colaws

The entire amount of income tax collected by central government is classified under two heads i.e . 1-Corporation tax          ( tax on income of companies ) 2-Income tax          ( tax on income of non- corporate assessees) The income tax act , 1961  and The income tax Rules, 1922 governs income tax in india.

Taxes are collected to provided a sufficient revenue to state, these are the means or else can be said as the instrument through which economic and social objectives of a welfare state can be achieved . As per Article 265, only the authority of law have the power to collect or levied the taxes. so the tax propsed to be levied or collected must be within the legislative competence  of legislature imposing the tax and it must not violate any fundamental rights. and since income tax entry appeared in union list, responsibility of  collection of income tax lies in the hands of central government while other indirect taxes or GST depend upon the circumstances weather for state or for central.

What is objective of studying tax.. especially income tax?? The taxes are the basic source of revenue for government , revenue raised from the taxes are utilized for meeting the expense of government like, provisions of education , infrasuctural facilities such as road dams etc.. The taxes that are levied directly on the income or wealth of person are the direct taxes while the taxes which are paid by the person other than who utilizes the product are indirect taxes.. while at present all the indirect taxes are subsumed in  GST... but still some are not subsumed in gst like customs.. GST(Goods and Service taxes) Income tax is one of the form of direct taxes.. and by studying income tax.. we get a proper knowledge about the tax on income of an individual ,company  firm.. etc..