tax

Taxes in India are levied by the Central Government and State Governments, with specific roles for each tier of government. Here are the key points:

Income Tax

Income Tax: A tax imposed on individuals or entities based on their income or profits.

Tax Rates: Income tax rates vary with income, and individuals have the option to choose between the old and new tax regimes.

Exemptions: Farmers, who constitute 70% of the Indian workforce, are generally exempt from income tax.

Goods and Services Tax (GST)

GST: An indirect tax on the supply of goods and services.

Types of GST: Central GST (CGST), State GST (SGST), and Integrated GST (IGST) for intrastate, interstate, and international sales, respectively.

Tax Slabs: GST is levied at rates of 0%, 5%, 12%, 18%, and 28%.

Other Taxes

Customs Duty: Levied on imported goods.

Excise Duty: Levied on domestically produced goods.

Service Tax: Levied on services provided domestically.

Value Added Tax (VAT): Levied by state governments on goods sold within the state.

Octroi: Levied by state governments on goods moving from one state to another.

Property Tax: Paid by property owners to municipal corporations.

Tax Authorities

Central Board of Direct Taxes (CBDT): Responsible for direct taxes.

Central Board of Excise and Customs (CBEC): Responsible for indirect taxes.

Local Authorities: Municipal corporations and local governments collect minor taxes.

Classification of Taxes

Direct Taxes: Paid directly by individuals or organizations, such as income tax and corporate tax.

Indirect Taxes: Paid indirectly by consumers through goods and services, such as GST and customs duty.

Key Points

Tax Structure: India has a three-tier federal structure with the Central Government, State Governments, and local authorities.

Tax Laws: Taxes are determined by the Central and State Governments, and laws are passed to govern their collection.