“Taxes are the due we pay for the privileges of membership in an organized society.”
The Tax we pay as an Income Tax is a Direct Tax, in which we are paying the tax and we are the sufferer of Tax. Income Tax is a certain percentage of our income that we have to pay regularly to the Government. The Income Tax is Govern by THE INCOME-TAX ACT, 1961. The Central Board of Direct Taxes (CBDT) is an important part of the Department of revenue. In Income tax, Income of Previous Year is assessed or taxed in succeeding year i.e., The Income of the Year 2016-17 is taxed or assessed in the Year 2017-18.
A person by whom any tax or any other sum of money is payable under the Income Tax Act is the Assesses. So, now the question is what is the definition of Person in the ACT?
Which is very simple the following seven types of units of assessment
Now the question is “What is the meaning of Income?”
According to the definition given u/s 2(24), Income includes:-
Now, the question arises at what rate? or how the tax is calculated?
The current Slab rates are as follows for financial year 2017-18,
|Income Slab||Tax Rate|
|Income up to Rs. 2,50,000*||No Tax|
|Income from Rs. 2,50,000 – Rs. 5,00,000||5%|
|Income from Rs. 5,00,001 – 10,00,000||20%|
|Income more than Rs. 10,00,000||30%|