TAX STRUCTURE IN INDIA

TAX STRUCTURE IN INDIA

In todays India three tier federal structure. The central government, state governments, and local municipal bodies make up this structure. Article 256 of the constitution states that “No tax shall be levied or collected except by the authority of law”. Hence, each and every tax that is collected needs to backed by an accompanying law.

Taxes in India are levied by the Central Government and the State Governments. Some minor taxes are also levied by the local authorities such as the Municipality and the Local Governments.

While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assessees themselves. On the other hand, indirect taxes are levied on the sale and provision of goods and services respectively and the burden to collect and deposit taxes is on the sellers instead of the assessees directly.

A. TAX COLLECTION BODY IN INDIA

CENTRAL GOVT.

STATE GOVT.

LOCAL BODIES:

property tax, water tax, other taxes on drainage and small services.

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