Terminology on Budget
Published on Sep 18, 2020
On the day of the Budget, The finance minister of India presents some documents related to the financial tear and its budget which is about 10 to 12 pages which defines the financial year, usually starts from 1st April to 31st March. The financial statement is basically divided into three parts: public accounts, consolidated fund, and contingency fund and it is compulsory for the minister to present the whole data of state expenditure, revenue, and receipts as well.
PUBLIC ACCOUNT
These are the accounts where the government does not play that much important role. These funds are not given to the government but these are given to the right owner, but for these funds, the government has to present data which is known as receipt and expenditure.
CONSOLIDATED ACCOUNTS
This account really plays an important role in the Indian government as all the important receipts, funds, money borrowed and received come under this account. All the expenditures and receipts are made by this fund except for those that come under the Public accounts and Contingency accounts. As this the most important account so only Parliament can make any change and give Approval.
CONTINGENCY ACCOUNTS
These accounts are mainly formed for urgent and unforeseen revenues and expenditure. These accounts are mainly disposed of by the President. If the minister has to work upon these accounts the one needs approval from the President.
CAPITAL RECEIPT/EXPENDITURE
All the assets created by these receipts and expenditures came under these capital accounts. Like if a government sells or buys any such kind of assets. Those assets will come under the Capital accounts. With the help of these accounts, the government has to make proper revenue and expenditure budget. The public account pays an important role in giving an option on how to present these accounts, how to work upon these accounts, and how to save them. The most important thing that the government has to present these accounts annually.
CORPORATION TAX
Tax on the profit of companies.
TAXES ON INCOME OTHER THAN CORPORATION
Income tax has to be paid without any profit or by any individual or by non-cooperative as well.
SECURITIES TRANSACTION TAX (STT)
The situation where the government has to sell their assets and property for discussing the loss and profit which defines them as short term and long term capitals. You can say as these tax are also called turnover tax received by the shares transaction. By some recent news, the government has abolished long term capital.
BANKING CASH TRANSACTION TAX (BCTT)
BCTT is not that much big related tax, it is basically telling how much money is withdrawn in a day, this tax is basically made to get the exact information about black money and if someone has withdrawn a big amount, the government can take actions against it.
CUSTOM
These are the taxes basically based on the import facilities which reserve the rights of the Indian Peasants, traders, and farmers so that it can protect the domestic sector and primary sector of our country.
UNION EXICE DUTY TAX
Union Excise Duty Tax is an Indirect Tax on goods manufactured in India on the Rate decided by Schedule 1 and 2 decided by Central Excise Tariff Act, 1985.
SERVICE TAX
It is a tax basically based on the services like the telephone bills, and other rendered services.
DIRECT TAX
These are the taxes basically based on the traditional burden of tax paid by the one whom it is levied. This tax is based on the principle of wealth and income. There are some departments related to this tax are income tax, FBT, BCTT, and STT.
INDIRECT TAX
These are tax where there is no difference in the economic condition as everyone has to pay this. This is not individually based on the wealth of the person but also based on service tax, custom excise, etc. These taxes are quite aggressive as they do not differentiate between people. But by the government, there are some departments where only Direct taxes are applicable.
NON TAX REVENUE
This is one of the most important receipts as it is based on the interest payment. The government has issued some major services like medical services, railways services, and many community and economic services as well. But the railway services are separated.
PUBLIC DEBT
Public debts are based as debts receipts and expenditure which are borrowed and has to be paid back. It is basically a receipt which can be Internal or External.
TREASURY BILLS
These bills are also called T bills. These debts are based on less than a year. These are for the short term and for the long term as well. Long term bonds are called dated securities and the short term is called receipts and expenditure.
MARKET STABILISATON SCHEME
This is a scheme importantly made for RBI to give it strength to conduct exchange and other matters like monetary matters. It can also strengthen RBI to make a progressive effect and provide a smooth inquiry to them. And it also manages the whole liquidity.
SECURITIES AGAINST SMALL SAVINGS
The government has maintained some small savings like there is a small part of loans which meets small requirement so the government has made these small savings by issuing securities to these funds.
FINANCE BILL
It is a plan introduced by the government to upgrade the existing tax schedule and plan about the coming ones as well and how to sort with the existing one. This bill is usually approved by the parliament. It is the key document as far as the taxes are concerned.