Indian Taxes are the largest source of income for the government. This money (Revenue) is deployed for various purposes and project for the development of the Nation. Taxes are determined by the Central and State Governments along with Local Authorities. The Central government of India levies taxes such as income Tax, TDS and GST to levy Land Revenue and Stamp Duty etc. Government has to perform many functions to discharge their duties like Infrastructure Development, Health, Education, Removal of Poverty, Defence of the Country, Maintenance of Law and Orders etc. To meet these huge amount of Capital is required therefore the Government collects taxes, fess, surcharges and fees.
Tax in India is divided into major two categories.
- Direct Tax
- Indirect Tax
Direct Tax
A Tax that is paid directly by an Individual or Organization (Assesse) to the imposing entity (Government).A Taxpayer pays a direct tax to government through Income tax, TDS, Purchase Real Property Tax, Personal Property Tax or Taxes on Assets. A Direct tax cannot be shifted to another Individual or entity. The individual or organization upon which the tax is levied is responsible for the fulfillment of the tax payment.
Indirect Tax
Indirect tax is a tax on Goods or Services that increases the price of a good or services so an impact consumer are actually paying the tax Indirectly by paying more on the products.
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