Budget in A Minute: What is Direct tax? Zee Business Managing Editor Anil Singhvi explains
Direct tax is a tax which the government takes from you on the income you earn
Considering Budget 2020 will be presented on soon (February 1, 2020), it is necessary for all to get up to speed on certain key terminologies concerning the big day. Here Zee Business Managing Editor Anil Singhvi explains what direct tax is. Direct tax is a tax which the government takes from you on the income you earn. If you have earned some money, the government takes some of it from you as a tax while you keep the rest. This means that if you earn an income, you are liable to pay taxes. Needless to say, if you do not have an income, you are not required to pay any tax.
There are a lot of taxes like the gift tax, wealth tax, short term capital gains tax (STCG), long term capital gains tax (LTCG), If you are making an income then you may be required to pay these taxes. This is applicable to individuals as well as companies. The companies are also required to pay direct taxes in the form of corporate tax.
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The meaning of direct tax is very clear - a tax directly associated with your income. Remember that everybody has to give a direct tax whoever is earning an income. Nobody can get away from it. The only way you can avoid it is by not making any income!
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This will be Finance Minister Nirmala Sitharaman's second budget presentation. However, it will be the first full budget to be presented during PM Narendra Modi led NDA government's second term.
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