In India, income tax is paid by individuals, Hindu Undivided Families (HUFs), companies, firms, and other entities that earn income or profits.
Individuals who are residents of India and have an income exceeding the basic exemption limit of Rs. 2.5 lakhs (Rs. 3 lakhs for senior citizens and Rs. 5 lakhs for super senior citizens) are required to pay income tax. The income may be in the form of salary, business income, capital gains, rental income, or any other source.
Hindu Undivided Families (HUFs) are also required to pay income tax if their income exceeds the basic exemption limit of Rs. 2.5 lakhs.
Companies, including domestic companies and foreign companies with a permanent establishment in India, are required to pay income tax on their profits. The current corporate tax rate in India is 25% for companies with a turnover of up to Rs. 400 crores, and 30% for companies with a turnover of more than Rs. 400 crores.
Firms, including partnership firms and LLPs (Limited Liability Partnerships), are also required to pay income tax on their profits.
In addition to paying income tax, taxpayers are required to file their income tax returns (ITR) on or before the due date to avoid penalties and legal action by the tax authorities. The due date for filing ITR varies depending on the type of taxpayer and the amount of income earned.
In summary, income tax in India is paid by individuals, HUFs, companies, firms, and other entities that earn income or profits. The basic exemption limit and tax rates vary depending on the type of taxpayer and the amount of income earned. It is important to file income tax returns on or before the due date to avoid penalties and legal action by the tax authorities.