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Income Tax – An Overview

Income tax is a tax levied by the government on individuals' and entities' earnings. In India, income tax is governed by the Income Tax Act, 1961. This tax is collected based on the income earned by individuals, businesses, and other entities during a financial year. The tax amount varies according to the income slabs set by the government.

Legal Obligation: Paying income tax is a legal obligation for individuals and businesses whose income exceeds a certain threshold.
Source of Revenue: Income tax is a major source of revenue for the government and helps in funding public services like healthcare, infrastructure, and education.
Tax Slabs: Income tax is typically divided into different slabs, where higher incomes are taxed at higher rates.

Documents Required for Income Tax Filing


In order to file income tax returns in India, the following documents are generally required:

PAN Card of the Taxpayer

Aadhaar Card

Bank Account Details (for refunds)

Income Proof (Salary Slips, Bank Statements, etc.)

Deduction Proof (Investments, Insurance, etc.)

Tax Deducted at Source (TDS) Certificates

Income Tax Filing Timeline


The timeline for filing income tax returns generally varies from 15 to 45 days, depending on the complexity of the return and whether the taxpayer opts for manual or online filing. The due date for individual taxpayers is typically July 31st of the assessment year.

Frequently Asked Questions

What is Income Tax?

Income tax is the tax levied by the government on the income of individuals, corporations, or other entities. In India, the tax is calculated based on the income earned during the financial year, with higher income earning higher tax rates.

Is Income Tax Filing Mandatory for Everyone?

No, income tax filing is mandatory only for individuals whose income exceeds the minimum taxable limit. However, even if your income is below the taxable threshold, it is advisable to file returns for tax planning purposes or to carry forward losses.

What Happens if I Miss the Income Tax Filing Deadline?

If you miss the filing deadline, you may be subject to a late fee and interest charges. Additionally, you may lose the opportunity to carry forward certain deductions and losses. It is advisable to file as soon as possible to avoid penalties.