Income Tax

Income tax calculation

It is possible to calculate Income tax either manually or by using an online income tax calculator, which further simplifies the process. There are different tax slabs under income tax and individuals have to file their tax under their slab accordingly. For salaried employees, income from salary includes the basic pay, House Rent Allowance (HRA), Transport Allowance, Special Allowance and any other allowances. However, certain components of your salary are tax-exempt, like Leave Travel Allowance (LTA), reimbursement of telephone bills, etc. In case House Rent Allowance is part of your salary and you live in a rented house then you are eligible to claim exemption. Apart from these exemptions, there is a standard deduction of up to Rs.50,000.

Income Tax Payment Details

It is convenient to pay the Income Tax online through the official portal. The Permanent Account Number (PAN) or Tax Deduction and Collection Number (TAN) will have to be provided for validation as well.

About Income Tax Department India

The Income Tax Department of India is a government agency that undertakes the direct collection of tax. The Central Board of Direct Taxes handles its operations. It is easy to get information on international taxation, tax laws, and rules, organizational setup, etc., on the official website of the department for individuals.

Income Tax Act

Income Tax Act of 1961 governs all income tax provisions as well as any tax deductions that may be applicable. As a result of economic conditions and inflation, the law has been amended many times since its introduction.

Income Tax Rules in India

It is the legislature that enacts the Income Tax Act, 1961, which governs and administrates income tax in the country, and the Income Tax Rules, 1962, help to implement and enforce the Act’s provisions. It is necessary to read the Income Tax Rules in conjunction with the Income Tax Act, as well. Regulations under the Income Tax Act cannot override the provisions of the Income Tax Act.

Income Tax Refund 2020-21

Taxes paid in excess of your actual tax liability can be refunded if you have paid more than your actual tax liability. The additional Rs.5,000 deducted by your employer if your TDS liability for FY 2019-20 is Rs.35,000, can be refunded to you. You can also claim an income tax refund in case you forgot to declare your tax-saving investments and tax has been charged to you without considering your deductions. Individuals can check income tax refund status on the official website of Income Tax Department.