What is Taxation?
Historical Background
Key Points
8 points- 1.
Taxes can be direct taxes (e.g., income tax, corporate tax) or indirect taxes (e.g., GST, customs duty).
- 2.
GST is a comprehensive indirect tax levied on the supply of goods and services.
- 3.
The Income Tax Act 1961 governs the taxation of income in India.
- 4.
The government uses taxation to raise revenue, influence economic activity, and redistribute income.
- 5.
Tax rates and exemptions are determined by the government through the annual Union Budget.
- 6.
Tax evasion and avoidance are major challenges for the government.
- 7.
The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) are responsible for administering direct and indirect taxes, respectively.
- 8.
Tax reforms aim to simplify the tax system, broaden the tax base, and improve compliance.
Visual Insights
Simplified GST Registration Process
Outlines the simplified Goods and Services Tax (GST) registration process for businesses in India.
- 1.Apply online through GST portal
- 2.Verification of documents
- 3.GSTIN allotment
- 4.Complete KYC verification
- 5.Registration certificate issued
Recent Developments
5 developmentsOngoing efforts to simplify the GST system and address issues related to compliance.
Government is focusing on tax reforms to promote economic growth and investment.
Increased use of technology for tax administration and compliance.
Recent changes in corporate tax rates to attract investment.
Efforts to combat tax evasion and money laundering.