Income tax is a tax levied to the income of
d. Any other legal entity
Income tax when levied to Corporate is called corporate income tax or profit tax. Income tax when levied to individuals the tax takes the entire income of the individual into account.
Income tax is a tax paid to the Central Government. Under the Income Tax Act 1961, every person who is an assessee or whose income exceeds the maximum exemption limit shall be charged an income tax as specified in the Finance Act.
Income tax is Progressive in nature. It is a tax in which tax rate increases as the taxable amount increases. The positive of progressive tax is that it tends to reduce the tax incidence of people with lower ability to pay.
Filing of Income Tax is a legal obligation of every person whose total income for the previous year has exceeded the maximum amount that is chargeable for income tax under the provision of the I.T. Act, 1961.
Section 139(1) of the income tax act makes it obligatory for any person to file income Tax if he or she falls under any of the six below mentioned category.
1. Is the owner of a vehicle.
2. Occupies specified floor area of an immovable property.
3. Incurs expenses on himself or any other person for foreign travel.
4. Subscribes to a telephone.
5. Is the holder of a credit card, (not applicable to add on cards) issued by a bank or institution.
6. Is the member of a club where the entrance fee is charged Rs. 25,000 or more.