Income Tax is levied by the Income Tax Department of India which is a government institution. This department charges two types of taxes on income – Direct Tax and Indirect Tax. In case of direct taxes, entities need to directly pay their income tax returns to the Income Tax Department; while in the case of Indirect Taxes,the entity collates the tax on behalf of another and pays it to the Income Tax Department.

• Income from salary
• Profits and gains from business and profession
• Income from house property
• Income from capital gains
• Income from Another sources such as interest on deposits, dividend, royalty income, winning on lottery and many more.
• The Income Tax Department has 7 types of ITR forms ITR-1 ITR-2 ITR-3 ITR-4 ITR-5 ITR-6 ITR-7 and these forms are applicable on the nature and amount of income and the type of taxpayer.