Income tax of India has been levied on all the professions. This is the tax which is levied on working class of the state. Any individual who earns a living is supposed to pay a specified amount of tax according to what he earns. This amount is specified according to the amount on income earned. If the income of a person is more, he is supposed to pay a bigger percentage of tax. However, if the income is less, the tax is less too. This income makes a large part of the revenue of the state. This income tax is levied on all professions in India except for agriculture. Agriculture is spared from these taxes as this profession is not that developed. However all other professionals are supposed to pay their specified income tax otherwise they may be fined for it. The following acts and rules have specified the amount of taxes that are supposed to be paid by individuals and firms: |
The income tax act of 1961 Income tax rules of 1962 Annual finance acts Judicial pronouncements of Supreme Court
Income tax in India is the biggest contribution towards the mobilization of the total revenue of the state of government. There is a special department in India which takes care of all the taxes, collects it and sends it to the government. This department is under the Finance ministry of India. The collected income taxes in India are in hundreds of billions which keep on increasing by the years. Almost eighteen percent of the total revenue is collected from direct income tax.
According to historic records, income tax was introduced to the public in 1860. After a couple of years, it got abolished because people weren’t satisfied that they had to pay some amount of their incomes. But afterwards, it was reinforced again as the government noticed its importance in terms of the total revenue of the state. When the taxes are paid, they are supposed to have a record so that the ministers know which people have paid the taxes and which are left. These records are very important and need to be secured. online itr filing is done through which these taxes are kept in records. This process means that the taxes paid are secured digitally i.e. in document files and the ministers from finance ministry have their signatures incorporated in these documents digitally as well. Since everything these days has become digital, it is easier to email these records to each other and keep them safe in flash drives or in other online sources. With the help of this online filing, the people can get the filing done through softwares as well. This means, they wouldn’t have to red all the records, rather they could have the software do it. Income tax of India is now being taken care of via the internet. This lets the people save priceless time and money. Furthermore, when the job is being done by the software, less people spend their minds on it. Since the country is progressing day by day, it is developing in every field whether it is the income tax field or any other.
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