Income and Taxes

A comprehensive guide for the page will be available soon.

Income and taxes are fundamental aspects of filing your income tax return (ITR) in India. Here's a breakdown of their roles:

Income:

• Refers to all the money you earn during a financial year (April 1st to March 31st of the following year).
• Income for tax purposes can come from various sources, including:
  • Salary
  • Business income
  • Interest income
  • Capital gains (profits from selling assets)
  • Rental income
  • Other sources (lottery winnings, etc.)

Taxes:

• Represent the portion of your income that you are required to pay to the government.
• The amount of tax you owe depends on:
  • Your total income: India has a progressive tax system, where tax rates increase as your income rises.
  • Deductions and exemptions: You can claim certain deductions and exemptions to reduce your taxable income. These deductions might include expenses related to investments, medical bills, home loan interest, etc.
  • Tax regime: You can choose between the Old Tax Regime (with deductions) or the New Tax Regime (with lower tax rates but fewer deductions).