Skip to main content

If income Tax Already paid, Why you need to pay other taxes? How?

The taxes are of two type.

What you are paying are direct taxes. the government can not solely rely on direct taxes to collect the resources. Moreover higher taxes of a singular type will cause widespread tax evasion. So the government has to levy indirect taxes like Service tax, excise, VAT etc.
So the collection of various taxes ensures that the burden of a particular tax does not fall on selected types of people and is broad-based like excise/service tax which all of us bear in as the component of the cost of goods which we buy or consume.
Taxes in India are based on aspect theory.
Consider this example. You booked a flat in a project wherein the construction is in progress. The taxes applicable in this case are
1) VAT – For goods being sold to you ie steel, cement, sand etc forming part of construction material
2) SERVICE TAX – For service being rendered to you ie labor involved in the construction
3) INCOME TAX – Developer needs to pay taxes on profit earned by him from the sale of apartments
4) STAMP DUTY – On registration of this property.
These are apart from labor licenses, various cess and other like taxes which government collects.

Comments

Post a Comment

Popular posts from this blog

Benefits of Filing ITR on Time - Avoid Penalties & Other Benefits | Certicom

Benefits of Filing Income Tax Return on time – AY 2018-19 1. Easy Loan Approval Registration of  ITR  will help individuals, when they need to apply for a vehicle loan (2-wheeler or 4-wheeler), mortgages, etc. All major banks can request a copy of the tax return 2. Claim tax refund If you have a refund for your  income tax , you will need to submit a tax return to claim the refund. 3. Income and address of evidence Income tax can be used as proof of income and address. 4. Quick Visa Processing Most embassies and consulates must submit a copy of your tax return in the past two years when a visa application is submitted. 5. Forward your loss If you sign up again within the due date, you will be able to claim losses over the next few years, which can be used to receive income from subsequent years. 6. Avoid penalties If you have to return your tax return, you will not be entitled to tax, up to Rs.5,000. 7. Refer to and earn up to Rs. 3000 Refer and get Rs
Post a Comment
Read more

Due Date For Filing ITR | Audit Reports Extended By 15 Days | Certicom

Due Date For Filing Income Tax Return, Audit Reports Extended By 15 Days The taxman last month announced the extension of the maturity date of September 30 by a similar 15 days.  The Government on Monday extended the due date for submission of income tax returns (ITR) and audit reports. The Direct Tax Center Board, the top policy-making body of the Income Tax Department, said the due date for filing  income tax returns  and the audit report for Assessments 2018-19 (2017-18 financial year) is October 31, 2018 for certain. taxpayer category. Monday’s step marks the second extension given by the  Direct Tax  Center Council to assessors whose bookkeeping must be audited. The move comes after the tax officer considers representation from stakeholders, he said in a statement. The taxman last month announced the extension of the maturity date on September 30 by the same 15 days, until  October 15, 2018 . Submission of income tax returns by paid taxpayers and those choosing the Estim
1 comment
Read more

Misconceptions on TDS |Tax Deducted at Source | Certicom

Misconceptions about TDS (Tax denied at source) I recently published articles on TDS for periodic deposits and TDS for the withdrawal of the EPF. I received lots of TDS comments/questions about the amount of the source. I have noticed that there are many  misconceptions   about TDS. Many investors think that TDS refusal completely removes their tax liability. Another misrepresentation is – “ Without TDS means, without a tax obligation “. What is TDS? The tax amount of the source or TDS is a tax collection process from the tax department. This involves collecting revenue at the very source of income. It is an essentially  indirect tax  collection method that combines the concepts of “pay as you earn” and “collect as you earned.” Example:  You reserve a bank fixed deposit for Rs 3 Lakh for 1 year @ 10% per annum. You will earn an income of interest of 30,000 pounds per year. The bank will deduct TDS at a rate of 10%, for example, 3,000 rubles (10% from 30,000 rubles) and deposi
Post a Comment
Read more