Income tax return is a form where taxpayers declare their taxable income, deductions, and tax payments. It is mandatory for individuals and entities to file income tax returns annually to report their income and taxes paid to the government.
We have two types of taxes in India – Direct Tax and Indirect tax.
Direct Tax is a tax that is calculated directly on your Income e.g. tax on salary etc. Income tax is a Direct Tax.
Indirect Tax is a tax that is indirectly charged. And is put on goods or services. So if you are purchasing a mobile phone or a new suit. Most indirect taxes have now come under Goods and Services Tax (GST).