Filing an income tax return is necessary for all Indians. Income tax is a percentage of your income that you pay to the government for expenditure on infrastructure, salaries of government employees, and other expenditures incurred by the government. Tax is charged on income from the below-listed categories: salaries, income from house properties, profits or gains from profession or business, capital gains and income, and many more.
What are the income tax rates?
Those who are having an income above Rs. 5 lakhs a year are considered to pay income tax to the government on their earnings between April 1- March 31. The amount you have to pay in tax depends on which income tax category you belong to.
The main categories of income tax are Individuals and Business Entities.
- Individuals (male and female below the age of 60 years) and HUF.
- Senior Citizens – Individuals (male and female between 60-80 years)
- Super Senior Citizens – Individuals above the age of 80 years
This includes cooperative societies, local authorities, domestic firms, and foreign companies, etc.