Monday, 14 March 2016

Tax india, Meaning of tax , Type of tax India, Why tax levied, Income tax law, income tax act, Annual Finance Acts, Income Tax Rules

Meaning of tax

Tax is like a fee charged by a government on product , service or income. There are two type of tax Director Taxes and Indirect taxes. director taxes is like
Income tax,
Corporation taxes,
Property taxes,
Estate taxes,
Gift taxes

And Indirect taxes is like

Customs duty,
Central excise duty,
Service tax,
Sales tax,
Value added tax (vat),
Goods and Service tax (GST)
Securities transaction tax,

If tax is levied directly on the income or wealth of a person it is direct tax and if tax is levied on price of product or service then it is called indirect tax

Why taxes Levied ?

The reason for levy of taxes is that the taxes is the basic source of revenue to the government. Revenue is utilized for expenses of government like defence, education , health care, Infrastructure facilities like roads, dams, etc.

The some are Fundamentals of income tax  Law

1 Income Tax Act (1961)
2 Annual Finance Acts
3 Income Tax Rules
4 Circulars/ Notifications
5 Legal Decision of Courts

Income Tax Act, (1961):

The levy Income tax in India is operated by the income tax Act, 1961.This Act come on 1st April, 1962. This Act Include approx 298 sections and XIV schedules. The Income tax act undergo change every year some  section with addition and deletion by Annual Finance Act Passed by parliament. Power Given by Income Tax Act, 1961.

Annual Finance Acts

Evert year in India The finance minister of The Indian Government presents budget in the parliament. at last date of Feb. Month in that presentation there are two part, Part (A) and Part (B). Part (A) is budget proposed policies and Part (B) is detailed  tax proposals that is also called finance bill ones finance bill is approved by parliament and gets the assent of the president, it become the finance Act.

Income Tax Rules

The Central board of Direct Taxes (CBDT) is authority to make rules for purposes of the Act. For proper administration of the income tax Act CBDT make rules form time to time, This rule are called income tax Rules 1962

Circulars/ Notifications

circulars are issu by the CBDT the Central Board Of  Direct Taxes  deal with specific problems and clarify doubts regarding the scope and meaning of the provision this circulars are issued for the guidance of the officers and assessee

Legal Decision of Courts

The Supreme Court is the top court of the country and the law laid down by the Supreme court is the of the land . The decisions given by high courts will apply in the respective states and jurisdiction

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