Direct Taxes :

Income Tax , Wealth Tax , Gifts Tax all are considered direct taxes

Income Tax :
There are various heads of income for all assessee:-
1. Income from Salary
2. Income from House Property
3. Income from Business and Profession
4. Income from Capital Gains
5. Income from Other Sources

How it works
Every individual/HUF or company has to get individual PAN number . This unique card is applied at any where in India with a nominal fee. Documents of proof of resident /registration and date of birth/formation are required for Pan application along with a passport size snap

Individuals in India have to file there income tax returns on or up to 31st September every year . NRI Indians have to file returns while they have obtained any income by selling there property or through foreign funds invested in India.Whereas partnership firms ,companies ,AOP’s ,HUF’s , Clubs and Societies have different provisions to file there returns.

Corporate Income tax

For companies, income is taxed at a flat rate of 30% for Indian companies, with a 10% surcharge applied on the tax paid by companies with gross turnover over Rs. 1 crore (10 million).

Foreign companies pay 40%.An education Cess of 3% (on both the tax and the surcharge) are payable, yielding effective tax rates of 33.99% for domestic companies and 41.2% for foreign companies.

From 2005-06, electronic filing of company returns is mandatory

Wealth Tax & Gift Tax

There is provision of levying Gift tax in case gifts are made in India and wealth tax for those who have created real estates and monitory wealth up to a certain extent the provision attracts accordingly for taxation purpose.