Budget in one minute: After Anil Singhvi, Managing Director of Zee Business, explained the importance of the Union budget, the budget deficit, the economic survey and direct taxes, he explains what indirect taxes are. The Market Guru has educated channel viewers about the most discussed aspects of the budget, but many do not know about them. Its explanations are short and simple and can be understood in just a minute.
In his previous budget class, the Market Guru explained what direct taxes are. It is a tax that is levied on your income. But there is another tax called an indirect tax. It doesn't apply to your income. Regardless of whether you have an income or not, you still have to pay this indirect tax. If you are wondering how this happens, here is your answer!
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What is indirect tax?
Whether or not you have income will not affect your indirect tax expense. Whenever you spend some money, some of it will go to the government. There used to be dozens of taxes levied on your purchases, including sales tax, excise tax, and service tax. Now the government has created a tax system, namely the goods and services tax (GST). It is an indirect tax that is applied to any expenses you make in purchasing goods or services.
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1 (indirect tax)? # BudgetOnZee # Budget2021 # UnionBudget2021 @AnilSinghvi_ pic.twitter.com/yF0BC5uU8s
– Zee Business (@ZeeBusiness) January 18, 2021
When you buy goods or get professional service, the invoice you are billed has GST. This tax is not conditional on whether you are earning or not, or whether or not you have an income.
This is the difference between a direct and an indirect tax.
Finance Minister Nirmala Sitharaman will present the budget for 2021 on February 1st.