TATI ON

PR E S E N

ON
INDIAN TAX SYSTEM
INTRODUCTION ON
TAXATION IN INDIA
TYPES OF TAXES IN INDIA
INCOME TAX
 DEFINITION OF INCOME TAX
∗ “ An income tax is
tax levied
on financial
income of
person co -
operation or
other legal
entity .”
 PRINCIPLES
ØPersonal Earnings
ØCapital Gains
ØBusiness Income
ØRates For Different Types Of Income May Vary And
Some May Not Be Taxed At All.
ØCapital Gains May Be Taxed When Realized
ØBusiness Income May Only Be Taxed If It Is
Significant
ØPersonal Earnings May Be Strictly Defined
ØTax Rates May Be Progressive, Regressive, or Flat
ØA Progressive Tax Taxes Differentially Based On How
Much Has Been Earned
ØPersonal Income Tax Is Often Collected On A Pay-as-
you-earn Basis
∗
 TAX RATES
For Individuals, HUF, Association Of Persons


(AOP) And Body Of Individuals (BOI):


 WEALTH TAX

∗ Wealth tax came into

existence on 1st April
1957. Wealth tax is derived
from the property owned by
the proprietor. The
proprietor needs to pay tax
every year on property
owned by them. The
residential property that
does not yield any income
to its owner is also
subjected to wealth tax.
Wealth tax is termed as
most significant direct tax.
 WEALTH TAX

As per the wealth tax act, wealth tax is applicable to

the following:
∗ An individual person
∗ A group of people who own a property
∗ A company or organization
∗ A Hindu undivided family (HUF)
∗ Person belongs to 1-by -6 categories
∗ A representative or heir of a dead person
∗ Non corporative tax payer
∗
PROPERTY TAX
 PROPERTY TAX
∗ For income tax purposes in India, property
is considered as a source of income and
hence, tax is levied on that. Properties are
usually meant by real estates which
include any building, flat, shop etc. as well
as the land appurtenant to the building.
Under the Income Tax Act, incomes from
the properties are regarded as one of the
heads of income. The amount of tax is
calculated on the value of the property
being taxed.
 It is the local municipality
authority that levies property tax for the
maintenance of basic civic services in the
city. Unlike the countries like UK where the
 PROPERTY TAX
∗ India Property tax is levied on the real estates which consist of
buildings or land attached to the buildings. Vacant plots of land
without any adjoining building are not liable to be taxed under
this head. It will rather be taxed as income from other sources.
Following are the kinds of properties that are liable to be taxed
under property tax India:
∗
Ø Residential house (self-occupied or let out)
Ø Office Building
Ø Factory Building
Ø Godowns
Ø Flats
Ø Shops
SALES TAX
 SALES TAX

Sales tax is a tax on the

supply of goods and
certain services ,it is
charged at the time of
sale and then deposited
in the Government
treasury.
∗
∗
WHAT TYPES OF BUSINESS ARE
NOT LIABLE FOR SALES TAX?

∗
ØAgricultural Products
ØMost Of Pharmaceutical Products
ØEducational & Scientific Materials
ØEquipment For Fighting AIDS & CANCER
∗
VAT IN INDIA
 WHAT IS VAT?
∗
∗
Vat Means Value Added Tax
Vat Paid By Dealers On

Their Purchases Is Usually

Available For Set-off
Against The Vat Collected
On Sales.
VAT PROCESS
 EXCISE DUTY
Central excise duty is an indirect tax which is
charged on such goods that are manufactured
in India and are meant for domestic
consumption. The taxable fact is
"manufacture" and the liability of central
excise duty arises as soon as the goods are
manufactured. The tax is on manufacturing, it
is paid by a manufacturer, which is then
passed on to the customer
 CUSTOM DUTY
The Custom Duty in India  is one of
the most important tariffs. The custom
duty in India is regulated by the
Customs Act of 1962. The main purpose
of the custom duty in India is the
prevention of the illegal export and
import of goods. The rates of the
custom duty levied on the imported
and exported goods are assigned in
the Custom Act, 1962..
 CUSTOM DUTY IS LEVIED ON
∗ IMPORT OF
GOODS
∗
∗
∗ EXPORT OF
GOODS
 SERVISE TAX
∗ Service tax is an indirect tax
levied under the Finance Act,
1994, as amended from time
to time, on specified services.
At present, there are
approximately 96 categories
(including 15 new services
introduced by Budget 2009)
of net services taxable under
the service tax.


∗
∗
∗
WHO IS AUTHORIZISE TO
ADMINISTER SERVICE TAX

WHO IS LIABLE TO DEPOSITE

SERVICE TAX
 Don't Run Away From

It's Only For Our Benifits