What does "Taxation" cover?

Taxation In India The government of every country need revenue to meet expenditure like development and maintenance of Infrastructure, Security of country,…

Who is this guide meant for?

Class 11 and Class 12 commerce students, and CA Foundation aspirants, studying Academic Subjects.

Can I test myself on "Taxation"?

Yes — this page includes a short interactive quiz so you can check your understanding straight away.

Taxation

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Quick Overview & Key Takeaways

Focus Topic:Taxation

Estimated Reading Time:3 mins

Taxation In India The government of every country need revenue to meet expenditure like development and maintenance of Infrastructure, Security of country,…
Syllabus-aligned study material with detailed definitions, formats, and practical examples.
Interactive check: Includes a custom practice quiz at the bottom of the article to self-evaluate knowledge.

Taxation In India

The portion of the income of the individual or company collected by the government is called the tax.

1. Direct Tax(Income Tax): -

(F/Y start from 01/04/Every year to 31/03/every year)

2. Indirect Tax(Goods and Services Tax): -

The Manufacturer shall collect the amount of tax(GST) on the sale of goods from the wholesalers/dealers and then at the end of the month, he shall pay this amount to the government.
The Wholesalers/dealers shall collect tax on the sale of goods from the retailer and then at the end of the month, he shall pay that balance amount of tax to the government.
The Retailer shall collect tax on the sale of goods from the consumer(end-user) and then at the end of the month, he also shall pay that balance amount of tax to the government.

Note: -

So, in all three steps government collect the tax from the consumer(end-user) indirectly.

Transactions	Sale Amount	Tax Collected	Tax Paid	Balance Tax Paid to Govt.
A sold goods to B (Wholesaler)	1,000	100	0	100
B sold goods to C (Retailer)	1,200	120	100	20
C sold goods to D (Consumer/Actual Taxpayer)	1,500	150	120	30
Total Amount of Tax indirectly collected from the taxpayer				150

Taxation

Quick Overview & Key Takeaways

Taxation In India

1. Direct Tax(Income Tax): -

2. Indirect Tax(Goods and Services Tax): -

So, in all three steps government collect the tax from the consumer(end-user) indirectly.

Sarbjit SinghB.Com and M.Com

❓ Frequently Asked Questions

What does "Taxation" cover?

Who is this guide meant for?

Can I test myself on "Taxation"?

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