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Tax And Finance >> Planning

Taxafin >> Taxes In India

Tax System in India

India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. In the last 10- 15 years, the tax system in India has undergone some significant changes. The entire system has been tremendously reformed. The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India.

Tax Levied by Central Government

Direct Tax

  • Personal Income Tax
  • Corporate Income Tax
  • Wealth Tax
  • Gift Tax
  • Capital Gain Tax

  • Indirect Tax
  • Central Excise & Custom Tax
  • Service Tax
  • Security Transaction Tax

  • Tax Levied by State Government

  • Sales Tax/VAT
  • Stamp Duty
  • Property Tax
  • Agriculture Income tax levied by State Govt on income from plantations
  • Luxury tax levied by certain State Government on specified goods
  • Professional Tax

  • Tax Levied by Local Bodies

  • Octroi/Entry Tax
  • Tax on untilities like water supply, drainage etc.

  • Double Tax Avoidance Treaty

    India has entered into DTAA with 80 countries including the US. In case of countries with which India has Double Tax Avoidance Agreement, the Tax rates are determined by such agreements. Domestic corporations are granted credit on foreign tax paid by them, while calculating tax liability in India.
    Authentic Details of Agreements with each countries can be viewed at http://law.incometaxindia.gov.in/DIT/intDtaa.aspx


    Overview of Indian Taxes
    Overview of Income Tax
    Overview of Gift Tax
    Overview of Wealth Tax
    Overview of Corporate Income Tax
    Overview of Service Tax
    Overview of Central Excise Tax
    Overview of Central Excise Tax-2
    Overview of Custom Duty



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