Tax Structure in India

At first we need to assess the characteristics for ordinary income. Ordinary income is generated from personal exertion (i.e. Salary income), property (rent, interest) and carrying out business activities. According to ITAA 1997, section 6-5 (1) , the assessable income constitutes income derived from ordinary concepts. There are some provisions listed under section 10-5 may be effect the treatment of ordinary income.

interest in the company. On the one hand, they can enjoy tax efficiency by paying tax of

* Corporations incur taxes at the corporate level at marginal rates; while, distributions to shareholders are taxed at dividend rate

The United States of America is a federal republic with autonomous state and local governments. Taxes are imposed in the United States at each of these levels. These include taxes on income, payroll, property, sales, imports, estates and gifts, as well as various fees. Taxes are imposed on net income of individuals and corporations by the federal, most state, and some local governments. Citizens and residents are taxed on worldwide income and allowed a credit for foreign taxes.

Foremost, most nation’s taxing systems characteristically have five main features that either make them greatly competitive or not. Competitiveness includes desirability for both the society and business activity. A nations corporate rate, its consumption tax, property tax, the individual tax, and its international (global or territorial) are what make up the core features of competiveness. But is the competiveness of a nation’s taxing system related for both industrialized and developing nations? The answer is yes, but not completely.

2. What are the benefits of taxes for societies and individuals? The taxes can be used for anything that needs work on or whatever they can use or need it for. So it helps a lot with things like constructions, transportation, and anything in the city or state.

Income tax is considered to be one of the greatest ways that a country amasses wealth through known means from the public in order to use the funds for the benefit and welfare of the community. Since a very long time, there have been many discussions and debates on the way the finds collected for income tax have been spend. There are many who think that there is a lot of mismanagement and feel that the amount of the actual money spent on welfare of the community is far less that what gets collected by the country.

If the company locate in one of India’s six Free Trade Zones the tax will be lower. However, still higher than the U.S.

Government requires fund to take care of its citizens and provide development measures within its jurisdiction. So one of the sources is levy of taxes in direct and indirect form. Irrespective of Tom, Dick and Harry , one cannot avoid the taxes. Before getting into know about how you directly pay taxes, lets look how indirect tax goes from your pocket.

Taxes play a big role in the economy and are a key factor when trying to encourage and promote economic growth. Taxation provides a way to reallocate economic resources to individuals with special needs or low incomes. In the United States, there are several different types of taxes but the main two are federal and state. The federal government cannot tamper with state taxation in any way. Every state has a tax system completely

According to all the workings, the taxable income is calculated and provided in a table below.

Taxation is a levy or a charge imposed by a government on its citizens to raise revenue that finances public spending. The government of every country of the

Tax system is a legal system of imposing and collecting taxes from the citizens of the country. As it has been stated by Albert Einstein, the hardest task in the world is to understand the tax system of a country. The United States’ tax system is so complicated that its tax code contains almost 3 million words and 6,000 pages. Moreover, the taxes implied by city and state governments add more complexity to the federal taxation system. In this case, we do not need to understand the complexity of tax code system in order to get acquainted with the significant role of taxes in American society.

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

GST is a comprehensive tax which will be levied on both goods and services. It is a value added tax where tax is imposed only on the value added at each stage in the supply chain. Presently the Indian tax structure is very complex. There are a large number of taxes on goods imposed by the central and the state government. There are central taxes like central excise duty, additional excise duty, additional custom duty, central sales tax, central surcharges and cesses. Then there are state taxes like VAT/sales tax, purchases tax, luxury tax, tax on lottery, betting and gambling, state cesses