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The direct taxes are
taxes that are levied directly on individuals and entities based on their
income and wealth.. The primary types of direct taxes in India include:
1. Income
Tax:
This is the most significant direct tax in India, levied on the income of
individuals, Hindu Undivided Families (HUFs), companies, firms, and other
entities. The income tax rates and slabs may vary for different categories of
taxpayers.
2. Corporate
Tax:
This is a tax on the income of companies operating in India. The rates for
corporate tax are applicable based on the type and size of the company. The
government may revise these rates in budgetary announcements.
3. Capital
Gains Tax: This tax is levied on the profit earned from the
sale of capital assets such as real estate, stocks, and mutual funds. Capital
gains are categorized as short-term or long-term, and different tax rates apply
to each.
4. Securities
Transaction Tax (STT): This tax is levied on transactions
involving the purchase or sale of securities such as stocks and derivatives in
the Indian stock market.
