Taxation is a term for when usually a government, a taxing authority, levies or imposes a tax. The term "taxation" applies to all types of involuntary levies, from income to capital or revenue gains to estate taxes. Though taxation can be a noun or verb, it is usually referred to as an act. The resulting revenue is usually called "taxes." Taxation, the imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the world, primarily to raise revenue or capital for government expenditures, although they serve other purposes as well.

Purposes Of Taxation

During the 19th century, the prevalent idea was that taxes should serve everyone mainly to finance the government. In earlier times, and again today, governments have utilized taxation for other than merely fiscal purposes as responsibility.

The tax structure in India is divided into direct and indirect taxes:

While direct taxes are levied on taxable income earned by corporate and individuals entities, the burden to deposit taxes is on the assessees themselves. On the other hand, indirect taxes are levied on the provision and sale of goods and services respectively and the burden to collect and deposit taxes is on the sellers instead of the asseses directly. Taxes in India are levied by the Central Government and the State Governments police. Some minor taxes are also levied by the local authorities such as Local Governments and the Municipality.

Major Central Taxes

Income Tax.

Central Goods & Services Tax (CGST).

Customs Duty.

Integrated Goods & Services Tax (IGST).

Major State Taxes