Income Tax

Income tax refers to the tax levied by the government for the purpose of financing its various operations and to provide the various services to the public. The payment of Income Tax in India is done according to the provisions made under the Income Tax Act. According to the Indian Income Tax laws, income from the following sources is deemed taxable:
  • Salaries
  • Income from house property
  • Profits and gains of business or profession
  • Capital gains
  • Income from other sources
The sum of income from all the above sources is calculated according to the provisions of Income Tax Act. The tax rates in India vary according to the earnings of an individual and are referred to as Income Tax slabs. Generally, these Income Tax rates are revised every year during the budget. Income tax is calculated on an annual basis. It is levied on the income earned in the previous year which is also known as the Assessment Year.