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Understanding Which Sections of the Income Tax Act Apply to You in India

Know which sections of the Income Tax Act you are required to file a tax return so that you have time to make sure all your information is correct and the process is as easy as possible.

The Income Tax Act, 1961 applies to individuals residing in India. This means that you are subject to income tax under the provisions of this act, even if you do not have a permanent residence in India. In addition, certain provisions of this act apply to individuals who are temporarily present in India for business or pleasure. This blog discusses about various Sections of Income Tax Act in detail as follows.

There are six main sections of the Income Tax Act that apply to individuals residing in India: Section 1 applies to individual residents who are citizens of India or whom Indian nationals may be deemed to be resident for tax purposes.

  1. Section 2 applies to individuals who are not citizens of India and who are not ordinarily resident in India. 
  2. Section 3 applies to companies that are registered under the Companies Act, 1956. 
  3. Section 4 applies to trustees of trusts that are registered under the Trusts Act, 1925. 
  4. Section 5 applies to persons who are beneficiaries under pension schemes that are registered with the Pension fund Regulatory and Development Authority (PFRDA). 
  5. Sections 6 and 7 apply to non-resident Indians who have income from sources within India.

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In addition, there are a number of special provisions that apply specifically to individuals who reside in India and engage in business activities here. For example, section 194B allows taxpayers residing outside India to dispose of income that arises from a business carried on outside India only to the extent such disposal does not create an artificial price for the property or, in certain cases, does not cause a loss to a person who is providing it.

Learn more about filing Income tax return

What Are the Filing Dates in India?

The Indian Income Tax Act, of 1961, applies to individuals and Hindu undivided families who are residents in India. The filing date for the personal Income Tax class is the same as the due date for payment of the tax. For individuals, the due date is April 15th of the year following the taxable year. For Hindu undivided families, the due date is July 15th of the year following the taxable year.

Use Vakilsearch`s Income tax calculator to decide your taxable earnings and document your Individual Tax Return (ITR) with ease.

Which Forms Need to Be Filed by Individuals and Businesses in India?

Individuals: Tax returns for the previous financial year (Form 1040) must be filed by April 15 of the following year.

Businesses: Tax returns for the previous financial year (Form 1040) must be filed by April 15 of the following year if they had a taxable income of more than $1,000 (₹ 79375.50)  or if they have a balance sheet item worth more than $5,000 (₹396877.50) at the end of the previous fiscal year.

What Are the Penalties for Not Filing Your Tax Return on Time in India?

If you file your tax return late, you may face penalties, including a fine and/or imprisonment. The penalties for filing a late tax return depend on the type of tax you’re responsible for paying and the time period for which the return is late. Generally, the more income you have and the more money you owe in taxes, the harsher the penalties.

Filing a late tax return can also lead to your account being frozen or even closed. This can make it difficult to access your money, borrow from banks, or get a mortgage. If you have other financial obligations, filing a late tax return can also result in them being deferred or even canceled altogether.

There are several steps you can take to avoid penalties and ensure that your tax return is filed on time. First, make sure you have all of the information needed to file your return. Second, check the deadlines that apply to you. Finally, keep track of when your return is due and file as soon as possible if it’s still within the applicable deadline.

If you need help filing your tax return or understand which sections of the Income Tax Slab rates apply to you in India, speak with Vakilsearch today.

Taxation for Individuals

Individuals in India are taxed on their taxable income. Taxable income is defined as all income from any source except net rental income and pension contributions. Net rental income is Income from renting out property that you own or lease. Pension contributions are amounts you contribute to a government pension plan.

Taxable income is calculated using a statutory formula based on an individual’s total income and marital status. Total income includes all sources of income, including salaries, wages, tips, bonuses, investment dividends, interest, royalties, and rent received from real estate or other property owned or leased by the individual. marital status refers to an individual’s relationship to his or her spouse at the time the income

About Section 92CD Modified Return

If you are an individual who is resident in India and has an income from any source, then u/s 92cd modified return applies to you. U/s 92cd modified return of the Income Tax Act: deals with the calculation of your income and taxes on it.

There are a few key things to keep in mind when dealing with u/s 92cd modified return. First, you need to know what your taxable income is. This is your total income after all deductions have been made, including any losses that you may have incurred.

Finally, you need to file a correct tax return u/s 92cd modified return. If you fail to file a correct tax return using Section cd modified return, then you may face penalties and interest charges. So be sure to follow all the instructions carefully when filing this section of the Foreign Income Tax


In this article, we have discussed the different sections of the income tax act that apply to individuals in India. We hope this article has provided you with the information you need to file your taxes in an effective and efficient way.


What does the Income Tax Act apply to?

The Income Tax Act applies to the taxation of income earned by individuals, companies, and other entities in India. It governs the assessment, collection, and administration of income tax.

How many sections are there in Indian Income Tax Act?

The Income Tax Act contains a total of 23 chapters and 298 sections.

Which Income Tax Act is applicable in India?

The Income Tax Act, 1961 is the primary legislation that governs income tax in India. It is the current applicable Act.

What are the important sections in Income Tax Act?

The Income Tax Act includes various important sections that cover different aspects of taxation. Some notable sections include Section 80C (deductions for investments), Section 10 (exemptions), Section 139 (filing of income tax returns), Section 234A, 234B, and 234C (interest on late filing and payment), and Section 115BAC (new tax regime for individuals and HUFs).

How many types of Income Tax Act are there?

There is one Income Tax Act in India, which is the Income Tax Act, 1961. It is the comprehensive legislation that governs income tax in the country.

What section of Income Tax Act is salary?

The provisions related to salary income are primarily covered under Section 15 to Section 17 of the Income Tax Act. These sections provide rules for the computation and taxation of income from salaries.

Which is the first Income Tax Act?

The history of income tax in modern India begins in 1860, when James Wilson, India's first finance minister, presented the first income tax statute.

What are the 5 types of taxes in India?

The five types of taxes in India are:Income Tax: Tax on income earned by individuals, companies, and other entities. Goods and Services Tax (GST): A value-added tax levied on the supply of goods and services. Securities transaction tax: Tax on trades on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other recognized stock exchanges. Custom Duty: Tax on the import and export of goods. Excise Duty: Tax on the production, sale, or consumption of certain goods.

Which part of salary is non taxable?

There are various components of salary that may be non-taxable or party taxable, depending on the specific exemptions and deductions provided under the Income Tax Act. Common examples include the House Rent Allowance (HRA) received by an employee, special allowances, reimbursements for specific expenses, and exemptions for leave travel allowance (LTA) and medical reimbursements, subject to certain conditions.

Who is the father of taxation?

Mr. Raja Chelliah is the one and only father of India's tax reforms.

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