Importance of Taxation in India
Importance of Taxation
in India
How many of you actually love to pay taxes and how many of
you know why government ask us to pay taxes? In this article I will give you
short information about taxation and role and importance of taxation in an
economy
Tax is a compulsory financial charging on individual and
company by state government or central government. That collected Taxes amount
is used for nation's development like to increase arms and ammunition for
defense of country, infrastructure and other development and for other welfare
related work
Essentials of Taxation
·
A
tax is a mandatory contribution of a citizen or entity to the state as per the
rules
·
The
I T payer like us does not receive any direct and or special benefit in return
·
It
is spent by the Nation for the benefit of the people.
There are two types of
taxes
1 Direct Taxes
2 Indirect Taxes
Direct Taxes
This type of taxes are paid directly by you such as the
wealth tax, corporate tax, dreaded tax etc. or we can define it as "Direct
tax is a type of tax where the incidence and impact of taxation fall on the
same entity"
Different types of
direct taxes
1. Income
This one is the most, well-known and common tax. There are so
many facets to income tax, such as the taxable income, tax slabs, reduction of
taxable income, taxes deducted at source (TDS) etc
2. Capital Gains
This is a tax that is payable whenever you receive a sizable
amount of money. It could be from a sale of a property or from an investment.
It is usually of two types, long term capital gains from investments held for
longer than 36 months and short term capital gains from investments held for
less than 36 months
Indirect Taxes
The definition of Indirect Tax Is "Indirect taxes are
those taxes that are levied on goods or services. They differ from direct taxes
because they are not levied on a person who pays them directly to the government,
they are instead levied on products and are collected by an intermediary, the
person selling the product"
Different types of
indirect taxes
1 Sales
2 Services
3 Value added (VAT)
4 Custom duty
Income Tax Return
Filing
The months of July, August and September in India are the
busiest months for financial accountant, with the filing of Income Tax Returns.
An income tax return (ITR) is the tax form used to file income tax with the
Income Tax Department. Income. Now I T Return can file online from anywhere in
just few steps..
Benefits of filling
ITR?
Filing Income TR is a legal responsibility of a Indian
citizen and filing tax return is always helpful in the following
·
For
Immigration and visa processing
·
You
can use it as a Net worth certificate / income proof. Applying for a higher
insurance cover
·
Availing
loan facility like, personal or home
·
Most
important is your peace of mind!
If you are looking to pay Online GST
Return then I will suggest to you that Advise24 will the best
option for you. Because Advise24
is providing the best GST Return services in India.
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