Computation of tax
INTRODUCTION: Every government, be it Central or State government, needs money for administrative expenses, welfare and development schemes, salaries of employees, etc. Government collect money (revenue) by leaving taxes within their respective territories. In India, we have two types of taxes : (i) Direct taxes and (ii) Indirect taxes. Direct taxes are those that are levied on the income of individuals or organisations. They include income tax and corporate tax. Indirect tax are those that are paid by consumers or organisations when they buy goods or services or both. COMPUTATION OF TAX: Taxes are computed on the cost of purchase of goods or services or both, at a particular percentage pronounced by the government. Percentage of t...