How many types of Taxes we daily pay in India:
TAX & REGULATION
7/17/20253 min read
We pay taxes every day – without knowing it
when we hear the word “tax”, most people think only of income tax. but the reality is that we pay many types of taxes every day, even when we drink tea, recharge our phones, or travel by bus. In this blog,
I will tell you in simple language in which ways we pay tax every day in India.
What is tax:
Tax is the money we give to the government. With this money the government builds roads, runs schools, pays the police and army, and maintains public services.
There are two types of taxes:
DIRECT TAX: which we directly pay to government, like income tax
INDIRECT TAX: which we pay when we purchase goods and services like GST.
Now let’s see how many taxes we pay every day –
1.Goods and Services Tax (GST):
GST is the most common tax today. whenever we buy something or use any service, GST is included in it.
WHERE GST IS PAID:
grocery and online shopping
eat in restaurant
mobile recharge
clothing or electronics
ticket booking
For example-
there is approximately 45 rupees GST in a mobile recharge of 299. we don’t even realize it and we pay tax to the gov through GST.
2. Tax on Patrol, Diesel, and gas:
GST is not levied on patrol and diesel; hence the old taxes are still applicable on them:
Excise duty (Central Government)
VAT (State Government)
Cess (Special Tax)
3. Electricity Tax:
Ever month electricity bill also includes one out of types of taxes we pay called electricity duty. This goes to the state government.
example: A bill of 800 rupees may have tax upto140-160 rupees.
4. Mobile and internet Tax:
You pay 18%GST while paying mobile recharge or Wi-Fi bill.
Example: Recharge of 500 rupees has around 90 rupees tax. Nowadays, we pay this tax almost every week or month.
5. Toll Tax:
If you travel on a highway, you must pay toll tax at the toll plaza.
example: Toll tax may be 160-170 rupees for a one-way journey.
even if you take a bus or taxi, sales tax is included in the fare.
6. Property Tax:
If you own a house, you pay property tax to the municipal corporation every year. even if you live on rent, the landlord may pay, and the rent may be affected.
7. Water Tax:
Water tax is also one of the types of taxes which included in the water bill given by the municipality. It is used for cleaning and supply of water.
8. Stamp Duty and Registration charges:
If you buy a house, property or rent agreement, then stamp duty and registration fees is applicable.
for example: A flat worth 1 crore 50 lakh may attract tax of 3-15 lakh rupees.
9. Road Tax:
Road tax is one of the types of taxes which has to be paid on buying a new vehicle. It is usually taken once but due to its effect auto, bus fare increases. So, you pay it indirectly on daily basis.
10. Entertainment Tax:
Despite other types of taxes some states still enjoy the entertainment tax.
Example;
IPL, match
Entry in fairs
In some cinemas
11. Capital Gain Tax:
If you sell stock, mutual fund, or property and make a profit, you pay capital gain tax, paying tax is not everyday occurrence but it is important for investors.
12. Cess and Surcharge:
These are taxes over and above taxes, which are levied for specific purposes.
example:
4% health and education cess
Swatch Bharat cess
agriculture and welfare cess
INCOME TAX
If you receive a salary, TDS deducted from your salary every month. Pay is kind of income tax installment.
self-employed people pay taxes once or twice in seven years.
Conclusion:
If No One Gives Damn, you can say – we all give, all types of taxes every day.
From buying every chocolate to boarding a bus, we pay tax, Taxes help us to make the country proud. Roads, schools, hospitals, everything is built with the money of gods.
If we understand taxes, we can become a responsible citizen and can also plan our expenses better.
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