Concept of taxation

What is the meaning of Tax? Taxation, imposition of compulsory levies on individuals or entities by governments. Taxes are levied in almost every country of the worl primarily to raise revenue for government expenditures, although they serve other purposes as well. Corporate tax : This type of tax is imposed on the profit of a business.

Capital gains : A tax on capital gains is imposed on any. Tax is a compulsory payment to government under any law. It can be charged by government on goods,income or any activity. The legislature (law maker) is vested with the responsibility and power to make laws.

The judiciary interprets the Law and Administration implements the law. Definition and Concept of Taxation - Mode by which governments make exactions for revenue in order to support their existence and carry out for their legitimate objectives. Taxation is a term for when a taxing authority , usually a government , levies or imposes a tax. The term taxation applies to all types of involuntary levies, from income to capital gains to estate taxes.

The power of taxation upon necessity and is inherent in every government or sovereignty. In the cities the concept developed of a tax obligation encompassing all residents: the burden of taxes on certain foods and beverages was intended to be borne partly by consumers and partly by producers and tradesmen. Indirect: Are all those taxes that affect what is consumed or spent, such as VAT or taxed. Double taxation is a situation that affects mainly multinational corporations when business profits are taxed at both the corporate and personal levels.

The corporation has to pay income tax at the corporate rate before any profits are to be paid to shareholders. While some argue that taxing shareholders on their dividends is unfair, because these funds were already taxed at the. Consumption Based: The system in which the tax is imposed on spending on goods and services. Progressive: The system in which tax rate increases as the taxable.

Taxation refers to the practice of a government collecting money from its citizens to pay for public services. Without taxation , there would be no public libraries or parks. One of the most frequently debated political topics is taxation.

Taxation is the practice of collecting taxes (money) from citizens based on their earnings and property. Once you know your taxable income, there are then different tax rates for different income levels. Even this is not quite the whole story. The term taxation applies to all types of involuntary levies, from income to capital gains to estate taxes.

The marginal tax rate of percent is greater than the average tax rate of 12. There is a difference between the tax you pay on average and the tax rate charged on the last dollar of income. The average tax rate can also be given a graphical interpretation. It is the slope of a line from the origin to the point on the graph.

The major objective of taxation is to raise revenues. But other objectives are also important in the design of a tax system. The principle of taxation can be chosen only in terms of the goals which are accepted as the appro­priate objectives of the economic system.

A means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. The most popular and commonly accepted principle of equity or justice in taxation is that citizens of a country should pay taxes to the government in accordance with their ability to pay.

It appears very reasonable and just that taxes should be levied on the basis of the taxable capacity of an individual. Tax Concept ’s Letter to Hon’ble Prime Minister for Serious Issues Regarding GST. Outcome of 42nd GST Council Meeting Held on 05.

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