Indian Income tax is a part of your income that you have to pay regularly to the government. You pay income tax every month on your earnings.
You pay income tax on all your earnings, not just your salary. Income tax is a part of your income that you have to pay regularly to the government.
Everyone who earns or gets an income is subject to Indian Income Tax in India. This applies for a resident or a non-resident of India as well.
Income could be from the salary that you earn or pension that you acquire after retirement.
It is treated under this head of income as per the Income-tax department.
Income from savings bank account interest, fixed deposits.
This is income from property rent that you receive.
Income from sale of a capital asset such as mutual funds and shares.
This type of income is when you are self-employed or when you run your business. Apart from business owners, CAs, lawyers, and doctors who have their own practice also come under this category.
Salaried individuals can file their income tax returns basis their Form 16. Most of their income details are mentioned in Form 16 issued by their employers.
There are different documents required for tax filing that need to be kept ready before you file your taxes. These include Form 16, Form 16A, investment receipts, and proofs.
Incomes are grouped according to Income and age. Each Tax Slab has a different tax rate.
| Taxable income | Tax Rate |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
| Taxable income | Tax Rate |
| Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,000 - Rs. 5,00,000 | 5% |
| Rs. 5,00,000 - Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
.
| Taxable income | Tax Rate |
| Up to Rs. 5,00,000 | Nil |
| Rs. 5,00,000 - Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Usually, most Companies collect the tax saving proofs from their employees by January 15th and while processing the salary from January to March the tax will be recalculated as per this actual proof submitted.
The deadline for filing Individual Income tax returns is 31st of July every year.
| Type of capital asset | Holding Period | Tax Rate |
| House Property | · Holding more than 24 months
· Holding less than 24 months
|
· 20%
· Depends on slab rate
|
| Debt mutual funds | · Holding more than 36 months
· Holding less than 36 months
|
· 20%
· Depends on slab rate |
| Equity mutual funds | · Holding more than 12 months
· Holding less than 12 months
|
· Exempt
· 15%
|
| Shares | · Holding more than 12 months
· Holding less than 12 months |
· Exempt
· 15%
|
| FMPs | · Holding more than 36 months
· Holding less than 36 months
|
· 20%
· Depends on slab rate
|
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