Income tax in India is like a portion of your earnings that you give to the government to fund various important things in the country. It’s based on how much money you make. If you earn more, you usually pay more tax.
There are different tax rates for different income levels. If you earn less, you pay a lower percentage. If you earn more, you pay a higher percentage.
Some things can reduce the tax you pay, like deductions or credits. For example, if you invest in certain things, you might pay less tax.
You usually have to file a tax return every year. This tells the government how much you earned and how much tax you’ve already paid. Then, they figure out if you owe more tax or if they owe you a refund.