Types of Direct Taxes in India

India levies several kinds of direct taxes, though Income Tax is by far the most significant in terms of both revenue and the syllabus's own emphasis.

• Income Tax — levied on the total income of individuals, HUFs, firms, companies, and other assessees, computed under the five heads of income (Section 5).
• Corporate Tax — the income tax levied specifically on the profits of companies, at rates and under provisions specific to corporate assessees (distinct slab/flat-rate structures from those applicable to individuals).
• Capital Gains Tax — tax on the gains arising from the transfer of a capital asset, taxed as a component of income tax under the 'Capital Gains' head, but often discussed separately because of its distinct short-term/long-term rate structure.
• Securities Transaction Tax (STT) — levied on the value of taxable securities transactions (e.g. purchase/sale of shares) carried out on a recognised stock exchange. …