TAX

 

TAX Stands for Taxation

INTRODUCTION

Let us begin by understanding the meaning of “TAX”. TAX is a fee charged by a govt. on a product, income or  activity. Govt.further  used that  fees money for society  development and for social works etc. There are two types of taxes - @ DIRECT TAX  &  @ INDIRECT TAX .

·      DIRECT TAX : when tax directly imposed on the income of the person is known “direct  tax” . Direct tax also known as “INCOME TAX” ..

·      INDIRECT TAX: when tax imposed on price of goods and services are known as “ indirect tax”. This tax levied on goods and services indirectly and people take too much tax from people at the time of selling of goods , so govt. of india disburse that tax and  introduced only one tax which known as “GST”. GOVT.  set slabs for tax imposition on goods and services.

 

The CONSTITUTIONAL powers provide that the central government is empowered to impose INCOME TAX on all taxable income of all persons including :

1.   Individuals

2.   HUFs

3.   FIRMS

4.   JOINT STOCK COMPANIES

5.   AOP

6.   BOI.

However, the taxation provision are different for different  kinds of assesse for different kinds of incomes. The guidelines regarding execution of income tax provision in india is governed by the provisions comprised in The “INCOME TAX ACT, 1961”, income tax rules 1962, notification and circular ISSUED by “ central board of direct tax” ( CBDT) from time to time.