1. The word “TAX” has been derived from the Latin word called “TAXO”.
2. TAX is an income to the government of any country. With this the country works and all the development takes place.
3. There are 2 types of taxes present in INDIA: a) Direct Tax
b) Indirect Tax
4. In this blog I will talking about direct tax also known as income tax.
5. As per Article 265 only the Authority of Law right to levy and collect tax not any other Law.
6. As per Article 245 & Article 123 only PARLIAMENT and PRESIDENT ( when parliament not in session).
7. As per Article 270 all the taxes and duties except levied by central government shall be distibuted between Union and State.
8. As per Article 271 a Surcharge which is an additional tax or duties are collected by central government.
9. There a special cess called as HEC which is specially used for 2 cases first HEALTH and second EDUCATION.
10. Tax is covered under entry no. 82 of Union List and is applicable to whole INDIA( including Jammu and Kashmir).
11. Income Tax has been bifurcated between 5 Heads of Income: a. Income from Salary b. Income from House Property c. Income from Business and Profession d. Capital Gains e. Income from Other Sources