Direct Tax in India: Types, Benefits & Online Payment. The Government of India levies two types of taxes on the citizens of India – Direct Tax and Indirect Tax.
Which are the direct taxes in India?
1. Corporate tax
- Minimum Alternate Tax (MAT) Levied on zero tax companies whose accounts are prepared as per the guidelines of the Companies Act.
- Fringe Benefits Tax. Such direct tax is paid by companies on fringe benefits (drivers, maids, etc.) …
- Dividend Distribution Tax (DDT) …
- Securities Transaction Tax (STT)
What are types of direct tax?
Direct taxes are one type of taxes an individual pays that are paid straight or directly to the government, such as income tax. … Tax payable is not considered a long-term liability, but rather a current liability,, poll tax, land tax, and personal property tax.
How many are direct taxes?
Tax Rate for the Different Types of Direct Tax
|Tax slab||Income tax|
|Up to Rs.2.5 lakh||Nil|
|From Rs.2,50,001 to Rs.5,00,000||5% of the total income that is more than Rs.2.5 lakh + 4% cess|
|From Rs.5,00,001 to Rs.10,00,000||20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess|
What are 3 types of taxes?
Tax systems in the U.S. fall into three main categories: Regressive, proportional, and progressive. Two of these systems impact high- and low-income earners differently. Regressive taxes have a greater impact on lower-income individuals than the wealthy.
What are 5 types of taxes?
Here are five types of taxes you may be subject to at some point, along with tips on how to minimize their impact.
- Income Taxes. Most Americans who receive income in a given year must file a tax return. …
- Excise Taxes. …
- Sales Tax. …
- Property Taxes. …
- Estate Taxes.
Is GST direct tax?
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. … GST is a single domestic indirect tax law for the entire country.
How many indirect taxes are there in India?
There are 7 main types of indirect taxes in India. However, after the implementation of GST, these taxes are streamlined into one singular tax to reduce hassles of compliance.
Is VAT a direct tax?
Direct taxes are non-transferable taxes paid by the tax payer to the government and indirect taxes are transferable taxes where the liability to pay can be shifted to others. Income Tax is a direct tax while Value Added Tax (VAT) is an indirect tax.
Is TDS direct tax?
TDS is a direct tax which is collected from the people at the time of payment like salary, rent, commission, etc. The TDS collected is then transferred to Government Account. The full form of TDS is Tax Deducted at Source.
What are the 4 main taxes?
In fact, when every tax is tallied – federal, state and local income tax (corporate and individual); property tax; Social Security tax; sales tax; excise tax; and others – Americans spend 29.2 percent of our income in taxes each year.
What are the 12 types of taxes?
Learn about 12 specific taxes, four within each main category—earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes; buy: sales taxes, gross receipts taxes, value-added taxes, and excise taxes; and own: property taxes, tangible personal property taxes, estate and inheritance …
Who bears the burden of tax?
When supply is more elastic than demand, buyers bear most of the tax burden. When demand is more elastic than supply, producers bear most of the cost of the tax. Tax revenue is larger the more inelastic the demand and supply are.