The default setup in Gmail is to deliver all incoming Emails to Inbox, which naturally leads to all types of Email messages from various types of senders landing in the Inbox.
If you are receiving a large number of Email Messages, the default setup in Gmail can lead to flooding of the Inbox with all types of important and unimportant Emails from multiple senders.
Hence, Gmail provides the option to create Filters, which can be configured to direct Emails matching different Filter Criteria to different Folders within Gmail Account.
For example, you can create a Filter in Gmail to direct payment related Emails from Netflix, Amazon Prime and other subscription services to a Folder named as “Receipts” within your Gmail Account.
Create Filters & Labels in Gmail Account
Gmail provides the option to create Folders (which Gmail calls as Labels) and Filters at the same time and also the option to create Labels (Folders) first and apply Filters to these pre-created Labels (Folders).
In this example, we are going with the option to create Filter & Label at the same time.
1. Login to your Gmail Account > Click on the Gear icon located at top-right corner and select Settings in the drop-down menu.
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2. On the Settings screen, click on Filters and Blocked Addresses link.

3. On the next screen, click on Create a New Filter option.

4. On the next screen, you can specify any Filter Criteria like Sender Name, Sender Email, Subject, Has Attachment, Has Words and other Criteria.
After specifying Filter Criteria (From Sender in this case), click on Create Filter with this Search link.

5. On the next screen, select Apply the Label option, click on Choose Label and select New Label option in the drop-down.

6. On the pop-up, type a Name for your New Label and click on Create.

7. Once the new Label is created, select Skip the Inbox and Apply filter to matching messages option and click on Create Filter button.

Skip the Inbox: Received Emails with matching Filter Criteria will skip the Inbox and land directly in the New Filter (Folder) that you have Created.
Also Apply Filters to matching Messages: Selecting this option moves existing messages with matching Filter Criteria from Inbox to the New Label or Folder that you just created.
8. Once you click on create Filter button, Gmail will create a New Folder or Label with your specified Filter Criteria and place it in the sidebar menu under Categories tab.

Now all the Email Messages that match the set Filter Criteria will be landing directly in to the new Label or Folder that you created in above steps.