The enactment of the Income-tax Act, 2025 marks a significant legislative transition in India’s direct tax framework. One of the most notable changes introduced by the new law is the comprehensive re-numbering and restructuring of withholding tax provisions relating to Tax Deducted at Source (“TDS”) and Tax Collected at Source (“TCS”).
Determining the correct Financial Year (FY) for computing Capital Gain or Capital Loss on the transfer of immovable property can be complex, especially when payments are made in parts over a long period. Understanding the exact point of "transfer" is crucial not only for tax assessment but also for the purpose of indexation for the buyer.
Did you know that if you are paying rent of more than Rs. 50,000 per month, you must deduct TDS and file FORM 26QC?
Tax is majorly classified into two parts - Direct Tax and Indirect Tax. Direct tax is defined as the tax which is levied directly on the income earned, for example, Income Tax. Whereas, indirect tax refers to the tax which is levied on goods and services, for example, Goods and Service Tax, Custom, etc. Here in this article, we will learn about Income taxes in detail. So let’s understand what Income tax is and how it works.
Income tax is the most significant direct tax. It is levied on total income of the person earned in the previous year. A person includes an individual, Hindu Undivided Family, Association of Persons, Body of Individuals, a firm and a Company. There is no shifting of burden of tax on other person and it is progressive in nature. List I in the Seventh Schedule to Article 246 of the Constitution has given power to make laws on taxes on income other than agricultural income.
