India is basically a multilingual country with myriad tributaries of languages, religions and ethnicities being available in this country. However there is unity in diversities. Let me tell you frankly, that India has powerful tax regulating machinery which is very active to collect taxes from the people and other commercial organizations. Frankly speaking, the tax system in India is three tiered. Central Government, State Government and the local governing bodies like municipalities have formed the trio.
As per the law of the Indian constitution, every citizen should be duty bound to pay Indian taxes to the government failing which he or she is liable to the penalty charges and in some cases the long term imprisonment can take place for the nonpayment of dues or outstanding balance.
On the other hand, only through the legal machinery of the government, the tax will be collected. If you are tax payee and an authorized citizen in India, you must have the basic knowledge regarding the tax regulators of this state. He should know which department is responsible to collect the taxes. He must be aware of the tax related laws that you will have to abide by to do trading or enjoying other utility services.
Know Different Tax Collecting Agencies
- Mainly, CBDT or Central Board of Direct Taxes is accountable to collect the taxes from the people and different non governmental sectors. You will have to know that Central Government imposes taxes on central excise, custom duties and service tax. On the other hand the State Government enjoys the right to put the taxes on certain areas like VAT, State Excise, land revenue, stamp duty etc.
- Lastly it is up to the local government to impose the taxes on the house property, Octroi and it also collects taxes on the sewerage, drinkable water supplying process and other utility services.
When you proceed for the payment of the taxes for enjoying the rights and various types of services which are essential for the development and growth of body and mind, you should collect the necessary data how to pay taxes and to whom you are legally bound in this case.
Frankly speaking, just check the previous performance track record and try to make a comparison study, you will surely know that the there has been a massive change in the pattern of the Indian taxation system. For the last few decades, the higher authority has been doing modification and changes with the main purpose of bringing the flexibility and dynamism to the taxation system in the country.
- The more simple process in collecting the taxes the more advantageous will be to the NRI tax payees to enhance businesses in this good and sound financial condition. Taxation mechanism needs to be simplified and well organized as per the opinions and views of the financial advisors. On the other hand, in the case of Corporate Income taxes, the scenario is little bit different in comparison to the direct tax levies.
- As per the Income Tax Act, the commercial sectors and different financial institutions in the country are under the legal compulsion to pay taxes on the total income which they earn from the total volume of the international dealing or transaction.
- At the same time, if you are NRI, you must be compelled to pay the dues to the Income Tax department for doing business in India. You will have to prepare the Income Tax papers on the contracts and transactions which are based in India.
Simultaneously, there are different tax rates with 35% is charged on the domestic or residential property, 40% plus 2.5% as surcharge being levied on the international corporate sectors plus surcharge. In this connection, you should check the personal income tax system.