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Income Tax

Everything you need to know about income tax

A simple and straightforward definition for income tax is- the tax that is on someone’s income is called income tax. So, to fully understand the charge, we need to understand the basics of the income tax, that is- tax and income.

What is tax and what is income?

Tax is an amount of payment that is mandatory to be paid to the government. So, income tax would be- the amount of tax of one’s income, needed to be paid.

An income tax is that type of charge which government imposes on someone’s financial income produced by all within the government supervision. As per the law, the individuals doing businesses and services must file the income tax every year. Income tax is a fundamental source of the funds which the government uses to continue its activities and in serving the public.

Separating the term, Income Tax

In every country, fees must be paid to the government, so that the government can build up the various facilities for us. So, the main logic behind paying tax is that we use the services of the state so, we must pay the fee.

We pay a certain amount of tax to the government in many ways. Also, we pay another way of charge through our income, what we call the income tax. The important word that is needed to be understood here is income. Otherwise, you will not have a proper idea of what the income tax is.

Paying the income tax

In every country, fees must be paid to the government, so that the government can build up the various facilities for us. So, the main logic behind paying tax is that we use the services of the state so, we must pay the fee.

Various types of income tax

The Indian income tax system is based on the income tax section 80C. The list of the qualifying investments is given below.

Various tax penalties of the Indian Taxation system

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