In economics, taxes also fall on pays the tax, whether this is the entity being taxed, such as a business, or the end consumers of the business’s goods. An accounting perspective, there are various taxes to consider, including payroll taxes, state income taxes, and federal and sales taxes.
Types Of Taxes In India?
The tax structure in India is a three structure: local municipal bodies, state, and central government. Tax in India is broadly classified into two types direct and indirect tax. Let us see at these two types of taxes and catch the difference between direct and indirect taxes.
Direct Taxes
Direct tax is on people’s income or profits. For an example, including income tax, personal property tax, a taxpayer pays the government for different purposes FBT, etc. The burden has to be by the person on whom the tax is levied and cannot passed on to someone else. The Central Board of Direct Taxes (CBDT) governs and administers the Direct Tax.
Indirect Taxes
indirect tax is impose by the government on goods and services. Therefore, it can be shifted on one tax-paying individual to another. example the wholesaler can pass it on to the retailers, who then pass it on to the customers. Therefore, customers bear the impact of indirect taxes. The Central Board of Indirect Taxes and Customs (CBIC) governs and administers indirect taxes.
Types of Taxes ?
There are many types of taxes that help fund various services and programs in our communities. These are some of the most common Taxes in India:
Income Taxes:
These are taxes you pay by the money you earn from like a job, a business, or investments. The government and some state governments collect income taxes. if you earn more you more pay in taxes.
Payroll Taxes:
These taxes are taken out of your pay fund Social Security and Medicare, which provide retirement and health care benefits for older Americans. you and your employer contribute to payroll taxes. These taxes are taken out from your income Tax .
Sales Taxes:
When you buy a goods and services, you might pay a sales tax. This tax is a percentage of the purchase price and is collected by state and governments. The tax rate depending on where you live.
Property Taxes:
If you own a home or other property, you will pay property taxes. These taxes are based on the value of your property and it help fund local services like schools and public safety. Property taxes are collected by State governments.
Corporate Taxes:
Businesses pay taxes on their profits. These taxes are collected by the government and some state governments. Corporate taxes help fund various government programs and services.
Estate and Inheritance Taxes:
When someone passes away and leaves behind property or money , the government may collect estate or inheritance taxes. These taxes are based on the value of the assets and are collected by the government and some state governments.
Excise Taxes:
These are taxes on specific goods, like alcohol, gasoline, and tobacco. Excise taxes are collected by Central government, and local governments and are usually included in the price of the product.
Hotel and occupancy Taxes:
When you are stay in a hotel or other short-term rental, you pay hotel and occupancy taxes. These taxes are collected by State governments and help fund local tourism and other community services.
Toll Taxes:
When you use certain roads, bridges, or tunnels, you have to pay a toll tax. These taxes are collected by state and local governments and help pay for the maintenance and construction of transportation infrastructure like Road etc.
These are some of the many types of taxes we encounter in our daily lives. While it might seem like a lot, each tax plays a role in funding the services and programs that make our communities to better places to live.
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