To our list of hated words, we do not hesitate to add one more and this is nothing but the word TAX. Though, if you hate this word, it does not solve your problem. Because, whether you are working in a firm of repute, in a government job, or you are running a business; you cannot escape TAX. So, it is better to understand tax rather than avoid it. You can also book an appointment for a tax consultation at CA Chandan Agarwal & Co. to widen your tax-related knowledge. Until and unless you secure an appointment with a tax consultant near you, take this blog as a handy guide.
Indian Tax and its Variations
The Indian tax system is a complicated one; though it can be deciphered. In India, tax is divided into types – Direct Tax and Indirect Tax. Let us open with these types a bit further.
Direct Tax: Direct tax charged on working individuals (conditions applied) and/or businesses or other non-governmental entities by the government of India directly. The tax is decided by counting on their income, profits, and their moving and non-moving assets. Income tax is one of the best examples of direct tax in India.
Indirect Tax: Indirect tax is collected indirectly. Even, a few of us can understand when we pay for the goods we buy along with tax. It is also collected via services tax. GST or goods and services tax is the best example of indirect tax in India.
It is not actually a gloomy process to understand the term ‘TAX’. Above mentioned definitions are easy to understand and even a layman can understand it.
Conclusion,
Both, direct and indirect taxes have their respective benefits and adversity on our financial status and the entire economy in India. To know about these taxes in detail, you better ask for expert help. Tax experts in Kolkata are available at CA Chandan Agarwal & Co. You can contact them if you require.