Income tax is required to be paid by any person on the Income earned in a particular financial year. As per section 2(31) of the Income Tax  Act, 1961 there are seven categories of persons

1. Individual
2. Hindu Undivided Family
3. Company
4. Firm (including LLP-Limited Liability Partnership)
5. Association of Persons or a Body of Individuals
6. Local authority
7. Every artificial juridical person not falling within any of the above

The Government prescribes the rate of tax and slabs on which person are taxed. Those under higher income slabs are taxed at higher rate. The government also provides various exemptions and rebates in the income tax. The rate of tax, tax slabs, exemption, rebates etc. keep changing time to time.