Income tax is charged on the annual income earned by an individual. The amount of tax paid depends on how much money an individual earned as income over a financial year. Income tax is paid on your taxable income as per the provisions of the Income Tax Act. Whereas, you file a tax return to show that you've paid all the tax that you need to pay. Income tax payment, TDS/TCS payment, and Non-TDS/TCS payments can be done online. The ITR document is very useful when it comes to applying for a loan or visa.
High Returns
Get Returns as high as 17%*Zero Capital Gains tax
unlike 10% in Mutual FundsSave upto Rs 46,800
in Tax under section 80 C*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
Income Tax is a tax you pay directly to the government basis your income or profit. The Government of India collects income tax. Taxes are of two types - direct tax and indirect tax.
Direct tax is the tax you pay on your income directly to the Government and is levied on profits and income. However, indirect tax is levied on goods and services collected by someone else on your behalf and paid to the Government like theatres, restaurants, etc. So, for example, service tax is what you pay in a restaurant and is an indirect tax, whereas Income Tax, which is deducted from your salary every month in the form of TDS, is an example of direct tax.
The money collected by the direct tax route is used by the Government for infrastructural developments and also to pay the employees of central and state government bodies.
Income Tax Act of India was passed in 1961. This Act governs the income tax provisions and the various deductions that apply to it. However, since 1961, the law has been amended several times to take care of inflation and other socio-economic situations.
Income Tax is undoubtedly the most crucial source of revenue for the Indian Government. Hence, it is established as an inevitable imposition on the citizens in order to raise funds for fulfilling the development & defense needs of the country.
Taxes imposed on income, purchase, sale, and property help the Government run different government embodiment and machinery.
In India, the first Income Tax Act was introduced in 1860. It was implied by James Wilson to overcome heavy losses suffered by the British Government due to India's freedom movement in 1857. The history of Income Tax in India is divided into 3 different periods:
1860-1885
1886-1914
1914 till date
Currently, the Income Tax Act 1961 is applicable in India. In 1956, the Government referred to the request to impose Income Tax Act. The Law Commission further submitted its report on the Income tax Act in 1958, and the same year, Chairman Shri Mahavir Tyagi chaired the Direct Taxes Administration inquiry Commission.
The Income Tax Act 1961 was introduced to the public. Since then, it has undergone amendments from time to time.
The legislature introduced the Income Tax Act 1961 to govern and administer income tax in the country. However, in 1962, the income tax rules were created to help enforce and apply the law constituted in the Act. Moreover, one can only read the income tax rule combined with the Income Tax Act. The Income Tax Rules are made within the Income Tax Act's structure and are not allowed to overrule its provisions.
As per the Income Tax Act, there are 2 types of taxes in India:
It is borne and paid directly by the individual it is imposed on, such as wealth tax, income tax, gift tax, etc. The taxpayer pays this tax directly to the Government without any involvement of an intermediary source.
If the taxpayer passes on a tax to the other person, it is an indirect tax, e.g., sales tax, Value Added Tax (VAT), etc. This type of tax is paid indirectly to the Income tax department.
Any Indian citizen aged below 60 years is liable to pay income tax if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, they will have to pay taxes to the Government of India.
Additionally, the following entities that generate income are liable to pay direct taxes:
Hindu Undivided Family (HUF)
Body of Individuals (BOI)
Association of Persons (AOP)
Local Authorities
Corporate firms
Companies
All Artificial Juridical Persons
Let's take a look at how new tax rules will affect the tax outgo of taxpayers as per the age criteria:
Tax Rate for Individuals
Net Income Range | Income Tax Rates | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 2,50,000 | NIL | NIL |
Above Rs. 2,50,000 but less than Rs. 5,00,000 | 5% | 5% |
Above Rs. 5,00,000 but less than Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Total Income | Simplified Optional Tax Rate |
Up to Rs.2.5 lakh | Nil |
From 2.5 lakh- Rs.5 lakh | 5% |
Rs.5 lakh-Rs.7.5 Lakh | 10% |
Rs.7.5 Lakh-Rs.10 lakh | 15% |
Rs.10 lakh-Rs.12.5 lakh | 20% |
Rs.12.5 lakh-Rs.15 lakh | 25% |
Above Rs.15 Lakh | 30% |
The cess and surcharge on income tax payable are applicable if the total income of the assessee exceeds the below-mentioned limits:
Assessment Year 2022-23 | |
Income Range | Surcharge |
Above Rs. 50 Lakhs but less than Rs. 1 Crore | 10% |
Above Rs. 1 Crore but less than Rs. 2 Crores | 15% |
Above Rs. 2 Crores but less than Rs. 5 Crores | 25% |
Above Rs. 5 crores but less than Rs. 10 Crores | 37% |
Above Rs. 10 Crores | 37% |
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
A Senior Citizen of India is an individual more than 60 years of age at any time during the previous financial year.
Net Income Range | Income Tax Rates | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 3,00,000 | NIL | NIL |
Above Rs. 3,00,000 but less than Rs. 5,00,000 | 5% | 5% |
Above Rs. 5,00,000 but less than Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Super Senior Citizen is an individual more than 80 years of age at any time during the previous financial year.
Net Income Range | Income Tax Rates | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 5,00,000 | NIL | NIL |
Above Rs. 5,00,000 but less than Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Hindu undivided families include BOI, AOP, and Artificial Juridical Person
Net Income Range | Rate of Income-tax | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 2,50,000 | NIL | NIL |
Above Rs. 2,50,000 but less than Rs. 5,00,000 | 5% | 5% |
Above Rs. 5,00,000 but less than Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
The cess and surcharge on income tax payable are applicable if the total income of the assessee exceeds the below-mentioned limits:
<table">Surcharge RateRange of IncomeAssessment Year 2022-23Assessment Year 2021-22Above Rs. 50 Lakhs but less than Rs. 1 Crore10%10%Above Rs. 1 Crore but less than Rs. 2 Crores15%15%Above Rs. 2 Crores but less than Rs. 5 Crores25%25%Above Rs. 5 crores but less than Rs. 10 Crores37%37%Above Rs. 10 Crores37%37%The New Income Tax Slab for FY 2020-2021 has revised the income tax slabs for different income groups. The income group up to Rs. 2.5 lakh is exempted from tax. There is a 10% tax for those earning between Rs. 5 lakhs and Rs. 7.5 lakhs. 15% tax will be levied on people earning between Rs. 7.5 lakhs and Rs. 10 lakhs in a financial year. 20% and 25% tax is levied on the income group of Rs. 10 lakh to 12.5 lakhs and Rs. 12.5 to Rs. 15 lakhs respectively.
Annual Income (in Lakhs) | Old Tax Rate | New Tax Rate |
2.5 | NIL | NIL |
2.5 to 5 | 5% | 5% |
5 to 7.5 | 20% | 10% |
7.5 to 10 | 20% | 15% |
10 to 12.5 | 30% | 20% |
12.5 to 15 | 30% | 25% |
15 and above | 30% | 30% |
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply
Surcharge applicable in the Income tax slab 2020-21 is kept the same as it was in the old tax regime 2019-2020.
The income tax slab is a slab under which an individual fall is determined based on the income earned by an individual. Individuals whose income is less than Rs.2.5 lakh per annum are exempted from tax.
The resident taxpayers are divided into three categories based on an individual's age. So let's take a look at it.
Individuals who are less than 60 years of age.
Senior citizens above the age of 60 years old and below 80 years of age.
Super senior citizens who are above 80 years of age.
Income Tax Slabs | Income Tax Rates |
Income less than Rs 2.5 lakhs | Nil |
Income greater than Rs 2.5 lakhs but less than Rs 5 lakhs | 5% of the amount exceeding Rs 2.5 lakhs |
Income greater than Rs 5 lakhs but less than Rs 10 lakhs | Rs.12,500+20% of the amount exceeding Rs 5 lakhs |
Income greater than Rs 10 lakhs | Rs.1,12,500+30% of the amount exceeding Rs 10 lakhs |
Additional 4% health and education cess are applicable to the tax amount calculated above.
Income Tax Slabs | Income Tax Rates |
Income Up to Rs.3,00,000 | Nil |
Income from Rs.3,00,000- Rs.5,00,000 | 5% of the amount exceeding Rs 3 lakhs |
Income from Rs.5,00,000- Rs.10,00,000 | 20% of the amount exceeding Rs 5 lakhs |
Taxable income greater than Rs 10 lakhs | 30% of the amount exceeding Rs 10 lakhs |
An additional 4% health and education cess is applicable to the tax amount calculated above.
Income Tax Slabs | Income Tax Rates |
Income up to Rs.5,00,000 | Nil |
Income from Rs.5,00,000-Rs.10,00,00 | 20% of the amount exceeding Rs 5 lakhs |
Income more than Rs.10,00,000 | 30% of the amount exceeding Rs 10 lakhs |
An additional 4% health and education cess is applicable to the tax amount calculated above.
Income Limit | Surcharge rate on the amount of Income Tax |
In case the net income exceeds Rs.50 lakhs but less than Rs.1 crore | 0.1 |
In case the net income exceeds Rs.1 crore but less than Rs.2 crore | 0.15 |
In case the net income exceeds Rs.2 crore but less than Rs.5 crore | 0.25 |
Net Income exceeds Rs.5 crore | 0.37 |
Income tax slab rates are defined based on the earnings of the taxpayers. Income tax slab rates are broadly categorized as follows:
Income Tax Slabs | Income Tax Rates |
Income less than Rs 2.5 lakhs | Not applicable |
Income greater than Rs 2.5 lakhs but less than Rs 5 lakhs | 5% of the amount exceeding Rs 2.5 lakhs |
Income greater than Rs 5 lakhs but less than Rs 10 lakhs | 20% of the amount exceeding Rs 5 lakhs |
Income greater than Rs 10 lakhs | 30% of the amount exceeding Rs 10 lakhs |
Income Tax Slabs | Income Tax Rates |
Taxable income less than Rs 3 lakhs | Not Applicable |
Taxable income greater than Rs 3 lakhs but less than Rs 5 lakhs | 5% of the amount exceeding Rs 3 lakhs |
Taxable income greater than Rs 5 lakhs but less than Rs 10 lakhs | 20% of the amount exceeding Rs 5 lakhs |
Taxable income greater than Rs 10 lakhs | 30% of the amount exceeding Rs 10 lakhs |
Income Tax Slabs | Income Tax Rates |
Taxable income less than Rs 5 lakhs | Not Applicable |
Taxable income greater than Rs 5 lakhs but less than Rs 10 lakhs | 20% of the amount exceeding Rs 5 lakhs |
Taxable income greater than Rs 10 lakhs | 30% of the amount exceeding Rs 10 lakhs |
Income Tax Slabs | Income Tax Rates |
Taxable income less than Rs. 10,000 | 10% of the income |
Taxable income greater than Rs. 10,000 but less than Rs. 20,000 | 20% of the amount exceeding Rs. 10,000. |
Taxable income greater than Rs. 20,000 | 30% of the amount exceeding Rs. 20,000. |
The income tax rate applicable for Domestic Companies will be 30%.
Nature of Income | Rate of Tax |
According to the agreement designed by the Indian Government, if the Indian Government pays the foreign firms in the form of royalties (After March 31st,1961 and before April 1st, 1976) | 50% |
According to the agreement made with an Indian concern, if the payment is made for the technical services (provided by foreign firms - After February 29th, 1964, before April 1st, 1976) | 50% |
For any other income | 40% |
It is important to keep in mind that not all income can be taxed based on income tax slab rates. An exception to this rule is capital gains income. The capital gains tax is applicable based on the asset owned by the individual, and for the period they have owned it. The asset's holding period will determine whether it is a long-term or short-term asset. Let's look at the tax rate applicable to the different types of capital assets based on the holding period.
Type of Capital Asset | Holding Period | Tax Rate |
House Property | A time period of more than 2 years- long term A time period of less than 2 years- short term | 20% depends on the slab rate |
Equity Mutual Fund | A time period of more than 1 year - Long term A time period of less than 1 year- Short term | Exempt (until 31st march 2018)Capital gains more than Rs.1 Lakh are taxable at 10 %, 15% |
Debt Mutual Fund | A time period of more than 3 years- Long Term A time period of less than 3 years- short term | 20% depends on the slab rate |
Shares(STT Paid) | A time period of more than 1 year- long term A time period of less than 1 year- short term | Exempt (until 31st march 2018)Capital gains more than Rs.1 Lakh are taxable at 10 %, 15% |
Shares(STT Unpaid) | A time period of more than 1 year- long term A time period of less than 1 year- short term | 20% as per the tax slab rate. |
FMPs | A time period of more than 3 years- long term A time period of less than 3 years- short term | 20% as per the tax slab rate. |
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply
Nowadays, taxpayers can use the facility of e-payment in order to pay direct taxes online. However, it is important to keep in mind that the taxpayer should have a net-banking account with an authorized bank to avail of the online tax payment facility. In addition, for the validation purpose, the taxpayers also need to provide the Permanent Account Number (PAN) or Tax Deduction and Collection Number (TAN).
Similar to the other countries, tax is the main source of revenue for the Government in India as well. Thus, along with paying taxes, the citizens of India are also obligated to file Income Tax Returns (ITR). Unlike before, filing ITR is not as difficult as it sounds. An individual can file an income tax return online by following simple steps. Let's take a look at the steps to e-file ITR.
Before you start filing the income tax return, these documents should be kept handy.
Permanent Account Number (PAN)
Adhaar Card
Bank Account Details
Form 16
Investments Details
Visit the official website of the income tax department (www dot incometaxindiaefiling.gov.in) and log in using the user ID and Password and enter the captcha displayed.
Once you log in to your account, go to the e-file section and select the option of the income tax return. Note-you can fill only ITR 1 and ITR4s Online.
Choose the assessment year, ITR form ITR 4S/ITR1, and 'prepare and submit ITR online.'
Check the bank details and click on the continue button.
You will need to upload the Digital Signature Certificate (DSC) in case you have it. Make sure that the DSC should be registered with the e-filing.
Click on the submit button.
If you don't have DSC, the income tax return verification will be displayed on the screen on the successful submission.
Download the ITR-V form from the link displayed, sign it, and submit it to the CPC before 120 days from the e-filing date.
Once the process of ITR-V is completed, your e-filing ITR will be done.
One can do the income tax computation manually or using an income tax calculator. The income tax rate applicable for an individual depends on the tax slab under which they fall. For example, for a salaried individual, the income from salary includes the basic income+ House Rent Allowance (HRA) + Transportation Allowance + Special Allowance, if any. However, there are specific components of the salary which are tax exempted, such as; Leave Travel Allowance (LTA), reimbursement of telephone bills, etc. Moreover, an individual is also eligible to claim tax exemption on HRA if they reside in a rented house.
There are primarily three ways in which the Government collects Income Taxes:
Taxes Deducted at Source (TDS)
Taxes Collected at Source (TCS)
Voluntary payment by taxpayers into designated Banks
Income taxes are levied depending on the source of income. Following are the five main income heads from which taxes are deducted.
The taxable income that all employees receive from their employers is categorized under this head. As per section 192 of the Income Tax Act, the employer will withhold taxes if the employees do not come within the taxable bracket. All about tax deductions and the net paid income are detailed in Form 16 that the employer must provide to the employee.
Capital gains on taxation apply to earnings from the sale of capital assets held by the tax assessee. Capital assets refer to the properties such as buildings, lands, bonds, equities, debentures, jewelry, etc. Taxes are levied on the income of the assessee when such properties are sold.
Income Tax is levied on house property if the house is given out on rent by the owner. However, the property cannot be used for business or professional purposes under this head.
As per sections 30 to 43D of the Income Tax Act, the profits earned from businesses or by providing professional services are considered taxable at applicable rates. This income head is also known as "Profits and Gains of Business or Profession."
Income from any sources other than the four listed above is categorized under this head. Some specific income coming under this head is listed below:
Lottery/horse race winnings
Income from dividends
Pension received after the pensioner's death.
Rental income (other than house properties)
Gifts received
Interest in government securities, debentures, and bonds.
Every individual with a source of income, regular or irregular, is legally required to file their income tax returns. You should file income tax returns even if your income is below the taxable bracket. There are prescribed forms through which the income earned by a person and the income tax paid thereon are informed to the Income Tax Authority. The following table shows different forms prescribed for different classes of taxpayers.
Forms | Description |
ITR Form 1 | Any person who receives a regular salary or pension or has an income from residential property or other sources. |
ITR Form 2 | This form is for those who come under the category of Hindu Undivided Families and have income from any sources other than Profits gained from business and profession. |
ITR Form 3 | This form is for the Hindu Undivided Families whose income falls under the head of Profits and Gains of Business or Profession. |
ITR Form 4S | This form, also known as SUGAM, applies to HUFs(Hindu Undivided Families) and individuals opting for the SUGAM taxation scheme as per section 44 AD/ AE |
ITR Form 4 | This form applies to Hindu Undivided Families and individuals who are professionals or proprietors |
ITR Form 5 | This form applies to LLPs, Firms, BOIs, AOPs, artificial judiciary persons, and local authorities. |
ITR Form 6 | This form applies to companies that claim no exemptions as per section 11 of the Income tax Act. |
ITR Form 7 | This form applies to the persons who are required to file returns as per Sections 139(4A), 139 (4D), 139 (4C), 139(4B) |
ITR Form V | ITR V is provided to acknowledge that the Income Tax return has been filed. |
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. The tax benefit is subject to changes in tax laws. *Standard T&C Apply
Mentioned below are the uses and benefits of Filing Income Tax Return
Filing ITR (Income Tax Return) makes it easier for financial institutions to check the financial credibility of an individual (assessee). If a taxpayer applies for a loan, it helps in the easy processing of bank loans.
The process of foreign trips' visa procurement needs ITR proofs.
Some losses such as business loss, speculation loss, a capital loss can be carried forward only when ITR is filed before the due date.
If you have paid any additional tax, it can only be claimed if you have filed your ITR.
Applying for a passport becomes easier if you have filed your ITR as it serves as a Non-ECR proof (Non-Emigration Check Required). You simply need to submit a photocopy of your ITR assessment and the actual payment receipt of the latest income tax return. Or else, you can also submit the income tax statement attested by IT authorities.
If an accidental death occurs, the insurance company will need proof of income to process the claim. In case ITR is missing, it can significantly lower the amount of claim as ITR is the only document the court accepts for such cases.
Filing ITR also comes in handy while applying for government tenders, panel registration, etc. You must submit your ITRs for the last 5 to 7 years, which the tender scrutiny committee will check. It is done to assess whether you (as an applicant/contractor) have worked on a tender at a particular scale or not.
If you are planning to buy a high life cover of Rs. 50 lakhs or 1 crore, it can only be bought if you have filed your ITR. It helps the insurance providers to verify your annual income.
Tax calculation is done on a person's annual income, and the annual financial cycle under income tax law starts from 1st April to 31st of March of the next calendar year. The law classifies the years as "Previous Year" and "Assessment Year."
"Previous year" is defined as the year in which income is earned, and "Assessment Year" is defined as the year in which it is charged.
The following are the various sections of the Income Tax Act of 1961, which allows the reduction of one's Taxable Income.
Under this section, a deduction is available to individuals and HUF. On the payment made towards life insurance policies, provident fund, or superannuation, the tax deduction is available up to the amount of Rs 1,50,000/-.
Tax exemptions under this section are on payments made to insurance companies and LIC under approved pension plans. The pension policy must be taken from the individual himself and must be up to Rs. 1,50,000 out of taxable income.
Tax exemption under this section is for contribution by the assessee and the employer to the new pension scheme. The tax exemption under this section equals the contribution, not exceeding 10% of an individual salary.
The premiums paid on the health insurance comes under this section of income tax deduction. Health insurance policies generally provide coverage to the insured person, spouse, and dependent children. If you pay your health insurance premiums, you can save your taxes up to Rs. 15,000 to Rs. 20,000. In the case of Hindu Undivided Family, the general deduction is up to Rs. 15,000, and the additional deduction is Rs. 5,000.
Under this section, the tax deduction is made on medical expenses arising from treating any disease or illness specified in the rule (11DD). The tax benefit applies to the taxpayer, the family member, or any member of HUF.
The interest paid on education loans in the country comes under this tax deduction section.
The first-time homeowners come under this section of tax benefit. Those whose first home purchase value is less than Rs. 40 lakh and the loan taken for Rs. 25 lakh or less are applicable for the tax deduction.
Under this section, the tax deduction applies to the income earned by royalties and patents. For the patent registered under the patent act, 1970, up to the amount of Rs. 3,00,000 income tax can be saved.
Tax deductions apply on interest earned in the post office and co-operatives society and saving bank accounts. Up to Rs 10,000 of interest income individuals and HUFs can claim the deduction.
This section of income tax deduction applies to disabled people. To avail of the tax benefit under this section, one needs to show their disability certificate. Depending on the severity of the disability, up to Rs 1,00,000 can be non-taxed.
The interest paid on a housing loan comes under this tax exemption section. In addition to the deduction under sections 80C, 80CCF, and 80D, up to Rs 2,00,000 per year can be claimed as the deduction. For the rented properties, 30% of the received rent and municipal taxes paid are eligible for tax savings.
Income Tax in India has been filed annually based on 'Previous Year' and Assessment year.'
According to income tax rules, 'Previous Year,' also known as the 'Financial Year,' begins on 1st April of the current year and ends on 31st March of the next year. Therefore, it doesn't matter in which particular month you have started earning, the financial year will end on the 31st of March, and the new tax year will begin 1st April onwards. Hence, planning your taxes in advance for each financial year is necessary.
Simply put, the upcoming fiscal year comes after the 'Previous Year,' and one must assess and file their income tax returns in the 'Assessment Year.'
The Income Tax Act comes with a wide range of sections. Each section caters to a different aspect of taxation rules in India. Let's have a look into various chapters of the IT Act along with the related sections and sub-sections:
The first section of the Income Tax Act offers a basic introduction to the IT Act.
This chapter deals with the commencement & the extent of the IT Act.
This particular chapter deals with income tax charges, dividend income, the scope of total income, income earned through working abroad, etc.
Chapter 4 of Income Tax laws deal with the other forms of income that are not a part of total income, like income from property, institutions, trusts, political parties' incomes, etc.
The chapter deals with sections about income earned from other sources such as income from capital gains, house property, businesses, etc.
The chapter deals with the transfer of income wherein no actual transfer of assets are involved. It also includes revocable transfer.
This chapter is about the deductions on income generated from specific sources and certain payments.
Chapter 8 of the Income Tax Act deals with the rebates and how much share a member would get in a body or an association.
This chapter deals with the double taxation relief in detail which helps the taxpayers to get a rebate on the income tax paid.
This chapter deals with the special scenarios where income tax payment is avoided. This type of scenario normally includes agreements with foreign countries. The chapter deals with information about the particular countries that follow these kinds of agreements.
This chapter deals with different types of general anti-avoidance income tax rules for income taxpayers.
This chapter deals with the tax calculation under special cases.
Chapter 12A of the Income Tax Act deals with the special provisions formulated for Non-Resident Indians. It includes short-term capital gains, capital gains, provident funds, etc. This chapter includes Section 110 to Section 115BBE of the income tax rules as per the Income Tax Act, 1961.
Various cases in this section yield tax-liable incomes such as foreign currency units, dividends, royalty, etc.
This chapter deals with special tax provisions designed for particular companies. It includes Section 115J to Section 115JF of the Income Tax Act.
This chapter deals with the taxation process to convert a foreign organization into an Indian subsidiary.
This chapter deals with the taxation process for the profits earned by domestic companies. It also deals with the interest payable in case of non-payment of taxes by the companies or if the company is a defaulter.
This chapter deals with the income tax rules on the distributed income of an organization.
Chapter 12E of the Income Tax Act deals with the rules meant for distributed income of unit holders.
This chapter deals with the taxes on income received from venture capital funds and venture capital companies.
This chapter deals with special provisions for shipping companies and the involved taxation procedures.
This chapter deals with the information related to different income tax authorities, including their jurisdiction, appointment & control, their powers, and disclosure of information.
Chapter 15 of the Income Tax Act deals with Section 139 to Section 152. This chapter deals with the return filing formalities, including obtaining PAN, e-filing of ITR, and accounting methods. It also includes other amendments, intimation of any loss and related cases, and rectifying mistakes.
Chapter 14A deals with the special provisions that help to avoid repetitive appeals. It includes the cases that are already pending in the Supreme Court or High Court.
This chapter deals with the liabilities for different cases, including general and special provisions. It also deals with the provisions meant for tax recovery from NRIs, private companies, etc.
Chapter 16 of the Income Tax Act deals with the firms and their taxation and assessment process. It also deals with constitutional changes, succession, and dissolution processes.
This chapter deals with the clauses related to tax collection & recovery. It also gives an insight into the interest charged on late tax payments or recovery cases.
This chapter deals with the income tax relief given to the companies for the dividends they pay to their shareholders. Chapter 18 also deals with the tax relief provided to the companies in lieu of the charitable work that they support through their foundation wings.
Chapter 19 deals with the tax refunds if any extra tax is paid to the Income Tax department. It involves the cases where a taxpayer is eligible to get a refund, interest on their refund if no claim is made and the correctness of the assessment. It includes Section 237 to Section 245.
Chapter 19A deals with the settlement of cases and includes sections 245A to 245L. Different aspects of settlements such as application, abatement of proceeding, procedure, and recovery are covered under it.
This chapter deals with all advance rulings. It also deals with sections from 245N to 245V. Chapter 19B includes an application for the power of authority, advanced ruling, and procedure.
The chapter deals with the appeals forwarded to the commissioner and deputy commissioner. Other than this, it also deals with appeals made to the Supreme Court, High Court, and other general revision aspects by the commissioner.
Chapter 20A of the Income Tax Act includes sections 269A to section 269S. This chapter deals with acquiring immovable property in some instances to counteract tax evasion. All acquisition aspects, from jurisdiction to every other related aspect, are covered under this chapter.
Chapter 20B deals with different payment modes and requires tax evasion corrections. It also deals with loan accepting and deposits and their corresponding modes.
This chapter deals with buying immovable property. However, the properties that the central Government makes for transfer cases. A few aspects covered under the chapter are appropriate authority, restrictions on the property, vesting of property, and rectifying mistakes.
It includes sections 271 to 275 of the Income Tax Act. It deals with different penalties applicable to taxpayers in different cases. In short, it deals with penalties such as non-payment of taxes, non-disclosure, failure to comply with different provisions of the income tax sections, and so on.
This chapter includes sections 275A to section 280D. These sections deal with prosecution & offenses with respect to compliance failure and other related details.
This chapter includes sections 281 to 298. It further deals with almost all miscellaneous topics that can't be categorized under any other tax chapters mentioned above. It includes generic and special scenarios that may arise concerning the taxation process for different taxpaying entities.
Schedules to the Income Tax Act 1961 consist of various annexures that were amended and added to include the scenarios that were not initially mentioned or covered. These schedules are introduced to make the Income Tax Act more comprehensive and inclusive.
Over the past few years, the income tax department of India has digitized the entire Income Tax Collection and return filing process. As a result, it has become very convenient for individuals and businesses to pay their taxes online, file returns, and finally track their payments' history through the various Income Tax Department portals.
Income Tax paid by you is directly used in nation-building activities. The tax helps the Government improve our country's infrastructure, provide better governance and run the various public services smoothly. All the taxpaying Indians are, therefore, in a little way contributing towards a better future for our motherland.
Particular Details | HUF or Individual | Any Other Assessee |
If some existing profession or business, the income or the gross turnover in any of the three preceding years exceeds the below: 1. Income through profession or business 2. Gross income receipts or turnover in the profession or business |
Rs. 2,50,000 Rs. 2,50,000 |
Rs. 1,20,000 Rs. 10,00,000 |
In the situation of some newly setup profession or business, the gross turnover or income of the 1st previous year is most likely to exceed the below: 1. Income through profession or business 2. Gross income receipts or turnover in the profession or business |
Rs. 2,50,000 Rs. 2,50,000 |
Rs. 1,20,000 Rs. 10,00,000 |