The Income Tax is the annual charge levied on the income viz. Salary, wage, commission, dividend, bonus, etc. of an individual, company or a firm. For each assessment year, the rate of tax levied on different income levels, as prescribed in the slab.
In India, the income tax is charged annually at the end of each financial year (April – March).
There are different tax rates for different income levels on the basis of which the tax amount is computed. There is a minimum cap on income beyond which the tax is calculated.
There are some deductions under different sections of the Income Tax Act that gives relaxation in the Tax Amount.
According to the Indian Income-tax Act, 1961, the following parties are liable to pay the income tax, provided their annual income falls into one of the income slabs as prescribed in the Act:
Hence, every individual falling in any of the above-mentioned categories must pay income tax which is used by the government for the betterment of the society.
For individuals being a resident other than not ordinarily resident having Income from Salaries, one house property, other sources (Interest etc.) and having total income upto Rs.50 lakh
For Individuals and HUFs not having income from profits and gains of business or profession
For individuals and HUFs having income from profits and gains of business or profession
For presumptive income from Business & Profession
For persons other than:- (i) Individual, (ii) HUF, (iii) Company and (iv) Person filing Form ITR-7
For Companies other than companies claiming exemption under section 11
For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)
Individual 31 July of next financial year
Body of Individuals (BOI) 31 July of next financial year
Association of Persons (AOP) 31 July of next financial year
Businesses (Requiring Audit) 30 September of next financial year
Businesses (Requiring TP Report) 30 November of next financial year