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Direct Tax: The country’s general budget – 2023 is going to come among us soon, while on February 1, 2023, it is to be presented in the Parliament by Finance Minister Nirmala Sitharaman. We do not easily understand many terms related to the budget, in which case our mind starts to wander. By the way, one such term related to the budget is direct tax ie direct tax, today we are going to give you important information about it.
What is Direct Tax?
Direct Tax or Direct Tax is levied on the earnings made by individuals and organizations, as its name is Direct Tax i.e. this tax is paid directly to the government. On the other hand, no person or institution can transfer the liability under Direct Tax. A major part of the government’s income comes through this tax.
There are so many types of Direct Tax
As an example of Direct Tax, we can take Income Tax, Property Tax, Corporate Tax. There are mainly two types of Direct Taxes, in which Income Tax and Corporate Tax are the main ones. On the other hand, define income tax, then the tax that is imposed on the earned income of individuals and institutions is called income tax. In income tax, tax is charged according to the slab, where the higher the income, the higher the tax is charged. Along with this, the tax on the profits of companies is called corporate tax. At the same time, corporate tax for companies depends on whether it is domestic or foreign. Surcharge and Cess are charged under Corporate Tax.
Why is Direct Tax imposed?
Explain that direct tax is used to provide funds for government expenditure. The country’s economy gets strengthened only through direct tax. The government uses the tax-collected funds to increase the country’s infrastructure, health services, and establish institutions in the education sector.
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