Page 248 - General Knowledge

GENERAL KNOWLEDGE 2019

 These commercial banks failed to help the government in attaining these objectives.
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 Thus, the government decided to nationalize 14 major commercial banks on 19 July, 1969.
 All commercial banks with a deposit over 50 crores were nationalized.

 It was considered that banks were controlled by business houses and thus failed in catering
to the credit needs of poor sections such as a cottage industry, village industry, farmers, craft
men, etc.

 The second dose of nationalization came in April 1980 when banks were nationalized.
 Public Sector Banks (PSBs) are banks where a majority stake is held by a Government.
 The shares of these banks are listed on stock exchanges.
 There are total of 27 PSBs in India.
 In 2011 IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized with a minimum
capital of 500 crores.
4. TAXATION

 Taxes in India are levied by the Central Government and the state governments.
 Some minor taxes are also levied by the local authorities such as the Municipality.
 The authority to levy a tax is derived from the Constitution of India which allocates the power
to levy various taxes between the Central and the State.
 An important restriction on this power is Article 265 of the Constitution which states that ―No
tax shall be levied or collected except by the authority of law‖.
 Therefore, each tax levied or collected has to be backed by an accompanying law, passed
either by the Parliament or by State Legislature.
 In 2015-2016, the gross tax collection of the Centre amounted to 14.60 trillion.
Types of Taxes
 Indian taxing system is of two types: Direct and Indirect.
 Direct taxes play a significant role not only as a source of income but an instrument for
India‘s socio-economic policies.
 Direct taxes include Income Tax, Wealth Tax, Gift Tax, Estate Duty, Corporate Tax, Fringe
Benefit tax.
 It usually collected through an intermediary and the most popular intermediary is your
employer.
 It is possible that you have no contact with tax authorities.
 It can depend on individual circumstances.
 It is possible to change the average tax rate.
 Indirect taxes include duty, Sales Tax, Custom duty, Entertainment Tax, Service Tax.
 Indirect tax paid by one person but collected from another and included in the price, but not
always visible on a bill.
 It cannot depend on individual circumstances.
 It can depend on the object you buy.
 Besides the exclusive power of taxation of the union and the state governments, there
are 3 other categories of taxes.
 Taxes levied by the union government but collected and appropriated by the states. Stamp
duties on bills of exchange, excise duties on medicinal and toilet preparations fall in this
category.
 Secondly, certain duties are levied and collected by the union but the net proceeds of such
taxes are distributed among the states.

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