Income Tax for Professionals

This blog is going to be in a series of blogs. where we are going to explore all income tax related concepts one by one. This blog is for a beginner so don’t worry if you do not have any knowledge about the Income Tax. You can learn most of the concepts by reading the blogs we are going to use very simple language and will try to avoid use of Jargon.

What are the Topic we are going cover in this blog series:-

1. What is income and what are the type of income.
2. How to calculate Gross Income (Taxable Income). (with Example)
3. Income Tax Slabs.
4. Taxable and non-taxable component of your income.
5. What are the deduction/exemption available.
6. What is TDS?
7. What is professional Tax?
8. What is Income Tax Return?
9. How to file Income Tax Return.

We are going to discuss the above points in detail to understand the every aspect of the Income Tax and we will also cover the latest changes done by the government.

This is going to be an practical blog where we will use the actual salary slips and real life examples and learn how people are planning their taxes and how we can make them better.

In this blog, we are going to learn about the basic topic

1. Assessment Year.
2. Previous Year.

Assessment Year & Previous Year

Let’s say you earned some income in the Year 2019–20 (i.e. 1 April 2019 to 31 Mar 2020). Then 2019–20 will be called Previous Year (i.e. Income Year)and 2020–21 Year will be called Assessment Year (i.e. Tax Year).