subject: Tax System And Its Structure In India [print this page] We always wonder how india has such a strong economy even after so many recessions. Because Tax Structure present in India is very strong and it follows the financial year. The taxation is applicable for any kind of income pertaining to any person working as an employee any where in India at any level.
Different types of taxes levied under tax structure in India:
Direct Taxes
Personal Income Tax
Tax on Corporate Income
Tax Incentives
Securities Transaction Tax
Service Tax
Excise Duty
Customs Duty
Capital Gains Tax
Indirect Taxes
Sales Tax or Value Added Tax
Different heads of income under tax structure in India:
Salary
House property
Profit in business or profession
Capital gains by sale of immovable assets etc
Other sources
The different types of exemption schemes under tax structure in India:
Exemption on income spent for higher educational purpose
Exemption on income spent on the treatment of a diseased person if he/she is dependent
Exemption on income that is spent as contribution towards provident fund, insurance policies, etc
Exemption on the income that is spent on buying national savings certificates as well as investments in other government based savings schemes
Exemption on income of a disabled person
Exemption on income spent for payment of interest on loan
There are many Taxation Jobs that any person with accounts background can go for. Normally Taxation Jobs In India are for people who specialise in TAX.
Taxes Levied by the Central Government of India
The Central Indian Government that is officially named as the "Union Government" is responsible for the imposition of both direct taxes as well indirect taxes. Listed below are some of the taxes that are levied by the India Government:
Direct Taxes
Banking Cash Transaction Tax
Capital Gains Tax
Corporate Income Tax
Fringe Benefit Tax
Personal Income Tax
Securities Transaction Tax
Indirect Taxes
Customs Duty
Excise Duty
Service Tax
Recent Changes in the Indian Taxation System
Over a period of 10 years to 15 years, the tax system in the nation has undergone some significant changes. The entire system has been tremendously reformed. The slabs for the imposition of taxes have been modified. Besides that, the rates at which any particular tax is being levied have been restructured as well as the various laws that govern the levying of taxes were being simplified. All of these reformations have resulted in the following:
Better compliance
Better enforcement
Easy payment of the levied taxes.
The different types of exemption schemes under tax structure in India:
Exemption on income spent for higher educational purpose
Exemption on income spent on the treatment of a diseased person if he/she is dependent
Exemption on income that is spent as contribution towards provident fund, insurance policies, etc
Exemption on the income that is spent on buying national savings certificates as well as investments in other government based savings schemes
Exemption on income of a disabled person
Exemption on income spent for payment of interest on loan
There are many Taxation Jobs that any person with accounts background can go for. Normally Taxation Jobs In India are for people who specialise in TAX.
Taxes Levied by the Central Government of India
The Central Indian Government that is officially named as the "Union Government" is responsible for the imposition of both direct taxes as well indirect taxes. Listed below are some of the taxes that are levied by the India Government:
