> ## 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

> **[Calculator APIs](https://developer.sandbox.co.in/api-reference/it/calculator/overview.md)**
>
> Calculate profit & loss and capital gains for domestic securities (equity, mutual funds, derivatives), foreign investments, and crypto.

> **[Report APIs](https://developer.sandbox.co.in/api-reference/it/report/overview.md)**
>
> Get profit & loss reports for securities and crypto tax compliance.

> **[OCR APIs](https://developer.sandbox.co.in/api-reference/it/ocr/overview.md)**
>
> Extract tax documents like Form 16 automatically. Classify and parse data for verification.

## What you can do

> **[IT Recipes](https://developer.sandbox.co.in/recipes/it/introduction.md)**
>
> Step-by-step guides for common income tax workflows.

> **[Authentication](https://developer.sandbox.co.in/api-reference/authenticate.md)**
>
> How to authenticate your API requests.

> **[Error handling](https://developer.sandbox.co.in/guides/developer-resources/errors.md)**
>
> API error codes and troubleshooting.

> **[Rate limits](https://developer.sandbox.co.in/guides/developer-resources/rate_limits.md)**
>
> API rate limits and best practices.

## 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

> **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.

> **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.

> **What is Form 16?**
>
> Form 16 is a TDS (Tax Deducted at Source) certificate from employers showing salary and deductions. The [OCR API](https://developer.sandbox.co.in/api-reference/it/ocr/overview.md) extracts this data from PDFs.

> **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.

> **Can I generate tax reports for multiple financial years?**
>
> Yes, the [Report APIs](https://developer.sandbox.co.in/api-reference/it/report/overview.md) generate profit & loss reports for any date range, covering multiple financial years or specific tax periods.

> **[Income Tax](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)**
>
> Pricing and how businesses use Sandbox for tax P\&L, ITR filing, and document processing.


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