The document discusses various concepts related to taxation in India. It defines key terms like previous year, assessment year, co-operative society, circular, notification, amendment, and official gazette. It also provides data on direct and indirect tax collections from 2009-2010 to 2015-2016. Finally, it explains the nature of different taxes like income tax, wealth tax, service tax, excise duty, customs duty and sales tax (VAT) and who bears the burden of direct and indirect taxes.

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2. I. Previous Year: - As per the income tax act 1961, previous year means
the financial year immediately preceding the assessment year.
II. Assessment Year: - Assessment year is basically a 12 months period
starting from April 1, during which an assesse is required to file the
return of income (ITR) and the ITO has to initiate assessment
proceedings for income as per ITR and tax thereon. Since Income Tax
is on income of a financial/ previous year or period, so tax filings and
assessment can start thereafter. Probably, that’s why it’s called
assessment year/ period.
III. Co-operative Society: - A co-operative is an autonomous association of
people united voluntarily to meet their common economic, social, and
cultural needs and aspirations through a jointly owned and
democratically controlled business.
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3. V Circular: - It is internal memorandum or note of the ministry/department
which may clarify certain aspect of law. It may be superseded by yet another
circular or amendment.
VI Notification: - It is a public notification in official gazette. In various
enactments we see phrases such as “as may be prescribed”. These are later
notified through notification. Notifications are integral part of enactment.
VII Amendment: - Change in legal document made by adding, altering, or
omitting a certain part or term. Amended documents when properly executed
retain the legal validity of original documents.
VIII Official Gazette: - It is a public journal and it prints official notices from
the government. It is strictly in accordance with the government policies and
decisions. It is published weekly by department of publication , ministry of
urban development.
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Financial
Year
Corporate
Tax
Income Tax Other Direct
Tax
Total
2009-10 2,44,725 13,2833 505 37,8063
2010-11 29,8688 14,6258 1049 44,5995
2011-12 3,22816 170,181 990 49,3987
2012-13 3,56326 2,01840 823 55,8989
2013-14 3,94678 2,42888 1030 63,8596
2014-15 4,28925 26,5772 1095 695,792
2015-16 45,4419 2,86801 1075 74,2295
Figures(In Crores)

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 The greatest amount of detail in these documents is on direct tax
collection – a combination of personal and corporate income collection
– which doesn’t paint a very strong picture.
 For instance, while direct tax collection nearly doubled from 3.7 lakh
crore rupees in 2009-10 to 7.4 lakh crore rupees in 2015-16, its share
as a percentage of total taxes has dropped by 10 percentage points
over the same time frame.

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Nature Of Tax Financial Year
2016 2015
Excise Duty 28,252 16,546
Service Tax 18,647 14,585
Custom Duty 17,495 14,286
Total 64,394 45,417
Figures(In Crores)

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 Indirect tax collections for the month of April 2016 was Rs 64,394
crore registering a growth of 41.8 per cent as compared to Rs
45,417 crore collected during the same period previous year.
 Excise collections soared 70.7 per cent to Rs 28,252 crore in April
as compared to Rs 16,546 crore a year ago.
 Overall growth in revenue collections on account of indirect taxes
excluding additional revenue measures is 17 per cent.
 Arun Jaitley has pegged indirect tax collections at Rs 7.78 lakh
crore in 2016-17, up 9.7 per cent from Rs 7,09,022 crore actual
collections of the previous fiscal.
 Service tax collections in April rose 28 per cent to Rs 18,647 crore
as compared to Rs 14,585 crore in the year ago period.
 Customs or import duty collections were Rs 17,495 crore, 22.5 per
cent higher than Rs 14,286 crore collected in April 2015.

8.  “Taxes are dues that we pay for the privileges of
membership in an organized society.”
 Tax is a compulsory payment made to the government for
services it provides us, though people may not be
completely satisfied or convinced with these services.
eg. Income tax is an instrument used by the government to
achieve its social and economic objectives.
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10. 10
Types of
Taxes
Income
Based Tax
Income Tax
Wealth Tax
Expense
Based Tax
Service Tax
Value Added
Tax (VAT)

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Types of
Taxes
Tax on
Purchases
Service
Tax
Sales Tax
Customs
Duty
Tax on
Wealth
Wealth
Tax
Inheritance
Tax
Tax on
Property
Real
Estate
Personal
Tax on
Income
Income Tax

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• A Tax which is charged from the income
earned by Assesse.
Income Tax
• Tax Levied on Professionals.
Professional Tax
• Tax on Wealth of a person.
Wealth Tax

13.  Annual charge levied on both earned income (wages, salaries,
commission) and unearned income(dividends, interest, rents).
 In addition to financing a government's operations, progressive income
taxation is designed to distribute wealth more evenly in a population, and
to serve as automatic fiscal stabilizer to cushion the effects of economic
cycles.
 Its two basic types are: -
1. Personal income tax, levied on incomes of individuals, households,
partnerships, and sole-proprietorships; and
2. Corporation income tax, levied on profits (net earnings) of
incorporated firms. However, presence of tax loopholes (whose number
increases in direct proportion to the complexity of tax code) may allow
some wealthy persons to escape higher taxes without violating
the letter of the tax laws.
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14.  Professional Tax :- Professional tax is the tax by
the state governments in India. Anyone earning an income
from salary or anyone practicing a profession such as
chartered accountant, company secretary, lawyer, doctor etc.
are required to pay this professional tax. Different states have
different rates and methods of collection.
 Wealth Tax :- A wealth tax (also called a capital tax,
equity tax, or net worth tax) is a levy on the total value of
personal assets, including owner-occupied housing; cash,
bank deposits, money funds, and savings in insurance and
pension plans; investment in real estate and unincorporated
businesses; and corporate stock, financial securities, and
personal trusts. Typically liabilities (primarily mortgages and
other loans) are deducted, hence it is sometimes called a net
wealth tax.
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(a) Individual/HUF/AOP/BOI and every artificial judicial person
Level of Total Income Rate Of Income Tax
Where the total income does not
exceed Rs 2,50000
NIL
Where the total income does exceed
Rs 2,50000 but does not exceed Rs
5,000,00.
10% of the amount by which the total
income exceeds Rs 2,50000.
Where the total income does exceed
Rs 5,000,00. but does not exceed Rs
10,000,00.
Rs 25000 plus 20% of the amount by
which the total income exceeds Rs
5,000,00.
Where the total income does exceed
Rs 10,000,00.
Rs 1,25000 plus 30% of the amount by
which the total income exceeds Rs
10,000,00.

17. (b) Resident Individual of age of 60 years or more but less than 80 Years at
any time during the financial year
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Level of Total Income Rate Of Income Tax
Where the total income does not exceed
Rs 30,0000
NIL
Where the total income does exceed Rs
30,0000 but does not exceed Rs 5,000,00.
10% of the amount by which the total
income exceeds Rs 30,0000.
Where the total income does exceed Rs
5,000,00. but does not exceed Rs
10,000,00.
Rs 20000 plus 20% of the amount by
which the total income exceeds Rs
5,000,00.
Where the total income does exceed Rs
10,000,00.
Rs 1,20000 plus 30% of the amount by
which the total income exceeds Rs
10,000,00.

18. (c) For Resident Individual of age of 80 years or more at any time during the
financial year
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Level of Total Income Rate Of Income Tax
Where the total income does not
exceed Rs 50,0000
NIL
Where the total income does exceed
Rs 50,0000 but does not exceed Rs
10,000,00.
20% of the amount by which the total
income exceeds Rs 50,0000.
Where the total income exceeds Rs
10,000,00.
Rs 1,00000 plus 30% of the amount by
which the total income exceeds Rs
10,000,00.

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20.  Service Tax :- Service tax refers to tax collected by
the government of India from certain service providers
for providing certain services. The person who
pays service tax can be either a service provider or
a service receiver or any other person who is
responsible for providing certain services.
 Excise Duty :- An excise or excise tax (sometimes
called a special excise duty) is an inland tax on the sale,
or production for sale, of specific goods or a tax on a
good produced for sale, or sold, within a country or
licenses for specific activities.
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21.  Custom Duty :- A Custom duty is a tax collected on
imports and some exports by the customs authorities of
a country. This tax is used to raise state revenue. It is
based on the value of goods called ad valorem duty or
the weight, dimensions, or other criteria of the item such
as its size.
 Sales Tax (VAT) :- A sales tax is a
consumption tax imposed by the government on
the sale of goods and services. A conventional sales
tax is levied at the point of sale, collected by the retailer
and passed on to the government.
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22.  Direct Taxes Income Earner.
 Indirect Taxes Ultimate Consumer.
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