Everyone who earns or gets an income is subject to Income Tax in India. This applies to a resident or a non-resident of India as well. Income could be from the salary that you earn or pension that you acquire after retirement. The tax rate for lowest-income slab slashed to 5% from 10%, a surcharge of 10% slapped on income above Rs 50 lakhs.
As per the Income Tax Department breaks down income into five heads
Income from Salary – Income from salary or pension is treated under this head of income as per the Income Tax Department.
Income from Other Sources – Income from savings bank account interest, fixed deposits etc.
Income from House Property – This is income from property rent that you receive.
Income from Capital Gains – Income from sale of a capital asset such as mutual funds and shares.
Income from a business profession – This type of income is when you are self-employed or when you run your business. Apart from business owners, CAs, lawyers, and doctors who have their own practice also come under this category.
Tax provisions are very needed to be aware which offers a variety of strategies for minimizing the taxes and filing the returns.