TAX SYSTEM IN INDIA
Taxes are the greatest source of income for the Government of India and the Government utilized this money for the development of the nation. Taxes is a compulsory payment by a citizen of India to the government. No taxpayer can deny paying taxes to the government. Taxes are determined by the central government and state governments of the respective states.
TYPE OF TAXES
Table of Contents
Taxes are basically divided into 2 type-
1.Direct Tax
2.Indirect Tax
Direct Tax
A direct tax is that tax, which is born by the person on whom it is charge. A direct tax can not be shift to other person and Include-
Personal income Tax
Gift Tax
Wealth Tax
Corporation Tax
Profession Tax
Cash Transaction Tax
Registration Tax
According to proposal of 2019 budget , you are not liable to tax if your income is less than 5 lakh .
CBDT ( Central board of direct tax) is a part of revenue department under ministry of finance which provide the inputs of planning & policy of direct Tax.
Indirect Tax
Indirect tax are those tax which have their primary impact on one person . But that person can shift his burden to others .Indirect tax include sales tax, passenger tax , service tax, excise duty , vehicle tax ,custom duty and entertainment tax etc.
CBEC( central board of excise & custom ) is also a part of revenue department and controls the indirect tax.
The central government introduce a new form of tax called Goods Service Tax (GST) which is the reformation of indirect Tax. CBEC are rename as CBIC(central board of indirect tax and Custom) to control GST.Tax System in India
2-Science Instrument List & Uses