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What is Direct Tax

Direct Tax

About Direct Tax

What is Direct Tax

As the name suggests, direct taxes are those that are levied directly on taxpayers — the income-tax, wealth tax, corporation tax, etc. In other words, it is a type of tax where the impact and the incidence fall under the same category.
 
Direct taxes in India are overseen by the Central Board of Direct Taxes (CBDT). It was formed as a result of Central Board of Revenue Act, 1924.
 
Some examples of direct tax:
 
Income tax: Income tax is paid by an individual based on his/her taxable income in a given financial year. Taxable income refers to total income minus applicable deductions and exemptions.

The Budget estimate of the government's income tax revenue for the year 2020-21 was Rs 6,25,000 crore. The revised estimates of income tax for the 2019-20 Budget came at Rs 5,47,000 crore, while the actuals for the 2018-19 Budget stood at Rs 4,61,487 crore.
 
Corporation tax: Corporation Tax is the money paid by companies and businesses on the income earned by them in a given financial year.
 
On September 2019, the central government announced a cut in the rate of corporation tax for domestic companies to 22 per cent from 30 per cent previously. This brought effective corporation tax rate, including all additional levies, to about 25.2 per cent, for companies that do not receive any incentives or exemptions.

The Budget estimate of the government's corporation tax revenue for the year 2020-21 was Rs 6,81,000 crore. The revised estimates of corporation tax for the 2019-20 Budget came at Rs 6,10,500 crore, while the actuals for the 2018-19 Budget stood at Rs 6,63,571 crore.

Read provisions relating to direct taxes

Provisions relating to direct taxes in Budget 2020-2021



 
 

Latest Updates on Direct Tax

Net direct tax collections grew 9.8% to Rs 4.62 trillion till mid-June

3 min read Last Updated :Jun 17 2024 | 11:43 PM IST
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Net direct tax collections rise 20% at Rs 18.9 trillion till March 17

2 min read Last Updated :Mar 19 2024 | 11:19 PM IST
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Direct tax collection grows 20% to Rs 18.90 trillion till March 17

2 min read Last Updated :Mar 19 2024 | 8:36 PM IST
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Budget 2024: Here's what FM Nirmala Sitharaman said about income tax

3 min read Last Updated :Feb 01 2024 | 1:23 PM IST
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Direct tax to GDP ratio in FY24 likely to be the highest since FY01

4 min read Last Updated :Jan 30 2024 | 11:09 PM IST
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Budget 2024: Govt may raise exemption in lower bracket under old I-T regime

4 min read Last Updated :Jan 15 2024 | 5:31 PM IST
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Record 81.8 mn ITRs filed till Dec 31, rises 9% in current assessment year

3 min read Last Updated :Jan 02 2024 | 12:11 AM IST
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Direct taxes mop up after refunds in FY24 at Rs 13.7 trn till Dec 17

3 min read Last Updated :Dec 18 2023 | 10:59 PM IST
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Govt to exceed Rs 18.23 trn full-year direct tax collection target: CBDT

1 min read Last Updated :Nov 15 2023 | 11:42 PM IST
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India's direct tax collection up 17.6% to Rs 12.3 trillion till Nov 9: CBDT

2 min read Last Updated :Nov 10 2023 | 2:35 PM IST
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Net direct tax collection rises 23.5% to Rs 8.65 trn in April-Sept

1 min read Last Updated :Sep 18 2023 | 7:18 PM IST
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CBDT issues draft form for biz to report inventory valuation by accountants

3 min read Last Updated :Aug 17 2023 | 6:46 PM IST
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Changing face of direct taxes: Transformation over a decade

5 min read Last Updated :Jul 24 2023 | 3:30 PM IST
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Tax collection in India one of highest, reduce direct tax to 25%: Bhalla

2 min read Last Updated :May 28 2023 | 6:20 PM IST
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Direct tax buoyancy again falls sub-2% in 2022-23

4 min read Last Updated :May 09 2023 | 10:28 AM IST
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Highest direct tax buoyancy in 15 years in FY22, shows CBDT data

3 min read Last Updated :Apr 13 2023 | 10:49 PM IST
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Bengaluru in close race with Delhi in direct tax collection: I-T dept data

3 min read Last Updated :Apr 11 2023 | 11:24 PM IST
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Top Headlines: Net direct tax collection exceeds RE, chip shortage & more

3 min read Last Updated :Apr 04 2023 | 7:44 AM IST
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Revenue boost: FY23 net direct tax collection exceeds Revised Estimate

3 min read Last Updated :Apr 03 2023 | 10:59 PM IST
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Govt may close FY23 with Rs 50,000 cr shortfall in direct tax mop up

3 min read Last Updated :Mar 31 2023 | 11:20 PM IST
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