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An introduction to Income Tax


The income tax may be defined as the amount of money that is paid to the government by individuals. The government deducts the income tax to fulfill the purpose of making the country growing financially. By deducting the income tax, government decides the actual income of you and according to that, the overall financial situation of the country can be decided. The direct tax that is paid by us to the government is called the Income Tax. The Income tax plays a huge roll in the economical growth of the country. The income tax helps the country to be economically stable. The income tax is deducted by the government from the income of individuals.The origin of the word ‘Tax’ is ‘taxation’. The meaning of the word ‘taxation’ is ‘estimate’. Therefore, income tax means income estimate. It was the idea of Augustus Ceaser to apply the tax system on all around the world. Augustus is known in the history as the first roman employer. The popularity of the idea of the income tax was also reach in Greece, Germany and other countries by time. The income taxes also deducted based on occupations of the people.Income Tax and governmentThe income tax plays a great role in the economical growth of the country. The money, which is needed to run the country, is paid by us to the government in the form of income tax. The government decides the actual financial situation of the individual. By collecting income tax, government can decide the amount of money that is circulated all over the country, people to people. The economical strength of the country is also decided from the amount of money that is paid to the government by the tax payers. The country runs due to the government and the government runs due to income tax. The income tax is a way for the government to get money for the country. The money that is collected by the income tax is used to make country more powerful in every sector. There are many fields where government has to pay money. The development of country is based on many features. A country is considered to be powerful if it is having a growth in every field such as Science and Aeronautics, Army and Navy Forces, Civil Services, Education, Information Technology, Film industry and many more.Types of income TaxThere are various tax systems in the world. The tax systems vary country to country. The tax system in one country may be completely different than the tax system in the other country. We talk about the general types of tax here. Generally, there are two types of income tax. 1. Personnel tax:The personnel tax is known as the tax deducted from the person’s individual income. Some part of the total income of individual is paid to the government according to the laws.2. Corporate tax:The corporate tax is for the industries. The total gain of company is taxable. Companies make profit and from that money, government takes its part in the form of income tax.

The modern tax industry is growing speedily. The process of tax payment has also been complicated. The need of the tax professionals has been there in the tax market. For the common man, it is obviously a confusing process of the payment of tax. The choice of experienced tax professional in the payment process is saves time and money.

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