বুধবার, ২৩ মে, ২০১২

Direct taxation in India

?Taxes have been imposed since centuries as levies on income or wealth. The system of taxation has undergone myriads of changes and improvement and has become more organized. In India the Income Tax Department is responsible for collection of direct taxes. It is a Government body and works under the aegis of Finance Ministry.

The department works as per the rules and regulations laid down in the Income Tax. In ancient times various systems for tax collection prevailed in the country. Most of the systems prevailed under the ruling Rajahs.? There were many ancient treatises of financial systems and regulation of taxes as in Manusmriti and then Kautaliya?s Arthasastra. The latter is an elaborate work that covers various aspects of direct and indirect taxes.? The treatise also covers financial administration in a wider scope.? ?

The direct taxes in India are based on profit in business, professional income, property sale and profit that arises from various sources.

There is a table laid out for tax exemption or taxation limit besides percentage of tax applicable.

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There are many instruments of exemption where investment reduces the tax burden. These are classified under many sections and sub sections. The details of income accrued are to be submitted via a return form broadly classified and income tax return. The return has to be submitted in a given period. The filing date defers in case of individual, firms and corporate. The return cal also be filed online at the income tax website.

As a regulatory mechanism recently pan card has been introduced in India. The acronym PAN stands for permanent account number. This is? a ten digit alpha numerical number printed on laminated card. The pan card is unique and the number cannot be changed for life.

During the major financial transactions and opening of back account it is necessary to quote the Pan. The requirement of this number is increasing day by day, since it is becoming mandatory on many instances. The income tax website has made it easy for the applicant to down load form. The form can be duly filled and sent to the local ITO office or other recognized centers to obtain the card. Since this is a time consuming process you can check status online. This will help you know when your permanent account number will arrive.

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