Income tax india.gov.in

Income Tax simple definition: Wondering what is income tax and how does it work? Income tax in India is a tax paid by individuals or entities depending on the level of earnings or gains during a financial year. The earnings may be both actual and notional. The Government of India decides the rate of income tax as well as income tax slabs on which individuals are taxed. Those under higher income slabs are taxed at higher rates. The taxable income slabs are changed from time to time, keeping in mind the price levels. Sometimes, the government also provides income tax rebates, which benefit people in the lower-income group. To collect long-term funds, the government also provides income tax incentives. The amount invested in tax-saving schemes is deducted from gross income, which reduces the amount of taxable income and benefits the taxpayer. In case the actual tax payable is less than either the amount of advance tax paid or the amount of TDS for the corresponding year, the assessee may claim the excess tax back by filing the appropriate ITR Form. Once the ITR is verified, the income tax refund is processed if the Income Tax Department finds that the claim is genuine. What is Income from House Property? • Income from salary/pension: This includes basic salary, taxable allowances, perquisites, and profit in lieu of salary, as well as pension received by the person who himself/herself has retired from the service. Incomes from salary and pension are included in the computation...

Income Tax simple definition: Wondering what is income tax and how does it work? Income tax in India is a tax paid by individuals or entities depending on the level of earnings or gains during a financial year. The earnings may be both actual and notional. The Government of India decides the rate of income tax as well as income tax slabs on which individuals are taxed. Those under higher income slabs are taxed at higher rates. The taxable income slabs are changed from time to time, keeping in mind the price levels. Sometimes, the government also provides income tax rebates, which benefit people in the lower-income group. To collect long-term funds, the government also provides income tax incentives. The amount invested in tax-saving schemes is deducted from gross income, which reduces the amount of taxable income and benefits the taxpayer. In case the actual tax payable is less than either the amount of advance tax paid or the amount of TDS for the corresponding year, the assessee may claim the excess tax back by filing the appropriate ITR Form. Once the ITR is verified, the income tax refund is processed if the Income Tax Department finds that the claim is genuine. Explainer: India’s income tax base narrow, expected to grow faster now • Income from salary/pension: This includes basic salary, taxable allowances, perquisites, and profit in lieu of salary, as well as pension received by the person who himself/herself has retired from the service. Incomes from salary and pens...