TAX STRUCTURE IN INDIA

Taxes are the amount of money govt imposes on an individual or corporates directly or indirectly so as to generate
revenue or to keep in check any black money activities in India.

The tax on incomes, customs duties, central excise and service tax are levied by the Central Government. The stateGovernment
levies agricultural income tax (income from plantations only), Value Added Tax (VAT)/ Sales Tax, Stamp Duty, State Excise,
Land Revenue, Luxury Tax and Tax On Professions. The local bodies have the authority to levy tax on properties, octroi/entry tax and tax for utilities like water supply, drainage etc.

DIRECT TAXES-
These taxes are levied directly on the persons.These contributes
major chunk of the total taxes collected in India.

INCOME TAX-
This is a type of tax levied on the individuals whose income falls
under the taxable category (2.5 lakhs per annum). The Indian Income Tax Department is governed by CBDT and is
part of the Department of Revenue under the Ministry of Finance, Govt. of India.

Corporate Income Tax –
This is the tax levied on the profits a corporate house earned in a year. In India, the Corporate Income tax rate is a tax collected from companies.

Securities Transaction Tax-
Introduced in 2004, STT is levied on the sale and purchase of equities (ie Shares, Debentures or any other security). more
clearly, The income a individual generate through the securities market be it through reselling of shares or through debentures is
taxed by the government of India and the same tax is called as Securities Transaction Tax.

Banking Cash Transaction Tax -
A bank transaction tax is a tax levied on debit (and/or credit) entries on bank accounts. It can be automatically collected by a central counterparty in the clearing or settlement process.

Capital Gains Tax:-
Capital Gain tax as name suggests it is tax on gain in capital. If you sale property, shares, bonds & precious material etc. and earn profit on it then you are supposed to pay capital gain tax.
 PROPERTY TAX
 GIFT TAX
 HOUSE TAX
 PROFESSIONAL TAX
 DTC


INDIRECT TAXES-
You go to a super market to buy goods or to a restaurant to have a mouthful there at the time of billing you often see yourself
robbed by some more amount than what you enjoyed of, these extra amounts are indirect taxes, which are collected by the
intermediaries and when govt tax the income of the intermediaries this extra amount goes in to government’s kitty,
hence as the name suggests these are levied indirectly on common people.
Indirect Taxes:-
 SALES TAX
 VAT(VALUE ADDED TAX)
 CUSTOM DUTY
 OCTROI
 EXCISE DUTY
 ANTI DUMPING DUTY
 ENTERTAINMENT TAX
 TOLL TAX
 SERVICE TAX

 GST-GOODS & SERVICE TAX
Value Added Tax-
When we pay an extra amount of price for the goods and services we consume or buy, that extra amount of money is called as VAT.
This taxes is about to be replaced by Goods and Services Tax.

Customs Duty –
Customs Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India. In India, the
basic law for levy and collection of customs duty is Customs Act, 1962. It provides for levy and collection of duty on imports and
exports.

Service Tax-
Service Tax is a tax imposed by Government of India on services
provided in India. The service provider collects the tax and pays the same to the government. It is charged on all services except the services in the negative list of services.

Sales Tax :-
Sales tax charged on the sales of movable goods.

Custom duty & Octroi (On Goods):-
Custom Duty is a type of indirect tax charged on goods imported into India. One has to pay this duty, on goods that are imported from a foreign country into India
Octroi is tax applicable on goods entering from one state to another for consumption or sale. In simple terms one can call it as Entry Tax.

Excise Duty:-
An excise duty is a type of tax charged on goods produced within the country. Another name of this tax is CENVAT (Central Value Added Tax).