What is Income Tax?
Income tax is the tax that individuals, Hindu Undivided Family (HUF) or any taxpayer other than companies, pay on the income they receive in a financial year. The tax rate depends on the quantum of earnings – actual and notional. The Government of India decides the rate of income tax as well as income tax slabs on which individuals are taxed. Taxable income slabs change from time-to-time, depending on the government’s policies. The Government also provides income tax rebates and incentives to save taxes.