Direct Tax

Tax is the amount levied by the Government on citizens in order to generate income for the development of country, to raise the living standards and economy of the country.

All the taxes being levied in India are derived from the Constitution of India and is backed by the Law passed by the Parliament.

Types of Taxes:

Taxes are paid in two different forms: Direct Taxes and Indirect Taxes.

Direct Tax :

Direct Tax are the taxes levied by the government directly to their citizens.

Citizens are the direct tax payers and they have to pay taxes if their income exceeds the particular slab of amount decided by the government.

We are here to discuss about the taxes paid by you directly :

Direct Income Tax

• Income Tax
• Wealth Tax
• CorporateTax

Income Tax

As the name implies, this is the tax paid directly against certain amount of income. The rates are charged as per the income level.

The slab of income decided by the government for the individuals below the age of 60 is as follows:

• Taxable Income below Rs.2,50,000 is Zero.
• The income between Rs. 2,50,000 - Rs. 5,00,000 is charged with 10% tax of the total income being earned.
• The taxable income between Rs. 5,00,000 to 10,00,000 is charged with 20% of the total income plus Rs. 25,000.
• The last slab of more than Rs. 10,00,000 is charged with 30% tax of the total income plus Rs. 1,25,000.

The slab for the individuals who are in between the age of 60-80 is :

• The first slab starts from Rs. 3,00,000 and below this amount the tax applied is nil.
• Between Rs. 3,00,000 to Rs. 5,00,000 the rate of tax to be paid is 10% of the total income. And rest is same for this category.

Now come the people more than the age of 80 :

• Tax is exempted for this group id the income is upto Rs. 5,00,000.
• The income more than Rs. 5,00,000 and below Rs. 10,00,000 will be levied with the tax rate of 20%. And more than that it is 30% adding to this Rs. 1,00,000 also.

The income tax is charged to an individual, companies, Hindu Undivided Families etc. There are various different heads under which the income tax is charged such as income coming from House, property, salaries, business etc. There are few exemptions also due to which the total amount of tax to be paid may reduce.

The total taxable income could be calculated by subtracting the necessary deductions and exemptions from the total amount of income earned. And after getting the particular amount tax is applied as per the slab decided.

Wealth Tax

Wealth tax is a tax levied on the personal property of the owner. If some benefits are being derived from that property, then wealth tax is applicable and is charged every year for the same property.

But the wealth tax has been abolished by the current Finance minister Mr. Arun Jately, dated 28th of February, 2015. In place of wealth tax, Additional Surcharges were raised from 10% to 12% for those Super Rich people having their income more than One Crore per annum.

This Include Super rich individuals, Hindu Undivided Families and Companies.

Corporate Tax

Corporate tax is the tax charged by the government on the profit earned by the businessmen. The said tax is applicable on both domestic companies and foreign companies.

The tax is applied in similar way as it is applied on the individuals.

So, if you are an aspiring CA,Finance Professional or student from the related field, you ought to know each and every thing minutely. And to gain knowledge practically one must join Tally Training institute in Chandigarh .