Definition: Tax, in general, is the imposition of financial charges upon an individual or a company by the Government of India or their respective state or similar other functional equivalents in a state.
Type of Taxes:
1. Direct Taxes
2. Indirect Taxes
3. Other Taxes in India
4. Municipal or Local Taxes in India
1. Direct Taxes: This kind of tax is named so as such a tax is directly paid to the Union Government of India.To name a few of the direct taxes, which are imposed by the India Government are:
• Banking Cash Transaction Tax
• Corporate Tax
• Capital Gains Tax
• Double Tax Avoidance Treaty
• Fringe Benefit Tax
• Securities Transaction Tax
• Personal Income Tax
• Tax Incentives
2. Indirect Taxes: As opposed to the direct taxes, such a tax in the nation is generally levied on some specified services or some particular goods. An indirect tax is not levied on any particular organisation or an individual. The organizations offer services in all or most of the related fields, some of which are as follows:
• Anti Dumping Duty
• Custom Duty
• Excise Duty
• Sales Tax
• Service Tax
• Value Added Tax or V. A. T.
3. Other Taxes in India: Besides the taxes, the names of which are mentioned earlier, the nation has got the prevalence of many other taxes. Listed below are some of those Indian taxes:
• Consumption Tax
• Death Tax
• Dividend Tax
• Endowment Tax
• Estate Tax
• Flat Tax, which is even known as the Flat Rate Tax
• Fuel Tax
• Gift Tax
• Inheritance Tax
• Sales Tax (Solely on goods that do not include payment of sales tax on services)
• S. E. T. or Self Employment Tax
• Social Security Tax
• Transfer Tax
• Payroll Tax
• Poll Tax
• Property Tax
• Wealth Tax
4.Municipal or Local Taxes in India: The most known tax, which is levied by the local municipal jurisdictions on the entry of goods, is known as the Entry Tax or the Octori Tax.
