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What is Tax || Direct Tax and Indirect tax

tax Definition

Tax Deduction meaning ||"Direct Tax and Indirect tax"-Tax Is An Amount Which deduction by the government for public service in the form of  Direct Tax and Indirect Tax.

An Amount which is paid by normal people to the government for public service.

“A fine is a tax for doing something wrong.
But A Tax is a fine for doing something right”

Before know about what is taxation, first of all, we will know about the history of taxation in India.

History of Tax in India

Tax in India is rooted in the period of many Smriti and Zarathustra present. 

Indian taxes system based on this ancient tax system which was based on the theory of maximum social welfare.

Tax :

 There are most of the people in the country who pay taxes continuously every year to the government. 

But they don’t know about taxation what is taxation why people paying this to the government.

Taxation is the government needs some funds to carry out public expenditure to conduct government activities?

 It needs financial contributions from the public for running the country. 

The rate of paying tax is decided by the government for every people according to their occupation and annual income.

In India, the taxation is handled by central or state government or local bodies.

Advantages of paying taxes

1. Money is utilized for pubic services.

2. for the better future of the country.

3. The government can give public services.

Types of Taxes:

       1.Direct Tax

       2. Indirect Tax

       Direct Tax

The name suggested that you paid this taxation directly.

 It can't be transferred to anyone. It is paid directly. 

There are some types of direct taxation.

     1.  Income Taxation

     2.  Wealth Taxation

     3.  Expenditure Taxation

       Income Tax

The Income-tax Act 1961 is responsible to regulate the income tax in India.

 This Is regulated by Income of the people it can be like salary, business, income from the property, investments, etc. 

All the rate of taxation is decided by the Income-tax Department. 

The Benefits of this return in the form of insurance premiums and fixed deposits.

Wealth Tax:

The wealth tax has been released from 1 April 2015. According to the wealth act of 1951 was responsible for the net wealth of an individual company. 

It was a certain charge amounting to 15% to those who earn more than 1 crore annually. 

and also it applies to the com[any who earn a revenue of more than 10 crores.

Expenditure Tax

The expenditure taxation act 1987  is concerned with the expenses that individuals when the people avail for the services of a restaurant or hotel. 

This tax is also applied in the Jammu & Kashmir. 

This Taxation is also applicable for INR 3000 in a hotel and restaurant.

Indirect Tax

Now let's move on the Indirect Tax before announcing the GST Act in India there are multiple types of taxes that are applicable to take services some examples like Entertainment Tax, Road tax, electricity tax, License Tax, and many more. 

But after Announcing the GST Act There Is Only One Tax Which is GST or Goods and Services Taxation. 

Indirect tax is imposed on all goods and services. 

It is concerned by the collect the source that sells the product. 

These taxes are added to the price of the services and products, the rate of tax is increased if the cost of the product is increased.

Other Taxes:

There are some other taxes are avail in the country which is listed below

Professional Tax

This Tax is employment tax it is levied by the government of India on those who earn in the form of the salaried or by a profession like lawyers, Doctors, Charted Accountants. 

The of the tax is different in all states.

Property Tax

This Taxation is gone by many likes Municipal Tax or real estate. 

This tax is levied by local municipal bodies for maintaining civil services.

Stamp Duty Registration fees Tax

A stamp duty, transfer, registration tax is the supplements f the property tax. 

It is an additional charge when any person buying the property.

Entry Tax

Entry taxation is collected by all states' borders like Uttar Pradesh. Assam, Gujrat, Madhya Pradesh, and Delhi, etc. by charging a 5.5-10% tax on all the items that enter the state through its e-commerce establishments.

So thank You so much for reading the article about the taxation hope you all like it.

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Click here for Comments
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