Types of Direct Tax in India

1. Income Tax

Income tax in India is a tax on earnings, based on income levels, regulated by the Income Tax Act of 1961.

2. Corporate Tax

Corporate tax in India is a tax on the profits of companies, with rates varying by company type and income level.

3. Securities Transaction Tax

Securities Transaction Tax (STT) is a tax on securities trades on Indian exchanges, aimed at simplifying taxation and enhancing transparency.

4. Capital Gains Tax

Capital Gains Tax in India is charged on profits from selling assets. Short-term gains are taxed higher, while long-term gains enjoy lower rates or exemptions.

5. Gift Tax

In India, gifts over ₹50,000 are taxed unless from close relatives or exempt. The tax depends on the recipient’s income tax slab.

6. Wealth Tax

Wealth tax in India, abolished in 2015, was a tax on net wealth exceeding ₹30 lakh, applied to assets like real estate and jewelry.

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