TAXES-
Taxes are the amount of
money government impose on an individual or corporates directly or
indirectly so as to generate revenue or to keep in check any black money
activities in India.
THERE
ARE TWO CATEGORIES OF TAXES IN INDIA, THESE ARE –
DIRECT TAXES-
· These taxes are
levied directly on the presons.
· These
contributes major chunk of the total taxes collected in India.
Some of the direct taxes are-
INCOME TAX-
This is a type of tax levied on the
individuals whose income falls under the taxable category (2.5 lakhs per
annum). The Indian Income Tax
Department is governed by CBDT and is part of the Department of Revenue under
the Ministry of Finance, Govt. of India. Income tax is a key source of funds
that the government uses to fund its activities and serve the public.
Corporate Income Tax –
This is the tax levied on the profits a
corporate house earned in a year. In
India, the Corporate Income tax rate is a tax collected from companies. Its
amount is based on the net income companies obtain while exercising their
business activity, normally during one business year.
Securities Transaction Tax-
Introduced in 2004, STT is levied on the sale
and purchase of equities. more clearly, The income a individual generate
through the securities market be it through reseling of shares or through
debentures is taxed by the government of India and the same tax is called as
Securities Transaction Tax.
Banking Cash Transaction Tax -
A bank transaction tax is a tax levied on
debit (and/or credit) entries on bank accounts. It can be automatically
collected by a central counterparty in the clearing or settlement process.
INDIRECT TAXES-
You go to a super market to buy goods or to a
restaurant to have a mouthful there at the time of billing you often see
yourself robbed by some more amount than what you enjoyed of , these extra
amounts are indirect taxes, which are collected by the intermediaries and when
govt tax the income of the intermediaries this extra amount goes in to
government’s kitty, hence as the name suggests these are levied indirectly on
common people.
Some examples of Indirect Taxes are-
Value Added Tax-
When we pay an extra amount of price for the
goods and services we consume or buy, that extra amount of money is called as
VAT. This taxes is about to be replaced by Goods and Services Tax.
Current rate-
On agricultural goods-4%
On luxury items-
20%
Customs Duty –
Customs Duty is a type of indirect tax levied
on goods imported into India as well as on goods exported from India. In India, the basic law for levy and
collection of customs duty is Customs Act, 1962. It provides for levy and
collection of duty on imports and exports.
Excise Duty –
An excise or excise tax is an inland tax on
the sale, or production for sale, of specific goods or a tax on a good produced
for sale, or sold, within a country or licenses for specific activities.
Excises are distinguished from customs duties, which are taxes on import.
Service Tax-
Service Tax is a tax imposed by Government of
India on services provided in India. The service provider collects the tax and
pays the same to the government. It is charged on all services except the
services in the negative list of services.
Current rate- 12.36%
Acronyms Corners-
CBDT- Central Board of Direct Taxes
CBEC- Central Board of Excise and Customs
FBT- Fringe Benefits Tax
STT- Securities Transaction Tax
GST- Goods and Services Tax
VAT- Value Added Tax
