Saturday 24 December 2016

Taxes in India. Types of Taxes Paid by People of India


Taxes in India. Types of Taxes Paid by People of India


Taxes as Part of Life sphere from Living, Eating, Travelling, Earning and Entertainment. Different Types of Direct and Indirect Taxes Payable as Citizen of India

Taxes in India

"The Hardest thing to Understand in the World is Taxes" - Albert Einstein
Taxation is a thing which dates back to its roots for a charge created on income and wealth from residents so as to create a pool of revenue to improve the infrastructure, manage law and order and helping the poor.
While at time of Dynasty of Kings
1. Chandragupta Maurya - taxes were almost to 50% Value of Crop or
2. Samrat Ashoka - 20% to 33% of Production of Agriculture Items
3. Shivaji - 40% of Agriculatural Produce
However -  now in 21st Century - taxes has turned to be almost present in every sphere of life, so much as to even live in our own houses, we have to pay Annual Property Taxes
Know Different Types of Taxes Payable
Tax Paid for Tax Component Tax Amount Payable
Petrol Purchased Excise + VAT Rs 35/Litre on Petrol, Rs 25/Litre on Diesel
Goods Purchased, Shopping VAT 12.5% to 20%
All Services or Bill Payments Service Tax 14% (In restaurant its 7%) 
Crossing National Highway Toll Tax As High as Rs 500 on Cars in some cities
Watching Movies, Shows Entertainment Tax 20% to 30% of Movie / Show cost
For Goods Entering in State Entry Charges, Octroi Duty Rs 2000 to 5.5% - Varies
Buying New Car Road Tax, Excise, Infra Cess 20% to 45% pf Car Price
Buying House Stamp Duty, Registration 8% to 10% of Property
Annual Property Tax Property Tax Rs 3000 to Rs 10000
Income Tax Net Salary or Profits As per Income Tax Slab from 10% to 30%
Additional Cess/Surcharge: Swachh Bharat Cess and Education Cess of combined 1% applicable on all Service
Leave Aside - Taxes on Import of Goods - which is very high Custom Duty as Payable if Goods are Imported from Other countries.

How Taxes are Impacting Us

Direct Tax
1. From Income: Whatever Income you are generating - you have to pay Income Tax on Part of Salary or Net Profit as Generated in after all Income Tax Laws. Now from the left out Income from Taxes you have to pay Indirect Taxes
Indirect Tax
1. For Living: You have to Pay Tax in form of Stamp Duty and Registration Cost. Additionally - Service Tax on Water Bill, Electricity Bill, Telephone Bill month on month plus the Yearly Property Tax
2. For Commuting: You need to own a car for which pay up very high Taxes adding up cost of car in form of Excise Duty, VAT, Road Tax. Then for commuting - has to pay high Excise Duty and VAT on Petrol and Diesel. Additional is Toll Tax paid for using National Highway and moving from one state to other state
3. For Shopping: VAT on Goods Purchased is added up whether you buy from Online Store or Nearby Departmental Store
4. For Entertainment: Eating Food in restaurant, Watching Movies or shows - all entails Taxes as Payable
5. Repairs, Services: Any Services you entail from Professional in form of Repairs done for your Car, Electronics or any Goods or even Consultancy - have to pay Service Tax for same

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