Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: form 3cd :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: due date for vat payment :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Direct Tax »
 Businesses need not deduct GST on advances received for goods supply: CBEC
 Redress taxpayers' grievances on priority: CBDT to I-T department
 No tax relief on EPF interest if not employed: ITAT
  CBDT signs 7 more unilateral APAs with taxpayers
 Income tax returns (ITR) filing: Get capital gains tax exemption on new property; here is how
 Reach out to non-filers of GST returns: CBEC to fields offices
 CBDT may shelve plan to seek corporate tax estimates in advance
 IT expertise at banks' board level a must, says RBI ED
 Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961
 To avoid double-taxation CBDT says no tax at upstream foreign fund if local fund paid already
 CBDT extends due date for filing Income Tax Returns and Tax Audit Reports

What are direct taxes?
February, 25th 2013

Taxes are levied by the government on various individuals, firms, companies and other entities to fund the expenses for running the country. There are different ways in which taxes can be classified and one of the prominent categories of tax consists of direct taxes. These are taxes that each one of us will face and here are some important points related to these taxes.

Nature
Direct taxes are all those taxes whose final burden remains on the taxpayer. This will give rise to a situation where the person or the entity on whom the tax is levied and the person or entity who ends up paying the final tax is one and the same. The tax cannot be shifted to someone else as this has to be paid by those on whom the tax is levied.

Example
The most common example of a direct tax is the Income tax that individuals pay on the taxable income that they earn during the financial year. The other example of this is also the corporation tax that companies pay on the profits that they make during the year. Both these taxes arise on the income earned and they cannot be shifted to anyone else making them direct taxes.

How is it levied?

There is a very clear way and manner in which the direct tax is levied so for example in case of Income Tax this is based on the income earned. The exact receipts that would be included and other deductions that would be allowed are also mentioned so that the taxpayer can calculate the amount of the burden and then pay this amount to the government.

Rate

On the question of the extent of the impact of direct taxes the rate at which the tax is levied is important because this ensures the final collection of the tax amount. A lower rate will get more people to comply with the process and this can lead to a larger base of people paying the tax and consequently a larger tax collection. A very high rate will lead to people looking for ways to save tax and this can lead to a smaller tax base.

Changing nature

India has witnessed a change in the nature of tax collections over the last decade. In the budget for the financial year 2000-01 direct taxes constituted 36 per cent of the total tax revenue. In the last budget of 2012-13 the share of direct taxes in the total projected tax revenue has crossed the 50 per cent mark to touch 52 per cent. Increasingly a larger part of the total tax collected now consists of direct taxes and this shows how compliance has increased and also that the tax base has grown.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions