Direct Tax


 
 
Concept Explanation
 

Direct Tax

Direct Tax:

  • (a) Income Tax: This is one of the most common types of tax, and most of you would be familiar with it. This tax is levied if your income exceeds the taxable limit.
  • (b) Capital Gain Tax: This tax is levied if you sell your property, bonds, shares, jewellery or anything that gives you profit. The profit can be calculated by deducting the total amount you get by selling your asset and the amount you paid for it. You have to pay tax on the profit.
  • (c)Securities Transaction Tax: When you buy or sell a stock form the share market, you have to pay Securities Transaction Tax. This tax is imposed by the Government because most of the people who earn their profits from the share market do not declare their assets.
  • (d) Corporate Tax: These taxes are paid by companies to the Government of India and it is levied on the income of the corporate.
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