What are the types of taxation? Follow

As per experts, taxes are a must pay by all citizens of the nation for making a better and developed nation. Many of us are still not aware of the fact the government of different nations requests to pay taxes in multiple manners. We can call Taxes as the finance charges which are imposed on the citizens of the nation or any company both by state and central government. It is vital for all of us to have a clear idea about the types of taxation. Earlier there used to be 2 types of traditional taxes:

1. Direct Taxes:  Income Tax, Capital Gain Tax, Security Transaction Tax, Perquisite tax, and corporate tax
2. Indirect taxes: Sales Tax, Service Tax, Customs Duty and Octroi, Excise duty and Value Added Tax

But after July 2017 there is one indirect tax which is charged by the government of India. This tax is known as GST or the Goods and Services Tax. With the introduction of this tax named GST initiated the removal of other types of taxes as well as charges like Value Added Tax (VAT), customs duty, octroi, Central Value Added Tax (CENVAT), besides customs as well as excise taxes.

There are 3 different types of levies which are part of GST:

•    CGST

•    SGST/UTGST

•    IGST

There are few other taxes which are part of the Indian taxing system and that are:

1.    Property tax

2.    Professional tax

3.    Entertainment tax

4.    Education Cess

5.    Registration fees, stamp duty, transfer tax

6.    Entry tax

7.    Road tax and toll tax

As a responsible citizen of India, we all should make payment of taxes well in time based on the nature of income and facilities we are getting.  For better information on this aspect, it is advisable to get in touch with tax experts. 

Read more:  What is tax liability?