These types of taxes are directly paid to the government of India. Government levies a direct charge on the entity or an individual and cannot be handover to anyone else. The direct taxes include several taxes such as income tax, TDS etc.
Types of Direct Taxes in India :-
There are several types of direct taxes available in Indian Constitution Bill.
A. Income Tax:
This tax is well known in India. This tax is paid by the taxpayer whose income exceeds by the taxable limit. The taxpayers have to pay tax on applicable rates. As per income tax rate for F.Y 2017-18, you do not have to pay income tax if your income is up to INR 2,50,000. But if your earning exceeds 2.5 lakhs then you have to pay 5% tax as income tax up to INR 5 lakhs of Income. Rebate of 2500/- is available for total income up to 3.5 lacs.
B. Capital Gains Tax:
Its name implies that the tax is collected on the sale of capital assets for instance, sale property, shares, earn profit bonds and valuable material etc. The rate of this tax applied varies based on investment class.
C. Wealth Tax:
Wealth tax is a direct tax which is paid to Government. Wealth tax rate is 1% on net wealth exceeding Rs. 30 lakhs. The tax now stands from 2015.
D. Securities Transaction Tax:
In India, many people do not declare their profit and pay the capital gain tax. Then, the government was confused as the government can only impose the tax on profits which have been declared by people. Therefore a new tax emerged by the government that is known as Securities Transaction Tax which is applicable on every transaction was done at the stock exchange.
E. Fringe Benefit Tax:
Tax paid on fringe benefits provided by the company to employees.
F. Corporate Tax:
Corporate tax is filed annually on the income of corporate bodies of our country. In India, the taxation companies are divided into international and domestic companies.