When you go through your year end salary statement I am sure most of you frown over the last part of the deduction that is your taxes. While most of us have our reserved opinion about the end use of the money all of us want to still save some of the taxes. But is that the only tax you pay? I am not.
Then why are different taxes been collected differently? Ultimately if the purpose is to enhance our country then why why why? Let the answer be whatever it is. But its time to understand the different type of taxes everyone pays in the Republic of India.
Be with me!
Basically there are two broad categories- Direct taxes and Indirect taxes
Direct taxes are the ones which are collected directly from you. They are directly paid by you to the exchequer. Like your Income tax. It is deducted at source for certain types of income and the rest you pay at the time of filing your return.
Indirect taxes – I explain these as those taxes which are collected from you without you realizing how much of these you are paying. These are taxes which are directly not paid by you to the government kitty but are reached out there via sellers, retailers, wholesalers, manufacturers or service providers. Almost every item used by you is taxable under indirect taxes and you lose count of what you pay. The tax primarily in this category is GST.
Stay tuned for more updates on my tax series where I will be explaining to you your taxes in your way.
Read : PPF: Why and How?