10 Taxes That You Should Know About

When the average man earns money he does not really earn purchasing power worth his take home salary. It is a well known fact that everyone has to file their returns and pay income taxes. Income tax is a direct tax and hence its impact is clearly discernible. There are many taxes which pay to the government even after paying all that income tax each year.
 
Some of the taxes which an individual should know that they are paying are as follows:
 

  • An erstwhile tax as of today since the current budget did away with it, but many of us knew but never realised the importance of wealth tax which had a tax rate of 1% chargeable on net wealth as per the wealth tax act.

 

  • Capital gains or property taxes are another tax which we bear as a part of our income tax. This however, does not tax business or salary income. It is a tax on profits and gains from sale of capital assets as per the Income tax rules.

 

  • Estate or gift tax is also present which involves taxability of any money received as gift for purposes and sources other than a few exempted avenues and occasions such as marriage. It taxes both cash and non cash gift items when their value exceeds a certain threshold.

 

  • Customs duty is a tax which is already part of merchandise we buy in India but which has been made outside the country. When any item enters the country, it must pay taxes at the entry point which eventually is passed on to the buyer.

 

  • Excise Tax is also a tax which is included on all items barring a few exempted items which have been manufactured in India.

 

  • Securities Transaction tax is a levy which the consumer bears on share transactions when they sale and buy derivatives, stocks and such items at recognised exchanges for securities.

 

  • VAT or value added tax or sales tax is also a tax which is levied on manufactured items as a type of state tax and is prevalent the country over at different rates.

 

  • Stamp duty, transfer tax and registration charges are also there when we buy and sell properties and are paid for legal documentation and court fees.

 

  • Municipal Taxes are also paid by us for properties owned y us to the city for the maintenance of the city wide infrastructure.

 

  • Entertainment tax is also there when we go to a movie hall, DTH services for watching television as well as exhibitions and commercial shows.


Thus, the net purchasing power is taking an indiscernible dip and we do not even feel it.

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