Income tax in India

Central Revenue collections in 2007–08
  1. Personal income tax 7.43 (5.23%)
  2. Corporate taxes 45.99 (32.3%)
  3. Other taxes 1.83 (1.29%)
  4. Excise taxes 35.84 (25.2%)
  5. Customs duties 17.46 (12.3%)
  6. Other taxes 1.68 (1.18%)
  7. other taxes 31.96 (22.5%)

Income tax in India is governed by Entry 82 of the Union List of the Seventh Schedule to the Constitution of India, empowering the central government to tax non-agricultural income; agricultural income is defined in Section 10(1) of the Income-tax Act, 1961. The income-tax law consists of the 1961 act, Income Tax Rules 1962, Notifications and Circulars issued by the Central Board of Direct Taxes (CBDT), annual Finance Acts, and judicial pronouncements by the Supreme and high courts of India.

The government taxes certain income of individuals, Hindu Undivided Families (HUF's), companies, firms, LLPs, associations, bodies, local authorities and any other juridical person. Personal tax depends on residential status. The CBDT administers the Income Tax Department, which is part of the Ministry of Finance's Department of Revenue. Income tax is a key source of government funding.

The Income Tax Department is the central government's largest revenue generator; the total tax revenue increased from ₹1,392.26 billion (US$16 billion) in 1997–98 to ₹5,889.09 billion (US$70 billion) in 2007–08. In 2018–19, direct tax collection reported by the CBDT was about ₹11.17 lakh crore (₹11.17 trillion).

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