporation in every city imposed tax in terms of property tax. Owner of every property has to pay this tax. This tax rate varies in every city.
 (15) Entertainment Tax :-
Tax is also applicable on Entertainment; this tax is imposed by state government on every financial transaction that is related to entertainment such as movie tickets, major commercial shows exhibition, broadcasting service, DTH service and cable service.
 (16) Stamp Duty, Registration Fees, Transfer Tax :- If you decide to purchase property than in addition to cost paid to seller. You must consider additional cost to transfer that property on your name.
 (17) Education Cess , Surcharge :-
Education cess is deducted and used for Education of poor people in INDIA. All taxes in India are subject to an education cess, which is 3% of the total tax payable. The education cess is mainly applicable on Income tax, excise duty and service tax.
 (18) Gift Tax :-
If you receive gift from someone it is clubbed with your income and you need to pay tax on it. This tax is called as gift tax.
 (19) Wealth Tax :-
Wealth tax is a direct tax, which is charged on the net wealth of the assessee. Wealth tax is chargeable in respect of Net wealth corresponding to Valuation date.Net wealth means all assets less loans taken to acquire those assets. Wealth tax is 1% on net wealth exceeding 30 Lakhs (Rs 3,000,000). So if you have more money, assets you are liable to pay tax.
 (20) Toll Tax :-
At some of places you need to pay tax in order to use infrastructure (road, bridge etc.) build from your money given to government as Tax. This tax is called as toll tax. This tax amount is very small amount but, to be paid for maintenance work and good up keeping.

TYPES OF TAXES IN INDIA
Contents shared By educratsweb.com

British Conquest of India - Modern Indian History | 7-Hour Marathon | Crack UPSC CSE/IAS #Educational - Published on Friday July 10 2020
if you have any information regarding Job, Study Material or any other information related to career. you can Post your article on our website. Click here to Register & Share your contents.
For Advertisment or any query email us at educratsweb@gmail.com

RELATED POST
1 बिहार महादलित विकास मिशन की योजनाएँ
2 One platform where you can lodge your grievances for quick redress
3 High Courts of India
4 National Youth Day
5 Cybercrime Reporting Portal
6 All Nobel Prizes Between 1975 and 1998
7 बिहार किसान सम्मान निधि ऑनलाइन आवेदन | पंजीकरण, रजिस्ट्रेशन फॉर्म 2019, स्टेटस देखें | PM Kisan Bihar
8 Useful Toll Free Numbers
9 What are grade pay, basic pay, pay scale, allowances, DA, HRA, perks in salary system in India?
10 Helpline Services Numbers
11 Bihar
12 World Homeopathy Day: April 10
13 INDIAN POLITY PRACTICE QUESTIONS
14 First in India Female Personalities
15 List of Central Universities in India
16 IGNOU B.Ed. Entrance Exam General Awareness Solved Questions
17 One Nation One Ration Card Apply Online Format – Aadhar-Rashan Card Linking by Central Govt.
18 One Nation One Ration Card Apply Online Format – Aadhar-Rashan Card Linking by Central Govt.
19 List of Chief Election Commissioners of India Since 1950 to 2019
20 All Nobel Prizes Between 1947 and 1975
21 हिन्दी पत्रकारिता दिवस की हार्दिक शुभकामनाएं … May 30
22 Employees State Insurance Corporation Upper Division Clerks Exam 2012 General Knowledge Solved Paper
23 Important Days in India
24 Insurance Related General Knowledge Practice Questions
25 चन्द्रवाक्य
26 TYPES OF TAXES IN INDIA
27 Geography Made Easy
28 16 अप्रैल का इतिहास, बम्बई से ठाणे के बीच चली थी पहली छुक छुक गाड़ी
29 8 KEY DEVELOPMENTS IN INDIA
30 Science and Technology Made Easy
31 Indian States General Knowledge Questions
32 PM Gram Sadak Yojana Phase 3 – Govt. Approves Rural Road Programme 3rd Phase Launch
33 Indian National Movement Date Wise Snippets
34 List of State Birds of India
35 Chhattisgarh Objective General Knowledge Questions
36 All Nobel Prizes Between 1998 and 2019
37 Famous Scientists and their Inventions List
38 GENERAL KNOWLEDGE PRACTICE QUESTIONS
39 Index Numbers of Wholesale Price in India (Base: 2011-12=100) Review for the month of March,2020
40 History Made Easy
41 FIRST IN INDIA
42 All Nobel Prizes Between 1912 and 1947
43 Uttar Pradesh Subordinate Service Selection Commission (UPSSSC) Amin and Ahlmad Recruitment Exam 2016 Solved Paper
44 RAJASTHAN CIRCLE PA/SA EXAM GENERAL AWARENESS SOLVED PAPER (EXAM HELD ON 27/04/2014)
45 Bihar SSC Graduate Level Preliminary Exam General Knowledge Solved Paper (Exam Held on 16-2-2015)
46 Fathers of Different Fields
47 Indian Towns Associated with Industries or Factories
48 Economy Made Easy
49 Famous Books and Authors
50 Religions in India
We would love to hear your thoughts, concerns or problems with anything so we can improve our website educratsweb.com ! visit https://forms.gle/jDz4fFqXuvSfQmUC9 and submit your valuable feedback.
Save this page as PDF | Recommend to your Friends

http://educratsweb(dot)com http://educratsweb.com/content.php?id=1777 http://educratsweb.com educratsweb.com educratsweb