The word income is broadly defined under Section2(24) of the Income Tax Act. Let’s understand what exactly “income” is:
Income is further classified by Income Tax in 5 categories:
The financial year is the year in which you have earned income. While Assessment year is the succeeding year in which you file the Income Tax return of the previous year.
Income Tax is the tax imposed by the government on your yearly income. Income tax is the key source for the government to generate the funds to serve the public.
When the companies pay taxes under the law of the Income Tax Act is called Corporate Tax.
The Income Tax Department is generally governed by the Central Board of Direct Taxes (CBDT). The CBDT provides the essential inputs for policy and planning to direct taxes on the public. CPC Bengaluru or Income Tax Centralized handles all the processing of Indian income tax refunds.
Generally, the Income Tax Department processes your refund only after completing the ITR process. It usually takes 35-40 days from the date of e-verification done by Income Tax for the refund. However, if you choose the offline mode to file a refund by sending the documents to the CPC Bengaluru, it might take more time.
Central Board of Direct Taxes administrates the direct tax law through the Income Tax Department. However, Income Tax works under the law of CBDT.
Income tax is chargeable on the annual income of the assesses. The period of 1st April to 31st March is considered as the Income Tax period.
Legaltaxpert is offering the best tax-paying advisory services in the country. You can contact us via mail or call for income tax-related advice.
When the assesses has the excess tax liability of Rs. 10000. This tax is calculated on the current income and can be paid in 4 instalments.