Taxation in India
Taxes are one of the main source of income for government. The earning from tax is being used for various public welfare and other projects by government. Tax plays very crucial role in the growth of country’s economy.
Introduction to Indian Tax System
The Union Government is responsible for tax imposition in India. Tax System is mainly classified into Direct and Indirect tax laws. It is further bifurcated into many heads of income.
Multi-tax rate system is followed in India. The Union Budget provides the tax brackets for each year. Tax rates are divided into different categories and slabs are prepared accordingly.
Goods and Service Tax
Goods and Service Tax (GST) is a transformative step towards the indirect tax structure of India. It will replace the existing central and state taxes levied by the government.
Other Taxes include some very important taxes levied in India such as Advance tax, Property Tax, Capital Gain, Customs Duty, Excise Tax, Sales Tax, Corporation Tax and Expat tax.
Income Tax Return
Every person needs to file income tax return. The income tax return is a statement of income of a person declaring all the sources of revenue and the taxes paid on the income.