Overview of Tax Structure in India

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Overview of Tax Structure in India
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Introduction

• India has a well-structured tax system catering
  to its large population.
• Taxes are a necessary evil because it is the
  largest source of income for the government.
• This money is then utilized for different
  purposes and projects which then can lead to the
  development of the nation.
• Central and State Governments along with local
  authorities such as municipal corporations call
  the shots on taxes.
• The government is unable to levy any tax unless
  it is passed as a law.

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• Here are some of the important features of the
  taxation system in India
• 1. The Important Role of the Central and State
  Government
• There are specific roles for both of the central
  and state government.
• The Central Government of India imposes taxes
  like customs duty, service tax, income tax, and
  central excise duty.
• The state governments, on the other hand, imposes
  taxes such as professional tax, income tax on
  agricultural income, value-added tax (VAT), land
  revenue, state excise duty and stamp duty.
• The local bodies are also allowed to collect some
  taxes such as property tax, octroi and some other
  taxes on different services such as drainage and
  water supply.

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Different Types of taxes

• Taxes can be categorized under two headings
  namely direct and indirect taxes.
• The difference between the two lies in their
  implementation. Direct taxes are paid by the
  assessee while indirect taxes are levied on goods
  and services. A) Direct taxes
•  Direct taxes are administered to individuals and
  corporate entities and simply cannot be
  transferred to others. The plethora of taxes
  include income tax, gift tax, and wealth
  tax.Income tax
• According to the Income Tax (IT) Act, 1961 every
  assessee with total income more than the maximum
  exempt limit has to pay this tax. Both the tax
  structure and rates are annually prescribed by
  the Union Budget. This tax is imposed at the time
  of each assessment year, starts on 1st April and
  ends on 31st March.

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Different Types of taxes

• B) Indirect taxes
• Indirect taxes are, as the term denotes, not
  directly paid by the assessee to the government
  authorities.
• These indirect taxes are levied on goods and
  services and collected by those who sell goods or
  offer services.
• Here are the most common indirect taxes in India.
  Some of the important indirect taxes are
  value-added tax (VAT), customs duty, octroi,
  excise duty, service tax and goods and services
  tax.

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Revenue Authorities

• CBDT or The Central Board of Direct Taxes is an
  integral part of the Department of Revenue under
  the Ministry of Finance.
• This body not only provides inputs for policy but
  also plans direct taxes in India besides being
  responsible for the administration of direct tax
  laws via the Income Tax Department.CBEC
• The CBEC or The Central Board of Excise and
  Customs is like the CBDT is also an integral part
  of the Department of Revenue under the Ministry
  of Finance.
• It is a nodal national agency whose services
  include administering central excise duty,
  customs and service tax in India. 

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Revenue Authorities

• CBIC
• Under the GST regime, the CBIC or the Central
  Board of Indirect Taxes Customs provide
  post-legislative approval.
• The CBIC would look after all the directorates,
  field formations and provide assistance to the
  government in policy making in lieu of GST,
  continuing with central excise duty levying
  customs functions.
• The Indian taxation system has undergone several
  modifications over the years.
• The income tax rates have been standardized
  providing income tax rates with simpler governing
  laws helping common people understand the same. 

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Revenue Authorities
Chennai Main Office 10/27, 45th Street 9th
Avenue, Ashok Nagar Chennai - 600083. Phone 91
98402 77503, 91 98403 56270 E-Mail info_at_vrama
ratnam.com Chennai Branch Office 26, Ground
Floor, 4th Street, Abhiramapuram, Chennai - 600
018. Website http//www.vramaratnam.com
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Revenue Authorities
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