List of Taxes which Common Man pay in India, Tax is a major source of revenue for a government. India has one of the largest tax bases in the world. Much of it is lost and evaded. Although there are several ways through which our government imposes a tax on us. Before understanding what kind of taxes we pay in our everyday life. It is very important to understand how many types of taxes exist. There are two major categories. Direct Tax and Indirect Tax. Now check complete List of Taxes which Common Man pay in India
List of Taxes which Common Man pay in India
Direct tax is paid by the taxpayer directly to the government, like income tax. Indirect Tax is the tax imposed by the government on producers or intermediaries. However, the burden often falls on the consumer.
India has a federal structure, the central government is the middle of all tax structure. Usually taxes in India fall under three main categories.
Central Govt.: Income Tax, Excise Duty (On Petrol/Diesel), Central GST, Customs, fall under Central Govt.
State Govt.: State GST, Entertainment Tax, Professional Tax, Capital Gain Tax fall under State Govt.
Local Govt.: Property Tax fall under local Govt.
Categories of Taxes Paid
Income Tax: The tax levied on the income of any individual or business in a year. The Indian tax system follow progressive taxation rules.
GST is a destination based tax and levied at a single point at the time of con sumption of goods or services by the ultimate consumer. GST is based on the principle of value added tax. Goods and Services Tax (GST) is a comprehensive tax levy on manufacture, traders, sale and consumption of Goods and Services at national level and is expected to remove the cascading effect of tax-on-tax which is prevalent presently.
Excise Duty: Excise duty is levied by the government on the manufacturers. This is indirectly passed on to the consumer.
Customs Duty: These are taxes paid by consumer when shopping internationally i.e. tax on imported products.
Professional Tax: This tax is levied on professionals like CA, lawyers etc. It is imposed by the State Government. Here the tax slab differs according to states.
Capital Gains tax: Gains arising from the sale of fixed assets like shares, property, land, machinery are taxed under the capital gains tax. Capital gains are not levied each year but only on the sale of the asset.
Entertainment Tax: This tax is basically imposed on entertainment shows, amusement parks or stage shows. Most commonly tax on movie tickets.
Stamp Duty: This tax is imposed when a legal work is undertaken. Usually levied during buying and selling of property.
Property Tax: Tax paid by property owner each year. This tax is decided by the municipality. The tax charged depend on the size of the property as well as the usage of the property.
In the end it would be better to understand that India is a growing economy. The government of India requires more taxes in order to lead development. Though as tax payers we pay a lot of taxes, it can be direct as well as indirect tax. Though many taxpayers would want that taxed should go down since they do see much impact of taxes in their daily lives. However, it is very important to understand that for an economy to grow and boom, taxpayers need to pay taxes properly. This will lead to ultimate growth and betterment for the future generations.