What is Direct Tax – Direct taxes are one sort of taxes an individual pays that are given straight or on to the government, like tax, land tax, and personal land tax, a poll tax, Income Tax. Such direct taxes are computed based on the strength of the taxpayer to pay, which means that the higher their ability of paying is, the higher their taxes are. Direct taxes are transferable to another person or business. The organizations and individuals on whom the direct taxes are concerned are only responsible for paying the taxes. Failure to pay taxes on time may result in penalties and imprisonment.

What is Direct Tax | Different Rates of Direct taxes

The direct tax system, based on the support system, may turn out to be confusing as it imposes higher taxes on those working hard to earn a higher income. A direct tax is the reverse of an indirect tax, where the tax is levied on one person, such as a dealer, and paid by another—such as a sales tax paid by the buyer in a Retail. Both kinds of taxes are major revenue sources for governments. 

 

Different Type of Direct Tax

Income Tax – It is based on one person’s income. A specified percentage is taken from an Employee’s salary, depending on how much they earn. Various tax slabs are defined by the Government of India which defines the amount of Income Tax that must be paid.

 

Capital Gain Tax – This tax is imposed when a person sells assets such as stocks, real estate, gold, or a business. Based on its holding period, taxes are often divided into long-term and short-term. Any assets, aside from securities, that are sold within 36 months from the time they have come under short-term gains.

 

House Property tax – Any Income is generated by house property like house rent, land lease, sell any house or property is under House property tax. 

 

Wealth Tax – Wealth tax is imposed on the richer division of the society. The aim of doing so is to bring parity amongst the taxpayers. The tax must be paid per annum and depends on the ownership of properties and therefore the market price of the property. Just in case a private owns a property, wealth tax must be paid and doesn’t depend upon whether the property generates an income or not.

 

Tax Rates for the Various Types of Direct Tax

 

Tax Rate for Individuals Below 60 Years

Up to Rs. 2,50,000 – NIL

Up to Rs. 2,50,000 – 5,00,000 – 5%

Up to Rs. 5,00,000 – 10,00,000 – 20%

Above Rs. 10,00,000 – 30%

 

Tax Rate for Individuals Between 60 Years and 75 Years

Up to Rs. 3,00,000 – NIL

Up to Rs. 3,00,000 – 5,00,000 – 5%

Up to Rs. 5,00,000 – 10,00,000 – 20%

Above Rs. 10,00,000 – 30%

 

Tax Rate for Individual Super Senior Citizen

Up to 5,00,000 – NIL

Up to 5,00,000 – 10,00,000 – 20%

Up to 10,00,000 – 30%

Every Person who is under the applicable Direct tax, must pay their taxes, This tax is the major revenue of the Indian Government, So we should pay our tax on time. If you want to know more about direct tax and are worried about your direct tax submission then Taxkundali is one of the best Direct Tax advisors in Jaipur. We are the Top Chartered Accountant Company in India.