Introduction To Income Tax

Income Tax,

Many of the teacher teach the subject but they do not make the student understand the purpose behind this subject. The main aim of this subject is to calculate your income that is earned in a year instead of how to calculate and pay tax.

If you do not know how to calculate your income on which tax will be levied and suppose if you calculate income which is not taxable, you will end up paying excess tax. Also if you calculate your income on the lower side, it is possible that you might get a notice from Income Tax Dept. for paying the balance tax along with interest and penalty. In both the above scenario, its a loss to the person paying tax.

The Income is classified under the following heads:

1) Income from Salaries

2) Income from House Property

3) Profits & gains from Business & Profession

4) Capital Gains Income

5) Income from Other Sources.