From Filing to Planning: Navigating Indian Taxes with TaxKitab

India’s tax system may seem complicated at first glance — with various laws, authorities, and forms — but once you understand the basics, it becomes much easier to navigate. Whether you're a salaried individual, a freelancer, a business owner, or a first-time taxpayer, this guide by TaxKitab is here to simplify the fundamentals for you.

🧾 What Is Taxation?

Tax is a mandatory financial charge imposed by the government to fund public services like healthcare, education, defense, and infrastructure. In India, taxes are broadly categorized into direct and indirect taxes.

📂 Two Main Types of Taxes in India

1. Direct Taxes

These are taxes paid directly to the government by individuals or organizations. They're based on income or profit.

Examples:

• Income Tax (for individuals and businesses)

• Corporate Tax (for companies)

• Capital Gains Tax (on profit from sale of assets)

• Securities Transaction Tax (on trading in shares)

💡 If you earn money, invest, or sell assets — direct taxes apply to you.

2. Indirect Taxes

These are taxes collected by intermediaries (like retailers) and paid to the government. They're applied on goods and services.

Examples:

• Goods and Services Tax (GST) – applied at every stage of the supply chain

• Customs Duty – on imported goods

• Excise Duty – now mostly merged with GST

💡 You pay indirect taxes every time you shop, dine out, or buy a service.

💼 Who Needs to Pay Income Tax in India?

You're liable to pay income tax if your annual income exceeds the basic exemption limit. As of FY 2025-26:

✅ Salaried employees
✅ Freelancers and consultants
✅ Businesses
✅ NRIs earning income in India

📊 Income Tax Slabs (FY 2025–26)

🆕 New Regime (Default from AY 2025-26)

The new regime offers lower rates but fewer deductions.

📁 Key Income Tax Forms

📅 Important Tax Dates

• 31st July – Last date to file ITR (for most individuals)

• 15th March / 15th June / 15th Sep / 15th Dec – Advance Tax Installments

• 31st Jan / 31st Oct – Audit-related filings (for businesses)

Mark your calendars — missing deadlines can lead to penalties.

💸 Deductions to Save Tax

Under the old regime, you can reduce your taxable income using deductions:

New regime? You’ll have to give up most of these.

🤔 New Regime or Old Regime?

TaxKitab Tip: Run both calculations before choosing one during filing.

🧮 How to File Your Tax Return?

You can file your Income Tax Return (ITR) via:

1. https://www.incometax.gov.in – the official portal

2. Tax filing platforms like TaxKitab

3. With help from a Chartered Accountant

Steps:

1. Collect documents – Form 16, Form 26AS, bank/investment proofs

2. Choose correct ITR form

3. Calculate total income and tax liability

4. Claim deductions (if using old regime)

5. File & e-verify your return

⚠️ Penalties for Non-Compliance

✅ Final Words from TaxKitab

Understanding Indian taxes is the first step to financial empowerment. While the rules may seem overwhelming, tools like TaxKitab are designed to simplify your journey — whether you're filing your first return or optimizing your taxes for long-term savings.

📌 Ready to Get Started?

Visit TaxKitab.com to file your taxes in minutes, explore deduction tools, and access tax-saving guides tailored to your income type.