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Direct & Indirect Tax - Overview

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Direct & Indirect Tax - Overview

Taxation – An Overview

In India, our tax structure is divided into two parts Direct Tax and Indirect Tax. It is very crucial to understand the overview of Direct and Indirect Tax. While direct taxes are levied on incomes earned by individuals and corporate entities, the burden to pay taxes is on the taxpayers themselves. On the other hand, indirect taxes are imposed on the sale of goods and provision of services where the burden to collect and deposit taxes is on the sellers instead of the taxpayer directly. However, indirect taxes are borne by the ultimate consumers of goods or services.

Central Governments and State Governments levy significant Taxes in our country. However, Local Authorities such as Municipality and Local governments have also been given some powers for levy and collection of taxes and charges in their jurisdictions.

Over the last few years, the Central and many State Governments have undertaken many reforms in policy formulation and implementations for the objective of Ease of doing business and regular efforts on simplification of processes towards great predictability, transparency and automation. Introduction of GST is one of such reforms to eliminate the cascading effect of taxes and to overcome the complexities in multiple indirect tax regimes in India.

As a firm of Chartered Accountants, we at MAG focus on providing the best consultancy for meeting your tax compliances on time. Taxation is a specialised and vast domain where right interpretation and analysis skills are required. Our team of experts have the requisite knowledge and technical expertise to carry out tax planning, administration, documentation and representations.

Domestic Taxation

All governments require revenue, and domestic taxes are the primary means for generating it. Yet both the size and shape of taxation vary significantly across countries and have been transformed over time. The main domestic taxes in India are Income Tax, indirect taxes on goods and services, taxes on property, wealth taxes. Property and wealth are taxed in most advanced industrial countries. In India, wealth tax has been abolished for last many years.
In the area of taxation services, we are provisioning to large multinational enterprises and private business houses. Our focus is on developing as well as engineering compliance tools and approaches that magnify your business. Our team is also proficient in managing assessment and representations.

1.  Direct Tax:

With tax laws progressing each day, businesses must be informed with timely compliance challenges that may profess a threat and lead to penalties and prosecution. A tax-efficient structure for the businesses will release the load from the entity's shoulders and thereby assure related compliances. Direct taxes comprise of Corporate Tax and Personal Tax. We Manish Anil Gupta & Co. is best Income Tax Consultants in Delhi, Tax Advisory Services Near Me and audit firm in West Delhi. We provide one of the best Tax advisory services in India.

Personal Tax:

Apart from tax paid on business earnings, tax paid on personal income by an individual is termed as personal tax. We manage to file personal tax returns, withholding tax, advance tax of individuals, including high net worth individuals. We have an expert team of professionals who represent clients before revenue authorities and provide solutions to their various concerns, such as how to claim income tax refund of deceased assessee. We are among few chartered accountants assisting NRIs and non-residents in filing tax returns and obtaining different registrations such as registration with foreign regional registration office (FRRO), permanent account number (PAN) etc. We are the best TDS consultants in Delhi and provide the best Income Tax consultancy services.

Corporate Tax:

Corporate tax is a tax levied on profits earned by various corporate entities. Companies which are formed under Companies Act or any other act are obligated to pay tax on incomes earned at the rates specified under the Income Tax Act, subject to amendments in rates and related provisions from time-to-time. We serve corporates in the filing of tax returns, assisting in corporate tax planning, regular tax compliance services, legal opinions and representations and we are the best Income Tax advisors in Delhi.

Our service bag includes the following advisory and compliance services w.r.t. direct taxes:
  • Tax Planning and Advisory

  • Income Tax Return Filings

  • Preparation for Income Tax Scrutiny Assessments and various other Tax Proceedings
  • Filing and submission of Income Tax Appeals before CIT(A) and ITAT

  • Representations before Income Tax Authorities

  • Payments of Advance Tax, TDS and reconciliations

  • E-Filing of TDS returns & Form 16/16A preparations

  • Filing of Tax Audit Reports

  • Applications for Lower Tax Deduction Certificates

  • Capital Gain Calculations

  • Assistance in Tax Litigations & related Controversies

2.  Indirect Tax:

To reduce indirect tax incidence and risk of possible assessments and scrutiny, it is very crucial to outline significant tax and compliance strategies, which in turn needs appropriate professional guidance and assistance. Manish Anil Gupta & Co. is the best Indirect Tax Consultants in Delhi. We assist in obtaining GST registrations, returns filing, refunds, and representations before GST authorities, opinions, annual and transitional compliances. We also provide services relating to service tax, customs, VAT & CST, excise duties, etc.

3.  Tax Litigations, Assessments and Representations before various authorities: 

Sometimes, an assessee furnishes incomplete or incorrect information in returns or documents to the tax authorities that become the reason for examination by the department based on doubts over the reliability of the information provided. Department finds scrutiny assessments as their best tool in these circumstances. Departments issue notices to such assesses in their names and takes the necessary actions as per the directions provided to them.
MAG can be valuable to you in: 


  • Income Tax Scrutiny Assessments

  • Transfer Pricing Assessment and Litigations

  • Representation before Company Law Board, Registrar of Companies and Regional Director

  • Filing and submission of Appeals before CIT(A) and ITAT

  • Income Tax Appeal Hearings and Litigations

  • Representations before GST authorities

  • Replying to every notice and information asked by department

  • Processing of refunds in Income Tax and GST

International Taxation:

Several multinational enterprises have entered the boundaries of India, resulting in an enormous penetration of foreign direct investment (FDI) in India. Also, since the advent of liberalisation, Indian entities have made overseas direct investments in diversified countries to apprehend global opportunities. We provide advisory services for corporate structuring and planning, Relief on Double Taxation and interpretation on tax treaties, outbound and inbound investments, assistance in foreign inward and outward remittances, transfer pricing and representation in assessments. We are one of the best tax consulting firms and tax advisors in India.

 In International taxation we can assist you in:


  • Transfer Pricing Matters

  • Assistance in FIRC (Foreign Inward Remittance Certificates)

  • Formation of Business in India

  • Setting up of Branches/Liasion Offices/Permanent Establishment in India

  • Filing of tax returns of Non-Resident Indians (NRI)

  • Assistance in Foreign Direct Investment (FDI)

  • Equalisation Levy

  • Repatriation Assistance

For any assistance in the field of direct and indirect taxes or international taxation and related matters, you can reach out to us at Our experienced professionals shall provide you with the best services with the utmost commitment in the area of taxation.

Frequently Asked Questions

Tax planning means the reduction of a person’s tax liability by way of utilisation of the deductions, exemptions, and benefits offered by the Income Tax department in the best possible manner.

Tax planning is important for the taxpayers as it helps in:
  • Reducing the tax burden on the taxpayers.
  • Channelising funds from taxable sources to different investment plans like investing funds in tax-saving FDs.
  • Saving funds that can be re-invested in the business and used for its growth, in case of corporates or assessees who own a business.
Form 16 and 16A are the certificates of deduction/collection of tax at source. These certificates show details of TDS/TCS for various transactions between the tax deductor and deductee. It is mandatory for the tax deductors to issue these certificates to the taxpayers. While Form 16 is for only salary income, Form 16A is applicable for TDS on income other than salary.
Yes, you can pay the Income Tax using a credit card also.
Yes, you can file a revised return if you have committed any mistake while filing the original return. The due date for filing a revised return is 31st December following the relevant financial year. For example, for F.Y. 2021-22, the revised return can be filed up to 31st December 2022.

Also, according to the latest budget (Finance Bill 2022), you can now file an updated return also to rectify your mistakes up to two years from the end of the relevant assessment year.

The different types of direct taxes include income tax, corporate tax, capital gains tax, wealth tax, and property tax.

Direct tax is levied on individuals or organizations and is paid directly to the government, while indirect tax is imposed on goods and services and is collected by intermediaries such as retailers.    
Governments often provide exemptions, deductions, or tax credits for specific direct taxes. These exemptions and deductions vary on a case to case basis and may apply to certain income sources, investments.
Since indirect taxes are included in the price of goods and services, they cannot be avoided by the end consumer. However, businesses can sometimes claim input tax credits or exemptions based on certain criteria set by the government.
Indirect taxes are usually calculated as a percentage of the price of a product or service. The specific tax rate depends on the type of goods or services being taxed and the applicable tax regulations in a particular jurisdiction.
Direct taxes, such as income tax, are calculated based on the taxpayer's income or profits. Tax rates may vary depending on income brackets or the nature of the income (e.g., capital gains). Governments typically provide tax brackets and tax rate schedules to determine the amount owed.
Examples of direct taxes include income tax, corporate tax, capital gains tax, wealth tax, and inheritance tax. Indirect taxes include goods and services tax (GST), value-added tax (VAT), excise duty, customs duty, and sales tax.
Corporate tax refers to the tax imposed on the profits earned by corporate entities, such as companies formed under the Companies Act or any other applicable act. These entities are obligated to pay tax on their income at rates specified under the Income Tax Act, subject to amendments in rates and related provisions over time.
Income tax refers to the tax paid by individuals on their income, while corporate tax is the tax levied on the profits earned by corporate entities.
Indirect taxes can impact international trade and imports/exports by influencing the cost of goods and services, affecting competitiveness, and leading to potential trade barriers or tariff implications, depending on the tax structure and trade agreements in place.
Direct Tax: Individuals, Hindu Undivided Families (HUFs), companies, partnership firms, and other entities that earn taxable income are liable to pay direct taxes.

Indirect Tax: Consumers, businesses, and individuals who purchase goods or services are liable to pay indirect taxes. These taxes are usually collected by businesses on behalf of the government and passed on to the consumers as part of the product or service cost.

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