4. Corporate Income Tax
Tax Indian
(Turnover <400Cr)
Foreign
Basic 25% of EBIT 40% EBIT
Education Cess 4% CIT 3% CIT
Effective Tax rate 26%
Surcharge if Profit > Rs 1 Cr 10% of CIT 2% of CIT
Surcharge if Profit > Rs 10 Cr 14% of CIT 5% of CIT
For other domestic Companies 30% of EBIT 40% EBIT
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5. Capital Gains Tax
It is tax on gain in capital. The capital gain is the
difference between the money received from selling
the asset and the price paid for it.
If you sell property, shares, bonds & precious material
etc. and earn profit on it within predefined time frame
you are supposed to pay capital gain tax.
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6. Capital Gains Tax
Short Term Capital Gains : Up to 1Year
Securities, Mutual fund and others when STT is applied : 15%
Securities (STT is not applied) : Part of personal income tax
Long Term Capital Gains : Above 1 year
Equity and equity fund units : 10% if gain is above Rs 1 lakh
All assets except above : 20%
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7. Securities Transaction Tax
A lot of people do not declare their profit and avoid paying capital gain tax,
as government can only tax those profits, which have been declared by
people.
To fight with this situation Government has introduced STT (Securities
Transaction Tax ) which is applicable on every transaction done at stock
exchange.
if you buy / sell equity shares, derivative instruments, equity oriented mutual
funds this tax is applicable.
This tax is added to the price of security during the transaction itself, hence
you cannot avoid (save) it. As this tax amount is very low people do not
notice it much.
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9. With Holding Tax
Taxes imposed in advance or before payment of
1) Salaries
2) Dividends
3) Interest
It is also known as
Retention tax
Tax Deducted at source (TDS)
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10. With Holding Tax
# Type of source %
1 Interest on Invested Income 20% of Gross
Income
2 Dividends 10%
3 Royalties 25%
4 Other Services of Individuals 30% of net
5 Companies / Corporations 40%
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11. Types of GST
Intra State / UT
Central GST (CGST) : Collected by Central Govt
State GST (SGST) / Union Territory GST (UGST) :
Collected by State / UT Govt.
Inter-State
Inter-State GST (IGST) : Collected by Central Govt
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12. Goods and Services Tax (GST)
It is an indirect tax used in India on the supply
of goods and services.
It is a comprehensive, multistage, destination-
based tax
it has subsumed almost all the indirect taxes
except a few state taxes
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13. Dr Raju Indukoori
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GST Rates
Item wise rates can be seen on https://cbic-gst.gov.in/gst-goods-services-rates.html
14. Tobin Tax
A Tobin tax, suggested by Nobel Memorial Prize in
Economic Sciences Laureate economist James Tobin in
1971 Jane way Lectures at Princeton,
It is a tax on all spot conversions of one currency into
another.
The tax is intended to put a penalty on short-term
financial round-trip excursions into another currency.
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