What is income tax

what is income tax
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Quick Summary
Income tax is a direct tax levied by the government on the earnings of individuals and businesses. The amount of tax payable is calculated based on your taxable income, often using progressive rates that increase with higher earnings. Different entities, like individuals, partnerships, and companies, have varying tax structures, with corporate tax typically applied at a flat rate.

Income tax is a form of tax imposed by the government directly on the person on the income earned by that person
An income tax is a tax imposed on individuals or entities/business(taxpayers) that varies with respective income or profits (taxable income). Income tax generally is computed as the product of a tax rate times taxable income. Taxation rates may vary by type or characteristics of the taxpayer.

The tax rate may increase as taxable income increases (referred to as graduated or progressive rates). The tax imposed on companies is usually known as corporate tax and is levied at a flat rate. Individual income is often taxed at progressive rates. For firm, LLP flat rate is applicable like Flat 30% tax.
Income tax is tax on Income earned by any person in excess of examption limit . person under Income Tax is follows

1. Individual
2. Partnership Firm
3. Company
4. AOP/ BOI
6. Local Authority
7. Artificial Judicial Person
Income tax is a direct tax payable by every individual and various types of assesse .
It is a product of a tax rate coupled by a factor on income after allowing for exemptions and deductions.
But the government has set aside some tax slab which has certainly given for a class of assesse..

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