Income Tax in India

Income Tax In India



Central Revenue collections in 2007-08 (Source: Compiled from reports of Comptroller and Auditor General of India for relevant years)

Personal Income Tax (Direct) (17.43%) Corporate Tax (Direct) (32.76%) Other Taxes (Direct) (2.83%) Excise duty (Indirect) (20.84%) Customs duty (Indirect) (17.46%) Other Taxes (Indirect) (8.68%)

The Central Government has been empowered by Entry 82 of the Union List of Schedule VII of the Constitution of India to levy tax on all income other than agricultural income (subject to Section 10(1)). The Income Tax Law comprises The Income Tax Act 1961, Income Tax Rules 1962, Notifications and Circulars issued by Central Board of Direct Taxes (CBDT), Annual Finance Acts and Judicial pronouncements by Supreme Court and High Courts.

The government of India imposes an income tax on taxable income of all persons including individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person. Levy of tax is separate on each of the persons. The levy is governed by the Indian Income Tax Act, 1961. The Indian Income Tax Department is governed by CBDT and is part of the Department of Revenue under the Ministry of Finance, Govt. of India. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

The Income Tax Department is the biggest revenue mobilizer for the Government. The total tax revenues of the Central Government increased from Rs. 139226 crore in 1997-98 to Rs. 588909 crore in 2007-08.

Read more about Income Tax In India:  History, Heads of Income, Agricultural Income, Permissible Deductions From Gross Total Income, Refund Status, Due Date of Submission of Return, Advance Tax, Tax Deducted At Source (TDS), Corporate Income Tax, Tax Returns, Tax Penalties

Famous quotes containing the words income, tax and/or india:

    “The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
    —Rutherford Birchard Hayes (1822–1893)

    “People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
    —Friedrich Nietzsche (1844–1900)

    “There exists no politician in India daring enough to attempt to explain to the masses that cows can be eaten.”
    —Indira Gandhi (1917–1984)