Income Tax
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Income Tax in India includes all income except the agricultural income that is levied and collected by the central government. This particular income is also shared with the states. The Income Tax was incorporated in India from the year1860. However, after many alterations, finally with the Indian Income Tax Act, 1922, there was a revolutionary change brought by the All India Income Tax Committee. This is significant as after this the administration of the Income Tax came under the direct control of the Central Government. This Act got amended again in the year 1961, and the present Income Tax regime in India is still following the provisions of the Act of 1961.
As per the Income Tax Act 1961, the assessee whose total income level is more than the maximum exemption limit, are under the domain of chargeable Income Tax. The assessee has to pay the Income Tax at the rates stated in the provisions of the Finance Act. The payment of the Income Tax is to be calculated on the total income of the last year in the relevant financial assessment year. For the determination of the total income of an individual the residential status in India is a necessary parameter. Every Income Tax payer should file Tax Return under the existing law.
The taxable income of the assessee is sorted and computed under five categories known as the Heads of Income. The best citizen should not defer the payment of the Income Tax and must pay the tax in advance as such deferment would involve payment of an extra interest to the Income Tax Department of India. Generally, the person paying the Income Tax should clear their dues at the latest by 31 March. The Income Tax payments are paid in the sort of TDS or Tax deducted at source, TCS or Tax collected at source, and Advance Tax.
The TDS is the Income Tax that is subtracted at the beginning of income by the employer or the taxpayer to pay to the government, following certain limitations and conditions. This encompasses various types of income like -
The Income Tax paid by the income earner during the previous year of the assessment year is known as the Advance Tax. The total income for the year is estimated and then this tax is computed, after the surcharge is calculated and considering the available rebate on the tax. This Income Tax is paid in three installments. In case the payment of total amount of advance tax is not paid on or before the 15 March then 1% interest will be charged for one month.
The taxable income of the assessee is sorted and computed under five categories known as the Heads of Income. The best citizen should not defer the payment of the Income Tax and must pay the tax in advance as such deferment would involve payment of an extra interest to the Income Tax Department of India. Generally, the person paying the Income Tax should clear their dues at the latest by 31 March. The Income Tax payments are paid in the sort of TDS or Tax deducted at source, TCS or Tax collected at source, and Advance Tax.
The TDS is the Income Tax that is subtracted at the beginning of income by the employer or the taxpayer to pay to the government, following certain limitations and conditions. This encompasses various types of income like -
- Salary
- Interest
- Commission and contract fees
- Rent
- Professional fees
The Income Tax paid by the income earner during the previous year of the assessment year is known as the Advance Tax. The total income for the year is estimated and then this tax is computed, after the surcharge is calculated and considering the available rebate on the tax. This Income Tax is paid in three installments. In case the payment of total amount of advance tax is not paid on or before the 15 March then 1% interest will be charged for one month.
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