Section 4
Section 4: charge of income-tax
Section 4 is the charging section of the Income-tax Act, 2025 - the provision that actually imposes the tax. It works together with the annual Finance Act (which fixes the rates) and confirms that tax is charged on a person's total income for the tax year, collected through advance tax, TDS/TCS, or on assessment.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 4 says
"(1) Where any Central Act enacts that income-tax shall be charged for any tax year at any rate or rates, income-tax for such tax year shall be charged at that rate or those rates in accordance with and subject to the provisions of this Act."
"(2) The charge of income-tax under sub-section (1) shall be on the total income of the tax year of every person as per the provisions of this Act."
"(3) Income-tax shall also include any additional income-tax, by whatever name called, levied under this Act."
"(4) If this Act provides that income-tax is to be charged in respect of income of a period other than the tax year, it shall be charged accordingly."
"(5) For the income chargeable under this section, income-tax shall be deducted or collected at source or paid in advance as provided under this Act."
What this means in practice
Section 4 itself does not state a tax rate - the actual rates are fixed each year by the Finance Act. Section 4's role is to confirm that whatever rate the Finance Act sets, tax is charged on the total income of every person for that tax year, under the machinery of this Act.
"Income-tax" for this purpose also includes any additional income-tax (by whatever name it is called) levied under the Act - this is a broad umbrella term.
Ordinarily tax is charged on income of the tax year, but where the Act itself specifies a different period for a particular kind of income, tax is charged for that period instead.
Tax due under this section is collected through the usual mechanisms - deduction or collection at source (TDS/TCS) and advance tax payments - rather than only at the time of assessment.
Frequently asked questions
Does Section 4 tell me what tax rate applies to me?
No - Section 4 charges tax on total income at whatever rate or rates the annual Finance Act specifies for that tax year. The actual rate slabs are announced separately each year.
Who is liable to pay income-tax under Section 4?
Every person, on their total income for the tax year, as computed under the provisions of this Act.
Related sections
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Talk to our tax team about this sectionLast updated 9 September 2026