User
Notification
Business Standard

Don’t miss the latest developments in business and finance.

Bs_logoimage

Income tax

About Income tax

Facebook IconLinkedIN Icon

What is Income tax

Income tax is a direct tax that a government levies on the income of its citizens. The Income Tax Act, 1961, mandates that the central government collect this tax. The government can change the income slabs and tax rates every year in its Union Budget. 
 
Income does not only mean money earned in the form of salary. It also includes income from house property, profits from business, gains from profession (such as bonus), capital gains income, and 'income from other sources'. The government also often provides certain leeway such that various deductions are made from an individual's income before the tax to be levied is calculated. 
 
Income Tax Returns
 
Income Tax Returns (ITR) form are the basis of calculating a person's income tax. It is a statement showing the status of a person, all their sources of revenue, deductions and, lastly, the tax payable or tax refund, if any. 
 
Income Tax slabs
 
What income tax rate a person pays depends on the slab they fall in. The government has categorised incomes into slabs like — up to Rs 250,000, Rs 250,000-Rs 5,00,000, Rs 5,00,000-Rs 1 million, and more than Rs 1 million. The rates on different slabs might be different based on age groups.
 
Standard deduction
 
Tax on some components of income can be waived by the government. These tax reliefs are known as standard deductions.

Latest Updates on Income tax

Unit Linked Insurance Plans (ULIPs) with annual premiums exceeding Rs 2.5 lakh will now be subject to long-term capital gains (LTCG) tax at a rate of 12.5%, effective from April 1, 2026

Updated On: 03 Feb 2025 | 1:58 PM IST
Bs_logoBudget 2025: All the latest tax rates and holding period for all assets

The government on Saturday said the old tax regime will continue. But with the changes announced in Budget 2025, does it still make sense to use it?

Updated On: 03 Feb 2025 | 1:07 PM IST

The Budget proposes revised slabs and rates, which Sitharaman said would reduce the tax burden on the middle class, allowing for greater disposable income

Updated On: 03 Feb 2025 | 9:56 AM IST

Budget 2025 Highlights: The Budget is likely to be positive for sectors like FMCG, Auto, consumer durables, EVs, Battery, Travel and Retail

Updated On: 03 Feb 2025 | 9:25 AM IST

Agrawal discussed a range of topics, including framing of tax proposals, and why he feels most taxpayers would opt for the new tax regime

Updated On: 03 Feb 2025 | 12:28 AM IST

In her post Budget press conference, Nirmala Sitharaman said that an additional one crore taxpayers will pay no tax post her announcement. Here's how

Updated On: 02 Feb 2025 | 1:45 PM IST

Budget 2025 brings key tax, insurance, and investment changes. From ULIP taxation to NPS benefits and Kisan Credit Card updates, here's a breakdown of FAQs to help you understand the new provisions

Updated On: 02 Feb 2025 | 12:36 PM IST

Former Finance Minister P Chidambaram accused the government of favouring taxpayers and voters in Bihar in Union Budget 2025

Updated On: 02 Feb 2025 | 10:02 AM IST

Our Editorial comment and columnists dissect the Union Budget 2025 to see what makes it tick, and what doesn't

Updated On: 02 Feb 2025 | 6:15 AM IST

Anticipating US action on tariffs, India seems to have made the first move by revamping its tariff structure by reducing the slabs to eight rates

Updated On: 01 Feb 2025 | 11:48 PM IST

FM Sitharaman targets FY26 fiscal deficit at 4.4% of GDP

Updated On: 02 Feb 2025 | 4:25 PM IST

This was an opportune moment to get rid of the old tax system entirely and move fully to the new one. A broad-based, low-rated, and less differentiated tax structure is the need of the hour

Updated On: 01 Feb 2025 | 11:43 PM IST

The regret about this Budget is that it once again shies away from renewing its commitment to strategic disinvestment

Updated On: 01 Feb 2025 | 11:32 PM IST

Share of middle class in income tax increased till 2023-24 while TDS has been rationalised by reducing the number of rates and adjusting threshold limits

Updated On: 02 Feb 2025 | 12:30 AM IST

Old tax system remains unchanged

Updated On: 01 Feb 2025 | 10:38 PM IST

Securities sales to attract capital gains tax, not business income tax

Updated On: 01 Feb 2025 | 6:54 PM IST

India's economic growth is expected to slow to a four-year low this fiscal year due to weak demand, particularly in urban areas where the cost of living has soared

Updated On: 01 Feb 2025 | 5:21 PM IST

Budget 2025: Stills from movies like Krrish, Welcome, and television series were being shared widely to encapsulate the sentiment of the taxpayers

Updated On: 01 Feb 2025 | 4:29 PM IST

The reforms are part of the Government's broader strategy to stimulate consumption, enhance ease of doing business and boosting economic growth

Updated On: 01 Feb 2025 | 3:44 PM IST

No tax on income up to ₹12 lakh, revised tax slabs, senior citizen benefits, and homeowner relief announced by FM Nirmala Sitharaman to ease the financial burden on the middle-class

Updated On: 01 Feb 2025 | 3:00 PM IST