• The Income Tax Department is a government agency undertaking direct tax collection of the Government of India. It functions under the Department of Revenue of the Ministry of Finance.
  • It is the Tax which is directly levied by Central Government on the Income earned by the individuals or a Hindu Undivided Family or Corporate (Companies) assessee.
  • In India types of Taxpayers are:
  1. Companies;
  2. Partnership Firms includes LLP;
  3. Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI).
  • Income Tax Department is headed by the apex body Central Board of Direct Taxes (CBDT).
  • Every Taxpayer need to report their income to the Government of India by filing of Income Tax Return (ITR).
  • The Income Tax Department describes income into five heads:
  1. Income from Salary;
  2. Income from House Property;
  3. Income from Capital Gains;
  4. Income from Business and Profession;
  5. Income from Other Sources.
  • It includes various types of Tax and Slab rates for the corporate and non-corporate assessee.
  • Currently According to Income Tax laws, it is mandatory for every individual to file ITR if your income exceeds the basic exemption limit. The basic exemption limit depends on the age of the individual which are as follows:
S. N. Particulars Basic Exemption Limit (in Rs.)
1

Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year. Under this also covered HUF/AOP/BOI/Any other Artificial Juridical Person

 2,50,000/-
2

Individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year

 3,00,000/-
3

Individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year

 5,00,000/-

Income Tax Rates:-

Please refer the below link to know Income Tax rates:

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Income Tax Returns:-

Types of Forms Description
ITR-1 For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5 thousand(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR-2 For Individuals and HUFs not having income from profits and gains of business or profession
ITR-3 For individuals and HUFs having income from profits and gains of business or profession
ITR-4 For Individuals, HUFs and Firms (other than LLP) being a Resident having Total Income upto Rs.50 lakhs and having income from Business and Profession which is computed under sections 44AD, 44ADA or 44AE
(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)
ITR-5 For persons other than:-
(i)Individual,
(ii)HUF,
(iii)Company, and
(iv)Person filing Form ITR-7
ITR-6 For Companies other than companies claiming exemption under section 11
ITR-7 For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D)