Net Direct Tax Collection up by 12.5 Percent

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Net Direct Tax Collection Increased by 12.5%

Net direct tax collections for the current financial year ( 2013 – 2014 ), up to 17th September, 2013 increased ₹ 238325 crore from ₹ 211641 crore compared to 2012 – 2013, up to 17th September, 2012, showing a growth of 12.5%. This data was released on 18th September, 2013 by Department of Revenue of Finance Ministry of Government of India.

Corporation Tax : Corporate tax collections were increased to ₹ 146610 crore from ₹ 135791 crore compared to 2012 – 2013, which is a growth of 7.97%.

Income Tax : Income tax collections were increased to ₹ 89006 crore from ₹ 65752 crore compared to 2012 – 2013, which is a growth of 21.08%.

Securities Transaction Tax ( STT ) and Wealth Tax : The collection of securities transaction tax ( STT ) and wealth tax stood at ₹ 2210 crore and ₹ 309 crore.

Out of the above net collections, contribution by way of advance tax up to the September quarter was ₹ 114324 crore which is an overall growth of 9.14%. Advance tax collections from corporate were ₹ 103374 crore, which is a growth of 7.97%.

Advance tax collections under personal income tax head is ₹ 10946 crore, showing a rise of 24%. According to released data the top five advance tax payers were Oil and Natural Gas Commission ( ONGC ), State Bank of India ( SBI ), Reliance Industries Limited ( RIL ), Life Insurance Corporation ( LIC ) and HDFC Bank.

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Taxation System in India

India has a well – developed tax structure with clearly demarcated authority between Central and State Governments and local bodies.

Central Government levies taxes on income ( except tax on agricultural income, which the State Governments can levy ), customs duties, central excise and service tax.

Value Added Tax ( VAT ), stamp duty, state excise, land revenue and profession tax are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc.

In general Taxes are divided into two types. They are :

  • Direct Tax
  • Indirect Tax

Direct Tax

Direct Tax means the burden directly falls on the taxpayer. Direct tax includes following taxes :

  • Income Tax
  • Corporation Tax
  • Securities Transaction Tax ( STT )
  • Wealth Tax
  • Capital Gains Tax

Income Tax : Income tax is an annual tax imposed separately for each assessment year ( also called the tax year ). Assessment year commences from 1st April and ends on the next 31st March in India.

Corporate Sector Tax : Corporate Tax relates to the taxation of companies in India Securities Transaction Tax ( STT ) : Securities Transaction Tax or turnover tax, as is generally known, is a tax that is leviable on taxable securities transaction.

Wealth Tax : Wealth tax is a tax on the benefits derived from property ownership.

Capital Gains Tax : A capital gain is income derived from the sale of an investment. A capital investment can be a home, a farm, a ranch, a family business, work of art etc.

Indirect Tax

Indirect tax means the burden is shifted from one tax payer to other. Indirect tax includes

  • Central Sales Tax
  • Value Added Tax
  • Excise Duty
  • Customs Duty
  • Service Tax

Central Sales Tax ( CST ) : Central Sales tax is generally payable on the sale of all goods by a dealer in the course of inter – state trade or commerce or, outside a state or, in the course of import into or, export from India.

Value Added Tax ( VAT ) : VAT is a multi – stage tax on goods that is levied across various stages of production and supply with credit given for tax paid at each stage of Value addition. The state level VAT has replaced the existing State Sales Tax.

Excise Duty : Excise duty is levied on goods manufactured in India.

Customs Duty : Custom duties are levied by the Central Government of India on imported or exported goods.

Service Tax : Service tax is levied for providing services like telephone, insurance, banking etc.

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