Indian tax structure is aptly consolidated and follows the financial year. The taxation is levied on any income earned by a person working as a staff under the public sector units, private sector, foreign firms in India, sections of State Governments of India, and departments of the Central Government of India or even self employed people involved in legal commercial activities.
Many corporate bodies engaged in commercial activities also falls under taxation ambit. The public entities, state governments and central government have clear distinction of their functioning. The central government levy tax on all types of income. The State Government of India imposes tax related to Value Added Tax (VAT), earning from agriculture, sales tax, excise duty, professional tax, land revenue, stamp duty, etc. Taxes collected by the local entities are from water supply utilities, octroi tax, drainage and sewage utilities, property tax, and host of others.