What Is Direct Tax ?
Direct Tax is a type of tax that is paid directly by the organisation or an individual to the entity that has imposed the payment. In India, the direct tax must be paid directly to the government and cannot be paid to anyone else.
What are the different types of Direct Taxes?
Here are some of the important types of direct taxes that are imposed in India :
As the name suggests, income tax is paid depending on an individual’s age and earnings. There are various tax slabs fixed by the Government of India to determine the amount of Income Tax. An income tax payer must file Income Tax Returns (ITR) on a yearly basis. Individuals may have to pay a tax or might receive a refund depending on their ITR. Non-filing of income tax can cause huge penalties. That’s why you should count on an expert income tax consultant to sort out any problem if you face one with.
All the domestic companies (apart from shareholders) need to pay corporate tax. Any foreign company that makes profit (income) in India also fall under the category of corporate tax.
Wealth tax is paid on a yearly basis. The amount depends on the ownership of properties and the market value of the property. In case an individual owns a property, wealth tax must be paid whether the property generates an income or not.
Also known by Inheritance Tax, it is paid based on the value of the estate or the money that an individual has left after his/her death.
This form of direct tax is paid due to the income that is earned from the sale of investments or assets. Based on its holding period, capital gain tax can be classified into long-term and short-term.
How MPC Helps You
In case you are entangled in any issue regarding any of the Direct taxes, our experienced tax consultant can help you in various ways including :
- Preparation of Tax & TDS Returns
- Filing of Appeals & representation before Appellate Authorities
- Tax compliance and representation before tax authorities
- Tax Advisory Services for Joint Ventures, foreign collaborations, Mergers & Amalgamations
- Tax planning for new, existing and reorganised business
- Advice regarding tax withholding compliances under the Indian tax laws to Companies and providing assistance in implementing the same
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