Budget in A Minute: After explaining the meaning of Union Budget, Fiscal Deficit, Economic Survey and Direct tax, Zee Business Managing Editor Anil Singhvi explains what Indirect Tax is? The Market Guru has been educating the channel viewers about the most talked about aspects of the budget, yet many do not know about them. His explanations are short and simple and can be understood in just one minute.
In his earlier Budget class, the Market Guru had explained what Direct Tax. It is a tax which is levied on your incomes. But there is another tax which is called Indirect Tax. It is not applied on your income. Whether you have an income or not, you are still required to pay this Indirect Tax. If you are wondering how come, then here is your answer!
What is Indirect Tax?
Whether you have an income or not, that does not impact your indirect tax outgo. Whenever you spend some money, there will be a part of it that will go to the government. Earlier there were dozens of taxes that were applied on the purchases that you made including sales tax, excise tax and service tax. Now the government has created one tax system which is the Goods and Services Tax (GST). It is an indirect tax which will apply on all the spending that you make on buying goods or services.
If you buy any goods or take any professional service, the bill that will be charged to you will have GST. This tax is not dependent on the condition if you earn or not or if you have an income or not.
This is the difference between a Direct Tax and Indirect Tax.
Finance Minister Nirmala Sitharaman will be presenting the Budget 2021 on 1 February.