Income tax, explained step by step.
Learn how income is classified, computed, and taxed, from residential status and the five heads of income to deductions, tax regimes, TDS, and return filing.
Course overview
Income tax is a direct tax charged on the income earned by individuals, businesses, and other taxpayers. This course shows how to classify income under different heads, compute taxable income, and complete the compliance steps of paying tax and filing a return.
- Understand basic income tax terms, taxpayer types, and how tax is charged
- Determine residential status and its effect on the scope of taxable income
- Compute income from salary, including allowances, perquisites, and deductions
- Calculate income from house property for let-out and self-occupied properties
- Work out business and profession income with allowed and disallowed expenses
- Compute short-term and long-term capital gains and income from other sources
- Apply exemptions and deductions, then calculate total taxable income and tax
- Compare the old and new tax regimes, and understand TDS, advance tax, and return filing
Income Tax lessons
Follow the lessons in order, or search and filter to jump to a subject.
Income Tax Basics
Learn key terms such as assessee, income, previous year, and tax year.
Residential Status
Understand how residential status decides which income is taxable.
Income from Salary
Study salary components, allowances, perquisites, and deductions.
Income from House Property
Learn how rental income is computed for let-out and self-occupied homes.
Business and Profession Income
Explore how profits from business or profession are calculated.
Capital Gains
Understand short-term and long-term gains on selling capital assets.
Income from Other Sources
Cover interest, dividends, gifts, and other residual income.
Deductions and Exemptions
See which incomes are exempt and which deductions reduce tax.
Taxable Income Calculation
Combine all heads step by step to reach total taxable income.
Old vs New Tax Regime
Compare the two regimes and learn how to choose between them.
TDS and Advance Tax
Understand tax deducted at source and tax paid in instalments.
Income Tax Return Filing
Learn who must file, which form to use, and the filing process.
Learn each head, then put it all together.
The lessons start with core concepts and residential status, cover each head of income, then move to deductions, taxable income, regimes, and finally TDS and return filing.