Income tax is a tax imposed by the government on the income earned by individuals and businesses. It is calculated based on a person’s earnings during a financial year.
Income tax is calculated based on the applicable tax slabs set by the government. The taxable income includes salary, business profits, investments, and other sources of income.
The due date for filing income tax returns varies based on the type of taxpayer. For individuals, it is usually July 31st of the assessment year, while for businesses and corporations, it may differ.
Income tax slabs are revised periodically by the government. Typically, they categorize taxpayers based on income ranges, with progressive tax rates applied to higher income brackets.
Under Section 80C, individuals can claim deductions up to ₹1.5 lakh for investments in instruments like PPF, EPF, life insurance, tax-saving FDs, and ELSS mutual funds.
Yes, tax benefits are available under Sections 80C and 24(b) for home loan principal repayment and interest paid. Additional benefits exist for first-time homebuyers.
TDS is a mechanism where tax is deducted at the source of income before it is paid to the recipient. It applies to salaries, rent, interest, and other payments.
Taxpayers can check their income tax refund status through the Income Tax Department’s official portal using their PAN and acknowledgment number.
Failure to file a tax return on time can result in penalties, interest on the outstanding tax amount, and legal consequences.
Advance tax is paid by individuals and businesses whose tax liability exceeds ₹10,000 in a financial year. It is paid in installments before the financial year ends.
Gifts received from relatives are tax-exempt, but gifts from non-relatives above ₹50,000 in a financial year are taxable under ‘Income from Other Sources’.
Capital gains tax applies to profits earned from the sale of assets like real estate, stocks, and bonds. It can be short-term or long-term based on the holding period.
Some income sources like agricultural income, gifts from relatives, and interest from PPF are tax-free under specific conditions.
House Rent Allowance (HRA) allows salaried individuals to claim tax deductions on their rent payments, subject to certain conditions.
The old tax regime allows deductions and exemptions, whereas the new tax regime offers lower tax rates but removes most deductions.