> ## Documentation Index
> Fetch the complete documentation index at: https://developer.sandbox.co.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

> Overview of Income Tax API by Sandbox - Tax API Stack for India by Quicko.

# Income Tax API

Income tax is a direct tax on income earned by individuals and companies in India. Use these APIs to calculate capital gains tax and extract data from tax documents. Generate profit & loss reports for tax compliance.

Capital gains are taxed by holding period, asset class, and regime under the Income Tax Act, 1961. Tax rates differ for short-term and long-term gains depending on asset category.

## Features

<CardGroup cols={2}>
  <Card title="Calculator APIs" icon="calculator" href="/api-reference/it/calculator/overview">
    Calculate profit & loss and capital gains for domestic securities (equity, mutual funds, derivatives), foreign investments, and crypto.
  </Card>

  <Card title="Report APIs" icon="file-invoice" href="/api-reference/it/report/overview">
    Get profit & loss reports for securities and crypto tax compliance.
  </Card>

  <Card title="OCR APIs" icon="file-lines" href="/api-reference/it/ocr/overview">
    Extract tax documents like Form 16 automatically. Classify and parse data for verification.
  </Card>
</CardGroup>

## What you can do

<CardGroup cols={2}>
  <Card title="IT Recipes" icon="book-open" href="/recipes/it/introduction">
    Step-by-step guides for common income tax workflows.
  </Card>

  <Card title="Authentication" icon="key" href="/api-reference/authenticate">
    How to authenticate your API requests.
  </Card>

  <Card title="Error handling" icon="triangle-exclamation" href="/guides/developer-resources/errors">
    API error codes and troubleshooting.
  </Card>

  <Card title="Rate limits" icon="gauge" href="/guides/developer-resources/rate_limits">
    API rate limits and best practices.
  </Card>
</CardGroup>

## Common use cases

Use the Income Tax API to:

* Calculate capital gains tax for stock trading and portfolio platforms
* Generate P\&L reports for investment advisory services
* Automate Form 16 extraction for HR and payroll systems
* Process cryptocurrency tax filings
* Estimate tax impact during transactions
* Build compliance tools for wealth management

## Frequently asked questions

<AccordionGroup>
  <Accordion title="What is capital gains tax?">
    Capital gains tax applies to profits from selling investments. Tax rates depend on holding period (short-term vs long-term) and asset type under the Income Tax Act, 1961.
  </Accordion>

  <Accordion title="Which asset classes do the Calculator APIs support?">
    The Calculator APIs handle domestic securities (equity, mutual funds, derivatives), foreign securities, and cryptocurrency. Holding periods are classified automatically.
  </Accordion>

  <Accordion title="What is Form 16?">
    Form 16 is a TDS (Tax Deducted at Source) certificate from employers showing salary and deductions. The [OCR API](/api-reference/it/ocr/overview) extracts this data from PDFs.
  </Accordion>

  <Accordion title="How are short-term and long-term capital gains determined?">
    Holding period determines the classification. Equity and equity mutual funds held over 12 months are long-term. Debt funds and cryptocurrency require 36 months. Tax rates vary by asset class under Income Tax regulations.
  </Accordion>

  <Accordion title="Can I generate tax reports for multiple financial years?">
    Yes, the [Report APIs](/api-reference/it/report/overview) generate profit & loss reports for any date range, covering multiple financial years or specific tax periods.
  </Accordion>
</AccordionGroup>

<Card title="Income Tax" icon="https://mintcdn.com/sandboxfinancialtechnologiesprivatelimited/gviqebbpT5NUt_6i/static/svg/workload-icons/IT.svg?fit=max&auto=format&n=gviqebbpT5NUt_6i&q=85&s=14a80a802f855b27041f72a4ccef2ab8" href="https://sandbox.co.in/income-tax?utm_campaign=cta-banner&utm_source=in-co-sandbox-developer&utm_medium=direct&utm_content=api-reference-it-overview" width="45" height="45" data-path="static/svg/workload-icons/IT.svg">
  Pricing and how businesses use Sandbox for tax P\&L, ITR filing, and document processing.
</Card>