Goods and Services Tax (GST) is applicable in India from 1st July 2017. Under the new GST regime, nearly 1.4 crore businesses in India have obtained GST registration. All entities having GST registration are required to file GST returns every month. GST return filing is mandatory for all entities having GST registration, irrespective of business activity or sales or profitability during the return filing period. Hence, even a dormant business that obtained GST registration must file GST return.
HEAD OF INCOME | NATURE OF INCOME COVERED |
---|---|
Income from Salary | Income from salary and pension are covered under here |
Income from Other Sources | Income from savings bank account interest, fixed deposits, winning KBC |
Income from House Property | This is rental income mostly |
Income from Capital Gains | Income from sale of a capital asset such as mutual funds, shares, house property |
Income from Business and Profession | This is when you are self-employed, work as a freelancer or contractor, or you run a business. Life insurance agents, chartered accountants, doctors and lawyers who have their own practice, tuition teachers |
Taxpayers in India, for the purpose of income tax includes:
Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax of 30% of profits, the individual,HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s incomes are grouped into blocks called tax brackets or tax slabs. And each tax slab has a different tax rate. In India, we have four tax brackets each with an increasing tax rate.
INCOME RANGE | TAX RATE | TAX TO BE PAID |
---|---|---|
Up to Rs.2,50,000 | 0 | No tax |
Between Rs 2.5 lakhs and Rs 5 lakhs | 5% | 5% of your taxable income |
Between Rs 5 lakhs and Rs 10 lakhs | 20% | Rs 12,500+ 20% of income above Rs 5 lakhs |
Above 10 lakhs | 30% | Rs 1,12,500+ 30% of income above Rs 10 lakhs |