Basics of Income Tax for Beginners
Tax in India: In India Taxes are categorised into two types i) Direct Tax and ii) Indirect Tax i) Direct Tax: Direct Tax is a Tax you pay on your income directly to the Government eg: Income Tax ii) Indirect Tax: Indirect tax is a tax that someone else collects on your behalf and pays to the Government eg: Restaurants collects GST from you and pay to government on behalf of you. Income Tax: Everyone who earns/gets an income in India is subject to Income Tax. In simple Income Tax Department has classified all the income into five heads: Head of Income Nature of Income Covered Income from Salary Income from salary and Pension are covered here. Income from House Property Income by way of House rental Income from Business and Profession Self-Employed, Freelancer, consulting or when you run a Business and Doctors, Chartered Accountants, Lawyers etc who have their own prac...
