What are the main taxes in India?

Types of Taxes

• Different types of taxes. India has two types of taxes, namely Direct Tax and Indirect Tax.
• Direct Tax. Direct Taxes comprise taxes that you pay directly to the government.
• Income Tax.
• Gift Tax.
• Wealth Tax.
• Capital Gains Tax.
• Securities Transaction Tax.
• Corporate Tax.

What are the most important things to know about taxes?

2021 Taxes: 8 Things to Know Now

• Income tax brackets shifted a bit.
• The standard deduction increased slightly.
• Itemized deductions remain the same.
• IRA contribution limits remain the same, but 401(k) limits increased a bit.
• You can save a bit more in your health savings account (HSA)
• You may qualify for the child tax credit.

Why should I learn about taxes?

Understanding taxes greatly reduces the likelihood of making mistakes of ignorance. Plus, having a good basic knowledge helps you not only avoid difficulties, but also avoid missing deductions. For example, did you know that taxpayers can deduct up to $2,500 in student loan interest?

What things do you pay taxes for?

10 Things You Won’t Believe Are Taxed

• Introduction. If you’ve ever filed a tax return, you know that the Internal Revenue Service uses your job and investment-related income to determine your tax assessment.
• Social Security.
• Alimony payments.
• Major gifts.
• Scholarships.
• Gambling winnings.
• Fantasy football.
• Found property.

What are the 4 characteristics of a good tax?

A good tax system should meet five basic conditions: fairness, adequacy, simplicity, transparency, and administrative ease.

What are the basic concepts of income tax?

One of the important aspects of income tax filing is that you need to pay the tax for your income during the previous year, known as the Financial Year (FY). The year after FY is known as the Assessment Year (AY). The government assesses and taxes your income during the AY.

What is the chargeability of income tax in India?

1. Chargeability of income tax Article 265 of the Constitution of India provides that “no tax shall be levied or collected except by the authority of law”. Therefore, no tax can be levied or collected in India, unless it is explicitly and clearly authorised by way of legislation.

What is the Income Tax Act of India?

Income Tax Act of India, passed in 1961, governs the provisions for income tax as well as the various deductions that are applicable to it. However, since 1961, the law has been amended several times to take care of inflation and other socio-economic situations. Why Life Insurance?

Who are the tax payers in India?

Who Are The Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax if their income exceeds 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs.3 lakhs, he/she will have to pay taxes to the government of India. Additionally, the following entities that generate income are liable to pay direct taxes:

Can any tax be levied or collected in India?

Therefore, no tax can be levied or collected in India, unless it is explicitly and clearly authorised by way of legislation. The Income-tax Act, 1961 (ITA) was enacted to provide for levy and collection of tax on income earned by a person.