Income Tax & TDS

Income Tax & TDS

Income Tax and Tax Deducted at Source (TDS) are both related to the taxation system in India. Here's an overview of these concepts:

Income Tax: Income tax is a direct tax levied on the income earned by individuals, companies, or other entities. It is imposed by the Central Government of India based on the provisions of the Income Tax Act, 1961. Here are key points related to income tax:

• Applicability: Income tax is applicable to individuals, Hindu Undivided Families (HUFs), companies, partnerships, and other entities based on their income levels and nature of income.
• Income Categories: Income is categorized into various heads such as salary, house property, business or profession, capital gains, and other sources. Each head has its own rules for computation and taxation.
• Income Tax Slabs: Income tax rates are structured into slabs based on the income earned. These slabs may vary from year to year. The tax rates are progressive, meaning the higher the income, the higher the tax rate applicable.
• Deductions and Exemptions: The Income Tax Act provides various deductions and exemptions that reduce the taxable income. Examples include deductions for investments made under Section 80C, deductions for medical expenses, and exemptions for certain allowances.
• Income Tax Return (ITR): Individuals and entities earning income beyond specified thresholds are required to file an Income Tax Return (ITR) with the Income Tax Department. The ITR provides details of income earned, deductions claimed, and tax liability.

WHAT WE DID

These headings should help you delve deeper into specific aspects of Income Tax & TDSs and provide a more comprehensive understanding of the topic.