Income tax is an authorized organization which comes under tax payments in India. This act is made in India so that every individual can pay the tax amount based on all tax liability. If you have paid more amount as a tax amount, then you can apply for a refund and your extra amount will be returned to you. One of the best solutions is to calculate the tax amount is a tax calculator.
Who all comes under the tax paying category in India?
- Individual
- Association of People
- Hindu Undivided Family (HUF)
- Companies, either registered or not under the income tax companies act
- Body of Individuals or Firms
How to compute the Gross Taxable Income?
- Calculate your income tax amount using an income tax calculator. Such income that is accrued, received, or deemed may be from one country or more countries during the last financial year when tax has to be paid.
- Non-resident or non-citizens of India who have received, deemed, or accrued, or to be received or are about to accrue income from India are also have to pay tax given in the act of income tax act 1961.
Different categories Under which salary and other income come to pay income tax based on the Income Tax Act:
Income earned from salary:
Income Tax Act section 17 defines that salary is defined asany amount of money that is received as a prerequisite,salary, and profits instead of salary. The definition of salary income is given as the total amount of money given to an employee as salary from an employer either which has been paid or not.
Income from Property or House: The amount of money that is received as an actual amount or rent is received in the form of rent and their needs to pay tax on such kind of income. House or property tax comes under the income tax slab and pay tax on such kind of income.
Income on Capital Gains: An income or profit or gain which is earned through an asset that is under the category of paying taxes and comes from the capital gains. Such assets may be securities, jewelry, property, and other kind of work. Income from the capital gain is categorized into two categories which are long term capital gain and short term capital gain. A tax return estimate applies to all kinds of capital gains.
- Short term capital gain – The capital gain is earned from the short term asset. Short term assets are not holding by an individual for more than 36 months.
- Long Term Capital Gain – A capital gain or profit earned by selling long-term capital assets that are held by an individual for more than 36 months.
Income from another kind of source: Income that is earned from the assesses is not chargeable for income tax and comes under the category of income from other sources. The income tax act reveals that another source of income is not able to give income tax.
