Worrying what are the types of income tax? There are primarily two types of income tax:
Direct Taxes:
These are taxes directly levied on individuals or entities by the government. Income tax is the most common form of direct tax in India. Direct taxes are paid directly by the taxpayer to the government.
Income Tax:
Income tax is levied on the income earned by individuals, Hindu Undivided Families (HUFs), companies, firms, and other entities. It is governed by the Income Tax Act, 1961, and individuals are required to file Income Tax Returns (ITRs) annually to declare their income and pay taxes accordingly.
Indirect Taxes:
These are taxes imposed on goods and services, and the burden of these taxes can be shifted from one taxpayer to another. Indirect taxes are not directly paid by the taxpayer to the government but are collected by intermediaries who then remit them to the government.
Goods and Services Tax (GST):
GST is a comprehensive indirect tax levied on the supply of goods and services at each stage of the supply chain. It has replaced multiple indirect taxes such as VAT, excise duty, service tax, etc., and is governed by the Goods and Services Tax Act, 2017.GST is administered by the Goods and Services Tax Network (GSTN) and is collected by registered businesses on behalf of the government.These are the main types of taxes levied in India, with income tax being the primary form of direct tax and GST being the principal form of indirect tax. Your query about what type of tax is income tax must be solved.Get Assistance on Tax Payment at Low Cost with NoBroker Legal ServicesRead moreWhere to show gift received from relatives in ITR?
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What are the Types of Income Tax?
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March 29, 2024
2024-03-29T17:23:13+00:00 2024-03-29T18:29:58+00:00Comment
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Taxes
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