Income tax refers to the tax levied by the government for the purpose of

Income tax refers to the tax levied by the government

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Income tax refers to the tax levied by the government for the purpose of financing its various operations. The payment of income tax in India is done according to the provisions made under the Income Tax Act. According to the Indian income tax laws, income from the following sources is deemed taxable: Salaries Income from house property Profits and gains of business or profession Capital gains Income from other sources The tax rates in India vary according to the earnings of an individual and are referred to as income tax slabs. Generally, these income tax rates are revised every year during the budget. Income tax is calculated on an annual basis It is levied on the income earned in the previous year which is also known as the assessment year. In the eyes of the law, the financial year begins on the 1st of April in a given year and ends on the 31st of March of the following year. Income Tax Slab Rates Tax Slab for Individuals below 60 Years of Age: INCOME TAX RATE
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Tax Slab for Senior Citizens above Age 60 Years but Less Than 80 Years: Tax Slab for Senior Citize ns above 80 Years of Age: ITR Forms Income Tax Return is the form in which an assessed files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. Every Income Tax Return Form is applicable to a certain section of the Assessee. Only those Forms which are filed by the eligible Assessee are processed by the Income Tax Income up to Rs. 2,50,000 Nil Income between Rs. 2,50,001 - Rs. 500,000 10% of Income exceeding Rs. 2,50,000 Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000 Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000 INCOME TAX RATE Income up to Rs. 3,00,000 Nil Income between Rs.3,0,001 - Rs. 500,000 10% of Income exceeding Rs. 3,0,000 Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000 Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000 INCOME TAX RATE Income up to Rs. 5,00,000 Nil Income between Rs.5,00,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000 Income above Rs. 10,00000 30% of Income exceeding Rs. 10,00,000
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Department of India. It is therefore imperative to know which particular form is appropriate in each case. Income Tax Return Forms vary depending on the criteria of the source of income of the Assessee and the category of the Assessee. Types of ITR Forms: ITR 1 or SAHAJ : To be used by an individual whose total income includes: Income from Salary/Pension or Income from One House Income from Other Sources (excluding winnings from lottery & race horses) Exempt income except agricultural income exceeding Rs. 5000 However, if individuals have income from business, profession or capital gains then they cannot use ITR-1 to file their return. ITR 2:To be used by an individual whose total income includes: Income from Salary/Pension Income from more than One House Property Income from Capital Gains Income from Other Sources (including winnings from lottery & race horses) No income from business or profession Important Documents Form 16: Form 16 is a certificate issued under section 203 of the IT Act for tax deducted at source from salary. It is a detailed record of income tax deducted from the salary of the employee by the
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  • Fall '17
  • Mahvish ali

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