In many countries, this is the time for accounting and filing your tax return and you might be interested on how the taxation system works in India.

Let me show you some of the details of various taxes and taxation system as whole.

The taxation system in India is very well structured. It started in the year of 1860. The taxation system has always reformed over time. Every individual or firm has to file his or its tax return by the end of 31st March.The Department of Revenues (कर विभाग) under the Ministry of Finance (वित्य मंत्रालय – Vitya Mantraley) is responsible for making policies and slabs for various taxes. There are various taxes that are levied by the central government and other by state governments. The taxes could be direct taxes or indirect taxes.

The taxes are levied by the central government (केंद्र सरकार – Kendra Sarkar) of India are:

Direct Taxes

Banking Cash Transaction Tax (बैंक नकद लेन-देन कर)
Capital Gains Tax (पूंजी लाभ कर)
Corporate Income Tax (निगम आयकर)
Fringe Benefit Tax (फ्रिंज बेनिफिट कर)
Personal Income Tax (व्यक्तिगत आयकर)
Securities Transaction Tax (प्रतिभूति लेनदेन कर)

Indirect Taxes

Customs Duty (सीमा – शुल्क)
Excise Duty (उत्पाद शुल्क)
Service Tax (सेवा कर)

The taxes levied by the state governments (राज्य सरकार – Rajya Sarkar) are:

Dividend Tax (लाभांश कर)
Endowment Tax (दान कर)
Estate Tax (संपदा कर)
Gift Tax (उपहार कर)
Flat Rate Tax or Flat Tax (सपाट दर कर या सपाट कर)
Fuel Tax (ईंधन कर)
Inheritance Tax (उत्तराधिकार कर)
Transfer Tax (स्थानांतरण कर)
Payroll Tax (वेतन कर)
Poll Tax or Capitation tax (व्यक्ति कर)
S. E. T. or Self Employment Tax (एस ई. टी. या स्व-रोजगार कर)
Social Security Tax (सामाजिक सुरक्षा कर)
Usage Tax (उपयोग कर)
Value Added Tax or Sales Tax (वैट या बिक्री कर)
Wealth Tax (धन कर)

There are some details which must be observed which includes that the filing of tax return even if the individual doesn’t fall in any tax paying packet.