Constitution of India -Schedule VII-Union List - Entry 82 has given power to the Central Government to levy a tax on any income other than agricultural income.
The government imposes a tax on taxable income of all persons who are individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person.
Income Tax Slabs and Rates for Assessment Year 2021-22:
Income Tax Slab Tax Rate Applicable:
Income upto Rs.2.50.00 -- Nil
Income between Rs.2,50,000 to Rs.5,00,000 - 5%
Income between Rs.5,00,000 to Rs.10,00,000 - 20%
Income over Rs.10,00,000 - 30%
Total Income Includes:
1. Inocme from Salary
2. Income from House Property
3. Income from Business and Profession
4. Income from Capital Gains
5. Income from Other Sources