Understanding Taxes in India: Direct vs. Indirect Taxes
The Government of India relies heavily on taxes collected from various aspects of our daily lives. Taxes impact everything from our earnings to the fuel we buy, the cell phones we use, the roads we drive on, and even the simplest items like a can of cold drink from the grocery store. Direct and Indirect Taxes Understanding the different types of taxes in India is crucial. The tax system is primarily divided into direct taxes and indirect taxes. By exploring these categories, we can better understand our fiscal responsibilities. Direct Taxes Direct taxes are those that individuals and entities pay directly to the government. The responsibility for these taxes lies with the taxpayer, and no intermediary is involved. Who Collects Direct Taxes? The Central Board of Direct Taxes (CBDT), under the Department of Revenue, oversees the collection and administration of direct taxes in India. This body ensures the proper implementation of tax laws and provides advice on tax policy. Types of Dire...