Direct Taxes in India


The following are the different forms of direct taxes levied in India:

Capital Gains Tax
It's a form of direct tax that's levied on income derived from the selling of properties or investments. Capital assets include investments in farms, bonds, stocks, companies, art, and real estate. Tax may be graded as long-term or short-term depending on how long it is kept.

Corporate Tax
Apart from shareholders, domestic corporations would have to pay income tax. Foreign companies that earn money in India would have to pay corporate tax as well.

Estate Tax
It is also known as Inheritance Tax, and it is levied on the value of an individual's wealth or the money left after his or her death.

Wealth Tax
The tax is based on the ownership of assets and the market value of the land and must be changed every year.

Income Tax
Income tax must be charged based on an individual's age and earnings. The Government of India establishes various tax slabs that specify the amount of income tax that must be charged. Per year, the taxpayer must file an Income Tax Return (ITR).


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