What is meant by taxation?
                     WHAT IS MEANT BY TAXATION?
INTRODUCTION
Taxation is the means by which a 
government or the taxing authority imposes 
or levies a tax on its citizens and business 
entities. From income tax to goods and 
services tax (GST), taxation applies to all 
levels.
Source: cleartax.in
WHAT IS TAXATION?
The Central and State government plays a 
significant role in determining the taxes in 
India. To streamline the process of taxation 
and ensure transparency in the country, the 
state and central governments have 
undertaken various policy reforms over the 
last few years. 
Source: cleartax.in
UNDERSTANDING 
TAXATION
Taxation is differentiated from other forms of 
payment, such as market exchanges, in that 
taxation does not require consent and is not 
directly tied to any services rendered. 
Source: www.investopedia.com
CATEGORIES
The tax structure in India can be classified 
into two main categories:
1. Direct Tax
2. Indirect Tax
Source: cleartax.in
DIRECT TAX
It is defined as the tax imposed directly on a 
taxpayer and is required to be paid to the 
government. Also, an individual cannot pass 
or assign another person to pay the taxes on 
his behalf.
Source: cleartax.in
DIRECT TAXES IMPOSED
Some of the direct taxes imposed on an 
Indian taxpayer are:
Income tax- it is the tax applicable on the 
income earned by an individual or taxpayer.
Corporate tax- this is the tax applicable on 
the profits earned by companies from their 
businesses.
Source: cleartax.in
INDIRECT TAX
It is defined as the tax levied not on the 
income, profit or revenue but the goods and 
services rendered by the taxpayer. Unlike 
direct taxes, indirect taxes can be shifted 
from one individual to another.
Source: cleartax.in
GST IMPLEMENTATION
However, with the implementation of goods 
and services tax (GST) regime from 01 July 
2017, it has replaced all forms of indirect tax 
imposed on goods and services by the state 
and central governments.
Source: cleartax.in
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