Understanding income tax is the first step to managing your money smartly.
What is Income Tax?
Income tax is the tax you pay on your earnings to the government. If your income is above a certain limit, you must pay tax and file an Income Tax Return (ITR).
Types of Taxpayers (Assessees):
Individual
Hindu Undivided Family (HUF)
Company
Firm (Partnership/LLP)
Association of Persons (AOP)
Body of Individuals (BOI)
Local Authority
Artificial Juridical Person
Important Dates Financial Year (FY):
1st April to 31st March
(The year in which you earn income)
Assessment Year (AY): The year following the financial year
(When you file returns and pay taxes)
FY 2024–25 → AY 2025–26
ITR Filing Deadline (extended):
15th September 2025
Sources of Income (Taxable Heads)
Income is taxed under these five heads:
Income from Salary
Income from House Property (rent, etc.)
Income from Business or Profession
Capital Gains (sale of shares, property, etc.)
Income from Other Sources (interest, dividends, gifts, etc.)