Who should pay Income Tax?

Given below is a list of people who are required to pay income tax in India:

A person who earns more than ₹2,50,000 per year
Head of a Hindu Undivided Family who earns more than ₹2,50,000 per year
Freelancers
Companies

Pro tip:

A Hindu Undivided Family or HUF is usually used as a tax saving option that Hindu families use. A Hindu family can come together, pool in all their assets and form an HUF. This HUF will be taxed separately from its members, so exemptions and deductions can also be claimed separately, thus saving tax.

You have now understood what income tax means and who is eligible to pay that as per the Income Tax rules in India. But how does one calculate how much tax they should pay? Let’s dive into the next section to understand that…

To track your progress

Who should pay Income Tax?

Pro tip:

Continue reading to know about how to calculate Income Tax