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.

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

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.

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.

Learn more about Penalty For Not Filing ITR

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.

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