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    Asynchronous DTX

    Uploaded by

    Saurabh Attal
    Activities on Direct Taxes

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    © All Rights Reserved
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    Asynchronous DTX

    Uploaded by

    Saurabh Attal
    14 views3 pages
    Activities on Direct Taxes

    Original Title

    1923573%20asynchronous%20%20DTX

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    Activities on Direct Taxes

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views3 pages

    Asynchronous DTX

    Uploaded by

    Saurabh Attal
    Activities on Direct Taxes

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Asynchronous 1923540

    Different types of taxes in my family –

    Direct Tax

    Direct Taxes comprise taxes that you pay directly to the government. These taxes are levied directly on
    an individual and therefore can’t be transferred to another entity or person. The Central Board of Direct
    Taxes (CBDT) under the Department of Revenue is responsible for the governance of this tax.

    There are various types of Direct Taxes, which include:

    Income Tax

    Income Tax came into force with the Income Tax Act of 1961. All the rules of income tax are set by this
    act. This tax will apply to any income you generate for profits, owning a property, salary, investments or
    business.

    Besides stipulating from where income tax is to be collected, this act has provisions that allow tax
    benefits for taxpayers through fixed deposits and life insurance premiums. This act also determines your
    position on the income tax slab.

    Gift Tax

    In 1958, the Gift Tax Act was originally introduced. According to the act, if you receive presents of any
    kind, then you will have to pay a tax of 30%. This was later tweaked to exclude gifts from family such as
    spouse, parents and blood relatives. If anyone else gives a gift whose value exceeds Rs. 50000, then you
    will have to pay tax.

    Wealth Tax

    Amongst the various types of taxes, Wealth Tax is applicable not only on an individual but also on a
    Hindu Unified Family (HUF) and businesses.

    For example: If your net wealth is more than Rs. 1 crore, then you have a surcharge of 12%. Companies
    whose turnover exceeds 10 crores will also have to pay wealth tax.
    Capital Gains Tax

    This is a type of Income Tax levied on the gains you make after the sale of an investment or property.
    There are two types of Gains Tax – Long Term Capital Gains Tax and Short Term Capital Gains Tax. The
    former is applied when the holding period of the investment exceeds 36 months. The latter is applicable
    if the duration of the investment is less than 36 months.

    Securities Transaction Tax

    Share trading on the stock market is subject to this tax. For every share purchase or sale, you pay the
    Securities Transaction Tax.

    Corporate Tax

    Another type of Income Tax, the Corporate Tax is levied on the earning of businesses. An Indian firm
    whose turnover is less than Rs. 1 crore is not subject to this tax. There is a corporate tax slab according
    to which companies pay tax. Moreover, the tax structure for international firms is different from
    domestic firms.

    Indirect Taxes

    Unlike Direct Taxes, these taxes are not levied on individuals but on goods and services. This tax is not
    levied on profit, income or the revenue of an individual or an entity. Also, this tax can be transferred
    from one person to another.

    Here’s a list of various types of Indirect Taxes:

    Sales Tax

    Any product being sold is subject to Sales Tax. The product can be either produced domestically or be
    imported. The government subjects the seller of the product to the sales tax, who can then pass it on
    the buyer.
    Sales Tax is different for different states. Also, the central government levies the sales tax. For some
    states, sales tax is one of their largest revenue sources.

    Service Tax

    Service Tax is applicable on services provided by companies. Unlike Sales Tax, it is not charged on every
    sale. This tax is charged with on a monthly or quarterly basis. Service providers pay this tax once their
    customers clear their bills.

    Goods and Service Tax

    The Goods and Services Tax was introduced in 2017. This tax is applied at the consumption stage. GST is
    applied at every stage of the supply chain wherever consumption takes place.

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