Google trend - Income-tax

Income-tax - 10 things to know with detail

• Income Tax Basics: Income tax is a tax imposed by the government on the income of individuals and businesses. It is a direct tax that is levied on the income earned by individuals and businesses in a financial year.
• Taxable Income: Taxable income is the amount of income that is subject to taxation after deductions and exemptions. It includes income from all sources such as salary, wages, rental income, interest income, capital gains, and profits from business.
• Tax Slabs: Income tax is calculated based on tax slabs, which are predetermined rates at which income is taxed. The tax slabs vary depending on the income level of the individual or business. The tax rates are progressive, meaning that higher income levels are taxed at higher rates.
• Deductions and Exemptions: Individuals and businesses can reduce their taxable income by claiming deductions and exemptions. Deductions are expenses that can be subtracted from the total income, such as investments in certain schemes or payments for insurance premiums. Exemptions are amounts that are not subject to tax, such as certain allowances and benefits.
• Filing Income Tax Returns: Individuals and businesses are required to file income tax returns with the government on an annual basis. This involves declaring their total income, claiming deductions and exemptions, and paying any tax due.
• Due Dates: The due dates for filing income tax returns vary depending on the type of taxpayer. Individuals are generally required to file their returns by July 31 of the assessment year, while businesses have different due dates based on their financial year.
• Penalties for Non-Compliance: Failure to file income tax returns or pay taxes on time can result in penalties and fines imposed by the tax authorities. These penalties can vary depending on the severity of the non-compliance.
• Advance Tax: Advance tax is a system of paying tax in installments throughout the year, rather than in a lump sum at the end of the financial year. Individuals and businesses with certain income levels are required to pay advance tax to avoid penalties.
• Tax Deducted at Source (TDS): TDS is a system where tax is deducted at the source of income, such as salary, interest, or rent. The deductor is required to deduct tax at the prescribed rates and deposit it with the government on behalf of the taxpayer.
• Tax Refunds: If the total tax paid by an individual or business is more than the tax liability calculated, they are entitled to a tax refund. This refund is issued by the tax authorities after processing the income tax return.