SHORT ANSWER:
Salary income is taxed under the Income Tax Act, 1961.
DETAILS:
- Income tax is levied on the total salary earned in a financial year.
- The tax rate depends on the income slab applicable to the individual.
- Deductions and exemptions may apply under various sections of the Income Tax Act.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to pay tax can lead to penalties and interest on the unpaid amount.
SOURCE:
- Income Tax Act, 1961
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