Income Tax is a statute, authorized to lay the basis of tax payments in India. The act made for income tax describes all the guidelines for the tax liability. Based on the act, all citizens be it an individual, partnership firm, or a company of several people has to pay the tax amount as per income tax laws in the current tax slabs. If you have paid more amount as income tax, you can also file an income tax return and will get your extra amount within some days. It is best to calculate your tax payment by using a tax calculator.
Who all are liable for making tax payments in India?
- Individual
- Hindu Undivided Family (HUF)
- Body of Individuals or Firms
- Companies, either registered or not under the income tax companies act
- Association of People
How to do the computation of Gross Taxable Income?
- Income that is received, accrued, or deemed either from one country or more countries during the last year when tax has to be paid. Calculate your tax using an income tax calculator.
- Non-resident Indians who received, deemed, or accrued, or to be received or accrue income from India are also subjected to pay tax as per the provisions of the Income Tax Act, 1961.
Income Earned is categorized into the following heads as per the Income Tax Act:
Income earned from salary: Salary income is the total amount of money given to an employee as salary, which is paid or not. As per Section 17 of the Income Tax Act, salary is defined as ‘any amount received as a salary, perquisite, and profits instead of salary.
Income from House Property: The amount which is received as an actual rent or amount is received in the form of rent is need to pay tax on it because it is part of the income tax slab named as the house of the property.
Income from gains or profits of any kind of profession or business: gains or profits of any kind of profession or business carried out by the assessee during the last year’s income tax return.
Income on Capital Gains: A profit or gain which is earned by selling any asset is liable to pay tax under the heading of income from capital gains. The asset may be anything like property, jewelry, securities, or any other kind of work. Income from capital gains is divided into two categories named: Short-term capital gain and long-term capital gain. The tax return estimate is also applicable to all.
- Short term capital gain
This gain is earned from the short term capital gain asset and this is not holding by an individual for more than 36 months.
- Long Term Capital Gain
It is the profit earned by selling a long-term capital that is held by an individual for more than 36 months.
Income from other sources: Any income earned from the assesses is not chargeable for tax and comes under the category of income from other sources.