How are taxes leevied in India.

Answer»

Taxes is levied by the Government progressively, proportionately as well as Regressively.

Progressive Tax: Progressive Tax rate is one in which the rate of taxation increase as the tax base increases. When income increases, the tax rate also increases.

This is known as a progressive tax:

Tax Base	Tax Rate	Amount of Tax
10,000	10%	1000
20,000	15%	3000
30,000	25%	7500

Proportional Tax: Tax levied on goods and services in fixed portion is known as proportionate taxes. Tax amount varies in the same proportion to that of Income.

Tax Base	Tax Rate	Amount of Tax
10,000	10%	1000
20,000	10%	2000
30,000	10%	3000

Regressive Tax: It implies that higher the rate of tax, lower the income groups than in the case of higher income groups.

That is, tax is levied uniformly at a flat percentage regardless who the purchaser or owner

Eg: Sales Tax, Property Tax.

Discussion

No Comment Found

Related InterviewSolutions

What were the two main occupations of the Rig Vedic Aryans?
Name the two political institutions which exercised check on the powers of the King in the Rig Vedic period.
What w’as the position of women in the Rig Vedic age ?
Describe the social life of the Rig Vedic Aryans with reference to the following: (a) The Family Structure (b) Position of Women (c) Varna System
With reference to the following explain the main features of the Rig Vedic Economy: (a) Agriculture (b) Domestication of Animals (c) Trade Transactions, Crafts and Transportation
Mention any two archaeological sources to reconstruct the later Vedic Age.
Mention any two of the Ashrams in the life of a man in Aryan society.
What information do we gather from the later Vedic literature in respect of: (a) Spread of Vedic Civilization to many New Regions. (b) Role of Iron in later Vedic Economy.
Mention briefly the rituals and sacrifices of the later Vedic Aryans?
What is the message of the Bhagavad Gita?