A brief introduction to Income Tax

A brief introduction to Income Tax

Income Tax in India is a direct tax on the income or earnings in a financial year.
 
The government can change the income slabs and tax rates every year in its Union Budget. Income does not only mean money earned in the form of salary.
The Government of India decides the rate of Income Tax and Income tax slabs.
For Income within the range of 2.5 lacs to 5 lacs there is a rebate at 5%.
Employee has option to choose between the tax calculation type i.e., Old Regime or New Regime.

Income tax slabs applicable for the financial year 2021-22
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The amount invested in tax-saving schemes is deducted from gross income, which reduces the amount of taxable income and benefits the taxpayer.
Income Tax is calculated for the entire year after including the Investment Declaration provided by the employee. It is then deducted equally throughout the year.
In case tax is deducted in excess, the employee can claim a refund from the Government by filing the returns.

For more, visit income tax website : click here