Income subject to tax

Income Subject to Tax – Income subject to tax is the portion of an individual’s or entity’s earnings that falls under taxable provisions according to the applicable tax laws. It represents the total income after accounting for exemptions and exclusions that the law allows. Included Sources: Wages and salaries Business or professional income Interest, dividends, and capital gains Rental income Other taxable miscellaneous income Excluded or Exempted Sources: Certain agricultural income Specified government allowances Tax-free investments, if applicable Example: If an individual earns ₹10 lakh in a financial year, but ₹1 lakh is from a tax-exempt government allowance, then ₹9 lakh is the income subject to tax for that Assessment Year.