However, apart from this standard income tax, you are also required to pay taxes on your income in other different ways.
Here is a list of 3 various kinds of income taxes-
1. Wealth Tax
If you want to know about the different types of income tax, start with the wealth tax. It is a type of direct tax which you are required to pay if you own any kind of property, irrespective of whether your property is earning any sort of income.Wealth tax is levied on individuals, companies, HUFs (Hindu Undivided Families) and the tax liability is as per the residential status.
2. Corporate Tax
As per the IT Act of 1961, national as well as international corporate organisations are also required to pay corporate tax. This tax is levied on domestic companies that exist as separate entities from the shareholders. Even the foreign companies which earn or are deemed to earn income in India are required to pay corporate tax.The corporate tax also includes other income tax types such as FBT (Fringe Benefits Tax), MAT (Minimum Alternative Tax), STT (Securities Transaction Tax), and more.
3. Capital Gains Tax
Another type of income tax in India is capital gains tax. It is a tax which is imposed on any income that is derived from the sale of assets or investments. This includes property, cars, machinery, businesses, art, bonds, and shares. It applies to individual taxpayers as well as businesses. Depending on how long you held the investment or asset, you will be required to either pay short-term capital gains (STCG) tax or long-term capital gains (LTCG) tax.
Nations Are Made When Taxes Are Paid
The income tax or direct tax that the government collects is used for national development. Thus, it is essential for every taxpayer to pay the applicable taxes every year. Understand the different types of ITR and income taxes in detail to avoid any confusion and ensure that your taxes are correctly paid on time. Non-payment could result in severe penalties and prosecution.
* Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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