Income tax is levied on an individual’s income but you only have to pay tax when your income falls into the slab. That is because you are also paying for goods and services tax known as GST which is one of the most common taxes and generates high revenue for the government.Īnother most common and highest-earning revenue tax is the Income-tax. You all must have noticed whenever you go out to eat or buy some stuff you always pay more than the price of the goods and services. If someone bought a new property or jewelry, they need to declare it to the government and if it is taxable then one has to pay tax for that. Taxpayers pay a portion of their income or wealth to the government annually. The government uses this tax money to build and develop its nation and provide services such as education, health, sanitation, and security of the nation. In simple words, it is the amount that taxpayers pay to the government for the infrastructure and development of the country. Tax can be charged on goods, services, wealth, income, property, and sale & purchase of merchandise.
The word tax is originally derived from taxation which means it is a compulsory financial charge that is paid to the government.
