Income tax in India is governed by Entry 82 of the Union List of the Seventh Schedule to the Constitution of India, empowering the central government to tax non-agricultural income. Income-tax law consists of the Income tax Act 1961, Income Tax Rules 1962, Notifications and Circulars issued by the Central Board of Direct Taxes (CBDT), annual Finance Acts, and judicial pronouncements by the Supreme and high courts.

The Indian government taxes certain income of individuals, Hindu Undivided Families (HUF’s), companies, firms, LLPs, associations, bodies, local authorities, and any other juridical person. Personal tax depends on residential status. The CBDT administers the Income Tax Department, which is part of the Ministry of Finance’s Department of Revenue. Income tax is a key source of government funding.

In India, Income Tax is to be paid on quarterly basis as an Advance Tax and Annually basis as self-assessment tax. Income tax is paid through a separate payment portal developed by GOI.  Besides Income tax payment every person who are liable to file income tax return is required to file Income tax return according to their nature of income and status of person through specified Income tax forms by going through separate e-filing portal developed by government.