which tax is paid to a third party? direct flat income indirect

Considered as equitable for all classes of people.

* Please note that Estate and Wealth taxes have now been abolished. Securities Transaction Tax (STT): If one is involved in security trading, then they are required to pay securities transactions tax, irrespective of any gains made out of it or not. Based on the duration for which one held the investments, the capital gains tax is charged as long-term capital gains (LTCG) or short-term capital gains (STCG). Capital gains may arise out of land or from investments such as equities. Read our article on the latest Income Tax Slab to know more details.Ĭapital Gains Tax: If any one is making capital gains they are required to pay tax on those gains to the government. The tax is paid on the basis of income tax slabs of the IT department. Income tax is imposed on the income that is being earned in a financial year. Income Tax: The most common example of direct tax is income tax, which one pays directly to the government.

CBDT is governed by the Department of Revenue which provides inputs to the government related to the implementation of direct taxes.

In India, the Central Board of Direct Taxes (CBDT), is responsible for the collection and administration of direct taxes. Here, the taxpayer has to bear the tax and will not be able to transfer this liability to another entity. What is Direct Tax?ĭirect Tax is a tax where the taxpayer pays directly to the authority imposing the tax. It is also regarded as the main source of revenue for the government which helps them to build the economy of a country.Īt a broad level, taxes in India are categorized into: Direct and Indirect taxes. Tax is a kind of mandatory recurring fee which is paid to the central and state government. In India, whether you are earning or making a purchase of any goods or services, you as an individual or any corporate entity are obliged to pay taxes.

Which tax is paid to a third party? direct flat income indirect