Direct and Indirect Tax in India – Quick Introduction to Income, Wealth and Service Tax

If you pay the tax directly to the government, it’s Direct-Tax. gst full form
Case in point:
Income, and
Wealth Duty

It’s not mandatory or common for all the citizens to pay Direct-Tax in India.

Rates are based on Payer’s Sexuality, Age, his normal Place of Residence & Salary level.
If you pay tax indirectly while purchasing goods or paying for services, it’s Roundabout Tax.
Entertainment Tax, etc.

Prices are based on Product/Service type. Not based on Payer.
Income Tax

American indian Income Tax statute, mainly answers the following questions,

Who is liable to pay?
Precisely what is the period for which the tax is to be paid?
What is the interest rate or amount payable?
On what amount, the tax is payable?
The four questions discussed above are answered, under the Income Tax Act, as under: –

Who will be responsible to Pay? – Person whose total taxable income exceeds the basic permission limit is liable to Pay. The latest exemption limit is Rs. 2, 00, 000. Person includes:
an Individual
a Hindu Undivided Family
a Company
a good
an Association of People or Body of Persons, whether incorporated or not,
a Local Authority, and
every Artificial Juridical Person, not falling within any of the above classes.

Precisely what is the period of payment? – Previous Year, subject to certain exceptions. The past year for the Examination Year 2012-13, will be from 01 April, 2011 to 31 March, 2012.

What is the pace? By the rate or rates enacted by Central Take action for each and every Assessment Year. Is actually varies between 10% – 30% of taxable income excluding the basic permission limit applicable to the tax payer.

On what amount, the Income-tax is payable in India? – Tax has to be payed on Total taxable Income earned by Paying customer through the Previous Year. Total Income as per American indian Income Tax Act, includes five heads of income as given below:
Earnings Income
Income from Home Property
Capital Gains
Profits from Business or Job, and
Income from Different sources.
Wealth Tax in India

Who is accountable to pay? – Person whose net wealth is greater than basic exemption limit on the valuation date (31 st March). The present permission limit is Rs. 31 Lakhs. Person includes,
an Individual
a Hindu Undivided Family
a Company, both public use or private.
What is the period of payment? Valuation time., the last day of the previous year for the Assessment Year. Past year for Assessment 12 months 2012-13 will be from 01 April, 2011 to 31 March, 2012. Worth date for the AY 2012-13, is 31. goal. 2012.

What is the pace or tax amount payable? Rate for the AY 2012-13, is 1% of Net Wealth (in more than the exemption limit, viz., Rs. 30, 00, 000) of the tax paying customer.