services
Income Tax
Overview
Income tax is a direct tax levied by the government on an individual’s or entity’s earnings. It is a critical component of the country’s revenue system, funding public services and development initiatives. Individuals, businesses, and other taxable entities are required to file income tax returns annually, reporting their income and paying taxes based on applicable rates and slabs.
Key Features :
Applicable to All Earnings :
Income from salary, business profits, property, investments, and other sources.
Progressive Tax Structure :
Higher income attracts higher tax rates, ensuring equitable contribution.
Mandatory Compliance :
Filing income tax returns is obligatory for individuals and entities meeting specified income thresholds.
Tax Deductions and Exemptions :
Offers various deductions under Sections 80C, 80D, and others to reduce taxable income.
Types of Income Taxpayers :
Individuals :
Salaried and self-employed professionals.
Hindu Undivided Families (HUFs) :
A family unit with shared income.
Partnership Firms :
Taxed at a fixed rate on business profits.
Companies :
Corporate tax applies to domestic and foreign entities.
Trusts and Societies :
Taxed on income from charitable or other activities.