A citizen who is above 18 years of age and is earning, or a business or corporate entity legitimately has to pay tax to the government. Taxes vary based on the types of services if it is for a business, or if it for individuals it depends on the age, gender and earnings. Planning your taxation effectively helps in better financial planning too.
Taxation in India is system in which taxes are levied on the citizens and corporate entities by the government. This is majorly done to improve the economy and to raise the standard of living. Tax structures have differed extensively across jurisdictions and time. In the recent times, taxation occurs on both physical assets, such as property, and specific events, like sales transaction. The management of tax policies is very crucial and arguable issues today. The Central and State Government have the authority to levy taxes in India which is given by the Constitution of India. Read less
IMPORTANCE OF TAXATION IN INDIA
- Generating revenue to the Government to meet the public expenditure
- Taxation increases the disposable income creating demand for goods and services which lead to more investment and this will finally increase the employment
- Taxation ensures price stability by controlling the inflation of the economy
- Controls the economy fluctuations like depression and boom by reducing and increasing taxes respectively
- Taxation like custom duty imposed will curb the incoming of goods and give a boost to the domestic production of import substitutes
- Reduction in the inequality of income and wealth by imposing higher tax rates to rich.
KINDS OF TAXES
There are two types of taxes levied called the Direct and Indirect taxes. Direct taxes are ones which are directly paid and cannot be transferred to anyone else. Some of the Direct Taxes are:
- Income Tax is a tax levied on the total income of a person and business entities.
- Capital Gains Tax paid when you receive a good chunk of money either from investments or sale of property
- Corporate Tax is paid by the company on the revenue earned by them.
- Indirect Tax is the taxes levied on goods and services and it is a tax that is collected from the person selling the product or services. This includes:
- Sales Tax is the tax paid on the sale of a product or service which can be either manufactured in India or imported.
- Goods and Service Tax or GST is a destination based tax which is paid by the end consumers and the seller has to deposit the GST with their respective State Government.
- Value Added Tax or VAT is levied at every stage right from manufacturing, to distribution and finally end users.
- Custom Duty is paid on the goods imported via land, sea or air.
- Excise duty is paid only on goods manufactured exclusively in India. Apart from these taxes we also have other taxes like the Professional Tax, Education Cess, Gift Tax, Entertainment Tax and more. Aavana Corporate Solutions offers professionally curated tax services which includes consultation and tax preparation services. Our proficient team of professionals has comprehensive knowledge in tax preparation and reporting, handling tax compliance workload and meeting taxation return filing deadlines.
OUR SERVICES INCLUDE:
- Filing of Income Tax Return
- Tax Preparation Services
- Corporate IT Return Filing
- Individual IT Return Filing
- TDS Return Filing