Income Tax
Income tax is a levy imposed by the Indian government on the income earned by individuals and businesses. It is a significant source of revenue for the government, contributing to public infrastructure, development initiatives, and social programs.
Who is Liable to Pay Income Tax in India?
Individuals and businesses whose annual income exceeds a certain threshold are liable to pay income tax. These thresholds are revised periodically by the government and depend on factors like age, tax residency status, and income source.
Types of Income Tax
- Individual Income Tax:Applicable on various income sources such as salaries, business income, capital gains, and rental income.
- Company Income Tax:Levied on the profits earned by companies and other business entities.
Tax Rates and Brackets:
Income tax rates in India are progressive, meaning they increase as your income rises. The current tax brackets and rates can be found on the official website of the Income Tax Department of India
Filing Income Tax Returns:
Individuals and businesses exceeding the specified income threshold are mandated to file income tax returns with the Income Tax Department. The deadline for filing returns typically falls in July or September each year.
Understanding Tax Deductions and Exemptions:
The Indian tax system offers various deductions and exemptions that can significantly reduce your tax liability. These deductions are available for investments, expenses incurred for specific purposes, and contributions to charity. Consulting a tax professional or utilizing an online tax filing platform can help you understand and claim these deductions to optimize your tax burden.
SAKH & Associates offers expert consultancy to Corporate, Foreign Companies, individuals (both resident and non-resident), partnership firm who are liable to pay tax according to the Indian tax legislation. We are also dealing in filing income tax for various category of persons under the Indian Income Tax Act. Service that we are offering:
- Preparation of return
- Tax Assessment before authorities in India
- Consultancy in Tax matter and Tax planning
- Transfer Pricing Matters
- Withholding Tax Compliance
- Income Tax Appeal before CIT(Appeals) and ITAT
