Question

Essay role of taxation in nation building 500 words

Answer 1

  ANSWER:    

a tax a compulsory contribution by an individual or company to the government, whether local or national. It is the ‘compulsory’ aspect that makes it a tax, as opposed to a donation, of course. Taxes are reality of life for all of us, rich and middle-class, in some form or the other.

There are two types of taxes, as any textbook will tell you –

Direct taxes, primarily income tax but also wealth tax, gift-tax and property tax.

Indirect taxes, such as sales tax, service tax, customs duty, octroy (in the case of India, most of these have now been subsumed into a nationwide Goods and Service Tax, or GST)