Direct tax is a charge levied upon a person on his Income or profit generated through business. It is straight income paid by the individual directly to the government.
The tax regime has its key hold on every individual as well as in the corporate sector. With the constantly evolving Indian tax legislative and judicial environment one has to keep an open eye on the complex changes to run business smoothly and to avoid penalty for non payment of the levied taxes by the tax authorities.
Our team of expert tax professionals in imaster lend you a hand to easily mitigate various issues pertaining to different Direct tax advisory compliances.
Tax imposed on the earnings and profit gain of the individuals, cooperative societies, partnership firms and companies. Income Tax is collected on the basis of finance Act passed every year under Central budget and the Income Tax act 1961 aided by Income Tax rules 1962.
This tax is levied upon companies and business associations in India. Such business associations are taxed on the revenue generated from their world wide dealings under the provisions of Income Tax Act 1961. A corporation is taxed on its being resident of India, or if it is incorporated in India or if its control or administration is rooted in India.
It is also called Estate Tax or Death Duty. It arises on the death of an individual leaving behind property and wealth to its beneficiary. The tax is collected on the total value of money and property of a person who has died.
The Gift tax Act was comprised on 1st April 1958. It was levied by the government in all parts of the country except Jammu and Kashmir. As per this Act any Gift that crosses the limit of 25,000 in the form of cash, draft or check, or others, from the draft or check, or others from the one who doesn't have blood relation with the beneficiary are taxable.
Direct Taxes at State Level:
One of the most important source of revenue to the government is through Land Revenue. The state share is greatly generated via output from land. The land revenue is abolished in some parts of the city or the rates varies from one state to another.
The Direct Taxes are imposed on the principles of the “Ability of the Tax payer to pay.” The taxes are equitable because, people with large income need to pay more direct taxes than the person with the lower income.
The one thing that comes with the Direct Tax is certainty. The tax payer knows the amount of tax to be paid annually. At the same time the Government is also certain about the revenue it can receive as tax. Hence, the element of certainty is one of the best part of direct tax.
The rate of tax increases if the income of the tax payer increases. Hence increased tax rates can bring in more money to the government.
Demerrits of Direct Taxes:
Direct Taxes are usually complex with lot of procedures and exemptions and provisions which make it complex for a common man to understand.
If you need help for your individual assistance or for your organisation our esteemed tax professionals are here to serve you with the right advice in terms of producing necessary “returns” and for preparing account statements.
If you have any further questions regarding the above, please Click Here