Here we have provided complete notifications related to the Income Tax and TDS provisions as per the official government laws. We include all the latest updates in Income Tax and TDS, news, amendments, and circulars on the government portal for your reference.
Introduction of Income Tax
Income Tax is the tax levied by the government on the income earned by an individual in any given previous year. The latest income tax update is charged as a price for utilising the services provided by the government and maintaining them. It is the main source of revenue for the central government.
The main motive of collecting income tax is so that the amount raised by the government can be used for the development of buildings, roads and other infrastructure and development services. Income tax is collected by the central government and distributed to the state governments.
Income tax is managed by the Central Board of Direct Taxes (CBDT) and is governed by the Income Tax Act of 1961. There are six sources of income according to the Indian tax system. Income from salary, income from business or profession, income from capital gains, income from other sources, income from house property, etc.
Different rates of tax apply to different types of income. Some deductions are also provided by the government on income. The taxable income of an individual can be calculated after the deduction of such deductions.
Income tax is charged by the government according to the income earned by the individual. It is levied according to a slab system. In India, two slab systems are working under income tax, namely, the old system and the new system.
The new IT slab system was introduced with the annual Budget for taxpayers. The government has provided an option of choosing between the slab systems to the assessee. An income tax return can be filed online by the individual assessee under forms ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, and ITR-7 according to the source of income of the assessee. The returns can also be filed by an assessee earning below the tax slabs. Non-compliance with the provisions of Income Tax can attract serious penalties, prison, or both.
Tax Deducted at Source (TDS) in India
Tax deducted at source is the tax deducted by the payer before paying the amount to the payee. It is a form of direct tax. It is levied on incomes, dividends, asset sales, rents, and interest payments by the bank.
It is managed by the Central Board of Direct Tax (CBDT) and is governed by the Income Tax Act of 1961. The returns of TDS are to be filed by the assessee every quarter.
The tax is imposed so that the burden of tax to be paid by the assessee at the end of the year is reduced through infractions every month, and the government can earn some revenue beforehand. Different rates of tax apply to different types of transactions. TDS is a form of advance tax. The returns of TDS can be e-filed by the assessee.
Sections 194IA, 194IB, and 194IC of the Income Tax Act, 1961, govern the latest TDS rules for tax deduction on the sale of assets, while Section 302 governs TDS on dividends. If the tax deducted by the employer exceeds the actual liability, the employee can claim a refund.
Non-compliance with the provisions of TDS Updates can attract penalties, prison, or both. Collection of TDS makes sure that there is no tax evasion by any individual, as the employer is responsible for deducting the tax, and the situation of tax evasion is not even possible. The statement of TDS is reflected in Form 26AS of the Income Tax Act, 1961 and can be claimed in the same.
