Taxes in India

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There are two types of taxes in India.

  • Direct Taxes
  • Indirect Taxes

Direct Taxes: These taxes are levied directly on an entity or an individual and cannot be transferred onto anyone else. Direct taxes, which are imposed by the Government of India, are:

  • Income TaxA tax paid by individuals to the government, the amount of w... More : Income taxA tax paid by individuals to the government, the amount of w... More, this taxA fee imposed by a government on personal or corporate incom... More is mostly known to everyone. Every individual whose total income exceeds taxable limit has to pay income taxA tax paid by individuals to the government, the amount of w... More based on prevailing rates applicable time to time.
  • Capital Gains TaxTax payable on profits made on the sale of certain types of ... More:This is a taxA fee imposed by a government on personal or corporate incom... More that is payable whenever you receive a sizable amount of money. It could be from an investmentMoney or capital that is invested in a business or in an acc... More or from the sale of a property. It is usually of two types, short term capitalThe net worth of a business, including assets, cash, propert... More gains from investments held for less than 36 months and long term capitalThe net worth of a business, including assets, cash, propert... More gains from investments held for longer than 36 months.
  • Securities Transaction TaxA fee imposed by a government on personal or corporate incom... More:This taxA fee imposed by a government on personal or corporate incom... More is added to the priceThe amount of money required to purchase something or to bri... More of security during the transaction itself, hence you cannot avoid (save) it. As this taxA fee imposed by a government on personal or corporate incom... More amount is very low people do not notice it much.
  • Perquisite TaxA fee imposed by a government on personal or corporate incom... More:Perquisites are all the perks or privileges that employers may extend to employees. These privileges may include a house provided by the company or a car for your use, given to you by the company. These perks are not just limited to big compensation like cars and houses, they can even include things like compensation for fuel or phone bills.
  • Corporate TaxA fee imposed by a government on personal or corporate incom... More: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.

InDirect Taxes: By definition, indirect taxes are those taxes that are levied on goods or services. They differ from direct taxes because they are not levied on a person who pays them directly to the government, they are instead levied on products and are collected by an intermediaryA mediator or agent who negotiates between two parties who a... More, the person selling the productThe result of a manufacturing or natural process (such as fo... More. InDirect taxes, which are imposed by the Government of India, are:

  • Sales TaxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More :Sales taxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More charged on the sales of movable goods. Sale taxA fee imposed by a government on personal or corporate incom... More on Inter State sale is charged by Union Government, while sales taxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More on intra-State sale (sale within State) (now termed as VAT) is charged by State Government.
  • Service TaxA fee imposed by a government on personal or corporate incom... More:Like sales taxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More is added to the priceThe amount of money required to purchase something or to bri... More of goods sold in India, so is service taxA fee imposed by a government on personal or corporate incom... More added to services provided in India. In the reading of the budgetAllocation of funds or the estimation of costs for a departm... More 2015, it was announced that the service taxA fee imposed by a government on personal or corporate incom... More will be raised from 12.36% to 14%. It is not applicable on goods but on companies that provide services and is collected every month or once every quarter based on how the services are provided.
  • Value Added TaxA fee imposed by a government on personal or corporate incom... More:TaxA fee imposed by a government on personal or corporate incom... More imposed by Central government on sale of goods is called as Sales taxKnown as VAT (Value Added Tax) in the UK. A tax based on the... More same is called as Value added taxA fee imposed by a government on personal or corporate incom... More by state government.VAT is additional to the priceThe amount of money required to purchase something or to bri... More of goods and passed on to us as buyer (end user).
  • Custom duty & Octroi (On Goods):When you purchase anything that needs to be imported from another country, a charge is applied on it and that is the customs dutyA tax which must be paid on imported, and sometimes exported... More. It applies to all the products that come in via land, sea or air. Even if you bring in products bought in another country to India, a customs dutyA tax which must be paid on imported, and sometimes exported... More can be levied on it.
  • Excise Duty: An excise or excise duty is a type of taxA fee imposed by a government on personal or corporate incom... More charged on goods produced within the country. This is opposite to custom duty which is charged on bringing goods from outside of country.
  • Anti Dumping Duty: Dumping is said to occur when the goods are exported by a country to another country at a priceThe amount of money required to purchase something or to bri... More lower than its normal value. This is an unfair tradeThe buying and selling or exchange of goods and services. Th... More practice which can have a distortive effect on international tradeThe buying and selling or exchange of goods and services. Th... More.

Other Taxes :

  • Professional TaxA fee imposed by a government on personal or corporate incom... More: Professional TaxA fee imposed by a government on personal or corporate incom... More, or employment taxA fee imposed by a government on personal or corporate incom... More, is another form of taxA fee imposed by a government on personal or corporate incom... More levied only by state governments in India. According to professional taxA fee imposed by a government on personal or corporate incom... More norms, individuals earning income or practicing a profession such as a doctor, lawyer, chartered accountant, or company secretaryA person who works for another person , usually in an office... More etc. are required to pay this taxA fee imposed by a government on personal or corporate incom... More.
  • Dividend distribution TaxA fee imposed by a government on personal or corporate incom... More: Dividend distribution taxA fee imposed by a government on personal or corporate incom... More is the taxA fee imposed by a government on personal or corporate incom... More imposed by the Indian Government on companies according to the dividend paid to a company’s investors. Dividend amount to investor is taxA fee imposed by a government on personal or corporate incom... More free.
  • Municipal TaxA fee imposed by a government on personal or corporate incom... More: Also known as Property TaxA fee imposed by a government on personal or corporate incom... More or Real EstateAlso called Realty. Property consisting of land with permane... More TaxA fee imposed by a government on personal or corporate incom... More, this is one of the taxes levied by local municipal bodies of every city. These taxes are levied in order to provide and maintain the for basic civic services.
  • Entertainment TaxA fee imposed by a government on personal or corporate incom... More: TaxA fee imposed by a government on personal or corporate incom... More is also applicable on Entertainment; this taxA fee imposed by a government on personal or corporate incom... More 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.
  • Stamp DutyCalled Stamp Tax in the US. A stamp which must be put onto c... More, Registration Fees, Transfer TaxA fee imposed by a government on personal or corporate incom... More: Stamp dutyCalled Stamp Tax in the US. A stamp which must be put onto c... More, registration fees, and transfer taxes are collect as a supplement of property taxA fee imposed by a government on personal or corporate incom... More.
  • 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 taxA fee imposed by a government on personal or corporate incom... More payable.
  • Gift TaxA tax payable on gifts over a certain annual value made duri... More: When an individual receives a gift from another person. It is considered to be a part of their income generated through “other sources” and the relevant taxA fee imposed by a government on personal or corporate incom... More is levied.
  • Wealth TaxA fee imposed by a government on personal or corporate incom... More: Wealth TaxA fee imposed by a government on personal or corporate incom... More was another taxA fee imposed by a government on personal or corporate incom... More levied by the government, which was charged based on the net wealth of the assessee. Wealth taxA fee imposed by a government on personal or corporate incom... More is chargeable with respect to the net wealth of a property.
  • Toll TaxA fee imposed by a government on personal or corporate incom... More: At some of places you need to pay taxA fee imposed by a government on personal or corporate incom... More in order to use infrastructure (road, bridge etc.) build from your money given to government as TaxA fee imposed by a government on personal or corporate incom... More. This taxA fee imposed by a government on personal or corporate incom... More is called as toll taxA fee imposed by a government on personal or corporate incom... More.
  • Swachh Bharat Cess: This is a cess imposed by the government of India and was started from 15 November 2015. This taxA fee imposed by a government on personal or corporate incom... More is applicable on all taxable services and the cess currently stands at 0.5%. Swachh Bharat cess is levied over and above the 14% service taxA fee imposed by a government on personal or corporate incom... More that is prevalent in the present times.
  • Krishi Kalyan Cess: This cess is introduced in order to extend welfare to the farmers. The effective rate of Krishi Kalyan Cess is 0.5%. This taxA fee imposed by a government on personal or corporate incom... More will be imposed on all taxable services.
  • Dividend TaxA fee imposed by a government on personal or corporate incom... More: 10% additional taxA fee imposed by a government on personal or corporate incom... More imposed on dividend income above 10 Lac is called Dividend TaxA fee imposed by a government on personal or corporate incom... More.
  • Infrastructure Cess: This cess is another taxA fee imposed by a government on personal or corporate incom... More brought into effect from the 1st of June 2016. Under this taxA fee imposed by a government on personal or corporate incom... More, a cess of 1% is applicable on petrol/LPG/CNG-driven motor vehicles which are 4 meters or less in length and 1200cc or less in engine capacity.
  • Entry TaxA fee imposed by a government on personal or corporate incom... More: All items entering in the state boundaries ordered via E-commerceElectronic Commerce. The buying and selling of products and ... More are under this taxA fee imposed by a government on personal or corporate incom... More boundary.