Category: Income Tax

The Indian Income Tax Act of 1961 is the key legislation governing income tax in India, covering individuals and entities like corporations and firms. It classifies income into five main heads: salaries, income from house property, business profits, capital gains, and other sources, with specific rules and exemptions for each category.

Administered by the Income Tax Department under the Ministry of Finance, the Act is updated periodically to reflect economic changes and fiscal policies. Key amendments include incentives for savings, investments, and specific expenses like medical costs, supporting both compliance and financial planning.

The Act is central to India’s financial system, generating revenue for government programs while providing tax benefits to promote social goals. Its structure upholds transparency and fairness in the taxation process, ensuring accountability within India’s economic framework.