Types of Taxes

25 Most Famous Types of Taxes in India

Taxes is really is an important part of our life and that good for a contribution of the growing India and our responsibility is to do it. Tax is financial charges which we need to pay if we are under situated the income-tax. If you have the company and you have the good income and you are under in the income tax so need to pay it and save your money and life. Recently we see the demonetization of 500 and 1000 notes. That is the great step by the Indian Prime Minister and in the below list we are talking about the 25 most famous Taxes in India. The one quote is always we will not forget as “Taxes are paid nation are made”.

Taxes in India are made the India nation because we have to improve the financial condition of the country by given the tax. Most famous tax is the home tax, income tax, water tax etc and beyond it, other taxes are in the below list. By collecting taxes and by that amount will build the nation and that’s a great and needy thing for our country and make the people more responsible.

There are 25 most famous types of Taxes in India:

  1. Income Tax

Income tax is really very famous Taxes in India and all is known by this tax. That is payable in the situation when someone exceeds the taxable limit according to the Indian government. And income tax pay is based upon the prevailing rates.

  1. Capital Gains Tax

When someone sells the property, shares or precious material and they earn the profit so in that case capital gains tax is applied and this is also included infamous Taxes in India. Capital gain is having the difference between the asset and selling price.

  1. Securities Transaction Tax

Lots of people are not showing them profit and not paying the capital gain tax. In this situation, a government is able to tax only on that profit which they declare publicly. This is also a part of Taxes in India and this is generally called the STT (Security Transaction Tax).

  1. Perquisite Tax

This tax also called by the name of FBT (Fringe Benefit Tax) and that was abolished in the year 2009; this is the tax of benefits which is given by the employer to employee. This is a very famous kind of the Taxes in India and mostly applicable to the private companies.

  1. Corporate Tax

This tax is famous as payable on which income that is of co-operating operating in the India and cooperate tax is the annual tax. This is also a very important part of the Taxes in India. That is applied to the companies which have broadly classified in India as well as other countries.

  1. Sales Tax

This tax is regarding of sales of the movable goods and this is also a much-known Tax in India and applying in the export and import business. This is an interstate sales charges or tax by the union government and intra-State sales charge or tax done by the state government.

  1. Service Tax

We can understand that tax by the example, like mostly we have to pay the tax on the services, like telephone, tour, interior decoration, beauty parlor, financial as well as bank service etc. A so applicable tax on that kind of the services is called the Service Tax and includes the famous Taxes in India.

  1. Value Added Tax

Value Added tax is most famous Taxes in India because of the popular revenue of state government. Each and every state had the respective sales tax act and rates are varying according to the states. But this tax is well known and vital tax or charge of the states.

  1. Customs duty & Octroi (On Goods)

Custom duty tax situated under the indirect tax and this is a part of the famous Taxes in India. That is the charges on that good are imported into the India. That pays the duty charges on the good which comes from the country into the India.

  1. Excise Duty

That is the charges on the goods which are produced within a country and this is also a famous and most known Taxes in India. This tax is just opposite to the customs duty tax because which is kept the goods which come from outside of the country.  Exercise duty is also known by the name of Central Value Added Tax.

  1. Anti-Dumping Duty

Anti-Dumping Tax is directed to the goods which have exported by one country to another one country at the lowest price rather than the normal cost. So this is also including in the most famous Taxes in India. That is not exceeding any kind of the margin of the dumping of any goods.

  1. Professional Tax

That is very simple tax like if you are earning as a professional you need to pay as Professional Tax. This is also a part of the most common Taxes in India and that is mostly imposed to respective Municipal Corporations. Lots of Indian states are charges that tax.

  1. Dividend distribution Tax

This tax is imposed by the Indian Government and this is also included in the list of Taxes in India. That is the tax which is in the companies and that is the dividend paid to the investors of the company. Well the amount of dividend is the tax-free and now the dividend distribution tax is around 15%.

  1. Municipal Tax

Municipal Tax is known by all because it’s many famous Taxes in India and in the each city that tax has imposed as the property tax. Every owner of the particular property needs to pay that tax and rate are varying according to the city.

  1. Entertainment Tax

Entertainment tax is always applicable on any kind of the entertainment and a part of the list Taxes in India. Entertainment tax has been imposed by the state government and applicable to the each financial transaction. That transaction has related to the movie ticket, commercial exhibition and broadcasting service etc.

  1. Stamp Duty, Registration Fees, Transfer Tax

Sometimes we have to decide to buy any property and in this situation, we need to addition cost pay for the seller. So that is the part of transfer tax, stamp duty, and registration fee. That all are included in the single work of property buying and this is very famous Taxes in India.

  1. Education Cess, Surcharges

That Tax is deducted and that will use for the poor people in India and that education Cess are included as an income tax and also a part of the list Taxes in India. That is total 3% of the tax which is payable and that is mainly applicable to the income tax and exercise duty and service tax etc.

  1. Gift Tax

If you have to receive any gift which is clubbed with your earning or income so that you need to pay for that gift and this is also very famous part of the Taxes in India. That is called gift tax and if you receive any gift which has the value above 50000 Rs in a year.

  1. Wealth Tax

This is a direct tax and that is applicable on the net wealth of assesses and that is always chargeable for the net wealth which has corresponded to the valuation date. This tax is also a very famous and important Taxes in India. There the net wealth has directed the term of loans etc.

  1. Toll Tax

That tax is given for the infrastructure like road and bridges and collected that tax by the government. This is also a well-known tax of Taxes in India. That amount is very low amount but it is compulsory to pay by all who cross the bridges and roads during the particular kilometers.

  1. Swachh Bharat Cess

This is recently tax which is brought by the Indian Government and included in the list of Taxes in India. That tax is taxable for the whole services which are under the tax from the 15th November 2015 and the rate of Swachh Bharat Cess has 0.5%.

  1. Krishi Kalyan Cess

That is introduced in the budget of 2016 by the Indian finance Minister with the name of Krishi Kalyan Cess.  That is included in the list of Taxes in India and has introduced the order which is extending the welfare to former.

  1. Dividend Tax

That is also a new tax which has introduced in the 2016 budget by the finance minister and that is the 10% additional tax which has been imposed on the dividend income which is above the 10 Lac Rs since 1st April 2016.

  1. Infrastructure Cess

That is also introduced recently in the budget 2016 and that is applicable on related to the car and utility vehicle. That is on the petrol/CNG/LPG and 2.5% over the vehicle which is directed by diesel. It’s now come under the list of Taxes in India.

  1. Entry Tax

That is now applying in few states in India now as Gujarat, MP, Delhi, Assam, Uttarakhand etc. That is applicable to the order of E-commerce which is entering in state and is situated under this tax boundary.

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