Everyone who earns or gets an income in India is subject to income tax. Paying your income tax for the first time is a milestone in any citizen’s life. However, the process might seem to be a bit difficult to deal with for a first-timer and some of the terms tend to go right over your head. The fundamentals of income tax is applicable to both residents and non-residents of India. The payer has to deduct an amount of tax based on the rules prescribed by the income tax department. For instance, An employer will estimate the total annual income of an employee and deduct tax on his income if his Taxable Income exceeds INR 2,50,000. Tax is deducted based on which tax slab you belong to each year. Federal income taxes are used to provide for national programs such as national defence, veterans and foreign affairs, social programs, physical, human, and community development, law enforcement and interest on the national debt. One of the biggest benefits of income tax return is claiming tax deductions. There are several ways in which you can reduce your overall tax liability.

Saket Kumar

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