Types of Taxes
- It is directly levied on a taxpayer who pays it to the government and cannot be passed on to another person/institution.
- The main types of direct taxes in India are :
* Income Tax: This is directly charged according to the income of an individual.
* Corporate Tax: It is levied on the income of companies.
- In India, the Central Board of Direct Taxes (CBDT) looks after the direct taxes.
- They are levied on the goods and services bought and sold, and the burden of these taxes can be shifted to another person/institution. It is generally included in the price of a product.
- Earlier, India had a host of indirect taxes in the form of Value Added Tax, Sales Tax, Excise Duty, which have now been subsumed by a single indirect tax, the Goods and Services Tax (GST).
- With the implementation of GST, the principal of “One Nation, One Tax” has been implemented. However, goods such as petroleum, alcohol, electricity, etc. are not taxed under GST.