Income-tax Act, 1961

The principal law governing the taxation of income in India. It applies for financial years up to and including FY 2025-26 (AY 2026-27), after which it is replaced by the Income-tax Act, 2025. Below are plain-language summaries of the most-referenced sections.

Official source ↗

Basis of Charge

§ 4Charge of income-tax § 5Scope of total income § 6Residence in India

Exemptions

§ 10Incomes not included in total income

Heads of Income

§ 15Salaries — chargeability § 24Deductions from income from house property § 28Profits and gains of business or profession

Presumptive Tax

§ 44ABTax audit § 44ADPresumptive income — business § 44ADAPresumptive income — professionals

Capital Gains

§ 45Capital gains — chargeability § 54Exemption on sale of residential house

Deductions

§ 80CDeduction for investments & payments § 80DDeduction for health insurance

Rebate & Relief

§ 87ARebate for resident individuals

Return & Assessment

§ 139Return of income § 143Assessment § 147Income escaping assessment (reassessment)

TDS / TCS

§ 194ATDS on interest (other than securities)§ 194CTDS on payments to contractors § 194JTDS on professional / technical fees § 194ITDS on rent

Interest & Fees

§ 234AInterest for late filing of return § 234BInterest for default in advance tax § 234CInterest for deferment of advance tax § 234FFee for late filing of return