Tax Structure


 
 
Concept Explanation
 

Tax Structure

Tax Structure: Taxes in India are levied by the Central Government, State Government and the local governing bodies like the municipality and the local council. In a developing country like India, the Government has to make fiscal policies to promote the economic growth and development of the country. In order to materialise these policies, the government needs capital and for this, taxes are levied on individuals and businesses. So, it is very important that every citizen pays tax to the Government. Taxes imposed on citizens of India can be broadly classified into two categories:

  • Direct Taxes
  • Indirect Taxes
  • These two broad categories are governed by two central bodies under the Ministry of Finance:

  • Central Board of Direct Taxes (CBDT)
  • Central Board of Excise and Customs (CBEC)
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