Taxation System in India
Direct & Indirect Taxes, GST Reforms, and Fiscal Capacity of the State
~11.7%
Tax-to-GDP Ratio
₹1.8–1.9 Lakh Cr
Avg Monthly GST (FY25)
~56%
Direct Tax Share
Income Tax
Levied on individual & HUF income based on slabs.
Corporate Tax
Tax on company profits.
22% (existing), 15% (new manufacturing companies)
Securities Transaction Tax (STT)
Levied on stock market transactions.
Old vs New Regime
Old Regime
Higher rates with exemptions (80C, HRA, LTA).
New Regime (Default)
Lower rates, no exemptions; default regime from FY24.