explain about various taxes in india?

Question

also about tax refunds.it will be useful 4 me if anyone explain the very basics about it

Answer 1

1) Income tax (Govt's share of your income)

Basically you earn entire year, and at the end of financial year, file tax returns.
Once your tax returns are approved, based on whether you have paid excess tax amount
or have paid short amount, you would get refund or payment notice resp.

If you are salaried, this normally would get deducted by your employer & If you are self-employed (professional),
you would get tax deducted on payments to you, done by your hirers, if it exceeds some limit.

2) Service Tax (Govt's share of your spendings)

If you pay money to specified professionals (list of professions as per Income tax dept),
then specific percentage of payment is to be paid by concerned professional to Govt, as service tax.
Professionals are being treated as manufacturers of services, especially after Information Tech. boom.

Rate & professions valid for service tax are subject to change, in every annual budget.

3) Excise Duty ( Penalty you have to pay indirectly to consume manufactured goods)

These are duties at various rates that are levied by govt, on manufacturers, for producing
goods.

This tax is borne by end user indirectly.

4) Sales Tax (Penalty you have to pay indirectly for purchasing goods)

This tax is levied by state govt, on traders of goods, for conducting business in their state.

This tax is borne by end user indirectly.

5) VAT (another form of sales tax, so that you cant purchasing anything without paying tax)


Except for item 4(state govt. tax), all the other taxes are collected by central govt's various depts.

Answer 2

Yours question requires very exhaustive answer, which can not be replied in a page or two. Our government searches for various ways,means and reasons to impose new taxes every year. So they study the tax laws of all governments available and try to give a new name for that tax and introduce through the Finanace Minister in the yearly budgets. Enactment will follow in the Parliament automatically, as the opposition members walkout every day for some silly reason or the other. To pass any bill is so easy under the circumstances, having the votes of the majority remaining members, without even any discussion about the new tax.
If you are so interested to know about various tax laws applicable in India for that year, go to 'LAW PUBLICO' book shop during May month of any year and purchase all the tax law books, which will be current upto next March. During February any how,our honourable F.M will study all new taxes imposed by various Governments and invent few more taxes for the public of India and present on the Budget Day. History repeats every year. There will be no single individual in India who can summarise various current taxes in the country. If you receive any notice from any tax authorities for not paying any tax, then go and study that tax law or consult a auditor who will tell what to do if you want to pay that tax, or what to do if you want to avoid that tax. So simple, you see. For refunds also the same applies. If you want a refund of what you paid earlier, consult an experienced auditor.

Answer 3

in India there various type of taxes out of which some highlights are as under



taxes on manufacturing or providing services etc

on manufacturing ie physical ex ice customs


on providing services ie cannot be physical service tax


on income there is
income tax


on selling any goods there is sales tax
that can be vat or CST
if sale is with in any state then vat is applicable
but if sale is within states then CST is attracted

these are the basics for in Indian taxes for further information and exemptions go to related books an barred acts issued by Indian government because no one can give accurate details rather than experts

Answer 4

Tax Slab for the year 2013-14

Answer 5

get a book or a tax consultant (that would be easire than explaining)

Answer 6

Refer to www.allindiantaxes.com

Answer 7

INCOME TAX and vat

Answer 8

www.incometaxindia.gov.in