Income Tax

Section 4 of the Income Tax Act, 1961 is the charging section which contains that-

Tax shall be charged at the rates formulated by the Annual Finance act for the year.
Tax is charge is on every person specified u/s 2(31).
Shall be Tax chargeable on the total income earned during the previous year (not the assessment year).
Tax shall be charged according to various provision of this act.

Rates of Tax-

Income tax is to be charged at a prescribed or fixed for the year by the Annual Finance Act. It varies according to different- different person.

The Basis of Charge is as follows:

1. Individual/ Hindu Undivided family/ Association of Person/ body of Individuals/ Artificial Juridical Person
a)	Upto Rs.250000	Nil
b)	Rs 250001- Rs. 500000	5 % Of ( Total Income- Rs.250000)
c)	Rs. 500001- Rs. 1000000	Rs. 12500+ 20 % of (Total Income-Rs.500000)
d)	Above Rs. 1000000	Rs.112500 + 30 % of (Total Income- Rs.1000000)
2. For Senior Citizens (being resident individuals of the age 60 years or more but less than 80 years)
a)	Upto Rs.300000	Nil
b)	Rs. 300001- Rs. 500000	5 % Of ( Total Income-Rs. 300000)
c)	Rs. 500001- Rs. 1000000	Rs.10000+ 20% of ( Total Income-Rs. 500000)
d)	Above Rs. 1000000	Rs.110000 + 30% of (Total Income- Rs. 1000000)

1. For Super Senior Citizens (Being resident individual more than 80 years)
a)	Upto 500000	Nil
b)	Rs. 500001- Rs. 1000000	20% of (Total Income – Rs.500000)
c)	Above Rs. 1000000	Rs. 100000+ 30% of (Total Income –Rs. 1000000