Reviewed by Oct 05, 2020| Updated on
The law is a system of rules that a society or government develops to regulate the actions of the community or society, in general. Laws are made to cater to different segments of the public. The broader segments for which laws are made include crime/criminal proceedings, business agreements, collection of direct tax and indirect taxes, consumer protection, revenue collections and so on.
Under the revenue collection system, there are laws imposing taxes on turnover of business enterprises. For example, the Goods and Services Act imposes a tax on sales or value of services provided by a business. The tax also includes a claim of credit for tax paid. The revenue collection also includes commodity transaction tax, state taxes such as stamp duty laws.
Direct tax laws are a major source of revenue collection. It consists of the Income Tax Act 1961 which taxes the annual income of various taxpayers. Taxpayers include individuals, Hindu Undivided Family, Association of Persons, Companies, LLPs, Firms and Trusts.
Different laws are made to deal with crime, business agreements, consumer protection, dispute resolution, family settlements, marital relations and so on. Laws are also made to deal with funding.