List of Important Income Tax FAQs in India

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

List of Important Income Tax FAQs
  • 1st Oct 2019 |
  • 2,186

Paying income tax is the duty of every earning individual of the country, whose income falls in the tax slab.However, all the rules and regulations regarding taxation can get confusing at times. These FAQs can help you understand it better.

What is income tax?

You first have to ask yourself ‘‘what is income tax’’ before you can learn about anything related to it. It is the tax imposed by the Government of India on the earning citizens of the country. The Income Tax Act,1961 dictates the taxation system of India.

What is the financial year for income tax purposes?

The period from April 1 to March 31 of the next year is considered as the ‘financial year’. Your income during this period is calculated for tax purposes.

What are the various forms of collection of income?

  • Advance Tax
  • Tax on Regular Assessment
  • Self-Assessment Tax
  • Taxes Collected at Source
  • Taxes Deducted at Source [TDS]

What are the different categories under which income tax is imposed?

The Income Tax Act categorizes the taxable income tax deduction different sections:

  • Salaries
  • Profits from business or profession
  • Income from house property
  • Income from other sources
  • Capital gains

What is the basic exemption limit for Income Tax?

For the financial year 2018-19, the basic exemption limits are:

  • INR 2.5 lakh for individuals under 60 years
  • INR 3 lakh for senior citizens (60-80 years)
  • INR 5 lakh for super senior citizens (above 80 years)

Does India provide ‘Double Taxation Relief’?

The double taxation relief is offered to individuals who are charged taxes on the same source of income in India and a foreign country. This is allowed under Section 91 of the Income Tax Act, 1961. The relief is also offered if the foreign country in question has a ‘Double Taxation Avoidance Agreement’ with India.

What are the books of account that need to be maintained under the income tax laws?

The Institute of Chartered Accountants of India has set many guidelines that the Indian companies need to follow. Under the Companies Act, the books of accounts are arranged for the organizations. For individuals, the book of account and related documents are required so the Assessing Officer can determine the total income of every individual.

What is a PAN?

The Permanent Account Number (PAN) is a ten-digit number issued by the Income Tax Department. The number is unique to every taxpaying individual.

What are the benefits of taking PAN?

The PAN is mandatory to pay taxes and for other financial transactions like buying high-end products, availing of financial credit, opening a bank account, and trading in securities among others. It is also accepted as a valid identity card.

Why are income taxpayers limited in number?

As a developing country, India has a very high number of citizens who earn less than the minimum income tax slab of INR 2.5 lakh. Hence, they do not pay any income tax. Also, India is an agricultural country and income from agricultural sources are tax exempted.

How can an individual save taxes in India?

There are different ways to save taxes in India:

  • Under Section 80C, an investment of INR 1.5 lakh reduces taxable income
  • Under Section 80D, premium towards medical insurance is tax-deductible
  • Under Section 80EE, home loan interests are tax-deductible
  • This FAQ on income tax will help you understand the Indian taxation system better so that you can pay your due taxes correctly.

Invest in Term Insurance Now to Save Tax

Read Here for More Related Articles:

Download Brochure


  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999


Browse our library of resources

Download Brochure


  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Income Tax Benefits for Doctors

Impact of GST on Life Insurance in India

Top 8 Tax-Saving Methods in India- Budget Planning

9 Point Guide on how to File Income Tax Return Online

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Tax Exemption and Scope of Coverage

All about TDS Payment Online & Due Dates

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

Financial Benefits and Government Schemes Every Woman in India Should Know

What is Tax Deduction at Source (TDS)?

Tips to plan your savings in 2019

Section 44AD of Income Tax Act for AY 2020-21

What is the Difference Direct Tax and Indirect Tax

What is Section 10D of the Income Tax Act?

Types of Riders in Insurance Policy

How to File TDS Return?

Presumptive Taxation for Business and Profession

What is Section 80C Deduction?

Tax Saving Guide for 2019-20

Tax Saving Options for Salaried Employees

Income Tax Filing Using Multiple Form 16

How to Check Income Tax Returns Status Onine?

Save Income Tax by 31st March: Here Is a Checklist

Why January Is an Important Month for Saving Tax?

How to Get Form 16?

Why is Form 16 Important?

Guide for Tax Calculation on your Salary

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Income Tax Deduction Under Section 80CCC In India

धारा 80डी आयकर अधिनियम, 1961

Sub-sections Under Section 80C of the Income Tax Act, 1961

Do Beneficiaries Pay Taxes on Life Insurance?

ITR 2 Form – Complete Guide

Penalty For Late Filing TDS Return

What is Section 80CCC of the Income Tax Act 1961

How Much Money This Budget 2019 Can Help You Save

Financial Planning and Best investment options for Housewives

A Complete Guide for Filing ITR 3 Form

Guaranteed Return Plans-Why is it a must for you?

How to Pay Advance Tax Online in India

Problems People Face with Tax Returns after a Job Change

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

Things to Do After Filing Income Tax Returns

How to File Form 16 for Salaried Employees?

Tax-Savings Investments and Options in India

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

आयकर स्लैब 2021-2022

Understanding Tax Exemptions in ULIP (Old and New)

Tax Benefits of ULIP Plans Available for NRIs

How to e-Verify your Income Tax Return

Tax-Free Income in India

Tax Saving Options other than Section 80C

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

What are Direct Taxes? How to Avoid being Overtaxed?

E-Filing of Income Tax Returns in India

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

What is the TDS Rate on Salary?

How to View 26AS and Download Form 26AS Online

What are the Different Types of Taxes in India?

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

How to Claim TDS Refund for Excess TDS Deduction?

What is ITR 5 Form and How to File ITR 5?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

धारा 80सी आयकर अधिनियम, 1961

How to save tax for salaried person?

When Should TDS be Deducted and Who is Liable to Deduct it?

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is Form 16B?

How to File Form 10E for Tax Relief on Salary Arrears?

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

What is Section 80C - Explained in Detail

How to e file ITR on Income Tax Government Portal

5 Popular Tax-Saving Schemes in India

Union Budget Highlights – 1st February 2022

7 Important Things to Remember While Investing in a Savings Investment Plan

Saving Income tax in 2017 - 18

Income Tax Deductions for Disabled Person Under Section 80U

How to File Income Tax Return - Everything You Need To Know

What is Form 16A?

What is Salary Protection Insurance and Why You Need It

Income Tax Exemption for Disabled

Tax Planning and Tax Benefits of Life Insurance

Difference Between Gross Income & Total Income in Calculating Income Tax

What is the Percentage of Tax Deducted at Source (TDS)?

Interest Imposed Under Section 234A, 234B and 234C

Income Tax Deductions Under Section 80C

How to View 26AS and Download Form 26AS Online?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

All You Need to Know About Section 80C

How to File ITR Online

Section 80C Deductions as per Income Tax Act, 1961

What is the Difference between Form 16 and Form 16A?

Income Tax Exemption for Physically Handicapped Dependent

Form 16, Form 16A, and Form 16B?

Have You Considered Term Insurance a Part of Your Tax Planning?

Budget 2019: Impact on the Common Man in India

How to Download Form 16?

9 Income Tax Myths That Could Cost You Money while Filing returns

What is TDS Refund Process?

How to Check Income Tax Refund Status Online in India

Difference between Section 80C, 80CCC, 80CCD & 80D

Tax Benefits for Startups in India

What is TDS Exemption Limit?

Tax Saving for Self Employed in India

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Section 16 of the Income Tax Act (ITA), 1961

Income Tax Filing For NRI in India

Are Financial Planning and Tax Planning the Same Thing?

What is Section 80C Deduction Limit?

ITR 1: Sahaj Form

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

What is TDS Slab?

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

How to Save Income Tax with Insurance

Tax Benefit of Investing in Term Plan

What Is Advance Tax and How Is It Calculated?

Section 80G of the Income Tax Act

Investing Lump Sum Amount

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

How To Save Tax Using Life Insurance?

5 Unusual Investments You Didn't Know for Saving Taxes in India

Tax Structure in India

Insurance and Endowment: Everything You Need to Know!

What is Form 26AS - All You Need To Know

What To Do If Your TDS Is Not Deposited With The Government?

ITR-6: Guide to filing ITR-6 Form online

Can You Get Term Insurance Without Income Proof?

How to File Income Tax Return for First Time Tax Payers

How to File Income Tax Return without Form 16

Pradhan Mantri Suraksha Bima Yojana

How to Check Income Tax Refund Status Online in India

Tax Season Is Coming- Know How to Save Tax

Tax Deductions You MUST Know

How to file Form 16 online?

Home Investment Plan to Buy Dream Home

How To Save Tax Better with 80C

Why Tax Planning Should Be an All-year Round Activity

How do I Calculate My Term Insurance Premium

Section 80E: Tax Exemption on Interest on Education Loan

Types of Income Tax Return (ITR) Forms

How to Save Tax on Salary Arrears?

What is ITR & How to File Income Tax Return

Role of Life Insurance in Your Financial Portfolio

How can I get Form 16B from traces?

TDS Due Dates of FY 2020-21 For Return Filing

A Comprehensive Guide to Understand the ITR 7 Form

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

What Investment Options Come with Tax Incentives?

All about TDS on Salary under Section 192 – Kotak Life

All about Online Income Tax Calculator