India’s Income Tax System is structured to collect taxes from individuals, businesses, and other entities based on their income. The system is governed by the Income Tax Act of 1961, and it is administered by the Central Board of Direct Taxes (CBDT), which operates under the Department of Revenue in the Ministry of Finance. The key elements of India’s Income Tax System are taxpayers and tax rates. The Indian Income Tax system classifies taxpayers into different categories, each subject to different tax rates.