Tax Information Centre, a Taxsmile.com initiative, brings answers to all your tax queries through its resourceful write-ups on common questions around Filing Individual IT Returns in India.

As you are aware, the Income tax provisions change year on year and sometimes the changes happen at the interim budget too. All the blog contents are mentioned with respect to particular assessment year.  Financial Year (FY) 2019-2020 is called as Assessment Year (AY) 2020-2021. This convention needs to be kept in mind when you read the years through the blog.

Every person who earns / gets income in India is subject to Income Tax. There are certain basic limits of exemption, which is 0% slab. Even the non-residents are chargeable to Income Tax. Your income could be salary, or from savings bank account, or renting of house, or pension. The law of the land classifies the income into Income from Salaries, Income From House Properties, Income From Business/Profession, Income from Capital Gains, and Income from Other Sources (like bank interest, or lottery, etc). There are also certain additions which may need to be made like clubbing of spouse income or clubbing of minor children income.

Not that all the income earned is chargeable to tax. There are several deductions which can be made in the form of exemptions, standard deductions, local taxes paid, etc. Even the losses from business, or capital gains (sale of assets) are also allowed for reduction. The interest paid on housing loan is also deductible under certain provisions.

Based on prevailing tax rates, the taxes are calculated. Most of the taxes are calculated & deducted by employers, who remit tax to government in the form of TDS. However, Individuals are liable to estimate their tax liability and pay the differential tax, if any.

We are here to help you with loads of information for your tax journey and make the filing simple.  Taxsmile.com, a registered e-Return Intermediary with Income Tax Department, serving Customers in filing of Income Tax Returns online since 2007!!