Income tax is an annual tax charged on income of a person by the government. It is charged for the corresponding assessment year at the rates laid down by the Finance Act for the assessment year in respect of the previous year.

Income of the person is categorized under the following five heads

☛ Salaries

☛ Income from house property

☛ Profits and gains of business or profession

☛ Capital gains

☛ Income from other sources.

Income is calculated under these heads separately and accordingly tax is calculated using the income tax slab issued by the government every financial year.