Income tax
Income tax generally is computed as the product of a tax rate times the taxable income.
What is Income Tax?
A direct tax levied on the net income earned by an individual, company or any other person is called to be as “Income Tax”.
The amount that is calculated as Income Tax is calculated as a percentage on the earnings of the said person or entity.
Each person is required to declare their earnings to the government by way of an annual income tax return and pay their taxes due as per the applicable laws.
Non-payment of taxes and non-filing of tax returns is punishable by the law.
Who should pay Income Tax?
In India; Income tax is levied by the Govt. Of India under the Income Tax Act,1961. The money collected into the government coffers is used to pay for expenses on infrastructure, development fund and other services and expenses needed to perform the government tasks and obligations that are required for smooth running of a nation.