Income Tax

In layman’s language, a certain percentage of an individual’s income or a gain that is to be paid to the government is known as Income Tax. Under the Indian Income Tax Act, tax is levied on individuals on all types of income which includes salary income, business income, trading income, rental income, interest income, dividend and lottery or betting income. Further, income tax is also levied on capital gains, defined as profit on the sale of any physical assets such as real estate, car, gold or financial assets such as shares, bonds, and debentures.
India follows a progressive or income slab based taxation system, which means that as the taxable income increases, the tax rate also increases. While, Indian Government has increasingly widened the scope of Income Tax, it has also ensured that it gives due tax deductions and exemptions to individuals based on their income levels, occupation and to encourage savings and investments. Every year, the Governments in its Annual Budget announces changes in the Income Tax provisions to address the demand of its citizens keeping in mind the fiscal condition of India.
It is extremely important for any income earning citizen to keep himself abreast of existing provisions of Income Tax. Check out this section at MyLoanCare to know the latest changes in Income Tax Act.

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