What is tax?

Tax is money that people and businesses pay to the government, which helps fund public services like healthcare, education, and infrastructure.

What are the main types of taxes in India?

The two main types of taxes in India are Direct Taxes (like income tax) and Indirect Taxes (like GST and excise duty).

What is GST?

GST (Goods and Services Tax) is a single tax system introduced in 2017 to replace multiple indirect taxes like VAT and excise duty. It simplifies the tax process for goods and services.

Who pays income tax in India?

Individuals and businesses that earn a certain amount of income have to pay income tax. The amount of tax depends on the income level.

How is income tax calculated?

Income tax is calculated based on the income slabs set by the government. The more you earn, the higher the percentage of tax you need to pay.

What is the income tax slab system?

The Income Tax Slab System divides income into different ranges, with each range being taxed at different rates. Higher incomes are taxed at higher rates.

How often should taxes be paid?

Taxes must be paid regularly, with income tax usually paid annually, and GST paid monthly or quarterly, depending on the business type.

What is the difference between direct and indirect taxes?

Direct taxes are paid directly by individuals or businesses (e.g., income tax), while indirect taxes are collected by businesses from consumers (e.g., GST, excise duty).

What happens if I don’t pay my taxes on time?

If taxes are not paid on time, the government may charge penalties or interest. In some cases, legal action may be taken.

Is GST applicable on all goods and services?

GST applies to most goods and services, but some items may be exempt or taxed at a lower rate. Certain items, like basic food items, may be exempt or taxed at 0%.