By Admin88 
While direct and indirect taxes are the two main types of taxes, there are also these small cess taxes that are also seen in the country. Although, they aren’t major revenue generators and are not considered to be as such, these taxes help the government fund several initiatives that concentrate on improving the basic infrastructure and maintaining the general well being of the country. The taxes in this category are primarily referred to as a cess, which are taxes levied by the government, and the funds generated through this are used for specific purposes as per the Finance Minister’s discretions.
Below are some of the examples of other taxes that are seen most commonly in India.
Professional Tax, or employment tax, is another form of tax levied only by state governments in India. According to professional tax norms, individuals earning income or practicing a profession such as a doctor, lawyer, chartered accountant, or company secretary, etc. are required to pay this tax. However, not all states levy professional tax, and the rate differs across all the states that levy the tax.
Also known as Property Tax or Real Estate Tax, this is one of the taxes levied by local municipal bodies of every city. These taxes are levied in order to provide and maintain the for basic civic services. All owners of residential or commercial properties are subject to municipal tax.
Entertainment Tax is yet another type of tax commonly seen in India. It is levied by the government on feature films, television series, exhibitions, amusement, and recreational parloursLucknow Wealth Management. This tax is collected taking into account a business entity’s gross collection collected from earnings based on commercial shows, film festival earnings, and audience participation.
Stamp duty, registration fees, and transfer taxes are collected as a supplement of property tax. For instance, when an individual purchases a property, they also have to pay for the cost of stamps (stamp duty), registration fees (fee charged by the local registrar to legalise a property transaction), and transfer tax (tax paid to transfer the ownership of a commodity).
Education cess is a tax in India primarily introduced to help cover the cost of government-sponsored educational programs. This tax is collected independently of other taxes and is applicable to all Indian citizens, corporations, and other people living in the country. The effective rate of education cess currently stands at 2% of an individual’s income.
When an individual receives a gift from another person. It is considered to be a part of their income generated through “other sources,” and the relevant tax is levied. This tax is applicable if the gift amount is more than Rs. 50,000 in a year.
Wealth Tax was another tax levied by the government, which was charged based on the net wealth of the assessee. Wealth tax is chargeable with respect to the net wealth of a property. Net wealth is equal to all the assets an individual owns minus the cost of acquiring them (any loan taken to acquire them). Wealth tax is no longer operational as it was abolished during the Union Budget of 2015.Jaipur Investment
The wealth tax, governed by the Wealth Tax Act, allows the government to impose a tax on the net wealth of a person, an HUF, or a company. This tax is set to be abolished in 2016, but until then the tax levied on the net wealth is about 1% of the wealth that exceeds Rs. 30 lakhs. There are exceptions to this tax, which are organisations that don’t have to pay wealth tax. These organisations could be trusts, partnership firms, social clubs, political parties, etc.
A toll tax is a tax you often pay to use any form of infrastructure developed by the government, for example, roads and bridges. The tax amount levied is rather negligible and is used for maintenance and basic upkeep of a particular project.
This is a cess imposed by the government of India and was started on November 15, 2015. This tax is applicable to all taxable services, and the cess currently stands at 0.5%. Swachh Bharat cess is levied over and above the 14% service tax that is prevalent in the present times. One thing worth noting here is that this cess is not applicable on services that are fully exempt of service tax or those services covered under the negative list of services. It is collected by the Consolidate Fund of India and will be used to fund and promote any government campaigns concerning the Swachh Bharat initiatives. This tax, however, is independent of service tax and is charged as a separate line item in invoices.Kanpur Wealth Management
This is yet another cess brought about by the government of India since June of 2016. It is basically introduced in order to extend welfare to all the farmers and to the improvement of agricultural facilities in the country. Like Swachh Bharat cess, this tax is also applicable on all taxable services with an effective rate of 0.5% and is charged over and above the service tax and Swachh Bharat cess.
Infrastructure cess is another tax brought into effect from the 1st of June 2016. Under this tax, a cess of 1% is applicable on petrol/LPG/CNG-driven motor vehicles that are 4 meters or less in length and 1200 cc or less in engine capacity. In case the diesel motor vehicles don’t exceed the 4 meter length and have engines with capacities less than 1500 cc, a tax of 2.5% is to be paid. For big sedans and SUVs, the cess stands at 4% of the overall cost of the vehicle.
Entry tax is a tax levied in select states across the country, like Uttarakhand, Madhya Pradesh, Gujarat, Assam, and Delhi. Under this, all items entering the state ordered via e-commerce establishments are taxed. The rate for this tax varies between 5.5% and 10%.
These are all the types and kinds of taxes that are present in India’s current economic scenarioKanpur Stock. The funds collected from these methods don’t just fuel the country’s revenues but also provide the much-needed impetus to help the lower classes prosper.
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