scorecardresearchTaxation – What is Income Tax?


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.