Taxation System of India
The tax structure of India is well developed with clearly demarcated authority between Central and State Governments and local bodies. The taxes levied by the central government include Income Tax (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax.
The state government on the other hand can levy Value Added Tax (VAT), stamp duty, State Excise, land revenue and tax on professions. Local bodies are authorized to levy tax on properties, octroi and for utilities like water supply, drainage etc.
In the last one and a half decade, the Government of India has carried out various reforms in the taxation system. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India. Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT.
Taxes Levied by Central Government
Some of the Taxes Levied by the central government are:
The tax structure of India is well developed with clearly demarcated authority between Central and State Governments and local bodies. The taxes levied by the central government include Income Tax (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax.
The state government on the other hand can levy Value Added Tax (VAT), stamp duty, State Excise, land revenue and tax on professions. Local bodies are authorized to levy tax on properties, octroi and for utilities like water supply, drainage etc.
In the last one and a half decade, the Government of India has carried out various reforms in the taxation system. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India. Since April 01, 2005, most of the State Governments in India have replaced sales tax with VAT.
Taxes Levied by Central Government
Some of the Taxes Levied by the central government are:
Direct Taxes
- Tax on Corporate Income
- Capital Gains Tax
- Personal Income Tax
- Tax Incentives
- Double Taxation Avoidance Treaty
Indirect Taxes
- Excise Duty
- Customs Duty
- Service Tax
- Securities Transaction Tax
Taxes Levied by State Government
- Sales Tax/VAT
- Stamp duty
- Property/building tax levied by local bodies
- Taxes on Agriculture income (on income from plantations)
- Luxury tax levied by certain State Government on specified goods
Municipal/Local Taxes
Octori/entry tax
Extra Resources
finmin.nic.in/topics/taxation/index.html - 37k
0 comments
Post a Comment