Types of Tax in India

About Tax in India

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. The computation and imposition of the varied
taxes prevalent in the country are carried on by the Ministry of Finances
epartment of !evenue. uring the last financial year of "#$# % "#$$, the gross
collection of tax amounted to around I&!. '.(" trillion, )here the direct tax has
got *+ , contribution and the indirect tax has got -- , contribution.
Type of Taxes

.revalence of various /inds of taxes is found in the nation. Taxes in this nation
can be either of direct or indirect ones. 0o)ever, the types of taxes even depend
on )hether a particular tax is being levied by the central or the state government
or any other municipalities. Follo)ing are some of the ma1or Indian taxes, )hich
are categori2ed belo)3
Direct Taxes

This /ind of tax is named so as such a tax is directly paid to the 4nion
Government of India. 5s per a survey, the !epublic of India has )itnessed a
consistent rise in the collection of such taxes over a period of the past years. The
visible gro)th in these tax collections as )ell as the rate of taxes reflects a healthy
economical gro)th of India. 6esides that, it even portrays the compliance of high
tax along )ith better administration of taxation. To name a fe) of the direct taxes,
)hich are imposed by the India Government are3
6an/ing 7ash Transaction Tax
7orporate Tax
7apital Gains Tax
ouble Tax 5voidance Treaty
Fringe 6enefit Tax
8ecurities Transaction Tax
.ersonal Income Tax
Tax Incentives
Indirect Taxes

5s opposed to the direct taxes, such a tax in the nation is generally levied on some
specified services or some particular goods. 5n indirect tax is not levied on any
particular organisation or an individual. 5lmost all the activities, )hich fall )ithin
the periphery of the indirect taxation, are included in the range starting from
manufacturing goods and delivery of services to those that are meant for
consumption. 5part from these, the varied activities and services, )hich are
related to import, trading etc. are even included )ithin this range. This )ide range
results in the involvement as )ell as implementation of some or other indirect tax
in all lines of business.
4sually, the indirect taxation in the Indian !epublic is a complex procedure that
involves la)s and regulations, )hich are interconnected to each other. These
taxation regulations even include some la)s that are specific to some of the states
of the country. The regime of indirect taxation encompasses different /inds of
taxes. The organi2ations offer services in all or most of the related fields, some of
)hich are as follo)s3
5nti umping uty
7ustom uty
9xcise uty
8ales Tax
8ervice Tax
:alue 5dded Tax or :. 5. T.
Other Taxes in India

6esides the taxes, the names of )hich are mentioned earlier, the nation has got the
prevalence of many other taxes. ;isted belo) are some of those Indian taxes3
7onsumption Tax
eath Tax
ividend Tax
9ndo)ment Tax
9state Tax
Flat Tax, )hich is even /no)n as the Flat !ate Tax
Fuel Tax
Gift Tax
Inheritance Tax
8ales Tax <8olely on goods that do not include payment of sales tax on services=
8. 9. T. or 8elf 9mployment Tax
8ocial 8ecurity Tax
Transfer Tax
.ayroll Tax
.oll Tax
.roperty Tax
>ealth Tax