Income tax is a tax imposed on the income earned by individuals and businesses in India. The income tax system in India is governed by the Income Tax Act, 1961 and administered by the Income Tax Department of the Government of India.

Individuals and businesses in India are required to file an annual income tax return, declaring their income and claiming any deductions or credits to which they are entitled. The income tax rate varies depending on the income earned and the category of the taxpayer, with higher income earners generally paying a higher rate of tax.

In addition to the income tax rate, businesses are also required to pay a surcharge and education cess on their income tax liability.

To ensure compliance with income tax laws and regulations, businesses and individuals should keep accurate records of their income and expenses, maintain up-to-date employee records, and file their income tax returns in a timely manner.