Tax Evasion Information Board

Up to Rs 2.5 Lakh: No tax payable
Rs 2.5 Lakh to Rs 5 Lakh: 5% tax applicable
Rs 5 Lakh to Rs 10 Lakh: 20% tax applicable
Above Rs 10 Lakh: 30% tax applicable

Overview of Income Tax Laws

The Income Tax Act of India is a comprehensive statute that governs taxation in the country. Below are some important details.

Note: There are additional provisions like rebates, exemptions, and deductions available for taxpayers under sections like 80C, 80D, and others.

Salary Income: Income received from an employer for services rendered.
Business Income: Income earned from a business or profession.
Capital Gains: Income earned from the sale of assets like property, shares, etc.
Other Sources: Includes income from rental property, interest on savings, etc.

Note: Income is classified into 5 heads as per the Income Tax Act.

Section 80C: Deduction up to Rs 1.5 Lakh for investments in life insurance, PF, PPF, etc.
Section 80D: Deduction for premiums paid for health insurance policies.
Section 80G: Donations to charitable institutions and organizations.

Note: The deductions can reduce the total taxable income, resulting in lower tax liability.