What basis income tax is levied on?
Income Tax is a tax you pay directly to the government basis your income or profit. The Government of India collects income tax. Taxes are of two types - direct tax and indirect tax. Direct tax is the tax you pay on your income directly to the Government and is levied on profits and income.
Income tax is a percentage of an individual person's or Business' income that is paid to the government to run the nation smoothly, fund infrastructural development, pay salaries of those employed by the state or central governments, etc. All such taxes are levied based on the passing of a law.
How is income tax levied India?
The tax structure in India is divided into direct and indirect taxes. While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assessees themselves.
Currently, the basic income exemption for an individual of age between 60 and 80 years is Rs 3 lakh for FY15 and the basic exemption for an individual above 80 years of age is Rs 5 lakh.15-Jun-2017
What is the nature of income tax in India Mcq?
b. Explanation: There are three rates of income tax are applicable in India i.e. 5%, 10%, 20% and 30% which is progressive in nature initially but later on it becomes Proportional which is called degressive rate .12-Aug-2021
Income tax is a direct tax that a government levies on the income of its citizens. The Income Tax Act, 1961, mandates that the central government collect this tax. The government can change the income slabs and tax rates every year in its Union Budget. Income does not only mean money earned in the form of salary.
Which tax is levied by the state government only?
Q. Which among the following taxes is levied by state government only? Notes: Entertainment tax is levied by state government only. Now it has been subsumed under Goods and Service Tax by 101st Amendment to the Indian Constitution.
1. Role of the Central and State Government. The taxation system in India empowers the state governments to levy income tax on agricultural income, professional tax, value added tax (VAT), state excise duty, land revenue and stamp duty.
Who will pay income tax?
For the financial year 2022-23, an Individual is required to pay income-tax if his/her total income exceeds Rs. 2,50,000. In case of resident individuals of the age of 60 years and above but below 80 years, the basic exemption limit is Rs. 3,00,000 and for resident individuals of 80 years and above, the limit is Rs.04-Apr-2022
Here is a list of 3 various kinds of income taxes-
Which of the following income is exempted from tax Mcq?
22) Gross total income of an assessee consists of income from salaries, income from house property, profits and gains of business or professions, capital gains and from other sources. 23) As per the Income Tax Act, 1961, agriculture income in India is exempted to tax.11-Aug-2022
Which income is not taxable in India?
agricultural income
a. Income tax slab rate for New Tax regime
Who introduced income tax in India?
James Wilson
In terms of Section 2 (31) of the Income Tax Act, 1961, a person has been defined to include (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of person or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificial juridical 25-May-2017
What is income tax with example?
If you earn more than ₹2,50,000, you must pay income tax according to your income bracket.Components for Calculating Income Tax.
Income taxes can be both progressive or proportional. Progressive taxes impose low tax rates on low-income earners and higher rates on those with higher incomes, while individuals are charged the same tax rate regardless of how much income they earn.
Which tax is not collected by Central Government?
The correct option is B Land revenue 2. The proceeds of the central excise duty is not shared between the Central and State Governments.
₹262500 + 30% of total income exceeding ₹15,00,000. New tax regime slab rates are not differentiated based on age group. However, under old tax regime the basic income threshold exempt from tax for senior citizen (aged 60 to 80 years) and super senior citizens (aged above 80 years) is ₹ 3 lakh and ₹ 5 lakh respectively
What are the 4 types of tax?
The Central Government collects income tax, customs duties, central excise duty, etc. The State Government gathers tax on agricultural income, professional tax, state excise duty, value-added tax, etc. Local Municipal Bodies take taxes, including water tax, property tax, etc.
What basis income tax is levied on?