What is Income Tax, Income Tax Slab For FY 2017-18, e-Filing Process

Income Tax Basics : What is Income Tax in India

Proceeding with the Indian Income Tax, under this tax rule every earned, as well as, unearned income is subject to a levy of an annual tax under the rule of Income Tax. Here, earned income includes salary, wage or commission earned. Unearned income would mean interests earned on investments or dividends received. Tax levied as per pre-decided percentage on the net taxable income which needs to be deposited at the end of Department. In India, to keep parity between the income by different class of people and tax paid, an Income Tax slab is issued with different rates of taxation for different income group. It begins with 0% or NIL taxation and eventually leads up to 30% of tax levied on net taxable income. For the calculation of taxable income, tax practitioners consult the provisions of Income Tax 1961, which clearly mentions the do’s & don’ts. Each year, after Budget is being discussed by the Houses of Government, where it presents with the tentative changes or updation of tax provisions, notifications and circulars are issued to the general public for calculation of taxes for that Financial Year. 

Income tax slabs in India for Latest Tax Rates

How to Compute Income Tax:

Computation of income tax or, any other Direct Tax requires detailed knowledge of the provisions of the tax laws as outlines by the CBDT. There are several tax modules which need careful studying before you can take up the job of calculation of taxes. At Taxmann, we offer the largest online legal database of taxation and corporate laws. Upon subscription, you are able to access the largest repository of legal data comprising Acts, Commentaries, Notifications, and Case Laws pertaining to Income Tax, Company Law, Indirect Taxes, Accounts & Audits, and International Taxation.  

Calculate your Income Tax with Taxmann Income Tax Calculator

For salaried individuals there is a provision of determining Income Tax online through Tax Calculator Tools available on Taxmann.com. All you need is to fill in the details as mentioned in your income receipts or salary slips issued by your employer.

Filing your Income Tax Return

Every year, after one has paid its taxes there has to be a return filed with the Department where it has to be declared that as per the taxable income of the year, proper care has been given to pay the accurate amount of tax calculated for that. So, if your income is over ₹2.5 lacs per annum, then you have to file a return either electronically or otherwise, to prove that you have earned throughout the past year and have accrued a rate of tax, however if it is NIL or 0%. If you have paid any extra amount of tax, then that gets refunded back to the taxpayer’s account from the Department’s end. For a complete Income Tax guide, visit our bookstore and check out Taxmann’s Online Module which comprises an all-inclusive database.

Also Read: 

• Income Tax Slab Rate for AY 2020-21

• Tax Rates for AY 2018-19

• Income Tax Slab for AY 2017-18