Explanation:

The Income Tax Department is a government agency undertaking direct tax collection of the Government of India. It functions under the Department of Revenue of the Ministry of Finance. Income Tax Department is headed by the apex body Central Board of Direct Taxes. Any individual or artificial body or group of individuals that earns more than the basic exemption limit are expected to pay income tax. Under the Income Tax Act, the persons liable to pay income tax include individuals, Association of Persons, Hindu Undivided Families, Body of Individuals, companies, artificial judicial persons, firms and local authorities.