Taxation in India

Introduction to Tax Reforms

  1. Tax reforms in India aim to create a more efficient, transparent, and equitable tax system.
  2. The focus has been on simplifying the direct and indirect tax structure, broadening the tax base, and improving compliance.
  3. Reforms have been undertaken since the 1991 economic liberalization era.

Key Reforms in Direct Taxes

  1. Implementation of the Income Tax Act, 1961, as the foundational legislation for direct taxes.
  2. Introductio

Introduction to GST

  1. Goods and Services Tax (GST) is a comprehensive indirect tax implemented in India from July 1, 2017.
  2. It replaced multiple indirect taxes like VAT, Service Tax, Excise Duty, and others.
  3. GST is governed by the GST Council, which includes representatives from the Central and State governments.

Features of GST

  1. It is a destination-based tax levied at the point of consumption.
  2. Divided into three categories: CGST (Ce

Introduction to Taxation

  1. Taxation is a primary source of revenue for the government, used to fund public services and development projects.
  2. In India, taxes are categorized into direct and indirect taxes based on their nature and method of collection.
  3. Taxation policies are framed by the Central and State Governments.

Direct Taxes

  1. Direct taxes are levied directly on the income or wealth of individuals or organizations.
  2. Examples inc