TAX STRUCTURE IN INDIA

DIRECT
TAXES

INDIAN TAX
STRUCTURE

INDIRECT
TAXES
 INCOME
FROM
SALARY

INCOME
DEDUCTIONS
FROM HOUSE
FROM GTI
PROPERTY

INDIAN
DIRECT
TAXES

INCOME
INCOME
FROM
FROM OTHER
BUSINESS &
SOURCES
PROFESSION

CAPITAL
GAINS
 INDIAN
INDIRECT TAXES

CENTRAL LEVIES STATE LEVIES

CENVAT
CUSTOMS DUTY SERVIVE TAX (CENTRAL LOCAL SALES TAX ENTRY TAX VAT
EXCISE)

ANCILLIARY
TAXES SUCH AS
CENTRAL SALES LUXURY TAX,
R & D CESS
TAX SURCHARGE,
TURNOVER TAX,
ADDITIONAL TAX
 INTRODUCTION
• The Tax Structure in India is quite strong and
follows the financial year.
• The taxation under the tax structure in India is
applicable for any kind of income pertaining to a
person working as an employee under the public
sector units, private sector units, foreign companies
in India, Departments of the State Governments of
India, and Departments of the Central Government
of India or self employed individuals engaged in
commercial activities which is legal in nature.
 INTRODUCTION (contd)
• The several corporations engaged in commercial activities
also come under the taxation.
• The public bodies, state governments and central government
have clear demarcation of their functioning.
• The central government imposes tax on all kinds of income
such as central excise, customs duties, and service tax apart
from income pertaining to agriculture.
• The State Governments of India is responsible for imposing
tax pertaining to Value Added Tax (VAT), sales tax, income
from agriculture, state excise duty, stamp duty, professional
tax, land revenue, etc.
• Taxes imposed by the local bodies are pertaining to octroi tax,
water supply utilities, drainage and sewage utilities, property
tax, etc.
 Different taxes levied under tax
structure in India
• Direct Taxes
• Personal Income Tax
• Tax on Corporate Income
• Tax Incentives
• Capital Gains Tax
• Indirect Taxes
• Securities Transaction Tax
• Service Tax
• Excise Duty
• Customs Duty
• Taxes Levied by State Governments and Local Bodies
• Other Taxes
• Sales Tax or Value Added Tax
 The different heads of income for
tax structure in India
• Salary
• House property
• Profit in business or profession
• Capital gains
• Other sources
 The different exemption schemes
under the tax structure in India
• Exemption on income spent on higher educational
purpose
• Exemption on income spent for the treatment of a
diseased person who is dependent
• Exemption on income spent as contribution to
provident fund, insurance policies, etc
• Exemption on the income spent on buying national
savings certificates and investments in other
government based savings schemes
• Exemption on the income of a disabled person
• Exemption on the income spent on the payment of
interest on loan
 The important facts under the tax
structure in India
• The laws on central government income tax collection and recovery is
governed by the Department of Tax and Revenue under Ministry of
Finance, India
• The system of taxation is completely based on the personal assessment
of income
• Penalties and interest are charged on the non payment of taxes and
failure to file returns
• The filing date is not extended and any late filing is charged with
interest
• The returns pertaining to the losses have to be filed within the due date
• All the large sized and medium sized taxpayers are subjugated to
investigative assessment
• Designated due dates are ascertained for the purpose of filing of returns
• The tax is deducted at source by the employers on behalf of the
employees and from all kinds of defrayments to non residents
 TAX RATES IN INDIA
• Tax Rates in India are variable
pertaining to the type of income
on which the tax is imposed. The
tax rate in India depend on
several factors, such as source of
the income, type of the income,
the individual, etc.
 PERSONAL TAX RATES IN INDIA
• For taxable income above Rs. 0 but less than Rs.
1,10,000, rate of tax deduction is 0%
For taxable income less than Rs. 1,45,000 in case of
women, rate of tax deduction is 0%
For taxable income less than Rs. 1,95,000 in case of
an individual who is above the age of 65 and
residing in the country, rate of tax deduction is 0%
For taxable income above Rs. 1,10,000 but less than
Rs. 1,50,000, rate of tax deduction is 10%
PERSONAL TAX RATES IN INDIA (contd)
• For taxable income above Rs. 1,50,001 but less than Rs.
2,50,000, rate of tax deduction is 20%

• For taxable income above Rs. 2,50,001 but less than Rs.
1,000,000, rate of tax deduction is 30%

• For taxable income above Rs. 1,000,001, rate of tax deduction

is 30%, and a surcharge of 10% of the entire income tax
liability added in case the income exceeds Rs. 1,000,000

• The cess on education is charged at the rate of 3% on the

income tax

• There are several rebates and exemptions on income tax in

India
Domestic Corporate tax rates in India
• For Domestic Corporations the effective tax rate is 30% and
the tax rate with surcharge is 30%

• Attention must also be given on the fact that all of the

companies formed in India are regarded as Indian domestic
companies, even in

• the case of ancillary units with mother concerns in foreign

countries

• Attention must be given on the factor that if the taxable

income is more than Rs. 1,000,000, then a surcharge of 10%
of the tax on

• income is levied
HIGHEST TAX PAYERS IN INDIA

Priety Zinta

Salman Khan

Sachin Tendulkar

Jagjit Singh

Ajay Devgan

Kareena Kapoor

Sanjay Dutt

Akshay Kumar
 HIGHEST TAX PAYERS IN INDIA
Mukesh and Anil Ambani
Lakshmi Mittal
Sunil Mittal
Pallonji Mistry
Anil Agarwal