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Income Tax. Income tax is the most common direct tax in India. The tax rate that you pay depends on your income. People in the lowest income bracket don’t have to pay any taxes. The tax rate increases with income. In India, Taxes are levied on income and wealth. The most important direct tax from the point of view of revenue is personal income tax and corporation tax.

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The new measure is aimed at those who stay in no-tax or low-tax countries in order to avoid paying taxes in India. The threshold has also been reduced for being deemed an Indian resident. Whereas earlier it was 180 days, now it is 120 days for persons of Indian origin or Indian citizens. This will tighten the provisions for residency. In India, the Central Government is empowered to levy and collect taxes. Based on the income of the person, the tax is being charged. Withholding tax is also known as Retention tax.

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The tax structure in India is divided into direct and indirect taxes. While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to … Direct Taxes. These are taxes directly levied on an individual or corporation.

We have been checked by the State Department and are listed on the list of approved Tax Preparers by the US Consulate in Mumbai. A resident company is taxed on its worldwide income.
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1. Income Tax. Income tax is the most common direct tax in India.

Indirect taxes shared 63% in 1950 – 51 where it increased to 77% in 2001-02. If shows that because of the undeveloped character of the economy and glaring inequality in in­come, the scope of direct taxes is limited. Taxes are an essential part of the country’s Economic Growth. The taxes that we pay is utilised to improve various sectors of the country.
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