What is income tax?

[vikramrandhawa]

An income tax is a tax levied on the income of individuals or businesses (corporations or other legal entities). Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual while corporate income taxes often tax net income.

[Michael01]

Income tax is a tax paid to the gov. for income earned . This is to be paid by every employee and self employed people too.Gov. fixes a certain level upto which level there is no need to pay any income tax on that but after such level all incomes are taxable.It is to be paid annually .

[Kotak Mahindra Bank]

Life insurance policies can be useful tax planning tools, because the policy holder is eligible for tax benefits under the Income Tax Act 1961 (Act). Though there are multiple modes for saving tax, life insurance is one of the most effective tax planning instrument. With our unit linked life insurance plans individuals can not only save tax but also look at achieving their long term goals.

[yorkmax]

friends please allow me to say something about this topic .and let me know if am wrong .An income tax is a tax levied on the income of individuals or businesses (corporations or other legal entities). Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs). Various systems define income differently, and often allow notional reductions of income (such as a reduction based on number of children supported).

[ameenahmad]

Really nice your info about income Tex.
Income tax is tax paid on individual earnings from salaries and investments. Though income tax is mostly progressive, some wealthy..

[mary444]

I think that this detailed information is very much helpful for me.

[shopperpk]

nice information, I think government employees are not bound to pay income taxes. This is because of their low income or may be of some other reason.

[ryzeup45@gmail.com]

very informative so far i has not cleared idea about income tax but now its very much clear. thank you.

[JennfieSmith]

Your post is an informative one with a valuable stuff regarding the income tax. It is really essential to know about the process of income tax.