Income tax is a tax imposed by the government on the income earned by individuals and businesses. It is a percentage of the income that varies based on tax brackets.
You can save tax by investing in various schemes such as PPF, NSC, and ELSS, and claiming deductions under Sections 80C, 80D, and other applicable sections.
Common documents include Form 16 (for salaried individuals), bank statements, investment proofs, TDS certificates, and details of other income sources.
Foreign income is taxed based on the resident status of the individual or entity. Residents need to report global income, while non-residents are taxed only on income earned in India.