What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
The Five Pillars
Government has to finance many social, cultural, industrial and infrastructure projects for development of nation. Along with these projects’ government has to provide scholarships for education, financing of house for poor, etc. To provide all these facilities government needs a lot of money
Here, we will take a look how Government schemes are supported financially.
1. Tax
2. Borrowing and other Liability
3. Union Excise duty
4. Customs
5. Non-Debt Capital Receipt
Tax
Corporation Tax
A corporate entity or corporation is an artificial person who is legally considered to have certain rights and duties, so that it has an independent legal identity separate from its shareholders by law. Today, companies in two distinct groups are divided into the following:
Domestic Corporations - A company formed in India and registered under the Companies Act of India, 2013 is called a Domestic Corporation. Even a foreign firm can be considered as a domestic business if the management and control of the Indian arm is wholly based in India.
International Corporation - As the name implies, in the case of International Business, a company headquartered overseas, and not in India, is considered a foreign business. Also, if any aspect of the management and control of a foreign company is outside of India, then it is often called a foreign company.
This distinction is significant because domestic companies in India are charged corporate tax on their universal income while foreign corporations are charged tax only on the income they earn from their Indian operations.
Income Tax
An income tax is a tax which government impose on income generated within their jurisdiction by businesses and individuals. By statute taxpayers are required to file an annual income tax return to assess their tax obligations. The income taxes are a source of government revenue. They are used to fund public services, pay government bonds, and supply goods to citizens. Some investments, such as housing bonds, tend to be exempt from income taxes.
Goods and Service Tax
GST is an indirect tax that has replaced many of India's Indirect Taxes. On 29 March 2017 Parliament passed the Goods and Service Tax Act. The Act came into force on July 1st, 2017; Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax levied on any added value. On 1 July 2020 GST will complete three full years.
Goods and Service Tax (GST) is an indirect tax levied on the provision of goods and services, in simple terms. This law has replaced many of India 's previous Indirect tax laws. GST is one indirect tax on the nation as a whole.
Borrowing from Central Banks
Government borrowing through government securities issue named G-secs and Treasury Bills. Borrowing is a Government loan that falls under capital receipts in the Budget Document. It's basically the cumulative amount of money that the central government borrows to finance its public programs and benefits expenses. The government announces an annual borrowing plan in the Budget because tax and non-tax income fall short of financing the government's spending program.
Union Excise Duty
This is a duty on manufactured goods, which will be levied at the time of production. Asking what does excise duty mean? What's more, how does the excise duty work? A part of indirect tax, excise duty is a levy on particular products and is levied at the point of manufacture but eventually the responsibility is passed on to the customer. The significance of excise duty is also clear from the impact it has on consumers.
Custom Duty
Each good has a predefined duty rate, which is determined on the basis of various factors, including where such goods were acquired, where such goods were produced, and what these goods are made from. Also, anything that you bring into India for the first time should be declared as per the customs rules. You need to report, for example, the products purchased in a foreign country and any gifts that you receive outside India.
Non-Debt Capital Receipt
Government levied taxes and duties are the largest source of their income or receipts. The money is spent by the government on both operational and growth needs. There are usually two main sources of government income-income receipts and capital receipts. Remember that all sales and capital receipts can be broken down into two subgroups.
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