Income Tax

Income tax is a tax that is charged by government on the income of individuals and businesses. The tax is a revenue or we can say income for the government. Government uses this tax in developing the educational institutions, hospitals, infrastructure, subsidy to farmers, and many other basic needs.

Taxes are of two types:

1.       Corporate tax
2.       Income Tax

Who should pay Income tax?

1. Individuals
2. Hindu undivided family
3. Association of Persons
4. Body of individuals
5. Firms
6. Companies

Types of Incomes:

• Income from other resources – savings bank accounts, lotteries etc..
• Income from house property- House rent
• Income from capital gains- Sale of capital asset
• Income from profession
• Income from salary