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Every tax that an individual or organization pays directly to the imposing authorities is called as Direct Tax. For exemplar, if a taxpayer pays to the government without any middle channel for various purposes like personal or real property tax, income tax or tax on assets.
Types of Direct Taxes in India
There are several kinds of Direct taxes which gets imposed on the taxpayer in different ways. Primarily the key direct taxes are:
- Income tax: A tax based on a person’s income wherein a preset percentage will be imposed on an entities’ income.
- Transfer Taxes: Transfer tax or estate tax is a tax which levies on the taxable section of the property of a deceased individual. Also gift tax is another form of it which implies a certain amount on an individual who are transferring properties to another individual.
- Property Tax: It is the tax levies on properties such as building or lands which are usable for maintaining public services like police or fire departments, hospital, etc.
- Capital Gains Tax: The tax that applies on a person when he sell assets such as stocks, business or real estate is called as capital gains tax.
