Introduction to Budget and Taxation
- The term Budget was used for the first time by the British Economist James Wilson in the year 1860
- The Budget is the annual financial statement of any country for one financial year in India it is between 1st April to 31st March
- The Budget is mentioned under article 112 of the Constitution of India
- The Budget can be introduced only in the Lok Sabha where it should get passed by a simple majority after that it goes to the Rajya Sabha where it should also get passed by a simple majority if the Budget is passed by one house and not by the other house then, in that case, the Council of Ministers along with the Prime Minister is bound to resign
- The general budget and the railway budget were both presented at the same time but since 1924 they both were presented separately but again from 2017 they both are presented at the same time
- The Budget is presented by the Finance Minister of India every year and Mr. Morarji Desai holds therecord for presenting the budget for the maximum number of times
- The first budget of India was presented by then Finance Minister RK Shanmukham Chetty on November 26, 1947.
- The maximum number of 10 budgets have been presented by Morarji Desai. P Chidambaram is second in place to present eight budgets.
- Pranab Mukherjee, Yashwant Sinha, YB Chavan and CD Deshmukh have presented seven budgets each in the past.
- The difference between the house budget and country’s budget is that the house budget is the budget of consumption and it is always a surplus budget where as the country’s budget is a budget of investment and it is always a deficit budget
The taxes are of two types-
Direct taxes are those taxes in which the point of incidence and the point of impact are both the same. The direct taxes in India are collected by the Central Board for Direct Taxes
- Income Tax
Income Tax Act, 1961 imposes a tax on the income of the individuals or Hindu undivided families or firms or co-operative societies (other ten companies) and trusts (identified as bodies of individuals associations of persons).
- Corporation Tax
The companies and business organizations in India are taxed on the income from their worldwide transactions under the provision of the Income Tax Act, 1961.
- Property Tax
Property tax or 'house tax' is a local tax on buildings, along with appurtenant land, and imposed on owners. The tax power is vested in the states and it is delegated by law to the local bodies, specifying the valuation method, rate band, and collection procedures.
- Gift Tax
Gift tax in India is regulated by the Gift Tax Act which was constituted on 1st April 1958. It came into effect in all parts of the country except Jammu and Kashmir. As per the Gift Act 1958, all gifts in excess of Rs. 50,000.
- Wealth Tax
This tax has been abolished from 1st April 2016
- Toll Tax
This tax has been imposed on the use of the roads
- Sin Tax
This tax is not applicable in India this tax has been imposed on illegal activities.
Indirect taxes are those taxes in which the point of incidence and the point of impact are both different. The indirect taxes in India are collected by the Central Board for Excise and Customs.
- Service Tax
It is the type of tax which is paid on the services taken by the government
- Entertainment Tax
This tax is imposed by the state government on the entertainment sector
This tax is imposed when the buyer and the seller is both in the same state
- Sales Tax
This tax is imposed when the buyer and the seller is in different states
- State Excise Duty
This duty is imposed only on the production of the liquor. It is imposed by the State Government
- Central Excise Duty
This duty is imposed on the production of all the commodities and it is imposed by the Central Government
- Customs Duty
This duty is imposed on the imports and exports
- Security Transaction Tax
This tax is imposed on the transaction in the capital market
This tax has been imposed from 1st July 2017 and it is the merger of all the indirect taxes.