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Income tax is a direct tax levied on the annual income of individuals, Hindu Undivided Families (HUFs), companies, and other entities. It is governed by the Income Tax Act, 1961 and administered by the Income Tax Department.

Under the new regime: 0-3 lakh (nil), 3-7 lakh (5%), 7-10 lakh (10%), 10-12 lakh (15%), 12-15 lakh (20%), above 15 lakh (30%). Under the old regime: 0-2.5 lakh (nil), 2.5-5 lakh (5%), 5-10 lakh (20%), above 10 lakh (30%).

Old regime offers various deductions (80C, 80D, HRA, home loan interest, etc.) with higher tax rates. New regime has lower tax rates but limited deductions. Taxpayers can choose whichever gives lower tax liability.

Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, EPF, ELSS, life insurance, NSC, Sukanya Samriddhi, tuition fees, and principal repayment of home loan.

Section 87A provides tax rebate of ₹25,000 (old regime) or ₹12,500 (new regime) for individuals with total income up to ₹7 lakh, making their tax liability zero.

Surcharge is an additional tax on high-income earners (10% for ₹50L-1Cr, 15% for ₹1Cr-2Cr, 25% above ₹2Cr). Health and Education Cess is 4% of income tax plus surcharge.

For individuals: July 31 (without audit), October 31 (with audit). For companies: October 31. For taxpayers requiring transfer pricing reports: November 30. Late filing attracts penalties starting from ₹1,000.

Register on the Income Tax e-filing portal (incometax.gov.in), select the applicable ITR form, enter income details, claim deductions, verify the return, and e-verify using Aadhaar OTP or net banking.

ITR-1 is for resident individuals with income from salary, one house property (not brought forward loss), other sources (excluding lottery/race horses), and agricultural income up to ₹5,000. Total income must not exceed ₹50 lakh.

Short-term capital gains (STCG) on equity are taxed at 15%. Long-term capital gains (LTCG) above ₹1 lakh are taxed at 10%. LTCG on debt funds is taxed at 20% with indexation. Real estate capital gains are taxed at 20% with indexation.

Advance tax is paying tax in installments during the financial year instead of waiting until the end. It applies if your tax liability exceeds ₹10,000. Due dates are June 15, September 15, December 15, and March 15.

Presumptive taxation (Section 44AD, 44ADA) allows small businesses and professionals to declare income at a presumed rate (8% or 6%) without maintaining books of accounts, simplifying tax compliance.

TDS is tax deducted by a person making certain payments. The deductor deducts tax and deposits it with the government. The deductee can claim credit for TDS while filing their income tax return.

ITR is the form filed by taxpayers to declare their income, expenses, tax liability, and refunds to the Income Tax Department. Different ITR forms (ITR-1 to ITR-7) are applicable based on income source and taxpayer type.