Income Tax

If you earn money from a shop, freelancing, consultancy, or any independent work, this income does not come under salary. It falls under a separate category in income tax called “Profits and Gains of Business or Profession.” Many beginners get confused here. “What exactly is considered business income?” “Does everything I earn from work count here?” Let me walk you … [Read more...] about Types of Business Income Under Income Tax: A Simple Guide to Profits and Gains of Business or Profession

Let me start with a situation many people face. You earn a salary, maybe some freelance income, or small business income. At the end of the year, you suddenly realise—tax payable is quite high. Instead of paying everything at once, the government expects you to pay tax in parts during the year itself. This is called advance tax in India. In this guide, I’ll explain … [Read more...] about Advance Tax in India (Simple Guide): Who Should Pay, Due Dates & Easy Explanation for Beginners

Imagine it is June, and your company sends an email saying your Form 16 is ready to download. Many salaried employees see this message every year, but not everyone fully understands what the document actually shows. In simple terms, Form 16 is a summary of your salary and the tax deducted from it during the year. It is one of the most useful documents when filing your Income … [Read more...] about What is Form 16? A Simple Guide for Salaried Employees in India

If you work in a job and receive a monthly salary, this income falls under the “Salary” head of income in the Indian Income Tax system. Many beginners assume salary simply means the money credited to their bank account every month. In practice, the tax rules look at salary in a much broader way. Apart from your monthly pay, several other things—such as bonuses, … [Read more...] about Salary Income in India Explained: Guide to Salary Tax, Allowances, and Deductions for Beginners

Securities Transaction Tax (STT) in India was introduced by the former finance minister of India P. Chidambaram with effect from October 1, 2004. Securities Transaction Tax (STT) is a kind of turnover tax that is levied by the central government on the total consideration paid or received in a transaction. As the name implies, Securities Transaction Tax (STT) is levied on … [Read more...] about When Securities Transaction Tax (STT) is levied in India