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Taxation

Taxes in India are levied by the Central Government and the state governments. Some minor taxes are also levied by the local authorities such as the Municipality.

The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Central and the State. An important restriction on this power is Article 265 of the Constitution which states that "No tax shall be levied or collected except by the authority of law". Therefore, each tax levied or collected has to be backed by an accompanying law, passed either by the Parliament or the State Legislature. In 2013-2014, the gross tax collection of the Centre amounted to $13.64 trillion (US$200 billion)

TDS RATE CHART FY 2015-16 AY 16-17    
Nature of Payment Made To ResidentsCutoff (Rs.)Company / Firm / Co-operative Society / Local AuthorityIndividual / HUFIf No / Invalid PAN
Section - Description Rate (%)  
192 - Salaries(note-10)-NAAvg rates20
192A-Premature withdrawal from EPF ( wef 01.06.2015)30000NA1034.608
193 - Interest on securities-101020
194 - Dividends2500101020
194A - Interest other than interest on securities - Others5000101020
194A - Banks(Time deposits)10000101020
194A - Banks (Recurring deposit)(01.06.15)10000101020
194A - Deposit in Co-op Banks(01.06.15)10000101020
194B - Winning from Lotteries10000303030

VAT(Value Added Tax)

A value-added tax (VAT) or goods and services tax (GST) is a popular way of implementing a consumption tax in Europe, Japan, and many other countries. All OECD countries except the United States have a value-added tax. It differs from the sales tax in that taxes are applied to the difference between the seller-purchased price and the resale price. This is accomplished by taking full tax on all sales, but refunding the tax difference to the sellers.

To Download VAT form click link below

VAT Form Download

Sales Tax

A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax.

To Download Sales Tax Forms click below Link

Sales Tax Forms

Understand the PAN (Permanent Account Number)

PAN is a 10 digit alpha numeric number, where the first 5 characters are letters, the next 4 numbers and the last one a letter again. These 10 characters can bedivided in five parts as can be seen below. The meaning of each number has been explained further.

  1. First three characters are alphabetic series running from AAA to ZZZ
  2. Fourth character of PAN represents the status of the PAN holder.
    • C — Company
    • P — Person
    • H — HUF(Hindu Undivided Family)
    • F — Firm
    • A — Association of Persons (AOP)
    • T — AOP (Trust)
    • B — Body of Individuals (BOI)
    • L — Local Authority
    • J — Artificial Juridical Person
    • G — Government
  3. Fifth character represents first character of the PAN holder’s last name/surname.
  4. Next four characters are sequential number running from 0001 to 9999.
  5. Last character in the PAN is an alphabetic check digit.

Nowadays, the DOI (Date of Issue) of PAN card is mentioned at the right (vertical) hand side of the photo on the PAN card. .........!!!


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