Tax laws in India we must know

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Tax law in India we must know 

India has a comprehensive tax system governed by various laws and regulations. Below is a list of key tax laws in India:  


1. Direct Tax Laws

These are taxes levied directly on individuals and businesses.  


 A- Income Tax Act, 1961

- Governs taxation on income earned by individuals, Hindu Undivided Families (HUFs), firms, and companies.  

- Includes provisions for income tax slabs, deductions, exemptions, and penalties.  

- Introduced the concept of Advance Tax, Tax Deducted at Source (TDS), and Tax Collected at Source (TCS).  

B - Wealth Tax Act, 1957 (Abolished in 2015)

- Earlier imposed a tax on the net wealth of individuals and HUFs but was repealed in 2015.  

C. Gift Tax Act, 1958 (Merged with Income Tax Act) 

- Tax on gifts received above a certain threshold is now covered under the Income Tax Act, 1961.  

D .Securities Transaction Tax (STT), 2004  

- Levied on the purchase and sale of securities listed on stock exchanges in India.  

E. Equalisation Levy (Digital Tax), 2016 

- Imposed on foreign digital service providers earning revenue from Indian users (e.g., Google, Facebook).  

F. Dividend Distribution Tax (DDT) (Abolished in 2020) 

- Earlier, companies paid tax on dividends distributed to shareholders, but now it is taxable in the hands of recipients.  


2. Indirect Tax Laws

These taxes are levied on goods and services and are ultimately paid by consumers.  

A - Goods and Services Tax (GST) Act, 2017 

- Replaced multiple indirect taxes such as VAT, Service Tax, and Excise Duty.  

- Classified into CGST, SGST, and IGST based on interstate and intrastate transactions.  

B .Customs Act, 1962

- Governs the import and export of goods, including duties and penalties on smuggling.  

C .Excise Act, 1944 (Partially Replaced by GST)  

- Earlier levied on the production of goods; now, only a few items like alcohol, petroleum products, and tobacco attract excise duty.  

D. Central Sales Tax (CST) Act, 1956 (Abolished in GST Era)

- Earlier applicable to inter-state sales, now largely subsumed under GST.  

E. Foreign Trade (Development and Regulation) Act, 1992  

- Regulates India’s trade policies and restrictions, including import-export duties.  

3. Other Important Tax Laws

A. Finance Act (Annual Law) 

- Introduced every year along with the Union Budget to implement tax-related changes.  

B .Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015

- Targets undisclosed foreign income and assets, imposing heavy penalties and prosecution.  


C. Benami Transactions (Prohibition) Act, 1988 (Amended in 2016)

- Prevents individuals from holding assets in the name of others to evade taxes.  


D. Prevention of Money Laundering Act (PMLA), 2002

- Regulates transactions to prevent money laundering and tax evasion.  


E. Direct Tax Vivad Se Vishwas Act, 2020

- A dispute resolution scheme to settle pending direct tax litigation.  

F. Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020

- Provided relief during COVID-19 by extending tax filing deadlines and lowering interest rates on delayed payments.  



I hope you all Tax laws 

Wise investing 

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