Income Tax Slabs for Non-Individual Entities in India (AY 2025–26)
Introduction The Indian income tax system follows a progressive slab-based structure, applicable to both individuals and non-individual entities. Under this framework, taxpayers are categorized into income brackets or “slabs,” with each slab attracting a specified tax rate. Higher income levels are taxed at proportionately higher rates to ensure equity in the tax burden. This article…
Read article Comparative Analysis of the Old and New Tax Regimes under Section 115BAC
Introduction The Finance Act, 2023 introduced pivotal amendments to Section 115BAC of the Income Tax Act, 1961, effective from Assessment Year (AY) 2024–25. As a result of these changes, the new tax regime has been made the default taxation system for certain categories of taxpayers, including Individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs)…
Read articleConditions and Features for Opting the New Tax Regime under Section 115BAC of the Income Tax Act
Overview: The Finance Act, 2023, introduced significant amendments to Section 115BAC of the Income Tax Act, effective from the Assessment Year (AY) 2024–25. These changes designate the new tax regime as the default regime for certain categories of taxpayers, including individuals, Hindu Undivided Families (HUFs), Associations of Persons (AOPs) (excluding co-operative societies), Bodies of Individuals…
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What is capital gain and how capital gain tax has arrived?
Updated: As per the amended finance act 2020 Any gain arising on the transfer (by sale or exchange) of the capital asset is known as a capital gain. Capital gains are calculated on the cost of acquisition and cost of improvement expenses of a capital nature incurred in making any additions or alterations to the…
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Classification of Income under the Income Tax Act, 1961
IntroductionUnder Section 14 of the Income Tax Act, 1961, the total income of an individual is classified under five distinct heads. This classification facilitates proper computation of taxable income and ensures compliance with tax laws. The five heads of income are: 1. Income from Salaries Income under this head is reported in Schedule S of…
Key Terms and Forms in Indian Income Tax Law: A Comprehensive Overview
Introduction The Indian Income Tax system encompasses a wide array of concepts, procedures, and compliance requirements. To assist taxpayers and students of taxation in navigating this complex framework, the following is a formal glossary of essential terms and commonly used forms under the Income Tax Act, 1961. Each entry has been defined succinctly to enhance…
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