Savings On Your Income Tax

1. Individuals [including non-residents], Hindu Undivided Families, Associations of Persons/Bodies of Individuals, where the individual shares of the members are known and artificial juridical persons (such as deities of temples) having taxable income exceeding Rs. 1,10,0003 [Rs. 1,00,000 for A.Y. 2007-08].

Resident women assessees below 65 years Rs. 1,45,0003 [Rs. 1,35,000 for A.Y. 2007-08].

Resident senior citizens Rs.1,95,0003 [Rs. 1,85,000 for A.Y. 2007-08].

2. Societies and Charitable/Religious trusts having taxable income exceeding Rs. 1.10.0003 [Rs. 1,00,000 for A.Y. 2007-08] 

3. Partnership Firms irrespective of their income.

4. Co-operative Societies irrespective of income.

5. Companies irrespective of income

6. Local authorities irrespective of income

7. AOP/BOI where shares of the members are indeterminate or unknown irrespective of income

To start with, The Heads of income that are classified for Different Types of Income, for the purposes of computation of total income and charging of incometax as per the Income Tax Act, 1961.

1. Salaries
2. Interest on Securities 
3. Profits & Gains of business or profession
4. Capital Gains
5. Income from other sources

Now, we will know the definition of the above mentioned heads of income, as defined in Sec. 17(1) of the Income Tax Act.