Indian Tax System
Taxation is the major instrument in the hand of the modern Governments to raise finance to meet expenditure done on various public services. It is a compulsory obligation on the people and the payment of which is the legal duty of the citizens. It may be on their property, income and even it may be required to pay at the time of manufacturing and selling or purchasing a commodity. Tax constitute the major source of the government’s income
Meaning of Tax
The tax is compulsory payment to the Government by taxpayer without any expectation of some specified return. While paying tax, the tax-payer is not entitled to force the government to give something in return of the sum he has paid as tax.
Characteristics of a Tax
A compulsory payment: - Tax is not an optional payment by a citizen but a payment having legal enforcement behind it. Tax is levied by the government which is not subject to denial.
Taxes are paid by the Person and organization: - Taxes are paid by the person though they may be imposed on income or goods.
Payment for the common welfare: - Tax is not a payment for the tax-payer but for all. Everyone receive the benefits provided by the government through expenditure.
Tax adversely affects the monetary condition of tax payer: - A tax being an additional payment reduces the wealth and purchasing power of the tax payer.
Various types of taxes: - The term includes not a single type of imposition by the Government. In modern time so many types are levied on different activities of public. Income tax, Wealth tax, Excise duty, Customs, Expenditure tax, Sales tax, Service tax, Property tax, Entertainment tax, Land revenue are examples of some important taxes levied by different governments.
Aims of Taxation
Raising Public Revenue: - The first and foremost aim of taxes is to raise Public Revenue to meet the ever-increasing public expenditure.
Reduction in the Inequality of Wealth: - One of the aims of the taxation comes to be
Meaning of Tax
The tax is compulsory payment to the Government by taxpayer without any expectation of some specified return. While paying tax, the tax-payer is not entitled to force the government to give something in return of the sum he has paid as tax.
Characteristics of a Tax
A compulsory payment: - Tax is not an optional payment by a citizen but a payment having legal enforcement behind it. Tax is levied by the government which is not subject to denial.
Taxes are paid by the Person and organization: - Taxes are paid by the person though they may be imposed on income or goods.
Payment for the common welfare: - Tax is not a payment for the tax-payer but for all. Everyone receive the benefits provided by the government through expenditure.
Tax adversely affects the monetary condition of tax payer: - A tax being an additional payment reduces the wealth and purchasing power of the tax payer.
Various types of taxes: - The term includes not a single type of imposition by the Government. In modern time so many types are levied on different activities of public. Income tax, Wealth tax, Excise duty, Customs, Expenditure tax, Sales tax, Service tax, Property tax, Entertainment tax, Land revenue are examples of some important taxes levied by different governments.
Aims of Taxation
Raising Public Revenue: - The first and foremost aim of taxes is to raise Public Revenue to meet the ever-increasing public expenditure.
Reduction in the Inequality of Wealth: - One of the aims of the taxation comes to be