CHECK YOUR INCOME TAX REFUND

Lack of awareness amongst taxpayers is often cited as the main reason for low level of compliance towards tax laws.  It has been a constant endeavor of the Directorate of Income Tax (PR, PP & OL) to increase awareness of the taxpayers about the provisions of tax laws and the steps taken by the government to reduce the complexities of tax laws and improve Tax Payer.  Services.  The booklets published under the TaxPayers’ Information Series have proved to be an effective and convenient tool to educate the taxpayers in discharging their tax liabilities to Direct Taxes. -r.n.gurg

Income tax is an annual tax on income.  The Indian Income Tax Act (Section 4) provides that in respect of the total income of the previous year of every person, income-tax shall be charged for the corresponding assessment year at the rates laid down by the Finance Act for that assessment year.  Section 14 of the Income-tax Act further provides that for the purpose of charge of income tax and computation of total income all income shall be classified under the following heads of income:

A. Salaries B. Income from house property C. Profits and gains of business or profession.  D. Capital gains E. Income from other sources.

The total income from all the above heads of income is calculated in accordance with the provisions of the Act as they stand on the first day of April of any assessment year.