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 EinsteinTaxation 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% |
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 Tax1. 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
No comments:
Post a Comment