NEW DELHI:
Income tax is a tax levied directly on the income of an individual/organisation/business by the government for the purpose of financing its various operations.
There are two types of income tax - direct tax and the newly launched Goods and Services Tax (GST) which subsumed all other indirect taxes such as VAT, service tax, excise etc.
Income tax collected by government is not only used for various government schemes but also acts as a fiscal stabilizer that aid in distributing wealth evenly among the population.
According to the Income Tax Act of India, income from the following sources is considered taxable:
1) Income from salary
2) Income from house property
3) Income from profits and gains of business or profession
4) Income from capital gains
5) Income from other sources
The tax rates in India vary according to the earning of an individual, also known as Income Tax Slab. The government revises
Income Tax Slab
every year during Budget Session of Parliament.
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