Understanding the Types of Taxes in India
India's tax system is bifurcated into direct and indirect taxes. Direct taxes are levied directly on individuals and organizations, with Income Tax being the most prominent example, collected based on one's earnings. Indirect taxes are imposed on goods and services, passed on to consumers. The Goods and Services Tax (GST) is a unified indirect tax replacing various earlier taxes like VAT and service tax. Other taxes include Wealth Tax, Corporate Tax, and Property Tax, each serving specific purposes and contributing to the nation’s revenue.
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