Direct Taxes: How to avoid being overtaxed

Various direct taxes payable in India are:

1. Income tax: This is the tax that an individual, business firm or HUF (Hindu Undivided Family) has to pay as the respective income slab they constitute. It is a mandatory tax and is levied on income in the form of salary, earnings from business, capital gains, etc.
2. Wealth tax: This tax is levied on individuals, corporate establishments, HUFs on any earnings or profits from the ownership of property.
3. Corporate tax: This is the tax that is levied on companies and foreign ventures on the earnings made in Indian geographical domain. Taxes like DDT (Dividend Distribution Tax), FBT (Fringe Benefit Tax) and STT (Securities Transaction Tax) come under the purview of corporate taxation.
4. Capital Gains tax: This is the tax that is levied on the earnings made through investment instruments and related value holdings.

The governing body for direct taxation in India is the CBDT (Central Board of Direct Taxes). CBDT itself is a functioning body that comes under the supervision and regulation of the Revenue Department of the Finance Ministry of the Government of India. Central Board of Revenue Act, 1963 served as the turning point for direct taxation in India and CBDT came into being. CBDT mandates the rules, regulations and any updates regarding the way collection of direct taxes in India is done. Al the working procedures of the Income Tax department segments and the concerned officials responsible for financial audits vis-à-vis direct tax recovery, defaults, tax-evasion etc. are laid into effect by CBDT, under the Finance Ministry.

HDFC Life offers savings and investment plans that are aimed at helping your stay financially healthy at all times and securing the future of your loved ones. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans .

Income Tax calculator