Charge of income-tax
[Section 4 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 4(1) of Income Tax Act 2025
4(1) Income-tax for any tax year shall be charged as per the provisions of this Act at the rate or rates which are enacted by a Central Act for such tax year.
Section 4(2) of Income Tax Act 2025
4(2) The charge of income-tax under sub-section (1) shall be on the total income of the tax year of every person as per the provisions of this Act.
Section 4(3) of Income Tax Act 2025
4(3) Income-tax shall also include any additional income-tax, by whatever name called, levied under this Act.
Section 4(4) of Income Tax Act 2025
4(4) If this Act provides that income-tax is to be charged in respect of income of a period other than the tax year, it shall be charged accordingly.
Section 4(5) of Income Tax Act 2025
4(5) For the income chargeable under sub-section (2), income-tax shall be deducted or collected at source or paid in advance as provided under this Act.
FAQs on Section 4 of Income Tax Act 2025
1. What is the basis for charging income tax under the Income Tax Act, 2025?
Income tax is charged as per Section 4(1) of the Act at the rates specified by a Central Act for the relevant tax year.
2. On what income is income tax levied?
As per Section 4(2), income tax is levied on the total income of a person for the tax year, as per the provisions of the Act.
3. Does income tax include any additional taxes?
Yes, Section 4(3) states that income tax includes any additional income-tax, regardless of its name, if levied under this Act.
4. Can income tax be charged on income from a period other than the tax year?
Yes, as per Section 4(4), if the Act provides for taxing income from a period different from the tax year, tax shall be charged accordingly.
5. How is income tax collected?
Under Section 4(5), income tax on chargeable income is collected through tax deduction at source (TDS), advance tax payments, or direct payments as prescribed in the Act.
The Income Tax Act, 2025, establishes the legal framework for charging income tax on individuals and entities. It mandates that tax be levied on total income at prescribed rates and includes additional taxes where applicable.
The Act also provides flexibility for taxing income from periods other than the standard tax year when required. Furthermore, it ensures tax collection through mechanisms like TDS, advance tax, or direct payments, ensuring compliance and systematic revenue collection.
