Do you know how many Taxes you pay?
How many taxes do you think you pay? - Income tax, Capital Gain and Gift tax. But this is now true as there is a list of taxes you pay like Entertainment tax, Education cess, Clean Energy cess, National calamity continent tax etc. These are some of the Surcharges and tax that you owe to Government. Let us have a brief introduction about all the taxes that you owe to government.
Service Tax
Every time you avail of a service from an insurer or enjoying a lunch at a hotel, Service tax is included in the bill. It is the responsibility of the service provider to pay this tax, but he simply passes it to customers.
Gift Tax
Whenever a person receives a gift (in form of Shares, Jewellery, Property, Artifacts or cash) worth of 50K INR from a friend, he has to pay tax on it. But remember if the gift are received from inheritance or on marriage through specified relatives are not taxable.
Entertainment Tax
Because of this tax, your movie tickets become expensive. It is levied by state government and varies from 15% to 40%. It is also applicable to large commercial shows.
Luxury Tax
This tax is to be paid by Hotelier when you book a room in a hotel, but he simply passes it to the Customer.
Education cess
The Government feels everybody like to do a charity so levies an education cess of 2 %( on most of the taxes) of the total tax payable.
Secondary & Higher Education cess
Another surcharge like education cess, it is collected to make a better education system in the country. It is also charged at rate of 1% on the tax payable.
Wealth Tax
Too much wealth also attracts a tax of 1%. It is only payable by those persons who have a net value of 30 lakh INR in the form of cash, jewellery, cars or second property.
Excise Duty on Fuel
Known as Road cess, Additional duty of excise that is levied on petrol and diesel at 2 INR per liter. This is collected for Rural development and state road projects. Some part of this duty is shared by National Highways Authority of India and Railways.
Clean energy cess
This tax is imposed on all producers of coal, lignite and peat @50 INR per ton. This cess filters down to manufacturer of products in which it is used and they pass it to the Consumer of the product.
National calamity continent tax
Whenever you buy a two-wheeler, car or SUV, 1% of the price you pay goes to this tax. May be possible in coming year it will be applied to mobile also.
Dividend distribution tax
When you receive dividend on shares or mutual funds, you need not to pay tax on it. They are tax free, But the Companies and debt/debt-oriented mutual funds have to pay the tax known as dividend distribution tax and they usually deduct this from the dividend they pay.
Securities transaction tax
Whenever you buy or sell shares on a stock exchange a small part of money is deducted as STT.
These all are the taxes, which a common man has to pay apart from the Income tax. If you compare the whole year amount you have given to these taxes, May be possible it exceeds the Income tax you are going to pay. But Irony is that this money is enjoyed by Politicians only.
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