Introduction to Taxation in India


Taxation in India is governed by the Central Government and the respective state governments. Taxes are levied on individuals, businesses, goods, and services to generate revenue for the government. It is mandatory for a different business structure to abide by the taxation and GST annual compliance applicable to them.


Unlike other legal compliance, it is also necessary to go for Income tax return filing is vital for every company. If you need assistance related to taxation, trademark, LUT registration, or others, contact Valcus anytime. We are happy to serve you always.


 Under the above category Taxation & Others, our Valcus team provides a range of solutions to taxation and other business needs. 

  1. Income Tax – 

We under this category cover – 

  • Income tax return filing
  • TDS return filing
  • Tax audit under income tax
  • Advance payment of income tax

Get A Support To Start For taxation and others


  1. Goods & Service Tax

Under this head, we at Valcus provide professional solutions to your following needs – 

  • GST registration
  • GST return filing
  • GST LUT registration
  • GST annual compliance 

Other Solution includes – 
 

  • Trademark registration
  • Trademarks renewal
  • Trademark objection filing
  • Accounting & Bookkeeping

About The Varied Types of Taxation


There are taxes of different types in the country. The percentage of tax may vary depending on the location and type of goods, services, and other factors. You can expand your knowledge about it to avoid any kind of legal action due to non-payment of the applicable tax on you. You can appoint us also for your company TDS return filing needs.

Below are the different types of taxation in India:

  1. Direct Tax Category
  • Income tax 
  • Gift tax
  • Capital gain tax, etc.
     
  1. Indirect Tax Category
     
  • Value-added tax 
  • Service tax
  • Goods and services tax
  • Customs duty, etc. 
     
  1. Other Taxes
     
  • Customs duty
  • Central excise duty 
  • Income tax 
  • Service tax
Taxation and Others

Why Abide by the Taxation Laws in India?

Every legal entity in the country needs to abide by taxation laws in India for several reasons. First and foremost, it is a legal obligation for every entity in the country to file ITR on time as per the law. Failure to comply with taxation laws can result in penalties, fines, and even imprisonment in some cases. Advance payment of income tax is also recommended.


Also, taxation is the primary source of revenue for the government, which is essential for providing various public services and infrastructure development in the country. By paying taxes, citizens contribute to the development of the country and ensure that the government has the necessary resources to carry out its functions. We can also help you with your Accounting & Bookkeeping needs.


Paying the necessary Income tax and Goods & Service Tax timely help maintain a good credit score. It improves the financial reputation of a company. Your creditworthiness and a good credit score help you easily avail of credit facilities from different financial institutions including business loans, project loans, overdrafts, etc.        

Annual Tax Compliance in India

Annual tax compliance in India refers to the process involved in filing tax returns and ensuring that all tax-related obligations are fulfilled within the due date. You get many advantages if you abide by tax compliance.  

The following are the advantages of annual tax compliance:
  • Maintain a Good Financial Reputation
  • Claim Tax Refunds
  • Avoid Penalties and Interest Charges 
  • Stay Compliant with Tax Laws
  • Plan for Future Tax Obligations


Remember, annual tax compliance in India is necessary for every registered legal business. It is also required to stay compliant with different tax laws to avoid penalties or other legal actions.

Why not maintain a good financial reputation, claim tax refunds, and plan for future tax obligations instead of paying penalties? The team at Valcus can assist you with your ITR, GST filing, taxation and other business needs.

Frequently Asked Questions

The Income Tax Act is a law that governs the taxation of income earned by individuals, businesses, and other entities in India. It applies to all Indian residents and non-residents who earn income in India.

GST or Goods and Services Tax are an indirect tax levied on the supply of goods and services. It is a value-added tax that is collected at each stage of the supply chain. GST replaced multiple indirect taxes such as excise duty, service tax, and VAT.

Direct taxes are taxes levied on the income or property of an individual or business, while indirect taxes are taxes levied on goods and services. Examples of direct taxes include income tax and property tax, while examples of indirect taxes include GST and excise duty.

The applicable Income tax is calculated based on the income earned by the individual or business during the financial year after taking into account various deductions and exemptions. The tax rate varies depending on the income slab in which the taxpayer or a business falls.

TDS or Tax Deducted at Source is a system in which the person responsible for making payment deducts tax at the source and deposits it with the government. It applies to certain types of payments, such as salaries, interest, and rent. The deductor issues a TDS certificate to the deductee.

Tax evasion is a criminal offence in which an individual or business intentionally avoids paying taxes or misrepresents their income to the tax authorities. The penalty for tax evasion can range from heavy fines to imprisonment depending on the severity of the offence.

An Indian company is required to pay a flat 25% corporate tax if its annual turnover is up to 250 crores. If the total revenue earner in a particular financial year exceeds rupee 1 crore then such a corporate has to pay a surcharge of 5%. For more information on applicable taxes, you can consult our professional tax consultants at Valcus Pvt. Ltd. in Delhi.

Yes, businesses in India are allowed to file a revised tax return if they find errors or omissions in the original tax return filed. But make sure you file the revised return within the allowed time frame. For assistance on Taxation in India, trust the experienced team at Valcus Pvt. Ltd. in India.