Taxes To tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law in India Home to the ancient Indus Valley Civilisation and a region of historic trade routes and vast empires, the Indian subcontinent was identified with its commercial and cultural wealth for much of its long history. Four major religions, Hinduism, Buddhism, Jainism and Sikhism originated here, while Zoroastrianism, Judaism, Christianity and Islam are levied by the Central Government The Government of India, officially known as the Union Government and also known as the Central Government, was established by the Constitution of India, and is the governing authority of a union of 28 states and seven union territories, collectively called the Republic of India. It is seated in New Delhi, the capital of India and the State India is a federal union of states comprising twenty-eight states and seven union territories. The states and territories are further subdivided into districts and so on Governments. Some minor taxes are also levied by the local authorities such the Municipality or the Local Council.

The authority to levy a tax is derived from the Constitution of India Constitution of India is the supreme law of India. It lays down the framework defining fundamental political principles, establishing the structure, procedures, powers and duties, of the government and spells out the fundamental rights, directive principles and duties of citizens. Passed by the Constituent Assembly on 26 November 1949, it came which allocates the power to levy various taxes between the Centre and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law."[1] Therefore each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament The Parliament of India is the federal and supreme legislative body of India. It consists of the office of President of India and two houses, the lower house, known as the Lok Sabha and the upper house, known as the Rajya Sabha.. It is located in New Delhi at Sansad Bhavan on Sansad Marg. Any bill can become an act only after it is passed by both or the State Legislature Legislative Assembly is the name given in some countries to either a legislature, or to one of its branch. The name is used by a number of member-states of the Commonwealth of Nations, as well as a number of Latin American countries.

Contents

Central Board of Direct Taxes

The Central Board of Direct Taxes (CBDT) is a part of the Department of Revenue in the Ministry of Finance, Government of India The Government of India, officially known as the Union Government and also known as the Central Government, was established by the Constitution of India, and is the governing authority of a union of 28 states and seven union territories, collectively called the Republic of India. It is seated in New Delhi, the capital of India. The CBDT provides essential inputs for policy and planning of direct taxes In the general sense, a direct tax is one paid directly to the government by the persons on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax. In this sense, a direct tax is contrasted with an in India and is also responsible for administration of the direct tax laws through Income Tax Department. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. its not true though

Constitutionally established scheme of Taxation

Article 246[2] of the Indian Constitution, distributes legislative powers including taxation, between the Parliament and the State Legislature The Vidhan Sabha also known as Legislative Assembly is the lower house of state legislature in India. Members of the Vidhan Sabha are direct representatives of the people of the particular state as they are directly elected by an electorate consisting of all adult citizens of that state. Its maximum size as outlined in the Constitution of India is. Schedule VII[3] enumerates these subject matters with the use of three lists;

Separate heads of taxation are provided under lists I and II. There is no head of taxation in the Concurrent List (Union and the States have no concurrent power of taxation).[4] The list of thirteen Union heads of taxation and the list of nineteen State heads are given below:[5]

S. No. Parliament
1 Taxes on income An income tax is a tax levied on the income of individuals or business . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual other than agricultural income (List I, Entry 82)
2 Duties In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. It is a tax on certain items purchased abroad. Properly, a duty differs from a tax in being levied on specific commodities, financial transactions, estates, etc., and not on individuals; thus it is right to talk of of customs Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import or export of some goods may be restricted or forbidden, and the including export The term "export" is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer". In International Trade, & duties (List I, Entry 83)
3 Duties of excise An excise or excise tax may be defined broadly as an inland tax on the production for sale; or sale, of a specific good, or narrowly as a tax on a good produced for sale, or sold, within the country. Excises are distinguished from customs duties, which are taxes on importation. Excises, whether broadly defined or narrowly defined, are inland taxes, on tobacco Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as an organic pesticide and, in the form of nicotine tartrate, it is used in some medicines. It is most commonly used as a recreational drug, and is a valuable cash crop for countries such as Cuba, China and United States and other goods manufactured or produced in India except (i) alcoholic liquor A distilled beverage, liquor, or spirit is a drinkable liquid containing ethanol that is produced by distilling fermented grain, fruit, or vegetables. This excludes undistilled fermented beverages such as beer, wine, and hard cider for human consumption, and (ii) opium Opium is the dried latex obtained from opium poppies (Papaver somniferum). Opium contains up to 12% morphine, an opiate alkaloid, which is most frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids, such as papaverine, thebaine and noscapine. The latex is obtained, Indian hemp Hemp is the name of the soft, durable fibre that is cultivated from plants of the Cannabis genus, cultivated for commercial use and other narcotic drugs A drug, broadly speaking, is any substance that, when absorbed into the body of a living organism, alters normal bodily function. There is no single, precise definition, as there are different meanings in drug control law, government regulations, medicine, and colloquial usage and narcotics, but including medicinal and toilet preparations containing alcohol or any substance included in (ii). (List I, Entry 84)
4 Corporation Tax Corporate tax or company tax refers to a tax imposed on entities that are taxed at the entity level in a particular jurisdiction. Such taxes may include income or other taxes. The tax systems of most countries impose an income tax at the entity level on certain type of entities (company or corporation). Many systems additionally tax owners or (List I, Entry 85)
5 Taxes on capital value of assets Property tax, or millage tax, is an ad valorem tax that an owner is required to pay on the value of the property being taxed. Property tax can be defined as "generally, tax imposed by municipalities upon owners of real property within their jurisdiction based on the value of such property." There are three species or types of property:, exclusive of agricultural land, of individuals and companies, taxes on capital of companies (List I, Entry 86)
6 Estate duty An inheritance tax is a tax which arises on the death of an individual. It is a tax on the estate, or total value of the money and property, of a person who has died. In international tax law, there is a distinction between an estate tax and an inheritance tax: an estate tax taxes the personal representatives of the deceased, while an inheritance in respect of property other than agricultural land (List I, Entry 87)
7 Duties in respect of succession to property An inheritance tax is a tax which arises on the death of an individual. It is a tax on the estate, or total value of the money and property, of a person who has died. In international tax law, there is a distinction between an estate tax and an inheritance tax: an estate tax taxes the personal representatives of the deceased, while an inheritance other than agricultural land (List I, Entry 88)
8 Terminal taxes on goods or passengers, carried by railway, sea or air; taxes on railway fares and freight (List I, Entry 89)
9 Taxes other than stamp duties Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as: cheques; receipts; military commissions; marriage licences; land transactions; etc. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally on transactions in stock exchanges A stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities and futures markets A futures exchange or derivatives exchange is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future (List I, Entry 90)
10 Taxes on the sale or purchase of newspapers and on advertisements published therein (List I, Entry 92)
11 Taxes on sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce (List I, Entry 92A)
12 Taxes on the consignment of goods in the course of inter-State trade or commerce (List I, Entry 93A)
13 All residuary types of taxes not listed in any of the three lists (List I, Entry 97)
S. No. State Legislature The Vidhan Sabha also known as Legislative Assembly is the lower house of state legislature in India. Members of the Vidhan Sabha are direct representatives of the people of the particular state as they are directly elected by an electorate consisting of all adult citizens of that state. Its maximum size as outlined in the Constitution of India is
1 Land revenue, including the assessment and collection of revenue, the maintenance of land records, survey for revenue purposes and records of rights, and alienation of revenues (List II, Entry 45)
2 Taxes on agricultural income (List II, Entry 46)
3 Duties in respect of succession to agricultural income (List II, Entry 47)
4 Estate Duty in respect of agricultural income (List II, Entry 48)
5 Taxes on lands and buildings (List II, Entry 49)
6 Taxes on mineral rights (List II, Entry 50)
7 Duties of excise for following goods manufactured or produced within the State (i) alcoholic liquors for human consumption, and (ii) opium, Indian hemp and other narcotic drugs and narcotics (List II, Entry 51)
8 Taxes on entry of goods into a local area for consumption, use or sale therein (List II, Entry 52)
9 Taxes on the consumption or sale of electricity Electricity is a general term that encompasses a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning and static electricity, but in addition, less familiar concepts, such as the electromagnetic field and electromagnetic induction (List II, Entry 53)
10 Taxes on the sale or purchase of goods other than newspapers (List II, Entry 54)
11 Taxes on advertisements other than advertisements published in newspapers and advertisements broadcast by radio or television (List II, Entry 55)
12 Taxes on goods and passengers carried by roads or on inland waterways (List II, Entry 56)
13 Taxes on vehicles suitable for use on roads In the UK road tax is used as a shorthand term for vehicle excise duty, the sum paid to the government to acquire a vehicle licence for the use of public roads of most motor vehicles. For car tax in the U.S. see vehicle excise duty. For motor tax in the Republic of Ireland see Motor Tax in the Republic of Ireland (List II, Entry 57)
14 Taxes on animals and boats (List II, Entry 58)
15 Tolls A toll road is a privately or publicly built road for which a driver pays a toll (a fee) for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds. The building or facility in which a toll is collected may be called (List II, Entry 59)
16 Taxes on profession, trades, callings and employments (List II, Entry 60)
17 Capitation taxes (List II, Entry 61)
18 Taxes on luxuries, including taxes on entertainments, amusements, betting and gambling (List II, Entry 62)
19 Stamp duty Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as: cheques; receipts; military commissions; marriage licences; land transactions; etc. A physical stamp had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally (List II, Entry 63)

Any tax levied by the government which is not backed by law or is beyond the powers of the legislating authority may be struck down as unconstitutional.

Income Tax Act of 1961

The major tax enactment in India is the Income Tax Act of 1961 passed by the Parliament The Parliament of India is the federal and supreme legislative body of India. It consists of the office of President of India and two houses, the lower house, known as the Lok Sabha and the upper house, known as the Rajya Sabha.. It is located in New Delhi at Sansad Bhavan on Sansad Marg. Any bill can become an act only after it is passed by both, which imposes a tax on income of individuals The Indian Income Tax department is governed by the Central Board for Direct Taxes and is part of the Department of Revenue managed by Indian Revenue Service (IRS), under the Ministry of Finance, Govt. of India and corporations[6]. This Act imposes a tax on income under the following five heads:[7]

However, this Act is about to be repealed and be replaced with a new Act which consolidates the law relating to Income Tax and Wealth Tax, the new proposed legislation is purported to be called the Direct Taxes Code (to become the Direct Taxes Code, Act 2010). The new Act is purported to come into effect from 1st April, 2011

Other Major Taxation Laws

Other major taxation laws enacted by the Parliament are;

  1. Wealth Tax Act, which has a regular history of being passed and repealed;
  2. Service Tax, imposed under Finance Act, 1994, which taxes the provision of services provided by service providers within India or services imported by Indian from outside India;
  3. Central Excise Act, 1944, which imposes a duty of excise on goods manufactured or produced in India;
  4. Customs Act, 1962, which imposes duties of customs, counterveiling duties and anti-dumping duties on goods imported in India;
  5. Central Sales Tax, 1956, which imposes sales tax A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions. Laws governing the tax may on goods sold in inter-state trade or commerce in India;
  6. Transaction Tax, which taxes transactions of sale of securities and other specified transactions;

The major taxation enactments passed by the State Legislatures The Vidhan Sabha also known as Legislative Assembly is the lower house of state legislature in India. Members of the Vidhan Sabha are direct representatives of the people of the particular state as they are directly elected by an electorate consisting of all adult citizens of that state. Its maximum size as outlined in the Constitution of India is are in the nature of the following;

  1. Excise duties on tobacco, alcohol and narcotics;
  2. Sales tax, on sale of goods within the State;
  3. Stamp duties, on sale of property situated within the State;
  4. Entertainment taxes

Income tax rates

In terms of the Income Tax Act, 1961, a tax on income is levied on individuals, corporations and body of persons. The rate of taxes are prescribed every year by the Parliament The Parliament of India is the federal and supreme legislative body of India. It consists of the office of President of India and two houses, the lower house, known as the Lok Sabha and the upper house, known as the Rajya Sabha.. It is located in New Delhi at Sansad Bhavan on Sansad Marg. Any bill can become an act only after it is passed by both in the Finance Act, popularly called the Budget The Union Budget of India, referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget has to be passed by the House before it can come into effect on April. In terms of the Finance Act, 2008, the rate of tax for individuals, HUF, Association of Persons (AOP) and Body of individuals (BOI) is as under;

For the Assessment Year 2009-10 Taxable income slab (Rs.)

Note : -

Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any. A marginal relief may be provided to ensure that the additional IT payable, including surcharge, on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than this mentioned amount.

Overall taxation

Total tax receipts of Centre & State amount to approximately 18% of national GDP.

Gross tax revenues of the Government of India have grown steadily from around Rs.1 billion in 1945 to over Rs.1 trillion by 1995. They are expected to reach Rs.8 trillion by 2010 at the current rate of growth. Below is a chart of gross tax revenues (before splitting shares of States) of the Government of India assessed by the Finance Commissions from time to time with figures in millions of Indian Rupees.

Year Gross Tax Revenues Excise Duties Corporation Tax Customs Income Tax Service Tax Wealth Tax
1945 463 753 736 1,023
1950 675 404 1,571 1,327
1955 1,452 370 1,667
1960 3,949 1,375 1,275
1965 16,827 8,141 3,716 4,195 2,940
1970
1975
1980
1985
1990
1995 1,060,220 458,220[1] 145,860 299,010 128,600
2000 1,982,260 768,390[2] 379,780 535,720 315,900
2005 3,437,030 1,147,410 968,450 581,560 559,810 171,220 1,490

^ includes service tax, et al.

Below is a chart of non-tax revenues of the Government of India assessed by the Finance Commissions from time to time with figures in millions of Indian Rupees.

Year Non-tax Revenues Interest Dividend
1995 355,210 180,460 58,210[3]
2000 574,640
2005 701,350

^ includes dividend and profit from public sector undertakings and RBI, et al.

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Corporate taxation policies - Japan, India, China, Brazil?
Q. I'm trying to tabulate corporate tax rates for counties such as India and China. If you have the numbers or have an idea where to obtain the numbers, that would be a tremendous help.
Asked by tolstoi1 - Sun Aug 24 09:03:52 2008 - - 1 Answers - 0 Comments

A. Brazilian taxation police is very complicated, unfortunatelly. It s impossible to explain it on Y!answers. You can find the taxation charge at this site: but it s in portuguese. You can use Babel fish to translate it to English. I ll show you a resume: em 1947 = 13,8% do PIB; em 1965 = 19% do PIB; em 1970 = 26% do PIB; em 1986 = 26,2% do PIB; em 1988 = 26,4% do PIB; em 1990 = 30,5% do PIB; em 1991 = 25,21% do PIB; em 1992 = 25,85% do PIB; em 1993 = 25,72% do PIB; em 1994 = 29,46% do PIB; em 1995 = 37,3% do PIB; em 1996 = 28,97% do PIB; em 1997 = 29,03% do PIB; em 1998 = 29,74% do PIB; em 1999 = 32,15% do PIB; em 2000 = 33,18% do PIB; em 2001 = 34,7% do PIB; em 2002 = 36,45% do PIB; em 2003 = 34,92% do PIB; em 2004 =… [cont.]
Answered by zezinho - Mon Aug 25 16:39:38 2008

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