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Income Tax Act, 1961 is an act implemented under the Central Government of India to levy, collect & recover Income-tax from the common citizens in India. It came into effect from 1st April 1962.
Tax is the financial charge levied on the citizens and demanded by the Government on different types of income. Taxes are the most important modes of income for the Government, which are utilised for the welfare of the common people of the nation.
As per the Income Tax Act, the term ‘person’ includes –
1. Salaries
2. Income from house property
3. Profit and gains of business or profession
4. Capital gains
5. Income from other sources
Tax is a mandatory monetary charge levied on every individual by the government, as we have discussed what taxes are the various sources of taxes, its purposes, and provisions. There are a number of Provisions provided under law for taxpayers as per their requirements. The government has provided various forms to pay income tax whether a person is an individual or HUF or a company or he is an ordinary resident or non-ordinary or non-resident person, as per their applicability they can file income tax.
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