A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. An indirect tax is one that can be passed on-or shifted-to another person or group by the person or business that owes it.

What is difference between direct tax and indirect tax?

A direct tax is one that the taxpayer pays directly to the government. These taxes cannot be shifted to any other person or group. An indirect tax is one that can be passed on-or shifted-to another person or group by the person or business that owes it.

What are the basic concepts of income tax?

Taxes are broadly divided into two parts namely, Direct Tax and Indirect Tax. Direct Tax is levied directly on the income of the person. Income Tax and Wealth Tax are the part of Direct Tax. Whereas, in indirect taxes, the person who pays the tax, shifts the burden to the person who consumes the goods or services.

What are the objectives of taxation in developing countries?

The primary purpose of taxation is to raise revenue to meet huge public expenditure. Most governmental activities must be financed by taxation. But it is not the only goal. In other words, taxation policy has some non-revenue objectives.

What are the main principles of taxation and its purpose?

These are: (1) the belief that taxes should be based on the individual’s ability to pay, known as the ability-to-pay principle, and (2) the benefit principle, the idea that there should be some equivalence between what the individual pays and the benefits he subsequently receives from governmental activities.

Is TCS an indirect tax?

TCS or Tax Collected at Source, on the other hand, is a type of indirect tax that is collected by a seller from the buyer when the latter makes any purchase from the former. According to the IT Act, there are only certain goods such as scrap, timber wood, minerals, etc. on which TCS is applicable.

Why is taxation is very important in our country and in your course?

Taxation not only pays for public goods and services; it is also a key ingredient in the social contract between citizens and the economy. All governments need revenue, but the challenge is to carefully choose not only the level of tax rates but also the tax base.

On which amount TCS is calculated?

Here, the net value of taxable supplies for TCS collection will be Rs. and TCS @ 1%, i.e Rs. 50,000 will be deducted by the e-commerce operator. Hence, the final payment to be made to the supplier is Rs

What do you understand about taxation?

Taxation refers to the practice of a government collecting money from its citizens to pay for public services. One of the most frequently debated political topics is taxation. Taxation is the practice of collecting taxes (money) from citizens based on their earnings and property.

Is TDS and income tax same?

What is TDS? TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax.

What is TCS tax rate?

2. Goods covered under TCS provisions and rates applicable to them

Is TDS same as TCS?

TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. TCS is the tax which is collected by sellers while selling something to buyers. TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc.

What is TDS rate?

3. TDS rates applicable for resident of India

What is a tax in simple words?

Tax is money that people have to pay to the government. For example, taxes are used to pay for people who work for the government, such as the military and police, provide services such as education and health care, and to maintain or build things like roads, bridges and sewers.

What is tax and its types?

Types of Taxes: There are two types of taxes namely, direct taxes and indirect taxes. You pay some of them directly, like the cringed income tax, corporate tax, and wealth tax etc while you pay some of the taxes indirectly, like sales tax, service tax, and value added tax etc.