Income – tax and its type - Paper

Income – tax

INTRODUCTION

The Taxation Structure of the country can play a very important role in the working of our economy.. While designing the Taxation structure it has to be seen that it is in conformity with our economic and social objective
On the recommendation of Law Commission & Direct Taxes Enquiry Committee and in consultation with Law Ministry a Bill was framed. This Bill was referred to a select committee and finally passed in Sept. 1961. This Act came into force from 1st.April 1962 in whole of the country.
Income Tax Act, 1961 is a comprehensive Act and consists of 298 Sections. Sub-Sections running into thousands Schedules, Rules, Sub-Rules, etc. and is supported by other Acts and Rules. This Act has been amended by several amending Acts since 1961. The Annual Finance Bills presented to Parliament along with Budget make far-reaching amendments in this Act every year.

TYPES OF TAX

Direct Taxes

Indirect Taxes

Direct Taxes

This kind of tax is named so as such a tax is directly paid to the Union Government of India. As per a survey, the Republic of India has witnessed a consistent rise in the collection of such taxes over a period of the past years. The visible growth in these tax collections as well as the rate of taxes reflects a healthy economical growth of India. Besides that, it even portrays the compliance of high tax along with better administration of taxation. To name a few of the direct taxes, which are imposed by the India Government are:

Banking Cash Transaction Tax
Corporate Tax
Capital Gains Tax
Double Tax Avoidance Treaty
Fringe Benefit Tax
Securities Transaction Tax
Personal Income Tax
Tax Incentives

Indirect Taxes

As opposed to the direct taxes, such a tax in the nation is generally levied on some specified services or some particular goods. An indirect tax is not levied on any particular organisation or an individual. Almost all the activities, which fall within the periphery of the indirect taxation, are included in the range starting from manufacturing goods and delivery of services to those that are meant for consumption. Apart from these, the varied activities and services, which are related to import, trading etc. are even included within this range. This wide range results in the involvement as well as implementation of some or other indirect tax in all lines of business.

Usually, the indirect taxation in the Indian Republic is a complex procedure that involves laws and regulations, which are interconnected to each other. These taxation regulations even include some laws that are specific to some of the states of the country. The regime of indirect taxation encompasses different kinds of taxes. The organizations offer services in all or most of the related fields, some of which are as follows:

Anti Dumping Duty
Custom Duty
Excise Duty
Sales Tax
Service Tax
Value Added Tax or V. A. T.

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Direct Taxes

This kind of tax is named so as such a tax is directly paid to the Union Government of India. As per a survey, the Republic of India has witnessed a consistent rise in the collection of such taxes over a period of the past years. The visible growth in these tax collections as well as the rate of taxes reflects a healthy economical growth of India. Besides that, it even portrays the compliance of high tax along with better administration of taxation.
some of direct which are imposed by union government
       Banking Cash Transaction Tax
     Corporate Tax
                    Capital Gains Tax
   Double Tax Avoidance Treaty
Fringe Benefit Tax
                     Securities Transaction Tax
                       Personal Income Tax
   Tax Incentives

Indirect Taxes

                   As opposed to the direct taxes, such a tax in the nation is generally levied on some specified services or some particular goods. An indirect tax is not levied on any particular organisation or an individual. Almost all the activities, which fall within the periphery of the indirect taxation, are included in the range starting from manufacturing goods and delivery of services to those that are meant for consumption. Apart from these, the varied activities and services, which are related to import, trading etc. are even included within this range These taxation regulations even include some laws that are specific to some of the states of the country. The regime of indirect taxation encompasses different kinds of taxes. :
   Anti Dumping Duty
   Custom Duty
   Excise Duty
Sales Tax
Service Tax
Value Added Tax or V. A. T.

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