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Home >>India Tax
India Tax
India Tax is regulated and administered by the Ministry of Finance under the Government of India. Taxation is the government's main source of revenue and several types of taxes are applied to different categories of the population.
The following is a brief description of some of the taxes that are levied in India by the government:
Income Tax
The Income Tax Act of 1961 stipulates that any person who qualifies as an assessee and whose gross income is more than the exemption limit is required to pay Income Tax in accordance with the rates indicated by the Finance Act.
Corporate Tax
India Corporate Tax is the tax charged on the profits earned by associations and companies by several jurisdictions. The rate of Corporate Tax in India depends on whether the profits have been passed on to the shareholders or not.
Value Added Tax
This is the tax that a manufacturer needs to pay while purchasing raw materials and a trader needs to pay while purchasing goods. VAT is eventually expected to replace Sales Tax. All goods and services provided by business individuals and companies come under the ambit of VAT.
Capital Gains Tax
A Capital Gain can be defined as an any income generated by selling a capital investment (business stocks, paintings, houses, family business, farmhouse, etc.). The 'gain' here is the difference between the price originally paid for the investment and money received upon selling it, and is taxable.
Service Tax
As per the Finance Act of 1994, all service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India.
Fringe Benefit Tax
As per Section 115WB of the Finance Bill, expenses incurred for employees, by an employer (individual/company/local authority/trader) for purposes of entertainment, gifts, telephone, clubbing, festivals etc., will be treated as Fringe Benefits and will be taxed.
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