Principles of Taxation
PRINCIPLES OF TAXATION
INTRODUCTION
DR ASHA R NAIR
I SEM B.COM TAX
DEPT OF COMMERCE
NSS COLLEGE PANDALAM
PUBLIC REVENUE
Public revenue is the total earnings or income
realised by the government for the purpose of
financing public administration
“the income of the government through all
sources like taxes, borrowings, fees, donations
etc is called public revenue or public income”
SOURCES OF PUBLIC REVENUE
The main sources of public revenue can be
classified into two:-
Tax revenue
Non tax revenue
Tax
Tax is a compulsory extraction of money from
the people by an authority, to be spend for
the common benefit of the society
Definition
According to Bastable , “ a tax as a compulsory
contribution of a wealth of a person or body
of persons for the service of public power”
FEATURES OF TAX
•
Tax is a compulsory payment and hence refusal to
pay tax is a punishable offence
•
There is no direct quid-pro-quo (something in
return) between the tax payer and tax imposing
authority.
•
Tax is a payment for an indirect service to be
rented by the government to the community.
•
The amount of payment of tax are determined
from time to time by the tax imposing authority.
CLASSIFICATION OF TAX
TAX
DIRECT TAX
INDIRECT
TAX
DIRECT TAX
When tax is levied on a person directly and
he himself pays the amount to the authorities
is called direct tax. In other words, there is no
intermediary between the tax payer and the
government in case of direct taxes.
Eg: Income Tax , Wealth Tax
INDIRECT TAX
Indirect tax is paid by the tax payer
through an intermediary. In other words the
government collects indirect taxes from
people through the intermediaries like
traders, service providers etc.
Eg: Sales tax, Excise duty, customs duty
NON-TAX REVENUE
Non-Tax Revenue
COMMERCIAL
REVENUUE/PR
ICE
FEES
FINES AND
PENALTY
GIFTS AND
GRANTS
COMMERCIAL REVENUE /PRICE :-
Revenues which
are derived by the government from public
enterprises by selling their goods or
commodities
FEES :-
Fees is charged for the consideration of
services rented. Thus fees has quid-pro-quo
and the amount of fee depends upon the cost
of services rented.
eg : license fee, registration fee
FINES AND PENALITY
:-
Fines and penalities are
imposed as punishment for the violation of law or non-
complainance of rules and regulations
GIFTS AND GRANTS :-
Gifts are voluntary contribution
from private individuals or non government donors
to the government fund for special purpose
Grant is a sum of money given as assistance by the
government or other organisaton for a particular
purpose
THANK YOU
Principles of taxation, including concepts such as public revenue, sources of revenue, types of taxes (direct and indirect), and non-tax revenue, are essential for students of commerce to grasp. Taxation serves as a means for the government to collect revenue for the common good through compulsory contributions from individuals and organizations. Explore the classification, features, and significance of taxes in financing public administration.
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Presentation Transcript
PRINCIPLES OF TAXATION INTRODUCTION DR ASHA R NAIR I SEM B.COM TAX DEPT OF COMMERCE NSS COLLEGE PANDALAM
PUBLIC REVENUE Public revenue is the total earnings or income realised by the government for the purpose of financing public administration the income of the government through all sources like taxes, borrowings, fees, donations etc is called public revenue or public income
SOURCES OF PUBLIC REVENUE The main sources of public revenue can be classified into two:- Tax revenue Non tax revenue
Tax Tax is a compulsory extraction of money from the people by an authority, to be spend for the common benefit of the society Definition According to Bastable , a tax as a compulsory contribution of a wealth of a person or body of persons for the service of public power
FEATURES OF TAX Tax is a compulsory payment and hence refusal to pay tax is a punishable offence There is no direct quid-pro-quo (something in return) between the tax payer and tax imposing authority. Tax is a payment for an indirect service to be rented by the government to the community. The amount of payment of tax are determined from time to time by the tax imposing authority.
CLASSIFICATION OF TAX TAX INDIRECT TAX DIRECT TAX
DIRECT TAX When tax is levied on a person directly and he himself pays the amount to the authorities is called direct tax. In other words, there is no intermediary between the tax payer and the government in case of direct taxes. Eg: Income Tax , Wealth Tax
INDIRECT TAX Indirect tax is paid by the tax payer through an intermediary. In other words the government collects indirect taxes from people through the intermediaries like traders, service providers etc. Eg: Sales tax, Excise duty, customs duty
NON-TAX REVENUE Non-Tax Revenue COMMERCIAL REVENUUE/PR ICE FINES AND PENALTY GIFTS AND GRANTS FEES
COMMERCIAL REVENUE /PRICE :- Revenues which are derived by the government from public enterprises by selling their goods or commodities FEES :- Fees is charged for the consideration of services rented. Thus fees has quid-pro-quo and the amount of fee depends upon the cost of services rented. eg : license fee, registration fee
FINES AND PENALITY:- Fines and penalities are imposed as punishment for the violation of law or non- complainance of rules and regulations GIFTS AND GRANTS :- Gifts are voluntary contribution from private individuals or non government donors to the government fund for special purpose Grant is a sum of money given as assistance by the government or other organisaton for a particular purpose
