Different Variants of Income Taxes in India

Income tax is a type of tax that governments impose on income generated by businesses, and individuals within their jurisdiction. This could These taxes are used to fund public services, pay government obligations, and provide goods to the citizens. 

Taxes in India can broadly be classified into:

• Direct Tax: This is a tax that you pay directly to the government. These can further be categorized into:
• Income Tax: This is the amount an individual or a Hindu Undivided Family or a taxpayer pay on the income received. The law prescribed the rate at which such income should be taxed.
• Corporate Tax: This tax is paid by the companies on the profits they make through their businesses. The law here also, prescribe a specific rate of tax for corporates in India.  

• Indirect Tax: It is an indirect way of paying the tax to the government through third party means like restaurants, theatres, e-commerce websites etc. The various means where we pay indirect taxes are:
• Service tax on restaurant bills and movie tickets
• VAT on goods such as clothes and electronics
• Now GST has been introduced as a unified tax in place of all the indirect taxes

Read More: Types of ITR Forms in India

Talking about the various types of income taxes in India are:

• Income from salary/pension: This includes basic salary, taxable allowances, perquisites, and profit in lieu of salary, as well as pension received by the retired person. Incomes from salary and pension are included in the computation of taxable income.

Read More: How to file income tax return online for salaried employee?

• Income from business/profession: This includes actual and presumptive incomes from businesses and professions that individuals do in their personal capacity.

• Income from house property: Under this head, the owners are bound to pay income tax for the property/properties they own. They can be self-occupied, rented or vacant. An income tax assessee can claim certain deductions such as municipal taxes and a standard deduction for house maintenance in certain cases. Therefore, the final net income or loss under this head is then added to or deducted from the income from the other heads. 

• Income from other sources: This segment includes income from interests of saving account, fixed deposits, family pension, etc. 

• Income from lottery, betting, racing etc

• Capital gains: These arises at the time of selling capital assets like gold, house properties, stocks, securities, mutual fund units etc. These are part of the taxes but added to the taxable income.

As there are different clauses and calculations for every type of income tax, it is always better to hire professional help for paying the right amount of taxes to the government. One name that has made a name for itself in terms of finance, e-Governance, Insurance and Healthcare verticals is Alankit Limited. With its headquarters in Delhi, it is a premier integrated service provider known for its innovative solutions in all the stated verticals. The company is a registered e-return intermediary offering reliable and professional ITR filing services. It offers professional services for income tax returns e-filing across India.

Alankit and its team of professionals and experts help the clients with the ITR filing in the most hassle-free and easy manner. Visit its website for more information and guidance for the process to make your life stress-free and disciplined. 

Read More: Online Income Tax Payment How To Do It?