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What is Direct Tax? - Direct Tax Types, Rates & Advantages
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aria-label="Co-branded Credit Cards">Co-branded Credit Cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/credit-card/rbl-bank-bankbazaar-savemax-credit-card.html" title="RBL SaveMax Credit Card" aria-label="RBL SaveMax Credit Card">RBL SaveMax Credit Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/credit-card/finbooster-yes-bank-bankbazaar-co-branded-credit-card.html " title="Yes Bank FinBooster Credit Card" aria-label="Yes Bank FinBooster Credit Card">Yes Bank FinBooster Credit Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/hdfc-credit-card.html" title="HDFC Credit Cards" aria-label="HDFC Credit Cards">HDFC Credit Cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sbi-credit-card.html" title="SBI Credit Cards" aria-label="SBI Credit Cards">SBI Credit Cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/indusind-credit-card.html" title="Indusind Bank Credit cards" aria-label="Indusind Bank Credit cards">Indusind Bank Credit cards</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/credit-card/top-10-credit-cards-in-india.html" title="Top 10 Credit Cards" aria-label="Top 10 Credit Cards">Top 10 Credit Cards</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-school mr-2 h-full"><path d="M14 22v-4a2 2 0 1 0-4 0v4"></path><path d="m18 10 4 2v8a2 2 0 0 1-2 2H4a2 2 0 0 1-2-2v-8l4-2"></path><path d="M18 5v17"></path><path d="m4 6 8-4 8 4"></path><path d="M6 5v17"></path><circle cx="12" cy="9" r="2"></circle></svg>Home Loans<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan.html" title="Compare Home Loans" aria-label="Compare Home Loans">Compare Home Loans</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/emi-calculator.html" title="Home Loan Calculator" aria-label="Home Loan Calculator">Home Loan Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan-interest-rate.html" title="Home Loan Interest Rates" aria-label="Home Loan Interest Rates">Home Loan Interest Rates</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan-eligibility.html" title="Home Loan Eligibility" aria-label="Home Loan Eligibility">Home Loan Eligibility</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan-balance-transfer.html" title="Home Loan Transfer" aria-label="Home Loan Transfer">Home Loan Transfer</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/pradhan-mantri-awas-yojana.html" title="PMAY" aria-label="PMAY">PMAY</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sbi-home-loan.html" title="SBI Home Loan" aria-label="SBI Home Loan">SBI Home Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/hdfc-home-loan.html" title="HDFC Home Loan" aria-label="HDFC Home Loan">HDFC Home Loan</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-indian-rupee mr-2 h-full"><path d="M6 3h12"></path><path d="M6 8h12"></path><path d="m6 13 8.5 8"></path><path d="M6 13h3"></path><path d="M9 13c6.667 0 6.667-10 0-10"></path></svg>Personal Loans<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan.html" title="Compare Personal Loans" aria-label="Compare Personal Loans">Compare Personal Loans</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan/emi-calculator.html" title="Personal Loan Calculator" aria-label="Personal Loan Calculator">Personal Loan Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan-interest-rate.html" title="Personal Loan Interest Rates" aria-label="Personal Loan Interest Rates">Personal Loan Interest Rates</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan-eligibility.html" title="Personal Loan Eligibility" aria-label="Personal Loan Eligibility">Personal Loan Eligibility</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sbi-personal-loan.html" title="SBI Personal Loan" aria-label="SBI Personal Loan">SBI Personal Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/hdfc-personal-loan.html" title="HDFC Personal Loan" aria-label="HDFC Personal Loan">HDFC Personal Loan</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-indian-rupee mr-2 h-full"><path d="M6 3h12"></path><path d="M6 8h12"></path><path d="m6 13 8.5 8"></path><path d="M6 13h3"></path><path d="M9 13c6.667 0 6.667-10 0-10"></path></svg>Other Loans<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/car-loan.html" title="Car Loan" aria-label="Car Loan">Car Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/two-wheeler-loan.html" title="Two Wheeler Loan" aria-label="Two Wheeler Loan">Two Wheeler Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/education-loan.html" title="Education Loan" aria-label="Education Loan">Education Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/gold-loan.html" title="Gold Loan" aria-label="Gold Loan">Gold Loan</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/loan-against-property.html" title="Loan Against Property" aria-label="Loan Against Property">Loan Against Property</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-calculator mr-2 h-full"><rect width="16" height="20" x="4" y="2" rx="2"></rect><line x1="8" x2="16" y1="6" y2="6"></line><line x1="16" x2="16" y1="14" y2="18"></line><path d="M16 10h.01"></path><path d="M12 10h.01"></path><path d="M8 10h.01"></path><path d="M12 14h.01"></path><path d="M8 14h.01"></path><path d="M12 18h.01"></path><path d="M8 18h.01"></path></svg>Calculators<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/finance-tools/emi-calculator.html" title="EMI Calculator" aria-label="EMI Calculator">EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/home-loan/emi-calculator.html" title="Home Loan EMI Calculator" aria-label="Home Loan EMI Calculator">Home Loan EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/personal-loan/emi-calculator.html" title="Personal Loan EMI Calculator" aria-label="Personal Loan EMI Calculator">Personal Loan EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/car-loan/emi-calculator.html" title="Car Loan EMI Calculator" aria-label="Car Loan EMI Calculator">Car Loan EMI Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/income-tax-calculator.html" title="Income Tax Calculator" aria-label="Income Tax Calculator">Income Tax Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/fixed-deposit/fd-calculator.html" title="FD Calculator" aria-label="FD Calculator">FD Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/recurring-deposit/rd-interest-calculator.html" title="RD Calculator" aria-label="RD Calculator">RD Calculator</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/calculators.html" title="All Financial Calculators" aria-label="All Financial Calculators">All Financial Calculators</a></li></ul></div></details></div><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-indian-rupee mr-2 h-full"><path d="M6 3h12"></path><path d="M6 8h12"></path><path d="m6 13 8.5 8"></path><path d="M6 13h3"></path><path d="M9 13c6.667 0 6.667-10 0-10"></path></svg>Investments<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/fixed-deposit-rate.html" title="Fixed Deposit" aria-label="Fixed Deposit">Fixed Deposit</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/recurring-deposit-rates.html" title="Recurring Deposit" aria-label="Recurring Deposit">Recurring Deposit</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/savings-account.html" title="Savings Account" aria-label="Savings Account">Savings Account</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/saving-schemes.html" title="Saving Schemes" aria-label="Saving Schemes">Saving Schemes</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/gold-rate-india.html" title="Gold Rate" aria-label="Gold Rate">Gold Rate</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/silver-rate-india.html" title="Silver Rate" aria-label="Silver Rate">Silver Rate</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/mutual-fund.html" title="Mutual Funds" aria-label="Mutual Funds">Mutual Funds</a></li></ul></div></details></div><span><a href="/credit-score.html" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 minW-auto bg-inherit text-inherit hover:bg-inherit no-underline h-auto text-wrap font-medium focus-visible:ring-0 w-full py-4"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-wallet-cards mr-2 h-full"><rect width="18" height="18" x="3" y="3" rx="2"></rect><path d="M3 9a2 2 0 0 1 2-2h14a2 2 0 0 1 2 2"></path><path d="M3 11h3c.8 0 1.6.3 2.1.9l1.1.9c1.6 1.6 4.1 1.6 5.7 0l1.1-.9c.5-.5 1.3-.9 2.1-.9H21"></path></svg><span class="flex-auto "><strong><p class="text-sm ">Credit Score</p></strong></span><img src="https://www.bankbazaar.com/images/common/bbicons-menu-free-badge.webp" alt="FREE" title="FREE" width="40" height="20" style="max-width:100%;display:inline"/></a></span><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-file-text mr-2 h-full"><path d="M15 2H6a2 2 0 0 0-2 2v16a2 2 0 0 0 2 2h12a2 2 0 0 0 2-2V7Z"></path><path d="M14 2v4a2 2 0 0 0 2 2h4"></path><path d="M10 9H8"></path><path d="M16 13H8"></path><path d="M16 17H8"></path></svg>Govt. Utility Documents<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ul class="list-none "><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/pan-card.html" title="Pan Card" aria-label="Pan Card">Pan Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/aadhar-card.html" title="Aadhaar Card" aria-label="Aadhaar Card">Aadhaar Card</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/voter-id.html" title="Voter ID" aria-label="Voter ID">Voter ID</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/electricity-bill.html" title="Electricity Bill" aria-label="Electricity Bill">Electricity Bill</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/driving-licence.html" title="Driving Licence" aria-label="Driving Licence">Driving Licence</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/passport.html" title="Passport" aria-label="Passport">Passport</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/visa.html" title="Visa" aria-label="Visa">Visa</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/gas-connection.html" title="Gas Connection" aria-label="Gas Connection">Gas Connection</a></li><li class="text-sm ml-6 pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/ration-card.html" title="Ration Card" aria-label="Ration Card">Ration Card</a></li></ul></div></details></div><span><a href="/getapp.html" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 minW-auto bg-inherit text-inherit hover:bg-inherit no-underline h-auto text-wrap font-medium focus-visible:ring-0 w-full py-4"><span class="mr-2"><img src="https://www.bankbazaar.com/images/common/bbicons-menu-download-app.webp" alt="Download App" title="Download App" width="25" height="28" style="max-width:100%;display:inline"/></span><span class="flex-auto "><strong><p class="text-sm ">Download Mobile App</p></strong></span><img src="https://www.bankbazaar.com/images/common/bbicons-menu-android-star-badge.webp" alt="Badge" title="Badge" width="12" height="20" style="max-width:100%;display:inline"/></a></span><div class="border bg-transparent hover:bg-transparent text-sm"><details name="accordion" class="px-4 py-4"><summary class="cursor-pointer block relative"><strong><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-umbrella mr-2 h-full"><path d="M22 12a10.06 10.06 1 0 0-20 0Z"></path><path d="M12 12v8a2 2 0 0 0 4 0"></path><path d="M12 2v1"></path></svg>Insurance<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 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title="Section 80C to 80U" target="_blank" aria-label="Section 80C to 80U">Section 80C to 80U</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/property-tax.html" title="Property Tax" target="_blank" aria-label="Property Tax">Property Tax</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/bbmp-property-tax.html" title="BBMP Property Tax" target="_blank" aria-label="BBMP Property Tax">BBMP Property Tax</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/mcd-property-tax.html" title="MCD Property Tax" target="_blank" aria-label="MCD Property Tax">MCD Property Tax</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/road-tax.html" title="Road Tax" target="_blank" aria-label="Road Tax">Road Tax</a></li><li class="text-sm pt-1 pb-1"><a 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class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/sales-tax.html" title="Sales Tax" target="_blank" aria-label="Sales Tax">Sales Tax</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/excise-duty.html" title="Excise Duty" target="_blank" aria-label="Excise Duty">Excise Duty</a></li><li class="text-sm pt-1 pb-1"><a class="inline-flex hover:underline no-underline text-bbBlue" href="/tax/cost-inflation-index.html" title="Cost Inflation Index" target="_blank" aria-label="Cost Inflation Index">Cost Inflation Index</a></li></ul></div></div><div data-inline-ad-position="LEFT_NAV"></div></aside></div><div class=" lg:col-span-10 md:col-span-10 col-span-12"><div class="flex flex-col gap-2.5 px-1"><div class="items-center flex gap-2.5"><h1 class="text-xl font-bold ">Direct Tax - Meaning, Types & Tax Rates</h1></div><div class="rounded-lg border border-slate-200 text-slate-950 shadow-sm dark:border-slate-800 dark:bg-slate-950 dark:text-slate-50 relative bg-primary-light"><div class="p-2.5"><div class="pr-md font-large" style="max-height:500px;overflow-y:auto"><p class="text-base ">A type of tax where the impact and the incidence fall under the same category can be defined as a Direct Tax.</p></div></div></div><div><div class="mb-xl"><span style="background-color:#ffff009c" class="mb-xl"></span></div><div role="alert" class="relative w-full rounded-lg border border-slate-200 p-4 [&>svg~*]:pl-7 [&>svg+div]:translate-y-[-3px] [&>svg]:absolute [&>svg]:left-4 [&>svg]:top-4 [&>svg]:text-slate-950 dark:border-slate-800 dark:[&>svg]:text-slate-50 text-slate-950 dark:bg-slate-950 dark:text-slate-50 border-none bg-sky-100"><p class="font-bold ">Table of Contents</p><span><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><a href="#types_of_direct_1">Types of Direct Taxes</a></li><li class="pt-1 pb-1"><a href="#tax_rate_for_th_2">Tax Rate for the Different Types of Direct Tax</a></li><li class="pt-1 pb-1"><a href="#new_income_tax__3">New Income Tax Slab for Individuals</a></li><li class="pt-1 pb-1"><a href="#direct_tax_code_4">Direct Tax Code</a></li><li class="pt-1 pb-1"><a href="#explanation_of__5">Explanation of the Direct Tax Codes</a></li><li class="pt-1 pb-1"><a href="#advantages_of_d_6">Advantages of Direct Taxes</a></li></ol></span></div><div class="flex flex-col gap-1"><p class="text-base ">The <a href="/tax.html" target="_blank">tax </a>is paid directly by the organisation or an individual to the entity that has imposed the payment. The tax must be paid directly to the government and cannot be paid to anyone else.</p><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check FREE Credit Score">Check FREE Credit Score</a></div><h2 class="text-lg font-bold pt-5">Types of Direct Taxes</h2><p class="text-base ">The various types of direct tax that are imposed in India are mentioned below:</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Income Tax:聽</strong>Depending on an individual's age and earnings, <a href="/income-tax.html" target="_blank">income tax</a> must be paid. Various tax slabs are determined by the Government of India which determines the amount of Income Tax that must be paid. The taxpayer must file <a href="/tax/income-tax-return.html" target="_blank">Income Tax Returns </a>(ITR) on a yearly basis. Individuals may receive a refund or might have to pay a tax depending on their ITR. Huge penalties are levied in case individuals do not <a href="/tax/efiling-income-tax.html" target="_blank">file ITR</a>.</li><li class="pt-1 pb-1"><strong>Wealth Tax:聽</strong>The tax must be paid on a yearly basis and depends on the ownership of properties and the market value of the property. In case an individual owns a property, wealth tax must be paid and does not depend on whether the property generates an income or not. Corporate taxpayers, Hindu Undivided Families (HUFs), and individuals must pay wealth tax depending on their residential status. Payment of wealth tax is exempt for assets like gold deposit bonds, stock holdings, <a href="/tax/tax-on-income-from-house-property.html" target="_blank">house property</a>, commercial property that have been rented for more than 300 days, and if the house property is owned for business and professional use.</li><li class="pt-1 pb-1"><strong>Estate Tax:聽</strong>It is also called as Inheritance Tax and is paid based on the value of the estate or the money that an individual has left after his/her death.</li><li class="pt-1 pb-1"><strong>Corporate Tax:聽</strong>Domestic companies, apart from shareholders, will have to pay corporate tax. Foreign corporations who make an income in India will also have to pay corporate tax. Income earned via selling assets, technical service fees, dividends, royalties, or interest that is based in India are taxable. The below-mentioned taxes are also included under Corporate Tax:<ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Securities Transaction Tax (STT):聽</strong>The tax must be paid for any income that is earned via security transactions that are taxable.</li><li class="pt-1 pb-1"><strong>Dividend Distribution Tax (DDT):聽</strong>In case any domestic companies declare, distribute, or are paid any amounts as dividends by shareholders, DDT is levied on them. However, DDT is not levied on foreign companies.</li><li class="pt-1 pb-1"><strong>Fringe Benefits Tax:聽</strong>Companies that provide fringe benefits for maids, drivers, etc., Fringe Benefits Tax is levied on them.</li><li class="pt-1 pb-1"><strong>Minimum Alternate Tax (MAT):聽</strong>For zero tax companies that have accounts prepared according to the Companies Act, MAT is levied on them.</li></ol></li><li class="pt-1 pb-1"><strong>Capital Gains Tax:聽</strong>It is a form of direct tax that is paid due to the income that is earned from the sale of assets or investments. Investments in farms, bonds, shares, businesses, art, and home come under capital assets. Based on its holding period, tax can be classified into long-term and short-term. Any assets, apart from securities, that are sold within 36 months from the time they were acquired come under short-term gains. Long-term assets are levied if any income is generated from the sale of properties that have been held for a duration of more than 36 months.</li></ol></div><div><div class="flex flex-col gap-1"><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check FREE Credit Score">Check FREE Credit Score</a></div><h2 class="text-lg font-bold pt-5">Tax Rate for the Different Types of Direct Tax</h2><p class="text-base ">Income Tax:</p><p class="text-base ">Depending on the individual's age and salary, he/she will fall under a particular tax slab. The three different tax slabs are mentioned below:</p><p class="text-base "><strong>For resident individuals and Hindu Undivided Families (HUFs) who are below the age of 60 years:</strong></p><div class="relative w-full overflow-auto"><table class="w-full caption-bottom text-sm border"><thead class="[&_tr]:border-b font-bold"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Tax slab</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Income tax</p></td></tr></thead><tbody class="[&_tr:last-child]:border-0"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Up to Rs.2.5 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Nil</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.2,50,001 to Rs.5,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">5% of the total income that is more than Rs.2.5 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.5,00,001 to Rs.10,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Income of above Rs.10 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 4% cess</p></td></tr></tbody></table></div><p class="text-base "><strong>For senior citizens who are above the age of 60 years and below the age of 80 years:</strong></p><div class="relative w-full overflow-auto"><table class="w-full caption-bottom text-sm border"><thead class="[&_tr]:border-b font-bold"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Tax slab</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Income tax</p></td></tr></thead><tbody class="[&_tr:last-child]:border-0"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Up to Rs.3 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Nil</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.3,00,001 to Rs.5,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">5% of the total income that is more than Rs.3 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.5,00,001 to Rs.10,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">20% of the total income that is more than Rs.5 lakh + Rs.10,500 + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Income of above Rs.10 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 4% cess</p></td></tr></tbody></table></div><p class="text-base "><strong>For resident Indians who are above the age of 80 years (Super Senior Citizen):</strong></p><div class="relative w-full overflow-auto"><table class="w-full caption-bottom text-sm border"><thead class="[&_tr]:border-b font-bold"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Tax slab</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Income tax</p></td></tr></thead><tbody class="[&_tr:last-child]:border-0"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Up to Rs.5 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Nil</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.5,00,001 to Rs.10,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">20% of the total income that is more than Rs.5 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Above Rs.10 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 4% cess</p></td></tr></tbody></table></div><p class="text-base ">In addition to the existing tax slabs mentioned above, the Finance Minister Nirmala Sitharaman has introduced a <a href="/tax/income-tax-slabs.html" target="_blank">new tax regime </a>on 1st February 2020. However, it should be kept in mind that the new income tax regime is optional and is an alternative for the existing income tax regime. The income tax slabs for the FY 2020-21 under the new regime can be summed up as follows:</p><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check FREE Credit Score">Check FREE Credit Score</a></div><div data-inline-ad-position="HUNGRY_FOR_MORE"></div><h2 class="text-lg font-bold pt-5">New Income Tax Slab for Individuals</h2><div class="relative w-full overflow-auto"><table class="w-full caption-bottom text-sm border"><thead class="[&_tr]:border-b font-bold"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Income Tax Slab</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l bg-secondary hover:bg-secondary text-white p-2" colSpan="1"><p class="text-base ">Tax Rate</p></td></tr></thead><tbody class="[&_tr:last-child]:border-0"><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Up to Rs.2.5 lakh</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Nil</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.2,50,001 to Rs.5,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">5% of the total income that is more than Rs.2.5 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.5,00,001 to Rs.7,50,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">10% of the total income that is more than Rs.5 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.7,50,001 to Rs.10,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">15% of the total income that is more than Rs.7.5 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.10,00,001 to Rs.12,50,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">20% of the total income that is more than Rs.10 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">From Rs.12,50,001 to Rs.15,00,000</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">25% of the total income that is more than Rs.12.5 lakh + 4% cess</p></td></tr><tr class="border-b transition-colors data-[state=selected]:bg-slate-100 dark:hover:bg-slate-800/50 dark:data-[state=selected]:bg-slate-800 hover:bg-inherit even:bg-gray-100 hover:even:bg-gray-100"><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">Income above Rs.15,00,001</p></td><td class="align-middle [&:has([role=checkbox])]:pr-0 border-l p-2" colSpan="1" rowSpan="1"><p class="text-base ">30% of the total income that is more than Rs.15 lakh + 4% cess</p></td></tr></tbody></table></div><p class="text-base "><strong>Note:</strong> The income tax rates mentioned above are optional.</p><p class="text-base ">Corporate Tax:</p><p class="text-base ">The tax rates for domestic and international companies are mentioned below:</p><p class="text-base "><strong>Domestic companies:</strong></p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">In case the turnover of the company is less than Rs.250 crore, the corporate tax that is levied is 25%. However, if the turnover of the company is more Rs.250 crore, the corporate tax that is levied is 30%.</li><li class="pt-1 pb-1">A surcharge of 10% of the taxable income is levied in case the taxable income is between Rs.1 crore and Rs.10 crore.</li><li class="pt-1 pb-1">In case the <a href="/tax/taxable-income.html" target="_blank">taxable income</a> of the company is more than Rs.10 crore, the surcharge that is levied is 12%.</li><li class="pt-1 pb-1">4% of the corporate tax is levied as cess.</li></ol><p class="text-base "><strong>International companies:</strong></p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">In case companies are earning less than Rs.1 crore, a corporate tax of 41.2% is levied. The corporate tax includes 40% basic tax and 3% education cess.</li><li class="pt-1 pb-1">In case companies are earning more than Rs.1 crore, a corporate tax of 42.024% is levied. The corporate tax includes 40% basic tax, 2% surcharge, and 3% education cess.</li><li class="pt-1 pb-1">In case companies earn more than Rs.10 crore, a surcharge of 5% is levied apart from the basic tax.</li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Capital Gains Tax</strong></li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">According to the normal tax slabs, <a href="/tax/short-term-capital-gain.html" target="_blank">short-term capital gains</a> is levied.</li><li class="pt-1 pb-1">In case Capital Gains Tax is computed considering indexation benefit, the <a href="/tax/long-term-capital-gains.html" target="_blank">long-term capital gains</a> that are levied are taxed as 20%.</li><li class="pt-1 pb-1">In case Capital Gains Tax is computed without considering indexation benefit, the long-term capital gains that are levied are taxed at 10%</li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Wealth Tax</strong></li></ol><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1">Depending on the net wealth, Wealth Tax is levied. Net wealth can be calculated by the sum of all taxable assets minus the total debt that is owed.</li><li class="pt-1 pb-1">The formula for net wealth is, Net Wealth = (Sum of all assets) - (sum of all debt).</li><li class="pt-1 pb-1">The value of net wealth is considered on March 31 of every year that immediately precedes the assessment year.</li><li class="pt-1 pb-1">However, with effect from 1 April 2016, for wealth that was being held as of 31 March 2016, Wealth Tax has been abolished.</li></ol><h2 class="text-lg font-bold pt-5">Direct Tax Code</h2><p class="text-base ">The Direct Tax Code or DTC was mainly drafted to replace the <a href="/tax/income-tax-act.html" target="_blank">Income Tax Act</a> of 1961. The main aim of DTC is to establish a more equitable, effective, and efficient direct tax system. DTC was also drafted to amend and stabilise all laws that are related to direct taxes so that the tax-GDP ratio increases and voluntary compliance becomes easy.</p><h2 class="text-lg font-bold pt-5">Explanation of the Direct Tax Codes</h2><p class="text-base ">The key features of the Direct Tax Code are explained below:</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>All direct taxes have a single code:</strong> By bringing all direct taxes under one code, a single, unified taxpayer system can be brought into effect. All compliance features can also be unified under one code.</li><li class="pt-1 pb-1"><strong>Stability:</strong> Currently, based on the Finance Act of the relevant year, taxes are formed. However, under the Direct Tax Code, the tax rates are being made between the First and Fourth schedule of the DTC. Any changes to the schedule can be made by passing an Amendment Bill before the Parliament.</li><li class="pt-1 pb-1"><strong>Regulatory Functions are eliminated:</strong> Other regulatory authorities must handle all regulatory functions.</li><li class="pt-1 pb-1"><strong>Political contributions:</strong> 5% of the gross total income that can be deducted will be made towards political contributions.</li><li class="pt-1 pb-1"><strong>Flexibility:</strong> A law has been created so that changes and requirement to grow the economy can be accommodated without having to make amendments on a constant basis.</li><li class="pt-1 pb-1"><strong>Constant litigation problems have been eliminated:</strong> Special care has been put forth so that the code is not misused or misinterpreted in order to avoid contradiction and ambiguity.</li><li class="pt-1 pb-1"><strong>Fringe benefits tax:</strong> The tax is levied on employees rather than employers.</li></ol><div class="text-center mt-4 mb-4"><a href="https://www.bankbazaar.com/credit-score.html?variant=slide&WT.mc_id=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13252&utm_source=bb&utm_medium=seo&utm_campaign=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13252" class="inline-flex items-center justify-center whitespace-nowrap rounded-md text-sm ring-offset-white transition-colors focus-visible:outline-none focus-visible:ring-slate-950 focus-visible:ring-offset-2 disabled:pointer-events-none disabled:opacity-50 dark:ring-offset-slate-950 dark:focus-visible:ring-slate-300 dark:bg-slate-50 dark:text-slate-900 dark:hover:bg-slate-50/90 px-4 py-2 minW-auto no-underline h-auto text-wrap font-medium focus-visible:ring-0 bg-destructive text-destructive-foreground hover:bg-destructive-300" title="Check FREE Credit Score">Check FREE Credit Score</a></div><div class="mb-2.5 py-1"><div class="grid grid-cols-12 gap-2.5"><div class=" lg:col-span-12 md:col-span-12 col-span-12"><div class="border bg-transparent hover:bg-transparent"><details name="accordion" class="px-2.5 py-2.5"><summary class="cursor-pointer block relative"><strong>Related Articles on Tax<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5"><ol class="list-disc list-outside ml-4 mr-4 columns-3"><li class=""><a href="/income-tax.html" title="Income Tax" target="_black">Income Tax</a></li><li class=""><a href="/tax/income-tax-act.html" title="Income Tax Act" target="_black">Income Tax Act</a></li><li class=""><a href="/tax/income-tax-slabs.html" title="Income Tax Slabs" target="_black">Income Tax Slabs</a></li><li class=""><a href="/tax/efiling-income-tax.html" title="Efiling Income Tax" target="_black">Efiling Income Tax</a></li><li class=""><a href="/tax/income-tax-return.html" title="Income Tax Return" target="_black">Income Tax Return</a></li><li class=""><a href="/tax/tds-online-payment.html" title="TDS Online Payment" target="_black">TDS Online Payment</a></li><li class=""><a href="/tax/income-tax-refund.html" title="Income Tax Refund" target="_black">Income Tax Refund</a></li><li class=""><a href="/tax/step-by-step-guide-efile-income-tax-return-online.html" title="Steps to efiling ITR online" target="_black">Steps to efiling ITR online</a></li><li class=""><a href="/tax/gratuity.html" title="Gratuity" target="_black">Gratuity</a></li><li class=""><a href="/tax/how-calculate-hra-from-basic-salary.html" title="How to Calculate HRA" target="_black">How to Calculate HRA</a></li><li class=""><a href="/tax/gst.html" title="GST" target="_black">GST</a></li><li class=""><a href="/tax/gst-returns.html" title="GST Returns" target="_black">GST Returns</a></li><li class=""><a href="/tax/7th-pay-commission.html" title="7th Pay Commission" target="_black">7th Pay Commission</a></li><li class=""><a href="/tax/all-about-tds.html" title="TDS" target="_black">TDS</a></li><li class=""><a href="/tax/form-16.html" title="Form 16" target="_black">Form 16</a></li></ol></div></details></div></div></div></div><div data-inline-ad-position="HUNGRY_FOR_MORE"></div><h2 class="text-lg font-bold pt-5">Advantages of Direct Taxes</h2><p class="text-base ">The main advantages of Direct Taxes in India are mentioned below:</p><ol class="list-disc list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>Economic and Social balance:</strong> The Government of India has launched well-balanced <a href="/tax/income-tax-slabs.html" target="_blank">tax slabs</a> depending on an individual's earnings and age. The tax slabs are also determined based on the economic situation of the country. Exemptions are also put in place so that all income inequalities are balanced out.</li><li class="pt-1 pb-1"><strong>Productivity:</strong> As there is a growth in the number of people who work and community, the returns from direct taxes also increases. Therefore, direct taxes are considered to be very productive.</li><li class="pt-1 pb-1"><strong>Inflation is curbed:</strong> Tax is increased by the government during inflation. The increase in taxes reduces the necessity for goods and services, which leads to inflation to compress.</li><li class="pt-1 pb-1"><strong>Certainty:</strong> Due to the presence of direct taxes, there is a sense of certainty from the government and the taxpayer. The amount that must be paid and the amount that must be collected is known by the taxpayer and the government, respectively.</li><li class="pt-1 pb-1"><strong>Distribution of wealth is equal:</strong> Higher taxes are charged by the government to the individuals or organisations that can afford them. This extra money is used to help the poor and lower societies in India.</li></ol><p class="text-base ">Even though there are a few disadvantages, direct taxes play a very important role in India's economy. If these taxes are brought into effect appropriately, they could play a huge role in sustaining price levels and to prevent inflation.</p></div><h2 class="text-lg font-bold pt-4">FAQs on Direct Tax</h2><ul class="list-decimal list-outside ml-4 mr-4 "><li class="pt-1 pb-1"><strong>How can I save on my taxes?</strong><p class="text-base ">It is possible to have a portion of your income viewed as or deemed non-taxable - by investing it in certain funds, investments and policies which are income tax deductible.</p></li><li class="pt-1 pb-1"><strong>What are some of the investments that I can make to save on Income Tax?</strong><p class="text-base ">Investments under Section 80C, 80CCC and 80D are directly exempt from taxation - like some tax saving fixed deposits, investments in National Savings Certificates (NSCs), insurance policies, EPF and PPF schemes, etc.</p></li><li class="pt-1 pb-1"><strong>What is TDS?</strong><p class="text-base "><a href="/tax/all-about-tds.html" target="_blank">TDS</a> is Tax Deducted at Source. Before you receive your pay, a certain amount is deducted as tax through the method of TDS.</p></li><li class="pt-1 pb-1"><strong>What is an assessment year?</strong><p class="text-base ">An assessment year is a 12 month period that starts on the 1st of April, up to the 31st of March the next year.</p></li><li class="pt-1 pb-1"><strong>Are all incomes and receipts considered as taxable income?</strong><p class="text-base ">No, there are two types of receipts - 1. Revenue receipts and 2. Capital receipts. All revenue receipts are taxable unless specifically exempted and all capital receipts are exempted unless specifically taxed.</p></li><li class="pt-1 pb-1"><strong>What is the disadvantage of Direct taxes?</strong><p class="text-base ">The disadvantage of Direct taxes is that the process of filing income tax return itself is more time consuming.</p></li></ul><script type="application/ld+json" data-testid="faq-json-ld">{"@context":"https://schema.org","@type":"FAQPage","mainEntity":[{"@type":"Question","name":"How can I save on my taxes?","acceptedAnswer":{"@type":"Answer","text":"It is possible to have a portion of your income viewed as or deemed non-taxable - by investing it in certain funds, investments and policies which are income tax deductible."}},{"@type":"Question","name":"What are some of the investments that I can make to save on Income Tax?","acceptedAnswer":{"@type":"Answer","text":"Investments under Section 80C, 80CCC and 80D are directly exempt from taxation - like some tax saving fixed deposits, investments in National Savings Certificates (NSCs), insurance policies, EPF and PPF schemes, etc."}},{"@type":"Question","name":"What is TDS?","acceptedAnswer":{"@type":"Answer","text":"<a href=\"/tax/all-about-tds.html\" target=\"_blank\">TDS</a> is Tax Deducted at Source. Before you receive your pay, a certain amount is deducted as tax through the method of TDS."}},{"@type":"Question","name":"What is an assessment year?","acceptedAnswer":{"@type":"Answer","text":"An assessment year is a 12 month period that starts on the 1st of April, up to the 31st of March the next year."}},{"@type":"Question","name":"Are all incomes and receipts considered as taxable income?","acceptedAnswer":{"@type":"Answer","text":"No, there are two types of receipts - 1. Revenue receipts and 2. Capital receipts. All revenue receipts are taxable unless specifically exempted and all capital receipts are exempted unless specifically taxed."}},{"@type":"Question","name":"What is the disadvantage of Direct taxes?","acceptedAnswer":{"@type":"Answer","text":"The disadvantage of Direct taxes is that the process of filing income tax return itself is more time consuming."}}]}</script><h2 class="text-lg font-bold pt-2 pb-2">News About Direct Tax</h2><div class="flex flex-col gap-2.5"><div class="mb-xl"><div class="rounded-lg border border-slate-200 bg-white text-slate-950 shadow-sm dark:border-slate-800 dark:bg-slate-950 dark:text-slate-50 relative"><div class="flex flex-col space-y-1.5 p-4 bg-secondary text-secondary-foreground"><h3 class="font-semibold tracking-tight text-md text-bold">Interim Union Budget 2024: Outstanding tax demands to be withdrawn</h3></div><div class="p-2.5"><p class="text-base ">As per a proposal made by the Finance Minister Nirmala Sitharaman in the Interim Union Budget 2024, outstanding direct tax demands up to Rs.10,000 between 2010 and 2015 and up to Rs.25,000 crore up to 2009-2010 will be withdrawn. The Finance Minister further added that this move will benefit 1 crore taxpayers.</p><div class="text-end px-2.5 py-1">1 February 2024</div></div></div></div></div><script type="application/ld+json" data-testid="organization-json-ld">{"@context":"http://schema.org","@type":"Organization","name":"BankBazaar","url":"https://www.bankbazaar.com/","logo":"https://static.bankbazaar.com/images/bankbazaar-logo.png","sameAs":["https://www.facebook.com/bankbazaar/","https://twitter.com/bankbazaar","https://www.instagram.com/bankbazaar/","https://www.linkedin.com/company/417362/","https://www.youtube.com/@BankBazaar","https://in.linkedin.com/company/bank_bazaar"]}</script></div></div></div></div></div><div class="py-5"><div class="border bg-transparent hover:bg-transparent"><details name="accordion" class="px-2.5 py-2.5"><summary class="cursor-pointer block relative"><strong>Disclaimer<!-- --> <span class="accordion-arrow absolute right-2.5"><svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-chevron-down"><path d="m6 9 6 6 6-6"></path></svg></span></strong></summary><div class="py-2.5">Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. 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Tax","otherLinks":[{"link":"/tax.html","text":"Tax"}]},"showTOC":true,"hideOfferTable":true,"news":{"items":[{"title":"Interim Union Budget 2024: Outstanding tax demands to be withdrawn","article":[{"type":"paragraph","data":{"text":"As per a proposal made by the Finance Minister Nirmala Sitharaman in the Interim Union Budget 2024, outstanding direct tax demands up to Rs.10,000 between 2010 and 2015 and up to Rs.25,000 crore up to 2009-2010 will be withdrawn. The Finance Minister further added that this move will benefit 1 crore taxpayers."}}],"updatedOn":"2024-02-01"}],"title":"News About Direct Tax"},"faqs":{"items":[{"answer":[{"data":{"text":"It is possible to have a portion of your income viewed as or deemed non-taxable - by investing it in certain funds, investments and policies which are income tax deductible."},"type":"paragraph"}],"question":"How can I save on my taxes?"},{"answer":[{"data":{"text":"Investments under Section 80C, 80CCC and 80D are directly exempt from taxation - like some tax saving fixed deposits, investments in National Savings Certificates (NSCs), insurance policies, EPF and PPF schemes, etc."},"type":"paragraph"}],"question":"What are some of the investments that I can make to save on Income Tax?"},{"answer":[{"data":{"text":"\u003ca href=\"/tax/all-about-tds.html\" target=\"_blank\"\u003eTDS\u003c/a\u003e is Tax Deducted at Source. Before you receive your pay, a certain amount is deducted as tax through the method of TDS."},"type":"paragraph"}],"question":"What is TDS?"},{"answer":[{"data":{"text":"An assessment year is a 12 month period that starts on the 1st of April, up to the 31st of March the next year."},"type":"paragraph"}],"question":"What is an assessment year?"},{"answer":[{"data":{"text":"No, there are two types of receipts - 1. Revenue receipts and 2. Capital receipts. All revenue receipts are taxable unless specifically exempted and all capital receipts are exempted unless specifically taxed."},"type":"paragraph"}],"question":"Are all incomes and receipts considered as taxable income?"},{"answer":[{"data":{"text":"The disadvantage of Direct taxes is that the process of filing income tax return itself is more time consuming."},"type":"paragraph"}],"question":"What is the disadvantage of Direct taxes?"}],"title":"FAQs on Direct Tax"},"hungryForMore":[{"type":"paragraph","data":{"text":"The \u003ca href=\"/tax.html\" target=\"_blank\"\u003etax \u003c/a\u003eis paid directly by the organisation or an individual to the entity that has imposed the payment. The tax must be paid directly to the government and cannot be paid to anyone else."}},{"type":"cta","data":{"linkText":"Check FREE Credit Score","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252"}},{"type":"header","data":{"text":"Types of Direct Taxes","level":2}},{"type":"paragraph","data":{"text":"The various types of direct tax that are imposed in India are mentioned below:"}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eIncome Tax:\u0026nbsp;\u003c/strong\u003eDepending on an individual's age and earnings, \u003ca href=\"/income-tax.html\" target=\"_blank\"\u003eincome tax\u003c/a\u003e must be paid. Various tax slabs are determined by the Government of India which determines the amount of Income Tax that must be paid. The taxpayer must file \u003ca href=\"/tax/income-tax-return.html\" target=\"_blank\"\u003eIncome Tax Returns \u003c/a\u003e(ITR) on a yearly basis. Individuals may receive a refund or might have to pay a tax depending on their ITR. Huge penalties are levied in case individuals do not \u003ca href=\"/tax/efiling-income-tax.html\" target=\"_blank\"\u003efile ITR\u003c/a\u003e.","items":[]},{"content":"\u003cstrong\u003eWealth Tax:\u0026nbsp;\u003c/strong\u003eThe tax must be paid on a yearly basis and depends on the ownership of properties and the market value of the property. In case an individual owns a property, wealth tax must be paid and does not depend on whether the property generates an income or not. Corporate taxpayers, Hindu Undivided Families (HUFs), and individuals must pay wealth tax depending on their residential status. Payment of wealth tax is exempt for assets like gold deposit bonds, stock holdings, \u003ca href=\"/tax/tax-on-income-from-house-property.html\" target=\"_blank\"\u003ehouse property\u003c/a\u003e, commercial property that have been rented for more than 300 days, and if the house property is owned for business and professional use.","items":[]},{"content":"\u003cstrong\u003eEstate Tax:\u0026nbsp;\u003c/strong\u003eIt is also called as Inheritance Tax and is paid based on the value of the estate or the money that an individual has left after his/her death.","items":[]},{"content":"\u003cstrong\u003eCorporate Tax:\u0026nbsp;\u003c/strong\u003eDomestic companies, apart from shareholders, will have to pay corporate tax. Foreign corporations who make an income in India will also have to pay corporate tax. Income earned via selling assets, technical service fees, dividends, royalties, or interest that is based in India are taxable. The below-mentioned taxes are also included under Corporate Tax:","items":[{"content":"\u003cstrong\u003eSecurities Transaction Tax (STT):\u0026nbsp;\u003c/strong\u003eThe tax must be paid for any income that is earned via security transactions that are taxable.","items":[]},{"content":"\u003cstrong\u003eDividend Distribution Tax (DDT):\u0026nbsp;\u003c/strong\u003eIn case any domestic companies declare, distribute, or are paid any amounts as dividends by shareholders, DDT is levied on them. However, DDT is not levied on foreign companies.","items":[]},{"content":"\u003cstrong\u003eFringe Benefits Tax:\u0026nbsp;\u003c/strong\u003eCompanies that provide fringe benefits for maids, drivers, etc., Fringe Benefits Tax is levied on them.","items":[]},{"content":"\u003cstrong\u003eMinimum Alternate Tax (MAT):\u0026nbsp;\u003c/strong\u003eFor zero tax companies that have accounts prepared according to the Companies Act, MAT is levied on them.","items":[]}]},{"content":"\u003cstrong\u003eCapital Gains Tax:\u0026nbsp;\u003c/strong\u003eIt is a form of direct tax that is paid due to the income that is earned from the sale of assets or investments. Investments in farms, bonds, shares, businesses, art, and home come under capital assets. Based on its holding period, tax can be classified into long-term and short-term. Any assets, apart from securities, that are sold within 36 months from the time they were acquired come under short-term gains. Long-term assets are levied if any income is generated from the sale of properties that have been held for a duration of more than 36 months.","items":[]}]}},{"type":"cta","data":{"linkText":"Check FREE Credit Score","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252"}},{"type":"header","data":{"text":"Tax Rate for the Different Types of Direct Tax","level":2}},{"type":"paragraph","data":{"text":"Income Tax:"}},{"type":"paragraph","data":{"text":" Depending on the individual's age and salary, he/she will fall under a particular tax slab. The three different tax slabs are mentioned below:"}},{"type":"paragraph","data":{"text":"\u003cstrong\u003eFor resident individuals and Hindu Undivided Families (HUFs) who are below the age of 60 years:\u003c/strong\u003e"}},{"type":"table","data":{"rows":[{"cols":[{"content":[{"data":{"text":"Tax slab"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true},{"content":[{"data":{"text":"Income tax"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true}]},{"cols":[{"content":[{"data":{"text":"Up to Rs.2.5 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Nil"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.2,50,001 to Rs.5,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"5% of the total income that is more than Rs.2.5 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.5,00,001 to Rs.10,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"Income of above Rs.10 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]}]}},{"type":"paragraph","data":{"text":"\u003cstrong\u003eFor senior citizens who are above the age of 60 years and below the age of 80 years:\u003c/strong\u003e"}},{"type":"table","data":{"rows":[{"cols":[{"content":[{"data":{"text":"Tax slab"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true},{"content":[{"data":{"text":"Income tax"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true}]},{"cols":[{"content":[{"data":{"text":"Up to Rs.3 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Nil"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.3,00,001 to Rs.5,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"5% of the total income that is more than Rs.3 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.5,00,001 to Rs.10,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"20% of the total income that is more than Rs.5 lakh + Rs.10,500 + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"Income of above Rs.10 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]}]}},{"type":"paragraph","data":{"text":"\u003cstrong\u003eFor resident Indians who are above the age of 80 years (Super Senior Citizen):\u003c/strong\u003e"}},{"type":"table","data":{"rows":[{"cols":[{"content":[{"data":{"text":"Tax slab"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true},{"content":[{"data":{"text":"Income tax"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true}]},{"cols":[{"content":[{"data":{"text":"Up to Rs.5 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Nil"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.5,00,001 to Rs.10,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"20% of the total income that is more than Rs.5 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"Above Rs.10 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]}]}},{"type":"paragraph","data":{"text":"In addition to the existing tax slabs mentioned above, the Finance Minister Nirmala Sitharaman has introduced a \u003ca href=\"/tax/income-tax-slabs.html\" target=\"_blank\"\u003enew tax regime \u003c/a\u003eon 1st February 2020. However, it should be kept in mind that the new income tax regime is optional and is an alternative for the existing income tax regime. The income tax slabs for the FY 2020-21 under the new regime can be summed up as follows:"}},{"type":"cta","data":{"linkText":"Check FREE Credit Score","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_BUTTON_13252"}},{"type":"header","data":{"text":"New Income Tax Slab for Individuals","level":2}},{"type":"table","data":{"rows":[{"cols":[{"content":[{"data":{"text":"Income Tax Slab"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true},{"content":[{"data":{"text":"Tax Rate"},"type":"paragraph"}],"colspan":1,"rowspan":1,"highlight":true}]},{"cols":[{"content":[{"data":{"text":"Up to Rs.2.5 lakh"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"Nil"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.2,50,001 to Rs.5,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"5% of the total income that is more than Rs.2.5 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.5,00,001 to Rs.7,50,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"10% of the total income that is more than Rs.5 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.7,50,001 to Rs.10,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"15% of the total income that is more than Rs.7.5 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.10,00,001 to Rs.12,50,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"20% of the total income that is more than Rs.10 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"From Rs.12,50,001 to Rs.15,00,000"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"25% of the total income that is more than Rs.12.5 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]},{"cols":[{"content":[{"data":{"text":"Income above Rs.15,00,001"},"type":"paragraph"}],"colspan":1,"rowspan":1},{"content":[{"data":{"text":"30% of the total income that is more than Rs.15 lakh + 4% cess"},"type":"paragraph"}],"colspan":1,"rowspan":1}]}]}},{"type":"paragraph","data":{"text":"\u003cstrong\u003eNote:\u003c/strong\u003e The income tax rates mentioned above are optional."}},{"type":"paragraph","data":{"text":"Corporate Tax:"}},{"type":"paragraph","data":{"text":" The tax rates for domestic and international companies are mentioned below:"}},{"type":"paragraph","data":{"text":"\u003cstrong\u003eDomestic companies:\u003c/strong\u003e"}},{"type":"list","data":{"style":"unordered","items":[{"content":"In case the turnover of the company is less than Rs.250 crore, the corporate tax that is levied is 25%. However, if the turnover of the company is more Rs.250 crore, the corporate tax that is levied is 30%.","items":[]},{"content":"A surcharge of 10% of the taxable income is levied in case the taxable income is between Rs.1 crore and Rs.10 crore.","items":[]},{"content":"In case the \u003ca href=\"/tax/taxable-income.html\" target=\"_blank\"\u003etaxable income\u003c/a\u003e of the company is more than Rs.10 crore, the surcharge that is levied is 12%.","items":[]},{"content":"4% of the corporate tax is levied as cess.","items":[]}]}},{"type":"paragraph","data":{"text":"\u003cstrong\u003eInternational companies:\u003c/strong\u003e"}},{"type":"list","data":{"style":"unordered","items":[{"content":"In case companies are earning less than Rs.1 crore, a corporate tax of 41.2% is levied. The corporate tax includes 40% basic tax and 3% education cess.","items":[]},{"content":"In case companies are earning more than Rs.1 crore, a corporate tax of 42.024% is levied. The corporate tax includes 40% basic tax, 2% surcharge, and 3% education cess.","items":[]},{"content":"In case companies earn more than Rs.10 crore, a surcharge of 5% is levied apart from the basic tax.","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eCapital Gains Tax\u003c/strong\u003e","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"According to the normal tax slabs, \u003ca href=\"/tax/short-term-capital-gain.html\" target=\"_blank\"\u003eshort-term capital gains\u003c/a\u003e is levied.","items":[]},{"content":"In case Capital Gains Tax is computed considering indexation benefit, the \u003ca href=\"/tax/long-term-capital-gains.html\" target=\"_blank\"\u003elong-term capital gains\u003c/a\u003e that are levied are taxed as 20%.","items":[]},{"content":"In case Capital Gains Tax is computed without considering indexation benefit, the long-term capital gains that are levied are taxed at 10%","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eWealth Tax\u003c/strong\u003e","items":[]}]}},{"type":"list","data":{"style":"unordered","items":[{"content":"Depending on the net wealth, Wealth Tax is levied. Net wealth can be calculated by the sum of all taxable assets minus the total debt that is owed.","items":[]},{"content":"The formula for net wealth is, Net Wealth = (Sum of all assets) - (sum of all debt).","items":[]},{"content":"The value of net wealth is considered on March 31 of every year that immediately precedes the assessment year.","items":[]},{"content":"However, with effect from 1 April 2016, for wealth that was being held as of 31 March 2016, Wealth Tax has been abolished.","items":[]}]}},{"type":"header","data":{"text":"Direct Tax Code","level":2}},{"type":"paragraph","data":{"text":"The Direct Tax Code or DTC was mainly drafted to replace the \u003ca href=\"/tax/income-tax-act.html\" target=\"_blank\"\u003eIncome Tax Act\u003c/a\u003e of 1961. The main aim of DTC is to establish a more equitable, effective, and efficient direct tax system. DTC was also drafted to amend and stabilise all laws that are related to direct taxes so that the tax-GDP ratio increases and voluntary compliance becomes easy."}},{"type":"header","data":{"text":"Explanation of the Direct Tax Codes","level":2}},{"type":"paragraph","data":{"text":"The key features of the Direct Tax Code are explained below:"}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eAll direct taxes have a single code:\u003c/strong\u003e By bringing all direct taxes under one code, a single, unified taxpayer system can be brought into effect. All compliance features can also be unified under one code.","items":[]},{"content":"\u003cstrong\u003eStability:\u003c/strong\u003e Currently, based on the Finance Act of the relevant year, taxes are formed. However, under the Direct Tax Code, the tax rates are being made between the First and Fourth schedule of the DTC. Any changes to the schedule can be made by passing an Amendment Bill before the Parliament.","items":[]},{"content":"\u003cstrong\u003eRegulatory Functions are eliminated:\u003c/strong\u003e Other regulatory authorities must handle all regulatory functions.","items":[]},{"content":"\u003cstrong\u003ePolitical contributions:\u003c/strong\u003e 5% of the gross total income that can be deducted will be made towards political contributions.","items":[]},{"content":"\u003cstrong\u003eFlexibility:\u003c/strong\u003e A law has been created so that changes and requirement to grow the economy can be accommodated without having to make amendments on a constant basis.","items":[]},{"content":"\u003cstrong\u003eConstant litigation problems have been eliminated:\u003c/strong\u003e Special care has been put forth so that the code is not misused or misinterpreted in order to avoid contradiction and ambiguity.","items":[]},{"content":"\u003cstrong\u003eFringe benefits tax:\u003c/strong\u003e The tax is levied on employees rather than employers.","items":[]}]}},{"type":"cta","data":{"linkText":"Check FREE Credit Score","link":"https://www.bankbazaar.com/credit-score.html?variant=slide\u0026WT.mc_id=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13252\u0026utm_source=bb\u0026utm_medium=seo\u0026utm_campaign=CROSS_SELL_IL_INCOME_TAX_FAQ_BUTTON_13252"}},{"type":"references","data":{"items":[{"items":[{"text":"Income Tax","link":"/income-tax.html"},{"text":"Income Tax Act","link":"/tax/income-tax-act.html"},{"text":"Income Tax Slabs","link":"/tax/income-tax-slabs.html"},{"text":"Efiling Income Tax","link":"/tax/efiling-income-tax.html"},{"text":"Income Tax Return","link":"/tax/income-tax-return.html"},{"text":"TDS Online Payment","link":"/tax/tds-online-payment.html"},{"text":"Income Tax Refund","link":"/tax/income-tax-refund.html"},{"text":"Steps to efiling ITR online","link":"/tax/step-by-step-guide-efile-income-tax-return-online.html"},{"text":"Gratuity","link":"/tax/gratuity.html"},{"text":"How to Calculate HRA","link":"/tax/how-calculate-hra-from-basic-salary.html"},{"text":"GST","link":"/tax/gst.html"},{"text":"GST Returns","link":"/tax/gst-returns.html"},{"text":"7th Pay Commission","link":"/tax/7th-pay-commission.html"},{"text":"TDS","link":"/tax/all-about-tds.html"},{"text":"Form 16","link":"/tax/form-16.html"}],"title":"Related Articles on Tax"}]}},{"type":"header","data":{"text":"Advantages of Direct Taxes","level":2}},{"type":"paragraph","data":{"text":"The main advantages of Direct Taxes in India are mentioned below:"}},{"type":"list","data":{"style":"unordered","items":[{"content":"\u003cstrong\u003eEconomic and Social balance:\u003c/strong\u003e The Government of India has launched well-balanced \u003ca href=\"/tax/income-tax-slabs.html\" target=\"_blank\"\u003etax slabs\u003c/a\u003e depending on an individual's earnings and age. The tax slabs are also determined based on the economic situation of the country. Exemptions are also put in place so that all income inequalities are balanced out.","items":[]},{"content":"\u003cstrong\u003eProductivity:\u003c/strong\u003e As there is a growth in the number of people who work and community, the returns from direct taxes also increases. Therefore, direct taxes are considered to be very productive.","items":[]},{"content":"\u003cstrong\u003eInflation is curbed:\u003c/strong\u003e Tax is increased by the government during inflation. The increase in taxes reduces the necessity for goods and services, which leads to inflation to compress.","items":[]},{"content":"\u003cstrong\u003eCertainty:\u003c/strong\u003e Due to the presence of direct taxes, there is a sense of certainty from the government and the taxpayer. The amount that must be paid and the amount that must be collected is known by the taxpayer and the government, respectively.","items":[]},{"content":"\u003cstrong\u003eDistribution of wealth is equal:\u003c/strong\u003e Higher taxes are charged by the government to the individuals or organisations that can afford them. This extra money is used to help the poor and lower societies in India.","items":[]}]}},{"type":"paragraph","data":{"text":"Even though there are a few disadvantages, direct taxes play a very important role in India's economy. If these taxes are brought into effect appropriately, they could play a huge role in sustaining price levels and to prevent inflation."}}],"hideUserReviews":true,"hideEligForm":true,"metaDescription":"Know what is Direct taxes in India and Check Direct Tax Code Explanation, Types, Advantages \u0026 various Tax Rates for different types.","h1Title":"Direct Tax - Meaning, Types \u0026 Tax Rates","metaTitle":"What is Direct Tax? - Direct Tax Types, Rates \u0026 Advantages","metaKeyword":"direct tax, direct tax types, direct tax code","topContent":[{"type":"paragraph","data":{"text":"A type of tax where the impact and the incidence fall under the same category can be defined as a Direct Tax."}}],"interLinks":{"asLeftNav":true,"items":[{"title":"Articles Related to Tax","items":[{"text":"Income Tax","link":"/income-tax.html"},{"text":"Income Tax Slabs","link":"/tax/income-tax-slabs.html"},{"text":"Income Tax Calculator","link":"/tax/income-tax-calculator.html"},{"text":"Dearness Allowance","link":"/tax/dearness-allowance.html"},{"text":"Gratuity","link":"/tax/gratuity.html"},{"text":"GST","link":"/tax/gst.html"},{"text":"GST Rates","link":"/tax/gst-rates.html"},{"text":"7th Pay Matrix Table","link":"/tax/7th-pay-commission-pay-matrix-table.html"},{"text":"Form 16","link":"/tax/form-16.html"},{"text":"Form 26AS","link":"/tax/form-26as.html"},{"text":"Income Tax Refund Status","link":"/tax/income-tax-refund-status.html"},{"text":"7th Pay Commission","link":"/tax/7th-pay-commission.html"},{"text":"Tax","link":"/tax.html"},{"text":"Income Tax Return","link":"/tax/income-tax-return.html"},{"text":"efiling Income Tax","link":"/tax/efiling-income-tax.html"},{"text":"Which ITR to File","link":"/tax/which-itr-to-file.html"},{"text":"How to file ITR","link":"/tax/step-by-step-guide-efile-income-tax-return-online.html"},{"text":"HRA Calculation","link":"/tax/how-calculate-hra-from-basic-salary.html"},{"text":"Advance Tax","link":"/tax/advance-tax.html"},{"text":"Capital Gains Tax","link":"/tax/capital-gains-tax.html"},{"text":"Direct Tax","link":"/tax/direct-tax.html"},{"text":"Indirect Tax","link":"/tax/indirect-tax.html"},{"text":"Income Tax Refund","link":"/tax/income-tax-refund.html"},{"text":"GST Registration","link":"/tax/gst-registration.html"},{"text":"GST Types","link":"/tax/types-of-gst.html"},{"text":"4th, 5th, 6th, and 7th Pay Scale Chart","link":"/tax/4th-5th-6th-and-7th-cpc-pension-calculator.html"},{"text":"7th Pay Commission Leave Rules","link":"/tax/7th-cpc-leave-rules.html"},{"text":"Equivalent Ranks of Commissioned Officers in Army, Navy and Air Force","link":"/tax/equivalent-ranks-indian-armed-forces-army-air-force-navy.html"},{"text":"TDS Rates","link":"/tax/tds-rates-for-ay-2015-2016.html"},{"text":"TDS on Salary","link":"/tax/how-calculate-tds-from-salary.html"},{"text":"TDS Return Due Date","link":"/tax/due-dates-for-efiling-tds-return.html"},{"text":"TDS Refund","link":"/tax/how-claim-tds-refund.html"},{"text":"Form 15G and 15H","link":"/tax/forms-15g-and-15h-to-save-tds.html"},{"text":"Section 143-1","link":"/tax/reason-for-getting-an-intimation-under-sec-143-1.html"},{"text":"Section 194J","link":"/tax/section-194j-tds-on-professional-technical-fee.html"},{"text":"Section 10","link":"/tax/special-allowance-under-section-10-for-salaried-employees.html"},{"text":"Section 80C","link":"/tax/deductions-under-80c.html"},{"text":"Section 80D","link":"/tax/section-80d.html"},{"text":"Section 80DDB","link":"/tax/section-80ddb.html"},{"text":"Section 80C to 80U","link":"/tax/income-tax-deductions-under-section-80c-to-80u.html"},{"text":"Property Tax","link":"/tax/property-tax.html"},{"text":"BBMP Property Tax","link":"/tax/bbmp-property-tax.html"},{"text":"MCD Property Tax","link":"/tax/mcd-property-tax.html"},{"text":"Road Tax","link":"/tax/road-tax.html"},{"text":"VAT","link":"/tax/value-added-tax.html"},{"text":"Union Budget","link":"/tax/union-budget.html"},{"text":"Entry Tax","link":"/tax/entry-tax.html"},{"text":"Professional Tax","link":"/tax/professional-tax.html"},{"text":"Service Tax","link":"/tax/service-tax.html"},{"text":"Sales Tax","link":"/sales-tax.html"},{"text":"Excise Duty","link":"/tax/excise-duty.html"},{"text":"Cost Inflation Index","link":"/tax/cost-inflation-index.html"}]}]},"updatedOn":"27 Nov 2024","ogImage":{"src":"https://static.bankbazaar.com/images/social-share/bb-social-share-v1.jpg"}},"contextData":{"namespace":"tax/direct-tax","productType":"ALL","categoryType":"INCOME_TAX","deviceType":"DESKTOP"}}},"actionData":null,"errors":null}};</script><script type="module" async="">import "/lp-assets/manifest-873d9e11.js"; import * as route0 from "/lp-assets/root-BVFAYSZq.js"; import * as route1 from "/lp-assets/route-faYSul94.js"; window.__remixRouteModules = {"root":route0,"routes/default/route":route1}; import("/lp-assets/entry.client-BgNBjbT3.js");</script><script id="_webengage_script_tag" type="text/javascript"> function initializeWebEngage() { ! 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